Table 1. Explanatory Variables and Expected Signs for Predicting Nonfailure Versus Failure States |
Variable |
Sign |
Capital |
Tangible Equity Capital |
+ |
Capital Injections: |
From BHC |
+ |
Outside |
+ |
Asset Quality |
Past-Due Loans (30 - 89 days) |
- |
Past-Due Loans (90+ days) |
- |
Nonaccrual Loans and Leases |
- |
Other Real Estate Owned |
- |
Allowance for Loan Loss |
+ |
Management |
Efficiency Ratio |
- |
Earnings |
Total Interest Income |
+ |
Total Noninterest income |
+ |
Total Interest Expense |
- |
Loan-Loss Provision |
- |
Loan Charge-offs |
- |
Expenses on Premises |
- |
Salaries |
- |
Other noninterest expense |
- |
Liquidity |
Volatile Liabilities |
- |
Loans + Securities > Five Years |
+ |