Table 9
Comparison of Low-Cost Failures and Near-Failures |
| |
Low-Cost |
High-Cost |
Differencea |
| AS OF ONE YEAR BEFORE THE PCA DATE |
| Number of Institutions |
16 |
39 |
23 |
| Median Total Assets ($MM) |
72 |
59 |
(13) |
| Median Asset Growth |
5.06 |
0.34 |
(4.72) |
| Institutions with CAMELS Rating of 4 or 5 (%) |
75.00 |
64.10 |
(10.90) |
| Median Balance Sheet Percentages |
| Investment Securities |
15.00 |
10.35 |
(4.65) |
| 1-4 Family Mortgages |
16.95 |
15.28 |
(1.67) |
| Commercial Real Estate |
14.35 |
10.76 |
(3.59) |
| Multifamily Real Estate |
1.42 |
1.00 |
(0.42) |
| Commercial & Industrial Loans |
7.43 |
8.85 |
1.42 |
| Deposits |
90.66 |
92.00 |
1.34 |
| Median Rolling Four-Quarter Performance Ratios |
| Return on Assets |
(0.09) |
(0.72) |
(0.63) |
| Return on Equity |
(4.43) |
(12.89) |
(8.46) |
| Yield on Earning Assets |
8.66 |
8.46 |
(0.20) |
| Cost of Funding Earning Assets |
3.90 |
4.04 |
0.14 |
| Net Interest Margin |
4.70 |
4.68 |
(0.02) |
| Noninterest Income to Earning Assets |
1.16 |
1.54 |
0.38 |
| Noninterest Expense to Earning Assets |
5.57 |
6.21 |
0.64 |
| Net Operating Income to Assets |
(0.81) |
(0.75) |
0.06 |
| Net Charge-offs to Loans |
0.56 |
1.48 |
0.92 |
| Loss Provision to Average Assets |
0.99 |
1.21 |
0.22 |
| Loss Provision to Net Charge-offs |
149.17 |
129.06 |
(20.11) |
| Efficiency Ratio |
97.91 |
90.36 |
(7.55) |
| Median Condition Ratios |
| Loss Allowance to Loans |
2.00 |
2.07 |
0.07 |
| Loss Allowance to Noncurrent (Coverage Ratio) |
58.67 |
43.47 |
(15.20) |
| Noncurrent & OREO to Assets |
4.32 |
4.62 |
0.30 |
| OREO to Assets |
0.97 |
1.08 |
0.11 |
| Noncurrent RE Loans to RE Loans |
2.22 |
3.14 |
0.92 |
| Noncurrent Loans & Leases to Loans & Leases |
3.63 |
4.33 |
0.70 |
| Noncurrent Loan Growth |
43.67 |
3.92 |
(39.75) |
| Equity Capital Ratio |
6.68 |
6.28 |
(0.40) |
| Core Capital (Leverage) Ratio |
6.56 |
5.94 |
(0.62) |
| Equity Capital plus Reserves to Assets |
8.19 |
7.77 |
(0.42) |
| aNone of these differences were found to be statistically significant at the 10% level |
