Table 1.
Explanatory Variables and Expected Signs for Predicting Nonfailure Versus Failure States |
| Variable |
Sign |
| Capital |
| Tangible Equity Capital |
+ |
| Capital Injections: |
| From BHC |
+ |
| Outside |
+ |
| Asset Quality |
| Past-Due Loans (30 - 89 days) |
- |
| Past-Due Loans (90+ days) |
- |
| Nonaccrual Loans and Leases |
- |
| Other Real Estate Owned |
- |
| Allowance for Loan Loss |
+ |
| Management |
| Efficiency Ratio |
- |
| Earnings |
| Total Interest Income |
+ |
| Total Noninterest income |
+ |
| Total Interest Expense |
- |
| Loan-Loss Provision |
- |
| Loan Charge-offs |
- |
| Expenses on Premises |
- |
| Salaries |
- |
| Other noninterest expense |
- |
| Liquidity |
| Volatile Liabilities |
- |
| Loans + Securities > Five Years |
+ |
