An Update on Emerging Issues in Banking

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Quarterly Banking Profile

November 26, 2002

Commercial Banking Performance, Third Quarter 2002

● GAINS ON SECURITIES SALES KEEP EARNINGS NEAR RECORD LEVEL

● WEAKNESS IN OVERSEAS OPERATIONS LIMITS INDUSTRY PROFITS

● MARGINS IMPROVE AT COMMUNITY BANKS, DECLINE AT LARGER INSTITUTIONS

● STRONG MORTGAGE DEMAND FUELS GROWTH IN LOANS

● ASSET-QUALITY PROBLEMS CONTINUE TO GROW AT LARGE BANKS
Profitability of Banks' Domestic Operations Remains Strong

Weaknesses in commercial banks' corporate and overseas business lines were mitigated by beneficial effects from 

low interest rates and strength in consumer loan demand in the third quarter of 2002, as earnings almost set a new 

record. Insured commercial banks earned $23.4 billion in the quarter, falling just $11 million short of the quarterly 

earnings record, set in the second quarter of 2002. The slight decline in net income was caused primarily by 

sharply lower income from banks' international operations, which fell by $1.2 billion (58.6 percent). Earnings were 

also held down by higher expenses for loan losses, reduced income from market-sensitive sources, such as trading 

and investment banking activities, fiduciary income, and venture capital investments, and by lower servicing fees.

The industry's net income from domestic operations was $1.2 billion (5.5 percent) higher than in the second 

quarter, but much of the improvement was in nonrecurring items, rather than in revenues from ongoing operations. 

The greatest revenue increase came from gains on sales of securities, which were $1.5 billion (145.8 percent) 

higher than in the second quarter. Income from securitization activities and from sales of loans and other assets 

was higher than in the previous quarter, contributing to a $1.0 billion (2.4 percent) increase in the industry's total 

noninterest income. Net interest income registered a modest improvement, increasing by $765 million (1.3 percent). 

Although 5 of the 10 largest commercial banks had lower earnings than in the second quarter, most banks 

registered improvements. More than 60 percent of all banks reported earnings increases compared to the second 

quarter. The average ROA in the third quarter was 1.37 percent, down from the record 1.41 percent in the second 

quarter, even though a majority of banks (55.6 percent) saw their ROAs improve. Almost two-thirds of all banks 

(65.7 percent) had an ROA of 1 percent or better in the third quarter. Quarterly earnings were $6.0 billion (34.8 

percent) higher than a year ago, when sharply higher loan-loss provisions at many large banks depressed industry 

results.

Performance Continues To Outstrip 2001 Results

Through the first nine months of 2002, commercial banks earned $68.6 billion, up $12.9 billion (23.2 percent) from 

the same period in 2001. The industry's ROA so far this year is 1.37 percent, compared to 1.17 percent in the first 

three quarters of 2001. Almost three out of every four banks (72.6 percent) reported improved year-to-date 

earnings. The main source of the earnings improvement has been higher net interest income (up $19.3 billion, or

12.2 percent). Net interest margins are above the levels of a year ago, and interest-earning assets have grown by

6.2 percent during the past 12 months. These improvements, along with a $10.8 billion (9.2 percent) increase in 

noninterest income, have outweighed a $7.2 billion (25.6 percent) rise in provisions for loan losses. Almost half of 

the increase in loss provisions this year (46.6 percent) has been in banks' international operations.

Interest-Rate Environment Helps Community Banks' Net Interest Margins

The industry's net interest margin fell for the second consecutive quarter, but a $134.5-billion (2.3-percent) increase 

in interest-earning assets during the quarter helped lift net interest income above the level of the second quarter.

The average margin declined from 4.11 percent to 4.07 percent, although a majority of commercial banks reported 

margin increases. Smaller institutions rely more on retail (core) deposits to fund their assets, and with interest rates 

at historic lows, many community banks have difficulty lowering the interest rates they pay to retail depositors when 

short-term interest rates decline. As a result, margins at community banks have tended to not improve until after 

rates stabilize. Larger banks rely more on interest-sensitive liabilities, which reprice quickly when short-term interest 

rates change; their margins have tended to improve when rates are falling, but tend to narrow when interest rates 

are stable.

C&I Loans At Large Banks Remain A Source Of Asset-Quality Woes

Credit-quality problems continued to grow in commercial and industrial (C&I) loan portfolios at large banks. The 

industry's noncurrent rate on C&I loans increased from 2.87 to 3.01 percent during the quarter, the first time since 

the first quarter of 1993 that it has been above 3 percent. Unlike the second quarter, when rising levels of 

noncurrent C&I loans were caused by non-U.S. customers, most of the $819 million (3.0 percent) increase in the 

third quarter occurred in loans to domestic borrowers. Noncurrent C&I loans to non-U.S. borrowers were up by only

$42 million (0.7 percent). As has been the case throughout most of the period that troubled C&I loans have been 

rising, fewer than one out of three commercial banks had an increase in noncurrent C&I loans during the third 

quarter. However, these banks hold more than 40 percent of the industry's C&I loans. Banks charged-off $4.8 

billion in C&I loans during the quarter, $1.5 billion (44.3 percent) more than in the third quarter of 2001. Almost a
quarter (23.9 percent) of these charge-offs consisted of loans to non-U.S. C&I borrowers. C&I charge-offs 

accounted for 41.3 percent of all loans charged-off by commercial banks in the quarter.

Loss Rate On Credit Cards Remains High

Charge-offs of credit card loans totaled $3.9 billion in the third quarter, an increase of $1.0 billion (35.6 percent) 

compared to a year ago, and $133 million (3.5 percent) more than banks charged-off in the second quarter. The 

annualized net charge-off rate on credit card loans in the third quarter was 6.05 percent, slightly lower than the 6.08 

percent rate in the second quarter, but well above the 5.20 percent rate of a year earlier. This is the fourth 

consecutive quarter that the loss rate on banks' credit card loans has been above 6 percent, a level never 

previously reached in any quarter during the 19 years that banks have reported credit card charge-offs. Even with 

the high level of charge-offs, the amount of credit-card loans that were noncurrent increased by $685 million (13.6 

percent) during the quarter. Also, the amount of credit cards that were 30-89 days delinquent on scheduled 

payments increased by $1.0 billion (15.8 percent). Over the last 12 months, noncurrent credit-card loans have 

increased by $972 million (20.4 percent), and 30-89 day delinquencies are up by $1.4 billion (22.5 percent). Despite 

the historically high loss levels, the profitability of credit card lending continued to improve, as net interest margins 

remained well above the industry average, and income from fees and securitization activities increased.

Growth In Equity Capital And Reserves Lags Growth In Assets, Loans

Equity capital increased by $15.5 billion (2.5 percent) during the quarter, but did not quite keep pace with the 

growth in banking assets, as the industry's equity-to-assets ratio fell from 9.24 percent to 9.22 percent. This level is 

only seven basis points below the 60-year high of 9.29 percent reached at the end of the first quarter. Retained 

earnings contributed $8.0 billion to capital in the third quarter, compared to just $3.8 billion in the third quarter of 

2001. Reserves increased by $1.2 billion (1.6 percent), as loss provisions of $12.7 billion exceeded net charge-offs 

of $11.5 billion. However, strong loan growth caused the ratio of reserves to total loans to decline from 1.87 percent 

to 1.85 percent. Also, the increase in noncurrent loans caused the industry's "coverage ratio" to decline from $1.28 

in reserves for every $1.00 of noncurrent loans, to $1.24, the eleventh consecutive quarter that this ratio has 

declined. At its peak, in mid-1998, the coverage ratio stood at $1.94.

Mortgage Activity Accounts For Largest Share Of Industry Asset Growth

Commercial bank assets increased by $183 billion (2.7 percent) during the quarter, as mortgage lending activity 

contributed to growth in banks' loans and securities portfolios. Residential mortgage loans increased by $58.2 

billion (7.1 percent), while home equity loans grew by $12.7 billion (6.8 percent). Bank holdings of mortgage-backed 

securities increased by $33.7 billion (5.1 percent). Together, these assets accounted for 57.3 percent of the 

increase in commercial bank assets during the quarter. Strong growth was also reported in credit card loans (up

$17.3 billion, or 6.9 percent), loans to depository institutions (up $10.3 billion, or 8.1 percent), and real estate 

construction and development loans (up $7.2 billion, or 3.6 percent). The industry's C&I loans declined for the 

seventh consecutive quarter, falling by $17.0 billion (1.8 percent), even though a majority of banks (50.8 percent) 

reported increases in their C&I loans during the quarter. Overall, C&I loans have declined by $130.4 billion (12.4 

percent) since the end of 2000.

Money Continues To Flow Into Savings Deposits

Domestic deposits continued to grow very strongly in the third quarter. Deposits in domestic offices of commercial 

banks grew by $120.7 billion (3.2 percent), led by a $92.0 billion (4.5 percent) increase in savings deposits.

Deposits in banks' foreign offices declined by $27.9 billion (4.4 percent). Commercial banks also increased their 

borrowings from Federal Home Loan Banks by $22.8 billion (10.4 percent). Brokered deposits increased by $12.0 

billion (5.1 percent), their largest increase in over a year.

Industry Consolidation Slows In Third Quarter

After declining by 112 institutions in the first six months of 2002, the number of insured commercial banks reporting 

financial results fell by 35 institutions during the third quarter, from 7,968 to 7,933. There were 23 new charters 

added, while mergers absorbed 58 banks, and one insured commercial bank failed. During the first six months of
the year, mergers absorbed 152 commercial banks. The number of commercial banks on the FDIC's "Problem List" 

increased from 115 to 126 during the quarter, and total assets of "problem" banks increased from $36 billion to $38 

billion.

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

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

Table III-A. First Three Quarters 2002, FDIC-Insured Commercial Banks

Table IV-A. Third Quarter 2002, FDIC-Insured Commercial Banks

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

Click on a chart image to retrieve the related data points.

Chart 2. Community Bank Margins Improve For Second Consecutive Quarter

Chart 3. Banks' Foreign Operations Are Providing Less Support To Earnings

Chart 4. Loan Losses Remain Concentrated Among Larger Banks

Chart 5. Troubled Commercial Loans Continue To Increase

Chart 6. C&I Loans and Credit Cards Account For Most Of The Industry's Credit Losses

Chart 7. Quarterly Noninterest Income of Insured Commercial Banks

Send comments on this FYI to:

Ross Waldrop RWaldrop@fdic.gov

Send feedback and technical questions about the FYI series to: 

fyi@fdic.gov

All media inquiries should be addressed to:

David Barr, FDIC Office of Public Affairs, dbarr@fdic.gov.
TABLE I-A. Selected Indicators, FDIC-Insured Commercial Banks

* Through September 30, ratios annualized where appropriate. Asset growth rates are for 12 months ending September 30.

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

(dollar figures in millions) Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter %Change

2002 2002 2001 01:3-02:3

Number ofinstitutions reporting.......................................... 7,933 7,968 8,149 -2.7

Total employees (full-time equivalent)................................. 1,728,928 1,739,061 1,671,152 3.5

CONDITION DATA

Total assets.................................................................. $6,932,512 $6,749,833 $6,555,519 5.8

Loans secured byreal estate.......................................... 1,971,837 1,887,263 1,747,875 12.8

Commercial & industrialloans.......................................... 921,557 938,554 1,011,433 -8.9

Loans to individuals...................................................... 688,195 662,491 607,562 13.3

Farmloans.................................................................. 47,670 47,644 48,427 -1.6

Other loans& leases................................................... 443,544 439,583 448,147 -1.0

Less: Unearned income................................................ 3,634 3,830 2,665 36.4

Total loans & leases...................................................... 4,069,206 3,971,705 3,860,780 5.4

Less: Reservefor losses................................................ 75,500 74,342 68,213 10.7

Net loansand leases...................................................... 3,993,707 3,897,363 3,792,567 5.3

Securities..................................................................... 1,292,320 1,237,134 1,106,870 16.8

Other real estate owned................................................... 3,954 3,874 3,459 14.3

Goodwill and other intangibles.......................................... 122,211 129,571 111,728 9.4

All other assets............................................................ 1,520,338 1,481,891 1,540,896 -1.3

Total liabilities and capital................................................ 6,932,512 6,749,833 6,555,519 5.8

Noninterest-bearing deposits.............................................

Interest-bearingdeposits..................................................

Otherborrowedfunds......................................................

891,859 826,843 777,491 14.7

3,649,212 3,621,433 3,517,121 3.8

1,242,941 1,191,088 1,167,133 6.5

Subordinated debt......................................................... 92,773 93,712 92,439 0.4

All other liabilities......................................................... 416,322 392,819 415,615 0.2

Equity capital............................................................... 639,421 623,938 585,720 9.2

Loans and leases 30-89 days past due................................. 46,542 45,814 52,559 -11.4

Noncurrent loansand leases............................................. 61,177 58,437 51,693 18.3

Restructured loansand leases.......................................... 1,783 1,633 1,061 68.1

Direct and indirect investments in real estate........................ 252 270 253 -0.6

1-4 Family residential mortgages....................................... 1,083,920 1,012,960 931,415 16.4

Mortgage-backedsecurities................................................ 695,047 661,393 560,263 24.1

Earning assets............................................................... 5,931,431 5,796,956 5,585,109 6.2

Long-term assets (5+ years)............................................. 1,446,223 1,397,904 1,264,493 14.4

Volatile liabilities............................................................ 2,168,117 2,128,561 2,182,809 -0.7

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

FHLB Advances...............................................................

612,973 640,905 680,897 -10.0

240,591 217,834 191,545 25.6

Unused loan commitments................................................ 5,261,038 5,183,224 4,732,508 11.2

Derivatives..................................................................... 53,682,288 50,577,822 51,348,981 4.5

INCOME DATA

Preliminary 

First Three 

Qtrs 2002

First Three 

Qtrs 2001

Preliminary 

3rd Quarter

%Change 2002

3rd Quarter 

2001

%Change 

01:3-02:3

Total interest income......................................... $269,769 $310,507 -13.1 $90,680 $100,111 -9.4

Total interest expense...................................... 93,002 152,994 -39.2 31,070 45,855 -32.2

Net interest income....................................... 176,767 157,513 12.2 59,610 54,256 9.9

Provisionforloanandleaselosses..................... 35,182 28,004 25.6 12,740 11,583 10.0

Total noninterest income.................................... 127,668 116,909 9.2 43,647 38,838 12.4

Total noninterest expense................................. 171,257 164,787 3.9 58,372 56,173 3.9

Securities gains (losses).................................... 4,174 2,921 42.9 2,466 1,007 144.9

Applicable income taxes.................................... 33,897 28,580 18.6 11,507 8,986 28.1

Extraordinary gains, net.................................... -2 -265 N/M -40 8 N/M

Net income................................................... 68,617 55,708 23.2 23,409 17,365 34.8

Net charge-offs................................................ 33,181 23,837 39.2 11,546 9,258 24.7

Cash dividends............................................... 49,286 39,207 25.7 15,377 13,572 13.3

Net operating income.................................... 65,793 53,957 21.9 21,778 16,667 30.7

Note: These are preliminary data and are subject to further revision. N/M - Not meaningful

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

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

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

Noncurrent assets plus

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

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

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

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

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

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

Percentage of unprofitable institutions (%)...............

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

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

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

2002*

1.37

14.90

8.00

2001*

1.17

13.40

7.81

2001

1.15

13.04

7.78

2000

1.19

14.01

7.70

1999

1.31

15.30

7.79

1998

1.19

13.92

7.54

1997

1.23

14.68

7.55

0.97

1.12

5.75

4.11

21.94

7,933

6.20

126

$38 

8

0.85

0.83

8.05

3.84

-2.71

8,149

7.60

74

$14 

3

0.92

0.95

5.20

3.90

-1.97

8,081

8.09

95

$36 

3

0.74

0.67

8.88

3.95

1.79

8,315

7.34

76

$17 

6

0.63

0.61

5.38

4.07

20.38

8,579

7.52

66

$4 

7

0.65

0.67

8.53

4.07

2.26

8,773

6.11

69

$5 

3

0.66

0.64

9.53

4.21

12.43

9,142

4.85

71

$5 

1
TABLE III-A. First Three Quarters 2002, FDIC-Insured Commercial Banks

Asset Size Distribution Geographic Distribution by Region

Less $100 Million $1 Billion Greater East West

FIRST THREE QUARTERSPreliminary 

(The way it is...)

All 

Institutions

than $100 

Million

to

$1 Billion

to

$10 Billion

than $10 

Billion

Northeast

Southeast Central

MidwestSouthwest West

Number of institutions reporting........................... 7,933 4,285 3,249 319 80 628 1,378 1,690 2,063 1,310 864

Total assets (in billions).................................... $6,932.5 $216.8 $855.5 $917.0 $4,943.2 $2,351.2 $1,717.8 $1,424.0 $384.8 $288.0 $766.6 

Total deposits (in billions)................................. 4,541.1 182.2 695.6 631.0 3,032.3 1,449.8 1,169.8 902.7 254.8 233.4 530.6

Net income (in millions).................................... 68,617 1,702 7,811 10,200 48,905 19,893 17,497 14,131 4,693 2,796 9,608

% of unprofitable institutions.............................. 6.2 9.4 2.4 2.8 3.8 9.6 9.4 4.7 3.2 4.8 10.8

% of institutions with earnings gains..................... 72.6 67.3 79.0 77.7 76.3 73.4 77.3 76.6 70.3 68.5 68.5

Performance ratios (annualized, %)

Yield on earning assets.................................... 6.27 6.79 6.80 6.43 6.12 6.13 6.20 6.05 7.29 6.45 6.69

Cost of funding earning assets........................... 2.16 2.45 2.36 2.14 2.12 2.39 2.11 2.19 2.18 1.95 1.64

Net interest margin.......................................... 4.11 4.34 4.44 4.29 4.00 3.74 4.09 3.86 5.11 4.50 5.05

Noninterest income to earning assets.................. 2.97 1.12 1.56 2.90 3.34 3.84 2.64 2.21 3.14 1.65 3.00

Noninterest expense to earning assets............... 3.98 3.66 3.69 4.09 4.03 4.39 3.90 3.30 4.48 3.83 4.09

Loan and lease loss provision to assets............... 0.70 0.28 0.36 0.57 0.80 0.95 0.44 0.55 1.02 0.31 0.81

Net operating income to assets........................... 1.31 1.05 1.26 1.50 1.30 1.11 1.35 1.29 1.64 1.28 1.75

Pretax return on assets.............................. 2.05 1.39 1.78 2.33 2.07 1.77 2.06 2.03 2.43 1.84 2.78

Return on assets............................................. 1.37 1.08 1.27 1.54 1.37 1.17 1.41 1.37 1.67 1.34 1.76

Return on equity............................................. 14.90 9.69 12.99 15.12 15.51 13.51 14.81 16.03 16.55 13.61 16.57

Net charge-offs to loans and leases..................... 1.12 0.30 0.38 0.92 1.34 1.78 0.67 0.81 1.30 0.39 1.22

Loan and lease loss provision to net charge-offs... 106.03 154.92 147.32 100.57 104.01 105.13 105.61 103.89 114.42 139.35 103.90

Efficiency ratio................................................ 55.04 66.89 61.11 55.91 53.52 56.74 56.42 53.00 52.76 61.81 49.96

Condition Ratios (%)

Earning assets to total assets........................... 85.56 91.43 91.46 89.99 83.46 82.39 84.65 88.22 90.38 89.74 88.39

Loss allowance to:

Loans and leases.......................................... 1.86 1.45 1.46 1.79 1.97 2.29 1.56 1.70 1.78 1.50 1.91

Noncurrent loans and leases........................... 123.41 123.39 143.77 162.97 115.97 106.71 131.50 115.80 155.46 138.82 179.05

Noncurrent assets plus

other real estate owned to assets..................... 0.97 0.89 0.80 0.74 1.05 1.16 0.81 1.05 0.89 0.75 0.74

Equity capital ratio.......................................... 9.22 11.28 9.93 10.33 8.81 8.69 9.52 8.55 10.51 10.07 10.50

Core capital (leverage) ratio.............................. 8.00 10.83 9.31 9.17 7.41 7.60 7.76 7.80 9.40 8.84 9.04

Tier 1 risk-based capital ratio.............................. 10.18 16.06 13.03 12.65 9.11 10.05 9.60 9.36 12.75 13.01 11.33

Total risk-based capital ratio.............................. 12.95 17.18 14.22 14.68 12.31 13.08 12.31 12.42 14.12 14.44 14.03

Net loans and leases to deposits........................ 87.95 72.50 79.03 86.35 91.25 78.18 88.34 101.24 104.49 70.90 90.68

Structural Changes (YTD)

New Charters............................................. 65 64 1 0 0 7 22 3 7 6 20

Banks absorbed by mergers........................... 210 91 96 18 5 24 46 36 41 33 30

Failed banks................................................ 8 5 2 1 0 1 3 2 0 1 1

PRIOR FIRST THREE QUARTERS

(The way it was...)

Number of institutions......................................2001 8,149 4,598 3,150 321 80 650 1,411 1,738 2,106 1,351 893

...............................................1999 8,621 5,240 2,989 315 77 682 1,442 1,878 2,219 1,467 933

...............................................1997 9,214 5,977 2,874 297 66 724 1,536 2,020 2,343 1,613 978

Total assets (in billions)...................................2001 $6,555.5 $225.8 $803.2 $898.2 $4,628.4 $2,343.0 $1,647.8 $1,251.0 $335.6 $269.9 $708.2

................................................1999 5,513.1 245.4 743.6 881.8 3,642.3 1,898.5 1,493.7 931.7 373.8 306.7 508.6

................................................1997 4,869.3 272.3 711.1 899.7 2,986.2 1,839.9 898.5 793.4 329.2 341.4 666.9

Return on assets (%).......................................2001 1.17 0.96 1.22 1.31 1.14 1.15 1.03 1.04 1.42 1.18 1.68

................................................1999 1.32 1.08 1.36 1.50 1.29 1.25 1.29 1.29 1.51 1.21 1.68

................................................1997 1.24 1.25 1.38 1.30 1.18 1.13 1.29 1.27 1.40 1.24 1.31

Net charge-offs to loans & leases (%)

................................................2001 0.83 0.27 0.35 0.90 0.93 0.96 0.69 0.76 0.69 0.39 1.20

................................................1999 0.58 0.35 0.32 0.64 0.64 0.76 0.40 0.35 0.74 0.42 0.94

................................................1997 0.62 0.23 0.33 1.03 0.58 0.71 0.44 0.48 0.82 0.33 0.83

Noncurrent assets plus

OREO to assets (%)....................................2001 0.85 0.82 0.73 0.77 0.89 0.82 0.85 0.96 0.73 0.74 0.84

................................................1999 0.67 0.72 0.63 0.62 0.69 0.78 0.57 0.59 0.62 0.68 0.72

................................................1997 0.68 0.77 0.71 0.82 0.62 0.72 0.61 0.62 0.67 0.55 0.77

Equity capital ratio (%)....................................2001 8.93 11.25 9.86 9.79 8.49 8.09 9.58 8.61 9.23 9.83 10.31

................................................1999 8.51 10.92 9.40 9.27 7.97 7.91 8.59 8.21 8.89 8.73 10.62

................................................1997 8.53 10.96 9.69 9.33 7.79 7.39 9.28 8.69 9.20 8.98 9.92

Note: These are preliminary data and are subject to further revision.

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
TABLE IV-A. Third Quarter 2002, FDIC-Insured Commercial Banks

Asset Size Distribution Geographic Distribution by Region

THIRD QUARTER Preliminary 

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

Number of institutions reporting........................... 7,933 4,285 3,249 319 80 628 1,378 1,690 2,063 1,310 864

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

Total deposits (in billions)....................................

Net income (in millions).......................................

$6,932.5 $216.8 $855.5 $917.0 $4,943.2 $2,351.2 $1,717.8 $1,424.0 $384.8 $288.0 $766.6 

4,541.1 182.2 695.6 631.0 3,032.3 1,449.8 1,169.8 902.7 254.8 233.4 530.6

23,409 610 2,778 3,770 16,251 6,239 6,061 4,840 1,627 978 3,665

% ofunprofitable institutions.............................. 6.1 9.0 2.6 3.8 5.0 9.4 8.8 5.5 3.3 4.5 9.8

% of institutions withearnings gains..................... 72.1 67.6 77.7 77.4 70.0 70.9 75.8 73.7 70.0 70.6 71.6

Performance Ratios (annualized, %)

Yield on earning assets....................................... 6.20 6.77 6.73 6.24 6.06 6.02 6.16 5.95 7.34 6.39 6.58

Cost of fundingearning assets........................... 2.12 2.34 2.26 2.05 2.10 2.40 2.06 2.11 2.15 1.86 1.58

Net interest margin.......................................... 4.07 4.43 4.47 4.19 3.96 3.63 4.11 3.84 5.19 4.52 5.00

Noninterest income toearning assets.................. 2.98 1.16 1.59 3.13 3.30 3.76 2.61 2.21 3.31 1.66 3.33

Noninterest expense to earning assets.................. 3.99 3.71 3.69 4.08 4.04 4.34 3.91 3.32 4.55 3.91 4.13

Loan and lease loss provision to assets............... 0.75 0.31 0.38 0.61 0.85 1.00 0.46 0.58 1.17 0.32 0.86

Net operating incometo assets........................... 1.28 1.09 1.28 1.60 1.22 0.98 1.35 1.24 1.66 1.26 1.92

Pretax return on assets................................. 2.05 1.47 1.84 2.57 2.01 1.66 2.05 2.03 2.47 1.90 3.11

Return on assets............................................. 1.37 1.14 1.32 1.67 1.34 1.07 1.44 1.38 1.71 1.38 1.96

Return on equity................................................ 14.88 10.14 13.35 16.17 15.16 12.42 15.09 16.11 16.50 13.74 18.39

Net charge-offs to loansand leases..................... 1.15 0.33 0.39 1.05 1.36 1.82 0.70 0.84 1.25 0.42 1.31

Loan and lease loss provision to net charge-offs...... 110.34 152.36 149.75 94.36 110.09 111.04 107.32 106.41 134.44 129.75 101.49

Efficiency ratio................................................ 55.20 66.06 60.56 54.77 54.03 57.62 56.77 52.92 52.03 62.58 48.80

Structural Changes (QTR)

New charters................................................ 23 23 0 0 0 1 10 0 2 2 8

Banks absorbed by mergers.............................. 58 28 23 6 1 6 7 16 16 7 6

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

PRIOR THIRD QUARTERS

(The way it was...)

Return on assets (%)... ..................................2001 1.08 0.95 1.23 1.31 1.01 1.10 0.78 1.00 1.53 1.21 1.58

.................................................1999 1.41 1.11 1.32 1.57 1.41 1.46 1.37 1.25 1.40 1.26 1.74

.................................................1997 1.22 1.31 1.43 1.40 1.11 1.09 1.32 1.28 1.32 1.23 1.32

Net charge-offs to loans & leases (%)

.................................................2001 0.96 0.34 0.41 0.97 1.10 1.04 0.98 0.86 0.79 0.44 1.19

.................................................1999 0.58 0.23 0.35 0.70 0.63 0.78 0.41 0.33 0.80 0.44 0.85

.................................................1997 0.66 0.26 0.34 1.10 0.62 0.74 0.47 0.54 0.90 0.39 0.86

Note: These are preliminary data and are subject to further revision.

Less $100 Million $1 Billion Greater East West

All than $100 to to than $10 North- South- Mid- South-
TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks

Asset Size Distribution Geographical Distribution by Region

Less $100 Million $1 Billion Greater East West

September 30, 2002 All than $100 to to than $10 North- South- Mid- SouthPercent of Loans 30-89 Days Past Due

Institutions Million $1 Billion $10 Billion Billion east east Central west west West

All loans secured by real estate........................... 1.03 1.31 0.94 0.89 1.08 1.14 0.90 1.31 0.83 1.04 0.78

Construction and development........................... 1.03 1.31 0.96 1.00 1.06 1.15 0.62 1.42 1.02 1.26 1.20

Commercial real estate.................................... 0.70 1.03 0.72 0.74 0.64 0.76 0.55 0.94 0.78 0.75 0.53

Multifamily residential real estate........................ 0.40 0.62 0.56 0.40 0.34 0.31 0.27 0.67 0.30 0.54 0.25

Home equity loans.......................................... 0.61 0.67 0.53 0.54 0.62 0.53 0.59 0.69 0.57 0.58 0.57

Other 1-4 Family residential.............................. 1.35 1.70 1.29 1.13 1.38 1.35 1.30 1.79 0.90 1.28 0.94

Commercial and industrial loans........................... 0.91 1.77 1.32 1.39 0.75 0.81 0.62 1.10 1.43 1.31 1.09

Loans to individuals.......................................... 2.19 2.46 2.30 2.02 2.20 2.35 2.20 1.84 2.55 1.91 1.89

Credit card loans............................................. 2.76 2.54 4.87 2.73 2.70 2.82 4.18 2.15 2.92 1.40 2.12

Other loans to individuals................................. 1.83 2.46 1.94 1.68 1.81 1.89 1.87 1.79 1.79 1.92 1.54

All other loans and leases (including farm)............ 0.56 0.82 0.75 0.76 0.51 0.49 0.28 0.79 0.86 0.89 0.52

Total loans and leases....................................... 1.14 1.46 1.13 1.17 1.12 1.24 0.94 1.25 1.36 1.20 1.01

Memo: Commercial RE loans not secured by RE...... 0.85 0.22 0.47 0.64 0.90 0.64 0.34 1.30 2.01 0.66 1.28

Percent of Loans Noncurrent*

All real estate loans.......................................... 0.93 1.03 0.87 0.87 0.96 1.04 0.74 1.34 0.69 0.92 0.62

Construction and development........................... 1.09 1.08 1.10 1.13 1.07 1.12 0.91 1.40 0.85 0.83 1.18

Commercial real estate.................................... 0.96 1.13 0.95 0.89 0.97 0.86 0.81 1.32 0.96 1.04 0.76

Multifamily residential real estate........................ 0.39 0.74 0.45 0.25 0.40 0.23 0.46 0.53 0.40 0.65 0.18

Home equity loans.......................................... 0.30 0.31 0.26 0.31 0.31 0.23 0.25 0.42 0.29 0.47 0.25

Other 1-4 Family residential.............................. 0.97 0.90 0.78 0.90 1.03 1.04 0.76 1.69 0.48 0.80 0.40

Commercial and industrial loans........................... 3.01 1.73 1.55 1.90 3.43 4.19 2.68 2.58 1.51 1.59 2.23

Loans to individuals.......................................... 1.45 0.98 0.98 1.01 1.59 2.03 0.87 0.68 1.82 0.72 1.24

Credit card loans............................................. 2.14 1.36 3.56 1.84 2.14 2.26 2.43 1.41 2.30 0.98 1.79

Other loans to individuals................................. 1.01 0.97 0.63 0.61 1.16 1.81 0.60 0.56 0.85 0.71 0.39

All other loans and leases (including farm)............ 1.03 1.27 1.19 0.81 1.03 1.26 0.90 0.75 1.06 1.56 1.01

Total loans and leases....................................... 1.50 1.17 1.02 1.10 1.69 2.14 1.19 1.47 1.15 1.08 1.07

Memo: Commercial RE loans not secured by RE...... 0.83 0.77 0.26 0.51 0.89 0.56 1.20 0.97 1.52 0.71 0.34

Percent of Loans Charged-off (net, YTD)

All real estate loans.......................................... 0.15 0.09 0.08 0.15 0.17 0.10 0.12 0.29 0.07 0.10 0.07

Construction and development........................... 0.16 0.13 0.11 0.23 0.15 0.15 0.11 0.26 0.13 0.06 0.15

Commercial real estate.................................... 0.13 0.12 0.09 0.14 0.15 0.04 0.09 0.30 0.10 0.11 0.09

Multifamily residential real estate........................ 0.06 0.05 0.03 0.12 0.05 0.04 0.04 0.11 0.00 0.23 0.02

Home equity loans.......................................... 0.19 0.04 0.04 0.13 0.22 0.05 0.16 0.35 0.11 0.16 0.06

Other 1-4 Family residential.............................. 0.14 0.08 0.07 0.13 0.16 0.08 0.14 0.30 0.05 0.09 0.04

Commercial and industrial loans........................... 1.75 0.66 0.74 1.34 1.98 2.13 1.69 1.52 0.80 0.72 1.99

Loans to individuals.......................................... 3.40 0.88 1.65 3.15 3.73 4.62 1.59 1.76 4.46 1.01 4.09

Credit card loans............................................. 6.68 3.89 7.69 6.95 6.61 7.60 4.73 4.78 6.55 3.08 5.73

Other loans to individuals................................. 1.40 0.79 0.85 1.08 1.60 1.93 1.10 1.30 0.53 0.95 1.37

All other loans and leases (including farm)............ 0.52 0.23 0.39 0.43 0.55 0.60 0.24 0.66 0.23 0.45 0.64

Total loans and leases....................................... 1.12 0.30 0.38 0.92 1.34 1.77 0.67 0.81 1.30 0.39 1.22

Memo: Commercial RE loans not secured by RE...... 0.11 0.44 0.33 0.20 0.09 0.02 0.17 0.18 -0.02 0.22 0.03

Loans Outstanding (in billions)

All real estate loans.......................................... $1,971.8 $79.7 $378.2 $314.9 $1,199.1 $385.2 $598.9 $479.4 $128.6 $97.7 $282.0

Construction and development........................... 205.9 7.4 47.9 42.4 108.1 21.0 74.8 50.6 11.3 15.2 32.9

Commercial real estate.................................... 541.6 23.9 150.0 116.7 251.1 89.2 163.2 127.7 34.0 37.3 90.2

Multifamily residential real estate........................ 68.8 1.8 13.2 13.6 40.2 15.9 16.5 19.6 3.5 3.0 10.4

Home equity loans.......................................... 201.0 2.3 18.5 22.5 157.7 40.0 60.3 65.8 6.5 1.8 26.6

Other 1-4 Family residential.............................. 882.9 33.9 132.3 114.8 601.8 188.1 273.5 206.0 61.6 36.1 117.6

Commercial and industrial loans........................... 921.6 22.4 94.9 110.6 693.6 303.7 224.7 216.6 42.7 38.1 95.7

Loans to individuals.......................................... 688.2 15.8 55.8 91.1 525.4 281.7 126.3 106.8 68.7 22.0 82.7

Credit card loans............................................. 267.7 0.4 6.8 29.8 230.6 137.7 18.2 14.8 46.0 0.6 50.3

Other loans to individuals................................. 420.5 15.4 49.0 61.3 294.8 144.0 108.1 92.1 22.7 21.3 32.4

All other loans and leases (including farm)............ 491.2 16.2 29.6 38.6 406.8 191.8 100.4 127.0 31.1 10.4 30.6

Total loans and leases....................................... 4,072.8 134.2 558.5 555.3 2,825.0 1,162.3 1,050.3 929.9 271.1 168.1 491.0

Memo: Commercial RE loans not secured by RE...... 39.3 0.3 1.5 3.4 34.1 9.1 12.0 9.3 0.8 0.7 7.3

Memo: Other Real Estate Owned (in millions)

All other real estate owned................................. $3,953.9 $324.2 $1,067.5 $587.3 $1,974.8 $556.3 $1,343.0 $964.5 $323.7 $330.1 $436.4

Construction and development........................... 366.6 32.7 177.1 73.0 83.7 44.1 125.9 62.6 33.0 42.6 58.2

Commercial real estate.................................... 1,755.5 141.2 503.1 319.9 791.3 250.2 681.3 267.3 159.5 164.8 232.2

Multifamily residential real estate........................ 81.5 13.4 39.1 12.8 16.2 11.0 15.1 18.7 13.3 6.5 16.8

1-4 Family residential....................................... 1,560.4 110.4 307.3 170.9 971.9 146.2 506.4 606.7 94.9 96.5 109.7

Farmland...................................................... 84.2 26.5 39.1 8.9 9.7 2.5 14.1 9.1 23.0 19.6 15.8

Other real estate owned in foreign offices............ 105.7 0.0 1.8 1.9 102.0 102.3 0.0 0.0 0.0 0.0 3.5

*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

Note: These are preliminary data and are subject to further revision.
Q Chart 1

Net Operating Income Is Down Slightly from 

Previous Quarter's Record Level

The FDIC

Quarterly Banking Profile

Commercial 

Banking Performance

Third Quarter 2002

Release date: 

November 26,2002

$ Billions

25

20

15

10

5

0

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

1998 1999 2000 2001 2002

Chart 2

Community Bank Margins Improve for 

Second Consecutive Quarter

Net Interest Margin (%)

5.0

4.5

4.0

3.5

Securities andOther 

Gains/Losses, Net

19.4

Net OperatingIncome 23.4 23.4

21.7

19.5 19.3 19.3 19.8

15.9 16.1

18.0 16.9 17.7 17.6 17.4 18.4

15.1 14.7 14.6

Assets < $100 Million 4.43

Assets > $100 Million 4.06

Division ofInsurance 

and Research

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

1998 1999 2000 2001 2002
QThe FDIC

Quarterly Banking Profile

Chart 3

Banks’ Foreign Operations Are Providing 

Less Support To Earnings

Earnings from International Operations, % of Net Income

16

12

Commercial 

Banking Performance

Third Quarter 2002

8

Release date:

November 26, 2002

4

0

1998 1999 2000 2001 2002

Chart 4

Loan Losses Remain Concentrated 

Among Larger Banks

Quarterly Net Charge-off (%)

2.5

2.0

1.5

1.0

0.5

0.0

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Division ofInsurance 

and Research

Assets < $1 Billion

Assets > $1 Billion
QThe FDIC

Quarterly Banking Profile

Commercial 

Banking Performance

Third Quarter 2002

$ Billions

35

30

25

20

Chart 5

Troubled Commercial Loans 

Continue To Increase

Quarterly Net Charge-offs 

Noncurrent Loans

32.5

4.8

27.7

Release date: 

November 26, 2002

15

10 

7.4

5

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

1997 1998 1999 2000 2001 2002

Chart 6

C&I Loans and Credit Cards Account for 

Most of the Industry’s Credit Losses

Third Quarter, 2002

All Other

5.1% C&I

41.4%

Other 

Consumer 

13.1%

Credit Cards

34.3%

Real 

Estate 

6.1%

Division ofInsurance 

and Research
Quarterly Noninterest Income of Insured Commercial Banks

(dollar figures in millions)

Noninterest Income Category

Preliminary 

3rd Qtr 2002

Number of

Reporting 

Institutions 3rd Qtr 2001

Number of

Reporting 

Institutions

Amount

% Change 

01:3-02:3

Number

% Change 

01:3-02:3

Income from fiduciary activities $5,119 1,420 $4,941 1,436 3.6 -1.1

Service charges on deposit accounts 7,601 7,751 6,713 7,953 13.2 -2.5

Trading revenues 2,387 149 3,507 155 -31.9 -3.9

On interest-rate contracts 1,231 89 1,568 93 -21.5 -4.3

On foreign exchange contracts 1,031 41 1,546 53 -33.3 -22.6

On equity contracts -172 21 333 21 N/M 0.0

On commodity & other contracts 277 10 80 10 246.3 0.0

Investment banking & other fees 2,073 1,992 2,388 1,974 -13.2 0.9

Venture capital revenue -462 40 -714 44 -35.3 -9.1

Servicing fees 2,347 1,607 3,014 1,629 -22.1 -1.4

Securitization income 5,673 78 4,252 97 33.4 -19.6

Insurance commissions & fees 839 3,593 738 3,620 13.7 -0.7

Net gains/losses on loan sales 2,392 1,696 1,066 1,593 124.4 6.5

Net gains/losses on sales of OREO -34 1,403 -2 1,254 N/M 11.9

Net gains/losses on sales of other assets 540 1,408 462 1,277 16.9 10.3

Other noninterest income 15,170 7,755 12,471 7,917 21.6 -2.0

Total noninterest income $43,647 7,898 $38,838 8,104 12.4 -2.5
Quarterly Banking Profile 

Net Operating Income Is Down Slightly From Previous Quarter's Record 

Level

Report Date Net Operating Income 

(Billions)

Securities and Other 

Gains/Losses, Net (Billions)

March 31, 1998 14.85 1.06

June 30, 1998 15.72 0.37

September 30, 1998 14.67 0.39

December 31, 1998 14.02 0.72

March 31, 1999 17.61 0.35

June 30, 1999 16.86 0.05

September 30, 1999 19.53 -0.15

December 31, 1999 17.65 0.02

March 31, 2000 19.96 -0.46

June 30, 2000 15.50 -0.86

September 30, 2000 20.02 -0.72

December 31, 2000 17.11 0.46

March 31, 2001 19.31 0.50

June 30, 2001 18.55 0.55

September 30, 2001 16.67 0.70

December 31, 2001 17.54 0.87

March 31, 2002 21.37 0.36

June 30, 2002 22.59 0.83

September 30, 2002 21.78 1.63

Last Updated 11/26/2002 
Quarterly Banking Profile 

Community Bank Margins Improve For Second Consecutive Quarter

Report Date Assets > $100 Million Assets < $100 Million

March 31, 1998 4.03% 4.58%

June 30, 1998 4.07% 4.61%

September 30, 1998 4.09% 4.61%

December 31, 1998 4.07% 4.49%

March 31, 1999 4.04% 4.32%

June 30, 1999 4.05% 4.43%

September 30, 1999 4.10% 4.49%

December 31, 1999 4.05% 4.56%

March 31, 2000 3.98% 4.53%

June 30, 2000 3.96% 4.62%

September 30, 2000 3.91% 4.54%

December 31, 2000 3.88% 4.46%

March 31, 2001 3.81% 4.29%

June 30, 2001 3.88% 4.26%

September 30, 2001 3.92% 4.25%

December 31, 2001 4.14% 4.26%

March 31, 2002 4.18% 4.26%

June 30, 2002 4.10% 4.40%

September 30, 2002 4.06% 4.43%

Last Updated 11/26/2002 
Quarterly Banking Profile 

Banks' Foreign Operations Are Providing Less Support To Earnings

Report Date Earnings from International Operations, % of Net 

Income

March 31, 1998 11.05%

June 30, 1998 12.72%

September 30, 

1998 3.66%

December 31, 1998 5.82%

March 31, 1999 13.04%

June 30, 1999 9.46%

September 30, 

1999 8.01%

December 31, 1999 8.32%

March 31, 2000 10.74%

June 30, 2000 10.57%

September 30, 

2000 9.40%

December 31, 2000 9.72%

March 31, 2001 11.15%

June 30, 2001 7.82%

September 30, 

2001 12.92%

December 31, 2001 5.35%

March 31, 2002 7.48%

June 30, 2002 8.68%

September 30, 

2002 3.60%

Last Updated 11/26/2002 
Quarterly Banking Profile 

Loan Losses Remain Concentrated Among Larger Banks

Report Date Quarterly Net Charge-off Rate Bank Size

March 31, 1992 1.51% Assets > $1 Billion

March 31, 1992 0.55% Assets < $1 Billion

June 30, 1992 1.43% Assets > $1 Billion

June 30, 1992 0.64% Assets < $1 Billion

September 30, 1992 1.56% Assets > $1 Billion

September 30, 1992 0.69% Assets < $1 Billion

December 31, 1992 1.58% Assets > $1 Billion

December 31, 1992 0.96% Assets < $1 Billion

March 31, 1993 1.03% Assets > $1 Billion

March 31, 1993 0.39% Assets < $1 Billion

June 30, 1993 1.05% Assets > $1 Billion

June 30, 1993 0.49% Assets < $1 Billion

September 30, 1993 0.86% Assets > $1 Billion

September 30, 1993 0.44% Assets < $1 Billion

December 31, 1993 1.04% Assets > $1 Billion

December 31, 1993 0.61% Assets < $1 Billion

March 31, 1994 0.57% Assets > $1 Billion

March 31, 1994 0.23% Assets < $1 Billion

June 30, 1994 0.65% Assets > $1 Billion

June 30, 1994 0.33% Assets < $1 Billion

September 30, 1994 0.48% Assets > $1 Billion

September 30, 1994 0.31% Assets < $1 Billion

December 31, 1994 0.57% Assets > $1 Billion

December 31, 1994 0.47% Assets < $1 Billion

March 31, 1995 0.42% Assets > $1 Billion

March 31, 1995 0.26% Assets < $1 Billion

June 30, 1995 0.49% Assets > $1 Billion

June 30, 1995 0.32% Assets < $1 Billion

September 30, 1995 0.57% Assets > $1 Billion

September 30, 1995 0.32% Assets < $1 Billion

December 31, 1995 0.66% Assets > $1 Billion

December 31, 1995 0.48% Assets < $1 Billion

March 31, 1996 0.62% Assets > $1 Billion

March 31, 1996 0.29% Assets < $1 Billion

June 30, 1996 0.63% Assets > $1 Billion

June 30, 1996 0.35% Assets < $1 Billion

September 30, 1996 0.61% Assets > $1 Billion

September 30, 1996 0.35% Assets < $1 Billion

December 31, 1996 0.67% Assets > $1 Billion

December 31, 1996 0.52% Assets < $1 Billion

March 31, 1997 0.65% Assets > $1 Billion
March 31, 1997 0.30% Assets < $1 Billion

June 30, 1997 0.70% Assets > $1 Billion

June 30, 1997 0.34% Assets < $1 Billion

September 30, 1997 0.75% Assets > $1 Billion

September 30, 1997 0.32% Assets < $1 Billion

December 31, 1997 0.75% Assets > $1 Billion

December 31, 1997 0.47% Assets < $1 Billion

March 31, 1998 0.71% Assets > $1 Billion

March 31, 1998 0.25% Assets < $1 Billion

June 30, 1998 0.70% Assets > $1 Billion

June 30, 1998 0.32% Assets < $1 Billion

September 30, 1998 0.80% Assets > $1 Billion

September 30, 1998 0.33% Assets < $1 Billion

December 31, 1998 0.77% Assets > $1 Billion

December 31, 1998 0.54% Assets < $1 Billion

March 31, 1999 0.68% Assets > $1 Billion

March 31, 1999 0.30% Assets < $1 Billion

June 30, 1999 0.61% Assets > $1 Billion

June 30, 1999 0.31% Assets < $1 Billion

September 30, 1999 0.64% Assets > $1 Billion

September 30, 1999 0.32% Assets < $1 Billion

December 31, 1999 0.76% Assets > $1 Billion

December 31, 1999 0.47% Assets < $1 Billion

March 31, 2000 0.63% Assets > $1 Billion

March 31, 2000 0.28% Assets < $1 Billion

June 30, 2000 0.64% Assets > $1 Billion

June 30, 2000 0.32% Assets < $1 Billion

September 30, 2000 0.66% Assets > $1 Billion

September 30, 2000 0.34% Assets < $1 Billion

December 31, 2000 1.03% Assets > $1 Billion

December 31, 2000 0.46% Assets < $1 Billion

March 31, 2001 0.82% Assets > $1 Billion

March 31, 2001 0.27% Assets < $1 Billion

June 30, 2001 0.92% Assets > $1 Billion

June 30, 2001 0.35% Assets < $1 Billion

September 30, 2001 1.08% Assets > $1 Billion

September 30, 2001 0.39% Assets < $1 Billion

December 31, 2001 1.47% Assets > $1 Billion

December 31, 2001 0.60% Assets < $1 Billion

March 31, 2002 1.30% Assets > $1 Billion

March 31, 2002 0.32% Assets < $1 Billion

June 30, 2002 1.22% Assets > $1 Billion

June 30, 2002 0.39% Assets < $1 Billion

September 30, 2002 1.31% Assets > $1 Billion

September 30, 2002 0.38% Assets < $1 Billion
Quarterly Banking Profile 

Troubled Commercial Loans Continue To Increase

Report Date Quarterly Net Charge-offs 

(Billions)

Noncurrent Loans 

(Billions)

March 31, 1997 0.3 7.1

June 30, 1997 0.4 7.2

September 30, 

1997 0.6 7.1

December 31, 

1997 0.7 6.8

March 31, 1998 0.6 7.9

June 30, 1998 0.7 8.0

September 30, 

1998 0.9 8.4

December 31, 

1998 1.4 8.9

March 31, 1999 1.0 10.2

June 30, 1999 1.3 10.4

September 30, 

1999 1.3 11.5

December 31, 

1999 1.9 11.4

March 31, 2000 1.3 12.8

June 30, 2000 1.8 14.6

September 30, 

2000 1.8 15.9

December 31, 

2000 3.4 17.5

March 31, 2001 2.4 19.0

June 30, 2001 3.1 20.9

September 30, 

2001 3.3 22.0

December 31, 

2001 6.0 23.7

March 31, 2002 3.5 25.3

June 30, 2002 4.2 26.9

September 30, 

2002 4.8 27.7


Quarterly Banking Profile 

C&I Loans and Credit Cards Account For Most Of The Industry's Credit 

Losses

Report Date Composition of Commercial Bank 

Net Charge-offs

Percent of Total Net 

Charge-offs

September 30, 2002 C&I 41.3%

September 30, 2002 Real Estate 6.1%

September 30, 2002 Credit Cards 33.9%

September 30, 2002 Other Consumer 13.2%

September 30, 2002 All Other 5.5%

Last Updated 11/26/2002