Third Quarter, 1993 

The FDIC 

uarte r ly:______A_nd_re_w_c_.H_o_ve_,J_r._,c_h_ai_rm_a_n_ 

anking R~ofile 

COMMERCIAL BANKING PERFORMANCE - THIRD QUARTER, 1993 

• Commercial Banks Earn Record $11.45 Billion In Third Quarter 

• Improving Credit Quality Helps Produce Higher Profits 

• Strength In Non-Commercial Lending Propels Loan Growth 

• Troubled Asset Levels Continue To Shrink 

Insured commercial banks reported record profits of 

$11.45 billion in the third quarter of 1993, surpassing 

the previous quarterly record of $10.8 billion, set in the 

first quarter of this year. Industry net income was more 

than one-third higher than the $8.5 billion earned a 

year ago, and $1.1 billion above the level of the 

previous quarter. Lower loan-loss provisions, 

reflecting improved credit quality, and increased 

noninterest income provided most of the increase in 

earnings. Net interest income was higher, while 

growth in overhead expense was moderate. Through 

the first nine months of 1993, commercial bank 

earnings totaled $32.6 billion, surpassing the record 

$32.1 billion banks earned in all of last year. 

Industry profitability, as measured by return on assets, 

also set a new record in the third quarter. The 

annualized return on assets averaged 1.27 percent, 

surpassing the previous high of 1.23 percent reached 

in the first quarter. The average return on equity for 

the third quarter, 16.08 percent, was slightly below the 

record 16.11 percent reached in the first quarter, due 

to strong equity capital growth in the last two quarters. 

But third-quarter earnings were not as dependent on 

nonrecurring gains such as accounting changes and 

profits from sales of investment securities. After taxes, 

these items represented less than $1 billion of total net 

income in the third quarter, whereas in the first quarter 

they contributed more than $2.5 billion. Excluding 

nonrecurring items, commercial banks' core net 

operating income has increased in each of the last 

QUARTERLY NET INCOME OF FDIC-INSURED 

COMMERCIAL BANKS, 1989-1993 FDIC $ BIiiion• Division of Research 

&Statistics 

Don Inscoe 10 Associate Director, 

Statistics Branch 

(202) 898-3940 

Tim Critchfield 5 (202) 898-8557 

Jim McFadyen 

(202) 898-7207 

Ross Waldrop 

(202) 898-3951 

: D Net Operating Income 

· ■ Securities and Othsr Gains, Net 

1234123412341234123 

1989 1 990 1991 1992 1 993 

seven quarters. The strength in core earnings was 

widespread in the third quarter; net operating income 

averaged over one percent of assets (on an 

annualized basis) for all six geographic regions and all 

four asset-size groups. Fewer than one in 20 banks 

lost money in the quarter or for the first nine months of 

the year, the lowest proportions seen in the ten years 

since quarterly income reporting began. 

A number of factors contributed to the earnings 

improvement. The $3.9 billion that banks set aside in 

loan-loss provisions in the third quarter was the 

smallest quarterly total since the first quarter of 1989, 

and was $2.8 billion below the level of a year earlier. 

Noninterest income was $2.2 billion higher, and net 

interest income was up by $1.2 billion, even though 

interest margins narrowed slightly. For the first nine 

months of 1993, industry earnings of $32.6 billion 

were $8.5 billion higher than in the same period last 

year, thanks to a $6.9-billion reduction in loan-loss 

provisioning, a $6.2-billion increase in noninterest 

income, and a $5.7-billion increase in net interest 

income. 

QUARTERLY NET INTEREST MARGINS OF 

FDIC-INSURED COMMERCIAL BANKS, 1985-1993 

Net Interest Margin (% ) 

5 r-;-,...,..,""!""'!",..,..~"T"l'1~""""""""'~:"::"='~-i"r':"~~ 

4.5 

3.5 .............................--+-.................................................................................. 12341234123412341234123412341234123 

1985 1986 1987 1988 1989 1~90 1991 1992 '93 

Net interest income was $416 million higher than in 

the previous quarter, but the industry's average net 

interest margin narrowed slightly, from 4.47 percent to 

4.45 percent, because of growth in earning assets. 

Although the average margin has declined for three 

consecutive quarters, the decline has been gradual 

and margins remain near the record 4.67 percent 

Requests for copies of ar,J subscriptions to the FDIC Quarterly Banking Profile should be made through the FD/C's 

Office of Corporate Communications, 550 17th Street, NW, Washington, DC 20429; telephone (202) 898-6985. 

For assistance contact: Section508@fdic.gov
registered in the fourth quarter of last year. The 

composition of bank liabilities continues to shift away 

from costlier, longer-term certificates of deposit, into 

noninterest-bearing demand deposits, lower-rate 

savings deposits, and short-maturity liabilities such as 

overnight borrowings. Also, increased levels of equity 

capital substitute for some interest-bearing liabilities. 

These shifts have driven down average funding costs 

and helped to offset falling asset yields. 

The improvement in troubled asset levels that began 

two years ago received another strong boost in the 

third quarter. Noncurrent loans, which fell by $4 billion, 

declined in all regions. The greatest improvements 

were at banks with the highest overall levels of 

troubled assets -- those in the Northeast and West 

Regions, and in the largest asset-size groups. 

Noncurrent loan levels improved in all major loan 

categories, even as net charge-off rates declined. The 

industry's holdings of foreclosed property registered a 

second consecutive record quarterly decline, shrinking 

by $2. 7 billion . Through the first nine months of 1993, 

the net reduction in banks' inventory of other real 

estate owned has totaled $5.8 billion. Troubled assets 

-- noncurrent loans plus foreclosed property -- are now 

at their lowest level since the first quarter of 1989, and 

represent the smallest percentage of total assets 

since the fourth quarter of 1986. 

Commercial banks' reserves for future loan losses 

declined by $196 million in the second quarter, to 

$53.9 billion. This is almost $2 billion below the peak 

level of $55.8 billion at the end of the first quarter of 

1991 . The larger decline in noncurrent loans during 

the quarter meant that the industry's coverage ratio 

rose above 100 percent for the first time in the twelve 

years that banks have reported noncurrent loan 

amounts. At the end of September, banks held $1.07 

in reserves for every dollar of noncurrent loans. The 

combination of high reserve coverage levels and the 

improving trend in asset quality has resulted in a 

number of banks taking negative loan-loss provisions, 

i.e. , taking funds out of reserves and adding them to 

operating revenues. In the third quarter, there were 

462 commercial banks reporting negative loan-loss 

provisions totaling $172 million. In the previous 

quarter, 421 banks had negative provisions amounting 

to $363 million, while in the second quarter of last 

year, there were 293 banks with negative provisions 

totaling only $45 million. Through the first nine months 

of 1993, 573 commercial banks have reported 

cumulative negative loss provisions totaling $452 

million. 

Total assets of commercial banks increased by $62 

billion in the third quarter, the largest quarterly 

increase since the fourth quarter of 1989. While 

assets grew at banks in all regions of the U.S., the 

increases were greatest outside the West and 

Northeast Regions. Strong growth in non-commercial 

loans (1-4 family residential mortgages and consumer 

loans), investment securities and trading account 

assets accounted for most of the increase. 

Commercial and industrial loans outstanding fell by 

$5.3 billion, to $529.7 billion, the lowest level since the 

end of 1983. 

At the end of September, there were 11,081 insured 

commercial banks filing quarterly financial reports, a 

net quarterly decrease of 118 banks. Fifteen banks 

failed in the third quarter, bringing the total for the first 

nine months of 1993 to 37 failures (including two 

SAIF-member commercial banks that were placed in 

Resolution Trust Corporation conservatorships). One 

hundred and eighteen banks merged without 

assistance, while 12 new banks were chartered during 

the quarter. The number of commercial banks on the 

FDIC's "Problem List" fell by 84 institutions, to 496 at 

the end of September, and their combined assets 

declined by $45 billion, to $281 billion. 

COMMERCIAL AND INDUSTRIAL LOAN GROWTH RATES 

SEPTEMBER 30, 1992 - SEPTEMBER 30, 1993 

Midwest Central Northeast 

':::J 

D 

■ 

Less than 0% 

Between O and 5% 

Greater than 5% 

FDIC Quarterly Banki ng Profile 

FDIC-Insured Commercial Banks 2 Third Quarter 1993 
TABLE 1-A. Selected Indicators, FDIC-Insured Commercial Banks 

1993* 1992* 1992 1991 1990 1989 1988 

Return on assets(%}....... ... .. .... ....... .. ... ........ ........... 1.23 0.94 0.93 0.53 0.48 0.49 0.82 

Return on equity(%) ............................................... 15.72 13.24 12.99 7.94 7.45 7.71 13.19 

Core capital (leverage) ratio(%).......... ...... .. ........... 7.66 7.14 7.20 6.49 6.17 6.09 6.15 

Noncurrent assets plus 

other real estate owned to assets (%) ................... 1.95 2.83 2.54 3.02 2.94 2.30 2.14 

Net charge-offs to loans(%).................................. .. 0.83 1.24 1.27 1.59 1.43 1.16 1.00 

Asset growth rate(%).................... .. ....... ............ ..... 4.31 1.40 2.18 1.21 2.73 5.38 4.36 

Net operating income growth (%) ....................... ..... 34.61 66.50 92.50 -0.62 2.53 -38.70 1555.43 

Number of institutions reporting .. ............... ....... ...... 11,081 11,590 11,462 11,921 12,343 12,709 13,123 

Percentage of unprofitable institutions .............. ...... 4.66 6.67 6.83 11.58 13.43 12.50 14.68 

Number of problem institutions ... ............ ................. 496 909 787 1,Q16 1,012 1,092 1,394 

Assets of problem institutions (in billions) .............. . $281 $488 $408 $528 $342 $188 $305 

Number of failed/assisted insrnutions ... ................... 37 64 100 108 159 206 221 

*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, FDIC-Insured Commercial Banks 

(dollar figures in millions) Preliminary 

3rd Qtr 2nd Qtr 3rd Qtr %Change 

1993 1993 1992 92:3-93:3 

Number of institutions reporting .... .... ... .... ............................. . .. 11,081 11 ,199 11 ,590 -4.4 

Total employees (full-time equivalent) .................................... . 1,476,848 1,476,542 1,474,465 0.2 

CONDITION DATA 

Total assets ..................... ............. .......................................... . $3,631,312 $3,569,309 $3,481 ,326 4.3 

Loans secured by real estate ................. ..... ........... .. ... ..... . 901,667 888,445 864,944 4.2 

Commercial & industrial loans .............................. ..... ....... . 529,728 535,032 539,398 -1 .8 

Loans to individuals ...................................... ............... ..... . 403,132 390,038 381 ,120 5.8 

Farm loans .............................. ............ ............. .. .............. .. 37,431 35,708 36,684 2.0 

Other loans & leases ................ ..... .... .. ............................. . 232,120 225,836 223,686 3.8 

Less: Unearned income ............ .. ......... ............................. . 7,164 7,722 9,544 -24.9 

Total loans & leases ....................... .................................... . 2,096,916 2,067,337 2,036,288 3.0 

Less: Reserve for losses .................................................. .. . 53,895 54,091 55,306 -2.6 

Net loans & leases ...................................................... .. ........ . 2,043,021 2,013,246 1,980,982 3.1 

Investment securities ................ ......................................... .... 820,949 809,866 758,828 8.2 

Other real estate owned.. .. .... ....... .. .. ............ ...... .............. .... . 19,918 22,600 28,008 -28.9 

Goodwill and other intangibles ................... .................. ......... 16,815 16,736 14,623 15.0 

All other assets ........................ ............................... ... ............ 730,610 706,862 698,884 4.5 

Total liabiltties and capital ....................................................... . 3,631 ,312 3,569,309 3,481,326 4.3 

Non interest-bearing deposits ............. .................................. . . 538,074 526,118 487,535 10.4 

Interest-bearing deposits .................... ..... ............................. . 2,158,246 2,154,318 2,157,927 0.0 

Other borrowed funds ...................................................... ...... 484,197 446,101 422,717 14.5 

Subordinated debt. ................... .. ............................... ........... . 37,000 36,954 30,268 22.2 

All other liabilities ........... .................. ......................... ......... .. .. 125,180 124,250 125,750 -0.5 

Equity capital. .. .. ........................................... .. ... ........ ... ........ . 288,615 281 ,569 257,128 12.2 

Loans and leases 30-89 days past due ...................... .... ........ . 28,734 29,381 34,079 -15.7 

Noncurrent loans and leases .... .. ....................... ......... .. ....... : .. . 50,193 54,177 69,382 -27.7 

Restructured loans and leases ...... ......... ... ............................. . 11,436 11,234 10,855 5.4 

Direct and indirect investments in real estate ........................ . . 386 461 587 -34.3 

1-4 Family residential mortgages ............................... ............ . 495,825 484,696 454,731 9.0 

Mortgage-backed securities ............................. ..... .............. .... 339,119 335,098 301 ,850 12.3 

Earning assets .... ....... ..................................................... ... ..... . 3,206,501 3,157,155 3,072,851 4.3 

Long-term assets (5+ years) ......................... ............... .......... . 519,691 513,389 507,671 2.4 

Volatile liabilities ..................................................................... . 1,013,635 969,481 971,139 4.4 

Foreign office deposits ...... ... .. .... ..... .. .. ................................... . 322,654 312,362 301,926 6.9 

Unused loan commitments ... ................................................... 1,381,216 1,336,500 1,248,804 10.6 

Off-balance-sheet derivatives .......... .... ....... ........................... .. 11 ,985,706 10,949,133 9,715,267 23.4 

Preliminary Preliminary 

First Three First Three 3rd Qtr 3rdQtr %Change 

INCOME DATA Qtrs 1993 Qtrs 1992 1993 1992 92:3-93:3 

Total interest income ............. ............................. .. . $183,654 $193,500 -5.1 $62,120 $63,593 -2.3 

Total interest expense .................. ............... ......... . 79,197 94,694 -16.4 26,859 29,554 -9.1 

Net interest income ................... ......................... . 104,457 98,806 5.7 35,261 34,039 3.6 

Provision for loan losses ....................................... 12,869 19,733 -34.8 3,921 6,765 -42.0 

Total noninterest income ................................ .... ... 55,323 49,157 12.5 19,190 16,988 13.0 

Total noninterest expense ......................... ........... . 104,007 96,871 7.4 34,710 33,247 4.4 

Securities gains (losses) ........ ... .. ......................... . 2,704 3,225 -16.2 987 1,288 -23.3 

Applicable income taxes ..... .... .............................. . 14,903 10,829 37.6 5,408 3,913 38.2 

Extraordinary gains, net ...................................... . 1,917 326 487.5 52 93 -43.9 

Net income ............................... .......................... . 32,624 24,081 35.5 11,451 8,481 35.0 

Net charge-offs ...................... ............................. .. . 12,737 18,703 -31.9 3,902 6,667 -41 .5 

Cash dividends ........ ............. ................................ . 14,027 8,611 62.9 5,286 2,864 84.6 

Net operatinQ income ........................................ .. 28,792 21,390 34.6 10,689 7,472 43.0 

FDIC Quarterly Banking Profile 

Third Quarter 1993 3 FDIC-Insured Commercial Banks 
TAB LE Ill-A. First Three Quarters 1993, FDIC-Insured Commercial Banks 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

FIRST THREE QUARTERS Preliminary All than $100 to to than $10 North- South- Mid- South-

(The way it Is ... ) Institutions Million $1 Billion $10 Bill ion Billion east east Central I west west West 

Number of institutions reporting ............ .... 11 ,081 7,931 2,779 319 52 886 1,855 2,431 2,726 1,966 1,217 

Total assets (in billions) ............................. $3,631 .3 $335.6 $679.8 $1 ,047.7 $1 ,568.2 $1 ,372.6 $575.4 $599.1 $245.6 $290 .9 $547 .6 

Total deposits (in billions) .......................... 2,696.3 294.2 576.5 775.5 1,050.1 922.2 442.4 457.3 194.8 240.8 438.8 

Net income (in millions) ............................. 32,624 3,078 6,085 10,126 13,336 11,370 5,186 5,761 2,634 3,154 4,519 

% of unprofitable institutions ..................... 4.7 4.8 4.1 6.0 0.0 8.6 5.1 2.7 1.9 3.0 14.0 

% of institutions with earnings gains ......... 65 .5 62 .3 72.6 80 .3 84.6 76 .9 71 .1 67 .5 57.6 62 .8 66.6 

Performance Ratios (annualized, 3⁄4) 

Yield on earning assets.. .. ......................... 7.82 7.74 7.70 7.57 8 .05 8.37 7.42 7.48 7.57 7.00 7.80 

Cost of funding earning assets .................. 3.37 3.03 2.91 2.78 4.08 4.32 2.91 3.00 3.01 2.61 2.50 

Net interest margin ... .. ............................... 4.45 4.71 4.79 4.80 3.98 4.05 4.51 4.48 4.56 4.39 5.30 

Noninterest income to earning assets ....... 2.35 1.13 1.43 2.58 2.91 2.93 1.70 1.79 2.53 1.76 2.51 

Noninterest expense to earning assets ..... 4.43 3.83 4.01 4.64 4.60 4.67 3.97 3.89 4.29 4.18 5.11 

Net operating income to assets .. ............... 1.08 1.14 1.12 1.22 0.96 0.91 1.16 1.22 1.41 1.18 1.08 

Return on assets ....... .......... ................... ... 1.23 1.24 1.22 1.32 1.16 1.14 1.23 1.31 1.46 1.49 1.12 

Return on equity ........................................ 15.72 12.65 14.26 16.37 16.94 16.02 15.61 16.21 16.60 18.41 12.98 

Net charge-offs to loans and leases.......... 0.83 0.29 0.49 0.94 1.00 1.25 0.41 0.50 0.57 0.25 0.96 

Loan loss provision to net charge-offs. .... 101 .03 136.12 124.96 108.26 89.21 94.70 126.90 127.57 123.79 48 .88 93 .95 

Condition Ratios (3⁄4) 

Lo ss allowance to: 

Loans and leases .................................... 2.57 1.75 1.91 2.67 2.95 3.18 1.97 1.93 2.02 1.95 2.96 

Noncurrent loans and leases .................. 107.38 119.90 110.68 124.14 96.96 94.40 130.55 134.35 136.90 140.86 102.10 

Noncurrent assets plus 

other real estate owned to assets........... 1.95 1.20 1.49 1.74 2.46 2.64 1.33 1.1 1 1.14 1.09 2.65 

Equity capital ratio ....... ... ..................... ...... 7.95 9.93 8.72 8.14 7.06 7.24 8 .09 8.19 8.76 8.33 8.73 

Core capital (leverage) ratio ...................... 7. 66 9.85 8.62 7.86 6.66 7.11 7.73 8.09 8.67 7.94 7.92 

Net loans and leases to deposits.. ....... ..... 75.77 59.73 66.82 79 .23 82.62 79 .63 76.55 76.83 71.56 56.67 78.11 

Growth Rates (year-to-year,%) 

Asse . ts .... ................................... .. ... .. .. ....... 4.3 . . 3.5 8.2 4.9 4.9 5.8 1.0 

Equity . . . capital .............. ......................... ...... 12.2 14.1 12.9 9.2 5.9 17.9 11.4 

Net . interest income........... .. ........ .............. 5.7 5.7 7.4 5.1 5.6 5.7 5.0 

Net . . income...................................•............ 35.5 43.8 26.5 34.0 18.6 39.4 37.3 

Noncurrent assets plus 

other real estate owned........................... -27 .9 -29.7 -24 .3 -23.0 -15.6 -38.9 -26 .7 . . 

Net charge-offs .... ......... ............................. -31 .9 . . . -28 .8 -41 .9 -49.1 -27.5 -65.1 -14.7 

Loan loss provision ... ................................ -34.8 -31 .8 -36 .9 -40.1 -23.6 -81 .3 -32.2 . . . 

PRIOR FIRST THREE QUARTERS 

(The way it was . . . ) 

Number of institutions .......... .. ...........1992 11 ,590 8,435 2,781 326 48 941 1,901 2,559 2,813 2,066 1,310 

··· ··· ····· ··· ············· ······ ········1990 12,411 9,378 2,653 333 47 1,075 1,966 2,748 2,961 2,195 1,466 

······ ······················ ·············1988 13,242 10,469 2,408 328 37 1,084 1,933 2,945 3,130 2,631 1,519 

Total assets (in bil lions) ............... ...... 1992 $3,481 .3 $345.2 $676 .2 $1,035.1 $1 ,424.8 ~1,326.5 $532.0 $571.3 $234.1 $275.1 $542.5 

............................. ... ... .. .... 1990 3,383.6 359.9 638.5 1,048.9 1,336.3 1,326.1 500.7 544.8 215.9 263.4 532.6 

3,094.7 380.4 576.1 998.1 1,140.1 1,243.4 424.1 494.3 207.0 262.4 463.5 ···························· ············· 1988 

Return on assets (%) .... .......... .......... 1992 0.94 1.12 1.04 1.04 0.77 0.81 1.04 1.01 1.27 1.11 0.85 

0.61 0.83 0.86 0.52 0.50 0.24 0.70 0.86 1.05 0.53 1.06 

····· ·· ·· ···· ········· ····· ······ ·"' ····1988 

········ ·· ······· ····· ················"·1990 

0.82 0.74 0.77 0.77 0.92 0.96 1.00 1.07 1.04 -0.83 0.83 

Net charge-offs to loans & leases (%) 

...... .. .. ...............................1992 1.24 0.47 0.69 1.35 1.57 1.74 0.75 1.02 0.83 0.75 1.13 

......................................... 1990 1.35 0.55 0.71 1.36 1.82 1.94 0.79 0.87 0.95 1.33 1.08 

•• ••• ••••••••••• •• ••••••••••••••H••• ••••1 988 0.94 0.75 0.75 1.02 1.02 0.73 0.59 0.69 1.28 2.55 1.15 

Noncurrent assets plus 

OREO to assets (%) ...... ..... ........... 1992 2.83 1.53 1.94 2.51 3.80 3.88 1.90 1.51 1.42 1.89 3.65 

2.67 1.75 1.95 2.50 3.40 3.74 1.77 1.50 1.50 2.90 2.42 

·· ······· ································1988 2.45 2.06 1.84 1.59 3.64 2.38 1.08 1.24 1.68 7.05 2.91 

···· ·· ············· ··· ·········· ····· ·· ··1990 

Equity capital ratio (%) ...................... 1992 7.39 9.55 8.28 7.67 6.23 6.57 7.75 7.87 8.68 7.48 7.91 

..................................... .... 1990 6.45 9.19 7.79 6.53 5.01 5.57 7.17 7.11 8.05 6.67 6.55 

.................................. .. .....1988 6.25 8.92 7.33 6.24 4.81 5.74 7.10 6.83 7.63 5.72 5.88 

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

Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 Third Quarter 1993 
TABLE IV-A. Third Quarter 1993, FDIC-Insured Commercial Banks 

THIRD QUARTER Preliminary 

(The way ft is . .. ) 

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

Total assets (in bil lions) ...... ....................... 

Total deposits (in billions) .......................... 

Net income (in millions) ................... .......... 

% of unprofitable institutions ..................... 

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

Performance Ratios (annualized, 3⁄4) 

Yield on earning assets ............. ................ 

Cost of funding earning assets .................. 

Net interest margin .................................... 

Noninterest income to earning assets ....... 

Noninterest expense to earning assets .... 

Net operating income to assets ................. 

Return on assets ................................. .. .... 

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

Net charge-offs to loans and leases .......... 

Loan loss provision to net charge-offs ...... 

Growth Rates (year-to-year,3⁄4) 

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

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

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

Loan loss provision ................................. .. 

PRIOR THIRD QUARTERS 

(The way it was . .. ) 

Return on assets (%) ...................... .. 1992 

.... ....................... ............. 1990 

........ ..... ......... ............... .. . 1988 

Net charge-offs to loans & leases (%) 

........................................ 1992 

........................................ 1990 

........................... .............1988 

All 

Institutions 

11,081 

$3,631.3 

2,696.3 

11,451 

4.9 

55 .9 

7.82 

3.38 

4.44 

2.41 

4.37 

1.19 

1.27 

16.08 

0.75 

100.50 

3.6 

35.0 

-41 .5 

-42.0 

0.98 

0.42 

0.76 

1.31 

1.15 

0.97 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

than $100 to to than $10 North- South- Mid- SouthMillion $1 Billion $10 Billion Billion east east Central I west west West

7,931 2,779 319 52 886 1,855 2,431 2,726 1,966 1,217 

$335.6 $679.8 $1,047.7 $1 ,568.2 $1,372.6 $575.4 $599.1 $245.6 $290.9 $547.6 

294.2 576.5 775.5 1,050.1 922.2 442.4 457.3 194.8 240.8 438.8 

1,007 2,041 3,666 4,737 4,189 1,768 2,010 926 926 1,630 

5.3 4.0 4.4 0.0 7.7 5.3 3.1 2.5 3.4 14.0 

53.3 60.5 76.5 75.0 65.7 61.7 58.1 48.6 51 .7 58.8 

7.74 7.67 7.53 8.09 8.43 7.44 7.44 7.53 6.89 7.75 

2.97 2.87 2.72 4.17 4.41 2.94 2.96 2.92 2.56 2.43 

4.77 4.81 4.81 3.93 4.02 4.50 4.48 4.61 4.33 5.33 

1.17 1.50 2.64 2.96 3.02 1.74 1.80 2.57 1.78 2.61 

3.92 4.09 4.60 4.44 4.53 3.98 3.87 4.28 4.12 5.13 

1.14 1.16 1.33 1.12 1.11 1.18 1.25 1.49 1.21 1.17 

1.21 1.21 1.41 1.22 1.23 1.24 1.36 1.53 1.28 1.20 

12.22 13.97 17.29 17.44 17.16 15.43 16.60 17.19 15.50 13.74 

0.29 0.50 0.88 0.86 1.06 0.39 0.51 0.47 0.26 0.97 

129.41 105.66 105.21 93.82 99.64 125.90 114.89 128.52 47.03 84.97 

- 3.2 6.0 4.4 4.5 3.7 0.9 

- - 35.0 28 .2 64.0 30.0 19.1 27.1 

. - - -34.3 -39.2 -65 .8 -49.1 -62.5 -27.0 

- - - -34.8 -34.9 -60.3 -39.3 -78.2 -39.4 

1.16 1.04 1.08 0.83 0.94 1.05 0.86 1.22 1.14 0.95 

0.77 0.80 0.36 0.20 -0.12 0.58 0.86 1.02 0.40 0.95 

0.72 0.69 0.68 0.89 0.97 1.02 1.06 1.03 -1 .69 0.95 

0.50 0.77 1.31 1.74 1.62 0.71 1.56 0.99 0.76 1.28 

0.61 0.81 1.45 1.18 1.45 0.95 0.67 0.91 1.52 1.03 

0.83 0.82 0.87 1.18 0.87 0.51 0.58 1.10 2.36 1.27 

FDIC Quarterly Banking Profile 

Third Quarter 1993 5 FDIC-Insured Commercial Banks 
TABLE V-A. Real Estate Loan Performance and Other Real Estate Owned, FDIC-Insured Commercial Banks 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

September 30, 1993 All than $100 to to than $10 North- South- Mid- SouthInstitutions Mil lion $1 Billion $10 Billion Billion east east Central I west west West

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.. ......................... ... 1.53 1.41 1.32 1.59 1.68 2.08 1.22 1.28 0.95 1.19 1.60 

Construction and development ......... .. ............. ..... . 2.00 1.26 1.58 2.56 1.91 3.00 1.08 2.02 1.24 1.13 2.06 

Commercial real estate ... ................ ...................... 1.66 1.20 1.29 1.85 1.97 2.54 1.00 1.25 1.31 1.05 1.80 

Multifamily residential real estate .......................... 1.53 1.07 1.31 1.59 1.76 2.04 0.72 1.47 1.27 1.01 1.87 

1-4 Family residential* ........................................... 1.51 1.68 1.40 1.38 1.62 1.81 1.50 1.31 0.82 1.30 1.62 

Home equity loans .... ............... .............................. 0.87 1.31 0.92 0.81 0.86 1.11 0.60 0.72 0.58 1.40 0.80 

Commercial RE loans not secured by real estate ... 1.46 1.30 1.25 1.61 1.43 2.04 0.57 1.58 0.62 1.82 1.10 

Percent of Loans Noncurrent .. 

All real estate loans .................................. .......... ..... 3.15 1.40 1.86 3.02 4.81 5.09 1.89 1.65 1.58 1.68 4.00 

Construction and development... ........................... 9.76 1.95 4.54 8.78 16.12 15.57 4.38 5.95 3.08 1.98 14.00 

Commercial real estate .... ................... .................. 4.78 1.90 2.58 4.55 8.31 8.22 3.06 2.22 3.31 2.78 5.30 

Multifamily residential real estate .......................... 4.27 1.55 2.33 3.51 7.45 7.65 2.09 1.95 2.72 2.19 5.10 

1-4 Family residential* .......................... ................. 1.30 1.04 1.05 1.23 1.63 1.87 0.94 0.87 0.62 0.90 1.75 

Home equity loans ............................ ..................... 0.65 0.98 0.83 0.58 0.60 0.93 0.47 0.37 0.29 0.51 0.61 

Commercial RE loans not secured by real estate.. . 6.11 2.22 1.71 3.74 7.61 9.58 4.13 2.41 3.43 0.73 4.99 

Percent of Loans Charged-off 

(net, annualized) 

All real estate loans ..... ................... ..... .................... 0.65 0.12 0.26 0.64 1.11 1.24 0.27 0.31 0.26 0.13 0.79 

Construction and development................... ........... 2.53 0.14 0.74 2.47 4.05 4.40 0.84 1.98 0.47 0.13 2.85 

Commercial real estate .......................... .. ..... .. ... ... 0.95 0.18 0.36 0.92 1.81 1.83 0.43 0.39 0.75 0.12 1.10 

Multifamily residential real estate ........ .. ..... ..... ...... 0.91 0.31 0.36 0.60 1.81 2.05 0.34 0.43 0.53 0.13 0.69 

1-4 Family residential* ........... .............. .................. 0.20 0.10 0.14 0.16 0.31 0.40 0.10 0.05 0.05 0.13 0.25 

Home equity loans .......... .. .. ................................... 0.18 0.24 0.19 0.16 0.19 0.21 0.12 0.04 0.04 0.17 0.29 

Commercial RE loans not secured by real estate ... 1.72 0.50 1.35 1.34 1.93 3.27 0.08 3.60 -0.28 0.57 0.41 

Total Loans Outstanding (in billions) 

All real estate loans ......................... ... ... ........ ...... .... $901 .7 $99.4 $225.8 $273.2 $303.2 $263 .1 $184.4 $157.0 $62.0 $62.9 $172.3 

Construction and development .............................. 68.6 6.0 15.6 23 .2 23.8 19.1 15.2 10.5 3.2 4.6 16.1 

Commercial real estate.. .......................... ............. 265.5 26.7 74 .7 89.6 74.4 74.4 56 .2 48 .2 15.8 19.2 51 .6 

Multifamily residential real estate .. .. ...... ................ 28 .8 2.3 8.0 9.5 9.1 8.0 5.4 5.6 2.0 1.8 5.9 

1-4 Family residential* .. ........ .... .. ........................ ... 421.7 51 .0 106.7 121.4 142.6 114.3 91 .8 74 .6 32.2 33 .9 75 .0 

Home equity loans ........................................... ..... . 74.1 2.7 14.1 27 .0 30.4 27.0 12.3 12.5 2.4 0.9 19.0 

Commercial RE loans not secured by real estate... 17.2 0.4 1.4 4.0 11 .4 6.5 2.0 1.8 0.6 0.8 5.7 

Other Real Estate Owned (in millions) 

All other real estate owned ........... ........ .... ... ............ $19,918 $1 ,374 $3,287 $4,640 $10,616 $9,866 $2 ,428 $1,476 $693 $1,234 $4,220 

Construction and development... ........ .... .. ............ . 4,549 191 797 1,651 1,910 1,874 684 366 124 220 1,282 

Commercial real estate .. .. .......... ......... ............ ...... 10,334 644 1,544 2,183 5,963 5,082 1,291 839 405 698 2,019 

Multifamily residential real estate ..... ............... ..... . 1,274 63 173 214 824 893 63 60 42 43 173 

1-4 Family residential. .. ..... .......... .. ... ..... .... ..... .. ..... 2,515 371 693 532 917 1,019 357 173 80 194 692 

Farmland.. .. ............. ... ..... .. .......... .. ..... ................... 268 103 80 46 38 27 34 31 43 79 54 

Other real estate owned in foreign offices ............. 978 0 0 14 964 972 0 6 0 0 0 

*Excludes home equity loans. 

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

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 6 Third Quarter 1993 
SAVINGS INSTITUTION PERFORMANCE - THIRD QUARTER, 1993 

• Coverage Expanded To Include All FDIC-Insured Savings Institutions 

• $1 Trillion Industry Shows First Quarterly Increase In Assets Since 1988 

• FDIC-Insured Savings Institutions Earn $1.2 Billion In the Third Quarter 

• The Third Quarter Represents The Eighth Consecutive Quarter With Positive Earnings 

• Only Two Savings Institutions Fail In The Quarter, Problem List Continues To Shrink 

In this issue we begin expanded coverage of the 

savings institution industry. Previous coverage 

included only BIF-insured savings banks. This 

section now includes all FDIC-insured savings 

institutions except institutions in Resolution Trust 

Corporation (RTC) conservatorship and one 

self-liquidating institution.

1 The savings institution 

industry manages $1 trillion in assets. It includes 

409 BIF-member savings banks with $257 billion in 

assets, 1,703 SAIF-member institutions with $714 

billion in assets regulated by the Office of Thrift 

Supervision (OTS), and 185 SAIF-member savings 

banks with $35 billion in assets regulated by the 

FDIC. 

At the end of September there were 2,297 savings 

institutions. The number of savings institutions, 

which totaled 3,704 institutions at the end of the 

second quarter of 1986, has declined steadily. 

Since that time, over 1,100 institutions have failed 

and a number of others have been absorbed or 

have converted to commercial bank charters. The 

RTC has taken control of 741 savings institutions 

since its inception in 1989. Assets of FDIC-insured 

NUMBER AND ASSETS OF FDIC-INSURED 

SAVINGS INSTITUTIONS, 1984-1993 Number of An et& 

ln1t!Mlon1 $ BIiiions 

3,800 

1,500 3,600 

3,400 

3,200 1.000 

3,000 

2,800 

500 

2,600 

2,400 

2 200 • 1984 1985 1986 1987 1988 1989 1!XIO 1991 1992 '93 O 

savings institutions have declined steadily since 

the fourth quarter of 1988, from $1.6 trillion to $1 

trillion at the end of the third quarter of 1993. The 

decline in assets has leveled off recently, and this 

quarter total assets increased for the first time 

since the fourth quarter of 1988. The $2-billion 

increase in assets this quarter is primarily due to 

growth in securities, including mortgage-backed 

securities. Due in large part to the removal of so 

many undercapitalized institutions, savings 

institutions' average equity capital rose from 4.11 

percent of assets at the end of 1988 to 7.76 

1 New West FS&LA, Stockton, CA with $3.8 billion in total assets. 

FDIC Quarterly Banking Profile 

percent at the end of the third quarter of 1993. 

Equity capital increased by $12 billion while assets 

fell by $600 billion. 

Savings institutions earned $1 .2 billion this quarter 

for an annualized quarterly return on assets of 0.48 

percent, the eighth consecutive quarter of positive 

earnings. Third-quarter earnings were lower than 

the second quarter of 1993 primarily due to losses 

reported by two large institutions in the Northeast 

Region that reorganized and wrote off $500 million 

in goodwill. Favorable interest-rate conditions and 

declining inventories of troubled assets enabled 

most savings institutions to turn a profit -- 94 

percent made money in the third quarter and 95 

percent were profitable for the first nine months. 

Total earnings for the first three quarters of 1993 

were $5.3 billion, for an annualized return on 

assets of 0.72 percent. Eight of the ten largest 

savings institutions are headquartered in California, 

and half of these institutions lost money during the 

first three quarters of 1993 due to depressed 

California real estate markets. Net interest margins 

had been rising for two years through the first 

quarter of 1993 when they reached 3.58 percent. 

They have declined since then, averaging 3.44 

percent during the third quarter. This decline is 

due to the average yield on earning assets falling 

more rapidly than average funding costs in 1993. 

QUARTERLY NET INCOME 

1990-1993 

S llllllona 3------------------

2 

(1) 

(2) D Net Operating Income 

■ SecuMtles and Other Gains, Net 

(3) _1__2.__3......... 4 ....... 1_2_3_4__1__2 _3_4_1_2_3_ 

1990 1991 1992 1993 

The core capital, or leverage ratio for savings 

institutions increased from 6.47 percent at the end 

of the third quarter of 1992 to 7.42 percent at the 

end of the third quarter of 1993. Equity capital 

increased by $4.8 billion during that period, with 

net retained earnings (net income less cash 

dividends) amounting to $4.7 billion for the 

12-month period. The provision for loan losses 

taken in the first three quarters of 1993 of $3.3 

Third Quarter 1993 7 FDIC-Insured Savings Institutions 
billion was $509 million less than the $3.8 billion 

provision taken a year earlier. However, net 

charge-offs of $3 billion in the first three quarters of 

1993 were slightly greater than the net charge-offs 

of $2.9 billion for the same period last year. 

Troubled assets continued to decline for savings 

institutions. Noncurrent assets and other real 

estate owned (OREO) as a percent of assets was 

2.43 percent at the end of the third quarter. This 

ratio fell below 3 percent in the second quarter for 

the first time since 1990, when past due and 

nonaccrual loan amounts were first reported on a 

consistent basis. Real estate problems persist in 

the Northeast and Southwest Regions where 

troubled real estate assets, as a percent of real 

estate loans and OREO, led the nation at 5.31 and 

6.67 percent, respectively. Commercial real estate 

vacancy rates remained especially high in these 

regions. Nationally, noncurrent real estate loans 

fell to 2.27 percent of total real estate loans, from 

2.76 percent a year ago. For savings institutions 

with over $5 billion in assets, noncurrent 

commercial real estate loan rates remained high, 

averaging 6.41 percent. Reserves were $127 

million lower than a year ago, but, due to the drop 

in noncurrent loans, the loan-loss allowance to 

noncurrent loans ratio reached 60 percent, up from 

47 percent at the end of the third quarter of 1992. 

Only two savings institutions failed during the 

quarter, the lowest number of failures in any 

quarter since 1980. One was placed into the RTC 

conservatorship program and the other was 

resolved under the Accelerated Resolution 

Program (ARP), jointly run by RTC and OTS. 

Failures for the first three quarters of 1993 total 

eight, far below the pace for 1992 when 62 

institutions failed in the first three quarters. Of the 

six failures that occurred in the first two quarters of 

this year, one BIF-member savings bank was 

resolved by the FDIC, and the other five SAIF 

members were placed into RTC conservatorships. 

"Problem" savings institutions, as determined by 

OTS and FDIC, showed a steady decline in both 

number and assets. At the end of the third quarter, 

168 savings institutions with $98 billion in assets 

remained on the "Problem List." This is almost half 

the level of a year ago when 318 institutions with 

$223 billion in assets were on the list. 

TROUBLED REAL ESTATE ASSET RATES 

Colorado 

0. 78 

Hawaii 

0 Less than 3% 

0 Between 3% and 6% 

■ Greater than 6% 

SEPTEMBER 30, 1993 

Midwest Central 

North Dakota 

3.46 

South Dakota 

1.31 

Kansas 

1.31 

Southwest 

Northeast 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 Third Quarter 1993 
TABLE 1-B. Selected Indicators, FDIC-Insured Savings Institutions* - --1-99-3~.--' . ~ - ---,-1~99~2~.~. -----19_9_2_____1_9_9_1_____1_99_0_ 

Return on assets(%) ................................................ . 0.72 0.64 0.66 0.07 -0.38 

Return on equity(%)... .................................. .. ......... . 9.54 9.47 9.52 1.20 -6.82 

Core capital (leverage) ratio (%) .............................. . 7.42 6.47 6.77 5.54 4.62 

Noncurrent assets plus 

other real estate owned to assets(%)........ ............. 2.43 3.33 3.07 3.96 3.98 

Net charge-offs to loans(%)................... ................... 0.64 0.56 0.59 0.65 0.60 

Asset growth rate(%)........................................ ........ -4.06 -7.50 -7.45 -11.61 -11.79 

Net operating income growth(%)......... ..................... 14.09 NIM NIM NIM NIM 

Number of institutions...... ...................... ............ .. ..... 2,297 2,443 2,390 2,561 2,815 

Percentage of unprofitable institutions...................... 5.44 7.90 7.66 18.51 30.12 

Number of problem institutions.................................. 168 318 276 410 480 

Assets of problem institutions (in billions)................. $98 $223 $184 $291 $298 

Number of failed/assisted institutions........................ 8 62 81 163 223 

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

TABLE 11-B. Aggregate Condition and Income Data, FDIC-Insured Savings Institutions* 

(dollar figures In ml/lions) Preliminary 

3rd Qtr 2nd Qtr 3rd Qtr %Change 

1993 1993 1992 92:3-93:3 

Number of institutions reporting .......... .. ....................... ........... . 2,297 2,313 2,443 -6.0 

Total employees (full-time equivalent) ................ .................... . 285,529 283,700 293,158 -2.6 

CONDITION DATA 

Total assets ....................... ..................................................... . $1,005,912 $1,003,957 $1,048,512 -4.1 

Loans secured by real estate ............. .............. ................ . 604,445 604,928 632,626 -4.5 

1-4 Family residential.. .. ............................... ... ............... . 463,060 464,329 479,770 -3.5 

Multifamily residential property ....................................... . 64,717 64,1 35 67,222 -3.7 

Commercial real estate ................................................... . 57,713 58,1 40 64,368 -10.3 

Construction development and land .................. ............. . 18,955 18,324 21,267 -10 .9 

Commercial & industrial loans .......................................... . 10,211 10,133 18,385 -44.5 

Loans to individuals .......................................................... . 36,794 36,845 37,058 -0.7 

Other loans & leases .......................................... ... ........... . 1,330 1,299 1,372 -3.1 

Less: Unearned income & contra accounts ...................... . 9,493 9,121 9,786 -3.0 

Total loans & leases ........................................................... . 643,288 644,084 679,656 -5.4 

Less: Reserve for losses ........... ......................................... . 8,851 8,702 8,978 -1.4 

Net loans & leases......................................... .... .. ................ . . 634,437 635,382 670,678 -5.4 

Investment securities ............................................................ . 268,527 264,213 259,634 3.4 

Other real estate owned ....................................................... . 9,780 11,803 15,974 -38.8 

Goodwill and other intangibles ............................................. . 6,067 6,615 8,461 -28.3 

All other assets ..................................................................... . 87,101 85,944 93,765 -7.1 

Total liabilities and capital. ...................................................... . 1,005,912 1,003,957 1,048,512 -4.1 

Deposits ............................................................... ................. . 780,714 787,968 849,455 -8.1 

Other borrowed funds ........................................................... . 132,546 126,237 111,053 19.4 

Subordinated debt............................................................... . 2,699 2,679 2,912 -7.3 

All other liabilities ................................................. ................. . 11,894 11 ,178 11,817 0.7 

Equity capital. ....................................................................... . 78,058 75,895 73,274 6.5 

Loans and leases 30-89 days past due....................... ............ 10,430 10,329 13,386 -22.1 

Noncurrent loans and leases............... ... ... ............. ................. 14,685 14,609 18,928 -22.4 

Restructured loans and leases................................................ 11 ,837 13,064 15,347 -22.9 

Direct and indirect investments in real estate.......................... 871 1,046 1,498 -41.9 

Mortgage-backed securities.................................................... 189,786 187,760 184,730 2.7 

Earning assets......................... ............ .................................... 931,844 929,041 962,828 -3.2 

FHLB Advances (TFR filers only)............................................ 74,956 71,448 62,896 19.2 

Unused loan commitments...................................................... 95,948 87,218 70,974 35.2 

Preliminary Preliminary 

First Three First Three 3rd Qtr 3rd Qtr %Change 

INCOME DATA t--- Q---'-tr~ _ s_19_9_ _ 3 _ Q~trs_19_92 _ _ _ _ __~1 99_3___ 199-'--"2=------=-9"'-2:..:.:3----'-9..::. 3 0/4_.C_ha_ng,,,__e _ _ ~----'--=-- 3-"'--: 

Total interest income............................................. $51,064 $60,818 -16.0 $16,748 $19,530 -14.2 

Total interest expense................................. .......... 26,875 36,787 -26.9 8,752 11,353 -22.9 

Net interest income............................................. 24,189 24,031 0.7 7,996 8,177 -2.2 

Provision for loan losses........................ ............... 3,322 3,831 -13.3 1,072 1,412 -24.1 

Total noninterest income...... ................................. 5,843 5,875 -0.6 1,947 2,087 -6.7 

Total noninterest expense........... ....... .. ................. 18,886 18,817 0.4 6,541 6,510 0.5 

Securities gains (losses). ...................................... 347 620 -44.1 92 250 -63.1 

Applicable income taxes.................. ...................... 2,909 3,024 -3.8 944 1,049 -10.0 

Extraordinary gains, net ................. ... .... ........ ....... 57 165 -65.6 (286) (9) NIM 

Net income.......................................................... 5,318 5,019 6.0 1,194 1,536 -22.3 

Net charge-offs...................................................... 3,041 2,883 5.5 938 955 -1.7 

Cash dividends..... ........... ................................... .. . 1,460 1,394 4.7 414 530 -21.9 

Net operating income.......................................... 5,007 4,388 14.1 1,405 1,357 3.5 

*Excludes institutions in Resolution Trust Corporation conservatorship and one self-liquidating institution. NIM - Not meaningful 

FDIC Quarterly Banking Profile 

Third Quarter 1993 9 FDIC-Insured Savings Institutions 
TABLE 111-B. First Three Quarters 1993, FDIC-Insured Savings Institutions* 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

FIRST THREE QUARTERS Preliminary All than$100 to to than $5 North- South- Mid- South-

(The way it is . . . ) Institutions Million $1 Billion $5 Billion Billion east east Central I west west West 

Number of institutions reporting .. .............. 2,297 1,061 1,063 146 27 835 378 575 169 149 191 

Total assets (in billions} ............................. $1 ,005.9 $53.9 $307 .7 $311.5 $332.8 $333.6 $90.1 $151.3 $50.7 $58.9 $321.3 

Total deposits (in billions} .......................... 780.7 47.1 258.2 235.8 239.6 277.2 72.1 119.2 38.4 38.1 235.7 

Net income (in millions} ............................. 5,318.5 423.7 2,269.7 1,363.2 1,261 .9 1,491.0 610.6 1,146.3 383.3 720.6 966.8 

% of unprofitable institutions ............ ......... 5.4 4.9 4.9 11 .6 14.8 6.2 6.9 2.4 1.2 3.4 13.6 

% of institutions with earnings gains .. ....... 71.4 68.0 75.9 66.4 55.6 79.4 69.3 70.8 68.0 60.4 54.5 

Performance Ratios (annualized, %} 

Yield on earning assets ............................. 7.46 7.72 7.61 7.35 7.38 7.44 7.53 7.64 7.48 6.90 7.47 

Cost of funding earning assets ... ............... 3.93 3.87 3.85 3.87 4.06 3.62 4.03 4.06 4.23 3.95 4.10 

Net interest margin .............................. ...... 3.53 3.85 3.76 3.48 3.31 3.82 3.50 3.58 3.25 2.95 3.36 

Noninterest income to earning assets ....... 0.85 0.73 0.90 0.93 0.75 0.69 0.93 0.81 0.83 1.92 0.83 

Noninterest expense to earning assets ..... 2.76 2.75 2.86 2.86 2.57 2.97 2.74 2.54 2.39 2.76 2.70 

Net operating income to assets................. 0.68 0.99 0.90 0.65 0.44 0.59 0.86 1.03 0.98 1.48 0.35 

Return on assets ....................... ................ 0.72 1.05 1.00 0.59 0.52 0.60 0.92 1.03 1.03 1.64 0.41 

Return on equity .................................. ...... 9.54 11.98 12.14 8.01 7.65 7.81 12.18 12.54 13.92 24.42 5.75 

Net charge-offs to loans and leases .......... 0.64 0.16 0.27 0.55 1.13 0.67 0.24 0.11 0.15 0.32 1.03 

Loan loss provision to net charge-offs ...... 109.23 161 .81 149.21 108.57 99.98 92 .93 139.59 229.86 123.78 97.34 111.81 

Condition Ratios (%} 

Loss allowance to: 

Loans and leases .................................... 1.38 0.91 1.21 1.55 1.45 1.70 1.18 0.84 0.83 1.02 1.47 

Noncurrent loans and leases .. ...............• 60.27 53.16 64.89 70.60 51 .85 52 .05 82.69 99.44 96.73 102.07 57 .60 

Noncurrent assets plus 

other real estate owned to assets ........... 2.43 1.61 2.00 2.56 2.85 3.11 1.67 0.78 0.90 2.77 2.91 

Noncurrent RE loans to RE loans ............. 2.27 1.65 1.82 2.18 2.82 3.28 1.34 0.78 0.86 1.03 2.58 

Equity capital ratio ....... ......... ..................... 7.76 9.19 8.54 7.48 7.07 7.90 8.04 8.45 7.70 6.93 7.37 

Core capital (leverage} ratio ...................... 7.42 9.09 8.37 7.12 6.56 7.75 7.78 8.20 7.31 6.51 6.81 

Gross real estate assets to gross assets.. 78.58 72.83 75.11 77.98 83.30 74 .09 77.41 80 .02 79.46 76.28 83.1 7 

Gross 1-4 family mortgages to gr. assets . 45.21 51.04 44 .97 38.70 50.58 40.82 47.01 47 .59 45.20 28.96 51.15 

Net loans and leases to deposits ............ .. 81 .26 74.83 74.55 76.86 94 .11 70.47 79.08 77 .59 78.13 67.65 99.20 

Growth Rates (year-to-year,%) 

Assets ....................................................... -4.1 - -6.6 -19.1 0.1 3.2 -3.9 0.9 

Equity capital ............................................ . 6.5 - - 5.8 -10.1 10.4 17.3 8.0 9.6 

Net interest income...... ............................. 0.7 - - 1.1 -16.7 6.7 8.4 11 .5 0.7 

Net income ........ .......................................• 6.0 - - 14.4 -7.1 16.0 5.7 5.8 -5.9 

Noncurrent assets plus 

other real estate owned........... ................ -29.9 - - -31 .0 -50 .1 -30 .7 -27.9 -39.1 -21.3 

Net charge-offs ......... .............. ............ ....... 5.5 - - - - -29.4 -51.7 -44.7 -23 .2 17.2 73.1 

Loan loss provision ................................... -13.3 - - - -32.6 -56.8 -23.2 -36.8 -45 .5 14.7 

PRIOR FIRST THREE QUARTERS 

(The way it was ... ) 

Number of institutions .......................1992 2,443 1,129 1,123 161 30 867 427 601 183 157 208 

2,606 1,219 1,168 190 29 919 473 633 189 166 226 

........................... ............ 1990 2,867 1,345 1,275 210 37 996 529 673 208 202 259 

·······································1991 

Total assets (in billions) ..................... 1992 $1 ,048.5 $56.5 $326 .6 $331.0 $334.4 $357 .1 $111.4 $151 .2 $49.2 $61.3 $318.3 

1,133.6 60 .6 336.2 392.5 344.3 377.7 129.7 160.1 50.0 67.1 348.9 ········ ····· ············· ··· ··········1991 

············· ···· ····· ········· ········1990 1,299.8 65 .8 372.8 437.0 424.3 419.7 159.8 176.4 60.3 81.6 402.0 

Return on assets (%) ....... ................. 1992 0.64 0.85 0.79 0.57 0.53 0.49 0.78 0.88 0.98 1.50 0.43 

....... , ............................,.. 1991 0.05 0.34 0.18 0.04 -0.11 -0.35 0.01 0.52 0.50 0.42 0.15 

.,.. , ............ ........ . , .... ,, ..... ,1990 -0.24 0.11 -0.09 -0.45 -0.21 -0.56 -0.51 0.26 -0.04 -0.41 -0,01 

Net charge-offs to loans & leases (%} 

,., .......... ,,,, , ... ,,,,,, .. ,, ........ 1992 0.56 0.22 0.36 0.65 0.73 0.86 0.38 0.20 0.1 9 0.27 0.56 

................... ,,, ........... ,,.... 1991 0.63 0.28 0.49 0.77 0.68 1.05 0.60 0.20 0.25 0.42 0.46 

........... , .................... , ...... 1990 0.52 0.22 0.46 0.65 0.49 0.72 0.56 0.25 0.48 0.88 0.37 

Noncurrent assets plus 

OREO to assets (%) ............... 1992 3.33 1.90 2.60 3.48 4.14 4.21 2.71 1.12 1.29 4.37 3.73 

............ ............ , .. , ........... 1991 3.93 2.34 3.21 4.63 4.11 5.13 3.65 1.40 1.83 8.47 3.31 

... ,,,,,.,, ............. ,,,,, .. , ....... 1990 3.71 2.33 3.26 4.66 3.34 4.30 3.78 1.34 2.50 14.1 4 2.17 

Equity capital ratio {%) ................ ...... 1992 6.99 8.33 7.45 6.81 6.49 6.98 7.24 7.66 6.77 6.16 6.79 

.. ,, ......... ,. ,, ,.,,, ,,, ..............1991 6.08 7.71 6.69 5.61 5.73 6.28 5.80 6.66 5.23 3.89 6.24 

,., ... , ......... , .... , ......... ...... .. 1990 5.30 7.16 6.39 4.74 4.63 6.33 4.77 6.13 3.40 2.26 4.97 

*Excludes 1nst1tut1ons in Resolution Trust Corporation conservatorsh1p and one self-liqu1dat1ng 1nst1tut1on. 

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

Rhode Island, Vermont, U.S. Virgin Islands ' ' 

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

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

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

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Third Quarter 1993 
TABLE IV-B. Third Quarter 1993, FDIC-Insured Savings Institutions* 

Asset Size Distribution Geograph ic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

THIRD QUARTER Preliminary 

(The way It Is . .. ) 

All 

Institutions 

than $100 

Million 

to 

$1 Billion 

to 

$5 Billion 

than $5 

Billion 

Northeast Southeast Central I Midwest 

Southwest West 

Number of institutions reporting ................ 2,297 1,061 1,063 146 27 835 378 575 169 149 191 

Total assets (in billions) ............................. $1,005.9 $53.9 $307.7 $311.5 $332.8 $333.6 $90.1 $151.3 $50.7 $58.9 $321.3 

Total deposits (in billions) .......................... 780.7 47 .1 258.2 235.8 239.6 277.2 72.1 119.2 38.4 38 .1 235.7 

Net income (in millions) ............................. 1,194 134 743 (123) 439 10 218 349 136 166 314 

% of unprofitable institutions ..... ........... ..... 5.7 6.0 4.5 11.0 14.8 5.5 6.9 3.5 3.0 5.4 14.1 

% of institutions with earnings gains ......... 57.3 54.9 59.4 57.5 70.4 62.4 55.8 56.9 55.6 45 .6 49 .7 

Performance Ratios (annualized, 3⁄4) 

Yield on earning assets ............................ . 7.21 7.56 7.42 7.11 7.03 7.19 7.31 7.43 7.31 6.86 7.12 

Cost of funding earning assets .................. 3.77 3.74 3.72 3.71 3.86 3.47 3.89 3.91 4.11 3.89 3.89 

Net interest margin ........................... ......... 3.44 3.82 3.70 3.40 3.17 3.72 3.42 3.52 3.20 2.97 3.23 

Noninterest income to earning assets ....... 0.84 0.75 0.95 0.84 0.75 0.69 1.00 0.84 0.75 1.33 0.87 

Noninterest expense to earning assets .... 2.81 2.82 2.87 3. 15 2.44 3.22 2.70 2.53 2.35 2.81 2.63 

Net operating income to assets ... .... ...... .... 0.56 0.93 0.89 0.24 0.49 0.29 0.90 1.03 0.94 1.16 0.35 

Return on assets ....... ................................ 0.48 1.00 0.97 -0.16 0.53 0.01 0.98 0.93 1.08 1.14 0.39 

Return on equity ........................................ 6.20 11 .03 11.52 -2.11 7.63 0.16 12.45 11.07 14.18 16.57 5.41 

Net charge-offs to loans and leases .......... 0.58 0.15 0.27 0.49 0.99 0.60 0.23 0.09 0.16 0.30 0.93 

Loan loss provision to net charge-offs ...... 114.23 162.27 151 .53 107.48 107.25 93.31 147.63 230.93 115.42 74.21 120.47 

Growth Rates (year-to-year,3⁄4) 

Net interest income ...... ............................. -2.2 - -4.8 -20.3 3.3 8.3 14 .7 1.1 

Net income ................................................ -22.3 - - -97.3 -0.2 4.4 8.3 -30.6 35 .5 

Net charge-offs .......................................... -1 .7 - - -39 .2 -43.5 -37 .1 2.0 58.8 58.2 

Loan loss provision ................................... -24.1 - - - -45.7 -60.0 -46.6 -28.8 -56.2 4.9 

PRIOR THIRD QUARTERS 

(The way It was . .. ) 

Return on assets (%) ........................1992 0.59 0.93 0.86 0.32 0.53 0.43 0.78 0.89 1.02 1.56 0.29 

··· ·································· ··1991 -0.06 0.41 0.05 -0.06 -0.26 -0.49 0.02 0.53 0.33 0.33 -0.03 

··················· ····················1990 -0.51 0.03 -0.33 -0.75 -0.51 -0.92 -0.86 0.16 -0.20 -0.43 -0.30 

Net charge-offs to loans&leases (%) 

....................................... 1992 0.56 0.19 0.33 0.68 0.74 0.89 0.32 0.14 0.16 0.19 0.58 

...... ................................. 1991 0.74 0.29 0.54 0.87 0.88 1.26 0.63 0.22 0.19 0.31 0.60 

....................................... 1990 0.60 0.26 0.57 0.71 0.58 0.90 0.75 0.23 0.31 0.39 0.45 

•Excludes 1nst1tut1ons in Resolution Trust Corporation conservatorsh1p and one self-llqu1dat1ng 1nst1tut1on. 

FDIC Quarterly Banking Profile 

Third Quarter 1993 11 FDIC-Insured Savings Institutions 
TABLE V-8. Real Estate Loan Performance and Other Real Estate Owned, FDIC-Insured Savings Institutions* 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

September 30, 1993 All 

Institutions 

than $100 

Million $1 

to 

Billion 

to 

$5 Billion 

than $5 

Billion 

Northeast Southeast Central I Midwest 

Southwest West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.. ............................ 

Construction, development and land ........ ............. 

Commercial real estate ......................................... 

Multifamily residential real estate ... ............ ........... 

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

1.57 

1.57 

1.84 

1.39 

1.56 

2.28 

1.26 

1.82 

1.69 

2.41 

1.57 

1.81 

1.95 

1.50 

1.51 

1.55 

1.34 

2.07 

1.42 

1.50 

1.48 

1.41 

1.42 

1.31 

1.51 

2.02 

2.91 

2.30 

1.96 

1.96 

1.59 

1.06 

2.35 

1.05 

1.57 

1.18 

1.02 

1.17 

0.94 

1.22 

1.34 

1.01 

2.30 

2.00 

1.22 

1.35 

0.52 

1.12 

0.63 

1.52 

1.41 

1.63 

1.35 

1.27 

1.44 

Percent of Loans Noncurrent** 

All real estate loans .......... .......... ......... ..... ..... .......... 

Construction, development and land ...... ......... ...... 

Commercial real estate .................. ........... ............ 

Multifamily residential real estate ............. .... ... ..... . 

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

2.27 

5.35 

4.78 

4.11 

1.58 

1.65 

1.88 

3.44 

4.03 

1.34 

1.82 

4.19 

4.01 

3.74 

1.16 

2.18 

8.16 

4.44 

4.04 

1.27 

2.82 

5.51 

6.41 

4.33 

2.1 9 

3.28 

10.22 

5.79 

6.30 

2.31 

1.34 

3.56 

3.15 

2.34 

0.86 

0.78 

1.31 

2.10 

1.55 

0.59 

0.86 

1.20 

3.47 

3.08 

0.47 

1.03 

1.19 

1.45 

2.24 

0.87 

2.58 

7.72 

5.24 

3.92 

1.83 

Percent of Loans Charged-off 

(net, annualized) 

All real estate loans ..... ............. .. ..... .............. .. ........ 

Construction, development and land ................. .... 

Commercial real estate ......................................... 

Multifamily residential real estate .......................... 

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

0.55 

1.05 

1.37 

0.81 

0.39 

0.12 

0.20 

0.34 

0.28 

0.09 

0.21 

0.48 

0.64 

0.51 

0.11 

0.40 

2.20 

1.18 

0.72 

0.14 

1.04 

0.94 

2.73 

1.02 

0.88 

0.56 

2.63 

1.43 

0.64 

0.33 

0.14 

0.40 

0.42 

0.88 

0.05 

0.05 

0.15 

0.25 

0.23 

0.02 

0.12 

0.09 

0.71 

0.09 

0.07 

0.18 

0.95 

-0.01 

0.13 

0.14 

0.94 

0.80 

2.08 

1.03 

0.78 

Total Loans Outstanding (in billions) 

All real estate loans ................ ... .......... .................... 

Construction, development and land ........ .. ........... 

Commercial real estate ............................ ............. 

Multifamily residential real estate .......................... 

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

$604.4 

19.0 

57 .7 

64 .7 

463.1 

$33.8 

1.6 

2.8 

1.3 

28.1 

$184.8 

9.4 

20.7 

13.5 

141.2 

$165.9 

5.7 

18.3 

19.2 

122.6 

$219 .9 

2.3 

15.8 

30.6 

171.1 

$180.7 

4.6 

23.2 

14.8 

138.1 

$54.6 

3.9 

5.5 

1.8 

43.4 

$89.4 

3.7 

5.6 

6.7 

73.4 

$27.6 

0.8 

2.1 

1.5 

23.3 

$22.7 

1.8 

1.7 

1.5 

17.7 

$229.4 

4.3 

19.6 

38 .4 

167.2 

Other Real Estate Owned (in millions)*** 

All other real estate owned ...................................... 

Construction, development and land ............. ..... ... 

Commercial real estate ....................... ............... ... 

Multifamily residential real estate ........ .. .. ...... ........ 

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

$9,780 

2,554 

3,016 

1,992 

3,293 

$260 

43 

69 

36 

140 

$2,519 

722 

938 

381 

742 

$3,928 

1,557 

1,126 

892 

694 

$3,072 

231 

884 

683 

1,717 

$3,872 

1,109 

1,186 

588 

1,235 

$680 

241 

264 

72 

193 

$391 

44 

230 

57 

118 

$199 

27 

109 

49 

51 

$1,370 

693 

343 

317 

120 

$3,267 

439 

885 

908 

1,575 

Troubled Real Estate Asset Rates**** 

(% of total RE assets) 

All real estate loans ............................................. .... 3.83 2.40 3.14 4.44 4.16 5.31 2.55 1.22 1.57 6.67 

Construction, development and land ..................... 16.59 4.46 11 .04 27 .94 14.11 27 .70 9.23 2.49 4.57 28 .56 

Commercial real estate ............................ .. ........... 9.51 5.73 8.17 9.97 11 .36 10.38 7.56 5.95 8.17 17.85 

Multifamily residential real estate .......... .......... ...... 6.98 6.55 6.38 8.29 6.42 9.89 6.04 2.38 6.25 19.26 

1-4 Family residential. ........................................... 2.27 1.83 1.68 1.82 3.16 3.17 1.30 0.75 0.69 1.54 

*Excludes 1nst1tut1ons 1n Resolution Trust Corporation conservatorsh1p and one self-hqu1datlng 1nst1tulion. 

**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 other real estate owned" is shown net of valuation allowances. The individual categories of OREO do not net out valuation allowances of TFR filers. 

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

3.95 

16.34 

9.34 

6.14 

2.75 

Yield(%) 

10% 

Yield on 30-Year TresBond 

8 

6 Spread ~ 

4 l 

2 Yield on 3-Month Treasury Bill 

0 

1g9g 1uuo 1gg1 1gg2 1gg2 1gg2 1gg2 1U93 1U93 1U93 

40 40 40 10 20 30 40 10 20 30 

Quarterly Average Yield : 

1989 1990 

~ ~ 30-Year 

Treasury Bond 7.93 8.55 

3-Month 

Treasury Bill ~ U9 

Spread 0.28 1.56 

1991 

~ 

7.85 

~ 

3.31 

1992 

10. 

7.80 

U1 

3.89 

1992 

2Q. 

7.90 

~ 

4.22 

1992 

:iQ 

7.44 

Ma 

4.36 

1992 

~ 

7.53 

MI 

4.46 

1993 

10. 

7.08 

2.-9§ 

4.12 

1993 

2Q. 

6.86 

2..9Z 

3.89 

1993 

:iQ 

6.32 

3...QQ 

3.32 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 12 Third Quarter 1993 
ALL FDIC-INSURED INSTITUTIONS BY INSURANCE FUND 

• Total Assets Of All FDIC-Insured Institutions Are $4.64 Trillion, Up 2.4 

Percent Over 12 Months; Estimated Insured Deposits Fa/12.0 Percent To 

$2.57 Trillion. 

• BIF-Member Assets Grow 4.9 Percent Over 12 Months To $3.88 Trillion; 

Estimated BIF-lnsured Deposits Decrease 1.1 Percent To $1.89 Trillion. 

• SAIF-Member Assets Decrease 9.0 Percent Over 12 Months To $760 

Billion; Estimated SAIF-lnsured Deposits Drop 4.5 Percent To $683 Billion. 

This is a new section for the Quarterly Banking Profile. It 

presents aggregate results for all FDIC-insured 

institutions and by insurance fund membership (BIF and 

SAIF). 1 These tables differ from the commercial bank and 

savings institution tables in that fund membership is not 

strictly determined by charter type. Readers should be 

aware that results and trends by insurance fund 

membership are influenced by cross-fund mergers and 

acquisitions. Notably, the transfer of a single large 

institution from SAIF membership to BIF membership 

explains a significant portion of the year-to-year 

decreases in the SAIF aggregate tables.2 

In 1989, Congress created the Bank Insurance Fund 

(BIF) and the Savings Association Insurance Fund (SAIF) 

and placed them under the FDIC. Initially, BIF (which 

succeeded the Federal Deposit Insurance Fund) insured 

the deposits of commercial banks, state-chartered 

savings banks and a few federally chartered savings 

banks, while SAi F (which succeeded the Federal Savings 

and Loan Insurance Fund) insured the deposits of stateand federally chartered savings associations and most 

federally chartered savings banks. Under limited 

conditions, institutions are permitted to switch from one 

insurance fund to the other -- with or without a change in 

charter type -- but the required exit and entrance fees 

have all but precluded fund membership crossovers. 

Alternatively, institutions can change charter types -- and 

primary supervisors -- without switching insurance funds. 

As a result, the roles of insurer and primary federal 

supervisor are no longer determined strictly by charter 

type. On September 30, 1993, there were 16 BIF-member 

federal savings banks (with total assets of $71 billion) that 

were supervised by the Office of Thrift Supervision (OTS), 

185 SAIF-member state-chartered savings banks (total 

assets $35 billion) that were supervised by FDIC and 68 

SAIF-membercommercial banks (total assets $11 billion) 

that were supervised by one of the three federal bank 

regulatory agencies. These SAIF-member commercial 

and state-chartered savings banks are sometimes 

referred to as "Sassers" (after a sponsor of the enabling 

legislation). 

Because of acquisitions across insurance fund lines, 

portions of the deposits in a single institution can be 

insured by different funds. These institutions, sometimes 

referred to as "Oakars" (after a sponsor of the enabling 

legislation), are allocated in the accompanying tables 

according to their fund membership, so acquisitions by 

1 Excluding RTC conservatorships, insured U.S. branche.s of foreign 

banks and one self-liquidating savings institution. 

2 Home Savings of America, FSB, Irwindale, CA (total assets $50.2 

billion). is a predominantly SAIF-insured institution which became a BIF 

member by retaining the charter of The Bowery Savings Bank, New York, 

NY (total assets $5.7 billion at year-end 1992), a BIF-member bank that 

was merged into Home Savings in February 1993. 

BIF-member institutions involving SAIF-insured deposits 

are reflected in the BIF aggregates, and vice versa. On 

September 30, 505 BIF-member institutions held an 

estimated $136 billion in SA IF-insured deposits, 3 while 24 

SAIF-member institutions held an estimated $3.6 billion 

in BIF-insured deposits.4 Institutions with Oakar deposits 

pay assessment premiums for these deposits to the 

appropriate insurance fund. One effect of Oakar deposits 

is that SAIF-insured deposits fell just 4.5 percent since 

September 1992 despite a 9.0 percent fall in 

SAIF-member assets, because SAIF retained insurance 

coverage of deposits acquired by BIF members. 

In aggregate, the 13,378 FDIC-insured institutions had 

2.4 percent growth in total assets from a year ago despite 

a slight (0.5 percent) decline in total deposits. Total loans 

were up 0.9 percent, as growth in residential mortgage 

loans, commercial real estate loans and consumer loans 

more than offset declines in commercial and industrial 

loans and loans for construction and development. 

Substantial improvement in asset quality was evidenced 

by the provision for loan losses ( down 39 percent from the 

third quarter a year ago), noncurrent loans (down 27 

percent) and other real estate owned (down 32 percent). 

All five institutions that were critically undercapitalized on 

September 30 have been resolved, some with and some 

without cost to the FDIC. The number of "problem" 

institutions declined 46 percent from their level in 

September 1992. 

BIF-member bank failures, of which there were 36 during 

the first nine months of 1993, are funded by assessment 

premiums and interest on investments in U.S. Treasury 

obligations. SAIF-member institution failures, of which 

there were nine during the three quarters ended 

September 30, are resolved by the Resolution Trust 

Corporation with public funding. The RTC's authority to 

resolve failed institutions expired September 30, 1993, 

but has been extended at least through 1994 by 

legislation passed by Congress. SAIF-member 

assessment premiums are used to pay interest on 

obligations issued to cover failures in recent years and to 

build SAIF toward its statutory minimum net worth. The 

RTC legislation contains provisions for funding SAIF 

losses, if necessary, and the FDIC has authority for 

emergency borrowing from the U.S. Treasury and the 

Federal Financing Bank to supplement both SAi F and 

BIF. 

3 Including nearly $34 billion at Home Savings of America. 

4 Total insured deposits for either fund can be approximated by taking the 

estimated insured deposits for its members, subtracting the Oakar 

deposits in its members and adding the Oakar deposits in the other fund's 

members (see Tables II-D and II-E}. 

FDIC Quarterly Banking Profile 

Third Quarter 1993 13 All FDIC-Insured Institutions 
TABLE 1-C. Selected Indicators, All FDIC-Insured Institutions* 

(dollar figures in millions) 1-----1_9_9_3•_•_ ___1_9_92_•_• _ _ ___1_9_92_____19_9_1_ ____1_9_9_0_ 

Number of institutions reporting ............................... . 13,378 14,033 13,852 14,482 15,158 

Total assets.. .......................... ........................ ........ .. . $4,637,224 $4,529,838 $4,535,642 $4,543,612 $4,648,644 

Total deposits .. .. ...................... .......... .. ..................... . 3,477,033 3,494,917 3,526,944 3,594,273 3,637,266 

Number of problem institutions ............ ..................... . 664 1,227 1,063 1,426 1,492 

Assets of problem institutions (in billions) ................ . $379 $711 $592 $819 $640 

Number of failed/assisted institutions... .................... . 45 126 181 271 382 

Assets of failed/assisted institutions (in billions) ....... . $9 $54 $88 $142 $145 

..As of September 30, 1993. 

TABLE 11-C. Aggregate Condition and Income Data, All FDIC-Insured Institutions* 

(dollar figures in millions) Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter % Change 

1993 1993 1992 92:3-93 :3 

Number of institutions reporting .. ........ ...... ........... ... ... .. .... ....... . 13,378 13,512 14,033 -4.7 

Total employees (full-time equivalent) ............ ............. .... ... .... . 1,762,377 1,760,242 1,767,623 -0.3 

CONDITTON DA TA 

Total assets ............................ ....................... ...... .......... ......... . $4,637,224 $4,573 ,266 $4,529,838 2.4 

Loans secured by real estate .... .... ........ ........... ............ .. .. . 1,506,113 1,493,373 1,497,570 0.6 

1-4 Family residential .............................................. ... .. . 958,886 949,025 934,501 2.6 

Home equity loans .................................................... .. . 92,886 93,577 94,349 -1 .6 

Multifamily residential property ... .. ......... .. ............... ...... . 93 ,549 92,420 93,728 -0 .2 

Commercial real estate.. ............................... .. ....... ....... . 323,136 320,531 317,316 1.8 

Construction development and land ..... ....... .. ................ 87,598 88,531 108,944 -19.6 

Other real estate loans.. ........... ......................... ........... . 42,944 42,865 43,081 -0.3 

Commercial & industrial loans .... ... ....... .. .......... ..... .. ...... ... . 539,940 545,166 557,783 -3.2 

Loans to individuals... .... ... ......... ... .......... ....... .. .. ...... ....... .. . 439,926 426,883 418,178 5.2 

Credit cards & related plans ..... ............... ......... .............. . 151,965 147,302 137,611 10.4 

Other loans & leases ............. ..................... ............. .. .. ..... . 270,882 262,844 261,743 3.5 

Less : Unearned income & contra accounts... ............... .... . 16,656 16,843 19,330 -13.8 

Total loans & leases .......... ....... ...... .... ....... .... ......... ..... ....... . 2,740,204 2,711 ,421 2,715,944 0.9 

Less : Reserve for losses ............................ .. ......... ... .......... . 62,746 62,794 64,284 -2.4 

Net loans & leases .... .......... ....................... ... .......... ...... ... ..... . 2,677,457 2,648,628 2,651,660 1.0 

Investment securities ................... .................... ............ ..... ... . 1,089,476 1,074,078 1,018,462 7.0 

Other real estate owned .. ... ..... ... .... ......... ..... ......... ....... ........ . 29,697 34,403 43,982 -32.5 

Goodwill and other intangibles ..... ....................... ... ..... .. ... ... . . 22,882 23 ,351 23 ,084 -0 .9 

All other assets .......................... ........................................... . 817,711 792,807 792,649 3.2 

Total liabilities and capital. .... .................................................. . 4,637,224 4,573,266 4,529,838 2.4 

Deposits ........................................ ............... ..... .. .... ........ ...... . 3,477,033 3,468,405 3,494,917 -0 .5 

Other borrowed funds ........ ......... ........................................... 616,744 572,338 533,770 15.5 

Subordinated debt. .... ... ................ ............. ..... ..... .......... ....... . 39,699 39,633 33,180 19.6 

All other liabilities ......... ......... .. ....... ....... .. .. .. .. .. ..... .. ...... ......... . 137,075 135,428 137,568 -0 .4 

Equity capital. .. .... .. .. ..... ... ......... ....... ......................... .. .......... . 366,674 357,463 330,403 11 .0 

Loans and leases 30-89 days past due .................... .. ............ . 39,165 39,710 47,465 -17.5 

Noncurrent loans and leases .................................... ....... ..... .. . 64,878 68,787 88,310 -26.5 

Restructured loans and leases ........... ........ ................ ... .... ..... . 23,273 24,297 26,202 -11.2 

Direct and indirect investments in real estate ......................... . 1,256 1,507 2,085 -39.7 

Mortgage-backed securities ........................ ... ....... ..... ..... .... .... 528,905 522,858 486,579 8.7 

Earning assets.. ..... ........ ... ... ... ..... ....... .......... ...... ... .. .. .. .. .. ....... . 4,138,346 4,086,196 4,035,680 2.5 

Unused loan commitments ... .. ... .. .... ...... ...... ..... ..... .. .... ... ........ . 1,477,164 1,423,719 1,319,778 11 .9 

Estimated insured deposits ........ ... .................... ... ...... ....... ..... 2,569,453 2,577,137 2,623,184 -2.0 

Preliminary Preliminary 

First Three First Three 3rd Qtr 3rd Qtr 3⁄4Change 

INCOME DATA Qtrs 1993 Qtrs 1992 3⁄4Change 1993 1992 92:3-93:3 

Total interest income ........... .................... .. .. ..... .. .. . $234,718 $254,318 -7.7 $78,867 $83,123 -5.1 

Total interest expense .. ........ ..................... ....... .. .. . 106,072 131,481 -19.3 35,610 40,907 -12.9 

Net interest income ............................ ........ .. ...... . 128,647 122,837 4.7 43,257 42,216 2.5 

Provision for loan losses .................................... .. . 16,190 23,564 -31 .3 4,993 8,177 -38.9 

Total noninterest income .................... ...... ............ . 61 ,166 55,032 11 .1 21 ,137 19,075 10.8 

Total noninterest expense ...... ....... .. ............. ........ . 122,893 115,688 6.2 41,251 39,757 3.8 

Securities gains (losses) .............................. ... ..... . 3,051 3,845 -20.7 1,079 1,538 -29.8 

Applicable income taxes .... .. .. ........... .. .............. .... . 17,811 13,853 28.6 6,351 4,962 28.0 

Extraordinary gains, net. ... .... ........ .... .. .... ............. . 1,974 4<l1 302.0 (234) 84 N/M 

Net income ... ..... ........... ... ........ ... ... .. ................ .. . . 37,942 29,101 30.4 12,644 10,017 26.2 

Net charge-offs ..... .. .... ... .. ..... ...... .......................... . 15,778 21,586 -26.9 4,840 7,622 -36.5 

Cash di vidends .......................... .............. ...... ..... .. . 15,487 10,005 54.8 5,700 3,393 68.0 

Net operating income ....................................... .. . 33,799 25,778 31 .1 12,094 8,829 37.0 

•Excludes institutions in Resolution Trust Corporation conservatorship, one self-liquidating savings institution, and insured branches of foreign banks. 

NIM - Not meaningful 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 14 Third Quarter 1993 
TABLE 1-D. Selected Indicators, BIF-Member Depository Institutions* 

(dollar figures in millions) ,__ _ _ _ 19_ _ _93 •• ____ _ 19_ 9_2_•• ______1992 _____1991 1990 

Number of institutions reporting ............................... . 11,422 11,948 11,813 12,305 12,791 

Total assets .............................................................. . $3,877,491 $3,694,746 $3,711,375 $3,660,426 $3,646,840 

Total deposits ............................................................ 2,899,392 2,825,374 2,873,079 2,881,739 2,861,440 

Number of problem institutions................................. . 548 987 856 1,089 1,046 

Assets of problem institutions (in billions) ................. $313 $558 $464 $610 $409 

Number of failed/assisted institutions ........................ 36 80 122 127 169 

Assets of failed/assisted institutions (in billions) ....... . $3 $22 $44 $63 $15 

••As of September 30, 1993. 

TABLE 11-D. Selected Aggregate Condition and Income Data, BIF-Member Depository Institutions* 

(dollar figures in millions) Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter % Change 

1993 1993 1992 92:3-93:3 

Number of institutions reporting .............................................. . 11,422 11,541 11,948 

Commercial banks ............................................ .................... . 11,013 11,131 11,527 

Savings institutions ............................................... ................. 409 410 421 

Total employees (full-time equivalent) .................................... . 1,542,470 1,541,527 1,535,344 

CONDITION DAT A 

Total assets ........................... .................................................. $3,877,491 $3,808,796 $3,694,746 4.9 

Loans secured by real estate, total. ...... ................................ . 1,052,543 1,036,747 988,816 6.4 

1-4 Family residential ......................................................... . 606,710 593,519 541,947 12.0 

Multifamily residential property ........................................... . 47,239 46,363 40,349 17.1 

Commercial real estate ... .... ...................................... .......... . 284,622 281,466 272,605 4.4 

Construction development and land ................................... . 71,084 72,585 90,866 -21.8 

Commercial & industrial loans .............................................. . 534,075 539,049 544,483 -1.9 

Reserve for losses ............... ............................................... . 56,643 56,683 58,013 -2.4 

Total deposits....... ................................................................ . 2,899,392 2,879,572 2,825,374 2.6 

Estimated insured deposits ......................................... ......... . 2,017,925 2,016,455 1,985,257 1.6 

BIF-insured deposits (estimated) ........................................ . 1,882,377 1,886,310 1,906,434 -1.3 

SAIF-insured deposits (estimated) ..................... ................ . 135,548 130,145 78,823 72.0 

Noncurrent loans and leases ................................................ . 55,268 59,037 75,454 -26.8 

Other real estate owned ...................... ................................. . 22,796 26,289 32,159 -29.1 

Equity capital ........ ................................................................ . 308,299 300,383 273,382 12.8 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions : 

Well capitalized ................................... .................................. . 11,150 11,216 11,257 -1.0 

Adequately capitalized .......................................................... . 201 232 479 -58.0 

Undercapitalized ...... ............................................................. . 40 50 114 -64.9 

Significantly undercapitalized ............................................... . 27 30 57 -52.6 

Critically undercapitalized ..................................................... . 4 13 41 -90.2 

Total assets: 

Well capitalized ......................................................... ............. 3,696,290 3,642,873 2,842,432 30.0 

Adequately capitalized ............................... .............. ............. . 169,445 150,113 775,344 -78.1 

Undercapitalized.. ........................ ............ ........... ................... 5,542 7,993 37,425 -85.2 

Significantly undercapitalized ....................... ....................... . 5,678 6,971 22,810 -75.1 

Critically undercapitalized ..................................................... . 537 846 16,735 -96.8 

Preliminary Preliminary 

First Three First Three 3rd Qtr 3rd Qtr %Change 

INCOME DATA Qtrs 1993 Qtrs 1992 %Change 1993 1992 92:3-93:3 

Net interest income ............ ......... ... ...................... . $110,945 $104,217 6.5 $37,427 $35,933 4.2 

Provision for loan losses...................................... . 14,061 20,695 -32.1 4,172 7,115 -41.4 

Net income ...................................... ..................... . 33,555 24,925 34.6 11,710 8,778 33.4 

Net charge-offs ..................................................... . 14,028 19,795 -29.1 4,144 7,052 -41 .2 

Number of institutions reporting net losses .......... . 542 817 -33.7 556 800 -30.5 

*Excludes insured branches of foreign banks. 

FDIC Quarterly Banking Profile 

Third Quarter 1993 15 BIF-Member Depository Institutions 
TABLE 1-E. Selected Indicators, SAIF-Member Depository Institutions* 

(dollar figures in millions) f------1_9_93_**_ _ ___ 19_9_2_** _______ 1992 ___ _ 1991 1990

Number of institutions reporting...... .......................... 1,956 2,085 2,039 2,177 2,367 

Total assets.................................. .......... .. ............ .. ... $759,733 $835,091 $824,266 $883,187 $1,001,804 

Total deposits.................... .. ........... ..................... ...... 577,641 669,542 653,865 712,533 775,826 

Number of problem institutions........................... ....... 116 240 207 337 446 

Assets of problem institutions (in billions)........ ......... $66 $154 $128 $209 $231 

Number of failed/assisted institutions...................... .. 9 46 59 144 213 

Assets of failed/assisted institutions (in billions)...... .. $6 $32 $44 $79 $130 

..As of September 30, 1993. 

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

(dollar figures in millions) Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter % Change 

1993 1993 1992 92:3-93:3 

Number of institutions reporting............ .......... ..................... .... 1,956 1,971 2,085 -6.2 

Commercial banks .. .............................. .. ..... ................... ....... 68 68 63 7.9 

Savings institutions .. ...... .. ................................. ..................... 1,888 1,903 2,022 -6.6 

Total employees (full-time equivalent) .. .................................. . 219,907 218,715 232,279 -5.3 

CONDITION DATA 

Total assets.. ....... ....... .... .. ......... ..... ... ........... .......................... . $759,733 $764,470 $835,091 -9.0 

Loans secured by real estate, total. ..... ...... .. ...... .................... 453,570 456,626 508,754 -10.8 

1-4 Family residential................................ .................. ...... .. 352,176 355,506 392,554 -10.3 

Multifamily residential property .. ........ ....... .... .... .......... ......... 46,309 46,057 53,379 -13.2 

Commercial real estate........... ... ........ .. .............................. .. 38,515 39,065 44,710 -13.9 

Construction development and land.. ............................. ..... 16,515 15,946 18,078 -8.6 

Commercial & industrial loans ... .. ..... .. .................. ...... ......... .. 5,865 6,117 13,300 -55.9 

Reserve for losses ......... .......... ...... ... ................................ ... 6,103 6,110 6,271 -2.7 

Total deposits ...................... .. .... ... .......... ........ ........ .............. . 577,641 588,833 669,542 -13.7 

Estimated insured deposits ... ... ..... ... ....... ... ..... ..... ............... . . 551,528 560,682 637,927 -13.5 

BIF-insured deposits (estimated) .................. ....... ... .. ........ ... 3,595 4,907 892 303.0 

SAIF-insured deposits (estimated) ............... .... ................ .. . 547,933 555,775 637,035 -14.0 

Noncurrent loans and leases .. .. ...................... .... ...... ........ .. ... 9,611 9,750 12,856 -25.2 

Other real estate owned ......................... ............................. .. 6,901 8,114 11 ,823 -41.6 

Equity capital .. .......... .. .......................... .. ........... ........ .. ..... .... . 58,374 57,081 57,020 2.4 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions: 

Well capitalized ......... .............................. ... ............... ....... .. .. .. 1,815 1,787 1,623 11.8 

Adequately capitalized ....... ..................... ... .. ..... ................ ... . 126 138 311 -59.5 

Undercapitalized ....... ....................... .... .... ... ... ... ................... .. 10 23 84 -88.1 

Significantly undercapitalized ..... ... .. ............... ... ...... ....... ..... .. 4 16 36 -88.9 

Critically undercapitalized ...... .. .... ....... ............ .. .................. .. . 1 6 31 -96.8 

Total assets: 

Well capitalized ................... .... .. .......... ....... .. ......... .............. ... $650,825 $655,002 $532,783 22.2 

Adequately capitalized .... ... ..... .... ..... ............ .................... ... ... 106,482 78,581 200,172 -46.8 

Undercapitalized.. .... ...... ................... ... ... ... ....................... .... . 1,874 6,185 67,945 -97.2 

Significantly undercapitalized .. .. ... ...... ................................ .. 539 19,872 11 ,725 -95.4 

Critically undercapitalized .. ................. ..... .. ... .... ... .... ............ .. 13 4,825 22,466 -99.9 

Preliminary Preliminary 

First Three First Three 3rd Qtr 3rd Qtr %Change 

INCOME DATA Qtrs 1993 Qtrs 1992 %Change 1993 1992 92:3-93:3 

Net interest income....... ........................................ $17,702 $18,620 -4.9 $5,830 $6,283 -7.2 

Provision for loan losses..................................... .. 2,130 2,869 -25.8 822 1,062 -22.6 

Net income...... .... ...... ............................................ 4,387 4,175 5.1 935 1,239 -24.5 

Net charge-offs... ................................................... 1,751 1,792 -2.3 696 570 22.1 

Number of institutions reporting net losses......... .. 99 149 -33.6 122 158 -22.8 

*Excludes institutions in Resolution Trust Corporation conservatorship and one self-liquidating institution. 

FDIC Quarterly Banking Profile 

SAIF-Member Depository Institutions 16 Third Quarter 1993 
Number of FDIC-Insured "Problem" Institutions 

1990-1993 

Number 

1,492 D Savings Institutions 

1,500 1,426 1,362 1,305 I Commercial Banks 

1,227 

1,000 

500 

0 

12/90 12/91 3/92 6/92 9/92 12/92 3/93 6/93 9/93 

Savings Institutions 480 410 381 349 318 276 255 209 168 

Commercial Banks 1,012 1,016 981 956 909 787 671 580 496 

Assets of FDIC-Insured "Problem" Institutions 

1990-1993 

Amount in Billions 

1,000 .--------------------------------. 

DSavings Institutions 

819 809 

800 740 711 I Commercial Banks 

640 

600 

400 

200 

0 

12/90 12/91 3/92 6/92 9/92 12/92 3/93 6/93 9/93 

Savings Institutions 298 291 274 245 223 184 167 128 98 

Commercial Banks 342 528 535 495 488 408 377 326 281 

FDIC Quarterly Banking Profile 

Third Quarter 1993 17 All FDIC-Insured Institutions 
NOTES TO USERS 

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

Corporation (FDIC). These notes are an integral part of this 

publication and provide information regarding the comparability of 

source data and reporting differences over time. The information 

presented in the FDIC Quarterly Banking Profile is divided into the 

following groups of institutions. 

FDIC-Insured Commercial Banks (Tables I-A through V-A.) 

This section covers commercial banks insured by the FDIC either 

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

Association Insurance Fund (SAIF). Most institutions included in 

this publication are traditional full-service commercial banks. However, several types of more specialized institutions are also included, which under existing legislative definitions and regulatory 

practices are considered commercial banks. These institutions 

include banks primarily engaged in credit card operations, home 

equity lending or consumer-orientated activities, banks created 

primarily to benefit parent company operations, and banks that limit 

or restrict their activities or scope of operations. These institutions 

are regulated by and submit financial reports to one of the three 

federal commercial bank regulators (the Board of Governors of the 

Federal Reserve System, the FDIC or the Office of the Comptroller 

of the Currency). 

FDIC-Insured Savings Institutions (Tables 1-B through V-8.) 

This section covers savings institutions insured by either BIF or 

SAi F that operate under state or federal banking codes applicable 

to thrift institutions, except for one self-liquidating institution primarily funded by the FSLIC Resolution Fund (FRF). Savings institutions that have been placed in Resolution Trust Corporation 

conservatorship are also excluded from these tables while in 

conservatorship. The institutions covered in this section are regulated by and submit financial reports to one of two Federal 

regulators -- the FDIC or the Office of Thrift Supervision (OTS) . 

All FDIC-Insured Institutions by Insurance Fund 

(Tables 1-C through 11-E.) 

Summary balance sheet and earnings data are provided for commercial banks and savings institutions according to insurance fund 

membership. BIF-member institutions may acquire SAIF-insured 

deposits, resulting in institutions with some deposits covered by 

both insurance funds. Also, SAIF members may acquire BIF-insured deposits. The insurance fund membership does not necessarily reflect which fund insures the largest percentage of an 

institution's deposits. Therefore, the BIF-member and the SAIFmember tables each include deposits from both insurance funds. 

Depository institutions that are not insured by the FDIC through 

either the BIF or SAIF are not included in the FDIC Quarterly 

Banking Profile. U.S. branches of institutions headquartered in 

foreign countries and non-deposit trust companies are not included. Efforts are made to obtain financial reports for all active 

institutions. However, in some cases, final financial reports are not 

available for institutions that are 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) Ca// 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 Financial Time 

Series (FTS) 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 Ca// Reports. The detailed schedules 

of the Thrift Financial Report reflect the consolidation of the parent 

thrift with all finance subsidiaries. All other subsidiaries are reported as investments on an equity basis or a cost basis. Some 

accounting differences exist, such as asset sales with recourse, 

for which the data necessary to reconcile these differences is not 

reported. 

All year-to-date and quarterly income statement figures used in 

calculating performance ratios represent amounts for that period, 

annualized (multiplied by the number of periods in a year). Quarterly income figures from the Thrift Financial Report are accumulated for each reporting institution to obtain a year-to-date income 

statement. For institutions that file a Call Report, the reported 

year-to-date income statement figures for two periods are used to 

derive a quarterly income statement after making adjustments to 

account for "pooling-of-interest" mergers since they include yearto-date income for all merged institutions. 

All asset and liability figures used in calculating performance ratios 

represent average amounts for the period (beginning-of-period 

amount plus end-of-period amount plus any interim periods, divided by the total number of periods). For "pooling-of-interest" 

mergers, the assets of the acquired institution(s) are included in 

average assets since the year-to-date income includes the results 

of all merged institutions. No adjustments are made for "purchase 

accounting" mergers. All asset and liability figures used in calculating the condition ratios represent amounts reported at the end 

of the quarter. Growth rates represent the percentage change over 

a 12-month period in totals for institutions in the base period to 

totals for institutions in the current period. Tables Ill and IV do not 

provide growth rates for the "Asset Size Distribution" since many 

institutions migrate between size groups. 

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, securities held in trading accounts, 

federal funds sold, securities purchased with agreements to resell, 

and other assets. 

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

preferred stock, and other liabilities. 

BIF-insured deposits (estimated) -- the amount of deposits in 

accounts of less than $100,000 insured by the Bl F. For SAi F-member "Oakar" institutions, it represents the adjusted attributable 

amount acquired from BIF members. 

Capital Category Distribution -- each institution's capital category is calculated or estimated from its financial report and does 

not reflect supervisory upgrades or downgrades: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

Capital• Capital• Leverage Equity 

Well capitalized ~10% and ~6% and ~5% 

Adequately capitalized ~8% and ~4% and ~4% 

U ndercapitalized <8% or <4% or <4% 

Significantly 

undercapitalized <6% or <3% or <3% 

Critically undercapitalized -- :::;2% 

·Asa percentage of risk-weighted assets. 

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 mortgage 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. 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 18 Third Quarter 1993 
Direct and indirect investments in real estate -- excludes loans 

secured by real estate and property acquired through foreclosure. 

Earning assets -- all loans and other investments that earn interest 

or dividend income. 

Estimated insured deposits -- estimated amount of insured deposits (account balances less than $100,000). The sum of all 

deposit balances in accounts of less than $100,000 plus the 

number of accounts with balances greater than $100,000 multiplied by $100,000. 

Failed/assisted institutions -- An institution fails when regulators 

take control of the institution, placing the assets and liabilities into 

a bridge bank, conservatorship, receivership, or another healthy 

institution. This action may require the FDIC -- or the RTC -- 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 -- borrowings from the Federal Home Loan Bank 

(FHLB) reported by institutions that file a Thrift Financial Report. 

Institutions that file a Call Report do not report borrowings ("advances") from the FHLB separately. 

Goodwill and other intangibles -- intangible assets include mortgage servicing rights, purchased credit card relationships and 

other identifiable intangible assets. 

Gross real estate assets -- real estate loans, other real estate 

owned, direct and indirect investments in real estate, and mortgage-backed securities before subtracting any reserves. 

Gross 1-4 family mortgages -- real estate loans secured by 1-4 

family properties before subtracting any reserves. 

Investment securities -- excludes securities held in trading accounts where possible. 

Loans secured by real estate -- includes home equity Joans, 

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. 

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 and leases -- total loans and leases less unearned 

income, other contra accounts and the allowance ("reserve") for 

loan and lease losses. 

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 debt securities and other assets were not 

included prior to March 1991. 

Noncurrent loans & leases -- the sum of loans and leases 90 

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

Number of institutions reporting --the number of institutions that 

actually filed a financial report. 

Off-balance sheet derivatives -- represents the sum of the following: interest-rate contracts, defined as: the notional value of interest-rate swaps, futures and forward contracts and option contracts; 

foreign exchange rate contracts and commodity and equity contracts (defined similarly to interest-rate contracts). 

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, the are rated either a "4" or "5". For all BIF-member 

institutions, and for all SAi F-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. 

Provision for loan losses -- provision for loan and lease losses 

plus provision for allocated transfer risk reserve. 

Reserve for loan losses -- the allowance for loan and lease losses 

plus the allowance for allocated transfer risk. 

Restructured loans and leases -- loan and lease financing receivables with terms restructured from the original contract. Excludes restructured loans and leases that are not in compliance 

with the modified terms. 

Return on assets -- net income (including gains or losses on 

securities and extraordinary items) as a percentage of average 

total assets. The basic yardstick of bank profitability. 

Return on equity -- net income (including gains or losses on 

securities and extraordinary items) as a percentage of average 

total equity capital. 

Risk-weighted assets -- assets adjusted for risk-based capital 

definitions which include on-balance sheet as well as off-balance 

sheet items multiplied by risk weights that range from zero to 100 

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

equivalent amount for selected off-balance sheet accounts. 

SAIF-insured deposits (estimated) -- the amount of deposits in 

accounts of less than $100,000 insured by the SAIF. For BIF-member "Oakar" institutions, it represents the adjusted attributable 

amount acquired from SAIF members. 

Troubled real estate asset rate -- noncurrent real estate loans 

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

and other real estate owned. 

Unused loan commitments -- includes credit card lines, home 

equity lines, commitments to make loans for construction, loans 

secured by commercial real estate, and unused commitments to 

originate or purchase loans. 

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

foreign office deposits, federal funds purchased, securities sold 

under agreements to repurchase, and other borrowings. 

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

earned on loans and investments as a percentage of average 

earning assets. 

FDIC Quarterly Banking Profile 

Third Quarter 1993 19 All FDIC-Insured Institutions