Bank Analysis School - September 2023

Internal Use Only

Falling Below Well Capitalized is Bad! Exam cycle frequency increases (6 months).

FDIC assessment increases.

Pending applications will likely be denied.

Use of brokered deposits is restricted.

Asset growth, dividends, and management fees paid to any person controlling the bank may be restricted.

Internal Use Only

Not Meeting the Conservation Buffer is Bad! Minimum Capital + Conservation Buffer of… Maximum Payout

≥ 2.500 > 1.875 > 1.250 > 0.625 ≤ 0.625

100%

60% 40% 20%

0%

Minimum capital + full conservation buffer is 50 basis points higher than well capitalized thresholds. Maximum payout ratio applies to distributions (e.g. dividends) and discretionary bonus payments to executive officers