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Risk Management Manual of Examination Policies
Section 17.1 - Bank of Anytown-Report of Examination
| Listed below are concentrations of obligations, direct and indirect, according to the following guidelines: 1) Concentrations of 25% or more of Tier 1 Capital by individual borrower, small interrelated group of individuals, single repayment source or individual project; 2) Concentrations of 100% or more of Tier 1 Capital by industry, product line, type of collateral, or short term obligations of one financial institution or affiliated group. Any other concentrations may be listed in the 25% category if desired. An appropriate percentage of total assets is used when a bank's capital is so low as to make its use meaningless. U.S. Treasury securities, obligations of U.S. Government agencies and corporations, and any assets collateralized by same are not scheduled. |
| Description |
Detail |
Amount Extended |
| Correspondent Bank Concentration |
First National Bank
Anothercity, Anotherstate |
| Due From Account |
3,025 |
|
| Federal Funds Sold |
4,000 |
|
| The concentration represents 124% of Tier 1 Capital. |
|
7,025 |
| Credit Concentration |
| John and Mary Smith Relationship |
| John Smith |
| Consumer installment |
75 |
|
| John and Mary Smith |
| RE mortgage |
275 |
|
| JMS Corporation |
| JM: John and Mary Smith |
| Secured commercial loans (3) |
685 |
|
| Commercial letters of credit (2) |
215 |
|
| J&M Realty Trust |
| Gty: John and Mary Smith |
| Commercial RE mortgage |
700 |
|
| This concentration represents 34 percent of Tier 1 Capital. |
|
1,950 |
| Industry Concentration |
| Fishing, Hunting, and Trapping Industry (SIC Code 1009) |
| |
|
8,694 |
| This amount is composed of 49 loans to fishing industry-related borrowers. Repayment of these loans is dependent upon the same sources of income and upon extension of fishing rights granted in the Georges Bank by the Canadian Department of Fisheries, which expire in 2005. The industry concentration represents 153 percent of Tier 1 Capital. |
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