Bank Analysis School Case Study

Sunny State Bank

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

Possible Concentrations (% of Tier One Capital + ALLL)

Quarter

20X5 Q4

Agricultural

Commercial

CRE

20% 40% 60% 80% 100%

55%

33%

22%

Concentration Levels Over Time

5% 15% 25% 35% 45%

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

10%

20X0 Q4

20X1 Q4

20X2 Q4

20X3 Q2

20X4 Q2

20X5 Q2

20X1 Q2

20X2 Q2

20X3 Q4

20X4 Q4

20X5 Q4

20X1 Q1

20X1 Q3

20X2 Q1

20X2 Q3

20X3 Q1

20X3 Q3

20X4 Q1

20X4 Q3

20X5 Q1

20X5 Q3

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.

20X5 Q4