Page 9 Volume 8, Issue 1 FDIC site offers useful budgeting tool


Call report data on Web page can be converted to Excel


The Statistics on De-


pository Institutions ap- plication on the FDIC Web site can be used as a simple – but useful – budgeting tool using a bank’s call report data.


Hitting the Links


Here’s how. First, go to the Federal


Deposit Insurance Cor- poration’s home page at: http://www.fdic.gov/


Once there, click on the link to Industry Analysis.


CONWAY Continued from Page 8


of increasing interest rates are among several vari- ables that worry Conway when he assesses the commercial real estate sector.


Interest rates will be pressured upward, Con- way points out, when the $3.2 trillion in commercial real estate debt requiring refinancing is added to the $10 trillion in other debt (corporate, state and municipal bonds) coming due in 2013-2015 and $80 trillion in unfunded enti- tlement liabilities. “What do you think that spells for interest rates and these low debt-


FDIC—Statistics on Depository Institutions Report


1 Number of institutions reporting Assets and Liabilities


2 Total employees (full-time equivalent) 3 Total assets


4 Cash and due from depository institutions 5 Interest-bearing balances 6 Securities


7 Federal funds sold & reverse repurchase Agreements


8 Net loans and leases 9 Loan loss allowance


10 Trading account assets


11 Bank premises and fixed assets 12 Other real estate owned


13 Goodwill and other intangibles 14 All other assets


Next, click on the link to Bank Data & Statistics. On this page, you will find a link to Statistics on Deposi- tory Institutions (SDI). When you click into SDI,


you will find a page with information on how to use the application, including a link to a tutorial. For now,


service coverages that you have right now?” Conway asked. “If interest rate risk is not on your radar screen, it needs to get there, it really does, because these debt-service coverage ra- tios – if we see a 4, 5 or 6 percent 10-year Treasury – aren’t going to look so great.” Other factors that con- cern him include:


 The high delinquency


rate in the $640 billion commercial real estate portfolio held by commer- cial mortgage-backed secu- rities. “That’s a dam about ready to blow,” Conway explains. “And when they start dumping assets, you need to understand where


All Institutions—State = AR All Institutions—State = AR 12/31/2009 Total (Sum)


$ in 000’s 134


17,485


55,487,217 3,375,069 2,148,560 10,006,904 735,044


36,225,399 706,936 6,598


1,594,511 510,468


1,211,243 1,821,981


however, click on Enter SDI. On the next page, you


can create up to four re- ports. In this budgeting example, since only two reports are needed – for the most recent two years ending December 31 – ad- just the “Select the number


they’re concentrated be- cause they can affect values more or less in your state compared to somewhere else.”


 An increase in ex-


penses to operate commer- cial real estate at a time when rents are flat or de- clining, which is a dynamic that reduces both real es- tate values and loan-loss reserve coverage.


 Divergent conditions


between markets, or geo- graphic “bifurcation,” which Conway says can result in low capitalization rates and new construction that are not warranted in certain areas.


 Developing problems March 31, 2011


12/31/2010 $ in 000’s


Total (Sum) 130


18,069


58,232,299 3,700,374 2,689,062


36,125,387 758,958 6,190


1,615,590 793,467


1,238,590 2,264,688


of Columns” drop-down window from 4 to 2. Then, at the drop-down


window on the left that says “Select One,” choose Standard Peer Group. A single institution or custom peer group also can be se-


See HITTING, Page 10


with state and municipal revenue generation, debt and unfunded pension liabilities – “a crisis yet to play out,” according to Conway. This includes retirement systems having to liquidate their invest- ments in commercial real estate to fund pension obligations.  Justification of de-


creasing capitalization rates. Explains Conway: “Cap rates are coming down and it makes sense why they’re coming down. Equity is cheaper and that can allow debt to go higher.” But bankers must be able to success- fully explain this to regu- lators, Conway adds.


Difference % change 2,745,082


325,305 540,502


11,611,923 1,605,019 876,090


141,046 -100,012 -0.28 4.95


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