Surveillance

Data

Brean is using the publicly available data from FFEIC ¹.   We have chosen to only analyze those institutions which are in financial institution filing type 041 and 051.  Our data set consists of 8,606 financial institutions.  The data starts on March 2007 and is updated quarterly with the most recent update bringing us to December 2017.

Surveillance Construction

Brean has created a surveillance dashboard with the ability for users to review financials institution data aggregated at the national, BEA regional, state or individual institution level. By aggregating these records quarterly over 12 years, Brean has been able to track the chargeoff rates, changes in balances and loan growth, and macro-economic indicators for users to be able to track their own institution’s performance as well as performance of other similarly sized institutions within their state and region.

Surveillance Calculation

Brean’s surveillance dashboards are created based on calculating the quarterly chargeoffs from the FFIEC RC-C reporting by transforming the Year-To-Date numbers for each quarter into each quarter’s chargeoffs. The Annual chargeoffs rates are calculated by adding all four quarters’ chargeoffs and dividing by the average balance for each sector.

Ranks by Chargeoffs

The Avg Loan and Lease Balances (000’s) is calculated by taking the average of the total loan and lease balances for each bank over most recent 4 quarters.

The chargeoff annual rates are calculated by taking the sum of all chargeoffs per sector over the most recent 4 quarters, and dividing by the average each sector’s quarterly balance.

Ranks by Growth

The Total Loan and Lease Balances (000’s) is the most recently reported quarterly total balances for all loans and leases per bank.

The growth rates are calculated by taking the percentage difference between each sector’s reported balance between the most recently reported quarter and the same quarter in the previous year.

Residential Mortgage First Lien Chargeoffs by Region

The Regions were created by combining all of the banks within state based on the BEA’s economic regions.

The residential mortgage first lien chargeoff rate is calculated by summing the total Residential First Lien chargeoffs from every bank within the region, divided by the total Residential First Lien mortgage balances within the region as of that quarter. This quarterly chargeoff percentage is then annualized. The chart shows the moving average of the annualized chargeoff rate, taking the average of the current value and 3 previous quarters.

Residential Mortgage First Lien Chargeoffs by State

The scatterplot of residential mortgage first lien chargeoffs by state take the annual rate of chargeoffs by summing the quarterly chargeoffs from financial institutions within the state divided by the total residential mortgage first lien balances, converted to an annual rate. The size of the points on the plot correspond with the size of total residential first lien balances.

Commercial & Industrial Chargeoffs by Region

The Regions were created by combining all of the banks within state based on the BEA’s economic regions.

The commercial & industrial chargeoff rate is calculated by summing the total commercial & industrial chargeoffs from every bank within the region, divided by the total commercial & industrial balances within the region as of that quarter. This quarterly chargeoff percentage is then annualized. The chart shows the moving average of the annualized chargeoff rate, taking the average of the current value and 3 previous quarters.

Commercial Real Estate Chargeoffs by Region

The Regions were created by combining all of the banks within state based on the BEA’s economic regions.

The commercial real estate chargeoff rate is calculated by summing the total commercial real estate chargeoffs from every bank within the region, divided by the total commercial real estate balances within the region as of that quarter. This quarterly chargeoff percentage is then annualized. The chart shows the moving average of the annualized chargeoff rate, taking the average of the current value and 3 previous quarters.

Home Prices Dashboard

The home price indices are based on the FHFA’s purchase-only seasonally adjusted state home price indices. The chart shows the change in home prices, indexed to the start date choose by the user. The default start date is 3/31/2007 and shows the extent of home price declines for each state within the chosen regions.

Unemployment Rate Dashboard

The unemployment rates are from the Bureau of Labor Statistic’s seasonally adjusted U3 unemplyoment rate for each state. The chart shows the unemployment rate as reported based on start and end dates chosen by the user. The default start date is 3/31/2007.

GDP Dashboard

The real GDP indices are based on the BEA’s quarterly seasonally adjusted GDP indices reported for each state. The chart shows the change in real GDP, indexed to the start date choose by the user. The default start date is 3/31/2007 and shows the extent of GDP declines for each state within the chosen regions.