Fourth Quarter 1997 COMMERCIAL BANKING PERFORMANCE — FOURTH QUARTER 1997 

• Bank Earnings Set New Quarterly, Full-Year Records 

• Quarterly Earnings Surpass $15 Billion For First Time 

• Quarterly Growth In Assets Is An All-Time High 

• Industry Assets Now Exceed $5 Trillion 

• First Bank Failure In Fifteen Months 

FDIC 

Division of Research 

& Statistics 

Don Inscoe 

Associate Director, 

Statistics Branch 

(202) 898-3940 

Tim Critchfield 

(202) 898-8557 

Jim McFadyen 

(202) 898-7027 

Ross Waldrop 

(202) 898-3951 

Insured commercial banks reported record net 

income of $15.3 billion in the fourth quarter of 

1997, an increase of $511 million (3.5 percent) 

over the previous quarterly record, set in the third 

quarter of 1997. The positive contributions of 

higher gains from sales of securities, increased 

net interest income and reduced tax expenses 

outweighed the negative effect on industry 

earnings of lower trading income during the 

quarter. Full-year industry earnings totaled $59.2 

billion, up $6.9 billion (13.1 percent) from 1996 

results. Commercial banks’ return on average 

assets (ROA) rose to a record 1.23 percent in 

1997, from 1.19 percent in 1996. The previous 

record for full-year industry ROA had been 1.20 

percent, set in 1993. Higher noninterest revenue 

and net interest income were chiefly responsible 

for the improved annual profits. 

Trading revenues in the fourth quarter were $1.3 

billion below third-quarter levels, producing a 

$221-million drop in noninterest income. On the 

plus side, tax expenses declined by $802 million, 

because of restructuring charges and trading 

losses at a few large institutions, securities sales 

netted $611 million more in gains than in the third 

quarter, and net interest income was $422 million 

higher. The average ROAfor the quarter was 1.24 

percent, up from 1.22 percent in the third quarter 

and 1.21 percent in the fourth quarter of 1996. 

More than half of all banks – 58.5 percent – had 

quarterly ROAs of 1.00 percent or better, and 

60.7 percent had higher earnings than in the 

same quarter of 1996. Compared to a year ago, 

quarterly earnings were $1.6 billion (11.5 percent) 

higher. Much of the improvement came from 

higher net interest income (up $2.5 billion, or 6.0 

percent) and higher noninterest income (up $2.3 

billion, or 9.4 percent). The improvement was limited by increased noninterest expenses (up $2.7 

billion, or 6.5 percent) and higher loan-loss provisions (up $945 million, or 20.9 percent). 

Quarterly Net Income, 1993–1997 

$ Billions 

15.3 

14.514.614.8 

Net Operating Income 

15 Securities and Other Gains, Net 

13.8 13.8 13.7 13.2 

11.8 12.0 11.5 12.0 12.0 

11.111.2 10.7 11.1 10.8 10.8 10.3 

10 

5 

0 

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 

1993 1994 1995 1996 1997 

Full-year earnings were boosted by rising net interest income and strong growth in noninterest 

income. Net interest income totaled $174.5 billion in 1997, up $11.7 billion (7.2 percent) from 

1996, while noninterest income passed the $100-

billion mark for the first time. Banks reported 

$104.5 billion in noninterest revenues in 1997, up 

$10.9 billion (11.7 percent) from a year ago. The 

increase in net interest income was driven by 

growth in earning assets, which increased 9.2 

percent in 1997. The industry’s net interest margin declined for the fifth consecutive year, to 4.21 

percent from 4.27 percent in 1996. It is now 20 

Requests for copies of and subscriptions to the FDIC Quarterly Banking Profile should be made through the FDIC’s Public 

Information Center, 801 17th Street, NW, Washington, DC 20434; telephone (202) 416-6940 or (800) 276-6003. 

Also available on the Internet at www.fdic.gov. Comparable financial data for individual institutions can now be obtained from 

the FDIC’s Institution Directory (I.D.) System on this Web site. 
basis points below the peak level of 4.41 percent, 

reached in 1992. Noninterest income growth was 

largely attributable to higher income from trust activities 

(up $2.4 billion, or 17.8 percent), and growth in other 

fees (up $5.2 billion, or 14.0 percent). More than twothirds of all commercial banks – 68.8 percent – reported 

higher earnings in 1997, and a similar proportion (68.7 

percent) had full-year ROAs of 1.00 percent or higher. 

The industry’s return on equity (ROE) rose to 14.70 percent in 1997 from 14.46 percent in 1996. This is the 

second-highest annual industry ROE since the inception of the FDIC. The record high was 15.34 percent, set 

in 1993. 

Return on Assets (ROA) and Equity (ROE), 

1934–1997 

ROA% ROE% 

0 

0.5 

1 

1.5 

0 

5 

10 

15 

'35 '40 '45 '50 '55 '60 '65 '70 '75 '80 '85 '90 '95 

Return on 

Equity 

Return on 

Assets 

Total assets of commercial banks registered their largest quarterly increase ever, rising by $145.4 billion in the 

fourth quarter, to $5.01 trillion. This marks the first time 

that industry assets have exceeded $5 trillion. At the 

same time, unused loan commitments extended by 

banks exceeded $3 trillion for the first time at year-end. 

Loans and leases increased by $67.9 billion, with commercial and industrial loans growing by $30.7 billion. 

On-balance-sheet credit card loans increased by $10.8 

billion, while credit-card loans securitized and sold offbalance-sheet grew by $10.4 billion during the quarter. 

Banks increased their securities holdings by $36.3 billion, as mortgage-backed securities increased by $23.9 

billion. Balances due from depository institutions had a 

seasonal increase of $25.1 billion in the quarter. 

If the risk weights that are assigned to different asset 

categories to compute regulatory capital ratios are applied to the assets of commercial banks, it is evident that 

the relative credit risk of asset portfolios has been rising. 

Higher-risk loans have replaced lower-risk securities, 

and the composition of loan portfolios has shifted toward higher-risk loan categories. Also, risk-weighted 

assets take into account banks’ exposures to offbalance-sheet assets, which have experienced rapid 

growth in recent years. When commercial bank profitability is adjusted to reflect the changing risk in asset 

portfolios, the data indicate that banks have been able 

to maintain a fairly stable rate of return, allowing for the 

increase in portfolio risk. 

Quarterly Return on Risk-Weighted Assets (RWA),* 

and RWA to Total Assets, 1991–1997 

Return on RWA (%) RWA to Assets (%) 

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 

0.3 

0.6 

0.9 

1.2 

1.5 

1.8 

70 

72 

74 

76 

78 

80 

Return on 

Risk-Weighted 

Assets 

Risk-Weighted 

Assets 

to Assets 

1991 1992 1993 1994 1995 1996 1997 

* Assets weighted according to risk categories used in regulatory capital computations. 

Deposits also increased strongly at commercial banks 

in the fourth quarter. Total deposits increased $116.8 billion, the largest quarterly increase since the fourth quarter of 1986. Much of the growth occurred in domestic 

savings and demand deposits, which increased by 

$46.2 billion and $37.0 billion, respectively. Despite the 

growth in lending and in core deposits, in the fourth 

quarter the industry’s net interest margin declined to its 

lowest level in six years, as funding costs rose more rapidly than asset yields. The average margin was 4.18 

percent, down from 4.23 percent in the third quarter; this 

is the lowest quarterly average since the third quarter of 

1991, when it was 4.17 percent. 

Quarterly Net Interest Margins, 1993–1997 

Net Interest Margin (%) 

5.0 

Assets < $100 Million 4.73% 

4.5 

Assets > $100 Million 4.15% 

4.0 

12341234123412341234 

1993 1994 1995 1996 1997 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 Fourth Quarter 1997 
Asset quality indicators continued to present a mixed 

picture. Net charge-off rates were lower for most loan 

categories, including credit-card loans, but higher 

charge-offs on other consumer loans and on commercial real estate loans pushed the quarterly net chargeoff rate to an annualized 0.69 percent, the highest quarterly loss rate in four years (since the fourth quarter of 

1993, when the rate was 0.93 percent). The net chargeoff rate on credit-card loans declined slightly, to 5.34 

percent from a record 5.37 percent in the third quarter. 

Credit cards still accounted for 60.1 percent of all loans 

charged-off by commercial banks in the fourth quarter. 

For the full year, the industry’s net charge-off rate was 

0.63 percent, up from 0.58 percent in 1996. Credit-card 

loans accounted for $11.7 billion (64.0 percent) of the 

$18.3 billion in net loan charge-offs taken in 1997. 

Annual Net Charge-Off Rates on Loans, 1984–1997 

% of Loans 

0 

1.0 

2.0 

3.0 

Real Estate 

Loans to Individuals 

C&I 

All Other Loans* 

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 

* Includes loans to foreign governments, depository institutions and lease receivables. 

The percent of commercial bank loans that were noncurrent (past due 90 days or more or in nonaccrual 

status) declined to the lowest level in the 16 years that 

noncurrent loan data have been reported. At the end of 

1997, only 0.96 percent of loans were noncurrent, down 

from 0.99 percent at the beginning of the fourth quarter, 

and 1.04 percent a year earlier. The noncurrent rate on 

credit-card loans rose from 2.00 percent to 2.14 percent 

during the quarter, but other loan categories showed either improvement or nominal increases in noncurrent 

levels. The amount of noncurrent loans held by commercial banks declined by $216 million in the fourth 

quarter. For the full year, noncurrent loans fell by $659 

million. 

Although commercial banks’ reserves declined by $201 

million during the fourth quarter, the industry’s “coverage ratio” improved slightly to $1.92 in reserves for 

every $1.00 in noncurrent loans, due to the decline in 

noncurrent loans. The ratio of reserves to total loans declined for the eighteenth time in the last nineteen quarters, to 1.84 percent. This is the lowest level for the 

Noncurrent Loan Rates at Year-End,* 1984–1997 

% of Loans 

Real Estate 

Loans to Individuals 

C&I 

All Other Loans** 

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 

0 

1.0 

2.0 

3.0 

4.0 

5.0 

6.0 

* Noncurrent loan rates represent the percentage of loans that are past due 90 days or 

more or in nonaccrual status. 

** Includes loans to foreign governments, depository institutions and lease receivables. 

industry’s reserve ratio since the first quarter of 1987. 

Equity capital increased by $2.5 billion in the fourth 

quarter, but because of the strong growth in assets, the 

industry’s equity-to-assets ratio declined to 8.33 percent, from 8.53 percent at the end of the third quarter. 

The number of commercial banks reporting financial results declined by 72 institutions in the fourth quarter, 

from 9,215 to 9,143. There were 54 new charters during 

the quarter, and 129 banks were absorbed by mergers. 

Of these, 15 represented interstate mergers (absorption 

by an out-of-state institution). For the full year, 599 commercial banks were absorbed by mergers (190 were interstate mergers), and 188 new bank charters were 

issued. This is the largest number of new commercial 

bank charters since 1989, when 193 were issued. One 

insured commercial bank failed in the fourth quarter, 

ending a period of 15 months without any commercial 

bank failures. The last time there was a comparable interval with no commercial bank failures was in 1962-63, 

when 15 months elapsed between bank failures. 

Structural Changes Among FDIC-Insured 

Commercial Banks, 1980 - 1997 

`80 `81 `82 `83 `84 `85 `86 `87 `88 `89 `90 `91 `92 `93 `94 `95 `96 `97 

0 

100 

200 

300 

400 

500 

600 

700 

New Charters 

Failed Banks 

Mergers 

1 

188 

599 

FDIC Quarterly Banking Profile 

Fourth Quarter 1997 3 FDIC-Insured Commercial Banks 
TABLE I-A. Selected Indicators, FDIC-Insured Commercial Banks 

Return on assets (%)................................................ 1.23 1.19 1.17 1.15 1.20 0.93 0.53 

Return on equity (%)................................................. 14.70 14.46 14.66 14.61 15.34 12.98 7.94 

Core capital (leverage) ratio (%)............................... 7.56 7.64 7.61 7.64 7.65 7.21 6.48 

Noncurrent assets plus

 other real estate owned to assets (%).................... 0.66 0.75 0.85 1.01 1.61 2.54 3.02 

Net charge-offs to loans (%)..................................... 0.63 0.58 0.49 0.50 0.85 1.27 1.59 

Asset growth rate (%)................................................ 9.54 6.16 7.53 8.21 5.72 2.19 1.22 

Net interest margin (%)............................................. 4.21 4.27 4.29 4.36 4.40 4.41 4.11 

Net operating income growth (%)............................. 12.60 6.45 7.48 16.18 35.36 92.41 -0.63 

Number of institutions reporting................................ 9,143 9,528 9,940 10,451 10,958 11,462 11,921 

Percentage of unprofitable institutions...................... 4.51 4.24 3.55 3.98 4.89 6.85 11.60 

Number of problem institutions................................. 71 82 144 247 426 787 1,016 

Assets of problem institutions (in billions)................. $5 $5 $17 $33 $242 $408 $528 

Number of failed/assisted institutions....................... 1 5 6 11 42 100 108 

1997 1996 1995 1994 1993 1992 1991 

TABLE II-A. Aggregate Condition and Income Data, FDIC-Insured Commercial Banks 

(dollar figures in millions) 

Number of institutions reporting.............................................. 

Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

1997 1997 1996 96:4-97:4 

9,143 9,215 9,528 -4.0 

Total employees (full-time equivalent).................................... 

CONDITION DATA 

1,537,431 1,524,129 1,489,193 3.2 

Total assets............................................................................. $5,014,884 $4,869,454 $4,578,291 9.5

 Loans secured by real estate............................................ 1,243,874 1,226,870 1,139,020 9.2

 Commercial & industrial loans........................................... 795,932 765,219 709,597 12.2

 Loans to individuals........................................................... 561,424 554,539 562,292 -0.2

 Farm loans........................................................................ 44,886 45,021 41,324 8.6

 Other loans & leases......................................................... 329,074 316,036 364,355 -9.7

 Less: Unearned income.................................................... 4,525 4,750 5,308 -14.7

 Total loans & leases............................................................ 2,970,667 2,902,936 2,811,280 5.7

 Less: Reserve for losses..................................................... 54,718 54,919 53,654 2.0

 Net loans & leases................................................................ 2,915,949 2,848,017 2,757,626 5.7

 Securities............................................................................... 871,870 835,530 800,652 8.9

 Other real estate owned........................................................ 3,794 4,136 4,783 -20.7

 Goodwill and other intangibles.............................................. 61,673 58,882 44,691 38.0

 All other assets...................................................................... 1,161,599 1,122,889 970,539 19.7 

Total liabilities and capital....................................................... 5,014,884 4,869,454 4,578,291 9.5

 Noninterest-bearing deposits................................................ 676,399 629,464 664,259 1.8

 Interest-bearing deposits....................................................... 2,745,297 2,675,460 2,532,888 8.4

 Other borrowed funds............................................................ 822,994 822,245 716,012 14.9

 Subordinated debt................................................................. 61,989 55,096 51,167 21.1

 All other liabilities................................................................... 290,310 271,760 238,709 21.6

 Equity capital......................................................................... 417,896 415,430 375,256 11.4 

Loans and leases 30-89 days past due.................................. 38,939 35,429 38,417 1.4 

Noncurrent loans and leases.................................................. 28,471 28,687 29,130 -2.3 

Restructured loans and leases................................................ 2,460 2,726 3,651 -32.6 

Direct and indirect investments in real estate......................... 660 655 668 -1.2 

1-4 Family residential mortgages............................................ 718,907 708,214 655,424 9.7 

Mortgage-backed securities.................................................... 384,147 360,245 335,853 14.4 

Earning assets......................................................................... 4,311,329 4,214,492 3,949,143 9.2 

Long-term assets (5+ years)................................................... 777,175 738,556 652,259 19.2 

Volatile liabilities...................................................................... 1,600,736 1,580,448 1,405,957 13.9 

Foreign office deposits............................................................ 526,195 507,048 473,580 11.1 

Unused loan commitments...................................................... 3,084,388 2,967,947 2,579,910 19.6 

Off-balance-sheet derivatives................................................. 25,380,345 25,679,216 20,297,423 25.0 

INCOME DATA 

Total interest income............................................. 

Total interest expense........................................... 

 Net interest income............................................. 

Provision for loan losses....................................... 

Total noninterest income....................................... 

Total noninterest expense..................................... 

Securities gains (losses)....................................... 

Applicable income taxes....................................... 

Extraordinary gains, net ....................................... 

 Net income.......................................................... 

Net charge-offs...................................................... 

Cash dividends...................................................... 

 Net operating income.......................................... 

Preliminary Preliminary 

Full Year Full Year 4th Quarter 4th Quarter %Change 

1997 1996 %Change 1997 1996 96:4-97:4 

$339,554 $312,769 8.6 $88,483 $80,761 9.6 

165,039 150,001 10.0 43,854 38,664 13.4

174,515 162,768 7.2 44,629 42,097 6.0 

19,785 16,285 21.5 5,460 4,515 20.9 

104,500 93,580 11.7 27,134 24,801 9.4 

169,958 160,714 5.8 44,384 41,677 6.5 

1,843 1,114 65.4 867 387 123.8 

31,898 28,192 13.1 7,506 7,387 1.6 

19 88 -78.3 4 (1) N/A

59,236 52,359 13.1 15,284 13,706 11.5 

18,294 15,501 18.0 5,051 4,439 13.8 

42,604 38,789 9.8 16,107 12,975 24.1

58,007 51,518 12.6 14,711 13,458 9.3 
 

 

 

 

 

TABLE III-A. Full Year 1997, FDIC-Insured Commercial Banks 

FULL YEAR Preliminary 

 (The way it is . . . ) 

Number of institutions reporting................ 

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

9,143 5,853 2,923 301 66 714 1,524 1,999 2,329 1,601 976 

Total assets (in billions)............................ $5,014.9 $267.8 $727.8 $902.6 $3,116.7 $1,893.9 $946.8 $804.8 $335.0 $356.0 $678.3 

Total deposits (in billions)......................... 3,421.7 230.4 602.1 624.6 1,964.6 1,149.4 654.6 579.1 255.0 291.1 492.4 

Net income (in millions)............................. 59,236 3,053 9,231 11,891 35,061 20,522 11,083 9,994 4,644 4,039 8,954 

% of unprofitable institutions..................... 4.5 6.4 1.1 1.7 NA 3.6 6.1 3.9 2.6 3.7 9.7 

% of institutions with earnings gains......... 

Performance Ratios (%) 

68.8 64.5 76.6 74.4 81.8 75.5 70.7 71.1 65.4 64.0 72.4 

Yield on earning assets............................. 8.19 8.36 8.40 8.63 7.99 8.02 8.08 8.24 8.65 7.87 8.66 

Cost of funding earning assets................. 3.98 3.70 3.70 3.88 4.11 4.38 3.78 3.97 3.84 3.46 3.54 

Net interest margin.................................... 4.21 4.66 4.69 4.75 3.88 3.64 4.30 4.27 4.81 4.40 5.12 

Noninterest income to earning assets...... 2.52 1.40 1.66 2.60 2.82 3.13 2.01 1.82 2.51 2.08 2.70 

Noninterest expense to earning assets.... 4.10 3.98 3.89 4.12 4.16 4.27 3.80 3.55 4.25 4.20 4.61 

Loan loss provision to assets.................... 0.41 0.22 0.29 0.81 0.34 0.38 0.39 0.38 0.60 0.23 0.56 

Net operating income to assets................ 1.21 1.19 1.33 1.35 1.14 1.09 1.22 1.28 1.42 1.21 1.34 

Return on assets....................................... 1.23 1.19 1.34 1.36 1.18 1.14 1.23 1.29 1.44 1.22 1.35 

Return on equity........................................ 14.70 10.91 13.98 14.92 15.30 15.40 13.69 15.32 15.90 13.78 13.79 

Net charge-offs to loans and leases......... 0.63 0.27 0.36 1.08 0.58 0.73 0.46 0.50 0.82 0.37 0.83 

Loan loss provision to net charge-offs...... 108.15 144.42 131.26 112.96 100.33 100.56 129.32 115.21 111.16 111.26 100.00 

Efficiency ratio........................................... 

Condition Ratios (%) 

59.15 65.18 60.39 54.13 60.07 61.75 58.10 56.96 56.93 62.24 56.19 

Earning assets to total assets................... 

Loss allowance to:

85.97 91.73 91.37 89.39 83.23 82.82 88.28 89.09 90.06 87.89 84.81 

 Loans and leases.................................... 1.84 1.44 1.49 2.11 1.88 2.14 1.53 1.57 1.80 1.40 2.14

 Noncurrent loans and leases.................. 

Noncurrent assets plus

192.19 146.51 170.24 199.00 198.97 177.65 194.14 194.26 190.49 170.04 238.69 

 other real estate owned to assets........... 0.66 0.71 0.65 0.77 0.62 0.73 0.59 0.58 0.69 0.52 0.72 

Equity capital ratio..................................... 8.33 10.82 9.62 9.16 7.58 7.33 8.88 8.35 9.07 8.65 9.82 

Core capital (leverage) ratio...................... 7.56 10.68 9.25 8.39 6.65 6.91 7.64 7.82 8.66 7.93 8.25 

Net loans and leases to deposits.............. 

Structural Changes (YTD)

85.22 67.37 72.94 93.25 88.52 82.33 90.85 89.77 86.17 65.00 90.60 

 New charters.......................................... 188 178 7 3 0 16 44 32 27 27 42

 Banks absorbed by mergers.................. 599 227 284 71 17 44 163 152 88 79 73

 Failed banks........................................... 

PRIOR FULL YEARS

 (The way it was . . . ) 

1 1 0 0 0 0 0 0 0 1 0 

Number of institutions.......................1996 9,528 6,204 2,926 325 73 743 1,577 2,110 2,401 1,683 1,014 

.........................................1994 10,451 7,259 2,800 328 64 834 1,741 2,272 2,622 1,857 1,125 

.........................................1992 11,462 8,292 2,790 329 51 922 1,892 2,521 2,791 2,047 1,289 

Total assets (in billions)....................1996 $4,578.3 $280.1 $713.4 $1,002.4 $2,582.4 $1,730.7 $805.4 $716.8 $297.2 $334.4 $693.8 

.........................................1994 4,010.5 315.9 682.9 1,072.3 1,939.4 1,545.0 646.1 659.6 262.3 304.6 593.0 

.........................................1992 3,505.7 346.0 680.2 1,034.2 1,445.3 1,307.6 550.1 581.5 242.1 282.6 541.7 

Return on assets (%).......................1996 1.19 1.16 1.28 1.31 1.12 1.10 1.22 1.21 1.43 1.22 1.24 

.........................................1994 1.15 1.12 1.19 1.31 1.06 1.07 1.18 1.13 1.46 1.12 1.24 

.........................................1992 

Net charge-offs to loans & leases (%) 

0.93 1.04 1.01 1.02 0.81 0.81 0.99 1.02 1.30 1.12 0.82 

........................................1996 0.58 0.27 0.42 0.89 0.52 0.63 0.45 0.44 0.70 0.35 0.79 

.........................................1994 0.50 0.25 0.37 0.54 0.57 0.75 0.27 0.29 0.46 0.16 0.58 

.........................................1992 

Noncurrent assets plus

1.27 0.57 0.76 1.38 1.57 1.77 0.83 0.96 0.78 0.67 1.30 

 OREO to assets (%).....................1996 0.75 0.77 0.74 0.85 0.71 0.84 0.68 0.57 0.65 0.61 0.88 

.........................................1994 1.01 0.86 0.92 0.90 1.13 1.28 0.72 0.66 0.68 0.67 1.33 

.........................................1992 2.54 1.37 1.71 2.15 3.50 3.55 1.62 1.35 1.18 1.50 3.46 

Equity capital ratio (%)......................1996 8.20 10.55 9.44 8.77 7.38 7.36 8.48 8.43 8.74 8.74 9.22 

.........................................1994 7.78 9.84 8.79 7.94 7.01 7.33 7.84 7.88 8.43 8.15 8.33 

.........................................1992 7.51 9.38 8.20 7.68 6.62 6.93 7.60 7.86 8.43 7.31 8.17 
 

 

 

 

 

 

 

 

*

Credit Card Charge-Off Rates

TABLE IV-A. Fourth Quarter 1997, FDIC-Insured Commercial Banks 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East West 

FOURTH QUARTER Preliminary All than $100 to to than $10 North- South- Mid- South-

 (The way it is . . . ) Institutions Million $1 Billion $10 Billion Billion east east Central west west West 

Number of institutions reporting.......................... 9143 5853 2923 301 66 714 1524 1999 2329 1601 976 

Total assets (in billions)...................................... 5,014.9 267.8 727.8 902.6 3,116.7 1,893.9 946.8 804.8 335.0 356.0 678.3 

Total deposits (in billions)................................... 3,421.7 230.4 602.1 624.6 1,964.6 1,149.4 654.6 579.1 255.0 291.1 492.4 

Net income (in millions)....................................... 15,284.0 685.1 2,235.1 3,462.6 8,901.2 5,322.5 2,422.0 2,733.4 1,295.8 1,028.3 2,482.1 

% of unprofitable institutions............................... 9.6 13.1 3.5 4.3 1.5 7.3 10.4 6.6 11.7 10.0 10.9 

% of institutions with earnings gains................... 60.7 56.7 67.9 65.8 69.7 64.0 60.9 60.7 60.6 57.6 63.0 

Performance Ratios (annualized, %) 

Yield on earning assets....................................... 8.29 8.52 8.5 8.75 8.08 8.13 8.2 8.33 8.78 7.95 8.77 

Cost of funding earning assets........................... 4.11 3.79 3.78 3.97 4.27 4.55 3.88 4.09 3.95 3.62 3.62 

Net interest margin.............................................. 4.18 4.73 4.72 4.78 3.81 3.58 4.31 4.25 4.83 4.33 5.15 

Noninterest income to earning assets................. 2.54 1.55 1.69 2.94 2.73 3.03 2.11 1.9 2.77 2.1 2.75 

Noninterest expense to earning assets............... 4.16 4.38 4.05 4.24 4.15 4.19 4.16 3.58 4.33 4.22 4.67 

Loan loss provision to assets.............................. 0.44 0.28 0.35 0.78 0.38 0.42 0.49 0.32 0.61 0.28 0.59 

Net operating income to assets.......................... 1.19 1.02 1.23 1.53 1.09 1.07 1.03 1.35 1.55 1.16 1.39 

Return on assets................................................. 1.24 1.04 1.25 1.55 1.16 1.14 1.05 1.37 1.57 1.18 1.48 

Return on equity.................................................. 14.66 9.5 12.93 16.76 15.06 15.42 11.53 16.11 17.15 13.45 14.96 

Net charge-offs to loans and leases................... 0.69 0.4 0.47 1.2 0.6 0.81 0.53 0.53 0.82 0.49 0.83 

Loan loss provision to net charge-offs................ 108.1 119.74 123.29 98.47 110.96 101.1 141.45 91.72 110.62 103.54 106.32 

Efficiency ratio..................................................... 60 69.36 62.01 52.87 61.26 61.88 62.74 56.83 55.88 62.91 56.33 

Structural Changes (QTR)

 New charters.................................................... 54 52 1 1 0 5 12 8 7 10 12

 Banks absorbed by mergers............................ 129 63 50 13 3 17 27 29 21 22 13

 Failed banks..................................................... 1 1 0 0 0 0 0 0 0 1 0 

PRIOR FOURTH QUARTERS

 (The way it was . . . ) 

Return on assets (%)........................1996 1.21 0.98 1.28 1.42 1.14 1.17 1.26 1.28 1.39 1.21 1.12 

.........................................1994 1.07 0.98 1.13 1.2 1 0.95 1.09 1.05 1.31 1 1.34 

.........................................1992 0.89 0.81 0.89 0.92 0.88 0.79 0.85 1.05 1.29 1.03 0.74 

Net charge-offs to loans & leases (%) 

.........................................1996 0.64 0.43 0.56 1.01 0.52 0.67 0.53 0.53 0.84 0.47 0.79 

.........................................1994 0.55 0.4 0.49 0.62 0.54 0.74 0.38 0.39 0.56 0.26 0.59 

.........................................1992 1.41 0.8 1.03 1.55 1.6 1.86 1.07 0.8 0.88 0.67 1.79 

Credit Card Loss Rates and Personal 

Bankruptcy Filings 

1984-1997 Net Charge-Off Rate (%) Number of Bankruptcy Filings (Thousands) 7 

Personal 

Bankruptcy

Filings 

400 

6 350 

5 300 

4 250 

3 200 

2 150 

1 100 

0 50 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1234 1 234 1 2 3 4 1 2 3 4 1234 1 2 3 4 1 2 3 4 1 2 3 4 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 Sources: Bankruptcies - Administrative Off ice of the United States Courts Charge-Off Rates - Commercial Bank Call Reports 

Bank Mergers: Acquisitions vs. Consolidations,* 

1985-1997 

Number of Banks Absorbed** 

400 

300 

200 

Acquisitions 

Consolidations 

311 

274 

100 

1985 1986 1987 1988 1989 1990 1991 1992 1993 

* Acquisitions = change in holding company ownership within 12 months of merger.

 Consolidations = no change in ownership within 12 months of merger. 

**Does not include commercial banks merged into savings institutions 

1994 1995 1996 1997 
TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

December 31, 1997 All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 1.33 1.52 1.16 1.20 1.43 1.42 1.31 1.35 1.20 1.60 1.14

 Construction and development............................. 1.42 1.26 1.14 1.45 1.62 1.25 1.17 1.82 1.76 1.56 1.31

 Commercial real estate......................................... 0.97 1.07 0.81 0.93 1.08 1.27 0.88 1.06 0.82 1.02 0.69

 Multifamily residential real estate.......................... 1.12 0.72 0.80 0.97 1.39 1.02 0.93 1.32 1.08 1.34 1.23

 Home equity loans................................................ 0.96 0.90 0.83 0.92 1.01 1.13 0.94 0.93 0.66 0.92 0.89

 Other 1-4 Family residential.................................. 1.59 1.99 1.51 1.39 1.64 1.53 1.61 1.57 1.42 2.08 1.54 

Commercial and industrial loans*........................... 0.83 1.56 1.33 1.06 0.58 0.55 0.82 1.19 1.48 1.15 0.70 

Loans to individuals................................................. 2.48 2.68 2.25 2.57 2.46 2.63 2.43 2.48 2.54 2.19 2.26

 Credit card loans................................................. 2.68 3.05 2.76 2.76 2.63 2.61 3.12 3.06 2.66 2.67 2.42

 Other loans to individuals...................................... 2.33 2.66 2.15 2.37 2.34 2.66 2.14 2.32 2.43 2.15 2.05 

All other loans and leases (including farm)............. 0.51 NA NA 1.12 0.46 0.47 0.51 0.94 0.44 0.35 0.30 

Memo: Commercial RE loans not secured by RE.. 

Percent of Loans Noncurrent** 

0.42 1.87 0.41 0.62 0.39 0.26 0.37 1.17 0.45 0.37 0.33 

All real estate loans................................................. 1.01 0.87 0.77 0.97 1.15 1.46 0.85 0.76 0.63 0.99 1.05

 Construction and development............................. 0.98 0.86 0.77 0.90 1.18 2.19 0.59 0.90 0.73 0.94 1.07

 Commercial real estate......................................... 1.21 0.95 0.88 1.13 1.51 2.22 0.80 0.88 0.70 1.08 1.22

 Multifamily residential real estate.......................... 0.95 0.98 0.82 0.83 1.08 1.13 0.78 0.77 0.42 0.37 1.49

 Home equity loans................................................ 0.44 0.50 0.41 0.44 0.44 0.61 0.36 0.36 0.18 0.29 0.50

 Other 1-4 Family residential.................................. 0.94 0.79 0.72 0.97 1.03 1.12 0.97 0.74 0.58 0.94 1.00 

Commercial and industrial loans*........................... 0.86 1.26 1.19 0.84 0.71 0.87 0.64 0.96 1.24 0.94 0.75 

Loans to individuals................................................. 1.46 0.86 0.78 1.53 1.62 2.06 1.06 1.00 1.68 0.66 1.26

 Credit card loans................................................. 2.14 1.66 1.79 2.09 2.20 2.15 2.07 2.17 2.70 1.96 1.85

 Other loans to individuals...................................... 0.98 0.81 0.59 0.93 1.17 1.95 0.64 0.69 0.64 0.55 0.50 

All other loans and leases (including farm)............. 0.25 NA NA 0.42 0.24 0.23 0.24 0.31 0.30 0.19 0.27 

Memo: Commercial RE loans not secured by RE.. 

Percent of Loans Charged-off (net, YTD) 

0.40 1.03 0.34 0.45 0.39 0.36 0.49 0.39 0.09 0.35 0.49 

All real estate loans................................................. 0.06 0.05 0.06 0.06 0.06 0.10 0.05 0.05 0.02 -0.01 0.08

 Construction and development............................. -0.02 0.03 0.06 0.00 -0.09 0.09 0.00 0.02 0.11 -0.27 -0.12

 Commercial real estate......................................... 0.01 0.05 0.06 0.03 -0.03 0.02 0.01 0.03 -0.04 -0.03 0.03

 Multifamily residential real estate.......................... 0.04 0.21 0.08 0.07 -0.01 0.02 0.01 0.07 0.02 -0.01 0.10

 Home equity loans................................................ 0.16 0.11 0.08 0.18 0.17 0.15 0.10 0.14 0.06 0.74 0.24

 Other 1-4 Family residential.................................. 0.08 0.05 0.06 0.07 0.09 0.11 0.06 0.05 0.04 0.04 0.11 

Commercial and industrial loans*........................... 0.28 0.41 0.42 0.26 0.23 0.20 0.19 0.31 0.64 0.31 0.40 

Loans to individuals................................................. 2.70 0.78 1.38 3.39 2.75 3.15 2.11 2.02 2.89 1.36 3.65

 Credit card loans................................................. 5.11 3.30 4.53 5.51 4.88 4.99 4.78 5.75 4.97 4.57 5.37

 Other loans to individuals...................................... 1.04 0.64 0.79 0.92 1.22 1.12 0.96 0.90 0.79 1.06 1.43 

All other loans and leases (including farm)............. 0.08 NA NA 0.23 0.06 -0.02 0.16 0.21 0.19 0.13 0.09 

Memo: Commercial RE loans not secured by RE.. 

Loans Outstanding (in billions) 

-0.03 2.03 0.26 0.05 -0.07 -0.08 -0.05 0.11 0.03 0.01 -0.04 

All real estate loans................................................. $1,243.9 $88.4 $275.0 $263.4 $617.1 $316.5 $321.1 $241.0 $97.7 $79.3 $188.3

 Construction and development............................. 88.2 6.2 23.9 22.0 36.1 10.6 28.3 17.2 7.7 9.1 15.1

 Commercial real estate......................................... 340.4 23.4 93.9 78.0 145.1 72.8 82.6 69.2 27.2 26.6 61.9

 Multifamily residential real estate.......................... 41.2 2.0 8.8 11.1 19.3 11.8 8.4 8.1 3.2 2.3 7.3

 Home equity loans................................................ 98.1 2.1 13.6 20.4 62.0 24.5 24.9 23.7 4.7 0.8 19.5

 Other 1-4 Family residential.................................. 620.8 44.2 124.5 128.3 323.9 170.8 172.0 116.0 46.0 37.4 78.7 

Commercial and industrial loans............................. 795.9 25.8 79.2 125.1 565.9 301.3 130.2 141.7 46.9 54.5 121.3 

Loans to individuals................................................. 561.4 23.6 68.8 166.2 302.8 197.5 104.5 90.0 49.1 38.3 81.9

 Credit card loans................................................. 231.2 1.2 11.2 85.2 133.6 107.0 31.0 19.3 24.8 3.2 45.9

 Other loans to individuals...................................... 330.2 22.4 57.6 80.9 169.3 90.5 73.5 70.7 24.4 35.1 36.0 

All other loans and leases (including farm)............. 374.0 20.3 24.1 41.3 288.3 153.7 48.9 55.9 30.1 20.5 65.0 

Memo: Commercial RE loans not secured by RE.. 

Memo: Other Real Estate Owned (in millions) 

29.5 0.2 0.9 2.9 25.5 9.1 4.6 3.5 1.9 2.0 8.5 

All other real estate owned..................................... $3,794.0 $350.4 $865.9 $606.5 $1,971.2 $1,349.0 $785.2 $407.2 $214.0 $263.6 $775.0

 Construction and development............................. 433.7 42.8 152.0 88.8 150.1 108.2 152.8 36.5 35.5 20.2 80.5

 Commercial real estate......................................... 1,737.7 150.7 386.9 285.2 914.9 576.9 311.9 198.7 83.3 133.4 433.5

 Multifamily residential real estate.......................... 181.3 10.7 35.4 29.1 106.1 114.8 17.6 9.8 7.0 4.5 27.6

 1-4 Family residential............................................ 1,107.1 113.4 262.0 194.3 537.4 301.9 294.7 156.4 65.5 79.9 208.8

 Farmland............................................................... 95.2 32.8 29.6 8.7 24.2 9.8 8.1 5.8 22.5 25.7 23.2

 Other real estate owned in foreign offices............ 239.1 0.1 0.0 0.4 238.5 237.4 0.1 0.0 0.2 0.0 1.4 

*Includes "All other loans" for institutions under $1 billion in asset size. N/A - Not available 

**Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status. 
SAVINGS INSTITUTION PERFORMANCE — FOURTH QUARTER, 1997 

• Savings Institutions Earn $2.4 Billion In The Fourth Quarter 

• Annual Earnings Of $8.8 Billion Are Highest Ever 

• Equity Capital Reaches Highest Level Since 1943 

• No Thrifts Failed In All Of 1997, The First Year Since 1959 With No Failures 

Savings institutions reported $2.4 billion in earnings 

for the fourth quarter of 1997 for an average annual 

return on assets (ROA) of 0.95 percent. Earnings 

were $352 million higher than in the third quarter, 

primarily because of gains on the sales of securities. 

Gains on securities sales, at $559 million, were 

more than three times the $154 million reported in 

the previous quarter. Strong noninterest income 

also contributed to the earnings improvement. 

Noninterest income was $125 million (7 percent) 

higher than in the third quarter. The ratio of 

noninterest income to earning assets was 0.87 

percent for the fourth quarter, the highest level in 

over two years. In the fourth quarter, 92 percent of 

all savings institutions were profitable and one-third 

had an ROA of 1.00 percent or better. 

Quarterly Net Income, 1993–1997 $ Billions 

4 

3 

2 

1 

0 

-1 

1993 1994 1995 1996 1997 

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 

2.4 

1.7 

1.2 

1.6 

1.3 

1.8 

1.9 

1.6 1.7 1.9 

2.2 

1.8 

2.5 2.6 

-0.0 

2.2 

2.4 2.4 

2.0 

2.4 

Net Operating Income 

Securities and Other Gains, Net 

Full-year net income, at $8.8 billion, was the highest 

ever reported by the thrift industry. The ROA for 

1997, at 0.93 percent, was the highest since 1946. 

Full-year earnings were $1.8 billion higher than in 

1996. Noninterest expense was $4.7 billion lower in 

1997 than in 1996 largely because of the special 

assessment paid by SAIF-insured institutions in the 

third quarter of 1996. Thanks to the capitalization of 

their insurance fund, thrifts with SAIF-insured 

deposits had lower deposit premiums in 1997, 

resulting in pre-tax savings of approximately $800 

million. Taxes were $1.8 billion higher in 1997 

because the special assessment was deductible, 

which kept tax expenses unusually low in 1996. 

Several tax law changes enacted in 1996 increased 

the tax burden on thrifts in 1997. In particular, thrifts 

lost the ability to set aside a bad debt-reserve for tax 

purposes. 

A decline in noncurrent loans pushed the coverage 

ratio to a record of 91 cents in reserves for every $1 

of noncurrent loans. This was the third consecutive 

quarter that this ratio set a new record. Noncurrent 

loans declined by $565 million during the fourth 

quarter. One thrift specializing in bad-debt workouts 

accounted for $239 million of the decline in 

noncurrent loans. Reserves rose by just $27 million 

during the fourth quarter. 

Coverage Ratio and Reserve Levels,* 1993–1997 

$ Billions Coverage Ratio (%) 

30 100 

25 

80 

20 

60 

15 

40 

10 

5 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 20 4 1 2 3 4 

1993 1994 1995 1996 1997 

*Loan-Loss reserves to Noncurrent Loans and Leases. 

The industry’s noncurrent assets and other real estate 

owned (OREO) accounted for less than one percent of 

total assets at year-end. This was the first time that 

less than one percent of assets were nonperforming 

since data became available for this calculation in 

1990. This ratio has improved dramatically from its 

peak at 4.15 percent in early 1991. 

Net charge-offs fell to 0.25 percent of loans in 1997 

from 0.32 percent in 1996. This was the third 

consecutive year with a reduction in net charge-offs. 

The trend began in 1993 when the net-charge-off 

Loan Reserves ($) 

Noncurrent Loans ($) 

Coverage Ratio (%) 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 Fourth Quarter 1997 
rate was 0.65 percent. Net charge-offs improved in 

all loan categories except home equity loans and 

credit-card loans. The net charge-off rate on home 

equity loans rose slightly, by 4 basis points, to 0.22 

percent during 1997. The net charge-off rate on 

credit-card loans increased by nearly one-third, to 

4.98 percent from 3.79 percent in 1996. Credit-card 

loans represent just one percent of thrift assets. 

Annual Net Charge-Off Rates,* 1990–1997 

% of Loans 

3.0 

C&I 

2.0 

Loans to 

Individuals 

1.0 

Real Estate 

0 

1990 1991 1992 1993 1994 1995 1996 1997 

Net interest margins improved to 3.27 percent from 

3.20 percent in the third quarter, even as the yield 

curve flattened. The yield on earning assets grew by 

22 basis points while the cost of funding earning 

assets rose only 15 basis points. Most of the 

improvement occurred at the largest thrifts, those 

with assets of over $5 billion. These institutions 

reported a 46 basis-point improvement in the yield 

on earning assets and a 28 basis-point increase in 

the cost of funding earning assets. Their net interest 

margin increased by 18 basis points to 3.08 percent. 

Quarterly Net Interest Margins, Annualized 

1993–1997 

Net Interest Margin (%) 

4.0 

Assets < $100 Million 3.57% 

3.5 

Assets > $100 Million 3.25% 

3.0 

12341234123412341234 

1993 1994 1995 1996 1997 

The performance of large institutions continues to 

drive the industry’s improvement in controlling 

costs. The efficiency ratio — noninterest expense 

less amortization of intangible assets as a percent of 

net interest income plus noninterest income — 

improved to 57 percent for 1997. This ratio was 

much higher in 1996 (at 66 percent) when the 

special assessment on SAIF-insured deposits 

impacted the thrift industry. In 1995, a more typical 

year, this ratio was 59 percent. Small thrifts, those 

with less than $100 million in assets, have shown 

almost no change in this ratio since 1995. These 

thrifts showed a slight deterioration to almost 71 

percent in 1997 from 70 percent in 1995. All of the 

improvement in 1997 occurred at larger institutions, 

which reported an efficiency ratio of 57 percent in 

1997, down from just below 59 percent in 1995. 

Annual Efficiency Ratios,* 1988–1997 

Efficiency Ratio (%) 

100 

90 

Assets < $100 Million 70.69 

80 

70 

56.53 

60 Assets > $100 Million 

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 

* Noninterest expense less amortization of intangible assets as a percent of net interest 

income plus noninterest income. 

The thrift industry showed very little increase in the 

risk profile of its asset portfolio in 1997. Total assets 

increased during the fourth quarter by $4.4 billion. 

Thrifts increased real estate loans on 1-4 family 

properties by $1.2 billion, while loans secured by 

multifamily properties declined by $874 million. The 

risk weighting of assets, as defined for regulatory 

capital computations, has increased somewhat 

over the past few years, but declined slightly in the 

fourth quarter. Risk-weighted assets (RWA) as a 

percent of total assets rose from a recent low in early 

1995 of 53.8 percent to 56.7 percent at the end of the 

third quarter of 1997, before declining slightly to 

56.6 percent at year-end. The return on RWA for 

thrifts was 1.62 during the fourth quarter, up from 

1.38 percent in the third quarter. Thrifts tend to keep 

a larger percentage of their portfolio in lower-risk 

assets than commercial banks. 

Savings institutions increased their use of nondeposit borrowings in the fourth quarter. All nondeposit borrowings grew by $5.8 billion during the 

fourth quarter, while deposits declined by $2.3 

FDIC Quarterly Banking Profile 

Fourth Quarter 1997 9 FDIC-Insured Savings Institutions 
 

0 

Quarterly Return on Risk-Weighted Assets (RWA),* 

and RWA to Total Assets, 1991–1997 

Return on RWA (%) RWA to Assets (%) 

2.0 

123412 3 412 3 412341 2 34123 4 1234 

Return on 

Risk-Weighted 

Assets 

Risk-Weighted 

Assets 

to Assets 

62 

1.5 60 

1.0 58 

0.5 56 

54 

1991 1992 1993 1994 1995 1996 1997 

* Assets weighted according to risk categories used in regulatory capital computations. 

billion. For institutions that file a Thrift Financial 

Report, Federal Home Loan Bank advances rose by 

$11.9 billion during the quarter. 

Equity capital rose by $1.2 billion during the quarter 

to 8.71 percent of assets. This was the highest 

capital ratio since 1943. The return on equity (ROE) 

reached 10.90 percent for all of 1997. This was the 

highest annual ROE reported by thrifts since 1985 

when equity capital was just 3.52 percent of industry 

assets. The ROE for that year was 13.91 percent. 

The number of savings institutions declined by 33 

during the fourth quarter to 1,779 institutions. 

Commercial banks absorbed 28 savings institutions 

with $15.8 billion in assets. In 1997, the commercial 

banking industry absorbed 116 savings institutions 

with $75 billion in assets. Tax law changes in late 

1996 made acquiring thrifts much less costly. 

Savings institutions absorbed five commercial banks 

with $795 million in assets, and three commercial 

banks, with $562 million in assets, converted to thrift 

charters. Just 11 thrifts were acquired by other thrifts 

during the fourth quarter. Three new savings 

institutions opened during the fourth quarter for a 

total of 12 new thrifts during the year. There were 21 

mutual-to-stock conversions during the fourth 

quarter involving $4.6 billion in assets. No thrifts 

failed in 1997, the first calendar year since 1959 with 

no thrift failures. Only one thrift failed in 1996 and by 

the end of 1997, the industry had 16 consecutive 

months without a thrift failure. The number of 

‘problem’ savings institutions declined during the 

fourth quarter to 21 from 27 at the end of the third 

quarter. Assets of ‘problem’ thrifts fell to $1.7 billion 

from $2.0 billion at the end of September. 

Noncurrent Loan Rates by State,* December 31, 1997 

Between .75% and 1.5% 

Less than .75% 

Greater than 1.5% 

Alabama 

0.8 Alaska 

0.3 

Arizona 

0.2 

Arkansas 

1.0 

California 

1.1 

Colorado 

0.2 

CT: 1.1 

DE: 1.0 

DC: 1.3 

FL 

0.8 

Georgia 

1.0 

Hawaii 

2.1 

Idaho 

0.2 

Illinois 

1.1 

IN 

0.9 

Iowa 

1.2 

Kansas 

0.3 Kentucky 

0.6 

LA 

0.5 

Maine 

1.0 

MD: 2.0 

Michigan MA: 0. 7

0.7 

Minnesota 

0.5 

MS 

1.4 

Missouri 

0.6 

Montana 

0.4 

Nebraska 

Nevada 0. 7

NA 

NH: 0.7 

NJ: 4.6 

New 

Mexico 

0.8 

NY 

1.5 

N. Carolina 

0.6 

North 

Dakota 

0.3 

Ohio 

0.7 

Oklahoma 

0.6 

Oregon 

0.6 

Pennsylvania 

0.9 

RI: 1.4 

S. Carolina 

0.6 

South 

Dakota 

0.4 

Tennessee 

0.6 

Texas 

1.3 

Utah 

1.2 

: 1.8 

Virginia 

1.3 

Washington 

0.5 

WV 

1.3 

Wisconsin 

0.5 

Wyoming 

0.7 

Puerto 

Rico 

6.6 

Northeast 

Southeast 

Central 

Southwest 

Midwest 

West 

* Noncurrent loan rates represent the percentage of loans that 

are past due 90 days or more or in nonaccrual status. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Fourth Quarter 1997 
TABLE I-B. Selected Indicators, FDIC-Insured Savings Institutions*

Return on assets (%).............................................. 0.93 0.70 0.77 0.66 0.70 0.65 0.08 

Return on equity (%)............................................... 10.90 8.40 9.40 8.28 9.24 9.48 1.26 

Core capital (leverage) ratio (%)............................. 7.96 7.76 7.80 7.65 7.45 6.77 5.54 

Noncurrent assets plus

 other real estate owned to assets (%).................. 0.95 1.09 1.20 1.38 2.10 3.07 3.96 

Net charge-offs to loans (%)................................... 0.25 0.32 0.34 0.51 0.65 0.59 0.65 

Asset growth rate (%).............................................. -0.20 0.25 1.70 0.77 -2.85 -7.44 -11.61 

Net interest margin (%)........................................... 3.23 3.22 3.09 3.34 3.48 3.40 2.76 

Net operating income growth (%)........................... 20.79 -13.99 13.81 22.24 21.21 574.61 82.18 

Number of institutions............................................. 1,779 1,924 2,030 2,152 2,262 2,390 2,561 

Percentage of unprofitable institutions.................... 3.88 11.95 5.86 6.97 5.88 7.57 18.35 

Number of problem institutions............................... 21 35 49 71 146 276 410 

Assets of problem institutions (in billions)............... $2 $7 $14 $39 $92 $183 $291 

Number of failed/assisted institutions..................... 0 1 2 4 8 81 163 

 1997 1996 1995 1994 1993 1992 1991 

TABLE II-B. Aggregate Condition and Income Data, FDIC-Insured Savings Institutions* 

(dollar figures in millions) 

Number of institutions reporting.............................................. 

Total employees (full-time equivalent).................................... 

CONDITION DATA 

Total assets............................................................................. 

 Loans secured by real estate............................................ 

 1-4 Family residential...................................................... 

 Multifamily residential property........................................ 

 Commercial real estate................................................... 

 Construction, development and land............................... 

 Commercial & industrial loans........................................... 

 Loans to individuals........................................................... 

 Other loans & leases......................................................... 

 Less: Unearned income & contra accounts***.................. 

 Total loans & leases............................................................ 

 Less: Reserve for losses..................................................... 

 Net loans & leases................................................................ 

 Securities............................................................................... 

 Other real estate owned........................................................ 

 Goodwill and other intangibles.............................................. 

 All other assets...................................................................... 

Total liabilities and capital....................................................... 

 Deposits................................................................................ 

 Other borrowed funds............................................................ 

 Subordinated debt................................................................. 

 All other liabilities................................................................... 

 Equity capital......................................................................... 

Loans and leases 30-89 days past due.................................. 

Noncurrent loans and leases.................................................. 

Restructured loans and leases................................................ 

Direct and indirect investments in real estate......................... 

Mortgage-backed securities.................................................... 

Earning assets......................................................................... 

FHLB Advances (TFR filers only)............................................ 

Unused loan commitments...................................................... 

Preliminary 

4th Quarter 

1997 

3rd Quarter 4th Quarter 

1997 1996 

%Change 

96:4-97:4 

1,779 

244,830 

$1,026,219 

631,859 

506,980 

57,612 

47,509 

19,758 

16,209 

47,677 

3,215 

215 

698,744 

6,967 

691,777 

248,673 

2,084 

10,999 

72,686 

1,026,219 

704,115 

216,256 

2,935 

13,516 

89,396 

8,135 

7,652 

3,381 

596 

180,601 

959,671 

118,620 

111,548 

1,812 1,924 

245,040 252,759 

$1,021,858 $1,028,289 

631,451 637,183 

505,750 502,074 

58,486 59,490 

47,641 50,183 

19,574 25,437 

16,092 14,853 

48,935 44,928 

3,021 2,328 

227 10,480 

699,271 688,812 

6,940 7,483 

692,331 681,329 

247,413 262,356 

2,205 2,413 

10,381 8,226 

69,528 73,965 

1,021,858 1,028,289 

706,429 727,920 

210,477 200,911 

2,931 2,401 

13,828 11,267 

88,193 85,790 

7,870 9,240 

8,217 8,840 

3,574 4,627 

582 592 

182,243 193,072 

957,540 963,276 

106,762 103,427 

110,485 96,357 

-7.5 

-3.1 

-0.2

-0.8

1.0

-3.2

-5.3

-22.3

9.1

6.1

38.1

N/M

1.4

-6.9

1.5

-5.2

-13.6

33.7

-1.7 

-0.2

-3.3

7.6

22.3

20.0

4.2 

-12.0 

-13.4 

-26.9 

0.7 

-6.5 

-0.4 

14.7 

15.8 

INCOME DATA 

Total interest income............................................. 

Total interest expense........................................... 

 Net interest income............................................. 

Provision for loan losses....................................... 

Total noninterest income....................................... 

Total noninterest expense..................................... 

Securities gains (losses)....................................... 

Applicable income taxes....................................... 

Extraordinary gains, net ....................................... 

 Net income.......................................................... 

Net charge-offs...................................................... 

Cash dividends...................................................... 

 Net operating income.......................................... 

Preliminary 

Full Year 

1997 

Full Year 

1996 

Preliminary 

4th Quarter 4th Quarter 

%Change 1997 1996 

%Change 

96:4-97:4 

$69,180 

40,563 

28,617 

2,159 

7,033 

21,047 

1,260 

4,863 

(5) 

8,837 

1,569 

4,866 

7,923 

$72,270 

42,171 

30,100 

2,534 

7,493 

25,700 

941 

3,036 

(246) 

7,017 

2,113 

5,810 

6,560 

-4.3 $18,632 $18,588 

-3.8 11,046 10,831 

-4.9 7,586 7,757 

-14.8 585 868 

-6.1 2,029 1,959 

-18.1 5,907 5,938 

33.9 559 267 

60.2 1,330 1,024 

N/A (1) 0 

25.9 2,352 2,155 

-25.8 399 606 

-16.2 1,645 1,697 

20.8 1,950 1,959 

0.2 

2.0

-2.2 

-32.6 

3.6 

-0.5 

109.5 

29.9 

N/A

9.2 

-34.1 

-3.1

-0.5 

*Data between 1991 and 1995 do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. N/M - Not Meaningful 

***Prior to 1997, includes contra accounts such as loans in process and unamortized yield adjustments for TFR filers.

 Beginning March 31, 1997, includes only unearned income reported by Call Report filers. 
 

 

 

 

 

 

TABLE III-B. Full Year 1997, FDIC-Insured Savings Institutions 

FULL YEAR Preliminary 

 (The way it is . . . ) 

Number of institutions reporting.................. 

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,779 764 858 122 35 687 254 461 133 118 126 

Total assets (in billions).............................. $1,026.2 $39.9 $250.4 $239.8 $496.1 $342.8 $64.9 $174.1 $33.5 $64.0 $346.8 

Total deposits (in billions)........................... 704.1 32.8 196.4 164.1 310.8 257.0 48.1 124.9 24.1 39.9 210.2 

Net income (in millions)............................... 8,836.5 295.1 2,297.7 2,449.9 3,793.8 3,250.1 529.1 1,501.2 327.0 643.7 2,585.3 

% of unprofitable institutions....................... 3.9 6.3 2.1 1.6 2.9 2.3 8.3 2.2 2.3 9.3 6.3 

% of institutions with earnings gains........... 

Performance Ratios (%) 

89.0 87.0 90.8 90.2 85.7 85.4 88.6 94.1 92.5 88.1 88.1 

Yield on earning assets............................... 7.80 7.85 7.89 7.95 7.68 7.71 8.12 7.72 7.81 8.14 7.82 

Cost of funding earning assets................... 4.57 4.30 4.36 4.57 4.72 4.21 4.55 4.66 4.80 4.91 4.84 

Net interest margin...................................... 3.23 3.56 3.53 3.37 2.96 3.49 3.58 3.06 3.01 3.23 2.98 

Noninterest income to earning assets........ 0.79 0.89 0.63 0.96 0.79 0.60 1.50 0.92 0.73 1.13 0.72 

Noninterest expense to earning assets...... 2.37 3.17 2.57 2.56 2.10 2.38 3.47 2.40 2.08 2.56 2.12 

Loan loss provision to assets............... 0.23 0.11 0.16 0.28 0.25 0.17 0.41 0.24 0.12 0.33 0.24 

Net operating income to assets.................. 0.84 0.68 0.88 0.90 0.80 0.91 0.65 0.76 0.92 1.01 0.79 

Return on assets......................................... 0.93 0.76 0.96 1.07 0.87 1.00 0.87 0.91 1.01 1.03 0.86 

Return on equity.......................................... 10.90 6.53 9.28 12.71 11.67 10.64 8.88 10.11 10.95 12.64 11.94 

Net charge-offs to loans and leases........... 0.25 0.10 0.17 0.34 0.26 0.22 0.47 0.24 0.07 0.43 0.22 

Loan loss provision to net charge-offs........ 137.66 162.35 140.90 128.36 141.64 129.91 126.55 141.21 255.65 122.11 148.90 

Efficiency ratio............................................. 

Condition Ratios (%) 

57.18 70.69 60.94 57.49 53.23 56.26 66.98 57.36 54.74 57.72 55.61 

Earning assets to total assets.................. 

Loss allowance to:

93.52 94.42 94.63 92.87 93.19 94.01 92.34 93.29 94.88 91.62 93.57 

 Loans and leases...................................... 1.00 0.76 0.89 1.15 1.00 1.08 1.06 0.78 0.69 0.91 1.06

 Noncurrent loans and leases.................... 

Noncurrent assets plus

91.05 72.70 92.11 71.80 106.60 71.08 124.27 100.48 109.84 80.57 109.38 

 other real estate owned to assets............. 0.95 0.87 0.84 1.31 0.84 1.12 0.86 0.67 0.57 1.10 0.95 

Noncurrent RE loans to RE loans............... 1.10 1.03 0.95 1.63 0.96 1.58 0.73 0.72 0.55 1.22 0.99 

Equity capital ratio....................................... 8.71 11.93 10.49 8.75 7.54 9.62 10.15 9.20 9.45 8.35 7.29 

Core capital (leverage) ratio........................ 7.96 11.57 9.94 8.06 6.61 8.73 9.42 8.20 9.12 7.94 6.70 

Gross real estate assets to gross assets.... 78.88 71.30 73.82 75.70 83.58 74.00 72.10 78.01 76.59 71.52 86.98 

Gross 1-4 family mortgages to gr. assets... 49.06 52.02 47.94 40.29 53.63 43.76 46.36 53.76 54.27 36.56 54.25 

Net loans and leases to deposits................ 

Structural Changes (YTD)

98.25 82.90 85.75 91.92 111.11 81.79 91.74 98.74 100.12 102.14 118.60 

 New charters............................................ 12 12 0 0 0 2 6 0 1 2 1

 Thrifts absorbed by mergers.................... 127 44 65 14 4 39 21 31 11 9 16

 Failed thrifts.............................................. 

PRIOR FULL YEAR*

 (The way it was . . . ) 

0 0 0 0 0 0 0 0 0 0 0 

Number of institutions.......................1996 1,924 844 919 125 36 730 278 499 145 129 143 

.......................................1994 2,152 996 992 133 31 786 343 547 160 141 175 

.......................................1992 2,390 1,109 1,094 158 29 852 416 590 176 154 202 

Total assets (in billions).....................1996 $1,028.3 $43.7 $270.1 $258.3 $456.2 $345.4 $63.2 $175.7 $50.3 $78.3 $315.3 

.......................................1994 1,008.6 50.4 286.0 292.2 379.9 330.9 82.1 155.5 53.1 70.8 316.1 

.......................................1992 1,030.2 55.9 316.2 325.3 332.7 341.2 109.0 150.5 49.5 61.4 318.7 

Return on assets (%)........................1996 0.70 0.45 0.66 0.82 0.69 0.84 0.52 0.70 0.56 1.57 0.40 

.......................................1994 0.66 0.79 0.77 0.82 0.43 0.89 0.84 0.76 0.40 0.97 0.30 

.......................................1992 

Net charge-offs to loans & leases (%) 

0.65 0.86 0.81 0.67 0.47 0.59 0.77 0.89 1.10 1.55 0.34 

.......................................1996 0.32 0.10 0.17 0.33 0.43 0.32 0.38 0.14 0.15 0.32 0.44 

.......................................1994 0.51 0.10 0.23 0.49 0.79 0.49 0.16 0.11 0.15 0.29 0.86 

.......................................1992 

Noncurrent assets plus 

0.59 0.23 0.37 0.67 0.76 0.89 0.38 0.20 0.21 0.34 0.60 

OREO to assets (%)**...........1996 1.09 0.96 0.99 1.25 1.08 1.26 0.99 0.65 0.67 1.11 1.25 

.......................................1994 1.38 1.08 1.24 1.47 1.46 1.83 1.07 0.50 0.61 1.37 1.56 

.......................................1992 3.07 1.83 2.35 3.12 3.92 3.81 2.43 0.99 1.24 3.92 3.60 

Equity capital ratio (%)......................1996 8.34 11.39 9.95 8.29 7.13 9.12 9.44 8.69 8.71 8.10 7.09 

.......................................1994 7.93 9.94 9.02 8.10 6.70 8.51 8.59 8.75 7.71 7.01 6.97 

.......................................1992 7.22 8.47 7.71 7.12 6.62 7.26 7.48 7.89 7.05 6.32 6.96 

*Data between 1992 and 1995 do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 

**Beginning with June 1996, TFR filers report noncurrent loans net of specific reserves. Accordingly, specific reserves have been subtracted from loan-loss

 reserves, beginning with June 1996, to make the ratio more closely comparable to prior periods. 
 

 

 

 

 

 

TABLE IV-B. Fourth Quarter 1997, FDIC-Insured Savings Institutions 

FOURTH QUARTER Preliminary 

 (The way it is . . . ) 

Number of institutions reporting.................. 

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,779 764 858 122 35 687 254 461 133 118 126 

Total assets (in billions).............................. $1,026.2 $39.9 $250.4 $239.8 $496.1 $342.8 $64.9 $174.1 $33.5 $64.0 $346.8 

Total deposits (in billions)........................... 704.1 32.8 196.4 164.1 310.8 257.0 48.1 124.9 24.1 39.9 210.2 

Net income (in millions)............................... 2,351.9 62.1 553.3 697.5 1,039.0 845.0 121.1 280.9 81.6 235.4 787.8 

% of unprofitable institutions....................... 8.0 12.6 5.0 1.6 5.7 7.4 12.2 6.3 5.3 12.7 7.9 

% of institutions with earnings gains........... 

Performance Ratios (annualized, %) 

53.6 44.6 58.4 71.3 71.4 53.9 52.0 52.7 54.9 48.3 62.7 

Yield on earning assets............................... 8.02 7.95 7.97 7.96 8.09 7.80 8.09 7.98 7.84 8.23 8.24 

Cost of funding earning assets................... 4.76 4.37 4.44 4.64 5.02 4.32 4.60 4.87 4.86 5.00 5.13 

Net interest margin...................................... 3.27 3.57 3.52 3.32 3.08 3.49 3.49 3.11 2.98 3.23 3.11 

Noninterest income to earning assets........ 0.87 1.04 0.69 0.95 0.92 0.71 1.59 0.91 0.76 1.19 0.84 

Noninterest expense to earning assets...... 2.54 3.45 2.76 2.62 2.31 2.53 3.66 2.75 2.12 2.73 2.24 

Loan loss provision to assets............... 0.24 0.13 0.20 0.26 0.25 0.17 0.47 0.36 0.13 0.21 0.21 

Net operating income to assets.................. 0.79 0.54 0.77 0.86 0.78 0.89 0.50 0.44 0.89 1.06 0.85 

Return on assets......................................... 0.95 0.63 0.89 1.18 0.89 1.00 0.76 0.66 0.98 1.48 0.97 

Return on equity.......................................... 10.89 5.27 8.56 13.65 11.74 10.49 7.62 7.13 10.50 17.66 13.34 

Net charge-offs to loans and leases........... 0.24 0.08 0.22 0.34 0.21 0.23 0.46 0.24 0.11 0.54 0.16 

Loan loss provision to net charge-offs........ 146.52 240.45 132.64 120.24 170.40 122.16 147.43 207.76 159.58 60.41 178.16 

Efficiency ratio............................................. 

Structural Changes (QTR)

59.45 73.84 64.44 59.69 55.06 58.44 69.81 65.07 55.90 60.71 55.03 

 New charters............................................ 3 3 0 0 0 1 2 0 0 0 0

 Thrifts absorbed by mergers.................... 30 15 8 6 1 7 8 5 3 2 5

 Failed thrifts.............................................. 

PRIOR FOURTH QUARTERS*

 (The way it was . . . ) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%)........................1996 0.84 0.81 0.91 1.08 0.67 0.98 0.85 1.06 0.63 1.02 0.57 

.......................................1994 0.65 0.69 0.63 0.80 0.55 0.80 0.70 0.72 -0.08 1.01 0.51 

.......................................1992 

Net charge-offs to loans & leases (%) 

0.59 0.83 0.77 0.73 0.26 0.63 0.69 0.90 1.33 1.60 0.07 

.......................................1996 0.36 0.12 0.21 0.37 0.45 0.38 0.43 0.15 0.17 0.32 0.47 

.......................................1994 0.45 0.11 0.27 0.44 0.63 0.47 0.13 0.12 0.32 0.28 0.70 

.......................................1992 0.69 0.24 0.42 0.73 0.96 1.05 0.36 0.21 0.26 0.49 0.73 

*Data between 1992 and 1994 does not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 
TABLE V-B. Loan Performance, FDIC-Insured Savings Institutions 

December 31, 1997 All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 1.08 1.99 1.28 1.05 0.93 1.13 1.30 1.07 1.43 1.71 0.90

 Construction, development and land.................... 1.54 2.33 1.66 2.02 0.86 1.07 1.89 2.24 2.42 1.29 0.99

 Commercial real estate......................................... 1.06 1.78 1.16 1.10 0.80 1.07 1.48 1.34 1.92 1.11 0.68

 Multifamily residential real estate.......................... 0.44 1.49 0.77 0.46 0.31 0.58 1.29 0.59 1.15 0.47 0.32

 Home equity loans................................................ 0.69 0.78 0.93 0.67 0.52 0.93 0.40 0.63 0.70 0.45 0.42

 Other 1-4 Family residential.................................. 1.16 2.05 1.33 1.12 1.03 1.20 1.26 1.06 1.37 1.99 1.03 

Commercial and industrial loans............................. 1.42 2.53 1.70 1.63 0.73 1.40 2.24 1.73 1.99 0.95 1.06 

Loans to individuals................................................. 2.19 2.57 2.05 2.45 2.08 2.32 3.32 2.06 2.09 1.54 2.11

 Credit card loans................................................... 1.92 0.93 2.93 2.35 1.63 1.39 4.15 2.27 2.47 0.84 2.88

 Other loans to individuals...................................... 

Percent of Loans Noncurrent* 

2.28 2.65 1.92 2.48 2.31 2.51 2.89 1.99 2.07 2.33 2.00 

All real estate loans................................................. 1.10 1.03 0.95 1.63 0.96 1.58 0.73 0.72 0.55 1.22 0.99

 Construction, development and land.................... 1.26 1.47 1.35 1.22 1.13 1.65 1.07 1.70 0.76 0.87 0.99

 Commercial real estate......................................... 1.62 1.42 1.15 2.14 1.66 2.14 0.69 0.83 0.79 1.63 1.47

 Multifamily residential real estate.......................... 0.94 1.15 1.21 1.68 0.46 1.84 0.89 0.73 0.81 3.71 0.47

 Home equity loans................................................ 0.35 0.39 0.44 0.36 0.27 0.47 0.16 0.33 0.26 0.13 0.24

 Other 1-4 Family residential.................................. 1.09 0.97 0.90 1.62 0.99 1.52 0.71 0.69 0.51 1.00 1.07 

Commercial and industrial loans............................. 1.23 1.72 1.48 1.51 0.63 1.53 1.09 0.92 2.46 1.07 0.75 

Loans to individuals................................................. 1.01 1.05 1.04 1.52 0.69 0.85 1.82 1.31 1.03 0.84 0.57

 Credit card loans................................................... 1.65 0.45 2.33 3.15 1.09 1.07 3.11 3.19 1.09 0.59 1.20

 Other loans to individuals...................................... 0.80 1.08 0.85 1.16 0.48 0.81 1.17 0.75 1.03 1.12 0.47 

Percent of Loans Charged-off (net) 

All real estate loans................................................. 0.12 0.05 0.08 0.13 0.14 0.15 0.05 0.04 -0.02 0.08 0.17

 Construction, development and land.................... 0.10 0.17 0.15 0.09 0.02 0.15 0.11 0.09 0.14 0.03 0.07

 Commercial real estate......................................... 0.07 0.08 0.14 0.07 -0.03 0.13 0.11 0.05 0.00 0.10 -0.04

 Multifamily residential real estate.......................... 0.17 0.06 0.16 0.25 0.14 0.18 0.03 0.02 0.10 0.04 0.21

 Home equity loans................................................ 0.22 0.11 0.17 0.24 0.25 0.16 0.08 0.12 0.27 0.19 0.54

 Other 1-4 Family residential.................................. 0.11 0.04 0.06 0.12 0.15 0.15 0.03 0.03 -0.04 0.09 0.17 

Commercial and industrial loans............................. 0.38 0.78 0.55 0.37 0.20 0.35 0.72 0.35 0.60 0.59 0.21 

Loans to individuals................................................. 1.93 0.52 1.28 2.52 2.01 1.17 3.48 2.60 0.77 1.86 1.68

 Credit card loans................................................... 4.98 1.17 5.65 8.87 3.95 3.41 7.79 9.84 3.99 2.11 5.16

 Other loans to individuals...................................... 

Loans Outstanding (in billions) 

0.93 0.50 0.58 1.44 0.79 0.67 1.14 0.68 0.65 1.59 1.21 

All real estate loans................................................. $630.7 $24.8 $153.7 $133.0 $319.3 $189.6 $37.6 $110.6 $21.5 $32.1 $239.3

 Construction, development and land.................... 19.6 1.1 7.8 4.7 6.0 4.1 3.4 4.1 0.9 3.5 3.7

 Commercial real estate......................................... 47.2 2.0 16.3 14.5 14.4 21.2 3.6 5.8 1.5 3.0 12.2

 Multifamily residential real estate.......................... 57.5 0.8 9.3 16.5 30.9 13.3 0.8 6.6 0.8 2.1 33.9

 Home equity loans................................................ 17.5 0.6 5.3 4.3 7.3 7.0 1.4 4.6 0.5 0.3 3.6

 Other 1-4 Family residential.................................. 488.8 20.2 114.9 93.0 260.6 144.0 28.4 89.4 17.8 23.2 185.9 

Commercial and industrial loans............................. 16.2 0.7 4.2 5.6 5.7 7.3 1.3 2.4 0.5 1.4 3.5 

Loans to individuals................................................. 47.5 1.8 10.4 12.9 22.4 14.0 4.8 10.5 2.2 7.4 8.6

 Credit card loans................................................... 11.4 0.1 1.4 2.3 7.7 2.4 1.6 2.4 0.1 3.9 1.1

 Other loans to individuals...................................... 

Memoranda: 

Other Real Estate Owned (in millions)** 

36.1 1.7 9.1 10.6 14.7 11.7 3.2 8.1 2.2 3.5 7.5 

All other real estate owned..................................... $2,079.3 $59.5 $437.8 $680.1 $901.9 $589.0 $171.9 $206.0 $39.6 $239.5 $833.2

 Construction, development and land.................... 234.7 7.1 75.4 47.3 105.0 60.4 116.9 14.2 10.4 8.5 24.2

 Commercial real estate......................................... 376.9 11.4 94.9 196.9 73.8 157.5 23.4 52.3 7.6 57.9 78.3

 Multifamily residential real estate.......................... 315.7 3.1 35.7 179.7 97.2 59.1 3.9 9.7 3.1 114.9 125.0

 1-4 Family residential............................................ 

Troubled Real Estate Asset Rates***

 (% of total RE assets) 

1,205.2 39.1 242.4 271.8 651.9 327.5 45.1 132.9 20.5 60.4 618.7 

All real estate loans................................................. 1.43 1.26 1.23 2.13 1.24 1.88 1.18 0.91 0.73 1.95 1.33

 Construction, development and land.................... 2.42 2.07 2.29 2.21 2.83 3.08 4.40 2.04 1.89 1.11 1.63

 Commercial real estate......................................... 2.41 2.00 1.72 3.48 2.16 2.88 1.34 1.71 1.29 3.53 2.09

 Multifamily residential real estate.......................... 1.48 1.55 1.59 2.74 0.77 2.27 1.34 0.87 1.20 8.80 0.83

 1-4 Family residential............................................ 1.30 1.14 1.07 1.84 1.21 1.68 0.84 0.81 0.62 1.24 1.38 

*Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status. 

**TFR filers report "All other real estate owned" net of valuation allowances, while individual categories of OREO are reported gross. 

***Noncurrent real estate loans plus other real estate owned as a percent of total real estate loans plus OREO. 
ALL FDIC-INSURED INSTITUTIONS 

• One Institution Fails In The Fourth Quarter, The Only Failure Of 1997 

• Total Assets Of Insured Institutions Surpass $6 Trillion For The First Time 

• BIF Reserve Ratio Remains At 1.38 Percent; SAIF Rises To 1.36 Percent 

Reflecting consolidation in both the banking and thrift industries, the number of FDIC-insured institutions fell below 11,000 for the first time, to 10,922. The total assets of 

these institutions surpassed $6 trillion, having reached 

$5 trillion at year-end 1994. Total assets rose $150 billion from September 30 to December 31, an increase of 

2.5 percent, which is somewhat greater than the 2.1 percent increase recorded in the fourth quarter of 1996. Total deposits increased $114 billion during the fourth 

quarter, with most of the growth occurring in large, uninsured deposits and foreign-office deposits. Insured deposits rose just $34 billion during the period. For the full 

year, total deposits increased 6.1 percent, and insured 

deposits grew 3.1 percent. This development mirrors a 

longer-term trend in which depository institutions are relying less on insured deposits and more on uninsured 

deposits and nondeposit funding. For all FDIC-member 

institutions, insured deposits now represent less than 

half of all liabilities, falling to 49.6 percent as of December 31 from more than 60 percent earlier in the 1990s. 

For BIF members, this ratio has fallen to 46.8 percent 

from 59 percent in 1992, and for SAIF members, insured 

deposits comprise 68.8 percent of liabilities, down from 

80 percent in 1993. 

One commercial bank, with total assets of $27 million, 

failed in November. This was the only Bank Insurance 

Fund (BIF) member to fail in 1997, the lowest annual total since 1962, when there also was a single bank failure. 

Among members of the Savings Association Insurance 

Fund (SAIF), there were no failures in 1997, the first year 

since 1959 in which no savings association failed. On a 

combined basis, 1997 was the first year since 1946 with 

only one federally insured bank or thrift failure. 

The BIF grew to $28.3 billion (unaudited) on December 

31, from $28.0 billion on September 30. BIF-insured deposits grew at a comparable rate during the fourth quarInsurance Fund Reserve Ratios* 

Percent of Insured Deposits 

12/91 12/92 12/93 12/94 12/95 12/96 3/97 6/97 9/97 12/97 

-0.36 

-0.01 

0.69 

1.15 

1.30 1.34 1.34 1.35 1.38 1.38 

0.01 0.04 

0.17 

0.28 

0.47 

1.30 1.31 1.32 1.35 1.36 

0 

1.25 

SAIF 

BIF 

Target Ratio 

ter, to $2.056 trillion, leaving the fund’s reserve ratio 

unchanged at 1.38 percent. The balance of the SAIF increased from $9.25 billion to $9.37 billion (unaudited) 

during the quarter, and SAIF-insured deposits grew at 

a slightly slower pace, to $690 billion at the end of 1997. 

As a result, the reserve ratio of the SAIF edged upward, 

from 1.35 percent to 1.36 percent. The near-term prospects for both insurance funds remain quite favorable, 

and investment income is expected to be sufficient to 

meet expenses. More than 95 percent of BIF members 

and 90 percent of SAIF members are paying no deposit 

insurance premiums for the first half of 1998. 

Oakars and Sassers. Oakar deposits are those acquired by a member of one insurance fund from a member of the other fund. These deposits remain insured by 

the seller’s fund. Sasser institutions are former SAIFmember savings associations that convert to a commercial or savings bank charter. By remaining members of the SAIF, they avoid costly exit and entrance 

fees. On December 31, 789 BIF members held $246 

billion in SAIF-assessable deposits, up from $235 billion on September 30 and $217 billion at year-end 

1996. BIF members now hold 34.1 percent of the SAIF 

assessment base, compared to 30.7 percent at the end 

of 1996. At year-end 1997, 116 SAIF members held 

$33 billion in BIF-assessable deposits, up from $27 billion on September 30 but still just 1.2 percent of the total BIF assessment base. 

There were 340 Sasser banks on December 31, a decrease of one since the end of the third quarter, as 10 

newly converted Sassers were offset by 11 that were 

acquired. About two-thirds of all Sassers are statechartered savings banks, but of the 10 newly converted 

Sassers in the fourth quarter, seven became commercial banks and three became savings banks. Sassers 

currently hold $68.2 billion in SAIF-assessable deposits, or 9.5 percent of the total SAIF assessment base. 

Fund Balance and Insured Deposits* 

($ Millions) 

BIF Fund BIF-Insured SAIF Fund SAIF-Insured 

Balance Deposits Balance Deposits 

12/91 -7,028 1,957,722 101 776,351 

12/92 -101 1,945,550 279 732,159 

12/93 13,122 1,905,245 1,157 697,885 

12/94 21,848 1,895,258 1,937 693,610 

12/95 25,454 1,951,963 3,358 711,897 

12/96 26,854 2,007,042 8,888 683,403 

3/97 27,042 2,024,439 9,010 688,229 

6/97 27,389 2,022,745 9,134 690,220 

9/97 27,967 2,027,966 9,253 683,926 

12/97 28,293 2,055,874 9,368 690,132 

* Insured deposit amounts are estimates. 1997 fund balances are unaudited . *Insurance fund balance as a percent of total insured deposits. 

FDIC Quarterly Banking Profile 

Fourth Quarter 1997 15 All FDIC-Insured Institutions 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Estimated FDIC-Insured Deposits by Fund Membership and Type of Institution 

 December 31, 1997 

(dollar figures in millions) Number of 

Institutions 

Total 

Assets 

Domestic

Deposits* 

 Estimated Insured Deposits 

BIF SAIF Total 

Commercial Banks and Savings Institutions

 FDIC-Insured Commercial Banks.......................................... 9,143 5,014,884 2,895,501 1,874,392 215,944 2,090,336

 BIF-member...................................................................... 9,037 4,959,219 2,855,377 1,862,930 193,177 2,056,107

 SAIF-member.................................................................... 106 55,666 40,124 11,462 22,766 34,229

 FDIC-Supervised............................................................... 5,553 889,686 670,187 478,586 46,326 524,912

 OCC-Supervised............................................................... 2,598 2,893,989 1,685,376 1,090,933 135,979 1,226,912

 Federal Reserve-Supervised............................................. 992 1,231,209 539,939 304,874 33,639 338,513

 FDIC-Insured Savings Institutions......................................... 1,779 1,026,219 704,115 180,170 474,188 654,358

 OTS-Supervised Savings Institutions................................ 1,214 777,591 516,829 60,126 420,630 480,756

 BIF-member................................................................... 35 132,674 83,367 41,273 37,466 78,739

 SAIF-member................................................................. 1,179 644,917 433,462 18,853 383,165 402,018

 FDIC-Supervised State Savings Banks............................. 565 248,628 187,287 120,044 53,558 173,602

 BIF-member................................................................... 331 191,170 144,542 118,913 14,182 133,095

 SAIF-member................................................................. 234 57,457 42,745 1,131 39,375 40,506 

Total Commercial Banks and

 Savings Institutions......................................................... 10,922 6,041,103 3,599,617 2,054,562 690,132 2,744,694

 BIF-member.......................................................................... 9,403 5,283,063 3,083,286 2,023,116 244,825 2,267,942

 SAIF-member........................................................................ 1,519 758,039 516,331 31,446 445,306 476,753 

Other FDIC-Insured Institutions

 U.S. Branches of Foreign Banks .......................................... 27 7,704 2,584 1,312 - 1,312 

Total FDIC-Insured Institutions............................................. 10,949 6,048,807 3,602,200 2,055,874 690,132 2,746,006 

*Excludes $526 billion in foreign office deposits, which are uninsured.

SAIF Assesment Base, 

December 31, 1989-December31, 1997 

$ Billions 

1,000 

RTC 

Conservatorships Sasser 

Institutions 

0 

($ Billions) 

Sasser Institutions 0.0 2.8 11.9 28.4 42.8 52.0 56.2 57.2 58.4 64.0 70.0 67.1

Oakar Deposits (BIF-members) 2.1 34.0 69.8 80.5 139.9 181.9 220.1 217.2 223.7 231.7 235.4 245.7

RTC Conservatorships 89.0 67.3 36.9 31.2 17.7 1.2 0.0 0.0 0.0 0.0 0.0 0.0

All Other Institutions 851.6 766.0 693.2 615.2 520.3 479.2 459.0 434.3 432.9 422.0 435.7 408.7

Total 942.8 870.0 811.7 755.3 720.7 714.4 735.3 708.6 715.0 717.7 741.0 721.5

Oakar Deposits 

(BIF-members) 

All Other Institutions

12/89 12/90 12/91 12/92 12/93 12/94 12/95 12/96 03/97 06/97 09/97 12/97 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

271 

TABLE I-C. Selected Indicators, All FDIC-Insured Institutions* 

(dollar figures in millions) 1997 1996 1995 1994 1993 1992 1991 

Number of institutions reporting...................................... 10,922 11,452 11,970 12,603 13,220 13,852 14,482 

Total assets..................................................................... $6,041,103 $5,606,580 $5,338,420 $5,019,085 $4,707,056 $4,535,878 $4,543,684 

Total deposits.................................................................. 4,125,811 3,925,067 3,769,481 3,611,619 3,528,486 3,527,034 3,594,345 

Number of problem institutions....................................... 92 117 193 318 572 1,063 1,426 

Assets of problem institutions (in billions)....................... $7 $12 $31 $73 $334 $592 $819 

Number of failed/assisted institutions............................. 1 6 8 15 50 181 

Assets of failed/assisted institutions (in billions)............. $0.03 $0.22 $1.21 $1.57 $9.67 $88 $142 

TABLE II-C. Aggregate Condition and Income Data, All FDIC-Insured Institutions* 

(dollar figures in millions) 

Number of institutions reporting.................................................. 

Preliminary 

4th Quarter 3rd Quarter 4th Quarter % Change 

1997 1997 1996 96:4-97:4 

10,922 11,027 11,452 -4.6 

Total employees (full-time equivalent)........................................ 

CONDITION DATA 

1,782,261 1,769,169 1,741,952 2.3 

Total assets................................................................................. $6,041,103 $5,891,312 $5,606,580 7.8

 Loans secured by real estate................................................ 1,875,733 1,858,322 1,776,203 5.6

 1-4 Family residential........................................................ 1,225,887 1,213,965 1,157,498 5.9

 Home equity loans........................................................... 115,538 113,522 103,572 11.6

 Multifamily residential property.......................................... 98,803 98,397 97,652 1.2

 Commercial real estate..................................................... 387,708 383,622 366,057 5.9

 Construction, development and land................................. 107,960 105,681 101,827 6.0

 Other real estate loans...................................................... 55,375 56,656 53,170 4.1

 Commercial & industrial loans............................................... 812,141 781,311 724,450 12.1

 Loans to individuals............................................................... 609,101 603,474 607,220 0.3

 Credit cards & related plans................................................ 242,622 232,031 241,980 0.3

 Other loans & leases............................................................. 377,175 364,078 408,006 -7.6

 Less: Unearned income & contra accounts.......................... 4,740 4,977 15,788 -70.0

 Total loans & leases................................................................ 3,669,411 3,602,207 3,500,091 4.8

 Less: Reserve for losses......................................................... 61,686 61,859 61,137 0.9

 Net loans & leases.................................................................... 3,607,725 3,540,348 3,438,955 4.9

 Securities .................................................................................. 1,120,543 1,082,943 1,063,008 5.4

 Other real estate owned............................................................ 5,878 6,342 7,196 -18.3

 Goodwill and other intangibles.................................................. 72,672 69,263 52,917 37.3

 All other assets.......................................................................... 1,234,285 1,192,417 1,044,504 18.2 

Total liabilities and capital........................................................... 6,041,103 5,891,312 5,606,580 7.8

 Deposits..................................................................................... 4,125,811 4,011,353 3,925,067 5.1

 Other borrowed funds................................................................ 1,039,250 1,032,722 916,923 13.3

 Subordinated debt..................................................................... 64,924 58,027 53,568 21.2

 All other liabilities....................................................................... 303,826 285,588 249,976 21.5

 Equity capital............................................................................. 507,292 503,623 461,046 10.0 

Loans and leases 30-89 days past due...................................... 47,074 43,299 47,658 -1.2 

Noncurrent loans and leases...................................................... 36,124 36,904 37,970 -4.9 

Restructured loans and leases.................................................... 5,841 6,300 8,278 -29.4 

Direct and indirect investments in real estate............................. 1,256 1,237 1,260 -0.3 

Mortgage-backed securities........................................................ 564,748 542,487 528,925 6.8 

Earning assets............................................................................. 5,271,000 5,172,033 4,912,419 7.3 

Unused loan commitments.......................................................... 

Including IBA's:***

3,195,936 3,078,432 2,676,267 19.4 

 Estimated BIF-insured deposits............................................... 2,055,874 2,027,966 2,007,042 2.4

 Assessment base.................................................................. 2,785,990 2,698,733 2,641,797 5.5

 BIF balance (unaudited figures)............................................ 28,293 27,967 26,854 5.4

 BIF reserve ratio (%)............................................................. 1.38 1.38 1.34 2.9

 Estimated SAIF-insured deposits............................................. 690,132 683,926 683,403 1.0

 Assessment base.................................................................. 721,503 714,021 708,631 1.8

 SAIF balance (unaudited figures).......................................... 9,368 9,253 8,888 5.4

 SAIF reserve ratio (%)........................................................... 1.36 1.35 1.30 4.4

 Estimated FDIC-insured deposits, BIF and SAIF..................... 2,746,006 2,711,892 2,690,445 2.1 

INCOME DATA 

Total interest income............................................. 

Total interest expense........................................... 

 Net interest income............................................. 

Provision for loan losses....................................... 

Total noninterest income....................................... 

Total noninterest expense..................................... 

Securities gains (losses)....................................... 

Applicable income taxes....................................... 

Extraordinary gains, net........................................ 

 Net income.......................................................... 

Preliminary Preliminary 

Full Year Full Year 4th Quarter 4th Quarter %Change 

1997 1996 %Change 1997 1996 96:4-97:4 

$408,734 $385,040 6.2 $107,115 $99,349 7.8 

205,602 192,172 7.0 54,900 49,495 10.9

203,132 192,868 5.3 52,215 49,854 4.7 

21,945 18,819 16.6 6,044 5,383 12.3 

111,534 101,073 10.3 29,163 26,761 9.0 

191,005 186,414 2.5 50,291 47,614 5.6 

3,103 2,055 51.0 1,426 654 117.9 

36,760 31,228 17.7 8,836 8,411 5.1 

15 (158) N/A 3 (0) N/A

68,072 59,376 14.6 17,636 15,861 11.2 

*Excludes institutions in RTC conservatorship, one self-liquidating savings institution, insured branches of foreign banks (IBA’s), unless indicated otherwise. 

***Reserve ratios reflect the insurance fund balance as a percentage of estimated insured deposits. N/M-Not meaningful 
127 

TABLE I-D. Selected Indicators, BIF-Member Depository Institutions* 

(dollar figures in millions) 1997 1996 1995 1994 1993 1992 1991 

Number of institutions reporting...................................... 9,403 9,822 10,242 10,759 11,291 11,813 12,305 

Total assets..................................................................... 5,283,063 4,855,810 4,576,263 4,246,786 3,949,695 3,711,612 3,660,497 

Total deposits.................................................................. 3,609,481 3,402,648 3,224,307 3,061,457 2,951,979 2,873,169 2,881,811 

Number of problem institutions....................................... 73 86 151 264 472 856 1,089 

Assets of problem institutions (in billions)....................... $5 $7 $20 $42 $269 $464 $610 

Number of failed/assisted institutions............................. 1 5 6 13 41 122 

Assets of failed/assisted institutions (in billions)............. $0.03 $0.19 $0.76 $1.43 $3.54 $44 $63 

TABLE II-D. Selected Aggregate Condition and Income Data, BIF-Member Depository Institutions* 

(dollar figures in millions) 

Number of institutions reporting.............................................. 

Preliminary 

4th Quarter 3rd Quarter 4th Quarter % Change 

1997 1997 1996 96:4-97:4 

9,403 9,481 9,822 -4.3

 Commercial banks................................................................. 9,037 9,115 9,441 -4.3

 Savings institutions................................................................ 366 366 381 -3.9 

Total employees (full-time equivalent).................................... 

CONDITION DATA 

1,590,766 1,577,801 1,548,517 2.7 

Total assets............................................................................. $5,283,063 $5,138,006 $4,855,810 8.8

 Loans secured by real estate, total....................................... 1,415,313 1,394,933 1,307,099 8.3

 1-4 Family residential.......................................................... 851,977 838,393 785,126 8.5

 Multifamily residential property............................................ 64,466 62,303 59,580 8.2

 Commercial real estate....................................................... 353,270 349,543 330,832 6.8

 Construction, development and land................................... 90,458 88,275 78,574 15.1

 Commercial & industrial loans............................................... 798,241 768,098 712,727 12.0

 Reserve for losses............................................................... 56,673 56,947 55,840 1.5

 Total deposits........................................................................ 3,609,481 3,498,508 3,402,648 6.1

 Domestic deposits................................................................. 3,083,286 2,991,459 2,929,150 5.3

 Estimated insured deposits................................................... 2,267,942 2,235,431 2,200,537 1

 BIF-insured deposits (estimated)........................................ 2,023,116 2,000,819 1,983,448 1

 SAIF-insured deposits (estimated)...................................... 244,825 234,612 217,089 4

 Noncurrent loans and leases................................................ 30,339 30,742 31,710 -4.3

 Other real estate owned........................................................ 4,174 4,581 5,395 -22.6

 Equity capital......................................................................... 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions:

442,137 439,510 399,441 10.7 

 Well capitalized..................................................................... 9,203 9,287 9,664 -4.8

 Adequately capitalized.......................................................... 183 181 136 34.6

 Undercapitalized.................................................................... 9 7 13 -30.8

 Significantly undercapitalized................................................ 4 3 7 -42.9

 Critically undercapitalized...................................................... 

Total assets:

4 3 2 100.0 

 Well capitalized..................................................................... $5,203,826 $5,103,814 $4,827,860 7.8

 Adequately capitalized.......................................................... 74,783 33,119 23,026 224.8

 Undercapitalized.................................................................... 1,486 837 3,830 -61.2

 Significantly undercapitalized ............................................... 2,725 151 1,036 162.9

 Critically undercapitalized...................................................... 243 84 57 322.8 

INCOME DATA 

Preliminary Preliminary 

Full Year Full Year 4th Quarter 4th Quarter %Change 

1997 1996 %Change 1997 1996 96:4-97:4 

Net interest income............................................... $182,258 $170,938 6.6 $46,637 $44,266 5.4 

Provision for loan losses....................................... 20,300 16,883 20.2 5,560 4,708 18.1 

Net income............................................................ 61,516 54,479 12.9 15,897 14,299 11.2 

Net charge-offs...................................................... 18,591 16,093 15.5 5,125 4,611 11.1 

Number of institutions reporting net losses........... 419 407 2.9 899 885 1.6 

*Excludes insured branches of foreign banks. 
TABLE I-E. Selected Indicators, SAIF-Member Depository Institutions* 

(dollar figures in millions) 1997 1996 1995 1994 1993 1992 1991 

Number of institutions reporting...................................... 1,519 1,630 1,728 1,844 1,929 2,039 2,177 

Total assets..................................................................... 758,039 750,770 762,157 772,299 757,362 824,266 883,187 

Total deposits.................................................................. 516,331 522,419 545,174 550,162 576,507 653,865 712,533 

Number of problem institutions....................................... 19 31 42 54 100 207 337 

Assets of problem institutions (in billions)....................... $2 $6 $11 $31 $65 $128 $209 

Number of failed/assisted institutions............................. 0 1 2 2 9 59 144 

Assets of failed/assisted institutions (in billions)............. $0.00 $0.03 $0.46 $0.14 $6.00 $44 $79 

TABLE II-E. Selected Aggregate Condition and Income Data, SAIF-Member Depository Institutions* 

(dollar figures in millions) 

Number of institutions reporting.............................................. 

Preliminary 

4th Quarter 3rd Quarter 4th Quarter % Change 

1997 1997 1996 96:4-97:4 

1,519 1,546 1,630 -6.8

 Commercial banks................................................................. 106 100 87 21.8

 Savings institutions................................................................ 1,413 1,446 1,543 -8.4 

Total employees (full-time equivalent).................................... 

CONDITION DATA 

191,495 191,368 193,435 -1.0 

Total assets............................................................................. $758,039 $753,307 $750,770 1.0

 Loans secured by real estate, total....................................... 460,420 463,388 469,104 -1.9

 1-4 Family residential.......................................................... 373,910 375,572 372,371 0.4

 Multifamily residential property............................................ 34,336 36,095 38,071 -9.8

 Commercial real estate....................................................... 34,438 34,080 35,224 -2.2

 Construction, development and land................................... 17,502 17,406 23,252 -24.7

 Commercial & industrial loans............................................... 13,900 13,213 11,723 18.6

 Reserve for losses............................................................... 5,013 4,912 5,297 -5.4

 Total deposits........................................................................ 516,331 512,846 522,419 -1.2

 Domestic deposits................................................................. 516,331 512,846 522,336 -1.1

 Estimated insured deposits................................................... 476,753 474,902 488,337 0

 BIF-insured deposits (estimated)........................................ 31,446 25,588 22,024 23

 SAIF-insured deposits (estimated)...................................... 445,306 449,313 466,313 (1)

 Noncurrent loans and leases................................................ 5,785 6,163 6,260 -7.6

 Other real estate owned........................................................ 1,704 1,760 1,801 -5.4

 Equity capital......................................................................... 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions:

65,154 64,113 61,605 5.8 

 Well capitalized..................................................................... 1,485 1,517 1,577 -5.8

 Adequately capitalized.......................................................... 33 26 50 -34.0

 Undercapitalized.................................................................... 1 3 2 -50.0

 Significantly undercapitalized................................................ 0 0 1 0.0

 Critically undercapitalized...................................................... 

Total assets:

0 0 0 0.0 

 Well capitalized..................................................................... $749,169 $747,141 $732,832 2.2

 Adequately capitalized.......................................................... 8,861 6,076 17,677 -49.9

 Undercapitalized.................................................................... 9 90 247 -96.2

 Significantly undercapitalized ............................................... 0 0 14 0.0

 Critically undercapitalized...................................................... 0 0 0 0.0 

INCOME DATA 

Preliminary Preliminary 

Full Year Full Year 4th Quarter 4th Quarter %Change 

1997 1996 %Change 1997 1996 96:4-97:4 

Net interest income............................................... $20,873 $21,930 -4.8 $5,578 $5,588 -0.2 

Provision for loan losses....................................... 1,644 1,936 -15.1 484 675 -28.2 

Net income............................................................ 6,556 4,897 33.9 1,739 1,562 11.3 

Net charge-offs...................................................... 1,272 1,521 -16.4 325 434 -25.1 

Number of institutions reporting net losses........... 62 227 -72.7 125 141 -11.3 

*Data between 1991 and 1995 do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 

N/M - Not meaningful 
 

 

Number of FDIC-Insured "Problem" Institutions, 

1992 - 1997 

Number of Institutions 

1,200 

900 

600 

300 

0 

12/92 12/93 12/94 3/95 6/95 9/95 12/95 3/96 6/96 9/96 12/96 3/97 6/97 9/97 12/97 

Savings Institutions 276 146 71 71 64 59 49 42 38 36 35 35 29 27 21 

Commercial Banks 787 426 247 215 190 158 144 127 99 89 82 77 74 71 71 

Assets of FDIC-Insured "Problem" Institutions, 

1992 - 1997 

$ Billions 

600 

400 

200 

0 

Savings Institutions 184 92 39 39 33 17 14 13 10 8 7 5 3 2 

12/92 12/93 12/94 3/95 6/95 9/95 12/95 3/96 6/96 9/96 12/96 3/97 6/97 9/97 12/97 

$592 

$334 

$72 $66 $56 $37 $31 $26 $18 $15 $12 $10 $8 $7 $7 

Savings Institutions 

Commercial Banks 

1,063 

572 

318 286 254 217 193 169 137 125 117 112 103 98 92 

Savings Institutions 

Commercial Banks 

2 

Commercial Banks 408 242 33 27 23 20 17 13 8 7 5 5 5 5 5 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 20 Fourth Quarter 1997