Table 9
Logistic Regression of the Incidence of Failure One Year
Following Condition Measurement
(1984–1997 year-end
Call Data)
| Explanatory
Variable |
Coefficient Estimate
(Standard Error) |
| Intercept |
-6.6763 (0.2352)* |
| Equity plus loss reserves |
-0.3847 (0.0140)* |
| Loans past due 30–89 days |
0.1321 (0.0152)* |
| Loans past due 90 days or more |
0.1224 (0.0070)* |
| Gross loan charge-offs |
-0.0507 (0.0121)* |
| Net income |
-0.1961 (0.0097)* |
| Capital rating |
0.1814 (0.0670)* |
| Asset rating |
0.2492 (0.0658)* |
| Management rating |
0.3406 (0.0558)* |
| Earnings rating |
0.0084 (0.0587) |
| Liquidity rating |
0.3802 (0.0463)* |
| “Age” of examination data |
0.6644 (0.0354)* |
Pseudo R Squared = 57%
Somers' D = 0953 |
| * Significant at the 1%
confidence level |
