Third Quarter 1997 COMMERCIAL BANKING PERFORMANCE — THIRD QUARTER 1997 

• Industry Earnings Set Third Consecutive Quarterly Record 

• Net Income Of $14.8 Billion Surpasses Previous Quarter’s Record 

By $131 Million 

• Credit-Card Lenders Bounce Back From Weak 2nd-Quarter Performance 

• Rise In Earnings Is Limited By Restructuring And Merger Expenses 

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 

For a third consecutive quarter, insured commercial banks reported record earnings. Industry net 

income for the third quarter totaled $14.8 billion, 

an increase of $131 million over the previous record, set in the second quarter. Industry earnings 

were $1.6 billion (12.3 percent) higher than in the 

third quarter of 1996, when a one-time special assessment to capitalize the Savings Association 

Insurance Fund reduced bank profits by an estimated $650 million. The annualized return on assets (ROA) in the third quarter was 1.22 percent, 

down slightly from 1.24 percent in the second 

quarter, but above the 1.19 percent of a year ago. 

Commercial bank earnings through the first nine 

months of 1997 totaled $43.9 billion, an increase 

of $5.3 billion (13.8 percent) compared to the first 

nine months of 1996. The industry’s ROA for the 

nine-month period was 1.24 percent, up from 

1.19 percent in the same period of 1996. Almost 

three-quarters of all commercial banks had ROAs 

of one percent or higher for the third quarter (73.4 

percent) and a similar proportion (72.1 percent) 

had ROAs of one percent or higher for the first 

nine months of 1997. 

The increase in quarterly earnings was supported 

by resurgent earnings at credit-card specialty 

banks, and by higher trading profits at a few large 

banks. In the second quarter, restructuring charges and the expense of boosting reserves at some 

large credit-card banks caused profits for that 

group of institutions to dip sharply. Commercial 

banks specializing in credit-card lending saw 

their profits drop from $1.1 billion in the first quarter of 1997 to $623 million in the second quarter, 

and their annualized ROA decline from 2.03 percent to 1.30 percent. In the third quarter, profits of 

this group more than doubled, to $1.3 billion, and 

the annualized quarterly ROA rose to 2.59 percent. Without this $634-million increase in their 

quarterly profits, total industry earnings would 

have declined compared to the second quarter. 

Quarterly Net Income, 1993–1997 

$ Billions 

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

10.8 10.3 

11.5 

10.8 11.1 11.2 

11.8 

10.7 11.1 

12.0 

13.8 

12.0 12.0 

13.8 

13.2 13.7 

14.514.714.8 

Net Operating Income 

Securities and Other Gains, Net 

0 

1993 1994 1995 1996 1997 

Noninterest income was $2.1 billion (8.3 percent) 

higher than in the second quarter, while net interest income rose $709 million (1.6 percent). Compared to a year ago, they were up by $4.4 billion 

(19.3 percent) and $2.8 billion (6.7 percent), respectively. Commercial banks set aside $5.0 billion in provisions for loan losses in the third 

quarter, a decline of $72 million from the previous 

quarter, but $1 billion (25.5 percent) more than a 

year earlier. The quarterly decline in provisions 

was primarily due to a $227-million drop in provisioning at credit-card banks. Noninterest exRequests for copies of and subscriptions to the FDIC Quarterly Banking Profile should be made through the FDIC’s Public 

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

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

the FDIC’s Institution Directory (I.D.) System on this Web site. 
penses were $2.4 billion (5.7 percent) higher than in the 

second quarter, and $3.6 billion (9.0 percent) higher 

than a year ago. One-time charges stemming from 

mergers, plus a large restructuring expense added 

nearly $1 billion to third-quarter noninterest expenses. 

The effect of the increased noninterest expenses is evident in the higher third-quarter “efficiency ratio” for the 

largest banks – those with assets of $10 billion or more – 

compared to that of banks with $1 billion - $10 billion in 

assets. This ratio measures the proportion of net operating revenues that are consumed by overhead expenses, so that a lower value indicates greater 

efficiency. The long-term trend for banks of all sizes has 

been in the direction of greater efficiency, owing to cost 

controls and a rising contribution from noninterest income sources. 

Annual Efficiency Ratios,* 1988–1997 

Efficiency Ratio (%) 

80 

70 

60 

Assets < $100 Million 

Assets > $100 Million 58.64 

63.63 

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997** 

* Noninterest expense less amortization of intangible assets as a percent of net interest income 

plus noninterest income. 

** Through September 30 

The improvement in net interest income was attributable to growth in interest-earning assets, as net interest 

margins declined for the third time in the last four quarters. The industry’s margin declined to 4.23 percent in 

the third quarter, from 4.26 percent in the second quarter, and 4.33 percent a year ago. The cost of funding 

earning assets rose more rapidly during the quarter (5 

basis points) than average asset yields (2 basis points). 

Smaller banks had less margin erosion than larger institutions. Banks’ interest-earning assets increased by 

$85.1 billion (2.1 percent) during the third quarter, and 

are $357.7 billion (9.3 percent) higher than a year ago. 

Loan growth slowed considerably from the previous 

quarter, as banks’ inventories of credit-card loans declined, and loans to commercial and industrial borrowers registered their smallest increase since the second 

quarter of 1996. Real estate loan growth remained 

strong, in both residential and commercial categories. 

Total loans increased by $37.1 billion in the third quarter, 

after increasing $93.9 billion in the previous quarter. 

Credit-card loans held by commercial banks declined by 

Quarterly Net Interest Margins, 1993–1997 

Net Interest Margin (%) 

5.0 

4.5 

4.0 

Assets < $100 Million 

Assets > $100 Million 

4.76% 

4.20% 

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

1993 1994 1995 1996 1997 

$4.9 billion, but this decline was caused by a $12.0-

billion increase in the amount of credit-card loans that 

banks have securitized and sold. Commercial and industrial loans increased by $10.0 billion, compared to a 

$23.1-billion increase in the second quarter. Real estate loans increased by $32.2 billion, after rising by 

$38.2 billion in the previous quarter. Growth in construction and home equity loans was especially strong. 

Banks’ securities holdings increased by $15.1 billion, 

with $3.3 billion of the rise (21.6 percent) attributable to 

appreciation in market values of “available-for-sale” securities. Almost all of the increase in securities occurred 

in mortgage-backed securities and collateralized mortgage obligations (CMOs). Bank holdings of U.S. Treasury securities declined by $7.0 billion (4.2 percent). 

Liability growth was concentrated in short-term borrowings and large time deposits. Jumbo CDs increased by 

$31.0 billion, while fed funds purchased and securities 

sold under repurchase agreements increased by $27.9 

billion. In contrast, demand deposits declined by $41.0 

billion during the quarter. 

Asset quality indicators remained largely favorable, with 

the exception of credit-card loans and other loans to 

consumers. Delinquent loans – those 30-89 days past 

due on scheduled payments – increased by $232 million (0.7 percent) during the quarter, fueled by a $406-

million increase in delinquent credit-card loans and a 

$276-million increase in delinquencies on other (nonmortgage) consumer loans. Delinquent home mortgage loans increased by $320 million during the quarter, 

but the delinquency rate on banks’ home mortgage 

loans only increased from 1.43 percent to 1.45 percent. 

Noncurrent loans increased by $119 million, after declining in each of the previous three quarters, but remained below the level of a year ago. Net loan chargeoffs of $4.8 billion were the highest quarterly total since 

the fourth quarter of 1993. Credit-card loans accounted 

for 62.6 percent ($3.0 billion) of all loan charge-offs. 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 Third Quarter 1997 
Credit Card Charge-Off Rates

Personal

Bankruptcy

Filings

Credit-Card Loss Rates and Personal Bankruptcy Filings, 

1984–1997 

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

7 400

6 350

5 300

4 250

3 200

2 150

1 100

0 50 1 234 1 234 1 234 1 234 1 234 1 234 1 234 1 234 1 234 1 234 1 234 1 234 1 234 1 2 3

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

Sources: Bankruptcies - Administrative Office of the United States Courts

Charge-Off Rates - Commercial Bank Call Reports

Commercial banks’ equity capital increased by $12.6 billion 

(3.1 percent) in the third quarter. Their equity-capital-toassets ratio rose to 8.53 percent, from 8.44 percent at midyear. Retained earnings contributed $6.2 billion, and higher 

unrealized gains on available-for-sale securities 

added $2.2 billion to the increase in equity. Banks 

increased their reserves against future credit 

losses by $380 million (0.7 percent). The industry’s “coverage ratio” remained at $1.91 in reserves for every $1.00 in noncurrent loans, while 

the ratio of reserves to total loans declined by one 

basis point, from 1.90 percent to 1.89 percent. 

The number of insured commercial banks reporting financial results declined by 93 institutions during the third quarter, to 9,215 at the end of 

September. Mergers and consolidations absorbed 148 commercial banks, with 58 of the 

banks absorbed by out-of-state institutions. There 

were 46 new banks chartered, and 8 insured savings institutions converted to commercial bank 

charters. One commercial bank converted to a 

thrift charter during the quarter. For the fourth consecutive quarter, no insured commercial banks 

failed. At the end of the third quarter, there were 71 

insured commercial banks, with assets of $5 billion, on the FDIC’s “Problem List,” down from 74 

“problem” banks at midyear. 

Noncurrent Loan Rates* 

September 30, 1997 

Alaska

0.8

Arizona

1.2

California

0.9

Hawaii

1.8

Idaho

0.8

Montana

Nevada

1.6

Oregon

0.5

Washington

0.8

West Midwest 

Southwest 

Greater than 1.5%

Between .75% and 1.5%

Utah

1.3

Alabama

0.7

Arkansas

1.0

Colorado

0.6

CT: 1.9

DE: 2.2

DC: 0.3

FL

0.8

Georgia

0.8

Illinois

0.9

IN

0.8

Iowa

MS

0.8

Kansas

1.0 Missouri Kentucky

Ohio

0.7

LA

0.9

Maine

1.0

MD: 0.9

MA: 0.8

Michigan

0.7

Minnesota

0.7

1.2

1.1

NH: 1.7

NJ: 1.1

New Mexico

0.9

NY

1.2

N. Carolina

0.7

North

Dakota

1.3

1.0

Oklahoma

1.0

RI: 0.9

South

0.7

0.8

Nebraska

1.2

Pennsylvania

S. Carolina

0.5

Dakota

1.7

Tennessee

1.1

Texas

0.8

VT: 1.2

Virginia

1.0

WV

1.1

Wisconsin

0.9

Wyoming

0.6

Puerto

Rico

2.2

Northeast 

Southeast 

Central 

* Noncurrent loan rates represent the percentage of loans that

Less than .75% are past due 90 days or more or in nonaccrual status.

FDIC Quarterly Banking Profile 

Third Quarter 1997 3 FDIC-Insured Commercial Banks 
TABLE I-A. Selected Indicators, FDIC-Insured Commercial Banks 

1997* 1996* 1996 1995 1994 1993 1992 

Return on assets (%)................................................ 1.24 1.19 1.19 1.17 1.15 1.20 0.93 

Return on equity (%)................................................. 14.71 14.40 14.46 14.66 14.61 15.34 12.98 

Core capital (leverage) ratio (%)............................... 7.77 7.79 7.64 7.61 7.64 7.65 7.21 

Noncurrent assets plus

 other real estate owned to assets (%).................... 0.68 0.80 0.75 0.85 1.01 1.61 2.54 

Net charge-offs to loans (%)..................................... 0.62 0.56 0.58 0.49 0.50 0.85 1.27 

Asset growth rate (%)................................................ 9.22 5.41 6.16 7.53 8.21 5.72 2.19 

Net interest margin (%)............................................. 4.22 4.26 4.27 4.29 4.36 4.40 4.41 

Net operating income growth (%)............................. 13.73 4.04 6.45 7.48 16.18 35.36 92.41 

Number of institutions reporting................................ 9,215 9,586 9,528 9,940 10,451 10,958 11,462 

Percentage of unprofitable institutions...................... 3.97 3.81 4.23 3.55 3.98 4.89 6.85 

Number of problem institutions................................. 71 89 82 144 247 426 787 

Assets of problem institutions (in billions)................. $5 $7 $5 $17 $33 $242 $408 

Number of failed/assisted institutions....................... 0 5 5 6 11 42 100 

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

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

(dollar figures in millions) 

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

Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter %Change 

1997 1997 1996 96:3-97:3 

9,215 9,308 9,586 -3.9 

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

CONDITION DATA 

1,523,996 1,513,875 1,479,568 3.0 

Total assets............................................................................. $4,869,450 $4,771,298 $4,458,480 9.2

 Loans secured by real estate............................................ 1,226,822 1,194,628 1,115,689 10.0

 Commercial & industrial loans........................................... 765,210 755,215 698,733 9.5

 Loans to individuals........................................................... 554,591 557,740 548,985 1.0

 Farm loans........................................................................ 45,021 43,663 42,042 7.1

 Other loans & leases......................................................... 316,723 320,469 338,155 -6.3

 Less: Unearned income.................................................... 4,750 5,144 5,583 -14.9

 Total loans & leases............................................................ 2,903,619 2,866,570 2,738,022 6.0

 Less: Reserve for losses..................................................... 54,917 54,537 53,687 2.3

 Net loans & leases................................................................ 2,848,702 2,812,034 2,684,334 6.1

 Securities............................................................................... 835,521 820,463 799,475 4.5

 Other real estate owned........................................................ 4,137 4,380 5,034 -17.8

 Goodwill and other intangibles.............................................. 58,871 56,739 43,543 35.2

 All other assets...................................................................... 1,122,220 1,077,683 926,094 21.2 

Total liabilities and capital....................................................... 4,869,450 4,771,298 4,458,480 9.2

 Noninterest-bearing deposits................................................ 629,330 668,037 628,425 0.1

 Interest-bearing deposits....................................................... 2,675,596 2,611,686 2,467,654 8.4

 Other borrowed funds............................................................ 822,251 788,563 723,306 13.7

 Subordinated debt................................................................. 55,096 54,285 48,502 13.6

 All other liabilities................................................................... 271,752 245,895 220,196 23.4

 Equity capital......................................................................... 415,425 402,831 370,397 12.2 

Loans and leases 30-89 days past due.................................. 35,388 35,156 34,756 1.8 

Noncurrent loans and leases.................................................. 28,723 28,604 30,399 -5.5 

Restructured loans and leases................................................ 2,724 3,396 4,007 -32.0 

Direct and indirect investments in real estate......................... 655 635 563 16.3 

1-4 Family residential mortgages............................................ 708,175 690,416 640,203 10.6 

Mortgage-backed securities.................................................... 360,247 345,718 327,508 10.0 

Earning assets......................................................................... 4,214,511 4,129,402 3,856,819 9.3 

Long-term assets (5+ years)................................................... 738,579 698,529 628,598 17.5 

Volatile liabilities...................................................................... 1,580,420 1,520,396 1,384,079 14.2 

Foreign office deposits............................................................ 507,048 504,198 451,054 12.4 

Unused loan commitments...................................................... 2,966,288 2,834,746 2,447,382 21.2 

Off-balance-sheet derivatives................................................. 25,679,304 23,831,440 20,385,221 26.0 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

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

Qtrs 1997 Qtrs 1996 %Change 1997 1996 96:3-97:3 

$250,915 $231,676 8.3 $86,023 $78,881 9.1 

121,110 111,105 9.0 41,831 37,446 11.7

129,805 120,571 7.7 44,192 41,435 6.7 

14,269 11,761 21.3 4,959 3,952 25.5 

77,281 68,742 12.4 27,367 22,947 19.3 

125,556 118,952 5.6 43,777 40,173 9.0 

974 721 35.1 256 169 51.7 

24,353 20,796 17.1 8,313 7,273 14.3 

44 89 -50.3 9 (0) N/M

43,927 38,614 13.8 14,776 13,153 12.3 

13,193 11,062 19.3 4,765 3,780 26.1 

26,428 25,791 2.5 8,572 10,864 -21.1

43,244 38,025 13.7 14,593 13,064 11.7 
 

 

 

 

TABLE III-A. First Three Quarters 1997, FDIC-Insured Commercial Banks 

FIRST THREE QUARTERS Preliminary 

 (The way it is . . . ) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

9,215 5,978 2,874 297 66 724 1,536 2,021 2,343 1,613 978 

Total assets (in billions)............................ $4,869.5 $272.3 $711.0 $899.8 $2,986.4 $1,840.1 $898.5 $793.4 $329.2 $341.4 $666.9 

Total deposits (in billions)......................... 3,304.9 233.2 587.7 615.9 1,868.1 1,108.0 618.9 568.8 248.5 278.0 482.7 

Net income (in millions)............................. 43,927 2,489 7,146 8,584 25,708 15,059 8,648 7,352 3,354 3,040 6,474 

% of unprofitable institutions..................... 4.0 5.6 0.9 1.7 NA 3.9 5.5 3.5 1.9 3.3 8.9 

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

Performance Ratios (annualized, %) 

67.9 63.9 75.4 72.7 78.8 72.5 69.5 71.5 63.5 64.6 70.4 

Yield on earning assets............................. 8.16 8.36 8.40 8.59 7.94 7.99 8.09 8.17 8.66 7.84 8.63 

Cost of funding earning assets................. 3.94 3.69 3.68 3.87 4.06 4.33 3.76 3.92 3.83 3.41 3.52 

Net interest margin.................................... 4.22 4.68 4.72 4.72 3.89 3.65 4.33 4.26 4.83 4.44 5.11 

Noninterest income to earning assets...... 2.51 1.35 1.66 2.48 2.86 3.17 1.99 1.79 2.44 2.06 2.69 

Noninterest expense to earning assets.... 4.09 3.86 3.86 4.07 4.17 4.30 3.70 3.53 4.24 4.20 4.60 

Efficiency ratio........................................... 58.90 63.63 59.69 54.66 59.75 61.82 56.47 57.05 57.22 61.98 56.17 

Net operating income to assets................ 1.22 1.25 1.37 1.28 1.16 1.10 1.29 1.25 1.39 1.23 1.32 

Return on assets....................................... 1.24 1.25 1.39 1.30 1.18 1.14 1.30 1.27 1.40 1.24 1.31 

Return on equity........................................ 14.71 11.57 14.50 14.30 15.32 15.39 14.48 14.95 15.54 13.87 13.38 

Net charge-offs to loans and leases......... 0.62 0.23 0.33 1.03 0.58 0.71 0.44 0.48 0.83 0.33 0.83 

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

Condition Ratios (%) 

Loss allowance to:

108.16 159.51 132.57 117.83 96.94 100.55 124.20 123.12 111.98 115.11 97.77 

 Loans and leases.................................... 1.89 1.45 1.52 2.19 1.93 2.17 1.65 1.61 1.80 1.45 2.18

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

Noncurrent assets plus

191.19 137.16 162.10 195.39 202.58 174.83 207.07 185.90 199.79 168.49 228.86 

 other real estate owned to assets........... 0.68 0.77 0.71 0.82 0.62 0.72 0.61 0.62 0.68 0.55 0.77 

Equity capital ratio..................................... 8.53 10.96 9.69 9.34 7.79 7.39 9.29 8.68 9.20 8.98 9.92 

Core capital (leverage) ratio...................... 7.77 10.82 9.32 8.56 6.88 7.03 7.97 8.24 8.76 8.35 8.25 

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

PRIOR FIRST THREE QUARTERS

 (The way it was . . . ) 

86.20 68.29 73.82 94.92 89.45 82.92 93.20 90.68 87.43 65.85 90.55 

Number of institutions.......................1996 9,586 6,334 2,854 330 68 752 1,587 2,122 2,425 1,687 1,013 

.........................................1994 10,593 7,411 2,791 334 57 846 1,757 2,318 2,645 1,884 1,143 

.........................................1992 11,590 8,435 2,781 326 48 941 1,901 2,559 2,813 2,066 1,310 

Total assets (in billions)....................1996 $4,458.5 $285.1 $694.2 $1,035.0 $2,444.2 $1,687.5 $776.3 $704.8 $289.4 $327.9 $672.6 

.........................................1994 3,922.9 320.2 678.9 1,087.6 1,836.3 1,516.6 632.0 649.1 255.7 294.8 574.8 

.........................................1992 3,481.3 345.2 676.2 1,035.1 1,424.8 1,326.5 532.0 571.3 234.1 275.1 542.4 

Return on assets (%).......................1996 1.19 1.23 1.29 1.31 1.10 1.08 1.21 1.19 1.44 1.23 1.28 

.........................................1994 1.18 1.17 1.22 1.40 1.04 1.11 1.22 1.15 1.52 1.17 1.20 

.........................................1992 

Net charge-offs to loans & leases (%) 

0.94 1.12 1.04 1.04 0.77 0.81 1.04 1.01 1.27 1.11 0.85 

........................................1996 0.56 0.21 0.37 0.99 0.44 0.62 0.43 0.42 0.65 0.31 0.79 

.........................................1994 0.49 0.19 0.33 0.61 0.53 0.76 0.24 0.26 0.43 0.12 0.58 

.........................................1992 

Noncurrent assets plus

1.24 0.47 0.69 1.35 1.57 1.74 0.75 1.02 0.83 0.75 1.13 

 OREO to assets (%).....................1996 0.80 0.82 0.81 0.89 0.76 0.92 0.67 0.63 0.67 0.65 0.95 

.........................................1994 1.16 0.92 1.07 1.06 1.29 1.50 0.82 0.74 0.80 0.72 1.48 

.........................................1992 2.83 1.53 1.95 2.51 3.80 3.88 1.90 1.51 1.42 1.89 3.65 

Equity capital ratio (%)......................1996 8.31 10.57 9.45 8.96 7.44 7.39 8.52 8.62 8.86 8.89 9.53 

.........................................1994 7.95 9.99 8.97 8.28 7.02 7.40 7.96 8.02 8.89 8.50 8.61 

.........................................1992 7.39 9.55 8.28 7.67 6.23 6.57 7.75 7.87 8.68 7.48 7.91 
 

 

TABLE IV-A. Third Quarter 1997, FDIC-Insured Commercial Banks 

THIRD QUARTER Preliminary 

 (The way it is . . . ) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

9,215 5,978 2,874 297 66 724 1,536 2,021 2,343 1,613 978 

Total assets (in billions)............................ $4,869.5 $272.3 $711.0 $899.8 $2,986.4 $1,840.1 $898.5 $793.4 $329.2 $341.4 $666.9 

Total deposits (in billions)......................... 3,304.9 233.2 587.7 615.9 1,868.1 1,108.0 618.9 568.8 248.5 278.0 482.7 

Net income (in millions)............................. 14,776 883 2,567 3,104 8,222 4,961 3,000 2,525 1,074 1,026 2,190 

% of unprofitable institutions..................... 4.3 5.9 1.3 2.0 NA 4.8 5.2 3.9 2.6 3.7 8.5 

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

Performance Ratios (annualized, %) 

65.2 60.5 74.1 70.7 72.7 68.8 66.6 68.0 62.0 61.8 67.9 

Yield on earning assets............................. 8.24 8.54 8.54 8.85 7.94 8.03 8.17 8.22 8.91 7.95 8.73 

Cost of funding earning assets................. 4.01 3.79 3.78 3.98 4.10 4.42 3.74 3.98 4.03 3.50 3.55 

Net interest margin.................................... 4.23 4.76 4.76 4.87 3.84 3.61 4.43 4.24 4.89 4.44 5.18 

Noninterest income to earning assets...... 2.62 1.43 1.79 2.67 2.94 3.24 2.15 1.93 2.53 2.10 2.79 

Noninterest expense to earning assets.... 4.19 3.93 3.91 4.19 4.29 4.44 3.79 3.62 4.44 4.23 4.65 

Efficiency ratio........................................... 59.45 63.13 58.98 54.23 61.10 63.60 55.06 57.50 58.62 62.89 55.69 

Net operating income to assets................ 1.21 1.30 1.44 1.37 1.10 1.05 1.33 1.26 1.31 1.21 1.38 

Return on assets....................................... 1.22 1.31 1.46 1.39 1.11 1.09 1.35 1.28 1.32 1.23 1.32 

Return on equity........................................ 14.43 12.01 15.17 15.17 14.26 14.80 14.56 14.92 14.49 13.59 13.35 

Net charge-offs to loans and leases......... 0.66 0.24 0.35 1.10 0.62 0.74 0.48 0.54 0.90 0.39 0.86 

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

PRIOR THIRD QUARTERS

 (The way it was . . . ) 

104.07 149.98 131.00 117.14 90.49 94.18 121.61 107.34 114.34 118.72 98.65 

Return on assets (%)........................1996 1.19 1.26 1.27 1.31 1.11 1.12 1.17 1.21 1.46 1.23 1.24 

.........................................1994 1.21 1.20 1.27 1.40 1.08 1.17 1.21 1.14 1.62 1.12 1.26 

.........................................1992 

Net charge-offs to loans & leases (%) 

0.98 1.16 1.04 1.09 0.83 0.94 1.05 0.86 1.22 1.14 0.95 

.........................................1996 0.56 0.25 0.39 1.03 0.42 0.59 0.44 0.45 0.68 0.34 0.77 

.........................................1994 0.44 0.21 0.35 0.56 0.42 0.61 0.26 0.26 0.48 0.15 0.52 

.........................................1992 1.31 0.50 0.77 1.31 1.74 1.62 0.71 1.56 0.99 0.76 1.28 
TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

September 30, 1997 All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 1.18 1.34 1.02 1.15 1.25 1.26 1.13 1.29 0.99 1.29 1.05

 Construction and development............................. 1.22 1.16 1.09 1.35 1.23 1.04 1.02 1.73 1.18 1.16 1.17

 Commercial real estate......................................... 0.86 1.03 0.77 1.01 0.81 1.03 0.67 1.20 0.77 0.87 0.57

 Multifamily residential real estate.......................... 0.75 0.84 0.70 0.97 0.63 0.66 0.57 1.08 0.43 0.42 1.01

 Home equity loans................................................ 0.86 0.88 0.84 0.90 0.85 1.04 0.68 0.97 0.59 0.78 0.80

 Other 1-4 Family residential.................................. 1.45 1.69 1.25 1.26 1.57 1.44 1.48 1.38 1.24 1.72 1.49 

Commercial and industrial loans*........................... 0.80 1.40 1.32 1.14 0.53 0.42 0.79 1.29 1.47 1.25 0.71 

Loans to individuals................................................. 2.38 2.39 2.05 2.60 2.33 2.64 2.18 2.32 2.48 1.94 2.23

 Credit card loans................................................. 2.72 3.43 2.87 2.88 2.58 2.77 2.88 2.80 2.54 2.82 2.55

 Other loans to individuals...................................... 2.15 2.33 1.90 2.29 2.15 2.50 1.89 2.18 2.41 1.86 1.84 

All other loans and leases (including farm)............. 0.43 NA NA 1.03 0.37 0.35 0.38 0.86 0.42 0.57 0.27 

Memo: Commercial RE loans not secured by RE.. 

Percent of Loans Noncurrent** 

0.48 1.37 0.57 0.70 0.44 0.26 0.50 1.19 0.25 1.03 0.28 

All real estate loans................................................. 1.06 0.91 0.82 1.06 1.19 1.53 0.88 0.81 0.68 0.99 1.11

 Construction and development............................. 1.05 0.79 0.81 1.13 1.21 2.86 0.62 0.89 0.75 0.74 1.09

 Commercial real estate......................................... 1.35 1.02 0.96 1.30 1.69 2.38 0.94 1.04 0.78 1.09 1.42

 Multifamily residential real estate.......................... 1.08 0.88 0.92 1.05 1.20 1.25 0.79 0.86 0.46 0.36 1.94

 Home equity loans................................................ 0.42 0.44 0.40 0.41 0.43 0.62 0.32 0.34 0.14 0.15 0.49

 Other 1-4 Family residential.................................. 0.94 0.82 0.73 1.00 1.01 1.12 0.97 0.73 0.60 0.98 0.97 

Commercial and industrial loans*........................... 0.93 1.41 1.33 0.92 0.75 0.87 0.68 1.12 1.40 1.10 0.82 

Loans to individuals................................................. 1.37 0.91 0.80 1.52 1.45 2.12 0.89 0.93 1.21 0.58 1.21

 Credit card loans................................................. 2.01 2.12 1.93 2.09 1.95 2.29 1.57 1.96 1.77 1.10 1.88

 Other loans to individuals...................................... 0.94 0.84 0.60 0.90 1.09 1.92 0.61 0.64 0.65 0.53 0.42 

All other loans and leases (including farm)............. 0.29 NA NA 0.48 0.28 0.25 0.24 0.33 0.33 0.23 0.39 

Memo: Commercial RE loans not secured by RE.. 

Percent of Loans Charged-off (net YTD, annual 

0.56 1.62 0.38 0.48 0.56 0.89 0.30 0.50 0.23 0.44 0.52 

All real estate loans................................................. 0.05 0.03 0.06 0.04 0.06 0.10 0.04 0.03 0.02 -0.02 0.07

 Construction and development............................. -0.02 0.02 0.06 -0.01 -0.09 0.09 -0.01 0.02 0.12 -0.27 -0.10

 Commercial real estate......................................... 0.00 0.03 0.05 0.00 -0.04 0.02 0.02 0.00 -0.05 -0.05 -0.01

 Multifamily residential real estate.......................... 0.04 0.12 0.09 0.05 0.01 0.06 0.00 0.07 0.00 -0.02 0.09

 Home equity loans................................................ 0.15 0.11 0.08 0.15 0.17 0.14 0.09 0.13 0.08 0.53 0.26

 Other 1-4 Family residential.................................. 0.07 0.04 0.06 0.06 0.09 0.11 0.06 0.04 0.04 0.04 0.11 

Commercial and industrial loans*........................... 0.25 0.34 0.34 0.26 0.21 0.18 0.15 0.28 0.67 0.24 0.34 

Loans to individuals................................................. 2.65 0.72 1.33 3.27 2.76 3.12 2.02 2.00 2.86 1.27 3.65

 Credit card loans................................................. 5.10 3.29 4.40 5.38 4.99 5.04 4.57 5.63 5.00 4.56 5.43

 Other loans to individuals...................................... 0.98 0.54 0.72 0.89 1.17 1.05 0.91 0.89 0.70 0.97 1.36 

All other loans and leases (including farm)............. 0.08 NA NA 0.19 0.06 -0.04 0.15 0.16 0.18 0.13 0.20 

Memo: Commercial RE loans not secured by RE.. 

Loans Outstanding (in billions) 

-0.04 1.96 0.16 0.05 -0.08 -0.17 -0.02 0.12 0.03 0.02 -0.04 

All real estate loans................................................. $1,226.8 $90.4 $271.5 $264.8 $600.2 $312.5 $315.0 $236.2 $96.5 $78.6 $188.0

 Construction and development............................. 86.1 6.3 23.5 21.3 34.9 10.4 27.1 17.0 7.4 8.9 15.2

 Commercial real estate......................................... 336.1 23.8 92.6 77.0 142.7 71.7 82.3 69.2 26.3 26.4 60.1

 Multifamily residential real estate.......................... 39.9 2.0 8.9 10.6 18.4 11.4 8.4 7.5 3.2 2.4 6.9

 Home equity loans................................................ 96.1 2.2 13.4 20.8 59.7 23.9 24.1 23.0 4.7 1.0 19.3

 Other 1-4 Family residential.................................. 612.1 45.3 123.1 131.5 312.2 167.8 168.3 112.7 46.2 36.8 80.4 

Commercial and industrial loans............................. 765.2 26.2 76.7 125.6 536.8 288.6 123.4 140.0 46.1 50.7 116.3 

Loans to individuals................................................. 554.6 24.5 69.6 165.7 294.9 187.9 104.8 94.8 48.9 38.1 80.0

 Credit card loans................................................. 220.4 1.4 10.8 85.1 123.1 97.9 30.5 21.2 24.6 3.1 43.2

 Other loans to individuals...................................... 334.2 23.1 58.8 80.5 171.8 90.0 74.3 73.6 24.3 35.1 36.8 

All other loans and leases (including farm)............. 361.7 21.2 24.1 42.5 273.8 152.2 44.1 53.7 29.7 18.9 63.1 

Memo: Commercial RE loans not secured by RE.. 

Memo: Other Real Estate Owned (in millions) 

26.4 0.2 1.0 3.2 22.0 7.0 4.3 3.2 1.7 2.1 8.1 

All other real estate owned..................................... $4,136.6 $384.3 $926.9 $722.9 $2,102.5 $1,485.5 $852.5 $396.4 $234.9 $288.5 $878.8

 Construction and development............................. 496.9 47.5 160.9 108.5 179.9 120.2 185.8 35.5 42.1 23.9 89.4

 Commercial real estate......................................... 1,895.1 167.6 432.8 341.5 953.1 609.0 353.8 208.3 97.0 156.4 470.4

 Multifamily residential real estate.......................... 208.0 12.1 39.4 47.1 109.5 131.0 22.1 6.9 8.2 3.3 36.5

 1-4 Family residential............................................ 1,152.9 118.8 260.1 201.4 572.6 334.6 281.5 139.5 64.4 77.3 255.7

 Farmland............................................................... 117.2 38.2 33.6 24.2 21.3 25.1 9.2 6.2 23.2 27.5 26.0

 Other real estate owned in foreign offices............ 266.5 0.1 0.1 0.1 266.1 265.6 0.1 0.0 0.0 0.0 0.8 

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

**Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status. 
4 

3 

2 

1 

SAVINGS INSTITUTION PERFORMANCE — THIRD QUARTER, 1997 

• Savings Institutions Earn $2.0 Billion In The Third Quarter 

• Acquisition Charges Lift Noninterest Expenses 

• Equity Capital Reaches Highest Level Since 1943 

• Movement Of Thrift Industry Assets To Commercial Banks Continues At 

Record Pace 

Savings institutions reported earnings of $2.0 billion 

in the third quarter of 1997, for an average 

annualized return on assets (ROA) of 0.79 percent. 

Earnings were $398 million lower than in the second 

quarter, primarily because of charges related to 

acquisitions. Noninterest expenses rose to $5.9 

billion, from $5.6 billion in the second quarter. One 

large institution reported acquisition-related 

charges in the third quarter that accounted for about 

two-thirds of the industry’s increase in noninterest 

expenses.1 Gains from the sales of securities 

declined by 45 percent, from $296 million in the 

second quarter to $162 million in the third quarter. 

Losses from the sales of securities at one institution 

accounted for 94 percent of the decline in securities 

gains. With the reduced earnings, income taxes 

declined by $184 million from the second quarter. 

More than 95 percent of savings institutions were 

profitable in the third quarter and 39 percent had 

ROAs of 1.00 percent or more. 

Savings institutions reported a loss of $34 million in 

the third quarter of 1996 because of the industry’s 

contribution of $3.5 billion for the one-time SAIF 

Quarterly Net Income, 1993–1997 

$ Billions 

1 Great Western Bank, a federal savings bank headquartered in 

Chatsworth, California, reported a $227 million increase in noninterest expense for the third quarter and a $108-million decline in 

noninterest income. These changes were related to its acquisition 

by a holding company. 

FDIC-Insured Savings Institutions 8 

assessment. Ninety percent of all savings 

institutions showed improved quarterly earnings 

from a year ago. For 1997, savings institutions are 

on pace to break the record earnings of $7.6 billion 

set in 1995. The industry earned $6.6 billion in the 

first three quarters of 1997, up by $1.7 billion over 

the same period in 1996, and within $1 billion of the 

annual record set in 1995. 

Net interest margins declined during the third quarter to 3.20 percent, from 3.25 percent in the second 

quarter, because of an increase in the cost of funding earning assets. The cost of funding earning assets rose 8 basis points, while the yield on earning 

assets rose by only 2 basis points. The increase in 

the cost of funding earning assets was greatest at 

large institutions, with over $5 billion in assets, 

which reported a 10-basis-point increase. Rising 

funding costs tend to appear later at smaller institutions. Net interest income fell by $136 million during 

the third quarter, due to narrower margins and the 

exodus of thrift industry assets to commercial 

banks. 

Quarterly Net Interest Margins 

1993–1997 Net Interest Margin (%) 

Securities and Other Gains, Net 4.0 Net Operating Income 

2.6 2.5 

Assets < $100 Million 

Assets > $100 Million 

3.57% 

3.18% 

2.4 

1.7 

1.2 

1.6 

1.3 

1.8 

1.9 

1.6 1.7 1.9 

2.2 

1.8 

-0.0 

2.2 

2.4 2.4 

2.0 

3.5 

0 3.0 

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

1993 1994 1995 199 6 1997 1993 1994 1995 199 6 1997 

The operating efficiency of large institutions has 

diverged from smaller institutions in recent years. 

The efficiency ratio – noninterest expense less 

amortization of intangible assets as a percent of net 

FDIC Quarterly Banking Profile 

Third Quarter 1997 
interest income plus noninterest income – improved 

from 66 percent for 1996 to 57 percent for the first 

three quarters of 1997. The one-time SAIF 

assessment in 1996 and the reduction in insurance 

premiums for 1997 helped move this ratio lower for 

all institutions. As recently as 1993 the difference 

between large and small institutions was very small, 

less than one percentage point. Since late 1993, 

small institutions, with assets of less than $100 

million, have shown some deterioration in their 

average efficiency ratio, which has risen from 64 

percent to just under 70 percent. However, large 

institutions, with assets of over $5 billion, have 

shown remarkable improvement as restructuring 

charges related to cleaning up asset quality 

problems have diminished. The efficiency ratio for 

this group has dropped from 62 percent at the end of 

1993 to just under 55 percent this quarter. Ten years 

ago the industry’s aggregate ratio was over 80 

percent. 

Annual Efficiency Ratios,* 1988–1997 

Efficiency Ratio (%) 

100 

90 

80 

70 

60 

Assets < $100 Million 

Assets > $100 Million 

69.81 

56.73 

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997** 

* Noninterest expense less amortization of intangible assets as a percent of net interest 

income plus noninterest income. 

** Through September 30 

Asset quality was little changed during the third 

quarter of 1997. The coverage ratio rose to 84 cents 

in reserves for each dollar of noncurrent loans, from 

83 cents at the end of the second quarter. This was 

the second consecutive quarter that a new record 

was set by the industry. Noncurrent loans declined 

by just $17 million as reserves rose by $90 million. 

Provisions for loan losses during the quarter were 

$637 million, 25 percent higher than net charge-offs 

of $508 million. Provisions have exceeded net 

charge-offs for eight consecutive quarters. 

However, loan-loss reserves remained just below 

one percent of total loans, the lowest level since 

1990. Reserve levels have not kept pace with loan 

growth. 

FDIC Quarterly Banking Profile 

Loan 

Reserves 

($) 

Noncurrent Loans ($) 

Coverage 

Ratio 

(%) 

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

Coverage Ratio and Reserve Levels,* 1993–1997 

$Billions Coverage Ratio (%) 

30 100 

25 

80 

20 

60 

15 

40 

10 

5 20 

1993 1994 1995 1996 1997 

*Loan-Loss reserves to Noncurrent Loans and Leases. 

The industry continues to increase the percentage 

of its balance sheet that is held in loans and to 

decrease the percentage held in securities. Total 

assets declined by $6.8 billion during the third 

quarter as securities fell by $10.7 billion. Loan 

growth continued with a 1.7 percent rise over yearago levels. Lending on real estate secured by 1-4 

family residential properties increased by $2.6 

billion during the quarter, while loans to individuals 

rose by $2.2 billion. Overall lending increased by 

$5.6 billion. Deposits fell by $12.3 billion during the 

quarter while non-deposit borrowings grew by $3.1 

billion. 

Equity capital increased to 8.63 percent of industry 

assets, the highest level since 1943. Equity capital 

received a $560-million boost from unrealized gains 

on available-for-sale securities. The industry also 

retained almost half of its $2.0 billion in quarterly 

earnings, but the absorption of thrifts into the 

commercial banking industry kept growth in equity 

capital down to $429 million. The core capital 

(leverage) ratio, which does not include unrealized 

gains on available-for-sale securities, increased to 

7.91 percent from 7.86 percent at the beginning of 

the quarter. This is the highest level achieved since 

this ratio was introduced in 1990. 

A decline of 40 in the number of savings institutions 

was driven by a record number of thrifts (33) 

migrating to the commercial banking industry. 

Commercial banks acquired 25 savings institutions 

with assets of $16.3 billion and 8 savings 

institutions, with $5.0 billion in assets, converted to 

commercial bank charters. This was the second 

consecutive quarter that there has been a record 

transfer to the commercial banking industry. 

Changes in tax laws a year ago removed the tax 

Third Quarter 1997 9 FDIC-Insured Savings Institutions 
penalty for recapture of a thrift’s bad-debt reserves 

when it converts to a commercial bank or is acquired 

by a bank. However, asset growth in individual 

savings institutions has limited the industry's overall 

decline in assets. In the last 12 months, assets 

decreased by $13 billion, or 1.3 percent. One dozen 

thrifts with $7.6 billion in assets were acquired by 

other thrifts and four new charters began operations 

during the third quarter. At the end of September the 

industry numbered 1,812 institutions. There were 

nine mutual-to-stock conversions during the third 

quarter involving $1.5 billion in assets. The number 

of “problem” institutions fell by two to 27 at the end of 

the quarter. Assets of “problem” institutions 

declined to $2.0 billion at the end of the third quarter 

from $2.8 billion at midyear. 

Noncurrent Loan Rates By State* 

Alaska

0.3 Hawaii

2.5

Arizona

0.3

California

1.2

Colorado

0.2

Idaho

0.3

Montana

0.4

Nevada

N/A

Oregon

0.5

Utah

1.2

Washington

0.5

Wyoming

0.7

West 

September 30, 1997 

Midwest 

Minnesota

0.5

North

Dakota

0.2

Wisconsin

0.4

Nebraska

0.7

Kansas

0.4

Iowa

1.0

Illinois

1.1

Missouri

0.7

Southwest 

Alabama

0.7

CT: 1.3

DE: 1.0

DC: 2.3

FL

0.8

Georgia

1.0

IN

0.9

Kentucky

0.8

Maine

1.2

MD: 2.1

MA: 0.7

Michigan

0.7

MS

1.8

NH: 0.8

NJ: 5.7

NY

1.6

N. Carolina

0.7

Ohio

0.7

RI: 1.5

S. Carolina

0.6

Tennessee

0.6

VT: 1.8

Virginia

1.3

WV

1.3

Puerto

Rico

1.4

Northeast 

Southeast 

Central 

Pennsylvania

0.8

South

Dakota

0.5

Arkansas

0.9

LA

0.4

New Mexico

0.7

Oklahoma

0.6

Texas

1.2

Greater than 1.5% 

Between .75% and 1.5% 

Less than .75% * Noncurrent loan rates represent the percentage of loans that

are past due 90 days or more or in nonaccrual status.

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Third Quarter 1997 
TABLE I-B. Selected Indicators, FDIC-Insured Savings Institutions*

 1997** 1996** 1996 1995 1994 1993 1992 

Return on assets (%).............................................. 0.90 0.66 0.70 0.77 0.66 0.70 0.65 

Return on equity (%)............................................... 10.56 7.84 8.40 9.40 8.28 9.24 9.48 

Core capital (leverage) ratio (%)............................. 7.91 7.67 7.76 7.80 7.65 7.45 6.77 

Noncurrent assets plus

 other real estate owned to assets (%).................. 1.02 1.14 1.09 1.20 1.38 2.10 3.07 

Net charge-offs to loans (%)................................... 0.29 0.31 0.32 0.34 0.51 0.65 0.59 

Asset growth rate (%).............................................. -1.29 1.03 0.25 1.70 0.77 -2.85 -7.44 

Net interest margin (%)........................................... 3.24 3.21 3.22 3.09 3.34 3.48 3.40 

Net operating income growth (%)........................... 30.26 -21.33 -13.98 13.81 22.24 21.21 574.61 

Number of institutions............................................. 1,812 1,962 1,924 2,030 2,152 2,262 2,390 

Percentage of unprofitable institutions.................... 3.75 18.65 11.95 5.86 6.97 5.88 7.57 

Number of problem institutions............................... 27 36 35 49 71 146 276 

Assets of problem institutions (in billions)............... $2 $8 $7 $14 $39 $92 $183 

Number of failed/assisted institutions..................... 0 1 1 2 4 8 81 

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

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

(dollar figures in millions) 

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

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

CONDITION DATA 

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

 Loans secured by real estate............................................ 

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

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

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

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

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

 Loans to individuals........................................................... 

 Other loans & leases......................................................... 

 Less: Unearned income & contra accounts***.................. 

 Total loans & leases............................................................ 

 Less: Reserve for losses..................................................... 

 Net loans & leases................................................................ 

 Securities............................................................................... 

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

 Goodwill and other intangibles.............................................. 

 All other assets...................................................................... 

Total liabilities and capital....................................................... 

 Deposits................................................................................ 

 Other borrowed funds............................................................ 

 Subordinated debt................................................................. 

 All other liabilities................................................................... 

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

Loans and leases 30-89 days past due.................................. 

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

Restructured loans and leases................................................ 

Direct and indirect investments in real estate......................... 

Mortgage-backed securities.................................................... 

Earning assets......................................................................... 

FHLB Advances (TFR filers only)............................................ 

Unused loan commitments...................................................... 

Preliminary 

3rd Quarter 

1997 

2nd Quarter 3rd Quarter 

1997 1996 

%Change 

96:3-97:3 

1,812 

245,040 

$1,021,885 

631,512 

505,753 

58,480 

47,702 

19,576 

16,034 

48,934 

3,021 

227 

699,274 

6,939 

692,334 

247,413 

2,205 

10,381 

69,552 

1,021,885 

706,430 

210,482 

2,931 

13,835 

88,207 

7,869 

8,218 

3,573 

580 

182,244 

957,552 

106,760 

110,520 

1,852 1,962 

247,944 255,226 

$1,028,719 $1,035,271 

629,367 637,080 

503,141 501,489 

58,236 59,451 

48,911 50,431 

19,078 25,710 

15,300 14,512 

46,781 45,146 

2,418 2,214 

238 11,137 

693,628 687,815 

6,849 7,353 

686,779 680,462 

258,151 272,304 

2,242 2,608 

10,433 8,122 

71,115 71,773 

1,028,719 1,035,271 

718,752 730,145 

207,383 203,728 

2,474 2,443 

12,332 13,933 

87,778 85,021 

7,918 8,969 

8,235 9,158 

3,998 4,869 

578 632 

190,659 202,033 

964,423 971,412 

105,665 98,805 

108,401 97,281 

-7.6 

-4.0 

-1.3

-0.9

0.9

-1.6

-5.4

-23.9

10.5

8.4

36.4

N/M

1.7

-5.6

1.7

-9.1

-15.5

27.8

-3.1 

-1.3

-3.2

3.3

20.0

-0.7

3.7 

-12.3 

-10.3 

-26.6 

-8.3 

-9.8 

-1.4 

8.1 

13.6 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary 

First Three 

Qtrs 1997 

First Three 

Qtrs 1996 

Preliminary 

3rd Quarter 3rd Quarter 

%Change 1997 1996 

%Change 

96:3-97:3 

$53,981 

31,425 

22,556 

1,805 

5,409 

16,541 

718 

3,696 

(3) 

6,639 

1,441 

3,336 

6,116 

$54,787 

31,975 

22,812 

1,709 

5,673 

20,194 

688 

2,057 

(247) 

4,965 

1,540 

4,165 

4,695 

-1.5 $18,551 $18,608 

-1.7 10,954 10,865 

-1.1 7,597 7,742 

5.6 637 642 

-4.7 1,905 1,844 

-18.1 5,883 9,115 

4.4 162 164 

79.7 1,138 (222) 

N/M (3) (249) 

33.7 2,004 (34) 

-6.4 508 514 

-19.9 1,073 1,529 

30.3 1,883 84 

-0.3 

0.8

-1.9 

-0.8 

3.3 

-35.5 

-1.2 

N/M 

N/M

N/M 

-1.1 

-29.8

2148.7 

*Data between 1992 and 1995 do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. N/M - Not Meaningful 

***Prior to 1997, includes contra accounts such as loans in process and unamortized yield adjustments for TFR filers.

 Beginning March 31, 1997, includes only unearned income reported by Call Report filers. 
 

 

 

 

 

TABLE III-B. First Three Quarters 1997, FDIC-Insured Savings Institutions 

FIRST THREE QUARTERS Preliminary 

 (The way it is . . . ) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,812 788 868 121 35 693 263 465 136 123 132 

Total assets (in billions).............................. $1,021.9 $41.0 $255.5 $246.8 $478.7 $343.4 $65.1 $172.5 $34.5 $64.7 $341.7 

Total deposits (in billions)........................... 706.4 33.6 200.2 170.2 302.4 258.9 49.2 123.7 25.1 39.8 209.8 

Net income (in millions)............................... 6,638.5 241.3 1,804.2 1,833.6 2,759.5 2,499.2 435.3 1,214.9 255.2 414.3 1,819.6 

% of unprofitable institutions....................... 3.8 6.5 1.4 3.3 2.9 2.3 6.5 2.6 2.2 8.1 7.6 

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

Performance Ratios (annualized, %) 

89.9 88.1 92.1 88.4 82.9 85.4 89.0 95.5 96.3 89.4 89.4 

Yield on earning assets............................... 7.76 7.84 7.87 8.01 7.57 7.73 8.18 7.66 7.80 8.10 7.70 

Cost of funding earning assets................... 4.52 4.27 4.35 4.53 4.62 4.18 4.53 4.59 4.77 4.87 4.73 

Net interest margin...................................... 3.24 3.57 3.52 3.48 2.94 3.55 3.66 3.07 3.03 3.23 2.97 

Noninterest income to earning assets........ 0.78 0.83 0.62 1.04 0.73 0.63 1.49 0.93 0.71 1.10 0.66 

Noninterest expense to earning assets...... 2.38 3.09 2.52 2.63 2.11 2.38 3.44 2.36 2.10 2.51 2.19 

Efficiency ratio............................................. 57.32 69.81 60.07 56.67 54.72 55.07 65.64 56.28 55.06 56.86 58.65 

Net operating income to assets.................. 0.82 0.72 0.90 0.92 0.75 0.93 0.73 0.85 0.92 0.99 0.69 

Return on assets......................................... 0.90 0.80 0.97 1.02 0.80 1.00 0.92 0.97 1.02 0.88 0.74 

Return on equity.......................................... 10.56 6.89 9.56 11.96 10.98 10.75 9.50 10.77 11.02 10.72 10.38 

Net charge-offs to loans and leases........... 0.29 0.10 0.14 0.42 0.32 0.28 0.46 0.23 0.06 0.38 0.30 

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

Condition Ratios (%) 

Loss allowance to:

125.23 136.92 151.56 129.79 116.00 132.36 120.39 118.55 279.53 152.75 115.00 

 Loans and leases...................................... 0.99 0.74 0.89 1.18 0.98 1.11 1.04 0.75 0.71 0.96 1.04

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

Noncurrent assets plus

84.44 68.45 87.81 65.25 100.79 64.44 114.83 100.50 110.41 91.82 99.09 

 other real estate owned to assets............. 1.02 0.89 0.88 1.44 0.89 1.24 0.92 0.65 0.61 1.03 1.04 

Noncurrent RE loans to RE loans............... 1.19 1.04 1.00 1.91 0.99 1.80 0.81 0.69 0.58 1.15 1.07 

Equity capital ratio....................................... 8.63 11.93 10.31 8.69 7.43 9.47 9.92 9.28 9.27 8.41 7.19 

Core capital (leverage) ratio........................ 7.91 11.60 9.80 8.05 6.51 8.68 9.35 8.29 8.90 7.97 6.57 

Gross real estate assets to gross assets.... 79.35 71.70 74.55 75.94 84.32 74.04 72.15 79.41 77.06 74.27 87.21 

Gross 1-4 family mortgages to gr. assets... 49.15 52.33 48.04 39.90 54.24 43.06 46.06 54.53 54.03 36.90 54.96 

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

PRIOR FIRST THREE QUARTERS*

 (The way it was . . . ) 

98.00 83.08 86.03 91.79 111.09 81.13 90.39 99.49 98.82 103.70 118.56 

Number of institutions.......................1996 1,962 862 939 124 37 736 294 504 149 130 149 

.......................................1994 2,181 1,011 1,003 137 30 799 345 552 160 142 183 

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

Total assets (in billions).....................1996 $1,035.3 $44.9 $276.4 $253.8 $460.1 $348.9 $68.0 $174.4 $52.1 $77.9 $314.0 

.......................................1994 1,006.2 51.3 290.8 297.0 367.1 335.0 82.4 153.2 52.4 56.9 326.3 

.......................................1992 1,048.5 56.5 326.6 331.0 334.4 357.1 111.4 151.2 49.2 61.3 318.3 

Return on assets (%)........................1996 0.66 0.31 0.57 0.73 0.70 0.79 0.45 0.57 0.53 1.76 0.34 

.......................................1994 0.67 0.82 0.84 0.80 0.40 0.92 0.89 0.77 0.57 0.96 0.26 

.......................................1992 

Net charge-offs to loans & leases (%) 

0.64 0.85 0.79 0.56 0.53 0.49 0.78 0.88 0.98 1.52 0.42 

.......................................1996 0.31 0.10 0.17 0.31 0.42 0.30 0.35 0.14 0.14 0.32 0.44 

.......................................1994 0.53 0.11 0.21 0.50 0.85 0.49 0.18 0.11 0.09 0.31 0.89 

.......................................1992 

Noncurrent assets plus 

0.56 0.22 0.36 0.64 0.73 0.86 0.38 0.20 0.19 0.28 0.56 

OREO to assets (%)**...........1996 1.14 0.99 0.95 1.34 1.16 1.30 1.29 0.64 0.66 1.08 1.31 

.......................................1994 1.57 1.17 1.35 1.67 1.73 2.06 1.10 0.56 0.62 1.44 1.85 

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

Equity capital ratio (%)......................1996 8.21 10.98 9.75 8.13 7.07 8.96 9.26 8.70 8.33 7.95 6.93 

.......................................1994 8.04 9.82 8.97 8.12 7.00 8.46 8.47 8.71 7.86 7.43 7.33 

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

*Data between 1992 and 1995 do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 

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

 reserves, beginning with June 1996, to make the ratio more closely comparable to prior periods. 
 

 

 

TABLE IV-B. Third Quarter 1997, FDIC-Insured Savings Institutions 

THIRD QUARTER Preliminary 

 (The way it is . . . ) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,812 788 868 121 35 693 263 465 136 123 132 

Total assets (in billions).............................. $1,021.9 $41.0 $255.5 $246.8 $478.7 $343.4 $65.1 $172.5 $34.5 $64.7 $341.7 

Total deposits (in billions)........................... 706.4 33.6 200.2 170.2 302.4 258.9 49.2 123.7 25.1 39.8 209.8 

Net income (in millions)............................... 2,004.2 86.3 607.0 523.6 787.4 859.0 151.6 383.5 88.4 67.1 454.6 

% of unprofitable institutions....................... 4.7 7.2 2.4 4.1 5.7 2.7 9.1 3.2 2.2 10.6 8.3 

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

Performance Ratios (annualized, %) 

90.0 88.7 91.5 87.6 88.6 84.0 89.7 96.1 96.3 91.1 92.4 

Yield on earning assets............................... 7.80 7.89 7.93 7.99 7.63 7.74 8.07 7.88 7.85 8.19 7.69 

Cost of funding earning assets................... 4.61 4.33 4.42 4.60 4.74 4.26 4.59 4.77 4.82 4.96 4.79 

Net interest margin...................................... 3.20 3.57 3.51 3.39 2.90 3.48 3.48 3.11 3.02 3.23 2.90 

Noninterest income to earning assets........ 0.80 1.05 0.64 1.15 0.69 0.75 1.72 0.99 0.73 1.16 0.53 

Noninterest expense to earning assets...... 2.47 3.19 2.53 2.73 2.26 2.37 3.50 2.53 2.15 2.66 2.36 

Efficiency ratio............................................. 60.06 68.85 60.31 58.31 60.07 54.22 66.26 58.82 57.08 59.26 66.88 

Net operating income to assets.................. 0.74 0.77 0.90 0.84 0.61 0.95 0.71 0.80 0.91 0.83 0.47 

Return on assets......................................... 0.79 0.85 0.96 0.86 0.66 1.01 0.94 0.90 1.04 0.41 0.54 

Return on equity.......................................... 9.20 7.19 9.36 9.90 8.93 10.73 9.57 9.66 11.20 4.97 7.47 

Net charge-offs to loans and leases........... 0.29 0.10 0.17 0.32 0.36 0.21 0.42 0.26 0.09 0.35 0.37 

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

PRIOR THIRD QUARTERS*

 (The way it was . . . ) 

125.32 162.12 127.16 191.51 96.21 191.20 145.51 107.81 168.19 206.49 83.06 

Return on assets (%)........................1996 -0.01 -0.51 0.00 0.29 -0.14 0.49 -0.40 -0.26 -0.21 0.32 -0.41 

.......................................1994 0.76 0.79 0.84 0.91 0.56 1.01 0.87 0.88 0.87 0.71 0.40 

.......................................1992 

Net charge-offs to loans & leases (%) 

0.60 0.93 0.86 0.33 0.56 0.43 0.78 0.91 1.03 1.78 0.29 

.......................................1996 0.30 0.09 0.16 0.33 0.40 0.28 0.36 0.16 0.13 0.31 0.41 

.......................................1994 0.51 0.10 0.22 0.46 0.82 0.56 0.11 0.12 0.10 0.40 0.79 

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

*Data between 1992 and 1994 does not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 
TABLE V-B. Loan Performance, FDIC-Insured Savings Institutions 

September 30, 1997 All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 1.06 1.84 1.18 1.00 0.95 1.12 1.18 0.98 1.31 1.47 0.94

 Construction, development and land.................... 1.52 2.00 1.66 1.40 1.31 1.21 1.59 1.90 2.58 1.47 1.10

 Commercial real estate......................................... 0.80 1.60 0.94 0.85 0.48 0.91 0.87 0.84 1.15 0.82 0.53

 Multifamily residential real estate.......................... 0.41 1.17 0.60 0.38 0.34 0.58 0.85 0.42 1.07 0.39 0.31

 Home equity loans................................................ 0.69 0.73 0.97 0.71 0.45 0.93 0.34 0.66 0.56 0.26 0.41

 Other 1-4 Family residential.................................. 1.15 1.92 1.24 1.13 1.06 1.21 1.22 1.01 1.29 1.66 1.09 

Commercial and industrial loans............................. 1.26 2.09 1.61 1.13 0.89 1.15 1.75 1.68 2.15 0.92 1.07 

Loans to individuals................................................. 2.03 2.38 1.89 2.35 1.83 2.03 2.96 2.34 1.89 1.24 1.87

 Credit card loans................................................... 2.21 0.91 3.60 3.02 1.67 1.97 4.12 2.89 2.51 0.83 3.08

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

Percent of Loans Noncurrent* 

1.98 2.43 1.72 2.18 1.92 2.04 2.39 2.17 1.87 1.62 1.70 

All real estate loans................................................. 1.19 1.04 1.00 1.91 0.99 1.80 0.81 0.69 0.58 1.15 1.07

 Construction, development and land.................... 1.14 1.66 1.35 1.09 0.77 1.71 1.05 1.39 0.96 0.43 1.01

 Commercial real estate......................................... 1.89 1.41 1.35 2.93 1.53 2.61 0.75 0.87 0.88 1.97 1.60

 Multifamily residential real estate.......................... 1.06 1.25 1.03 2.05 0.52 2.20 1.23 0.72 1.02 3.46 0.54

 Home equity loans................................................ 0.34 0.27 0.42 0.36 0.27 0.46 0.15 0.28 0.24 0.15 0.29

 Other 1-4 Family residential.................................. 1.17 0.98 0.96 1.84 1.04 1.72 0.81 0.66 0.52 0.95 1.15 

Commercial and industrial loans............................. 1.33 1.86 1.57 1.38 0.90 1.56 1.39 1.22 1.87 1.27 0.78 

Loans to individuals................................................. 0.95 1.21 0.96 1.28 0.67 0.89 1.54 1.40 0.97 0.62 0.47

 Credit card loans................................................... 1.56 0.64 2.67 2.25 1.12 1.68 2.73 2.22 0.93 0.60 1.34

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

Percent of Loans Charged-off

 (net, annualized) 

0.76 1.23 0.79 1.02 0.42 0.72 0.95 1.14 0.97 0.64 0.34 

All real estate loans................................................. 0.15 0.06 0.07 0.14 0.22 0.15 0.04 0.03 -0.02 0.09 0.26

 Construction, development and land.................... 0.06 0.22 0.10 0.04 0.00 0.13 -0.01 0.07 0.12 0.03 0.07

 Commercial real estate......................................... 0.13 0.11 0.12 0.06 0.20 0.12 0.11 0.04 0.05 0.14 0.19

 Multifamily residential real estate.......................... 0.20 0.14 0.14 0.27 0.19 0.11 0.04 0.05 0.20 0.06 0.29

 Home equity loans................................................ 0.19 0.08 0.11 0.25 0.23 0.16 0.09 0.09 0.28 0.19 0.43

 Other 1-4 Family residential.................................. 0.15 0.04 0.05 0.12 0.23 0.16 0.03 0.03 -0.06 0.09 0.26 

Commercial and industrial loans............................. 0.32 0.67 0.48 0.35 0.10 0.32 0.76 0.35 0.49 0.47 0.04 

Loans to individuals................................................. 2.06 0.53 1.10 2.95 2.01 1.83 3.41 2.69 0.78 1.59 1.62

 Credit card loans................................................... 5.38 1.46 6.26 8.92 4.01 4.76 7.93 10.87 4.40 2.01 5.17

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

Loans Outstanding (in billions) 

0.99 0.50 0.53 1.68 0.68 1.15 1.04 0.60 0.65 1.17 1.11 

All real estate loans................................................. $631.5 $25.7 $158.3 $135.1 $312.5 $187.4 $38.3 $111.8 $22.1 $32.5 $239.4

 Construction, development and land.................... 19.6 1.2 8.2 4.4 5.8 4.0 3.4 4.3 1.0 3.4 3.5

 Commercial real estate......................................... 47.6 2.1 16.5 14.7 14.3 21.2 3.7 5.8 1.6 3.0 12.3

 Multifamily residential real estate.......................... 58.5 0.8 10.0 16.7 30.9 13.3 1.0 7.2 0.8 2.0 34.3

 Home equity loans................................................ 17.5 0.6 5.2 4.9 6.8 7.1 1.4 4.6 0.5 0.3 3.5

 Other 1-4 Family residential.................................. 488.3 21.0 118.3 94.3 254.7 141.8 28.8 90.0 18.3 23.7 185.7 

Commercial and industrial loans............................. 16.0 0.6 4.3 5.9 5.2 7.6 1.2 2.0 0.5 1.3 3.3 

Loans to individuals................................................. 48.9 1.8 10.9 15.6 20.6 15.9 5.3 9.6 2.2 7.8 8.2

 Credit card loans................................................... 11.6 0.1 1.0 3.3 7.3 2.8 1.7 2.3 0.1 3.7 1.0

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

Memoranda: 

Other Real Estate Owned (in millions)** 

37.3 1.8 9.9 12.3 13.3 13.1 3.5 7.3 2.2 4.1 7.1 

All other real estate owned..................................... $2,205.4 $60.8 $484.7 $692.2 $967.7 $604.6 $189.5 $196.5 $51.8 $228.8 $934.2

 Construction, development and land.................... 270.2 9.1 83.8 49.1 128.3 65.6 122.8 12.2 10.7 12.4 46.6

 Commercial real estate......................................... 399.2 11.5 107.5 195.7 84.5 172.7 25.0 55.9 16.2 49.7 79.7

 Multifamily residential real estate.......................... 363.4 3.3 43.5 193.0 123.6 70.1 4.9 13.6 2.2 105.9 166.6

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

Troubled Real Estate Asset Rates***

 (% of total RE assets) 

1,224.7 38.1 261.7 267.5 657.3 309.1 52.4 118.0 25.2 64.0 656.0 

All real estate loans................................................. 1.54 1.28 1.31 2.41 1.29 2.12 1.30 0.86 0.81 1.84 1.45

 Construction, development and land.................... 2.48 2.40 2.35 2.18 2.92 3.29 4.47 1.67 2.04 0.80 2.30

 Commercial real estate......................................... 2.72 1.96 1.99 4.24 2.11 3.41 1.41 1.82 1.87 3.64 2.23

 Multifamily residential real estate.......................... 1.67 1.65 1.46 3.17 0.92 2.72 1.74 0.91 1.29 8.33 1.02

 1-4 Family residential............................................ 1.38 1.14 1.14 2.03 1.27 1.86 0.95 0.77 0.65 1.20 1.47 

*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. 

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

***Noncurrent real estate loans plus other real estate owned as a percent of total real estate loans plus OREO. 
($ Millions) 

ALL FDIC-INSURED INSTITUTIONS 

• BIF Reserve Ratio Rises To 1.38 Percent As Fund Nears $28 Billion 

• With A Decline In SAIF-Insured Deposits, SAIF Reserve Ratio Increases To 1.35 Percent 

• No Insured Institutions Fail, Marking The Fourth Consecutive Quarter 

The 11,027 depository institutions insured by the FDIC 

grew at a slower pace during the third quarter than in the 

second quarter of 1997. Total assets increased $91 billion (1.6 percent) during the third quarter, down from 

growth of $136 billion (2.3 percent) in the second quarter. Asset growth occurred primarily at members of the 

Bank Insurance Fund (BIF), whose assets increased 

$92 billion, while the total assets of members of the 

Savings Association Insurance Fund (SAIF) declined $1 

billion. These figures reflect $15 billion of former SAIFmember assets that were merged into BIF members during the third quarter. 

Since year-end 1992, insured institutions’ total loans 

have increased 34 percent, but this growth was funded 

increasingly by nondeposit liabilities and, to a lesser extent, equity. The ratio of deposits to liabilities declined 

steadily from 84 percent at the end of 1992 to 74.5 percent on September 30. The ratio of insured deposits to 

liabilities fell at an even faster rate during this period, 

from 63.0 percent to 50.3 percent. 

The BIF grew to $27.967 billion (unaudited) as of September 30, an increase of $578 million (2.1 percent) 

since June 30. Most of the increase was attributable to 

investment income, but with insurance losses expected 

to remain low for the near-term, a reduction in the reserve for anticipated failures also contributed to fund 

growth. BIF-insured deposits increased just $5.3 billion 

(0.3 percent) during the third quarter, and, as a result, 

the ratio of the fund balance to insured deposits rose to 

1.38 percent from 1.35 percent on June 30. The fund exceeds the statutorily mandated reserve ratio of 1.25 percent by $2.6 billion. 

The SAIF reserve ratio also increased by 3 basis points 

during the third quarter, rising to 1.35 percent from 1.32 

Insurance Fund Reserve Ratios* 

Percent of Insured Deposits 

1.38 1.34 1.34 1.35 1.35 1.31 1.32 Target Ratio 1.30 1.30 

1.25 1.15 

0.69 

0.47 

0.28 

0.17 

0.01 0.04 

-0.01 

BIF 

SAIF 

-0.36 

12/91 12/92 12/93 12/94 12/95 12/96 3 97 6 97 9 97 

* nsurance fund balance as a percent of total insured deposits. 

percent on June 30. The fund balance grew by a modest $119 million (1.3 percent) during the quarter, reaching $9.253 billion (unaudited) on September 30. SAIFinsured deposits, however, fell by $6 billion (0.9 percent), resulting in the increase in the reserve ratio. The 

SAIF exceeds the designated reserve ratio of 1.25 percent by $700 million. 

No insured institutions failed during the third quarter, 

extending to more than one year the interval since the 

most recent failures. 

Oakars and Sassers. Oakar deposits are those acquired by a member of one insurance fund from a member of the other fund. These deposits remain insured 

by the seller's fund. Sasser institutions are former savings and loan associations that convert to a commercial 

or savings bank charter. By remaining members of the 

SAIF, they avoid costly exit and entrance fees. On 

September 30, 783 BIF members held $236 billion in 

SAIF-assessable deposits, or 32.9 percent of the SAIF 

assessment base. On this date, there were 341 Sasser 

institutions with $70 billion in SAIF-assessable deposits, or 9.8 percent of the SAIF assessment base. Their 

numbers included 241 savings banks and 100 commercial banks. Although these commercial banks represented approximately 30 percent of all Sassers, most 

recent Sasser conversions have opted for commercial 

bank charters. Of the nine Sasser conversions in the 

third quarter, seven became commercial banks. 

FICO bonds. All insured institutions are required to 

pay quarterly amounts to the Financing Corporation 

(FICO) to cover the FICO's annual bond interest of 

$793 million. For the first half of 1998, annualized FICO 

assessment rates are expected to be 6.28 basis points 

for SAIF-assessable deposits and 1.26 basis points for 

BIF-assessable deposits. 

Fund Balance and Insured Deposits* 

BIF Fund BIF-Insured SAIF Fund SAIF-Insured 

Balance Deposits Balance Deposits 

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

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

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

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

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

12/96 26,854 2,008,234 8,888 682,284 

3/97 27,042 2,024,439 9,010 688,229 

6/97 27,389 2,022,745 9,134 690,220 

9/97 27,967 2,028,024 9,253 684,262 

* Insured deposit amounts are estimates. 1997 fund balances are unaudited .

FDIC Quarterly Banking Profile 

Third Quarter 1997 15 All FDIC-Insured Institutions 

0 
 

 

 

 

All Other Institutions

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

 September 30, 1997* 

(dollar figures in millions) Number of 

Institutions 

Total 

Assets 

Domestic

Deposits** 

 Estimated Insured Deposits 

BIF SAIF Total 

Private-Sector Commercial and Savings Institution

 FDIC-Insured Commercial Banks............................. 9,215 4,869,450 2,797,879 1,847,823 203,743 2,051,566

 BIF-member........................................................... 9,115 4,814,904 2,757,998 1,835,924 182,328 2,018,253

 SAIF-member........................................................ 100 54,547 39,881 11,899 21,415 33,313

 FDIC-Insured Savings Institutions............................ 1,812 1,021,885 706,430 178,642 480,519 659,162

 OTS-Supervised Savings Institutions.................... 1,237 763,818 510,520 52,768 423,979 476,747

 BIF-member........................................................ 32 126,951 83,605 40,048 38,713 78,761

 SAIF-member*................................................... 1,205 636,868 426,914 12,721 385,266 397,986

 FDIC-Supervised State Savings Banks.................. 575 258,067 195,910 125,874 56,541 182,414

 BIF-member........................................................ 334 196,148 149,859 124,785 13,990 138,775

 SAIF-member..................................................... 241 61,919 46,051 1,089 42,551 43,639 

Total Private-Sector Commercial and

 Savings Institutions............................................... 11,027 5,891,335 3,504,308 2,026,465 684,262 2,710,728

 BIF-member............................................................... 9,481 5,138,003 2,991,463 2,000,757 235,032 2,235,789

 SAIF-member............................................................ 1,546 753,333 512,846 25,708 449,231 474,939 

Other FDIC-Insured Institutions

 U.S. Branches of Foreign Banks ............................... 30 7,769 3,051 1,559 0 1,559 

Total FDIC-Insured Institutions................................ 11,057 5,899,105 3,507,359 2,028,024 684,262 2,712,287 

*Excludes one self-liquidating savings institution with less than $1 million in SAIF-insured deposits. 

**Excludes $507 billion in foreign office deposits, which are uninsured. 

SAIF Assessment Base 

December 31, 1989 - September 30, 1997 

$ Billions 1,000 

0 

Sasser Institutions 

Oakar Deposits (BIF-members) 

RTC Conservatorships 

12/89 12/90 12/91 12/92 12/93 12/94 12/95 12/96 03/97 06/97 09/97 

($ Billions) 

Sasser Institutions 0.0 2.8 11.9 28.4 42.8 52.0 56.2 57.2 58.4 64.0 70.0 

Oakar Deposits (BIF-members) 2.1 34.0 69.8 80.5 139.9 181.9 220.1 216.8 223.7 231.7 235.9

RTC Conservatorships 89.0 67.3 36.9 31.2 17.7 1.2 0.0 0.0 0.0 0.0 0.0

All Other Institutions 851.6 766.0 693.2 615.2 520.3 479.2 459.0 434.0 432.9 422.0 408.7 

Total 942.8 870.0 811.7 755.3 720.7 714.4 735.3 707.9 715.0 717.7 714.6 
 

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

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

Number of institutions reporting...................................... 11,027 11,548 11,452 11,970 12,603 13,220 

Total assets..................................................................... $5,891,335 $5,493,750 $5,606,582 $5,338,421 $5,019,085 $4,707,056 

Total deposits.................................................................. 4,011,357 3,826,223 3,925,066 3,769,481 3,611,619 3,528,486 

Number of problem institutions....................................... 98 125 117 193 318 572 

Assets of problem institutions (in billions)....................... $7 $15 $12 $31 $73 $334 

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

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

**As of September 30. 

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

(dollar figures in millions) 

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

Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter % Change 

1997 1997 1996 96:3-97:3 

11,027 11,160 11,548 -4.5 

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

CONDITION DATA 

1,769,036 1,761,819 1,734,794 2.0 

Total assets............................................................................. $5,891,335 $5,800,017 $5,493,750 7.2

 Loans secured by real estate............................................ 1,858,334 1,823,995 1,752,769 6.0

 1-4 Family residential.................................................... 1,213,929 1,193,557 1,141,691 6.3

 Home equity loans....................................................... 113,526 109,472 100,369 13.1

 Multifamily residential property...................................... 98,388 97,957 97,307 1.1

 Commercial real estate................................................. 383,677 376,013 362,014 6.0

 Construction, development and land............................. 105,684 101,547 99,880 5.8

 Other real estate loans.................................................. 56,657 54,921 51,877 9.2

 Commercial & industrial loans........................................... 781,245 770,515 713,245 9.5

 Loans to individuals........................................................... 603,525 604,521 594,131 1.6

 Credit cards & related plans............................................ 232,034 236,634 227,726 1.9

 Other loans & leases......................................................... 364,765 366,550 382,411 -4.6

 Less: Unearned income & contra accounts...................... 4,977 5,382 16,719 -70.2

 Total loans & leases............................................................ 3,602,893 3,560,198 3,425,837 5.2

 Less: Reserve for losses..................................................... 61,857 61,386 61,040 1.3

 Net loans & leases................................................................ 3,541,036 3,498,812 3,364,797 5.2

 Securities .............................................................................. 1,082,933 1,078,613 1,071,779 1.0

 Other real estate owned........................................................ 6,342 6,622 7,643 -17.0

 Goodwill and other intangibles.............................................. 69,252 67,172 51,665 34.0

 All other assets...................................................................... 1,191,772 1,148,798 997,867 19.4 

Total liabilities and capital....................................................... 5,891,335 5,800,017 5,493,750 7.2

 Deposits................................................................................ 4,011,357 3,998,476 3,826,223 4.8

 Other borrowed funds............................................................ 1,032,734 995,946 927,034 11.4

 Subordinated debt................................................................. 58,027 56,759 50,945 13.9

 All other liabilities................................................................... 285,586 258,228 234,130 22.0

 Equity capital......................................................................... 503,632 490,609 455,418 10.6 

Loans and leases 30-89 days past due.................................. 43,257 43,073 43,724 -1.1 

Noncurrent loans and leases.................................................. 36,941 36,839 39,557 -6.6 

Restructured loans and leases................................................ 6,297 7,393 8,876 -29.1 

Direct and indirect investments in real estate......................... 1,234 1,213 1,195 3.3 

Mortgage-backed securities.................................................... 542,491 536,377 529,541 2.4 

Earning assets......................................................................... 5,172,062 5,093,825 4,828,231 7.1 

Unused loan commitments...................................................... 

Including IBA's:***

3,076,809 2,943,147 2,544,662 20.9 

 Estimated BIF-insured deposits........................................... 2,028,024 2,022,745 1,981,623 2.3

 Assessment base.............................................................. 2,697,895 2,678,931 2,565,757 5.2

 BIF balance (unaudited figures)........................................ 27,967 27,389 26,106 7.1

 BIF reserve ratio (%)......................................................... 1.38 1.35 1.32 4.7

 Estimated SAIF-insured deposits......................................... 684,262 690,220 687,745 -0.5

 Assessment base.............................................................. 714,623 717,659 711,768 0.4

 SAIF balance (unaudited figures)...................................... 9,253 9,134 8,722 6.1

 SAIF reserve ratio (%)....................................................... 1.35 1.32 1.27 6.6

 Estimated FDIC-insured deposits, BIF and SAIF................. 2,712,286 2,712,965 2,669,368 1.6 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

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

Qtrs 1997 Qtrs 1996 %Change 1997 1996 96:3-97:3 

$304,896 $286,463 6.4 $104,574 $97,488 7.3 

152,534 143,080 6.6 52,785 48,311 9.3

152,362 143,384 6.3 51,789 49,177 5.3 

16,074 13,470 19.3 5,596 4,594 21.8 

82,690 74,414 11.1 29,272 24,791 18.1 

142,097 139,146 2.1 49,660 49,289 0.8 

1,693 1,409 20.1 419 333 25.6 

28,049 22,853 22.7 9,451 7,051 34.0 

41 (158) N/M 7 (250) N/M

50,566 43,579 16.0 16,780 13,118 27.9 

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

***Reserve ratios reflect the insurance fund balance as a percentage of estimated insured deposits. N/M-Not meaningful 
TABLE I-D. Selected Indicators, BIF-Member Depository Institutions* 

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

Number of institutions reporting...................................... 9,481 9,884 9,822 10,242 10,759 11,291 

Total assets..................................................................... 5,138,003 4,733,667 4,855,811 4,576,263 4,246,786 3,949,695 

Total deposits.................................................................. 3,498,511 3,301,383 3,402,648 3,224,307 3,061,457 2,951,979 

Number of problem institutions....................................... 73 93 86 151 264 472 

Assets of problem institutions (in billions)....................... $4 $8 $7 $20 $42 $269 

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

Assets of failed/assisted institutions (in billions)............. $0.00 $0.19 $0.19 $0.76 $1.43 $3.54 

**As of September 30. 

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

(dollar figures in millions) 

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

Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter % Change 

1997 1997 1996 96:3-97:3 

9,481 9,583 9,884 -4.1

 Commercial banks................................................................. 9,115 9,212 9,502 -4.1

 Savings institutions................................................................ 366 371 382 -4.2 

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

CONDITION DATA 

1,577,668 1,569,319 1,538,480 2.5 

Total assets............................................................................. $5,138,003 $5,045,508 $4,733,667 8.5

 Loans secured by real estate, total....................................... 1,394,885 1,361,637 1,280,130 9.0

 1-4 Family residential.......................................................... 838,354 819,697 766,513 9.4

 Multifamily residential property............................................ 62,299 61,452 58,675 6.2

 Commercial real estate....................................................... 349,536 341,165 326,759 7.0

 Construction, development and land................................... 88,275 84,624 76,484 15.4

 Commercial & industrial loans............................................... 768,089 758,054 702,110 9.4

 Reserve for losses............................................................... 56,945 56,590 55,885 1.9

 Total deposits........................................................................ 3,498,511 3,478,421 3,301,383 6.0

 Domestic deposits................................................................. 2,991,463 2,974,515 2,850,398 4.9

 Estimated insured deposits................................................... 2,235,789 2,227,130 2,176,015 2.7

 BIF-insured deposits (estimated)........................................ 2,000,757 1,995,998 1,958,861 2.1

 SAIF-insured deposits (estimated)...................................... 235,032 231,132 217,154 8.2

 Noncurrent loans and leases................................................ 30,777 30,817 33,111 -7.0

 Other real estate owned........................................................ 4,582 4,855 5,717 -19.9

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

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions:

439,505 426,987 393,878 11.6 

 Well capitalized..................................................................... 9,284 9,399 9,723 -4.5

 Adequately capitalized.......................................................... 184 170 149 23.5

 Undercapitalized.................................................................... 7 6 8 -12.5

 Significantly undercapitalized................................................ 3 6 3 0.0

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

Total assets:

3 2 1 200.0 

 Well capitalized..................................................................... $5,103,420 $5,014,443 $4,711,117 8.3

 Adequately capitalized.......................................................... 33,510 30,512 21,580 55.3

 Undercapitalized.................................................................... 837 179 594 40.8

 Significantly undercapitalized ............................................... 151 350 339 -55.3

 Critically undercapitalized...................................................... 84 24 37 125.9 

INCOME DATA 

Preliminary Preliminary 

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

Qtrs 1997 Qtrs 1996 %Change 1997 1996 96:3-97:3 

Net interest income............................................... $135,889 $126,728 7.2 $46,250 $43,546 6.2 

Provision for loan losses....................................... 14,817 12,177 21.7 5,146 4,116 25.0 

Net income............................................................ 45,668 40,182 13.7 15,391 13,567 13.4 

Net charge-offs...................................................... 13,516 11,491 17.6 4,837 3,915 23.5 

Number of institutions reporting net losses........... 375 362 3.6 405 414 -2.2 

*Excludes insured branches of foreign banks. 
TABLE I-E. Selected Indicators, SAIF-Member Depository Institutions* 

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

Number of institutions reporting...................................... 1,546 1,664 1,630 1,728 1,844 1,929 

Total assets..................................................................... 753,333 760,083 750,770 762,157 772,299 757,362 

Total deposits.................................................................. 512,846 524,840 522,419 545,174 550,162 576,507 

Number of problem institutions....................................... 25 32 31 42 54 100 

Assets of problem institutions (in billions)....................... $3 $7 $6 $11 $31 $65 

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

Assets of failed/assisted institutions (in billions)............. $0.00 $0.03 $0.03 $0.46 $0.14 $6.00 

**As of September 30. 

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

(dollar figures in millions) 

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

Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter % Change 

1997 1997 1996 96:3-97:3 

1,546 1,577 1,664 -7.1

 Commercial banks................................................................. 100 96 84 19.0

 Savings institutions................................................................ 1,446 1,481 1,580 -8.5 

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

CONDITION DATA 

191,368 192,500 196,314 -2.5 

Total assets............................................................................. $753,333 $754,509 $760,083 -0.9

 Loans secured by real estate, total....................................... 463,449 462,358 472,639 -1.9

 1-4 Family residential.......................................................... 375,575 373,860 375,178 0.1

 Multifamily residential property............................................ 36,089 36,504 38,631 -6.6

 Commercial real estate....................................................... 34,141 34,848 35,255 -3.2

 Construction, development and land................................... 17,409 16,923 23,396 -25.6

 Commercial & industrial loans............................................... 13,155 12,461 11,135 18.1

 Reserve for losses............................................................... 4,911 4,797 5,155 -4.7

 Total deposits........................................................................ 512,846 520,054 524,840 -2.3

 Domestic deposits................................................................. 512,846 519,763 524,771 -2.3

 Estimated insured deposits................................................... 474,939 484,260 491,913 -3.5

 BIF-insured deposits (estimated)........................................ 25,708 25,172 21,322 20.6

 SAIF-insured deposits (estimated)...................................... 449,231 459,088 470,591 -4.5

 Noncurrent loans and leases................................................ 6,164 6,022 6,446 -4.4

 Other real estate owned........................................................ 1,760 1,766 1,926 -8.6

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

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions:

64,126 63,622 61,540 4.2 

 Well capitalized..................................................................... 1,515 1,549 1,597 -5.1

 Adequately capitalized.......................................................... 28 24 63 -55.6

 Undercapitalized.................................................................... 3 2 3 0.0

 Significantly undercapitalized................................................ 0 1 0 0.0

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

Total assets:

0 1 1 0.0 

 Well capitalized..................................................................... $745,945 $742,158 $718,331 3.8

 Adequately capitalized.......................................................... 7,298 12,014 41,002 -82.2

 Undercapitalized.................................................................... 90 100 736 -87.8

 Significantly undercapitalized ............................................... 0 27 0 0.0

 Critically undercapitalized...................................................... 0 210 15 -100.0 

INCOME DATA 

Preliminary Preliminary 

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

Qtrs 1997 Qtrs 1996 %Change 1997 1996 96:3-97:3 

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

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

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

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

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

$16,473 $16,655 -1.1 $5,539 $5,631 -1.6 

1,257 1,293 -2.8 449 478 -6.0 

4,898 3,397 44.2 1,390 (449) N/M 

1,118 1,111 0.6 436 378 15.3 

59 369 -84.0 79 1,287 -93.9 

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

N/M - Not meaningful 
Number of FDIC-Insured "Problem" Institutions 

1992 1997 

Number of Institutions 

Savings Institutions 

Commercial Banks 

1,063 

572 

318 286 254 217 193 169 137 125 117 112 103 98 

Savings Institutions 

Commercial Banks 

12/92 12/93 12/94 3/95 6/95 

276 146 71 71 64 

787 426 247 215 190 

9/95 12/95 3/96 

59 49 42 

158 144 127 

6/96 

38 

99 

9/96 12/96 3/97 6/97 

36 35 35 29 

89 82 77 74 

9/97 

27 

71 

Assets of FDIC-Insured "Problem" Institutions 

1992 1997 

$ Billions 

$592 

$334 

$72 $66 $56 $37 $31 $27 $18 $15 $12 $10 $8 $7 

Savings Institutions 

Commercial Banks 

12/92 12/93 12/94 3/95 6/95 9/95 12/95 3/96 6/96 9/96 12/96 3/97 6/97 9/97 

Savings Institutions 184 92 39 39 33 17 14 13 10 8 7 5 3 2 

Commercial Banks 408 242 33 27 23 20 17 13 8 7 5 5 5 5 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 20 Third Quarter 1997