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Author: CassBielski One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3913  
Subject: Foolish Flow for Financial Companies Date: 12/8/2001 8:26 AM
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At the risk of asking too many questions on this board, I will post another one:

Can anyone offer advice on using Fool methodologies for evaluating financial institutions?  I keep running into the same problems with them.  For example, how does one take a Foolish flow ratio for financial institutions?

Here is a segment of Synovus's balance sheet.  Can anyone pull a Foolish flow number out of this?

ASSETS
Cash and due from banks                $    557,704              558,054
Interest earning deposits with banks          3,796                3,806
Federal funds sold                           19,142              375,765
Mortgage loans held for sale                184,192              108,234
Investment securities available for sale  2,087,135            1,807,039
Investment securities held to maturity            -              270,889

Loans, net of unearned income            11,852,572           10,751,887
Allowance for loan losses                 (162,117)            (147,867)
                                                                                                                ------------        ------------
      Loans, net                         11,690,455           10,604,020
                                      --------------        ------------
Premises and equipment, net                 551,623              526,988
Other assets                                687,083              653,297
                                      --------------        ------------
      Total assets                     $ 15,781,130           14,908,092
                                      ==============        ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
   Non-interest bearing                $  1,750,644            1,726,817
   Interest bearing                       9,775,130            9,434,893
                                      --------------        ------------
      Total deposits                     11,525,774           11,161,710
Federal funds purchased and securities sold under
      agreement to repurchase             1,211,827            1,039,900
Long-term debt                              935,731              840,859
Other liabilities                           396,014              367,562
                                      --------------        ------------
      Total liabilities                  14,069,346           13,410,031
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Author: madmarv Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2064 of 3913
Subject: Re: Foolish Flow for Financial Companies Date: 12/9/2001 3:50 AM
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Flowie does not exist for companies the do not break out Current Assets/Liabilities from Total Assets/Liabilities.

Here are a few links to some writings I've found useful in analyzing financial institutions:

http://www.management.mcgill.ca/mic/education/FinancialInstitutions.PDF
http://boards.fool.com/Message.asp?mid=11399568&sort=recommendations
http://boards.fool.com/Message.asp?mid=11404587&sort=recommendations

You can try browsing my speadsheets for ideas (http://www.geocities.com/madmarv00). I've been meaning to update the one on financial institutions but it hasn't been a high priority for me lately. You should also try searching the individual TMF stock boards of the major financial companies (C, AXP, MWD, etc.). The traffic is relatively light so finding the gems in the rough is not as difficult as you might imagine.

Marv

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Author: CassBielski One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2065 of 3913
Subject: Re: Foolish Flow for Financial Companies Date: 12/9/2001 8:43 AM
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*****Here are a few links to some writings I've found useful in analyzing financial institutions: . . . *****

Thanks, Marv. I will check them out.--CassBielski



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Author: sleejohnson Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2066 of 3913
Subject: Re: Foolish Flow for Financial Companies Date: 12/9/2001 10:11 AM
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Here is a TMF article you may find helpful:

http://www.fool.com/news/foth/2001/foth010418.htm

Many of the concepts in that article are explained more thoroughly in this book by Richard Loth. It has a chapter on evaluating bank financial statements and I highly recommend it:

http://www.amazon.com/exec/obidos/ASIN/0793131529/qid=1007910488/sr=1-3/ref=sr_1_11_3/103-9485631-2891809

Slee

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Author: madmarv Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2067 of 3913
Subject: Re: Foolish Flow for Financial Companies Date: 12/9/2001 11:32 AM
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I just remembered one more link:

http://www.bankstocks.com/

From my experience, these guys are geared more towards the nuts and bolts of running a bank, not really on how to analyze them from their SEC filings. But they do have some great reading material if you're really interested in that business.

Marv

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Author: CassBielski One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2069 of 3913
Subject: Re: Foolish Flow for Financial Companies Date: 12/10/2001 7:53 AM
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*****Here is a TMF article you may find helpful:*****

Thanks, Slee.--CassBielski


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Author: CassBielski One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2086 of 3913
Subject: Re: Foolish Flow for Financial Companies Date: 12/17/2001 6:22 PM
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I read substantial amounts of the literature recommended to me on this topic. Thanks again, guys. However, I have come to the conclusion that it is going to take me a while to get my arms around financial institutions, regardless of Bill Mann's claim that they are among the easiest companies to understand.

What might help is if anyone has a reference of a description of a financial institution that has run into troubles and an analysis of what caused those troubles. For example, I have learned a few things (I think) from the Fool's analysis of Lucent's troubles.--CassBielski

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