KBRA Financial Intelligence

3Q 2023 Bank KFI Scores Tick Lower

More banks had their KFI Scores lowered than increased in 3Q 2023, with 441 scores falling versus 348 rising. Declines have outpaced gains this year by 943 to 540, according to KBRA Financial Intelligence (KFI) data. The financial health of U.S. banks has been deteriorating with the Federal Reserve’s rapid increase in borrowing costs, which has saddled lenders with unrealized losses. KFI Scores measure the financial health of almost 10,000 U.S. banks and credit unions on an A to E scaling, using a proprietary quantitative model. KFI users can also track lender performance trends along with KFI Scores by analyzing bank regulatory data.