Bank Analysis School Case Study

Sunny State Bank

LIQUIDITY - LOAN COMMITMENTS

Loan Commitments / Total Assets (Bank vs. Peer)

13.0%

12.4%

12.0%

11.0%

10.0%

9.4%

Metrics

8.9%

8.9%

8.7%

9.0%

8.6%

Bank State All Banks

8.7%

9.0%

8.2%

8.6%

8.0%

7.7%

8.0%

7.5%

7.0%

7.1%

7.1%

7.0%

6.6%

6.6%

6.7%

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

Loan Commitments / Total Assets (By Loan Type)

14%

12%

10%

Metrics

8%

Other (Ag) HELOCs Credit Cards CRE

6%

4%

2%

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

Unfunded loan commitments include unused balances on agricultural operating loans, construction loans, HELOCs, etc. When borrowers draw on the lines of credit, the cash outflows could negatively impact a bank's liquidity position.