Donald E. Powell, Chairman 

Fourth Quarter 2001 

Division of Research 

& Statistics 

Don Inscoe 

Associate Director 

Statistics Branch 

(202) 898-3940 

Kevin Brown 

(202) 898-6817 

Tim Critchfield 

(202) 898-8557 

Ross Waldrop 

(202) 898-3951 

Jim McFadyen 

1946–2002 

COMMERCIAL BANK PERFORMANCE — FOURTH QUARTER 2001 

n Best Fourth Quarter Ever Helps Full-Year Earnings To Record Level 

n Lower Interest Rates Boost Securities Gains, Net Interest Income 

n Rising Loss Provisions Mirror Declining Asset Quality Indicators 

n Number And Assets Of “Problem” Banks Surge During The Quarter 

n Deposit Growth Picks Up Momentum, As Loan Growth Continues To Slow 

Benefits of Lower Interest Rates 

Outweigh Credit-Quality Problems 

Insured commercial banks registered their best fourth 

quarter earnings ever, reporting $18.7 billion in net 

income in the final quarter of 2001, an increase of $993 

million (5.6 percent) from the fourth quarter of 2000. 

Key factors in the improvement in industry earnings 

included sharply lower funding costs and higher gains 

on sales of securities and other assets. The increase in 

profits was limited by rising provisions for loan losses 

and lackluster growth in noninterest revenues. More 

than half of all commercial banks — 58.4 percent — 

reported higher earnings than in the fourth quarter of 

2000, and slightly over half — 51.3 percent — reported 

higher quarterly returns on assets (ROAs). The average 

ROA for the fourth quarter was 1.13 percent, down from 

1.15 percent a year earlier. Full-year earnings of $74.3 

billion easily eclipsed the previous record of $71.1 billion, set in 1999. Compared to 2000, 56.7 percent of all 

banks reported higher annual earnings in 2001. 

BANK EARNINGS FINISH THE YEAR ON A 

STRONG NOTE $ Billions 

25 

Securities and Other Gains/Losses, Net 

Net Operating Income 19.4 19.5 19.2 20 18.0 17.7 17.7 16.9 15.9 16.1 14.6 15.0 14.8 15 14.5 14.6 14.7 15.3 

10 

5 

0 

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

1997 1998 1999 2000 

19.9 19.2 18.7 

17.3 

1 2 3 4 

2001 

INDUSTRY ROA SURPASSES ONE PERCENT 

FOR NINTH CONSECUTIVE YEAR 

ROA (%) ROE (%) 

1.5 

1.0 

0.5 

0.0 

Return on Equity (ROE) 

20 

15 

10 

Return on Assets (ROA) 5 

0 

'35 '40 '45 '50 '55 '60 '65 '70 '75 '80 '85 '90 '95 '01 

Steeper Yield Curve Helps Net Interest

Margins at Larger Banks 

As was the case through much of 2001, lower interest 

rates continued to boost the values of banks’ fixed-rate 

securities in the fourth quarter. Sales of securities yielded gains totaling $1.2 billion in the fourth quarter, compared to $207 million in gains a year earlier. Lower 

interest rates also helped produce a $26.1-billion (43.0-

percent) decline in total interest expense from the fourth 

quarter of 2000, which contributed to a $6.3-billion (12.2 

percent) improvement in net interest income. The 

improvement in net interest income was concentrated 

among large banks. The industry’s average net interest 

margin rose to 4.15 percent in the fourth quarter, from 

3.93 percent in the third quarter and 3.90 percent in the 

fourth quarter of 2000. Community banks were not a 

part of this trend, however. The average margin at 

banks with less than $100 million in assets did not 

improve; at 4.26 percent, it was unchanged from the 

third quarter, and was 20 basis points below the level of 

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. 
MARGINS IMPROVE IN FOURTH QUARTER 

Net Interest Margin (%) 

5.0 

4.5 

4.0 

3.5 

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

Assets < $1 Billion 4.40 

Assets > $1 Billion 4.10 

1997 1998 1999 2000 2001 

Rising Loss Provisions, Slowing

Noninterest Income Limit Earnings Gains 

Not all income and expense trends were favorable. Loss 

provisions soared to a 14-year high as asset-quality problems continued to mount. Banks set aside $15.2 billion in 

provisions for loan losses in the fourth quarter, an increase 

of $5.0 billion (48.8 percent) from a year earlier. It was the 

industry’s largest quarterly loss provision since the second 

quarter of 1987. A slowing rate of growth in noninterest revenues also limited the improvement in bank earnings. 

Noninterest income was only $368 million (0.9 percent) higher than in the fourth quarter of 2000. Noninterest income 

provided 41.0 percent of banks’ net operating revenue (net 

interest income plus noninterest income) in the fourth quarter, compared to 43.6 percent a year earlier. Net income 

from banks’ overseas operations fell below $1 billion for the 

first quarter since the fourth quarter of 1998. Income from 

international operations totaled $988 million, compared to 

$1.7 billion in the fourth quarter of 2000. The quarterly loanloss provision for international operations rose to $1.5 billion, 

from $569 million a year ago. 

Nonrecurring Gains Help Deliver New

Annual Earnings Record 

After a slight dip in 2000, full-year earnings returned to 

record levels in 2001. For the ninth consecutive year, the 

industry’s ROA surpassed the 1-percent benchmark level. 

In an environment of falling short-term interest rates and an 

unfolding recession, the industry’s record earnings in 2001 

were made possible by $4.5 billion in gains on sales of securities. Net operating income, which excludes these gains 

and other nonrecurring items, was $1.1 billion (1.5 percent) 

lower than in 2000. Industry profits also received a boost 

from an $11.2-billion (5.5-percent) increase in net interest 

income. Noninterest expenses increased by only 2.9 percent from the previous year, the smallest annual increase 

since 1942. However, noninterest income growth was also 

modest; banks reported $157.2 billion in noninterest revenues in 2001, a $3.7-billion (2.4-percent) improvement over 

2000. Loan-loss provisions registered their largest annual 

increase in 12 years, increasing to $43.1 billion from $30.0 

billion in 2000. The average ROA of 1.16 percent was down 

from 1.19 percent in 2000. More than half — 56.8 percent 

— of all commercial banks reported higher net income in 

2001, but only 42.1 percent reported higher ROAs. 

NONCURRENT RATES ROSE FOR MOST 

LOAN CATEGORIES IN 2001 

Percent of Loans 

1985 1987 1989 1991 1993 1995 1997 1999 2001 0 

1 

2 

3 

4 

5 

6 

7 

Total Real Estate 

Commercial 

and Industrial 

Loans to Individuals 

All Other Loans 

Large Banks’ Commercial Loans, Credit

Cards Lead Rise in Troubled Credits 

Asset-quality indicators continued to worsen in the fourth 

quarter. Net charge-offs of $12.7 billion were up by $3.9 billion (44.2 percent) from a year ago, and represent the highest quarterly total ever reported by the industry. Charge-offs 

of commercial and industrial (C&I) loans totaled $6.0 billion, 

accounting for 47.3 percent of all loans and leases chargedoff in the fourth quarter. C&I charge-offs were $2.6 billion 

(77.1 percent) higher than in the fourth quarter of 2000. 

Charge-offs of credit-card loans also rose in the fourth quarter. Banks charged-off $3.5 billion in credit-card loans during the quarter, $724 million (25.8 percent) more than a year 

earlier, as the net charge-off rate on the industry’s credit-card 

portfolio rose to a record-high 6.26 percent. Higher chargeoffs were also reported in leases (up $198 million from a 

year earlier), commercial real estate loans (up $191 million), 

construction and development loans (up $74 million), home 

equity loans (up $72 million), and residential mortgage loans 

(up $67 million). As has been the case throughout the past 

two years of declining asset quality, the level of problems 

and the pace of deterioration continue to be significantly 

greater at large banks. During the fourth quarter, the overall 

net charge-off rate on all loans at banks with more than $1 

billion in assets was 1.46 percent, up from 1.03 percent a 

year earlier. At banks with less than $1 billion in assets, the 

net charge-off rate was 0.57 percent, up from 0.45 percent 

in the fourth quarter of 2000. 

C&I LOAN CHARGE-OFFS WERE SHARPLY 

HIGHER IN 2001 

Percent of Loans 

1985 1987 1989 1991 1993 1995 1997 1999 2001 

0.0 

1.0 

2.0 

3.0 

Total Real Estate 

Commercial 

and Industrial 

All Other Loans Loans to Individuals 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 Fourth Quarter 2001 
Rising Charge-offs Fail to Halt Increase in

Noncurrent Loans 

Even with the stepped-up rate of charge-off activity, the level 

of noncurrent loans (loans 90 days or more past due or in 

nonaccrual status) increased by $3.3 billion (6.4 percent) 

during the quarter. During the 12 months ended December 

31, commercial banks’ noncurrent loans increased by $12.1 

billion (28.1 percent). Most of the increase in noncurrent 

loans during both the quarter and the entire year has 

occurred in large banks’ C&I loan portfolios. Total noncurrent C&I loans increased by $1.7 billion (7.6 percent) during 

the fourth quarter, and by $6.1 billion (35.1 percent) for all of 

2001. These increases represent slightly more than 51 percent of the increases in total noncurrent loans for the quarter and the year. The only other loan categories that showed 

sizable increases in noncurrent levels during the quarter 

were consumer loans other than credit cards, where noncurrents increased by $596 million (15.4 percent), and residential mortgage loans, up $671 million (9.4 percent). The 

percentage of loans that were noncurrent at year-end averaged 0.98 percent at banks with less than $1 billion in 

assets, compared to 1.50 percent for banks with more than 

$1 billion in assets. 

C&I Loans Decline Further; MBSs, 

Commercial Real Estate Continue to Grow 

Total assets of commercial banks increased by $13.6 billion 

during the fourth quarter, the smallest increase since industry assets declined in the first quarter of 1999. The small 

increase in assets was caused primarily by the merger of 

two large affiliated banks. The merger produced a reduction 

of roughly $125 billion in assets and liabilities representing 

transactions between the two banks that were netted-out 

when their accounts were consolidated1. Commercial 

banks’ holdings of C&I loans declined for the fourth consecutive quarter, falling by $27.9 billion (2.8 percent). The 

decline was concentrated among large banks; more than 80 

percent of the decline was attributable to 10 banks. More 

than half of all banks (51.4 percent) reported increases in 

their C&I loans during the fourth quarter. Banks’ holdings of 

mortgage-backed securities (MBSs) grew by a record 

amount for the second consecutive quarter, rising by $53.3 

billion, after increasing by $51.6 billion in the third quarter. 

Commercial real estate loans also continued to grow at a 

rapid rate, increasing by $13.8 billion (2.8 percent). 

Domestic Savings Deposits Show

Strong Growth 

On the funding side, domestic savings deposits posted a 

quarterly record increase of $119.4 billion (6.7 percent). 

Domestic demand deposits registered a strong seasonal 

increase of $76.8 billion. Commercial bank borrowings from 

Federal Home Loan Banks rose by $7.1 billion. Deposits in 

foreign offices declined by $51.2 billion, while time deposits 

in domestic offices fell by $47.7 billion. 

Asset Growth Slowed to 9-Year Low 

in 2001 

For the year, asset growth slowed to 5.2 percent, the lowest 

annual rate since 1992. Loans increased by only 2.0 percent in 2001, after growing by 9.4 percent in 2000. C&I 

loans had a net decline for the first year since 1992, falling 

by $68.6 billion (6.5 percent). Banks continued to reduce 

their holdings of U.S. Treasury securities, which declined by 

$30.7 billion (40.5 percent). In the past two years, banks 

have reduced their Treasury securities by $68.0 billion (60.1 

percent). In contrast, banks have been accumulating mortgage-backed securities, and the rate of accumulation 

jumped sharply in 2001. MBS portfolios increased by 

$142.3 billion (30.2 percent) during 2001, after rising by 

$16.8 billion (3.7 percent) in 2000. 

Reserve Growth Keeps Pace With Growth

in Noncurrent Loans 

Banks increased their loss reserves by $3.9 billion (5.7 percent) in the fourth quarter, lifting the industry’s reserves-toloans ratio from 1.77 percent to 1.85 percent. However, the 

continued strong growth in noncurrent loans meant that the 

industry’s “coverage ratio” remained unchanged from the 

end of the third quarter, at $1.32 in reserves for every $1.00 

of noncurrent loans. Before the fourth quarter, the coverage 

ratio had declined for 7 consecutive quarters. 

Intangible Assets Lift Equity Capital 

Equity capital increased by $11.5 billion (1.9 percent) during 

the quarter, and the industry’s equity-capital-to-assets ratio 

rose from 8.93 percent to 9.09 percent. Most of the increase 

in equity consisted of goodwill and other intangible assets. 

The industry’s leverage capital ratio, which excludes intangibles, declined by one basis point during the quarter, from 

7.81 percent to 7.80 percent. 

“Problem” Banks Register Sharp Increase 

The number of insured commercial banks reporting financial 

results declined from 8,149 to 8,080 during the quarter. 

There were 42 new banks added during the quarter, while 

108 were absorbed by mergers. No commercial banks 

failed during the fourth quarter. However, the number of 

commercial banks on the FDIC’s “Problem List” increased 

from 74 to 95, and total problem bank assets rose from 

$14.4 billion to $36.1 billion. This is the largest quarterly 

increase in problem banks since the third quarter of 1991, 

and the largest increase in problem-bank assets since the 

fourth quarter of 1991. 

1The Chase Manhattan Bank and Morgan Guaranty Trust Co., 

both subsidiaries of J.P. Morgan Chase & Co., merged during the 

fourth quarter to form JPMorgan Chase Bank. 

MERGER, CHARTER ACTIVITY DROPPED OFF 

IN 2001 Number of Banks 

1987 1989 1991 1993 1995 1997 1999 2001 

0 

100 

200 

300 

400 

500 

600 

700 

Failures 

Mergers 

New Charters 

FDIC Quarterly Banking Profile 

Fourth Quarter 2001 3 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

2001 2000 1999 1998 1997 1996 1995 

Return on assets (%)............................................. 1.16 1.19 1.31 1.19 1.23 1.19 1.17 

Return on equity (%)............................................. 13.10 14.02 15.31 13.93 14.68 14.45 14.66 

Core capital (leverage) ratio (%).............................. 7.79 7.70 7.79 7.54 7.56 7.64 7.61 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.92 0.74 0.63 0.65 0.66 0.75 0.85 

Net charge-offs to loans (%).................................... 0.94 0.67 0.61 0.67 0.64 0.58 0.49 

Asset growth rate (%)............................................. 5.20 8.88 5.38 8.53 9.54 6.16 7.53 

Net interest margin (%).......................................... 3.90 3.95 4.07 4.07 4.21 4.27 4.29 

Net operating income growth (%).............................. -1.54 1.80 20.40 2.24 12.46 6.43 7.48 

Number of institutions reporting................................. 8,080 8,315 8,579 8,773 9,142 9,527 9,940 

Percentage of unprofitable institutions (%).................. 7.54 7.34 7.51 6.11 4.85 4.28 3.55 

Number of problem institutions................................. 95 76 66 69 71 82 144 

Assets of problem institutions (in billions).................. $36 $17 $4 $5 $5 $5 $17 

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

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

(dollar figures in millions) 

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

Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

2001 2001 2000 00:4-01:4 

8,080 8,149 8,315 -2.8 

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

CONDITION DATA

1,704,931 1,671,162 1,670,857 2.0 

 Total assets..................................................................... $6,569,240 $6,555,671 $6,244,622 5.2

 Loans secured by real estate............................................. 1,803,587 1,749,213 1,673,185 7.8

 Commercial & industrial loans.......................................... 982,480 1,010,372 1,051,060 -6.5

 Loans to individuals......................................................... 631,160 607,557 606,664 4.0

 Farm loans..................................................................... 47,762 48,280 48,099 -0.7

 Other loans & leases...................................................... 433,476 448,059 443,469 -2.3

 Less: Unearned income................................................... 3,110 2,665 2,931 6.1

 Total loans & leases......................................................... 3,895,355 3,860,817 3,819,547 2.0

 Less: Reserve for losses................................................... 72,110 68,215 64,137 12.4

 Net loans and leases......................................................... 3,823,246 3,792,601 3,755,409 1.8

 Securities........................................................................ 1,179,562 1,106,817 1,078,981 9.3

 Other real estate owned...................................................... 3,568 3,457 2,912 22.5

 Goodwill and other intangibles............................................. 122,415 111,689 103,781 18.0

 All other assets............................................................... 1,440,449 1,541,107 1,303,538 10.5 

Total liabilities and capital................................................... 6,569,240 6,555,671 6,244,622 5.2

 Noninterest-bearing deposits............................................. 873,671 777,646 756,561 15.5

 Interest-bearing deposits..................................................... 3,517,952 3,517,030 3,423,073 2.8

 Other borrowed funds......................................................... 1,129,752 1,167,113 1,108,777 1.9

 Subordinated debt............................................................ 95,317 92,442 87,043 9.5

 All other liabilities............................................................... 355,092 415,440 338,436 4.9

 Equity capital.................................................................. 597,457 585,999 530,731 12.6 

Loans and leases 30-89 days past due.................................... 53,294 52,561 47,953 11.1 

Noncurrent loans and leases................................................ 55,028 51,697 42,941 28.1 

Restructured loans and leases............................................. 1,030 1,063 1,312 -21.5 

Direct and indirect investments in real estate........................... 265 253 297 -10.9 

1-4 Family residential mortgages.......................................... 966,299 931,451 917,657 5.3 

Mortgage-backed securities................................................... 613,586 560,254 471,243 30.2 

Earning assets.................................................................. 5,598,734 5,584,869 5,380,269 4.1 

Long-term assets (5+ years)................................................ 1,341,749 1,264,512 1,187,694 13.0 

Volatile liabilities............................................................... 2,061,424 2,180,294 2,184,056 -5.6 

Foreign office deposits......................................................... 629,681 680,900 706,666 -10.9 

FHLB Advances (Source: FHFB, Call Reports)........................ 198,620 191,550 174,742 13.7 

Unused loan commitments................................................... 4,872,474 4,763,651 4,469,121 9.0 

Derivatives........................................................................ 45,518,038 50,324,021 40,760,447 11.7 

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 Preliminary 

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

2001 2000 %Change 2001 2000 00:4-01:4 

$402,915 $428,449 -6.0 $92,746 $112,504 -17.6 

187,713 224,488 -16.4 34,558 60,636 -43.0

215,202 203,962 5.5 58,188 51,868 12.2 

43,074 30,001 43.6 15,195 10,211 48.8 

157,172 153,452 2.4 40,450 40,082 0.9 

222,316 216,105 2.9 57,608 55,431 3.9 

4,478 -2,283 N/M 1,210 207 484.8 

36,904 37,983 -2.8 8,392 8,790 -4.5 

-248 -32 N/M 19 -46 N/M

74,310 71,009 4.7 18,672 17,679 5.6 

36,459 24,785 47.1 12,725 8,824 44.2 

54,085 53,844 0.5 15,070 18,636 -19.1

71,480 72,598 -1.5 17,803 17,217 3.4 

N/M - Not meaningful 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 Fourth Quarter 2001 
TABLE III-A. Full Year 2001, FDIC-Insured Commercial Banks 

FULL YEAR Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

8,080 4,486 3,194 320 80 651 1,392 1,721 2,094 1,342 880 

Total assets (in billions)....................................... $6,569.2 $221.6 $819.4 $915.4 $4,612.8 $2,259.3 $1,634.0 $1,321.6 $363.2 $276.7 $714.4 

Total deposits (in billions).................................... 4,391.6 187.7 668.4 625.0 2,910.5 1,432.7 1,127.4 860.7 253.9 226.1 491.0 

Net income (in millions)....................................... 74,310 1,912 9,322 11,518 51,559 23,703 18,268 13,284 5,012 3,098 10,945 

% of unprofitable institutions................................. 7.5 11.2 3.0 3.1 1.3 10.6 12.3 5.6 4.2 5.4 12.7 

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

Performance ratios (%) 

56.7 49.5 65.5 69.1 62.5 66.4 56.0 60.4 55.2 50.6 56.7 

Yield on earning assets....................................... 7.29 7.83 7.90 7.76 7.06 6.96 7.20 7.31 8.03 7.62 8.05 

Cost of funding earning assets.............................. 3.40 3.61 3.54 3.45 3.35 3.50 3.31 3.52 3.52 3.21 3.06 

Net interest margin............................................. 3.90 4.23 4.37 4.31 3.71 3.46 3.89 3.79 4.52 4.41 4.99 

Noninterest income to earning assets..................... 2.85 1.11 1.71 2.62 3.19 3.66 2.45 2.05 2.88 1.58 3.22 

Noninterest expense to earning assets.................. 4.03 3.74 3.87 4.02 4.07 4.36 3.87 3.40 4.33 3.90 4.44 

Loan and lease loss provision to assets.................. 0.67 0.30 0.37 0.66 0.74 0.74 0.51 0.73 0.66 0.33 0.87 

Net operating income to assets.............................. 1.11 0.89 1.16 1.26 1.08 1.01 1.09 0.99 1.46 1.11 1.56 

Pretax return on assets.............................. 1.73 1.19 1.69 2.02 1.71 1.61 1.67 1.51 2.17 1.63 2.51 

Return on assets................................................ 1.16 0.91 1.20 1.31 1.13 1.05 1.13 1.04 1.49 1.17 1.63 

Return on equity................................................ 13.10 8.07 12.24 13.77 13.43 12.74 12.22 12.36 16.50 12.16 15.96 

Net charge-offs to loans and leases........................ 0.94 0.34 0.41 1.03 1.06 1.20 0.74 0.80 0.87 0.44 1.24 

Loan and lease loss provision to net charge-offs...... 118.14 147.62 139.23 101.73 119.45 120.77 105.38 133.67 112.69 125.27 110.74 

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

Condition Ratios (%) 

57.72 69.59 62.84 55.75 56.83 59.37 58.65 56.08 57.60 63.34 52.11 

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

Loss allowance to: 

85.23 91.39 91.15 89.49 83.03 82.09 84.28 88.11 90.42 89.41 87.71 

Loans and leases............................................. 1.85 1.41 1.44 1.79 1.97 2.12 1.61 1.76 1.72 1.42 2.08 

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

Noncurrent assets plus 

131.04 128.12 151.78 167.67 123.46 124.94 125.29 120.55 166.13 135.90 174.25 

other real estate owned to assets........................ 0.92 0.81 0.73 0.73 1.00 0.97 0.88 1.04 0.77 0.72 0.81 

Equity capital ratio............................................. 9.09 10.90 9.68 9.76 8.77 8.60 9.73 8.45 8.93 9.49 10.34 

Core capital (leverage) ratio................................. 7.79 10.63 9.17 8.74 7.23 7.24 7.99 7.60 8.49 8.58 8.82 

Tier 1 risk-based capital ratio................................. 9.90 15.87 12.88 11.83 8.86 9.74 9.76 9.02 11.34 12.56 10.83 

Total risk-based capital ratio................................. 12.72 16.96 14.06 13.77 12.16 12.69 12.64 12.15 13.03 14.10 13.51 

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

Structural Changes 

87.06 71.11 78.51 88.73 89.69 79.26 88.06 99.43 94.46 70.09 89.82 

New Charters................................................ 129 123 5 0 1 18 37 19 14 8 33 

Banks absorbed by mergers.............................. 357 159 164 25 9 36 73 97 60 44 47 

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

PRIOR FULL YEARS

 (The way it was...) 

3 3 0 0 0 1 0 1 0 1 0 

Number of institutions................................2000 8,315 4,837 3,081 314 83 664 1,426 1,792 2,144 1,383 906

 ...............................................1998 8,773 5,408 2,973 321 71 693 1,445 1,904 2,265 1,517 949

 ...............................................1996 9,527 6,203 2,926 325 73 743 1,577 2,109 2,401 1,683 1,014 

Total assets (in billions).............................2000 $6,244.6 $230.9 $773.6 $879.4 $4,360.7 $2,180.8 $1,611.9 $1,072.4 $419.0 $302.3 $658.2

 ................................................1998 5,442.5 252.3 726.8 921.8 3,541.6 1,922.3 1,211.4 889.3 376.5 304.7 738.3

 ................................................1996 4,578.3 280.0 713.5 1,002.4 2,582.5 1,730.7 805.4 716.8 297.2 334.4 693.8 

Return on assets (%)................................2000 1.19 1.00 1.28 1.28 1.16 1.30 1.05 1.03 1.42 0.97 1.38

 ................................................1998 1.19 1.13 1.31 1.52 1.08 1.06 1.30 1.25 1.50 1.13 1.11

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

Net charge-offs to loans & leases (%) 

1.19 1.16 1.28 1.31 1.12 1.10 1.22 1.21 1.43 1.22 1.24 

 ................................................2000 0.67 0.41 0.33 0.70 0.75 0.79 0.61 0.40 0.83 0.43 1.00

 ................................................1998 0.67 0.31 0.40 1.02 0.65 0.91 0.43 0.44 0.74 0.43 0.87

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

Noncurrent assets plus 

0.58 0.27 0.42 0.89 0.52 0.63 0.45 0.44 0.70 0.35 0.79 

OREO to assets (%)..............................2000 0.74 0.67 0.61 0.64 0.79 0.74 0.82 0.74 0.61 0.62 0.73

 ................................................1998 0.65 0.71 0.62 0.71 0.64 0.78 0.55 0.56 0.57 0.59 0.67

 ................................................1996 0.75 0.77 0.74 0.85 0.71 0.84 0.68 0.57 0.65 0.61 0.88 

Equity capital ratio (%)..............................2000 8.50 11.06 9.59 8.98 8.07 8.00 8.66 7.91 9.49 8.93 9.87

 ................................................1998 8.49 10.95 9.52 9.46 7.85 7.80 9.10 8.27 8.72 8.83 9.29

 ................................................1996 8.20 10.54 9.44 8.77 7.38 7.36 8.48 8.43 8.74 8.74 9.22 

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

Rhode Island, Vermont, U.S. Virgin Islands

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

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

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

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

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

FDIC Quarterly Banking Profile 

Fourth Quarter 2001 5 FDIC-Insured Commercial Banks 
 

 

TABLE IV-A. Fourth Quarter 2001, FDIC-Insured Commercial Banks 

FOURTH QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- South 

west west West 

8,080 4,486 3,194 320 80 651 1,392 1,721 2,094 1,342 880 

Total assets (in billions)....................................... $6,569.2 $221.6 $819.4 $915.4 $4,612.8 $2,259.3 $1,634.0 $1,321.6 $363.2 $276.7 $714.4 

Total deposits (in billions).................................... 4,391.6 187.7 668.4 625.0 2,910.5 1,432.7 1,127.4 860.7 253.9 226.1 491.0 

Net income (in millions)....................................... 18,672 417 2,345 3,025 12,885 4,321 5,811 3,357 1,464 773 2,946 

% of unprofitable institutions................................. 12.8 18.1 5.9 7.5 13.8 13.1 14.6 9.3 11.7 14.1 17.4 

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

Performance Ratios (annualized, %) 

58.4 53.7 64.5 66.3 52.5 61.4 59.5 61.6 58.9 53.3 54.9 

Yield on earning assets....................................... 6.62 7.35 7.37 7.00 6.35 5.98 6.81 6.53 7.94 6.98 7.50 

Cost of funding earning assets.............................. 2.46 3.09 2.93 2.64 2.31 2.30 2.64 2.59 2.80 2.52 2.15 

Net interest margin............................................. 4.15 4.26 4.44 4.36 4.04 3.68 4.16 3.94 5.14 4.46 5.35 

Noninterest income to earning assets..................... 2.89 1.19 1.84 2.76 3.20 3.64 2.71 2.12 2.98 1.63 2.86 

Noninterest expense to earning assets.................. 4.11 3.98 4.01 4.08 4.14 4.36 4.18 3.43 4.39 4.02 4.34 

Loan and lease loss provision to assets................ 0.92 0.39 0.49 0.67 1.07 1.31 0.53 0.85 0.98 0.39 0.90 

Net operating income to assets.............................. 1.08 0.72 1.13 1.30 1.05 0.72 1.31 1.02 1.65 1.02 1.60 

Pretax return on assets................................. 1.64 1.01 1.63 2.11 1.59 1.16 1.90 1.46 2.44 1.63 2.61 

Return on assets................................................ 1.13 0.76 1.16 1.34 1.11 0.75 1.42 1.02 1.68 1.13 1.68 

Return on equity................................................ 12.57 6.88 11.85 13.69 12.81 8.93 14.67 12.04 18.47 11.74 16.23 

Net charge-offs to loans and leases........................ 1.31 0.52 0.59 1.47 1.46 1.95 0.92 0.95 1.36 0.61 1.46 

Loan and lease loss provision to net charge-offs.... 119.42 123.79 129.33 73.34 128.36 133.43 91.55 135.86 106.52 109.89 98.04 

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

Structural Changes (QTR) 

56.36 72.54 62.91 55.41 54.84 57.83 58.10 54.52 53.21 64.37 50.83 

New charters................................................... 37 34 2 0 1 8 13 2 3 2 9 

Banks absorbed by mergers.............................. 107 49 49 6 3 8 31 19 18 13 18 

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

PRIOR FOURTH QUARTERS

 (The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%)................................2000 1.15 0.76 1.18 1.07 1.18 1.32 1.05 0.95 1.38 0.70 1.23

 .................................................1998 1.10 0.83 1.20 1.35 1.04 1.01 1.36 1.09 1.46 0.99 0.80

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

Net charge-offs to loans & leases (%)

1.21 0.97 1.28 1.42 1.14 1.17 1.26 1.28 1.39 1.20 1.12 

 .................................................2000 0.93 0.45 0.46 0.90 1.05 0.92 1.16 0.55 0.92 0.66 1.15

 .................................................1998 0.73 0.48 0.56 1.11 0.67 0.95 0.52 0.57 0.81 0.56 0.81

 .................................................1996 0.64 0.42 0.56 1.01 0.52 0.67 0.53 0.53 0.84 0.48 0.79 

FDIC Quarterly Banking Profile 

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

December 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........................... 1.31 1.56 1.20 1.05 1.41 1.38 1.19 1.65 0.95 1.23 1.07 

Construction and development........................... 1.21 1.64 1.16 1.07 1.26 1.23 0.89 1.45 1.20 1.28 1.49 

Commercial real estate.................................... 0.90 1.17 0.87 0.81 0.94 0.80 0.84 1.24 0.83 0.91 0.65 

Multifamily residential real estate........................ 0.69 0.77 0.61 0.48 0.78 0.51 0.75 1.08 0.40 0.60 0.32 

Home equity loans.......................................... 0.91 0.87 0.82 0.81 0.94 0.68 0.81 1.34 0.64 0.49 0.55 

Other 1-4 Family residential.............................. 1.67 2.01 1.68 1.36 1.71 1.57 1.62 2.10 1.03 1.59 1.48 

Commercial and industrial loans........................... 1.02 1.85 1.38 1.27 0.91 0.91 0.71 1.29 1.40 1.17 1.30 

Loans to individuals............................................. 2.47 2.88 2.60 2.40 2.45 2.70 2.36 2.81 1.77 2.16 2.10 

Credit card loans............................................. 2.69 2.52 5.08 2.76 2.59 3.20 3.25 2.13 1.58 1.70 2.23 

Other loans to individuals................................. 2.34 2.89 2.26 2.19 2.35 2.30 2.15 2.92 2.02 2.17 1.87 

All other loans and leases (including farm)............... 0.84 1.05 0.98 0.92 0.82 0.79 0.45 1.26 0.87 0.96 1.00 

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

Percent of Loans Noncurrent* 

1.02 0.47 0.24 1.02 1.05 0.27 1.44 0.79 2.14 1.38 1.18 

All real estate loans............................................. 0.96 0.97 0.83 0.84 1.04 1.08 0.81 1.26 0.66 0.90 0.74 

Construction and development........................... 1.06 1.03 0.94 1.05 1.13 1.10 1.05 1.05 0.87 0.96 1.20 

Commercial real estate.................................... 0.98 1.14 0.91 0.89 1.04 0.85 0.89 1.32 0.92 0.92 0.79 

Multifamily residential real estate........................ 0.43 0.62 0.50 0.45 0.39 0.26 0.41 0.58 0.47 0.60 0.41 

Home equity loans.......................................... 0.39 0.30 0.34 0.41 0.40 0.29 0.35 0.56 0.28 0.30 0.28 

Other 1-4 Family residential.............................. 0.96 0.88 0.76 0.80 1.06 0.99 0.79 1.49 0.47 0.82 0.56 

Commercial and industrial loans........................... 2.40 1.62 1.35 1.68 2.67 2.82 2.39 2.25 1.22 1.62 2.18 

Loans to individuals............................................. 1.50 1.00 0.97 1.22 1.65 2.07 0.84 1.16 1.68 0.65 1.35 

Credit card loans............................................. 2.15 1.67 3.36 2.05 2.13 2.53 1.47 1.55 2.24 1.05 1.83 

Other loans to individuals................................. 1.12 0.99 0.64 0.72 1.31 1.70 0.69 1.10 0.90 0.63 0.50 

All other loans and leases (including farm)............... 0.96 1.04 0.98 0.74 0.97 0.56 1.70 0.93 1.13 1.18 1.16 

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

Percent of Loans Charged-off (net) 

1.56 0.47 0.08 0.54 1.70 0.26 3.34 0.54 1.01 0.38 0.20 

All real estate loans............................................. 0.19 0.08 0.08 0.13 0.24 0.11 0.27 0.25 0.06 0.07 0.08 

Construction and development........................... 0.13 0.10 0.13 0.18 0.12 0.10 0.13 0.16 0.10 0.06 0.16 

Commercial real estate.................................... 0.13 0.10 0.08 0.11 0.18 0.11 0.14 0.22 0.08 0.07 0.06 

Multifamily residential real estate........................ 0.03 0.12 0.06 0.00 0.03 0.03 0.03 0.09 -0.01 0.04 -0.02 

Home equity loans.......................................... 0.27 0.04 0.09 0.17 0.32 0.06 0.29 0.44 0.16 0.21 0.12 

Other 1-4 Family residential.............................. 0.22 0.07 0.08 0.13 0.29 0.10 0.39 0.27 0.05 0.07 0.05 

Commercial and industrial loans........................... 1.43 0.74 0.80 1.53 1.51 1.54 1.40 1.38 0.76 0.97 1.69 

Loans to individuals............................................. 2.72 0.92 1.63 3.39 2.78 3.25 1.75 1.86 3.30 1.01 3.92 

Credit card loans............................................. 5.12 2.93 6.92 6.72 4.70 5.25 3.62 4.99 6.20 2.68 5.33 

Other loans to individuals................................. 1.28 0.87 0.90 1.23 1.40 1.49 1.18 1.36 0.62 0.95 1.30 

All other loans and leases (including farm)............... 0.41 0.36 0.46 0.53 0.40 0.25 0.31 0.70 0.44 0.38 0.77 

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

Loans Outstanding (in billions) 

0.17 0.82 0.54 0.49 0.12 0.21 0.13 0.25 0.09 0.21 0.10 

All real estate loans............................................. $1,803.6 $79.5 $352.3 $320.2 $1,051.6 $373.6 $538.2 $440.9 $118.0 $90.9 $242.0 

Construction and development........................... 193.2 7.5 43.6 41.9 100.3 20.4 68.5 48.4 10.6 14.1 31.3 

Commercial real estate.................................... 507.6 23.1 134.9 113.2 236.4 83.4 154.4 121.6 31.3 33.8 83.1 

Multifamily residential real estate........................ 64.1 1.8 11.8 14.0 36.5 15.6 15.9 16.7 3.2 2.7 10.1 

Home equity loans.......................................... 154.3 2.2 15.4 19.6 117.1 31.1 49.3 48.9 5.4 1.6 17.9 

Other 1-4 Family residential.............................. 812.0 34.9 132.0 127.0 518.0 188.4 240.2 196.4 56.7 34.7 95.6 

Commercial and industrial loans........................... 982.5 23.3 94.7 113.8 750.7 336.3 245.5 225.4 41.2 37.3 96.7 

Loans to individuals............................................. 631.2 16.9 58.4 98.5 457.4 244.8 126.4 99.0 53.8 22.6 84.6 

Credit card loans............................................. 232.4 0.4 7.0 37.0 188.0 108.3 23.9 13.9 31.3 0.7 54.4 

Other loans to individuals................................. 398.7 16.5 51.4 61.4 269.4 136.5 102.5 85.0 22.5 21.9 30.2 

All other loans and leases (including farm)............... 481.2 15.9 27.7 32.8 404.8 207.0 99.6 106.1 31.0 10.1 27.4 

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

Memo: Other Real Estate Owned (in millions) 

48.6 0.3 1.3 3.6 43.5 11.7 19.8 8.1 1.0 0.7 7.4 

All other real estate owned.................................... $3,568.3 $309.8 $909.2 $537.0 $1,812.3 $592.0 $1,349.1 $686.2 $262.7 $297.2 $381.1 

Construction and development........................... 310.1 29.8 154.9 61.7 63.7 37.8 111.8 47.6 35.6 40.7 36.6 

Commercial real estate.................................... 1,624.2 138.6 388.0 230.2 867.3 263.2 690.4 231.1 100.6 140.9 198.1 

Multifamily residential real estate........................ 64.0 8.7 33.0 7.3 15.1 8.5 14.9 15.8 12.4 4.7 7.6 

1-4 Family residential....................................... 1,377.0 108.8 291.1 231.9 745.2 167.9 516.6 380.6 94.0 89.4 128.6 

Farmland...................................................... 76.4 23.9 40.8 4.6 7.2 1.3 15.4 11.1 20.0 21.6 7.0 

Other real estate owned in foreign offices............ 116.6 0.0 1.4 1.3 113.9 113.3 0.0 0.0 0.0 0.0 3.3 

*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. 

FDIC Quarterly Banking Profile 

Fourth Quarter 2001 7 FDIC-Insured Commercial Banks 
SAVINGS INSTITUTIONS PERFORMANCE—FOURTH QUARTER, 2001 

n Settlement Of A Large Thrift Failure Leads To Record Quarterly Earnings 

n Full-Year Earnings Of $13.3 Billion Sets New Record 

n Net Charge-Offs And Noncurrent Loans Both Increase In The Quarter 

n Failed Thrift Assets During 2001 Are The Highest Since 1993 

Record Earnings Driven by Settlement of 

Failed Thrift 

FDIC-insured savings institutions reported their third 

consecutive quarterly earnings record in the fourth 

quarter, with net income of $3.7 billion, for an 

average return on assets (ROA) of 1.16 percent. 

This was the highest quarterly ROA ever reported by 

the industry. Fourth-quarter earnings included 

proceeds from a settlement reached with the owners 

of a failed thrift plus proceeds from the sale of the 

institution’s branches, which together resulted in 

$514 million in noninterest income. The FDIC 

currently operates this institution as a conservatorship and the losses recognized when the 

institution failed were not included in industry 

earnings this year because they were not carried 

over in the earnings reported by the conservatorship. 

Without the proceeds of this resolution, the industry 

would have reported fourth-quarter earnings of $3.3 

billion, for an ROA of 1.02 percent. 

THREE QUARTERLY RECORDS FOR EARNINGS 

SET THIS YEAR $ Billions 

5 

4 

3 

2 

1 

0 

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 

3.4 3.4 

3.7 

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

Securities and Other Gains/Losses, Net 

Net Operating Income 

1997 1998 1999 2000 2001 

Industry Achieves Highest Annual 

Earnings Ever Reported 

Full-year earnings of $13.3 billion were the highest 

ever reported by the industry. The aggregate ROA of 

1.08 percent was the highest since 1946. Annual 

earnings included the proceeds from the large failed 

thrift resolution, and omitted most of the thrift’s 

losses. Without these distortions, the industry would 

FDIC Quarterly Banking Profile 

have earned a record $12.9 billion for an ROA of 1.05 

percent, which would still register as the highest 

earnings and the best ROA since 1946. Declining 

short-term interest rates resulted in improved net 

interest margins and net interest income growth in 

every quarter of the year. Full-year net interest 

income totaled $36.6 billion which was $4.8 billion 

(15 percent) higher than in 2000. Lower interest 

rates allowed thrifts to sell securities and mortgages 

for gains that amounted to $4.2 billion during the 

year, over 5 times the gains of $799 million realized 

in 2000. Provisions for loan losses were $770 million 

(38 percent) higher this year than last year as the 

industry responded to deteriorating asset quality. 

Fourth-quarter provisions were the lowest of the year, 

but still higher than in any quarter in 2000. Full-year 

earnings were limited by slow growth in noninterest 

income, up $336 million (3 percent), while operating 

expenses rose $3.2 billion (13 percent). A large 

volume of refinancings led to a reduction in mortgage 

servicing rights and lowered noninterest income, 

while operating expenses rose as a result of the 

higher lending activity. Extraordinary losses of $401 

million for the year were primarily the result of losses 

at one large institution that exited an unprofitable 

business line in the fourth quarter. Over half (56 

percent) of all savings institutions reported higher 

earnings this year compared to 2000. 

NET INTEREST MARGIN IMPROVEMENT FINALLY 

ARRIVED FOR SMALL THRIFTS 

Net Interest Margin (%) 

2.5 

3.0 

3.5 

4.0 

3.28 

Assets < $100 Million 

Assets > $100 Million 

3.44 

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

1997 1998 1999 2000 2001 

FDIC-Insured Savings Institutions 8 Fourth Quarter 2001 
Net Interest Margins Improve In All CREDIT CARD LOANS AND COMMERCIAL LOANS 

Regions and All Size Groups DRIVE NET CHARGE-OFF RATES HIGHER 

The industry’s net interest margins responded to a 

yield curve that became steeper during the fourth 

quarter, rising 17 basis point to 3.44 percent. The 

cost of funding earning assets declined by 63 basis 

points, while the yield on earning assets declined by 

46 basis points. Small thrifts, with assets of less than 

$100 million, reported their first increase in margins 

since the middle of last year, up 11 basis points to 

3.28 percent. Most small thrifts rely heavily on 

margins for profitability and the reversal of the decline 

in margins helped lift profitability for most of the 

institutions in this group. 

FEE INCOME GENERATION DRIVES EARNINGS OF 

A FEW SPECIALTY THRIFTS 

Quarterly Noninterest Income, % of Net Operating Revenue 

Percent of Loans 

3.0 

2.0 

1.0 

0.0 

Total Real Estate 

Commercial and Industrial 

Loans to Individuals 

Total Loans 

1991 1993 1995 1997 1999 2001 

Net Charge-offs for the Year Were Almost 

50 

40 

30 

20 

10 

0 

47.5 

Assets < $100 Million 

21.4 

Assets > $100 Million 

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 

Small Thrift Earnings Decline Due to 

Higher Operating Expenses at a Few 

Thrifts 

Profitability of small thrifts, those with assets of less 

than $100 million, declined and the group reported a 

weighted average ROA of 0.44 percent for the fourth 

quarter, down from 0.73 percent in the third quarter 

and 0.63 percent in the fourth quarter of 2000. An 

increase in the proportion of operating expenses to 

Twice as Much as Last Year 

Net charge-offs of $725 million in the fourth quarter 

were the highest since the third quarter of 1994 and 

they lifted the annual total to $2.3 billion, a $762 

million rise (49 percent) over the total for 2000. In the 

fourth quarter, net charge-offs on credit card plans 

accounted for 45 percent of all charge-offs and were 

an annualized 7.72 percent of credit card loans, the 

highest quarterly rate ever reported. The next 

highest quarterly rate for credit cards was reported in 

the third quarter of 1998 when it was an annualized 

6.86 percent. For the full year the net charge-off rate 

on credit card plans was 5.50 percent, up from 3.96 

percent in 2000. Commercial and industrial loan net 

charge-offs declined slightly in the fourth quarter to 

an annualized 1.15 percent from 1.40 percent in the 

third quarter. For the full year charge-offs for this 

category were 1.30 percent, up from 0.87 percent in 

2000. Because the charge-off rate on real estate 

loans rose only 1 basis point to 0.05 percent, total 

charge-offs rose just 8 basis points to 0.28 percent 

for the full year. 

NONCURRENT LOANS RISE DESPITE HIGHER 

CHARGE-OFFS $ Billions Coverage Ratio (%) 

earning assets to 5.34 percent from 4.29 percent led 30 

to the decline in profitability. While net interest 

margins improved, noninterest income did not rise as 24 

fast as operating expenses. This group generates 

almost 48 percent of its net operating revenues from 18 

fees that are a part of noninterest income. There 

were 15 specialty thrifts with less than $100 million in 

assets that generated over 90 percent of their 12 

revenue from fees. Without these institutions the 

remaining thrifts showed improved profitability, 6 

primarily because of wider net interest margins, with 

an ROA of 0.45 percent, up 6 basis points from last 

quarter. 

0 

1 2 3 

1997 

4 1 2 3 

1998 

4 1 2 3 

1999 

4 1 2 3 

2000 

4 1 2 3 

2001 

4 

FDIC Quarterly Banking Profile 

0 

30 

60 

90 

120 

150 

Coverage Ratio (%) 

Noncurrent 

Loans ($) 

Loan Loss Reserves ($) 

Fourth Quarter 2001 9 FDIC-Insured Savings Institutions 
Loan Loss Reserves Declined With Lower 

Provisions in Fourth Quarter 

Loan loss provisions, at $601 million, were almost onethird ($285 million) lower in the fourth quarter 

compared to the third quarter, but provisions for the 

year at $2.8 billion were 38 percent higher than in 

2000. Net charge-offs were $135 million (23 percent) 

higher in the fourth quarter and at $725 million they 

exceeded loan loss provisions for the first time since 

1995. The combination of lower provisions and higher 

net charge-offs drew down loan loss reserves in the 

fourth quarter by $212 million. Noncurrent loans 

increased by $317 million during the quarter despite 

the aggressive charge-offs taken. As a result, the 

coverage ratio — loan loss reserves to noncurrent 

loans — declined to 102 percent from 110 percent last 

quarter. 

Industry Asset Growth Was Strong for 

Fourth Year in a Row 

Industry assets have grown by between 6 and 7 

percent over each of the past four years after two 

years of virtually no growth. The assets of insured 

savings institutions, at $1.3 trillion, grew by $10.3 

billion during the fourth quarter. Home equity loans 

ranked as the fastest growing asset category, rising 30 

percent over the past year and up $1.9 billion in the 

fourth quarter. Credit card plans also showed strong 

growth in the fourth quarter, up $869 million (5 percent) 

to $17.4 billion. Securities increased $9.3 billion to 

$285 billion, but their share of industry assets fell to its 

lowest level at year-end since 1982. U.S. government 

obligations increased by $19.9 billion during the fourth 

quarter, while mortgage backed securities including 

collaterallized mortgage obligations showed a decline. 

Deposit Growth Funded Most 

Asset Growth 

Asset growth was funded primarily with deposits, up 

$8.1 billion in the fourth quarter. Deposits represent 67 

percent of funding, up from a low of 66 percent last 

CAPITAL LEVELS DECLINE 

Ratio (%) 

6 

8 

10 

12 

14 

16 

18 

Core Capital (Leverage) 

Equity to Assets 

Tier 1 Risk Based Capital 

Total Risk-Based Capital 

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

year. This was the first time since 1991 that deposits 

funded a higher share of liabilities. Demand deposits 

declined by $2.3 billion during the quarter, while large 

deposit accounts increased by $5.7 billion. Other 

borrowed funds increased $6.3 billion, but Federal 

Home Loan Bank advances fell $1.3 billion as thrifts 

paid down some of their high cost borrowings. Equity 

capital declined by $1.7 billion primarily because of a 

$2-billion decline in the after-tax value of available-forsale (AFS) securities. Capital was 8.44 percent of 

assets at year-end, down from 8.64 percent at the end 

of the third quarter. Core capital, which does not 

include changes in the value of AFS securities, was 

7.80 percent of assets, down slightly from 7.82 percent 

because of asset growth. 

New Charter Growth Slows 

After three years of strong charter formation, 2001 

ended with only 17 new charters, down from 32 in 

2000. Two of these new charters were issued to 

absorb other charters, leaving just 15 de novo charters 

for the year including 4 that began operations in the 

fourth quarter. There were 6 mergers with other thrifts 

and commercial banks absorbed 12 thrifts by merger 

during the fourth quarter. Another 6 thrifts converted 

their charter to commercial bank charters in the fourth 

quarter. Assets of the 18 thrifts absorbed into the 

commercial banking industry totaled $31 billion. As a 

result of these changes, there were 1,533 savings 

institutions that filed a report for the fourth quarter. 

Other structural changes included 9 mutual to stock 

ownership conversions involving $2.2 billion in assets. 

There were no failures during the fourth quarter, but 

the 1 failed institution in the third quarter involved $2.2 

billion in assets. This was the highest annual total for 

failed thrift assets since 1993, when 10 thrifts with $7.1 

billion in assets failed. The number of “problem” thrifts 

declined to 19 with $3.7 billion in assets from 20 with 

$3.9 billion in assets. Assets of “problem” thrifts were 

at the lowest level since the third quarter of 1998 when 

they were $2.9 billion. 

THE NUMBER OF NEW CHARTERS DROPS BY 

ALMOST HALF 

Number of Thrifts 

350 

300 

250 

200 

150 

100 

50 

0 

Failures 

Mergers 

New Charters 

1995 1996 1997 1998 1999 2000 2001 1989 1991 1993 1995 1997 1999 2001 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Fourth Quarter 2001 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

2001 2000 1999 1998 1997 1996 1995 

Return on assets (%)............................................. 1.08 0.92 1.00 1.01 0.93 0.70 0.77 

Return on equity (%)............................................. 12.73 11.14 11.73 11.35 10.84 8.41 9.40 

Core capital (leverage) ratio (%).............................. 7.80 7.80 7.86 7.85 7.95 7.76 7.80 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.66 0.56 0.58 0.72 0.95 1.09 1.20 

Net charge-offs to loans (%).................................... 0.28 0.20 0.17 0.22 0.25 0.32 0.34 

Asset growth rate (%).......................................... 6.71 5.99 5.52 6.06 -0.28 0.32 1.70 

Net interest margin................................................ 3.23 2.96 3.10 3.10 3.23 3.22 3.09 

Net operating income growth (%)........................... 7.11 3.05 16.62 7.71 19.98 -13.92 13.81 

Number of institutions reporting.............................. 1,533 1,589 1,642 1,690 1,780 1,926 2,030 

Percentage of unprofitable institutions (%)............... 8.22 8.56 8.28 5.27 4.10 12.05 5.86 

Number of problem institutions.............................. 19 18 13 15 12 35 49 

Assets of problem institutions (in billions).................. $4 $7 $6 $6 $2 $7 $14 

Number of failed/assisted institutions........................ 1 1 1 0 0 1 2 

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

(dollar figures in millions) 

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

Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

2001 2001 2000 00:4-01:4 

1,533 1,553 1,589 -3.5 

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

CONDITION DATA

262,438 263,345 243,759 7.7 

 Total assets..................................................................... $1,299,009 $1,288,735 $1,217,345 6.7

 Loans secured by real estate.......................................... 758,394 758,549 722,859 4.9 

1-4 Family Residential................................................... 597,867 597,927 573,044 4.3 

Multifamily residential property....................................... 58,990 58,968 56,574 4.3 

Commercial real estate................................................ 63,140 63,955 58,871 7.3 

Construction, development, and land.............................. 38,397 37,699 34,370 11.7

 Commercial & industrial loans.......................................... 36,754 37,612 33,966 8.2

 Loans to individuals...................................................... 69,421 68,836 65,193 6.5

 Other loans & leases...................................................... 6,971 6,560 5,996 16.3

 Less: Unearned income & contra accounts........................ 163 166 186 -12.3

 Total loans & leases...................................................... 871,377 871,390 827,827 5.3

 Less: Reserve for losses................................................ 7,649 7,862 7,292 4.9

 Net loans & leases......................................................... 863,728 863,529 820,535 5.3

 Securities..................................................................... 285,117 275,848 281,984 1.1

 Other real estate owned................................................... 1,050 1,049 995 5.5

 Goodwill and other intangibles.......................................... 20,675 22,510 16,988 21.7

 All other assets............................................................... 128,439 125,799 96,843 32.6 

Total liabilities and capital................................................... 1,299,009 1,288,735 1,217,345 6.7

 Deposits........................................................................ 797,822 789,754 735,193 8.5

 Other borrowed funds...................................................... 365,411 359,113 358,179 2.0

 Subordinated debt............................................................ 3,910 3,946 3,123 25.2

 All other liabilities............................................................ 22,248 24,567 17,929 24.1

 Equity capital.................................................................. 109,618 111,354 102,921 6.5 

Loans and leases 30-89 days past due................................. 9,508 9,566 8,583 10.8 

Noncurrent loans and leases................................................ 7,474 7,157 5,863 27.5 

Restructured loans and leases............................................. 1,644 1,685 1,392 18.1 

Direct and indirect investments in real estate........................... 423 662 617 -31.4 

Mortgage-backed securities................................................ 196,512 206,678 212,653 -7.6 

Earning assets.................................................................. 1,192,578 1,181,677 1,126,842 5.8 

FHLB Advances (Source: TFR, FHFB, Call Reports)............... 254,271 255,583 261,243 -2.8 

Unused loan commitments................................................ 320,387 299,464 246,840 29.8 

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 Preliminary 

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

2001 2000 %Change 2001 2000 00:4-01:4 

$83,899 $83,780 0.1 $20,146 $22,242 -9.4 

47,312 52,017 -9.1 10,066 14,155 -28.9

36,587 31,762 15.2 10,081 8,087 24.7 

2,802 2,033 37.9 601 576 4.3 

11,721 11,385 3.0 2,886 2,863 0.8 

28,727 25,483 12.7 7,697 6,714 14.7 

4,209 799 426.6 1,447 332 335.2 

7,291 5,723 27.4 1,983 1,418 39.9 

-401 -3 N/M -419 13 N/M

13,296 10,705 24.2 3,713 2,588 43.5 

2,312 1,550 49.2 725 491 47.6 

6,477 5,861 10.5 2,464 1,450 69.9

10,920 10,195 7.1 3,196 2,372 34.8 

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

FDIC Quarterly Banking Profile 

Fourth Quarter 2001 11 FDIC-Insured Commercial Banks 
TABLE III-B. Full Year 2001, FDIC-Insured Savings Institutions 

FULL YEAR Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,533 576 812 101 44 611 201 387 122 107 105 

Total assets (in billions).................................... $1,299.0 $29.5 $251.4 $191.1 $827.0 $443.6 $95.1 $170.3 $43.2 $73.4 $473.4 

Total deposits (in billions).................................... 797.8 23.5 190.4 132.2 451.7 293.8 66.5 120.5 26.7 42.1 248.2 

Net income (in millions).................................... 13,296 182 1,831 2,134 9,148 3,546 546 2,302 348 915 5,638 

% of unprofitable institutions.............................. 8.2 16.1 3.3 5.0 2.3 7.0 9.0 9.6 11.5 7.5 5.7 

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

Performance ratios (%) 

55.7 46.0 59.1 72.3 81.8 49.8 58.2 56.8 59.0 57.9 75.2 

Yield on earning assets.................................... 7.41 7.32 7.37 7.37 7.44 7.17 7.58 7.92 7.42 7.58 7.39 

Cost of funding earning assets........................... 4.18 4.10 4.08 4.08 4.24 3.87 4.61 4.58 4.50 4.13 4.21 

Net interest margin.......................................... 3.23 3.21 3.29 3.29 3.20 3.30 2.97 3.34 2.91 3.45 3.18 

Noninterest income to earning assets.................. 1.04 2.67 0.84 1.27 0.98 0.95 1.69 1.87 0.95 1.34 0.65 

Noninterest expense to earning assets.................. 2.54 4.82 2.91 2.73 2.29 2.54 3.43 3.17 2.52 2.95 2.06 

Loan and lease loss provision to assets............... 0.23 0.14 0.15 0.15 0.27 0.14 0.56 0.42 0.22 0.33 0.16 

Net operating income to assets........................... 0.89 0.48 0.67 1.10 0.92 0.91 0.37 1.04 0.67 1.14 0.90 

Pretax return on assets................................. 1.68 1.06 1.13 1.66 1.87 1.43 0.95 2.05 1.26 1.59 1.97 

Return on assets............................................. 1.08 0.64 0.76 1.20 1.17 0.85 0.61 1.43 0.83 1.31 1.25 

Return on equity............................................. 12.73 5.06 7.23 12.96 15.50 8.66 7.22 16.79 9.11 15.56 17.35 

Net charge-offs to loans and leases..................... 0.28 0.13 0.14 0.17 0.35 0.18 0.46 0.69 0.20 0.35 0.16 

Loan and lease loss provision to net charge-offs...... 121.19 165.20 154.20 131.81 115.35 121.14 174.74 81.31 154.05 141.99 148.56 

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

Condition Ratios (%) 

57.79 81.22 69.57 58.53 52.70 57.44 72.80 60.04 63.78 60.74 52.22 

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

Loss allowance to: 

91.81 93.82 93.39 91.86 91.24 92.16 93.34 91.34 92.51 93.24 91.06 

Loans and leases.......................................... 0.88 0.76 0.87 1.04 0.85 0.94 0.96 0.77 0.75 1.02 0.84 

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

Noncurrent assets plus 

102.34 77.42 112.98 108.99 98.76 126.05 118.35 90.70 102.66 69.05 94.35 

other real estate owned to assets..................... 0.66 0.78 0.60 0.79 0.64 0.53 0.69 0.75 0.73 1.04 0.67 

Noncurrent RE loans to RE loans........................ 0.83 0.95 0.71 0.94 0.83 0.68 0.65 0.91 0.68 1.72 0.87 

Equity capital ratio............................................. 8.44 12.47 10.44 9.32 7.48 9.53 8.45 8.82 8.92 8.53 7.22 

Core capital (leverage) ratio.............................. 7.80 12.09 9.96 8.62 6.80 8.61 8.35 8.39 8.35 8.38 6.58 

Tier 1 risk-based capital ratio.............................. 12.66 21.74 16.58 13.51 10.99 14.00 12.70 12.61 14.45 13.11 11.14 

Total risk-based capital ratio.............................. 14.01 22.77 17.64 14.57 12.51 15.30 14.14 13.95 15.53 14.06 12.63 

Gross real estate assets to gross assets............... 73.18 68.39 70.59 73.61 74.04 71.86 67.59 72.09 76.30 60.74 77.59 

Gross 1-4 family mortgages to gross assets............ 45.75 47.64 43.04 38.00 48.30 41.12 41.94 49.88 45.96 26.96 52.27 

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

Structural Changes 

108.26 82.94 87.65 96.42 121.73 94.11 100.72 104.28 111.17 109.18 128.49 

New Charters................................................ 17 13 3 1 0 6 2 5 1 1 2 

Thrifts absorbed by mergers........................... 65 17 40 6 2 22 10 18 5 2 8 

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

PRIOR FULL YEARS

 (The way it was...) 

1 0 0 1 0 0 0 1 0 0 0 

Number of institutions...............................2000 1,589 627 817 105 40 627 211 405 125 110 111

 ...............................................1998 1,690 702 843 111 34 656 233 442 125 120 114

 ...............................................1996 1,926 845 920 125 36 730 278 500 145 129 144 

Total assets (in billions).............................2000 $1,217.3 $31.1 $244.9 $202.9 $738.4 $400.0 $85.9 $181.8 $42.9 $84.5 $422.2

 ................................................1998 1,088.4 36.3 245.0 220.5 586.7 360.2 66.4 176.1 36.7 70.6 378.5

 ................................................1996 1,029.0 43.7 270.8 258.3 456.2 345.4 63.2 175.8 50.3 78.3 316.0 

Return on assets (%)................................2000 0.92 0.54 0.76 0.90 1.00 0.90 0.59 0.94 0.53 1.06 1.02

 ................................................1998 1.01 0.77 0.89 1.08 1.04 0.97 0.93 0.97 0.92 1.19 1.05

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

Net charge-offs to loans & leases (%) 

0.70 0.44 0.66 0.82 0.69 0.84 0.52 0.70 0.56 1.57 0.40 

 ................................................2000 0.20 0.06 0.09 0.36 0.19 0.14 0.31 0.37 0.16 0.22 0.14

 ................................................1998 0.22 0.08 0.15 0.27 0.24 0.16 0.54 0.20 0.10 0.42 0.19

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

Noncurrent assets plus 

0.32 0.10 0.17 0.33 0.43 0.32 0.38 0.14 0.15 0.32 0.44 

OREO to assets (%)*.....................2000 0.56 0.64 0.53 0.89 0.48 0.54 0.62 0.75 0.71 0.84 0.42

 ................................................1998 0.72 0.77 0.69 1.03 0.61 0.79 0.66 0.69 0.54 0.87 0.66

 .................................................1996 1.09 0.96 0.99 1.25 1.08 1.26 0.99 0.65 0.67 1.11 1.24 

Equity capital ratio (%)..............................2000 8.45 13.14 10.53 8.86 7.46 10.02 8.50 8.49 9.35 8.00 6.95

 ................................................1998 8.68 12.33 10.74 9.03 7.47 9.80 10.16 9.16 9.64 8.20 7.14

 ................................................1996 8.34 11.40 9.94 8.29 7.13 9.12 9.44 8.69 8.71 8.10 7.09 

* 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 Fourth Quarter 2001 
TABLE IV-B. FOURTH Quarter 2001, FDIC-Insured Savings Institutions 

FOURTH QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- South 

west west West 

1,533 576 812 101 44 611 201 387 122 107 105 

Total assets (in billions)....................................... $1,299.0 $29.5 $251.4 $191.1 $827.0 $443.6 $95.1 $170.3 $43.2 $73.4 $473.4 

Total deposits (in billions).................................... 797.8 23.5 190.4 132.2 451.7 293.8 66.5 120.5 26.7 42.1 248.2 

Net income (in millions)....................................... 3,713 32 515 971 2,194 517 170 1,150 95 251 1,529 

% of unprofitable institutions................................. 10.2 18.1 5.7 5.9 2.3 10.0 12.4 11.6 12.3 7.5 2.9 

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

Performance Ratios (annualized, %) 

65.6 58.7 68.7 71.3 84.1 61.4 69.2 66.4 63.9 67.3 80.0 

Yield on earning assets....................................... 6.87 6.94 6.98 7.01 6.79 6.68 7.09 7.54 7.07 6.94 6.72 

Cost of funding earning assets.............................. 3.43 3.66 3.58 3.53 3.35 3.31 3.99 4.04 3.88 3.23 3.20 

Net interest margin............................................. 3.44 3.28 3.41 3.48 3.44 3.37 3.10 3.50 3.19 3.71 3.52 

Noninterest income to earning assets..................... 0.98 2.96 0.96 2.18 0.64 0.88 1.92 2.94 1.06 1.58 0.08 

Noninterest expense to earning assets.................. 2.62 5.34 3.03 2.84 2.35 2.43 3.62 3.30 2.80 3.40 2.22 

Loan and lease loss provision to assets................ 0.19 0.19 0.18 0.15 0.20 0.13 0.62 -0.04 0.23 0.36 0.21 

Net operating income to assets.............................. 1.00 0.24 0.71 1.99 0.89 1.00 0.43 2.28 0.71 1.12 0.67 

Pretax return on assets................................. 1.78 0.91 1.23 2.58 1.80 1.11 1.13 3.64 1.35 1.77 1.92 

Return on assets................................................ 1.16 0.44 0.83 2.08 1.08 0.47 0.73 2.74 0.88 1.40 1.32 

Return on equity................................................ 13.60 3.49 7.89 22.51 14.13 4.89 8.52 31.66 9.85 16.36 17.81 

Net charge-offs to loans and leases........................ 0.34 0.18 0.15 0.17 0.44 0.20 0.55 0.99 0.21 0.37 0.16 

Loan and lease loss provision to net charge-offs..... 82.89 160.90 173.39 132.50 67.58 104.04 161.84 -5.63 155.64 149.89 190.90 

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

Structural Changes (QTR) 

57.98 85.17 68.67 49.04 55.73 55.28 71.29 50.76 64.62 63.64 59.84 

New charters................................................... 4 3 1 0 0 1 1 1 1 0 0 

Thrifts absorbed by mergers.............................. 18 4 12 1 1 2 4 6 1 1 4 

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

PRIOR FOURTH QUARTERS

 (The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%)................................2000 0.86 0.63 0.66 0.83 0.94 0.80 0.51 0.89 0.11 1.12 1.00

 .................................................1998 0.76 0.64 0.79 1.03 0.65 0.82 0.55 0.83 0.93 1.16 0.62

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

Net charge-offs to loans & leases (%)

0.84 0.81 0.91 1.08 0.67 0.98 0.85 1.06 0.63 1.02 0.57 

 .................................................2000 0.24 0.11 0.13 0.40 0.24 0.18 0.39 0.47 0.17 0.21 0.16

 .................................................1998 0.23 0.10 0.17 0.27 0.25 0.16 0.18 0.24 0.15 0.41 0.26

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

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

Rhode Island, Vermont, U.S. Virgin Islands

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

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

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

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

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

FDIC Quarterly Banking Profile 

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

December 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........................... 0.99 1.88 1.20 0.94 0.90 0.77 1.05 1.31 1.39 1.54 0.94 

Construction, development, and land.................. 1.31 1.62 1.50 1.59 1.03 1.01 0.95 2.03 1.16 1.58 1.18 

Commercial real estate.................................... 0.70 1.31 0.97 0.62 0.47 0.62 1.30 1.02 1.02 1.11 0.25 

Multifamily residential real estate........................ 0.24 0.79 0.58 0.28 0.15 0.21 0.91 0.55 1.37 0.54 0.13 

Home equity loans.......................................... 0.40 0.63 0.49 0.43 0.36 0.35 0.34 0.86 0.41 0.02 0.18 

Other 1-4 Family residential.............................. 1.10 2.06 1.31 1.09 1.02 0.87 1.09 1.38 1.53 1.77 1.09 

Commercial and industrial loans........................... 1.59 2.31 1.93 1.42 1.50 1.28 2.11 2.70 1.80 1.13 1.61 

Loans to individuals............................................. 2.05 2.77 2.14 1.69 2.08 2.07 2.82 1.32 1.95 1.03 3.13 

Credit card loans............................................. 1.71 1.33 2.64 1.23 1.65 2.10 4.33 0.98 3.64 0.71 1.56 

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

Percent of Loans Noncurrent* 

2.18 2.88 2.10 1.72 2.30 2.08 2.28 1.51 1.82 1.40 3.34 

All real estate loans............................................. 0.83 0.95 0.71 0.94 0.83 0.68 0.65 0.91 0.68 1.72 0.87 

Construction, development, and land.................. 1.39 1.27 0.85 1.52 1.65 0.74 1.04 1.37 0.94 1.48 2.19 

Commercial real estate.................................... 1.37 1.20 0.92 1.41 1.78 1.04 0.92 1.30 1.08 2.75 2.00 

Multifamily residential real estate........................ 0.36 0.66 0.28 1.07 0.15 0.25 0.32 0.62 0.19 9.84 0.07 

Home equity loans.......................................... 0.17 0.20 0.20 0.31 0.12 0.20 0.16 0.30 0.11 0.01 0.07 

Other 1-4 Family residential.............................. 0.81 0.91 0.73 0.77 0.84 0.68 0.60 0.90 0.64 1.18 0.89 

Commercial and industrial loans........................... 1.96 1.73 1.97 1.72 2.05 1.75 1.73 1.78 2.06 2.18 2.64 

Loans to individuals............................................. 0.65 1.08 0.67 0.58 0.64 0.70 1.22 0.40 0.60 0.45 0.50 

Credit card loans............................................. 1.12 0.61 0.90 0.62 1.16 1.71 3.10 0.32 1.44 0.60 0.72 

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

Percent of Loans Charged-off (net) 

0.49 1.12 0.65 0.58 0.40 0.55 0.54 0.44 0.54 0.29 0.49 

All real estate loans............................................. 0.05 0.05 0.04 0.07 0.05 0.04 0.04 0.09 0.08 0.08 0.05 

Construction, development, and land.................. 0.12 0.29 0.05 0.17 0.12 0.04 0.07 0.10 0.26 0.17 0.16 

Commercial real estate.................................... 0.13 0.04 0.06 0.15 0.18 0.08 0.09 0.04 0.33 0.16 0.26 

Multifamily residential real estate........................ 0.00 -0.02 -0.01 0.00 0.00 0.01 0.00 0.03 -0.02 0.07 -0.01 

Home equity loans.......................................... 0.05 0.06 0.05 0.07 0.05 0.04 0.16 0.07 0.08 0.07 0.02 

Other 1-4 Family residential.............................. 0.05 0.04 0.05 0.06 0.05 0.04 0.03 0.10 0.03 0.03 0.04 

Commercial and industrial loans........................... 1.30 0.99 0.83 0.75 1.67 0.90 2.28 1.22 1.27 1.14 1.96 

Loans to individuals............................................. 2.21 0.68 0.98 0.86 2.80 1.30 1.96 4.33 1.13 0.99 2.12 

Credit card loans............................................. 5.50 1.20 3.12 2.38 5.78 3.88 5.95 9.56 7.01 1.46 3.08 

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

Loans Outstanding (in billions) 

1.10 0.64 0.69 0.80 1.33 0.92 0.89 1.08 0.75 0.52 2.02 

All real estate loans............................................. $758.4 $17.5 $149.9 $111.2 $479.8 $240.7 $51.4 $104.5 $26.5 $32.6 $302.7 

Construction, development, and land.................. 38.4 1.1 10.5 9.1 17.7 8.3 5.7 5.7 1.9 7.1 9.7 

Commercial real estate.................................... 62.9 1.7 21.6 16.9 22.7 30.7 4.5 7.9 3.5 4.4 11.9 

Multifamily residential real estate........................ 59.0 0.4 8.8 12.1 37.6 18.0 1.1 5.4 1.2 1.1 32.1 

Home equity loans.......................................... 30.0 0.5 6.2 5.3 18.0 10.5 2.6 6.7 0.8 1.0 8.4 

Other 1-4 Family residential.............................. 567.9 13.6 102.6 67.9 383.8 173.0 37.5 78.8 19.2 18.9 240.5 

Commercial and industrial loans........................... 36.8 0.8 7.5 7.4 21.1 17.4 4.1 4.0 1.1 3.5 6.7 

Loans to individuals............................................. 69.4 1.3 10.5 8.9 48.7 18.2 11.8 15.9 2.1 9.9 11.5 

Credit card loans............................................. 17.4 0.1 1.3 0.4 15.7 2.3 3.1 5.6 0.1 5.2 1.0 

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

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

51.6 1.2 9.1 8.5 32.8 15.7 8.6 10.3 2.0 4.7 10.3 

All other real estate owned.................................... $1,050.2 $35.7 $216.5 $285.6 $512.4 $263.1 $106.8 $188.7 $97.2 $79.6 $314.9 

Construction, development, and land.................. 151.7 3.3 28.6 23.6 96.2 8.8 45.7 9.6 47.2 13.6 26.8 

Commercial real estate.................................... 274.2 6.1 53.5 158.8 55.8 132.7 12.0 32.0 21.6 30.7 45.2 

Multifamily residential real estate........................ 27.1 1.4 7.4 16.5 1.8 4.3 3.2 8.1 1.0 9.3 1.2 

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

Troubled Real Estate Asset Rates*** 

(% of total RE assets) 

609.4 25.4 130.2 91.7 362.1 121.9 46.6 139.4 29.9 26.5 245.1 

All real estate loans............................................. 0.96 1.15 0.86 1.19 0.94 0.79 0.86 1.08 1.05 1.96 0.97 

Construction, development, and land.................. 1.78 1.55 1.12 1.77 2.19 0.85 1.83 1.53 3.30 1.67 2.46 

Commercial real estate.................................... 1.80 1.61 1.16 2.33 2.03 1.46 1.18 1.71 1.70 3.42 2.39 

Multifamily residential real estate........................ 0.41 0.97 0.36 1.21 0.16 0.27 0.62 0.77 0.27 10.59 0.07 

1-4 family residential....................................... 0.88 1.07 0.81 0.86 0.89 0.72 0.69 1.02 0.77 1.25 0.96 

* 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 Fourth Quarter 2001 
ALL FDIC-INSURED INSTITUTIONS 

n BIF Reserve Ratio Falls 5 Basis Points To 1.27 Percent 

n SAIF Reserve Ratio Drops to 1.37 Percent 

n Full Year Insured Deposit Growth Second Fastest in Fifteen Years 

Deposits insured by the FDIC moved past $3.2 trillion in 2001, despite the number of insured institutions (including IBAs) falling below the 9,700 mark 

for the first time. Insured deposits rose by 1 percent 

during the fourth quarter bringing the growth rate for 

the full year to 5.1 percent. Growth was slower than 

the 6.5 percent increase for 2000, however the 

annual growth rate for 2001 was still the second 

fastest in the past fifteen years. Insured deposits 

reported by the 9,631 FDIC member institutions 

rose by $156 billion in 2001, including a $40 billion 

increase (24 percent) in insured brokered deposits. 

Among institutions whose brokerage affiliates 

sweep cash management account balances into 

FDIC-insured accounts, insured brokered deposits 

increased by $6.4 billion during the fourth quarter 

and by $47.2 billion for full year 2001. 

Deposits insured by the Bank Insurance Fund (BIF) 

grew by 0.2 percent during the fourth quarter and by 

4.7 percent for the full year, reaching $2.4 trillion at 

year-end. The BIF balance was $30.6 billion (unaudited) at year-end 2001, down $1.2 billion from the 

previous quarter. Most of the decrease is attributable to increased reserves for calendar year 2002 

insurance losses. The reserve ratio for the Bank Insurance Fund for year-end 2001 was 1.27 percent, 

down from the previous quarter’s 1.32 percent. This 

5 basis-point drop in the BIF reserve ratio was 

largest quarterly decline since the fourth quarter of 

1991. At the beginning of 2001, the BIF’s reserve 

ratio was 1.35 percent 

The reserve ratio of the Savings Association 

Insurance Fund (SAIF) was 1.37 percent at yearend 2001, down from 1.43 percent at year-end 

2000. The balance of the SAIF was $11.0 billion 

(unaudited) on December 31, 2001. SAIF-insured 

deposits were $802 billion at year-end, having 

grown 3 percent during the fourth quarter and 6 percent for the year. The annual growth rate was the 

highest since the inception of SAIF in 1989. Despite 

the relatively rapid growth of insured deposits, 

insured institutions continued to rely increasingly on 

other funding alternatives. Measured as a percentage of domestic liabilities, insured deposits continued a steady ten-year decline, falling to 50.9 percent 

at the end of 2001, compared to 51.7 percent at the 

end of 2000. At year-end the ratio was 46 percent 

for institutions with total assets greater than $1 billion, and 73 percent for smaller institutions. 

There were no failures of FDIC insured institutions 

during the fourth quarter of 2001. For all of 2001, 

the 4 failures included 3 BIF members with total 

assets of $54 million, and one SAIF member institution with total assets of $2.2 billion. Losses for the 

four failures are estimated at $375 million. In 2000, 

there were seven insured-institution failures, with 

total assets of $408 million and estimated losses of 

$40 million. 

QUARTERLY PERCENTAGE CHANGE IN 

INSURANCE FUND BALANCES, 1999–2001 

Percent Change (not annualized) 

0 

Bank Insurance Fund (BIF) 

Savings Association 

Insurance Fund (SAIF) 

1.0 

1.3 1.4 

0.7 

1.5 

1.0 

1.6 

0.5 

2.0 

-1.7 

0.9 

1.8 

0.8 

-0.1 

-1.1 

-0.3 

1.1 

0.1 

2.6 

1.4 1.5 

0.8 0.9 

-3.9 

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

1999 2000 2001 

FDIC Quarterly Banking Profile 

Fourth Quarter 2001 15 All FDIC-Insured Institutions 
 

 

 

 

 

 

 

 

 

 

 

 

 

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

(dollar figures in millions) 2001 2000 1999 1998 1997 1996 1995 

Number of institutions reporting................................. 9,613 9,904 10,221 10,463 10,922 11,453 11,970 

Total assets.........................................................$ 7,868,249 $7,461,966 $6,883,688 $6,530,951 $6,041,128 $5,607,333 $5,338,419 

Total deposits...................................................... 5,189,445 4,914,827 4,538,085 4,386,298 4,125,862 3,925,059 3,769,481 

Number of problem institutions................................. 114 94 79 84 92 117 193 

Assets of problem institutions (in billions).................. $40 $24 $10 $11 $6 $12 $31 

Number of failed/assisted institutions..................... 4 ... 7 8 3 1 6 8 

Assets of failed/assisted institutions (in billions)......... .$2 25 $0.41 $1.56 $0.37 $0.03 $0.22 $1.21 

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

(dollar figures in millions) 

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

Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

2001 2001 2000 00:4-01:4 

 9,613 9,702 9,904 -2.9 

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

CONDITION DATA 

1,967,369 1,934,507 1,914,616 2.8 

Total assets..................................................................... $7,868,249 $7,844,406 $7,461,966 5.4

 Loans secured by real estate............................................. 2,561,981 2,507,761 2,396,044 6.9 

1-4 Family residential...................................................... 1,564,167 1,529,378 1,490,702 4.9 

Home equity loans...................................................... 184,315 173,856 150,603 22.4 

Multifamily residential property.......................................... 123,131 122,467 116,975 5.3 

Commercial real estate................................................... 570,490 557,381 525,000 8.7 

Construction, development, and land................................. 231,637 228,195 196,969 17.6 

Other real estate loans................................................... 72,556 70,341 66,399 9.3 

Commercial & industrial loans 1,019,234 1,047,984 1,085,026 -6.1

 Loans to individuals......................................................... 700,582 676,392 671,857 4.3

 Credit cards & related plans............................................. 249,829 234,942 265,931 -6.1

 Other loans & leases...................................................... 488,209 502,900 497,563 -1.9

 Less: Unearned income & contra accounts........................ 3,273 2,831 3,117 5.0

 Total loans & leases......................................................... 4,766,732 4,732,207 4,647,373 2.6

 Less: Reserve for losses................................................... 79,759 76,077 71,429 11.7 

Net loans and leases......................................................... 4,686,973 4,656,130 4,575,944 2.4 

Securities........................................................................... 1,464,679 1,382,665 1,360,965 7.6 

Other real estate owned...................................................... 4,619 4,505 3,908 18.2 

Goodwill and other intangibles............................................. 143,089 134,200 120,769 18.5 

All other assets.................................................................. 1,568,888 1,666,906 1,400,381 12.0 

Total liabilities and capital................................................... 7,868,249 7,844,406 7,461,966 5.4

 Deposits....................................................................... 5,189,445 5,084,431 4,914,827 5.6

 Other borrowed funds......................................................... 1,495,163 1,526,226 1,466,957 1.9

 Subordinated debt............................................................ 99,227 96,388 90,166 10.0

 All other liabilities............................................................... 377,340 440,007 356,365 5.9

 Equity capital.................................................................. 707,074 697,353 633,653 11.6 

Loans and leases 30-89 days past due.................................... 62,802 62,127 56,536 11.1 

Noncurrent loans and leases................................................ 62,503 58,855 48,803 28.1 

Restructured loans and leases............................................. 2,674 2,748 2,704 -1.1 

Direct and indirect investments in real estate........................... 688 915 914 -24.7 

Mortgage-backed securities................................................... 810,098 766,932 683,896 18.5 

Earning assets.................................................................. 6,791,312 6,766,546 6,507,112 4.4 

FHLB Advances (Source: TFR, FHFB, Call Reports).................. 452,891 447,133 435,985 3.9 

Unused loan commitments................................................... 5,192,860 5,063,115 4,715,961 10.1 

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 Preliminary 

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

2001 2000 %Change 2001 2000 00:4-01:4 

$486,813 $512,229 -5.0 $112,892 $134,746 -16.2 

235,025 276,505 -15.0 44,623 74,791 -40.3

251,789 235,724 6.8 68,269 59,955 13.9 

45,876 32,034 43.2 15,797 10,788 46.4 

168,893 164,837 2.5 43,336 42,945 0.9 

251,043 241,588 3.9 65,305 62,145 5.1 

8,687 -1,484 N/M 2,657 539 392.6 

44,195 43,706 1.1 10,375 10,208 1.6 

-649 -35 N/M -400 -32 N/M

87,606 81,714 7.2 22,385 20,266 10.5 

* Excludes insured branches of foreign banks (IBAs) and institutions in RTC conservatorship (the last of which ended in 1995). N/M - Not meaningful 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 16 Fourth Quarter 2001 
 

 

 

 

TABLE III-C. Selected Insurance Fund Indicators* 

(dollar figures in millions) Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

2001 2001 2000 00:4-01:4 

Bank Insurance Fund 

Reserve ratio (%)..................................................................... 1.27 1.32 1.35 -6.3 

Fund balance (unaudited)......................................................... $30,598 $31,834 $30,975 -1.2 

Estimated insured deposits...................................................... 2,408,878 2,403,880 2,299,932 4.7 

SAIF-member Oakars............................................................ 65,670 63,181 58,839 11.6 

BIF-members..................................................................... 2,343,208 2,340,699 2,241,093 4.6 

Assessment base.................................................................. 3,584,610 3,476,199 3,325,581 7.8 

SAIF-member Oakars............................................................ 66,953 64,429 59,791 12.0 

BIF-members..................................................................... 3,517,657 3,411,770 3,265,790 7.7 

Savings Association Insurance Fund 

Reserve ratio (%)..................................................................... 1.37 1.39 1.43 -4.4 

Fund balance (unaudited)......................................................... $11,008 $10,815 $10,759 2.3 

Estimated insured deposits...................................................... 801,849 778,880 755,156 6.2 

BIF-member Oakars............................................................ 346,234 321,360 310,279 11.6 

SAIF-member Sassers......................................................... 73,516 72,314 68,432 7.4 

Other SAIF members............................................................ 382,099 385,206 376,445 1.5 

Assessment base.................................................................. 897,278 874,802 823,824 8.9 

BIF-member Oakars............................................................ 348,391 322,499 311,127 12.0 

SAIF-member Sassers......................................................... 92,432 90,239 82,948 11.4 

Other SAIF members............................................................ 456,455 462,064 429,749 6.2 

Insurance Fund Reserve Ratios* Fund Balances and Insured Deposits* 

Percent of Insured Deposits ($Millions) 

BIF BIF-Insured SAIF SAIF-Insured 

Balance Deposits Balance Deposits 

12/95 25,454 1,951,693 3,358 711,897 

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

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

Target 

Ratio 

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

1.30 1.34 1.38 1.39 1.37 1.35 1.32 1.33 1.32 

1.27 

0.47 

1.31 

1.36 1.37 

1.43 1.43 1.43 1.40 1.39 1.37 

BIF 

SAIF 

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

1.25 

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

12/00 30,975 2,299,932 10,759 755,156 

3/01 31,426 2,372,090 10,973 767,677 

6/01 31,681 2,382,801 10,792 772,091 

9/01 31,834 2,403,880 10,815 778,880 

12/01 30,598 2,408,878 11,008 801,849 

* 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. 

TABLE IV-C. Closed/Assisted Institutions 

(dollar figures in millions) 

2001 2000 1999 1998 1997 1996 1995 

BIF Members 

Number of institutions............................................................ 3 6 7 3 1 5 6 

Total assets........................................................................ $54 $378 $1,490 $371 $27 $186 $758 

SAIF Members 

Number of institutions............................................................ 1 1 1 0 0 1 2 

Total assets........................................................................ $2,200 $30 $71 $0 $0 $34 $456 

FDIC Quarterly Banking Profile 

Fourth Quarter 2001 17 All FDIC-Insured Institutions 
 

 

 

 

 

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

(dollar figures in millions) 2001 2000 1999 1998 1997 1996 1995 

BIF Members 

Number of institutions reporting................................................ 8,326 8,571 8,834 9,031 9,404 9,823 10,243 

BIF-member Oakars............................................................ 754 743 744 745 778 793 807 

Other BIF-members............................................................... 7,572 7,828 8,090 8,286 8,626 9,030 9,436 

Total assets...........................................................................$ 6,856,416 $6,509,805 $5,980,156 $5,702,774 $5,285,403 $4,857,761 $4,577,898 

Total deposits........................................................................ 4,567,604 4,337,727 3,987,382 3,843,816 3,611,453 3,404,204 3,225,650 

Net income........................................................................... 76,968 73,644 73,970 64,335 61,459 54,483 50,780 

Return on assets (%)............................................................... 1.15 1.18 1.30 1.18 1.22 1.17 1.15 

Return on equity (%)............................................................... 12.98 13.90 15.11 13.81 14.44 14.14 14.32 

Noncurrent assets plus OREO to assets (%)................................. 0.90 0.72 0.62 0.64 0.67 0.77 0.89 

Number of problem institutions................................................... 90 74 66 68 73 86 152 

Assets of problem institutions................................................... $31,881 $10,787 $4,450 $5,326 $4,598 $6,624 $20,166 

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

Assets of failed/assisted institutions.......................................... $54 $378 $1,490 $371 $27 $182 $753 

SAIF Members 

Number of institutions reporting................................................ 1,287 1,333 1,387 1,432 1,518 1,629 1,727 

SAIF-member Oakars............................................................ 126 123 123 116 112 94 77 

Other SAIF-members............................................................ 1,161 1,210 1,264 1,316 1,406 1,535 1,650 

Total assets...........................................................................$ 1,011,833 $952,161 $903,532 $828,177 $755,724 $749,573 $760,521 

Total deposits........................................................................ 621,840 577,100 550,703 542,481 514,409 520,855 543,831 

Net income........................................................................... 10,638 8,070 8,450 7,598 6,486 4,892 5,584 

Return on assets (%)............................................................... 1.11 0.89 0.99 0.98 0.94 0.67 0.76 

Return on equity (%)............................................................... 13.48 11.12 11.97 11.34 11.13 8.08 9.47 

Noncurrent assets plus OREO to assets (%)................................. 0.75 0.65 0.64 0.80 0.98 1.07 1.12 

Number of problem institutions................................................... 24 20 13 16 19 31 42 

Assets of problem institutions................................................... $7,923 $13,053 $5,524 $5,992 $1,662 $5,548 $10,864 

Number of failed/assisted institutions....................................... 1 ... 1 1 0 0 1 2 

Assets of failed/assisted institutions.......................................... $2,200 $30 $71 $0 $0 $35 $426 

* Excludes insured branches of foreign banks (IBAs) and institutions in RTC conservatorship (the last of which ended in 1995). 

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

(dollar figures in millions) 

December 31, 2001 

Commercial Banks and Savings Institutions 

Number of Total Domestic 

Institutions Assets Deposits* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks............................................. 8,080 6,569,240 3,761,942 2,180,244 346,117 2,526,361 

BIF-member..................................................................... 7,969 6,463,038 3,690,203 2,162,963 309,122 2,472,085 

SAIF-member.................................................................. 111 106,201 71,739 17,281 36,995 54,276 

FDIC-Supervised............................................................... 4,971 1,231,113 914,978 609,819 70,764 680,584 

OCC-Supervised............................................................... 2,137 3,634,997 2,001,302 1,143,099 200,983 1,344,081 

Federal Reserve-Supervised................................................ 972 1,703,130 845,662 427,326 74,369 501,696 

FDIC-Insured Savings Institutions.......................................... 1,533 1,299,009 797,822 227,460 455,732 683,193 

OTS-Supervised Savings Institutions....................................... 1,020 987,512 579,573 99,087 395,281 494,367 

BIF-member..................................................................... 40 140,451 72,239 52,855 13,182 66,037 

SAIF-member.................................................................. 980 847,061 507,333 46,232 382,099 428,331 

FDIC-Supervised State Savings Banks.................................... 513 311,497 218,249 128,373 60,452 188,825 

BIF-member..................................................................... 317 252,927 175,551 126,216 23,930 150,146 

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

Total Commercial Banks and 

 196 58,571 42,699 2,157 36,522 38,679 

Savings Institutions................................................ 9,613 7,868,249 4,559,764 2,407,704 801,849 3,209,553 

BIF-member........................................................................ 8,326 6,856,416 3,937,993 2,342,034 346,234 2,688,268 

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

Other FDIC-Insured Institutions 

 1,287 1,011,833 621,771 65,670 455,615 521,285 

U.S. Branches of Foreign Banks............................................. 18 9,780 4,396 1,174 0 1,174 

Total FDIC-Insured Institutions....................................... 9,631 7,878,029 4,564,160 2,408,878 801,849 3,210,727 

* Excludes $630 billion in foreign office deposits, which are uninsured. 

FDIC Quarterly Banking Profile 

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

BIF Assessment Base Distribution 

Assessable Deposits in Millions as of December 31, 2001 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2002 

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

 7,722 

 $3,466,743 

 134 

 $28,064 

 3 

 $320 

92.5 

96.7 

1.6 

0.8 

0.0 

0.0 

387 4.6 

$65,305 1.8 

17 0.2 

$1,248 0.0 

1 0.0 

$96 0.0 

62 

$20,530 

11 

$1,857 

7 

$448 

0.7 

0.6 

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 December 31, 2001 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2002 

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

 1,163 

 $858,390 

 11 

 $1,348 

 0 

 $0 

90.4 

95.7 

0.9 

0.2 

0.0 

0.0 

80 6.2 

$29,733 3.3 

9 0.7 

$1,667 0.2 

1 0.1 

$0 0.0 

18 

$4,905 

3 

$965 

2 

$270 

1.4 

0.5 

0.2 

0.1 

0.2 

0.0 

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 

First Semiannual 2002 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 

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

1993–2001 

Number of Institutions 

Saving 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 6/01 

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

242 33 17 5 5 5 5 5 4 4 5 11 12 17 17 17 

9/01 

4 

14 

$334 

$72 

$31 

$12 $6 $11 $10 $9 $8 $10 $10 $19 $19 $24 $23 $24 $18 

$40 

$ Billions 

Saving Institutions 

Commercial Banks 

12/01 

4 

36 

Saving Institutions 

Commercial Banks 

Saving 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 6/01 

146 71 49 35 21 15 16 14 11 13 15 16 15 18 17 22 

426 247 144 82 71 69 64 62 69 66 72 73 75 76 78 80 

9/01 

20 

74 

572 

318 

193 

117 

92 84 80 76 80 79 87 89 90 94 95 102 94 114 

12/01 

19 

95 

ASSETS OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1993–2001 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 20 Fourth 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. Savings institutions in conservatorships are 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 

to allow financial institutions to elect Subchapter S corporation status, beginning in 1997. A Subchapter S corporation is 

FDIC Quarterly Banking Profile 

Fourth Quarter 2001 21 Notes to Users 
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. 

Goodwill and other intangibles — intangible assets 

include servicing rights, purchased credit card relationships 

FDIC Quarterly Banking Profile 

Notes to Users 22 Fourth Quarter 2001 
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 

Fourth Quarter 2001 23 Notes to Users