Fourth Quarter, 1993 

FDIC 

Division of Research 

&Statistics 

Don Inscoe 

Associate Director, 

Statistics Branch 

(202) 898-3940 

nm Crltchfleld 

(202) 898-8557 

Jim McFadyen 

(202) 898-7027 

Ross Waldrop 

(202) 898-3951 

The FDIC 

uarte r ly:_____A_n_dr_ew_c_.H_o_ve_,J_r.,_Ch_a_irm_a_nanking R~ofile 

COMMERCIAL BANKING PERFORMANCE - FOURTH QUARTER, 1993 

• Fourth-Quarter Profits of $11.1 Billion Cap Record Earnings Year 

• Net Income of $43.4 Billion in 1993 Eclipses Previous Record 

• Rapidly Improving Asset Quality is Key To Earnings Gains 

• Net Interest Margins Narrow Slightly, But Remain Strong 

• Industry Capitalization Reaches 30-Year High 

Insured commercial banks reported fourth-quarter net 

income of $11 .1 billion, more than 40 percent above the 

$7.8 billion that banks earned in the fourth quarter of 

1992. Earnings, although $331 million below the record 

level of the third quarter, were still the second-highest 

quarterly total ever reported. The average return on 

assets in the final quarter of 1993 was 1.21 percent, the 

fourth consecutive quarter that industry ROA has 

exceeded one percent. The impressive fourth-quarter 

results capped a year in which commercial bank 

earnings soared to unprecedented levels. Full-year 

earnings of $43.4 billion were more than one-third 

higher than the previous record of $32.0 billion, set in 

:1992. The average ROA for 1993 was 1.21 percent, 

marking the first time since the creation of the FDIC that 

full-year ROA has exceeded one percent. All four of the 

highest quarterly ROA averages ever reported by the 

industry were in 1993. Banks in all regions and all size 

groups reported average ROAs exceeding one percent. 

Over 95 percent of all commercial banks reported 

positive earnings for 1993, the highest proportion since 

1980. Two out of every three banks reported higher 

earnings than in 1992. 

Return on Assets (ROA) and Equity (ROE) 

of Insured Commercial Banks, 1934 - 1993 

ROA % ROE% 

1.4 16 

Return on Assets 

1.2 Return on Equity 14 

12 

1.0 

j 10 

0.8 

8 

0.6 

6 

04 4 

0.2 2 

0.0 0 1 • 1111 • 11 11 • 1111 , 1111 0 1 111 • 1111 • 1111 • 1111 • 1 1 1 1 • 1 111 • 1111 • 11 1 

~ ~ ~ ~ ·~ ~ ·~ ~ ~ ~ -~ 

In 1934 ROA was -0.77 and ROE was -5.80 

The largest contribution to banks' increased earnings 

came from lower loan-loss provisioning, reflecting 

improved asset quality. Provisions in the fourth quarter 

totaled $3.8 billion, more than 40 percent less than the 

$6.4 billion set aside in the fourth quarter of 1992. For 

all of 1993, banks set aside $16.6 billion, a decline of 

$9.5 billion from 1992, and the lowest annual total 

since 1984. Higher noninterest income was another 

source of earnings improvement. Noninterest income 

in the fourth quarter was more than $3.3 billion higher 

than a year earlier; for the full year, it was up by $9.3 

billion. Noninterest income contributed 23.4 percent of 

commercial banks' total operating revenue in 1993, up 

from 20.5 percent in 1992 and 17.1 percent in 1991 . 

Quarterly Net Income of FDIC-Insured 

Commercial Banks, 1989 - 1993 

BIiiions of Dollars 

15 D Nat Operating Income 

- Securities and Other Gains. Net 

10 

5 

0 

- 5 12341234123412341234 

1989 1990 1991 1992 1993 

A third source of earnings improvement in 1993 was 

increased net interest income. Fourth-quarter net 

interest income of $36.0 billion was up $947 million 

from a year earlier, while full-year net interest income 

of $139.4 billion was $6.0 billion higher than in 1992. 

Unlike 1992, when widening net interest margins were 

the main source of net interest income growth, the 

improvement in 1993 stemmed from more rapid growth 

in interest-earning assets, as margins actually 

narrowed slightly throughout the year. Margin erosion 

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Office of Corporate Communications, 550 17th Street, NW, Washington, DC 20429; telephone (202) 898-6985. 

For assistance contact: Section508@fdic.gov
was limited by shifts in asset and liability composition, 

with strong loan growth helping support average asset 

yields, and substitution of noninterest-bearing deposits 

and nondeposit liabilities for interest-bearing time 

deposits helping to reduce average funding costs. 

The improvement in asset quality that began two and 

one-half years ago remained strong through the end of 

the year. Both noncurrent loans and other real estate 

owned registered their largest quarterly declines ever in 

the fourth quarter, falling by a combined $11.1 billion. 

These troubled assets, which peaked at 3.19 percent of 

total assets at the end of the second quarter of 1991, 

now represent 1.61 percent of assets. In dollar terms, 

troubled assets are at their lowest level since the end of 

1986. All major loan categories showed significant 

improvement during 1993. The fact that larger net 

reductions in noncurrent loans were achieved with 

lower charge-offs indicates fundamental improvement in 

the quality of banks' loan portfolios. 

Commercial bank assets grew by $200 billion in 1993, 

the largest increase since 1986, when they increased 

by $211 billion. Much of the growth occurred in 

investment securities (up $63.7 billion), real estate 

loans (up $54.3 billion) and consumer loans (up $33.7 

billion). Strong growth in residential mortgage lending 

produced a $52.2-billion increase in banks' holdings of 

mortgage loans and a $30.2-billion increase in their 

holdings of mortgage-backed securities. In the last 

three quarters of 1993, loan growth has exceeded 

growth in investment securities; in all but one of the 

previous nine quarters, loans had declined as securities 

grew. All major loan categories increased in 1993 

except real estate construction and development loans. 

Commercial and industrial loans increased modestly 

during 1993, following three years of shrinkage. 

Equity capital increased by $8.2 billion in the fourth 

quarter, rising above 8 percent of total assets for the 

first time since 1963. Approximately $3 billion of the 

fourth-quarter increase resulted from a change in 

Generally Accepted Accounting Principles (GAAP). A 

new accounting rule requires depository institutions to 

report certain securities holdings at current market 

values, with any unrealized gains or losses, net of 

taxes, included in capital. More than 1,400 banks, 

representing over one-third of industry assets, adopted 

the new rule in their year-end financial reports. The rest 

of the industry will be making the change in 1994, so 

that further adjustments to capital can be expected. 

Another result of the change is that future earnings 

gains attributable to securities sales are likely to be 

significantly lower. Retained earnings contributed $3.0 

billion to capital in the fourth quarter, as banks paid 

$8.1 billion in dividends. After falling for the previous 

three years, the average dividend payout rate rose to 

50.7 percent for 1993, from 44.2 percent in 1992. For 

all of 1993, equity grew by $33.4 billion, the largest 

annual increase ever. 

Net charge-offs exceeded loan-loss provisions in each 

of the last three quarters of 1993, with the result that 

reserves fell by $1.8 billion in 1993. However, 

noncurrent loans declined by $19.5 billion during the 

same period, so that at year-end, banks held $1.23 in 

reserves for every dollar of noncurrent loans. This is 

the highest "coverage level" seen since banks began 

reporting noncurrent loans in 1982. 

Forty-two insured commercial banks failed in 1993, the 

fewest since 1982, when 34 banks failed. Only 59 new 

charters were issued in 1993, the fewest since 1953. 

Merger activity remained the driving force behind the 

consolidation of the banking industry; there were 482 

mergers of commercial banks during 1993, of which 

131 occurred in the fourth quarter. There were 10,957 

commercial banks reporting at the end of the year, the 

first time that the number of FDIC-insured commercial 

banks has fallen below 11,000. The FDIC's "Problem 

List" continued to shrink throughout 1993, with a net 

decline of 361 banks and $166 billion in assets, to 426 

banks with assets of $242 billion at year-end. 

Commerclal and lndustrlal Loan Grow1h Rates 

December 31, 1992 - December 31, 1993 

Northeast 

•O 

ll'lh Puerto Rico 

-15.0 

Hawaii (;) 

- 6.0 

Southeast 

D Less than 0% 

D Between O and 5% 

- Greater than 5% 

FDIC-Insured Commercial Banks 2 FDIC Quarterly Banking Profile 

Fourth Quarter 1993 . 
TABLE 1-A. Selected Indicators, FDIC-Insured Commercial Banks 

1993 1992 1991 1990 1989 1988 1987 

Return on assets (%) ......................................... ...... 1.21 0.93 0.53 0.48 0.49 0.82 0.10 

Return on equity(%).................................. ... .. ........ 15.48 12.99 7.94 7.45 7.71 13.19 1.55 

Core capital (leverage) ratio(%) ....... ... ................... 7.75 7.20 6.49 6.17 6.09 6.15 5.89 

Noncurrent assets plus 

other real estate owned to assets (%) ................... 1.61 2.54 3.02 2.94 2.30 2.14 2.46 

Net charge-offs to loans(%).......................... .......... 0.84 1.27 1.59 1.43 1.16 1.00 0.93 

Asset growth rate (%)... ........................................... 5.72 2.18 1.21 2.73 5.38 4.36 2.01 

Net operating income growth (%) ............................ 36.61 92.47 -0.62 2.53 -38.70 NIM -89.65 

Number of institutions reporting .............................. 10,957 11,462 11,921 12,343 12,709 13,123 13,703 

Percentage of unprofitable institutions .............. .... .. 4.52 6.83 11.58 13.44 12.50 14.68 18.70 

Number of problem institutions ................................ 426 787 1,016 1,012 1,092 1,394 1,559 

Assets of problem institutions (in billions) ............... $242 $408 $528 $342 $188 $305 $329 

Number of failed/assisted instijutions ...................... 42 100 108 159 206 221 201 

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

(dollar figures In millions) Preliminary 

4th Qtr 3rd Qtr 4th Qtr %Change 

1993 1993 1992 92:4-93:4 

Number of institutions reporting ......... .... ..... ...... .. ....... ............. . 10,957 11,081 11,462 -4.4 

Total employees (full-time equivalent) ............ ... ................... .. . 1,493,348 1,476,965 1,477,882 1.1 

CONDITION DATA 

Total assets ........... ....... ... .. ... ................................................ .. . $3,705,947 $3,631,329 $3,505,522 5.7 

Loans secured by real estate .......................................... .. 922,643 901,757 868,343 6.3 

Commercial & industrial loans .......................................... . 538,952 529,655 536,169 0.5 

Loans to individuals.. .. .... .......... ........................................ . 418,987 403,139 385,305 8.7 

Farm loans ................................. ........ .............. .... ...... ....... . 37,135 37,432 34,994 6.1 

Other loans & leases .............. ... .. ..................................... . 238,842 232,109 215,829 10.7 

Less: Unearned income ............ ..... ........................ ........... . 6,744 7,165 8,782 -23.2 

Total loans & leases.... .... ........... .. ........ ...... ............. ....... ..... 2,149,815 2,096,928 2,031,858 5.8 

Less: Reserve for losses ......... .............. .. ........................... . 52,631 53,890 54,478 -3.4 

Net loans & leases ........................................ ...... ..... ... ...... .... . 2,097,184 2,043,037 1,977,381 6.1 

Investment securities ........ ......... ......... ...................... ............ . 836,562 820,955 772,875 8.2 

Other real estate owned .... ...................... ............................. . 16,283 19,901 25,823 -37.0 

Goodwill and other intangibles ....... ... ... .. ....... .. ......... ............ . 18,023 16,833 15,550 15.9 

All other assets .......... ...... ...... .... ..................... ...................... . 737,896 730,603 713,893 3.4 

Total liabiltties and capital. ........................................... .. ......... . 3,705,947 3,631,329 3,505,522 5.7 

Noninterest-bearing deposits .. .. .................. ........... .. ... .......... . 571,831 538,055 540,654 5.8 

Interest-bearing deposits ... .. ....... ... .......... ................ ............. . 2,182,098 2,158,270 2,157,939 1.1 

Other borrowed funds .... ... .. ...... .................................... ... .. ... . 497,771 484,203 406,608 22.4 

Subordinated debt.. .................... ..... ..................................... . 37,372 37,001 33,731 10.8 

All other liabilities .... ... .. ........... .............................................. . 120,054 125,181 103,172 16.4 

Equity capital ......................................................... ..... .......... . 296,822 288,619 263,419 12.7 

Loans and leases 30-89 days past due .................................. . 28,669 28,728 34,513 -16.9 

Noncurrent loans and leases .................................................. . 42,741 50,192 62,209 -31.3 

Restructured loans and leases .................. .. ........... .. .............. . 10,171 11,374 11,915 -14.6 

Direct and indirect investments in real estate ........ ................. . 543 397 553 -1.8 

1-4 Family residential mortgages ...... .. ........................... ........ . 515,689 495,834 463,447 11 .1 

Mortgage-backed securities.. ....... ..... ... .. ........................ ........ . 336,974 338,486 306,772 9.9 

Earning assets ...... ..... .. .................. ........................ .... ............. . 3,290,590 3,206,507 3,087,736 6.6 

Long-term assets (5+ years) ............... ................................... . 527,420 519,726 506,222 4.2 

Volatile liabilities .................................. ............. ......... ......... .... . 1,031,122 1,013,639 918,102 12.3 

Foreign office deposits......... ............. ....... .. ................ .. .......... . 329,997 322,654 286,799 15.1 

Unused loan commitments ..................................................... . 1,453,104 1,381,247 1,272,071 14.2 

Off-balance-sheet derivatives ................... .............. . 11 ,873,326 11,985,719 8,764,897 35.5 

Preliminary Preliminary 

Full Year Full Year 4thQtr 4th Qtr %Change 

INCOME DATA 1993 1992 %Change 1993 1992 92:4-93:4 

Total interest income .......................................... .. . $245,158 $255,228 -4.0 $63,245 $62,636 1.0 

Total interest expense.. ..... ........................... .. ...... . 105,780 121,812 -13.2 27,280 27,616 -1.2 

Net interest income ................... .. ............... ........ . 139,378 133,416 4.5 35,966 35,019 2.7 

Provision for loan losses ...................................... . 16,589 26,045 -36.3 3,805 6,412 -40.7 

Total noninterest income ...................................... . 74,962 65,614 14.3 20,099 16,751 20.0 

Total noninterest expense .............. .......... ... ... ...... . 139,585 130,917 6.6 36,698 34,777 5.5 

Securities gains (losses).. ........... ...... ................... . 3,064 4,007 -23.5 393 766 -48.8 

Applicable income taxes ... .................................... . 19,892 14,486 37.3 5,068 3,680 37.7 

EX1raordinary gains, net ...................................... . 2,090 410 410.0 233 84 177.2 

Net income .................................. .. ...... ... ....... .... .. 43,430 31 ,998 35.7 11,120 7,752 43.5 

Net charge-offs .......................... ............. .. ....... .. ... . 17,463 25,645 -31.9 4,864 7,141 -31 .9 

Cash dividends ...... .......................................... ..... . 22,015 14,129 55.8 8,087 5,587 44.8 

Net operating income ........ ................................ .. 39,129 28,643 36.6 10,564 7,099 48 .8 

NIM - Not meaningful 

FDIC Quarterly Banking Profile 3 FDIC-Insured Commercial Banks 

Fourth Quarter 1993 
TABLE Ill-A. Full Year 1993, FDIC-Insured Commercial Banks 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

FULL YEAR Preliminary 

(The way it is . . . ) 

All 

Institutions 

than $100 

Million 

to 

$1 Billion 

to 

$10 Billion 

than $10 

Billion 

Northeast 

Southeast Central I Midwest 

Southwest West 

Number of institutions reporting ............ .... 10,957 7,788 2,787 327 55 878 1,818 2,411 2,706 1,937 1,207 

Total assets (in billions) ......................... .... $3,705.9 $335.0 $676.9 $1 ,063.6 $1 ,630.5 $1 ,399.8 $594 .5 $612 .1 $251 .3 $293.9 $554 .3 

Total deposits (in billions) ................. .. ....... 2,753 .9 294.5 576.2 782.9 1,100.3 940.7 456.1 468.3 200.0 246.1 442.5 

Net income (in millions) ......... ..... ............ ... 43,430 3,752 7,719 13,651 18,308 15,453 6,779 7,618 3,536 3,962 6,081 

% of unprofitable institutions ................... .. 4.5 4.8 3.8 5.5 0.0 8.9 4.8 2.8 1.7 2.4 13.9 

% of institutions with earnings gains ...... ... 67 .0 63.5 74 .9 80.4 85.5 78.5 74 .0 69 .5 58.3 63 .7 68.4 

Performance Ratios (3⁄4) 

Yield on earning assets ........................... .. 7.75 7.67 7.59 7.54 7 .97 8.29 7.37 7.40 7.54 6.93 7.73 

Cost of funding earning assets .......... .... .... 3.34 2.98 2.86 2.74 4.04 4.31 2.87 2.96 2.97 2.57 2.46 

Net interest margin ......................... ........ ... 4.40 4.69 4.73 4.80 3.93 3.98 4.49 4.44 4.57 4.36 5.27 

Noninterest income to earning assets ...... . 2.37 1.12 1.45 2.59 2.90 2.94 1.72 1.79 2.55 1.73 2.54 

Noninterest expense to earning assets .... . 4.41 3.91 4.05 4.62 4.54 4.60 4.01 3.89 4.36 4.20 5.11 

Net operating income to assets ................. 1.09 1.06 1.09 1.26 0.99 0.96 1.15 1.21 1.40 1.14 1.09 

Return on assets .... ................................ ... 1.21 1.15 1.18 1.34 1.16 1.14 1.20 1.29 1.46 1.39 1.12 

Return on equity ........................................ 15.48 11.79 13.70 16.56 16.64 15.95 15.20 15.91 16.62 17.11 12.99 

Net charge-offs to loans and leases .......... 0.84 0.34 0.50 0.92 1.03 1.27 0.43 0.51 0.57 0.28 0.96 

Loan loss provision to net charge-offs ...... 95.00 121 .56 119.45 104.69 82.51 87.65 116.19 120.79 116.19 45.08 93.60 

Condition Ratios(3⁄4) 

Loss allowance to: 

Loans and leases ............. ....................... 2.45 1.73 1.86 2.46 2.82 2.99 1.90 1.87 1.95 1.83 2.86 

Noncurrent loans and leases .................. 123.14 131 .81 122.50 138.91 114.44 109.43 154.89 157.00 151.83 159.76 111 .21 

Noncurrent assets plus 

other real estate owned to assets ........... 1.61 1.05 1.30 1.43 1.97 2.16 1.08 0.93 0.99 0.92 2.19 

Equity capital ratio ........... .............. ...... ...... 8.01 9.77 8.75 8.15 7.25 7.49 8.03 8.12 8.69 8.26 8.74 

Core capital (leverage) ratio ................ ...... 7.75 9.76 8.65 7.89 6.87 7.37 7.86 7.99 8.56 7.84 7.89 

Net loans and leases to deposits .............. 76.15 58.95 66.24 81 .50 82 .14 80.02 77.02 76.76 72.00 56.79 79.05 

Growth Rates (year-to-year,3⁄4) 

Assets .. .... .... ............................................. 5.7 - - 7.1 8.1 5.3 3.9 4.0 2.3 

Equity capital ... .... ............... ....... .... ............ 12.7 - - - 15.7 14.1 8.8 7.0 17.5 9.5 

Net interest income ........... ........................ 4.5 - - - 3.7 5.8 4.1 7.0 7 .0 3.0 

Net income .. ..... ..... ......................... ........... 35 .7 - - - 46 .5 29.2 31.3 15.9 29 .1 42.1 

Noncurrent assets plus 

other real estate owned........................... -33.0 - - - - -35.0 -28.0 -27 .6 -12.7 -36 .5 -35.2 

Net charge-offs ......... ................................. -31 .9 - - - -27.6 -44 .9 -44.8 -21 .5 -54.7 -25.9 

Loan loss provision ................................... -36.3 - - - -34 .6 -39.7 -39.1 -21 .2 -77 .0 -34 .3 

PRIOR FULL YEARS 

(The way It was ... ) 

Number of institutions ...........•..•........ 1992 11 ,462 8,292 2,790 329 51 922 1,892 2,521 2,791 2,047 1,289 

......................................... 1990 12,343 9,254 2,715 325 49 1,070 1,958 2,717 2,954 2,179 1,465 

.........................................1988 13,123 10,292 2,468 323 40 1,080 1,945 2,927 3,109 2,557 1,505 

Total assets (in billions) .................... . 1992 $3,505.5 $346.0 $680.1 $1,034.1 $1,445.3 ~1 ,307.7 $550.0 $581.5 $242.0 $282 .6 $541 .7 

3,389.5 359.6 655.6 1,044.4 1,330.0 1,290.5 507.8 551.7 231 .2 267.6 540.8 ····························"'······· ···1990 

3,130.8 378.6 592.8 996.9 1,162.4 1,243.4 439.9 506.2 210.1 261 .6 469.6 ·········································1988 

Return on assets (%) ........... ............. 1992 0.93 1.04 1.01 1.02 0.81 0.81 0.99 1.02 1.30 1.12 0.82 

0.48 0.70 0.76 0.35 0.38 0.03 0.61 0.82 0.98 0.46 0.92 

......................................... 1988 0.82 0.64 0.74 0.77 0.96 0.98 0.97 1.06 0.87 -0.73 0.83 

·········································1990 

Net charge-offs to loans & leases {%) 

......................................... 1992 1.27 0.56 0.75 1.38 1.57 1.77 0.83 0.96 0.78 0.67 1.30 

.. ....................................... 1990 1.43 0.72 0.84 1.37 1.88 2.03 0.90 0.90 0.99 1.39 1.16 

1.00 0.89 0.78 1.05 1.10 0.83 0.63 0.73 1.31 2.43 1.26 ··· ························· .... ·····"··1988 

Noncurrent assets plus 

OREO to assets (%) ................... ...1992 2.54 1.37 1.70 2.15 3.50 3.55 1.62 1.35 1.18 1.50 3.46 

....................................... ..1990 2.94 1.71 1.99 2.82 3.85 4.37 2.04 1.58 1.43 2.72 2.53 

················· ····· ····· .... , ........ .1988 2.14 1.91 1.72 1.53 2.96 2.35 1.02 1.15 1.52 4.55 2.65

Equity capital ratio (%) ...... ..... ..... ...... 1992 7.51 9.38 8.20 7.69 6.62 6.93 7.60 7.86 8.43 7.31 8.17 

......................................... 1990 6.45 8.98 7.67 6.33 5.26 5.65 7.02 7.04 7.67 6.51 6.65 

................. ........................ 1988 6.28 8.72 7.23 6.15 5.10 5.93 6.93 6.75 7.45 5.67 5.90 

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 

Fourth Quarter 1993 
TABLE IV-A. FOURTH QUARTER 1993, FDIC-Insured Commercial Banks 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

FOURTH QUARTER Preliminary All than $100 to to than $10 North- South- Mid- South-

(The way It Is . .. ) Institutions Million $1 Billion $1 0 Billion Billion east east Central I west west West 

Number of institutions reporting .............. .. 10,957 7,788 2,787 327 55 878 1,818 2,411 2,706 1,937 1,207 

Total assets (in billions) ............................. $3,705.9 $335 .0 $676 .9 $1 ,063.6 $1 ,630.5 $1 ,399.8 $594 .5 $612 .1 $251 .3 $293.9 $554.3 

Total deposits (in billions) ................ .......... 2,753.9 294.5 576.2 782.9 1,100.3 940.7 456.1 468.3 200.0 246.1 442.5 

Net income (in mill ions) ............................. 11 ,120 791 1,803 3,773 4,753 4,209 1,621 1,852 960 924 _1 ,554 

% of unprofitable institutions ..................... 9.7 11 .3 6.1 4.9 0.0 11 .2 10.0 6.4 9.2 8.5 18.2 

% of institutions with earnings gains ......... 57 .0 54 .2 62.4 71 .3 83 .6 64.5 63.4 58.4 49.7 53.7 60.4 

Performance Ratios (annualized, %) 

Yield on earning assets ............................. 7.79 7.60 7.46 7.67 8.05 8.46 7.22 7.25 7.94 7.16 7.58 

Cost of funding earning assets .................. 3.36 2.89 2.75 2.75 4.14 4.46 2.78 2.87 3.05 2.59 2.35 

Net interest margin .................................... 4.43 4.71 4.71 4.92 3.91 4.00 4.44 4.39 4.89 4.58 5.23 

Noninterest income to earning assets...... . 2.47 1.25 1.54 2.77 2.95 3.11 1.79 1.80 2.73 1.75 2.66 

Noninterest expense to earning assets .... 4.52 4.29 4.23 4.82 4.49 4.62 4.14 3.92 4.83 4.55 5.17 

Net operating income to assets ................. 1.15 0.88 1.02 1.38 1.12 1.15 1.09 1.17 1.43 1.og 1.11 

Return on assets ....... .... ......................... ... 1.21 0.96 1.08 1.44 1.17 1.21 1.11 1.22 1.55 1.27 1.13 

Return on equity .......... ....... .. .................... . 15.20 9.72 12.32 17.65 16.38 16.46 13.82 14.99 17.72 15.22 12.91 

Net charge-offs to loans and leases ...... ... . 0.92 0.48 0.60 0.95 1.1 1 1.42 0.48 0.56 0.60 0.39 0.96 

Loan loss provi sion to net charge-offs ...... 78 .22 97 .33 102.55 83.47 68.03 68 .22 89 .37 103.34 94.48 31.44 93.15 

Growth Rates (year-to-year, %) 

Net interest income................................... 2.7 - - 2.1 3.0 1.4 12.8 9.2 -1.8 

Net income.................... ............................ 43.5 61 .8 40.7 22 .6 24 .9 29.1 54 .8 

Net charge-offs ............... .....................•..... -31.9 - - -22.0 -50.3 -26.6 -25.4 -35 .3 -46.7 

Loan loss provision .. ................................. -40.7 - -41.9 -47.0 -32.9 -27.3 -67 .4 -38.8 

PRIOR FOURTH QUARTERS 

(The way It was . .. ) 

Return on assets (%) ........................ 1992 0.89 0.81 0.89 0.92 0.88 0.79 0.85 1.05 1.29 1.03 0.74 

........................................1990 0.09 0.29 0.43 -0.04 -0.04 -0.62 0.36 0.70 0.84 0.21 0.52 

............. ........................... 1988 0.78 0.27 0.53 0.78 1.08 1.03 0.85 1.03 0.37 -0.64 0.79 

Net charge-offs to loans & leases (%) 

1.40 0.80 1.03 1.55 1.60 1.86 1.07 0.80 0.88 0.67 1.78 

........................... ............. 1990 1.66 1.19 1.26 1.76 1.86 2.29 1.23 0.99 1.14 1.61 1.42 

........................................1988 1.20 1.33 0.99 1.09 1.36 1.11 0.77 0.84 1.40 2.23 1.60 

········ ·················· ··· ·········"1992 

Noncurrent Loan Rates At Year-end Annual Net Loan Charge-off Rates 

1984 - 1993 1984 - 1993 

% of Loans % of Loans 

6 3 

All ther* 

All~ 

5 2.5 

c~ 

___ ., Cons\umer 

4 2 

C&I 

3 1.5 ~~-- - # # ' # 

2 

Total Loans •• #

-·· ... # 

···•·;·•··· - 0.5

-··· /

Consumer Total Loans 

O 1984 1985 1986 1987 1988 1989 1 990 1991 1992 1993 

• Includes loans to foreign governments, depository institutions 

and lease receivables. 

FDIC-Insured Commercial Banks FDIC Quarterly Banking Profile 5 

Fourth Quarter 1993 
TABLE V-A. Real Estate Loan Performance and Other Real Estate Owned, FDIC-Insured Commercial Banks 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

December 31, 1993 All than $100 to to than $10 North- SouthI Mid- SouthInstitutions Million $1 Billion $10 Billion Billion east east Central west west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ............ ...... .... .... .... 1.56 1.41 1.31 1.49 1.84 2.22 1.21 1.29 1.00 1.26 1.46 

Construction and development... ................ ........... 2.35 1.12 1.62 2.30 3.22 4.39 1.20 1.90 0.98 1.19 2.14 

Commercial real estate.. .. ..... ..................... ...... ..... 1.79 1.15 1.19 1.81 2.59 3.08 0.99 1.24 1.31 1.11 1.77 

Multifamily residential real estate ............... ...... ..... 1.90 0.98 1.30 1.38 3.18 3.18 1.34 1.87 1.10 0.65 1.38 

1-4 Family residential• ........................................... 1.43 1.72 1.45 1.29 1.44 1.68 1.42 1.35 0.88 1.40 1.35 

Home equity loans ................................................. 0.82 1.17 0.78 0.77 0.85 1.05 0.56 0.64 0.55 1.54 0.77 

Commercial RE loans not secured by real estate ... 1.51 0.94 1.12 1.40 1.61 2.81 0.60 2.12 0.67 0.35 0.44 

Percent of Loans Noncurrenitt 

All real estate loans ................................................. 2.65 1.28 1.67 2.40 4.00 4.09 1.53 1.38 1.35 1.46 3.71 

Construction and development................... ........... 8.18 1.82 3.59 6.61 14.35 12.58 3.19 4.11 2.50 1.37 14.13 

Commercial real estate .... ... .. ... ....... ......... ............. 3.96 1.70 2.32 3.68 6.72 6.60 2.47 1.87 2.81 2.32 4.85 

Multifamily residential real estate ..................•....... 3.31 1.75 2.53 2.73 4.97 6.24 1.62 1.38 2.66 1.68 3.55 

1-4 Family residential• .......................... ... .............. 1.19 0.97 0.99 1.14 1.43 1.63 0.83 0.87 0.55 0.88 1.63 

Home equity loans .. .... ........................................... 0.70 0.74 0.67 0.60 0.80 1.13 0.41 0.34 0.26 0.56 0.58 

Commercial RE loans not secured by real estate... 4.67 1.48 1.31 2.62 5.86 7.94 3.69 1.69 2.88 0.39 3.10 

Percent of Loans Charged-off (net) 

All real estate loans............... .................................. 0.64 0.14 0.27 0.54 1.12 1.18 0.28 0.30 0.23 0.16 0.78 

Construction and development... ................ ...... .. .. . 2.41 0.09 0.81 1.67 4.31 4.13 0.77 1.98 0.37 0.08 2.89 

Commercial real estate ... ...................................... 0.95 0.20 0.35 0.91 1.79 1.93 0.47 0.37 0.64 0.24 0.96 

Multifamily residential real estate .................... ... ... 0.78 0.31 0.43 0.50 1.45 1.66 0.24 0.36 0.49 0.16 0.75 

1-4 Family residential• ...... .... .. ............................ ... 0.19 0.13 0.15 0.15 0.27 0.34 0.11 0.06 0.06 0.13 0.24 

Home equity loans .... .. ..... ...................... ....... .... .. ... 0.26 0.24 0.19 0.16 0.36 0.22 0.11 0.05 0.04 0.17 0.56 

Commercial RE loans not secured by real estate ... 1.78 0.92 1.43 1.35 1.98 3.28 0.33 3.03 -0.15 0.43 0.64 

Total Loans Outstanding (in billions) 

All real estate loans .............................. ... ....... ......... $922.6 $98.4 $224.4 $283.9 $315.9 $270.8 $190.1 $160.4 $62.8 $64.3 $174.2 

Construction and development .............................. 66.4 6.0 15.4 21.8 23 .2 17.5 15.2 10.3 3.4 4.6 15.4 

Commercial real estate ............................. .. ... ... .... 267.7 26.7 75.1 90.0 75.8 73.6 57 .1 49.3 16.0 20.0 51 .8 

Multifamily residential real estate .......... ... ..... ... .... . 29.7 2.3 8.1 9.8 9.4 8.1 5.7 5.8 2.0 2.0 6.0 

1-4 Family residential• .. .. ............................ ..... ...... 443.0 50.2 105.7 133.3 153.8 124.6 96.5 77.0 32.7 34 .3 77 .9 

Home equity loans .. .............................. ........ ......... 72.7 2.6 13.3 26.4 30.4 26.5 12.1 12.4 2.3 0.9 18.5 

Commercial RE loans not secured by real estate ... 17.7 0.3 1.4 4.1 11 .8 6.5 2.1 1.8 0.6 0.9 5.7 

Other Real Estate Owned (in millions) 

All other real estate owned..... ................... ... ........... $16,282 $1 ,185 $2,835 $3,559 $8,704 $8,519 $2,021 $1,276 $609 $1 ,047 $2,810 

Construction and development... ........................... 3,467 170 676 1,241 1,380 1,409 556 324 117 176 885 

Commercial real estate ......................................... 8,357 554 1,337 1,627 4,839 4,456 1,051 702 364 607 1,176 

Multifamily residential real estate .......................... 1,087 48 153 161 726 788 59 59 22 27 131 

1-4 Family residential ... ....... .. .................. .............. 2,214 322 587 485 821 951 321 155 67 165 555 

Farmland................. .. ... ..... ... .. .............. .... ............. 259 91 83 35 50 23 35 29 39 71 61 

Other real estate owned in foreign offices ..... ..... ... 899 0 0 11 888 890 0 7 0 0 2 

•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. 

Quarterly Net Interest Margins of Structural Changes Among FDIC-Insured 

. FDIC-Insured Commercial Banks, 1984- 1993 Commerclal Banks, 1980 -1993 

5 700r------------------

600 

New Charters 500 

4.5 

400 ~ 

300 

4 

Bank Mergers •• • • • ' 

100 ..,

4.38% ,TTTT Falled Banks 3.5 1 2341234 1 234 1 2341234123412341234 1 234 1 234 O '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 

FDIC Quarterly Banking Profile FDIC-Insured Commercial Banks 6

Fourth Quarter 1993 
SAVINGS INSTITUTION PERFORMANCE - FOURTH QUARTER, 1993 

• Savings Institutions Earned $1.8 Billion In The Fourth Quarter 

• Commercial Banks Take Over $37 Billion In Savings Institution 

Assets In 1993 

• No Savings Institutions Fail In The Quarter 

Privately-held FDIC-insured savings institutions earned 

$7 billion in 1993, for an average return on assets 

(ROA) of 0.72 percent. This marks the third 

consecutive year of positive earnings for savings 

institutions after four straight years of losses. Full-year 

net income and the average return on assets were the 

highest reported during the past ten years. Almost 95 

percent of savings institutions reported positive 

earnings for 1993 and nearly 70 percent reported 

earnings gains. Net income for 1993 was $283 million 

higher than in 1992. The largest contribution to the 

increase in earnings came from the provision for loan 

losses, which was $959 million lower in 1993 than in 

1992. 

Annual Return on Assets (ROA) 

1984 -1993 

ROA % 

0.8 

0.6 

0.4 

0.2 

Rye Hlgheet 

(0.2) 1993 0.72% 

1992 0.66% 

1985 0.46% 

(0.4) 1986 0.21 % 

1984 0.11% 

5 (0, )1 984 1985 1986 1987 1988 1989 1990 1991 1992 1993 

Earnings strength was not evenly distributed across the 

industry, with the Northeast Region and the West 

Region failing to match the returns of the rest of the 

country. Institutions with less than $1 billion in assets 

reported an average ROA in excess of 0.95 percent, 

while large institutions reported an average ROA below 

0.65 percent. Of the ten largest institutions, four 

institutions with almost ten percent of industry assets 

lost money in 1993. 

Savings institutions earned $1 .8 billion in the fourth 

quarter. Fourth-quarter earnings surpassed both the 

second and third quarters of 1993 and were 19 percent 

higher than a year earlier. However, fourth-quarter net 

income fell short of the $2.3 billion earned in the first 

quarter of 1993, when extraordinary gains from 

accounting changes boosted results. The average 

ROA was 0.73 percent in the fourth quarter, almost the 

same as for the full year. Fourth-quarter results 

benefited from reduced provisioning for loan losses, 

which was the lowest of any quarter in 1993 and 39 

percent lower than a year ago. Fourth-quarter earnings 

also benefited from a ten percent year-to-year drop in 

noninterest expenses. The net interest margin for 

savings institutions, which peaked at 3.56 percent in the 

second quarter, subsequently declined to 3.40 percent 

in the fourth quarter. 

In 1993, savings institutions continued to clean up their 

balance sheets by reducing their holdings of 

noncurrent loans by $3.7 billion and other real estate 

owned (OREO) by $6.9 billion. Troubled assets -­

noncurrent assets plus OREO -- as a percent of total 

assets fell from 3.07 percent at the beginning of 1993 

to 2.10 percent at year-end. Institutions in the West 

Region reduced their troubled assets to 2.44 percent of 

total assets from 3.60 percent at the beginning of 1993. 

For Institutions in the Northeast and the Southwest 

Regions this ratio at year-end was 2.72 percent and 

2.24 percent of assets, respectively, an improvement 

of more than one percentage point. Institutions in the 

West Region experienced the highest net charge-off 

rate, charging-off one percent of their loans in 1993. 

The loan loss allowance to noncurrent loans or 

"coverage ratio" reached 65 percent at the end of 

1993, up from 53 percent a year ago. 

The core capital (leverage) ratio for savings institutions 

reached 7.51 percent at the end of 1993, the highest 

level since savings institutions began reporting this 

ratio in 1990. Savings institutions retained over 

two-thirds of 1993 earnings in their capital accounts. 

Equity capital increased by $4.3 billion in 1993 and by 

$581 million during the fourth quarter. As with 

commercial banks, a significant portion of the 

fourth-quarter capital increase resulted from a change 

in Generally Accepted Accounting Principles. 

Quarterly Net Income 

1990 -1993 

$ Billions 

3 D Nel Opernling Income 2.4 - Securilies and Other Gains. Nel 

1.8 · 2 

0 

-1 

- 2 

-3 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1990 1991 1992 1993 

Total assets of the savings institution industry resumed 

their decline in the fourth quarter, after an up-tick in the 

third quarter. While total assets fell by 2.8 percent, 

mortgage-backed securities rose 7.7 percent. Other 

securities declined, resulting in a 3 percent net 

increase in total investment securities. The only other 

asset category that increased in 1993 was loans to 

individuals, which rose by about $1 billion, or 2.8 

FDIC QuMterly Banking Profile 7 FDIC-Insured Savings Institutions 

Fourth Quarter 1993 
percent. Real estate loan holdings fell by over $20 

billion in 1993, or 3.3 percent. 

During the year, the commercial bank industry 

absorbed 72 savings institutions with $37 billion in 

assets, while 14 commercial banks with $3 billion in 

assets were acquired by savings institutions. These 

mergers and charter conversions resulted in a net 

decrease of $34 billion in savings institution assets in 

1993. Industry assets would have increased by roughly 

$5 billion for the year without these transfers. The 

?outheast Region alone lost institutions with $18 billion 

1n assets to commercial banks in 1993, resulting in an 

18 percent decline in the region. · 

During the year, 115 institutions with $44 billion in 

assets converted from mutual to stock ownership. 

Mutual institution conversions have not reached this 

level since 1988, when 197 institutions with $55 billion 

in assets converted to stock ownership. Mutuals now 

hold less th?n 21 percent of industry assets, down from 

56 percent m 1984. Mutuals dominated the industry in 

~ 98_4, . representing .73 percent of all savings 

1nst1tut1ons, but now this group comprises less than half 

of the industry. Unlike stock institutions, mutuals retain 

all their earnings as capital. Historically, mutuals often 

have had higher average returns on assets and 

recently they have had higher capital ratios. At the end 

of 1993, mutuals had an average core capital ratio of 

9.18 percent while stock savings institutions had a ratio 

of 7.07 percent. In 1993, the average ROA of mutuals 

of 1.05 percent exceeded the average ROA for stock 

savings institutions by 42 basis points. 

No savings institutions failed in the fourth quarter of 

1993. Only eight savings institutions failed in all of 

1993, compared with 81 failures for 1992. The number 

of "problem" savings institutions continued to decline in 

the fourth quarter from 169 to 146 institutions, while 

assets fell from $103 billion to $92 billion. Assets of 

"problem• institutions at the end of 1993 were half the 

level of a year ago. 

Troubled Real Estate Asset Rates* 

December 31, 1993 

Nebraska 

1.31 

Kansas 

1.28 

,o 

~~ 

Hawaii C) 0 .72 

Troubled Real Estate Asset Rate: 

D Less than 3% 

D Between 3% and 6 

- Greater than 6% 

Northeast 

Puerto Rico 

5.69 

CJ 

Southeast 

*Noncurrent real estate loans plus 

other real estate owned as a percent 

of total real estate loans plus OREO 

FDIC-Insured Savings Institutions 8 FDIC Quarterly Banking Profile 

Fourth Quarter 1993 
TABLE 1-B. Selected Indicators, FDIC-Insured Savings Institutions* 

1993 1992 1991 1990 

Return on assets(%) ............................... ..... .. ................ . 0.72 0.66 0.07 -0.38 

Return on equity (%)....................................................... 9.45 9.53 1.20 -6.82 

Core capital (leverage) ratio(%) ................................... .. 7.51 6.77 5.54 4.62 

Noncurrent assets plus 

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

Net charge-offs to loans (%).......................................... .. 0.63 0.59 0.65 0.60 

Asset growth rate(%) ............. ...... ........................... ...... .. -2.80 -7.45 -11 .61 -11.79 

Net operating income growth(%) .. .................................. 12.47 N/M N/M N/M 

Number of institutions ...................................................... 2,264 2,390 2,561 2,815 

Percentage of unprofitable institutions ......................... .. . 5.48 7.66 18.51 30.12 

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

Assets of problem institutions (in billions) ...................... .. $92 $184 $291 $298 

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

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

(dollar figures in mil/Ions) Preliminary 

4thQtr 3rd Qtr 4th Qtr %Change 

1993 1993 1992 92:4-93:4 

Number of institutions reporting ...................... ....................... .. 2,264 2,297 2,390 -5.3 

Total employees (full-time equivalent) ............... .. ........... ..... .. .. 287,015 285,529 295,828 -3.0 

CONDITION DATA 

Total assets .................................................................... ........ . $1,001 ,288 $1,005,913 $1 ,030,116 -2.8 

Loans secured by real estate .......................................... .. 595,529 604,445 615,991 -3.3 

1-4 Family residential. .... ................................................ . 455,778 463,072 469,153 -2.8 

Multifamily residential property ....................................... . 64,277 64,714 66,108 -2.8 

Commercial real estate ........ ............................. .............. . 56,449 57,703 61 ,287 -7.9 

Construction, development and land ............................. .. 19,026 18,956 19,442 -2.1 

Commercial & industrial loans ................................ ........... 10,221 10,211 12,226 -1 6.4 

Loans to individuals..... ...................................................... 37,657 36,795 36,638 2.8 

Other loans & leases .......... .............................................. . 1,208 1,336 1,300 -7.1 

Less : Unearned income & contra accounts...... .. .............. . 9,258 9,493 9,431 -1.8 

Total loans & leases .......................................... .. .............. .. 635,357 643,294 656,724 -3.3 

Less: Reserve for losses .......... ......................................... .. 8,645 8,856 8,906 -2.9 

Net loans & leases ................................................................ . 626,712 634,438 647,818 -3.3 

Investment securities ............................................ ............... .. 275,677 268,581 267,584 3.0 

Other real estate owned ...................................................... .. 7,708 9,780 14,622 -47.3 

Goodwill and other intangibles ............................................ .. 6,034 6,067 7,261 -16.9 

All other assets ........... .. ........................................................ . 85,157 87,047 92,832 -8.3 

Total liabilities and capital.. ................................. ..... .. .............. 1,001,288 1,005,913 1,030,116 -2.8 

Deposits ................................................................................ . 774,418 780,715 828,352 -6.5 

Other borrowed funds ........................................ ................... . 134,018 132,571 113,332 18.3 

Subordinated debt... ........ ......................................... ............ . 2,533 2,699 3,056 -17.1 

All other liabilities ........................ ............................. ............. . 11,702 11,892 11,026 6.1 

Equity capital ... .. .............. ... .......... ............................. ........... . 78,616 78,035 74,351 5.7 

Loans and leases 30-89 days past due ....................... .. .. ...... .. 9,948 10,430 12,456 -20.1 

Noncurrent loans and leases .......... .. .. .. ................ .. ............... .. 13,288 14,692 16,958 -21.7 

Restructured loans and leases ...................................... ......... . 10,419 11,815 14,585 -28.6 

Direct and indirect investments in real estate ................ .. ...... .. 747 868 1,250 -40.2 

Mortgage-backed securities ................................................... . 198,709 189,789 184,472 7.7 

Earning assets ........................................................................ . 930,375 931,899 948,107 -1.9 

FHLB Advances (TFR filers only) .......................................... .. 75,974 74,956 64,058 18.6 

Unused loan commitments .... ................................................. . 95,653 95,949 69,291 38.1 

Preliminary Preliminary 

Full Year Full Year 4th Qtr 4th Qtr %Change 

INCOME DATA f-----~1_99_3___~1_99_2___0/4_oC_h_a_n,,__ge__~-~---~ 1993 1992 92:4-93:4 

Total interest income............................................. $66,202 $77,964 -15.1 $16,170 $18,565 -12.9 

Total interest expense....................................... .... 34,589 46,044 -24.9 8,328 10,276 -19.0 

Net interest income............................................. 31,613 31 ,920 -1.0 7,842 8,290 -5.4 

Provision for loan losses....................................... 4,231 5,190 -18.5 923 1,510 -38.9 

Total noninterest income.... ...... ....... ...................... 7,936 8,078 -1.8 2,281 2,316 -1.5 

Total noninterest expense..................................... 24,885 25,306 -1.7 6,411 7,095 -9.6 

Securities gains (losses).................. ..................... 406 687 -40.9 61 123 -50.3 

Applicable income taxes........................................ 3,895 3,766 3.4 1,056 751 40.6 

Extraordinary gains, net ....................................... 61 301 -79.6 12 146 -92.0 

Net income.......................................................... 7,006 6,723 4.2 1,806 1,518 19.0 

Net charge-offs...................................... ................ 3,917 3,903 0.4 928 1,132 -18.1 

Cash dividends................................................ ...... 2,278 2,106 8.1 834 716 16.5 

Net operating income.......................................... 6,647 5,910 12.5 1,751 1,280 36.8 

*Excludes institutions in Resolution Trust Corporation conservatorship and one self-liquidating institution. NIM - Not meaningful 

FDIC Quarterly Banking Profile 9 FDIC-Insured Savings Institutions 

Fourth Quarter 1993 
TABLE 111-8. Full Year 1993, FDIC-Insured Savings Institutions* 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

FULL YEAR Preliminary 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............ .... 2,264 1,049 1,041 146 28 826 368 569 166 147 188 

Total assets (in billions) ............................. $1 ,001.3 $53.4 $299.1 $306.9 $341 .8 $336.7 $89.3 $151.0 $50.9 $56.9 $316.5 

Total deposits (in billions) ............ ........... ... 774.4 46.5 249.7 231.0 247.3 275.4 70.6 118.4 38.8 37.4 233.8 

Net income (in millions) ............................. 7,005.6 526.5 2,798.2 1,952.3 1,728.6 2,225.2 734.4 1,412.6 485.9 923.9 1,223.8 

% of unprofitable institutions ..................... 5.5 4.7 5.2 11 .6 14.3 5.4 8.2 2.6 1.2 1.4 16.0 

% of institutions with earnings gains ......... 69.5 66.1 73.6 66.4 60 .7 77.4 67.9 66.4 66.9 61.2 55.9 

Performance Ratios (o/o) 

Yield on earning assets ............................. 7.29 7.63 7.52 7.18 7.1 3 7.28 7.43 7.52 7.39 6.84 7.21 

Cost of funding earning assets .................. 3.81 3.81 3.78 3.74 3.89 3.52 3.97 3.97 4.18 3.89 3.91 

Net interest margin .................................... 3.48 3.81 3.73 3.44 3.24 3.76 3.45 3.55 3.20 2.95 3.30 

Noninterest income to earning assets ....... 0.87 0.72 0.88 0.89 0.88 0.68 0.93 0.79 0.87 1.81 0.94 

Noninterest expense to earning assets ..... 2.74 2.79 2.86 2.77 2.60 2.90 2.76 2.55 2.42 2.65 2.73 

Net operating income to assets ................. 0.68 0.95 0.88 0.70 0.44 0.64 0.84 0.99 0.94 1.45 0.34 

Return on assets ....... ..... .. ... .. ................ .... 0.72 1.00 0.96 0.65 0.52 0.68 0.85 0.96 0.99 1.64 0.39 

Return on equity ........................ ............... . 9.45 11 .24 11 .64 8.69 7.54 8.84 11 .06 11 .60 13.17 24.24 5.41 

Net charge-offs to loans and leases .......... 0.63 0.15 0.27 0.48 1.10 0.65 0.26 0.11 0.15 0.27 1.00 

Loan loss provision to net charge-offs ...... 108.01 167.51 145.1 5 118.60 95.67 94.14 131.48 221.07 131.84 101.32 108.93 

Condition Ratios (o/o) 

Loss allowance to: 

Loans and leases .................................... 1.36 0.89 1.23 1.53 1.41 1.66 1.21 0.84 0.83 0.87 1.48 

Noncurrent loans and leases.................. 65.06 57.46 71 .60 74.74 55.97 56.17 89.20 107.89 108.33 84.13 62 .72 

Noncurrent assets plus 

other real estate owned to assets.. ......... 2.10 1.39 1.74 2.17 2.45 2.72 1.51 0.72 0.83 2.24 2.44 

Noncurrent RE loans to RE loans ............. 2.09 1.49 1.67 2.06 2.53 2.97 1.29 0.73 0.76 1.08 2.37 

Equity capital ratio ..................................... 7.85 9.32 8.63 7.73 7.04 8.00 8.10 8.53 7.89 7.12 7.42 

Core capital (leverage) ratio ...................... 7.51 9.23 8.47 7.41 6.49 7.87 7.86 8.29 7.47 6.70 6.82 

Gross real estate assets to gross assets .. 78 .76 72.43 74.64 78.18 83.89 74.24 77.52 80.06 78.49 76.25 83.78 

Gross 1-4 family mortgages to gr. assets . 44 .72 50.78 44.46 38.36 49.71 40.49 46.43 47 .81 45.30 29.65 49.91 

Net loans and leases to deposits .............. 80.93 74 .70 74 .39 77.22 92.15 71 .06 79.39 78.32 77.93 69.72 96.62 

Growth Rates (year-to-year, o/o) 

Assets .......................... ............................. -2.8 - . - -1.3 -18.1 0.4 3.0 -7.4 -0.7 

Equity capital ............................................. 5.7 - - - 8.8 -11 .3 8.5 15.3 4.2 5.9 

Net interest income ..................................• -1 .0 . - 0.5 -19.0 3.7 6.5 6.8 -0.7 

Net income ................................................ 4.2 - - - 10.8 -13.3 6.4 -9.6 -0.3 13.8 

Noncurrent assets plus 

other real estate owned ........................... -33.5 - - -29.4 -49.1 -27.1 -30.7 -47.2 -32.8 

Net charge-offs .......................................... 0.4 - -31 .8 -47.1 -43.4 -30.2 -19.5 58.5 

Loan loss provision ................... ................ -18 .5 - - - -31.2 -55.8 -21.9 -29.9 -52.3 -0.7 

PRIOR FULL YEARS 

(The way it was ... ) 

Number of institutions ....................... 1992 2,390 1,109 1,094 158 29 852 416 590 176 154 202 

............... ........................ 1991 2,561 1,184 1,166 182 29 909 459 620 187 163 223 

....................................... 1990 2,815 1,322 1,252 205 36 982 521 666 203 188 255 

Total assets (in billions) .....................1992 $1,030.1 $55.9 $316.2 $325.3 $332.6 $341 .2 $109.0 $150.5 $49.5 $61.4 $318.6 

....................................... 1991 1,113.0 58.9 334.5 380.9 338.7 377.1 122.2 155.0 49 .7 63.5 345.4 

............................... ........ 1990 1,259.2 64.4 364.8 424.4 405.6 411.2 151.9 172.2 55.7 77.5 390.7 

Return on assets (%) .. ... ............ .. .....1992 0.66 0.86 0.81 0.68 0.46 0.60 0.77 0.90 1.12 1.55 0.34 

·······································1991 0.07 0.34 0.24 0.05 -0.11 -0.39 0.09 0.51 0.58 0.53 0.21 

······················· ················1990 -0.38 0.05 -0.22 -0.58 -0.38 -0.79 -0.52 0.24 0.04 -0.Q? -0.28 

Net charge-offs to loans & leases (%) 

............. ......... ..... .......... .. 1992 0.59 0.23 0.37 0.67 0.76 0.89 0.38 0.20 0.21 0.34 0.60 

·······································1991 0.65 0.30 0.50 0.84 0.66 1.12 0.58 0.21 0.28 0.40 0.45 

································-··· ··1990 0.60 0.25 0.57 0.73 0.57 0.91 0.60 0.24 0.35 0.77 0.46 

Noncurrent assets plus 

OREO to assets (%) .. ......... .... 1992 3.07 1.79 2.35 3.12 3.92 3.80 2.43 0.99 1.24 3.92 3.60 

·······································1991 3.96 2.25 3.13 4.57 4.40 5.13 3.65 1.38 1.61 7.44 3.65 

... .......... ........................ .. 1990 3.98 2.37 3.48 4.91 3.72 4.85 3.96 1.37 2.55 13.21 2.60 

Equity capital ratio (%) .............•........ 1992 7.22 8.47 7.71 7.12 6.63 7.26 7.48 7.89 7.05 6.32 6.97 

··· ····································1991 6.17 7.78 6.79 5.85 5.62 6.19 6.02 6.87 5.47 4.62 6.26 

....................................... 1990 5.36 7.27 6.34 4.94 4.62 6.09 4.87 6.38 4.42 3.04 4.93 

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

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-Insured Savings Institutions 10 FDIC Quarterly Banking Profile 

Fourt11 Quarter 1993 
TABLE IV-8. Fourth Quarter 1993, FDIC-Insured Savings Institutions* 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

FOURTH QUARTER Preliminary All than $100 to to than $5 North- South- Mid- South-

(The way it Is . .. ) Institutions Million $1 Billion $5 Bil lion Billion east east Central I west west 

Number of institutions reporting ................ 2,264 1,049 1,041 146 28 826 368 569 166 147 

Total assets (in billions) ................. ............ $1,001 .3 $53.4 $299.1 $306 .9 $341.8 $336.7 $89.3 $151.0 $50.9 $56.9 

Tot al deposits (in billions) ... ............. ...... .... 774.4 46.5 249.7 231 .0 247.3 275.4 70.6 118.4 38.8 37.4 

Net income (in millions) .. .. .... .................... . 1,806 117 624 647 418 768 138 292 109 210 

% of unprofitable institutions ..................... 8.0 8.5 6.8 11 .6 14.3 7.5 9.8 5.4 6.0 4.8 

% of institutions with earnings gains .. ....... 51 .5 50.0 51.8 56.8 71.4 56 .1 51 .4 49.4 45.2 49 .0 

Performance Ratios (annualized,3⁄4) 

Yield on earning assets ...... .. ..................... 7.01 7.46 7.30 6.87 6.80 6.93 7.20 7.17 7.17 6.77 

Cost of funding earning assets .................. 3.61 3.66 3.61 3.53 3.67 3.29 3.82 3.73 4.04 3.81 

Net interest margin ................... ..... .......... .. 3.40 3.79 3.69 3.34 3.13 3.64 3.38 3.44 3.13 2.96 

Noninterest income to earning assets ....... 0.99 0.78 0.89 0.89 1. 20 0.65 0.95 0.77 0.97 1.86 

Noninterest expense to earning assets .. .. 2.78 3.00 2.93 2.62 2.75 2.76 2.83 2.59 2.52 2.79 

Net operating income to assets................. 0.70 0.86 0.82 0.83 0.46 0.80 0.78 0.89 0.85 1.20 

Return on assets ........ .. .. ............. ...... ........ 0.73 0.88 0.84 0.85 0.49 0.92 0.62 0.78 0.87 1.48 

Return on equity ......... ...... .... ..................... 9.31 9.53 9.84 11 .06 6.98 11.59 7.73 9.16 11 .13 21.12 

Net charge-offs to loans and leases .......... 0.59 0.17 0.30 0.34 1.08 0.55 0.31 0.11 0.27 0.18 

Loan loss provision to net charge-offs ...... 99 .52 154.14 131 .15 147.01 79.45 97 .89 117.79 228.27 87.22 72 .47 

Growth Rates (year-to-year,3⁄4) 

. . . . . . . 

Net interest income ...... ...... ....................... -5.4 -6.7 -21 .8 -3.1 3.5 3.7 

Net income ....... ...................................... ..• 19.0 44 .9 -27.0 -13.3 -35.4 -14 .7 

Net charge . . . -offs .............. ......... .......... ......... -18.1 -49 .8 -31 .5 -47.3 6.6 -61 .8 

Loan . . . loss provision ....................... .......... .. -38.9 -43 .0 -52.4 -31.4 -16.3 -73.8 

PRIOR FOURTH QUARTERS 

(The way it was . .. ) 

Return on assets (%) ........................1992 0.59 0.82 0.76 0.74 0.24 0.62 0.69 0.90 1.39 1.60 

...................... ................. 1991 0.06 0.32 0.39 -0.07 -0.16 -0.56 0.26 0.47 0.80 0.12 

...................... ................. 1990 -0.95 -0.28 -0.70 -1 .24 -0.97 ·1 .63 -0.82 0.11 0.29 -0.07 

Net charge-offs to loans&leases (%) 

....................................... 1992 0.69 0.24 0.42 0.73 0.96 1.05 0.36 0.21 0.26 0.49 

0.73 0.34 0.60 1.01 0.66 1.36 0.58 0.25 0.38 0.41 

... ... .................... .. ........... 1990 0.91 0.36 0.89 1.07 0.86 1.53 0.76 0.25 0.25 0.56 

*Excludes 1nst1tut1ons in Resolution Trust Corporation conservatorsh1p and one self-liqu1dat1ng 1nst1tut1on. 

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

West 

188 

$316.5 

233 .8 

290 

18.6 

45.7 

6.98 

3.73 

3.25 

1.31 

2.91 

0.38 

0.37 

4.96 

0.96 

94 .18 

-1.5 

506.6 

29.7 

-34.5 

0.06 

0.36 

-1.09 

0.72 

0.45 

0.71 

Assets Held by Mutual and Stock 

Savings Institutions, 1984 - 1993 

Assets 

($ Mill ions) 

1,200 ,--------~-----------, 

900 

300 

123 4 1234 1 23 4 123 4 123 41 23 4 123 4 123 4 12 3 4123 4 

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 

Quarterly Return on Assets (ROA) 

of FDIC-Insured Mutual and Stock 

Savings Institutions, 1984 - 1993 

ROA% 

1.5 ...--------------------, 

Mutual Savings Institutions Stock Savings Institutions 

0.5 

Mutual (0.5) & Hlslbnl Va)un 

93:1 1.09% 

(1) 93:3 1.01% 0.69% 

92:3 0.94% 0.67% 

92:4 0.93% 0.63% (1 .5) 93:2 0.93% 86:1 0.60% 

93:4 0.88% 

(2) ..........................................................................................................-.. 

1 2 3 4 1 2 3 412 3 4 123 4 123 4 1234123 4 123 41 23 41 23 4 

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 

FDIC Quarterly Banking Profile 11 FDIC-Insured Savings Institutions 

Fourth Quarter 1993 
TABLE V-B. Real Estate Loan Performance and Other Real Estate Owned, FDIC-Insured Savings Institutions" 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

December 31, 1993 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 .................. ............ 1.52 2.31 1.55 1.44 1.42 1.94 1.54 1.12 1.30 1.34 1.37 

Construction, development and land ... ..... ............. 1.46 1.20 1.22 2.30 0.66 2.87 1.16 0.83 1.17 0.64 1.19 

Commercial real estate.......... .... .... ......... ........... ... 1.94 1.93 1.85 1.95 2.06 2.35 1.86 1.21 1.66 1.10 1.78 

Multifamily residential real estate .......... .. .............. 1.16 1.87 1.40 1.25 0.98 1.54 1.26 0.69 1.41 0.60 1.11 

1-4 Family residential .... ........................................ 1.52 2.43 1.54 1.36 1.46 1.89 1.54 1.17 1.26 1.51 1.39 

Percent of Loans NoncurreniAll real estate loans ..... ............... ...... .................. .. ... 2.09 1.49 1.67 2.06 2.53 2.97 1.29 0.73 0.76 1.08 2.37 

Construction, development and land........ ..... ........ 3.89 1.77 3.05 6.14 3.43 7.55 2.61 1.33 1.10 0.67 5.46 

Commercial real estate .... ... ...... ..... .... ................ ... 4.48 3.11 3.96 4.46 5.41 5.67 2.98 1.93 3.37 1.88 4.54 

Multifamily residential real estate ... ................. ... .. . 3.36 3.47 2.96 3.90 3.17 5.52 2.02 1.17 1.82 1.73 3.09 

1-4 Family residential ............................................ 1.53 1.22 1.12 1.21 2.14 2.10 0.92 0.57 0.45 0.99 1.87 

Percent of Loans Charged-off (net) 

All real estate loans ................................................. 0.54 0.11 0.22 0.37 0.98 0.54 0.15 0.06 0.11 0.13 0.91 

Construction, development and land ..................... 0.73 0.27 0.55 1.14 0.72 1.54 0.42 0.15 0.10 0.64 0.75 

Commercial real estate ..... ........................ .... ........ 1.53 0.37 0.66 1.16 3.20 1.36 0.49 0.26 0.70 -0.01 2.57 

Multifamily residential real estate .............. ............ 0.83 0.33 0.55 0.67 1.07 0.64 0.91 0.25 0.39 0.00 1.05 

1-4 Family residential. ....... .............................. ..... . 0.37 0.07 0.10 0.16 0.76 0.37 0.06 0.02 0.04 0.11 0.67 

Total Loans Outstanding (in billions) 

All real estate loans ........ ...... ................................... $595.5 $33.3 $177.9 $163.2 $221 .2 $180.4 $53.6 $89.3 $27.7 $22.6 $221 .9 

Construction, development and land ................ .. ... 19.0 1.5 9.4 5.5 2.6 4.5 4.0 3.7 0.8 1.9 4.1 

Commercial real estate .... ...... .................... ... .. ...... 56.4 2.8 20 .2 18 .1 15.4 23.0 5.4 5.5 2.1 1.7 18.9 

Multifamily residential real estate ......................... . 64.3 1.3 12.5 19.8 30.6 14.7 1.7 6.7 1.4 1.5 38.3 

1-4 Family residential .... ........................................ 455.8 27 .6 135.8 119.7 172.6 138.3 42.5 73.5 23.4 17 .5 160.6 

Other Real Estate Owned (in millions)" .. 

All other real estate owned ............... .......... ............. $7,708 $201 $2,000 $2,949 $2,557 $3,262 $577 $355 $192 $1 ,002 $2,320 

Construction, development and land ........ ............. 2,174 29 608 927 609 966 209 41 24 556 379 

Commercial real estate .... ........................ ............. 2,447 55 756 939 697 1,008 224 201 118 249 648 

Multifamily res idential real estate .......................... 1,433 30 282 701 420 475 51 60 42 199 606 

1-4 Family residential .. .......................................... 2,578 110 607 615 1,246 1,037 165 108 45 87 1,135 

Troubled Real Estate Asset Rates.... 

(3⁄4 of total RE assets) 

All real estate loans ................................................. 3.34 2.08 2.76 3.80 3.64 4.69 2.34 1.12 1.44 5.29 3.39 

Construction, development and land ..................... 13.74 3.60 8.94 19.69 21 .90 23.91 7.48 2.41 3.93 22.97 13 .37 

Commercial real estate ......................................... 8.45 4.99 7.43 9.17 9.51 9.63 6.86 5.40 8.54 14.55 7.71 

Multifamily residential real estate .......................... 5.47 5.57 5.10 7.1 8 4.48 8.48 4.83 2.05 4.64 13.36 4.60 

1-4 Family residential .... ..... ........................ ... .... ... . 2.09 1.61 1.56 1.71 2.85 2.83 1.30 0.72 0.64 1.48 2.56 

*Excludes 1nst1tut1ons in Resolution Trust Corporation conservatorsh1p and one self-hqu1dat1ng 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. 

Spread Between Short - Term and Long - Term Yields 

30-Year Treasury Bonds Versus 3 - Month Treasury BIiis 

Yield (%) 

10 

Yield on 30 - Year Treasury Bonds 

8 

6 

4 

Yield on 3- Month Treasury Bills 2 

0 

1989 1990 1991 1992 1992 1992 1992 1993 1993 1993 1993 

40 40 4Q 10 20 30 40 10 20 30 40 

30 - Year Bonds 7.93 8.55 7.85 7.80 7.90 7.44 7.53 7.08 6.86 6.32 6.13 

3- Month Bills 7.65 6.99 4.54 3.91 3.68 3.08 3.07 2.96 2.97 3.00 3.06 

Spread 0.28 1.58 3.31 3.89 4.22 4.36 4.46 4.12 3.89 3.32 3.07 

FDIC-Insured Savings Institutions 12 FDIC Quarterly Banking Profile 

Fourth Quarter 1993 
ALL FDIC-INSURED INSTITUTIONS BY INSURANCE FUND 

• Total Assets Of All FDIC-Insured Institutions Increase $172 

Billion (3.8 Percent) During 1993 

• Funding Is Less Reliant On Insured Deposits 

Total assets at all 13,221 private-sector FDIC-insured 

institutions reached $4.7 trillion at year-end 1993. 

Asset growth in 1993 was greatest in consumer loans, 

residential mortgage loans, mortgage-backed securities 

and other investment securities. Among the many 

benchmarks of improved asset quality, troubled assets 

at year-end 1993 were one-third lower than a year 

ear1ier. 

Asset growth was funded by a changing liability 

structure which was less reliant on insured deposits. 

Growth in foreign-office deposits, borrowed funds and 

equity -- plus a shift away from higher-cost time 

deposits -- resulted in a 2.4 percent annual decline in 

insured deposits at private-sector institutions. This 

included a 2.1 percent drop in deposits insured by the 

Bank Insurance Fund (BIF) and a 2.9 percent drop in 

deposits insured by the Savings Association Insurance 

Fund (SAIF). If the $13.2 billion decline in SAIF-insured 

deposits in RTC conservatorships were included, 

SAIF-insured deposits fell 4.6 percent. 

In the fourth quarter of 1993, five FDIC-insured 

institutions failed (total assets $481 million), all of which 

were BIF-member commercial banks.1 This brought 

the total for BIF in 1993 to 41 failures ($3.5 billion), 

compared to 122 failures ($44 billion) in 1992. Among 

SAIF-member institutions, there were nine failures ($6.1 

billion) for all of 1993, compared to 59 failures ($44 

billion) in 1992. 

BIF members are predominantly commercial banks 

supervised by one of the three federal bank regulatory 

1 Failures include assistance transactions and Institutions placed In 

conservatorship. 

agencies, and SAIF members are predominantly 

savings institutions supervised by the Office of Thrift 

Supervision (OTS). As a result of recent changes, 

however, the roles of insurer and primary federal 

supervisor are no longer determined strictly by charter 

type. These changes are described in the following 

narrative and table. 

"Sasser• institutions. Since 1989, institutions have 

been permitted to change charter type and primary 

federal supervisor without changing insurance fund 

membership. One result has been an increase in the 

number of SAIF-member institutions changing from 

supervision by OTS to supervision by one of the federal 

banking agencies. On December 31, 1993, there were 

277 SAIF-member institutions subject to bankingagency supervision, usually the FDIC. 

"Oakar• deposits. Deposits may be acquired by a 

member of one insurance fund from a member of the 

other fund, but this portion of the acquirer's deposits 

retains coverage under the former owner's fund. As a 

result, different portions of the deposits in a single 

institution can be insured by different funds. On 

December 31, 1993, 569 Bl F-member institutions helg 

an estimated $137 billion in SAIF-insured deposits, 

and 26 SAIF-member institutions held an estimated 

$4.8 billion in BIF-insured deposits. Oakar transactions 

account for a significant portion of the period-to-period 

decreases in the SAIF-member aggregates in Tables 

1-E and 11-E. 

2 This Includes Home Savings of America, FSB, Irwindale, CA (total 

assets $50 billion}, a BIF-member savings bank which had $35 billion 

In SAIF-insured deposits at year-end 1993. 

Estimated Insured Deposits by Fund Membership 

and Type of Institution 

December 31, 1993* 

(dollar figures in millions) Number of Total Total Estimated Insured Deposits 

Institutions Assets Deposits BIF SAIF Total 

FDIC-Insured Commercial Banks.................... 10,957 3,705,947 2,753 ,929 1,737,833 106,550 1,844,383 

BI F-member ... ... ...... ......... ... ... .... ............. ..... .... 10,887 3,690 ,019 2,741,660 1,737,298 98,609 1,835,907 

SAIF-member ........... .. ........... .. .. ..... ............ ...... 70 15,928 12,269 535 7,941 8,476 

FDIC-Insured Savings Institutions .................. 2,264 1,001,288 774,418 166,748 571 ,340 738,088 

OTS-Supervised Savings Institutions .......... 1,669 774,813 587,097 21 ,678 537,445 559,123 

BI F-member ....... .. ... .... .... ....... .... ....... ..... .... .. . 16 71,305 54,652 17,422 35,134 52,556 

SAIF-member ...... .... ...... ....... ... ....... ......... ...... 1,653 703,508 532,445 4,256 502,311 506,567 

FDIC-Supervised State Savings Banks ........ 595 226,475 187,321 145,070 33 ,895 178,965 

BIF-member .... ... .. ... .. ..... .... .. .......... .... ... ....... . 388 188,462 155,488 145,070 3,033 148,103 

SAIF-member .......... . , ...... ............ ... .......... ... .. 207 38,013 31 ,833 0 30 ,862 30 ,862 

All FDIC-Insured Institutions ............................ 13,221 4,707,235 3,528 ,347 1,904,581 677,890 2,582,471 

BIF-member ..... ... ..... ..... .. .................. ............... 11 ,291 3,949,786 2,951 ,800 1,899,790 136,776 2,036,566 

SAIF-member .... ...... ...... ...... .. .... ... .... . ..... ........ . 1,930 757,449 576,547 4,791 541 ,114 545,905 .. *Figures do not include 63 SAIF-member institutions 1n RTC conservatorsh1p, with $17.7 billion in SAIF-insured deposits and 

one SAIF-member self-liquidating institution with $1 .2 million in insured deposits. Also excluded are $2.4 billion in BIF-insured 

deposits in U.S. branches of foreign banks. 

All FDIC-Insured Institutions FDIC Quarterly Banking Profile 13 

Fourth Quarter 1993 
TABLE 1-C. Selected Indicators, All FDIC-Insured Institutions* 

1992 1991 1990 

Number of institutions reporting ....................... ............. .. 13,221 13,852 14,482 15,1 58 

Total assets ................................................. ................... . $4,707,235 $4,535,639 $4,543,612 $4,648,643 

(dollar figures in mil/Ions) 1-------1_9_93_ ____________ _ 

Total deposits ...................................................... ............ 3,528,347 3,526,945 3,594,273 3,637,267 

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

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

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

Assets of failed/assisted institutions in billions ........... .. . $10 $88 $142 $145 

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

(dollar figures In ml/lions) Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

1993 1993 1992 92:4-93:4 

Number of institutions reporting ..... ................ .. ....................... . 13,221 13,378 13,852 -4.6 

Total employees (full-time equivalent) .......... .. .. .................... ... 1,780,363 1,762,494 1,773,710 0.4 

CONDITION DATA 

Total assets ................................ ... .................. .... ......... .. ...... .. . $4,707,235 $4,637,241 $4,535,639 3.8 

Loans secured by real estate ................ .. ......................... . 1,518,172 1,506,202 1,484,334 2.3 

1-4 Family residential ... .. .............. ...... .......................... . 971 ,466 958,906 932,600 3.9 

Home equity loans ................................. .. ................... . 90,465 92,889 93,567 -3.3 

Multifamily residential property ..................................... . 93,937 93,543 93,340 0.6 

Commercial real estate .......................... .. .................. ... . 324,054 323,186 318,997 1.6 

Construction, development and land .. .......................... . 85,444 87,624 98,067 -12.9 

Other real estate loans.. ................................... ............ . 43,270 42,944 41 ,330 4.7 

Commercial & industrial loans .............................. ........... .. 549,173 539,865 548,396 0.1 

Loans to individuals ............................. ............................ .. 456,644 439,934 421,943 8.2 

Credit cards & related plans ................. .. ................. ...... .. 163,880 151,965 145,553 12.6 

Other loans & leases ....... ................................................ .. 277,185 270,877 252,123 9.9 

Less: Unearned income & contra accounts ..... ............... ... 16,002 16,657 18,214 -12.1 

Total loans & leases ............................................. ..... ........ .. 2,785,171 2,740,221 2,688,582 3.6 

Less: Reserve for losses ................................. .......... .. ....... . 61 ,276 62,746 63,384 -3.3 

Net loans & leases .... .. .... ...................... ................... .. ..... .. ..... 2,723,895 2,677,475 2,625,199 3.8 

Investment securities .. ........................................... ............. . . 1,112,239 1,089,535 1,040,460 6.9 

Other real estate owned .................................... .................. .. 23,990 29,681 40,445 -40.7 

Goodwill and other intangibles ............................................. . 24,057 22,899 22,811 5.5 

All other assets ...... .. ............................... ............................ .. . 823,053 817,650 806,725 2.0 

Total liabilities and capital.. ........................... ........................ .. . 4,707,235 4,637,241 4,535,639 3.8 

Deposits....................................................... ....... .......... .. .. .. ... 3,528,347 3,477,040 3,526,945 0.0 

Estimated Insured Deposits.. .. ... ............... .......................... . 2,582,471 2,569,457 2,644,585 -2.4 

BIF-insured deposits (estimated) ...................................... . 1,904,581 1,884,761 1,946,385 -2.1 

SAIF-insured deposits (estimated) .......................... ...... ... . 677,890 684,696 698,200 • -2.9 

Other borrowed funds ......................................................... .. . 631 ,789 616,774 519,939 21 .5 

Subordinated debt. .. ........................................ .. ..... ...... ........ . 39,905 39,700 36,787 8.5 

All other liabilities ...................................... .. ........................ . .. 131 ,757 137,073 114,198 15.4 

Equity capital.. ....... .......................................................... ..... . 375,437 366,654 337,770 11 .2 

Loans and leases 30-89 days past due ................................ ... 38,617 39,158 46,969 -17.8 

Noncurrent loans and leases.................................................. . 56,029 64,884 79,167 -29.2 

Restructured loans and leases .................................. ............. . 20,590 23,189 26,499 -22.3 

Direct and indirect investments in real estate ......................... . 1,290 1,265 1,803 -28.4 

Mortgage-backed securities ................... .. ..... .. .............. ......... . 535,683 528,275 491 ,245 9.1 

Earning assets.......... ... ................ ... ................ ........................ . 4,220,965 4,138,406 4,035,843 4.6 

Unused loan commitments ..................................................... . 1,548,758 1,477,196 1,341 ,362 15.5 

Preliminary Preliminary 

Full Year Full Year 4th Qtr 4th Qtr %Change 

INCOME DATA 1993 1992 %Change 1993 1992 92:4-93:4 

Total interest income ........................... .. .... ............ $311,361 $333,192 -6.6 $79,415 $81 ,201 -2.2 

Total interest expense .... ..... ............. .. ..... ............. . 140,369 167,856 -16.4 35,607 37,892 -6.0 

Net interest income ........ .. ................ ...... ..... ..... ... 170,992 165,336 3.4 43,808 43,309 1.2 

Provision for loan losses .... ................. .. .. ............. . 20,820 31,236 -33.4 4,728 7,922 -40.3 

Total noninterest income .. .. ......... .......... ..... .......... . 82,899 73,692 12.5 22,380 19,067 17.4 

Total noninterest expense ................... .... ............. . 164,470 156,223 5.3 43,109 41 ,872 3.0 

Securities gains (losses) .... ..................... ............ .. 3,470 4,693 -26.1 454 889 -49.0 

Applicable income taxes ................... .. ................. .. 23,787 18,253 30.3 6,124 4,431 38.2 

Extraordinary gains, net... .................................... . 2,152 711 202.6 245 230 6.6 

Net income ............... ..... ..................................... . 50,435 38,721 30.3 12,926 9,270 39.4 

Net charge-offs .... ................ ................. ................. 21,380 29,548 -27.6 5,792 8,273 -30.0 

Cash dividends .................. ................... .............. ... 24,293 16,236 49.6 8 ,922 6,303 41.5 

Net operating income ...... ..................... .. ............ . 45,776 34,553 32.5 12,315 8,379 47.0 

•Excludes institutions in Resolution Trust Corporation conservatorship, one self-liquidating savings institution, and insured branches of foreign banks. 

All FDIC-Insured Institutions 14 FDIC Quarterly Banking Profile 

Fourth Quarter 1 993 
___ ___ _ ____ _ 

169 

TABLE 1-D. Selected Indicators, BIF-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) ............. . 

___19_9_3___ 

11,291 

$3,949,786 

2,951,800 

472 

$269 

41 

$4 

___ 1_99_2_ 

11,813 

$3,711 ,372 

2,873,080 

856 

$464 

122 

$44 

1991 

12,305 

$3,660,425 

2,881,740 

1,089 

$610 

127 

$63 

1990 

12,791 

$3,646,839 

2,861,441 

1,046 

$409 

$15 

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

(dollar figures in millions) Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

1993 1993 1992 92:4-93:4 

Number of institutions reporting .............................................. . 11,291 11 ,422 11,813 -4.4 

Commercial banks.. .... ............................ .......... ............ ........ . 10,887 11,013 11,399 -4.5 

Savings institutions .................................. ......................... .... . 404 409 414 -2.4 

Total employees (full-time equivalent) .................................... . 1,556,299 1,542,587 1,536,987 1.3 

CONDITION DATA 

Total assets..... .................................... .................. ................. . $3,949,786 $3,877,488 $3,711 ,372 6.4 

Loans secured by real estate, total. ...................................... . 1,068,809 1,052,618 987,220 8.3 

1-4 Family residential. ........................... ....... .......... ............ . 622,056 606,718 548,557 13.8 

Multifamily residential property .... .. ..................................... . 48,154 47,233 40,339 19.4 

Commercial real estate....................................................... . 286,555 284,671 275,701 3.9 

Construction, development and land .................................. . 68,831 71,108 81,332 -15.4 

Commercial & industrial loans ........................ ...................... . 543,283 534,001 540,801 0.5 

Reserve for losses .............................................. ................ . 55,282 56,643 56,894 -2.8 

Total deposits ....................................................................... . 2,951,800 2,899,399 2,873,080 2.7 

Estimated insured deposits ....................................... ............ 2,036,566 2,017,928 2,021,371 0.8 

BIF-insured deposits (estimated) ......................................... 1,899,790 1,880,835 1,944,066 -2.3 

SAIF-i nsured deposits (estimated) ...................................... 136,776 137,093 77,305 76.9 

Noncurrent loans and leases ................................................. 47,465 55,273 67,496 -29.7 

Other real estate owned....................................................... . 18,561 22,779 29,566 -37.2 

Equity capital. ....................................................................... . 316,662 308,282 279,689 13.2 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions: 

Well capitalized .. ............................... ..................................... 11,065 11,149 11,281 -1.9 

Adequately capitalized .................................................. .. .... .. . 176 200 360 -51 .1 

Undercapitalized ........................... ......................................... 18 40 74 -75.7 

Significantly undercapitalized ...................................... ......... . 22 29 51 -56.9 

Critically undercapitalized ...................... ............................... . 10 4 47 -78.7 

Total assets: 

Well capitalized ..................................................................... . $3,801,092 $3,696,382 $3,246,331 17.1 

Adequately capitalized ........ ................................................... 140,986 168,357 418,977 -66.4 

Undercapitalized ................................................................... . 1,395 6,010 11,369 -87.7 

Significantly undercapitalized .............................................. . 4,911 6,202 22,132 -77.8 

Critically undercapitalized .. ............................................. ..... . . 1,402 537 12,563 -88.8 

Preliminary Preliminary 

Full Year Full Year 4th Qtr 4th Qtr %Change 

INCOME DATA 1993 1992 %Change 1993 1992 92 :4-93:4 

Net interest income ........................................ ...... . $147,864 $140,572 5.2 $38,056 $36,915 3.1 

Provision for loan losses ...................................... . 18,008 27,267 -34.0 4,017 6,733 -40.3 

Net income ........................................................... . 44,923 33,328 34.8 11,725 8,152 43.8 

Net charge-offs ..................................................... . 18,999 27,077 -29.8 5,103 7,567 -32.6 

Number of institutions reporting net losses .......... . 518 823 -37.1 1,092 1,546 -29.4 

*Excludes insured branches of foreign banks. 

FDIC Quarterly Banking Profile 15 BIF-Member Depository Institutions

Fourth Quarter 1993 
TABLE 1-E. Selected Indicators, SAIF-Member Depository Institutions* 

(dollar figures in millions) 1--- ----19_9_3_ _____19_9_2___ ___ 1991 _ ___ 1990

Number of institutions reporting ..................................... . 1,930 2,039 2,177 2,367 

Total assets ..................................... ......... .. .................... . $757,449 $824,267 $883,187 $1,001,804 

Total deposits ................................................................. . 576,547 653,865 712,533 775,826 

Number of problem institutions ....................................... . 100 207 337 446 

Assets of problem institutions (in billions) ....................... . $65 $128 $209 $231 

Number of failed/assisted institutions ............................. . 9 59 144 213 

Assets of failed/assisted institutions (in billions) ............. . $6 $44 $79 $130 

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

(dollar figures in millions) Preliminary 

4th Quarter 3rd Quarter 4th Quarter % Change 

1993 1993 1992 92:4-93:4 

Number of institutions reporting ............................................... 1,930 1,956 2,039 -5.3 

Commercial banks ..................................... ............................ 70 68 63 11.1 

Savings institutions ............................................................... . 1,860 1,888 1,976 -5.9 

Total employees (full-time equivalent) .......... ........................... 224,064 219,907 236,723 -5.4 

CONDITION DATA 

Total assets .................. ....... ....... ........... .............. ................... . $757,449 $759,753 $824,267 -8.1 

Loans secured by real estate, total................................. ...... . 449,363 453,584 497,114 -9.6 

1-4 Family residential ......................................................... . 349,410 352,188 384,043 -9.6 

Multifamily residential property .......................................... .. 45,783 46,309 53,001 -13.6 

Commercial real estate ....................................................... . 37,500 38,515 43,295 -13.4 

Construction, development and land ................................ ... 16,614 16,516 16,736 -0.7 

Commercial & industrial loans ............................................. .. 5,890 5,865 7,594 -22.5 

Reserve for losses ............................................................... 5,994 6,103 6,489 -7.6 

Total deposits ....................................................................... . 576,547 577,642 653,865 -11.8 

Estimated insured deposits ................................ ................... 545,905 551,529 623,214 -12.4 

BIF-insured deposits (estimated) ....................................... .. 4,791 3,926 2,319 106.6 

SAIF-insured deposits (estimated) ................................... . .. 541,114 547,603 620,895 -12.8 

Non current loans and leases.. ............................................... 8,563 9,612 11,671 -26.6 

Other real estate owned ....................................................... . 5,430 6,902 10,879 -50.1 

Equity capital ........................................................................ . 58,776 58,372 58,081 1.2 

CAP/TAL CA TEGORY DISTRIBUTION 

Number of institutions: 

Well capitalized ..................... ................................................. 1,822 1,815 1,709 6.6 

Adequately capitalized ............................... .......................... . 97 126 249 -61.0 

Undercapitalized ................................................................... . 9 10 35 -74.3 

Significantly undercapitalized ............................................... . 1 4 32 -96.9 

Critically undercapitalized ...... ........................ .......... ............. . 1 1 13 -92.3 

Total assets: 

Well capitalized .................................... ................................. . $670,348 $650,845 $610,186 9.9 

Adequately capitalized ......................................................... .. 85,099 106,482 164,249 -48.2 

Undercapitalized .................................. .................... ............ . . 1,790 1,874 12,497 -85.7 

Significantly undercapitalized .............................................. . 107 539 26,305 -99.6 

Critically undercapitalized .. .................................................... 104 13 10,946 -99.1 

Preliminary Preliminary 

Full Year Full Year 4th Qtr 4th Qtr 3⁄4Change 

INCOME DATA 1993 1992 3⁄4Change 1993 1992 92:4-93:4 

Net interest income.............. ................. .... ............ $23,127 $24,764 -6.6 $5,752 $6,394 -10.0 

Provision for loan losses........................ ............... 2,812 3,968 -29.2 711 1,190 -40.2 

Net income................................ .......................... .. 5,512 5,393 2.2 1,201 1,118 7.4 

Net charge-offs...................................................... 2,381 2,471 -3.7 689 707 -2.6 

Number of institutions reporting net losses........... 101 143 -29.4 156 201 -22.4 

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

SAIF-Member Depository Institutions 16 FDIC Quarterly Banking Profile 

Fourth Quarter 1993 
:

Number of FDIC- Insured 11Problem11 Institutions 

1990 - 1993 

Number of Institutions 

2000 - Commercial Banks 

,,,,,,,,,,,,,,=,====•=•=•=•==== 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 

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

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

Assets of FDIC - Insured "Problem" Institutions 

1990 - 1993 

Amounts in Billions 

1,000 Commercial Banks 

819 :::::::::=:::=:::::::::::::::: Savings Institutions

800 

809 

-

600 

400 

200 

, 

0 

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

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

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

FDIC Quarterly Banking Profile 17 All FDIC-Insured Institutions 

Fourth Quarter 1993 
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). Most institutions included in 

this publication are traditional full-service commercial banks. However, several types of more specialized institutions are also included, which under existing legislative definitions and regulatory 

practices are considered commercial banks. These institutions 

include banks primarily engaged in credit card operations, home 

equity lending or consumer-orientated activities, banks created 

primarily to benefit parent company operations, and banks that limit 

or restrict their activities or scope of operations. 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-8.) 

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). 

All 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 Financial Time 

Series (FTS) 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 

All FDIC-Insured Institutions 

accounting differences exist, such as asset sales with recourse, 

for which the data necessary to reconcile these differences is not 

reported. 

All year-to-date and quarterly income statement figures used in 

calculating performance ratios represent amounts for that period, 

annualized (multiplied by the number of periods in a year). Quarterly income figures from the Thrift Financial Report are accumulated for each reporting institution to obtain a year-to-date income 

statement. For institutions that file a Ca// Report, the reported 

year-to-date income statement figures for two periods are used to 

derive a quarterly income statement after making adjustments to 

account for "pooling-of-interest" mergers since they include yearto-date income for all merged institutions. 

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. All asset and liability figures used in calculating the condition ratios represent amounts reported at the end 

of the quarter. 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. 

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, securities held in trading accounts, 

federal funds sold, securities purchased with agreements to resell, 

and other assets. 

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

preferred stock, and other liabilities. 

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

accounts of less than $100,000 insured by the BIF. For SA IF-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 ~10% and ~6% and ~5% 

Adequately capitalized ~8% and ~4% and ~4% 

Undercapitalized <8% or <4% or <4% 

Significantly 

undercapitalized <6% or <3% or <3% 

Critically undercapitalized -- ::;2% 

•Asa 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 asset~ -- total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets. 

18 FDIC Quarterly Banking Profile 

Fourth Quarter 1993 
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. 

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 ATC -- 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. 

Gross real estate assets -- real estate loans, other real estate 

owned, direct and indirect investments in real estate, and mortgage-backed securities before subtracting any reserves. 

Gross 1-4 family mortgages -- real estate loans secured by 1-4 

family properties before subtracting any reserves. 

Investment securities -- excludes securities held in trading accounts where possible. 

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. 

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

from balance sheet because of uncollectibility), less amounts 

recovered on loans and leases previously charged off. 

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

depositors and other creditors, expressed as a percentage of 

average earning assets. No adjustments are made for interest 

income that is tax exempt. 

Net loans and leases -- total loans and leases less unearned 

income, other contra accounts and the allowance ("reserve") for 

ioan and lease losses. 

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. 

FDIC Quarterly Banking Profile 

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). 

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, forTFR 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 SAi F-member institutions for which the FDIC 

is the primary federal regulator, FDIC composite ratings are used. 

For all SAIF-member institutions whose primary federal regulator 

is the OTS, the OTS composite rating is used. 

Provision for loan losses -- provision for loan and lease losses 

plus provision for allocated transfer risk reserve. 

Reserve for loan losses -- the allowance for loan and lease losses 

plus the allowance for allocated transfer risk. 

Restructured loans and leases -- loan and lease financing receivables with terms restructured from the original contract. Excludes restructured loans and leases that are not in compliance 

with the modified terms. 

Return on assets -- net income (including gains or losses on 

securities and extraordinary items) as a percentage of average 

total assets. The basic yardstick of bank profitability. 

Return on equity -- net income (including gains or losses on 

securities and extraordinary items) as a percentage of average 

total equity capital. 

Risk-weighted assets -- assets adjusted for risk-based capital 

definitions which include on-balance sheet as well as off-balance 

sheet items multiplied by risk weights that range from zero to 100 

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

equivalent amount for selected 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. 

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. 

Yield on earning assets -- total interest, dividend and fee income 

earned on loans and investments as a percentage of average 

earning assets. 

Fourth Quarter 1993 19 All FDIC-Insured Institutions