Capital Category

The capital level established by Section 131 of the FDIC Improvement Act of 1991. This regulation establishes the capital levels that determine a bank's prompt corrective action capital category. There are five possible categories:
1 = Well Capitalized
2 = Adequately Capitalized
3 = Undercapitalized
4 = Significantly Undercapitalized
5 = Critically Undercapitalized
Well Capitalized:
Risk Adjusted Capital Ratio >= 10.00% and Core Capital to Risk Weighted Assets >= 6.00% and Core Capital to Adj Total Assets >= 5.00%

Adequately Capitalized:
Risk Adjusted Capital Ratio >= 8.00% and Core Capital to Risk Weighted Assets >= 4.00% and Core Capital to Adj Total Assets >= 4.00%

Undercapitalized: Risk Adjusted Capital Ratio < 8.00% or Core Capital to Risk Weighted Assets < 4.00% or Core Capital to Adj Total Assets < 4.00%

Significantly Undercapitalized:
Risk Adjusted Capital Ratio < 6.00% or Core Capital to Risk Weighted Assets < 3.00% or Core Capital to Adj Total Assets < 3.00%

Critically Undercapitalized: Tangible Equity Ratio <= 2.00%

Core Capital/Adjusted Total Assets:

Tier one capital divided by Average total assets + Allowance for loan and lease losses - Excess allowance for loan and lease losses - Memo: reciprocal holdings of banking organizations' capital instruments (most recent December)
***This ratio is sometimes referred to as "Leverage Ratio"

Tangible Equity Ratio:

Tier one capital + Perpetual preferred stock and related surplus - Noncumulative perpetual preferred stock and related surplus divided by Average total assets

Total Capital/Adj Total Assets

Total risk-based capital Divided by Average total assets + Allowance for loan and lease losses - Excess allowance for loan and lease losses - Memo: reciprocal holdings of banking organizations' capital instruments (most recent December)

Risk-Adjusted Capital Ratio

Total risk-based capital Divided by Risk-weighted assets

Risk-Based Capital Calculation (Actual or Estimated?)

1 = Actual, 2 = Estimated

Total risk-based capital

Total risked based capital is the sum of Tier 1 and Tier 2 capital net of all deductions. Deductions are made for investments in banking and finance subsidiaries that are not consolidated for regulatory capital purposes, intentional reciprocal cross-holdings of banking organizations' capital instruments, and other deductions as determined by the reporting bank's primary federal supervisory authority.

Tier one capital

Tier one (core) capital consists of:
(1) common stockholders' equity capital,
(2) noncumulative perpetual preferred stock and any related surplus, and
(3) minority interests in equity capital accounts of consolidated subsidiaries,
less goodwill, other disallowed intangible assets, and disallowed deferred tax assets, and any other amounts that are deducted in determining Tier 1 capital in accordance with capital standards issued by the reporting bank's primary federal supervisory authority.

NOTE: For risk-based capital purposes, common stockholders' equity capital includes any net unrealized holding losses on available-for-sale equity securities with readily determinable fair values, but excludes other net unrealized holding gains (losses) on available-for-sale securities.

Supplementary Capital (Tier 2)

Tier two capital

Tier 2 (supplementary) capital is limited to 100 percent of Tier 1 capital and consists of:
(1) cumulative perpetual preferred stock and any related surplus,
(2) long-term preferred stock (original maturity of 20 years or more) and any related surplus (discounted for capital purposes as it approaches maturity),
(3) auction rate and similar preferred stock (both cumulative and noncumulative),
(4) hybrid capital instruments (including mandatory convertible debt securities),
(5) term subordinated debt and intermediate-term preferred stock (original weighted average maturity of five years or more) to the extent of 50 percent of Tier 1 capital (and discounted for capital purposes as they approach maturity), and
(6) the allowance for loan and lease losses (limited to the lesser of the balance of the allowance account or 1.25 percent of gross risk-weighted assets).

Net Risk-Weighted Assets

Risk-weighted assets

When determining the amount of risk-weighted assets, on-balance sheet assets are assigned an appropriate risk weight (zero percent, 20 percent, 50 percent, or 100 percent) and off-balance sheet items are first converted to a credit equivalent amount and then assigned to one of the four risk weight categories. The on-balance sheet assets and the credit equivalent amounts of off-balance sheet items are then multiplied by the appropriate risk weight percentages and the sum of these risk-weighted amounts, less certain deductions, is the bank's gross risk-weighted assets. These deductions are for goodwill, other disallowed intangible assets, disallowed deferred tax assets, investments in banking and finance subsidiaries that are not consolidated for regulatory purposes, intentional reciprocal cross-holdings of banking organizations' capital instruments, and other deductions as determined by the reporting bank's primary federal supervisory authority. Gross risk-weighted assets minus any excess allowance for loan and lease losses is the bank's net risk-weighted assets, which is the amount to be reported in this item.

Risk Weighted Assets:Zero Percent(Cash and Equivalents & Organization for Economic Cooperation and Development (OECD) Government Obligations)

Actual =
- Assets and credit equivalent amounts of off- balance sheet items assigned to the zero percent risk category:[Assets recorded on the balance sheet:(Securities issued by, other claims on, and claims unconditionally guaranteed by, the U.S. Government and its agencies and other OECD central governments + All other) + Credit equivalent amount of off-balance sheet items]
Estimate =
- Currency and coin + Balances due from Federal Reserve Banks + U.S. Treasury securities + [U.S. Government agency and corporation obligations: (All holdings of U.S. Government-issued or -guaranteed certificates of participation in pools of residential mortgages:Guaranteed by GNMA + All other:All other U.S. Government agency obligations)]

Risk Weighted Assets:20 Percent (Interbank Claims, Other US & Municipal Taxing Authority

Actual =
- Assets and credit equivalent amounts of off- balance sheet items assigned to the 20 percent risk category:[Assets recorded on the balance sheet:(Claims conditionally guaranteed by the U.S. Government and its agencies and other OECD central governments + Claims collateralized by securities issued by the U.S. Government and its agencies and other OECD central governments; by securities issued by U.S. Government-sponsored agencies; and by cash on deposit + All other) + Credit equivalent amount of off-balance sheet items]

Estimate =
- [Cash and balances due from depository institutions:(Noninterest-bearing balances and currency and coin + Interest-bearing balances) - Currency and coin - Balances due from Federal Reserve Banks + Federal funds sold + Securities purchased under agreements to resell + Loans to depository institutions + Acceptances of other banks + U.S. Government agency and corporation obligations: Issued by U.S. Government-sponsored agencies + Pass-through securities: Issued by FNMA and FHLMC + CMOS and REMICs: (Issued by FNMA and FHLMC + Privately issued and collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA) + Securites issued by states and political subdivisions in the U.S.: General obligations + Assets held in trading accounts (banks under $1 billion total assets) + Credit equivalent amount of:[Participations in acceptances conveyed to others by the reporting bank + Securities lent (including customers' securities lent where the customer is indemnified against loss by the reporting bank) + Financial standby letters of credit and foreign office guarantees:Amount of financial standby letters of credit conveyed to others + Performance standby letters of credit and foreign office guarantees:Amount of performance standby letters of credit conveyed to others + Unused commitments with an original maturity exceeding one year: Participations in commitments with an original maturity exceeding one year conveyed to others]

Risk Weighted Assets:50 Percent (Residential Real Estate and Municipal Revenue Bonds)

Actual =
- Assets and credit equivalent amounts of off- balance sheet items assigned to the 50 percent risk category: (Assets recorded on the balance sheet + Credit equivalent amount of off-balance sheet items)

Estimate =
- Securities issued by states and political subdivisions in the U.S.: Revenue obligations + Pass-through securities: Privately-issued + CMOs and REMICs: All other privately-issued + All Other loans secured by 1-4 family residential properties: secured by first liens + Loans secured by multifamily (% or more) residential properties + Credit equivalent amount of:[Mortgages transferred with recourse that have been treated as sold for call report purposes: (FNMA and FHLMC residential mortgage loan pools: Outstanding principal balance of mortgages transferred as of the report date + Private residential mortgage loan pools: Outstanding principal balance of mortgages transferred as of the report date)]

Risk Weighted Assets:100 Percent (Standard Risk Assets)

Actual =
- Assets and credit equivalent amounts of off- balance sheet items assigned to the 100 percent risk category: (Assets recorded on the balance sheet + Credit equivalent amount of off-balance sheet items) - Intangible assets not allowed in Core Capital - Reciprocal holdings of banking organizations' capital instruments - Net unrealized loss on marketable equity securities

Estimate =
- Securities issued by states and political subdivisions in the U.S.: Industrial development and similar obligations + All other domestic debt securities: All other + Foreign debt securities + Equity Securities: (Investments in mutual funds + Other all equity securities with a readily detereminable fair value - Net unrealized loss on marketable equity securities + Other equity securities) + Loans and leases, net of unearned income, excluding those specifically included in other risk-weight categories + Premises and fixed assets (including capitalized leases) + Other real estate owned + Investments in unconsolidated subsidiaries and associated companies + Customers' liability to this bank on acceptances outstanding + Other assets + Credit equivalent amount of:[Participations in acceptances acquired by the reporting (nonaccepting) bank - Participations in acceptances conveyed to others by the reporting bank + Unused commitments with an original maturity exceeding one year - Participations in commitments with an original maturity exceeding one year conveyed to others + Commercial and similar letters of credit + Financial standby letters of credit and foreign office guarantees - Amount of financial standby letters of credit conveyed to others + Performance standby letters of credit and foreign office guarantees - Amount of performance standby letters of credit conveyed to others + Mortgages transferred with recourse that have been treated as sold for call report purposes:(Farmer Mac agricultural mortgage loan pools: Outstanding principal balance of mortgages transferred as of the report date) + All other off-balance sheet liabilities] + Intangible assets allowed in Core Capital - Reciprocal holdings of banking organizations' capital instruments + Losses deferred pursuant to 12 U.S.C. 1823(j)

Gross Off-B/S Credit Equivalent Amt

Actual =
- Credit equivalent amount of off-balance sheet items:(Zero percent risk category + 20 percent risk category + 50 percent risk category + 100 percent risk category)
Estimate =
- Principal balance of private residential mortgage loan pools transferred with recourse + participations in acceptances acquired by bank + (.50 x unused commitments with original maturity exceeding one year + .20 x commercial & similar letters of credit) + (financial standby letters of credit and foreign office guarantees + .50 x performance standby letters of credit and foreign office guarantees) + principal balance of FNMA and FHLMC residential mortgage loan pools transferred with recourse + Principal balance of Farmer Mac agricultural loan pools transferred with recourse + securities lent + replacement cost of interest rate contracts + (.005 x (notional principal value of interest rate contracts with a remaining maturity of 1 to 5 years)) + replacement cost of foreign exchange rate contracts + (.01 x ((notional principal value of foreign exchange rate contracts with a remaining maturity of 1 year or less)) + (.05 x notional principal value of foreign exchange rate contracts with a remaining maturity of over 1 year)

Risk-Weighted Asst/Tot Recorded Asst

Risk-weighted assets Divided by Total assets + Allowance for loan and lease losses + Allocated transfer risk reserve - Total securities: available for sale (fair value) + Total securities: available for sale (amortized cost)

Risk-Weighted Off-B/S Assets/RWA

If Gross assets recorded on the balance sheet > 0, then:
(20 Percent risk category: credit equivalent amount of off-balance sheet items * 0.2) + (50 Percent risk category: credit equivalent amount of off-balance sheet items * 0.5) + 100 Percent risk category: credit equivalent amount of off-balance sheet items Divided by Risk-weighted assets

If Gross assets recorded on the balance sheet <= 0, then:
0.2 * [Participations in acceptances conveyed to others by the reporting bank + Securities lent (including customers' securities lent where the customer is indemnified against loss by the reporting bank) + Amount of financial standby letters of credit conveyed to others + 0.5 * (Amount of performance standby letters of credit conveyed to others ) + 0.5 * (Participations in commitments with an original maturity exceeding one year conveyed to others )] + 0.5 * [Loans transferred with recourse: FNMA, FHLMC residential mortgage loan pools, outstanding principal balance as of the report date + Loans transferred with recourse: private (nongovernment-issued or -guaranteed) residential mortgage loan pools, outstanding principal balance as of the report date] + [Participations in acceptances acquired by the reporting (nonaccepting) bank + All other off-balance sheet liabilities (exclude off-balance sheet derivatives) + 0.5 * (Unused commitments with an original maturity exceeding one year - Participations in commitments with an original maturity exceeding one year conveyed to others ) + 0.2 * (Commercial and similar letters of credit ) - Participations in acceptances conveyed to others by the reporting bank + Financial standby letters of credit and foreign office guarantees - Amount of financial standby letters of credit conveyed to others + Loans transferred with recourse: Farmer Mac agricultural mortgage loan pools, outstanding principal balance as of the report date] Divided by Risk-weighted assets

Core Cap-Loss on AFS Secs/Adj TA

If Net unrealized holding gains (losses) on AFS securities < 0, then:
Tier one capital + Net unrealized holding gains (losses) on AFS securities Divided by Average total assets

If Net unrealized holding gains (losses) on AFS securities >= 0, then:
Tier one capital Divided by Average total assets

Debt as a percent of Total Equity Capital

Notes and debentures subordinated to deposits Divided by Total equity capital

% Change in Core Capital

The annual percent change in Tier one capital

Percent change is calculated as follows:
Current quarter value - same quarter value in the prior year Divided by same quarter value in the prior year

Internal Growth Rate of Equity

Net income (loss) - total cash dividends declared (YTD) Divided by total equity capital, as of prior year-end

Dividend Payout

Cash dividends declared Divided by Income (loss) before extraordinary items and other adjustments

Adjusted Nonperf Assets/TA

Total loans, leases and other assets past due 90 days or more and still accruing + Total nonaccrual loans, leases and other assets - Guaranteed portion of loans and leases which are wholly or partially guaranteed by the U.S. Government: past due 90 days or more and still accruing - Guaranteed portion of loans and leases which are wholly or partially guaranteed by the U.S. Government: nonaccrual + Other real estate owned: all other Divided by Total assets

Nonperf Assets/TL & Repo RE

Total loans, leases and other assets past due 90 days or more and still accruing + Total nonaccrual loans, leases and other assets + Other real estate owned: all other Divided by Loans and leases, net of unearned income + Other real estate owned: all other

Nonperforming Loans as a percent of Gross Loans

Loans past due 90 days or more + Nonaccrual loans and lease financing receivables Divided by Total loans and leases, gross

Other Real Estate Owned divided by Total Assets

Other Real Estate Owned Divided by Total Assets

Adj Nonperf Lns & OREO/TL & OREO

Total loans, leases and other assets past due 90 days or more and still accruing + Total nonaccrual loans, leases and other assets - Debt securities and other assets: past due 90 days or more and still accruing - Debt securities and other assets: nonaccrual + Other real estate owned: all other - Guaranteed portion of loans and leases which are wholly or partially guaranteed by the U.S. Government: past due 90 days or more and still accruing - Guaranteed portion of loans and leases which are wholly or partially guaranteed by the U.S. Government: nonaccrual Divided by Loans and leases, net of unearned income + Other real estate owned: all other

Domestic "Risk" RE Lns/Domestic Lns

Construction and Land Development Real Estate Loans, plus Real Estate Loans Secured by Farm Land, plus Real Estate Loans Secured by 5+ Residential Properties, plus Real Estate Loans Secured by Non-Farm, Non-Residential Divided by Total Domestic Loans and Leases, Gross

Other Nonperforming Loans and Debt Securities as a percent of Total Assets

Debt securities and other assets past due 90 days or more + Nonaccrual debt securities and other assets Divided by Total Assets

Unreserved Nonperforming Loans as a percent of Gross Loans

Loans, leases and other assets past due 90 days or more + Nonaccrual loans and lease financing receivables - Past Due 90 days or more debt securities and other assets - Nonaccrual debt securities and other assets - Past Due 90 days or more guaranteed portion of loans and leases which are wholly or partially guaranteed by the US Govt - Nonaccrual guaranteed portion of loans and leases which are wholly or partially guaranteed by the US Govt - Allowance for loan and lease losses - Allocated transfer risk reserve
Divided by Total Loans and Leases, Gross

US Guaranteed Nonperforming Loans as a percent of Nonperforming Loans

Past Due 90 days or more guaranteed portion of loans and leases which are wholly or partially guaranteed by the US Govt + Nonaccrual guaranteed portion of loans and leases which are wholly or partially guaranteed by the US Govt Divided by Total Nonperforming Loans

Loans Loss Provision as a percent of Net Charge- Offs

Provision for loan and lease losses Divided by Losses charged to allowance for loan and lease losses - Recoveries credited to allowance for loan and lease losses

Earnings Coverage of Net Charge-Offs

Income (loss) before income taxes and extraordinary items and other adjustments - Gains (losses) on securities not held in trading accounts + Provision for loan and lease losses Divided by Losses charged to allowance for loan and lease losses - Recoveries credited to allowance for loan and lease losses

Total Recoveries (Year to Date) as a percent of the Prior Year's Total Charge-offs

Recoveries credited to allowance for loan and lease losses Divided by Losses charged to allowance for loan and lease losses (prior year end)

Return on Average Assets (Annualized)

Income (loss) before extraordinary items and other adjustments Divided by Average total assets

Return on Average Equity (Annualized)

Income (loss) before extraordinary items and other adjustments Divided by Average total equity

Total Overhead Expense (including Mortgage Debt) (Annualized) as a percent of Average Assets

Total noninterest expense + Interest on mortgage indebtedness and obligations under capitalized lease Divided by Average total assets

Operating Profit as a percent of Average Assets

Income (loss) before income taxes and extraordinary items and other adjustments - Gains (losses) on securities not held in trading accounts Divided by Average total assets

Occupancy Expense (incl Mortgage Debt) (Annualized) as a percent of Average Assets

Expenses of premises and fixed assets (net of rental income), (excluding salaries and employee benefits and mortgage interest) + Interest on mortgage indebtedness and obligations under capitalized leases Divided by Average total assets

Tax-Exempt Income Adjustment as a percent of Average Assets

(Taxable equivalent adjustment for: Interest and dividend income on tax-exempt securities issued by states and political subdivisions in the US + Tax-exempt lease income from lease financing receivables + Interest income on tax- exempt obligations of states and political subdivisions in the US + Estimated tax-exempt income on loans and leases to states and political subdivisions in the US Divided by Average total assets

Yield on Average Earning Assets (Tax Adjusted)

Total interest income + [Taxable equivalent adjustment for: (Interest and dividend income on tax-exempt securities issued by states and political subdivisions in the US + Tax-exempt lease income from lease financing receivables + Interest income on tax-exempt obligations of states and political subdivisions in the US + Estimated tax-exempt income on loans and leases to states and political subdivisions in the US)] (annualized) Divided by Average earning assets

Rate on Funds (Excluding Mortgage Indebtedness)

Total interest expense - Interest on mortgage indebtedness and obligations under capitalized leases Divided by Average earning assets

Net Interest Spread (Annualized) as a percent of Average Earning Assets

Total interest income + [Tax Adjustment Factor x (Interest and dividend income on tax-exempt securities: issued by states and political subdivisions in the US + Tax-exempt lease income from lease financing receivables + Interest income on tax-exempt obligations of states and political subdivisions in the US + Estimated tax-exempt income on loans and leases to states and political subdivisions in the US)] - (Total interest expense - Interest on mortgage indebtedness and obligations under capitalized leases)
Divided by Average of: Cash and balances due from depository institutions:Interest-bearing balances + Securities + Federal funds sold and securities purchased under agreements to resell in domestic offices of the bank and of its Edge and Agreement subsidiaries, and in IBFs + Loans and leases, net of unearned income + Assets held in trading accounts

Total Overhead (incl Mortgage Debt) Expense (Annualized) as a percent of Average Earning Assets

Total noninterest expense + Interest on mortgage indebtedness and obligations under capitalized leases Divided by Average earning assets

Net Overhead Expense as a percent of Average Earning Assets

Total noninterest expense + Interest on mortgage indebtedness and obligations under capitalized leases - Total noninterest income Divided by Average earning assets

Yield on Loans (Tax Adjusted)

Interest and fee income on loans + Income from lease financing receivables + [Taxable equivalent adjustment for: (Tax-exempt lease income from lease financing receivables + Interest income on tax-exempt obligations of states and political subdivisions in the US + Estimated tax-exempt income on loans and leases to states and political subdivisions in the US)] (annualized) Divided by Average loans and lease financing receivables, net of unearned income

Yield on Loans

Interest and fee income on loans + Income from lease financing receivables (annualized) Divided by Average loans and lease financing receivables, net of unearned income

Yield on Leases

Income from Lease Financing Receivables (Annualized) Divided by Average Lease Financing Receivables

Yield on Securities (Tax Adjusted)

Interest and dividend income on securities + [Taxable equivalent adjustment for: (Interest and dividend income on tax-exempt securities issued by states and political subdivisions in the US)] (annualized) Divided by Average total securities

Yield on Securities

Interest and dividend income on securities (annualized) Divided by Average total securities

Yield on Bal Due from Dep Inst

Interest Income on Balances Due from Domestic Depository Institutions plus Interest Income on Balances Due from Foreign Depository Institutions (Annualized)
Divided by Average Interest Bearing Balances Due From Depository Institutions

Yield on US Treas Agy&Oth Debt Secs

Interest & Dividends on U.S. Treasury and Agency Securities, plus Interest & Dividends on U.S. Government and Other Debt Securities, plus Interest & Dividends on Other Domestic Debt Securities, plus Interest & Dividends on Foreign Debt Securities (Annualized) Divided by Average U.S. Govt. Agency & Corporation Obligations and Other Debt Securities (excl. State and Political Subs), U.S. Treasuries & Government Agency Obligations, and Other Debt Securities

Yield on Debt Securities

Annualized: [Interest and dividend income on U.S. Government agency and corporation obligations + Interest and dividend income on securities issued by states and political subdivisions in the U.S. (taxable) + Interest and dividend income on securities issued by states and political subdivisions in the U.S. (tax-exempt) + Interest and dividend income on other domestic debt securities + Interest and dividend income on foreign debt securities] Divided by the average of: [Quarterly average: U.S. Treasury securities and U.S. Government agency and corporation obligations + Quarterly average: securities issued by states and political subdivisions in the U.S. + Quarterly average: other debt securities]

***The values in the denominator are reported quarterly averages (from schedule RC-K). When averaging these values, no prior year values are used, just an average of the available quarter values of the current year.

Yield on Municipal Securities

Interest & Dividends on Securities From States and Political Subsidiaries, plus Interest & Dividends on Taxable Securities From States and Political Subsidiaries (Annualized)
Divided by Average Securities Issued by States & Political Subsidiaries

Yield on Equity Securities

Interest & Dividends on Equity Securities (Annualized) Divided by Average Equity Securities

Yield on Trading Accounts

Interest Income from Trading Accounts (Annualized) Divided by Average Trading Assets

Yield on Fed Fnds Sld&Secs Purchased

Interest on Federal Funds Sold and Securities Purchased (Annualized) Divided by Average Federal Funds Sold and Securities Purchased

Cost of Funds

Annualized: (Total interest expense - Interest on mortgage indebtedness and obligations under capitalized leases)
Divided by the average of: (Deposits in domestic offices: interest bearing + Deposits in foreign offices: interest bearing + Federal funds purchased and securities sold under agreements to repurchase in domestic offices of the bank and of its Edge and agreement subsidiaries, and in IBF's + Demand notes issued to U.S. Treasury + Trading liabilities + Subordinated notes and debentures

***The average in this ratio is calculated using all available quarters of the current year, plus the prior year end.

Cost of Funds - Fed Funds Rate

[Annualized: (Total interest expense - Interest on mortgage indebtedness and obligations under capitalized leases )
Divided by the average of: (Deposits in domestic offices: interest bearing + Deposits in foreign offices: interest bearing + Federal funds purchased and securities sold under agreements to repurchase in domestic offices of the bank and of its Edge and agreement subsidiaries, and in IBF's + Demand notes issued to U.S. Treasury {RCON:2840} + Trading liabilities + Subordinated notes and debentures + Trading liabilities)] - Less The federal funds rate as of the last reporting date

***The average in this ratio is calculated using all available quarters of the current year, plus the prior year end.

Cost of Deposits

Interest expense on deposits (annualized) Divided by Average (Domestic interest-bearing deposits + Foreign interest-bearing deposits)

Cost of Borrowings

Interest expense on federal funds purchased + Interest on US notes and other borrowed money + Interest on subordinated notes and debentures (annualized)
Divided by Average (Federal funds purchased and securities sold under agreements to repurchase + Demand notes issued to US treasury + Other liabilities for borrowed money + Subordinated notes and debentures)

Yield to Cost Spread

Yield on Average Earning Assets (Tax Adjusted) less Cost of Funds

RatePaid:Fed Fnds Purchased&Secs Sold

Interest Expense on Federal Funds Purchased and Securities Sold (Annualized) Divided by Average Federal Funds Purchased and Securities Sold

Total Overhead Expense as a percent of Total Operating Income less Interest Expense

Total Overhead + Mortgage Indebtedness Divided by Total Interest Income(Tax Adjusted) + Total Noninterest Income - Total Interest expense (excluding interest on mortgage indebtedness + Obligations under capitalized leases )

***This ratio is sometimes referred to as "Efficiency Ratio"

Salaries and Benefits as a percent of Total Operating Income less Interest Expense

Salaries and employee benefits Divided by Total Interest Income(Tax Adjusted) + Total Noninterest Income - Total Interest expense (excluding interest on mortgage indebtedness + Obligations under capitalized leases )

Occupancy Expense as a percent of Total Operating Income less Interest Expense

Expenses of premises and fixed assets + Mortgage indebtedness
Divided by Total Interest Income(Tax Adjusted) + Total Noninterest Income - Total Interest expense (excluding interest on mortgage indebtedness + Obligations under capitalized leases )

Other Expenses as a percent of Total Operating Income less Interest Expense

Other noninterest expense Divided by Total Interest Income(Tax Adjusted) + Total Noninterest Income - Total Interest expense (excluding interest on mortgage indebtedness + Obligations under capitalized leases )

Loan Loss Provision as a percent of Total Operating Income less Interest Expense

Provision for loans and lease losses
Divided by Total Interest Income(Tax Adjusted) + Total Noninterest Income - Total Interest expense (excluding interest on mortgage indebtedness + Obligations under capitalized leases )

Noninterest Income divided by Total Operating Income less Interest Expense

Noninterest Income
Divided by Total Interest Income(Tax Adjusted) + Total Noninterest Income - Total Interest expense (excluding interest on mortgage indebtedness + Obligations under capitalized leases )

Income before Taxes and Extraordinary Items as a percent of Total Operating Income less Interest Expense

Income (loss) before income taxes and extraordinary items and other adjustments
Divided by Total Interest Income(Tax Adjusted) + Total Noninterest Income - Total Interest expense (excluding interest on mortgage indebtedness + Obligations under capitalized leases )

Net Overhead Expense as a percent of Net Interest Margin

Total noninterest expense + Interest on mortgage indebtedness and obligations under capitalized leases - Total noninterest income
Divided by Total interest income - Total interest expense + Interest on mortgage indebtedness and obligations under capitalized leases

Salaries and Benefits as a percent of Overhead Expense

Salaries and employee benefits
Divided by Total noninterest expense + Interest on mortgage indebtedness and obligations under capitalized leases

Occupancy Expense as a percent of Overhead Expense

Expenses of premises and fixed assets + Mortgage indebtedness
Divided by Total noninterest expense + Interest on mortgage indebtedness and obligations under capitalized leases

Other Expenses as a percent of Overhead Expense

Other noninterest expense Divided by Total noninterest expense + Interest on mortgage indebtedness and obligations under capitalized leases

Total Noninterest Income as a percent of Total Noninterest Expense

Total noninterest income Divided by Noninterest expense

Operating Income (excl Provisions and Securities Gain (Loss)) as a percent of Salaries and Employee Benefits

Income (loss) before extraordinary items and other adjustments - Gains (losses) on securities not held in trading accounts + Provision for loan and lease losses + Provision for allocated transfer risk Divided by Salaries and employee benefits

Service Charges on Deposits Accounts as a percent of Salaries and Employee Benefits

Service charges on deposit accounts Divided by Salaries and employee benefits

Salaries and Employee Benefits (Annualized) Per Average Employees

Salaries and employee benefits Divided by Average number of full-time equivalent employees on payroll at end of current period

Operating Income per Average Employee $(000)

Income before taxes and extraordinary items + Provision for loan and lease losses + Provision for allocated transfer risk - Gains (losses) on securities not held in trading accounts
Divided by Average number of full-time equivalent employees on payroll at end of current period

Gains (Losses) on Securities as a percent of Income before Income Taxes, Extraordinary Items and Other Adjustments

Gains (losses) on securities not held in trading accounts Divided by Income (loss) before income taxes and extraordinary items and other adjustments

Effective Tax Rate

Applicable income taxes Divided by income before taxes and extraordinary items

Liquid Assets/Total Liabilities

Cash and balances due from depository institutions + Federal funds sold and securities purchased under agreements to resell + Assets held in trading accounts + Fixed rate debt securities with a remaining maturity of: (Three months or less + Over three months through 12 months) + Floating rate debt securities with a repricing frequency of: (Quarterly or more frequently + Annually or more frequently, but less frequently than quarterly) + Commercial paper
Divided by Total liabilities

Liquid Assets - Large Liabilities/TA

[Cash and balances due from depository institutions + Federal funds sold and securities purchased under agreements to resell + Assets held in trading accounts + Fixed rate debt securities with a remaining maturity of : (Three months or less + Over three months through 12 months) + Floating rate debt securities with a repricing frequency of: (Quarterly or more frequently + Annually or more frequently, but less frequently than quarterly) + Commercial paper] - [Time certificates of deposit of $100,000 or more + Open-account time deposits of $100,000 or more + Deposits in foreign offices, Edge and Agreement subsidiaries, and IBFs + Federal funds purchased and securities sold under agreements to repurchase + Demand notes issued to the US Treasury + Other borrowed money]
Divided by Total assets

Liquid Assets/Purchased Funds

Cash and balances due from depository institutions + Federal funds sold and securities purchased under agreements to resell + Assets held in trading accounts + Fixed rate debt securities with a remaining maturity of : (Three months or less + Over three months through 12 months) + Floating rate debt securities with a reproaching frequency of: (Quarterly or more frequently + Annually or more frequently, but less frequently than quarterly) + Commercial paper
Divided by Deposits held in foreign offices + Federal funds purchased and securities sold under agreements to repurchase + Demand notes issued to US treasury + Other liabilities for borrowed money + Time CDs of $100,000 or more

Liquid Assets/Short Term Liabilities

Noninterest bearing cash & due from depository institutions, plus Interest bearing cash & due from depository institutions, plus Federal funds sold and securities purchased under agreements to resell, plus Trading assets, plus Fixed rate debt securities with a remaining maturity of 3 months or less, plus Fixed rate debt securities with a remaining maturity of 3 to 12 months, plus Floating rate debt securities with a repricing frequency of quarterly or more frequently, plus Floating rate debt securities with a repricing frequency between yearly and quarterly, plus Commercial paper
Divided by Federal funds purchased and securities sold under agreements to resell, plus Demand notes issued to U.S. Treasury, plus Total transaction account deposits, plus Total brokered deposits, plus Trading liabilities, plus Other borrowed money with an original maturity of one year or less

Liquid Assets/Total Assets

Noninterest bearing cash & due from depository institutions, plus Interest bearing cash & due from depository institutions, plus Federal funds sold and securities purchased under agreements to resell, plus Trading assets, plus Fixed rate debt securities with a remaining maturity of 3 months or less, plus Fixed rate debt securities with a remaining maturity of 3 to 12 months, plus Floating rate debt securities with a repricing frequency of quarterly or more frequently, plus Floating rate debt securities with a repricing frequency between yearly and quarterly, plus Commercial paper
Divided by Total assets

Liquidity Ratio

Cash and Due from Depository Institutions + Securities - Pledged Securities + Federal Funds Sold and Securities Purchased + Assets Held in Trading Accounts Divided by Total Liabilities

Short Term Money Market Assets/TA

Cash & due from depository institutions: interest Bearing + Fed funds sold + Securities purchased under agreement to resell + Assets held in trading accounts + Fixed rate debt securities with a remaining maturity of one year or less + Floating rate debt securities with a repricing frequency of annually or more frequently + Commercial paper
Divided by Total assets

Large Liability Dependence Ratio

[Time certificates of deposit of $100,000 or more + Open-account time deposits of $100,000 or more + Deposits in foreign offices, Edge and agreement subsidiaries, and IBFs + Federal funds purchased and securities sold under agreements to repurchase + Demand notes issued to the US Treasury + Other borrowed money] - [Cash and balances due from depository institutions + Federal funds sold and securities purchased under agreements to resell + Assets held in trading accounts + Fixed rate debt securities with a remaining maturity of: (Three months or less + Over three months through twelve months) + Floating rate debt securities with a repricing frequency of: (Quarterly or more frequently + Annually or more frequently, but less frequently than quarterly) + Commercial paper - Revaluation gains on interest rate, foreign exchange rate, and other commodity and equity contracts in domestic and foreign offices]
Divided by Total loans and leases, net of unearned income, allowance and reserve + Fixed rate debt securities with a remaining maturity of: (Over one year through five years + Over five years) + Floating rate debt securities with a repricing frequency of: (Every five years or more frequently but less frequently than annually + Less frequently than every five years)

Total Loans as a percent of Total Deposits

Loans and leases, net of unearned income Divided by Total deposits in domestic offices and foreign offices

Total Loans and Leases, Net of Unearned Income as a percent of Total Deposits less Public Funds

Total loans and leases, net of unearned income
Divided by Total deposits in domestic offices + Total deposits in foreign offices, Edge and Agreement subsidiaries, and IBFs - (Total transaction account deposits of US government + Total nontransaction account deposits of US government + Total transaction account deposits of states and political subdivisions in the US + Total nontransaction account deposits of states and political subdivisions in the US)

Purchased Funds as a percent of Total Assets

[Deposits held in foreign offices + Federal funds purchased and securities sold under agreements to repurchase + Demand notes issued to US treasury + Other liabilities for borrowed money + Time CDs of $100,000 or more]
Divided by Total assets

$100,000+ Time Deposits as a percent of Total Assets

Time certificates of deposit of $100,000 or more + Open-account time deposits of $100,000 or more Divided by Total assets

Net Federal Funds Purchased as a percent of Total Assets

Federal funds purchased and securities sold under agreements to repurchase in domestic offices of the bank and of its Edge and Agreement subsidiaries, and in IBFs - Federal funds sold and securities purchased under agreements to resell in domestic offices of the bank and of its Edge and Agreement subsidiaries, and in IBFs
Divided by Total assets

Core Deposits and Equity Capital as a percent of Total Assets

1Total transaction accounts + Other savings deposits (Passbook) + Total time deposits of less than $100,000 + Money market deposit accounts (MMDAs) + Total Equity Capital
Divided by Total assets

Average Interest-Bearing Assets as a percent of Average Interest-Bearing Liabilities

Average of: Cash and balances due from depository institutions: Interest-bearing balances + Securities + Federal funds sold and securities purchased under agreements to resell in domestic offices of the bank and of its Edge and Agreement subsidiaries, and in IBFs + Total loans and leases, net of unearned income, allowance, and reserve + Assets held in trading accounts
Divided by Average of: Total deposits in domestic offices:interest-bearing + Total deposits in foreign offices, Edge and Agreement subsidiaries, and IBFs:interest-bearing + Fed funds purchased and repurchases + Demand notes issued to US treasury + Other liabilities for borrowed money + Subordinated notes and debentures

Total Earning Assets as a percent of Total Assets

Cash and balances due from depository institutions: Interest-bearing balances + Securities + Federal funds sold and securities purchased under agreements to resell in domestic offices of the bank and of its Edge and Agreement subsidiaries, and in IBFs + Total loans and leases, net of unearned income, allowance, and reserve + Assets held in trading accounts Divided by Total assets

Total Nonearning Assets as a percent of Total Assets

Cash and balances due from depository institutions: Noninterest-bearing balances and currency and coin + Premises and fixed assets (including capitalized leases) + Other real estate owned + Investments in unconsolidated subsidiaries and associated companies + Customers' liability to this bank on acceptances outstanding + Intangible assets + Other assets Divided by Total assets

TotDueUSBanks+NetFedFunds Purch/TL

Federal funds purchased and securities sold under agreements to repurchase in domestic offices of the bank and of its Edge and agreement subsidiaries, and in IBFs - Federal funds sold and securities purchased under agreement to resell in domestic offices of the bank and of its Edge and agreement subsidiaries, and in IBFs + Total nontransaction accounts of commercial banks in the U.S. + Total nontransaction accounts of other depository institutions in the U.S. + Total transaction accounts of commercial banks in the U.S. + Total transaction accounts of other depository institutions in the U.S. Divided by Total loans and leases, net of unearned income

Net Federal Funds Purchased as a percent of Total Domestic Loans, Net of Unearned Income

Federal funds purchased and securities sold under agreements to repurchase in domestic offices of the bank and of its Edge and Agreement subsidiaries, and in IBFs - Federal funds sold and securities purchased under agreements to resell in domestic offices of the bank and of its Edge and Agreement subsidiaries, and in IBFs
Divided by Total loans and leases, net of unearned income

Temporary Investments

Cash and balances due from depository institutions: (Interest-bearing balances) + Federal funds sold and securities purchased under agreements to resell in domestic offices of the bank and of its Edge and Agreement subsidiaries, and in IBFs + Assets held in trading accounts + Fixed rate debt securities with a remaining maturity of: (Three months or less + Over three months through 12 months) + Floating rate debt securities with a repricing frequency of: (Quarterly or more frequently + Annually or more frequently, but less frequently than quarterly)

Fair Value to Amortized Cost of Total Securities

Fair Value of total securities Divided by amortized cost of total securities

Total Securities Held to Maturity:Fair Value less Total Securities Held to Maturity:Amortized Cost, as a percent of Total Assets

Total securities held to maturity:fair value - total securities held to maturity:amortized cost Divided by Total assets.

Real Estate Loans as a percent of Gross Domestic Loans

Domestic loans secured by real estate: Construction and land development plus Secured by Farmland plus Secured by 1-4 family residential properties: (Revolving, open-end loans secured by 1-4 family residential properties and extended under lines of credit plus All other loans secured by 1-4 family residential properties) plus Secured by multi-family (5 or more) residential properties plus Secured by nonfarm nonresidential properties Divided by Domestic loans and leases, gross

Total Interest-Bearing Liabilities as a percent of Total Assets

Total deposits in domestic offices:interest- bearing + Total deposits in foreign offices, Edge and Agreement subsidiaries, and IBFs: interest-bearing + Fed funds purchased and repurchases + Demand notes issued to US treasury + Other liabilities for borrowed money + Subordinated notes and debentures + Trading Liabilities Divided by total assets

Interest-Bearing Deposits as a percent of Total Assets

Total deposits in domestic offices:interest- bearing + Total deposits in foreign offices, Edge and Agreement subsidiaries, and IBFs: interest-bearing
Divided by total assets

NOW and Other Transaction Accounts as a percent of Total Assets

Total transaction accounts - total demand deposits Divided by total assets

Noninterest-Bearing Deposits as a percent of Total Domestic Deposits

Noninterest-bearing deposits in domestic offices Divided by Total deposits in domestic offices

Deposits of Individuals, Partnerships, and Corporations as a percent of Total Deposits

Total transaction accounts of individuals, partnerships, and corporations + Total non- transaction accounts of individuals, partnerships, and corporationsDivided by Total deposits in domestic offices + Total deposits in foreign offices, Edge and Agreement subsidiaries, and IBFs

Gap/TA:3 Month

(Cash and balances due from depository institutions: interest-bearing balances + Federal funds sold and securities purchased under agreement to resell in domestic offices of the bank and of its Edge and agreement subsidiaries, and in IBFs + Fixed rate debt securities with a remaining maturity of three months or less + Floating rate debt securities with a repricing frequency of quarterly or more frequently + Fixed rate loans and leases with a remaining maturity of three months or less + Floating rate loans with a repricing frequency of quarterly or more frequently ) - (Federal funds purchased and securities sold under agreements to repurchase in domestic offices of the bank and of its Edge and agreement subsidiaries, and in IBFs + Fixed rate time deposits of $100,000 or more with a remaining maturity of three months or less + Floating rate time certificates of deposit of $100,000 or more with a repricing frequency of quarterly or more frequently + Savings depositsagreement market deposit accounts (MMDAs) + All NOW accounts + Fixed rate time deposits of less than $100,000 with a remaining maturity of three months or less + Floating rate time certificates of deposit of less than $100,000 with a repricing frequency of quarterly or more frequently) Divided by Total assets

Rate Sensitive Assets/Liab:3 Month

Cash and balances due from depository institutions: interest-bearing balances + Federal funds sold and securities purchased under agreement to resell in domestic offices of the bank and of its Edge and agreement subsidiaries, and in IBFs + Fixed rate debt securities with a remaining maturity of three months or less + Floating rate debt securities with a repricing frequency of quarterly or more frequently + Fixed rate loans and leases with a remaining maturity of three months or less + Floating rate loans with a repricing frequency of quarterly or more frequently Divided by Federal funds purchased and securities sold under agreements to repurchase in domestic offices of the bank and of its Edge and agreement subsidiaries, and in IBFs + Fixed rate time deposits of $100,000 or more with a remaining maturity of three months or less + Floating rate time certificates of deposit of $100,000 or more with a repricing frequency of quarterly or more frequently + Savings deposits: money market deposit accounts (MMDAs) + All NOW accounts + Fixed rate time deposits of less than $100,000 with a remaining maturity of three months or less + Floating rate time certificates of deposit of less than $100,000 with a repricing frequency of quarterly or more frequently

Gap/TA:1 Year

(Cash and balances due from depository institutions: interest-bearing balances + Federal funds sold and securities purchased under agreement to resell in domestic offices of the bank and of its Edge and agreement subsidiaries, and in IBFs + Fixed rate debt securities with a remaining maturity of three months or less + Fixed rate debt securities with a remaining maturity of over three months through 12 months + Floating rate debt securities with a repricing frequency of quarterly or more frequently + Floating rate debt securities with a repricing frequency of annually or more frequently, but less frequently than quarterly + Fixed rate loans and leases with a remaining maturity of three months or less + Fixed rate loans and leases with a remaining maturity of over three months through 12 months + Floating rate loans with a repricing frequency of quarterly or more frequently + Floating rate loans with a repricing frequency of annually or more frequently, but less frequently than quarterly ) - (Federal funds purchased and securities sold under agreements to repurchase in domestic offices of the bank and of its Edge and agreement subsidiaries, and in IBFs + Fixed rate time deposits of $100,000 or more with a remaining maturity of three months or less + Fixed rate time deposits of $100,000 or more with a remaining maturity of over three months through 12 months + Floating rate time certificates of deposit of $100,000 or more with a repricing frequency of quarterly or more frequently + Floating rate time certificates of deposit of $100,000 or more with a repricing frequency of annually or more frequently, but less frequently than quarterly + Savings deposits: money market deposit accounts (MMDAs) + All NOW accounts + Other borrowed money with a remaining maturity of one year or less + Fixed rate time deposits of less than $100,000 with a remaining maturity of three months or less + Fixed rate time deposits of less than $100,000 with a remaining maturity of over three months through 12 months + Floating rate time deposit of less than $100,000 with a remaining maturity of one year or less ) Divided by Total assets

Rate Sensitive Assets/Liab:1 Year

Cash and balances due from depository institutions: interest-bearing balances + Federal funds sold and securities purchased under agreement to resell in domestic offices of the bank and of its Edge and agreement subsidiaries, and in IBFs + Fixed rate debt securities with a remaining maturity of three months or less + Fixed rate debt securities with a remaining maturity of over three months through 12 months + Floating rate debt securities with a repricing frequency of quarterly or more frequently + Floating rate debt securities with a repricing frequency of annually or more frequently, but less frequently than quarterly + Fixed rate loans and leases with a remaining maturity of three months or less + Fixed rate loans and leases with a remaining maturity of over three months through 12 months + Floating rate loans with a repricing frequency of quarterly or more frequently + Floating rate loans with a repricing frequency of annually or more frequently, but less frequently than quarterly
Divided by Federal funds purchased and securities sold under agreements to repurchase in domestic offices of the bank and of its Edge and agreement subsidiaries, and in IBFs + Fixed rate time deposits of $100,000 or more with a remaining maturity of three months or less + Fixed rate time deposits of $100,000 or more with a remaining maturity of over three months through 12 months + Floating rate time certificates of deposit of $100,000 or more with a repricing frequency of quarterly or more frequently + Floating rate time certificates of deposit of $100,000 or more with a repricing frequency of annually or more frequently, but less frequently than quarterly + Savings deposits: money market deposit accounts (MMDAs) + All NOW accounts + Other borrowed money with a remaining maturity of one year or less + Fixed rate time deposits of less than $100,000 with a remaining maturity of three months or less + Fixed rate time deposits of less than $100,000 with a remaining maturity of over three months through 12 months + Floating rate time deposit of less than $100,000 with a repricing frequency of quarterly or more frequently + Floating rate time deposit of less than $100,000 with a repricing frequency of annually or more frequently, but less frequently than quarterly

Reprice:1 Yr Ln & Lse/Tot Ln & Lse

Fixed rate loans and leases with a remaining maturity of:(Three months or less + Over three months through 12 months) + Floating rate loans and leases with a repricing frequency of:(Quarterly or more frequently + Annually or more frequently, but less frequently than quarterly)
Divided by Loans and leases (excluding those in nonaccrual status)

Reprice:1-5 Yr Ln & Lse/Tot Ln & Lse

Fixed rate loans and leases with a remaining maturity of over one year through five years + Floating rate loans and leases with a repricing frequency of every five years or more frequently, but less frequently than annually Divided by Loans and leases (excluding those in nonaccrual status)

Reprice:Over 5Yr Ln & Lse/Tot Ln&Lse

Fixed rate loans and leases with a remaining maturity of over five years + Floating rate loans and leases with a repricing frequency of less frequently than every five years
Divided by Loans and leases (excluding those in nonaccrual status)

Reprice:1 Yr Debt Sec/Tot Debt Sec

Fixed rate debt securities with a remaining maturity of:(Three months or less + Over three months through 12 months) + Floating rate debt securities with a repricing frequency of:(Quarterly or more frequently + Annually or more frequently, but less frequently than quarterly)
Divided by Total debt securities

Reprice:1-5 Yr Debt Sec/Tot Debt Sec

Fixed rate debt securities with a remaining maturity of over one year through five years + Floating rate debt securities with a repricing frequency of every five years or more frequently, but less frequently than annually
Divided by Total debt securities

Reprice:Over 5Yr Debt Sec/TotDebtSec

Fixed rate debt securities with a remaining maturity of over five years + Floating rate debt securities with a repricing frequency of less frequently than every five years
Divided by Total debt securities

Repriceable:3 Month Deposits/TDD

Savings deposits: money market deposit accounts (MMDAs) + All NOW accounts + Fixed rate time deposits of less than $100,000 with a remaining maturity of three months or less + Floating rate time certificates of deposit of less than $100,000 with a repricing frequency of quarterly or more frequently
Divided by Deposits in domestic offices

Repriceable:1 Yr $100,000+ CDs/TDD

Fixed rate time certificates of deposit of $100,000 or more with a remaining maturity of:(Three months or less + Over three months through 12 months) + Floating rate time certificates of deposit of $100,000 or more with a repricing frequency of:(Quarterly or more frequently + Annually or more frequently, but less frequently than quarterly)
Divided by Total deposits in domestic offices

Repriceable:greater than 1 Yr $100,000+ CDs/TDD

Fixed rate time certificates of deposit of $100,000 or more with a remaining maturity of:(Over one year through five years + Over five years) + Floating rate time certificates of deposit of $100,000 or more with a repricing frequency of:(Every five years or more frequently, but less frequently than annually + Less frequently than every five years)
Divided by Total deposits in domestic offices

Repriceable:1 Yr Loans & Leases/TA

Fixed rate loans and leases with a remaining maturity of:(Three months or less + Over three months through 12 months) + Floating rate loans and leases with a repricing frequency of:(Quarterly or more frequently + Annually or more frequently, but less frequently than quarterly) Divided by Total assets

Repriceable:1 Yr Debt Securities/TA

Fixed rate debt securities with a remaining maturity of:(Three months or less + Over three months through 12 months) + Floating rate debt securities with a repricing frequency of:(Quarterly or more frequently + Annually or more frequently, but less frequently than quarterly) Divided by Total assets

Repriceable:1 Yr $100,000+ CDs/TA

Fixed rate time certificates of deposit of $100,000 or more with a remaining maturity of:(Three months or less + Over three months through 12 months) + Floating rate time certificates of deposit of $100,000 or more with a repricing frequency of:(Quarterly or more frequently + Annually or more frequently, but less frequently than quarterly)
Divided by Total assets

Five Year Compound Growth of Total Assets (Last Year End)

Five year annual compound growth in Total assets, for the last five years - Based on latest year end data

The Sheshunoff Rating

for an institution is computed based on all other institutions in the nation, an institution's geographical region, and its asset size peer group. Ratings are computed for banks, S&Ls, holding companies, and credit unions, and they appear at the end of Performance Ratios reports.

Calculation
Different ratios are used to compute ratings for different kinds of institutions. For example, the four ratios used for banks are as follows:

Capital Adequacy: Core Cap-Loss on AFS Securities/Adjusted Total Assets
Asset Quality: Adjusted Nonperforming Loans & OREO/Total Loans & OREO
Earnings: Operating Profit / Average Assets
Liquidity: Liquid Assets / Total Liabilities

Each institution's ratios are weighted using statistically derived betas to arrive at a raw score. For an average institution the approximate weightings, which indicate the relative importance of each ratio used in the new rating system, are as follows:

Raw scores are then placed on an industry representative curve (normal distribution) to arrive at each institution's rating. This process ensures that each institution's rating reflects its true condition. Healthy institutions are not penalized with a low rating simply because other institutions have higher numbers.

Regions

An institution's measure of safety and soundness using specified CAMEL factors, as compared to other banks within its region. Regions are broken down as follows:
Midwest: IL,IN,MI,OH,WV,WI
Southeast: AL,DE,DC,FL,GA,KY,MD,MS,NC,SC,TN,VA
Northcentral: IA,KS,MN,MO,NE,ND,SD
Northeast: CT,ME,MA,NH,NJ,NY,PA,RI,VT
Southwest: AR,LA,NM,OK,TX
West: AK,AZ,CA,CO,HI,ID,MT,NV,OR,UT,WA,WY
Foreign: AS,FM,GU,MH,MP,PW,PR,UM,VI

Bank peer groups

Sheshunoff analysts divide the nation's banks into the following 15 peer groups according to asset size:

Group No. Size
of Total Assets
1 Banks chartered within the last 3 years with assets of less then $50 million
2 $0 to $9 million
3 $10 million to $24 million (not in an MSA)
4 $10 million to $24 million
5 $25 million to $49 million (not in an MSA)
6 $25 million to $49 million
7 $50 million to $99 million (not in an MSA)
8 $50 million to $99 million
9 $100 million to $299 million (not in an MSA)
10 $100 million to $299 million
11 $300 million to $499 million
12 $500 million to $999 million
13 $1 billion to $4.999 billion
14 $5 billion to $9.999 billion
15 $10 billion and over