Current through Register Vol. 35, No. 18, September 24, 2024
A. "Council" shall
mean the state investment council.
B. "State funds" means funds of the severance
tax permanent fund deposited pursuant to Sections
7-27-5
and
7-27-5.2 [repealed] NMSA
1978 (and known as the differential rate investments).
C. "Reinvestment of certificate of deposit"
means the replacement upon maturity, of an existing deposit at the discretion
of the investment officer acting in accordance with these regulations. For the
purposes of these regulations, this will be considered the same as any other
type of deposit except that the institution retains physical possession of the
state funds rather than the funds being transferred from the state to the
institution.
D. FOR BANKS
(1) "CLASS A" means a bank which meets all of
the following financial conditions:
(a) a
primary capital to asset ratio (as defined by the FDIC) of 6 percent or
greater.
(b) a net income (current
quarter plus previous three quarters after taxes) to average asset ratio of .61
percent or greater;
(c) a ratio of
non-performing loans (defined as loans which are at least 90 days past due) to
primary capital ratio of 34.9 percent or less.
(d) Failure of a bank to meet any one of
these ratios automatically results in reclassification into the next lower
financial class.
(2)
"CLASS B" means a bank which meets all of the following financial conditions:
(a) a primary capital to asset ratio (as
defined by the FDIC) of at least 5 percent.
(b) a net income (current quarter plus
previous three quarters after taxes) to average asset ratio of at least .51
percent;
(c) a ratio of
non-performing loans (defined as loans which are lt least 90 days past due) to
the bank's primary capital of no more than 49.9 percent.
(d) Failure of a bank to meet any one of
these ratios automatically results in reclassification into the next lower
financial class.
(3)
"CLASS C" means a bank with any one of the following financial conditions:
(a) a primary capital to asset ratio (as
defined by the FDIC) of less than 5 percent.
(b) a net income (current quarter plus
previous three quarters after taxes) to average asset ratio less than .51
percent;
(c) a ratio of
non-performing loans (defined as loans which are at least 90 days past due) to
the bank's primary capital of greater than 49.9 percent.
(4) "CLASS D" means a bank with any two of
the following financial conditions:
(a) a
primary capital to asset ratio (as defined by the FDIC) of less than 2 1/2
percent.
(b) a net income (current
quarter plus previous three quarters after taxes) to average asset ratio of
less than .10 percent;
(c) a ratio
of non-performing loans to the bank's primary capital of greater than 67
percent, two quarters in a row during the past 12 months.
E. FOR SAVINGS AND LOAN
ASSOCIATIONS:
(1) "CLASS A" means a savings
and loan association which meets all of the following conditions:
(a) a regulatory net worth to average asset
ratio (as contained in the FHLB quarterly report) of 3 percent or
greater;
(b) a ratio of the
institutions' four quarter net income (before or after taxes, whichever is
greater, and determined by computing all four quarters on a consistent basis of
either "before taxes" or "after taxes") to its total average assets of .30
percent or greater.
(c) Failure of
a savings and loan association to meet any one of these financial conditions
automatically results in reclassification into the next lower financial
class.
(2) "CLASS B"
means a savings and loan association with all of the following conditions:
(a) a regulatory net worth to average asset
ratio (as contained in the FHLB quarterly report) of at least 2
percent;
(b) a ratio of the
institutions' four quarter net income (before or after taxes, whichever is
greater, and determined by computing all four quarters on a consistent basis of
either "before taxes" or "after taxes") to its total average assets of at least
.2 percent.
(c) Failure of a
savings and loan association to meet any one of these financial conditions
automatically results in reclassification into the next lower financial
class.
(3) "CLASS C"
means a savings and loan association with any one or more of the following
financial conditions:
(a) a regulatory net
worth to average asset ratio (as contained in the FHLB quarterly report) of
less than 2 percent;
(b) a ratio of
the institutions' four quarter net income (before or after taxes, whichever is
greater, and determined by computing all four quarters on a consistent basis of
either "before taxes" or "after taxes") to its total average assets of less
than .20 percent.
(c) Failure of a
savings and loan association to meet any one of these financial conditions
automatically results in reclassification into the next lower financial
class.
(4) "CLASS D"
means a savings and loan association with both of the following financial
conditions:
(a) a regulatory net worth to
average asset ratio (as contained in the FHLB quarterly report) of less than 1
percent;
(b) A ratio of the
institutions' four quarter net income (before or after taxes, whichever is
greater, and determined by computing all four quarters on a consistent basis of
either "before taxes" or "after taxes") to its total average assets of less
than .10 percent.