Quarterly Banking Profile
 

THIRD QUARTER 2004 

• Net Income of $32.5 Billion Is Best Ever 

• Higher Net Interest Income, Lower Expenses Boost Profits 

• Margins, Profitability Improve at Community Banks 

• Home Equity Lines Lead Strong Loan Growth 

• C&I Loans Increase by $26.1 Billion 

Chart 1 Chart 2 

22.4 

17.3 

21.8 20.1 

22.7 22.5 20.9 22.0 

25.3 27.2 27.3 25.4 

29.5 30.2 30.4 31.0 31.8 31.1 32.5 

10 

20 

30 

$ Billion 

Securities and Other Gains/Losses, Net 

Net Operating Income 

Profits Rebound to New Record 

3.5 

4.0 

4.5 

5.0 

Net Interest Margin (%) 

Assets < $100 Million 4.40 

3.81 

4.19 

3.61 

The Gap Between Small and Large 

Institutions’ Margins Widened 

Assets > $100 Million 

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

0 

2000 2001 2002 2003 2004 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 

3.0 

2000 2001 2002 2003 2004 

Profits Return to Record Levels 

A combination of continued strength in consumer loan 

demand and growing demand for commercial loans provided a lift to earnings in the third quarter, as insured 

institutions reported a record high $32.5 billion in net 

income. Third-quarter profits were $1.4 billion (4.4 

percent) higher than in the second quarter, and were 

$658 million (2.1 percent) above the previous quarterly 

record of $31.8 billion, set in the first quarter of this 

year. This is the sixth time in the last seven quarters 

that industry earnings have set a new record. Net interest income was $1.6 billion (2.1 percent) higher than 

in the second quarter, while gains on sales of securities 

and other assets were $811 million (49.2 percent) higher. Noninterest expenses were down $1.3 billion from 

the second quarter, when they were inflated by expenses for litigation reserves at a few large banks. Loan-loss 

provisions were $67 million (0.9 percent) lower. These 

positive earnings factors were partially offset by lower 

noninterest income (down $2.6 billion, or 4.8 percent), 

and a $1.8-billion (46.4 percent) decline in net income 

from international operations. The average return on 

assets (ROA) for the quarter was 1.33 percent, up from 

1.31 percent in the second quarter, but below the 

record-high 1.39 percent registered in the first quarter 

of 2003. More than three out of every five institutions 

(61.7 percent) reported higher earnings than in the second quarter, while more than half (57.5 percent) 

reported higher ROAs. 

Trading Revenues Fall for Second Consecutive Quarter 

The decline in noninterest income stemmed from lower 

trading revenues and servicing fees, and reduced gains 

from sales of loans and other assets. Income from trading activities declined by $1.3 billion (46.9 percent) 

during the third quarter, after a $1.1-billion (28.9-percent) decline in the second quarter. These declines 

FEDERAL DEPOSIT INSURANCE CORPORATION ALL FDIC-INSURED INSTITUTIONS 
 

 

FDIC Quarterly Banking Profile 

were caused by interest rate exposures; revenues 

from these exposures fell from $1.5 billion in the 

first quarter to $133 million in the second quarter, 

to a loss of $1.4 billion in the third quarter. Net 

gains on sales of loans and other assets were $1.5 

billion (39.9 percent) lower than in the second 

quarter, while servicing fees declined by $1.3 billion 

(26.7 percent). The reduction in servicing income 

reflected lower valuations of servicing assets caused 

by falling long-term interest rates. Among the few 

bright spots in noninterest revenues were securitization income, which was $578 million (10.3 percent) 

higher than in the second quarter, service charges 

on deposit accounts (up $117 million, or 1.3 percent), and insurance commissions and fees (up $32 

million, or 3.0 percent). Over the last four quarters, 

noninterest expense growth has been outpacing 

growth in noninterest income. 

Net Interest Margins Improve at Smaller Institutions 

The industry’s net interest margin declined for the 

third quarter in a row, falling by 2 basis points to 

3.62 percent, its lowest level since the first quarter 

of 1991. However, the average margin at institutions with less than $1 billion in assets improved by 

9 basis points, and almost two-thirds of all institutions (65.7 percent) reported improved margins. 

These improvements were outweighed by margin 

erosion at larger institutions, whose liabilities 

repriced upward more rapidly as short-term interest 

rates rose. Growth in net interest income came 

from a 2-percent ($170.3-billion) increase in interest-earning assets. 

Loan-Loss Provisions Register a Small Decline 

Provisions for loan losses declined from the previous 

quarter by $67 million (0.9 percent). This is the 

sixth time in the last seven quarters that provisions 

have declined, but it is the smallest of the declines. 

A year ago, the quarterly decline in loss provisions 

was $1.7 billion. At $7.3 billion, the third quarter’s 

loss provision is the smallest since the third quarter 

of 2000, when the industry’s loan portfolio was 23 

percent smaller than it is today. Only 28.6 percent 

of institutions reported lower loss provisions, while 

32.3 percent increased their provisions. 

Most Asset Quality Indicators Continue to Improve 

Noncurrent loans, those more than 90 days past due 

or in nonaccrual status, declined by $854 million 

(1.7 percent) during the third quarter, the eighth 

consecutive quarter that they have fallen. Over the 

past two years, noncurrent loans have fallen by 

$18.2 billion (26.5 percent). At the end of September, they totaled $50.6 billion, their lowest level 

since the end of 2000. The noncurrent loan rate 

fell from 0.89 percent to 0.85 percent, the lowest 

level in the twenty years that insured institutions 

have reported noncurrent loan amounts. Loans 30­

89 days past due increased by $2.9 billion (6.2 percent) during the quarter; it is only the second time 

in the past seven quarters that the total amount of 

Chart 3 Chart 4 

Larger Institutions’ Funding Costs Rise Above 

Small Institutions’ for First Time in Three Years 

Cost of Funding Earning Assets (%) 

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 0.0 

1.0 

2.0 

3.0 

4.0 

5.0 

Assets < $100 Million 

Assets > $100 Million 

4.16 

3.78 

1.56 

1.52 

-8.0 

-4.0 

0.0 

4.0 

8.0 

$ Billion 

$0.9 

Increase in 

Loan Loss 

Provision 

-$0.2 

Decline in 

Noninterest 

Income 

$0.3 

Increase in 

Gains on 

Securities Sales 

-$5.5 

Decline in 

Noninterest 

Expense 

$6.6 

Increase in 

Net Interest 

Income 

Higher Net Interest Income, Lower Expenses 

Drive Earnings Improvement 

1998 1999 2000 2001 2002 2003 2004 

THIRD QUARTER 2004 2 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

delinquent loans has risen. Noncurrent commercial 

and industrial (C&I) loans declined by $1.5 billion 

(10.0 percent) during the quarter, while noncurrent 

credit-card loans grew by $889 million (14.8 percent) and noncurrent residential mortgage loans 

increased by $270 million (2.1 percent). The 

amount of credit-card loans that were delinquent 

(30-89 days past due) increased by $1.1 billion (15.5 

percent), the amount of residential mortgage loans 

that were delinquent rose by $710 million (4.5 percent), and delinquent home equity loans grew by 

$299 million (21.6 percent). Despite the increased 

delinquencies, the percentages of loans that were 

delinquent or noncurrent remained at low levels in 

all loan categories. 

Net Charge-offs Fall to Four-Year Low 

Net charge-offs declined for the sixth time in the 

last seven quarters, falling by $803 million (9.8 percent) from the previous quarter. The $7.4 billion in 

net charge-offs taken in the third quarter was the 

lowest quarterly total since the third quarter of 

2000, and the 0.50-percent net charge-off rate was 

the lowest since the third quarter of 1999. C&I 

charge-offs fell by $296 million (21.9 percent), and 

credit-card charge-offs declined by $577 million 

(12.7 percent). There were no significant increases 

in charge-offs in any loan category during the third 

quarter. 

Chart 5 

Large Banks Continue to Draw Down Reserves 

For the seventh quarter in a row, net charge-offs 

exceeded provisions, and for the fourth time in the 

last five quarters, the industry’s loss reserves 

declined. At institutions with assets of $10 billion 

or more, third-quarter loss provisions covered only 

92.6 percent of net charge-offs. In each of the previous six quarters this group’s charge-offs have also 

exceeded its provisions. For all other asset-size 

groups during this time, provisions have exceeded 

charge-offs. The $356-million decline in the industry’s reserves during the third quarter, combined 

with the $198.3-billion increase in loans, caused the 

industry’s ratio of reserves to total loans to decline 

from 1.45 percent to 1.40 percent. This is the lowest level for this ratio since the third quarter of 

1986. In contrast, the $879-million decline in noncurrent loans during the quarter meant that the 

industry’s “coverage ratio” improved from $1.63 in 

reserves for every $1.00 of noncurrent loans to 

$1.65. 

Goodwill Increases Sharply for Second Consecutive 

Quarter 

Equity capital increased by $83.6 billion (9.1 percent) during the third quarter. More than half of 

this increase ($48.1 billion, or 57.6 percent of the 

increase) came from growth in goodwill, following a 

$35.6-billion (28.9 percent) increase in goodwill in 

the second quarter. Another large contribution 

came from a $14.1-billion increase in other comprehensive income, driven by an increase in unrealized 

Chart 6 

12 

11 

12 12 

10 10 10 

11 

9 

8 

7 

12 12 

14 14 

10 10 

8 

9 

8 

7 7 

1 2 3 4 1 2 3 4 1 2 3 

0 

4 

8 

12 

16 

$ Billion 

Loss Provisions 

Net Charge-offs 

2002 2003 2004 

Net Charge-offs Have Been 

Outstripping Loss Provisions 

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

-100 

-50 

0 

50 

100 

150 

200 

250 

$ Billion 

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 

Change in Domestic Loans 

Change in Domestic Deposits 

54.9 

-14.9 

196.4 

107.2 

Loan Growth Has Outpaced 

Growth in Deposits 

ALL FDIC-INSURED INSTITUTIONS 3 THIRD QUARTER 2004 
FDIC Quarterly Banking Profile 

gains on available-for-sale securities caused by the 

decline in long-term interest rates. Neither goodwill nor other comprehensive income is included in 

regulatory capital, so the industry’s tier one regulatory capital increased by only $18.4 billion (2.4 percent). While the equity-to-assets ratio rose from 

9.51 percent to 10.13 percent during the quarter, 

the core capital “leverage” ratio had a more modest 

increase, rising from 8.05 percent to 8.09 percent. 

Home Equity Lines Lead Asset Growth 

Total assets increased by $228.5 billion (2.4 percent) in the third quarter, led by a $198.6-billion 

(3.5 percent) increase in loans and leases. The loan 

categories experiencing the strongest growth included home equity lines of credit, which grew by $44.0 

billion (10.6 percent), credit-card loans, which were 

up by $42.2 billion (13.1 percent), residential mortgage loans, which increased by $38.6 billion (2.2 

percent) and real estate construction loans, which 

rose by $19.6 billion (6.5 percent). C&I loans 

increased for a second consecutive quarter, after 

declining in each of the previous 13 quarters. The 

$26.1-billion (2.8-percent) increase in C&I loans 

during the third quarter followed a $16.6-billion 

(1.8-percent) increase in the second quarter. Intangible assets increased by $52.6 billion (21.9 percent) 

Chart 7 

during the quarter, reflecting the rise in goodwill. 

Securities declined by $78.5 billion (4.2 percent). 

Deposits increased by $99.5 billion (1.6 percent), 

but failed to keep pace with the growth in industry 

assets. At the end of September, deposits funded 

only 64.6 percent of total assets, an all-time low 

level. Brokered deposits increased by $29.8 billion 

(8.0 percent) in the quarter. 

No Institutions Failed During the Third Quarter 

The number of insured banks and savings associations declined from 9,079 to 9,025 during the third 

quarter. There were 36 new charters added during 

the quarter, while 88 charters were absorbed by 

mergers. For only the second time in the last 11 

quarters, no insured institutions failed. During the 

quarter, the number of banks and thrifts on the 

FDIC’s “Problem List” declined from 102 to 95. 

Combined assets of “problem” institutions declined 

from $25.9 billion to $25.0 billion. Five mutuallyowned savings institutions, with combined assets of 

$986 million, converted to stock ownership in the 

third quarter. 

-4 

-17 -16 

-29 

-16 

-28 

-14 

-9 

-5 

-14 

-3 

-10 -11 

16 

26 

03/01 06/01 09/01 12/01 03/02 06/02 09/02 12/02 03/03 06/03 09/03 12/03 03/04 06/04 09/04 

-30 

-20 

-10 

0 

10 

20 

30 

Quarterly Change, $ Billion 

C&I Lending Picks Up Momentum 

THIRD QUARTER 2004 4 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

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

2004** 2003** 2003 2002 2001 2000 1999 

Return on assets (%) ............................................................... 1.29 1.38 1.38 1.30 1.14 1.14 1.26 

Return on equity (%) ................................................................ 13.51 15.01 15.03 14.12 12.97 13.53 14.71 

Core capital (leverage) ratio (%) .............................................. 8.09 7.86 7.88 7.86 7.78 7.71 7.80 

Noncurrent assets plus 

other real estate owned to assets (%) .................................. 0.57 0.77 0.75 0.90 0.87 0.71 0.63 

Net charge-offs to loans (%) .................................................... 0.55 0.78 0.78 0.97 0.83 0.59 0.53 

Asset growth rate (%) .............................................................. 10.44 8.10 7.58 7.20 5.44 8.41 5.40 

Net interest margin (%) ............................................................ 3.52 3.73 3.73 3.96 3.78 3.77 3.89 

Net operating income growth (%) ............................................ 5.50 10.43 15.91 18.36 -0.85 1.71 19.73 

Number of institutions reporting ............................................... 9,025 9,236 9,181 9,354 9,614 9,904 10,222 

Commercial banks ................................................................ 7,660 7,812 7,770 7,888 8,080 8,315 8,580 

Savings institutions ............................................................... 1,365 1,424 1,411 1,466 1,534 1,589 1,642 

Percentage of unprofitable institutions (%) .............................. 5.66 5.49 5.95 6.67 8.24 7.53 7.64 

Number of problem institutions ................................................ 95 116 116 136 114 94 79 

Assets of problem institutions (in billions) ................................ $25 $30 $30 $39 $40 $24 $10 

Number of failed/assisted institutions ...................................... 4 2 3 11 4 7 8 

* Excludes insured branches of foreign banks (IBAs).
 

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

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

(dollar figures in millions) 

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

3rd Quarter 

2004 

2nd Quarter 

2004 

3rd Quarter 

2003 

%Change 

03:3-04:3 

9,025 9,079 9,236 -2.3

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

CONDITION DATA 

2,141,427 2,100,307 2,041,997 4.9

Total assets ......................................................................................................... $9,877,032 $9,648,523 $8,943,051 10.4

Loans secured by real estate ........................................................................... 3,554,403 3,429,090 3,124,744 13.8

1-4 Family residential mortgages .................................................................. 1,782,652 1,744,014 1,653,926 7.8 

Commercial real estate ................................................................................. 734,585 718,630 665,763 10.3 

Construction and development ...................................................................... 319,021 299,460 263,629 21.0

Home equity lines .......................................................................................... 459,832 415,792 314,876 46.0

Commercial & industrial loans .......................................................................... 952,295 926,180 930,823 2.3

Loans to individuals .......................................................................................... 895,471 846,076 772,194 16.0

Credit cards ................................................................................................... 365,001 322,831 266,605 36.9

Farm loans ....................................................................................................... 48,956 47,289 46,672 4.9

Other loans & leases ........................................................................................ 533,499 537,571 462,105 15.4

Less: Unearned income ................................................................................... 3,196 3,067 2,980 7.2

Total loans & leases ......................................................................................... 5,981,428 5,783,140 5,333,559 12.1

Less: Reserve for losses .................................................................................. 83,784 84,139 84,992 -1.4 

Net loans and leases ........................................................................................ 5,897,644 5,699,001 5,248,567 12.4

Securities .......................................................................................................... 1,796,064 1,874,585 1,702,254 5.5

Other real estate owned ................................................................................... 4,643 4,955 5,519 -15.9

Goodwill and other intangibles ......................................................................... 293,006 240,385 170,492 71.9 

All other assets ................................................................................................. 1,885,675 1,829,597 1,816,219 3.8

Total liabilities and capital ................................................................................... 9,877,032 9,648,523 8,943,051 10.4

Deposits ........................................................................................................... 6,383,463 6,283,978 5,851,091 9.1

Domestic office deposits ............................................................................... 5,563,603 5,456,347 5,158,910 7.8

Foreign office deposits .................................................................................. 819,860 827,631 692,181 18.4

Other borrowed funds ....................................................................................... 1,963,937 1,937,167 1,688,520 16.3

Subordinated debt ............................................................................................ 110,806 110,532 103,666 6.9

All other liabilities .............................................................................................. 418,149 399,746 483,376 -13.5

Equity capital .................................................................................................... 1,000,676 917,100 816,399 22.6

Loans and leases 30-89 days past due ............................................................... 49,616 46,741 50,026 -0.8

Noncurrent loans and leases ............................................................................... 50,647 51,501 62,329 -18.7

Restructured loans and leases ............................................................................ 2,567 2,443 3,254 -21.1

Direct and indirect investments in real estate ...................................................... 851 775 709 20.0

Mortgage-backed securities ................................................................................ 1,048,544 1,073,545 948,043 10.6

Earning assets ..................................................................................................... 8,597,209 8,426,865 7,697,876 11.7

FHLB Advances .................................................................................................. 531,018 534,876 464,696 14.3

Unused loan commitments .................................................................................. 6,331,858 6,184,797 5,881,819 7.7

Trust assets ......................................................................................................... 13,984,307 13,892,639 11,777,910 18.7

Assets securitized and sold*** ............................................................................. 899,600 863,540 838,570 7.3

Notional amount of derivatives*** ........................................................................ 84,837,846 81,704,755 67,793,027 25.1 

INCOME DATA 

3rd Quarter 

2003 

%Change 

03:3-04:3 

First Three 

Qtrs 2004 

First Three 

Qtrs 2003 %Change 

3rd Quarter 

2004 

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

$306,323 $304,356 0.7 $110,119 $100,158 9.9 

88,396 94,278 -6.2 33,099 29,717 11.4 

217,927 210,078 3.7 77,020 70,441 9.3 

21,695 28,538 -24.0 7,328 8,329 -12.0 

149,364 148,836 0.4 51,083 51,322 -0.5 

216,771 206,801 4.8 75,676 70,109 7.9 

6,536 10,698 -38.9 2,458 2,163 13.6 

43,647 44,509 -1.9 14,954 15,130 -1.2 

112 24 362.1 -104 23 N/M 

91,826 89,788 2.3 32,498 30,381 7.0 

8,614 6,263 37.6 2,094 1,737 20.5 

23,172 30,129 -23.1 7,395 9,600 -23.0 

46,939 62,554 -25.0 17,727 20,501 -13.5 

44,887 27,235 64.8 14,772 9,881 49.5 

87,082 82,540 5.5 30,761 28,900 6.4 

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

ALL FDIC-INSURED INSTITUTIONS 5 THIRD QUARTER 2004 
 

FDIC Quarterly Banking Profile 

TABLE III-A. Third Quarter 2004, All FDIC-Insured Institutions 

THIRD 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 

9,025 35 6 1,783 4,386 1,000 136 459 1,137 83 

Commercial banks .............................................. 7,660 31 6 1,778 3,984 254 102 399 1,038 68 

Savings institutions ............................................. 1,365 4 0 5 402 746 34 60 99 15 

Total assets (in billions) ......................................... $9,877.0 $368.0 $1,565.9 $137.7 $3,195.2 $1,405.1 $211.7 $54.1 $147.4 $2,791.9 

Commercial banks .............................................. 8,244.4 359.6 1,565.9 137.2 2,868.6 292.8 161.5 41.1 128.9 2,688.9 

Savings institutions ............................................. 1,632.6 8.4 0.0 0.6 326.6 1,112.3 50.2 13.0 18.5 103.1 

Total deposits (in billions) ...................................... 6,383.5 112.1 928.0 111.2 2,299.2 817.9 104.2 40.7 120.2 1,850.0 

Commercial banks .............................................. 5,406.0 110.0 928.0 110.8 2,100.5 155.3 72.4 30.9 105.5 1,792.5 

Savings institutions ............................................. 977.5 2.1 0.0 0.4 198.7 662.6 31.8 9.8 14.7 57.5 

Net income (in millions) .......................................... 32,498 3,630 3,373 455 10,617 3,986 594 204 420 9,220 

Commercial banks .............................................. 27,766 3,455 3,373 454 9,650 1,229 378 159 380 8,689 

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

Performance Ratios (annualized,%) 

4,732 175 0 1 967 2,757 216 45 40 531 

Yield on earning assets .......................................... 5.18 10.97 4.49 5.77 5.34 4.96 5.67 4.35 5.42 4.67 

Cost of funding earning assets .............................. 1.56 2.24 1.82 1.61 1.42 1.83 1.63 1.32 1.53 1.33 

Net interest margin .............................................. 3.62 8.73 2.67 4.16 3.92 3.12 4.04 3.02 3.89 3.34 

Noninterest income to assets ................................. 2.09 11.38 2.51 0.70 1.52 1.14 1.99 6.60 1.13 1.86 

Noninterest expense to assets ............................... 3.10 8.99 3.41 2.73 2.92 2.26 3.01 6.94 3.11 2.76 

Loan and lease loss provision to assets ................ 0.30 3.55 0.11 0.15 0.21 0.09 0.70 0.07 0.15 0.20 

Net operating income to assets ............................. 1.26 3.93 0.83 1.33 1.31 1.07 1.16 1.53 1.11 1.21 

Pretax return on assets .......................................... 1.95 6.45 1.24 1.64 1.96 1.79 1.81 2.23 1.48 1.87 

Return on assets .................................................... 1.33 4.14 0.86 1.33 1.34 1.15 1.16 1.52 1.15 1.34 

Return on equity ..................................................... 13.56 21.23 11.97 12.43 13.16 13.23 10.68 9.12 10.67 13.50 

Net charge-offs to loans and leases ...................... 0.50 4.16 0.89 0.20 0.28 0.10 1.10 0.27 0.26 0.26 

Loan and lease loss provision to net charge-offs ... 99.09 114.61 29.92 119.82 107.02 124.03 80.80 92.11 107.06 141.34 

Efficiency ratio ........................................................ 57.56 45.22 71.41 59.95 56.63 55.92 52.62 73.95 65.82 57.06 

% of unprofitable institutions .................................. 5.73 14.29 0.00 2.86 6.59 5.50 4.41 14.16 3.69 4.82 

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

Structural Changes 

61.83 71.43 66.67 62.37 64.75 59.60 53.68 54.47 55.41 60.24 

New Charters ...................................................... 36 0 0 2 11 0 1 19 2 1 

Institutions absorbed by mergers ........................ 88 0 0 7 59 8 0 0 8 6 

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

PRIOR THIRD QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 

Return on assets (%) ................................... 2003 1.36 4.25 1.02 1.25 1.28 1.33 1.68 1.47 1.06 1.33

 ............................. 2001 1.08 3.15 0.70 1.15 0.96 1.19 1.17 1.92 1.13 1.10

 ............................. 1999 1.34 4.08 1.21 1.30 1.32 1.04 1.49 1.30 1.19 1.27 

Net charge-offs to loans and leases (%) ..... 2003 0.73 4.80 1.40 0.29 0.47 0.19 1.34 2.47 0.37 0.48

 ............................. 2001 0.83 4.25 0.69 0.48 0.77 0.17 1.28 0.43 0.31 0.70

 ............................. 1999 0.50 4.05 0.56 0.22 0.38 0.11 0.51 0.23 0.21 0.43 

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

THIRD QUARTER 2004 6 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE III-A. Third Quarter 2004, All FDIC-Insured Institutions 

THIRD 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 

9,025 4,205 4,223 480 117 1,136 1,224 1,968 2,104 1,840 753 

Commercial banks ..................................................... 7,660 3,755 3,458 360 87 599 1,073 1,614 1,997 1,707 670 

Savings institutions .................................................... 1,365 450 765 120 30 537 151 354 107 133 83 

Total assets (in billions) ................................................. $9,877.0 $217.7 $1,177.2 $1,326.0 $7,156.1 $3,403.1 $2,104.8 $1,745.7 $763.1 $588.8 $1,271.5 

Commercial banks ..................................................... 8,244.4 194.6 927.8 971.3 6,150.7 2,834.6 1,961.5 1,595.5 718.5 496.0 638.4 

Savings institutions .................................................... 1,632.6 23.1 249.5 354.6 1,005.4 568.5 143.3 150.1 44.6 92.8 633.1 

Total deposits (in billions) .............................................. 6,383.5 179.9 936.9 899.9 4,366.8 2,112.4 1,443.9 1,115.4 536.4 437.4 738.0 

Commercial banks ..................................................... 5,406.0 161.9 749.1 668.4 3,826.7 1,746.8 1,346.7 1,010.2 508.6 385.4 408.2 

Savings institutions .................................................... 977.5 18.0 187.8 231.5 540.1 365.6 97.2 105.1 27.8 51.9 329.8 

Net income (in millions) ................................................. 32,498 583 3,548 4,791 23,576 9,538 7,566 5,214 2,832 2,125 5,223 

Commercial banks ..................................................... 27,766 528 3,011 3,542 20,685 8,047 7,155 4,763 2,881 1,568 3,351 

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

Performance Ratios (annualized,%) 

4,732 55 537 1,249 2,891 1,490 411 451 -49 557 1,872 

Yield on earning assets ................................................. 5.18 5.71 5.67 5.27 5.05 4.95 5.08 5.00 5.82 5.43 5.64 

Cost of funding earning assets ...................................... 1.56 1.52 1.60 1.54 1.55 1.71 1.58 1.49 1.30 1.42 1.43 

Net interest margin ..................................................... 3.62 4.19 4.07 3.73 3.50 3.24 3.50 3.51 4.52 4.01 4.21 

Noninterest income to assets ........................................ 2.09 1.31 1.29 1.84 2.30 2.46 1.77 1.84 2.69 1.54 1.89 

Noninterest expense to assets ...................................... 3.10 3.58 3.16 3.15 3.07 3.29 2.83 2.85 4.13 3.23 2.71 

Loan and lease loss provision to assets ........................ 0.30 0.22 0.21 0.25 0.33 0.29 0.13 0.41 0.38 0.20 0.46 

Net operating income to assets ..................................... 1.26 1.05 1.20 1.28 1.27 1.11 1.33 1.11 1.47 1.28 1.63 

Pretax return on assets ................................................. 1.95 1.40 1.68 2.08 1.98 1.68 2.01 1.82 2.19 1.91 2.60 

Return on assets ........................................................... 1.33 1.08 1.22 1.46 1.33 1.13 1.46 1.21 1.49 1.46 1.66 

Return on equity ............................................................ 13.56 9.16 12.13 13.78 13.92 11.45 17.42 12.71 14.35 14.82 13.78 

Net charge-offs to loans and leases .............................. 0.50 0.25 0.19 0.34 0.60 0.73 0.26 0.43 0.57 0.30 0.54 

Loan and lease loss provision to net charge-offs .......... 99.09 140.93 165.09 116.39 92.59 80.29 84.83 142.22 91.72 108.47 113.67 

Efficiency ratio ............................................................... 57.56 69.11 62.50 58.93 56.19 61.31 58.03 55.39 60.40 61.86 46.50 

% of unprofitable institutions ......................................... 5.73 9.61 2.18 3.33 4.27 6.43 8.25 5.59 3.37 5.49 8.10 

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

Structural Changes 

61.83 57.84 64.76 70.83 62.39 64.17 67.73 54.47 59.89 63.42 69.46 

New Charters ............................................................. 36 32 2 1 1 6 12 1 1 5 11 

Institutions absorbed by mergers ............................... 88 23 54 10 1 17 15 22 19 12 3 

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

PRIOR THIRD QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%) ........................................ 2003 1.36 1.01 1.17 1.34 1.41 1.24 1.40 1.21 1.77 1.34 1.66

 ............................. 2001 1.08 0.92 1.14 1.24 1.04 1.08 0.72 1.01 1.45 1.33 1.44

 ............................. 1999 1.34 1.06 1.21 1.45 1.36 1.40 1.33 1.21 1.35 1.30 1.40 

Net charge-offs to loans and leases (%) .......... 2003 0.73 0.30 0.37 0.49 0.87 1.10 0.50 0.65 0.85 0.38 0.60

 ............................. 2001 0.83 0.32 0.33 0.77 0.99 0.88 0.98 0.82 0.72 0.44 0.78

 ............................. 1999 0.50 0.21 0.28 0.57 0.56 0.66 0.40 0.31 0.74 0.38 0.54 

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

ALL FDIC-INSURED INSTITUTIONS 7 THIRD QUARTER 2004 
FDIC Quarterly Banking Profile 

TABLE IV-A. First Three Quarters 2004, All FDIC-Insured Institutions 

FIRST THREE QUARTERS 

(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 

9,025 35 6 1,783 4,386 1,000 136 459 1,137 83 

Commercial banks ............................................... 7,660 31 6 1,778 3,984 254 102 399 1,038 68 

Savings institutions .............................................. 1,365 4 0 5 402 746 34 60 99 15 

Total assets (in billions) .......................................... $9,877.0 $368.0 $1,565.9 $137.7 $3,195.2 $1,405.1 $211.7 $54.1 $147.4 $2,791.9 

Commercial banks ............................................... 8,244.4 359.6 1,565.9 137.2 2,868.6 292.8 161.5 41.1 128.9 2,688.9 

Savings institutions .............................................. 1,632.6 8.4 0.0 0.6 326.6 1,112.3 50.2 13.0 18.5 103.1 

Total deposits (in billions) ....................................... 6,383.5 112.1 928.0 111.2 2,299.2 817.9 104.2 40.7 120.2 1,850.0 

Commercial banks ............................................... 5,406.0 110.0 928.0 110.8 2,100.5 155.3 72.4 30.9 105.5 1,792.5 

Savings institutions .............................................. 977.5 2.1 0.0 0.4 198.7 662.6 31.8 9.8 14.7 57.5 

Net income (in millions) .......................................... 91,826 10,087 10,077 1,303 30,669 11,902 1,229 587 1,232 24,741 

Commercial banks ............................................... 78,070 9,514 10,077 1,299 27,894 3,557 641 458 1,121 23,510 

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

Performance Ratios (annualized,%) 

13,757 573 0 3 2,775 8,346 589 129 110 1,232 

Yield on earning assets .......................................... 4.95 10.69 4.45 5.64 5.20 4.91 4.02 4.30 5.37 4.23 

Cost of funding earning assets ............................... 1.43 2.04 1.66 1.59 1.35 1.76 1.22 1.31 1.52 1.15 

Net interest margin .............................................. 3.52 8.65 2.79 4.05 3.85 3.15 2.80 2.98 3.85 3.08 

Noninterest income to assets ................................. 2.11 10.63 2.90 0.69 1.53 1.17 1.47 6.45 1.12 1.77 

Noninterest expense to assets ............................... 3.06 8.49 3.69 2.70 2.88 2.31 2.09 6.88 3.09 2.58 

Loan and lease loss provision to assets ................. 0.31 3.63 0.23 0.15 0.22 0.08 0.61 0.06 0.16 0.13 

Net operating income to assets .............................. 1.23 3.74 0.86 1.27 1.30 1.09 0.80 1.45 1.09 1.13 

Pretax return on assets ........................................... 1.91 6.07 1.29 1.58 1.94 1.85 1.28 2.16 1.46 1.81 

Return on assets ..................................................... 1.29 3.92 0.89 1.28 1.33 1.20 0.82 1.47 1.13 1.23 

Return on equity ..................................................... 13.51 21.50 12.13 11.94 13.32 13.64 8.81 8.79 10.48 13.09 

Net charge-offs to loans and leases ....................... 0.55 4.69 1.05 0.17 0.29 0.11 0.94 0.46 0.26 0.25 

Loan and lease loss provision to net charge-offs ... 93.63 103.29 54.96 144.64 114.57 104.98 83.05 49.62 107.16 92.57 

Efficiency ratio ........................................................ 57.74 44.84 70.53 60.87 56.46 56.26 51.60 74.66 66.08 57.39 

% of unprofitable institutions ................................... 5.66 11.43 0.00 2.24 6.82 5.00 4.41 13.94 3.78 6.02 

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

Condition Ratios(%) 

59.92 71.43 83.33 62.54 63.66 48.60 52.94 52.07 55.23 55.42 

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

Loss Allowance to: 

87.04 82.37 81.90 91.96 90.36 92.26 83.31 88.46 91.80 83.89 

Loans and leases ................................................ 1.40 4.53 1.91 1.47 1.36 0.53 1.50 1.65 1.37 1.27 

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

Noncurrent assets plus 

165.43 255.85 115.30 143.04 196.10 72.54 202.10 179.64 145.09 196.60 

other real estate owned to assets ........................... 0.57 1.30 0.69 0.76 0.55 0.59 0.63 0.30 0.63 0.40 

Equity capital ratio .................................................. 10.13 20.79 7.27 10.87 10.40 8.74 13.61 16.97 10.92 10.25 

Core capital (leverage) ratio ................................... 8.09 16.07 6.22 10.31 9.06 7.50 7.90 15.23 10.42 6.96 

Tier 1 risk-based capital ratio .................................. 10.82 14.61 8.69 14.60 11.20 12.70 9.64 34.13 17.36 9.36 

Total risk-based capital ratio ................................... 13.20 17.46 12.27 15.73 13.19 14.02 12.43 35.13 18.60 12.03 

Net loans and leases to deposits ............................ 92.39 229.99 65.61 78.20 93.66 124.27 153.07 34.60 67.72 82.12 

Net loans to total assets ......................................... 59.71 70.05 38.89 63.14 67.40 72.34 75.34 26.03 55.20 54.41 

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

Structural Changes 

56.33 27.99 25.72 80.74 69.76 57.29 49.22 74.00 81.47 59.04 

New Charters ....................................................... 93 0 0 4 24 3 1 56 4 1 

Institutions absorbed by mergers ........................ 242 0 0 17 155 19 13 5 17 16 

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

PRIOR FIRST THREE QUARTERS 

(The way it was...) 

4 0 0 0 3 0 0 0 1 0 

Number of institutions ................................. 2003 9,236 36 6 1,821 4,167 1,024 166 522 1,391 103

 ................................ 2001 9,701 60 6 1,923 4,022 1,235 246 452 1,664 93

 ................................ 1999 10,271 63 10 2,224 3,659 1,382 306 570 1,980 77 

Total assets (in billions) .............................. 2003 $8,943.1 $308.8 $1,427.8 $129.5 $3,095.8 $1,588.5 $191.9 $62.2 $192.1 $1,946.3

 ................................ 2001 7,844.2 338.9 1,287.5 119.5 3,805.2 1,137.8 145.1 46.4 197.6 766.1

 ................................ 1999 6,655.7 228.7 1,150.6 126.2 3,267.1 1,076.1 92.1 54.9 236.2 423.9 

Return on assets (%) .................................. 2003 1.38 3.93 1.05 1.25 1.30 1.44 1.54 1.36 1.09 1.31

 ................................ 2001 1.15 2.93 0.90 1.18 1.10 1.09 1.04 1.66 1.12 1.07

 ................................ 1999 1.27 3.74 0.91 1.24 1.29 1.04 1.42 1.50 1.32 1.29 

Net charge-offs to loans & leases (%) .......... 2003 0.78 5.12 1.41 0.24 0.52 0.19 1.42 1.44 0.31 0.56

 ................................ 2001 0.73 4.02 0.63 0.30 0.61 0.15 1.16 0.50 0.27 0.69

 ................................ 1999 

Noncurrent assets plus 

0.51 3.97 0.55 0.20 0.37 0.12 0.51 1.27 0.23 0.41 

OREO to assets (%) ............................... 2003 0.77 1.34 0.98 0.95 0.79 0.64 0.88 0.36 0.74 0.61

 ................................ 2001 0.81 1.49 0.72 0.89 0.88 0.60 1.31 0.30 0.65 0.64

 ................................ 1999 0.66 1.46 0.75 0.87 0.63 0.49 1.04 0.33 0.57 0.54 

Equity capital ratio (%) ............................... 2003 9.13 17.03 7.27 10.81 9.42 8.79 7.49 15.92 10.57 8.75

 ................................ 2001 8.90 12.83 6.51 10.96 9.43 8.50 7.40 17.17 10.56 8.18

 ................................ 1999 8.50 14.33 6.92 10.46 8.58 8.10 8.72 14.27 10.15 7.67 

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

Credit-card Lenders - 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 their 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 percent 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. 

THIRD QUARTER 2004 8 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE IV-A. First Three Quarters 2004, All FDIC-Insured Institutions 

FIRST THREE QUARTERS 

(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 

9,025 4,205 4,223 480 117 1,136 1,224 1,968 2,104 1,840 753 

Commercial banks ............................................... 7,660 3,755 3,458 360 87 599 1,073 1,614 1,997 1,707 670 

Savings institutions .............................................. 1,365 450 765 120 30 537 151 354 107 133 83 

Total assets (in billions) .......................................... $9,877.0 $217.7 $1,177.2 $1,326.0 $7,156.1 $3,403.1 $2,104.8 $1,745.7 $763.1 $588.8 $1,271.5 

Commercial banks ............................................... 8,244.4 194.6 927.8 971.3 6,150.7 2,834.6 1,961.5 1,595.5 718.5 496.0 638.4 

Savings institutions .............................................. 1,632.6 23.1 249.5 354.6 1,005.4 568.5 143.3 150.1 44.6 92.8 633.1 

Total deposits (in billions) ....................................... 6,383.5 179.9 936.9 899.9 4,366.8 2,112.4 1,443.9 1,115.4 536.4 437.4 738.0 

Commercial banks ............................................... 5,406.0 161.9 749.1 668.4 3,826.7 1,746.8 1,346.7 1,010.2 508.6 385.4 408.2 

Savings institutions .............................................. 977.5 18.0 187.8 231.5 540.1 365.6 97.2 105.1 27.8 51.9 329.8 

Net income (in millions) .......................................... 91,826 1,630 10,112 14,128 65,957 27,672 20,976 14,422 8,485 5,765 14,507 

Commercial banks ............................................... 78,070 1,485 8,575 10,370 57,640 23,013 19,823 13,026 8,366 4,415 9,427 

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

Performance Ratios (annualized,%) 

13,757 144 1,537 3,758 8,317 4,659 1,154 1,395 119 1,350 5,080 

Yield on earning assets .......................................... 4.95 5.60 5.59 5.22 4.76 4.74 5.06 4.32 5.79 5.17 5.57 

Cost of funding earning assets ............................... 1.43 1.50 1.57 1.48 1.39 1.57 1.52 1.26 1.22 1.32 1.35 

Net interest margin .............................................. 3.52 4.09 4.02 3.74 3.37 3.17 3.54 3.06 4.57 3.85 4.22 

Noninterest income to assets ................................. 2.11 1.26 1.27 1.87 2.31 2.56 1.91 1.57 2.72 1.49 1.87 

Noninterest expense to assets ............................... 3.06 3.54 3.16 3.08 3.02 3.32 2.96 2.43 4.01 3.10 2.76 

Loan and lease loss provision to assets ................. 0.31 0.20 0.21 0.26 0.33 0.31 0.16 0.29 0.52 0.19 0.48 

Net operating income to assets .............................. 1.23 0.99 1.15 1.33 1.23 1.10 1.28 1.05 1.50 1.25 1.56 

Pretax return on assets .......................................... 1.91 1.31 1.63 2.16 1.93 1.69 2.03 1.66 2.24 1.79 2.53 

Return on assets .................................................... 1.29 1.02 1.19 1.49 1.29 1.14 1.40 1.13 1.51 1.35 1.61 

Return on equity ..................................................... 13.51 8.60 11.74 14.03 13.91 11.98 16.39 12.42 14.63 13.87 13.79 

Net charge-offs to loans and leases ....................... 0.55 0.22 0.23 0.35 0.66 0.81 0.31 0.36 0.75 0.26 0.60 

Loan and lease loss provision to net charge-offs ... 93.63 149.51 142.97 115.22 87.51 78.48 85.03 121.50 95.38 117.04 109.68 

Efficiency ratio ........................................................ 57.74 70.12 63.32 57.23 56.57 61.57 58.60 55.41 57.91 61.76 47.63 

% of unprofitable institutions .................................. 5.66 9.73 2.06 2.71 1.71 6.16 9.40 4.93 3.04 5.54 8.37 

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

Condition Ratios(%) 

59.92 56.79 62.09 66.46 67.52 58.27 69.69 49.80 60.36 61.96 66.80 

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

Loss Allowance to: 

87.04 91.86 91.99 91.40 85.27 84.79 87.07 86.88 88.15 89.84 91.29 

Loans and leases ................................................ 1.40 1.39 1.28 1.34 1.44 1.67 1.18 1.43 1.57 1.26 1.13 

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

Noncurrent assets plus 

165.43 131.33 172.34 186.72 162.17 155.63 212.07 156.64 209.05 156.27 138.82 

other real estate owned to assets .......................... 0.57 0.82 0.61 0.53 0.56 0.56 0.39 0.68 0.61 0.65 0.66 

Equity capital ratio .................................................. 10.13 11.94 10.19 10.81 9.94 10.16 8.45 10.47 10.52 10.17 12.12 

Core capital (leverage) ratio ................................... 8.09 11.64 9.65 9.43 7.47 7.64 7.24 7.86 8.43 8.63 10.54 

Tier 1 risk-based capital ratio ................................. 10.82 17.59 13.65 13.28 9.76 10.64 9.48 9.68 10.69 12.30 14.78 

Total risk-based capital ratio .................................. 13.20 18.70 14.83 14.80 12.52 13.45 11.71 12.38 12.50 13.63 16.67 

Net loans and leases to deposits ........................... 92.39 74.33 82.70 93.58 94.97 78.48 85.17 103.24 102.09 83.13 128.38 

Net loans to total assets ......................................... 59.71 61.41 65.81 63.51 57.95 48.71 58.42 65.96 71.76 61.75 74.52 

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

Structural Changes 

56.33 82.61 79.47 67.11 49.72 45.13 62.31 59.22 67.86 73.94 57.37 

New Charters ...................................................... 93 88 3 1 1 12 37 6 6 12 20 

Institutions absorbed by mergers ........................ 242 75 124 40 3 51 31 45 48 34 33 

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

PRIOR FIRST THREE QUARTERS 

(The way it was...) 

4 4 0 0 0 2 1 0 0 0 1 

Number of institutions ................................. 2003 9,236 4,464 4,190 469 113 1,188 1,231 2,027 2,141 1,878 771

 ................................ 2001 9,701 5,191 3,964 445 101 1,264 1,293 2,132 2,227 1,971 814

 ................................ 1999 10,271 5,912 3,821 444 94 1,320 1,336 2,306 2,346 2,117 846 

Total assets (in billions) .............................. 2003 $8,943.1 $229.1 $1,159.8 $1,289.6 $6,264.6 $3,038.9 $1,858.6 $1,653.7 $445.3 $592.6 $1,353.9

 ................................ 2001 7,844.2 256.4 1,054.3 1,248.6 5,284.8 2,776.9 1,611.0 1,441.3 378.3 519.2 1,117.4

 ................................ 1999 6,655.7 279.6 986.7 1,231.5 4,157.8 2,273.1 1,419.1 1,113.0 414.2 569.5 866.9 

Return on assets (%) .................................. 2003 1.38 0.97 1.19 1.35 1.43 1.25 1.38 1.31 1.62 1.38 1.65

 ................................ 2001 1.15 0.93 1.12 1.23 1.15 1.13 0.98 1.02 1.36 1.25 1.50

 ................................ 1999 1.27 1.04 1.25 1.40 1.25 1.21 1.27 1.25 1.44 1.25 1.38 

Net charge-offs to loans & leases (%) ........ 2003 0.78 0.26 0.32 0.52 0.95 1.17 0.56 0.66 0.97 0.38 0.64

 ................................ 2001 0.73 0.26 0.29 0.72 0.85 0.81 0.69 0.73 0.63 0.38 0.79

 ................................ 1999 

Noncurrent assets plus 

0.51 0.31 0.26 0.54 0.57 0.64 0.40 0.33 0.68 0.37 0.60 

OREO to assets (%) ............................. 2003 0.77 0.91 0.73 0.64 0.81 0.84 0.60 0.96 0.74 0.78 0.64

 ................................ 2001 0.81 0.81 0.70 0.75 0.85 0.77 0.84 0.94 0.73 0.79 0.76

 ................................ 1999 0.66 0.72 0.61 0.65 0.67 0.76 0.57 0.61 0.61 0.67 0.64 

Equity capital ratio (%) ............................... 2003 9.13 11.44 10.03 10.48 8.60 8.96 8.83 8.64 10.79 9.64 9.74

 ................................ 2001 8.90 11.45 10.04 9.54 8.40 8.38 9.52 8.61 9.21 9.48 9.28

 ................................ 1999 8.50 11.09 9.68 9.15 7.85 8.17 8.62 8.32 9.00 8.64 9.02 

* 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 

Atlanta - 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, Tennessee, Texas 

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

ALL FDIC-INSURED INSTITUTIONS 9 THIRD QUARTER 2004 
FDIC Quarterly Banking Profile 

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

September 30, 2004 

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 ....................................... 0.71 0.47 0.92 0.90 0.63 0.74 0.93 1.12 1.22 0.72 

Construction and development ..................................... 0.60 0.00 2.24 0.90 0.59 0.60 0.60 0.47 1.09 0.56 

Commercial real estate ................................................. 0.51 0.24 3.69 0.76 0.52 0.33 0.52 0.71 0.96 0.35 

Multifamily residential real estate .................................. 0.27 0.00 0.50 0.62 0.26 0.10 1.76 0.30 0.72 0.51 

Home equity loans ........................................................ 0.37 0.42 0.32 0.41 0.35 0.32 0.51 0.49 0.40 0.39 

Other 1-4 family residential ........................................... 0.93 1.00 0.77 1.55 0.96 0.85 1.20 1.50 1.47 0.97 

Commercial and industrial loans ...................................... 0.66 2.28 0.48 1.42 0.77 0.69 0.96 1.44 1.47 0.46 

Loans to individuals .......................................................... 1.79 2.36 1.99 2.14 1.42 1.11 1.44 2.34 2.13 1.47 

Credit card loans ........................................................... 2.29 2.42 2.46 2.16 2.20 1.39 1.62 3.47 2.64 1.76 

Other loans to individuals .............................................. 1.45 1.66 1.74 2.14 1.34 1.07 1.40 2.24 2.10 1.37 

All other loans and leases (including farm) ...................... 0.35 0.01 0.40 0.51 0.63 0.76 0.13 0.62 0.50 0.18 

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

Percent of Loans Noncurrent** 

0.83 2.20 0.97 0.97 0.72 0.76 1.12 1.30 1.32 0.67 

All real estate loans .......................................................... 0.65 0.07 0.92 0.96 0.61 0.72 0.84 0.85 0.90 0.55 

Construction and development ..................................... 0.55 0.26 1.72 0.73 0.48 1.10 0.97 1.85 0.68 0.52 

Commercial real estate ................................................. 0.77 0.38 2.51 1.19 0.73 0.79 0.91 0.79 1.39 0.74 

Multifamily residential real estate .................................. 0.26 0.00 0.20 0.41 0.27 0.13 0.32 0.18 1.10 0.45 

Home equity loans ......................................................... 0.17 0.04 0.24 0.27 0.18 0.13 0.22 0.18 0.21 0.18 

Other 1-4 family residential ........................................... 0.74 0.34 0.74 0.93 0.74 0.81 1.12 0.81 0.77 0.59 

Commercial and industrial loans ...................................... 1.41 1.32 3.09 1.72 1.02 1.25 1.43 1.38 1.55 1.15 

Loans to individuals .......................................................... 1.32 1.94 2.33 0.80 0.58 0.61 0.49 0.90 0.81 0.77 

Credit card loans ........................................................... 1.89 2.00 2.04 1.62 1.53 1.10 1.33 3.08 2.25 1.49 

Other loans to individuals .............................................. 0.92 1.13 2.49 0.78 0.47 0.53 0.33 0.71 0.73 0.52 

All other loans and leases (including farm) ...................... 0.41 0.00 0.34 0.86 0.59 1.02 1.09 0.80 0.63 0.31 

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

Percent of Loans Charged-off (net, YTD) 

0.85 1.77 1.66 1.03 0.69 0.74 0.74 0.91 0.94 0.64 

All real estate loans .......................................................... 0.06 0.09 0.05 0.05 0.09 0.03 0.12 0.04 0.07 0.06 

Construction and development ..................................... 0.04 0.00 0.00 0.05 0.05 0.01 0.04 0.02 0.03 0.01 

Commercial real estate ................................................. 0.07 0.00 -0.23 0.09 0.08 0.03 0.40 0.08 0.11 0.02 

Multifamily residential real estate .................................. 0.03 0.00 0.38 0.08 0.04 -0.01 -0.01 0.00 0.01 0.01 

Home equity loans ........................................................ 0.09 0.09 0.02 0.04 0.13 0.04 0.03 0.09 0.04 0.10 

Other 1-4 family residential ........................................... 0.06 0.05 0.02 0.07 0.11 0.04 0.12 0.03 0.07 0.06 

Commercial and industrial loans ...................................... 0.53 4.20 0.60 0.41 0.55 0.44 1.70 0.40 0.53 0.33 

Loans to individuals ......................................................... 2.70 5.10 3.16 0.62 1.22 1.35 1.82 2.68 1.04 1.29 

Credit card loans ........................................................... 5.05 5.18 5.13 4.07 4.53 2.96 6.26 16.93 6.34 4.08 

Other loans to individuals .............................................. 1.19 4.08 2.05 0.51 0.87 1.07 1.01 1.33 0.70 0.67 

All other loans and leases (including farm) ...................... 0.21 0.00 0.10 0.00 0.54 0.51 0.00 0.26 0.39 0.13 

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

Loans Outstanding (in billions) 

0.50 4.70 1.00 0.20 0.30 0.10 0.90 0.50 0.30 0.20 

All real estate loans .......................................................... $3,554.4 $18.9 $134.7 $47.3 $1,442.1 $941.2 $81.2 $10.1 $57.5 $821.5 

Construction and development ..................................... 319.0 0.0 1.6 2.9 231.1 21.2 2.6 0.8 3.3 55.5 

Commercial real estate ................................................. 734.6 0.1 6.4 12.0 505.1 44.5 8.6 2.8 13.9 141.1 

Multifamily residential real estate .................................. 164.7 0.0 1.5 0.9 96.6 44.6 1.4 0.4 1.0 18.2 

Home equity loans ........................................................ 459.8 17.0 16.3 0.9 157.6 85.0 21.9 0.5 2.6 158.1 

Other 1-4 family residential ........................................... 1,782.7 1.8 71.9 14.4 428.3 744.9 46.4 5.4 33.0 436.5 

Commercial and industrial loans ...................................... 952.3 6.4 146.1 12.3 458.4 27.7 11.0 1.7 8.7 280.0 

Loans to individuals ......................................................... 895.5 241.2 170.4 6.7 173.2 47.3 66.4 1.9 11.1 177.2 

Credit card loans ........................................................... 365.0 223.6 60.8 0.2 17.3 6.6 10.5 0.2 0.6 45.3 

Other loans to individuals .............................................. 530.5 17.7 109.7 6.5 155.9 40.7 55.9 1.8 10.5 131.9 

All other loans and leases (including farm) ...................... 582.5 3.6 171.0 21.9 110.6 5.7 3.4 0.6 5.3 260.2 

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

Memo: Other Real Estate Owned (in millions) 

5,984.6 270.0 622.2 88.3 2,184.3 1,021.9 162.0 14.3 82.6 1,538.9 

All other real estate owned ........................................... 4,642.7 0.7 171.7 143.4 2,403.1 748.0 139.1 29.0 145.8 861.9 

Construction and development ..................................... 556.3 0.0 0.7 10.2 382.6 58.4 3.0 2.2 13.2 86.0 

Commercial real estate ................................................. 1,540.4 0.6 15.5 58.5 1,090.2 63.5 8.2 17.9 58.7 227.1 

Multifamily residential real estate .................................. 110.0 0.0 0.0 1.7 65.3 4.0 0.2 0.5 3.5 34.9 

1-4 family residential ..................................................... 2,261.1 0.0 95.5 43.3 827.5 622.2 127.6 9.1 63.2 472.6 

Farmland .......................................................................... 91.5 0.0 0.0 29.7 40.5 0.4 0.1 0.4 7.2 13.1 

* 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.
 

THIRD QUARTER 2004 10 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

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

September 30, 2004 

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 ............................. 0.71 1.20 0.75 0.50 0.74 0.64 0.61 0.95 0.80 0.85 0.59 

Construction and development ........................... 0.60 0.84 0.59 0.51 0.64 0.58 0.36 0.81 0.89 0.79 0.45 

Commercial real estate ....................................... 0.51 0.88 0.59 0.41 0.50 0.64 0.36 0.70 0.44 0.66 0.25 

Multifamily residential real estate ........................ 0.27 0.56 0.41 0.21 0.25 0.11 0.28 0.55 1.28 0.44 0.07 

Home equity loans .............................................. 0.37 0.64 0.44 0.41 0.35 0.35 0.33 0.42 0.43 0.37 0.27 

Other 1-4 family residential ................................. 0.93 1.71 1.06 0.62 0.95 0.71 0.89 1.41 1.20 1.17 0.78 

Commercial and industrial loans ............................ 0.66 1.53 1.05 0.92 0.53 0.56 0.49 0.75 0.87 0.80 0.83 

Loans to individuals ............................................... 1.79 2.37 1.89 2.07 1.75 1.84 1.75 1.63 2.10 1.44 1.78 

Credit card loans ................................................. 2.29 2.13 4.41 3.55 2.16 2.18 3.02 2.33 2.68 0.79 2.16 

Other loans to individuals .................................... 1.45 2.37 1.59 1.45 1.41 1.56 1.47 1.32 1.35 1.60 1.25 

All other loans and leases (including farm) ............ 0.35 0.55 0.51 0.45 0.33 0.42 0.21 0.38 0.27 0.55 0.34 

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

Percent of Loans Noncurrent** 

0.83 1.29 0.86 0.71 0.83 0.85 0.68 0.92 0.97 0.90 0.77 

All real estate loans ................................................ 0.65 0.95 0.66 0.60 0.65 0.57 0.41 0.98 0.54 0.77 0.71 

Construction and development ........................... 0.55 0.85 0.59 0.49 0.54 0.62 0.30 0.82 0.62 0.55 0.57 

Commercial real estate ....................................... 0.77 0.99 0.75 0.78 0.76 0.75 0.51 1.13 0.73 0.88 0.62 

Multifamily residential real estate ........................ 0.26 0.59 0.49 0.29 0.17 0.15 0.29 0.56 0.58 0.84 0.06 

Home equity loans .............................................. 0.17 0.25 0.20 0.21 0.16 0.15 0.11 0.26 0.19 0.16 0.10 

Other 1-4 family residential ................................. 0.74 0.99 0.68 0.62 0.77 0.55 0.48 1.27 0.54 0.84 0.89 

Commercial and industrial loans ............................ 1.41 1.69 1.18 1.19 1.47 2.08 1.07 1.21 1.01 1.10 1.04 

Loans to individuals ............................................... 1.32 0.96 0.79 0.90 1.41 1.78 0.85 0.76 1.52 0.54 1.22 

Credit card loans ................................................. 1.89 1.30 2.95 2.02 1.86 1.92 1.95 1.61 2.32 0.61 1.77 

Other loans to individuals .................................... 0.92 0.96 0.53 0.43 1.04 1.66 0.61 0.39 0.47 0.53 0.47 

All other loans and leases (including farm) ............ 0.41 0.98 0.75 0.57 0.36 0.42 0.35 0.34 0.37 0.89 0.80 

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

Percent of Loans Charged-off (net, YTD) 

0.85 1.06 0.74 0.71 0.89 1.07 0.56 0.91 0.75 0.81 0.81 

All real estate loans ................................................ 0.06 0.07 0.05 0.07 0.06 0.04 0.06 0.13 0.06 0.09 0.03 

Construction and development ............................ 0.04 0.06 0.05 0.05 0.03 0.01 0.02 0.07 0.07 0.06 0.01 

Commercial real estate ....................................... 0.07 0.07 0.06 0.09 0.06 0.02 0.05 0.15 0.06 0.08 0.04 

Multifamily residential real estate ........................ 0.03 0.04 0.07 0.02 0.02 0.03 0.04 0.06 0.04 0.12 -0.01 

Home equity loans .............................................. 0.09 0.07 0.05 0.11 0.10 0.04 0.11 0.14 0.11 0.13 0.03 

Other 1-4 family residential ................................. 0.06 0.08 0.05 0.06 0.06 0.03 0.06 0.14 0.05 0.11 0.04 

Commercial and industrial loans ............................ 0.53 0.54 0.49 0.56 0.53 0.48 0.46 0.45 0.55 0.40 1.13 

Loans to individuals ................................................ 2.70 0.81 1.44 2.12 2.90 3.30 1.62 1.55 3.67 1.04 3.28 

Credit card loans ................................................. 5.05 2.52 7.19 5.02 5.01 5.20 5.39 4.20 5.93 2.10 4.60 

Other loans to individuals .................................... 1.19 0.77 0.76 0.90 1.29 1.78 0.78 0.82 0.64 0.80 1.31 

All other loans and leases (including farm) ............ 0.21 0.27 0.33 0.35 0.19 0.14 0.22 0.27 0.17 0.47 0.34 

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

Loans Outstanding (in billions) 

0.50 0.20 0.20 0.30 0.70 0.80 0.30 0.40 0.80 0.30 0.60 

All real estate loans ................................................ $3,554.4 $88.6 $591.6 $606.8 $2,267.4 $826.6 $800.5 $650.9 $317.1 $247.1 $712.2 

Construction and development ............................ 319.0 9.3 83.4 78.7 147.6 37.0 99.4 68.5 28.5 43.0 42.7 

Commercial real estate ....................................... 734.6 24.8 206.6 182.9 320.2 148.1 175.0 158.8 73.3 75.9 103.5 

Multifamily residential real estate ........................ 164.7 2.1 26.0 40.1 96.6 43.9 19.3 29.2 8.5 6.5 57.4 

Home equity loans ............................................... 459.8 3.2 35.3 48.1 373.2 97.0 111.8 111.2 67.4 18.9 53.6 

Other 1-4 family residential ................................. 1,782.7 38.8 220.0 250.0 1,273.8 456.8 386.6 272.1 124.8 91.7 450.7 

Commercial and industrial loans ............................ 952.3 19.7 106.3 126.6 699.7 293.4 196.9 221.5 77.7 63.0 99.8 

Loans to individuals ................................................ 895.5 13.0 57.0 80.5 745.0 355.5 135.5 142.1 94.6 41.0 126.7 

Credit card loans ................................................. 365.0 0.2 6.0 23.7 335.0 162.5 24.5 42.9 53.7 7.9 73.5 

Other loans to individuals .................................... 530.5 12.8 51.0 56.7 409.9 193.0 111.0 99.2 41.0 33.1 53.2 

All other loans and leases (including farm) ............ 582.5 14.4 30.5 40.2 497.3 212.2 111.9 153.9 66.9 17.4 20.2 

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

Memo: Other Real Estate Owned (in millions) 

5,984.6 135.7 785.5 854.1 4,209.3 1,687.7 1,244.8 1,168.4 556.4 368.4 958.9 

All other real estate owned ..................................... 4,642.7 337.5 1,298.4 848.7 2,158.0 547.6 922.1 1,221.7 499.6 849.3 602.5 

Construction and development ............................ 556.3 40.5 222.9 169.1 123.8 22.9 128.8 111.5 50.5 191.0 51.7 

Commercial real estate ....................................... 1,540.4 121.3 600.5 370.2 448.4 138.7 349.9 335.2 183.7 335.0 197.9 

Multifamily residential real estate ........................ 110.0 10.1 39.7 32.3 27.9 7.0 16.5 41.5 8.3 29.8 6.9 

1-4 family residential ........................................... 2,261.1 140.1 394.0 271.5 1,455.5 288.8 416.1 722.8 233.8 266.8 332.8 

Farmland ............................................................. 91.5 25.7 43.4 7.4 15.0 3.4 12.1 11.1 24.9 27.5 12.5 

* 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 THIRD QUARTER 2004 
 

 

FDIC Quarterly Banking Profile 

Insurance Fund Indicators Third Quarter 2004 

• BIF Reserve Ratio Rises to 1.32 Percent 

• SAIF Reserve Ratio Declines One Basis Point to 1.33 Percent 

From June 30 to September 30, total assets of the nation's 

9,025 FDIC-insured depository institutions increased by 

$228.5 billion. Deposits, which increased by $99.5 billion 

during the period, funded about 43.5 percent of this 

growth. Domestic office deposits grew by $107.3 billion 

(2.0 percent) while deposits in foreign offices shrank by 

$7.8 billion (0.9 percent). Large domestic deposits (over 

$100,000) increased by $100.3 billion while domestic 

deposits in accounts less than $100 thousand increased by 

$7.0 billion. Quarterly growth was strongest for time 

deposits of $100,000 or more which increased by 5.9 percent ($55.3 billion) and other savings deposits which 

increased by 4.1 percent ($35.3 billion). Interest bearing 

domestic deposits increased by $113.1 billion (2.6%), while 

noninterest-bearing domestic deposits fell by $5.8 billion 

(0.6%). Brokered deposits in domestic offices grew by 

$29.8 billion (8.0%). 

Insured deposits grew by 0.7 percent during the third quarter of 2004, following second quarter growth of 0.9 percent. 

Insured deposits increased at 4,619 institutions, remained 

unchanged at 4 institutions, and declined at 4,286 institutions. Deposits insured by the Bank Insurance Fund (BIF) 

increased by 0.3 percent for the three months ending on 

September 30, 2004, reaching $2.6 trillion. During the first 

nine months of 2004, deposits insured by the BIF increased 

by 2.3 percent. Deposits insured by the Savings Association 

Insurance Fund (SAIF) grew by 1.9 percent, to $943.9 billion during the third quarter and increased by 5.3 percent 

during the first three quarters of 2004. 

The Bank Insurance Fund (BIF) grew by 1.0 percent ($357 

million) during the third quarter, ending the quarter with a 

balance of $34.5 billion (unaudited). Roughly 40 percent 

of the BIF's third quarter growth came from unrealized 

gains on securities ($77 million) and from reducing reserves 

previously set aside for future estimated failure costs ($64 

million). Without these items, the BIF reserve ratio would 

have remained unchanged from the previous quarter. On 

September 30, 2004, the BIF reserve ratio was 1.32 percent, 

one basis point higher than June 30. 

The Savings Association Insurance Fund (SAIF) increased 

during the third quarter by 0.9 percent to $12.5 billion 

(unaudited). The growth of the SAIF was not enough to 

offset the increase in SAIF-insured deposits; as a result the 

SAIF reserve ratio declined one basis point from 1.34 percent on June 30 to 1.33 percent on September 30. This 

was the lowest SAIF reserve ratio since June 1997 when the 

ratio was 1.32 percent. 

Sweeps of brokerage-originated cash management funds to 

FDIC-insured accounts of affiliate banks increased by 2.9 

percent ($2.7 billion) during the third quarter of 2004. 

Among insured institutions whose brokerage affiliates 

sweep cash management accounts into FDIC-insured 

accounts, BIF-insured brokered deposits rose by $2.0 billion 

and SAIF-insured brokered deposits increased by $730 million. During the same period, fully insured brokered 

deposits increased by 4.2 percent at all other BIF-insured 

institutions and increased at all other SAIF-insured institutions by 11.3 percent. 

There were no failures of FDIC insured institutions during 

the third quarter of 2004. For the first nine months of 

2004, three BIF member institutions with combined assets 

of $151 million have failed at an estimated cost of $17.1 

million. During the same period, one SAIF-member institution with assets of $15 million failed with an estimated 

cost of zero. For the first nine months of the previous year, 

two institutions failed; both were BIF-members. At the 

time of failure, these institutions had $1.1 billion in assets 

with estimated loss to the insurance fund of $76 million. 

Changes in Insurance Fund Balances 

(dollar figures in millions) Bank Insurance Fund 

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

2004 2004 2004 2003 2003 2003 2003 

Savings Association Insurance Fund 

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

2004 2004 2004 2003 2003 2003 2003 

Beginning Fund Balance $34,110 $34,164 $33,782 $33,462 $32,800 $32,382 $32,050 

Unrealized Gain (Loss) on 

Available-For-Sale Securities 77 –332 175 –106 –45 38 103 

Provision for Insurance Losses –64 –32 –37 –246 –543 –133 –6 

All Other Income, Net of Expenses 216 246 170 180 164 247 223 

Total Fund Balance Change 357 –54 382 320 662 418 332 

Ending Fund Balance $34,467 $34,110 $34,164 $33,782 $33,462 $32,800 $32,382 

$12,411 12,394 $12,240 $12,186 $12,083 $11,906 $11,747 

24 –109 59 -37 -16 13 33 

24 –2 1 10 -26 -45 -21 

112 124 96 101 93 119 105 

112 17 154 54 103 177 159 

$12,523 12,411 $12,394 $12,240 $12,186 $12,083 $11,906 

THIRD QUARTER 2004 12 ALL FDIC-INSURED INSTITUTIONS 
 

FDIC Quarterly Banking Profile 

TABLE I-B. Selected Insurance Fund Indicators* 

(dollar figures in millions) 

Bank Insurance Fund 

3rd Quarter 

2004 

2nd Quarter 

2004 

3rd Quarter 

2003 

%Change 

03:9-04:9 

Reserve ratio (%)............................................................................ 1.32 1.31 1.32 0.2 

Fund Balance ................................................................................ $34,467 $34,110 $33,462 3.0 

Estimated insured deposits ............................................................... 2,612,740 2,605,720 2,541,540 2.8 

SAIF-member Oakars.................................................................... 106,967 101,778 103,505 3.3 

BIF-members .............................................................................. 2,505,773 2,503,942 2,438,035 2.8 

Assessment base ........................................................................... 4,387,949 4,321,617 4,084,374 7.4 

SAIF-member Oakars.................................................................... 112,646 105,560 106,433 5.8 

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

Savings Association Insurance Fund 

4,275,303 4,216,057 3,977,941 7.5 

Reserve ratio (%) ........................................................................... 1.33 1.34 1.40 -5.0 

Fund Balance ................................................................................ $12,523 $12,411 $12,186 2.8 

Estimated insured deposits ............................................................... 943,881 926,570 872,777 8.1 

BIF-member Oakars ..................................................................... 443,613 426,997 398,239 11.4 

SAIF-member Sassers .................................................................. 91,853 92,056 94,284 -2.6 

Other SAIF members .................................................................... 408,415 407,518 380,254 7.4 

Assessment base ........................................................................... 1,127,884 1,098,143 1,060,639 6.3 

BIF-member Oakars ..................................................................... 448,460 431,102 402,340 11.5 

SAIF-member Sassers .................................................................. 119,289 117,579 119,512 -0.2 

Other SAIF members ................................................................... 560,135 549,461 538,787 4.0 

Insurance Fund Reserve Ratios* Fund Balances and Insured Deposits* 

1.37 

1.35 

1.43 1.42 

1.36 1.36 

1.38 1.39 

1.37 1.37 1.38 

1.40 

Percent of Insured Deposits 

1.37 1.36 

BIF 

SAIF 

12/99 

BIF 

Balance 

29,414 

BIF-Insured 

Deposits 

SAIF 

Balance 

SAIF-Insured 

Deposits 

2,151,454 10,281 717,591 

($Millions) 

1.34 12/00 30,975 2,299,932 10,759 755,156 1.33 1.32 1.32 1.32 1.32 12/01 30,439 2,409,566 10,935 801,171 1.31 

Target 

Ratio 

1.25 

1.27 1.26 1.25 1.25 

1.23 

1.28 1.28 

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 32,382 2,531,307 11,906 867,908 

6/03 32,800 2,562,053 12,083 876,305 

9/03 33,462 2,541,540 12,186 872,777 

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

3/04 34,164 2,586,469 12,394 914,475 

6/04 34,110 2,605,720 12,411 926,570 

9/04 34,467 2,612,740 12,523 943,881 

12/99 12/00 12/01 3/02 6/02 9/02 12/02 3/03 6/03 9/03 12/03 3/04 6/04 9/04 

* 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) 

2004** 2003** 2003 2002 2001 2000 1999 

BIF Members 

Number of institutions ............................................ 3 2 3 10 3 6 7 

Total assets ...................................................... $151 $1,088 $1,097 $2,508 $54 $378 $1,490 

SAIF Members 

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

Total assets ...................................................... $15 $0 $0 $50 $2,200 $30 $71 

**Through September 30. 

ALL FDIC-INSURED INSTITUTIONS 13 THIRD QUARTER 2004 
FDIC Quarterly Banking Profile 

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

(dollar figures in millions) 2004** 2003** 2003 2002 2001 2000 1999 

BIF Members 

Number of institutions reporting .......................... 7,875 8,041 7,995 8,125 8,327 8,572 8,835 

BIF-member Oakars ...................................... 763 806 764 801 766 743 744 

Other BIF-members ....................................... 7,112 7,237 7,232 7,324 7,561 7,829 8,091 

Total assets .................................................... $8,565,324 $7,756,149 $7,897,792 $7,335,567 $6,857,458 $6,510,744 $5,980,127 

Total deposits ................................................. 5,589,749 5,095,281 5,210,292 4,854,908 4,567,603 4,337,661 3,987,336 

Net income ..................................................... 81,683 78,814 106,183 92,506 76,489 73,430 73,952 

Return on assets (%) ........................................ 1.32 1.39 1.40 1.32 1.14 1.18 1.29 

Return on equity (%) ......................................... 14.05 15.14 15.21 14.32 12.91 13.86 15.11 

Noncurrent assets plus OREO to assets (%) ......... 0.57 0.78 0.76 0.91 0.89 0.72 0.62 

Number of problem institutions ............................ 86 103 102 116 90 74 66 

Assets of problem institutions ............................. $24,446 $29,671 $28,812 $32,176 $31,881 $10,787 $4,450 

Number of failed/assisted institutions ................... 3 2 3 10 3 6 7 

Assets of failed/assisted institutions ..................... $151 $1,088 $1,097 $2,508 $54 $378 $1,490 

SAIF Members 

Number of institutions reporting ........................... 1,150 1,195 1,186 1,229 1,287 1,332 1,387 

SAIF-member Oakars .................................... 147 138 143 133 130 122 123 

Other SAIF-members ..................................... 1,003 1,056 1,043 1,096 1,157 1,210 1,264 

Total assets .................................................... $1,311,708 $1,186,902 $1,177,458 $1,099,965 $1,011,736 $952,154 $903,532 

Total deposits ................................................. 793,714 755,810 744,022 713,599 621,824 577,100 550,703 

Net income ..................................................... 10,144 10,975 14,307 12,462 10,623 8,071 8,450 

Return on assets (%) ........................................ 1.09 1.28 1.25 1.17 1.11 0.89 0.99 

Return on equity (%) ......................................... 10.29 14.17 13.85 12.79 13.46 11.12 11.97 

Noncurrent assets plus OREO to assets (%) .......... 0.52 0.71 0.69 0.79 0.75 0.65 0.64 

Number of problem institutions ............................ 9 13 14 20 24 20 13 

Assets of problem institutions ............................. $625 $933 $1,105 $6,751 $7,923 $13,053 $5,524 

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

Assets of failed/assisted institutions ..................... $15 $0 $0 $50 $2,200 $30 $71 

* 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) 

September 30, 2004 

Commercial Banks and Savings Institutions 

Number of 

Institutions 

Total 

Assets 

Domestic 

Depostis* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks .................... 7,660 8,244,437 4,586,148 2,350,598 454,183 2,804,781 

BIF-member ............................................. 7,548 8,056,710 4,471,423 2,317,801 398,649 2,716,450 

SAIF-member ........................................... 112 187,727 114,725 32,797 55,533 88,331 

FDIC-Supervised ....................................... 4,796 1,479,312 1,088,704 653,604 98,704 752,309 

OCC-Supervised ....................................... 1,938 4,846,657 2,554,170 1,289,159 264,099 1,553,258 

Federal Reserve-Supervised ........................ 926 1,918,468 943,274 407,835 91,379 499,214 

FDIC-Insured Savings Institutions .................... 1,365 1,632,595 977,455 261,192 489,698 750,890 

OTS-Supervised Savings Institutions ............... 896 1,266,150 721,935 132,859 419,596 552,455 

BIF-member ............................................. 41 205,882 89,024 62,001 11,181 73,182 

SAIF-member ........................................... 855 1,060,268 632,911 70,858 408,415 479,273 

FDIC-Supervised State Savings Banks ............ 469 366,445 255,520 128,333 70,102 198,435 

BIF-member ............................................. 286 302,732 210,124 125,021 33,783 158,804 

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

Total Commercial Banks and 

183 63,713 45,397 3,312 36,319 39,631 

Savings Institutions .................................... 9,025 9,877,032 5,563,603 2,611,790 943,881 3,555,671 

BIF-member ................................................ 7,875 8,565,324 4,770,571 2,504,823 443,613 2,948,436 

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

Other FDIC-Insured Institutions 

1,150 1,311,708 793,032 106,967 500,268 607,235 

U.S. Branches of Foreign Banks ..................... 13 10,259 5,128 950 0 950 

Total FDIC-Insured Institutions ....................... 9,038 9,887,291 5,568,731 2,612,740 943,881 3,556,621 

* Excludes $820 billion in foreign office deposits, which are uninsured. 

THIRD QUARTER 2004 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 September 30, 2004
 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2005
 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized

 Number of institutions ........................ 7,314 92.7% 421 5.3% 79 1.0%

 Assessable deposit base ..................... $4,112 93.7% $45 1.0% $16 0.4% 

2. Adequately capitalized

 Number of institutions ........................ 58 0.7% 4 0.1% 8 0.1%

 Assessable deposit base ..................... $212 4.8% $1 0.0% $0 0.0% 

3. Undercapitalized

 Number of institutions ........................ 2 0.0% 0 0.0% 2 0.0%

 Assessable deposit base ..................... $0 0.0% $0 0.0% $1 0.0% 

NOTE: "Number" reflects the number of BIF members; "Base" reflects the BIF-assessable deposits held by both SAIF and BIF 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 September 30, 2004
 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2005
 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized

 Number of institutions ........................ 1,073 93.3% 62 5.4% 9 0.8%

 Assessable deposit base ..................... $1,113 98.7% $12 1.1% $1 0.0% 

2. Adequately capitalized

 Number of institutions ........................ 4 0.3% 2 0.2% 0 0.0%

 Assessable deposit base ..................... $2 0.2% $0 0.0% $0 0.0% 

3. Undercapitalized

 Number of institutions ........................ 0 0.0% 0 0.0% 0 0.0%

 Assessable deposit base ..................... $0 0.0% $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 2005 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 THIRD QUARTER 2004 
FDIC Quarterly Banking Profile 

Number of FDIC-Insured “Problem” Institutions, 1996–2004 

Number of Institutions 

150 

100 

50 

0 

117 

92 

84 79 

94 

114 

136 

116 114 

102 95 

12/96 12/97 12/98 12/99 12/00 12/01 12/02 12/03 3/04 6/04 9/04 

SAIF Members 

BIF Members 

SAIF Members 31 19 16 13 20 24 20 14 11 9 9
 

BIF Members 86 73 68 66 74 90 116 102 103 93 86
 

Assets of FDIC-Insured “Problem” Institutions, 1996–2004 

$ Billions 

$12 

$6 

$11 $10 

$24 

$40 $39 

$30 $30 $26 $25 

0 

20 

40 

60 

80 SAIF Members 

BIF Members 

12/96 12/97 12/98 12/99 12/00 12/01 12/02 12/03 3/04 6/04 9/04 

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

BIF Members 7 5 5 4 11 32 32 29 29 25 24 

THIRD QUARTER 2004 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 and 

revised it in December 2003. Generally, banks with variable 

interests in variable interest entities created after December 31, 

2003, must consolidate them. The timing of consolidation varies 

with certain situations with application as late as 2005. 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 bank’s balance sheet, as well as related 

income items. Most small banks are unlikely to have any “variable interests” in variable interest entities. 

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 

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 

ALL FDIC-INSURED INSTITUTIONS 17 THIRD QUARTER 2004 
FDIC Quarterly Banking Profile 

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. 

FASB Statement No. 149, Amendment of Statement 133 on Derivative 

Instruments and Hedging Activities — provides guidance on the circumstances in which a loan commitment must be accounted for as 

derivative. Under Statement No. 149, loan commitments that 

relate to the origination of mortgage loans that will be held for 

sale, commonly referred to as interest rate lock commitments, must 

be accounted for as derivatives on the balance sheet by the issuer 

of the commitment. 

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
 

estimated uninsured deposits was adjusted to consider a financial
 

institution’s better estimate. Since March 31, 2002, all institutions
 

THIRD QUARTER 2004 18 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

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. (Excluded are commitments after 

June 2003 for originated mortgage loans held for sale, which are 

accounted for as derivatives on the balance sheet.) 

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 THIRD QUARTER 2004 
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