Brokered CDs Less Than $250,000 Continue to Grow to Record Levels

For years, brokers, investment advisors, consultants, and others, relied on the Depository Trust and Clearing Corporation (DTCC) to provide monthly balances of qualifying brokered CDs. Since 2014, however, the level of brokered CDs under $250,000 computed by IDC Financial Publishing (IDCFP) as part of brokered deposits, continues to outpace the…

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Our Remarkable Record Predicting Bank Failure and Recovery

Updated for 1st Quarter 2020 ranks IDCFP’s Record in History IDC Financial Publishing’s (IDCFP’s) CAMEL safety ratings of banks, savings institutions, credit unions range from 300 (the top grade attainable) to 1 (the lowest). From the early 1990’s, through today, institutions using our CAMEL ranks determined that ranks less than 125 were…

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True Bank Cash Flow Profitability Versus Bank Estimated Stockholder ROE

Banks were required by accounting boards to increase loan loss reserves in the beginning of 2020. The advent of Covid-19 allowed the banks to estimate the losses and, therefore, additionally increase the loan loss reserve to compensate for the estimated future losses. While IDC Financial Publishing (IDCFP) reports “stockholders return on…

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ROE vs. COE is the Best Indicator of Bank Stock Value

ROE vs. COE is the Best Indicator of Bank Stock Value IDC Financial Publishing (IDCFP) measures relative profitability of bank holding companies by comparing the IDCFP return on tangible equity (NOPAT ROE) to our definition of the cost of equity (COE). Margin between ROE and COE (included in the “M” in…

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