Each quarter we provide, free of charge, the “Benchmark Ratios & Quantitative Measures Report”. This report is based largely on the OCC’s “Canary Report” first introduced back in September 2000.
While all of the OCC’s canary ratios can be calculated using public data for any bank, the regulatory preference or performance benchmark is somewhat less accessible. The preferences or benchmarks are available to any national bank via the OCC’s BankNet website. All others have to do a bit of searching to find the preferences.
It appears that as of June 2013 the OCC has changed or updated many of the benchmarks. We were able to obtain this document from the public portion of the OCC’s website:
Mutual Savings Association Advisory Committee Meeting | June 17, 2013 | OCC Supervisory Tools
Starting on page 20 there is an outline of the Canary System Enhancements. The changes include adjustments to eight of the ratios that we include on our report. Here is a summary of the changes:
|Ratio||Prior Preference||New Preference|
|Loan Growth||below 20%||below 10%|
|Loans to Equity||below 8x||below 6x|
|Loans to Deposits||below 80%||below 75%|
|Net ST Liab to Total Assets||below 20%||below 15%|
|On-Hand Liquidity to Total Liab.||above 8%||above 15%|
|Interest Rate Risk|
|Long-term Assets to Total Assets||below 25%||below 45%|
|Non-Mat Deposits to LT-Assets||above 140%||above 130%|
|Residential RE to Total Assets||below 25%||below 40%|