Federal Deposit Insurance Corporation
FDIC
Banking
Review
1998
Volume 11, No. 4
l Mutual-to-Stock Conversions
l Loan-Loss Recognition
l Recent Developments
l Mutual-to-Stock Conversions
l Loan-Loss Recognition
l Recent Developments
FDIC
Banking
Review
1998
Volume 11, No. 4
l Mutual-to-Stock Conversions
l Loan-Loss Recognition
l Recent Developments
l Mutual-to-Stock Conversions
l Loan-Loss Recognition
l Recent Developments
Table of Contents
FDIC
Banking
Review
1998
Volume 11, No. 4
Mutual-to-Stock Conversions: Problems with the
Pricing of Initial Public Offerings
by Joseph A. Colantuoni Page 1
This article examines the factors that affect conversion returns. The author
concludes that preconversion equity in mutual thrifts is what creates the
windfall gains that accompany mutual-to-stock conversions.
The Influence of Examiners and Auditors on Loan-Loss
Recognition
by Drew Dahl, John P. OíKeefe, and Gerald A. Hanweck Page 10
The authors find that when bankers have some discretion in their treatment
of loan losses, bank examinersóbut not auditorsóinfluence the timing of
loan-loss recognition. For their part, auditors appear to focus on the
provision for loan losses.
Recent Developments Affecting Depository Institutions
by Lynne Montgomery Page 26
This regular feature of the FDIC Banking Review contains information on
regulatory agency actions, state legislation and regulation, and articles and
studies pertinent to banking and deposit insurance issues.
Chairman
Donna Tanoue
Division of Research
and Statistics,
Director
Wm. Roger Watson
Deputy Directors
Barry Kolatch
Steven A. Seelig
Editor
Steven A. Seelig
Editorial Committee
Jack T. Reidhill
Detta Voesar
Managing Editor
Detta Voesar
Editorial Secretary
Cathy Wright
Design and Production
Geri Bonebrake
The views expressed are
those of the authors and do
not necessarily reflect offi-
cial positions of the Federal
Deposit Insurance Corpora-
tion. Articles may be
reprinted or abstracted if
the FDIC Banking Review
and author(s) are credited.
Please provide the FDICís
Division of Research and
Statistics with a copy of any
publications containing re-
printed material.
Single-copy subscriptions
are available to the public
free of charge. Requests for
subscriptions, back issues
or address changes should
be mailed to: FDIC Banking
Review, Office of Corporate
Communications, Federal
Deposit Insurance Corpora-
tion, 550 17th Street, N.W.,
Washington, DC 20429.
FDIC
Banking
Review
1998
Volume 11, No. 4
Mutual-to-Stock Conversions: Problems with the
Pricing of Initial Public Offerings
by Joseph A. Colantuoni Page 1
This article examines the factors that affect conversion returns. The author
concludes that preconversion equity in mutual thrifts is what creates the
windfall gains that accompany mutual-to-stock conversions.
The Influence of Examiners and Auditors on Loan-Loss
Recognition
by Drew Dahl, John P. OíKeefe, and Gerald A. Hanweck Page 10
The authors find that when bankers have some discretion in their treatment
of loan losses, bank examinersóbut not auditorsóinfluence the timing of
loan-loss recognition. For their part, auditors appear to focus on the
provision for loan losses.
Recent Developments Affecting Depository Institutions
by Lynne Montgomery Page 26
This regular feature of the FDIC Banking Review contains information on
regulatory agency actions, state legislation and regulation, and articles and
studies pertinent to banking and deposit insurance issues.
Chairman
Donna Tanoue
Division of Research
and Statistics,
Director
Wm. Roger Watson
Deputy Directors
Barry Kolatch
Steven A. Seelig
Editor
Steven A. Seelig
Editorial Committee
Jack T. Reidhill
Detta Voesar
Managing Editor
Detta Voesar
Editorial Secretary
Cathy Wright
Design and Production
Geri Bonebrake
The views expressed are
those of the authors and do
not necessarily reflect offi-
cial positions of the Federal
Deposit Insurance Corpora-
tion. Articles may be
reprinted or abstracted if
the FDIC Banking Review
and author(s) are credited.
Please provide the FDICís
Division of Research and
Statistics with a copy of any
publications containing re-
printed material.
Single-copy subscriptions
are available to the public
free of charge. Requests for
subscriptions, back issues
or address changes should
be mailed to: FDIC Banking
Review, Office of Corporate
Communications, Federal
Deposit Insurance Corpora-
tion, 550 17th Street, N.W.,
Washington, DC 20429.