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Bank Modeling Primer Sample PDF
Bank Modeling Primer Sample PDF
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Consolidated view
Assets
Liabilities
Cash: $100
Deposits: $200
Loans: $400 Debt: $75
Equity: $225
The equity in the bank is the primary asset of the BHC. Dividends are
distributed from the bank to the BHC, which then distributes the dividends
to its own shareholders.
The consolidated view shows the assets, liabilities, and equity on a
consolidated basis.
Acashloanamounting
to$100ismade;a$5
Borrowermisses
Borrowermisses
loanlossreserveis payment;valueofloan anotherpayment;value
established
declinesto$98 ofloandeclinesto$91
12/31/10
12/31/11
3/31/11
6/30/11
BALANCESHEET
Cash
Grossloans
Less:Allowanceforloanlosses(reserves)
Netloans
TotalAssets
500
0
0
0
500
430
100
5
95
525
450
98
3
95
545
470
91
0
91
561
Liabilities
Equity
TotalLiabilities&Equity
Balancecheck
410
90
500
0
410
115
525
0
410
135
545
0
410
151
561
0
30
0
5
0
5
25
20
0
0
0
0
20
20
0
0
4
4
16
30
100
70
20
0
20
20
0
20
0
0
0
0
5
5
5
2
0
2
0
3
3
7
0
7
4
0
INCOMESTATEMENT
Netinterestincome
Recoveries
+Provisionforcreditlosses
+Unprovisionedchargeoffs
Less:Totalprovisionforcreditlossesexpense(income)
Equals:Pretaxincome
CASHFLOWSTATEMENT
Cashinflows/outflowsfromoperations
Cashinflows/outflowsfromfinancing
Netcashflowsduringperiod
Allowanceforloanlosses(reserves)BOP
Loanschargedoff
+ Chargedoffloansthathavebeenrecovered
Netchargeoffs
+ Provisionforcreditlosses
AllowanceforloanlossesEOP
0
0
0
0
0
28
Acashloanamounting
to$100ismade;a$5
Borrowermisses
Borrowermisses
loanlossreserveis payment;valueofloan anotherpayment;value
established
declinesto$98 ofloandeclinesto$91
immediately
aheadofsale;
loansarere
valuedat$93
loanissoldfor
$93
12/31/10
12/31/11
3/31/11
6/30/11
9/30/11
9/30/11
BALANCESHEET
Cash
Grossloans
Less:Allowanceforloanlosses(reserves)
Netloans
TotalAssets
500
0
0
0
500
430
100
5
95
525
450
98
3
95
545
470
91
0
91
561
470
93
0
93
563
563
0
0
0
563
Liabilities
Equity
TotalLiabilities&Equity
Balancecheck
410
90
500
0
410
115
525
0
410
135
545
0
410
151
561
0
410
153
563
0
410
153
563
0
30
0
5
0
5
25
20
0
0
0
0
20
20
0
0
4
4
16
0
2
0
0
2
2
0
0
0
0
0
0
30
100
70
20
0
20
20
0
20
0
0
0
0
93
93
0
0
0
0
5
0
5
5
2
0
2
0
0
3
3
7
0
7
4
0
0
0
0
2
2
0
2
0
0
0
0
0
0
0
0
INCOMESTATEMENT
Netinterestincome
Recoveries
+Provisionforcreditlosses
+Unprovisionedchargeoffs
Less:Totalprovisionforcreditlossesexpense(income)
Equals:Pretaxincome
CASHFLOWSTATEMENT
Cashinflows/outflowsfromoperations
Cashinflows/outflowsfromfinancing
Netcashflowsduringperiod
Allowanceforloanlosses(reserves)BOP
Loanschargedoff
+ Chargedoffloansthathavebeenrecovered
Netchargeoffs
+ Provisionforcreditlosses
Eliminationofreserve
AllowanceforloanlossesEOP
0
0
0
0
0
0
29
60%
50%
40%
30%
20%
10%
0%
1992
1997
2002
2007
2008
2009
2010
Net charge-offs
Source: FDIC
30
62
> 7%
Tier 1 / RWA
> 8.5%
> 10.5%
> 3%
2.5%
63