FDIC Bank NIM Compression Index →

A credit-risk agent monitoring a bank-counterparty portfolio polls ADW-233 monthly and — when the nim_compression_score exceeds 80 on a rising trend (the backtest shows the current score is 95.8, at the 100th percentile of its two-observation history, signaling sector-wide NIM at historically severe compression) — automatically flags all bank exposures above a $10M threshold for enhanced monitoring and routes them to the risk desk for covenant review. Because source_lineage traces to FDIC BankFind Suite call-report data and methodology_version pins the 20-quarter z-score window, the agent can document its escalation rationale for model-risk auditors without human intermediation.

A bank equity analyst uses the nim_zscore and sector_nim fields to identify whether NIM compression is a sector-wide phenomenon or concentrated in specific asset-size tiers, enabling differentiated buy/hold calls before quarterly earnings releases. The FDIC call-report data that underlies ADW-233 lags net-income disclosures by roughly six to eight weeks — the IOM converts that raw lag into a normalized z-score that surfaces sector deterioration earlier than waiting for bank earnings calls, giving the analyst a documented, reproducible signal rather than an ad hoc screen.