| Company | APPLIED BANK | |
| Group Affiliation | Not Applicable | |
| Safety Rating | A+ (Excellent Financial Strength) | |
| Address | 601 Delaware Ave, Wilmington, DE 19801 | |
| Date Reviewed | March 25, 2010 (No Change) based on data through December 31, 2009 | |
| Next Review Date | June 2010 |
The A+ rating means that, in our opinion, this institution offers excellent financial security. It has maintained a conservative stance in its business operations and underwriting practices as evidenced by its strong equity base, top-notch asset quality, steady earnings, and high liquidity. While the financial position of any institution is subject to change, we believe this institution has the resources necessary to deal with severe economic conditions.
| TheStreet.com Financial Strength Ratings represent a completely independent, unbiased opinion of an institution's financial strength. The ratings are derived, for the most part, from quarterly financial statements filed with state and federal regulators. Ratings are assigned by our analysts based on a complex analysis of hundreds of factors that are synthesized into five indexes: capitalization, asset quality, profitability, liquidity and stability. These indexes are then used to arrive at a letter grade rating. The primary components of TheStreet.com Financial Strength Rating are as follows: |
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- Capitalization Index gauges capital adequacy in terms of each institution's cushion to absorb
future operating losses under various potential business and economic scenarios as they may
impact the company's net interest margin, securities' values, and the collectibility of its loans. - Asset Quality Index measures the quality of the institution's past underwriting and investment
practices, as well as its loss reserve coverage. - Profitability Index measures the soundness of the company's operations and the contribution of
profits to the company's financial strength. - Liquidity Index values a company's ability to raise the necessary cash to satisfy creditors and
honor depositor withdrawals in the event the institution suffers from problems in other areas such as
capital adequacy. - Stability Index integrates a number of sub-factors that affect consistency (or lack thereof) in
maintaining financial strength over time. Sub-factors include 1) risk diversification in terms of
company size and loan diversification; 2) deterioration of operations as reported in critical asset,
liability, income and expense items, such as an increase in loan delinquency rates or a sharp
increase in loan originations; 3) years in operation; 4) former problem areas where, despite recent
improvement, the company has yet to establish a record of stable performance; and 5) relationships
with holding companies and affiliates.
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