Washington State Department of Financial Institutions has listed on their website “IDC has a remarkable track record of identifying deteriorating or improving performance months, and sometimes years, before it becomes apparent to other ranking companies.” From 1990 to 2018, there were 1,423 failures of banks. Of these, 89% (1,272 banks)…
The Growth of Brokered CDs The total value of brokered CDs issued by a financial institution grew exponentially from an average of $44 million in 1997 to $228 million in the 1st quarter of 2018. This growth was due to an increase in insurance premiums, bank mergers, and strong growth in…
While earnings and capital are still the primary metric used to judge bank performance and measure the attractiveness of a bank’s stock price, a growing wave of investors focus on cash. Cash levels help reveal the financial strength and resources of a bank, while cash flow indicates the generation of…
IDC Financial Publishing, Inc. (IDCFP) uses the acronym CAMEL and its component financial ratios to evaluate the safety and soundness of commercial banks and savings institutions. This article explains how IDCFP uses liquidity as a component of its CAMEL ranking system and why it is valuable and important to monitor. Liquidity…
IDC Financial Publishing, Inc. (IDCFP) uses the acronym CAMEL and its component financial ratios to evaluate the safety and soundness of commercial banks and savings institutions. This article explains how IDCFP uses “E” earnings returns as a component of its CAMEL ranking system and why it is valuable and important…
