Bank Analysis School Case Study

Sunny State Bank

CAPITAL RATIOS - TREND

Tier One Leverage Ratio

Total Capital Ratio

11.00%

20.00%

10.00%

17.96%

17.52%

18.00%

8.90%

8.88% 8.97%

8.55% 8.78% 8.66% 8.75%

16.85%

8.70%

16.57%

9.00%

16.49%

8.41%

8.18% 8.30%

8.24%

16.09%

16.57%

15.94%

7.96%

7.89%

15.51%

16.00%

16.52%

8.51%

8.44%

8.00%

16.15%

14.71%

15.71%

7.72%

7.74%

15.32%

7.69%

15.28%

7.00%

14.66%

14.53%

14.00%

6.00%

12.00%

20X0 Q4

20X1 Q1

20X1 Q2

20X1 Q3

20X1 Q4

20X2 Q1

20X2 Q2

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

20X2 Q3

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

Tier One Capital Ratio

Common Equity Tier One Ratio

11.00% 12.00% 13.00% 14.00% 15.00% 16.00% 17.00% 18.00%

10.00% 12.00% 14.00% 16.00% 18.00%

16.87%

16.15%

15.58%

16.87%

15.45%

15.12%

14.94% 14.52%

16.57%

16.13%

13.92% 13.86%

16.13%

15.78%

15.38%

15.78%

15.74%

14.76%

14.58%

15.38%

15.81%

13.81%

15.12%

14.94%

15.69%

15.45%

14.92%

13.92%

14.76%

14.58%

2.00% 4.00% 6.00% 8.00%

13.81%

0.00% 0.00% 0.00%

20X2 Q2

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

20X0 Q4

20X1 Q1

20X1 Q2

20X1 Q3

20X1 Q4

20X2 Q1

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

The Common Equity Tier One Ratio became a new ratio in 2015. The Community Bank Leverage Ratio framework became effective in 2020 (banks opting into this framework do not report risk-weighted assets). The horizontal dotted lines in the charts reflect Prompt Corrective Action well capitalized thresholds ■ State ■ Banks

■ All Banks

*NOTE* Banks that opt in to the CBLR framework will not have certain Capital ratios reported

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