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FDIC Banking Review

Table 6
Scorecard
(Weightings Based on Well-Capitalized and Highly-Rated Institutions Only)
  Range of Scores Maximum Score
Scoring Factor
Nonaccrual Loans / Total Assets < 0.5% 30 30
Nonaccrual Loans / Total Assets = 0.5–1.0% 26  
Nonaccrual Loans / Total Assets = 1.0–1.5% 23  
Nonaccrual Loans / Total Assets = 1.5–2.0% 21  
Nonaccrual Loans / Total Assets = 2.0–2.5% 20  
Nonaccrual Loans / Total Assets > 2.5% 0  
Loans Past Due 90+ Days / Total Assets < 0.5% 25 25
Loans Past Due 90+ Days / Total Assets = 0.5–1.0% 22  
Loans Past Due 90+ Days / Total Assets = 1.0–1.5% 20  
Loans Past Due 90+ Days / Total Assets = 1.5–2.0% 18  
Loans Past Due 90+ Days / Total Assets = 2.0–2.5% 13  
Loans Past Due 90+ Days / Total Assets > 2.5% 0  
ORE / Total Assets < 0.5% 20 20
ORE / Total Assets = 0.5–1.0% 16  
ORE / Total Assets = 1.0–1.5% 14  
ORE / Total Assets = 1.5–2.0% 12  
ORE / Total Assets = 2.0–2.5% 11  
ORE / Total Assets > 2.5% 0  
Loans Past Due 30–89 Days / Total Assets < 0.5% 14 14
Loans Past Due 30–89 Days / Total Assets = 0.5–1% 12  
Loans Past Due 30–89 Days / Total Assets = 1–1.5% 10  
Loans Past Due 30–89 Days / Total Assets = 1.5–2% 9  
Loans Past Due 30–89 Days / Total Assets = 2–2.5% 8  
Loans Past Due 30–89 Days / Total Assets > 2.5% 0  
Pretax Net Operating Income / Average Assets > 0.5% 7 7
Pretax Net Operating Income / Average Assets = 0–0.5% 4  
Pretax Net Operating Income / Average Assets < 0% 0  
Noncore Funding / Total Assets <= 40% 3 3
Noncore Funding / Total Assets > 40% 0  
Equity & Reserves / Total Assets > 7.0% 1 1
Equity & Reserves / Total Assets <= 7.0% 0  
Total   100
Application of Scoring Framework
If institution is 1A and total score is >= 97, classify as 1A1
If institution is 1A and total score is < 97 and >= 87, classify as 1A2
If institution is 1A and total score is < 87, classify as 1A3
Adjusting Factor if Noncore Funding / Total Assets > 40%
Market Adjustment for Standard and Poor’s AA– or Better 3  
Market Adjustment for Standard and Poor’s A– to A+ 1  
Market Adjustment for Standard and Poor’s BBB+ or Worse 0  

Last Updated 12/16/2003 Questions, Suggestions & Requests