Bank Analysis School Case Study eBook

Sunny State Bank

POSSIBLE LENDING CONCENTRATIONS (% of Tier 1 Capital + ALLL)

Possible Concentrations (% of Tier One Capital + ALLL)

20X5Q4

Quarter

Agricultural

Commercial

CRE

20% 40% 60% 80% 100%

55%

33%

22%

Concentration Levels Over Time

35%

20%

5% 50% Agricultural Commercial CRE 20% 60% 100% 30%

10%

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

Possible Conc. Qtr

The horizontal dotted lines correspond to the concentration threshold of 100% of Tier One Capital and reserves. Note that for this calculation CRE does not include owner occupied properties.

20X5Q4