The Negative Effects of Leverage on Banks

Since 2019 to today the bank has generated a over 1% return assets in a 4.1% net margin is that something that kind of in your head you start to think what type of loans are they making to generate that yeah. Their leverage went up a bit because it's very low as at seven times their loss reserves went up more than what we've seen in other banks generally a big banks and stuff so that would kind of disguise it would make their earnings look worse than they were but like I said the leverage part did go up but loans to deposits went down suggesting that the leverage thing was securities coming in being put into  securities.