Bank Analysis School eBook

Cash Inflows (Sources) and Outflows (Uses) Use/Outflow Inflow/Source • New loans • New investments • Loan payments/payoffs • Investment payments, maturities, sales Asset-Based

• Deposit growth • New borrowings

• Deposit runoff • Debt payments/payoffs

Liability-Based

Source (Inflow)

Use (Outflow)

Assets

 

 

Liabilities/Capital

Note: be mindful of non-cash accounting entries (e.g. depreciation, accruals)

Analyzing Past Sources and Uses

This Year

Last Year

Difference

Loans

703,000 112,000

656,000 102,000

+ 47,000 + 10,000

Use (Outflow)

Securities

Use (Outflow)

Deposits

695,000 15,000 23,500

655,000 20,000

+ 40,000

Source (Inflow)

Brokered Deposits

- 5,000

Use (Outflow)

Borrowings

1,500

+ 22,000

Source (Inflow)

*This is not Sunny State Bank