After Turn 1

The bank has made its first move: adding a block of high-yielding, fixed-rate, high-risk loans. It’s an aggressive opening that pushes up its yield but also introduces a mix of exposure.

You now earn a 5.33% yield on earning assets, with a cost of funds at 1.52%, producing a net interest margin of 4.31%. Despite that, the bank is still posting a net loss, with ROE at -2.84%, primarily because overhead costs are high relative to the small revenue base.

Credit quality is fair at 675, a reflection of your high-risk loans. Liquidity sits at 32.4%, which is solid, and rate risk is elevated at -15.9%, a warning sign that your balance sheet could be vulnerable if interest rates shift.

It’s a first step — bold, but with some vulnerabilities. The question now: how will management build around it?