Who Uses IDC’s Rankings and Why?

IDC Financial Publishing, Inc. (IDC) is the nation’s prime source of financial institution quality rankings. Individual institutions rely on IDC’s data when evaluating their institution’s safety and soundness, as well as, performance in relation to their peers. In addition, IDC’s ranking system can assist management in setting goals to improve quality through its supplemental peer group listings.

Fannie Mae, Freddie Mac, Ginnie Mae, the Federal Reserve and the Federal Home Loan Banks, along with many states and municipalities, as well as the vast majority of brokers issuing or trading bank certificates of deposit, or firms assisting financial institutions raising deposits, use IDC’s ranks to assess potential financial relationships. Private companies, individual investors, and insurance companies, to name a few, also rely on IDC’s timely information.

IDC, as a financial institution rating service, provides a thorough analysis of financial ratios with a one-number summary rating (on a scale of 1 to 300, with 300 the top rank attainable) computed for each financial institution in the country that reports to agencies of the Federal government. This summary rank allows simple and direct comparison of any bank, savings institution, or credit union with any (or all) others, in terms of financial safety and soundness. The IDC rank is important for at-a-glance assessment. More importantly, we give you the ability to determine why things are going well...or not so well. And that information is contained in each of the ratios that comprise the overall ranking. The ratios help explain the financial institution's strength and weaknesses and their impact on the summary rating.

Since 1989, bank and savings institution failures, excluding failed institutions due to fraud, small failed banks under $5 million assets, and bank holding company failures, totaled 1,410 institutions. Of this total, 99% were ranked below "75" (Lowest Ratios) in the quarter prior to failure, a strong indication of the reliability of IDC's rating process.

Bank, Savings Institution, and Credit Union ratings and supporting financial ratios can be analyzed in a data base, in a management review for a single institution, in peer groups, by region of the country, or through history of a financial institution (see Products on our website at www.idcfp.com).

IDC also offers specialized rating services to subscribers who have access to IDC’s qualified analysts when questions arise concerning ratings or methodology. The subscriber may know of unique circumstances for an institution that are not reflected in the standard regulatory reporting, circumstances which could change the methodology used for the financial institution in that particular situation.

IDC is going ONLINE! IDC Financial Publishing, Inc. is excited about the launch of its online platform for presenting the IDC Rank of Financial Ratios and the CAMEL Analysis. Over 13,000 institutions will be readily available with rank, financial ratios, and commentary… all with a CAMEL Analysis.