Donna Tanoue, Chairman 

First Quarter 2001 

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 

COMMERCIAL BANK PERFORMANCE — FIRST QUARTER, 2001 

n Gains On Securities Sales Lift Industry Profits To New Record, 

Despite Decline In Operating Earnings 

n Troubled Commercial & Industrial Loans Continue To Grow 

n Narrower Net Interest Margins Hurt Small-Bank Profits 

n Loans Register Smallest Quarterly Increase In Four Years 

Insured commercial banks earned a record $19.9 

billion in the first quarter, surpassing the previous 

record of $19.5 billion, set a year earlier. The higher profits were made possible by a $1.9-billion 

improvement in banks’ proceeds from securities 

sales. Sales of securities in the quarter yielded 

gains of $1.2 billion, whereas a year ago, when 

interest rates were higher, securities sales produced net losses totaling $730 million. The average return on assets for the quarter was 1.27 

percent, down from 1.35 percent in the first quarter 

of 2000. A majority of commercial banks—53.6 

percent—reported lower ROAs in the first quarter, 

compared to a year ago. More than half (55.8 

percent) of all commercial banks reported an ROA 

of 1 percent or higher for the first quarter. 

Excluding nonrecurring items such as the gains on 

securities sales, banks’ net operating income was 

$586 million (2.9 percent) lower than a year ago. 

QUARTERLY NET INCOME, 

1997–2001 

$ Billions 

Securities and Other Gains/Losses, Net 

Net Operating Income 19.4 19.5 

18.0 17.7 16.9 

19.3 19.9 

17.7 

14.6 14.5 14.6 14.7 15.3 15.9 16.1 15.0 14.8 

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

1997 1998 1999 2000 2001 

QUARTERLY NET INTEREST MARGINS, 

1997–2001 

Net Interest Margin (%) 

5.0 

4.5 

Assets < $1 Billion 4.31 

4.0 

Assets > $1 Billion 3.73 

3.5 

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

1997 1998 1999 2000 2001 

Narrower net interest margins have meant slower 

growth in net interest income, while a less-robust 

economy and lackluster stock market have contributed to a slowdown in growth in noninterest revenues. Provisions for loan losses continue to rise, 

particularly at large banks, in response to increasing levels of troubled loans to commercial borrowers. Net interest income was up by only 3.5 

percent ($1.7 billion), even though interest-earning 

assets were 7.9 percent higher. Noninterest 

income was 4.5 percent ($1.7 billion) above the 

level of a year ago, down from the 6.2-percent 

growth rate registered in 2000. Banks set aside 

$7.9 billion in loan-loss provisions during the quarter, a $2.1-billion (36.4-percent) increase over the 

first quarter of 2000. Loss provisions absorbed 8.6 

percent of commercial banks’ net operating revenue (net interest income plus total noninterest 

income) in the first quarter, up from 6.6 percent a 

year earlier. 

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

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

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

the FDIC’s Institution Directory (I.D.) System on this Web site. 
NONINTEREST INCOME AS A PERCENTAGE OF larger banks. Only one out of every three banks (33.6 

NET OPERATING REVENUE*, 1993–2001 

Percent 

15 

25 

35 

45 Assets > $1 Billion 

Assets < $1 Billion 

1993 1994 1995 1996 1997 1998 1999 2000 2001 

* Net operating revenue equals net interest income plus noninterest income. 

In an environment of falling short-term interest rates, 

the industry’s net interest margin declined for the sixth 

consecutive quarter, to 3.83 percent. This is its lowest 

level since the first quarter of 1987. The average cost 

of funding interest-earning assets declined by 28 basis 

points, but the average yield on interest-earning assets 

fell by 35 basis points. Margin erosion was greatest at 

small banks. While the industry’s margin declined by 

7 basis points, the average margin for banks with less 

than $100 million fell by 18 basis points, and the margin for banks with assets between $100 million and $1 

billion declined by 13 basis points. 

Loan losses continued to rise in the first quarter. 

Banks charged-off $7.0 billion in bad loans during the 

quarter, an increase of $1.9 billion (38.1 percent) from 

the same quarter in 2000. Commercial and industrial 

loans accounted for more than half (54.8 percent) of 

the increase in net charge-offs. The annualized net 

charge-off rate on banks’ commercial and industrial 

loans rose to 0.90 percent, from 0.52 percent a year 

earlier. The deterioration was concentrated among 

CREDIT QUALITY OF COMMERCIAL BANKS’ 

C&I LOANS, 1996–2001 $ Billions 

25 

20 

15 

10 

5 

0 

1996 1997 1998 1999 2000 2001 

Quarterly Net Charge-Offs 

Noncurrent Loans 

7.4 

21.3 

2.3 

19.0 

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

percent) reported a higher net charge-off rate on their 

C&I loans in the first quarter, but these banks held 67.4 

percent of the industry’s C&I loans. 

Even with the increase in charge-off activity, noncurrent loans—loans 90 days or more past due or in 

nonaccrual status—continued to increase as well. 

Total noncurrent loans increased by $3.2 billion (7.4 

percent) during the quarter. Noncurrent commercial 

and industrial loans increased by $1.5 billion (8.7 percent), while noncurrent 1-4 family mortgage loans rose 

by $389 million (5.4 percent), and noncurrent real 

estate construction and development loans were up by 

$261 million (21.2 percent). Among the other loan 

categories, noncurrent loans were up by $997 million. 

Noncurrent levels were higher in home equity loans, 

leases, and “all other” loans, which include loans to 

finance securities purchases. At the end of the quarter, 1.2 percent of all loans held by commercial banks 

were noncurrent. This is the highest level since the 

third quarter of 1995. The noncurrent rate for commercial and industrial loans rose to 1.82 percent at the 

end of the quarter, a seven-year high. 

Banks’ reserves for losses increased by only $575 million (0.9 percent) during the quarter. This was enough 

growth to keep pace with sluggish loan growth, but it 

fell short of the increase in noncurrent loans. The 

industry’s reserves represented 1.69 percent of total 

loans at the end of the quarter, up slightly from 1.68 

percent at the beginning of the quarter. However, the 

industry’s “coverage ratio” fell from $1.49 in reserves 

for every $1.00 of noncurrent loans to $1.40 during the 

quarter. It is now at its lowest level since the first quarter of 1994. A year ago, banks held $1.73 in reserves 

for every $1.00 in noncurrent loans. 

Equity capital registered strong growth during the 

quarter, increasing by $16.8 billion (3.2 percent). An 

important part of the increase—$4.5 billion—came 

from the newly-reported item “Accumulated other comprehensive income,” which includes both unrealized 

gains on available-for-sale securities and net gains 

and losses on cash flow hedges.1 The industry’s ratio 

of equity capital to assets rose from 8.49 percent to 

8.66 percent during the quarter, but the core capital 

(leverage) ratio used by regulators dipped slightly, to 

7.68 percent from 7.70 percent, because changes in 

other comprehensive income are not reflected in regulatory capital. 

1Reporting of gains/losses on cash flow hedges is in accordance 

with FASB Statement No. 133. 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 First Quarter 2001 
Asset growth slowed for the second consecutive quarter, but remained strong by historical standards. For 

the twelve months ending March 31, total assets of 

commercial banks grew by 8.0 percent. Loan growth 

experienced a somewhat greater slowdown, as total 

loans registered their smallest quarterly increase (up 

$11.6 billion) in four years, and commercial and industrial loans declined for the first time since the third 

quarter of 1993. Home mortgage loans increased by 

$9.3 billion (1.0 percent) during the quarter. Overnight 

loans (federal funds) rose strongly for the second consecutive quarter, increasing by $47.3 billion (16.9 percent). 

Deposits at commercial banks increased by only $6.8 

billion during the quarter, the smallest quarterly rise in 

two years. The composition of banks’ deposits underwent greater change, however. Deposits in foreign 

offices declined by $35.6 billion, while domestic office 

deposits grew by $42.4 billion. Domestic demand 

deposits registered a seasonal decline of $41.6 billion, 

while domestic savings deposits increased by $86.0 

billion. This was the second consecutive quarter that 

savings deposits grew strongly. In the fourth quarter of 

last year, they were up by $69.6 billion. Brokered 

deposits continued to grow, with a significant boost 

from the sweeping of brokerage accounts into insured 

deposits at banks affiliated with brokerage firms. 

These sweep accounts increased by roughly $24 billion during the quarter, with $20 billion of the increase 

fully insured. 

The number of insured commercial banks reporting 

financial results fell by 78 banks during the first quarter, from 8,315 to 8,237. There were 34 new charters, 

while 104 banks were absorbed by mergers, and one 

insured commercial bank failed. The number of commercial banks on the FDIC’s “Problem List” increased 

from 76 to 78 during the quarter. Total assets of “problem” banks remained unchanged at $17 billion. 

NUMBER OF SUBCHAPTER S CORPORATIONS, 

1997–2001 

Number of Institutions 

569 575 587 601 

1,031 1,035 1,037 1,041 

1,272 1,275 1,286 1,285 

1,445 1,4411,441 1,439 

1,621 

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

1997 1998 1999 2000 2001 

FDIC Quarterly Banking Profile 

First Quarter 2001 3 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

2001* 2000* 2000 1999 1998 1997 1996 

Return on assets (%)............................................. 1.27 1.35 1.19 1.31 1.19 1.23 1.19 

Return on equity (%)............................................. 14.78 16.05 14.04 15.31 13.93 14.68 14.45 

Core capital (leverage) ratio (%).............................. 7.68 7.79 7.70 7.79 7.54 7.56 7.64 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.79 0.65 0.74 0.63 0.65 0.66 0.75 

Net charge-offs to loans (%).................................... 0.73 0.57 0.67 0.61 0.67 0.64 0.58 

Asset growth rate (%)............................................. 7.96 8.01 8.78 5.38 8.53 9.54 6.16 

Net interest margin (%).......................................... 3.83 4.00 3.95 4.07 4.07 4.21 4.27 

Net operating income growth (%).............................. -2.94 13.38 1.84 20.41 2.24 12.46 6.43 

Number of institutions reporting.............................. 8,237 8,516 8,314 8,581 8,774 9,142 9,527 

Percentage of unprofitable institutions (%).................. 6.86 6.49 7.23 7.48 6.11 4.85 4.28 

Number of problem institutions................................. 78 72 76 66 69 71 82 

Assets of problem institutions (in billions).................. $17 $5 $17 $4 $5 $5 $5 

Number of failed/assisted institutions........................ 1 1 6 7 3 1 5 

* Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 31. 

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

(dollar figures in millions) 

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

Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

2001 2000 2000 00:1-01:1 

8,237 8,314 8,516 -3.3 

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

CONDITION DATA

1,681,725 1,669,625 1,648,826 2.0 

 Total assets..................................................................... $6,310,814 $6,239,080 $5,845,520 8.0

 Loans secured by real estate............................................. 1,699,384 1,670,663 1,561,389 8.8

 Commercial & industrial loans.......................................... 1,045,503 1,050,638 1,000,927 4.5

 Loans to individuals......................................................... 597,505 609,724 556,694 7.3

 Farm loans.................................................................. 46,238 48,077 43,370 6.6

 Other loans & leases...................................................... 442,289 440,334 408,810 8.2

 Less: Unearned income................................................... 2,774 2,915 3,252 -14.7

 Total loans & leases......................................................... 3,828,145 3,816,522 3,567,939 7.3

 Less: Reserve for losses................................................... 64,665 64,090 59,861 8.0

 Net loans and leases......................................................... 3,763,480 3,752,432 3,508,078 7.3

 Securities........................................................................ 1,047,974 1,077,765 1,056,607 -0.8

 Other real estate owned................................................... 3,053 2,904 2,765 10.4

 Goodwill and other intangibles.......................................... 103,545 102,705 101,313 2.2

 All other assets............................................................... 1,392,762 1,303,274 1,176,759 18.4 

Total liabilities and capital................................................... 6,310,814 6,239,080 5,845,520 8.0

 Noninterest-bearing deposits............................................. 721,932 755,867 708,693 1.9

 Interest-bearing deposits.................................................. 3,461,791 3,421,076 3,168,636 9.3

 Other borrowed funds...................................................... 1,143,225 1,107,309 1,088,771 5.0

 Subordinated debt............................................................ 90,522 87,043 78,934 14.7

 All other liabilities............................................................ 347,103 338,306 308,940 12.4

 Equity capital.................................................................. 546,240 529,478 491,546 11.1 

Loans and leases 30-89 days past due................................. 47,254 47,925 39,805 18.7 

Noncurrent loans and leases................................................ 46,090 42,922 34,603 33.2 

Restructured loans and leases............................................. 1,218 1,312 1,131 7.7 

Direct and indirect investments in real estate........................... 274 294 309 -11.3 

1-4 Family residential mortgages.......................................... 926,030 916,687 862,503 7.4 

Mortgage-backed securities................................................ 493,838 470,477 461,316 7.0 

Earning assets.................................................................. 5,442,740 5,376,078 5,045,706 7.9 

Long-term assets (5+ years)................................................ 1,159,384 1,186,146 1,220,915 -5.0 

Volatile liabilities............................................................... 2,151,197 2,182,263 2,043,489 5.3 

Foreign office deposits...................................................... 671,096 706,666 639,489 4.9 

FHLB Advances (Source: FHFB, Call Reports)........................ 184,528 175,337 161,052 14.6 

Unused loan commitments................................................... 4,550,840 4,464,705 4,066,086 11.9 

Derivatives........................................................................... 44,331,767 40,760,447 37,397,352 18.5 

INCOME DATA 

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

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

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

Provision for loan and lease losses........................ 

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

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

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

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

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

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

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

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

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

Preliminary 

Full Year Full Year 1st Quarter 1st Quarter %Change 

2000 1999 %Change 2001 2000 00:1-01:1 

$428,115 $367,358 16.5 $109,606 $100,384 9.2 

224,290 175,151 28.1 57,793 50,308 14.9

203,825 192,207 6.0 51,813 50,076 3.5 

29,955 21,815 37.3 7,938 5,819 36.4 

153,435 144,403 6.3 40,150 38,438 4.5 

215,963 204,216 5.8 54,991 51,993 5.8 

-2,285 180 N/M 1,171 -730 N/M 

37,983 39,376 -3.5 9,990 10,488 -4.8 

-32 169 N/M -335 17 N/M

71,042 71,551 -0.7 19,878 19,501 1.9 

24,761 20,361 21.6 6,968 5,047 38.1 

53,816 51,937 3.6 13,450 11,535 16.6

72,631 71,317 1.8 19,379 19,965 -2.9 

N/M - Not meaningful 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 First Quarter 2001 
TABLE III-A. First Quarter 2001, FDIC-Insured Commercial Banks 

FIRST QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

8,237 4,759 3,088 311 79 656 1,420 1,767 2,133 1,365 896 

Total assets (in billions).................................... $6,310.8 $229.5 $781.1 $884.1 $4,416.2 $2,237.5 $1,598.7 $1,126.4 $414.3 $262.5 $671.4 

Total deposits (in billions)................................. 4,183.7 193.9 639.0 612.4 2,738.3 1,392.4 1,079.9 745.2 288.0 214.4 463.8 

Net income (in millions).................................... 19,878 566 2,434 3,040 13,839 6,585 4,687 3,075 1,311 761 3,459 

% of unprofitable institutions.............................. 6.9 10.3 2.2 2.6 1.3 9.6 10.2 6.0 4.1 5.1 10.4 

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

Performance ratios (annualized, %) 

52.9 48.2 59.0 64.0 60.8 59.3 51.4 54.0 48.6 51.9 60.5 

Yield on earning assets.................................... 8.11 8.34 8.39 8.50 7.96 7.88 7.96 8.02 8.50 8.20 9.03 

Cost of funding earning assets........................... 4.27 4.06 4.07 4.16 4.35 4.47 4.13 4.41 4.20 3.84 3.98 

Net interest margin.......................................... 3.83 4.29 4.32 4.34 3.61 3.41 3.83 3.61 4.30 4.37 5.04 

Noninterest income to earning assets.................. 2.97 1.10 1.74 2.55 3.40 3.86 2.41 1.87 2.77 1.55 4.12 

Noninterest expense to earning assets.................. 4.07 3.74 3.84 4.02 4.14 4.55 3.71 3.24 4.36 3.87 4.72 

Loan and lease loss provision to assets............... 0.51 0.22 0.27 0.55 0.55 0.48 0.41 0.47 0.68 0.27 0.88 

Net operating income to assets........................... 1.24 0.97 1.23 1.33 1.23 1.17 1.15 1.04 1.20 1.13 2.05 

Return on assets............................................. 1.27 1.00 1.26 1.38 1.26 1.19 1.17 1.10 1.26 1.17 2.09 

Return on equity............................................. 14.78 8.94 12.96 15.10 15.51 14.88 13.26 13.88 12.99 12.34 21.00 

Net charge-offs to loans and leases..................... 0.73 0.20 0.28 0.73 0.84 0.86 0.57 0.58 0.86 0.33 1.11 

Loan and lease loss provision to net charge-offs...... 113.92 178.94 148.58 117.03 110.25 108.72 108.45 119.04 116.44 139.01 123.00 

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

Condition Ratios (%) 

57.93 69.06 62.45 56.28 57.04 60.68 57.49 57.71 59.70 63.09 49.63 

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

Loss allowance to: 

86.24 91.97 91.61 89.66 84.31 83.13 86.43 89.66 89.74 89.80 86.92 

Loans and leases.......................................... 1.69 1.40 1.42 1.84 1.72 1.85 1.52 1.53 1.62 1.41 2.13 

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

Noncurrent assets plus 

140.30 139.00 164.53 178.75 130.75 129.65 128.79 139.55 170.55 141.46 190.42 

other real estate owned to assets..................... 0.79 0.73 0.65 0.72 0.83 0.77 0.85 0.80 0.70 0.68 0.78 

Equity capital ratio............................................. 8.66 11.19 9.78 9.29 8.20 8.02 8.98 7.98 9.88 9.60 10.02 

Core capital (leverage) ratio.............................. 7.68 10.96 9.37 8.33 7.07 7.22 7.66 7.57 8.31 8.64 8.67 

Tier 1 risk-based capital ratio.............................. 9.53 16.35 13.14 11.05 8.43 9.46 9.10 8.85 10.76 12.62 10.30 

Total risk-based capital ratio.............................. 12.28 17.44 14.29 12.86 11.65 12.37 11.89 11.83 12.95 14.04 12.79 

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

Structural Changes (YTD) 

89.96 71.14 78.05 90.98 93.84 80.16 96.67 101.21 96.07 70.65 90.77 

New Charters................................................ 34 33 1 0 0 5 7 7 6 1 8 

Banks absorbed by mergers........................... 104 41 49 11 3 11 18 33 16 14 12 

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

PRIOR FIRST QUARTERS

 (The way it was...) 

1 1 0 0 0 1 0 0 0 0 0 

Number of institutions................................2000 8,516 5,091 3,047 299 79 674 1,429 1,848 2,195 1,442 928

 ...............................................1998 9,023 5,742 2,918 298 65 708 1,480 1,970 2,309 1,579 977

 ...............................................1996 9,838 6,582 2,835 349 72 785 1,640 2,158 2,471 1,743 1,041 

Total assets (in billions).............................2000 $5,845.5 $238.6 $761.8 $857.0 $3,988.2 $2,010.8 $1,556.1 $997.8 $396.9 $315.2 $568.8

 ................................................1998 5,109.1 263.8 729.0 899.7 3,216.6 1,894.1 1,017.0 813.7 336.7 363.3 684.2

 ................................................1996 4,308.4 295.7 692.1 1,081.2 2,239.4 1,620.2 750.5 689.4 284.5 327.5 636.2 

Return on assets (%)................................2000 1.35 1.14 1.33 1.55 1.32 1.40 1.36 1.21 1.42 1.12 1.44

 ................................................1998 1.26 1.19 1.37 1.72 1.11 1.19 1.16 1.32 1.48 1.21 1.41

 ................................................1996 

Net charge-offs to loans & leases (%) 

1.12 1.21 1.30 1.28 0.97 0.90 1.18 1.17 1.37 1.28 1.35 

 ................................................2000 0.57 0.17 0.31 0.68 0.62 0.76 0.39 0.34 0.83 0.34 0.86

 ................................................1998 0.62 0.17 0.28 1.04 0.61 0.89 0.37 0.37 0.72 0.33 0.77

 ................................................1996 

Noncurrent assets plus 

0.55 0.17 0.34 0.86 0.49 0.68 0.42 0.39 0.64 0.24 0.68 

OREO to assets (%)..............................2000 0.65 0.69 0.59 0.60 0.67 0.73 0.61 0.57 0.59 0.59 0.66

 ................................................1998 0.67 0.75 0.66 0.76 0.65 0.77 0.58 0.60 0.65 0.55 0.71

 ................................................1996 0.86 0.85 0.82 0.88 0.87 1.02 0.67 0.67 0.70 0.64 1.07 

Equity capital ratio (%)..............................2000 8.41 10.79 9.30 8.99 7.97 7.95 8.55 7.93 8.79 8.63 10.12

 ................................................1998 8.41 10.88 9.61 9.58 7.61 7.44 8.71 8.60 9.12 8.71 9.92

 ................................................1996 8.20 10.42 9.41 8.85 7.22 7.65 8.38 8.50 8.86 8.60 8.57 

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 

uarterly Banking Profile 

uarter 2001 5 FDIC-Insured Commercial Banks 
TABLE IV-A. Full Year 2000, FDIC-Insured Commercial Banks 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

8,314 4,839 3,080 313 82 665 1,426 1,792 2,144 1,383 904 

Total assets (in billions)....................................... $6,239.1 $231.1 $773.5 $884.1 $4,350.3 $2,180.9 $1,610.9 $1,072.4 $419.0 $302.3 $653.6 

Total deposits (in billions).................................... 4,176.9 194.8 632.9 621.6 2,727.6 1,371.4 1,096.1 730.2 290.7 241.3 447.2 

Net income (in millions)....................................... 71,042 2,203 9,391 10,852 48,596 27,126 16,630 10,649 5,643 2,832 8,161 

% of unprofitable institutions................................. 7.2 10.8 1.8 4.5 7.3 10.1 12.1 5.8 3.7 6.1 10.5 

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

Performance Ratios (%) 

67.5 65.2 71.9 65.8 48.8 68.7 68.0 64.5 65.7 69.3 73.7 

Yield on earning assets....................................... 8.29 8.41 8.52 8.48 8.20 8.08 8.17 8.22 8.70 8.31 9.16 

Cost of funding earning assets.............................. 4.34 3.87 4.00 4.20 4.47 4.52 4.25 4.56 4.24 3.84 3.94 

Net interest margin............................................. 3.95 4.54 4.52 4.28 3.73 3.56 3.92 3.66 4.46 4.47 5.22 

Noninterest income to earning assets..................... 2.97 1.22 1.75 2.56 3.39 3.99 2.50 1.89 2.79 1.43 3.64 

Noninterest expense to earning assets.................. 4.18 3.89 3.91 3.97 4.30 4.62 3.92 3.35 4.17 3.73 5.15 

Credit loss provision to assets.............................. 0.50 0.35 0.33 0.56 0.53 0.44 0.45 0.44 0.63 0.49 0.90 

Net operating income to assets.............................. 1.22 1.01 1.29 1.31 1.19 1.28 1.12 1.07 1.44 1.05 1.44 

Return on assets................................................ 1.19 1.00 1.28 1.28 1.16 1.30 1.05 1.03 1.42 0.97 1.38 

Return on equity................................................ 14.04 9.02 13.55 14.47 14.41 16.35 12.33 12.88 15.41 10.99 13.60 

Net charge-offs to loans and leases........................ 0.67 0.41 0.33 0.70 0.75 0.79 0.61 0.40 0.83 0.43 1.01 

Credit loss provision to net charge-offs.................. 120.97 142.85 152.85 126.51 116.57 104.91 111.56 163.37 112.45 189.52 133.32 

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

Condition Ratios (%) 

58.42 67.01 61.48 56.10 58.00 59.17 58.74 58.78 55.62 61.44 55.84 

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

Loss allowance to:

86.17 91.78 91.59 89.47 84.23 83.15 86.34 89.49 89.82 89.04 86.69 

 Loans and leases............................................. 1.68 1.39 1.41 1.76 1.73 1.84 1.51 1.48 1.59 1.54 2.13

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

Noncurrent assets plus

149.32 154.09 176.70 190.58 139.13 139.49 130.72 146.06 195.13 171.87 208.53 

 other real estate owned to assets........................ 0.74 0.67 0.61 0.64 0.79 0.73 0.82 0.74 0.61 0.62 0.73 

Equity capital ratio............................................. 8.49 11.07 9.59 8.98 8.05 8.00 8.61 7.91 9.49 8.93 9.89 

Core capital (leverage) ratio................................. 7.70 11.00 9.28 8.35 7.11 7.48 7.49 7.57 8.25 8.21 8.65 

Tier 1 risk-based capital ratio.............................. 9.41 16.33 12.91 11.00 8.30 9.53 8.89 8.81 10.45 11.42 10.00 

Total risk-based capital ratio................................. 12.13 17.43 14.07 12.80 11.49 12.47 11.64 11.65 12.60 13.27 12.39 

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

Structural Changes 

89.84 71.84 78.64 88.63 93.99 81.51 95.07 98.24 96.83 74.41 92.58 

New charters................................................... 192 189 2 1 0 18 67 35 23 13 36 

Banks absorbed by mergers.............................. 453 193 207 47 6 35 108 104 99 59 48 

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

PRIOR FULL YEARS 

(The way it was...) 

6 5 1 0 0 0 1 1 2 0 2 

Number of institutions................................1999 8,581 5,156 3,031 318 76 678 1,450 1,859 2,205 1,456 933

 ................................................1997 9,142 5,853 2,922 301 66 714 1,525 1,998 2,329 1,600 976

 ................................................1995 9,940 6,658 2,861 346 75 794 1,659 2,178 2,487 1,773 1,049 

Total assets (in billions).............................1999 $5,735.2 $242.4 $755.1 $915.2 $3,822.5 $2,009.6 $1,531.6 $952.5 $389.6 $314.3 $537.7

 ................................................1997 5,014.9 267.8 727.7 902.7 3,116.7 1,893.9 946.9 804.8 335.0 355.9 678.4

 ................................................1995 4,312.7 297.9 696.7 1,052.8 2,265.2 1,625.6 737.7 695.2 287.5 326.4 640.3 

Return on assets (%)................................1999 1.31 1.01 1.34 1.48 1.28 1.24 1.29 1.28 1.48 1.15 1.63

 ................................................1997 1.23 1.18 1.33 1.36 1.18 1.14 1.23 1.29 1.43 1.22 1.35

 ................................................1995 

Net charge-offs to loans & leases (%)

1.17 1.18 1.24 1.27 1.10 1.02 1.19 1.15 1.50 1.20 1.41 

 ................................................1999 0.61 0.37 0.36 0.68 0.66 0.79 0.45 0.37 0.76 0.47 0.95

 ................................................1997 0.64 0.28 0.36 1.08 0.58 0.73 0.46 0.50 0.82 0.38 0.83

 ................................................1995 

Noncurrent assets plus 

0.49 0.24 0.37 0.69 0.46 0.64 0.32 0.31 0.54 0.24 0.62 

OREO to assets (%)...............................1999 0.63 0.66 0.58 0.58 0.66 0.72 0.58 0.55 0.60 0.61 0.67

 ................................................1997 0.66 0.71 0.65 0.77 0.63 0.73 0.59 0.58 0.69 0.52 0.72

 ................................................1995 0.85 0.78 0.80 0.82 0.89 1.03 0.64 0.63 0.64 0.62 1.09 

Equity capital ratio (%)..............................1999 8.37 10.68 9.24 9.09 7.87 7.71 8.60 8.02 8.84 8.53 10.29

 ................................................1997 8.33 10.81 9.62 9.16 7.58 7.33 8.87 8.35 9.06 8.65 9.82

 ................................................1995 8.11 10.42 9.39 8.57 7.19 7.61 8.23 8.30 8.70 8.52 8.53 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 6 First Quarter 2001 
TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

March 31, 2001 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate........................... 1.23 1.53 1.19 1.04 1.29 1.15 1.31 1.35 1.10 1.29 1.03 

Construction and development........................... 1.24 1.42 1.46 1.24 1.14 1.16 1.08 1.43 1.26 1.46 1.33 

Commercial real estate.................................... 0.87 1.23 0.92 0.88 0.80 0.89 0.76 1.02 0.98 1.07 0.71 

Multifamily residential real estate........................ 0.64 0.73 0.72 0.86 0.54 0.33 0.63 0.92 0.83 0.95 0.61 

Home equity loans.......................................... 0.85 1.00 0.85 0.95 0.83 0.66 0.73 1.16 0.76 0.70 0.88 

Other 1-4 Family residential.............................. 1.51 1.77 1.39 1.11 1.62 1.28 1.79 1.61 1.07 1.40 1.23 

Commercial and industrial loans........................... 0.88 2.05 1.57 1.38 0.68 0.61 0.63 1.16 1.57 1.42 1.23 

Loans to individuals............................................. 2.15 2.38 2.08 2.22 2.14 2.47 1.94 1.93 2.24 1.80 1.91 

Credit card loans............................................. 2.54 2.16 4.21 2.65 2.45 2.85 2.62 1.56 2.54 1.44 2.05 

Other loans to individuals................................. 1.93 2.39 1.79 1.95 1.92 2.13 1.74 1.97 2.00 1.81 1.68 

All other loans and leases (including farm)............... 0.87 1.87 1.40 1.20 0.77 0.67 0.43 1.29 1.95 1.63 0.96 

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

Percent of Loans Noncurrent* 

0.71 0.48 0.56 0.90 0.69 0.39 0.33 1.04 3.17 0.05 0.73 

All real estate loans............................................. 0.87 0.87 0.71 0.78 0.95 0.93 0.91 0.98 0.62 0.80 0.67 

Construction and development........................... 0.86 0.77 0.83 0.89 0.86 1.21 0.78 0.92 1.01 0.73 0.73 

Commercial real estate.................................... 0.79 0.98 0.73 0.80 0.80 0.79 0.75 0.96 0.64 0.85 0.68 

Multifamily residential real estate........................ 0.39 0.43 0.46 0.54 0.32 0.31 0.39 0.49 0.31 0.33 0.45 

Home equity loans.......................................... 0.44 0.31 0.38 0.41 0.46 0.31 0.24 0.86 0.33 0.40 0.32 

Other 1-4 Family residential.............................. 0.95 0.78 0.65 0.78 1.08 0.86 1.15 1.05 0.50 0.76 0.64 

Commercial and industrial loans........................... 1.82 1.51 1.33 1.58 1.92 1.90 2.06 1.60 1.20 1.62 1.82 

Loans to individuals............................................. 1.41 0.88 0.88 1.24 1.54 2.15 0.85 0.65 1.31 0.61 1.36 

Credit card loans............................................. 2.18 2.00 3.32 2.22 2.12 2.59 1.79 0.95 1.97 1.01 1.88 

Other loans to individuals................................. 0.97 0.85 0.55 0.63 1.15 1.77 0.57 0.62 0.79 0.60 0.47 

All other loans and leases (including farm)............... 0.80 1.04 1.02 0.70 0.78 0.68 0.75 0.76 1.19 1.17 1.17 

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

Percent of Loans Charged-off (net, annual) 

0.47 0.30 0.32 0.28 0.51 0.40 0.69 0.69 0.26 0.19 0.17 

All real estate loans............................................. 0.12 0.04 0.04 0.10 0.15 0.09 0.11 0.17 0.19 0.04 0.06 

Construction and development........................... 0.11 0.08 0.02 0.12 0.14 0.04 0.15 0.19 0.12 0.03 -0.02 

Commercial real estate.................................... 0.10 0.04 0.05 0.06 0.16 0.03 0.09 0.15 0.23 0.03 0.10 

Multifamily residential real estate........................ 0.03 0.11 0.02 -0.02 0.05 0.00 0.07 0.05 0.08 0.02 -0.03 

Home equity loans.......................................... 0.25 0.04 0.07 0.51 0.23 0.25 0.26 0.25 0.26 0.24 0.23 

Other 1-4 Family residential.............................. 0.10 0.04 0.05 0.09 0.13 0.08 0.10 0.18 0.16 0.04 0.03 

Commercial and industrial loans........................... 0.90 0.35 0.43 0.67 1.00 0.71 0.97 0.90 1.07 0.66 1.30 

Loans to individuals............................................. 2.43 0.72 1.38 2.78 2.57 2.94 1.90 1.39 2.70 0.86 3.24 

Credit card loans............................................. 4.44 2.02 5.92 5.04 4.25 4.70 4.15 4.34 4.49 1.93 4.15 

Other loans to individuals................................. 1.17 0.67 0.68 1.22 1.30 1.27 1.18 1.05 1.00 0.82 1.47 

All other loans and leases (including farm)............... 0.38 0.19 0.24 0.35 0.40 0.19 0.20 0.63 0.37 0.29 1.36 

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

Loans Outstanding (in billions) 

0.32 2.48 1.23 0.23 0.28 0.73 0.18 0.08 0.23 0.48 0.02 

All real estate loans............................................. $1,699.4 $81.0 $328.4 $308.7 $981.3 $362.4 $549.1 $364.3 $131.1 $84.1 $208.4 

Construction and development........................... 173.7 7.3 37.6 39.9 88.9 16.9 63.7 36.8 14.5 12.8 29.1 

Commercial real estate.................................... 469.3 22.7 122.2 104.9 219.5 79.2 143.7 103.6 36.7 30.8 75.3 

Multifamily residential real estate........................ 61.0 1.8 10.9 12.5 35.8 15.3 16.8 13.5 4.0 2.4 8.9 

Home equity loans.......................................... 130.1 2.0 13.7 18.2 96.2 26.8 44.1 36.8 7.7 1.4 13.4 

Other 1-4 Family residential.............................. 795.9 36.9 130.2 128.8 500.0 191.6 271.0 165.0 57.6 33.1 77.7 

Commercial and industrial loans........................... 1,045.5 24.5 92.3 123.5 805.2 348.8 273.6 220.4 64.0 37.1 101.7 

Loans to individuals............................................. 597.5 18.4 59.8 101.8 417.6 223.8 130.9 87.6 49.0 23.1 83.3 

Credit card loans............................................. 216.5 0.5 7.2 39.1 169.8 104.0 29.9 8.0 21.4 0.7 52.5 

Other loans to individuals................................. 381.0 17.9 52.6 62.7 247.8 119.8 101.0 79.5 27.5 22.4 30.8 

All other loans and leases (including farm)............... 488.5 16.3 26.1 34.2 411.9 203.3 107.2 93.9 37.3 9.6 37.3 

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

Memo: Other Real Estate Owned (in millions) 

37.1 0.3 1.3 4.2 31.2 11.5 10.5 5.6 2.5 0.6 6.4 

All other real estate owned.................................... $3,053.1 $268.5 $726.3 $409.5 $1,648.8 $746.3 $1,059.1 $464.8 $236.1 $240.8 $305.9 

Construction and development........................... 259.9 27.9 124.4 45.9 61.8 42.0 108.1 39.4 19.0 27.1 24.3 

Commercial real estate.................................... 1,348.3 120.2 301.3 187.6 739.2 325.5 511.5 152.0 95.7 109.4 154.2 

Multifamily residential real estate........................ 67.3 6.5 26.0 9.8 25.0 14.9 12.0 11.3 4.7 4.1 20.3 

1-4 Family residential....................................... 1,120.8 89.7 240.2 160.8 630.1 192.5 412.6 253.6 83.5 80.5 98.2 

Farmland...................................................... 85.2 24.2 34.2 4.6 22.1 1.5 14.9 8.5 33.2 19.7 7.3 

Other real estate owned in foreign offices............ 171.5 0.0 0.2 0.7 170.6 169.9 0.0 0.0 0.0 0.0 1.6 

* 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. N/A - Not Available 

FDIC Quarterly Banking Profile 

First Quarter 2001 7 FDIC-Insured Commercial Banks 
SAVINGS INSTITUTION PERFORMANCE—FIRST QUARTER, 2001 

n Earnings Of $2.9 Billion Fell Just Below Year-Ago Level 

n Gains On Sales Of Mortgages And Securities Limit Earnings Decline 

n Deposit Growth Of $27 Billion Is Strongest Since 1988 

n Noncurrent Commercial Loan Rates Rise 

FDIC-insured savings institutions earned $2.9 

billion in the first quarter, $35 million less than in 

the first quarter of 2000. The average return on 

assets (ROA) was 0.95 percent for the first quarter, 

down from 1.03 percent a year ago. A dramatic 

increase in gains on sales of assets gave a boost 

to first quarter earnings. These gains were $761 

million in the first quarter, more than double fourthquarter gains of $333 million and 4.5 times the 

gains of $170 million reported in the first quarter of 

last year. Gains on sales reported by savings 

associations usually are dominated by gains on 

securities sales. However, during periods of low or 

declining interest rates such as during the first 

quarter, asset sales are likely to include a higher 

than usual proportion of mortgage loans because 

of the larger volume of mortgage originations and 

refinancings. 

Net operating income, which excludes gains on 

asset sales and any other extraordinary gains was 

$378 million (13 percent) lower than a year ago. 

Net operating income as a percent of assets was 

0.80 percent, down from 0.99 percent a year ago. 

Higher noninterest expenses, up $962 million (16 

percent), and increased provisions for loan losses, 

which were $223 million (53 percent) higher, were 

the primary causes of the decline. Provisions for 

QUARTERLY NET INCOME, 1997–2001 

$ Billions 

2.4 2.4 

2.0 

2.3 

2.6 

2.8 3.0 

2.0 

2.7 2.9 2.8 2.7 

2.9 

2.7 2.5 2.6 

2.9 

Securities and Other Gains/Losses, Net 

Net Operating Income 

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

1997 1998 1999 2000 2001 

loan losses were 137 percent of net charge-offs in 

the first quarter, up from 123 percent a year ago. 

Over 10 percent of savings institutions reported 

losses for the first quarter, up from 8 percent a year 

ago. 

Thrifts’ net interest margins benefited from falling 

short-term interest rates in the first quarter. Net 

interest margins rose by 13 basis points to 3.03 

percent from the ten-year low of 2.90 percent in the 

fourth quarter of last year. The cost of funding 

earning assets fell faster (down 21 basis points) 

than the yield on earning assets (down 9 basis 

points). The West Region showed a sharp 

increase in margins, up 28 basis points, with a 6-

basis-point improvement in asset yields while the 

cost of funding earning assets declined 22 basis 

points. 

QUARTERLY NET INTEREST MARGINS, 

1997–2001 Net Interest Margin (%) 

4.0 

3.5 

3.0 

2.5 

Assets < $1 Billion 

Assets > $1 Billion 

3.24 

2.96 

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

1997 1998 1999 2000 2001 

Almost all small savings institutions (99 percent) 

with assets of less than $100 million reported lower 

profitability in the first quarter than a year ago. 

Several specialized thrifts in this size group began 

operations over the past year and 8 have 

noninterest income that exceeds earning assets. 

Without these specialists, the remaining 

institutions with less than $100 million in assets 

reported an average annualized ROA of 0.39 

percent, compared to 0.46 percent a year ago. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 First Quarter 2001 
Most small thrifts rely heavily on net interest 

margins and the average margin for this group was 

3.27 percent, 18 basis points lower compared to 

last year’s first quarter and 7 basis points lower 

than in the fourth quarter. If the specialists are 

included, profitability was higher with an ROA of 

0.62 percent this year compared to 0.56 percent 

last year. Profitability peaked in mid-1993 for this 

group when their average ROA was 1.13 percent 

and the average net interest margin was also at a 

peak of 3.89 percent. Small thrifts are heavily 

dependent on net interest income for profitability. 

Over 18 percent of small thrifts reported losses in 

the first quarter, up from 16 percent last year. 

Deterioration in loans to commercial borrowers 

during the quarter raised the industry’s overall 

noncurrent rate. Noncurrent loans were 0.74 

percent of total loans at the end of the first quarter, 

up by 3 basis points from year-end. Noncurrent 

loans rose by $426 million during the first quarter, 

while reserves increased by only $174 million, 

resulting in a decline in the coverage ratio of loan 

loss reserves to noncurrent loans from $1.24 to 

$1.19 in reserves for each dollar of noncurrent 

loans. The noncurrent rate for commercial real 

estate loans rose 16 basis points to 1.03 percent, 

the rate for construction and land loans increased 

12 basis points to 1.19 percent, and the rate for 

commercial & industrial loans increased 10 basis 

points to 1.67 percent. Together these three 

categories of loans account for only 16 percent of 

total loans, but their annual growth rates range 

from 12 to 22 percent, which is well above overall 

loan growth of 10 percent. In retail loans, the 

COVERAGE RATIO* AND RESERVE LEVELS, 

1997–2001 

$ Billions Coverage Ratio (%) 

30 

25 

20 

15 

10 

150 

100 

50 

5 

0 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 0 

Loan-Loss Reserves ($) 

Noncurrent Loans ($) 

Coverage Ratio (%) 

1997 1998 1999 2000 2001 

* Loan-loss reserves to noncurrent loans. 

noncurrent rate for credit cards rose 17 basis 

points to 1.72 percent. 

Net charge-offs on loans increased by 37 percent 

to $469 million from $343 million a year ago. Net 

charge-offs as a percentage of average loans was 

an annualized 0.23 percent in the first quarter, up 

from 0.18 percent a year ago. Two-thirds of the 

increase in net charge-offs was due to increases in 

commercial & industrial loan charge-offs at a few 

large thrifts. The commercial & industrial loan 

charge-off rate was an annualized 1.36 percent in 

the first quarter, up from 0.43 percent a year ago. 

Asset growth was strong, up by $37.8 billion (3.1 

percent) during the quarter, and home mortgages 

accounted for much of the increase, rising by $12.2 

billion. Securities holdings declined by $2.6 billion 

led by mortgage-backed securities, which declined 

by $1.2 billion. In addition, some institutions 

transferred securities from held-to-maturity (HTM) 

to available-for-sale classification. FAS 133 

allowed this transfer without tainting the remaining 

HTM securities. Securities classified as HTM 

declined by $22 billion, while AFS securities 

increased by $20 billion. Deposits were up by $27 

billion (4 percent), funding much of the first 

quarter’s asset growth. This was the largest quarterly increase in deposits since 1988. Deposits 

were up 7 percent ($51.9 billion) from a year ago. 

In contrast, borrowings from the Federal Home 

Loan Banks were down slightly, $1.7 billion in the 

first quarter, but up by $19 billion (8 percent1) from 

a year ago. 

Equity capital increases did not contribute to 

regulatory core capital. Equity capital rose by $3.4 

billion in the first quarter to 8.47 percent of assets, 

up from 8.45 percent at the beginning of the 

quarter. Because of a few large merger 

transactions that used the purchase method of 

accounting, goodwill and other intangibles rose by 

$2.2 billion. The unrealized gain on all AFS 

securities rose by $1.2 billion partly due to the $20-

1 FHLB advances are overstated beginning in the fourth quarter of 

2000 by approximately $5 billion because one parent institution 

included a subsidiary thrift’s advances in their own TFR. The percentage change from a year ago would be 8 percent instead of 10 

percent without the double counting of the $5 billion. 

FDIC Quarterly Banking Profile 

First Quarter 2001 9 FDIC-Insured Savings Institutions 
CAPITAL RATIOS, 1995–2001 

Ratio (%) 

18 

16 

14 

12 

10 

8 

6 

4 

12 3 4 12 3 4 12 3 4 12 3 4 12 3 4 12 3 4 1 

Tier 1 Risk-Based Capital 

Total Risk-Based Capital 

Equity to Assets 

Core Capital (Leverage) 

1995 1996 1997 1998 1999 2000 2001 

billion increase in AFS securities and partly due to 

lower interest rates. Since core capital excludes 

intangible assets and the change in the value of 

AFS securities, the core capital (leverage) ratio 

declined from 7.79 percent to 7.72 percent of 

average tangible assets. 

Mergers continue to reduce the number of thrifts, 

but at a slower pace than last year. There were 

1,584 thrifts in the industry at the end of the first 

quarter, a net decline of 6 institutions. Mergers 

reduced the count of institutions by 11 this quarter, 

which was fewer than were absorbed in any 

quarter in 2000. Commercial banks accounted for 

7 of these transactions. Also, 3 thrifts converted 

their charter to a commercial bank charter, while 2 

commercial banks converted to thrift charters. No 

thrifts failed in the first quarter. There were 6 new 

institutions that began operations in the quarter. 

Other changes include mutual to stock ownership 

conversions by 10 institutions with $7.4 billion in 

assets. The number of thrifts considered “problem” 

institutions fell during the quarter from 18 with 

assets of $7.1 billion at year-end to 17 with assets 

of $6.1 billion. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 First Quarter 2001 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE I-B. Selected Indicators, FDIC-Insured Savings Institutions 

2001* 2000* 2000 1999 1998 1997 1996 

Return on assets (%)............................................. 0.95 1.03 0.92 1.00 1.01 0.93 0.70 

Return on equity (%)............................................. 11.19 12.52 11.14 11.73 11.34 10.84 8.41 

Core capital (leverage) ratio (%).............................. 7.72 7.79 7.79 7.86 7.85 7.95 7.76 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.58 0.57 0.56 0.58 0.72 0.95 1.09 

Net charge-offs to loans (%).................................... 0.23 0.18 0.20 0.17 0.22 0.25 0.32 

Asset growth rate (%)............................................. 8.81 4.32 6.39 5.52 6.06 -0.28 0.32 

Net interest margin................................................ 3.03 3.04 2.96 3.10 3.10 3.23 3.22 

Net operating income growth (%).............................. -13.38 23.66 3.47 16.64 7.68 19.98 -13.92 

Number of institutions reporting.............................. 1,584 1,635 1,590 1,640 1,689 1,780 1,926 

Percentage of unprofitable institutions (%).................. 10.16 8.50 8.43 8.23 5.27 4.10 12.05 

Number of problem institutions................................. 17 15 18 13 15 12 35 

Assets of problem institutions (in billions).................. $6 $5 $7 $6 $6 $2 $7 

Number of failed/assisted institutions........................ 0 1 1 1 0 0 1 

* Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 31. 

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

(dollar figures in millions) 

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

Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

2001 2000 2000 00:1-01:1 

1,584 1,590 1,635 -3.1 

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

CONDITION DATA

251,635 244,991 244,992 2.7 

 Total assets..................................................................... $1,259,704 $1,221,876 $1,157,728 8.8

 Loans secured by real estate............................................. 743,038 725,384 680,302 9.2 

1-4 Family Residential................................................... 586,215 574,033 540,120 8.5 

Multifamily residential property....................................... 58,125 56,769 53,929 7.8 

Commercial real estate................................................... 62,285 59,750 55,555 12.1 

Construction, development, and land................................. 36,413 34,832 30,699 18.6

 Commercial & industrial loans.......................................... 35,828 34,409 29,355 22.1

 Loans to individuals......................................................... 65,618 65,274 59,572 10.2

 Other loans & leases...................................................... 6,441 6,035 4,666 38.0

 Less: Unearned income & contra accounts**........................ 195 200 200 -2.7

 Total loans & leases......................................................... 850,730 830,902 773,695 10.0

 Less: Reserve for losses................................................... 7,497 7,322 6,885 8.9

 Net loans & leases............................................................ 843,234 823,580 766,810 10.0

 Securities........................................................................ 280,567 283,198 283,042 -0.9

 Other real estate owned................................................... 1,010 1,005 1,152 -12.3

 Goodwill and other intangibles.......................................... 19,185 17,020 15,319 25.2

 All other assets............................................................... 115,707 97,074 91,405 26.6 

Total liabilities and capital................................................... 1,259,704 1,221,876 1,157,728 8.8

 Deposits........................................................................ 764,875 737,877 712,937 7.3

 Other borrowed funds...................................................... 363,760 359,652 331,797 9.6

 Subordinated debt............................................................ 3,166 3,123 3,018 4.9

 All other liabilities............................................................ 21,221 17,964 15,070 40.8

 Equity capital.................................................................. 106,683 103,261 94,905 12.4 

Loans and leases 30-89 days past due................................. 8,375 8,612 6,282 33.3 

Noncurrent loans and leases................................................ 6,309 5,883 5,432 16.2 

Restructured loans and leases............................................. 1,389 1,393 1,638 -15.2 

Direct and indirect investments in real estate........................... 628 620 655 -4.2 

Mortgage-backed securities................................................ 212,190 213,426 218,848 -3.0 

Earning assets.................................................................. 1,161,856 1,131,101 1,075,445 8.0 

FHLB Advances (Source: TFR, FHFB, Call Reports)............... 259,697 261,423 235,701 10.2 

Unused loan commitments................................................... 274,459 247,580 203,649 34.8 

INCOME DATA 

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

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

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

Provision for loan and lease losses........................ 

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

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

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

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

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

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

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

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

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

Preliminary 

Full Year Full Year 1st Quarter 1st Quarter %Change 

2000 1999 %Change 2001 2000 00:1-01:1 

$84,136 $74,203 13.4 $22,411 $20,030 11.9 

52,224 42,880 21.8 13,813 11,960 15.5

31,912 31,323 1.9 8,597 8,070 6.5 

2,039 1,563 30.5 645 422 52.8 

11,410 9,789 16.6 2,965 2,654 11.7 

25,589 23,993 6.7 7,104 6,142 15.7 

793 1,437 -44.8 761 170 348.4 

5,742 6,125 -6.3 1,631 1,390 17.3 

-3 5 N/M -34 6 N/M

10,742 10,875 -1.2 2,910 2,945 -1.2 

1,553 1,195 30.0 469 343 36.8 

5,884 6,100 -3.5 1,186 1,473 -19.5

10,236 9,893 3.5 2,443 2,821 -13.4 

N/M - Not Meaningful 

FDIC Quarterly Banking Profile 

First Quarter 2001 11 FDIC-Insured Commercial Banks 
TABLE III-B. First Quarter 2001, FDIC-Insured Savings Institutions 

FIRST QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,584 618 822 102 42 623 210 405 123 108 115 

Total assets (in billions).................................... $1,259.7 $31.4 $251.6 $197.1 $779.6 $412.9 $88.8 $188.5 $42.8 $68.1 $458.5 

Total deposits (in billions).................................... 764.9 24.7 190.2 134.3 415.6 278.2 61.8 129.3 27.6 40.2 227.8 

Net income (in millions).................................... 2,909.6 48.0 444.0 348.5 2,069.0 972.6 121.4 317.1 78.9 191.2 1,228.4 

% of unprofitable institutions.............................. 10.2 18.3 4.7 6.9 4.8 8.7 12.9 11.4 12.2 9.3 7.8 

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

Performance ratios (annualized, %) 

47.5 39.0 51.1 59.8 71.4 45.1 48.6 46.7 47.2 50.0 59.1 

Yield on earning assets.................................... 7.89 7.73 7.71 7.89 7.96 7.60 7.95 8.20 7.59 8.32 7.98 

Cost of funding earning assets........................... 4.86 4.42 4.48 4.78 5.03 4.33 5.15 5.07 4.93 5.03 5.18 

Net interest margin.......................................... 3.03 3.31 3.23 3.11 2.93 3.27 2.80 3.13 2.65 3.28 2.80 

Noninterest income to earning assets.................. 1.04 2.53 0.74 0.88 1.13 0.92 1.65 1.30 0.81 1.21 0.93 

Noninterest expense to earning assets.................. 2.50 4.83 2.79 2.63 2.27 2.61 3.20 3.22 2.29 2.74 1.95 

Loan and lease loss provision to assets............... 0.21 0.12 0.11 0.16 0.26 0.13 0.62 0.40 0.12 0.30 0.11 

Net operating income to assets........................... 0.80 0.50 0.65 0.70 0.88 0.86 0.35 0.38 0.63 1.09 0.97 

Return on assets............................................. 0.95 0.62 0.72 0.72 1.09 0.96 0.56 0.68 0.74 1.14 1.11 

Return on equity............................................. 11.19 4.76 6.79 8.17 14.58 9.67 6.58 8.06 7.96 13.96 15.73 

Net charge-offs to loans and leases..................... 0.23 0.09 0.10 0.25 0.27 0.20 0.32 0.44 0.12 0.24 0.14 

Loan and lease loss provision to net charge-offs...... 137.30 212.52 163.40 91.50 144.20 105.27 277.13 120.82 134.09 194.23 122.35 

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

Condition Ratios (%) 

59.47 82.38 69.55 64.45 53.53 59.41 71.28 71.11 64.50 60.19 50.53 

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

Loss allowance to: 

92.23 93.79 93.66 92.11 91.74 92.04 93.42 90.96 92.89 93.17 92.50 

Loans and leases.......................................... 0.88 0.72 0.85 0.99 0.87 0.97 0.89 0.89 0.66 0.93 0.82 

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

Noncurrent assets plus 

118.82 87.14 126.54 98.16 125.63 135.10 130.44 97.98 89.07 76.24 129.52 

other real estate owned to assets..................... 0.58 0.65 0.53 0.86 0.52 0.52 0.60 0.78 0.76 0.89 0.49 

Noncurrent RE loans to RE loans........................ 0.69 0.79 0.65 0.97 0.63 0.68 0.60 0.76 0.72 1.31 0.62 

Equity capital ratio............................................. 8.47 12.91 10.55 8.82 7.53 9.89 8.53 8.46 9.31 8.16 7.15 

Core capital (leverage) ratio.............................. 7.72 12.52 10.02 8.13 6.68 8.78 8.18 7.80 8.58 8.13 6.52 

Tier 1 risk-based capital ratio.............................. 12.47 22.86 16.86 12.71 10.68 14.05 13.02 12.13 14.80 12.53 10.82 

Total risk-based capital ratio.............................. 13.68 23.91 17.90 13.76 11.99 15.37 14.48 13.43 15.61 13.45 11.92 

Gross real estate assets to gross assets............... 75.50 68.20 70.56 74.58 77.62 70.65 70.11 71.83 77.44 61.25 84.36 

Gross 1-4 family mortgages to gross assets............ 46.25 48.55 45.01 38.66 48.48 41.24 44.91 51.06 49.39 28.42 51.42 

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

Structural Changes (YTD) 

110.24 84.31 89.61 99.49 124.70 93.28 99.58 107.13 110.83 110.26 135.56 

New Charters................................................ 6 5 1 0 0 1 1 1 0 1 2 

Thrifts absorbed by mergers........................... 11 3 5 2 1 4 0 1 3 1 2 

Failed Thrifts................................................ 

PRIOR FIRST QUARTERS

 (The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Number of institutions...............................2000 1,635 653 834 113 35 635 223 420 127 116 114

 ...............................................1998 1,756 743 862 115 36 680 249 458 130 117 122

 ...............................................1996 2,005 896 951 124 34 747 299 516 151 135 157 

Total assets (in billions).............................2000 $1,157.7 $32.7 $244.0 $228.3 $652.8 $390.4 $79.3 $174.2 $42.2 $78.6 $393.0

 ................................................1998 1,040.3 39.0 256.4 220.4 524.5 347.0 66.8 174.0 34.5 62.1 356.0

 ................................................1996 1,016.4 46.1 279.1 256.6 434.6 346.5 69.7 169.5 51.5 78.9 300.3 

Return on assets (%)................................2000 1.03 0.56 0.82 0.98 1.15 1.01 0.78 0.98 0.85 0.98 1.15

 ................................................1998 1.01 0.79 0.99 1.06 1.02 1.00 0.88 0.98 1.00 1.36 1.00

 ................................................1996 

Net charge-offs to loans & leases (%) 

1.01 0.70 0.89 1.10 1.06 1.01 0.88 0.92 0.90 2.62 0.69 

 ................................................2000 0.18 0.07 0.08 0.38 0.15 0.10 0.22 0.32 0.10 0.26 0.16

 ................................................1998 0.21 0.11 0.10 0.33 0.22 0.16 0.36 0.19 0.17 0.45 0.20

 ................................................1996 

Noncurrent assets plus 

0.30 0.08 0.17 0.28 0.42 0.27 0.33 0.11 0.12 0.24 0.46 

OREO to assets (%)*.....................2000 0.57 0.64 0.52 0.91 0.46 0.60 0.57 0.68 0.52 0.85 0.44

 ................................................1998 0.89 0.84 0.78 1.23 0.80 1.00 0.81 0.65 0.60 1.09 0.90

 .................................................1996 1.23 1.03 0.98 1.46 1.28 1.42 1.33 0.58 0.63 1.16 1.47 

Equity capital ratio (%)..............................2000 8.20 12.56 10.35 8.26 7.15 9.41 9.01 8.61 9.56 8.11 6.52

 ................................................1998 8.79 12.01 10.48 8.95 7.66 9.71 10.15 9.21 9.35 8.74 7.40

 ................................................1996 8.42 10.78 9.79 8.46 7.27 8.98 9.45 9.16 8.61 7.75 7.27 

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 12 First Quarter 2001 
TABLE IV-B. Full Year 2000, FDIC-Insured Savings Institutions 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,590 626 817 107 40 626 211 405 125 110 113 

Total assets (in billions).................................... $1,221.9 $31.1 $244.9 $207.5 $738.4 $400.0 $85.9 $181.8 $42.9 $84.5 $426.8 

Total deposits (in billions).................................... 737.9 24.1 184.6 139.9 389.3 273.6 58.2 123.5 27.2 47.5 207.9 

Net income (in millions)....................................... 10,741.7 166.6 1,784.8 1,794.9 6,995.4 3,461.1 461.2 1,639.5 224.1 845.7 4,110.2 

% of unprofitable institutions.............................. 8.4 16.0 3.7 2.8 2.5 5.8 12.8 9.6 12.0 5.5 9.7 

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

Performance Ratios (%) 

58.1 55.0 60.2 58.9 62.5 61.7 55.0 56.8 54.4 53.6 57.5 

Yield on earning assets....................................... 7.80 7.72 7.66 7.95 7.81 7.65 8.00 8.11 7.72 8.27 7.70 

Cost of funding earning assets........................... 4.84 4.25 4.38 4.78 5.05 4.35 4.98 4.99 4.99 5.20 5.15 

Net interest margin.......................................... 2.96 3.47 3.28 3.18 2.77 3.31 3.01 3.12 2.73 3.07 2.56 

Noninterest income to earning assets.................. 1.06 2.40 0.70 1.04 1.13 0.84 1.29 1.73 0.81 1.23 0.92 

Noninterest expense to earning assets.................. 2.37 4.82 2.71 2.59 2.09 2.56 3.08 2.97 2.31 2.56 1.78 

Credit loss provision to assets.............................. 0.18 0.10 0.12 0.26 0.17 0.12 0.38 0.41 0.17 0.25 0.07 

Net operating income to assets........................... 0.88 0.53 0.72 0.83 0.97 0.88 0.50 0.84 0.62 1.02 0.97 

Return on assets............................................. 0.92 0.56 0.76 0.90 1.00 0.90 0.59 0.94 0.53 1.06 1.02 

Return on equity................................................ 11.14 4.23 7.32 10.25 13.83 9.26 6.69 11.02 5.61 13.13 15.33 

Net charge-offs to loans and leases..................... 0.20 0.06 0.09 0.36 0.19 0.14 0.31 0.37 0.16 0.22 0.14 

Credit loss provision to net charge-offs*............... 131.30 245.65 184.12 108.00 133.63 136.91 176.14 146.04 143.13 162.19 76.30 

Efficiency ratio................................................ 57.11 81.53 67.26 59.83 51.12 58.84 70.78 59.69 63.59 58.55 49.35 

Condition Ratios (%) 

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

Loss allowance to: 

92.57 93.85 93.93 92.68 92.03 92.29 93.61 90.99 92.78 92.47 93.29 

Loans and leases.......................................... 0.88 0.71 0.83 1.01 0.87 0.99 0.79 0.87 0.65 0.86 0.84 

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

Noncurrent assets plus 

124.46 88.33 127.00 96.06 139.36 135.53 114.93 100.54 87.64 81.51 154.70 

other real estate owned to assets..................... 0.56 0.64 0.53 0.89 0.48 0.54 0.62 0.75 0.71 0.84 0.42 

Noncurrent RE loans to RE loans........................ 0.66 0.76 0.63 1.05 0.56 0.70 0.64 0.74 0.74 1.04 0.53 

Equity capital ratio............................................. 8.45 13.10 10.53 8.84 7.46 10.02 8.50 8.49 9.35 8.00 6.96 

Core capital (leverage) ratio................................. 7.79 12.74 10.12 8.13 6.72 8.89 8.23 7.77 8.65 7.94 6.59 

Tier 1 risk-based capital ratio.............................. 12.69 23.14 16.98 12.70 10.90 14.22 13.34 12.00 14.95 11.76 11.33 

Total risk-based capital ratio.............................. 13.95 24.19 18.09 13.87 12.25 15.65 14.83 13.32 15.73 12.88 12.43 

Gross real estate assets to gross assets............... 76.50 69.07 71.27 73.23 79.46 70.10 72.31 72.62 78.09 64.63 87.17 

Gross 1-4 family mortgages to gross assets............ 46.69 49.71 46.41 39.04 48.81 41.71 45.67 53.11 50.72 32.31 51.28 

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

Structural Changes 

111.61 86.96 91.17 101.60 126.44 93.07 102.73 111.06 114.23 121.74 136.18 

New charters................................................ 31 29 2 0 0 14 4 5 5 0 3 

Thrifts absorbed by mergers.............................. 82 28 41 12 1 24 18 26 6 4 4 

Failed Thrifts................................................ 

PRIOR FULL YEARS**

 (The way it was...) 

1 1 0 0 0 0 1 0 0 0 0 

Number of institutions...............................1999 1,640 664 829 113 34 636 225 426 126 115 112

 ...............................................1997 1,780 765 858 122 35 687 253 462 134 118 126

 ...............................................1995 2,030 910 959 130 31 754 305 522 153 137 159 

Total assets (in billions).............................1999 $1,148.5 $33.7 $244.4 $230.3 $640.0 $383.9 $76.2 $187.7 $41.4 $76.3 $383.0

 ................................................1997 1026.2 39.9 250.4 239.7 496.1 342.8 64.8 174.2 33.6 64.0 346.8

 ................................................1995 1025.7 46.7 278.5 281.3 419.2 352.3 70.9 169.9 52.2 74.9 305.6 

Return on assets (%)................................1999 1.00 0.62 0.86 1.04 1.06 1.02 0.78 0.99 0.83 1.14 1.02

 ................................................1997 0.93 0.75 0.95 1.06 0.87 1.00 0.84 0.90 1.01 1.00 0.86

 ................................................1995 

Net charge-offs to loans & leases (%) 

0.77 0.67 0.80 0.84 0.72 0.88 0.87 0.85 0.98 1.05 0.51 

 ................................................1999 0.17 0.09 0.10 0.29 0.15 0.11 0.24 0.22 0.15 0.27 0.16

 ................................................1997 0.25 0.10 0.17 0.35 0.26 0.22 0.47 0.24 0.07 0.46 0.22

 ................................................1995 

Noncurrent assets plus 

0.34 0.14 0.17 0.38 0.45 0.39 0.14 0.14 0.18 0.23 0.47 

OREO to assets (%)***........................1999 0.58 0.65 0.54 0.90 0.47 0.62 0.56 0.63 0.49 0.80 0.48

 ................................................1997 0.95 0.87 0.82 1.31 0.84 1.12 0.86 0.67 0.57 1.10 0.94

 .................................................1995 1.20 1.00 0.99 1.39 1.24 1.40 1.14 0.53 0.61 1.21 1.46 

Equity capital ratio (%)..............................1999 8.27 12.50 10.34 8.56 7.15 9.52 9.33 8.48 9.67 8.19 6.55

 ................................................1997 8.71 11.91 10.49 8.73 7.54 9.62 10.12 9.20 9.44 8.33 7.29

 ................................................1995 8.39 10.73 9.84 8.54 7.06 9.05 9.50 9.07 8.48 7.60 7.17 

* For TFR filers, includes only loan and lease loss provisions. 

** 1995 data do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 

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

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

FDIC Quarterly Banking Profile 

First Quarter 2001 13 FDIC-Insured Savings Institutions 
TABLE V-B. Loan Performance, FDIC-Insured Savings Institutions 

March 31, 2001 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.......................................................... 0.90 1.67 1.04 0.85 0.83 0.84 0.90 0.98 1.52 1.70 0.77 

Construction, development, and land.................................................................... 1.44 1.71 1.53 1.66 1.23 1.18 1.47 1.33 2.47 2.28 0.89 

Commercial real estate........................................................................... 0.76 1.39 0.93 0.88 0.48 0.69 0.79 1.04 1.12 1.78 0.38 

Multifamily residential real estate................................................................... 0.25 1.32 0.44 0.44 0.10 0.28 0.69 0.57 0.17 2.06 0.11 

Home equity loans................................................................ 0.40 0.84 0.60 0.42 0.30 0.45 0.24 0.63 0.36 0.00 0.23 

Other 1-4 Family residential...................................................................... 0.96 1.74 1.08 0.84 0.92 0.93 0.88 1.00 1.60 1.53 0.89 

Commercial and industrial loans................................................................ 1.55 2.20 2.14 1.36 1.38 1.20 1.87 2.27 2.38 1.52 1.60 

Loans to individuals......................................................... 1.74 2.22 1.67 1.32 1.83 1.73 2.67 1.78 1.51 0.73 2.02 

Credit card loans.............................................................................. 1.81 0.68 2.65 2.04 1.76 1.88 4.28 2.15 2.33 0.59 1.66 

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

Percent of Loans Noncurrent* 

1.74 2.36 1.60 1.31 1.87 1.73 2.30 1.55 1.46 0.86 2.11 

All real estate loans...................................................................... 0.69 0.79 0.65 0.97 0.63 0.68 0.60 0.76 0.72 1.31 0.62 

Construction, development, and land.................................................................... 1.19 0.97 1.19 1.12 1.26 0.83 0.95 1.37 1.98 1.28 1.28 

Commercial real estate.......................................................................... 1.02 1.04 0.93 1.29 0.91 0.91 0.94 1.07 1.30 1.23 1.13 

Multifamily residential real estate................................................................ 0.28 0.69 0.28 0.53 0.17 0.28 0.28 0.37 0.10 5.07 0.10 

Home equity loans............................................................................... 0.18 0.19 0.18 0.31 0.14 0.20 0.07 0.30 0.15 0.02 0.08 

Other 1-4 Family residential........................................................ 0.68 0.76 0.60 0.99 0.65 0.70 0.56 0.75 0.56 1.14 0.64 

Commercial and industrial loans............................................................ 1.67 1.58 1.29 2.10 1.64 1.33 1.21 2.64 2.03 2.70 1.47 

Loans to individuals.............................................................................. 0.85 0.96 0.59 0.68 0.94 0.61 1.01 1.54 0.44 0.49 0.42 

Credit card loans.............................................................................. 1.72 0.56 1.01 1.14 1.79 1.52 2.94 2.35 1.07 0.78 0.85 

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

Percent of Loans Charged-off (net, annual) 

0.56 1.00 0.55 0.67 0.51 0.47 0.56 1.04 0.40 0.22 0.39 

All real estate loans................................................................................ 0.04 0.03 0.02 0.08 0.03 0.05 0.02 0.05 0.05 -0.01 0.03 

Construction, development, and land.................................................................... 0.04 0.14 0.01 0.11 0.01 0.03 0.01 0.02 0.15 -0.03 0.12 

Commercial real estate........................................................................ 0.07 0.01 0.04 0.20 0.01 0.10 0.00 0.06 0.13 0.03 0.01 

Multifamily residential real estate................................................. 0.00 -0.11 0.02 0.00 -0.01 0.02 0.00 0.02 -0.14 0.00 -0.01 

Home equity loans.......................................................................... 0.08 0.04 0.01 0.10 0.10 0.12 0.16 0.08 0.04 0.07 -0.01 

Other 1-4 Family residential....................................................................... 0.04 0.02 0.02 0.07 0.04 0.04 0.02 0.05 0.04 -0.01 0.03 

Commercial and industrial loans.......................................................................... 1.36 0.53 0.69 0.86 1.84 1.11 2.18 0.84 0.57 0.38 2.63 

Loans to individuals............................................................................... 1.70 0.61 0.86 1.90 1.91 1.15 1.46 3.03 0.90 0.90 1.61 

Credit card loans........................................................................ 3.61 0.78 2.96 3.57 3.68 3.59 4.32 5.27 5.26 1.26 3.19 

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

Loans Outstanding (in billions) 

1.04 0.60 0.63 1.84 0.97 0.76 0.84 1.59 0.65 0.55 1.42 

All real estate loans..................................................................................... $743.0 $18.7 $153.3 $117.4 $453.6 $224.9 $50.5 $115.7 $27.5 $31.3 $293.1 

Construction, development, and land.................................................................... 36.4 1.1 9.6 9.8 15.9 7.2 5.3 5.6 2.0 6.6 9.6 

Commercial real estate........................................................................... 62.0 1.7 20.6 16.5 23.2 29.5 4.1 7.7 3.1 3.9 13.7 

Multifamily residential real estate........................................................................ 58.1 0.5 9.0 14.4 34.3 16.7 1.0 5.5 1.1 1.2 32.6 

Home equity loans.............................................................................. 24.1 0.5 5.7 4.0 13.9 8.5 2.3 6.0 0.6 0.8 6.0 

Other 1-4 Family residential........................................................................... 562.1 14.9 108.2 72.7 366.3 162.9 37.9 90.9 20.6 18.7 231.1 

Commercial and industrial loans...................................................................... 35.8 0.7 7.3 7.6 20.2 16.6 3.4 4.7 1.1 3.2 6.9 

Loans to individuals.................................................................... 65.6 1.5 10.8 8.7 44.5 17.9 7.9 17.2 2.1 10.0 10.5 

Credit card loans.......................................................... 16.5 0.1 1.1 0.3 15.1 2.5 1.5 6.6 0.1 4.9 1.0 

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

Memo: Other Real Estate Owned (in millions)** 

48.6 1.4 9.6 8.4 29.2 15.3 6.4 10.5 2.0 5.1 9.3 

All other real estate owned........................................................................... $1,010.5 $31.8 $186.7 $341.3 $450.7 $278.6 $108.2 $190.1 $96.8 $64.6 $272.2 

Construction, development, and land.................................................................... 164.8 3.4 23.2 40.3 98.0 10.1 56.8 13.3 46.4 8.3 30.0 

Commercial real estate........................................................................ 242.5 4.8 46.6 150.3 40.9 118.1 11.2 32.8 24.1 26.2 30.2 

Multifamily residential real estate.............................................................. 31.1 0.7 10.4 16.6 3.3 5.9 0.9 9.2 0.4 9.6 5.1 

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

Troubled Real Estate Asset Rates*** 

(% of total RE assets) 

586.8 23.3 109.9 140.8 312.7 150.1 40.4 135.8 28.5 20.9 211.1 

All real estate loans.............................................................................. 0.83 0.95 0.77 1.25 0.73 0.81 0.82 0.92 1.06 1.51 0.71 

Construction, development, and land.................................................................... 1.64 1.28 1.42 1.52 1.87 0.97 1.99 1.60 4.17 1.41 1.58 

Commercial real estate............................................................... 1.42 1.35 1.15 2.20 1.09 1.31 1.21 1.50 2.06 1.91 1.36 

Multifamily residential real estate........................................................... 0.33 0.82 0.39 0.64 0.18 0.31 0.37 0.53 0.14 5.84 0.11 

1-4 family residential............................................................................... 0.76 0.89 0.68 1.14 0.71 0.76 0.63 0.86 0.68 1.20 0.72 

* 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. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 14 First Quarter 2001 
ALL FDIC-INSURED INSTITUTIONS 

n Insured-Deposit Growth Maintains Momentum In First Quarter 

n BIF Reserve Ratio Falls To 1.32 Percent; SAIF Remains At 1.43 Percent 

n Only One Insured Institution Fails During The First Quarter 

FDIC-insured deposits increased by 2.8 percent in 

the first three months of 2001, continuing the strong 

growth of 2000, during which insured deposits grew 

by 6.5 percent. In the 10 years since banks and 

thrifts began reporting insured deposits on a 

quarterly basis, this was the largest first-quarter 

growth they have reported, exceeding the 1.8-

percent increase reported in the first quarter of last 

year. Deposits insured by the Bank Insurance Fund 

(BIF) rose 3.1 percent during the first quarter of 

2001, after a 7-percent increase in 2000, and those 

insured by the Savings Association Insurance Fund 

(SAIF) grew 1.7 percent, after gaining 4.9 percent in 

2000. 

A significant factor in the growth of insured deposits 

since last year has been the conversions by at least 

two banking organizations of brokerage-originated 

cash management funds to FDIC-insured accounts 

at brokerage-affiliated banks. Over the last four 

quarters, these “sweeps” have accounted for an 

estimated $56.6-billion increase in insured deposits, 

including $20.4 billion in the first quarter of 2001. 

Largely as a result of this activity, fully insured 

brokered deposits nearly doubled over the last four 

quarters, rising $88 billion. The conversions added 

an estimated $54.3 billion in BIF-insured deposits 

(30 percent of the total BIF increase) and $2.3 

billion in SAIF-insured deposits (6 percent of the 

total SAIF increase). 

The BIF grew by 1.5 percent during the first three 

months of 2001, ending the first quarter with a 

balance of $31.43 billion. Because the fund’s 

growth did not keep pace with the growth of BIFinsured deposits, the reserve ratio fell from 1.35 

percent at year-end to 1.32 percent on March 31.1 

Insured-deposit growth attributable to the conversion transactions described above lowered the 

1The actual one-quarter decline in the BIF reserve ratio was closer 

to 2 basis points, falling from 1.34646 percent to 1.32497 percent, 

or 2.15 basis points. 

BIF reserve ratio by 1 basis point in the first quarter 

and by 3 basis points since the programs began last 

year. 

The SAIF totaled $10.97 billion on March 31, having 

grown by 2 percent since year-end. The fund’s 

reserve ratio was unchanged, at 1.43 percent of 

estimated insured deposits. Insured-deposit growth 

due to the brokerage conversions has had less of 

an impact on the reserve ratio of the SAIF, causing 

a decline of approximately one-half of a basis point. 

The rapid growth of insured deposits in the first 

quarter countered a long-term decline in the use of 

insured deposits as the primary funding alternative 

for most banks and thrifts. As a percentage of 

domestic liabilities, insured deposits, on average, 

had declined from 70 percent in 1992 to 51.7 

percent at the end of 2000. As of March 31, 2001, 

insured deposits increased to 52.1 percent of 

domestic liabilities. 

Only one FDIC-insured institution failed during the 

first quarter of 2000, a BIF-member commercial 

bank with total assets of $17 million. The loss to the 

BIF is estimated at $100,000. 

QUARTERLY CHANGES IN INSURED DEPOSITS, 

1999–2001 

Percent Change (not annualized) 

1 2 3 4 1 2 3 4 1 

Bank Insurance Fund (BIF) 

Savings Association Insurance Fund (SAIF) 

-0.5 

-1.2 

0.3 

-0.5 

1.0 

0.0 

1.0 1.0 

1.9 

1.4 1.4 1.4 

2.1 

0.3 

1.4 

2.0 

3.1 

1.7 

0 

1999 2000 2001 

FDIC Quarterly Banking Profile 

First Quarter 2001 15 All FDIC-Insured Institutions 
 

 

 

 

 

 

 

 

 

 

 

 

 

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

(dollar figures in millions) 2001** 2000** 2000 1999 1998 1997 1996 

Number of institutions reporting.............................. 9,821 10,151 9,904 10,221 10,463 10,922 11,453 

Total assets.........................................................$ 7,570,518 $7,003,248 $7,460,955 $6,883,699 $6,530,950 $6,041,128 $5,607,333 

Total deposits...................................................... 4,948,598 4,590,267 4,914,819 4,538,088 4,386,298 4,125,862 3,925,059 

Number of problem institutions................................. 95 87 94 79 84 92 117 

Assets of problem institutions (in billions).................. $24 $10 $24 $10 $11 $6 $12 

Number of failed/assisted institutions..................... 1 ... 2 7 8 3 1 6 

Assets of failed/assisted institutions (in billions)............ $0.02 $0.15 $0.41 $1.56 $0.37 $0.03 $0.22 

** As of March 31. 

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

(dollar figures in millions) 

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

Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

2001 2000 2000 00:1-01:1 

 9,821 9,904 10,151 -3.3 

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

CONDITION DATA 

1,933,360 1,914,616 1,893,818 2.1 

Total assets..................................................................... $7,570,518 $7,460,955 $7,003,248 8.1

 Loans secured by real estate............................................. 2,442,422 2,396,047 2,241,691 9.0 

1-4 Family residential...................................................... 1,512,245 1,490,720 1,402,623 7.8 

Home equity loans...................................................... 154,241 150,603 127,686 20.8 

Multifamily residential property.......................................... 119,085 116,975 111,206 7.1 

Commercial real estate................................................... 531,256 524,999 489,324 8.6 

Construction, development, and land................................. 210,122 196,970 173,176 21.3 

Other real estate loans................................................... 69,714 66,383 65,363 6.7 

Commercial & industrial loans 1,081,331 1,085,046 1,030,281 5.0

 Loans to individuals......................................................... 663,124 674,998 616,266 7.6

 Credit cards & related plans.......................................... 233,072 265,931 222,613 4.7

 Other loans & leases...................................................... 494,968 494,447 456,847 8.3

 Less: Unearned income & contra accounts........................ 2,969 3,114 3,452 -14.0

 Total loans & leases......................................................... 4,678,876 4,647,424 4,341,633 7.8

 Less: Reserve for losses................................................... 72,162 71,412 66,746 8.1 

Net loans and leases......................................................... 4,606,713 4,576,012 4,274,887 7.8 

Securities........................................................................ 1,328,541 1,360,963 1,339,649 -0.8 

Other real estate owned...................................................... 4,064 3,908 3,917 3.8 

Goodwill and other intangibles............................................. 122,731 119,725 116,632 5.2 

All other assets.................................................................. 1,508,469 1,400,347 1,268,164 18.9 

Total liabilities and capital................................................... 7,570,518 7,460,955 7,003,248 8.1

 Deposits....................................................................... 4,948,598 4,914,819 4,590,267 7.8

 Other borrowed funds...................................................... 1,506,985 1,466,961 1,420,569 6.1

 Subordinated debt............................................................ 93,689 90,166 81,952 14.3

 All other liabilities............................................................ 368,324 356,270 324,010 13.7

 Equity capital.................................................................. 652,922 632,740 586,451 11.3 

Loans and leases 30-89 days past due................................. 55,629 56,537 46,087 20.7 

Noncurrent loans and leases................................................ 52,399 48,805 40,035 30.9 

Restructured loans and leases............................................. 2,607 2,705 2,769 -5.8 

Direct and indirect investments in real estate........................... 902 914 964 -6.5 

Mortgage-backed securities................................................ 706,028 683,902 680,164 3.8 

Earning assets.................................................................. 6,604,596 6,507,179 6,121,151 7.9 

FHLB Advances (Source: TFR, FHFB, Call Reports).................. 444,225 436,760 396,753 12.0 

Unused loan commitments................................................... 4,825,299 4,712,286 4,269,735 13.0 

INCOME DATA 

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

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

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

Provision for loan and lease losses........................ 

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

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

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

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

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

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

Preliminary 

Full Year Full Year 1st Quarter 1st Quarter %Change 

2000 1999 %Change 2001 2000 00:1-01:1 

$512,252 $441,561 16.0 $132,017 $120,414 9.6 

276,515 218,031 26.8 71,607 62,269 15.0

235,737 223,530 5.5 60,410 58,146 3.9 

31,994 23,378 36.9 8,583 6,241 37.5 

164,845 154,193 6.9 43,114 41,092 4.9 

241,552 228,209 5.8 62,095 58,135 6.8 

-1,492 1,617 N/M 1,932 -560 N/M 

43,725 45,501 -3.9 11,621 11,879 -2.2 

-35 174 N/M -370 23 N/M

81,783 82,426 -0.8 22,788 22,446 1.5 

* Excludes insured branches of foreign banks (IBAs). N/M - Not meaningful 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 16 First Quarter 2001 
 

 

 

 

 

TABLE III-C. Selected Insurance Fund Indicators* 

(dollar figures in millions) Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

2001 2000 2000 00:1-01:1 

Bank Insurance Fund 

Reserve ratio (%)..................................................................... 1.32 1.35 1.36 -2.9 

Fund balance (unaudited)......................................................... 31,426 30,975 29,739 5.7 

Estimated insured deposits...................................................... 2,371,830 2,300,470 2,191,733 8.2 

SAIF-member Oakars............................................................ 60,693 58,935 47,945 26.6 

BIF-members........................................................................ 2,311,137 2,241,536 2,143,788 7.8 

Assessment base..................................................................... 3,363,903 3,326,092 3,086,393 9.0 

SAIF-member Oakars............................................................ 61,606 59,887 48,864 26.1 

BIF-members........................................................................ 3,302,297 3,266,205 3,037,529 8.7 

Savings Association Insurance Fund 

Reserve ratio (%)..................................................................... 1.43 1.43 1.43 0.0 

Fund balance (unaudited)......................................................... 10,973 10,759 10,435 5.2 

Estimated insured deposits...................................................... 767,739 754,633 727,695 5.5 

BIF-member Oakars............................................................... 312,416 309,852 284,412 9.8 

SAIF-member Sassers......................................................... 70,453 68,336 71,769 -1.8 

Other SAIF members............................................................ 384,870 376,445 371,514 3.6 

Assessment base..................................................................... 846,313 823,300 787,616 7.5 

BIF-member Oakars............................................................... 313,018 310,700 284,937 9.9 

SAIF-member Sassers......................................................... 86,612 82,851 83,665 3.5 

Other SAIF members............................................................ 446,683 429,749 419,014 6.6 

Insurance Fund Reserve Ratios* Fund Balances and Insured Deposits 

Percent of Insured Deposits ($Millions) 

BIF BIF-Insured SAIF SAIF-Insured 

Balance Deposits Balance Deposits 

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

12/97 28,293 2,056,558 9,368 689,915 

12/98 29,612 2,134,425 9,840 716,029 

12/99 29,414 2,151,454 10,281 717,591 

3/00 29,739 2,191,733 10,435 727,695 

6/00 29,780 2,222,349 10,538 737,962 

9/00 30,555 2,269,166 10,706 740,165 

12/00 30,975 2,300,470 10,759 754,633 

3/01 31,426 2,371,830 10,973 767,739 

* A reserve ratio is the fund balance as a percentage of estimated insured deposits. As with other Call Report items, prior 

periods may reflect adjustments. As a result, prior period reserve ratios may differ from previously reported values. Fund 

balances in 2001 are unaudited. BIF-insured deposit totals include U.S. branches of foreign banks. 

Target 

Ratio 

1.25 

0.0 

12/96 12/97 12/98 12/99 3/00 6/00 9/00 12/00 3/01 

1.34 

1.38 

1.39 

1.37 

1.36 

1.34 

1.35 1.35 

1.31 

1.36 

1.37 

1.43 1.43 1.43 

1.45 

1.43 1.43 

1.32 

BIF 

SAIF 

TABLE IV-C. Closed/Assisted Institutions 

(dollar figures in millions) 

BIF Members 

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

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

SAIF Members 

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

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

** Through March 31. 

2001** 2000** 2000 1999 1998 1997 1996 

1 

$17 

1 

$113 

6 

$378 

7 

$1,490 

3 

$371 

1 

$27 

5 

$186 

0 

$0 

1 

$30 

1 

$30 

1 

$71 

0 

$0 

0 

$0 

1 

$34 

FDIC Quarterly Banking Profile 

First Quarter 2001 17 All FDIC-Insured Institutions 
 

 

 

 

TABLE V-C. Selected Indicators, By Fund Membership* 

(dollar figures in millions) 2001** 2000** 2000 1999 1998 1997 1996 

BIF Members 

Number of institutions reporting................................................ 8,491 8,571 8,771 8,834 9,031 9,404 9,823 

BIF-member Oakars............................................................ 750 739 756 744 745 778 793 

Other BIF-members............................................................... 7,741 8,032 7,815 8,090 8,286 8,626 9,030 

Total assets...........................................................................$ 6,589,822 $6,095,413 $6,508,796 $5,980,167 $5,702,773 $5,285,403 $4,857,761 

Total deposits........................................................................ 4,350,071 4,034,528 4,337,720 3,987,385 3,843,816 3,611,453 3,404,204 

Net income........................................................................... 20,605 20,109 73,714 73,975 64,334 61,459 54,483 

Return on assets (%)............................................................... 1.26 1.33 1.18 1.30 1.18 1.22 1.17 

Return on equity (%)............................................................... 14.62 15.81 13.92 15.11 13.81 14.44 14.14 

Noncurrent assets plus OREO to assets (%)................................. 0.77 0.63 0.72 0.62 0.64 0.67 0.77 

Number of problem institutions................................................... 75 72 74 66 68 73 86 

Assets of problem institutions................................................... $12,754 $5,143 $10,787 $4,450 $5,326 $4,598 $6,624 

Number of failed/assisted institutions....................................... 1 ... 1 6 7 3 1 5 

Assets of failed/assisted institutions............................................. $17 $113 $378 $1,490 $371 $27 $182 

SAIF Members 

Number of institutions reporting................................................ 1,330 1,333 1,380 1,387 1,432 1,518 1,629 

SAIF-member Oakars............................................................ 124 125 123 123 116 112 94 

Other SAIF-members............................................................ 1,206 1,255 1,210 1,264 1,316 1,406 1,535 

Total assets........................................................................... $980,695 $907,835 $952,160 $903,531 $828,177 $755,724 $749,573 

Total deposits........................................................................ 598,527 555,738 577,099 550,703 542,481 514,409 520,855 

Net income........................................................................... 2,183 2,338 8,069 8,450 7,598 6,486 4,892 

Return on assets (%)............................................................... 0.91 1.04 0.89 0.99 0.98 0.94 0.67 

Return on equity (%)............................................................... 11.15 13.09 11.12 11.97 11.34 11.13 8.08 

Noncurrent assets plus OREO to assets (%)................................. 0.67 0.63 0.65 0.64 0.80 0.98 1.07 

Number of problem institutions................................................... 20 15 20 13 16 19 31 

Assets of problem institutions................................................... $10,835 $5,325 $13,053 $5,524 $5,992 $1,662 $5,548 

Number of failed/assisted institutions....................................... 0 ... 1 1 1 0 0 1 

Assets of failed/assisted institutions............................................. $0 $30 $30 $71 $0 $0 $35 

* Excludes insured branches of foreign banks (IBAs). 

** Through March 31, ratios annualized where appropriate. 

TABLE VI-C. Estimated FDIC-Insured Deposits by Fund Membership and Type of Institution 

(dollar figures in millions) 

March 31, 2001 

Commercial Banks and Savings Institutions 

Number of Total Domestic 

Institutions Assets Deposits* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks............................................. 8,237 6,310,814 3,512,628 2,153,661 313,259 2,466,920 

BIF-member..................................................................... 8,130 6,219,695 3,447,934 2,137,582 278,939 2,416,521 

SAIF-member.................................................................. 107 91,119 64,694 16,079 34,320 50,398 

FDIC-Supervised............................................................... 5,055 1,203,688 897,371 599,697 76,123 675,820 

OCC-Supervised............................................................... 2,202 3,440,296 1,871,767 1,140,559 172,776 1,313,335 

Federal Reserve-Supervised................................................ 980 1,666,830 743,489 413,405 64,360 477,765 

FDIC-Insured Savings Institutions............................................. 1,584 1,259,704 764,875 216,899 454,480 671,379 

OTS-Supervised Savings Institutions....................................... 1,059 958,295 556,358 89,274 397,245 486,519 

BIF-member..................................................................... 39 130,081 66,033 47,968 12,375 60,343 

SAIF-member.................................................................. 1,020 828,213 490,325 41,306 384,870 426,176 

FDIC-Supervised State Savings Banks.................................... 525 301,409 208,516 127,625 57,235 184,860 

BIF-member..................................................................... 322 240,046 165,056 124,317 21,102 145,419 

SAIF-member..................................................................

Total Commercial Banks and 

 203 61,363 43,460 3,308 36,133 39,441 

Savings Institutions................................................... 9,821 7,570,518 4,277,502 2,370,560 767,739 3,138,299 

BIF-member........................................................................ 8,491 6,589,822 3,679,023 2,309,867 312,416 2,622,283 

SAIF-member.....................................................................

Other FDIC-Insured Institutions 

 1,330 980,695 598,479 60,693 455,323 516,016 

U.S. Branches of Foreign Banks............................................. 19 9,189 3,759 1,271 0 1,271 

Total FDIC-Insured Institutions....................................... 9,840 7,579,707 4,281,261 2,371,830 767,739 3,139,570 

* Excludes $671 billion in foreign office deposits, which are uninsured. 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 18 First Quarter 2001 
TABLE VII-C. Assessment Base Distribution and Rate Schedules 

BIF Assessment Base Distribution 

Assessable Deposits in Millions as of March 31, 2001 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2001 

Capital Group

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

Assessable deposit base...........................

2. Adequately capitalized 

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

Assessable deposit base...........................

3. Undercapitalized 

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

Assessable deposit base...........................

7,860 

 $3,237,649 

150 

 $30,198 

13 

 $2,168 

92.4 

96.2 

1.8 

0.9 

0.2 

0.1 

398 4.7 

$82,856 2.5 

22 0.3 

$2,202 0.1 

0 0.0 

$0 0.0 

54 

$5,845 

8 

$2,042 

5 

$943 

0.6 

0.2 

0.1 

0.1 

0.1 

0.0 

Note: "Number" reflects the number of BIF members; "Base" reflects the BIF-assessable deposits held by both BIF and SAIF members. 

Institutions are categorized based on capitalization and a supervisory subgroup rating, which is generally determined 

by on-site examinations. 

SAIF Assessment Base Distribution 

Assessable Deposits in Millions as of March 31, 2001 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2001 

Capital Group

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

Assessable deposit base...........................

2. Adequately capitalized 

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

Assessable deposit base...........................

3. Undercapitalized 

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

Assessable deposit base...........................

1,178 

 $797,399 

11 

 $6,380 

1 

 < $100 

88.6 

94.2 

0.8 

0.8 

0.1 

0.0 

106 8.0 

$30,325 3.6 

8 0.6 

$2,644 0.3 

1 0.1 

<$100 0.0 

14 

$2,473 

8 

$5,173 

3 

$1,810 

1.1 

0.3 

0.6 

0.6 

0.2 

0.2 

Note: "Number" reflects the number of SAIF members; "Base" reflects the SAIF-assessable deposits held by both BIF and SAIF members. 

Institutions are categorized based on capitalization and a supervisory subgroup rating, which is generally determined 

by on-site examinations. 

Assessment Rate Schedules 

Second Semiannual 2001 Assessment Period 

Cents Per $100 of Assessable Deposits 

Capital Group

Supervisory Risk Subgroup 

A B C 

1. Well Capitalized....................................... 

2. Adequately Capitalized..............................

3. Undercapitalized.......................................

0 

 3 

 10 

3 

10 

24 

17 

24 

27 

Note: Rates for the BIF and the SAIF are set separately by the FDIC. 

Currently, the rate schedules are identical. 

FDIC Quarterly Banking Profile 

First Quarter 2001 19 All FDIC-Insured Institutions 
NUMBER OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1993–2001 

Number of Institutions 

572 

318 

193 

117 

92 84 80 76 80 79 87 89 90 94 95 

Savings Institutions 

Commercial Banks 

12/9312/9412/9512/9612/9712/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 12/00 3/01 

Savings Institutions 146 71 49 35 21 15 16 14 11 13 15 16 15 18 17 

Commercial Banks 426 247 144 82 71 69 64 62 69 66 72 73 75 76 78 

ASSETS OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1993–2001 

$ Billions 

334 

72 

31 12 7 11 10 9 8 10 10 19 19 24 23 

Savings Institutions 

Commercial Banks 

12/93 12/94 12/95 12/96 12/97 12/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 12/00 3/01 

Savings Institutions 92 39 14 7 2 6 5 4 4 6 5 8 7 7 6 

Commercial Banks 242 33 17 5 5 5 5 5 4 4 5 11 12 17 17 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 20 First Quarter 2001 
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 I-B through V-B.) 

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 self-liquidating 

institution primarily funded by the FSLIC Resolution Fund 

(FRF). Savings institutions in Resolution Trust Corporation 

conservatorships are also excluded from these tables while 

in conservatorship, where applicable. 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 I-C through VII-C.) 

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 SAIF-member 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 unless otherwise indicated. 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 (FFIEC) Call 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. 

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 Call Reports. 

Parent institutions are required to file consolidated reports, 

while their subsidiary financial institutions are still required to 

file separate reports. Data from subsidiary institution reports 

are included in the Quarterly Banking Profile tables, which 

can lead to double-counting. No adjustments are made for 

any double-counting of subsidiary data. 

All asset and liability figures used in calculating performance 

ratios represent average amounts for the period (beginningof-period amount plus end-of-period amount plus any interim 

periods, divided by the total number of periods). For “poolingof-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. 

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

institution’s home state. In addition, institutions may change 

their charters, resulting in an inter-industry migration, e.g., 

savings institutions can convert to commercial banks or commercial banks may convert to savings institutions. These situations can affect state and regional statistics. 

ACCOUNTING CHANGES 

FASB Statement No. 133 Accounting for Derivative 

Instruments and Hedging Activities — establishes new 

accounting and reporting standards. Derivatives were previously off-balance sheet items, but beginning in 2001 all 

banks must recognize derivatives as either assets or liabilities on the balance sheet, measured at fair value. A derivative may be specifically designated as a “fair value hedge,” a 

“cash flow hedge,” or a hedge of a foreign currency exposure. The accounting for changes in the value of a derivative 

(gains and losses) depends on the intended use of the derivative, its resulting designation, and the effectiveness of the 

hedge. Derivatives held for purposes other than trading are 

reported as “other assets” (positive fair values) or “other liabilities” (negative fair values). For a fair value hedge, the gain 

or loss is recognized in earnings and “effectively” offsets loss 

or gain on the hedged item attributable to the risk being 

hedged. Any ineffectiveness of the hedge could result in a 

net gain or loss on the income statement. Accumulated net 

gains (losses) on cash flow hedges are recorded on the balance sheet as “accumulated other comprehensive income” 

and the periodic change in the accumulated net gains (losses) for cash flow hedges is reflected directly in equity as the 

value of the derivative changes. 

Initial transition adjustments upon adoption of FAS 133 are 

reported as adjustments to net income in the income statement as extraordinary items. Upon implementing FAS 133, 

a bank may transfer any debt security categorized as heldto-maturity into the available-for-sale category or the trading 

category. Unrealized gains (losses) on transferred held-tomaturity debt securities on the date of initial application must 

be reflected as an adjustment to net income if transferred to 

the trading category or an adjustment to equity if transferred 

to the available-for-sale category. 

Subchapter S Corporations — The Small Business Job 

Protection Act of 1996 changed the Internal Revenue Code 

FDIC Quarterly Banking Profile 

First Quarter 2001 21 Notes to Users 
to allow financial institutions to elect Subchapter S corporation status, beginning in 1997. A Subchapter S corporation is 

treated as a pass-through entity, similar to a partnership, for 

federal income tax purposes. It is generally not subject to any 

federal income taxes at the corporate level. Its taxable 

income flows through to its shareholders in proportion to their 

stock ownership, and the shareholders generally pay federal 

income taxes on their share of this taxable income. This can 

have the effect of reducing institutions’ reported taxes and 

increasing their after-tax earnings. 

The election of Subchapter S status may result in an increase in shareholders’ personal tax liability. Therefore, some 

S corporations may increase the amount of earnings distributed as dividends to compensate for higher personal taxes. 

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’ liability on acceptances outstanding, assets held in trading accounts, federal funds sold, securities purchased with 

agreements to resell, fair market value of derivatives, and 

other assets. 

All other liabilities — bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance 

sheet credit losses, fair market value of derivatives, and 

other liabilities. 

Assessment base distribution — assessable deposits 

consist of BIF and SAIF deposits in banks’ domestic offices 

with certain adjustments. Each institution’s assessment 

depends on its assigned risk-based capital category and 

supervisory risk subgroup: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) 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 — — — <2 

*As a percentage of risk-weighted assets. 

For purpose of BIF and SAIF assessments, risk-based 

assessment rules combine the three lowest capital rating 

categories into a single “undercapitalized” group. Supervisory risk subgroup assignments are based on supervisory 

ratings. Generally, the strongest institutions (those rated 1 or 

2) are in subgroup A, those rated 3 are in subgroup B, and 

those rated 4 or 5 are in subgroup C. 

BIF-insured deposits (estimated) — the portion of estimated insured deposits that is insured by the BIF. For SAIFmember “Oakar” institutions, it represents the adjusted 

attributable amount acquired from BIF members. 

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 minority interest in consolidated subsidiaries, less goodwill and other ineligible intangible 

assets. The amount of eligible intangibles (including 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. 

Derivatives (notional amount) — 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 interest-rate 

contracts). 

Futures and forward contracts — a contract in which the 

buyer agrees to purchase and the seller agrees to sell, at a 

specified future date, a specific quantity of an underlying variable or index at a specified price or yield. These contracts 

exist for a variety of variables or indices, (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 acquires 

the right to buy from or sell to another party some specified 

amount of an underlying variable or index at a stated price 

(strike price) during 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 variable or index 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 either 

fixed, or determined for each settlement date by multiplying 

the quantity (notional principal) of the underlying variable or 

index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each 

payment but is not exchanged. 

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. 

Efficiency Ratio — Noninterest expense less amortization 

of intangible assets as a percent of net interest income plus 

noninterest income. This ratio measures the proportion of net 

operating revenues that are absorbed by overhead expenses, so that a lower value indicates greater efficiency. 

Estimated insured deposits — in general, insured deposits 

are estimated to be total domestic deposits minus estimated 

uninsured deposits. The uninsured estimate is calculated as 

the sum of the excess amounts in accounts over $100,000. 

Beginning June 30, 2000 the amount of estimated uninsured 

deposits is adjusted to consider a financial institution’s estimate, where the institution reports that it has a better method 

or procedure for calculating uninsured deposits. 

Failed/assisted institutions — an institution fails when regulators take control of the institution, placing the assets and 

liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the FDIC 

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 — all borrowings by FDIC insured institutions from the Federal Home Loan Bank System (FHLB), as 

reported by Call Report filers (or as furnished by the Federal 

Housing Finance Board (FHFB) for Call filers prior to 2001) 

and as reported by TFR filers. 

FDIC Quarterly Banking Profile 

Notes to Users 22 First Quarter 2001 
Goodwill and other intangibles — intangible assets 

include 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 securities 

with remaining maturities or repricing intervals of over five years. 

Mortgage-backed securities — certificates of participation 

in pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored 

or private enterprises. Also, see “Securities”, below. 

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 due, or 

in nonaccrual status. 

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. 

Other borrowed funds — federal funds purchased, securities sold with agreements to repurchase, demand notes 

issued to the U.S. Treasury, FHLB advances, other borrowed 

money, mortgage indebtedness, obligations under capitalized leases and 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 institutions that increased their net income (or decreased 

their losses) compared to the same period 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 concern, they are rated either 

a “4” or “5”. For all BIF-member institutions, and for all SAIFmember 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. 

Reserves for losses — the allowance for loan and lease 

losses on a consolidated basis. Prior to March 31, 2001 

reserves for losses included the allocated transfer risk 

reserve, which is no longer included as part of the loss 

reserve, but netted from loans and leases. 

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 offbalance-sheet accounts. 

SAIF-insured deposits (estimated) — the portion of estimated insured deposits that is insured by the SAIF. For BIFmember “Oakar” institutions, it represents the adjusted 

attributable amount acquired from SAIF members. 

Securities — excludes securities held in trading accounts. 

Banks’ securities portfolios consist of securities designated 

as “held-to-maturity”, which are reported at amortized cost 

(book value), and securities designated as “available-forsale”, reported at fair (market) value. 

Securities gains (losses) — realized gains (losses) on 

held-to-maturity and available-for-sale securities, before 

adjustments for income taxes. Thrift Financial Report (TFR) 

filers also include gains (losses) on the sales of assets held 

for sale. 

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. 

Unearned income & contra accounts — unearned income 

for Call Report filers only. 

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. 

Yield on earning assets — total interest, dividend and fee 

income earned on loans and investments as a percentage of 

average earning assets. 

FDIC Quarterly Banking Profile 

First Quarter 2001 23 Notes to Users