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Regulatory Capital Categories for Banks and S&Ls

 

Adjusted tangible assets: Average quarterly total assets less disallowed items, including goodwill, servicing assets, deferred tax assets, and other. Further adjustments are made for institutions with financial subsidiaries.

Risk-based capital: The sum of tier-1, tier-2 and tier-3 capital, with deductions for some subsidiaries and international holdings.

Risk-weighted assets: The total of four risk-weighted categories. Cash, U.S. government securities, and other low-risk assets have a 0% weighting. Other securities and loans are carry weightings of 20%, 50% or 100%, depending on guidelines based on issuer type, agency ratings, loan collateral and loan performance.

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Philip W. van Doorn joined TheStreet.com Ratings., Inc., in February 2007. He is the senior analyst responsible for assigning financial strength ratings to banks and savings and loan institutions. He also comments on industry and regulatory trends. Mr. van Doorn has fifteen years experience, having served as a loan operations officer at Riverside National Bank in Fort Pierce, Florida, and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a Bachelor of Science in business administration from Long Island University.

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