Donna Tanoue, Chairman 

Second Quarter 1999 

Division of Research 

& Statistics 

Don Inscoe 

Associate Director 

Statistics Branch 

(202) 898-3940 

Tim Critchfield 

(202) 898-8557 

Jim McFadyen 

(202) 898-7027 

Ross Waldrop 

(202) 898-3951 

COMMERCIAL BANKING PERFORMANCE—SECOND QUARTER, 1999 

• Quarterly Profit Of $17 Billion Is Second-Best Ever 

• Merger-Related Charges Reduce Industry Earnings 

• Asset Quality Indicators Improve 

• Net Interest Margins Stabilize As Interest Rates Rise 

Insured commercial banks earned $17.0 billion in the second quarter of 1999, a $1.0-billion decline from the record earnings of the 

first quarter, but an $854-million (5.3 percent) 

improvement over the second quarter of 1998. 

Industry profits would have surpassed last 

quarter’s record $18 billion, but for a $1.5-billion net loss posted by one large bank that 

was acquired during the quarter.1 The average return on assets (ROA) in the second 

quarter was 1.25 percent, unchanged from a 

year ago, but down from 1.32 percent in the 

first quarter. Almost two out of every three 

banks—63.6 percent—reported an ROA of 1 

percent or higher in the second quarter, but 

more than half of all banks—52.3 percent— 

reported ROAs that were lower than a year 

ago. For the first six months of 1999, comQUARTERLY NET INCOME, 

1995–1999 

$ Billions 

Securities and Other Gains, Net 18.0 

17.0 Net Operating Income 16.1 

15.3 15.9 

15.0 14.6 14.7 14.8 

13.8 14.5 13.8 13.7 13.2 

12.0 12.0 

11.1 

12.0 

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

1995 1996 1997 1998 1999 

mercial banks’ earnings totaled $34.9 billion, 

an increase of $2.9 billion (9.1 percent) over 

the first half of 1998. The average ROA for the 

first half of 1999 was 1.28 percent, up from 

1.25 percent for the same period of 1998. 

Net interest income was $393 million higher 

than in the first quarter, and was up $2.3 billion 

(5.0 percent) from a year ago. Provisions for 

credit losses were $490 million (9.0 percent) 

less than in the previous quarter, and were 

$172 million (3.4 percent) below the level of a 

year ago. Fee income increased by $1.4 billion (9.2 percent) from the previous quarter, 

and was $3.4 billion (26.8 percent) greater 

than in the second quarter of 1998. But total 

noninterest income was down $209 million 

(0.6 percent) from the first quarter, as trading 

revenues declined by $1.4 billion (39.4 percent) from the record level of $3.6 billion set in 

the first quarter, and total noninterest expenses rose by $1.2 billion (2.4 percent). The 

increase in noninterest expenses was caused 

mainly by merger-related charges at the large 

bank that was acquired; excluding this transaction, noninterest expenses at the remaining 

8,674 commercial banks increased by only 

$52 million. Net income from international 

operations was $742 million lower than in the 

first quarter, and $450 million less than a year 

earlier. 

1 Bankers Trust Company of New York was acquired by 

Deutsche Bank AG in June. 

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. 
QUARTERLY NET INTEREST MARGINS, 

1995–1999 

Net Interest Margin (%) 

3.5 

4.0 

4.5 

5.0 

5.5 

Assets > $100 Million 4.05 

Assets < $100 Million 4.43 

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

1995 1996 1997 1998 1999 

Net interest margins of smaller banks benefited from 

a moderate rise in interest rates and a steepening 

yield curve in the second quarter. Smaller institutions were able to recover some of the difference 

'84 '86 '88 '90 '92 '94 '96 '98 '99 

0 

1 

2 

3 

4 

5 

6 

7 

50 

100 

150 

200 

250 

300 

350 

400 

Credit Card Charge-Off Rates 

Personal 

Bankruptcy 

Filings 

Sources: Bankruptcies—Administrative Office of the United States Courts 

Charge-Off Rates—Commercial Bank Call Reports 

Total assets of commercial banks increased by $58.0 

billion during the quarter, after declining by $31.5 billion in the previous quarter. Through the first six 

months of 1999, commercial bank assets have 

grown by only $26.5 billion, or 0.5 percent. Trading 

account assets declined for a third consecutive quarter, shrinking by $36.6 billion. The main engines of 

asset growth in the second quarter were real estate 

loans, loans to depository institutions, and leases. 

Real estate loans increased by $26.9 billion (2.0 percent), led by growth in construction loans (up 5.6 percent during the quarter). Loans to depository 

institutions rose by $13.5 billion (13.0 percent), and 

lease financing receivables increased by $4.5 billion 

(3.4 percent). Commercial and industrial loans 

increased by $14.3 billion (1.6 percent), the smallest 

quarterly increase since the third quarter of 1997. 

between their average asset yields and the cost of 

funding those assets that they had lost during the 

previous three quarters. Banks with less than $100 

million in assets enjoyed an 11-basis point increase 

in their aggregate net interest margin, which nevertheless remained 18 basis points below the level of 

a year ago. Larger institutions, with assets greater 

than $1 billion, had little or no improvement in net 

interest margins. 

Asset quality moved in a positive direction during the 

second quarter, as consumer loans registered strong 

improvement and the deteriorating trend in loans to 

commercial and industrial borrowers slowed. Loan 

losses and noncurrent loans declined in the second 

quarter. Net charge-offs totaled $4.6 billion, $424 million (8.5 percent) less than in the first quarter, and 

$197 million (4.1 percent) lower than in the second 

quarter of 1998. The net charge-off rate on bank 

loans fell to 0.56 percent, the lowest level since the 

third quarter of 1996. Noncurrent loans fell by $1.1 

billion (3.3 percent) during the quarter, but still were 

up by $2.1 billion (7.2 percent) over the past 12 

months. The percentage of bank loans that were 

noncurrent—90 days or more past due or in nonaccrual status—fell from 0.96 percent to 0.94 percent 

during the quarter, matching the record low levels 

reached in the second and third quarters of last year. 

Most of the improvement in loan losses was concentrated in credit card loans, where net charge-offs 

were $545 million (20.4 percent) lower than in the 

first quarter, and $769 million (26.5 percent) less 

than a year ago. The annualized net charge-off rate 

on credit-card loans fell to 4.25 percent, from 4.93 

percent in the first quarter and 5.41 percent a year 

ago. This is the lowest quarterly charge-off rate for 

credit-card loans since the first quarter of 1996. 

Commercial and industrial loans were the main 

exception to the improving trend. Net charge-offs on 

loans to commercial and industrial borrowers were 

$269 million (26.6 percent) higher than in the first 

quarter, and $554 million (76.0 percent) higher than 

a year ago. Noncurrent commercial and industrial 

loans increased by only $217 million (2.1 percent) 

during the quarter, to 1.11 percent of total commercial and industrial loans. Over the last 12 months, 

noncurrent commercial and industrial loans have 

risen by $2.3 billion (29.2 percent). 

CREDIT CARD LOSS RATES AND PERSONAL 

BANKRUPTCY FILINGS, 1984–1999 

Net Charge-Off Rate (%) Number of Bankruptcy Filings (Thousands) 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 Second Quarter 1999 
Unused loan commitments declined for the first time 

since the third quarter of 1990, falling by $25.0 billion, as one bank eliminated a large number of inactive credit card accounts.2 

QUARTERLY CHANGE IN UNUSED LOAN 

COMMITMENTS, 1996–1999 

$ Billions 

$132.5 

$137.9 

$133.2 

$187.9 

$197.3 

$134.4 

$94.4 

0 

$100.5 

$67.0 

$116.9 

$127.7 

$84.0 

$50.0 

$-25.0 

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

1996 1997 1998 1999 

During the last 12 months, commercial bank lending 

to small business lagged well behind lending to larger commercial borrowers. Loans to small commercial and industrial borrowers increased by $11.1 

billion (5.5 percent), while commercial and industrial 

loans to larger borrowers rose by $70.2 billion (14.7 

percent). Small commercial real estate loans were 

up by $14.4 billion (8.2 percent), while larger commercial real estate loans increased by $27.5 billion 

(15.9 percent). 

COMMERCIAL AND INDUSTRIAL LOANS TO 

SMALL BUSINESSES, 1995–1999 

$ Billions 

1996 1997 1998 1999 

100 

200 

300 

400 

500 

600 

352.3 

1995 

369.6 

412.3 

477.3 

Small Business 547.5 

Medium/Large Business 

(Original loan amounts < $1 Million) 

(Original loan amounts > $1 Million) 

166.9 177.5 190.1 200.9 212.0 

0 

As of June 30 

Deposits increased by $43.6 billion in the second 

quarter, following a seasonal $44.4-billion decline in 

the first quarter. Over the last 12 months, deposits at 

commercial banks have risen by 5.0 percent, while 

industry assets have grown by 5.5 percent. A substantial share of the deposit growth during the quarter—44.4 percent—came from deposits in foreign 

offices. Savings deposits accounted for most of the 

growth in domestic deposits. Nondeposit liabilities 

increased by $17.8 billion, as Federal Home Loan 

Bank (FHLB) advances rose by $13.8 billion, to 

$121.4 billion. For the 12 months ended June 30, 

FHLB advances to commercial banks increased by 

82.1 percent. 

Equity capital declined by $3.4 billion during the 

quarter. This is the first time since the third quarter 

of 1989 that the industry’s equity has declined. The 

increase in interest rates caused a decline in net 

unrealized gains on banks’ available-for-sale securities that reduced equity capital by $8.8 billion. A 

large merger-related loss also contributed to the 

decline in equity. The average equity-to-assets ratio 

dropped from 8.68 percent to 8.53 percent during the 

quarter. Nevertheless, 98 percent of all commercial 

banks remained in the highest regulatory capital category at mid-year. 

The number of insured commercial banks declined 

by 46 institutions in the second quarter, to 8,675 

banks at mid-year. One insured commercial bank 

failed during the quarter, and 103 commercial banks 

were merged into other institutions. There were 55 

new commercial bank charters in the second quarter. 

Six savings institutions converted to commercial 

bank charters, and one commercial bank converted 

to a thrift charter. Two commercial banks voluntarily 

liquidated. The number of commercial banks on the 

FDIC’s “Problem List” declined from 64 to 62 during 

the quarter. “Problem” bank assets fell slightly, from 

$4.73 billion to $4.66 billion. 

2 Sears National Bank of Tempe, AZ reduced its unused credit card 

lines by $96.1 billion in the second quarter. 

FDIC Quarterly Banking Profile 

Second Quarter 1999 3 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

1999* 1998* 1998 1997 1996 1995 1994 

Return on assets (%)............................................. 1.28 1.25 1.19 1.23 1.19 1.17 1.15 

Return on equity (%)............................................. 14.97 14.84 13.93 14.68 14.45 14.66 14.61 

Core capital (leverage) ratio (%).............................. 7.74 7.64 7.54 7.56 7.64 7.61 7.64 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.64 0.65 0.65 0.66 0.75 0.85 1.01 

Net charge-offs to loans (%).................................... 0.59 0.62 0.67 0.64 0.58 0.49 0.50 

Asset growth rate (%)............................................. 5.52 8.59 8.50 9.54 6.16 7.53 8.21 

Net interest margin (%).......................................... 4.05 4.09 4.07 4.21 4.27 4.29 4.36 

Net operating income growth (%).............................. 12.89 6.81 2.29 12.47 6.44 7.48 16.18 

Number of institutions reporting.............................. 8,675 8,984 8,775 9,143 9,528 9,940 10,451 

Percentage of unprofitable institutions (%).................. 6.33 4.52 6.05 4.85 4.27 3.55 3.98 

Number of problem institutions................................. 62 64 69 71 82 144 247 

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

Number of failed/assisted institutions........................ 2 1 3 1 5 6 11 

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

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

(dollar figures in millions) 

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

Preliminary 

2nd Quarter 1st Quarter 2nd Quarter %Change 

1999 1999 1998 98:2-99:2 

... 8,675 8,721 8,984 -3.4 

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

CONDITION DATA

1,623,175 1,619,808 1,593,918 1.8 

 Total assets..................................................................... $5,467,745 $5,409,728 $5,181,540 5.5

 Loans secured by real estate............................................. 1,373,189 1,346,301 1,285,768 6.8

 Commercial & industrial loans.......................................... 936,064 921,743 849,451 10.2

 Loans to individuals......................................................... 534,399 548,524 547,705 -2.4

 Farm loans.................................................................. 46,017 43,956 47,069 -2.2

 Other loans & leases...................................................... 422,312 394,090 366,098 15.4

 Less: Unearned income................................................... 3,552 3,663 4,243 -16.3

 Total loans & leases......................................................... 3,308,430 3,250,951 3,091,849 7.0

 Less: Reserve for losses................................................... 57,591 57,866 56,384 2.1

 Net loans and leases......................................................... 3,250,839 3,193,085 3,035,466 7.1

 Securities........................................................................ 1,007,111 995,433 893,984 12.7

 Other real estate owned................................................... 2,915 3,135 3,531 -17.5

 Goodwill and other intangibles............................................. 85,539 83,311 76,153 12.3

 All other assets............................................................... 1,121,342 1,134,765 1,172,406 -4.4 

Total liabilities and capital................................................... 5,467,745 5,409,728 5,181,540 5.5

 Noninterest-bearing deposits............................................. 708,384 667,065 688,126 2.9

 Interest-bearing deposits.................................................. 2,972,434 2,970,118 2,818,500 5.5

 Other borrowed funds...................................................... 963,120 936,302 871,832 10.5

 Subordinated debt............................................................ 74,570 73,363 67,272 10.8

 All other liabilities............................................................ 283,050 293,283 289,972 -2.4

 Equity capital.................................................................. 466,187 469,597 445,839 4.6 

Loans and leases 30-89 days past due................................. 36,972 39,059 35,671 3.6 

Noncurrent loans and leases................................................ 31,157 32,223 29,063 7.2 

Restructured loans and leases............................................. 1,487 1,532 1,960 -24.2 

Direct and indirect investments in real estate........................... 320 518 535 -40.2 

1-4 Family residential mortgages.......................................... 754,915 748,698 741,218 1.8 

Mortgage-backed securities................................................ 445,795 455,685 392,939 13.5 

Earning assets.................................................................. 4,727,161 4,673,836 4,457,848 6.0 

Long-term assets (5+ years)................................................ 1,092,391 1,060,556 872,412 25.2 

Volatile liabilities............................................................... 1,804,631 1,750,243 1,668,914 8.1 

Foreign office deposits......................................................... 594,111 574,726 549,037 8.2 

FHLB Advances (Source: FHFB).......................................... 121,390 107,602 66,647 82.1 

Unused loan commitments................................................... 3,724,217 3,749,177 3,480,803 7.0 

Off-balance-sheet derivatives................................................ 33,500,113 33,198,458 28,837,375 16.2 

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 Preliminary 

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

1999 1998 %Change 1999 1998 98:2-99:2 

... $180,134 $178,577 0.9 $89,894 $89,966 -0.1 

84,980 88,728 -4.2 42,114 44,452 -5.3

... 95,154 89,849 5.9 47,780 45,513 5.0 

10,336 9,936 4.0 4,926 5,098 -3.4 

69,198 59,457 16.4 34,513 30,425 13.4 

... 100,396 92,092 9.0 50,811 46,374 9.6 

... 708 1,374 -48.5 141 578 -75.5 

19,359 17,162 12.8 9,736 8,925 9.1 

... -34 527 N/M 0 -11 N/M

... 34,936 32,018 9.1 16,962 16,108 5.3 

... 9,574 9,430 1.5 4,577 4,774 -4.1 

22,705 18,319 23.9 13,653 9,312 46.6

34,533 30,591 12.9 16,910 15,739 7.4 

N/M - Not meaningful 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 Second Quarter 1999 
 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE III-A. First Half 1999, FDIC-Insured Commercial Banks 

First Half 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 

8,675 5,303 2,978 317 77 685 1,439 1,880 2,243 1,485 943 

Total assets (in billions)....................................... $5,467.7 $247.0 $736.5 $872.5 $3,611.7 $1,909.7 $1,233.1 $901.7 $374.6 $304.3 $744.3 

Total deposits (in billions).................................... 3,680.8 210.8 602.4 596.7 2,270.9 1,205.8 801.2 617.5 271.8 244.8 539.8 

Net income (in millions)....................................... 34,936 1,317 5,031 6,749 21,838 10,991 7,781 5,845 2,929 1,779 5,611 

% of unprofitable institutions................................. 6.3 9.4 1.6 1.3 1.3 8.8 9.9 4.3 3.4 5.8 11.0 

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

Performance ratios (annualized, %) 

55.5 48.3 65.6 74.1 76.6 65.0 60.1 57.9 49.9 50.0 58.5 

Yield on earning assets....................................... 7.67 7.85 7.95 8.06 7.50 7.68 7.55 7.51 8.04 7.46 7.96 

Cost of funding earning assets.............................. 3.62 3.49 3.43 3.47 3.71 4.01 3.49 3.63 3.51 3.16 3.10 

Net interest margin............................................. 4.05 4.36 4.52 4.59 3.79 3.66 4.06 3.88 4.52 4.30 4.87 

Noninterest income to earning assets..................... 2.95 1.31 1.88 3.45 3.18 3.88 2.49 2.27 2.64 1.58 2.99 

Noninterest expense to earning assets.................. 4.28 3.84 3.90 4.69 4.29 4.82 3.99 3.68 4.02 3.72 4.52 

Credit loss provision to assets.............................. 0.38 0.22 0.29 0.58 0.36 0.40 0.33 0.29 0.51 0.26 0.49 

Net operating income to assets.............................. 1.27 1.08 1.38 1.55 1.19 1.14 1.25 1.30 1.56 1.16 1.49 

Return on assets................................................ 1.28 1.08 1.39 1.56 1.21 1.15 1.27 1.31 1.57 1.18 1.51 

Return on equity................................................ 14.97 9.84 14.56 16.25 15.17 14.61 13.99 15.66 17.87 13.43 15.76 

Net charge-offs to loans and leases........................ 0.59 0.21 0.33 0.74 0.62 0.76 0.44 0.35 0.71 0.42 0.72 

Credit loss provision to net charge-offs.................. 107.97 177.60 144.35 123.79 97.56 100.97 118.90 123.23 107.73 114.37 102.49 

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

Condition Ratios (%) 

... 59.02 67.30 60.00 55.47 59.37 61.93 58.36 58.17 54.96 61.64 55.01 

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

Loss allowance to: 

86.46 92.07 91.70 89.47 84.27 83.06 87.88 89.20 90.86 89.36 86.07 

Loans and leases............................................. 1.74 1.44 1.48 1.99 1.75 1.98 1.47 1.44 1.72 1.35 2.18 

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

Noncurrent assets plus 

... 184.84 134.26 180.38 223.29 180.39 163.50 181.90 179.03 205.25 132.97 272.40 

other real estate owned to assets........................ 0.64 0.74 0.61 0.62 0.65 0.73 0.57 0.58 0.61 0.66 0.62 

Equity capital ratio............................................. 8.53 10.83 9.42 9.54 7.94 7.83 8.89 8.36 8.73 8.72 9.73 

Core capital (leverage) ratio................................. 7.74 10.84 9.24 8.73 6.99 7.29 7.73 7.91 8.34 8.20 8.27 

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

Structural Changes (YTD) 

... 88.32 68.49 75.10 90.83 93.01 81.77 95.65 95.46 90.74 69.26 91.34 

New Charters................................................ 117 112 3 1 1 19 41 14 14 13 16 

Banks absorbed by mergers.............................. 217 128 77 11 1 30 55 32 36 42 22 

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

Prior First Halves

 (The way it was...) 

... 2 2 0 0 0 0 1 0 0 1 0 

Number of institutions................................1998 8,984 5,646 2,964 310 64 704 1,475 1,961 2,306 1,570 968 

...............................................1996 9,691 6,471 2,816 331 73 765 1,593 2,137 2,454 1,722 1,020 

...............................................1994 10,717 7,561 2,773 328 55 853 1,789 2,351 2,667 1,899 1,158 

Total assets (in billions).............................1998 $5,181.5 $259.1 $734.1 $927.7 $3,260.7 $1,907.1 $1,102.9 $845.2 $338.9 $302.6 $684.8 

................................................1996 4,397.1 290.3 681.0 1,001.3 2,424.5 1,667.1 767.7 697.2 284.0 325.9 655.1 

................................................1994 3,892.6 326.3 676.5 1,079.4 1,810.3 1,526.4 613.7 639.3 251.1 293.5 568.6 

Return on assets (%)................................1998 1.25 1.24 1.37 1.56 1.14 1.16 1.21 1.31 1.48 1.17 1.43 

................................................1996 1.18 1.22 1.29 1.30 1.10 1.06 1.24 1.19 1.44 1.23 1.30 

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

Net charge-offs to loans & leases (%) 

1.17 1.17 1.19 1.40 1.01 1.08 1.22 1.18 1.47 1.19 1.17 

................................................1998 0.62 0.20 0.33 1.02 0.60 0.86 0.40 0.39 0.72 0.39 0.78 

................................................1996 0.56 0.19 0.37 0.82 0.53 0.67 0.42 0.40 0.63 0.29 0.71 

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

Noncurrent assets plus 

0.53 0.17 0.33 0.64 0.59 0.83 0.23 0.29 0.40 0.10 0.62 

OREO to assets (%)..............................1998 0.65 0.77 0.65 0.73 0.62 0.74 0.57 0.56 0.64 0.59 0.69 

................................................1996 0.82 0.84 0.80 0.84 0.81 0.95 0.65 0.63 0.70 0.64 1.00 

................................................1994 1.27 0.97 1.14 1.16 1.43 1.62 0.88 0.78 0.86 0.79 1.70 

Equity capital ratio (%)..............................1998 8.60 10.99 9.71 9.76 7.84 7.49 9.42 8.58 9.20 9.16 9.88 

................................................1996 8.30 10.42 9.41 9.02 7.43 7.45 8.45 8.50 8.89 8.82 9.56 

................................................1994 7.83 9.91 8.88 8.24 6.83 7.11 8.04 7.99 8.80 8.44 8.63 

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 

Second Quarter 1999 5 FDIC-Insured Commercial Banks 
 

 

 

 

 

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

SECOND 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 

8,675 5,303 2,978 317 77 685 1,439 1,880 2,243 1,485 943 

Total assets (in billions)....................................... $5,467.7 $247.0 $736.5 $872.5 $3,611.7 $1,909.7 $1,233.1 $901.7 $374.6 $304.3 $744.3 

Total deposits (in billions).................................... 3,680.8 210.8 602.4 596.7 2,270.9 1,205.8 801.2 617.5 271.8 244.8 539.8 

Net income (in millions)....................................... 16,962.1 661.4 2,408.7 3,625.2 10,266.8 4,682.5 3,955.2 2,853.2 1,518.8 986.3 2,966.1 

% of unprofitable institutions................................. 6.7 9.6 2.2 1.3 1.3 9.2 10.2 4.8 3.9 6.0 10.7 

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

Performance Ratios (annualized, %) 

56.8 50.6 65.4 73.2 77.9 65.3 60.9 58.6 51.2 53.4 59.2 

Yield on earning assets....................................... 7.65 7.93 8.01 8.10 7.43 7.52 7.59 7.54 8.11 7.52 8.00 

Cost of funding earning assets.............................. 3.58 3.50 3.43 3.48 3.65 3.90 3.48 3.64 3.52 3.16 3.10 

Net interest margin............................................. 4.07 4.43 4.58 4.62 3.78 3.62 4.11 3.90 4.59 4.36 4.90 

Noninterest income to earning assets..................... 2.94 1.36 1.79 3.62 3.13 3.78 2.55 2.20 2.74 1.70 3.03 

Noninterest expense to earning assets.................. 4.32 3.94 3.97 4.75 4.32 4.94 3.96 3.70 4.08 3.74 4.56 

Credit loss provision to assets.............................. 0.36 0.24 0.31 0.55 0.34 0.38 0.37 0.26 0.52 0.22 0.38 

Net operating income to assets.............................. 1.24 1.08 1.32 1.68 1.14 0.99 1.28 1.27 1.63 1.29 1.58 

Return on assets................................................ 1.25 1.08 1.32 1.68 1.14 0.98 1.29 1.28 1.63 1.31 1.60 

Return on equity................................................ 14.49 9.86 13.87 17.47 14.22 12.43 14.26 15.19 18.51 14.85 16.48 

Net charge-offs to loans and leases........................ 0.56 0.24 0.34 0.74 0.58 0.71 0.45 0.31 0.73 0.41 0.67 

Credit loss provision to net charge-offs.................. 107.63 167.88 148.39 116.92 97.89 102.76 131.89 126.99 107.69 96.13 84.63 

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

Structural Changes (QTR) 

... 59.65 67.48 61.26 54.85 60.30 64.73 56.81 58.98 54.55 60.07 54.95 

New charters................................................... 55 53 2 0 0 11 21 5 5 4 9 

Banks absorbed by mergers.............................. 103 60 37 6 0 7 28 20 13 22 13 

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

PRIOR SECOND QUARTERS

 (The way it was...) 

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

Return on assets (%)................................1998 1.25 1.23 1.37 1.41 1.18 1.15 1.24 1.30 1.48 1.12 1.45 

.................................................1996 1.27 1.24 1.31 1.37 1.23 1.25 1.30 1.20 1.51 1.21 1.31 

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

Net charge-offs to loans & leases (%) 

1.16 1.19 1.19 1.38 1.01 1.03 1.24 1.21 1.52 1.15 1.17 

.................................................1998 0.62 0.24 0.35 1.04 0.59 0.83 0.43 0.41 0.72 0.42 0.79 

.................................................1996 0.57 0.23 0.40 0.88 0.51 0.68 0.42 0.41 0.62 0.34 0.74 

.................................................1994 0.57 0.21 0.39 0.68 0.63 0.93 0.22 0.31 0.40 0.13 0.67 

NONINTEREST INCOME AS A PERCENTAGE OF INTERNATIONAL OPERATIONS CONTRIBUTION 

BANK REVENUE, 1985-1999 TO BANK EARNINGS, 1995 - 1999 

Quarterly Noninterest Income, % of Net Operating Revenue 

20 50 

16 

40 

12 

8 

30 

4 

20 0 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 1995 1996 1997 1998 1999 

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

FDIC Quarterly Banking Profile 

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

June 30, 1999 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 1.02 1.23 0.93 0.92 1.06 1.11 0.91 1.13 1.13 1.08 0.81 

Construction and development........................... 1.13 1.08 0.98 0.92 1.32 1.05 0.94 1.49 1.78 1.12 0.84 

Commercial real estate....................................... 0.86 0.86 0.72 0.77 0.99 0.81 1.00 1.01 0.75 0.86 0.56 

Multifamily residential real estate........................... 0.58 0.76 0.60 0.58 0.57 0.46 0.48 0.85 0.77 0.81 0.48 

Home equity loans............................................. 0.75 0.84 0.69 0.83 0.74 0.73 0.72 0.86 0.79 0.55 0.70 

Other 1-4 Family residential................................. 1.14 1.58 1.15 1.07 1.12 1.27 0.90 1.23 1.30 1.30 1.17 

Commercial and industrial loans*........................... 0.92 1.46 1.36 1.21 0.72 0.62 0.79 1.32 1.61 1.57 0.79 

Loans to individuals............................................. 2.18 2.21 1.99 2.15 2.23 2.44 2.37 1.98 2.16 1.57 1.80 

Credit card loans............................................. 2.44 2.73 3.34 2.61 2.29 2.80 2.52 1.96 2.59 1.37 1.80 

Other loans to individuals.................................... 2.03 2.19 1.71 1.77 2.19 2.12 2.32 1.98 1.79 1.58 1.80 

All other loans and leases (including farm)............... 0.60 NA NA 1.08 0.59 0.54 0.36 1.07 0.65 1.17 0.36 

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

Percent of Loans Noncurrent** 

0.48 0.52 0.58 0.50 0.48 0.22 0.13 2.26 0.97 0.50 0.16 

All real estate loans............................................. 0.85 0.87 0.66 0.77 0.95 1.10 0.78 0.80 0.65 0.96 0.69 

Construction and development........................... 0.83 0.61 0.61 0.75 1.01 1.03 0.90 0.78 0.74 0.60 0.78 

Commercial real estate....................................... 0.91 0.83 0.67 0.81 1.12 1.14 1.00 0.82 0.59 1.23 0.66 

Multifamily residential real estate........................... 0.70 0.72 0.55 0.54 0.82 0.76 0.86 0.70 0.30 0.63 0.57 

Home equity loans............................................. 0.36 0.46 0.38 0.41 0.33 0.47 0.31 0.38 0.28 0.29 0.28 

Other 1-4 Family residential................................. 0.79 0.78 0.66 0.80 0.83 0.92 0.67 0.86 0.57 0.81 0.82 

Commercial and industrial loans*........................... 1.11 1.58 1.24 1.03 1.02 1.19 0.90 1.02 1.21 1.60 1.13 

Loans to individuals............................................. 1.33 0.82 0.81 1.12 1.54 2.23 0.95 0.70 1.07 0.47 0.98 

Credit card loans............................................. 1.87 1.76 2.18 1.82 1.87 2.40 1.41 1.31 1.66 0.71 1.44 

Other loans to individuals.................................... 1.03 0.78 0.53 0.54 1.34 2.08 0.81 0.59 0.56 0.46 0.40 

All other loans and leases (including farm)............... 0.43 NA NA 0.59 0.43 0.40 0.49 0.45 0.49 0.69 0.35 

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

Percent of Loans Charged-off (net, YTD) 

0.41 0.47 0.26 0.37 0.42 0.25 0.33 0.33 0.21 1.06 0.74 

All real estate loans............................................. 0.06 0.03 0.04 0.07 0.07 0.05 0.08 0.05 0.06 0.09 0.03 

Construction and development........................... 0.04 0.15 0.02 0.05 0.02 -0.01 0.05 0.05 0.04 0.04 0.03 

Commercial real estate....................................... 0.01 0.03 0.02 0.00 0.01 -0.05 0.07 0.00 0.00 0.12 -0.05 

Multifamily residential real estate........................... 0.00 -0.02 0.03 0.01 -0.02 0.02 -0.01 0.02 0.04 -0.05 -0.05 

Home equity loans............................................. 0.16 0.03 0.04 0.22 0.17 0.17 0.20 0.19 0.13 0.56 0.02 

Other 1-4 Family residential................................. 0.08 0.03 0.05 0.10 0.09 0.08 0.08 0.06 0.11 0.07 0.12 

Commercial and industrial loans*........................... 0.50 0.33 0.41 0.40 0.51 0.53 0.49 0.32 0.34 0.59 0.67 

Loans to individuals............................................. 2.33 0.64 1.48 2.74 2.44 2.94 1.70 1.44 2.80 0.94 2.90 

Credit card loans............................................. 4.60 2.51 5.54 4.81 4.44 4.63 4.26 4.37 5.13 2.55 4.61 

Other loans to individuals.................................... 0.94 0.55 0.58 0.84 1.09 1.30 0.84 0.82 0.79 0.87 0.60 

All other loans and leases (including farm)............... 0.21 NA NA 0.25 0.23 0.10 0.32 0.29 0.42 0.45 0.16 

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

Loans Outstanding (in billions) 

-0.01 0.52 -0.29 -0.04 -0.01 -0.08 0.07 0.02 0.00 0.02 -0.03 

All real estate loans............................................. $1,373.2 $82.4 $286.9 $280.4 $723.5 $327.2 $394.4 $268.4 $111.0 $79.1 $193.1 

Construction and development........................... 118.1 6.3 28.0 28.0 55.8 13.1 40.8 22.8 10.4 10.1 21.0 

Commercial real estate....................................... 391.1 23.0 102.9 89.5 175.8 71.3 107.6 81.9 30.3 29.2 70.9 

Multifamily residential real estate........................... 47.3 1.7 9.5 11.0 25.0 12.5 10.5 9.5 3.3 2.5 9.0 

Home equity loans............................................. 91.8 1.8 12.0 17.6 60.3 21.4 24.0 23.1 5.1 1.2 17.0 

Other 1-4 Family residential................................. 663.2 38.7 122.4 130.8 371.2 180.9 205.7 123.5 52.1 32.8 68.2 

Commercial and industrial loans.............................. 936.1 25.1 83.4 118.1 709.5 320.5 198.8 172.1 57.9 45.5 141.2 

Loans to individuals............................................. 534.4 20.7 63.9 119.7 330.1 180.9 111.5 79.8 48.8 32.4 81.1 

Credit card loans............................................. 192.9 0.8 10.7 54.9 126.4 85.0 27.1 11.9 22.3 1.3 45.2 

Other loans to individuals.................................... 341.5 19.9 53.2 64.9 203.6 95.8 84.3 67.9 26.4 31.1 35.9 

All other loans and leases (including farm)............... 468.3 18.8 25.9 35.3 388.4 178.7 73.7 78.0 33.4 15.4 89.1 

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

Memo: Other Real Estate Owned (in millions) 

35.4 0.2 1.0 2.6 31.6 10.7 8.9 3.9 2.7 1.5 7.7 

All other real estate owned.................................... $2,914.5 $261.4 $719.6 $458.0 $1,475.6 $839.9 $737.3 $361.9 $194.9 $250.6 $529.9 

Construction and development........................... 252.1 22.9 114.8 40.2 74.2 46.4 100.0 24.4 21.5 15.3 44.5 

Commercial real estate....................................... 1,298.9 110.6 328.5 211.1 648.8 352.3 265.4 146.1 69.6 142.3 323.1 

Multifamily residential real estate........................... 77.7 7.6 18.1 27.3 24.8 32.3 14.3 6.4 6.2 3.2 15.4 

1-4 Family residential.......................................... 1,019.1 88.4 227.0 171.5 532.1 212.9 348.7 176.4 73.0 69.4 138.7 

Farmland......................................................... 76.3 32.0 31.2 7.8 5.3 7.2 8.8 8.0 24.7 20.3 7.3 

Other real estate owned in foreign offices............... 190.4 0.0 0.0 0.1 190.3 188.8 0.0 0.6 0.0 0.0 1.0 

* 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 

Second Quarter 1999 7 FDIC-Insured Commercial Banks 
SAVINGS INSTITUTION PERFORMANCE–SECOND QUARTER, 1999 

• Earnings of $2.9 Billion Are Second-Highest Ever 

• Net Operating Income Sets Quarterly Record 

• Smaller Institutions Still Show Little Improvement 

• Industry Continues To Increase Its Reliance on FHLB Borrowings 

Savings institutions insured by the FDIC reported 

$2.9 billion in second-quarter earnings, which was 

$180 million higher than in the first quarter. Only 

the $3.0 billion that thrifts earned in the third quarter of 1998 exceeded the industry’s second-quarter 

results. Net interest income was $217 million higher than the first quarter, mostly due to an $11.7 billion increase in earning assets. Provisions for loan 

losses declined from $397 million in the first quarter to $390 million, the lowest quarterly total since 

the industry began reporting this data in 1987. 

Noninterest income rose by $113 million, due to 

higher fee income, while noninterest expense fell 

$37 million, due to lower salary expenses during 

the quarter. Gains on sales of securities totaled 

$445 million, 26 percent ($155 million) lower than in 

the first quarter. Net operating income, which 

excludes securities gains and extraordinary items, 

totaled $2.6 billion, the highest quarterly total ever 

reported by the industry. Savings institutions had 

an aggregate return on assets (ROA) of 1.03 percent for the second quarter, up from 0.98 percent in 

the first quarter, but down from 1.09 percent in the 

second quarter of 1998. Just 29 percent of all 

thrifts had an ROA in excess of 1 percent. 

Net interest margins have remained quite steady as 

earning assets have increased. Net interest 

income rose to $8.1 billion in the second quarter, up 

QUARTERLY NET INCOME, 1995–1999 

$ Billions 

Secur

Net O

2.2 

1.9 1.7 1.8 

ities and Othe

perating Incom

2.6 2.5 

2.2 

-0.0 

r Gains, Net 

e 

2.4 2.4 2.3 

2.0 

3.0 

2.8 

2.6 

2.0 

2.9 2.7 

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

1995 1996 1997 1998 1999 

by $217 million from last quarter, and by $484 million from a year ago. As a percentage of earning 

assets, net interest income rose slightly during the 

second quarter, to 3.10 percent from 3.08 percent 

last quarter, but this was below the 3.14 percent of 

a year ago. In the second quarter average earning 

asset yields rose 1 basis point, while the average 

cost of funding earning assets declined by 1 basis 

point. Asset yields were 40 basis points higher 

than a year ago, while the cost of funding earning 

assets was 37 basis points higher. 

QUARTERLY NET INTEREST MARGINS, 

1995–1999 Net Interest Margin (%) 

2.5 

3.0 

3.5 

4.0 

4.5 

Assets < $100 Million 

Assets > $100 Million 3.10 

3.37 

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

1995 1996 1997 1998 1999 

Profitability in the industry was variable, as small 

institutions still trail the rest of the industry, and the 

gap has widened recently. Of the 681 institutions 

with assets below $100 million, only 39.9 percent 

showed earnings gains from a year ago and just 20 

percent had an ROA above the 1-percent level. 

The average ROA for this group was 0.67 percent 

for the second quarter, just a slight improvement 

from the 0.65 percent reported last quarter, but 

down from 0.73 percent a year ago. The gap 

between the ROA for this group and average profitability in the rest of the industry was 38 basis 

points this quarter, up from 34 basis points last 

quarter and 37 basis points a year ago. Small institutions rely heavily on net interest margins for profitability. While the average net interest margin for 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 Second Quarter 1999 

0 
this group improved somewhat from the first quarter, rising 4 basis points to 3.37 percent, it showed 

a decline of 11 basis points from 3.48 percent a 

year ago. 

Loan loss reserves as a percentage of total loans, 

at 0.94 percent, were at the lowest level since 

1990, but the coverage ratio—loan-loss reserves to 

noncurrent loans—reached a new high for the 10 

years that noncurrent data has been reported, at 

$1.24 in reserves for every dollar of noncurrent 

loans. Reserves for loan losses decreased by $13 

million to just under $7 billion this quarter, while 

noncurrent loans declined by $373 million to $5.6 

billion or 0.76 percent of total loans. Any institution 

that exits the industry takes its reserves with its 

assets and the remaining institutions must make up 

the difference or industry reserves can shrink. 

Provisions for loan losses, which add to reserves, 

have exceeded net charge-offs, which reduce 

reserves, in every quarter since 1995. While the 

excess has occurred against a backdrop of declining noncurrent loan levels, it has not kept pace with 

the growth in total loans. Net charge-offs were an 

annualized 0.17 percent of total loans this quarter, 

down from a charge-off rate of 0.20 percent a year 

ago. 

COVERAGE RATIO* AND RESERVE LEVELS, 

1994–1999 $ Billions Coverage Ratio (%) 

Noncurrent Loans ($) 

Loan-Loss Reserves ($) 

Coverage Ratio (%) 

0 

6 

12 

18 

24 

30 

12/9412/9512/96 3/97 6/97 9/97 12/97 3/98 6/98 9/98 12/98 3/99 6/99 

0 

20 

40 

60 

80 

100 

120 

*Loan-loss reserves to noncurrent loans. 

Residential real estate lending, in which thrifts have 

traditionally specialized, has been particularly 

strong over the past 12 months. Because of this 

strength, the overall troubled real estate rate—noncurrent real estate loans plus other real estate 

owned (OREO) to total real estate loans plus 

OREO—fell to 0.96 percent, the first time it has 

been below 1 percent since all institutions began 

providing consistent measures of noncurrent loans 

FDIC Quarterly Banking Profile 

in 1990. Troubled real estate rates for single family and multifamily lending were both below the 1-

percent level, at 0.90 percent and 0.77 percent, 

respectively. Noncurrent commercial real estate 

and construction loans were above the 1-percent 

level, at 1.65 percent and 1.48 percent, but were 

well below year-ago levels of 2.15 percent and 2.02 

percent, respectively. 

TROUBLED REAL ESTATE RATES BY LOAN TYPE,* 

1997–1999 Percent of Loans 

0 

1.0 

2.0 

3.0 

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

Commercial Loans 

Construction 

and Land 

Multifamily 

Total 

Real Estate 1-4 Family 

*Noncurrent real estate loans plus other real estate owned (OREO) as a percent 

of total real estate loans plus OREO. 

Industry assets grew by $15.8 billion during the 

second quarter with most of the increase accounted for by loan growth of $15.2 billion. Single family mortgages grew by $9.4 billion, while loans to 

individuals grew by $3.6 billion. In addition to 

loans, thrifts added another $2.3 billion in securities. Deposits funded none of this growth, declining 

by $113 million during the quarter. Other borrowed 

funds increased $19.9 billion while other liabilities 

declined by $4.3 billion.1 Federal Home Loan Bank 

(FHLB) borrowings accounted for 72 percent of the 

increase in other borrowed funds, rising $14.3 billion to $199.4 billion. 

Equity capital rose by $512 million during the quarter, but failed to keep pace with asset growth, leading to a decline in the equity capital ratio to 8.55 

percent from 8.62 percent. Excluding an increase 

in goodwill and other intangibles of $609 million, 

tangible equity capital showed a $97-million 

decline. Accumulated gains of $1.4 billion on the 

value of securities that were available for sale 

declined to a loss of almost $0.5 billion during the 

quarter due to a rise in interest rate levels. This 

1 Washington Mutual Bank, FA, Stockton California, reported a $3-

billion decline in accounts payable during the second quarter. 

Second Quarter 1999 9 FDIC-Insured Savings Institutions 
AR 

3.1 

LA 

0.4 

NM 

0.7 

OK 

0.8 

TX 

1.0 

decline, of $1.9 billion, was recorded in equity 

capital on an after-tax basis. The actual pre-tax 

decline in security values was even greater. 

Earnings retained by the industry added $1.7 billion to equity capital. Regulatory capital, which 

excludes the changes in the value of availablefor-sale securities, goodwill, and other intangibles, rose in the second quarter. Tier 1 

regulatory capital rose by $2.4 billion, causing 

the leverage (core) capital ratio to rise to 7.93 

percent from 7.87 percent. A year ago, this ratio 

reached a peak of 8.10 percent. 

The number of savings institutions declined, by 

17, to 1,652 at the end of June. Mergers that 

absorbed 19 thrifts caused most of the decline. 

Commercial banks absorbed 10 of these and 

other thrifts absorbed 9 institutions. In addition, 

6 thrifts changed their charters to a commercial 

bank charter. These declines were partially offset by 8 new institutions that opened for operation during the quarter. Within the industry there 

were additional charter changes that included 8 

RISK-BASED CAPITAL RATIOS, 

1993–1999 Ratios (%) 

18 

16 

14 

12 

10 

8 

6 

4 

1993 1994 1995 1996 1997 1998 1999 

Total Risk-Based Capital 

Tier 1 Risk-Based Capital 

Equity to Assets 

Core Capital (Leverage) 

mutual-to-stock conversions, involving $1.7 billion in assets. No institution failed for the 11th 

consecutive quarter in a row. At the end of June 

there were 14 institutions with $4.2 billion in 

assets that were considered “problem” institutions, down from 16 institutions with $5.0 billion 

in assets at the end of March. 

MO 

0.5 

KY 

1.1 

MS AL GA 

1.3 0.6 0.7 

NC 

0.6 

SC 

0.5 

TN 

0.6 

VA 

0.5 1.4 

0.7 

FL 

WV 

PR 

NA 

ID 

0.1 

0.5 

WA 

0.5 

WY 

0.8 

MT 

Midwest 

CO 

0.3 

NV 

1.3 

OR 

0.4 

UT 

1.2 

IL 

0.8 0.9 

IN 

MI 

0.9 

OH 

0.6 

WI 

0.5 

VT: 1.1 

NH: 0.5 

MA: 0.4 

RI: 0.9 

AK 

0.1 

AZ 

0.5 

CA 

0.7 

Southwest 

HI 

2.0 

* Noncurrent loan rates represent the percentage of loans that are past due 90 

days or more or in nonaccrual status. 

NONCURRENT LOAN RATES,* 

JUNE 30, 1999 

West 

Central 

IA 

0.6 

KS 

0.3 

MN 

0.3 

NE 

0.7 

ND 

0.5 

SD 

0.6 

Northeast 

CT: 0.7 

NJ: 2.6 

ME 

0.9 

NY 

0.9 

PA 

0.6 

DE: 0.7 

MD: 2.0 

DC: 1.9 

Southeast 

Greater than 1.5% 

Between .75% and 1.5% 

Less than .75% 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Second Quarter 1999 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

1999** 1998** 1998 1997 1996 1995 1994 

Return on assets (%)............................................. 1.01 1.05 1.01 0.93 0.70 0.77 0.66 

Return on equity (%)............................................. 11.70 11.94 11.35 10.84 8.40 9.40 8.28 

Core capital (leverage) ratio (%).............................. 7.93 8.10 7.85 7.95 7.76 7.80 7.65 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.62 0.82 0.72 0.95 1.09 1.20 1.38 

Net charge-offs to loans (%).................................... 0.16 0.20 0.22 0.25 0.32 0.34 0.51 

Asset growth rate (%)............................................. 7.74 1.59 6.05 -0.21 0.24 1.70 0.77 

Net interest margin................................................ 3.10 3.16 3.10 3.23 3.22 3.09 3.34 

Net operating income growth (%).............................. 8.69 2.98 7.69 20.08 -14.01 13.81 22.24 

Number of institutions reporting.............................. 1,652 1,728 1,688 1,779 1,924 2,030 2,152 

Percentage of unprofitable institutions (%).................. 6.60 4.75 5.27 4.10 12.06 5.86 6.97 

Number of problem institutions................................. 14 18 15 21 35 49 71 

Assets of problem institutions (in billions).................. $4 $3 $6 $2 $7 $14 $39 

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

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

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

(dollar figures in millions) 

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

Preliminary 

2nd Quarter 1st Quarter 2nd Quarter %Change 

1999 1999 1998 98:2-99:2 

... 1,652 1,669 1,728 -4.4 

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

CONDITION DATA

241,350 240,028 247,422 -2.5 

 Total assets..................................................................... $1,125,761 $1,109,955 $1,044,879 7.7

 Loans secured by real estate............................................. 656,454 646,456 632,274 3.8 

1-4 Family Residential................................................... 528,015 518,644 507,987 3.9 

Multifamily residential property.......................................... 52,249 54,263 56,733 -7.9 

Commercial real estate................................................... 50,112 49,059 46,743 7.2 

Construction, development, and land................................. 26,078 24,491 20,811 25.3

 Commercial & industrial loans.......................................... 23,707 22,376 17,744 33.6

 Loans to individuals......................................................... 57,622 54,028 48,852 18.0

 Other loans & leases...................................................... 3,947 3,626 3,063 28.9

 Less: Unearned income & contra accounts***..................... 188 179 180 4.3

 Total loans & leases......................................................... 741,541 726,308 701,752 5.7

 Less: Reserve for losses................................................... 6,986 6,999 6,983 0.0

 Net loans & leases............................................................ 734,555 719,310 694,769 5.7

 Securities........................................................................ 290,229 287,919 252,064 15.1

 Other real estate owned................................................... 1,354 1,530 1,763 -23.2

 Goodwill and other intangibles............................................. 15,430 14,820 12,689 21.6

 All other assets............................................................... 84,194 86,377 83,594 0.7 

Total liabilities and capital................................................... 1,125,761 1,109,955 1,044,880 7.7

 Deposits........................................................................ 699,253 699,366 702,725 -0.5

 Other borrowed funds...................................................... 311,516 291,664 230,542 35.1

 Subordinated debt............................................................ 2,946 3,066 2,930 0.5

 All other liabilities............................................................ 15,822 20,148 15,320 3.3

 Equity capital.................................................................. 96,224 95,712 93,362 3.1 

Loans and leases 30-89 days past due................................. 6,445 6,779 7,118 -9.4 

Noncurrent loans and leases................................................ 5,639 6,012 6,753 -16.5 

Restructured loans and leases............................................. 2,076 2,306 2,888 -28.1 

Direct and indirect investments in real estate........................... 606 588 619 -2.1 

Mortgage-backed securities................................................ 220,347 222,661 187,721 17.4 

Earning assets.................................................................. 1,047,219 1,035,547 973,747 7.5 

FHLB Advances (Source: TFR and FHFB).............................. 199,368 185,109 142,949 39.5 

Unused loan commitments................................................... 183,892 189,222 193,433 -4.9 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

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

1999 1998 %Change 1999 1998 98:2-99:2 

... $37,091 $36,437 1.8 $18,807 $18,455 1.9 

21,264 21,434 -0.8 10,754 10,887 -1.2

... 15,827 15,003 5.5 8,052 7,568 6.4 

... 784 867 -9.6 390 464 -15.9 

4,756 4,081 16.5 2,442 2,182 11.9 

... 12,116 11,629 4.2 6,066 5,970 1.6 

... 1,042 1,298 -19.7 445 655 -32.0 

3,187 2,516 26.7 1,618 1,161 39.4 

... -3 -8 N/M -1 0 N/M

... 5,534 5,363 3.2 2,864 2,810 1.9 

... 590 701 -15.9 317 349 -9.0 

2,239 2,634 -15.0 1,178 1,238 -4.9

4,831 4,445 8.7 2,561 2,354 8.8 

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

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

FDIC Quarterly Banking Profile 

Second Quarter 1999 11 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE III-B. First Half 1999, FDIC-Insured Savings Institutions 

First Half 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 

1,652 681 828 108 35 643 227 431 126 114 111 

Total assets (in billions)....................................... $1,125.8 $35.1 $241.4 $220.6 $628.7 $372.7 $68.9 $179.5 $39.1 $72.4 $393.1 

Total deposits (in billions).................................... 699.3 28.4 185.9 140.9 344.0 259.7 48.7 122.4 26.5 42.5 199.4 

Net income (in millions)....................................... 5,534.0 117.3 1,086.1 1,227.1 3,103.4 1,786.5 305.3 954.7 157.1 400.9 1,929.5 

% of unprofitable institutions................................. 6.6 12.2 2.4 4.6 2.9 4.4 10.1 7.2 8.7 7.0 7.2 

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

Performance ratios (annualized, %) 

46.9 38.3 50.1 66.7 74.3 51.2 48.0 42.0 36.5 49.1 47.7 

Yield on earning assets....................................... 7.25 7.32 7.34 7.51 7.13 7.17 7.45 7.47 7.35 7.53 7.15 

Cost of funding earning assets.............................. 4.16 3.98 3.95 4.14 4.26 3.87 4.13 4.31 4.36 4.31 4.32 

Net interest margin............................................. 3.10 3.34 3.39 3.37 2.87 3.30 3.32 3.16 2.99 3.22 2.82 

Noninterest income to earning assets..................... 0.93 1.26 0.67 1.28 0.89 0.81 1.21 1.15 0.73 1.23 0.86 

Noninterest expense to earning assets.................. 2.37 3.54 2.70 2.71 2.06 2.53 3.03 2.63 2.33 2.74 1.93 

Credit loss provision to assets*.............................. 0.14 0.08 0.10 0.33 0.10 0.10 0.23 0.23 0.12 0.26 0.10 

Net operating income to assets.............................. 0.88 0.59 0.77 0.96 0.91 0.86 0.72 0.83 0.74 1.00 0.94 

Return on assets................................................ 1.01 0.68 0.92 1.15 1.01 0.98 0.92 1.08 0.83 1.15 1.00 

Return on equity................................................ 11.70 5.49 8.52 12.73 13.64 10.15 9.03 11.78 8.20 13.98 14.38 

Net charge-offs to loans and leases........................ 0.16 0.09 0.09 0.36 0.13 0.10 0.22 0.22 0.16 0.21 0.17 

Credit loss provision to net charge-offs.................. 132.95 140.31 164.71 141.96 115.10 167.29 149.08 149.76 106.78 183.56 91.24 

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

Condition Ratios (%) 

... 56.95 76.59 65.79 56.64 51.98 59.10 66.11 58.77 60.79 60.33 50.66 

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

Loss allowance to: 

93.02 94.24 94.19 92.91 92.54 93.17 93.18 92.08 93.43 92.11 93.41 

Loans and leases............................................. 0.94 0.76 0.86 1.21 0.89 1.05 0.88 0.79 0.67 0.88 0.98 

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

Noncurrent assets plus 

... 123.89 84.21 120.09 110.10 136.50 115.03 144.26 104.84 122.01 88.69 153.01 

other real estate owned to assets........................ 0.62 0.70 0.59 0.92 0.53 0.66 0.58 0.67 0.51 0.86 0.54 

Noncurrent RE loans to RE loans........................... 0.75 0.86 0.69 1.12 0.66 0.94 0.59 0.73 0.52 1.08 0.62 

Equity capital ratio............................................. 8.55 12.21 10.71 8.88 7.40 9.59 10.30 9.13 10.21 8.17 6.89 

Core capital (leverage) ratio................................. 7.93 11.93 10.31 8.37 6.64 8.77 9.93 8.29 9.42 8.04 6.47 

Gross real estate assets to gross assets.................. 77.56 68.00 71.56 71.97 82.37 72.27 71.72 74.17 76.36 66.33 87.35 

Gross 1-4 family mortgages to gross assets............ 46.61 48.68 46.52 37.66 49.67 40.18 45.94 51.90 51.19 35.75 51.94 

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

Structural Changes (YTD) 

... 105.05 80.99 86.40 99.15 119.53 84.74 96.16 106.00 103.46 118.29 130.46 

New Charters................................................ 16 15 1 0 0 2 4 8 1 0 1 

Thrifts absorbed by mergers.............................. 47 19 23 5 0 13 10 15 2 6 1 

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

Prior First Halves**

 (The way it was...) 

... 0 0 0 0 0 0 0 0 0 0 0 

Number of institutions...............................1998 1,728 726 848 119 35 673 237 450 128 119 121 

...............................................1996 1,979 879 942 121 37 741 296 508 150 130 154 

...............................................1994 2,216 1,031 1,016 140 29 813 354 558 162 143 186 

Total assets (in billions).............................1998 $1,044.9 $37.8 $247.9 $231.0 $528.1 $348.0 $65.8 $171.3 $33.8 $64.1 $361.8 

................................................1996 1,022.9 45.6 276.3 246.4 454.7 355.2 69.2 171.4 51.8 78.3 297.1 

................................................1994 999.1 52.4 295.1 299.0 352.5 337.4 83.1 151.6 52.2 55.8 318.8 

Return on assets (%)................................1998 1.05 0.76 0.99 0.98 1.13 1.01 0.83 0.97 0.93 1.24 1.16 

................................................1996 1.01 0.73 0.90 0.96 1.12 0.98 0.88 0.99 0.92 2.49 0.72 

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

Net charge-offs to loans & leases (%) 

0.62 0.84 0.81 0.74 0.33 0.87 0.86 0.73 0.45 1.09 0.19 

................................................1998 0.20 0.09 0.10 0.31 0.22 0.17 0.39 0.20 0.17 0.42 0.17 

................................................1996 0.32 0.10 0.18 0.29 0.43 0.29 0.34 0.12 0.15 0.33 0.46 

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

Noncurrent assets plus 

0.54 0.11 0.21 0.53 0.86 0.46 0.21 0.11 0.14 0.27 0.94 

OREO to assets (%)***.....................1998 0.82 0.79 0.70 1.12 0.73 0.93 0.73 0.65 0.57 1.02 0.79 

................................................1996 1.16 1.01 1.03 1.29 1.20 1.33 1.32 0.59 0.62 1.00 1.40 

.................................................1994 1.77 1.25 1.55 1.86 1.95 2.25 1.24 0.60 0.62 1.61 2.17 

Equity capital ratio (%)..............................1998 8.94 12.04 10.63 9.17 7.81 9.88 10.10 9.34 9.51 8.74 7.61 

................................................1996 8.40 11.13 9.88 8.24 7.31 8.96 9.37 9.03 8.60 7.88 7.23 

................................................1994 8.00 9.68 8.90 7.93 7.06 8.26 8.54 8.66 7.91 7.40 7.39 

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

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

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 12 Second Quarter 1999 
 

 

 

 

 

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

SECOND 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 

1,652 681 828 108 35 643 227 431 126 114 111 

Total assets (in billions)....................................... $1,125.8 $35.1 $241.4 $220.6 $628.7 $372.7 $68.9 $179.5 $39.1 $72.4 $393.1 

Total deposits (in billions).................................... 699.3 28.4 185.9 140.9 344.0 259.7 48.7 122.4 26.5 42.5 199.4 

Net income (in millions)....................................... 2,864.0 58.1 523.1 643.9 1,638.9 964.9 138.8 479.8 86.7 217.1 976.8 

% of unprofitable institutions................................. 7.0 12.6 3.3 2.8 0.0 4.5 9.7 9.3 8.7 6.1 6.3 

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

Performance Ratios (annualized, %) 

49.9 39.9 54.2 69.4 80.0 55.1 48.0 46.6 38.1 50.0 49.5 

Yield on earning assets....................................... 7.25 7.34 7.35 7.55 7.10 7.16 7.53 7.45 7.34 7.57 7.14 

Cost of funding earning assets.............................. 4.15 3.97 3.94 4.13 4.24 3.85 4.11 4.28 4.34 4.27 4.33 

Net interest margin............................................. 3.10 3.37 3.42 3.42 2.86 3.31 3.42 3.17 3.00 3.31 2.80 

Noninterest income to earning assets..................... 0.94 1.30 0.65 1.34 0.89 0.83 1.13 1.23 0.76 1.31 0.84 

Noninterest expense to earning assets.................. 2.34 3.63 2.72 2.72 1.98 2.46 3.09 2.69 2.27 2.76 1.87 

Credit loss provision to assets*.............................. 0.14 0.09 0.11 0.33 0.09 0.10 0.22 0.24 0.15 0.25 0.10 

Net operating income to assets.............................. 0.92 0.57 0.75 1.02 0.97 0.94 0.71 0.85 0.82 1.10 0.95 

Return on assets................................................ 1.03 0.67 0.88 1.18 1.05 1.05 0.82 1.08 0.90 1.23 1.00 

Return on equity................................................ 11.99 5.44 8.15 13.20 14.23 10.86 8.06 11.75 8.74 14.90 14.47 

Net charge-offs to loans and leases........................ 0.17 0.11 0.10 0.31 0.16 0.12 0.21 0.19 0.19 0.20 0.20 

Credit loss provision to net charge-offs*.................. 122.97 126.76 160.21 166.49 84.99 135.93 150.25 175.74 111.75 181.44 75.55 

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

Structural Changes (QTR) 

... 55.88 77.19 66.12 55.66 50.16 57.15 67.07 58.72 58.65 58.80 49.63 

New charters................................................... 8 8 0 0 0 1 1 5 1 0 0 

Thrifts absorbed by mergers.............................. 19 6 11 2 0 6 4 5 1 3 0 

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

PRIOR SECOND QUARTERS**

 (The way it was...) 

... 0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%)................................1998 1.09 0.73 0.96 0.93 1.24 1.00 0.77 0.96 0.86 1.12 1.30 

.................................................1996 1.03 0.75 0.93 0.96 1.16 1.02 0.88 1.06 0.93 2.33 0.75 

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

Net charge-offs to loans & leases (%) 

0.72 0.78 0.81 0.65 0.70 0.86 0.92 0.92 0.03 1.16 0.46 

.................................................1998 0.20 0.08 0.12 0.30 0.21 0.19 0.40 0.22 0.16 0.41 0.13 

.................................................1996 0.33 0.12 0.18 0.31 0.46 0.32 0.34 0.13 0.18 0.41 0.46 

.................................................1994 0.58 0.14 0.23 0.44 1.02 0.41 0.19 0.10 0.12 0.21 1.11 

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

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

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

Rhode Island, Vermont, U.S. Virgin Islands

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

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

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

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

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

FDIC Quarterly Banking Profile 

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

June 30, 1999 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 0.80 1.62 0.93 0.81 0.71 0.75 0.88 0.86 1.07 1.14 0.73 

Construction, development, and land..................... 1.04 1.80 1.18 1.00 0.86 0.79 0.89 1.61 1.20 1.00 0.86 

Commercial real estate....................................... 0.72 1.56 0.70 0.96 0.48 0.71 0.87 0.91 0.89 0.96 0.51 

Multifamily residential real estate........................... 0.31 0.71 0.34 0.36 0.27 0.35 0.76 0.27 0.27 0.40 0.27 

Home equity loans............................................. 0.50 0.73 0.56 0.43 0.49 0.57 0.30 0.61 0.58 0.14 0.33 

Other 1-4 Family residential................................. 0.86 1.67 1.00 0.86 0.77 0.81 0.92 0.87 1.13 1.27 0.81 

Commercial and industrial loans.............................. 1.11 1.66 1.44 1.10 0.83 0.96 1.37 1.80 1.30 0.85 0.95 

Loans to individuals............................................. 1.56 2.25 1.73 1.64 1.43 1.43 2.09 1.60 1.71 0.85 2.12 

Credit card loans............................................. 1.70 1.16 4.38 2.50 0.89 1.19 2.30 1.96 5.02 0.59 4.32 

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

Percent of Loans Noncurrent* 

... 1.52 2.29 1.56 1.25 1.59 1.48 2.05 1.49 1.58 1.04 1.69 

All real estate loans............................................. 0.75 0.86 0.69 1.12 0.66 0.94 0.59 0.73 0.52 1.08 0.62 

Construction, development, and land..................... 0.79 1.02 1.00 0.87 0.53 0.89 0.47 1.41 0.90 0.26 0.96 

Commercial real estate....................................... 1.01 0.94 0.94 1.30 0.86 1.21 0.92 1.06 0.99 0.64 0.74 

Multifamily residential real estate........................... 0.54 1.18 0.51 0.92 0.38 0.74 0.73 0.48 0.31 3.51 0.27 

Home equity loans............................................. 0.27 0.17 0.29 0.25 0.27 0.33 0.09 0.31 0.11 0.05 0.21 

Other 1-4 Family residential................................. 0.77 0.85 0.66 1.18 0.69 0.94 0.59 0.71 0.47 1.21 0.66 

Commercial and industrial loans.............................. 1.04 1.86 1.27 1.15 0.73 1.11 0.90 1.30 0.95 0.56 1.06 

Loans to individuals............................................. 0.71 0.88 0.78 0.97 0.53 0.53 0.70 0.86 0.66 0.68 0.79 

Credit card loans............................................. 1.28 0.64 3.45 1.46 0.98 0.87 1.19 0.86 2.32 1.15 3.33 

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

Percent of Loans Charged-off (net, YTD) 

... 0.54 0.89 0.61 0.75 0.40 0.46 0.61 0.86 0.59 0.35 0.30 

All real estate loans............................................. 0.05 0.04 0.04 0.05 0.05 0.04 0.04 0.05 0.06 0.03 0.06 

Construction, development, and land..................... 0.04 0.10 0.07 0.01 0.04 0.08 0.04 0.14 0.03 0.01 -0.04 

Commercial real estate....................................... -0.03 0.05 -0.04 0.00 -0.06 -0.06 0.08 0.02 0.41 -0.01 -0.12 

Multifamily residential real estate........................... -0.07 0.12 0.05 -0.05 -0.10 -0.02 0.04 0.06 -0.01 0.02 -0.12 

Home equity loans............................................. 0.14 0.08 0.10 0.11 0.19 0.17 0.09 0.04 0.43 0.18 0.19 

Other 1-4 Family residential................................. 0.07 0.03 0.04 0.07 0.07 0.05 0.03 0.05 0.02 0.04 0.10 

Commercial and industrial loans.............................. 0.32 0.41 0.37 0.49 0.18 0.23 0.87 0.25 0.59 0.26 0.35 

Loans to individuals............................................. 1.45 0.63 0.79 2.60 1.07 0.85 1.60 1.51 0.98 0.91 2.98 

Credit card loans............................................. 3.96 1.35 3.19 6.13 2.48 2.55 4.71 3.91 12.07 1.30 12.47 

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

Loans Outstanding (in billions) 

... 0.69 0.60 0.64 0.91 0.60 0.46 1.01 0.72 0.42 0.60 1.01 

All real estate loans............................................. $656.5 $20.9 $146.6 $116.6 $372.4 $194.3 $40.1 $111.0 $24.3 $38.1 $248.7 

Construction, development, and land..................... 26.1 1.1 8.3 6.4 10.3 5.1 3.9 4.8 1.3 6.3 4.8 

Commercial real estate....................................... 49.9 1.9 16.8 13.4 17.8 23.0 3.5 5.9 2.1 4.1 11.3 

Multifamily residential real estate........................... 52.2 0.6 8.4 13.0 30.2 15.5 0.8 6.5 0.8 1.6 27.0 

Home equity loans............................................. 17.7 0.4 4.7 4.0 8.5 7.0 1.6 4.6 0.5 0.4 3.5 

Other 1-4 Family residential................................. 510.4 16.8 108.2 79.8 305.6 143.7 30.2 89.1 19.6 25.6 202.1 

Commercial and industrial loans.............................. 23.7 0.8 5.5 6.9 10.5 10.8 2.0 3.3 1.0 2.7 3.9 

Loans to individuals............................................. 57.6 1.5 9.5 16.6 29.9 15.7 4.9 15.5 2.3 9.7 9.6 

Credit card loans............................................. 12.8 0.1 0.6 5.2 7.0 2.7 0.8 3.7 0.1 4.0 1.6 

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

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

... 44.8 1.5 8.9 11.5 23.0 13.0 4.2 11.7 2.2 5.7 8.0 

All other real estate owned.................................... $1,353.7 $37.0 $248.5 $468.9 $599.4 $412.4 $110.9 $211.0 $48.7 $120.3 $450.4 

Construction, development, and land..................... 183.7 4.6 33.4 22.2 123.6 26.6 84.2 20.0 14.2 8.0 30.8 

Commercial real estate....................................... 321.9 5.3 55.7 189.4 71.5 150.1 11.0 50.1 12.0 34.6 64.1 

Multifamily residential real estate........................... 120.3 1.3 18.8 50.1 50.1 27.5 1.4 12.5 0.1 28.0 51.0 

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

Troubled Real Estate Asset Rates*** 

(% of total RE assets) 

... 779.6 26.4 145.4 222.5 385.1 223.9 36.5 131.7 27.2 51.5 308.7 

All real estate loans............................................. 0.96 1.04 0.86 1.52 0.82 1.15 0.86 0.92 0.72 1.39 0.80 

Construction, development, and land..................... 1.48 1.42 1.40 1.22 1.71 1.41 2.59 1.82 2.01 0.38 1.60 

Commercial real estate....................................... 1.65 1.19 1.27 2.70 1.25 1.85 1.23 1.91 1.55 1.51 1.29 

Multifamily residential real estate........................... 0.77 1.40 0.73 1.30 0.54 0.92 0.89 0.67 0.31 5.15 0.46 

1-4 family residential.......................................... 0.90 0.98 0.77 1.40 0.80 1.06 0.68 0.83 0.59 1.38 0.80 

* 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 Second Quarter 1999 
ALL FDIC-INSURED INSTITUTIONS 

• BIF Balance Falls Slightly As Loss Expectations Rise 

• SAIF Surpasses $10 Billion For The First Time 

• One Insured Institution Fails In The Second Quarter 

The aggregate growth characteristics of the 10,350 

FDIC-insured institutions in the second quarter of 1999 

exhibited the seasonal characteristics of prior second 

quarters in the 1990s. Asset growth of 1.1 percent during the three-month period slightly exceeded deposit 

growth of 1.0 percent, while insured deposits grew a 

modest 0.1 percent. Deposit growth was concentrated 

in uninsured deposit categories, such as large (over 

$100,000) domestic deposits, up 2.0 percent, and foreign-office deposits, up 3.3 percent. Insured-deposit 

growth for the overall industry has lagged the growth of 

uninsured funding in almost all quarters since 1992. As 

a result, insured deposits as a percentage of domestic 

liabilities fell to 54.2 percent on June 30, 1999, from 55.0 

percent on March 31 and 56.9 percent in June 1998. 

The Bank Insurance Fund (BIF) stood at $29.831 billion 

(unaudited) on June 30, having fallen slightly from 

$29.852 billion on March 31. The decline is attributable 

to a larger quarterly loss provision for the anticipated 

failure of insured institutions. Failure-related loss 

reserves were $219 million on June 30, up from $60 million on March 31. BIF-insured deposits grew by $5 billion, or 0.2 percent, during the second quarter, causing 

the fund’s reserve ratio – the ratio of the fund balance to 

estimated insured deposits – to fall by 1 basis point to 

1.40 percent. 

From March 31 to June 30, the Savings Association 

Insurance Fund (SAIF) grew by $129 million, surpassing $10 billion for the first time and ending the quarter at 

$10.1 billion (unaudited). In contrast to BIF-insured 

deposits, deposits insured by the SAIF declined by $2.7 

billion, or 0.4 percent, during the quarter despite significant (1.5 percent) growth in the total assets of SAIF 

members. A portion of this discrepancy can be 

explained by the merger of BIF-member savings banks 

into SAIF-member savings associations, which increase 

SAIF-member assets without adding to SAIF-insured 

deposits. The decline in SAIF-insured deposits is due to 

greater reliance on alternative (uninsured) funding 

sources. Excluding the $978 million in the SAIF Special 

Reserve, the unrestricted fund balance of $9.1 billion 

was 1.29 percent of estimated insured deposits on June 

30, up from 1.27 percent on March 31. The SAIF estimated liability for anticipated failures was $42 million on 

June 30, down from $52 million on March 31. 

Only one insured institution – a BIF-member commercial bank with total assets of $17 million – failed in the 

second quarter. For the first half of 1999, two insured 

institutions failed, both of which were BIF-member commercial banks, with aggregate assets of $30 million. 

The most recent SAIF-member failure occurred in 

August 1996. 

INTERSTATE BRANCHES AS A PERCENT OF TOTAL OFFICES, JUNE 30, 1999 

AK 

13.9 

AR 

22.2 

CO 

28.1 

CT: 37.8 

DE: 15.4 

DC: 92.7 

HI 

0.3 

IN 

18.6 

IA 

15.7 

KS 

17.8 

LA 

10.3 

ME 

15.1 

MD: 37.3 

MA: 14.1 

MI 

20.2 

MS 

24.2 

MO 

16.7 

NE 

7.0 

NH: 16.3 

NJ: 35.6 

NY 

19.9 

ND 

7.6 

OH 

3.3 

OK 

8.9 

PA 

12.6 

RI: 23.3 

SC 

32.8 

SD 

4.8 

TX 

17.5 

VT: 15.1 

WA 

46.9 

PR 

3.7 

OR 

69.9 

79.3 

AZ 

44.7 

IL 

11.7 

Greater than 30% 

Between 15% and 30% 

Between 1% and 15% 

Less than or equal to 1% 

ID 

MN 

0.8 WI 

1.0 

FL 

56.0 

Note: Figures reflect percent of branches owned by out-of-state 

commercial banks and savings institutions. 

WY 

13.4 

MT 

1.8 

GA 

40.4 

AL 

5.5 

NC 

3.6 

NV 

54.7 

CA 

2.9 

UT 

20.6 

NM 

17.2 

VA 

KY 33.9 

17.0 

TN 

15.1 

WV 

16.9 

FDIC Quarterly Banking Profile 

Second Quarter 1999 15 All FDIC-Insured Institutions 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

Number of institutions reporting.............................. 10,327 10,712 10,463 10,922 11,452 11,970 12,603 

Total assets.........................................................$ 6,593,506 $6,226,419 $6,529,335 $6,041,135 $5,606,608 $5,338,418 $5,019,085 

Total deposits...................................................... 4,380,071 4,209,350 4,386,336 4,125,862 3,925,058 3,769,480 3,611,618 

Number of problem institutions................................. 76 82 84 92 117 193 318 

Assets of problem institutions (in billions).................. $9 $8 $11 $6 $12 $31 $73 

Number of failed/assisted institutions........................ 2 1 3 1 6 8 15 

Assets of failed/assisted institutions (in billions)......... $0.03 $0.04 $0.37 $0.03 $0.22 $1.21 $1.57 

** As of June 30. 

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

(dollar figures in millions) 

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

Preliminary 

2nd Quarter 1st Quarter 2nd Quarter %Change 

1999 1999 1998 98:2-99:2 

... 10,327 10,390 10,712 -3.6 

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

CONDITION DATA 

1,864,525 1,859,836 1,841,340 1.3 

Total assets..................................................................... $6,593,506 $6,519,683 $6,226,420 5.9

 Loans secured by real estate............................................. 2,029,644 1,992,758 1,918,042 5.8 

1-4 Family residential...................................................... 1,282,931 1,267,342 1,249,205 2.7 

Home equity loans...................................................... 109,407 112,497 114,428 -4.4 

Multifamily residential property.......................................... 99,556 99,697 98,818 0.7 

Commercial real estate................................................... 441,014 429,342 395,789 11.4 

Construction, development, and land................................. 144,202 136,387 116,533 23.7 

Other real estate loans................................................... 61,942 59,991 57,698 7.4 

Commercial & industrial loans 959,771 944,119 867,195 10.7

 Loans to individuals......................................................... 592,021 602,553 596,557 -0.8

 Credit cards & related plans.......................................... 205,649 220,243 227,910 -9.8

 Other loans & leases...................................................... 472,276 441,671 416,230 13.5

 Less: Unearned income & contra accounts........................ 3,740 3,842 4,423 -15.4

 Total loans & leases......................................................... 4,049,971 3,977,259 3,793,601 6.8

 Less: Reserve for losses................................................... 64,577 64,865 63,367 1.9 

Net loans and leases......................................................... 3,985,394 3,912,394 3,730,235 6.8 

Securities........................................................................ 1,297,340 1,283,351 1,146,049 13.2 

Other real estate owned...................................................... 4,268 4,665 5,294 -19.4 

Goodwill and other intangibles............................................. 100,968 98,131 88,842 13.6 

All other assets.................................................................. 1,205,536 1,221,141 1,256,000 -4.0 

Total liabilities and capital................................................... 6,593,506 6,519,683 6,226,420 5.9

 Deposits....................................................................... 4,380,071 4,336,549 4,209,351 4.1

 Other borrowed funds...................................................... 1,274,636 1,227,967 1,102,374 15.6

 Subordinated debt............................................................ 77,516 76,429 70,202 10.4

 All other liabilities............................................................ 298,873 313,431 305,292 -2.1

 Equity capital.................................................................. 562,410 565,308 539,201 4.3 

Loans and leases 30-89 days past due................................. 43,417 45,838 42,788 1.5 

Noncurrent loans and leases................................................ 36,796 38,235 35,816 2.7 

Restructured loans and leases............................................. 3,563 3,838 4,848 -26.5 

Direct and indirect investments in real estate........................... 926 1,105 1,154 -19.8 

Mortgage-backed securities................................................ 666,143 678,346 580,660 14.7 

Earning assets.................................................................. 5,774,380 5,709,383 5,431,595 6.3 

FHLB Advances (Source: TFR and FHFB).............................. 320,759 292,711 209,595 53.0 

Unused loan commitments................................................... 3,908,109 3,938,399 3,674,236 6.4 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

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

1999 1998 %Change 1999 1998 98:2-99:2 

... $217,225 $215,014 1.0 $108,701 $108,420 0.3 

106,244 110,162 -3.6 52,868 55,339 -4.5

... 110,981 104,852 5.8 55,832 53,081 5.2 

11,120 10,803 2.9 5,316 5,561 -4.4 

73,954 63,539 16.4 36,955 32,607 13.3 

... 112,512 103,721 8.5 56,877 52,344 8.7 

... 1,750 2,672 -34.5 587 1,232 -52.4 

22,546 19,677 14.6 11,354 10,086 12.6 

... -37 519 N/M -1 -11 N/M

... 40,470 37,381 8.3 19,826 18,919 4.8 

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

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 16 Second Quarter 1999 
 

 

 

 

TABLE III-C. Selected Insurance Fund Indicators 

(dollar figures in millions) Preliminary 

2nd Quarter 1st Quarter 2nd Quarter %Change 

1999 1999* 1998 98:2-99:2 

Bank Insurance Fund* 

Reserve ratio (%)**..................................................................... 1.40 1.41 1.40 0.0 

Fund balance (unaudited)............................................................ $29,831 $29,852 $28,931 3.1 

Estimated insured deposits......................................................... 2,128,575 2,123,618 2,070,805 2.8 

SAIF-member Oakars............................................................... 41,847 39,764 33,144 26.3 

BIF-members........................................................................ 2,086,728 2,083,854 2,037,661 2.4 

Assessment base..................................................................... 2,952,254 2,939,523 2,851,735 3.5 

SAIF-member Oakars............................................................... 43,442 42,303 34,918 24.4 

BIF-members........................................................................ 2,908,812 2,897,220 2,816,817 3.3 

Savings Association Insurance Fund 

Reserve ratio (%)**..................................................................... 1.29 1.27 1.37 -5.8 

Fund balance (unaudited)............................................................ $10,066 $9,937 $9,610 4.7 

Special Reserve..................................................................... 978 978 N/A N/A 

Unrestricted........................................................................... 9,088 8,959 9,610 -5.4 

Estimated insured deposits......................................................... 704,325 707,029 699,119 0.7 

BIF-member Oakars............................................................... 261,384 261,133 270,884 -3.5 

SAIF-member Sassers............................................................ 67,361 66,718 60,654 11.1 

Other SAIF members............................................................... 375,580 379,177 367,581 2.2 

Assessment base..................................................................... 749,115 750,491 733,904 2.1 

BIF-member Oakars............................................................... 261,771 261,539 271,390 -3.5 

SAIF-member Sassers............................................................ 75,926 73,998 66,433 14.3 

Other SAIF members............................................................... 411,418 414,954 396,081 3.9 

* Includes U.S. branches of foreign banks. 

** Fund balance as a percent of estimated insured deposits. For SAIF, the Special Reserve is excluded. Insured deposits for prior periods may

 reflect adjustments. 

Insurance Fund Reserve Ratios* Fund Balance Insured Deposits* 

Percent of Insured Deposits (Millions) 

BIF Fund BIF-Insured Unrestricted SAIF-Insured 

Balance Deposits SAIF Fund Deposits 

Balance 

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

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 2,134,437 9,840 716,028 

3/99 29,852 2,123,618 8,959 707,029 

6/99 29,831 2,128,575 9,088 704,325 

12/92 12/93 12/94 12/95 12/96 12/97 12/98 3/99 6/99 

*Insured deposit amounts are estimates. 

*Insurance fund balance as a percent of total insured deposits. 1999 fund balance amounts are unaudited. 

For SAIF, Special Reserve is excluded. 

TABLE IV-C. Closed/Assisted Institutions 

-0.01 

0.69 

1.30 1.34 1.38 1.39 1.41 1.40 

0.04 

0.17 

0.28 

0.47 

1.30 1.36 1.37 

1.27 1.29 

1.15 

BIF 

SAIF 

Target Ratio 

(dollar figures in millions) 

1999* 1998* 1998 1997 1996 1995 1994 

BIF Members 

Number of institutions............................................................ 2 1 3 1 5 6 13 

Total assets........................................................................... $30 $42 $371 $27 $182 $753 $1,392 

SAIF Members 

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

Total assets........................................................................... $0 $0 $0 $0 $35 $426 $129 

* Through June 30. 

FDIC Quarterly Banking Profile 

Second Quarter 1999 17 All FDIC-Insured Institutions 
 

 

 

 

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

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

BIF Members 

Number of institutions reporting................................................... 8,927 9,237 9,031 9,404 9,823 10,243 10,760 

BIF-member Oakars............................................................... 732 766 742 778 793 807 719 

Other BIF-members............................................................... 8,195 8,471 8,289 8,626 9,030 9,436 10,041 

Total assets..............................................................................$ 5,737,074 $5,478,332 $5,701,157 $5,285,411 $4,857,761 $4,577,897 $4,248,300 

Total deposits........................................................................... 3,841,968 3,704,406 3,843,854 3,611,453 3,404,203 3,225,649 3,062,717 

Net income.............................................................................. 36,228 33,477 64,358 61,462 54,483 50,779 46,882 

Return on assets (%).................................................................. 1.27 1.24 1.18 1.22 1.17 1.15 1.14 

Return on equity (%).................................................................. 14.75 14.64 13.81 14.44 14.14 14.32 14.43 

Noncurrent assets plus OREO to assets (%)................................. 0.63 0.65 0.64 0.67 0.77 0.89 1.06 

Number of problem institutions................................................... 63 63 68 73 86 151 264 

Assets of problem institutions...................................................... $4,638 $4,962 $5,326 $4,598 $6,624 $20,166 $42,311 

Number of failed/assisted institutions............................................. 2 1 3 1 5 6 13 

Assets of failed/assisted institutions............................................. $30 $42 $371 $27 $182 $753 $1,392 

SAIF Members 

Number of institutions reporting................................................... 1,400 1,475 1,432 1,518 1,629 1,727 1,843 

SAIF-member Oakars............................................................ 115 116 115 112 94 77 55 

Other SAIF-members............................................................... 1,285 1,359 1,317 1,406 1,535 1,650 1,788 

Total assets.............................................................................. $856,431 $748,087 $828,177 $755,724 $748,847 $760,520 $770,785 

Total deposits........................................................................... 538,103 504,944 542,481 514,408 520,854 543,831 548,900 

Net income.............................................................................. 4,241 3,903 7,598 6,485 4,883 5,584 4,101 

Return on assets (%).................................................................. 1.01 1.06 0.98 0.94 0.67 0.76 0.56 

Return on equity (%).................................................................. 12.08 12.20 11.34 11.13 8.07 9.47 7.16 

Noncurrent assets plus OREO to assets (%)................................. 0.68 0.87 0.80 0.98 1.07 1.12 1.23 

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

Assets of problem institutions...................................................... $4,241 $2,952 $5,992 $1,662 $5,548 $10,846 $30,336 

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

Assets of failed/assisted institutions............................................. $0 $0 $0 $0 $35 $426 $129 

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

** Through June 30, ratios annualized where appropriate. 

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

(dollar figures in millions) 

June 30, 1999 

Commercial Banks and Savings Institutions 

Number of Total Domestic 

Institutions Assets Deposits* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks............................................. 8,675 5,467,745 3,086,707 1,931,504 264,798 2,196,302 

BIF-member........................................................................ 8,565 5,390,358 3,032,907 1,916,833 234,838 2,151,671 

SAIF-member..................................................................... 110 77,388 53,800 14,671 29,961 44,631 

FDIC-Supervised.................................................................. 5,264 966,617 722,756 493,334 60,506 553,840 

OCC-Supervised.................................................................. 2,410 3,193,125 1,755,877 1,102,638 153,957 1,256,595 

Federal Reserve-Supervised................................................... 1,001 1,308,004 608,074 335,532 50,335 385,868 

FDIC-Insured Savings Institutions............................................. 1,652 1,125,761 699,253 195,773 439,527 635,300 

OTS-Supervised Savings Institutions.......................................... 1,114 846,710 502,605 71,644 385,947 457,591 

BIF-member........................................................................ 41 124,796 59,387 45,479 10,367 55,846 

SAIF-member..................................................................... 1,073 721,913 443,218 26,166 375,580 401,746 

FDIC-Supervised State Savings Banks....................................... 538 279,051 196,649 124,128 53,580 177,708 

BIF-member........................................................................ 321 221,921 155,608 123,117 16,179 139,296 

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

Total Commercial Banks and 

 217 57,130 41,041 1,011 37,401 38,412 

Savings Institutions................................................... 10,327 6,593,506 3,785,960 2,127,277 704,325 2,831,602 

BIF-member........................................................................... 8,927 5,737,075 3,247,901 2,085,429 261,384 2,346,813 

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

Other FDIC-Insured Institutions 

 1,400 856,431 538,059 41,847 442,942 484,789 

U.S. Branches of Foreign Banks................................................ 23 9,002 3,039 1,298 0 1,298 

Total FDIC-Insured Institutions....................................... 10,350 6,602,509 3,788,999 2,128,575 704,325 2,832,900 

* Excludes $594 billion in foreign office deposits, which are uninsured. 

FDIC Quarterly Banking Profile 

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

BIF Assessment Base Distribution 

Assessable Deposits in Millions as of June 30, 1999 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 1999 

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

...

...

...

 8,415 

 $2,869,084 

 148 

 $25,425 

 5 

 $421 

94.0% 

97.2% 

1.7% 

0.9% 

0.1% 

0.0% 

297 3.3% 

$50,630 1.7% 

18 0.2% 

$2,372 0.1% 

3 0.0% 

$183 0.0% 

41 

$1,461 

10 

$2,203 

13 

$475 

0.5% 

0.0% 

0.1% 

0.1% 

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 June 30, 1999 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 1999 

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

...

...

...

 1,294 

 $716,859 

 16 

 $5,011 

 1 

 $539 

92.4% 

95.7% 

1.1% 

0.7% 

0.1% 

0.1% 

71 5.1 

$22,730 3.0 

4 0.3 

$363 0.0 

1 0.1 

$48 0.0 

7 

$690 

3 

$2,702 

3 

$173 

0.5% 

0.1% 

0.2% 

0.4% 

0.2% 

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 1999 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 

Second Quarter 1999 19 All FDIC-Insured Institution 
NumberofFDIC-Insured"Problem"Institutions,

1991-1999

AssetsofFDIC-Insured"Problem"Institutions,

1991-1999

NUMBER OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1991–1999 

Number of Institutions 

1,426 

1,063 

572 

318 

193 

117 112 103 98 92 84 82 88 84 80 76 

Savings Institutions 

Commercial Banks 

12/91 12/92 12/93 12/94 12/95 12/96 3/97 6/97 9/97 12/97 3/98 6/98 9/98 12/98 3/99 6/99 

Savings Institutions 410 276 146 71 49 35 35 29 27 21 16 18 18 15 16 14 

Commercial Banks 1,016 787 426 247 144 82 77 74 71 71 68 64 70 69 64 62 

ASSETS OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1991–1999 

$ Billions 

$819 

$592 

$334 

$72 

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

Savings Institutions 

Commercial Banks 

12/91 12/92 12/93 12/94 12/95 12/96 3/97 6/97 9/97 12/97 3/98 6/98 9/98 12/98 3/99 6/99 

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

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

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 20 Second Quarter 1999 
NOTES TO USERS 

This publication contains financial data and other information 

for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding the 

comparability of source data and reporting differences over 

time. The information presented in the FDIC Quarterly Banking Profile is divided into the following groups of institutions: 

FDIC-Insured Commercial Banks 

(Tables I-A through V-A.) 

This section covers commercial banks insured by the FDIC 

either through the Bank Insurance Fund (BIF) or through the 

Savings Association Insurance Fund (SAIF). These institutions are regulated by and submit financial reports to one of 

the three federal commercial bank regulators (the Board of 

Governors of the Federal Reserve System, the FDIC or the 

Office of the Comptroller of the Currency). 

FDIC-Insured Savings Institutions 

(Tables I-B through V-B.) 

This section covers savings institutions insured by either BIF 

or SAIF that operate under state or federal banking codes 

applicable to thrift institutions, except for one self-liquidating 

institution primarily funded by the FSLIC Resolution Fund 

(FRF). Savings institutions in Resolution Trust Corporation 

conservatorships are also excluded from these tables while 

in conservatorship, where applicable. The institutions covered in this section are regulated by and submit financial 

reports to one of two Federal regulators — the FDIC or the 

Office of Thrift Supervision (OTS). 

FDIC-Insured Institutions by Insurance Fund 

(Tables I-C through VII-C.) 

Summary balance-sheet and earnings data are provided for 

commercial banks and savings institutions according to 

insurance fund membership. BIF-member institutions may 

acquire SAIF-insured deposits, resulting in institutions with 

some deposits covered by both insurance funds. Also, SAIF 

members may acquire BIF-insured deposits. The insurance 

fund membership does not necessarily reflect which fund 

insures the largest percentage of an institution’s deposits. 

Therefore, the BIF-member and the SAIF-member tables 

each include deposits from both insurance funds. Depository 

institutions that are not insured by the FDIC through either 

the BIF or SAIF are not included in the FDIC Quarterly 

Banking Profile. U.S. branches of institutions headquartered 

in foreign countries and non-deposit trust companies are not 

included unless otherwise indicated. Efforts are made to 

obtain financial reports for all active institutions. However, in 

some cases, final financial reports are not available for institutions that have closed or converted their charter. 

DATA SOURCES 

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Call Reports and the OTS 

Thrift Financial Reports submitted by all FDIC-insured 

depository institutions. This information is stored on and 

retrieved from the FDIC’s Research Information System 

(RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting 

and accounting requirements of the FFIEC Call Reports. 

Beginning in March 1997, both Thrift Financial Reports and 

Call Reports are completed on a fully consolidated basis. 

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

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

subsidiary institution reports are included in the Quarterly 

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

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

All asset and liability figures used in calculating performance 

ratios represent average amounts for the period (beginningof-period amount plus end-of-period amount plus any interim 

periods, divided by the total number of periods). For “poolingof-interest” mergers, the assets of the acquired institution(s) 

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

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

rates represent the percentage change over a 12-month 

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

institutions in the current period. 

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

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

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

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

ACCOUNTING CHANGES 

Adoption of GAAP Reporting — Effective with the March 

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

New reporting instructions for 1997 and 1998 changed the 

amounts reported for a number of items used in the 

Quarterly Banking Profile, so that comparability with prior 

periods may be affected. Among the items most significantly 

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

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

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

March 1997 and in March 1998 is contained in Financial 

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

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

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

Information on changes to the March 31, 1997 Thrift 

Financial Reports is available from the Office of Thrift 

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

telephone (202) 906-5900. 

Subchapter S Corporations — The Small Business Job 

Protection Act of 1996 changed the Internal Revenue Code 

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

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

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

federal income taxes at the corporate level. Its taxable 

income flows through to its shareholders in proportion to their 

stock ownership, and the shareholders generally pay federal 

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

FDIC Quarterly Banking Profile 

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

increasing their after-tax earnings. 

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

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

DEFINITIONS (in alphabetical order) 

All other assets — total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

estate, investment in unconsolidated subsidiaries, customers’ liability on acceptances outstanding, assets held in trading accounts, federal funds sold, securities purchased with 

agreements to resell, and other assets. Beginning 3/31/97, 

Federal funds sold are reported on a consolidated basis 

(domestic and foreign offices combined). Previously, Federal 

funds sold through foreign offices were reported as loans. 

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

sheet credit losses, and other liabilities. 

Assessment base distribution — each institution’s capital 

category is calculated or estimated from its financial report 

and does not reflect supervisory upgrades or downgrades: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) Capital * Capital * Leverage Equity 

Well-capitalized >10 and >6 and >5 — 

Adequately 

capitalized >8 and >4 and >4 — 

Undercapitalized >6 and >3 and >3 — 

Significantly 

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

Critically 

undercapitalized — — — <2 

*As a percentage of risk-weighted assets. 

For purpose of BIF and SAIF assessments, risk-based 

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

risk subgroup assignments are based on supervisory ratings. 

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

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

are in subgroup C. 

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

Construction and development loans — includes loans for 

all property types under construction, as well as loans for 

land acquisition and development. 

Core capital — common equity capital plus noncumulative 

perpetual preferred stock plus minority interest in consolidated subsidiaries, less goodwill and other ineligible intangible 

assets. The amount of eligible intangibles (including servicing rights) included in core capital is limited in accordance 

with supervisory capital regulations. 

Cost of funding earning assets — total interest expense 

paid on deposits and other borrowed money as a percentage 

of average earning assets. 

Derivative contracts, gross fair values (positive/negative) — are reported separately and represent the amount at 

which a contract could be exchanged in a transaction 

between willing parties, other than in a forced or liquidation 

sale. If a quoted market price is available for a contract, the 

fair value reported for that contract is calculated using this 

market price. If quoted market prices are not available, the 

reporting banks use the best estimate of fair value based on 

quoted market prices of similar contracts or on valuation techniques such as discounted cash flows. This information is 

reported only by banks with assets greater than $100 million. 

Direct and indirect investments in real estate — excludes 

loans secured by real estate and property acquired through 

foreclosure. 

Earning assets — all loans and other investments that earn 

interest or dividend income. 

Efficiency Ratio — Noninterest expense less amortization 

of intangible assets as a percent of net interest income plus 

noninterest income. This ratio measures the proportion of net 

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

Estimated insured deposits — estimated amount of 

insured deposits (account balances less than $100,000). 

The sum of all deposit balances in accounts of less than 

$100,000 plus the number of accounts with balances greater 

than $100,000 multiplied by $100,000. 

Failed/assisted institutions — an institution fails when regulators take control of the institution, placing the assets and 

liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the FDIC 

to provide funds to cover losses. An institution is defined as 

“assisted” when the institution remains open and receives 

some insurance funds in order to continue operating. 

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

furnished by the Federal Housing Finance Board (FHFB) for 

Call filers and reported by TFR filers. 

Goodwill and other intangibles — intangible assets 

include servicing rights, purchased credit card relationships 

and other identifiable intangible assets. 

Loans secured by real estate — includes home equity 

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

and all other loans secured by real estate. 

Loans to individuals — includes outstanding credit card 

balances and other secured and unsecured consumer loans. 

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

with remaining maturities or repricing intervals of over five years. 

Mortgage-backed securities — certificates of participation 

in pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored 

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

Net charge-offs — total loans and leases charged off 

(removed from balance sheet because of uncollectibility), 

less amounts recovered on loans and leases previously 

charged off. 

Net interest margin — the difference between interest and 

dividends earned on interest-bearing assets and interest 

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

made for interest income that is tax exempt. 

Net operating income — income excluding discretionary 

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

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

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

in nonaccrual status. 

FDIC Quarterly Banking Profile 

Notes to Users 22 Second Quarter 1999 
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 

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, 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 SAIFFDIC Quarterly Banking Profile 

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. 

Second Quarter 1999 23 Notes to Users