The FDIC 

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FourthQuarter1995 COMMERCIAL BANKING PERFORMANCE - FOURTH QUARTER 1995 

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 

• Fourth-Quarter Earnings Top $12 Billion

• Fu/I-Year Earnings Reach New Record for Fourth Consecutive Year

• Two-Thirds of All Banks Report Higher Full-Year Earnings

• Loan Growth Continues to Slow in Fourth Quarter

• Deposits Rise Sharply at Year-End

" 

Insured commercial banks reported net income of 

$12.1 billion for the fourth quarter of 1995. This is the 

second-highest quarterly total ever, after the $13.8 

billion banks earned in the third quarter of 1995. The 

average return on assets (ROA) for the quarter was 

1.13 percent. Earnings were $1.4 billion (13.3 percent) higher than in the fourth quarter of 1994. The 

improvement was widespread; almost two out of 

every three banks (63.2 percent) reported higher 

quarterly earnings than a year ago, and average 

ROAs were up in all six QBP regions and all four 

asset-size groups. For all of 1995, banks earned a 

record $48.8 billion, surpassing the previous record, 

which was set in 1994, by $4.2 billion (9.4 percent). 

The industry's full-year ROA was 1.17 percent, marking the third consecutive year that industry ROA has 

exceeded one percent. Almost 97 percent of commercial banks reported positive earnings in 1995, with 68 

percent reporting higher earnings than in 1994. 

$ Billions 

Quarter ly Net Income, 1991 - 1995 

14 

9 

• Socunties and Other Gains Net I

I 13.8 D Net Operating Income 

85 .

7.5 ••• 

I 

5.5 

• 4.6 43 i .• M

11.8 12.0- 11.5 -,01 .,. 108 110s 11.111.2 . r·1 

. 103 . "",- - .-

1·

.

I 

--

12.1 ,-

•

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

1991 1992 1993 1994 1995 

Higher net interest income was the largest contributor 

to the earnings improvement in the fourth quarter. 

Although the decline in net interest margins from last 

year's levels continued through the fourth quarter, 

banks were able to limit margin erosion and increase 

net interest income by growing earning assets. 

Fourth-quarter net interest income totaled $39.7 billion, an increase of $1.9 billion (4.9 percent) from a 

year earlier. Bank earnings also benefited from moderation in noninterest expense growth. The midyear 

reduction in deposit insurance premiums made possible by the recapitalization of the Bank Insurance 

Fund meant that banks' insurance assessments in the 

fourth quarter were approximately $1.1 billion lower 

than a year earlier, and these cost savings helped 

offset a fourth-quarter surge in merger-related expenses. Noninterest expense of $39.2 billion in the 

fourth quarter was only $722 million (1.9 percent) 

more than in the fourth quarter of 1994. Strong growth 

in fee income also contributed to the improvement in 

bank profits. Finally, bank earnings benefited from a 

$973-million swing in results from sales of investment 

securities. These sales produced a net gain of $58 

million in the fourth quarter. A year ago, banks' sales 

of securities resulted in a $915-million loss. 

Quarterly Ne t Interest Margins, 1991 - 1995 

Net Interest Marg,n (%) 

s�---�-------�--....,...----

4.5 

4 •• 

I •

. 

.. • 

3.5 L---'---'--....._ 

__ 

__,___.._

....:.... ........ 

__ 

:.......___. 

___ 

......., 

12341234 1 23412341234 

1991 1992 1993 1994 1995 

Requests for copies of and subscriptions to the FDIC Quarterly Banking Profile should be made through the FD/C's Public 

Information Center, BO 1 17th Street, NW, Washington, DC 20434; telephone (202) 416-6940. 

Internet address: World Wide Web, www.fdic.gov. or Gopher, gopher.fdic.gov. 
The same factors that helped boost fourth-quarter earnings 

also helped propel full-year net income above the previous 

year's level. Net interest income was $7 .7 billion higher than 

in 1994, even though average net interest margins were 

seven basis points lower, thanks to a 7.7-percent increase 

in interest-earning assets. Noninterest revenues were up 

$6.2 billion, reflecting strong growth in fee income. Securities sales netted banks $545 million in gains in 1995, a 

$1.1-billion improvement over 1994, when securities sales 

produced $572 million in net losses. 

For the third consecutive quarter, commercial banks' loanloss provisions were higher than a year earlier. Banks set 

aside $3.8 billion in the fourth quarter, an $849-million {29 

percent) increase over the same period of 1994. For the full 

year, loan-loss provisions totaled $12.5 billion, exceeding 

the total for 1994 by $1.6 billion {14.5 percent). This marked 

the first full-year increase in loss provisions since 1991; 

however, the total amount set aside in 1995 was still less 

than in any year between 1983 and 1994. 

Net charge-offs were up from year-earlier levels for the 

second consecutive quarter. Fourth-quarter net charge-offs 

of $3.9 billion were $775 million {24.4 percent) higher than 

a year earlier. Full-year net charge-offs were $12.2 billion, 

up $920 million {8.2 percent) from 1994. The increase in net 

charge-offs in 1995 was entirely attributable to rising losses 

on consumer loans. Net charge-offs on credit card loans 

were $1.8 billion {36.1 percent) higher than in 1994, while 

charge-offs on other loans to individuals increased by $608 

million. These increases were partially offset by declining 

charge-offs on banks' real estate loans. Net charge-offs on 

commercial real estate loans were $517 million lower than 

in 1994, while net losses on real estate construction and 

development loans declined by $420 million. 

Noncurrent Loan Rates At Year-End, 1984 -1995 

% of Loans 

6.0 ,--------------------� 

5.0 

4

.0 

-

I 

C&I / \ .

.. 

• •1 ••

•·····• " 

' , .....----All Other Loans• 

\ 

••• .. . I •

• •••.••• ,�

I 

3.0 .... 

2.0 Rul E&1ate 

\ 

' \ 

\ ··. • 

. -·-·- ' .

. 

- . -. -. -

. -

. -

. - ·

·

·;··· 1.0 

•

, • • • ' • ' ----- '' - ' 

' Loans to Individuals - .

0

.0 �-�-��-�-�----��-�-�-----� 

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

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

Noncurrent loans declined for the eighteenth time in the last 

nineteen quarters. Noncurrent loan levels improved in all 

major loan categories except consumer loans, where they 

registered a $552-million increase. A more significant 

harbinger of future consumer loan performance was a 

FDIC-Insured Commercial Banks 2 

$1.2-billion increase in delinquent {30-89 days past due) 

consumer loans in the fourth quarter. At the end of 1995, 

2.43 percent of all credit card loans were delinquent, the 

highest level in two years. 

Annual Net Loan Charge-Off Rates 

1984 -1995 

% of Loans 

3.0 ,------------- --- --------, 

2.0 

1.0 

/ Loans to 

/ \ Individuals 

All Other Loans• \ • _ 

� / ,' ,.\ ...

. , 

I ,· • .\,, ·, . . - . ,

. ' , 

.

. ---�----,-· .

. .

. 

······· . ·

·

. .

.

·· \ .

.

. 

, "•• I • • .......... / ·.

.

, I / •. 

' / C&I \ 

Real Estate 

0

.0 � �-----�-� ��-�-�--------��� 

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

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

Loans to individuals and commercial and industrial loans led 

the growth in overall lending in the fourth quarter. Credit card 

loans grew by $15.2 billion, and commercial and industrial 

loans increased by $14.1 billion. Real estate loan growth 

was comparatively sluggish; loans secured by commercial 

real estate properties increased by only $4.1 billion, while 

residential mortgage loans rose by only $3.9 billion. Although loan growth showed signs of slowing in the second 

half of the year, total loans at commercial banks increased 

by $244.5 billion (10.4 percent) in 1995. This is the largest 

annual percentage growth in bank loans since 1984 and the 

largest dollar increase ever registered. Commercial and 

industrial loans increased by $72.4 billion (12.3 percent), the 

largest annual percentage increase since 1981. Real estate 

loans increased by $82.3 billion {8.3 percent) in 1995. Loans 

to individuals grew by $48.2 billion {9.9 percent). 

Banks' securities holdings declined for the second consecutive year. Investment securities as a proportion of commercial bank assets are at their lowest level since March 31, 

1991. Most of the reduction occurred in U.S. Treasury 

securities. Many banks took advantage of a one-time opportunity in the fourth quarter to redesignate "held-to-maturity" 

{HTM} securities as "available-for-sale" (AFS). At least 5,500 

banks may have shifted some HTM securities into the AFS 

category. More than 2,000 of these banks used the opportunity provided by the Financial Accounting Standards Board 

(FASB) to redesignate or sell al/ of their HTM securities. 

Under Generally Accepted Accounting Principles (GAAP), 

any unrealized gains (the excess of market value over book 

value) in banks' AFS portfolios are credited to equity capital, 

while unrealized gains in HTM portfolios have no impact on 

capital. In the current environment of low interest rates, most 

of the securities in banks' portfolios have market values 

higher than their amortized cost (book) value. As much as 

FDIC Quarterly Banking Profile 

Fourth Quarter 1995 
608 

io;3} 

$2.8 billion of the $5.6-billion increase in commercial banks' 

equity capital in the fourth quarter may have come as a result 

of the redesignation of HTM securities. While the industry 

reported a net gain of $58 million from securities sales in the 

quarter, 1,232 banks reported net losses on their securities 

sales. This suggests that some institutions may have elected 

to take advantage of the opportunity to re-designate HTM 

securities in a favorable interest-rate (and earnings) environment to "houseclean" their portfolios, and cut losses on 

some of their weaker holdings. 

Total deposits at insured commercial banks increased by 

$96.3 billion in the fourth quarter, the largest quarterly 

increase in nine years. Deposits in domestic offices grew by 

$91.8 billion, also a nine-year high. The fourth-quarter surge 

accounted for most of the full-year increase of $153.1 billion 

in total deposits. Most of the increase in the fourth quarter 

occurred in "core" deposits: savings accounts, time deposits 

in accounts of less than $100,000, and demand (checking) 

deposits. These deposits grew by $82.3 billion, the largest 

quarterly increase in three years. 

The number of insured commercial banks reporting financial 

results fell below 10,000 at year-end. Since reaching a peak 

of 14,481 at the end of 1984, the number of commercial 

banks has declined by almost one-third (4,540 banks, or 

31.4 percent). The fourth quarter saw a net decline of 110 

banks, from 10,051 to 9,941, as additions from new charters 

600 

500 -

N wCnartcr . . _,..... 400 

300 

200 

100 

. ; •. . I ;··· . ... • Mergers 

Failed Banks , 

 .... ' 

,.-

Structural Changes Among FDIC-Insured 

Commercial Banks, 1980 - 1995 

.. .· •" .. . :· \ .,· .

: \

. .·

· , I \ .• 

·ao ·01 ·02 ·03 ·04 ·as ·05 ·a1 ·ea ·09 ·90 ·91 ·92 ·93 ·94 ·95 

(33) and savings institutions converting to commercial bank 

charters (4) were outweighed by commercial banks absorbed through mergers (142). No commercial banks failed 

in the fourth quarter. The number of banks on the FDIC's 

"Problem List" declined from 158 to 144 during the quarter, 

and assets of "problem" banks fell from $20 billion to $17 

billion. 

Commercial and Industrial Loan Growth Rates* 

December 31, 1994 - December 31, 1995 

/-.,-·"";_ 

Northeast J 

/d'I' 

.,, 

f VT: 7.0 

NH: 35.8 

RI: -9.2 

\' .t; CT:57.0 

fti1dst- NJ: 4.0 

,_ \§L_ DE: -7.1 

MD:6.0 

DC:5.8 

";\)

Hawaii 

-2.3 () Puerto Rico 

.. 

18.3 

= Lesa than 0% 

CJO%to5% 

-5%to10% ·some growth rates have been adjusted to reflect significant interstate migrations. See Notes to Users, 

-Greater than 10% pages 21-23. Growth In Connecticut reflects a large purchase of loans from a non-banking Institution. 

FDIC Quarterly Banking Profile 

Fourth Quarter 1995 3 FDIC-Insured Commercial Banks 
$17 $33 

-39.5 

TABLE I-A. Selected Indicators, FDIC-Insured Commercial Banks 

Return on assets (%) ................................................. 

Return on equity(%) ................................................. 

Core capital (leverage) ratio(%) ............................... 

Noncurrent assets plus 

other real estate owned to assets (%) ..................... 

Net charge-offs to loans (%) ...................................... 

Asset growth rate(%) ................................................ 

Net interest margin (%) ............................................. 

Net operating income growth (%) .............................. 

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

Percentage of unprofitable institutions ...................... 

Number of problem institutions .................................. 

1995 1994 1993 1992 1991 1990 1989 

1.17 

14.68 

7.61 

0.85 

0.49 

7.53 

4.29 

7.67 

9,941 

3.38 

144 

1.15 

14.61 

7.64 

1.01 

0.50 

8.21 

4.36 

16.17 

10,450 

3.95 

247 

1.20 

15.34 

7.65 

1.61 

0.85 

5.72 

4.40 

35.38 

10,958 

4.88 

426 

0.93 

12.98 

7.20 

2.54 

1.27 

2.19 

4.41 

92.41 

11,462 

6.85 

787 

0.53 0.48 0.49 

7.94 7.45 7.71 

6.48 6.17 6.11 

3.02 2.94 2.30 

1.59 1.43 1.16 

1.22 2.73 5.38 

4.11 3.94 4.02 

-0.63 2.53 -38.70 

11,921 12,343 12,709 

11.60 13.44 12.50 

1,016 1,012 1,092 

Assets of problem institutions (in billions) ................. $242 $408 $528 $342 $188 

Number of failed/assisted institutions ........................ 6 11 42 100 108 159 206

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

(dollar figures in millions) Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

1995 1995 1994 94:4-95:4 

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

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

CONDITION DATA 

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

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

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

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

Farm loans ........................................................................ . 

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

Less: Unearned income .................................................... . 

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. ...................................................... . 

Non interest-bearing deposits ................................................ . 

Interest-bearing deposits ...................................................... . 

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

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

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

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

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

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

9,941 10,051 

1,484,465 1,482,821 

$4,312,678 $4,229,298 

1,079,979 1,070,887 

661,521 647,417 

535,274 518,461 

40,186 41,873 

291,643 282,915 

5,858 6,054 

2,602,745 2,555,499 

52,816 52,878 

2,549,929 2,502,621 

811,107 818,751 

6,065 7,006 

30,166 28,518 

915,412 872,402 

4,312,678 4,229,298 

611,902 556,272 

2,415,651 2,375,021 

666,625 676,594 

43,536 43,724 

225,304 233,624 

349,661 344,063 

33,772 31,170 

30,378 31,490 

10,450 -4.9 

1,489,171 -0.3 

$4,010,513 7.5 

997,707 8.3 

589,097 12.3 

487,104 9.9 

39,171 2.6 

251,487 16.0 

6,351 -7.8 

2,358,215 10.4 

52,128 1.3 

2,306,088 10.6 

823,014 -1.5 

9,567 -36.6 

24,002 25.7 

847,843 8.0 

4,010,513 7.5 

572,463 6.9 

2,301,975 4.9 

591,082 12.8 

40,756 6.8 

192,149 17.3 

312,089 12.0 

28,087 20.2 

30,706 -1.1 

-4.1 

Restructured loans and leases ............................................... . 3,895 4,531 6,441 

Direct and indirect investments in real estate ......................... . 585 626 610 

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

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

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

Long-term assets (5+ years) ................ H••·······························
 Volatile liabilities ..................................................................... . 

Foreign office deposits ........................................................... . 

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

Off-balance-sheet derivatives .................. _•.............................. 

625,896 

329,141 

3,736,404 

586,999 

1,280,039 

454,088 

2,156,128 

17,165,058 

622,035 

329,195 

3,674,894 

575,689 

1,283,265 

449,645 

2,053,247 

18,241,554 

568,959 

327,184 

3,470,027 

544,888 

1,174,123 

431,915 

1,775,447 

15,773,013 

Preliminary 

Full Year Full Year 

INCOME DATA 1995 1994 

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 ............... H ............ ......... . 

Net income .........................................•................ 

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

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

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

$302,663 

148,441 

154,223 

12,549 

82,442 

149,670 

545 

26,178 

26 

48,838 

12,168 

31,064 

48,486 

$257,832 

111,278 

146,553 

10,961 

76;275 

144,235 

(572) 

22,421 

(15) 

44,624 

11,248 

28,087 

45,032 

10.0 

0.6 

7.7 

7.7 

9.0 

5.1 

21.4 

8.8 

Preliminary 

4th Quarter 4th Quarter %Change 

%Change 1995 1994 94:4-95:4 

17.4 

33.4 

5.2 

14.5 

8.1 

3.8 

N/M 

16.8 

N/M 

9.4 

8.2 

10.6 

7.7 

$78,502 

38,799 

39,702 

3,782 

21,866 

39,222 

58 

6,548 

2 

12,076 

3,945 

11,061 

12,058 

$68,815 

30,975 

37,841 

2,933 

19,775 

38,500 

(915) 

4,623 

15 

10,661 

3,170 

10,226 

11,260 

14.1 

25.3 

4.9 

29.0 

10.6 

1.9 

N/M 

41.7 

-89.2 

13.3 

24.4 

8.2 

7.1 

N/M-Not meaningful 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 Fourth Quarter 1995 
3.4 

7.5 5.4 

49 

3.55 

TABLE Ill-A. Full Vear 1995, FDIC-Insured Commercial Banks 

FULL YEAR Preliminary All

(The way itis ...) Institutions

Number of institutions reporting................ 9,941

Total assets (in billions) ............................. $4,312.7

Total deposits (in billions) .......................... 3,027.6 

Net income (in millions) ............................. 48,838 

Asset Size Distribution Geographic Distribution by Region 

Less 

than $100 

Million 

6,659 

$297.9 

259.0 

3,374 

4.0 

66.1 

$100 Million $1 Billion 

to to 

$1 Billion $10 Billion 

2,861 346 

$696.6 $1,052.9 

586.1 734.1 

8,331 12,847 

2.1 2.6 

72.4 68.8 

Greater 

than $10 

Billion 

75 

$2,265.3 

1,448.4 

24,286 

1.3 

66.7 

East I West 

Northeast 

794 

$1,625.6 

1,029.1 

16,217 

5.4 

71.8 

South- I Mid- Southeast Central west west 

1,659 2,178 2,487 1,773 

$737.6 $695.3 $287.5 $326.4 

536.7 509.7 215.0 258.0 

8,368 7,811 3,997 3,750 

3.9 2.6 1.5 2.0 

72.6 71.0 62.8 63.8 

West 

1,050 

$640.3 

478.9 

8,695 

9.5 

71.0 

8.36 

3.64 

4.73 

1.24 

3.92 

1.18 

1.18 

11.37 

0.24 

125.94 

8.36 8.53 

3.62 3.91 

4.74 4.62 

1.41 2.26 

3.86 4.10 

1.25 1.28 

1.25 1.28 

13.48 15.04 

0.36 0.69 

115.99 121.13 

8.39 

4.48 

3.91 

2.76 

4.33 

1.09 

1.10 

15.60 

0.46 

84.50 

8.54 

4.61 

3.92 

2.84 

4.44 

1.00 

1.02 

13.73 

0.64 

102.55 

8.26 8.17 8.72 7.86 

4.00 4.07 4.04 3.55 

4.26 4.09 4.68 4.31 

1.77 1.60 2.53 1.77 

3.79 3.49 4.33 3.99 

1.19 1.15 1.49 1.20 

1.19 1.15 1.50 1.20 

14.73 14.09 17.10 14.16 

0.32 0.31 0.54 0.24 

98.75 130.06 110.43 117.71 

8.76 

3.50 

5.25 

2.53 

4.71 

1.42 

1.41 

16.58 

0.62 

88.21 

% of unprofitable institutions ..................... 

% of institutions with earnings gains ......... 68.0 

Performance Ratios (%) 

Yield on earning assets ............................. 8.42 

Cost of funding earning assets .................. 4.13 

Net interest margin .................................... 4.29 

Noninterest income to earning assets ....... 2.29 

Noninterest expense to earning assets ..... 4.16 

Net operating income to assets ................. 1.17 

Return on assets....................................... 1.17 

Return on equity ........................................ 14.68 

Net charge-offs to loans and leases .......... 0.49 

Loan loss provision to net charge-offs ...... 103.14 

Condition Ratios(%) 

Loss allowance to: 

Loans and leases .................................... 2.03 1.57 1.61 2.04 2.21 2.43 1.64 1.70 1.73 1.51 2.30 

Noncurrent loans and leases .................. 173.87 150.80 157.82 189.51 173.43 155.19 205.80 195.86 198.22 177.19 177.01 

Noncurrent assets plus 

other real estate owned to assets ........... 0.85 0.78 0.80 0.82 0.89 1.03 0.64 0.63 0.64 0.61 1.09 

Equity capital ratio ..................................... 8.11 10.43 9.39 8.57 7.19 7.61 8.23 8.30 8.70 8.53 8.54 

Core capital (leverage) ratio ...................... 7.61 10.30 9.12 8.03 6.61 7.15 7.66 7.79 8.56 8.11 7.88 

Net loans and leases to deposits .............. 84.22 63.17 69.89 91.79 89.95 85.67 85.90 84.89 80.88 69.45 88.01 

Growth Rates (year-to-year, %) 

Assets ....................................................... 5.2 14.2 9.6 7.2 8.0

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

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

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

Noncurrent assets plus 

other real estate owned ........................... 

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

Loan loss provision ................................... 

PRIOR FULL YEARS 

(The way it was ...) 

Number of institutions ....................... 1994 

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

12.0 

5.2 

9.4 

-9.3 

8.2 

14.5 

10,450 

11,462 

. 

-

. 

-

7,258 

8,292 

. 

. 

. 

-

2,800 

2,790 

-

. 

. 

-

-

328 

329 

-

T 

. 

-

-

64 

51 

9.3 

2.5 

1.1 

-15.4 

-7.7 

0.5 

834 

922 

19.8 

10.4 

14.2 

1.8 

38.6 

24.9 

1,740 

1,892 

11.2 13.2 12.1 10.7 

3.1 4.1 5.2 8.3 

8.8 8.0 12.8 23.4 

1.2 3.0 -1.5 -11.1 

17.9 28.5 72.6 18.9 

29.8 27.8 95.0 23.6 

2,272 2,622 1,857 1,125 

2,521 2,791 2,047 1,289 

......................................... 1990 12,343 9,254 2,715 325 1,070 1,958 2,717 2,954 2,179 1,465

Total assets (in billions) ..................... 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 

......................................... 10 3,389.5 359.6 655.6 1,044.4 1,330.0 1,290.5 507.8 551.7 231.2 267.6 540.8 

Return on assets (%) ........................ 1994 1.15 1.12 1.19 1.31 1.06 1.07 1.18 1.13 1.46 1.12 1.24 

......................................... 1992 0.93 1.04 1.01 1.02 0.81 0.81 0.99 1.02 1.30 1.12 0.82 

......................................... 1990 0.48 0.70 0.76 0.35 0.38 0.03 0.61 0.82 0.98 0.46 0.92 

Net charge-offs to loans & leases (%) 

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

......................................... 1992 1.27 0.57 0.76 1.38 1.57 1.77 0.83 0.96 0.78 0.67 1.30 

......................................... 1990 1.43 0.72 0.85 1.37 1.88 2.03 0.90 0.90 0.99 1.39 1.16 

Noncurrent assets plus 

OREO to assets (%) ...................... 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 1.62 1.35 1.18 1.50 

......................................... 1990 2.94 1.71 1.99 2.82 3.85 4.37 2.04 1.58 1.43 2.72 2.53 

Equity capital ratio (%) ...................... 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 

......................................... 1990 6.45 8.98 7.67 6.33 5.26 5.65 7.02 7.04 7.67 6.51 6.65 

REGIONS: Northeast-Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania Puerto Rico, 

Rhode Island, Vermont, U.S. Virgin Islands 

Southeast- Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia 

Central - Illinois, Indiana, Kentucky, Michigan, Ohio, Wisconsin 

Midwest-Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota 

Southwest-Arkansas, Louisiana, New Mexico, Oklahoma, Texas 

West- Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Pacific Islands, Utah, Washington, Wyoming 

FDIC Quarterly Banking Profile 

Fourth Quarter 1995 5 FDIC-Insured Commercial Banks 

3.46 
4.39 

14.59 

4.76 

TABLE IV-A. Fourth Quarter 1995, FDIC-Insured Commercial Banks 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Elillion Greater East I West 

FOURTH QUARTER Preliminary 

(The way it Is ..• ) 

All 

Institutions 

than $100 

Million 

to 

$1 Billion 

to 

$10 Billion 

than $10 

BIiiion 

Northeast Southeast Central l Midwest 

Southwest West 

Number of institutions reporting ................ 9,941 6,659 2,861 346 75 794 1,659 2,178 2,487 1,773 1,050 

Total assets (in billions) ............................. $4,312.7 $297.9 $696.6 $1,0;52.9 $2,265,3 $1,625.6 $737.6 $695.3 $287.5 $326.4 $640.3 

Total deposits (in billions) .......................... 3,027.6 259.0 586.1 734.1 1,448.4 1,029.1 536.7 509.7 215.0 258.0 478.9 

Nat income (in millions) ............................. 12,076 785 2,103 3,289 5,899 3,871 2,165 1,891 1,008 982 2,158 

% of unprofitable institutions ..................... 7.9 9.6 4.6 3.5 7 8.3 8.3 4.7 8.6 8.3 11.5 

% of institutions with earnings gains ......... 63.2 60.7 68.1 70.2 !,4.0 64.0 64.5 66.6 63.2 58.5 61.4 

Performance Ratios (annualized, %) 

Yield on earning assets ............................. 8.48 8.52 8.51 8.73 8,34 8.56 8.33 8.31 8.61 8.02 8.85 

Cost of funding earning assets .................. 4.19 3.78 3.74 4.01 4.49 4.67 4.06 4.16 4.03 3.65 3.57 

Nat interest margin .................................... 4.29 4.74 4.76 4.72 3.85 3.89 4.26 4.15 4.58 4.36 5.28 

Noninterast income to earning assets ....... 2.36 1.36 1.47 2.33 2.82 2.93 1.86 1.62 2.49 1.84 2.60 

Nonintarast expense to earning assets .... 4.24 4.19 3.94 4.15 4.54 3.82 3.62 4.27 4.03 

Nat operating income to assets ................. 1.13 1.05 1.21 1.27 1.05 0.97 1.19 1.09 1.41 1.20 1.37

Return on assets ....................................... 1.13 1.07 1.22 1.27 1.05 0.96 1.19 1.09 1.43 1.23 1.37

Return on equity ........................................ 13.94 10.16 13.01 14.73 12.63 14.49 13.16 16.29 14.22 15.86

Nat charge-offs to loans and leases .......... 

Loan loss provision to net charge-offs ...... 

Growth Rates (year-to-year, %) 

Nat interest income ................................... 

Nat income ................................................ 

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

Loan loss provision ................................... 

PRIOR FOURTH QUARTERS 

(The way It was . . . ) 

Return on assets (%) ........................ 1994 

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

........................................ 1990 

Net charge-offs to loans & leases (%) 

........................................ 1994 

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

........................................ 1990 

Expansion of Credit Card Lines 

1991 -1995 

$ Billions 

1,500 -------------------

1,000 

500 

0 

D Unused commitments' 

• Loans outstanding 

• Off.JJ.alance-sheet 

1991 

476.0 

139.1 

1992 

565.0 

135.9 

1993 

650.7 

153.5 

1994 

853.8 

186.8 

1995 

1,113.8 

215.8 

Nole: Crecht card loans that have been securitized and sold 'hlthout recourse are not included. They are only 

reported on the September 30 Call Report .. 

0.92 0.52 0.75 0.48 0.44 0.67 0.36 0.74 

112.70 76.07 100.05 90.59 106.72 107.06 100.40 78.97 

- 2.38 11.03 2.73 4.06 6.28 5.87 

- - 6.19 24.45 9.91 18.51 30.33 10.63 

. . 10.56 44.29 24.17 34.33 57.24 38.51 

- - 12.84 18.95 69.91 44.44 171.95 37.57 

1.20 1.00 0.95 1.09 1.05 1.31 1.00 1.34 

0.92 0.88 0.79 0.85 1.05 1.29 1.03 0.74 

-0.04 -0.04 -0.62 0.36 0.70 0.84 0.21 0.52 

0.62 0.54 0.74 0.38 0.39 0.56 0.26 0.59 

1.55 1.60 1.86 1.07 0.80 0.88 0.67 1.79 

1.76 1.86 2.29 1.23 0.99 1.14 1.64 -·- 1.42

Quarterly Personal Bankruptcy Filings 

1990 -1995 

Thousands 

240 --------------------- 

220 

200 

180 

1990 1991 1992 1993 1994 1995

Sources: American Bankruptcy Institute and The Administrative Office of the U.S. Couns. 

Bankruptcy Judges Division. 

0.61 

95.87 

4.92 

13.27 

24.44 

28.96 

1.07 

0.89 

0.09 

0.55 

1.41 

1.66 

0.37 

100.15 

. 

-

. 

-

0.98 

0.81 

0.29 

0.40 

0.80 

1.20 

0.50 

110.19 

-

-

. 

-

1.13 

0.89 

0.44 

0.49 

1.03 

1.27 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 6 Fourth Quarter 1995 
--------------

••• 

8.3 

73.5 

78.4 

2.4 

$598 

34.3 4.7 

47.5 

-$.319 

1.4 

1.2 

1.0 

0.8 

0.6 6 

Return ori Asset• 

TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

Multifamily residential real estate .......................... 35.8 2.2 11.2 14.1 9.8 7.3 6.2 2.6 2.4 7.6 

1-4 Family residential' ........................................... 546.7 46.6 114.8 145.1 240.2 157.2 127.2 89.3 35.2 48.1 89.7 

Horne equity loans ................................................. 79.2 2.2 12.8 23.7 40.6 24.8 15.9 15.9 2.9 1.1 18.6

Commercial and industrial loans ............................. 661.5 27.2 142.6 418.2 255.2 99.3 121.4 36.6 46.9 102.2 

Loans lo individuals ................................................. 535.3 26.2 206.6 224.1 193.6 91.2 90.0 43.8 36.3 80.5 

All other loans and leases (including farm) ............. 331.8 21.0 21.9 48.8 240.2 157.0 37.8 43.3 23.9 13.8 56.1 

Memo: Commercial RE loans not secured by RE ... 19.3 0.2 1.2 3.7 14.2 5.9 2.8 0.6 0.9 6.7 

Memo: Other Real Estate Owned (In millions) 

All other real estate owned ...................................... $6,065 $1,304 $1,199 $2,964 $2,492 $990 $513 $273 $417 $1,380 

Construction and development... ........................... 1,042.5 87.6 261.4 290.1 403.4 310.2 276.2 121.9 66.2 56.0 212.1 

Commercial real estate ......................................... 2,912.9 288.9 636.5 598.5 1,389.0 1,144.9 467.5 265.7 127.4 241.8 665.7 

Multifamily residential real estate .......................... 237.8 25.6 67.8 51.3 93.1 89.6 21.7 7.2 80.3 

1-4 Family residential ............................................ 1,292.3 141.8 295.6 228.1 626.8 496.8 193.8 93.6 79.8 380.8 

F arrnland ............................................................... 155.3 54.4 42.6 30.2 28.0 26.7 18.5 9.7 27.4 31.7 41.3 

Other real estate owned in forei;:in offices ............. 424.3 0.0 0.0 0.6 423.7 424.3 0.0 0.0 0.0 0.0 0.0 

'Excludes home equity loans. N/A - Not available 

"Includes "All other loans" for institutions under $1 billion in asset size. 

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

Return on Assets (ROA) and Equity (ROE) Converting Reserves Back Into Income* 

1934 • 1995 1992 • 1995 ROA% ROE % Number of Banks 

1.6---- - -16 a.nu with Negative P Loan Lou Prcwllton. 017 800 717 

600 ..... - 423 407 400 3ff 350 

200 

0 

December 31, 1995 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate .............................. 

Construction and development .............................. 

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

Multifamily residential real estate .......................... 

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

Horne equity loans ................................................. 

Commercial and industrial loans" .......................... 

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

All other loans and leases (including farm) ............. 

Memo: Commercial RE loans not secured by RE ... 

Percent of Loans Noncurrent'" 

All real estate loans ................................................. 

Conslruction and development. ............................. 

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

Multifamily residential real estate .......................... 

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

Horne equity loans ................................................. 

Commercial and industrial loans" .......................... 

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

All other loans and leases (including farm) ............. 

Memo: Commercial RE loans not secured by RE... 

Percent of Loans Ch11rged-off (net, annu11I) 

All real estate loans ................................................. 

Construction and development. ............................. 

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

Multifamily residential real estate .......................... 

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

Horne equity loans ................................................. 

Commercial and industrial loans" .......................... 

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

All other loans and leases (including farm) ............. 

Memo: Commercial RE loans not secured by RE ... 

Loans Outstanding (in billions) 

All real estate loans ................................................. 

Construction and development. ............................. 

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

All 

Institutions 

1.38 

1.41 

1.21 

0.99 

1.53 

1.10 

0.86 

2.22 

0.37 

0.79 

1.39 

2.75 

2.02 

1.99 

0.88 

0.52 

1.19 

1.22 

0.30 

1.28 

0.18 

0.21 

0.32 

0.32 

0.11 

0.19 

0.25 

1.73 

-0.02 

-0.14 

$1,080.0 

68.7 

298.5 

Less 

than $100 

Million 

1.47 

1.07 

1.17 

0.81 

1.82 

1.56 

1.57 

2.40 

NA 

0.39 

0.98 

1.02 

1.21 

1.28 

0.79 

0.84 

1.32 

0.72 

NA 

0.77 

0.07 

0.11 

0.08 

0.26 

0.06 

0.18 

0.39 

0.55 

NA 

0.83 

$92.6 

6.2 

24.8 

Asset Size Distribution 

$100 Million $1 Billion 

to to 

$1 Billion $10 Billion 

1.27 1.31 

1.08 1.44 

0.97 1.13 

0.93 0.76 

1.59 1.50 

0.92 0.94 

1.36 0.87 

2.05 2.16 

NA 0.65 

0.89 0.91 

1.06 1.18 

1.36 2.01 

1.39 1.74 

1.51 1.56 

0.79 0.80 

0.48 0.49 

1.23 0.98 

0.64 1.14 

NA 0.45 

0.68 0.73 

0.14 0.20 

0.16 0.35 

0.21 0.40 

0.25 0.42 

0.08 0.06 

0.13 0.09 

0.40 0.15 

1.00 1.93 

NA 0.12 

0.92 -0.03 

$244.2 $291.1 

18.6 20.8 

81.3 87.2 

Greater 

than $10 

Billion 

1.47 

1.74 

1.47 

1.24 

1.45 

1.22 

0.60 

2.32 

0.34 

0.76 

1.78 

5.00 

2.92 

2.72 

0.98 

0.54 

1.13 

1.56 

0.29 

1.47 

0.22 

0.15 

0.40 

0.29 

0.15 

0.27 

0.21 

1.94 

-0.06 

-0.28 

$452.1 

23.1 

105.2 

Geographic Distribution by Re;:iion 

East West I 

North· South- Mid- Southeast east Central west west West I
 1.73 

1.84 

1.79 

1.04 

1.68 

1.72 

0.63 

2.42 

0.34 

1.11 

2.17 

5.86 

3.71 

2.45 

1.23 

0.82 

1.31 

1.91 

0.36 

2.98 

0.33 

0.62 

0.65 

0.65 

0.21 

0.18 

0.33 

2.15 

-0.06 

-0.40 

$300.4 

10.7 

72.6 

1.21 1.32 1.09 1.35 1.24 

0.90 2.01 1.36 0.97 1.52 

0.88 1.14 1.02 0.94 1.10 

0.72 1.07 0.72 0.76 1.30 

1.52 1.50 1.19 1.61 1.38 

0.76 0.81 0.66 2.51 0.79 

1.00 1.04 1.51 1.04 0.79 

2.07 2.17 2.15 2.01 2.14 

0.37 0.68 0.21 0.28 0.31 

0.64 0.98 0.14 0.56 0.59 

0.89 0.88 0.77 0.93 1.72 

1.13 1.74 0.84 1.24 4.89 

1.30 1.26 1.18 1.19 2.09 

0.90 1.06 1.10 0.60 3.96 

0.68 0.62 0.51 0.69 1.04 

0.33 0.33 0.23 0.84 0.49 

0.78 1.14 1.36 1.12 1.30 

0.82 0.79 0.99 0.52 0.95 

0.15 0.19 0.24 0.29 0.33 

0.43 0.65 0.67 0.50 0.49 

0.07 0.06 0.03 -0.01 0.36 

0.08 0.25 0.07 -0.15 0.21 

0.11 0.07 0.03 -0.05 0.66 

0.05 0.08 0.13 -0.06 0.57 

0.04 0.02 0.03 0.03 0.17 

0.08 0.06 0.01 0.04 0.45 

0.13 0.17 0.29 0.29 0.21 

1.29 1.16 1.93 0.84 2.20 

0.08 0.02 0.03 0.02 -0.03 

-0.06 -0.03 0.01 -0.23 0.01 

$241.5 $186.2 $72.9 $85.7 $193.2 

19.5 12.2 4.8 7.2 14.3 

67.5 56.6 19.8 24.1 57.8 

-$200 ·$187 ·$173.td $166-$211 

-$400 .$355

·$424 

..... 0.2 -$600 

Taul Amount of NegaUwe Ouwlwt, Loan Lou Provlelane ·1703 0 0 -$800 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1934·37 ·40 ·43 '46 ·49 '52 ·55 ·sa ·s1 '64 ·57 ·10 73 76 79 '82 '85 ·ea ·91 1995 S Millions 1992 1993 1994 1995 

In 1934 ROA was -0,77% and ROE was -5.80%. ·Bania Reporting Negative Loan Loa Provisk>rw 

FDIC Quarterly Banking Profile 

Fourth Quarter 1995 7 FDIC-Insured Commercial Banks 

0.4 


SAVINGS INSTITUTION PERFORMANCE - FOURTH QUARTER, 1995 

•	 Fourth-Quarter Earnings Of $1.8 Billion Push Full-Year 1995 Earnings To 

A Record $7.6 Billion 

•	 Full-Year Average Return On Assets Of 0.78 Percent Is Highest Since 

1962 

•	 Net Interest Margins Experience First Quarterly Increase Since 1993 

•	 Residential Real-Estate Loans Decline While Noncurrent Rates Increase 

Savings institutions earned $1.8 billion during the 

fourth quarter of 1995 for an annualized return on 

assets (ROA) of 0.71 percent. Net income was 

$181 million higher than in the fourth quarter of 

1994, when the industry reported an ROA of 0.65 

percent. Net interest income was $146 million less 

than in the fourth quarter of 1994, but was higher 

than in the other three quarters in 1995. Noninterest income and noninterest expense were both 

down from a year ago, by $326 million and $379 

million, respectively. Sales of securities yielded a 

profit of $134 million in the fourth quarter, compared with a net loss of $194 million a year ago. 

Earnings benefited from this $328-million swing in 

results from sales of investment securities. The 

resultant boost to earnings from this turnaround 

outweighed the drag from lower net interest income and extraordinary charges of $81 million. 

assets reported no increase in net interest margins 

while institutions over $1 billion reported a ten 

basis-point increase. 

Quarterly Net Interest Margins 

1991 -1995 

Net Interest Margin (%) 

4 

3.5 

3 

2.5 

- Assets< $100 Million 3.45% 

.. .. . Assets> $100 Million •

• 3.11% 

.. .. ..
� .. .. . 

t' 

Quarterly Net Income, 1991 -1995 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 

1991 1992 1993 1994 1995 $ Billions 

' 3 • Securities and Other Gains, Net 

D Nel Operaling Income 

2.2 1.9 

2 1.8 

-1 ------ - ----' 

1234 1 2 3 4 1234 1 234 1 2 3 4 

1991 1992 1993 1994 1995 

Net interest margins rose, from third-quarter levels, for the first time since 1993. Margins rose 

seven basis points, from 3.05 percent in the third 

quarter to 3.12 percent in the fourth quarter. The 

nine-basis-point increase in the average yield on 

earning assets exceeded the two-basis-point increase in the average cost of funding earning 

assets. Institutions with less than $1 billion in 

Profitability at the largest thrifts, those with over 

$5 billion in assets, continued to catch up with the 

rest of the industry. For the full year, institutions 

with over $5 billion in assets reported an average 

ROA of 0.72 percent, up from 0.43 percent last 

year. Over 60 percent of large institutions reported 

year-to-year increases in earnings. These thrifts, 

with a large presence on the West Coast, traditionally emphasize adjustable-rate mortgages (ARMs) 

which are linked to an index that lags actual 

interest-rate changes. These institutions keep 

approximately 70 percent of their 1-4 family residential real-estate loans (representing 34 percent 

of their total assets) in ARMs. As interest rates 

stabilized towards the end of the year, yields on 

these loans continued to increase as the indexed 

loan rates began to catch up to market rates. 

In contrast, profitability declined significantly at 

small institutions (with less than $100 million in 

assets), from an ROA of 0.79 percent in 1994 to 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 Fourth Quarter 1995 
---- -$ - ·· -- % ···
' - ·· & ······ ·· 

0.67 percent in 1995. Net interest margins declined by 21 basis points during 1995. Average 

asset yields rose by 58 basis points, but were 

out-paced by a 79 basis-point increase in funding 

costs. Fewer than 40 percent of small institutions 

showed year-to-year increases in earnings. 

These institutions keep less than half of their 1-4 

family residential mortgages in ARMs. 

The thrift industry set an all-time record for full-year 

earnings of $7.6 billion, for an ROA of 0.78 percent. 

This was the highest annual ROA reported since 

1962. Profits were $1.3 billion higher in 1995 than 

in 1994. A decline in net interest income of $1.6 

billion was more than offset by a decline in loanloss provisions of $371 million and a $1.4-billion 

reduction in noninterest expenses. Noninterest 

expenses, as a percentage of earning assets, fell 

to 2.37 percent, which is the lowest rate since 

1989. The year's earnings results included fewer 

large restructuring charges than occurred in previous years when several large institutions worked 

to strengthen their balance sheets. Noninterest 

income in 1995 exceeded the previous year's level 

by nearly $1 billion primarily due to gains from 

asset sales. Thrifts paid out over $4 billion in 

dividends during 1995, an increase of $1.5 billion 

over 1994, when dividends were $2.6 billion. The 

increase in dividends exceeded the increase in 

earnings, resulting in lower retained earnings for 

the year. Earnings retained by the industry fell to 

$3.5 billion from $3.8 billion in 1994. 

Return on Assets, 1947·1995 

ROA% 

Loan losses in 1995 were 30 percent lower than in 

1994. Net charge-offs were 0.34 percent of total 

loans and leases for the year, down from 0.51 

percent in 1994. This is the lowest net charge-off 

rate recorded in the six years that all thrifts have 

reported net charge-offs on a consistent basis. 

The largest improvement was reported by thrifts in 

the West Region, where the charge-off rate declined from 0.86 percent in 1994 to 0.47 percent 

for 1995. Net charge-offs declined for all loan 

categories except consumer loans. The net 

charge-off rate on consumer loans increased from 

1.13 percent in 1994 to 1.17 percent in 1995. All 

other net charge-off rates were below one percent 

in 1995. The largest improvement occurred in 

multifamily mortgages, where the net charge-off 

rate declined from 1.35 percent in 1994 to 0.62 

percent in 1995. 

Coverage Ratio and Reserve Levels* 

1990 -1995 

$ Billion Coverage Ratio 

40"---------------# 100 

Noncurrent Loans ($) 

30 75

······· ····· ·-·-··· ..Coverage Ratio (%) •• •• 2o '------ 50

"---.. .. .... ·
' -

10 _ _ _ _ - _ _ · ,, - ··· 25 ··· _ ···· 

Loan-Loss Reserves ($) 

0 0

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

1990 1991 1992 1993 1994 1995 

• Loan Loss Reserves to Noncurrent loans and Leases 

Noncurrent loans rose by almost three percent 

($247 million) during the fourth quarter while reserves fell slightly, by $9 million. As a result, the 

"coverage ratio" (reserves to noncurrent loans) fell 

from 82 cents to 80 cents for each dollar of noncurrent loans. Noncurrent consumer loan rates 

increased during the quarter, from 0.84 percent to 

0.91 percent, and the noncurrent rate for loans 

secured by real estate rose, from 1.36 percent to 

1.40 percent. The sharpest increases in noncurrent rates were in residential real-estate loans. 

These rate increases were exacerbated by declines in residential real-estate loans caused by 

securitization activity at one large California institution .

1 Noncurrent rates increased on loans secured by 1-4 family properties from 1.17 percent to 

1

American Savings Bank FA, Stockton, California, reported a 

$2.3-billion decline in 1-4 family residential mortgages and a 

$1.3-billion decline in multifamily mortgages. 

FDIC Quarterly Banking Profile 

Fourth Quarter 1995 9 FDIC-Insured Savings Institutions 
--------
------ --

1.24 percent as the loan balance declined by $1.8 

billion. The balance of multifamily mortgages declined by $1.6 billion and noncurrent rates increased from 1 .67 percent to 1 .83 percent. 

Total thrift assets increased by $1 billion during the 

quarter. Savings institutions shifted from residential real-estate loans to more liquid assets. These 

other assets grew by $4.1 billion during the fourth 

quarter and include cash, deposits, federal funds 

sold and securities purchased under agreements 

to resell. Savings institutions reported a $1.9­

billion decline in total securities in the fourth quarter. Mortgage-backed securities grew by $3.8 

billion, primarily due to the securitization activity 

referred to above, while holdings of non-mortgage 

U.S. Government securities fell by $5.9 billion. 

During the fourth quarter, thrifts took advantage of 

the opportunity granted by FASB to reallocate 

securities between the held-to-maturity and the 

available-for-sale categories. The thrift industry 

reported a net reduction in held-to-maturity securities of $79 billion. Available-for-sale securities 

rose by $77 billion. The unrealized gains associated with the industry's available-for-sale securities increased by $877 million during the quarter. 

Equity capital rose by $949 million, mostly due to 

the increase in unrealized gains on available-forsale securities. The industry's equity-to-assets 

Noncurrent Loan Rates at Year-End 

1990 - 1995 

% of Loans 

8 . 0 ---------------

·············•••......••·· C&I 

6.0 ,... .. /./·· ......········· 4.0 

-· I ................. Real Estate 2.0 -··-··-··-·· . .. . ..... ::_:;.:• •.. -··-··-··-··-··-··-··-· Loans to Individuals 

0.

0 '--------'----'---------'-------'--' 

1990 1991 1992 1993 1994 1995 

Note: Noncurrent loan rates represent the percentage of loans that are past due 90 days 

or more or in nonaccrual status. 

ratio rose from 8.31 percent to 8.39 percent. Core 

capital is not affected by changes in available-forsale securities values, and the industry's leverage 

ratio declined slightly during the quarter, from 7.84 

percent to 7.80 percent. Deposits declined for the 

second consecutive quarter, falling $570 million. 

For full-year 1995, thrifts reported increases of 

$4.7 billion in deposits and $4.1 billion in other 

borrowings, which helped to fund a $17.2-billion 

increase in assets. 

The thrift industry had 2,029 reporting institutions 

at the end of 1995, a net reduction of 31 from the 

end of the third quarter and 123 from the end of 

1994. Commercial banks absorbed 14 savings 

institutions, with $6.2 billion in assets, through 

acquisitions and charter conversions during the 

fourth quarter. Consolidation within the thrift industry accounted for a decline of 19 institutions. 

Two commercial banks, with $73 million in assets, 

converted to thrift charters in the fourth quarter. 

No thrifts failed in the fourth quarter. For the full 

year only two thrifts failed, the fewest since 1975. 

Eighteen institutions, with $3.6 billion in assets, 

converted from mutual to stock ownership during 

the quarter. The number of "problem" institutions 

fell to 49 from 59 at the end of the third quarter. 

Assets of "problem" institutions declined from 

$17.2 billion to $14.2 billion. 

Annual Net Charge-Off Rates on Loans 

1990-1995 

% of Loans 

.. ... .. 3.0 . . . . .. .. ..·

7· ··.. .........·•··•·••

•, • C&I •, 

\ 

2.0 \ - ·-·-· ·· •, . , / .. .. ·

.

. , · ' Loans to Individuals .. • -. • -. . \ --,-. . - -. 

1.0 Total Loans 

/ ;aaaaa:a 

..........••• 

/ 

Real Estate 

0 ......_____...__, ___._, __ ___,_,___,.__ __ ......., 0. 1990 1991 1992 1993 1994 1995 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Fourth Quarter 1995 
49 

$14 $92 

4.1 

TABLE 1-B. Selected Indicators, FDIC-Insured Savin s Institutions* 

Return on assets (%) ............................................... 

Return on equity (%) ............................................... 

Core capital (leverage) ratio (%) ............................. 

Noncurrent assets plus 

other real estate owned to assets (%) ................... 

Net charge-offs to loans (%) .................................... 

Asset growth rate (%) .............................................. 

Net interest margin(%) ........................................... 

Net operating income growth (%) ............................ 

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

Percentage of unprofitable institutions .................... 

1995 1994 1993 

0.78 

9.41 

7.80 

1.20 

0.34 

1.70 

3.09 

13.92 

2,029 

5.87 

0.66 

8.27 

7.65 

1.38 

0.51 

0.77 

3.34 

22.24 

2,152 

6.97 

0.70 

9.24 

7.45 

2.10 

0.65 

-2.85 

3.48 

21.21 

2,262 

5.88 

1992 1991 1990 

0.65 0.08 

9.48 1.26 

6.77 5.54 

3.07 3.96 

0.59 0.65 

-7.44 -11.61 

3.40 2.76 

574.61 N/M 

2,390 2,561 

7.57 18.35 

-0.37 

-6.68 

4.62 

3.98 

0.61 

-11.79 

2.27 

N/M 

2,815 

30.09 

Number of problem institutions ................................ 71 146 276 410 480

Assets of problem institutions (in billions) ............... $39 $183 $291 $298

Number of failed/assisted institutions ...................... 2 4 8 81 163 223

TABLE 11-B. Aggregate Condition and Income Data, FDIC-Insured Savlnas Institutions* 

(doll/fr figures In mil/Ions) Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

1995 1995 1994 94:4-95:4 

Number of institutions reporting .............................................. . 2,029 2,060 2,152 -5.7 

Total employees (full-time equivalent) .................................... . 250,260 250,530 261,457 -4.3 

CONDITION DATA 

Total assets ............................................................................ . $1,025,741 $1,024,673 $1,008,564 1.7 

Loans secured by real estate ........................................... . 609,978 612,388 602,917 1.2 

1-4 Family residential. .................................................... . 477,711 479,484 467,893 2.1 

Multifamily residential property ....................................... . 59,921 61,493 62,673 -4.4 

Commercial real estate ......................................... , ....... , .. 50,623 50,296 52,328 -3.3 

Construction, development and land .............................. . 21,723 21,115 20,023 8.5 

Commercial & industrial loans .......................................... . 12,215 12,002 9,889 23.5 

Loans to individuals .............................................. , ........... . 40,421 39,846 38,577 4.8 

Other loans & leases .................................................... , ... . 1,964 1,791 1,605 22.4 

Less: Unearned income & contra accounts ............ , ......... . 9,367 9,953 10,201 -8.2 

Total loans & leases ........................................................... . 655,210 656,074 642,787 1.9 

Less: Reserve for losses .................................................... . 7,302 7,311 7,726 -5.5 

Net loans & leases ................................................................ . 647,908 648,763 635,061 2.0 

Securities .............................................................................. . 288,563 290,454 290,276 -0.6 

Other real estate owned ....................................................... . 3,157 3,497 4,416 -28.5 

Goodwill and other intangibles ............................................. . 6,864 6,846 5,746 19.5 

All other assets ........................................................... , ......... . 79,249 75,113 73,064 8.5 

Total liabilities and capital... .............................................. , ..... . 1,025,741 1,024,673 1,008,564 1.7 

Deposits ................................................................................ . 741,892 742,463 737,166 0.6 

Other borrowed funds ........................................................... . 182,514 182,424 178,368 2.3 

Subordinated debt ................................................................ . 2,581 2,543 2,395 7.8 

All other liabilities .......................................................... , ....... . 12,690 12,130 10,701 18.6 

Equity capital .............................................................. , ......... . 86,063 85,114 79,934 7.7 

Loans and leases 30-89 days past due .................................. . 9,293 8,569 8,579 8.3 

Noncurrent loans and leases .................................................. . 9,179 8,932 9,519 -3.6 

Restructured loans and leases ............................................... . 5,975 6,342 7,285 -18.0 

Direct and indirect investments in real estate ......................... . 319 327 415 -23.2 

Mortgage-backed securities ................................................... . 215,660 211,907 214,009 0.8 

Earning assets .................................................................... , ... . 958,940 959,438 941,929 1.8 

FHLB Advances (TFR filers only) .............. " .......................... .. 85,143 80,374 88,861 -4.2 

Unused loan commitments ..................................................... . 81,753 82,043 71,057 15.1 

Preliminary Preliminary 

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

INCOME DATA 1995 1994 %Change 1995 1994 94:4-95:4 

Total interest income ........................................... .. $70,994 $63,470 11.9 $18,671 $17,054 9.5 

Total interest expense .......................................... . 42,528 33,411 27.3 11,273 9,510 18.5 

Net interest income ............................................ . 28,466 30,059 -5.3 7,398 7,544 -1.9 

Provision for loan losses ...................................... . 2,110 2,481 -15.0 634 631 0.4 

Total noninterest income ...................................... . 7,119 6,123 16.3 1,540 1,867 -17.5 

Total noninterest expense .................................... . 21,831 23,231 -6.0 5,706 6,085 -6.2 

Securities gains (losses) ...................................... . 464 94 393.5 134 (194) N/M 

Applicable income taxes ....................................... . 4,161 3,780 10.1 851 889 -4.3 

Extraordinary gains, net ...................................... . (321) (424) N/M (81) 8 N/M 

Net income ......................................................... . 7,627 6,361 19.9 1,802 1,621 11.2 

Net charge-offs ..................................................... . 2,149 3,085 -30.3 546 702 -22.2 

Cash dividends ..................................................... . 4,083 2,598 57.2 1,633 1,058 54.3 

Net operating income ......................................... . 7,634 6,701 13.9 1,800 1,730 

'Excludes institutions in Resolution Trust Corporation conservatorship and one self-liquidating instltulidn. NIM - Not meaningful 

FDIC Quarterly Banking Profile 

Fourth Quarter 1995 11 FDIC-Insured Savings Institutions 
TABLE 111-B. Full Year 1995, FDIC-Insured Savings Institutions• 

FULi. YEAR Preliminary 

(The way It Is ... ) 

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

All 

Institutions 

Asset Size Distribution Geooraohic Distribution by Region 

Less 

than $100 

Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$5 Billion 

Greater 

than $5 

Billion 

East I West 

Northeast 

754 

Southeast 

305 

Central I

520 

Midwest 

153 

Southwest 

137 

West 

2,029 909 959 130 31 160

Total assets (in billions)............................. $1,025.7 $46.7 $278.5 $281.3 $419.3 $352.3 $70.9 $169.8 $52.2 $74.9 $305.7 

Total deposits (in billions) .......................... 741.9 39.6 223.2 208.0 271.2 278.1 54.6 124.1 35.6 47.3 202.1 

Net income (in millions) ............................. 7,626.9 304.8 2,164.0 2,280.2 2,877.9 2,929.2 594.2 1,353.2 439.8 764.3 1,546.4 

% of unprofitable institutions ..................... 5.9 7.3 4.2 8.5 6.5 4.2 8.2 3.5 3.9 4.4 20.0 

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

Performanc:e Ratios (%) 

46.7 39.1 51.7 60.0 61.3 48.9 48.9 41.9 49.7 47.4 44.4 

Yield on earning assets ............................. 7.71 7.83 7.73 7.79 7.64 7.70 7.86 7.75 7.81 7.84 7.63 

Cost of funding earning assets .................. 4.62 4.34 4.33 4.56 4.89 4.17 4.63 4.68 4.80 5.14 4.93 

Net interest margin .................................... 3.09 3.49 3.40 3.23 2.75 3.53 3.23 3.07 3.01 2.71 2.70 

Noninterest income to earning assets ....... 0.77 0.55 0.60 0.85 0.87 0.64 0.73 0.87 0.95 1.00 0.79 

Noninterest expense to earning assets ..... 2.37 2.86 2.59 2.52 2.06 2.54 2.50 2.42 2.31 2.25 2.17 

Net operating income to assets ................. 0.78 0.64 0.77 0.78 0.79 0.85 0.81 0.86 0.90 0.97 0.58 

Return on assets ....................................... 0.78 0.67 0.80 0.84 0.72 0.88 0.87 0.85 0.98 1.05 0.51 

Return on equity ........................................ 9.41 6.43 8.49 10.20 10.12 9.95 9.57 9.42 11.30 14.44 7.09 

Net charge-offs to loans and leases .......... 0.34 0.14 0.17 0.38 0.45 0.39 0.14 0.14 0.18 0.23 0.47 

Loan loss provision to net charge-offs ...... 

Condition Ratios (%) 

Loss allowance to: 

98.17 118.49 126.37 106.48 85.84 87.28 116.26 135.17 128.30 150.15 93.00 

Loans and leases .................................... 1.11 0.81 1.04 1.27 1.10 1.32 0.93 0.77 0.80 1.00 1.21 

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

Noncurrent assets plus 

79.56 71.40 90.67 82.94 72.43 76.81 66.06 115.72 121.43 66.46 76.98 

other real estate owned to assets ........... 1.20 1.00 0.99 1.39 1.24 1.40 1.14 0.53 0.61 1.21 1.46 

Noncurrent RE loans to RE loans ............. 1.40 1.09 1.12 1.53 1.56 1.71 1.40 0.62 0.64 1.60 1.60 

Equity capital ratio..................................... 8.39 10.74 9.84 8.54 7.06 9.05 9.50 9.05 8.48 7.60 7.18 

Core capital (leverage) ratio ...................... 7.80 10.50 9.46 7.95 6.28 8.37 8.96 8.62 7.74 7.15 6.60 

Gross r®al estate assets to gross assets .. 79.54 72.13 74.44 79.74 83.64 73.86 76.51 79.77 78.23 78.86 87.04 

Gross 1-4 family mortgages to gr. assets. 45.83 51.51 45.96 41.79 47.82 41.33 47.42 50.37 47.22 39.57 49.42 

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

Growth Rates (year-to-year, %) 

87.33 78.89 80.21 83.10 97.67 73.32 84.94 89.47 93.29 96.60 102.72 

Assets ....................................................... 1.7 - . 6.5 -13.7 9.2 -1.8 5.8 -3.3 

Equity capital ............................................. 7.7 . . . 13.2 -4.6 12.9 8.0 14.6 -0.3 

Net interest income ................................... -5.3 . . . -2.4 -16.4 -4.2 -11.3 18.7 -9.9 

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

Noncurrent assets plus 

19.9 - - 2.3 -9.8 18.7 115.8 33.1 68.1 

other real estate owned ........................... -11.5 - - -18.5 -8.2 16.7 -1.2 -6.4 -9.5 

Net charge-offs .......................................... -30.3 - . -16.0 -19.5 43.8 17.6 19.5 -45.7 

Loan loss provision ................................... 

PRIOR FULL YEAR 

(The way it was . . . ) 

-15.0 - . - - -5.5 0.3 61.5 -2.2 131.2 -34.7 

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

....................................... 1990 2,815 1,322 1,252 205 36 982 521 666 203 188 255 

Total assets (in billions) ..................... 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 

....................................... 1990 1,259.2 64.4 364.8 424.4 405.6 411.2 151.9 172.2 55.7 77.5 390.7 

Return on assets (%) ........................ 1994 0.66 0.79 0.77 0.82 0.43 0.89 0.84 0.76 0.40 0.97 0.30 

....................................... 1992 0.65 0.86 0.81 0.67 0.47 0.59 0.77 0.89 1.10 1.55 0.34 

....................................... 1990 

Net charge-offs to loans & leases (%) 

-0.37 0.06 -0.21 -0.57 -0.37 -0.79 -0.52 0.25 0.07 -0.05 -0.27 

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

....................................... 1992 0.59 0.23 0.37 0.67 0.76 0.89 0.38 0.20 0.21 0.34 0.60 

....................................... 1990 

Noncurrent assets plus 

0.61 0.25 0.57 0.73 0.58 0.90 0.60 0.24 0.39 0.77 0.46 

OREO to assets (%) ............... 1994 1.38 1.09 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 

....................................... 1990 3.98 2.37 3.48 4.91 3.72 4.85 3.96 1.37 2.55 13.21 2.60 

Equity capital ratio (%) ...................... 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 

....................................... 1990 5.36 7.27 6.34 4.94 4.62 6.09 4.87 6.38 4.42 3.04 4.93 

'Excludes 1nst1tuhons m Resolution Trust Corporation conservatorsh1p and one self-liqu1datmg mshtut1on. 

REGIONS: Northeast - Connecticut, Delaware, District of Columbia, Maine, Ma,yfand, Massachusetts, New Hampshire, New Jersey, New York, Pemsylvarva, Puerto Rico, Rhode Island, 

Vermont, U.S. Virgin Islands 

Southeast-Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia Central - Illinois, Indiana, Kentucky, Michigan, Ohio, Wisconsin 

Midwest - Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota 

Southwest- Arkansas, Louisiana, New Mexico, Oklahoma, Texas 

West-Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Pacific Islands, Utah, Washington, Wyoming 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 12 Fourth Quarter 1995 
------------ -

959 

6.9 5.8 

3.45 

-3.1 

4.3 

-3.5 -5.9 

5.49 

7.44 

94 

6.63 

7.89 

TABLE IV-B. Fourth Quarter 1995, FDIC-Insured Savings Institutions* 

Asset Size Distribution Geographic Distribution by ReQion 

East Less $100 Million $1 Billion Greater I West

FOURTH QUARTER Preliminary All than $100 to to than $5 North- South- Mid- South- I (The way It Is ... ) Institutions Million $1 BIiiion $5 Billion Billion east east Central west west West

Number of institutions reporting ................ 2,029 909 130 31 754 305 520 153 137 160 

Total assets (in billions) ............................. $1,025.7 $46.7 $278.5 $281.3 $419.3 $352.3 $70.9 $169.8 $52.2 $74.9 $305.7

Total deposits (in billions) .......................... 741.9 39.6 223.2 208.0 271.2 278.1 54.6 124.1 35.6 47.3 202.1 

Net income (in millions) ............................. 1,802 77 560 536 

% of unprofitable institutions ..................... 8.1 10.8 5.1 8.5 

628 728 148 261 256 315 

19.4 1 9.5 2.6 9.5 22.5 

% of institutions with earnings gains ......... 48.8 42.0 53.0 62.3 64.5 49.3 46.9 45.0 52.9 52.6 55.6

Performance Ratios (annualized, %) 

Yield on earning assets ............................. 7.88 7.96 7.85 7.91 7.88 7.78 7.98 8.00 8.31 8.01 7.82 

Cost of funding earning assets .................. 4.76 4.51 4.47 4.65 5.06 4.33 4.73 4.92 5.21 5.16 5.00 

Net interest margin .................................... 3.12 3.38 3.26 2.82 3.45 3.25 3.08 3.10 2.85 2.82

Noninterest income to earning assets ....... 

Noninterest expense to earning assets .... 

Net operating Income to assets ................. 

Return on assets ....................................... 

Return on equity ........................................ 

Net charge-offs to loans and leases .......... 

Loan loss provision to net charge-offs ...... 

0.65 

2.41 

0.71 

0.71 

8.49 

0.34 

115.97 

0.59 

2.95 

0.57 

0.67 

6.24 

0.13 

140.45 

0.64 

2.65 

0.75 

0.81 

8.33

0.21 

113.97 

0.81 

2.56 

0.68 

0.77 

9.11 

0.39 

150.99 

0.56 

2.08 

0.72 

0.61 

8.53 

0.41 

94.61 

0.62 

2.57 

0.78 

0.84 

9.32 

0.41 

93.71 

0.76 

2.56 

0.76 

0.84 

9.01 

0.12 

161.11 

0.83 

2.57 

0.79 

0.63 

6.94 

0.14 

130.91 

0.93 1.00 0.44 

2.44 2.25 2.13 

0.89 1.27 0.41 

0.79 1.37 0.41 

9.07 18.17 5.66 

0.17 0.30 0.44 

147.52 160.65 122.34 

Growth Rates (year-to-year,%) 

Net interest income ................................... -1.9 -16.7 -0.5 -4.6 13.1 0.8 

Net income ................................................ 11.2 - . 10.8 -5.2 N/M 59.4 -20.7 

Net charge-offs .......................................... -22.2 - -7.1 -13.0 37.2 -48.8 49.5 -38.5 

Loan loss provision ................................... 0.4 - . 49.7 -42.5 190.2 -8.8

PRIOR FOURTH QUARTERS 

(The way It was ... ) 

Return on assets (%) ........................ 1994 

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

....................................... 1990 

Net charge-offs to loans&leases (%) 

....................................... 1994 

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

....................................... 1990 

0.65 

0.59 

-0.94 

0.45 

0.69 

0.91 

0.69 

0.83 

-0.28 

0.11 

0.24 

0.36 

0.63 

0.77 

-0.70 

0.27 

0.42 

0.89 

0.80 

0.73 

-1.23 

0.44 

0.73 

1.09 

0.55 

0.26 

-0.97 

0.63 

0.96 

0.86 

0.80 

0.63 

-1.63 

0.47 

1.05 

1.53 

0.70 

0.69 

-0.82 

0.13 

0.36 

0.76 

0.72 

0.90 

0.11 

0.12 

0.21 

0.25 

-0.08 

1.33 

0.39 

0.32 

0.26 

0.41 

1.01 

1.60 

-0.07 

0.28 

0.49 

0.56 

0.51 

0.07 

-1.09 

0.70 

0.73 

0.71 

'Excludes institutions in Resolution Trust Corporation conservatorsh1p and one self-liquidating institution. N/M · Not meaningful 1During the quarter, one institution merged with another wholly owned subsidiary thrift. The resulting combined institution shows 

a loss for the quarter due to the computational methodology used to derive quarterly income from year-to-date reported earnings. 

U.S. Treasury Yield Curve 

December 31, 1994 - December 31, 1995 

Spot Yield (%) 

Sr---- - ---- . - · - · - · -· -· - · - · -· ,.- . ., / 

7 ' 12/31/94 

, 

9/30/95 , .... / ········•·.. , 

·················--·······

·

········· 

6  

, 

-- ../ 

······ / 

5 ..- 12131195 

I . I 4 

Maturity 3-Month 6-Month 1 Year 2 Year 3 Year 5 Year 7 Year 10Year 30 Year 

12/31/95 5.10 5.17 5.18 5.18 5.25 5.38 5.58 5.96 

9/30/95 5.40 5.57 5.65 5.83 5.91 6.01 6.11 6.17 6.49 

6/30/95 5.60 5.59 5.65 5.79 5.88 5.98 6.12 6.21 

3/31/95 5.70 5.85 6.49 6.80 6.92 7.08 7.17 7.20 

12/31/94 5.53 6.22 7.20 7.69 7.80 7.83 7.84 7.84 

Source: Federal Reserve's H.15 Statistical Release 

FDIC Quarterly Banking Profile 

Fourth Quarter 1995 13 FDIC-Insured Savings Institutions 
TABLE V-8. Loan Performance, FDIC-Insured Savings Institutions* 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East 

Oecember 31, 1995 All than $100 to to than $5 North- SouthInstitutions Million $1 Billion $5 Billion Billion east east Central 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate .............................. 1.35 2.20 1.37 1.22 1.32 1.48 1.54 1.18 

Construction, development and land ..................... 1.31 1.44 1.36 1.02 1.55 0.92 1.16 1.29 

Commercial real estate ......................................... 1.23 2.32 1.38 1.32 0.77 1.49 1.33 1.19 

Multifamily residential real estate .......................... 0.85 1.53 1.16 0.78 0.76 1.05 1.31 1.17 

1-4 Family residential. ........................................... 1.43 2.26 1.39 1.27 1.44 1.54 1.61 1.17 

Commercial and industrial loans ............................. 1.36 2.77 1.93 1.25 0.52 1.37 1.82 1.13 

Loans to individuals ................................................. 2.17 2.66 2.13 2.61 1.81 2.59 2.67 2.28 

Percent of Loans Noncurrent** 

All real estate loans ................................................. 1.40 1.09 1.12 1.53 1.56 1.71 1.40 0.62 

Construction, development and land ..................... 1.46 1.22 1.43 1.88 1.00 3.11 0.90 0.95 

Commercial real estate ......................................... 2.47 1.79 2.18 3.38 1.85 3.25 1.57 1.66 

Multifamily residential real estate .......................... 1.83 1.45 1.73 2.59 1.44 2.28 1.55 0.79 

1-4 Family residential. ........................................... 1.24 1.00 0.90 1.10 1.56 1.38 1.43 0.52 

Commercial and industrial loans ............................. 1.75 2.47 1.89 2.06 0.98 2.29 1.52 1.18 

Loans to individuals ................................................. 0.91 1.07 0.85 1.06 0.82 1.28 0.89 1.07 

Percent of Loans Charged-off 

(net, annual) 

All real estate loans ................................................. 0.28 0.11 0.14 0.29 0.38 0.32 0.09 0.05 

Construction, development and land ..................... 0.35 0.15 0.27 0.74 0.02 1.25 0.07 0.02 

Commercial real estate ......................................... 0.74 0.53 0.36 1.00 0.92 0.99 0.29 0.16 

Multifamily residential real estate .......................... 0.62 0.57 0.52 0.56 0.69 0.60 0.87 0.22 

1-4 Family residential. ........................................... 0.18 0.05 0.07 0.12 0.29 0.17 0.04 0.03 

Commercial and industrial loans ............................. 0.59 0.91 0.48 0.87 0.23 0.86 0.27 0.06 

Loans to individuals ................................................. 1.17 0.38 0.47 1.34 1.57 1.15 0.74 1.42 

Loans Outstanding (in billions) 

All real estate loans ................................................. $610.0 $29.5 $169.8 $159.7 $250.9 $187.5 $43.8 $104.3 

Construction, development and land ..................... 21.7 1.6 10.1 6.0 4.0 4.4 4.0 4.7 

Commercial real estate ......................................... 50.6 2.3 17.7 16.7 13.9 21.7 4.0 5.7 

Multifamily residential real estate .......................... 59.9 1.1 11.5 17.5 29.9 14.0 1.3 7.1 

1-4 Family residential... ......................................... 477.7 24.5 130.6 119.4 203.2 147.4 34.6 86.9 

Commercial and industrial loans ............................. 12.2 0.6 3.9 4.7 3.0 6.5 1.0 1.5 

Loans to individuals ........................................•........ 40.4 2.0 10.4 12.1 15.9 13.1 3.5 7.5 

Memoranda: 

Other Real Estate Owned (In millions)*** 

All other real estate owned ...................................... $3,157 $111 $697 $1,223 $1,125 $1,384 $149 $156 

Construction, development and land ..................... 701.5 25.6 175.3 434.1 66.5 448.9 46.4 13.3 

Commercial real estate ......................................... 826.6 45.2 217.1 373.4 190.9 460.3 45.3 56.9 

Multifamily residential real estate .......................... 578.0 5.6 103.3 244.4 224.7 161.0 6.0 16.6 

1-4 Family residential. ........................................... 1,449.3 49.0 285.4 334.9 780.1 437.1 70.6 80.5 

Troubled Real Estate Asset Rates**** 

(% of total RE assets) 

All real estate loans ................................................. 1.91 1.46 1.52 2.28 2.00 2.43 1.73 0.77 

Construction, development and land ..................... 4.55 2.75 3.12 8.47 2.62 12.12 2.04 1.23 

Commercial real estate ......................................... 4.03 3.64 3.36 5.49 3.19 5.26 2.68 2.64 

Multifamily residential real estate .......................... 2.77 1.96 2.61 3.93 2.17 3.39 2.02 1.02 

1-4 Family residential. ........................................... 1.54 1.19 1.11 1.37 1.94 1.67 1.63 0.61 

*Excludes 1nst1tut1ons rn Resolution Trust Corporation conservatorshrp and one self-lrqwdatmg 1nst1tut1on. 

**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. 

Insurance Fund Reserve Ratios 

Percent of Insured Deposits 

I I

Midwest 

1.44 

1.34 

2.06 

0.85 

1.43 

2.99 

2.59 

0.64 

0.75 

1.99 

0.79 

0.51 

2.16 

0.51 

0.06 

0.00 

0.46 

0.12 

0.02 

0.15 

1.11 

$29.8 

1.2 

2.2 

1.4 

25.0 

0.6 

3.5 

$98 

11.4 

57.9 

13.9 

34.1 

0.96 

1.65 

4.56 

1.78 

0.64 

Target Ratio 1.15 1.22 1.29 1.31 1.30 

Fund Balance and Insured Deposits* 

1.25 

DSAIF 

aBIF 

-0.36 

($ Millions) 

BIF Fund BIF-lnsured 

Balance Deposits 

12/89 13,210 1,873,837 

12/90 4,045 1,929,612 

12/91 (7,028) 1,957,722 

12/92 (101) 1,945,623 

12/93 13,122 1,906,885 

12/94 21,848 1,895,182 

3/95 23,185 1,899,092 

6/95 24,677 1,914,560 

9/95 25,075 1,917,194 

12/95 25,454 1,952,543 

• Insured Deposit Amounts are Estimates. 

SAIF Fund SAJF-lnsured 

Balance Deposit 

0 882,920 

18 830,028 

101 776,351 

279 729,458 

1,157 695,574 

1,937 693,432 

2,216 704,526 

2,587 709,243 

3,084 710,756 

3,358 711,017 

West 

Southwest 

1.32 

1.31 

1.24 

0.76 

1.39 

1.49 

0.93 

1.60 

0.53 

2.18 

4.71 

1.28 

1.65 

0.45 

0.12 

0.05 

0.16 

0.06 

0.13 

0.71 

0.83 

$41.0 

3.1 

3.8 

3.5 

30.7 

0.7 

6.5 

$209 

41.7 

19.1 

90.5 

89.9 

2.10 

1.87 

2.67 

7.14 

1.57 

West 

1.27 

1.85 

0.66 

0.70 

1.43 

0.68 

1.98 

1.60 

1.75 

1.95 

1.61 

1.57 

0.42 

0.67 

0.44 

0.31 

0.90 

0.77 

0.33 

0.33 

1.49 

$203.5 

4.3 

13.3 

32.8 

153.2 

1.9 

6.2 

$1,161 

139.9 

187.0 

289.9 

737.2 

2.16 

4.85 

3.31 

2.47 

2.04 

--

12/89 12/90 12/91 12/92 12/93 12194 3/95 6/95 9/95 12195 

FDIC-Insured Savings Institutions 

FDIC Quarterly Banking Profile 

14 Fourth Quarter 1995 
ALL FDIC-INSURED INSTITUTIONS 

• Domestic Deposits Surge In The Fourth Quarter

• Growth Of The SAIF Assessment Base Flattens

• No Insured Institutions Fail In The Fourth Quarter

At the nation's 11,970 FDIC-insured institutions, total 

assets grew $84 billion from September 30 to December 

31, compared to growth of $90 billion during the fourth 

quarter of 1994. Fourth-quarter asset growth was funded 

to a greater extent by deposits in 1995 than in 1994. Total 

deposits increased $96 billion during the fourth quarter of 

1995, with most of this growth occurring in domestic 

deposits at commercial banks, which were up $91 billion. 

In 1994's fourth quarter, by comparison, total deposits 

increased $70 billion, including just $42 billion in domestic 

deposit growth. 

The reserve ratio of the Bank Insurance Fund (BIF) was 

1.30 percent of insured deposits on December 31, down 

nominally from 1.31 percent on September 30 but still 

above the statutory minimum of 1.25 percent. The reserve 

ratio of the Savings Association Insurance Fund (SAIF) 

rose from 0.43 percent to 0.47 percent during the fourth 

quarter but remains far below the target level of 1.25 

percent. As a result of the BIF's full capitalization, the 

FDIC was able to reduce BIF assessment rates twice in 

the latter half of 1995. The average BIF assessment rate 

fell from 23.3 cents per $100 of assessable deposits to 

just 0.4 cents (effective January 1, 1996), improving the 

attractiveness of BIF-assessable deposits relative to 

other funding alternatives. Because SAIF assessment 

rates cannot be lowered significantly until the fund is fully 

capitalized, the average assessment rate for SAIF members remains at 23.7 cents per $100.1 This premium

disparity between the BIF and the SAIF may partially 

explain deposit growth patterns in 1995. Deposits assessable by the BIF grew $110 billion (4.6 percent) during 

1995, with $83 billion of the increase coming in the fourth 

quarter. Deposits assessable by the SAIF grew $20 billion 

(2.8 percent) in 1995 but decreased, by less than $1 

billion, in the fourth quarter.2 Other factors, such as loan

demand, also may affect deposit growth patterns. 

No insured institutions failed in the fourth quarter. For all 

of 1995, failures included six Bl F-member commercial 

banks, with total assets of $750 million, and two SAIFmember thrifts, with total assets of $456 million. This is 

the lowest number of bank failures since 1977, when there 

were also six, and the second consecutive year in which 

just two SAIF members failed. 

1

The FDIC Board has the authority to lower SAIF rates to 18 cents through 

the end of 1997, at which time rates must return to a minimum of 23 

cents until the SAIF is capitalized. 

2Changes in assessment base figures from September 30 to December 

31 are affected by the annual Oakar adjustment. Acquisitions do not 

affect this adjustment, but deposit sales can reduce an institution's 

reported Oakar deposit amount and increase the deposits attributable 

to its primary insurance fund. For December 31, 1995, there was an 

especially large adjustment that resulted in a decrease in SAIF deposits 

of $3.3 billion, compared to September 30, 1995, and a corresponding 

increase in BIF deposits. The adjustment approach is being reviewed 

for possible modification. 

FDIC Quarterly Banking Profile 

Fourth Quarter 1995 15 

"Dakar" deposits. A member of one insurance fund can 

acquire deposits insured by the other fund, but this portion 

of the acquiring institution's deposits retains coverage 

under the seller's fund. As of December 31, 803 BIF 

members held $219 billion in SAIF-assessable deposits. 

This represents an increase of $8.5 billion (4.0 percent) 

since September 30 and $37 billion (20.3 percent) since 

year-end 1994. More than half of the fourth quarter's 

increase was attributable to a single intracompany consolidation in which a SAIF-member thrift was merged into 

an affiliated BIF-member thrift. The share of the SAIF 

assessment base held by BIF members rose to 29.8 

percent on December 31, compared to 28.6 percent on 

September 30 and 25.4 percent on December 31, 1994. 

As of year-end 1995, 72 SAIF members held $10.1 billion 

in BIF-assessable deposits, or 0.4 percent of the BIF 

assessment base. This amount remained relatively stable 

during 1995. 

"Sasser" institutions. Institutions are generally prohibited from converting their membership from one insurance 

fund to the other. Since 1989, however, SAIF-member 

savings associations have been permitted to convert their 

charter to that of a savings or commercial bank while 

retaining SAIF membership. Converted institutions leave 

OTS supervision and become subject to supervision by 

one of the three federal banking agencies. As of December 31, 1995, there were 317 SAIF-member institutions 

that had converted to bank charters, including 236 statechartered savings banks, 60 state-chartered commercial 

banks and 21 national banks. These 317 institutions 

held SAIF-assessable deposits of $56.4 billion, or 7.7 

percent of the total SAIF assessment base. 

FICO bonds. The Financing Corporation (FICO) has a 

first claim on up to $793 million of SAIF assessment 

revenue each year in order to fund interest payments on 

FICO bonds. These 30-year bonds, issued in the years 

1987 through 1989, were sold to fund losses incurred by 

the now-defunct Federal Savings and Loan Insurance 

Corporation. Only assessments from SAIF-member savings associations are available to the FICO, which excludes 

SAIF assessments paid by BIF-memberOakarsand SAIFmember Sassers. The aggregate share of the SAIF assessment base held by Oakars and Sassers increased to 

37.5 percent on December 31, from 36.3 percent on 

September 30 and 32. 7 percent as of year-end 1994. At 

current assessment rates, the FICO requires an available 

assessment base of $329 billion to meet its annual draw. 

The FICO-available base, which has been shrinking 

steadily, was $459 billion on December 31, down from 

$479 billion at year-end 1994 and $538 billion at year-end 

1993. 

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

December 31, 1995* 

(dollar figures in millions) Number of Total Domestic Estimated Insured Deposits 

Institutions Assets Deposits** BIF 

Private-Sector Commercial and Savings Institutions 

FDIC-Insured Commercial Banks ......................................... 9,941 4,312,678 2,573,465 1,778,440 

BIF-member. ..................................................................... 9,860 4,286,494 2,554,207 1,776,995 

SAIF-member ................................................................... 81 26,184 19,257 1,445 

FDIC-Insured Savings Institutions ........................................ 2,029 1,025,741 741,892 171,871 

OTS-Supervised Savings Institutions ............................... 1,436 770,973 540,505 32,876 

BIF-member ................................................................... 26 99,269 65,633 24,538 

SAIF-member* ............................................................... 1,410 671,704 474,872 8,338 

FDIC-Supervised State Savings Banks ......... � ................. 593 254,767 201,387 138,995 

BIF-member ................................................................... 357 203,708 161,578 138,698 

SAIF-member ................................................................ 236 51,059 39,808 298 

Total Private-Sector Commercial and 

Savings Institutions ........................................................ 11,970 5,338,419 3,315,357 1,950,312 

BIF-member .......................................................................... 10,243 4,589,471 2,781,419 1,940,230 

SAIF-member ....................................................................... 1,727 748,947 533,938 10,081 

Other FDIC-Insured Institutions 

RTC Conservatorships*** ..................................................... 0 0 0 0 

U.S. Branches of Foreign Banks ......................................... 39 12,159 3,691 2,232 

Total FDIC-Insured Institutions ............................................ 12,009 5,350,577 3,319,048 1,952,543 

*Excludes one self-liquidating savings institution with less than $1 million in SAIF-insured deposits. 

**Excludes $454.1 billion in foreign office deposits, which are uninsured. 

***The last RTC conservatorship was resolved prior to September 30. 

$ Billions 

SAIF Assessment Base 

December 31, 1989 - December 31, 1995 

SAIF 

179,855 

165,469 

14,386 

531,162 

479,115 

38,681 

440,434 

52,047 

14,460 

37,587 

711,017 

218,610 

492,407 

0 

0 

711,017 

1,000 .----------------------. 

RTC Conservatorships 

329 

0 

($ Billions) 12/89 12/90 12/91 12/92 12/93 12/94 

Sasser Institutions 0.0 2.8 11.9 28.4 42.8 52.0 

Oakar Deposits (BIF-members) 2.1 34.0 69.8 80.5 139.9 181.7 

RTC Conservatorship 89.0 67.3 36.9 31.2 17.7 1.2 

All Other Institutions 851.6 766.0 693.2 615.2 520.3 479.2 

Total 942.7 870.0 811.7 755.3 720.8 714.1 

Sasser 

Institutions 

Oakar Deposits 

(BIF-members) 

3/95 6/95 9/95 

52.5 54.5 56.4 

196.1 204.2 210.2 

0.0 0.0 0.0 

477.7 473.0 468.4 

726.4 731.7 735.0 

12/95 

56.4 

218.7 

0.0 

459.3 

734.4 

Total 

1,958,295 

1,942,464 

15,831 

703,033 

511,991 

63,219 

448,772 

191,042 

153,157 

37,885 

2,661,328 

2,158,840 

502,488 

0 

2,232 

2,663,560 

All FDIC-Insured Institutions 16 

FDIC Quarterly Banking Profile 

Fourth Quarter 1995 
TABLE 1-C. Selected Indicators, All FDIC-Insured Institutions* 

(dollar figures in millions) 

f-- ------'1-'--9-'---95-'----- -1_99_4 ___ __ 1-'--9-'---93'------1--'9'---'9--=2 --1991 __ 1c...:9--=-9-=-0 

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

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

Total deposits ................................................................. . 

Number of problem institutions ....................................... . 

Assets of problem institutions (in billions) ....................... . 

Number of failed/assisted institutions ............................. . 

Assets of failed/assisted institutions (in billions) ............. . 

11,970 

$5,338,419 

3,769,445 

193 

$31 

8 

$1.21 

12,602 

$5,019 ,076 

3,611,603 

318 

$73 

15 

$1.57 

13,220 

$4,707,051 

3,528,473 

572 

$334 

50 

$9.67 

13,852 

$4,535,878 

3,527,034 

1,063 

$592 

181 

$88 

14,482 

$4,543,684 

3,594,345 

1,426 

$819 

271 

$142 

TABLE 11-C. Aggregate Condition and Income Data, All FDIC-Insured Institutions• 

(dollar figures in mil/Ions) Preliminary 

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

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

CONDITION DATA 

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

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

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

Home equity loans ...................................................... . 

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

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

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

Other real estate loans ................................................. . 

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

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

Credit cards & related plans ........................................... . 

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 ........................................................................ . 

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

Including RTC conservatorships and /BA 's: 

4th Quarter 

1995 

11,970 

1,734,725 

$5,338,419 

1,689,957 

1,103,607 

97,927 

95,714 

349,016 

90,429 

51,191 

673,736 

575,695 

224,291 

333,792 

15,225 

3,257,965 

60,119 

3,197,836 

1,099,669 

9,222 

37,030 

994,661 

5,338,419 

3,769,445 

849,139 

46,117 

237,994 

435,724 

43,066 

39,556 

9,869 

904 

544,801 

4,695,344 

2,237,881 

3rd Quarter 

1995 

12,111 

1,733,351 

$5,253,972 

1,683,275 

1,101,518 

97,651 

96,779 

344,579 

89,223 

51,176 

659,419 

558,308 

208,468 

326,579 

16,007 

3,211,573 

60,188 

3,151,385 

1,109,206 

10,503 

35,364 

947,515 

5,253,972 

3,673,756 

859,017 

46,267 

245,755 

429,177 

39,739 

40,422 

10,873 

954 

541,101 

4,634,331 

2,135,290 

4th Quarter 

1994 

12,602 

1,750,628 

$5,019,076 

1,600,624 

1,036,852 

93,215 

94,603 

335,458 

84,530 

49,182 

598,986 

525,681 

195,963 

292,264 

16,552 

3,001,002 

59,854 

2,941,149 

1,113,290 

13,983 

29,748 

920,907 

5,019,076 

3,611,603 

769,449 

43,151 

202,850 

392,024 

36,666 

40,225 

13,726 

1,025 

541,193 

4,411,956 

1,846,504 

Estimated BIF-insured deposits............................................ 1,952,543 1,917,181 1,895,182 

Domestic deposits (reflects Oakar adjustments)............... 2,575,966 2,483,892 2,462,650 

BIF balance (unaudited figures)........................................ 25,454 25,075 21,848 

BIF coverage ratio(%)*'.................................................... 1.30 1.31 1.15 

Estimated SAIF-insured deposits......................................... 711,017 710,769 693,433 

Domestic deposits (reflects Oakar adjustments)............... 742,547 743,479 721,515 

SAIF balance (unaudited figures)...................................... 3,358 3,084 1,937 

SAIF coverage ratio(%)"................................................. 0.47 0.43 0.28 

Estimated FDIC-insured deposits, BIF and SAIF................. 2,663,560 2,627,950 2,588,615 

Preliminary Preliminary 

15,158 

$4,648,668 

3,637,292 

1,492 

$640 

382 

$145 

% Change 

94 :4-95:4 

-5.0 

-0.9 

6.4 

5.6 

6.4 

5.1 

1.2 

4.0 

7.0 

4.1 

1 2.5 

9.5 

14.5 

14.2 

-8.0 

8.6 

0.4 

8.7 

-1.2 

-34.1 

24.5 

8.0 

6.4 

4.4 

10.4 

6.9 

17.3 

11.2 

17.5 

-1.7 

-28.1 

-1 1.8 

0.7 

6.4 

21.2 

3.0 

4.6 

16.5 

13.1 

2.5 

2.9 

73.4 

69.1 

2.9 

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

INCOME DATA 1995 1994 %Change 1995 1994 94:4-95:4 

Total interest income............................................. $373,657 $321,301 16.3 $97,173 $85,870 

Total interest expense........................................... 190,969 144,689 32.0 50,072 40,485 

Net interest income............................................. 182,688 176,612 3.4 47,101 45,385 

Provision for loan losses....................................... 14,659 13,442 9.1 4,416 3,564 

Total noninterest income....................................... 89,561 82,398 8.7 23,406 21,642 

Total noninterest expense..................................... 171,502 167,466 2.4 44,927 44,585 

Securities gains(losses)....................................... 1,009 (478) N/M 1 92 (1,109) 

Applicable income taxes........................................ 30,338 26,201 15.8 7,399 5,512 

Extraordinary gains, net........................................ (294) (439) N/M (80) 23 

13.2 

23.7 

·3.8 

23.9 

8.2 

0.8 

N/M 

34.2 

N/M 

�

Ne_�

t

�

in�

c

�

o�

m

�

e

�

···�

··-····· -�

··�

··

=

···

=

··�

···-····-·-··-···-··�

····-�

···

�

····· -··-··_··· _�

··�

···�� �

-5--'6-,'-4-'---

6'-'5�� �

5-'---

0'--',9-8

�

5 � 10.8c.____ __ �1'='3-'- ,8:.....7---'-7� 1c..:2:.c,2::.c81 1---'-' 3.0 

'Excludes institutions 1n RTC conservatorship, one self-hqu1dating savings institution, insured branches of foreign banks (18A's), unless 1nd1cated otherwise. 

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

FDIC Quarterly Banking Profile 

Fourth Quarter 1995 17 All FDIC-Insured Institutions 
TABLE 1-D. Selected Indicators, BIF-Member Depository Institutions* 

(dollar figures in millions) f--------1-99_5 _ __ 1_9_94 _ 19__93 ____ 1_9_9_2 ____ 199____ _1 _ 1990__ 

Number of institutions reporting...................................... 10,243 10,758 11,291 11,813 12,305 12,791 

Total assets..................................................................... $4,589,471 $4,246,781 $3,949,694 $3,711,612 $3,660,497 $3,646,863 

Total deposits.................................................................. 3,235,507 3,061,456 2,951,980 2,873,169 2,881,811 2,861,466 

Number of problem institutions........................................ 151 264 472 856 1,089 1,046 

Assets of problem institutions (in billions)........................ $20 $42 $269 $464 $61 0 $409 

Number of failed/assisted institutions.............................. 6 13 41 122 127 169 

_A ___ ss__et_s _o_ffa_ile__d.::.../a_ss__iste_ _d_

ins_ t_itu__tio_ns___,_

(in_bil_1'1o_ns__,_)_ 

.. ... _ .. _ ... _ _ .. .. _ -'----__ $�0.7__ _ _6 ---$1_

.43 __ _ --'-$3_.5_4 _____ $c._4____ 4 _ $-'---- 6_ _ _3 _ �$15 

TABLE 11-D. Selected Aggregate Condition and Income Data, BIF-Member Depository Institutions* 

(dollar figures in millions) Preliminary 

4th Quarter 3rd Quarter 4th Quarter % Change 

1995 1995 1994 94:4-95:4 

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

Commercial banks ............................................................... .. 

Savings institutions ............................................................... . 

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

CONDITION DATA 

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

Loans secured by real estate, total. ..................................... .. 

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

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

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

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

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

Reserve for losses ............................................................. .. 

Total deposits ...................................................................... .. 

Estimated insured deposits ................................................. .. 

BIF-insured deposits (estimated) ....................................... .. 

SAIF- insured deposits (estimated) .................................... .. 

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

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

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

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions: 

Well capitalized ..................................................................... . 

Adequately capitalized .......................................................... . 

Undercapitalized ................................................................... . 

Significantly undercapitalized ............................................... . 

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

Total assets: 

10,243 

9,860 

383 

1,545,667 

$4,589,471 

1,232,180 

737,976 

55,972 

316,097 

71,064 

665,593 

55,219 

3,235,507 

2,158,840 

1,940,230 

218,610 

33,311 

7,039 

373,544 

10,098 

121 

17 

4 

3 

Well capitalized...................................................................... $4,466,348 

Adequately capitalized........................................................... 120,346 

Undercapitalized.................................................................... 2,344 

Significantly undercapitalized ............................................... 288 

10,356 

9,971 

385 

1,542,423 

$4,492,417 

1,211,272 

723,943 

54,443 

311,484 

70,333 

651,596 

55,210 

3,130,338 

2,113,882 

1,904,704 

209,178 

34,454 

8,049 

367,026 

10,189 

149 

12 

6 

0 

$4,416,017 

74,499 

1,206 

694 

Critically undercapitalized ..................... _ .. ... _ _ .. _ ..... _ _ .. _-� 

.. ... _ .. _ .. _ ... _ .. _ _.. · �· �- -

---1_4__ _ 5 __ _ 0 

10,758 

10,371 

387 

1,545,128 

$4,246,781 

1,136,128 

668,549 

51,081 

300,884 

66,525 

592,905 

54,423 

3,061,456 

2,063,477 

1,881,802 

181,675 

33,848 

10,900 

332,290 

10,581 

140 

19 

12 

6 

$4,142,783 

98,784 

3,312 

1,211 

691 

Preliminary Preliminary 

-4.8 

-4.9 

-1.0 

0.0

8.1 

8.5 

10.4 

9.6 

5.1 

6.8 

12.3 

1.5 

5.7 

4.6 

3.1 

20.3 

-1.6

-35.4

12.4

-4.6

-13.6

-10.5

-66.7

-50.0

7.8 

21.8 

-29.2

-76.3

-79.0

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

INCOME DATA __ __ i-

-----:::-19c-:: -=

9--=

5=-=-_---,,--,19-=--:-

94----,--,--,--

0

/o_C_h_a....

,

ng�e

,_ __ _ 1995 1994 94 :4-95 :4 

Net interest income............................................... $162,586 $154,616 5.2 $41,844 $39,865 5.0 

Provision for loan losses....................................... 13,129 11,620 13.0 3,962 3,102 27.7 

Net income............................................................ 51,062 46,868 9.0 12,577 11,252 11.8 

Net charge-offs...................................................... 12,893 12,094 6.6 4,140 3,393 22.0 

Number of institutions reporting net losses........... 342 426 -19.7 797 1 056 -24.5

*Excludesinsured branches of foreign ban�------- ----------- _______ ! ____ _

BIF-Member Depository Institutions 18 

FDIC Quarterly Banking Pro file 

Fourth Quarter 1995 
TABLE 1-E. Selected Indicators, SAIF-Member Depository Institutions* 

(dollar figures In millions) t--__ 199__ _ 5 _ __ 1_99_4 _ __ 1_9_9_3 _ _____ 1992 _ 1991 

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

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

Total deposits ................................................................. . 

Number of problem institutions ....................................... . 

Assets of problem institutions (in billions) ...................... .. 

Number of failed/assisted institutions ............................. . 

Assets of failed/assisted institutions in billions ............. . 

1,727 

$748,947 

533,938 

42 

$11 

2 

$0.46 

1,844 

$772,295 

550,147 

54 

$31 

2 

$0.14 

1,929 

$757,3p7 

576,493 

100 

$65 

9 

$6 

2,039 2,177 

$824,266 $883,187 

653,865 712,533 

207 337 

$128 $209 

59 144 

$44 $79 

1990 

2,367 

$1,001,804 

775,826 

446 

$231 

213 

$130 

TABLE 11-E. Selected Aggregate Condition and Income Data, SAIF-Member Depository Institutions* 

(dollar figures In millions) Preliminary 

4th Quarter 

1995 

3rd Quarter 

1995 

4th Quarter 

1994 

% Change 

94:4-95:4 

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

Commercial banks ............................................................... .. 

Savings institutions ............................................................... . 

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

CONDITION DATA 

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

Loans secured by real estate, total ....................................... . 

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

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

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

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

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

Reserve for losses .............................................................. . 

Total deposits ....................................................................... . 

Estimated insured deposits .................................................. . 

BIF-insured deposits (estimated) ........................................ . 

SAIF-insured deposits (estimated) ..................................... . 

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

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

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

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions: 

Well capitalized ..................................................................... . 

Adequately capitalized ......................................................... . 

Undercapitalized .................................................................. .. 

Significantly undercapitalized ............................................... . 

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

Total assets: 

1,727 

81 

1,646 

189,058 

$748,947 

457,777 

365,631 

39,742 

32,920 

19,365 

8,143 

4,900 

533,938 

502,488 

10,081 

492,407 

6,246 

2,182 

62,180 

1,685 

37 

4 

1 

0 

1,755 

BO 

1,675 

190,928 

$761,555 

472,003 

377,576 

42,336 

33,095 

18,890 

7,822 

4,978 

543,417 

512,210 

10,619 

501,591 

5,967 

2,454 

62,151 

1,695 

54 

5 

1 

0 

1,844 

79 

1,765 

205,500 

$772,295 

464,496 

368,303 

43,521 

34,574 

18,005 

6,081 

5,431 

550,147 

522,005 

11,486 

510,519 

6,377 

3,082 

59,733 

1,747 

84 

B 

2 

3 

-6.3

2.5 

-6.7

-8.0

-3.0

-1.5

-0.7

-8.7

-4.8

7.6

33.9

-9.8

-3.0

-3.7

-12.2

-3.5

-2.1

-29.2

4.1 

-3.5

-56.0

-50.0

-50.0

-100.0

Well capitalized ..................................................................... . 736,131 $739,182 $701,820 4.9 

Adequately capitalized .......................................................... . 12,146 21,151 

Undercapitalized ................................................................... . 635 •1,189

Significantly undercapitalized ............................................. .. 35 

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

Preliminary 

Full Year Full Year 

INCOME DATA 1995 1994 %Change 

Net interest income............................................... $20,102 $21,996 -8.6

Provision for loan losses....................................... 1,530 1,822 -16.0

Net income............................................................ 5,403 4,117 31.2

Net charge-offs...................................................... 1,424 2,238 -36.4

Number of institutions reporting net losses........... 113 137 -17.5

33 

0 

Preliminary 

4th Quarter 

1995 

$5,257 

454 

1,300 

351 

156 

*Excludes institutions in Resolution Trust Corporation conservatorship and one self-liquidating institution.

65,516 -81 .5

2,046 -69.0

724 -95.2

2,189 -100.0

4th Quarter %Change 

1994 94:4-95:4 

$5,520 

462 

1,029 

480 

178 

-4.8

-1.B

26.3

-26.8

-12.4

FDIC Quarterly Banking Profile 

Fourth Quarter 1995 19 SAIF-Member Depository Institutions 
Number of FDIC-Insured 11Problem11 Institutions 

Number of Institutions 1990 -1995 

2,000 

1,500 

1,000 

500 

0 

I i I Savings Institutions 

Commercial Banks 

12/90 12/91 12/92 3/93 6/93 9/93 12/93 3/94 6/94 9/94 12/94 3/95 6/95 9/95 12/95 

Savings Institutions 480 410 276 255 209 169 146 118 95 84 71 71 64 59 49 

Commercial Banks 1,012 1,016 787 671 580 496 426 383 338 293 247 215 190 158 144 

$ Billions 

Assets of FDIC-Insured 11Problem11 Institutions 

1990 -1995 

..--------------------------------, 

1,000 

$819 

800 

$640 

600 $592 

400 

200 

0 

$544 

$454 

$384 

$334 

$142 $113 

CJ Savings Institutions 

- Commercial Banks

$95 $72

12/90 12/91 12/92 3/93 6/93 9/93 12/93 3/94 6/94 9/94 12/94 3/95 6/95 9/95 12/95 

Savings Institutions 298 291 184 167 128 103 92 89 71 

Commercial Banks 342 528 408 377 326 281 242 53 42 

All FDIC-Insured Institutions 20 

59 39 39 33 17 

36 33 27 23 20 

14 

17 

FDIC Quarterly Banking Profile 

Fourth Quarter 1995 
NOTES TO USERS 

This publication contains financial data and other information 

for depository institutions insured by the Federal Deposit Insurance Corporation (FDIC). These notes are an integral part of 

this publication and provide information regarding the comparability of source data and reporting differences over time. The 

information presented in the FDIC Quarterly Banking Profile is 

divided into the following groups of institutions: 

FDIC-Insured Commercial Banks 

(Tables I-A through V-A.) 

This section covers commercial banks insured by the FDIC 

either through the Bank Insurance Fund (BIF) or through 

the Savings Association Insurance Fund (SAIF). These 

institutions are regulated by and submit financial reports to 

one of the three federal commercial bank regulators (the 

Board of Governors of the Federal Reserve System, the 

FDIC or the Office of the Comptroller of the Currency). 

FDIC-Insured Savings Institutions 

(Tables 1-8 through V-8.) 

This section covers savings institutions insured by either 

BIF or SAIF that operate under state or federal banking 

codes applicable to thrift institutions, except for one selfliquidating institution primarily funded by the FSLIC Resolution Fund (FRF). Savings institutions that have been 

placed in Resolution Trust Corporation conservatorship 

are also excluded from these tables while in conservatorship. The institutions covered in this section are regulated 

by and submit financial reports to one of two Federal 

regulators - the FDIC or the Office of Thrift Supervision 

(OTS). 

FDIC-Insured Institutions by Insurance Fund 

(Tables 1-C through 11-E.) 

Summary balance-sheet and earnings data are provided 

for commercial banks and savings institutions according to 

insurance fund membership. BIF-member institutions may 

acquire SAIF-insured deposits, resulting in institutions with 

some deposits covered by both insurance funds. Also, 

SAIF members may acquire BIF-insured. deposits. The 

insurance fund membership does not necessarily reflect 

which fund insures the largest percentage of an institution's 

deposits. Therefore, the BIF-member and the SAIFmember tables each include deposits from both insurance funds. Depository institutions that are not insured by 

the FDIC through either the BIF or SAIF are not included 

in the FDIC Quarterly Banking Profile. U.S. branches of 

institutions headquartered in foreign countries and non-deposit trust companies are not included. Efforts are made 

to obtain financial reports for all active institutions. However, in some cases, final financial reports are not available 

for institutions that have closed or converted their charter. 

DATA SOURCES 

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFI EC) Ca// Reports and the OTS Thrift 

Financial Reports submitted by all FDIC-insured depository 

institutions. This information is stored on and retrieved 

from the FDIC's Research Information System (RIS) 

data base. 

FDIC Quarterly Banking Profile 

Fourth Quarter 1995 21 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting 

and accounting requirements of the FFIEC Ca// Reports. 

The detailed schedules of the Thrift Financial Reportreflect 

the consolidation of the parent thrift with all finance subsidiaries. All other subsidiaries are reported as investments 

on an equity basis or a cost basis. Some accounting 

differences exist, such as asset sales with recourse, for 

which the data necessary to reconcile these differences 

are not reported. 

All asset and liability figures used in calculating performance ratios represent average amounts for the period 

(beginning-of-period amount plus end-of-period 

amount plus any interim periods, divided by the total 

number of periods). For "pooling-of-interest" mergers, 

the assets of the acquired institution(s) are included 

in average assets since the year-to-date income includes the results of all merged institutions. No adjustments are made for "purchase accounting" 

mergers. Growth rates represent the percentage 

change over a 12-month period in totals for institutions 

in the base period to totals for institutions in the current 

period. Tables Ill and IV do not provide growth rates 

for the "Asset Size Distribution" since many institutions 

migrate between size groups. 

Asset Migrations 

All data are collected and presented based on the location 

of each reporting institution's main office. When a main 

office is relocated to another state, adjustments to priorperiod data may be made to more accurately reflect 

geographic growth rates. In other situations, no adjustments are possible. For example, reported data may 

include assets and liabilities located outside of the reporting institution's home state. Also, institutions may 

change their charters, resulting in an inter-industry migration, e.g. savings institutions can convert to commercial banks. These situations can affect state and regional 

totals. 

RECENT ACCOUNTING CHANGES 

FASS Statement 115, "Accounting for Certain Investments in Debt and Equity Securities" requires that securities that are not held in trading accounts be measured at 

either amortized cost or fair (market) value, depending on 

their classification category ("available-for-sale" or "heldto-maturity"). For additional details, see "Notes to Users," 

First Quarter, 1994, Quarterly Banking Profile. 

On November 15, 1995 the FASB released a guide to the 

implementation of Statement 115 and provided a window 

(November 15, 1995 through December 31, 1995) during 

which banks could elect to sell or reclassify securities 

between categories without violating the provisions of the 

accounting rule. In most cases, Statement 115 requires an 

automatic marking-to-market of the entire held-to-maturity 

portfolio (previously valued at amortized cost) if any heldto-maturity security is sold or transferred. The one-time 

opportunity to avoid this requirement was designed to allow 

the sale or reclassification of securities from the held-toNotes to Users 
maturity category to available-for-sale or the trading portfolio without tainting the entire held-to-maturity category. 

The FASB announcement and guide also sought to provide further clarification of Statement 115, and correct 

misinterpretations of the original pronouncement. 

DEFINITIONS (in alphabetical order) 

All other assets - total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

estate investment in unconsolidated subsidiaries, customers' li�bility on acceptances outstanding, assets held in 

trading accounts, federal funds sold, securities purc�a�ed 

with agreements to resell, and other assets. Beginning 

3/31/94, FASB Interpretation 39 limited the netting of related trading assets and liabilities, which had the effect of 

increasing the amount of trading account assets reported. 

All other liabilities - bank's liability on acceptances, 

limited-life preferred stock, and other liabilities. Effective 

3/31/94, includes revaluation losses on assets held in 

trading accounts. 

BIF-insured deposits (estimated) - the amount of deposits in accounts of less than $100,000 insured by the BIF. 

For SAIF-member "Oakar'' institutions, it represents the 

adjusted attributable amount acquired from BIF members. 

Capital category distribution - each institution's capital 

category is calculated or estimated from its financial report 

and does not reflect supervisory upgrades or downgrades: 

Total Tier 1 

(Percent) Risk-Based Risk-Based Tier 1 Tangible 

Capital• Capital• Leverage Equity 

Well-capitalized <".10 and <".6 and <".5 

Adequately 

capitalized <".8 and �4 and <".4 

Undercapitalized <".6 and <".3 and <".3 

Significantly 

undercapitalized <6 or <3 or <3 and >2

Critically 

undercapitalized :S:2 

•As a percentage of risk-weighted assets. 

Construction and development loans - includes loans for 

all property types under construction, as well as loans for 

land acquisition and development. 

Core capital - common equity capital plus noncumulative 

perpetual preferred stock plus !'llinority inte

_

res! i� co

.

nsolidated subsidiaries, less goodwill and other ineligible intangible assets. The amount of eligible intangibles (including 

mortgage servicing rights) included in core capital is limited 

in accordance with supervisory capital regulations. 

Cost of funding earning assets - total interest expense 

paid on deposits and other borrowed money as a percentage of average earning assets. 

Derivative contracts, gross fair values (positive/negative) - are reported separately and repre�ent the amo�nt 

at which a contract could be exchanged 1n a transaction 

between willing parties, other than in a forced or liquidation 

sale. If a quoted market price is available for a contract, 

the fair value reported for that contract is calculated using 

this market price. If quoted market prices are not available, 

the reporting banks use the best estimate of fair value 

based on quoted market prices of similar contracts or o

_

n 

valuation techniques such as discounted cash flows. This 

information is reported only by banks with assets greater 

than $100 million. 

Notes to Users 22 

Direct and indirect investments in real estate - excludes loans secured by real estate and property acquired 

through foreclosure. 

Earning assets-all loans and other investments that earn 

interest or dividend income. 

Estimated insured deposits - estimated amount of insured deposits (account balances less than $100,000). 

The sum of all deposit balances in accounts of less than 

$100,000 plus the number of accounts with balances 

greater than $100,000 multiplied by $100,000. 

Failed/assisted institutions - An institution fails when 

regulators take control of the institution, placing t

_

he ass�ts

and liabilities into a bridge bank, conservatorsh1p, receivership, or another healthy institution. 

_

This action may

require the FDIC-or the RTC-to provide funds to cover 

losses. An institution is defined as "assisted" when the 

institution remains open and receives some insurance 

funds in order to continue operating. 

FHLB advances - borrowings from the Federal Home 

Loan Bank (FHLB) reported by institutions that file a Thrift 

Financial Report. Institutions that file a Call Report do not 

report borrowings ("advances") from the FHLB separately. 

Goodwill and other intangibles - intangible assets include mortgage servicing rights, purchased credit card 

relationships and other identifiable intangible assets. 

Loans secured by real estate - includes home equity 

loans, junior liens secured by 1-4 family residential properties and all other loans secured by real estate. 

Loans to individuals - includes outstanding credit card 

balances and other secured and unsecured consumer 

loans. 

Long-term assets (5+ years) - loans and debt securit�es 

with remaining maturities or repricing intervals of over five 

years. 

Mortgage-backed securities - certificates of parti�ipation in pools of residential mortgages and collaterahzed 

mortgage obligations issued or guaranteed by government-sponsored or private enterprises. Effective 3/31/�4, 

the full implementation of FASB 115 meant that a portion 

of banks' mortgage-backed securities portfolio is now reported based upon fair (market) values; previously, all 

mortgage-backed securities not held in trading accounts 

were reported at either amortized cost or lower of cost or 

market. 

Net charge-offs - total loans and leases charged off (removed from balance sheet because of uncollectibility), less 

amounts recovered on loans and leases previously 

charged off. 

Net interest margin - the difference between interest and 

dividends earned on interest-bearing assets and interest 

paid to depositors and other creditors, expressed as a 

percentage of average earning assets. No adjustments 

are made for interest income that is tax exempt. 

Net operating income - income excluding discretionary 

transactions such as gains (or losses) on the sale of 

investment securities and extraordinary items. Income 

taxes subtracted from operating income have been adjusted to exclude the portion applicable to securities gains 

(or losses). 

Noncurrent assets - the sum of loans, leases, debt 

securities and other assets that are 90 days or more past 

FDIC Quarterly Banking Profile 

Fourth Quarter 1995 
due, or in nonaccrual status. Noncurrent debt securities 

and other assets were not included prior to March 1991. 

Noncurrent loans & leases - the sum of loans and leases 

90 days or more past due, and loans and leases in nonaccrual status. 

Number of institutions reporting - the number of institutions that actually filed a financial report. 

Off-balance-sheet derivatives - represents the sum of 

the following: interest-rate contracts (defined as the notional value of interest-rate swap, futures, forward and option 

contracts), foreign-exchange-rate contracts, commodity 

contracts and equity contracts ( defined similarly to interestrate contracts). 

Futures and fo,ward contracts - a contract in which the 

buyer agrees to purchase and the seller agrees to sell, at a 

specified future date, a specific quantity o� underlyin� at a 

specified price or yield. These contracts exist for a variety of 

underlyings, including the traditional agricultural or physical 

commodities, as well as currencies and interest rates. Futures contracts are standardized and are traded on organized 

exchanges which set limits on counterparty credit exposure. 

Forward contracts do not have standardized terms and are 

traded over the counter. 

Option contracts - a contract in which the buyer �-

cquires the 

right to buy from or sell to another party some spec1f1ed amount 

of underlying at a stated price (strike price) durinQ a period or 

on a specified future date, in return for compensation (such as 

a fee or premium). The seller is obligated to purchase or sell 

the underlying at the discretion of the buyer of the contract. 

Swaps - an obligation between two parties to exchange a 

series of cash flows at periodic intervals (settlement dates), 

for a specified period. The cash flows of a swap are

. 

eit�er

fixed, or determined for each settlement date by multiplying 

the quantity of the underlying (notional principal) by specified 

reference rates or prices. Except for currency swaps, the 

notional principal is used to calculate each payment but is 

not exchanged. 

Other borrowed funds - federal funds purchased, securities sold with agreements to repurchase, demand notes 

issued to the U.S. Treasury, other borrowed money, mortgage indebtedness and obligations under capitalized 

leases. Effective 3/31/94, includes newly-reported item 

''Trading liabilities", less revaluation losses on assets held 

in trading accounts. 

Other real estate owned - primarily foreclosed property. 

Direct and indirect investments in real estate ventures are 

excluded. The amount is reflected net of valuation allowances. For institutions that file a Thrift Financial Report 

(TFR), the valuation allowance subtracted also includes 

allowances for other repossessed assets. Also, for TFR 

filers the components of other real estate owned are 

reported gross of valuation allowances. 

Percent of institutions with earnings gains - the percent 

of institutionF that increased their net inc?me ( or decrea

_

sed

their losses) compared to the same penod a year earlier. 

"Problem" institutions - Federal regulators assign a composite rating to each financial institution, based upon an 

evaluation of financial and operational criteria. The rating 

is based on a scale of 1 to 5 in ascending order of 

supervisory concern. "Problem" institutions are those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. 

Depending upon the degree of risk and supervisory 

FDIC Quarterly Banking Profile 

Fourth Quarter 1995 23 

concern, they are rated either a "4" or "5". For all 

BIF-member institutions, and for all SAIF-member 

institutions for which the FDIC is the primary federal 

regulator, FDIC composite ratings are used. For all 

SAIF-member institutions whose primary federal 

regulator is the OTS, the OTS composite rating is 

used. 

Restructured loans and leases - loan and lease financing receivables with terms restructured from the original 

contract. Excludes restructured loans and leases that are 

not in compliance with the modified terms. 

Return on assets - net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total assets. The basic yardstick of bank profitability. 

Return on equity - net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total equity capital. 

Risk-weighted assets - assets adjusted for risk-based 

capital definitions which include on-balance-sheet as well 

as off-balance-sheet items multiplied by risk-weights that 

range from zero to 100 percent. A conversion factor is used 

to assign a balance sheet equivalent amount for selected 

off-balance-sheet accounts. 

SAIF-insured deposits (estimated) - the amount of deposits in accounts of less than $100,000 insured by the 

SAIF. For BIF-member "Oakar" institutions, it represents 

the adjusted attributable amount acquired from SAIF members. 

Securities - excludes securities held in trading accounts. 

Effective 3/31 /94, the full implementation of FASB 115 

meant that a portion of banks' securities portfolios is now 

reported based upon fair (market) values; previously, all 

securities not held in trading accounts were reported at 

either amortized cost or lower of cost or market. 

Securities gains (losses) - Realized gains (losses) on 

held-to-maturity and available-for-sale securities, before 

adjustments for income taxes. Thrift Financial Reporters 

(TFR) also include gains (losses) on the sales of assets 

held for sale. In all publications prior to September 1995, 

gains (losses) on sales of available-for-sale securities and 

assets held for sale were excluded for savings institutions 

that file a TFR. 

Troubled real estate asset rate - noncurrent real estate 

loans plus other real estate owned as a percent of total real 

estate loans and other real estate owned. 

Unused loan commitments - includes credit card lines, 

home equity lines, commitments to make loans for construction, loans secured by commercial real estate, and 

unused commitments to originate or purchase loans. 

Volatile liabilities - the sum of large-denomination time 

deposits, foreign-office deposits, federal funds purchased, 

securities sold under agreements to repurchase, and other 

borrowings. Beginning 3/31/94, new reporting detail permits the exclusion of other borrowed money with original 

maturity of more than one year; previously, all other borrowed money was included. Also beginning 3/31/94, the 

newly-reported item ''Trading liabilities", less revaluation 

losses on assets held in trading accounts, is included. 

Yield on earning assets - total interest, dividend and fee 

income earned on loans and investments as a percentage 

of average earning assets. 

Notes to Users 
FDIC 

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Washington, DC 20429-9990 

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