Donna Tanoue, Chairman 

Second Quarter 1998 

FDIC 

Division of Research 

& Statistics 

Don Inscoe 

Associate Director 

Statistics Branch 

(202) 898-3940 

Tim Critchfield 

(202) 898-8557 

Jim McFadyen 

(202) 898-7027 

Ross Waldrop 

(202) 898-3951 

COMMERCIAL BANK PERFORMANCE – SECOND QUARTER, 1998 

• Industry Earnings Exceed $16 Billion For First Time 

• Higher Fee Income Helps Lift Profits 

• Credit-Quality Indicators Remain Stable 

• Asset Growth Slows, But Commercial Lending Remains Strong 

In the second quarter of 1998 commercial bank 

earnings exceeded $16 billion for the first time. 

Bank earnings totaled $16.1 billion, an increase 

of $210 million over the previous record, set in 

the first quarter, and $1.5 billion (10.2 percent) 

more than banks earned in the second quarter of 

1997. Industry profitability remained both high 

and stable. The annualized return on assets 

(ROA) was 1.25 percent, slightly lower than the 

previous quarter’s 1.26 percent and slightly higher than the 1.24 percent registered a year earlier. More than half of all banks – 59.5 percent – 

reported earnings higher than a year ago, and 

more than two-thirds – 69.6 percent – had ROAs 

of 1 percent or higher. In the first six months of 

1998, commercial banks earned $32.0 billion, an 

improvement of 9.9 percent ($2.9 billion) over 

the first half of 1997. The industry’s first-half 

ROA of 1.25 percent matched its performance in 

the first half of 1997. 

QUARTERLY NET INCOME, 

1994–1998 $ Billions 

16.1 

15.3 Securities and Other Gains, Net 15.9 

Net Operating Income 14.514.614.7 

13.8 15 13.8 13.7 13.2 

11.8 12.0 

11.111.2 

12.0 12.0 10.7 11.1 

10 

5 

0 

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

1994 1995 1996 1997 1998 

Noninterest income remained the primary contributor to revenue growth. Spurred by rising fee 

income, noninterest income totaled $30.7 billion 

in the second quarter, up $5.4 billion (21.3 percent) from the second quarter of 1997 and $1.5 

billion (5.0 percent) from the first quarter of 1998. 

This is the first time that the industry’s noninterest income has exceeded $30 billion in a quarter. Noninterest income accounted for a record 

40.2 percent of banks’ net operating revenue. 

Growth in income from trust activities and other 

fee income was especially strong; trading 

income, however, was lower than in the first 

quarter, although it was higher than a year ago. 

Banks continue to register gains on sales of 

securities; although these gains declined for the 

second consecutive quarter, they still added 

$575 million to pre-tax earnings in the second 

quarter, almost twice as much as a year earlier. 

NONINTEREST INCOME PROVIDES A 

GROWING PROPORTION OF BANK REVENUE, 

1985–1998 

Noninterest Income, % of Net Operating Revenue* 

40 

40.2 

30 

24.0 

20 

1986 1988 1990 1992 1994 1996 1998 

*Net operating revenue equals net interest income plus noninterest income. 

Requests for copies of and subscriptions to the FDIC Quarterly Banking Profile should be made through the FDIC’s Public 

Information Center, 801 17th Street, NW, Washington, DC 20434; telephone (202) 416-6940 or (800) 276-6003. 

Also available on the Internet at www.fdic.gov. Comparable financial data for individual institutions can now be obtained 

from the FDIC’s Institution Directory (I.D.) System on this Web site. 
est income was the result of an 8.0 percent rise in 

earning assets during the past 12 months. 

try’s net interest margin in the second quarter was 4.10 

percent. 

ter’s average of 4.06 percent, but it was down from 

4.26 percent a year earlier and is the second-lowest 

quarterly margin in the last seven years. 

Noncurrent loans to foreign borrowers increased by $167 million during the 

, and were $1.1 billion higher than a year ago. 

, 0.94 percent of all commercial bank loans 

were noncurrent; this is the lowest level in the 17 years 

that banks have been reporting data on noncurrent 

, although 

 

 

 

 

 

 

 

The indus

This was slightly higher than the first quar

above the level of a year ago. 

quarter

At midyear

loans.

Asset growth slowed in the second quarter

Net interest income was $2.0 billion (4.7 percent) 

higher than a year ago, as the negative effect of lower 

net interest margins was outweighed by growth in 

interest-bearing assets. The improvement in net inter-

-

-

QUARTERLY NET INTEREST MARGINS, 

1994–1998 

Net Interest Margin (%) 

5.0 

4.5 

4.0 

Assets < $100 Million 

Assets > $100 Million 

4.62% 

4.07% 

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

1994 1995 1996 1997 1998 

Industry profits also benefited from slower growth in 

domestic credit-loss provisions, even though new 

reporting rules in 1998 expanded the coverage of this 

expense item.1 Banks set aside $5.3 billion in provisions during the second quarter, an increase of $235 

million (4.7 percent) over the second quarter of 1997. 

The increase was entirely the result of a $235-million 

(98.3 percent) rise in provisions related to banks’ international operations. Even though these provisions 

declined for a second consecutive quarter, they were 

still almost twice as high as a year ago. Net chargeoffs totaled $4.9 billion in the second quarter, an 

increase of $507 million (11.5 percent) from the second quarter of 1997. Of the industry’s net charge-offs, 

credit-card loans accounted for $3.0 billion (61.8 percent) while international operations accounted for 

$299 million. Charge-offs on international operations 

were $247 million higher than a year earlier. The 

annualized net charge-off rate in the second quarter 

was 0.64 percent, unchanged from the first quarter 

and only 2 basis points higher than the 0.62 percent 

rate registered in the second quarter of 1997. 

Noncurrent loans declined by $413 million in the second quarter but remained $505 million (1.8 percent) 

CREDIT CARD LOSS RATES AND PERSONAL 

BANKRUPTCY FILINGS, 1984–1998 

Net Charge-Off Rate (%) Number of Bankruptcy Filings (Thousands) 

7 

Credit Card Charge-Off Rates 

Personal 

Bankruptcy 

Filings 

400 

6 350 

5 300 

4 250 

3 200 

2 150 

1 100 

50 

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 0 

Sources: Bankruptcies - Administrative Office of the United States Courts 

Charge-Off Rates - Commercial Bank Call Reports 

loan growth remained robust. Total assets increased 

by $71.8 billion, compared to a $96.0-billion increase 

in the first quarter, and a $129.9-billion increase in the 

second quarter of 1997. Loans increased by $67.0 billion, intangible assets were up by $10.0 billion, and 

other assets rose by $15.0 billion. But banks’ securities 

holdings declined by $10.9 billion and assets in trading 

accounts fell by $4.1 billion, as revaluation gains on 

off-balance-sheet contracts in foreign offices declined 

by $12.6 billion (this was partially offset by an increase 

of $10.1 billion in revaluation gains on off-balancesheet contracts in domestic offices). Commercial and 

industrial loans continued to exhibit strong growth, 

increasing by $30.3 billion, while leases grew by $5.7 

billion and real estate construction loans rose by $4.9 

billion. Credit-card loans increased by only $5.1 billion, 

but the amount of credit-card receivables that have 

been securitized and sold off-balance-sheet increased 

by $29.5 billion.2 Banks now have securitized and 

sold more of their credit-card loans off-balance-sheet 

1See Accounting Changes, p.21. 

2The second-quarter increases in credit-card loans and securitized receivables were overstated as a result of a credit-card 

bank becoming a directly owned subsidiary of another bank. 

See the section on Computation Methodology in the Notes to 

Users, p. 21. 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 Second Quarter 1998 
 

 

 

 

 

 

 

($238.7 billion) than they have retained on-balancesheet ($217.0 billion). 

Over the past 12 months, total assets have increased 

by 8.6 percent, while commercial and industrial loans 

have grown by 12.6 percent. During this period, the 

strength in commercial and industrial lending has not 

extended to smaller borrowers. In the 12 months 

ended June 30, commercial and industrial loans in 

original amounts of $1 million or less increased by only 

5.3 percent. 

COMMERCIAL AND INDUSTRIAL LOANS TO 

SMALL BUSINESSES, 1994–1998 

$ Billions 

500 Small Businesses 479.5 

400 

300 

200 

155.2 

100 

0 

166.9 177.5 189.6 199.7 

302.8 

352.3 369.6 

404.1 

(Original Loan amounts < $1Million) 

Medium/Large Businesses 

(Original Loan amounts > $1Million) 

1994 1995 1996 1997 1998 

As of June 30 

Deposits increased by $38.9 billion in the quarter, with 

foreign-office deposits rising by $20.5 billion. Demand 

notes were up by $27.0 billion, while short-term (less 

than one year) borrowings increased by $14.1 billion. 

Fed funds purchased declined by $34.8 billion. Equity 

capital increased by $16.1 billion, as retained earnings 

CAPITAL RATIOS, 1992–1998 Ratios (%) 

14 

12 

10 

8 

6 

Tier 1 Risk-Based Capital 

Equity to Assets 

Total Risk-Based Capital 

Core Capital (Leverage) 

1992 1993 1994 1995 1996 1997 1998 

contributed $8.4 billion, merger-related goodwill 

increased by $4.0 billion, and other intangible assets 

increased by $6.0 billion. Over the past 12 months, 

goodwill and other intangible assets have increased by 

more than one-third as a result of heightened merger 

and acquisition activity. A year ago, intangible assets 

comprised 14.1 percent of all commercial bank equity 

capital; at midyear, the proportion had risen to 17.1 

percent. 

The number of insured commercial banks fell below 

9,000 for the first time since 1934, as 91 banks were 

absorbed by mergers, 49 new banks were chartered, 

and 1 bank failed. At midyear there were 8,984 commercial banks reporting financial results, 40 fewer than 

at the end of the first quarter. The number of commercial banks on the FDIC’s “Problem List” declined 

from 67 to 64 during the quarter, while assets of “problem” banks remained at $5 billion. 

NUMBER OF FDIC-INSURED COMMERCIAL BANKS, 

1984–1998 

Number of Institutions 

15,000 

14,482 

14,000 

13,000 

12,000 

11,000 

10,000 

8,984 9,000 

8,000 

1984 1986 1988 1990 1992 1994 1996 6/98 

STRUCTURAL CHANGES AMONG FDIC-INSURED 

COMMERCIAL BANKS, 1994–1998 

Number of Institutions 

250 

200 

150 

100 

50 

0 

1994 1995 1996 1997 1998 

New Charters 

Failed Banks 

Mergers 

1 

49 

91 

FDIC Quarterly Banking Profile 

Second Quarter 1998 3 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

1998* 1997* 1997 1996 1995 1994 1993 

Return on assets (%)............................................. 1.25 1.25 1.23 1.19 1.17 1.15 1.20 

Return on equity (%)............................................. 14.84 14.90 14.69 14.45 14.66 14.61 15.34 

Core capital (leverage) ratio (%).............................. 7.64 7.76 7.56 7.64 7.61 7.64 7.65 

Noncurrent assets plus 

other real estate owned to assets (%) .................. 0.65 0.69 0.66 0.75 0.85 1.01 1.61 

Net charge-offs to loans (%).................................... 0.64 0.60 0.64 0.58 0.49 0.50 0.85 

Asset growth rate (%)............................................. 8.62 8.51 9.54 6.16 7.53 8.21 5.72 

Net interest margin................................................ 4.09 4.23 4.21 4.27 4.29 4.36 4.40 

Net operating income growth (%).............................. 6.89 14.48 12.48 6.44 7.48 16.18 35.36 

Number of institutions reporting.............................. 8,984 9,309 9,143 9,528 9,940 10,451 10,958 

Percentage of unprofitable institutions (%).................. 4.44 3.96 4.80 4.28 3.55 3.98 4.89 

Number of problem institutions................................. 64 74 71 82 144 247 426 

Assets of problem institutions (in billions).................. $5 $5 $5 $5 $17 $33 $242 

Number of failed/assisted institutions........................ 1 0 1 5 6 11 42 

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

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

(dollar figures in millions) 

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

Preliminary 

2nd Quarter 1st Quarter 2nd Quarter %Change 

1998 1998 1997 97:2-98:2 

... 8,984 9,024 9,309 -3.5 

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

CONDITION DATA

1,593,873 1,557,256 1,513,911 5.3 

 Total assets..................................................................... $5,182,759 $5,111,008 $4,771,367 8.6

 Loans secured by real estate............................................. 1,284,564 1,272,777 1,194,707 7.5

 Commercial & industrial loans.......................................... 850,388 820,043 755,170 12.6

 Loans to individuals......................................................... 547,880 542,245 557,628 -1.7

 Farm loans..................................................................... 47,082 43,062 43,662 7.8

 Other loans & leases...................................................... 366,077 349,707 319,727 14.5

 Less: Unearned income................................................... 4,326 4,377 5,145 -15.9

 Total loans & leases......................................................... 3,091,664 3,023,457 2,865,748 7.9

 Less: Reserve for losses................................................... 56,379 55,201 54,522 3.4

 Net loans and leases......................................................... 3,035,285 2,968,255 2,811,226 8.0

 Securities........................................................................ 894,496 905,412 820,458 9.0

 Other real estate owned................................................... 3,530 3,734 4,377 -19.3

 Goodwill and other intangibles............................................. 76,195 66,208 56,772 34.2

 All other assets............................................................... 1,173,252 1,167,398 1,078,534 8.8 

Total liabilities and capital................................................... 5,182,759 5,111,008 4,771,367 8.6

 Noninterest-bearing deposits............................................. 687,030 665,698 668,062 2.8

 Interest-bearing deposits..................................................... 2,819,544 2,801,945 2,611,791 8.0

 Other borrowed funds...................................................... 873,052 856,606 788,465 10.7

 Subordinated debt............................................................ 67,283 66,177 54,285 23.9

 All other liabilities............................................................ 289,875 290,658 245,904 17.9

 Equity capital.................................................................. 445,974 429,924 402,860 10.7 

Loans and leases 30-89 days past due................................. 35,711 38,877 35,155 1.6 

Noncurrent loans and leases................................................ 29,084 29,497 28,579 1.8 

Restructured loans and leases............................................. 1,961 2,104 3,396 -42.3 

Direct and indirect investments in real estate........................... 535 549 651 -17.9 

1-4 family residential mortgages.......................................... 741,051 736,905 690,460 7.3 

Mortgage-backed securities................................................ 392,983 402,403 345,737 13.7 

Earning assets.................................................................. 4,458,963 4,415,084 4,129,430 8.0 

Long-term assets (5+ years)................................................ 873,380 837,721 698,493 25.0 

Volatile liabilities............................................................... 1,671,329 1,648,332 1,520,316 9.9 

Foreign office deposits......................................................... 549,037 528,573 504,198 8.9 

Unused loan commitments................................................... 3,478,088 3,280,839 2,834,696 22.7 

Off-balance-sheet derivatives................................................ 28,837,695 26,726,750 23,831,385 21.0 

INCOME DATA 

Total interest income.........................................

Total interest expense......................................... 

 Net interest income.......................................... 

Provision for loan losses..................................... 

Total noninterest income.................................... 

Total noninterest expense.................................... 

Securities gains (losses)....................................

Applicable income taxes..................................... 

Extraordinary gains, net....................................... 

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

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

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

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

Preliminary Preliminary 

First Half First Half 2nd Quarter 2nd Quarter %Change 

1998 1997 %Change 1998 1997 97:2-98:2 

... $178,610 $164,947 8.3 $89,980 $83,933 7.2 

88,771 79,259 12.0 44,477 40,454 9.9

89,839 85,689 4.8 45,504 43,479 4.7 

10,236 9,322 9.8 5,265 5,030 4.7 

59,810 49,923 19.8 30,651 25,276 21.3 

92,107 81,871 12.5 46,392 41,422 12.0 

... 1,372 713 92.4 575 298 92.8 

17,167 16,026 7.1 8,932 7,991 11.8 

524 35 N/M -13 28 N/M

... 32,036 29,140 9.9 16,128 14,638 10.2 

... 9,696 8,437 14.9 4,900 4,393 11.5 

18,600 17,982 3.4 7,764 9,475 -18.1

30,615 28,642 6.9 15,763 14,419 9.3 

N/M - Not Meaningful 
TABLE III-A. First Half 1998, FDIC-Insured Commercial Banks 

FIRST HALF Preliminary 

(The way it is...) 

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

All 

Instituitions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

8,984 5,647 2,963 310 64 704 1,473 1,962 2,307 1,570 968 

Total assets(in billions).................................... $5,182.8 $259.1 $734.0 $929.0 $3,260.7 $1,908.5 $1,102.7 $845.3 $339.0 $302.6 $684.8 

Total deposits(in billions).................................... 3,506.6 221.7 606.0 627.3 2,051.7 1,151.4 748.8 593.1 256.6 249.4 507.1 

Net income(in millions)....................................... 32,036 1,585 4,929 7,084 18,437 10,831 6,689 5,387 2,493 1,755 4,882 

% of unprofitable institutions.............................. 4.4 6.1 1.5 2.9 NA 5.0 5.6 3.6 2.7 4.1 8.8 

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

Performance ratios (annualized, %) 

63.4 58.6 71.5 70.0 81.3 67.2 62.9 63.6 61.8 61.0 68.8 

Yield on earning assets.................................... 8.12 8.30 8.34 8.57 7.92 8.08 7.87 8.05 8.52 7.96 8.62 

Cost of funding earning assets........................... 4.04 3.73 3.72 3.89 4.18 4.56 3.75 4.00 3.86 3.45 3.53 

Net interest margin.......................................... 4.09 4.57 4.61 4.68 3.73 3.52 4.11 4.05 4.66 4.51 5.09 

Noninterest income to earning assets.................. 2.72 1.48 1.70 3.05 2.98 3.41 2.28 2.00 2.61 1.59 3.12 

Noninterest expense to earning assets.................. 4.19 3.97 3.84 4.45 4.21 4.43 4.00 3.56 4.17 3.98 4.75 

Loan loss provision to assets.............................. 0.40 0.20 0.27 0.73 0.35 0.41 0.29 0.32 0.52 0.23 0.67 

Net operating income to assets........................... 1.20 1.23 1.35 1.42 1.10 1.06 1.17 1.29 1.48 1.15 1.40 

Return on assets............................................. 1.25 1.24 1.37 1.56 1.14 1.16 1.21 1.31 1.48 1.18 1.43 

Return on equity............................................. 14.84 11.31 14.18 16.44 14.87 15.69 13.63 15.37 16.21 12.85 14.50 

Net charge-offs to loans and leases..................... 0.64 0.20 0.33 1.11 0.60 0.86 0.40 0.39 0.72 0.39 0.90 

Loan loss provision to net change-offs.................. 104.31 171.18 134.88 99.99 101.12 91.59 114.12 121.35 107.51 107.42 112.83 

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

Condition Ratios (%) 

59.57 65.02 60.01 55.23 60.55 62.18 60.25 57.42 56.15 63.32 55.14 

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

Loss allowance to: 

86.03 91.92 91.55 89.02 83.48 82.70 87.87 89.03 90.34 89.11 85.20 

Loans and leases.......................................... 1.82 1.45 1.50 2.14 1.83 2.14 1.50 1.55 1.78 1.41 2.18 

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

Noncurrent assets plus 

193.85 134.15 170.98 208.84 199.43 175.36 198.48 195.30 206.91 155.06 248.07 

other real estate owned to assets..................... 0.65 0.77 0.65 0.73 0.62 0.74 0.57 0.56 0.64 0.59 0.69 

Equity capital ratio.......................................... 8.60 10.99 9.71 9.75 7.84 7.50 9.42 8.58 9.20 9.16 9.87 

Core capital (leverage) ratio.............................. 7.64 10.79 9.28 8.62 6.73 6.92 7.77 7.97 8.65 8.29 8.24 

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

Structural Changes (YTD) 

86.56 68.37 72.99 94.47 90.12 81.55 95.07 91.69 88.39 66.77 88.19 

New Charters................................................... 76 72 4 0 0 7 22 9 8 10 20 

Banks absorbed by mergers.............................. 235 114 104 13 4 10 96 44 26 34 25 

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

PRIOR FIRST HALVES

 (The way it was...) 

1 1 0 0 0 0 0 1 0 0 0 

Number of institutions................................1997 9,309 6,048 2,888 306 67 738 1,543 2,049 2,357 1,648 974

 ...............................................1995 10,169 6,987 2,783 331 68 815 1,685 2,220 2,560 1,815 1,074

 ...............................................1993 11,199 8,089 2,737 319 54 895 1,870 2,454 2,744 1,988 1,248 

Total assets (in billions)..............................1997 $4,771.4 $273.5 $711.3 $916.0 $2,870.6 $1,810.7 $855.1 $795.9 $289.3 $342.1 $678.4

 ................................................1995 4,170.8 306.6 680.7 1,057.3 2,126.2 1,590.1 701.6 681.5 268.6 313.0 616.0

 ................................................1993 3,569.4 340.7 667.1 1,010.7 1,550.8 1,348.4 568.5 587.0 239.1 286.3 540.1 

Return on assets (%)................................1997 1.25 1.24 1.36 1.26 1.21 1.16 1.29 1.26 1.45 1.24 1.31

 ................................................1995 1.13 1.18 1.22 1.27 1.02 0.99 1.15 1.17 1.41 1.17 1.27

 ................................................1993 

Net charge-offs to loans and leases (%) 

1.20 1.25 1.22 1.28 1.12 1.08 1.22 1.29 1.43 1.58 1.05 

 ................................................1997 0.60 0.21 0.35 0.99 0.55 0.69 0.43 0.44 0.79 0.30 0.83

 ................................................1995 0.41 0.17 0.33 0.60 0.37 0.54 0.26 0.25 0.45 0.17 0.57

 ................................................1993 

Noncurrent assets plus 

0.87 0.30 0.50 0.93 1.10 1.35 0.42 0.50 0.56 0.25 0.96 

OREO to assets (%)................................1997 0.69 0.79 0.72 0.82 0.64 0.75 0.61 0.62 0.69 0.60 0.79

 ................................................1995 0.94 0.86 0.88 0.86 1.01 1.18 0.69 0.64 0.65 0.65 1.22

 ................................................1993 2.18 1.28 1.58 1.91 2.81 2.95 1.45 1.21 1.21 1.23 2.98 

Equity capital ratio (%)...............................1997 8.44 10.84 9.69 9.14 7.68 7.38 8.93 8.56 9.21 9.54 9.66

 ................................................1995 8.03 10.39 9.35 8.49 7.03 7.50 8.07 8.22 8.83 8.59 8.48

 ................................................1993 7.89 9.80 8.63 8.20 6.94 7.14 7.94 8.14 8.94 8.24 8.76 

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 
TABLE IV-A. Second Quarter 1998, FDIC-Insured Commercial Banks 

SECOND QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- South 

west west West 

8,984 5,647 2,963 310 64 704 1,473 1,962 2,307 1,570 968 

Total assets (in billions).................................... $5,182.8 $259.1 $734.0 $929.0 $3,260.7 $1,908.5 $1,102.7 $845.3 $339.0 $302.6 $684.8 

Total deposits (in billions)................................. 3,506.6 221.7 606.0 627.3 2,051.7 1,151.4 748.8 593.1 256.6 249.4 507.1 

Net income (in millions).................................... 16,128 795 2,505 3,245 9,583 5,391 3,448 2,707 1,255 843 2,484 

% of unprofitable institutions.............................. 4.9 6.6 1.9 4.5 5.7 6.2 3.6 2.9 5.3 9.0 

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

Performance Ratios (annualized, %) 

59.5 54.5 67.4 69.0 81.3 62.9 58.9 59.7 59.1 56.8 62.6 

Yield on earning assets.................................... 8.11 8.37 8.37 8.63 7.86 8.12 7.75 8.04 8.52 7.97 8.62 

Cost of funding earning assets........................... 4.01 3.75 3.74 3.92 4.12 4.57 3.61 4.02 3.85 3.46 3.51 

Net interest margin.......................................... 4.10 4.62 4.63 4.72 3.74 3.55 4.14 4.03 4.67 4.52 5.12 

Noninterest income to earning assets.................. 2.76 1.48 1.72 3.17 3.00 3.47 2.23 2.06 2.71 1.58 3.25 

Noninterest expense to earning assets.................. 4.18 4.02 3.87 4.60 4.14 4.41 3.87 3.60 4.25 4.07 4.85 

Credit loss provision to assets........................... 0.41 0.21 0.26 0.75 0.36 0.42 0.31 0.32 0.53 0.24 0.67 

Net operating income to assets........................... 1.22 1.23 1.36 1.40 1.14 1.11 1.20 1.28 1.49 1.09 1.44 

Return on assets............................................. 1.25 1.24 1.38 1.41 1.18 1.15 1.24 1.30 1.48 1.12 1.45 

Return on equity............................................. 14.72 11.27 14.23 14.70 15.25 15.36 13.77 15.15 16.21 12.23 14.68 

Net charge-offs to loans and leases..................... 0.64 0.23 0.35 1.12 0.59 0.83 0.43 0.41 0.72 0.42 0.90 

Loan loss provision to net change-offs.................. 105.31 153.63 124.42 102.27 103.01 95.08 113.29 118.01 108.24 101.38 112.34 

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

Structural Changes (QTR) 

58.89 65.37 60.11 55.85 59.17 60.88 58.38 57.78 56.40 64.95 55.22 

New charters................................................ 49 46 3 0 0 4 19 5 6 7 8 

Banks absorbed by mergers........................... 91 55 32 2 2 3 37 17 8 12 14 

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

PRIOR SECOND QUARTERS

 (The way it was...) 

1 1 0 0 0 0 0 1 0 0 0 

Return on assets (%).................................1997 1.24 1.27 1.37 1.24 1.21 1.14 1.28 1.25 1.50 1.27 1.32

 .................................................1995 1.16 1.19 1.23 1.27 1.07 1.04 1.18 1.19 1.42 1.25 1.23

 .................................................1993 

Net charge-offs to loans and leases(%)

1.17 1.21 1.19 1.33 1.04 1.03 1.29 1.31 1.49 1.26 1.04 

 .................................................1997 0.62 0.25 0.38 1.01 0.58 0.72 0.44 0.47 0.84 0.29 0.87

 .................................................1995 0.45 0.20 0.37 0.72 0.36 0.50 0.29 0.28 0.49 0.18 0.77

 .................................................1993 0.90 0.34 0.56 0.96 1.12 1.38 0.45 0.49 0.56 0.30 1.07 

INTERNATIONAL OPERATIONS’ CONTRIBUTION TO BANK 

1994-1998 

BANKS’ LENDING EXPOSURE TO FOREIGN BORROWERS, 

EARNINGS, 1994-1998 

Loans to Non-U.S. Borrowers,* % of Total Loans and Leases Earnings from International Operations, % of Net Income 

8.0 

16 

7.5 

12 

7.0 

8 

6.5 4 

6.0 0 

1994 1995 1996 1997 1998 1994 1995 1996 1997 1998 

* Includes leases and commercial and industrial loans to non-U.S. addressees 

loans to foreign governments, real estate loans in foreign offices, and loans to 

banks in foreign countries. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

June 30, 1998 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate........................... 1.11 1.34 1.05 1.07 1.13 1.15 1.10 1.24 0.97 1.23 0.94 

Construction and development........................... 1.31 1.20 1.20 1.44 1.32 0.94 1.19 2.04 1.18 1.39 0.97 

Commercial real estate.................................... 0.84 1.04 0.81 0.98 0.75 0.86 0.80 1.07 0.75 0.95 0.61 

Multifamily residential real estate........................ 0.80 0.69 0.66 0.85 0.84 0.66 0.82 1.09 0.56 0.55 0.81 

Home equity loans.......................................... 0.82 1.07 0.91 0.87 0.77 0.99 0.61 0.92 0.87 0.92 0.79 

Other 1-4 Family residential.............................. 1.30 1.67 1.26 1.12 1.35 1.32 1.31 1.30 1.10 1.48 1.31 

Commercial and industrial loans*........................... 0.82 1.60 1.43 1.31 0.51 0.50 0.72 1.20 1.86 1.31 0.69 

Loans to individuals.......................................... 2.24 2.33 1.95 2.32 2.26 2.59 2.08 2.12 2.22 1.74 1.98 

Credit card loans............................................. 2.51 3.56 2.87 2.47 2.51 2.59 2.77 2.18 2.57 2.18 2.22 

Other loans to individuals................................. 2.07 2.27 1.79 2.15 2.10 2.58 1.81 2.11 1.92 1.69 1.72 

All other loans and leases (including farm)............... 0.52 NA NA 1.15 0.48 0.54 0.34 1.01 0.57 0.37 0.24 

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

Percent of Loans Noncurrent** 

... 0.49 1.27 0.38 0.85 0.46 0.32 0.37 1.51 0.35 0.87 0.28 

All real estate loans.......................................... 0.96 0.91 0.75 0.89 1.07 1.30 0.85 0.79 0.67 0.95 0.98 

Construction and development........................... 1.00 0.79 0.79 0.91 1.20 2.00 0.86 0.84 0.96 0.83 0.92 

Commercial real estate.................................... 1.10 0.96 0.83 1.16 1.26 1.66 0.90 0.98 0.64 1.12 1.13 

Multifamily residential real estate........................ 0.84 0.62 0.74 0.81 0.93 1.00 0.77 0.82 0.65 0.43 0.92 

Home equity loans.......................................... 0.42 0.57 0.36 0.49 0.41 0.61 0.35 0.38 0.26 0.23 0.43 

Other 1-4 Family residential.............................. 0.88 0.80 0.70 0.77 0.99 1.02 0.88 0.73 0.56 0.83 0.98 

Commercial and industrial loans*........................... 0.94 1.46 1.28 0.90 0.80 0.99 0.69 0.92 1.37 1.27 0.94 

Loans to individuals.......................................... 1.39 0.90 0.76 1.45 1.55 2.19 0.93 0.86 1.11 0.65 1.16 

Credit card loans............................................. 2.02 2.15 1.84 1.90 2.12 2.32 1.68 1.63 1.73 1.75 1.82 

Other loans to individuals................................. 0.99 0.84 0.57 0.93 1.16 2.04 0.63 0.67 0.56 0.55 0.46 

All other loans and leases (including farm)............... 0.28 NA NA 0.49 0.25 0.30 0.19 0.38 0.32 0.25 0.23 

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

Percent of Loans Charged-off (net, YTD) 

... 0.40 1.56 0.62 0.73 0.35 0.29 0.39 0.46 0.22 0.72 0.47 

All real estate loans.......................................... 0.04 0.03 0.04 0.05 0.03 0.04 0.04 0.04 0.02 0.03 0.04 

Construction and development........................... 0.00 0.06 0.03 0.02 -0.04 -0.08 0.02 -0.02 0.08 0.01 -0.01 

Commercial real estate.................................... -0.02 0.03 0.03 0.03 -0.09 -0.13 0.01 0.02 -0.06 0.00 -0.02 

Multifamily residential real estate........................ 0.02 0.04 0.06 -0.03 0.02 0.02 0.04 -0.05 0.08 -0.01 0.04 

Home equity loans.......................................... 0.15 0.07 0.07 0.16 0.17 0.19 0.13 0.15 0.09 0.58 0.15 

Other 1-4 Family residential.............................. 0.06 0.04 0.04 0.07 0.07 0.08 0.05 0.05 0.04 0.04 0.06 

Commercial and industrial loans*........................... 0.32 0.28 0.36 0.20 0.32 0.35 0.19 0.27 0.37 0.34 0.44 

Loans to individuals.......................................... 2.79 0.69 1.46 3.68 2.75 3.41 1.99 1.62 2.94 1.32 4.28 

Credit card loans............................................. 5.47 3.63 5.49 6.10 5.02 5.26 5.08 4.67 5.26 4.75 6.81 

Other loans to individuals................................. 1.01 0.52 0.63 0.96 1.21 1.24 0.84 0.84 0.75 1.00 1.36 

All other loans and leases (including farm)............... 0.24 NA NA 0.28 0.26 0.27 0.17 0.35 0.17 0.09 0.21 

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

Loans Outstanding (in billions) 

... 0.04 0.79 0.33 0.23 0.01 -0.06 0.04 0.05 0.03 0.02 0.17 

All real estate loans.......................................... $1,284.6 $85.5 $277.5 $272.8 $648.8 $308.8 $361.8 $253.2 $102.2 $75.2 $183.4 

Construction and development........................... 95.7 6.0 25.1 23.6 41.1 10.4 32.6 18.7 8.3 9.3 16.4 

Commercial real estate.................................... 348.1 23.0 95.5 81.0 148.5 66.7 91.6 71.9 27.8 26.4 63.8 

Multifamily residential real estate........................ 42.2 1.8 9.2 11.6 19.6 11.3 9.5 8.6 3.3 2.2 7.3 

Home equity loans.......................................... 97.2 2.0 12.9 19.7 62.6 21.1 28.3 24.0 4.5 0.9 18.4 

Other 1-4 Family residential.............................. 643.9 41.8 124.0 133.1 345.0 172.7 194.5 122.9 48.9 33.4 71.5 

Commercial and industrial loans........................... 850.4 25.7 81.4 126.0 617.3 299.0 176.2 153.0 49.4 43.6 129.2 

Loans to individuals.......................................... 547.9 22.5 65.7 166.9 292.9 194.8 112.1 87.0 46.3 35.0 72.6 

Credit card loans............................................. 217.0 1.1 9.5 88.7 117.7 105.7 31.8 17.7 21.7 2.9 37.2 

Other loans to individuals................................. 330.9 21.4 56.2 78.1 175.2 89.1 80.4 69.3 24.6 32.1 35.4 

All other loans and leases (including farm)............... 413.2 20.7 25.7 40.6 326.2 158.8 73.4 59.7 33.1 15.7 72.6 

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

Memo: Other Real Estate Owned (in millions) 

... 32.8 0.2 1.0 2.7 29.0 9.8 7.4 3.9 1.8 1.6 8.3 

All other real estate owned................................. $3,530.4 $321.1 $789.0 $588.1 $1,832.2 $1,175.2 $846.3 $388.2 $190.6 $240.9 $689.1 

Construction and development........................... 346.0 38.6 143.6 70.0 93.8 65.2 127.6 30.4 31.8 17.0 74.0 

Commercial real estate.................................... 1,620.9 135.6 351.0 278.6 855.7 535.9 307.9 175.3 74.6 130.2 397.2 

Multifamily residential real estate........................ 138.4 8.9 28.1 26.4 75.0 84.7 20.3 10.2 5.6 3.0 14.5 

1-4 Family residential....................................... 1,117.7 109.0 237.8 205.9 565.1 269.6 381.6 164.6 55.0 68.2 178.7 

Farmland...................................................... 91.2 29.2 28.5 7.0 26.5 4.8 8.9 7.7 23.7 22.5 23.6 

Other real estate owned in foreign offices............ 216.3 0.0 0.0 0.2 216.1 215.1 0.1 0.0 0.0 0.0 1.1 

* Includes "All other loans" for institutions under $1 billion in asset size. N/A - Not Available 

** 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. 
SAVINGS INSTITUTION PERFORMANCE – SECOND QUARTER, 1998 

• Savings Institutions Earn A Record $2.8 Billion In The Second Quarter 

• Thrifts Register A Record Quarterly Return On Assets Of 1.09 Percent 

• Tax Expenses Decline Because Of A Large Tax Benefit At One Institution 

• Equity Capital Ratio Reaches 8.94 Percent, Its Highest Level Ever 

The thrift industry reported $2.8 billion in income for 

the second quarter of 1998, resulting in an average 

annualized return on assets (ROA) of 1.09 percent. 

These are the highest quarterly income and ROA 

ever reported. Over 94 percent of savings institutions were profitable, and 35 percent had an ROA of 

1 percent or better. Second-quarter earnings were 

$234 million higher than in the first quarter of 1998, 

primarily because of a tax benefit that one large institution recognized in the second quarter.1 Income tax 

expenses of $1.2 billion were $218 million lower than 

in the first quarter. Noninterest income increased 

$253 million, primarily because of higher fee income, 

while noninterest expenses rose by $199 million, 

mostly because of increases in expenses for salaries 

and premises. 

QUARTERLY NET INCOME, 

1994–1998 $ Billions 

Securities and Other Gains, Net 

3 Net Operating Income 2.8 

1.9 

2 1.8 1.6 

1.3 

1 

0 

1.7 

1.9 

2.2 

1.8 

2.52.6 

-0.0 

2.2 

2.42.4 

2.0 

2.3 

2.6 

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

1994 1995 1996 1997 1998 

Earnings continued to benefit from gains on sales of 

securities, which totaled $656 million this quarter, up 

slightly from $646 million in the first quarter. For institutions that file a Thrift Financial Report (TFR), these 

gains also included gains from the sale of assets held 

1California Federal Bank, a FSB in San Francisco, California, 

reported a deferred-tax benefit of $250 million resulting from a 

reduction in the valuation allowance related to its deferred-tax 

assets. 

for sale, such as mortgages originated and sold during the quarter. For several large thrifts, gains on 

mortgage sales were substantial. In the first half of 

this year gains on sales of securities and other 

assets, at $1.3 billion, were $766 million higher (144 

percent) than in the first half of 1997. These gains 

helped propel earnings to $5.4 billion for the six 

months ending in June, or 14 percent higher than in 

the same period of 1997. 

Although large thrifts enjoyed record profitability, 

smaller institutions (those with assets of $100 million 

or less) have not kept pace. The 726 small thrifts had 

an average annualized ROA of 0.74 percent for the 

second quarter and 0.77 percent for the first half of 

1998. This group includes 418 thrifts (58 percent) 

that are mutually owned, representing over half of all 

mutual savings institutions. Profitability of mutual 

thrifts, which had an average ROA of 0.92 percent, 

has also failed to keep pace with the larger stockowned institutions, which reported a record ROA of 

1.12 percent this quarter. Stock institutions hold over 

five times the assets of mutually owned thrifts. 

Interest expenses rose more than interest income 

during the second quarter; as a result, net interest 

income declined $19 million, and average net interest 

QUARTERLY ROA OF MUTUAL AND STOCK 

SAVINGS INSTITUTIONS, 1993–1998 

ROA (%) 

1.25 

1.00 

0.75 

0.50 

0.25 

0.00 

Stock 

Mutual 

1.12 

0.92 

1234123412341234123412 

1993 1994 1995 1996 1997 1998 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 Second Quarter 1998 
 

 

 

 

 

 

 

margins dropped 4 basis points. Interest income was COVERAGE RATIO AND RESERVE LEVELS,* 

$125 million higher than in the first quarter, while 

interest expense was $145 million higher. The 

increase in interest income did not keep pace with the 

rise in earning assets; therefore, average yields were 

down 3 basis points to 7.65 percent. The average 

cost of funding earning assets rose slightly (1 basis 

point) to 4.51 percent. 

QUARTERLY NET INTEREST MARGINS, 

1994–1998 

Net Interest Margin (%) 

4.0 

3.5 

3.0 

Assets < $100 Million 

Assets > $100 Million 

3.48% 

3.12% 

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

1994–1998 

$ Billions 

30 

Coverage Ratio (%) 

120 

25 100 

20 80 

15 60 

10 40 

5 1 2 3 4 1 2 3 4 

1994 1995 

1 2 3 4 1 2 3 4 

1996 1997 

1 2 

1998 

20 

*Loan-Loss reserves to Noncurrent Loans and Leases. 

large holding company caused shifts in several asset 

categories.2 Home mortgages declined by $5.1 billion during the quarter, while mortgage-backed securities (MBS) rose by $5.2 billion. Total investment 

securities rose by only $2.9 billion because nonmortgage securities backed by the U.S. government 

declined by $2 billion. Other assets grew by $4.1 bilLoan Reserves ($) Noncurrent Loans ($) 

Coverage Ratio (%) 

1994 1995 1996 1997 1998 

Asset-quality improvements were widespread during 

the second quarter, producing the most favorable 

asset-quality ratios that the industry has ever reported. The coverage ratio – loan-loss reserves to noncurrent loans – improved in all size groups and 

regions during the quarter. Loan-loss reserves 

increased slightly during the quarter, by $9.3 million, 

while noncurrent loans declined by $469 million to 

$6.8 billion. Thrifts now hold $1.03 in reserves for 

each dollar of noncurrent loans – the first time that 

reserves have exceeded noncurrent loans since 

1990, when all thrifts began to report consistent measures of noncurrent loans. Also for the first time since 

these data have been reported, noncurrent loans as 

a percentage of total loans fell below 1 percent (to 

0.96 percent). 

Provisions for loan losses exceeded net charge-offs 

by one-third during the quarter. Provisions increased 

$37 million to $461 million, while net charge-offs 

declined by $18 million to $345 million. The annualized net charge-off rate declined to 0.20 percent of 

total loans during the quarter, reaching a record low 

for the second consecutive quarter. 

Total assets were up by $4.5 billion during the quarter, while transfers between affiliated thrifts in one 

FDIC Quarterly Banking Profile 

lion because of a $2.4-billion increase in fed funds 

sold and repurchase agreements. 

On the other side of the balance sheet, deposits 

declined by $5.4 billion, while other borrowings 

increased by $9.3 billion and capital rose to record 

levels. Equity capital as a percentage of assets, at 

8.94 percent, was the highest ever recorded by the 

industry. Core capital, as measured by the leverage 

ratio, also hit its highest point – 8.11 percent – since 

its creation in 1990. Just one thrift remains undercapitalized by regulatory capital standards. 

Even though the thrift industry showed an increase in 

assets, the number of charters declined by 27 during 

the quarter, to 1,728. There were 9 new entrants to 

the industry, although one did not file a financial 

2World Savings and Loan Association, FSL of Oakland, 

California, showed a $3.6-billion decline in 1-4 family mortgages 

while World Savings Bank, FSB in Oakland, California, reported 

a decline of $1.4 billion in 1-4 family mortgages and a $5.0-billion increase in mortgage-backed securities. World Savings 

Bank, SSB in Austin, Texas, reported a large increase of $2.1 

billion in fed funds sold and repurchase agreements during the 

quarter. Golden West Financial owns all of these institutions 

and orchestrated the securitization of 1-4 family mortgages into 

mortgage-backed securities, which these institutions kept in 

their portfolios. 

Second Quarter 1998 9 FDIC-Insured Savings Institutions 
report: 5 de novo institutions started operations during the quarter; 3 credit unions, with $221 million in 

assets, and 1 commercial bank, with $151 million in 

assets, converted to savings institution charters. The 

industry lost 35 institutions during the quarter: 6 institutions, with $1.9 billion in assets, converted to commercial bank charters; another 19 savings 

institutions, with $10.6 billion, were merged into commercial banks; and within the industry, 10 institutions 

merged with other savings institutions. The loss of 

assets to commercial banks through mergers and 

charter transfers totaled $12.5 billion, while new 

entrants contributed less than half a billion dollars in 

assets to industry growth. Savings institutions purchased 7 commercial banks, with $1.2 billion in 

assets, and folded these banks into their existing 

operations. Excluding the purchase of these banks, 

the thrift industry grew internally by almost $16 billion. 

Without the internal growth the industry would have 

shown a decline in assets, attributable to the transfer 

of assets to the commercial bank industry. 

Other charter changes included 15 mutual-to-stock 

conversions of institutions, with $3.9 billion in assets. 

Two of the 3 credit unions that converted to thrift 

charters remained mutually owned. At midyear, the 

industry had 815 mutually owned institutions. 

As of September of 1998, no savings institutions had 

failed for over two years, which is the longest period 

without a failure since the late 1950s. The number of 

“problem” thrifts increased by 2 to 18 at midyear and 

assets of “problem” thrifts rose to $2.9 billion from 

$2.3 billion. 

NONCURRENT LOAN RATES,* 

JUNE 30, 1998 

AK AL 

AZ 

AR 

CA CO 

CT: 0.9 

DE: 0.9 

DC: 1.4 

FL 

GA 

HI 

ID 

IL IN 

IA 

KS KY 

LA 

ME 

MD: 1.9 

MA: 0.6 

MI 

MN 

MS 

MO 

MT 

NV NE 

NH: 0.7 

NJ: 3.9 

NM 

NY 

NC 

ND 

OH 

OK 

OR 

PA 

RI: 1.1 

SC 

SD 

TN 

TX 

UT 

VT: 1.3 

VA 

WA 

WV 

WI 

WY 

PR 

Northeast 

Southeast 

Central 

Southwest 

Midwest West 

0.5 0.9 

0.5 

0.4 

0.9 0.3 

0.7 

0.9 

2.1 

1.3 

0.3 

0.9 0.9 

0.3 0.9 

0.4 

0.9 

0.7 

0.4 

0.5 

1.0 

0.5 

0.5 

0.2 

0.6 

0.7 

1.2 

0.7 

0.5 

0.4 

0.8 

7.9 

0.6 

0.8 

0.6 

1.2 

1.2 

1.0 

0.4 

0.5 

0.9 

0.7 

N/A 

Greater than 1.5% 

Between .75% and 1.5% * Noncurrent loan rates represent the percentage of loans that Less than .75% are past due 90 days or more or in nonaccrual status. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Second Quarter 1998 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

1998** 1997** 1997 1996 1995 1994 1993 

Return on assets (%)............................................. 1.06 0.94 0.93 0.70 0.77 0.66 0.71 

Return on equity (%)............................................. 11.96 11.21 10.84 8.40 9.40 8.28 9.32 

Core capital (leverage) ratio (%).............................. 8.11 7.86 7.95 7.76 7.80 7.65 7.45 

Noncurrent assets plus 

other real estate owned to assets (%) .................. 0.82 1.02 0.95 1.09 1.20 1.38 2.10 

Net charge-offs to loans (%).................................... 0.20 0.28 0.25 0.32 0.34 0.51 0.65 

Asset growth rate (%)............................................. 1.58 0.54 -0.21 0.25 1.70 0.77 -2.85 

Net interest margin................................................ 3.16 3.26 3.23 3.22 3.09 3.34 3.51 

Net operating income growth (%).............................. 3.14 -8.18 20.07 -13.99 13.81 22.24 21.16 

Number of institutions reporting.............................. 1,728 1,851 1,779 1,924 2,030 2,152 2,262 

Percentage of unprofitable institutions (%).................. 4.80 3.51 4.10 12.01 5.86 6.97 5.88 

Number of problem institutions................................. 18 29 21 35 49 71 146 

Assets of problem institutions (in billions).................. $3 $3 $2 $7 $14 $39 $92 

Number of failed/assisted institutions........................ 0 0 0 1 2 4 8 

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

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

(dollar figures in millions) 

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

Preliminary 

2nd Quarter 1st Quarter 2nd Quarter %Change 

1998 1998 1997 97:2-98:2 

... 1,728 1,755 1,851 -6.6 

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

CONDITION DATA

247,412 243,501 247,902 -0.2 

 Total assets..................................................................... $1,044,797 $1,040,275 $1,028,589 1.6

 Loans secured by real estate............................................. 632,256 637,116 629,297 0.5 

1-4 Family Residential................................................... 508,038 513,134 503,096 1.0 

Multifamily residential property.......................................... 56,709 57,055 58,236 -2.6 

Commercial real estate................................................... 46,699 46,657 48,887 -4.5 

Construction, Development, and land................................. 20,810 20,269 19,079 9.1

 Commercial & industrial loans.......................................... 17,768 17,399 15,297 16.2

 Loans to individuals......................................................... 48,851 47,591 46,779 4.4

 Other loans & leases...................................................... 3,063 2,997 2,417 26.7

 Less: Unearned income & contra accounts***..................... 182 206 238 -23.7

 Total loans & leases......................................................... 701,756 704,897 693,553 1.2

 Less: Reserve for losses................................................... 6,984 6,975 6,849 2.0

 Net loans and leases......................................................... 694,772 697,922 686,704 1.2

 Securities........................................................................ 252,042 249,118 258,108 -2.4

 Other real estate owned................................................... 1,765 1,992 2,241 -21.2

 Goodwill and other intangibles............................................. 12,688 11,858 10,432 21.6

 All other assets............................................................... 83,530 79,385 71,104 17.5 

Total liabilities and capital................................................... 1,044,797 1,040,275 1,028,589 1.6

 Deposits........................................................................ 702,607 707,980 718,631 -2.2

 Other borrowed funds...................................................... 230,674 221,360 207,381 11.2

 Subordinated debt............................................................ 2,930 2,735 2,474 18.4

 All other liabilities............................................................ 15,196 16,718 12,329 23.3

 Equity capital.................................................................. 93,391 91,481 87,773 6.4 

Loans and leases 30-89 days past due................................. 7,120 7,661 7,919 -10.1 

Noncurrent loans and leases................................................ 6,754 7,223 8,235 -18.0 

Restructured loans and leases............................................. 2,888 3,218 3,999 -27.8 

Direct and indirect investments in real estate........................... 619 638 578 7.2 

Mortgage-backed securities................................................ 187,722 182,554 190,631 -1.5 

Earning assets.................................................................. 973,672 971,690 964,299 1.0 

FHLB Advances (TFR Filers only).......................................... 118,544 116,703 105,665 12.2 

Unused loan commitments................................................... 147,686 172,891 108,325 36.3 

INCOME DATA 

Total interest income.........................................

Total interest expense......................................... 

 Net interest income.......................................... 

Provision for loan losses***................................. 

Total noninterest income.................................... 

Total noninterest expense.................................... 

Securities gains (losses)....................................

Applicable income taxes..................................... 

Extraordinary gains, net....................................... 

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

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

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

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

Preliminary Preliminary 

First Half First Half 2nd Quarter 2nd Quarter %Change 

1998 1997 %Change 1998 1997 97:2-98:2 

... $36,434 $36,207 0.6 $18,452 $18,510 -0.3 

21,432 20,944 2.3 10,886 10,778 1.0

15,002 15,263 -1.7 7,566 7,732 -2.1 

864 1,181 -26.8 461 604 -23.6 

4,086 3,580 14.1 2,185 1,853 17.9 

11,629 10,891 6.8 5,968 5,551 7.5 

... 1,299 533 143.6 656 296 121.5 

2,514 2,599 -3.3 1,159 1,321 -12.3 

-8 0 N/M 0 0 N/M

... 5,371 4,704 14.2 2,818 2,405 17.2 

... 697 946 -26.3 345 507 -31.9 

2,633 2,310 14.0 1,236 1,079 14.6

4,452 4,317 3.1 2,361 2,186 8.0 

* Data between 1993 and 1995 do not include Resolution Trust Corporation conservatorships. Excludes on self-liquidating institution. N/M - Not Meaningful 

*** For TFR filers, includes only loan and lease loss provisions. 
TABLE III-B. First Half 1998, FDIC-Insured Savings Institutions 

FIRST HALF Preliminary 

(The way it is...) 

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

All 

Instituitions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,728 726 848 119 35 673 239 448 127 120 121 

Total assets(in billions).................................... $1,044.8 $37.8 $247.8 $231.0 $528.1 $348.0 $66.0 $171.1 $33.7 $64.2 $361.8 

Total deposits(in billions).................................... 702.6 30.9 192.8 156.8 322.2 256.0 47.7 123.0 24.4 40.6 210.9 

Net income(in millions)....................................... 5,370.6 142.4 1,215.6 1,095.3 2,917.2 1,702.0 268.0 826.2 155.1 392.7 2,026.5 

% of unprofitable institutions.............................. 4.8 8.1 1.9 5.9 2.9 4.0 6.3 2.9 6.3 9.2 7.4 

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

Performance ratios (%) 

55.2 44.1 60.6 73.1 91.4 54.8 58.6 50.7 48.8 54.2 74.4 

Yield on earning assets.................................... 7.67 7.76 7.70 7.76 7.61 7.57 7.95 7.70 7.68 7.88 7.66 

Cost of funding earning assets........................... 4.51 4.25 4.27 4.46 4.67 4.17 4.54 4.65 4.70 4.68 4.72 

Net interest margin.......................................... 3.16 3.51 3.43 3.29 2.94 3.40 3.41 3.05 2.98 3.20 2.94 

Noninterest income to earning assets.................. 0.86 1.18 0.67 1.03 0.85 0.67 1.36 1.05 0.82 1.32 0.79 

Noninterest expense to earning assets.................. 2.45 3.43 2.63 2.75 2.16 2.50 3.41 2.60 2.29 2.92 2.08 

Loan loss provision to assets*........................... 0.17 0.10 0.12 0.32 0.14 0.13 0.28 0.26 0.17 0.33 0.12 

Net operating income to assets........................... 0.87 0.66 0.82 0.75 0.97 0.85 0.62 0.70 0.81 0.88 1.03 

Return on assets............................................. 1.06 0.77 1.00 0.98 1.13 1.01 0.84 0.97 0.93 1.24 1.16 

Return on equity............................................. 11.96 6.36 9.45 10.81 14.82 10.29 8.40 10.50 9.77 14.44 15.57 

Net charge-offs to loans and leases..................... 0.20 0.09 0.10 0.31 0.22 0.17 0.39 0.20 0.17 0.42 0.17 

Credit loss provision to net charge-offs.................. 123.99 159.84 175.60 162.58 90.40 120.75 107.17 183.77 142.86 118.71 99.95 

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

Condition Ratios (%) 

58.94 72.25 63.36 61.95 53.95 59.54 70.26 60.35 59.11 63.70 53.91 

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

Loss allowance to: 

93.19 94.37 94.57 92.82 92.62 93.61 92.39 93.01 94.54 92.08 93.10 

Loans and leases.......................................... 1.00 0.76 0.88 1.22 0.97 1.08 1.03 0.82 0.67 0.94 1.04 

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

Noncurrent assets plus 

103.41 78.39 110.73 86.27 113.82 84.58 138.69 109.65 107.55 90.28 121.20 

other real estate owned to assets..................... 0.82 0.79 0.70 1.13 0.73 0.93 0.73 0.65 0.57 1.02 0.79 

Noncurrent RE loans to RE loans........................ 0.97 0.95 0.78 1.44 0.87 1.31 0.66 0.72 0.54 1.04 0.88 

Equity capital ratio.......................................... 8.94 12.05 10.65 9.17 7.81 9.88 10.13 9.35 9.51 8.74 7.61 

Core capital (leverage) ratio.............................. 8.11 11.68 10.14 8.50 6.72 8.95 9.59 8.36 9.08 8.53 6.74 

Gross real estate assets to gross assets............... 78.17 69.49 72.63 73.65 83.38 73.05 72.15 76.78 75.89 67.49 86.96 

Gross 1-4 family mortgages to gross assets......... 48.29 50.82 47.74 39.89 52.05 43.05 45.97 53.75 54.02 36.18 52.80 

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

Structural Changes (YTD) 

98.88 81.69 85.33 92.70 111.65 82.02 92.17 99.19 98.85 104.43 119.64 

New Charters................................................ 8 8 0 0 0 1 0 1 2 3 1 

Thrifts absorbed by mergers........................... 55 18 25 11 1 16 10 13 8 3 5 

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

PRIOR FIRST HALVES**

 (The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Number of institutions...............................1997 1,851 807 887 121 36 704 271 477 139 126 134

 ................................................1995 2,082 946 975 126 35 767 319 534 157 138 167

 ................................................1993 2,314 1,073 1,068 146 27 838 387 573 171 150 195 

Total assets (in billions)...........................1997 $1,028.6 $42.1 $263.4 $246.3 $476.8 $341.5 $65.8 $175.9 $41.8 $64.7 $338.9

 ................................................1995 1,017.2 48.3 282.0 267.0 419.9 334.6 77.4 167.6 52.8 74.1 310.7

 ................................................1993 1,003.9 54.3 309.0 307.5 333.1 330.7 92.0 150.0 50.6 57.8 322.8 

Return on assets (%).............................1997 0.94 0.80 0.96 1.12 0.85 0.99 0.91 1.00 0.84 1.11 0.85

 ................................................1995 0.72 0.64 0.68 0.77 0.73 0.87 0.81 0.89 0.95 0.81 0.39

 ................................................1993 

Net charge-offs to loans and leases(%) 

0.84 1.08 1.00 0.97 0.53 0.91 0.81 1.08 1.03 1.91 0.43 

 ................................................1997 0.28 0.10 0.13 0.36 0.35 0.31 0.46 0.22 0.05 0.40 0.26

 ................................................1995 0.33 0.18 0.16 0.36 0.46 0.38 0.13 0.09 0.18 0.18 0.52

 ................................................1993 

Noncurrent assets plus*** 

0.67 0.16 0.28 0.58 1.19 0.71 0.30 0.13 0.14 0.34 1.07 

OREO to assets (%)..............................1997 1.02 0.89 0.90 1.35 0.92 1.20 0.93 0.64 0.66 1.01 1.09

 ...............................................1995 1.26 1.02 1.11 1.45 1.27 1.66 0.99 0.50 0.59 1.07 1.46

 ................................................1993 2.63 1.73 2.13 2.84 3.05 3.32 2.10 0.82 1.02 3.37 3.05 

Equity capital ratio (%)..............................1997 8.53 11.65 10.08 8.52 7.41 9.29 9.64 9.27 8.73 8.30 7.19

 ................................................1995 8.18 10.40 9.43 8.23 7.05 8.84 8.76 8.93 8.15 7.13 7.18

 ................................................1993 7.56 8.99 8.27 7.46 6.75 7.76 7.93 8.26 7.55 6.81 7.05 

* For TFR filers, includes only loan and lease loss provisions. 

** Data between 1993 and 1995 do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 

*** Beginning with June 1996, TFR filers report noncurrent loans net of specific reserves. Accordingly, specific reserves have been subtracted from loan-loss reserves, beginning

 with June 1996, to make the ration more closely comparable to prior periods. 
TABLE IV-B. Second Quarter 1998, FDIC-Insured Savings Institutions 

SECOND QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- South 

west west West 

1,728 726 848 119 35 673 239 448 127 120 121 

Total assets (in billions).................................... $1,044.8 $37.8 $247.8 $231.0 $528.1 $348.0 $66.0 $171.1 $33.7 $64.2 $361.8 

Total deposits (in billions)................................. 702.6 30.9 192.8 156.8 322.2 256.0 47.7 123.0 24.4 40.6 210.9 

Net income (in millions).................................... 2,817.6 69.1 597.3 530.3 1,620.9 860.7 128.7 414.8 72.4 177.5 1,163.4 

% of unprofitable institutions.............................. 5.7 9.2 2.8 5.9 2.9 5.2 7.5 3.6 7.9 9.2 7.4 

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

Performance Ratios (annualized, %) 

50.9 42.6 54.7 65.5 82.9 52.0 53.1 48.0 38.6 47.5 67.8 

Yield on earning assets.................................... 7.65 7.74 7.69 7.74 7.58 7.54 7.91 7.68 7.67 7.99 7.63 

Cost of funding earning assets........................... 4.51 4.26 4.28 4.45 4.67 4.17 4.56 4.63 4.70 4.73 4.73 

Net interest margin.......................................... 3.14 3.48 3.41 3.29 2.91 3.37 3.35 3.05 2.97 3.25 2.91 

Noninterest income to earning assets.................. 0.91 1.25 0.64 1.15 0.90 0.70 1.35 1.16 0.75 1.33 0.84 

Noninterest expense to earning assets.................. 2.47 3.52 2.60 2.85 2.18 2.52 3.41 2.71 2.27 2.79 2.11 

Credit loss provision to assets*........................... 0.18 0.09 0.12 0.34 0.14 0.12 0.30 0.30 0.18 0.29 0.13 

Net operating income to assets........................... 0.91 0.63 0.81 0.76 1.05 0.86 0.57 0.68 0.73 0.97 1.15 

Return on assets............................................. 1.09 0.74 0.97 0.93 1.24 1.00 0.79 0.97 0.86 1.13 1.30 

Return on equity............................................. 12.29 6.11 9.17 10.23 16.05 10.20 7.86 10.47 9.06 12.87 17.33 

Net charge-offs to loans and leases..................... 0.20 0.07 0.11 0.30 0.21 0.19 0.40 0.21 0.16 0.41 0.13 

Loan loss provision to net change-offs.................. 133.74 194.35 168.05 177.64 98.31 107.24 110.91 198.25 157.79 104.40 139.68 

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

Structural Changes (QTR) 

59.24 73.48 63.50 62.40 54.20 59.97 71.44 61.48 59.87 59.57 54.41 

New charters................................................ 5 5 0 0 0 1 0 0 1 2 1 

Thrifts absorbed by mergers........................... 29 10 13 6 0 8 6 9 3 1 2 

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

PRIOR SECOND QUARTERS**

 (The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%)................................1997 0.95 0.83 0.97 1.15 0.84 1.00 0.92 1.09 0.68 1.16 0.82

 .................................................1995 0.76 0.56 0.76 0.81 0.74 0.87 0.79 0.96 0.90 0.86 0.47

 .................................................1993 

Net charge-offs to loans and leases(%)

0.70 1.13 0.96 0.85 0.26 0.78 0.89 1.14 0.97 1.44 0.19 

 .................................................1997 0.30 0.12 0.16 0.33 0.37 0.35 0.46 0.19 0.17 0.37 0.28

 .................................................1995 0.36 0.27 0.18 0.39 0.48 0.40 0.19 0.09 0.11 0.19 0.59

 .................................................1993 0.77 0.16 0.31 0.50 1.47 0.74 0.19 0.12 0.15 0.21 1.32 

* For TFR filers, includes only loan and lease loss provisions. 

** Data between 1993 and 1995 does not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 

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 
TABLE V-B. Loan Performance, FDIC-Insured Savings Institutions 

June 30, 1998 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate........................... 0.94 1.69 1.07 0.90 0.85 0.93 0.98 0.95 1.31 1.16 0.88 

Construction, development, and land.................. 1.34 1.61 1.68 1.29 0.98 1.04 1.32 2.19 1.87 0.83 1.27 

Commercial real estate.................................... 0.88 1.24 1.03 1.08 0.49 0.96 0.97 1.15 1.80 1.00 0.44 

Multifamily residential real estate........................ 0.41 1.25 0.61 0.38 0.35 0.32 1.16 0.59 0.97 0.46 0.37 

Home equity loans.......................................... 1.00 1.79 1.08 0.96 0.93 0.98 0.97 0.92 1.27 1.32 1.00 

Other 1-4 Family residential.............................. 0.65 0.64 0.84 0.62 0.53 0.93 0.44 0.54 0.56 0.00 0.40 

Commercial and industrial loans........................... 1.30 2.16 1.84 1.46 0.60 1.33 1.68 1.89 1.32 0.99 0.82 

Loans to individuals.......................................... 1.90 2.05 1.64 2.33 1.77 2.00 2.70 1.76 1.92 1.30 2.05 

Credit card loans............................................. 1.92 1.16 3.33 2.50 1.52 1.31 3.66 2.52 4.31 0.66 3.44 

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

Percent of Loans Noncurrent* 

1.90 2.08 1.51 2.28 1.87 2.14 2.26 1.56 1.82 1.85 1.83 

All real estate loans.......................................... 0.97 0.95 0.78 1.44 0.87 1.31 0.66 0.72 0.54 1.04 0.88 

Construction, development, and land.................. 1.05 1.11 1.17 1.29 0.75 1.40 0.96 1.52 0.98 0.35 1.06 

Commercial real estate.................................... 1.49 1.22 1.13 2.03 1.41 1.93 0.84 0.96 0.79 1.64 1.20 

Multifamily residential real estate........................ 0.79 0.84 0.79 1.33 0.52 1.22 0.86 0.96 0.24 3.44 0.42 

Home equity loans.......................................... 0.36 0.29 0.49 0.32 0.31 0.49 0.15 0.35 0.23 0.01 0.29 

Other 1-4 Family residential.............................. 0.95 0.93 0.72 1.42 0.90 1.27 0.63 0.67 0.52 0.88 0.94 

Commercial and industrial loans........................... 1.30 1.65 1.39 1.42 1.03 1.31 0.95 1.76 1.89 1.86 0.71 

Loans to individuals.......................................... 0.83 0.99 0.72 1.35 0.59 0.78 1.34 0.86 0.98 0.88 0.55 

Credit card loans............................................. 1.32 0.81 1.68 1.76 1.09 1.24 2.27 1.92 1.10 0.55 1.52 

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

Percent of Loans Charged-off (net, YTD) 

0.69 0.99 0.64 1.23 0.38 0.68 0.92 0.59 0.98 1.17 0.40 

All real estate loans.......................................... 0.08 0.04 0.05 0.09 0.09 0.10 0.02 0.04 0.04 0.03 0.10 

Construction, development, and land.................. 0.07 0.16 0.07 0.09 0.06 0.15 0.03 0.10 -0.21 0.00 0.14 

Commercial real estate.................................... 0.05 0.10 0.10 0.11 -0.06 0.06 0.06 0.06 0.25 0.04 0.02 

Multifamily residential real estate........................ 0.06 0.18 -0.01 0.07 0.08 0.04 -0.03 0.00 -0.03 0.02 0.09 

Home equity loans.......................................... 0.22 0.01 0.13 0.22 0.28 0.15 0.05 0.19 0.50 0.27 0.39 

Other 1-4 Family residential.............................. 0.08 0.03 0.04 0.08 0.10 0.11 0.02 0.03 0.03 0.04 0.10 

Commercial and industrial loans........................... 0.30 0.37 0.33 0.37 0.20 0.10 0.44 0.17 1.82 0.66 0.34 

Loans to individuals.......................................... 1.81 0.59 0.77 2.54 1.95 1.20 3.31 1.80 0.90 2.02 2.01 

Credit card loans............................................. 4.07 3.08 3.50 4.87 3.83 2.71 7.70 6.47 4.53 1.79 4.55 

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

Loans Outstanding (in billions) 

1.13 0.51 0.53 1.85 1.10 0.88 1.10 0.58 0.76 2.24 1.63 

All real estate loans.......................................... $632.3 $23.0 $151.1 $127.3 $330.8 $189.7 $38.3 $108.3 $21.4 $32.8 $241.7 

Construction, development, and land.................. 20.8 1.1 7.3 5.4 7.0 4.4 3.4 3.9 1.0 4.2 4.0 

Commercial real estate.................................... 46.5 1.9 15.8 13.6 15.1 20.8 3.6 5.6 1.4 3.1 12.0 

Multifamily residential real estate........................ 56.7 0.6 8.8 15.4 31.8 13.7 0.9 6.3 0.7 2.0 33.1 

Home equity loans.......................................... 17.2 0.5 5.2 4.0 7.4 6.8 1.5 4.5 0.5 0.3 3.6 

Other 1-4 Family residential.............................. 490.9 18.8 113.8 88.9 269.4 144.1 29.0 88.0 17.8 23.0 188.9 

Commercial and industrial loans........................... 17.8 0.7 4.5 5.7 6.9 7.8 1.4 2.5 0.7 1.8 3.6 

Loans to individuals.......................................... 48.9 1.7 9.9 12.9 24.3 13.7 4.6 11.4 2.2 7.9 9.1 

Credit card loans............................................. 11.0 0.1 0.7 3.1 7.1 2.3 1.4 2.3 0.1 3.7 1.3 

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

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

37.8 1.7 9.2 9.8 17.1 11.3 3.1 9.1 2.1 4.3 7.9 

All other real estate owned................................. $1,765.0 $53.7 $426.1 $511.4 $773.8 $508.9 $151.2 $192.2 $41.8 $208.6 $662.3 

Construction, development, and land.................. 207.6 6.5 43.0 47.9 110.2 45.7 102.8 14.4 12.0 4.7 28.1 

Commercial real estate.................................... 319.2 8.2 111.9 124.6 74.5 121.5 21.7 46.6 10.5 43.1 75.9 

Multifamily residential real estate........................ 267.1 2.4 90.9 101.2 72.6 62.8 1.4 6.6 2.4 106.1 87.7 

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

Troubled Real Estate Asset Rates*** 

(% of total RE assets) 

1,024.0 37.5 191.6 254.3 540.6 294.4 45.3 127.8 20.6 56.2 479.7 

All real estate loans.......................................... 1.24 1.18 1.06 1.83 1.10 1.58 1.05 0.90 0.74 1.66 1.15 

Construction, development, and land.................. 2.03 1.70 1.74 2.16 2.29 2.42 3.90 1.88 2.19 0.47 1.75 

Commercial real estate.................................... 2.16 1.63 1.82 2.95 1.89 2.51 1.44 1.78 1.52 3.00 1.81 

Multifamily residential real estate........................ 1.25 1.22 1.80 1.98 0.74 1.67 1.02 1.06 0.59 8.26 0.69 

1-4 family residential....................................... 1.13 1.10 0.86 1.64 1.08 1.43 0.75 0.80 0.63 1.10 1.18 

* Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in accrual status. 

** TFR filers report "All other real estate owned" net of valuation allowances, while individual categories of OREO are reported gross. 

*** Noncurrent real estate loans plus other real estate owned as a percent of total real estate loans plus OREO. 
ALL FDIC-INSURED INSTITUTIONS 

• Despite Rise In Total Deposits, Insured Deposits Fall Slightly 

• Reserve Ratios Stand At 1.40 Percent For The BIF And 1.38 Percent For The SAIF 

• One Insured Institution Fails In The Second Quarter 

For the nation’s 10,712 FDIC-insured commercial banks 

and savings institutions, asset growth slowed somewhat 

in the second quarter. Total assets increased by 1.2 percent from March 31 to June 30, the lowest growth rate 

in five quarters. Assets grew by an average of 2.1 percent in the preceding four quarters. A significant portion 

of the one-quarter $76-billion gain in total assets was 

funded by growth in equity capital, which increased by 

$18 billion. Reliance on deposits in general – and 

insured deposits in particular – declined from the first 

quarter of 1998 to the second quarter. Compared to 

growth of 1.2 percent in total assets, total deposits 

increased only 0.8 percent, as gains in foreign-office 

deposits (up $20 billion) and large, uninsured domestic 

deposits (up $21 billion) offset an $8.2-billion decline in 

insured deposits. Deposits insured by the Bank 

Insurance Fund (BIF) fell by $4.4 billion, and those 

insured by the Savings Association Insurance Fund 

(SAIF) fell by $3.8 billion.1 

One BIF-member commercial bank, with total assets of 

$38 million, failed during the second quarter, resulting in 

an estimated insurance loss of $3 million. This was the 

only insured-institution failure in the first half of 1998, 

and the second quarter was the seventh consecutive 

quarter without a failure of a SAIF member. 

With low insurance losses and minimal receivership 

activity, both insurance funds continued to grow during 

the second quarter. Based on unaudited financial 

results, second-quarter investment earnings totaled 

$419 million for the BIF and $140 million for the SAIF, 

compared to assessment revenues of just $3 million 

and $7 million, respectively. The BIF ended the second 

quarter with a balance of $28.9 billion, up from $28.6 billion on March 31. This growth, when combined with the 

decline in BIF-insured deposits described above, resulted in an increase in the ratio of the fund to estimated 

insured deposits. The BIF reserve ratio was 1.40 percent on June 30, compared to 1.38 percent (amended) 

on March 31. 

The balance of the SAIF rose from $9.5 billion on March 

31 to $9.6 billion on June 30. This increase, and the 

decline in SAIF-insured deposits, caused the fund’s 

reserve ratio to rise from 1.35 percent (amended) to 

1.38 percent. Current law requires that on January 1, 

1999, the amount in the SAIF in excess of 1.25 percent 

is to be placed in a special reserve. This amount, which 

currently is $893 million, is to be excluded from the 

reserve ratio calculation and available for insurance purposes only under limited conditions. 

1Figures for March 31, 1998, reflect the correction of an amount 

previously disputed by an insured institution. As a result, about 

$3 billion was shifted from BIF insurance to SAIF insurance. This 

also affected the BIF and SAIF reserve ratios previously reported for March 31. See Table III-C. 

INTERSTATE BRANCHES AS A PERCENT OF TOTAL OFFICES, JUNE 30, 1998 

FDIC Quarterly Banking Profile 

Second Quarter 1998 15 All FDIC-Insured Institutions 

AL 

3.4 

AK

 22.9 

AZ

 44.7 AR

 11.7 

CA

 2.2 

CO

 21.9 

FL

 44.8 

GA

 39.1 

HI

 0.5 

ID

 80.6 

IL

 9.4 

IN

 12.1 

IA

 9.3 

KS

 16.9 

KY 

12.8 

LA

 10.5 

ME 

16.3 

MI 

8.9 

MN

 0.1 

MS

 16.3 

MO

 20.0 

MT

 0.6 

NE

NV 7.2 

 53.7 

NM

 23.7 

NY

 18.2 

NC 

3.0 

ND

 8.6 

OH

 3.1 

OK

 9.4 

OR

 70.5 

PA 

12.4 

SC 

31.6 

SD

 4.9 

TN 

8.1 

TX

 10.6 

UT

 21.4 

VA 

34.0 

WA

 49.5 

WV

 10.9 

WI 

WY 1.0 

 13.8 

PR

Greater than 30% 3.3 

Between 15% and 30% 

Between 1% and 15% 

Less than 1% 

VT: 15.5 

NH: 15.0 

MA: 14.5 

RI: 23.1 

CT: 35.0 

NJ: 37.3 

DE: 18.5 

MD: 35.8 

DC: 90.2 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

1998** 1997** 1997 1996 1995 1994 1993 

Number of Institutions reporting.............................. 10,712 11,160 10,922 11,452 11,970 12,603 13,220 

Total assets......................................................... $ 6,227,556 $5,799,956 $6,041,127 $5,606,610 $5,338,419 $5,019,085 $4,707,056 

Total deposits...................................................... 4,209,181 3,998,484 4,125,867 3,925,059 3,769,481 3,611,619 3,528,486 

Number of problem institutions................................. 82 103 92 117 193 318 572 

Assets of problem institutions (in billions).................. $8 $8 $6 $12 $31 $73 $334 

Number of failed/assisted institutions........................ 1 0 1 6 8 15 50 

Assets of failed/assisted institutions (in billions)............ $0.04 $0.00 $0.03 $0.22 $1.21 $1.57 $9.67 

** As of June 30. 

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

(dollar figures in millions) 

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

Preliminary 

2nd Quarter 1st Quarter 2nd Quarter %Change 

1998 1998 1997 97:2-98:2 

 10,712 10,779 11,160 -4.0 

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

CONDITION DATA 

1,841,285 1,800,757 1,761,813 4.5 

Total assets..................................................................... $6,227,556 $6,151,283 $5,799,956 7.4

 Loans secured by real estate............................................. 1,916,820 1,909,893 1,824,004 5.1 

1-4 Family residential...................................................... 1,249,089 1,250,038 1,193,556 4.7 

Home equity loans......................................................... 114,352 114,009 109,518 4.4 

Multifamily residential property.......................................... 98,888 99,275 97,939 1.0 

Commercial real estate................................................... 394,652 392,887 376,046 4.9 

Construction, development, and land................................. 116,502 111,057 101,542 14.7 

Other real estate loans................................................... 57,688 56,634 54,921 5.0 

Commercial & Industrial loans 868,156 837,442 770,467 12.7

 Loans to individuals......................................................... 596,731 589,835 604,406 -1.3

 Credit cards & related plans.......................................... 228,000 222,345 236,519 -3.6

 Other loans & leases...................................................... 416,221 395,766 365,806 13.8

 Less: Unearned income & contra accounts........................ 4,508 4,583 5,383 -16.3

 Total loans & leases......................................................... 3,793,420 3,728,353 3,559,301 6.6

 Less: Reserve for losses................................................... 63,363 62,176 61,371 3.2 

Net loans and leases......................................................... 3,730,058 3,666,177 3,497,930 6.6 

Securities........................................................................ 1,146,538 1,154,530 1,078,566 6.3 

Other real estate owned...................................................... 5,295 5,726 6,618 -20.0 

Goodwill and other intangibles............................................. 88,884 78,067 67,203 32.3 

All other assets.................................................................. 1,256,781 1,246,783 1,149,638 9.3 

Total liabilities and capital................................................... 6,227,556 6,151,283 5,799,956 7.4

 Deposits....................................................................... 4,209,181 4,175,623 3,998,484 5.3

 Other borrowed funds...................................................... 1,103,726 1,077,966 995,847 10.8

 Subordinated debt............................................................ 70,213 68,912 56,759 23.7

 All other liabilities............................................................ 305,071 307,376 258,233 18.1

 Equity capital.................................................................. 539,365 521,404 490,633 9.9 

Loans and leases 30-89 days past due................................. 42,831 46,538 43,074 -0.6 

Noncurrent loans and leases................................................ 35,838 36,720 36,814 -2.7 

Restructured loans and leases............................................. 4,848 5,322 7,395 -34.4 

Direct and indirect investments in real estate........................... 1,154 1,187 1,229 -6.1 

Mortgage-backed securities................................................ 580,705 584,957 536,368 8.3 

Earning assets.................................................................. 5,432,635 5,386,773 5,093,729 6.7 

Unused loan commitments................................................... 3,625,774 3,453,730 2,943,021 23.2 

INCOME DATA 

Total interest income............................................ 

Total interest expense......................................... 

 Net interest income.......................................... 

Provision for credit losses.................................... 

Total noninterest income.................................... 

Total noninterest expense.................................... 

Securities gains (losses)....................................... 

Applicable income taxes..................................... 

Extraordinary gains, net....................................... 

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

Preliminary Preliminary 

First Half First Half 2nd Quarter 2nd Quarter %Change 

1998 1997 %Change 1998 1997 97:2-98:2 

$215,044 $201,154 6.9 $108,432 $102,442 5.8 

110,203 100,202 10.0 55,363 51,232 8.1

104,841 100,951 3.9 53,069 51,210 3.6 

11,100 10,503 5.7 5,727 5,634 1.6 

63,896 53,502 19.4 32,836 27,129 21.0 

103,735 92,762 11.8 52,360 46,972 11.5 

2,670 1,246 114.3 1,231 594 107.1 

19,681 18,625 5.7 10,091 9,312 8.4 

516 35 N/M -13 28 N/M

37,407 33,844 10.5 18,945 17,043 11.2 

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

 

 

 

0 

TABLE III-C. Selected Insurance Fund Indicators 

(dollar figures in millions) Preliminary 

2nd Quarter 1st Quarter 2nd Quarter %Change 

1998 1998* 1997 97:2-98:2 

Bank Insurance Fund** 

Reserve ratio (%)***............................................................... 1.40 1.38 1.35 3.2 

Fund balance (unaudited)......................................................... $28,931 $28,559 $27,389 5.6 

Estimated insured deposits...................................................... 2,071,753 2,076,128 2,023,478 2.4 

SAIF-member Oakars............................................................ 32,386 31,823 25,202 28.5 

BIF-members........................................................................ 2,039,367 2,044,305 1,998,276 2.1 

Assessment base..................................................................... 2,839,278 2,824,185 2,680,245 5.9 

SAIF-member Oakars............................................................ 34,160 33,465 27,198 25.6 

BIF-members........................................................................ 2,805,117 2,790,720 2,653,048 5.7 

Savings Association Insurance Fund 

Reserve ratio (%)***............................................................... 1.38 1.35 1.32 4.0 

Fund balance (unaudited)......................................................... $9,610 $9,484 $9,134 5.2 

Estimated insured deposits...................................................... 697,386 701,212 689,487 1.1 

BIF-members Oakars............................................................ 268,571 267,796 232,061 15.7 

SAIF-member Sassers......................................................... 60,730 60,743 57,150 6.3 

Other SAIF members............................................................ 368,085 372,673 400,277 -8.0 

Assessment base..................................................................... 732,182 734,589 716,548 2.2 

BIF-member Oakars............................................................... 269,078 268,372 232,548 15.7 

SAIF-member Sassers......................................................... 66,508 66,048 62,211 6.9 

Other SAIF members............................................................ 396,597 400,169 421,790 -6.0 

* Figures have been amended from the March 1998 report. Refer to page 15. 

** Includes U.S. branches of foreign banks. 

*** Fund balance as a percent of estimated insured deposits. 

Insurance Fund Reserve Ratios* Fund Balance and Insured Deposits 

Percent of Insured Deposits ($ Millions) 

BIF Fund BIF-Insured SAIF Fund SAIF-Insured 

Balance Deposits Balance Deposits 1.25 

12/91 -7,028 1,957,722 101 776,351 

12/92 -101 1,945,550 279 732,159 

12/93 13,122 1,905,245 1,157 697,885 

12/94 21,848 1,895,258 1,937 693,610 

12/95 25,454 1,951,963 3,358 711,897 

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

12/97 28,293 2,056,172 9,368 689,802 

3/98 28,559 2,076,128 9,484 701,212 

6/98 28,931 2,071,753 9,610 697,386 

* Insured deposit amounts are estimates. 6/98 fund balances are unaudited. 

-0.36 

0.69 

1.15 

1.30 1.34 

1.40 

0.01 0.04 

1.35 1.38 1.38 

-0.01 

1.38 

0.47 

1.30 

1.36 

0.28 

0.17 

12/91 12/92 12/93 12/94 12/95 12/96 12/97 3/98 6/98 

BIF 

SAIF 

Target Ratio 

TABLE IV-C. Closed/Assisted Institutions 

(dollar figures in millions) 

BIF Members 

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

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

SAIF Members 

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

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

* Through June 30. 

1998* 1997* 1997 1996 1995 1994 1993 

 1 

 $42 

0 

$0 

1 

$27 

5 

$182 

6 

$753 

13 

$1,392 

41 

$3,539 

 0 

 $0 

0 

$0 

0 

$0 

1 

$35 

2 

$426 

2 

$129 

9 

$6,105 
 

 

 

 

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

(dollar figures in millions) 1998** 1997** 1997 1996 1995 1994 1993 

BIF Members 

Number of institutions reporting................................................ 9,238 9,584 9,404 9,823 10,243 10,760 11,291 

BIF-member Oakars............................................................ 760 782 778 793 807 719 569 

Other BIF-members............................................................... 8,478 8,802 8,626 9,030 9,436 10,041 10,722 

Total assets........................................................................... $5,479,671 $5,047,547 $5,285,423 $4,857,762 $4,577,898 $4,248,300 $3,949,695 

Total deposits........................................................................ 3,704,426 3,480,097 3,611,462 3,404,204 3,225,650 3,062,718 2,951,979 

Net income........................................................................... 33,496 30,324 61,474 54,485 50,780 46,882 44,498 

Return on assets (%)............................................................... 1.24 1.23 1.22 1.17 1.15 1.14 1.17 

Return on equity (%)............................................................... 14.64 14.63 14.44 14.14 14.32 14.43 14.89 

Noncurrent assets plus OREO to assets (%)................................. 0.65 0.71 0.67 0.77 0.89 1.06 1.69 

Number of problem institutions................................................... 63 75 73 86 151 264 472 

Assets of problem institutions (in billions).................................... $4,962 $4,568 $4,598 $6,624 $20,166 $42,311 $269,159 

Number of failed/assisted institutions.......................................... 1 0 1 5 6 13 41 

Assets of failed/assisted institutions (in billions).............................. 42 0 27 182 753 1,392 3,539 

SAIF Members 

Number of institutions reporting................................................ 1,474 1,576 1,518 1,629 1,727 1,843 1,929 

SAIF-member Oakars............................................................ 111 100 111 91 76 55 28 

Other SAIF-members............................................................ 1,363 1,476 1,407 1,538 1,651 1,788 1,901 

Total assets........................................................................... $747,885 $752,408 $755,724 $748,848 $760,521 $770,785 $757,362 

Total deposits........................................................................ 504,755 518,386 514,409 520,855 543,831 548,901 576,507 

Net income........................................................................... 3,910 3,520 6,487 4,883 5,584 4,102 5,381 

Return on assets (%)............................................................... 1.06 0.96 0.94 0.67 0.76 0.56 0.72 

Return on equity (%)............................................................... 12.22 11.63 11.13 8.07 9.47 7.16 9.74 

Noncurrent assets plus OREO to assets (%)................................. 0.87 1.03 0.98 1.07 1.12 1.23 1.85 

Number of problem institutions................................................... 19 28 19 31 42 54 100 

Assets of problem institutions (in billions).................................... $2,952 $3,016 $1,662 $5,548 $10,846 $30,336 $64,973 

Number of failed/assisted institutions.......................................... 0 0 0 1 2 2 9 

Assets of failed/assisted institutions (in billions).............................. $0 $0 $0 $35 $426 $129 $6,105 

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

** Through June 30, ratios annualized where appropriate. 

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

(dollar figures in millions) 

June 30, 1998 

Commercial Banks and Savings Institutions 

Number of Total Domestic 

Institutions Assets Deposits* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks............................................. 8,984 $5,182,759 $2,957,538 $1,885,663 $233,811 $2,119,474 

BIF-member..................................................................... 8,879 5,124,896 2,915,000 1,873,664 210,336 2,084,000 

SAIF-member.................................................................. 105 57,863 42,537 11,999 23,475 35,474 

FDIC-Supervised............................................................... 5,448 908,804 683,271 483,356 48,919 532,275 

OCC-Supervised............................................................... 2,547 2,978,686 1,708,403 1,094,282 142,613 1,236,895 

Federal Reserve-Supervised................................................ 989 1,295,268 565,864 308,025 42,279 350,305 

FDIC-Insured Savings Institutions............................................. 1,728 1,044,797 702,606 184,764 463,575 648,340 

OTS-Supervised Savings Institutions....................................... 1,179 787,121 514,937 63,540 411,640 475,179 

BIF-member..................................................................... 37 152,074 92,955 44,167 43,555 87,722 

SAIF-member.................................................................. 1,142 635,046 421,982 19,372 368,085 387,457 

FDIC-Supervised State Savings Banks.................................... 549 257,676 187,670 121,225 51,935 173,160 

BIF-member..................................................................... 322 202,700 147,434 120,210 14,680 134,891 

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

Total Commercial Banks and 

 227 54,976 40,235 1,014 37,255 38,270 

Savings Institutions................................................... 10,712 6,227,556 3,660,144 2,070,428 697,386 2,767,814 

BIF-member........................................................................ 9,238 5,479,671 3,155,389 2,038,042 268,571 2,306,613 

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

Other FDIC-Insured Institutions 

 1,474 747,885 504,755 32,386 428,815 461,201 

U.S. Branches of Foreign Banks............................................. 27 8,961 2,719 1,326 0 1,326 

Total FDIC-Insured Institutions....................................... 10,739 6,236,517 3,662,864 2,071,753 697,386 2,769,140 

* Excludes $549 billion in foreign office deposits, which are uninsured. 
 

TABLE VII-C. Assessment Base Distribution and Rate Schedules 

BIF Assessment Base Distribution 

Assessable Deposits in Millions as of June 30, 1998 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 1998 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

Assessable deposit base...........................

2. Adequately capitalized 

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

Assessable deposit base...........................

3. Undercapitalized 

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

Assessable deposit base...........................

...

...

...

8,808 

 $2,791,278 

132 

 $25,109 

4 

 $163 

95.1% 

98.3% 

1.4% 

0.9% 

0.0% 

0.0% 

248 2.7% 

$17,540 0.6% 

18 0.2% 

$903 0.0% 

$0 0.0% 

0 0.0% 

33 

$2,284 

15 

$1,269 

7 

$732 

0.4% 

0.1% 

0.2% 

0.0% 

0.1% 

0.0% 

Note: "Number" reflects the number of BIF members; "Base" reflects the SAIF-assessable deposits held by both BIF and SAIF members. 

Institutions are categorized based on capitalization and a supervisory subgroup rating, which is generally determined 

by on-site examinations. Includes U.S. branches of foreign banks. 

SAIF Assessment Base Distribution 

Assessable Deposits in Millions as of June 30, 1998 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 1998 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

Assessable deposit base...........................

2. Adequately capitalized 

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

Assessable deposit base...........................

3. Undercapitalized 

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

Assessable deposit base...........................

...

...

...

1,354 

 $700,334 

14 

 $4,722 

1 

 $15 

91.9% 

95.7% 

0.9% 

0.6% 

0.1% 

0.0% 

83 5.6% 

$24,258 3.3% 

7 0.5% 

$1,283 0.2% 

0 0.0% 

$0 0.0% 

9 

$855 

5 

$238 

1 

$478 

0.6% 

0.1% 

0.3% 

0.0% 

0.1% 

0.1% 

Note: "Number" reflects the number of SAIF members; "Base" reflects the SAIF-assessable deposits held by both BIF and SAIF members. 

Institutions are categorized based on capitalization and a supervisory subgroup rating, which is generally determined 

by on-site examinations. 

Assessment Rate Schedules 

Second Semiannual 1998 Assessment Period 

Cents Per $100 of Assessable Deposits 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well Capitalized.......................................... 

2. Adequately Capitalized..............................

3. Undercapitalized.......................................

... 

...

0 

3 

 10 

3 

10 

24 

17 

24 

27 

Note: Rates for the BIF and the SAIF are set separately by the FDIC. 

Currently, the rate schedules are identical. 
Number of FDIC-Insured "Problem" Institutions, 

1990 - 1998 

Number of Institutions 

1,500 

1,000 

500 

0 

Savings Institutions 

Commercial Banks 

800 

600 

400 

200 

0 

Savings Institutions 298 291 184 92 39 14 13 10 8 7 5 3 2 2 2 3 

12/9012/9112/9212/9312/9412/95 3/96 6/96 9/96 12/96 3/97 6/97 9/97 12/97 3/98 6/98 

1,492 

1,426 

1,063 

572 

318 

193 169 137 125 117 112 103 98 92 84 82 

$ Billions 

Assets of FDIC-Insured "Problem" Institutions, 

1990 - 1998 

Savings Institutions 

Commercial Banks 

Savings Institutions 

Commercial Banks 

1,012 1,016 787 426 247 144 127 99 89 82 77 74 71 71 68 

480 410 276 146 71 49 42 38 36 35 35 29 27 21 16 

64 

18 

12/9012/9112/9212/9312/9412/95 3/96 6/96 9/96 12/96 3/97 6/97 9/97 12/97 3/98 6/98 

$640 

$819 

$592 

$334 

$72 

$31 $27 $18 $15 $12 $10 $8 $6 $6 $7 $8 

Commercial Banks 342 528 408 242 33 17 13 8 7 5 5 5 4 5 5 5 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 20 Second Quarter 1998 
NOTES TO USERS 

This publication contains financial data and other information 

for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding the 

comparability of source data and reporting differences over 

time. The information presented in the FDIC Quarterly Banking Profile is divided into the following groups of institutions: 

FDIC-Insured Commercial Banks 

(Tables I-A through V-A.) 

This section covers commercial banks insured by the FDIC 

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

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

the three federal commercial bank regulators (the Board of 

Governors of the Federal Reserve System, the FDIC or the 

Office of the Comptroller of the Currency). 

FDIC-Insured Savings Institutions 

(Tables I-B through V-B.) 

This section covers savings institutions insured by either BIF 

or SAIF that operate under state or federal banking codes 

applicable to thrift institutions, except for one self-liquidating 

institution primarily funded by the FSLIC Resolution Fund 

(FRF). Savings institutions in Resolution Trust Corporation 

conservatorships are also excluded from these tables while 

in conservatorship, where applicable. The institutions covered in this section are regulated by and submit financial 

reports to one of two Federal regulators – the FDIC or the 

Office of Thrift Supervision (OTS). 

FDIC-Insured Institutions by Insurance Fund 

(Tables I-C through VII-C.) 

Summary balance-sheet and earnings data are provided for 

commercial banks and savings institutions according to 

insurance fund membership. BIF-member institutions may 

acquire SAIF-insured deposits, resulting in institutions with 

some deposits covered by both insurance funds. Also, SAIF 

members may acquire BIF-insured deposits. The insurance 

fund membership does not necessarily reflect which fund 

insures the largest percentage of an institution's deposits. 

Therefore, the BIF-member and the SAIF-member tables 

each include deposits from both insurance funds. Depository 

institutions that are not insured by the FDIC through either the 

BIF or SAIF are not included in the FDIC Quarterly Banking 

Profile. U.S. branches of institutions headquartered in foreign 

countries and non-deposit trust companies are not included 

unless otherwise indicated. Efforts are made to obtain finan -

cial reports for all active institutions. However, in some cases, 

final financial reports are not available for institutions that 

have closed or converted their charter. 

DATA SOURCES 

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Call Reports and the OTS 

Thrift Financial Reports submitted by all FDIC-insured 

depository institutions. This information is stored on and 

retrieved from the FDIC's Research Information System 

(RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting and 

accounting requirements of the FFIEC Call Reports. Beginning in March 1997, both Thrift Financial Reports and Call 

Reports are completed on a fully consolidated basis. Previously, the consolidation of subsidiary depository institutions 

was prohibited. Now, parent institutions are required to file 

consolidated reports, while their subsidiary financial institutions are still required to file separate reports. Data from subsidiary institution reports are included in the Quarterly 

Banking Profile tables, which can lead to double-counting. No 

adjustments are made for any double-counting of subsidiary 

data. 

All asset and liability figures used in calculating performance 

ratios represent average amounts for the period (beginningof-period amount plus end-of-period amount plus any interim 

periods, divided by the total number of periods). For “poolingof-interest” mergers, the assets of the acquired institution(s) 

are included in average assets since the year-to-date income 

includes the results of all merged institutions. No adjustments 

are made for “purchase accounting” mergers. Growth rates 

represent the percentage change over a 12-month period in 

totals for institutions in the base period to totals for institutions 

in the current period. 

All data are collected and presented based on the location of 

each reporting institution's main office. Reported data may 

include assets and liabilities located outside of the reporting 

institution's home state. In addition, institutions may change 

their charters, resulting in an inter-industry migration, e.g., 

savings institutions can convert to commercial banks or commercial banks may convert to savings institutions. These 

situations can affect state and regional statistics. 

ACCOUNTING CHANGES 

Adoption of GAAP Reporting – Effective with the March 31, 

1997 Call Reports, generally accepted accounting principles 

(GAAP) were adopted as the reporting basis for the balance 

sheet, income statement and supporting schedules. New 

reporting instructions for 1997 and 1998 changed the 

amounts reported for a number of items used in the Quarterly 

Banking Profile, so that comparability with prior periods may 

be affected. Among the items most significantly affected by 

the new reporting rules are: loans & leases, reserve for 

losses, loss provisions, goodwill and other intangibles, all 

other assets and equity capital (see definitions below). More 

information on changes to the Call Report in March 1997 and 

in March 1998 is contained in Financial Institution Letters 

(FIL-27-97 and FIL-28-98), which are available through the 

FDIC World Wide Web site at www.fdic.gov/banknews/fils/, 

or from the FDIC Public Information Center, 801 17th Street, 

NW, Washington, DC 20434; telephone (800) 276-6003. 

Information on changes to the March 31, 1997 Thrift Financial 

Reports is available from the Office of Thrift Supervision, 

1700 G Street, NW, Washington, DC 20552; telephone (202) 

906-5900. 

Subchapter S Corporations –The Small Business Job Protection Act of 1996 changed the Internal Revenue Code to 

allow financial institutions to elect Subchapter S corporation 

status, beginning in 1997. A Subchapter S corporation is 

treated as a pass-through entity, similar to a partnership, for 

federal income tax purposes. It is generally not subject to any 

federal income taxes at the corporate level. Its taxable 

income flows through to its shareholders in proportion to their 

stock ownership, and the shareholders generally pay federal 

income taxes on their share of this taxable income. This can 

FDIC Quarterly Banking Profile

Second Quarter 1998 21 Notes to Users
have the effect of reducing institutions’ reported taxes and 

increasing their after-tax earnings. 

The election of Subchapter S status may result in an increase 

in shareholders’ personal tax liability. Therefore, some S corporations may increase the amount of earnings distributed as 

dividends to compensate for higher personal taxes. 

DEFINITIONS (in alphabetical order) 

All other assets – total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

estate, investment in unconsolidated subsidiaries, customers' liability on acceptances outstanding, assets held in trading accounts, federal funds sold, securities purchased with 

agreements to resell, and other assets. Beginning 3/31/97, 

Federal funds sold are reported on a consolidated basis 

(domestic and foreign offices combined). Previously, Federal 

funds sold through foreign offices were reported as loans. 

All other liabilities – bank's liability on acceptances, limitedlife preferred stock, allowance for estimated off-balance 

sheet credit losses, and other liabilities. 

Assessment base 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

(Percent) Capital * Capital * Leverage Equity

Well-capitalized ≥10 and ≥6 and ≥5 Š

Adequately

capitalized ≥8 and ≥4 and ≥4 Š

Undercapitalized ≥6 and ≥3 and ≥3 Š

Significantly

undercapitalized <6 or <3 or <3 and >2

Critically

undercapitalized Š Š Š ≤2

*As a percentage of risk-weighted assets.

For purpose of BIF and SAIF assessments, risk-based 

assessment rules combine the last three capital rating 

categories into a single “undercapitalized” group. 

Supervisory risk subgroup assignments are based on 

supervisory ratings. The strongest institutions (those rated 1 

or 2) are in subgroup A, those rated 3 are in subgroup B, and 

those rated 4 or 5 are in subgroup C. 

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

insured deposits that is insured by the BIF. For SAIFmember “Oakar” institutions, it represents the adjusted attributable amount acquired from BIF members. 

Construction and development loans – includes loans for 

all property types under construction, as well as loans for land 

acquisition and development. 

Core capital – common equity capital plus noncumulative 

perpetual preferred stock plus minority interest in consolidated subsidiaries, less goodwill and other ineligible intangible assets. The amount of eligible intangibles (including 

servicing rights) included in core capital is limited in accordance with supervisory capital regulations. 

Cost of funding earning assets – total interest expense 

paid on deposits and other borrowed money as a percentage 

of average earning assets. 

Derivative contracts, gross fair values (positive/negative) – are reported separately and represent the amount at 

which a contract could be exchanged in a transaction 

between willing parties, other than in a forced or liquidation 

sale. If a quoted market price is available for a contract, the 

fair value reported for that contract is calculated using this 

market price. If quoted market prices are not available, the 

reporting banks use the best estimate of fair value based on 

quoted market prices of similar contracts or on valuation techniques such as discounted cash flows. This information is 

reported only by banks with assets greater than $100 million. 

Direct and indirect investments in real estate – excludes 

loans secured by real estate and property acquired through 

foreclosure. 

Earning assets – all loans and other investments that earn 

interest or dividend income. 

Efficiency Ratio – Noninterest expense less amortization of 

intangible assets as a percent of net interest income plus 

noninterest income. This ratio measures the proportion of net 

operating revenues that are absorbed by overhead 

expenses, so that a lower value indicates greater efficiency. 

Estimated insured deposits – 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 

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 

servicing rights, purchased credit card relationships and 

other identifiable intangible assets. 

Loans secured by real estate – includes home equity loans, 

junior liens secured by 1-4 family residential properties and 

all other loans secured by real estate. 

Loans to individuals – includes outstanding credit card balances and other secured and unsecured consumer loans. 

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

remaining maturities or repricing intervals of over five years. 

Mortgage-backed securities – certificates of participation in 

pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored 

or private enterprises. Also, see “Securities”, below. 

Net charge-offs – total loans and leases charged off 

(removed from balance sheet because of uncollectibility), 

less amounts recovered on loans and leases previously 

charged off. 

Net interest margin – the difference between interest and 

dividends earned on interest-bearing assets and interest paid 

to depositors and other creditors, expressed as a percentage 

of average earning assets. No adjustments are made for 

interest income that is tax exempt. 

Net 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. 

FDIC Quarterly Banking Profile

Notes to Users 22 Second Quarter 1998
Noncurrent loans & leases – the sum of loans and leases 

90 days or more past due, and loans and leases in nonaccrual status. 

Number of institutions reporting – the number of institutions that actually filed a financial report. 

Off-balance-sheet derivatives – represents the sum of the 

following: interest-rate contracts (defined as the notional 

value of interest-rate swap, futures, forward and option contracts), foreign-exchange-rate contracts, commodity contracts and equity contracts (defined similarly to interest-rate 

contracts). 

Futures and forward contracts – a contract in which the 

buyer agrees to purchase and the seller agrees to sell, at a 

specified future date, a specific quantity of underlying at a 

specified price or yield. These contracts exist for a variety of 

underlyings, including the traditional agricultural or physical 

commodities, as well as currencies and interest rates. Futures contracts are standardized and are traded on organized 

exchanges which set limits on counterparty credit exposure. 

Forward contracts do not have standardized terms and are 

traded over the counter. 

Option contracts – a contract in which the buyer acquires 

the right to buy from or sell to another party some specified 

amount of underlying at a stated price (strike price) during a 

period or on a specified future date, in return for compensation (such as a fee or premium). The seller is obligated to purchase or sell the underlying at the discretion of the buyer of 

the contract. 

Swaps – an obligation between two parties to exchange a series of cash flows at periodic intervals (settlement dates), for 

a specified period. The cash flows of a swap are either fixed, 

or determined for each settlement date by multiplying the 

quantity of the underlying (notional principal) by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not 

exchanged. 

Other borrowed funds – federal funds purchased, securities sold with agreements to repurchase, demand notes 

issued to the U.S. Treasury, other borrowed money, mortgage indebtedness, obligations under capitalized leases and 

trading liabilities, less revaluation losses on assets held in 

trading accounts. 

Other real estate owned – primarily foreclosed property. 

Direct and indirect investments in real estate ventures are 

excluded. The amount is reflected net of valuation allowances. For institutions that file a Thrift Financial Report 

(TFR), the valuation allowance subtracted also includes 

allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported 

gross of valuation allowances. 

Percent of institutions with earnings gains – the percent 

of institutions that increased their net income (or decreased 

their losses) compared to the same period a year earlier. 

“Problem” institutions – federal regulators assign a composite rating to each financial institution, based upon an 

evaluation of financial and operational criteria. The rating is 

based on a scale of 1 to 5 in ascending order of supervisory 

concern. “Problem” institutions are those institutions with 

financial, operational, or managerial weaknesses that 

threaten their continued financial viability. Depending upon 

the degree of risk and supervisory concern, they are rated 

either a “4” or “5”. For all BIF-member institutions, and for all 

SAIF-member institutions for which the FDIC is the primary 

federal regulator, FDIC composite ratings are used. For all 

SAIF-member institutions whose primary federal regulator is 

the OTS, the OTS composite rating is used. 

Reserves for losses – the allowance for loan and lease 

losses and the allocated transfer risk reserve on a consolidated basis. Prior to March 31, 1997, institutions filing a Thrift 

Financial Report (TFR) included specific reserves, while Call 

Report filers included only general valuation allowances. 

Beginning March 31, 1997, TFR reporters net these specific 

reserves against each loan balance. Also beginning March 

31, 1997, the allowance for off-balance-sheet credit exposures was moved to “Other liabilities”; previously, it had been 

included in the general valuation allowance. 

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 offbalance-sheet items multiplied by risk-weights that range 

from zero to 100 percent. A conversion factor is used to 

assign a balance sheet equivalent amount for selected offbalance-sheet accounts. 

SAIF-insured deposits (estimated) – the portion of estimated insured deposits that is insured by the SAIF. For BIFmember “Oakar” institutions, it represents the adjusted attributable amount acquired from SAIF members. 

Securities – excludes securities held in trading accounts. 

Banks' securities portfolios consist of securities designated 

as “held-to-maturity”, which are reported at amortized cost 

(book value), and securities designated as “available-forsale”, reported at fair (market) value. 

Securities gains (losses) – realized gains (losses) on heldto-maturity and available-for-sale securities, before adjustments for income taxes. Thrift Financial Report (TFR) filers 

also include gains (losses) on the sales of assets held for 

sale. 

Troubled real estate asset rate – noncurrent real estate 

loans plus other real estate owned as a percent of total real 

estate loans and other real estate owned. 

Unearned income & contra accounts – unearned income 

and loans-in-process for TFR filers. Beginning March 31 

1997, TFR filers net the unearned income and the loans-inprocess against each loan balance, leaving just the unearned 

income on loans reported by Call Report filers. 

Unused loan commitments – includes credit card lines, 

home equity lines, commitments to make loans for construction, loans secured by commercial real estate, and unused 

commitments to originate or purchase loans. 

Volatile liabilities – the sum of large-denomination time 

deposits, foreign-office deposits, federal funds purchased, 

securities sold under agreements to repurchase, and other 

borrowings. 

Yield on earning assets – total interest, dividend and fee 

income earned on loans and investments as a percentage of 

average earning assets. 

FDIC Quarterly Banking Profile

Second Quarter 1998 23 Notes to Users