N.M. Admin. Code § 2.60.17.7
Current through Register Vol. 35, No. 23, December 10, 2024
Section 2.60.17.7 - DEFINITIONSA. "Securities" shall be defined as those securities eligible as collateral for severance tax permanent funds under Section 6-10-16 and 7-27-5.2 [repealed], as amended, and effective May 21, 1986, Art. IV, Section 23, N.M. Constitution.B. "Mortgages", shall be defined as eligible mortgage collateral under Section 7-27-5.2 NMSA 1978 [repealed] and the council's guidelines promulgated under Section 7-27-5.2 [repealed], as those guidelines may be amended from time to time by the council.C. Risk classifications: (1) "CLASS A" means a bank which meets all of the following 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 with 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 at 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.N.M. Admin. Code § 2.60.17.7