Table 2: Univariate Statistics by BOPEC Rating, 1988–1992
Means and BOPEC Ratings for New Bank Holding Company Inspections
(Quarterly Data)
BOPEC Rating 1 2 3 4 5 p value1
 
Supervisory Variables
Number of days from last BOPEC inspection 582 506 362 194 331 0.001
CAMELS rating of lead bank before inspection 1.31 1.98 2.83 3.58 4.44 0.001
Previous BOPEC inspection 1.17 1.96 2.72 3.4 4.03 0.001
 
Financial Accounting Variables (percent)
Log Total Assets 14.83 14.78 14.79 14.46 14.03 0.001
Equity/Total Assets 8.27 7.24 6.53 5.66 1.72 0.001
Tangible Equity/Total Assets 8.07 7.12 6.37 5.44 2.58 0.001
Annualized Quarterly Return on Assets 1.16 0.87 0.18 –0.82 –2.43 0.001
Loans Past Due 30 Days/Total Assets 0.84 1.12 1.53 2.06 3.04 0.001
Loans Past Due 90 Days/Total Assets 0.21 0.29 0.37 0.48 0.92 0.001
Nonaccrual Loans/Total Assets 0.46 0.88 2.14 3.73 5.3 0.001
Loan-Loss Reserves/Total Assets 0.86 1.01 1.64 2.41 3.04 0.001
Loan-Loss Provisons/Total Assets 0.19 0.29 0.66 1.25 1.44 0.001
Charge-offs/Total Assets 0.19 0.32 0.62 1.12 1.62 0.001
Liquid Assets/Total Assets 7.77 7.24 7.37 7.28 5.06 0.001
Volatile Liabilities/Total Assets 9.31 8.98 9.18 7.91 4.12 0.001
Time Deposits >$100,000/Total Assets 10.1 9.97 10.89 9.78 11.56 0.009
 
Financial Market Variables
Average Quarterly Price 30.11 23.44 16.34 9.52 2.25 0.001
Coefficient of Variation of Price (%) 4.14 5.31 7.85 11.98 20.31 0.001
Cumulative Quarterly Returns 0.05 0.05 0.03 0.02 –0.03 0.001
Abnormal or Excess Quarterly Returns (equal weighted) –0.03 –0.02 –0.06 –0.08 –0.11 0.001
Abnormal or Excess Quarterly Returns (value weighted) 0.01 0.01 –0.01 –0.02 –0.58 0.001
Std. Deviation Quarterly Returns 0.02 0.02 0.03 0.05 0.11 0.001
Std. Deviation ROA (8 quarters) 0.12 0.19 0.54 1.05 2.22 0.001
Market Equity to Book Equity 1.44 1.13 0.85 0.66 0.64 0.001
Market Equity/Market Equity + Total Liabilities (%) 0.11 0.08 0.54 0.04 0.01 0.001
Total Liabilities/Market Equity + Preferred Stock 8.79 13.05 20.55 36.94 185.73 0.001
Share Turnover (%) 7.17 10.23 16.68 17.93 17.29 0.001
Number of Observations 257 661 327 209 71  
 
1 p values are determined by a Van der Waerden test.  This procedure tests whether the distribution of the variable has the same location parameter across different groups.

Table 3: Univariate Statistics by BOPEC Rating: 1993–1995
Means and BOPEC Ratings for New Bank Holding Company Inspections
(Quarterly Data)

BOPEC Rating

 1 2 3 4 5 p value1

Supervisory Variables

Number of days from last BOPEC inspection

 535 491 404 334 384 0.001

CAMELS rating of lead bank before inspection

 1.34 2.13 3.09 3.89 4.6 0.001

Previous BOPEC inspection

 1.32 2.17 3.28 3.91 4.5 0.001

Financial Accounting Variables (percent)

Log Total Assets

15.2 14.86 13.75 13.41 12.65 0.001

Equity/Total Assets

 8.97 8.32 7.67 6.56 3.7 0.001

Tangible Equity/Total Assets

 8.77 8.26 7.53 6.49 4.32 0.001

Annualized Quarterly Return on Assets

 1.31 1.06 0.61 –0.51 –3.89 0.001

Loans Past Due 30 Days/Total Assets

 0.65 0.81 1.27 0.32 3.18 0.001

Loans Past Due 90 Days/Total Assets

 0.12 0.15 0.28 0.32 0.96 0.001

Nonaccrual Loans/Total Assets

 0.36 0.75 1.92 3.22 2.61 0.001

Loan-Loss Reserves/Total Assets

 1.02 1.24 1.78 2.33 3.55 0.001

Loan-Loss Provisons/Total Assets

 0.12 0.14 0.36 0.84 2.4 0.001

Charge-offs/Total Assets

 0.16 0.24 0.55 1.05 2.47 0.001

Liquid Assets/Total Assets

 25.36 22.93 15.55 12.03 9.07 0.001

Volatile Liabilities/Total Assets

 11.58 9.75 4.96 3.57 1.38 0.001

Time Deposits > $100,000/Total Assets

 6.20 6.5 6.16 5.51 10.3 0.001

Financial Market Variables

Average Quarterly Price

 33.59 27.77 15.57 8.33 2.10 0.001

Coefficient of Variation of Price (%)

 5.37 4.52 6.71 10.28 18.53 0.001

Cumulative Quarterly Returns

 0.05 0.05 0.07 0.12 –0.06 0.087

Excess Quarterly Returns (equal weighted)

 –0.04 –0.03 –0.03 0.02 –0.13 0.111

Excess Quarterly Returns (value weighted)

 0.01 0.02 0.04 0.09 –0.07 0.064

Std. Deviation Quarterly Returns

 0.02 0.02 0.04 0.06 0.1 0.001

Std. Deviation ROA (8 quarters)

 0.16 0.25 0.59 1.06 2.16 0.001

Market Equity to Book Equity

 1.65 1.37 1.10 1.02 0.93 0.001

Market Equity/Market Equity + Total Liabilities(%)

0.14 0.11 0.08 0.07 0.04 0.001

Total Liabilities/Market Equity + Preferred Stock

 6.96 8.73 12.47 18.22 42.78 0.001

Share Turnover (%)

 9.36 0.14 0.17 21.08 0.11 0.001

Number of Observations

 239 435 97 57 10

1 p values are determined by a Van der Waerden test.  This procedure tests whether the distribution of the variable has the same location parameter across different groups.

Table 4: Univariate Statisitics by BOPEC Rating, 1996–2000
Means and BOPEC Ratings for New Bank Holding Company Inspections
(Quarterly Data)

BOPEC Rating

 1 2 3 4 5 p value1

Supervisory Variables

Number of days from last BOPEC inspection

 513 522 410 405 114 0.03

CAMELS rating of lead bank before inspection

 1.13 1.91 2.72 3.50 4.00 0.001

Previous BOPEC inspection

 1.18 1.94 2.62 2.73 4.00

Financial Accounting Variables (percent)

Log Total Assets

14.83 14.40 13.59 13.13 12.66 0.001

Equity/Total Assets

 9.39 8.35 7.29 5.65 3.56 0.001

Tangible Equity/Total Assets

 8.86 8.10 7.44 5.82 4.96 0.001

Annualized Quarterly Return on Assets

 1.31 1.01 0.47 –0.89 –3.49 0.001

Loans Past-Due 30 days/Total Assets

 0.64 0.75 0.88 0.74 2.12 0.001

Loans Past-Due 90 days/Total Assets

 0.12 0.16 0.20 0.35 0.17 0.148

Nonaccrual Loans/Total Assets

 0.28 0.45 0.85 1.24 0.17 0.001

Loan-Loss Reserves/Total Assets

 0.92 9.92 1.08 1.40 3.07 0.001

Loan-Loss Provisons/Total Assets

 0.13 0.16 0.44 0.41 5.02 0.001

Charge-offs/Total Assets

 0.14 0.16 0.42 0.46 3.93 0.001

Liquid Assets/Total Assets

 29.53 27.77 26.23 32.73 39.94 0.002

Volatile Liabilities/Total Assets

 10.41 10.14 7.77 3.69 8.18 0.001

Time Deposits >$100,000/Total Assets

 8.95 10.61 12.42 14.86 6.59 0.001

Financial Market Variables

Average Quarterly Price

 35.96 26.32 15.36 8.25 7.06 0.001

Coefficient of Variation of Price (%)

 5.84 6.15 7.34 10.01 15.17 0.001

Cumulative Quarterly Returns

 0.03 0.03 –0.01 –0.09 0.11 0.021

Excess Quarterly Returns (equal weighted)

 –0.02 –0.03 –0.08 –0.11 –0.09 0.047

Excess Quarterly Returns (value weighted)

 0.00 –0.01 –0.05 –0.08 –0.08 0.095

Std Deviation Quarterly Returns

 0.02 0.02 0.03 0.05 0.07 0.001

Std. Deviation ROA (8 quarters)

 0.13 0.19 0.37 1.09 2.08 0.001

Market Equity to Book Equity

 2.24 1.91 1.24 1.09 297.27 0.001

Market Equity/Market Equity + Total Liabilities(%)

0.18 0.14 0.09 0.06 2.97 0.001

Total Liabilities/Market Equity + Preferred Stock

 5.41 7.21 13.05 18.54 8.69 0.001

Share Turnover (%)

 10.00 13.10 15.10 22.70 9.32 0.001

Number of Observations

 736 807 55 12 1

1 p values are determined by a Van der Waerden test.  This procedure tests whether the distribution of the variable has the same location parameter across different groups.


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