IDC's rating methodology and track record are the reasons IDC is considered the nation’s prime source of financial institutions quality rankings. Users of IDC’s ratings have witnessed a superior degree of success in predicting bank failure.
Non-recurring or unusual circumstances can affect an institutions rating. Financial institutions or other…
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Even institutions with long track records of good management and growing net worth can very quickly reverse direction, and spin out into a value-destroying mode of operation...especially during times of economic stress. And too often, much damage is done before management recognizes that it has a problem, is able to…
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The Traditional ROE Equation
The traditional ROE equation simply divides net income by average equity capital. The stockholder ROE, as a bottom-line measure of profitability, fails to reflect the true nature of asset quality in the ROE equation. Institutions with loan loss reserves in excess of 10% of equity capital overstate…
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