Quarterly Banking Profile
 

SECOND QUARTER 2004 

• Industry Earnings Fall for First Time in Six Quarters 

• Net Income of $31.2 Billion Is Second-Highest Ever 

•	 Lower Gains on Securities Sales, Higher Noninterest Expenses 

Hold Down Profits 

• Loan Growth Sets New Quarterly Record 

• C&I Loans Increase for First Time in More than 3 Years 

Profits Fall Short of a New Record 

Strengthening loan demand boosted earnings at a majority of institutions during the second 

quarter, but higher expenses at a few large banks caused total industry income to register a 

slight decline. Insured commercial banks and savings institutions earned $31.2 billion in the 

second quarter of 2004, up $986 million (3.3 percent) from a year earlier. This was $656 

million (2.1 percent) less than they earned in the first quarter, but it still represented the 

second-highest quarterly earnings total ever for the industry. A decline of $954 million (36.7 

percent) in gains on sales of securities and other assets, and a $3.2-billion (4.3 percent) 

increase in noninterest expenses were the main reasons that earnings failed to set a new 

record. The average return on assets (ROA) was 1.31 percent, compared to 1.38 percent in 

the first quarter. Almost 60 percent of the 9,079 institutions reported higher net income, 

while 55 percent had higher ROAs. More than half of all institutions — 53 percent — had 

ROAs of 1 percent or higher for the quarter. 

A Majority of Institutions Report Improved Margins 

Rising interest rates reduced the market values of fixed-rate securities, contributing to the 

decline in gains on securities sales from first-quarter levels. However, higher rates also 

increased the values of loan servicing assets, contributing to a $1.7-billion (55.0-percent) 

increase in servicing income. Another boost to earnings came from a $1.7-billion (2.3 

percent) improvement in net interest income that was made possible by a $218.1-billion (2.7­

percent) increase in interest-earning assets. A majority of institutions (52 percent) reported 

improved net interest margins in the second quarter, but narrower margins at larger 

institutions caused the industry average to fall by 4 basis points, from 3.68 percent to 3.64 

percent. 

Lower Loss Expenses Lift International Earnings 

Net income from international operations registered strong improvement for a second 

consecutive quarter, increasing by $1.2 billion (43.7 percent), after growing by $1.7 billion 

(155.1 percent) in the first quarter. Lower provisions for loan losses in international portfolios 

(down $696 million, or 51.3 percent) contributed to the increase in earnings. International 

operations provided 12.5 percent of the industry’s total net income in the second quarter, 

compared to 8.5 percent in the first quarter. 

FEDERAL DEPOSIT INSURANCE CORPORATION	 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

Loss Provisions for Domestic Operations Increase 

Loan-loss provisions declined for the fifth time in the last six quarters. The $211-million (2.8­

percent) decrease was entirely attributable to the lower provisions for banks’ international 

operations. Domestic loan-loss provisions were $485 million (7.8 percent) higher than in the 

first quarter, but were $2.1 billion (23.7 percent) less than in the second quarter of 2003. 

Noncurrent Loan Rate Falls to Historic Low 

Asset-quality indicators continued the improving trend that began five quarters ago.
 

Noncurrent loans declined by $4.2 billion (7.6 percent), led by a $2.2-billion (13.1-percent)
 

decline in noncurrent loans to commercial and industrial (C&I) borrowers. An $898-million (6.5­

percent) decline in noncurrent residential mortgage loans also contributed to the improvement.
 

The percentage of loans that were noncurrent fell from 1.00 percent to 0.89 percent during the
 

quarter. This is the lowest level for this ratio in the 20 years that insured institutions have
 

reported noncurrent loan data. During the last six quarters, total noncurrent loans have
 

declined by $17.4 billion (25.2 percent).
 

Lower Losses on Foreign Loans Lead Decline in Charge-offs 

Net charge-offs totaled $8.2 billion in the quarter, $601 million (6.8 percent) lower than in the 

first quarter. This is the lowest level for charge-offs since the first quarter of 2001. Net chargeoffs of C&I loans were $247 million (15.4 percent) lower, thanks to a $422-million decline in 

charge-offs on loans to foreign C&I borrowers. Net charge-offs of non-credit card consumer 

loans were down by $168 million (10.0 percent) during the quarter. 

Coverage Ratio Improves for Sixth Consecutive Quarter 

For a sixth consecutive quarter, the industry set aside less in loss provisions than it chargedoff, as large banks continued to reduce their loss reserves. The industry’s total reserves 

declined by $145 million (0.2 percent) during the second quarter, and the ratio of reserves to 

total loans fell from 1.52 percent to 1.45 percent. Despite the drop in reserves, the decline in 

noncurrent loans during the quarter caused the industry’s “coverage ratio” to increase from 

$1.51 in reserves for every $1.00 in noncurrent loans to $1.63. 

Merger-related Goodwill Boosts Equity Capital 

Equity capital registered strong growth in the second quarter, increasing by $31.1 billion (3.5 

percent), after growing by $55.3 billion (6.7 percent) in the first quarter. Much of the increase 

was attributable to an increase in merger-related goodwill. Tangible equity capital grew by 

$14.6 billion (2.0 percent). Because regulatory capital excludes goodwill, the growth in industry 

assets caused slight declines in the industry’s regulatory capital ratios, even as the equity-toassets ratio increased from 9.45 percent to 9.50 percent. A $24.7-billion decline in other 

comprehensive income, reflecting a drop in unrealized gains on available-for-sale securities 

driven by higher interest rates, limited the increase in equity. 

Real Estate Loan Growth Remains Strong 

Total loans and leases increased by a record-breaking $234.6 billion (4.2 percent) during the 

quarter, eclipsing the previous quarterly record of $161.6 billion, set in the second quarter of 

2000. Strong growth was registered in both residential and commercial real estate loans. 

Home equity loans increased by $39.3 billion (10.4 percent); residential mortgage loans 

increased by $70.3 billion (4.2 percent); commercial real estate loans increased by $18.6 billion 

SECOND QUARTER 2004 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

(2.7 percent); and real estate construction and development loans grew by $14.0 billion (4.9 

percent). C&I loans, which had declined in each of the previous 13 quarters, increased by 

$16.7 billion (1.8 percent). 

Small Business Loans Are Up Over Past 12 Months 

Data reported annually as of June 30 showed that loans to small businesses increased over 

the previous 12 months by $8.7 billion (3.3 percent). During the 12 months between June 

2002 and June 2003, small C&I loans showed a net decline of $3.0 billion, owing to reductions 

in the small-business portfolios of a few large banks. In contrast, during the latest 12-month 

period, the industry’s C&I loans to larger borrowers (original amounts of greater than $1 million) 

declined by $10.7 billion (2.0 percent). Loans to small commercial real estate borrowers had 

much stronger growth, increasing by $20.6 billion (7.3 percent). However, the growth in these 

loans, which, like the small C&I loans, consist of loans with original amounts of $1 million or 

less, has lagged behind the rate of growth in larger commercial real estate loans (up 12.1 

percent in the 12 months ended June 30). Small agricultural production loans (original 

amounts of less than $500,000) fell for the third consecutive 12-month period (by $1.0 billion, 

or 3.2 percent), and for the fifth time in the last six years. Small agricultural loans secured by 

farmland (amounts less than $500,000) increased during the 12 months ended June 30, but at 

a rate well below that for larger farmland loans (3.6 percent growth, versus a 22.3 percent 

increase). 

Higher Interest Rates Cause Securities Portfolios to Depreciate 

The industry’s securities holdings declined by $33.5 billion in the second quarter. It is likely 

that lower market values for securities classified as “available for sale” were responsible for all 

of the decline. At insured commercial banks, the market value of their available-for-sale 

securities declined by $23.0 billion during the quarter, while the book value of these securities 

increased by $12.1 billion (savings institutions that file Thrift Financial Reports do not report the 

book value of their available-for-sale securities). Since available-for-sale securities are 

reported at market value, and 90 percent of all the industry’s securities are designated as 

available for sale, this shift in valuation could easily have accounted for the entire decline 

reported by the industry. 

Brokered Deposits Register Strong Growth 

Total deposits increased by $156.6 billion (2.6 percent) in the quarter, but this growth failed to 

keep pace with the increase in industry assets. The share of industry assets that is funded by 

deposits fell from 65.34 percent to 65.12 percent. This is the lowest level since the third 

quarter of 2001, and the second-lowest level ever recorded by the industry. Deposits in foreign 

offices grew by $47.7 billion (6.1 percent), while deposits in domestic offices increased by 

$108.9 billion (2.0 percent). Interest-bearing deposits accounted for more than three-quarters 

of the growth in domestic deposits ($83.0 billion), with brokered deposits accounting for more 

than one-quarter of the increase ($29.3 billion). 

“Problem List” Declines by Twelve Institutions 

The number of insured institutions reporting financial results declined from 9,116 to 9,079 

during the second quarter. There were 30 new charters added during the quarter, while 63 

institutions were absorbed by mergers and one insured institution failed. Seven insured 

savings institutions with $5.8 billion in assets converted from mutual to stock ownership. The 

number of institutions on the FDIC’s “Problem List” fell from 114 to 102 during the quarter. 

Total assets of “problem” institutions declined from $29.9 billion to $25.9 billion. 

ALL FDIC-INSURED INSTITUTIONS SECOND QUARTER 2004 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 1999 TABLE I-A. Selected Indicators, All FDIC-Insured Institutions* 

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

Return on equity (%) ................................................................ 

Core capital (leverage) ratio (%) .............................................. 

Noncurrent assets plus 

other real estate owned to assets (%) ...................................
 

Net charge-offs to loans (%) ....................................................
 

Asset growth rate (%) ...............................................................
 

Net interest margin (%) ............................................................
 

Net operating income growth (%) ............................................
 

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

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

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

Percentage of unprofitable institutions (%) ..............................
 

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

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

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

2004** 2003** 2003 2002 2001 2000 

1.33 

14.21 

8.05 

0.60 

0.60 

8.13 

3.61 

9.67 

9,079 

7,691 

1,388 

5.57 

102 

$26 

4 

1.38 

15.07 

7.87 

0.81 

0.80 

11.00 

3.76 

6.86 

9,268 

7,833 

1,435 

5.37 

125 

$32 

2 

1.38 

15.03 

7.88 

0.75 

0.78 

7.58 

3.73 

15.90 

9,181 

7,770 

1,411 

5.95 

116 

$30 

3 

1.30 

14.12 

7.86 

0.90 

0.97 

7.20 

3.96 

18.36 

9,354 

7,888 

1,466 

6.67 

136 

$39 

11 

1.14 1.14 1.26 

12.97 13.53 14.71 

7.78 7.71 7.80 

0.87 0.71 0.63 

0.83 0.59 0.53 

5.44 8.41 5.40 

3.78 3.77 3.89 

-0.85 1.71 19.73 

9,614 9,904 10,222 

8,080 8,315 8,580 

1,534 1,589 1,642 

8.24 7.53 7.64 

114 94 79 

$40 $24 $10 

4 7 8 

* Excludes insured branches of foreign banks (IBAs)
 

** 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, All FDIC-Insured Institutions 

(dollar figures in millions) 

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

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

CONDITION DATA 

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

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

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

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

Construction and development ....................................................................... 

Home equity lines ........................................................................................... 

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

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

Credit cards .................................................................................................... 

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

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

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

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

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

Net loans and leases ......................................................................................... 

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

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

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

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

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

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

Domestic office deposits ................................................................................. 

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

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

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

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

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

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

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

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

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

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

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

FHLB Advances .................................................................................................... 

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

Trust assets .......................................................................................................... 

Assets securitized and sold*** .............................................................................. 

Notional amount of derivatives*** ......................................................................... 

9,079 9,116 9,268 -2.0 

2,147,255 2,131,256 2,088,837 2.8 

$9,648,5 87 $9,377,108 $8,923,215 8.1 

3,428,629 3,274,535 3,038,842 12.8 

1,744,067 1,673,737 1,613,282 8.1 

718,195 699,610 652,696 10.0 

299,370 285,419 256,977 16.5 

415,806 376,494 295,360 40.8 

926,576 909,912 933,654 -0.8 

846,111 831,488 764,024 10.7 

322,832 313,517 269,861 19.6 

47,289 44,140 46,256 2.2 

537,618 491,351 470,613 14.2 

3,067 2,918 3,589 -14.6 

5,783,157 5,548,508 5,249,800 10.2 

84,136 84,281 85,925 -2.1 

5,699,021 5,464,228 5,163,875 10.4 

1,874,343 1,907,839 1,762,635 6.3 

4,955 5,265 5,520 -10.2 

240,383 188,936 158,825 51.4 

1,829,885 1,810,840 1,832,361 -0.1 

9,648,587 9,377,108 8,923,215 8.1 

6,283,642 6,127,074 5,844,729 7.5 

5,456,170 5,347,252 5,166,641 5.6 

827,472 779,822 678,088 22.0 

1,937,495 1,812,576 1,671,452 15.9 

110,615 107,196 102,826 7.6 

399,783 444,301 492,644 -18.8 

917,053 885,960 811,564 13.0 

46,787 47,409 52,099 -10.2 

51,509 55,746 64,828 -20.5 

2,448 2,538 3,294 -25.7 

770 1,921 675 14.0 

1,073,485 1,103,082 1,034,763 3.7 

8,426,862 8,208,801 7,686,088 9.6 

532,524 521,794 454,972 17.0 

6,188,233 6,112,129 5,895,020 5.0 

13,863,824 13,657,825 11,862,313 16.9 

863,545 863,550 826,713 4.5 

81,705,016 77,244,109 66,584,881 22.7 

2nd Quarter 

2004 

1st Quarter 

2004 

2nd Quarter 

2003 

%Change 

03:2-04:2 

INCOME DATA 

2nd Quarter 

2003 

%Change 

03:2-04:2 

First Half 

2004 

First Half 

2003 %Change 

2nd Quarter 

2004 

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

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

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

Provision for loan and lease losses .......................................................... 

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

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

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

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

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

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

From international operations ............................................................. 

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

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

Retained earnings ..................................................................................... 

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

$205,086 $205,120 0.0 $105,102 $102,539 2.5 

58,135 64,852 -10.4 29,642 31,971 -7.3 

146,951 140,268 4.8 75,460 70,568 6.9 

14,831 20,227 -26.7 7,367 9,975 -26.1 

104,209 97,736 6.6 53,635 49,746 7.8 

148,451 137,156 8.2 76,939 70,193 9.6 

4,187 8,545 -51.0 1,646 4,868 -66.2 

30,120 29,523 2.0 15,279 14,836 3.0 

214 1 N/M 28 21 34.0 

62,159 59,644 4.2 31,184 30,198 3.3 

6,588 4,525 45.6 3,905 2,430 60.7 

16,603 20,554 -19.2 8,174 10,250 -20.3 

31,862 42,114 -24.3 18,314 24,588 -25.5 

30,297 17,530 72.8 12,870 5,610 129.4 

59,078 53,870 9.7 30,042 26,890 11.7 

*** Commercial banks only. N/M - Not Meaningful 
TABLE III-A. Second Quarter 2004, All FDIC-Insured Institutions 

SECOND QUARTER 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

9,079 36 6 1,775 4,351 995 145 489 1,195 87 

Commercial banks .............................................. 7,691 32 6 1,770 3,950 243 115 420 1,086 69 

Savings institutions ............................................. 1,388 4 0 5 401 752 30 69 109 18 

Total assets (in billions) ......................................... $9,648.6 $334.5 $1,554.5 $135.7 $3,031.3 $1,401.7 $160.8 $57.1 $155.6 $2,817.4 

Commercial banks .............................................. 8,048.4 326.3 1,554.5 135.2 2,726.3 322.8 108.4 43.4 135.8 2,695.6 

Savings institutions ............................................. 1,600.2 8.2 0.0 0.5 305.0 1,078.9 52.3 13.7 19.8 121.8 

Total deposits (in billions) ...................................... 6,283.6 102.1 923.5 110.3 2,202.3 818.9 79.8 43.0 127.9 1,875.9 

Commercial banks .............................................. 5,326.5 99.8 923.5 109.9 2,004.4 179.0 46.3 32.6 111.9 1,819.1 

Savings institutions ............................................. 957.2 2.2 0.0 0.4 197.9 639.9 33.5 10.4 15.9 56.8 

Net income (in millions) ......................................... 31,184 3,411 2,582 431 10,178 4,114 613 183 428 9,245 

Commercial banks .............................................. 26,646 3,196 2,582 430 9,204 1,321 451 150 389 8,924 

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

Performance Ratios (annualized,%) 

4,538 215 0 1 974 2,793 162 33 38 322 

Yield on earning assets ......................................... 5.07 11.14 4.38 5.62 5.26 4.87 6.37 4.21 5.34 4.47 

Cost of funding earning assets .............................. 1.43 2.09 1.57 1.56 1.34 1.69 1.73 1.30 1.50 1.21 

Net interest margin ............................................. 3.64 9.04 2.81 4.05 3.93 3.18 4.63 2.92 3.84 3.26 

Noninterest income to assets ................................ 2.26 11.03 3.07 0.70 1.64 1.11 2.63 6.55 1.13 2.02 

Noninterest expense to assets .............................. 3.24 8.99 4.14 2.71 2.93 2.33 3.62 7.12 3.13 2.78 

Loan and lease loss provision to assets ................ 0.31 3.70 0.26 0.16 0.25 0.07 0.85 0.08 0.15 0.11 

Net operating income to assets ............................. 1.27 3.91 0.66 1.27 1.38 1.07 1.51 1.30 1.06 1.25 

Pretax return on assets ......................................... 1.96 6.29 0.98 1.57 1.99 1.85 2.42 1.95 1.44 2.01 

Return on assets ................................................... 1.31 4.09 0.68 1.27 1.36 1.21 1.54 1.29 1.10 1.33 

Return on equity .................................................... 13.87 22.96 9.30 11.92 14.47 13.76 19.37 7.83 10.44 13.43 

Net charge-offs to loans and leases ...................... 0.58 5.11 0.99 0.18 0.32 0.11 1.15 0.41 0.29 0.31 

Loan and lease loss provision to net charge-offs .. 90.13 96.17 68.73 145.14 113.91 93.06 90.20 77.18 91.61 64.80 

Efficiency ratio ....................................................... 58.54 45.60 76.29 60.77 55.95 57.14 52.38 76.21 66.87 56.56 

% of unprofitable institutions ................................. 6.01 8.33 16.67 2.99 6.67 5.73 3.45 16.56 4.35 4.60 

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

Structural Changes 

55.42 69.44 83.33 58.20 58.97 44.82 50.34 46.83 51.05 51.72 

New Charters ..................................................... 30 0 0 2 6 1 0 21 0 0 

Institutions absorbed by mergers ....................... 63 0 0 3 41 6 1 2 4 6 

Failed Institutions ............................................... 

PRIOR SECOND QUARTERS 

(The way it was...) 

1 0 0 0 1 0 0 0 0 0 

Return on assets (%) ............................ 2003 1.38 4.01 1.04 1.26 1.31 1.49 1.49 0.65 1.08 1.29

 ............................. 2001 1.18 2.81 0.90 1.21 1.20 1.07 1.14 1.33 1.05 1.00

 ............................. 1999 1.21 3.74 0.63 1.24 1.31 1.07 1.32 1.36 1.19 1.46 

Net charge-offs to loans & leases (%) ...... 2003 0.79 5.37 1.39 0.25 0.56 0.18 0.89 0.55 0.31 0.56

 ............................. 2001 0.72 4.01 0.65 0.23 0.60 0.16 1.02 0.38 0.34 0.75

 ............................. 1999 0.49 4.10 0.44 0.26 0.38 0.14 0.39 0.20 0.26 0.21 

* See Table IV-A (page 8) for explanations. 
TABLE III-A. Second Quarter 2004, All FDIC-Insured Institutions 

SECOND QUARTER 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

9,079 4,278 4,217 468 116 1,148 1,229 1,990 2,120 1,846 746 

Commercial banks ............................................... 7,691 3,819 3,444 342 86 601 1,077 1,629 2,011 1,713 660 

Savings institutions .............................................. 1,388 459 773 126 30 547 152 361 109 133 86 

Total assets (in billions) .......................................... $9,648.6 $221.4 $1,172.1 $1,293.6 $6,961.4 $3,326.2 $2,041.3 $1,701.9 $760.2 $578.1 $1,240.9 

Commercial banks ............................................... 8,048.4 197.8 923.6 934.2 5,992.8 2,767.3 1,900.8 1,552.2 715.2 484.3 628.6 

Savings institutions .............................................. 1,600.2 23.6 248.6 359.4 968.6 558.9 140.5 149.6 45.1 93.8 612.3 

Total deposits (in billions) ....................................... 6,283.6 184.2 936.5 868.2 4,294.8 2,082.6 1,396.3 1,122.6 530.7 430.9 720.6 

Commercial banks ............................................... 5,326.5 165.7 747.6 634.4 3,778.8 1,724.3 1,301.0 1,017.4 502.3 379.6 402.0 

Savings institutions .............................................. 957.2 18.6 188.8 233.8 516.0 358.3 95.3 105.3 28.4 51.3 318.6 

Net income (in millions) ........................................... 31,184 543 3,379 4,683 22,579 8,799 7,018 5,827 2,863 1,868 4,810 

Commercial banks ............................................... 26,646 497 2,886 3,369 19,894 7,226 6,617 5,341 2,780 1,475 3,207 

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

Performance Ratios (annualized,%) 

4,538 45 493 1,314 2,686 1,573 401 486 83 393 1,603 

Yield on earning assets ........................................... 5.07 5.59 5.53 5.19 4.94 4.83 4.97 4.91 5.66 5.29 5.57 

Cost of funding earning assets ............................... 1.43 1.49 1.54 1.44 1.40 1.54 1.48 1.43 1.17 1.32 1.28 

Net interest margin ............................................... 3.64 4.10 3.98 3.75 3.54 3.29 3.50 3.48 4.49 3.97 4.29 

Noninterest income to assets .................................. 2.26 1.26 1.29 1.95 2.51 2.73 1.99 1.97 2.85 1.61 1.79 

Noninterest expense to assets ................................ 3.24 3.56 3.17 3.05 3.28 3.62 2.95 2.86 3.98 3.24 2.81 

Loan and lease loss provision to assets ................. 0.31 0.22 0.21 0.31 0.33 0.32 0.20 0.23 0.52 0.27 0.47 

Net operating income to assets .............................. 1.27 0.96 1.14 1.35 1.28 1.07 1.26 1.35 1.55 1.27 1.51 

Pretax return on assets ........................................... 1.96 1.27 1.60 2.19 2.00 1.61 2.08 2.03 2.27 1.74 2.51 

Return on assets ..................................................... 1.31 0.99 1.17 1.48 1.32 1.08 1.39 1.37 1.53 1.31 1.59 

Return on equity ...................................................... 13.87 8.45 11.63 13.97 14.49 11.54 16.49 15.85 14.74 13.67 13.29 

Net charge-offs to loans and leases ....................... 0.58 0.23 0.24 0.44 0.68 0.85 0.32 0.41 0.77 0.39 0.61 

Loan and lease loss provision to net charge-offs .... 90.13 160.81 133.91 113.44 83.34 78.11 104.31 84.78 94.29 110.95 106.09 

Efficiency ratio ......................................................... 58.54 70.25 63.67 55.47 57.97 63.83 57.72 56.06 57.04 61.62 48.80 

% of unprofitable institutions ................................... 6.01 9.98 2.47 2.56 2.59 6.71 8.54 5.88 3.58 6.28 7.37 

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

Structural Changes 

55.42 52.99 56.49 64.32 70.69 51.66 63.55 46.18 56.18 57.10 66.22 

New Charters ....................................................... 30 29 1 0 0 4 13 4 3 2 4 

Institutions absorbed by mergers ......................... 63 18 29 16 0 22 9 10 9 5 8 

Failed Institutions ................................................. 

PRIOR SECOND QUARTERS 

(The way it was...) 

1 1 0 0 0 0 0 0 0 0 1 

Return on assets (%) ...............................2003 1.38 0.89 1.20 1.50 1.41 1.25 1.39 1.34 1.57 1.41 1.64

 ............................. 2001 1.18 0.92 1.11 1.20 1.20 1.15 1.23 0.98 1.33 1.23 1.36

 ............................. 1999 1.21 1.02 1.20 1.54 1.12 0.99 1.26 1.25 1.53 1.31 1.39 

Net charge-offs to loans & leases (%) ...... 2003 0.79 0.30 0.31 0.65 0.94 1.14 0.57 0.68 1.05 0.39 0.70

 ............................. 2001 0.72 0.26 0.30 0.77 0.82 0.81 0.63 0.62 0.95 0.40 0.85

 ............................. 1999 0.49 0.22 0.28 0.60 0.52 0.60 0.45 0.29 0.67 0.36 0.51 

* See Table IV-A (page 9) for explanations. 
TABLE IV-A. First Half 2004, All FDIC-Insured Institutions 

FIRST HALF 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

9,079 36 6 1,775 4,351 995 145 489 1,195 87 

Commercial banks .............................................. 7,691 32 6 1,770 3,950 243 115 420 1,086 69 

Savings institutions ............................................. 1,388 4 0 5 401 752 30 69 109 18 

Total assets (in billions) ......................................... $9,648.6 $334.5 $1,554.5 $135.7 $3,031.3 $1,401.7 $160.8 $57.1 $155.6 $2,817.4 

Commercial banks .............................................. 8,048.4 326.3 1,554.5 135.2 2,726.3 322.8 108.4 43.4 135.8 2,695.6 

Savings institutions ............................................. 1,600.2 8.2 0.0 0.5 305.0 1,078.9 52.3 13.7 19.8 121.8 

Total deposits (in billions) ...................................... 6,283.6 102.1 923.5 110.3 2,202.3 818.9 79.8 43.0 127.9 1,875.9 

Commercial banks .............................................. 5,326.5 99.8 923.5 109.9 2,004.4 179.0 46.3 32.6 111.9 1,819.1 

Savings institutions ............................................. 957.2 2.2 0.0 0.4 197.9 639.9 33.5 10.4 15.9 56.8 

Net income (in millions) ......................................... 62,159 6,658 6,704 850 19,827 8,104 1,249 383 847 17,537 

Commercial banks .............................................. 53,065 6,257 6,704 848 17,842 2,515 874 305 777 16,944 

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

Performance Ratios (annualized,%) 

9,094 401 0 2 1,985 5,589 375 78 71 593 

Yield on earning assets ......................................... 5.04 11.03 4.40 5.60 5.27 4.88 6.54 4.25 5.36 4.35 

Cost of funding earning assets .............................. 1.43 2.10 1.56 1.58 1.35 1.72 1.75 1.31 1.52 1.19 

Net interest margin ............................................. 3.61 8.93 2.84 4.02 3.92 3.16 4.79 2.94 3.83 3.16 

Noninterest income to assets ................................ 2.23 11.09 3.09 0.69 1.56 1.18 2.57 6.50 1.12 1.94 

Noninterest expense to assets .............................. 3.18 9.01 3.82 2.71 2.94 2.34 3.55 7.06 3.13 2.71 

Loan and lease loss provision to assets ................ 0.32 3.78 0.29 0.15 0.25 0.08 0.94 0.07 0.16 0.08 

Net operating income to assets ............................. 1.27 3.80 0.87 1.24 1.31 1.08 1.55 1.33 1.05 1.21 

Pretax return on assets .......................................... 1.98 6.13 1.31 1.55 1.95 1.87 2.49 2.03 1.43 1.95 

Return on assets .................................................... 1.33 3.97 0.89 1.26 1.35 1.22 1.58 1.36 1.10 1.29 

Return on equity .................................................... 14.21 22.99 12.22 11.81 14.34 13.84 20.21 8.24 10.39 13.44 

Net charge-offs to loans and leases ...................... 0.60 5.07 1.13 0.15 0.31 0.12 1.29 0.50 0.27 0.29 

Loan and lease loss provision to net charge-offs .. 89.33 98.65 65.32 164.48 117.25 93.80 88.77 53.56 104.85 54.25 

Efficiency ratio ....................................................... 57.97 45.86 70.13 61.44 56.79 56.75 50.80 76.13 67.04 57.32 

% of unprofitable institutions .................................. 5.57 5.56 0.00 2.48 6.41 5.43 4.14 15.13 3.60 4.60 

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

Condition Ratios(%) 

56.21 66.67 66.67 57.13 60.24 45.53 56.55 47.65 52.30 54.02 

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

Loss Allowance to: 

87.34 85.03 82.20 92.03 90.15 91.99 91.33 89.15 91.72 84.38 

Loans and leases ................................................ 1.45 4.80 2.06 1.50 1.42 0.57 1.56 1.64 1.38 1.28 

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

Noncurrent assets plus 

163.34 281.46 113.46 138.30 193.27 78.18 181.44 179.15 144.88 185.39 

other real estate owned to assets ....................... 0.60 1.34 0.75 0.80 0.59 0.58 0.79 0.32 0.64 0.43 

Equity capital ratio ................................................. 9.50 18.02 7.18 10.52 9.34 8.65 7.99 16.27 10.38 10.23 

Core capital (leverage) ratio .................................. 8.05 15.98 6.20 10.16 8.29 7.49 7.94 14.49 10.15 7.81 

Tier 1 risk-based capital ratio ................................. 10.88 14.52 8.80 14.58 10.21 12.78 9.54 32.93 17.12 10.70 

Total risk-based capital ratio .................................. 13.33 17.80 12.37 15.71 12.30 14.08 12.34 34.21 18.33 13.44 

Net loans and leases to deposits ........................... 90.70 236.17 65.17 76.59 92.73 122.02 163.16 34.39 67.05 79.93 

Net loans to total assets ........................................ 59.07 72.07 38.71 62.25 67.37 71.29 80.98 25.92 55.09 53.22 

Domestic deposits to total assets .......................... 

Structural Changes 

56.55 26.71 26.00 81.28 70.10 57.10 49.55 73.36 82.11 59.55 

New Charters ...................................................... 57 0 0 2 13 3 0 37 2 0 

Institutions absorbed by mergers ........................ 154 0 0 10 96 11 13 5 9 10 

Failed Institutions ................................................ 

PRIOR FIRST HALVES 

(The way it was...) 

4 0 0 0 3 0 0 0 1 0 

Number of institutions ............................. 2003 9,268 37 6 1,826 4,118 1,045 183 524 1,429 100

 ............................. 2001 9,747 61 6 1,960 4,008 1,234 257 457 1,679 85

 ............................. 1999 10,328 62 11 2,250 3,579 1,393 287 596 2,064 86 

Total assets (in billions) .......................... 2003 $8,923.2 $294.1 $1,429.3 $127.7 $3,122.3 $1,407.6 $379.6 $64.6 $195.2 $1,902.9

 ............................. 2001 7,635.9 335.7 1,187.9 120.6 3,799.3 1,082.0 140.5 46.5 200.9 722.4

 ............................. 1999 6,594.8 211.0 1,414.6 124.1 2,930.2 1,069.6 78.1 59.2 248.6 459.4 

Return on assets (%) .............................. 2003 1.38 3.79 1.06 1.24 1.32 1.51 1.53 0.95 1.08 1.27

 ............................. 2001 1.20 2.82 1.02 1.20 1.20 1.04 1.06 1.60 1.05 0.97

 ............................. 1999 1.23 3.46 0.84 1.21 1.29 1.03 1.33 1.57 1.39 1.40 

Net charge-offs to loans & leases (%) ...... 2003 0.80 5.36 1.42 0.20 0.56 0.18 0.90 0.45 0.28 0.58

 ............................. 2001 0.68 3.86 0.60 0.20 0.56 0.14 1.08 0.48 0.27 0.71

 ............................. 1999 

Noncurrent assets plus 

0.51 4.18 0.46 0.19 0.39 0.13 0.54 0.20 0.26 0.43 

OREO to assets (%) ............................ 2003 0.81 1.42 1.00 1.00 0.81 0.66 0.81 0.42 0.74 0.67

 ............................. 2001 0.79 1.40 0.74 0.86 0.84 0.54 1.22 0.27 0.62 0.62

 ............................. 1999 0.64 1.48 0.64 0.89 0.63 0.52 1.04 0.31 0.57 0.51 

Equity capital ratio (%) ............................ 2003 9.09 17.13 7.08 10.87 9.40 9.01 8.58 15.34 11.04 8.51

 ............................. 2001 8.72 12.07 6.69 10.79 9.07 8.28 7.75 17.87 10.37 8.08

 ............................. 1999 8.53 14.61 6.99 10.50 8.73 8.23 8.90 13.66 10.15 7.77 

*Asset Concentration Group Definitions (Groups are hierarchical and mutually exclusive) 

Credit-card Lenders - Institutions whose credit-card loans plus securitized receivables exceed 50 percent of total assets plus securitized receivables.
 

International Banks - Banks with assets greater than $10 billion and more than 25 percent of total assets in foreign offices.
 

Agricultural Banks - Banks whose agricultural production loans plus real estate loans secured by farmland exceed 25 percent of their total loans and leases.
 

Commercial Lenders - Institutions whose commercial and industrial loans, plus real estate construction and development loans, plus loans
 

secured by commercial real estate properties exceed 25 percent of total assets. 

Mortgage Lenders - Institutions whose residential mortgage loans, plus mortgage-backed securities, exceed 50 percent of total assets. 

Consumer Lenders - Institutions whose residential mortgage loans, plus credit-card loans, plus other loans to individuals, exceed 50 percent of total assets. 

Other Specialized < $1 Billion - Institutions with assets less than $1 billion, whose loans and leases are less than 40 percent of total assets. 

All Other < $1 billion - Institutions with assets less than $1 billion that do not meet any of the definitions above, they have significant lending 

activity with no identified asset concentrations. 

All Other > $1 billion - Institutions with assets greater than $1 billion that do not meet any of the definitions above, they have significant lending 

activity with no identified asset concentrations. 
TABLE IV-A. First Half 2004, All FDIC-Insured Institutions 

FIRST HALF 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than $100 

Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

9,079 4,278 4,217 468 116 1,148 1,229 1,990 2,120 1,846 746 

Commercial banks ................................................ 7,691 3,819 3,444 342 86 601 1,077 1,629 2,011 1,713 660 

Savings institutions ............................................... 1,388 459 773 126 30 547 152 361 109 133 86 

Total assets (in billions) ........................................... $9,648.6 $221.4 $1,172.1 $1,293.6 $6,961.4 $3,326.2 $2,041.3 $1,701.9 $760.2 $578.1 $1,240.9 

Commercial banks ................................................ 8,048.4 197.8 923.6 934.2 5,992.8 2,767.3 1,900.8 1,552.2 715.2 484.3 628.6 

Savings institutions ............................................... 1,600.2 23.6 248.6 359.4 968.6 558.9 140.5 149.6 45.1 93.8 612.3 

Total deposits (in billions) ........................................ 6,283.6 184.2 936.5 868.2 4,294.8 2,082.6 1,396.3 1,122.6 530.7 430.9 720.6 

Commercial banks ................................................ 5,326.5 165.7 747.6 634.4 3,778.8 1,724.3 1,301.0 1,017.4 502.3 379.6 402.0 

Savings institutions ............................................... 957.2 18.6 188.8 233.8 516.0 358.3 95.3 105.3 28.4 51.3 318.6 

Net income (in millions) ........................................... 62,159 1,090 6,687 9,239 45,143 18,354 13,423 11,659 5,664 3,755 9,304 

Commercial banks ................................................ 53,065 992 5,691 6,642 39,739 15,160 12,680 10,689 5,493 2,961 6,082 

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

Performance Ratios (anualized,%) 

9,094 98 996 2,597 5,404 3,193 743 970 171 794 3,223 

Yield on earning assets ........................................... 5.04 5.58 5.55 5.19 4.90 4.69 5.05 4.91 5.75 5.32 5.55 

Cost of funding earning assets ................................ 1.43 1.51 1.56 1.45 1.40 1.51 1.48 1.45 1.17 1.33 1.31 

Net interest margin ............................................... 3.61 4.08 3.99 3.74 3.50 3.18 3.56 3.47 4.58 3.99 4.23 

Noninterest income to assets .................................. 2.23 1.23 1.28 1.89 2.49 2.68 1.98 1.95 2.72 1.57 1.86 

Noninterest expense to assets ................................ 3.18 3.53 3.18 3.04 3.20 3.40 3.03 2.87 3.93 3.23 2.80 

Loan and lease loss provision to assets .................. 0.32 0.20 0.21 0.29 0.35 0.33 0.17 0.25 0.58 0.24 0.50 

Net operating income to assets ............................... 1.27 0.97 1.13 1.33 1.29 1.11 1.24 1.30 1.51 1.26 1.52 

Pretax return on assets ........................................... 1.98 1.28 1.61 2.17 2.03 1.71 2.03 2.02 2.25 1.78 2.49 

Return on assets ..................................................... 1.33 1.00 1.17 1.48 1.34 1.15 1.36 1.37 1.52 1.33 1.58 

Return on equity ...................................................... 14.21 8.54 11.64 14.04 14.98 12.42 15.94 16.00 14.77 13.92 13.85 

Net charge-offs to loans and leases ........................ 0.60 0.20 0.24 0.41 0.72 0.86 0.34 0.42 0.84 0.36 0.63 

Loan and lease loss provision to net charge-offs .... 89.33 162.47 133.46 112.93 83.09 78.19 85.42 90.47 96.65 110.50 107.88 

Efficiency ratio ......................................................... 57.97 70.63 63.80 56.27 57.00 61.85 58.89 56.21 56.61 61.85 48.26 

% of unprofitable institutions ................................... 5.57 9.68 1.87 2.56 0.86 5.75 9.11 5.33 3.16 5.36 7.51 

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

Condition Ratios(%) 

56.21 53.55 57.62 64.32 69.83 55.57 65.01 45.73 56.42 57.69 66.35 

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

Loss Allowance to: 

87.34 91.84 91.89 91.11 85.73 84.94 86.83 89.14 88.07 90.29 90.31 

Loans and leases ................................................. 1.45 1.40 1.31 1.38 1.50 1.76 1.23 1.45 1.63 1.29 1.17 

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

Noncurrent assets plus 

163.34 128.35 172.09 180.96 160.47 151.70 203.40 151.93 215.32 153.26 144.74 

other real estate owned to assets ........................ 0.60 0.83 0.62 0.55 0.60 0.61 0.42 0.73 0.63 0.67 0.65 

Equity capital ratio ................................................... 9.50 11.50 9.90 10.48 9.19 9.65 8.32 8.56 10.28 9.49 11.91 

Core capital (leverage) ratio .................................... 8.05 11.38 9.55 9.40 7.43 7.64 7.14 7.85 8.30 8.71 10.46 

Tier 1 risk-based capital ratio .................................. 10.88 17.35 13.60 13.36 9.83 10.66 9.60 9.79 10.66 12.48 14.78 

Total risk-based capital ratio ................................... 13.33 18.46 14.81 14.93 12.68 13.49 11.99 12.59 12.71 13.82 16.63 

Net loans and leases to deposits ............................ 90.70 73.13 81.50 92.73 93.04 76.79 85.28 98.66 102.29 81.79 125.78 

Net loans to total assets .......................................... 59.07 60.86 65.12 62.24 57.40 48.08 58.33 65.08 71.41 60.96 73.04 

Domestic deposits to total assets ............................ 

Structural Changes 

56.55 83.21 79.76 66.40 49.96 45.39 62.48 60.14 67.27 74.28 56.97 

New Charters ....................................................... 57 56 1 0 0 6 25 5 5 7 9 

Institutions absorbed by mergers ......................... 154 52 70 30 2 34 16 23 29 22 30 

Failed Institutions ................................................. 

PRIOR FIRST HALVES 

(The way it was...) 

4 4 0 0 0 2 1 0 0 0 1 

Number of institutions ............................. 2003 9,268 4,509 4,183 466 110 1,194 1,236 2,034 2,145 1,884 775

 ............................. 2001 9,747 5,288 3,923 436 100 1,272 1,293 2,145 2,240 1,982 815

 ............................. 1999 10,328 5,984 3,807 443 94 1,329 1,328 2,311 2,370 2,139 851 

Total assets (in billions) .......................... 2003 $8,923.2 $231.4 $1,154.0 $1,303.1 $6,234.8 $3,053.5 $1,867.3 $1,678.4 $439.6 $596.4 $1,288.0

 ............................. 2001 7,635.9 258.6 1,043.9 1,238.8 5,094.5 2,655.4 1,574.5 1,334.8 448.9 511.0 1,111.3

 ............................. 1999 6,594.8 282.1 978.2 1,213.7 4,120.8 2,283.6 1,158.8 1,081.2 413.8 560.0 1,097.4 

Return on assets (%) .............................. 2003 1.38 0.96 1.19 1.46 1.42 1.25 1.37 1.36 1.55 1.41 1.66

 ............................. 2001 1.20 0.94 1.11 1.22 1.22 1.15 1.17 1.00 1.27 1.21 1.53

 ............................. 1999 1.23 1.03 1.27 1.44 1.18 1.12 1.24 1.27 1.49 1.23 1.33 

Net charge-offs to loans & leases (%) ...... 2003 0.80 0.25 0.29 0.59 0.98 1.19 0.59 0.66 1.04 0.38 0.67

 ............................. 2001 0.68 0.22 0.27 0.69 0.79 0.78 0.60 0.59 0.87 0.35 0.79

 ............................. 1999 

Noncurrent assets plus 

0.51 0.19 0.27 0.62 0.56 0.64 0.45 0.33 0.66 0.36 0.53 

OREO to assets (%) ............................ 2003 0.81 0.93 0.74 0.66 0.84 0.87 0.66 0.95 0.79 0.79 0.68

 ............................. 2001 0.79 0.78 0.66 0.73 0.83 0.76 0.86 0.85 0.75 0.77 0.67

 ............................. 1999 0.64 0.74 0.60 0.66 0.63 0.72 0.57 0.59 0.60 0.65 0.60 

Equity capital ratio (%) ............................ 2003 9.09 11.44 10.07 10.33 8.57 8.80 8.80 8.58 10.76 9.57 10.12

 ............................. 2001 8.72 11.37 9.98 9.25 8.19 8.41 9.06 8.15 9.78 9.34 8.93

 ............................. 1999 8.53 11.00 9.74 9.38 7.82 8.12 8.95 8.49 8.86 8.64 8.79 

* Regions:
 

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

Rhode Island, Vermont, U.S. Virgin Islands 

Atlanta - Alabama, Florida, Georgia, North Carolina, South Carolina, Virginia, West Virginia 

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

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

Dallas - Arkansas, Colorado, Louisiana, Mississippi, New Mexico, Oklahoma, Tennessee, Texas 

San Francisco - Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Pacific Islands, Utah, Washington, Wyoming 
TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

June 30, 2004 All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ...................................... 0.70 0.51 0.90 1.04 0.61 0.73 1.01 1.11 1.28 0.69 

Construction and development .................................... 0.63 0.00 3.23 1.19 0.64 0.67 0.74 1.13 1.25 0.43 

Commercial real estate ................................................ 0.49 0.15 2.67 1.01 0.48 0.40 0.31 0.68 1.08 0.36 

Multifamily residential real estate ................................. 0.26 0.00 0.64 0.29 0.30 0.12 0.09 0.56 0.81 0.32 

Home equity loans ....................................................... 0.34 0.42 0.18 0.62 0.34 0.29 0.45 0.40 0.47 0.35 

Other 1-4 family residential .......................................... 0.91 1.35 0.79 1.53 0.92 0.84 1.46 1.41 1.48 0.94 

Commercial and industrial loans ..................................... 0.68 2.26 0.60 1.47 0.81 0.87 1.24 1.47 1.51 0.39 

Loans to individuals ......................................................... 1.72 2.31 1.88 2.16 1.37 0.98 1.46 2.22 2.19 1.36 

Credit card loans .......................................................... 2.25 2.36 2.27 2.36 2.01 1.36 1.66 3.63 2.05 1.87 

Other loans to individuals ............................................. 1.39 1.75 1.68 2.15 1.30 0.93 1.42 2.11 2.20 1.27 

All other loans and leases (including farm) ..................... 0.33 0.00 0.36 0.69 0.64 0.47 0.39 0.46 0.62 0.15 

Total loans and leases .................................................... 

Percent of Loans Noncurrent** 

0.81 2.13 0.94 1.10 0.72 0.75 1.22 1.27 1.38 0.61 

All real estate loans ......................................................... 0.67 0.25 0.96 0.99 0.65 0.73 1.00 0.80 0.92 0.56 

Construction and development .................................... 0.60 0.32 3.30 0.97 0.52 1.19 0.95 1.30 0.85 0.57 

Commercial real estate ................................................ 0.81 0.35 1.90 1.14 0.77 0.74 1.19 0.79 1.32 0.82 

Multifamily residential real estate ................................. 0.27 0.00 1.77 0.97 0.28 0.17 0.72 0.40 1.13 0.27 

Home equity loans ....................................................... 0.18 0.15 0.09 0.15 0.19 0.14 0.24 0.43 0.22 0.18 

Other 1-4 family residential .......................................... 0.75 1.23 0.72 0.88 0.78 0.80 1.32 0.78 0.80 0.57 

Commercial and industrial loans ..................................... 1.61 1.34 3.62 1.79 1.10 1.37 1.54 1.62 1.55 1.38 

Loans to individuals ......................................................... 1.29 1.87 2.42 0.78 0.57 0.50 0.55 0.89 0.79 0.65 

Credit card loans .......................................................... 1.86 1.93 1.99 1.97 1.37 1.04 1.43 3.23 1.81 1.70 

Other loans to individuals ............................................. 0.94 1.20 2.65 0.74 0.48 0.43 0.36 0.70 0.73 0.48 

All other loans and leases (including farm) ..................... 0.44 0.00 0.41 0.98 0.61 0.52 2.79 0.81 0.65 0.34 

Total loans and leases .................................................... 

Percent of Loans Charged-off (net, YTD) 

0.89 1.70 1.81 1.09 0.73 0.73 0.86 0.91 0.95 0.69 

All real estate loans ......................................................... 0.07 0.10 0.04 0.05 0.10 0.04 0.25 0.03 0.08 0.07 

Construction and development .................................... 0.04 0.00 0.00 0.02 0.06 0.02 -0.21 -0.16 0.01 0.02 

Commercial real estate ................................................ 0.07 0.00 -0.32 0.08 0.09 0.04 0.15 0.00 0.12 0.03 

Multifamily residential real estate ................................. 0.03 0.00 0.15 0.13 0.05 -0.01 -0.03 0.00 0.02 0.02 

Home equity loans ....................................................... 0.12 0.10 0.00 0.03 0.15 0.05 0.33 0.11 0.05 0.12 

Other 1-4 family residential .......................................... 0.07 0.05 0.02 0.07 0.13 0.04 0.27 0.06 0.08 0.07 

Commercial and industrial loans ..................................... 0.62 4.28 0.72 0.35 0.59 0.55 2.14 0.29 0.49 0.46 

Loans to individuals ......................................................... 2.88 5.52 3.32 0.59 1.26 1.28 2.24 3.20 1.08 1.35 

Credit card loans .......................................................... 5.51 5.61 5.59 4.09 4.65 2.74 6.80 21.31 6.43 4.96 

Other loans to individuals ............................................. 1.23 4.28 2.02 0.48 0.91 1.07 1.29 1.51 0.73 0.72 

All other loans and leases (including farm) ..................... 0.20 0.00 0.10 0.00 0.40 0.10 0.50 0.10 0.20 0.10 

Total loans and leases .................................................... 

Loans Outstanding (in billions) 

0.60 5.10 1.10 0.10 0.30 0.10 1.30 0.50 0.30 0.30 

All real estate loans ......................................................... $3,428.6 $16.1 $130.2 $45.9 $1,371.0 $915.5 $61.9 $10.4 $60.6 $817.0 

Construction and development .................................... 299.4 0.0 1.8 2.6 214.1 21.0 1.7 0.9 3.2 54.1 

Commercial real estate ................................................ 718.2 0.1 7.2 11.7 487.7 44.5 7.3 3.0 14.5 142.1 

Multifamily residential real estate ................................. 160.7 0.0 1.4 0.8 93.1 44.0 0.6 0.4 1.1 19.1 

Home equity loans ....................................................... 415.8 14.5 14.8 0.8 143.1 76.8 17.0 0.4 2.7 145.6 

Other 1-4 family residential .......................................... 1,744.1 1.4 70.5 14.0 410.0 728.3 35.0 5.6 35.4 443.8 

Commercial and industrial loans ..................................... 926.6 6.1 142.2 12.4 426.9 27.9 10.3 1.8 9.1 289.8 

Loans to individuals ......................................................... 846.1 223.8 166.2 6.6 167.2 53.2 58.6 2.0 11.4 157.1 

Credit card loans .......................................................... 322.8 206.9 58.5 0.2 17.1 6.3 10.3 0.2 0.6 22.7 

Other loans to individuals ............................................. 523.3 16.9 107.6 6.4 150.0 46.8 48.4 1.9 10.8 134.4 

All other loans and leases (including farm) ..................... 584.9 7.3 177.3 20.9 107.7 8.5 1.5 0.8 5.8 255.2 

Total loans and leases .................................................... 

Memo: Other Real Estate Owned (in millions) 

5,786.2 253.2 615.9 85.8 2,072.8 1,005.0 132.3 15.1 87.0 1,519.1 

All other real estate owned .............................................. 4,954.8 7.9 184.7 147.4 2,580.2 808.4 135.6 28.3 163.1 899.3 

Construction and development .................................... 584.8 0.0 0.0 8.9 455.6 66.0 1.7 1.4 14.4 36.8 

Commercial real estate ................................................ 1,684.3 0.4 15.4 61.0 1,158.3 80.8 6.0 12.3 61.8 288.3 

Multifamily residential real estate ................................. 121.3 0.0 0.0 2.0 95.2 3.1 0.2 1.1 2.1 17.6 

1-4 family residential .................................................... 2,367.4 7.4 104.3 43.2 824.0 658.7 127.3 12.8 78.5 511.1 

Farmland ...................................................................... 103.9 0.0 0.0 32.3 50.7 0.0 0.5 0.6 6.6 13.1 

* See Table IV-A (page 8) for explanations.
 

** 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.
 
TABLE V-A. Loan Performances, All FDIC-Insured Institutions 

June 30, 2004 

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ............................. 0.70 1.19 0.77 0.49 0.72 0.63 0.60 0.91 0.72 0.86 0.63 

Construction and development ........................... 0.63 0.88 0.69 0.52 0.65 0.71 0.38 0.86 0.61 0.74 0.71 

Commercial real estate ....................................... 0.49 0.85 0.58 0.42 0.45 0.58 0.34 0.68 0.49 0.61 0.26 

Multifamily residential real estate ........................ 0.26 0.66 0.38 0.25 0.22 0.18 0.24 0.56 0.50 0.56 0.10 

Home equity loans .............................................. 0.34 0.59 0.41 0.40 0.32 0.28 0.31 0.42 0.38 0.39 0.20 

Other 1-4 family residential ................................. 0.91 1.65 1.07 0.59 0.92 0.70 0.88 1.30 1.03 1.20 0.82 

Commercial and industrial loans ............................ 0.68 1.55 1.04 1.00 0.54 0.59 0.52 0.72 0.75 0.88 1.03 

Loans to individuals ............................................... 1.72 2.36 1.84 2.05 1.66 1.79 1.69 1.54 2.00 1.42 1.63 

Credit card loans ................................................. 2.25 2.16 4.08 3.49 2.09 2.18 3.10 2.80 2.55 0.80 1.89 

Other loans to individuals ................................... 1.39 2.36 1.57 1.32 1.35 1.50 1.39 1.26 1.29 1.56 1.24 

All other loans and leases (including farm) ............ 0.33 0.73 0.59 0.42 0.30 0.37 0.13 0.39 0.31 0.72 0.36 

Total loans and leases ........................................... 

Percent of Loans Noncurrent** 

0.81 1.31 0.88 0.73 0.80 0.82 0.67 0.87 0.88 0.92 0.80 

All real estate loans ............................................... 0.67 0.98 0.68 0.65 0.67 0.60 0.43 1.02 0.57 0.81 0.70 

Construction and development ........................... 0.60 0.89 0.64 0.58 0.58 0.68 0.34 0.85 0.77 0.61 0.61 

Commercial real estate ....................................... 0.81 1.08 0.75 0.84 0.81 0.79 0.55 1.16 0.87 0.91 0.62 

Multifamily residential real estate ........................ 0.27 0.62 0.49 0.30 0.19 0.18 0.27 0.64 0.61 0.77 0.05 

Home equity loans .............................................. 0.18 0.23 0.22 0.23 0.16 0.14 0.13 0.27 0.21 0.18 0.09 

Other 1-4 family residential ................................. 0.75 0.97 0.69 0.64 0.77 0.56 0.49 1.30 0.46 0.85 0.87 

Commercial and industrial loans ............................ 1.61 1.72 1.20 1.23 1.73 2.42 1.26 1.34 1.07 1.08 1.18 

Loans to individuals ............................................... 1.29 0.95 0.76 0.98 1.38 1.84 0.82 0.65 1.45 0.55 1.11 

Credit card loans ................................................. 1.86 1.41 2.64 2.12 1.82 1.99 1.88 1.79 2.22 0.62 1.53 

Other loans to individuals ................................... 0.94 0.93 0.54 0.40 1.07 1.74 0.60 0.40 0.45 0.53 0.47 

All other loans and leases (including farm) ............ 0.44 1.07 0.80 0.55 0.40 0.49 0.37 0.34 0.39 1.14 0.71 

Total loans and leases ........................................... 

Percent of Loans Charged-off (net, YTD) 

0.89 1.09 0.76 0.76 0.93 1.16 0.61 0.95 0.76 0.84 0.80 

All real estate loans ............................................... 0.07 0.06 0.05 0.06 0.08 0.04 0.06 0.16 0.07 0.15 0.03 

Construction and development ........................... 0.04 0.07 0.05 0.04 0.04 0.01 0.02 0.07 0.06 0.10 0.00 

Commercial real estate ....................................... 0.07 0.06 0.06 0.07 0.08 0.02 0.06 0.13 0.08 0.11 0.04 

Multifamily residential real estate ........................ 0.03 0.04 0.08 0.03 0.02 0.03 0.01 0.10 0.02 0.20 -0.01 

Home equity loans .............................................. 0.12 0.09 0.05 0.12 0.13 0.02 0.13 0.22 0.12 0.18 0.03 

Other 1-4 family residential ................................. 0.07 0.07 0.05 0.06 0.08 0.03 0.06 0.19 0.06 0.19 0.03 

Commercial and industrial loans ............................ 0.62 0.47 0.48 0.54 0.66 0.56 0.55 0.53 0.55 0.75 1.17 

Loans to individuals ............................................... 2.88 0.77 1.64 2.57 3.07 3.47 1.69 1.75 4.16 1.02 3.44 

Credit card loans ................................................. 5.51 3.04 9.04 5.60 5.42 5.64 5.71 5.00 6.79 2.21 4.75 

Other loans to individuals ................................... 1.23 0.71 0.75 0.95 1.35 1.77 0.80 1.01 0.65 0.77 1.42 

All other loans and leases (including farm) ............ 0.15 0.13 0.24 0.18 0.14 0.11 0.12 0.22 0.12 0.33 0.17 

Total loans and leases ........................................... 

Loans Outstanding (in billions) 

0.60 0.20 0.20 0.40 0.70 0.90 0.30 0.40 0.80 0.40 0.60 

All real estate loans ............................................... $3,428.6 $88.9 $579.8 $572.1 $2,187.9 $792.5 $764.5 $634.8 $315.6 $239.3 $681.9 

Construction and development ........................... 299.4 9.0 78.1 71.0 141.3 34.7 93.7 64.6 27.0 40.5 38.9 

Commercial real estate ....................................... 718.2 25.2 204.7 171.3 317.1 144.1 170.7 156.0 71.7 75.1 100.5 

Multifamily residential real estate ........................ 160.7 2.1 26.0 37.7 94.8 42.1 19.3 28.4 8.2 6.4 56.2 

Home equity loans .............................................. 415.8 3.2 34.0 43.7 334.9 88.3 99.6 103.9 59.9 16.7 47.4 

Other 1-4 family residential ................................. 1,744.1 39.2 217.0 241.9 1,246.0 441.7 372.7 271.2 134.3 89.5 434.7 

Commercial and industrial loans ............................ 926.6 20.5 107.1 121.7 677.3 287.2 194.4 220.1 77.1 61.7 86.2 

Loans to individuals ............................................... 846.1 13.5 56.5 84.7 691.4 330.2 136.4 121.4 89.7 41.0 127.4 

Credit card loans ................................................. 322.8 0.3 6.0 28.6 287.9 141.4 24.1 22.4 50.6 7.5 76.8 

Other loans to individuals ................................... 523.3 13.2 50.5 56.1 403.5 188.9 112.3 99.0 39.0 33.5 50.6 

All other loans and leases (including farm) ............ 584.9 13.9 30.6 38.4 502.1 219.7 110.7 147.7 69.6 15.2 22.0 

Total loans and leases ........................................... 

Memo: Other Real Estate Owned (in millions) 

5,786.2 136.8 774.0 816.9 4,058.6 1,629.6 1,205.9 1,124.0 552.0 357.2 917.5 

All other real estate owned .................................... 4,954.8 325.0 1,369.1 839.8 2,420.9 592.0 968.5 1,342.7 580.7 875.6 595.3 

Construction and development ........................... 584.8 39.8 234.9 179.6 130.6 23.2 131.2 143.2 62.6 179.5 45.2 

Commercial real estate ....................................... 1,684.3 123.0 629.0 348.7 583.5 159.5 359.0 382.5 233.5 360.7 189.1 

Multifamily residential real estate ........................ 121.3 8.0 40.5 37.1 35.6 2.7 20.5 42.4 11.1 37.2 7.4 

1-4 family residential ........................................... 2,367.4 129.3 414.9 269.6 1,553.7 306.3 442.3 760.4 248.8 273.4 336.3 

Farmland ............................................................. 103.9 25.2 51.1 7.7 20.0 3.3 17.1 14.9 26.4 25.8 16.5 

* See Table IV-A (page 9) for explanations.
 

** 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 

Changes in Insurance Fund Balances 

(dollar figures in millions) Bank Insurance Fund 

2nd Qtr 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 

2004 2004 2003 2003 2003 2003 

Savings Association Insurance Fund 

2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 

2004 2004 2003 2003 2003 2003 

Beginning Fund Balance $34,164 $33,782 $33,462 $32,800 $32,382 $32,050 

Unrealized Gain (Loss) on 

Available-For-Sale Securities –332 175 –106 –45 38 103 

Provision for Insurance Losses –32 –37 –246 –543 –133 –6 

All Other Income, Net of Expenses 246 170 180 164 247 223 

Total Fund Balance Change –54 382 320 662 418 332 

Ending Fund Balance $34,110 $34,164 $33,782 $33,462 $32,800 $32,382 

12,394 $12,240 $12,186 $12,083 $11,906 $11,747 

–109 59 -37 -16 13 33 

–2 1 10 -26 -45 -21 

124 96 101 93 119 105 

17 154 54 103 177 159 

12,411 $12,394 $12,240 $12,186 $12,083 $11,906 

ALL FDIC-INSURED INSTITUTIONS SECOND QUARTER 2004 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE I-B. Selected Insurance Fund Indicators* 

(dollar figures in millions) 

Bank Insurance Fund 

Preliminary 

2nd Quarter 

2004 

1st Quarter 

2004 

2nd Quarter 

2003 

%Change 

03:6-04:6 

Reserve ratio (%)...................................................... 1.31 1.32 1.28 2.2 

Fund Balance ......................................................... $34,110 $34,164 $32,800 4.0 

Estimated insured deposits ......................................... 2,607,472 2,586,469 2,562,053 1.8 

SAIF-member Oakars............................................. 101,734 101,745 101,462 0.3 

BIF-members ......................................................... 2,505,738 2,484,724 2,460,590 1.8 

Assessment base ...................................................... 4,331,729 4,231,981 4,079,573 6.2 

SAIF-member Oakars............................................. 105,516 105,001 104,021 1.4 

BIF-members ......................................................... 

Savings Association Insurance Fund 

4,226,213 4,126,980 3,975,552 6.3 

Reserve ratio (%) ...................................................... 1.34 1.36 1.38 -2.8 

Fund Balance ......................................................... $12,411 $12,394 $12,083 2.7 

Estimated insured deposits .......................................... 926,198 914,475 876,305 5.7 

BIF-member Oakars ................................................ 426,763 419,049 399,328 6.9 

SAIF-member Sassers ............................................. 91,950 94,557 92,489 -0.6 

Other SAIF members ............................................. 407,485 400,869 384,488 6.0 

Assessment base ...................................................... 1,097,945 1,075,770 1,043,437 5.2 

BIF-member Oakars ................................................ 430,868 423,082 404,932 6.4 

SAIF-member Sassers ............................................. 117,593 120,319 115,782 1.6 

Other SAIF members ............................................. 549,484 532,369 522,723 5.1 

Insurance Fund Reserve Ratios* Fund Balances and Insured Deposits* 

Percent of Insured Deposits ($Millions) 

BIF BIF-Insured SAIF SAIF-Insured 

1.43 1.42 BIF Balance Deposits Balance Deposits 

1.40 SAIF 12/99 29,414 2,151,454 10,281 717,591 1.39 1.38 1.38 1.37 1.37 1.37 1.37 12/00 30,975 2,299,932 10,759 755,156 1.36 1.36 1.36 1.35 

12/99 12/00 12/01 3/02 6/02 9/02 12/02 3/03 6/03 9/03 12/03 3/04 6/04 

12/01 30,439 2,409,566 10,935 801,171 1.34 

1.32 1.32 1.32 3/02 30,697 2,495,498 11,049 810,902 1.31 

6/02 31,187 2,490,954 11,323 818,806 

Target 1.28 1.28 1.27 9/02 31,383 2,513,160 11,586 833,029 Ratio 1.26 1.25 1.25 12/02 32,050 2,524,474 11,747 859,205 1.25 1.23 3/03 32,382 2,531,307 11,906 867,908 

6/03 32,800 2,562,053 12,083 876,305 

9/03 33,462 2,542,822 12,186 872,121 

12/03 33,782 2,554,624 12,240 896,493 

3/04 34,164 2,586,469 12,394 914,475 

6/04 34,110 2,607,472 12,411 926,198 

* A reserve ratio is the fund balance as a percentage of estimated insured deposits. As with other Call Report items, prior 

periods may reflect adjustments. As a result, prior period reserve ratios may differ from previously reported values. Only year 

end fund balances are audited by GAO. Fund balances for the most recent period are unaudited. BIF-insured deposit totals 

include U.S. branches of foreign banks. 

TABLE II-B. Closed/Assisted Institutions 

(dollar figures in millions) 

2004** 2003** 2003 2002 2001 2000 1999 

BIF Members 

Number of institutions ...................................... 3 2 3 01 3 6 7 

Total assets ................................................... $151 $1,088 $1,097 $2,508 $54 $378 $1,490 

SAIF Members 

Number of institutions ...................................... 1 0 0 1 1 1 1 

Total assets ................................................... $15 $0 $0 $50 $2,200 $30 $71 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE III-B. Selected Indicators, By Fund Membership* 

(dollar figures in millions) 2004** 2003** 2003 2002 2001 2000 1999 

BIF Members 

Number of institutions reporting ........................... 7,913 8,078 7,996 8,125 8,327 8,572 8,835 

BIF-member Oakars ....................................... 764 775 764 801 766 743 744 

Other BIF-members ........................................ 7,149 7,303 7,233 7,324 7,561 7,829 8,091 

Total assets .................................................... $8,375,778 $7,768,253 $7,897,760 $7,335,568 $6,857,458 $6,510,744 $5,980,127 

Total deposits .................................................. 5,513,199 5,103,376 5,210,292 4,854,908 4,567,603 4,337,661 3,987,336 

Net income ..................................................... 55,448 52,306 106,183 92,507 76,488 73,430 73,952 

Return on assets (%) ......................................... 1.37 1.39 1.40 1.32 1.14 1.18 1.29 

Return on equity (%) ......................................... 14.80 15.20 15.21 14.32 12.91 13.86 15.11 

Noncurrent assets plus OREO to assets (%) .......... 0.61 0.82 0.76 0.91 0.89 0.72 0.62 

Number of Problem Institutions........................... 93 111 102 116 90 74 66 

Assets of problem institutions ............................. $25,145 $30,761 $28,812 $32,176 $31,881 $10,787 $4,450 

Number of failed/assisted institutions ................... 3 2 3 10 3 6 7 

Assets of failed/assisted institutions ..................... $150 $1,088 $1,097 $2,508 $54 $378 $1,490 

SAIF Members 

Number of institutions reporting ........................... 1,166 1,204 1,186 1,229 1,287 1,332 1,387 

SAIF-member Oakars ..................................... 141 142 143 133 130 122 123 

Other SAIF-members ..................................... 1,025 1,062 1,043 1,096 1,157 1,210 1,264 

Total assets .................................................... $1,272,809 $1,154,962 $1,177,458 $1,099,966 $1,011,736 $952,154 $903,532 

Total deposits .................................................. 770,443 741,353 744,022 713,599 621,824 577,100 550,703 

Net income ..................................................... 6,710.29 7,338.58 14,307.47 12,462.08 10,622.94 8,070.68 8,450.49 

Return on assets (%) ........................................ 1.11 1.30 1.25 1.17 1.11 0.89 0.99 

Return on equity (%) ......................................... 10.72 14.21 13.85 12.79 13.46 11.12 11.97 

Noncurrent assets plus OREO to assets (%) .......... 0.54 0.72 0.69 0.79 0.75 0.65 0.64 

Number of problem institutions ............................. 9 14 14 20 24 20 13 

Assets of problem institutions ............................. $755 $1,059 $1,105 $6,751 $7,923 $13,053 $5,524 

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

Assets of failed/assisted institutions ..................... $15 $0 $0 $50 $2,200 $30 $71 

* Excludes insured branches of foreign banks (IBAs). 

TABLE IV-B. Estimated FDIC-Insured Deposits by Fund Membership and Type of Institution 

(dollar figures in millions) 

June 30, 2004 

Commercial Banks and Savings Institutions 

Number of 

Institutions 

Total 

Assets 

Domestic 

Depostis* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks ..................... 7,691 8,048,367 4,499,012 2,347,638 436,835 2,784,472 

BIF-member ............................................. 7,582 7,879,567 4,390,952 2,317,278 383,112 2,700,390 

SAIF-member ............................................. 109 168,799 108,060 30,360 53,723 84,083 

FDIC-Supervised ....................................... 4,800 1,454,936 1,070,202 649,106 97,041 746,147 

OCC-Supervised ....................................... 1,960 4,596,494 2,444,170 1,256,875 253,424 1,510,299 

Federal Reserve-Supervised ........................ 931 1,996,938 984,640 441,657 86,369 528,026 

FDIC-Insured Savings Institutions ..................... 1,388 1,600,221 957,158 258,860 489,363 748,223 

OTS-Supervised Savings Institutions ............... 910 1,225,479 697,002 125,897 418,327 544,224 

BIF-member ............................................. 41 190,764 83,320 58,091 10,842 68,933 

SAIF-member ............................................. 869 1,034,716 613,682 67,805 407,485 475,290 

FDIC-Supervised State Savings Banks ............... 478 374,741 260,156 132,963 71,036 203,999 

BIF-member ............................................. 290 305,447 212,067 129,394 32,809 162,203 

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

Total Commercial Banks and 

188 69,294 48,089 3,569 38,227 41,796 

Savings Institutions .................................... 9,079 9,648,587 5,456,170 2,606,497 926,198 3,532,695 

BIF-member ................................................ 7,913 8,375,778 4,686,339 2,504,763 426,763 2,931,526 

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

Other FDIC-Insured Institutions 

1,166 1,272,809 769,831 101,734 499,435 601,169 

U.S. Branches of Foreign Banks ..................... 13 11,225 4,970 975 0 975 

Total FDIC-Insured Institutions ........................ 9,092 9,659,812 5,461,140 2,607,472 926,198 3,533,670 

* Excludes $827 billion in foreign office deposits, which are uninsured. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE V-B. Assessment Base Distribution and Rate Schedules 

BIF Assessment Base Distribution
 

Assessable Deposits in Billions as of June 30, 2004
 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2004
 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

7,343 

$4,048 

60 

$222 

2 

$0 

92.6% 

93.3% 

0.8% 

5.1% 

0.0% 

0.0% 

421 

$46 

4 

$1 

0 

$0 

5.3% 

1.1% 

0.1% 

0.0% 

0.0% 

0.0% 

84 

$16 

10 

$1 

2 

$1 

1.1% 

0.4% 

0.1% 

0.0% 

0.0% 

0.0% 

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

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

examinations. Capital group and supervisory risk subgroup assignments are made as of September 30 of the previous year for 

the first semiannual assessment period and March 31 of the current year for the second semiannual assessment period. 

SAIF Assessment Base Distribution
 

Assessable Deposits in Billions as of June 30, 2004
 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2004
 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

1,082 

$1,081 

7 

$2 

0 

$0 

92.8% 

98.5% 

0.6% 

0.2% 

0.0% 

0.0% 

65 5.6% 

$13 1.2% 

2 0.2% 

$0 0.0% 

0 0.0% 

$0 0.0% 

9 

$1 

0 

$0 

1 

$0 

0.8% 

0.1% 

0.0% 

0.0% 

0.1% 

0.0% 

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

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

examinations. Capital group and supervisory risk subgroup assignments are made as of September 30 of the previous year for 

the first semiannual assessment period and March 31 of the current year for the second semiannual assessment period. 

Assessment Rate Schedule 

Second Semiannual 2004 Assessment Period 

Cents per $100 of Assessable Deposits 

Supervisory Risk Subgroup 

Capital Group A B C 

1. Well-capitalized .................................... 0 3 17 

2. Adequately capitalized ........................... 3 10 24 

3. Undercapitalized .................................... 10 24 27 

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

Currently, the rate schedules are identical. 
Chart1 Industry Earnings Fail to Set New Record 

$ Billion 

30
 

20
 

10
 

0 

22.8 

18.1 

22.5 

20.1 

22.7 22.5 

20.9 22.0 

25.3 

27.2 27.3 

25.4 

29.5 30.2 30.4 31.0 31.8 31.2 

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

Net Operating Income 

Securities and Other Gains/Losses, Net 

2000 2001 2002 2003 2004
 

Chart2 Margins Continue to Decline at Larger Institutions 

Net Interest Margin 

5.5 

5.0 

4.5 

4.0 

3.5 

3.0 

3.63 

4.10 

3.81 

4.40 

Assets< $100 Million 

Assets> $100 Million 

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

2000 2001 2002 2003
 2004
 
Chart3 Growth in Home Equity Loans Continues to Accelerate 

Quarterly Change ($ Billions) 

40
 

30
 

20
 

10
 

0 

6 

9 8 

6 

4 

7 

13 

11 

15 

24 

17 16 

20 19 20 

31 30 

39 

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

2000 2001 2002 2003 2004
 

Chart4 C&I Loans Register First Increase in 14 Quarters 

Quarterly Change ($ Billions) 

20
 

10
 

0 

-10 

-20 

-30 

-40 

-4 

-17 -16 

-29 

-16 

-28 

-14 

-9 

-5 

-14 

-2 

-11 -11 

17 

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

2001 2002 2003 2004
 
Chart5 Small Business Loans Grew During Past 12 Months, 

While Larger Loans Declined 

12-Month Change ($ Billions) 

100 

80 

60 

40 

20 

0 

-20 

-40 

-60 

-80 

-100 

20 

45 

68 

75 78 

-15 

-85 

-28 

-11 

12 14 12 14 

23 

14 10 

-3 

9 

1996 1997 1998 1999 2000 2001 2002 2003 2004 

Small Business 

Medium-Large Business 

Chart6 Asset Quality Indicators Improve 

for 6th Consecutive Quarter 

Quarterly Change ($ Billions) 

10 

8 

6 

4 

2 

0 

-2 

-4 

-6 

-8 

1 

2 

3 

8 

2 

4 

5 

7 

1 

1 

4 

0.02 

-4 

-2 

-3 

-0.03 

-5 

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

-7 

Noncurrent Loans+ Net Charge-offs 

2000 2001 2002 2003 2004 
Chart7 

Chart8 

The Industry’s Noncurrent Loan Rate
 

Fell toa 20-Year Low
 

Percent Noncurrent 

4.5 

4.0 

3.5 

3.0 

2.5 

2.0 

1.5 

1.0 

0.5 

0.0 

Mergers Continue to Reduce the Number of Institutions 

Quarterly Change in the Number of Institutions 

100
 

50
 

0
 

-50
 

-100
 

-150
 

-200
 

-250
 

-300
 

-350
 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
 

4.15 

2.73 

0.89 

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004