The Many Benefits of Analyzing Non-GAAP Data, Part 2 of 3

Last week, we began to explore the concept of using other types of data (non-GAAP) to enhance our analysis on publicly-traded companies. While the focus was on insurance companies, this week we are focusing on another industry we enjoy getting under the hood of: Banks. Next week, in the third and final part of this series, we will hit the consumer industry.


Also, we recently published an in-depth report on how we analyze insurance companies, so if this content is of interest to you, please click here to download the report.

Again, we ask the question: if you had access to more detailed information other than the GAAP (Generally Accepted Accounting Principles), wouldn’t you use it? It turns out, there are multiple sets of reporting books beyond GAAP for many of the companies we look at. These include regulatory filings that are more detailed than the GAAP data that most of the street spends their time analyzing.


In addition to GAAP filings, we utilize Call Reports filed with the FDIC as well as Financial Statements filed with the Federal Reserve.


This data can provide us with additional insight into loan and deposit composition. With this we can better understand the risk profile given the loan composition and have a better idea as to the quality of the deposits.

This data can also provide:

  • Additional insight into the composition of the securities book
  • Additional data on asset quality by loan type
  • Additional data on non-performing assets
  • Additional insight into capital adequacy/composition
  • Further breakdown of noninterest revenue sources (along with expenses)
  • Details of exposure to foreign lending/income

We strive to identify smaller banks that are overcapitalized. This tends to make the banks less susceptible to the ups and downs of credit cycles and allows for flexibility in terms of capital management. To learn more about our approach, we encourage you to read another one of our blogs: Balance Sheet Detectives - How We Analyze Bank Stocks.


If you would like to be notified when we release new blogs and more in-depth content, please let us know! 
Just complete the form on this page and we will deliver our insights to your inbox once per week. 

Read Statutory Data: A Look Under the Hood of an Insurance Company



Sign Up To Receive Our Market Insights.

The views described herein do not constitute investment advice, are not a guarantee of future performance, and are not intended as an offer or solicitation with respect to the purchase or sale of any security. Investing involves risk, including loss of principal. Investors should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. Please review the offering memorandum or prospectus of a Fund for a complete discussion of the Fund’s risks which include, but are not limited to: possible loss of principal amount invested; stock market risk; value risk; interest rate risk; income risk; credit risk; foreign securities risk; currency risk and derivatives risk.

Nothing contained herein constitutes investment, legal, tax, or other advice nor should be relied upon in making an investment or other decision. Any projections, outlooks or estimates contained herein are forward looking statements based upon specific assumptions and should not be construed as indicative of any actual events that have occurred or may occur. 

This site uses cookies to enhance your website experience. By subscribing to our Market Insights, you are agreeing to our use of cookies. See our cookie policy here