Donna Tanoue, Chairman 

First Quarter 2000 COMMERCIAL BANKING PERFORMANCE — FIRST QUARTER 2000 

• Industry Earnings Surpass $19.5 Billion 

• Commercial Loan Charge-Offs And Delinquencies Rise 

• Commercial Real Estate Lending Accelerates 

• “Problem” Banks Rise To Highest Level In 11 Quarters 

Division of Research 

& Statistics 

Don Inscoe 

Associate Director 

Statistics Branch 

(202) 898-3940 

Tim Critchfield 

(202) 898-8557 

Jim McFadyen 

(202) 898-7027 

Ross Waldrop 

(202) 898-3951 

A strong economy and significant market-related 

gains helped propel commercial bank earnings to 

a new record in the first quarter of 2000. 

However, changes in the composition of banks’ 

assets, liabilities and revenues may leave them 

more vulnerable to changes in the economy. 

Insured commercial banks reported $19.5 billion 

in net income for the quarter, an increase of $1.6 

billion (8.8 percent) over the first quarter of 1999. 

Industry earnings were $125 million above the 

previous quarterly record, set in the third quarter 

of 1999. The average return on assets (ROA) 

rose to 1.35 percent from 1.32 percent a year 

ago. Almost two-thirds (61.8 percent) of all commercial banks recorded an ROA of 1 percent or 

more in the first quarter, while 59.0 percent had a 

higher ROA than in the first quarter of 1999. 

While average profitability increased for the entire 

industry, the frequency of improvement was 

greatest among smaller banks. Almost 60 percent — 59.5 percent — of all commercial banks 

QUARTERLY NET INCOME, 

$ Billion 1996–2000 

Securities and Other Gains/Losses, Net 

19.5 19.4 

18.0 Net Operating Income 17.7 17.0 15.9 16.1 

14.5 14.6 14.715.3 15.014.8 13.813.2 13.7 

12.0 

0 

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

1996 1997 1998 1999 2000 

with less than $1 billion in assets had higher 

ROAs than a year ago, while only 49.6 percent of 

banks with assets of $1 billion or more showed an 

increase. The average ROA at banks with less 

than $1 billion in assets rose to 1.29 percent from 

1.25 percent a year ago. The improvement in 

average profitability reflected a higher proportion 

of banks operating as Subchapter S corporations 

(see Notes to Users, p. 21). Strong growth in 

noninterest income, especially at large banks, 

continues to make the greatest contribution to the 

improvement in industry earnings. First-quarter 

earnings also benefited from relatively slow 

growth in noninterest expenses, due in part to the 

absence of the large charges related to mergers 

and restructurings that have characterized many 

past quarters. Growth in loan-loss provisions was 

moderate. 

Noninterest income of $38.4 billion was $3.7 billion (10.6 percent) higher than a year ago. All catNONINTEREST INCOME AS A PERCENTAGE 

OF NET OPERATING REVENUE,* 1985–2000 

Quarterly Noninterest Income, % of Net Operating Revenue* 

50 

Assets > $1 Billion 46.6 

40 

30 Assets < $1 Billion 

28.0 

26.5 

20 

17.9 

10 1 234 1234 12 3 4 12 3 4 12 3 4 12 3 4 12 3 41 23 412 3 4 12 3 4 12 3 4 1234 12 3 4 1 234 1 2 3 4 1 

1986 1988 1990 1992 1994 1996 1998 2000 

*Net operating revenue equals net interest income plus noninterest income. 

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

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

publicinfo@fdic.gov. 

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

the FDIC’s Institution Directory (I.D.) System on this Web site. 
egories of noninterest income registered strong NUMBER OF SUBCHAPTER S CORPORATIONS, 

growth. Fiduciary income was up by $707 million 1997–2000 

Number of Institutions (14.8 percent), while service charges on deposit 

accounts were $493 million (9.7 percent) higher. 

Other fee income was up by $1.7 billion (11.8 percent). Banks’ revenue from trading activities rose by 

$262 million (7.3 percent), while all other noninterest 

income increased by $499 million (7.5 percent). As 

evidence of the strength that equity markets enjoyed 

during part of the first quarter, venture capital gains 

contributed over $1.3 billion to noninterest revenues 

during the quarter. These gains, as well as much of 

banks’ trading revenues and some of their fiduciary 

569 575 587 601 

1,031 1,035 1,037 1,041 

1,271 1,274 1,285 1,283 

1,422 

3/97 6/97 9/97 12/97 3/98 6/98 9/98 12/98 3/99 6/99 9/99 12/99 3/00 

0 

500 

1,000 

1,500 

income, are highly sensitive to conditions in financial 

markets and are more volatile than other revenues. 

Net interest income was $2.7 billion (5.7 percent) 

higher than in the first quarter of 1999. Higher interest rates caused a negative $1.3-billion swing in 

banks’ proceeds from securities sales compared to a 

year ago. In the first quarter, securities sales produced a net loss of $730 million; a year ago, securities sales produced a net gain of $565 million. 

Noninterest expenses were $2.3 billion (4.6 percent) 

higher, while provisions for loan losses increased by 

$365 million (6.7 percent). 

QUARTERLY NET INTEREST MARGINS, 

1996–2000 Net Interest Margin (%) 

1 3 4 1 3 4 1 3 4 1 3 4 

3.5 

4.0 

4.5 

5.0 

5.5 

2 2 2 2 1 

Assets > $1 Billion 

Assets < $1 Billion 4.57 

3.88 

1996 1997 1998 1999 2000 

Average net interest margins improved at small 

banks but declined at large banks compared to a 

year ago. The industry’s margin of 4.00 percent was 

down from the 4.05 percent average of a year ago. 

The average margin at banks with less than $1 billion in assets was 4.57 percent, compared to 4.43 

percent a year ago. At banks with more than $1 billion in assets, the average margin was 3.88 percent, 

down from 3.96 percent a year ago. More than twothirds (67.8 percent) of all commercial banks with 

less than $1 billion in assets had higher net interest 

margins than a year ago, while fewer than half (47.0 

percent) of commercial banks with more than $1 billion in assets reported higher margins. In an environment of rising interest rates, larger banks had 

greater increases in their average funding expenses 

than smaller institutions. 

The number of commercial banks operating as 

Subchapter S corporations increased from 1,283 to 

1,422 during the quarter. The average quarterly ROA 

at these banks was 1.75 percent, and their average 

ROE was 19.36 percent. For all other commercial 

banks with assets of less than $1 billion (99.6 percent 

of banks operating as Subchapter S corporations 

have less than $1 billion in assets), the average ROA 

was 1.24 percent, and the average ROE was 12.72 

percent. At the end of March, 17.6 percent of all commercial banks with less than $1 billion in assets were 

Subchapter S corporations. 

Noncurrent commercial and industrial loans (those 

that were 90 days or more past due or in nonaccrual 

status) rose slightly, despite a higher level of net 

charge-offs. During the quarter, noncurrent commercial and industrial loans increased by $1.4 billion, and 

another $1.3 billion was charged off. The noncurrent 

rate on banks’ commercial and industrial loans rose 

from 1.18 percent to 1.28 percent. This is the highest 

level for this rate since the third quarter of 1994. A 

year ago, the noncurrent rate was 1.10 percent. The 

annualized net charge-off rate on commercial and 

industrial loans was 0.52 percent, up from 0.44 percent a year earlier. The average noncurrent rate on 

all loans and leases was 0.97 percent at the end of 

March, below the 0.99 percent rate of a year ago. 

The average net charge-off rate of 0.57 percent was 

down from 0.62 percent in the first quarter of 1999. 

The amount of real estate loans that were noncurrent 

rose by $497 million during the quarter, but the noncurrent rate remained unchanged at 0.79 percent, 

because of growth in banks’ real estate loans. A year 

ago, the noncurrent rate on real estate loans was 

0.88 percent. The net charge-off rate on credit-card 

loans was 4.56 percent, down from 4.93 percent a 

year ago, but slightly above the 4.51 percent rate in 

the fourth quarter of 1999. 

Asset growth remained robust, as a growing econoFDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 First Quarter 2000 
RECENT TRENDS IN COMMERCIAL BANKS’ 

BALANCE SHEETS, 1996–2000 

Percent of Total Assets 

my continues to support strong loan demand. 

Changes in the composition of commercial bank 

assets and liabilities continue to point to rising vulnerability to higher interest rates and a weaker economy. The share of assets that mature or reprice at 

intervals of 5 years or longer continues to increase at 

the same time that the share of commercial bank 

funding that comprises stable, lower-cost core 

deposits declines and the share of more volatile, 

short-term liabilities rises. The proportion of commercial banks’ loans that is in categories that represent concentrated credit risk (loans to commercial 

borrowers that have relatively large balances at risk, 

so that a relatively small number of defaults can 

impair a bank’s capital or income) remains at the 

highest level since 1991. 

1 2 

1996 1997 1998 1999 2000 

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

0 

20 

40 

60 

Long-Term Assets (> 5 yrs.) 

35% 

Volatile Liabilities 

Core Deposits 

21% 

47% 

30% 

14% 

53% 

40 

43 45 43 

40 40 

60 

57 55 57 

60 60 

12/91 12/93 12/95 12/97 12/99 3/00 

0 

Percent of Loans 

Commercial Borrowers Consumer Loans 

CREDIT RISK DIVERSIFICATION, 

1991–2000 

Commercial bank assets increased by $112.4 billion 

in the first quarter, led by strong loan growth. Total 

loans increased by $77.1 billion. Commercial and 

industrial loans increased by $30.6 billion, while residential mortgage loans rose by $18.2 billion and commercial real estate loans were up by $15.9 billion. 

FDIC Quarterly Banking Profile 

Assets in trading accounts grew by $24.4 billion, and 

fed funds sold increased by $22.4 billion. The 

strongest growth rates were registered by construction and development loans, loans secured by multifamily residential properties, home mortgage loans, 

and loans secured by commercial real estate properties. Growth rates for these loans have been rising 

for the past 12 months or longer. 

The share of asset funding provided by deposits fell 

for the eighth time in the last nine quarters, to 72.4 

percent. This declining trend has been almost continuous since 1991, when deposits funded 84 percent 

of commercial bank assets. Deposits in domestic 

offices increased by $63.6 billion during the quarter, 

while foreign office deposits declined by $16.1 billion. 

The growth in domestic deposits occurred in interestbearing time and savings deposits. Demand 

deposits declined by $8.5 billion. Volatile liabilities, 

which include interest-sensitive deposits and shortterm nondeposit borrowings, increased by $39.9 billion during the quarter. Fed funds purchased 

accounted for $35.2 billion of this increase. 

Commercial banks’ FHLB advances increased by 

$6.4 billion. 

Equity capital increased by $12.0 billion, the largest 

quarterly increase since the second quarter of 1998. 

The increase would have been larger but for a $2.0-

billion decline in the value of banks’ available-for-sale 

securities. The industry’s equity-capital-to-assets 

ratio rose slightly during the quarter, from 8.37 percent to 8.41 percent. A year ago, the ratio was 8.68 

percent, but during the intervening 12 months, the 

value of banks’ available-for-sale securities declined 

by $17.6 billion, accounting for the erosion in the 

equity ratio. The core capital ratio, which is not affected by changes in the values of securities holdings, 

remained unchanged at 7.80 percent during the quarter, up from 7.68 percent a year ago. Banks’ reserves 

for credit losses increased by $1.1 billion in the first 

quarter, but the ratio of reserves to loans remained at 

1.68 percent, a 13-year low. During the past 12 

months, reserves have increased by only 3.5 percent. 

The “coverage ratio” fell to $1.73 in reserves for every 

$1.00 in noncurrent loans, its lowest level since the 

first quarter of 1996. 

The number of insured commercial banks declined 

by 62 during the first quarter. There were 56 new 

commercial bank charters, while 118 commercial 

banks were absorbed by mergers and 1 insured commercial bank failed. The number of insured commercial banks on the FDIC’s “Problem List” increased 

from 66 to 72 during the quarter. This is the largest 

number of “problem” banks since mid-year 1997. 

Assets of “problem” banks increased from $4.5 billion 

to $5.2 billion. 

First Quarter 2000 3 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

2000* 1999* 1999 1998 1997 1996 1995 

Return on assets (%)............................................. 1.35 1.32 1.31 1.19 1.23 1.19 1.17 

Return on equity (%)............................................. 16.08 15.40 15.32 13.93 14.69 14.45 14.66 

Core capital (leverage) ratio (%).............................. 7.80 7.68 7.80 7.54 7.56 7.64 7.61 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.65 0.67 0.63 0.65 0.66 0.75 0.85 

Net charge-offs to loans (%).................................... 0.57 0.62 0.61 0.67 0.64 0.58 0.49 

Asset growth rate (%)............................................. 8.04 5.92 5.37 8.53 9.54 6.16 7.53 

Net interest margin (%).......................................... 4.00 4.05 4.07 4.07 4.21 4.27 4.29 

Net operating income growth (%).............................. 13.60 18.54 20.46 2.27 12.47 6.43 7.48 

Number of institutions reporting.............................. 8,518 8,722 8,580 8,774 9,142 9,527 9,940 

Percentage of unprofitable institutions (%).................. 6.41 6.08 7.39 6.12 4.85 4.28 3.55 

Number of problem institutions................................. 72 64 66 69 71 82 144 

Assets of problem institutions (in billions).................. $5 $5 $4 $5 $5 $5 $17 

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

* Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 31. 

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

(dollar figures in millions) 

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

Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

2000 1999 1999 99:1-00:1 

8,518 8,580 8,722 -2.3 

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

CONDITION DATA

... 1,648,952 1,657,518 1,619,878 1.8 

 Total assets..................................................................... $5,847,134 $5,734,747 $5,411,797 8.0

 Loans secured by real estate.......................................... 1,561,354 1,509,986 1,346,665 15.9

 Commercial & industrial loans.......................................... 1,001,637 970,999 921,574 8.7

 Loans to individuals...................................................... 556,487 558,348 548,611 1.4

 Farm loans.................................................................. 43,380 45,276 43,953 -1.3

 Other loans & leases...................................................... 408,762 410,307 394,142 3.7

 Less: Unearned income................................................... 3,253 3,671 3,849 -15.5

 Total loans & leases......................................................... 3,568,368 3,491,245 3,251,097 9.8

 Less: Reserve for losses................................................... 59,885 58,823 57,884 3.5

 Net loans and leases...................................................... 3,508,482 3,432,421 3,193,213 9.9

 Securities........................................................................ 1,057,255 1,046,349 995,651 6.2

 Other real estate owned................................................... 2,763 2,794 3,138 -11.9

 Goodwill and other intangibles.......................................... 101,317 98,045 83,342 21.6

 All other assets............................................................... 1,177,317 1,155,138 1,136,453 3.6 

Total liabilities and capital................................................... 5,847,134 5,734,747 5,411,797 8.0

 Noninterest-bearing deposits............................................. 708,243 703,302 667,342 6.1

 Interest-bearing deposits.................................................. 3,170,048 3,127,473 2,969,997 6.7

 Other borrowed funds...................................................... 1,089,155 1,048,827 937,128 16.2

 Subordinated debt............................................................ 78,934 76,450 73,363 7.6

 All other liabilities............................................................ 308,970 298,922 294,364 5.0

 Equity capital.................................................................. 491,784 479,774 469,603 4.7 

Loans and leases 30-89 days past due................................. 39,798 39,725 39,045 1.9 

Noncurrent loans and leases................................................ 34,593 33,005 32,218 7.4 

Restructured loans and leases............................................. 1,133 1,146 1,530 -26.0 

Direct and indirect investments in real estate........................... 280 279 518 -46.0 

1-4 Family residential mortgages.......................................... 863,067 839,154 748,790 15.3 

Mortgage-backed securities................................................ 461,879 454,463 455,884 1.3 

Earning assets.................................................................. 5,046,782 4,947,384 4,674,403 8.0 

Long-term assets (5+ years)................................................ 1,222,097 1,181,048 1,060,785 15.2 

Volatile liabilities............................................................... 2,043,738 2,003,856 1,751,445 16.7 

Foreign office deposits...................................................... 639,489 655,589 574,726 11.3 

FHLB Advances (Source: FHFB).......................................... 160,810 155,407 108,141 48.7 

Unused loan commitments................................................... 4,064,084 3,969,652 3,734,026 8.8 

Off-balance-sheet derivatives............................................. 38,121,432 34,883,824 33,198,467 14.8 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary 

Full Year Full Year 1st Quarter 1st Quarter %Change 

1999 1998 %Change 2000 1999 99:1-00:1 

$367,327 $362,023 1.5 $100,347 $90,249 11.2 

... 175,127 179,266 -2.3 50,268 42,866 17.3

... 192,200 182,757 5.2 50,079 47,383 5.7 

... 21,807 22,218 -1.9 5,781 5,416 6.7 

144,408 123,700 16.7 38,416 34,733 10.6 

... 204,157 194,117 5.2 51,945 49,641 4.6 

181 3,127 -94.2 -730 565 N/M 

39,396 31,957 23.3 10,506 9,624 9.2 

... 169 507 -66.7 17 -34 149.0

71,599 61,799 15.9 19,549 17,966 8.8 

... 20,361 20,730 -1.8 5,043 4,998 0.9 

... 51,930 41,004 26.6 11,568 9,203 25.7

... 71,365 59,245 20.5 20,013 17,618 13.6 

N/M - Not meaningful 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 First Quarter 2000 
 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE III-A. First Quarter 2000, FDIC-Insured Commercial Banks 

FIRST QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

... 8,518 5,093 3,046 300 79 675 1,429 1,847 2,195 1,443 929 

Total assets (in billions).................................... $5,847.1 $238.7 $761.3 $858.9 $3,988.2 $2,012.8 $1,556.1 $997.3 $396.9 $315.2 $568.9 

Total deposits (in billions).................................... 3,878.3 202.8 620.6 581.0 2,473.9 1,246.9 1,043.0 667.5 277.9 250.5 392.5 

Net income (in millions).................................... 19,549 682 2,509 3,320 13,038 7,049 5,258 2,969 1,394 875 2,004 

% of unprofitable institutions.............................. 6.4 9.6 1.5 2.0 3.8 8.4 10.1 5.7 3.4 5.2 9.6 

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

Performance ratios (annualized, %) 

68.6 66.9 71.6 70.7 60.8 67.7 69.5 65.9 68.0 69.3 73.7 

Yield on earning assets.................................... 8.02 8.17 8.29 8.36 7.88 7.86 7.91 7.93 8.39 7.92 8.85 

Cost of funding earning assets........................... 4.02 3.64 3.70 3.91 4.13 4.26 3.91 4.23 3.90 3.49 3.50 

Net interest margin.......................................... 4.00 4.53 4.58 4.45 3.75 3.60 4.00 3.70 4.50 4.43 5.36 

Noninterest income to earning assets.................. 3.07 1.23 1.78 3.02 3.47 4.31 2.49 2.01 2.65 1.53 3.54 

Noninterest expense to earning assets.................. 4.15 3.88 3.95 4.21 4.20 4.72 3.73 3.34 4.07 3.66 5.20 

Credit loss provision to assets.............................. 0.40 0.21 0.28 0.48 0.41 0.43 0.28 0.34 0.57 0.26 0.69 

Net operating income to assets........................... 1.38 1.13 1.34 1.60 1.36 1.41 1.37 1.22 1.49 1.25 1.57 

Return on assets............................................. 1.35 1.15 1.33 1.56 1.32 1.40 1.36 1.21 1.42 1.12 1.44 

Return on equity................................................ 16.08 10.66 14.35 17.29 16.61 17.91 15.88 15.17 16.07 13.03 14.16 

Net charge-offs to loans and leases..................... 0.57 0.16 0.31 0.68 0.62 0.76 0.39 0.34 0.83 0.34 0.86 

Credit loss provision to net charge-offs.................. 114.69 209.91 138.53 111.74 111.48 107.59 109.96 150.27 100.66 131.48 119.95 

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

Condition Ratios (%) 

56.77 66.87 61.12 54.28 56.05 57.87 55.28 56.96 55.44 59.59 55.90 

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

Loss allowance to: 

... 86.31 92.03 91.73 89.90 84.16 82.75 86.83 89.99 90.61 89.01 86.57 

Loans and leases.......................................... 1.68 1.42 1.45 1.86 1.70 1.93 1.52 1.37 1.70 1.32 2.10 

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

Noncurrent assets plus 

173.12 148.95 184.63 217.10 164.35 150.28 176.66 174.10 209.83 151.03 242.94 

other real estate owned to assets..................... 0.65 0.69 0.59 0.59 0.67 0.73 0.61 0.57 0.59 0.59 0.66 

Equity capital ratio............................................. 8.41 10.80 9.30 9.00 7.97 7.95 8.55 7.93 8.79 8.64 10.12 

Core capital (leverage) ratio................................. 7.80 11.04 9.32 8.47 7.17 7.42 7.73 7.67 8.37 8.29 8.94 

Tier 1 risk-based capital ratio.............................. 9.57 16.70 13.14 11.15 8.37 9.54 9.06 9.13 10.52 11.67 10.26 

Total risk-based capital ratio.............................. 12.25 17.81 14.32 13.00 11.51 12.51 11.75 11.86 12.65 13.58 12.54 

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

Structural Changes (YTD) 

90.46 69.92 77.52 92.12 95.01 83.05 95.62 99.15 93.77 72.41 94.72 

New Charters................................................ 56 54 1 1 0 6 17 16 8 3 6 

Banks absorbed by mergers.............................. 118 37 59 20 2 10 40 28 21 10 9 

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

PRIOR FIRST QUARTERS

 (The way it was...) 

1 0 1 0 0 0 0 0 1 0 0 

Number of institutions................................1999 8,722 5,375 2,957 317 73 684 1,440 1,897 2,252 1,502 947 

...............................................1997 9,450 6,146 2,900 331 73 739 1,565 2,082 2,393 1,671 1,000 

...............................................1995 10,242 7,123 2,725 331 63 830 1,697 2,237 2,566 1,828 1,084 

Total assets (in billions).............................1999 $5,411.8 $250.5 $727.3 $901.4 $3,532.5 $1,924.3 $1,206.5 $873.6 $371.7 $302.8 $732.9 

................................................1997 4,641.5 277.2 710.9 995.4 2,658.0 1,755.1 828.1 727.3 304.0 337.2 689.7 

................................................1995 4,116.1 310.3 667.8 1,077.0 2,060.9 1,597.9 682.0 665.0 261.3 306.6 603.3 

Return on assets (%)................................1999 1.32 1.09 1.30 1.71 1.24 1.32 1.26 1.36 1.52 1.06 1.41 

................................................1997 1.25 1.21 1.32 1.29 1.23 1.19 1.31 1.27 1.33 1.23 1.32 

................................................1995 

Net charge-offs to loans & leases (%) 

1.10 1.17 1.23 1.29 0.94 0.93 1.12 1.15 1.41 1.10 1.32 

................................................1999 0.62 0.18 0.34 0.82 0.65 0.84 0.44 0.40 0.70 0.44 0.70 

................................................1997 0.58 0.17 0.35 0.96 0.52 0.66 0.43 0.42 0.71 0.31 0.80 

................................................1995 

Noncurrent assets plus 

0.38 0.15 0.31 0.50 0.37 0.58 0.23 0.21 0.41 0.16 0.37 

OREO to assets (%)..............................1999 0.67 0.75 0.64 0.69 0.67 0.76 0.59 0.58 0.62 0.68 0.70 

................................................1997 0.73 0.80 0.74 0.83 0.69 0.82 0.63 0.58 0.67 0.61 0.87 

................................................1995 0.99 0.88 0.91 0.90 1.07 1.24 0.73 0.65 0.67 0.66 1.28 

Equity capital ratio (%)..............................1999 8.68 11.07 9.60 9.79 8.04 7.94 9.20 8.57 8.92 8.93 9.66 

................................................1997 8.41 10.62 9.66 9.04 7.60 7.48 8.22 8.55 10.00 9.47 9.62 

................................................1995 7.88 10.22 9.21 8.32 6.86 7.25 7.97 8.14 8.75 8.44 8.46 

FDIC Quarterly Banking Profile 

First Quarter 2000 5 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- South 

west west West 

... 8,580 5,156 3,030 318 76 678 1,450 1,858 2,205 1,456 933 

Total assets (in billions).................................... $5,734.7 $242.4 $754.6 $915.2 $3,822.5 $2,009.6 $1,531.6 $952.0 $389.6 $314.2 $537.7 

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

Net income (in millions).................................... 71,599 2,376 9,697 12,851 46,675 23,451 19,237 11,661 5,542 3,481 8,228 

% of unprofitable institutions.............................. 7.4 10.6 2.6 1.3 1.3 10.2 12.8 5.2 3.3 6.6 12.2 

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

Performance Ratios (%) 

62.9 57.0 71.1 76.1 77.6 68.4 65.7 63.2 59.6 58.2 68.8 

Yield on earning assets.................................... 7.78 7.93 8.08 7.98 7.65 7.66 7.67 7.60 8.16 7.59 8.64 

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

Net interest margin.......................................... 4.07 4.43 4.59 4.42 3.84 3.67 4.05 3.84 4.56 4.36 5.42 

Noninterest income to earning assets.................. 3.06 1.45 1.82 2.93 3.47 4.09 2.50 2.26 2.73 1.61 3.66 

Noninterest expense to earning assets.................. 4.32 4.05 3.96 4.25 4.44 4.84 3.93 3.66 4.14 3.76 5.34 

Credit loss provision to assets.............................. 0.40 0.32 0.33 0.48 0.40 0.42 0.32 0.29 0.58 0.30 0.67 

Net operating income to assets........................... 1.30 1.01 1.33 1.50 1.27 1.24 1.27 1.27 1.52 1.17 1.63 

Return on assets............................................. 1.31 1.01 1.35 1.48 1.28 1.24 1.29 1.28 1.48 1.15 1.64 

Return on equity................................................ 15.32 9.02 14.13 16.02 15.97 15.76 14.73 15.44 16.78 13.16 15.51 

Net charge-offs to loans and leases..................... 0.61 0.37 0.36 0.68 0.66 0.79 0.45 0.37 0.76 0.46 0.95 

Credit loss provision to net charge-offs.................. 107.10 144.01 146.01 113.27 99.82 100.32 111.84 117.68 113.48 114.24 104.74 

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

Condition Ratios (%) 

58.67 68.02 60.86 55.75 58.47 60.61 57.58 58.60 55.45 61.26 56.12 

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

Loss allowance to:

... 86.27 91.17 91.25 89.76 84.14 83.00 86.91 89.36 90.35 88.82 86.74 

 Loans and leases.......................................... 1.68 1.42 1.46 1.82 1.71 1.93 1.53 1.37 1.69 1.32 2.16

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

Noncurrent assets plus

... 178.22 157.74 193.56 220.94 168.20 152.73 186.50 182.96 214.54 144.12 252.35 

 other real estate owned to assets........................ 0.63 0.65 0.58 0.58 0.66 0.71 0.58 0.55 0.60 0.61 0.67 

Equity capital ratio............................................. 8.37 10.68 9.25 9.09 7.87 7.71 8.60 8.02 8.84 8.53 10.30 

Core capital (leverage) ratio................................. 7.80 10.88 9.21 8.49 7.14 7.54 7.57 7.69 8.46 8.19 8.87 

Tier 1 risk-based capital ratio.............................. 9.50 16.64 13.19 11.01 8.22 9.40 8.98 9.11 10.56 11.67 10.23 

Total risk-based capital ratio.............................. 12.17 17.74 14.38 12.93 11.37 12.42 11.61 11.82 12.72 13.59 12.46 

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

Structural Changes 

89.60 69.59 77.65 91.16 93.98 81.03 96.46 98.75 95.02 71.94 92.02 

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

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

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

PRIOR FULL YEARS 

(The way it was...) 

7 4 2 1 0 1 3 0 0 2 1 

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

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

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

Total assets (in billions).............................1998 $5,442.5 $252.4 $726.8 $921.8 $3,541.6 $1,922.3 $1,211.5 $889.3 $376.5 $304.7 $738.2 

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

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

Return on assets (%)................................1998 1.19 1.14 1.31 1.52 1.08 1.06 1.30 1.25 1.50 1.13 1.11 

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

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

Net charge-offs to loans & leases (%) 

1.15 1.12 1.19 1.31 1.06 1.07 1.18 1.13 1.46 1.12 1.24 

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

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

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

Noncurrent assets plus 

0.50 0.25 0.37 0.54 0.57 0.75 0.27 0.29 0.46 0.16 0.58 

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

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

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

Equity capital ratio (%)..............................1998 8.49 10.95 9.52 9.46 7.85 7.80 9.10 8.27 8.72 8.83 9.29 

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

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

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

Rhode Island, Vermont, U.S. Virgin Islands

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

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

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

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 6 First Quarter 2000 
TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

March 31, 2000 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 1.08 1.33 0.98 0.89 1.16 1.08 1.17 1.08 1.11 1.18 0.80 

Construction and development........................... 1.27 1.17 1.07 1.19 1.41 0.97 0.99 1.99 1.62 1.27 1.11 

Commercial real estate.................................... 0.79 1.00 0.74 0.78 0.80 0.86 0.66 0.89 0.87 1.01 0.70 

Multifamily residential real estate........................ 0.58 0.85 0.50 0.50 0.62 0.55 0.43 0.95 0.51 0.63 0.41 

Home equity loans.......................................... 0.77 0.68 0.65 0.69 0.81 0.65 0.72 1.13 0.65 0.66 0.45 

Other 1-4 Family residential.............................. 1.27 1.60 1.23 0.94 1.36 1.20 1.54 1.02 1.18 1.35 0.90 

Commercial and industrial loans*........................... 0.89 1.88 1.39 1.35 0.66 0.52 0.74 1.13 1.66 1.47 1.29 

Loans to individuals............................................. 2.06 2.10 1.86 2.16 2.06 2.31 1.95 1.99 2.13 1.43 1.84 

Credit card loans............................................. 2.36 2.40 3.34 2.56 2.23 2.53 2.62 1.82 2.46 1.11 1.93 

Other loans to individuals................................. 1.88 2.09 1.58 1.83 1.95 2.10 1.75 2.01 1.83 1.44 1.71 

All other loans and leases (including farm)............... 0.56 N/A N/A 1.00 0.55 0.47 0.31 0.92 0.68 0.41 0.77 

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

Percent of Loans Noncurrent** 

... 0.71 1.20 0.55 0.42 0.74 0.17 0.74 0.50 0.96 0.64 1.88 

All real estate loans............................................. 0.79 0.78 0.62 0.71 0.88 0.98 0.81 0.73 0.63 0.82 0.58 

Construction and development........................... 0.73 0.58 0.56 0.80 0.79 1.07 0.74 0.68 0.57 0.74 0.66 

Commercial real estate.................................... 0.77 0.77 0.65 0.78 0.84 0.97 0.72 0.82 0.64 0.91 0.60 

Multifamily residential real estate........................ 0.39 0.53 0.43 0.47 0.34 0.32 0.42 0.48 0.31 0.25 0.41 

Home equity loans.......................................... 0.34 0.26 0.31 0.34 0.35 0.36 0.25 0.49 0.30 0.34 0.23 

Other 1-4 Family residential.............................. 0.82 0.69 0.60 0.69 0.93 0.86 0.95 0.72 0.58 0.73 0.59 

Commercial and industrial loans*........................... 1.28 1.39 1.20 1.07 1.26 1.54 1.15 1.04 1.06 1.39 1.32 

Loans to individuals............................................. 1.35 0.76 0.84 1.10 1.54 2.15 0.83 0.71 1.20 0.47 1.13 

Credit card loans............................................. 1.98 1.29 2.63 1.73 2.02 2.34 1.68 1.17 1.89 0.76 1.61 

Other loans to individuals................................. 0.97 0.74 0.50 0.58 1.22 1.96 0.57 0.65 0.57 0.46 0.38 

All other loans and leases (including farm)............... 0.42 N/A N/A 0.58 0.42 0.39 0.38 0.51 0.43 0.44 0.49 

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

Percent of Loans Charged-off (net, annual) 

... 0.36 0.90 0.16 0.38 0.36 0.08 0.55 0.34 0.20 0.36 0.57 

All real estate loans............................................. 0.07 0.03 0.02 0.07 0.09 0.07 0.08 0.08 0.11 0.04 0.03 

Construction and development........................... 0.02 0.03 0.00 0.05 0.01 0.01 0.03 0.02 0.01 0.01 0.02 

Commercial real estate.................................... 0.04 0.02 0.01 0.03 0.06 0.05 0.03 0.06 0.03 0.03 0.02 

Multifamily residential real estate........................ -0.04 0.03 0.01 0.02 -0.07 -0.12 -0.01 -0.01 -0.03 0.03 0.00 

Home equity loans.......................................... 0.16 0.03 0.05 0.17 0.18 0.09 0.17 0.21 0.19 0.48 0.12 

Other 1-4 Family residential.............................. 0.10 0.04 0.04 0.09 0.12 0.07 0.10 0.09 0.21 0.05 0.11 

Commercial and industrial loans*........................... 0.52 0.22 0.27 0.48 0.56 0.57 0.46 0.38 0.50 0.55 0.84 

Loans to individuals............................................. 2.36 0.59 1.77 2.62 2.48 2.82 1.74 1.40 3.42 0.89 3.01 

Credit card loans............................................. 4.56 3.36 7.91 4.60 4.31 4.50 3.94 4.23 6.52 2.83 4.16 

Other loans to individuals................................. 1.03 0.47 0.55 0.98 1.21 1.17 1.06 0.99 0.58 0.82 1.16 

All other loans and leases (including farm)............... 0.17 N/A N/A 0.22 0.18 0.08 0.19 0.21 0.18 0.10 0.53 

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

Loans Outstanding (in billions) 

... 0.01 0.10 0.66 0.02 -0.01 0.08 -0.02 0.01 0.01 0.02 -0.07 

All real estate loans............................................. $1,561.4 $82.7 $310.7 $289.2 $878.7 $343.7 $525.0 $309.5 $117.1 $85.9 $180.1 

Construction and development........................... 142.4 6.6 32.5 30.9 72.5 14.5 53.4 27.2 12.5 11.4 23.5 

Commercial real estate.................................... 433.5 23.3 113.7 94.4 202.2 72.9 131.5 91.9 34.5 32.6 70.2 

Multifamily residential real estate........................ 57.3 1.8 10.6 11.3 33.6 15.0 15.3 12.0 3.7 2.7 8.6 

Home equity loans.......................................... 108.1 1.9 13.0 17.3 75.9 24.6 36.5 27.5 5.8 1.2 12.3 

Other 1-4 Family residential.............................. 755.0 38.4 127.9 131.5 457.2 186.6 279.0 142.9 50.4 34.5 61.7 

Commercial and industrial loans........................... 1,001.6 24.7 88.7 116.0 772.2 330.3 273.1 192.3 63.3 48.8 93.8 

Loans to individuals............................................. 556.5 19.9 64.1 109.3 363.2 203.9 117.6 77.4 50.0 33.4 74.2 

Credit card loans............................................. 207.5 0.7 10.4 48.9 147.5 100.5 27.5 9.1 23.7 1.3 45.4 

Other loans to individuals................................. 349.0 19.2 53.7 60.4 215.7 103.4 90.2 68.3 26.3 32.1 28.8 

All other loans and leases (including farm)............... 452.1 16.8 25.5 31.4 378.5 179.3 97.8 92.1 34.7 16.1 32.2 

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

Memo: Other Real Estate Owned (in millions) 

... 36.5 0.2 1.1 2.7 32.6 10.5 12.6 4.7 2.6 1.3 4.8 

All other real estate owned.................................... $2,762.8 $265.8 $663.8 $401.3 $1,431.9 $788.2 $795.4 $364.3 $198.6 $245.9 $370.5 

Construction and development........................... 208.4 25.8 91.3 33.8 57.5 39.9 82.2 21.1 16.1 16.1 32.9 

Commercial real estate.................................... 1,221.7 116.3 302.8 192.0 610.6 336.9 339.5 132.5 80.8 128.2 203.8 

Multifamily residential real estate........................ 45.5 6.6 20.1 15.2 3.6 9.6 7.0 9.4 4.5 4.5 10.4 

1-4 Family residential....................................... 1,025.5 85.9 221.7 153.7 564.3 213.3 359.0 191.4 71.4 77.6 112.8 

Farmland...................................................... 73.6 31.2 27.8 5.6 9.0 2.3 7.6 9.8 25.7 19.4 8.7 

Other real estate owned in foreign offices............ 188.1 0.0 0.0 1.0 187.0 186.1 0.0 0.0 0.0 0.0 2.0 

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

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

FDIC Quarterly Banking Profile 

First Quarter 2000 7 FDIC-Insured Commercial Banks 
SAVINGS INSTITUTION PERFORMANCE—FIRST QUARTER, 2000 

• Earnings Of $2.9 Billion Are Second Highest Quarterly Total 

• Rising Interest Rates Reduce Securities Portfolio Values 

• Profitability At Smaller Institutions Continues To Decline 

FDIC-insured savings institutions had earnings of 

$2.9 billion for the first quarter, the second highest 

quarterly earnings ever reported. This quarter’s 

earnings were just $12 million lower than the 

record set in the third quarter of 1998. Earnings 

were $259 million (10 percent) higher than in the 

first quarter of 1999, helped by increased 

noninterest income, up by $324 million (14 percent), and higher net interest income, up by $225 

million (3 percent). Noninterest expenses of $6.1 

billion were only $34 million (1 percent) higher than 

a year ago, and loan-loss provisions were only $25 

million (6 percent) higher. Income taxes were $189 

million lower than in the first quarter of 1999 mostly 

due to a tax benefit realized by one large 

institution.1 The industry’s earnings improvement 

was limited by a decline in gains on the sales of 

securities, which were $429 million (71 percent) 

lower than in the first quarter of 1999. Net 

operating income, which excludes gains on the 

sales of securities and extraordinary gains, was a 

record $2.8 billion this quarter, up by $537 million 

(24 percent) over last year’s first quarter. 

1 California Federal Bank, of San Francisco, California, recognized 

a $161.7-million tax benefit from a deferred tax asset during the 

first quarter. 

QUARTERLY NET INCOME, 1996–2000 

$ Billions 

Securities and Other Gains/Losses, Net 

2.5 2.6 

0.0 

2.2 2.4 2.4 

2.0 

2.3 

2.6 

2.9 2.9 

2.0 

2.7 

2.9 2.8 2.7 2.9 

Net Operating Income 

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

1996 1997 1998 1999 2000 

Total earnings improved from a year ago at 58 

percent of savings institutions. The average return 

on assets (ROA) was 1.03 percent, up from 0.98 

percent in the first quarter of 1999. Only the 

largest size group, those savings institutions with 

more than $5 billion in assets, reported higher 

average profitability, with an ROA of 1.12 percent, 

up from 0.97 percent a year ago. More than 8 percent of savings institutions reported losses for the 

quarter compared with 6 percent in the first quarter 

of 1999. Just 26 percent of savings institutions, 

representing approximately half of total industry 

assets, achieved an ROA of over 1 percent in the 

first quarter. 

Higher overhead expenses continue to adversely 

affect the profitability of small thrifts. Institutions 

with less than $100 million in assets reported an 

average ROA of 0.56 percent in the first quarter, 

down from 0.66 percent a year ago. Their noninterest expenses averaged 3.90 percent of 

earning assets, up from 3.52 percent in the same 

quarter last year. Over half (54 percent) of savings 

institutions in this group showed increases in their 

overhead expense ratios. Although the average 

net interest margin improved to 3.46 percent from 

3.33 percent a year ago, noninterest expenses 

absorbed a higher proportion of their revenues. 

The efficiency ratio — noninterest expense as a 

percent of net interest income plus noninterest 

income — worsened to 79 percent from 77 percent 

in the first quarter of 1999. Over 15 percent of the 

institutions in this asset size group were unprofitable, but more than one out of every ten small 

thrifts is three years old or less and start-up costs 

tend to depress earnings. 

Rising interest rates lifted both asset yields and the 

cost of funding earning assets by the same amount 

(9 basis points) during the first quarter, leaving net 

interest margins unchanged at 3.04 percent. For 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 First Quarter 2000 

0 
 

 

 

 

 

 

 

 

 

 

savings institutions with less than $1 billion in COVERAGE RATIO* AND RESERVE LEVELS, 

assets, the cost of funding earning assets rose 

faster than asset yields (by 4 basis points 

compared to 1 basis point). As a result, net 

interest margins declined at these institutions from 

3.42 percent in the fourth quarter of 1999 to 3.40 

percent this quarter. Larger savings institutions, 

with assets over $1 billion, showed a slight 

improvement in net interest margins from 2.92 

percent in the fourth quarter to 2.93 percent this 

quarter. For these larger institutions, asset yields 

rose (by 12 basis points) slightly faster than the 

cost of funding earning assets (up by 11 basis 

points). 

QUARTERLY NET INTEREST MARGINS, 

1996–2000 

Net Interest Margin (%) 

4.0 

3.5 

3.0 

2.5 

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

Assets > $1 Billion 

Assets < $1 Billion 

2.93 

3.40 

1996 1997 1998 1999 2000 

During the first quarter, reserves declined by $32 

million, while noncurrent loans declined (for the 

twelfth consecutive quarter) by $105 million. This 

resulted in an increase in the coverage ratio — 

loan loss reserves to noncurrent loans — from 125 

1996–2000 

$ Billions Coverage Ratio (%) 

30 

Noncurrent Loans ($) 

Loan-Loss Reserves ($) 

Coverage Ratio (%) 

140 

120 

24 

100 

18 80 

60 12 

40 

6 

20 

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

1996 1997 1998 1999 2000 

*Loan-loss reserves to noncurrent loans. 

ed by $6.8 billion while multifamily mortgages 

declined by $1.7 billion. Securities declined by 

$9.2 billion. 

The industry funded first-quarter asset growth with 

nearly equal proportions of deposits, up by $4.2 

billion, and other borrowed funds, up by $4.1 

billion. The increase in other borrowed funds 

consisted mainly of a $3.2-billion increase in 

Federal Home Loan Bank advances. Equity 

capital for the industry declined by $201 million 

during the quarter. Rising interest rates reduced 

the value of securities holdings, and a $387-million 

decline in the value of available-for-sale securities 

contributed to the decline in capital. Earnings 

retained by the industry, at $1.5 billion, helped limit 

the decline. The decline in capital, combined with 

RISK-BASED CAPITAL RATIOS, 

1994–2000 

Ratio (%) 

percent to 127 percent, the highest level recorded 

since all thrifts began reporting noncurrent loans in 

1990. The proportion of savings institutions’ loans 

that were noncurrent fell to a record low of 0.70 

percent, from 0.73 percent at the end of 1999. Net 

charge-offs were $52 million higher than last year, 

mostly due to lower recoveries on multifamily 

mortgages. The annualized net charge-off rate 

rose to 0.18 percent of loans from 0.16 percent a 

year ago. 

Industry assets grew by $7.3 billion in the first 

quarter as thrifts shifted resources into home 

mortgages. Holdings of home mortgages increas18 

16 

14 

12 

10 

8 

6 

4 

Total Risk-Based Capital 

Tier 1 Risk-Based Capital 

Equity to Assets 

Core Capital (Leverage) 

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

1994 1995 1996 1997 1998 1999 2000 

FDIC Quarterly Banking Profile 

First Quarter 2000 9 FDIC-Insured Savings Institutions 
growth in industry assets, caused the aggregate 

capital ratio to decline from 8.27 percent to 8.20 

percent. 

Structural changes in the first quarter included the 

migration of 12 thrifts, with $21.8 billion in assets, 

to the commercial banking industry. Commercial 

banks absorbed 9 thrifts with $19.6 billion in assets 

in mergers. One of these mergers involved the 

consolidation of a thrift charter with $14.3 billion in 

assets into a commercial bank affiliate. Another 3 

thrifts, with $2.2 billion in assets, converted their 

charters to commercial bank charters. In the first 

quarter 9 institutions were added to the industry: 5 

de novo institutions, 2 uninsured institutions that 

became insured, and 2 commercial banks that 

converted to thrift charters. Within the industry, 

mergers reduced the number of thrifts by 5. One 

insured savings institution failed during the first 

quarter. There were 8 thrifts with $873 million in 

assets that converted from mutual to stock 

ownership during the first quarter. The number of 

“problem” institutions rose to 15 from 13 at the end 

of 1999, but assets of “problem” institutions 

declined from $5.5 billion to $5.3 billion. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 First Quarter 2000 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

2000** 1999** 1999 1998 1997 1996 1995 

Return on assets (%)............................................. 1.03 0.98 1.00 1.01 0.93 0.70 0.77 

Return on equity (%)............................................. 12.53 11.36 11.72 11.35 10.84 8.40 9.40 

Core capital (leverage) ratio (%).............................. 7.79 7.87 7.86 7.85 7.95 7.76 7.80 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.57 0.68 0.58 0.72 0.95 1.09 1.20 

Net charge-offs to loans (%).................................... 0.18 0.16 0.17 0.22 0.25 0.32 0.34 

Asset growth rate (%)............................................. 4.18 6.68 5.57 6.06 -0.21 0.25 1.70 

Net interest margin................................................ 3.04 3.08 3.10 3.10 3.23 3.22 3.09 

Net operating income growth (%).............................. 23.53 7.61 16.59 7.70 20.07 -13.99 13.81 

Number of institutions reporting.............................. 1,633 1,668 1,641 1,689 1,780 1,925 2,030 

Percentage of unprofitable institutions (%).................. 8.27 6.00 8.29 5.27 4.10 12.05 5.86 

Number of problem institutions................................. 15 16 13 15 21 35 49 

Assets of problem institutions (in billions).................. $5 $5 $6 $6 $2 $7 $14 

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

** Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 31. 

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

(dollar figures in millions) 

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

Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

2000 1999 1999 99:1-00:1 

1,633 1,641 1,668 -2.1 

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

CONDITION DATA

... 244,711 244,009 240,336 1.8 

 Total assets..................................................................... $1,156,195 $1,148,934 $1,109,761 4.2

 Loans secured by real estate.......................................... 679,459 670,868 646,503 5.1 

1-4 Family Residential................................................... 539,437 532,685 518,762 4.0 

Multifamily residential property....................................... 53,935 55,596 54,228 -0.5 

Commercial real estate................................................... 55,422 53,487 49,033 13.0 

Construction, development, and land................................. 30,665 29,100 24,480 25.3

 Commercial & industrial loans.......................................... 29,416 27,067 22,381 31.4

 Loans to individuals...................................................... 59,590 59,179 54,068 10.2

 Other loans & leases...................................................... 4,666 4,780 3,625 28.7

 Less: Unearned income & contra accounts***..................... 199 205 179 11.3

 Total loans & leases......................................................... 772,933 761,689 726,400 6.4

 Less: Reserve for losses................................................... 6,875 6,907 6,979 -1.5

 Net loans & leases......................................................... 766,058 754,781 719,421 6.5

 Securities........................................................................ 282,289 291,451 287,916 -2.0

 Other real estate owned................................................... 1,152 1,124 1,529 -24.7

 Goodwill and other intangibles.......................................... 15,311 14,813 14,809 3.4

 All other assets............................................................... 91,385 86,765 86,085 6.2 

Total liabilities and capital................................................... 1,156,195 1,148,934 1,109,761 4.2

 Deposits........................................................................ 711,960 707,261 699,203 1.8

 Other borrowed funds...................................................... 331,384 327,243 291,648 13.6

 Subordinated debt............................................................ 3,018 3,019 3,066 -1.5

 All other liabilities............................................................ 15,063 16,440 20,149 -25.2

 Equity capital.................................................................. 94,770 94,971 95,696 -1.0 

Loans and leases 30-89 days past due................................. 6,288 6,723 6,768 -7.1 

Noncurrent loans and leases................................................ 5,429 5,535 6,046 -10.2 

Restructured loans and leases............................................. 1,637 1,680 2,307 -29.0 

Direct and indirect investments in real estate........................... 656 642 588 11.5 

Mortgage-backed securities................................................ 218,288 221,742 222,661 -2.0 

Earning assets.................................................................. 1,073,936 1,065,737 1,035,630 3.7 

FHLB Advances (Source: TFR and FHFB).............................. 235,345 231,465 185,098 27.1 

Unused loan commitments................................................... 203,387 176,038 189,703 7.2 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary 

Full Year Full Year 1st Quarter 1st Quarter %Change 

1999 1998 %Change 2000 1999 99:1-00:1 

$74,239 $71,085 4.4 $20,005 $18,424 8.6 

... 42,902 41,902 2.4 11,946 10,590 12.8

... 31,336 29,183 7.4 8,059 7,833 2.9 

... 1,563 1,772 -11.8 421 396 6.3 

9,790 9,200 6.4 2,653 2,329 13.9 

... 24,009 23,570 1.9 6,136 6,102 0.6 

1,436 2,458 -41.6 172 600 -71.4 

6,125 5,269 16.2 1,389 1,578 -12.0 

... 5 -83 N/M 6 -3 N/M

10,871 10,148 7.1 2,943 2,684 9.7 

... 1,195 1,459 -18.1 343 291 17.9 

... 6,101 6,566 -7.1 1,448 1,075 34.7

... 9,890 8,482 16.6 2,818 2,281 23.5 

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

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

FDIC Quarterly Banking Profile 

First Quarter 2000 11 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE III-B. First Quarter 2000, FDIC-Insured Savings Institutions 

FIRST QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

... 1,633 651 835 112 35 635 222 421 127 115 113 

Total assets (in billions)....................................... $1,156.2 $32.6 $244.4 $226.4 $652.8 $388.7 $79.0 $174.7 $42.2 $78.6 $393.0 

Total deposits (in billions).................................... 712.0 25.8 184.0 143.8 358.4 263.3 54.6 120.0 26.4 45.4 202.2 

Net income (in millions)....................................... 2,943.1 45.8 496.8 545.7 1,854.8 972.0 152.1 424.1 88.3 190.2 1,116.5 

% of unprofitable institutions................................. 8.3 15.2 4.0 2.7 0.0 4.7 10.8 10.7 15.0 7.8 7.1 

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

Performance ratios (annualized, %) 

... 57.5 55.3 58.4 57.1 77.1 63.1 56.8 51.1 55.1 57.4 54.0 

Yield on earning assets....................................... 7.55 7.47 7.54 7.71 7.51 7.45 7.85 7.78 7.49 7.92 7.42 

Cost of funding earning assets.............................. 4.51 4.01 4.14 4.51 4.68 4.13 4.56 4.59 4.63 4.80 4.76 

Net interest margin............................................. 3.04 3.46 3.39 3.20 2.83 3.32 3.30 3.19 2.87 3.12 2.66 

Noninterest income to earning assets..................... 1.00 1.43 0.69 0.94 1.12 0.83 1.40 1.45 0.85 1.18 0.88 

Noninterest expense to earning assets.................. 2.32 3.90 2.73 2.44 2.04 2.44 3.15 2.71 2.17 2.62 1.82 

Credit loss provision to assets*.............................. 0.15 0.08 0.10 0.27 0.13 0.10 0.29 0.33 0.11 0.28 0.06 

Net operating income to assets.............................. 0.99 0.55 0.77 0.90 1.12 0.96 0.73 0.93 0.86 0.94 1.12 

Return on assets................................................ 1.03 0.56 0.82 0.98 1.15 1.01 0.79 0.98 0.85 0.98 1.15 

Return on equity................................................ 12.53 4.49 7.91 11.76 16.07 10.74 8.59 11.33 8.79 12.06 17.62 

Net charge-offs to loans and leases........................ 0.18 0.07 0.08 0.38 0.15 0.10 0.22 0.32 0.10 0.26 0.16 

Credit loss provision to net charge-offs*.................. 122.67 183.77 170.51 103.32 128.23 155.24 189.30 135.50 148.56 152.23 58.50 

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

Condition Ratios (%) 

... 55.46 79.20 65.93 57.24 49.19 56.21 66.39 56.82 56.73 59.94 49.72 

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

Loss allowance to: 

92.89 94.01 93.95 93.18 92.33 92.65 93.19 91.71 93.63 92.76 93.53 

Loans and leases............................................. 0.89 0.72 0.84 0.98 0.88 0.99 0.82 0.76 0.63 0.83 0.92 

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

Noncurrent assets plus 

... 126.63 92.13 135.40 91.17 148.47 123.33 130.05 102.75 124.09 82.95 164.26 

other real estate owned to assets........................ 0.57 0.64 0.52 0.92 0.46 0.60 0.57 0.67 0.52 0.85 0.44 

Noncurrent RE loans to RE loans........................... 0.68 0.74 0.61 1.08 0.56 0.83 0.58 0.66 0.47 1.02 0.55 

Equity capital ratio............................................. 8.20 12.56 10.35 8.26 7.15 9.42 9.01 8.61 9.56 8.11 6.51 

Core capital (leverage) ratio................................. 7.79 12.38 10.14 7.99 6.62 8.72 8.85 7.96 8.92 8.12 6.42 

Tier 1 risk-based capital ratio................................. 13.03 22.96 17.30 12.87 11.08 14.55 14.45 12.48 16.10 12.03 11.35 

Total risk-based capital ratio................................. 14.26 23.93 18.43 14.02 12.38 15.87 15.93 13.69 16.85 13.12 12.50 

Gross real estate assets to gross assets.................. 77.33 69.39 71.72 74.10 80.95 71.04 72.03 74.16 78.59 66.51 88.06 

Gross 1-4 family mortgages to gross assets............ 46.37 49.84 46.69 41.71 47.70 41.15 46.21 55.22 51.89 34.19 49.49 

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

Structural Changes 

107.60 84.44 90.65 106.25 118.50 91.67 101.18 111.10 113.81 121.39 124.09 

New Charters................................................ 5 5 0 0 0 4 0 0 1 0 0 

Thrifts absorbed by mergers.............................. 13 5 5 2 1 5 1 6 1 0 0 

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

PRIOR FIRST QUARTERS**

 (The way it was...) 

... 1 1 0 0 0 0 1 0 0 0 0 

Number of institutions...............................1999 1,668 690 835 108 35 648 232 432 127 116 113 

...............................................1997 1,887 825 904 124 34 713 277 493 143 124 137 

...............................................1995 2,118 973 981 132 32 778 333 538 160 139 170 

Total assets (in billions).............................1999 $1,109.8 $35.7 $242.0 $215.0 $617.1 $366.1 $67.2 $178.1 $38.5 $72.0 $387.9 

................................................1997 1,022.2 42.8 267.7 260.4 451.3 336.3 64.6 176.8 50.7 61.6 332.3 

................................................1995 1,013.8 49.2 280.6 285.2 398.7 330.3 82.6 165.2 54.0 71.7 310.0 

Return on assets (%)................................1999 0.98 0.66 0.96 1.11 0.97 0.92 1.01 1.08 0.75 1.08 1.00 

................................................1997 0.96 0.76 0.95 1.11 0.89 0.98 0.89 1.01 1.10 1.07 0.87 

................................................1995 

Net charge-offs to loans & leases (%) 

0.69 0.76 0.76 0.57 0.71 0.88 0.82 0.82 0.99 0.77 0.31 

................................................1999 0.16 0.08 0.08 0.47 0.10 0.09 0.24 0.31 0.12 0.20 0.14 

................................................1997 0.27 0.07 0.11 0.48 0.27 0.27 0.46 0.24 0.04 0.43 0.25 

................................................1995 

Noncurrent assets plus 

0.30 0.07 0.14 0.32 0.44 0.36 0.10 0.09 0.25 0.16 0.45 

OREO to assets (%)***.....................1999 0.68 0.77 0.64 1.01 0.58 0.73 0.62 0.70 0.53 0.95 0.60 

................................................1997 1.10 0.90 0.96 1.35 1.05 1.29 0.99 0.66 0.70 1.06 1.23 

.................................................1995 1.33 1.07 1.18 1.48 1.36 1.78 1.00 0.51 0.65 1.25 1.52 

Equity capital ratio (%)..............................1999 8.62 12.13 10.79 9.11 7.40 9.74 10.03 9.20 10.28 8.29 6.96 

................................................1997 8.35 11.44 9.88 8.46 7.09 9.17 9.46 8.71 8.64 8.12 7.13 

................................................1995 8.06 10.24 9.19 8.14 6.95 8.73 8.69 8.76 8.16 7.00 7.05 

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

**1995 data do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 12 First Quarter 2000 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- South 

west west West 

... 1,641 664 830 113 34 637 224 427 126 115 112 

Total assets (in billions).................................... $1,148.9 $33.7 $244.9 $230.3 $640.0 $384.2 $76.0 $188.2 $41.4 $76.3 $383.0 

Total deposits (in billions).................................... 707.3 26.7 183.3 146.0 351.3 258.5 52.5 127.1 26.1 44.4 198.6 

Net income (in millions).................................... 10,870.8 205.3 1,995.0 2,276.4 6,394.1 3,737.8 539.0 1,751.5 323.7 816.5 3,702.3 

% of unprofitable institutions.............................. 8.3 15.1 3.7 4.4 0.0 5.0 10.3 11.0 9.5 11.3 8.0 

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

Performance Ratios (%) 

52.8 42.9 57.5 69.0 79.4 61.1 51.3 45.4 39.7 51.3 53.6 

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

Cost of funding earning assets........................... 4.24 3.93 3.99 4.19 4.37 3.95 4.23 4.37 4.41 4.42 4.41 

Net interest margin.......................................... 3.10 3.36 3.41 3.31 2.88 3.31 3.33 3.13 2.97 3.22 2.80 

Noninterest income to earning assets.................. 0.97 1.10 0.73 0.98 1.05 0.84 1.19 1.23 0.76 1.25 0.89 

Noninterest expense to earning assets.................. 2.37 3.45 2.82 2.54 2.07 2.48 3.11 2.66 2.32 2.76 1.91 

Credit loss provision to assets*........................... 0.14 0.09 0.11 0.27 0.12 0.10 0.26 0.24 0.11 0.26 0.10 

Net operating income to assets........................... 0.91 0.54 0.74 0.89 1.00 0.93 0.65 0.84 0.76 1.02 0.96 

Return on assets............................................. 1.00 0.62 0.85 1.04 1.06 1.02 0.78 0.98 0.83 1.14 1.02 

Return on equity................................................ 11.72 4.92 8.00 11.90 14.37 10.63 7.91 10.92 8.34 13.77 14.85 

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

Credit loss provision to net charge-offs*............... 130.79 147.26 154.65 144.89 114.70 155.25 155.45 150.06 108.73 137.47 92.73 

Efficiency ratio................................................ 56.44 76.79 67.17 57.56 50.24 57.45 68.02 58.61 60.44 60.62 49.97 

Condition Ratios (%) 

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

Loss allowance to: 

... 92.76 93.46 93.44 92.72 92.47 92.59 92.74 91.55 93.33 92.08 93.60 

Loans and leases.......................................... 0.91 0.74 0.85 1.13 0.86 1.00 0.84 0.81 0.63 0.81 0.94 

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

Noncurrent assets plus 

124.80 89.83 130.35 102.36 139.58 115.84 138.98 111.38 125.78 86.32 155.61 

other real estate owned to assets..................... 0.58 0.65 0.54 0.90 0.47 0.62 0.56 0.63 0.49 0.80 0.48 

Noncurrent RE loans to RE loans........................ 0.71 0.78 0.62 1.14 0.60 0.89 0.58 0.68 0.47 0.91 0.58 

Equity capital ratio............................................. 8.27 12.50 10.34 8.56 7.15 9.52 9.33 8.48 9.67 8.19 6.55 

Core capital (leverage) ratio................................. 7.86 12.31 10.08 8.20 6.64 8.90 9.12 7.77 8.99 8.16 6.42 

Tier 1 risk-based capital ratio.............................. 13.24 23.04 17.37 13.09 11.27 15.12 14.98 12.64 16.42 12.10 11.20 

Total risk-based capital ratio.............................. 14.48 24.04 18.51 14.42 12.52 16.47 16.50 13.87 17.19 13.17 12.36 

Gross real estate assets to gross assets............... 77.37 69.18 71.61 73.20 81.50 71.61 71.20 73.54 78.19 65.85 88.44 

Gross 1-4 family mortgages to gross assets............ 46.08 49.64 46.59 39.49 48.07 40.82 45.77 52.07 51.89 34.71 50.11 

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

Structural Changes 

106.72 84.05 90.73 103.18 118.26 90.78 100.12 107.94 112.13 120.58 124.61 

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

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

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

PRIOR FULL YEARS

 (The way it was...) 

1 1 0 0 0 0 1 0 0 0 0 

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

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

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

Total assets (in billions).............................1998 $1,088.4 $36.2 $245.0 $220.5 $586.7 $360.2 $66.4 $176.1 $36.7 $70.6 $378.5 

................................................1996 1028.3 43.7 270.1 258.3 456.2 345.4 63.2 175.8 50.3 78.3 315.3 

................................................1994 1008.6 50.4 286.0 292.2 379.9 330.9 82.1 155.5 53.1 70.8 316.1 

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

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

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

Net charge-offs to loans & leases (%) 

0.66 0.79 0.77 0.82 0.43 0.89 0.84 0.76 0.40 0.97 0.30 

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

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

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

Noncurrent assets plus 

0.51 0.10 0.23 0.49 0.79 0.49 0.16 0.11 0.15 0.29 0.86 

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

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

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

Equity capital ratio (%)..............................1998 8.68 12.32 10.74 9.03 7.47 9.80 10.16 9.16 9.64 8.20 7.14 

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

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

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

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

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

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

Rhode Island, Vermont, U.S. Virgin Islands

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

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

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

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

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

FDIC Quarterly Banking Profile 

First Quarter 2000 13 FDIC-Insured Savings Institutions 
TABLE V-B. Loan Performance, FDIC-Insured Savings Institutions 

March 31, 2000 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 0.75 1.53 0.89 0.79 0.63 0.73 0.86 0.79 1.03 0.95 0.65 

Construction, development, and land.................. 1.21 2.00 1.41 1.36 0.89 0.91 1.17 1.52 2.29 0.78 1.52 

Commercial real estate.................................... 0.69 1.24 0.77 0.84 0.44 0.82 0.82 0.67 0.89 0.77 0.29 

Multifamily residential real estate........................ 0.24 0.59 0.47 0.22 0.18 0.27 1.13 0.46 0.24 0.44 0.15 

Home equity loans.......................................... 0.44 0.56 0.70 0.35 0.34 0.63 0.32 0.48 0.45 0.05 0.16 

Other 1-4 Family residential.............................. 0.79 1.59 0.92 0.83 0.69 0.76 0.84 0.80 0.98 1.09 0.73 

Commercial and industrial loans........................... 1.23 2.39 1.39 1.33 1.00 0.77 1.64 2.65 1.81 0.81 1.46 

Loans to individuals............................................. 1.42 1.99 1.47 1.41 1.39 1.26 2.06 1.67 1.21 0.70 1.84 

Credit card loans............................................. 1.38 0.77 1.67 2.98 1.13 1.27 3.25 1.57 2.54 0.51 2.44 

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

Percent of Loans Noncurrent* 

1.44 2.03 1.47 1.14 1.53 1.26 1.88 1.73 1.15 0.85 1.72 

All real estate loans............................................. 0.68 0.74 0.61 1.08 0.56 0.83 0.58 0.66 0.47 1.02 0.55 

Construction, development, and land.................. 0.73 1.13 1.05 0.96 0.31 0.69 0.88 1.11 1.16 0.16 0.95 

Commercial real estate.................................... 0.86 0.78 0.69 1.28 0.67 1.11 0.62 0.61 0.47 0.82 0.59 

Multifamily residential real estate........................ 0.34 0.89 0.34 0.63 0.22 0.48 0.43 0.53 0.13 2.37 0.11 

Home equity loans.......................................... 0.21 0.11 0.21 0.23 0.21 0.27 0.09 0.27 0.11 0.02 0.14 

Other 1-4 Family residential.............................. 0.71 0.72 0.60 1.17 0.62 0.85 0.56 0.67 0.43 1.22 0.61 

Commercial and industrial loans........................... 1.18 1.83 0.95 1.37 1.12 0.80 1.08 1.79 1.64 1.90 1.22 

Loans to individuals............................................. 0.73 0.87 0.57 0.91 0.69 0.56 0.82 1.10 0.38 0.61 0.56 

Credit card loans............................................. 1.26 0.92 0.89 2.76 1.05 1.10 2.64 1.22 1.60 0.98 1.78 

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

Percent of Loans Charged-off (net, annual) 

0.55 0.87 0.56 0.60 0.50 0.47 0.53 1.03 0.32 0.33 0.31 

All real estate loans............................................. 0.03 0.01 0.03 0.05 0.03 0.03 0.02 0.08 0.05 -0.01 0.03 

Construction, development, and land.................. 0.06 -0.04 0.07 0.16 0.00 -0.04 -0.03 0.32 0.02 0.07 0.03 

Commercial real estate.................................... 0.00 0.01 0.03 0.05 -0.07 -0.01 -0.04 0.09 0.09 0.00 -0.03 

Multifamily residential real estate........................ -0.05 -0.02 0.01 -0.03 -0.08 0.01 -0.02 0.02 0.12 0.23 -0.12 

Home equity loans.......................................... 0.09 0.01 0.04 0.16 0.09 0.08 0.20 0.03 0.48 0.08 0.07 

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

Commercial and industrial loans........................... 0.43 0.75 0.43 0.73 0.24 0.13 1.81 0.57 0.50 0.26 0.49 

Loans to individuals............................................. 1.74 0.46 0.71 3.57 1.42 0.93 0.99 2.14 0.63 1.37 4.58 

Credit card loans............................................. 3.85 1.09 3.43 13.43 2.42 2.71 2.04 2.66 6.06 1.93 19.67 

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

Loans Outstanding (in billions) 

1.02 0.44 0.58 1.83 0.84 0.62 0.81 1.83 0.37 0.91 1.31 

All real estate loans............................................. $679.5 $19.8 $151.1 $132.6 $375.9 $208.6 $46.4 $114.1 $27.0 $41.6 $241.8 

Construction, development, and land.................. 30.7 1.0 8.7 8.5 12.4 6.0 4.8 5.0 1.9 7.8 5.3 

Commercial real estate.................................... 55.2 1.8 18.7 16.0 18.6 26.2 4.0 6.6 2.3 4.8 11.3 

Multifamily residential real estate........................ 53.9 0.6 8.8 12.9 31.7 15.4 0.9 5.4 0.9 1.9 29.4 

Home equity loans.......................................... 19.6 0.4 5.0 4.4 9.7 7.6 1.9 4.8 0.6 0.6 4.1 

Other 1-4 Family residential.............................. 519.8 15.9 109.8 90.6 303.5 153.4 34.8 92.2 21.4 26.5 191.5 

Commercial and industrial loans........................... 29.4 0.7 6.6 7.7 14.5 14.3 2.7 3.9 1.1 3.6 3.7 

Loans to individuals............................................. 59.6 1.4 10.0 12.8 35.3 19.2 6.4 14.8 2.1 10.1 7.0 

Credit card loans............................................. 15.0 0.0 0.4 1.9 12.6 2.8 0.9 5.7 0.1 4.4 1.2 

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

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

44.6 1.4 9.6 11.0 22.7 16.4 5.5 9.2 2.0 5.7 5.8 

All other real estate owned.................................... $1,151.9 $35.3 $228.4 $419.9 $468.3 $358.2 $100.1 $189.0 $67.2 $113.7 $323.6 

Construction, development, and land.................. 157.3 4.4 26.0 24.6 102.3 15.5 70.3 17.6 21.3 4.8 27.7 

Commercial real estate.................................... 285.7 7.3 57.9 162.9 57.5 128.3 9.7 40.4 21.9 38.3 47.0 

Multifamily residential real estate........................ 76.2 0.2 16.7 44.2 15.1 23.4 1.8 9.0 0.2 24.1 17.6 

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

Troubled Real Estate Asset Rates*** 

(% of total RE assets) 

676.1 23.9 131.7 201.9 318.6 204.8 38.1 124.0 26.3 48.3 234.5 

All real estate loans............................................. 0.85 0.92 0.76 1.40 0.69 1.00 0.79 0.83 0.72 1.29 0.68 

Construction, development, and land.................. 1.23 1.56 1.35 1.25 1.12 0.95 2.31 1.46 2.24 0.22 1.46 

Commercial real estate.................................... 1.37 1.18 0.99 2.28 0.98 1.59 0.87 1.21 1.43 1.60 1.01 

Multifamily residential real estate........................ 0.48 0.93 0.53 0.97 0.26 0.63 0.63 0.70 0.15 3.57 0.17 

1-4 family residential....................................... 0.82 0.85 0.70 1.33 0.71 0.95 0.64 0.78 0.54 1.38 0.72 

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

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 14 First Quarter 2000 
ALL FDIC-INSURED INSTITUTIONS 

• BIF Reverses Recent Losses But Its Reserve Ratio Falls To 1.35 Percent 

• SAIF Remains Unchanged At 1.44 Percent Of Insured Deposits 

• One BIF Member And One SAIF Member Fail In The First Quarter 

After declining for three consecutive quarters, the 

Bank Insurance Fund (BIF) grew to $29.7 billion 

(unaudited) as of March 31, 2000. This was 

$325 million higher than the revised year-end 

1999 balance of $29.4 billion, but the fund still 

lagged below the March 1999 balance of $29.9 

billion. Despite the first-quarter growth of the 

fund (1.1 percent), BIF-insured deposits grew at 

a faster rate (1.9 percent), and the BIF reserve 

ratio fell to 1.35 percent of estimated insured 

deposits on March 31, from 1.37 percent at yearend and 1.41 percent in March 1999. Though 

still well above the statutory minimum of 1.25 

percent, the BIF reserve ratio is at its lowest level 

since June 1997. The Savings Association 

Insurance Fund (SAIF) also grew during the first 

quarter of 2000, rising by $154 million (1.5 

percent) to $10.4 billion (unaudited). This rate of 

growth kept pace with the growth of SAIFinsured deposits, and the SAIF reserve ratio, at 

1.44 percent, was unchanged from year-end. 

Two FDIC-insured institutions failed during the 

first quarter of 2000. These included one BIF 

member, with total assets of $113 million, and 

one SAIF member, with total assets of $30 

million. The failures are expected to cost the BIF 

and the SAIF approximately $19 million and $1 

million, respectively. 

The total assets of the 10,171 FDIC-insured 

institutions surpassed $7 trillion for the first time 

during the first quarter of 2000, reaching $7.012 

trillion as of March 31, 2000. This represented 

growth of 1.7 percent during the first quarter and 

7.4 percent since March 1999. Assets grew by 

$119 billion during the first three months of 2000, 

the majority of which was funded by domestic 

deposit growth, up $69 billion. Foreign-office 

deposits, on the other hand, declined by $16 

billion. Asset growth also was funded by 

increases in federal funds purchased and 

reverse repurchase agreements, up $37 billion, 

and Federal Home Loan Bank advances, up $9 

billion. 

Total insured deposits increased by $51 billion, or 

1.8 percent, during the first three months of 

2000. However, despite this increase, insured 

institutions in general continue to pursue alternative funding sources. As a result, insured 

deposits fell to 52.5 percent of domestic 

liabilities, a downward trend which dates back to 

early 1992, when the ratio topped 70 percent. As 

seen in the chart below, reliance on insured 

deposits has declined for large and small 

institutions alike, but there is a sharp distinction 

between size categories. On average, institutions with total assets of less than $1 billion still 

rely predominantly (74.8 percent) on retail 

deposits for funding, whereas for larger 

institutions this proportion has fallen well below 

half (46.7 percent). 

INSURED DEPOSITS AS A PERCENTAGE OF 

DOMESTIC LIABILITIES, 1990–2000 Percent 

100 

90 

80 

70 

60 

50 

40 

12/90 12/91 12/92 12/93 12/94 12/95 12/96 12/97 12/98 12/99 3/00 

Assets > $1 Billion 

46.7% 

Assets < $1 Billion 

74.8% 

61.8% 

84.9% 

FDIC Quarterly Banking Profile 

First Quarter 2000 15 All FDIC-Insured Institutions 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(dollar figures in millions) 2000** 1999** 1999 1998 1997 1996 1995 

Number of institutions reporting.............................. 10,151 10,390 10,221 10,463 10,922 11,452 11,970 

Total assets.........................................................$ 7,003,329 $6,521,557 $6,883,681 $6,530,891 $6,041,136 $5,606,608 $5,338,418 

Total deposits...................................................... 4,590,251 4,336,540 4,538,036 4,386,298 4,125,862 3,925,058 3,769,480 

Number of problem institutions................................. 87 80 79 84 92 117 193 

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

Number of failed/assisted institutions........................ 2 1 8 3 1 6 8 

Assets of failed/assisted institutions (in billions)......... $0.15 $0.01 $1.56 $0.37 $0.03 $0.22 $1.21 

** As of March 31. 

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

(dollar figures in millions) 

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

Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

2000 1999 1999 99:1-00:1 

 10,151 10,221 10,390 -2.3 

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

CONDITION DATA 

... 1,893,663 1,901,527 1,860,214 1.8 

Total assets..................................................................... $7,003,330 $6,883,682 $6,521,557 7.4

 Loans secured by real estate.......................................... 2,240,814 2,180,853 1,993,168 12.4 

1-4 Family residential................................................... 1,402,504 1,371,840 1,267,552 10.6 

Home equity loans...................................................... 127,681 121,329 112,414 13.6 

Multifamily residential property....................................... 111,209 108,731 99,694 11.6 

Commercial real estate................................................... 488,667 470,855 429,526 13.8 

Construction, development, and land................................. 173,079 164,721 136,404 26.9 

Other real estate loans................................................... 65,355 64,707 59,992 8.9 

Commercial & industrial loans 1,031,052 998,066 943,955 9.2

 Loans to individuals...................................................... 616,077 617,527 602,679 2.2

 Credit cards & related plans.......................................... 222,440 227,334 220,345 1.0

 Other loans & leases...................................................... 456,809 460,363 441,721 3.4

 Less: Unearned income & contra accounts........................ 3,452 3,876 4,027 -14.3

 Total loans & leases......................................................... 4,341,301 4,252,933 3,977,496 9.1

 Less: Reserve for losses................................................... 66,761 65,731 64,862 2.9 

Net loans and leases......................................................... 4,274,540 4,187,203 3,912,634 9.2 

Securities........................................................................ 1,339,544 1,337,800 1,283,567 4.4 

Other real estate owned...................................................... 3,915 3,918 4,667 -16.1 

Goodwill and other intangibles............................................. 116,628 112,858 98,151 18.8 

All other assets.................................................................. 1,268,703 1,241,904 1,222,538 3.8 

Total liabilities and capital................................................... 7,003,330 6,883,682 6,521,557 7.4

 Deposits....................................................................... 4,590,251 4,538,036 4,336,541 5.9

 Other borrowed funds...................................................... 1,420,539 1,376,070 1,228,776 15.6

 Subordinated debt............................................................ 81,952 79,469 76,429 7.2

 All other liabilities............................................................ 324,033 315,362 314,513 3.0

 Equity capital.................................................................. 586,554 574,745 565,299 3.8 

Loans and leases 30-89 days past due................................. 46,086 46,449 45,813 0.6 

Noncurrent loans and leases................................................ 40,022 38,540 38,264 4.6 

Restructured loans and leases............................................. 2,770 2,826 3,836 -27.8 

Direct and indirect investments in real estate........................... 936 921 1,107 -15.5 

Mortgage-backed securities................................................ 680,167 676,205 678,545 0.2 

Earning assets.................................................................. 6,120,718 6,013,122 5,710,032 7.2 

FHLB Advances (Source: TFR and FHFB).............................. 396,155 386,872 293,239 35.1 

Unused loan commitments................................................... 4,267,471 4,145,690 3,923,730 8.8 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

Preliminary 

Full Year Full Year 1st Quarter 1st Quarter %Change 

1999 1998 %Change 2000 1999 99:1-00:1 

$441,566 $433,108 2.0 $120,352 $108,673 10.7 

... 218,029 221,168 -1.4 62,214 53,457 16.4

... 223,537 211,940 5.5 58,138 55,216 5.3 

... 23,370 23,990 -2.6 6,203 5,813 6.7 

154,198 132,900 16.0 41,069 37,062 10.8 

... 228,166 217,686 4.8 58,081 55,742 4.2 

1,617 5,585 -71.0 -559 1,166 N/M 

45,520 37,226 22.3 11,895 11,201 6.2 

... 174 424 -59.0 22 -37 N/M

82,470 71,947 14.6 22,492 20,650 8.9 

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

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 16 First Quarter 2000 
 

 

 

 

 

0 

TABLE III-C. Selected Insurance Fund Indicators* 

(dollar figures in millions) Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

2000 1999 1999 99:1-00:1 

Bank Insurance Fund 

Reserve ratio (%)..................................................................... 1.35 1.37 1.41 -4.4 

Fund balance (unaudited)............................................................ $29,739 $29,414 $29,852 -0.4 

Estimated insured deposits......................................................... 2,194,918 2,153,519 2,123,564 3.4 

SAIF-member Oakars............................................................... 47,108 43,378 39,906 18.0 

BIF-members........................................................................ 2,147,810 2,110,141 2,083,658 3.1 

Assessment base..................................................................... 3,089,701 3,034,397 2,939,584 5.1 

SAIF-member Oakars............................................................... 48,780 45,110 42,445 14.9 

BIF-members........................................................................ 3,040,921 2,989,287 2,897,139 5.0 

Savings Association Insurance Fund 

Reserve ratio (%)..................................................................... 1.44 1.44 1.41 2.1 

Fund balance (unaudited)............................................................ $10,435 $10,281 $9,937 5.0 

Estimated insured deposits......................................................... 724,992 715,531 707,143 2.5 

BIF-member Oakars............................................................... 280,873 266,680 261,381 7.5 

SAIF-member Sassers............................................................ 72,179 70,660 66,472 8.6 

Other SAIF members............................................................... 371,940 378,191 379,290 -1.9 

Assessment base..................................................................... 784,119 768,510 750,597 4.5 

BIF-member Oakars............................................................... 281,376 267,249 261,787 7.5 

SAIF-member Sassers............................................................ 83,303 80,797 73,746 13.0 

Other SAIF members............................................................... 419,440 420,464 415,064 1.1 

 Insurance Fund Reserve Ratios* Fund Balances and Insured Deposits* 

 Percent of Insured Deposits ($ Millions) 

1.25 

12/93 12/94 12/95 12/96 12/97 12/98 12/99 3/00 

. 

0.69 

1.15 

1.30 1.34 1.38 1.39 1.37 1.35 

0.17 

0.28 

0.47 

1.30 

1.36 1.37 

1.44 1.44 

BIF 

SAIF 

Target Ratio 

BIF BIF-Insured SAIF SAIF-Insured 

Balance Deposits Balance Deposits 

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

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

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

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

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

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

3/99 29,852 2,123,564 9,937 707,143 

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

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

12/99 29,414 2,153,519 10,281 715,531 

3/00 29,739 2,194,918 10,435 724,992 

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

may reflect adjustments. As a result, prior period reserve ratios may differ from previously reported values. Fund balances in 

2000 are unaudited. BIF-insured deposit totals include U.S. branches of foreign banks. 

TABLE IV-C. Closed/Assisted Institutions 

(dollar figures in millions) 

2000* 1999* 1999 1998 1997 1996 1995 

BIF Members 

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

Total assets........................................................................... $113 $12 $1,424 $370 $26 $183 $753 

SAIF Members 

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

Total assets........................................................................... $30 $0 $63 $0 $0 $35 $456 

* Through March 31. 

17 

FDIC Quarterly Banking Profile 

First Quarter 2000 All FDIC-Insured Institutions
 

 

 

 

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

(dollar figures in millions) 2000** 1999** 1999 1998 1997 1996 1995 

BIF Members 

Number of institutions reporting................................................ 8,771 8,976 8,834 9,031 9,404 9,823 10,243 

BIF-member Oakars............................................................... 721 738 732 745 778 793 807 

Other BIF-members............................................................... 8,050 8,238 8,102 8,286 8,626 9,030 9,436 

Total assets...........................................................................$ 6,095,467 $5,677,609 $5,980,132 $5,702,714 $5,285,411 $4,857,761 $4,577,897 

Total deposits........................................................................ 4,034,514 3,797,585 3,987,333 3,843,816 3,611,453 3,404,203 3,225,649 

Net income........................................................................... 20,151 18,589 74,009 64,349 61,462 54,483 50,779 

Return on assets (%)............................................................... 1.33 1.30 1.30 1.18 1.22 1.17 1.15 

Return on equity (%)............................................................... 15.84 15.14 15.12 13.81 14.44 14.14 14.32 

Noncurrent assets plus OREO to assets (%)................................. 0.63 0.66 0.62 0.64 0.67 0.77 0.89 

Number of problem institutions................................................... 72 64 66 68 73 86 151 

Assets of problem institutions................................................... $5,143 $4,652 $4,450 $5,326 $4,598 $6,624 $20,166 

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

Assets of failed/assisted institutions............................................. $113 $12 $1,424 $370 $26 $183 $753 

SAIF Members 

Number of institutions reporting................................................ 1,380 1,414 1,387 1,432 1,518 1,629 1,727 

SAIF-member Oakars............................................................ 121 115 121 116 112 94 77 

Other SAIF-members............................................................ 1,259 1,299 1,266 1,316 1,406 1,535 1,650 

Total assets........................................................................... $907,862 $843,947 $903,548 $828,177 $755,724 $748,847 $760,520 

Total deposits........................................................................ 555,736 538,955 550,703 542,481 514,408 520,854 543,831 

Net income........................................................................... 2,340 2,060 8,460 7,597 6,485 4,883 5,584 

Return on assets (%)............................................................... 1.04 0.99 0.99 0.98 0.94 0.67 0.76 

Return on equity (%)............................................................... 13.10 11.77 11.99 11.34 11.13 8.07 9.47 

Noncurrent assets plus OREO to assets (%)................................. 0.63 0.76 0.64 0.80 0.98 1.07 1.12 

Number of problem institutions................................................... 15 16 13 16 19 31 42 

Assets of problem institutions................................................... $5,325 $5,122 $5,524 $5,992 $1,662 $5,548 $10,864 

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

Assets of failed/assisted institutions............................................. $30 $0 $63 $0 $0 $35 $456 

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

** Through March 31, ratios annualized where appropriate. 

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

(dollar figures in millions) 

March 31, 2000 

Commercial Banks and Savings Institutions 

Number of Total Domestic 

Institutions Assets Deposits* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks............................................. 8,518 $5,847,134 $3,238,803 $1,993,438 $287,960 2,281,398 

BIF-member..................................................................... 8,406 5,759,461 3,177,576 1,978,125 253,484 2,231,609 

SAIF-member..................................................................... 112 87,673 61,226 15,313 34,476 49,789 

FDIC-Supervised............................................................... 5,196 1,060,699 775,466 515,233 66,775 582,008 

OCC-Supervised............................................................... 2,327 3,301,994 1,785,510 1,096,400 164,822 1,261,222 

Federal Reserve-Supervised................................................ 995 1,484,442 677,826 381,805 56,363 438,168 

FDIC-Insured Savings Institutions............................................. 1,633 1,156,195 711,960 200,159 437,032 637,190 

OTS-Supervised Savings Institutions....................................... 1,097 868,744 514,250 77,467 381,339 458,805 

BIF-member..................................................................... 42 109,023 61,831 46,982 9,399 56,381 

SAIF-member..................................................................... 1,055 759,720 452,419 30,485 371,940 402,424 

FDIC-Supervised State Savings Banks.................................... 536 287,452 197,710 122,692 55,693 178,385 

BIF-member..................................................................... 323 226,983 155,678 121,382 17,990 139,372 

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

Total Commercial Banks and 

... 213 60,469 42,032 1,310 37,703 39,013 

Savings Institutions................................................... 10,151 7,003,330 3,950,763 2,193,597 724,992 2,918,588 

BIF-member........................................................................ 8,771 6,095,467 3,395,085 2,146,489 280,873 2,427,361 

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

Other FDIC-Insured Institutions 

 1,380 907,862 555,677 47,108 444,119 491,227 

U.S. Branches of Foreign Banks............................................. 20 9,151 3,681 1,322 0 1,322 

Total FDIC-Insured Institutions....................................... 10,171 7,012,481 3,954,444 2,194,918 724,992 2,919,910

 Excludes $639 billion in foreign office deposits, which are uninsured. 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 18 First Quarter 2000 
TABLE VII-C. Assessment Base Distribution and Rate Schedules 

BIF Assessment Base Distribution 

Assessable Deposits in Millions as of March 31, 2000 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2000 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

8,160 

 $2,993,055 

 171 

 $25,596 

 2 

 $86 

92.8% 

96.9% 

1.9% 

0.8% 

0.0% 

0.0% 

364 4.1% 

$60,498 2.0% 

14 0.2% 

$1,547 0.1% 

0 0.0% 

$0 0.0% 

60 

$6,802 

11 

$1,168 

9 

$672 

0.7% 

0.2% 

0.1% 

0.0% 

0.1% 

0.0% 

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

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

by on-site examinations. 

SAIF Assessment Base Distribution 

Assessable Deposits in Millions as of March 31, 2000 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2000 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

 1,242 

 $749,637 

 21 

 $4,004 

 0 

 $0 

90.0% 

95.6% 

1.5% 

0.5% 

0.0% 

0.0% 

91 6.6 % 

$22,260 2.8 % 

8 0.6 % 

$2,007 0.3 % 

0 0.0 % 

$0 0.0 % 

14 

$3,861 

3 

$2,255 

1 

$96 

1.0% 

0.5% 

0.2% 

0.3% 

0.1% 

0.0% 

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

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

by on-site examinations. 

Assessment Rate Schedules 

Second Semiannual 2000 Assessment Period 

Cents Per $100 of Assessable Deposits 

Capital Group 

Supervisory Risk Subgroup 

A B C 

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

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

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

 0 

 3 

 10 

3 

10 

24 

17 

24 

27 

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

Currently, the rate schedules are identical. 

FDIC Quarterly Banking Profile 

First Quarter 2000 19 All FDIC-Insured Institutions 
Number of FDIC-Insured "Problem" Institutions 

1992 - 2000 

Number of Institutions 

0 

500 

1,000 

1,500

1,063 

Savings Institutions

Commercial Banks

572 

318 

193 

117 92 84 82 88 84 80 76 80 79 87 

Savings Institutions 

12/92 12/93 12/94 12/95 12/96 12/97 3/98 6/98 9/98 12/98 3/99 6/99 9/99 12/99 3/00 

Savings Institutions 276 146 71 49 35 21 16 18 18 15 16 14 11 13 15 

Commercial Banks 787 426 247 144 82 71 68 64 70 69 64 62 69 66 72

Assets of FDIC-Insured "Problem" Institutions 

1992 - 2000 

$ Billions 

0 

200 

400 

600 

800

$592 

Savings Institutions

Commercial Banks

$334 

$72 

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

Savings Institutions 

12/92 12/93 12/94 12/95 12/96 12/97 3/98 6/98 9/98 12/98 3/99 6/99 9/99 12/99 3/00 

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

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

FDIC Quarterly Banking Profile All FDIC-Insured Institutions 20 First Quarter 2000 
NOTES TO USERS 

This publication contains financial data and other information 

for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding the 

comparability of source data and reporting differences over 

time. The information presented in the FDIC Quarterly Banking Profile is divided into the following groups of institutions: 

FDIC-Insured Commercial Banks 

(Tables I-A through V-A.) 

This section covers commercial banks insured by the FDIC 

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

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

the three federal commercial bank regulators (the Board of 

Governors of the Federal Reserve System, the FDIC or the 

Office of the Comptroller of the Currency). 

FDIC-Insured Savings Institutions 

(Tables I-B through V-B.) 

This section covers savings institutions insured by either BIF 

or SAIF that operate under state or federal banking codes 

applicable to thrift institutions, except for one self-liquidating 

institution primarily funded by the FSLIC Resolution Fund 

(FRF). Savings institutions in Resolution Trust Corporation 

conservatorships are also excluded from these tables while 

in conservatorship, where applicable. The institutions covered in this section are regulated by and submit financial 

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

Office of Thrift Supervision (OTS). 

FDIC-Insured Institutions by Insurance Fund 

(Tables I-C through VII-C.) 

Summary balance-sheet and earnings data are provided for 

commercial banks and savings institutions according to 

insurance fund membership. BIF-member institutions may 

acquire SAIF-insured deposits, resulting in institutions with 

some deposits covered by both insurance funds. Also, SAIF 

members may acquire BIF-insured deposits. The insurance 

fund membership does not necessarily reflect which fund 

insures the largest percentage of an institution’s deposits. 

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

each include deposits from both insurance funds. Depository 

institutions that are not insured by the FDIC through either 

the BIF or SAIF are not included in the FDIC Quarterly 

Banking Profile. U.S. branches of institutions headquartered 

in foreign countries and non-deposit trust companies are not 

included unless otherwise indicated. Efforts are made to 

obtain financial reports for all active institutions. However, in 

some cases, final financial reports are not available for institutions that have closed or converted their charter. 

DATA SOURCES 

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Call Reports and the OTS 

Thrift Financial Reports submitted by all FDIC-insured 

depository institutions. This information is stored on and 

retrieved from the FDIC’s Research Information System 

(RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting 

and accounting requirements of the FFIEC Call Reports. 

Beginning in March 1997, both Thrift Financial Reports and 

Call Reports are completed on a fully consolidated basis. 

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

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

subsidiary institution reports are included in the Quarterly 

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

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

All asset and liability figures used in calculating performance 

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

periods, divided by the total number of periods). For “poolingof-interest” mergers, the assets of the acquired institution(s) 

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

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

rates represent the percentage change over a 12-month 

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

institutions in the current period. 

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

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

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

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

ACCOUNTING CHANGES 

Adoption of GAAP Reporting — Effective with the March 

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

New reporting instructions for 1997 and 1998 changed the 

amounts reported for a number of items used in the 

Quarterly Banking Profile, so that comparability with prior 

periods may be affected. Among the items most significantly 

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

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

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

March 1997 and in March 1998 is contained in Financial 

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

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

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

Information on changes to the March 31, 1997 Thrift 

Financial Reports is available from the Office of Thrift 

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

telephone (202) 906-5900. 

Subchapter S Corporations — The Small Business Job 

Protection Act of 1996 changed the Internal Revenue Code 

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

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

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

federal income taxes at the corporate level. Its taxable 

income flows through to its shareholders in proportion to their 

FDIC Quarterly Banking Profile 

First Quarter 2000 21 Notes to Users 
stock ownership, and the shareholders generally pay federal 

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

have the effect of reducing institutions’ reported taxes and 

increasing their after-tax earnings. 

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

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

DEFINITIONS (in alphabetical order) 

All other assets — total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

estate, investment in unconsolidated subsidiaries, customers’ liability on acceptances outstanding, assets held in trading accounts, federal funds sold, securities purchased with 

agreements to resell, and other assets. 

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

sheet credit losses, and other liabilities. 

Assessment base distribution — each institution’s capital 

category is calculated or estimated from its financial report 

and does not reflect supervisory upgrades or downgrades: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) Capital * Capital * Leverage Equity 

Well-capitalized >10 and >6 and >5 — 

Adequately 

capitalized >8 and >4 and >4 — 

Undercapitalized >6 and >3 and >3 — 

Significantly 

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

Critically 

undercapitalized — — — <2 

*As a percentage of risk-weighted assets. 

For purpose of BIF and SAIF assessments, risk-based 

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

risk subgroup assignments are based on supervisory ratings. 

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

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

are in subgroup C. 

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

attributable amount acquired from BIF members. 

Construction and development loans — includes loans 

for all property types under construction, as well as loans for 

land acquisition and development. 

Core capital — common equity capital plus noncumulative 

perpetual preferred stock plus minority interest in consolidated subsidiaries, less goodwill and other ineligible intangible 

assets. The amount of eligible intangibles (including servicing rights) included in core capital is limited in accordance 

with supervisory capital regulations. 

Cost of funding earning assets — total interest expense 

paid on deposits and other borrowed money as a percentage 

of average earning assets. 

Direct and indirect investments in real estate — excludes 

loans secured by real estate and property acquired through 

foreclosure. 

Earning assets — all loans and other investments that earn 

interest or dividend income. 

Efficiency Ratio — Noninterest expense less amortization 

of intangible assets as a percent of net interest income plus 

noninterest income. This ratio measures the proportion of net 

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

Estimated insured deposits — estimated amount of 

insured deposits (account balances less than $100,000). 

The sum of all deposit balances in accounts of less than 

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

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

Failed/assisted institutions — an institution fails when regulators take control of the institution, placing the assets and 

liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the FDIC 

to provide funds to cover losses. An institution is defined as 

“assisted” when the institution remains open and receives 

some insurance funds in order to continue operating. 

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

furnished by the Federal Housing Finance Board (FHFB) for 

Call filers and reported by TFR filers. 

Goodwill and other intangibles — intangible assets 

include servicing rights, purchased credit card relationships 

and other identifiable intangible assets. 

Loans secured by real estate — includes home equity 

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

and all other loans secured by real estate. 

Loans to individuals — includes outstanding credit card 

balances and other secured and unsecured consumer loans. 

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

with remaining maturities or repricing intervals of over five years. 

Mortgage-backed securities — certificates of participation 

in pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored 

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

Net charge-offs — total loans and leases charged off 

(removed from balance sheet because of uncollectibility), 

less amounts recovered on loans and leases previously 

charged off. 

Net interest margin — the difference between interest and 

dividends earned on interest-bearing assets and interest 

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

made for interest income that is tax exempt. 

Net operating income — income excluding discretionary 

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

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

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

in nonaccrual status. 

Noncurrent loans & leases — the sum of loans and leases 

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

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

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

following: interest-rate contracts (defined as the notional 

FDIC Quarterly Banking Profile 

Notes to Users 22 First Quarter 2000 
value of interest-rate swap, futures, forward and option contracts), foreign-exchange-rate contracts, commodity contracts and equity contracts (defined similarly to interest-rate 

contracts). 

Futures and forward contracts — a contract in which the 

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

specified future date, a specific quantity of an underlying variable or index at a specified price or yield. These contracts 

exist for a variety of variables or indices, (traditional agricultural or physical commodities, as well as currencies and interest rates). Futures contracts are standardized and are traded 

on organized exchanges which set limits on counterparty 

credit exposure. Forward contracts do not have standardized 

terms and are traded over the counter. 

Option contracts — a contract in which the buyer acquires 

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

amount of an underlying variable or index at a stated price 

(strike price) during a period or on a specified future date, in 

return for compensation (such as a fee or premium). The seller is obligated to purchase or sell the variable or index at the 

discretion of the buyer of the contract. 

Swaps — an obligation between two parties to exchange a 

series of cash flows at periodic intervals (settlement dates), 

for a specified period. The cash flows of a swap are either 

fixed, or determined for each settlement date by multiplying 

the quantity (notional principal) of the underlying variable or 

index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each 

payment but is not exchanged. 

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

issued to the U.S. Treasury, FHLB advances, other borrowed 

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

assets held in trading accounts. 

Other real estate owned — primarily foreclosed property. 

Direct and indirect investments in real estate ventures are 

excluded. The amount is reflected net of valuation 

allowances. For institutions that file a Thrift Financial Report 

(TFR), the valuation allowance subtracted also includes 

allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported 

gross of valuation allowances. 

Percent of institutions with earnings gains — the percent 

of institutions that increased their net income (or decreased 

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

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

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

concern. “Problem” institutions are those institutions with 

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

degree of risk and supervisory concern, they are rated either 

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

SAIF-member institutions whose primary federal regulator is 

the OTS, the OTS composite rating is used. 

Reserves for losses — the allowance for loan and lease 

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

Financial Report (TFR) included specific reserves, while Call 

Report filers included only general valuation allowances. 

Beginning March 31, 1997, TFR reporters net these specific 

reserves against each loan balance. Also beginning March 

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

included in the general valuation allowance. 

Restructured loans and leases — loan and lease financing 

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

compliance with the modified terms. 

Return on assets — net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total assets. The basic yardstick of bank profitability. 

Return on equity — net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total equity capital. 

Risk-weighted assets — assets adjusted for risk-based 

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

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

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

assign a balance sheet equivalent amount for selected offbalance-sheet accounts. 

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

attributable amount acquired from SAIF members. 

Securities — excludes securities held in trading accounts. 

Banks’ securities portfolios consist of securities designated 

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

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

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

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

adjustments for income taxes. Thrift Financial Report (TFR) 

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

for sale. 

Troubled real estate asset rate — noncurrent real estate 

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

estate loans and other real estate owned. 

Unearned income & contra accounts — unearned income 

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

1997, TFR filers net the unearned income and the loans-inprocess against each loan balance, leaving just the 

unearned income on loans reported by Call Report filers. 

Unused loan commitments — includes credit card lines, 

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

commitments to originate or purchase loans. 

Volatile liabilities — the sum of large-denomination time 

deposits, foreign-office deposits, federal funds purchased, 

securities sold under agreements to repurchase, and other 

borrowings. 

Yield on earning assets — total interest, dividend and fee 

income earned on loans and investments as a percentage of 

average earning assets. 

FDIC Quarterly Banking Profile 

First Quarter 2000 23 Notes to Users