Hoosier Banker 43 model, the economic metrics forecast is adjusted to simulate the different types of recoveries, resulting in different estimated loss rates. Depending on the relationship between your institution’s historical loss rates and those of Indiana, you can also add a confidence interval to capture the range of volatility historically seen within your portfolio. Indiana as an example. With the exception of loan segments “Farmland” and “Other,” Indiana’s quarterly loss rates are slightly more highly correlated to Indiana's state economic data (GSP, unemployment and Indiana’s historical loss rates) than to national data (GDP, unemployment and U.S. historical losses). Using Indiana’s historical data for GSP and unemployment, and adjusting for government actions combined with forecasted data, quarterly estimated portfolio loss rates range from 0.05 to 0.40. Your actual estimates depend on a numCINNAIRE.COM It takes more than good intentions to transform communities. It takes capital, development capacity and trusted partnerships. In 25 years, we’ve delivered more than $7.3 billion in community impact. Overcoming challenges. Solving problems. Backed by a commitment to creating healthy communities that has never wavered. The Return on Investment: Safe, Affordable Homes. Healthy Communities. Better Lives. INVESTING IN INDIANA COMMUNITIES FOR MORE THAN 25 YEARS. Transforming Communities. Transforming Lives. ber of factors, such as the variance between your local economy and the average for Indiana, your actual forecasts, tax rates and eligibility for loss carrybacks, in addition to the timing of the recovery or future infections in your local economy and government actions. By triaging effectively, however, you can focus your institution on the most needed activities. Once you have a top-down view, you can decide if it makes sense to spend time on more detailed activities. HB
RkJQdWJsaXNoZXIy MTg3NDExNQ==