Introduction to Problem Banks

Internal Use Only

Questions to ask Breakout group exercise (20 minutes) In your group: 1. Select a spokesperson 2. Discuss the red flag

3. Come up with questions (at least 3) you would ask management or areas you want to follow-up on. 4. Your group will present their questions to the larger group. 5. Email your list of questions to khoyle@csbs.org.

Internal Use Only

Questions to ask Breakout group exercise Red flag is: • Groups 1 & 4 : Increase in borrowings with the FHLB • Groups 2 & 5: Increase in the level of AOCI (negative) in the bank’s AFS securities. • Groups 3 & 6: Increase in concentration of depositors in one market sector.