IDC Financial Publishing, Inc. has been rating the safety and soundness of banks, savings institutions, and credit unions since 1985. Every quarter, IDC calculates a one-number rank for over 11,000 financial institutions, using our unique "CAMEL" analysis of 24 key financial ratios. Our bank safety ratings range from 1 (the lowest) to 300 (the highest) and fall into one of six categories: Superior, Excellent, Average, Below Average, Lowest Ratios, and Rank of One.
IDC's methodology for ranking financial institutions for safety is an open platform, allowing banks, savings institutions, credit unions, and any client to understand financial ratios and rank for a specific institution. Our staff is available to clients, allowing them to question ranks or specific calculations used in the rating process. Our analysis is strictly based on the financial information reported by each institution to agencies of the federal government.
John E. Rickmeier, CFA, President and Editor-in-Chief of IDC, developed a unique method of evaluating financial institutions based on the elements of CAMEL: Capital requirements, Adequacy of capital, Margins, Earnings returns, and Liquidity. These are the foundation of financial ratios that measure each institution.
IDC's Track Record as a Bank Rating Agency
Since 1989, bank and savings institution failures, (excluding failed institutions due to fraud, and small banks under $5 million in total assets) and bank holding company failures totaled over 1,400 financial institutions. Of these, 99% were ranked less than 75 by IDC up to 5 months prior to FDIC failure. Additionally, 89% were ranked less than 125 (below average) up to 17 months prior to failure and 73% were ranked less than 125 up to 29 months prior to failure. This track record provided by IDC's bank rating methodology has made us the standard in ranking the safety and soundness of financial institutions. Using our historical records of bank and savings institution failures, IDC has also constructed a probability of failure for each level of rank from 1 (potential failure) to 300 (most secure).
IDC’s online portal provides an at-a-glance summary rank and key financial ratios for a specific bank, savings institution, and/or credit union. Users can create an institution watch list, and search by CUSIPTM number, location, name or institution type.
Our database is also available in an Excel spreadsheet format for banks, savings institutions and credit unions.
Management reviews and peer group reports can also be provided for a specific financial institution.