Donna Tanoue, Chairman 

Fourth Quarter 1999 

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 

COMMERCIAL BANKING PERFORMANCE—FOURTH QUARTER, 1999 

 Full-Year Profits Surpass $70 Billion 

 Quarterly Earnings Are Third-Highest Ever 

 Annual ROA Exceeds 1.3 Percent For First Time 

 Profitability Gap Between Large, Small Banks Grows 

 Indicators Of Risk Continue To Rise 

Insured commercial banks reported fourthquarter earnings of $17.8 billion, bringing their 

profits for all of 1999 to a record $71.7 billion. 

It was the third-highest quarterly earnings ever 

posted by the industry, after the $19.4 billion 

banks earned in the third quarter of 1999 and 

the $18.0 billion they earned in the first quarter, 

and represented a 20.2-percent improvement 

over the $14.8 billion earned in the fourth quarter of 1998. The improvement in quarterly 

earnings was made possible by strong growth 

in noninterest income and by lower noninterest 

expenses, which outweighed a $1.3-billion 

decline in proceeds from securities sales. The 

average return on assets (ROA) for the quarter 

was 1.27 percent, up from 1.10 percent a year 

ago. More than half (54.3 percent) of all banks 

reported an ROA of 1 percent or higher for the 

quarter, and 53.1 percent of all banks reported 

a higher quarterly ROA than a year ago. For 

the second consecutive year, more than one 

out of ten banks (11.2 percent) were unprofitable in the fourth quarter. A year ago, 12.0 

percent of all banks reported a net loss in the 

fourth quarter. 

Noninterest expenses have been a key determinant of industry profitability in recent quarters. Charges related to mergers and 

restructurings elevated total noninterest 

expense to $54.8 billion in the fourth quarter, 

$4.7 billion (9.5 percent) above the level of the 

third quarter, which had few such expenses. 

This amount was nevertheless $200 million 

(0.3 percent) lower than a year ago. The bulge 

in noninterest expenses was partially offset by 

continued strength in noninterest revenues, 

particularly fee income. Banks’ noninterest revenues rose to $38.8 billion in the fourth quarter, up 

$1.8 billion (5 percent) from the third quarter, and 

$4.2 billion (12.1 percent) higher than a year 

ago. Noninterest income accounted for 44.1 percent of all net operating revenues (net interest 

income plus noninterest income) of commercial 

banks. 

QUARTERLY NET INCOME, 

1995–1999 $ Billions 

Securities and Other Gains, Net 19.4 Net Operating Income 18.0 17.8 17.0 

15.916.1 15.3 15.014.8 

13.8 14.5 14.614.7

13.8 13.7 13.2

12.0 12.0 11.1 12.0 

123 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 

1995 1996 1997 1998 1999 

Net interest income totaled $49.2 billion, an increase 

of $326 million (0.7 percent) from the third quarter, 

and $2.2 billion (4.7 percent) more than banks 

reported in the fourth quarter of 1998. In an environment of rising interest rates, the average net 

interest margin for the industry was down slightly (4 

basis points) from the previous quarter, as the rise in 

funding costs outpaced the increase in asset 

yields. In contrast with larger institutions, margins at 

banks with less than $100 million in assets improved 

Requests for copies of and subscriptions to the FDIC Quarterly Banking Profile should be made through the FDIC’s Public 

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

publicinfo@fdic.gov. 

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

the FDIC’s Institution Directory (I.D.) System on this Web site. 
from third-quarter levels (up 7 basis points). Higher QUARTERLY NET INTEREST MARGINS, 

interest rates also caused a further reduction in the 1995–1999 

value of banks’ securities portfolios. Sales of securi- Net Interest Margin (%) 

3.5 

4.0 

4.5 

5.0 

5.5 

Assets < $100 Million 

Assets > $100 Million 

4.56 

4.05 

1 234 1234 1234 1234 1234 

1995 1996 1997 1998 1999 

reduction in charge-offs was made possible by a 

$2.3-billion decline in the amount of credit-card loans 

charged off. This decline outweighed a $1.8-billion 

(51.4 percent) increase in commercial and industrial 

loan charge-offs during 1999. Noncurrent commercial and industrial loans also increased during 1999. 

Despite a small decline in the fourth quarter, noncurrent commercial and industrial loans were up by $2.6 

billion (28.8 percent) in 1999. The only other loan 

category to exhibit a decline in asset quality during 

1999 was agricultural production loans. The average 

charge-off rate on these loans rose to 0.32 percent in 

1999, from 0.22 percent in 1998. This is the highest 

annual charge-off rate for agricultural loans since 

1991. The percentage of agricultural loans that were 

noncurrent also increased during 1999, from 1.31 

percent to 1.44 percent. 

NONCURRENT LOAN RATES AT YEAR-END,* 

1990–1999 Percent of Loans 

0 

1 

2 

3 

4 

5 

6 

7 

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 

Loans to Individuals 

All Other Loans** 

Commercial and Industrial 

Total Real Estate 

ties, which yielded $1.1 billion in the fourth quarter of 

1998, produced a net loss of $276 million in the latest 

quarter. 

Full-year earnings were $9.9 billion (16.0 percent) 

higher than in 1998. The industry’s ROA for 1999 

was 1.31 percent, easily eclipsing the previous record 

of 1.23 percent set in 1997. Banks’ return on equity 

(ROE) matched the all-time high of 15.34 percent 

reached in 1993. Large banks experienced much of 

the improvement in profitability, as noninterest 

income registered strong growth, and noninterest 

expense growth was limited. Overseas earnings 

rebounded strongly in 1999, rising by $1.5 billion 

(29.3 percent), the largest year-to-year increase 

since 1992-93. Only 44.9 percent of banks reported 

higher ROAs in 1999 than in 1998. The average 

ROA at banks with less than $100 million in assets 

declined from 1.13 percent in 1998 to 1.01 percent in 

1999. The decline would have been greater but for 

the rising proportion of banks operating as 

Subchapter S corporations (see Notes to Users, p. 

21). For the first time since 1991, more than 10 percent of commercial banks with less than $100 million 

in assets were unprofitable. Small banks were hurt 

by both declining net interest margins and lower contributions from noninterest income in 1999. 

RETURN ON ASSETS (ROA) AND EQUITY (ROE), 

1934–1999 

ROA (%) ROE (%) 

34 39 44 49 54 59 64 69 74 79 84 89 94 99 

0 

0.5 

1.0 

1.5 

0 

5 

10 

15 

Return on Assets 

Return on Equity 

Asset-quality indicators showed few signs of deterioration in 1999, with the exception of loans to commercial and industrial borrowers. The percentage of 

all loans that were noncurrent (past due 90 days or 

more or in nonaccrual status) registered a small 

decline in 1999, from 0.96 percent to 0.94 percent, 

matching the lowest level seen in the 18 years that 

banks have reported noncurrent loan data. The percentage of loans charged off due to uncollectibility in 

1999 was lower than in 1998—0.61 percent, compared to 0.67 percent. The total dollar amount of 

loans charged off during 1999 was $391 million (1.9 

percent) below the amount charged off in 1998. The 

* Noncurrent loan rates represent the percentage of loans that are past due 

90 days or more or in nonaccrual status. 

** Includes loans to foreign governments, depository institutions and lease 

receivables. 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 Fourth Quarter 1999 
Shifts in balance sheet composition during 1999 suggest that the industry’s exposure to credit risk and 

interest rate risk has increased. The ratio of riskweighted assets to total assets rose from 77.5 percent to 79.2 percent during the year, implying 

heightened credit risk. Long-term assets, with 

remaining maturities of 5 years or longer, increased 

by $162 billion (15.8 percent) in 1999, accounting for 

55 percent of the $294-billion increase in total industry assets. On the funding side, volatile liabilities, 

which mature or reprice in less than a year, increased 

by $280 billion (16.3 percent), while core deposits, 

which tend to be more stable and lower-cost, rose by 

only $5 billion (0.2 percent). As a result of these 

shifts—toward less interest-sensitivity in banks’ 

assets and greater interest-sensitivity in their liabilities—banks ended the year more vulnerable to rising 

interest rates than they were at the beginning of the 

year. 

RECENT TRENDS IN COMMERCIAL BANKS’ 

BALANCE SHEETS, 1984–1999 

Percent of Total Assets 

10% 

21% 

35% 

35% 

54% 

47% 

80% 

79% 

1985 1987 1989 1991 1993 1995 1997 1999 

0 

20 

40 

60 

Risk-Weighted Assets 

(Data not available prior to 1990) 

Core Deposits 

Volatile Liabilities 

Long-term Assets (>5 yrs.) 

80 

Total assets of insured commercial banks increased 

by 5.4 percent in 1999, the lowest annual growth rate 

since 1992, and the second consecutive year that 

asset growth has slowed. In 1998, industry assets 

increased by 8.5 percent. Asset growth was led by 

real estate loans and commercial and industrial 

loans. Construction and development loans rose by 

27.0 percent in 1999, while multifamily residential real 

estate loans increased by 22.8 percent, loans 

secured by commercial real estate grew by 12.7 percent, and 1-4 family residential mortgage loans were 

up by 10.2 percent. Commercial and industrial loans 

grew by 8.1 percent in 1999, a slower pace than the 

13.0 percent growth registered in 1998. Consumer 

loans declined by 2.2 percent ($12.4 billion), as 

banks increased the amount of credit card loans 

securitized and sold off-balance-sheet by $33.8 billion. 

Deposits increased by only 4.1 percent in 1999, the 

smallest annual increase since 1993. In contrast, 

short-term nondeposit borrowings increased by 39.4 

FDIC Quarterly Banking Profile 

percent. Equity capital growth was an anemic 3.8 

percent in 1999, as the industry’s equity capital to 

assets ratio declined from 8.49 percent to 8.37 percent. Sharply higher dividends and depreciation in 

banks’ available-for-sale securities portfolios limited 

the increase in equity. Banks paid $51.9 billion in dividends in 1999, an increase of $10.9 billion (26.6 percent) from 1998. Even though net income reached a 

record high in 1999, retained earnings were $1.0 billion lower than in 1998. A negative swing in the value 

of banks’ available-for-sale securities produced a 

$19.3-billion subtraction from equity capital in 1999. 

If not for a $17.8-billion increase in goodwill and other 

intangible assets during the year, the industry’s equity capital would have declined by $113 million in 

1999. 

The number of insured commercial banks filing Call 

reports declined by 41 institutions in the fourth quarter, bringing the net reduction for all of 1999 to 194 

banks. During the quarter, there were 56 new bank 

charters, while 91 banks were absorbed by mergers, 

2 banks failed, 3 banks voluntarily relinquished their 

charters, and two banks did not file reports. Two savings institutions converted to commercial bank charters, while one commercial bank converted to a thrift 

charter. For the fourth consecutive year, the pace of 

industry consolidation slowed. There were 231 new 

commercial bank charters, the largest number since 

1986. Mergers absorbed 417 banks, the fewest 

since 1990, and 7 commercial banks failed in 1999. 

The number of commercial banks on the FDIC’s 

“Problem List” declined from 69 banks to 66 during 

the fourth quarter, while assets of “problem” commercial banks increased from $4.2 billion to $4.5 billion. 

At the end of 1999, “problem” bank assets represented 0.08 percent of the industry’s assets. 

ANNUAL NET CHARGE-OFF RATES ON LOANS, 

1990–1999 

Percent of Loans 

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0 

Total Real Estate 

Commercial and Industrial 

Loans to Individuals

All Other Loans* 

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 

* Includes loans to foreign governments, depository institutions and lease 

receivables. 

Fourth Quarter 1999 3 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

1999 1998 1997 1996 1995 1994 1993 

Return on assets (%)............................................. 1.31 1.19 1.23 1.19 1.17 1.15 1.20 

Return on equity (%)............................................. 15.34 13.93 14.69 14.45 14.66 14.61 15.34 

Core capital (leverage) ratio (%).............................. 7.80 7.54 7.56 7.64 7.61 7.64 7.65 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.63 0.65 0.66 0.75 0.85 1.01 1.61 

Net charge-offs to loans (%).................................... 0.61 0.67 0.64 0.58 0.49 0.50 0.85 

Asset growth rate (%)............................................. 5.40 8.50 9.54 6.16 7.53 8.21 5.72 

Net interest margin (%).......................................... 4.07 4.07 4.21 4.27 4.29 4.36 4.40 

Net operating income growth (%).............................. 20.63 2.27 12.47 6.43 7.48 16.18 35.36 

Number of institutions reporting.............................. 8,580 8,774 9,142 9,527 9,940 10,451 10,958 

Percentage of unprofitable institutions (%).................. 7.24 6.12 4.85 4.27 3.55 3.98 4.89 

Number of problem institutions................................. 66 69 71 82 144 247 426 

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

Number of failed/assisted institutions........................ 7 3 1 5 6 11 42 

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

(dollar figures in millions) 

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

Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

1999 1999 1998 98:4-99:4 

8,580 8,621 8,774 -2.2 

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

CONDITION DATA

... 1,656,508 1,633,242 1,627,050 1.8 

 Total assets..................................................................... $5,734,843 $5,512,476 $5,441,055 5.4

 Loans secured by real estate.......................................... 1,509,758 1,431,332 1,345,568 12.2

 Commercial & industrial loans.......................................... 971,129 947,886 898,662 8.1

 Loans to individuals...................................................... 558,465 530,573 570,876 -2.2

 Farm loans.................................................................. 45,276 46,537 46,247 -2.1

 Other loans & leases...................................................... 410,401 409,296 381,010 7.7

 Less: Unearned income................................................... 3,670 3,659 4,032 -9.0

 Total loans & leases......................................................... 3,491,359 3,361,964 3,238,331 7.8

 Less: Reserve for losses................................................... 58,757 58,289 57,274 2.6

 Net loans and leases...................................................... 3,432,603 3,303,675 3,181,057 7.9

 Securities........................................................................ 1,046,171 1,035,592 979,704 6.8

 Other real estate owned................................................... 2,792 2,920 3,150 -11.4

 Goodwill and other intangibles.......................................... 98,041 87,045 80,222 22.2

 All other assets............................................................... 1,155,236 1,083,244 1,196,923 -3.5 

Total liabilities and capital................................................... 5,734,843 5,512,476 5,441,055 5.4

 Noninterest-bearing deposits............................................. 703,090 689,656 719,952 -2.3

 Interest-bearing deposits.................................................. 3,127,686 3,017,854 2,961,492 5.6

 Other borrowed funds...................................................... 1,048,820 973,420 903,080 16.1

 Subordinated debt............................................................ 76,452 75,744 72,785 5.0

 All other liabilities............................................................ 298,920 286,784 321,577 -7.0

 Equity capital.................................................................. 479,875 469,018 462,169 3.8 

Loans and leases 30-89 days past due................................. 39,788 39,411 40,831 -2.6 

Noncurrent loans and leases................................................ 33,000 32,971 31,252 5.6 

Restructured loans and leases............................................. 1,145 1,313 1,848 -38.0 

Direct and indirect investments in real estate........................... 278 284 506 -45.1 

1-4 Family residential mortgages.......................................... 839,140 789,145 765,324 9.6 

Mortgage-backed securities................................................ 454,478 455,269 470,062 -3.3 

Earning assets.................................................................. 4,947,408 4,766,594 4,675,703 5.8 

Long-term assets (5+ years)................................................ 1,181,058 1,146,637 1,019,475 15.8 

Volatile liabilities............................................................... 2,003,960 1,839,068 1,723,790 16.3 

Foreign office deposits...................................................... 655,589 602,778 572,034 14.6 

FHLB Advances (Source: FHFB).......................................... 155,424 144,047 106,295 46.2 

Unused loan commitments................................................... 3,958,205 3,825,911 3,699,240 7.0 

Off-balance-sheet derivatives............................................. 34,883,219 36,252,328 33,380,216 4.5 

INCOME DATA 

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

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

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

Provision for credit losses.................................

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

Full Year Full Year 4th Quarter 4th Quarter %Change 

1999 1998 %Change 1999 1998 98:4-99:4 

$367,336 $362,024 1.5 $97,190 $91,581 6.1 

... 175,132 179,266 -2.3 47,942 44,558 7.6

... 192,204 182,758 5.2 49,248 47,022 4.7 

... 21,713 22,218 -2.3 6,144 5,808 5.8 

144,456 123,700 16.8 38,827 34,649 12.1 

... 204,176 194,117 5.2 54,758 54,950 -0.4 

184 3,127 -94.1 -276 1,055 N/M 

39,420 31,957 23.4 9,336 7,178 30.1 

... 169 507 -66.7 202 -9 N/M

71,703 61,800 16.0 17,763 14,781 20.2 

... 20,340 20,731 -1.9 6,019 5,801 3.8 

... 51,927 41,005 26.6 16,343 12,648 29.2

... 71,465 59,245 20.6 17,741 14,063 26.2 

N/M - Not meaningful 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 Fourth Quarter 1999 
 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE III-A. Full Year 1999, FDIC-Insured Commercial Banks 

FULL YEAR Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

... 8,580 5,157 3,029 318 76 678 1,450 1,858 2,205 1,456 933 

Total assets (in billions).................................... $5,734.8 $242.5 $754.6 $915.2 $3,822.5 $2,009.6 $1,531.7 $952.0 $389.6 $314.3 $537.7 

Total deposits (in billions).................................... 3,830.8 205.9 611.6 624.7 2,388.6 1,267.7 1,018.0 639.5 275.6 248.4 381.5 

Net income (in millions).................................... 71,703 2,389 9,780 12,853 46,681 23,454 19,252 11,673 5,596 3,487 8,241 

% of unprofitable institutions.............................. 7.2 10.5 2.4 1.3 1.3 10.2 12.4 5.2 3.2 6.5 11.9 

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

Performance ratios (%) 

63.1 57.2 71.4 76.1 77.6 68.3 66.1 63.3 59.9 58.3 69.2 

Yield on earning assets.................................... 7.78 7.94 8.08 7.98 7.65 7.67 7.67 7.60 8.16 7.59 8.64 

Cost of funding earning assets........................... 3.71 3.50 3.49 3.56 3.81 4.00 3.62 3.76 3.60 3.23 3.21 

Net interest margin.......................................... 4.07 4.44 4.59 4.42 3.84 3.67 4.05 3.84 4.56 4.36 5.42 

Noninterest income to earning assets.................. 3.06 1.45 1.83 2.93 3.47 4.09 2.50 2.26 2.73 1.61 3.66 

Noninterest expense to earning assets.................. 4.32 4.05 3.96 4.26 4.44 4.84 3.93 3.66 4.13 3.76 5.34 

Credit loss provision to assets.............................. 0.40 0.31 0.32 0.48 0.40 0.42 0.32 0.28 0.57 0.30 0.67 

Net operating income to assets........................... 1.30 1.02 1.34 1.50 1.27 1.24 1.27 1.27 1.54 1.17 1.63 

Return on assets............................................. 1.31 1.01 1.36 1.49 1.28 1.24 1.29 1.28 1.50 1.15 1.64 

Return on equity................................................ 15.34 9.07 14.24 16.02 15.97 15.76 14.75 15.46 16.94 13.18 15.54 

Net charge-offs to loans and leases..................... 0.61 0.37 0.36 0.68 0.66 0.79 0.45 0.37 0.75 0.46 0.95 

Credit loss provision to net charge-offs.................. 106.75 142.95 143.18 112.99 99.82 100.29 111.49 117.48 111.26 113.93 104.60 

Efficiency ratio................................................ 

Condition Ratios (%) 

58.66 68.01 60.82 55.73 58.46 60.59 57.57 58.59 55.45 61.26 56.10 

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

Loss allowance to: 

... 86.27 91.17 91.25 89.76 84.14 83.00 86.90 89.36 90.35 88.82 86.74 

Loans and leases.......................................... 1.68 1.41 1.45 1.82 1.71 1.93 1.53 1.37 1.67 1.32 2.16 

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

Noncurrent assets plus 

178.05 157.49 192.43 220.63 168.20 152.73 186.33 182.72 213.84 143.84 252.01 

other real estate owned to assets..................... 0.63 0.65 0.57 0.58 0.66 0.71 0.58 0.56 0.59 0.61 0.67 

Equity capital ratio............................................. 8.37 10.68 9.26 9.09 7.87 7.71 8.60 8.03 8.86 8.53 10.30 

Core capital (leverage) ratio................................. 7.80 10.88 9.22 8.49 7.14 7.54 7.57 7.69 8.47 8.19 8.87 

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

Structural Changes 

89.61 69.61 77.65 91.19 93.98 81.03 96.47 98.75 95.03 71.95 92.02 

New Charters................................................ 231 221 8 1 1 30 89 34 22 23 33 

Banks absorbed by mergers.............................. 417 221 164 27 5 45 104 73 84 68 43 

Failed banks................................................ 

PRIOR FULL YEARS

 (The way it was...) 

7 4 2 1 0 0 3 0 0 2 1 

Number of institutions................................1998 8,774 5,409 2,973 321 71 693 1,445 1,904 2,265 1,517 950 

...............................................1996 9,527 6,203 2,926 325 73 743 1,577 2,109 2,401 1,683 1,014 

...............................................1994 10,451 7,259 2,800 328 64 834 1,741 2,272 2,622 1,857 1,125 

Total assets (in billions).............................1998 $5,441.1 $252.4 $726.8 $921.7 $3,540.2 $1,920.9 $1,211.5 $889.3 $376.5 $304.7 $738.2 

................................................1996 4,578.3 280.0 713.5 1,002.4 2,582.5 1,730.7 805.4 716.8 297.2 334.4 693.8 

................................................1994 4,010.5 315.9 682.9 1,072.3 1,939.4 1,545.0 646.1 659.6 262.3 304.6 593.0 

Return on assets (%)................................1998 1.19 1.13 1.31 1.52 1.08 1.06 1.30 1.25 1.50 1.13 1.11 

................................................1996 1.19 1.16 1.28 1.31 1.12 1.10 1.22 1.21 1.43 1.22 1.24 

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

Net charge-offs to loans & leases (%) 

1.15 1.12 1.19 1.31 1.06 1.07 1.18 1.13 1.46 1.12 1.24 

................................................1998 0.67 0.31 0.40 1.02 0.65 0.91 0.43 0.44 0.74 0.43 0.87 

................................................1996 0.58 0.27 0.42 0.89 0.52 0.63 0.45 0.44 0.70 0.35 0.79 

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

Noncurrent assets plus 

0.50 0.25 0.37 0.54 0.57 0.75 0.27 0.29 0.46 0.16 0.58 

OREO to assets (%)..............................1998 0.65 0.71 0.62 0.71 0.64 0.78 0.55 0.56 0.57 0.59 0.67 

................................................1996 0.75 0.77 0.74 0.85 0.71 0.84 0.68 0.57 0.65 0.61 0.88 

................................................1994 1.01 0.86 0.92 0.90 1.13 1.28 0.72 0.66 0.68 0.67 1.33 

Equity capital ratio (%)..............................1998 8.49 10.95 9.52 9.46 7.86 7.81 9.10 8.27 8.72 8.83 9.29 

................................................1996 8.20 10.54 9.44 8.77 7.38 7.36 8.48 8.43 8.74 8.74 9.22 

................................................1994 7.78 9.83 8.79 7.94 7.01 7.33 7.84 7.87 8.43 8.15 8.33 

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 

Fourth Quarter 1999 5 FDIC-Insured Commercial Banks 
TABLE IV-A. Fourth Quarter 1999, FDIC-Insured Commercial Banks 

FOURTH QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

8,580 5,157 3,029 318 76 678 1,450 1,858 2,205 1,456 933 

Total assets (in billions).................................... $5,734.8 $242.5 $754.6 $915.2 $3,822.5 $2,009.6 $1,531.7 $952.0 $389.6 $314.3 $537.7 

Total deposits (in billions)................................. 3,830.8 205.9 611.6 624.7 2,388.6 1,267.7 1,018.0 639.5 275.6 248.4 381.5 

Net income (in millions).................................... 17,763.1 522.8 2,454.8 3,186.1 11,599.4 5,837.3 4,871.7 2,953.5 1,344.1 767.2 1,989.3 

% of unprofitable institutions.............................. 11.2 15.9 4.1 3.8 6.6 12.5 14.4 8.1 9.8 12.0 13.5 

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

Performance Ratios (annualized, %) 

60.9 57.6 65.9 67.0 65.8 60.6 61.9 61.1 60.0 58.7 64.8 

Yield on earning assets.................................... 8.04 8.15 8.24 8.23 7.94 7.72 8.27 7.74 8.30 7.86 8.98 

Cost of funding earning assets........................... 3.97 3.59 3.62 3.78 4.12 4.07 4.14 4.00 3.72 3.37 3.60 

Net interest margin.......................................... 4.08 4.56 4.62 4.46 3.83 3.65 4.13 3.74 4.58 4.49 5.39 

Noninterest income to earning assets.................. 3.21 1.57 1.86 3.00 3.68 4.19 2.59 2.32 2.85 1.66 4.45 

Noninterest expense to earning assets.................. 4.53 4.48 4.10 4.39 4.67 5.00 4.14 3.65 4.28 3.95 6.18 

Credit loss provision to assets........................... 0.44 0.32 0.38 0.55 0.43 0.46 0.35 0.30 0.63 0.41 0.77 

Net operating income to assets........................... 1.27 0.89 1.25 1.47 1.25 1.20 1.26 1.26 1.48 1.10 1.52 

Return on assets............................................. 1.27 0.87 1.32 1.42 1.25 1.21 1.29 1.26 1.41 0.99 1.53 

Return on equity............................................. 15.03 8.04 14.06 15.51 15.73 15.47 14.95 15.46 15.86 11.47 14.58 

Net charge-offs to loans and leases..................... 0.70 0.42 0.47 0.81 0.75 0.88 0.59 0.42 0.81 0.60 0.98 

Credit loss provision to net charge-offs.................. 102.08 126.47 129.06 108.29 95.90 98.68 90.26 104.19 114.05 119.01 116.70 

Efficiency ratio................................................ 

Structural Changes (QTR) 

60.12 72.41 62.26 56.36 59.98 61.99 59.12 58.61 56.23 62.32 60.00 

New charters................................................ 56 52 4 0 0 6 19 9 5 5 12 

Banks absorbed by mergers........................... 91 36 46 6 3 8 12 27 21 13 10 

Failed banks................................................ 

PRIOR FOURTH QUARTERS

 (The way it was...) 

2 1 1 0 0 1 0 0 0 0 1 

Return on assets (%)................................1998 1.10 0.83 1.19 1.36 1.04 1.01 1.37 1.09 1.46 0.99 0.80

 .................................................1996 1.21 0.97 1.28 1.42 1.14 1.17 1.26 1.28 1.39 1.20 1.12

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

Net charge-offs to loans & leases (%)

1.07 0.98 1.13 1.20 1.00 0.95 1.09 1.05 1.31 1.00 1.34 

 .................................................1998 0.73 0.49 0.55 1.11 0.67 0.95 0.52 0.57 0.81 0.56 0.80

 .................................................1996 0.64 0.42 0.56 1.01 0.52 0.67 0.53 0.53 0.84 0.48 0.79

 .................................................1994 0.55 0.40 0.49 0.62 0.54 0.74 0.38 0.39 0.56 0.26 0.59 

NUMBER OF COMMERCIAL BANKS WITH FHLB 

ADVANCES,* 1991–1999 

Number of Banks 

4,000 

3,200 

2,400 

1,600 

800 

0 

3,657 

AMOUNT OF FHLB ADVANCES OUTSTANDING,* 

1991–1999 

$ Billions 

160 

120 

80 

40 

0 

$2 $6 

$16 

$26 

$33 $38 

$60 

$106 

$155 

1991 1992 1993 1994 1995 1996 1997 1998 1999 1991 1992 1993 1994 1995 1996 1997 1998 1999 

* Source: FHFB * Source: FHFB 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 6 Fourth Quarter 1999 
TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

December 31, 1999 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 1.09 1.20 0.90 0.90 1.23 1.13 1.21 1.09 0.94 1.10 0.77 

Construction and development........................... 0.98 0.73 0.76 1.06 1.08 0.83 0.82 1.35 0.93 1.14 0.98 

Commercial real estate.................................... 0.69 0.83 0.60 0.66 0.73 0.73 0.61 0.89 0.74 0.75 0.46 

Multifamily residential real estate........................ 0.58 0.75 0.48 0.46 0.64 0.51 0.46 1.01 0.68 0.58 0.31 

Home equity loans.......................................... 0.75 0.71 0.63 0.74 0.78 0.75 0.82 0.81 0.65 0.70 0.48 

Other 1-4 Family residential.............................. 1.43 1.65 1.28 1.09 1.56 1.34 1.67 1.26 1.13 1.49 1.26 

Commercial and industrial loans*........................... 0.80 1.32 1.12 1.03 0.65 0.55 0.70 1.05 1.29 1.15 0.97 

Loans to individuals............................................. 2.33 2.33 2.18 2.35 2.35 2.53 2.36 2.32 2.41 1.70 1.99 

Credit card loans............................................. 2.59 2.01 3.84 2.78 2.44 2.75 2.93 2.25 2.89 1.15 1.98 

Other loans to individuals................................. 2.17 2.34 1.84 2.02 2.30 2.31 2.17 2.33 1.96 1.72 2.01 

All other loans and leases (including farm)............... 0.55 N/A N/A 0.85 0.55 0.48 0.33 0.92 0.50 0.55 0.62 

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

Percent of Loans Noncurrent** 

... 0.52 0.52 0.30 0.26 0.55 0.27 0.19 2.11 1.02 0.63 0.25 

All real estate loans............................................. 0.79 0.73 0.59 0.70 0.89 1.01 0.77 0.71 0.57 0.85 0.62 

Construction and development........................... 0.67 0.51 0.50 0.66 0.77 0.93 0.73 0.55 0.47 0.56 0.66 

Commercial real estate.................................... 0.77 0.72 0.61 0.72 0.90 0.98 0.73 0.78 0.64 1.01 0.56 

Multifamily residential real estate........................ 0.42 0.64 0.43 0.48 0.38 0.41 0.37 0.50 0.29 0.44 0.46 

Home equity loans.......................................... 0.31 0.42 0.31 0.39 0.28 0.38 0.25 0.34 0.28 0.32 0.25 

Other 1-4 Family residential.............................. 0.82 0.69 0.61 0.75 0.92 0.90 0.88 0.75 0.51 0.76 0.77 

Commercial and industrial loans*........................... 1.18 1.28 1.11 0.93 1.17 1.40 1.01 0.98 1.06 1.52 1.17 

Loans to individuals............................................. 1.42 0.79 0.88 1.13 1.65 2.23 0.94 0.76 1.26 0.52 1.18 

Credit card loans............................................. 2.05 1.38 2.56 1.84 2.09 2.45 1.71 1.17 1.96 0.67 1.66 

Other loans to individuals................................. 1.03 0.76 0.54 0.60 1.33 2.01 0.70 0.69 0.61 0.51 0.37 

All other loans and leases (including farm)............... 0.39 N/A N/A 0.44 0.40 0.38 0.38 0.42 0.36 0.36 0.44 

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

Percent of Loans Charged-off 

... 0.37 0.27 0.44 0.54 0.35 0.12 0.53 0.37 0.19 0.30 0.58 

All real estate loans............................................. 0.08 0.05 0.05 0.08 0.10 0.06 0.11 0.07 0.10 0.09 0.06 

Construction and development........................... 0.04 0.10 0.04 0.07 0.02 -0.02 0.07 0.02 0.04 0.03 0.05 

Commercial real estate.................................... 0.03 0.05 0.04 0.04 0.02 -0.02 0.06 0.02 0.05 0.10 -0.02 

Multifamily residential real estate........................ 0.01 0.06 0.04 0.00 0.01 0.01 0.02 0.03 0.04 -0.03 0.01 

Home equity loans.......................................... 0.15 0.04 0.05 0.16 0.17 0.14 0.16 0.18 0.15 0.49 0.05 

Other 1-4 Family residential.............................. 0.11 0.05 0.06 0.11 0.13 0.08 0.13 0.09 0.15 0.09 0.16 

Commercial and industrial loans*........................... 0.57 0.47 0.45 0.62 0.56 0.59 0.57 0.38 0.47 0.77 0.88 

Loans to individuals............................................. 2.32 1.30 1.58 2.40 2.49 2.85 1.70 1.39 2.89 1.02 3.18 

Credit card loans............................................. 4.45 5.01 5.74 4.60 4.29 4.48 4.04 4.13 5.23 2.50 4.41 

Other loans to individuals................................. 1.04 0.65 0.67 0.87 1.22 1.30 0.99 0.87 0.82 0.95 1.00 

All other loans and leases (including farm)............... 0.26 N/A N/A 0.31 0.27 0.23 0.19 0.32 0.33 0.34 0.38 

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

Loans Outstanding (in billions) 

... -0.01 0.64 0.10 0.01 -0.02 -0.11 0.03 0.03 0.14 0.09 -0.04 

All real estate loans............................................. $1,509.8 $83.0 $304.7 $297.5 $824.5 $339.9 $511.3 $290.4 $120.8 $83.7 $163.7 

Construction and development........................... 135.6 6.7 31.5 32.0 65.5 13.7 50.8 26.0 12.0 10.9 22.1 

Commercial real estate.................................... 417.5 23.2 110.5 97.5 186.3 73.0 123.7 87.9 33.3 31.7 67.9 

Multifamily residential real estate........................ 53.1 1.8 10.3 11.3 29.8 13.7 14.7 10.3 3.5 2.6 8.4 

Home equity loans.......................................... 102.3 1.9 12.8 18.3 69.3 23.4 35.2 25.5 5.6 1.2 11.5 

Other 1-4 Family residential.............................. 736.8 38.7 127.1 134.5 436.5 185.9 277.7 132.8 56.5 33.8 50.1 

Commercial and industrial loans........................... 971.1 24.8 87.1 127.5 731.8 324.5 268.2 183.1 60.0 46.9 88.6 

Loans to individuals............................................. 558.5 20.2 64.8 119.3 354.3 204.1 119.3 78.2 50.1 33.0 73.8 

Credit card loans............................................. 212.0 0.8 10.9 51.4 148.9 101.5 28.6 10.5 24.1 1.3 46.0 

Other loans to individuals................................. 346.5 19.3 53.9 67.9 205.3 102.6 90.7 67.7 26.0 31.7 27.8 

All other loans and leases (including farm)............... 455.7 17.8 26.2 36.6 375.1 180.8 99.4 88.9 35.5 17.8 33.2 

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

Memo: Other Real Estate Owned (in millions) 

... 37.8 0.2 1.0 3.1 33.4 10.9 14.1 4.4 2.5 1.4 4.5 

All other real estate owned.................................... $2,792.0 $276.2 $669.5 $438.1 $1,408.1 $831.7 $768.0 $346.4 $199.4 $250.5 $396.0 

Construction and development........................... 215.3 26.3 87.9 41.3 59.7 40.5 81.8 19.9 20.3 17.9 34.8 

Commercial real estate.................................... 1,223.4 120.7 303.8 199.9 598.9 354.6 322.6 128.5 71.5 127.9 218.2 

Multifamily residential real estate........................ 45.3 7.9 17.3 10.4 9.7 14.1 5.3 7.7 4.3 3.9 10.0 

1-4 Family residential....................................... 1,026.2 88.8 226.1 179.7 531.6 220.9 349.7 181.7 73.0 80.2 120.6 

Farmland...................................................... 81.2 32.5 34.4 5.9 8.4 2.7 8.6 8.5 30.1 20.6 10.7 

Other real estate owned in foreign offices............ 200.6 0.0 0.0 0.9 199.7 198.9 0.0 0.0 0.0 0.0 1.7 

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

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

FDIC Quarterly Banking Profile 

Fourth Quarter 1999 7 FDIC-Insured Commercial Banks 
SAVINGS INSTITUTION PERFORMANCE—FOURTH QUARTER, 1999 

 Fourth-Quarter Earnings Decline Slightly To $2.7 Billion 

 1999 Profits Set New Record At $10.9 Billion 

 Asset Quality Continues To Improve With Record Low Charge-Offs 

 Industry Has 37 New Entrants, The Highest Since 1986 

FDIC-insured savings institutions reported earnings of $2.7 billion for the fourth quarter, which was 

down by $132 million from the third quarter and up 

by $678 million from a year ago. The average 

return on assets (ROA) was 0.96 percent this quarter, down from 1.00 percent last quarter and up 

from 0.76 percent a year ago. Higher interest 

costs in the fourth quarter led to a $94-million 

decline in net interest income from the level of the 

third quarter. Noninterest income rose by $160 

million, but this improvement was more than offset 

by a $162-million increase in noninterest expenses. Gains on the sales of securities during the 

fourth quarter, at $150 million, were the lowest 

quarterly amount since 1995. A year ago, when 

interest-rate conditions were more favorable for 

securities values, security sales yielded gains of 

$557 million. Over half (55 percent) of savings 

institutions showed improved quarterly earnings 

from a year ago, but more than 10 percent were 

unprofitable. 

QUARTERLY NET INCOME, 1995–1999 

$ Billions 

Securities and Other Gains, Net 

Net Operating Income 

2.2 

1.9 

1.7 1.8 

2.6 2.5 

2.2 

-0.0 

2.4 2.4 2.3 

2.0 

3.0 2.8 

2.6 

2.0 

2.9 2.8 2.7 2.7 

1234 1234 1234 1234 1234 

1995 1996 1997 1998 1999 

Full-year earnings of $10.9 billion were the highest 

ever for the thrift industry, surpassing the results 

for 1998 by $736 million (7 percent). Thrifts posted an aggregate ROA of 1.00 percent, which was 

just one basis point lower than the recent high of 

1.01 percent registered in 1998. Before 1998, the 

industry had gone more than 50 years without 

achieving an ROA of 1.00 percent or better. The 

aggregate return on equity (ROE) was 11.74 percent, the highest since 1985 when the industry’s 

equity capital stood at just 3.52 percent of assets. 

Net interest margins have changed very little over 

the past two years, remaining at 3.10 percent, but 

loan growth has generated a $2-billion increase in 

net interest income. While higher interest rates 

have not significantly affected margins, gains from 

the sales of securities were over $1 billion lower 

than in the previous year. Improvements in asset 

quality led to a $217-million decline in provisions 

for loan losses, while net charge-offs on loans 

declined $269 million. Net charge-offs averaged 

0.17 percent of loans for the year, down from 0.22 

percent last year and down from a peak of 0.65 

percent in 1991. 

ANNUAL NET CHARGE-OFF RATES ON LOANS, 

1990–1999 

Percent of Loans 

Total Real Estate 

Commercial and Industrial 

Loans to Individuals 

Total Loans 

0.0 

0.5 

1.0 

1.5 

2.0 

2.5 

3.0 

3.5 

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 

Owing to relatively strong growth in net interest 

income and noninterest income, combined with 

modest growth in noninterest expenses, core earnings rose and operating efficiency improved in 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 Fourth Quarter 1999 
 

1999. Net operating income, which excludes gains 

on the sales of securities and extraordinary items, 

improved by $1.4 billion (17 percent) to $9.9 billion 

or 0.91 percent of assets. By keeping operating 

expenses under control while revenues grew, the 

efficiency ratio, which measures the proportion of 

net operating revenue that is absorbed by overhead expenses, improved to 56.40 percent from 

59.41 percent in 1998. 

ANNUAL EFFICIENCY RATIOS,* 

1989–1999 

Efficiency Ratio (%) 

60 

70 

80 

90 

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 

Assets >$100 Million 

Assets <$100 Million 

55.69 

76.63 

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

net interest income plus noninterest income. 

With interest rates rising during the quarter, the 

cost of funding earning assets rose faster (by 15 

basis points) than the yield on earning assets (up 

by 11 basis points). As a result, net interest margins declined by 4 basis points to 3.04 percent for 

the fourth quarter. A year ago, the average net 

interest margin was 3.05 percent. 

QUARTERLY NET INTEREST MARGINS, 

1995–1999 

Net Interest Margin (%) 

2.5 

3.0 

3.5 

4.0 

4.5 

Assets < $100 Million 

Assets > $100 Million 3.03 

3.47 

1 2 3 4 1 2 3 4 123412341234 

1995 1996 1997 1998 1999 

Small savings institutions, with assets below $100 

million, reported an ROA of 0.48 percent for the 

fourth quarter, which was the lowest since SAIFinsured institutions had to pay a special assessment in the third quarter of 1996. Historically, 

earnings in the fourth quarter are lower than in 

other quarters, but profits were particularly poor for 

this group in the last quarter of 1999, because of 

lower noninterest income. For the full year, ROA 

was 0.63 percent, down from 0.77 percent in 1998. 

A 5-basis-point decline in the average net interest 

margin was a major factor in the decline in profitability. Because these institutions do not have the 

ability to generate much fee income, they rely 

heavily on net interest income for earnings. 

Approximately 17 percent of institutions in this 

group reported losses for the quarter and nearly 15 

percent reported losses for the year. 

One of the broadest measures of asset quality, 

noncurrent assets—assets 90 days or more past 

due, or in nonaccrual status—plus other real estate 

owned, declined from 0.72 percent of assets to 

0.58 percent during 1999. This is the lowest level 

reported by thrifts since consistent measures of 

noncurrent loans became available in 1990. 

Noncurrent loans declined by $166 million in the 

fourth quarter and other real estate owned 

declined by $103 million. Reserves for loan losses 

also fell (by $118 million), but the coverage ratio— 

loan-loss reserves to noncurrent loans—bounced 

back to $1.24 in reserves for each dollar of noncurrent loans from $1.23 last quarter. 

COVERAGE RATIO* AND RESERVE LEVELS, 

1996–1999 

$ Billions Coverage Ratio (%) 

0 

6 

12 

18 

24 

30 

Noncurrent Loans ($) 

Loan-Loss Reserves ($) 

0 

20 

40 

60 

80 

100 

120 

140 

Coverage Ratio (%) 

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

1996 1997 1998 1999 

*Loan-loss reserves to noncurrent loans. 

FDIC Quarterly Banking Profile 

Fourth Quarter 1999 9 FDIC-Insured Savings Institutions 
The industry has had asset growth of approximately 6 percent in each of the past two years, 

which is the strongest growth since 1988. Assets 

grew by $5.6 billion in the fourth quarter. During 

the quarter one large organization securitized 

$12 billion in 1-4 family residential mortgages and 

retained the securities.1 Overall, this contributed 

to a $12.3-billion decline in home mortgages and 

an $8.2-billion increase in mortgage backed securities. Deposits, which had declined earlier in the 

year, increased by $9.3 billion in the fourth quarter, 

giving the industry a full-year increase in deposits 

of $2.2 billion. Federal Home Loan Bank (FHLB) 

advances also grew in the fourth quarter, by $17.7 

billion. The industry increased its reliance on 

FHLB advances from 20 percent of liabilities to 

almost 24 percent during the year. Thrifts now hold 

$231 billion in FHLB advances and $707 billion in 

deposits. 

Equity capital of $95 billion was just $450 million 

higher than a year ago. With little change in equity and growth in assets, the equity capital ratio 

declined to 8.27 percent at year-end from 8.68 percent at the beginning of the year. This is the lowest point for this ratio since 1996 when the industry 

had to pay a special assessment on SAIF-insured 

deposits. Equity capital includes the unrealized 

gains or losses on available-for-sale (AFS) securities, which swung from a gain of over $2 billion to 

a loss of $2.6 billion during the year as interest 

rates rose. In the fourth quarter alone, the value of 

these securities declined by over $1 billion. In contrast, the core capital (leverage) ratio does not 

include the value of these securities and this ratio 

increased slightly (by 1 basis point) during the year 

to 7.86 percent of average assets. 

The industry added 37 de novo institutions during 

the year, but mergers continued to reduce the 

number of thrifts. This year had the highest number of de novo charters since 1986. An additional 

charter was issued to absorb another charter during the year for a total of 38 new charters. There 

1 Washington Mutual, Inc., of Seattle, Washington, securitized 

approximately $12 billion in single-family residential mortgages 

and kept the investment securities during the fourth quarter. 

RISK-BASED CAPITAL RATIOS, 

1993–1999 Ratios (%) 

6 

10 

12 

14 

16 

18 

1993 1994 1995 1996 1997 1998 1999 

Total Risk-Based Capital 

Tier 1 Risk-Based Capital 

Equity to Assets 

Core Capital (Leverage) 

8 

4 

were 1,640 active charters at the end of the year, 

down from 1,689 at the beginning of the year. 

During the fourth quarter 9 thrifts began operations. Commercial banks absorbed 11 thrifts with 

$29.3 billion in assets in the fourth quarter, bringing 

the total number of thrifts merged into commercial 

banks in 1999 to 46. Two thrifts with $194 million 

in assets converted their charters to commercial 

bank charters this quarter, joining a dozen other 

conversions earlier in the year. Within the industry, 

5 thrifts with $6.6 billion in assets merged into other 

thrifts during the fourth quarter; the total for the 

year was 34 mergers. No thrifts failed in the fourth 

quarter, but one did fail earlier in the year. Charter 

changes that do not affect the count of institutions 

include mutual-to-stock conversions. During the 

fourth quarter 8 thrifts with $3.5 billion in assets 

made this conversion, which brings the total to 39 

for the year. At year-end 1999, there were 740 

mutually owned thrifts and 900 thrifts owned by 

stockholders. The number of “problem” thrifts 

increased to 13 from 11 thrifts last quarter, but was 

lower than the 15 thrifts in this group at the end of 

1998. Assets of “problem” thrifts increased to $5.5 

billion from $3.9 billion last quarter, but were down 

slightly from $5.9 billion at the end of 1998. Assets 

of “problem” thrifts accounted for less than one half 

of one percent (48 basis points) of the industry at 

year-end. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Fourth Quarter 1999 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE I-B. Selected Indicators, FDIC-Insured Savings Institutions* 

1999 1998 1997 1996 1995 1994 1993 

Return on assets (%)............................................. 1.00 1.01 0.93 0.70 0.77 0.66 0.71 

Return on equity (%)............................................. 11.74 11.35 10.84 8.40 9.40 8.28 9.32 

Core capital (leverage) ratio (%).............................. 7.86 7.85 7.95 7.76 7.80 7.65 7.45 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.58 0.72 0.95 1.09 1.20 1.38 2.10 

Net charge-offs to loans (%).................................... 0.17 0.22 0.25 0.32 0.34 0.51 0.65 

Asset growth rate (%)............................................. 5.56 6.05 -0.21 0.25 1.70 0.77 -2.85 

Net interest margin................................................ 3.10 3.10 3.23 3.22 3.09 3.34 3.51 

Net operating income growth (%).............................. 16.69 7.69 20.08 -13.99 13.81 22.24 21.16 

Number of institutions reporting.............................. 1,640 1,689 1,780 1,925 2,030 2,152 2,262 

Percentage of unprofitable institutions (%).................. 7.99 5.27 4.10 12.05 5.86 6.97 5.88 

Number of problem institutions................................. 13 15 21 35 49 71 146 

Assets of problem institutions (in billions).................. $6 $6 $2 $7 $14 $39 $92 

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

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

(dollar figures in millions) 

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

Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

1999 1999 1998 98:4-99:4 

1,640 1,649 1,689 -2.90 

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

CONDITION DATA

... 243,852 245354 236797 2.98 

 Total assets..................................................................... $1,148,726 $1,143,114 $1,088,238 5.56

 Loans secured by real estate.......................................... 668,307 676061 643935 3.78 

1-4 Family Residential................................................... 530,225 542,570 518,184 2.32 

Multifamily residential property....................................... 55,591 54,242 54,489 2.02 

Commercial real estate................................................... 53,418 51,411 47,876 11.58 

Construction, development, and land................................. 29,073 27,838 23,386 24.32

 Commercial & industrial loans.......................................... 26,534 24,481 21,055 26.02

 Loans to individuals...................................................... 62,099 60,157 52,614 18.03

 Other loans & leases...................................................... 4,780 4,392 3,752 27.39

 Less: Unearned income & contra accounts**........................ 205 204 188 9.01

 Total loans & leases......................................................... 761,514 765,246 721,169 5.59

 Less: Reserve for losses................................................... 6,895 7,013 6,928 -0.47

 Net loans & leases......................................................... 754,619 758,233 714,241 5.65

 Securities........................................................................ 291,421 283,757 269,377 8.18

 Other real estate owned................................................... 1,125 1,227 1,577 -28.66

 Goodwill and other intangibles.......................................... 14,811 15,505 14,210 4.23

 All other assets............................................................... 86,751 84,391 88,833 -2.34 

Total liabilities and capital................................................... 1,148,726 1,143,114 1,088,238 5.56

 Deposits........................................................................ 707,097 697,781 704,859 0.32

 Other borrowed funds...................................................... 327,219 329,591 267,613 22.27

 Subordinated debt............................................................ 3,019 3,316 2,812 7.35

 All other liabilities............................................................ 16,431 15,897 18,445 -10.92

 Equity capital.................................................................. 94,959 96,529 94,509 0.48 

Loans and leases 30-89 days past due................................. 6,763 6,540 7,479 -9.57 

Noncurrent loans and leases................................................ 5,554 5,721 6,231 -10.85 

Restructured loans and leases............................................. 1,673 1,900 2,435 -31.29 

Direct and indirect investments in real estate........................... 641 573 589 8.81 

Mortgage-backed securities................................................ 221,723 213,553 207,165 7.03 

Earning assets.................................................................. 1,065,552 1,063,334 1,012,720 5.22 

FHLB Advances (Source: TFR and FHFB).............................. 231,449 213,754 174,729 32.46 

Unused loan commitments................................................... 176,001 176,777 185,090 -4.91 

INCOME DATA 

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

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

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

Provision for credit losses**................................. 

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

Full Year Full Year 4th Quarter 4th Quarter %Change 

1999 1998 %Change 1999 1998 98:4-99:4 

$74,228 $71,085 4.4 $19,611 $18,402 6.6 

... 42,897 41,902 2.4 11,617 10,836 7.2

... 31,331 29,183 7.4 7,994 7,567 5.7 

1,555 1,772 -12.3 417 459 -9.2 

9,782 9,200 6.3 2,649 2,241 18.2 

... 23,992 23,570 1.8 6,224 6,691 -7.0 

1,446 2,458 -41.2 150 557 -73.1 

6,133 5,269 16.4 1,461 1,125 29.8 

... 5 -83 N/M 9 -67 N/M

10,884 10,148 7.3 2,701 2,023 33.5 

... 1,190 1,459 -18.4 331 406 -18.5 

... 6,103 6,566 -7.1 2,160 1,749 23.5

... 9,897 8,482 16.7 2,587 1,697 52.4 

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

**For TFR filers, includes only loan and lease loss provisions. 

FDIC Quarterly Banking Profile 

Fourth Quarter 1999 11 FDIC-Insured Commercial Bank 
 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE III-B. Full Year 1999, FDIC-Insured Savings Institutions 

FULL YEAR Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

... 1,640 664 829 113 34 637 223 427 126 115 112 

Total assets (in billions).................................... $1,148.7 $33.7 $244.7 $230.3 $640.0 $384.1 $75.7 $188.2 $41.4 $76.3 $383.0 

Total deposits (in billions).................................... 707.1 26.7 183.1 146.0 351.3 258.5 52.3 127.1 26.1 44.4 198.6 

Net income (in millions).................................... 10,884.2 208.1 2,001.8 2,280.2 6,394.1 3,739.2 538.9 1,759.7 325.2 818.2 3,702.9 

% of unprofitable institutions.............................. 8.0 14.8 3.4 4.4 0.0 4.9 10.3 10.1 9.5 10.4 8.9 

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

Performance ratios (%) 

52.9 43.2 57.4 69.0 79.4 61.2 51.6 45.4 40.5 50.4 53.6 

Yield on earning assets.................................... 7.33 7.29 7.41 7.50 7.25 7.26 7.56 7.50 7.38 7.65 7.21 

Cost of funding earning assets........................... 4.24 3.93 3.99 4.19 4.37 3.95 4.24 4.37 4.41 4.42 4.41 

Net interest margin.......................................... 3.10 3.36 3.41 3.31 2.88 3.32 3.32 3.13 2.97 3.22 2.80 

Noninterest income to earning assets.................. 0.97 1.10 0.73 0.98 1.05 0.84 1.18 1.23 0.77 1.25 0.89 

Noninterest expense to earning assets.................. 2.37 3.44 2.82 2.54 2.07 2.48 3.11 2.66 2.32 2.76 1.91 

Credit loss provision to assets*........................... 0.14 0.08 0.11 0.27 0.12 0.10 0.26 0.24 0.11 0.26 0.10 

Net operating income to assets........................... 0.91 0.55 0.74 0.89 1.00 0.93 0.64 0.85 0.77 1.02 0.96 

Return on assets............................................. 1.00 0.63 0.86 1.05 1.06 1.02 0.78 0.99 0.83 1.14 1.02 

Return on equity................................................ 11.74 4.98 8.03 11.91 14.37 10.64 7.93 10.97 8.38 13.80 14.85 

Net charge-offs to loans and leases..................... 0.17 0.09 0.10 0.29 0.15 0.11 0.24 0.22 0.15 0.27 0.16 

Credit loss provision to net charge-offs.................. 130.63 143.58 157.16 143.89 114.70 155.13 155.24 147.38 108.60 139.24 93.54 

Efficiency ratio................................................ 

Condition Ratios (%) 

56.40 76.63 67.14 57.53 50.21 57.40 68.17 58.54 60.33 60.56 49.96 

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

Loss allowance to: 

... 92.76 93.46 93.44 92.72 92.47 92.59 92.75 91.54 93.33 92.08 93.60 

Loans and leases.......................................... 0.91 0.73 0.84 1.13 0.86 1.00 0.84 0.80 0.63 0.81 0.94 

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

Noncurrent assets plus 

124.14 88.85 127.85 102.13 139.40 114.64 139.41 110.16 126.45 86.22 155.66 

other real estate owned to assets..................... 0.58 0.65 0.55 0.90 0.47 0.63 0.56 0.63 0.48 0.80 0.48 

Noncurrent RE loans to RE loans........................ 0.71 0.78 0.63 1.14 0.60 0.90 0.58 0.69 0.46 0.92 0.58 

Equity capital ratio............................................. 8.27 12.50 10.34 8.56 7.14 9.52 9.34 8.48 9.67 8.19 6.56 

Core capital (leverage) ratio................................. 7.86 12.32 10.09 8.20 6.64 8.90 9.13 7.78 9.00 8.16 6.42 

Gross real estate assets to gross assets............... 77.16 69.12 71.61 73.18 81.14 71.61 71.18 72.53 78.19 65.23 88.44 

Gross 1-4 family mortgages to gross assets............ 45.87 49.64 46.58 39.49 47.71 40.82 45.73 51.08 51.89 34.09 50.11 

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

Structural Changes 

106.72 84.06 90.72 103.17 118.26 90.78 100.10 107.94 112.14 120.57 124.61 

New Charters................................................ 38 36 2 0 0 8 9 13 2 3 3 

Thrifts absorbed by mergers.............................. 80 32 41 5 2 24 19 24 4 8 1 

Failed Thrifts................................................ 

PRIOR FULL YEARS**

 (The way it was...) 

1 1 0 0 0 0 1 0 0 0 0 

Number of institutions...............................1998 1,689 701 843 111 34 656 233 442 125 120 113 

...............................................1996 1,925 845 919 125 36 730 278 500 145 129 143 

...............................................1994 2,152 996 992 133 31 786 343 547 160 141 175 

Total assets (in billions).............................1998 $1,088.2 $36.2 $245.0 $220.4 $586.7 $360.0 $66.4 $176.1 $36.7 $70.6 $378.5 

................................................1996 1,028.3 43.7 270.1 258.3 456.2 345.4 63.2 175.8 50.3 78.3 315.3 

................................................1994 1,008.6 50.4 286.0 292.2 379.9 330.9 82.1 155.5 53.1 70.8 316.1 

Return on assets (%)................................1998 1.01 0.77 0.89 1.08 1.04 0.97 0.93 0.97 0.92 1.19 1.05 

................................................1996 0.70 0.44 0.66 0.82 0.69 0.84 0.52 0.70 0.56 1.57 0.40 

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

Net charge-offs to loans & leases (%) 

0.66 0.79 0.77 0.82 0.43 0.89 0.84 0.76 0.40 0.97 0.30 

................................................1998 0.22 0.08 0.15 0.27 0.24 0.16 0.54 0.20 0.10 0.42 0.19 

................................................1996 0.32 0.10 0.17 0.33 0.43 0.32 0.38 0.14 0.15 0.32 0.44 

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

Noncurrent assets plus 

0.51 0.10 0.23 0.49 0.79 0.49 0.16 0.11 0.15 0.29 0.86 

OREO to assets (%)***.....................1998 0.72 0.77 0.69 1.03 0.61 0.79 0.66 0.69 0.54 0.87 0.66 

................................................1996 1.09 0.96 0.99 1.25 1.08 1.26 0.99 0.65 0.67 1.11 1.25 

.................................................1994 1.38 1.08 1.24 1.47 1.46 1.83 1.07 0.50 0.61 1.37 1.56 

Equity capital ratio (%)..............................1998 8.68 12.32 10.74 9.04 7.47 9.80 10.16 9.16 9.64 8.20 7.14 

................................................1996 8.34 11.40 9.95 8.29 7.13 9.12 9.44 8.69 8.71 8.10 7.09 

................................................1994 7.93 9.94 9.02 8.10 6.70 8.51 8.59 8.75 7.71 7.01 6.97 

* For TFR filers, includes only loan and lease loss provisions. 

** Data between 1994 and 1995 do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 12 Fourth Quarter 1999 
 

 

 

 

 

TABLE IV-B. FOURTH Quarter 1999, FDIC-Insured Savings Institutions 

FOURTH QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- South 

west west West 

... 1,640 664 829 113 34 637 223 427 126 115 112 

Total assets (in billions).................................... $1,148.7 $33.7 $244.7 $230.3 $640.0 $384.1 $75.7 $188.2 $41.4 $76.3 $383.0 

Total deposits (in billions).................................... 707.1 26.7 183.1 146.0 351.3 258.5 52.3 127.1 26.1 44.4 198.6 

Net income (in millions).................................... 2,700.6 40.4 445.7 584.5 1,630.0 994.6 111.4 377.0 90.2 199.8 927.7 

% of unprofitable institutions.............................. 10.1 16.9 5.7 6.2 0.0 6.4 16.1 11.9 9.5 8.7 14.3 

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

Performance Ratios 

55.1 48.3 57.5 70.8 73.5 61.2 52.5 48.5 56.3 53.0 50.9 

Yield on earning assets.................................... 7.46 7.49 7.52 7.68 7.36 7.40 7.76 7.61 7.48 7.85 7.33 

Cost of funding earning assets........................... 4.42 4.02 4.10 4.35 4.59 4.07 4.45 4.52 4.53 4.64 4.66 

Net interest margin.......................................... 3.04 3.47 3.42 3.33 2.77 3.33 3.31 3.09 2.95 3.20 2.66 

Noninterest income to earning assets.................. 1.01 1.19 0.70 0.98 1.13 0.88 1.20 1.37 0.84 1.26 0.89 

Noninterest expense to earning assets.................. 2.37 3.78 2.91 2.53 2.02 2.48 3.25 2.77 2.35 2.75 1.82 

Credit loss provision to assets.............................. 0.15 0.10 0.12 0.29 0.11 0.11 0.34 0.25 0.11 0.25 0.09 

Net operating income to assets........................... 0.91 0.43 0.65 0.90 1.05 1.00 0.52 0.82 0.79 1.00 0.95 

Return on assets............................................. 0.96 0.48 0.74 1.03 1.04 1.05 0.60 0.82 0.89 1.07 0.98 

Return on equity................................................ 11.43 3.84 7.06 12.01 14.31 11.03 6.30 9.38 9.01 12.87 14.80 

Net charge-offs to loans and leases..................... 0.18 0.08 0.12 0.31 0.16 0.14 0.27 0.18 0.14 0.42 0.14 

Credit loss provision to net charge-offs*............... 125.96 182.54 149.86 142.57 105.11 124.58 179.62 186.31 106.53 83.28 92.71 

Efficiency ratio................................................ 

Structural Changes (QTR) 

56.35 80.56 69.48 56.56 49.28 56.50 71.12 59.34 59.94 60.56 49.26 

New charters................................................ 9 9 0 0 0 3 1 2 1 2 0 

Thrifts absorbed by mergers.............................. 16 5 9 0 2 4 5 4 2 1 0 

Failed Thrifts................................................ 

PRIOR FOURTH QUARTERS**

 (The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%)................................1998 0.76 0.64 0.79 1.03 0.65 0.82 0.55 0.83 0.93 1.16 0.62 

.................................................1996 0.84 0.81 0.91 1.08 0.67 0.98 0.85 1.06 0.63 1.02 0.57 

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

Net charge-offs to loans & leases (%) 

0.65 0.69 0.63 0.80 0.55 0.80 0.70 0.72 -0.08 1.01 0.51 

.................................................1998 0.23 0.10 0.17 0.27 0.25 0.16 0.18 0.24 0.15 0.41 0.26 

.................................................1996 0.36 0.12 0.21 0.37 0.45 0.38 0.43 0.15 0.17 0.32 0.47 

.................................................1994 0.45 0.11 0.27 0.44 0.63 0.47 0.13 0.12 0.32 0.28 0.70 

* For TFR filers, includes only loan and lease loss provisions. 

** Data between 1994 and 1995 do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 

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 

Fourth Quarter 1999 13 FDIC-Insured Savings Institutions 
TABLE V-B. Loan Performance, FDIC-Insured Savings Institutions 

December 31, 1999 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 0.80 1.63 0.95 0.87 0.67 0.76 0.95 0.91 1.16 1.00 0.69 

Construction, development, and land.................. 0.95 1.42 1.39 1.09 0.47 0.77 1.07 1.54 2.07 0.41 0.87 

Commercial real estate.................................... 0.55 1.35 0.66 0.51 0.38 0.55 0.82 0.55 0.63 0.73 0.36 

Multifamily residential real estate........................ 0.28 0.49 0.42 0.38 0.20 0.22 0.56 0.54 0.38 0.62 0.22 

Home equity loans.......................................... 0.45 0.56 0.52 0.47 0.41 0.56 0.28 0.59 0.48 0.13 0.20 

Other 1-4 Family residential.............................. 0.89 1.74 1.03 1.01 0.76 0.87 0.99 0.94 1.20 1.26 0.78 

Commercial and industrial loans........................... 1.26 2.07 1.21 1.30 1.15 1.03 1.99 2.05 1.50 0.73 1.07 

Loans to individuals............................................. 1.69 2.40 1.97 1.86 1.51 1.63 2.61 1.57 1.51 0.83 2.67 

Credit card loans............................................. 1.42 0.98 4.08 3.60 0.90 1.34 3.19 1.09 3.39 0.57 3.90 

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

Percent of Loans Noncurrent* 

1.78 2.44 1.79 1.60 1.84 1.68 2.51 1.77 1.42 1.03 2.30 

All real estate loans............................................. 0.71 0.78 0.63 1.14 0.60 0.90 0.58 0.69 0.46 0.92 0.58 

Construction, development, and land.................. 0.68 1.20 0.81 0.92 0.36 0.69 0.68 1.16 0.80 0.13 0.88 

Commercial real estate.................................... 0.84 0.84 0.71 1.09 0.75 1.02 0.73 0.71 0.75 0.69 0.62 

Multifamily residential real estate........................ 0.40 0.91 0.39 0.74 0.25 0.59 0.51 0.42 0.12 2.40 0.16 

Home equity loans.......................................... 0.26 0.17 0.24 0.23 0.28 0.31 0.12 0.34 0.18 0.03 0.16 

Other 1-4 Family residential.............................. 0.75 0.75 0.64 1.27 0.65 0.95 0.58 0.71 0.43 1.06 0.65 

Commercial and industrial loans........................... 1.18 1.59 1.08 1.09 1.23 0.92 1.06 1.46 1.43 1.99 1.00 

Loans to individuals............................................. 0.72 0.97 0.84 0.89 0.60 0.56 0.63 0.83 0.47 0.69 1.05 

Credit card loans............................................. 1.09 0.71 3.57 1.96 0.79 0.94 0.44 0.53 1.36 1.15 3.23 

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

Percent of Loans Charged-off 

0.60 0.98 0.60 0.73 0.51 0.49 0.66 0.95 0.42 0.33 0.40 

All real estate loans............................................. 0.05 0.04 0.04 0.05 0.05 0.04 0.04 0.05 0.05 0.10 0.04 

Construction, development, and land.................. 0.04 0.12 0.06 0.05 0.00 0.04 0.07 0.10 0.08 0.00 0.00 

Commercial real estate.................................... 0.02 0.05 -0.01 0.03 0.04 -0.02 0.05 0.04 0.20 0.03 0.03 

Multifamily residential real estate........................ -0.06 0.07 0.03 -0.05 -0.09 -0.01 0.02 0.07 -0.01 0.01 -0.11 

Home equity loans.......................................... 0.13 0.25 0.05 0.15 0.15 0.15 0.10 0.05 0.32 0.15 0.17 

Other 1-4 Family residential.............................. 0.06 0.03 0.04 0.06 0.06 0.05 0.04 0.05 0.02 0.14 0.07 

Commercial and industrial loans........................... 0.44 0.38 0.46 0.64 0.28 0.18 1.43 0.65 0.47 0.21 0.56 

Loans to individuals............................................. 1.43 0.55 0.83 2.19 1.33 0.89 1.40 1.38 1.12 0.87 3.74 

Credit card loans............................................. 3.46 1.47 3.17 9.19 2.50 2.62 3.53 2.90 13.46 1.33 11.00 

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

Loans Outstanding (in billions) 

0.77 0.52 0.65 1.04 0.69 0.53 1.01 0.83 0.54 0.51 1.44 

All real estate loans............................................. $668.3 $20.4 $150.6 $128.6 $368.7 $204.7 $43.9 $115.3 $26.4 $39.9 $238.2 

Construction, development, and land.................. 29.1 1.0 9.0 7.6 11.4 5.7 4.4 5.1 1.6 7.1 5.3 

Commercial real estate.................................... 53.2 1.9 18.1 15.4 17.7 24.8 3.8 6.6 2.4 4.7 11.0 

Multifamily residential real estate........................ 55.6 0.6 8.8 13.9 32.3 16.3 0.8 6.9 0.9 2.0 28.7 

Home equity loans.......................................... 19.0 0.4 5.0 4.4 9.2 7.1 1.9 5.1 0.6 0.5 3.9 

Other 1-4 Family residential.............................. 511.2 16.4 109.7 87.3 297.9 150.7 33.0 91.6 21.0 25.7 189.3 

Commercial and industrial loans........................... 26.5 0.7 6.2 7.8 11.8 11.9 2.6 3.9 1.0 3.4 3.7 

Loans to individuals............................................. 62.1 1.4 10.3 14.6 35.7 18.5 6.1 17.6 2.0 10.5 7.3 

Credit card loans............................................. 15.4 0.0 0.8 2.0 12.5 2.9 0.9 5.2 0.1 4.7 1.7 

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

Memo: Other Real Estate Owned (in millions)** 

46.7 1.4 9.5 12.6 23.2 15.6 5.2 12.4 1.9 5.8 5.6 

All other real estate owned.................................... $1,124.8 $33.7 $235.6 $402.1 $453.3 $352.5 $106.3 $182.0 $53.4 $105.4 $325.0 

Construction, development, and land.................. 155.0 5.3 26.4 22.8 100.5 17.5 73.3 18.9 13.0 5.9 26.5 

Commercial real estate.................................... 283.7 5.8 60.4 166.5 51.0 138.8 12.4 41.4 15.6 36.6 39.0 

Multifamily residential real estate........................ 74.8 0.4 17.0 35.0 22.4 15.7 2.4 9.9 0.3 23.4 23.2 

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

Troubled Real Estate Asset Rates*** 

(% of total RE assets) 

656.0 22.7 135.7 192.0 305.7 194.2 38.3 115.2 27.9 41.1 239.3 

All real estate loans............................................. 0.88 0.95 0.78 1.45 0.72 1.07 0.82 0.85 0.67 1.18 0.72 

Construction, development, and land.................. 1.20 1.70 1.10 1.22 1.22 0.99 2.30 1.52 1.62 0.22 1.38 

Commercial real estate.................................... 1.37 1.21 1.04 2.16 1.03 1.57 1.05 1.33 1.39 1.52 0.98 

Multifamily residential real estate........................ 0.54 0.98 0.59 0.99 0.32 0.69 0.79 0.56 0.15 3.55 0.24 

1-4 family residential....................................... 0.86 0.87 0.74 1.43 0.73 1.04 0.66 0.80 0.55 1.20 0.76 

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

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 14 Fourth Quarter 1999 
ALL FDIC-INSURED INSTITUTIONS 

 The BIF Suffers Its First Year-To-Year Decline Since 1991 

 The BIF Reserve Ratio Dips To 1.37 Percent 

 Reflecting Minimal Losses, The SAIF Reserve Ratio Advances To 

1.45 Percent 

Deposits insured by the FDIC rose by $29 billion 

during the final three months of 1999. This was 

the largest quarterly increase of the year, but it 

was far less than the $85-billion increase seen in 

the fourth quarter of 1998. The fourth quarter of 

1999 continued the trend of the 1990s during 

which insured institutions, in the aggregate, have 

shifted their funding away from deposits in general and insured deposits in particular. Insured 

institutions’ liabilities grew by 3.6 percent during 

the fourth quarter, but deposits grew by 3.0 percent and insured deposits by just 1.0 percent. 

Deposit growth was concentrated in foreign 

offices, up $53 billion (8.8 percent), all of which is 

uninsured, and in the uninsured portion of large 

domestic deposit accounts, up $51 billion (5.3 

percent). Insured deposits fell to 52.6 percent of 

domestic liabilities at year-end 1999, having 

declined steadily from the recent peak of 70 percent in early 1992. 

The balance of the Bank Insurance Fund (BIF) 

rose to $29.6 billion (unaudited) at the end of 

1999 from $29.5 billion on September 30. 

However, for the full calendar year the fund fell 

slightly, by $12 million, the first year-to-year 

decline in the fund balance since the depths of 

the banking crisis in 1991. Despite the continuation of generally favorable economic conditions 

throughout 1999, the net loss for the year was 

attributable to sharply higher insurance losses of 

approximately $810 million, compared to $179 

million in 1998. Two BIF members failed during 

the fourth quarter of 1999, bringing the total for 

the year to seven, the highest number since 13 

BIF members failed in 1994. Failed-institution 

assets totaled $1.4 billion in 1999, compared to 

$370 million in 1998, when three BIF members 

failed. Despite the fund’s fourth-quarter growth, a 

1.2 percent increase in BIF-insured deposits 

caused a reduction in the BIF reserve ratio to 1.37 

percent from 1.38 percent at the end of the third 

quarter, though still well above the statutory minimum of 1.25 percent. 

The Savings Association Insurance Fund (SAIF) 

had a balance of $10.3 billion (unaudited) on 

December 31, 1999, having grown from $10.2 billion on September 30. No SAIF member failed 

during the fourth quarter. Only one SAIF member, with total assets of $69 million, failed in 1999, 

causing an estimated insurance loss of $4 million. 

This was the first SAIF-member failure since 

1996. With modest fourth-quarter fund growth 

(0.7 percent) outpacing the growth of SAIFinsured deposits (0.5 percent), the SAIF reserve 

ratio rose by 1 basis point, to 1.45 percent at the 

end of 1999.1 

1 The SAIF reserve ratio for September 30 includes the SAIF 

Special Reserve of $978 million, which was eliminated on 

November 12, 1999, with enactment of the Gramm-LeachBliley Act of 1999. 

BIF INSURANCE LOSSES, 

1992–1999 $ Billions 

$3,666 

$810 

$645 

$182 $179 $87 $40 $4 

1992 1993 1994 1995 1996 1997 1998 1999* 

*Preliminary 

FDIC Quarterly Banking Profile 

Fourth Quarter 1999 15 All FDIC-Insured Institutions 
 

 

 

 

 

 

 

 

 

 

 

 

 

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

(dollar figures in millions) 1999 1998 1997 1996 1995 1994 1993 

Number of institutions reporting.............................. 10,220 10,463 10,922 11,452 11,970 12,603 13,220 

Total assets..................................................................... $6,883,569 $6,529,293 $6,041,136 $5,606,608 $5,338,418 $5,019,085 $4,707,056 

Total deposits...................................................... 4,537,873 4,386,302 4,125,862 3,925,058 3,769,480 3,611,618 3,528,486 

Number of problem institutions................................. 79 84 92 117 193 318 572 

Assets of problem institutions (in billions).................. $10 $11 $6 $12 $31 $73 $334 

Number of failed/assisted institutions........................ 8 3 1 6 8 15 50 

Assets of failed/assisted institutions (in billions)......... $1.56 $0.37 $0.03 $0.22 $1.21 $1.57 $9.67 

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

(dollar figures in millions) 

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

Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

1999 1999 1998 98:4-99:4 

 10,220 10,270 10,463 -2.3 

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

CONDITION DATA 

... 1,900,360 1,878,596 1,863,847 2.0 

Total assets..................................................................... $6,883,569 $6,655,590 $6,529,293 5.4

 Loans secured by real estate.......................................... 2,178,065 2,107,393 1,989,503 9.5 

1-4 Family residential................................................... 1,369,365 1,331,714 1,283,508 6.7 

Home equity loans...................................................... 121,335 115,401 113,433 7.0 

Multifamily residential property....................................... 108,711 104,552 97,731 11.2 

Commercial real estate................................................... 470,645 452,663 418,207 12.5 

Construction, development, and land................................. 164,640 155,310 130,108 26.5 

Other real estate loans................................................... 64,703 63,154 59,950 7.9 

Commercial & industrial loans 997,663 972,367 919,717 8.5

 Loans to individuals...................................................... 620,564 591,089 623,491 -0.5

 Credit cards & related plans.......................................... 227,339 202,742 241,592 -5.9

 Other loans & leases...................................................... 460,457 460,224 431,010 6.8

 Less: Unearned income & contra accounts........................ 3,875 3,863 4,220 -8.2

 Total loans & leases......................................................... 4,252,873 4,127,210 3,959,500 7.4

 Less: Reserve for losses................................................... 65,651 65,303 64,202 2.3 

Net loans and leases......................................................... 4,187,222 4,061,908 3,895,298 7.5 

Securities........................................................................ 1,337,592 1,319,349 1,249,080 7.1 

Other real estate owned...................................................... 3,917 4,147 4,727 -17.1 

Goodwill and other intangibles............................................. 112,852 102,550 94,432 19.5 

All other assets.................................................................. 1,241,987 1,167,636 1,285,756 -3.4 

Total liabilities and capital................................................... 6,883,569 6,655,590 6,529,293 5.4

 Deposits....................................................................... 4,537,873 4,405,291 4,386,302 3.5

 Other borrowed funds...................................................... 1,376,039 1,303,011 1,170,694 17.5

 Subordinated debt............................................................ 79,471 79,060 75,597 5.1

 All other liabilities............................................................ 315,351 302,681 340,021 -7.3

 Equity capital.................................................................. 574,835 565,547 556,678 3.3 

Loans and leases 30-89 days past due................................. 46,551 45,951 48,310 -3.6 

Noncurrent loans and leases................................................ 38,554 38,691 37,482 2.9 

Restructured loans and leases............................................. 2,818 3,213 4,283 -34.2 

Direct and indirect investments in real estate........................... 919 857 1,095 -16.1 

Mortgage-backed securities................................................ 676,201 668,823 677,228 -0.2 

Earning assets.................................................................. 6,012,960 5,829,928 5,688,423 5.7 

FHLB Advances (Source: TFR and FHFB).............................. 386,874 357,801 281,024 37.7 

Unused loan commitments................................................... 4,134,206 4,002,687 3,884,330 6.4 

INCOME DATA 

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

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

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

Provision for credit losses.................................

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

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

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

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

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

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

Preliminary Preliminary 

Full Year Full Year 4th Quarter 4th Quarter %Change 

1999 1998 %Change 1999 1998 98:4-99:4 

$441,563 $433,109 2.0 $116,800 $109,983 6.2 

... 218,029 221,168 -1.4 59,559 55,394 7.5

... 223,535 211,941 5.5 57,242 54,589 4.9 

... 23,268 23,991 -3.0 6,561 6,267 4.7 

154,238 132,901 16.1 41,476 36,890 12.4 

... 228,169 217,687 4.8 60,982 61,640 -1.1 

1,630 5,585 -70.8 -126 1,611 N/M 

45,553 37,226 22.4 10,796 8,303 30.0 

... 174 424 -59.0 211 -76 N/M

82,587 71,947 14.8 20,464 16,804 21.8 

* Excludes insured branches of foreign banks (IBAs) and institutions in RTC conservatorship (the last of which ended in 1995). N/M - Not meaningful 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 16 Fourth Quarter 1999 
 

 

 

 

0 

TABLE III-C. Selected Insurance Fund Indicators 

(dollar figures in millions) Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

1999 1999 1998 98:4-99:4 

Bank Insurance Fund* 

Reserve ratio (%)**.................................................................. 1.37 1.38 1.39 1.4 

Fund balance (unaudited)......................................................... $29,600 $29,499 $29,612 0.0 

Estimated insured deposits...................................................... 2,157,536 2,132,292 2,134,425 1.1 

SAIF-member Oakars............................................................ 43,827 43,049 40,702 7.7 

BIF-members........................................................................ 2,113,708 2,089,243 2,093,723 1.0 

Assessment base..................................................................... 3,038,385 2,975,923 2,989,587 1.6 

SAIF-member Oakars............................................................ 45,561 44,798 42,854 6.3 

BIF-members........................................................................ 2,992,824 2,931,125 2,946,733 1.6 

Savings Association Insurance Fund 

Reserve ratio (%)**............................................................. 1.45 1.44 1.37 5.5 

Fund balance (unaudited)......................................................... $10,281 $10,205 $9,840 4.5 

Estimated insured deposits...................................................... 711,345 707,565 716,029 -0.7 

BIF-member Oakars............................................................... 262,783 264,531 265,602 -1.1 

SAIF-member Sassers............................................................ 70,918 68,760 63,398 11.9 

Other SAIF members............................................................ 377,644 374,273 387,028 -2.4 

Assessment base..................................................................... 764,359 756,611 758,566 0.8 

BIF-member Oakars............................................................... 263,328 265,064 266,821 -1.3 

SAIF-member Sassers............................................................ 81,081 78,065 70,162 15.6 

Other SAIF members............................................................ 419,951 413,482 421,583 -0.4 

* Includes U.S. branches of foreign banks. 

** Fund balance as a percent of estimated insured deposits. For SAIF, Special Reserve is excluded. 

Insurance Fund Reserve Ratios* Fund Balances and Insured Deposits* 

Percent of Insured Deposits ($ Millions) 

12/92 12/94 12/96 3/99 12/99 

-0.01 

0.69 

1.15 

1.30 1.34 1.38 1.39 1.41 

Target Ratio 1.30 

1.40 1.38 1.37 

0.04 

0.17 

0.28 

0.47 

1.36 1.37 1.41 1.43 1.44 1.45 

BIF 

SAIF 

BIF BIF-Insured SAIF SAIF-Insured 

Balance Deposits Balance Deposits 

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

1.25 

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

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

12/95 25,454 1,951,693 3,358 711,897 

12/96 26,854 2,007,042 8,888 683,403 

12/97 28,293 2,056,558 9,368 689,915 

12/98 29,612 2,134,425 9,840 716,029 

3/99 29,852 2,123,618 9,937 707,029 

6/99 29,831 2,128,188 10,066 704,934 

9/99 29,499 2,132,292 10,205 707,565 

12/99 29,600 2,157,536 10,281 711,345 

12/93 12/95 12/97 12/98 6/99 9/99 

* Insurance fund balance as a percent of total insured deposits. *Insured deposit amounts are estimates. 

The SAIF balance includes the $978-million SAIF Special Reserve. 1999 fund balance amounts are unaudited. 

Net of the Special Reserve, the SAIF reserve ratio was 1.27 percent, 

1.29 percent and 1.30 percent for 3/99, 6/99 and 9/99, respectively. 

TABLE IV-C. Closed/Assisted Institutions 

(dollar figures in millions) 

1999 1998 1997 1996 1995 1994 1993 

BIF Members 

Number of institutions............................................................ 7 3 1 5 6 13 41 

Total assets........................................................................ $1,490 $371 $27 $186 $758 $1,432 $3,539 

SAIF Members 

Number of institutions............................................................ 1 0 0 1 2 2 9 

Total assets........................................................................ $71 $0 $0 $34 $456 $137 $6,132 

FDIC Quarterly Banking Profile 

Fourth Quarter 1999 17 All FDIC-Insured Institutions 
 

 

 

 

TABLE V-C. Selected Indicators, By Fund Membership* 

(dollar figures in millions) 1999 1998 1997 1996 1995 1994 1993 

BIF Members 

Number of institutions reporting................................................ 8,832 9,031 9,404 9,823 10,243 10,760 11,291 

BIF-member Oakars............................................................... 728 745 778 793 807 719 570 

Other BIF-members............................................................... 8,104 8,286 8,626 9,030 9,436 10,041 10,721 

Total assets.......................................................................................... $5,979,660 $5,701,115 $5,285,412 $4,857,761 $4,577,897 $4,248,300 $3,949,694 

Total deposits........................................................................ 3,986,952 3,843,821 3,611,453 3,404,203 3,225,649 3,062,717 2,951,979 

Net income........................................................................... 74,114 64,349 61,462 54,483 50,779 46,882 44,498 

Return on assets (%)............................................................... 1.30 1.18 1.22 1.17 1.15 1.14 1.17 

Return on equity (%)............................................................... 15.14 13.81 14.44 14.14 14.32 14.43 14.89 

Noncurrent assets plus OREO to assets (%)................................. 0.62 0.64 0.67 0.77 0.89 1.06 1.69 

Number of problem institutions................................................... 66 68 73 86 151 264 472 

Assets of problem institutions................................................... $4,450 $5,326 $4,598 $6,624 $20,166 $42,311 $269,159 

Number of failed/assisted institutions.......................................... 7 3 1 5 6 13 41 

Assets of failed/assisted institutions............................................. $1,490 $371 $27 $182 $753 $1,392 $3,539 

SAIF Members 

Number of institutions reporting................................................ 1,388 1,432 1,518 1,629 1,727 1,843 1,929 

SAIF-member Oakars............................................................ 120 116 112 94 77 55 28 

Other SAIF-members............................................................ 1,268 1,316 1,406 1,535 1,650 1,788 1,091 

Total assets........................................................................... $903,909 $828,177 $755,724 $748,847 $760,520 $770,785 $757,361 

Total deposits........................................................................ 550,920 542,481 514,408 520,854 543,831 548,900 576,506 

Net income........................................................................... 8,472 7,598 6,485 4,883 5,584 4,101 5,380 

Return on assets (%)............................................................... 0.99 0.98 0.94 0.67 0.76 0.56 0.72 

Return on equity (%)............................................................... 12.00 11.34 11.13 8.07 9.47 7.16 9.74 

Noncurrent assets plus OREO to assets (%)................................. 0.65 0.80 0.98 1.07 1.12 1.23 1.85 

Number of problem institutions................................................... 13 16 19 31 42 54 100 

Assets of problem institutions................................................... $5,524 $5,992 $1,662 $5,548 $10,864 $30,336 $64,973 

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

Assets of failed/assisted institutions............................................. $71 $0 $0 $35 $426 $129 $6,105 

* Excludes insured branches of foreign banks (IBAs) and institutions in RTC conservatorship (the last of which ended in 1995). 

TABLE VI-C. Estimated FDIC-Insured Deposits by Fund Membership and Type of Institution 

(dollar figures in millions) 

December 31, 1999 

Commercial Banks and Savings Institutions 

Number of Total Domestic 

Institutions Assets Deposits* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks............................................. 8,580 $5,734,843 $3,175,187 $1,959,629 $269,157 $2,228,786 

BIF-member..................................................................... 8,471 5,650,081 3,117,454 1,944,907 236,640 2,181,547 

SAIF-member..................................................................... 109 84,762 57,732 14,722 32,516 47,238 

FDIC-Supervised............................................................... 5,204 1,039,901 762,111 508,849 62,562 571,411 

OCC-Supervised............................................................... 2,366 3,271,582 1,776,392 1,097,556 152,593 1,250,149 

Federal Reserve-Supervised................................................ 1,010 1,423,360 636,683 353,224 54,002 407,226 

FDIC-Insured Savings Institutions............................................. 1,640 1,148,726 707,097 196,609 442,189 638,798 

OTS-Supervised Savings Institutions....................................... 1,102 863,414 512,559 75,037 387,049 462,087 

BIF-member..................................................................... 39 105,432 62,010 47,130 9,405 56,535 

SAIF-member..................................................................... 1,063 757,982 450,549 27,907 377,644 405,551 

FDIC-Supervised State Savings Banks.................................... 538 285,312 194,538 121,572 55,139 176,711 

BIF-member..................................................................... 322 224,147 151,944 120,373 16,738 137,111 

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

Total Commercial Banks and 

... 216 61,165 42,594 1,199 38,401 39,600 

Savings Institutions................................................... 10,220 6,883,569 3,882,284 2,156,238 711,345 2,867,583 

BIF-member........................................................................ 8,832 5,979,660 3,331,408 2,112,411 262,783 2,375,194 

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

Other FDIC-Insured Institutions 

 1,388 903,909 550,876 43,827 448,562 492,390 

U.S. Branches of Foreign Banks............................................. 20 9,586 3,376 1,298 0.0 1,298 

Total FDIC-Insured Institutions....................................... 10,240 6,893,156 3,885,660 2,157,536 711,345 2,868,881 

* Excludes $656 billion in foreign office deposits, which are uninsured. 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 18 Fourth Quarter 1999 
TABLE VII-C. Assessment Base Distribution and Rate Schedules 

BIF Assessment Base Distribution 

Assessable Deposits in Millions as of December 31,1999 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2000 

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

8,291 

 $2,946,488 

 150 

 $34,245 

 2 

 $260 

93.7% 

97.0% 

1.7% 

1.1% 

0.0% 

0.0% 

329 3.7% 

$52,651 1.7% 

12 0.1% 

$831 0.0% 

0 0.0% 

$0 0.0% 

50 

$2,475 

10 

$1,144 

8 

$292 

0.6% 

0.1% 

0.1% 

0.0% 

0.1% 

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. 

SAIF Assessment Base Distribution 

Assessable Deposits in Millions as of December 31,1999 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2000 

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

 1,271 

 $735,274 

 21 

 $5,404 

 0 

 $0 

91.6% 

96.2% 

1.5% 

0.7% 

0.0% 

0.0% 

77 5.5% 

$18,506 2.4% 

5 0.4% 

$1,495 0.2% 

0 0.0% 

$0 0.0% 

6 

$943 

7 

$2,706 

1 

$32 

0.4% 

0.1% 

0.5% 

0.4% 

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. 

Assessment Rate Schedules 

First Semiannual 2000 Assessment Period 

Cents Per $100 of Assessable Deposits 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well Capitalized..........................................

2. Adequately Capitalized.................................

3. Undercapitalized..........................................

 0 

 3 

 10 

3 

10 

24 

17 

24 

27 

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

Currently, the rate schedules are identical. 

FDIC Quarterly Banking Profile 

Fourth Quarter 1999 19 All FDIC-Insured Institutions 
NUMBER OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1991–1999 

Number of Institutions 

Savings Institutions 

Commercial Banks 1,016 

410 

1,426 

12/91 

787 

276 

1,063 

12/92 

426 

146 

572 

12/93 

247 

71 

318 

12/94 

144 

49 

193 

12/95 

35 

82 

117 

12/96 

35 

77 

112 

3/97 

29 

74 

103 

6/97 

27 

71 

98 

9/97 

21 

71 

92 

12/97 

16 

68 

84 

3/98 

18 

64 

82 

6/98 

70 

18 

88 

9/98 

69 

15 

84 

12/98 

64 

16 

80 

3/99 

62 

14 

76 

6/99 

69 

11 

80 

9/99 

66 

13 

79 

12/99 

$ Billions 

$819 

$592 

$334 

$72 $31 $12 $10 $8 $6 $6 $7 $8 $8 $11 $10 $9 $8 $10 

Savings Institutions 

Savings Institutions 

Commercial Banks 

Commercial Banks 

ASSETS OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1991–1999 

12/9112/9212/9312/9412/9512/96 3/97 6/97 9/97 12/97 3/98 6/98 9/98 12/98 3/99 6/99 9/99 12/99 

Savings Institutions 291 184 92 39 14 7 5 3 2 2 2 3 3 6 5 4 4 6 

Commercial Banks 528 408 242 33 17 5 5 5 4 5 5 5 5 5 5 5 4 4 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 20 Fourth Quarter 1999 
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 I-B through V-B.) 

This section covers savings institutions insured by either BIF 

or SAIF that operate under state or federal banking codes 

applicable to thrift institutions, except for one self-liquidating 

institution primarily funded by the FSLIC Resolution Fund 

(FRF). Savings institutions in Resolution Trust Corporation 

conservatorships are also excluded from these tables while 

in conservatorship, where applicable. 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 I-C through VII-C.) 

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 unless otherwise indicated. 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) Call Reports and the OTS 

Thrift Financial Reports submitted by all FDIC-insured 

depository institutions. This information is stored on and 

retrieved from the FDIC’s Research Information System 

(RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting 

and accounting requirements of the FFIEC Call Reports. 

Beginning in March 1997, both Thrift Financial Reports and 

Call Reports are completed on a fully consolidated basis. 

Previously, the consolidation of subsidiary depository institutions was prohibited. Now, parent institutions are required to 

file consolidated reports, while their subsidiary financial institutions are still required to file separate reports. Data from 

subsidiary institution reports are included in the Quarterly 

Banking Profile tables, which can lead to double-counting. 

No adjustments are made for any double-counting of subsidiary data. 

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 “poolingof-interest” mergers, the assets of the acquired institution(s) 

are included in average assets since the year-to-date income 

includes the results of all merged institutions. No adjustments are made for “purchase accounting” mergers. Growth 

rates represent the percentage change over a 12-month 

period in totals for institutions in the base period to totals for 

institutions in the current period. 

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

institution’s home state. In addition, institutions may change 

their charters, resulting in an inter-industry migration, e.g., 

savings institutions can convert to commercial banks or commercial banks may convert to savings institutions. These situations can affect state and regional statistics. 

ACCOUNTING CHANGES 

Adoption of GAAP Reporting — Effective with the March 

31, 1997 Call Reports, generally accepted accounting principles (GAAP) were adopted as the reporting basis for the balance sheet, income statement and supporting schedules. 

New reporting instructions for 1997 and 1998 changed the 

amounts reported for a number of items used in the 

Quarterly Banking Profile, so that comparability with prior 

periods may be affected. Among the items most significantly 

affected by the new reporting rules are: loans & leases, 

reserve for losses, loss provisions, goodwill and other intangibles, all other assets and equity capital (see definitions 

below). More information on changes to the Call Report in 

March 1997 and in March 1998 is contained in Financial 

Institution Letters (FIL-27-97 and FIL-28-98), which are available through the FDIC World Wide Web site at www.fdic.gov, 

or from the FDIC Public Information Center, 801 17th Street, 

NW, Washington, DC 20434; telephone (800) 276-6003. 

Information on changes to the March 31, 1997 Thrift 

Financial Reports is available from the Office of Thrift 

Supervision, 1700 G Street, NW, Washington, DC 20552; 

telephone (202) 906-5900. 

Subchapter S Corporations — The Small Business Job 

Protection Act of 1996 changed the Internal Revenue Code 

to allow financial institutions to elect Subchapter S corporation status, beginning in 1997. A Subchapter S corporation is 

treated as a pass-through entity, similar to a partnership, for 

federal income tax purposes. It is generally not subject to any 

federal income taxes at the corporate level. Its taxable 

income flows through to its shareholders in proportion to their 

stock ownership, and the shareholders generally pay federal 

income taxes on their share of this taxable income. This can 

FDIC Quarterly Banking Profile 

Fourth Quarter 1999 21 Notes to Users 
have the effect of reducing institutions’ reported taxes and 

increasing their after-tax earnings. 

The election of Subchapter S status may result in an increase in shareholders’ personal tax liability. Therefore, some 

S corporations may increase the amount of earnings distributed as dividends to compensate for higher personal taxes. 

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. 

All other liabilities — bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance 

sheet credit losses, and other liabilities. 

Assessment base 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 

(Percent) Capital * Capital * Leverage Equity 

Well-capitalized >10 and >6 and >5 — 

Adequately 

capitalized >8 and >4 and >4 — 

Undercapitalized >6 and >3 and >3 — 

Significantly 

undercapitalized <6 or <3 or <3 and >2 

Critically 

undercapitalized — — — <2 

*As a percentage of risk-weighted assets. 

For purpose of BIF and SAIF assessments, risk-based 

assessment rules combine the last three capital rating categories into a single “undercapitalized” group. Supervisory 

risk subgroup assignments are based on supervisory ratings. 

The strongest institutions (those rated 1 or 2) are in subgroup 

A, those rated 3 are in subgroup B, and those rated 4 or 5 

are in subgroup C. 

BIF-insured deposits (estimated) — the portion of estimated insured deposits that is insured by the BIF. For SAIFmember “Oakar” institutions, it represents the adjusted attributable amount acquired from BIF members. 

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 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. 

Earning assets — all loans and other investments that earn 

interest or dividend income. 

Efficiency Ratio — Noninterest expense less amortization 

of intangible assets as a percent of net interest income plus 

noninterest income. This ratio measures the proportion of net 

operating revenues that are absorbed by overhead expenses, so that a lower value indicates greater efficiency. 

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 

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 — all borrowings by FDIC insured institutions from the Federal Home Loan Bank System (FHLB) as 

furnished by the Federal Housing Finance Board (FHFB) for 

Call filers and reported by TFR filers. 

Goodwill and other intangibles — intangible assets 

include servicing rights, purchased credit card relationships 

and other identifiable intangible assets. 

Loans secured by real estate — includes home equity 

loans, junior liens secured by 1-4 family residential properties 

and all other loans secured by real estate. 

Loans to individuals — includes outstanding credit card 

balances and other secured and unsecured consumer loans. 

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

with remaining maturities or repricing intervals of over five years. 

Mortgage-backed securities — certificates of participation 

in pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored 

or private enterprises. Also, see “Securities”, below. 

Net charge-offs — total loans and leases charged off 

(removed from balance sheet because of uncollectibility), 

less amounts recovered on loans and leases previously 

charged off. 

Net interest margin — the difference between interest and 

dividends earned on interest-bearing assets and interest 

paid to depositors and other creditors, expressed as a percentage of average earning assets. No adjustments are 

made for interest income that is tax exempt. 

Net operating income — income excluding discretionary 

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

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

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

in nonaccrual status. 

Noncurrent loans & leases — the sum of loans and leases 

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

FDIC Quarterly Banking Profile 

Notes to Users 22 Fourth Quarter 1999 
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 swap, futures, forward and option contracts), foreign-exchange-rate contracts, commodity contracts 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 an underlying variable or index at a specified price or yield. These contracts 

exist for a variety of variables or indices, (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 an underlying variable or index 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 variable or index 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 (notional principal) of the underlying variable or 

index 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, FHLB advances, other borrowed 

money, mortgage indebtedness, obligations under capitalized leases and trading liabilities, less revaluation losses on 

assets held in trading accounts. 

Other real estate owned — primarily foreclosed property. 

Direct and indirect investments in real estate ventures are 

excluded. The amount is reflected net of valuation 

allowances. For institutions that file a Thrift Financial Report 

(TFR), the valuation allowance subtracted also includes 

allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported 

gross of valuation allowances. 

Percent of institutions with earnings gains — the percent 

of institutions that increased their net income (or decreased 

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

“Problem” institutions — federal regulators assign a composite rating to each financial institution, based upon an evaluation of financial and operational criteria. The rating is 

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

concern. “Problem” institutions are those institutions with 

financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending upon the 

degree of risk and supervisory concern, they are rated either 

a “4” or “5”. For all BIF-member institutions, and for all SAIFmember institutions for which the FDIC is the primary federal regulator, FDIC composite ratings are used. For all SAIFmember institutions whose primary federal regulator is the 

OTS, the OTS composite rating is used. 

Reserves for losses — the allowance for loan and lease 

losses and the allocated transfer risk reserve on a consolidated basis. Prior to March 31, 1997, institutions filing a Thrift 

Financial Report (TFR) included specific reserves, while Call 

Report filers included only general valuation allowances. 

Beginning March 31, 1997, TFR reporters net these specific 

reserves against each loan balance. Also beginning March 

31, 1997, the allowance for off-balance-sheet credit exposures was moved to “Other liabilities”; previously, it had been 

included in the general valuation allowance. 

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 offbalance-sheet accounts. 

SAIF-insured deposits (estimated) — the portion of estimated insured deposits that is insured by the SAIF. For BIFmember “Oakar” institutions, it represents the adjusted attributable amount acquired from SAIF members. 

Securities — excludes securities held in trading accounts. 

Banks’ securities portfolios consist of securities designated 

as “held-to-maturity”, which are reported at amortized cost 

(book value), and securities designated as “available-forsale”, reported at fair (market) value. 

Securities gains (losses) — realized gains (losses) on 

held-to-maturity and available-for-sale securities, before 

adjustments for income taxes. Thrift Financial Report (TFR) 

filers also include gains (losses) on the sales of assets held 

for sale. 

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. 

Unearned income & contra accounts — unearned income 

and loans-in-process for TFR filers. Beginning March 31 

1997, TFR filers net the unearned income and the loans-inprocess against each loan balance, leaving just the 

unearned income on loans reported by Call Report filers. 

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. 

Yield on earning assets — total interest, dividend and fee 

income earned on loans and investments as a percentage of 

average earning assets. 

FDIC Quarterly Banking Profile 

Fourth Quarter 1999 23 Notes to Users