Have things improved? They also released the 2019 First Quarter Call Reports of all the insured institutions. The bank company added $9.7 billion of balances and added 94,000 new customers.This might be good news for investors of Ally stock, but it’s not good news for Ally deposit customers since such strong deposit growth puts downward pressure on deposit rates.Here are a few of the noteworthy excerpts from the Just like the banks, credit unions experienced a large decline of net income that was driven by increases in loan-loss provisions.Also, like the banks, there was a large increase in deposits. And the accountability in America gets deleted!
The failure was initially caused by mounting losses on mortgages and a plunging stock price, followed by depositors taking out $16.7 billion in just ten days after Lehman Brothers filed for bankruptcy. It would be more valuable, as you suggest, for Ken to talk about the discrepancies between rating organizations, rather than switching to Weiss as a first step. The deposit insurance system stinks. One concern that I have is that bank ratings on the Deposit Accounts website, are not nearly as stringent and discriminating as Weiss Bank Ratings--I do wish you would consider incorporating Weiss. Clearly, noncurrent loans caused by shutdowns will be much greater on June 30th than March 31st.One effect of the pandemic that the Q1 call reports did start to capture was the increase in loan-loss provisions which negatively impacted the earnings of the financial institutions. I spoke with them just the other day (they called me) and inquired about how they were doing. Again some people don’t know what they don’t know!I noticed CIT Bank's ratng has suddenly dropped to a C+. Many banks and credit unions were not as financially healthy as many believed. Let me offer two specific examples :BankSouth and State Bank of India--which are in your top 10--are rated only "B+" by Weiss Ratings, and BankSouth's rating reflects a recent downgrade.Thank you for your consideration.Competition in the marketplace! We use these reports to derive our financial health grades for each institution. The parent company, CIT Group, declared its regular quarterly dividend to shareholders a few days ago, so they can't be hurting that bad. We have finished importing this data, and all of the health grades for banks and credit unions have been updated to reflect the December 31, 2018 reports.You can view the latest health ratings of your bank or credit union in our Bank...excellent information and keep up the great work KenKen: First of all, thank you for providing such a comprehensive summary and analysis. Over $188 billion in deposits were seized by the FDIC, which sold all the company’s assets and liabilities to JPMorgan Chase for a mere $1.9 billion. This figure is approaching the 100% threshold, which is considered very risky. Another example is Popular Bank. The report also showed very strong deposit growth. They do, however, publish the raw financial numbers for each institution every quarter. However, it’s only a very early look. You can look to see the amount of total deposits that a bank has and look to see whether they have been increasing over time. We use these reports to derive our financial health grades for each institution. As described above, noncurrent loans are an important component of the Texas ratio, and noncurrent loans only include loans that are more than 90 days past due. PS: That might even be where my handle here came from... maybe. In normal times, the FDIC and NCUA release the Q1 call reports in late May. It shouldn't be up to the depositor to navigate the arcane rules of deposit insurance to try to determine if they are covered and be exposed to potential disqualification for things they have no control over or way to know.Yes...what’s new, ie what are you going to do? It's all about Q2.Copyright (2020) LendingTree, LLC | All rights reserved. We use these reports to derive our financial health grades for each institution.
I sense that Weiss is overly harsh and perhaps a bit pessimistic.
Bank Health in the COVID-19 Pandemic - Updates from Q1 Data
Again some people don’t know what they don’t know!Where did those complaining about "predatory lenders" look? It says simply "The Weiss Ratings are calculated based on a complex analysis of hundreds of factors that are synthesized into five indexes: capitalization, asset quality, profitability, liquidity and stability. You can also look at the trend in this Texas Ratio as an additional factor to tell if the bank's financial health is heading in the right direction.When people put money in a bank, it is an indicator of confidence.