Bank Analysis School Case Study eBook

Sunny State Bank

EARNINGS - ASSET YIELDS ANNUALIZED

One Quarter Annualized Yield on Loans

5.60%

5.49%

(All)

5.44%

5.41%

5.35%

5.40%

20X9Q2

5.31%

5.29%

5.25% 5.24%

5.35%

20X9Q3

5.29%

Metrics

5.25%

5.20%

20X9Q4

Bank State All Banks

5.11%

20X0Q1

5.00%

20X0Q2

4.80%

20X0Q3

20X0Q4

20X3Q1

20X3Q2

20X3Q3

20X3Q4

20X4Q1

20X4Q2

20X4Q3

20X4Q4

20X5Q1

20X5Q2

20X5Q3

20X5Q4

20X1Q1

One Quarter Annualized Yield on Securities

20X1Q2

2.80%

20X1Q3

2.67%

20X1Q4

2.63%

2.58%

2.60%

20X2Q1

2.52%

20X2Q2

2.40%

2.41%

2.40%

2.35% 2.33%

20X2Q3

2.32%

20X2Q4

2.20%

20X3Q1

2.22%

20X3Q2

2.00%

2.03%

20X3Q3

20X3Q4

20X4Q1

20X3Q1

20X3Q2

20X3Q3

20X3Q4

20X4Q1

20X4Q2

20X4Q3

20X4Q4

20X5Q1

20X5Q2

20X5Q3

20X5Q4

Higher yielding loan and securities portfolios beneft the NIM but could be indicative of higher-risk (high risk = high expected return). Strong loan volume typically has a positive impact on the NIM, and vice versa, because loans are typically the highest-yielding asset category. A chart showing the Net Loans to Assets Ratio can be found in the Liquidity section of this report.