_ _ _ _ _ _ _ 

• Securities .:i,d Other Gains.;

Net I 11.B I 12.c 

The FDIC 

uarterlY-_____RlcklHeHer,Chalr man 

anking Bofile 

_ 

Second Quarter 1995 COMMERCIAL BANKING PERFORMANCE - SECOND QUARTER 1995 

• Earnings Surpass $12-Billion Level For The First Time 

• Loan Growth Is. Key To Increase In Revenues 

• Net Interest Income, Noninterest Income Set New Records 

Second-quarter earnings of insured commercial 

banks topped $12 billion for the first time, as strong 

growth in operating revenues lifted industry profits. 

Net income reported by the nation's 1O,168 insured commercial banks totaled $12.0 billion, an 

income was up by $2.3 billion, but noninterest 

expenses increased by $4.4 billion, and gains from 

securities sales were $437 million lower. 

Quarterly Net Income 

1991 -1995 increase of $864 million over the first quarter of $ Billions 

j 101

1995, and $836 million more than banks earned in 14 

the second quarter of 1994. The previous quarterly 12 11.5 1111- •10 8,11.111.2...:. l 

0 

·2 

5.5 

Net Operating Income 

I 8.5 ,

I

1

I - -

1775 9 .

•

77. ,

Ii •• I • _.64.3

• 3oJ 

 I I 

I I I I I I 

1234123412341234 12 

1991 1992 1993 1994 1995 

The industry's net interest margin, at 4.30 percent, 

was almost unchanged from the previous quarter's 

4.31 percent, but was below the 4.39 percent 

margin of a year ago. Over the last ten quarters, 

through a period of fluctuating interest rates, industry net interest margins have been relatively 

stable, remaining within a 21-basis-point range 

(from a high of 4.48 percent in the first quarter of 

1993 to a low of 4.27 percent in the first quarter of 

1994) while average asset yields and average 

funding costs have experienced much wider 

movements. 

Trading profits at large banks rebounded from a 

lackluster first quarter, helping noninterest income 

reach a record $20.2 billion in the second quarter. 

D . ,

earnings kO.B record was $11.8 billion, set in the third 3 1

I 



10 quarter of last year. The improvement in earnings . Ii 

-1

I 

was driven by higher net interest income (up $1.9 !I 

billion from a year ago) and increased noninterest I 6 income (up $1.6 billion). Sales of securities produced a net gain I for the first time in four quarters, 4 . 

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 

adding $350 million to pre-tax profits. A year ago, 

securities sales netted $185 million before taxes. 

Profitability, as measured by return on average 

assets (ROA), was unchanged from a year ago, at 

1.16 percent, but was up from the 1.1O percent 

ROA registered in the first quarter of 1995. The 

improvement in quarterly earnings was widespread; in each of the four asset-size groups and 

in all of the regions but the Midwest, over half the 

banks reported higher net income than a year 

earlier. Nationwide, more than 96 percent of all 

commercial banks were profitable in the second 

quarter, and two out of every three banks registered an ROA of 1 percent or higher. 

For the first six months of 1995, commercial banks 

earned a record $23.2 billion, an increase of $930 

million (4.2 percent) over the first half of 1994. The 

industry ROA for the first half of 1995 was 1.13 

percent, down from 1.17 percent in the same 

period of 1994. Net interest income was $4.4 

billion higher than a year ago, and noninterest 

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

Office of Corporate Communications, 550 17th Street, NW, Washington, DC 20429; telephone (202) 898-6996. 

Internet address: World Wide Web, www.fdic.gov. or Gopher, gopher.fdic.gov. 
--- ..  

.)· 

.-····--····...  

4.0 

100- ------------ -

.. ··-·········-.... ···-·· 

This exceeds the previous quarterly record of $20.1 billion, set in the fourth quarter of 1993, and represents an 

8.8-percent increase from a year ago. Banks' noninterest 

expense of $37.5 billion was 5.3 percent above the level 

of a year ago. 

Quarterly Net Interest Margins 

1991 - 1995 

Net Interest Margin (%) 

5.0 !"#$%&'()*+!",#-%&--

Assets < $100 Million 4.75% 

4.5 ..... ·-. .... •Ii• .. .. - ·-. .. .

. . . .... ..· . . ... Assets > $1 00 Million 4.27% 

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

1991 1992 1993 1994 1995 

For the first time since the first quarter of 1992, banks 

$18.2 billion, compared to a $32.8-billion increase in the 

previous quarter-but was still higher than in any quarter 

in 1994. Consumer loans increased by $13.2 billion, as 

credit card loans, which typically have higher yields, grew 

at twice the rate of other loans to individuals. Unused loan 

commitments rose by $95.7 billion in the second quarter, 

to $1.99 trillion. In the last twelve months, they have 

increased by over 25 percent ($404.6 billion), led by credit 

card commitments and commitments to make commercial and industrial loans. The amount of loans to small 

businesses and small farms, which is only reported at 

midyear, showed a smaller percentage increase (7.0 

percent) over the past twelve months than did total loans 

(12.5 percent). These loans - in original amounts of $1 

million or less to businesses and $500 thousand or less 

to small farms - totaled $371.6 billion at the end of the 

second quarter, $24.0 billion more than banks reported a 

year earlier. 

Net Loans and Leases to Deposits 

1984 - 1995 

% of Deposits 

---. 

Assets> $1 Billion 90.2% reported a year-to-year increase in the quarterly provision 90 

for loan losses. Banks set aside $2.9 billion in provisions 

for future losses in the second quarter, only $74 million 

more than in the second quarter of 1994. After three 80 

consecutive years of sizable reductions, provisions in the 

first six months of 1995 were slightly (0.6 percent) above Assets< $1 Billion 69.0% 

the level of last year. The decline in loan losses is con70 

...... . tinuing, but the rate of decline has slowed. In the first two ··-...-·....·····
*

quarters of 1995, net charge-offs were more than twelve 60 

percent below 1994 levels, a much smaller reduction than 

banks enjoyed in the previous two years, when chargeoffs declined by more than 30 percent annually. 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 

Banks continued to pursue higher asset yields in the 

second quarter, growing loans and reducing securities. 

Loan growth remained near a record pace in the second 

quarter, while banks' securities holdings declined for the 

fifth consecutive quarter. Total loans and leases grew by 

$74.5 billion, second only to the $77.9-billion increase in 

the fourth quarter of 1994. Securities declined by $7.5 

billion to $805.9 billion, almost $50 billion below the 

peak level of $855.5 billion, reached at the end of the 

first quarter of last year. The industry's loan-to-deposit 

ratio is at an all-time high, illustrating the loss of asset 

liquidity that has accompanied the recent growth in loans. 

Real estate loans enjoyed the strongest growth in the 

second quarter, posting an increase of $29.9 billion (more 

than four-fifths of which was residential mortgage loans). 

Commercial and industrial loan growth was considerably 

less than in the first quarter - C&I loans increased by 

In contrast, banks continued to reduce their securities 

holdings. The decline in securities came despite a $6.2­

billion positive swing in the valuation of their availablefor-sale securities. U.S. Treasury securities saw the 

greatest reduction, declining by $18.7 billion. Assets in 

trading accounts dropped by $35.4 billion, reflecting a 

decline in revaluation gains on off-balance-sheet contracts. 

Total deposits at commercial banks increased by $44.5 

billion in the second quarter, while nondeposit liabilities 

(excluding liabilities in trading accounts) grew by $36.1 

billion. Deposits in banks' foreign offices fell for the first 

time since the fourth quarter of 1992, declining by $2.8 

billion. Liabilities in trading accounts declined by $36.6 

billion, due to lower revaluation losses on off-balancesheet contracts. 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 Second Quarter 1995 
/ 

Noncurrent loans declined by $652 

million (2 percent) in the second quarter. At $31.7 billion, noncurrent loans 

were 11 .8 percent below the level of a 

year ago. Total troubled assets ­

noncurrent assets plus other real estate owned - represented only 0.94 

percent of total commercial bank assets at midyear, down from 0.99 percent at the end of March and 1.27 

percent a year ago. Troubled assets 

are now almost two-thirds below their 

peak of $109.5 billion, set at the end 

of June, 1991 . Banks increased their 

reserves for future loan losses by 

$150 million, to $52.9 billion at midyear. The industry's "coverage ratio" 

increased to $1.67 in reserves for 

every $1.00 of noncurrent loans, up 

from $1.46 a year ago and $1.63 at the 

end of the first quarter. The number of 

Credit Risk Diversification: Retail Loans versus Loans to Commercial Borrowers 

(as a % of Total Loans) 

% of Loans 

80 

69 

60 

40 

20 

0 

Loans ($ Billions): 12/86 12/90 12/92 12/94 6/95 

I Commercial Borrowers $1,214 $1,268 $1,320 $1,192 $1,308 $1,394 

[l Retail Loans 558 680 804 849 1,056 1,111 

Loans to Commercial Borrowers (Credit Risk Concentrated): These are loans with relatively large 

balances at risk to a single borrower. A single loan may represent a significant proportion of an institution's 

capital or income. Therefore, a relatively small number of defaults could impair an institution's capital or 

income. These loans include commercial and industrial loans, multifamily mortgages, commercial real estate 

and construction loans and agricultural loans. 

Retail Loans (Credit Risk Diversified): These are loans that typically have relatively small balances spread 

among a larger number of borrowers. A number of defaults are likely but typically do not impair an institution's 

capilal or income. These loans include consumer and credit card loans, 1-4 family residential mortgages and 

home equity loans. 

insured commercial banks declined by 73 institutions were 23 new banks chartered, and only one bank failed 

during the second quarter, from 10,241 banks at the end during the quarter. The number of banks on the FDIC's 

of March to 10,168 at midyear. Mergers absorbed 101 "Problem List" tell from 215 to 190; the combined assets 

banks, significantly fewer than the 228 banks that were of "problem" banks declined from $27 billion at the end of 

merged into other institutions in the first quarter. There the first quarter to $23 billion. 

D Less than 0% 

EE] 0%to5% 

- 5%1010% 

Greater than 10% 

FDIC Quarterly Banking Profile 

Commercial and Industrial Loan Growth Rates* 

June 30, 1994-June 30, 1995 

Midwest Central 

21.5 

12.4 

Puerto 

-

Rico 

25.8 

• Some growth rates have been adjusted to reflect significant interstate 

migrations. See Notes to Users pp. 21-23. Growth in Connecticut 

reflects a large purchase of loans from a non-banking institution. 

Second Quarter 1995 3 FDIC-Insured Commercial Banks 
5.54 

3.74 

$23 $42 $33 $342 

5,736 

21,745 

7,933 

5.7 

89.1 

15.4 

N/M 

7.5 

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

1995• 1994* 1994 1993 1992 1991 1990 

Return on assets (%) ................................................. 1.13 1.17 1.15 1.20 0.93 0.53 0.48 

Return on equity (%) ................................................. 14.30 14.78 14.61 15.34 12.98 7.94 7.45 

Core capital (leverage) ratio(%) ............................... 7.61 7.70 7.64 7.65 7.20 6.48 6.17 

Noncurrent assets plus 

other real estate owned to assets (%) ..................... 0.94 1.27 1.01 1.61 2.54 3.02 2.94 

Net charge-offs to loans(%) ...................................... 0.41 0.53 0.50 0.85 1.27 1.59 1.43 

Asset growth rate(%) ................................................ 7.15 9.05 8.21 5.72 2.19 1.21 2.73 

Net interest margin(%) ............................................. 4.30 4.33 4.36 4.40 4.41 4.11 3.94 

Net operating income growth(%) .............................. 20.65 16.18 35.37 92.41 -0.63 2.53 

Number of institutions reporting ................................ 10,168 10,716 10,450 10,958 11,462 11,921 12,343 

Percentage of unprofitable institutions ...................... 3.20 3.89 4.87 6.85 11.60 13.44 

Number of problem institutions .................................. 190 338 247 426 787 1,016 1,012 

Assets of problem institutions (in billions) ................. $242 $408 $528

Number of failed/assisted institutions ........................ 4 4 11 42 100 108 159 

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

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

(dollar figures in milllons) 

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

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

CONDITION DATA 

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

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

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

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

Farm loans ........................................................................ . 

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

Less: Unearned income .................................................... . 

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

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

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

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

Preliminary 

2nd Quarter 1st Quarter 2nd Quarter %Change 

1995 1995 1994 94:2-95:2 

10,168 10,241 10,716 -5.1 

1,479,385 1,474,125 1,495,677 -1.1 

$4,170,706 $4,116,101 $3,892,567 7.2 

1,049,956 1,020,086 944,008 11.2 

640,085 621,903 564,723 13.4 

503,105 489,894 438,490 14.7 

40,321 37,325 39,740 1.5 

270,906 260,561 239,606 13.1 

6,212 6,149 6,131 1.3 

2,498,161 2,423,621 2,220,436 12.5 

52,931 52,781 52,442 0.9 

2,445,230 2,370,840 2,167,994 12.8 

805,884 813,342 848,968 -5.1 

Other real estate owned .......... ............................................ . 7,350 13,268 -44.6 

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

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

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

Non interest-bearing deposits ................................................ . 

26,875 26,275 20,264 32.6 

885,366 897,712 842,072 5.1 

4,170,706 4,116,101 3,892,567 7.2 

562,636 530,313 547,473 2.8 

Interest-bearing deposits ...................................................... . 2,344,407 2,332,232 2,218,464

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

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

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

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

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

Non current loans and leases ................................................. .. 

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

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

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

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

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

Long-term assets (5+ years)................................................. .. 

Volatile liabilities ............................................. ....................... . 

Foreign office deposits ........................................................... . 

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

Off balance-sheet derivatives ...................... .. 

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 ......................................................... . 

647,931 616,473 556,472 16.4 

42,201 40,821 37,430 12.8 

238,695 272,095 227,759 4.8 

334,836 324,184 304,968 9.8 

28,751 30,574 25,667 12.0 

31,668 32,320 35,921 -11.8 

5,478 5,495 6,216 -11.9 

578 586 570 1.4 

607,452 583,189 529,775 14.7 

319,627 320,469 334,988 -4.6 

3,602,603 3,523,410 3,337,395 8.0 

556,381 546,846 549,954 1.2 

1,244,877 1,222,338 1,078,958 15.4 

439,551 442,305 377,397 16.5 

1,987,454 1,891,775 1,582,872 25.6 

17,912,715 17,991,424 15,322,137 16.9 

Preliminary Preliminary 

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

1995 1994 %Change 1995 1994 94:2-95:2 

$148,007 $124,830 18.6 $75,597 $64,251 17.7 

71,947 53,169 35.3 37,234 27,759 34.1 

76,060 71,660 6.1 38,363 36,491 5.1 

5,583 5,547 0.6 2,900 2,826 2.6 

39,346 37,086 6.1 20,169 18,532 8.8 

74,507 70,140 6.2 37,464 35,581 5.3 

307 744 -58.7 350 185 

12,487 11,538 8.2 6,501 5,632 

24 (36) NIM (11) 2 

23,160 22,230 4.2 12,007 11,171 

Net charge-offs ..................................................... . 5,031 -12.3 2,756 3,134 -12.0 

Cash dividends ..................................................... . 13,009 11,097 17.2 6,743 5,897 14.3

Net operating income ......................................... . 22,949 5.5 11,789 11,026 6.9 

N/M-Not meaningful 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 Second Quarter 1995 
3.7 2.7 1.5 2.7 1.9 8.2 

57.7 65.3 

4.45 3.93 

4.33 5.27 

1.75 2.39 

3.95 4.47 3.55 

7.57 

9.8 

9.5 5.7 

4.2 

55 

954 

45 

3.34 

7.53 

TABLE Ill-A. First Half 1995, FDIC-Insured Commercial Banks 

Less 

Asset Size Distribution 

$100 Million $1 Billion Greater 

Geographic Distribution by Region 

East I West 

FIRST HALF Preliminary 

(The way It is ... ) 

All 

Institutions 

than $100 

Million 

to 

$1 Billion 

to 

$1 o Billion 

than $10 

Billion 

Northeast 

Southeast Central I Midwest 

Southwest West 

Number of institutions reporting .... ........... 10,168 6,986 2,783 331 68 815 1,684 2,220 2,560 1,815 1,074 

Total assets (in billions) ............................. 

Total deposits (in billions) .......................... 

$4,170.7 

2,907.0 

$306.6 

266.1 

$680.7 

569.8 

$1,057.2 

749.6 

$2,126.2 t1,590.0 

1,321.5 989.9 

$701.5 

514.1 

$681.5 

493.4 

$268.7 

200.9 

$313.0 

248.5 

$616.0 

460.3 

Net income (In millions) ............................. 23,160 4,095 7,791 3,929 1,861 3,857

2.1 5.4 3.1 1.8 

1,780 6,637 10,648 3,919 1,804 

% of unprofitable institutions ..................... 3.2 

% of institutions with earnings gains ......... 58.9 57.3 62.6 60.4 60.3 63.4 65.4 60.0 50.3 

Performance Ratios (annualized, %) 

Yield on earning assets ............................. 8.37 8.26 8.33 8.53 8.32 8.52 8.19 8.19 8.43 7.81 8.70 

Cost of funding earning assets .................. 4.07 3.50 3.54 3.88 4.58 4.04 3.86 3.48 3.43 

Net interest margin .................................... 4.30 4.76 4.79 4.65 3.87 3.95 4.26 4.15 4.57 

Noninterest income to earning assets .. : .... 2.23 1.20 1.40 2.35 2.61 2.76 1.73 1.58 2.41 

Noninterest expense to earning assets ..... 4.22 3.94 4.28 4.32 3.85 4.30 4.11 4.80 

Net operating income to assets ................. 1.12 1.19 1.23 1.28 0.99 0.96 1.16 1.16 1.41 1.18 1.29 

Return on assets .........................•••••.••••.•• 1.13 1.18 1.23 1.27 1.02 0.99 1.15 1.17 1.41 1.17 1.28 

Return on equity ........................................ 14.30 11.61 13.38 15.31 14.64 13.46 14.43 14.49 16.24 13.98 15.14 

Net charge-offs to loans and leases.......... 0.41 0.17 0.32 0.60 0.37 0.54 0.26 0.25 0.45 0.17 0.57 

Loan loss provision to net charge-offs ...... 110.95 157.48 124.21 121.68 94.09 111.72 101.09 145.03 111.51 132.85 96.31 

Condition Ratios (%) 

Loss allowance to: 

Loans and leases .................................... 2.12 1.63 1.66 2.05 2.38 2.56 1.71 1.71 1.77 1.58 2.43 

Noncurrent Joans and leases .................. 167.14 146.29 153.77 185.02 165.03 145.29 204.39 197.79 211.07 177.91 167.88 

Noncurrent assets plus 

other real estate owned to assets ........... 0.94 0.86 0.88 0.86 1.01 1.18 0.69 0.64 0.65 0.65 1.22 

Equity capital ratio ..................................... 8.03 10.39 9.36 8.49 7.03 7.50 8.07 8.22 8.83 8.60 8.49 

Core capital (leverage) ratio ...................... 7.61 10.39 9.21 8.08 6.48 7.11 7.95 8.68 8.18 7.82 

Net loans and leases to deposits .............. 84.11 64.01 71.32 90.45 90.08 85.65 85.44 85.20 82.69 67.51 87.74 

Growth Rates (year-to-year,%) 

Assets . - ....................................................... 7.2 4.2 . 14.3 6.6 7.0 6.7 8.3 

Equity capital ............................................. . . 9.9 14.7 9.6 7.4 8.7 6.6

Net interest income ................................... 6.1 . . . . 4.2 3.7 4.1 10.1

Net income ...................... ,......................... . . . . -2.0 6.2 5.8 1.0 2.7 17.8

Noncurrent assets plus 

other . . real estate owned ........................... -20.3 - . -24.1 -10.4 -13.0 -19.0 -11.9 -22.1 

Net charge-offs . . . . .......................................... -12.3 -30.0 35.0 -6.8 23.6 92.3 2.8 

Loan . . . . loss provision ................................... 0.6 -14.2 23.6 5.3 16.9 135.0 15.4 

PRIOR FIRST HALVES 

(The way It was . .. ) 

Number of instltutlons ....................... 1994 10,716 7,559 2,774 328 853 1,788 2,351 2,667 1,899 1,158

......................................... 1992 11,686 8,555 2,757 328 46 1,904 2,580 2,831 2,077 1,340

......................................... 1990 12,505 9,501 2,632 327 1,078 1,960 2,792 2,973 2,234 1,468

$3,892.6 

3,438.3 

3,361.4 

1.17 

0.92 

0.69 

0.53 

1.20 

1.46 

1.27 

2.93 

$613.7 

521.7 

497.2 

1.22 

1.04 

0.76 

0.23 

0.78 

0.71 

0.88 

2.05 

$639.3 $251.1 $293.5 $568.6 

565.3 232.8 271.8 542.7 

540.8 213.8 263.9 532.9 

1.18 1.47 1.19 1.17 

1.09 1.29 1.10 0.79 

0.86 1.06 0.55 1.10 

0.30 0.40 0.10 0.62 

0.75 0.74 0.74 1.04 

0.97 0.97 1.29 1.11 

0.78 0.86 0.79 1.70 

1.61 1.49 2.09 3.58 

Total assets (in billions) ..................... 1994 $1,810.3 Ą1,526.4

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

......................................... 1990 

Return on assets (%) ........................ 1994 

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

......................................... 1990 

Net charge-offs to loans & leases (%) 

......................................... 1994 

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

......................................... 1990 

Noncurrent assets plus 

OREO to assets (%) ...................... 1994 

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

$326.2 

348.0 

362.6 

1.17 

1.11 

0.80 

0.17 

0.45 

0.56 

0.97 

1.58 

$676.6 

669.7 

635.5 

1.19 

1.04 

0.90 

0.33 

0.64 

0.67 

1.14 

2.01 

$1,079.4 

1,062.1 

1,049.4 

1.40 

1.00 

0.63 

0.64 

1.39 

1.36 

1.16 

2.73 

1,358.4 

1,313.9 

1.01 

0.74 

0.61 

0.59 

1.49 

2.13 

1.43 

3.89 

1,303.9 

1,312.9 

1.08 

0.74 

0.40 

0.83 

1.80 

2.19 

1.62 

4.02 

......................................... 1990 2.46 1.73 1.84 2.18 3.18 1.58 1.38 1.45 3.02

Equity capital ratio (%) ...................... 1994 7.83 9.91 8.88 8.24 6.83 7.11 8.04 7.99 8.80 8.44 8.63

......................................... 1992 7.22 9.38 8.17 7.48 6.00 6.43 7.66 7.75 8.55 7.36

......................................... 1990 6.43 9.09 7.75 6.52 4.99 5.66 7.16 7.04 7.95 6.61 6.35

REGIONS: Northeast- Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire New Jersey New York Pennsylvania Puerto Rico ' ' ' ' ' Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

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

FDIC Quarterly Banking Profile 

Second Quarter 1995 5 FDIC-Insured Commercial Banks 

2.31 
TABLE IV-A Second Quarter 1995 ' FDIC-Insured Commercial Banks 

SECOND QUARTER Preliminary 

(The way it is . . . ) 

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

All 

Institutions 

10,168 

Asset Size Distribution Geographic Distribution by Region 

Less 

than $100 

Million 

6,986 

$100 Million $1 Billion 

to to 

$1 Billion $10 Billion 

2,783 331 

Greater 

than $10 

Billion 

68 

East I West 

Northeast 

815 

South- I Mideast Central west 

1,684 2,220 2,560 

Southwest 

1,815 

West 

1,074 

Total assets (in billions) ............................. $4,170.7 $306.6 $680.7 $1,057.2 $2,126.2 °1,590.0 $701.5 $681.5 $268.7 $313.0 $616.0 

Total deposits (in billions) .......................... 2,907.0 266.1 569.8 749.6 1,321.5 989.9 514.1 493.4 200.9 248.5 460.3 

Net income (in millions) ............................. 12,007 900 2,083 3,337 5,687 4,161 2,037 2,005 940 977 1,887 

o/o of unprofitable institutions ..................... 3.8 4.2 2.8 2.4 0.0 6.0 3.3 3.0 2.4 3.1 8.8 

o/o of institutions with earnings gains ......... 

Performance Ratios (annualized, %) 

55.7 53.4 60.8 60.7 54.4 60.5 60.6 56.8 48.4 55.0 60.4 

Yield on earning assets ............................. 8.48 8.40 8.46 8.65 8.41 8.59 8.31 8.30 8.54 7.94 8.87 

Cost of funding earning assets .................. 4.18 3.64 3.68 4.00 4.54 4.64 4.08 4.17 3.97 3.62 3.54 

Net interest margin .................................... 4.30 4.75 4.78 4.65 3.87 3.95 4.24 4.13 4.57 4.32 5.33 

Noninteiest income to earning assets ....... 2.26 1.23 1.42 2.39 2.66 2.85 1.77 1.61 2.38 1.77 2.35 

Noninteresl expense lo earning assets .... 4.20 3.97 3.93 4.29 4.29 4.47 3.81 3.53 4.26 4.02 4.85 

Net operating income to assets ................. 1.14 1.18 1.23 1.28 1.03 1.00 1.19 1.17 1.40 1.24 1.23 

Return on assets .. ............ ........... 1.16 1.19 1.24 1.27 1.07 1.04 1.18 1.19 1.42 1.26 1.24 

Return on equity ........................................ 14.56 11.52 13.33 15.09 15.41 14.15 14.67 14.55 16.11 14.81 14.60 

Net charge-offs to loans and leases .... 045 0.20 0.36 0.72 0.36 0.50 0.29 0.28 0.48 0.18 0.77 

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

Growth Rates (year-to-year,%) 

105.19 138.10 117.47 109.25 93.82 112.68 91.64 136.40 112.29 145.78 82.88 

Net interest income ................................... 5.13 . - - - 3.01 8.22 2.50 2.94 4.84 9.86 

Net income ................................................ 7.49 - . - - 6.82 7.21 4.78 -1.22 15.09 13.59 

Net charge-offs .......................................... -12.04 - - -41.30 57.06 1.74 36.62 63.71 29.27 

Loan loss provision ................................... 

PRIOR SECOND QUARTERS 

(The way it was ... ) 

2.59 . . - -20.59 33.72 20.30 32.94 115.61 25.40 

Return on assets (%) ........................ 1994 1.16 1.19 1.19 1.38 1.01 1.03 1.24 1.21 1.52 1.15 1.17 

........................................ 1992 0.92 1.11 1.05 1.03 0.72 0.73 1.11 1.13 1.27 1.10 0.74 

........................................ 1990 

Net charge-offs to loans & leases (%) 

0.62 0.77 0.88 0.57 0.49 0.31 0.75 0.85 0.97 0.57 0.92 

........................................ 1994 0.57 0.21 0.39 0.68 0.63 0.93 0.22 0.31 0.40 0.13 0.67 

........................................ 1992 1.21 0.51 0.70 1.39 1.46 1.83 0.72 0.75 0.77 0.71 1.06 

........................................ 1990 1.63 0.67 0.77 1.31 2.53 2.46 0.74 0.84 1.03 1.47 1.51 

Commercial Banks Make More Credit Available 

to Businesses and Consumers 

Quarterly Increase In Loans Quarterly Increase In Unused Loan Commitments 

($ Billions) (S Billions) 

$116.4 

$102.6 

9/93 12193 3194 6194 9194 12/94 3195 6/95 

In the second quaner ol 1995, home mongage loans increased 

by $24.3 billion. while commercial and industrial loans 

increased by $18.2 billion and loans to individuals 

increased by $13.2 billion. 

9/93 12/93 3/94 6/94 9/94 12/94 3/95 6/95 

In the second quarter of 1995, unused credit card commnments 

increased $63.0 billion, and unused commitments for loans to 

businesses and consumers increased $28.5 billion. 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 6 Second Quarter 1995 
TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

June 30, 1995 All 

institutions 

Asset Size Distribution Geographic Distribution by Region 

Less 

than $100 

Million 

$100 Million $1 Billion 

to to 

$1 Billion $10 Billion 

Greater 

than $10 NorthBillion east 

East I West 

South- I Mid- Southeast Central west west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate .............................. 1.25 1.29 1.10 1.14 1.40 1.62 1.12 1.10 0.86 1.11 1.19 

Construction and development... ........................... 1.42 1.28 1.12 1.50 1.61 1.69 1.04 1.57 1.04 1.06 1.86 

Commercial real estate ......................................... 1.21 1.09 0.95 1.09 1.56 1.98 0.86 1.03 0.90 0.77 1.08 

Multifamily residential real estate .......................... 1.16 0.83 0.95 0.99 1.55 0.96 0.73 1.24 0.55 0.56 2.13 

1-4 Family residential* ........................................... 1.28 1.52 1.26 1.21 1.27 1.41 1.36 1.16 0.89 1.31 1.18 

Home equity loans ................................................. 0.90 1.33 0.82 0.73 1.01 1.33 0.61 0.66 0.56 1.43 0.75 

Commercial and industrial loans*' .......................... 0.88 1.51 1.38 0.93 0.58 0.70 0.82 1.06 1.80 1.03 0.76 

Loans to individuals ................................................. 1.81 1.96 1.59 1.77 1.93 2.14 1.49 1.70 1.82 1.57 1.64 

All other loans and leases (including farm) ............. 0.29 N/A N/A 0.59 0.24 0.28 0.20 0.39 0.23 0.23 0.32 

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

Percent of Loans Noncurrent*** 

0.85 1.17 0.70 1.04 0.80 1.29 0.95 0.96 0.59 0.33 0.46 

All real estate loans ................................................. 1.62 1.03 1.15 1.35 2.24 2.64 1.01 0.97 0.81 1.00 2.00 

Construction and development. ............................. 3.43 1.13 1.42 2.80 6.31 7.31 1.61 2.21 0.89 1.14 5.31 

Commercial real estate ......................................... 2.54 1.33 1.63 2.19 3.91 . 4.67 1.59 1.42 1.39 1.44 2.83 

Multifamily residential real estate .......................... 2.94 1.79 1.54 1.81 5.32 4.75 1.25 1.46 0.85 0.63 5.24 

1-4 Family residential* ........................................... 0.87 0.77 0.80 0.74 1.03 1.26 0.65 0.60 0.44 0.69 1.05 

Home equity loans ................................................. 0.56 0.91 0.51 0.48 0.60 0.91 0.31 0.31 0.21 0.86 0.50 

Commercial and industrial loans** ................ , ......... 1.26 1.48 1.34 0.93 1.22 1.50 0.80 1.06 1.27 1.20 1.36 

Loans to individuals ................................................. 1.07 0.66 0.57 1.03 1.38 1.77 0.62 0.66 0.89 0.49 0.78 

All other loans and leases (including farm) ............. 0.38 N/A N/A 0.47 0.39 0.46 0.25 0.19 0.22 0.23 0.47 

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

Percent of Loans Charged-off 

(net, annualized) 

1.77 1.10 0.46 0.62 2.22 4.15 1.01 0.40 0.68 0.47 0.67 

All real estate loans ................................................. 0.19 0.05 0.14 0.21 0.24 0.32 0.05 0.05 0.01 -0.02 0.47 

Construction and development. ............................. 0.33 0.09 0.16 0.40 0.45 0.55 0.02 0.33 0.06 -0.20 0.82 

Commercial real estate ......................................... 0.36 0.06 0.22 0.48 0.44 0.60 0.09 0.07 0.00 -0.05 0.93 

Multifamily residential real estate .......................... 0.26 0.11 0.25 0.24 0.31 0.59 0.01 -0.01 0.10 -0.12 0.54 

1-4 Family residential* ........................................... 0.10 0.06 0.08 0.05 0.15 0.21 0.03 0.01 0.02 0.02 0.16 

Home equity loans ................................................. 0.18 0.14 0.12 0.08 0.27 0.17 0.05 0.04 -0.01 0.08 0.44 

Commercial and industrial loans** .......................... 0.14 0.25 0.27 0.12 0.09 0.21 0.06 0.10 0.16 0.13 O.o7

Loans to individuals ................................................. 1.51 0.41 0.90 1.68 1.75 1.92 1.11 0.97 1.72 0.71 1.90 

All other loans and leases (including farm) ............. 0.04 NIA N/A 0.26 -0.02 -0.04 0.10 0.06 0.07 0.12 0.17 

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

Loans Outstanding (in billions) 

-0.13 0.50 1.02 -0.01 -0.27 -0.39 -0.12 0.10 -0.08 -0.17 I 

0.05 

All real estate loans ................................................. $1,050.0 $96.6 $240.2 $299.9 $413.2 $292.6 $232.8 $184.0 $69.8 $79.4 $191.4 

Construction and development. ............................. 66.5 6.4 17.2 21.2 21.7 12.0 18.5 11.2 4.3 6.6 14.0 

Commercial real estate ......................................... 291.9 26.1 79.4 88.4 97.9 72.9 66.7 55.2 18.5 22.8 55.8 

Multifamily residential real estate .......................... 33,5 2.3 8.3 11.5 11.4 8.1 7.1 6.3 2.4 2.3 7.3 

1-4 Family residential* ........................................... 528.5 48.4 114.6 150.1 215.4 148.3 121.2 90.4 34.5 43.9 90.1 

Home equity loans ................................................. 78,9 2.4 12.7 25.6 38.2 26.1 15.4 14.9 2.6 1.0 18.9 

Commercial and industrial loans ............................. 640.1 28.3 71.5 148.2 392.2 248.8 94.0 118.5 36.0 44.1 98.7 

Loans to individuals ................................................. 503.1 27.0 81.3 196.9 197.8 179.2 87.5 86.6 39.2 33.6 77.0 

All other loans and leases (including farm) ............. 311.2 22.2 22.0 48.5 218,6 152.5 33.8 39.3 24.2 14.0 47.4 

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

Memoranda: 

Other Real Estate Owned (in millions) 

17.6 0.2 1.2 3.5 12.7 5.6 2.3 2.2 0.6 0.8 6.1 

All other real estate owned ...................................... $7,350 $715 $1,485 $1,349 $3,801 $3,304 $1,126 $561 $334 $489 $1,537 

Construction and development... ........................... 1,212.7 104.9 316.1 363.9 427.7 383.6 312.8 113.8 67.0 68.2 267.3 

Commercial real estate ......................................... 3,941.5 347.4 731.2 676.5 2,186.3 1,821.7 556.4 311.5 191.2 291.1 769.6 

Multifamily residential real estate .......................... 276.1 27.3 67.1 55.4 126.4 147.0 25.1 19.4 6.6 9.5 68.5 

1-4 Family residential. ........................................... 1,342.8 180.6 325.3 237.5 599.4 511.0 209.5 103.3 43.1 88.2 387.7 

Farmland ............................................................... 150.9 55.1 45.0 13.5 37.4 14.9 22.3 12.6 26.0 31.6 43.6 

Other real estate owned in foreign offices ............. 426.2 0.0 0.0 2.4 423.8 426.2 0.0 0.0 0.0 0.0 0.0 

*Excludes home equity loans. N/A - Not available 

**Includes "All other loans" for institutions under $1 billion in asset size. 

***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. 

FDIC Quarterly Banking Profile 

Second Quarter 1995 7 FDIC-Insured Commercial Banks 
2 

0 

3.5 -

2.5 

SAVINGS INSTITUTIONS PERFORMANCE - SECOND QUARTER 1995 

• Savings Institutions Earn $1.9 Billion In The Second Quarter 

• Noninterest Expense Reductions Help Offset Lower Net Interest Income 

• Asset Quality Improvements Help Bottom Line 

• Industry Assets Increase $3.4 Billion During The Quarter 

Savings institutions earned $1.9 billion in the second quarter of 1995, for an annualized return on 

assets (ROA) of 0.76 percent. Net income in the 

second quarter was $179 million higher than in the 

first quarter. An increase in noninterest income 

and a reduction in noninterest expenses helped to 

compensate for lower net interest income. Noninterest income rose by $282 million while noninterest expenses declined by $112 million from the first 

quarter. Over 94 percent of all savings institutions 

were profitable in the second quarter and none of 

the 35 largest thrifts - those institutions with over 

$5 billion in assets - lost money. 

Second-quarter earnings were $129 million higher 

than the second quarter of last year, primarily 

because of increased earnings at larger thrifts. 

More than 60 percent of the thrifts with over $1 

billion in assets reported improved earnings compared to last year's second quarter, while more 

than half of the institutions with less than $1 billion 

reported lower earnings. 

Quarterly Net Income, 1991 - 1995 

$ Billions 

point increase to 0.47 percent from an aggregate 

ROA of 0.31 percent in the first quarter. ROAs in 

other regions ranged from 0.79 percent (Southeast 

Region) to 0.96 percent (Central Region). 

Profitability was down slightly for smaller institutions as net interest margins narrowed. The aggregate ROA for savings institutions with less than 

$100 million in assets declined sharply, to 0.57 

percent from 0.76 percent in the first quarter; however, most of this decline was caused by one 

institution that liquidated 96 percent of its assets 

during the second quarter.1 With just $37 million 

in assets remaining, this institution fell into the 

smallest size group at midyear. Excluding this 

institution, the average ROA for thrifts with less 

than $100 million in assets would have declined 

from 0.76 percent to 0.72 percent. 

Quarterly Net Interest Margins 

1991 -1995 

Net Interest Margin (%) 

4.5 ,-,-)*-r--r---,----,----,----r---r--,---,--.----,--,--.---,-, 

4.0 Assets <$100 Million 3.50%

.. 1.9 I 3.0 

1.9 Assets >$100 Million 3.02% 1.8 I

1.6 1.7 

.. ... ...... 3 1---------------2 +· • Securities and Other Gains, 3et . . D .. Net Operating Income ; 2.4 

. . . I 

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

1991 1992 1993 1994 1995 

Earnings were mixed across the country with half 

of the regions reporting slight declines and half 

reporting increases from first-quarter levels. Thrifts 

in the West Region, which still have the lowest 

profitability of any region, achieved the largest 

improvement in ROA. They registered a 16-basis2.0 

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

1991 1992 1 993 1994 1995 

The industry's net interest margin declined to 3.05 

percent in the second quarter from 3.11 percent 

in the first quarter. Yields on earning assets rose 

by 21 basis points, but failed to keep pace with 

the 27-basis-point increase in funding costs. Institutions with less than $100 million in assets 

1

Union Federal Bank, FSB, in Brea, California liquidated most of 

its assets. Its asset size dropped from $876 million at the end of 

the first quarter to $37 million as of June 30, 1995. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 Second Quarter 1995 
reported a 16-basis-point decline in their net interest margin, while institutions with $100 million to 

$1 billion in assets reported a 14 basis-point decline. Larger thrifts reported little change in net 

interest margins during the second quarter. 

Earnings for the first half of 1995 were $577 million 

higher than in the first half of 1994. The improvement in industry earnings has stemmed mostly 

from reductions in expenses. Provisions for loan 

losses in the first half were down by $443 million. 

Noninterest expenses were almost $1 billion lower 

in the first half of this year compared with the first 

six months of last year. Noninterest expense averaged 2.37 percent of earning assets in the first six 

months of 1995, the lowest level since 1989. Earnings have also received a boost from noninterest 

income, which was $273 million higher than in the 

same period of last year. 

Asset growth continued at savings institutions. Industry assets rose by $3.4 billion during the second 

quarter despite a net transfer of $11.7 billion to 

commercial banks. Securities increased by $3.5 

billion, with mortgage-backed securities (MBS) accounting for $2.6 billion of this growth, while 1-4 

family residential mortgages declined by $2.0 billion. A large securitization transaction produced 

the net increase in MBS and the net decline in 1-4 

family residential mortgages.2 Otherwise, 1-4 family residential mortgages would have grown by 

$3.8 billion and securities would have fallen by 

$1.5 billion. Almost two-thirds of all thrifts reported 

increases in 1-4 family residential mortgages and 

over half showed declines in securities. For the 

industry, 1-4 family residential mortgages remained $22 billion above the level of a year ago, 

and now account for 47 percent of total assets. 

Equity capital increased by $1.5 billion in the second quarter, to 8.18 percent of assets. The thrift 

industry has not seen an equity capital ratio at this 

level since achieving the same ratio in 1952. Savings institutions paid $843 million in dividends and 

retained over $1 billion in earnings as capital during the second quarter. With a drop in interest 

rates, thrift securities portfolios showed an aggregate unrealized gain as opposed to the loss positions reported over the past year. This swing in the 

value of available-for-sale securities added $752 

2During the second quarter Home Savings of America, FSB in

Irwindale, California securitized $6.4 billion in 1-4 family mortgages. 

FDIC Quarterly Banking Profile 

Second Quarter 1995 9 

million to capital during the second quarter. The 

core capital (leverage) ratio, which does not reflect 

valuation changes for available-for-sale securities, 

also rose, to 7.70 percent from 7.63 percent at the 

end of the first quarter. The increase in core capital 

came primarily from retained earnings. 

Savings institutions reported a slight rise in the 

"coverage ratio" (reserves to noncurrent loans), 

to 82 cents in reserves for each dollar of noncurrent loans, up from 81 cents at the end of the first 

quarter. A year ago the "coverage ratio" stood at 

72 cents for each dollar of noncurrent loans. Both 

reserves and noncurrent loans declined in the 

second quarter, but noncurrent loans fell by 

twice as much as reserves. Noncurrent loans 

were down by $298 million while reserves for 

loan losses fell by $145 million. In the last 12 

months thrifts have reduced their noncurrent 

loans by $2.7 billion. 

Coverage Ratio and Reserve Levels* 

1990-1995 

$ Billions Coverage Ratio 

40� ---------------, 100 

30 

20 

Noncurrent 

Loa�:;�!.� 

.... -··· ·······

-..... 

Coverage Ratio (%) ·� 

� 

75 

50 

......... 

··

-

················

·

·····

10 - · ·

·

:��=��::·7····

·-··-··-··-··-·····-··-·

·-··

· 

25 

Reserves ($) 

1 2 3412 3412 3412 3412 3412 

1990 1991 1992 1993 1994 1995 

• Loan�Loss Reserves to Noncurrent Loans and Leases 

Reserve levels are now at a three-year low. They 

have declined for the past five quarters after 

reaching a peak at 1.42 percent of total loans at 

the end of the first quarter of 1994. However, 

asset quality has improved with noncurrent loans 

falling in 16 of the last 17 quarters and the risk 

characteristics of thrifts' loan portfolios have 

been changing, as described below. The loss 

allowance fell to 1.15 percent of total loans at the 

end of the second quarter. Thrifts have slowed the 

decline in their reserves this year by not reducing 

provisions for loan losses by as much as their net 

charge-offs have fallen. Provisions in the first half 

of this year were $443 million lower than in the first 

half of 1994, while net charge-offs were $608 

FDIC-Insured Savings Institutions 
million lower. Net charge-offs were 0.33 percent of 

loans and leases in the first half compared to 0.54 

percent in the first half of last year. 

Retail loans - residential mortgage loans and 

loans to individuals where credit risks are diversified among a large number of borrowers -

have increased to 78 percent of all loans, from 

just two-thirds at the end of 1988. Default rates 

on these loans are more predictable than on 

loans to commercial borrowers. Residential 

mortgages loans, which have considerably 

lower credit risk, now comprise 72 percent of all 

loans. Other types of loans - including those 

to commercial borrowers - are down to 22 

percent of loans from almost one-third of the 

loan portfolio at the end of 1988. Some of these 

loans may have large balances at risk to a single 

borrower. 

The number of savings institutions declined by 37, 

from 2,118 to 2,081 institutions at the end of the 

second quarter. Commercial banks absorbed 27 

savings institutions with $11.9 billion in assets 

during the second quarter. Consolidation within 

the thrift industry accounted for a decline of nine 

institutions. Two thrifts failed in the second quarter 

and one new charter was issued. During the second quarter, 28 institutions, with $4.9 billion in 

assets, converted from mutual to stock ownership. 

At the end of the second quarter there were 64 

"problem" institutions with $33 billion in assets, 

down from 71 institutions with $39 billion in assets 

at the end of the first quarter. 

Credit Risk Diversification: Retail Loans and Loans to 

Commercial Borrowers 

% of Loans 

so.--��� ����������������� �--. 

0 

Loans($ Billions): 12/86 

I Commercial Borrowers $314 

[] Retail Loans 593 

12/88 

$345 

694 

12/90 

$245 

592 

12/92 

$160 

506 

78 78 

12/94 

$147 

506 

6/95 

$148 

512 

Loans to Commercial Borrowers (Credit Risk Concentrated): These are loans with relatively large 

balances at risk to a single borrower. A single loan may represent a significant proportion of an 

institution's capital or income. Therefore, a relatively small number of defaults could impair an 

institution's capital or income. These Joans include commercial and industrial loans, multifamily 

mortgages, commercial real estate and construction loans and agricultural loans. 

Retail Loans (Credit Risk Diversified): These are loans that typically have relatively small balances 

spread among a larger number of borrowers. A number of defaults are likely but typically do not impair 

an institution's capital or income. These loans include consumer and credit card loans, 1-4 family 

residential mortgages and home equity loans. 

FDIC-Insured Savings Institutions 10 

FDIC Quarterly Banking Profile 

Second Quarter 1995 
TABLE 1-B. Selected Indicators, FDIC-Insured Savings Institutions* 

1995�* 1994** 1994 1993 1992 

Return on assets(%) ............................................... 0.73 0.62 0.66 0.70 0.65 

Return on equity (%) ............................................... 9.02 7.79 8.28 9.24 9.48 

Core cap Ital (leverage) ratio (%) ............................. 7.70 7.63 7.65 7.45 6.77 

Noncurrent assets plus 

other real estate owned to assets(%) ................... 1.26 1.77 1.38 2.10 3.07 

Net charge-offs to loans (%) .................................... 0.33 0.54 0.51 0.65 0.59 

Asset growth rate (%) .............................................. 1.82 -0.49 0.77 -2.85 -7.44 

Net interest margin (%) ........................................... 3.08 3.40 3.34 3.48 3.40 

Net operating income growth (%) ............................ 12.82 -10.61 3.75 11.71 NIM

Number of institutions .............................................. 2,081 2,216 2,152 2,262 2,390 

Percentage of unprofitable institutions .................... 5.33 6.72 6.92 5.84 7.57 

Number of problem institutions ................................ 64 95 71 146 276 

Assets of problem institutions (in billions) ............... $33 $71 $39 $92 $183 

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

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

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

(dollar figures in millions) Preliminary 

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 ........................ .. 

2nd Quarter 

1995 

2,081 

253,010 

$1,017,229 

607,215 

472,943 

62,551 

51,239 

20,483 

11,704 

38,627 

1,777 

9,708 

649,615 

7,473 

642,142 

289,365 

3,671 

6,387 

75,663 

1,017,229 

744,664 

175,234 

2,598 

11,513 

83,220 

7,839 

9,127 

6,591 

345 

1st Quarter 

1995 

2,118 

257,782 

$1,013,780 

609,052 

474,900 

62,000 

52,424 

19,728 

11,517 

37,653 

1,666 

9,688 

650,200 

7,618 

642,582 

285,829 

4,058 

6,374 

74,937 

1,013,780 

744,615 

174,240 

2,489 

10,667 

81,769 

8,134 

9,425 

7,053 

422 

Mortgage-backed securities.................................................... 216,531 213,951 

Earning assets......................................................................... 951,988 949,297 

FHLB Advances (TFR filers only)............................................ 79,371 83,537 

Unused loan commitments ......................................... -, .. ·-

··--.. , 79,397 73,257 

2nd Quarter 

1994 

2,216 

279,684 

$999,050 

588,462 

450,498 

63,746 

54,311 

19,907 

9,445 

38,117 

1,733 

10,904 

626,852 

8,517 

618,336 

291,523 

5,780 

5,737 

77,675 

999,050 

756,958 

148,395 

2,515 

11,225 

79,957 

8,748 

11,869 

8,812 

607 

210,361 

932,210 

79,256 

73,002 

Preliminary Preliminary 

1991 

0.08 

1.26 

5.54 

3.96 

0.65 

-11.61

2.76 

NIM

2,561 

18.35 

410

$291

163 

1990 

-0.37

·6.68

4.62

3.98 

0.61 

-11.79 

2.·27 

N/M 

2,815 

30.09 

480 

$298 

223 

%Change 

94:2-95:2 

-6.1 

-9.5 

1.8

3.2 

5.0 

-1.9 

-5.7 

2.9

23.9

1.3

2.5

-11.0

3.6 

-12.3 

3.9

-0.7

-36.5

11.3 

-2.6 

1.8 

-1.6 

18.1 

3.3

2.6

4.1 

-10.4 

-23.1

-25.2

-43.2

2.9

2.1 

0.2

8.8 

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

INCOME DATA 1995 1994 %Change 1995 1994 94:2-95:2 

Total interest income ............................................. 1

-- - $-3

_

5,6__20 ____ $3__1,8--0

_

4 _ __

 12. �0�--�$

-18-

,

-

2

-

19 ____ $

_

1 _

6,-081 -__ _ 1

_

3

-.3-

Total interest expense........................................... 21,214 16,170 31.2 11,022 8,224 34.0 

Net interest income ................................. ,........... 14,406 15,634 -7.9 7,198 7,857 -8.4 

Provision for loan losses....................................... 1,018 1,461 -30.3 520 723 -28.0

Total noninterest income....................................... 3,284 3,011 9.1 1,794 1,614 11.2 

Total noninterest expense..................................... 11,101 12,098 -8.2 5,531 6,067 -8.8 

Securities gains (losses)....................................... 12 40 -70.8 36 2 NIM

Applicable income taxes........................................ 1,962 1,897 3.4 1,057 883 19.7

Extraordinary gains, net ....................................... 16 (170) N/M (2) (11) NIM

Net income.......................................................... 3,638 3,060 18.9 1,917 1,789 7.2

Net charge-offs...................................................... 1,062 1,670 -36.4 579 896 -35.5

Cash dividends...................................................... 1,674 1,081 54.9 843 523 61.2 

Net operating income.......................................... 3,613 3,203 12.8 1,895 1,799 5.4 

'Excludes institutions in Resolution Trust Corporation conservatorshlp and one self-llquldatlng Institution. 

FDIC Quarterly Banking Profile 

Second Quarter 1995 11 

NIM - Not meaningful 

FDIC-Insured Savings Institutions 
TABLE 111-B. First Half 1995, FDIC-Insured Savings Institutions* 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

FIRST HALF Preliminary All than $100 to to than $5 North- South· I

Mid-

(The way it is . .. ) Institutions Million $1 Billion $5 Billion Billion east east Central west 

Number of institutions reporting ................ 2,081 944 976 126 35 767 318 534 157 

Total assets (in billions) ............................. $1,017.2 $48.2 $282.1 $267.0 $419.9 $334.6 $77.4 $167.6 $52.8 

Total deposits (in billions) .......................... 744.7 41.0 228.0 195.5 280.2 264.5 59.5 124.0 36.5 

Net income (In millions) ............................. 3,637.7 153.1 955.9 1,025.2 1,503.5 1,444.5 308.8 738.0 247.9 

% of unprofitable institutions ..................... 5.3 6.6 4.1 6.3 2.9 3.1 6.9 3.7 3.2 

% of institutions with earnings gains ......... 45.4 39.6 49.5 52.4 60.0 48.8 48.1 44.6 43.9 

Performance Ratios (annualized, %) 

Yield on earning assets ........................ 7.61 7.77 7.68 7.65 7.51 7.68 7.79 7.65 7.74 

Cost of funding earning assets .................. 4.53 4.19 4.24 4.47 4.80 4.04 4.60 4.58 4.81 

Net Interest margin .................................... 3.08 3.58 3.44 3.18 2.71 3.63 3.19 3.06 2.93 

Noninterest income to earning assets ....... 0.70 0.56 0.51 0.83 0.77 0.66 0.73 0.86 1.10 

Nonlnterest expense to earning assets ..... 2.37 2.89 2.63 2.53 2.03 2.60 2.47 2.37 2.14 

Net operating income to assets ................. 0.72 0.64 0.69 0.76 0.72 0.87 0.81 0.87 0.96 

Return on assets ....................................... 0.73 0.64 0.69 0.78 0.73 0.88 0.81 0.89 0.95 

Return on equity ........................................ 9.02 6.30 7.46 9.65 10.41 10.12 9.46 10.17 11.84 

Net charge-offs to loans and leases .......... 0.33 0.17 0.16 0.36 0.45 0.38 0.13 0.09 0.18 

Loan loss provision to net charge-offs ...... 95.90 102.30 151.20 87.72 86.82 86.93 86.75 205.45 238.80 

Condition Ratios(%) 

Loss allowance to: 

Loans and leases .................................... 1.15 0.82 1.08 1.31 1.14 1.42 0.93 0.80 0.79 

Noncurrent loans and leases .................. 81.88 74.12 89.54 86.55 75.64 72.55 82.54 132.95 121.32 

Noncurrent assets plus 

other real estate owned to assets ........... 1.26 1.02 1.11 1.45 1.27 1.66 0.99 0.50 0.59 

Noncurrent RE loans to RE loans ............. 1.41 1.08 1.19 1.53 1.52 1.97 1.11 0.56 0.64 

Equity capital ratio .................. .................. 8.18 10.41 9.43 8.23 7.05 8.84 8.76 8.91 8.16 

Core capital (leverage) ratio ...................... 7.70 10.24 9.17 7.73 6.39 8.47 8.31 8.47 7.51 

Gross real estate assets to gross assets .. 80.02 72.70 74.75 79.47 84.78 74.86 78.14 79.60 78.36 

Gross 1-4 family mortgages to gr. assets. 45.72 52.23 45.89 40.17 48.39 41.19 47.81 50.17 46.58 

Net loans and leases to deposits .............. 86.23 78.87 78.99 82.41 95.87 74.05 84.79 87.55 90.35 

Growth Rates (year-to-year,%) 

Assets ....................................................... 1.8 - 4 - - -0.8 -7.0 10.6 1.1 

Equity capital ............................................. 4.1 . . . . 6.1 -4.7 13.8 4.3 

Net interest income ....................... , ........... -7.9 . . . -4.1 -12.0 -1.0 -1.0 

Net income ................................................ 18.9 . - - . -0.1 -12.8 34.7 116.5 

Noncurrent assets plus 

other real estate owned ........................... -27.4 . . . - -26.7 -26.1 -7.5 -2.9 

Net charge-offs .......................................... -36.4 . - . -17.6 -38.4 -1.4 34.7 

Loan loss provision ................................... -30.3 - . . . -18.7 -19.1 57.4 125.6 

PRIOR FIRST HALVES 

(The way it was ... ) 

Number of institutions ....................... 1994 2,216 1,031 1,016 140 29 813 354 558 162 

....................................... 1992 2,489 1,154 1,133 172 30 882 434 614 185 

....................................... 1990 2,930 1,385 1,299 209 37 1,011 541 686 208 

Total assets (in billions) ..................... 1994 $999.0 $52.4 $295.1 $299.0 $352.5 $337.4 $83.1 $151.6 $52.2 

....................................... 1992 1,077.7 58.0 326.1 354.1 339.5 368.3 110.9 154.4 49.4 

....................................... 1990 1,316.9 67.4 383.3 436.0 430.2 427.2 163.1 177.2 61.3 

Return on assets (%) ........................ 1994 0.62 0.84 0.81 0.74 0.33 0.87 0.86 0.73 0.45 

....................................... 1992 0.60 0.79 0.70 0.65 0.42 0.42 0.73 0.83 0.96 

....................................... 1990 -0.14 0.08 -0.06 -0.31 -0.09 -0.43 -0.41 0.31 0.02 

Net charge-offs to loans & leases (%) 

....................................... 1994 0.54 0.11 0.21 0.53 0.86 0.46 0.21 0.11 0.14 

....................................... 1992 0.60 0.23 0.43 0.71 0.70 0.93 0.41 0.22 0.21 

....................................... 1990 0.48 0.21 0.43 0.62 0.45 0.63 0.49 0.26 0.57 

Noncurrent assets plus 

OREO to assets (%) ............... 1994 1.77 1.25 1.54 1.86 1.95 2.25 1.24 0.60 0 .. 62 

....................................... 1992 3.66 2.02 2.74 3.90 4.56 4.56 2.85 1.31 1.38 

....................................... 1990 3.43 2.28 3.17 4.40 2.88 3.78 3.43 1.38 2.37 

Equity capital ratio (%) ...................... 1994 8.00 9.68 8.90 7.93 7.06 8.26 8.54 8.66 7.91 

....................................... 1992 6.70 8.08 7.19 6.69 5.99 6.72 6.75 7.35 6.27 

....................................... 1990 5.38 7.04 6.37 5.01 4.60 6.48 4.78 6.02 3.38 

*Excludes inst1tullons in Resolution Trust Corporation conservatorsh1p and one self-l1qu1dat1ng 1nst1tut1on. 

REGIONS: Northeast-Comecticut, Delawarf!, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Puerto Rico, Rhode Island, 

Vermont, U.S. Virgin Islands 

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

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

Midwes/ - Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota 

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

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

Southwest 

138 

$74.1 

46.2 

302.0 

3.6 

38.4 

7.64 

5.04 

2.60 

1.02 

2.25 

0.82 

0.84 

11.90 

0.18 

168.74 

1.00 

86.63 

1.07 

1.16 

7.13 

6.74 

80.47 

39.16 

94.33 

32.7 

27.8 

16.6 

-0.9 

-11.5 

7.2 

112.6 

143 

160 

219 

$55.8 

61.2 

84.5 

1.09 

1.44 

-0.59 

0.27 

0.31 

1.13 

1.61 

5.04 

14.09 

7.40 

5.83 

2.96 

West 

167 

$310.7 

214.0 

596.5 

21.0 

34.1 

7.44 

4.84 

2.60 

0.51 

2.17 

0.39 

0.39 

5.48 

0.51 

80.29 

1.22 

79.19 

1.46 

1.56 

7.19 

6.56 

86.46 

49.12 

98.48 

-2.5 

-5.2 

-20.0 

103.2 

-34.3 

-48.7 

-51.7 

186 

214 

265 

$318.8 

333.5 

403.6 

0.19 

0.45 

0.14 

0.94 

0.56 

0.34 

2.17 

4.09 

1.90 

7.39 

6.57 

4.98 

FDIC-Insured Savings Institutions 12 

FDIC Quarterly Banking Profile 

Second Quarter 1995 
1.l

TABLE IV-8. Second Quarter 1995, FDIC-Insured Savings Institutions* 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

SECOND QUARTER Preliminary All than $100 to to than $5 North- South- I

Mid- South-

(The way it is ... ) Institutions Million $1 Billion $5 Billion Billion east east Central west west West 

Number of institutions reporting ................ 2,081 944 976 126 35 767 318 534 157 138 167 

Total assets (in billions) ............................. $1,017.2 $48.2 $282.1 $267.0 $419.9 $334.6 $77.4 $167.6 $52.8 $74.1 $310.7 

Total deposits (in billions) .......................... 744.7 41.0 228.0 195.5 280.2 264.5 59.5 124.0 36.5 46.2 214.0 

Net Income (in millions) ............................. 1,917 68 533 546 770 719 151 401 118 165 363 

% of unprofitable institutions ............•........ 5.9 7.6 4.5 4.8 0.0 4.6 7.5 4.1 2.5 0.7 21.6 

% of institutions with earnings gains ......... 45.7 39.7 49.0 61.9 60.0 48.2 47.5 42.9 46.5 41.3 43.1 

Performance Ratios (annualized, %} 

Yield on earning assets ............................. 7.71 7.88 7.78 7.75 7.62 7.77 7.87 7.76 7.75 7.78 7.57 

Cost of funding earning assets .................. 4.67 4.38 4.39 4.60 4.93 4.19 4.74 4.73 4.89 5.16 4.97 

Net interest margin .................................... 3.05 3.50 3.40 3.15 2.69 3.58 3.14 3.02 2.86 2.62 2.60 

Noninterest income to earning assets ....... 0.76 0.53 0.65 0.89 0.78 0.68 0.74 1.06 0.93 1.11 0.58 

Nonlnterest expense to earning assets .... 2.34 2.89 2.63 2.49 1.99 2.60 2.49 2.32 2.11 2.26 2.10 

Net operating income to assets ................. 0.75 0.56 0.76 0.81 0.73 0.85 0.79 0.96 0.90 0.89 0.47 

Return on assets ....................................... 0.76 0.57 0.76 0.83 0.74 0.87 0.79 0.96 0.90 0.91 0.47 

Return on equity ........................................ 9.36 5.51 8.18 10.10 10.51 9.89 9.11 10.90 10.93 12.83 6.57 

Net charge-offs to loans and leases .......... 0.36 0.27 0.17 0.39 0.47 0.40 0.19 0.09 0.11 0.19 0.57 

Loan loss provision to net charge-offs ...... 89.95 54.38 144.21 83.83 82.09 85.33 67.70 262.68 215.11 163.67 71.99 

Growth Rates (year-to-year,%) 

Net interest income ................................... -8.4 - - - -5.8 -13.7 -2.0 -3.9 19.8 -18.8 

Net income ................................................ 7.2 - - - -0.5 -19.8 15.8 N/M 1.5 -0.3 

Net charge-offs .......................................... -35.5 - - - - -2.7 -4.7 4.4 -1.7 52.7 -51.1 

Loan loss provision ................................... -28.0 . . -18.1 1.3 71.9 1.4 150.8 -49.3 

PRIOR SECOND QUARTERS 

(The way it was ... ) 

Return on assets (%) ........................ 1994 0.72 0.78 0.81 0.65 0.70 0.86 0.92 0.92 0.03 1.16 0.46 

....................................... 1992 0.55 0.80 0.71 0.61 0.30 0.38 0.73 0.81 1.11 1.28 0.34 

....................................... 1990 -0.16 0.08 -0.19 -0.32 0.00 -0.35 -0.38 0.30 -0.15 -0.73 0.06 

Net charge-offs to loans&leases (%) 

....................................... 1994 0.58 0.14 0.23 0.44 1.02 0.41 0.19 0.10 0.12 0.21 1.11 

....................................... 1992 0.63 0.27 0.49 0.64 0.82 0.96 0.37 0.23 0.17 0.31 0.65 

....................................... 1990 0.56 0.27 0.52 0.59 0.62 0.80 0.52 0.20 0.38 1.02 0.45 

*Excludes mst1tut1ons 1n Resolution Trust Corporation conservatorsh1p and one self-l1qu1datmg mst1tut1on. NIM-Not meaningful 

U.S. Treasury Yield Curve 

Yield(%) 

9 

8 

7 

6 

5 

4 

3 

6/30/94 

9/30/94 

12/31/94 

3/31/95 

6/30/95 

FDIC Quarterly Banking Profile 

Second Quarter 1995 

- .

- . -

.

:

.

-··

3/31/95 

··········-··-······· ---------... ··

·

··········

-

. 

_

_ ,..... . - .

- . � .

. - -

•• ,

········· • / , 

,

-

. 

-; 6/30/95 

6/30/94 

3-Month 6-Month 1 Year 2 Year 3 Year 5 Year 7 Year 10 Year 30 Year 

4.15 4.65 5.51 6.19 6.52 6.97 7.18 7.34 7.63 

4.67 5.22 5.96 6.62 6.92 7.28 7.46 7.62 7.82 

5.53 6.22 7.20 7.69 7.80 7.83 7.84 7.84 7.89 

5.70 5.85 6.49 6.80 6.92 7.08 7.17 7.20 7.44 

5.60 5.59 5.65 5.79 5.88 5.98 6.12 6.21 6.63 

13 FDIC-Insured Savings Institutions 
TABLE V-8. Loan Performance, FDIC-Insured Savings Institutions* 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

June 30, 1995 All than $100 to to than $5 North- South- I

Mid- SouthInstitutions Million $1 Billion $5 BIiiion Billion east east Central west west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate .............................. 1.15 1.93 1.17 1.04 1.11 1.37 1.18 0.89 1.16 1.33 1.06 

Construction, development and land ..................... 1.24 1.78 1.16 1.46 0.83 1.72 1.07 1.24 1.14 0.60 1.38 

Commercial real estate .......•................................. 1.21 1.73 1.30 1.39 0.82 1.65 1.18 1.11 0.82 1.07 0.66 

Multifamily residential real estate .......................... 0.81 1.66 0.89 0.66 0.84 0.99 0.95 0.63 1.55 1.51 0.67 

1-4 Family residential. ...................................•....... 1.19 1.97 1.18 1.04 1.18 1.36 1.20 0.88 1.17 1.41 1.17 

Commercial and industrial loans ............................. 1.28 2.05 1.97 1.14 0.50 1.36 1.92 1.28 1.58 1.92 0.30 

Loans to individuals ................................................. 1.73 2.29 1.61 1.79 1.69 2.03 1.68 1.73 2.17 0.91 1.63 

Percent of Loans Noncurrent** 

All real estate loans ..•.............................................. 1.41 1.08 1.19 1.53 1.52 1.97 1.11 0.56 0.64 1.16 1.56 

Construction, development and land ..................... 1.64 1.33 1.51 2.13 1.35 3.90 1.01 0.86 0.35 0.64 1.87 

Commercial real estate ......................................... 3.25 1.76 2.61 4.61 2.82 4.60 2.24 1.28 2.96 1.35 2.83 

Multifamily residential real estate .......................... 1.77 1.50 2.06 2.01 1.53 2.74 2.39 1.12 1.17 1.28 1.54 

1-4 Family residential.. .......................•..........•....... 1.15 0.98 0.90 0.98 1.42 1.43 0.94 0.45 0.44 1.17 1.44 

Commercial and industrial loans ............................. 2.20 2.33 2.11 2.48 1.89 2.70 2.06 1.56 1.30 2.34 1.18 

Loans to Individuals .................•............................•.. 0.78 0.96 0.75 0.68 0.85 1.00 0.67 0.89 0.55 0.48 0.66 

Percent of Loans Charged-off 

(net, annualized) 

All real estate loans .•.......•....................................... 0.28 0.15 0.13 0.28 0.40 0.32 0.10 0.03 0.07 0.09 0.48 

Construction, development and land ..................... 0.35 0.09 0.23 0.79 0.03 1.05 0.14 0.01 0.00 0.10 0.43 

Commercial real estate ......................................... 0.84 1.00 0.31 1.04 1.22 1.01 0.37 0.15 0.86 0.09 1.19 

Multifamily residential real estate .......................... 0.62 0.84 0.48 0.46 0.76 0.55 0.62 0.05 0.08 0.02 0.85 

1-4 Family residential. ........................................... 0.17 0.04 0.07 0.11 0.29 0.16 0.05 0.03 0.00 0.10 0.33 

Commercial and industrial loans ......................... : ... 0.55 0.86 0.40 0.84 0.27 0.89 0.00 -0.08 0.23 0.07 0.37 

Loans to individuals ................................................. 0.95 0.33 0.40 1.13 1.24 0.92 0.55 0.89 1.02 0.71 1.48 

Loans Outstanding (in billions) 

All real estate loans ................................................. $607.2 $30.7 $171.5 $148.8 $256.2 $179.8 $47.9 $102.6 $29.5 $40.2 $207.2 

Construction, development and land ..................... 20.5 1.6 9.8 5.7 3.4 4.1 4.2 4.4 1.1 2.7 4.0 

Commercial real estate ...........................•............. 51.2 2.4 18.0 15.8 15.0 21.6 4.3 5.7 2.1 3.8 13.9 

Multifamily residential real estate .......•.................. 62.6 1.0 11.7 18.1 31.7 14.5 1.4 7.1 1.4 3.5 34.6 

1-4 Family residential ............................................ 472.9 25.7 132.1 109.1 206.1 139.6 38.0 85.4 24.9 30.2 154.8 

Commercial and industrial loans ...........•................. 11.7 0.5 3.7 4.4 3.0 6.5 1.1 1.3 0.6 0.5 1.7 

Loans to individuals .............................•................... 38.6 1.9 10.2 11.7 14.9 12.7 3.6 7.1 3.6 5.7 6.0 

Memoranda: 

Other Real Estate Owned (in millions)*** 

All other real estate owned ...................................... $3,671 $131 $927 $1,392 $1,221 $1,676 $190 $177 $97 $285 $1,246 

Construction, development and land ..................... 881.8 14.6 224.1 540.1 102.9 571.2 60.9 17.6 11.6 73.9 146.4 

Commercial real estate ......................................... 1,031.4 67.8 293.0 403.8 266.8 527.9 59.9 75.9 64.2 48.7 254.9 

Multifamily residential real estate .......................... 688.2 6.9 158.7 289.3 233.3 201.4 6.0 19.3 10.6 110.1 340.9 

1-4 Family residential. ......•...................•................ 1,524.1 61.6 347.0 331.4 784.1 516.5 85.0 78.3 33.0 90.6 720.7 

Troubled Real Estate Asset Rates**** 

(% of total RE assets) 

All real estate loans ................................................. 2.00 1.50 1.72 2.45 1.99 2.88 1.50 0.73 0.97 1.86 2.15 

Construction, development and land .......••.•.......... 5.70 2.21 3.72 10.57 4.28 15.62 2.43 1.25 1.37 3.31 5.35 

Commercial real estate ......................................... 5.16 4.46 4.17 6.99 4.52 6.88 3.58 2.58 5.88 2.61 4.58 

Multifamily residential real estate .......................... 2.84 2.15 3.38 3.55 2.25 4.07 2.81 1.39 1.93 4.26 2.50 

1-4 Family residential... ......................................... 1.47 1.22 1.16 1.28 1.80 1.79 1.16 0.54 0.57 1.47 1.90 

*Excludes rnstltutrons in Resolution Trust Corporation conservatorshlp and one sell-hqurdatrng rnstrtutlon. 

**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" het 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. 

Insurance Fund Reserve Ratios 

Percent of Insured Deposits 

Target Ratio 1.22 1 2BB 

1.25 -··-·-·-·-·-·----·-·-·--.. ---··-·----·-·-·-·· 1.

1

5 -·---·--·-··-

0.70 0.69 

-0.36 

12/89 12/90 12/91 12/92 12/93 12/94 3/95 6/95 

FDIC-Insured Savings Institutions 

Fund Balance and Insured Deposits 

($Millions) 

BIF 12/89 12/90 12/91 12/92 12/93 12/94 3/95 6/95 

Fund Balance 13,210 4,045 -7,028 -101 13,122 21,848 23,185 24,677 

Insured Deposits 1,873,837 1,929,612 1,957,722 1,945,623 1,906,885 1,895,182 1,899,0921,915,278 

SAIF 

Fund Balance 

Insured Deposits 

14 

0 18 101 

882,920 830,028 776,351 

279 1,157 1,937 2,216 2,587 

729,458 695,574 693,432 703,613 708,560 

1995 Fund balances are unaudited 

FDIC Quarterly Banking Profile 

Second Quarter 1995 
ALL FDIC-INSURED INSTITUTIONS 

• BIF Achieved Recapitalization In May; Refunds And Rate Cuts Set

• SAIF Assumes Resolution Responsibility From The RTC

• BIF Members Increase Their Share Of SAIF Deposits To 27.8 Percent ($203

Billion)

The Bank Insurance Fund (BIF) surpassed its Congressionally mandated reserve ratio of 1.25 percent of 

insured deposits during the month of May, closing the 

second quarter at 1 .288 percent. The new assessment 

rate schedule for the BIF, which substantially lowers 

rates for most banks, thus became effective June 1, 

enabling the FDIC to refund excess premiums already 

paid by BIF-insured institutions, plus accrued interest, 

for the four-month period June 1 to September 30. 

BIF-insured institutions will be credited with the refund 

September 15 and will pay the new, lower rates for the 

fourth quarter. The average BIF assessment rate is 

now 4.4 basis points (0.044 percent) of assessable 

deposits, down from 23.2 basis points, and the decrease is expected to result in annual savings to BIFinsured institutions of $4.4 billion. 

In contrast, the reserve ratio of the Savings Association 

Insurance Fund {SAIF) was just 0.365 percent of insured deposits on June 30, and the assessment rate 

schedule for SAIF members remains unchanged, with 

an average rate of 23.7 basis points. Growth of the 

SAIF is hindered by the diversion of nearly half of its 

annual assessment revenue to pay interest on bonds 

issued by the Financing Corporation (FICO) to fund the 

resolution of thrift failures in the 1980s. The undercapitalized condition of the SAIF takes on added importance now that the SAi F has assumed responsibility 

from the Resolution Trust Corporation {RTC) for thrifts 

that fail after July 1, 1995. 

The total deposits of the FDIC's 12,249 insured institutions 1 increased $45 billion (1.2 percent) in the second quarter, as the growth in large, uninsured domestic 

deposits exceeded the growth in insured deposits. 

Consequently, reliance on insured deposits declined 

slightly, continuing the slow downward trend of recent 

years. As of June 30, 47.6 percent of the assets of BIF 

members were funded by insured deposits, compared· 

to 67.7 percent for SAIF members. The BIF and SAIF 

assessment bases2 each grew during the second 

quarter. This was the third consecutive quarterly increase for the SAIF assessment base, indicating a 

possible reversal of a long-term downward trend that 

began in 1989. However, the premium differential 

1This excludes insured branches of foreign banks and one self-liquidating thrift institution. The last ATC conservatorship was resolved 

during the second quarter. 

FDIC Quarterly Banking Profile 

Second Quarter 1995 15 

between the BIF and the SAIF may limit future SAIF 

deposit growth. 

During the second quarter of 1995, three FDIC-insured 

institutions failed. These included one small BIF-member commercial bank (total assets $9 million) and two 

SAIF-member thrifts ($456 million), the first thrift failures of the year. For the first half of 1995, the six total 

failures included four BIF-member commercial banks 

($526 million) and the two SAIF-member thrifts ($456 

million). 

"Dakar" deposits. A member of one insurance fund 

can acquire deposits insured by the other fund, but this 

portion of the acquiring institution's deposits retains 

coverage under the other fund. As of June 30, 764 BIF 

members held $203 billion in SAIF-insured deposits, 

up $7 billion (3.6 percent) from March 31 and $49 

billion (31.7 percent) from June 1994. BIF members 

now hold 27.8 percent of the SAIF assessment base, 

compared to 27.0 percent on March 31 and 21.7 

percent a year ago. On June 30, 62 SAIF-member 

institutions held $10 billion in BIF-assessable deposits, 

or 0.4 percent of the total BIF assessment base. 

"Sasser" institutions. Since 1989, institutions have 

been permitted to switch charter type and primary 

federal supervisor without changing insurance fund 

membership. On June 30, 317 SAIF-member institutions were subject to supervision by one of the three 

federal banking agencies. These institutions, most of 

which are state-chartered savings banks supervised 

by the FDIC, held SAIF-assessable deposits of $54.5 

billion, or 7.5 percent of the SAIF assessment base. 

FICO bonds. FICO has an annual first claim on up to 

$793 million of SAIF assessment revenue through the 

year 2019 in order to pay interest on its bonds. However, SAIF assessments paid by BIF-member Oakars 

and SAIF-member Sasse rs are not available for FICO. 

The aggregate share of the SAIF assessment base 

held by these institutions increased to 35.3 percent on 

June 30, from 34.2 percent on March 31 and 28.0 

percent in June 1994. Continued growth of the OakarSasser share of the assessment base would eventually jeopardize the SAIF's ability to fund FICO interest 

payments. 

2An institution's assessment base is measured by its domestic deposits 

(both insured and uninsured), less a small adjustment for "float'' associated with its transaction accounts. 

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

June 30, 1995* 

(dollar figures in m/11/ons) Number of Total Domestic Estimated Insured Deposits 

Institutions Assets Deposits'' BIF SAIF Total 

Private-Sector Commercial and Savings Institutions 

FDIC-Insured Commercial Banks ......................................... 10,168 4,170,706 2,467,492 1,748,617 165,185 1,913,802 

BIF-member ...................................................................... 10,090 4,147,085 2,450,090 1,747,391 152,338 1,899,729 

SAIF-member ................................................................. ,. 78 23,621 17,402 1,226 12,847 14,073 

FDIC-Insured Savings Institutions ........................................ 2,081 1,017,229 744,664 164,802 543,375 708,177 

OTS-Supervised Savings Institutions ..................•...•••...... 1,477 777,657 556,088 28,958 499,613 528,571 

BIF-member ................................................................... 21 91,093 66,932 19,933 44,583 64,515 

SAIF-member' ............................................................... 1,456 686,564 489,157 9,025 455,031 464,056 

FDIC-Supervised State Savings Banks ............................ 604 239,572 188,575 135,844 43,762 179,606 

BIF-member ................................................................... 365 188,214 149,221 135,749 6,166 141,915 

SAIF-member ................................................................ 239 51,358 39,355 95 37,596 37,691 

Total Private-Sector Commercial and 

Savings Institutions ........................................................ 12,249 5,187,935 3,212,156 1,913,419 708,560 2,621,979 

BIF-member .......................................................................... 10,476 4,426,392 2,666,243 1,903,073 203,086 2,106,160 

SAIF-member ....................................................................... 1,773 761,542 545,913 10,346 505,474 515,820 

Other FDIC-Insured Institutions 

RTC Conservatorships ......................................................... 0 0 0 0 0 0 

U.S. Branches of Foreign Banks ......................................... 41 9,716 3,160 1,859 0 1,859 

Total FDIC-Insured Institutions ............................................ 12,290 5,197,651 3,215,316 1,915,278 708,560 2,623,838 

'Excludes one self-liqu1dat1ng savings institution with less than $1 m'illion in SAIF-insured deposits. 

"Excludes $439.6 billion in foreign office deposits. 

($ Billions) 

Sasser Institutions 

$ Billions 

1,000 

328 

0 

12/89 

0.0 

Oakar Deposits (BIF-members) 2.1 

RTC Conservatorship 89.7 

All Other Institutions 858.5 

Total 950.3 

All FDIC-Insured Institutions 

12/90 

2.8 

34.0 

67.8 

773.1 

877.7 

SAIF Domestic Deposits 

December 31, 1989 - June 30, 1995 

RTC Conservatorships 

12/91 12/92 12/93 

12.0 28.8 43.5 

70.4 80.6 139.9 

37.2 31.5 17.9 

700.6 622.8 527.7 

820.2 763.7 729.0 

16 

Sasser Institutions 

e•� M ,w. «; @� :!: :::::;:::;. 

Oakar Deposits 

(BIF-members) 

12/94 3/95 

52.9 53.3 

181.7 196.1 

1.2 0.1 

485.7 484.6 

721.5 734.1 

6/95 

55.4 

203.1 

0.0 

480.1 

738.6 

FDIC Quarterly Banking Profile 

Second Quarter 1995 
TABLE 1-C. Selected Indicators, All FDIC-Insured Institutions* 

(dollar figures in millions) 1995** 1994** 1994 1993 1992 1991 

Number of institutions reporting ...................................... 12,249 12,932 12,602 13,220 13,852 14,482 

Total assets ..................................................................... $5,187,935 $4,891,617 $5,019,014 $4,707,057 $4,535,889 $4,543,642 

Total deposits .................................................................. 3,651,707 3,522,895 3,611,486 3,528,478 3,527,044 3,594,303 

Number of problem institutions ........................................ 254 433 318 572 1,063 1,426 

Assets of problem institutions (in billions) ........................ $56 $113 $73 $334 $592 $819 

Number of failed/assisted institutions .............................. 6 6 15 50 181 271 

Assets of failed/assisted institutions in billions) .............. $0.98 $0.65 $1.57 $9.67 $88 $142 

.. As of June 30. 

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

(dollar figures in millions) Preliminary 

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

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

CONDITION DATA 

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

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

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

Home equity loans ..................................................... .. 

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

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

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

Other real estate loans ................................................ .. 

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

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

Credit cards & related plans ........................................... . 

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 capttal ....................................................... . 

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 ........................................................................ . 

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

Including RTC conservatorships and /BA 's: 

Estimated BIF-insured deposits .......................................... .. 

Domestic depostts (reflects Oakar adjustments) .............. . 

BIF balance (unaudited figures) ...................................... .. 

BIF coverage ratio(%)*** ................................................ .. 

Estimated SAIF-insured deposits ........................................ . 

Domestic deposits (reflects Oakar adjustments) ............. .. 

SAIF balance (unaudited figures) .................................... .. 

SAIF coverage ratio(%)*** ............................................... . 

Estimated FDIC-insured deposits, BIF and SAIF ................ . 

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 

First Half 

1995 

$183,627 

93,161 

90,466 

6,601 

42,630 

85,608 

319 

14,449 

40 

26,798 

2nd Quarter 

1995 

12,249 

1,732,395 

$5,187,935 

1,657,171 

1,080,395 

96,811 

96,061 

343,033 

86,983 

50,699 

651,789 

541,733 

200,302 

313,003 

15,920 

3,147,776 

60,404 

3,087,372 

1,095,249 

11,022 

33,263 

961,029 

5,187,935 

3,651,707 

823,166 

44,799 

250,208 

418,055 

36,589 

40,795 

12,068 

923 

536,158 

4,554,591 

2,066,851 

1,915,278 

2,476,595 

24,677 

1.288 

708,560 

738,720 

2,587 

0.365 

2,623,838 

First Half 

1994 

$156,634 

69,339 

87,295 

7,009 

40,098 

82,238 

784 

13,434 

(206) 

25,290 

1st Quarter 2nd Quarter 

1995 1994 

12,359 12,932 

1,731,907 1,775,361 

$5,129,881 $4,891,617 

1,629,139 1,532,470 

1,058,088 980,272 

93,522 90,826 

94,705 94,283 

341,187 329,331 

85,419 82,507 

49,740 46,076 

633,421 574,168 

527,547 476,607 

192,465 168,069 

299,552 281,079 

15,837 17,035 

3,073,821 2,847,288 

60,400 60,959 

3,013,422 2,786,329 

1,099,171 1,140,491 

11,991 19,048 

32,648 26,001 

972,650 919,747 

5,129,881 4,891,617 

3,607,160 3,522,895 

790,697 704,867 

43,309 39,945 

282,761 238,984 

405,953 384,926 

38,708 34,415 

41,744 47,790 

12,548 15,028 

1,008 1,177 

534,421 545,349 

4,472,707 4,269,604 

1,965,032 1,655,874 

1,899,092 1,887,846 

2,434,049 2,437,986 

23,185 17,490 

1.22 0.93 

704,613 690,860 

734,053 719,039 

2,216 1,662 

0.31 0.24 

2,603,705 2,578,706 

%Change 

17.2 

34.4 

3.6 

-5.8 

6.3 

4.1 

-59.3 

7.6 

N/M 

6.0 

Preliminary 

2nd Qtr 

1995 

$93,817 

48,256 

45,561 

3,420 

21,962 

42,994 

386 

7,558 

(13) 

13,924 

2ndQtr 

1994 

$80,331 

35,983 

44,349 

3,549 

20,146 

41,647 

186 

6,516 

(9) 

12,959 

% Change 

94:2-95:2 

-5.3 

-2.4 

6.1 

8.1 

10.2 

6.6 

1.9 

4.2 

5.4 

10.0 

13.5 

13.7 

19.2 

11.4 

-6.6 

10.6 

-0.9

10.8

-4.0

-42.1 

27.9 

4.5 

6.1 

3.7 

16.8 

12.2 

4.7 

8.6 

6.3 

-14.6 

-19.7 

-21.6 

-1.7 

6.7 

24.8 

1.5 

1.6 

41.1 

39.1 

2.6 

2.7 

55.7 

51.8 

1.8 

%Change 

94:2-95:2 

16.8 

34.1 

2.7 

-3.7

9.0

3.2

106.9 

16.0 

N/M 

7.4 

'Excludes institutions 1n RTC conservatorsh1p, one self-llqu1dating savings institution, insured branches of foreign banks (IBA's), unless indicated otherwise. 

'"Coverage ratios reflect the insurance fund balance as a percentage of estimated insured deposits. N/M-Not meaningful 

FDIC Quarterly Banking Profile 

Second Quarter 1995 17 All FDIC-Insured Institutions 
TABLE 1-D. Selected Indicators, BIF-Member Depositor Institutions* 

(dollar figures in millions) f--

1995** 1994** 1994 1993 1992 1991 --- ---- --- -- --'--'-=-------'-__:_:_.:._ 

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

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

Total deposits ................................................................. . 

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

Assets of problem institutions (in billions) ...................... .. 

Number of failed/assisted institutions ............................. . 

Assets of failed/assisted institutions (in billions) ............. . 

**As of June 30. 

10,476 

$4,426,392 

3,105,793 

200 

$27 

4 

$0.53 

11,039 

$4,135,233 

2,959,233 

360 

$54 

5 

$0.56 

10,758 

$4,246,717 

3,061,339 

264 

$42 

13 

$1.43 

11,291 

$3,949,700 

2,951,985 

472 

$269 

41 

$3.54 

11,813 

$3,711,623 

2,873,179 

856 

$464 

122 

$44 

12,305 

$3,660,455 

2,881,769 

1,089 

$610 

127 

$63 

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

(dollar figures in millions) Preliminary 

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

Commercial banks ............................................................... .. 

Savings institutions ............................................................... . 

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

CONDITION DATA 

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

Loans secured by real estate, total. ..................................... .. 

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

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

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

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

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

Reserve for losses .............................................................. . 

Total deposits ....................................................................... . 

Estimated insured deposits .................................................. . 

BIF-insured deposits (estimated) ........................................ . 

SAIF-insured deposits (estimated) ..................................... . 

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

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

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

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions: 

Well capitalized .................................................................... .. 

Adequately capitalized .......................................................... . 

Undercapitalized ................................................................... . 

Significantly undercapitalized ............................................... . 

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

Total assets: 

Well capitalized .................................................................... .. 

Adequately capitalized .......................................................... . 

Undercapitalized ................................................................... . 

Significantly undercapitalized ............................................. .. 

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

INCOME DATA 

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

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

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

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

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

*Excludes insured branches of foreign banks.

BIF-Member Depository Institutions 

Preliminary 

First Half 

1995 

$80,151 

5,845 

24,207 

5,380 

329 

2nd Quarter 

1995 

10,476 

10,090 

386 

1,539,510 

$4,426,392 

1,188,388 

705,846 

53,563 

309,678 

68,693 

644,436 

55,342 

3,105,793 

2,106,160 

1,903,073 

203,086 

34,832 

8,455 

356,985 

10,309 

143 

16 

5 

3 

$4,308,605 

115,270 

1,731 

351 

434 

First Half 

1994 

$75,900 

5,934 

23,318 

6,139 

422 

18 

1st Quarter 

1995 

10,553 

10,166 

387 

1,534,176 

$4,368,839 

1,163,479 

686,680 

52,202 

307,156 

67,792 

626,097 

55,249 

3,059,152 

2,083,270 

1,887,214 

196,056 

35,623 

9,138 

346,008 

10,410 

118 

12 

7 

6 

$4,251,221 

115,091 

1,277 

829 

422 

2nd Quarter 

1994 

11,039 

10,643 

396 

1,556,622 

$4,135,233 

1,084,368 

630,681 

49,565 

293,522 

64,607 

568,789 

55,049 

2,959,233 

2,032,937 

1,878,698 

154,238 

39,939 

15,042 

325,264 

10,840 

153 

20 

15 

11 

$4,012,608 

117,529 

1,985 

1,816 

1,295 

Preliminary 

% Change 

94:2-95:2 

-5.1

-5.2

-2.5

-1.1

7.0 

9.6 

11.9 

8.1 

5.5 

6.3 

13.3 

0.5 

5.0 

3.6 

1.3 

31.7 

-12.8 

-43.8

9.8

-4.9

-6.5

-20.0

-66.7

-72.7

7.4 

-1.9

-12.8 

-80.7 

-66.5

2nd Quarter 2nd Quarter %Change 

%Change 1995 

5.6 $40,400 

-1.5 3,035 

3.8 12,531 

-12.4 2,938 

-22.0 393 

1994 94:2-95:2 

$38,627 4.6 

3,001 1.2 

11,737 6.8 

3,308 -11.2 

481 -18.3

FDIC Quarterly Banking Profile 

Second Quarter 1995 
TABLE 1-E. Selected Indicators, SAIF-Member Depository Institutions* 

(dollar figures in millions) ,___ __ 19_9_5_ _ _** 19_9_4_*___ * _ 1 _9_ _ _94 ___ 1993 _ __ _ 1992 

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

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

Total deposits ................................................................. . 

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

Assets of problem institutions (in billions) ...................... .. 

Number of failed/assisted institutions ............................ .. 

Assets of failed/assisted institutions (in billions) ............. . 

**As of June 30. 

1,773 

$761,542 

545,913 

54 

$30 

2 

$0.45 

1,893 

$756,384 

563,662 

73 

$59 

1 

$0.09 

1,844 

$772,297 

550,147 

54 

$31 

2 

$0.14 

1,929 2,039 

$757,357 $824,266 

576,493 653,865 

100 207 

$65 $128 

9 59 

$6 $44 

1991 

2,177 

$883,187 

712,533 

337 

$209 

144 

$79 

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

(dollar figures in millions) Preliminary 

2nd Quarter 1st Quarter 2nd Quarter % Change 

1995 1995 1994 94:2-95:2 

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

Commercial banks ................................................................ . 

Savings institutions ............................................................... . 

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

CONDITION DATA 

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

Loans secured by real estate, total ....................................... . 

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

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

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

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

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

Reserve for losses .............................................................. . 

Total deposits ....................................................................... . 

Estimated insured deposits .................................................. . 

BIF-insured deposits (estimated) ........................................ . 

SAIF-insured deposits (estimated) ..................................... . 

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

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

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

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions: 

Well capitalized ..................................................................... . 

Adequately capitalized ......................................................... . 

Undercapitalized ................................................................... . 

Significantly undercapitalized ............................................... . 

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

Total assets: 

1,773 

78 

1,695 

192,885 

$761,542 

468,783 

374,548 

42,498 

33,355 

18,289 

7,354 

5,062 

545,913 

515,820 

10,346 

505,474 

5,963 

2,567 

61,070 

1,704 

63 

3 

2 

1 

1,806 

75 

1,731 

197,731 

$761,042 

465,660 

371,408 

42,503 

34,030 

17,627 

7,323 

5,151 

548,008 

518,650 

10,093 

508,557 

6,121 

2,853 

59,945 

1,720 

75 

6 

1 

4 

1,893 

73 

1,820 

218,739 

$756,384 

448,102 

349,591 

44,718 

35,809 

17,900 

5,378 

5,910 

563,662 

535,658 

6,812 

528,845 

7,851 

4,005 

59,662 

1,799 

83 

5 

5 

1 

Well capitalized .................................................................... .. 727,327 $696,004 

59,990 

1,708 

293 

3,046 

$669,461 

Adequately capitalized ......................................................... .. 

Undercapitalized ................................................................... . 

Significantly undercapitalized ............................................. .. 

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

Preliminary 

32,822 

756 

383 

253 

First Half First Half 

INCOME DATA 1995 1994 %Change 

Net interest income............................................... $10,315 $11,394 -9.5

Provision for loan losses....................................... 756 1,075 -29.6

Net income............................................................ 2,591 1,973 31.3 

Net charge-offs...................................................... 713 1,267 -43. 7

Number of institutions reporting net losses........... 107 128 -16.4 

Preliminary 

2nd Quarter 

1995 

$5,161 

384 

1,393 

397 

111 

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

78,690 

1,649 

2,526 

4,058 

2nd Quarter 

1994 

$5,721 

549 

1,223 

722 

139 

-6.3 

6.8 

-6.9

-11.8

0.7 

4.6 

7.1 

-5.0

-6.9

2.2 

36.7 

-14.3

-3.2 

-3.7

51.9 

-4.4 

-24.1

-35.9

2.4 

-5.3

-24.1

-40.0

-60.0

0.0

8.6 

-58.3

-54.1 

-84.8 

-93.8 

%Change 

94:2-95:2 

-9.8

-30.0

14.0

-45.0

-20.1

FDIC Quarterly Banking Profile 

Second Quarter 1995 19 SAIF-Member Depository Institutions 
Number of FDIC- Insured 11Problem11 Institutions 

1990 - 1995 

Number of Institutions 

2,000 - Com mercial Banks

Savings Institutions

1,500 

1,000 

500 

0 

1, 492 1,426 

926 

789 

572 501 433 

286 254 

12/90 12/91 12/92 3/93 6/93 9/93 12/93 3/94 6/94 9/94 12/94 3/95 6/95 

Savings Institutions 480 410 276 255 209 169 146 118 95 84 71 71 64 

Commercial Banks 1,012 1,016 787 671 580 496 426 383 338 293 247 215 190 

Assets of FDIC - Insured 11Problem11 Institutions 

1990 - 1995 

$ Billions 

1,000 �-- -------- --- ---- -

-- -

C

-

o

_

m

_

m

_

e

_

rc

-ia_l

_

B

_

a

-nk

-s

� 

800 

600 

400 

200 

0 

Savings Institutions 

Commercial Banks 

All FDIC-Insured Institutions 

$819 Savings Institutions 

$640 $592 $544 

$454 

$384 

$334 

$95 $56 

12/90 12/91 12/92 3/93 6/93 9/93 12/93 3/94 6/94 9/94 12/94 3/95 6/95 

298 291 184 167 128 103 92 

342 528 408 377 326 281 242 

20 

89 

53 

71 

42 

59 

36 

39 

33 

39 

27 

33 

23 

FDIC Quarterly Banking Profile 

Second Quarter 1995 
NOTES TO USERS 

This publication contains financial data and other information 

for depository institutions insured by the Federal Deposit Insurance Corporation (FDIC). These notes are an integral part of 

this publication and provide information regarding the comparability of source data and reporting differences over time. The 

information presented in the FDIC Quarterly Banking Profile is 

divided into the following groups of institutions: 

FDIC-Insured Commercial Banks 

(Tables I-A through V-A.) 

This section covers commercial banks insured by the FDIC 

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

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

the three federal commercial bank regulators (the Board of 

Governors of the Federal Reserve System, the FDIC or the 

Office of the Comptroller of the Currency). 

FDIC-Insured Savings Institutions 

(Tables 1-B through V-8.) 

This section covers savings institutions insured by either Bl F 

or SAIF that operate under state or federal banking codes 

applicable to thrift institutions, except for one self-liquidating 

institution primarily funded by the FSLIC Resolution Fund 

(FRF). Savings institutions that have been placed in Resolution Trust Corporation conservatorship are also excluded 

from these tables while in conservatorship. The institutions 

covered in this section are regulated by and submit financial 

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

Office of Thrift Supervision (OTS). 

FDIC-Insured Institutions by Insurance Fund 

(Tables 1-C through 11-E.) 

Summary balance-sheet and earnings data are provided for 

commercial banks and savings institutions according to 

insurance fund membership. BIF-member institutions may 

acquire SAIF-insured deposits, resulting in institutions with 

some deposits covered by both insurance funds. Also, SAIF 

members may acquire BIF-insured deposits. The insurance 

fund membership does not necessarily reflect which fund 

insures the largest percentage of an institution's deposits. 

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

each include deposits from both insurance funds. Depository institutions that are not insured by the FDIC through 

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

Banking Profile. U.S. branches of institutions headquartered in foreign countries and non-deposit trust companies 

are not included. Efforts are made to obtain financial reports 

for all active institutions. However, in some cases, final 

financial reports are not available for institutions that have 

closed or converted their charter. 

DATA SOURCES 

The financial information appearing in this publication is obtained primarily from the Federal Financial Institutions Examination Council (FFIEC) Ca// Reports and the OTS Thrift 

Financial Reports submitted by all FDIC-insured depository 

institutions. This information is stored on and retrieved 

from the FDIC's Research Information System (RIS) data 

base. 

FDIC Quarterly Banking Profile 

Second Quarter 1995 21 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting 

and accounting requirements of the FFIEC Ca// Reports. 

The detailed schedules of the Thrift Financial Report reflect 

the consolidation of the parent thrift with all finance subsidiaries. All other subsidiaries are reported as investments on 

an equity basis or a cost basis. Some accounting differences exist, such as asset sales with recourse, for which 

the data necessary to reconcile these differences are not 

reported. 

All asset and liability figures used in calculating performance 

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

interim periods, divided by the total number of periods). For 

"pooling-of-interest" mergers, the assets of the acquired 

institution(s) are included in average assets since the yearto-date income includes the results of all merged institutions. No adjustments are made for "purchase 

accounting" mergers. Growth rates represent the percentage change over a 12-month period in totals for 

institutions in the base period to totals for institutions in 

the current period. Tables Ill and IV do not provide growth 

rates for the "Asset Size Distribution" since many institutions migrate between size groups. 

Asset Migrations 

All data are collected and presented based on the location 

of each reporting institution's main office. When a main office 

is relocated to another state, adjustments to prior-period 

data may be made to more accurately reflect geographic 

growth rates. In other situations, no adjustments are possible. For example, reported data may include assets and 

liabilities located outside of the reporting institution's home 

state. Also, institutions may change their charters, resulting 

in an inter-industry migration, e.g. savings institutions can 

convert to commercial banks. These situations can affect 

state and regional totals. 

RECENT ACCOUNTING CHANGES 

FASB Statement 115, "Accounting for Certain Investments 

in Debt and Equity Securities." Requires that securities 

that are not held in trading accounts be measured at 

either amortized cost or fair (market) value, depending 

on their classification category. For additional details, 

see "Notes to Users," First Quarter, 1994, Quarterly 

Banking Profile. 

FASB Interpretation 39, "Offsetting of Amounts Related to 

Certain Contracts." Covers fair value amounts recognized 

as assets and liabilities on the balance sheet for off-balancesheet derivative contracts under which the amounts to be 

received or paid or items to be exchanged depend on future 

events or other factors (e.g., future and forward contracts, 

interest-rate swaps, exchange-rate swaps, and other conditional and exchange contracts). For additional details, see 

"Notes to Users," First Quarter, 1994, Quarterly Banking 

Profile. 

Notes to Users 
DEFINITIONS (in alphabetical order) 

All other assets - total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

estate, investment in unconsolidated subsidiaries, customers' liability on acceptances outstanding, assets held in 

trading accounts, federal funds sold, securities purchased 

with agreements to resell, and other assets. Beginning 

3/31/94, FASB Interpretation 39 limited the netting of related 

trading assets and liabilities, which had the effect of increasing the amount of trading account assets reported. 

All other liabilities - bank's liability on acceptances, limited-life preferred stock, and other liabilities. Effective 

3/31/94, includes revaluation losses on assets held in trading accounts. 

BIF-insured deposits (estimated)- the amount of deposits in accounts of less than $100,000 insured by the BIF. For 

SAIF-member "Oakar'' institutions, it represents the adjusted attributable amount acquired from BIF members. 

Capital category distribution - each institution's capital 

category is calculated or estimated from its financial report 

and does not reflect supervisory upgrades or downgrades: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

Capital* Capital• Leverage Equity 

Well-capitalized �10% and �6% and �5% 

Adequately capitalized �8% and �4% and �4% 

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

Significantly 

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

Critically undercapitalized - :c:;2% 

* As a percentage of risk-weighted assets. 

Construction and development loans - includes loans for 

all property types under construction, as well as loans for 

land acquisition and development. 

Core capital - common equity capital plus noncumulative 

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

mortgage servicing rights) included in core capital is limited 

in accordance with supervisory capital regulations. 

Cost of funding earning assets - total interest expense 

paid on deposits and other borrowed money as a percentage of average earning assets. 

Derivative contracts, gross fair values (positive/negative) 

- are reported separately and represent the amount at which

a contract could be exchanged in a transaction between

willing parties, other than in a forced or liquidation sale. If a

quoted market price is available for a contract, the fair value

reported for that contract is calculated using this market

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

banks use the best estimate of fair value based on quoted

market prices of similar contracts or on valuation techniques

such as discounted cash flows. This information is reported

only by banks with assets greater than $100 million.

Direct and indirect investments in real estate - excludes 

loans secured by real estate and property acquired through 

foreclosure. 

Notes to Users 

Earning assets - all loans and other investments that earn 

interest or dividend income. 

Estimated insured deposits - estimated amount of insured deposits (account balances less than $100,000). The 

sum of all deposit balances in accounts of less than 

$100,000 plus the number of accounts with balances greater 

than $100,000 multiplied by $100,000. 

Failed/assisted institutions - An institution fails when 

regulators take control of the institution, placing the assets 

and liabilities into a bridge bank, conservatorship, receivership, or another healthy institution. This action may require 

the FDIC - or the RTC - to provide funds to cover losses. 

An institution is defined as "assisted" when the institution 

remains open and receives some insurance funds in order 

to continue operating. 

FHLB advances - borrowings from the Federal Home Loan 

Bank (FHLB) reported by institutions that file a Thrift Financial Report. Institutions that file a Ca// Report do not report 

borrowings ("advances") from the FHLB separately. 

Goodwill and other intangibles - intangible assets include 

mortgage servicing rights, purchased credit card relationships and other identifiable intangible assets. 

Loans secured by real estate - includes home equity 

loans, junior liens secured by 1-4 family residential properties and all other loans secured by real estate. 

Loans to individuals - includes outstanding credit card 

balances and other secured and unsecured consumer 

loans. 

22 

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

with remaining maturities or repricing intervals of over five 

years. 

Mortgage-backed securities - certificates of participation 

in pools of residential mortgages and collateralized mortgage obligations issued or guaranteed by governmentsponsored or private enterprises. Effective 3/31/94, the full 

implementation of FASB 115 meant that a portion of banks' 

mortgage-backed securities portfolio is now reported based 

upon fair (market) values; previously, all mortgage-backed 

securities not held in trading accounts were reported at 

either amortized cost or lower of cost or market. 

Net charge-offs - total loans and leases charged off (removed from balance sheet because of uncollectibility), less 

amounts recovered on loans and leases previously charged 

off. 

Net interest margin - the difference between interest and 

dividends earned on interest-bearing assets and interest 

paid to depositors and other creditors, expressed as a 

percentage of average earning assets. No adjustments are 

made for interest income that is tax exempt. 

Net operating income - income excluding discretionary 

transactions such as gains (or losses) on the sale of investment securities and extraordinary items. Income taxes subtracted from operating income have been adjusted to 

exclude the portion applicable to securities gains (or losses). 

Noncurrent assets - the sum of loans, leases, debt securities and other assets that are 90 days or more past due, or 

FDIC Quarterly Banking Profile 

Second Quarter 1995 
in nonaccrual status. Noncurrent debt securities and other 

assets were not included prior to March 1991. 

Noncurrent loans & leases - the sum of loans and leases 

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

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

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

following: interest-rate contracts, defined as: the notional 

value of interest-rate swaps, futures and forward contracts 

and option contracts; foreign-exchange-rate contracts and 

commodity and equity contracts (defined similarly to interest-rate contracts). 

Futures and forward contracts - a contract in which the 

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

a specified future date, a specific quantity of underlying at 

a specified price or yield. These contracts exist for a 

variety of underlyings, including the traditional agricultural 

or physical commodities, as well as currencies and interest rates. Futures contracts are standardized and are 

traded on organized exchanges which set limits on counterparty credit exposure. Forward contracts do not have 

standardized terms, and are traded over the counter. 

Option contracts - a contract in which the buyer acquires 

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

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

period or on a specified future date, in return for compensation (such as a fee or premium). The seller is obligated to 

purchase or sell the underlying at the discretion of the buyer 

of the contract. 

Swaps - an obligation between two parties to exchange 

a series of cash flows at periodic intervals (settlement 

dates), for a specified period. The cash flows of a swap 

are either fixed, or determined for each settlement date by 

multiplying the quantity of the underlying (notional principal) by specified reference rates or prices. Except for 

currency swaps, the notional principal is used to calculate 

each payment but is not exchanged. 

Other borrowed funds - federal funds purchased, securities sold with agreements to repurchase, demand notes 

issued to the U.S. Treasury, other borrowed money, mortgage indebtedness and obligations under capitalized 

leases. Effective 3/31/94, includes newly-reported item 

"Trading liabilities," less revaluation losses on assets held in 

trading accounts. 

Other real estate owned - primarily foreclosed property. 

Direct and indirect investments in real estate ventures are 

excluded. The amount is reflected net of valuation allowances. For institutions that file a Thrift Financial Report 

(TFR), the valuation allowance subtracted also includes 

allowances for other repossessed assets. Also, for TFR 

filers the components of other real estate owned are reported gross of valuation allowances. 

Percent of institutions with earnings gains - the percent 

of institutions that increased their net income (or decreased 

their losses) compared to the same period a year earlier. 

"Problem" institutions - Federal regulators assign a composite rating to each financial institution, based upon an 

FDIC Quarterly Banking Profile 

Second Quarter 1995 23 

evaluation of financial and operational criteria. The rating is 

based on a scale of 1 to 5 in ascending order of supervisory 

concern. "Problem" institutions are those institutions with 

financial, operational, or managerial weaknesses that 

threaten their continued financial viability. Depending upon 

the degree of risk and supervisory concern, they are rated 

either a "4" or "5". For all BIF-member institutions, and for 

all SAi F-member institutions for which the FDIC is the 

primary federal regulator, FDIC composite ratings are used. 

For all SAIF-member institutions whose primary federal 

regulator is the OTS, the OTS composite rating is used. 

Restructured loans and leases - loan and lease financing 

receivables with terms restructured from the original contract. Excludes restructured loans and leases that are not 

in compliance with the modified terms. 

Return on assets - net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total assets. The basic yardstick of bank profitability. 

Return on equity - net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total equity capital. 

Risk-weighted assets - assets adjusted for risk-based 

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

off-balance-sheet items multiplied by risk-weights that range 

from zero to 100 percent. A conversion factor is used to 

assign a balance sheet equivalent amount for selected 

off-balance-sheet accounts. 

SAIF-insured deposits (estimated) - the amount of deposits in accounts of less than $100,000 insured by the SAIF. 

For BIF-member "Oakar" institutions, it represents the adjusted attributable amount acquired from SAIF members. 

Securities - excludes securities held in trading accounts. 

Effective 3/31/94, the full implementation of FASB 115 meant 

that a portion of banks' securities portfolios is now reported 

based upon fair (market) values; previously, all securities not 

in held trading accounts were reported at either amortized 

cost or lower of cost or market. 

Troubled real estate asset rate - noncurrent real estate 

loans plus other real estate owned as a percent of total real 

estate loans and other real estate owned. 

Unused loan commitments - includes credit card lines, 

home equity lines, commitments to make loans for construction, loans secured by commercial real estate, and unused 

commitments to originate or purchase loans. 

Volatile liabilities - the sum of large-denomination time 

deposits, foreign-office deposits, federal funds purchased, 

securities sold under agreements to repurchase, and other 

borrowings. Beginning 3/31/94, new reporting detail permits 

the exclusion of other borrowed money with original maturity 

of more than one year; previously, all other borrowed money 

was included. Also beginning 3/31/94, the newly-reported 

item "Trading liabilities," less revaluation losses on assets 

held in trading accounts, is included. 

Yield on earning assets - total interest, dividend and fee 

income earned on loans and investments as a percentage 

of average earning assets. 

Notes to Users 
FDIC 

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Washington, DC 20429-9990 

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