Donna Tanoue, Chairman 

Third Quarter 2000 

Division of Research 

& Statistics 

Don Inscoe 

Associate Director 

Statistics Branch 

(202) 898-3940 

Tim Critchfield 

(202) 898-8557 

Jim McFadyen 

(202) 898-7027 

Ross Waldrop 

(202) 898-3951 

COMMERCIAL BANK EARNINGS PERFORMANCE — THIRD QUARTER, 2000 

n Industry Earnings Rebound From Second-Quarter Decline 

n Net Income Of $19.3 Billion Is Third-Highest Ever 

n Troubled Commercial Loans Continue To Rise 

n Loss Provisions Absorb A Growing Share Of Revenues 

n Commercial Banks' Assets Surpass $6-Trillion Level 

Insured commercial banks rebounded from a disappointing second quarter to record their thirdbest quarterly earnings ever. Industry net 

income totaled $19.3 billion in the third quarter, 

up $4.6 billion (31.6 percent) from the previous 

quarter, but $106 million (0.6 percent) lower than 

in the third quarter of 1999. The favorable earnings performance was made possible by the 

absence of the sizable restructuring and creditrelated charges at large banks that depressed 

the industry’s second-quarter results. Without 

these charges, noninterest expenses declined 

from second-quarter levels, while noninterest 

income recovered to a more normal level. 

Compared to a year ago, noninterest revenues 

were moderately higher, and noninterest expenses were up more sharply. Third-quarter earnings 

were held down by rising loan-loss provisions and 

higher losses on sales of securities. The average 

return on assets (ROA) in the third quarter was 

1.28 percent, compared to 0.99 percent in the 

second quarter, and a record-high 1.41 percent in 

the third quarter of 1999. For the first nine 

months of 2000, commercial banks’ earnings of 

$53.4 billion were $777 million (1.4 percent) 

below the level of a year ago, and the industry 

ROA was 1.20 percent, down from 1.32 percent. 

QUARTERLY NET INCOME, 

1996–2000 $ Billions 

Securities and Other Gains/Losses, Net 

19.5 19.3 Net Operating Income 19.4 

18.0 17.7 16.9 

14.5 14.6 14.7 15.3 15.9 16.1 14.7 15.114.8 13.8 13.2 13.7 

12.0 

0 

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

1996 1997 1998 1999 2000 

Earnings strength remained widespread, as 

almost two out of every three commercial banks 

(62.9 percent) reported an ROA of 1 percent or 

higher for the quarter. However, there were signs 

that banks may be having difficulty sustaining current levels of profitability. Fewer than half of all 

commercial banks (48.4 percent) reported a higher quarterly ROA than a year ago. Net interest 

margins continue to decline, while loan-loss provision expenses are rising. Growth in noninterest 

income, which has been the strongest source of 

rising bank revenues, is showing signs of slowing 

down. Noninterest income was only $2.3 billion 

(6.2 percent) higher than a year ago, when a 

large sale of assets boosted noninterest income 

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

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

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

the FDIC’s Institution Directory (I.D.) System on this Web site. 
by $1 billion. Banks’ income from trust operations, 

which until recently had been growing at double-digit 

annual rates, was only $273 million (5.4 percent) 

higher than a year ago. In contrast, revenues from 

trading operations were up by $644 million (29.8 percent). 

NONINTEREST INCOME AS A PERCENTAGE OF 

NET OPERATING REVENUE, 1985–2000 

Percentage 

1986 1988 1990 1992 1994 1996 1998 2000 

20 

30 

40 

46.5 

26.4 

28.0 

17.9 

Assets > $1 Billion 

Assets < $1 Billion 

50 

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

Net interest income was only 4.9 percent ($2.4 billion) 

above the level of a year ago, even though banks’ 

interest-earning assets were 10.2 percent higher, 

leaving the industry’s net interest margin 19 basis 

points lower than a year ago. As short-term interest 

rates have risen in the 12 months ended September 

30, and as the spreads between short-term interest 

rates and medium- and long-term rates have narrowed, banks’ average funding costs have escalated 

more rapidly than the average yields on their assets. 

Third-quarter loan-loss provisions were $1.4 billion 

(25.9 percent) above the level of a year ago. Through 

the first nine months of this year, loss provisions 

absorbed 7.4 percent of the industry’s net operating 

QUARTERLY NET INTEREST MARGINS, 

1996–2000 

Net Interest Margin (%) 

revenues, compared to 6.3 percent in the first three 

quarters of 1999. The rising trend in loss provisions is 

a reflection of rising loan losses and growing inventories of noncurrent loans. Net charge-offs totaled $5.7 

billion in the third quarter, up 16.5 percent ($802 million) from the third quarter of 1999. The largest 

amount of loan losses came from banks’ credit-card 

loans. Net charge-offs of banks’ credit-card loans 

totaled $2.4 billion in the quarter, for a net charge-off 

rate of 4.27 percent, compared to a 4.44 percent rate 

a year earlier. While charge-offs of credit-card loans 

remain higher than those of commercial and industrial loans, the latter category continues to exhibit more 

rapid growth. Almost one third of all loan charge-offs 

in the third quarter ($1.8 billion, 31.8 percent) 

occurred in loans to commercial and industrial borrowers. Commercial and industrial loan charge-offs 

were $548 million (43.7 percent) higher than a year 

ago, whereas credit-card charge-offs were up by a 

more modest $266 million (12.5 percent). 

Even as banks charge off loans at higher rates, their 

remaining inventories of noncurrent loans continue to 

rise. Total noncurrent loans increased by $2.2 billion 

(6.0 percent) in the third quarter, and are up by $5.9 

billion (17.8 percent) over the past 12 months. 

Noncurrent commercial and industrial loans rose by 

$1.3 billion (8.8 percent) in the quarter, and are up by 

$4.3 billion (37.7 percent) from the level at the end of 

the third quarter of 1999. 

Banks increased their reserves for loan losses by 

$602 million (1.0 percent) in the third quarter, but 

reserve growth continues to lag behind growth in noncurrent loans, as well as growth in total loans. The 

CREDIT QUALITY OF BANKS’ COMMERCIAL AND 

INDUSTRIAL LOANS, 1994–2000 

$ Billions 

3 4 1 3 4 1 341 341 3 4 1 34 23 

0 

5 

10 

15 

Quarterly Net Charge-offs 

Noncurrent Loans 

20 

$7.5 

2 2 2 2 2 2 1 

$17.7 

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

3.5 

4.0 

4.5 

5.0 

5.5 

2 2 2 2 1 

Assets > $1 Billion 

Assets < $1 Billion 4.56 

3.80 

1996 1997 1998 1999 2000 1994 1995 1996 1997 1998 1999 2000 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 Third Quarter 2000 
industry’s “coverage ratio” declined from $1.69 in 

reserves for every $1 of noncurrent loans to $1.61 

during the third quarter. A year ago, the ratio was 

$1.77. At the same time, the industry’s ratio of 

reserves to total loans declined to 1.66 percent, from 

1.67 percent at the beginning of the quarter and 1.74 

percent a year ago. 

RESERVE RATIO AND COVERAGE RATIO, 

1990–2000 Reserve Ratio* Coverage Ratio** 

1.5 

2.0 

2.5 

3.0 

0 

100 

200 

2.54% 

160.96% 

1.66% 

81.60% 

Reserve Ratio* 

Coverage Ratio** 

1990 1992 1994 1996 1998 2000 

* Reserves, % of total loans and leases 

** Reserves, % of noncurrent loans and leases 

Asset growth accelerated in the third quarter, as total 

assets of insured commercial banks surpassed $6 

trillion for the first time. The rising growth rate of 

industry assets continued a trend that began in the 

first quarter. As was the case in the two previous 

quarters, much of the increase in assets has consistthe third quarter of 1999. Over the last 12 months, 

total assets of commercial banks have increased by 

10.0 percent, while loans and leases have grown by 

12.4 percent. 

Commercial banks’ liabilities continued a recent pattern of strong growth in nondeposit liabilities and 

more expensive time deposits, while growth in lowercost “core” deposits was slower. For the second consecutive quarter, brokered deposits registered a 

sharp increase. As was the case in the second quarter, two banks accounted for a large share of the 

increase. The shift toward higher-cost funding contributed to the decline in net interest margins in the 

third quarter. 

NET LOANS AND LEASES AS A PERCENT OF 

TOTAL ASSETS, 1990–2000 Percent 

55 

60 

54.9% 

65 

61.3% 

60.5% 

1 2 3 41 2 341 2 341 2 341 2 341 2 3 4 1 2 341 2 341 2 341 2 34 1 23 

1990 1992 1994 1996 1998 2000 

ed of loan growth. Total assets increased by $80.9 

billion (1.4 percent) during the quarter, as loans and 

leases grew by $72.6 billion. The loan categories with 

the strongest growth in the third quarter included 

loans to depository institutions, which increased by 

12.5 percent ($13.8 billion), home equity lines of 

credit, which rose by 5.8 percent ($6.8 billion), and 

real estate construction and development loans, 

which grew by $6.9 billion (4.6 percent). Commercial 

and industrial loan growth showed signs of slowing, 

as did commercial real estate and construction loans. 

Loans to commercial borrowers rose by $9.9 billion 

during the quarter, the smallest quarterly increase 

since the second quarter of 1996. Real estate construction loans increased by $6.9 billion, after a $7.9-

billion increase in the previous quarter and a 

$9.3-billion quarterly increase a year ago. Loans 

secured by nonfarm nonresidential real estate rose 

by $8.7 billion, compared to a $13.3-billion increase 

in the second quarter, and a $10.9-billion increase in 

Commercial banks’ equity capital registered strong 

growth in the third quarter, thanks to higher retained 

earnings and improved market values on securities 

holdings. Equity capital rose by $17.8 billion (3.5 percent) during the third quarter, as the industry’s equitycapital-to-assets ratio increased from 8.41 percent to 

8.59 percent. Retained earnings contributed $6.8 billion to the increase in equity, while appreciation in 

securities portfolios added $5.7 billion. 

The number of FDIC-insured commercial banks 

reporting financial results declined by 102 during the 

third quarter. Two commercial banks failed during the 

quarter, bringing the total for the first nine months of 

the year to 4 failures. There were 33 new bank charters, while 135 commercial banks were absorbed by 

mergers. The number of commercial banks on the 

FDIC’s “Problem List” rose from 73 to 75 during the 

quarter, while assets of “problem” banks increased 

from $11.1 billion to $11.6 billion. 

FDIC Quarterly Banking Profile 

Third Quarter 2000 3 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6 

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

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

Return on equity (%)............................................. 

Core capital (leverage) ratio (%).............................. 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 

Net charge-offs to loans (%).................................... 

Asset growth rate (%)............................................. 

Net interest margin (%).......................................... 

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

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

Percentage of unprofitable institutions (%).................. 

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

Assets of problem institutions (in billions).................. 

Number of failed/assisted institutions........................ 

2000* 1999* 1999 1998 1997 1996 1995 

1.20 

14.25 

7.84 

0.70 

0.59 

10.01 

3.97 

2.81 

8,375 

6.61 

75 

$12 

4 

1.32 

15.47 

7.81 

0.67 

0.58 

4.64 

4.07 

19.22 

8,621 

6.75 

69 

$4 

5 

1.31 

15.31 

7.79 

0.64 

0.61 

5.37 

4.07 

20.42 

8,580 

7.47 

66 

$4 

7 

1.19 

13.93 

7.54 

0.65 

0.67 

8.53 

4.07 

2.24 

8,774 

6.11 

69 

$5 

3 

1.23 1.19 1.17 

14.68 14.45 14.66 

7.56 7.64 7.61 

0.66 0.75 0.85 

0.64 0.58 0.49 

9.54 6.16 7.53 

4.21 4.27 4.29 

12.46 6.43 7.48 

9,142 9,527 9,940 

4.85 4.28 3.55 

71 82 144 

$5 $5 $17 

1 5 

* 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) 

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

Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter %Change 

2000 2000 1999 99:3-00:3 

8,375 8,477 8,621 -2.9 

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

CONDITION DATA

1,654,862 1,661,812 1,633,280 1.3 

 Total assets..................................................................... $6,064,084 $5,983,203 $5,512,519 10.0

 Loans secured by real estate............................................. 1,659,400 1,626,921 1,431,550 15.9

 Commercial & industrial loans.......................................... 1,044,323 1,034,404 947,834 10.2

 Loans to individuals......................................................... 584,412 568,137 530,585 10.1

 Farm loans..................................................................... 47,331 47,016 46,537 1.7

 Other loans & leases...................................................... 444,790 430,783 409,237 8.7

 Less: Unearned income................................................... 3,046 3,205 3,659 -16.8

 Total loans & leases......................................................... 3,777,210 3,704,056 3,362,084 12.3

 Less: Reserve for losses................................................... 62,533 61,931 58,433 7.0

 Net loans and leases......................................................... 3,714,677 3,642,126 3,303,651 12.4

 Securities........................................................................ 1,061,160 1,046,524 1,035,658 2.5

 Other real estate owned...................................................... 2,817 2,781 2,920 -3.5

 Goodwill and other intangibles............................................. 104,516 102,299 87,051 20.1

 All other assets............................................................... 1,180,914 1,189,473 1,083,240 9.0 

Total liabilities and capital................................................... 6,064,082 5,983,203 5,512,519 10.0

 Noninterest-bearing deposits............................................. 704,190 723,822 689,650 2.1

 Interest-bearing deposits..................................................... 3,315,391 3,250,082 3,017,854 9.9

 Other borrowed funds......................................................... 1,127,344 1,128,578 973,596 15.8

 Subordinated debt............................................................ 84,510 82,216 75,744 11.6

 All other liabilities............................................................ 311,451 295,077 286,782 8.6

 Equity capital.................................................................. 521,195 503,428 468,893 11.2 

Loans and leases 30-89 days past due.................................... 43,186 39,414 39,400 9.6 

Noncurrent loans and leases................................................ 38,851 36,654 32,972 17.8 

Restructured loans and leases............................................. 1,747 1,115 1,313 33.1 

Direct and indirect investments in real estate........................... 316 320 285 11.0 

1-4 Family residential mortgages.......................................... 920,551 903,729 789,317 16.6 

Mortgage-backed securities................................................... 448,962 452,682 455,257 -1.4 

Earning assets.................................................................. 5,254,716 5,180,478 4,766,636 10.2 

Long-term assets (5+ years)................................................ 1,177,641 1,209,326 1,146,777 2.7 

Volatile liabilities............................................................... 2,166,092 2,145,835 1,839,053 17.8 

Foreign office deposits......................................................... 694,207 685,411 602,778 15.2 

FHLB Advances (Source: FHFB).......................................... 175,559 178,564 144,047 21.9 

Unused loan commitments................................................... 4,328,593 4,175,242 3,827,935 13.1 

Off-balance-sheet derivatives................................................ 38,750,576 39,563,861 36,252,328 6.9 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

First Three First Three 3rd Quarter 3rd Quarter %Change 

Qtrs 2000 Qtrs 1999 %Change 2000 1999 99:3-00:3 

$316,176 $272,467 16.0 $110,119 $92,486 19.1 

163,866 128,494 27.5 58,807 43,566 35.0

152,310 143,973 5.8 51,312 48,921 4.9 

19,772 15,711 25.9 6,761 5,372 25.9 

113,212 106,097 6.7 39,265 36,972 6.2 

160,622 150,354 6.8 53,651 50,011 7.3 

-2,484 510 N/M -713 -198 N/M 

29,223 30,265 -3.4 10,183 10,934 -6.9 

16 -33 N/M 3 0 N/M

53,438 54,215 -1.4 19,272 19,378 -0.6 

15,973 14,358 11.3 5,666 4,864 16.5 

35,227 35,836 -1.7 12,452 12,848 -3.1

55,482 53,967 2.8 19,994 19,532 2.4 

N/M - Not meaningful 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 Third Quarter 2000 
TABLE III-A. First Three Quarters 2000, FDIC-Insured Commercial Banks 

FIRST THREE QUARTERS Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

8,375 4,922 3,070 301 82 668 1,429 1,808 2,151 1,406 913 

Total assets (in billions).................................... $6,064.1 $233.2 $770.5 $868.1 $4,192.3 $2,092.4 $1,611.1 $1,041.9 $406.5 $294.1 $618.1 

Total deposits (in billions)................................. 4,019.6 195.8 626.4 602.2 2,595.1 1,309.6 1,068.6 700.4 282.9 233.4 424.7 

Net income (in millions).................................... 53,438 1,954 7,255 8,616 35,612 20,204 12,389 8,064 4,230 2,336 6,215 

% of unprofitable institutions.............................. 6.6 9.8 1.7 4.0 8.5 9.1 10.8 5.6 3.1 5.8 9.9 

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

Performance ratios (annualized, %) 

68.2 66.7 71.5 63.1 56.1 65.9 68.2 65.2 67.4 70.3 74.7 

Yield on earning assets.................................... 8.24 8.37 8.50 8.41 8.15 8.02 8.12 8.18 8.65 8.26 9.17 

Cost of funding earning assets........................... 4.27 3.80 3.93 4.12 4.40 4.44 4.18 4.51 4.18 3.76 3.84 

Net interest margin.......................................... 3.97 4.57 4.57 4.29 3.75 3.58 3.94 3.67 4.47 4.50 5.34 

Noninterest income to earning assets.................. 2.95 1.22 1.73 2.58 3.38 3.98 2.47 1.88 2.77 1.43 3.64 

Noninterest expense to earning assets.................. 4.19 3.84 3.87 3.92 4.33 4.61 3.97 3.34 4.12 3.70 5.18 

Credit loss provision to assets........................... 0.45 0.25 0.33 0.49 0.47 0.42 0.35 0.38 0.61 0.34 0.84 

Net operating income to assets........................... 1.25 1.15 1.32 1.40 1.21 1.28 1.16 1.10 1.47 1.19 1.52 

Return on assets............................................. 1.20 1.16 1.30 1.36 1.16 1.31 1.05 1.06 1.44 1.08 1.44 

Return on equity............................................. 14.25 10.45 13.97 15.45 14.33 16.41 12.35 13.18 15.75 12.22 14.05 

Net charge-offs to loans and leases..................... 0.59 0.23 0.34 0.63 0.64 0.74 0.43 0.35 0.79 0.35 0.96 

Credit loss provision to net charge-offs.................. 123.78 177.51 153.63 124.05 119.64 107.80 126.27 161.80 113.87 162.07 130.91 

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

Condition Ratios (%) 

58.43 65.75 60.62 55.17 58.38 58.88 59.64 58.66 55.19 60.67 55.54 

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

Loss allowance to: 

86.65 92.01 91.89 90.18 84.66 83.66 86.96 89.87 90.42 89.78 86.61 

Loans and leases.......................................... 1.66 1.39 1.41 1.71 1.71 1.86 1.50 1.41 1.58 1.35 2.10 

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

Noncurrent assets plus 

160.96 148.93 175.57 195.01 153.66 147.24 153.78 156.60 199.52 143.47 223.04 

other real estate owned to assets..................... 0.70 0.69 0.61 0.61 0.73 0.73 0.70 0.67 0.60 0.66 0.70 

Equity capital ratio............................................. 8.59 11.08 9.44 8.99 8.22 8.20 8.46 8.14 9.51 9.07 10.20 

Core capital (leverage) ratio.............................. 7.84 11.18 9.34 8.43 7.25 7.65 7.55 7.75 8.28 8.44 8.85 

Tier 1 risk-based capital ratio.............................. 9.57 16.51 13.04 11.17 8.44 9.68 8.99 9.00 10.50 11.84 10.25 

Total risk-based capital ratio.............................. 12.27 17.61 14.21 12.99 11.60 12.60 11.74 11.74 12.68 13.67 12.68 

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

Structural Changes (YTD) 

92.41 72.75 79.47 90.55 97.46 84.37 97.87 100.88 98.01 75.95 94.83 

New Charters................................................ 140 137 2 1 0 14 49 28 19 7 23 

Banks absorbed by mergers........................... 344 148 152 39 5 29 85 78 83 37 32 

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

PRIOR FIRST THREE QUARTERS

 (The way it was...) 

4 3 1 0 0 0 1 0 2 0 1 

Number of institutions................................1999 8,621 5,241 2,988 315 77 682 1,442 1,877 2,219 1,467 934

 ...............................................1997 9,214 5,977 2,874 297 66 724 1,536 2,020 2,343 1,613 978

 ...............................................1995 10,052 6,828 2,816 339 69 809 1,671 2,195 2,527 1,789 1,061 

Total assets (in billions).............................1999 $5,512.5 $245.4 $743.0 $881.8 $3,642.3 $1,898.5 $1,493.7 $931.1 $373.8 $306.7 $508.7

 ................................................1997 4,869.3 272.3 711.1 899.8 2,986.2 1,839.9 898.5 793.4 329.2 341.4 666.9

 ................................................1995 4,229.5 301.5 692.2 1,066.8 2,168.9 1,613.6 709.8 692.5 274.2 315.5 623.9 

Return on assets (%)................................1999 1.32 1.08 1.36 1.50 1.29 1.25 1.29 1.29 1.51 1.21 1.68

 ................................................1997 1.24 1.25 1.38 1.30 1.18 1.14 1.29 1.27 1.40 1.24 1.31

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

Net charge-offs to loans & leases (%) 

1.19 1.24 1.25 1.31 1.10 1.04 1.19 1.19 1.53 1.20 1.43 

 ................................................1999 0.58 0.35 0.32 0.64 0.64 0.76 0.40 0.35 0.74 0.42 0.94

 ................................................1997 0.62 0.23 0.33 1.03 0.58 0.71 0.44 0.48 0.82 0.33 0.83

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

Noncurrent assets plus 

0.45 0.20 0.32 0.67 0.40 0.60 0.27 0.27 0.49 0.19 0.59 

OREO to assets (%)..............................1999 0.67 0.72 0.63 0.62 0.69 0.78 0.57 0.60 0.62 0.68 0.72

 ................................................1997 0.68 0.77 0.71 0.82 0.62 0.72 0.61 0.62 0.67 0.55 0.77

 ................................................1995 0.92 0.85 0.87 0.89 0.95 1.14 0.69 0.64 0.65 0.64 1.18 

Equity capital ratio (%)..............................1999 8.51 10.92 9.40 9.27 7.97 7.91 8.59 8.21 8.89 8.73 10.62

 ................................................1997 8.53 10.96 9.69 9.33 7.79 7.39 9.28 8.69 9.20 8.98 9.92

 ................................................1995 8.13 10.51 9.42 8.69 7.12 7.57 8.24 8.31 8.83 8.71 8.68 

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 

Third Quarter 2000 5 FDIC-Insured Commercial Banks 
TABLE IV-A. Third Quarter 2000, FDIC-Insured Commercial Banks 

THIRD QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

8,375 4,922 3,070 301 82 668 1,429 1,808 2,151 1,406 913 

Total assets (in billions).................................... $6,064.1 $233.2 $770.5 $868.1 $4,192.3 $2,092.4 $1,611.1 $1,041.9 $406.5 $294.1 $618.1 

Total deposits (in billions)................................. 4,019.6 195.8 626.4 602.2 2,595.1 1,309.6 1,068.6 700.4 282.9 233.4 424.7 

Net income (in millions).................................... 19,271.8 648.0 2,437.1 3,205.0 12,981.7 7,067.1 5,255.6 2,637.9 1,435.6 777.2 2,098.5 

% of unprofitable institutions.............................. 6.8 9.6 2.3 5.3 6.1 8.8 10.5 5.8 3.9 6.3 9.0 

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

Performance Ratios (annualized, %) 

59.0 56.4 63.1 60.8 56.1 63.2 59.2 56.6 55.9 58.5 68.1 

Yield on earning assets.................................... 8.44 8.62 8.73 8.66 8.33 8.15 8.29 8.40 8.93 8.51 9.55 

Cost of funding earning assets........................... 4.51 4.04 4.18 4.38 4.63 4.61 4.44 4.76 4.49 3.99 4.19 

Net interest margin.......................................... 3.93 4.59 4.55 4.28 3.70 3.53 3.85 3.64 4.44 4.52 5.36 

Noninterest income to earning assets.................. 3.01 1.16 1.78 2.96 3.38 3.80 2.82 1.84 2.79 1.48 3.88 

Noninterest expense to earning assets.................. 4.11 3.83 3.87 4.00 4.20 4.43 3.78 3.40 4.12 3.86 5.32 

Credit loss provision to assets........................... 0.45 0.26 0.39 0.54 0.45 0.40 0.37 0.35 0.64 0.32 0.97 

Net operating income to assets........................... 1.33 1.13 1.30 1.54 1.30 1.30 1.49 1.05 1.44 1.13 1.49 

Return on assets............................................. 1.28 1.13 1.28 1.49 1.24 1.36 1.31 1.02 1.42 1.06 1.40 

Return on equity............................................. 15.05 10.18 13.69 16.80 15.30 16.77 15.62 12.62 15.13 11.88 13.67 

Net charge-offs to loans and leases..................... 0.61 0.24 0.37 0.67 0.66 0.74 0.46 0.38 0.72 0.37 1.05 

Credit loss provision to net charge-offs.................. 119.33 174.07 162.33 125.61 112.12 100.13 120.67 135.19 128.72 142.52 136.96 

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

Structural Changes (QTR) 

57.20 66.18 60.23 53.29 57.10 58.45 54.51 60.59 54.97 62.74 54.92 

New charters................................................ 33 33 0 0 0 4 8 7 4 3 7 

Banks absorbed by mergers........................... 135 66 59 7 3 7 28 32 37 14 17 

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

PRIOR THIRD QUARTERS

 (The way it was...) 

2 2 0 0 0 0 1 0 1 0 0 

Return on assets (%)................................1999 1.41 1.11 1.32 1.57 1.41 1.46 1.37 1.25 1.40 1.26 1.74

 .................................................1997 1.22 1.31 1.43 1.40 1.11 1.09 1.32 1.28 1.32 1.23 1.32

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

Net charge-offs to loans & leases (%)

1.32 1.33 1.31 1.35 1.30 1.15 1.27 1.24 1.77 1.27 1.74 

 .................................................1999 0.58 0.23 0.35 0.70 0.63 0.78 0.41 0.33 0.80 0.44 0.85

 .................................................1997 0.66 0.26 0.34 1.10 0.62 0.74 0.47 0.54 0.90 0.39 0.86

 .................................................1995 0.51 0.25 0.35 0.73 0.48 0.71 0.29 0.33 0.54 0.24 0.61 

FDIC Quarterly Banking Profile 

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

September 30, 2000 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 1.09 1.22 0.92 0.89 1.19 1.08 1.18 1.22 0.91 0.98 0.75 

Construction and development........................... 1.04 1.15 1.07 0.88 1.09 0.76 0.81 1.56 1.47 1.06 0.89 

Commercial real estate.................................... 0.66 0.96 0.67 0.74 0.58 0.68 0.58 0.79 0.75 0.77 0.51 

Multifamily residential real estate........................ 0.55 0.57 0.66 0.69 0.46 0.35 0.46 0.76 0.89 0.76 0.56 

Home equity loans.......................................... 0.85 0.78 0.69 0.85 0.87 0.67 0.66 1.38 0.73 0.65 0.58 

Other 1-4 Family residential.............................. 1.42 1.59 1.18 1.04 1.57 1.34 1.68 1.46 0.94 1.21 0.99 

Commercial and industrial loans*........................... 0.83 1.34 1.28 1.23 0.64 0.57 0.60 1.13 1.63 1.25 1.04 

Loans to individuals............................................. 2.29 2.27 2.13 2.31 2.31 2.54 2.27 2.21 2.17 1.62 2.07 

Credit card loans............................................. 2.61 1.96 3.88 2.78 2.51 2.91 2.93 2.20 2.26 1.24 2.13 

Other loans to individuals................................. 2.08 2.28 1.81 2.07 2.13 2.19 2.05 2.21 2.07 1.63 1.94 

All other loans and leases (including farm)............... 0.64 N/A N/A 1.01 0.66 0.63 0.39 1.10 0.57 0.32 0.45 

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

Percent of Loans Noncurrent** 

0.57 0.89 0.53 0.38 0.58 0.15 0.22 1.11 2.34 0.44 0.85 

All real estate loans............................................. 0.77 0.76 0.64 0.70 0.84 0.86 0.80 0.80 0.58 0.79 0.59 

Construction and development........................... 0.74 0.56 0.72 0.77 0.76 0.76 0.75 0.77 0.77 0.85 0.62 

Commercial real estate.................................... 0.75 0.80 0.64 0.76 0.80 0.81 0.70 0.82 0.69 0.89 0.65 

Multifamily residential real estate........................ 0.34 0.48 0.38 0.37 0.31 0.17 0.31 0.45 0.23 0.65 0.48 

Home equity loans.......................................... 0.35 0.30 0.32 0.33 0.36 0.31 0.24 0.59 0.28 0.27 0.25 

Other 1-4 Family residential.............................. 0.81 0.69 0.60 0.70 0.90 0.80 0.96 0.83 0.44 0.65 0.55 

Commercial and industrial loans*........................... 1.52 1.32 1.25 1.28 1.54 1.68 1.53 1.27 1.26 1.68 1.54 

Loans to individuals............................................. 1.35 0.81 0.83 1.04 1.53 2.07 0.92 0.72 1.03 0.51 1.22 

Credit card loans............................................. 1.97 1.06 2.37 1.87 1.98 2.40 1.89 1.16 1.44 0.70 1.62 

Other loans to individuals................................. 0.95 0.80 0.54 0.60 1.16 1.76 0.60 0.67 0.59 0.50 0.45 

All other loans and leases (including farm)............... 0.47 N/A N/A 0.52 0.48 0.39 0.47 0.60 0.43 0.62 0.54 

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

Percent of Loans Charged-off (net, YTD) 

0.53 1.16 0.26 0.55 0.53 0.41 0.79 0.69 0.11 1.15 0.21 

All real estate loans............................................. 0.08 0.04 0.04 0.08 0.10 0.07 0.09 0.10 0.10 0.06 0.06 

Construction and development........................... 0.04 0.08 0.02 0.07 0.03 0.01 0.04 0.03 0.04 0.08 0.04 

Commercial real estate.................................... 0.04 0.05 0.02 0.04 0.06 0.02 0.04 0.09 0.01 0.04 0.03 

Multifamily residential real estate........................ 0.02 0.00 0.03 0.00 0.02 -0.04 0.01 0.02 -0.04 -0.01 0.16 

Home equity loans.......................................... 0.16 0.05 0.04 0.16 0.19 0.09 0.15 0.28 0.18 0.32 0.06 

Other 1-4 Family residential.............................. 0.10 0.04 0.05 0.12 0.11 0.06 0.11 0.09 0.19 0.07 0.10 

Commercial and industrial loans*........................... 0.64 0.37 0.43 0.68 0.64 0.62 0.60 0.47 0.60 0.63 1.18 

Loans to individuals............................................. 2.23 0.73 1.63 2.36 2.37 2.68 1.67 1.14 3.11 0.85 3.01 

Credit card loans............................................. 4.31 4.03 7.42 5.09 3.98 4.33 3.78 3.66 5.61 3.44 4.06 

Other loans to individuals................................. 0.94 0.57 0.53 0.93 1.08 1.10 0.99 0.80 0.51 0.75 1.14 

All other loans and leases (including farm)............... 0.20 N/A N/A 0.24 0.20 0.11 0.23 0.25 0.23 0.09 0.45 

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

Loans Outstanding (in billions) 

0.11 0.32 0.90 0.00 0.09 0.23 0.11 0.02 0.03 0.02 -0.04 

All real estate loans............................................. $1,659.4 $82.7 $323.6 $304.4 $948.8 $356.4 $552.8 $338.3 $128.8 $89.7 $193.3 

Construction and development........................... 157.3 6.9 35.2 35.0 80.1 16.5 58.2 30.9 13.6 12.0 26.1 

Commercial real estate.................................... 456.1 23.1 118.5 102.9 211.6 79.7 137.3 97.5 35.4 33.7 72.4 

Multifamily residential real estate........................ 60.1 1.8 10.9 12.4 35.0 15.5 16.1 12.7 3.9 2.7 9.2 

Home equity loans.......................................... 122.9 2.0 13.7 19.8 87.4 26.3 41.3 32.4 7.2 2.0 13.7 

Other 1-4 Family residential.............................. 797.7 38.2 131.9 130.0 497.6 189.2 290.2 156.1 58.3 35.6 68.2 

Commercial and industrial loans........................... 1,044.3 24.6 90.9 122.2 806.6 348.6 281.5 208.6 63.7 43.4 98.7 

Loans to individuals............................................. 584.4 19.7 64.2 96.0 404.6 216.7 122.2 77.7 51.5 32.9 83.4 

Credit card loans............................................. 228.7 0.7 10.0 33.1 184.9 106.8 29.9 8.7 26.8 1.2 55.3 

Other loans to individuals................................. 355.7 19.0 54.2 62.8 219.7 109.9 92.2 69.0 24.7 31.7 28.1 

All other loans and leases (including farm)............... 492.1 17.7 27.1 32.8 414.5 205.5 105.9 92.4 37.7 13.9 36.6 

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

Memo: Other Real Estate Owned (in millions) 

34.8 0.2 1.2 3.1 30.3 11.2 10.4 5.0 2.3 0.7 5.2 

All other real estate owned.................................... $2,817.3 $266.7 $658.8 $397.6 $1,494.3 $759.4 $905.4 $393.7 $201.2 $238.0 $319.6 

Construction and development........................... 214.2 22.3 92.9 39.5 59.5 40.5 94.3 22.0 14.7 19.2 23.5 

Commercial real estate.................................... 1,245.2 122.1 292.4 183.6 647.0 344.8 411.9 133.8 78.8 110.5 165.3 

Multifamily residential real estate........................ 53.0 8.4 25.0 11.3 8.3 9.7 7.1 8.6 6.7 9.4 11.4 

1-4 Family residential....................................... 1,036.8 84.3 215.9 156.0 580.6 172.9 382.8 218.9 75.2 77.8 109.2 

Farmland...................................................... 76.5 29.5 32.5 6.3 8.2 3.3 9.3 8.6 25.7 21.0 8.7 

Other real estate owned in foreign offices............ 191.6 0.0 0.1 0.8 190.6 188.2 0.0 1.8 0.0 0.0 1.6 

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

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

FDIC Quarterly Banking Profile 

Third Quarter 2000 7 FDIC-Insured Commercial Banks 
SAVINGS INSTITUTION PERFORMANCE—THIRD QUARTER, 2000 

n Industry Income Declines To $2.6 Billion 

n Higher Noninterest Expenses Produce Lower Earnings 

n Net Interest Margin Declines For Second Consecutive Quarter 

FDIC-insured savings institutions reported 

earnings of $2.6 billion for the third quarter, the 

second consecutive quarter that the industry’s 

earnings have declined. Quarterly net income was 

$186 million lower than the second quarter and 

$273 million lower than a year ago. Increases in 

operating expenses kept profits lower. Total 

noninterest expenses were $325 million higher 

than second quarter and $591 million higher than a 

year ago. Two savings institutions absorbed 

operations from outside the industry and costs 

associated with these acquisitions accounted for 

38 percent of the increase in noninterest expenses 

this quarter. Increases in noninterest income 

partially offset the rise in expenses, as total 

noninterest income improved by $161 million over 

the second quarter and by $564 million from a year 

ago. Fee income other than deposit service 

charges improved slightly over last quarter and 

substantially from a year ago. Net interest income 

declined by $13 million from last quarter, as 

narrower net interest margins outweighed a $26.4-

billion increase in interest-earning assets during 

the quarter. Overall efficiency was lower than in 

the second quarter of this year or the third quarter 

of 1999. The industry’s efficiency ratio— 

noninterest expense as a percentage of net 

QUARTERLY NET INCOME, 1996–2000 

$ Billion 

4 

3 

2 

1 

0 

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

2.5 2.6 

-0.0 

2.2 2.4 2.4 

2.0 

2.3 

2.6 

2.9 3.0 2.9 2.8 2.9 

2.0 

2.7 2.7 2.7 2.6 

1 

Securities and Other Gains/Losses, Net 

Net Operating Income 

1996 1997 1998 1999 2000 

interest income plus noninterest income—was 58 

percent this quarter compared to 56 percent last 

quarter and 55 percent a year ago. A higher 

percentage indicates lower efficiency since 

expenses are absorbing a higher proportion of 

revenues. Almost 10 percent of savings 

institutions were unprofitable in the third quarter 

and just 27 percent had a return on assets (ROA) 

of 1 percent or better. The quarterly average ROA 

for the industry was 0.86 percent this quarter, 

down from 0.95 percent last quarter and 1.00 

percent a year ago. 

Earnings through the first nine months of this year 

were $8.2 billion, $117 million lower than last year 

at this point. Higher loan loss provisions and lower 

gains on the sales of securities largely explain the 

decrease in earnings. Provisions for loan losses 

have increased by $303 million (26 percent) over 

last year. Gains on the sales of securities, at $452 

million, were nearly two-thirds lower than the $1.3 

billion thrifts registered in the first three quarters of 

1999. Also, increases in noninterest income 

outpaced growth in noninterest expenses through 

the first three quarters. Noninterest income was 

$1.4 billion (19 percent) higher than last year, while 

noninterest expense was $962 million higher (5 

percent). Net interest income was $251 million 

higher this year even with lower net interest 

margins because of the growth in earning assets. 

Although total earnings were close to last year’s 

level, the industry’s ROA of 0.94 percent was lower 

than the 1.01 percent in the same period of last 

year because assets have increased by 5 percent 

during the past 12 months. 

An inverted yield curve has put downward 

pressure on thrifts’ net interest margins. Rising 

short-term interest rates have led to higher funding 

costs. Funding costs rose 31 basis points during 

the quarter, while the yield on earning assets rose 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 Third Quarter 2000 
by 24 basis points. As a result, net interest 

margins declined by 7 basis points to 2.92 percent, 

the first time since 1991 that margins had fallen 

below 3 percent. Only savings institutions in the 

Southwest Region reported improved margins, 

from 3.07 percent last quarter to 3.12 percent this 

quarter. All other regions and size groups 

registered a decline in net interest margins. The 

recent decline in longer-term rates has not yet 

been fully reflected in thrifts’ average asset yields 

because repricing of the assets they hold tends to 

lag changes in interest rates. 

QUARTERLY NET INTEREST MARGINS, 

1996–2000 

Net Interest Margin (%) 

quarter. Because of loan growth, the industry’s 

noncurrent loan rate increased by only 1 basis 

point to 0.66 percent of total loans. Noncurrent 

commercial and industrial loans had a 1.39-

percent noncurrent rate, up by 13 basis points 

during the quarter. The noncurrent rate on credit 

card plans worsened to 1.33 percent, up by 10 

basis points. Real estate construction and land 

loans had a 5 basis point increase in the 

noncurrent rate to 0.79 percent. Each of these 

loan categories represented 3 percent or less of 

industry assets and thus the overall noncurrent 

rate showed little change. 

COVERAGE RATIO* AND RESERVE LEVELS, 

1996–2000 

$ Billions Coverage Ratio (%) 

1996 1997 1998 1999 2000 

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

2.5 

3.0 

3.5 

4.0 

2 2 2 2 1 

2.81 

3.27 

Assets > $1 Billion 

Assets < $1 Billion 

$0 

$5 

$10 50% 

100% 

150% 

$5.5 

$7.2 

132% 

Noncurrent Loans ($) 

Loan-Loss Reserves ($) 

Coverage Ratio (%) 

Profitability declined at savings institutions with 

assets of less than $100 million. The average 

annualized ROA was 0.51 percent this quarter, 

down from 0.66 percent last quarter and 0.70 

percent a year ago. A 5-basis-point decline in net 

interest margins and an 18-percent increase in 

noninterest expenses accounted for much of the 

decline in profitability. The combination of these 

trends led to lower efficiency. The efficiency ratio 

worsened to 84 percent from 78 percent in the 

second quarter at these institutions. Over 17 

percent of this group were unprofitable in the third 

quarter and less than half (48 percent) had 

improved earnings from a year ago. 

The increase in reserves for loan losses did not 

keep pace with the increase in noncurrent loans for 

the first time in over a year. Reserves for loan 

losses increased by $239 million while noncurrent 

loans rose by $253 million during the quarter. The 

coverage ratio—loan loss reserves to noncurrent 

loans—declined to $1.32 for each dollar of 

noncurrent loans from $1.34 at the beginning of the 

1 2 3 4 1 2 3 4 1 2 3 4 1 2 34 1 2 3 

1996 1997 1998 1999 2000 

*Loan-loss reserves to noncurrent loans. 

Industry assets grew by $25 billion during the third 

quarter. All loan categories increased, but a $16-

billion increase in home mortgages accounted for 

the bulk of the asset growth. The only major asset 

category to show a reduction was securities, which 

were down by $2 billion. Deposits increased by 

$13.6 billion and other borrowed funds rose by 

$6.2 billion. One third of the increase in deposits 

was accounted for by one institution that 

completed the purchase of a large branch network 

from a commercial bank during the quarter. 1 

Equity capital increased by $4 billion during the 

quarter to 8.32 percent of assets, up from 8.16 

percent last quarter. Capital infusions from outside 

1 Sovereign Bank from Wyomissing, Pennsylvania completed 

a purchase of branches with $4.3 billion in deposits from 

FleetBoston in July. 

FDIC Quarterly Banking Profile 

Third Quarter 2000 9 FDIC-Insured Savings Institutions 
RISK-BASED CAPITAL RATIOS, 

1994–2000 Ratio (%) 

18 

16 

14 

12 

10 

8 

6 

4 

1 2 341 2 3 4 1 2 3 4 1 2 341 2 341 2 34 1 23 

Tier 1 Risk-Based Capital 

14.19% 

Equity to Assets 

Core Capital (Leverage) 

Total Risk-Based Capital 

7.93% 

7.65% 

15.53% 

12.76% 

8.32% 

7.79% 

13.95% 

1994 1995 1996 1997 1998 1999 2000 

the industry, combined with earnings retained by 

the industry, and a decline in the losses on 

available-for-sale securities all contributed to the 

rise in capital. A few holding companies injected 

new capital into their thrift operations during the 

quarter. Earnings retained by the industry were up 

this quarter to $1.2 billion over last quarter’s $1.0 

billion. With lower long-term interest rates, the 

value of thrifts’ securities portfolios improved. The 

unrealized loss on available-for-sale securities, 

which is subtracted from equity capital, declined by 

$1.6 billion during the quarter. The core capital 

(leverage) ratio, which does not include the loss on 

available-for-sale securities, improved by a smaller 

amount to 7.79 percent, up from 7.77 percent. 

There were 1,613 savings institutions at the end of 

September, down from 1,624 at the end of June. 

Additions to the industry included 6 de novo 

institutions, 1 new charter issued to absorb another 

charter, 1 uninsured institution obtaining insurance, 

and 1 charter transfer from a commercial bank 

charter. There were 8 thrifts absorbed by other 

thrifts during the quarter. Commercial banks 

absorbed 9 thrifts with $2.4 billion in assets and 3 

thrifts with $901 million in assets converted to 

commercial bank charters during the quarter. 

These additions, transfers and mergers add up to 

a net decline of 11 savings institutions. Other 

structural changes include the demutualization of 5 

thrifts with $667 million in assets. Savings 

institutions considered “problem” cases due to 

examination ratings declined to 15 from 16 last 

quarter. The assets of these “problem” institutions 

declined to $7.3 billion from $7.6 billion. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Third Quarter 2000 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

Return on equity (%)............................................. 

Core capital (leverage) ratio (%).............................. 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 

Net charge-offs to loans (%).................................... 

Asset growth rate (%)............................................. 

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

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

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

Percentage of unprofitable institutions (%).................. 

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

Assets of problem institutions (in billions).................. 

Number of failed/assisted institutions........................ 

2000** 1999** 1999 1998 1997 1996 1995 

0.94 

11.45 

7.79 

0.54 

0.17 

5.35 

2.98 

6.56 

1,613 

8.68 

15 

$7 

1 

1.01 

11.73 

7.95 

0.61 

0.16 

8.19 

3.08 

7.86 

1,649 

7.40 

11 

$4 

1 

1.00 

11.72 

7.86 

0.58 

0.17 

5.57 

3.10 

16.61 

1,641 

8.29 

13 

$6 

1 

1.01 

11.34 

7.85 

0.72 

0.22 

6.06 

3.10 

7.68 

1,689 

5.27 

15 

$6 

0 

0.93 0.70 0.77 

10.84 8.41 9.40 

7.95 7.76 7.80 

0.95 1.09 1.20 

0.25 0.32 0.34 

-0.28 0.32 1.70 

3.23 3.22 3.09 

19.98 -13.92 13.81 

1,780 1,926 2,030 

4.10 12.05 5.86 

21 35 49 

$2 $7 $14 

0 1 1 

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

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

(dollar figures in millions) 

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

Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter %Change 

2000 2000 1999 99:3-00:3 

1,613 1,624 1,649 -2.2 

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

CONDITION DATA

245,136 242,733 245,354 -0.1 

 Total assets..................................................................... $1,204,277 $1,179,309 $1,143,116 5.4

 Loans secured by real estate............................................. 723,121 701,587 676,063 7.0 

1-4 Family Residential................................................... 574,498 558,502 542,572 5.9 

Multifamily residential property.......................................... 56,150 54,967 54,242 3.5 

Commercial real estate................................................... 58,641 56,681 51,411 14.1 

Construction, development, and land................................. 33,832 31,437 27,838 21.5

 Commercial & industrial loans.......................................... 33,131 31,129 24,481 35.3

 Loans to individuals......................................................... 63,242 61,644 60,517 4.5

 Other loans & leases...................................................... 5,630 4,864 4,392 28.2

 Less: Unearned income & contra accounts***........................ 202 205 204 -1.0

 Total loans & leases......................................................... 824,922 799,019 765,248 7.8

 Less: Reserve for losses................................................... 7,244 7,005 7,013 3.3

 Net loans & leases............................................................ 817,678 792,015 758,235 7.8

 Securities........................................................................ 276,762 278,807 283,757 -2.5

 Other real estate owned................................................... 1,071 1,110 1,227 -12.7

 Goodwill and other intangibles............................................. 16,661 15,782 15,509 7.4

 All other assets............................................................... 92,105 91,596 84,387 9.1 

Total liabilities and capital................................................... 1,204,277 1,179,309 1,143,116 5.4

 Deposits........................................................................ 729,571 716,010 697,781 4.6

 Other borrowed funds...................................................... 354,796 348,597 329,591 7.6

 Subordinated debt............................................................ 2,848 2,834 3,316 -14.1

 All other liabilities............................................................ 16,902 15,679 15,898 6.3

 Equity capital.................................................................. 100,160 96,188 96,529 3.8 

Loans and leases 30-89 days past due.................................... 7,227 6,311 6,540 10.5 

Noncurrent loans and leases................................................ 5,474 5,221 5,721 -4.3 

Restructured loans and leases............................................. 1,520 1,559 1,900 -20.0 

Direct and indirect investments in real estate........................... 641 677 573 12.0 

Mortgage-backed securities................................................ 208,830 210,773 213,553 -2.2 

Earning assets.................................................................. 1,116,982 1,090,629 1,063,335 5.0 

FHLB Advances (Source: TFR and FHFB).............................. 247,773 250,093 213,754 15.9 

Unused loan commitments................................................... 247,035 208,779 176,766 39.8 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

First Three First Three 3rd Quarter 3rd Quarter %Change 

Qtrs 2000 Qtrs 1999 %Change 2000 1999 99:3-00:3 

$62,349 $56,077 11.2 $21,947 $19,310 13.7 

38,349 32,328 18.6 13,897 11,222 23.8

24,000 23,749 1.1 8,050 8,088 -0.5 

1,455 1,152 26.4 528 361 46.0 

8,599 7,227 19.0 3,054 2,490 22.6 

19,028 18,066 5.3 6,653 6,062 9.7 

452 1,317 -65.7 122 276 -55.7 

4,351 4,756 -8.5 1,460 1,596 -8.5 

-17 -4 N/M -25 -1 N/M

8,200 8,317 -1.4 2,561 2,834 -9.7 

1,017 886 14.7 326 282 15.5 

4,480 4,003 11.9 1,328 1,755 -24.3

7,918 7,430 6.6 2,504 2,651 -5.6 

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

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

FDIC Quarterly Banking Profile 

Third Quarter 2000 11 FDIC-Insured Savings Institutions 
TABLE III-B. First Three Quarters 2000, FDIC-Insured Savings Institutions 

FIRST THREE QUARTERS Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,613 633 834 108 38 635 214 413 126 111 114 

Total assets (in billions).................................... $1,204.3 $31.1 $248.9 $216.8 $707.5 $397.0 $81.7 $184.4 $44.0 $81.3 $415.7 

Total deposits (in billions)................................. 729.6 24.2 186.5 142.4 376.6 271.9 56.1 124.0 26.6 47.4 203.6 

Net income (in millions).................................... 8,200.5 112.4 1,443.3 1,507.2 5,137.5 2,662.5 360.0 1,290.1 212.4 614.3 3,061.2 

% of unprofitable institutions.............................. 8.7 16.1 4.1 3.7 0.0 6.1 10.7 9.9 13.5 7.2 10.5 

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

Performance ratios (annualized, %) 

59.0 57.2 60.1 59.3 65.8 63.8 56.5 56.9 52.4 56.8 54.4 

Yield on earning assets.................................... 7.75 7.69 7.64 7.85 7.75 7.61 7.99 8.04 7.65 8.21 7.62 

Cost of funding earning assets........................... 4.76 4.18 4.32 4.71 4.97 4.30 4.89 4.88 4.88 5.10 5.06 

Net interest margin.......................................... 2.98 3.50 3.32 3.14 2.78 3.31 3.10 3.16 2.77 3.10 2.56 

Noninterest income to earning assets.................. 1.07 2.24 0.69 0.97 1.18 0.85 1.26 1.71 0.83 1.22 0.95 

Noninterest expense to earning assets.................. 2.36 4.77 2.67 2.45 2.12 2.52 3.04 2.90 2.23 2.58 1.82 

Credit loss provision to assets*........................... 0.17 0.08 0.11 0.24 0.17 0.11 0.37 0.39 0.14 0.26 0.07 

Net operating income to assets........................... 0.91 0.49 0.76 0.88 1.00 0.91 0.55 0.91 0.72 1.01 0.99 

Return on assets............................................. 0.94 0.49 0.80 0.95 1.01 0.92 0.63 0.97 0.67 1.04 1.03 

Return on equity............................................. 11.45 3.76 7.67 11.02 14.22 9.61 6.99 11.33 7.06 12.80 15.65 

Net charge-offs to loans and leases..................... 0.17 0.05 0.08 0.33 0.17 0.12 0.27 0.28 0.16 0.23 0.14 

Credit loss provision to net charge-offs.................. 143.11 250.71 199.27 111.45 151.38 143.55 193.09 180.79 126.59 165.83 77.26 

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

Condition Ratios (%) 

56.49 82.45 65.84 57.81 50.90 57.90 68.91 58.10 60.32 58.64 50.02 

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

Loss allowance to: 

92.75 93.86 93.85 92.94 92.26 92.28 93.53 91.53 93.54 92.80 93.49 

Loans and leases.......................................... 0.88 0.71 0.83 1.03 0.86 0.99 0.82 0.84 0.59 0.86 0.85 

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

Noncurrent assets plus 

132.34 94.00 135.74 99.32 151.03 132.08 128.52 110.77 103.98 99.21 164.41 

other real estate owned to assets..................... 0.54 0.61 0.51 0.85 0.46 0.56 0.58 0.68 0.60 0.73 0.42 

Noncurrent RE loans to RE loans........................ 0.62 0.71 0.60 1.03 0.51 0.74 0.58 0.64 0.54 0.84 0.50 

Equity capital ratio............................................. 8.32 13.11 10.51 8.68 7.22 9.79 8.74 8.52 9.07 8.13 6.70 

Core capital (leverage) ratio.............................. 7.79 12.85 10.22 8.17 6.61 8.82 8.54 7.90 8.54 8.08 6.50 

Tier 1 risk-based capital ratio.............................. 12.76 23.45 17.18 13.11 10.74 14.30 14.09 12.17 15.04 11.81 11.23 

Total risk-based capital ratio.............................. 13.95 24.44 18.32 14.22 11.97 15.61 15.62 13.31 15.76 12.95 12.30 

Gross real estate assets to gross assets............... 77.05 69.51 71.74 72.25 80.73 70.10 73.36 73.43 79.67 66.05 87.91 

Gross 1-4 family mortgages to gross assets......... 47.41 50.14 46.51 38.82 50.24 41.72 46.65 54.15 53.49 33.57 52.07 

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

Structural Changes (YTD) 

112.08 87.10 91.96 100.19 128.14 92.75 101.38 113.73 122.76 119.70 136.65 

New Charters................................................ 24 22 2 0 0 13 2 2 4 0 3 

Thrifts absorbed by mergers........................... 53 23 22 7 1 16 12 17 3 3 2 

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

PRIOR FIRST THREE QUARTERS**

 (The way it was...) 

1 1 0 0 0 0 1 0 0 0 0 

Number of institutions...............................1999 1,649 671 832 111 35 637 229 429 127 114 113

 ...............................................1997 1,813 789 868 121 35 693 263 466 137 122 132

 ...............................................1995 2,060 926 973 126 35 765 313 527 157 138 160 

Total assets (in billions).............................1999 $1,143.1 $34.2 $243.6 $224.5 $640.8 $374.5 $73.4 $181.9 $40.4 $73.7 $399.2

 ................................................1997 1,021.9 41.0 255.5 246.8 478.7 343.4 65.1 172.5 34.6 64.7 341.7

 ................................................1995 1,024.7 47.4 281.6 266.9 428.7 346.7 74.4 167.9 52.8 75.0 307.9 

Return on assets (%)................................1999 1.01 0.70 0.90 1.04 1.05 1.02 0.85 1.05 0.82 1.16 1.00

 ................................................1997 0.89 0.80 0.97 1.02 0.80 1.00 0.92 0.97 1.01 0.88 0.74

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

Net charge-offs to loans & leases (%) 

0.80 0.69 0.83 0.84 0.76 0.90 0.88 0.92 1.01 0.93 0.54 

 ................................................1999 0.16 0.07 0.09 0.28 0.15 0.10 0.23 0.24 0.15 0.21 0.16

 ................................................1997 0.29 0.10 0.14 0.42 0.32 0.28 0.46 0.23 0.06 0.38 0.30

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

Noncurrent assets plus 

0.34 0.14 0.16 0.38 0.45 0.39 0.15 0.14 0.17 0.21 0.48 

OREO to assets (%)***.....................1999 0.61 0.70 0.56 0.91 0.52 0.65 0.54 0.67 0.52 0.91 0.51

 ................................................1997 1.02 0.88 0.88 1.44 0.89 1.24 0.91 0.65 0.61 1.03 1.04

 .................................................1995 1.21 1.02 1.08 1.38 1.22 1.51 1.05 0.52 0.59 1.04 1.44 

Equity capital ratio (%)..............................1999 8.44 12.36 10.49 8.68 7.38 9.50 9.85 8.91 10.02 8.37 6.84

 ................................................1997 8.63 11.93 10.31 8.69 7.43 9.47 9.92 9.29 9.26 8.41 7.19

 ................................................1995 8.31 10.62 9.60 8.43 7.12 8.87 8.99 9.08 8.29 7.47 7.30 

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

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

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 12 Third Quarter 2000 
TABLE IV-B. THIRD Quarter 2000, FDIC-Insured Savings Institutions 

THIRD QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,613 633 834 108 38 635 214 413 126 111 114 

Total assets (in billions).................................... $1,204.3 $31.1 $248.9 $216.8 $707.5 $397.0 $81.7 $184.4 $44.0 $81.3 $415.7 

Total deposits (in billions)................................. 729.6 24.2 186.5 142.4 376.6 271.9 56.1 124.0 26.6 47.4 203.6 

Net income (in millions).................................... 2,560.7 39.4 451.6 499.5 1,570.2 821.5 96.8 429.9 34.3 223.6 954.6 

% of unprofitable institutions.............................. 9.8 17.4 4.7 5.6 7.9 6.3 15.4 11.1 14.3 7.2 11.4 

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

Performance Ratios (annualized, %) 

52.4 47.7 55.6 51.9 63.2 55.7 50.5 48.9 47.6 55.0 53.5 

Yield on earning assets.................................... 7.96 7.86 7.77 7.99 8.03 7.76 8.16 8.26 7.81 8.48 7.90 

Cost of funding earning assets........................... 5.04 4.41 4.52 4.94 5.29 4.47 5.21 5.18 5.16 5.35 5.43 

Net interest margin.......................................... 2.92 3.45 3.25 3.06 2.74 3.29 2.95 3.09 2.65 3.12 2.47 

Noninterest income to earning assets.................. 1.11 2.46 0.69 1.00 1.23 0.89 1.22 1.79 0.77 1.23 1.00 

Noninterest expense to earning assets.................. 2.41 4.99 2.67 2.46 2.19 2.62 3.07 2.92 2.36 2.60 1.84 

Credit loss provision to assets........................... 0.18 0.09 0.11 0.21 0.19 0.12 0.35 0.45 0.19 0.20 0.08 

Net operating income to assets........................... 0.84 0.45 0.70 0.86 0.90 0.86 0.40 0.87 0.49 1.07 0.89 

Return on assets............................................. 0.86 0.51 0.73 0.93 0.90 0.83 0.48 0.94 0.31 1.11 0.94 

Return on equity............................................. 10.44 3.92 7.04 10.75 12.61 8.60 5.53 11.10 3.41 13.67 14.25 

Net charge-offs to loans and leases..................... 0.16 0.02 0.08 0.23 0.17 0.14 0.32 0.27 0.19 0.20 0.08 

Credit loss provision to net charge-offs*............... 162.11 584.19 209.91 136.89 162.16 132.11 157.15 216.36 136.34 142.74 138.59 

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

Structural Changes (QTR) 

57.94 83.78 66.90 58.95 52.67 59.62 72.81 58.30 67.34 58.57 51.14 

New charters................................................ 7 6 1 0 0 4 0 0 1 0 2 

Thrifts absorbed by mergers........................... 17 8 9 0 0 7 3 5 0 1 1 

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

PRIOR THIRD QUARTERS**

 (The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%)................................1999 1.00 0.70 0.86 1.04 1.06 1.08 0.71 0.99 0.81 1.19 0.98

 .................................................1997 0.79 0.83 0.95 0.86 0.66 1.01 0.93 0.90 1.04 0.41 0.53

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

Net charge-offs to loans & leases (%)

0.87 0.78 0.87 0.96 0.83 0.95 0.94 0.94 1.04 1.16 0.64 

 .................................................1999 0.15 0.05 0.09 0.25 0.14 0.09 0.25 0.21 0.14 0.23 0.14

 .................................................1997 0.29 0.10 0.17 0.32 0.36 0.21 0.42 0.26 0.09 0.35 0.37

 .................................................1995 0.34 0.08 0.18 0.43 0.42 0.42 0.18 0.24 0.15 0.26 0.41 

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

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

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

Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

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

FDIC Quarterly Banking Profile 

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

September 30, 2000 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate........................... 0.78 1.53 0.91 0.79 0.70 0.66 0.91 0.94 1.42 1.07 0.67 

Construction, development, and land.................. 1.22 1.44 1.15 1.07 1.33 0.62 1.18 1.64 2.49 1.21 1.11 

Commercial real estate.................................... 0.61 1.06 0.69 0.85 0.31 0.46 1.17 1.17 1.40 0.56 0.26 

Multifamily residential real estate........................ 0.20 0.75 0.32 0.19 0.17 0.16 0.57 0.36 0.22 0.35 0.18 

Home equity loans.......................................... 0.42 0.46 0.51 0.38 0.38 0.61 0.19 0.48 0.34 0.04 0.21 

Other 1-4 Family residential.............................. 0.85 1.66 1.00 0.87 0.76 0.75 0.90 0.94 1.41 1.20 0.76 

Commercial and industrial loans........................... 1.27 1.89 1.60 1.39 1.01 1.23 1.53 1.49 2.15 0.96 1.08 

Loans to individuals............................................. 1.82 2.29 1.54 1.53 1.95 1.87 2.59 1.90 1.49 0.72 2.39 

Credit card loans............................................. 1.82 0.36 1.72 4.29 1.65 2.03 3.14 2.33 2.53 0.58 2.16 

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

Percent of Loans Noncurrent* 

1.81 2.40 1.54 1.24 2.13 1.84 2.50 1.60 1.43 0.83 2.42 

All real estate loans............................................. 0.62 0.71 0.60 1.03 0.51 0.74 0.58 0.64 0.54 0.84 0.50 

Construction, development, and land.................. 0.79 0.96 0.94 1.03 0.54 0.69 0.89 1.04 1.46 0.07 1.33 

Commercial real estate.................................... 0.82 0.78 0.72 1.17 0.64 0.95 0.94 0.82 0.77 0.68 0.56 

Multifamily residential real estate........................ 0.29 0.68 0.24 0.66 0.14 0.40 0.33 0.33 0.20 2.38 0.09 

Home equity loans.......................................... 0.19 0.16 0.19 0.26 0.17 0.23 0.06 0.29 0.07 0.03 0.11 

Other 1-4 Family residential.............................. 0.64 0.70 0.59 1.10 0.55 0.76 0.54 0.64 0.46 1.03 0.54 

Commercial and industrial loans........................... 1.39 1.58 0.97 1.70 1.38 1.09 1.26 2.01 1.17 2.32 1.23 

Loans to individuals............................................. 0.78 0.88 0.53 0.70 0.86 0.62 0.77 1.32 0.52 0.42 0.53 

Credit card loans............................................. 1.33 0.30 0.86 2.17 1.29 1.28 1.68 1.78 1.19 0.68 1.13 

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

Percent of Loans Charged-off (net, YTD) 

0.59 0.91 0.51 0.54 0.61 0.52 0.62 1.00 0.48 0.21 0.43 

All real estate loans............................................. 0.03 0.01 0.02 0.06 0.03 0.03 0.03 0.06 0.05 0.03 0.03 

Construction, development, and land.................. 0.07 0.01 0.11 0.09 0.02 -0.01 0.08 0.20 0.05 0.03 0.07 

Commercial real estate.................................... 0.01 -0.01 0.03 0.08 -0.06 0.02 0.00 0.05 0.09 0.01 -0.03 

Multifamily residential real estate........................ -0.03 0.01 0.02 -0.03 -0.04 0.00 -0.02 0.04 0.00 0.08 -0.07 

Home equity loans.......................................... 0.07 0.08 0.03 0.09 0.09 0.10 0.11 0.04 0.16 0.03 0.06 

Other 1-4 Family residential.............................. 0.04 0.01 0.02 0.06 0.04 0.03 0.03 0.05 0.05 0.03 0.05 

Commercial and industrial loans........................... 0.69 0.02 0.52 1.14 0.58 0.50 2.42 0.55 1.73 0.14 0.62 

Loans to individuals............................................. 1.53 0.51 0.62 2.73 1.44 0.92 1.15 1.90 0.75 1.05 3.37 

Credit card loans............................................. 3.46 1.15 3.19 15.04 2.52 2.85 3.49 2.85 5.69 1.77 13.92 

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

Loans Outstanding (in billions) 

0.85 0.49 0.49 1.34 0.81 0.59 0.75 1.29 0.50 0.46 1.39 

All real estate loans............................................. $723.1 $19.0 $154.9 $123.5 $425.6 $216.8 $48.0 $118.8 $29.5 $43.0 $266.9 

Construction, development, and land.................. 33.8 1.0 9.2 9.0 14.6 6.6 4.9 5.4 2.0 8.4 6.6 

Commercial real estate.................................... 58.3 1.7 20.0 16.2 20.4 27.4 3.9 7.2 2.9 5.2 11.8 

Multifamily residential real estate........................ 56.1 0.5 9.1 13.5 33.0 16.0 0.9 5.6 1.0 1.9 30.7 

Home equity loans.......................................... 21.8 0.4 5.4 4.1 11.8 7.7 2.1 5.6 0.6 0.7 5.0 

Other 1-4 Family residential.............................. 552.7 15.2 111.1 80.6 345.8 159.0 36.3 94.9 23.1 26.7 212.7 

Commercial and industrial loans........................... 33.1 0.7 7.0 7.9 17.5 16.1 2.9 4.4 1.2 3.8 4.7 

Loans to individuals............................................. 63.2 1.5 10.4 11.5 39.8 19.5 6.1 17.1 2.0 10.2 8.3 

Credit card loans............................................. 16.3 0.1 0.5 1.1 14.7 2.6 0.9 7.0 0.1 4.6 1.2 

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

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

46.9 1.4 9.9 10.4 25.2 17.0 5.2 10.1 1.9 5.6 7.1 

All other real estate owned................................. $1,071.1 $30.7 $227.5 $359.8 $453.1 $323.8 $107.4 $176.7 $79.4 $101.6 $282.3 

Construction, development, and land.................. 175.1 3.0 38.3 32.3 101.5 13.5 64.6 17.9 22.1 13.2 43.9 

Commercial real estate.................................... 269.5 5.6 68.5 145.3 50.0 122.6 14.5 31.0 32.2 36.6 32.6 

Multifamily residential real estate........................ 58.4 0.4 12.4 34.3 11.3 20.6 0.7 8.4 0.3 15.8 12.5 

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

Troubled Real Estate Asset Rates*** 

(% of total RE assets) 

601.0 22.1 112.6 158.5 307.8 177.9 37.1 121.7 27.2 37.4 199.7 

All real estate loans............................................. 0.77 0.87 0.74 1.32 0.62 0.88 0.81 0.79 0.81 1.08 0.61 

Construction, development, and land.................. 1.30 1.24 1.35 1.38 1.23 0.89 2.19 1.37 2.54 0.23 1.99 

Commercial real estate.................................... 1.28 1.09 1.06 2.07 0.89 1.40 1.31 1.24 1.88 1.38 0.85 

Multifamily residential real estate........................ 0.39 0.77 0.38 0.91 0.17 0.53 0.41 0.48 0.23 3.17 0.13 

1-4 family residential....................................... 0.73 0.83 0.67 1.24 0.62 0.84 0.61 0.74 0.57 1.13 0.62 

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

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

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

FDIC Quarterly Banking Profile 

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

n BIF Reserve Ratio Climbs To 1.36 Percent As Fund Surpasses $30 Billion 

n SAIF Reserve Ratio Gains 2 Basis Points To 1.45 Percent 

n Insured Deposits Continue Relatively Strong Growth In The Third Quarter 

Deposits insured by the FDIC grew by 1.1 percent 

during the third quarter of 2000, reaching $2.992 

trillion as of September 30. For the first three 

quarters of 2000, total estimated insured deposits 

grew by 4.3 percent. Deposits insured by the Bank 

Insurance Fund (BIF) increased by 1.3 percent 

during the third quarter, to $2.25 trillion, and 4.4 

percent since the beginning of 2000. Deposits 

insured by the Savings Association Insurance Fund 

(SAIF) grew more slowly, rising 0.3 percent in the 

third quarter, to $741 billion, and 4.1 percent on a 

year-to-date basis. The year-to-date growth rates 

for BIF- and SAIF-insured deposits, individually and 

collectively, are higher than any of the full-year 

growth rates of insured deposits since the 1980s. 

Insured-deposit growth was spurred primarily by 

increases in fully insured brokered deposits, which 

grew by 17.8 percent during the third quarter and 

59.5 percent for the first three quarters of 2000. 

Despite the strong growth of insured deposits in the 

third quarter and throughout 2000, their growth 

rates lagged behind those of total assets, total 

deposits and domestic deposits, indicating that 

insured institutions still rely increasingly on 

alternative, uninsured funding sources. Moreover, 

just one-third ($10.3 billion) of the third-quarter 

growth of insured deposits ($31.9 billion) was in 

nonbrokered accounts, perhaps reflecting the 

difficulty of attracting and retaining new retail 

deposits. 

The balance of the BIF surpassed $30 billion for the 

first time, rising to $30.6 billion on September 30 

(unaudited) from $29.8 billion on June 30. The 

fund’s balance was boosted by a $423-million 

reduction in reserves for anticipated failures, as 

some banks previously considered likely to fail 

improved their condition and reduced the risks to 

the BIF. The growth of the fund caused the BIF 

reserve ratio to increase by 2 basis points, to 1.36 

percent of insured deposits. 

The reserve ratio of the SAIF also gained 2 basis 

points in the third quarter, rising to 1.45 percent on 

September 30.1 The fund’s balance closed the third 

quarter at $10.7 billion (unaudited), having grown 

by $168 million during the three-month period. The 

SAIF also recorded a relatively modest negative 

loss provision of $8 million for the quarter. 

During the third quarter, two BIF members failed, 

with total assets of $100 million. This brought the 

total number of BIF failures for the year to four and 

failed assets to $224 million. There were no SAIFmember failures in the third quarter, and for the first 

three quarters of the year just one SAIF member, 

with total assets of $30 million, failed. As of 

September 30, contingent liabilities for anticipated 

failures stood at $147 million for the BIF and $89 

million for the SAIF. 

1 The SAIF reserve ratio for June 30, 2000, was revised downward 

from 1.44 percent to 1.43 percent due to amended deposit figures. 

PERCENTAGE CHANGE IN INSURED DEPOSITS, 

1990–2000 Percent Change 

0.0 

-6.0 

-6.5 -6.0 

-4.7 

-0.5 

2.7 

1.0 

2.7 

0.3 

4.1 

3.0 

1.5 

-0.6 

-2.0 

-0.6 

3.0 2.8 2.4 

4.2 

0.8 

4.4 

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000* 

* Through September 

Bank Insurance Fund (BIF) 

Savings Association 

 Insurance Fund (SAIF) 

FDIC Quarterly Banking Profile 

Third Quarter 2000 15 All FDIC-Insured Institutions 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

Number of institutions reporting.............................. 9,988 10,270 10,221 10,463 10,922 11,453 11,970 

Total assets......................................................... $6,655,635 $7,268,361 $6,883,702 $6,530,947 $6,041,127 $5,607,333 $5,338,419 

Total deposits...................................................... 4,749,152 4,405,285 4,538,088 4,386,298 4,125,862 3,925,059 3,769,481 

Number of problem institutions................................. 90 80 79 84 92 117 193 

Assets of problem institutions (in billions).................. $19 $8 $10 $11 $6 $12 $31 

Number of failed/assisted institutions..................... 5 ... 6 8 3 1 6 8 

Assets of failed/assisted institutions (in billions)............ $0.25 $1.38 $1.56 $0.37 $0.03 $0.22 $1.21 

** As of September 30. 

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

(dollar figures in millions) 

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

Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter %Change 

2000 2000 1999 99:3-00:3 

 9,988 10,101 10,270 -2.7 

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

CONDITION DATA 

1,899,998 1,904,545 1,878,634 1.1 

Total assets..................................................................... $7,268,361 $7,162,512 $6,655,635 9.2

 Loans secured by real estate............................................. 2,382,520 2,328,508 2,107,613 13.0 

1-4 Family residential...................................................... 1,495,049 1,462,232 1,331,889 12.3 

Home equity loans...................................................... 144,627 136,530 115,404 25.3 

Multifamily residential property.......................................... 116,209 114,628 104,556 11.1 

Commercial real estate................................................... 514,447 503,718 452,751 13.6 

Construction, development, and land................................. 191,099 181,836 155,324 23.0 

Other real estate loans................................................... 65,717 66,095 63,093 4.2 

Commercial & industrial loans 1,077,454 1,065,533 972,315 10.8

 Loans to individuals......................................................... 647,654 629,781 591,102 9.6

 Credit cards & related plans.......................................... 245,078 234,302 202,775 20.9

 Other loans & leases...................................................... 497,751 482,664 460,166 8.2

 Less: Unearned income & contra accounts........................ 3,248 3,411 3,864 -15.9

 Total loans & leases......................................................... 4,602,131 4,503,075 4,127,332 11.5

 Less: Reserve for losses................................................... 69,776 68,935 65,446 6.6 

Net loans and leases......................................................... 4,532,355 4,434,140 4,061,886 11.6 

Securities........................................................................ 1,337,922 1,325,331 1,319,415 1.4 

Other real estate owned...................................................... 3,888 3,891 4,147 -6.2 

Goodwill and other intangibles............................................. 121,177 118,081 102,560 18.2 

All other assets.................................................................. 1,273,019 1,281,068 1,167,627 9.0 

Total liabilities and capital................................................... 7,268,359 7,162,512 6,655,635 9.2

 Deposits....................................................................... 4,749,152 4,689,914 4,405,285 7.8

 Other borrowed funds...................................................... 1,482,139 1,477,175 1,303,188 13.7

 Subordinated debt............................................................ 87,359 85,050 79,060 10.5

 All other liabilities............................................................ 328,354 310,757 302,680 8.5

 Equity capital.................................................................. 621,355 599,616 565,422 9.9 

Loans and leases 30-89 days past due.................................... 50,413 45,725 45,940 9.7 

Noncurrent loans and leases................................................ 44,324 41,875 38,693 14.6 

Restructured loans and leases............................................. 3,268 2,674 3,213 1.7 

Direct and indirect investments in real estate........................... 957 998 857 11.7 

Mortgage-backed securities................................................ 657,791 663,454 668,810 -1.6 

Earning assets.................................................................. 6,371,698 6,271,107 5,829,971 9.3 

FHLB Advances (Source: TFR and FHFB).............................. 423,332 428,657 357,801 18.3 

Unused loan commitments................................................... 4,575,629 4,384,022 4,004,700 14.3 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

First Three First Three 3rd Quarter 3rd Quarter %Change 

Qtrs 2000 Qtrs 1999 %Change 2000 1999 99:3-00:3 

$378,525 $328,544 15.2 $132,066 $111,797 18.1 

202,215 160,822 25.7 72,704 54,788 32.7

176,311 167,722 5.1 59,362 57,009 4.1 

21,227 16,862 25.9 7,289 5,734 27.1 

121,811 113,324 7.5 42,319 39,462 7.2 

179,650 168,420 6.7 60,303 56,073 7.5 

-2,032 1,827 N/M -591 78 N/M 

33,574 35,021 -4.1 11,643 12,530 -7.1 

-1 -38 N/M -22 -1 N/M

61,638 62,532 -1.4 21,833 22,212 -1.7 

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

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 16 Third Quarter 2000 
 

 

 

 

 

TABLE III-C. Selected Insurance Fund Indicators* 

(dollar figures in millions) 

Bank Insurance Fund 

Reserve ratio (%).....................................................................

Fund balance (unaudited).........................................................

Estimated insured deposits.........................................................

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

BIF-members........................................................................

Assessment base.....................................................................

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

BIF-members........................................................................

Savings Association Insurance Fund 

Reserve ratio (%).....................................................................

Fund balance (unaudited).........................................................

Estimated insured deposits.........................................................

BIF-member Oakars...............................................................

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

Other SAIF members............................................................

Assessment base.....................................................................

BIF-member Oakars...............................................................

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

Other SAIF members............................................................

Preliminary 

3rd Quarter 

2000 

2nd Quarter 

2000 

3rd Quarter 

1999 

%Change 

99:3-00:3 

 1.36 1.34 1.39 -2.2 

 $30,555 $29,780 $29,499 3.6 

 2,251,714 2,222,349 2,129,409 5.7 

 57,167 51,620 42,521 34.4 

 2,194,547 2,170,729 2,086,888 5.2 

 3,186,217 3,136,330 2,972,298 7.2 

 58,139 52,514 43,547 33.5 

 3,128,078 3,083,815 2,928,751 6.8 

 1.45 1.43 1.44 0.7 

 $10,706 $10,538 $10,205 4.9 

 740,518 737,962 710,454 4.2 

 291,834 288,593 267,292 9.2 

 73,484 72,591 68,374 7.5 

 375,199 376,778 374,789 0.1 

 806,780 795,666 760,231 6.1 

 292,262 289,267 267,855 9.1 

 87,234 84,895 78,378 11.3 

 427,284 421,504 413,997 3.2 

Insurance Fund Reserve Ratios* Fund Balances and Insured Deposits* 

Percent of Insured Deposits ($Millions) 

BIF SAIF 

Target 

Ratio 

12/94 12/95 12/96 12/97 12/98 12/99 3/00 6/00 9/00 

1.15 

1.30 1.34 1.38 1.39 1.36 1.37 1.35 1.34 1.36 

0.28 

0.47 

1.30 

1.37 

1.44 1.44 1.43 1.45 

BIF BIF-Insured SAIF SAIF-Insured 

Balance Deposits Balance Deposits 

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

1.25 

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

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

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

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

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

3/00 29,739 2,196,283 10,435 723,534 

6/00 29,780 2,222,349 10,538 737,962 

0.00 

9/00 30,555 2,251,714 10,706 740,518 

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

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

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

TABLE IV-C. Closed/Assisted Institutions 

(dollar figures in millions) 

BIF Members 

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

Total assets........................................................................ 

SAIF Members 

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

Total assets........................................................................ 

2000* 1999* 1999 1998 1997 1996 1995 

4 

$224 

5 

$1,219 

7 

$1,424 

3 

$370 

1 

$26 

5 

$183 

6 

$763 

1 

$30 

1 

$63 

1 

$63 

0 

$0 

0 

$0 

1 

$35 

2 

$456 

* Through September 30. 

FDIC Quarterly Banking Profile 

Third Quarter 2000 17 All FDIC-Insured Institutions 
 

 

 

 

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

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

BIF Members 

Number of institutions reporting................................................... 8,629 8,877 8,834 9,031 9,404 9,823 10,243 

BIF-member Oakars............................................................ 747 737 741 746 783 793 807 

Other BIF-members............................................................... 7,882 8,140 8,093 8,285 8,621 9,030 9,436 

Total assets...........................................................................$ 6,320,049 $5,780,892 $5,980,170 $5,702,770 $5,285,403 $4,857,761 $4,577,898 

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

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

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

Return on equity (%)...............................................................

Noncurrent assets plus OREO to assets (%).................................

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

Assets of problem institutions................................................... 

Number of failed/assisted institutions..........................................

Assets of failed/assisted institutions.............................................

SAIF Members 

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

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

Other SAIF-members............................................................

Total assets...........................................................................

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

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

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

Return on equity (%)...............................................................

Noncurrent assets plus OREO to assets (%).................................

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

Assets of problem institutions................................................... 

Number of failed/assisted institutions..........................................

Assets of failed/assisted institutions.............................................

 4,172,835 3,864,855 3,987,385 3,843,816 3,611,453 3,404,204 3,225,650 

55,286 56,119 73,980 64,334 61,459 54,483 50,780 

 1.20 1.31 1.30 1.18 1.22 1.17 1.15 

 14.11 15.22 15.11 13.81 14.44 14.14 14.32 

 0.68 0.66 0.62 0.64 0.67 0.77 0.89 

 74 69 66 68 73 86 152 

$11,163 $4,206 $4,450 $5,326 $4,598 $6,624 $20,166 

 4 5 7 3 1 5 6 

 $224 $1,219 $1,424 $370 $26 $183 $753 

 1,359 1,393 1,387 1,432 1,518 1,629 1,727 

 123 120 122 118 114 94 77 

 1,236 1,273 1,265 1,314 1,404 1,535 1,650 

 $948,312 $874,743 $903,531 $828,177 $755,724 $749,573 $760,521 

 576,317 540,430 550,703 542,481 514,409 520,855 543,831 

6,353 6,413 8,450 7,598 6,486 4,892 5,584 

 0.93 1.01 0.99 0.98 0.94 0.67 0.76 

 11.61 12.15 11.97 11.34 11.13 8.08 9.47 

 0.61 0.68 0.64 0.80 0.98 1.07 1.12 

 16 11 13 16 19 31 42 

$7,672 $3,912 $5,524 $5,992 $1,662 $5,548 $10,864 

 1 1 1 0 0 1 2 

 $30 $63 $63 $0 $0 $35 $456 

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

** Through September 30, ratios annualized where appropriate. 

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

(dollar figures in millions) 

September 30, 2000 

Commercial Banks and Savings Institutions 

Number of Total Domestic 

Institutions Assets Deposits* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks............................................. 8,375 6,064,084 3,325,374 2,042,180 299,472 2,341,652 

BIF-member..................................................................... 8,266 5,975,822 3,263,167 2,026,584 264,735 2,291,319 

SAIF-member.................................................................. 109 88,262 62,207 15,596 34,737 50,333 

FDIC-Supervised............................................................... 5,129 1,126,876 826,209 560,868 69,672 630,539 

OCC-Supervised............................................................... 2,243 3,363,651 1,768,597 1,074,288 165,484 1,239,771 

Federal Reserve-Supervised................................................ 1,003 1,573,558 730,568 407,025 64,317 471,341 

FDIC-Insured Savings Institutions............................................. 1,613 1,204,277 729,571 208,215 441,046 649,261 

OTS-Supervised Savings Institutions....................................... 1,082 908,324 527,746 85,444 383,986 469,430 

BIF-member..................................................................... 40 113,809 59,409 46,312 8,787 55,100 

SAIF-member.................................................................. 1,042 794,515 468,337 39,131 375,199 414,330 

FDIC-Supervised State Savings Banks.................................... 531 295,953 201,825 122,771 57,060 179,831 

BIF-member..................................................................... 323 230,418 156,119 120,332 18,312 138,644 

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

Total Commercial Banks and 

 208 65,535 45,706 2,439 38,748 41,187 

Savings Institutions................................................... 9,988 7,268,361 4,054,945 2,250,395 740,518 2,990,913 

BIF-member........................................................................ 8,629 6,320,049 3,478,695 2,193,228 291,834 2,485,062 

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

Other FDIC-Insured Institutions 

 1,359 948,312 576,250 57,167 448,684 505,851 

U.S. Branches of Foreign Banks............................................. 19 8,923 3,709 1,319 0 1,319 

Total FDIC-Insured Institutions....................................... 10,007 7,277,284 4,058,654 2,251,714 740,518 2,992,232 

* Excludes $694 billion in foreign office deposits, which are uninsured. 

FDIC Quarterly Banking Profile 

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

BIF Assessment Base Distribution 

Assessable Deposits in Millions as of September 30, 2000 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2001 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

 7,999 

 $3,082,774 

 169 

 $33,297 

 4 

 $590 

92.5 

96.8 

2.0 

1.0 

0.0 

0.0 

390 4.5 

$58,778 1.8 

16 0.2 

$3,151 0.1 

1 0.0 

$108 0.0 

57 

$6,803 

7 

$582 

5 

$163 

0.7 

0.2 

0.1 

0.0 

0.1 

0.0 

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

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

by on-site examinations. 

SAIF Assessment Base Distribution 

Assessable Deposits in Millions as of September 30, 2000 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2001 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

 1,203 

 $756,118 

 19 

 $8,513 

 1 

 $12 

88.5 

93.7 

1.4 

1.1 

0.1 

0.0 

105 7.7 

$27,432 3.4 

10 0.7 

$2,330 0.3 

0 0.0 

$0 0.0 

15 

$7,864 

4 

$4,079 

2 

$432 

1.1 

1.0 

0.3 

0.5 

0.1 

0.1 

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

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

by on-site examinations. 

Assessment Rate Schedules 

First Semiannual 2001 Assessment Period 

Cents Per $100 of Assessable Deposits 

Capital Group Supervisory Risk Subgroup 

A B C 

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

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

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

 0 

 3 

 10 

3 

10 

24 

17 

24 

27 

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

Currently, the rate schedules are identical. 

FDIC Quarterly Banking Profile 

Third Quarter 2000 19 All FDIC-Insured Institutions 
NUMBER OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1992–2000 

Number of Institutions 

1,063 

572 

318 

193 

117 92 84 82 88 84 80 76 80 79 87 90 

Savings Institutions 

Commercial Banks 

89 

12/92 12/93 12/94 12/95 12/96 12/97 3/98 6/98 9/98 12/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 

Savings Institutions 276 146 71 49 35 21 16 18 18 15 16 14 11 13 15 16 15 

Commercial Banks 787 426 247 144 82 71 68 64 70 69 64 62 69 66 72 73 75 

ASSETS OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1992–2000 

$ Billions 

Savings Institutions $592 

Commercial Banks 

$334 

$72 

$31 $12 $19 $19 $7 $7 $8 $8 $11 $10 $9 $8 $10 $10 

12/92 12/93 12/94 12/95 12/96 12/97 3/98 6/98 9/98 12/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 

Savings Institutions 184 92 39 14 7 2 2 3 3 6 5 4 4 6 5 8 7 

Commercial Banks 408 242 33 17 5 5 5 5 5 5 5 5 4 4 5 11 12 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 20 Third Quarter 2000 
NOTES TO USERS 

This publication contains financial data and other information 

for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding the 

comparability of source data and reporting differences over 

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

FDIC-Insured Commercial Banks 

(Tables I-A through V-A.) 

This section covers commercial banks insured by the FDIC 

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

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

the three federal commercial bank regulators (the Board of 

Governors of the Federal Reserve System, the FDIC or the 

Office of the Comptroller of the Currency). 

FDIC-Insured Savings Institutions 

(Tables I-B through V-B.) 

This section covers savings institutions insured by either BIF 

or SAIF that operate under state or federal banking codes 

applicable to thrift institutions, except for one self-liquidating 

institution primarily funded by the FSLIC Resolution Fund 

(FRF). Savings institutions in Resolution Trust Corporation 

conservatorships are also excluded from these tables while 

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

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

Office of Thrift Supervision (OTS). 

FDIC-Insured Institutions by Insurance Fund 

(Tables I-C through VII-C.) 

Summary balance-sheet and earnings data are provided for 

commercial banks and savings institutions according to 

insurance fund membership. BIF-member institutions may 

acquire SAIF-insured deposits, resulting in institutions with 

some deposits covered by both insurance funds. Also, SAIF 

members may acquire BIF-insured deposits. The insurance 

fund membership does not necessarily reflect which fund 

insures the largest percentage of an institution’s deposits. 

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

each include deposits from both insurance funds. Depository 

institutions that are not insured by the FDIC through either 

the BIF or SAIF are not included in the FDIC Quarterly 

Banking Profile. U.S. branches of institutions headquartered 

in foreign countries and non-deposit trust companies are not 

included unless otherwise indicated. Efforts are made to 

obtain financial reports for all active institutions. However, in 

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

DATA SOURCES 

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Call Reports and the OTS 

Thrift Financial Reports submitted by all FDIC-insured 

depository institutions. This information is stored on and 

retrieved from the FDIC’s Research Information System 

(RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting 

and accounting requirements of the FFIEC Call Reports. 

Beginning in March 1997, both Thrift Financial Reports and 

Call Reports are completed on a fully consolidated basis. 

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

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

subsidiary institution reports are included in the Quarterly 

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

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

All asset and liability figures used in calculating performance 

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

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

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

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

rates represent the percentage change over a 12-month 

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

institutions in the current period. 

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

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

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

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

ACCOUNTING CHANGES 

Adoption of GAAP Reporting — Effective with the March 

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

New reporting instructions for 1997 and 1998 changed the 

amounts reported for a number of items used in the 

Quarterly Banking Profile, so that comparability with prior 

periods may be affected. Among the items most significantly 

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

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

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

March 1997 and in March 1998 is contained in Financial 

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

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

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

Information on changes to the March 31, 1997 Thrift 

Financial Reports is available from the Office of Thrift 

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

telephone (202) 906-5900. 

Subchapter S Corporations — The Small Business Job 

Protection Act of 1996 changed the Internal Revenue Code 

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

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

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

federal income taxes at the corporate level. Its taxable 

income flows through to its shareholders in proportion to their 

FDIC Quarterly Banking Profile 

Third Quarter 2000 21 Notes to Users 
stock ownership, and the shareholders generally pay federal 

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

have the effect of reducing institutions’ reported taxes and 

increasing their after-tax earnings. 

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

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

DEFINITIONS (in alphabetical order) 

All other assets — total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

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

agreements to resell, and other assets. 

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

sheet credit losses, and other liabilities. 

Assessment base distribution — assessable deposits 

consist of BIF and SAIF deposits in banks’ domestic offices 

with certain adjustments. Each institution’s assessment 

depends on its assigned risk-based capital category and 

supervisory risk subgroup: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) Capital * Capital * Leverage Equity 

Well-capitalized >10 and >6 and >5 — 

Adequately 

capitalized >8 and >4 and >4 — 

Undercapitalized >6 and >3 and >3 — 

Significantly 

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

Critically 

undercapitalized — — — <2 

*As a percentage of risk-weighted assets. 

For purpose of BIF and SAIF assessments, risk-based 

assessment rules combine the three lowest capital rating 

categories into a single “undercapitalized” group. Supervisory risk subgroup assignments are based on supervisory 

ratings. Generally, the strongest institutions (those rated 1 or 

2) are in subgroup A, those rated 3 are in subgroup B, and 

those rated 4 or 5 are in subgroup C. 

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

attributable amount acquired from BIF members. 

Construction and development loans — includes loans 

for all property types under construction, as well as loans for 

land acquisition and development. 

Core capital — common equity capital plus noncumulative 

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

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

with supervisory capital regulations. 

Cost of funding earning assets — total interest expense 

paid on deposits and other borrowed money as a percentage 

of average earning assets. 

Direct and indirect investments in real estate — excludes 

loans secured by real estate and property acquired through 

foreclosure. 

Earning assets — all loans and other investments that earn 

interest or dividend income. 

Efficiency Ratio — Noninterest expense less amortization 

of intangible assets as a percent of net interest income plus 

noninterest income. This ratio measures the proportion of net 

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

Estimated insured deposits — in general, insured deposits 

are estimated to be total domestic deposits minus estimated 

uninsured deposits. The uninsured estimate is calculated as 

the sum of the excess amounts in accounts over $100,000. 

Beginning June 30, 2000 the amount of estimated uninsured 

deposits is adjusted to consider a financial institution’s estimate, where the institution reports that it has a better method 

or procedure for calculating uninsured deposits. 

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

liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the FDIC 

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

“assisted” when the institution remains open and receives 

some insurance funds in order to continue operating. 

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

furnished by the Federal Housing Finance Board (FHFB) for 

Call filers and reported by TFR filers. 

Goodwill and other intangibles — intangible assets 

include servicing rights, purchased credit card relationships 

and other identifiable intangible assets. 

Loans secured by real estate — includes home equity 

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

and all other loans secured by real estate. 

Loans to individuals — includes outstanding credit card 

balances and other secured and unsecured consumer loans. 

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

with remaining maturities or repricing intervals of over five years. 

Mortgage-backed securities — certificates of participation 

in pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored 

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

Net charge-offs — total loans and leases charged off 

(removed from balance sheet because of uncollectibility), 

less amounts recovered on loans and leases previously 

charged off. 

Net interest margin — the difference between interest and 

dividends earned on interest-bearing assets and interest 

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

made for interest income that is tax exempt. 

Net operating income — income excluding discretionary 

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

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

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

in nonaccrual status. 

Noncurrent loans & leases — the sum of loans and leases 

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

FDIC Quarterly Banking Profile 

Notes to Users 22 Third Quarter 2000 
Number of institutions reporting — the number of institutions that actually filed a financial report. 

Off-balance-sheet derivatives — represents the sum of the 

following: interest-rate contracts (defined as the notional 

value of interest-rate swap, futures, forward and option contracts), foreign-exchange-rate contracts, commodity contracts and equity contracts (defined similarly to interest-rate 

contracts). 

Futures and forward contracts — a contract in which the 

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

specified future date, a specific quantity of an underlying variable or index at a specified price or yield. These contracts 

exist for a variety of variables or indices, (traditional agricultural or physical commodities, as well as currencies and interest rates). Futures contracts are standardized and are traded 

on organized exchanges which set limits on counterparty 

credit exposure. Forward contracts do not have standardized 

terms and are traded over the counter. 

Option contracts — a contract in which the buyer acquires 

the right to buy from or sell to another party some specified 

amount of an underlying variable or index at a stated price 

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

return for compensation (such as a fee or premium). The seller is obligated to purchase or sell the variable or index at the 

discretion of the buyer of the contract. 

Swaps — an obligation between two parties to exchange a 

series of cash flows at periodic intervals (settlement dates), 

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

fixed, or determined for each settlement date by multiplying 

the quantity (notional principal) of the underlying variable or 

index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each 

payment but is not exchanged. 

Other borrowed funds — federal funds purchased, securities sold with agreements to repurchase, demand notes 

issued to the U.S. Treasury, FHLB advances, other borrowed 

money, mortgage indebtedness, obligations under capitalized leases and trading liabilities, less revaluation losses on 

assets held in trading accounts. 

Other real estate owned — primarily foreclosed property. 

Direct and indirect investments in real estate ventures are 

excluded. The amount is reflected net of valuation 

allowances. For institutions that file a Thrift Financial Report 

(TFR), the valuation allowance subtracted also includes 

allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported 

gross of valuation allowances. 

Percent of institutions with earnings gains — the percent 

of institutions that increased their net income (or decreased 

their losses) compared to the same period a year earlier. 

“Problem” institutions — federal regulators assign a composite rating to each financial institution, based upon an evaluation of financial and operational criteria. The rating is 

based on a scale of 1 to 5 in ascending order of supervisory 

concern. “Problem” institutions are those institutions with 

financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending upon the 

degree of risk and supervisory concern, they are rated either 

a “4” or “5”. For all BIF-member institutions, and for all SAIFmember institutions for which the FDIC is the primary federal regulator, FDIC composite ratings are used. For all 

SAIF-member institutions whose primary federal regulator is 

the OTS, the OTS composite rating is used. 

Reserves for losses — the allowance for loan and lease 

losses and the allocated transfer risk reserve on a consolidated basis. Prior to March 31, 1997, institutions filing a Thrift 

Financial Report (TFR) included specific reserves, while Call 

Report filers included only general valuation allowances. 

Beginning March 31, 1997, TFR reporters net these specific 

reserves against each loan balance. Also beginning March 

31, 1997, the allowance for off-balance-sheet credit exposures was moved to “Other liabilities”; previously, it had been 

included in the general valuation allowance. 

Restructured loans and leases — loan and lease financing 

receivables with terms restructured from the original contract. Excludes restructured loans and leases that are not in 

compliance with the modified terms. 

Return on assets — net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total assets. The basic yardstick of bank profitability. 

Return on equity — net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total equity capital. 

Risk-weighted assets — assets adjusted for risk-based 

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

off-balance-sheet items multiplied by risk-weights that range 

from zero to 100 percent. A conversion factor is used to 

assign a balance sheet equivalent amount for selected offbalance-sheet accounts. 

SAIF-insured deposits (estimated) — the portion of estimated insured deposits that is insured by the SAIF. For BIFmember “Oakar” institutions, it represents the adjusted 

attributable amount acquired from SAIF members. 

Securities — excludes securities held in trading accounts. 

Banks’ securities portfolios consist of securities designated 

as “held-to-maturity”, which are reported at amortized cost 

(book value), and securities designated as “available-forsale”, reported at fair (market) value. 

Securities gains (losses) — realized gains (losses) on 

held-to-maturity and available-for-sale securities, before 

adjustments for income taxes. Thrift Financial Report (TFR) 

filers also include gains (losses) on the sales of assets held 

for sale. 

Troubled real estate asset rate — noncurrent real estate 

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

estate loans and other real estate owned. 

Unearned income & contra accounts — unearned income 

and loans-in-process for TFR filers. Beginning March 31 

1997, TFR filers net the unearned income and the loans-inprocess against each loan balance, leaving just the 

unearned income on loans reported by Call Report filers. 

Unused loan commitments — includes credit card lines, 

home equity lines, commitments to make loans for construction, loans secured by commercial real estate, and unused 

commitments to originate or purchase loans. 

Volatile liabilities — the sum of large-denomination time 

deposits, foreign-office deposits, federal funds purchased, 

securities sold under agreements to repurchase, and other 

borrowings. 

Yield on earning assets — total interest, dividend and fee 

income earned on loans and investments as a percentage of 

average earning assets. 

FDIC Quarterly Banking Profile 

Third Quarter 2000 23 Notes to Users 
Federal Deposit Insurance Corporation 

Washington, DC 20429-9990 

OFFICIAL BUSINESS 

PENALTY FOR PRIVATE USE, $300 

BULK RATE 

MAIL 

Postage & 

Fees Paid 

FDIC 

Permit No. G-36 

Attention: 

Chief Executive Officer