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BOK Financial in Tulsa, Okla., and Webster Financial in Waterbury, Conn., each reported that its Tier 1 common equity ratio would remain above regulators' minimum guideline, as regional banks continue to disclose Dodd-Frank Act stress-test results.
June 17 -
Six regional banks have reported their stress-test results under Dodd-Frank for the first time, projecting Tier 1 common equity ratios ranging from 8.04% to 11.4% after an economic shock. However, several also projected multimillion-dollar losses during the stressful period.
June 16 -
Banks with assets totaling between $10 billion and $50 billion have begun publishing the results of their Dodd-Frank Act mandated stress tests this week and will continue to do so through the end of the month, providing a new window into the workings of regional institutions.
June 16 -
New York Community Bancorp in Westbury reported higher quarterly profit, though it continued to sell loans to stay below $50 billion in assets.
April 29 -
New York Community Bancorp CEO Joseph Ficalora continues to look for a transformative acquisition to cross $50 billion in assets -- even if it invites extra regulatory scrutiny.
January 13 -
No bank has fully disclosed what it spends on the Federal Reserve's Comprehensive Capital Analysis and Review, in part because the figure is hard to isolate. It's a key piece of information missing in the debate over banks' regulatory burden.
May 18
New York Community Bancorp's executives have long said that it is relatively safe for a bank its size, and the results of its company-run stress test appear to back up that claim.
The Westbury, N.Y., thrift on Wednesday released the results of its Dodd-Frank Act Stress Test, or DFAST exam, as several dozen other regional banks must also do by June 30. New York Community's results showed it would clear regulatory capital hurdles fairly easily under the most severe economic shock it forecast, involving economic contraction on the scale of the last financial crisis.
The $48.3 billion-asset company said its Tier 1 common equity ratio would be 8.88% under this scenario, compared with a regulatory minimum of 5%, at the end of 2016.It would earn a profit of more than $660 million and continue paying out a dividend over the nine-quarter period specified in the test, it said.
New York Community is very close to the $50 billion-asset threshold that would subject it to the Comprehensive Capital Analysis and Review exam, a much more extensive stress test run by the
Federal Reserve. For nearly a year the company has been
Chief Executive Joseph Ficalora has said he
Under the toughest stress model it ran, New York Community said it would lose $304 million on its loan-and-lease portfolio and have to take a provision of $573 million over the nine-quarter projection horizon.
First Republic Bank in San Francisco, another lender on the verge of the enhanced stress-testing process, also said this week that it would
Meanwhile, reports from other banks continue to dribble in.
The $16.3 billion-asset F.N.B. in Pittsburgh said that its Tier 1 common equity ratio would fall to 8.37% from 9.6% over the nine-quarter period ending in the fourth quarter of 2016. F.N.B. would report cumulative net income of $30.1 million over the period.
"These results validate the company's current capital management strategies and management's approach to operating with a low-risk balance sheet," F.N.B. said in a news release.
As part of its stress testing, F.N.B. directed staff members to challenge assumptions or other projections in the tests.
"Challenges are designed to foster candid, informed, and effective discussion regarding projection methodologies and results," F.N.B. said its
This is the first year that banks are required to release the results of the DFAST exam, which is mandatory for banks with assets of $10 billion to $50 billion. Banks cannot fail the exam, but it can have implications for capital planning.
Andy Peters contributed to this article
