1301:12-2-01 Net worth requirement.

(A) Net worth as referred to in 1161.53 of the revised code shall consist of the following:

(1) Common stockholders’ equity, which is common stock and surplus, undivided profits, capital reserves that represent a segregation of undivided profits, and foreign currency translation adjustments, less net unrealized holding losses on available-for-sale equity securities with readily determinable fair values;

(2) Noncumulative perpetual preferred stock, including any related surplus where the issuer has the option to waive payment of dividends and where dividends waived do not accumulate to future periods or represent a contingent claim on the issuer, but is not preferred stock where the dividend is reset periodically based, in whole or in part, on the savings bank’s current credit standing, including, but not limited to, auction rate, money market, and remarketable preferred stock regardless of whether the dividends are cumulative or noncumulative;

(3) Minority interests in consolidated subsidiaries, unless the minority interests fail to provide meaningful capital support to the consolidated savings bank.

(B) The minimum net worth of a savings bank with a composite rating of one as defined in the Uniform Financial Institutions Rating System shall be not less than three per cent of total assets.

(C) For all other savings banks not meeting the conditions set forth in paragraph (A) of this rule, the minimum acceptable net worth or capital requirement shall be not less than four per cent of adjusted total assets.

(D) Nothing is this or any other rule shall preclude the superintendent from requiring a savings bank to maintain a higher net worth level commensurate with the savings bank’s risk profile.

HISTORY: Eff. 11-17-91; replaces 1301:12-1-09, eff. 6-3-04

Rule promulgated under: RC 119.03

Rule authorized by: RC 1163.24

Rule amplifies: RC 1161.53

119.032 Review Date: 5-24-09