Bank Analysis School - September 2023

Internal Use Only

Basic Facts: • Babe Ruth has an unsecured $5,000 loan for personal expenses. • He is unable and unwilling to make any more payments on the debt. • The loan is currently 240 days past due. Loan Classification Decision #4 (Babe Ruth)

How would you classify this loan?

Internal Use Only

Classification Amounts Feed into the Adversely Classified Items Coverage Ratio

Sunny State Bank

Adverse classification / Tier 1 Capital and ALLL