•••• 

Third Quarter, 1994 

FDIC 

Division of Research 

& Statistics 

Don Inscoe 

Associate Director, 

Statistics Branch 

(202) 898-3940 

Tim Critchfield 

(202) 898-8557 

Jim McFadyen 

(202) 898-7027 

Ross Waldrop 

(202) 898-3951 

The FDIC 

u arte r 1Y-_______R_ic_ki_R_. T_ig_er_t, _C_ha_ir_ma_n 

anking Rofile 

COMMERCIAL BANKING PERFORMANCE -THIRD QUARTER, 1994 

• Industry Earnings Of $11.8 Billion Set New Record 

• Strong Loan Growth Helps Boost Profits 

• Net Interest Margins Widen As Interest Rates Rise 

• Loan-Loss Expense Falls To Lowest Level In 10 Years 

Commercial bank earnings reached a new quarterly 

record of $11.8 billion in the third quarter, surpassing the 

previous record of $11.5 billion, set a year earlier. Rising 

net interest income, fueled by widening margins and 

strong loan growth, was the main source of increased 

earnings. Lower loan-loss provisions, reflecting the continued decline in troubled loans, also helped propel 

earnings. These improvements more than offset a decrease in nonrecurring income. For the first time since 

the fourth quarter of 1988, commercial banks reported 

an aggregate net loss on sales of investment securities 

of $334 million. The average return on assets for the 

quarter was 1.21 percent, the third-highest ever reported. Almost 96 percent of all banks reported a profit. 

Chart A - Quarterly Net Income of 

FDIC-Insured Commercial Banks, 1990 - 1994 

Billions of Dollars 

■ Securities and Other G 

I 

ains, Net I 

12 D 11 .2 1.lJ! Net Operating Income 11.5 

I 11.1 

8.5 

I•' ;-- 8 

6.2 

■ 5.5 

~ I 4.s 

• 4.3 4 3.6 

- ■ 3.0 

• 

I 

0 I - I 1 234 1 234 1 234 1 23 41 23 

1990 199 1 1992 1993 1994 

Banks' net interest income of $37.5 billion was $974 

million above the level of the previous quarter and $2.2 

billion more than a year ago. Both net loan losses and 

provisions for future losses were at ten-year lows. Banks 

charged-off $2.4 billion (net) in the third quarter, the 

smallest amount since the first quarter of 1985. Provisions for future losses, which come directly out of pretax earnings, fell to $2.6 billion, from $2.8 billion in the 

previous quarter and $3.9 billion a year ago. This is the 

smallest quarterly provision set aside by the banking 

industry since the first quarter of 1984. Noninterest 

income, which increased $1.2 billion from the previous 

quarter, was only 2.8 percent ($538 million) higher than 

a year ago, because of reduced income from trading 

activities. Banks were able to hold noninterest expense 

growth to 3 modest 4.5 percent. 

Through the first nine months of 1994, commercial bank 

earnings of $34.0 billion were 4.3 percent ($1.4 billion) 

ahead of last year's pace, primarily because of increased growth in loans and other assets, and lower 

loan-loss provisions. Lower gains from securities sales 

(down $2.4 billion) and other nonrecurring items (down 

$1 .9 billion) limited the year-to-year increase in bottomline net income, and obscured the much stronger improvement in net operating earnings, which were 17.5 

percent ($5.0 billion) higher than a year ago. 

Chart B - Quarterly Net Interest Margins of 

FDIC-Insured Commercial Banks, 1986 - 1994 

Nel Interest Margin (%) 

s~-------~~~~~~~~ ~ Assets < $1 00 Million 

12 3 41234123412 3 4 1 234 1 2341234 12 34 12 3 

1986 1987 1988 1989 1990 1991 1992 1993 1994 

Net interest margins - the interest income banks 

earned on loans and other investments less the interest 

paid to depositors and other creditors, as a percentage 

of average interest-earning assets - widened for the 

second consecutive quarter, after narrowing in each of 

the previous five quarters. Seventy percent of all banks 

reported wider margins, with 62 percent reporting improvements of at least five basis points. The average 

net interest margin of 4.46 percent was up from 4.40 

percent in the previous quarter, and was almost identical 

to the average of a year earlier. In an environment of 

rising interest rates, both average asset yields and 

average funding costs were higher at most banks. At a 

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Office of Corporate Communications, 550 17th Street, NW, Washington, DC 20429; telephone (202) 898-6996. 

For assistance contact: Section508@fdic.gov
few money-center banks with Brazilian operations, aggregate 

interest income and interest expense both declined about $3 

billion as a result of a sharp drop in that country's inflation rate 

during the quarter. This effect caused a reduction in the entire 

industry's average funding expense and prevented the average 

asset yield from rising. 

Earning assets grew by $51.3 billion (1.5 percent) during the 

quarter, as the industry increased its holdings of loans. Banks 

reported a $27.1-billion net increase in real estate loans, a 

$22.4-billion rise in consumer loans, and a $10.7-billion increase in commercial and industrial loans. All categories of real 

estate loans grew during the quarter, led by growth in residential 

mortgages (up $20.2 billion). Real estate construction and 

development loans increased by $1 .5 billion, the first quarterly 

increase since the first quarter of 1990. Construction and development loans totaled $64.1 billion at the end of the third quarter, 

less than half the peak level of $136.4 billion, reached five years 

ago. Total loans grew by $60.2 billion, while banks' investment 

securities fell by $12.0 billion. Almost $1.4 billion of the decline 

in securities resulted from depreciation of available-for-sale 

securities in banks' portfolios. These unrealized losses were 

caused by rising interest rates. 

Rising interest rates also may have contributed to a second 

consecutive quarterly increase in certificates of deposit (CDs) 

and other time deposits, which grew by $20.2 billion while 

demand and savings deposits declined by $3.1 billion and $15.7 

billion, respectively. Two-thirds of the growth in time deposits 

was in smaller-denomination (less than $100,000) accounts. 

During the third quarter, deposits in foreign offices increased by 

$25.9 billion. In the twelve months ended September 30, they 

rose $80.6 billion (25.0 percent), while deposits in domestic 

offices increased by only $16.3 billion (0.7 percent). 

Noncurrent loans declined for the fourteenth consecutive quarter, falling $2.5 billion to $33.4 billion. For the second consecutive quarter, commercial banks' noncurrent loans set a new 

record for the smallest amount seen in the thirteen years that 

all banks have reported these data. The largest declines in 

noncurrent loans occurred at banks in the Northeast and West 

Regions, where noncurrent rates are highest, but banks in all 

regions experienced some reductions. The improving trend in 

credit losses was evidenced by an increase in the number and 

amount of negative loan-loss provisions taken during the quarter. A total of 427 banks reported negative loan-loss provisions 

totaling $331 million in the third quarter. In the previous quarter, 

411 banks reported $194 million in negative provisions, while a 

year ago 439 banks reported $167 million in negative provisions. In spite of the increase in negative provisions, the industry's aggregate loan-loss reserves remained unchanged from 

their midyear level of $52.4 billion. Owing to the decline in 

noncurrent loans, commercial banks' "coverage ratio" of reserves to noncurrent loans rose to 157.0 percent, or $1 .57 in 

reserves for every dollar of noncurrent loans. 

Equity capital registered its largest quarterly increase of the 

year, growing by $6.8 billion to $311 .8 billion, or 7.95 percent of 

total assets. Retained earnings contributed $4.9 billion to this 

increase, while unrealized losses on available-for-sale securities caused a $1-billion deduction to equity capital. 

The number of banks reporting financial results for the third 

quarter fell to 10,592, , !rom 10,716 in the previous quarter. 

Mergers remained the main cause of the declining bank count. 

Mergers absorbed 131 commercial banks during the third quarter. Seven commercial banks failed, and 13 new banks were 

chartered. The number of commercial banks on the FDIC's 

"Problem List" fell to 293 banks with combined assets of $36 

billion, from 338 banks with $42 billion in assets at midyear. 

Commercial and Industrial Loan Growth Rates* 

September 30, 1993 - September 30, 1994 

West Midwest Central Northeast 

1.30 

Southwest 

. - . . 

• I • I ' • • 

' : '

Hawaii 

-3.00 D 

Puerto Rico 

-3.19 

D Less than 0% 

D 0% 105% 

- 5% 1010% • Growth rates reflect adjustments for significant interstate migrations - Greater than 10% 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 Third Quarter 1994 
TABLE 1-A. Selected Indicators, FDIC-Insured Commercial Banks 

1994• 1993• 1993 1992 1991 1990 1989 

Return on assets (%) ............. .................................... 1.18 1.22 1.20 0.93 0.53 0.48 0.49 

Return on equny (%) ...... .. ...... ......... .. ...................•.... 14.93 15.71 15.35 12.98 7.94 7.45 7.71 

Core capfal (leverage) ratio(%) ...................... ... .•• ... 7.73 7.66 7.65 7.20 6.48 6.17 6.11 

Noncurrent assets plus 

other real estate owned to assets(%) ... .................. 1.16 1.95 1.61 2.54 3.02 2.94 2.30 

Net charge-offs to loans(%) ......... ................ .. .. .... ... .. 0.49 0.83 0.85 1.27 1.59 1.43 1.16 

Asset growth rate(%) ..................... ........................... 8.04 4.31 5.72 2.19 1.21 2.73 5.38 

Net interest margin (%).............................. ... ............ 4.36 4.44 4.40 4.41 4.11 3.94 4.02 

Net operating income growth (%) ......................... ..... 17.46 34.52 35.50 92.41 -0.63 2.53 -38.70 

Number of instnutions reporting .. ............... ......... ... ... 10,592 11 ,081 10,958 11,462 11,921 12,343 12,709 

Percentage of unprofttable institutions .. ... ... ........... ... 3.71 4.74 4.84 6.85 11.60 13.44 12.50 

Number of problem institutions .................................. 293 496 426 787 1,016 1,012 1,092 

Assets of problem instnutions (in billions) ................. $36 $281 $242 $408 $528 $342 $188 

Number of failed/assisted instnutions .... ................. ... 11 36 42 100 108 159 206 

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

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

(dollar figures In ml/lions) Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter %Change 

1994 1994 1993 93:3-94:3 

Number of instnutions reporting ........... ................................... . 10,592 10,716 11,081 -4.4 

Total employees (full-time equivalent) ... ......... ......... ............... . 1,484,388 1,495,677 1,477,014 0.5 

CONDITION DATA 

Total assets ................... .............................. ...................•........ $3,923,246 $3,892,557 $3,631 ,306 8.0 

Loans secured by real estate .............................. .............. 971,078 943,954 901 ,834 7.7 

Commercial & industrial loans ........ ................................... 575,426 564,774 529,417 8.7 

Loans to individuals .....................................•.......... ........... 460,850 438,467 403,121 14.3 

Farm loans.. ................................... .................. ...... ........... . 41,122 39,738 37,428 9.9 

Other loans & leases .......................................... ...... ........ . 238,279 239,614 232,284 2.6 

Less: Unearned income ......................................... ........... . 6,177 6,131 7,163 -13.8 

Total loans & leases .............. ............................................. . 2,280,578 2,220,417 2,096,921 8.8 

Less: Reserve for losses ............................................ ........ . 52,443 52,439 53,912 -2.7 

Net loans & leases ............................. ............ ....................... . 2,228,135 2,167,977 2,043,009 9.1 

Securities ..... ... ..................... ........ ................. ........................ . 836,980 848,993 820,957 

Other real estate owned .................... ..................... .............. . 11,920 13,269 19,898 -40.1 

Goodwill and other intangibles ............•................................. 22,506 20,255 16,846 33.6 

All other assets ..................................................................... . 823,705 842,063 730,597 

Total liabilnies and capital ........... ... ...... ................................... . 3,923,246 3,892,557 3,631 ,306 8.0 

Noninterest-bearing deposns ............................ .................... . 543,413 547,469 538,055 1.0 

Interest-bearing deposits .............. .. ............................ .......... . 2,249,788 2,218,458 2,158,283 4.2 

Other borrowed funds .......... ...... ... ........................................ . 573,111 556,460 484,206 

Subordinated debt. ...... ........................................ ...... ... ........ . 38,601 37,430 37,001 4.3 

All other liabilnies ........ ................... ....•................... ..•............. 206,538 227,762 125,186 

Equity capital. .. ............... ...... ................................•.... ............ 311,794 304,978 288,575 

Loans and leases 30-89 days past due. .................................. 26,052 25,666 28,777 -9 .5 

Noncurrent loans and leases................................................... 33,394 35,916 50,187 -33.5 

Restructured loans and leases..... .. ......................................... 6,381 6,213 11 ,366 -43.9 

Direct and indirect investments in real estate................. ...... ... 604 569 398 51 .7 

1-4 Family residential mortgages......................... .. ................. 550,016 529,785 495,877 10.7 

Mortgage-backed securnies....... .. ........................................... 330,982 335,026 338,402 

Earning assets...................................................... ................... 3,388,640 3,337,385 3,206,481 5.7 

Long-term assets (5+ years).... ....................................... ........ 556,722 549,924 519,017 7.3 

Volatile liabilities................ .. ...................... .............................. 1,121 ,351 1,078,928 NIM 

Foreign office deposits.... ............................................. ........... 403,247 377,397 322,654 25.0 

Unused loan commitments......................... ............................. 1.690,060 1,596,330 1,381 ,368 22.4 

Off-balance-sheet derivatives................ ............ .............. ........ 15,768,716 15,322,066 11 ,988,343 31.5 

Preliminary Preliminary 

First Three First Three 3rd Quarter 3rd Quarter %Change 

INCOME DATA Qtrs 1994 Qtrs 1993 %Change 1994 1993 93:3-94:3 

Total interest income............................................. $189,128 $183,648 3.0 $65,055 $62,143 4.7 

Total interest expense........................................... 80,305 79,195 1.4 27,545 26,858 2.6 

Net interest income.................. .. ......................... 108,823 104,453 4.2 37,510 35,285 6.3 

Provision for loan losses.................. .......... ...... .. ... 8,027 12,901 -37.8 2,550 3,921 -35.0 

Total noninterest income.................. .. ... ................ 56,534 55,306 2.2 19,715 19,177 2.8 

Total noninterest expense..................................... 105,875 103.989 1.8 36,246 34,690 4.5 

Securities gains (losses)................ ....................... 343 2,703 -87.3 (334) 986 NIM 

Applicable income taxes..................... ... ................ 17,786 14,891 19.5 6,267 5,409 15.9 

Exlraordinary gains, net ................ ... ... ... .............. (29) 1,914 NIM 4 55 -93.0 

Net income...... ..... ................................ ............... 33,982 32,595 4.3 11,831 11 ,484 3.0 

Net charge-offs........................................... ... ........ 8,097 12,730 -36.4 2,438 3,901 -37.5 

Cash dividends............... ...... ................... ...... ........ 17,941 14,029 27.9 6,918 5,291 30.8 

Net operating income.......................................... 33,789 28,767 17.5 12,066 10,720 12.6 

••New accounting rules and/or reporting detail became effective March 31, 1994. See Notes to Users, pp. 18-19. NIM · Not meaningful 

FDIC Quarterly Banking Profile 

Third Quarter 1994 3 FDIC-Insured Commercial Banks 
TABLE Ill-A. First Three Quarters 1994, FDIC-Insured Commercial Banks 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

FIRST THREE QUARTERS Prel/minary 

(The way It Is . . . ) 

All 

Institutions 

than $100 

Million 

to 

$1 Billio11 

to 

$1 OBillion 

than $10 

Billion 

Northeast 

Southeast Central I Midwest 

Sou thwest .West 

Nu mber of institutions reporting .... ... ......... 10,592 7.411 2,790 334 57 846 1,756 2,318 2,645 1,884 1,143 

Total assets (ln billions) .............•............... $3,923.2 $320.3 $678 .7 $1,087.6 $1,836.7 $1,516.9 $632.0 $649 .0 $255.7 $294.8 $574 .8 

Total deposits (in billions) ................. .... ..... 2,793 .2 278.3 569.7 776.6 1,168.6 961 .9 472.7 475.7 195.4 241 .9 445.7 

Net income (in millions) .... .............. ..... ... ... 33,982 2,792 6,074 11,166 13,950 12,405 5,591 5,482 2,837 2,568 5,099 

% of unprofitable institutions ..................... 3.7 4.2 2.5 3.0 1.8 6.3 3.4 2.9 1.9 2.7 9.9 

% of institutions with earnings gains ......... 52 .7 51 .1 55.6 63.8 63.2 62 .2 61 .1 49 .6 48 .7 43 .5 63.9 

Performance Ratios (annualized, %) 

Yield on earning assets ......... ... ............... .. 7.57 7.53 7.52 7.60 7.58 8.04 7.26 7.10 7.66 6.87 7.62 

Cost of funding earning assets .................. 3.21 2.84 2.76 2.87 3.69 4.01 2.89 2.90 2.92 2.56 2.45 

Net interest margin .......... .......................... 4.36 4.69 4.75 4.73 3.88 4.03 4.37 4.20 4.74 4.31 5.1 7 

Noninterest income to earning assets ....... 2.26 1.15 1.44 2.65 2.58 2.89 1.65 1.56 2.44 1.70 2.40 

Noninterest expense to earning assets ..... 4.24 3.85 3.97 4.52 4.24 4.48 3.85 3.62 4.34 4.03 4.86 

Net operating income to assets ..... .. ... ... .... 1.17 1.18 1.22 1.40 1.02 1.09 1.21 1.16 1.50 1.18 1.22 

Return on assets ..... ........... .. ... .................. 1.18 1.18 1.22 1.40 1.04 1.11 1.22 1.16 1.51 1.17 1.21 

Return on equity ........................................ 14.93 11 .87 13.70 17.00 14.84 15.29 15.20 14.40 17.15 13.92 13.94 

Net charge-offs to loans and leases ... ...... . 0.49 0.18 0.32 0.61 0.53 0.76 0.24 0.26 0.43 0.12 0.58 

Loan loss provision to riet charge-offs ...... 99.14 150.02 120.62 111.30 81 .35 92.31 109.39 139.23 116.41 143.67 86.84 

Condition Ratios(%) 

Loss allowance to: 

Loans and leases .................................... 2.30 1.69 1.75 2.23 2.67 2.80 1.78 1.80 1.88 1.75 2.68 

Non current loans and leases.. ..... ........... 157.04 146.09 137.71 167.47 158.53 137.87 190.83 183.43 191.41 185.43 156.33 

Noncurrent assets plus 

other real estate owned to assets ..... ..... . 1.16 0.92 1.07 1.06 1.29 1.50 0.82 0.74 0.80 0.73 1.48 

Equity capital ratio .... ............. ............... ... .. 7.95 9.99 8.97 8.28 7.02 7.40 7.96 8.02 8.88 8.50 8.61 

Core capit al (leverage) ratio ............. ......... 7.73 10.14 8.97 8.07 6.65 7.22 7.88 7.93 8.91 8.27 7.92 

Net loans and leases to deposits ........... ... 79.77 62.73 69.44 87.11 83.99 81 .67 81.30 81 .39 78.40 62 .00 82.55 

Growth Rates (year-to-year, %) 

Assets ........................ .... ..... ................... ... 

Equity capital ..... ........................................ 

8.0 

. -

- -- -

-

-

-

10.5 

. 9.8 . 8.3. 4.1. 1.3 . 5.0 . 

Net interest income ............... .................... 4.2 - - - - 5.6 5.9 0.8 8.8 2.3 2.1 

Net income ........ ....... .......... .. ................. .. .. 4.3 - - - - 9.2 7.9 -4.7 7.8 -18 .6 13.0 

Noncurrent assets plus 

other real estate owned ........................... -36 .0 - - - - -37 .0 -32 .6 -28.1 -26 .8 -32.7 -41.4 

Net charge-offs ........ .............. ............... ..... -36 .4 - - - -35 .8 -35.9 -44 .3 -17 .8 -47 .3 -37.4 

Loan loss provision ................................ .. . -37 .8 - - - - -37 .6 -44.7 -39.2 -22.9 56 .5 -42.4 

PRIOR FIRST THREE QUARTERS 

(The way It was .. . ) 

Number of institutions .......................1993 11 ,081 7,932 2,778 319 52 886 1,855 2,431 2,726 1,966 1,217 

........... .............................. 1991 12,073 8,967 2,737 321 48 1,013 1,937 2,651 2,905 2,120 1,447 

......................................... 1989 12,826 9,928 2,527 330 41 1,086 1,962 2,860 3,042 2,381 1,495 

Total assets (in billions) ..................... 1993 $3,631 .3 $335.7 $679.7 $1 ,047.7 $1,568.2 ~1,372.6 $575.5 $599.1 $245.6 $290.9 $547 .6 

............ ............................. 1991 3,433.2 356.5 670.5 1,042.1 1,364.2 1,293.1 523.1 560.8 229.1 271 .9 555.2 

......................................... 1989 3,223 .6 367.9 605.3 1,045 .3 1,205.1 1,273.9 466.1 524.7 209.0 255.9 493.9 

Return on assets (%) ...... .......... ........ 1993 1.22 1.23 1.21 1.32 1.16 1.13 1.23 1.31 1.46 1.49 1.11 

........... ........ ...................... 1991 0.59 0.93 0.76 0.63 0.38 0.31 0.71 0.88 1.09 0.67 0.57 

...................... ............. ...... 1989 0.57 0.89 0.93 0.83 0.08 0.10 0.95 1.03 1.10 0.06 1.00 

Net charge-offs to loans & leases (%) 

...... ..................... .............. 1993 0.83 0.29 0.49 0.94 1.00 1.25 0.41 0.50 0.57 0.25 0.96 

........................... .............. 1991 1.51 0.58 0.84 1.63 1.94 2.30 1.04 0.80 1.02 1.18 1.17 

....... , ... , ............... .............. 1989 0.90 0.64 0.64 0.91 1.08 0.93 0.50 0.66 1.09 1.53 1.07 

Noncurrent assets plus 

OREO to assets (%) ...................... 1993 1.95 1.19 1.48 1.74 2.46 2.63 1.33 1.11 1.14 1.09 2.65 

... ...................................... 1991 3.11 1.74 2.15 2.93 4.07 4.35 2.29 1.77 1.61 2.46 3.26 

2.36 1.92 1.82 1.82 3.25 2.76 1.34 1.33 1.47 4.76 2.54 ················· ····· ········· ····•·"•• 1989 

Equity capital ratio (%) ...................... 1993 7.95 9.92 8.71 8.14 7.06 7.24 8.09 8.19 8.76 8.33 8.73 

... ,........ ............................. 1991 6.71 9.14 7.79 6.96 5.35 5.97 7.14 7.38 8.19 6.77 6.69 

......................................... 1989 6.34 9.15 7.60 6.39 4.80 5.70 7.07 6.94 7.76 5.90 6.25 

*New accounting rules and/or reporting detail became effective March 31, 1994. See Notes to Users, pp . 18-19. 

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

Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 Third Quarter 1994 
TABLE IV-A. Third Quarter 1994, FDIC-Insured Commercial Banks 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I 

THIRD QUARTER Preliminary All than $100 to to than $1 0 North- South- Mid-

(The way It Is . .. ) Institutions Mil lion $1 Billion $10 Billion Billion east east Central I west 

Number of institutions reporting ...... .......... 10,592 7,411 2,790 334 57 846 1,756 2,318 2,645 

Total assets (in billions) ...................... .. ..... $3,923.2 $320.3 $678.7 $1 ,087.6 $1 ,836.7 ~1 ,516.9 $632.0 $649.0 $255.7 

Total deposits (in billions) ....... .. ................. 2,793.2 278.3 569.7 776.6 1,168.6 961.9 472.7 475.7 195.4 

Net income (in millions) ............................. 11 ,831 968 2,114 3,786 4,962 4,455 1,892 1,851 1,004 

% of unprofitable institutions ..................... 4.1 4.6 2.8 3.9 1.8 6.9 3.6 3.3 2.7 

% of institutions with earnings gains ......... 57.0 54.9 61.7 63.2 57.9 65.1 63.9 55.7 52.2 

Performance Ratios (annualized,3⁄4) 

Yield on earning assets ................... .. .... .... 7.74 7.83 7.88 7.97 7.51 7.90 7.56 7. 44 8.19 

Cost of fu nding earning assets ................. . 3.28 2.97 2.95 3.17 3.54 3.74 3.15 3.20 3.18 

Net interest margin ... .. .. .. .... .. ..................... 4.46 4.86 4.93 4.80 3.97 4.16 4.41 4.24 5.01 

Noninterest income to earning assets.. ... .. 2.35 1.22 1.44 2.73 2.69 3.02 1.69 1.62 2.52 

Noninterest expense to earning assets ... . 4.31 3.98 4.04 4.59 4.31 4.57 3.88 3.69 4.45 

Net operating income to assets ........ ......... 1.24 1.23 1.28 1.44 1.10 1.19 1.22 1.16 1.61 

Return on assets .. ..................................... 1.21 1.22 1.26 1.40 1.08 1.17 1.21 1.15 1.59 

Return on equity .. ........................ .............. 15.35 12 .21 14 .07 16.98 15.59 16 .1 3 15 .17 14.37 17.96 

Net charge-offs to loans and leases .......... 0.43 0.20 0.34 0.56 0.42 0.61 0.26 0.26 0.48 

Loan loss provision to net charge-offs ...... 104.60 139.00 121 .34 119.12 83.08 95 .27 107.54 147.43 115.06 

Growth Rates (year-to-year, 3⁄4) 

Net interest income ...... .... ....................... .. 6.30 - - - 8.22 7.08 2.29 13.25 

Net income .. .......................................... ... . 3.02 - - - - 6.35 7.08 -7.79 8.43 

Net charge-offs .......................................... -37 .50 - - - -38 .88 -26 .67 -44 .74 10.93 

Loan loss provision ......... .......................... -34 .95 - - - - -41.76 -37.35 -28.96 -1.02 

PRIOR THIRD QUARTERS 

(The way It was ... ) 

Return on assets (%) ........................ 1993 1.28 1.20 1.21 1.42 1.22 1.23 1.24 1.35 1.53 

.. ................... ...... ............. 1991 0.50 0.83 0.70 0.61 0.23 0.27 0.64 0.81 1.02 

........ .. ............ ..................1989 -0.12 0.82 0.80 0.75 -1.61 -1.42 0.88 0.94 0.99 

Net charge-offs to loans & leases(%) 

... ..... .. .. ........................... . 1993 0.75 0.30 0.51 0.88 0.85 1.06 0.40 0.52 0.47 

.. .... ........... ... ........... ..... .... 1991 1.64 0.64 0.93 1.68 2.18 2.52 1.21 0.89 1.05 

.. ...... .. ......................... ..... 1989 0.96 0.71 0.75 1.04 1.07 0.97 0.58 0.64 1.42 

Commercial Banks Make More Credit Available 

to Businesses and Consumers 

Quarterly Increase in Loans Quarterly Increase in Unused Loan 

($ Billions) Commitments ($ Billions) 

$57.4 $60.2 $95.2 

9/93 12/93 3/94 6/94 9/94 9/93 12/93 3/94 6/94 9/94 

Over the past twelve months, most of the growth has Over the past twelve months, most of the growth has occurred in real estate loans. In the third quarter of 1994, occurred in unused credit card commitments. In the third 

home mortgage loans increased by $20.2 billion, credit quarter of 1994, unused credit card commitments card loans increased by $11 .2 billion, and commercial increased $50.2 billion and unused commitments for and industrial loans increased by $10.6 billion. loans to businesses and consumers increased $40.8 

billion. 

West 

Southwest 

1,884 

$294 .8 

241 .9 

827 

2.7 

51 .1 

7.19 

2.78 

4.41 

1.73 

4.12 

1.18 

1.13 

13.31 

0.15 

187.72 

3.75 

-10.95 

-34 .92 

158.55 

1.29 

0.72 

-0.32 

0.25 

0.97 

1.77 

West 

1,143 

$574 .8 

445.7 

1,803 

9.8 

63.4 

7.96 

2.65 

5.31 

2.50 

4.92 

1.32 

1.26 

14 .64 

0.51 

90.54 

4.12 

8.17 

-44 .30 

-39 .97 

1.23 

0.27 

0.81 

0.97 

1.29 

1.10 

FDIC Quarterly Banking Profile 

Third Quarter 1994 5 FDIC-Insured Commercial Banks 
TABLE V-A. Real Estate Loan Performance and Other Real Estate Owned, FDIC-Insured Commercial Banks_ 

Asset Size Distribution Geoaraohic Distribution bv Reoion 

Less $100 Million $1 Billion Greater East I West 

September 30, 1994 All than $100 to to than $10 North- South- Mid- SouthInstitutions Million $1 Billion $10 Billion Billion east east Central I west west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ................ ...... ...... .. 1.25 1.22 1.07 1.24 1.40 1.64 1.05 1.08 0.78 1.11 1.28 

Construction and development... ........................... 1.75 0.96 1.28 1.97 2.17 2.90 1.14 1.55 1.01 0.94 1.95 

Commercial real estate... ...................................... 1.29 0.97 0.98 1.29 1.70 1.98 0.78 1.03 0.75 0.95 1.50 

Multifamily residential real estate.......................... 1.06 0.82 0.64 1.09 1.47 1.56 0.47 1.05 0.50 0.67 1.39 

1-4 Family residential* ..... .... .................................. 1.26 1.51 1.19 1.23 1.26 1.42 1.29 1.18 0.85 1.25 1.21 

Home equity loans ........ .......... .... ................. ... ....... 0.76 1.40 0.79 0.68 0.76 1.05 0.49 0.57 0.54 1.57 0.65 

Commercial RE loans not secured by real estate ... 1.52 0.93 1.68 1.03 1.71 2.52 0.45 1.15 1.43 0.38 1.38 

Percent of Loans Noncurrent .. 

All real estate loans.............. ................................... 1.98 1.08 1.37 1.75 2.87 3.17 1.16 1.16 1.11 1.16 2.52 

Construction and development... ..................... ...... 5.26 1.10 2.27 3.72 10.67 9.70 1.79 2.82 1.20 1.08 9.26 

Commercial real estate... ........................ ..... ........ . 3.05 1.42 1.93 2.83 4.90 5.13 1.88 1.68 2.19 1.72 3.65 

Multifamily residential real estate .... .................... .. 2.72 1.31 1.89 2.48 4.12 5.47 1.32 1.08 1.96 0.93 3.25 

1-4 Family residential* ..... ............................. ........ . 1.00 0.84 0.87 0.96 1.16 1.47 0.73 0.75 0.51 0.77 1.13 

Home equity loans ............. ........................ ............ 0.53 0.74 0.58 0.46 0.54 0.79 0.32 0.36 0.19 0.89 0.46 

Commercial RE loans not secured by real estate ... 2.82 1.72 0.97 1.51 3.54 6.36 1.85 0.89 2.18 0.58 1.03 

Percent of Loans Charged-off 

(net, annualized) 

All real estate loans.. ............. .................................. 0.31 0.06 0.16 0.24 0.54 0.69 0.07 0.10 0.03 -0.03 0.40 

Construction and development.................. ............ 0.86 0.09 0.54 0.35 1.78 2.52 0.00 0.26 0.19 -0.11 0.92 

Commercial real estate ......... ................................ 0.52 0.07 0.19 0.45 1.03 1.26 0.16 0.19 0.01 -0.10 0.59 

Multifamily residential real estate .......................... 0.45 0.16 0.41 0.39 0.63 1.02 0.07 0.13 -0.05 -0.11 0.77 

1-4 Family residential* ........................................... 0.13 0.06 0.08 0.10 0.20 0.28 0.03 0.03 0.05 0.03 0.17 

Home equity loans ............. .................................... 0.21 0.17 0.10 0.13 0.33 0.23 0.08 0.03 0.03 0.10 0.45 

Commercial RE loans not secured by real estate ... 0.75 0.53 0.18 0.57 0.88 1.92 0.04 -0.14 -0.14 -0.09 0.38 

Total Loans Outstanding (in billions) 

All real estate loans................... .............................. $971 .1 $98.6 $232.4 $299.2 $340.9 $277.8 $207.1 $170.1 $64.3 $68.9 $182.9 

Construction and development... ..... ...................... 64 .1 6.5 16.4 21 .2 20.0 14.3 15.8 10.4 3.9 5.7 14.0 

Commercial real estate ...... .. ................................. 278.6 26 .8 78 .3 92.1 81 .5 73 .8 61 .0 52.1 17.0 21 .0 53 .8 

Multifamily residential real estate .......................... 30.6 2.3 8.4 10.7 9.2 7.7 6.4 6.1 2.3 2.1 6.1 

1-4 Family residential* ........................................... 475.1 49.5 108.9 145.8 170.8 132.4 107.0 82.1 31 .5 36.7 85.3 

Home equity loans ................................................. 74 .9 2.5 13.0 26.6 32.9 26 .5 13.1 13.5 2.5 0.8 18.5 

Commercial RE loans not secured by real estate ... 16.7 0.3 1.1 4.2 11 .1 5.3 2.3 2.1 0.5 0.9 5.5 

Other Real Estate Owned (in millions) 

All other real estate owned ................... .. ........ ......... $11 ,920 $894 $2,126 $2,249 $6,651 $6,358 $1,498 $893 $516 $685 $1 ,970 

Construction and development... ........................... 2,298 124 511 724 939 963 408 208 99 122 499 

Commercial real estate.. ........... ... ...................... ... 6,335 437 1,005 1,110 3,783 3,478 771 494 314 388 889 

Multifamily residential real estate ......... ..•....... ..... .. 527 36 120 62 309 322 31 36 16 20 102 

1-4 Family residential ............................................ 1,686 236 437 325 688 681 265 140 58 110 433 

Farmland ............................................................... 174 61 53 20 40 14 24 16 28 45 47 

Other real estate owned in foreion offices ............. 900 0 0 8 892 900 0 0 0 0 0 

*Excludes home equity loans. 

**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. 

Concentration and Composition of Off-Balance-Sheet Derivatives 

September 30, 1994 (Notional Amounts*) 

All Other Participants (627 Banks) 

so.a Trillion (4.9%) 

• Notional amounts do not represent either the net market position or the credit exposure of banks' 

off-balance-sheet derivatives activities; they represent the gross value of all contracts written. 

•• Includes foreign rate swaps, foreign currency options, and all other forwards, swaps and options. 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 6 Third Quarter 1994 
SAVINGS INSTITUTION PERFORMANCE -THIRD QUARTER, 1994 

• Savings Institutions Earned $2.1 Billion 

• Quarterly Loan-Loss Provisions At Record Low 

• Assets Increased $7. 1 Billion During The Quarter 

• No Savings Institutions Fail During The Quarter 

Private-sector savings institutions earned $2.1 billion in the 

third quarter of 1994, for an annualized return on assets 

(ROA) of 0.86 percent. Net income was $349 million more 

than in the second quarter and $950 million higher than a 

year earlier. The improvement resulted from lower loanloss expense and increased noninterest revenues. The 

provision for loan losses, which totaled $488 million, was 

the lowest since thrifts began reporting quarterly provisions 

in 1987. Noninterest income increased by $134 million from 

the previous quarter, as one large institution in the West 

Region reported a $152-million increase due to asset sales. 

Thrifts showed a $257-million decline in noninterest expense during the third quarter. Securities and extraordinary gains totaled only $12 million, but net operating 

income, which excludes securities and extraordinary gains, 

reached $2.1 billion, the highest level since quarterly reports were first filed in 1984. Ninety-three percent of all 

savings institutions were profitable in the quarter. 

Quarterly Net Income, 1990 -1994 

As a result of rising interest rates, net interest margins fell 

to 3.34 percent in the third quarter from 3.40 percent last 

quarter and 3.46 percent a year ago. While average asset 

yields rose 15 basis points, they were out-paced by a 21 

basis-point increase in funding costs during the quarter. 

Over half of all thrifts, with about one-third of the industry's 

assets, showed some improvement in net interest margins. 

Institutions with over $1 billion in assets showed a 9 basispoint drop in their net interest margins, as their asset yields 

increased by 15 basis points and their funding costs increased by 25 basis points. The West Region, where large 

institutions predominate, had the sharpest margin decline 

in the quarter, while the Northeast Region, with a prevalence of smaller institutions, saw margins widen. 

Quarterly Net Interest Margins of 

FDIC-Insured Savings Institutions, 1990 - 1994 

Net Interest Margin (%) 

4 

. 

5 r,--r--r-r---r-r--r-,---r-,----;--- 1.--.--r--,--,-,-1.--,--, I Billions of Dollars 

3~ - --~ ---~ ---~----.---~ • Securities and Other Gains Net 

I 2.4 

D 2.1 Net Operating Income 2 1.8 1.7 

-1 

-2 

-3 '---- --'--~___.,___ _ ___..___ ____, 

1234123412341234123 

1990 1991 1992 1993 1994 

Earnings for the first three quarters of this year, at $5.2 

billion, were below the pace set in 1993, when thrifts earned 

$5.3 billion. However, net operating income, at $5.3 billion, 

exceeded the amount for the same period of 1993 by 

almost $300 million. Provisions for future loan losses in the 

first three quarters of the year were $1 .9 billion, a decline 

of 42 percent from $3.3 billion last year. Lower gains on 

securities sales, coupled with extraordinary losses in the 

first quarter of this year, accounted for the decline in bottom-line net income. Securities gains added $348 million 

to thrift earnings in the first three quarters of 1993, when 

interest rates were falling. In contrast, securities gains in 

the first three quarters of 1994 totaled only $51 million. 

.Assets< $100 Million 

3.5 

3.32% 

2.5 

2 .._,__,__,__,__,__,__,__,_........_........__,___,___,___,___,___,___,___,__~ 

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

1990 1991 1992 1993 1994 

Earnings rose in the two largest regions, the Northeast and 

the West, which together account for almost two-thirds of 

industry assets. Thrifts in the Midwest Region also reported 

higher earnings, but the other three regions reported declines in quarterly net income. Small institutions in the West 

Region have been slower to recover from real estate problems than their larger counterparts. West Region institutions with less than $100 million in assets reported an 

aggregate loss for the quarter, while the region's larger 

institutions reported positive earnings. 

The industry's loan-loss reserves fell, but the ratio of reserves to noncurrent loans, the "coverage ratio", increased 

during the quarter due to declines in noncurrent loans. Net 

charge-offs of $804 million exceeded loan-loss provisions 

of $488 million during the quarter. Th is contributed to the 

FDIC Quarterly Banking Profile 

Third Quarter, 1994 7 FDIC-Insured Savings Institutions 
$470-million decline in reserves, to 1.27 percent of total 

loans and leases, from 1.36 percent at the end of last 

quarter. Noncurrent loans fell by $1.1 billion (10 percent) 

during the quarter. As a result, the coverage ratio rose to 

75 cents for each dollar of noncurrent loans at the end of 

the third quarter, from 72 cents in the previous quarter and 

60 cents a year ago. This ratio has more than doubled since 

early 1991. 

Reserve Coverage Ratio * 

1990-1994 

$ Billions Coverage Ratio 

30 ----------------~100% 

24 

18 

12 

6 •••••···········7·······················-················· 

20% 

Loan-Loss Reserves ($) 

1234123412341234123 

1990 1991 1992 1993 1994 

•Loan-Loss Reserves to Noncurrent Loans and Leases 

Troubled real estate assets- noncurrent real estate loans 

plus other real estate owned (OREO) - declined $1 .8 

billion in the third quarter, to $15.1 billion. Noncurrent real 

estate loans fell by $1 .1 billion, while OREO declined by 

$725 million. These troubled real estate assets comprise 

96 percent of all troubled assets at savings institutions. 

Institutions in the Northeast and West regions, which have 

the highest noncurrent rates, showed the greatest improvement in the third quarter. Noncurrent real estate loans fell 

$577 million in the West Region and OREO declined by 

$298 million. Thrifts in the Northeast Region reported a 

$511-million drop in noncurrent real estate loans while 

OREO was reduced by $193 million. The Southwest Region was the only region to show an increase in noncurrent 

real estate loans, which grew by $45 million. OREO fell in 

this region by $123 million. An accounting rule change 

(FASB 114) may have led to the reclassification of in-substance-foreclosure loans from OREO to noncurrent loans. 

Total assets increased during the quarter by one percent, 

or $7.1 billion, to just over $1 trillion. The largest increase 

was in loans secured by 1-4 family residential properties, 

which grew by $6.2 billion. Securities increased two percent, or $4.7 billion, during the quarter. Loan and securities 

growth was partially offset by a $3.7-billion drop in other 

assets, primarily cash equivalents and short-term liquid 

assets. 

Troubled Real Estate Asset Rates* by Region 

1990-1994 

Percent 

8 

6 

4 ,, --

2 --7

West 

0'---------------------' 

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

1990 1991 1992 1993 1994 

• Loans secured by real estate past due 90 days or more or in nonaccrual 

status plus other real estate owned (OREO) as a percent of total real 

estate loans plus OREO. 

Savings institutions funded asset growth in the third quarter 

with increased nondeposit borrowings. For the eighth consecutive quarter, thrifts reduced their reliance on deposits 

and increased their use.of other borrowed funds. Deposits 

declined by $8.6 billion while other borrowed funds increased by $15.0 billion. The industry's equity capital continued to increase, by $930 million during the quarter, and 

is now $2.9 billion higher than a year ago. The industry's 

core capital (leverage) ratio was 7.70 percent at the end of 

the third quarter, up from 7.63 percent last quarter and 7.43 

percent a year ago. 

The number of insured private-sector savings institutions 

fell to 2,182 from 2,217 at the end of last quarter. Twentyfive thrifts migrated to the commercial bank industry, producing a net transfer of $9.5 billion in assets. Consolidation 

within the thrift industry accounted for a reduction of 13 

institutions. No savings institutions failed in the third quarter. So far this year only two institutions have failed. The 

number of "problem" savings institutions continued to 

shrink. At the end of the quarter, there were 84 "problem" 

institutions, with $59 billion in assets, compared to 95 

institutions, with assets of $71 billion, at the end of the 

second quarter. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 Third Quarter, 1994 
TABLE 1-8. Selected Indicators, FDIC-Insured Savings Institutions* 

1994** 1993** 1993 1992 1991 1990 

Return on assets (%)......... ... ... ............. .... .. ......... .... 0.70 0.71 0.70 0.65 0.08 -0.37 

Return on equity(%)........................................... .... 8.81 9.54 9.24 9.48 1.26 -6 .68 

Core capttal (leverage) ratio(%) ............................. 7.70 7.43 7.45 6.77 5.54 4.62 

Noncurrent assets plus 

other real estate owned to assets (%) ................ ... 1.57 2.44 2.10 3.07 3.96 3.98 

Net charge-offs to loans (%) .................................. .. 0.53 0.62 0.65 0.59 0.65 0.61 

Asset growth rate (%) .............................................. 0.02 -4.05 -2.85 -7.44 -11 .61 -11.79 

Net interest margin(%) ........................................... 3.37 3.51 3.48 3.40 2.76 2.27 

Net operating income grow1h (%) ............................ 5.97 15.01 11 .62 NIM NIM NIM 

Number of institutions... ........ .... ............................... 2,182 2,297 2,262 2,390 2,561 2,815 

Percentage of unprofitable institutions .................... 6.51 5.57 5.84 7.57 18.35 30.09 

Number of problem institutions ................................ 84 169 146 276 410 480 

Assets of problem institutions (in billions) .............. . $59 $103 $92 $183 $291 $298 

Number of failed/assisted institutions ...................... 2 8 8 81 163 223 

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

TABLE 11-8. Aggregate Condition and Income Data, FDIC-Insured Savings Institutions* 

(dollar figures in millions) Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter %Change 

1994 1994 1993 93:3-94:3 

Number of institutions reporting ............................................. .. 2,182 2,217 2,297 -5.0 

Total employees (full-time equivalent) ...................... ........ ...... . 269,946 279,665 286,529 -5.8 

CONDITION DATA 

Total assets ........................................................................... .. $1,006,205 $999,074 $1,006,017 0.0 

Loans secured by real estate ............... ........................... .. 594,296 588,478 604,552 -1.7 

1-4 Family residential.. ................................ ................... . 456,749 450,508 463,146 -1.4 

Multifamily residential property ........ ............................... . 63,640 63,740 64,721 -1.7 

Commercial real estate .................... ........... ................... .. 53,361 54,321 57,729 -7.6 

Construction, development and land ... ... .. ..................... .. 20,546 19,909 18,956 8.4 

Commercial & industrial loans ..................... .................... .. 9,522 9,443 10,008 -4.9 

Loans to individuals ......... ............... ... ... ...................... ...... . 38,466 38,121 36,795 4.5 

Other loans & leases ....................................................... .. 1,557 1,733 1,522 2.3 

Less: Unearned income & contra accounts ..................... .. 10,724 10,904 9,493 13.0 

Total loans & leases .......................................................... .. 633,116 626,872 643,383 -1.6 

Less: Reserve for losses .................................................... . 8,054 8,524 8,856 -9 .1 

Net loans & leases ........................... .. ....... .. ........................... 625,063 618,348 634,527 -1.5 

Securities .............................................................................. . 296,233 291,531 268,602 

Other real estate owned ......................... ............................... 5,067 5,783 9,780 -48.2 

Goodwill and other intangibles ............................................ .. 5,823 5,736 6,067 -4.0 

All other assets ............................. ...... ................................. .. 74,021 77,676 87,041 

Total liabilities and capttal. ... ............................................... .... . 1,006,205 999,074 1,006,017 0.0 

Deposits .. ... .................. ........................................................ .. 748,318 756,951 780,715 -4.2 

Other borrowed funds ...................................... ........ ... .......... . 163,403 148,407 132,677 

Subordinated debt .......... ..................................................... .. 2,485 2,515 2,699 -7.9 

All other liabilities ....................................... .. .... ................. .... . 11,065 11,225 11,892 

Equity capital. ................................ ...................................... .. 80,935 79,975 78,034 

Loans and leases 30-89 days past due................................... 8,315 8,749 10,431 -20.3 

Noncurrent loans and leases .................................................. . 10,743 11,873 14,715 -27.0 

Restructured loans and leases ......................................... ..... .. 8,028 8,804 11 ,815 -32.1 

Direct and indirect investments in real estate ........................ .. 491 607 868 -43.5 

I\. lg age-backed securities .... .... .......................................... .. 216,346 210,369 189,790 

Earning assets ................................. .................. .. ................... . 940,416 932,228 932,006 0.9 

FHLB Advances (TFR filers only) ............................................ 83,349 79,247 74,956 11.2 

Unused loan commitments....... .......................... .................. .. 70,917 72,984 95,947 -26.1 

Preliminary Preliminary 

First Three First Three 3rd Quarter 3rd Quarter %Change 

INCOME DATA Qtrs 1994 Qtrs 1993 %Change 1994 1993 93:3-'14:3 

Total interest income ............................................ . $47,927 $51,011 -6.0 $16,552 $16,865 -1.9 

Total interest expense .......................................... . 24,729 26,829 -7.8 8,774 8,813 -0.4 

Net interest income .......... ... ............................... . 23,198 24,181 -4.1 7,778 8,053 -3.4 

Provision for loan losses ...................................... . 1,921 3,306 -41.9 488 1,083 -55.0 

Total noninterest income ...................................... . 4,671 5,800 -19.5 1,746 1,948 -10.4 

Total noninterest expense .... ................................ . 17,673 18,832 -6.2 5,810 6,568 -11.5 

Securities gains (losses) ..................................... . . 51 348 -85.3 10 91 -89.2 

Applicable income taxes ....................................... . 2,972 2,916 1.9 1,090 959 13.7 

Extraordinary gains, net ................................... .. .. (165) 56 NIM 2 (285) NIM 

Net income ...... ......................... ....... .............. .... .. 5,189 5,331 -2.7 2,148 1,198 79.4 

Net charge-offs .... ............. .. ............. ..... ...... ....... ... . 2,450 2,972 -17.6 804 945 -14.9 

Cash dividends ..................................................... . 1,549 1,478 4.8 477 414 15.2 

Net operating income ........................................ .. 5,319 5,020 6.0 2,140 1,408 51 .9 

'Excludes Institutions In Resolution Trust Corporation conservatorshlp and one self-llquldatlng Institution. NIM - Not meaningful 

...New accounting rules and/or reporting detail became effective March 31, 1994. See Notes to Users, pp.18-19. 

FDIC Quarterly Banking Profile 

Third Quarter, 1994 9 FDIC-Insured Savings Institutions 
TABLE Ill -B Flrst Th ree Q uarters 1994 FDIC -I nsuredSavm~s ' nst tut ons* 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

FIRST THREE QUARTERS Pre/Im/nary All than $100 to to than $5 North- South- Mid- South-

(The way It Is . .. ) Institutions Million $1 Billion $5 Billion Billion east east Central I west west West 

Number of institutions reporting ................ 2,182 1,012 1,003 137 30 799 345 552 160 143 183 

Total assets (in bill ions) ..... ... .. ......... ..... ..... $1 ,006.2 $51 .3 $290.8 $297 .0 $367 .1 $335.0 $82.4 $153.2 $52.4 $56.9 $326 .3 

Total deposits (in billions) .......................... 748.3 43.8 236.6 214.4 253.5 267.9 63.2 114.3 37.4 36 .5 229.1 

Net income (in millions) .................. ......... .. 5,189.2 312.7 1,794.2 1,746.4 1,336.0 2,281.9 530.6 869.6 215.5 403.5 888.2 

% of unprofitable institutions .................... . 6.5 6.9 5.5 8.0 20.0 4.8 7.0 3.6 3.8 6.3 24 .6 

% of institutions with earnings gains ......... 34 .1 32.7 33.3 49.6 40.0 39.0 38.6 28.6 20.6 38.5 29.5 

Performance Ratios (annualized, 3⁄4) 

Yield on earning assets ............ ................. 6.97 7.18 7.12 7.03 6.78 7.09 7.06 7.09 6.96 6.74 6.82 

Cost of funding earning assets .................. 3.60 3.49 3.50 3.60 3.69 3.33 3.68 3.73 3.96 3.87 3.69 

Net interest margin .................................... 3.37 3.69 3.62 3.42 3.09 3.75 3.38 3.37 3.00 2.87 3.13 

Noninterest income to earning assets ....... 0.68 0.59 0.63 0.76 0.66 0.61 0.72 0.64 0.71 1.04 0.69 

Noninterest expense to earning assets ..... 2.57 2.84 2.73 2.56 2.41 2.66 2.55 2.42 2.52 2.45 2.58 

Net operating income to assets ................. 0.72 0.81 0.83 0.81 0.55 0.91 0.90 0.90 0.60 0.96 0.37 

Return on assets.. ..................................... 0.70 0.82 0.84 0.80 0.50 0.93 0.89 0.77 0.57 0.96 0.37 

Return on equity .... .................................... 8.81 8.52 9.46 10.09 7.06 11 .21 10.50 8.92 7.18 13.17 5.03 

Net charge-offs to loans and leases .. .... .. .. 0.53 0.11 0.21 0.50 0.85 0.49 0.18 0.11 0.09 0.31 0.89 

Loan loss provision to net charge-offs ...... 78.43 144.40 107.60 90.48 66.76 74.99 76.24 120.30 183.39 75.42 76.66 

Condition Ratios(3⁄4) 

Loss allowance to: 

Loans and leases .................................... 1.27 0.87 1.14 1.46 1.30 1.55 1.04 0.82 0.78 0.80 1.40 

Noncurrent loans and leases .................. 74.97 66.19 85.81 85.78 63 .77 67 .74 92.52 124.85 129.47 60.56 71.65 

Noncurrent assets plus 

other real estate owned to assets ........... 1.57 1.17 1.35 1.67 1.73 2.06 1.09 0.56 0.62 1.44 1.85 

Noncurrent RE loans to RE loans ............. 1.69 1.26 1.28 1.73 2.02 2.27 1.08 0.63 0.59 1.37 1.97 

Equity capital ratio ..................................... 8.04 9.83 8.97 8.12 7.00 8.46 8.47 8.72 7.86 7.44 7.33 

Core capital (leverage) ratio ...................... 7.70 9.77 8.83 7.79 6.43 8.28 8.23 8.46 7.43 7.04 6.76 

Gross real estate assets to gross assets.. 79 .63 73.16 75.28 78.01 85.31 74.95 78.28 81 .16 78.45 75.62 84.95 

Gross 1-4 family mortgages to gr. assets. 44.56 51.27 44.66 37.93 48.90 40.16 46.90 48.72 44.14 30.45 49.12 

Net loans and leases to deposits .............. 83.53 77.41 76.94 80.36 93.41 72.30 82.17 84.36 83 .04 72.91 98.40 

Growth Rates (year-to-year, 3⁄4) 

Assets ....................................................... 0.0 - - - - 0.4 -8.6 1.2 3.3 -3.3 1.5 

tt .. .. tt tt .. .. Equity capital ............................................. - - - - Net interest income................................... -4.1 - - - -1 .4 -11 .8 -5.2 -5.3 -5.0 -4.1 

Net income................................................ -2.7 - - - - 51 .9 -12.9 -24.2 -43.8 -44 .5 -7.8 

Noncurrent assets plus 

other real estate owned........................... -35.4 - - - - -33 .8 -40.1 -26.8 -29.4 -49.8 -35.4 

Net charge-offs .......................................... -17.6 - - - - -25.2 -34.7 -0.4 -35.9 -2.6 -13.4 

Loan loss provision ................................... -41 .9 - - - -42.0 -64.2 -45.3 -4.7 -25 .5 -41 .2 

PRIOR FIRST THREE QUARTERS 

(The way It was .. . ) 

Number of institutions ....................... 1993 2,297 1,061 1,063 146 27 835 378 575 169 149 191 

........ ................. .. ............ 1992 2,443 1,129 1,123 161 30 867 427 601 183 157 208 

................. .......... ............ 1991 2,606 1,219 1,168 190 29 919 473 633 189 166 226 

Total assets (in billions) ..................... 1993 $1,006.0 $53.9 $307.7 $311 .5 $332.9 $333 .6 $90.1 $151.4 $50.7 $58.9 $321.4 

............ ........................... 1992 1,048.5 56.5 326.6 331 .0 334.4 357.1 111 .4 151.2 49.2 61.3 318.3 

1,133.6 60.6 336.2 392.5 344.3 377.7 129.7 160.1 50.0 67 .1 348.9 ·······································1991 

Return on assets (%) .................. ...... 1993 0.71 1.05 0.99 0.61 0.51 0.61 0.92 1.03 1.03 1.65 0.40 

0.64 0.85 0.79 0.56 0.53 0.49 0.78 0.88 0.97 1.52 0.42 

....................................... 1991 0.06 0.35 0.19 0.04 -0.11 -0.34 0.01 0.53 0.50 0.42 0.15 

·································· ·· ···1992 

Net charge-offs to loans & leases (%) 

....................................... 1993 0.62 0.16 0.28 0.50 1.09 0.64 0.24 0.11 0.15 0.33 0.99 

........................... ............1992 0.56 0.22 0.36 0.64 0.74 0.86 0.38 0.20 0.26 0.28 0.56 

........................... ............ 1991 0.63 0.28 0.49 0.77 0.68 1.05 0.60 0.20 0.25 0.42 0.46 

Noncurrent assets plus 

OREO to assets (%) ........ ....... 1993 2.44 1.65 2.00 2.56 2.85 3.12 1.67 0.78 0.90 2.77 2.90 

...................... ................. 1992 3.33 1.90 2.60 3.48 4.14 4.21 2.71 1.12 1.29 4.37 3.73 

······················ ····· ········· ···1991 3.93 2.34 3.21 4.63 4.11 5.13 3.65 1.40 1.83 8.47 3.31

Equity capital ratio (%) ...................... 1993 7.76 9.19 8.53 7.48 7.07 7.89 8.04 8.45 7.70 6.93 7.37 

·······································1992 6.99 8.32 7.45 6.81 6.49 6.98 7.24 7.66 6.77 6.16 6.79

6.08 7.71 6.69 5.61 5.73 6.28 5.80 6.66 5.23 3.89 6.24 

*Excludes 1nst1tut1ons in Resolution Trust Corporation conservatorsh1p and one self-liquidating 1nst1tut1on. 

ttNew accounting rules and/or reporting detail became effective March 31, 1994. See Notes to Users, pp.18-19. 

···································· ···1991 

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

Rhode Island, Vermont, U.S. VirQ,n Islands ' ' 

Southesst-Alabarna, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia Central -Illinois, Indiana, Kentucky, Michigan, Ohio, Wisconsin 

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

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

West-Alaska, Arizona,, Caiifornia, C_olorado, Hawaii, Idaho, Montana, Nevada, Oregon, Pacific Islands, Utah, Washington, Wyoming 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Third Quarter, 1994 
TABLE IV . B Th" Ir d Quar er 1994 FDIC-InsuredSav nas nst tut ons• 

Asset Size Distri bution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

THIRD QUARTER Preliminary 

(The way It Is . .. ) 

All 

Institutions 

than $100 

Million 

to 

$1 Billion 

to 

$5 Billion 

than $5 

Billion 

Northeast Southeast Central I 

Midwest 

Southwest West 

Number of institutions reporting .............. .. 2,182 1,012 1,003 137 30 799 345 552 160 143 183 

Total assets (in billions} ................... .... ...... $1 ,006.2 $51 .3 $290.8 $297.0 $367 .1 $335.0 $82.4 $153.2 $52.4 $56.9 $326.3 

Total deposits (in billions} ..................... ..... 748.3 43 .8 236.6 214.4 253.5 267.9 63 .2 114.3 37.4 36 .5 229.1 

Net income (in millions} ............ ................. 2,148 101 614 662 770 830 177 336 112 99 594 

% of unprofitable institutions............... .... .. 6.6 8.1 5.4 5.8 3.3 5.5 8.4 4.7 2.5 6.3 18.0 

% of institutions with earnings gains ....... .. 42.6 41.4 41 .2 60.6 50.0 50.2 46 .7 36.4 31.3 38.5 33.9 

Performance Ratios (annualized, 3⁄4) 

Yield on earning assets ... ..... ..................... 7.11 7.32 7.28 7.18 6.90 7.26 7.24 7.24 7. 17 6.94 6.90 

Cost of funding earning assets .................. 3.77 3.58 3.63 3.79 3.90 3.46 3.83 3.89 4.16 4.1 2 3.90 

Net interest margin .................................... 3.34 3.75 3.65 3.40 3.00 3.79 3.40 3.34 3.01 2.82 3.00 

Noninterest income to earning assets ....... 0.75 0.57 0.58 0.79 0.88 0.64 0.67 0.58 0.78 0.93 0.94 

Noninterest expense to earning assets.. .. 2.50 2.84 2.68 2.53 2.27 2.63 2.55 2.36 2.24 2.44 2.46 

Net operating income to assets ................. 0.86 0.80 0.85 0.90 0.84 0.99 0.88 0.89 0.86 0.70 0.74 

Return on assets ....................................... 0.86 0.79 0.85 0.90 0.85 1.00 0.87 0.88 0.87 0.70 0.74 

Return on equity .. ...................................... 10.74 8.08 9.52 11.19 12.08 11 .90 10.26 10.1 6 10.99 9.49 10.02 

Net charge-offs to loans and leases .......... 0.51 0.10 0.22 0.48 0.82 0.57 0.11 0.12 0.1 0 0.40 0.79 

Loan loss provision to net charge-offs ...... 60.65 191.22 91 .53 62 .00 51 .65 57 .70 104.84 107.38 107.16 62.34 57.32 

Growth Rates (year-to-year, 3⁄4) 

Net interest income ........ ....... ................... . -3.4 - - - - 0.9 -8.9 -4.1 -3.2 -6.6 -6.2 

Net income ........... ......... .......... .................. 79.4 - - N/M -18.8 -3.3 -14.9 -40.6 87.7 

Net charge-offs ......................................... . -14.9 - - - - -8.5 -57.9 36 .2 -38.6 33.9 -18.9 

Loan loss provision ....... ....... .. ................... -55 .0 - - - - -44 .5 -70.1 -36 .3 -42.6 11.9 -61.4 

PRIOR THIRD QUARTERS 

(The way It was . .. ) 

Return on assets (%) ........................ 1993 0.48 1.02 0.97 -0.15 0.53 0.02 0.98 0.92 1.04 1. 15 0.39 

···························· ··· ········1992 0.60 0.93 0.85 0.33 0.56 0.43 0.78 0.91 1.03 1.78 0.28 

.... .......................... ......... 1991 -0.06 0.41 0.05 -0.06 -0.26 -0.49 0.02 0.53 0.33 0.33 -0.03 

Net charge-offs to loans&leases (%} 

.......................... ............. 1993 0.59 0.17 0.27 0.50 0.99 0.61 0.23 0.09 0.16 0.30 0.93 

.. ... .. .......... ..... .............. ... 1992 0.56 0.19 0.33 0.67 0.74 0.89 0.32 0.14 0.17 0.23 0.58 

······ ··················· ··········· ···1991 0.74 0.29 0.54 0.87 0.88 1.26 0.63 0.22 0.19 0.31 0. 60 

*Excludes 1nst1tut1ons in Resolution Trust Corporation conservatorsh1p and one self-hqu1dat1ng 1nst1tut1on. NIM - Not meaningful 

Spread Between Short-Term and Long-Term Yields 

30-Year Treasury Bonds Versus 3-Month Treasury Bills 

Yield(%) 

10 

Yield on 30-Year Treasury Bonds 

8 

6 

4 

2 

Yield on 3-Month Treasury Bills 

0 

1990 1991 1992 1993 1993 1993 1993 1994 1994 1994 

40 40 40 10 20 30 40 10 20 30 

30-Year Bond 8.55 7.85 7.53 7.08 6.86 6.32 6.13 6.56 7.36 7.59 

3-Month Bills 6.99 4·.54 3.07 2.96 2.97 3.00 3.06 3.24 3.99 4.48 

Spread 1.56 3.31 4.46 4.12 3.89 3.32 3.07 3.32 3.37 3.11 

FDIC Quarterly Banking Profile 

Third Quarter, 1994 11 FDIC-Insured Savings Institutions 
TABLE V-B. Real Estate loan Performance and Other Real Estate Owned, FDIC-Insured Savings Institutions* 

Asset Size Distribution Geographic Distributi on by Region 

Less $100 Million $1 Billion Greater East I West 

September 30, 1994 All 

Institutions 

than $100 

Million 

to 

$1 Billion 

to 

$5 Billion 

than $5 

Billion 

Northeast Southeast Central I Midwest 

Southwest West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate .............................. 1.26 1.93 1.25 1.12 1.27 1.48 1.20 0.96 1.20 1.16 1.24 

Construction, development and land ... .................. 0.89 1.10 0.89 0.85 0.83 0.95 0.88 0.93 0.61 0.54 1.05 

Commercial real estate ........ ................ ................. 1.40 1.89 1.43 1.45 1.20 1.51 1.50 1.06 2.10 0.98 1.29 

Multifamily residential real estate .......................... 1.16 1.51 1.06 1.02 1.27 1.31 1.25 0.63 0.90 0.53 1.23 

1-4 Family residential ........................... ................. 1.28 2.02 1.27 1.10 1.28 1.51 1.20 0.99 1.16 1.31 1.24 

Percent of Loans Noncurrent .. 

All real estate loans ................................................ . 1.69 1.26 1.28 1.73 2.02 2.27 1.08 0.63 0.59 1.37 1.97 

Construction, development and land ..................... 2.22 1.28 2.00 3.21 1.70 4.53 1.36 0.68 0.35 1.13 3.37 

Commercial real estate ........ ............... .................. 3.24 2.47 2.94 3.38 3.62 4.06 2.16 1.74 2.55 2.29 3.12 

Multifamily residential real estate ........ .................. 2.97 2.93 2.17 3.96 2.70 4.81 2.27 1.24 0.92 2.05 2.69 

1-4 Family residential ............................................ 1.30 1.05 0.90 1.06 1.78 1.62 0.88 0.49 0.41 1.25 1.65 

Percent of Loans Charged-off 

(net, annualized) 

All real estate loans.. .. ............................................. 0.47 0.08 0.19 0.42 0.76 0.41 0.13 0.09 0.03 0.20 0.82 

Construction, development and land ........... .......... 0.42 0.21 0.33 0.65 0.40 1.03 0.30 0.21 -0.10 0.01 0.44 

Commercial real estate...................... ......... .......... 1.15 0.27 0.49 1.13 2.13 0.93 0.46 0.37 0.14 0.98 1.97 

Multifamily residential real estate ............ ....... ..... .. 1.29 0.35 0.58 0.93 1.83 0.53 0.69 0.29 0.23 0.19 1.87 

1-4 Family residential ........ ..... .... ......................... .. 0.27 0.04 0.09 0.22 0.47 0.29 0.06 0.04 0.02 0.15 0.45 

Total Loans Outstanding (in billions) 

All real estate loans ................... ................. .. .. ......... $594.3 $32.6 $174.8 $155.1 $231 .8 $178.1 $50.2 $92.7 $27.9 $23.8 $221 .7 

Constru ction, development and land ..................... 20 .5 1.8 10.1 5.6 3.0 4.3 4.2 4.4 1.0 2.4 4.3 

Commerci al real estate ......................................... 53.4 2.7 19.4 16.2 15.1 22 .3 4.7 5.4 2.0 1.8 17.1 

Multifami ly residential real estate.......................... 63 .6 1.3 12.6 18.7 31 .1 15.1 1.5 6.8 1.4 1.5 37.4 

1-4 Family residential. ........................................... 456.7 26 .8 132.8 114.6 182.6 136.4 39.8 76.1 23 .5 18.2 162.9 

Other Real Estate Owned (in millions) ..* 

All other real estate owned ........ .. .... ........ ................ $5,067 $151 $1,473 $1 ,977 $1,465 $2,389 $310 $225 $136 $464 $1 ,544 

Construction, development and land .... .. ............... 1,384 20 466 760 138 761 107 33 15 211 257 

Commercial real estate ............. ............. ............. .. 1,643 46 537 628 432 786 122 108 105 124 397 

Multifam ily residential real estate ......... .. ............... 865 18 230 353 264 293 9 29 18 117 399 

1-4 Family residential. ....... ...... .. ............................ 1,819 81 429 450 858 721 108 87 30 65 808 

Troubled Real Estate Asset Rates..** 

(3⁄4 of total RE assets) 

All real estate loans .... .. .. .... .......... ............ ............ ... 2.52 1.71 2.11 2.97 2.64 3.56 1.69 0.87 1.07 3.25 2.65 

Construction, development and land ..................... 8.39 2.36 6.31 14.75 6.05 18.82 3.81 1.42 1.85 9.25 8.84 

Commercial real estate.. ........... .. .......................... 6.13 4.12 5.56 6.98 6.29 7.33 4.64 3.67 7.38 8.52 5.32 

Multifamily residential real estate .. ........................ 4.27 4.27 3.93 5.74 3.52 6.63 2.83 1.66 2.18 9.21 3.71 

1-4 Family residential ................................ .. .......... 1.69 1.35 1.22 1.45 2.24 2.14 1.15 0.60 0.54 1.60 2.14 

*Excludes 1nst1tut1ons in Resolution Trust Corporation conservatorsh1p and one self-llqu1dat1ng 1nst1tut1on. 

**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 other real estate owned" is shown net of valuation allowances. The individual categories of OREO do not net out valuation allowances of TFR filers. 

****Noncurrent real estate loans plus other real estate owned as a percent of total real estate loans plus OREO. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 12 Third Quarter, 1994 
ALL FDIC-INSURED INSTITUTIONS 

• Loan Growth Sustains Rapid Pace In Third Quarter 

• Total Deposits Boosted By Growth In Foreign Offices 

• BIF-lnsured Deposits Unchanged; Coverage Ratio Reaches $1.03 

• SAIF-lnsured Deposits Fall; Coverage Ratio Rises To $0.29 

At the nation's 12,774 private-sector FDIC-insured institutions, total loans grew $66 billion (2.1 percent) during the 

third quarter and total assets increased $38 billion (0.8 

percent) to $4.93 trillion. This was the second consecutive 

quarter in which loan growth exceeded $60 billion, led by 

gains in real estate loans (up $33 billion), loans to individuals 

(up $23 billion) and commercial and industrial loans (up $11 

billion). Asset categories registering declines for the quarter 

included securities, down $7 billion (although mortgagebacked securities rose $2 billion), and the "all other assets" 

category, which declined $22 billion primarily due to the 

revaluation of certain trading account assets. 

In contrast to the second quarter, when total deposits declined slightly, deposits increased $19 billion (0.5 percent) 

as growth in foreign-office deposits (up $26 billion) outpaced 

the decline in domestic deposits (down $7 billion). Including 

U.S. branches of foreign banks, deposits insured by the Bank 

Insurance Fund (BIF) were unchanged from the prior quarter. Including RTC conservatorships, deposits insured by 

the Savings Association Insurance Fund (SAIF) decreased 

$3.6 billion (0.5 percent) during the quarter as a $2.6 billion 

gain in private-sector insured deposits was offset by a $6.2 

billion decline in insured deposits in RTC conservatorships. 

Seven FDIC-insured institutions failed in the third quarter, all 

of which were BIF-membercommercial banks and which had 

aggregate assets of $604 million. Thirteen institutions (12 

BIF members and one SAIF member) with total assets of 

$1.06 billion have failed year-to-date, compared to 44 failures in the first three quarters of 1993. On September 30, 

the BIF had a balance of $19.4 billion (unaudited), or $1.03 

for each $100 of insured deposits; the SAIF had a balance 

of $2.0 billion (unaudited) and a coverage ratio of 29 cents. 

These coverage ratios are up from 93 cents and 24 cents, 

respectively, at the end of June. 

An institution's insurance fund membership and primary 

federal supervisor are generally determined by the institution's charter type. BIF members are predominantly commercial banks supervised by one of the three federal banking 

agencies, and SAIF members are predominantly savings 

institutions supervised by the Office of Thrift Supervision 

(OTS). However, charter switches and deposit acquisitions 

can alter the relationships among charter type, primary federal supervisor and insuring fund. These topics are discussed below. 

"Sasser'' institutions. Since 1989, institutions have been 

permitted to switch charter type and primary federal supervisor without changing insurance fund membership. In the 

third quarter of 1994, 13 SAIF-member institutions changed 

charters, with 11 becoming state-chartered savings banks, 

supervised by the FDIC, and two becoming state-chartered 

commercial banks, also supervised by the FDIC. On September 30, 308 SAIF-member institutions were subject to 

supervision by one of the three federal banking agencies, 

including 233 state-chartered savings banks and 75 commercial banks. 

"Oakar'' deposits. A member of one insurance fund may 

acquire deposits insured by the other fund, but this portion 

of the acquiring institution's deposits retains coverage under 

the other fund. On September 30, 1994, 687 BIF-member 

institutions held an estimated $167 billion in SAIF-insured 

deposits, or 24.2 percent of all SAIF-insured deposits (up 

from 22.2 percent in June); and 43 SAIF-member institutions 

held an estimated $8.6 billion in BIF-insured deposits, or 0.5 

percent of all BIF-insured deposits (up from 0.3 percent). 

Estimated FDIC-Insured Deposits by Fund Membership and Type of Institution 

September 30, 1994 

(dollar figures In ml/lions) Number of Total Total Estimated Insured Deposits 

Institutions Assets Deposits BIF SAIF Total 

Private-Sector Commercial and Savings Institutions 

FDIC-Insured Commercial Banks ......................................... 

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

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

FDIC-Insured Savings Institutions .... ................ .... ..... ........... 

OTS-Supervised Savings Institutions ............................... 

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

SAi F-member• ............ ................ ................ ................. .. 

FDIC-Supervised State Savings Banks .. .......................... 

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

SAIF•member ... ... .. .......... ...................................... ........ 

Total Private-Sector Commercial and 

Savings Institutions ........................................................ 

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

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

Other FDIC-Insured Institutions 

RTC Conservatorships............. ........................................... 

U.S. Branches of Foreign Banks ......................................... 

Total FDIC-Insured Institutions ............................................ 

10,592 3,923,246 2,793,201 1,723,684 133,949 1,857,633 

10,517 3,906,562 2,780,403 1,722,759 125,260 1,848,019 

75 16,684 12,798 925 8,689 9,614 

2,182 1,006,205 748,318 162,033 551 ,745 713,778 

1,578 772,151 561,480 24,409 510,506 534,915 

17 73,709 55,278 16,695 36,688 53,382 

1,561 698,442 506,202 7,715 473,818 481,533 

604 234,055 186,838 137,623 41,239 178,863 

371 185,051 149,011 137,620 4,703 142,324 

233 49,004 37,827 3 36,536 36,539 

12,774 4,929,451 3,541,519 1,885,717 685,695 2,571,411 

10,905 4,165,321 2,984,692 1,877,074 166,651 2,043,725 

1,869 764,130 556,827 8,643 519,044 527,686 

3 3,574 1,629 0 1,626 1,626 

51 10,780 3,771 2,184 0 2,184 

12,828 4,943,805 3,546,919 1,887,901 687,321 2,575,222 . . *Excludes one self-hqu1dat1ng savings 1nst1tut1on with less than $1 million in SAIF-1nsured deposits . 

**Includes one conservatorship with total assets of $68 million that was resolved at close of business 9/30/94. 

Note: The 6/30/94 QBP incorrectly reported the total assets of RTC conservatorships. The correct figure was $11 ,999 million. 

FDIC Quarterly Banking Profile 

Third Quarter, 1994 13 All FDIC-Insured Institutions 
TABLE 1-C. Selected Indicators, All FDIC-Insured Institutions* 

(dollar figures In m/1/lons) 1--__ 1_9_94_*_ ___ _1993_ _ -*• - - -'---'-'-'- 1993 -------'1992 --'--'-=---- 1991 1990

Number of institutions reporting ..................................... . 12,774 13,378 13,220 13,852 14,482 15,158 

Total assets .................................................................... . $4,929,451 $4,637,323 $4,707,037 $4,535,890 $4,543,642 $4,648,642 

Total deposits ................................. ........................... ..... . 3,541,519 3,477,053 3,528,439 3,527,044 3,594,303 3,637,267 

Number of problem institutions ............. .......... ................ . 377 665 572 1,063 1,426 1,492 

Assets of problem institutions (in billions) ..... .................. . $95 $384 $334 $592 $819 $640 

Number of failed/assisted institutions ............................. . 13 44 50 181 271 382 

Assets of failed/assisted institutions (in billions) .... .... .. .... $1.29 $9.11 $9.69 $88 $142 $145 

** As of September 30. 

TABLE 11-C. Aggregate Condition and Income Data, All FDIC-Insured Institutions* 

(dollar figures In mllflons) Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter % Change 

1994 1994 1993 93:3-94:3 

Number of institutions reporting .............................................. . 12,774 12,933 13,378 -4.5 

Total employees (full-time equivalent) ................ .................... . 1,754,334 1,775,342 1,763,543 -0.5 

COND/TlON DATA 

Total assets ................................................ .. .......................... . $4,929,451 $4,891,630 $4,637,323 6.3 

Loans secured by real estate.............. .. .. ................ ......... . 1,565,374 1,532,432 1,506,386 3.9 

1-4 Family residential.. .. ................................................ 1,006,766 980,293 959,023 4.6 

Home equity loans ................ ...................................... . 92,105 90,823 92,414 -0.3 

Multifamily residential property ..................................... . 94,288 94,276 93,551 0.8 

Commercial real estate ....... .. ................................ .. .. ... . . 331,939 329,288 323,249 2.7 

Construction, development and land ............................ . 84,654 82,501 87,607 -3.4 

Other real estate loans ................................................. . 47,727 46,074 42,956 11 .1 

Commercial & industrial loans ................................... ....... . 584,948 574,217 539,424 8.4 

Loans to individuals ..................................................... ..... . 499,316 476,588 439,916 13.5 

Credit cards & related plans ........................................... . 178,670 168,070 151,961 17.6 

Other loans & leases ....... ......... .............................. ........... 280,957 281,085 271,234 3.6 

Less: Unearned income & contra accounts ......... ............. . 16,900 17,035 16,656 1.5 

Total loans & leases ............................... ...... ... ................... . 2,913,695 2,847,288 2,740,304 6.3 

Less: Reserve for losses ............................ ........................ . 60,497 60,963 62,768 -3.6 

Net loans & leases .................................... ............................ . 2,853,198 2,786,325 2,677,536 6.6 

Securities ........................................................... .................. . 1,133,213 1,140,525 1,089,559 

Other real estate owned ....................................................... . 16,987 19,051 29,678 -42.8 

Goodwill and other intangibles .. ................... ............... ....... .. . 28,329 25,992 22,913 23.6 

All other assets ...................................................................... 897,725 919,738 817,638 

Total liabilities and capital.. ......................... ........................... .. 4,929,451 4,891,631 4,637,323 6.3 

Deposits.. .. ............................................... ....................... ....... 3,541,519 3,522,878 3,477,053 1.9 

Other borrowed funds .............. .. ........................ ... ................ . 736,514 704,867 616,883 

Subordinated debt.. ........................................... .................... 41,086 39,945 39,700 3.5 

All other liabilities .................................................................. . 217,603 238,988 137,078 

Equity capital .............................. .......................................... . 392,729 384,953 366,609 

Loans and leases 30-89 days past due.................................. . 34,367 34,415 39,208 -12.4 

Noncurrent loans and leases .................................................. . 44,137 47,789 64,903 -32.0 

Restructured loans and leases ... ............................................ . 14,409 15,017 23,180 -37.8 

Direct and indirect investments in real estate ... ...................... . 1,095 1,176 1,267 -13.5 

Mortgage-backed securities ........................ ......... ..... ............. . 547,327 545,395 528,192 

Earning assets ........................................................................ . 4,329,056 4,269,613 4,138,486 4.6 

Unused loan commitments ..................................... ................. 1,760,978 1,669,314 1,477,315 19.2 

Including RTC conservatorsh/ps and IBA's: 

Estimated BIF-insured deposits ............... ........................... .. 1,887,901 1,887,911 1,886,293 0.1 

Domestic deposits (reflects Oakar adjustments) .............. . 2,427,207 2,438,037 2,446,068 -0.8 

BIF balance (unaudited figures) ..................................... .. . 19,359 17,490 10,515 84.1 

BIF coverage ratio(%)**** ..... ....... ........ ............................ . 1.03 0.93 0.56 

Estimated SAIF-insured deposits ........................................ . 687,321 690,894 709,732 -3.2 

Domestic deposits (reflects Oakar adjustments) .............. . 716,464 718,971 736,356 -2.7 

SAIF balance (unaudited figures) .................................. ... . 2,011 1,662 861 133.6 

SAIF coverage ratio(%)**** .............................................. . 0.29 0.24 0.12 

Estimated FDIC-insured deposits, BIF and SAIF ................ . 2,575,222 2,578,805 2,596,025 -0.8 

Preliminary Preliminary 

First Three First Three 3rd Quarter 3rd Quarter %Change 

INCOME DATA Qtrs 1994 Qtrs 1993 %Change 1994 1993 93 :3-94:3 

Total interest income ..................................... ....... . $237,055 $234,659 1.0 $81,607 $79,008 3.3 

Total interest expense ....... ............................. ...... . 105,034 106,025 -0.9 36,319 35,670 1.8 

Net interest income ............................................ . 132,021 128,634 2.6 45,288 43,338 4.5 

Provision for loan losses ...................................... . 9,949 16,206 -38.6 3,038 5,003 -39.3 

Total noninterest income ...................................... . 61,205 61,106 0.2 21,462 21,125 1.6 

Total noninterest expense .................................... . 123,548 122,821 0.6 42,056 41,258 1.9 

Securities gains (losses) ........ ................ .............. . 394 3,051 -87.1 (324) 1,077 NIM 

Applicable income taxes.... ................. ................ .. . 20,758 17,807 16.6 7,358 6,368 15.6 

Extraordinary gains, net..... ......................... ......... . (194) 1,970 NIM 6 (230) NIM 

Net income ......................................................... . 39,171 37,926 3.3 13,979 12,682 10.2 

*Excludes institutions in ATC conservatorship, one sett-liquidating savings institution, insured branches of foreign banks (IBA's), unless indicated otherwise. 

***New accounting rules and/or reporting detail became effective March 31, 1994. See Notes to Users, pp. 18-19. N/M-Not meaningful 

****Coverage ratios reflect the insurance fund balance as a percentage of estimated insured deposits. 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 14 Third Quarter, 1994 
TABLE 1-D. Selected Indicators, BIF-Member Depository Institutions* 

(dollar figures in millions) 1----19_9_4_*•___ 1_99_3_*_* _ __1_9_9_3_ 

Number of institutions reporting .. .. .. ...... ........................ .. 10,905 11,422 11,291 

Total assets ....................................... .. .. ......................... . $4,165,321 $3,877,578 $3,949,683 

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

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

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

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

Assets of failed/assisted institutions (in billions) ............. . 

**As of September 30. 

2,984,692 2,899,411 2,951,946 

315 548 472 

$48 $312 $269 

12 35 41 

$1 .20 $2.99 $3.56 

_ __19_9_2____1_99_1_ 

11 ,813 12,305 

$3,711,624 $3,660,455 

2,873,178 2,881,769 

856 1,089 

$464 $610 

122 127 

$44 $63 

_ _ _1_9_90_ 

12,791 

$3,646,838 

2,861,441 

1,046 

$409 

169 

$15 

TABLE 11-D. Selected Aggregate Condition and Income Data, BIF-Member Depository Institutions* 

(dollar figures in millions) 

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

Commercial banks................................. ............................... . 

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

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

CONDITION DAT A 

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

Loans secured by real estate, total. ......................... ...... ....... . 

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

Multifamily residential property .................................. ......... . 

Commercial real estate................. ............................ .......... . 

Construction, development and land............. ..................... . 

Commercial & industrial loans .............................................. . 

Reserve for losses ....... .... .................................... ............... . 

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

Estimated insured deposits ................................................... 

BIF-insured deposits (estimated) ................................ ........ . 

SAIF-insured deposits (estimated) ........... .. .. ...................... . 

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

Other real estate owned....................................................... . 

Equity capital .................. ...................................................... . 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions: 

Well capitalized ..................................... .. .............................. . 

Adequately capitalized .................... .. .. ............ ...................... . 

Undercapitalized ..................................... .............................. . 

Significantly undercapitalized ............................................... . 

Critically undercapitalized .................................... ................. . 

Total assets: 

Well capitalized .... ................................................................. . 

Adequately capitalized ................... ........................................ 

Undercapitalized .................... ... ... .. .. ............. ........................ . 

Significantly undercapitalized .. .................. .......................... . 

Critically undercapitalized ........................................ ... .. ........ . 

Preliminary 

First Three 

INCOME DATA Qtrs 1994 

Net interest income....................... ... .. ................ .. . $115,073 

Provision for loan losses.. .................................. .. . 8,532 

Net income ........................................................... . 35,700 

Net charge-offs .............................. .. ..................... . 8,735 

Number of institutions reporting net losses .......... . 406 

*Excludes insured branches of foreign banks. 

Preliminary 

3rd Quarter 2nd Quarter 

1994 1994 

10,905 11,039 

10,517 10,643 

388 396 

1,543,516 1,556,622 

$4,165,321 $4,135,242 

1,109,129 1,084,334 

649,077 630,706 

49,836 49,558 

296,473 293,479 

66,107 64,601 

579,320 568,841 

54,886 55,045 

2,984,692 2,959,211 

2,043,725 2,033,033 

1,877,074 1,879,443 

166,651 153,590 

36,980 39,941 

13,560 15,045 

332,354 325,284 

10,721 10,831 

149 164 

23 19 

11 15 

1 10 

$4,005,204 $4,010,584 

154,922 119,045 

3,899 2,558 

1,292 1,816 

3 1,239 

3rd Quarter % Change 

1993 93:3-94:3 

11,422 -4.5 

11,013 -4.5 

409 -5.1 

1,543,636 -0.0 

$3,877,578 7.4 

1,052,810 5.4 

606,843 6.9 

47,241 5.5 

284,734 4.1 

71,091 -7.0 

533,746 8.5 

56,665 -3.1 

2,899,411 2.9 

2,018,347 1.3 

1,880,023 -0.2 

138,324 20.5 

55,292 -33.1 

22,776 -40.5.. 308,237 

11,144 -3.8 

206 -27.7 

38 -39.5 

29 -62.1 

5 -80.0 

$3,695,826 8.4 

169,120 -8.4 

5,805 -32.9 

6,160 -79.0 

666 -99.5 

Preliminary 

First Three 3rd Quarter 3rd Quarter %Change 

Qtrs 1993 %Change 1994 1993 93:3-94:3 

$110,886 3.8 $39,608 $37,452 5.8 

14,069 -39.4 2,689 4,176 -35.6 

33,527 6.5 12,441 11 ,737 6.0 

13,959 -37.4 2,686 4,144 -35.2 

554 -26.7 450 553 -18.6 

**New accounting rules and/or reporting detail became effective March 31, 1994. See Notes to Users, pp. 18-19. 

FDIC Quarterly Banking Profile 

Third Quarter 1994 15 BIF-Member Depository Institutions 
TABLE 1-E. Selected Indicators, SAIF-Member Depository Institutions* 

(dollar figures in millions) 

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

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

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

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

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

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

Assets of failed/assisted institutions (in billions) ............. . 

..As of September 30. 

1----19_9_4_••_ _ _ 1_99_3_•_• _ _ _ 1_9_9_3_ _ __1992_ _ _ _ 1991 1990 

1,869 1,956 1,929 2,039 2,177 2,367 

$764,130 $759,745 $757,354 $824,266 $883,187 $1,001,804 

556,827 577,642 576,493 653,865 712,533 775,826 

62 117 100 207 337 446 

$47 $72 $65 $128 $209 $231 

1 9 9 59 144 213 

$0.09 $6.13 $6.13 $44 $79 $130 

TABLE 11-E. Selected Aggregate Condition and Income Data, SAIF-Member Depository Institutions* 

(dollar figures in millions) 

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

Commercial banks ............................................................... .. 

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

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

CONDITION DATA 

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

Loans secured by real estate, total ........................................ 

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

Multifamily residential property ........................................... . 

Commercial real estate .................................................. ..... . 

Construction, development and land .................................. . 

Commercial & industrial loans ............................................... 

Reserve for losses ............. ................................................. . 

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

Estimated insured deposits .................................................. . 

BIF-insured deposits (estimated) ........................................ . 

SAIF-insured deposits (estimated) ................................ .. .. .. 

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

Other real estate owned.. ..................................... ...... ......... .. 

Equity capital. ....................................................................... . 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions: 

Well capitalized ..................................................................... . 

Adequately capitalized ......................................................... . 

Undercapitalized .................................................................... 

Significantly undercapitalized ...... ..................................... .... . 

Critically undercapitalized ..................................................... . 

Total assets: 

Well capitalized .......................................................... ....... .... . 

Adequately capitalized ........................................................... 

Undercapitalized .................. .................................................. 

Significantly undercapitalized .............................................. . 

Critically undercapitalized .................................................... .. 

Preliminary 

3rd Quarter 2nd Quarter 

1994 1994 

1,869 1,894 

75 73 

1,794 1,821 

210,818 218,720 

$764,130 $756,389 

456,245 448,098 

357,689 349,587 

44,453 44,718 

35,467 35,810 

18,547 17,900 

5,628 5,376 

5,611 5,918 

556,827 563,667 

527,686 535,661 

8,643 6,134 

519,043 529,527 

7,157 7,848 

3,427 4,006 

60,375 59,669 

1,774 1,801 

83 82 

6 5 

5 5 

1 1 

$679,921 $669,705 

79,422 78,451 

1,408 1,649 

3,335 2,526 

44 4,058 

3rd Quarter % Change 

1993 93:3-94:3 

1,956 -4.4 

68 10.3 

1,888 -5.0 

219,907 -4.1 

$759,745 0.6 

453,576 0.6 

352,180 0.9 

46,309 -4.0 

38,515 -7.9 

16,516 12.3 

5,679 -0.9 

6,103 -8.1 

577,642 -3.6 

551,529 -4.3 

3,926 120.1 

547,603 -5.2 

9,611 -25.5 

6,902 -50.4 

58,372 

1,815 -2.3 

126 -34.1 

10 -40.0 

4 25.0 

0.0 

$650,836 4.5 

106,483 -25.4 

1,874 -24.9 

539 518.4 

13 237.8 

Preliminary Preliminary 

First Three First Three 3rd Quarter 3rd Quarter 3⁄4Change 

INCOME DATA Qtrs 1994 Qtrs 1993 3⁄4Change 1994 1993 93:3-94:3 

Net interest income............................................... $16,948 $17,748 -4.5 $5,680 $5,886 -3.5 

Provision for loan losses....................................... 1,416 2,137 -33. 7 349 828 -57.8 

Net income............................................................ 3,472 4,399 -21.1 1,538 945 62.8 

Net charge-offs........ .............................................. 1,812 1,743 4.0 556 701 -20.7 

Number of institutions reporting net losses........... 129 99 30.3 127 112 13.4 

*Excludes institutions in Resolution Trust Corporation conservatorship and one self-liquidating institution. 

•• New accounting rules and/or reporting detail became effective March 31, 1994. See Notes to Users, pp. 18-19. 

FDIC Quarterly Banking Profile 

SAIF-Member Depository Institutions 16 Third Quarter 1994 
Number of FDIC- Insured 11Problem11 

Institutions 

1990 - 1994 

Number of Institutions 

2000 - Commercial Banks 

lllllllllllllll Savings Institutions 

1500 

1000 

500 

0 

12/90 12/91 03/92 06/92 09/92 12/92 03/93 06/93 09/93 12/93 03/94 06/94 09/94 

Savings Institutions 480 410 381 349 318 276 255 209 169 146 118 95 84 

Commercial Banks 1,012 1,016 981 956 909 787 671 580 496 426 383 338 293 

Assets of FDIC- Insured 11Problem11 Institutions 

1990 - 1994 

$ Amounts in Billions 

1,000 - Commercial Banks 

$819 Savings Institutions 

800 $740 $711 

600 

400 

200 

0 

12/90 12/91 03/92 06/92 09/92 12/92 03/93 06/93 09/93 12/93 03/94 06/94 09/94 

Savings Institutions 298 291 274 245 223 184 167 128 103 92 89 71 59 

Commercial Banks 342 528 535 495 488 408 377 326 281 242 53 42 36 

FDIC Quarterly Banking Profile 

Third Quarter, 1994 17 All FDIC-Insured Institutions 
NOTES TO USERS 

This publication contains financial data and other information for depository 

institutions insured by the Federal Deposit Insurance Corporation (FDIC). 

These notes are an integral part of this publication and provide information 

regarding the comparability of source data and reporting differences over 

time. The information presented in the FDIC Quarterly Banking Profile 

is divided into the following groups of institutions: 

FDIC-Insured Commercial banks (Tables I-A through V-A.) 

This section covers commercial banks insured by the FDIC either 

through the Bank Insurance Fund (BIF) or through the Savings 

Association Insurance Fund (SAIF). These institutions are regulated by and submit financial reports to one of the three federal 

commercial bank regulators (the Board of Governors of the Federal 

Reserve System, the FDIC or the Office of the Comptroller of the 

Currency). 

FDIC-Insured Savings Institutions (Tables 1-B through V-B.) 

This section covers savings institutions insured by either BIF or 

SAIF that operate under state or federal banking codes applicable 

to thrift institutions, except for one self-liquidating institution primarily funded by the FSLIC Resolution Fund (FRF). Savings institutions that have been placed in Resolution Trust Corporation 

conservatorship are also excluded from these tables while in 

conservatorship. The institutions covered in this section are regulated by and submit financial reports to one of two Federal regulators -the FDIC or the Office of Thrift Supervision (OTS). 

FDIC-Insured Institutions by Insurance Fund 

(Tables 1-C through 11-E.) 

Summary balance-sheet and earnings data are provided for commercial banks and savings institutions according to insurance fund 

membership. BIF-member institutions may acquire SAIF-insured 

deposits, resulting in institutions with some deposits covered by 

both insurance funds. Also, SAIF members may acquire BIF-insured deposits. The insurance fund membership does not necessarily reflect which fund insures the largest percentage of an 

institution's deposits. Therefore, the BIF-member and the 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 . Efforts are made to obtain financial reports for all active 

institutions. However, in some cases, final financial reports are not 

available for institutions that are 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) Ca// 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 Ca// Reports. The detailed schedules 

of the Thrift Financial Report reflect the consolidation of the parent 

thrift with all finance subsidiaries. All other subsidiaries are reported as investments on an equity basis or a cost basis. Some 

accounting differences exist, such as asset sales with recourse, 

for which the data necessary to reconcile these differences are not 

reported. 

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. No adjustments to prior periods are made 

for institutions that move their headquarters across state lines 

unless otherwise indicated. 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. Tables 

Ill and IV do not provide growth rates for the "Asset Size Distribution" since many institutions migrate between size groups. 

RECENT ACCOUNTING CHANGES 

FASB Statement 115, "Accounting for Certain Investments in Debt 

and Equity Securities." Requires that securities that are not held in 

trading accounts be measured at either amortized cost or fair 

(market) value, depending on their classification category. For 

additional details, see "Notes to Users," First Quarter, 1994, Quarterly Banking Profile. 

FASB Interpretation 39, "Offsetting of Amounts Related to Certain 

Contracts." Covers fair value amounts recognized as assets and 

liabilities on the balance sheet for off-balance-sheet derivative 

contracts under which the amounts to be received or paid or items 

to be exchanged depend on future events or other factors (e.g., 

future and forward contracts, interest-rate swaps, exchange-rate 

swaps, and other conditional and exchange contracts). For additional details, see "Notes to Users," First Quarter, 1994, Quarterly 

Banking Profile. 

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, and 

other assets. Beginning 3/31 /94, FASB Interpretation 39 limited the 

netting of related trading assets and liabilities, which had the effect 

of increasing the amount of trading account assets reported. 

All other liabilities - bank's liability on acceptances, limited-life 

preferred stock, and other liabilities. Effective 3/31/94, includes 

revaluation losses on assets held in trading accounts. 

BIF-insured deposits (estimated) - the amount of deposits in 

accounts of less than $100,000 insured by the BIF. For SAIF-member "Oakar" institutions, it represents the adjusted attributable 

amount acquired from BIF members. 

Capital category distribution - each institution's capital category is calculated or estimated from its financial report and does 

not reflect supervisory upgrades or downgrades: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

Capital• Capital• Leverage Equity 

Well-capitalized 2'.10% and 2'.6% and 2'.5% 

Adequately capitalized 2'.8% and 2'.4% and 2'.4% 

Undercapitalized <8% or <4% or <4% 

Significantly 

undercapitalized <6% or <3% or <3% 

Critically undercapit~lized - :52% 

•As a percentage of risk-weighted assets. 

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 mortgage 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. 

Direct and indirect investments in real estate-excludes loans 

secured by real estate and property acquired through foreclosure. 

Earning assets - all loans and other investments that earn 

interest or dividend income. 

Estimated insured deposits - estimated amount of insured 

deposits (account balances less than $100,000). The sum of all 

deposit balances in accounts of less than $100,000 plus the 

number of accounts with balances greater than $100,000 multiplied by $100,000. 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 18 Third Quarter, 1994 
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 - or the RTC - 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-borrowings from the Federal Home Loan Bank 

(FHLB) reported by institutions that file a Thrift Financial Report. 

Institutions that file a Call Report do not report borrowings ("advances") from the FHLB separately. 

Goodwill and other intangibles - intangible assets include 

mortgage 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. Effective 3/31 /94, the full implementation of FASB 115 

meant that a portion of banks' mortgage-backed securities portfolio 

is now reported based upon fair (market) values; previously, all 

mortgage-backed securities not held in trading accounts were 

reported at either amortized cost or lower of cost or market. 

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

from balance sheet because of uncollectibility), less amounts 

recovered on loans and leases previously charged off. 

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

depositors and other creditors, expressed as a percentage of 

average earning assets. No adjustments are made for interest 

income that is tax exempt. 

Net operating income-income excluding discretionary transactions such as gains (or losses) on the sale of investment securities 

and extraordinary items. Income taxes subtracted from operating 

income have been adjusted to exclude the portion applicable to 

securities gains (or losses). 

Noncurrent assets - the sum of loans, leases, debt securities 

and other assets that are 90 days or more past due, or in nonaccrual status. Noncurrent debt securities and other assets were not 

included prior to March 1991 . 

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. 

Off-balance-sheet derivatives - represents the sum of the following: interest-rate contracts, defined as: the notional value of 

interest-rate swaps, futures and forward contracts and option contracts; foreign-exchange-rate contracts and commodity 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 underlying at a specified price or yield. These contracts exist 

for a variety of underlyings, including the 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 underlying 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 underlying 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 of the underlying (notional principal) by 

specified reference rates or prices. Except for currency swaps, the 

notional principal is used to calculate each payment but is not exchanged. 

Other borrowed funds-federal funds purchased, securities sold 

with agreements to repurchase, demand notes issued to the U.S. 

Treasury, other borrowed money, mortgage indebtedness and 

obligations under capitalized leases. Effective 3/31/94, includes 

newly-reported item "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 SAIFmember institutions whose primary federal regulator is the OTS, 

the OTS composite rating is used. 

Restructured loans and leases - loan and lease financing 

receivables with terms restructured from the original contract. 

Excludes restructured loans and leases that are not in compliance 

with the modified terms. 

Return on assets - net income (including gains or losses on 

securities and extraordinary items) as a percentage of average 

total assets. The basic yardstick of bank profitability. 

Return on equity - net income (including gains or losses on 

securities and extraordinary items) as a percentage of average 

total equity capital. 

Risk-weighted assets - assets adjusted for risk-based capital 

definitions which include on-balance-sheet as well as off-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 amount of deposits in 

accounts of less than $100,000 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. Effective 

3/31/94, the full implementation of FASB 115 meant that a portion 

of banks' securities portfolios is now reported based upon fair 

(market) values; previously, all securities not in held trading accounts 

were reported at either amortized cost or lower of cost or market. 

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. 

Unused loan commitments - includes credit card lines, home 

equity lines, commitments to make loans for construction, loans 

secured by commercial real estate, and unused commitments to 

originate or purchase loans. 

Volatile liabilities-the sum of large-denomination time deposits, 

foreign-office deposits, federal funds purchased, securities sold 

under agreements to repurchase, and other borrowings. Beginning 

3/31/94, new reporting detail permits the exclusion of other borrowed money with original maturity of more than one year; previously, all other borrowed money was included. Also beginning 

3/31/94, the newly-reported item ''Trading liabilities," less revaluation losses on assets held in trading accounts, is included. 

Yield on earning assets-total interest, dividend and fee income 

earned on loans and investments as a percentage of average 

earning assets. 

FDIC Quarterly Banking Profile 

Third Quarter, 1994 19 All FDIC-Insured Institutions