Bank Analysis School eBook

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How Would You Rate Sunny State Bank?

• Earnings are strong; more than sufficient to support operations and maintain adequate capital and ALLL. 1 • Earnings are satisfactory; sufficient to support operations and maintain adequate capital and ALLL. 2 3 • Earnings are deficient; insufficient to support operations, capital, and ALLL. Significant negative trends and/or erratic fluctuations. Nominal or unsustainable earnings with intermittent losses. 4 • Earnings are critically deficient. Losses represent a distinct threat to viability. 5 • Earnings need to be improved; may not fully support operations and provide for accretion of capital ALLL.