Friday, May 8, 2009
Failure Friday Fun
Please click on tables to expand.
Westsound Bank was the only one closed today. It was at the top of the Bad Banks list. How do you get to the top of the Bad Banks list?
Net Bad Loans Ratio
bad loans = assets at least 30 days delinquent + non-accrual assets
ratio = (bad loans - bad loans guaranteed by Federal Gov't) / (loan loss allowance + Tier 1 capital)
Net Non-Accrual Ratio
ratio = (non-accrual assets - non-accrual assets guaranteed by Federal Gov't) / (loan loss allowance + Tier 1 capital)
I modified the last column of the failure list:
ratio = (total deposits - FDIC loss) / total assets