Bank Analysis School Case Study eBook

Sunny State Bank

ASSET SIZE & GROWTH

Asset Size - Bank vs. State Median

Asset Size Over Time

20X5Q4

$100M

Quarter

Bank

State Median

$80M

$180M

$60M

$40M

$140M

$20M

$100M

$82,223,000

$60M

20X9Q2

20X9Q3

20X9Q4

20X0Q1

20X0Q2

20X0Q3

20X0Q4

20X1Q1

20X1Q2

20X1Q3

20X1Q4

20X2Q1

20X2Q2

20X2Q3

20X2Q4

20X3Q1

20X3Q2

20X3Q3

20X3Q4

20X4Q1

20X4Q2

20X4Q3

20X4Q4

20X5Q1

20X5Q2

20X5Q3

20X5Q4

$20M

Quarter

Total Assets Annual Growth Rate

Net Loans Annual Growth Rate

24.0%

7.1%

8.0%

8.2%

20.9%

6.0%

20.0%

3.9%

4.0%

16.0%

2.3%

2.0%

Metrics

12.0%

0.0%

(1.0%)

Bank State All Banks

6.9%

8.0%

(2.0%)

3.9%

4.0%

(4.0%)

1.0%

(4.5%)

2.1%

(5.0%)

0.0%

(6.0%)

(0.7%)

(2.7%)

(4.0%)

20X9Q4

20X0Q4

20X1Q4

20X2Q4

20X3Q4

20X4Q4

20X5Q4

20X9Q4

20X0Q4

20X1Q4

20X2Q4

20X3Q4

20X4Q4

20X5Q4

Annual Growth Dates

Asset Size Qtr

20X5Q4

20X9Q2

20X9Q3

20X9Q4

20X0Q1

20X0Q2

20X0Q3

(All)

2013

The risk management practices suggested in regulatory guidance are often based on the size and risk profle of a bank, making it important to be aware of the relative size of a bank. Something to keep in mind is that it can be difcult to achieve asset growth without taking on risk. E.g. loosening loan underwriting standards to grow loan volume, funding asset growth with wholesale sources, etc. The total assets and net loans growth rates measure growth over the past 12 months (keep in mind that mid-year quarters will capture some growth from the prior calendar year).