Donald E. Powell, Chairman 

First Quarter 2002 

Division of Research 

& Statistics 

Don Inscoe 

Associate Director 

Statistics Branch 

(202) 898-3940 

Kevin Brown 

(202) 898-6817 

Tim Critchfield 

(202) 898-8557 

Ross Waldrop 

(202) 898-3951 

Jim McFadyen 

1946–2002 

COMMERCIAL BANK PERFORMANCE — FIRST QUARTER 2002 

n Bank Earnings Rise To New Record Of $21.7 Billion 

n Net Interest Margin Improvement At Large Banks Gives Lift To Profits 

n Asset-Quality Weaknesses Continue To Grow 

n Contraction In Industry’s Loan Portfolio Is First In Five Years 

Industry Earnings Surpass $20-Billion 

Mark For First Time 

Wider net interest margins at large banks, combined with slow growth in noninterest expenses, 

helped propel commercial bank profits to a 

record $21.7 billion in the first quarter. Banks 

achieved the record results despite the drag on 

earnings from rising expenses for loan losses 

and lower gains on sales of securities. This is 

the first time that the industry’s quarterly earnings have surpassed $20 billion, and easily 

eclipses the previous record of $19.8 billion, set 

in the first quarter of last year. While the largest 

improvements in profitability occurred at large 

banks, the trend toward improvement was relatively widespread. A majority of banks (55.1 percent) reported higher returns on assets (ROAs) 

than in the first quarter of 2001, almost twothirds of all banks (64.0 percent) reported higher net income than a year ago, and only 6.7 

NET INCOME SETS NEW RECORD 

$ Billions 

Securities and Other Gains/Losses, Net 

Net Operating Income 21.7 

20 19.4 19.5 19.2 19.8 19.2 18.6 18.0 17.7 17.7 17.3 

15.9 16.1 16.9 

14.6 15.0 14.8 15 

10 

5 

0 

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

1998 1999 2000 2001 2002 

NONINTEREST EXPENSES ABSORB 

A SMALLER SHARE OF NET OPERATING 

REVENUE 

% of Net Operating Revenue 

80 Noninterest Expense 

60 

Noninterest Income 

40 

Loss Provision 

20 

0 

1994 1995 1996 1997 1998 1999 2000 2001 2002 

percent of all banks reported quarterly losses, 

compared to 7.0 percent a year earlier. The 

quarter’s ROA of 1.33 percent is the third-highest quarterly ROA ever reported by the industry. 

Net Interest Income Growth Is Key to 

Earnings Strength 

Net income was $1.9 billion (9.6 percent) higher 

than a year earlier, largely because of a $6.8-billion (13.1-percent) rise in net interest income. 

Noninterest income grew by only $1.3 billion 

(3.3 percent), but this growth outstripped the 

$1.1-billion (2.0-percent) rise in noninterest 

expenses. Extraordinary losses were $213 million (64.0 percent) lower than a year ago, giving 

a boost to pre-tax earnings. Among the items 

that held down earnings, provisions for loan 

losses were up by $3.7 billion (46.5 percent), 

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. 
and gains on securities sales were $481 million GAP BETWEEN LARGE AND SMALL BANK 

(41.1 percent) lower than in the first quarter of 2001. MARGINS CONTINUES TO NARROW 

Net income from banks’ international operations Net Interest Margin (%) 

was $584 million (26.4 percent) lower than a year 

ago. 

Market-Sensitive Revenues Exhibit 

Weakness 

Noninterest income was boosted by higher securitization income (up $1.1 billion, or 30.1 percent), 

increased service charges on deposit accounts (up 

$867 million, or 14.1 percent), higher servicing fees 

(up $682 million, or 23.9 percent), and increased 

gains on loan sales (up $849 million, or 87.5 percent). The 3.3-percent increase in noninterest revenues compared to a year ago was an improvement 

over the two previous quarters, but was modest by 

3.5 

4.0 

4.5 

5.0 

Assets < $100 Billion 

Assets > $100 Billion 

4.36 

4.15 

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

1998 1999 2000 2001 2002 

historical standards. Noninterest income growth 

was slowed by lower market-sensitive revenues, 

including trading revenues (down $834 million, or 

20.9 percent from a year ago), investment banking 

income (down $103 million, or 4.7 percent), and 

venture capital revenue (down $101 million, or 73.2 

percent). Proceeds from sales of non-loan assets 

were $1.1 billion lower than in the first quarter of 

2001. 

Net Interest Margin Reaches Highest Level 

in More than Four Years 

The industry’s net interest margin rose to 4.19 percent in the first quarter, from 4.15 percent in the 

fourth quarter and 3.83 percent in the first quarter of 

last year. This is the highest margin since the third 

quarter of 1997. Back then, however, average margins at banks with less than $100 million in assets 

were more than 50 basis points higher than they are 

now (4.78 percent, vs. 4.26 percent), while margins 

at banks with more than $10 billion in assets were 

almost 30 basis points lower (3.84 percent vs. 4.12 

percent). Slightly more than half of all banks (52.1 

percent) reported higher margins than a year ago. 

While the industry’s margin has improved in each of 

the last four quarters, by a total of 36 basis points, 

the average margin at banks with less than $100 

million in assets has remained flat. 

C&I Loans, Credit Cards Lead Rise in 

Loan Losses 

Net charge-offs totaled $11.1 billion in the first quarter, down from $12.8 billion in the fourth quarter, but 

$4.1 billion (59.5 percent) higher than a year ago. 

Credit-card charge-offs were higher than chargeoffs of commercial and industrial (C&I) loans, but 

losses on credit cards were inflated by one-time 

charges related to restructurings and loan sales. 

Losses on commercial and industrial loans continued to increase; C&I charge-offs were $1.2 billion 

(49.2 percent) above the level of a year ago. 

Charge-offs of C&I loans to non-U.S. borrowers 

rose by $243 million (160.9 percent). Charge-offs of 

credit-card loans jumped sharply in the first quarter, 

to $4.9 billion, from $3.5 billion in the fourth quarter 

and $2.6 billion in the first quarter of 2001. Three 

out of four specialized credit-card lenders registered 

increases in charge-offs. Consumer loans other 

than credit cards had a $391-million (36.2-percent) 

increase in charge-offs, while charge-offs of leases 

were $143 million (72.6 percent) higher than a year 

ago. Other loan categories (real estate construction 

loans, residential mortgages, commercial real estate 

loans, loans to depository institutions) had modest 

increases in charge-offs compared to year-earlier 

levels. Fewer than half of all banks — 47.4 percent 

— reported higher overall net charge-off rates in the 

first quarter than in the first quarter of 2001. 

CREDIT CARD LOSS RATES AND PERSONAL 

BANKRUPTCY FILINGS STAY ON RECORD PACE 

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

0 

1 

2 

3 

4 

5 

6 

7 

8 

9 

50 

100 

150 

200 

250 

300 

350 

400 

Credit Card Charge-Off Rates 

Personal 

Bankruptcy 

Filings 

1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 First Quarter 2002 
Noncurrent Loans to Non-U.S. Borrowers ter helped the industry’s equity-to-assets ratio rise 

Increased During the Quarter 

Noncurrent loans continued to increase, led by 

growth in noncurrent C&I loans. Noncurrent C&I 

loans increased by $1.6 billion during the quarter, 

representing almost three-quarters of the $2.2-billion increase in total noncurrent loans. Non-U.S. 

C&I customers accounted for $921 million — more 

than half — of this increase. Roughly one out of 

three banks (31.9 percent ) reported an increase in 

noncurrent C&I loans during the quarter, but these 

banks collectively held more than two-thirds (69.5 

percent) of the industry’s total C&I loans. At the end 

of March, 2.61 percent of banks’ C&I loans were 

noncurrent, the highest level since the middle of 

1993. C&I loans now comprise 44.2 percent of all 

noncurrent loans at commercial banks, compared to 

41.2 percent a year ago and 42.9 percent at the 

beginning of the quarter. The largest relative 

increase in noncurrent loans during the quarter 

occurred in loans to foreign governments and official 

institutions, which rose from $31 million to $325 million (948 percent), as the noncurrent rate rose from 

0.42 percent to 5.08 percent. 

C&I LOAN CHARGE-OFFS DECLINE, BUT 

NONCURRENT C&I LOANS ARE STILL GROWING 

$ Billions 

35 

30 

25 

20 

15 

10 

5 

0 

1997 1998 1999 2000 2001 2002 

Reserves Keep Pace With Noncurrent 

Loans 

Banks’ reserves continued to grow strongly during 

the first quarter, increasing by $2.7 billion, following 

a $3.9-billion increase in the fourth quarter. The 

industry’s ratio of reserves to loans increased for the 

sixth consecutive quarter, from 1.85 percent to 1.92 

percent. However, the increase in noncurrent loans 

during the quarter meant that the industry’s “coverage ratio” remained unchanged at $1.31 in reserves 

for every $1.00 of noncurrent loans. Equity capital 

increased by $7.4 billion, the smallest increase 

since the third quarter of 1999, but a $64.8-billion 

decline in commercial bank assets during the quarQuarterly Net Charge-offs 

Noncurrent Loans 28.8 

3.5 

25.3 

7.4 

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

FDIC Quarterly Banking Profile 

from 9.09 percent to 9.30 percent. Retained earnings fell to $2.2 billion from $6.4 billion a year earlier, as banks paid a record $19.6 billion in dividends 

in the first quarter. 

Loans Decline for First Time in Five Years 

The decline in assets in the first quarter was mainly 

the result of a seasonal decline in balances due 

from depository institutions at a few large banks, but 

it received reinforcement from the first quarterly 

decline in total loans since the first quarter of 1997. 

A majority of banks had increases in both loans and 

assets during the quarter. The industry’s holdings of 

C&I loans fell by $16.7 billion during the quarter 

(including a $9.2-billion decline in loans to non-U.S. 

borrowers), the fifth consecutive quarter that C&I 

loans have declined. During this time, C&I loans 

have dropped by $84.2 billion (8.0 percent). Other 

loan categories that registered declines during the 

first quarter include: residential mortgage loans, 

down $18.0 billion, consumer loans other than credit cards, down $4.8 billion, and agricultural production loans, down $2.7 billion. Growth in construction 

loans slowed for the fourth quarter in a row. The 

0.7-percent increase in the first quarter was the 

smallest since the fourth quarter of 1994. Mortgagebacked securities increased by a modest $2.3 billion 

during the quarter, while U.S. Treasury securities 

ended a string of 11 consecutive quarterly declines, 

growing by $5.6 billion in the first quarter. 

Savings Deposits Continue to Grow 

Strongly 

With lower levels of assets and with equity providing 

a higher share of funding, total deposits of commercial banks declined by $39.4 billion during the quarter. The share of total asset funding that is provided 

by deposits remained unchanged at 66.9 percent. 

Deposits in foreign offices fell by $26.0 billion, while 

domestic deposits declined by $13.4 billion. In 

domestic offices, demand deposits declined by 

$81.1 billion, time deposits fell by $17.2 billion, and 

savings deposits increased by $84.8 billion. 

The number of insured commercial banks reporting 

financial results declined from 8,080 to 8,005 during 

the first quarter. There were 17 new charters added 

during the quarter, while 86 banks were absorbed 

into other institutions through mergers. Six insured 

commercial banks failed in the first quarter, the 

largest number of bank failures in a quarter since 

the third quarter of 1994. The number of commercial banks on the FDIC’s “Problem List” increased 

from 95 to 102 in the quarter, and assets of “problem” banks rose from $36 billion to $37 billion. 

First Quarter 2002 3 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

2002* 2001* 2001 2000 1999 1998 1997 

Return on assets (%)............................................. 1.33 1.26 1.15 1.19 1.31 1.19 1.23 

Return on equity (%)............................................. 14.46 14.71 13.09 14.02 15.31 13.93 14.68 

Core capital (leverage) ratio (%).............................. 7.95 7.68 7.79 7.70 7.79 7.54 7.56 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.97 0.79 0.92 0.74 0.63 0.65 0.66 

Net charge-offs to loans (%).................................... 1.14 0.73 0.94 0.67 0.61 0.67 0.64 

Asset growth rate (%)............................................. 2.98 8.06 5.20 8.88 5.38 8.53 9.54 

Net interest margin (%).......................................... 4.19 3.83 3.90 3.95 4.07 4.07 4.21 

Net operating income growth (%).............................. 10.56 -3.12 -1.63 1.80 20.40 2.24 12.46 

Number of institutions reporting.............................. 8,005 8,238 8,080 8,315 8,579 8,773 9,142 

Percentage of unprofitable institutions (%).................. 6.75 6.97 7.88 7.34 7.51 6.11 4.85 

Number of problem institutions................................. 102 78 95 76 66 69 71 

Assets of problem institutions (in billions).................. $37 $17 $36 $17 $4 $5 $5 

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

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

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

(dollar figures in millions) 

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

Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

2002 2001 2001 01:1-02:1 

8,005 8,080 8,238 -2.8 

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

CONDITION DATA

1,722,872 1,705,135 1,683,014 2.4 

 Total assets..................................................................... $6,504,593 $6,569,348 $6,316,420 3.0

 Loans secured by real estate............................................. 1,810,583 1,802,270 1,702,445 6.4

 Commercial & industrial loans.......................................... 966,844 983,539 1,045,525 -7.5

 Loans to individuals......................................................... 649,241 631,647 597,496 8.7

 Farm loans.................................................................. 45,084 47,912 46,213 -2.4

 Other loans & leases...................................................... 425,406 433,400 442,453 -3.9

 Less: Unearned income................................................... 3,844 3,110 2,790 37.8

 Total loans & leases......................................................... 3,893,313 3,895,658 3,831,342 1.6

 Less: Reserve for losses................................................... 74,861 72,146 64,738 15.6

 Net loans and leases......................................................... 3,818,452 3,823,513 3,766,604 1.4

 Securities........................................................................ 1,185,913 1,179,695 1,049,095 13.0

 Other real estate owned................................................... 3,809 3,569 3,065 24.3

 Goodwill and other intangibles.......................................... 131,801 122,418 100,855 30.7

 All other assets............................................................... 1,364,613 1,440,154 1,396,800 -2.3 

Total liabilities and capital................................................... 6,504,593 6,569,348 6,316,420 3.0

 Noninterest-bearing deposits............................................. 805,659 873,152 722,748 11.5

 Interest-bearing deposits.................................................. 3,546,548 3,518,460 3,463,531 2.4

 Other borrowed funds...................................................... 1,135,547 1,130,498 1,144,609 -0.8

 Subordinated debt............................................................ 92,983 95,317 90,525 2.7

 All other liabilities............................................................ 319,076 354,543 347,489 -8.2

 Equity capital.................................................................. 604,782 597,378 547,517 10.5 

Loans and leases 30-89 days past due................................. 49,063 53,287 47,281 3.8 

Noncurrent loans and leases................................................ 57,198 55,018 46,115 24.0 

Restructured loans and leases............................................. 1,881 1,551 1,148 63.9 

Direct and indirect investments in real estate........................... 259 264 277 -6.6 

1-4 Family residential mortgages.......................................... 960,541 966,285 926,956 3.6 

Mortgage-backed securities................................................ 615,947 613,609 494,613 24.5 

Earning assets.................................................................. 5,619,844 5,598,715 5,447,182 3.2 

Long-term assets (5+ years)................................................ 1,324,888 1,342,549 1,160,815 14.1 

Volatile liabilities............................................................... 2,043,638 2,061,737 2,152,994 -5.1 

Foreign office deposits...................................................... 603,522 629,506 671,096 -10.1 

FHLB Advances............................................................... 204,013 198,761 179,619 13.6 

Unused loan commitments................................................... 5,066,678 4,828,884 4,549,139 11.4 

Derivatives..................................................................... 46,503,980 45,168,844 44,352,565 4.9 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary 

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

2001 2000 %Change 2002 2001 01:1-02:1 

$402,913 $428,448 -6.0 $88,983 $109,695 -18.9 

187,715 224,488 -16.4 30,346 57,844 -47.5

215,198 203,960 5.5 58,637 51,851 13.1 

43,151 30,011 43.8 11,652 7,954 46.5 

157,167 153,453 2.4 41,467 40,155 3.3 

222,337 216,104 2.9 56,145 55,058 2.0 

4,475 -2,283 N/M 690 1,171 -41.1 

36,872 37,981 -2.9 11,144 9,997 11.5 

-248 -32 N/M -120 -333 N/M

74,232 71,002 4.6 21,732 19,836 9.6 

36,492 24,786 47.2 11,113 6,969 59.5 

54,029 53,854 0.3 19,581 13,455 45.5

71,405 72,591 -1.6 21,377 19,335 10.6 

N/M - Not meaningful 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 First Quarter 2002 
TABLE III-A. First Quarter 2002, FDIC-Insured Commercial Banks 

FIRST QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

8,005 4,437 3,177 310 81 636 1,378 1,712 2,082 1,328 869 

Total assets (in billions).................................... $6,504.6 $221.1 $821.1 $896.7 $4,565.7 $2,224.9 $1,616.9 $1,297.7 $372.6 $276.5 $716.1 

Total deposits (in billions).................................... 4,352.2 187.8 671.1 610.3 2,883.1 1,413.5 1,125.1 840.0 251.8 226.6 495.3 

Net income (in millions).................................... 21,732 551 2,480 3,314 15,387 6,497 5,603 4,413 1,512 863 2,844 

% of unprofitable institutions.............................. 6.7 10.2 2.5 2.3 2.5 10.5 8.3 4.7 4.4 6.2 12.0 

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

Performance ratios (annualized, %) 

64.0 58.1 70.9 76.5 71.6 67.5 67.6 68.8 62.8 57.5 59.0 

Yield on earning assets.................................... 6.35 6.88 6.87 6.55 6.18 6.18 6.28 6.16 7.29 6.51 6.80 

Cost of funding earning assets........................... 2.17 2.62 2.48 2.24 2.07 2.27 2.16 2.25 2.24 2.07 1.72 

Net interest margin.......................................... 4.19 4.26 4.39 4.31 4.12 3.91 4.12 3.91 5.05 4.44 5.08 

Noninterest income to earning assets.................. 2.96 1.05 1.68 2.76 3.35 3.86 2.60 2.24 3.03 1.59 2.93 

Noninterest expense to earning assets.................. 4.01 3.65 3.81 3.92 4.08 4.48 3.88 3.28 4.44 3.76 4.10 

Loan and lease loss provision to assets............... 0.71 0.24 0.34 0.62 0.82 0.97 0.43 0.55 0.94 0.31 0.89 

Net operating income to assets........................... 1.31 0.98 1.23 1.46 1.31 1.12 1.35 1.33 1.60 1.25 1.63 

Pretax return on assets.................................... 2.01 1.30 1.72 2.24 2.06 1.80 2.04 2.01 2.37 1.74 2.52 

Return on assets............................................. 1.33 1.00 1.22 1.49 1.34 1.16 1.38 1.35 1.62 1.25 1.59 

Return on equity............................................. 14.46 9.22 12.55 14.93 15.04 13.32 14.51 15.65 16.47 13.06 15.08 

Net charge-offs to loans and leases..................... 1.14 0.23 0.34 0.91 1.39 1.85 0.62 0.84 1.33 0.38 1.26 

Loan and lease loss provision to net charge-offs...... 104.85 165.84 152.73 109.42 101.39 102.28 111.82 98.93 104.83 143.38 110.37 

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

Condition Ratios (%) 

54.98 68.66 62.33 54.52 53.41 56.55 56.35 52.44 53.71 61.70 50.27 

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

Loss allowance to: 

86.40 91.81 91.65 90.23 84.44 83.59 85.90 88.87 90.50 90.38 88.10 

Loans and leases.......................................... 1.92 1.44 1.47 1.79 2.07 2.33 1.62 1.77 1.81 1.49 2.06 

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

Noncurrent assets plus 

130.88 124.35 147.77 161.11 124.83 122.68 133.18 120.03 158.42 135.03 167.02 

other real estate owned to assets..................... 0.97 0.86 0.77 0.77 1.05 1.08 0.84 1.07 0.85 0.76 0.86 

Equity capital ratio............................................. 9.30 10.83 9.72 10.11 8.99 8.82 9.49 8.74 10.07 9.69 10.80 

Core capital (leverage) ratio.............................. 7.95 10.56 9.23 8.99 7.40 7.48 7.93 7.73 9.13 8.66 9.05 

Tier 1 risk-based capital ratio.............................. 10.16 15.91 13.00 12.31 9.12 10.02 9.63 9.34 12.32 12.83 11.49 

Total risk-based capital ratio.............................. 13.00 17.02 14.20 14.25 12.43 13.06 12.53 12.44 13.71 14.31 14.22 

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

Structural Changes (YTD) 

87.74 70.76 78.28 90.04 90.56 79.58 88.02 101.23 97.94 69.71 90.53 

New Charters................................................ 17 16 1 0 0 2 7 0 1 2 5 

Banks absorbed by mergers........................... 86 30 42 11 1 13 24 9 14 12 12 

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

PRIOR FIRST QUARTERS

 (The way it was...) 

6 4 1 1 0 0 2 2 0 1 1 

Number of institutions................................2001 8,238 4,759 3,087 312 80 655 1,420 1,767 2,133 1,365 898

 ...............................................1999 8,721 5,374 2,957 317 73 684 1,440 1,897 2,252 1,502 946

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

Total assets (in billions).............................2001 $6,316.4 $229.5 $781.0 $879.2 $4,426.8 $2,237.4 $1,599.7 $1,126.5 $414.3 $262.5 $676.0

 ................................................1999 5,411.8 250.5 727.4 901.4 3,532.5 1,924.2 1,206.5 873.6 371.7 302.8 732.9

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

Return on assets (%)................................2001 1.26 1.00 1.26 1.37 1.26 1.19 1.16 1.10 1.26 1.17 2.08

 ................................................1999 1.32 1.09 1.30 1.71 1.24 1.32 1.25 1.36 1.52 1.06 1.41

 ................................................1997 

Net charge-offs to loans & leases (%) 

1.25 1.21 1.32 1.29 1.23 1.19 1.31 1.27 1.33 1.23 1.32 

 ................................................2001 0.73 0.19 0.29 0.74 0.84 0.86 0.57 0.58 0.86 0.33 1.10

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

 ................................................1997 

Noncurrent assets plus 

0.58 0.17 0.35 0.96 0.52 0.66 0.43 0.42 0.71 0.31 0.80 

OREO to assets (%)..............................2001 0.79 0.73 0.65 0.72 0.83 0.77 0.85 0.80 0.70 0.68 0.78

 ................................................1999 0.67 0.75 0.64 0.69 0.67 0.76 0.59 0.58 0.62 0.68 0.70

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

Equity capital ratio (%)..............................2001 8.67 11.18 9.78 9.29 8.22 8.02 9.03 7.98 9.88 9.60 10.01

 ................................................1999 8.68 11.06 9.60 9.78 8.04 7.94 9.20 8.57 8.92 8.93 9.66

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

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

Rhode Island, Vermont, U.S. Virgin Islands

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

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

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

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

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

FDIC Quarterly Banking Profile 

First Quarter 2002 5 FDIC-Insured Commercial Banks 
TABLE IV-A. Full Year 2001, FDIC-Insured Commercial Banks 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

8,080 4,486 3,194 320 80 651 1,392 1,721 2,094 1,342 880 

Total assets (in billions).................................... $6,569.3 $221.6 $819.8 $915.5 $4,612.4 $2,259.3 $1,634.0 $1,321.6 $363.7 $276.7 $714.1 

Total deposits (in billions).................................... 4,391.6 187.7 668.4 625.0 2,910.5 1,432.7 1,127.4 860.7 253.9 226.1 491.0 

Net income (in millions).................................... 74,232 1,883 9,282 11,513 51,554 23,693 18,247 13,267 5,005 3,088 10,933 

% of unprofitable institutions.............................. 7.9 11.7 3.2 3.1 1.3 10.6 12.9 6.0 4.3 6.2 12.8 

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

Performance Ratios (%) 

56.4 49.3 65.0 69.1 62.5 65.6 55.6 60.0 55.2 50.2 56.3 

Yield on earning assets.................................... 7.29 7.83 7.90 7.76 7.06 6.96 7.20 7.31 8.03 7.62 8.05 

Cost of funding earning assets........................... 3.40 3.61 3.54 3.45 3.35 3.50 3.31 3.52 3.51 3.21 3.06 

Net interest margin.......................................... 3.90 4.22 4.36 4.31 3.71 3.46 3.89 3.79 4.51 4.41 4.99 

Noninterest income to earning assets.................. 2.85 1.11 1.71 2.62 3.19 3.66 2.45 2.05 2.88 1.58 3.22 

Noninterest expense to earning assets.................. 4.03 3.74 3.87 4.02 4.07 4.36 3.87 3.40 4.33 3.89 4.44 

Loan and lease loss provision to assets............... 0.67 0.32 0.38 0.66 0.74 0.74 0.51 0.73 0.66 0.33 0.87 

Net operating income to assets........................... 1.11 0.87 1.16 1.26 1.08 1.01 1.09 0.98 1.46 1.11 1.56 

Pretax return on assets.................................... 1.73 1.17 1.68 2.02 1.71 1.61 1.67 1.51 2.17 1.62 2.51 

Return on assets............................................. 1.15 0.90 1.19 1.31 1.13 1.05 1.13 1.03 1.49 1.16 1.63 

Return on equity............................................. 13.09 7.95 12.19 13.77 13.43 12.74 12.21 12.35 16.48 12.12 15.95 

Net charge-offs to loans and leases..................... 0.94 0.35 0.42 1.03 1.06 1.20 0.74 0.80 0.87 0.45 1.24 

Loan and lease loss provision to net charge-offs...... 118.25 149.94 140.52 101.60 119.45 120.80 105.66 133.82 112.91 125.88 110.58 

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

Condition Ratios (%) 

57.73 69.65 62.85 55.78 56.83 59.37 58.66 56.09 57.59 63.32 52.14 

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

Loss allowance to:

85.22 91.38 91.15 89.48 83.03 82.09 84.28 88.11 90.44 89.40 87.69 

 Loans and leases.......................................... 1.85 1.42 1.44 1.79 1.97 2.12 1.61 1.76 1.72 1.43 2.07

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

Noncurrent assets plus

131.13 129.46 152.35 167.54 123.48 124.98 125.42 120.58 165.99 136.40 174.60 

 other real estate owned to assets........................ 0.92 0.81 0.73 0.73 1.00 0.97 0.88 1.04 0.77 0.72 0.81 

Equity capital ratio............................................. 9.09 10.89 9.67 9.75 8.77 8.60 9.73 8.45 8.92 9.48 10.34 

Core capital (leverage) ratio.............................. 7.79 10.62 9.17 8.74 7.23 7.24 7.99 7.60 8.48 8.57 8.83 

Tier 1 risk-based capital ratio.............................. 9.90 15.85 12.87 11.83 8.86 9.74 9.76 9.02 11.32 12.56 10.83 

Total risk-based capital ratio.............................. 12.72 16.95 14.05 13.77 12.17 12.70 12.64 12.15 13.01 14.09 13.52 

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

Structural Changes 

87.06 71.09 78.56 88.73 89.69 79.25 88.06 99.43 94.64 70.08 89.82 

New charters................................................ 128 123 4 0 1 17 37 19 14 8 33 

Banks absorbed by mergers........................... 356 159 163 25 9 35 73 97 60 44 47 

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

PRIOR FULL YEARS 

(The way it was...) 

3 3 0 0 0 1 0 1 0 1 0 

Number of institutions................................2000 8,315 4,837 3,081 314 83 664 1,426 1,792 2,144 1,383 906

 ................................................1998 8,773 5,408 2,973 321 71 693 1,445 1,904 2,265 1,517 949

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

Total assets (in billions).............................2000 6,244.6 230.9 773.6 879.4 4,360.7 2,180.8 1,611.9 1,072.4 419.0 302.3 658.2

 ................................................1998 5,442.5 252.3 726.8 921.8 3,541.6 1,922.3 1,211.4 889.3 376.5 304.7 738.3

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

Return on assets (%)................................2000 1.19 1.00 1.28 1.28 1.16 1.30 1.05 1.03 1.42 0.97 1.38

 ................................................1998 1.19 1.13 1.31 1.52 1.08 1.06 1.30 1.25 1.50 1.13 1.11

 ................................................1996 

Net charge-offs to loans & leases (%)

1.19 1.16 1.28 1.31 1.12 1.10 1.22 1.21 1.43 1.22 1.24 

 ................................................2000 0.67 0.41 0.33 0.70 0.75 0.79 0.61 0.40 0.83 0.43 1.00

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

 ................................................1996 

Noncurrent assets plus 

0.58 0.27 0.42 0.89 0.52 0.63 0.45 0.44 0.70 0.35 0.79 

OREO to assets (%)...............................2000 0.74 0.67 0.61 0.64 0.79 0.74 0.82 0.74 0.61 0.62 0.73

 ................................................1998 0.65 0.71 0.62 0.71 0.64 0.78 0.55 0.56 0.57 0.59 0.67

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

Equity capital ratio (%)..............................2000 8.50 11.06 9.59 8.98 8.07 8.00 8.66 7.91 9.49 8.93 9.87

 ................................................1998 8.49 10.95 9.52 9.46 7.85 7.80 9.10 8.27 8.72 8.83 9.29

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

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 6 First Quarter 2002 
TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

March 31, 2002 

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........................... 1.16 1.50 1.09 1.00 1.21 1.11 0.98 1.56 1.12 1.16 0.97 

Construction and development........................... 1.23 1.59 1.15 1.26 1.23 0.92 0.88 1.56 1.07 1.50 1.65 

Commercial real estate.................................... 0.85 1.20 0.85 0.89 0.80 0.81 0.69 1.19 0.97 0.88 0.66 

Multifamily residential real estate........................ 0.64 0.61 0.53 0.49 0.73 0.35 0.48 1.18 0.20 0.61 0.57 

Home equity loans.......................................... 0.62 0.71 0.56 0.64 0.63 0.46 0.61 0.79 0.58 0.42 0.51 

Other 1-4 Family residential.............................. 1.44 1.73 1.40 1.09 1.52 1.24 1.31 2.07 1.19 1.33 1.13 

Commercial and industrial loans........................... 1.09 1.98 1.51 1.46 0.95 1.07 0.72 1.29 1.68 1.42 1.27 

Loans to individuals............................................. 2.06 2.43 2.07 2.07 2.05 2.26 1.78 1.86 2.32 1.77 1.94 

Credit card loans............................................. 2.50 2.27 4.67 2.45 2.44 2.65 2.80 2.06 2.57 1.40 2.07 

Other loans to individuals................................. 1.79 2.43 1.76 1.85 1.75 1.90 1.63 1.83 1.89 1.78 1.74 

All other loans and leases (including farm)............... 0.87 1.87 1.48 0.86 0.79 0.73 0.55 1.12 1.65 1.66 0.82 

Total loans and leases....................................... 1.26 1.73 1.29 1.26 1.23 1.30 0.97 1.47 1.57 1.33 1.20 

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

Percent of Loans Noncurrent* 

1.15 0.50 0.79 1.26 1.16 0.30 1.01 1.52 3.17 1.61 1.96 

All real estate loans............................................. 1.00 1.02 0.87 0.86 1.08 1.11 0.81 1.34 0.77 0.93 0.77 

Construction and development........................... 1.06 1.01 1.01 1.04 1.10 1.15 0.88 1.25 0.82 0.87 1.29 

Commercial real estate.................................... 1.01 1.13 0.95 0.94 1.07 1.00 0.89 1.33 0.93 1.01 0.84 

Multifamily residential real estate........................ 0.43 0.75 0.52 0.39 0.40 0.28 0.40 0.56 0.49 0.86 0.35 

Home equity loans.......................................... 0.36 0.34 0.33 0.38 0.36 0.28 0.32 0.50 0.29 0.34 0.25 

Other 1-4 Family residential.............................. 1.05 0.89 0.76 0.83 1.18 1.09 0.85 1.66 0.66 0.83 0.59 

Commercial and industrial loans........................... 2.61 1.74 1.46 1.78 2.92 3.22 2.51 2.36 1.29 1.71 2.32 

Loans to individuals............................................. 1.49 0.95 0.88 1.27 1.62 2.11 0.81 0.75 1.67 0.70 1.45 

Credit card loans............................................. 2.28 1.70 3.31 2.34 2.24 2.50 2.08 1.65 2.15 1.04 2.06 

Other loans to individuals................................. 1.01 0.93 0.59 0.66 1.16 1.75 0.62 0.62 0.84 0.69 0.45 

All other loans and leases (including farm)............... 0.90 1.26 1.24 0.76 0.88 0.85 0.81 0.88 1.35 1.37 1.00 

Total loans and leases....................................... 1.47 1.16 0.99 1.11 1.65 1.90 1.21 1.48 1.14 1.10 1.23 

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

Percent of Loans Charged-off (net, annualized) 

0.73 0.58 0.16 0.60 0.77 0.09 1.15 1.36 1.02 0.29 0.33 

All real estate loans............................................. 0.15 0.06 0.09 0.14 0.18 0.12 0.12 0.29 0.08 0.07 0.09 

Construction and development........................... 0.14 0.09 0.10 0.25 0.11 0.22 0.08 0.12 0.09 0.03 0.29 

Commercial real estate.................................... 0.16 0.10 0.11 0.15 0.20 0.09 0.11 0.35 0.12 0.08 0.09 

Multifamily residential real estate........................ 0.04 0.05 0.05 0.06 0.03 0.01 0.01 0.12 0.02 -0.01 0.03 

Home equity loans.......................................... 0.21 0.02 0.04 0.16 0.24 0.06 0.19 0.38 0.14 0.14 0.06 

Other 1-4 Family residential.............................. 0.14 0.05 0.07 0.10 0.17 0.08 0.12 0.30 0.06 0.08 0.03 

Commercial and industrial loans........................... 1.45 0.48 0.51 1.22 1.63 1.48 1.43 1.47 0.66 0.76 1.96 

Loans to individuals............................................. 3.98 0.73 1.67 3.29 4.52 5.93 1.57 2.01 4.71 0.99 4.09 

Credit card loans............................................. 8.19 3.55 8.40 6.87 8.42 10.68 3.52 5.34 7.12 3.32 5.60 

Other loans to individuals................................. 1.47 0.66 0.83 1.22 1.69 1.86 1.27 1.48 0.45 0.92 1.52 

All other loans and leases (including farm)............... 0.45 0.20 0.27 0.40 0.47 0.45 0.22 0.66 0.17 0.37 0.72 

Total loans and leases....................................... 1.14 0.23 0.34 0.91 1.39 1.84 0.62 0.84 1.33 0.38 1.26 

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

Loans Outstanding (in billions) 

0.12 1.13 0.07 0.21 0.11 0.13 0.20 0.02 0.05 0.30 0.03 

All real estate loans............................................. $1,810.6 $80.1 $356.0 $314.8 $1,059.6 $371.1 $546.9 $433.6 $118.6 $91.6 $248.8 

Construction and development........................... 194.4 7.3 44.6 40.9 101.6 20.7 69.5 47.8 10.5 14.3 31.6 

Commercial real estate.................................... 518.7 24.0 140.2 112.6 242.0 85.6 158.1 122.0 32.5 35.0 85.5 

Multifamily residential real estate........................ 65.9 1.8 12.6 13.9 37.6 15.5 16.5 17.3 3.4 2.8 10.4 

Home equity loans.......................................... 166.5 2.3 16.1 19.2 128.9 33.7 53.0 52.8 5.6 1.6 19.8 

Other 1-4 Family residential.............................. 794.0 34.5 127.6 123.8 508.0 182.9 239.6 184.8 55.5 33.9 97.4 

Commercial and industrial loans........................... 966.8 23.2 94.3 114.5 734.9 327.8 240.1 223.3 42.7 37.2 95.7 

Loans to individuals............................................. 649.2 16.4 56.4 92.9 483.5 265.6 122.7 95.3 61.1 22.1 82.4 

Credit card loans............................................. 247.9 0.4 6.1 33.4 208.0 128.6 16.1 12.5 38.6 0.6 51.3 

Other loans to individuals................................. 401.4 16.0 50.4 59.6 275.4 137.0 106.6 82.8 22.5 21.5 31.1 

All other loans and leases (including farm)............... 470.5 15.2 27.0 37.7 390.5 189.7 97.5 113.5 28.8 9.6 31.3 

Total loans and leases....................................... 3,897.2 134.9 533.7 560.0 2,668.5 1,154.2 1,007.2 865.8 251.3 160.5 458.2 

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

Memo: Other Real Estate Owned (in millions) 

41.5 0.3 1.5 3.5 36.3 11.8 11.7 8.9 0.9 0.6 7.5 

All other real estate owned.................................... $3,809.0 $325.9 $974.6 $633.4 $1,875.1 $570.7 $1,383.9 $798.7 $279.3 $324.2 $452.1 

Construction and development........................... 360.7 35.2 172.2 67.2 86.1 51.9 127.6 55.5 34.1 47.6 44.0 

Commercial real estate.................................... 1,821.0 146.9 413.2 337.4 923.5 263.3 749.8 255.6 114.5 160.4 277.3 

Multifamily residential real estate........................ 64.6 8.0 37.0 10.2 9.5 9.4 13.4 15.4 13.7 5.0 7.8 

1-4 Family residential....................................... 1,380.1 111.2 308.5 213.0 747.5 141.8 479.5 461.0 97.7 90.4 109.7 

Farmland...................................................... 76.7 24.6 42.3 4.2 5.5 2.0 13.6 11.2 19.2 20.8 9.8 

Other real estate owned in foreign offices............ 105.9 0.0 1.4 1.5 103.0 102.3 0.0 0.0 0.0 0.0 3.6 

*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. N/A - Not Available 

FDIC Quarterly Banking Profile 

First Quarter 2002 7 FDIC-Insured Commercial Banks 
SAVINGS INSTITUTION PERFORMANCE—FIRST QUARTER, 2002 

n Earnings In The First Quarter Were Down Slightly, To $3.6 Billion 

n Rising Net Interest Income Kept Earnings Strong 

n Net Charge-Offs And Noncurrent Loans Continue To Creep Up 

n Assets Of “Problem” Thrifts Rise Sharply To $15 Billion 

Earnings Improved Over Year-Ago EARNINGS WERE DOWN SLIGHTLY, BUT REMAIN 

Results AHEAD OF YEAR-AGO LEVELS 

$ Billions 

Earnings of FDIC-insured savings institutions 

declined to $3.6 billion from record earnings of 

$3.8 billion in the fourth quarter, but were $715 million higher (24 percent) than in the first quarter of 

2001. Fourth quarter earnings received a boost 

from the settlement with the owners of a failed thrift 

that was placed in conservatorship.1 In the first 

quarter this conservatorship realized a loss of $370 

million from the sale of 62 percent of its assets. 

Without this loss industry earnings would have set 

another quarterly record. Fewer than 8 percent of 

savings institutions reported losses in the first 

2.6 

2.8 3.0 

2.0 

2.7 2.9 2.8 2.7 

2.9 

2.7 

2.5 2.6 

2.9 

3.4 3.4 

3.8 3.6 

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

0 

1 

2 

3 

4 

5 

1998 1999 2000 2001 2002 

Securities and Other 

Gains/Losses, Net 

Net Operating Income 

quarter, down from over 10 percent a year ago. 

The average return on assets (ROA) was 1.11 this 

quarter, down from 1.18 percent in the fourth quarter, but up from 0.95 percent a year ago. 

Earnings Gains Were Widespread 

Earnings improved from a year ago at over 72 percent of savings institutions. With an improvement 

in net interest margins over the past year, net interest income grew by 23 percent or $1.9 billion from 

the first quarter of 2001. Factors that limited firstquarter results included provision expenses for 

loan losses, which were $119 million (17 percent) 

higher than a year ago, as asset quality deteriorated. Growth in noninterest income was weak, up by 

only $10 million from a year ago. Noninterest 

expenses were up more strongly, rising by $513 

million (7 percent). Gains on the sales of securities 

were $174 million lower than in the first quarter of 

last year. Profitability improved in every size group 

and region except where the FDIC conservator1 Superior Federal Bank, FSB in Hinsdale, Illinois operates as a 

conservatorship under FDIC control. This conservatorship was 

created from a failed thrift in July of 2001. The former owners of 

this institution reached a settlement with the FDIC in the fall of 

2001 and provided cash and a note to cover some of the losses 

expected from this failure. Fourth quarter earnings included $450 

million from this conservatorship, which were primarily proceeds 

from this settlement. 

ship’s loss was included (the $100 million to $1 billion size group and the Central Region). 

Net Interest Margins Help Sustain 

Earnings 

During the first quarter the industry’s net interest 

margin expanded by 8 basis points to 3.52 percent, the highest level since early 1993 and 49 

basis points higher than a year ago. Thrifts 

enjoyed a rapid decline in the cost of funding earning assets, down 44 basis points during the first 

quarter, while the yield on earning assets also fell, 

down 36 basis points. All size groups reported 

improved net interest margins, but institutions with 

assets of $1 billion to $5 billion had the smallest 

increase, up 2 basis points, primarily because their 

asset yields were down sharply, by 45 basis points. 

This quarter was the third quarter in a row where 

thrifts with less than $100 million in assets reported a lower net interest margins, at 3.34 percent, 

than the rest of the industry, at 3.52 percent. 

Profitability at Most Small Thrifts 

Improved 

Earnings improved at small thrifts with less than 

$100 million in assets primarily because of 

improved net interest margins and lower operating 

costs. These thrifts reported an average ROA of 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 First Quarter 2002 
NET INTEREST MARGIN IMPROVED FOR BOTH 

SMALL AND LARGE THRIFTS 

Net Interest Margin (%) 

4.0 

3.5 

3.0 

2.5 

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

Assets < $100 Million 

3.52 

3.34 

Assets > $100 Million 

1998 1999 2000 2001 2002 

0.82 percent, up from 0.61 percent a year ago. 

Noninterest income for these thrifts was 2.23 percent of earning assets, down from 2.54 percent a 

year ago, while noninterest expenses were 4.34 

percent, down from 4.87 percent a year ago. A few 

specialty thrifts derive over 90 percent of their revenue from noninterest income, and without these 

11 institutions the remaining 551 small thrifts still 

showed improved profitability, with an average 

ROA of 0.56 percent, up from 0.42 percent a year 

ago. While noninterest income contributed much 

less to revenue for these 551 thrifts (0.80 percent 

of earning assets) they were able to reduce operating costs. Noninterest expense was 3.34 percent of earning assets for these non-specialty 

thrifts, significantly lower than 3.63 percent a year 

ago, with 54 percent of the group reporting lower 

expense rates. 

FEE INCOME CONTRIBUTED LESS TO IMPROVED 

PROFITABILITY THAN NET INTEREST MARGINS 

Quarterly Noninterest Income, % of Net Operating Revenue 

Net Charge-offs Increased Slightly From 

Year-ago Levels 

Net charge-offs increased 12 percent ($61 million) 

from the first quarter of 2001, while the rate rose 

slightly, to 0.26 percent of loans from 0.25 percent 

as loans increased. Net charge-offs on real estate 

loans were 2 basis points higher than a year ago, 

primarily because of a 2-basis-point increase in the 

net charge-off rate on residential mortgages and a 

7-basis-point increase in the net charge-off rate for 

real estate construction loans. Net charge-offs for 

commercial & industrial (C&I) loans also increased 

by 2 basis points to 1.39 percent of these loans. 

The net charge-off rate for loans to individuals 

actually declined a basis point to 1.92 percent 

because of lower net charge-offs on credit card 

loans, which fell 60 basis points to 3.91 percent. 

Noncurrent Loans Continue to Rise 

Noncurrent loans rose $430 million during the first 

quarter to $7.9 billion or 0.92 percent of loans. A 

year ago noncurrent loans were $1.6 billion lower, 

amounting to 0.74 percent of loans. While noncurrent real estate construction loans jumped 

sharply in the first quarter, noncurrent home mortgages have shown a slower rise over the last four 

quarters. The noncurrent rate for home mortgages 

rose 5 basis points in the first quarter to 0.83 percent, or 17 basis points higher than a year ago. 

The noncurrent rate for real-estate construction 

loans rose 32 basis points during the quarter to 

1.71 percent, which was 51 basis points higher 

than a year ago. The noncurrent rate for C&I loans 

rose 24 basis points to 2.21 percent, which was 55 

basis points higher than a year ago. 

NONCURRENT REAL ESTATE CONSTRUCTION 

LOANS ROSE RAPIDLY 

Percent of Loans 

0 

10 

20 

30 

40 

50 

40.1 

Assets < $100 Million 

21.4 

Assets > $100 Million 

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 

0 

0.5 

1.0 

1.5 

2.0 

Total Real Estate 

Construction and Land 

1-4 Family 

Multifamily 

Commercial Loans 

3/00 6/00 9/00 12/00 3/01 6/01 9/01 12/01 3/02 

FDIC Quarterly Banking Profile 

First Quarter 2002 9 FDIC-Insured Savings Institutions 
NONCURRENT LOAN GROWTH EXCEEDS not generally include goodwill, increased by $2.0 

RESERVE GROWTH 

$ Billions Coverage Ratio (%) 

28 

Coverage Ratio (%) 

Noncurrent Loans ($) 

Loan-Loss Reserves ($) 

140 

24 120 

20 100 

16 80 

12 60 

8 40 

4 20 

0 0 

1997 1998 1999 2000 2001 2002 

Loan Loss Reserves Failed to Keep Pace 

with the Rise in Noncurrent Loans 

Loan loss provisions exceeded net charge-offs by 

$232 million, contributing to a $205-million increase in loan loss reserves. However, the increase in reserves was less than the $430-million 

increase in noncurrent loans, causing a decline in 

the coverage ratio—loan loss reserves to noncurrent loans. The coverage ratio fell to 99 cents in 

loan loss reserves for every dollar of noncurrent 

loans from $1.02 at the end of 2001. This was the 

first time since early 1998 that this ratio has been 

below $1.00. 

Industry Assets Grew to Over $1.3 Trillion 

Industry assets grew $18.6 billion in the first quarter with strong growth in securities, up $17.2 billion 

(6 percent). Home mortgages declined by $14.8 

billion for the industry during the first quarter, with 

817 savings institutions (54 percent) reporting a 

decline in this category. Goodwill and other intangible assets increased by $4.9 billion because of a 

large merger transaction that accounted for 88 percent of the increase.2 Funding continued to shift 

towards deposits in the first quarter. Deposits grew 

by $22.3 billion, while other borrowed funds fell by 

$10.2 billion. Federal Home Loan Bank advances 

declined by $15.2 billion. 

Capital Levels Improved For All 

Capital Ratios 

Equity capital rose $6.9 billion to $117.2 billion or 

8.89 percent of assets. Core capital, which does 

2 Washington Mutual Bank FA of Stockton, California absorbed The 

Dime Savings Bank of New York, FSB of New York, New York 

with assets of $28 billion at the end of 2001. 

billion and reached 7.89 percent of average assets 

from 7.80 percent at year-end. With a slight rise in 

interest rates during the first quarter, the value of 

available-for-sale (AFS) securities declined by 

$784 million. This decline limited the rise in equity 

capital, but did not affect core capital. 

CAPITAL IMPROVED WITH STRONG EARNINGS 

Ratio (%) 

18 

16 

14 

12 

10 

8 

6 

4 

Core Capital (Leverage) 

Equity to Assets 

Tier 1 Risk-Based Capital 

Total Risk-Based Capital 

1996 1997 1998 1999 2000 2001 2002 

Problem Bank Assets Rise Sharply 

There were 1,515 savings institutions at the end of 

March 2002, which was a decline of 18 from the 

year-end level of 1,533. There were 18 mergers in 

the first quarter. Consolidation within the industry 

involved 12 savings institutions with $31.9 billion in 

assets and commercial banks absorbed 6 other 

savings institutions with $2.6 billion in assets. 

Another 2 institutions, with assets of $1.7 billion, 

converted their charters to commercial bank charters. There were 2 new institutions added during 

the first quarter: a de novo charter and a credit 

union, with $42 million in assets, that converted to 

a state-chartered savings bank with mutual ownership. Three savings institutions with $595 million in 

assets converted from mutual ownership to stock 

ownership during the quarter. One of these simultaneously merged with another institution. No savings institutions failed during the first quarter, the 

second consecutive quarter without a failure for the 

industry. The number of “problem” thrifts increased 

slightly to 22 from 19 at the end of last year. Assets 

of “problem” thrifts increased dramatically, rising to 

$15.0 billion from $3.7 billion. Assets of “problem” 

thrifts have not been this high since 1994. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 First Quarter 2002 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

2002* 2001* 2001 2000 1999 1998 1997 

Return on assets (%)............................................. 1.11 0.95 1.09 0.92 1.00 1.01 0.93 

Return on equity (%)............................................. 12.83 11.27 12.76 11.14 11.73 11.35 10.84 

Core capital (leverage) ratio (%).............................. 7.89 7.72 7.80 7.80 7.86 7.85 7.95 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.68 0.58 0.66 0.56 0.58 0.72 0.95 

Net charge-offs to loans (%).................................... 0.26 0.25 0.28 0.20 0.17 0.22 0.25 

Asset growth rate (%)............................................. 5.01 8.43 6.76 5.99 5.52 6.06 -0.28 

Net interest margin................................................ 3.52 3.03 3.23 2.96 3.10 3.10 3.23 

Net operating income growth (%).............................. 30.91 -14.67 7.35 3.05 16.62 7.71 19.98 

Number of institutions reporting.............................. 1,515 1,584 1,533 1,589 1,642 1,690 1,780 

Percentage of unprofitable institutions (%).................. 7.79 10.23 8.22 8.56 8.28 5.27 4.10 

Number of problem institutions................................. 22 17 19 18 13 15 12 

Assets of problem institutions (in billions).................. $15 $6 $4 $7 $6 $6 $2 

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

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

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

(dollar figures in millions) 

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

Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

2002 2001 2001 01:1-02:1 

1,515 1,533 1,584 -4.4 

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

CONDITION DATA

271,246 262,438 250,548 8.3 

 Total assets..................................................................... $1,318,307 $1,299,694 $1,255,374 5.0

 Loans secured by real estate............................................. 746,275 758,414 740,482 0.8 

1-4 Family Residential................................................... 583,132 597,892 585,254 -0.4 

Multifamily residential property....................................... 59,705 58,991 57,926 3.1 

Commercial real estate................................................... 65,708 63,157 61,424 7.0 

Construction, development, and land................................. 37,731 38,375 35,878 5.2

 Commercial & industrial loans.......................................... 38,447 36,734 35,336 8.8

 Loans to individuals......................................................... 68,905 69,407 65,611 5.0

 Other loans & leases...................................................... 6,789 6,984 6,403 6.0

 Less: Unearned income & contra accounts........................ 158 166 180 -12.1

 Total loans & leases......................................................... 860,258 871,373 847,652 1.5

 Less: Reserve for losses................................................... 7,856 7,651 7,467 5.2

 Net loans & leases............................................................ 852,402 863,722 840,185 1.5

 Securities........................................................................ 302,319 285,117 279,510 8.2

 Other real estate owned................................................... 1,065 1,050 998 6.8

 Goodwill and other intangibles.......................................... 26,207 21,347 19,271 36.0

 All other assets............................................................... 136,313 128,458 115,410 18.1 

Total liabilities and capital................................................... 1,318,307 1,299,694 1,255,374 5.0

 Deposits........................................................................ 820,109 797,825 762,198 7.6

 Other borrowed funds...................................................... 355,191 365,411 362,381 -2.0

 Subordinated debt............................................................ 3,747 3,910 3,166 18.4

 All other liabilities............................................................ 22,038 22,250 21,200 4.0

 Equity capital.................................................................. 117,221 110,297 106,428 10.1 

Loans and leases 30-89 days past due................................. 8,737 9,496 8,348 4.7 

Noncurrent loans and leases................................................ 7,904 7,474 6,258 26.3 

Restructured loans and leases............................................. 1,622 1,644 1,388 16.9 

Direct and indirect investments in real estate........................... 429 423 625 -31.3 

Mortgage-backed securities................................................ 198,157 196,511 211,451 -6.3 

Earning assets.................................................................. 1,205,156 1,192,572 1,157,739 4.1 

FHLB Advances............................................................... 238,513 253,741 258,604 -7.8 

Unused loan commitments................................................... 316,465 320,184 275,343 14.9 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary 

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

2001 2000 %Change 2002 2001 01:1-02:1 

$83,907 $83,780 0.2 $19,445 $22,341 -13.0 

47,296 52,018 -9.1 8,922 13,762 -35.2

36,611 31,762 15.3 10,523 8,579 22.7 

2,804 2,033 37.9 802 683 17.5 

11,731 11,381 3.1 2,962 2,952 0.3 

28,725 25,479 12.7 7,591 7,078 7.3 

4,257 799 432.5 655 830 -21.0 

7,318 5,723 27.9 2,158 1,641 31.5 

-401 -3 N/M 49 -35 N/M

13,350 10,705 24.7 3,637 2,923 24.5 

2,312 1,550 49.2 570 509 11.9 

6,477 5,861 10.5 1,554 1,185 31.1

10,945 10,195 7.4 3,151 2,407 30.9 

N/M - Not Meaningful 

FDIC Quarterly Banking Profile 

First Quarter 2002 11 FDIC-Insured Commercial Banks 
TABLE III-B. First Quarter 2002, FDIC-Insured Savings Institutions 

FIRST QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,515 562 805 103 45 601 197 385 120 107 105 

Total assets (in billions).................................... $1,318.3 $28.8 $247.6 $192.2 $849.7 $426.9 $96.9 $170.2 $43.0 $75.4 $506.0 

Total deposits (in billions).................................... 820.1 23.0 188.0 136.0 473.1 287.3 70.1 121.9 26.8 42.4 271.5 

Net income (in millions).................................... 3,637 58 162 534 2,883 1,209 195 159 91 268 1,716 

% of unprofitable institutions.............................. 7.8 14.6 4.1 1.9 2.2 6.8 8.6 10.4 9.2 4.7 3.8 

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

Performance ratios (annualized, %) 

72.2 65.7 75.3 77.7 86.7 72.0 76.6 71.2 64.2 68.2 81.9 

Yield on earning assets.................................... 6.50 6.55 6.64 6.56 6.45 6.48 6.81 6.91 6.69 6.35 6.33 

Cost of funding earning assets........................... 2.98 3.21 3.13 3.06 2.92 3.00 3.57 3.52 3.40 2.70 2.68 

Net interest margin.......................................... 3.52 3.34 3.51 3.50 3.53 3.49 3.24 3.38 3.29 3.65 3.65 

Noninterest income to earning assets.................. 0.99 2.23 0.46 0.88 1.13 0.85 1.75 0.76 0.91 1.20 1.02 

Noninterest expense to earning assets.................. 2.54 4.34 3.06 2.70 2.28 2.41 3.36 3.17 2.79 2.79 2.21 

Loan and lease loss provision to assets............... 0.25 0.11 0.15 0.14 0.30 0.15 0.68 0.40 0.16 0.38 0.18 

Net operating income to assets........................... 0.97 0.66 0.24 0.98 1.18 1.06 0.53 -0.01 0.73 1.26 1.27 

Pretax return on assets................................. 1.78 1.24 0.76 1.62 2.12 1.77 1.27 1.10 1.30 1.74 2.15 

Return on assets............................................. 1.11 0.82 0.26 1.13 1.37 1.15 0.82 0.37 0.84 1.44 1.36 

Return on equity............................................. 12.83 6.60 2.54 12.23 17.24 11.88 9.64 4.10 9.46 16.88 17.63 

Net charge-offs to loans and leases..................... 0.26 0.13 0.15 0.17 0.32 0.19 0.69 0.43 0.20 0.39 0.16 

Loan and lease loss provision to net charge-offs...... 140.80 135.50 142.46 121.70 142.93 127.85 141.07 125.91 120.91 155.14 164.81 

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

Condition Ratios (%) 

55.55 77.67 76.45 60.73 48.19 54.38 67.02 75.93 65.59 57.33 46.80 

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

Loss allowance to: 

91.42 93.87 93.33 92.69 90.49 92.56 93.33 92.03 92.68 93.02 89.53 

Loans and leases.......................................... 0.91 0.77 0.88 1.06 0.89 0.97 1.04 0.82 0.78 1.08 0.87 

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

Noncurrent assets plus 

99.39 79.50 113.20 102.97 95.81 125.99 112.53 88.60 114.50 67.44 90.79 

other real estate owned to assets..................... 0.68 0.78 0.60 0.83 0.67 0.52 0.74 0.79 0.68 1.09 0.70 

Noncurrent RE loans to RE loans........................ 0.89 0.94 0.72 0.95 0.92 0.70 0.68 0.96 0.64 1.89 0.94 

Equity capital ratio............................................. 8.89 12.39 10.31 9.21 8.29 9.70 8.56 9.38 8.96 8.53 8.16 

Core capital (leverage) ratio.............................. 7.89 12.07 9.89 8.54 7.01 8.76 8.44 8.26 8.43 8.40 6.81 

Tier 1 risk-based capital ratio.............................. 12.83 21.80 16.34 13.63 11.35 14.52 12.92 11.98 14.70 13.41 11.47 

Total risk-based capital ratio.............................. 14.19 22.84 17.40 14.73 12.87 15.80 14.38 13.31 15.82 14.39 12.96 

Gross real estate assets to gross assets............... 71.32 67.69 69.79 73.06 71.49 71.94 65.25 71.00 74.61 61.13 73.31 

Gross 1-4 family mortgages to gross assets............ 43.97 46.34 41.92 35.98 46.29 39.24 38.93 47.83 43.95 25.43 50.39 

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

Structural Changes (YTD) 

103.94 81.21 86.06 91.90 115.61 88.93 94.17 100.57 108.08 107.25 122.93 

New Charters................................................ 1 1 0 0 0 0 1 0 0 0 0 

Thrifts absorbed by mergers........................... 18 4 12 1 1 9 4 3 1 0 1 

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

PRIOR FIRST QUARTERS

 (The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Number of institutions...............................2001 1,584 620 822 100 42 626 209 405 123 108 113

 ...............................................1999 1,669 691 835 108 35 648 232 432 127 116 114

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

Total assets (in billions).............................2001 $1,255.4 $31.5 $251.6 $192.6 $779.6 $413.2 $88.8 $188.5 $42.8 $68.1 $453.9

 ................................................1999 1,109.8 35.7 242.0 215.0 617.1 366.1 67.2 178.1 38.5 72.0 388.0

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

Return on assets (%)................................2001 0.95 0.61 0.71 0.77 1.09 0.98 0.56 0.68 0.75 1.15 1.11

 ................................................1999 0.98 0.66 0.96 1.11 0.97 0.92 1.01 1.08 0.75 1.08 1.00

 ................................................1997 

Net charge-offs to loans & leases (%) 

0.96 0.76 0.95 1.11 0.89 0.98 0.89 1.01 1.10 1.07 0.87 

 ................................................2001 0.25 0.07 0.10 0.25 0.30 0.20 0.32 0.56 0.12 0.23 0.14

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

 ................................................1997 

Noncurrent assets plus 

0.27 0.07 0.11 0.48 0.27 0.27 0.46 0.24 0.04 0.43 0.25 

OREO to assets (%)*.....................2001 0.58 0.65 0.53 0.85 0.52 0.52 0.60 0.76 0.76 0.89 0.48

 ................................................1999 0.68 0.77 0.64 1.01 0.58 0.73 0.62 0.70 0.53 0.95 0.60

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

Equity capital ratio (%)..............................2001 8.48 12.94 10.55 8.88 7.53 9.91 8.53 8.46 9.31 8.16 7.14

 ................................................1999 8.62 12.14 10.79 9.11 7.40 9.74 10.03 9.20 10.28 8.29 6.96

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

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 12 First Quarter 2002 
TABLE IV-B. Full Year 2001, FDIC-Insured Savings Institutions 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- South 

west west West 

1,533 576 812 101 44 611 201 387 122 107 105 

Total assets (in billions).................................... $1,299.7 $29.5 $251.4 $191.1 $827.7 $444.3 $95.1 $170.3 $43.2 $73.4 $473.4 

Total deposits (in billions).................................... 797.8 23.5 190.4 132.2 451.7 293.8 66.5 120.5 26.7 42.1 248.2 

Net income (in millions).................................... 13,350 182 1,830 2,134 9,204 3,600 546 2,303 348 915 5,638 

% of unprofitable institutions.............................. 8.2 16.1 3.3 5.0 2.3 7.0 9.0 9.6 11.5 7.5 5.7 

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

Performance Ratios (%) 

55.6 45.8 59.1 72.3 81.8 49.6 58.2 56.8 59.0 57.9 75.2 

Yield on earning assets.................................... 7.41 7.32 7.37 7.37 7.44 7.17 7.58 7.92 7.42 7.58 7.39 

Cost of funding earning assets........................... 4.18 4.10 4.08 4.08 4.23 3.87 4.61 4.58 4.50 4.13 4.21 

Net interest margin.......................................... 3.23 3.21 3.29 3.29 3.20 3.30 2.97 3.34 2.91 3.45 3.18 

Noninterest income to earning assets.................. 1.04 2.67 0.84 1.27 0.98 0.95 1.69 1.87 0.95 1.34 0.65 

Noninterest expense to earning assets.................. 2.54 4.82 2.91 2.73 2.29 2.54 3.43 3.17 2.52 2.95 2.06 

Loan and lease loss provision to assets............... 0.23 0.14 0.15 0.15 0.27 0.14 0.56 0.42 0.22 0.33 0.16 

Net operating income to assets........................... 0.89 0.48 0.67 1.10 0.93 0.92 0.37 1.04 0.67 1.14 0.90 

Pretax return on assets................................. 1.68 1.06 1.13 1.66 1.88 1.45 0.95 2.05 1.26 1.59 1.97 

Return on assets............................................. 1.09 0.64 0.76 1.20 1.18 0.86 0.61 1.43 0.83 1.31 1.25 

Return on equity............................................. 12.76 5.06 7.22 12.96 15.55 8.75 7.22 16.80 9.11 15.56 17.35 

Net charge-offs to loans and leases..................... 0.28 0.14 0.14 0.17 0.35 0.18 0.46 0.69 0.20 0.35 0.16 

Loan and lease loss provision to net charge-offs...... 121.24 158.16 154.85 131.81 115.40 121.67 174.74 81.20 154.05 141.99 148.56 

Efficiency ratio................................................ 57.73 81.22 69.57 58.53 52.60 57.25 72.80 60.04 63.78 60.74 52.22 

Condition Ratios (%) 

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

Loss allowance to: 

91.76 93.82 93.39 91.86 91.16 92.01 93.34 91.34 92.51 93.24 91.06 

Loans and leases.......................................... 0.88 0.76 0.87 1.04 0.85 0.94 0.96 0.77 0.75 1.02 0.84 

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

Noncurrent assets plus 

102.37 76.77 113.15 108.99 98.78 126.17 118.35 90.58 103.07 69.05 94.34 

other real estate owned to assets..................... 0.66 0.78 0.60 0.79 0.64 0.53 0.69 0.75 0.73 1.04 0.67 

Noncurrent RE loans to RE loans........................ 0.83 0.95 0.71 0.94 0.83 0.68 0.65 0.91 0.68 1.72 0.87 

Equity capital ratio............................................. 8.49 12.47 10.44 9.32 7.56 9.67 8.45 8.82 8.92 8.53 7.22 

Core capital (leverage) ratio.............................. 7.80 12.09 9.96 8.62 6.80 8.61 8.35 8.39 8.35 8.38 6.58 

Tier 1 risk-based capital ratio.............................. 12.66 21.79 16.58 13.52 10.99 14.01 12.71 12.61 14.45 13.11 11.14 

Total risk-based capital ratio.............................. 14.01 22.83 17.64 14.58 12.51 15.30 14.14 13.96 15.53 14.06 12.63 

Gross real estate assets to gross assets............... 73.15 68.39 70.60 73.61 73.98 71.74 67.59 72.09 76.30 60.78 77.59 

Gross 1-4 family mortgages to gross assets............ 45.73 47.64 43.05 38.00 48.26 41.05 41.94 49.88 45.96 26.97 52.27 

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

Structural Changes 

108.26 82.94 87.65 96.42 121.73 94.10 100.72 104.28 111.17 109.18 128.49 

New charters................................................ 17 13 3 1 0 6 2 5 1 1 2 

Thrifts absorbed by mergers........................... 65 17 40 6 2 22 10 18 5 2 8 

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

PRIOR FULL YEARS

 (The way it was...) 

1 0 0 1 0 0 0 1 0 0 0 

Number of institutions...............................2000 1,589 627 817 105 40 627 211 405 125 110 111

 ...............................................1998 1,690 702 843 111 34 656 233 442 125 120 114

 ...............................................1996 1,926 845 920 125 36 730 278 500 145 129 144 

Total assets (in billions).............................2000 $1,217.3 $31.1 $244.9 $202.9 $738.4 $400.0 $85.9 $181.8 $42.9 $84.5 $422.2

 ................................................1998 1088.4 36.3 245.0 220.5 586.7 360.2 66.4 176.1 36.7 70.6 378.5

 ................................................1996 1029.0 43.7 270.8 258.3 456.2 345.4 63.2 175.8 50.3 78.3 316.0 

Return on assets (%)................................2000 0.92 0.54 0.76 0.90 1.00 0.90 0.59 0.94 0.53 1.06 1.02

 ................................................1998 1.01 0.77 0.89 1.08 1.04 0.97 0.93 0.97 0.92 1.19 1.05

 ................................................1996 

Net charge-offs to loans & leases (%) 

0.70 0.44 0.66 0.82 0.69 0.84 0.52 0.70 0.56 1.57 0.40 

 ................................................2000 0.20 0.06 0.09 0.36 0.19 0.14 0.31 0.37 0.16 0.22 0.14

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

 ................................................1996 

Noncurrent assets plus 

0.32 0.10 0.17 0.33 0.43 0.32 0.38 0.14 0.15 0.32 0.44 

OREO to assets (%)........................2000 0.56 0.64 0.53 0.89 0.48 0.54 0.62 0.75 0.71 0.84 0.42

 ................................................1998 0.72 0.77 0.69 1.03 0.61 0.79 0.66 0.69 0.54 0.87 0.66

 .................................................1996 1.09 0.96 0.99 1.25 1.08 1.26 0.99 0.65 0.67 1.11 1.24 

Equity capital ratio (%)..............................2000 8.45 13.14 10.53 8.86 7.46 10.02 8.50 8.49 9.35 8.00 6.95

 ................................................1998 8.68 12.33 10.74 9.03 7.47 9.80 10.16 9.16 9.64 8.20 7.14

 ................................................1996 8.34 11.40 9.94 8.29 7.13 9.12 9.44 8.69 8.71 8.10 7.09 

FDIC Quarterly Banking Profile 

First Quarter 1998 13 FDIC-Insured Savings Institutions 
TABLE V-B. Loan Performance, FDIC-Insured Savings Institutions 

March 31, 2002 

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........................... 0.96 1.76 0.99 0.82 0.95 0.73 0.96 1.32 1.32 1.32 0.93 

Construction, development, and land.................. 1.22 2.06 1.31 1.02 1.21 0.69 1.18 1.78 1.06 1.23 1.37 

Commercial real estate.................................... 0.76 1.31 0.82 0.85 0.60 0.64 1.32 1.21 1.44 1.34 0.24 

Multifamily residential real estate........................ 0.24 1.29 0.39 0.21 0.21 0.17 0.50 0.45 0.40 0.42 0.23 

Home equity loans.......................................... 0.26 0.47 0.37 0.27 0.22 0.28 0.34 0.55 0.38 0.04 0.05 

Other 1-4 Family residential.............................. 1.08 1.85 1.09 0.94 1.07 0.84 0.95 1.43 1.43 1.47 1.09 

Commercial and industrial loans........................... 1.43 2.50 1.87 1.08 1.36 1.30 2.25 1.75 2.36 0.81 1.25 

Loans to individuals............................................. 1.50 2.22 1.68 1.33 1.47 1.47 2.05 1.08 1.56 0.82 2.04 

Credit card loans............................................. 1.62 1.89 2.59 0.96 1.55 1.68 3.83 1.13 3.19 0.63 1.67 

Other loans to individuals................................. 1.47 2.27 1.57 1.36 1.45 1.45 1.44 1.06 1.45 1.02 2.09 

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

Percent of Loans Noncurrent* 

1.02 1.82 1.08 0.87 1.00 0.81 1.24 1.28 1.38 1.16 0.98 

All real estate loans............................................. 0.89 0.94 0.72 0.95 0.92 0.70 0.68 0.96 0.64 1.89 0.94 

Construction, development, and land.................. 1.71 1.50 1.15 1.41 2.18 1.28 0.96 1.54 0.89 1.70 2.86 

Commercial real estate.................................... 1.36 1.27 0.89 1.50 1.68 0.98 1.06 1.31 0.78 3.56 1.72 

Multifamily residential real estate........................ 0.38 0.83 0.36 1.16 0.11 0.27 0.37 0.68 0.42 10.73 0.05 

Home equity loans.......................................... 0.13 0.19 0.13 0.30 0.09 0.17 0.16 0.27 0.08 0.01 0.03 

Other 1-4 Family residential.............................. 0.87 0.87 0.72 0.74 0.94 0.70 0.64 0.96 0.62 1.13 0.99 

Commercial and industrial loans........................... 2.21 1.66 1.95 2.90 2.09 1.67 3.62 2.42 1.83 2.29 2.50 

Loans to individuals............................................. 0.60 0.98 0.67 0.63 0.56 0.67 0.97 0.47 0.50 0.45 0.42 

Credit card loans............................................. 1.12 0.78 1.08 1.08 1.13 1.66 2.64 0.44 1.17 0.68 0.90 

Other loans to individuals................................. 0.43 1.00 0.61 0.61 0.31 0.51 0.40 0.48 0.45 0.23 0.39 

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

Percent of Loans Charged-off (net, annualized) 

0.92 0.97 0.77 1.03 0.93 0.77 0.92 0.92 0.68 1.60 0.96 

All real estate loans............................................. 0.06 0.04 0.06 0.05 0.05 0.03 0.06 0.16 0.06 0.03 0.04 

Construction, development, and land.................. 0.11 0.01 0.05 0.08 0.16 0.06 0.17 0.04 -0.01 -0.03 0.28 

Commercial real estate.................................... 0.03 0.03 0.09 0.03 -0.01 0.04 0.00 0.14 0.18 0.01 -0.06 

Multifamily residential real estate........................ -0.01 -0.02 -0.01 0.09 -0.05 -0.03 0.25 0.16 0.03 0.00 -0.04 

Home equity loans.......................................... 0.06 0.03 0.00 0.07 0.08 0.03 0.22 0.11 0.13 0.07 0.02 

Other 1-4 Family residential.............................. 0.06 0.05 0.07 0.05 0.06 0.04 0.03 0.17 0.04 0.06 0.05 

Commercial and industrial loans........................... 1.39 0.58 0.74 0.92 1.79 1.01 3.14 1.12 0.76 2.10 1.18 

Loans to individuals............................................. 1.92 1.00 1.03 0.90 2.32 1.48 2.49 2.12 1.60 0.97 2.50 

Credit card loans............................................. 3.91 3.86 3.25 1.97 4.01 4.76 6.89 3.99 9.37 1.42 3.88 

Other loans to individuals................................. 1.27 0.90 0.71 0.85 1.54 0.95 0.94 1.13 1.04 0.49 2.39 

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

Loans Outstanding (in billions) 

0.26 0.13 0.15 0.17 0.32 0.19 0.69 0.43 0.20 0.39 0.16 

All real estate loans............................................. $746.3 $16.8 $145.1 $108.7 $475.7 $222.7 $49.5 $101.5 $25.7 $32.2 $314.6 

Construction, development, and land.................. 37.7 1.1 10.2 8.5 17.8 8.0 5.8 5.8 1.9 7.2 9.0 

Commercial real estate.................................... 65.4 1.7 21.6 17.7 24.4 29.5 4.5 8.3 3.6 4.5 15.0 

Multifamily residential real estate........................ 59.7 0.5 8.7 12.8 37.7 16.7 1.2 5.5 1.2 1.1 34.0 

Home equity loans.......................................... 32.5 0.5 6.7 4.6 20.7 9.1 2.8 7.1 0.8 1.1 11.5 

Other 1-4 Family residential.............................. 550.7 12.9 97.7 65.1 375.0 159.4 35.2 74.8 18.2 18.2 244.9 

Commercial and industrial loans........................... 38.4 0.8 7.3 7.4 23.0 17.0 4.3 3.8 1.3 3.6 8.4 

Loans to individuals............................................. 68.9 1.2 10.3 9.0 48.4 15.8 12.5 16.0 2.1 9.8 12.8 

Credit card loans............................................. 16.7 0.0 1.3 0.4 15.0 2.3 3.2 5.4 0.1 4.8 0.8 

Other loans to individuals................................. 51.9 1.2 8.9 8.5 33.3 13.3 9.3 10.5 1.9 4.9 11.8 

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

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

860.4 18.9 163.3 126.4 551.9 258.1 66.7 123.6 29.2 46.0 336.7 

All other real estate owned.................................... $1,065.1 $39.8 $207.9 $284.4 $533.0 $245.8 $104.6 $207.2 $93.0 $83.1 $331.4 

Construction, development, and land.................. 146.3 4.8 25.2 30.9 85.4 10.6 40.1 10.1 48.0 15.7 21.8 

Commercial real estate.................................... 282.1 6.7 48.8 155.1 71.5 128.3 15.5 36.8 13.9 29.7 57.9 

Multifamily residential real estate........................ 31.5 2.4 8.0 19.7 1.3 3.4 3.0 9.2 1.3 13.6 1.0 

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

Troubled Real Estate Asset Rates*** 

(% of total RE assets) 

614.8 26.3 127.5 83.7 377.4 107.7 47.0 151.3 30.9 24.5 253.5 

All real estate loans............................................. 1.03 1.17 0.87 1.20 1.03 0.81 0.89 1.16 0.99 2.15 1.04 

Construction, development, and land.................. 2.09 1.92 1.40 1.77 2.65 1.41 1.64 1.71 3.29 1.92 3.09 

Commercial real estate.................................... 1.79 1.69 1.11 2.37 1.98 1.41 1.39 1.75 1.16 4.16 2.11 

Multifamily residential real estate........................ 0.43 1.35 0.45 1.31 0.12 0.29 0.62 0.85 0.52 11.82 0.05 

1-4 family residential....................................... 0.93 1.04 0.80 0.83 0.99 0.74 0.72 1.08 0.76 1.19 1.04 

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

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 14 First Quarter 2002 
ALL FDIC-INSURED INSTITUTIONS 

n Reporting Change Boosts Growth in Estimated Insured Deposits 

n BIF Reserve Ratio Falls Below 1.25 Percent, For the First Time Since 1995 

n SAIF Reserve Ratio Remains Unchanged 

n Six BIF Member Institutions Fail During Quarter 

Total assets and deposits of the nation’s 9,538 insured 

institutions shrank slightly in the first three months of 2002. 

During this period, deposits insured by the FDIC 

increased by 2.6 percent ($82.9 billion) to $3.3 trillion. This 

was the largest quarterly rise since the first quarter of 

2001, when total insured deposits increased by 2.8 percent. The combined balances of the Bank Insurance 

Fund (BIF) and the Savings Association Insurance Fund 

(SAIF) increased by 0.3 percent during the quarter, ending 

at $41.75 billion (unaudited). The joint BIF and SAIF 

reserve ratio (fund balances as a percent of insured 

deposits) for all insured institutions equaled 1.27 percent 

on March 31. 

In the first quarter of 2002 deposits insured by the BIF 

grew by 3.1 percent ($75 billion), reaching $2.48 trillion. 

Nearly two-thirds of the first quarter’s deposit growth was 

due to a reporting change for institutions filing Call 

reports1. Institutions that file the Call report are predominantly BIF-member institutions, so the impact of this 

change was concentrated in the growth of BIF insured 

deposits. 

The Bank Insurance Fund (BIF) grew by 0.9 percent 

($258 million) during the first three months of 2002, ending the quarter with a balance of $30.7 billion (unaudited). 

Because the BIF growth did not keep pace with the growth 

of BIF-insured deposits, the reserve ratio fell from 1.26 

percent to 1.24 percent on March 31. This is the first time 

that the BIF reserve ratio has fallen below the Statutory 

“Designated Reserve Ratio” (DRR) of 1.25 percent since 

the BIF was recapitalized in 1995. The FDIC is required 

to maintain a BIF balance of at least 1.25 percent of BIFinsured deposits (the DRR). If the BIF falls below the 

DRR, the FDIC must collect premiums sufficient to restore 

the shortfall within a year after the higher premiums are 

set, or it must collect premiums of at least 23 basis points. 

The FDIC Board of Directors has the option to increase 

insurance premiums by as much as 5 basis points at any 

one time. Larger increases require the Board to solicit 

public comment. Deposit insurance premiums are only 

changed on June 30 (July 1) and December 31 (January 

1) assessment dates and insured institutions must be notified 45 days in advance of an assessment increase. As a 

result, deposit insurance premiums would not be 

increased for a DRR shortfall prior to December 31, 2002 

1 Starting in March 2002 all institutions filing the Call Report are required 

to report estimated uninsured deposits. Prior to March 2002 reporting 

estimated uninsured deposits was voluntary for these institutions. If 

uninsured deposits were not reported then they were estimated using 

a simple formula ((Amount of domestic deposits >$100K) less (Number 

of deposit accounts >$100 times $100K)). An institution’s insured 

deposits are estimated by subtracting estimated uninsured deposits 

from total domestic deposits. 

(January 1 – June 30, 2003 assessment period). The 

FDIC has until the middle of November 2002 to notify institutions of an assessment increase for the first semiannual 

assessment period of 2003. If the DRR for BIF climbs 

above 1.25 percent during the second quarter of 2002 

(June 30, 2002 financials) then increased assessment 

rates for BIF would not be necessary. 

Deposits insured by the SAIF grew 1.0 percent in the first 

quarter of 2002, following a 3.0 percent rise in the fourth 

quarter. The reserve ratio of the Savings Association 

Insurance Fund (SAIF) was 1.36 at the end of first quarter 

2002, unchanged from three months earlier. The balance 

of the SAIF was $11.05 billion (unaudited) on March 31, 

up $114 million during the quarter. 

Six BIF insured institutions failed during the first quarter 

2002, the largest number since the third quarter of 1994, 

when eight BIF institutions and one SAIF-insured institution failed. The six institutions that failed in the first quarter of 2002 were all commercial banks, with combined 

assets of $2.1 billion. All of the insured deposits in these 

six institutions were insured by the BIF. Losses to the BIF 

were estimated at $644 million when these institutions 

failed. During the same period no SAIF member institution 

failed. 

Among insured institutions whose brokerage affiliates 

sweep cash management accounts into FDIC-insured 

accounts, insured brokered deposits increased by $1.3 

billion during the quarter. All of the increase was at BIF 

member institutions. During the same period, fully-insured 

brokered deposits declined by 2.6 percent for all BIF 

member institutions, and increased by 6.7 percent at SAIF 

member institutions. 

QUARTERLY PERCENTAGE CHANGE IN 

INSURANCE FUND BALANCES, 1999–2002 

Percent Change (not annualized) 

0 

1.0 

1.3 1.4 

0.7 

1.5 

1.0 

1.6 

0.5 

2.0 

-1.7 

0.9 1.1 1.0 0.8 

-0.1 

-1.1 

-0.3 

1.1 

0.1 

2.6 

1.4 1.5 

0.8 0.9 

-4.4 

0.9 

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

Bank Insurance Fund (BIF) 

Savings Association 

Insurance Fund (SAIF) 

1999 2000 2001 2002 

FDIC Quarterly Banking Profile 

First Quarter 2002 15 All FDIC-Insured Institutions 
 

 

 

 

 

 

 

 

 

 

 

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

(dollar figures in millions) 2002** 2001** 2001 2000 1999 1998 1997 

Number of institutions reporting.............................. 9,520 9,822 9,613 9,904 10,221 10,463 10,922 

Total assets......................................................... $ 7,822,900 7,571,793 7,869,042 7,461,959 6,883,685 6,530,951 6,041,128 

Total deposits...................................................... 5,172,313 4,948,478 5,189,438 4,914,827 4,538,085 4,386,298 4,125,862 

Number of problem institutions................................. 124 95 114 94 79 84 92 

Assets of problem institutions (in billions).................. $52 $24 $40 $24 $10 $11 $6 

Number of failed/assisted institutions........................ 6 1 4 7 8 3 1 

Assets of failed/assisted institutions (in billions)......... $2.14 $0.02 $2.25 $0.41 $1.56 $0.37 $0.03 

** As of March 31. 

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

(dollar figures in millions) 

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

Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

2002 2001 2001 01:1-02:1 

 9,520 9,613 9,822 -3.1 

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

CONDITION DATA 

1,994,118 1,967,573 1,933,562 3.1 

Total assets..................................................................... $7,822,900 $7,869,042 $7,571,793 3.3

 Loans secured by real estate............................................. 2,556,858 2,560,684 2,442,927 4.7 

1-4 Family residential................................................... 1,543,673 1,564,177 1,512,210 2.1 

Home equity loans...................................................... 198,946 184,315 154,238 29.0 

Multifamily residential property....................................... 125,563 123,126 119,086 5.4 

Commercial real estate................................................... 584,171 569,433 531,700 9.9 

Construction, development, and land................................. 232,175 231,463 210,164 10.5 

Other real estate loans................................................... 71,276 72,486 69,768 2.2 

Commercial & industrial loans 1,005,291 1,020,273 1,080,861 -7.0

 Loans to individuals......................................................... 718,146 701,054 663,107 8.3

 Credit cards & related plans.......................................... 264,526 250,299 232,922 13.6

 Other loans & leases...................................................... 477,278 488,296 495,069 -3.6

 Less: Unearned income & contra accounts........................ 4,002 3,276 2,970 34.8

 Total loans & leases......................................................... 4,753,571 4,767,031 4,678,994 1.6

 Less: Reserve for losses................................................... 82,717 79,796 72,205 14.6 

Net loans and leases......................................................... 4,670,855 4,687,235 4,606,789 1.4 

Securities........................................................................ 1,488,232 1,464,812 1,328,606 12.0 

Other real estate owned...................................................... 4,874 4,619 4,063 20.0 

Goodwill and other intangibles............................................. 158,008 143,765 120,126 31.5 

All other assets.................................................................. 1,500,926 1,568,612 1,512,210 -0.7 

Total liabilities and capital................................................... 7,822,900 7,869,042 7,571,793 3.3

 Deposits....................................................................... 5,172,313 5,189,438 4,948,478 4.5

 Other borrowed funds...................................................... 1,490,738 1,495,909 1,506,990 -1.1

 Subordinated debt............................................................ 96,731 99,227 93,692 3.2

 All other liabilities............................................................ 341,114 376,793 368,690 -7.5

 Equity capital.................................................................. 722,004 707,675 653,945 10.4 

Loans and leases 30-89 days past due................................. 57,800 62,783 55,629 3.9 

Noncurrent loans and leases................................................ 65,102 62,492 52,373 24.3 

Restructured loans and leases............................................. 3,503 3,195 2,535 38.2 

Direct and indirect investments in real estate........................... 688 687 902 -23.7 

Mortgage-backed securities................................................ 814,104 810,120 706,064 15.3 

Earning assets.................................................................. 6,825,000 6,791,287 6,604,921 3.3 

FHLB Advances............................................................... 442,526 452,502 438,223 1.0 

Unused loan commitments................................................... 5,383,143 5,149,068 4,824,483 11.6 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

Preliminary 

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

2001 2000 %Change 2002 2001 01:1-02:1 

$486,820 $512,228 -5.0 $108,428 $132,036 -17.9 

235,010 276,506 -15.0 39,268 71,606 -45.2

251,810 235,723 6.8 69,160 60,430 14.4 

45,955 32,043 43.4 12,455 8,637 44.2 

168,897 164,834 2.5 44,429 43,107 3.1 

251,062 241,583 3.9 63,736 62,136 2.6 

8,732 -1,484 N/M 1,345 2,001 -32.8 

44,190 43,704 1.1 13,302 11,638 14.3 

-649 -35 N/M -71 -368 N/M

87,583 81,707 7.2 25,369 22,759 11.5 

* Excludes insured branches of foreign banks (IBAs). N/M - Not meaningful 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 16 First Quarter 2002 
 

TABLE III-C. Selected Insurance Fund Indicators* 

(dollar figures in millions) Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

2002 2001 2001 01:1-02:1 

Bank Insurance Fund 

Reserve ratio (%)..................................................................... 1.24 1.26 1.33 -7.3 

Fund balance (unaudited)......................................................... $30,697 $30,439 $31,426 -2.4 

Estimated insured deposits...................................................... 2,483,357 2,408,350 2,371,197 4.7 

SAIF-member Oakars............................................................ 80,816 65,829 60,596 33.4 

BIF-members........................................................................ 2,402,542 2,342,520 2,310,600 4.0 

Assessment base.................................................................. 3,591,079 3,584,364 3,363,409 6.8 

SAIF-member Oakars............................................................ 82,237 67,120 61,510 33.7 

BIF-members........................................................................ 3,508,842 3,517,243 3,301,900 6.3 

Savings Association Insurance Fund 

Reserve ratio (%)..................................................................... 1.36 1.36 1.43 -5.1 

Fund balance (unaudited)......................................................... $11,049 $10,935 $10,973 0.7 

Estimated insured deposits...................................................... 810,202 802,358 768,580 5.4 

BIF-member Oakars............................................................... 340,285 346,901 313,163 8.7 

SAIF-member Sassers......................................................... 78,634 73,463 70,549 11.5 

Other SAIF members............................................................ 391,283 381,994 384,868 1.7 

Assessment base.................................................................. 911,951 897,783 847,061 7.7 

BIF-member Oakars............................................................... 342,067 349,058 313,765 9.0 

SAIF-member Sassers......................................................... 94,784 92,384 86,656 9.4 

Other SAIF members............................................................ 475,101 456,341 446,640 6.4 

Insurance Fund Reserve Ratios* Fund Balances and Insured Deposits* 

Percent of Insured Deposits ($Millions) 

BIF BIF-Insured SAIF SAIF-Insured 

12/97 12/98 12/99 12/00 3/01 6/01 9/01 12/01 3/02 

1.38 1.39 

1.37 

1.35 

1.33 1.33 1.32 

1.36 

1.37 

1.43 1.43 1.43 

1.40 

1.39 

1.36 

1.26 

1.24 

1.36 

BIF 

SAIF Balance Deposits Balance Deposits 

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 2,151,454 10,281 717,591 

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

Target 3/01 31,426 2,371,197 10,973 768,580 

Ratio 

1.25 6/01 31,681 2,382,801 10,792 772,091 

9/01 31,834 2,403,880 10,815 778,880 

12/01 30,439 2,408,350 10,935 802,358 

3/02 30,697 2,483,357 11,049 810,202 

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

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

end fund balances are audited by GAO. 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........................................................................ 

** Through March 31. 

2002** 2001** 2001 2000 1999 1998 1997 

6 

$2,137 

1 

$17 

3 

$54 

6 

$378 

7 

$1,490 

3 

$371 

1 

$27 

0 

$0 

0 

$0 

1 

$2,200 

1 

$30 

1 

$71 

0 

$0 

0 

$0 

FDIC Quarterly Banking Profile 

First Quarter 2002 17 All FDIC-Insured Institutions 
 

 

 

 

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

(dollar figures in millions) 2002** 2001** 2001 2000 1999 1998 1997 

BIF Members 

Number of institutions reporting................................................ 8,247 8,491 8,326 8,571 8,834 9,031 9,404 

BIF-member Oakars............................................................ 766 739 763 743 744 745 778 

Other BIF-members............................................................... 7,481 7,752 7,563 7,828 8,090 8,286 8,626 

Total assets........................................................................... $ 6,763,862 6,591,070 6,857,207 6,509,798 5,980,153 5,702,774 5,285,403 

Total deposits........................................................................ 4,514,607 4,349,925 4,567,597 4,337,727 3,987,382 3,843,816 3,611,453 

Net income........................................................................... 22,581 20,579 76,944 73,637 73,968 64,335 61,459 

Return on assets (%)............................................................... 1.33 1.26 1.15 1.18 1.30 1.18 1.22 

Return on equity (%)............................................................... 14.44 14.58 12.98 13.90 15.11 13.81 14.44 

Noncurrent assets plus OREO to assets (%)................................. 0.94 0.77 0.90 0.72 0.62 0.64 0.67 

Number of problem institutions................................................... 98 75 90 74 66 68 73 

Assets of problem institutions................................................... $32,695 $12,754 $31,881 $10,787 $4,450 $5,326 $4,598 

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

Assets of failed/assisted institutions............................................. $2,137 $17 $54 $378 $1,490 $371 $27 

SAIF Members 

Number of institutions reporting................................................ 1,273 1,331 1,287 1,333 1,387 1,432 1,518 

SAIF-member Oakars............................................................ 133 125 130 123 123 116 112 

Other SAIF-members............................................................ 1,140 1,206 1,157 1,210 1,264 1,316 1,406 

Total assets........................................................................... $ 1,059,037 980,723 1,011,834 952,161 903,532 828,177 755,724 

Total deposits........................................................................ 657,706 598,552 621,841 577,100 550,703 542,481 514,409 

Net income........................................................................... 2,788 2,179 10,639 8,070 8,450 7,598 6,486 

Return on assets (%)............................................................... 1.06 0.91 1.11 0.89 0.99 0.98 0.94 

Return on equity (%)............................................................... 12.53 11.13 13.48 11.12 11.97 11.34 11.13 

Noncurrent assets plus OREO to assets (%)................................. 0.76 0.67 0.75 0.65 0.64 0.80 0.98 

Number of problem institutions................................................... 26 20 24 20 13 16 19 

Assets of problem institutions................................................... $19,027 $10,835 $7,923 $13,053 $5,524 $5,992 $1,662 

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

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

* Excludes insured branches of foreign banks (IBAs). 

** Through March 31, ratios annualized where appropriate. 

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

(dollar figures in millions) 

March 31, 2002 

Commercial Banks and Savings Institutions 

Number of Total Domestic 

Institutions Assets Deposits* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks............................................. 8,005 6,504,593 3,748,683 2,262,479 348,994 2,611,473 

BIF-member..................................................................... 7,896 6,396,950 3,674,915 2,244,733 307,385 2,552,118 

SAIF-member.................................................................. 109 107,643 73,768 17,746 41,609 59,355 

FDIC-Supervised............................................................... 4,932 1,223,860 918,438 620,680 75,937 696,617 

OCC-Supervised............................................................... 2,118 3,574,174 1,982,322 1,189,911 197,275 1,402,042 

Federal Reserve-Supervised................................................ 955 1,706,559 847,922 437,032 75,782 512,814 

FDIC-Insured Savings Institutions............................................. 1,515 1,318,307 820,109 234,616 461,208 695,824 

OTS-Supervised Savings Institutions....................................... 1,007 1,006,211 599,460 106,718 399,401 506,119 

BIF-member..................................................................... 38 115,706 59,263 46,031 8,118 54,148 

SAIF-member.................................................................. 969 890,505 540,197 60,687 391,283 451,971 

FDIC-Supervised State Savings Banks.................................... 508 312,096 220,649 127,898 61,807 189,706 

BIF-member..................................................................... 313 251,206 177,020 125,516 24,783 150,299 

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

Total Commercial Banks and 

 195 60,890 43,629 2,382 37,025 39,407 

Savings Institutions................................................ 9,520 7,822,900 4,568,792 2,482,240 810,202 3,307,298 

BIF-member........................................................................ 8,247 6,763,862 3,911,198 2,401,424 340,285 2,741,709 

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

Other FDIC-Insured Institutions 

 1,273 1,059,037 657,594 80,816 469,917 550,733 

U.S. Branches of Foreign Banks............................................. 18 9,442 4,528 1,118 0 1,118 

Total FDIC-Insured Institutions....................................... 9,538 7,832,341 4,573,320 2,483,357 810,202 3,293,560 

* Excludes $604 billion in foreign office deposits, which are uninsured. 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 18 First Quarter 2002 
TABLE VII-C. Assessment Base Distribution and Rate Schedules 

BIF Assessment Base Distribution 

Assessable Deposits in Millions as of March 31, 2002 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2002 

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

 7,565 

 $3,464,955 

 132 

 $23,873 

 4 

 $592 

91.5 

96.5 

1.6 

0.7 

0.0 

0.0 

437 5.3 

$71,685 2.0 

14 0.2 

$1,306 0.0 

0 0.0 

$0 0.0 

96 

$25,910 

10 

$1,270 

7 

$1,487 

1.2 

0.7 

0.1 

0.0 

0.1 

0.0 

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

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

by on-site examinations. 

SAIF Assessment Base Distribution 

Assessable Deposits in Millions as of March 31, 2002 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2002 

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

 1,153 

 $869,880 

 8 

 $1,703 

 0 

 $0 

90.6 

95.4 

0.6 

0.2 

0.0 

0.0 

80 6.3 

$33,721 3.7 

6 0.5 

$493 0.1 

0 0.0 

$0 0.0 

17 

$5,674 

7 

$406 

2 

$74 

1.3 

0.6 

0.5 

0.0 

0.2 

0.0 

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

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

by on-site examinations. 

Assessment Rate Schedules 

Second Semiannual 2002 Assessment Period 

Cents Per $100 of Assessable Deposits 

Capital Group 

Supervisory Risk Subgroup 

A B C 

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

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

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

0 

3 

10 

3 

10 

24 

17 

24 

27 

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

Currently, the rate schedules are identical. 

FDIC Quarterly Banking Profile 

First Quarter 2002 19 All FDIC-Insured Institutions 
NUMBER OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1993–2002 

Number of Institutions 

12/93 12/94 12/95 12/96 12/97 12/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 12/00 3/01 6/01 9/01 

572 

318 

193 

117 

92 84 80 76 80 79 87 89 90 94 95 102 94 114 124 

Savings Institutions 

Commercial Banks 

12/01 3/02 

Savings Institutions 146 71 49 35 21 15 16 14 11 13 15 16 15 18 17 22 20 19 22 

Commercial Banks 426 247 144 82 71 69 64 62 69 66 72 73 75 76 78 80 74 95 102 

ASSETS OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1993–2002 

$ Billions 

Savings Institutions $334 Commercial Banks 

$72 

$52 $40 

$19 $24 $23 $24 $18 $31 

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

12/93 12/94 12/95 12/96 12/97 12/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 12/00 3/01 6/01 9/01 12/01 3/02 

Savings Institutions 92 39 14 7 2 6 5 4 4 6 5 8 7 7 6 7 4 4 15 

Commercial Banks 242 33 17 5 5 5 5 5 4 4 5 11 12 17 17 17 14 36 37 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 20 First Quarter 2002 
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. Savings institutions in conservatorships are 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. 

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 

Goodwill and intangible assets — FAS 141 terminates the 

use of pooling-of-interest accounting after 2001 and requires 

purchase accounting. Under FAS 142 amortization of goodwill is eliminated. Only intangible assets other than goodwill 

are amortized each quarter. In addition companies are 

required to test for impairment of both goodwill and other 

intangibles once each fiscal year. The year 2002, the first fiscal year affected by this accounting change, has been designated a transitional year and the amount of initial 

impairments are to be recorded as extraordinary losses on a 

“net of tax” basis (and not as noninterest expense). 

Subsequent annual review of intangibles and goodwill 

impairment may require additional noninterest expense 

recognition. 

FASB Statement No. 133 Accounting for Derivative 

Instruments and Hedging Activities — establishes new 

accounting and reporting standards. Derivatives were previously off-balance sheet items, but beginning in 2001 all 

banks must recognize derivatives as either assets or liabilities on the balance sheet, measured at fair value. A derivative may be specifically designated as a “fair value hedge,” a 

“cash flow hedge,” or a hedge of a foreign currency exposure. The accounting for changes in the value of a derivative 

(gains and losses) depends on the intended use of the derivative, its resulting designation, and the effectiveness of the 

hedge. Derivatives held for purposes other than trading are 

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

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

or gain on the hedged item attributable to the risk being 

hedged. Any ineffectiveness of the hedge could result in a 

net gain or loss on the income statement. Accumulated net 

gains (losses) on cash flow hedges are recorded on the balance sheet as “accumulated other comprehensive income” 

and the periodic change in the accumulated net gains (losses) for cash flow hedges is reflected directly in equity as the 

value of the derivative changes. 

Initial transition adjustments upon adoption of FAS 133 are 

reported as adjustments to net income in the income statement as extraordinary items. Upon implementing FAS 133, 

FDIC Quarterly Banking Profile 

First Quarter 2002 21 Notes to Users 
a bank may transfer any debt security categorized as heldto-maturity into the available-for-sale category or the trading 

category. Unrealized gains (losses) on transferred held-tomaturity debt securities on the date of initial application must 

be reflected as an adjustment to net income if transferred to 

the trading category or an adjustment to equity if transferred 

to the available-for-sale category. 

Subchapter S Corporations — The Small Business Job 

Protection Act of 1996 changed the Internal Revenue Code 

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

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

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

federal income taxes at the corporate level. Its taxable 

income flows through to its shareholders in proportion to their 

stock ownership, and the shareholders generally pay federal 

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

have the effect of reducing institutions’ reported taxes and 

increasing their after-tax earnings. 

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

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

DEFINITIONS (in alphabetical order) 

All other assets — total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

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

agreements to resell, fair market value of derivatives, and 

other assets. 

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

sheet credit losses, fair market value of derivatives, and 

other liabilities. 

Assessment base distribution — assessable deposits 

consist of BIF and SAIF deposits in banks’ domestic offices 

with certain adjustments. Each institution’s assessment 

depends on its assigned 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. 

Derivatives (notional amount) — represents the sum of the 

following: interest-rate contracts (defined as the “notional” 

value of interest-rate swap, futures, forward and option contracts), foreign-exchange-rate contracts, commodity contracts and equity contracts (defined similarly to interest-rate 

contracts). 

Futures and forward contracts — a contract in which the 

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

specified future date, a specific quantity of an underlying variable or index at a specified price or yield. These contracts 

exist for a variety of variables or indices, (traditional agricultural or physical commodities, as well as currencies and interest rates). Futures contracts are standardized and are traded 

on organized exchanges which set limits on counterparty 

credit exposure. Forward contracts do not have standardized 

terms and are traded over the counter. 

Option contracts — a contract in which the buyer acquires 

the right to buy from or sell to another party some specified 

amount of an underlying variable or index at a stated price 

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

return for compensation (such as a fee or premium). The seller is obligated to purchase or sell the variable or index at the 

discretion of the buyer of the contract. 

Swaps — an obligation between two parties to exchange a 

series of cash flows at periodic intervals (settlement dates), 

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

fixed, or determined for each settlement date by multiplying 

the quantity (notional principal) of the underlying variable or 

index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each 

payment but is not exchanged. 

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 

FDIC Quarterly Banking Profile 

Notes to Users 22 First Quarter 2002 
to provide funds to cover losses. An institution is defined as 

“assisted” when the institution remains open and receives 

some insurance funds in order to continue operating. 

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

reported by Call Report filers and by TFR filers. 

Goodwill and other intangibles — intangible assets 

include servicing rights, purchased credit card relationships 

and other identifiable intangible assets. 

Loans secured by real estate — includes home equity 

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

and all other loans secured by real estate. 

Loans to individuals — includes outstanding credit card 

balances and other secured and unsecured consumer loans. 

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

with remaining maturities or repricing intervals of over five years. 

Mortgage-backed securities — certificates of participation 

in pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored 

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

Net charge-offs — total loans and leases charged off 

(removed from balance sheet because of uncollectibility), 

less amounts recovered on loans and leases previously 

charged off. 

Net interest margin — the difference between interest and 

dividends earned on interest-bearing assets and interest 

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

made for interest income that is tax exempt. 

Net operating income — income excluding discretionary 

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

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

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

in nonaccrual status. 

Noncurrent loans & leases — the sum of loans and leases 

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

Number of institutions reporting — the number of institutions that actually filed a financial report. 

Other borrowed funds — federal funds purchased, securities sold with agreements to repurchase, demand notes 

issued to the U.S. Treasury, FHLB advances, other borrowed 

money, mortgage indebtedness, obligations under capitalized leases and trading liabilities, less revaluation losses on 

assets held in trading accounts. 

Other real estate owned — primarily foreclosed property. 

Direct and indirect investments in real estate ventures are 

excluded. The amount is reflected net of valuation 

allowances. For institutions that file a Thrift Financial Report 

(TFR), the valuation allowance subtracted also includes 

allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported 

gross of valuation allowances. 

Percent of institutions with earnings gains — the percent 

of institutions that increased their net income (or decreased 

their losses) compared to the same period a year earlier. 

“Problem” institutions — federal regulators assign a composite rating to each financial institution, based upon an evaluation of financial and operational criteria. The rating is 

based on a scale of 1 to 5 in ascending order of supervisory 

concern. “Problem” institutions are those institutions with 

financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending upon the 

degree of risk and supervisory concern, they are rated either 

a “4” or “5”. For all BIF-member institutions, and for all 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 on a consolidated basis. Prior to March 31, 2001 

reserves for losses included the allocated transfer risk 

reserve, which is no longer included as part of the loss 

reserve, but netted from loans and leases. 

Restructured loans and leases — loan and lease financing 

receivables with terms restructured from the original contract. Excludes restructured loans and leases that are not in 

compliance with the modified terms. 

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 

for Call Report filers only. 

Unused loan commitments — includes credit card lines, 

home equity lines, commitments to make loans for construction, loans secured by commercial real estate, and unused 

commitments to originate or purchase loans. 

Volatile liabilities — the sum of large-denomination time 

deposits, foreign-office deposits, federal funds purchased, 

securities sold under agreements to repurchase, and other 

borrowings. 

Yield on earning assets — total interest, dividend and fee 

income earned on loans and investments as a percentage of 

average earning assets. 

FDIC Quarterly Banking Profile 

First Quarter 2002 23 Notes to Users