First Quarter, 1990 

FDIC 

Division of Research 

& Statistics 

Don Inscoe 

(202) 898-3940 

Ross Waldrop 

(202) 898 -3951 

The FDIC 

uarterlY-_____L_.Wi_,m_am_S_eid_m_an.:...... C_ha_irm_an 

anking B~ofile 

COMMERCIAL BANKING PERFORMANCE-.FIRST QUARTER, 1990 

• Banks Earn $6.3 Billion In First Quarter 

• ·Net Loan Charge-Offs Almost Twice As High As Year Ago 

• Real Estate Lending Growth Remains Strong In West, Southeast And Central 

Regions 

• Fifteen Percent of Northeast Banks Report Earnings Losses 

• Earnings Restatements Reduce 1989 Industry Profits By $629 Million 

Insured commercial banks earned $6.3 billion in the 

first quarter of 1990, $1 billion less than in the record 

first quarter of 1989. The earnings decline was mainly 

attributable to higher provisioning for domestic credit 

losses, although net interest margins were narrower 

than a year earlier. Banks set aside $5.8 billion in 

loan-loss provisions in the first three months of this 

year, more than $2.2 billion above the the amount set 

aside in the first quarter of 1989. Actual net loan 

charge-offs, at $6.6 billion, were up .by $3.1 billion 

from first quarter 1989. The failure of loss provisions 

to cover actual net loan losses resulted in a net 

draw-down of industry reserves during the quarter. 

Chart A - Quarterly Net Income of 

FDIC-Insured Banks 

1986-1990 $ Billions 

8 

~ 4.8 :~ 

4 

(4) 

jj'. Secu~ and Other G~ins 

(8) ·· ·· ~ Net ~ting Income f · ~:f First Rep~blic Effect j 

<12>.____2_3_4_1_2_3----'~--1_2_3_4_ - . 1_. _2_3_4__1...., 

1986 1987 1988 1989 1990 

Industry profitability, as measured by return on 

average assets, was 0.76 percent for the first quarter, 

17 basis points lower than in 1989's first quarter. 

Fewer than half of the 12,593 banks reporting 

first-quarter results saw their earnings improve over 

last year's first quarter. For the first time in several 

years, the percentage of banks with quarterly 

earnings losses was up from the same quarter of the 

previous year. The drop-off in profitability was most 

evident among banks in the Northeast, where 

quarterly ROA, at 0.52 percent, was down by 35 

basis points. More than 15 percent of the banks in the 

Northeast reported a net loss for the quarter, double 

the proportion of a year ago. 

For the second consecutive quarter, commercial 

banks' percentage of troubled assets was higher than 

twelve months earlier. This trend was limited to banks 

in the eastern half of the country. Write-downs of 

loans to Mexico stemming from the debt restructuring 

agreement, as well as losses on domestic real estate 

loans in the Northeast, were primarily responsible for 

the $3.1 billion increase in net loan charge-offs. 

Severa! banks in the Northeast Region restated their 

1989 results during the first quarter, recognizing 

higher levels of impaired real estate loans. These 

restatements reduced 1989 industry earnings by 

$629 million, increased net loan charge-offs by $687 

million, and increased the·amount of noncurrent loans 

and leases plus other real estate owned at year-end 

by $477 million. 

Chart B - Quarterly Net Interest 

Margins, 1983-1990 

Net Interest Margin (%) 

5 r----.--,......,...-...,.....,,--,--,-----,--,---"T""""-...,.....,--"""T'"--~ 

4.5 

I 

! 

4 ......... .. . 

12341234 123412341234123412341 

1983 1984 1985 1986 1987 1988 1989 1990 

For assistance contact: Section508@fdic.gov
Asset growth remained slow In the first quarter. charge-offs were $244 million higher. Problems in 

Total assets increased by $11.5 billion during the both real estate and commercial loans in 

first quarter, and grew by 5.1 percent in the twelve Tennessee, Florida and Georgia were mainly 

months ending March 31 . Sluggish demand In loan responsible for the drop-off in asset quality 

categories other than real estate was apparent; of Indicators of the Region's banks. 

the $110.8 billion net Increase in total loans . 

between the first quarters of 1989 and 1990, real 

estate loans accounted for $82.4 billion1 or 74 

percent. An Increase of $39.4 billion ln banks' 

holdings of mortgage-backed securities also 

contributed to the industry's year-to-year net asset 

growth. Together, the twelve-month increase In real 

estate loans and mortgage-backed securities was 

equivalent to 76 percent of the net increase In total 

bank assets. 

A$1.1 billion decline in net income compared to the 

first quarter of 1989 at Northeast banks exceeded 

the $1 · billion drop for the banking industry as a 

whole. But the first quarter's return on assets of 

0.52 percent for banks located in the Northeast was 

a positive change from the two consecutive 

quarterly losses that preceded it. Bank performance 

in the Northeast remains dampened by asset 

quality problems in domestic real estate and 

international loan portfolios. Noncurrent loans and 

leases plus other real estate owned grew by $3.9 

billion during the first quarter, ending the period 

$9.4 billion above the level of a year ago. 

Banks in the Southeast Region enjoyed the highest 

12-month asset growth rate of any region. Real 

estate loan growth in the Southeast was second 

only to the West Region, and mortgage-backed 

security holdings also showed rapid growth. 

Noncurrent loans and leases plus other real estate 

owned increased by $1 billion during the first 

quarter, to more than $2 billion above the level of a 

year earlier. Loss provisioning was $382 million 

higher than in the first quarter of 1989, and net 

Increased real estate lending accounted for 124 

percent of net total asset growth at banks in the 

W~st Region during the first quarter. Apart from 

~~na, the Region's banks show few signs of 

lnc1~1e~t real_ estate difficulties. Profitability showed 

continuing improvement despite narrower net 

interest margins; · noninterest income was up by 20 

percent over the first quarter of 1989, contributing 

17 percent of total revenues. 

The number of FDIC-insured commercial banks 

declined during the quarter, from 12,707 to fewer 

than 12,600. Industry consolidation continues 

despite a year-to-year drop in the number of bank 

failures. Thirty-six banks failed in the first quarter of 

1990, compared to 64 failures during the first three 

months of 1989. The number of banks on the 

FDIC's MProblem Lisr continued to fall albeit at a 

slower rate than in recent periods. ' 

For the _remainder of the year, the outlook for 

commercial banking performance is mixed. Small 

banks should continue to show improvement 

especially i~ the Midwest and Southwest Regions'. 

Many medium-to-large institutions in the eastern 

U.S. are likely to experience further difficulties with 

real estate loans. The annual joint examination of 

large comm_ercial credits by Federal banking 

regulators Will .be completed later this year, and 

may lead to increased reserve requirements at 

larger banks for real estate loans and loans to 

highly-lev~ged commercial borrowers. Money-center 

banks Will probably take lower provisions for future 

losses this year, as they seek to boost internal 

capital generation through higher retained earnings. 

Chart C - Noncurrent Real Estate Loan Rates by States 

March 31, 1990 

Midwest Central Northeast 

-NH 4.55 

f't\l,'I'~~- - MA 9.22 

RI 6.46 T 7.o, J 4.37 

0.89 

0 .97 

Noncurrent Real Estate Loan Percentage: 

D 2% or Lesa D Between 2% and 3% ■ 3% or Higher 

2 
Table I. Selected Indicators, FDIC-Insured Commercial Banks 

191:Xr 1989* 1989 1988 1987 1983 1985 

Return on assets •.. .. . ... . .... . .... . .. .. . 0.76% 0.93% 0.50% 0.82% 0.12% 0.63% 0.70% 

Return on equity .. ... . . . .. ... . . . .. . . . . •... 12.08 14.57 7Pf2. 13.31 2.00 9.94 11.31 

Equity capital to assets • .... ..... ....... ... 6.40 6.41 621 6.28 6.04 620 620 

Primary capital ratio . ..... ....... .. .. .. .. . . 7.99 7.99 7.92 7.65 7.70 722 6.91 

Noncurrent loans and leases plus 

other real estate to assets .. ... .• . .. . •• .. . 2.35 2.21 2.28 2.14 2.46 1.94 1.87 

Net charge-offs to loans ... .... ... .....••. •. 129 0.73 1.16 1.00 0.92 0.98 0.84 

Asset growth rate . . .. .. . . .... . . .. . .... . ... 5.11 4.38 5.38 5.68 2.03 7.71 8.86 

Net operating income growth . .. . . ... . .. . ... -19.77 62.40 -38.52 1666.92 -8527 -20.65 6.30 

Percentage of unprofitable banks .. •.. . .. . ... 1020 9.12 12.10 14.63 17.66 19.79 17.09 

Number of problem banks . ............... •. 1,058 1,289 1,092 1,394 1,559 1,457 1,098 

Number of failed/assisted banks ........• . • .• 36 64 206 221 201 144 118 

"Through March 31; ratios annualized where appropriate 

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

(dollar figures in millions) 

Preliminary 

1st Otr 4th Otr 1st Otr %Change 

1900 1989 1989 89:HXJ:1 

Number of banks reporting ..... ... ......... . . . . . ....•... . .••.. . .. 12,593 12,707 13,003 -3.1 

Total employees (full-time equivalent) ... .. ... . ... .. ... .. . . ...••. ..• . 1,524,427 1,531,350 1,526,255 -0.1 

CONDmON DATA 

Total assets .... . .......•. . . ... .. . .. .. .. . . ... ... ....• .... .... .. $3,310,647 $3,299,176 $3,149,m 5.1 

Real estate loans .. .. ........... ... ......... .. ... . ..... . .. . . m;,35 761,613 695,182 11.8 

Commercial & industrial loans ........... . ........ .. ... . ..... . 623,000 618,731 604,203 3.1 

Loans to individuals . .. . ........ . .. . .. ... .. .. ............. . . . 300,428 400,588 371 ,541 4.5 

Fam, loans ..... .. ...... .. ..... . .... .. . . ..... . .....• .. ... . . 29,738 31,114 28,721 3.3 

Other loans and leases ...... . ........ . . . . . .........• . .. .. . .. 237,043 245,576 247,367 -42 

Total loans and leases .......... .. . . ....... . . .. ... . ... . ... . . . 2,057,825 2,057,621 1,947,013 5.7 

LESS: Reserve for losses ........... . .. ........ . .. . .. ... .•... 52,604 53,707 45,929 14.5 

Net loans and leases . . ... . ... .... .... . ....... ...... ..... ... .. . 2,005,221 2,003,915 1,001,084 5.5 

Temporary investments ... . . . .... ... . ..... .... ... . .. . ..... . ... . 400,927 481,133 485,212 12 

Securities over 1 year ..... . .. . .. . .. . . .. .. .. •. .... ... ... .• . .... 420,427 402,653 386,009 8.9 

All other assets .... ... ............. ... .. . . . . .. .... .. . . ...... . 394,072 411,476 377,472 4.4 

Total liabilities and capital .... . ... . .•... . ..... ... . . .. . . ..... .. . .. . $3,310,647 $3,299,176 $3,149,m 5.1 

Noninterest-bearing deposits .. . .. . . . .•.. . ...... . ... . ...... ...... 437,331 483,425 440,198 -0.6 

Interest-bearing deposits ....... . .............. ... . .. . . ...... . . . 2,105,003 2,065,003 1,988,492 5.9 

Other borrowed funds ......... . .. . .... . ....... . . . .. . . ... ... . . . 426,649 418,675 399,422 6.8 

Subordinated debt .. . . . ... . ......... .. .............. .. .. . . . .. . 19,369 19,651 17,353 11.6 

All other liabilities ....... ...... ....... .. . .. . .. ........ . . .. ... . 109,558 107,476 102,507 6.9 

Equity capital .......................... . .. . .. .. . .. .... . .. . .. . 211,778 204,885 201,005 4.9 

Primary capital ........ .. .. . ...... . ..........• . . .. . .... ...... . .. 265,970 261,303 251,673 5.7 

Noncurrent loans and leases . . ......... . ..... . .. . ... . .... . .. . .. . •. 64,407 61,588 57,736 11 .6 

Other real estate owned ....... . ... . ...... . .. .. ... . .... . ... . .... . 14,204 13,779 11,759 20.8 

Loan commitments and letters of credit' .... . ........ .. .. . . . ... . .. . . 1,218.23) 

Domestic office assets ......... . .. . . .. . .. . . ... .... ... .. ..... ... . 2,895,442 2,897,051 2,735,323 5.8 

Foreign office assets ... . .. . .. . . .... .... . .. . ....... .. ... . .....•.. 415,205 402,125 414,454 02 

Domestic office deposits . ... .. ... . ............. . ..... . .... . . . ... . 2,216,563 2,236,733 2,103,838 5.4 

Foreign office deposits ........ . ..... . ... . . •.. . . ... ...•. •...... . . 326,731 311,755 324.852 0.6 

Earning assets . . ... . . ... . . ... .. ... .... ... . .. ... . . . . .. ... ..... . . 2,916,575 2,887,700 2,772,r/5 52 

Volatile liabilities ............... . . . .... ... .... . .... . .......... . . 1,149,898 1,128,383 1,116,549 3.0 

Preliminary 

INCOME DATA Full Year Full Year 1st Otr 1st Otr 

1989 1988 %Change 1900 1989 % Change 

Total interest income .. . . .. . .. •.... .. ...... $317,337 $272,289 $16.5 $81,347 $75,524 7.7 

Total interest expense ..... . ........ •.. .. .. 205,119 165,033 24.3 52,984 47.~ 11.5 

Net interest income .... . ... .. . . ........ . 112,218 107,255 4.6 28,363 28,019 12 

Provision for loan losses ............. . .. . . . 30,964 17,157 00.5 5,008 3,637 59.7 

Total noninterest income ... .. . .... ..... . . . . 51,073 44,945 13.6 13,342 11,731 13.7 

Total noninterest expense .. .........•...... 108,071 101,322 6.7 27,754 25,939 7.0 

Applicable income taxes .. . ..... .. . . ..... . . 9,668 9,995 -3.3 2,376 2,!:85 -20.4 

Net operating income .. . .... .. .... . ..... . 14,588 23,726 -38.5 5,767 7,188 -19.8 

Securities gains, net . .. .. ......... . . . ... . . . 797 200 184.9 108 51 111.0 

Extroordinary gains, net . ... . ... . ..... . .. . . . 307 841 -63.5 402 13 3112.6 

Net income ............. .. ..... . ... .. . . 15,692 24,847 -36.8 6,278 7;152. -13.4 

Net charge-offs . ........ . ....... . ........ . 22,850 18,627 22.7 6,624 3JRJ7 65.7 

Net additions to capital stock .............. . 1,488 3,165 -53.3 564 195 1892 

Cash dividends on capital stock . . ..... .. .. . . 14,062 13,233 6.3 3,214 3,169 1.4 

'See Notes to Users, p.6 

3 
Table Ill. First Quarter 1990 Bank Data (Dollar figures in billions, ratios in %) 

Asset Size Distribution Geographic Distribution 

Less $100 Million Greater EAST WEST 

than $100 to $1-10 than $10 Northeast Southeast Central Midwest Southwest West All Banks Million $1 Billion Billion Billion Region Region Region Region Region Region 

FIRST QUARTER Preliminary 

(The way it is .. . ) 

Number of banks reporting ..... . . . .... . 12.593 9,611 2,612 327 43 1,084 1,958 2,807 2,987 2,285 1,472 Total ·assets .. . ... . . . . .. .. . .... . ... ... $3,310.65 $363.38 $627.11 $1,044.67 $1,275.48 $1,300.95 $490.91 $531.29 $211.60 $263.13 $512.76 Total deposits ............. . . .. ..... .. 2,543.29 323.31 539.67 TT5.15 905.17 930.72 383.08 422.97 171 .35 225.44 409.73 Net income /in millions) •• . ..•• • •••••••••• 6,278 742 1,427 1,no 2,338 1,670 906 1,151 613 306 1,632 Percentage of banks losing money ...... 10.2% 11.4% 5.4% 11.6% 13.9% 15.4% 10.9% 4.1% 5.4% 17.0% 16.3% Percentage of banks with earnings gains 46.5% 45.4% 50.1% 49.5% 46.5% 392% 49.0% 49.0% 44.8% 47.0% 46.1% 

Perfonnance Ratios (annualized) 

Yield on earning assets . .. . .. .. . ....... 11.27% 10.34% 10.50% 10.67% 12.48% 12.39% 10.49% 10.38% 10.53% 10.00% 11.08% Cost of funding earning assets ....... .. . 7.34 5.94 6.07 6.40 9.26 8.90 6.35 6.53 6.24 6.45 6.10 Net interest margin . ... .. ..... . .. . . .. . 3.93 4.40 4.43 4.27 323 3.49 4.13 3.86 4.29 3.54 4.98 

Net noninterest expense to earning assets . 2.00 2.78 2.57 1.96 1.48 1.72 2.30 2.03 1.87 2.27 2.30 Net operating cash flow to assets ....... 1.70 1.47 1.69 2.04 1.48 1.55 1.63 1.63 2.18 1.09 2.32 

Net operating income to assets . . ..... .. . 0.70 0.80 0.90 0.67 0.60 0.43 0.72 0.87 1.14 0.42 1.16 

Return on assets ...... . .......... .... . 0.76 0.82 0.92 0.68 0.74 0.52 0.75 0.87 1.16 0.47 1.28 Return on equity ................... . .. 12.08 9.14 12.11 10.61 15.18 9.25 10.67 12.52 14.97 7.60 20.11 

Net charge-offs to loans and leases ....... 1.29 0.46 0.54 1.40 1.74 1.91 0.71 1.09 0.89 1.14 0.70 

Loan loss provision to net charge-offs .. . . 87.68 13729 127.43 119.57 55.98 75.00 151 .10 74.98 105.78 92.62 119.38 

Condition Ratios 

Loss allowance to: 

Loans and leases ... ... .. . ..... . ... . 2.56% 1.69% 1.64% 1.97% 3.72% 3.46% 1.48% 1.62% 1.86% 2.89% 2.39% 

Noncurrent loans and leases ........... 81.67 77.55 76.16 81.15 83.69 77.89 85.21 89.64 96.98 74.14 89.26 

Noncurrent loans and leases plus 

other real estate to assets .... . ........ 2.35 1.79 1.83 1.93 3.12 3.11 1.40 1.29 1.47 3.22 2.39 

Equity capital ratio ................ .. . . . 6.40 9.00 7.64 6.49 4.97 5.61 7.11 7.02 7.83 6.36 6.50 

Primary capital ratio .... . .... . .......... 7.99 9.91 8.58 7.62 7.46 7.89 7.98 7.94 8.78 7.55 8.20 

Net loans and leases to deposits .... . .. . . 78.84 57.97 69.82 87.38 84.37 85.14 78.81 75.01 69.63 53.94 ffi.09 

Growth Rates (year-to-year) 

Assets ........ . .. . ....... .. . . . . . ..... 5.1% 7.3% 9.4% 8.9% 7.1% 3.1% 9.5% 5.0% 4.4% 1.8% 8.5% 

Equity capital ...... . .................. 4.9 4.9 10.5 8.4 4.2 -3.4 11 .5 6.7 3.8 10.8 15.2 

Net interest income ... . ......... .. .. . .. 1.2 2.8 5.6 7.1 0.2 --0.4 4.9 1.1 -1 .0 0.7 2.4 

Net income . .. ... ...... . ........ . ..... -13.4 -8.3 2.3 -26.9 -12.5 -38.8 -17.3 -16.8 -1 .7 282.9 21.6 

Noncurrent loans and leases plus 

other real estate owned .... . . . . . .... .. 12.2 4.5 18.6 45.9 8.5 30.3 46.0 11 .7 -4.8 -30.0 --0.1 

Net charge-offs ......... . ...... . ... . . . . 65.7 3.0 11 .7 83.3 164.9 230.1 82.5 89.8 -4.4 -35.2 -18.1 

Loan loss prov1s1on . . . . . . . . . . . . . . . . . . . . 59.7 3.0 2.5 98.5 85.4 138.0 88.2 55.7 -13.1 -35.0 9.3 

.. 

PRIOR FIRST QUARTERS 

(The way it was ... ) 

Return on assets .... . ............ 1989 0.93% 0.92% 0.97% 0.93% 0.90% 0.87% 0.99% 1.10% 1.21% 0.12% 1.14% ................. 1987 0.72 0.72 0.85 0.84 0.55 0.73 1.08 0.95 0.84 0.10 0.52 . .. . . .. . . .. . . .... 1985 0.75 0.92 0.91 0.78 0.60 0.78 1.14 0.83 0.82 0.59 0.52 

Equity capital ratio ............... 1989 6.41 8.92 7.52 6.40 5.10 5.99 6.98 6.91 1.88 5.84 6.12 .. . ..... . . . .. .... 1987 6.43 8.54 7.39 6.16 5.32 6.01 6.85 7.05 7.39 6.55 5.96 .... . . . ..... . . . .. 1985 629 8.65 7.25 5.95 4.92 5.65 6.83 6.91 7.62 7.00 5.67 

Noncurrent loans and leases plus 

other real estate to assets ...... . 1989 2.21 1.92 1.71 1.47 3.13 2.46 1.05 1.21 1.61 4.68 2.60 . . . .... .. . .. .. . . . 1987 2.61 2.36 1.98 1.82 3.73 2.58 1.10 1.55 2.25 4.63 3.90 . . . . . . . .. ... . .. .. 1985 2.09 2.00 1.65 1.74 2.67 1.84 1.12 1.73 2.32 2.48 3.34 

Net charge-offs to loans and leases . 1989 0.74 0.54 0.60 0.81 0.79 0.61 0.42 0.61 0.95 1.68 0.96 .... . .... . . . . . ... 1987 0.75 0.86 0.76 0.62 0.83 0.56 0.45 0.45 1.43 1.53 1.00 .. . .. . ......... . . 1985 0.58 0.72 0.50 0.54 0.60 0.37 0.35 0.48 1.08 0.93 0.82 

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

Puerto Rico, Rhode Island, Vermont 

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 

4 
Table IV. Full Year 1989 Bank Data (Dollar figures In bl/lions, ratios In %) 

Asset Size Distribution Geographic Distribution 

Less $100 Million Greater EAST WEST 

All Banks 

than $100 

Million 

to 

$1 Billion 

$1-10 

Billion 

than $10 

Billion 

Northeast 

P.egion 

Southeast 

P.egion 

Central 

Region 

Midwest 

Region 

Southwest 

Region 

West 

Region 

Number of banks reporting ..... . ........ 

Total assets ..... .. ··· · ··· · · .. ... .... . Total. deposits .. .. . .. .. . . ... ........ . .. 

Net income (in millions) .... . . .. ......... 

Percentage of banks losing money ...... . 

Percentage of banks with earnings gains .. 

12,707 9,722 

$3,299.18 $365.62 

2,548.49 325.16 

15,692 2,755 

12.1% 13.3% 

63.9% 62.6% 

2,f:/J7 334 44 

$625.24 $1,0CiG.02 $1,252.30 

536.27 791 .91 895.14 

5,356 6,345 1,237 

7.6% 11 .4% 27.3% 

69.8% 61 .4% 38.6% 

1,087 

$1,292.63 

934.34 

-208 

15.8% 

59.1% 

1,962 2,837 3,016 

$483.87 $533.70 $214.21 

381 .42 427.18 171 .88 

4,034 5,145 2,072 

14.0% 4.5% 4.9% . . 63.0% 67.7% 61 .8% 

2.325 

$267.34 

225.14 

-189 

24 .4% 

61 .3% 

1,480 

$507.43 

408.53 

4,838 

16.7% 

70.1% 

Performance Ratios 

Yield on earning assets . . . . . ... . ..... . . . 

Cost of funding earning assets ... .. .. . . . . 

Net interest margin ........... ......... Net noninterest expense to earning assets . 

Net operating cash flow to assets . .. . . .. . 

Net operating income to assets . . .. . . . ... 

Return on assets . . ........ . .... . .. . . . . 

Return on equity .. ... ... .... ..... .. ... Net charge-offs to loans and le~ses . ...... 

Loan loss provision to net charge-offs . . ... 

11 .44% 

7.40 

4.05 

2.06 

1.74 

0.46 

0.50 

7.82 

1.16 

135.51 

10.53% 

6.00 

4.53 

2.80 

1.57 

0.75 

0.78 

8.59 

0.74 

120.37 

10.86% 

6.26 

4.59 

2.58 

1.82 

0.89 

0.90 

11 .97 

0.74 

121 .87 

11 .07% 

6.n 

4.30 

2.19 

1.87 

0.61 

0.64 

10.11 

1.06 

140.30 

12.35% 

8.96 

3.40 

1.44 

1.66 

0.05 

0.10 

2.02 

1.54 

137.59 

12.35% 

8.73 

3.62 

1.74 

1.65 

-0.05 

-0.02 

-0.28 

1.32 

172.42 

10.80% 

6.61 

4.20 

2.36 

1.63 

0.85 

0.88 

12.56 

0.59 

134.83 

10.66% 

6.69 

3.97 

1.98 

1.n 

1.02 

1.00 

14.61 

0.91 

82.76 

10.97% 

6.50 

4.46 

2.10 

2.12 

0.97 

1.01 

13.09 

1.20 

99.12 

10.18% 

6.66 

3.52 

2.17 

1.15 

--0.13 

--0.07 

-127 

1.92 

122.34 

11 .43% 

6.25 

5.18 

2.59 

2.23 

0.91 

1.00 

16.23 

1.18 

98.24 

Condition Ratios 

Loss allowance to: 

Loans and leases ... .. . . ...... . .. . ... 2.61% 1.66% 1.58% 1.98% 3.89% 3.57 % 1.41% 1.71% 1.83% 2.90% 2.39% 

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

Noncurrent loans and leases plus 

86.47 79.65 79.55 87.26 88.41 87.70 94.11 100.85 100.13 55.17 89.55 

other real estate to assets ... . ........ . 

Equity capital ratio .. .......... .. . ...... 

2.28 

6.21 

1.75 

8.94 

1.68 

7.47 

1.84 

6.12 

3.12 

4.86 

2.82 

5.55 

1.21 

6.94 

1.18 

6.86 

1.40 

7.61 

4.40 

5.55 

2.36 

6.26 

Primary capital ratio ... ... . .. ... . ...... . 7.92 9.87 8.45 7.45 7.48 7.91 7.85 7.91 8.75 7.11 8.07 

Net loans and leases to deposits ......... 78.63 58.26 69.96 85.90 84.79 85.18 78.28 73.46 71.28 56.17 84 .86 

Growth Rates (year-to-year) 

Assets ..... . ........... . ............. 5.4% 6.4% 9.5% 9.8% 5.8% 3.9% 10.0% 5.4% 1.9% 2.2% 8.0% 

Equity capital ... . ... .. .. .. . . .. . ... . . .. 4.3 5.3 10.1 8.6 0.8 -2.6 10.1 7.1 4.2 0.4 14.7 

Net interest income ............. . .. . ... 4.6 8.7 12.3 10.5 0.1 02 7.0 6.6 3.1 --0.2 12.5 

Net income ........ . ... . ........... ... -36.8 19.0 13.4 -18.3 -89.1 N/M -1 .1 -0.7 13.5 NIM 31 .6 

Noncurrent loans and leases plus 

other real estate owned ........... . . . . 12.3 3.1 21.4 38.3 8.3 24.7 30.5 8.4 -5.8 -1 .1 -4.1 

Net charge-offs ...... . ... . . . .... . .... . . 22.7 02 19.3 12.3 46.9 67.4 4.2 32.7 -4.9 -23.8 3.6 

Loan loss. prevision ........ . ....... . ... 80.5 -0.1 19.8 64.1 213.1 217.4 30.3 32.3 2.0 -10.9 25.1 

PRIOR FULL YEARS 

(The way it was ... ) 

Return on assets ... . ..... . ....... 1988 0.82% 0.64% 0.75% 0.79% 0.95 % 0.98% 0.98% 1.07 % 0.90 % --0.733⁄4 0.83% ... . ......... . . .. 1986 0.63 0.46 0.66 0.76 0.57 0.78 1.02 0.88 0.73 --0.39 0.34 . ... . ... . ....... . 1984 0.65 o.n 0.89 0.78 0.35 0.69 0.98 0.49 0.78 0.65 0.42 

Equity capital ratio . . ............. 1988 6.28 8.72 7.23 6.15 5.10 5.93 6.93 6.75 7.45 5.65 5.90 . . .. . ... . ........ 1986 6.20 8.35 6.97 5.95 5.14 5.81 6.57 6.79 7.12 6.39 5.67 ... . ............. 1984 6.15 8.53 7.06 5.71 4.84 5.53 6.65 6.68 7.38 6.86 5.57 

Noncurrent loans and leases plus 

other real estate to assets . ...... 1988 2.14 1.91 1.72 1.53 2.96 2.35 1.02 1.15 1.52 4.55 2.66 ... . . . . .... ..... . 1986 1.94 224 1.89 1.44 2.30 1.55 0.96 1.30 2.01 4.10 2.98 .. .. ...... . ... . . . 1984 1.97 0.70 0.86 1.41 2.f:/J 1.65 0.66 1.29 1.13 1.57 2.64 

Net charge-offs to loans and leases .1988 1.00 0.89 0.78 1.06 1.08 0.82 0.63 0.73 1.33 2.39 1.27 ..... . ..... ..... . 1986 0.98 1.57 1.08 0.79 0.92 0.62 0.62 0.70 2.14 2.12 1.25 ......... . ...... . 1984 0.76 0.92 0.63 0.65 0.81 0.39 0.43 1.14 1.07 1.13 0.94 

NIM-not meaningful 

5