Risk Management Manual of Examination Policies - FDIC

Concentrations 99999
Listed below are concentrations of obligations, direct and indirect, according to the following guidelines: 1) Concentrations of 25% or more of Tier 1
Capital by individual borrower, small interrelated group of individuals, single repayment source or individual project; 2) Concentrations of 100% or
more of Tier 1 Capital by industry, product line, type of collateral, or short term obligations of one financial institution or affiliated group. Any other
concentrations may be listed in the 25% category if desired. An appropriate percentage of total assets is used when a bank's capital is so low as to make
its use meaningless. U.S. Treasury securities, obligations of U.S. Government agencies and corporations, and any assets collateralized by same are not
scheduled.
CORRESPONDENT BANK CONCENTRATIONS
FIRST NATIONAL BANK
Anothercity, Anotherstate
DESCRIPTION DETAIL AMOUNT
EXTENDED
Due From Account 3,025
Federal Funds Sold 4,000
This concentration represents 124 percent of Tier 1 Capital.
CREDIT CONCENTRATION
John and Mary Smith Relationship
John Smith
Consumer installment 75
John and Mary Smith
RE mortgage 275
JMS Corporation
JM: John and Mary Smith
Secured commercial loans (3) 685
Commercial letters of credit (2) 215
J&M Realty Trust
Gty: John and Mary Smith
Commercial RE mortgage 700
This concentration represents 34 percent of Tier 1 Capital.
INDUSTRY CONCENTRATION
7,025
1,950
Fishing, Hunting, and Trapping Industry (SIC Code 1009) 8,694
This amount is composed of 49 loans to fishing industry-related borrowers.
Repayment of these loans is dependent upon the same sources of income
and upon extension of fishing rights granted in the Georges Bank by the
Canadian Department of Fisheries, which expire in 2005. The industry
concentration represents 153 percent of Tier 1 Capital.
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