Bank Analysis School Case Study

Sunny State Bank

ALLL ACTIVITY

Current Qtr

Prior Year Qtr

20X4 Q4

20X5 Q4

ALLL Activity (Year-to-Date)

ALLL Activity (Prior Year)

Quarter

Quarter

20X5 Q4

20X4 Q4

Beg ALLL Losses

Provisions Other Adj.

50,000 100,000 150,000 200,000 250,000 300,000 350,000

Provisions Other Adj.

50,000 100,000 150,000 200,000 250,000 300,000 350,000

Beg ALLL Losses

Recoveries

Recoveries

Total

Total

ALLL to Total Loans (Level)

ALLL to Total Loans (Trend)

1.60%

Quarter

20X5 Q4

1.40%

1.19%

1.20%

1.20%

1.12%

0.99%

1.00%

0.84%

1.00%

0.97%

0.80%

0.84% 0.86%

0.83%

0.80%

0.75%

0.73%

0.80%

0.70%

0.70%

0.83%

0.60%

0.78%

0.76%

0.74%

0.73%

0.72%

0.71%

0.60%

0.40%

0.58%

0.54%

0.20%

20X0 Q4

20X1 Q1

20X1 Q2

20X1 Q3

20X1 Q4

20X2 Q1

20X2 Q2

20X2 Q3

20X2 Q4

20X3 Q1

20X3 Q2

20X3 Q3

20X3 Q4

20X4 Q1

20X4 Q2

20X4 Q3

20X4 Q4

20X5 Q1

20X5 Q2

20X5 Q3

20X5 Q4

Bank

State

All Banks

High levels of delinquent and nonaccrual loans are often a sign of asset quality problems. Call Report Instructions state loans should be placed on nonaccrual status if they are over 90 days past due unless they are both well-secured and in the process of collection.