Quarterly Banking Profile
 

FOURTH QUARTER 2003 

� Industry Earnings Set Quarterly, Full-Year Records 

�	 Lower Expenses for Bad Loans, Higher Noninterest Revenues Boost 

Industry Profits 

� Net Interest Margins Stage Modest Rebound 

� Assets of Insured Institutions Rise Above $9 Trillion 

Net Income Continues to Set New Records 

Led by rising income at credit-card lenders and large 

commercial banks, the 9,182 commercial banks and 

savings institutions insured by the FDIC reported 

record-high earnings in the fourth quarter of 2003, the 

fourth consecutive quarter that industry earnings have 

set a record. Net income totaled $31.1 billion, an 

increase of $755 million (2.5 percent) over the third 

quarter, and $5.7 billion (22.3 percent) more than the 

industry earned in the fourth quarter of 2002. The 

average return on assets was 1.38 percent, up from 1.36 

percent in the third quarter, and well above the 1.22 

percent of a year earlier. The greatest improvement in 

profitability occurred at large institutions, whose earnings had been depressed by credit losses on loans to 

large corporate borrowers and by weakness in marketsensitive noninterest revenues. Fewer than half of all 

institutions (45.0 percent) reported an ROA of 1 percent or higher for the quarter. Slightly more than half 

(52.7 percent) reported increased net income compared 

to the fourth quarter of 2002, but only 45.4 percent 

reported higher quarterly ROAs. Net income from 

international operations was only $1.1 billion in the 

fourth quarter, compared to $1.7 billion in the third 

quarter and $1.5 billion in the fourth quarter of 2002. 

Core Earnings Provide Most of the Improvement in 

Profits 

Gains on sales of securities and other assets declined for 

the second quarter in a row. These sales yielded only 

$741 million in gains in the fourth quarter, compared to 

$2.2 billion in the third quarter and $4.1 billion in the 

fourth quarter of 2002. Net operating (core) income, 

which excludes these gains and extraordinary items, was 

$1.3 billion (4.4 percent) higher than in the third quarter, and was almost one-third more ($7.5 billion, or 

32.9 percent) than the industry earned in the fourth 

quarter of 2002. 

Net Interest Income Registers Largest Quarterly 

Increase in Two Years 

Net interest income increased by $2.5 billion (3.6 percent) from the third quarter, as the average net interest 

margin improved from 3.65 percent to 3.75 percent, 

and as interest-bearing assets grew by $156.8 billion 

(2.0 percent). This is the largest quarterly improvement in net interest income since the fourth quarter of 

2001, when the industry posted a $4.2-billion increase. 

Average asset yields increased by 5 basis points, from 

5.19 percent to 5.24 percent, and the average cost of 

Chart 1 

2003 Produced Four Quarters of Record Earnings 

$ Billions 

Securities and Other Gains/Losses, Net 

Net Operating Income 

29.430.2 30.4 31.1 

30 27.2 27.3 25.4 25.5 

22.2 22.8	 22.5 22.7 22.4 22.0 20.9
 20
 20.6 20.4 19.8 20.1 18.1 

10 

0 

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

1999 2000 2001 2002 2003 

FEDERAL DEPOSIT INSURANCE CORPORATION	 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

funding interest-bearing assets fell by 5 basis points, 

from 1.54 percent to 1.49 percent. More than half 

(54.7 percent) of all insured institutions reported 

higher net interest margins in the fourth quarter 

than in the third quarter, but only about one in 

three (34.0 percent) reported higher margins compared to a year earlier. In the fourth quarter of 

2002, the industry’s net interest margin was 3.91 

percent. The overall low level of margins is particularly problematic for profitability at smaller institutions, which obtain a larger share of their revenues 

from net interest income. 

Servicing Income Shows Further Gains 

Noninterest income grew strongly for the third 

quarter in a row, increasing by $1.8 billion (3.5 percent), following increases of $2.1 billion and $1.8 

billion in the third and second quarters, respectively. Servicing fees grew by $1.2 billion (28.8 percent), thanks to increases in the values of mortgage 

servicing assets stemming from a drop-off in mortgage refinancing activity. Investment banking fees 

and commissions increased by $434 million (17.3 

percent). Trading revenue fell for a second consecutive quarter, declining by $681 million (22.9 percent), after a $314-million decline in the third 

quarter. 

Chart 2 

Larger Institutions Had Some Margin Improvement 

in the Fourth Quarter 

Net Interest Margin (%)

5.0 

Assets < $100 Million

4.5 

4.13 

4.0 

3.74 

3.5 

Assets > $100 Million 

3.0 

12 3 4 12 3 4 12 3 4 12 3 4 12 3 4 

1999 2000 2001 2002 2003 

Loss Provisioning Maintains Favorable Trend 

Provisions for loan losses registered a seasonal 

increase of $550 million (6.6 percent) from the 

third quarter, but were $5.0 billion (36.0 percent) 

less than the industry set aside in the fourth quarter 

of 2002. At $8.8 billion, this is the lowest fourthquarter provision since 1999, when fourth-quarter 

provisions totaled $6.5 billion. Loss provisions for 

international operations were $150 million (13.6 

percent) higher than in the third quarter, but were 

down by $348 million (21.7 percent) compared to 

the fourth quarter of 2002. 

Credit-Card Lenders, Large Banks Have Biggest 

Earnings Improvement 

The greatest improvements in profitability were registered by credit-card lenders and international 

banks, whose ROAs increased by 40 and 24 basis 

points, respectively. Credit-card lenders had strong 

growth in both net interest income and in noninterest revenues. These improvements outweighed 

higher expenses for loan losses. At international 

banks, rising asset yields also produced wider net 

interest margins, but the greatest boost to earnings 

came from lower loan-loss provisions. Mortgage 

lenders saw their noninterest income increase 

thanks to lower impairment charges on mortgage 

servicing rights, but declining asset yields produced 

narrower net interest margins, and average profitability for this group declined by 6 basis points. 

Chart 3 

1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 

-0.5 

0.0 

0.5 

1.0 

1.5 

ROA (%) 

-2 

0 

2 

4 

6 

8 

10 

12 

14 

16 

ROE (%) 

Return on Equity (ROE) 

Return on Assets (ROA) 

Profitability Measures Reached New Highs in 2003 

FOURTH QUARTER 2003 2 ALL FDIC-INSURED INSTITUTIONS 
 

FDIC Quarterly Banking Profile 

Full-Year Earnings Top $120 Billion for the First Time 

For the year, insured banks and thrifts earned a 

record $120.6 billion, easily surpassing the previous 

record total of $105.1 billion set in 2002. Well over 

half of all institutions—58.8 percent—reported 

higher earnings in 2003. Both the annual ROA and 

ROE reached all-time highs of 1.38 percent and 

15.04 percent, respectively. The two main sources 

of earnings strength in 2003 were higher noninterest 

income (up $18.9 billion, or 10.3 percent) and 

lower loan-loss provisions (down $14.2 billion, or 

27.6 percent). Much of this improvement was concentrated among larger commercial banks; fewer 

than half of all banks and thrifts (44.9 percent) 

reported higher ROAs in 2003. The full-year net 

interest margin of 3.73 percent was the lowest since 

1990. But only 5.7 percent of insured institutions 

were unprofitable in 2003, the lowest proportion 

since 1997. 

Asset-Quality Indicators Worsen in Consumer 

Portfolios 

Net loan charge-offs had a seasonal increase of $1.1 

billion (11.2 percent) in the fourth quarter from the 

level of the third quarter, but were $1.6 billion (13.1 

percent) less than in the fourth quarter of 2002. 

The improvement reflected a $1.9-billion (42.8-percent) decline in charge-offs of loans to commercial 

and industrial (C&I) borrowers compared to a year 

earlier. Charge-offs on leases also improved over 

year-earlier levels, declining by $395 million (61.3 

Chart 4 

percent). In contrast, charge-offs of residential 

mortgage loans were $477 million (93.7 percent) 

higher, and charge-offs of credit-card loans were 

$455 million (11.6 percent) higher. The amount of 

loans that were noncurrent—90 days or more past 

due or in nonaccrual status—declined by $1.3 billion (2.1 percent), thanks to a $4.4-billion (18.9­

percent) decline in noncurrent C&I loans. The 

amount of credit-card loans that were noncurrent 

registered a sizable increase during the fourth quarter, increasing by $2.3 billion (44.0 percent). Most 

of this increase occurred in loans that became 90 

days or more past due, which rose by $2.0 billion 

(45.8 percent). The amount of credit-card loans 

that were 30-89 days past due increased by $2.5 billion (41.0 percent) during the quarter. 

Capital and Reserves Increase at Year-end 

Total equity capital increased by $14.2 billion (1.7 

percent) in the fourth quarter, and the industry’s 

equity-to-assets ratio improved from 9.13 percent to 

9.15 percent. The risk-based capital ratios declined, 

because of growth of assets with higher risk weights 

during the quarter. Loss reserves increased by $580 

million (0.7 percent). This increase did not keep 

pace with the growth in total loans during the quarter, so the industry’s reserve ratio (reserves as a percentage of loans) declined from 1.59 percent to 1.57 

percent. However, the decline in noncurrent loans 

meant that the coverage ratio (reserves as a percentage of noncurrent loans) improved from 136.5 percent to 140.4 percent. 

Chart 5 

1 432 1 432 1 432 0 

10 

20 

30 

$ Billions 

Quarterly Net Charge-offs 

Noncurrent Loans 

21.5 

2.5 

19.0 

8.7 

1998 1999 2000 2001 2002 2003 

1 432 1 432 1 432

1993 1995 1997 1999 2001 2003 

55 

60 

65 

Efficiency Ratio (%)

 Assets < $1 Billion 

Assets > $1 Billion 

66 

55 

65 

63 

The Efficiency Gap Between Large and Small 

Institutions Continues to Widen 

C &ILoans Lead Improvement in Asset Quality 

ALL FDIC-INSURED INSTITUTIONS 3 FOURTH QUARTER 2003 
FDIC Quarterly Banking Profile 

Credit-Card and Home Equity Loans Lead Asset 

Growth 

Consumer loan demand remained strong in the 

fourth quarter. Industry assets rose by $130.7 billion 

(1.5 percent), as credit-card loans increased by 

$72.8 billion (27.3 percent) and home equity loans 

increased by $31.2 billion (9.9 percent), accounting 

for more than three-quarters of the growth in total 

assets. Residential mortgage loans fell by $43.4 billion (2.6 percent), but mortgage-backed securities 

increased by $30.0 billion (3.6 percent). Overall, 

mortgage-related assets increased by $21.7 billion 

during the fourth quarter, comprising 16.6 percent 

of the growth in total assets. For the full year, mortgage-related assets accounted for 40.1 percent of the 

increase in total industry assets. Commercial and 

industrial loans continued to decline, falling by $9.2 

billion (1.0 percent) during the fourth quarter. This 

is the twelfth consecutive quarter that C&I loans 

have declined. During that time, they have been 

reduced by $163.6 billion (15.1 percent). 

Deposit Growth Regains Some Momentum 

After increasing by only $6.4 billion in the third 

quarter, deposits at insured banks and thrifts 

increased by $103.0 billion (1.8 percent) during the 

fourth quarter. Savings deposits at commercial 

banks grew by $51.9 billion (2.3 percent), and 

deposits in banks’ foreign offices increased by $49.0 

Chart 6 

1987 1989 1991 1993 1995 1997 1999 2001 2003 

0 

2,000 

4,000 

6,000 

8,000 

$ Billions 

Savings Institutions 

Commercial Banks 

$1,474 

$7,603 

$9,077 

Industry Assets Now Exceed $9 Trillion 

billion (7.1 percent). Savings institutions increased 

their Federal Home Loan Bank (FHLB) borrowings 

by $11.8 billion (5.3 percent) during the quarter, 

while commercial banks’ FHLB borrowings 

increased by only $3.2 billion (1.3 percent). 

Number of Institutions Falls Below 9,200 

The number of insured institutions reporting financial results declined by 54 during the fourth quarter, 

from 9,236 to 9,182, bringing the total decline for 

the year to 172. There were 38 new institutions 

added during the quarter, while mergers absorbed 88 

institutions. In the fourth quarter, nine mutuallyowned savings institutions, with combined assets of 

$3.9 billion, converted to stock ownership. For all 

of 2003, there were 119 new charters, with 275 

institutions absorbed in mergers. One insured institution failed during the fourth quarter, bringing the 

total number of failures for the year to three. The 

number of institutions on the FDIC’s “Problem List” 

ended the year at 116, the same number as at the 

end of September. Total assets of “problem” institutions declined slightly, from $30.3 billion to $29.9 

billion. During the year, the number of “problem” 

institutions declined from 136 to 116, and assets of 

“problem” institutions fell from $38.9 billion to 

$29.9 billion. 

Chart 7 

The Number of Mergers Continued to 

Decline in 2003 

Number of Institutions 

1989 1991 1993 1995 1997 1999 2001 2003 

0 

200 

400 

600 

800 

New Charters 

Mergers 

Failures 119 

275 

3 

FOURTH QUARTER 2003 4 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

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

2003 2002 2001 2000 1999 1998 1997 

Return on assets (%) ............................................................... 1.38 1.30 1.14 1.14 1.26 1.16 1.18 

Return on equity (%) ............................................................... 15.04 14.14 12.97 13.53 14.71 13.50 14.03 

Core capital (leverage) ratio (%) ............................................. 7.88 7.87 7.78 7.71 7.80 7.59 7.62 

Noncurrent assets plus 

other real estate owned to assets (%) .................................. 0.75 0.90 0.87 0.71 0.63 0.66 0.71 

Net charge-offs to loans (%) .................................................... 0.78 0.97 0.83 0.59 0.53 0.59 0.57 

Asset growth rate (%) .............................................................. 7.59 7.21 5.44 8.41 5.40 8.05 7.80 

Net interest margin (%) ........................................................... 3.73 3.96 3.78 3.77 3.89 3.91 4.04 

Net operating income growth (%) ............................................ 15.88 18.51 -0.84 1.71 19.75 3.02 13.37 

Number of institutions reporting .............................................. 9,182 9,354 9,614 9,904 10,222 10,464 10,923 

Commercial banks ................................................................ 7,769 7,887 8,079 8,315 8,580 8,774 9,143 

Savings institutions ............................................................... 1,413 1,467 1,535 1,589 1,642 1,690 1,780 

Percentage of unprofitable institutions (%)............................... 5.69 6.67 8.23 7.53 7.64 5.97 4.72 

Number of problem institutions ............................................... 116 136 114 94 79 84 92 

Assets of problem institutions (in billions) ............................... $30 $39 $40 $24 $10 $11 $6 

Number of failed/assisted institutions ...................................... 3 11 4 7 8 3 1 

* Excludes insured branches of foreign banks (IBAs) 

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

(dollar figures in millions) 

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

4th Quarter 

2003 

3rd Quarter 

2003 

4th Quarter 

2002 

%Change 

02:4-03:4 

9,182 9,236 9,354 -1.8 

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

CONDITION DATA 

2,045,678 2,041,656 2,017,645 1.4 

Total assets ........................................................................................................... $9,076,777 $8,943,271 $8,436,191 7.6 

Loans secured by real estate ............................................................................. 3,143,051 3,124,993 2,849,764 10.3 

1-4 Family residential mortgages .................................................................... 1,610,710 1,653,979 1,513,206 6.4 

Commercial real estate ................................................................................... 681,699 665,757 627,591 8.6 

Construction and development ....................................................................... 272,172 263,685 244,889 11.1 

Home equity lines ............................................................................................ 346,087 314,876 256,453 35.0 

Commercial & industrial loans ............................................................................ 922,332 931,550 953,645 -3.3 

Loans to individuals ............................................................................................ 848,307 772,282 772,452 9.8 

Credit cards ..................................................................................................... 339,442 266,605 291,741 16.4 

Farm loans ......................................................................................................... 46,783 46,672 47,327 -1.1 

Other loans & leases .......................................................................................... 476,897 461,338 433,684 10.0 

Less: Unearned income ..................................................................................... 3,004 2,980 3,549 -15.4 

Total loans & leases ........................................................................................... 5,434,365 5,333,854 5,053,323 7.5 

Less: Reserve for losses .................................................................................... 85,532 84,949 85,235 0.3 

Net loans and leases .......................................................................................... 5,348,833 5,248,905 4,968,088 7.7 

Securities ........................................................................................................... 1,770,762 1,702,215 1,633,432 8.4 

Other real estate owned ..................................................................................... 5,337 5,520 5,255 1.5 

Goodwill and other intangibles ........................................................................... 189,456 170,395 153,101 23.7 

All other assets ................................................................................................... 1,762,389 1,816,237 1,676,314 5.1 

Total liabilities and capital ..................................................................................... 9,076,777 8,943,271 8,436,191 7.6 

Deposits ............................................................................................................. 5,954,288 5,851,075 5,568,490 6.9 

Domestic office deposits ................................................................................. 5,213,117 5,158,894 4,910,453 6.2 

Foreign office deposits .................................................................................... 741,171 692,181 658,037 12.6 

Other borrowed funds ........................................................................................ 1,736,050 1,688,565 1,570,904 10.5 

Subordinated debt .............................................................................................. 107,404 103,666 98,554 9.0 

All other liabilities ............................................................................................... 448,234 483 ,407 422,031 6.2 

Equity capital ...................................................................................................... 830,800 816,558 776,211 7.0 

Loans and leases 30-89 days past due ................................................................ 54,955 50,071 58,188 -5.6 

Noncurrent loans and leases ................................................................................ 60,916 62,226 68,882 -11.6 

Restructured loans and leases ............................................................................. 3,427 3,254 3,276 4.6 

Direct and indirect investments in real estate ....................................................... 731 727 712 2.7 

Mortgage-backed securities .................................................................................. 981,998 948,043 912,466 7.6 

Earning assets ...................................................................................................... 7,855,023 7,698,184 7,287,924 7.8 

FHLB advances .................................................................................................... 479,667 464,586 450,507 6.5 

Unused loan commitments ................................................................................... 5,830,225 5,889,682 5,634,630 3.5 

Trust assets .......................................................................................................... 12,984,784 11,777,852 11,008,281 18.0 

Assets securitized and sold** ................................................................................ 871,721 897,019 910,660 -4.3 

Notional amount of derivatives** ........................................................................... 71,369,157 67,788,459 56,292,849 26.8 

INCOME DATA 

4th Quarter 

2002 

%Change 

02:4-03:4 

Full Year 

2003 

Full Year 

2002 %Change 

4th Quarter 

2003 

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

From international operations ............................................................. 

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

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

Retained earnings .................................................................................... 

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

$404,592 $429,522 -5.8 $101,580 $106,586 -4.7 

122,626 152,899 -19.8 28,890 36,060 -19.9 

281,967 276,623 1.9 72,689 70,527 3.1 

37,262 51,498 -27.6 8,823 13,789 -36.0 

202,644 183,723 10.3 53,626 47,509 12.9 

279,652 263,720 6.0 72,949 70,620 3.3 

11,395 12,041 -5.4 741 4,127 -82.0 

58,881 52,014 13.2 14,555 12,260 18.7 

422 -49 N/M 398 -48 N/M 

120,634 105,106 14.8 31,128 25,446 22.3 

7,329 5,964 22.9 1,067 1,465 -37.3 

40,704 47,007 -13.4 10,637 12,238 -13.1 

90,529 75,460 20.0 28,135 20,327 38.4 

30,105 29,646 1.6 2,993 5,119 -41.5 

112,456 97,042 15.9 30,168 22,706 32.9 

** Commercial banks only. N/M - Not Meaningful 

ALL FDIC-INSURED INSTITUTIONS 5 FOURTH QUARTER 2003 
FDIC Quarterly Banking Profile 

TABLE III-A. Full Year 2003, All FDIC-Insured Institutions 

FULL YEAR 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

9,182 36 6 1,765 4,250 1,033 158 530 1,313 91 

Commercial banks .............................................. 7,769 34 6 1,761 3,873 253 119 456 1,194 73 

Savings institutions ............................................. 1,413 2 0 4 377 780 39 74 119 18 

Total assets (in billions) ......................................... $9,076.8 $348.4 $1,447.9 $129.0 $2,922.9 $1,658.3 $146.7 $60.9 $172.5 $2,190.1 

Commercial banks .............................................. 7,602.5 339.4 1,447.9 128.7 2,671.6 580.0 97.6 47.5 148.4 2,141.3 

Savings institutions ............................................. 1,474.3 9.0 0.0 0.3 251.3 1,078.2 49.1 13.5 24.1 48.8 

Total deposits (in billions) ...................................... 5,954.3 120.1 848.5 106.9 2,127.2 1,026.3 70.7 45.2 142.4 1,467.1 

Commercial banks .............................................. 5,028.9 115.3 848.5 106.6 1,958.2 365.2 40.0 35.0 122.9 1,437.3 

Savings institutions ............................................. 925.4 4.8 0.0 0.3 168.9 661.1 30.8 10.2 19.5 29.9 

Net income (in millions) ......................................... 120,634 12,506 15,351 1,514 36,320 22,265 1,860 1,114 1,788 27,916 

Commercial banks .............................................. 102,578 12,114 15,351 1,511 33,276 9,173 1,142 902 1,609 27,500 

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

Performance Ratios (%) 

18,056 392 0 3 3,044 13,093 718 212 179 416 

Yield on earning assets ......................................... 5.35 10.63 4.62 5.91 5.48 5.17 6.88 4.58 5.69 4.83 

Cost of funding earning assets .............................. 1.62 2.35 1.64 1.89 1.56 1.81 1.97 1.50 1.83 1.38 

Net interest margin ............................................. 3.73 8.27 2.98 4.02 3.92 3.36 4.91 3.08 3.86 3.45 

Noninterest income to assets ................................ 2.31 12.36 2.79 0.70 1.61 1.52 2.36 8.84 0.99 2.09 

Noninterest expense to assets .............................. 3.19 9.19 3.23 2.73 2.99 2.58 3.45 9.29 2.98 2.88 

Loan and lease loss provision to assets ................ 0.43 3.80 0.44 0.21 0.35 0.12 1.39 0.25 0.26 0.23 

Net operating income to assets ............................. 1.28 4.04 1.00 1.18 1.23 1.16 1.26 1.30 1.00 1.26 

Pretax return on assets ......................................... 2.05 6.41 1.59 1.48 1.87 2.15 2.08 2.57 1.37 1.97 

Return on assets ................................................... 1.38 4.08 1.08 1.21 1.29 1.38 1.31 1.82 1.06 1.33 

Return on equity .................................................... 15.04 24.84 15.00 11.19 13.99 15.08 17.56 11.43 10.05 14.64 

Net charge-offs to loans and leases ...................... 0.78 5.22 1.37 0.27 0.46 0.18 2.08 1.21 0.38 0.62 

Loan and lease loss provision to net charge-offs .. 91.54 97.10 79.35 125.88 114.37 96.80 82.59 74.22 119.74 67.41 

Efficiency ratio ....................................................... 56.59 45.33 62.12 61.91 57.05 56.43 50.13 79.52 65.47 56.70 

% of unprofitable institutions ................................. 5.69 2.78 0.00 2.55 6.82 5.03 3.16 12.08 4.80 2.20 

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

Condition Ratios(%) 

58.75 63.89 66.67 51.22 67.93 50.92 57.59 40.00 52.78 59.34 

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

Loss allowance to: 

86.54 84.51 78.17 91.59 90.04 89.84 91.94 88.04 91.77 84.11 

Loans and leases ............................................... 1.57 4.80 2.28 1.52 1.47 0.72 1.70 1.77 1.38 1.51 

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

Noncurrent assets plus 

140.41 236.49 102.23 132.89 166.46 75.65 158.24 182.42 130.24 158.47 

other real estate owned to assets ...................... 0.75 1.62 0.93 0.80 0.68 0.73 0.99 0.34 0.71 0.59 

Equity capital ratio ................................................. 9.15 16.04 7.39 10.64 9.24 9.10 7.30 16.74 10.44 8.87 

Core capital (leverage) ratio .................................. 7.88 14.64 6.33 10.11 8.13 7.36 7.60 14.45 9.93 7.47 

Tier 1 risk-based capital ratio ................................ 10.47 12.19 8.84 14.78 10.13 11.81 9.18 32.49 16.67 9.80 

Total risk-based capital ratio ................................. 13.00 15.37 12.11 15.91 12.25 13.93 12.34 33.69 17.89 12.68 

Net loans and leases to deposits .......................... 89.83 211.94 65.84 72.47 90.74 109.78 168.67 35.47 66.61 79.83 

Net loans to total assets ........................................ 58.93 73.04 38.58 60.03 66.04 67.94 81.32 26.30 54.97 53.48 

Domestic deposits to total assets .......................... 

Structural Changes 

57.43 30.28 25.32 82.83 70.77 60.14 48.10 73.05 82.49 59.86 

New Charters ..................................................... 119 0 2 0 27 4 0 85 1 0 

Institutions absorbed by mergers ....................... 275 1 27 1 163 38 4 2 14 25 

Failed Institutions ............................................... 

PRIOR FULL YEARS 

(The way it was...) 

3 0 1 0 1 1 0 0 0 0 

Number of institutions ............................. 2002 9,354 40 5 1,823 4,070 1,107 196 488 1,525 100 

.............................................. 2000 9,904 56 7 1,977 3,954 1,266 288 512 1,755 89 

.............................................. 1998 10,464 69 11 2,279 3,372 1,452 273 652 2,264 92 

Total assets (in billions) .......................... 2002 $8,436.2 $299.3 $1,273.5 $123.8 $2,960.4 $1,342.3 $166.5 $60.1 $197.4 $2,013.0 

.............................................. 2000 7,462.9 295.1 1,229.5 120.4 3,823.3 1,000.2 87.8 50.8 205.4 650.5 

.............................................. 1998 6,531.1 258.0 1,443.9 125.0 2,786.3 1,078.6 81.4 67.9 270.4 419.6 

Return on assets (%) .............................. 2002 1.30 3.61 0.74 1.24 1.30 1.32 1.35 1.08 1.14 1.33 

.............................................. 2000 1.14 3.00 1.06 1.22 1.12 0.96 1.09 1.42 1.13 0.91 

.............................................. 1998 1.16 2.88 0.60 1.20 1.29 1.05 1.25 1.70 1.13 1.40 

Net charge-offs to loans & leases (%) ....... 2002 0.97 6.12 1.77 0.29 0.65 0.20 1.07 1.36 0.35 0.81 

.............................................. 2000 0.59 3.72 0.51 0.23 0.50 0.11 0.49 1.62 0.28 0.62 

.............................................. 1998 

Noncurrent assets plus 

0.59 4.35 0.58 0.24 0.36 0.19 0.65 0.83 0.35 0.60 

OREO to assets (%) ............................ 2002 0.90 1.68 1.19 0.85 0.87 0.71 1.28 0.59 0.70 0.75 

.............................................. 2000 0.71 1.56 0.66 0.69 0.76 0.48 1.11 0.22 0.57 0.58 

.............................................. 1998 0.66 1.75 0.65 0.74 0.62 0.60 1.01 0.31 0.59 0.53 

Equity capital ratio (%) ............................ 2002 9.20 15.49 7.14 10.76 9.36 9.08 7.35 17.18 10.62 9.10 

.............................................. 2000 8.49 12.25 6.73 10.43 8.66 8.28 7.94 16.15 10.30 7.90 

.............................................. 1998 8.52 13.51 6.71 10.60 8.79 8.30 8.50 14.23 10.01 8.07 

* See Table IV-A (page 8) for explanations. 

FOURTH QUARTER 2003 6 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE III-A. Full Year 2003, All FDIC-Insured Institutions 

FULL YEAR 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less than 

$100 Million 

$100 Million 

to $1 Billion 

$1 Billion to 

$10 Billion 

Greater than 

$10 Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

9,182 4,390 4,211 471 110 1,173 1,227 2,011 2,133 1,867 771 

Commercial banks .............................................. 7,769 3,911 3,434 341 83 612 1,071 1,650 2,020 1,732 684 

Savings institutions ............................................. 1,413 479 777 130 27 561 156 361 113 135 87 

Total assets (in billions) ......................................... $9,076.8 $225.6 $1,160.6 $1,312.6 $6,377.9 $3,084.8 $1,882.7 $1,695.3 $456.3 $563.4 $1,394.3 

Commercial banks .............................................. 7,602.5 200.7 910.0 947.3 5,544.5 2,557.4 1,751.9 1,551.7 411.5 471.5 858.5 

Savings institutions ............................................. 1,474.3 24.9 250.6 365.3 833.4 527.5 130.8 143.6 44.8 91.8 535.8 

Total deposits (in billions) ...................................... 5,954.3 188.7 927.0 882.1 3,956.5 1,959.5 1,288.2 1,102.4 291.0 424.1 889.0 

Commercial banks .............................................. 5,028.9 169.0 736.8 645.8 3,477.3 1,609.9 1,196.0 998.0 263.0 371.2 590.8 

Savings institutions ............................................. 925.4 19.7 190.2 236.3 479.3 349.6 92.2 104.4 28.1 53.0 298.2 

Net income (in millions) ......................................... 120,634 2,087 13,211 17,673 87,662 37,883 24,791 21,655 7,196 7,505 21,603 

Commercial banks .............................................. 102,578 1,824 11,075 13,177 76,502 32,156 23,514 19,932 6,822 5,952 14,202 

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

Performance Ratios (%) 

18,056 263 2,136 4,497 11,160 5,727 1,277 1,723 374 1,553 7,401 

Yield on earning assets ......................................... 5.35 5.87 5.82 5.48 5.21 5.14 5.33 5.22 6.25 5.64 5.55 

Cost of funding earning assets .............................. 1.62 1.79 1.82 1.68 1.56 1.74 1.59 1.66 1.66 1.56 1.38 

Net interest margin ............................................. 3.73 4.07 4.00 3.80 3.64 3.41 3.73 3.56 4.59 4.08 4.17 

Noninterest income to assets ................................ 2.31 1.43 1.46 1.93 2.58 2.68 2.15 1.94 2.73 1.90 2.21 

Noninterest expense to assets .............................. 3.19 3.71 3.33 3.10 3.17 3.27 3.17 2.86 3.90 3.56 3.08 

Loan and lease loss provision to assets ................ 0.43 0.25 0.28 0.36 0.47 0.49 0.26 0.47 0.70 0.28 0.43 

Net operating income to assets ............................. 1.28 0.90 1.10 1.28 1.33 1.19 1.28 1.19 1.58 1.28 1.52 

Pretax return on assets .......................................... 2.05 1.27 1.63 2.11 2.14 1.91 2.03 1.91 2.34 1.86 2.55 

Return on assets .................................................... 1.38 0.95 1.18 1.42 1.42 1.27 1.38 1.31 1.63 1.37 1.62 

Return on equity .................................................... 15.04 8.19 11.79 13.90 16.31 14.24 15.32 15.31 15.39 14.35 16.13 

Net charge-offs to loans and leases ...................... 0.78 0.30 0.36 0.53 0.93 1.15 0.55 0.71 1.09 0.40 0.58 

Loan and lease loss provision to net charge-offs .. 91.54 134.93 118.72 109.86 86.70 85.27 78.19 101.33 92.90 113.09 105.97 

Efficiency ratio ....................................................... 56.59 71.68 64.51 56.56 54.80 57.82 58.57 55.02 55.34 62.89 51.30 

% of unprofitable institutions .................................. 5.69 9.64 2.16 1.49 0.91 5.80 9.21 4.97 3.05 5.46 9.60 

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

Condition Ratios (%) 

58.75 52.82 63.76 66.88 68.18 60.95 65.77 57.48 54.95 54.04 69.39 

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

Loss Allowance to: 

86.54 91.51 91.79 90.52 84.59 83.78 85.18 88.92 89.75 90.17 89.06 

Loans and leases ................................................ 1.57 1.40 1.33 1.49 1.65 1.93 1.33 1.54 2.12 1.34 1.25 

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

Noncurrent assets plus 

140.41 128.42 153.76 165.13 134.98 131.28 167.68 131.33 199.83 135.04 129.14 

other real estate owned to assets ....................... 0.75 0.83 0.68 0.62 0.78 0.78 0.56 0.86 0.84 0.76 0.76 

Equity capital ratio ................................................. 9.15 11.49 10.06 10.35 8.66 9.05 8.78 8.49 10.59 9.61 10.04 

Core capital (leverage) ratio .................................. 7.88 11.11 9.50 9.16 7.19 7.74 7.41 7.86 9.01 8.69 8.14 

Tier 1 risk-based capital ratio ................................. 10.47 17.10 13.74 13.18 9.22 10.61 9.54 9.79 11.79 12.67 11.10 

Total risk-based capital ratio .................................. 13.00 18.21 14.96 14.87 12.16 13.29 12.11 12.66 13.51 14.08 13.46 

Net loans and leases to deposits ........................... 89.83 71.84 79.98 89.98 92.96 76.26 87.71 98.33 107.52 79.59 111.39 

Net loans to total assets ........................................ 58.93 60.08 63.88 60.47 57.67 48.44 60.01 63.94 68.58 59.92 71.02 

Domestic deposits to total assets .......................... 

Structural Changes 

57.43 83.62 79.78 66.43 50.59 46.19 63.78 59.84 63.78 75.02 61.63 

New Charters ...................................................... 119 115 3 1 0 9 36 7 13 20 34 

Institutions absorbed by mergers ........................ 275 121 122 26 6 48 42 58 44 43 40 

Failed Institutions ................................................ 

PRIOR FULL YEARS 

(The way it was...) 

3 2 1 0 0 1 0 1 0 0 1 

Number of institutions ............................. 2002 9,354 4,681 4,117 450 106 1,212 1,237 2,055 2,167 1,901 782 

.............................................. 2000 9,904 5,464 3,898 437 105 1,292 1,307 2,197 2,268 2,014 826 

.............................................. 1998 10,464 6,110 3,817 450 87 1,350 1,341 2,346 2,390 2,180 857 

Total assets (in billions) .......................... 2002 $8,436.2 $237.9 $1,124.8 $1,279.0 $5,794.5 $2,893.0 $1,711.1 $1,572.1 $440.1 $581.5 $1,238.3 

.............................................. 2000 7,462.9 262.1 1,018.5 1,199.1 4,983.2 2,580.7 1,570.8 1,255.4 461.9 561.2 1,032.9 

.............................................. 1998 6,531.1 288.6 972.0 1,259.8 4,010.6 2,282.7 1,141.4 1,065.4 413.2 548.8 1,079.6 

Return on assets (%) .............................. 2002 1.30 1.00 1.16 1.44 1.31 1.11 1.34 1.29 1.58 1.41 1.58 

.............................................. 2000 1.14 0.95 1.15 1.20 1.14 1.23 1.02 1.02 1.33 1.04 1.23 

.............................................. 1998 1.16 1.09 1.21 1.41 1.07 1.05 1.29 1.20 1.45 1.18 1.08 

Net charge-offs to loans & leases (%) ...... 2002 0.97 0.32 0.41 0.69 1.18 1.45 0.71 0.77 1.19 0.44 0.81 

.............................................. 2000 0.59 0.37 0.27 0.59 0.67 0.67 0.61 0.39 0.76 0.37 0.67 

.............................................. 1998 

Noncurrent assets plus 

0.59 0.28 0.36 0.83 0.59 0.79 0.44 0.39 0.68 0.43 0.64 

OREO to assets (%) ............................ 2002 0.90 0.85 0.74 0.69 0.98 1.01 0.78 1.00 0.82 0.81 0.74 

.............................................. 2000 0.71 0.66 0.59 0.67 0.75 0.71 0.82 0.74 0.62 0.66 0.62 

.............................................. 1998 0.66 0.72 0.64 0.75 0.64 0.78 0.54 0.58 0.57 0.63 0.67 

Equity capital ratio (%) ............................ 2002 9.20 11.29 10.06 10.06 8.76 8.85 9.37 8.58 10.33 9.60 9.98 

.............................................. 2000 8.49 11.33 9.82 8.94 7.96 8.31 8.61 7.98 9.48 8.78 8.75 

.............................................. 1998 8.52 11.13 9.84 9.36 7.76 8.13 9.17 8.42 8.80 8.73 8.58 

* See Table IV-A (page 9) for explanations. 

ALL FDIC-INSURED INSTITUTIONS 7 FOURTH QUARTER 2003 
FDIC Quarterly Banking Profile 

TABLE IV-A. Fourth Quarter 2003, All FDIC-Insured Institutions 

FOURTH QUARTER 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

9,182 36 6 1,765 4,250 1,033 158 530 1,313 91 

Commercial banks .............................................. 7,769 34 6 1,761 3,873 253 119 456 1,194 73 

Savings institutions ............................................. 1,413 2 0 4 377 780 39 74 119 18 

Total assets (in billions) ......................................... $9,076.8 $348.4 $1,447.9 $129.0 $2,922.9 $1,658.3 $146.7 $60.9 $172.5 $2,190.1 

Commercial banks .............................................. 7,602.5 339.4 1,447.9 128.7 2,671.6 580.0 97.6 47.5 148.4 2,141.3 

Savings institutions ............................................. 1,474.3 9.0 0.0 0.3 251.3 1,078.2 49.1 13.5 24.1 48.8 

Total deposits (in billions) ...................................... 5,954.3 120.1 848.5 106.9 2,127.2 1,026.3 70.7 45.2 142.4 1,467.1 

Commercial banks .............................................. 5,028.9 115.3 848.5 106.6 1,958.2 365.2 40.0 35.0 122.9 1,437.3 

Savings institutions ............................................. 925.4 4.8 0.0 0.3 168.9 661.1 30.8 10.2 19.5 29.9 

Net income (in millions) ......................................... 31,128 3,826 4,390 338 8,855 5,365 389 497 403 7,065 

Commercial banks .............................................. 26,595 3,499 4,390 337 8,096 2,282 220 430 364 6,977 

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

Performance Ratios (annualized, %) 

4,533 327 0 1 759 3,084 169 67 39 88 

Yield on earning assets ......................................... 5.24 11.01 4.58 5.75 5.35 4.86 6.62 4.36 5.51 4.76 

Cost of funding earning assets .............................. 1.49 2.22 1.53 1.70 1.41 1.65 1.79 1.34 1.65 1.28 

Net interest margin ............................................. 3.75 8.78 3.06 4.05 3.93 3.21 4.83 3.03 3.85 3.48 

Noninterest income to assets ................................ 2.39 13.28 2.95 0.70 1.50 1.73 2.39 9.14 0.95 2.06 

Noninterest expense to assets .............................. 3.25 9.27 3.29 2.93 2.97 2.62 3.43 9.45 3.09 2.99 

Loan and lease loss provision to assets ................ 0.39 4.32 0.34 0.22 0.33 0.02 1.73 0.07 0.27 0.14 

Net operating income to assets ............................. 1.34 4.50 1.23 1.05 1.20 1.25 1.03 1.46 0.89 1.26 

Pretax return on assets ......................................... 2.03 7.36 1.68 1.27 1.77 1.99 1.69 4.14 1.19 1.91 

Return on assets ................................................... 1.38 4.65 1.22 1.06 1.22 1.28 1.07 3.28 0.94 1.31 

Return on equity .................................................... 15.16 28.18 16.66 9.86 13.26 14.29 14.31 20.11 8.96 14.73 

Net charge-offs to loans and leases ...................... 0.79 5.31 1.36 0.43 0.48 0.13 2.76 0.52 0.45 0.56 

Loan and lease loss provision to net charge-offs .. 82.95 107.31 63.54 83.82 102.87 21.39 76.32 46.76 105.17 44.47 

Efficiency ratio ....................................................... 56.62 42.65 60.80 66.19 57.73 56.28 49.90 79.16 68.56 58.99 

% of unprofitable institutions ................................. 10.03 8.33 0.00 10.42 9.27 9.20 12.03 18.30 9.14 9.89 

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

Structural Changes 

52.66 63.89 83.33 54.33 55.44 43.37 37.97 48.30 52.02 49.45 

New Charters ..................................................... 38 0 1 0 9 1 0 27 0 0 

Institutions absorbed by mergers ....................... 88 1 9 0 47 16 0 0 3 12 

Failed Institutions ............................................... 

PRIOR FOURTH QUARTERS 

(The way it was...) 

1 0 0 0 0 1 0 0 0 0 

Return on assets (%) .............................. 2002 1.22 3.78 0.43 1.02 1.28 1.39 1.41 -0.80 1.02 1.22 

.............................................. 2000 1.09 3.21 0.93 0.96 1.09 0.86 1.01 1.22 0.99 0.85 

.............................................. 1998 1.05 3.34 0.41 0.95 1.27 0.79 1.11 1.32 0.99 1.09 

Net charge-offs to loans & leases (%) ...... 2002 0.98 5.36 1.73 0.45 0.66 0.29 1.15 2.33 0.51 0.90 

.............................................. 2000 0.81 3.93 0.68 0.39 0.78 0.13 0.92 0.50 0.37 0.69 

.............................................. 1998 0.64 4.33 0.52 0.43 0.47 0.19 0.76 0.83 0.45 0.60 

*Asset Concentration Group Definitions (Groups are hierarchical and mutually exclusive): 

Credit-Card Banks - Institutions whose credit-card loans plus securitized receivables exceed 50 percent of total assets plus securitized receivables.
 

International Banks - Banks with assets greater than $10 billion and more than 25 percent of total assets in foreign offices.
 

Agricultural Banks - Banks whose agricultural production loans plus real estate loans secured by farmland exceed 25 percent of the total loans and leases.
 

Commercial Lenders - Institutions whose commercial and industrial loans, plus real estate construction and development loans, plus loans
 

secured by commercial real estate properties exceed 25 percent of total assets. 

Mortgage Lenders - Institutions whose residential mortgage loans, plus mortgage-backed securities, exceed 50 percent of total assets. 

Consumer Lenders - Institutions whose residential mortgage loans, plus credit-card loans, plus other loans to individuals, exceed 50 percent of total assets. 

Other Specialized < $1 Billion - Institutions with assets less than $1 billion, whose loans and leases are less than 40 persent of total assets. 

All Other < $1 billion - Institutions with assets less than $1 billion that do not meet any of the definitions above, they have significant lending 

activity with no identified asset concentrations. 

All Other > $1 billion - Institutions with assets greater than $1 billion that do not meet any of the definitions above, they have significant lending 

activity with no identified asset concentrations. 

FOURTH QUARTER 2003 8 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE IV-A. Fourth Quarter 2003, All FDIC-Insured Institutions 

FOURTH QUARTER 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less than 

$100 Million 

$100 Million 

to $1 Billion 

$1 Billion to 

$10 Billion 

Greater than 

$10 Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

9,182 4,390 4,211 471 110 1,173 1,227 2,011 2,133 1,867 771 

Commercial banks .............................................. 7,769 3,911 3,434 341 83 612 1,071 1,650 2,020 1,732 684 

Savings institutions ............................................. 1,413 479 777 130 27 561 156 361 113 135 87 

Total assets (in billions) ......................................... $9,076.8 $225.6 $1,160.6 $1,312.6 $6,377.9 $3,084.8 $1,882.7 $1,695.3 $456.3 $563.4 $1,394.3 

Commercial banks .............................................. 7,602.5 200.7 910.0 947.3 5,544.5 2,557.4 1,751.9 1,551.7 411.5 471.5 858.5 

Savings institutions ............................................. 1,474.3 24.9 250.6 365.3 833.4 527.5 130.8 143.6 44.8 91.8 535.8 

Total deposits (in billions) ...................................... 5,954.3 188.7 927.0 882.1 3,956.5 1,959.5 1,288.2 1,102.4 291.0 424.1 889.0 

Commercial banks .............................................. 5,028.9 169.0 736.8 645.8 3,477.3 1,609.9 1,196.0 998.0 263.0 371.2 590.8 

Savings institutions ............................................. 925.4 19.7 190.2 236.3 479.3 349.6 92.2 104.4 28.1 53.0 298.2 

Net income (in millions) ......................................... 31,128 472 3,361 4,588 22,707 10,265 6,237 5,538 1,843 1,760 5,485 

Commercial banks .............................................. 26,595 410 2,851 3,364 19,970 8,855 5,953 4,931 1,755 1,390 3,711 

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

Performance Ratios (annualized, %) 

4,533 62 509 1,224 2,737 1,410 284 607 88 370 1,774 

Yield on earning assets ......................................... 5.24 5.75 5.65 5.35 5.11 5.06 5.27 5.05 6.21 5.47 5.38 

Cost of funding earning assets .............................. 1.49 1.62 1.65 1.54 1.44 1.61 1.48 1.53 1.53 1.41 1.23 

Net interest margin ............................................. 3.75 4.13 4.00 3.81 3.67 3.45 3.79 3.51 4.68 4.07 4.16 

Noninterest income to assets ................................ 2.39 1.45 1.41 2.04 2.67 2.80 2.04 1.99 2.96 1.63 2.53 

Noninterest expense to assets .............................. 3.25 3.88 3.38 3.16 3.21 3.33 3.19 2.89 4.10 3.34 3.26 

Loan and lease loss provision to assets ................ 0.39 0.27 0.28 0.38 0.42 0.43 0.21 0.48 0.74 0.28 0.38 

Net operating income to assets ............................. 1.34 0.81 1.04 1.30 1.42 1.32 1.27 1.18 1.62 1.22 1.64 

Pretax return on assets .......................................... 2.03 1.12 1.57 2.13 2.13 1.96 1.97 1.90 2.36 1.72 2.47 

Return on assets .................................................... 1.38 0.84 1.17 1.42 1.44 1.34 1.34 1.32 1.64 1.26 1.58 

Return on equity .................................................... 15.16 7.32 11.65 13.81 16.60 14.92 15.26 15.45 15.38 13.15 15.93 

Net charge-offs to loans and leases ...................... 0.79 0.43 0.47 0.59 0.91 1.06 0.49 0.88 1.42 0.48 0.54 

Loan and lease loss provision to net charge-offs .. 82.95 105.31 91.21 105.67 78.55 82.22 70.33 83.41 74.49 97.65 100.13 

Efficiency ratio ....................................................... 56.62 73.82 66.03 56.40 54.59 57.25 59.61 55.27 55.57 62.40 51.70 

% of unprofitable institutions .................................. 10.03 16.10 4.46 5.10 1.82 8.61 11.90 8.80 9.89 10.50 11.67 

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

Structural Changes 

52.66 50.39 54.55 55.84 57.27 53.28 59.01 45.25 52.18 54.26 58.37 

New Charters ...................................................... 38 38 0 0 0 2 10 2 4 8 12 

Institutions absorbed by mergers ........................ 88 34 34 17 3 17 16 19 9 14 13 

Failed Institutions ................................................ 

PRIOR FOURTH QUARTERS 

(The way it was...) 

1 1 0 0 0 1 0 0 0 0 0 

Return on assets (%) .............................. 2002 1.22 0.84 0.99 1.47 1.22 0.95 1.27 1.17 1.57 1.36 1.66 

.............................................. 2000 1.09 0.74 1.05 1.02 1.14 1.22 1.03 0.93 1.26 0.89 1.10 

.............................................. 1998 1.05 0.81 1.13 1.27 0.98 1.00 1.34 1.03 1.42 1.04 0.73 

Net charge-offs to loans & leases (%) ..... 2002 0.98 0.47 0.54 0.66 1.17 1.36 0.81 0.79 1.21 0.56 0.86 

.............................................. 2000 0.81 0.41 0.37 0.75 0.94 0.79 1.16 0.53 0.85 0.53 0.77 

.............................................. 1998 0.64 0.43 0.45 0.88 0.62 0.81 0.49 0.51 0.75 0.58 0.61 

*Regions: 

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

Rhode Island, Vermont, U.S. Virgin Islands 

Altanta - Alabama, Florida, Georgia, North Carolina, South Carolina, Virginia, West Virginia 

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

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

Dallas - Arkansas, Colorado, Louisiana, Mississippi, New Mexico, Oklahoma, Tenessee, Texas 

San Francisco - Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Pacific Islands, Utah, Washington, Wyoming 

ALL FDIC-INSURED INSTITUTIONS 9 FOURTH QUARTER 2003 
FDIC Quarterly Banking Profile 

TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

December 31, 2003 All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ...................................... 0.89 0.72 1.55 1.15 0.77 0.99 0.86 1.43 1.51 0.77 

Construction and development .................................... 0.71 0.00 4.61 1.17 0.72 0.68 0.70 1.66 1.18 0.41 

Commercial real estate ................................................ 0.56 0.28 1.51 1.01 0.56 0.46 0.66 0.88 1.14 0.42 

Multifamily residential real estate ................................. 0.31 0.00 1.00 0.57 0.35 0.19 3.42 0.84 0.99 0.20 

Home equity loans ....................................................... 0.39 0.60 0.39 0.69 0.41 0.24 0.04 0.35 0.59 0.59 

Other 1-4 family residential .......................................... 1.21 1.80 1.65 1.83 1.25 1.22 1.25 1.83 1.83 0.96 

Commercial and industrial loans ..................................... 0.74 1.63 0.81 1.55 0.88 0.54 1.93 1.69 1.47 0.36 

Loans to individuals ......................................................... 2.07 2.60 2.41 2.32 1.66 1.18 1.99 2.58 2.45 1.57 

Credit card loans .......................................................... 2.56 2.66 2.58 2.51 2.40 1.44 1.97 5.30 2.67 2.09 

Other loans to individuals ............................................. 1.74 1.84 2.30 2.31 1.59 1.15 2.00 2.32 2.44 1.47 

All other loans and leases (including farm) ..................... 0.49 0.03 0.69 0.74 0.74 0.62 0.51 0.78 0.66 0.19 

Total loans and leases .................................................... 

Percent of Loans Noncurrent** 

1.01 2.44 1.39 1.20 0.87 0.97 1.47 1.58 1.59 0.67 

All real estate loans ......................................................... 0.83 0.40 1.30 1.03 0.75 0.97 1.20 0.85 1.02 0.63 

Construction and development .................................... 0.73 0.01 2.22 1.15 0.63 0.91 1.29 1.17 1.76 0.86 

Commercial real estate ................................................ 0.89 0.56 1.92 1.22 0.83 0.91 1.28 0.85 1.35 0.96 

Multifamily residential real estate ................................. 0.29 0.00 0.63 1.00 0.33 0.19 0.29 0.54 0.95 0.22 

Home equity loans ....................................................... 0.21 0.21 0.12 0.19 0.22 0.13 0.16 0.21 0.24 0.32 

Other 1-4 family residential .......................................... 0.96 1.76 1.06 0.96 0.92 1.15 1.66 0.88 0.87 0.52 

Commercial and industrial loans ..................................... 2.05 1.28 4.23 1.87 1.40 1.30 2.06 1.61 1.64 2.18 

Loans to individuals ......................................................... 1.46 2.18 2.59 0.87 0.63 0.29 0.76 1.12 0.89 0.73 

Credit card loans .......................................................... 2.18 2.24 2.43 1.89 1.50 1.03 1.67 4.93 2.16 1.88 

Other loans to individuals ............................................. 0.97 1.34 2.69 0.84 0.54 0.23 0.57 0.75 0.81 0.52 

All other loans and leases (including farm) ..................... 0.66 0.00 0.61 1.06 0.81 0.79 2.07 0.78 0.86 0.56 

Total loans and leases .................................................... 

Percent of Loans Charged-off (net, YTD) 

1.12 2.03 2.23 1.15 0.88 0.95 1.07 0.97 1.06 0.95 

All real estate loans ......................................................... 0.13 0.17 0.13 0.09 0.13 0.06 0.99 0.08 0.10 0.19 

Construction and development .................................... 0.13 -0.21 0.41 0.20 0.11 0.14 -0.04 0.13 0.28 0.19 

Commercial real estate ................................................ 0.12 0.00 0.04 0.16 0.14 0.08 0.07 0.04 0.13 0.09 

Multifamily residential real estate ................................. 0.02 0.08 0.15 0.17 0.02 0.01 0.65 0.04 0.04 0.00 

Home equity loans ....................................................... 0.18 0.18 0.04 0.09 0.15 0.06 0.74 -0.01 0.05 0.27 

Other 1-4 family residential .......................................... 0.13 0.23 0.04 0.09 0.15 0.05 1.40 0.10 0.08 0.20 

Commercial and industrial loans ..................................... 1.25 5.62 1.66 0.74 0.99 0.77 3.34 0.72 0.90 1.34 

Loans to individuals ......................................................... 2.96 5.70 3.07 0.73 1.40 1.38 2.91 6.37 1.19 1.50 

Credit card loans .......................................................... 5.61 5.78 4.92 4.00 4.85 2.78 8.24 24.84 5.81 4.94 

Other loans to individuals ............................................. 1.43 4.73 2.13 0.63 1.07 1.26 1.71 0.80 0.90 0.92 

All other loans and leases (including farm) ..................... 0.40 0.00 0.38 0.00 0.58 0.41 1.25 0.44 0.74 0.34 

Total loans and leases .................................................... 

Loans Outstanding (in billions) 

0.80 5.20 1.40 0.30 0.50 0.20 2.10 1.20 0.40 0.60 

All real estate loans ......................................................... $3,143.1 $13.2 $115.9 $41.0 $1,263.2 $986.8 $52.4 $11.1 $66.3 $593.1 

Construction and development .................................... 272.2 0.2 1.8 2.0 193.1 30.1 1.9 0.9 3.6 38.7 

Commercial real estate ................................................ 681.7 0.3 8.1 9.8 456.5 71.2 7.0 3.1 15.5 110.1 

Multifamily residential real estate ................................. 151.9 0.0 1.3 0.7 86.0 47.3 0.6 0.4 1.3 14.2 

Home equity loans ....................................................... 346.1 11.1 12.3 0.7 126.0 104.1 13.7 0.5 2.8 75.0 

Other 1-4 family residential .......................................... 1,610.7 1.5 65.8 13.2 379.1 732.5 28.8 5.9 39.2 344.7 

Commercial and industrial loans ..................................... 922.3 9.6 143.7 11.3 420.2 70.1 8.9 1.9 10.3 246.4 

Loans to individuals ......................................................... 848.3 241.1 165.5 6.5 169.2 61.4 57.8 2.3 13.6 130.9 

Credit card loans .......................................................... 339.4 224.7 62.9 0.2 15.4 5.3 10.2 0.2 0.8 19.7 

Other loans to individuals ............................................. 508.9 16.4 102.6 6.3 153.8 56.2 47.5 2.1 12.8 111.1 

All other loans and leases (including farm) ..................... 523.7 3.4 147.9 19.9 107.5 16.5 2.4 1.0 6.1 219.0 

Total loans and leases .................................................... 

Memo: Other Real Estate Owned (in millions) 

5,437.4 267.3 573.0 78.7 1,960.1 1,134.9 121.4 16.3 96.3 1,189.3 

All other real estate owned .............................................. 5,336.8 7.3 288.6 134.3 2,614.9 1,266.7 157.7 38.2 196.0 633.2 

Construction and development .................................... 685.0 0.0 0.0 8.1 499.5 107.7 2.2 1.4 19.5 46.7 

Commercial real estate ................................................ 1,822.4 0.2 72.4 53.4 1,140.3 196.8 7.2 18.7 74.8 258.6 

Multifamily residential real estate ................................. 119.1 0.0 4.0 4.0 89.8 3.4 0.2 1.3 4.8 11.7 

1-4 family residential .................................................... 2,490.5 7.1 125.2 39.7 834.9 954.4 147.7 14.9 88.7 277.9 

Farmland ...................................................................... 109.1 0.0 0.0 29.1 53.8 6.8 0.7 1.9 8.3 8.5 

* See Table IV-A (page 8) for explanations.
 

** 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.
 

FOURTH QUARTER 2003 10 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

December 31, 2003 

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less than 

$100 Million 

$100 Million 

to $1 Billion 

$1 Billion to 

$10 Billion 

Greater than 

$10 Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ............................. 0.89 1.36 0.91 0.68 0.93 0.85 0.77 1.11 0.77 1.09 0.84 

Construction and development ........................... 0.71 0.90 0.76 0.67 0.69 0.84 0.45 0.90 0.59 0.84 0.76 

Commercial real estate ....................................... 0.56 0.96 0.61 0.55 0.49 0.55 0.49 0.73 0.58 0.74 0.32 

Multifamily residential real estate ........................ 0.31 0.69 0.50 0.20 0.30 0.13 0.34 0.80 0.41 0.55 0.14 

Home equity loans .............................................. 0.39 0.57 0.37 0.37 0.39 0.38 0.40 0.46 0.52 0.46 0.27 

Other 1-4 family residential ................................. 1.21 1.97 1.37 0.90 1.22 1.03 1.08 1.65 1.02 1.59 1.17 

Commercial and industrial loans ............................ 0.74 1.54 1.10 1.00 0.61 0.69 0.53 0.83 1.06 1.08 0.74 

Loans to individuals ............................................... 2.07 2.69 2.24 2.31 2.01 2.17 1.95 1.86 2.58 1.74 1.96 

Credit card loans ................................................. 2.56 2.18 4.85 3.58 2.39 2.45 3.29 3.11 2.98 1.01 2.23 

Other loans to individuals ................................... 1.74 2.71 1.86 1.63 1.71 1.92 1.64 1.57 1.66 1.89 1.60 

All other loans and leases (including farm) ............ 0.49 0.71 0.70 0.43 0.47 0.63 0.19 0.44 0.46 0.74 0.67 

Total loans and leases ........................................... 

Percent of Loans Noncurrent** 

1.01 1.46 1.03 0.92 1.01 1.08 0.81 1.05 1.20 1.15 0.98 

All real estate loans ............................................... 0.83 0.97 0.78 0.74 0.87 0.76 0.55 1.20 0.65 0.97 0.87 

Construction and development ........................... 0.73 0.86 0.84 0.74 0.66 0.73 0.55 0.99 0.75 0.68 0.74 

Commercial real estate ....................................... 0.89 1.06 0.83 0.90 0.91 0.79 0.72 1.26 0.76 1.05 0.71 

Multifamily residential real estate ........................ 0.29 0.55 0.42 0.39 0.20 0.17 0.20 0.65 0.53 0.90 0.11 

Home equity loans .............................................. 0.21 0.22 0.18 0.21 0.21 0.17 0.16 0.31 0.29 0.20 0.15 

Other 1-4 family residential ................................. 0.96 1.00 0.80 0.77 1.03 0.77 0.57 1.57 0.57 1.01 1.12 

Commercial and industrial loans ............................ 2.05 1.71 1.28 1.46 2.29 3.10 1.66 1.82 1.20 1.26 1.35 

Loans to individuals ............................................... 1.46 1.02 0.85 1.16 1.56 2.04 0.88 0.75 2.02 0.62 1.21 

Credit card loans ................................................. 2.18 1.48 2.60 2.39 2.15 2.33 2.17 1.97 2.59 0.75 1.82 

Other loans to individuals ................................... 0.97 1.01 0.60 0.51 1.10 1.78 0.58 0.48 0.71 0.59 0.44 

All other loans and leases (including farm) ............ 0.66 1.00 1.02 0.73 0.62 0.71 0.66 0.46 0.74 1.33 0.90 

Total loans and leases ........................................... 

Percent of Loans Charged-off (net, YTD) 

1.12 1.09 0.86 0.90 1.22 1.47 0.79 1.17 1.06 0.99 0.97 

All real estate loans ............................................... 0.13 0.08 0.08 0.10 0.16 0.07 0.10 0.34 0.08 0.14 0.05 

Construction and development ........................... 0.13 0.12 0.11 0.16 0.13 0.06 0.10 0.23 0.11 0.15 0.08 

Commercial real estate ....................................... 0.12 0.10 0.10 0.15 0.12 0.07 0.09 0.23 0.09 0.11 0.11 

Multifamily residential real estate ........................ 0.02 0.08 0.04 0.01 0.01 0.01 0.02 0.03 0.03 0.11 0.00 

Home equity loans .............................................. 0.18 0.05 0.05 0.12 0.20 0.05 0.13 0.37 0.16 0.21 0.07 

Other 1-4 family residential ................................. 0.13 0.08 0.07 0.07 0.16 0.04 0.09 0.47 0.06 0.15 0.04 

Commercial and industrial loans ............................ 1.25 0.79 0.75 0.94 1.38 1.54 1.10 1.22 0.77 0.82 1.18 

Loans to individuals ............................................... 2.96 0.94 2.11 2.51 3.16 3.60 2.18 1.85 4.22 1.19 3.23 

Credit card loans ................................................. 5.61 3.81 10.47 5.70 5.45 5.75 7.30 5.17 6.22 2.45 4.70 

Other loans to individuals ................................... 1.43 0.85 0.86 1.05 1.60 1.90 1.06 1.21 0.62 0.95 1.70 

All other loans and leases (including farm) ............ 0.40 0.33 0.43 0.45 0.40 0.44 0.28 0.48 0.30 0.55 0.30 

Total loans and leases ........................................... 

Loans Outstanding (in billions) 

0.80 0.30 0.40 0.50 0.90 1.20 0.50 0.70 1.10 0.40 0.60 

All real estate loans ............................................... $3,143.1 $89.2 $557.4 $554.0 $1,942.4 $712.7 $710.1 $609.0 $162.1 $227.8 $721.4 

Construction and development ........................... 272.2 8.8 70.6 64.4 128.4 32.5 81.3 62.1 16.4 37.2 42.7 

Commercial real estate ....................................... 681.7 25.1 197.0 165.4 294.2 137.0 162.9 150.8 45.5 71.5 114.1 

Multifamily residential real estate ........................ 151.9 2.2 25.3 37.5 86.9 38.8 19.0 28.4 5.4 6.3 54.0 

Home equity loans .............................................. 346.1 3.0 32.0 40.0 271.1 73.6 84.4 92.1 9.3 13.8 72.8 

Other 1-4 family residential ................................. 1,610.7 40.2 213.8 240.4 1,116.4 397.5 354.6 265.2 72.6 87.7 433.1 

Commercial and industrial loans ............................ 922.3 20.6 105.0 118.0 678.7 285.6 200.5 216.0 46.2 58.9 115.0 

Loans to individuals ............................................... 848.3 14.0 59.7 98.8 675.8 333.3 134.4 126.1 74.8 41.1 138.5 

Credit card loans ................................................. 339.4 0.4 7.4 34.3 297.3 153.8 25.5 23.4 52.0 7.2 77.5 

Other loans to individuals ................................... 508.9 13.7 52.2 64.5 378.5 179.5 109.0 102.7 22.8 34.0 61.0 

All other loans and leases (including farm) ............ 523.7 13.8 29.9 35.4 444.7 193.8 100.4 149.9 36.6 14.6 28.3 

Total loans and leases ........................................... 

Memo: Other Real Estate Owned (in millions) 

5,437.4 137.6 752.0 806.2 3,741.6 1,525.4 1,145.5 1,101.1 319.8 342.4 1,003.3 

All other real estate owned .................................... 5,336.8 352.9 1,420.2 894.1 2,669.5 695.9 1,082.0 1,425.3 426.8 885.1 821.7 

Construction and development ........................... 685.0 49.6 253.2 200.6 181.6 29.1 137.5 193.6 89.5 177.1 58.3 

Commercial real estate ....................................... 1,822.4 135.9 620.8 371.6 694.1 197.9 440.6 360.6 164.6 356.9 301.9 

Multifamily residential real estate ........................ 119.1 10.8 43.0 36.7 28.5 7.5 14.0 35.5 6.9 46.6 8.6 

1-4 family residential ........................................... 2,490.5 136.1 443.4 282.0 1,629.0 343.3 476.3 823.1 145.5 275.7 426.7 

Farmland ............................................................. 109.1 20.7 61.2 6.4 20.7 2.5 15.3 13.3 21.8 29.8 26.4 

* See Table IV-A (page 9) for explanations.
 

** 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.
 

ALL FDIC-INSURED INSTITUTIONS 11 FOURTH QUARTER 2003 
 

 

FDIC Quarterly Banking Profile 

Insurance Fund Indicators 

� BIF Reserve Ratio Ends Year at 1.32 Percent, Unchanged from Previous Quarter 

� BIF Unrealized Gains on Securities $576 Million Lower Than Previous Year 

� Rapid Deposit Growth Causes SAIF Reserve Ratio to Decline 3 Basis Points 

� Three BIF-Member Institutions Fail During Year 

Insured deposits rose by 1.0 percent during the fourth 

quarter, bringing the growth rate for the full year to 2.0 

percent. Full year growth was lower than the previous 

year’s 5.4 percent rise, and was the smallest increase since 

1999 when insured deposits increased by 0.7 percent. 

Insured deposits at the 9,182 banks and thrifts institutions rose by $67 billion during 2003. 

Deposits insured by the Bank Insurance Fund (BIF) grew 

by 0.5 percent during the fourth quarter and by 1.2 percent for the full year, exceeding $2.5 trillion at year-end. 

On December 31, 2003, the balance of the BIF was $33.8 

billion (unaudited), $320 million higher than three 

months earlier. This was the smallest quarterly increase to 

the fund since the third quarter of 2002, when it rose by 

$196 million. More than three fourths of the increase 

($246 million) came from reducing reserves previously set 

aside for future estimated failure costs. Between year 

end 2002 and year end 2003, the BIF balance increased 

by $1.7 billion, the largest full year increase in eight 

years. More than half of the fund’s annual increase ($928 

million) came from reducing reserves previously set aside 

for future estimated failure costs. Interest rate volatility 

during 2003 caused the BIF to record a small unrealized 

loss on available for sale securities which reduced the 

fund by $10 million. This was a big change from the previous year when unrealized gains on securities boosted the 

BIF by $566 million. From September 30 to December 

31 2003, unrealized losses on securities decreased the fund 

by $106 million, during the preceding nine months unrealized gains on securities increased the BIF by $96 million. 

The reserve ratio for the Bank Insurance Fund ended 

2003 at 1.32 percent, unchanged from the previous quarter, and five basis points higher than twelve months earlier. As of year-end 2003, the BIF reserve ratio would 

change roughly one basis point for every $255 million 

change in the BIF fund balance or every $19.2 billion 

movement in the amount of deposits insured by the BIF. 

SAIF insured deposits increased by 2.8 percent ($24.4 billion) during the fourth quarter, ending 2003 at $896 billion. This was the strongest quarterly growth since the 

fourth quarter of 2002 when SAIF-insured deposits 

increased by 3.1 percent. For SAIF-member institutions, 

insured deposits grew at 543 institutions, decreased at 617 

institutions and remained unchanged at 22 institutions. 

SAIF insured deposits of BIF-member institutions 

(Oakars) increased by $9.7 billion (2.4 percent) during 

the quarter, while SAIF insured deposits of SAIF-member 

institutions increased by $14.7 billion (3.1 percent). 

On December 31, 2003, the Savings Association Insurance Fund (SAIF) was $12.2 billion, $54 million higher 

than three months earlier. This was the smallest quarterly increase in the SAIF since the third quarter of 2001 

when the fund increased by $23 million. SAIF growth 

was limited by a $37 million unrealized loss on securities 

and a $10 million provision for future estimated insurance losses. Rapid insured deposit growth outstripped 

the growth in the fund, causing the SAIF reserve ratio to 

decline three basis points during the fourth quarter of 

2003 to 1.37 percent. 

Only one FDIC-insured institution failed during the 

fourth quarter of 2003; a small BIF-member savings bank. 

At the time of failure, this institution had $9 million in 

assets and an estimated failure cost of $1 million. For all 

of 2003, three FDIC-insured institutions failed; all were 

BIF members with assets of $1.1 billion and an estimated 

failure cost of $103 million. Three failures is the smallest 

number since 1998 when three BIF-member institutions 

with $371 million in assets failed at an estimated cost of 

$230 million. 

Changes in Insurance Fund Balances 

(dollar figures in millions) Bank Insurance Fund 

4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 

2003 2003 2003 2003 2002 2002 2002 

Savings Association Insurance Fund 

4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 

2003 2003 2003 2003 2002 2002 2002 

Beginning Fund Balance $33,462 $32,800 $32,382 $32,050 $31,383 $31,187 $30,697 

Unrealized Gain (Loss) on 

Available-For-Sale Securities –106 –45 38 103 –72 433 183 

Provision for Insurance Losses –246 –543 –133 –6 –497 447 –19 

All Other Income, Net of Expenses 180 164 247 223 242 210 288 

Total Fund Balance Change 320 662 418 332 667 196 490 

Ending Fund Balance $33,782 $33,462 $32,800 $32,382 $32,050 $31,383 $31,187 

$12,186 $12,083 $11,906 $11,747 $11,586 $11,323 $11,049 

–37 –16 13 33 –26 147 61 

10 –26 –45 –21 –70 –4 –79 

101 93 119 105 117 112 134 

54 103 177 159 161 263 274 

$12,240 $12,186 $12,083 $11,906 $11,747 $11,586 $11,323 

FOURTH QUARTER 2003 12 ALL FDIC-INSURED INSTITUTIONS 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FDIC Quarterly Banking Profile 

TABLE I-B. Selected Insurance Fund Indicators* 

(dollar figures in millions) Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

2003 2003 2002 02:4-03:4 Bank Insurance Fund 

Reserve ratio (%)................................................................... 1.32 1.32 1.27 4.2 

Fund Balance ....................................................................... 33,782 33,462 32,050 5.4 

Estimated insured deposits ...................................................... 2,554,624 2,542,822 2,524,474 1.2 

SAIF-member Oakars............................................................ 100,209 101,784 92,591 8.2 

BIF-members ..................................................................... 2,454,416 2,441,038 2,431,883 0.9 

Assessment base .................................................................. 4,139,287 4,085,878 3,867,049 7.0 

SAIF-member Oakars............................................................ 103,802 105,508 94,976 9.3 

BIF-members ..................................................................... 4,035,485 3,980,371 3,772,073 7.0 

Savings Association Insurance Fund 

Reserve ratio (%) .................................................................. 1.37 1.40 1.37 -0.1 

Fund Balance ...................................................................... 12,240 12,186 11,747 4.2 

Estimated insured deposits ...................................................... 896,493 872,121 859,205 4.3 

BIF-member Oakars ............................................................ 405,665 395,970 373,406 8.6 

SAIF-member Sassers ......................................................... 95,017 94,607 92,106 3.2 

Other SAIF members ............................................................ 395,811 381,545 393,693 0.5 

Assessment base .................................................................. 1,042,729 1,059,287 989,267 5.4 

BIF-member Oakars ............................................................ 408,372 400,062 377,329 8.2 

SAIF-member Sassers ......................................................... 119,680 119,147 113,210 5.7 

Other SAIF members ............................................................ 514,678 540,077 498,727 3.2 

Insurance Fund Reserve Ratios* 

Percent of Insured Deposits 

Target 

Ratio 

1.25 

12/98 12/99 12/00 12/01 3/02 6/02 9/02 12/02 3/03 6/03 9/03 12/03 

BIF SAIF 

1.39 

1.37 

1.35 

1.26 

1.23 

1.25 1.25 

1.27 1.28 

1.29 

1.32 1.32 

1.37 

1.43 1.42 

1.36 1.36 

1.38 1.39 

1.37 1.37 

1.39 1.40 

1.37 

Fund Balances and Insured Deposits* 

($Millions) 

BIF BIF-Insured SAIF SAIF-Insured 

Balance Deposits Balance Deposits 

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

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

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

12/01 30,439 2,409,566 10,935 801,171 

3/02 30,697 2,495,498 11,049 810,902 

6/02 31,187 2,490,954 11,323 818,806 

9/02 31,383 2,513,160 11,586 833,029 

12/02 32,050 2,524,474 11,747 859,205 

3/03 32,282 2,531,307 11,906 867,908 

6/03 32,800 2,547,109 12,083 871,477 

9/03 33,462 2,542,822 12,186 872,121 

12/03 33,782 2,554,624 12,240 896,493 

* 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. Only year 

end fund balances are audited by GAO. Fund balances for the most recent period are unaudited. BIF-insured deposit totals 

include U.S. branches of foreign banks. 

TABLE II-B. Closed/Assisted Institutions 

(dollar figures in millions) 

2003 2002 2001 2000 1999 1998 1997 

BIF Members 

Number of institutions ..................................... 3 10 3 6 7 3 1 

Total assets .................................................. $1,097 $2,508 $54 $378 $1,490 $371 $27 

SAIF Members 

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

Total assets .................................................. $0 $50 $2,200 $30 $71 $0 $0 

ALL FDIC-INSURED INSTITUTIONS 13 FOURTH QUARTER 2003 
FDIC Quarterly Banking Profile 

TABLE III-B. Selected Indicators, By Fund Membership* 

(dollar figures in millions) 

BIF Members 

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

BIF-member Oakars ....................................... 

Other BIF-members ....................................... 

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

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

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

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

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

Noncurrent assets plus OREO to assets (%) ......... 

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

Assets of problem institutions .............................. 

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

Assets of failed/assisted institutions ..................... 

SAIF Members 

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

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

Other SAIF-members ....................................... 

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

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

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

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

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

Noncurrent assets plus OREO to assets (%) ......... 

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

Assets of problem institutions .............................. 

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

Assets of failed/assisted institutions ..................... 

2003 2002 2001 2000 1999 1998 1997 

7,996 

764 

7,232 

$7,899,294 

5,210,272 

106,315 

1.40 

15.21 

0.76 

102 

$29 

3 

$1,097 

1,186 

143 

1,043 

$1,177,483 

744,016 

14,319 

1.25 

13.86 

0.69 

14 

$1 

0 

$0 

8,125 

801 

7,324 

$7,336,225 

4,854,891 

92,644 

1.32 

14.34 

0.91 

116 

$32,176 

10 

$2,508 

1,229 

133 

1,096 

$1,099,965 

713,599 

12,462 

1.17 

12.79 

0.79 

20 

$6,751 

1 

$50 

8,327 

766 

7,561 

$6,857,472 

4,567,604 

76,500 

1.14 

12.91 

0.89 

90 

$31,881 

3 

$54 

1,287 

130 

1,157 

$1,011,736 

621,824 

10,623 

1.11 

13.46 

0.75 

24 

$7,923 

1 

$2,200 

8,572 

743 

7,829 

$6,510,744 

4,337,661 

73,430 

1.18 

13.86 

0.72 

74 

$10,787 

6 

$378 

1,332 

122 

1,210 

$952,154 

577,100 

8,071 

0.89 

11.12 

0.65 

20 

$13,053 

1 

$30 

8,835 9,032 9,406 

744 745 778 

8,091 8,287 8,628 

$5,980,127 $5,702,872 $5,292,758 

3,987,336 3,843,779 3,614,414 

73,952 64,451 61,506 

1.29 1.18 1.22 

15.11 13.82 14.43 

0.62 0.64 0.67 

66 68 73 

$4,450 $5,326 $4,598 

7 3 1 

$1,490 $371 $27 

1,387 1,432 1,517 

123 116 112 

1,264 1,316 1,405 

$903,532 $828,177 $751,960 

550,703 542,481 511,386 

8,450 7,568 6,443 

0.99 0.98 0.94 

11.97 11.29 11.11 

0.64 0.80 0.99 

13 16 19 

$5,524 $5,992 $1,662 

1 0 0 

$71 $0 $0 

* Excludes insured branches of foreign banks (IBAs). 

TABLE IV-B. Estimated FDIC-Insured Deposits by Fund Membership and Type of Institution 

(dollar figures in millions) 

December 31, 2003 

Commercial Banks and Savings Institutions 

Number of 

Institutions 

Total 

Assets 

Domestic 

Depostis* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks ..................... 7,769 7,602,489 4,287,695 2,296,170 418,350 2,714,520 

BIF-member ............................................. 7,657 7,425,742 4,172,956 2,261,718 362,403 2,624,121 

SAIF-member ............................................. 112 176,747 114,739 34,452 55,947 90,400 

FDIC-Supervised ....................................... 4,833 1,397,161 1,035,203 642,905 89,760 732,665 

OCC-Supervised ....................................... 2,001 4,292,331 2,322,051 1,226,761 238,123 1,464,884 

Federal Reserve-Supervised ........................ 935 1,912,997 930,440 426,504 90,467 516,971 

FDIC-Insured Savings Institutions ..................... 1,413 1,474,288 925,423 257,491 478,143 735,635 

OTS-Supervised Savings Institutions ............... 928 1,102,420 662,974 117,955 408,015 525,969 

BIF-member ............................................. 40 169,199 82,852 55,779 12,204 67,983 

SAIF-member ............................................. 888 933,221 580,122 62,176 395,811 457,987 

FDIC-Supervised State Savings Banks ............... 485 371,868 262,449 139,537 70,129 209,665 

BIF-member ............................................. 299 304,353 213,756 135,956 31,059 167,015 

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

Total Commercial Banks and 

186 67,515 48,693 3,581 39,070 42,651 

Savings Institutions .................................... 9,182 9,076,777 5,213,117 2,553,662 896,493 3,450,155 

BIF-member ................................................ 7,996 7,899,294 4,469,564 2,453,453 405,665 2,859,118 

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

Other FDIC-Insured Institutions 

1,186 1,177,483 743,554 100,209 490,829 591,037 

U.S. Branches of Foreign Banks ..................... 14 10,129 4,855 963 0 963 

Total FDIC-Insured Institutions ........................ 9,196 9,086,906 5,217,972 2,554,624 896,493 3,451,117 

* Excludes $741 billion in foreign office deposits, which are uninsured. 

FOURTH QUARTER 2003 14 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE V-B. Assessment Base Distribution and Rate Schedule 

BIF Assessment Base Distribution
 

Assessable Deposits in Billions as of December 31, 2003
 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2004
 

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

7,357 

$3,988 

64 

$10 

2 

$0 

92.0% 

96.4% 

0.8% 

0.2% 

0.0% 

0.0% 

468 5.9% 

$119 2.9% 

9 0.1% 

$1 0.0% 

0 0.0% 

$0 0.0% 

81 

$20 

9 

$1 

6 

$0 

1.0%

0.5% 

0.1%

0.0% 

0.1%

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. 

SAIF Assessment Base Distribution
 

Assessable Deposits in Billions as of December 31, 2003
 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2004
 

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

1,099 

$1,008 

3 

$1 

1 

$0 

92.7% 

96.7% 

0.3% 

0.1% 

0.1% 

0.0% 

67 5.6% 

$32 3.1% 

2 0.2% 

$0 0.0% 

0 0.0% 

$0 0.0% 

13 

$1 

1 

$0 

0 

$0 

1.1%

0.1% 

0.1%

0.0% 

0.0%

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 Schedule
 

First Semiannual 2004 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. 

ALL FDIC-INSURED INSTITUTIONS 15 FOURTH QUARTER 2003 
FDIC Quarterly Banking Profile 

Number of FDIC-Insured “Problem” Institutions, 1995–2003 

Number of Institutions 

193 

117 

92 84 79 

94 

114 

136 129 125 116 116 

0 

50 

100 

150 

200 SAIF Members 

BIF Members 

12/95 12/96 12/97 12/98 12/99 12/00 12/01 12/02 3/03 6/03 9/03 12/03 

SAIF Members 42 31 19 16 13 20 24 20 18 14 13 14
 

BIF Members 151 86 73 68 66 74 90 116 111 111 103 102
 

Assets of FDIC-Insured “Problem” Institutions, 1995–2003 

$ Billions 

SAIF Members 

BIF Members 

$31 

$12 

$6 $11 $10 

$24 

$40 $39 $35 $32 $30 $30 

0 

20 

40 

60 

80 

12/95 12/96 12/97 12/98 12/99 12/00 12/01 12/02 3/03 6/03 9/03 12/03 

SAIF Members 11 6 2 6 6 13 8 7 3 1 1 1
 

BIF Members 20 7 5 5 4 11 32 32 32 31 29 29
 

FOURTH QUARTER 2003 16 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

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. 

Tables I-A through V-A. 

The information presented in Tables I-A through V-A of the 

FDIC Quarterly Banking Profile is aggregated for all FDIC-insured 

Institutions, both commercial banks and savings institutions. 

Some tables are arrayed by groups of FDIC-insured institutions 

based on predominant types of asset concentration, while other 

tables aggregate institutions by asset size and geographic region. 

Quarterly and full-year data are provided for selected indicators, 

including aggregate condition and income data, performance 

ratios, condition ratios and structural changes, as well as past due, 

noncurrent and charge-off information for loans outstanding and 

other assets. 

Tables I-B through V-B. 

A separate set of tables(Tables I-B through V-B) provides quarterly 

and annual data related to the bank (BIF) and savings association 

(SAIF) insurance funds, closed/assisted institutions, and assessments. 

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 BIFinsured deposits. The insurance fund membership does not necessarily reflect which fund insures the largest percentage of an 

institution’s deposits. Therefore, the BIF-member and the SAIFmember tables each include deposits from both insurance funds. 

Depository institutions that are not insured by the FDIC through 

either the BIF or SAIF are not included in the FDIC Quarterly 

Banking Profile. U.S. branches of institutions headquartered in foreign countries and non-deposit trust companies are not included 

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 (beginning-of-period 

amount plus end-of-period amount plus any interim periods, divided by the total number of periods). For “pooling-of-interest” mergers, the assets of the acquired institution(s) are included in average 

assets since the year-to-date income includes the results of all 

merged institutions. No adjustments are made for “purchase 

accounting” mergers. Growth rates represent the percentage 

change over a 12-month period in totals for institutions in the 

base period to totals for institutions in the current period. 

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. 

ACCOUNTING CHANGES 

FASB Interpretation No. 45 — In November 2002, the FASB issued 

Interpretation No. 45, Guarantor’s Accounting and Disclosure 

Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others. This interpretation clarifies that a guarantor is 

required to recognize, at the inception of a guarantee (financial 

standby letters of credit, performance standby letters of credit), a 

liability for the fair value of the obligation undertaken in issuing 

the guarantee. Banks apply the initial recognition and measurement provisions of Interpretation No. 45 on a prospective basis to 

guarantees issued or modified after December 31, 2002, irrespective of the bank’s fiscal year end. A bank’s previous accounting for 

guarantees issued prior to January 1, 2003, is not revised. 

FASB Interpretation No. 46 — The FASB issued Interpretation No. 

46, Consolidation of Variable Interest Entities, in January 2003. Most 

small banks are unlikely to have any “variable interests” in variable interest entities. Banks with variable interests in variable 

interest entities created after January 31, 2003, must apply the provisions of Interpretation No. 46 to those entities immediately. As 

announced in FASB Staff Position No. FIN 46-6 on October 9, 

2003, a bank that is a public company, or a subsidiary of a public 

company, and has a variable interest in a variable interest entity 

created before February 1, 2003, must apply the provisions of 

Interpretation No. 46 to that entity no later than the beginning of 

the first interim or annual reporting period beginning after 

December 15, 2003. A bank that is neither a public company nor 

a subsidiary of a public company, but has a variable interest in a 

variable interest entity created before February 15, 2003, must 

apply the provisions of Interpretation No. 46 to that entity no 

later than the end of the first annual reporting period beginning 

after June 15, 2003. The assets and liabilities of a consolidated 

variable interest entity are reported on a line-by-line basis according to the asset and liability categories shown on the balance 

sheet. 

Goodwill and intangible assets — FAS 141 terminates the use of 

pooling-of-interest accounting for business combinations after 

2001 and requires purchase accounting. Under FAS 142 amortization of goodwill is eliminated. Only intangible assets other than 

goodwill are amortized each quarter. In addition companies are 

required to test for impairment of both goodwill and other intangibles once each fiscal year. The year 2002, the first fiscal year 

affected by this accounting change, has been designated a transitional year and the amount of initial impairments are to be recorded as extraordinary losses on a “net of tax” basis (and not as 

noninterest expense). Subsequent annual review of intangibles 

and goodwill impairment may require additional noninterest 

expense recognition. FASB Statement No. 147 clarifies that 

acquisitions of financial institutions (except transactions between 

two or more mutual enterprises), including branch acquisitions 

that meet the definition of a business combination, should be 

accounted for by the purchase method under FASB Statement 

No. 141. This accounting standard includes transition provisions 

that apply to unidentifiable intangible assets previously accounted 

for in accordance with FASB Statement No. 72. If the transaction 

(such as a branch acquisition) in which an unidentifiable intangible asset arose does not meet the definition of a business combination, this intangible asset is not be reported as “Goodwill” on the 

Call Report balance sheet. Rather, this unidentifiable intangible 

asset is reported as “Other intangible assets,” and must continue to 

be amortized and the amortization expense should be reported in 

the Call Report income statement. 

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 

ALL FDIC-INSURED INSTITUTIONS 17 FOURTH QUARTER 2003 
 

 

FDIC Quarterly Banking Profile 

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 held-to-maturity into the 

available-for-sale category or the trading category. Unrealized 

gains (losses) on transferred held-to-maturity 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 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 riskbased 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. 

Assets securitized and sold — total outstanding principal balance of 

assets sold and securitized with servicing retained or other sellerprovided credit enhancements. 

BIF-insured deposits (estimated) — the portion of estimated insured 

deposits that is insured by the BIF. For SAIF-member “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 interestrate swap, futures, forward and option contracts), foreignexchange-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. 

Domestic deposits to total assets — total domestic office deposits as a 

percent of total assets on a consolidated basis.
 

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 total
 

domestic deposits minus estimated uninsured deposits. While the
 

uninsured estimate is calculated as the sum of the excess amounts
 

in accounts over $100,000, beginning June 30, 2000 the amount of
 

FOURTH QUARTER 2003 18 ALL FDIC-INSURED INSTITUTIONS 
 

FDIC Quarterly Banking Profile 

estimated uninsured deposits was adjusted to consider a financial 

institution’s better estimate. Since March 31, 2002, all institutions provide a reasonable estimate of uninsured deposits from 

their systems and records. 

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 and by TFR filers. 

Goodwill and other intangibles — intangible assets include servicing rights, purchased credit card relationships and other identifiable intangible assets. 

Loans secured by real estate — includes home equity loans, junior 

liens secured by 1-4 family residential properties and all other 

loans secured by real estate. 

Loans to individuals — includes outstanding credit card balances 

and other secured and unsecured consumer loans.
 

Long-term assets (5+ years) — loans and debt securities with
 

remaining maturities or repricing intervals of over five years.
 

Mortgage-backed securities — certificates of participation in pools
 

of residential mortgages and collateralized mortgage obligations
 

issued or guaranteed by government-sponsored or private enterprises. Also, see “Securities”, below.
 

Net charge-offs — total loans and leases charged off (removed
 

from balance sheet because of uncollectibility), less amounts
 

recovered on loans and leases previously charged off.
 

Net interest margin — the difference between interest and dividends earned on interest-bearing assets and interest paid to
 

depositors and other creditors, expressed as a percentage of average earning assets. No adjustments are made for interest income
 

that is tax exempt.
 

Net loans to total assets — loans and lease financing receivables,
 

net of unearned income, allowance and reserves, as a percent of
 

total assets on a consolidated basis.
 

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 SAIF-member institutions for which the 

FDIC is the primary federal regulator, FDIC composite ratings 

are used. For all SAIF-member institutions whose primary federal regulator is the OTS, the OTS composite rating is used. 

Reserves for losses — the allowance for loan and lease losses on a 

consolidated basis. Between March 31, 2001 and March 31, 

2003 reserves for losses did not include the allocated transfer risk 

reserve, which was 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. 

Retained earnings — net income less cash dividends on common 

and preferred stock for the reporting period.
 

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-balancesheet items multiplied by risk-weights that range from zero to
 

100 percent. A conversion factor is used to assign a balance
 

sheet equivalent amount for selected off-balance-sheet accounts.
 

SAIF-insured deposits (estimated) — the portion of estimated
 

insured deposits that is insured by the SAIF. For BIF-member
 

“Oakar” institutions, it represents the adjusted attributable
 

amount acquired from SAIF members.
 

Securities — excludes securities held in trading accounts. Banks’
 

securities portfolios consist of securities designated as “held-tomaturity”, which are reported at amortized cost (book value),
 

and securities designated as “available-for-sale”, 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.
 

Trust assets — market value, or other reasonably available value
 

of fiduciary and related assets, to include marketable securities,
 

and other financial and physical assets. Common physical
 

assets held in fiduciary accounts include real estate, equipment, collectibles, and household goods. Such fiduciary assets
 

are not included in the assets of the financial institution.
 

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. 

ALL FDIC-INSURED INSTITUTIONS 19 FOURTH QUARTER 2003 
The FDIC Quarterly Banking Profile is published quarterly by the Division of Insurance and Research of the 

Federal Deposit Insurance Corporation. Single copy subscriptions of the FDIC Quarterly Banking Profile can be 

obtained through the FDIC Public Information Center, 801 17th Street, NW, Washington, DC 20434; Telephone 

(202) 416-6940 or (877) 275-3342; or Email: publicinfo@fdic.gov.

The FDIC Quarterly Banking Profile is available on-line by visiting the FDIC’s website 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. 

Chairman Donald E. Powell 

Director, Division of Insurance Arthur J. Murton 

and Research 

Media Inquiries (202) 898-6993

Authors Don Inscoe 

Associate Director, Statistics Branch 

(202) 898-3940

Kevin Brown 

(202) 898-6817

Ross Waldrop 

(202) 898-3951

Attention:
 

Chief Executive Officer