Second Quarter 1996 

FDIC 

Dlvltlon ot Rcse:a,e:h 

& Stet11tlcs 

Oon tnscoe 

Asaoclate Director. 

Stelletl<:1 Branch 

(202) 898-3940 

Tim Cdtchfle:fd 

(202) 898-8557 

Jim Mcfedyen 

(202) 898-1027 

Rou Waldrop 

(202) 898-3951 

The FDIC 

uarte r I Y-______ Rl_

ckl _He

_

lfe...;.

r,

_

Ch

_

al

_

rma _n 

anking Rofile 

COMMERCIAL BANKING PERFORMANCE - SECOND QUARTER 1996 

• Banks Narrowly Miss New Quarterly Earnings Record

• Net Income Of $13.78 Billion Is Second-Highest Ever

• Profits Propelled By Strong Growth In Noninterest Revenues

• Net Interest Margins Register Slight Improvement

Insured commercial banks earned $13.78 bill ion 

in the second quarter of 1996. This is the second-highest quarterly total ever reported by the 

industry, only $45 million less than the $13 .83

billion banks earned in the third quarter of 1995.

A record level of noninterest income and lower 

noninterest expense outweighed rising loan-loss 

expensos as industry earnings rose by $1.8 

billion over the levels ol the previous and yearearlier quartors. The average return on assets 

(ROA) rose to 1.27 percent, the third-highest 

level recorded in the 14 years lhat the industry 

has reported quarterly earnings. Although the 

greatest earnings Improvements were al the 

largest banks, banks in all asset-size groups 

reported higher ROAs than in the previous quarter and a year earlier. More than 95 percent of 

all banks were profitable in the second quarter, 

and 70 percent reported ROAs above one percent. For the first six months oft 996, commercial 

banks earned $25.5 billion, an increase ol 1 0.3 

t Biltoni: 

1S 

,, 

' 

o I 

Quarterly Net Income, 1992. 1996 

i I; 

i. 

1 2 S412 J 4 1 2 3 4 1 234 1 2 

19Y2 1913 1994 1'$9� f9�S 

percent ($2.4 billion) from their profits in the first 

half of 1995. 

The strongest contribution to tile industry's earn· 

ings improvement in the second quarter came 

from noninterest income, which totaled $24.1 

billion - an increase of 9.0 percent from the 

previous quarter, and 19.8 percent more than 

banks earned a year ago. Higher fee Income and 

merger-related gains on sales of assets helped 

lilt total noninterest revenues. In contrast, noninterest expenses declined by $1 .3 billion from the 

first quarter of 1996 (when expenses were in· 

Hated by merger-related restructuring charges), 

and were up by only S 1.8 billion (4.8 percent) 

from a year earlier. Provisions for Joan losses, at 

$4.2 billion, were up by 17.1 percent from the first 

quarter, and were 45 percent higher than a year 

ago. Net interest income was up $509 million 

from the first quarter, and was 5.3 percent higher 

than in the second quarter of 1995. 

Quarterly Net Interest Margins, 1992 - 1996 

I 

)\IHII < $100 MIiiion 

;... •• ... .• I 

;••" • .... ,{_.. • •• I • •• 

. . '. 

.

. . ......·

Autll > 'joo Million 

! (l.71Wo 

· ........... : 

"°)' ......... 

4.26% 

1 234 1 2 1 4 1 2 :i 4 1 2341 2 

19$2 1993 1�4 1995 1998 

Req<Jes/s for copios of and subscriotions to the FDIC Quar1erly Banking Profile should be made through th• FD/C's Public 

Information Center, 801 17/h Stre'et, NW, Washinqtun. DC 20434: telephone (202) 418-6940. 

Internet address: World Wide Web. www.fd;c.gov. or Gopher, gopher.fdic.gov. 
The industry's net interest margin increased for the 

second t me in the past seven quarters, rising slightly

to 4.29 percent. In the previous quarter, margins averaged 4.26 percent, while a year ago, the average was 

4.31 percent. Both average assot yields and average 

funding costs declined during the quarter. The average 

yield on banks' interest-earning assets fell by seven 

basis points, to 6 .20 percent from 6.27 percent in the 

first quarter. The average cost of funding interest-earning assets fell by 11 basis points, from 4.02 percent to 

3.91 percent. Total interest income was slightly tower 

than in the previous quarter, but was up by 2.1 percent 

from a year ago. Interest expense was lower than in 

the previous and year-earlier quarters. Improvement 

in net interest margins was greatest at the smallest and 

largest banks, while medium-sized institutions -

ban ks with $100 million to $1 O billion in assets -

showed either nominal improvement or some slippage 

in average marg

i

ns. 

%of loans 

3.0 

··,

2.0 

Quarterly Net Loan Charge-Off Rates 

1992 -1996 

' Loans to Individuals 

, 

C&I '. .. " 

. . . . .. "' , 

, 

- ............ ,

1.0 

, .... 

Real Estate 

1992 1993 1994 1995 1996 

An increase in credit-quality problems was evidenced 

by a 36.3-percent ($1-bllllon) Increase in net loan 

charge-offs compared to a year ago. The $3.6 billion 

that ban ks charged off In the second quarter was the 

second-highest quarterly total in the past ten quarters, 

after the $4.0 billion registered in the fourth quarter of 

1995. Much of the rise In charge-off activity occurred 

at banks with assets greater than $1 billion. The heightened charge-off actvity helped reduce banks' noncurrent loans by $832 million, with most of the 

improvement occurring at larger banks. Banks replenished their loan-loss reserves by setting aside $4.2 

billion in loan-loss provisions. A $622-mill on increase

in the industry's aggregate reserves (reflecting the 

excess of provisions over net charge-offs, plus other 

FDIC-Insured Commercial Banks 2 

Coverage Ratio• and Reserve Levels, 1991 • 1996 

$Billion• 

200 

Coverage Rario (%) 

200 

160 

120 

ao ............ Loan R�erves ($)

-.... .....

..

... 

160 

120 

BO 

----------------- ..

......

.

..

.

... 40 

/ .................................. . 

40 

Noncurr&nt Loan•($) 

0 0 

1234 12341294 1 234 1234 12 

1991 1992 1993 1994 1995 1996 

'loan-loss: A.MaNe&: to NonGI.ATen1 t.oane and Leases 

adjustments) combined with the decline in noncurrent 

loans, raised the industry's "coverage ratio" to a record 

$1.77 in reserves tor every $1.00 ol noncurrent loans. 

Net charge·offs on credit-card loans accounted for 

almost two-thirds (61 percent) of all net charge-offs in 

the second quarter. The annualized net charge-off rate 

on banks' credit-card loans was 4.48 percent in the 

second quarter, its highest level since the fourth quarter of 1992. Net charge-offs on other loans to individuals also remained high by recent standards. The 

annualized net charge-off rate on these loans in the 

second quarter was 0.80 percent. Net charge-offs on 

commercial and industrial loans were higher than in 

the previous and year-earlier quarters, but remained 

ow compared to pre-1994 levels. Agrlcultu rat chargeoffs also registered an Increase, due to stepped-up 

charge-off activity at a few large banks. Noncurrent 

%o1Lo�s 

s.o 

Quarterly Noncurrent Loan Rates 

1992 • 1995• 

.. .. .......... A&al Estate .... 

C&I ::, ..... 

2� - - ·•. 

,. '\ / ' .... Other ' •

• ••

• 

• • • • • • • • - * �• :,.,_ ••••••••••••-•-••••l'w ... A-"'I * ::: ... -................. .. 

/ .... _

Loans to lndividu&f$ ..... _____ _

0.0 u_..._..._..L ............ ..J.....L..L..L..J.....L....L....L....L....L....L..j.J 

11m 1993 19�S , ... 

• LOa'lt pett <I� 90 or m:>re Oa)'& « In nonaocl\Jal �&, 

FDIC Quarterly Banking Profile 

Second Quarter 1996
agricultural loans declined during the quarter, but re· 

mained higher than a year ago. Net charge-off rates 

on other Joan categories showed either improvement 

or little change. 

In spite of the rising level of loan osses, banks' credit·

card loans continued to increase more rapidly than 

most other categories of loans. In the second quarter, 

bank credit-card loans grew by $7.3 billion (3.6 percent), more than home mortgages (up $4.8 billion), 

loans secured by commercial real estate (up $5.6 

billion), or other loans to individuals (up $5.9 billion). 

However, growth in credit cards registered a smaller 

increase than commercial and industrial loans (up $9.5 

billion). In the past twe(ve months, bank credit-card 

loans have increased by 9.1 percent ($17.4 billion), 

while all other bank loans grew by 7.5 percent. Part of 

the apparent strength in credit-card lending stems from 

reduced securitlzatlon and sates of credit-card receivables. If adjustments are made to reflect securitzatlon

activity, credit-card lending growth shows a slowing 

trend since the middle of last year. Annual data on 

loans to small U.S. businesses and farms indicate that 

the r overall growth rate for the past 12 months has

slowed slightly, to 5.0 percent, from 6.8 percent in the 

preceding 12-month period. During the same time, the 

rate of growth for Joans to larger U.S. businesses and 

farms slowed far more drastically, from a 12.7-percent 

Credit Card Growth Is Decelerating 

Credit Card Loans and Unused Commitments, 9192 • 6196 

$Gillio,,t 1Z·MOl'IU'l Growth Ratt. (%) 

S3.ooo�----------------� 

2.00::, 

� unused commllment• 

• Loene OuttUndlng•

:l<4 1 2 :;"' 1 2 34 1 2 3 4 1 2

1902 1903 1004 1995 1996 

'l•:\1�$ Olll!o"·<•��I k:11$ �G dl�l.l'<f•$11tt• w,.,.,i•:I _ .. ,...,,,.. ;,,,, M, ,-,,1 .ot<I 411 

....,)nt1 ;d �os :.1,rt 1� mtt. �.,.,:x.,, .l•d �, .l·: v.•�•·o ""'0 , .... "'' i.:o,,;11 as" 

:Y:O 

FDIC Ouarte1ly Bankng Prolile

Second Quarter 1996 

90 

10 

0 

increase between June 30, 1994 and June 30, 1995 

to a 5.2-percent increase in the most recent 12 months. 

Banks paid $8.1 billion in dividends in the second 

quarter, a 19.5-percent increase from a year ago. 

Retained earnings added $5.7 billion to the industry's 

equity capital. Total equity rose by $11.5 billion to 

$364.9 billion, or 8.30 percent of total Industry assets. 

This is the highest level registered since 1941. Much 

of the increase in equity apart from the contribution 

from retained earnings came from growth in goodwill 

created by mergers. The overall increase in industry 

equity was accomplished despite a $2 .3·bllllon deduction attributable to higher unrealized losses In banks' 

available-for-sale securities portfolios. The industry's 

tier one (core) capital, which excludes goodwill and is 

not adjusted for changes in values of securities holdings, registered a $5.6-billion net increase. 

Credit Card Loss Rates and Personal 

Bankruptcy Filings, 1984 -1996 

Ne! Ch$rge Ott 

Aa1e {'%) 

6 

5 

4 

3 

2 

PeJIIONI 

B•nkn,ptcy 

Fllmg& 

Number of Bankruptcy Filirig8 

fTht•osam.l�) 

3C'() 

O 1234123412341234123412!4123•1>)411J41l�412341734l� SC 

19..tW 19B5 1986 19s1 199a 1\le& ,m 1991 1m 11193 1994 w�s · �Ai 

Sw:>es: 8al'\kr,.11)ttles · At.loninitllaaive Office u'111e Uni1edS111M Criwlll 

C.•uuge-0.f A,!c-s· Cull'me�i&l 9:llic C:,!I R�rtr. 

The number of commercial banks filing Call reports 

declined to 9,689 from 9,838 at the end of March. Thirty 

new banks were chartered during the quarter, bringing 

the total number of new charters in the first half of 1996 

to 59. Mergers absorbed 175 banks in the second 

quarter, and two banks failed. The number of banks on 

the FOIC's "Problem List'' declined by 28 institutions, 

to 99 banks with combined assets of $8 billion, from 

127 banks with $13 billion in assets at the end of the 

first quarter. 

FDIC-Insured Commercial Banks 
TABLE l·A. Selected Indicators, FDIC-Insured Commerclal Banks 

Return on a6Hls {%)...... . ............................... � .. I 1

9:�� 1

��� 1;�15

7 

1992 

0.9S 

1gg�

4 __ �19

�

0

�

3,...-��-

1.1s 1.20 

Retum on cqui1y ("o.) .................. , 14.4.'l 14 ?8 M GG 

Cor� c.qJl1c1.I (lev�ra.go) ratio {°A)..... 7.72 7.i; 1 7.61 

Noncurront :\.0.sP.1� plus 

14.61 

7.64 

o111Efr raal 01:ot.110 <>WfllXI to a.sutr. (%).... 0.82 <),94 0 .85 1 .01 

Net cherge-olfs to lo1m1:o (%)... ................................... 0.56 0.4 1 IJ.49 0,50 

Asset growth r::i;te (o/o) ....................... ....................... S.42 7 .15 7 .5'3 8.21 

Net nterest m1.rg:ln {%) ............................................, 4.24 4.30 4.29 4.36 

Nee oper:\ling inoome grrowlh (%).. ............... ... ........ 9.?3 5.98 7 4!1 16.16 

Nuoller t>t lnstllUllons repnning..... ..... .................... 9,669 10 169 9.940 10,451 

Percentage ot u111,.1ro1itctbl�lnstltu1ion11t .. ,.................. 3.51 3.26 :t.S1 3.97 

15.a4 

7.65

1.61 

0.85 

5,7? 

4.40 

�5.�7 

10,958 

H9 

Number C>1 prohlem in&li1ul ot,s............. . .................. 99 190 144 247 4?6 

Assets of problem ini.1i tutlons {In billion�)................. $8 $23 $17 $33 $242 

12.98 

7.21 

2 64 

1.27 

�.19 

4 41 

97.41 

11,462 

G 85 

787 

$408 

Number of fa ledhl�� �ted ins1ilutlon�............. .......... � 4 --�...;6e_ __ .,..:.1.!.1 ___ ::,42 s_ __ ..:.::::...._ 

·Through Jum,1 30, fall()S 3nnuslized whe1e a�r()prJat&, Asset groWih ra1es are tor 12 monlhs ending June �o. 

100 

1991 

0 53 

7.94 

�.4!t 

a.02

1.59 

1 22

4 11 

,0.63 

11,Q?.1 

11.60 

1,0tG 

$!i28 

108 

TABLE II-A. Aggregate Condition and Income Data, FDIC-Insured Commerc:::la:.:.l .::B.:,.an"'k"'s'--------

(do/tar figures in mi/lions} P1alln11t1a,y 

Nurnber <>f lh$1llutlons repor1i ng ... 

Total empluy�t::1$ (full-time e,quiv�lent) ... 

CONDIT/Or/DATA 

Total a..�t!:............................ . ... ......................... .. 

Loans secured by rec1I estato ........................................... . 

COfTlm�rci:\1 & iodust,ial loeM .......................................... . 

Loans tu tntJ vldua s ....... ..................... ........... ........... .... . 

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

Olher IOWlS & looses. ................. , .............. .... ...... .......... . 

Less: UnNruad ln�ome ................................ .. . 

Total ln;lnJ:t P. lea:ses .. ........ .... ...... ................................... . 

Le:.s: Rosorvo for l<>ssei .. ........... , ..................................... . 

Ne! loans & laase� ......... .................................... . 

Socun1los ................................ ,, . .... ........... ... ..................... . 

Olher rett.l eshd"° owne.J ................ .... ................................. . 

Good-ovi

ll and other inlangib as .... ......................... ,,. , .......... . 

All o1h¢r MS01S...... ............... . .......... ............... . ......... ... . 

To1al l abilitie� and cepilel ....... . ............ .............. ,,.,,, .. , .•. 

, 

Non!ll1orost b1>arin9 dP.-posits .. ............................ ...... . 

ln1er��l-b�1i111:1 dt::1poslls.......... .......... . . ...... ........ . 

Other �rroWRd tunds ............. ........ ........................... ........ . 

Sltlord!nat1>d doot ............. ................ ............................. . .. 

Air other l ::i:hilhiP.� ................. ........... ................ .......... ........ ,

Equtty copltal.. ..................................................................... . 

2nd Quarter 

1996 

9,689 

1,415,218 

$4,396,846 

1, 103_,79 

685,414 

537,487 

41,407 

:!28.244 

6,625 

2,690,207 

53.570 

2,636,637 

806,485 

s.�48 

42,810 

905,567 

4,396,846 

604,794 

2,45,;,6A1 

690,420 

47,816 

232 261 

364,934 

fat Qu.-ttyr 

1996 

9,8 38 

1,458,-146 

$4,308,2 30 

1.0A9.4:\0 

675,0oO 

52'1,292 

38,019 

310,013 

s.613 

2,ti:.J2,U91 

52.048 

2,579,143 

811,670 

5,830 

:11,661 

,rro.927 

4,�08,')90 

�f/0,1:101 

2/155,167 

6 57,968 

45,427 

226,232 

353,436 

2ndQ11an�r 

1905 

10, 

16!:I 

1,47�.703 

$4.170,768 

1,050,005 

640,048 

503.088 

40,313 

211.175 

G,211 

2,498,418 

62,9:JU 

2.445,480 

Hllf..920 

7,351 

26,881 

885,137 

4,170.7G8 

56?.,689 

2,a44,4'!7 

647.920 

4?.,?.01 

238,702 

3:14,779 

o/...Change 

95:2·96:2 

·4 7 

·0,3 

5.4 

b.1 

7 .1 

6.8

2.7 

21.1 

.9.4 

7.7 

1 2 

7.8 

0.1 

·?.7.3 

59.a 

2.3 

S.4

7 5 

H 

6.6 

13 3 

·2.7 

9.0 

Loans sud laase$ 30-80 cJays pa!SC dt1P................ ........... ..... 33,744 94,303 2e:m1 17.!:i 

Nonoummt lo:1n�and teues . .......... .... .. ....................... ,.,.,. 30,217 at,049 91.6G2 •4,6 

Ftestruc1urod ICJ�n& .lnd eases.......... .................. .. ........ ... .. 3.572 3,G64 5,467 -3'1.7 

Oirect and indireCI inve.s\men1s iu ra�I �1ato.......................... 574 S76 575 · U.c! 

1 ·4 Fa1111!y ra:.klllntlal mortg:\!)A!......... 6:l4.S79 629,78 2 ti07 ,4tl0 '1.5 

Mortgsge-bscked sacwltl&s ................. ............... , .... , 332.'381 3:lfi,?37 320,020 4.0

€amin9t\r.11tt'!tr. ................ ,. ........................... ........................... 3,807.525 3,756.IS:J 3, 602,696 6./ 

l.ong-term use.ts (5+ ytiar�).......... ............................. .......... G26,404 616,337 556,545 12. 6 

Vola1!11> liabilili1¥.t ..................... ,.... ... ........... ........................... 1.349,378 1,200,14:j 1,24 4,986 8.4 

For�lgn Olli�..-dt.'POOit$,......................... .. ... .... .... ........... ... 462.031 '154,432 4:t!:1,560 5.1 

Unused loen commt,mmts........................................... 2.334,311:1 ? ,:>49,622 1,086.309 17 ,5 

Off-bol.111�0.shcct d1>1ivafivP,�........... . ... 0.� ..c. . 

.. � .. � .. "'. '"""'"'""""' __ 

.

!1:t.Y,c, 59:,:H::,',c,::432 18 409.323 17 ,91a,48R 

Prellmll1<U>' P1ali1nl11c11y 

-�

First Half First Han ?.nd Qua,ter 211d Qwrt�r %Chan!)Pl-��

1Y9�

6'=---� 

1 995 __ %C='"'ha,,n,.q"•- ..

.,,19"'

9

"'

6 1995 05: 2-96:2 

Total i n1erast incom"·· ................................... ,.,.... $153,153 $1

.

47,928 3.5 $77.197 $75.588 2.1 

INCOME DATA 

To1al lntcr<ist oxi,cnse ........... ,.. ........ ... ............ .. 73,it24 71,859 2:1 �6,787 37,194 ·1. 1 

Nel lnt�(��t lr �om1> ............................. ,.............. 79,329 76,069 4.3 40,410 38. :194 5.3 

Prnvir.ion for loan los.ses...... .... ........................... 7,800 5,594 !t9,4 4, 228 2,911 45.2

Total noni111"AAI income.................... 45,87?. 39,313 1G 7 24,149 20,1G3 19.8 

Total noninlere.sl �:xμ�ns" .................. ........ ,... 78,971 74,516 6.0 39,303 a7 ,494 '1.8 

$�11filiP.S g3ins (IOSS91>) ..... .... ..... ,. .. ,,,.,,.,., .. , 552 311 77,7 79 355 •77.8 

Applic.lbl1> inoomt'! 1:lxes ..... , ............... .......... ...... 13,553 12,478 8.V 7 .�4'9 6,509 12.9 

F.xl1aordi roaty yaiios. nol .. .......... :

.

:

:

·

:

·

:

·

.

:

:

: .. :: ... :

: ... :

.

:

:

.:

.

:

.

:.:1 90 23 283.4 24 (11) N1M 

�l���J,;��i�:L::::�::<�:� ��1i� ;���!� ��:! 1�1��· __ __;:"';"J"'i"�---fri 

NIU·NOI mes.rlnglul 

FDIC-Insured Commercial Banks 4 

FDIC Quarterly 8anklo9 Profile 

Second Quarter 1998 
TABLE Ill-A. First Half 1996, FDIC-Insured Commercial Banks 

-

As!9I Size Distributon <.,Oo ra RP:iQinn 

Lo�s $1U0Millir,n $1 RitlioO Grea� 1::�, WO$l 

FIR Sr HALF PreUmjnary All than $100 to to lhan$10 1 North· Soulh- Mid· Soult,-

(The way if is ... ) tnstilulioni:t Mllinn $1 Blliott $1 o Eli!llon Dillion e'ISI eAsl Canl1a1 W9SI wast W1-1s1 

�J-:·;:,1,1r :,I :no: :u.io11:: ·�,:,;;·lmo, .. 9,689 GAG9 2;ii16 3..)1 73 7G5 t.5n 2.1�/ 2.454 1,121 1,n?a 

To;$!1: asiF.-ls (in billions) .................. $4,'.l!:lti.fl $�:10.' $-381.0 $1,001.'l $2,424.� 1,6fi7 I S767.6 $697.2 $284.0 S$�.8 $G�b.2 

Tot R

I 

dapo�il!i. {in bi

lrions) ................... :J.061,4 ?f�1.5 567.9 GOG.7 1.54�.� 1,1}4;!.4 �)1.A :i09.!> 216.1) 260.7 480 9 

NQt in:'.(lmc (In millions) ........... .... .......... . �.�18 1,(�2 4,:\51 6,-1<'15 12,S69 8.G03 4.CG3 4,111 2 042 ,.�!:t 4,010 

'% ol unp,oJt.Wltt l"l>lllullons ..................... 3 .5 i , .. 1:1 2. t 0.0 4.2 3.7 3.3 2.3 2.3 U.1 

.. ,., ot nst:1ul1ons with eR1nings �«ln.s ..•...... ·11.� 6!=1,9 78.2 76.1 39.� .

,4.1 7R.t 7?.7 75.R 66.?. 66.9 

Performance Ratios (annuallted, %) 

Ylcld nn eamin!l fl�l'SP.I� ......................... 8.10 8.30 fl.:;a 8.44 B.QI 8.10 0.1/ B.O'J 8.34 7.76 8.64 

Cost ol fundny �cu11lng cf.S.rots .................. ; 3.94 3.G7 3.61 3.�o 4.15 4_..qo S.86 3.Q3 S.BG 3.'11 3.43 

N1:�I inteM�I margin .•.................................• 4.24 4.63 4.67 4.06 3.00 3.00 �.:;, t.,16 4.411 4 .35 5.18 

Nonlntorost income to caming �ssets ....... , 2/15 1.16 t.$5 ?.a1 2.9'1 3.17 1.87 1.64 c!.6� 1.85 2.56 

Nonint'3res

.

t e�

panse to ecf.1nt.)g asscts .... , l t.?� 3.68 3.8.S 4.00 4.46 A.M 3.n 3.51 •1.16 3.92 4.81 

Net Clf;P.:atin9 cnr.omP. to �s.seLs ...•............. 1.16 1.21 1.?8 1.28 1.(JT 1.03 1.22 1.17 1.41� 1.?.4 1.28 

ne:um c·-, aHe'.L •L 18 1.22 �.30 � .:V> 1.10 '.06 1.2.4 1.1') 1.1.3 1.23 1 :Kl 

.:ie11..r'l on equity ................ .... ........... 14,4.<I 1 t.6S 13.75 ·.1t.U 14.�\ I L,O" S4.7Q 14.31. (6.27 :1..20 14.54 

Na� ch.rye cl'� lo 1om1� �rd li;�se� .. 0 f� {l.1!i ll :�7 n.02 0 ::'1 3.G! 0.42 1: 4:1 '.'>.t::i :'I./� 0.71 

toatl loos �ruvlslon to not ct",311JP.-Off!., 101.01 161.33 114.1i 111 .,�n 96.19 1'Z.4S 1'2 03 '17.3'1 11 G.GO 1t6.12 I.\U,�1 

Ccmdi�on Fhtios (%) 

lost �loWMCO to: 

Loans and lQasc::. ..•.. ....................... .... 1.9il 1.�5 1.60 2.0fi ?.1� 2.S9 1.U1 I.GO 1:10 1.!:14 2.Hi 

Noncurten1 loans and h�...S8f. ................. 177.?.9 154.41 15-1.37 185.31 104.S9 1�:i,\.:10 199.71. 192.8,i 183.01 1 Gl.23 186.31 

Nonr.1111'f.("lt .11sse1s f1lus 

c.•lhcr roal csta1c ownoo to ::1ssP.ts, •.. ... .. 0.82 0 84 0.1.Ul n.M 0.81' 0.05 O.G5 0.63 U./C, 0,ij4 0.99 

Equily co.;iitill rcltio .... ..... ... ...................... 8.SO 10A2 0.111 9.03 7.4� 7.45 8.46 8.50 a.es 8.82 9.tiij 

::):,rP. ��pi;� {l!!\•P.1:=;.ge) ratio ........... ,.n 10.44 9.26 8.28 $.73� /.IU 7.97 A.14 9.60 8.31 7.90 

Nal lo�ns and ,�a�!'t io dP.posit.6. ... 86.12 65.04 71,6� 92 59 91.95 87.04 S!i 54 6/04 �,:,!-:I:! t,1-\,:riA 91.20 

Crowlh Ralee (year-t�year, %) 

Assets .......................................... �.42 11.84 9 41 2.:to 5.72 4.na 6.36 

l::::q1.dty c�pl1� ........ .................................... 9.01 4.06 1-1.72 5.84 6.33 6,U2 19,84 

Not il"IIP.tP.�t nr.cmA ................. ............... . 4.2!: 2.13 12 12 :\,!:16 S.fU 6,H! -0.(8 

N&t lrco:no ................... .... . .......... .. . .. 13.3� 11.59 18.!>8 5.24 !),14 10.H!:1 4.4!i 

Noncurrent essels pJu.s 

oiho1 roru cs�.'.'do owned ........................... -9.61 ·15.2S 3.11 2.05 12.!:I(\ 2..42 -1�.!iR 

Net cha1gM>trs .............. ........... ............... 44.69 �4 . .S& 81.06 7S.SO 51.-19 88.22 27.52

Lo:icn hr.� pmvision ....... ........... ..... 39.44 35.28 ,oo 34 4�1.1:l !il'\.�a 64,S?. 6 75 

PRIOR FIRST HALVES 

(Tht way It IVU ••• J 

Nu1nb8' of los01ulioos ... .......... ........ 1!:l�S 1 10,169 o,gs1 2>783 3�1 68 ij\ 5 1,585 2,220 2,560 ';,815 1.074 

, . .................. . .......... ...... 1903: 11,19� : H,M9 2,7'R 3(9 5� e.95 1,8/0 2,4S4 2,744 ,

,S09 1,2-18 

......................................... 1991 ! 12,15A j 9,075 2.·112 :t21 46 1,0..�9 1,935 2,G91 2.!121 2,12� 1,451 

Tot.111,t!m'!ls (in billions) ... .......... ...... 19951 $<,170.0 $Z<06.e $680.7 $1,057.3 $2,126.2 1,590.1 $701 6 $�1.5 $2€M :;s,s.o $616.0 

. ....... , . .•............................ 1Q93, 3.569.4 340.7 6'.7.1 1,0(0.7 1,550.8 1,3"8.4 560.5 587.0 2:19.1 286.S 5110.1 

................ .... ............ ...... 1991 I 3,377.3 357.5 664.1 1,058.2 1,29H l,'176.7 509.4 553.1 228.6 2e5.7 545.� 

I 

RP.tllfll m ,t!.58\S ("k) .... .... ..... ........ 19S5' 1.13' 1.1a ,.22 1.27 1.02 0.99 1.15 1.17 1.41 1.17 1.27 

......................................... t9Q.q 1.20!. 1.25 1.22 ,.2u 1.12 ,.ne 1.22 1.211 1.43 1.56 1.1}.5 

........................................• 1991. 0.6(): 0.97 0.79 0.53 0..47 0.31 0.63 n.9?, 1.13 O G4 0.72 

N�t chargo.offs 10 l�ans & leal'Ses {�) . 

...............•......•.................• 19!)!::i� 0.41 0,17 0.33 O.GO 0.37 0-84 0.26 0.?5 0 . .d5 0 17 0.6·1 

....................................... . 1993 I 0.87 0.30 0.50 n s5 1.10 1.35 0.42 0.50 �St; 0.25 0.9'3 

................ ................. ...... 1991 1 1.45. 0.50 0.82 u;:.\ 1.81 ?..18 1.02 0.7G 1.00 t,:lO 1.12 

N,'ln�.1.1irenl a.ssets plus 

OREO 10 l\SS�ts (%) ............ .1995 0.94 0.05 0.8S 0.86 1.0t 1.18 0.69 0."4 o.�5 0.65 1.22 

.............. ............... . 199� 2,18 1.28 1.58 1.91 2,8( ?..95 1.45 1 21 1.21 l .�5 2.98 

............................ ........... .1001 3.24 1.78 2.10 S.17 4.2'J 4.74 2.41 1.78 1.56 2.&J ;j,on 

�qulty capit.:11 ra11o (%) ...................... u,195 8.09 10.39 9.35 8.49 7,0.q 7.50 8.07 8.22 8.83 8.59 8.48 

.................. .•... Hi93 7.89 9.80 8.63 8.20 6.94 7.14 7.94 8.14 8.9'\ 6.24 P..79 

........ ... ...... ........ .. ......... 1991 6 71 Y.10 7.8.

S 6,74 5A5 5.04 '/.(9 7.�s 8.08 0.77 �Jl'J 

REGIONS: Northeast- Ccnneotii::01, Delaware, Dislflct of Columbia, Ma ne, Maryland, Massachusetts, New Hampshire, New Je 1sey, New York, Pennsylvania, Puerto A.:O. RhOO& Jslaod, Vennon1, U.S. Vlcgln Islands 

Soulhssst-Alab&.m9, Florida, GRorgia, Mississipp, Notth CAmlin a, South Ca1o! na, Tenneai::.eP., Viroini11, West Vi1gini9 

Central - llllno�. Ind ana, Kcntvc:ky, MicM;)an, Ohio, Wl,consln 

MftlWOSt · · 10'

11.1, Kansas, M nneso1a. M SSOUrt, NebUlSka, NOrtl) Oako1a, Soulh O�kOta 

Soulhw88t-A"'anaa:=i, l0t1iBisna, New Mexico, Okhlhoma, TAXAS 

Wesr-Alaska, AriZooa., caurom a, Coklrado, Hawaii, Idaho, Montana. Nevada, Oregon, Pacific rs1ancts, UW.ll. W.1sn1ng1011, Wyoming 

FDIC Ouartefly Banking Prolile 

Se<:ond Quarw 1996 5 FDIC•lnsumd Commorcial Banks 
TABLE IV·A. Second Quarter 1996, FDIC-Insured Com',

mii'e,'-rc7i

ci'

a

",

I B,c.•

=;

n;.c -· - - - j As�;.l Slw Ol�t1lboJtion k'-'s'- � �

t"l�o ,o h �ie 

=

Ois1ribu1ion 

=��by ��Region· 

$ECONO QUARTER Pr.1/mlnary 

(The way it Is ••. } 

Number ot inslilul ons rP.pof"li

nn ............... 

Total .issl)1:. (In bmtcn:.) ..... 

lot.d dspos l& ( n billions) ..........• 

N�1 inr.ome {in milllont:) ........................... .. 

% uf 1Jn�1olll.tble nstltuU011:. ..................... 

% ol inslitulions with esinings !)�ins ........ . 

Pertormance Ratios (annualized,%) 

Vie"1 on P.:lrning :\.c;!.et.,; ...................... , .... .. 

Cost of fundlr.g earning i1ssot.s ........... ..... . 

Na: 'n1eresl ma:gin .. .. ... .. .......... ........... . 

Non'nl.,msl ir.eomA 10 �arning ::isso1s ..... .. 

Noh n1s18&I expensa to earning �rats ..... 

Net OpP.rR.ting ;ncomP.10 i:issel� ................ . 

Rt.!UUl 011 a:H1ts. 

Return on equity ........................... ........... . 

NP.1 �h:lrgP.-o1fs 1010.1.n;; :1/Y.'l l�:-.,,;ar .... ... . 

loan loss provision to net chruga-olls ..... . 

Growth Rates (yeaMo-year. %) 

Nol ,ncrns� ·11co":'t& ....................... . 

NP.l nccmo ............................................... . 

Nel chsrg�otfs ..... ........... , ....................... . 

loro, loss provision . ................................ .. 

PRIOR SECOND QUARTERS 

(The Wlty It IVI$ ••• ) 

R�lum or, ct::.::.eh; (%}..... . ........ 1 095 

.......................... .. ....... 1993 

......................................... 1YA1 

Nel cltergs-olfs 1o roans & laases (%) 

.................... , .. ,,., ............. ,199!'.i 

......................................... 1993 

............ ........... ...... 1991 

: _) LHS tn.tn O'll, 

�:OO'°liotoS'!f. 

m 5'1-;to10.,. 

- Grn�r ,h,11 10, 

' 1--�t. -,-,"".

i',1"o"'o"M,;

11;;

11

=

.,., "":$c'1 '=a;;m-, "', .. -�<,--,..-1 -.. 1-----"�•"••==.= l -· _ WeM . ---· 

A.II lhan$100 lo lo 1han$10 Norllr South· Micl- SnvlO· 

lnslilutio."ls Million $1 Billion $10 Rillion Aillion ear.t P.�!'.1 f!rmtral wosl Wai.I We�, 

9fiHY 6.469 2,fl16 � 1:3 �--G�5-- ., -1 .

�so

"'--2 2.1

��

37

,=..--2.

4

��-�

5 4�1.7"'--2

�

, 1

�

.

0

�

20-�

$4.30G.8 $290.1 $G8LO $1 031.2 $2 424.5 $1,657.1 $767.6 $697.? $�84,fl $�;/!;.II $6!;5.2 

3,061.4 I ?!>1.5 667.8 696.7 1,64�.6 l,04l,4 S!i1.B 50�.S 216.0 2G0.7 480.9 

1

'.

t,7H

!

:� '.I tJ9�:� 2 i,�:� 3,

40�:� /.2/�:6 5,

12!�

� 2

,

4G��; 2

,

08� : 1.00::

� gg�:

! 2, 04::

� 

s9.3 

. 

ss.s 1s.5 1,.a sr..s 1�.1 n.9 1n.1 es.s 6� 1 66 .1 

H,211 

3.01 

C29 

2.5� 

4.17 

L:>j, 

1.27 1 15.-42 

o.!i7 

112.22, 

�.25 

14.!:I/ 

36.?7 

"1S,22 

1.1G 

1.17 

O.!i!: 

0.4S 

O,YI) 

1.71 

U.36 

3.G6 

4.70 

1.20 

3.73 

1,24 

1.24 

11.85 

0.2:, 

146.89 

1.HI 

1.21 

t\,76 

O.?O 

0.34 

O.GS 

H.a1 

3.59 

4.72 

1.5'.I 

3.28 

1.!'\I 

1.31 

13.88 

OArt 

111.92 

1.23 

i.,g 

0 76 

0.37 

0.56 

0.03 

a.S1 

3.79 

4.72 

2.65 

4.13 

1.�6

1.37 

15..38 

().68 

119.26 

1.27 

1.3:l 

0,42 

0.72 

0.96 

1.72 

H,Oll l\,U2 

4.00 '1.23 

:l.9' 3.7G 

�.Otl 3.:u 

�.2� 4.3€ 

1.?( I ,l:i 

1.23 1.25 

16.00 16.5:l 

O.!i1 O.E:S.t\ 

104.98 123.87 

S.24 

3.BG 

4.:la 

1.93 

S.70 

1,:;9

1.30 

15.42 

0.42 

120.14 

0.10 

HO 

4.:,o 

1.GO 

3.53 

l,::!0 

1.20 

14.17

0.41

121.45 

1.58 13.83 4J32 

1.07 

1.04 

O,!iO 

O.S6 

1.12

2.32 

2:i.08 21.0:, a,gg 

46.36 63.54 !:4.7!'.i 

�9.66 11S.6a :m.�,5 

1.04 

1.03 

0.23 

0.00 

1.:1H 

2.79 

1.18 

1.29 

0.66 

0.28 

0.45 

1.10 

1.HI 

1.31 

0.9? 

0.28 

U,49 

0.83 

Commercial and Industrial loan Growth Rates• 

June 30, 1995 - June 30, 1996 

Kaw�tco 

,., 

a.34 

3.83 

4 �1 

2 50 

4.14 

1.4/ 

1.50 

16 9..� 

O.G2 

115.02 

7.71 

9.29 

4,4(� 

1.91 

4,00 

1.24 

1.21 

IS.94 

0.34 

118.20 

5.M 7.06 

13A8 2.HI 

35,73 107,58 

38.0� GS.62 

1.42 

1.49 

1,15 

0,49 

0.56 

LOO 

1.25 

1.26 

0,6!i 

0.18 

o.au

1.37 

,��� ....... ; .. . 

22.2 

-·

8.89 

3.51 

6.38 

2 .67 

5.06 

1.31 

1 31 

14.34 

0.74 

76.00 

3.66 

OA5 

-0,49 

9.52 

0.77 

1.07 

!.09 

FDIC-Insured Commercial Banks 6 

FDIC Quarterly Banking Prome 

Second QuartGr 1996 
TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

-- · ---- · - I -Asae1Size'Oit.!ribu1i

on ·

--- Less-$100Mimon $1

.

Bilfton Greale, - -

June 30, 1996 All than $100 10 to lhan SIO 

�ns1i1u1io'ls , Vllbn $1 Billion $10 Bill on B llion 

Perctnt of Loans 30-89 Oay.$ Past Duo 

All l:ti'lflS secv,ed by real estalo .............................. 1.27 1.45 1. HI 1.23 1.32 

G<>ns1ruc1!on a.nil r P.�lopmenL .. .. . ... .......... .

.... I.S<t 1.22 1.26 1.67 1.73 

<:<lmmerdal ,esl e!l1s1e ... , ........... .......... .............. U2 1.16 0.05 1.14 1.22 

Mullifamiy reaidi?111i�I real es1ete. . ... .. ..... .... 0.93: 1.02 0.78 o:ro 1. 10 

1-4 Famiy reaidenlial" ... . .................... ':.40 i 1.75 1.90 1.3' 1.4<:: 

H<lme equily lc6ns . ..... ......... ........ ................ 0.80 1.45 0.90 o.ss 0.87 

Commercial and indua'1ial toan.s· .

.

... ... .... .. ..... ..... 0.97 1.67 1,52 1.17 0.64 

Loans lo indMduala ..... .......... ..... .......................... 2.19 2.35 2.01 2.1� 2. 14 

All other loans er.d laese.s �ncluding tcum). :J.49 NA NA 1. 10 0 34 

Mem:,: Cof'l''rlerc e RE loans r.ot sec• .mtd t;o RE .. ').b7. 1.04 1.04 1.02 0.01 

Percent of Loans Non current .. " 

All real eatate loans .•..•...........•......... ....•.•. ...•. .. 1.59 0.90 1.00 1.13 1.60 

Conalruc,ion and development ............ ........... 2.24 0.82 0.98 1.-4$ "· 18 

Commercial real e.s!ate . .... ......... .... ... . .................. 1.91 1.16 1.20 1.63 2 74 

M1J!frsmiy rssiden�ial reel 

ea�&te ....... Ui1 0.09 �.31 1.2$ 2.00 

1 -4 Farr·yreaidartis • · ... , .. .. . ... .. ..... c .. s1 9.80 080 0.84 1.02 

Home equity loans c .. 11s. O.SG 0.45 OA7 0.48 

c;nmmercial and lnd'.lslrial oans•• ....... ... 1.1 '1 1.64 1.40 1.09 0.06 

LMns lo indi'lliduals. .. .... .... .................... 1.22 0.79 0.08 1.24 1.41 

Ali olr,M loans end leases (including farm) ...... 0.32 NA NA 0.53 0.20 

\�ar.:c: Comme,c al RE lc<1ns ncl soc1..:cd by RE ... 1.39 1.00 0.52 0.72 I.RI 

Percent 01 Loans Charged-off (net, annual) 

All real Mlsle loa ns ............. , .. ... ... .....• ... ... ... ...... ....•. I 0.10 0.09 0.07 0 08 0.15 

Con�lruction ar.d dP.vek>pmenl. .. ........ ..... ........ .. 0.20 0.09 0.06 0.07 OH 

Cr>1nm,:rd�I r�ttl F!$t4\te,,,,.,, .. , ......................... ...... 0.10 0.02 0 11 0.08 0 14

Mvllll&n .. y 1e$ich:mt:ill ,�a P.star� .......................... 0.10 0.21 0.14 0.19 0.00. 

1·4 F:<1mlly (P.J1;!ife1ul;ir .................... ........ ........... ,. 0.08 C.04 c .. os o.os o.·o

I ium� �,1,,ily b:lrl$ ........... .............. ,, . , . ... ... , . , ..... , .. O.?.I 0.07 0..10 0.1S 0.27 

Cc.,mn�rr.ii:il i'llld inrl11.�1rial nan�·· ........... ... .......... 0.?7 0.30 0.31 0.22 0.20 

I oana to individuals ... ....... ..

. .

•... ........ ...... .... ... .... 2.16 0.55 1.35 2.55 2.29 

All other loans and leuea (indl..'df'Q fafm) .. ....•..• . 0.00 NA NA 0.18 0.04 

Memo: �mmardal RE loans no1 secured by RE ... o.oc ·0.12 0.44 ·0.12 MO 

Loans Outstanding (In bllllon9) 

All IP.I'll et:1,ate loar.� .•.. .. ,,,.,,,., 

........ .. .

.. .. ..... ... . . . $1,\0:J.:) $92.S $2�<.2 $28S2 $481.4 

Cnl'\�tru,:11on ancf TMw.lopment .. , .. ........... ............ 71.6 0.3 19.0 21.3 2S.O 

r.nm1nen:;s

1 

fP.-'I ef.lale ......... ......... ..... .... ........ . 306.9 24.9 81.8 87.0 11S.2 

Mul'. famlly re11ldP.nllal rea e�late .. ... ... ... ...... ... ... ..• 37.S 2.2 8 .2 11A 1S.7 

1 4 Faintly M�lrlMtrA ",, .. , ... , .................................. 5SS.1 t.0.1 114.2 1s�.s 2!:3.3 

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

...... ... 81.5 2.1 12.4 22.6 44.3 

Comrr.ercial and induattiaJ loans. ....... ..... .... 685.4 27.6 73.4 138.S 445.e 

loans lo individuala .......... .. ... ........ ...... 5:)7 5 25.7 75.9 187.7 2'48.2 

AU other k1ar.s ar.d lasses (includ rg !arm) . ... .. :)69.7 21.1 21.7 43.0 278.8 

Mem:,: Ccm:riercial RE bans rr.it secu,ec· by fl.E.. 20.8 0.3 1. 1 3.ii IS.7 

Mom6� Other Real Estala Owned (in mitllons} 

All othe, r�ttl es!Al� own�., ..................................... , $S,o4·t,8 $522.7 $1,142.0 $1,07.J2 $2,603.9 

(;<ln�lructlon enrl rl�lopmenl., . ..•... ......... ... ...... .. tl4UI 75.2 210.:) 221.1 93S.3 

Commercia real eslale .. ..... .... ........... 2,526.2 250.0 555.1 538.� 1,182.6 

Mu!Hamily reaiden!ia real es:a:e. 264.0 21.1. 63.6 69.4 119.� 

1 ·11 Fan:'lv residenliaL. ................... 1.16&.C 1'31.7 2!3:).7 222.4 5:)1.2

Farmland ...... ............... ......•..•....... 1�2 !J 44.4 39.0 27.3 32.2 

Other real estate owned in torei n oflices .. 40:).7 0.0 0.2 0.6 403,0 

·excludes home 8quily loana.

*'lncl1..WS *All other loans· for insmutions ;.inder $1 billi:,n in assol s:w.

North·

. 

easl 

1.46 

1.54 

1.59 

0.62 

1.46 

1.28 

0.64 

2.::14 

0.32 

1.2e 

2.16 

5,81 

3.68 

1.54 

1.30 

0.77 

1.18 

1.�7 

0.28 

3.54 

0 10 

0.98 

0.26 

0.20 

(1.1 S 

0.17 

O.Zl 

2.59 

-om

o.o�

$290.7 

10.3 

7:)J'.i 

11.:) 

rn2.4 

23.1 

261.6 

169.0 

165.0 

4.0 

2,015.,4 

222.7 

677.7 

116.9 

372.1 

23, 1 

402.9 

Geopraphic O

.

iatri�ion b� Region 

e .. , We,i 

Sout-h·-- Mid· Soulheast Cenlral 'f/861 W9SI 

1.12 1.1, 1.0U 1,:l8 

1.11 1.77 1.32 1.!iO 

0.79 1.04 0.05 1.00 

0,94 0.03 0.46 O.OC 

·,3l. 1.40 1.C7 1.55 

0.78 0.84 0.65 1.72 

0,94 1.25 UIO 1.98 

2.o:J 2.<11 2.14 1.89 

0.�R 0.96 0.34 0.46 

0,78 C::.61 1.15 0 54 

M3 0.88 0.81 1.01 

0.02 1.28 0.98 1.90 

1. I 0 1.29 1, 11 1. 11

0.80 1.04 ·3.46 0.68 

0.7� o.es 0.54 0 81 

0.34 0.33 0.27 0.96 

0.85 1.1\ 1.54 1.20 

0.94 0 .78 1.07 0 56 

0.20 0.32 0.42 0 45 

c,:14 0,71 0,81 0,78 

0 .04 0.04 o.oo 0.00 

0.03 0.12 0.04 -0.02 

0.02 0.0-1 0.00 

-

0.07 

0.0-1 0.01 -0.S1 0.12 

o.os. 0.03 0.02 0.09 

0.14 0.10 0.03 oos

0.28 0.90 0.23 0.30 

1.73 1.45 2.38 1.0.� 

0.11 0 09 0,10 0.10 

0.02 0.05 ·0.07 ·0,12

$261.0 $190.0 $74.V $82.6 

21.0 12.6 5.1 8.0 

00.8 58.1 20.4 24.5 

7 .5 0.3 2.6 25 

142.0 9>.:> Z5.5 4$.6 

17.::1 16.8 3.0 0.0 

102.:l 12e.2 39.0 4H,S 

90.5 89.1 40.6 ::tt'i,5 

40.5 4M 23.9 14,:l 

9.1 2.7 0.7 1.0 

$951.0 $461.9 $241.0 $967.0 

282 S 73.0 GS.1 �0.6 

413.9 261.6 110.2 21:l.6 

31.1 2S.7 R,3 ••• 

203.� 93.� 4�.7 .

,9,6 

:a.6 6.1 22.7 2fi:t 

0.6 o.o o.o o.o

West 

1.29 

2.07 

1.08 

1.65 

Vi6 

0.62 

0.91 

1.95 

0.45 

0.76 

1.52 

9.51 

1.80 

9.81 

1.00 

0.42 

1.12 

0.00 

0.43 

0.64 

0.20 

0.57 

0.19 

0.2S 

0.11 

0.-14 

0.23 

2.1¥7 

0,26 

·0,02 

$100.7 

14.6 

60.5 

7.2 

88.6 

20.3 

105,8 

83.9 

62.5 

8.4 

$1,311.5 

165.1 

649.:J 

'/7.4 

376.tl 

42 7

0.2

NIA • N<lt availsbie 

*''Norcu1renl loan rales repreaent �he i:;e•centngs of loans 1n Gach c�•.ouo,y �hn: a,c u,,s1 duo !JO <mvs ur mor¢ "' lhat .ii:� In nooa,x:•.1al s�atus. 

FDIC Quarterly Banking Promo 

Second Quarter 1996 7 FDIC·lnsured Commercial Banks 
SAVINGS INSTITUTION PERFORMANCE- SECOND QUARTER, 1996 

• Earnings Of $2.6 BIii/on Set Second Consecutive Quarterly Record 

• Industry ROA Exceeds One Percent For Second Quarter In A Row 

• Increase In Net Interest Margins Continues To Propel Earnings 

• Number Of Savings Institutions Falls Below 2,000 

Savings institutions earned a record $2.6 billion 

during the second quarter for an annualized return 

on assets {ROA) of 1.02 percent. This Is the 

second consecutive quarter that the Industry's 

ROA has exceeded one percent. Industry earnings exceeded first quarter profits by $50 million, 

setting a new quarterly record for both earnings 

and ROA. So far in 1996, thrifts have reported the 

two highest quarterly levels of earnings and ROAs 

ever turned in by the industry. Income tax expenses declined by $215 million from the previous 

quarter as one institution reported a large tax 

benefit. 1 The other significant contribution to the 

record earnings came from a $207-million increase in net interest income. As a result of these 

improvements, core earnings (net income excluding securities sales and extraordinary items) Increased by $173 million. The higher core earnings 

offset a $193-mlllion decline in pre-tax gains from 

sales of securities. The return on equity {ROE) this 

quarter, at 12.14 percent, was slightly higher than 

the first quarter's ROE of 11.97 percent. 

Quarterly Net Income, 1992- 1996 

$Billions 

' 

3 

2 

0 

a $ec1Kltle,a •1td OV'lff G•ine,. Hff 

W Ntt 0Pt'Nllft9 tn,come 

:!.4 

12.S 2.G 

, ,

·�

S 1. OS 

� 

! 

� � .. �� n"� � �1 ·�. �

;_: - . ; I 

! : I ! I I 

I . 

• 

•

1 

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

199:? 1993 1994 1995 1996 

Profitability in the second quarter was well above 

the level of the second quarter of 1995, when the 

industry reported a 0.76 percent ROA. Net Income 

was $686 million (36 percent) higher than a year 

earlier when thrifts earned $1.9 billion. Net Interest 

income in the second quarter of 1996 was $541 

FDIC-Insured Savi

ngs Institut ons 8 

million higher than In the same period in 1995. 

Total interest Income was $132 million higher, 

while interest expense declined by $409 million. 

Non interest income Increased by $325 million from 

a year earlier. 

Net Income for the first six months of 1996 totaled 

$5.1 billion, 40 percent more than thrifts earned in 

the f rst half of 1995. The industry ROA in the first

half of 1996 reached 1.00 percent, up from 0.72 

percent in the first half of last year. Net interest 

income in the first half of this year was $767 million 

(five percent) higher than in the same period of 

1995. Total interest Income increased by $841

million or two percent, while interest expense 

changed little, rising $74 mllllon. Earning assets 

were $6.1 billion higher at midyear than at midyear 

1995. With two consecutive quarters of strong 

earnings, the thrift industry has achieved a ROE of 

11.92 percent compared to a 8.96 percent ROE in 

the f rst half of 1995.

4 • 

3 

Quarterly Net Interest Margins 

1992. 1996 

' 

3.53% 

: ......

.

..

.

....

.

.

.

....

....

..

....

..

.

.......

..

......

....

.. t •• .

• ,.• I ""•, •' 

.

...

.. 

• I 

.

.

. • ... ....

..

..

.

.......... iA11ets > $100 Milllon 3.24% 

1 2 3 4 1 2341 ,34 1 2 3 4 1 2 

1992 1993 1994 1995 1996 

Net interest margins rose by six basis points from 

the first quarter, to 3.26 percent. The average cost 

of funding earning assets declined by ten basis 

points while the average yield on earning assets 

1

First Na1lonwlde Bank, a federal Savings Bank in Dallas, 

Texas, reported a not tax benefit of $110-mi!lion for 1h& B':toond 

quarter. 

FDIC Quarterly Banking Prolile 

Second Quarter 1996 
fell by just four basis points. Net interest margins 

improved from the prov ous quarter in all regions

and in all size groups. Compared to a year ago, 

margins were up by 21 basis points, from 3.05 

percent. Although tl1e yield on earning assets 

remained unchanged from a year ear ior, thrifts

have improved margins by reducing the cost of 

funding earning assets. Over the past tw·elve 

months, as the yie d curve has become steeper,

average asset yields have remained steady while 

average funding costs have declined. Thrifts have 

increased the average maturity of their assets by 

emphasiz ng growth in loans over securities. Al

the same time they have reduced the average 

maturity of their liabililies by replacing depos ts 

with other borrowings. Nondeposit borrowings 

have increased by $21 billion from a year ago with 

almost two-thirds (63 percent) of the increase consist ng of advances from Federal Home Loan

Banks reported by Thrift Financial Report (TFR) 

filers. Deposits held by thrifts were $17.3 billion 

lower than a year ago, falling $7.3 billion during the 

second quarter. 

Quarterly Net Charge-Off Rates 

1992-1996 

Perc:ent 

... �-------------

12 

0.6 

• 

I\ 

I \� .. · West / 

'·, I \ \ 

'·, -, I\

•. I

• ,' \ ,I .. 

/ ""' ... · ' . . ' '. Nonheasi' 

0.$ .... / • •.,,/ , • \ ' 

•... ' . ' \1 \ 

C.< 

02 

: '\ Southwest . 1 • .,. - - . . / :'' \ .... ,/ . ..

.. 

' . .,..- . 

'-. -�· ·...... \ .

. ···..

. ·

·

. 

... ·

·

. . ...

..........

.. 

� 

1992 

. . . .

. 

......... 

1"93 1996 

Earnings were strong In all regions, with the West 

Region still trailing the rest of the nation. Thrifts in 

the West Region registered a 0.75 percent ROA, 

marking their second consecutive quarter of record 

profitability. Over 73 percent of the Region's thrifts 

showed improved earnings from the second quarter of 1995 when their aggregate ROA was 0.47 

percent. The recovery of real estate markets in the 

West has tagged the rest of the nation, and thrifts 

in the Region have had to use aggressive chargeoffs that have held down earnings to keep their 

noncurrent real estate loans from growing. The 

FDIC Quartery Bonkln9 Profile 

Second Quarter 1996 

average net charge-off rate at thrifts in tho West 

Region was an annualized 0.46 percent of total 

loans this quarter, compared to 0.59 percent in the 

second quarter of 1995. For the industry as a 

whole, the average net charge-off rate was 0.33 

percent, down from 0.36 percent a year ago. 

Loan portfolios increased for the second consecutive quarter as th rifts continued to accumulate 

home mortgages. Loans secured by t -4 family 

residentia

l 

property were up by $7.9 billion in the

second quarter. Reserves for loan tosses were 

little changed, but noncurrent loans declined by 

$522 million, with much, if not all, of the decline 

attributable to a change in the way that institutions 

report noncurrent loans on theirTFR.2 If reserves 

are adjusted to compensate for these reporting 

changes, the "coverage ratio" declined to 74 cents 

i11 reserves for every dollar of noncurrent loans at 

m dyear, from 76 cents at lhe end of the first

quarter. Because of the reporting change, it is 

impossible to determine whether the decline in the 

amount of non current loans reflects actual improvement in the industry's asset quality, because 

as much as $677 million in specific reserves may 

have been previously included in noncurrent loans. 

Total assets for the thr ft industry remained above

$1 tr llion, increasing by $6.7 billion during the

second quarter. Loans increased by over $11 

billion; other assets, mostly investments in subsidiaries, declined by $5.3 billion. Additional TFR 

reporting changes resulted In the consolidation of 

assets and liabilities of subsidiaries that were previously left unconsolidated. With the change in 

subsidiary reporting, the asset mix for the industry 

has changed, accounting for the decline in the 

recorded investment in subsidiaries. 

Equity capital rose by $279 million from the first 

quarter. Because of the large increase in assets, 

the equity-to-assets ratio declined for the first time 

in over a year, to 8.40 percent from 8.42 percent 

at the end of the first quarter. However, this ratio 

remains above the 8. t 8 percent level of a year ago. 

Thrifts retained $1 billion from their earnings in the 

second quarter after paying out $1.6 billion in cash 

dividends. The $525-million unrealized gain on 

available-for-sale securities at the end of the first 

2N�w tApo1t1ng nstwctiOn$ we,e introduced in the first quarter of 

19961hat require TfR fi!ers to net specific r&SAl'IIA� fro,n 1,oncurrent 

loons. Prevlou�ly, thA$$ resa,ves were included in noncurr�nt 

loans. Total reserves still nclude both spccifC and goncral rosorvos. 

FDIC-Insured Sav ngs lnslitutions
quarter declined to an unrealized loss of $252 

million at midyear as increases in longer-term 

interest rates reduced the market value of some 

securities. This swing in securities values reduced 

equity capital by $777 million. Core capital, which 

excludes the unrealized loss on available-for-sale 

securities, rose by $671 million during the quarter, 

but an increase in average assets resulted in a 

slight decline in the core capital (leverage) ratio 

from 7 .88 percent to 7 .87 percent. 

The second quarter of 1996 marks the first time 

since 1937 that the thrift industry has had fewer 

than 2,000 inst tutions. At the end of the second

quarter 1 ,981 thrifts flied financial reports, down by 

24 from the first quarter. The commercial banking 

industry absorbed 17 savings Institutions with $4.6 

billion in assets during the second quarter, while 

the thrift Industry absorbed only five commercial 

banks with $325 million In assets. Consolidation 

within the thrift industry resulted in an additional 

decline of 12 Institutions. There were 24 mutual· 

to-stock conversions during the second quarter. 

No thrifts failed during the second quarter, marking 

four consecutive quarters in which no thrifts failed. 

The number of "problem" institutions fell to 38 from 

42 at the end of the first quarter. Assets of "problem" Institutions declined from $13.5 billion lo $9.9 

bill on.

Noncurrent Loan Rates By State•

June 30, 1996 

• Greater than l 5% 

A.f'b:ona

0.3 

• s.tween.75%•nd1.S%

- Lett '"'-" .76% 

FOIC·lnsured Savings Institutions 

Cotor1C10 

0.6 

Hawaii 

••• 

KanNI 

0.3 

Midwttl 

Central Northeast 

p...,.. 

Aleo 

••• 

.. 

• Noncurrent loan rates represenl the percentage of loans that

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

10 

FDIC Quarterly Banking f>rollle 

Second Quarter 1996 
TABLE 1-B. Selected Indicators, FDIC-Insured Savings Institutions• 

. . 1996'" 199S.. 199S 

f<o1um on .... 1, (%) .......................... .................... 

Re!u1n on equity (0A) ......... 1

..

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

cor& C{4lttal {leve1,t,9e) rat,o (%) .. .......................... 

Noncu1rent clSSitb p1us t other real e.:.1at& owned to as.5,el� (%} ................... '

.

N&t charge-offs t<1 loans (%} .............. 

AssE:t nrowth rnle (o/o) . ................ .... ...................... . 

Net inlere.st u1c1rg n (�} ..................................... ..... 1 N&t OjXlrc'.\tlng income grcm1h (%) ...... .... ... ............ 

Number of in�titutions ..... .... ..... ... .. ........ .............. I rorccntage of unp101ih1.ble lnslllutlons ........... ...•...• 

Number of rrobkun tnslllUllons ................................ 

Assets of prob1&m lns1i1110ons (n billions) ............... 

Number o1 fal18<1/assisted institulioM ....................... 

1.00 

11.92 

7.87 

1.17 

0.32 

0.56 

3.22 

32.36 

1,981 

4.54 

38 

$10 

0 

0 72 0.77 

8.96 9.41 

7.70 7 80 

1.26 1.2() 

0.33 0.34 

1.83 1.70 

3 08 3.09 

17.00 13.90 

2,083 2,030 

5 52 S.8G 

c• 49 

$33 $14 

2 2 

1994 

O.li'J 

8.i8 

1.Gb 

1.�A 

0.51 

o:n 

3.�4 

7.2.2·1 

2,152 

G.97 

71 

$�9

4 

"Th1ou.gbJune ao, r;ii1loll :i.nnua it&d wl",ere ap�opriMe. Asset Qrowlh ,�1N .:uo lo, n n'lolilhs �nd ng June 30. 

1993 1902 rno, 

0.70 0.8S 0.08 

9.24 9.48 1 .?.6 

7.46 ij,77 5.b4 

2.10 3.07 3.96 

o.GS 0.59 0 GS 

-2.85 ·7.44 -11.61 

3 .48 3 40 2.76 

21.21 NIM NIM 

2,262 2 390 2.561 

S.88 7.57 18.35 

146 276 410 

$92 $183 $291 

8 81 1G3 

TABLE 11·.B· Aggtega!_<! Condition and Income Data, FDIC.Insured ��vln9.s=-ccln.c.cscc.llc.ctu°'tccloccn.c.csc...· ______ _ 

(dollar l19ures In mllffons) ' Prelimimuy 

NumbP.r r

,f in!i.lihrtions repor1ing ............................................. . 

T 04al employees (lull-tJmo oquivafcnt} .......... ....... , .. , ............... . 

CON01110N DATA 

TO!al ass.el& .......... ............... ....................... ......................... . 

LOc£t,o socurod by ,eal e!i.t�te ......... . , ................ . 

1 ·4 F.1mlly residenliat . ................ .... ............................ . 

Muhilamily residential properly .. ... ................................ . 

Comme1ciaf rei.1 �1.:.t& .. ...... ........................................ , . . 

Com;.11uetlon, dov,:,lopment �11d land ....•............ .............. 

Commercial & induslrial k>sM ..... ................. ...... ........... . 

Loan� to ndh1iduals ....................................... .............. ... . 

Oher toar,::. & le�sos ........................................................ . 

Leu: Unea1n�d l11comec & contra aooounls ...................... . 

l'o1cd loa11s & l<:ases ............ , ............................................... : 

Loss: Reserve for lo!ti:.ei. .... ..................... .......................... i

. 

Net IOOB!i. & feases ......... ........... .. ...................................... . 

Securilies. ..... .......... ..... ....................................................... . 

Other r0al G.Statc owned .................. ..................................... . 

GoodlV!II and other in1angibte� .......................................... . 

All othor assets. ............................. ........................ . 

Total li�ititltiS a11d c�lt.111 ........................................................ ·; 

Oepoofls......................................................... ... ........... : 

Other borrowed 1undi:. ......... ............. ..... .... .................... .... : 

Subordnated debl ........................ ... . ....... .......... .............. 

' 

All olh@r lisbi(i ies. ........... .... ........ . ........ .... ....................... .. 

Equil)• capital ........ ....... ..... . . .... ..... .................................... . 

Loans and Jea.ct�!t 30-89 dsy& past du& .... .................. .......... . 

Noncu1rent lo�ns W'td 11:lases .............. .................................. .. 

Reslrucfured loan& Hl1d l��oE,S ... .......................................... .. 

Olr�cl �Y.t rnd re.ct lnv&&tmonts in rP.al �l::i;te .............. .... ..... . 

Mortgage-backed !t�cu1iti@e ....•.....•. .... ................. ...... ......... 

F.a1ning ass.els. .... ............................... .................................. .. 

i-:HU5 Adv�nces (TFR liCI$ only) ........................... .. 

UnU$ed lo:lln commilmenls. ........ .... ..... . ..... . ..... ..... .. . 

Prellm1n�y 

Fll':\tHalf 

INCOME DATA 1996 

Total inl@rest income .... .......................... $3G.4CO 

Total in1er9$1 eXpe1.se. ........... ............. 21.285 

Net inlEfest inoom& .. .............................. ......... , 15,175 

1-'fovlslon for loar1 loos<:s ....................................... 1,072 

T-Otal nonintereM inoomP. ... ............................ ....... 3,032 

Total noninte.est expense .. .................. .......... 11,173 

Securities gains (losse&) . ..................................... 501 

Applical>li,, 11100111� 1.-0C:�5 .............. ......................... 2,314 

Extre.ordimuy y..-.!11s., 11et . ........................ ............ 2 

N�1 lncon,e ...................................................... , ... 5,051 

Met charge-otfs .................... ································· 1,031 

Csr.h div dends .... ................................................. 2,639 

Net ()fc.)tln lncom0 ..... ..... ..... . .......... .......... 4,6A6 

2nd Ouartor 

1996 

1,981 

25�,308 

$1,023,07'1 

G20,368 

487,154 

58,616 

50,103 

24,405 

13,439 

42;277 

2 269 

10,S99 

667,764 

7,23S 

660,510 

2'/9,GG1 

2 956 

s.15, 

71,784 

1,023,014 

727,489 

196,123 

2 405 

11,160 

85,897 

8,545 

8,916 

S,057 

637 

206,997 

958,?.00 

02,643 

97.050 

FM'i\tH3ff 

1 !Y.J!i 

$35.�19 

21,211 

14,407 

1,018 

3,101 

11,10G 

100 

1,964 

3 

3,614 

1,012 

1,680 

3,541 

1$1 QUjj;(1f?r 

1906 

2,005 

249,214 

s1.orn.�98 

609,969 

479,3011 

58,429 

49,82G 

22,411 

13,275 

41,012 

1,965 

9,500 

656.711 

7,19R 

640,513 

279,231 

3,044 

7,533 

77,076 

1,016,398 

734,761 

181,819 

2.394 

11,806 

85,G18 

6.898 

9,438 

�.567 

310 

207.902 

{150,689 

BS.917 

9S.S92 

?ndOuarter 

1996 

2,083 

25.�,059 

$1,017,338 

607,2§2 

472,982 

G2,SG9 

51,226 

2(),476 

11,707 

'38,834 

1,777 

9,700 

649,670 

7,469 

642,201 

289,371 

3,676 

6,402 

7§,687 

1,017,!)38 

744,827 

175,167 

2,5911 

11,527 

83,219 

7,899 

0,124 

6,606 

345 

216.524 

952,069 

79,37G 

79.516 

Pr<:liminary 

2nd Quarter 2nd Quarter 

o/..Chanpe 19US 1995 

2.4 $18 357 $10,226 

0.4 10.616 11,0?.fi 

5.3 7,741 7,200 

!i.3 558 520 

23.2 2,002 1,678 

0.6 5,708 S,!>38 

,99.3 161 147 

17.9 1,043 1,060 

·31.1 (3) (2) 

30.8 2,§00 1,905 

-3.8 547 589 

57.1 1.677 8'1U 

32.4 2,466 1,809 

•oat.ri tritwncin 19-q9 ;iind 1995 (IQ no1 �t(;luJo f.10�111.ltm Tn1s1 COljXlts!lon co:11:'1 \lato�hlps. Exdutlos one �ll-lh 1uda11f'l!J lnll.tlt\ltil>n, 

'"N9W reporl ng IM\1ucUor� were, Introduced In th,& f181 qua.r1e1 of 1996 thal requ ,e TFR 1 fe1e lQ ne1 specific fH&Me frcm no1'1¢t1t1enl loa1;,s. 

N<M. N�1 mearfr4'u1 

%Change 

95:2-!IG:2 

-4.S

0.5

0.6

2.2 

3 0 

-6.3 

·2.0 

19.?. 

14.8 

9 4 

27.7 

9.3 

2.8 

-3. 1 

2 g 

-3.4 

·19.6 

27.4 

-5.2 

0.6 

·2.3 

1?..0

·7.5

-3.2

3.2

-23.5 

84.7 

-4.4 

0.6 

16 G 

22.1 

%Chsnge 

9!>:2-062 

0.7 

-3.7 

7.5 

7.3 

19.3 

3.1 

9.3 

·1.6

NIM 

36.0 

-7.1 

HS.7 

36.3

FDIC Qu�rtcr y O.:inking Profil� 

Second Quarter 1996 11 FDIC-Insured Snvings lns1itulions 
TABLE 111-B. First Half 1996 FDIC-Insured Savin s Institutions

ASSQt S ?& OIS11tbu!loh Geu , .. tile l>is!t!bulion Re ion 

Less $100 M iiion $1 Bi!ion Grealer Easl West 

FIRST HALF Ptellmlnary All lhRO $100 lo lo lllan $5 Monh· Snuth· Mid· Souih-

(The way it is .•. ) I nstlto1ons Million $1 Bi lon $5 BIiion Simon eas1 eas1 Cen1ral west '11$�1 West 

Nt:r.-,her ,:,I in;lilulions rei::orling ...............• . 1.981 881 943 120 3"1 "/41 291 508 150 '31 1!:4 

Tol�I assols (in blh:in!.j, ............ .......... .... I $1,0?3.1 $.!.!:i.7 $�77.4 $245.3 $454.7 $355.2 $69 3 $171.4 $51.8 $78.3 $2�7.1 

Total daposits (In bilUons) .......................... 727.5 38.3 21tl.0 178.8 291.5 276.5 53.3 125.0 35.1 '15.8 191.S 

Ne1 inco.-ne (n millfQns} . ....................... ,, .. 5,0!i0.8 158.2 1,2�9.4 1,112.8 �.540.4 1,682.S 300.8 796.� 236.9 9Sfi.5 1,078.1 

% uf unprofllable Institutons ..................... 4.5 s.� S.7 1.7 2.7 3.2 a.4 3. 1 2.U 6.1 9.1 

% ol in.slitU!iohs with earnlng.s g�!hl:> ... 57.7 4!J.G Gl.2 81.7 83.8 56.1 53.2 55.1 68.0 58.0 72.1 

Perlormartc& Rallos {ahnuallz(WJ, 't.) 

YiP.!rl m e1'.ming 11s!".8ts ..... , ... , .... , ..•••••....... 7.73 7.01 7.76 7.83 7.64 7.63 7.98 7.7?. 7,R2 8.00 1.00 

Cos1 of lunding earning assets ................. 4.51 4 .!l3 4.34 4.42 4.68 4.16 4.51 4.63 4.77 5.00 4.67 

Net interel:>I mc,1y n .................................... 3.22 3.49 3.4:l 3.41 2.96 3.47 3.47 3.00 3.05 3.00 3.02 

Noninleresl income to esining assets ....... 0.83 0.63 o.� 0.83 0.94 OJ�I 1.32 0.90 0.94 2.01 U.62 

N"o11intor<1st expense 10 earning assets ..... 2.37 2.92 2.58 2.S4 2.00 2.36 3.10 2.:J3 2,37 2.51 2.20 

Net oper1:1.1t1u ll\f,;omt.110 �s.s&1.s .....•........... 0

.931 0.65 0.85 0.84 1.06 0.92 0.78 0.90 0.87 2.22 0.67 

Rslurn on ass&1& ..........................• ........... 1.00 0.75 0.90 0.93 1.12 0.98 0.88 0.94 0.92 2.C9 0.72 

RGtu1n on Gquity .......... .............................. ll 92j 6.79 9.16 11.2.S 15.�4 10.SS 9.37 10.41 10.n 32.13 g.97 

Ne1 charge ofls to loans Md leases .......... 0 32, 0,l)Q o. ,e 0.29 0.4,� 0.29 o .. � 0.,2 0.15 U.:J2 0.46 

lo81l los, �olflslon t::, r:et cl1c1tga-011s ...... 103.921 156.36 133.36 12.t.79 88.07 98.52 139.29 157.69 145.19 10Ui1 92.26 

CondlUon Ratios(%) 

Loss sllow.uu:e to: 

Loa11s .u,d lt.1aSE,1,S' ....... 1.08. 0.79 1.C·3 1.28 ·.o5 \.19 1.07 0.76 0,83 I.TO 1. lij 

Nono.11ran1 loans and lea.ses" ........ 73.54 1 62.82 85.46 7l.18 69.23 67.27 67.67 99.5'� 119.13 62.26 60.87 

Nor.c:.menl assels plus I 

c1t-..er real esla!e ::iwnP.d 10 as!'.P.I!.,.,, ....... 1.17 1.1)2 1.09 1,29 1.21 1,3:i 1.3l O,$ij 0.62 1.00 1.42 

NonouNsnl RE loans to RE loans ... 1.33 107 1.05 ,.so 1.39 1.69 1,9!', 0.68 0.61 1.29 1,44 

Equity cAp 111l ralo ..................................... 8.40 11.15 9.88 8.23 7.31 8.96 9.40 S.01 R.60 7.87 7.23 

COfs capital (lavertfQS) ratio ...................... 7.87 11.00 9.54 7.69 6.62 S.34 8.97 8,64 7,'JT 7.25 6.n

Gross real eslale assP.IS to gro�� as�P.ls .. 7�.8:1 72.S� 74.99 76.84 64.0a 74.71 74.46 00.83 7S.3<l 78.22 87.32 

Ci<os� 1·4 f<tinlly mon�&g&s logr. ass�ts. 4G.8C· 51.39 4G.W �1.07 49.76 43.37 45.21 51.63 .17.61 36.03 51,23 

Nel lorms RJ'\d leASes lo daposil& ............, . 9lt7S 8Cl.46 8?..27 86,07 101.4fi 76,9fi 85.61 92.81 94.06 100.66 106.08 

Growlh �ates {y.aMo-year, .,"-) 

��f:��j;ii�i.':::.·::::::::·:·:.::::::::::::::::::::::::::. \

0,56 6.15 ·10.49 2.16 -1.Y8 5."12 4.36 

3.22 7.66 -3.06 3.01 3 .52 16.74 ·9,61 

Nsl interest income .................... , .............. • 5.39 0,17 ·3.65 �.04 3.44 22.69 13.55 

Na1 lncoo10 ................................................ 

'

�9.77 17.60 ·2.60 7.61 -4.44 227.25 81.�6 

l\\:Jncu1(en1 IISSEIIS pfus 

o1h.er real P.Sll\lP. awned ........................... -8.6:l ·14,67 19.14 19.69 1.75 ·0.85 -7.10 

Nat ch&rg�offs ........... ....................... ...... •3.79 -17.28 129.23 44.50 ·14.18 106..45 ·1S.6'l 

Laan loss p.•::,•1ison, .......... ....................... 5.28 ·6.64 262.45 10.56 41.a1 2'J.08 I.G3

PRIOR FIRST HALVES" 

(Thewsyltwas ... ) 

Numbor 01 inslllullons ....................... 1995 2,�3 a46 976 126 35 7G7 319 535 1!.7 1:111 167 

.................. (993 2,314 1,C73 1,068 146 27 838 987 673 H1 160 195 

.......... , ........................... ,1991 l,684 1,251 1,209 193 �1 942 491 644 193 172 ?.42 

To1a1 assP.tS (in bil!ions} ..................... 1�S $1,011.3 $l0.'3 $282.1 $2G7.0 $419.9 $334.6 $77.4 $167.7 $S2.A $74.1 $310.7 

..... ............... ... ............. 1903 1,003.9 5'1.3 309.0 307.6 333 1 330,7 92,ll 15U.U 50.6 67.8 322.8 

......... . •........ ............ .... 1901 ,, 160.7 6' .9 347.2 :<90.4 361.4 �i6.0 132.6 163.2 50.4 63.0 365,7 

Return on asse1s (%) ........................ 1995 0.72j O.G4 0.6S 0.77 0.73 O,A7 0.HI (l,ij9 0.96 0.81 0 .39 

... .......... .... .... 1993 0.83 1.39 UlO U.97 0,60 0.01 0.91 1.08 1.09 1.91 0.41 

. .... .... ... ... ..... .... . ...........• 1891 O.U4 0,2!:I 0.11 0.07 -0.10 -0.40 0.00 o.�1 n.s� 0.45 0.1G 

Nat <.ha,g�olls lo l::,an.s & le&&es (%) 

....................................... 11:19::> 0,33 C.10 0.16 0.36 0.46 O,St:1 0.1:i 0.09 0.18 0.18 0.52 

.... ........... ............ . .1993 i O.G6 C.16 O �A u.M 1. 13 0.71 0.30 0. 13 0.14 O.:t4 1.02 

..........•....... 1991 o.a2 1 :.21 0.65 0.75 0.63 1.10 0,59 0.1!:I 0.28 0.47 0 .40 

Non:.amenl cl-S�e\.s pllJ� 

OREO to assP.ts ('%.} ............... 1995 1.2G t .02 1.11 ).45 1.27 1.66 0.99 0.50 0 §9 l.n7 1.46 

.................. 1993 2.63 1.n 2.1:i 2.04 3.05 3.32 2.10 0,tl2 1.02 3.37 3.05 

....... ... .............. H.J!-tl: 3,97 2.38 3.3 .. '1.66 4. lll �.2n 3.63 1AO 1.74 9.61 3.2" 

l:qo!t� 1.:"'l,) t;;.1 rcdlo (%) ..................... 1995 8.18 1U.40 9.43 S.2� 7.05 8,8A 8.7� 8,93 8.15 7.13 7.18 

...................... 199'.$, 7.56 8.00 8.27 7.46 6.75 7.76 7.93 8.26 7.s.5 IU\1 7.05 

....................................... 1991 5.92 7.48 6.4Y 5,53 5 .52) 6.21 566 MU 5.10 3.91 5.98 

•sagi

11oihy \\iU1 Ju11a 1g9s, TFR 6tsrs report noocurrent b:u1� l'lP.I of s1Joc!flc ,a�e1ves.-Aooo1dngly, specitic reser,,Al': h:l.VA hoon subt1c11.:��d trom io&n-!oss 

reserves, begnning wilh June t 9Y8, lo m!lke thP. m1o mer� c!ooyly comparable lo prior i:eriods. 

••oa,a bs\ween 19811 and 199� d:l not lnclud1> F::ll:l$ulullun Ttust Cor,oo,ation oonservl\lO!sh!ps, fxdudos uus �sl1-liquY.faling inslilui::m. 

FDIC-Insured Savings lnsli!ulions 12 

FDIC Qw:ut9rly oanking Pro1ilc 

Second Quarter 1996 
TABLE IV•B. Second Quarter 1996, FDIC-Insured Savinqs Institutions 

1----�"�•�••�•�s�·1z�o�D�•�U

"'

b�11""1lu�•�• -��-- • ---�Gaoy1<£phl(;. Ui.;V1l,uliuo by' Region 

Le.s.s $100Mi!!ion $1 Billion G1aa!er East ,l WP.'!,.I 

SECOND OIJARTER Prel/mln•ry I All 

I 1ns1lt111lons 

1,981 

$1 023.1 

727.5 

2 591.6 

4.4 

6?.S 

thAn $1tl0 tn to than $S Nor11i Smtth· M,d- South 

((hr, •ray it i.s, .. ) 

Numb« of institutions 1aporlin9 ... .. . 

Total �i;�P.t� {in t)illinns) ......... ................... . 

Tul<ll dl3j)OSIIS (111 bllllons) ......................... 

Na! ncome (in millions� . ..... . 

,<, of unprnli1ablP. imaiiutions ......•. ............ 

% of lnstitollons wllh M1rnin9� gl't!M ........ . 

Pertormenef) Ratios {annualim, %) 

YWlld on P.am no �ssP.ls ............................. i 

cos1 of tondlng oamll'lg assc1s .................. 1 

Nat nterest marg

i

n .................................... , 

Nnnh,1P.rc,�1 in<:nme 10 e�m r,g sssel!.,, ...•. I 

Non u!er&st 1:1>1p1::1nw lO �amlng assots ..... : 

Net operating income to a.s.sets 

Relurn on assets . .......................... -......... . 

Ralo,n on equ 1y ....................................... . 

Net chillgEt-ofr$ to loans AAd lt:t:\$flS •.. 

LociH to::;s i,rovlslcn to net charQP.·Off� •••••• 

Grovllh Rates (year.to-year.%) 

Nel h1�r�1111cu1n� ...................... ........... . 

Ne1 11cu1n1> ... .......... .......... ..................... . 

NatthcdQe-ofls .................... .................... . 

L.owi lo.s:::; prc.NiSlt.·n .......... .. 

PRIOR SECOND QUARTERS" 

(Th• w•y /1 w,i, .•• ) 

lle!urn on asse1s (%} ........................ 1Q9'5 

.................... .......... ....... 19!>' 

............................ .......... 19!}1 

Not ?tiar{IP.·ClUs 10 JoM� &. IP:HA!'i {"') 

7 72 

4.4/

3 2G

0.84 

2.40 

O.'ifl 

1.02 

12.14

0.:1:t 

Ill! .YR 

7.b1 

!'18,01 

-7.06 

7.30 

0 7G 

0,70' 

0.091 

Mllllon $1 Oillofl $::, Oill!on O!llion cas1 ens, Contral wo:.l 1,1,�1 WEts1 

�!j,i 

S?Y'l.1 

J91.S 

562 5 

M 

891 943 120 37 741 207 508 150 fa, 

$-15.7 $277A $245.3 $454.7 $955.2 $69.3 $171.'I $GUI $7H a 

�tH a 

88.4 

5.6 

58.l

7.83 

4,29 

3 .53 

0.69 

::!.!�ti 

0.70 

0 78 

7.04 

0,11 

146,!tS 

0.5G 

s. 13 

0.30 

:o "1,n 1 7H.H ?.91.!i :a6.5 sa.:; it!6,0 a�A 4�.a 

633.o �so:, 1,31s.1 a8o., 1s1.1 4t2 4 120.a 1155A 

3.6 2.5 2.7 9.2 BA 3.1 2.0 �-" 

Sil.$ 

7.78 

4.a, 

3.47 

0.79 

2.6<) 

0 !)2 

0.92 

9.3ti 

O tY 

14fi,!:f.4 

0 7G 

0.96 

·0.0!:> 

7$.S 

7.06 

4,.411 

�AG 

.:. 01 .. 

2.�;.i 

C·.87 

0.91 

11.03 

U.30 

110,!i� 

o.e1

ll.f!S 

ll.ll\' 

8L1 5tJ 6 57 .9 65.? 6.K.(I 00.3 73A 

7.60 7.66 8 04 7 .71 

4.fi2 4. l!'i 4.46 4 . .)6 

2 !J8 3.51 3.55 3 13 

0.97 0.68 1.� 1.()4 

2. 12 2,30 3.20 2,3G

1.08 099 0.78 0 97 

1.16 1 .02 o is. o97 

15.06 1 \.33 9.39 10.73 

0 46 U.3:? U J4 U, 13 

HtUtd. 10�;(/ 14R,14 14/,M 

0.74 

0.?6 

0.23 

:\,t,9 •(l,(t\ �-69 

z.uo (1.14 ::!.�\ 

-1�.9, c.w.oa �4.42 

5.71 25-3.20 -13.10 

0 67 

0.7H 

�l.t.l 

0.79 

11,A..Q 

.0.22 

0.116 

1.14 

o.eG 

'/,HI 

4.73 

3.08 

U.H� 

2.35 

0 87 

0 93 

10.83 

0.1'5 

140.68 

/.93 

'1.93 

3,011 

1.37 

2 S2 

?,UH 

2.33 

29.86 

0.40 

81.8G 

7.66 

il.6 ) 

:�.{IR 

O.G5 

2.22 

o.n 

0.75 

�0.ill 

0.46 

8G.28 

5.63 22 17 13 57 

2.21; 193.06 55.72 

61.94 137.42 -2-1.11 

5.91 18.112 ·S.05 

0.90 

0.91 

0.59 

O.M

1.44 

0.00

1:.4; 

C.1C• 

o.ca

....... ............ .......... ....... 1995 I

0.36 0,2'/ 0.18 U.39 0.49 0.40 0.19 0.09 0.11 0.19 O.!i9 

:::::: :::::::::::: :::::::::: :::::::�:� �:��. � ;.� �:�! �:�� �:;�. -i,'�:,;

�=-;�="�"i:;"�'=��"':"-��c.'---"�"':�"�---'�"':�"!'--"'�:-"�-'-

•oa1e bs!V1een 1999 end 19d5 00 not inc utJa Ra:.olutlon Trus1 Curpori.;.1011 cum;erv;,,lun:;hfp.s. Excltu.l&s 011& $alf-llquldi.;.1 hg nl:>li11Jlioh. 

REGIONS: Northeeet-ceme.ciiOJI, O!i9wate., a,lrid f/CCl1n11li;1,M;:ln�.M.tyl.l•w;t.f,IMQ:'hu;cc;, Naw Halrpffi18 New JEC'&ly, N;wVa.'k. P«lr�l'- t-u;m �co, Hton ISla."<I. 

Vo11t1cnl, U.S. Vil!in t:Jml• 

Soutt11Mst N,ibilfl!.i, AQl'i�. Gvo1��. Ml;sl$Slppl, Konh C&rolha, SoulnCeroona.. Tennetv.e, v;,gr11a. Wffl: Vi{l;l'lla 

cenr.--l-llinol$, lnd Ol'a, Ktlf(uci<.y, Ml:ligrtl. OHo, w1,cooon 

MJc1we91-· lcm.i, Km,,n. Mr,nG,;OIR, MIS$0Ut N;brsBk8, North 06kcttl, Srulh Oa'lleta 

Souttni,�.s:t -· Alk.vmu, loi:l;inro, HEJ\'1 M(«ICO. Oldar.oma. 1 E«U we,t--Al;).:;k.i.Mt�. Cil.lilomia., CciotaOO, Hawei, daho. IAMIBnB. Ne!hlc&, o,�:o. r.ac 11c ISIUI03, Utal"o, WUhlrglOn, Wyoll'il'lg 

FO C Ouarte1ly Banking Profilo 

Socond Quarter 1996 13 FDIC-tr,sured Savingt: lnstitutiorn� 
TABLE V-B. Loan Perlorma_nc�, FDIC-Insured Savings ln.�s:.:l.::il:=Ul.::i ::::O:.:n::::s ___ _ 

Jun• 30, 1996 

Pe1cent of loaM SO-SQ Days Pas I Due 

NI bans secured by rP.BI P.Jt\Bta., .. , ....................... .. 

Con1truction, develo1jment end rand .................... . 

Conmercial re.al estate ........... ..... ....................... ' 

Mu!lifamil>

· 

residan!i.al ,ea: es:ate...... . .... , 

1-4 Fatnily resid9ntial.. .•........•.........• ..........•......... ' 

Comrmrcie

l 

er.d :O::luJttflsl loens ........ ..... ..... .. .... . 

loans to indivduals ......•.....•.......

Percent ol L<>ans Nonourrenr 

Alt rt:aJ e.stato IOwlS ................................... .. 

con�t111cnon, development and land .................... . 

Co1nrnc1cial reaJ $$!ale ....... .................•............ 

Mu tir..1.1nily res

i

dential re..11 eslals .. ....... ..... ...... .. 

t•4 F.-.mHy 1es,i::lential.. ...... .. .. ..... . ................... . 

Commercia

l 

and industrial loans.. ........................... .

Loar,s 10 n:div.dual5. . .. ..... ..... .... ........ ............. ... .

f'4rctnt of Loans Chuged-oU 

{ntt, anm.1l'l

l l

t•C:C) 

Al

l �al t:::;l-1.le lonn� ................................................ .

Con:.:11l1¢1i

ou, <.lcvcl<>f)mer1l 111'4 itnd ..................... r

G01'f'l1n�r¢l•d r�I l!sl.tl¢ ........................................ . 

MvH b,mll)' re:�ldef11i�I r�W t!.<:t�tt: .......................... :

1-4 Famly 1esidsnliat. ....... ........ .... ....... . 

Com�rcial and in::lusuial loan.s ................ . 

Loans lo ndividuals ...................... ,_

loans OU19tanding (in b ltions)

/\II rea

l &.sU�te ben.s ... ..... ....... . 

Conslruttion, developnsnt and land .. 

Comme1cisl reaf eslels ....................................... .. 

Multifamily re�idenli

el real estate ................... ,.,, .. , 

1·4 Farnily re�i::lsntia1, .... , ................ .................... . 

r.onvnerdal and indu�1risl hen!.., ........................... . 

Lo,u�.<t 10 indivktuat� ... ........................ ................... ; 

tAemorand:,: 

Other l=tul £state Ownfd (In mllllons)O 

All 

lnsllh.!lfOns 

1.21 

1,08 

1.11 

0 63 

LSO 

1.:r1 

t.llSI

1.33 

1.18 

2.31 

1.59 

1.20 

1.94 

0 92 

0.28 

0.10 

0.45 

(),51 

0.18 

0 :39 

1.50 

$620.4 

24.4 

so.2 

5M 

<a7.2 

13."1 

42.a

l.o.­

than $100 

Mllion 

1.93 

1.39 

1.81 

L39 

2.01 

?..JH 

,.4· r 

·.37

� 99 

•.?8 

1..ig 

c.�il

2.7i:I 

I.I/ 

0.0$ 

0.14 

0.1, 

0.22 

IJ.U� 

uo 

0.3tl 

$19.') 

, .. 

,.� 

t,•' 

24,j 

c.s 

1.S

A!se1 Sze Oi&lribut on 

$100Mil! on SI Billion 

to 

$1 B llion 

1.23 

1.12 

1,19 

O.tif>

1.28 

2.05 

<'.0:l 

1.05 

1.25 

uu 

1.i6 

O.tf/

3 0A 

0,90 

<US 

0.1G 

0.3G 

0.42 

0.0tl 

o.n

0,'70 

$110,9 

10,8 

17.7 

11.2 

131.2 

4.3 

10 � 

lo 

SS Bllion 

1.10 

1.93 

1.16 

0.51 

1.17 

1.30 

2.27 

1.GO 

1.63 

3.7,3 

?..33

l.?.4

·1.81

O.ft3

0.18 

0.02 

O.S2 

0.97 

0,11 

0,31 

1.� 

$140-5 

6.3 

lb.$ 

16.5 

102.6 

4.6 

12.3 

(.;...,ograp.

'

ic 0 s:11bu(1on b Re 0n

Go�:t1P.r EM1 Wes.t 

than$� Soulh MIO- SoulhB Hioo_ t-ast G1Jn11i'\I wesl 11$t1 

1.18 

0.61 

0.09 . 

0.58 

1.29 

0.49 

!,73 

1.S'iil 

0.74

1.cn 

1.20

1.40 

0.71 

0.92

0 .33: 

0.041 

0.62 

CJ.63 

0.28 

·0-03 

2.09 

$279.6 

5.5 

1'1.9 

29.9 

229.9 

3.9 

17.8 

1.26 

0.79 

1.94 

0.81 

1.90 

vu 

2.00 

1,f,Q 

;!,1)3 

3.35 

\,97 

1.42 

2.�1 

1.01

0 .22 

0.14 

0.6:l 

0.39 

0.15 

0.47 

1.30 

$1S5.8 

,.s 

21.0 

14.2 

JS!.S 

6.8 

13.3 

1.43 

1.31 

S.17 

0.82 

1.50 

1.8� 

2.74

1.0:.' 

1.41 

S.26 

0.'18 

1.02 

,. .. 

2.18 

l.3S 0 68

0.79 0.92 

1.14 1.77 

1.87 1.25 

1."13 0.54 

2 75 1.51 

1.19 1.19 

0.05 0.04 

0,05 0.01 

0, 1ft 0.17 

o.oo o.oo

0.09 0.09 

O.GO 0.30 

2.86 1.14 

$-12.3 $108.tl 

'1.7 S.4

4.0 A,O 

1.2 7.:>. 

s2., 90.1 

1.1 1:r 

4.4 6.0 

1.2;,-

1.22 

0.9� 

0 81 

1.3?. 

2.00 

1. :�8 

0.61 

0.66 

1.23 

1.06 

0.53 

1. ('/ 

0,80 

0.02 

0.13 

-0.01 

0.041 

0.01 

!>.34 

1.19 

s•o.o 

1.4 

2.2 

1.3 

25.1 

0.7 

3.4 

1.20 

0.65 

0.57 

o.�,

,.ss 

f.06 

1.07 

1.29 

0.:J4 

1.46 

2.13 

1.27 

1,40 

0.59 

0 20 

0.04 

0.32 

0 03 

o.n 

0.4t 

1.01 

$41.9 

3.7 

... 

4.3 

29.9 

0 0 

S.7 

1.20 

1.M

0.84

0.57

1.35 

0.76 

1.81 

,.44 

•.28 

1.69 

1.44 

1.42 

0..46 

O.G!> 

0.41 

0.23 

o.so

0.'16

0.34

0.02

2.10

�202.1 

4.G 

12.6 

30.6 

15'1.4 

2.3 

6.4 

AJI olhut r�I uslulO uvlt'ttd .................................... . 

Coost1uctbn. dsv&lopin'1n1 a116 lantJ ........... . 

$2 055.9 

6"1.7 

69G.G 

470.8 

i1 v .. 3 

23.G 

,t.t.g 

G a 

so., 

$826.2 

260.4 

250.7 

100.8 

283.2 

S7l7.o 

86.3 

241.�

154,4 

29W 

$1,2YR,4 

261.4 

159.$ 

208.7 

871.$ 

$>,060.7 

219.7 

350.8 

110.6 

o\S0.4 

$25S.7 $151.3 

241.� 11.0 

195.C 

11.� 

48.'

/ 

16.9 

S4.6 

$205.2 $1,164.9 

�s.o 121.2 

Ccmmercial real esta.ls ........................................ . 

Mt.ltifamily l'e*:iden!ial real es�!.e .. ...... ................ . 

1-.4 Famly residen�al. ..... ..... . .............. .. 

TtoulHetl Rear E'$1ate As.Ht Rates-· 

(•lo ol total RE assets) 

1.4�.o 

s� c 57.8 

3.8 13.7 

73.5 lij.7 

AH 1ea1 ssta.te roans ... .............. , ............. ,................ 1.eo 1 1.4� f.52 2. 10 1.85 2.23 1.94 o.81 

Cone1ructlon, dewlopmsntsn::1,and.... ................ 3.70 2.24 3.57 2.86 5.34·1 '1.06 5.59 f.f2

Corr,

;n&t'(ktl fetal �statEI .............

............................ \

S.64 3.6� :l

.28 4,74 2,95 5.00 2.09 2.71 

Mu!Ut;,mll)'tosldenl�l,oi'destalo.......................... 2.S8 2.1S 2.d4 3,24 1.66 2.79. 2.18 1..44 

1-4 F.a.thnyre.�ldt:ntllll,........................................... 1.s1 1.2c 1.ot1 1.�2 1,77 1.69 t.66 0.6$ 

"NoMOUire,n iot1.o fatH rtprt.s,;nt tl10 p,ercontag& of loans in each cawi"ory �ha1 a,s pa.st due 90 dayt1 or moffl 01 lh<1.l n10 in nonaccrual 

&latus. 

"'TfR t loC5 1op<,11 ·An o111or roru esUle owned* ne� ofvalualion allowances, while indi\•idt.J&I e.a,IP.9nrfet. ot UR(O a1e repor!ed gross.

�••Nonc111rent real os�l.8 lo11n.s plus olhsr rea

l 

est:ale O'((ned es a percent 01101st real estl\lP. 1011M pll1s ORE.O.

Insurance Fund Reserve Ratios 

Percent of Insured Deposits 

0.93 

1.(5 

3.37 

?..3� 

.. 

0.67

�4.5 156.0 

45.6 27f.O 

108.( 772.3 

1.76 

1.23 

2.24 

3.24 

1.63 

2.00 

3.84 

2.84 

2.90 

1.91 

._

,

.

1 ..... Tllrge> Ratio ur. 1.!'!1 IX' 

Fund Balance and Insured Depos(ts• 

(t 14111008} 

0.10 

:ISAIF 

a91F 

FDIC-Insured Savings Jnstilulions 

:u;s 

"' 

Cf• , • 

14 

12189 

12/llO 

12/U1 

12192 

12.'93 

12,'id 

12''95 

3196 

e.'!Js 

BIF Fund 

Balance 

13,210 

4,04$ 

-7.028 

-101

13,12i 

21,848 

25,454 

?$,748 

2�.828 

BJF-lnsure::I SA F Fund

0 cpos its Sa lance 

umi,031 0 

1,929,612 •• 

,.�7.722 ,o, 

1,945,550 279 

t,9C5,279 1,151 

1,81:15,19'l 1,937 

1,951,736 3,358 

1,959A70 3.6SO 

t ,958378 3.914 

SAIF-lnsured 

Oe;,osite 

882.�0 

830.�8 

776,331 

732, 1!i9 

697,6C8 

893,<42A 

712,"133 

716,2.11 

713 <42!i 

• 1-111,rc:1 OcpOS1t Amouns:; At<l EJ.1'11<1110$ '

FDIC Ou:l.rlerly Banking Pr<1file 

Second Quarter 1996 
ALL FDIC-INSURED INSTITUTIONS 

• BIF-lnsured Deposits Dip Slightly; Reserve Ratio Rises To 1.32 Percent

• SAIF·lnsured Deposits Fall $3 Billion; Reserve Ratio Climbs To 0.55 Percent

• Two BIF Members And No SAIF Members Fail In The Second Quarter

Toe total asse1s of all FDIC·insured institutions increased 

by $95 b llion in the quarter ending June 30, 1996. This

increase occurred primar ly in members of the Bank In·

surance Fund (Bl F), as the assets reported by members 

of the Savings Association Insurance Fund (SAIF) re· 

mained virtually unchanged. The number of insured insti· 

tutions fell by 173 during the second quarter, to 11,670, 

wilh the number of BIF members falling below 10,000 for 

the first time in the FDIC's history. 

BIF members increased their reliance on uninsured de· 

posits in the second quarter. Their total 

deposits climbed

$37.7 billion during the three-month period, includ ng

increases of $7.6 billion in foreign·office deposits and 

$31.2 billion in large, uninsured domeslic deposits. As a 

result, deposils insured by the BIF fell slightly, by $1.1 

bill ion. This decline. in combination with modest growth of 

the BIF, caused the fund's reserve ratio to increase by 

one basis point, from 1.31 percent on March 31 to 1.32 

percent on June 30. 

SAIF·insured deposils also declined during the seoond 

quarter, by nearly $3 billion. With the fund growing to $3.9 

bill ion, the reserve ratio of the SAIF rose 4 basis points, 

to 0.55 percent on June 30. The decline in SAIF deposits 

is attributab e to the continuing "migration• of deposits

from SAIF insurance to BIF insurance. Because SAIF 

insurance premiums are now signilicantly higher than BlF 

premiums, 1 organizations that own both BIF and SAlF 

affiliates have an incentive to reduce their deposit insurance premiums by encouraging their customers to shift 

depos ts from a SAIF affiliate to a BIF affiliate. One such

organization has reduced its SAi F deposits by more than 

$9 billion in this manner, including the shift ng of $3 billion

during the second quarter. In the absence of legislation 

that would enable the equalization of premiums, other 

thrift organizations are seeking to establish or acquire 

BIF-member affiliates. Federal regulatory agencies 

recently approved several of these applications. 

Two BIF-member commercial banks, with total assets of 

$104 million, failed during the second quarter, raising the 

total 

BIF failures for the first half of 1996 to three, with

failed assets of $139 m llion. No SAIF member failed

during the first half of 1996, but one of the BIF members 

that failed during the second quarter was an "Oakar" bank 

(see below)that held some SAIF·insured deposits. There· 

fore, the SAIF became liable for a portion of the estimated 

insurance toss for this bank, which is allocated according 

to the proportion of the bank's deposits insured by each 

fund. 

1The average SAF assossment rato is 23.4 cants por $i00of assessDblc

deposits, based on a range of 23 to 31 cents. The average BIF rate is 

0.3 cents per $100, based on a rttnge ot O to 27 cents, subiet,1 to a 

minimum annual assessment of $2,000. 

FDIC Quarterly Banking Profilo 

Second Quarter 1996 15 

"Dakar" deposit$. A member of one insurance fund can 

acquire deposits insured by the other fund, but this portion 

of the acquiring institution's deposits retains coverage 

under the seller's fund. BIF members acquired an addi· 

tional $7 billion in SAIF·assessable deposits during the 

seoond quarter of 1996, raising their total SAIF-assessable deposits as of June 30 to $238 billion, or 32.4 percent 

of the SAi F assessment base. A year earlier, BIF-member 

Oakar deposits were $205 billion, or 28.0 percent to the 

total SAIF assessment base. Aso, SAIF members may

acquire BIF-assessable deposits, and as of June 30 they 

held $12.3 billion in such deposits, or 0.5 percent of the 

BIF assessment base. 

"Sasser" institutions. Institut ons are generally prohib·

ited from oonverting their membership from one insurance 

fund to the other. Since 1989, however, SAIF-member 

savings associations have been permitted to conven their 

charter to that of a savings or commercial bank while 

retaining SAIF membership. Converted institutions leave 

OTS supervision and become subject to supervision by 

one of the three federal banking agencies. As of June 30, 

1996, there were 312 SAIF-member institutions that had 

converted to bank charters, including 229 state•chartered 

savings banks and 83 commercial banks. These 312 

institutions he d SAIF-assessable deposits of $54.2 bil·

lion, or 7.4 percent of the total SAlF assessment base. 

Federal legis ation enacted on August 20, 1996, forgives

thrifts' deferred tax liability on their bad·debt reserves 

established prior to 1988. For many thr fts, this signifi·

cantly reduces the potential cost of becoming a bank, and 

an increase in Sasser conversions can be expected, 

particularly among those thrifts that are pursuing strategies to diversify their mortgage-dominated investment 

portfolios. 

FICO bonds. The F nancing Corporat on (FICO) has a

first claim on up to $793 million of SAIF assessment 

revenue each year in order to fund interest payments on 

FICO bonds. These 30-year bonds, issued in the years 

1987 through 1989, were sold to fund losses incurred by 

the now-defunct Federal Savings and Loan Insurance 

Corporation. Assessments only from SAIF-member savings associations are available to the FICO, which excludes SAlF assessments paid by BIF-member Oakars 

and SAIF-member Sassers. At the current SAIF assessment rates, an assessment base of $333.3 billion is 

required to generate the FICO assessment. The FICO· 

available base has been shr nking steadily since the SAIF

was created in 1989, and on June 30 it was $443. 7 billion, 

or $t 10 billion above the required base. On March 31, this 

"cushion" was $118 billion. 

All FDIC-Insured Institutions 
' 

Estimated FDIC-Insured Deposits by Fund Membership and Type of lns!ltu!lon 

June 30, 1996' 

(dollsr flgurH in millions) Numb8!o1 Tolel 

lnstit1.1:ionr. As!:91S 

Ptlvat .. sector comrnercra1 and savJngs fnttltutl<>ns 

FOIC-lnsurad Comme•cial Banks ....... .......................... 9,689 -1,3"s,e-16 

BIF·mc':'!ter ............................... .......... ........................... 9,606 , 4,371,478 

SAIF-,;-:orn:,or .............. .......... ..................... .......... ........ e:i 25,366 

FOIC-ln�ured Savings lns11tu11ot,s ... ... .. ...... ...................... 1,9!:jl 1,02$,l}]L 

OT8-Super..

ls1XJ s�vlngs lr,S111u lon$ ............................... 1.�\3'/ 766,159 

BIF-memt:ar ............. .............. ................ .......... ........ 27 103,614 

SAll7 morr'oe·· ............................................................... 1.:-,10 ee,,s4s 

FDIC-Supervised State Savings Banks ............................ 5,.q4 264,QHi 

l:)IF-111e1nbar ...•......... ............... ..... . .............................. 3�� 203,ij57 

SA.IF-merr.be.-... , ....... .... ..... ........... ..... ........ , ............. 229 61,oee 

Tota.I Private .. Se<:tor Commercial •nd 

Savln95 thstl1utlons ........................................................ 11.e10 5,,19,920 

; Oorn&s'.ic 

. 

! Jepc!iilrt�. 

2 5S9,3B4 

2,581,440 

17,944 

n7,4!001 

529.�41 

G9,52Q 

460,11? . 

197,8"8 

15a,924 

39,924 

M2Mn 

_ l;!:i!'l_cJ,sd ·n�u!.ed Dee?s !s __ 

RIF f Sl\1::-f Tolol 

1,783,799 196,275 1,980,074 

1,782,324 i 182,212 1,96!:,642 

1,474 1:t,OS7 '4,M2 

11:::,2:tlj S17,150 E::<'9,M8 

�7.914 4ij4,4�2 so2,:i,e 

27,549 39,359 G6.!J07 

10,560 4?5,C7:l 4Sf>,439 

. 

134,322 I52,718 187,C4:2. 

13:J,tu:>g 15,911 149,801} 

434 I 36,807 37,241 

' 

1,956,0$6 713,<25 2€69,46?, 

I 

' 

91F�ember .. ..... .............. ......................... ......... ...... ..... 9.gea 4,678,949 2,800,893 1,043,762 230.489 2,162.250 I 

SAIF·member .................. ................. ·· ········· ····················· 1,682 740,972 516,981 12,27'1 471.937 1,87,212 

---

Other FOIC,fn9ured fnetitutiona 

U S. BrancrlllS of Fcroior Bmks ..................... ................... �� 12 •• 1�5 3,M?::: I ?,341 0 2,341 

-- I Tolal FO(C-fnsured lnslllutlons ....................... .......... ......... 11.703 5,432.315 3.330.406 I • .. 05-9.318 11f42s- 2 671,t1C$ 

·Excludes cne ulf-lquda11na savir,gs lnslih .. tion With less lha•1 $1 m111!on In �IF-Insured d�pcslls. 

··F.�•udes $462.0 billicn in fa<eign ctfice depos;1s, which ere unin�ured. 

$ Billions 

SAIF Assessment Base 

December 31, 1989 • June 30, 1996 

1000 � -------------------� 

333 

0 

(S BilllOl'IS) 12189 

Ss.sse.• h81it.ili¢1lS Oal<al" 0/J 

ue�s118 ll:llt-�.amoen;) 2.1 

ATC Con;erva101&hpe 89.0 

A Otle1 l�:IUIIOM 851.6 

T91al s•2.a 

All FDIC-Insured Institutions 

12'90 

2.$ 

:14.0 

67.:J 

768.0 

870.0 

ATC Conseiva1orshlps 

12191 12:92 1219) 

11 9 28,4 42.8 

.... 80,5 139.8 

3B9 :31.:? 17.7 

693,2 81!'i.2 520.9 

811.7 755.!j 720.7 

16 

Sasser Institutions 

12194 12195 3196 

$2.0 00.2 56.S 

181.7 220.9 231.3 

12 o.o 0.0 

479.2 4500 -ISi.i 

714.1 ns.6 738.9 

6196 

!>4.2 

238.S 

0.0 

44!U 

73�.4 

FOIC Ouanarly Banking Prolile 

Second Quarter 1996 
TABLE J.C. Selected Indicators, All FDIC-Insured Institutions' 

(doiiU11gU�$ fn mllffnns) 1996·· -'lc,9,:95,c'_' __ _,i,c99e,S,__ 199" ,_4,_ __ ,,.,ii9=3_----::-1 on

Number o1 ln:.tltUIIOn$ rcpc>1tlng ....................... .... ........ . 11,670 

$M19,020 

3,788,905 

13( 

$18 

3 

12,252 11,970 f2,G03 13,220 1'3.852 

T cital MSffl,,,,., ......... ,., ... ................ . $5,180.101 $5.��8,322 $5.01�,0R6 $4,7Cl7,Cl55 $4,535,878 

Total dt,p,0SIIS ............................. , ................. . , 3 65Ul93 3,769.477 3,611,619 :J.�28.486 :i,S27.034 

Nqmt>r.

r ot prohlem in$li!ulions ..... ... . 254 1S'I :l1A 57?. 1,063 

Assets of ptolJlaru 111:.llluUc>ns {In blllion�} ...................... .. $56 $31 $73 $33• $502 

Nu1111.>ur c>1 fall0cl/l\Mi!t(fH'l ins.l�utions .. 6 8 15 50 1•1 

As�I!'. of faifedlessisled institulioh:;; {lo bllllor'!}. .. ; ......... .. $0.t< $0.98 __ j ' ·��"-1 ___ $,c1"'.5"7 __ _:,$,c9·e,6,_ 7 __ _,$,,,8,._8 

•• A., ot Jone 30. 

TABLE 11.C. Amiregale Condition and Income Data, All FDIC-Insured Institutions' 

(dollar llgu1et In mllll<mst) Prg1!11ll11c:1.ry -----

N11mbnr ()f in�1h11tions r�r1ing ........ .................................. . 

Tol3 employeeo (rull-tlm� 1:1qulvcden1) ........... ....................... . 

CONDITION OAT A 

T<>t.31 a$$-P.I� •.. , .. ,, ...

•... , ........... ........................................ . 

I OR.OS 6ecu,ed by «:IHI 4::1l>lcl1e ..... ... . . 

1 ·4 Family u•1r,icfP.nli::lL ............. . 

Hom� equ

i

1y oans .................. ......... ................. ..... . 

Mull!f amHy ,1:1::.ld,,mOal p,open)' .................................... .. 

Commercial re;il 1)$1ato .................... .............. , ... , .......... . 

CoMtrur:tion, (tfwelnpment and lend 

Olher real 4::l�l�t� lo�n$ ... ........ .................................... . 

Comm$rci al & nch.1�lri-'l l�anr. ............. , ................ .... ...... . 

Loans to individu:llls .. .... , ......•.. .. .... , ....... ................. ...... . 

Credi1 ca1ds & related i,lau::. ........... ............................. . . 

Oll1ar loi;ius & tca$CS, ...... ................ . .......... ...... , ... , .... ,.. .

I .ess: Unearned income & t:0n1ra aooounts .... ................ .. 

Total loans & aas<1s ............................. ................. , .. , ... , .... . 

toss

: 

A�sP.rve 1or osses ... ... ... ........ . .•............. ... 

Net loans & l &a::.es ... ................................ ............... . ........ . 

SccuritOOs ........................ .................. , ............... ............ .... . 

Olher real e�tclte <IWlled ...... .................................. . .. ........ . 

Good\\'111 and othflll' nttng

i

b1es..... . .. . .......... .... .. . 

All other asset& . .......... ..... ... , . ....................... .. 

Total liabilltl� Mr1 ('Jtf)it/\1.., ............ .. . 

lJe�os11s . ........ ..... ....... .......... .... ..................... , .... . 

Other borrowP.d f11ncfa ............ ........... . 

Suhordinsted deb1 ... ... ........ .... ........... ... .. ....................... . 

All other llabilltles ..... ....... .................................................... . 

Gqully caplal ..... ..... ............ ...... , ......... .

Loans and IM.r.� 30-89 days past due ... . 

Nonc11rren1 oans cllld INs1:1t. .... ............................................ .. 

Ras1tuc1u1()d loans and IM�'*I .. , .................. , .. 

Oir�r:t ::ind indrect inveslments In teal �sta1a ....... ............... .. 

Mortg�11e-backcd $OC.UriliP.!'t .................... , .. .. . 

E::1.rnin9 assels ...... ........... ... . ..... .••.••••.••..•••• 

Unused loan com111Hrn�1ts ... . ... ....... ................................... . 

Including ATC con,ervtttof'9hlps: 1,nd IBA's: 

2nd Q,1al1Br 

1996 

H,trto 

1,7?.9,S?.6 

$S,419,920 

1.7?.�.647 

1,121,733 

98 781 

96,095 

356,974 

96,038 

52,S08 

698,853 

:,'/9,764 

219,311 

371,920 

16,?29 

3,357,961 

ti0,RC1S 

3,297 156 

1,086.146 

8,30-1 

50.963 

977,3S?. 

S,419.920 

3,788,905 

8U6,543 

so.no 

2,13,422 

450,831 

42,288 

39,133 

8,629 

1.210 

539,878 

4,765,724 

2,431,369 

1MQ11ar1er 

199G 

I 1,H4a 

1,707,660 

$5.�4.628 

1,699,399 

1.10�.086 

95,717 

95,532 

3tl0,968 

92,053 

51,761 

689,225 

S6!;,304 

211,629 

349,987 

15,114 

3,288,802 

60,145 

3,228,G5G 

1,090,901 

8.874 

39,194 

957,009 

5,3?.4,6l6 

3, /60,t-Ze 

839,186 

47,820 

238,039 

439,0S4 

43,201 

40,487 

9,2$0 

887 

54.1,138 

4,709,1143 

2,339.214 

2nd Qusrter 

1�95 

1:>,?5? 

1 732,762 

$S, 188,107 

1 657,257 

1 ()A0.4�t 

96,807 

9G,OG8 

a4:1ms 

86,979 

S0,714 

�51,75� 

541,723 

200,2G2 

:<13,264 

15,911 

3 14",088 

60,407 

3 0R7,6�1 

1 095,291 

11,(127 

93,289 

960 824 

5 188,107 

3,651 993 

823 088 

44,799 

2!i0,?29 

417,998 

3G,570 

40,786 

12,07:l 

919 

536 544 

4.554,765 

2,065 A26 

Estimated BIF·i�ureddP.flor.itr. ............. ,........ ..................... 1,958,378 1.959,470 1,913 598 

Assessmeht bcl.S� . ............................. .......................... ,,.. 2,499,759 2,472,690 2,382 906 

BIF ba ance (unauditcr.l l gure.,,}....... .. . ................... .. ... 25,828 25.748 24,677 

OIFr�SfHYP. ralin (%)''·... ............................. ....... 1.32 1.31 1.29 

Ei:ttimaled SAIF·Mu1'9d daμosits... ..................................... 719,425 716,27\ 710 272 

%Change 

95:2-96:2 

4.8

-0.2

4,5

4.0 

9,8 

2 0 

0 0 

4.1 

10.4

4.1 

7.2 

7.0 

9.6 

fB,7

2.0

fi.7

0.7 

fi,8 

-0 8 

-?.4.7 

53.1 

1.7 

4.5 

9 .8 

7 .1 

12.1 

-2 7 

7 9 

16.6 

-4,1 

-28 5 

31.6 

O.G 

4.6 

17,7

2.3 

4.7 

4.7 

2.� 

0.4 

As�as6trl4::lh1 baso. ............................................................ 736,405 7:itl,917 732 S 18 0.5 

SAIF OOlanoe (11na11di1P.rl figures)., ................. ................. 3,914 S,650 2 587 !i1,3 

SAIF resyrvgrallo (o/o)".................................................... 0.55 0,51 0.36 50.6 

t$tlmat&d FOIC-in�urP.<1 f'IP.pOsit�._BIF and SAle.�,;.··===-'-- --'2"',6"7-'1,;;,8;:;0::....� - 2 675,741 ��_.:2,,,c6,,23,o,8=10:_ ____ -" 1,8. 

Preliminary -

· Prellminary 

First Han First Hall ?.nd Quar1er 211d Quartet 

JNCOMEOATA 1996 1995 %Change 1996 1995 

l'otal lhterestlncomo ....... .............................. ..... $189.613 $t83,647 3.9 $95,554 $93,813 

Total ln1erer..t �xpenne............ . .. : 95,109 93,071 2.2 47,403 4R,219 

Nat inleres1 incoma ............ . ..... ........................ ! 94,504 90,47G 4.5 ..fA, 151 45,595 

l,Jro\li:siontorloan lossos ................................ , . .... I 8,872 6,612 34,2 4,786 3,431 

Total nonintereM inoomA.... ...... . ....... .... ... ........ 49,tl04 42,504 17.2 201162 21,841 

Tolal Mnlnterest expense .......... ....................... ,... 90,144 86,62� 5,3 45,011 43,032 

Securit esgainr.(lo66EG) ............. .......... ............. 1

.

os� 411 156 2 239 502 

Applicabto3 lncortti.ttaxt:1�.. ..................................... 15,868 14,441 9.9 8,393 7,569 

8'1raon:IMI)' gains, net .......................... ......... ,.. 92 26 ?.47 .7 21 (12) 

%ChaOQO 

--9S:2-96:2 

1.9

-

-1.7 

5.6 

39.5 

19.7 

4.6 

-62.3 

10.9 

NIM

Net 17.9 income.. . .... .................. ....... ..... ..... . ..... ..... 30 569 26 741 14 3 16,373 13 89S 

·Ex<:lu:1M n6:illtk>n$ in RTC. r.en,;D:Ya orsh!p, ffllt sell-llquijafir4 awing, l16lllullon, lni:111.d bflllr,tllH 011oreig:i Mnk8118A·,). univ.;. iOO:Ca!lfd olt,ftnvis•, 

... 11868rve 1eboo tef!a::l thq ;,,::�1t.ihct und balance Ha pe1<:er,!a9a :>I es!!malad in:;"·•ct dopeir.n�. N<'M-N:t mNl'ingh,I 

FD C Quarterly Banking Profile

Second Quarter 1996 17 All FDIC-Insured lnstitulions 
TABLE 1-D. Selected Indicators, BIF-Member Depository lnslitutions'

{dollar figures in mil/Ions) 

·· .-__ .:.19:c.:9:..:Gc..'' __ 

-

'-1:c.:99:c.:5c..'· ___ ..

1:.::99::;:_ 5 ___ 1:..:9:.::9.:.4 ___ .:.:19::9:.::3c.... __ ...:.:199=2c.. 

Nurnher of ins1itutlons re.porting...................................... 9,988 

Total assets ......•..•...•.....•..........•...................................... . $4,678,948 

Total deposi1s.............. ................................................... 3,271,865 

Number of problom inslilulions ........................................ l 103 

Asse1s ol problem ihsllluUons (h billions) ........................ 

· $11 

Number nf failedla:;sisted institutions.............................. J 

Assets of faicdl.:issistod institutions Qn billions).............. $0.14 

'·As of June 30 . 

10,478 

$4,426,563 

3,106 010 

200 

$27 

4 

$0.53 

t0,243 

$4,589,504 

3,235,626 

151 

$20 

6 

S0.76 

10,759 

$4,246,785 

3,061.457 

264 

$42 

13 

$1.43 

11,291 

$3,949,694 

2,951,980 

472 

$269 

41 

$3.54 

11,813 

$3,711,612 

2,873.169 

856 

$464 

122 

$44 

..:T.;.

A::B:.:L:.:E;...:.:.11·.=D:.:.·.=S::e::.:I e::,

C:.,te:::d:;.:.A="-re:::g�a:.,t.:::e�C:.,o:.,n::d:.::lt:::lo:.,n.:..::.an:.,;:..::d lncome Data, B IF· Member Depository Inst itu Ila ns• 

(dollar figures it> millions) ·• Prellniinary

·-- ·-- • --

Number of inslitutions reporling .............................................. . 

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

Savings inst tutions ............................................................... .

Tot!II employees (lull-tlrne equivalent) ................................... .. 

COND/TfON DATA 

Total ass�ts ............................................................................ . 

Loans secur .. d by real estate, total ....................................... . 

1·4 Family residential ......................................................... . 

Multifamiy residenllol.property .......................................... ..

Commercial real Astate ...•.... , .............................................. . 

Construction, developmen1 and land .................................. . 

Con1n1ercial & industrial loans .............................................. . 

R�serve for losses .............................................................. . 

Total 

deposits ....................................................................... .

Dcrnestlc deposits ................................................................ . 

Estirna1ed insured deposits .................................................. . 

BIF•insurcd deposits (estimated) ........................................ . 

SAIF'-insurod deposits (estimated) ..................................... . 

Noncu,,ent loans and lease$ ................................................ . 

Other real estate own1>d ....................................................... . 

Equity capilal.., .... , ...................................... ......................... . 

CAPITAL CATEGORY DISTRIBUTION 

Nurnber ol inslitutions: 

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

AdequatE>ly capitaized ..........................................................•

Undercapitaized ................................................................... . 

Signficantly undercapitatized ............................................... .

Critically undercapitaliz.ed ..................................................... . 

Total ass<>ls: 

Well capilalized . ................................................................... . 

Adequately capltallted .......................................................... . 

Undercopitallze d ................................................................... . 

2nd Quarler Isl Quarter 2nd Quarter 

1996 1996 1995 

9,988 

9,606 

382 

1,537,581 

$4,678,948 

1,264,519 

756,059 

57,906 

323,678 

74,210 

6$9,700 

55,882 

3,271,865 

2,809,893 

2,182,250 

1,943,762 

238,488 

33,106 

6,215 

389,020 

9,839 

133 

11 

2 

3 

I 0, 139 

9,756 

383 

1

,519,878 

$4,583,426 

1,243,741 

745,412 

56,363 

318,311 

72,025 

680,225 

55,229 

3,234,173 

2,779,801 

2,177,360 

1.946, 139 

231,221 

33,953 

6,772 

376,924 

9,981 

137 

15 

3 

3 

$4,505,566 

75,237 

2,266 

209 

10,478 

10,092 

386 

1,539,862 

$4,426,563 

1,188,505 

705,919 

53,568 

309,691 

68,707 

644,417 

55,351 

3,106,010 

2,666,450 

2,106,138 

1,901.135 

205,003 

34,825 

8,456 

356,942 

10,318 

138 

12 

5 

5 

$4,308,547 

115,852 

1,038 

Signficantly undercapnaized .............................................. . 351 

Crlllcally undercapltallzed ...... ,.:::,····· ............................. =·····j · --·

Preliminary 

$4,660,596 

16,902 

1,183 

120 

148 148 775 

Preliminary 

INCOME DATA 

Net Interest lncon,e ......... : ...... :.: ................. :: ..... . 

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

Nat inco1ne ........................................................... . 

Ne! charge-ofls ..................................................... . 

_r�umber of institutions reporting nef losses .......... . 

•excludes insured branches of foreJgn banks.

First Half f' rs1 Half 2nd Quarter 

__ 

1��9�"�--�=� 1995 -�===-- '%Change -'--'1996 =---

$83,646 

8,073 

26,836 

7 598 

344 

580,163 

5,857 

24,173 

5,386 

337 

4.4 $42,625 

37,8 4,390 

11.0 14,475 

41.1 3,931 

2.1 402 

2nd Quarter 

1995 

$40,432 

3,049 

12,510 

2,946 

374 

%Change 

95:2,96:2 

·4.7

-4.8

-1.0

-0.2

5.7 

6.4 

7.1 

6.1 

4.5 

8.0 

7.0 

1.0 

5.3 

5,4 

0.0 

2.2 

16.3 

•4.9

·26.5

9 

-4.6

-3.6 

-8.3

-60.0

-40,0

8.2 

-85.4 

13.9

-65.8

-80.9

%Change 

95:2-96:2 

5A 

44.0 

15.7 

33.4 

7.5 

Bff'-Member Deposilory Institutions 16 

FDIC Quarterly Banking Profile 

Second Quarter 1996 
TABLE 1-E. Selected Indicators, SAIF-Member Depository Institutions• 

(dollarffgurHin million.,) 1996•• 1995.. 1995 

Numbor of institutions reporting....................... .............. 1,nR2 1.774 1,727 

Total a.sols.. ..... ............................................... $740.972 $761.543 i748,818 

Total deposits........ 517.040 545.983 53a 851 

Number <lf pmblffm in�lituti1>n� ........................................ ; !M 54 42 

Assets of problem institutions (in b llions) ........................ 1 $7 $30 $11 

Numher of f

�

i1edlc1s�

h,;t� in�

lt�

tions:

····:

··:···················· O 2 2 

AAsets of fa1fedfass1sted mstitue,Uo"'n"sc,("'mc,bcc•ll"',o"-n"'s)"' .. " .. "' ... " .. "' ... " .. �,--"$0"'."00"----"$0."'-"45"----

$0.46

••As of June 30. 

1994 

1,844 

$772.301 

550,162 

54 

$31 

2 

_.J,0.14 

1993 19Y7 

1,929 2,oa9 

$757,aBz $824,266 

576,507 65:l,86fi 

100 207 

$ij5 $1?.R 

9 59 

!6_ $44 

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

(dollar ngurQs in mll/lon$) · Pre!imna,y

Number of instit111 on� rffpo,ting ......................................... .... . 

Co,nmercial banks . ............................... .. . ........................ .. 

Savings ins�bdo111; ............................................................... . 

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

CONDITION DATA 

To1c,

I 

�ss81S. . ......................................... . 

L1>at1$ $8CU1Ad by tAH.I A�tB.lft, total ..... ................................ .. 

1-4 f�miy rcsidootia ....................... ............................... ..

Multifamily fesiden1ial propell)' ................. ......................... . 

Commercial real mtatF.1 .... .................................................. . 

Gonstr11ction, devA!oprnant and la11d .................................. . 

Commerciat & industrial loans .............................................. . 

H8$81Ye for lo1;sAs .............................................................. . 

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

Oo111tJslic doposits. 

Cstimated insured deposits ......... .........................................

. 

BIF-insurecJ dAp<isils (4,1stimatBd) ...... ..•.....•..•........••••........•. 1 

SAIHnsured deposits (estimated) ......................................

. 

1

. 

Nonr:urren1 loctns ;,nd IA;tne,:,;., ....•......••......•.......... •..•••...••.••..• 

Other real estate OYtned ....................................................... . 

Equity capiUJt. 

CAPITAL CATEGORY DISTRIBUT/011 

Number ot inslitu1ions: 

Wo l capililll<"'1 .................................................................... ..

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

UrKlarc"'Jlitalizad ................................................................... . 

Significantty undcrcapilalzed ............ .

(:ritically undArr.apitaliz�d ...............• ..................................... 

T olal assets: 

Woll capitalized......... . ............................... . 

Adequatety ectpita!i.:l:KI. . .................. ......•...................... 

Undcrcapitali2ed . ............................ ................... ................ . 

Slunlficanly underc-apit..lli1.ed .............................................. .

Critica!� undcrcapitaizcd 

·-·

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

2nd Quarter 

1!196 

1,682 

83 

1,599 

191,945 

$740.072 

459,128 

365.674 

38,188 

33,296 

21,827 

9,152 

4,923 

517.040 

518,9�1 

487,212 

12,274 

474.938 

6,027 

2.089 

Gl,810 

1,643 

33 

5 

0 

1 

$722.?.44 

18,300 

395 

0 

33 

1st Q111ulet 

rnoc 

1,704 

82 

1,622 

187,782 

$741.201 

455,658 

3G3,G73 

39,169 

32,657 

20,027 

9,000 

4.917 

526,355 

5:?f.i,?,9!) 

495,854 

10,805 

465.049 

6,534 

2.101 

62,130 

1,661 

38 

4 

1 

0 

$727.37& 

13.048 

743 

35 

0 

2nd C':lt1arter 

1995 

. 

1.774 

77 

1,697 

192,900 

$/61,543 

468.752 

:u�.s43 

42,501 

33 344

18 271 

7,338 

S.056 

545,98� 

fi4�.983 

515,81:l 

10,544 

505,269 

5,961 

2,571 

61,056 

1,704 

64 

3 

2 

1 

$727.090 

3a.U53 

756 

383 

253 

Preliminary Pro1imln�ty 

o/o Change 

95:2-96:2 

-5.2

-,.s

·

5.8 

-0.5 

-2.7 

2. 1 

-2.4

·102

-0.1 

19 5 

24.7 

-2 6

-�.3 

·5. 3 

0.0 

16.4

-6.0

1.1

-1A.A

1.2 

-:l,6 

-48.4

66.7

NA

0.0

-0.7

-44.6

-4-U

NI\

-87.?.

Fi 1st Half nrst tta1f ?.nd Qu;trtAr 2nd Quarter "/.Ch�ngtf 

INCOME DATA 1996 1995 %Change 1996 �1_.99e-5��-95�:2�·�96-e'-:2 �, 

Nol inleros\ inoumo ................ =::: .......: $10,858 $10,314 5.3 -$5,$26 $5.163 7.1 

P,ovis on for loan osses. .................... 799 755 5 8 396 383 3.5 

Nol income..................... ............... 3,733 ?.,568 45.4 1.898 1.383 

Nol cllarge,olls. .................. ................. /?2 723 -0.2 384 407 

Numl>ar of insti1ulicms tapnrting net lol\-sAi:t ........... _l __ 86 �. -21.K 79 

• !.!!. 

•o{j1a bGtvl8Cll 1909 i.111d 1995 do not includa A1tMl11ijon TIU$\ Corporation conservatorships. 8ccfut1as one salf-liq11idB.tin9 in�tilution. 

:f/.3 

·5.8 

.:!(I.I

FOIC Ouartedy Banking Profile 

Second Quarter 1996 19 SAIF-Member Deposi1ory rns!ilulions 
Number of FDIC-Insured "Problem" Institutions 

1991 -1996 

Number of Institutions 

2.ooor--

C=:J Savings Institutions 

- Commercial Banks

1,500 1,426 

1,000 

500 

0 

1,063 

433 3

77 318 286 

r· 254 ·�, ,

217 193 169 137 -�-

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

Savings Institutions 410 276 146 118 95 84 71 71 64 59 49 42 38 

Commercial Banks 1,016 787 426 383 338 293 247 215 190 158 144 127 99 

$ Billions

1,000 1

'$819 

800 

600 

400 

200 

0 

Assets of FDIC-Insured "Problem" Institutions 

1991 -1996 

C=:J Savings Institutions 

- Commercial Banks

-a....J-L..a

'$

.

,s

.

•

, $37 '" '27 ,,. I 

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

Savings Institutions 291 184 92 89 71 59 39 39 33 17 14 13 10 

Commercial Banks 528 408 242 53 42 36 33 27 23 20 17 13 8 

All FDIC-l11sured Institutions 20 

FDIC Oua11eriy Ba•tkillO Pmflle 

Second Quarter 1996 
NOTES TO USERS 

This publ cat on contains financial data and other information

for depository institutions insured by the Federal Deposit Insur• 

ance Corporation (FDIC). These notes are an integra part of 

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

information presented in the FDIC Quarterly Banking Profile is 

divided into the following groups of institut ons:

FDIC-Insured Commerclal Banks 

(Tables l·A through V-A.) 

This section covers commercial banks insured by the FDIC 

either through the Bank Insurance Fund {Bl F) or through 

the Savings Association Insurance Fund (SAIF). These 

institutions are regulated by and submit financial reports to 

one of the three federal commercial bank regulators (the 

Board of Governors of the Federal Reserve System, the 

FDIC or the Office of the Comptroller of the Currency). 

FDIC-Insured Savings Institutions 

(Tables l·B through V·B.) 

This section covers savings institutions Insured by either 

BIF or SAIF that operate under state or federal banking 

codes applicable to lhrifl Institutions, except for one selfllquidatlng institution primarily funded by the FSLIC Resolution Fund (FRF). Savings institutions that have been 

placed in Resolut on Trust Corporation conservatorship

are also excluded from these tables while in conservatorship. The institutions covered in this section are regulated 

by and submit financial reports to one of two Federal 

regulators - the FDIC or the Office of Thrift Supervision 

(OTS). 

FDIC·lnsured Institutions by Insurance Fund 

(Tables 1-C through 11-E.) 

Summary balance-sheet and earnings data are provided 

for commercial banks and savings institutions according to 

insurance fund membership. BIF-member institutions may 

aoquire SAIF-insured deposits, resulting in institutions with 

some deposits covered by both Insurance funds. Also, 

SAIF members may aoqulre BIF- nsured deposils. The

insurance fund membership does not necessarily reflect 

which fund insures the largest percentage of an institution's 

deposits. Therefore, the BIF-member and the SAIFmember tables each Include deposits from both insurance funds. Depository institutions that are not insured by 

the FDIC through either the Bl F or SAIF are not Included 

in the FDIC Quarterly Banking Profile. U.S. branches of 

institutions headquartered In foreign countries and non-deposit trust companies are not included. Efforts are made 

to obta n financial reports for all aclive institutions. However, in some cases, flnal financial reports are not available 

for Institutions Jhat have closed or converted their charter. 

DATA SOURCES 

The financial information appearing in this publicat on is

obtained primarily from the Federal Financial Institut ons

Examination Council (FFIEC) Call Reports and the OTS Thrift 

Financial Reports submitted by all FDIC-insured depository 

institutions. This Information Is stored on and retr eved

from the FDIC's Research Information System (RIS) 

data base. 

FDIC Quarterly Banking Prof e

.Second Quarter 1996 21 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting 

and accounting requirements of the FFIEC Call Reports. 

Beginning with June 1996, the Thrift Financial Roport is 

completed on a fully consolidated basis, with the exception 

of subsidiary depository institutions being reported on the 

equity method of accounting. Prior to this time, this report 

reflected the consolidation of the parent thrift with finance 

subsidiaries. All other subsidiaries were reported on an 

equity or cost basis. Some accounting differences exist, 

such as asset sales with recourse, for which the data 

necessary to reconcile these differences are not reported. 

All asset and liability figures used in calculallng performance ratios represent average amounts for the period 

(beginning-of-period amount plus end-of-period 

amount plus any interim periods, divided by the total 

number of periods). For "pooling-of-interest" mergers, 

the assets of the acquired institution(s) are included 

in average assets since the 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. Tables Ill and IV do not provide growth rates 

for the "Asset Size Distribution" since many institutions 

migrate between size groups. 

Asset Migrations 

All data are collected and presented based on the location 

of each reporting lnstitullon•s main office. When a main 

office is relocated to another state, adjustments to priorperiod data may be made to more accurately reflect 

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

include assets and liabilities located outside of the reporting institution's home state. Also, institutions may 

change their charters, resulting in an inter-industry migration, e.g. savings institutions can convert to commercial banks. These situations can affect state and regional 

totals. 

RECENT ACCOUNTING CHANGES 

FASB Statement 115, "Accounting for Certain Investments in Debt and Equity Securities" requires that securities that are not held in trading accounts be measured at 

either amortized cost or fair (market) value, depending on 

their classification category ("available-for-sale" or "held· 

to-maturty"). For additional details, see "Notes to Users,•

First Quarter, 1994, Quarterly Banking Profile. 

On November 15, 1995 the FASB released a guide to the 

implementation of Statement 115 and provided a window 

(November 15, 1995 through December 31, 1995) during 

which banks could elect to sell or reclassify securities 

between categories without violating lhe provisions of the 

accounting rule. In most cases, Statement 115 requires an 

automatic marking-to-market of the entire held-to-maturity 

portfolio (previously valued at amortized cost) if any heldto-matur ty security is sold or transferred. The one-time

Notes to Users 
opportunity lo avoid this requirement was designed to allow 

the sale or rec assification of socurities from the held·tO· 

m�

turity category. to available-for-sale or the trading port

 

!oho without ta nt1n9 the entire held-to-maturity category. 

The FASS announcement and guide also sought to provi�� further clarificat on of Statement 115, and correct 

misinterpretations of the original pronouncement. 

DEFINITIONS (in alphabetical order) 

All ?ther assets

.

-total cash, balances due from depository 

1nshtut1ons, premises, fixed assets, direct investments in real 

estato, investment in unconsolidated subsidiaries custom· 

ers'. liability on acceptances outstanding, assets held in 

trading accounts, federal funds sold, secur ties purchased 

with agreements to resell, and other assets. Beginning 

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

lated trading assets and liabilities, which had the effect of 

increasing the amount of trading account assets reported. 

All

. 

other liabilities - bank's liab lity on acceptances,

hm1ted-hfe preferred stock, and other liabilities. Effective 

3/31/94, includes revaluation losses on assets held In 

trading accounts. 

BIF:

insured deposits {estimated) - the amount of de· 

posits 1n accounts of less than $100,000 insured by the Bl F. 

For SAi F-member "OakM' institutions, it represents the 

ad1usted attributable amount acquired from BIF members. 

Capital category distribution - each institution's capital 

category is calculated or estimated from its financ al report 

and does not reflect supervisory upgrades or downgrades: 

(PerO<!nl) 

Woll-r.a.pitali1ed 

Adeqvately 

capital,ed

Under· 

capitalized 

Significantly 

undercapitalized 

Critically 

undercapitalized 

fOIO.I Ti9f 1 

H�it·U.lSGd A SX-8!1$.�d Tier 1 

r.�pilal • Cap�a1 • L&v�rng.g 

2:1 O and 2:6 snd :es 

�8

>6

>4

Tt1n!1;b'.e 

Equity 

and 

and 

or <3 

and 

and 

or <3 and :>2 

•As a pcrccn�o of ri�it-wctJIUGO as::.�!s.

Construction and development loans -includes oans 

for alt property types under construction, as welt as oans 

for land acquisition and development. 

Core capital -common equity capital plus noncumulative 

perpetual preferred stock plus minority interest in consoli· 

d�ted subsidiaries, less goodwill and other ineligible lntan· 

g1ble assets. The amount of eligible intangibles (including 

mortgage serv1c1ng rights) Included in core cap tal is limited 

1n accordance with supervisory capital regulations. 

Cost of funding earning assets - total Interest expense 

paid on deposits and other borrowed money as a percent· 

age of average earning assets. 

�erivative contracts, gross. fair values (positlve/nega· 

t1ve) � are reported separately and represent the amount 

at which a contract could be exchanged in a transaction 

between willing parties, other than in a forced or ltquldatlon 

sale. If a quoted market price is available for a contract 

the fair value reported for that contract is calculated using 

this marke! price. If quoted market prices are not avai able,

the reporting banks use the best estimate of fair value 

based on quoted market prices of similar contracts or on 

valuation techniques such as discounted cash flows. This 

Notes to Users 22 

information is reported only by banks with assets greater 

than $100 million. 

Direct and indirect investments in real estate - excludes loans secured by real 

estate and property acquired 

through forec osure. 

Earning assets -all loans and other investments that earn 

interest or dividend income. 

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

The sum of all deposit balances in acoounts of less than 

$100,000 plus the number of accounts with balances 

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

Failed/assisted institutions - An institution fails when 

regulatorsyak� control

. 

of the institution, placing the assets

and )

1ab1llbes into a bridge bank, conservatorship, receiv· 

ersh!P, or another healthy insti

tution. This action may

require the FDIC - or the RTC-to provide funds to cover 

losses. An institution is defined as "assisted" when the 

instituti

on remains open and receives some insurance 

funds in order to continue operating. 

FHLB advances - borrowings from the Federal Home 

Loan Bank (FHLB) reported by institutions that file a Thrift 

Financial 

Repo1t. Institutions that file a Call Report do not 

report borrowings ("advances") from the FHLB separately. 

Goodwill and other intangibles - intangible assets in· 

elude mortgage servicing rights, purchased credit card 

relationships and other identif able intangible assets. 

Loans. secu�ed by real estate - includes home equity 

loans, Junior hens 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 participat on 1n pools of residential mortgages and collateralized 

mortgage obligations issued or guaranteed by govern· 

ment-sponsored or private enterprises. Effective 3/31/94, 

the full implementation of FASS 115 meant that a portion 

of banks' mortgage-backed securities portfolio is now re· 

ported based upon fai� .

(market) values; previously, all 

mortgage-backed secunttes not held in trading accounts 

were reported at either amortized cost or lower of cost or 

market. 

Net charge-offs -total loans and leases charged off (re· 

moved from balance sheet because of unoollectibility), less 

amounts recovered on loans and leases previously 

charged off. 

Net Interest margin -the difference between interest and 

dividends earned on interest-bearing assets and interest 

paid to depositors and other creditors, expressed as a 

percentage of average earning assets. No adjustments 

are made for interest income that is tax exempt. 

Net operating income - income excluding discretionary 

transactions such as gains (or losses) on the sale of 

Investment securities and extraordinary items. Income 

taxes subtracted from operating income have been ad· 

Justed to exclude the portion applicable to securities gains 

(or losses). 

FDIC OuMerly Banking Prolile 

Second Quaner 1996 
Noncurrent assets - the sum of loans, leases, debt 

securities and other assets that are 90 days or more past 

due, or in nonaccruat status. Noncurrent debt securities 

and other assets were not Included prior to March 1991. 

Noncurrent loans & teases- 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 lnstl· 

tutions that actually filed a financial 

report.

Off-balance-sheet derivatives - represents the sum of 

the following: Interest-rate contracts (defined as the no· 

tlonal value of interest-rate swap, futures, forward and option 

oontracts), foreign-exchange-rate contracts, commodity 

contracts and equity contracts (defined slmllarly to interestrate contracts). 

Futures and fonvard contracts - a contract in which the 

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

specified future date, a specific quantity of underlying at a 

specified price or yield. These contracts exist for a variety of 

underlyings, including the traditional agricultural or physical 

commodities, as well as currencies and interest rates. Futures contracts are standardized and are traded on organized 

exchanges which set lim ts on counterparty credit exposure.

Forward contracts do not have standardized terms and are 

traded over the counter. 

Option contracts- a contract in which the buyer acquires the 

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

of underlying at a stated pr ce (strike price) during a period or

on a specified future date, in return for compensation (such as 

a fe9 or premium). The seller is obligated to purchase or sell 

the underly ng at the discretion of the buyer of the contract.

Swaps - an obligation between two parties to exchange a

series of cash flows al periodic intervals (sett ement dates),

for a specified per

i

od. The cash flows of a swap are either 

fixed, or determined for each settlement date by multiplying 

the quantity of lhe underlying (notional principal) by specified 

ref9rence rates or prices. Except for currency swaps, the 

notional pr ncipal is used to ca culate each payment but is

not exchanged. 

Other borrowed funds - federal 

funds purchased, securities sold with agreements to repurchase, demand notes 

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

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

''Trading liabilities", Jess 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 Repo/1 

(TFA), 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 institut ons that increased their net inoome (or decreased

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

"Problem" institutions - Federal regulators ass gn a composite rating to each financ al 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" instituti

ons are those lnsti· 

tutions with f nancial, operational, or managerial weakFO C Qua�erly Banking Profile

Second Quarter 1996 23 

nesses 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 

inst tutions, and for all SAi F-member Institutions for which

the FDIC is the primary federal regu ator, FDIC composite

ratings are used. For all SAi F-member institutions whose 

primary federal regulator is the OTS, the OTS composite 

rating is used. 

Restructured loans and teases - loan and lease financing receivables with terms restructured from the original 

contract. Excludes restructured loans and leases that are 

not in compliance with the modified terms. 

Return on assets - net income (including gains or tosses 

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 

averag0 totat equity capital. 

Risk-weighted assets - assets adjusted for risk-based 

capital definitions which Include on-balance-sheet as well 

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

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

to assign a balance sheet equivalent amount for selected 

off-balance-sheet accounts. 

SAIF-insured deposits (estimated} - the amount of deposits In accounts of less than $100,000 insured by the 

SAi F. For Bl F-member "Oakar" institutions, it represents 

the adjusted attributable amount acquired from SAi F members. 

securities - excludes securities held in trading accounts. 

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

meant that a portion of banks' securit es porlfollos is now

reported based upon fair (market) values; previously, all 

secur ties not held in trad ng accounts were reported at

either amortized cost or lower of cost or market. 

Securities gains (losses) - Rea ized gains (losses) on

held-to-maturity and available-for-sate securities, belore 

adjustments tor Income taxes. Thrift Financial Reporters 

(TFR) also include gains (losses) on the sales of assets 

held for sale. In all publications prior to September 1995, 

gains (losses) on sates of available-for sale securities and 

assets held for sale were excluded for savings institutions 

that file a TFR. 

Troubled real estate asset rate - noncurrent real estate 

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

estate loans and other real 

estate owned.

Unused loan commitments - includes credit card lines, 

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

unused commitments to originate or purchase loans. 

Volatile liabilities - the sum of large-denomination time 

deposits, foreign-office deposits, federal 

funds purchased,

securities sold under agreements to repurchase, and other 

borrow ngs. Beginning 3/31/94, new reporting detail permits the exclusion of other borrowed money with origi11a

maturity of more than one year; previously, all other borrowed money was included. Also beginning 3/31/94, the 

newly-reported item "Trading l abilities", less revaluation

losses on assets held in trading accounts, is included. 

Yield on earning assets - total interest, dividend and fee 

income earned on loans and investments as a percentage 

of average earning assets. 

Notes to Users