--

First Quarter, 1994 

FDIC 

Division of Research 

& Statistics 

Don Inscoe 

Associate Director, 

Statistics Branch 

(202)898-3940 

Tim Critchfield 

(202) 898-8557 

Jim McFadyen 

(202) 898-7027 

Ross Waldrop 

(202) 898-3951 

The FDIC 

uarte r 1Y-_____An_dr_ew_c_.H_o_ve_,J_r.,_C_ha_irm_a_n_ 

anking Rofile 

INSURED COMMERCIAL BANK PERFORMANCE - FIRST QUARTER, 1994 

• Commercial Banks Earn $11. 1 Billion In First Quarter 

• Improved Asset Quality Lifts Core Earnings As Credit Losses Fall 

To Nine-Year Low 

• Loans To Commercial Borrowers Grow Throughout U.S . 

• No Banks Fail During The Quarter 

Insured commercial banks reported net income of $11.1 

billion for the first quarter of 1994. Earnings were below 

the record $11.5 billion earned in the third quarter of last 

year, but they represent an increase of $254 million from 

first-quarter 1993 earnings. The year-to-year improvement in net income was achieved despite one-time 

accounting changes that added $1 .8 billion in extraordinary gains to earnings a year ago, and a $436-million 

decline in large banks' foreign exchange trading income. Net operating income reached a new quarterly 

record of $10.72 billion, slightly above the $10.69 billion 

registered in the third quarter of last year. Lower loanloss provisions and overhead expenses, as well as 

increased noninterest income, were the main factors 

responsible for the record operating profits. The 

average return on assets for the quarter was 1.17 percent, down slightly from 1.18 percent in the previous 

quarter, and 1 .23 percent a year earlier. Fewer than one 

bank in twenty was unprofitable in the first quarter, but 

a majority of smaller banks saw their earnings decline 

from a year ago. 

Chart A - Quarterly Net Income of FDIC-Insured 

Commercial Banks, 1990 - 1994 $ Billions 

D Net O 11.5 11 .1 perating Income 10.a I 10.a_ ■ Securities and Other Gains, Net 

10 1,i ·-

6.2 

g 5.5 

5 I 4,6 

I 4.3 

3.6 

111111 I 3.o 

I 

0.7 

0 '-'---.U.....U....LJ.~ .....U.....J.J.....U....U.....U....J.J.....U....U.....ll...ll.-u.....Ju.....J-'--1.J 

1 2 3412 34 12 34 1 234 1 

1990 1991 1992 1993 ' 94 

Loan-loss provisions fell for the sixth consecutive 

quarter, as banks set aside $2. 7 billion in the first quarter 

to cover future credit losses. This was $2 billion less than 

a year ago, providing the single largest year-to-year 

boost to industry earnings. Total noninterest expense of 

$34.6 billion was $2.1 billion lower than in the previous 

quarter, and $429 million below the level of a year ago. 

This is the first time since banks began reporting 

quarterly earnings in 1983 that the industry has 

registered a year-to-year decline in noninterest expense. The decline was primarily due to reduced losses 

at banks in the Northeast and West regions on sales of 

loans and foreclosed properties. 

Noninterest income continued to expand in the first 

quarter, although the rate of increase slowed. Reduced 

gains on foreign exchange trading were largely responsible for the slowdown. Banks earned $18.6 billion in 

non interest income in the first quarter, an increase of 5.5 

percent over the first quarter of 1993. In contrast, noninterest income grew at a 14.2 percent rate last year. 

Net interest income was $527 million higher in the first 

quarter than a year earlier, due to an increase of 6.7 

percent in interest-earning assets. Net interest margins 

narrowed for the fifth consecutive quarter, as asset 

yields declined more rapidly than average funding costs. 

The average net interest margin in the first quarter was 

4.26 percent, the lowest level since the third quarter of 

1991. The decline in both average yields and funding 

costs came despite two 25 basis-point increases in the 

target fed funds rate during the quarter. 

Chart B - Quarterly Net Interest Margins of 

FDIC-Insured Commercial Banks, 1986 - 1994 

Net Interest Margin (%) 

5.0 W-.LLl 

Assets< $100 Million 4.54% i----,--

l" ~---, ~ ..~ ~ 4.5 t --\.,, -~ ,, ,.,.i- .... \ u / .. ~ 

- ' _, 

4 - .0 

.., 

I~ _, \~ ill~-- -~ IJI 

Assets > $100 Million 4.23% 

3.5 I I 11 11 rnn

123 4 12 341 2 3 4 1 2 3 41 23412 34123412341 

' 86 '87 ' 88 ' 89 ' 90 ' 91 ' 92 ' 93 ' 94 

Requests for copies of and subscriptions to the FDIC Quarterly Banking Profile should be made through the FD/C's 

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

For assistance contact: Section508@fdic.gov
Noncurrent loans at commercial banks declined for the 

twelfth consecutive quarter, to $40.3 billion, a reduction of 

$2.4 billion from the previous quarter, and $18.6 billion less 

than a year ago. Noncurrent loans are now less than half the 

peak level of $83.3 billion reported at the end of the first 

quarter of 1991, and are at their lowest level since the end 

of 1982. Inventories of foreclosed properties also continued 

to decline, falling for the sixth consecutive quarter, to $15 

billion. Although the greatest improvements in asset quality 

occurred at banks in the Northeast and West regions, banks 

in other areas of the U.S. also reported reduced levels of 

troubled assets. The rapid pace of asset quality improvement 

has resulted in lower loan losses and enabled the industry 

to cut its provisions for future losses. The $2.7 billion 

provision in the first quarter was the lowest quarterly total 

since the first quarter of 1984, when banks set aside $2.1 

billion. The $2.6 billion in net loan charge-offs taken in the 

first quarter was the lowest amount since banks charged off 

$2.2 billion in the first quarter of 1985. 

Total assets grew by $137 billion in the first quarter, with 

much of the growth consisting of a $99-billion increase in 

banks' trading account assets. This increase stemmed from 

changes in accounting for the on-balance-sheet amounts 

associated with certain off-balance-sheet derivatives contracts (FASS Interpretation 39; see Notes to Users, p. 18). 

Banks' securities holdings grew by $19 billion in the first 

quarter. Anew accounting rule (FASS Statement 115) affecting the reported value of over half of all securities held by 

banks meant that the amount of securities reported at the 

end of the first quarter was $309 million less than would have 

been reported under the old rules. The only loan categories 

exhibiting strong growth were commercial and industrial 

loans, which increased by $10.6 billion, and consumer installment loans, which grew by $5.7 billion. The growth in 

commercial and industrial loans was the largest quarterly 

increase since the fourth quarter of 1986, and marks the 

second consecutive quarter that commercial lending has 

shown strong growth. In both the first quarter and the fourth 

quarter of 1993, commercial and industrial loans have increased in all regions. Real estate loans registered only 

nominal growth of $104 million during the quarter, as banks' 

holdings of residential mortgage loans declined by $1.4 

billion, and loans for construction and land development fell 

by $2.4 billion. Only real estate loans secured by commercial 

properties showed any significant growth during the quarter, 

increasing by $2.6 billion (1 percent). Other assets increased 

by $10.4 billion as a result of an increase in accounts 

receivable related to sales of securities. 

Equity capital increased by $4.2 billion during the first 

quarter, the smallest quarterly increase since the fourth 

quarter of 1991, when equity grew by $1.4 billion. Retained 

earnings of $4.9 billion were 25 percent less than a year ago, 

as dividend payments to shareholders rose by 44 percent, 

to $6.2 billion. Loan-loss reserves grew slightly from yearend levels, but ended the quarter $1 .7 billion lower than a 

year earlier. The industry's "coverage ratio" continues to set 

new records, as noncurrent loans decline. At the end of the 

first quarter, banks held $1.31 in reserves for every dollar of 

noncurrent loans. High coverage levels have prompted a 

growing number of banks to take negative loan-loss 

provisions, and put some reserves back into earnings. Ayear 

ago, 301 banks reported negative loss provisions totaling 

$50.6 million; in the first quarter, 347 banks took negative 

loss provisions totaling $167.3 million. 

At the end of March, there were 10,840 commercial banks 

reporting financial results, a net decline of 118 from the end 

of 1993, and 490 fewer banks than reported a year earlier. 

There were 127 mergers, accounting for almost all of the 

reduction in the number of commercial banks in the first 

quarter, since no commercial banks failed. This is the first 

time since the second quarter of 1978 that no commercial 

banks have failed in a quarter. There were 11 new charters 

issued. The number of banks on the FDIC's "Problem List" 

fell for the ninth consecutive quarter, to 383, while the 

combined assets of "problem" banks declined for the eighth 

consecutive quarter, to $53 billion. 

Commercial and Industrial Loan Growth Rates* 

March 1993 - March 1994 

Northeast 

7 .7 

,o 

~~ Puerto Rico 

4.0 

Hawaii 

-5.4 

t) c;:::, 

Southeast 

D 

D 

Less than 0% 

Between O and 5% 

- Greater than 5% 

*Growth rates reflect adjustments for the consolidation of one DC bank with $3.4 billion in assets into a bank domiciled in Maryland 

FDIC Quarterly Banking Profile 

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

1994* 1993* 1993 1992 1991 1990 1989 

Return on assets (%)............................... .. .......... ..... . 1.17 1.23 1.20 0.93 0.53 0.48 0.49 

Return on equity(%) ... ..... .. ... .. ............. ...... ....... .. .... . 14.82 16.10 15.37 12.99 7.94 7.45 7.71 

Core capital (leverage) ratio(%) .............................. . 7.62 7.49 7.66 7.20 6.49 6.17 6.09 

Noncurrent assets plus 

other real estate owned to assets(%) ..................... 1.46 2.42 1.61 2.54 3.02 2.94 2.30 

Net charge-offs to loans (%) ....... ........................... .... 0.48 0.85 0.84 1.27 1.59 1.43 1.16 

Asset growth rate(%).. .. ............................................ 9.39 2.26 5.72 2.18 1.21 2.73 5.38 

Net operating income growth(%) .............. ................ 28.92 26.99 35.66 92.44 -0.63 2.53 -38.70 

Number of institutions reporting ................................ 10,840 11 ,330 10,958 11,462 11,921 12,343 12,709 

Percentage of unprofitable institutions...................... 4.21 5.16 4.71 6.85 11.59 13.44 12.50 

Number of problem institutions............................ ...... 383 671 426 787 1,016 1,012 1,092 

Ass ets of problem institutions (in billions)................. $53 $377 $242 $408 $528 $342 $188 

Number of failed/assisted institutions........................ 0 8 42 100 108 159 206 

*Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 31. 

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

(dollar figures in millions) Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

1994 1993 1993 93:1-94:1 

Number of institutions reporting .................................. .. .......... . 10,840 10,958 11,330 -4.3 

Total employees (full-time equivalent) ............ .. .......... .. .......... . 1,488,488 1,493,500 1,467,874 1.4 

CONDITION DATA 

Total assets ......................................... ... .................... .. .......... . $3,843,219 $3,705,953 $3 ,513,464 9.4 

Loans secured by real estate ............... .................... ........ . 922,952 922,857 869,835 6.1 

Commercial & industrial loans ...... ... ........................... .. ..... 549,423 538,835 532,234 3.2 

Loans to individuals ...................................................... ..... 421 ,793 419,004 381 ,779 10.5 

Farm loans ................................................... ........ ...... .. .. ... . 36,007 37,134 33,158 8.6 

Other loans & leases ... ..................................................... . 238,793 238,396 214,276 11.4 

Less: Unearned income .................... ........... ..................... . 6,199 6,744 8,227 -24.7 

Total loans & leases ........... .... ......... .............. .. ................... . 2,162,768 2,149,481 2,023,057 6.9 

Less: Reserve for losses ...... ....... .... ....... ....... ....... ....... ....... . 52,903 52,737 54,619 -3.1 

Net loans & leases......... ............. ....................... .................... 2,109,865 2,096,744 1,968,438 7.2 

Securities ............................................. .. ............................... . 855,602 836,590 802,376 

Other real estate owned ...................................................... .. 14,987 16,255 25,181 -40.5 

Goodwill and other intangibles ................. ........... ................. . 18,406 18,027 16,187 13.7 

All other assets .......... ........................................................... . 844,359 738,336 701,282 

Total liabilities and capital. ............ .............. ................ ..... ........ 3,843,219 3,705,953 3,513,464 9.4 

Noninterest-bearing deposits .. .............................................. . 549,512 571 ,822 490,586 12.0 

Interest-bearing deposits ...................................................... . 2,207,368 2,182,260 2,164,923 2.0 

Other borrowed funds ................. ....... .... ................... ......... ... . 538,319 497,834 430,461 

Subordinated debt.. .... ..... ....... .............................. ................ . 37,227 37,372 34,446 8.1 

All other liabilities ............... ....................................... ............ . 209,998 120,079 119,458 

Equity capital. ....................................................................... . 300,795 296,587 273,590 

Loans and leases 30-89 days past due ................. ................. . 29,324 28,667 34,084 -14.0 

Noncurrent loans and leases................. ..... ............................ . 40,345 42,706 58,907 -31.5 

Restructured loans and leases.. ....... ..................................... .. 6,219 10,176 11 ,141 -44.2 

Direct and indirect investments in real estate ...... ..... ............. . . 611 543 475 28.5 

1-4 Family residential mortgages ..... ...................................... . 514,413 515,816 464,878 10.5 

Mortgage-backed securities .............................................. .... .. 331,720 336,803 323,103 

Earning assets.. ................................ .. ....................... ............ .. 3,312,275 3,290,602 3,104,627 6.7 

Long-term assets (5+ years) ..... ............................................. . 533,809 527,439 510,772 4.5 

Volatile liabilities ... ........ ... ..................... ......... ....... ................. .. 1,043,137 NIM NIM 

Foreign office deposits .............. ............ ................ ................. . 355,877 329,997 304,439 16.9 

Unused loan commitments ................................ ...................... 1,536,464 1,456,376 1,297,478 18.4 

Off-balance -sheet derivatives ....................... .................. .. 13,916,661 11,875,428 9,769,406 42.5 

Preliminary 

Full Year Full Year 1st Qtr 1st Qtr %Change 

INCOME DATA 1993 1992 %Change 1994 1993 93:1-94:1 

Total interest income... ........................................ . $245,090 $255,224 -4.0 $60,576 $61 ,196 -1.0 

Total interest expense........................................... 105,758 121,803 -13.2 25,423 26,569 -4.3 

Net interest income............................................. 139,332 133,421 4.4 35,153 34,626 1.5 

Provision for loan losses.................. ..................... 16,767 26,043 -35.6 2,728 4,746 -42.5 

Total noninterest income............ ........................... 74,965 65,645 14.2 18,636 17,669 5.5 

Total noninterest expense............................. ........ 139,660 130,963 6.6 34,611 35,040 -1 .2 

Securities gains (losses)....................................... 3,061 4,007 -23.6 559 992 -43.6 

Applicable income taxes........................................ 19,874 14,484 37.2 5,910 4,492 I 31 .6 

Extraordinary gains, net ........... .. .. :............. .......... 2,058 409 403.0 (36) 1,798 NIM 

Net income..... .......... .................. ....................... .. 43,116 31,992 34.8 11 ,062 10.808 2.4 

Net charge-offs...................................................... 17,495 25,646 -31.8 2,599 4,321 -39.9 

Cash dividends.............. ........... . ... ........................ 22,021 14,129 55.9 6,209 4,300 44.4 

Net operating income............. ... ........................ 38,850 28,638 35.7 10,720 8,315 28.9 

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

FDIC Quarterly Banking Profile 

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

Asset Size Distribution Geooraphic Distribution by Reoion 

Less $100 Million $1 Billion Greater East I West 

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

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

Number of institutions reporting .... ....... ... . 10,840 7,674 2,787 325 54 870 1,806 2,383 2,687 1,920 1,174 

Total assets (in billions) .... .. .......... .......... .. $3,843.2 $330.7 $682.1 $1,062.4 $1,768.0 $ 1,497.4 $608.2 $625.9 $250.6 $296.8 $564.4 

Total deposits (in billions) .......... ....... ......... 2,756 .9 290.2 576.9 774.5 1,115.3 944.2 459.7 466.5 197.4 245.4 443.7 

Net income (in millions) .... .................... ..... 11 ,062 942 2,027 3,799 4,295 4,054 1,801 1,804 894 897 1,613 

% of unprofitable institutions ..................... 4.2 4.8 2.9 1.5 0.0 5.4 3.9 2.9 2.7 3.5 11 .2 

% of institutions with earnings gains .. ....... 46.0 44.5 47 .6 64 .6 64 .8 51 .1 51.1 44.0 44 .7 38.6 53.3 

Performance Ratios (annualized, 3⁄4) 

Yield on earning assets ............................. 7.34 7.30 7.21 7.33 7.42 7.87 6.96 6.98 7.27 6.56 7.29 

Cost of funding earning assets .... .......... .... 3.08 2.76 2.62 2.60 3.68 3.96 2.68 2.75 2.71 2.37 2.27 

Net interest margin .................... ................ 4.26 4.54 4.59 4.73 3.74 3.92 4.28 4.23 4.56 4.19 5.02 

Noninterest income to earning assets ... .... 2.26 1.18 1.42 2.56 2.65 2.89 1.70 1.59 2.35 1.74 2.31 

Noninterest expense to earning assets .. ... 4.19 3.85 3.90 4.44 4.23 4.34 3.87 3.70 4.31 3.98 4.81 

Net operating income to assets ................. 1.14 1.12 1.16 1.40 0.96 1.07 1.16 1.14 1.37 1.20 1.14 

Return on assets ... .... ... ..... ..... .. ........ ....... . 1.17 1.14 1.19 1.43 1.01 1.12 1.20 1.17 1.42 1.22 1.15 

Return on equity ........................................ 14.82 11 .64 13.54 17.44 14.40 15.35 14.97 14.40 16.37 14.67 13.32 

Net charge-offs to loans and leases .......... 0.48 0.13 0.27 0.68 0.50 0.74 0.24 0.28 0.41 0.07 0.58 

Loan loss provision to net charge-offs ...... 104.98 206.59 133.31 104.15 94.61 101 .63 113.88 143.01 122.62 102.35 86.73 

Condition Ratios (3⁄4) 

Loss allowance to: 

Loans and leases.. .................................. 2.45 1.74 1.86 2.52 2.77 2.97 1.88 1.89 2.00 1.84 2.89 

Noncurrent loans and leases .......... ........ 131 .13 134.22 125.71 147.13 123.78 115.15 166.69 165.59 157.59 165.73 122.40 

Noncurrent assets plus 

other real estate owned to assets.. ......... 1.46 1.02 1.24 1.35 1.69 1.90 0.98 0.87 0.97 0.84 1.97 

Equity capital ratio.. ................................... 7.83 9.87 8.86 8.27 6.78 7.12 7.99 8.07 8.72 8.30 8.60 

Core capital (leverage) ratio ................... ... 7.62 9.82 8.75 7.94 6.56 7.03 7.81 7.98 8.61 8.01 7.92 

Net loans and leases to deposits ......... ..... 76 .53 59.04 66.70 82.29 82.17 80.42 77 .87 77.93 72.42 56 .84 78 .10 

Growth Rates (year-to-year,3⁄4) 

Assets ... .................................................. .. 9.4 - 12.6 9.3 9.0 6.8 4.9 5.4 . . . . . . . Equity capital ....................................... ... ... - -

Net interest income................................... 1.5 - 1.3 3.1 0.8 7.2 1.2 -0.9 

Net income ...... ............... ......... .................. 2.4 - - 6.8 12.4 -2.7 9.2 -32.3 13.9 

Noncurrent assets plus 

other real estate owned..................... ...... -34 .2 - - -35 .4 -34.2 -29.2 -13.4 -34.9 -36.9 

Net charge-offs .... ............................. ......... -39.9 - - - -42.3 -36.2 -42.0 -21.5 -63.2 -35.3 

Loan loss provision ........................... .. .... .. -42 .5 - - -39.1 -50 .2 -43.4 -30 .6 -68 .8 -48 .1 

PRIOR FIRST QUARTERS 

(The way it was . .. ) 

Number of institutions .......................1993 11,330 8,215 2,741 322 52 911 1,877 2,497 2,762 2,008 1,275 

.............................. .. ......... 1991 12,249 9,178 2,702 323 46 1,053 1,942 2,697 2,937 2,157 1,463 

..................... .................... 1989 13,004 10,187 2,446 329 42 1,090 1,944 2,905 3,078 2,491 1,496 

Total assets (in billions) .. ................... 1993 $3,513.5 $344.8 $669.3 $1,004.4 $1,495.0 1$1,329.6 $556.4 $574.3 $234.7 $283.0 $535 .5 

................................ ......... 1991 3,351 .1 359.1 652.9 1,050.5 1,288 .6 1,266.5 506.5 544.6 225.6 264.0 543.9 

.......................... ........... .... 1989 3,149 .7 375.2 578.7 987.3 1,208.5 1,261 .5 448.3 506.1 202.7 258.5 472.6 

Return on assets (%) ....................... . 1993 1.23 1.28 1.26 1.26 1.19 1.15 1.16 1.28 1.38 1.90 1.05 

......................................... 1991 0.65 1.16 0.83 0.65 0.43 0.39 0.60 0.92 1.09 0.62 0.91 

...................... ...................1989 0.93 0.92 0.96 0.94 0.91 0.87 0.99 1.09 1.25 0.12 1.16 

Net charge-offs to loans & leases {%) 

............. .. .. ..... ..... .......... ....1993 0.85 0.29 0.43 0.94 1.09 1.33 0.42 0.52 0.58 0.21 0.91 

........................... .............. 1991 1.20 0.46 0.74 1.54 1.31 1.58 0.94 0.70 0.92 1.24 1.14 

.........................................1989 0.74 0.54 0.60 0.81 0.79 0.61 0.42 0.61 0.95 1.68 0.96 

Noncurrent assets plus 

OREO to assets (%) ......................1993 2.42 1.38 1.69 2.08 3.22 3.32 1.63 1.34 1.20 1.35 3.28 

........ ................................. 1991 3.23 1.78 2.11 3.09 4.32 4.80 2.39 1.77 1.58 2.77 2.73 

......................................... 1989 2.23 1.94 1.76 1.51 3.13 2.46 1.14 1.21 1.62 4.69 2.65 

Equity capital ratio (%) .... .. ........... ..... 1993 7.79 9.66 8.54 8.05 6.84 7.03 7.81 8.18 8.85 8.13 8.58 

...................... ................... 1991 6.66 9.05 7.84 6.66 5.39 5.91 7.14 7.26 7.94 6.71 6.78 

................. ........................1989 6.41 8.92 7.52 6.40 5.11 5.99 6.98 6.91 7.89 5.86 6.13 

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

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

Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 First Quarter, 1994 
TABLE IV-A. Full Year 1993, FDIC-Insured Commercial Banks 

Asset Size Distribution Geographic Distributi on by Region 

Less $100 Million $1 Billion Greater East I West 

All 

Institutions 

than $100 

Million 

to 

$1 Billion 

to 

$1 OBillion 

than $10 

Billion 

Northeast Southeast Central I Midwest Southwest West 

Number of institutions reporting .... ............ 10,958 7,788 2,788 327 55 878 1,818 2,412 2,706 1,937 1,207 

Total assets (in billions) .. .... ....................... $3,706.0 $335.0 $677 .0 $1,063.5 $1,630.5 ~1,399.7 $594.5 $612.4 $251.3 $293.8 $554 .3 

Total deposits (in bil lions) .................. ..... ... 2,754.1 294.5 576.4 782.9 1,100.3 940.7 456.1 468.5 200.0 246.1 442.5 

Net income (in millions) .... ......................... 43,1 16 3,738 7,666 13,448 18,264 15,208 6,774 7,607 3,503 3,963 6,060 

3⁄4 of unprofitable institutions ................. .... 4.7 4.9 4.1 5.8 0.0 9.3 5.0 3.1 1.8 2.5 14.2 

3⁄4 of institutions with earnings gains ..... .... 66 .7 63 .3 74 .5 80 .1 85.5 78 .1 73 .6 69 .2 58.1 63.4 68 .0 

Performance Ratios(%) 

Yield on earnin g assets .... ..... ... .... ........... 7.74 7.67 7.58 7.54 7.97 8.29 7.37 7.39 7.54 6.93 7.73 

Cost of funding earning assets .... ............. 3.34 2.98 2.85 2.74 4.04 4.31 2.87 2.95 2.97 2.57 2.46 

Net interest margi n .... ....... .. ..... ..... ........... 4.40 4.69 4.73 4.80 3.93 3 .98 4.49 4.43 4.57 4.36 5.27 

Noninterest income to earning assets ....... 2.37 1.1 2 1.45 2.59 2.90 2.94 1.72 1.79 2.56 1.73 2.54 

Noninterest expense to earning assets .... . 4.41 3.91 4.05 4.63 4.54 4.60 4.01 3.88 4.37 4.20 5.11 

Net operating income to assets ................. 1.09 1.06 1.09 1.24 0.99 0.94 1.15 1.21 1.38 1.14 1.08 

Return on assets ....................................... 1.20 1.15 1.17 1.32 1.16 1.12 1.20 1.29 1.44 1.39 1.12 

Return on equity .. .. ....................... .. .. ......... 15.37 11.75 13.60 16.32 16.60 15.70 15.19 15.88 16.47 17.12 12.94 

Net charg e-offs to loans and leases.. .... ... 0.84 0.35 0.51 0.92 1.02 1.27 0.43 0.51 0.61 0.28 0.96 

Loan loss provision to net charge-offs ..... 95.84 122.70 118.44 106.69 82.80 89 .20 116.43 120.46 113.82 45.26 93 .88 

Condition Ratios(%) 

Loss allowance to : 

Loans and leases ....... ................. .. •........ 2.45 1.74 1.86 2.48 2.82 3 .00 1.90 1.87 1.94 1.83 2.86 

Noncurrent loans and leases ................ .. 123.49 132.51 122.89 139.87 114.44 110.02 155.00 157.14 152.01 159.83 111 .32 

Noncurrent assets plus 

other real estate owned to assets ........... 1.61 1.05 1.29 1.42 1.97 2.15 1.08 0.93 0.99 0.92 2.19 

Equity capital ratio ... .... ..... .......... .. ...... ..... .. 8.00 9.77 8.74 8.13 7.25 7.48 8.02 8.12 8.68 8.26 8.74 

Core capital (leverage) ratio .....................• 7.66 9.73 8.58 7 .81 6.75 7.24 7.75 7.94 8. 45 7.79 7.87 

Net loans and leases to deposits .............. 76.13 58.94 66 .24 81.43 82.15 79.96 77 .03 76 .77 71.98 56 .79 79 .04 

Growth Rates (year-to-year,%) 

Asse ts ..... .. ..... ......................................... 5.7 - - 7.0 8.1 5.3 3.8 4.0 2.3 

Equity capital.. .... ............. '' .................... .•. 12.6 - - 15.5 14.1 8.8 6.9 17.5 9.5 

Net interest income ............ .............. ... ... ... 4.4 3.7 5.8 3 .9 7 .0 7.0 3.0 

Net income....................... ..................... ... 34.8 - 44.2 29.1 31 .1 14.8 29.1 41 .7 

Noncurrent assets plus 

other real estate owned ... ...................... .. -33.1 - -35.1 -28 .0 -27 .7 -13 .2 -36.5 -35 .3 

Net charge-offs ............. ..... ...................... .. -31.8 - - -27 .8 -44.9 -44.8 -17.2 -54 .6 -25 .7 

Loan loss provision ................... ... ... ... ...... -35.6 - -33. 6 -39.6 -39.2 -18.6 -76.9 -33.8 

PRIOR FULL YEARS 

(The way it was . . . ) 

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

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

······················· ···· - ············1988 13,1 23 10,292 2,468 323 40 1,080 1,945 2,927 3, 109 2,557 1,505 

Total assets (in billions) .. .... .. ...... .. ... .. 1992 $3,505.5 $346.0 $680.1 $1 ,034.1 $1 ,445.3 $1,307.6 $550 .0 $581 .5 $242.0 $282 .6 $541.7 

···· ····· ······················ ··········1990 $3,389.5 $359 .6 $655.6 $1,044.4 $1 ,330.0 $1,290.5 $507.8 $551.7 $231 .2 $267.6 $540 .8 

......................................... 1988 $3, 130.8 $378 .6 $592.8 $996.9 $1,162.4 $1,243.4 $439 .9 $506 .2 $210.1 $261 .6 $469 .6 

Re turn on assets (3⁄4) ...................... .. 1992 0.93 1.04 1.01 1.02 0.81 0.81 0.99 1.02 1.30 1.12 0.82 

... .. .. .......... ... ...... .. ....... ..... 1990 0.48 0.70 0.76 0.35 0.38 0.03 0.61 0.82 0.98 0.46 0.92 

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

Net charge-offs to loans & leases (3⁄4) 

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

... ............... 1990 ·············••······· 1.43 0.72 0.85 1.37 1.88 2.03 0.90 0.90 0.99 1.39 1.16 

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

Noncurrent assets plus 

OREO to assets (3⁄4) ............... .... ... 1992 2.54 1.37 1.71 2.15 3.50 3.55 1.62 1.35 1.18 1.50 3.46 

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

.................... .....................1988 2.1 4 1.91 1.72 1.53 2.96 2.35 1.02 1.15 1.52 4.55 2.65 

Equity capital ratio (3⁄4) ............. .. ... .... 1992 7.51 9.38 8.20 7.69 6.62 6.93 7.60 7.86 8.43 7.31 8.17 

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

............ ....... ... .. ................. 1988 6.28 8.72 7.23 6.15 5.1 0 5.93 6.93 6.75 7.45 5.67 5.90 

FDIC Quarterly Banking Profile 

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

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East 7 West 

March 31, 1994 All than $100 to to than $10 North- South- Mid- SouthInstitutions Million $1 Billion $1 OBillion Billion east east Central I west west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ... ..... .. .................... 1.60 1.60 1.42 1.55 1.78 2.05 1.16 1.35 1.20 1.37 1.84 

Construction and development. ............................ . 2.52 1.27 1.89 2.38 3.45 3.39 0.95 2.10 1.36 1.48 4.16 

Commercial real estate .................................•.... ... 1.83 1.34 1.36 1.87 2.42 2.80 1.02 1.32 1.49 1.16 2.20 

Multifamily residential real estate.......................... 1.71 1.31 1.32 1.96 1.89 2.39 0.96 1.45 0.87 0.68 2.41 

1-4 Family residential• ........... .................... ............ 1.47 1.83 1.48 1.31 1.49 1.72 1.35 1.40 0.98 1.53 1.46 

Home equity loans ................................................. 0.80 1.26 0.86 0.74 0.80 1.01 0.63 0.59 0.58 1.44 0.76 

Commercial RE loans not secured by real estate ... 1.78 1.47 1.29 1.12 2.13 2.23 0.64 1.39 5.36 0.28 1.83 

Percent of Loans Noncurrenr• 

All real estate loans ..... ........................ ..... .............. 2.54 1.24 1.63 2.38 3.73 3.99 1.41 1.34 1.40 1.45 3.44 

Construction and development... ..................... .. .... 7.51 1.55 3.44 6.18 13.48 11.96 2.70 3.89 2.01 1.23 13.71 

Commercial real estate ............................ .. ...... ... .. 3.82 1.58 2.27 3.70 6.28 6.47 2.37 1.81 2.88 2.29 4.49 

Multifamily residential real estate .......................... 3.60 1.71 2.24 2.64 6.35 7.04 1.49 1.36 2.44 1.26 4.45 

1-4 Family residential• ...................................... ..... 1.16 0.94 0.96 1.13 1.39 1.67 0.75 0.86 0.55 0.91 1.49 

Home equity loans ....... ................................ .......... 0.77 0.95 0.70 0.60 0.93 1.31 0.40 0.38 0.26 0.74 0.57 

Commercial RE loans not secured by real estate ... 4.44 1.94 1.53 2.06 5.88 9.20 3.05 1.71 2.80 0.57 2.06 

Percent of Loans Charged-off 

(net, annualized) 

All real estate loans ................................... .... ..... .. .. 0.32 0.05 0.13 0.24 0.61 0.76 0.08 0.14 0.03 -0.04 0.31 

Construction and development. ... ................. ........ . 0.80 0.08 0.33 0.61 1.51 2.13 0.00 1.09 -0.03 -0.07 0.40 

Commercial real estate ....................... ... ....... ........ 0.57 0.06 0.17 0.39 1.34 1.49 0.18 0.14 0.13 -0.07 0.46 

Multifamily residential real estate .... ...................... 0.48 0.12 0.28 0.44 0.80 1.31 0.07 0.20 -0.34 -0.26 0.59 

1-4 Family residential• .............. ............................. 0.11 0.04 0.08 0.09 0.18 0.26 0.03 0.03 0.03 0.00 0.14 

Home equity loans .... ............................................. 0.24 0.15 0.10 0.12 0.41 0.22 0.06 0.04 0.02 0.04 0.56 

Commercial RE loans not secured by real estate.. . 0.71 0.47 -0.06 0.08 1.05 1.45 0.00 -0.01 -0.10 -0.17 0.69 

Total Loans Outstanding (in billions) 

All real estate loans ....................................... .......... $923.0 $97.7 $225.0 $281 .6 $318.6 $269.8 $193.8 $159.8 $60.8 $64.4 $174.4 

Construction and development ............................. . 64.0 6.0 15.2 21.6 21.2 16.1 15.5 9.9 3.4 4.9 14.3 

Commercial real estate ....... ...................... ... ...... .. . 270.3 26.8 76.3 90 .6 76.5 73.7 57 .9 49.9 16.2 20.2 52.3 

Multifamily residential real estate ..... ..................... 29.7 2.3 8.3 9.8 9.2 7.9 5.8 5.8 2.1 2.0 6.0 

1-4 Family residential• ........................................... 442.5 49.3 105.3 130.7 157.2 124.4 98.8 76 .2 30.3 33.9 78.9 

Home equity loans .................................. ............... 71.9 2.5 13.0 26 .3 30 .2 26 .1 12.2 12.4 2.3 0.8 18.1 

Commercial RE loans not secured by real estate ... 16.5 0.3 1.4 4.4 10.5 5.4 2.4 2.1 0.6 0.8 5.3 

Other Real Estate Owned (in millions) 

All other real estate owned .... .. ..... .... .. ......... ............ $14,987 $1,086 $2,608 $3,122 $8,172 $7,856 $1,835 $1 ,197 $569 $907 $2,624 

Construction and development.. ............................ 3,038 153 624 1,021 1,240 1,218 526 264 115 147 768 

Commercial real estate ............................ ............. 7,744 513 1,244 1,493 4,495 4,131 935 676 342 548 1,111 

Multifamily residential real estate .......................... 949 50 131 133 636 676 48 56 18 22 129 

1-4 Family residential. ................................ ........... 2,163 293 543 436 890 937 297 172 63 132 562 

Farmland ............................................................... 213 76 66 30 42 21 29 22 31 58 54 

Other real estate owned in foreign offices ......... .... 880 0 0 9 870 873 0 7 0 0 0 

•Excludes home equity loans . 

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

Mutual Fund and Annuity Sales 

First Quarter, 1994* 

Sales ($ BIiiions) 

Money Market Funds $97.7 

Debt Securities Funds 5.1 

Equity Securities Funds 4.4 

Other Mutual Funds 1.7 

Annuities 1.8 

$110.7 

*Domestic office sales of proprietary, private label 

and third-party funds and annui1i11. 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 6 First Quarter, 1994 
SAVINGS INSTITUTION PERFORMANCE - FIRST QUARTER, 1994 

• Savings Institutions Earn $1.3 Billion In The First Quarter 

• Balance-Sheet Restructurings Reduce Profits 

• Industry Assets Fall Below $1 Trillion For First Time Since 1983 

• No Savings Institutions Fail, For Second Consecutive Quarter 

Private-sector savings institutions earned $1.3 billion in the 

first quarter of 1994, for an annualized return on assets 

(ROA) of 0.52 percent. Net income was $365 million below 

the amount earned in the previous quarter, and was $1.1 

billion less than savings institutions reported in the first 

quarter of 1993, when one-time accounting gains and other 

extraordinary items contributed $304 million to earnings. 

The contributions to earnings from lower loan-loss 

provisions, reduced overhead expense and higher net 

interest income were negated by large losses related to 

balance-sheet restructurings by a few large institutions. 

Average profitability was virtually unchanged from the previous quarter at institutions with less than $5 billion in 

assets. Losses and reduced income at several institutions 

with assets above $5 billion caused a decline in that group's 

average ROA to -0.07 percent, from 0.49 percent in the 

fourth quarter of 1993. Over 94 percent of all savings 

institutions were profitable in the first quarter. 

Quarterly Net Income, 1990 - 1994 

$ Bilions 

3D Net Operatlng lrGOme 2.4 ■ Securities and Otr,er G~ns, Net 

-1 

-2 

1990 19S1 1992 1993 1994 

First-quarter earnings benefited from a $264-million decline 

from the previous quarter in provisions for future loan 

losses. Noninterest expense fell by $301 million, while net 

interest income was $65 million higher. Despite these 

improvements, the industry's net income was pulled down 

by an $824-million decline in noninterest income and a 

$148-million drop in extraordinary gains (from a $12-million 

extraordinary loss in the fourth quarter of 1993 to a $160-

million loss). A large share of these declines can be traced 

to balance-sheet restructuring losses of $411 million announced by two of the twenty largest thrifts. Another "top 

20" institution announced balance-sheet restructuring losses that added $136 million to the industry's noninterest 

expense.1 

The average net interest margin was 3.41 percent, almost 

unchanged from the 3.39 percent of the fourth quarter of 

1993, but down from 3.51 percent a year ago. A decline in 

average asset yields from the previous quarter was offset 

by a similar drop in average funding costs. The declines in 

average yields and funding costs occurred despite the two 

increases in interest rates in the first quarter. On average, 

FDIC Quarterly Banking Profile 

margins narrowed slightly at smaller institutions, as their 

asset yields fell more sharply than their funding costs. 

Larger thrifts were able to limit the decline in their average 

asset yields as their funding costs fell. Institutions in the 

Northeast region actually saw their margins increase, as 

their average asset yield remained at the level of the 

previous quarter. 

Improvements in asset quality strengthened the industry's 

balance sheet. Troubled assets - noncurrent assets plus 

other real estate owned (OREO) - fell from 2.10 percent 

of total industry assets to 1.96 percent during the quarter. 

This marks the first time that troubled assets have fallen 

below the 2 percent level since savings institutions began 

uniform reporting of noncurrent assets in 1990. A year ago, 

troubled assets represented 3.02 percent of all industry 

assets. The annualized ratio of net loan charge-offs to 

loans and leases was 0.51 percent in the first quarter, the 

lowest level since the first quarter of 1990. Net charge-offs 

of $792 million contributed to the $571-million decline in 

noncurrent loans during the quarter. Other real estate 

owned fell by $876 million during the quarter. 

Quarterly Noncurrent Real Estate Loan Rates* 

by Region, 1990-1994 

Percent 

6--- -------------~ 

Northeast

--...,,---... , 5 ; .. ,, .. , 4 ; ' .. ' --.. ..... 3 ········ . . ..... . .

,

..

.... 

- 0 L......-'--'--'--'---'---'--'---'---'---'---'---'---'---'---'--'-' 

1 2 3 4 1 2 3 4 1 2 34 123 41 

1990 1991 1992 1993 94 

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

nonaccrual status as a percent of total real estate loans. 

Noncurrent real estate loans fell to 2.05 percent of total real 

estate loans from 2.09 percent at the end of the last quarter 

and 2.55 percent a year ago.2 Institutions in the Northeast 

and West regions continue to have the highest noncurrent 

real estate loan rates, at 2.75 and 2.47 percent, respectively. For the rest of the U.S., the average noncurrent rate is 

0.89 percent. A year ago, noncurrent real estate loans in 

1

Each of the three institutions accounted for its restructuring 

differently. One restructuring charge reduced nohinterest income 

by $280 million, another increased noninterest expense by $136 

million, and the third increased extraordinary losses by $131 

million. The restructurings included asset and goodwill writedowns to facilitate asset sales, and the termination of high-cost 

swaps and borrowings. 2

At the end of the first quarter, noncurrent real estate loans 

accounted for 94 percent of all noncurrent loans at FDIC-insured 

savings institutions. 

First Quarter, 1994 7 FDIC-Insured Savings Institutions 
the Northeast region averaged 3.60 percent of total real 

estate loans; in the West region, the average was 2.88 

percent. Although the Northeast region still has the higher 

noncurrent rate, it has enjoyed more rapid improvement 

with lower loan charge-offs over the past twelve months 

than the West region. Net charge-offs of real estate loans 

averaged 0.47 percent at Northeast region thrifts in the first 

quarter; for institutions in the West region, the average was 

0.69 percent. 

Improvement in the industry's balance sheet is reflected in 

stronger reserve coverage and higher capital ratios. Net 

loan charge-offs were $204 million (20 percent) lower than 

in the previous quarter, and were less than loan-loss 

provisions plus other additions to reserves. The resulting 

$175-million increase in reserves, combined with the $571-

million reduction in noncurrent loans, raised the industry's 

"coverage ratio" in the first quarter from 65 cents in reserves 

for every dollar of noncurrent loans to 69 cents. A year 

earlier, savings institutions held only 53 cents in reserves 

for every dollar of noncurrent loans. The industry has 

improved its "coverage ratio" in every quarter since the 

fourth quarter of 1990. Equity capital grew by $971 million 

during the quarter, raising the average core capital 

"leverage" ratio to 7.55 percent at the end of March. This is 

the fourteenth consecutive quarterly improvement in this 

ratio. 

Total savings institution assets fell below $1 trillion for the 

first time since 1983, and the number of institutions reporting fell to 2,240 from 2,262 at the end of 1993. Both the 

number and assets of savings institutions continue to 

decline, primarily as a result of mergers with commercial 

banks. Seventeen savings institutions with $7 billion in 

assets either were acquired by commercial banks or 

switched to commercial bank charters in the first quarter. 

Savings institutions acquired nine Resolution Trust conservatorships with $555 million in assets, and four commercial 

banks with $485 million in assets. Seven savings institutions were acquired by other thrifts, accounting for the rest 

of the decline in the number of institutions. During the 

quarter, twenty-eight mutual savings institutions with $18 

billion in assets converted to stock organizations. Mutuals 

now account for 48 percent of all savings institutions and 

hold 20 percent of the industry's assets. 

Total real estate loans fell by $12 billion in the first quarter 

due to an $11-billion drop in home mortgages. Mortgagebacked securities increased by $7 billion to $206 billion, 

and now represent 21 percent of all thrift assets. This shift 

in the asset mix is partially explained by a $3.7-billion 

securitization of home mortgages by one large institution 

in the first quarter. This one securitization accounted for 

over half of the increase in mortgage-backed securities and 

over a third of the decline in home mortgage loans within 

the industry. 

The first quarter of 1994 marks the second quarter in a row 

in which no failures of insured savings institutions occurred. 

The number of "problem" savings institutions continues to 

shrink. At the end of March, there were 118 "problem" 

institutions with $89 billion in assets, compared to the end 

of 1993 when there were 146 institutions with assets of $92 

billion. 

Troubled Real Estate Asset Rates* 

March 31, 1994 

Northeast 

Midwest 

Kansas 

1.42 

,o 

tl 

1b Puerto Rico

5.06 

Hawaii ~ 0.72 

Southeast 

■ Greater than 6% 

Between 3% and 6% • Noncurrent real estate loans plus other real estate owned 

as a percent of total real estate loans plus OREO.

DLess Ulan 3% 

FDIC Quarterly Banking Profile 

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

1994** 1993** 1993 1992 1991 1990 

Return on assets (%) ....................... .. ...................... 0.52 0.94 0.70 0.66 0.07 -0.38 

Return on equity (%) ............................................... 6.63 12.87 9.27 9.53 1.20 -6.82 

Core capital (leverage) ratio(%) ........................... .. 7.55 7.02 7.48 6.77 5.54 4.62 

Noncurrent assets plus 

other real estate owned to assets(%)................. .. 1.96 3.02 2.10 3.07 3.96 3.98 

Net charge-offs to loans(%) .................................... 0.51 0.55 0.64 0.59 0.65 0.60 

Asset growth rate (%) .................... .... ...................... -1.28 -8.15 -2.85 -7.44 -11.61 -11.79 

Net operating income growth(%) ...................... ...... -27.39 45.72 10.51 N/M N/M NIM 

Number of institutions ........... ................................... 2,240 2,352 2,262 2,390 2,561 2,815 

Percentage of unprofitable institutions ......... ... ........ 5.67 4.51 5.79 7.66 18.51 30.12 

Number of problem institutions ..... ........................... 118 255 146 276 410 480 

Assets of problem institutions (in billions) .......... .. .. . $89 $167 $92 $184 $291 $298 

Number of failed/assisted institutions ...................... 0 3 8 81 163 223 

..Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 31. 

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

(dollar figures in millions) Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

1994 1993 1993 93:1-94:1 

Number of institutions reporting ... ................... ..... ..... ............. . . 2,240 2,262 2,352 -4.8 

Total employees (full-time equivalent) .................................... . 284,947 286,592 285,996 -0.4 

CONDITION DATA 

Total assets........................................................................ .... $996,694 $1,000,806 $1,009,582 -1.3 

Loans secured by real estate ............................ .. ............ . 583,349 595,445 606,447 -3.8 

1-4 Family residential .......................... .. ................. ........ . 444,881 455,772 463,891 -3.8 

Multifamily residential property ....................................... . 64,051 64,282 65,047 -1.5 

Commercial real estate ................................................... . 55,654 56,365 59,088 -5.8 

Construction, development and land .. ...... ...................... . 18,763 19,025 18,421 1.9 

Commercial & industrial loans ........ ............................... ... . 9,735 10,096 10,803 -9.9 

Loans to individuals ......... ..... .......................................... ... 36,894 37,571 35,905 2.8 

Other loans & leases... ............................ .......................... 1,328 1,208 1,309 1.4 

Less: Unearned income & contra accounts ............. ......... . 9,702 9,262 9,164 5.9 

Total loans & leases ........................................................... . 621,604 635,057 645,300 -3.7 

Less: Reserve for losses .................................................... . 8,833 8,658 8,746 1.0 

Net loans & leases ................................................................ . 612,770 626,399 636,555 -3.7 

Securities .... ........ .................................................................. . 286,517 275,782 264,820 

Other real estate owned .. ..................................................... . 6,796 7,672 13,953 -51.3 

Goodwill and other intangibles ..................... ........................ . 5,759 5,978 7,017 -17.9 

All other assets ............................................... .... ......... ......... . 84,851 84,974 87,238 

Total liabilities and capital.. ......... ............................................ . 996,694 1,000,806 1,009,582 -1.3 

Deposits ........... .............................. ... ........ ..................... ....... . 766,338 774,153 800,844 -4.3 

Other borrowed funds.. ............. .. .......................................... . 135,674 134,015 119,643 

Subordinated debt. .................................. ........ ...................... 2,537 2,533 2,630 -3.5 

All other liabilities .................................................................. . 12,739 11,669 11 ,310 

Equity capital. .................................................... ................... . 79,407 78,436 75,154 

Loans and leases 30-89 days past due .................................. . 10,467 9,941 11,628 -10.0 

Noncurrent loans and leases.................................................. . 12,722 13,293 16,549 -23.1 

Restructured loans and leases .... ........................................... . 9,402 10,298 15,253 -38.4 

Direct and indirect investments in real estate ..................... .... . 712 751 1,152 -38.2 

Mortgage-backed securities .............................................. .. .... 205,802 198,654 188,651 

Earning assets ..... ................................................................... . 927,479 930,120 932,723 -0.6 

FHLB Advances (TFR filers only) ........................................... . 75,190 76,035 68,235 10.2 

Unused loan commitments... ...... .... ....................... ................ . 96,248 95,394 79,060 21.7 

Preliminary 

Full Year Full Year 1st Qtr 1st Qtr %Change 

INCOME DATA 1993 1992 %Change 1994 1993 93:1-94:1 

Total interest income ............... ............................ . $66,146 $77,974 -15.2 $15,930 $17,605 -9.5 

Total interest expense .......................................... . 34,561 46,054 -25.0 8,045 9,426 -14.7 

Net interest income ................... .......................... 31,584 31,920 -1.1 7,886 8,179 -3.6 

Provision for loan losses ................... ................... . 4,318 5,189 -16.8 746 928 -19.6 

Total noninterest income ...................................... . 7,901 8,078 -2.2 1,424 1,987 -28.3 

Total noninterest expense .................................... . 24,879 25,307 -1.7 6,110 6,244 -2.1 

Securities gains (losses) ...................................... . 405 687 -41.1 39 139 -71.6 

Applicable income taxes .......................... ........ ... .. . 3,866 3,767 2.6 1,029 1,049 -1 .9 

Extraordinary gains, net ......... .. ........................... . 39 301 -87.0 (160) 304 N/M 

Net income.. .......... ...... ......... ............................... 6,867 6,724 2.1 1,304 2,389 -45.4 

Net charge-offs .... .................................................. · 3,985 3,903 2.1 792 884 -10.3 

Cash dividends ................................. .................... . 2,278 2,106 8.2 563 649 -13.3 

Net operating income .............. .. ........................ . 6,532 5,911 10.5 1,436 1,978 -27.4 

"Excludes inst1tut1ons In Resolution Trust Corporation conservatorsh1p and one self.llqu1dat1ng 1nstitut1on. NIM - Not meaningful 

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

FDIC Quarterly Banking Profile 

First Quarter, 1994 9 FDIC-Insured Savings Institutions 
TABLE 111-8. First Quarter 1994, FDIC-Insured Savings Institutions• 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

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

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

Number of institutions reporting ... ............ 2,240 1,031 1,037 144 28 823 356 565 165 146 185 

Total assets (in billions) ........... ... ............... $996.7 $52.3 $298.1 $306.7 $339.6 $338.4 $84.1 $150.4 $52.2 $57.2 $314.4 

Total deposits (in billions) ............ .............. 766.3 45.5 248.4 227.9 244.6 274.3 66.7 117.7 38.9 37.1 231.6 

Net income (in millions) ............................. 1,303.6 110.6 621 .0 630.9 (59.0) 735.2 166.8 205.7 114.1 152.6 (70.7) 

% of unprofitable institutions ..................... 5.7 5.5 5.3 6.9 17.9 5.5 5.9 2.7 3.6 4.8 17.8 

% of institutions with earnings gains ......... 37.2 35.4 36.9 51.4 42.9 37.4 39.0 37.9 30.3 37.7 36.8 

Performance Ratios (annualized, %) 

Yield on earning assets .................. .. ......... 6.89 7.14 7.04 6.88 6.72 6.94 6.97 7.03 6.81 6.63 6.80 

Cost of funding earning assets .................. 3.48 3.47 3.43 3.46 3.53 3.23 3.60 3.63 3.79 3.69 3.55 

Net interest margin ...... ............................. . 3.41 3.67 3.61 3.42 3.18 3.72 3.37 3.40 3.02 2.94 3.24 

Noninterest income to earning assets ....... 0.62 0.66 0.70 0.82 0.34 0.61 0.74 0.65 0.84 1.22 0.42 

Noninterest expense to earning assets ..... 2.64 2.88 2.76 2.56 2.56 2.67 2.60 2.49 2.23 2.47 2.79 

Net operating income to assets ........ ......... 0.58 0.84 0.84 0.84 0.08 0.86 0.86 0.89 0.95 1.06 -0.09 

Return on assets .. ...... .. ............................. 0.52 0.85 0.84 0.83 -0.07 0.87 0.79 0.55 0.89 1.07 -0.09 

Return on equity ........................................ 6.63 9.00 9.60 10.58 -0.98 10.79 9.63 6.37 11 .23 14.93 -1.21 

Net charge-offs to loans and leases .... .. .. .. 0.51 0.08 0.20 0.62 0.73 0.52 0.25 0.11 0.16 0.34 0.78 

Loan loss provision to net charge-offs ...... 94.15 151.39 123.70 81.22 95.27 74.88 69.88 100.21 87 .69 75.49 107.96 

Condition Ratios (%) 

Loss allowance to: 

Loans and leases .......... 1.42 0.90 1.24 1.54 1.55 1.66 1.20 0.85 0.82 0.91 1.64 ·· ··············· ··••·· ·· Noncurrent loans and leases .................. 69.43 60.62 75.49 77.40 61.98 60.23 97.14 112.31 126.16 77.03 67.15 

Noncurrent assets plus 

other real estate owned to assets.. .... ..... 1.96 1.33 1.62 2.07 2.2c 2.45 1.31 0.67 0.74 1.86 2.44 

Noncurrent RE loans to RE loans ............. 2.05 1.42 1.61 2.02 2.51 2.75 1.18 0.73 0.64 1.19 2.47 

Equity capital ratio .......... .......................... . 7.97 9.49 8.81 7.86 7.10 8.18 8.36 8.63 7.88 7.22 7.46 

Core capital (leverage) ratio ...................... 7.55 9.41 8.63 7.49 6.37 7.99 8.12 8.36 7.35 6.77 6.70 

Gross real estate assets to gross assets .. 78.47 71 .73 73.92 78.38 83.60 73.87 77.95 79.41 77.59 76.48 83 .61 

Gross 1-4 family mortgages to gr. assets. 43.82 50.10 43.59 37.50 48.76 39.45 46.20 47.35 44.44 28.49 , 48.94 

Net loans and leases to deposits .............. 79.96 73.92 73.37 76.82 90.71 70.21 78.66 78.15 78.96 66.59 95.12 

Growth Rates (year-to-year,%) 

Assets ...................... .. ............................... -1 .3 - - 3.0 -15.0 -0.3 4.8 1.4 -3.3 .. .. .. .. .. .. .. Equity capital ............................................. -

Net interest income ................................... -3.6 - - -0.2 -17.6 -4.0 -4.1 -0.3 -3.3 

Net income ................................................ -45 .4 - - - -12.7 3.3 -46.1 -16.0 -56.2' -113.6 

Noncurrent assets plus 

other real estate owned........................... -36 .0 - - -31.1 -50.7 -28 .8 -34.1 -51.2 -36.4 

Net charge-offs ......................................... : -10.3 - - - -23 .7 -47.1 -15.2 22.4 -22.8 6.7 

Loan loss provision ............................. ...... -19.6 - - - - -44.7 -61.6 -58.7 -9.0 -22.9 13.0 

PRIOR FIRST QUARTERS 

(The way it was ... ) 

Number of institutions ....................... 1993 2,352 1,095 1,081 149 27 845 401 582 174 152 198 

....................................... 1992 2,528 1,168 1,153 175 32 895 449 617 187 161 219 

..................................... ..1991 2,750 1,292 1,229 196 33 961 504 657 198 183 247 

Total assets (in billions) ..................... 1993 $1,009.6 $55.3 $311.9 $314.8 $327.6 $328.5 $99.0 $150.8 $49.9 $56.4 $325.1 

....................................... 1992 1,099.1 58.6 331.5 354.1 354.9 374.9 116.0 156.0 49.7 61.2 341.3 

.. ...... ............................... 1991 1,209.5 63.6 357.7 400.0 388.3 402.6 139.1 164.7 51 .5 72.5 379.1 

Return on assets (%) ........................1993 0.94 1.03 1.01 1.08 0.73 1.02 0.65 1.02 1.10 2.37 0.64 

............. .......................... 1992 0.63 0.76 0.69 0.71 0.49 0.42 0.71 0.83 0.76 1.64 0.56 

...................... ................. 1991 0.14 0.24 0.23 0.14 0.03 -0.18 0.20 0.45 0.58 0.25 0.24 

Net charge-offs to loans & leases (%) 

0.55 0.15 0.24 0.58 0.85 0.68 0.40 0.14 0.13 0.46 0.69 

............. .... ...................... 1992 0.57 0.27 0.42 0.67 0.67 0.88 0.45 0.24 0.43 0.32 0.48 

..................................... ..1991 0.58 0.27 0.51 0.79 0.49 0.98 0.55 0.21 0.30 0.61 0.36 

············· ··························1993 

Noncurrent assets plus 

OREO to assets (%)...............1993 3.02 1.77 2.38 2.92 3.94 3.67 2.25 0.94 1.17 3.86 3.71 

......... .............................. 1992 3.87 2.26 2.94 4.11 4.75 4.88 3.07 1.36 1.47 6.66 4.01 

....................................... 1991 4.15 2.49 3.53 4.97 4.15 5.10 3.74 1.38 1.82 13.91 2.95 

Equity capital ratio (%) ......................1993 7.44 8.67 7.95 7.39 6.81 7.50 7.72 8.09 7.29 6.64 7.17 

....................................... 1992 6.44 7.83 6.95 6.34 5.84 6.49 6.39 7.05 5.84 5.67 6.35 

................................ ....... 1991 5.72 7.33 6.48 5.33 5.17 6.17 5.51 6.28 4.87 3.32 5.66 .Excludes mst1tut1ons in Resolution Trust Corporation conservatorsh1p and one self-liqu1dat1ng mst1tut1on . 

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 First Quarter, 1994 
TABLE IV-8. Full Year 1993, FDIC-Insured Savings Institutions• 

Asset Size Distribution Geographic Distribution by Region 

Le ss $100 Million $1 Billion Greater East I West 

All than $100 to to than $5 North- South- Mid- SouthInstitutions Million $1 Billion $5 Billion Billion east east Central I west west West

Number of institutions reporting ....... ..... .. .. 2,262 1,048 1,040 146 28 826 367 568 166 147 188 

Total assets (in billions) ........ ..... .... ..... ... $1 ,000.8 $53.4 $298.8 $306 .8 $341.8 $336.6 $89.1 $150.8 $50.9 $56.9 $316.5 

Total deposits (in billions) ................. ......... 774.2 46.4 249.5 231.0 247.3 275.4 70.6 118.2 38.8 37.4 233.8 

Net income (in millions) ............................. 6,867 .0 526.4 2,748 .3 1,865 .4 1,726.9 2,205.1 632.9 1,410.1 482.3 929.7 1, 206.9 

% of unprofitable institutions ..................... 5.8 4.9 5.6 12.3 14.3 5.9 8.2 2.8 1,8 1.4 16.5 

% of institutions with earnings gains ......... 69.2 66 .1 73 .0 65.8 60.7 77 .0 67 .6 66 .2 65 .7 62 .6 55.3 

Performance Ratios(%) 

Yield on earning assets ............ ................ 7.28 7.62 7.52 7.17 7. 13 7.28 7.39 7.51 7.39 6.84 7.21 

Cost of funding earning assets .. ....... ........ 3.81 3.81 3.78 3.73 3.89 3.52 3.95 3.97 4.18 3.89 3.91 

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

Noninterest income to earning assets ....... 0.87 0.72 0.88 0.89 0.87 0.68 0.92 0.79 0.87 1.77 0.94 

Noninterest expense to earning assets ..... 2.74 2.79 2.87 2.77 2.59 2.90 2.79 2.55 2.42 2.60 2.73 

Net operating income to assets ................. 0.67 0.95 0.86 0.68 0.44 0.64 0.76 0.99 0.94 1.44 0.34 

Return on assets .. . ..... . ...... ... . ... .... .. .. ... .. 0.70 1.00 0.94 0.62 0.52 0.67 0.73 0.96 0.98 1.65 0.39 

Return on equity ................... .................... 9.27 11.25 11 .45 8.31 7. 53 8.76 9.58 11.60 13.07 24 .39 5.34 

Net charge-offs to loans and leases ... 0.64 0.15 0.29 0.50 1.10 0.66 0.33 0.11 0.15 0.27 1.00 

Loan loss provision to net charge-offs ..... 108.35 166.29 146.10 118.11 95.67 94 .11 128.70 221 .65 132.20 101.26 109.45 

Condition Ratios(%) 

Lo ss allowance to: 

Loans and leases .. .. ... ......... ................... 1.36 0.89 1. 23 1.54 1.41 1.66 1.23 0.84 0.83 0.87 1.48 

Noncurrent loans and leases .................. 65 .13 57.51 71 .85 75 .00 55 .86 56 .11 91.26 107.84 108.72 80.65 62.85 

Noncurrent assets plus 

other real estate owned to assets ........... 2. 10 1.39 1.74 2. 16 2.45 2.72 1.48 0.72 0.83 2.26 2.44 

Noncurrent RE loans to RE loans ..... .. ...... 2.09 1.49 1.67 2.06 2.53 2.97 1.28 0.73 0.76 1.11 2.37 

Equity capital ratio.. .... ............... ............... 7.84 9.33 8.61 7.71 7.04 8.00 7.97 8.53 7.90 7.12 7.42 

Core capital (leverage) ratio.. ..... ......... ...... 7.48 9.24 8.44 7.36 6.48 7.82 7.76 8.28 7.48 6.69 6.81 

Gross real estate assets to gross assets .. 78 .78 72.43 74 .70 78 .18 83.89 74.25 77 .56 80 .09 78.50 76 .27 83 .80 

Gross 1-4 fam ily mortgages to gr. assets. 44 .74 50.77 44.52 38.38 49.71 40.50 46.48 47 .81 45 .32 29.68 49.94 

Net loans and leases to deposits ............. 80 .91 74.70 74.40 77 .16 92 .15 71 .06 79.16 78 .28 77 .94 69.77 96 .66 

Growth Rates (year-to-year,%) 

Assets .. ....... ........ ... ...................... ....... -2.9 - - -1.3 -18.2 0.2 3.0 -7.4 -0.7 

Equity capit al. ................. ................. ........ 5.5 - - 8.7 -12.9 8.3 15.4 4.2 5.8 

Net interest income ...... ......... ................... -1.1 - 0.5 -19.5 3.5 6.5 6.8 -0.7 

Net income ...... ............ .... ........... .............. 2.1 - 9.8 -25.3 6.2 -10.3 0.3 12.2 

Noncurrent assets plus 

other real estate owned .................. .. ....... -33.6 - - -29 .5 -50.1 -27 .2 -31 .0 -46 .7 -32.8 

Net charge-offs ................... .. .................. ... 2.1 - -30.5 -31.4 -43.5 -30.1 -19.9 58 .5 

Loan loss provision .... .. ·· -16 .8 - -29 .9 -43 .8 -21.7 -29 .5 -52 .6 -0.2 ·· ····· ··· ··············" 

PRIOR FULL YEARS 

(The way it was ... ) 

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

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

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

Total assets (in billions) ...... . ............. 1992 $1 ,030.2 $55.9 $316.2 $325 .3 $332.7 $341.2 $109 .0 $150.5 $49.5 $6 1.4 $318 .7 

......... 1991 $1,113.0 $58.9 $334.5 $380 .9 $338.7 $377.1 $122 .2 $155 .0 $49.7 $63.5 $345.4 

.. ..... .. .................. ... ....... ..1990 $1,259.2 $64.4 $364.8 $424.4 $405 .6 $411.2 $151 .9 $172.2 $55.7 $77.5 $390 .7 

················· ············ 

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

....... ··················· ·· ·· ·---· ··1991 0.07 0.34 0.24 0.05 -0.1 1 -0.39 0.09 0.51 0.58 0.54 0.21 

....... .. ....................... ..... ..1990 -0.38 0.05 -0.22 -0.58 -0.38 -0.79 -0.52 0.24 0.04 -0.07 -0.28 

Net charge-offs to loans & leases (3⁄4) 

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

... ..... ................ ...... ........ 1991 0.65 0.30 0.50 0.84 0.66 1.12 0.58 0.21 0.28 0.41 0.45 

.. ........ .......... .. . ............. 1990 0.60 0.25 0.57 0.73 0.57 0.91 0.60 0.24 0.35 0.77 0.46 

Noncurrent assets plus 

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

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

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

Equity capital ratio (3⁄4) ........ ... ........... 1992 7.22 8 .47 7.71 7.12 6.62 7.26 7.48 7.89 7.05 6.32 6.96 

···· ···· ·1991 

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

........................... ... ........ 1990 5.36 7. 27 6.34 4.94 4.62 6.09 4.87 6.38 4.42 3.04 4.93 

Excludes 1nst1tut1ons 1n Resolution Trust Corporation conservatorsh1p and one self-l1qu1dating 1nst1tut1on . 

FDIC Quarterly Banking Profile 

First Quarter, 1994 11 FDIC-Insured Savings Institutions 
------

TABLE V-B. Real Estate Loan Performance and Other Real Estate Owned, FDIC-Insured Savings Institutions* 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

March 31 , 1994 All than $100 to to than $5 North- South- Mid- SouthInstitutions Million $1 Billion $5 Billion Billion east east Central I west west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate .............................. 1.64 2.19 1.53 1.45 1.79 1.83 1.40 1.07 1.31 1.36 1.86 

Construction, development and land..................... 1.28 1.10 1.11 1.78 0.94 2.48 1.16 0.82 0.96 0.50 1.03 

Commercial real estate ......................................... 2.47 2.06 2.07 2.21 3.37 2.32 2.06 1.16 2.43 1.76 3.23 

Multifamily residential real estate .......................... 1.84 2.08 1.83 2.10 1.67 1.65 1.26 0.99 1.26 1.45 2.12 

1-4 Family residential ............................................ 1.53 2.27 1.45 1.21 1.69 1.74 1.34 1.08 1.23 1.41 1.65 

Percent of Loans Noncurrent.. 

All real estate loans ................................................. 2.05 1.42 1.61 2.02 2.51 2.75 1.18 0.73 0.64 1.19 2.47 

Construction, development and land ..................... 3.64 1.63 2.93 5.89 2.63 7.68 2.44 1.36 0.95 0.73 4.79 

Commercial real estate ..................... .................... 4.42 2.76 3.94 4.76 4.96 5.47 2.53 2.09 2.57 2.39 4.71 

Multifamily residential real estate .................••....... 3.26 3.71 2.65 3.74 3.19 4.88 1.88 1.08 0.84 2.09 3.22 

1-4 Family residential ....................... ............•........ 1.51 1.17 1.06 1.14 2.16 1.91 0.85 0.56 0.45 1.06 1.97 

Percent of Loans Charged-off 

(net, annualized) 

All real estate loans..... .......... .................................. 0.45 0.07 0.18 0.55 0.64 0.47 0.20 0.09 0.11 0.25 0.69 

Construction, development and land ... .................. 0.50 0.11 0.17 0.99 0.85 1.12 0.23 0.04 0.82 -0.01 0.68 

Commercial real estate ......................................... 1.36 0.24 0.54 1.97 1.93 1.30 1.27 0.71 0.60 2.79 1.60 

Multifamily residential real estate .......................... 1.09 0.39 0.69 1.15 1.24 0.84 0.46 0.38 0.51 0.14 1.39 

1-4 Family residential. ........................................... 0.24 0.03 0.07 0.22 0.42 0.27 0.05 0.02 0.02 0.04 0.42 

Total Loans Outstanding (in billions) 

All real estate loans ................................................. $583.3 $32.3 $174.7 $159.4 $217.0 $177.3 $50.6 $88.4 $27.9 $22.1 $217.0 

Construction, development and land ..................... 18.8 1.6 9.3 5.5 2.5 4.2 3.9 3.7 0.9 2.0 4.1 

Commercial real estate ......... ................................ 55.7 2.7 20.3 17.4 15.2 23.1 5.1 5.5 2.1 1.7 18.2 

Multifamily residential real estate .......................... 64.1 1.3 12.5 19.5 30.8 14.7 1.7 6.8 1.4 1.4 38.1 

1-4 Family residential. ........................................... 444.9 26.7 132.7 117.0 168.5 135.3 39.9 72.5 23 .5 17.0 156.6 

Other Real Estate Owned (in millions)-

All other real estate owned .................................. .... $6,796 $193 $1,803 $2,798 $2,002 $2,912 $445 $305 $183 $770 $2,181 

Construction, development and land ... .................. 1,809 27 532 1,060 189 870 143 38 20 369 369 

Commercial real estate ......................................... 2,254 59 688 848 660 943 199 167 100 228 617 

Multifamily residential real estate .......................... 1,287 25 249 605 408 424 18 49 48 182 567 

1-4 Family residential. ....................................•...... 2,336 104 575 583 1,075 901 137 101 44 78 1,075 

Troubled Real Estate Asset Rates-

(% of total RE assets) 

All real estate loans ................................................. 3.17 2.01 2.61 3.71 3.40 4.32 2.04 1.07 1.29 4.52 3.45 

Construction, development and land..................... 12.12 3.32 8.20 21 .19 9.59 23.62 5.86 2.35 3.20 15.98 12.74 

Commercial real estate ............................ ............. 8.14 4.82 7.09 9.18 8.91 9.18 6.18 5.00 7.05 14.02 7.83 

Multifamily res idential real estate .......................... 5.17 5.55 4.55 6.64 4.45 7.55 2.90 1.79 4.09 13.35 4.64 

1-4 Family residential. ........................................... 2.02 1.55 1.49 1.63 2.78 2.56 1.19 0.70 0.63 1.51 2.64 

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

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

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

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

Spread Between Short - Term and Long - Term Yields 

30 - Year Treasury Bonds Versus 3 - Month Treasury Bills Yield (%) 

10 

Yield on 30 -Vear Treasury Bonda 

8 -----=c:::::::-:::::::::______ 

6 

Spread 

4 

2 

Yield on 3 - Month Treasury Bills 

0 

1990 1991 1992 1993 1993 1993 1993 1994 

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

30 - Year Bonds 8.55 7.85 7.53 7.08 6.86 6.32 6.13 6.56 

3 - Month Bills 6.99 4.54 3.07 2.96 2.97 3.00 3.06 3.24 

Spread 1.56 3.31 4.46 4.12 3.89 3.32 3.07 3.32 

FDIC Quarterly Banking Profile 

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

• Total Assets Surpass $4.8 Trillion 

• Insured Deposits Decline Slightly 

• No Insured Institutions Fail In The First Quarter 

Total assets of all 13,080 private-sector, FDIC-insured 

commercial banks and savings institutions reached $4.8 

trillion on March 31, up 2.8 percent for the quarter and 7 

percent over the year-earlier date. Accounting changes, 

primarily stemming from FASB Interpretation 39 (see 

Notes to Users), added approximately $100 billion to total 

assets in the first quarter of 1994. Securities contributed 

$30 billion to first-quarter growth, while total loans were 

essentially unchanged, as growth in commercial and 

industrial loans largely offset a decline in 1-to-4 family 

mortgage loans. 

Accounting and reporting changes also impacted the 

liability structure of insured institutions, increasing the 

ratio of nondeposit liabilities to total liabilities. Estimated 

FDIC-insured deposits in private-sector institutions were 

down 0.3 percent since year-end and 1.1 percent from a 

year ago. Deposits insured by the Bank Insurance Fund 

(BIF) declined 0.4 percent in the first quarter and 0.9 

percent for the 12-month period, while those insured by 

the Savings Association Insurance Fund (SAIF) fell 0.1 

percent in the first quarter and 1.8 percent for the year. 

Because of the accounting changes which boosted firstquarter assets, the equity-to-assets ratio (7.86 percent) 

fell slightly from December but remained higher than the 

level a year ago. 

In the first quarter of 1994, no insured institutions failed, 

were placed in conservatorship or received financial assistance from the FDIC. 

An institution's insurance fund membership and primary 

federal supervisor are generally determined by the 

institution's charter type. BIF members are predominantly commercial banks supervised by one of the three 

federal banking agencies, and SAIF members are 

predominantly savings institutions supervised by the Office of Thrift Supervision (OTS). However, changes in 

charter type and deposit acquisitions can alter the 

relationships among charter type, primary federal supervisor and insuring fund. These developments are discussed below. 

"Sasser" institutions. Since 1989, institutions have 

been permitted to switch charter type and primary federal 

supervisor without changing insurance fund membership. In the first quarter of 1994, 20 SAi F-member institutions changed charters, with nineteen becoming 

state-chartered savings banks, supervised by the FDIC, 

and one becoming a national bank, supervised by the 

OCC. On March 31, 293 SAIF-member institutions were 

subject to supervision by one of the three federal banking 

agencies. 

"Oakar" deposits. A member of one insurance fund 

may acquire deposits insured by the other fund, but this 

portion of the acquiring institution's deposits retains 

coverage under the other fund. On March 31, 1994, 586 

BIF-member institutions held an estimated $144 billion in 

SAIF-insured deposits, or 21.2 percent of all SAIFinsured deposits;* and 30 SAIF-member institutions held 

an estimated $5.7 billion in BIF-insured deposits, or 0.3 

percent of all BIF-insured deposits. 

*This includes Home Savings of America (total assets $50 billion), 

a BIF-member savings bank which had $35 billion in SAIF-insured 

deposits on March 31 . 

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

March 31 , 1994* 

. 

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

Institutions Assets Deposits BIF SAIF Total 

Private-Sector Commercial and Savings Institutions 

FD IC-Insured Commerci al Banks .... ... .... ......................... .. ... 10,840 3,843,219 2,756,880 1,728,458 113,558 1,842,016 

BIF-member .. ........ ........ ......... .. ....... ......... .... ........ .. ..... ...... 10,768 3,827,748 2,744,592 1,727,712 105,554 1,833,267 

SAIF-member .................... ....... ...... .......... ......... ............... 72 15,471 12,288 745 8,004 8,749 

FD IC-I nsured Savings Institutions ................ ......... ... ... ... ..... . 2,240 996,694 766,338 166,049 565,537 731,586 

OTS-Supervised Savings Institutions ............................... 1,631 768,880 579,009 22,293 529,957 552,250 

BIF-member ..... ........ ..... ...................................... ...... .. ... 17 71,515 54 ,478 17,354 35,134 52 ,488 

SAi F-member• ........ .. .................................................. ... 1,614 697,365 524,531 4,939 494,823 499,763 

FD IC-Supervised State Savings Banks ............................ 609 227,814 187,329 143,756 35,580 179,336 

BI F-member ..................... .. .... ..... ................................... 388 188, 133 154,279 143,756 3,531 147,287 

SAIF-member .... ... ........ .. ..... ........ ...... .. ............... ...... ..... 221 39,681 33,050 0 32,049 32 ,049 

Total Private-Sector Commercial and 

Savings Institutions ........................... ............................. 13,080 4,839,913 3,523,218 1,894,507 679,095 2,573,60 2 

BIF-member .......... .. .. ...... .............. .. ... ... .. .............................. 11,173 4,087 ,396 2,953 ,350 1,888,822 144, 220 2,033 ,04 2 

SA IF-member ...... ..... .. ... ..... .. ... .............. ............................ ... 1,907 752,5 18 569,869 5,685 534,875 540,560 

Other FDIC-Insured Institutions 

RTC Conservatorships ..................... ........................... ... ...... 48 19,744 16,182 0 16,008 16,008 

U.S. Branches of Foreign Banks (as of 12/31/93) ................ 52 10,055 4,666 2,304 0 2,304 

Total FDIC-Insured Institutions .............................. ..... ..... .... 13,180 4,869,712 3,544,066 1,896,811 695,104 2,591 ,914 

Excludes one self-hqu1dating savings inst1tut1ons with less than $1 m1ll1on 1n SAIF-insured deposits . 

FDIC Quarterly Banking Profile 

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

{dollar figures in millions) 1--- - 1_9_9_4*_*___1_9_9_3*_•_ ___1_9_9_3_ _ _ 1_9_9_2____1_9_9_1___ 1_9_9_0_ 

Number of institutions reporting ..... ................. ..... .......... . 13,080 13,682 13,220 13,852 14,482 15,158 

Total assets............. ... ................................ .... .. ... ........... . $4,839,913 $4,523,045 $4,706,759 $4,535,729 $4,543,611 $4,648,642 

Total deposits........ ......... ....... ........................... .............. . 3,523,218 3,456,353 3,528,234 3,526,944 3,594,272 3,637,267 

Number of problem institutions.. ...... ............ ....... ......... ... . 501 926 572 1,063 1,426 1,492 

Assets of problem institutions (in billions) ............. ......... . . $142 $545 $334 $592 $819 $640 

Number of failed/assisted institutions ....... ...................... . 0 11 50 181 271 382 

Assets of failed/assisted institutions (in billions) ...... ...... . . $0 $3 $10 $88 $142 $145 

**As of March 31 . 

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

(dollar figures in millions) Preliminary 

1st Quarter 4th Quarter 1st Quarter % Change 

1994 1993 1993 93:1-94:1 

Number of institutions reporting ...... ... .... ................. .. ....... ..... .. . 13,080 13,220 13,682 -4.4 

Total employees (full-time equivalent) .............. ..... ........ ......... . 1,773,435 1,780,092 1,753,870 1.1 

CONDITION DA TA 

Total assets... ......... ......... ... ... .. ....... ... ...... .. ........... .... ...... ........ . $4,839,913 $4,706,759 $4,523,045 7.0 

Loans secured by real estate ....... ................................ ... .. 1,506,301 1,518 ,302 1,476,282 2.0 

1-4 Family residential.. ............. .......... .......... .. ............. .. 959,295 971 ,588 928,769 3.1 

Home equity loans .... .............. ..... ....... .. ............... ........ 89,189 90,458 93,355 -4.5 

Multifamily residential property.. .......... .... .. .. ................ .. 93,770 93,960 92,712 1.1 

Commercial real estate.. ................. .. ....... .. .......... ......... . 325,860 323,975 319,371 2.0 

Construction, development and land ........ ............. ....... . 82,807 85,439 92,528 -10.5 

Other real estate loans.. .. .. .............. ...... .. .................... .. 44,570 43,340 42,902 3.9 

Commercial & industrial loans .............................. .......... . .. 559,159 548,931 543 ,038 3.0 

Loans to individuals ........................................ ................. .. 458,686 456,575 417,684 9.8 

Credit cards & related plans .............................. ........ ..... . 159,844 163,871 140,883 13.5 

Other loans & leases.................... ....................... ......... .... . 276,127 276,738 248,744 11 .0 

Less: Unearned income & contra accounts ..................... .. 15,901 16,007 17,391 -8.6 

Total loans & leases................ .......... .. .. ................. .. .......... . 2,784,372 2,784,539 2,668,357 4.4 

Less : Reserve for losses ......................................... .. ......... . 61 ,736 61,395 63,364 -2.6 

Net loans & leases.................................... ................. .. ......... . 2,722,636 2,723,144 2,604,993 4.5 

Securities ........... ... .. ............................................................. . 1,142,119 1,112,372 1,067,197 

Other real estate owned............................................. .......... . 21,783 23,927 39,133 -44.3 

Goodwill and other intangibles ............. ................................. 24,166 24,005 23,204 4.2 

All other assets.......................................................... ....... .. .. . 929,211 823,311 788,519 

Total liabilities and capital.. ....... .......... ........................ ............ . 4,839,913 4,706,759 4,523,045 7.0 

Deposits................ .... ................ ........ .................................... . 3,523,218 3,528,234 3,456,353 1.9 

Estimated Insured Deposits ................................................ . 2,573,602 2,582,502 2,602,608 -1.1 

BIF-insured deposits (estimated) .. ........ ................ ............ . 1,894,507 1,902,677 1,910,887 -0.9 

SAIF-insured deposits (estimated) ..................... ......... ... .. . 679,095 679,825 691,721 -1.8 

Other borrowed funds ......... ... ................. .................. ............. 673,993 631 ,849 550,105 

Subordinated debt... ...... ............ ...... ........ ....... .......... .. .. ..... ... . 39,764 39,905 37,076 7.3 

All other liabilities ............ .......... ...................... ... ...... ............. . 222,736 131,747 130,768 

Equity capital. .. ........ ..................... ........................................ . 380,202 375,022 348,744 

Loans and leases 30-89 days past due..................... .. ........... . 39,791 38,608 45,712 -13.0 

Noncurrent loans and leases ................................... .. .. ..... .... .. . 53,068 55,998 75,456 -29.7 

Restructured loans and leases............................... ..... .......... .. 15,621 20,474 26,394 -40.8 

Direct and indirect investments in real estate ......................... . 1,323 1,294 1,627 -18.7 

Mortgage-backed securities ....................... ........................ .... . 537,522 535,456 511,754 

Earning assets............. ........................................... .......... ...... . 4,239,754 4,220,721 4,037,350 5.0 

Unused loan commitments............... ...... ...... .......... ......... ..... . .. 1,632,712 1,551 ,770 1,376,538 18.6 

Preliminary 

Full Year Full Year 1st Qtr 1st Qtr %Change 

INCOME DATA 1993 1992 %Change 1994 1993 93:1 -94:1 

Total interest income.................... .......... . $311,236 $333,197 -6.6 $76,506 $78,801 -2.9 

Total interest expense.......................................... . 140,319 167,857 -16.4 33,468 35,995 -7.0 

Net interest income............................. .. ...... ....... . 170,917 165,340 3.4 43,038 42,806 0.5 

Provision for loan losses......................... ......... .... . 21 ,084 31 ,232 -32.5 3,474 5,673 -38.8 

Total noninterest income...................... .. ...... ........ . 82,866 73,724 12.4 20,061 19,656 2.1 

Total noninterest expense............ ................... ..... . 164,539 156,270 5.3 40,721 41 ,283 -1.4 

Securities gains (losses) .. .... ...... ......... ................ .. 3,466 4,693 -26.2 598 1,131 -47.1 

Applicable income taxes......... ... .......................... .. 23,739 18,250 30.1 6,939 5,541 25.3 

Extraordinary gains, net.. .............. ............ ............ 2,097 711 195.1 (196) 2,103 N/M 

Net income.................... .... ................................. . 49,983 38,716 29.1 12,366 13,197 -6.3 

Net charge-offs .................... .. ... ... .. .. ..... ...... .......... . 21 ,479 29,549 -27.3 3,391 5,205 -34.8 

Cash dividends ..... ............. .......... ........................ .. 24,299 16,235 49.7 6,772 4,949 36.8 

Net operating income.... .............. .. ..................... . 45,382 34,549 31 .4 12,157 10,294 18.1 

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

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

FDIC Quarterly Banking Profile 

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

(dollar figures in millions) ,____19_9_4_**___ 19_9_3_*_*___1_9_9_3___ 1_9_9_2____19_9_1____1_9_90_ 

Number of institutions reporting .. ................................... . 11,173 11,674 11 ,291 11,813 12,305 12,791 

Total assets ......... ........................................................... . $4,087,396 $3,751,809 $3,949,498 $3,711,462 $3,660,425 $3,646,838 

Total deposits ................. ................................................ . 2,953,350 2,856,908 2,951,735 2,873,079 2,881,739 2,861,441 

Number of problem institutions ....................................... . 418 737 472 856 1,089 1,046 

Assets of problem institutions (in billions) ....................... . $79 $427 $269 $464 $610 $409 

Number of failed/assisted institutions ............................. . 0 7 41 122 127 169 

Assets of failed/assisted institutions (in billions) ... .......... . $0 $1 $4 $44 $63 $15 

•• As of March 31. 

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

(dollar figures in millions) Preliminary 

1st Quarter 4th Quarter 1st Quarter 3⁄4 Change 

1994 1993 1993 93:1-94:1 

Number of institutions reporting .............................................. . 11,173 11,291 11 ,674 -4.3 

Commercial banks ....................... .. ........... ............................ . 10,768 10,887 11,263 -4.4 

Savings institutions .. ............... .. ............................................ . 405 404 411 -1.5 

Total employees (full-time equivalent) .................................... . 1,550,664 1,556,403 1,532,404 1.2 

CONDITION DATA 

Total assets .. ............... ..................................................... ...... . $4,087,396 $3,949,498 $3,751 ,809 8.9 

Loans secured by real estate, total. ..... ............... ......... .. ....... . 1,064,733 1,068,877 1,018,439 4.6 

1-4 Family residential. ................ .. ..... ................... .............. . 616,324 622,075 573,983 7.3 

Multifamily residential property ............................ ............... . 48,498 48,169 45,690 6.2 

Commercial real estate .............................................. .. ....... . 289,219 286,532 279,354 3.5 

Construction, development and land .................................. . 66,183 68,818 76,552 -13.5 

Commercial & industrial loans .............................................. . 553,655 543,153 536,948 3.1 

Reserve for losses ........ ................. ........ ... ....................... .. . . 55,531 55,383 57,293 -3.1 

Total deposits ........ ..................... ................... ........................ 2,953,350 2,951 ,735 2,856,908 3.4 

Estimated insured deposits ............... ...... .......................... .... 2,033,042 2,036,713 2,030,400 0.1 

BIF-insured deposits (estimated) ............. ......... ...... ............. 1,888,822 1,897,887 1,907,524 -1.0 

SAIF-insured deposits (estimated) ... ....... ................ ........... . 144,220 138,826 122,876 17.4 

Noncurrent loans and leases ... .............................................. 44,629 47,424 65,352 -3 1.7 

Other real estate owned .................................... .. ... ........... ... . 17,007 18,520 29,360 -42.1 

.. Equity capital ... .. ............................................ ....... ................ . 321,187 316,381 292,234 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions: 

Well capitalized ... ........................................ ...... .. ...... ............ . 10,949 11,050 11,276 -2.9 

Adequately capitalized ............... .. ... ...................................... . 172 186 287 -40.1 

Undercapitalized ...................... ......................... .................... . 20 21 52 -61 .5 

Significantly undercapitalized ............ ................................... . 26 23 41 -36.6 

Critically undercapitalized ................... .............. .......... .... ..... . . 6 11 18 -66.7 

Total assets : 

Well capitalized.. ................ .................................................. . . $3,929,483 $3,796,865 $3,373,484 16.5 

Adequately capitalized .......................................................... . 149,759 141 ,904 348,265 -57.0 

Undercapitalized ........ ................ ............... ........................ .... . 1,409 1,991 11,915 -88.2 

Significantly undercapitalized .............................................. . 6,008 5,226 16,266 -63.1 

Critically undercapitalized ................. .................................... . 737 3,512 1,879 -60.8 

Preliminary 

Full Year Full Year 1st Qtr 1st Qtr 3⁄4Change 

INCOME DATA 1993 1992 3⁄4Change 1994 1993 93:1-94:1 

Net interest income... ......................... .................. . $147,809 $140,576 5.2 $37,314 $36,731 1.6 

Provision for loan losses ...................................... . 18,207 27,263 -33.2 2,944 5,059 -41.8 

Net income ........................... .............. ................. . . 44,583 33,323 33.8 11,598 11,334 2.3 

Net charge-offs ............................... ................... ... . 19,055 27,077 -29.6 2,840 4,675 -39.2 

Number of institutions reporting net losses.. ........ . 543 825 -34.2 471 596 -21 .0 

*Excludes insured branches of foreign banks. 

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

FDIC Quarterly Banking Profile 

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

(dollar figures in millions) f--- -19_9_4_..___ 1_99_3_.._ _ __1_9_9_3_ __1992 _ ___ _ 1991 1990 

Number of institutions reporting .................................. .. .. 1,907 2,008 1,929 2,039 2,177 2,367 

Total assets.................................................................... . $752,518 $771 ,237 $757,261 $824,267 $883,187 $1,001,804 

Total deposits ..... .. ............ .............................................. . 569,869 599,445 576,500 653,865 712,533 775,826 

Number of problem institutions ....................................... . 83 189 100 207 337 446 

Assets of problem institutions (in billions) ....................... . $63 $117 $65 $128 $209 $231 

Number of failed/assisted institutions .... ......................... . 0 4 9 59 144 213 

Assets of failed/assisted institutions (in billions) ............. . $0 $2 $6 $44 $79 $130 

••As of March 31 . 

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

(dollar figures in millions) Preliminary 

1st Quarter 4th Quarter 1st Quarter % Change 

1994 1993 1993 93:1-94:1 

Number of institutions reporting ... ........................................... . 1,907 1,929 2,008 -5.0 

Commercial banks .................. ........................ ...................... . 72 71 67 7.5 

Savings institutions ................. ......................................... ..... . 1,835 1,858 1,941 -5.5 

Total employees (full-time equivalent) .................................. .. . 222,771 223,689 221,466 0.6 

CONDITION DATA 

Total assets .......................................... ..... ............................. . $752,518 $757,261 $771,237 -2.4 

Loans secured by real estate, total. ...................................... . 441,568 449,425 457,844 -3.6 

1-4 Family residential. ........................................................ . 342,971 349,513 354,786 -3.4 

Multifamily residential property ........................................... . 45,271 45,792 47,022 -3.7 

Commercial real estate....................................................... . 36,641 37,443 40,017 -8.4 

Construction, development and land .................................. . 16,624 16,621 15,976 4.1 

Commercial & industrial loans .................................. ............ . 5,503 5,778 6,089 -9.6 

Reserve tor losses .............................................................. . 6,206 6,012 6,072 2.2 

Total deposits .......... ............................................ ................. . 569,869 576,500 599,445 -4.9 

Estimated insured deposits ....... ........................................... . 540,560 545,790 572,207 -5.5 

BIF-insured deposits (estimated) .................. ...................... . 5,685 4,791 3,363 69.0 

SAIF-insured deposits (estimated) .. ........ .............. .. .. ......... . 534,875 540,999 568,844 -6.0 

Noncurrent loans and leases .... .......................... ....... ........... . 8,439 8,574 10,104 -16.5 

Other real estate owned....................................................... . 4,776 5,407 9,773 -51.1 

Equity capital ........................................................................ . 59,014 58,641 56,510 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions: 

Well capitalized ..................................................................... . 1,796 1,822 1,736 3.5 

Adequately capitalized ......................................................... . 100 93 203 -50.7 

Undercapitalized ................ .. ................................................. . 9 11 31 -71.0 

Significantly undercapitalized ... ............................................ . 2 1 27 -92.6 

Critically undercapitalized ................. ................................ .... . 0 2 11 -100.0 

Total assets : 

Well capitalized ..................................................................... . $646,485 $668,607 $619,723 4.3 

Adequately capitalized .................. ....................... ............. .... . 99,628 83,965 107,301 -7.2 

Undercapitalized ................. .. ................................................ . 6,184 2,421 10,686 -42.1 

Significantly undercapitalized .............................................. . 220 107 23,865 -99.1 

Critically undercapitalized ..................................................... . 0 2,162 9,661 -100.0 

Preliminary 

Full Year Full Year 1st Qtr 1st Qtr 3⁄4Change 

INCOME DATA 1993 1992 3⁄4Change 1994 1993 93:1-94:1 

Net interest income............................................... $23,107 $24,764 -6.7 $5,725 $6,075 -5.8 

Provision for loan losses....................... .......... ...... 2,878 3,968 -27.5 531 614 -13.6 

Net income............................................................ 5,400 5,393 0.1 768 1,864 -58.8 

Net charge-offs.... .. ................. .. ............................. 2,425 2,471 -1.9 551 530 4.0 

Number of institutions reporting net losses........... 104 143 -27.3 112 95 17.9 

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

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

FDIC Quarterly Banking Profile 

SAIF-Member Depository Institutions 16 First Quarter, 1994 
Number of FDIC- Insured 11

Problem11 Institutions 

1990 - 1994 

Number of Institutions 

2000 - Commercial Banks 

Savings Institutions 

1,492 1,426 1500 1,362 1,305 1,227 

1,063 

1000 

500 

0 

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

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

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

Assets of FDIC - Insured 11Problem11 Institutions 

1990 - 1994 

Amounts in Billions 

1,000 - Commercial Banks 

819 Savings Institutions 809 

800 740 711 

640 

592 

600 544 

400 

200 

0 

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

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

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

FDIC Quarterly Banking Profile 

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

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

Corporation (FDIC). These notes are an integral part of this 

publication and provide information regarding the comparability of 

source data and reporting differences over time. The information 

presented in the FDIC Quarterly Banking Profile is divided into the 

following groups of institutions: 

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

This section covers commercial banks insured by the FDIC either 

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

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

commercial bank regulators (the Board of Governors of the Federal 

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

Currency). 

FDIC-Insured Savings Institutions (Tables 1-B through V-8.) 

This section covers savings institutions insured by either BIF or 

SAIF that operate under state or federal banking codes applicable 

to thrift institutions, except for one self-liquidating institution 

primarily funded by the FSLIC Resolution Fund (FRF). Savings 

institutions that have been placed in Resolution Trust Corporation 

conservatorship are also excluded from these tables while in 

conservatorship. The institutions covered in this section are regulated by and submit financial reports to one of two Federal 

regulators - the FDIC or the Office of Thrift Supervision (OTS). 

FDIC-Insured Institutions by Insurance Fund 

(Tables 1-C through 11-E.) 

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

membership. BIF-member institutions may acquire SAIF-insured 

deposits, resulting in institutions with some deposits covered by 

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

institution's deposits. Therefore, the BIF-member and the SAIFmember tables each include deposits from both insurance funds. 

Depository institutions that are not insured by the FDIC through 

either the BIF or SAIF are not included in the FDIC Quarterly 

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

foreign countries and non-deposit trust companies are not included. Efforts are made to obtain financial reports for all active 

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

available for institutions that are closed or converted their charter. 

DATA SOURCES 

The financial information appearing in this publication is obtained 

primarily from the Federal Financial Institutions Examination Council (FFIEC) 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 Financial Time 

Series (FTS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial Reports 

to provide closer conformance with the reporting and accounting 

requirements of the FFIEC Call Reports. The detailed schedules 

of the Thrift Financial Report reflect the consolidation of the parent 

thrift with all finance subsidiaries. All other subsidiaries are 

reported as investments on an equity basis or a cost basis. Some 

accounting differences exist, such as asset sales with recourse, 

for which the data necessary to reconcile these differences are not 

reported. 

All asset and liability figures used in calculating performance ratios 

represent average amounts for the period (beginning-of-period 

amount plus end-of-period amount plus any interim periods, 

divided by the total number of periods). For "pooling-of-interest'' 

mergers, the assets of the acquired institution(s) are included in 

average assets since the year-to-date income includes the results 

of all merged institutions. No adjustments are made for "purchase 

accounting" mergers. Growth rates represent the percentage 

change over a 12-month period in totals for institutions in the base 

period to totals for institutions in the current period. Tables Ill and 

IV do not provide growth rates for the "Asset Size Distribution" since 

many institutions migrate between size groups. 

RECENT ACCOUNTING CHANGES 

FASB Statement 115, "Accounting for Certain Investments in Debt 

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

trading accounts be measured at either amortized cost or fair 

(market) value, depending on their classification category. 

Securities classified as held-to-maturity are to be measured on an 

amortized cost basis; securities classified as available-for- sale are 

to be measured at fair value with any unrealized appreciation or 

depreciation, net of tax effects, reported in a separate component 

of equity capital. FASB 115 must be adopted for Call Report 

purposes for fiscal years beginning after December 15, 1993, with 

earlier application permitted in certain circumstances. It is noted 

that some institutions chose to adopt FASB 115 at an earlier date. 

Prior to the adoption of FASB 115, securities not held in trading 

accounts were measured at amortized cost if classified as held-tomaturity, or lower of cost or market if classified as held-for-sale. 

FASB Interpretation 39, "Offsetting of Amounts Related to Certain 

Contracts." Covers fair value amounts recognized as assets and 

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

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

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

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

swaps, and other conditional and exchange contracts). FASB 

Interpretation 39 specifies that for these types of contracts it is 

improper to net related assets and liabilities on financial statements, unless a right of setoff exists. A list of specific criteria must 

be met for the right of setoff to exist. FASB interpretation 39 must 

be adopted for fiscal years beginning after December 15, 1993. 

Prior to adoption of FASB Interpretation 39, asset and liability 

amounts for these types of contracts were typically reported as net 

amounts on the Call Report without regard to setoff. 

DEFINITIONS (in alphabetical order) 

All other assets - total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real estate, investment in unconsolidated subsidiaries, customers' liability 

on acceptances outstanding, assets held in trading accounts, 

federal funds sold, securities purchased with agreements to resell, 

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

limited the netting of related trading assets and liabilities, which 

had the effect of increasing the amount of trading account assets 

reported. 

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

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

revaluation losses on assets held in trading accounts. 

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

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

amount acquired from BIF members. 

Capital category distribution - each institution's capital 

category is calculated or estimated from its financial report and 

does not reflect supervisory upgrades or downgrades: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible Capital• Capital• Leverage Equity 

Well-capitalized ~10% and ~% and ~5% 

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

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

Significantly 

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

Critically undercapitalized - :c:;2% 

•Asa percentage of risk-weighted assets. 

Construction and development loans - includes loans for all 

property types under construction, as well as loans for land acquisition and development. 

Core capital - common equity capital plus noncumulative perpetual preferred stock plus minority interest in consolidated subsidiaries, less goodwill and other ineligible intangible assets. The 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 18 First Quarter, 1994 
amount of eligible intangibles (including mortgage servicing rights) 

included in core capital is limited in accordance with supervisory 

capital regulations. 

Cost of funding earning assets - total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets. 

Direct and indirect investments in real estate - excludes loans 

secured by real estate and property acquired through foreclosure. 

Earning assets - all loans and other investments that earn 

interest or dividend income. 

Estimated insured deposits - estimated amount of insured 

deposits (account balances less than $100,000) . The sum of all 

deposit balances in accounts of less than $100,000 plus the 

number of accounts with balances greater than $100,000 multiplied by $100,000. 

Failed/assisted institutions -An institution fails when regulators 

take control of the institution, placing the assets and liabilities into 

a bridge bank, conservatorship, receivership, or another healthy 

institution. This action may require the FDIC - or the RTC - to 

provide funds to cover losses. An institution is defined as "assisted" when the institution remains open and receives some 

insurance funds in order to continue operating. 

FHLB advances - borrowings from the Federal Home Loan Bank 

(FHLB) reported by institutions that file a Thrift Financial Report. 

Institutions that file a Ca// Report do not report borrowings ("advances") from the FHLB separately. 

Goodwill and other intangibles - intangible assets include 

mortgage servicing rights, purchased credit card relationships and 

other identifiable intangible assets. 

Loans secured by real estate - includes home equity loans, 

junior liens secured by 1-4 family residential properties and all other 

loans secured by real estate. 

Loans to individuals -includes outstanding credit card balances 

and other secured and unsecured consumer loans. 

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

remaining maturities or repricing intervals of over five years. 

Mortgage-backed securities - certificates of participation in 

pools of residential mortgages and collateralized mortgage obligations issued or guaranteed by government-sponsored or private 

enterprises. Effective 3/31/94, the full implementation of FASB 115 

meant that a portion of banks' mortgage-backed securities portfolio 

is now reported based upon fair (market) values; previously, all 

mortgage-backed securities not in held trading accounts were 

reported at either amortized cost or lower of cost or market. 

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

from balance sheet because of uncollectibility), less amounts 

recovered on loans and leases previously charged off. 

Net interest margin - the difference between interest and 

dividends earned on interest-bearing assets and interest paid to 

depositors and other creditors, expressed as a percentage of 

average earning assets. No adjustments are made for interest 

income that is tax exempt. 

Net operating income - income excluding discretionary transactions such as gains (or losses) on the sale of investment securities 

and extraordinary items. Income taxes subtracted from operating 

income have been adjusted to exclude the portion applicable to 

securities gains (or losses). 

Noncurrent assets - the sum of loans, leases, debt securities 

and other assets that are 90 days or more past due, or in nonaccrual status. Noncurrent debt securities and other assets were not 

included prior to March 1991. 

Noncurrent loans & leases - the sum of loans and leases 90 

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

Number of institutions reporting - the number of institutions 

that actually filed a financial report. 

Off-balance-sheet derivatives - represents the sum of the following: interest-rate contracts, defined as: the notional value of 

interest-rate swaps, futures and forward contracts and option contracts; foreign-exchange-rate contracts and commodity and equity 

contracts (defined similarly to interest-rate contracts). 

FDIC Quarterly Banking Profile 

Other borrowed funds-federal funds purchased, securities sold 

with agreements to repurchase, demand notes issued to the U.S. 

Treasury, other borrowed money, mortgage indebtedness and 

obligations under capitalized leases. Effective 3/31/94, includes 

newly-reported item "Trading liabilities," less revaluation losses on 

assets held in trading accounts. 

Other real estate owned - primarily foreclosed property. Direct 

and indirect investments in real estate ventures are excluded. The 

amount is reflected net of valuation allowances. For institutions 

that file a Thrift Financial Report (TFR), the valuation allowance 

subtracted also includes allowances for other repossessed assets. 

Also, for TFR filers the components of other real estate owned are 

reported gross of valuation allowances. 

Percent of institutions with earnings gains - the percent of 

institutions that increased their net income (or decreased their 

losses) compared to the same period a year earlier. 

"Problem" institutions - Federal regulators assign a composite 

rating to each financial institution, based upon an evaluation of 

financial and operational criteria. The rating is based on a scale of 

1 to 5 in ascending order of supervisory concern. "Problem" institutions are those institutions with financial, operational, or managerial 

weaknesses that threaten their continued financial viability. 

Depending upon the degree of risk and supervisory concern, they 

are rated either a "4" or "5". For all BIF-member institutions, and 

for all SAIF-member institutions for which the FDIC is the primary 

federal regulator, FDIC composite ratings are used. For all SAIFmember institutions whose primary federal regulator is the OTS, 

the OTS composite rating is used. 

Restructured loans and leases - loan and lease financing 

receivables with terms restructured from the original contract. 

Excludes restructured loans and leases that are not in compliance 

with the modified terms. 

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

securities and extraordinary items) as a percentage of average 

total assets. The basic yardstick of bank profitability. 

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

securities and extraordinary items) as a percentage of average 

total equity capital. 

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

definitions which include on-balance-sheet as well as off-balancesheet items multiplied by risk-weights that range from zero to 100 

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

equivalent amount for selected off-balance-sheet accounts. 

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

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

amount acquired from SAIF members. 

Securities - excludes securities held in trading accounts. Effective 3/31/94, the full implementation of FASB 115 meant that a 

portion of banks' securities portfolios is now reported based upon 

fair (market) values; previously, all securities not in held trading 

accounts were reported at either amortized cost or lower of cost or 

market. 

Troubled real estate asset rate - noncurrent real estate loans 

plus other real estate owned as a percent of total real estate loans 

and other real estate owned. 

Unused loan commitments - includes credit card lines, home 

equity lines, commitments to make loans for construction, loans 

secured by commercial real estate, and unused commitments to 

originate or purchase loans. 

Volatile liabilities-the sum of large-denomination time deposits, 

foreign-office deposits, federal funds purchased, securities sold 

under agreements to repurchase, and other borrowings. Beginning 

3/31/94, new reporting detail permits the exclusion of other borrowed money with original maturity of more than one year; previously, all other borrowed money was included. Also beginning 

3/31/94, the newly-reported item "Trading liabilities," less revaluation losses on assets held in trading accounts, is included. 

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

earned on loans and investments as a percentage of average 

earning assets. 

First Quarter, 1994 19 All FDIC-Insured Institutions