Bank Analysis School Case Study

FDIC Certificate # XXXX OCC Charter # 0 Public Report

SUNNY STATE BANK Analysis of Loan Allowance and Loan Mix--Page 7

Allowance & Loan Mix-a

12/31/20X5

12/31/20X4

12/31/20X3

12/31/20X2

12/31/20X1

Analysis Ratios

BANK 0.25 6.72 0.30 0.34 0.03 0.84 0.84 2.77 1.58 -0.03 -1.22 0.00 -4.95 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.76 2.00 0.55 0.00 N/A N/A N/A N/A N/A 1.43 N/A

PG 10 0.12 38.80

PCT

BANK

PG 10 0.10 26.36

PCT

BANK 0.15 4.12 0.19 0.20 0.02 0.76 0.76 4.19 0.84 0.01 0.00 0.00 0.00 0.00 0.01 0.33 0.00 0.00 0.00 -0.03 0.00 -0.04 0.00 1.26 0.27 2.35 0.00 0.00 N/A N/A N/A N/A N/A 1.94 N/A

PG 10 0.12 55.81

PCT

BANK 0.06 41.56

PG 10 0.09 46.20

PCT

BANK

PG 10 0.08 32.77

PCT

Loss Provision to Average Assets Recoveries to Prior Credit Loss Net Loss to Average Total LN&LS Gross Loss to Average Total LN&LS Recoveries to Average Total LN&LS

81 27 76 78 65 21 21 27 50

0.24 6.59 0.50 0.51 0.01 0.70 0.70 1.38 1.24 0.07 0.00 0.00 0.00 0.00 0.09 0.00 0.09 0.00 0.00 0.00 0.00 0.00 N/A 0.00 3.47 0.61 2.27 0.16 N/A N/A N/A N/A N/A 0.21

85 34 86 85 34

68 21 60 50 32 13 13 42 28 59 92 96 93 97 65 96 66 91 93 13 90 88 82 57 80 63 77 26 8

51 64 73 71 65

0.15 0.00 0.18 0.18 0.00 0.97 0.97 5.25 1.43 0.20 4.75 0.00 9.55 0.00 0.00 0.00 0.00 0.00 0.00 0.37 0.00 0.72 N/A 0.00 0.00 0.44 0.47 0.35 0.00 N/A N/A N/A N/A N/A 2.79

73 11 68 55 12 19 20 31 42 82 98 95 97 96 46 92 50 89 95 91 88 95 95 60 67 50 79 80 29

0.17 0.20 0.04 1.32 1.31

0.14 0.20 0.07 1.36 1.36

0.17 0.25 0.07 1.39 1.38

0.32 0.40 0.08 0.72 0.71 2.30 0.79 0.30 0.00 0.00 0.00 0.00 0.10 0.00 0.09 1.05 0.00 2.03 0.00 3.59 N/A 0.00 0.47 0.43 0.23 0.07 0.00 N/A N/A N/A N/A N/A 1.16

0.20 0.27 0.07 1.44 1.43

0.16 0.24 0.07 1.48 1.47

LN&LS Allowance to LN&LS Not HFS LN&LS Allowance to Total LN&LS LN&LS Allowance to Net Losses (X) LN&LS Allowance to Nonaccrual LN&LS (X)

7 7 5

8 8

28.97 4.34

23.81 2.77

11.47 2.73

33.39 4.32

22 31

16.70 3.60

45

Earnings Coverage of Net Losses (X)

41.76

17

29.06

9

12.60

36.55

22

15.97

Net Losses by Type of LN&LS Real Estate Loans Construction & Land Development

0.01 -1.22 0.00 -0.10 0.00 0.02 -0.01 0.02 -0.12 0.00 0.00 0.08 -0.04 0.00 0.10 0.42 0.43 3.09 0.12 0.46 0.00 0.00 0.00 0.00 0.00

12

0.02 -0.13 0.00 -0.22 0.02 0.04 -0.14 0.05 -0.03 -0.39 0.01 0.03 -0.09 0.00 0.04 0.30 0.32 3.80 0.16 0.35 0.00 0.00 0.00 0.00 0.00

82 97 98 96 96 75 98 76 94 98 88 86 95 89 92 73 75 65

0.05 -0.05 -0.23 -0.07 0.01 0.07 0.00 0.06 -0.02 0.00 0.04 0.04 0.02 0.00 0.01 0.51 0.31 2.28 0.20 0.57 0.00 0.00 0.00 0.00 0.00

0.10 0.00 -0.11 0.02 0.00 0.07 -0.01 0.07 -0.01 0.29 0.08 0.07 0.01 0.00 -0.02 0.52 0.26 3.82 0.14 0.09 0.00 0.00 0.00 0.00 0.00

87 92 97 91 93 72 94 74 95 97 95 83 98 95 73 76 46 71 86

0.09 -0.06 0.03 -0.10 0.06 0.13 0.00 0.13 0.03 -0.03 0.04 0.01 0.04 0.00 -0.03 0.24 0.35 3.78 0.14 0.17 0.00 0.00 0.00 0.00 0.00

6

1-4 Family Construction Other Construction & Land Secured by Farmland 1-4 Family Residential Loans Home Equity Loans 1-4 Family 1st Lien Loans 1-4 Family Jr Lien Loans

98

4

94 73 97 73 98 98 92 91 98 88 65 92 60 88 79

Multifamily Loans

Non-Farm Non-Residential Mtg

Owner Occupied Nonfarm Nonresidential

Other Nonfarm Nonresidential RE Loans in Foreign Offices

N/A

N/A

N/A

N/A

N/A

Agricultural Loans

Commercial and Industrial Loans

Loans to Individuals Credit Card Plans

Auto Loans

Non-Depository, Other & Muni Loans Financial Institution Loans Loans to Foreign Governments

-24.59

1

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A

Lease Financing

Leases to Individuals All Other Leases

Supplemental: Loans to Finance Comml Real Estate

N/A

0.00

N/A

N/A

0.00

N/A

N/A

0.00

N/A

N/A

0.00

N/A

N/A

0.00

N/A

Change: Loan Allowance ($000) Beginning Balance

320 156

352 238

317

404 170

359

Gross Credit Losses

91

77

Memo: Loans HFS Write-down

0

0 6

0 7

0

0 0

Recoveries

16

32

Net Credit Losses

140

232

84

138

77

Provision: Loan & Lease Losses

208

200

119

52

122

Other Adjustments LN&LS Allowance

0

0

0

0

0

388

320

352

317

404

Average Total Loans & Leases

45,935

46,572

45,174

42,507

42,388