DataPalooza 2022

Internal Use Only

Target Variables What are we attempting to predict?

1. Exception Score • When a ratio’s value breaches a specified threshold, an exception is counted

2. Adjusted Texas Ratio •

Numerator: Non-Performing Assets + Loans 90 Days Past Due • Denominator: Total Equity Capital + Loan Loss Reserves – Goodwill – Other Intangible Assets

Internal Use Only

Source Data

• Call report data • State-level unemployment data • Economic data from Moody’s Analytics • Mortgage

• Delinquency • Bankruptcy • Bank ETF data