Quarterly Banking Profile
 

SECOND QUARTER 2003 

�	 Gains On Sales Of Securities And Other Assets Propel Net Income 

To Record $30.2 Billion 

�	 Net Interest Margins Remain Under Pressure 

�	 Credit Quality Indicators Continue To Show Improvement 

�	 Asset Growth Sets New Quarterly Record 

Earnings, Profitability Remain at Record Levels 

Low interest rates continued to stimulate loan demand, 

and a strengthening economy was evidenced by 

improving asset quality, as FDIC-insured institutions 

registered a second consecutive quarter of record profits. 

The low interest-rate environment enabled banks and 

thrifts to realize record gains on sales of securities and 

other assets, which provided a significant boost to 

industry results. Second-quarter net income totaled 

$30.2 billion, surpassing the earnings record of $29.4 

billion set in the first quarter. Industry earnings were 

up by $3.0 billion (11.0 percent) over the second quarter of 2002. The industry’s return on assets (ROA) 

remained at the record-high level of 1.38 percent registered in the first quarter. A year ago, the industry ROA 

was 1.37 percent. More than half of all institutions (57 

percent) reported higher earnings than a year ago, 

while 47 percent had improved ROAs, and 55 percent 

reported quarterly ROAs of 1 percent or higher. Only 

533 institutions reported a net loss for the quarter, 

down from 676 in the second quarter of 2002. This is 

the lowest number of unprofitable institutions since 496 

reported net losses in the first quarter of 1998. 

Asset Sales Gains Are Key to Growth in Profits 

Insured institutions realized $4.9 billion in pretax gains 

on sales of securities and other assets in the second 

quarter, up from $3.7 billion in the first quarter. These 

and other nonrecurring gains accounted for all but $39 

million of the $859-million improvement in industry 

net income. Increased noninterest revenues and net 

interest income and lower expenses for credit losses also 

contributed to the higher earnings. Noninterest 

income was $1.8 billion (3.8 percent) above the level 

of the first quarter, but was limited by a $1.3-billion 

decline in servicing fees. This decline reflected a 

reduction in the value of mortgage servicing assets 

caused by the high level of mortgage refinancing activity. Provisions for loan losses were $333 million (3.2 

percent) lower than in the previous quarter. Net interest income was $656 million higher, but this was only a 

0.9-percent increase. Net income from international 

operations was $335 million (16.0 percent) higher than 

in the first quarter. 

Falling Short-Term Rates Continue to Pressure Net 

Interest Margins 

The sluggish growth in net interest income was attributable to narrower net interest margins. The average 

margin fell to 3.74 percent in the second quarter, from 

3.80 percent in the first quarter. This is the fifth quarter in a row that the industry’s margin has declined, and 

it is now at the lowest level since the first quarter of 

2001. As short-term interest rates moved lower, asset 

Chart 1 

Industry Earnings Continue to Grow 

$ Billions 

40 

30 

20 

10 

0 

1999 2000 2001 2002 2003 

20.6 19.8 

22.2 20.4 

22.4 

17.3 

21.8 22.7 22.5 

20.1 20.8 22.0 

25.3 27.2 27.3 

29.4 30.2 

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

Securities and Other Gains/Losses, Net 

Net Operating Income 

FEDERAL DEPOSIT INSURANCE CORPORATION	 ALL FDIC-INSURED INSTITUTIONS 

25.5 
 

 

FDIC Quarterly Banking Profile 

yields declined faster than funding costs. Smaller 

institutions, with large proportions of core deposits 

in their liabilities, have experienced particular difficulties in passing along interest-rate decreases to 

their depositors in the current environment of very 

low short-term rates. Nevertheless, the average net 

interest margin at institutions with less than $100 

million in assets improved slightly, to 4.10 percent, 

from 4.08 percent in the first quarter. Larger institutions’ assets tend to reprice more quickly than 

assets at their smaller counterparts. At institutions 

with more than $100 million in assets, the average 

margin fell from 3.79 percent to 3.72 percent. More 

than half of all institutions – 51.4 percent – saw 

their net interest margins decline in the second 

quarter. A significant exception to the trend of narrowing margins was institutions that specialize in 

credit-card lending. Lower interest rates reduced 

their average funding costs, but the average yields of 

their assets increased during the quarter. 

Credit Cards and Mortgages Are Most Profitable 

Business Lines 

Institutions specializing in credit-card lending 

remained more than twice as profitable as the rest of 

the industry, while institutions with concentrations 

of residential mortgage assets continued to exhibit 

strong profitability. The average ROA at the industry’s 36 credit-card lenders was 4.04 percent in the 

second quarter, up from 3.66 percent in the first 

quarter. The average net interest margin for this 

group was 8.91 percent in the second quarter, compared to 8.39 percent in the first quarter. Noninterest income growth also contributed to the 

Chart 2 

improvement in profitability at credit-card lenders. 

Average ROA at the 1,044 institutions that specialize in mortgage lending was 1.50 percent in the second quarter, virtually unchanged from 1.49 percent 

in the previous quarter. Their profitability has been 

helped by higher gains on sales of securities and 

other assets. A year ago, the average ROA at mortgage lenders was 1.29 percent; while their ROA is 

up by 21 basis points, their core ROA, which 

excludes gains from securities and asset sales, is up 

by only 4 basis points, from 1.05 percent in the second quarter of 2002 to 1.09 percent in the most 

recent quarter. 

C&I Loans Continue to Lead Improving Trend in 

Credit Quality 

Banks and thrifts charged-off $10.2 billion in the 

second quarter, a decline of $118 million (1.1 percent) from the first quarter, and $1.0 billion (9.3 

percent) less than they charged-off in the second 

quarter of 2002. The average net charge-off rate 

was 0.79 percent, the lowest level in two years. Net 

charge-offs of commercial and industrial (C&I) 

loans were $167 million lower than in the first quarter, as charge-offs of C&I loans to non-U.S. borrowers fell by $204 million. Commercial real estate 

loan charge-offs were $73 million higher, and real 

estate construction loan charge-offs increased by 

$25 million. 

The industry’s inventory of noncurrent loans – those 

that are 90 days or more past due or in nonaccrual 

status – declined by $2.3 billion (3.5 percent) in the 

second quarter. This is the largest quarterly decline 

Chart 3 

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3.0 

3.5 

4.0 

4.5 

5.0 

Net Interest Margin (%) 

1999 2000 2001 2002 2003 

Assets < $100 Million 

Assets > $100 Million 

4.10 

3.72 

Margins Continue to Decline at Large Institutions 

0 

1 

2 

3 

4 

5 

6 

7 

8 

9 

Net Charge-off Rate (%) 

50 

100 

150 

200 

250 

300 

350 

400 

450 

Number of Bankruptcy Filings (Thousands) 

Credit Card Charge-Off Rates 

Personal 

Bankruptcy 

Filings 

1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 

Loss Rates Show Improvement Relative 

to Bankruptcies 

SECOND QUARTER 2003 2 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

since the fourth quarter of 1994, and marks the 

third quarter in a row that noncurrent loans have 

fallen. During that time, they have been reduced by 

$4.1 billion (5.9 percent). The amount of C&I 

loans that were noncurrent declined by $1.4 billion 

(5.4 percent) in the second quarter, while noncurrent credit-card loans fell by $338 million (6.2 percent), and noncurrent residential mortgage loans 

fell by $382 million (2.7 percent). 

Growth in Reserves and Capital Is Outstripped by 

Growth in Loans, Assets 

Banks and thrifts increased their equity capital by 

$20.1 billion (2.5 percent) in the second quarter, 

but their capital ratios declined as this growth failed 

to keep pace with stronger asset growth. Regulatory 

capital ratios nevertheless remained near historic 

highs. The core capital (leverage) ratio fell by only 

one basis point, from 7.88 percent to 7.87 percent. 

The tier 1 risk-based capital ratio fell by three basis 

points, from an all-time high of 10.61 percent to 

10.58 percent. The total risk-based capital ratio fell 

from the record level of 13.20 percent to 13.16 percent. Reserves for loan losses increased by only $7 

million, but the reduction in noncurrent loans 

meant that the industry’s “coverage ratio” improved 

from $1.28 in reserves for every $1.00 in noncurrent 

loans to $1.32, the highest level in two years. The 

industry’s ratio of reserves to total loans fell, however (from 1.67 percent to 1.64 percent), because of 

strong loan growth. 

Mortgage Asset Growth Remains Strong 

Residential mortgage-related assets including home 

equity loans increased by $139 billion in the second 

quarter, after growing by $116 billion in the first 

quarter. Residential mortgage loans and home equity loans accounted for $86.6 billion (71.9 percent) 

of the $120.3-billion increase in total loans. The 

$52.3-billion increase in mortgage-backed securities 

represented 77.6 percent of the $67.4-billion 

increase in the industry’s securities holdings. 

Growth in nonmortgage assets rose even more 

sharply, from a $53.7-billion increase in the first 

quarter to a $178.3-billion increase in the second 

quarter. Real estate loans other than residential 

mortgage and home equity loans accounted for 21.7 

percent ($26.1 billion) of the growth in total loans. 

The $317-billion (3.7 percent) increase in total 

industry assets was the largest quarterly increase 

ever, easily eclipsing the previous record of $234 billion recorded in the third quarter of last year. The 

steepening yield curve prompted institutions to 

increase the share of longer-term assets in their portfolios; securities maturing in 5 years or more 

increased by $84.8 billion (13.5 percent) during the 

quarter, while securities maturing in less than 5 

years declined by $17.4 billion. 

Small C&I Loans Register First Annual Decline 

in 10 Years 

C&I loans declined for the tenth consecutive quarter, falling by $14.9 billion (1.6 percent). As has 

been the case throughout this period of shrinkage, 

most of the decline was concentrated in a relatively 

Chart 4 Chart 5 

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 0 

10 

20 

30 

40 

$ Billions 

Quarterly Net Charge-offs 

Noncurrent Loans 

1998 1999 2000 2001 2002 

8.7 

C&I Portfolios Stay On Improving Trend 

1 2 

27.9 

3.1 

24.8 

2003 

558.5 

645.6 630.9 

548.6 525.0 

224.6 247.4 261.2 270.8 267.9 

1999 2000 2001 2002 2003 

0 

200 

400 

600 

800 

$ Billions 

Small Businesses (Original loan amounts < $1 Million) 

Medium/Large Businesses (Original loan amounts > $1 Million) 

Small C&I Loans Join Larger Loans in 

12-Month Decline 

ALL FDIC-INSURED INSTITUTIONS 3 SECOND QUARTER 2003 
FDIC Quarterly Banking Profile 

few large banks; if five banks are excluded, the rest 

of the industry would show a net increase in C&I 

loans in the second quarter. The June 30 reports 

filed by insured institutions provide an annual 

update of loans to small businesses. In the 12 

months ended June 30, C&I loans in original 

amounts of $1 million or less declined by $2.9 billion (1.1 percent). During that period, total C&I 

loans fell by $41.2 billion (4.2 percent). The 12­

month decline in small C&I loans was concentrated 

in larger banks; 3 banks had declines in excess of $1 

billion each, and their combined reduction in small 

C&I loans totaled $6.2 billion. This is the first time 

in the 10 years that small business loan data have 

been collected under current definitions that total 

small C&I loans have registered a 12-month 

decline. 

Deposit Growth Lags Behind Growth in Assets 

Even though total deposits registered their thirdhighest quarterly increase ever1 during the second 

quarter, this growth ($165.9 billion, or 2.9 percent) 

failed to keep pace with the increase in industry 

assets. Demand deposits increased by $31.9 billion 

(5.5 percent). Brokered deposits had their largest 

quarterly decline ever, falling by $14.0 billion (4.6 

percent). Nondeposit liabilities increased by $131.2 

billion (6.1 percent), with short-term borrowings 

accounting for $76.0 billion (57.9 percent) of the 

increase. At commercial banks, savings deposits 

increased by $95.9 billion (4.2 percent), accounting 

for 78.6 percent of all domestic deposit growth at 

these institutions. 

Mergers and New Charters Remain at Low Levels 

The number of insured institutions reporting financial results declined from 9,314 to 9,267 during the 

second quarter. During the quarter, 66 institutions 

were absorbed by mergers, one more than in the first 

quarter. Through the first six months of 2002, there 

were 181 institutions absorbed by mergers. Twentyfour new charters were added during the second 

quarter, bringing the total for the first six months of 

2003 to 50; in the same period of 2002, 43 new 

charters were added. The number of “Problem” 

institutions declined for the second consecutive 

quarter, falling from to 125 from 129 at the end of 

March. Assets of “Problem” institutions declined 

from $35 billion to $32 billion. During the quarter, 

five mutually-owned savings institutions, with assets 

of $734 million, converted to stock ownership. 

1 Total deposits increased by $183.0 billion in the 4th quarter of 1998, and by $176.5 

billion in the 4th quarter of 2002. 

Chart 6 

Mergers and Chartering Activity 

Remain Subdued 

Number of Institutions 

0 

50 

100 

150 

200 

Failures 

Mergers 

New Charters 

1999 2000 2001 2002 2003 

SECOND QUARTER 2003 4 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

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

2003** 2002** 2002 2001 2000 1999 1998 

Return on assets (%) ............................................................... 1.38 1.34 1.30 1.14 1.14 1.25 1.16 

Return on equity (%) ................................................................ 15.04 14.64 14.14 12.98 13.53 14.71 13.50 

Core capital (leverage) ratio (%) .............................................. 7.87 8.03 7.87 7.78 7.71 7.80 7.59 

Noncurrent assets plus 

other real estate owned to assets (%) ................................... 0.81 0.91 0.90 0.88 0.71 0.63 0.66 

Net charge-offs to loans (%) .................................................... 0.80 0.96 0.97 0.83 0.59 0.53 0.59 

Asset growth rate (%) ............................................................... 10.99 5.28 7.20 5.46 8.40 5.40 8.05 

Net interest margin (%) ............................................................ 3.76 4.03 3.96 3.78 3.78 3.90 3.91 

Net operating income growth (%) ............................................ 6.58 17.93 18.51 -0.81 1.75 19.72 3.02 

Number of institutions reporting ............................................... 9,267 9,466 9,354 9,614 9,905 10,222 10,464 

Commercial banks ................................................................ 7,833 7,967 7,888 8,080 8,316 8,580 8,774

 Savings institutions ............................................................... 1,434 1,499 1,466 1,534 1,589 1,642 1,690 

Percentage of unprofitable institutions (%) .............................. 5.32 6.79 6.59 8.22 7.54 7.64 5.97 

Number of problem institutions .......................................... 125 136 136 114 94 79 84 

Assets of problem institutions (in billions) ................................ $32 $40 $39 $40 $24 $10 $11 

Number of failed/assisted institutions ...................................... 2 8 11 4 7 8 3 

* Excludes insured branches of foreign banks (IBAs)
 

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

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

(dollar figures in millions) 2nd Quarter 1st Quarter 2nd Quarter %Change 

2003 2003 2002 02:2-03:2 

Number of institutions reporting ............................................................................ 9,267 9,314 9,466 -2.1 

Total employees (full-time equivalent) .................................................................. 2,088,614 2,029,746 2,009,898 3.9 

CONDITION DATA 

Total assets ..........................................................................................................
 $8,922,869 $8,605,714 $8,039,040 11.0 

Loans secured by real estate ............................................................................ 3,038,321 2,925,664 2,627,941 15.6 

1-4 Family residential mortgages ................................................................... 1,612,695 1,545,880 1,365,041 18.1
 

Commercial real estate ................................................................................... 652,471 641,564 599,681 8.8
 

Construction and development ....................................................................... 256,926 250,558 235,966 8.9
 

Home equity lines ........................................................................................... 295,862 276,091 223,711 32.3
 

Commercial & industrial loans ........................................................................... 934,352 949,295 975,514 -4.2
 

Loans to individuals ........................................................................................... 764,172 753,102 728,754 4.9
 

Credit cards .................................................................................................... 269,845 265,952 267,749 0.8
 

Farm loans ......................................................................................................... 46,255 44,677 48,126 -3.9
 

Other loans & leases ......................................................................................... 466,821 456,836 443,303 5.3
 

Less: Unearned income ..................................................................................... 3,589 3,622 3,988 -10.0
 

Total loans & leases .......................................................................................... 5,246,331 5,125,951 4,819,649 8.9
 

Less: reserve for losses ..................................................................................... 85,864 85,857 82,407 4.2
 

Net loans and leases ......................................................................................... 5,160,467 5,040,094 4,737,242 8.9
 

Securities ........................................................................................................... 1,761,702 1,694,336 1,530,223 15.1
 

Other real estate owned .................................................................................... 5,527 5,438 4,912 12.5
 

Goodwill and other intangibles ..........................................................................
 158,826 156,806 153,536 3.4 

All other assets .................................................................................................. 1,836,347 1,709,041 1,613,128 13.8 

Total liabilities and capital ..................................................................................... 8,922,869 8,605,714 8,039,040 11.0
 

Deposits ............................................................................................................. 5,844,501 5,678,566 5,254,190 11.2
 

Domestic office deposits ................................................................................. 5,166,438 5,025,755 4,613,285 12.0
 

Foreign office deposits ...................................................................................
 678,062 652,811 640,905 5.8
 

Other borrowed funds ........................................................................................ 1,671,561 1,590,696 1,529,634 9.3
 

Subordinated debt ............................................................................................. 102,826 100,507 97,016 6.0
 

All other liabilities ............................................................................................... 492,447 444,461 414,817 18.7
 

Equity capital ..................................................................................................... 811,534 791,485 743,382 9.2
 

Loans and leases 30-89 days past due ................................................................ 52,099 55,423 53,556 -2.7
 

Noncurrent loans and leases ................................................................................ 64,842 67,189 65,834 -1.5
 

Restructured loans and leases ............................................................................. 3,312 2,928 3,315 -0.1
 

Direct and indirect investments in real estate ....................................................... 692 709 700 -1.1
 

Mortgage-backed securities .................................................................................. 1,034,425 978,777 855,453 20.9
 

Earning assets ...................................................................................................... 7,682,057 7,457,524 6,973,030 10.2
 

FHLB advances .................................................................................................... 453,436 448,827 442,050 2.6
 

Unused loan commitments ................................................................................... 5,903,227 5,786,642 5,514,512 7.0
 

Trust assets .......................................................................................................... 11,891,918 10,709,920 11,486,140 3.5
 

Assets securitized and sold***............................................................................... 880,763 850,160 879,997 0.1
 

Notional amount of derivatives*** ......................................................................... 66,477,306 61,914,959 50,875,478 30.7
 

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

INCOME DATA 2003 2002 %Change 2003 2002 02:2-03:2 

Total interest income ................................................................................ $205,155 $217,191 -5.5 $102,565 $109,012 -5.9 

Total interest expense .............................................................................. 64,854 79,202 -18.1 31,972 39,980 -20.0 

Net interest income ............................................................................... 140,300 137,989 1.7 70,593 69,033 2.3
 

Provision for loan and lease losses .........................................................
 20,210 24,252 -16.7 9,962 11,996 -17.0
 

Total noninterest income .......................................................................... 97,558 90,372 8.0 49,754 45,597 9.1
 

Total noninterest expense ........................................................................ 137,216 128,411 6.9 70,194 64,634 8.6
 

Securities gains (losses) .......................................................................... 8,548 3,667 133.1 4,871 2,312 110.7
 

Applicable income taxes .......................................................................... 29,448 26,452 11.3 14,852 13,180 12.7
 

Extraordinary gains, net ........................................................................... 1 38 -96.5 21 115 -81.7
 

Net income ............................................................................................ 59,533 52,952 12.4 30,232 27,245 11.0
 

From international operations ............................................................ 4,525 3,658 23.7 2,430 2,033 19.5
 

Net charge-offs ........................................................................................
 20,548 22,862 -10.1 10,242 11,287 -9.3 

Cash dividends ........................................................................................ 42,124 37,344 12.8 24,585 16,197 51.8 

Retained earnings .................................................................................... 17,409 15,608 11.5 5,646 11,048 48.9 

Net operating income ............................................................................ 53,757 50,440 6.6 26,922 25,589 5.2 

*** Commercial banks only. 

ALL FDIC-INSURED INSTITUTIONS 5 SECOND QUARTER 2003 
FDIC Quarterly Banking Profile 

TABLE III-A. Second Quarter 2003, All FDIC-Insured Institutions 

SECOND QUARTER 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

International 

Banks 

Agricultural 

Banks 

Credit Card 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

9,267 7 1,826 36 4,116 1,044 183 524 1,430 101 

Commercial banks .............................................. 7,833 7 1,821 34 3,772 257 138 446 1,274 84 

Savings institutions ............................................. 1,434 0 5 2 344 787 45 78 156 17 

Total assets (in billions) ......................................... $8,922.9 $1,484.3 $127.7 $239.4 $3,117.3 $1,407.4 $379.6 $64.6 $195.5 $1,907.0 

Commercial banks .............................................. 7,485.0 1,484.3 127.2 235.1 2,891.2 383.0 330.3 47.9 159.5 1,826.5 

Savings institutions ............................................. 1,437.8 0.0 0.4 4.3 226.2 1,024.4 49.3 16.6 36.1 80.5 

Total deposits (in billions) ...................................... 5,844.5 856.2 105.2 79.8 2,261.3 850.1 198.9 49.0 159.9 1,284.1 

Commercial banks .............................................. 4,926.0 856.2 104.8 76.9 2,107.1 212.3 168.5 36.7 131.3 1,232.3 

Savings institutions ............................................. 918.5 0.0 0.4 2.9 154.2 637.8 30.4 12.4 28.6 51.9 

Net income (in millions) ......................................... 30,232 4,124 402 2,383 10,105 5,206 1,388 104 525 5,995 

Commercial banks .............................................. 25,517 4,124 401 2,364 9,312 1,793 1,229 57 458 5,780 

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

Performance Ratios (annualized,%) 

4,715 0 1 20 794 3,413 159 47 67 215 

Yield on earning assets ......................................... 5.43 4.96 6.00 11.13 5.60 5.27 6.05 4.43 5.74 4.66 

Cost of funding earning assets .............................. 1.69 1.83 1.97 2.22 1.62 2.01 1.47 1.62 1.88 1.39 

Net interest margin ............................................. 3.74 3.13 4.03 8.91 3.98 3.25 4.59 2.80 3.86 3.27 

Noninterest income to assets ................................ 2.27 3.24 0.72 12.39 1.64 1.27 2.43 5.57 1.03 2.14 

Noninterest expense to assets .............................. 3.21 3.61 2.68 9.77 3.02 2.35 3.48 6.72 3.02 2.90 

Loan and lease loss provision to assets ................ 0.46 0.61 0.21 4.02 0.40 0.15 0.63 0.17 0.24 0.22 

Net operating income to assets ............................. 1.23 0.98 1.23 4.04 1.21 1.09 1.47 0.56 1.00 1.20 

Pretax return on assets ......................................... 2.06 1.72 1.57 6.34 1.92 2.32 2.36 1.30 1.42 1.89 

Return on assets ................................................... 1.38 1.14 1.27 4.04 1.31 1.50 1.49 0.65 1.08 1.29 

Return on equity .................................................... 15.10 15.12 11.71 24.02 14.02 16.61 17.53 4.21 9.83 14.82 

Net charge-offs to loans and leases ...................... 0.79 1.56 0.25 5.46 0.56 0.18 0.89 0.55 0.30 0.56 

Loan and lease loss provision to net charge-offs .. 97.27 96.54 139.38 93.38 106.36 129.95 87.29 114.70 139.06 76.74 

Efficiency ratio ....................................................... 57.14 62.46 60.37 46.72 56.71 55.29 53.63 81.33 65.75 58.24 

% of unprofitable institutions ................................. 5.75 28.57 3.50 2.78 6.24 4.60 2.19 16.03 4.76 4.95 

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

Structural Changes 

57.05 28.57 45.62 77.78 67.49 54.12 58.47 34.35 51.82 52.48 

New Charters ..................................................... 24 0 0 0 4 2 0 18 0 0 

Institutions absorbed by mergers ....................... 66 0 7 0 40 6 1 1 4 7 

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

PRIOR SECOND QUARTERS 

(The way it was...) 

1 0 1 0 0 0 0 0 0 0 

Return on assets (%) .................................. 2002 1.37 1.17 1.30 3.68 1.28 1.29 1.60 1.69 1.20 1.35 

.............................................. 2000 0.98 0.99 1.35 2.16 0.92 0.90 1.20 1.99 1.17 0.63 

.............................................. 1998 1.22 0.92 1.33 2.65 1.22 1.13 1.34 1.56 1.22 1.58 

Net charge-offs to loans & leases (%) ......... 2002 0.94 1.48 0.30 5.78 0.73 0.17 1.01 0.67 0.31 0.70 

.............................................. 2000 0.51 0.47 0.19 3.68 0.41 0.11 0.13 0.37 0.25 0.51 

.............................................. 1998 0.55 0.45 0.20 4.93 0.34 0.16 0.71 0.66 0.28 0.52 

* See page 8 for explanations. 

SECOND QUARTER 2003 6 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE III-A. Second Quarter 2003, All FDIC-Insured Institutions 

SECOND QUARTER 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

9,267 4,509 4,182 466 110 1,194 1,236 2,034 2,145 1,884 774 

Commercial banks .............................................. 7,833 4,026 3,386 340 81 623 1,077 1,667 2,034 1,747 685 

Savings institutions ............................................. 1,434 483 796 126 29 571 159 367 111 137 89 

Total assets (in billions) ......................................... $8,922.9 $231.4 $1,153.4 $1,303.1 $6,235.0 $3,053.9 $1,867.2 $1,678.2 $439.6 $596.5 $1,287.4 

Commercial banks .............................................. 7,485.0 206.3 896.8 968.2 5,413.8 2,540.6 1,743.2 1,539.9 394.2 505.1 762.0 

Savings institutions ............................................. 1,437.8 25.1 256.6 334.9 821.3 513.3 124.0 138.3 45.5 91.3 525.3 

Total deposits (in billions) ...................................... 5,844.5 193.5 925.8 874.4 3,850.7 1,920.5 1,252.0 1,113.0 303.0 448.8 807.1 

Commercial banks .............................................. 4,926.0 173.5 729.7 652.5 3,370.2 1,574.9 1,165.4 1,009.5 274.6 395.2 506.3 

Savings institutions ............................................. 918.5 20.0 196.1 221.8 480.6 345.6 86.7 103.5 28.4 53.6 300.7 

Net income (in millions) ......................................... 30,232 519 3,419 4,809 21,484 9,348 6,274 5,578 1,722 2,088 5,222 

Commercial banks .............................................. 25,517 451 2,842 3,683 18,541 7,830 5,948 5,134 1,626 1,657 3,322 

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

Performance Ratios (annualized,%) 

4,715 67 578 1,126 2,943 1,518 326 445 96 431 1,900 

Yield on earning assets ......................................... 5.43 5.99 5.86 5.58 5.28 5.25 5.38 5.26 6.30 5.63 5.70 

Cost of funding earning assets .............................. 1.69 1.88 1.89 1.75 1.63 1.82 1.66 1.71 1.73 1.57 1.47 

Net interest margin ............................................. 3.74 4.10 3.97 3.83 3.65 3.43 3.72 3.55 4.57 4.05 4.23 

Noninterest income to assets ................................ 2.27 1.46 1.35 2.18 2.50 2.65 2.09 1.89 2.67 2.00 2.13 

Noninterest expense to assets .............................. 3.21 3.79 3.18 3.29 3.17 3.31 3.14 2.83 3.92 3.65 3.10 

Loan and lease loss provision to assets ................ 0.46 0.26 0.26 0.40 0.51 0.52 0.29 0.48 0.75 0.26 0.49 

Net operating income to assets ............................. 1.23 0.84 1.12 1.32 1.25 1.12 1.26 1.16 1.49 1.28 1.43 

Pretax return on assets ......................................... 2.06 1.24 1.67 2.20 2.13 1.89 2.02 1.99 2.25 1.92 2.61 

Return on assets ................................................... 1.38 0.91 1.20 1.50 1.41 1.25 1.39 1.35 1.57 1.42 1.64 

Return on equity .................................................... 15.10 7.92 11.94 14.57 16.28 14.16 15.42 15.70 14.71 14.79 16.26 

Net charge-offs to loans and leases ...................... 0.79 0.29 0.31 0.65 0.94 1.14 0.57 0.68 1.05 0.39 0.70 

Loan and lease loss provision to net charge-offs .. 97.27 148.44 130.80 100.76 93.82 93.28 83.88 109.73 104.72 110.49 100.09 

Efficiency ratio ....................................................... 57.14 72.49 63.19 57.10 55.59 58.83 58.70 54.28 56.16 63.95 51.94 

% of unprofitable institutions ................................. 5.75 8.98 2.68 3.00 1.82 5.86 8.41 5.01 3.59 5.79 9.17 

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

Structural Changes 

57.05 51.14 62.41 64.16 65.45 60.72 62.38 59.69 51.93 49.47 68.60 

New Charters ..................................................... 24 21 3 0 0 2 5 0 1 5 11 

Institutions absorbed by mergers ....................... 66 32 28 4 2 8 13 16 13 10 6 

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

PRIOR SECOND QUARTERS 

(The way it was...) 

1 1 0 0 0 0 0 1 0 0 0 

Return on assets (%) .................................. 2002 1.37 1.17 1.30 3.68 1.28 1.29 1.60 1.69 1.20 1.35 1.53 

.............................................. 2000 0.98 0.99 1.35 2.16 0.92 0.90 1.20 1.99 1.17 0.63 1.32 

.............................................. 1998 1.22 0.92 1.33 2.65 1.22 1.13 1.34 1.56 1.22 1.58 1.33 

Net charge-offs to loans & leases (%) ......... 2002 0.94 1.48 0.30 5.78 0.73 0.17 1.01 0.67 0.31 0.70 0.81 

.............................................. 2000 0.51 0.47 0.19 3.68 0.41 0.11 0.13 0.37 0.25 0.51 0.62 

.............................................. 1998 0.55 0.45 0.20 4.93 0.34 0.16 0.71 0.66 0.28 0.52 0.57 

* See page 9 for explanations. 

ALL FDIC-INSURED INSTITUTIONS 7 SECOND QUARTER 2003 
FDIC Quarterly Banking Profile 

TABLE IV-A. First-Half 2003, All FDIC-Insured Institutions 

FIRST HALF 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

International 

Banks 

Agricultural 

Banks 

Credit Card 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

9,267 7 1,826 36 4,116 1,044 183 524 1,430 101 

Commercial banks ................................................ 7,833 7 1,821 34 3,772 257 138 446 1,274 84 

Savings institutions ............................................... 1,434 0 5 2 344 787 45 78 156 17 

Total assets (in billions) ........................................... $8,922.9 $1,484.3 $127.7 $239.4 $3,117.3 $1,407.4 $379.6 $64.6 $195.5 $1,907.0 

Commercial banks ................................................ 7,485.0 1,484.3 127.2 235.1 2,891.2 383.0 330.3 47.9 159.5 1,826.5 

Savings institutions ............................................... 1,437.8 0.0 0.4 4.3 226.2 1,024.4 49.3 16.6 36.1 80.5 

Total deposits (in billions) ........................................ 5,844.5 856.2 105.2 79.8 2,261.3 850.1 198.9 49.0 159.9 1,284.1 

Commercial banks ................................................ 4,926.0 856.2 104.8 76.9 2,107.1 212.3 168.5 36.7 131.3 1,232.3 

Savings institutions ............................................... 918.5 0.0 0.4 2.9 154.2 637.8 30.4 12.4 28.6 51.9 

Net income (in millions) ........................................... 59,533 8,241 787 4,582 20,054 10,159 2,773 301 1,044 11,593 

Commercial banks ................................................ 50,395 8,241 785 4,546 18,535 3,522 2,457 210 913 11,186 

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

Performance Ratios (annualized,%) 

9,138 0 2 36 1,519 6,636 317 91 131 406 

Yield on earning assets ........................................... 5.50 5.05 6.04 10.86 5.68 5.38 6.10 4.48 5.84 4.72 

Cost of funding earning assets ................................ 1.74 1.86 2.03 2.28 1.68 2.08 1.49 1.67 1.94 1.42 

Net interest margin ............................................... 3.76 3.19 4.01 8.58 4.00 3.30 4.61 2.81 3.90 3.31 

Noninterest income to assets .................................. 2.26 3.22 0.70 11.92 1.63 1.26 2.51 5.49 1.01 2.11 

Noninterest expense to assets ................................ 3.18 3.56 2.68 9.37 3.00 2.32 3.46 6.42 3.04 2.88 

Loan and lease loss provision to assets .................. 0.47 0.64 0.21 3.97 0.39 0.15 0.64 0.13 0.22 0.25 

Net operating income to assets ............................... 1.24 1.01 1.21 3.84 1.23 1.13 1.50 0.86 1.01 1.19 

Pretax return on assets ........................................... 2.06 1.73 1.55 6.03 1.93 2.31 2.43 1.57 1.43 1.87 

Return on assets ..................................................... 1.38 1.15 1.24 3.84 1.32 1.49 1.53 0.95 1.08 1.27 

Return on equity ...................................................... 15.04 15.25 11.53 23.59 14.10 16.48 17.95 6.15 9.86 14.35 

Net charge-offs to loans and leases ........................ 0.80 1.58 0.20 5.44 0.56 0.18 0.90 0.45 0.28 0.58 

Loan and lease loss provision to net charge-offs .... 98.36 99.30 163.69 92.33 104.88 129.65 90.10 100.98 139.01 85.06 

Efficiency ratio ......................................................... 56.52 61.18 60.85 46.52 56.39 54.10 52.75 78.99 65.83 57.73 

% of unprofitable institutions ................................... 5.32 0.00 3.18 2.78 5.83 4.69 2.73 14.31 4.34 2.97 

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

Condition Ratios(%) 

60.45 57.14 49.34 61.11 70.70 59.39 55.74 42.18 53.99 49.50 

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

Loss allowance to: 

86.09 76.66 91.91 87.32 89.12 90.76 87.63 88.80 91.60 83.54 

Loans and leases ................................................. 1.64 2.45 1.52 4.96 1.57 0.76 1.18 1.60 1.35 1.66 

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

Noncurrent assets plus

132.42 103.13 106.69 271.96 147.88 85.99 128.42 157.37 122.39 133.80 

other real estate owned to assets ........................ 0.81 1.00 1.00 1.53 0.81 0.66 0.81 0.42 0.74 0.67 

Equity capital ratio ................................................... 9.09 7.46 10.87 17.09 9.39 9.01 8.58 15.34 11.04 8.51 

Core capital (leverage) ratio .................................... 7.87 6.51 10.11 16.54 8.17 7.57 7.13 13.83 10.26 7.07 

Tier 1 risk-based capital ratio .................................. 10.58 9.23 14.73 14.70 9.97 12.90 8.79 29.76 17.00 9.65 

Total risk-based capital ratio ................................... 13.16 12.65 15.87 17.28 12.25 14.71 12.47 30.95 18.14 12.63 

Net loans and leases to deposits ............................ 88.30 67.48 74.03 225.34 90.35 107.45 153.48 34.43 67.81 73.05 

Net loans to total assets .......................................... 57.83 38.92 60.98 75.08 65.54 64.90 80.42 26.15 55.46 49.19 

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

Structural Changes 

57.90 27.43 82.38 28.68 70.63 59.08 48.51 74.83 81.77 60.81 

New Charters ....................................................... 50 0 1 0 12 2 0 35 0 0 

Institutions absorbed by mergers ......................... 131 0 13 0 84 16 2 2 6 8 

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

PRIOR FIRST HALVES 

(The way it was...) 

2 0 1 0 1 0 0 0 0 0 

Number of institutions ................................. 2002 9,466 6 1,892 47 4,079 1,168 216 440 1,526 92 

.............................................. 2000 10,102 7 2,086 61 3,929 1,325 315 521 1,776 82 

.............................................. 1998 10,713 11 2,400 69 3,404 1,532 283 596 2,319 99 

Total assets (in billions) .............................. 2002 $8,039.0 $1,294.8 $123.3 $299.4 $3,356.5 $1,191.9 $163.2 $48.4 $189.7 $1,371.8 

.............................................. 2000 7,163.5 1,125.5 122.2 265.4 3,754.1 1,018.4 84.1 50.3 209.6 533.9 

.............................................. 1998 6,229.5 1,445.7 123.7 210.7 2,539.8 967.4 84.4 61.1 281.2 515.5 

Return on assets (%) .................................. 2002 1.34 0.99 1.28 3.44 1.30 1.29 1.52 1.31 1.19 1.33 

.............................................. 2000 1.13 1.15 1.31 2.51 1.09 1.01 1.19 1.98 1.17 0.77 

.............................................. 1998 1.22 0.88 1.30 2.61 1.27 1.10 1.31 1.63 1.22 1.49 

Net charge-offs to loans & leases (%) ........ 2002 0.96 1.49 0.24 6.42 0.67 0.16 1.04 0.51 0.28 0.76 

.............................................. 2000 0.51 0.48 0.16 3.80 0.39 0.12 0.18 0.46 0.21 0.50 

.............................................. 1998 

Noncurrent assets plus

0.55 0.47 0.15 4.84 0.33 0.17 0.69 0.70 0.24 0.55 

OREO to assets (%) ............................ 2002 0.91 1.16 0.94 1.54 0.89 0.66 1.22 0.35 0.68 0.82 

.............................................. 2000 0.65 0.68 0.76 1.42 0.65 0.46 0.97 0.28 0.56 0.57 

.............................................. 1998 0.68 0.61 0.80 1.71 0.65 0.69 0.98 0.36 0.60 0.60 

Equity capital ratio (%) ................................ 2002 9.25 7.20 10.82 15.64 9.62 9.10 8.56 17.54 10.53 8.46 

.............................................. 2000 8.37 6.74 10.27 13.04 8.44 7.92 8.13 15.45 10.03 8.07 

.............................................. 1998 8.66 6.46 10.89 14.95 9.05 8.70 8.81 14.52 10.22 8.14 

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

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

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

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

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

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

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

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

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

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

activity with no identified asset concentrations.
 

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

activity with no identified asset concentrations.
 

SECOND QUARTER 2003 8 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE IV-A. First Half 2003, All FDIC-Insured Institutions 

FIRST HALF 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than $100 

Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

9,267 4,509 4,182 466 110 1,194 1,236 2,034 2,145 1,884 774 

Commercial banks .............................................. 7,833 4,026 3,386 340 81 623 1,077 1,667 2,034 1,747 685 

Savings institutions ............................................. 1,434 483 796 126 29 571 159 367 111 137 89 

Total assets (in billions) ......................................... $8,922.9 $231.4 $1,153.4 $1,303.1 $6,235.0 $3,053.9 $1,867.2 $1,678.2 $439.6 $596.5 $1,287.4 

Commercial banks .............................................. 7,485.0 206.3 896.8 968.2 5,413.8 2,540.6 1,743.2 1,539.9 394.2 505.1 762.0 

Savings institutions ............................................. 1,437.8 25.1 256.6 334.9 821.3 513.3 124.0 138.3 45.5 91.3 525.3 

Total deposits (in billions) ...................................... 5,844.5 193.5 925.8 874.4 3,850.7 1,920.5 1,252.0 1,113.0 303.0 448.8 807.1 

Commercial banks .............................................. 4,926.0 173.5 729.7 652.5 3,370.2 1,574.9 1,165.4 1,009.5 274.6 395.2 506.3 

Savings institutions ............................................. 918.5 20.0 196.1 221.8 480.6 345.6 86.7 103.5 28.4 53.6 300.7 

Net income (in millions) ......................................... 59,533 1,101 6,704 9,220 42,507 18,478 12,167 11,015 3,408 4,111 10,355 

Commercial banks .............................................. 50,395 975 5,577 7,055 36,788 15,492 11,485 10,218 3,215 3,312 6,673 

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

Performance Ratios (annualized,%) 

9,138 126 1,127 2,166 5,719 2,986 683 797 193 799 3,681 

Yield on earning assets ......................................... 5.50 6.02 5.93 5.63 5.36 5.34 5.43 5.34 6.36 5.68 5.77 

Cost of funding earning assets .............................. 1.74 1.94 1.95 1.80 1.67 1.87 1.69 1.76 1.77 1.61 1.53 

Net interest margin ............................................. 3.76 4.08 3.98 3.83 3.69 3.47 3.74 3.57 4.59 4.07 4.25 

Noninterest income to assets ................................ 2.26 1.41 1.32 2.09 2.50 2.65 2.09 1.91 2.61 1.93 2.06 

Noninterest expense to assets .............................. 3.18 3.70 3.17 3.22 3.15 3.29 3.13 2.84 3.87 3.59 3.00 

Loan and lease loss provision to assets ................ 0.47 0.23 0.25 0.39 0.53 0.55 0.30 0.48 0.78 0.27 0.49 

Net operating income to assets ............................. 1.24 0.91 1.11 1.30 1.27 1.13 1.25 1.18 1.48 1.29 1.48 

Pretax return on assets ......................................... 2.06 1.30 1.66 2.16 2.14 1.90 2.02 1.99 2.21 1.90 2.62 

Return on assets ................................................... 1.38 0.97 1.19 1.46 1.41 1.25 1.37 1.35 1.55 1.41 1.65 

Return on equity .................................................... 15.04 8.47 11.84 14.20 16.26 14.17 15.03 15.69 14.66 14.71 16.39 

Net charge-offs to loans and leases ...................... 0.80 0.24 0.29 0.59 0.98 1.19 0.59 0.66 1.04 0.38 0.67 

Loan and lease loss provision to net charge-offs .. 98.36 156.30 138.62 107.90 94.06 92.73 84.29 112.06 108.60 116.48 104.56 

Efficiency ratio ....................................................... 56.52 71.58 63.26 57.00 54.78 58.01 58.17 54.24 55.87 63.52 50.75 

% of unprofitable institutions ................................. 5.32 8.87 2.10 0.86 0.91 5.44 8.17 4.57 3.08 5.25 8.91 

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

Condition Ratios(%) 

60.45 54.93 65.54 66.31 68.18 62.98 66.50 62.98 55.10 53.66 71.58 

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

Loss allowance to: 

86.09 91.56 91.68 90.87 83.86 83.13 84.94 88.21 90.23 89.83 88.91 

Loans and leases ............................................... 1.64 1.40 1.35 1.52 1.73 2.01 1.47 1.63 1.86 1.35 1.27 

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

Noncurrent assets plus

132.42 113.12 143.12 158.34 127.47 120.34 148.40 123.95 183.52 127.77 145.97 

other real estate owned to assets ...................... 0.81 0.93 0.74 0.66 0.84 0.87 0.66 0.95 0.79 0.79 0.69 

Equity capital ratio ................................................. 9.09 11.44 10.07 10.33 8.57 8.80 8.80 8.58 10.76 9.57 10.12 

Core capital (leverage) ratio .................................. 7.87 10.98 9.48 9.14 7.17 7.54 7.49 7.85 9.74 8.54 8.22 

Tier 1 risk-based capital ratio ................................ 10.58 16.78 13.80 13.23 9.32 10.59 9.43 9.81 13.64 12.64 11.49 

Total risk-based capital ratio ................................. 13.16 17.89 14.98 14.96 12.36 13.34 12.07 12.77 15.01 14.19 13.93 

Net loans and leases to deposits .......................... 88.30 71.98 78.55 90.33 91.00 75.87 87.49 95.15 96.13 79.53 111.61 

Net loans to total assets ........................................ 57.83 60.21 63.05 60.61 56.20 47.71 58.66 63.10 66.26 59.84 69.97 

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

Structural Changes 

57.90 83.66 80.15 66.36 51.06 46.66 62.78 61.90 67.82 74.99 60.96 

New Charters ..................................................... 50 47 3 0 0 4 17 3 4 7 15 

Institutions absorbed by mergers ....................... 131 61 61 7 2 21 20 30 24 18 18 

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

PRIOR FIRST HALVES 

(The way it was...) 

2 1 1 0 0 0 0 1 0 0 1 

Number of institutions ................................. 2002 9,466 4,918 4,002 446 100 1,235 1,245 2,086 2,192 1,923 785 

.............................................. 2000 10,102 5,682 3,893 426 101 1,307 1,327 2,249 2,307 2,066 846 

.............................................. 1998 10,713 6,372 3,812 447 82 1,378 1,360 2,411 2,434 2,263 867 

Total assets (in billions) .............................. 2002 $8,039.0 $247.5 $1,083.4 $1,292.9 $5,415.2 $2,762.6 $1,614.6 $1,514.1 $420.5 $555.5 $1,171.6 

.............................................. 2000 7,163.5 269.2 1,012.6 1,200.5 4,681.2 2,437.9 1,561.0 1,194.4 461.2 566.6 942.4 

.............................................. 1998 6,229.5 296.9 982.1 1,272.8 3,677.8 2,258.2 1,042.9 1,016.6 372.7 530.3 1,008.8 

Return on assets (%) .................................. 2002 1.34 1.02 1.16 1.39 1.38 1.20 1.35 1.34 1.57 1.43 1.53 

.............................................. 2000 1.13 1.12 1.19 1.21 1.10 1.23 0.87 1.05 1.39 1.10 1.32 

.............................................. 1998 1.22 1.18 1.27 1.41 1.14 1.14 1.16 1.25 1.43 1.26 1.33 

Net charge-offs to loans & leases (%) ........ 2002 0.96 0.26 0.31 0.70 1.20 1.47 0.67 0.75 1.21 0.39 0.81 

.............................................. 2000 0.51 0.22 0.26 0.52 0.58 0.63 0.41 0.32 0.74 0.32 0.62 

.............................................. 1998 

Noncurrent assets plus

0.55 0.19 0.27 0.86 0.54 0.76 0.41 0.36 0.67 0.36 0.57 

OREO to assets (%) ............................ 2002 0.91 0.87 0.72 0.71 1.00 1.02 0.79 1.02 0.82 0.83 0.74 

.............................................. 2000 0.65 0.69 0.57 0.61 0.67 0.70 0.63 0.62 0.57 0.66 0.58 

.............................................. 1998 0.68 0.77 0.66 0.80 0.64 0.77 0.58 0.58 0.63 0.63 0.73 

Equity capital ratio (%) ................................ 2002 9.25 11.28 10.03 9.96 8.83 8.84 9.36 8.82 10.17 9.77 10.01 

.............................................. 2000 8.37 11.17 9.53 8.59 7.90 8.25 8.24 8.03 9.27 8.59 8.73 

.............................................. 1998 8.66 11.12 9.94 9.59 7.80 7.86 9.47 8.71 9.22 9.09 9.12 

* Regions: 

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

Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

San Francisco - Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Pacific Islands, Utah, Washington, Wyoming 

ALL FDIC-INSURED INSTITUTIONS 9 SECOND QUARTER 2003 
FDIC Quarterly Banking Profile 

TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

June 30, 2003 

Percent of Loans 30-89 Days Past Due 

All Insured 

Institutions 

Asset Concentration Groups* 

International 

Banks 

Agricultural 

Banks 

Credit Card 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

All loans secured by real estate ...................................... 0.90 1.34 1.22 0.90 0.76 1.00 0.85 1.12 1.44 0.91 

Construction and development .................................... 0.86 2.42 1.32 0.16 0.79 1.04 2.30 0.83 1.87 0.57 

Commercial real estate ................................................ 0.62 0.77 1.23 0.00 0.64 0.43 0.50 0.85 1.14 0.46 

Multifamily residential real estate ................................. 0.31 0.10 0.88 0.00 0.32 0.18 2.16 0.16 0.77 0.25 

Home equity loans ....................................................... 0.42 0.53 0.61 0.71 0.40 0.21 0.27 0.40 0.50 0.74 

Other 1-4 family residential .......................................... 1.15 1.49 1.65 2.13 1.05 1.16 0.99 1.42 1.61 1.11 

Commercial and industrial loans ..................................... 0.87 0.58 1.91 1.78 1.01 0.82 0.78 1.47 1.95 0.63 

Loans to individuals ......................................................... 1.85 1.81 2.30 2.48 1.57 1.29 1.91 1.97 2.10 1.49 

Credit card loans .......................................................... 2.33 2.05 2.35 2.53 2.18 1.43 2.19 1.53 2.04 1.94 

Other loans to individuals ............................................. 1.58 1.63 2.30 1.29 1.50 1.28 1.88 2.02 2.11 1.42 

All other loans and leases (including farm) ..................... 0.49 0.42 0.98 0.01 0.77 0.56 0.61 0.69 0.95 0.22 

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

Percent of Loans Noncurrent** 

0.99 0.99 1.36 2.29 0.89 1.00 1.16 1.27 1.56 0.80 

All real estate loans ......................................................... 0.84 1.42 1.24 0.48 0.80 0.88 0.56 0.91 1.03 0.79 

Construction and development .................................... 0.92 2.90 1.63 0.02 0.78 1.22 0.85 2.39 2.00 1.25 

Commercial real estate ................................................ 1.00 1.84 1.46 0.17 0.89 1.12 1.02 1.17 1.31 1.31 

Multifamily residential real estate ................................. 0.33 0.83 1.09 0.00 0.37 0.20 0.49 0.40 0.77 0.35 

Home equity loans ....................................................... 0.24 0.14 0.28 0.24 0.25 0.13 0.13 0.15 0.26 0.47 

Other 1-4 family residential .......................................... 0.84 1.15 0.91 1.82 0.85 0.96 0.56 0.70 0.86 0.61 

Commercial and industrial loans ..................................... 2.65 4.79 2.21 1.58 1.94 1.80 1.92 2.03 1.95 2.99 

Loans to individuals ......................................................... 1.30 2.18 0.88 1.98 0.66 0.45 1.22 0.76 0.82 0.67 

Credit card loans .......................................................... 1.91 1.81 1.84 2.04 1.72 1.09 1.66 0.74 1.83 1.59 

Other loans to individuals ............................................. 0.97 2.47 0.85 0.61 0.54 0.38 1.17 0.76 0.76 0.53 

All other loans and leases (including farm) ..................... 0.90 0.94 1.53 0.01 1.10 0.46 1.14 0.83 1.14 0.64 

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

Percent of Loans Charged-off (net, YTD) 

1.24 2.36 1.42 1.82 1.06 0.88 0.92 1.02 1.10 1.24 

All real estate loans ......................................................... 0.11 0.15 0.05 0.20 0.12 0.06 0.16 0.18 0.07 0.13 

Construction and development .................................... 0.12 0.00 0.13 -0.37 0.09 0.15 0.15 0.12 0.13 0.24 

Commercial real estate ................................................ 0.11 -0.02 0.08 -0.02 0.12 0.18 0.04 0.58 0.12 0.06 

Multifamily residential real estate ................................. 0.02 0.15 0.00 0.00 0.03 0.01 0.46 0.00 -0.39 -0.02 

Home equity loans ....................................................... 0.17 0.06 0.06 0.13 0.14 0.07 0.33 -0.08 0.05 0.30 

Other 1-4 family residential .......................................... 0.10 0.05 0.07 0.64 0.15 0.05 0.13 0.04 0.07 0.13 

Commercial and industrial loans ..................................... 1.37 1.62 0.56 5.85 1.33 1.00 2.04 0.93 0.65 1.16 

Loans to individuals ......................................................... 3.00 3.92 0.58 5.94 1.50 1.38 1.82 1.38 0.93 1.89 

Credit card loans .......................................................... 5.83 4.79 3.59 6.07 5.18 3.11 8.66 5.49 4.52 8.59 

Other loans to individuals ............................................. 1.40 3.20 0.49 2.63 1.05 1.19 0.99 0.84 0.71 0.98 

All other loans and leases (including farm) ..................... 0.43 0.37 0.17 0.00 0.63 0.77 0.89 0.44 0.35 0.28 

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

Loans Outstanding (in billions) 

0.80 1.60 0.20 5.40 0.60 0.20 0.90 0.50 0.30 0.60 

All real estate loans ......................................................... $3,038.3 $117.5 $40.1 $10.6 $1,290.1 $821.1 $172.2 $12.0 $75.7 $499.0 

Construction and development .................................... 256.9 1.6 1.8 0.2 185.9 22.4 7.0 0.9 4.3 32.8 

Commercial real estate ................................................ 652.5 7.8 9.2 0.3 451.6 49.4 22.2 3.2 17.5 91.2 

Multifamily residential real estate ................................. 143.4 1.4 0.6 0.0 80.8 43.4 2.3 0.5 1.6 12.8 

Home equity loans ....................................................... 295.9 10.1 0.6 8.4 130.4 59.1 34.7 0.5 3.1 49.0 

Other 1-4 family residential .......................................... 1,612.7 71.4 13.4 1.7 420.3 645.8 105.0 6.6 44.9 303.5 

Commercial and industrial loans ..................................... 934.4 157.9 11.6 8.1 463.5 35.4 32.3 2.0 11.8 211.8 

Loans to individuals ......................................................... 764.2 146.8 6.9 165.0 187.3 47.4 94.0 2.5 16.1 98.2 

Credit card loans .......................................................... 269.8 63.6 0.2 158.4 19.9 4.7 9.3 0.3 0.9 12.5 

Other loans to individuals ............................................. 494.3 83.2 6.7 6.6 167.3 42.7 84.6 2.2 15.2 85.7 

All other loans and leases (including farm) ..................... 513.1 171.9 20.5 5.5 135.9 16.6 10.5 0.7 6.4 145.0 

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

Memo: Other Real Estate Owned (in millions) 

5,249.9 594.2 79.1 189.2 2,076.7 920.5 309.0 17.2 110.1 954.0 

All other real estate owned .............................................. 5,527.3 305.7 147.8 8.0 2,638.9 1,141.4 244.7 82.4 234.4 724.1 

Construction and development .................................... 670.0 0.0 8.7 0.0 446.5 139.7 1.8 2.0 24.4 46.9 

Commercial real estate ................................................ 1,958.1 92.4 57.7 1.1 1,170.3 124.1 22.2 76.8 93.5 320.0 

Multifamily residential real estate ................................. 135.4 6.0 2.7 0.0 84.1 5.0 0.2 0.1 5.3 32.0 

1-4 family residential .................................................... 2,556.2 129.2 41.5 6.9 881.1 872.6 213.6 12.3 100.4 298.7

 Farmland ..................................................................... 109.0 0.0 37.2 0.0 48.8 1.7 7.1 0.5 10.9 2.8 

* See page 8 for explanations.
 

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

SECOND QUARTER 2003 10 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

June 30, 2003 

Percent of Loans 30-89 Days Past Due 

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

All loans secured by real estate ............................ 0.90 1.40 0.90 0.70 0.93 0.90 0.77 1.15 0.85 1.01 0.78 

Construction and development ........................... 0.86 1.24 0.92 0.80 0.82 0.79 0.56 1.14 0.95 0.87 1.00 

Commercial real estate ...................................... 0.62 1.04 0.69 0.64 0.53 0.60 0.50 0.84 0.79 0.71 0.39 

Multifamily residential real estate ....................... 0.31 1.07 0.43 0.26 0.27 0.14 0.21 0.76 0.49 0.90 0.12 

Home equity loans .............................................. 0.42 0.63 0.46 0.36 0.42 0.41 0.45 0.49 0.59 0.43 0.24 

Other 1-4 family residential ................................ 1.15 1.81 1.19 0.84 1.18 1.11 1.04 1.55 0.92 1.31 1.00 

Commercial and industrial loans ........................... 0.87 1.83 1.35 1.19 0.71 0.70 0.59 1.13 1.39 1.18 0.91 

Loans to individuals ............................................... 1.85 2.54 2.00 1.92 1.80 1.91 1.90 1.61 2.06 1.64 1.84 

Credit card loans ................................................ 2.33 2.08 4.38 2.92 2.17 2.26 3.53 2.24 2.35 0.99 2.09 

Other loans to individuals ................................... 1.58 2.55 1.71 1.40 1.56 1.65 1.50 1.48 1.63 1.76 1.58 

All other loans and leases (including farm) ........... 0.49 1.00 0.80 0.57 0.44 0.45 0.23 0.64 0.86 0.82 0.44 

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

Percent of Loans Noncurrent** 

0.99 1.55 1.05 0.94 0.97 1.00 0.83 1.14 1.17 1.11 0.91 

All real estate loans ............................................... 0.84 1.10 0.83 0.79 0.84 0.85 0.62 1.19 0.70 1.00 0.71 

Construction and development ........................... 0.92 1.26 0.99 0.89 0.88 1.01 0.64 1.24 0.83 0.79 1.09 

Commercial real estate ...................................... 1.00 1.17 0.93 1.01 1.04 0.88 0.86 1.35 0.96 1.13 0.83 

Multifamily residential real estate ....................... 0.33 0.87 0.40 0.43 0.26 0.20 0.30 0.65 0.38 0.99 0.18 

Home equity loans .............................................. 0.24 0.35 0.22 0.23 0.25 0.20 0.20 0.35 0.32 0.31 0.15 

Other 1-4 family residential ................................ 0.84 1.00 0.79 0.74 0.87 0.83 0.60 1.37 0.51 0.89 0.76 

Commercial and industrial loans ........................... 2.65 1.86 1.46 1.80 3.00 3.67 2.45 2.35 1.42 1.50 1.84 

Loans to individuals ............................................... 1.30 0.97 0.89 0.95 1.42 1.90 0.89 0.68 1.45 0.65 1.03 

Credit card loans ................................................ 1.91 1.25 3.07 1.84 1.89 2.06 2.22 1.56 1.90 0.78 1.68 

Other loans to individuals ................................... 0.97 0.97 0.62 0.49 1.12 1.79 0.57 0.50 0.78 0.63 0.37 

All other loans and leases (including farm) ........... 0.90 1.47 1.34 0.65 0.88 1.03 0.71 0.70 1.24 1.37 0.76 

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

Percent of Loans Charged-off (net, YTD) 

1.24 1.24 0.95 0.96 1.36 1.67 0.99 1.32 1.01 1.06 0.87 

All real estate loans ............................................... 0.11 0.06 0.07 0.09 0.13 0.07 0.08 0.25 0.06 0.14 0.05 

Construction and development ........................... 0.12 0.09 0.09 0.13 0.13 0.03 0.09 0.18 0.10 0.19 0.08 

Commercial real estate ...................................... 0.11 0.07 0.10 0.12 0.13 0.09 0.06 0.24 0.07 0.08 0.09 

Multifamily residential real estate ....................... 0.02 0.08 0.01 0.03 0.02 0.00 0.01 0.03 0.03 0.13 0.02 

Home equity loans .............................................. 0.17 0.02 0.04 0.12 0.20 0.05 0.16 0.34 0.14 0.19 0.07 

Other 1-4 family residential ................................ 0.10 0.06 0.06 0.08 0.11 0.04 0.08 0.27 0.06 0.15 0.04 

Commercial and industrial loans ........................... 1.37 0.57 0.64 1.00 1.56 1.65 1.27 1.28 0.72 0.78 1.51 

Loans to individuals ............................................... 3.00 0.84 1.52 2.68 3.27 3.63 2.25 1.69 3.96 1.10 3.83 

Credit card loans ................................................ 5.83 4.91 7.65 6.53 5.69 5.78 8.10 4.73 5.89 2.58 5.74 

Other loans to individuals ................................... 1.40 0.71 0.76 1.02 1.62 1.93 1.06 1.14 0.56 0.84 1.77 

All other loans and leases (including farm) ........... 0.43 0.27 0.32 0.35 0.45 0.46 0.30 0.52 0.34 0.41 0.37 

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

Loans Outstanding (in billions) 

0.80 0.20 0.30 0.60 1.00 1.20 0.60 0.70 1.00 0.40 0.70 

All real estate loans ............................................... $3,038.3 $89.9 $542.9 $529.2 $1,876.3 $671.9 $682.2 $609.8 $162.1 $239.8 $672.6 

Construction and development ........................... 256.9 8.3 64.7 58.9 125.0 30.1 76.5 60.1 15.3 36.6 38.4 

Commercial real estate ...................................... 652.5 24.8 185.9 153.8 288.0 129.4 159.3 144.9 42.6 70.7 105.6 

Multifamily residential real estate ....................... 143.4 2.1 23.9 33.9 83.4 36.8 18.2 27.0 5.2 6.4 49.7 

Home equity loans .............................................. 295.9 2.9 29.5 35.7 227.8 63.5 72.8 84.1 8.6 15.4 51.4 

Other 1-4 family residential ................................ 1,612.7 41.6 220.8 241.3 1,109.1 380.7 346.7 283.5 77.9 100.6 423.3 

Commercial and industrial loans ........................... 934.4 21.6 104.2 117.9 690.7 306.2 199.6 224.7 45.7 59.4 98.8 

Loans to individuals ............................................... 764.2 15.0 60.8 111.7 576.6 296.3 135.5 120.4 59.3 44.6 108.1 

Credit card loans ................................................ 269.8 0.4 6.6 38.3 224.5 125.7 26.5 20.4 35.9 6.6 54.7 

Other loans to individuals ................................... 494.3 14.6 54.3 73.4 352.1 170.6 109.0 100.0 23.4 38.1 53.3 

All other loans and leases (including farm) ........... 513.1 14.8 29.9 43.8 424.5 214.9 94.9 122.0 29.9 18.2 33.3 

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

Memo: Other Real Estate Owned (in millions) 

5,249.9 141.4 737.9 802.5 3,568.1 1,489.3 1,112.1 1,076.8 296.9 362.1 912.8 

All other real estate owned .................................... 5,527.3 375.7 1,542.5 878.8 2,730.3 780.3 1,245.3 1,354.6 446.1 865.6 835.5 

Construction and development ........................... 670.0 48.6 271.9 147.9 201.7 41.5 150.7 124.3 86.3 165.9 101.2 

Commercial real estate ...................................... 1,958.1 146.7 710.1 393.5 707.8 288.7 523.5 341.4 192.8 321.4 290.3 

Multifamily residential real estate ....................... 135.4 11.8 39.5 31.4 52.8 9.5 39.4 26.4 8.0 38.7 13.5 

1-4 family residential .......................................... 2,556.2 141.4 473.4 299.4 1,642.0 337.4 520.8 850.7 136.8 309.7 400.7 

Farmland ............................................................ 109.0 27.6 57.9 6.9 16.6 2.6 11.5 12.2 23.6 30.8 28.3 

* See page 9 for explanations.
 

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

ALL FDIC-INSURED INSTITUTIONS 11 SECOND QUARTER 2003 
 

FDIC Quarterly Banking Profile 

Insurance Fund Indicators 

� BIF Reserve Ratio Climbs To 1.29 Percent 

� SAIF Reserve Ratio Rises To 1.38 Percent 

� One BIF-Member Institution Fails During Second Quarter 

Total assets of the 9,267 FDIC-insured commercial 

banks and savings institutions increased rapidly during 

the quarter. From March 31 to June 30, total assets 

increased by 3.7 percent, the fastest rate of growth since 

the fourth quarter of 1986. Over the last four quarters 

insured institution asset growth has averaged 2.7 percent. During the second quarter, total deposits of 

insured institutions increased by 2.9 percent ($166 billion). Deposits held in domestic offices grew by 2.8 

percent ($141 billion), while foreign office deposits 

increased by 3.9 percent ($25 billion). All of the quarterly increase in domestic deposits came from accounts 

greater than $100 thousand. Deposits insured by the 

FDIC rose by 0.5 percent ($17 billion) during the second quarter to $3.4 trillion. On June 30, insured institutions funded 38 percent of their assets with insured 

deposits, down from the peak reached on June 30, 1992 

when insured deposits funded 59 percent of the balance 

sheet. During the second three months of 2003, the 

combined balances of the Bank Insurance Fund (BIF) 

and the Savings Association Insurance Fund (SAIF) 

increased by 1.3 percent, to $44.9 billion (unaudited). 

The combined BIF and SAIF reserve ratio (fund balance as a percent of insured deposits) for all insured 

institutions increased one basis point to 1.31 percent. 

Deposits insured by the BIF increased by 0.34 percent 

($8.7 billion), after increasing in the first quarter by 

0.13 percent. The Bank Insurance Fund grew by 1.3 

percent ($418 million) during the second three months 

of 2003, ending the quarter with a balance of $32.8 billion. Because the growth of the BIF more than outweighed the growth of BIF-insured deposits, the BIF 

reserve ratio rose from 1.28 percent on March 31, 2003 

to 1.29 percent on June 30, 2003. More than two-fifths 

of the increase to the BIF was attributable to lower estimated losses for actual and future bank failures ($133 

million) and an increase in unrealized gains on securities available for sale ($38 million). From June 30, 

2002 to June 30, 2003, higher unrealized gains on securities added $502 million to the BIF. 

Deposits insured by the SAIF grew 0.9 percent in the 

second quarter of 2003, roughly the same rate as in the 

first quarter. The Savings Association Insurance Fund 

grew by $177 million during the second quarter, pushing the fund above $12 billion for the first time. The 

reserve ratio of the Savings Association Insurance Fund 

(SAIF) at the end of the second quarter was 1.38 percent, one basis point higher than three months earlier. 

Only one FDIC insured institution failed during the 

second quarter of 2003, a small BIF-member commercial bank with assets of $35.5 million. The loss to the 

BIF is estimated to be $9.5 million. There were no failures of SAIF-member institutions during the second 

quarter. For the first six months of 2003, two BIF-member institutions failed with total assets of $1.1 billion 

and an estimated cost of $110 million. During this 

time no SAIF institutions failed. 

Changes in Insurance Fund Balances 

(dollar figures in millions) Bank Insurance Fund 

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

2003 2003 2002 2002 2002 2002 

2nd Qtr. 

2003 

Savings Association Insurance Fund 

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

2003 2002 2002 2002 2002 

Beginning Fund Balance $32,382 $32,050 $31,383 $31,187 $30,697 $30,439 

Unrealized Gain (Loss) on 

Available-for-Sale Securities 38 103 –72 433 183 22 

Provision for Insurance Losses –133 -6 –497 447 –19 –18 

All Other Income, Net of Expenses 247 223 242 210 288 218 

Total Fund Balance Change 418 332 667 196 490 258 

Ending Fund Balance $32,800 $32,382 $32,050 $31,383 $31,187 $30,697 

$11,906 

13 

–45 

119 

177 

$12,083 

$11,747 $11,586 $11,323 $11,049 $10,935 

33 –26 147 61 10 

–21 –70 –4 –79 –3 

105 117 112 134 101 

159 161 263 274 114 

$11,906 $11,747 $11,586 $11,323 $11,049 

SECOND QUARTER 2003 12 ALL FDIC-INSURED INSTITUTIONS 
 

 

 

 

FDIC Quarterly Banking Profile 

TABLE I-B. Selected Insurance Fund Indicators* 

(dollar figures in millions) Preliminary 

2nd Quarter 1st Quarter 2nd Quarter %Change 

2003 2003 2002 02:2-03:2 

Bank Insurance Fund 

Reserve ratio (%)..................................................................... 1.29 1.28 1.25 3.2 

Fund balance........................................................................ $32,800 $32,382 $31,187 5.2 

Estimated insured deposits...................................................... 2,539,994 2,531,307 2,490,954 2.0 

SAIF-member Oakars............................................................ 100,082 97,380 87,667 14.2 

BIF-members........................................................................ 2,439,912 2,433,927 2,403,287 1.5 

Assessment base..................................................................... 4,081,153 3,959,752 3,633,064 12.3 

SAIF-member Oakars............................................................ 103,358 100,387 89,149 15.9 

BIF-members........................................................................ 3,977,795 3,859,366 3,543,915 12.2 

Savings Association Insurance Fund 

Reserve ratio (%)..................................................................... 1.38 1.37 1.38 0.0 

Fund balance........................................................................ $12,083 $11,906 $11,323 6.7 

Estimated insured deposits...................................................... 875,857 867,908 818,806 7.0 

BIF-member Oakars............................................................ 398,071 385,173 348,055 14.4 

SAIF-member Sassers......................................................... 92,550 92,613 92,349 0.2 

Other SAIF members............................................................ 385,237 390,122 378,403 1.8 

Assessment base..................................................................... 1,042,243 1,015,246 924,028 12.8 

BIF-member Oakars............................................................... 403,653 389,712 350,707 15.1 

SAIF-member Sassers......................................................... 115,187 113,516 111,103 3.7 

Other SAIF members............................................................ 523,402 512,018 462,219 13.2 

Insurance Fund Reserve Ratios* Fund Balances and Insured Deposits* 

Percent of Insured Deposits ($Millions) 

12/98 12/99 12/00 12/01 3/02 6/02 9/02 12/02 3/03 6/03 

1.39 

1.37 

1.35 

1.26 

1.23 

1.25 1.25 

1.27 1.28 1.29 

1.37 

1.43 1.43 

1.36 1.36 

1.38 1.38 1.37 1.37 1.38 

BIF SAIF 

BIF BIF-Insured SAIF SAIF-Insured 

Balance Deposits Balance Deposits 

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

12/99 29,414 2,151,454 10,281 717,591 

12/00 30,975 2,299,932 10,759 755,156 

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

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

Target 

Ratio 6/02 31,187 2,490,954 11,323 818,806 1.25 

9/02 31,383 2,508,918 11,586 837,591 

12/02 32,050 2,527,927 11,747 859,694 

3/03 32,382 2,531,307 11,906 867,908 

6/03 32,800 2,539,994 12,083 875,857 

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

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

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

include U.S. branches of foreign banks. 

TABLE II-B. Closed/Assisted Institutions 

(dollar figures in millions) 

BIF Members 

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

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

SAIF Members 

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

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

2003** 2002** 2002 2001 2000 1999 1998 

2 

$1,088 

7 

$2,403 

10 

$2,508 

3 

$54 

6 

$378 

7 

$1,490 

3 

$371 

0 

$0 

1 

$50 

1 

$50 

1 

$2,200 

1 

$30 

1 

$71 

0 

$0 

** Through June 30. 

ALL FDIC-INSURED INSTITUTIONS 13 SECOND QUARTER 2003 
 

 

 

 

FDIC Quarterly Banking Profile 

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

(dollar figures in millions) 2003** 2002** 2002 2001 2000 1999 1998 

BIF Members 

Number of institutions reporting................................................ 8,065 8,210 8,125 8,326 8,571 8,834 9,031 

BIF-member Oakars............................................................ 807 786 801 766 743 744 745 

Other BIF-members............................................................... 7,258 7,424 7,324 7,560 7,828 8,090 8,286 

Total assets........................................................................... $ 7,768,677 $6,976,319 $7,335,998 $6,857,295 $6,509,475 $5,980,168 $5,702,872 

Total deposits........................................................................ 5,103,744 4,587,304 4,854,909 4,567,608 4,337,665 3,987,340 3,843,779 

Net income........................................................................... 52,192 46,632 92,694 76,537 73,442 73,932 64,451 

Return on assets (%)............................................................... 1.39 1.36 1.32 1.14 1.18 1.29 1.18 

Return on equity (%)............................................................... 15.16 14.76 14.35 12.91 13.86 15.10 13.82 

Noncurrent assets plus OREO to assets (%)................................. 0.82 0.93 0.91 0.90 0.72 0.62 0.64 

Number of problem institutions................................................... 111 111 116 90 74 66 68 

Assets of problem institutions................................................... $30,761 $32,026 $32,176 $31,881 $10,787 $4,450 $5,326 

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

Assets of failed/assisted institutions............................................. $1,088 $2,403 $2,508 $54 $378 $1,490 $371 

SAIF Members 

Number of institutions reporting................................................ 1,202 1,256 1,229 1,287 1,333 1,387 1,432 

SAIF-member Oakars............................................................ 136 134 133 130 123 123 116 

Other SAIF-members............................................................ 1,066 1,122 1,096 1,157 1,210 1,264 1,316 

Total assets........................................................................... $ 1,154,192 $1,062,721 $1,099,966 $1,011,737 $952,161 $903,532 $828,177 

Total deposits........................................................................ 740,757 666,886 713,599 621,825 577,100 550,703 542,481 

Net income........................................................................... 7,341 6,320 12,463 10,623 8,070 8,450 7,568 

Return on assets (%)............................................................... 1.30 1.20 1.17 1.11 0.89 0.99 0.98 

Return on equity (%)............................................................... 14.22 13.84 12.79 13.46 11.12 11.97 11.29 

Noncurrent assets plus OREO to assets (%)................................. 0.72 0.74 0.79 0.75 0.65 0.64 0.80 

Number of problem institutions................................................... 14 25 20 24 20 13 16 

Assets of problem institutions................................................... $1,059 $7,673 $6,751 $7,923 $13,053 $5,524 $5,992 

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

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

* Excludes insured branches of foreign banks (IBAs). 

** Through June 30, ratios annualized where appropriate. 

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

(dollar figures in millions) 

Commercial Banks and Savings Institutions 

June 30, 2003 

Number of 

Institutions 

Total 

Assets 

Domestic 

Deposits* 

Estimated Insured Deposits 

BIF SAIF Total

FDIC-Insured Commercial Banks............................................. 7,833 7,485,044 4,247,908 2,285,026 412,088 2,697,114 

BIF-member..................................................................... 7,721 7,316,204 4,136,444 2,251,412 357,421 2,608,833 

SAIF-member.................................................................. 112 168,840 111,464 33,614 54,667 88,281 

FDIC-Supervised............................................................... 4,833 1,346,698 992,386 631,473 86,212 717,685 

OCC-Supervised............................................................... 2,048 4,160,761 2,293,878 1,203,792 235,161 1,438,953 

Federal Reserve-Supervised................................................ 952 1,977,585 961,644 449,761 90,715 540,476 

FDIC-Insured Savings Institutions............................................. 1,434 1,437,825 918,531 253,848 463,770 717,618 

OTS-Supervised Savings Institutions....................................... 946 1,072,251 661,383 118,718 397,387 516,105 

BIF-member..................................................................... 42 150,974 78,393 55,235 12,150 67,385 

SAIF-member.................................................................. 904 921,277 582,990 63,483 385,237 448,720 

FDIC-Supervised State Savings Banks.................................... 488 365,574 257,148 135,130 66,383 201,513 

BIF-member..................................................................... 302 301,499 211,185 132,145 28,500 160,645 

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

Total Commercial Banks and 

186 64,075 45,963 2,985 37,882 40,868 

Savings Institutions................................................... 9,267 8,922,869 5,166,438 2,538,874 875,857 3,414,731 

BIF-member........................................................................ 8,065 7,768,677 4,426,022 2,438,792 398,071 2,836,863 

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

Other FDIC-Insured Institutions 

1,202 1,154,192 740,416 100,082 477,787 577,869 

U.S. Branches of Foreign Banks............................................. 15 10,728 5,233 1,120 0 1,120 

Total FDIC-Insured Institutions....................................... 9,282 8,933,598 5,171,671 2,539,994 875,857 3,415,851 

* Excludes $678 billion in foreign office deposits, which are uninsured. 

SECOND QUARTER 2003 14 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE V-B. Assessment Base Distribution and Rate Schedules 

BIF Assessment Base Distribution
 

Assessable Deposits in Billions as of June 30, 2003
 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2003
 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

7,413 

$3,927 

82 

$10 

0 

$0 

91.7 

96.2 

1.0 

0.3 

0.0 

0.0 

472 5.8 

$119 2.9 

9 0.1 

$1 0.0 

2 0.0 

$0 0.0 

87 

$20 

14 

$3 

1 

$0 

1.1 

0.5 

0.2 

0.1 

0.0 

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. 

SAIF Assessment Base Distribution
 

Assessable Deposits in Billions as of June 30, 2003
 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2003
 

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

1,099 

$1,005 

4 

$1 

0 

$0 

91.4 

96.4 

0.3 

0.1 

0.0 

0.0 

82 6.8 

$35 3.4 

1 0.1 

$0 0.0 

0 0.0 

$0 0.0 

13 

$1 

3 

$0 

0 

$0 

1.1 

0.1 

0.2 

0.0 

0.0 

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
 

Second Semiannual 2003 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. 

ALL FDIC-INSURED INSTITUTIONS 15 SECOND QUARTER 2003 
FDIC Quarterly Banking Profile 

Number of FDIC-Insured “Problem” Institutions, 1995–2003 

Number of Institutions 

200 

150 

100 

50 

0 

193 

117 

92 84 79 

94 

114 

136 129 125 

12/95 12/96 12/97 12/98 12/99 12/00 12/01 12/02 3/03 6/03 

SAIF Members 

BIF Members 

SAIF Members 42 31 19 16 13 20 24 20 18 14
 

BIF Members 151 86 73 68 66 74 90 116 111 111
 

Assets of FDIC-Insured “Problem” Institutions, 1995–2003 

$ Billions 

100 

50 

0 

SAIF Members 

BIF Members 

$31 

$13 

$7 $11 $10 

$24 

$40 $39 $35 $32 

12/95 12/96 12/97 12/98 12/99 12/00 12/01 12/02 3/03 6/03 

SAIF Members 11 6 2 6 6 13 8 7 3 1
 

BIF Members 20 7 5 5 4 11 32 32 32 31
 

SECOND QUARTER 2003 16 ALL FDIC-INSURED INSTITUTIONS 
 

FDIC Quarterly Banking Profile 

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. 

Tables I-A through V-A. 

The information presented in Tables I-A through V-A of the 

FDIC Quarterly Banking Profile is aggregated for all FDICinsured Institutions, both commercial banks and savings institutions. Some tables are arrayed by groups of FDIC-insured 

institutions based on predominant types of asset concentration, 

while other tables aggregate institutions by asset size and geographic region. Quarterly and full-year data are provided for 

selected indicators, including aggregate condition and income 

data, performance ratios, condition ratios and structural 

changes, as well as past due, noncurrent and charge-off information for loans outstanding and other assets. 

Tables I-B through V-B. 

A separate set of tables(Tables I-B through V-B) provides quarterly and annual data related to the bank (BIF) and savings 

association (SAIF) insurance funds, closed/assisted institutions, 

and assessments. 

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 BIFmember 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 nondeposit 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. 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 doublecounting. 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 (beginning-ofperiod 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.
 

ACCOUNTING CHANGES
 

FASB Interpretation No. 45 — In November 2002, the FASB
 

issued Interpretation No. 45, Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of
 

Indebtedness of Others. This interpretation clarifies that a guarantor is required to recognize, at the inception of a guarantee
 

(financial standby letters of credit, performance standby letters
 

of credit), a liability for the fair value of the obligation undertaken in issuing the guarantee. Banks apply the initial recognition and measurement provisions of Interpretation No. 45 on a
 

prospective basis to guarantees issued or modified after December 31, 2002, irrespective of the bank’s fiscal year end. A bank’s
 

previous accounting for guarantees issued prior to January 1,
 

2003, is not revised.
 

FASB Interpretation No. 46 — The FASB issued Interpretation
 

No. 46, Consolidation of Variable Interest Entities, in January
 

2003. Most small banks are unlikely to have any “variable
 

interests” in variable interest entities. Banks with variable
 

interests in variable interest entities created after January 31,
 

2003, must apply the provisions of Interpretation No. 46 to
 

those entities immediately. A bank that is a public company, or
 

a subsidiary of a public company, and has a variable interest in
 

a variable interest entity created before February 1, 2003, must
 

apply the provisions of Interpretation No. 46 to that entity no
 

later than the beginning of the first interim or annual reporting period beginning after June 15, 2003. A bank that is neither a public company nor a subsidiary of a public company,
 

but has a variable interest in a variable interest entity created
 

before February 15, 2003, must apply the provisions of Interpretation No. 46 to that entity no later than the end of the
 

first annual reporting period beginning after June 15, 2003.
 

Goodwill and intangible assets — FAS 141 terminates the use of
 

pooling-of-interest accounting for business combinations after
 

2001 and requires purchase accounting. Under FAS 142 amortization of goodwill is eliminated. Only intangible assets other
 

than goodwill are amortized each quarter. In addition companies are required to test for impairment of both goodwill and
 

other intangibles once each fiscal year. The year 2002, the first
 

fiscal year affected by this accounting change, has been designated a transitional year and the amount of initial impairments
 

are to be recorded as extraordinary losses on a “net of tax” basis
 

(and not as noninterest expense). Subsequent annual review
 

of intangibles and goodwill impairment may require additional
 

noninterest expense recognition. FASB Statement No. 147
 

clarifies that acquisitions of financial institutions (except transactions between two or more mutual enterprises), including
 

branch acquisitions that meet the definition of a business combination, should be accounted for by the purchase method
 

under FASB Statement No. 141. This accounting standard
 

includes transition provisions that apply to unidentifiable
 

intangible assets previously accounted for in accordance with
 

FASB Statement No. 72. If the transaction (such as a branch
 

acquisition) in which an unidentifiable intangible asset arose
 

does not meet the definition of a business combination, this
 

intangible asset is not be reported as “Goodwill” on the Call
 

Report balance sheet. Rather, this unidentifiable intangible
 

asset is reported as “Other intangible assets,” and must continue to be amortized and the amortization expense should be
 

reported in the Call Report income statement.
 

FASB Statement No. 133 Accounting for Derivative Instruments and
 Hedging Activities — establishes new accounting and reporting
 

standards. Derivatives were previously off-balance sheet items,
 

but beginning in 2001 all banks must recognize derivatives as
 

ALL FDIC-INSURED INSTITUTIONS 17 SECOND QUARTER 2003 
 

 

 

FDIC Quarterly Banking Profile 

either assets or liabilities on the balance sheet, measured at fair 

value. A derivative may be specifically designated as a “fair 

value hedge,” a “cash flow hedge,” or a hedge of a foreign currency exposure. The accounting for changes in the value of a derivative (gains and losses) depends on the intended use of the 

derivative, its resulting designation, and the effectiveness of the 

hedge. Derivatives held for purposes other than trading are 

reported as “other assets” (positive fair values) or “other liabilities” (negative fair values). For a fair value hedge, the gain or 

loss is recognized in earnings and “effectively” offsets loss or gain 

on the hedged item attributable to the risk being hedged. Any 

ineffectiveness of the hedge could result in a net gain or loss on 

the income statement. Accumulated net gains (losses) on cash 

flow hedges are recorded on the balance sheet as “accumulated 

other comprehensive income” and the periodic change in the 

accumulated net gains (losses) for cash flow hedges is reflected 

directly in equity as the value of the derivative changes. 

Initial transition adjustments upon adoption of FAS 133 are 

reported as adjustments to net income in the income statement 

as extraordinary items. Upon implementing FAS 133, a bank 

may transfer any debt security categorized as held-to-maturity 

into the available-for-sale category or the trading category. 

Unrealized gains (losses) on transferred held-to-maturity debt 

securities on the date of initial application must be reflected as 

an adjustment to net income if transferred to the trading category or an adjustment to equity if transferred to the available-forsale category. 

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 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, fair 

market value of derivatives, and other assets. 

All other liabilities — bank’s liability on acceptances, limited-life 

preferred stock, allowance for estimated off-balance sheet credit 

losses, fair market value of derivatives, and other liabilities. 

Assessment base distribution — assessable deposits consist of BIF 

and SAIF deposits in banks’ domestic offices with certain adjustments. Each institution’s assessment depends on its assigned riskbased capital category and supervisory risk subgroup: 

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 three lowest capital rating categories into a 

single “undercapitalized” group. Supervisory risk subgroup 

assignments are based on supervisory ratings. Generally, 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. 

Assets securitized and sold — total outstanding principal balance 

of assets sold and securitized with servicing retained or other seller-provided credit enhancements. 

BIF-insured deposits (estimated) — the portion of estimated 

insured deposits that is insured by the BIF. For SAIF-member 

“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. 

Derivatives (notional amount) — 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. 

Domestic deposits to total assets — total domestic office deposits as 

a percent of total assets on a consolidated basis.
 

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 — in general, insured deposits are total
 

domestic deposits minus estimated uninsured deposits. While
 

the uninsured estimate is calculated as the sum of the excess
 

amounts in accounts over $100,000, beginning June 30, 2000 the
 

SECOND QUARTER 2003 18 ALL FDIC-INSURED INSTITUTIONS 
 

FDIC Quarterly Banking Profile 

amount of estimated uninsured deposits was adjusted to consider 

a financial institution’s better estimate. Since March 31, 2002, 

all institutions provide a reasonable estimate of uninsured 

deposits from their systems and records. 

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 reported 

by Call Report filers and 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 loans to total assets — loans and lease financing receivables,
 

net of unearned income, allowance and reserves, as a percent of
 

total assets on a consolidated basis.
 

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. 

Number of institutions reporting — the number of institutions that 

actually filed a financial report. 

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 SAIF-member institutions for which the 

FDIC is the primary federal regulator, FDIC composite ratings 

are used. For all SAIF-member institutions whose primary federal regulator is the OTS, the OTS composite rating is used. 

Reserves for losses — the allowance for loan and lease losses on a 

consolidated basis. Between March 31, 2001 and March 31, 

2003 reserves for losses did not include the allocated transfer risk 

reserve, which was netted from loans and leases. 

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. 

Retained earnings — net income less cash dividends on common 

and preferred stock for the reporting period.
 

Return on assets — net income (including gains or losses on securities and extraordinary items) as a percentage of average total
 

assets. The basic yardstick of bank profitability.
 

Return on equity — net income (including gains or losses on securities and extraordinary items) as a percentage of average total
 

equity capital.
 

Risk-weighted assets — assets adjusted for risk-based capital definitions which include on-balance-sheet as well as off-balancesheet items multiplied by risk-weights that range from zero to
 

100 percent. A conversion factor is used to assign a balance
 

sheet equivalent amount for selected off-balance-sheet accounts.
 

SAIF-insured deposits (estimated) — the portion of estimated
 

insured deposits that is insured by the SAIF. For BIF-member
 

“Oakar” institutions, it represents the adjusted attributable
 

amount acquired from SAIF members.
 

Securities — excludes securities held in trading accounts. Banks’
 

securities portfolios consist of securities designated as “held-tomaturity”, which are reported at amortized cost (book value),
 

and securities designated as “available-for-sale”, 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.
 

Trust assets — market value, or other reasonably available value
 

of fiduciary and related assets, to include marketable securities,
 

and other financial and physical assets. Common physical
 

assets held in fiduciary accounts include real estate, equipment, collectibles, and household goods. Such fiduciary assets
 

are not included in the assets of the financial institution.
 

Unearned income & contra accounts — unearned income for Call 

Report filers only. 

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. 

ALL FDIC-INSURED INSTITUTIONS 19 SECOND QUARTER 2003 
The FDIC Quarterly Banking Profile is published quarterly by the Division of Insurance and Research of the 

Federal Deposit Insurance Corporation. Single copy subscriptions of the FDIC Quarterly Banking Profile can be 

obtained through the FDIC Public Information Center, 801 17th Street, NW, Washington, DC 20434; Telephone 

(202) 416-6940 or (877) 275-3342; or Email: publicinfo@fdic.gov. 

The FDIC Quarterly Banking Profile is available on-line by visiting the FDIC’s website 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. 

Chairman Donald E. Powell 

Director, Division of Insurance Arthur J. Murton 

and Research 

Media Inquiries (202) 898-6993 

Authors Don Inscoe 

Associate Director, Statistics Branch 

(202) 898-3940 

Kevin Brown 

(202) 898-6817 

Ross Waldrop 

(202) 898-3951