The set of definitions below are provided to clarify some of the technical terms appeared on this report. Some definitions have been modified to better fit the content scope of the report.
If you have any suggestions for additional terms to be added to the list, please email us at info(at)moneyeconomics(dot)com.
Total Assets: The sum of all assets owned by the institution including cash, loans, securities, bank premises and other assets. This total does not include off-balance-sheet accounts.
Net Loans & Leases: Total loans and lease financing receivables minus unearned income and loan loss allowances.
All Real Estate Loans: Loans secured primarily by real estate, whether originated by the bank or purchased.
Farm Loans: Loans to finance agricultural production and other loans to farmers. Excludes savings institutions filing a Thrift Financial Report.
Commercial & Industrial Loans: Commercial and industrial loans. Excludes all loans secured by real estate, loans to individuals, loans to depository institutions and foreign governments, loans to states and political subdivisions and lease financing receivables.
Loans to Individuals: Loans to individuals for household, family, and other personal expenditures including outstanding credit card balances and other secured and unsecured consumer loans.
Loan Loss Allowance: Each bank must maintain an allowance (reserve) for loan and lease losses that is adequate to absorb estimated credit losses associated with its loan and lease portfolio (which also includes off-balance-sheet credit instruments).
Cash & Balances Due from Depository Institutions: Total cash and balances due from depository institutions including both interest-bearing and noninterest-bearing balances.
Total securities: Total investment securities (excludes securities held in trading accounts). The full implementation of FASB 115 became effective as of January 1, 1994. Beginning on that date, a portion of banks' securities portfolios are reported based upon fair (market) values; previously, all securities not held in trading accounts were reported at either amortized cost or the lower of cost or market. A negative total securities amount indicates a TFR Reporter with assets held in trading accounts that exceed total securities.
Federal Funds Sold & Reverse Repurchase: Total federal funds sold and securities purchased under agreements to resell in domestic offices. Includes only federal Funds sold for TRF Reporters before March 1998.
Trading Account Assets: Securities and other assets acquired with the intent to resell in order to profit from short-term price movements. Effective January 1, 1994, this item includes revaluation gains. This item is included in securities for TFR Reporters.
Bank Premises and Fixed Assets: Bank premises, furniture and fixtures, equipment and other assets representing bank premises (including capitalized leases) owned by the institution.
Other Real Estate Owned: Includes direct and indirect investments in real estate. The amount is reflected net of valuation allowances. For Thrift Financial Reporters, the valuation allowances include allowances for other repossessed assets.
Goodwill & Other Intangibles: Intangible assets include goodwill, mortgage servicing rights, purchased credit card relationships and other identifiable intangible assets.
All other assets: All other assets include investments in unconsolidated subsidiaries, customers' liability on acceptances outstanding, income earned not collected on loans, net deferred tax assets, excess residential mortgage servicing fees receivable and other assets.
Total Liabilities: Deposits and other borrowings, subordinated notes and debentures, limited-life preferred stock and related surplus, trading account liabilities and mortgage indebtedness.
Net income: Net interest income plus total noninterest income plus realized gains (losses) on securities and extraordinary items, less total noninterest expense, loan loss provisions and income taxes.
Metric: A measurement (quantifiable) of the bank's finance.
Key Performance Indicator: A member of a select set of metrics that serve as key indicators of the bank's performance.
Normalized Net income: This is defined by (Net Income)/(Assets) for the YTD or quarter as specified. This KPI neutralizes effect of the bank's size, so a small community bank can be compared to a much larger national bank on the same scale.
Net Income Rating: A directional univariate rating of the bank's performance based on its quarterly normalized net income.
Delinquent Asset Rating: A directional univariate rating of the bank's performance based on its delinquent asset portfolio.
Asset:Liability Rating: A directional univariate rating of the bank's performance based on its asset:liability ratio.
Real Estate Asset Rating: A directional univariate rating of the bank's performance based on its real estate loan portfolio.
Bankability Composite Rating: A KPI-based multivariate rating of the bank's financial status. This is generated using the bank's Bankability Composite Score.
Bankability Composite Score: A numerical representation of the bank's financial status, using a multivariate KPI approach. This can assume any value on the real number line. Please refer to the Official Bankability Composite Score Thread for additional information.