Table 4
Comparison of Low-Cost and High-Cost Failures |
| |
Low-Cost |
High-Cost |
Difference |
| AS OF ONE YEAR BEFORE THE PCA DATE |
| Number of Institutions |
16 |
29 |
13 |
| Median Total Assets ($MM) |
72 |
71 |
(1) |
| Median Asset Growth |
5.06 |
(5.94) |
(11.00) |
| Institutions with CAMELS Rating of 4 or 5 (%) |
75.00 |
79.30 |
4.30 |
| Median Balance Sheet Percentages |
| Investment Securities |
15.00 |
8.39 |
(6.61)* |
| 1-4 Family Mortgages |
16.95 |
10.20 |
(6.75)* |
| Commercial Real Estate |
14.35 |
15.85 |
1.50 |
| Multifamily Real Estate |
1.42 |
1.66 |
0.24 |
| Commercial & Industrial Loans |
7.43 |
12.93 |
5.50 |
| Deposits |
90.66 |
92.23 |
1.57 |
| Median Rolling Four-Quarter Performance Ratios |
| Return on Assets |
(0.09) |
(1.56) |
(1.47) |
| Return on Equity |
(4.43) |
(23.27) |
(18.84) |
| Yield on Earning Assets |
8.66 |
8.86 |
0.20* |
| Cost of Funding Earning Assets |
3.90 |
4.05 |
0.15 |
| Net Interest Margin |
4.70 |
5.32 |
0.62** |
| Noninterest Income to Earning Assets |
1.16 |
1.42 |
0.26 |
| Noninterest Expense to Earning Assets |
5.57 |
6.96 |
1.39 |
| Net Operating Income to Assets |
(0.81) |
(1.73) |
(0.92) |
| Net Charge-offs to Loans |
0.56 |
1.81 |
1.25 |
| Loss Provision to Average Assets |
0.99 |
1.73 |
0.74 |
| Loss Provision to Net Charge-offs |
149.17 |
103.65 |
(45.52) |
| Efficiency Ratio |
97.91 |
97.91 |
0.00 |
| Median Condition Ratios |
| Loss Allowance to Loans |
2.00 |
2.91 |
0.91 |
| Loss Allowance to Noncurrent (Coverage Ratio) |
58.67 |
37.83 |
(20.84) |
| Noncurrent & OREO to Assets |
4.32 |
9.79 |
5.47*** |
| OREO to Assets |
0.97 |
3.15 |
2.18** |
| Noncurrent RE Loans to RE Loans |
2.22 |
6.53 |
4.31* |
| Noncurrent Loans & Leases to Loans & Leases |
3.63 |
6.93 |
3.30 |
| Noncurrent Loan Growth |
43.67 |
1.90 |
(41.77)* |
| Equity Capital Ratio |
6.68 |
5.65 |
(1.03) |
| Core Capital (Leverage) Ratio |
6.56 |
5.59 |
(0.97) |
| Equity Capital plus Reserves to Assets |
8.19 |
8.14 |
(0.05) |
|
Note: For failed institutions that did not file a Call Report or TFR showing that they were critically undercapitalized,
the Call Report or TFR one year before the Final Report was used.
*Significant at the 10% level
**Significant at the 5% level
***Significant at the 1% level
|
