Quarterly Banking Profile
 

THIRD QUARTER 2003 

�	 Industry Ekes Out Another Quarterly Earnings Record 

�	 Lower Loss Provisions, Higher Noninterest Income Offset Sharp 

Drop in Gains on Sales of Securities and Other Assets 

�	 Net Interest Margin Falls to 12-Year Low 

�	 Domestic Deposits Register First Decline in Over Four Years 

Net Income Sets a Record for Third Consecutive Quarter 

Commercial banks and savings institutions insured by 

the FDIC reported record-high earnings in the third 

quarter of 2003, the third consecutive quarter that 

industry earnings have set a record. Net income totaled 

$30.4 billion, an increase of $147 million (0.5 percent) 

from the second quarter, and $3.1 billion (11.3 percent) 

more than the industry earned in the third quarter of 

2002. The average return on assets was 1.36 percent, 

compared to 1.38 percent in the second quarter, and 

1.34 percent a year earlier. More than half of all institutions (55.3 percent) reported an ROA of 1 percent or 

higher for the quarter. Slightly more than half reported 

increased net income compared to the second quarter 

(50.8 percent), and a similar proportion (50.7 percent) 

reported higher net income than in the third quarter of 

2002. 

Nonrecurring Gains are Sharply Lower Than in Second 

Quarter 

Noninterest income growth was a major source of earnings strength, and lower expenses for loan-loss provisions also helped lift profits. The improvement in 

earnings was held down by reduced gains on sales of 

securities and other assets, and by lower net interest 

income. Net operating income, which does not include 

gains from securities sales and other nonrecurring items, 

was $2.0 billion (7.4 percent) higher than in the second quarter, and was $4.5 billion (18.3 percent) more 

than in the third quarter of 2002. 

Consumer Business Lines Continue to Exhibit Strength 

As has been the case in recent quarters, earnings 

strength was most evident at institutions with concentrations of consumer-related assets. The average ROA 

at credit-card lenders rose to 4.18 percent, from 4.04 

percent in the second quarter. At other consumer 

lenders, the average ROA rose from 1.49 percent to 

1.68 percent. An exception was mortgage lenders, 

whose average ROA fell from 1.50 percent to 1.34 percent, mainly because of sharply lower gains on sales of 

securities and other assets. 

Servicing Income Rebounds With Rise in Interest Rates 

Rising interest rates caused a decline in the market 

values of fixed-rate securities in the third quarter, and 

reduced the gains realized on securities sales, which 

were $2.7 billion (55.8 percent) lower than in the 

Chart 1 

Strength in Operating Earnings Lifts Industry Profits 

to New Record 

$ Billions 

Securities and Other Gains/Losses, Net 

Net Operating Income 

29.4 30.2 30.4 30 27.2 27.3 

25.3 25.4 

22.2 22.4 21.8 22.7 22.4 22.0 20.8 

20 

20.6 20.4 19.8 20.1 

17.3 

10 

0 

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

1999 2000 2001 2002 2003 

FEDERAL DEPOSIT INSURANCE CORPORATION	 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

second quarter. The increase in rates also had a 

dampening effect on loan demand, especially for 

mortgage refinancings, and the reduced volume of 

lending activity contributed to a $390 million (0.6 

percent) decline in net interest income. However, 

the prospect of reduced refinancing activity had a 

positive effect on the value of mortgage servicing 

rights, and servicing income rose by $3.2 billion 

(281 percent) compared to the second quarter. The 

industry also registered a $1.0-billion (20.2-percent) 

rise in securitization income, and a $2.2-billion 

(57.0-percent) increase in gains on loan sales. 

These improvements helped lift total noninterest 

income by $2.1 billion (4.3 percent). The industry’s 

bottom line was also helped by lower expenses. 

Provisions for loan losses were $1.7 billion (17.1 

percent) lower than in the second quarter, and 

noninterest expenses were only $355 million (0.5 

percent) higher. 

Small Institutions Register Slight Improvement in 

Margins 

The increase in medium- and long-term interest 

rates affected the net interest margins of large and 

small institutions differently. More than half of all 

banks and thrifts with less than $100 million in 

assets—52.5 percent—reported improved net interest margins in the third quarter, whereas only about 

a third of institutions with more than $1 billion in 

assets—35.2 percent—reported margin improvement. Average asset yields declined more sharply at 

large institutions than at smaller ones. The reducChart 2 

Declining Loss Provisions, Rising Noninterest Income 

Boost Net Operating Revenue 

% of Net Operating Revenue 

80 

60 

40 

20 

0 

Noninterest Expense 

Noninterest Income 

Loss Provision 

57.7 

41.5 

7.9 

1995 1996 1997 1998 1999 2000 2001 2002 2003 

tions in net interest margins at larger institutions 

caused the industry’s margin to fall by 9 basis points, 

from 3.74 percent to 3.65 percent. This is the lowest level reported by the industry since the first 

quarter of 1991. 

C&I Loans Remain at Forefront of Asset Quality 

Improvement 

The improving trend in asset quality that began late 

last year continued through the third quarter, as 

both noncurrent loans and net charge-offs declined. 

Net charge-offs were $684 million (6.7 percent) 

lower than in the second quarter, and were $2.4 billion (20.3 percent) below the level of a year ago. 

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

loans fell by $423 million (13.4 percent) from the 

second quarter, accounting for 62 percent of the 

improvement in total net charge-offs. Compared to 

the third quarter of 2002, C&I charge-offs were 

down by $2.2 billion (44.2 percent), representing 

88.6 percent of the improvement in all net chargeoffs. Net charge-offs on credit-card loans declined 

by $363 million (9.0 percent) from the second quarter, and were $306 million (7.7 percent) lower than 

a year earlier. The only loan category that had a 

significant increase in charge-offs was loans to foreign governments, where net charge-offs rose by 

$133 million. 

Chart 3 

Large Banks Continue to Propel Industry 

Margin Downward 

Net Interest Margin (%) 

5.0 

Assets < $100 Million 

4.5 

4.0 

3.5 

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

1999 2000 2001 2002 2003 

4.11 

3.63 

Assets > $100 Million 

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

Noncurrent Rate Falls to Two-Year Low 

Noncurrent loans declined for the fourth quarter in 

a row, falling by $2.6 billion (4.0 percent). Compared to the level of a year ago, noncurrent loans 

are down by $6.7 billion (9.7 percent). Noncurrent 

C&I loans fell by $1.4 billion (5.7 percent) during 

the quarter, and have fallen by $5.3 billion (18.5 

percent) in the past 12 months. As with net 

charge-offs, improvements in C&I loans have 

accounted for the majority of the improvement in 

total noncurrent loans. At the end of September, 

the percent of total loans that were noncurrent 

stood at 1.17 percent, the lowest level since midyear 

2001. 

Coverage Ratio Improves Despite Decline in Loss 

Reserves 

Total loan-loss provisions fell short of total net 

charge-offs for the third quarter in a row, contributing to a $991-million (1.2-percent) decline in the 

industry’s loss reserves. The ratio of reserves to total 

loans declined from 1.64 percent to 1.59 percent 

during the quarter. This is the lowest level for this 

ratio in more than 2 years (it was 1.55 percent at 

the end of the second quarter of 2001). In contrast, 

the industry’s “coverage ratio” increased to $1.36 in 

reserves for every $1.00 of noncurrent loans, from 

$1.33 at midyear, thanks to the decline in noncurrent loans. 

Regulatory Capital Ratios Hit New Highs 

Total equity capital increased by only $5.0 billion 

(0.6 percent) during the quarter, the smallest 

quarterly increase since the third quarter of 1999. 

The main reason that equity growth slowed was 

depreciation in the market values of institutions’ 

available-for-sale securities, caused by rising interest 

rates. Under Generally Accepted Accounting 

Principles (GAAP), changes in the values of these 

securities are reflected in equity capital. At 

midyear, commercial banks’ available-for-sale 

securities contained about $26 billion in unrealized 

gains; at the end of the third quarter, this figure had 

declined to $14 billion. Even with the small 

increase in equity capital, the industry’s equity-toassets ratio registered a modest improvement, from 

9.10 percent to 9.13 percent. Because regulatory 

capital definitions do not include adjustments for 

unrealized gains in securities portfolios, two of the 

industry’s three regulatory capital ratios—tier 1 riskbased capital and total risk-based capital—rose to 

record-high levels during the quarter. 

Shrinkage in Mortgage-Backed Securities Limits 

Asset Growth 

Assets of insured banks and thrifts increased by only 

$22.2 billion (0.2 percent) in the third quarter, the 

smallest increase in the last 6 quarters. The industry’s portfolio of loans grew by $87 billion (1.7 percent), but securities holdings fell by $59.6 billion 

(3.4 percent). Residential mortgage loans increased 

by $40.6 billion (2.5 percent), and home equity 

loans grew by $19.5 billion (6.6 percent), but both 

Chart 4 Chart 5 

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 

0.0 

0.5 

1.0 

1.5 

Quarterly Net Charge-off (%) 

Assets > $1 Billion 

Assets < $1 Billion 

.80 

.36 

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

10 

20 

30 

$ Billions 

Quarterly Net Charge-offs 

Noncurrent Loans 

1998 1999 2000 2001 2002 

26.1 

2.7 

23.4 

2003 

8.7 

Improvement in Loan Loss Rates Is Troubled C&I Loans Continue to Improve

Concentrated Among Large Institutions 

ALL FDIC-INSURED INSTITUTIONS 3 THIRD QUARTER 2003 
 

FDIC Quarterly Banking Profile 

increases were below the levels of the previous quarter. Mortgage-backed securities declined by $86.2 

billion (8.3 percent). C&I loans declined for an 

eleventh consecutive quarter, but the $2.7-billion 

decline was the smallest quarterly drop during this 

period of shrinkage. 

Savings Deposits Continue to Grow 

Domestic deposits declined for the first time since 

the first quarter of 1999, falling by $7.7 billion (0.1 

percent). Most of the decrease occurred in demand 

deposits, which declined by $46.2 billion (7.5 percent). At banks filing Call Reports, savings deposits 

increased by $52.8 billion (2.3 percent). Deposits 

in foreign offices increased by $14.1 billion (2.1 percent), and nondeposit liabilities rose by $10.8 billion (0.5 percent). Most of the growth in 

nondeposit liabilities consisted of short-term borrowings. 

Chart 6 

Industry Contraction is Smallest in 17 Years 

The number of insured banks and thrifts filing quarterly financial reports declined by 31 in the third 

quarter. This is the smallest quarterly reduction in 

reporting institutions since 1986. There were no 

failures during the third quarter. Mergers absorbed 

57 institutions, and 31 new institutions were chartered during the quarter. Two mutual savings banks, 

with total assets of $494 million, converted to stock 

ownership. The number of institutions on the 

FDIC’s “Problem List” declined from 129 to 116 

during the quarter, and total assets of “problem” 

institutions fell from $32.2 billion to $30.3 billion. 

Chart 7 

1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 

-300 

-200 

-100 

100 

0 

Number of Institutions 

The Pace of Industry Consolidation 

Continues to Slow 

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 

$ Billions 

0 

100 

200 

Change in Domestic Loans 

Change in Domestic Deposits 

Domestic Deposits Register First 

Quarterly Decline Since 1999 

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

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

2003** 2002** 2002 2001 2000 1999 1998 

Return on assets (%) ...................................................... 1.37 1.34 1.30 1.14 1.14 1.25 1.16 

Return on equity (%) ....................................................... 15.00 14.60 14.14 12.97 13.53 14.71 13.50 

Core capital (leverage) ratio (%) ..................................... 7.87 8.01 7.87 7.78 7.71 7.80 7.59 

Noncurrent assets plus 

other real estate owned to assets (%) ......................... 0.77 0.92 0.90 0.88 0.71 0.63 0.66 

Net charge-offs to loans (%) ........................................... 0.77 0.97 0.97 0.83 0.59 0.53 0.59 

Asset growth rate (%) ..................................................... 8.13 5.44 7.20 5.44 8.41 5.40 8.05 

Net interest margin (%) ................................................... 3.72 4.00 3.96 3.78 3.77 3.89 3.91 

Net operating income growth (%) ................................... 10.37 21.37 18.52 -0.84 1.72 19.75 3.02 

Number of institutions reporting ..................................... 9,237 9,415 9,354 9,614 9,905 10,222 10,464 

Commercial banks ....................................................... 7,812 7,931 7,887 8,079 8,316 8,580 8,774 

Savings institutions ...................................................... 1,425 1,484 1,467 1,535 1,589 1,642 1,690 

Percentage of unprofitable institutions........................... 5.42 6.45 6.65 8.22 7.54 7.64 5.97 

Number of problem institutions ....................................... 116 146 136 114 94 79 84 

Assets of problem institutions (in billions) ....................... $30 $42 $39 $40 $24 $10 $11 

Number of failed/assisted institutions ............................. 2 9 11 4 7 8 3 

* Excludes insured branches of foreign banks (IBAs)
 

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

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

(dollar figures in millions) 

Number of institutions reporting ........................................................................... 9,237 

3rd Quarter 

2003 

9,268 9,415 

2nd Quarter 

2003 

3rd Quarter 

2002 

-1.9 

%Change 

02:3-03:3 

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

CONDITION DATA 

2,041,607 2,088,817 2,003,419 1.9 

Total assets .......................................................................................................... $8,945,735 $8,923,525 $8,272,909 8.1 

Loans secured by real estate ............................................................................ 3,124,930 3,038,924 2,744,470 13.9 

1-4 Family residential mortgages ................................................................... 1,653,989 1,613,371 1,445,421 14.4 

Commercial real estate .................................................................................. . 665,661 652,598 611,419 8.9 

Construction and development ...................................................................... . 263,687 257,067 243,651 8.2 

Home equity lines ........................................................................................... 314,880 295,363 240,180 31.1 

Commercial & industrial loans ........................................................................... 931,532 934,187 962,022 -3.2 

Loans to individuals ........................................................................................... 772,344 764,088 753,567 2.5 

Credit cards .................................................................................................... 266,643 269,883 281,829 -5.4 

Farm loans ........................................................................................................ 46,672 46,257 48,181 -3.1 

Other loans & leases ......................................................................................... 461,393 467,054 448,139 3.0 

Less: Unearned income .................................................................................... . 2,980 3,589 3,789 -21.4 

Total loans & leases .......................................................................................... 5,333,891 5,246,919 4,952,589 7.7 

Less: Reserve for losses ................................................................................... 84,931 85,922 83,858 1.3 

Net loans and leases ......................................................................................... 5,248,960 5,160,997 4,868,731 7.8 

Securities .......................................................................................................... 1,702,171 1,761,751 1,589,424 7.1 

Other real estate owned .................................................................................... 5,514 5,519 5,040 9.4 

Goodwill and other intangibles .......................................................................... 170,393 158,822 145,739 16.9 

All other assets .................................................................................................. 1,818,697 1,836,435 1,663,976 9.3 

Total liabilities and capital .................................................................................... 8,945,735 8,923,525 8,272,909 8.1 

Deposits ............................................................................................................ 5,851,069 5,844,704 5,391,969 8.5 

Domestic office deposits ................................................................................ . 5,158,888 5,166,616 4,778,981 7.9 

Foreign office deposits ................................................................................... 692,181 678,088 612,988 12.9 

Other borrowed funds ....................................................................................... . 1,690,761 1,671,935 1,576,969 7.2 

Subordinated debt ............................................................................................. 103,666 102,826 95,992 8.0 

All other liabilities .............................................................................................. . 483,630 492,456 444,819 8.7 

Equity capital ..................................................................................................... 816,608 811,604 763,160 7.0 

Loans and leases 30-89 days past due ................................................................ 50,106 52,098 55,055 -9.0 

Noncurrent loans and leases ................................................................................ 62,227 64,811 68,900 -9.7 

Restructured loans and leases ............................................................................. 3,333 3,286 3,364 -0.9 

Direct and indirect investments in real estate ....................................................... 727 694 696 4.5 

Mortgage-backed securities ................................................................................. 948,242 1,034,398 901,709 5.2 

Earning assets ...................................................................................................... 7,700,560 7,682,627 7,152,756 7.7 

FHLB Advances ................................................................................................... 464,511 454,136 452,528 2.6 

Unused loan commitments ................................................................................... 5,891,861 5,903,541 5,582,066 5.5 

Trust assets .......................................................................................................... 11,792,873 11,891,679 10,534,152 11.9 

Assets securitized and sold*** .............................................................................. 896,072 878,692 904,270 -0.9 

Notional amount of derivatives*** ......................................................................... 67,789,253 66,477,267 53,714,908 26.2 

INCOME DATA 

First Three 

Qtrs 2003 

First Three 

Qtrs 2002 

3rd Quarter 

%Change 2002

3rd Quarter 

2003 

%Change 

02:3-03:3 

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

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

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

Provision for loan and lease losses .......................................................... 

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

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

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

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

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

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

From international operations ............................................................. 

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

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

Retained earnings .................................................................................... . 

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

$304,424 $325,970 

94,303 118,352 

210,121 207,618 

28,474 37,777 

149,291 136,511 

207,388 194,116 

10,690 8,003 

44,464 40,056 

19 -2 

89,794 80,180 

6,263 4,500 

30,101 34,865 

62,499 55,363 

27,295 24,817 

82,556 74,800 

-6.6 $99,758 $109,174 

-20.3 29,572 39,299 

1.2 70,187 69,874 

-24.6 8,268 13,527 

9.4 51,869 46,204 

6.8 70,516 65,904 

33.6 2,153 4,342 

11.0 15,065 13,644 

N/M 17 -41 

12.0 30,376 27,305 

39.2 1,737 842 

-13.7 9,565 12,004 

12.9 20,447 18,034 

10.0 9,929 9,270 

10.4 28,905 24,432 

-8.6 

-24.8 

0.5 

-38.9 

12.3 

7.0 

-50.4 

10.4 

N/M 

11.3 

106.3 

-20.3 

13.4 

7.1 

18.3 

*** Commercial banks only. N/M - Not Meaningful 

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

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

THIRD QUARTER 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

International 

Banks 

Agricultural 

Banks 

Credit Card 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

9,237 7 1,821 35 4,166 1,024 166 523 1,392 103 

Commercial banks .............................................. 7,812 7 1,816 33 3,812 239 127 445 1,249 84 

Savings institutions ............................................. 1,425 0 5 2 354 785 39 78 143 19 

Total assets (in billions) ......................................... $8,945.7 $1,483.9 $129.5 $252.8 $3,095.7 $1,588.7 $191.9 $62.2 $192.2 $1,948.9 

Commercial banks .............................................. 7,474.3 1,483.9 128.9 248.7 2,811.4 568.0 144.0 46.3 160.7 1,882.3 

Savings institutions ............................................. 1,471.4 0.0 0.6 4.1 284.3 1,020.7 47.9 15.9 31.5 66.5 

Total deposits (in billions) ...................................... 5,851.1 853.0 106.6 79.2 2,242.5 965.9 106.1 46.5 157.3 1,293.9 

Commercial banks .............................................. 4,916.6 853.0 106.1 76.9 2,051.8 338.5 75.8 34.3 132.1 1,248.0 

Savings institutions ............................................. 934.5 0.0 0.4 2.3 190.7 627.4 30.3 12.2 25.2 46.0 

Net income (in millions) ......................................... 30,376 4,163 405 2,566 9,965 5,216 816 232 499 6,514 

Commercial banks .............................................. 25,813 4,163 404 2,538 9,062 2,058 579 174 443 6,393 

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

Performance Ratios (annualized, %) 

4,563 0 1 28 903 3,158 237 58 56 121 

Yield on earning assets ......................................... 5.19 4.45 5.91 10.64 5.41 5.11 6.22 4.50 5.56 4.50 

Cost of funding earning assets .............................. 1.54 1.57 1.83 1.97 1.49 1.78 1.50 1.49 1.73 1.29 

Net interest margin ............................................. 3.65 2.87 4.08 8.68 3.92 3.32 4.71 3.01 3.83 3.21 

Noninterest income to assets ................................ 2.32 3.00 0.71 12.06 1.67 1.52 2.49 8.20 1.01 2.28 

Noninterest expense to assets .............................. 3.16 3.22 2.70 9.34 2.98 2.66 3.36 8.55 3.01 2.86 

Loan and lease loss provision to assets ................ 0.37 0.39 0.24 3.80 0.35 0.12 0.93 0.24 0.23 0.13 

Net operating income to assets ............................. 1.29 1.06 1.24 4.18 1.27 1.09 1.61 1.43 0.98 1.31 

Pretax return on assets ......................................... 2.03 1.69 1.55 6.55 1.87 2.08 2.64 2.19 1.36 1.98 

Return on assets ................................................... 1.36 1.11 1.26 4.18 1.29 1.34 1.68 1.49 1.04 1.33 

Return on equity .................................................... 14.92 14.75 11.59 24.66 13.69 14.91 22.86 9.32 9.87 15.31 

Net charge-offs to loans and leases ...................... 0.72 1.52 0.29 4.83 0.47 0.19 1.34 2.47 0.37 0.48 

Loan and lease loss provision to net charge-offs .. 86.44 63.14 129.93 98.50 110.60 95.05 87.34 34.88 112.90 55.11 

Efficiency ratio ....................................................... 56.77 60.45 60.19 45.57 56.63 58.81 49.05 77.61 66.10 56.68 

% of unprofitable institutions ................................. 6.55 0.00 4.12 2.86 6.91 6.74 6.02 14.91 5.46 7.77 

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

Structural Changes 

50.67 85.71 44.26 60.00 60.83 40.63 54.22 33.08 42.10 46.60 

New Charters ..................................................... 31 0 0 0 6 1 0 23 1 0 

Institutions absorbed by mergers ....................... 57 1 5 0 36 6 2 0 4 6 

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

PRIOR THIRD QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 

Return on assets (%) .............................. 2002 1.34 0.65 1.38 3.76 1.31 1.37 1.18 1.60 1.22 1.51 

.............................................. 2000 1.21 1.03 1.29 3.59 1.17 0.87 1.16 1.03 1.16 1.32 

.............................................. 1998 1.15 0.24 1.26 3.20 1.37 1.20 1.44 1.94 1.17 1.44 

Net charge-offs to loans & leases (%) ....... 2002 0.98 2.17 0.30 5.35 0.68 0.15 1.29 0.42 0.34 0.86 

.............................................. 2000 0.53 0.37 0.21 3.69 0.43 0.11 0.26 1.50 0.25 0.65 

.............................................. 1998 0.63 0.87 0.24 4.50 0.33 0.21 0.64 0.23 0.36 0.49 

* See page 8 for explanations. 

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

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

THIRD QUARTER 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

9,237 4,465 4,190 470 112 1,188 1,231 2,028 2,141 1,878 771 

Commercial banks .............................................. 7,812 3,985 3,404 339 84 621 1,075 1,663 2,029 1,741 683 

Savings institutions ............................................. 1,425 480 786 131 28 567 156 365 112 137 88 

Total assets (in billions) ......................................... $8,945.7 $229.1 $1,159.9 $1,299.7 $6,257.2 $3,041.5 $1,858.6 $1,653.7 $445.3 $592.6 $1,353.9 

Commercial banks .............................................. 7,474.3 204.1 907.8 946.5 5,415.9 2,521.5 1,730.4 1,515.1 400.4 501.0 806.1 

Savings institutions ............................................. 1,471.4 24.9 252.0 353.2 841.3 520.0 128.3 138.7 45.0 91.7 547.9 

Total deposits (in billions) ...................................... 5,851.1 191.4 930.9 867.7 3,861.0 1,912.0 1,241.9 1,092.7 300.6 451.2 852.7 

Commercial banks .............................................. 4,916.6 171.7 737.8 636.5 3,370.6 1,563.9 1,151.1 990.8 272.1 397.1 541.5 

Savings institutions ............................................. 934.5 19.8 193.1 231.2 490.4 348.1 90.8 101.9 28.5 54.1 311.2 

Net income (in millions) ......................................... 30,376 582 3,374 4,417 22,003 9,289 6,497 5,153 1,960 1,986 5,492 

Commercial banks .............................................. 25,813 518 2,835 3,338 19,121 7,846 6,179 4,806 1,867 1,579 3,536 

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

Performance Ratios (annualized, %) 

4,563 64 538 1,079 2,882 1,443 318 348 92 407 1,956 

Yield on earning assets ......................................... 5.19 5.85 5.72 5.29 5.03 4.89 5.11 5.16 6.10 5.45 5.56 

Cost of funding earning assets .............................. 1.54 1.74 1.75 1.60 1.48 1.62 1.50 1.60 1.58 1.45 1.36 

Net interest margin ............................................. 3.65 4.11 3.97 3.70 3.56 3.26 3.61 3.57 4.52 4.00 4.20 

Noninterest income to assets ................................ 2.32 1.33 1.50 1.93 2.59 2.57 2.30 1.93 2.78 2.10 2.22 

Noninterest expense to assets .............................. 3.16 3.56 3.31 3.08 3.13 3.14 3.18 2.88 3.85 3.68 3.06 

Loan and lease loss provision to assets ................ 0.37 0.26 0.28 0.32 0.40 0.40 0.22 0.43 0.50 0.26 0.44 

Net operating income to assets ............................. 1.29 0.97 1.11 1.25 1.35 1.16 1.32 1.21 1.73 1.27 1.54 

Pretax return on assets ......................................... 2.03 1.33 1.63 2.04 2.13 1.84 2.08 1.79 2.56 1.83 2.63 

Return on assets ................................................... 1.36 1.02 1.17 1.37 1.41 1.22 1.40 1.24 1.77 1.34 1.66 

Return on equity .................................................... 14.92 8.90 11.68 13.13 16.36 13.74 15.85 14.36 16.45 13.93 16.69 

Net charge-offs to loans and leases ...................... 0.72 0.30 0.37 0.48 0.86 1.09 0.50 0.64 0.85 0.38 0.60 

Loan and lease loss provision to net charge-offs .. 86.44 140.96 117.64 110.11 80.10 75.88 72.40 104.21 85.96 113.13 102.83 

Efficiency ratio ....................................................... 56.77 69.63 63.97 56.87 55.10 58.05 58.36 56.30 54.75 63.05 50.69 

% of unprofitable institutions ................................. 6.55 10.08 3.27 3.40 1.79 7.66 9.34 5.87 4.20 6.39 9.08 

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

Structural Changes 

50.67 46.36 54.15 58.09 60.71 50.93 55.89 49.75 47.13 47.50 61.87 

New Charters ..................................................... 31 30 0 1 0 3 9 2 5 5 7 

Institutions absorbed by mergers ....................... 57 25 29 2 1 11 6 8 11 11 10 

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

PRIOR THIRD QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%) ............................. 2002 1.34 1.11 1.23 1.54 1.33 1.10 1.38 1.30 1.64 1.44 1.75 

.............................................. 2000 1.21 1.00 1.15 1.35 1.20 1.28 1.28 1.00 1.31 1.08 1.21 

.............................................. 1998 1.15 1.21 1.22 1.52 1.00 0.93 1.48 1.33 1.44 1.28 0.95 

Net charge-offs to loans & leases (%) ...... 2002 0.98 0.31 0.36 0.76 1.21 1.51 0.73 0.80 1.15 0.42 0.77 

.............................................. 2000 0.53 0.21 0.29 0.54 0.60 0.63 0.46 0.38 0.67 0.34 0.67 

.............................................. 1998 0.63 0.23 0.30 0.91 0.64 0.85 0.45 0.35 0.69 0.37 0.79 

* See page 9 for explanations. 

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

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

FIRST THREE QUARTERS 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

International 

Banks 

Agricultural 

Banks 

Credit Card 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

9,237 7 1,821 35 4,166 1,024 166 523 1,392 103 

Commercial banks .............................................. 7,812 7 1,816 33 3,812 239 127 445 1,249 84 

Savings institutions ............................................. 1,425 0 5 2 354 785 39 78 143 19 

Total assets (in billions) ......................................... $8,945.7 $1,483.9 $129.5 $252.8 $3,095.7 $1,588.7 $191.9 $62.2 $192.2 $1,948.9 

Commercial banks .............................................. 7,474.3 1,483.9 128.9 248.7 2,811.4 568.0 144.0 46.3 160.7 1,882.3 

Savings institutions ............................................. 1,471.4 0.0 0.6 4.1 284.3 1,020.7 47.9 15.9 31.5 66.5 

Total deposits (in billions) ...................................... 5,851.1 853.0 106.6 79.2 2,242.5 965.9 106.1 46.5 157.3 1,293.9 

Commercial banks .............................................. 4,916.6 853.0 106.1 76.9 2,051.8 338.5 75.8 34.3 132.1 1,248.0 

Savings institutions ............................................. 934.5 0.0 0.4 2.3 190.7 627.4 30.3 12.2 25.2 46.0 

Net income (in millions) ......................................... 89,794 12,522 1,201 7,112 29,713 16,148 2,166 631 1,539 18,761 

Commercial banks .............................................. 76,113 12,522 1,198 7,048 26,951 6,695 1,617 474 1,354 18,255 

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

Performance Ratios (annualized, %) 

13,681 0 4 65 2,763 9,452 549 157 185 505 

Yield on earning assets ......................................... 5.39 4.81 6.01 10.71 5.59 5.30 6.42 4.67 5.72 4.69 

Cost of funding earning assets .............................. 1.67 1.75 1.96 2.16 1.63 1.90 1.66 1.60 1.87 1.39 

Net interest margin ............................................. 3.72 3.06 4.04 8.55 3.97 3.40 4.76 3.07 3.85 3.30 

Noninterest income to assets ................................ 2.28 3.14 0.70 11.84 1.62 1.46 2.26 7.99 1.00 2.19 

Noninterest expense to assets .............................. 3.17 3.44 2.68 9.27 2.98 2.55 3.33 8.41 2.97 2.87 

Loan and lease loss provision to assets ................ 0.44 0.55 0.22 3.87 0.38 0.15 0.96 0.32 0.23 0.22 

Net operating income to assets ............................. 1.26 1.03 1.22 3.93 1.24 1.13 1.50 1.29 1.01 1.24 

Pretax return on assets .......................................... 2.05 1.73 1.55 6.16 1.91 2.23 2.39 2.11 1.44 1.94 

Return on assets ................................................... 1.37 1.14 1.25 3.93 1.31 1.43 1.54 1.36 1.09 1.31 

Return on equity .................................................... 15.00 15.12 11.60 23.98 13.91 15.73 20.71 8.47 10.32 14.77 

Net charge-offs to loans and leases ...................... 0.77 1.53 0.24 5.17 0.52 0.19 1.42 1.44 0.31 0.56 

Loan and lease loss provision to net charge-offs .. 94.60 87.31 152.12 94.00 107.12 113.47 85.98 79.11 128.50 77.19 

Efficiency ratio ....................................................... 56.59 60.82 60.50 46.16 56.37 56.31 50.13 77.34 65.24 57.01 

% of unprofitable institutions .................................. 5.42 0.00 2.75 2.86 6.27 5.27 3.61 13.58 3.88 3.88 

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

Condition Ratios (%) 

57.63 57.14 46.84 60.00 68.92 52.34 61.45 36.14 49.93 50.49 

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

Loss Allowance to: 

86.08 77.85 91.76 88.26 89.63 88.91 91.90 89.82 91.76 82.49 

Loans and leases ................................................ 1.59 2.30 1.54 4.51 1.55 0.73 1.62 1.81 1.37 1.62 

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

Noncurrent assets plus 

136.49 99.37 115.98 272.04 152.57 88.68 163.93 171.68 124.55 148.34 

other real estate owned to assets ......................... 0.77 0.99 0.95 1.41 0.79 0.64 0.88 0.36 0.74 0.61 

Equity capital ratio ................................................. 9.13 7.67 10.81 16.84 9.42 8.80 7.49 15.93 10.56 8.73 

Core capital (leverage) ratio .................................. 7.87 6.79 10.22 16.85 8.18 7.15 7.21 14.24 9.94 7.15 

Tier 1 risk-based capital ratio ................................. 10.66 9.50 14.75 14.84 10.10 11.82 10.18 32.37 16.61 9.79 

Total risk-based capital ratio .................................. 13.22 12.84 15.90 17.42 12.33 14.05 12.98 33.56 17.84 12.76 

Net loans and leases to deposits ........................... 89.71 68.98 74.92 246.08 91.57 111.13 142.04 35.48 67.75 76.14 

Net loans to total assets ........................................ 58.68 39.66 61.67 77.08 66.33 67.57 78.54 26.53 55.45 50.55 

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

Structural Changes 

57.67 27.00 82.31 26.30 70.14 58.66 52.45 73.98 81.67 60.45 

New Charters ...................................................... 81 0 1 0 18 3 0 58 1 0 

Institutions absorbed by mergers ........................ 187 1 18 0 116 22 4 2 10 14 

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

PRIOR FIRST THREE QUARTERS 

(The way it was...) 

2 0 1 0 1 0 0 0 0 0 

Number of institutions .............................. 2002 9,415 5 1,877 41 4,081 1,159 206 453 1,495 98 

.............................................. 2000 9,989 7 2,045 58 3,947 1,309 304 507 1,731 81 

.............................................. 1998 10,624 11 2,371 68 3,416 1,502 312 608 2,246 90 

Total assets (in billions) ........................... 2002 $8,272.9 $1,232.2 $124.7 $291.0 $3,394.2 $1,279.6 $168.3 $49.0 $192.5 $1,541.3 

.............................................. 2000 7,269.5 1,165.0 120.9 277.5 3,781.1 1,000.0 78.3 50.6 208.1 587.9 

.............................................. 1998 6,327.5 1,450.8 125.2 242.1 2,602.8 1,004.8 94.5 60.4 274.9 471.9 

Return on assets (%) ............................... 2002 1.34 0.85 1.31 3.55 1.30 1.34 1.40 1.39 1.19 1.40 

.............................................. 2000 1.16 1.10 1.31 2.92 1.12 0.99 1.19 1.56 1.17 0.92 

.............................................. 1998 1.20 0.66 1.28 2.74 1.30 1.14 1.38 1.73 1.21 1.47 

Net charge-offs to loans & leases (%) ....... 2002 0.97 1.78 0.26 6.07 0.67 0.16 1.12 0.47 0.30 0.86 

.............................................. 2000 0.51 0.44 0.18 3.68 0.40 0.12 0.20 1.98 0.23 0.55 

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

Noncurrent assets plus 

0.58 0.60 0.20 4.41 0.33 0.18 0.65 0.50 0.33 0.55 

OREO to assets (%) ............................. 2002 0.92 1.28 0.93 1.61 0.88 0.68 1.34 0.36 0.70 0.80 

.............................................. 2000 0.67 0.66 0.76 1.51 0.70 0.48 0.95 0.30 0.56 0.45 

.............................................. 1998 0.67 0.61 0.81 1.62 0.62 0.65 0.99 0.35 0.63 0.59 

Equity capital ratio (%) ............................. 2002 9.22 7.26 11.04 15.39 9.53 8.82 7.78 16.73 10.90 8.87 

.............................................. 2000 8.55 6.92 10.48 12.60 8.62 8.12 7.99 15.78 10.14 8.61 

.............................................. 1998 8.73 6.49 11.02 14.14 9.13 8.72 8.98 14.06 10.42 8.39 

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

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

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

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

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

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

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

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

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

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

activity with no identified asset concentrations. 

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

activity with no identified asset concentrations. 

THIRD QUARTER 2003 8 ALL FDIC-INSURED INSTITUTIONS 
 

 

 

 

FDIC Quarterly Banking Profile 

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

FIRST THREE QUARTERS 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than $100 

Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

9,237 4,465 4,190 470 112 1,188 1,231 2,028 2,141 1,878 771 

Commercial banks .............................................. 7,812 3,985 3,404 339 84 621 1,075 1,663 2,029 1,741 683 

Savings institutions ............................................. 1,425 480 786 131 28 567 156 365 112 137 88 

Total assets (in billions) ......................................... $8,945.7 $229.1 $1,159.9 $1,299.7 $6,257.2 $3,041.5 $1,858.6 $1,653.7 $445.3 $592.6 $1,353.9 

Commercial banks .............................................. 7,474.3 204.1 907.8 946.5 5,415.9 2,521.5 1,730.4 1,515.1 400.4 501.0 806.1 

Savings institutions ............................................. 1,471.4 24.9 252.0 353.2 841.3 520.0 128.3 138.7 45.0 91.7 547.9 

Total deposits (in billions) ...................................... 5,851.1 191.4 930.9 867.7 3,861.0 1,912.0 1,241.9 1,092.7 300.6 451.2 852.7 

Commercial banks .............................................. 4,916.6 171.7 737.8 636.5 3,370.6 1,563.9 1,151.1 990.8 272.1 397.1 541.5 

Savings institutions ............................................. 934.5 19.8 193.1 231.2 490.4 348.1 90.8 101.9 28.5 54.1 311.2 

Net income (in millions) ......................................... 89,794 1,641 10,125 12,896 65,132 27,742 18,601 16,141 5,362 6,084 15,864 

Commercial banks .............................................. 76,113 1,444 8,487 9,589 56,593 23,321 17,604 15,003 5,076 4,880 10,229 

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

Performance Ratios (annualized, %) 

13,681 196 1,638 3,307 8,539 4,420 997 1,138 286 1,205 5,635 

Yield on earning assets ......................................... 5.39 5.95 5.87 5.46 5.26 5.18 5.34 5.29 6.26 5.61 5.68 

Cost of funding earning assets .............................. 1.67 1.87 1.88 1.72 1.61 1.79 1.63 1.71 1.71 1.56 1.46 

Net interest margin ............................................. 3.72 4.09 3.99 3.74 3.65 3.39 3.71 3.58 4.56 4.05 4.21 

Noninterest income to assets ................................ 2.28 1.34 1.46 1.84 2.56 2.63 2.17 1.92 2.66 1.99 2.11 

Noninterest expense to assets .............................. 3.17 3.62 3.29 3.07 3.16 3.25 3.15 2.86 3.86 3.62 3.00 

Loan and lease loss provision to assets ................ 0.44 0.24 0.27 0.34 0.49 0.50 0.28 0.46 0.68 0.27 0.47 

Net operating income to assets ............................. 1.26 0.91 1.12 1.22 1.31 1.15 1.28 1.19 1.56 1.28 1.50 

Pretax return on assets .......................................... 2.05 1.30 1.67 2.02 2.16 1.89 2.04 1.92 2.33 1.88 2.61 

Return on assets .................................................... 1.37 0.98 1.20 1.36 1.42 1.24 1.38 1.31 1.62 1.39 1.65 

Return on equity .................................................... 15.00 8.45 11.95 13.20 16.41 14.03 15.30 15.25 15.25 14.45 16.45 

Net charge-offs to loans and leases ...................... 0.77 0.26 0.32 0.52 0.94 1.16 0.56 0.65 0.97 0.38 0.64 

Loan and lease loss provision to net charge-offs .. 94.60 153.55 131.38 107.85 89.80 87.37 80.67 109.54 102.18 115.46 103.96 

Efficiency ratio ....................................................... 56.59 70.97 63.59 57.46 54.76 58.03 58.23 54.96 55.49 63.33 50.62 

% of unprofitable institutions .................................. 5.42 9.09 2.00 2.13 0.89 5.98 8.61 4.59 3.22 5.17 8.43 

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

Condition Ratios (%) 

57.63 52.00 62.65 64.68 64.29 60.10 64.01 59.42 52.45 50.75 70.04 

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

Loss Allowance to: 

86.08 91.59 91.86 90.69 83.85 83.64 84.37 88.31 90.51 89.82 88.10 

Loans and leases ................................................ 1.59 1.42 1.37 1.47 1.67 1.94 1.42 1.64 1.77 1.38 1.23 

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

Noncurrent assets plus 

136.49 116.76 147.13 159.01 132.02 122.18 160.25 125.16 189.77 133.42 152.15 

other real estate owned to assets .......................... 0.77 0.91 0.73 0.65 0.80 0.84 0.60 0.96 0.74 0.78 0.64 

Equity capital ratio ................................................. 9.13 11.44 10.03 10.49 8.59 8.96 8.83 8.65 10.79 9.64 9.74 

Core capital (leverage) ratio .................................. 7.87 11.09 9.47 9.19 7.17 7.71 7.47 7.73 9.94 8.53 7.95 

Tier 1 risk-based capital ratio ................................. 10.66 17.02 13.80 13.48 9.40 10.74 9.53 9.80 14.04 12.80 11.36 

Total risk-based capital ratio .................................. 13.22 18.13 15.03 15.16 12.40 13.47 12.15 12.72 15.44 14.34 13.76 

Net loans and leases to deposits ........................... 89.71 72.12 79.11 90.34 93.00 76.75 90.00 97.22 100.66 78.20 110.95 

Net loans to total assets ........................................ 58.68 60.28 63.49 60.31 57.38 48.25 60.13 64.23 67.94 59.54 69.88 

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

Structural Changes 

57.67 83.57 80.14 66.06 50.81 46.43 62.54 61.20 66.27 75.86 61.13 

New Charters ...................................................... 81 77 3 1 0 7 26 5 9 12 22 

Institutions absorbed by mergers ........................ 187 86 89 9 3 32 26 38 35 29 27 

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

PRIOR FIRST THREE QUARTERS 

(The way it was...) 

2 1 1 0 0 0 0 1 0 0 1 

Number of institutions .............................. 2002 9,415 4,809 4,059 441 106 1,222 1,249 2,067 2,180 1,910 787 

.............................................. 2000 9,989 5,558 3,902 428 101 1,304 1,320 2,221 2,277 2,035 832 

.............................................. 1998 10,624 6,305 3,791 447 81 1,363 1,358 2,389 2,422 2,226 866 

Total assets (in billions) ........................... 2002 $8,272.9 $243.9 $1,113.3 $1,256.3 $5,659.5 $2,826.3 $1,667.5 $1,561.4 $429.8 $569.2 $1,218.7 

.............................................. 2000 7,269.5 264.6 1,019.3 1,215.6 4,770.1 2,489.3 1,565.9 1,227.6 450.5 549.2 986.9 

.............................................. 1998 6,327.5 295.2 978.9 1,295.6 3,757.8 2,274.0 1,083.7 1,007.1 397.9 535.5 1,029.4 

Return on assets (%) ............................... 2002 1.34 1.05 1.18 1.45 1.36 1.17 1.36 1.33 1.59 1.43 1.60 

.............................................. 2000 1.16 1.06 1.18 1.26 1.14 1.24 1.01 1.04 1.36 1.10 1.28 

.............................................. 1998 1.20 1.19 1.25 1.47 1.09 1.07 1.27 1.27 1.44 1.26 1.21 

Net charge-offs to loans & leases (%) ....... 2002 0.97 0.28 0.33 0.74 1.19 1.48 0.69 0.77 1.19 0.40 0.79 

.............................................. 2000 0.51 0.22 0.27 0.53 0.58 0.63 0.42 0.34 0.73 0.32 0.64 

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

Noncurrent assets plus 

0.58 0.22 0.28 0.87 0.58 0.79 0.42 0.36 0.66 0.37 0.65 

OREO to assets (%) ............................ 2002 0.92 0.87 0.75 0.73 1.00 1.05 0.79 1.04 0.87 0.84 0.72 

.............................................. 2000 0.67 0.69 0.59 0.64 0.70 0.70 0.69 0.67 0.60 0.66 0.59 

.............................................. 1998 0.67 0.77 0.67 0.77 0.62 0.76 0.55 0.60 0.64 0.63 0.68 

Equity capital ratio (%) ............................ 2002 9.22 11.42 10.05 10.08 8.78 8.92 9.42 8.62 10.32 9.76 9.79 

.............................................. 2000 8.55 11.34 9.70 8.90 8.06 8.46 8.44 8.18 9.46 8.78 8.84 

.............................................. 1998 8.73 11.32 10.04 9.70 7.86 8.03 9.42 8.93 9.19 9.17 8.98 

* Regions: 

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

Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

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

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

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

September 30, 2003 

Percent of Loans 30-89 Days Past Due 

All Insured 

Institutions 

Asset Concentration Groups* 

International 

Banks 

Agricultural 

Banks 

Credit Card 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

All loans secured by real estate ...................................... 0.85 1.23 1.11 0.81 0.72 0.91 0.86 1.20 1.30 0.87 

Construction and development .................................... 0.79 2.00 1.22 0.69 0.74 1.13 1.09 1.36 1.48 0.60 

Commercial real estate ................................................ 0.57 0.75 1.16 0.10 0.57 0.47 0.65 0.86 1.05 0.44 

Multifamily residential real estate ................................. 0.32 0.15 0.70 0.29 0.34 0.22 2.52 0.39 0.90 0.36 

Home equity loans ....................................................... 0.41 0.51 0.54 0.52 0.40 0.25 0.21 0.27 0.65 0.67 

Other 1-4 family residential .......................................... 1.09 1.36 1.66 2.43 1.03 1.06 1.02 1.48 1.48 1.08 

Commercial and industrial loans ..................................... 0.75 0.51 1.71 1.52 0.90 0.58 1.12 1.68 1.53 0.51 

Loans to individuals ......................................................... 1.85 2.02 2.26 2.38 1.54 1.09 1.99 2.29 2.16 1.55 

Credit card loans .......................................................... 2.33 2.26 2.27 2.44 2.20 1.39 2.08 3.20 2.51 1.98 

Other loans to individuals ............................................. 1.60 1.89 2.25 1.16 1.46 1.07 1.97 2.13 2.15 1.49 

All other loans and leases (including farm) ..................... 0.46 0.41 0.63 0.00 0.73 0.81 0.52 0.37 1.13 0.23 

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

Percent of Loans Noncurrent** 

0.94 1.06 1.17 2.03 0.84 0.90 1.28 1.37 1.44 0.77 

All real estate loans ......................................................... 0.81 1.23 1.17 0.46 0.78 0.81 0.89 0.92 1.03 0.72 

Construction and development .................................... 0.87 2.59 1.35 0.02 0.75 1.09 1.60 1.56 1.77 1.09 

Commercial real estate ................................................ 0.96 2.27 1.38 0.15 0.86 1.00 1.83 0.93 1.32 1.17 

Multifamily residential real estate ................................. 0.31 0.73 1.21 0.00 0.32 0.22 0.17 0.41 0.79 0.39 

Home equity loans ....................................................... 0.23 0.14 0.25 0.19 0.24 0.14 0.21 0.10 0.25 0.38 

Other 1-4 family residential .......................................... 0.83 0.95 0.99 1.96 0.87 0.89 0.92 0.94 0.87 0.58 

Commercial and industrial loans ..................................... 2.51 4.79 2.19 1.30 1.86 1.48 2.25 1.77 1.86 2.62 

Loans to individuals ......................................................... 1.29 2.34 0.88 1.96 0.62 0.34 0.78 1.18 0.84 0.68 

Credit card loans .......................................................... 1.93 1.95 1.76 2.02 1.57 1.04 1.75 3.22 2.06 1.67 

Other loans to individuals ............................................. 0.95 2.56 0.86 0.51 0.51 0.28 0.59 0.82 0.78 0.53 

All other loans and leases (including farm) ..................... 0.71 0.60 1.33 0.00 1.08 0.67 1.33 0.88 1.09 0.46 

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

Percent of Loans Charged-off (net, YTD) 

1.17 2.31 1.33 1.66 1.01 0.82 0.99 1.05 1.10 1.09 

All real estate loans ......................................................... 0.11 0.14 0.07 0.17 0.12 0.06 0.29 0.05 0.08 0.14 

Construction and development .................................... 0.12 0.55 0.19 -0.25 0.09 0.15 0.07 0.15 0.26 0.22 

Commercial real estate ................................................ 0.12 -0.03 0.11 -0.02 0.13 0.21 0.03 0.00 0.10 0.08 

Multifamily residential real estate ................................. 0.02 0.19 0.11 0.11 0.02 0.01 0.91 0.00 0.03 0.00 

Home equity loans ....................................................... 0.16 0.04 0.08 0.13 0.14 0.07 0.48 -0.04 0.05 0.27 

Other 1-4 family residential .......................................... 0.09 0.04 0.07 0.45 0.14 0.04 0.29 0.07 0.06 0.13 

Commercial and industrial loans ..................................... 1.30 1.68 0.62 5.49 1.24 0.96 2.51 0.64 0.68 1.08 

Loans to individuals ......................................................... 2.94 3.34 0.72 5.76 1.45 1.46 2.79 8.08 1.02 1.69 

Credit card loans .......................................................... 5.71 4.67 3.77 5.91 5.02 2.92 8.44 25.31 5.10 7.37 

Other loans to individuals ............................................. 1.41 2.50 0.63 2.43 1.01 1.34 1.59 0.82 0.82 0.93 

All other loans and leases (including farm) ..................... 0.44 0.43 0.00 0.00 0.60 0.65 0.49 0.29 0.58 0.34 

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

Loans Outstanding (in billions) 

0.80 1.50 0.20 5.20 0.50 0.20 1.40 1.40 0.30 0.60 

All real estate loans ......................................................... $3,124.9 $127.4 $41.6 $11.9 $1,317.5 $946.7 $74.5 $11.5 $74.9 $518.8 

Construction and development .................................... 263.7 1.6 2.1 0.2 191.6 26.8 1.9 0.8 4.2 34.5 

Commercial real estate ................................................ 665.7 7.3 9.9 0.3 463.3 63.3 6.9 3.1 17.4 94.1 

Multifamily residential real estate ................................. 147.6 1.4 0.7 0.1 84.3 43.9 0.6 0.5 1.6 14.6 

Home equity loans ....................................................... 314.9 11.1 0.7 9.6 133.5 84.6 13.4 0.5 3.2 58.3 

Other 1-4 family residential .......................................... 1,654.0 79.8 13.6 1.8 423.5 726.6 51.5 6.3 44.4 306.5 

Commercial and industrial loans ..................................... 931.5 156.6 11.5 9.4 447.6 61.1 13.2 2.1 11.5 218.6 

Loans to individuals ......................................................... 772.3 169.2 6.9 164.0 191.5 56.2 57.0 2.3 15.3 109.8 

Credit card loans .......................................................... 266.6 60.7 0.2 156.6 20.3 4.6 9.3 0.4 0.7 13.9 

Other loans to individuals ............................................. 505.7 108.6 6.7 7.4 171.2 51.7 47.7 2.0 14.6 95.9 

All other loans and leases (including farm) ..................... 508.1 150.4 21.0 18.7 130.3 17.4 8.5 0.9 6.5 154.5 

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

Memo: Other Real Estate Owned (in millions) 

5,336.9 603.6 81.1 204.1 2,086.8 1,081.4 153.3 16.8 108.2 1,001.6 

All other real estate owned .............................................. 5,513.8 286.6 151.6 7.2 2,668.5 1,196.7 162.4 34.9 225.1 780.7 

Construction and development .................................... 691.8 0.0 11.3 0.0 432.4 147.3 2.1 2.1 25.2 71.5 

Commercial real estate ................................................ 1,967.6 92.4 61.3 0.2 1,226.4 127.1 13.3 15.5 89.7 341.6 

Multifamily residential real estate ................................. 128.3 6.0 2.6 0.0 76.7 5.4 0.2 0.5 4.4 32.5 

1-4 family residential .................................................... 2,516.2 108.2 41.3 7.0 876.2 912.6 145.5 16.6 95.4 313.5 

Farmland ...................................................................... 108.2 0.0 35.2 0.0 50.0 6.5 1.4 0.3 10.5 4.3 

* See page 8 for explanations.
 

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

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

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

September 30, 2003 

Percent of Loans 30-89 Days Past Due 

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

All loans secured by real estate ............................ 0.85 1.29 0.85 0.68 0.87 0.80 0.73 1.09 0.76 1.02 0.77 

Construction and development ........................... 0.79 1.10 0.86 0.74 0.76 0.68 0.53 1.01 0.69 0.91 0.98 

Commercial real estate ...................................... 0.57 0.97 0.64 0.58 0.48 0.52 0.45 0.77 0.62 0.74 0.38 

Multifamily residential real estate ....................... 0.32 0.70 0.44 0.34 0.27 0.16 0.23 0.68 0.52 0.87 0.18 

Home equity loans .............................................. 0.41 0.57 0.42 0.35 0.42 0.38 0.43 0.49 0.49 0.49 0.27 

Other 1-4 family residential ................................ 1.09 1.75 1.16 0.83 1.10 0.96 1.00 1.50 0.92 1.32 0.99 

Commercial and industrial loans ........................... 0.75 1.65 1.23 1.01 0.61 0.64 0.60 0.87 1.21 1.05 0.77 

Loans to individuals ............................................... 1.85 2.50 1.97 1.89 1.81 1.94 1.78 1.73 2.31 1.64 1.67 

Credit card loans ................................................ 2.33 2.38 4.17 3.01 2.21 2.34 3.08 2.51 2.81 1.01 1.84 

Other loans to individuals ................................... 1.60 2.51 1.70 1.52 1.56 1.67 1.50 1.58 1.65 1.76 1.47 

All other loans and leases (including farm) ........... 0.46 0.97 0.55 0.47 0.43 0.43 0.24 0.62 0.49 0.65 0.52 

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

Percent of Loans Noncurrent** 

0.94 1.44 0.98 0.87 0.93 0.95 0.79 1.07 1.06 1.08 0.87 

All real estate loans ............................................... 0.81 1.07 0.82 0.80 0.80 0.81 0.58 1.21 0.65 0.98 0.66 

Construction and development ........................... 0.87 1.00 0.96 0.86 0.82 0.90 0.67 1.22 0.79 0.69 0.92 

Commercial real estate ...................................... 0.96 1.17 0.88 0.97 0.99 0.88 0.81 1.32 0.79 1.08 0.76 

Multifamily residential real estate ....................... 0.31 0.74 0.42 0.37 0.24 0.21 0.24 0.64 0.44 0.85 0.14 

Home equity loans .............................................. 0.23 0.27 0.22 0.23 0.23 0.19 0.18 0.35 0.34 0.31 0.13 

Other 1-4 family residential ................................ 0.83 1.06 0.81 0.80 0.84 0.79 0.55 1.46 0.52 0.96 0.73 

Commercial and industrial loans ........................... 2.51 1.92 1.44 1.63 2.84 3.65 2.18 2.26 1.32 1.40 1.57 

Loans to individuals ............................................... 1.29 1.01 0.88 0.84 1.41 1.90 0.84 0.69 1.56 0.68 0.98 

Credit card loans ................................................ 1.93 1.51 2.97 1.84 1.91 2.13 2.17 1.64 2.16 0.80 1.54 

Other loans to individuals ................................... 0.95 1.00 0.62 0.52 1.08 1.74 0.55 0.51 0.78 0.66 0.34 

All other loans and leases (including farm) ........... 0.71 1.27 1.25 0.74 0.65 0.76 0.46 0.71 0.77 1.43 0.75 

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

Percent of Loans Charged-off (net, YTD) 

1.17 1.21 0.93 0.93 1.26 1.59 0.88 1.31 0.93 1.04 0.81 

All real estate loans ............................................... 0.11 0.07 0.07 0.10 0.12 0.07 0.09 0.25 0.07 0.13 0.05 

Construction and development ........................... 0.12 0.11 0.09 0.12 0.14 0.05 0.09 0.18 0.12 0.17 0.08 

Commercial real estate ...................................... 0.12 0.07 0.08 0.15 0.15 0.07 0.07 0.27 0.07 0.10 0.11 

Multifamily residential real estate ....................... 0.02 0.11 0.03 0.00 0.02 0.01 0.02 0.03 0.02 0.09 0.01 

Home equity loans .............................................. 0.16 0.06 0.04 0.11 0.18 0.04 0.14 0.30 0.15 0.20 0.06 

Other 1-4 family residential ................................ 0.09 0.07 0.07 0.08 0.10 0.04 0.08 0.26 0.06 0.14 0.03 

Commercial and industrial loans ........................... 1.30 0.63 0.68 0.94 1.47 1.61 1.17 1.23 0.71 0.77 1.36 

Loans to individuals ............................................... 2.94 0.85 1.87 2.37 3.19 3.55 2.18 1.77 3.82 1.11 3.70 

Credit card loans ................................................ 5.71 4.34 9.89 6.69 5.49 5.71 7.68 5.04 5.79 2.50 5.45 

Other loans to individuals ................................... 1.41 0.76 0.81 0.93 1.62 1.90 1.04 1.16 0.58 0.86 1.84 

All other loans and leases (including farm) ........... 0.44 0.32 0.40 0.39 0.45 0.49 0.32 0.50 0.30 0.51 0.38 

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

Loans Outstanding (in billions) 

0.80 0.30 0.30 0.50 0.90 1.20 0.60 0.70 1.00 0.40 0.60 

All real estate loans ............................................... $3,124.9 $89.7 $551.4 $542.4 $1,941.4 $705.1 $704.0 $616.0 $163.8 $237.6 $698.5 

Construction and development ........................... 263.7 8.6 68.2 60.5 126.4 31.1 78.6 61.3 15.9 37.3 39.5 

Commercial real estate ...................................... 665.7 24.9 193.0 157.0 290.8 132.6 161.2 147.5 43.9 72.9 107.6 

Multifamily residential real estate ....................... 147.6 2.2 24.8 35.4 85.2 37.4 18.9 27.7 5.2 6.5 51.9 

Home equity loans .............................................. 314.9 2.9 30.7 37.4 243.9 67.5 76.5 87.0 8.9 15.9 59.0 

Other 1-4 family residential ................................ 1,654.0 40.8 216.2 246.4 1,150.5 403.9 359.5 282.2 77.2 95.1 436.1 

Commercial and industrial loans ........................... 931.5 20.9 104.8 117.8 687.9 299.9 197.7 218.8 45.9 59.8 109.4 

Loans to individuals ............................................... 772.3 14.6 60.3 96.4 601.0 298.7 133.9 125.2 55.2 43.3 116.1 

Credit card loans ................................................ 266.6 0.3 6.6 23.8 235.9 122.6 24.2 20.6 31.3 6.6 61.3 

Other loans to individuals ................................... 505.7 14.3 53.7 72.6 365.1 176.1 109.6 104.6 23.9 36.6 54.8 

All other loans and leases (including farm) ........... 508.1 14.9 30.7 39.4 423.0 194.6 98.5 120.1 43.2 17.4 34.3 

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

Memo: Other Real Estate Owned (in millions) 

5,336.9 140.2 747.3 796.1 3,653.4 1,498.3 1,134.1 1,080.1 308.1 358.0 958.3 

All other real estate owned .................................... 5,513.8 374.2 1,475.4 981.6 2,682.6 750.3 1,210.3 1,376.5 437.4 889.6 849.6 

Construction and development ........................... 691.8 53.5 250.0 167.6 220.8 36.6 131.7 151.2 91.1 184.1 97.1 

Commercial real estate ...................................... 1,967.6 150.2 664.3 486.5 666.6 276.6 496.4 354.7 181.1 345.2 313.6 

Multifamily residential real estate ....................... 128.3 11.5 39.1 29.6 48.2 9.5 40.6 20.9 8.7 39.9 8.7 

1-4 family residential .......................................... 2,516.2 134.8 463.9 301.6 1,615.8 320.5 529.6 837.2 135.0 291.4 402.5 

Farmland ............................................................ 108.2 24.5 59.1 7.3 17.3 1.9 13.7 12.8 22.9 29.9 27.0 

* See page 9 for explanations.
 

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

ALL FDIC-INSURED INSTITUTIONS 11 THIRD QUARTER 2003 
 

FDIC Quarterly Banking Profile 

Insurance Fund Indicators 

� Third Quarter Deposit Growth Is Flat 

� BIF Reserve Ratio Rises 2 Basis Points to 1.31 Percent 

� SAIF Reserve Ratio Increases 1 Basis Point to 1.40 Percent 

Total deposits held by insured institutions increased by 

only 0.1 percent ($6.4 billion) during the third quarter, 

as domestic deposits decreased by 0.15 percent ($7.7 

billion), and foreign office deposits increased by 2.1 percent ($14.1 billion). The domestic deposit decline was 

driven by decreased demand deposits (–$46.2 billion) 

and time deposits under $100 thousand (–$18.0 billion). These decreases were partially offset by increases 

in money market deposit accounts (+$41.9 billion) and 

other savings deposits (+$8.9 billion). During the first 

nine months of 2003, deposits held by insured institutions rose by 5.1 percent ($282.6 billion), as domestic 

deposits increased by 5.1 percent ($248.4 billion), and 

foreign office deposits grew by 5.2 percent ($34.1 billion). 

Deposits insured by the FDIC decreased by 0.1 percent 

($3.1 billion) during the third quarter of 2003. This 

was the first decrease since the first quarter of 1999 

when insured deposits dropped by 0.7 percent ($19.4 

billion). Deposits insured by the Bank Insurance Fund 

(BIF) totaled $2.5 trillion on September 30, 2003, 

unchanged from the previous quarter. During the third 

quarter, the BIF increased by 2.0 percent ($662 million) 

to $33.46 billion (unaudited). More than four fifths of 

the increase to the BIF ($543 million) came from 

reducing reserves previously set aside for future estimated failure costs. The BIF was reduced $45 million by 

unrealized losses on available-for-sale securities, and was 

increased by $164 million (net of expenses) from interest on securities, insurance assessments, and other revenue. The increase to the BIF and the flat deposit 

growth pushed the reserve ratio of the Bank Insurance 

Fund to 1.31 percent, two basis points higher than the 

previous quarter, 6 basis points higher than the previous 

year, and the largest year-to year increase in 24 quarters. 

Deposits insured by the Savings Association Insurance 

Fund (SAIF) decreased by 0.45 percent in the third 

quarter to $867.6 billion. This was the first quarterly 

decrease in SAIF-insured deposits since the second 

quarter of 1999. The balance of the SAIF was $12.19 

billion (unaudited) on September 30, 2003, up $103 

million during the quarter. The reserve ratio of the 

SAIF was 1.40 percent at the end of the third quarter, 

one basis point higher than three months earlier. 

There were no failures of FDIC insured institutions during the third quarter of 2003. During the first nine 

months of 2003, two institutions failed; both were BIFmembers. At the time of failure these institutions had 

$1.1 billion in assets with estimated loss to the insurance fund of $100 million. 

Changes in Insurance Fund Balances 

(dollar figures in millions) Bank Insurance Fund 

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

2003 2003 2003 2002 2002 2002 2002 

Savings Association Insurance Fund 

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

2003 2003 2003 2002 2002 2002 2002 

Beginning Fund Balance $32,800 $32,382 $32,050 $31,383 $31,187 $30,697 $30,439 

Unrealized Gain (Loss) on 

Available-For-Sale Securities –45 38 103 –72 433 183 22 

Provision for Insurance Losses –543 –133 –6 –497 447 –19 –18 

All Other Income, Net of Expenses 164 247 223 242 210 288 218 

Total Fund Balance Change 662 418 332 667 196 490 258 

Ending Fund Balance $33,462 $32,800 $32,382 $32,050 $31,383 $31,187 $30,697 

$12,083 $11,906 $11,747 $11,586 $11,323 $11,049 $10,935 

–16 13 33 –26 147 61 10 

–26 –45 –21 –70 –4 –79 –3 

93 119 105 117 112 134 101 

103 177 159 161 263 274 114 

$12,186 $12,083 $11,906 $11,747 $11,586 $11,323 $11,049 

THIRD QUARTER 2003 12 ALL FDIC-INSURED INSTITUTIONS 
1.43 1.42 BIF SAIF 

1.39 

1.37 1.37 1.36 1.36 

1.38 1.39 

1.37 1.37 

1.39 

1.40 

1.35 

1.31 

1.29 

Target 

Ratio 1.26 1.25 1.25 

1.27 1.28 

1.25 1.23 

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

FDIC Quarterly Banking Profile 

TABLE I-B. Selected Insurance Fund Indicators* 

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

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

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

include U.S. branches of foreign banks. 

TABLE II-B. Closed/Assisted Institutions 

(dollar figures in millions) 

2003** 2002** 2002 2001 2000 1999 1998 

BIF Members 

Number of institutions ......................................... 2 7 10 3 6 7 3 

Total assets ...................................................... $1088 ... $2403 $2508 $54 $378 $1490 $371 

SAIF Members 

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

Total assets ...................................................... $0 $50 $50 $2200 $30 $71 $0 

(dollar figures in millions) 

3rd Quarter 2nd Quarter 3rd Quarter %Change 

2003 2003 2002 02:3-03:3 

Bank Insurance Fund 

Reserve ratio (%).................................................................. 1.31 1.29 1.25 5.2 

Fund Balance ...................................................................... $33,462 32,800 31,383 6.6 

Estimated insured deposits ...................................................... 2,547,889 2,547,109 2,513,160 1.4 

SAIF-member Oakars............................................................ 102,116 100,398 90,087 13.4 

BIF-members ..................................................................... 2,445,773 2,446,711 2,423,073 0.9 

Assessment base .................................................................. 4,090,423 4,085,149 3,769,397 8.5 

SAIF-member Oakars............................................................ 105,840 103,674 91,770 15.3 

BIF-members ..................................................................... 3,984,583 3,981,475 3,677,627 8.3 

Savings Association Insurance Fund 

Reserve ratio (%) .................................................................. 1.40 1.39 1.39 1.0 

Fund Balance ........................................................................ $12,186 12,083 11,586 5.2 

Estimated insured deposits ...................................................... 867,562 871,477 833,029 4.1 

BIF-member Oakars ............................................................ 391,866 393,601 354,919 10.4 

SAIF-member Sassers ......................................................... 94,310 92,550 93,067 1.3 

Other SAIF members ............................................................ 381,386 385,326 385,042 -0.9 

Assessment base ................................................................ 1,054,730 1,037,914 954,539 10.5 

BIF-member Oakars ............................................................ 395,959 399,185 359,793 10.1 

SAIF-member Sassers ......................................................... 118,850 115,187 113,860 4.4 

Other SAIF members ............................................................ 539,922 523,542 480,887 12.3 

Insurance Fund Reserve Ratios* 

Percent of Insured Deposits 

Fund Balances and Insured Deposits* 

($Millions) 

BIF BIF-Insured SAIF SAIF-Insured 

Balance Deposits Balance Deposits 

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

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

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

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

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

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

9/02 31,383 2,513,160 11,586 833,029 

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

3/03 32,282 2,531,307 11,906 867,908 

6/03 32,800 2,547,109 12,083 871,477 

9/03 33,462 2,547,889 12,186 867,562 

** Through September 30. 

ALL FDIC-INSURED INSTITUTIONS 13 THIRD QUARTER 2003 
FDIC Quarterly Banking Profile 

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

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

BIF Members 

Number of institutions reporting ..................... 8,043 8,171 8,125 8,326 8,571 8,834 9,031 

BIF-member Oakars ................................. 806 790 801 766 743 744 745 

Other BIF-members ................................. 7,237 7,381 7,324 7,560 7,828 8,090 8286 

Total assets ............................................... $7,758,900 $7,186,677 $7,335,938 $6,857,284 $6,510,744 $5,980,128 $5,702,872 

Total deposits ............................................ 5,095,393 4,700,106 4,854,895 4,567,608 4,337,665 3,987,340 3,843,779 

Net income ................................................ 78,809 70,484 92,655 76,500 73,430 73,948 64,451 

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

Return on equity (%) ................................... 15.12 14.70 14.34 12.91 13.86 15.11 13.82 

Noncurrent assets plus OREO to assets (%) ... 0.78 0.95 0.91 0.90 0.72 0.62 0.64 

Number of problem institutions ..................... 103 123 116 90 74 66 68 

Assets of problem institutions ........................ $29,371 $34,500 $32,176 $31,881 $10,787 $4,450 $5,326 

Number of failed/assisted institutions ............. 2 8 10 3 6 7 3 

Assets of failed/assisted institutions ............... $1,088 $2,413 $2,508 $54 $378 $1,490 $371 

SAIF Members 

Number of institutions reporting ..................... 1,194 1,244 1,229 1,287 1,333 1,387 1,432 

SAIF-member Oakars ............................... 138 133 133 130 123 123 116 

Other SAIF-members ................................ 1,056 1,111 1,096 1,157 1,210 1,264 1316 

Total assets ............................................... $1,186,834 $1,086,232 $1,099,966 $1,011,737 $952,161 $903,532 $828,177 

Total deposits ............................................ 755,677 691,863 713,599 621,825 577,100 550,703 542,481 

Net income ................................................ 10,985 9,696 12,463 10,623 8,070 8,450 7,568 

Return on assets (%) ................................... 1.28 1.22 1.17 1.11 0.89 0.99 0.98 

Return on equity (%) ................................... 14.18 13.93 12.79 13.46 11.12 11.97 11.29 

Noncurrent assets plus OREO to assets (%) .... 0.71 0.74 0.79 0.75 0.65 0.64 0.80 

Number of problem institutions ...................... 13 23 20 24 20 13 16 

Assets of problem institutions ........................ $933 $7,551 $6,751 $7,923 $13,053 $5,524 $5,992 

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

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

* Excludes insured branches of foreign banks (IBAs). 

** Through September 30, ratios annualized where appropriate . 

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

(dollar figures in millions) 

September 30, 2003 

Commercial Banks and Savings Institutions 

Number of 

Institutions 

Total 

Assets 

Domestic 

Depostis* BIF SAIF Total 

Estimated Insured Deposits 

FDIC-Insured Commercial Banks ..................... 7,812 7,474,311 4,224,399 2,281,571 409,569 2,691,141 

BIF-member ................................................ 7,700 7,300,861 4,109,980 2,247,158 354,501 2,601,660 

SAIF-member ............................................. 112 173,450 114,419 34,413 55,068 89,481 

FDIC-Supervised ....................................... 4,832 1,346,239 995,177 626,537 86,484 713,021 

OCC-Supervised .......................................... 2,031 4,202,114 2,295,687 1,218,563 234,787 1,453,350 

Federal Reserve-Supervised ........................ 949 1,925,959 933,535 436,471 88,298 524,769 

FDIC-Insured Savings Institutions ..................... 1,425 1,471,423 934,489 265,062 457,993 723,055 

OTS-Supervised Savings Institutions .................. 936 1,101,886 673,376 125,012 388,983 513,995 

BIF-member ................................................ 42 156,082 80,274 60,323 7,597 67,920 

SAIF-member ............................................. 894 945,804 593,102 64,689 381,386 446,075 

FDIC-Supervised State Savings Banks ............... 489 369,537 261,112 140,050 69,010 209,060 

BIF-member ................................................ 301 301,958 213,369 137,036 29,768 166,804 

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

Total Commercial Banks and 

188 67,579 47,743 3,014 39,242 42,256 

Savings Institutions .................................... 9,237 8,945,735 5,158,888 2,546,633 867,562 3,414,196 

BIF-member ................................................ 8,043 7,758,900 4,403,623 2,444,517 391,866 2,836,383 

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

Other FDIC-Insured Institutions 

1,194 1,186,834 755,265 102,116 475,696 577,812 

U.S. Branches of Foreign Banks ........................ 15 9,925 5,205 1,256 0 1,256 

Total FDIC-Insured Institutions ........................ 9,252 8,955,659 5,164,093 2,547,889 867,562 3,415,452 

* Excludes $692 billion in foreign office deposits, which are uninsured. 

THIRD QUARTER 2003 14 ALL FDIC-INSURED INSTITUTIONS 
 

 

FDIC Quarterly Banking Profile 

TABLE V-B. Assessment Base Distribution and Rate Schedule 

BIF Assessment Base Distribution
 

Assessable Deposits in Billions as of September 30, 2003
 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2004
 

Capital Group 

Supervisory Risk Subgroup Supervisory Risk Subgroup 

A B C 

1. Well-capitalized

 Number of institutions ........................ 7,400 91.8 470 5.8 82 1.0

 Assessable deposit base .................... $3,939 96.3 $119 2.9 $18 0.4 

2. Adequately capitalized

 Number of institutions ........................ 82 1.0 8 0.1 13 0.2

 Assessable deposit base .................... $11 0.3 $1 0.0 $2 0.1 

3. Undercapitalized

 Number of institutions ........................ 0 0.0 2 0.0 1 0.0

 Assessable deposit base .................... $0 0.0 $0 0.0 $0 0.0 

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

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

by on-site examinations. 

SAIF Assessment Base Distribution
 

Assessable Deposits in Billions as of September 30, 2003
 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2004
 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized

 Number of institutions ........................... 1,092 91.5 81 6.8 13 1.1

 Assessable deposit base ...................... $1,019 96.6 $34 3.2 $1 0.1

2. Adequately capitalized

 Number of institutions ........................... 4 0.3 1 0.1 3 0.3

 Assessable deposit base ...................... $1 0.1 $0 0.0 $0 0.0

3. Undercapitalized

 Number of institutions ........................... 0 0.0 0 0.0 0 0.0

 Assessable deposit base ...................... $0 0.0 $0 0.0 $0 0.0

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

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

by on-site examinations. 

Assessment Rate Schedule
 

First Semiannual 2004 Assessment Period
 

Cents per $100 of Assessable Deposits
 

Supervisory Risk Subgroup 

Capital Group A B C 

1. Well-capitalized .................................... 0 3 17 

2. Adequately capitalized ........................... 3 10 24 

3. Undercapitalized .................................... 10 24 27 

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

Currently, the rate schedules are identical. 

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

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

Number of Institutions 

193 

117 

92 84 79 

94 

114 

136 129 125 116 

0 

50 

100 

150 

200 

SAIF Members 

BIF Members 

12/95 12/96 12/97 12/98 12/99 12/00 12/01 3/03 6/03 9/03 12/02 

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

BIF Members 151 86 73 68 66 74 90 116 111 111 103
 

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

$ Billions 

SAIF Members 

BIF Members 

$31 

$12 

$6 $11 $10 

$24 

$40 $39 $35 $32 $30 

0 

20 

40 

60 

80 

12/95 12/96 12/97 12/98 12/99 12/00 12/01 12/02 3/03 6/03 9/03
 

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

BIF Members 20 7 5 5 4 11 32 32 32 31 29
 

THIRD QUARTER 2003 16 ALL FDIC-INSURED INSTITUTIONS
 
 

FDIC Quarterly Banking Profile 

Notes To Users 

This publication contains financial data and other information 

for depository institutions insured by the Federal Deposit Insurance Corporation (FDIC). These notes are an integral part of 

this publication and provide information regarding the comparability of source data and reporting differences over time. 

Tables I-A through V-A. 

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

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

institutions based on predominant types of asset concentration, 

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

selected indicators, including aggregate condition and income 

data, performance ratios, condition ratios and structural 

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

Tables I-B through V-B. 

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

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

and assessments. 

Summary balance-sheet and earnings data are provided for 

commercial banks and savings institutions according to insurance fund membership. BIF-member institutions may acquire 

SAIF-insured deposits, resulting in institutions with some 

deposits covered by both insurance funds. Also, SAIF members 

may acquire BIF-insured deposits. The insurance fund membership does not necessarily reflect which fund insures the largest 

percentage of an institution’s deposits. Therefore, the BIFmember and the SAIF-member tables each include deposits 

from both insurance funds. Depository institutions that are not 

insured by the FDIC through either the BIF or SAIF are not 

included in the FDIC Quarterly Banking Profile. U.S. branches 

of institutions headquartered in foreign countries and nondeposit trust companies are not included unless otherwise indicated. Efforts are made to obtain financial reports for all active 

institutions. However, in some cases, final financial reports are 

not available for institutions that have closed or converted 

their charter. 

DATA SOURCES 

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Call Reports and the OTS Thrift 

Financial Reports submitted by all FDIC-insured depository 

institutions. This information is stored on and retrieved from 

the FDIC’s Research Information System (RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting and 

accounting requirements of the FFIEC Call Reports. Parent 

institutions are required to file consolidated reports, while their 

subsidiary financial institutions are still required to file separate 

reports. Data from subsidiary institution reports are included in 

the Quarterly Banking Profile tables, which can lead to doublecounting. No adjustments are made for any double-counting of 

subsidiary data. 

All asset and liability figures used in calculating performance 

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

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

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

includes the results of all merged institutions. No adjustments 

are made for “purchase accounting” mergers. Growth rates represent the percentage change over a 12-month period in totals
 

for institutions in the base period to totals for institutions in
 

the current period. 


All data are collected and presented based on the location of
 

each reporting institution’s main office. Reported data may
 

include assets and liabilities located outside of the reporting
 

institution’s home state.
 

ACCOUNTING CHANGES
 

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

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

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

(financial standby letters of credit, performance standby letters
 

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

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

previous accounting for guarantees issued prior to January 1,
 

2003, is not revised.
 

FASB Interpretation No. 46 — The FASB issued Interpretation
 

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

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

interests” in variable interest entities. Banks with variable
 

interests in variable interest entities created after January 31,
 

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

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

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

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

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

later than the beginning of the first interim or annual reporting period beginning after September 15, 2003. A bank that is
 

neither a public company nor a subsidiary of a public company,
 

but has a variable interest in a variable interest entity created
 

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

first annual reporting period beginning after June 15, 2003.
 

Goodwill and intangible assets — FAS 141 terminates the use of
 

pooling-of-interest accounting for business combinations after
 

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

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

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

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

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

(and not as noninterest expense). Subsequent annual review
 

of intangibles and goodwill impairment may require additional
 

noninterest expense recognition. FASB Statement No. 147
 

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

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

under FASB Statement No. 141. This accounting standard
 

includes transition provisions that apply to unidentifiable
 

intangible assets previously accounted for in accordance with
 

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

acquisition) in which an unidentifiable intangible asset arose
 

does not meet the definition of a business combination, this
 

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

Report balance sheet. Rather, this unidentifiable intangible
 

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

reported in the Call Report income statement.
 

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

standards. Derivatives were previously off-balance sheet items,
 

but beginning in 2001 all banks must recognize derivatives as
 

ALL FDIC-INSURED INSTITUTIONS 17 THIRD QUARTER 2003 
 

 

 

FDIC Quarterly Banking Profile 

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

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

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

derivative, its resulting designation, and the effectiveness of the 

hedge. Derivatives held for purposes other than trading are 

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

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

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

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

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

flow hedges are recorded on the balance sheet as “accumulated 

other comprehensive income” and the periodic change in the 

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

directly in equity as the value of the derivative changes. 

Initial transition adjustments upon adoption of FAS 133 are 

reported as adjustments to net income in the income statement 

as extraordinary items. Upon implementing FAS 133, a bank 

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

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

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

securities on the date of initial application must be reflected as 

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

Subchapter S Corporations — The Small Business Job Protection 

Act of 1996 changed the Internal Revenue Code to allow financial institutions to elect Subchapter S corporation status, beginning in 1997. A Subchapter S corporation is treated as a 

pass-through entity, similar to a partnership, for federal income 

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

taxes at the corporate level. Its taxable income flows through to 

its shareholders in proportion to their stock ownership, and the 

shareholders generally pay federal income taxes on their share of 

this taxable income. This can have the effect of reducing institutions’ reported taxes and increasing their after-tax earnings. 

The election of Subchapter S status may result in an increase in 

shareholders’ personal tax liability. Therefore, some S corporations may increase the amount of earnings distributed as dividends to compensate for higher personal taxes. 

DEFINITIONS (in alphabetical order) 

All other assets — total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, 

investment in unconsolidated subsidiaries, customers’ liability on 

acceptances outstanding, assets held in trading accounts, federal 

funds sold, securities purchased with agreements to resell, fair 

market value of derivatives, and other assets. 

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

preferred stock, allowance for estimated off-balance sheet credit 

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

Assessment base distribution — assessable deposits consist of BIF 

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

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) Capital * Capital * Leverage Equity 

Well-capitalized >10 and >6 and >5 — 

Adequately 

capitalized >8 and >4 and >4 — 

Undercapitalized >6 and >3 and >3 — 

Significantly 

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

Critically 

undercapitalized — — — <2 

*As a percentage of risk-weighted assets. 

For purpose of BIF and SAIF assessments, risk-based assessment 

rules combine the three lowest capital rating categories into a 

single “undercapitalized” group. Supervisory risk subgroup 

assignments are based on supervisory ratings. Generally, the 

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

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

Assets securitized and sold — total outstanding principal balance 

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

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

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

“Oakar” institutions, it represents the adjusted attributable 

amount acquired from BIF members. 

Construction and development loans — includes loans for all property types under construction, as well as loans for land acquisition and development. 

Core capital — common equity capital plus noncumulative perpetual preferred stock plus minority interest in consolidated subsidiaries, less goodwill and other ineligible intangible assets. The 

amount of eligible intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations. 

Cost of funding earning assets — total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets. 

Derivatives (notional amount) — represents the sum of the following: interest-rate contracts (defined as the “notional” value of 

interest-rate swap, futures, forward and option contracts), foreign-exchange-rate contracts, commodity contracts and equity 

contracts (defined similarly to interest-rate contracts). 

Futures and forward contracts — a contract in which the 

buyer agrees to purchase and the seller agrees to sell, at a

specified future date, a specific quantity of an underlying

variable or index at a specified price or yield. These contracts exist for a variety of variables or indices, (traditional

agricultural or physical commodities, as well as currencies

and interest rates). Futures contracts are standardized and

are traded on organized exchanges which set limits on counterparty credit exposure. Forward contracts do not have

standardized terms and are traded over the counter. 

Option contracts — a contract in which the buyer acquires the right to buy from or sell to another party some specified

amount of an underlying variable or index at a stated price

(strike price) during a period or on a specified future date, in

return for compensation (such as a fee or premium). The

seller is obligated to purchase or sell the variable or index at

the discretion of the buyer of the contract. 

Swaps — an obligation between two parties to exchange a series of cash flows at periodic intervals (settlement dates),

for a specified period. The cash flows of a swap are either

fixed, or determined for each settlement date by multiplying

the quantity (notional principal) of the underlying variable

or index by specified reference rates or prices. Except for

currency swaps, the notional principal is used to calculate

each payment but is not exchanged. 

Domestic deposits to total assets — total domestic office deposits as 

a percent of total assets on a consolidated basis.
 

Earning assets — all loans and other investments that earn interest or dividend income.
 

Efficiency Ratio — Noninterest expense less amortization of intangible assets as a percent of net interest income plus noninterest
 

income. This ratio measures the proportion of net operating revenues that are absorbed by overhead expenses, so that a lower
 

value indicates greater efficiency.
 

Estimated insured deposits — in general, insured deposits are total
 

domestic deposits minus estimated uninsured deposits. While
 

the uninsured estimate is calculated as the sum of the excess
 

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

THIRD QUARTER 2003 18 ALL FDIC-INSURED INSTITUTIONS 
 

FDIC Quarterly Banking Profile 

amount of estimated uninsured deposits was adjusted to consider 

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

all institutions provide a reasonable estimate of uninsured 

deposits from their systems and records. 

Failed/assisted institutions — an institution fails when regulators 

take control of the institution, placing the assets and liabilities 

into a bridge bank, conservatorship, receivership, or another 

healthy institution. This action may require the FDIC to provide funds to cover losses. An institution is defined as “assisted” 

when the institution remains open and receives some insurance 

funds in order to continue operating. 

FHLB advances — all borrowings by FDIC insured institutions 

from the Federal Home Loan Bank System (FHLB), as reported 

by Call Report filers and by TFR filers. 

Goodwill and other intangibles — intangible assets include servicing rights, purchased credit card relationships and other identifiable intangible assets. 

Loans secured by real estate — includes home equity loans, junior 

liens secured by 1-4 family residential properties and all other 

loans secured by real estate. 

Loans to individuals — includes outstanding credit card balances 

and other secured and unsecured consumer loans.
 

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

remaining maturities or repricing intervals of over five years.
 

Mortgage-backed securities — certificates of participation in pools
 

of residential mortgages and collateralized mortgage obligations
 

issued or guaranteed by government-sponsored or private enterprises. Also, see “Securities”, below.
 

Net charge-offs — total loans and leases charged off (removed
 

from balance sheet because of uncollectibility), less amounts
 

recovered on loans and leases previously charged off.
 

Net interest margin — the difference between interest and dividends earned on interest-bearing assets and interest paid to
 

depositors and other creditors, expressed as a percentage of average earning assets. No adjustments are made for interest income
 

that is tax exempt.
 

Net loans to total assets — loans and lease financing receivables,
 

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

total assets on a consolidated basis.
 

Net operating income — income excluding discretionary transactions such as gains (or losses) on the sale of investment securities
 

and extraordinary items. Income taxes subtracted from operating
 

income have been adjusted to exclude the portion applicable to
 

securities gains (or losses).
 

Noncurrent assets — the sum of loans, leases, debt securities and
 

other assets that are 90 days or more past due, or in nonaccrual
 

status. 


Noncurrent loans & leases — the sum of loans and leases 90 days 

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

Number of institutions reporting — the number of institutions that 

actually filed a financial report. 

Other borrowed funds — federal funds purchased, securities sold 

with agreements to repurchase, demand notes issued to the U.S. 

Treasury, FHLB advances, other borrowed money, mortgage 

indebtedness, obligations under capitalized leases and trading liabilities, less revaluation losses on assets held in trading accounts. 

Other real estate owned — primarily foreclosed property. Direct 

and indirect investments in real estate ventures are excluded. 

The amount is reflected net of valuation allowances. For institutions that file a Thrift Financial Report (TFR), the valuation 

allowance subtracted also includes allowances for other repossessed assets. Also, for TFR filers the components of other real 

estate owned are reported gross of valuation allowances. 

Percent of institutions with earnings gains — the percent of institutions that increased their net income (or decreased their losses) 

compared to the same period a year earlier. 

“Problem” institutions — federal regulators assign a composite rating to each financial institution, based upon an evaluation of 

financial and operational criteria. The rating is based on a scale 

of 1 to 5 in ascending order of supervisory concern. “Problem” 

institutions are those institutions with financial, operational, or 

managerial weaknesses that threaten their continued financial 

viability. Depending upon the degree of risk and supervisory 

concern, they are rated either a “4” or “5”. For all BIF-member 

institutions, and for all SAIF-member institutions for which the 

FDIC is the primary federal regulator, FDIC composite ratings 

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

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

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

2003 reserves for losses did not include the allocated transfer risk 

reserve, which was netted from loans and leases. 

Restructured loans and leases — loan and lease financing receivables with terms restructured from the original contract. Excludes 

restructured loans and leases that are not in compliance with the 

modified terms. 

Retained earnings — net income less cash dividends on common 

and preferred stock for the reporting period.
 

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

assets. The basic yardstick of bank profitability.
 

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

equity capital.
 

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

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

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

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

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

“Oakar” institutions, it represents the adjusted attributable
 

amount acquired from SAIF members.
 

Securities — excludes securities held in trading accounts. Banks’
 

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

and securities designated as “available-for-sale”, reported at fair
 

(market) value.
 

Securities gains (losses) — realized gains (losses) on held-to-maturity and available-for-sale securities, before adjustments for
 

income taxes. Thrift Financial Report (TFR) filers also include
 

gains (losses) on the sales of assets held for sale.
 

Troubled real estate asset rate — noncurrent real estate loans plus
 

other real estate owned as a percent of total real estate loans and
 

other real estate owned.
 

Trust assets — market value, or other reasonably available value
 

of fiduciary and related assets, to include marketable securities,
 

and other financial and physical assets. Common physical
 

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

are not included in the assets of the financial institution.
 

Unearned income & contra accounts — unearned income for Call 

Report filers only. 

Unused loan commitments — includes credit card lines, home 

equity lines, commitments to make loans for construction, loans 

secured by commercial real estate, and unused commitments to 

originate or purchase loans. 

Volatile liabilities — the sum of large-denomination time deposits, 

foreign-office deposits, federal funds purchased, securities sold 

under agreements to repurchase, and other borrowings. 

Yield on earning assets — total interest, dividend and fee income 

earned on loans and investments as a percentage of average earning assets. 

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

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

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

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

The FDIC Quarterly Banking Profile is available on-line by visiting the FDIC’s website at www.fdic.gov. Comparable financial data for individual institutions can now be obtained from the FDIC’s Institution Directory (I.D.) 

System on this web site. 

Chairman Donald E. Powell 

Director, Division of Insurance Arthur J. Murton 

and Research 

Media Inquiries (202) 898-6993 

Authors Don Inscoe 

Associate Director, Statistics Branch 

(202) 898-3940 

Kevin Brown 

(202) 898-6817 

Ross Waldrop 

(202) 898-3951