Quarterly Banking Profile
 

FIRST QUARTER 2004 

�	 Earnings Climb To Fifth Consecutive Quarterly Record 

�	 Lower Loss Provisions, Strong Gains On Securities Sales Lift Net Income 

�	 Mortgage Demand Contributes To Record Growth In Interest-Earning 

Assets 

�	 Falling Interest Rates Reduce Net Interest Margins 

Chart 1	 Chart 2 

22.4 

17.3 

21.8 

20.1 

22.7 22.4 20.9 22.0 

25.3 27.2 27.3 25.3 

29.5 30.2 30.5 31.0 31.9 

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

0 

10 

20 

30 

40 

$ Billions 

2000 2001 2002 2003 2004 

Securities and Other Gains/Losses, Net 

Net Operating Income 

Industry Earnings Continue to Set New Records 

45 

50 

55 

60 

65 

70 

75 

Percent of Institutions with Quarterly Earnings Gains 

1 32 4 1 2 3 4 

2002 2003 2004

1 

64.9 

72.8 

50.6 

55.2 

Fewer Institutions Are Able to Sustain Earnings Growth 

ROA Remains at Historically High Level 

Strength in mortgage lending and lower expenses for 

loan losses helped bank and thrift earnings reach a new 

record in the first quarter of 2004. Industry earnings of 

$31.9 billion were $858 million (2.8 percent) higher 

than the previous quarterly record, set in the fourth 

quarter of 2003. Lower interest rates helped sustain 

mortgage refinancing activity and made it possible for 

institutions to realize higher gains on sales of fixed-rate 

securities and other assets. The industry’s return on 

assets (ROA) was 1.38 percent, slightly below the alltime quarterly record of 1.39 percent recorded in the 

first quarter of 2003. More than half of all institutions 

(55 percent) reported higher earnings than in the first 

quarter of 2003, while half (50.3 percent) reported 

higher ROAs. The percentage of unprofitable institutions fell to 5.5 percent, compared to 5.9 percent a year 

earlier. This is the lowest percentage of unprofitable 

institutions the industry has had in almost six years, 

since the second quarter of 1998. 

Lower Servicing Income Causes Decline in Noninterest 

Revenue 

Insured banks and thrifts realized gains of $2.6 billion 

on sales of securities and other assets during the quarter. 

This was up from $736 million in the fourth quarter, 

but below the $3.7 billion in gains recorded in the first 

quarter of 2003. The industry’s net operating income, 

which excludes these gains as well as other extraordinary items, was down slightly, by $155 million, from the 

level of the fourth quarter, but still represented the second-highest quarterly total ever reported. Provisions 

for loan losses totaled $7.6 billion, the lowest quarterly 

amount since the third quarter of 2000, and $1.3 billion 

(14.6 percent) less than banks and thrifts set aside in 

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

the fourth quarter. Net interest income was only 

$1.1 billion (1.5 percent) higher, and noninterest 

income fell by $1.7 billion. The weak growth in net 

interest income was attributable to narrower net 

interest margins. The decline in noninterest income 

was caused primarily by a $2.2-billion drop in servicing fees. It is likely that much of this decline 

reflected the negative impact of mortgage loan refinancings on the values of mortgage servicing assets. 

An increase of $1.5 billion (63.9 percent) in trading 

revenue partially offset the lower servicing income. 

Net income from banks’ international operations 

totaled $2.7 billion, an increase of $1.7 billion 

(154.7 percent) from the fourth quarter. 

Falling Interest Rates Cause Decline in Net Interest 

Margins 

Net interest margins fell for the seventh time in the 

last eight quarters. The average margin of 3.68 percent was only one basis point above the level 

recorded in the third quarter of 2003, which represented a 12-year low. The low level of short-term 

interest rates, and depository institutions’ reliance 

on short-term funding sources, make it difficult for 

the industry to reduce its average funding costs 

when falling interest rates cause asset yields to 

decline. Margin compression was greatest among 

international banks and mortgage lenders; in contrast, at credit-card lenders, margins registered a second consecutive quarter of strong improvement as 

average asset yields rose. Margins declined during 

the quarter at 58.6 percent of insured institutions. 

Chart 3 

Margins Were Lower at Institutions of All Sizes 

Net Interest Margin (%) 

3.0 

3.5 

4.0 

4.5 

5.0 

5.5 

4.40 

3.81 

Assets < $100 Million 

Assets > $100 Million 

4.08 

3.67 

1 32 4 1 32 4 1 32 4 1 32 4 1 

Provisions Decline at Large Banks 

The improving trend in loan-loss provisions, which 

have fallen in four of the last five quarters, mirrors 

improvements in loan charge-offs and noncurrent 

loans. Net loan charge-offs have also declined in 

four of the past five quarters, while noncurrent loans 

have declined for six consecutive quarters. These 

improvements continue to be concentrated among 

large banks. While 38 percent of all institutions 

reported lower loss provisions than in the first quarter of 2003, four banks accounted for more than 

two-thirds of the total decline. 

Credit Losses on C&I Loans Continue to Shrink 

Much of the improvement in asset quality indicators 

continues to come from improvements in the commercial and industrial (C&I) loan portfolios of large 

banks. Net charge-offs of C&I loans were $919 million (36.6 percent) lower than in the fourth quarter; 

this decline accounted for 47.7 percent of the $1.9­

billion (18.0 percent) reduction in total net chargeoffs. Net charge-offs of residential mortgage loans 

declined by $642 million (64.5 percent), while net 

charge-offs of non-credit card consumer loans fell by 

$202 million (10.8 percent). Net charge-offs of 

credit card loans increased by $221 million (5.1 percent) during the quarter. Credit card loans accounted for more than half—52.4 percent—of all loan 

charge-offs in the quarter. 

Chart 4 

Lower Loan-Loss Provisions Make aSignificant 

Contribution to the Increase in Earnings 

Change from 1st Quarter 2003, $ Billions 

Positive Contributions
 

to Earnings
 3.9 3.8 

-6.5

Increase in 

Noninterest 

Expense

2.7 

0 

-1.1 

Negative
 

Contributions
 

to
 

Earnings
 

Increase in Decline in Increase in Decline in 

Net Interest Loan Loss Noninterest Gains on 

Income Provision Income Security Sales 

2000 2001 2002 2003 2004 

FIRST QUARTER 2004 2 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

Improvement in Noncurrent Loans Is Best in Almost 

10 Years 

The amount of C&I loans that were noncurrent— 

either 90 days or more past due or in nonaccrual status—also declined during the first quarter, falling by 

$1.8 billion (9.5 percent). This represented 39.3 

percent of the $4.6-billion decline in total noncurrent loans during the quarter. The decline in noncurrent loans was the largest in almost 10 years, 

since the second quarter of 1994. Other sizable 

declines in noncurrent loans occurred in the industry’s credit card portfolios (down $994 million, or 

13.4 percent), and in residential mortgage loans 

(down $951 million, or 6.2 percent). 

Coverage Ratio Improves Despite Fall in Loss 

Reserves 

The industry’s total net charge-offs of $8.8 billion 

were $1.2 billion greater than total loss provisions. 

This is the fifth consecutive quarter that loss provisions have lagged behind charge-offs. As a result, 

loss reserves fell by $1.3 billion (1.5 percent), and 

the reserve ratio (reserves as a percentage of total 

loans) fell from 1.57 percent to 1.52 percent. This 

is the eighth consecutive quarter that the reserve 

ratio has declined, and it is now at its lowest level 

since September, 2000. Even as reserves fell, the 

sharp decrease in noncurrent loans during the quarter meant that the industry’s coverage ratio 

improved to $1.50 in reserves for every $1 of noncurrent loans. This is the sixth consecutive quarterChart 5 

0 

1 

2 

3 

4 

5 

C&I Noncurrent Loan Rate (%) 

1994 1996 1998 2000 2002 2004 

Assets > $1 Billion 

Assets < $1 Billion 2.51 

1.73 

1.35 

1.97 

3.19 

The Improvement in Troubled C&I Loans Is 

Concentrated Among Large Banks 

ly improvement in the coverage ratio, which is now 

at its highest level since September, 2000. 

Internal Capital Growth Exhibits Strength 

Retained earnings reached a record level in the first 

quarter, increasing to $17.0 billion from $2.8 billion 

in the fourth quarter and $12.0 billion in the first 

quarter of 2003. This contributed to a $55.2-billion 

(6.6-percent) increase in equity capital that eclipsed 

the previous quarterly record increase of $32.5 billion, set in the third quarter of 2001. However, the 

largest part of this increase was caused by a structural change in one holding company that resulted in 

more than $24 billion in equity capital being double-counted.1 

Asset Growth Remains Strong 

Total assets increased by $302 billion (3.3 percent) 

during the quarter, the second-largest increase ever, 

after the $317-billion increase recorded in the second quarter of 2003. Interest-bearing assets grew by 

a record $354 billion (4.5 percent). Mortgage activity was chiefly responsible for the increases. Residential mortgage loans, mortgage-backed securities 

(MBS) and home equity loans increased by $214 

billion (7.3 percent), which represented 60.4 percent of the increase in interest-bearing assets and 

71.0 percent of the increase in total assets during 

the quarter. Mortgage-backed securities alone 

increased by $121 billion, as the industry’s MBS 

1 On February 1, 2004, Washington Mutual Bank FSB of Salt Lake City, Utah 

became a subsidiary of Washington Mutual Bank FA of Stockton, California. This reorganization was followed by the contribution of $23 billion of securities by the Stockton 

parent to the Salt Lake City subsidiary, which contributed to an increase of more than 

$24 billion in the equity capital of the subsidiary. Because the parent institution consolidates the financial data of its subsidiary in its own quarterly reports while the subsidiary still files a separate report, the amounts in the subsidiary institution are 

double-counted. 

ALL FDIC-INSURED INSTITUTIONS 3 FIRST QUARTER 2004 
FDIC Quarterly Banking Profile 

portfolio rose above $1 trillion for the first time. 

Strong growth was also registered in commercial real 

estate loans, which were up by $17.7 billion (2.6 

percent), and real estate construction and development loans, which increased by $13.3 billion (4.9 

percent). Commercial and industrial (C&I) loans 

declined for the thirteenth quarter in a row, dropping by $12.0 billion (1.3 percent). As has been 

the case during most of the period that C&I loans 

have been declining, the shrinkage is concentrated 

among a few large banks, and most institutions are 

growing their C&I loans. Two banks accounted for 

more than 90 percent of the decline in the industry’s C&I loans in the first quarter. More than half 

of all institutions—55 percent—increased their C&I 

loans in the quarter. 

Growth in Deposits Falls Short of Growth in Assets 

Deposit growth was relatively strong in the first 

quarter. Deposits in domestic offices increased by 

$134.1 billion (2.6 percent), while foreign office 

deposits grew by $38.7 billion (5.2 percent). Most 

of the growth in domestic deposits occurred in interest-bearing accounts, which increased by $110.9 bilChart 6 

Mortgage Assets 

Other Interest-earning Assets 

0 

Quarterly Change, $ Billions 

2000 2001 2002 2003 2004 

1 432 1 432 1 432 1 432 1 

35 

75 

43 

107 

27 

73 

22 

111 

44 

57 

41 

76 79 

-57 

86 

63 

143 

37 

95 

40 

121 

50 

141 

87 

22 

134 214 

140 

35 

8 -17 

54 

-27 

39 

Residential Mortgage Demand Has Been Fueling 

Asset Growth 

lion (2.6 percent). Noninterest-bearing deposits in 

domestic offices rose by $23.8 billion (2.4 percent). 

Nondeposit liabilities increased by $73.8 billion (3.2 

percent) in the first quarter. 

Three Institutions Fail During First Quarter 

The number of insured commercial banks and savings institutions filing quarterly financial reports 

declined from 9,181 to 9,116 during the quarter. 

Mergers absorbed 91 institutions, while three institutions failed. There were 27 new institutions that 

began financial reporting in the first quarter. The 

number of insured institutions operating as Subchapter S corporations increased to 2,137 from 

2,020 at the beginning of the year. Almost one out 

of every four banks and thrifts with assets of $1 billion or less—24.6 percent—has elected Subchapter 

S status. The number of institutions on the FDIC’s 

“Problem List” fell from 116 to 114 during the quarter, and assets of “problem” institutions remained at 

$29.9 billion. Seven savings institutions, with combined assets of $2.1 billion, converted from mutual 

to stock ownership during the quarter. 

Chart 7 

More Institutions Are Converting to 

Subchapter SCorporations 

Number of Subchapter S Corporations 

2,013 2,020 

2,137 

604 

12/97 

1,068 

12/98 

1,323 

12/99 

1,481 

12/00 

1,682 

12/01 

1,855 

03/02 

1,859 

06/02 

1,859 

09/02 

1,854 

12/02 

2,012 

03/03 06/03 

2,017 

09/03 12/03 03/04 0 

Year-End Quarterly 

FIRST QUARTER 2004 4 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

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

2004** 2003** 2003 2002 2001 2000 1999 

Return on assets (%) ............................................................... 1.38 1.39 1.38 1.30 1.14 1.14 1.26 

Return on equity (%) ................................................................ 14.86 15.07 15.05 14.12 12.97 13.53 14.71 

Core capital (leverage) ratio (%) .............................................. 8.17 7.88 7.88 7.86 7.78 7.71 7.80 

Noncurrent assets plus 

other real estate owned to assets (%) ................................... 0.67 0.86 0.75 0.90 0.87 0.71 0.63 

Net charge-offs to loans (%) .................................................... 0.64 0.81 0.78 0.97 0.83 0.59 0.53 

Asset growth rate (%) ............................................................... 8.96 10.00 7.58 7.20 5.44 8.41 5.40 

Net interest margin (%) ............................................................ 3.68 3.80 3.74 3.96 3.78 3.77 3.89 

Net operating income growth (%) ............................................ 10.59 10.19 16.02 18.33 -0.84 1.71 19.75 

Number of institutions reporting ............................................... 9,116 9,314 9,181 9,354 9,614 9,904 10,222

 Commercial banks ................................................................ 7,712 7,865 7,770 7,888 8,079 8,315 8,580

 Savings institutions ............................................................... 1,404 1,449 1,411 1,466 1,535 1,589 1,642 

Percentage of unprofitable institutions (%) .............................. 5.53 5.85 5.84 6.67 8.23 7.53 7.64 

Number of problem institutions .......................................... 114 129 116 136 114 94 79 

Assets of problem institutions (in billions) ................................ $30 $35 $30 $39 $40 $24 $10 

Number of failed/assisted institutions ...................................... 3 1 3 11 4 7 8 

* Excludes insured branches of foreign banks (IBAs)
 

** 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, All FDIC-Insured Institutions 

(dollar figures in millions) 

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

1st Quarter 

2004 

4th Quarter 

2003 

1st Quarter 

2003 

%Change 

03:1-04:1 

9,116 9,181 9,314 -2.1 

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

CONDITION DATA 

2,131,060 2,045,975 2,029,745 5.0 

Total assets .......................................................................................................... $9,377,080 $9,075,324 $8,605,717 9.0 

Loans secured by real estate ............................................................................ 3,274,331 3,143,079 2,925,734 11.9 

1-4 Family residential mortgages ................................................................... 1,673,392 1,610,623 1,545,817 8.3 

Commercial real estate ................................................................................... 699,499 681,799 641,654 9.0 

Construction and development ....................................................................... 285,437 272,163 250,531 13.9 

Home equity lines ........................................................................................... 376,580 346,077 276,151 36.4 

Commercial & industrial loans ........................................................................... 910,191 922,207 947,948 -4.0 

Loans to individuals ........................................................................................... 831,677 848,315 752,503 10.5 

Credit cards .................................................................................................... 313,978 339,441 265,950 18.1 

Farm loans ......................................................................................................... 44,135 46,782 44,672 -1.2 

Other loans & leases ......................................................................................... 491,111 476,916 458,729 7.1 

Less: Unearned income ..................................................................................... 2,918 3,004 3,624 -19.5 

Total loans & leases .......................................................................................... 5,548,527 5,434,297 5,125,961 8.2 

Less: Reserve for losses ................................................................................... 84,268 85,545 85,855 -1.8 

Net loans and leases ......................................................................................... 5,464,259 5,348,751 5,040,107 8.4 

Securities ........................................................................................................... 1,907,788 1,770,808 1,694,986 12.6 

Other real estate owned .................................................................................... 5,263 5,336 5,437 -3.2 

Goodwill and other intangibles .......................................................................... 188,912 189,450 156,814 20.5 

All other assets .................................................................................................. 1,810,857 1,760,980 1,708,373 6.0 

Total liabilities and capital ..................................................................................... 9,377,080 9,075,324 8,605,717 9.0 

Deposits ............................................................................................................. 6,127,066 5,954,309 5,678,639 7.9 

Domestic office deposits ................................................................................. 5,347,244 5,213,138 5,025,817 6.4 

Foreign office deposits ................................................................................... 779,822 741,171 652,823 19.5 

Other borrowed funds ........................................................................................ 1,812,581 1,734,570 1,590,248 14.0 

Subordinated debt ............................................................................................. 107,196 106,683 100,507 6.7 

All other liabilities ............................................................................................... 444,278 448,998 444,824 -0.1 

Equity capital ..................................................................................................... 885,959 830,763 791,498 11.9 

Loans and leases 30-89 days past due ................................................................ 47,368 54,908 55,482 -14.6 

Noncurrent loans and leases ................................................................................ 56,326 60,923 67,194 -16.2 

Restructured loans and leases ............................................................................. 2,538 3,403 2,933 -13.5 

Direct and indirect investments in real estate ....................................................... 1,921 713 690 178.5 

Mortgage-backed securities .................................................................................. 1,103,083 982,123 980,522 12.5 

Earning assets ...................................................................................................... 8,208,852 7,854,255 7,458,071 10.1 

FHLB Advances .................................................................................................... 521,523 479,720 449,277 16.1 

Unused loan commitments ................................................................................... 6,112,066 5,848,358 5,775,110 5.8 

Trust assets .......................................................................................................... 13,902,049 13,013,613 10,742,609 29.4 

Assets securitized and sold*** .............................................................................. 863,572 870,786 849,791 1.6 

Notional amount of derivatives*** ......................................................................... 77,244,111 71,370,011 62,036,541 24.5 

INCOME DATA 

1st Quarter 

2003 

%Change 

03:1-04:1 

Full Year 

2003 

Full Year 

2002 %Change 

1st Quarter 

2004 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

$404,576 $429,515 -5.8 $103,052 $102,908 0.1 

122,640 152,897 -19.8 29,284 32,992 -11.2 

281,936 276,618 1.9 73,768 69,916 5.5 

37,289 51,496 -27.6 7,563 10,298 -26.6 

202,630 183,486 10.4 51,990 48,182 7.9 

279,645 263,717 6.0 73,765 67,255 9.7 

11,390 12,040 -5.4 2,599 3,709 -29.9 

58,853 51,923 13.4 15,352 14,719 4.3 

426 -49 N/M 185 -20 N/M 

120,596 104,959 14.9 31,863 29,515 8.0 

7,329 5,964 22.9 2,717 2,095 29.6 

40,762 47,007 -13.3 8,769 10,359 -15.4 

90,720 75,472 20.2 14,821 17,529 -15.5 

29,876 29,487 1.3 17,042 11,986 42.2 

112,416 96,895 16.0 29,887 27,025 10.6 

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

ALL FDIC-INSURED INSTITUTIONS 5 FIRST QUARTER 2004 
FDIC Quarterly Banking Profile 

TABLE III-A. First Quarter 2004, All FDIC-Insured Institutions 

FIRST QUARTER 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

9,116 35 6 1,730 4,276 1,028 140 520 1,294 87 

Commercial banks .............................................. 7,712 31 6 1,725 3,889 258 105 452 1,177 69 

Savings institutions ............................................. 1,404 4 0 5 387 770 35 68 117 18 

Total assets (in billions) ......................................... $9,377.0 $332.5 $1,492.7 $127.7 $2,898.4 $1,396.3 $506.3 $58.8 $167.5 $2,396.7 

Commercial banks .............................................. 7,817.7 324.7 1,492.7 127.2 2,628.3 325.7 456.9 46.7 146.4 2,269.0 

Savings institutions ............................................. 1,559.3 7.7 0.0 0.6 270.0 1,070.6 49.4 12.2 21.1 127.7 

Total deposits (in billions) ...................................... 6,127.1 108.5 880.7 105.6 2,103.0 841.3 334.4 44.5 138.3 1,571.0 

Commercial banks .............................................. 5,180.2 106.3 880.7 105.1 1,923.9 193.8 302.3 35.2 121.2 1,511.8 

Savings institutions ............................................. 946.9 2.2 0.0 0.4 179.1 647.5 32.1 9.3 17.1 59.2 

Net income (in millions) ......................................... 31,863 3,305 4,121 404 9,523 3,991 1,927 202 462 7,927 

Commercial banks .............................................. 27,286 3,119 4,121 403 8,530 1,162 1,714 156 423 7,657 

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

Performance Ratios (annualized,%) 

4,577 185 0 1 993 2,829 213 47 39 270 

Yield on earning assets ......................................... 5.14 11.22 4.41 5.59 5.29 4.90 5.43 4.34 5.37 4.56 

Cost of funding earning assets .............................. 1.46 2.13 1.54 1.61 1.36 1.77 1.04 1.30 1.54 1.33 

Net interest margin ............................................. 3.68 9.08 2.87 3.98 3.92 3.13 4.39 3.04 3.83 3.23 

Noninterest income to assets ................................ 2.26 11.39 3.12 0.67 1.45 1.22 2.50 6.42 1.15 2.01 

Noninterest expense to assets .............................. 3.20 9.24 3.50 2.69 2.94 2.38 3.51 7.10 3.13 2.82 

Loan and lease loss provision to assets ................ 0.33 3.99 0.32 0.13 0.25 0.10 0.47 0.07 0.17 0.03 

Net operating income to assets ............................. 1.30 3.77 1.09 1.24 1.25 1.03 1.50 1.31 1.06 1.26 

Pretax return on assets ......................................... 2.05 6.11 1.64 1.55 1.90 1.80 2.40 2.05 1.44 2.05 

Return on assets ................................................... 1.38 3.94 1.12 1.27 1.33 1.17 1.52 1.38 1.11 1.36 

Return on equity .................................................... 14.86 23.30 15.15 11.87 14.12 12.89 17.46 8.37 10.41 14.88 

Net charge-offs to loans and leases ...................... 0.64 5.22 1.30 0.12 0.31 0.12 0.71 0.70 0.24 0.34 

Loan and lease loss provision to net charge-offs .. 86.24 101.10 62.63 183.39 122.05 116.23 86.14 34.62 124.26 19.30 

Efficiency ratio ....................................................... 57.44 45.99 63.81 61.82 57.55 57.82 54.76 76.92 66.68 58.12 

% of unprofitable institutions ................................. 5.53 8.57 16.67 2.60 6.24 6.03 5.00 11.73 4.33 2.30 

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

Condition Ratios(%) 

55.24 74.29 83.33 54.34 58.98 46.21 55.71 46.54 54.25 52.87 

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

Loss allowance to: 

87.54 84.47 81.22 92.26 90.44 91.57 87.82 89.68 92.10 85.38 

Loans and leases ............................................... 1.52 5.09 2.15 1.55 1.46 0.63 1.20 1.67 1.40 1.40 

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

Noncurrent assets plus 

149.61 273.76 102.25 128.31 175.25 81.33 110.22 160.11 138.44 179.96 

other real estate owned to assets ...................... 0.67 1.45 0.85 0.85 0.65 0.61 0.91 0.37 0.68 0.46 

Equity capital ratio ................................................. 9.45 17.61 7.41 10.82 9.51 9.07 8.90 16.59 10.72 9.50 

Core capital (leverage) ratio .................................. 8.17 15.40 6.44 10.13 8.32 7.65 7.28 14.41 10.06 8.12 

Tier 1 risk-based capital ratio ................................ 10.93 13.98 8.85 14.92 10.29 12.92 9.00 32.40 16.93 11.00 

Total risk-based capital ratio ................................. 13.37 17.27 11.96 16.07 12.40 14.54 11.62 33.69 18.15 13.82 

Net loans and leases to deposits .......................... 89.18 217.07 63.71 72.43 91.46 114.01 115.88 35.08 66.55 77.26 

Net loans to total assets ........................................ 58.27 70.81 37.59 59.86 66.36 68.69 76.52 26.51 54.94 50.64 

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

Structural Changes 

57.03 28.58 26.29 82.65 70.47 59.16 63.03 74.30 82.51 57.78 

New Charters ..................................................... 27 0 0 0 7 2 0 16 2 0 

Institutions absorbed by mergers ....................... 91 0 0 7 55 5 12 3 5 4 

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

PRIOR FIRST QUARTERS 

(The way it was...) 

3 0 0 0 2 0 0 0 1 0 

Number of institutions ................................. 2003 9,314 41 5 1,800 4,100 1,072 172 501 1,524 99

 ................................ 2001 9,822 57 6 1,941 3,972 1,251 250 496 1,765 84

 ................................ 1999 10,391 65 10 2,219 3,456 1,415 275 653 2,218 80 

Total assets (in billions) .............................. 2003 $8,605.7 $289.3 $1,275.2 $121.7 $3,054.1 $1,418.3 $366.0 $59.1 $201.9 $1,820.2

 ................................ 2001 7,572.7 334.1 1,185.7 116.0 3,775.9 1,064.5 89.8 52.2 206.8 747.7

 ................................ 1999 6,521.9 248.7 1,424.7 120.9 2,844.3 1,076.9 77.5 66.0 264.0 398.8 

Return on Assets (%) .................................. 2003 1.39 3.59 1.08 1.23 1.32 1.53 1.57 1.23 1.13 1.25

 ................................ 2001 1.21 2.87 1.14 1.19 1.21 1.01 0.79 1.83 1.05 0.92

 ................................ 1999 1.26 3.12 1.05 1.19 1.27 0.99 1.29 1.88 1.12 1.54 

Net charge-offs to loans & leases (%) ........ 2003 0.81 5.49 1.51 0.15 0.55 0.18 0.90 0.36 0.25 0.61

 ................................ 2001 0.64 3.78 0.55 0.17 0.52 0.13 0.68 0.45 0.20 0.68

 ................................ 1999 

Noncurrent assets plus

0.53 4.00 0.48 0.13 0.39 0.11 0.65 0.32 0.22 0.44 

OREO to assets (%) ................................ 2003 0.86 1.54 1.10 0.97 0.86 0.68 0.81 0.63 0.72 0.76

 ................................ 2001 0.75 1.49 0.67 0.80 0.81 0.51 1.19 0.24 0.61 0.62

 ................................ 1999 0.67 1.66 0.64 0.87 0.66 0.58 1.09 0.32 0.60 0.48 

Equity capital ratio (%) ................................ 2003 9.20 16.59 7.20 10.78 9.36 9.01 8.45 16.06 10.57 8.97

 ................................ 2001 8.63 12.07 6.62 10.82 8.99 8.26 7.73 16.94 10.48 7.69

 ................................ 1999 8.67 14.14 6.87 10.68 8.93 8.28 8.97 14.41 10.23 8.21 

* See Table IV-A (page 8) for explanations. 

FIRST QUARTER 2004 6 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE III-A. First Quarter 2004, All FDIC-Insured Institutions 

FIRST QUARTER 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

9,116 4,300 4,238 465 113 1,162 1,231 1,996 2,122 1,853 752 

Commercial banks .............................................. 7,712 3,831 3,462 335 84 607 1,075 1,635 2,011 1,718 666 

Savings institutions ............................................. 1,404 469 776 130 29 555 156 361 111 135 86 

Total assets (in billions) ......................................... $9,377.0 $221.8 $1,169.2 $1,282.1 $6,703.8 $3,186.7 $1,995.5 $1,700.1 $738.8 $571.0 $1,184.8 

Commercial banks .............................................. 7,817.7 197.5 921.4 911.5 5,787.2 2,635.4 1,861.7 1,553.9 693.2 476.3 597.2 

Savings institutions ............................................. 1,559.3 24.3 247.8 370.6 916.5 551.3 133.9 146.2 45.5 94.7 587.6 

Total deposits (in billions) ...................................... 6,127.1 185.2 936.1 864.3 4,141.5 2,013.6 1,356.7 1,111.0 509.8 429.6 706.4 

Commercial banks .............................................. 5,180.2 166.1 747.7 624.0 3,642.4 1,656.4 1,261.9 1,006.5 481.2 377.1 397.3 

Savings institutions ............................................. 946.9 19.1 188.4 240.3 499.1 357.2 94.8 104.5 28.7 52.5 309.2 

Net income (in millions) ......................................... 31,863 553 3,386 4,691 23,232 10,374 6,410 5,844 2,810 1,909 4,517 

Commercial banks .............................................. 27,286 497 2,883 3,401 20,505 8,752 6,062 5,360 2,722 1,502 2,888 

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

Performance Ratios (annualized, %) 

4,577 56 504 1,290 2,727 1,622 347 484 88 408 1,628 

Yield on earning assets ......................................... 5.14 5.61 5.56 5.30 5.01 4.92 5.09 4.91 5.87 5.35 5.52 

Cost of funding earning assets .............................. 1.46 1.53 1.58 1.50 1.43 1.57 1.48 1.47 1.18 1.35 1.35 

Net interest margin ............................................. 3.68 4.08 3.98 3.80 3.58 3.35 3.61 3.44 4.69 4.00 4.17 

Noninterest income to assets ................................ 2.26 1.19 1.30 1.85 2.54 2.79 1.95 1.92 2.63 1.52 1.93 

Noninterest expense to assets .............................. 3.20 3.54 3.20 3.08 3.21 3.42 3.10 2.89 3.90 3.22 2.78 

Loan and lease loss provision to assets ................ 0.33 0.17 0.20 0.30 0.36 0.35 0.15 0.27 0.65 0.22 0.52 

Net operating income to assets ............................. 1.30 0.96 1.12 1.31 1.34 1.24 1.22 1.26 1.48 1.25 1.54 

Pretax return on assets ......................................... 2.05 1.29 1.62 2.16 2.13 1.96 1.96 2.01 2.26 1.82 2.46 

Return on assets ................................................... 1.38 1.00 1.17 1.48 1.41 1.33 1.32 1.38 1.52 1.36 1.57 

Return on equity .................................................... 14.86 8.60 11.60 13.98 16.00 14.58 15.24 16.02 14.81 14.13 14.03 

Net charge-offs to loans and leases ...................... 0.64 0.19 0.23 0.44 0.78 0.96 0.36 0.43 0.92 0.34 0.66 

Loan and lease loss provision to net charge-offs .. 86.24 145.82 133.80 110.76 80.05 73.91 68.03 95.58 98.71 108.84 109.68 

Efficiency ratio ....................................................... 57.44 71.46 63.95 56.80 56.13 59.62 60.24 56.38 56.15 62.03 47.75 

% of unprofitable institutions ................................. 5.53 9.28 2.24 1.51 2.65 6.20 8.77 4.41 3.68 4.86 9.04 

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

Condition Ratios(%) 

55.24 52.33 57.17 61.72 67.26 57.57 60.76 47.44 53.86 56.72 63.56 

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

Loss Allowance to: 

87.54 91.93 92.18 91.44 85.84 85.42 86.58 89.17 88.26 90.48 90.69 

Loans and leases ............................................... 1.52 1.41 1.33 1.43 1.58 1.84 1.27 1.50 1.71 1.32 1.24 

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

Noncurrent assets plus 

149.61 126.64 161.51 173.13 144.90 138.51 191.13 141.06 153.89 136.00 153.03 

other real estate owned to assets ...................... 0.67 0.84 0.66 0.59 0.68 0.69 0.46 0.79 0.88 0.75 0.64 

Equity capital ratio ................................................. 9.45 11.72 10.19 10.71 9.00 9.13 8.58 8.74 10.44 9.64 12.07 

Core capital (leverage) ratio .................................. 8.17 11.30 9.59 9.42 7.56 7.82 7.35 7.91 8.37 8.72 10.38 

Tier 1 risk-based capital ratio ................................ 10.93 17.43 13.74 13.42 9.84 10.69 9.63 9.98 10.60 12.63 14.87 

Total risk-based capital ratio ................................. 13.37 18.54 14.97 15.04 12.67 13.34 12.08 12.80 12.70 14.01 16.85 

Net loans and leases to deposits .......................... 89.18 71.41 80.30 91.94 91.41 75.18 85.56 97.87 102.42 79.49 118.71 

Net loans to total assets ........................................ 58.27 59.62 64.29 61.98 56.47 47.51 58.17 63.96 70.68 59.81 70.78 

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

Structural Changes 

57.03 83.48 79.96 66.71 50.30 46.24 62.01 60.05 66.97 74.98 58.43 

New Charters ..................................................... 27 27 0 0 0 2 12 1 2 5 5 

Institutions absorbed by mergers ....................... 91 34 41 14 2 12 7 13 20 17 22 

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

PRIOR FIRST QUARTERS 

(The way it was...) 

3 3 0 0 0 2 1 0 0 0 0 

Number of institutions ................................. 2003 9,314 4,614 4,135 456 109 1,201 1,243 2,046 2,159 1,893 772

 ................................ 2001 9,822 5,379 3,909 434 100 1,282 1,300 2,172 2,255 1,993 820

 ................................ 1999 10,391 6,065 3,793 443 90 1,333 1,334 2,329 2,379 2,160 856 

Total assets (in billions) .............................. 2003 $8,605.7 $235.8 $1,138.2 $1,292.0 $5,939.7 $2,938.4 $1,749.1 $1,608.2 $437.1 $591.7 $1,281.3

 ................................ 2001 7,572.7 261.1 1,032.6 1,220.7 5,058.3 2,650.4 1,559.2 1,316.1 457.2 507.7 1,082.1

 ................................ 1999 6,521.9 286.2 969.7 1,232.7 4,033.4 2,290.7 1,133.4 1,051.7 410.1 553.5 1,082.5 

Return on Assets (%) .................................. 2003 1.39 1.02 1.19 1.33 1.45 1.26 1.36 1.40 1.53 1.39 1.64

 ................................ 2001 1.21 0.95 1.12 1.24 1.24 1.15 1.13 1.04 1.21 1.20 1.71

 ................................ 1999 1.26 1.04 1.21 1.54 1.21 1.25 1.23 1.31 1.45 1.15 1.26 

Net charge-offs to loans & leases (%) ........ 2003 0.81 0.19 0.27 0.49 1.03 1.24 0.62 0.63 1.04 0.37 0.65

 ................................ 2001 0.64 0.18 0.24 0.60 0.77 0.74 0.57 0.57 0.79 0.31 0.72

 ................................ 1999 

Noncurrent assets plus

0.53 0.16 0.27 0.69 0.57 0.71 0.44 0.38 0.64 0.37 0.51 

OREO to assets (%) ................................ 2003 0.86 0.92 0.76 0.69 0.92 0.94 0.76 0.98 0.82 0.83 0.72

 ................................ 2001 0.75 0.72 0.62 0.72 0.79 0.73 0.84 0.79 0.71 0.72 0.67

 ................................ 1999 0.67 0.75 0.64 0.73 0.66 0.76 0.59 0.60 0.62 0.69 0.67 

Equity capital ratio (%) ................................ 2003 9.20 11.35 10.02 10.09 8.76 8.88 9.22 8.60 10.61 9.60 9.97

 ................................ 2001 8.63 11.41 9.96 9.12 8.10 8.31 8.98 8.03 9.83 9.19 8.89

 ................................ 1999 8.67 11.20 9.90 9.62 7.90 8.23 9.27 8.67 9.04 8.78 8.76 

* See Table IV-A (page 9) for explanations. 

ALL FDIC-INSURED INSTITUTIONS 7 FIRST QUARTER 2004 
FDIC Quarterly Banking Profile 

TABLE IV-A. Full Year 2003, All FDIC-Insured Institutions 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

9,181 36 6 1,766 4,252 1,033 157 529 1,311 91 

Commercial banks ................................................ 7,770 34 6 1,762 3,875 253 119 456 1,192 73 

Savings institutions ............................................... 1,411 2 0 4 377 780 38 73 119 18 

Total assets (in billions) ........................................... $9,075.3 $348.4 $1,447.9 $129.1 $2,923.7 $1,657.6 $146.6 $60.9 $171.7 $2,189.4 

Commercial banks ................................................ 7,601.2 339.4 1,447.9 128.8 2,671.8 580.0 97.6 47.5 147.6 2,140.6 

Savings institutions ............................................... 1,474.1 9.0 0.0 0.3 251.9 1,077.5 49.0 13.5 24.1 48.8 

Total deposits (in billions) ........................................ 5,954.3 120.1 848.5 106.9 2,128.2 1,026.0 70.6 45.2 141.7 1,467.1 

Commercial banks ................................................ 5,029.0 115.3 848.5 106.7 1,959.0 365.2 40.0 35.0 122.2 1,437.3 

Savings institutions ............................................... 925.3 4.8 0.0 0.3 169.2 660.8 30.7 10.2 19.5 29.9 

Net income (in millions) ........................................... 120,596 12,505 15,351 1,512 36,321 22,248 1,859 1,112 1,774 27,913 

Commercial banks ................................................ 102,546 12,114 15,351 1,509 33,266 9,171 1,142 901 1,596 27,496 

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

Performance Ratios 

18,050 392 0 3 3,055 13,077 717 211 179 416 

Yield on earning assets ........................................... 5.36 10.63 4.70 5.91 5.48 5.17 6.88 4.58 5.69 4.83 

Cost of funding earning assets ................................ 1.62 2.35 1.67 1.89 1.56 1.81 1.97 1.50 1.83 1.38 

Net interest margin ............................................... 3.74 8.27 3.03 4.02 3.92 3.36 4.91 3.08 3.86 3.45 

Noninterest income to assets .................................. 2.32 12.36 2.82 0.70 1.61 1.52 2.36 8.84 0.99 2.09 

Noninterest expense to assets ................................ 3.20 9.19 3.26 2.73 2.99 2.58 3.45 9.29 2.99 2.88 

Loan and lease loss provision to assets .................. 0.43 3.80 0.45 0.21 0.35 0.12 1.39 0.26 0.26 0.23 

Net operating income to assets ............................... 1.29 4.04 1.01 1.18 1.23 1.16 1.26 1.29 0.99 1.26 

Pretax return on assets ........................................... 2.05 6.41 1.61 1.48 1.87 2.15 2.08 2.56 1.37 1.97 

Return on assets ..................................................... 1.38 4.08 1.10 1.21 1.28 1.38 1.32 1.82 1.06 1.33 

Return on equity ...................................................... 15.05 24.83 15.11 11.16 13.99 15.07 17.57 11.42 10.01 14.64 

Net charge-offs to loans and leases ........................ 0.78 5.22 1.40 0.27 0.46 0.18 2.10 1.22 0.39 0.62 

Loan and lease loss provision to net charge-offs .... 91.48 97.10 79.35 127.10 114.16 96.83 82.05 74.98 119.31 67.32 

Efficiency ratio ......................................................... 56.59 45.32 62.12 61.92 57.06 56.43 50.12 79.51 65.58 56.72 

% of unprofitable institutions ................................... 5.84 2.78 0.00 2.89 6.98 5.03 3.18 12.29 4.81 2.20 

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

Condition Ratios(%) 

58.50 63.89 66.67 50.91 67.69 50.82 57.32 39.70 52.48 59.34 

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

Loss Allowance to: 

86.55 84.51 78.17 91.59 90.05 89.84 91.94 88.09 91.77 84.12 

Loans and leases ................................................. 1.57 4.80 2.28 1.53 1.47 0.72 1.70 1.78 1.38 1.51 

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

Noncurrent assets plus

140.42 236.49 102.23 133.19 166.44 75.66 158.31 183.45 129.65 158.47 

other real estate owned to assets ........................ 0.75 1.62 0.93 0.80 0.68 0.73 0.99 0.33 0.71 0.59 

Equity capital ratio ................................................... 9.15 16.04 7.39 10.64 9.24 9.10 7.30 16.74 10.45 8.87 

Core capital (leverage) ratio .................................... 7.88 14.64 6.33 10.10 8.13 7.37 7.60 14.44 9.94 7.47 

Tier 1 risk-based capital ratio .................................. 10.47 12.19 8.84 14.77 10.14 11.81 9.18 32.46 16.70 9.82 

Total risk-based capital ratio ................................... 13.00 15.37 12.11 15.91 12.26 13.93 12.34 33.66 17.92 12.70 

Net loans and leases to deposits ............................ 89.83 211.94 65.84 72.47 90.74 109.78 168.75 35.46 66.54 79.83 

Net loans to total assets .......................................... 58.94 73.04 38.58 60.03 66.05 67.95 81.32 26.30 54.91 53.49 

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

Structural Changes 

57.44 30.28 25.32 82.84 70.78 60.14 48.08 73.07 82.49 59.88 

New Charters ....................................................... 118 0 0 2 27 4 0 84 1 0 

Institutions absorbed by mergers ......................... 273 1 1 27 162 37 4 2 14 25 

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

PRIOR FULL YEARS 

(The way it was...) 

3 0 1 0 1 1 0 0 0 0 

Number of institutions ................................... 2002 9,354 40 5 1,823 4,070 1,107 196 488 1,525 100

 ................................ 2000 9,904 56 7 1,977 3,954 1,266 288 512 1,755 89

 ................................ 1998 10,464 69 11 2,279 3,372 1,452 273 652 2,264 92 

Total assets (in billions) ................................. 2002 $8,436.0 $299.3 $1,273.5 $123.8 $2,960.4 $1,342.0 $166.5 $60.1 $197.4 $2,013.0

 ................................ 2000 7,462.9 295.1 1,229.4 120.4 3,823.3 1,000.2 87.8 50.8 205.4 650.5

 ................................ 1998 6,531.1 258.0 1,443.9 125.0 2,786.3 1,078.6 81.4 67.9 270.4 419.6 

Return on Assets (%) .................................... 2002 1.30 3.61 0.74 1.24 1.30 1.31 1.35 1.08 1.14 1.33

 ................................ 2000 1.14 3.00 1.06 1.22 1.12 0.96 1.09 1.42 1.13 0.91

 ................................ 1998 1.16 2.88 0.60 1.20 1.29 1.05 1.25 1.70 1.13 1.40 

Net charge-offs to loans & leases (%) .......... 2002 0.97 6.12 1.77 0.29 0.65 0.20 1.07 1.36 0.35 0.81

 ................................ 2000 0.59 3.72 0.51 0.23 0.50 0.11 0.49 1.62 0.28 0.62

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

Noncurrent assets plus

0.59 4.35 0.58 0.24 0.36 0.19 0.65 0.83 0.35 0.60 

OREO to assets (%) ................................... 2002 0.90 1.68 1.19 0.85 0.87 0.71 1.28 0.59 0.70 0.75

 ................................ 2000 0.71 1.56 0.66 0.69 0.76 0.48 1.11 0.22 0.57 0.58

 ................................ 1998 0.66 1.75 0.65 0.74 0.62 0.60 1.01 0.31 0.59 0.53 

Equity capital ratio (%) .................................. 2002 9.20 15.49 7.14 10.76 9.36 9.07 7.35 17.18 10.62 9.10

 ................................ 2000 8.49 12.25 6.73 10.43 8.66 8.28 7.94 16.15 10.30 7.90

 ................................ 1998 8.52 13.51 6.71 10.60 8.79 8.30 8.50 14.23 10.01 8.07 

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

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

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

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

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

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

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

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

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

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

activity with no identified asset concentrations. 

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

activity with no identified asset concentrations. 

FIRST QUARTER 2004 8 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE IV-A. Full Year 2003, All FDIC-Insured Institutions 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than $100 

Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

9,181 4,390 4,210 471 110 1,173 1,227 2,011 2,133 1,866 771 

Commercial banks .............................................. 7,770 3,912 3,434 341 83 612 1,071 1,650 2,021 1,731 685 

Savings institutions ............................................. 1,411 478 776 130 27 561 156 361 112 135 86 

Total assets (in billions) ......................................... $9,075.3 $225.7 $1,160.5 $1,312.6 $6,376.6 $3,084.8 $1,882.7 $1,693.9 $456.3 $563.3 $1,394.3 

Commercial banks .............................................. 7,601.2 200.8 910.0 947.3 5,543.1 2,557.3 1,751.9 1,550.3 411.7 471.5 858.5 

Savings institutions ............................................. 1,474.1 24.9 250.4 365.4 833.4 527.5 130.8 143.6 44.6 91.8 535.7 

Total deposits (in billions) ...................................... 5,954.3 188.8 926.9 882.1 3,956.5 1,959.5 1,288.2 1,102.4 291.0 424.1 889.0 

Commercial banks .............................................. 5,029.0 169.1 736.9 645.8 3,477.3 1,609.9 1,196.0 998.0 263.1 371.2 590.8 

Savings institutions ............................................. 925.3 19.7 190.1 236.3 479.3 349.6 92.2 104.4 27.9 53.0 298.2 

Net income (in millions) ......................................... 120,596 2,076 13,190 17,663 87,666 37,866 24,787 21,648 7,192 7,501 21,601 

Commercial banks .............................................. 102,546 1,815 11,061 13,165 76,505 32,139 23,511 19,927 6,820 5,948 14,201 

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

Performance Ratios 

18,050 262 2,130 4,498 11,160 5,727 1,276 1,720 372 1,553 7,400 

Yield on earning assets ......................................... 5.36 5.86 5.82 5.48 5.22 5.18 5.33 5.22 6.25 5.64 5.55 

Cost of funding earning assets .............................. 1.62 1.79 1.82 1.68 1.57 1.75 1.59 1.66 1.66 1.56 1.38 

Net interest margin ............................................. 3.74 4.07 4.00 3.80 3.66 3.43 3.73 3.56 4.59 4.08 4.17 

Noninterest income to assets ................................ 2.32 1.43 1.46 1.93 2.58 2.70 2.15 1.94 2.73 1.90 2.21 

Noninterest expense to assets .............................. 3.20 3.71 3.33 3.10 3.18 3.29 3.17 2.86 3.90 3.55 3.08 

Loan and lease loss provision to assets ................ 0.43 0.25 0.28 0.36 0.47 0.49 0.26 0.47 0.70 0.28 0.43 

Net operating income to assets ............................. 1.29 0.89 1.09 1.28 1.34 1.20 1.28 1.19 1.58 1.28 1.52 

Pretax return on assets ......................................... 2.05 1.26 1.63 2.11 2.15 1.91 2.03 1.91 2.34 1.85 2.55 

Return on assets ................................................... 1.38 0.95 1.18 1.42 1.42 1.28 1.38 1.31 1.63 1.37 1.62 

Return on equity .................................................... 15.05 8.15 11.77 13.89 16.33 14.27 15.32 15.31 15.38 14.34 16.13 

Net charge-offs to loans and leases ...................... 0.78 0.31 0.36 0.53 0.94 1.16 0.54 0.72 1.09 0.40 0.58 

Loan and lease loss provision to net charge-offs .. 91.48 137.62 118.95 109.39 86.61 85.27 78.24 100.97 93.00 113.69 105.63 

Efficiency ratio ....................................................... 56.59 71.68 64.52 56.58 54.80 57.84 58.57 55.02 55.34 62.86 51.31 

% of unprofitable institutions ................................. 5.84 9.89 2.23 1.49 0.91 5.71 9.21 5.12 3.28 5.79 9.73 

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

Condition Ratios(%) 

58.50 52.57 63.52 66.67 68.18 60.78 65.69 57.43 54.66 53.48 69.13 

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

Loss Allowance to: 

86.55 91.51 91.79 90.52 84.60 83.79 85.18 88.92 89.76 90.16 89.09 

Loans and leases ............................................... 1.57 1.41 1.33 1.49 1.65 1.93 1.33 1.54 2.12 1.34 1.25 

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

Noncurrent assets plus

140.42 128.50 153.96 165.00 134.98 131.26 167.72 131.36 199.94 135.13 129.09 

other real estate owned to assets ...................... 0.75 0.83 0.68 0.62 0.78 0.78 0.56 0.86 0.84 0.76 0.76 

Equity capital ratio ................................................. 9.15 11.48 10.06 10.35 8.66 9.05 8.78 8.49 10.58 9.61 10.04 

Core capital (leverage) ratio .................................. 7.88 11.11 9.50 9.16 7.19 7.74 7.41 7.87 9.01 8.69 8.14 

Tier 1 risk-based capital ratio ................................ 10.47 17.08 13.74 13.22 9.22 10.62 9.54 9.80 11.78 12.68 11.10 

Total risk-based capital ratio ................................. 13.00 18.20 14.96 14.91 12.16 13.31 12.11 12.66 13.51 14.08 13.46 

Net loans and leases to deposits .......................... 89.83 71.84 79.97 89.98 92.96 76.26 87.71 98.33 107.52 79.57 111.39 

Net loans to total assets ........................................ 58.94 60.09 63.88 60.47 57.68 48.44 60.01 63.99 68.58 59.91 71.02 

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

Structural Changes 

57.44 83.63 79.78 66.43 50.60 46.19 63.78 59.89 63.78 75.03 61.63 

New Charters ..................................................... 118 114 3 1 0 9 36 7 13 19 34 

Institutions absorbed by mergers ....................... 273 120 121 26 6 47 42 58 44 42 40 

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

PRIOR FULL YEARS 

(The way it was...) 

3 2 1 0 0 1 0 1 0 0 1 

Number of institutions ................................. 2002 9,354 4,681 4,117 450 106 1,212 1,237 2,055 2,167 1,901 782

 ................................ 2000 9,904 5,464 3,898 437 105 1,292 1,307 2,197 2,268 2,014 826

 ................................ 1998 10,464 6,110 3,817 450 87 1,350 1,341 2,346 2,390 2,180 857 

Total assets (in billions) .............................. 2002 $8,436.0 $237.9 $1,124.8 $1,279.0 $5,794.3 $2,893.0 $1,711.1 $1,571.9 $440.1 $581.5 $1,238.3

 ................................ 2000 7,462.9 262.1 1,018.5 1,199.1 4,983.2 2,580.7 1,570.8 1,255.4 461.9 561.2 1,032.9

 ................................ 1998 6,531.1 288.6 972.0 1,259.8 4,010.6 2,282.7 1,141.4 1,065.4 413.2 548.8 1,079.6 

Return on Assets (%) ................................. 2002 1.30 1.00 1.16 1.44 1.31 1.11 1.34 1.28 1.58 1.41 1.58

 ................................ 2000 1.14 0.95 1.15 1.20 1.14 1.23 1.02 1.02 1.33 1.04 1.23

 ................................ 1998 1.16 1.09 1.21 1.41 1.07 1.05 1.29 1.20 1.45 1.18 1.08 

Net charge-offs to loans & leases (%) ......... 2002 0.97 0.32 0.41 0.69 1.18 1.45 0.71 0.77 1.19 0.44 0.81

 ................................ 2000 0.59 0.37 0.27 0.59 0.67 0.67 0.61 0.39 0.76 0.37 0.67

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

Noncurrent assets plus

0.59 0.28 0.36 0.83 0.59 0.79 0.44 0.39 0.68 0.43 0.64 

OREO to assets (%) ................................ 2002 0.90 0.85 0.74 0.69 0.98 1.01 0.78 1.00 0.82 0.81 0.74

 ................................ 2000 0.71 0.66 0.59 0.67 0.75 0.71 0.82 0.74 0.62 0.66 0.62

 ................................ 1998 0.66 0.72 0.64 0.75 0.64 0.78 0.54 0.58 0.57 0.63 0.67 

Equity capital ratio (%) ............................... 2002 9.20 11.29 10.05 10.06 8.76 8.85 9.37 8.57 10.33 9.60 9.98

 ................................ 2000 8.49 11.33 9.82 8.94 7.96 8.31 8.61 7.98 9.48 8.78 8.75

 ................................ 1998 8.52 11.13 9.84 9.36 7.76 8.13 9.17 8.42 8.80 8.73 8.58 

* Regions: 

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

Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

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

ALL FDIC-INSURED INSTITUTIONS 9 FIRST QUARTER 2004 
FDIC Quarterly Banking Profile 

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

March 31, 2004 All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ...................................... 0.75 0.56 0.95 1.35 0.71 0.75 0.90 1.28 1.39 0.64 

Construction and development .................................... 0.69 0.00 3.95 1.50 0.67 0.73 1.07 1.18 1.10 0.41 

Commercial real estate ................................................ 0.61 0.12 0.74 1.23 0.63 0.53 0.26 0.82 1.21 0.46 

Multifamily residential real estate ................................. 0.25 0.00 0.00 0.54 0.30 0.19 0.12 0.79 0.79 0.16 

Home equity loans ....................................................... 0.36 0.47 0.19 0.70 0.37 0.34 0.32 0.41 0.61 0.38 

Other 1-4 family residential .......................................... 0.94 1.46 0.91 1.68 1.00 0.84 1.31 1.62 1.60 0.79 

Commercial and industrial loans ..................................... 0.71 1.89 0.58 1.86 0.88 0.75 0.56 1.16 1.63 0.41 

Loans to individuals ......................................................... 1.66 2.15 1.95 2.15 1.33 0.82 1.44 2.23 2.02 1.28 

Credit card loans .......................................................... 2.13 2.17 2.28 2.16 2.24 1.09 1.72 3.37 2.72 1.81 

Other loans to individuals ............................................. 1.37 1.91 1.77 2.15 1.25 0.78 1.38 2.08 1.98 1.19 

All other loans and leases (including farm) ..................... 0.45 0.01 0.52 1.46 0.69 0.60 0.43 0.87 0.82 0.20 

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

Percent of Loans Noncurrent** 

0.85 2.01 1.02 1.52 0.79 0.75 0.96 1.38 1.47 0.59 

All real estate loans ......................................................... 0.76 0.36 1.19 1.07 0.71 0.78 1.24 0.85 0.98 0.55 

Construction and development .................................... 0.68 0.34 2.29 1.18 0.59 1.22 0.98 1.19 0.93 0.58 

Commercial real estate ................................................ 0.84 0.56 2.06 1.26 0.80 0.81 0.99 0.97 1.45 0.80 

Multifamily residential real estate ................................. 0.30 0.00 0.45 0.75 0.36 0.16 0.38 0.73 0.81 0.25 

Home equity loans ....................................................... 0.21 0.21 0.11 0.20 0.23 0.16 0.24 0.25 0.33 0.23 

Other 1-4 family residential .......................................... 0.86 1.88 0.91 0.94 0.86 0.87 1.76 0.79 0.83 0.50 

Commercial and industrial loans ..................................... 1.88 1.55 4.10 1.91 1.32 1.60 1.24 2.07 1.59 1.73 

Loans to individuals ......................................................... 1.36 2.01 2.59 0.79 0.60 0.31 0.64 1.14 0.84 0.68 

Credit card loans .......................................................... 2.04 2.06 2.32 1.80 1.65 0.94 1.86 3.65 2.46 1.78 

Other loans to individuals ............................................. 0.95 1.42 2.74 0.76 0.51 0.24 0.39 0.80 0.75 0.48 

All other loans and leases (including farm) ..................... 0.53 0.00 0.47 1.21 0.76 0.51 0.77 0.89 0.74 0.38 

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

Percent of Loans Charged-off (net, YTD) 

1.01 1.86 2.09 1.20 0.83 0.78 1.08 1.04 1.01 0.78 

All real estate loans ......................................................... 0.08 0.11 0.06 0.03 0.09 0.04 0.17 0.03 0.07 0.09 

Construction and development .................................... 0.05 0.00 0.00 0.02 0.05 0.03 0.08 -0.30 0.08 0.04 

Commercial real estate ................................................ 0.07 0.00 0.00 0.09 0.08 0.06 0.09 0.01 0.13 0.04 

Multifamily residential real estate ................................. 0.01 0.00 0.00 0.02 0.02 -0.02 0.13 0.00 0.03 0.01 

Home equity loans ....................................................... 0.12 0.11 0.00 0.03 0.13 0.05 0.26 0.10 0.05 0.10 

Other 1-4 family residential .......................................... 0.09 0.10 0.02 0.06 0.14 0.04 0.15 0.08 0.06 0.10 

Commercial and industrial loans ..................................... 0.70 4.75 1.00 0.24 0.54 0.52 0.93 1.29 0.40 0.61 

Loans to individuals ......................................................... 2.99 5.62 3.51 0.58 1.31 1.35 2.23 3.49 1.03 1.31 

Credit card loans .......................................................... 5.63 5.70 5.98 4.07 4.78 2.45 6.47 24.70 7.67 4.31 

Other loans to individuals ............................................. 1.31 4.53 2.08 0.47 0.97 1.20 1.35 0.66 0.66 0.77 

All other loans and leases (including farm) ..................... 0.19 0.00 0.14 0.00 0.42 0.20 0.23 0.27 0.11 0.12 

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

Loans Outstanding (in billions) 

0.60 5.20 1.30 0.10 0.30 0.10 0.70 0.70 0.20 0.30 

All real estate loans ......................................................... $3,274.3 $13.5 $117.2 $41.4 $1,281.1 $879.2 $242.0 $10.8 $65.0 $624.2 

Construction and development .................................... 285.4 0.0 1.8 2.1 200.5 22.8 10.1 0.8 3.5 43.8 

Commercial real estate ................................................ 699.5 0.1 7.2 10.0 469.1 50.2 30.6 3.1 15.5 113.7 

Multifamily residential real estate ................................. 156.7 0.0 1.4 0.8 88.0 46.4 3.2 0.4 1.2 15.3 

Home equity loans ....................................................... 376.6 12.2 13.2 0.7 125.9 73.4 59.6 0.4 2.8 88.3 

Other 1-4 family residential .......................................... 1,673.4 1.2 65.7 13.0 374.7 685.4 137.0 5.9 38.0 352.5 

Commercial and industrial loans ..................................... 910.2 11.4 140.6 11.4 405.4 31.0 42.7 1.9 10.1 255.7 

Loans to individuals ......................................................... 831.7 218.4 159.6 6.3 163.3 46.5 85.2 2.3 12.6 137.6 

Credit card loans .......................................................... 314.0 202.7 56.4 0.2 13.6 5.0 14.6 0.3 0.6 20.5 

Other loans to individuals ............................................. 517.7 15.6 103.1 6.2 149.7 41.5 70.5 2.1 11.9 117.1 

All other loans and leases (including farm) ..................... 535.2 4.9 157.3 18.6 103.1 8.7 22.3 0.8 5.8 213.7 

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

Memo: Other Real Estate Owned (in millions) 

5,551.4 248.1 574.7 77.7 1,953.0 965.3 392.2 15.9 93.5 1,231.2 

All other real estate owned .............................................. 5,263.1 7.0 245.4 142.8 2,612.2 1,026.6 334.4 42.0 184.3 668.6 

Construction and development .................................... 607.1 0.0 0.0 7.0 431.1 70.0 1.3 1.9 16.0 79.8 

Commercial real estate ................................................ 1,812.7 0.3 60.3 55.2 1,173.2 113.1 77.6 22.8 78.4 231.9 

Multifamily residential real estate ................................. 124.3 0.0 4.0 2.9 101.7 4.2 0.2 0.9 2.2 8.2 

1-4 family residential .................................................... 2,510.6 6.7 114.1 41.7 853.6 840.0 248.6 15.2 80.9 309.9 

Farmland ...................................................................... 115.7 0.0 0.0 36.0 56.9 0.2 6.9 1.2 6.7 7.9 

* See Table IV-A (page 8) for explanations.
 

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

FIRST QUARTER 2004 10 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

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

March 31, 2004 

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ............................ 0.75 1.36 0.86 0.64 0.73 0.66 0.65 0.94 0.88 1.00 0.65 

Construction and development ........................... 0.69 1.01 0.69 0.64 0.69 0.70 0.42 0.83 0.89 0.80 0.80 

Commercial real estate ...................................... 0.61 1.09 0.69 0.68 0.47 0.60 0.47 0.78 0.52 0.83 0.45 

Multifamily residential real estate ....................... 0.25 0.74 0.41 0.22 0.21 0.12 0.38 0.46 0.26 0.68 0.15 

Home equity loans .............................................. 0.36 0.64 0.49 0.45 0.33 0.29 0.36 0.44 0.36 0.40 0.29 

Other 1-4 family residential ................................ 0.94 1.74 1.19 0.71 0.91 0.73 0.87 1.29 1.21 1.30 0.78 

Commercial and industrial loans ........................... 0.71 1.75 1.13 1.03 0.56 0.64 0.54 0.77 0.83 1.04 0.91 

Loans to individuals ............................................... 1.66 2.25 1.76 1.71 1.63 1.80 1.47 1.39 1.97 1.37 1.63 

Credit card loans ................................................ 2.13 1.72 3.68 2.58 2.05 2.12 2.41 2.35 2.49 0.82 1.88 

Other loans to individuals ................................... 1.37 2.26 1.52 1.28 1.33 1.57 1.26 1.17 1.29 1.49 1.26 

All other loans and leases (including farm) ........... 0.45 1.38 0.92 0.38 0.40 0.54 0.17 0.38 0.78 1.02 0.46 

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

Percent of Loans Noncurrent** 

0.85 1.51 0.97 0.80 0.82 0.88 0.68 0.88 1.05 1.05 0.81 

All real estate loans ............................................... 0.76 0.99 0.73 0.71 0.78 0.70 0.49 1.11 1.01 0.95 0.64 

Construction and development ........................... 0.68 0.87 0.72 0.71 0.62 0.70 0.41 0.93 0.77 0.69 0.77 

Commercial real estate ...................................... 0.84 1.13 0.80 0.86 0.84 0.77 0.62 1.20 0.80 1.01 0.66 

Multifamily residential real estate ....................... 0.30 0.55 0.46 0.35 0.22 0.15 0.21 0.64 0.57 1.44 0.08 

Home equity loans .............................................. 0.21 0.40 0.26 0.26 0.20 0.17 0.15 0.32 0.25 0.24 0.12 

Other 1-4 family residential ................................ 0.86 0.95 0.74 0.73 0.91 0.69 0.53 1.43 1.41 0.98 0.74 

Commercial and industrial loans ........................... 1.88 1.73 1.28 1.38 2.07 2.77 1.51 1.62 1.18 1.22 1.50 

Loans to individuals ............................................... 1.36 0.95 0.83 0.89 1.48 1.98 0.76 0.64 1.60 0.56 1.23 

Credit card loans ................................................ 2.04 1.43 3.09 1.84 2.04 2.23 1.73 1.64 2.50 0.75 1.74 

Other loans to individuals ................................... 0.95 0.94 0.55 0.42 1.08 1.79 0.54 0.42 0.45 0.52 0.49 

All other loans and leases (including farm) ........... 0.53 1.18 0.95 0.64 0.47 0.59 0.29 0.42 0.76 1.41 0.86 

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

Percent of Loans Charged-off (net, YTD) 

1.01 1.11 0.82 0.83 1.09 1.33 0.67 1.07 1.11 0.97 0.81 

All real estate loans ............................................... 0.08 0.05 0.05 0.07 0.10 0.05 0.06 0.16 0.08 0.14 0.04 

Construction and development ........................... 0.05 0.11 0.05 0.04 0.05 0.02 0.01 0.09 0.10 0.06 0.03 

Commercial real estate ...................................... 0.07 0.04 0.04 0.09 0.08 0.04 0.04 0.10 0.11 0.10 0.07 

Multifamily residential real estate ....................... 0.01 0.05 0.09 -0.01 0.00 0.02 0.02 0.07 0.05 -0.07 -0.02 

Home equity loans .............................................. 0.12 0.08 0.04 0.09 0.14 0.05 0.11 0.23 0.12 0.16 0.03 

Other 1-4 family residential ................................ 0.09 0.06 0.05 0.07 0.10 0.04 0.07 0.21 0.06 0.24 0.04 

Commercial and industrial loans ........................... 0.70 0.39 0.41 0.54 0.78 0.84 0.58 0.52 0.59 0.59 1.07 

Loans to individuals ............................................... 2.99 0.88 1.73 2.64 3.18 3.56 1.82 1.82 4.44 1.06 3.51 

Credit card loans ................................................ 5.63 2.71 9.88 5.72 5.53 5.71 5.99 5.13 7.20 2.25 4.66 

Other loans to individuals ................................... 1.31 0.83 0.73 1.09 1.43 1.83 0.87 1.07 0.67 0.80 1.73 

All other loans and leases (including farm) ........... 0.19 0.10 0.24 0.20 0.19 0.18 0.12 0.23 0.15 0.35 0.26 

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

Loans Outstanding (in billions) 

0.60 0.20 0.20 0.40 0.80 1.00 0.40 0.40 0.90 0.30 0.70 

All real estate loans ............................................... $3,274.3 $87.6 $570.1 $562.9 $2,053.8 $735.1 $740.0 $617.7 $323.9 $232.9 $624.8 

Construction and development ........................... 285.4 8.6 74.9 67.2 134.8 33.7 88.3 62.8 25.2 38.8 36.7 

Commercial real estate ...................................... 699.5 24.6 201.9 169.3 303.6 140.3 166.7 153.4 68.6 73.2 97.3 

Multifamily residential real estate ....................... 156.7 2.1 25.9 39.5 89.2 40.2 19.1 28.4 7.9 6.5 54.6 

Home equity loans .............................................. 376.6 2.9 32.9 41.3 299.5 79.9 90.4 97.1 52.8 15.2 41.2 

Other 1-4 family residential ................................ 1,673.4 39.4 215.2 239.5 1,179.4 406.5 367.2 265.4 155.4 87.9 390.9 

Commercial and industrial loans ........................... 910.2 20.2 106.1 117.5 666.3 284.2 191.4 217.6 73.8 60.0 83.2 

Loans to individuals ............................................... 831.7 13.5 57.0 89.0 672.2 320.2 136.9 124.3 89.6 39.5 121.3 

Credit card loans ................................................ 314.0 0.3 6.3 29.4 278.0 136.9 24.4 23.1 50.4 7.1 72.0 

Other loans to individuals ................................... 517.7 13.2 50.7 59.6 394.2 183.3 112.4 101.2 39.1 32.4 49.3 

All other loans and leases (including farm) ........... 535.2 12.9 29.2 37.3 455.9 204.4 107.9 144.5 44.1 14.0 20.3 

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

Memo: Other Real Estate Owned (in millions) 

5,551.4 134.2 762.4 806.6 3,848.1 1,544.0 1,176.1 1,104.1 531.3 346.3 849.6 

All other real estate owned .................................... 5,263.1 353.3 1,403.9 927.3 2,578.7 655.2 1,039.6 1,414.5 583.9 910.1 659.8 

Construction and development ........................... 607.1 43.7 221.4 172.5 169.4 27.8 127.6 148.3 72.1 185.6 45.6 

Commercial real estate ...................................... 1,812.7 135.6 652.4 378.9 645.9 190.1 411.8 378.8 238.1 371.7 222.3 

Multifamily residential real estate ....................... 124.3 11.1 42.7 45.6 24.9 8.2 17.9 44.9 5.7 38.4 9.1 

1-4 family residential .......................................... 2,510.6 133.5 432.6 325.6 1,618.8 329.8 466.4 825.6 243.7 282.6 362.6 

Farmland ............................................................ 115.7 29.5 56.6 8.2 21.4 2.0 17.8 17.5 26.4 32.9 19.1 

* See Table IV-A (page 9) for explanations.
 

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

ALL FDIC-INSURED INSTITUTIONS 11 FIRST QUARTER 2004 
 

 

 

 

FDIC Quarterly Banking Profile 

Insurance Fund Indicators 

� BIF Reserve Ratio Falls 1 Basis Point to 1.31 Percent 

� SAIF Reserve Ratio Rises to 1.39 Percent 

� Three Insured Institutions Fail During Quarter 

Total assets of the nation’s 9,130 FDIC-insured institutions increased by $301.6 billion (2.9 percent) from 

December 31 to March 31. Deposits, which increased by 

$173 billion, funded about 57 percent of this growth. 

Deposits in domestic offices grew by $134 billion (2.6 

percent) while deposits in foreign offices increased by $39 

billion (5.2 percent). During this period, deposits insured 

by the FDIC increased by 1.5 percent ($50 billion) to 

$3.5 trillion. This was the largest quarterly rise since the 

first quarter of 2002, when total insured deposits 

increased by 3.0 percent ($96 billion). Insured deposits 

increased at 5,439 institutions, remained unchanged at 60 

institutions, and decreased at 3,589 institutions. The 

combined balances of the Bank Insurance Fund (BIF) and 

the Savings Association Insurance Fund (SAIF) increased 

by 1.2 percent during the quarter, ending at $46.6 billion 

(unaudited). The combined BIF and SAIF reserve ratio 

(fund balances as a percent of insured deposits) for all 

insured institutions equaled 1.33 percent on March 31, 

2004, unchanged from the previous quarter. 

Deposits insured by the BIF grew by $53 billion (2 percent) during the first quarter of 2004, significantly more 

than the $30 billion increase for all 2003. Sweeps of brokerage originated cash management funds accounted for 

roughly $7.5 billion of the first quarter increase in BIF 

insured deposits. Deposits insured by the SAIF shrank by 

0.4 percent ($3.2 billion) to $894 billion, following a 

fourth quarter increase of 2.8 percent. 

The Bank Insurance Fund (BIF) grew by 1.1 percent 

($382 million) during the first three months of 2004, 

ending the quarter with a balance of $34.2 billion (unaudited). On March 31, 2004 the BIF reserve ratio was 

1.31 percent, one basis point lower than the previous 

quarter. Insured deposit growth attributable to brokerage 

account sweeps accounted for roughly 38 percent of the 

BIF reserve ratio’s one basis point decline. Two BIF 

member commercial banks with assets of $104 million 

failed during the first quarter. The losses to the BIF for 

these two failures were estimated at $0.3 million. 

The Savings Association Insurance Fund (SAIF) grew by 

1.3 percent to $12 .4 billion (unaudited). The SAIF 

reserve ratio increased three basis points to 1.39 percent. 

One small SAIF member institution with assets of $15 

million failed during the first quarter. Losses to the SAIF 

were estimated at $0.7 million when this institution 

failed. 

Sweeps of brokerage originated cash management funds 

into insured deposit accounts increased to $97 billion, a 

new high. The BIF insured $88 billion (91 percent) and 

the SAIF insured $9 billion. These deposits have had the 

cumulative effect of reducing the BIF reserve ratio by 

roughly 4.6 basis points and the SAIF reserve ratio by 1.4 

basis points. 

Changes in Insurance Fund Balances 

(dollar figures in millions) Bank Insurance Fund 

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

2004 2003 2003 2003 2003 2002 2002 

Savings Association Insurance Fund 

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

2004 2003 2003 2003 2003 2002 2002 

Beginning Fund Balance $33,782 $33,462 $32,800 $32,382 $32,050 $31,383 $31,187 

Unrealized Gain (Loss) on 

Available-For-Sale Securities 175 –106 –45 38 103 –72 433 

Provision for Insurance Losses –37 –246 –543 –133 –6 –497 447 

All Other Income, Net of Expenses 170 180 164 247 223 242 210 

Total Fund Balance Change 382 320 662 418 332 667 196 

Ending Fund Balance $34,164 $33,782 $33,462 $32,800 $32,382 $32,050 $31,383 

$12,240 $12,186 $12,083 $11,906 $11,747 $11,586 $11,323 

59 -37 -16 13 33 -26 147 

1 10 -26 -45 -21 -70 -4 

96 101 93 119 105 117 112 

154 54 103 177 159 161 263 

$12,394 $12,240 $12,186 $12,083 $11,906 $11,747 $11,586 

FIRST QUARTER 2004 12 ALL FDIC-INSURED INSTITUTIONS 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FDIC Quarterly Banking Profile 

TABLE I-B. Selected Insurance Fund Indicators* 

(dollar figures in millions) 

Bank Insurance Fund 

Preliminary 

1st Quarter 

2004 

4th Quarter 

2003 

1st Quarter 

2003 

%Change 

03:1-04:1 

Reserve ratio (%)................................................................ ... 1.31 1.32 1.27 3.0 

Fund Balance .................................................................... ... $34,164 $33,782 $32,382 5.5 

Estimated insured deposits ................................................... 2,607,274 2,554,125 2,546,146 2.4 

SAIF-member Oakars........................................................ ... 102,523 100,898 97,574 5.1 

BIF-members ................................................................... 2,504,752 2,453,227 2,448,573 2.3 

Assessment base ............................................................... 4,252,092 4,140,560 3,959,658 7.4 

SAIF-member Oakars........................................................ 105,791 103,567 99,891 5.9 

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

Savings Association Insurance Fund 

4,146,301 4,036,992 3,859,767 7.4 

Reserve ratio (%) ................................................................ 1.39 1.36 1.37 1.1 

Fund Balance .................................................................... $12,394 $12,240 $11,906 4.1 

Estimated insured deposits ................................................... 893,755 897,006 867,848 3.0 

BIF-member Oakars ......................................................... 399,219 406,723 385,307 3.6 

SAIF-member Sassers ...................................................... 95,280 94,710 92,520 3.0 

Other SAIF members ........................................................ 399,257 395,573 390,021 2.4 

Assessment base ............................................................... 1,055,944 1,044,059 1,015,854 3.9 

BIF-member Oakars ......................................................... 403,979 409,433 389,823 3.6 

SAIF-member Sassers ...................................................... 120,998 120,120 114,114 6.0 

Other SAIF members ........................................................ 530,968 514,506 511,917 3.7 

Insurance Fund Reserve Ratios* Fund Balances and Insured Deposits* 

Percent of Insured Deposits ($Millions) 

BIF BIF-Insured SAIF SAIF-Insured 1.43 1.42 BIF SAIF Balance Deposits Balance Deposits

1.40 12/98 29,612 2,134,425 9,840 716,029 1.39 1.39 1.39 1.38 1.371.37 1.36 1.36 

1.35 

Target 

Ratio 1.26 1.25 1.25 1.23 

1.25 

1.37 1.37 

1.27 1.27 

1.29 

1.32 1.32 

1.39 

1.36 

1.31 

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

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

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

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

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

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

12/02 32,050 2,524,474 11,747 859,205 

3/03 32,382 2,546,146 11,906 867,848 

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

9/03 33,462 2,542,822 12,186 872,121 

12/03 33,782 2,554,125 12,240 897,006 

3/04 34,164 2,607,274 12,394 893,755 

12/98 12/99 12/00 12/01 3/02 6/02 9/02 12/02 3/03 6/03 9/03 12/03 3/04 

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

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

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

include U.S. branches of foreign banks. 

TABLE II-B. Closed/Assisted Institutions 

(dollar figures in millions) 

2004** 2003** 2003 2002 2001 2000 1999 1998 

BIF Members 

Number of institutions ........................ ... 2 1 3 10 3 6 7 3 

Total assets ........................................ $104 $1,052 $1,097 $2,508 $54 $378 $1,490 $371 

SAIF Members 

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

Total assets .................................. $15 $0 $0 $50 $2,200 $30 $71 $0 

** Through March 31 

ALL FDIC-INSURED INSTITUTIONS 13 FIRST QUARTER 2004 
FDIC Quarterly Banking Profile 

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

(dollar figures in millions) 2004** 2003** 2003 2002 2001 2000 1999 

BIF Members 

Number of institutions reporting ........................... 7,935 8,098 7,996 8,125 8,327 8,572 8,835 

BIF-member Oakars ....................................... 765 807 764 801 766 743 744 

Other BIF-members ....................................... 7,170 7,291 7,233 7,324 7,561 7,829 8,091 

Total assets ................................................... $8,138,174 $7,464,370 $7,897,859 $7,335,995 $6,857,472 $6,510,744 $5,980,127 

Total deposits ................................................ 5,366,041 4,949,191 5,210,288 4,854,908 4,567,604 4,337,661 3,987,336 

Net income ...................................................... 28,538 25,967 106,281 92,497 76,500 73,430 73,952 

Return on assets (%) ....................................... 1.42 1.40 1.40 1.32 1.14 1.18 1.29 

Return on equity (%) .......................................... 15.50 15.25 15.22 14.32 12.91 13.86 15.11 

Noncurrent assets plus OREO to assets (%) ......... 0.68 0.88 0.76 0.91 0.89 0.72 0.62 

Number of problem institutions ........................... 103 111 102 116 90 74 66 

Assets of problem institutions .............................. $29,036 $31,963 $28,812 $32,176 $31,881 $10,787 $4,450 

Number of failed/assisted institutions .................. 2 1 3 10 3 6 7 

Assets of failed/assisted institutions ..................... $104 $1,052 $1,097 $2,508 $54 $378 $1,490 

SAIF Members 

Number of institutions reporting ........................... 1,181 1,216 1,186 1,229 1,287 1,332 1,387 

SAIF-member Oakars .................................... 143 135 143 133 130 122 123 

Other SAIF-members .................................... 1,038 1,081 1,043 1,096 1,157 1,210 1,264 

Total assets ................................................... $1,238,904 $1,141,347 $1,177,465 $1,099,966 $1,011,736 $952,154 $903,532 

Total deposits ................................................ 761,026 729,448 744,022 713,599 621,824 577,100 550,703 

Net income ...................................................... 3,320 3,548 14,315 12,462 10,623 8,071 8,450 

Return on assets (%) ....................................... 1.11 1.27 1.25 1.17 1.11 0.89 0.99 

Return on equity (%) .......................................... 10.99 13.86 13.85 12.79 13.46 11.12 11.97 

Noncurrent assets plus OREO to assets (%) ......... 0.64 0.76 0.69 0.79 0.75 0.65 0.64 

Number of problem institutions ........................... 11 18 14 20 24 20 13 

Assets of problem institutions .............................. $836 $2,718 $1,105 $6,751 $7,923 $13,053 $5,524 

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

Assets of failed/assisted institutions ..................... $15 $0 $0 $50 $2,200 $30 $71 

* Excludes insured branches of foreign banks (IBAs). 

** Through March 31, ratios annualized where appropriate. 

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

(dollar figures in millions) 

March 31, 2004 

Commercial Banks and Savings Institutions 

Number of 

Institutions 

Total 

Assets 

Domestic 

Depostis* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks ..................... 7,712 7,817,696 4,400,356 2,340,537 410,418 2,750,955 

BIF-member ............................................. 7,601 7,648,932 4,289,977 2,309,473 355,596 2,665,069 

SAIF-member ............................................. 111 168,763 110,379 31,065 54,822 85,886 

FDIC-Supervised ....................................... 4,810 1,429,459 1,056,235 653,512 90,304 743,816 

OCC-Supervised ....................................... 1,969 4,436,042 2,382,362 1,257,458 233,638 1,491,096 

Federal Reserve-Supervised ........................ 933 1,952,195 961,760 429,567 86,476 516,043 

FDIC-Insured Savings Institutions ..................... 1,404 1,559,216 946,888 265,805 483,337 749,142 

OTS-Supervised Savings Institutions .................. 923 1,194,450 694,455 133,953 411,972 545,926 

BIF-member ............................................. 42 195,817 94,083 65,673 12,715 78,388 

SAIF-member ............................................. 881 998,633 600,372 68,281 399,257 467,537 

FDIC-Supervised State Savings Banks ............... 481 364,766 252,433 131,851 71,365 203,217 

BIF-member ............................................. 292 293,409 202,724 128,674 30,907 159,581 

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

Total Commercial Banks and 

189 71,356 49,709 3,177 40,458 43,635 

Savings Institutions .................................... 9,116 9,376,912 5,347,244 2,606,342 893,755 3,500,098 

BIF-member ................................................ 7,935 8,138,159 4,586,784 2,503,820 399,219 2,903,039 

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

Other FDIC-Insured Institutions 

1,181 1,238,753 760,460 102,523 494,536 597,059 

U.S. Branches of Foreign Banks ........................ 14 9,907 4,701 932 0 932 

Total FDIC-Insured Institutions ........................ 9,130 9,386,819 5,351,945 2,607,274 893,755 3,501,030 

* Excludes $780 billion in foreign office deposits, which are uninsured. 

FIRST QUARTER 2004 14 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE V-B. Assessment Base Distribution and Rate Schedule 

BIF Assessment Base Distribution
 

Assessable Deposits in Billions as of March 31, 2004
 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2004
 

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

7,307 

$4,104 

60 

$9 

2 

$0 

92.0% 

96.4% 

0.8% 

0.2% 

0.0% 

0.0% 

465 5.9% 

$119 2.9% 

9 0.1% 

$1 0.0% 

0 0.0% 

$0 0.0% 

78 

$18 

8 

$1 

6 

$0 

1.0%

0.5% 

0.1%

0.0% 

0.1%

0.0% 

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

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

by on-site examinations. 

SAIF Assessment Base Distribution
 

Assessable Deposits in Billions as of March 31, 2004
 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2004
 

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

1,097 

$1,030 

4 

$1 

0 

$0 

92.9% 

97.5% 

0.3% 

0.1% 

0.0% 

0.0% 

66 5.6% 

$24 2.3% 

2 0.2% 

$0 0.0% 

0 0.0% 

$0 0.0% 

12 

$1 

0 

$0 

0 

$0 

1.0%

0.1% 

0.0%

0.0% 

0.0%

0.0% 

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

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

by on-site examinations. 

Assessment Rate Schedule
 

First Semiannual 2004 Assessment Period
 

Cents per $100 of Assessable Deposits
 

Supervisory Risk Subgroup 

Capital Group A B C 

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

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

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

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

Currently, the rate schedules are identical. 

ALL FDIC-INSURED INSTITUTIONS 15 FIRST QUARTER 2004 
FDIC Quarterly Banking Profile 

Number of FDIC-Insured “Problem” Institutions, 1995–2004 

Number of Institutions 

193 

117 

92 84 79 

94 

114 

136 129 125 116 116 

0 

50 

100 

150 

200 

SAIF Members 

BIF Members 

114 

12/95 12/96 12/97 12/98 12/99 12/00 12/01 12/02 3/03 6/03 9/03 12/03 3/04 

SAIF Members 42 31 19 16 13 20 24 20 18 14 13 14 11
 

BIF Members 151 86 73 68 66 74 90 116 111 111 103 102 103
 

Assets of FDIC-Insured “Problem” Institutions, 1995–2004 

$ Billions 

SAIF Members 

BIF Members 

$31 

$12 

$6 $11 $10 

$24 

$40 $39 $35 $32 $30 $30 

0 

20 

40 

60 

80 

$30 

12/95 12/96 12/97 12/98 12/99 12/00 12/01 12/02 3/03 6/03 9/03 12/03 3/04 

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

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

FIRST QUARTER 2004 16 ALL FDIC-INSURED INSTITUTIONS
 
 

FDIC Quarterly Banking Profile 

Notes To Users 

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

Corporation (FDIC). These notes are an integral part of this publication and provide information regarding the comparability of 

source data and reporting differences over time. 

Tables I-A through V-A. 

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

FDIC Quarterly Banking Profile is aggregated for all FDIC-insured 

Institutions, both commercial banks and savings institutions. 

Some tables are arrayed by groups of FDIC-insured institutions 

based on predominant types of asset concentration, while other 

tables aggregate institutions by asset size and geographic region. 

Quarterly and full-year data are provided for selected indicators, 

including aggregate condition and income data, performance 

ratios, condition ratios and structural changes, as well as past due, 

noncurrent and charge-off information for loans outstanding and 

other assets. 

Tables I-B through V-B. 

A separate set of tables(Tables I-B through V-B) provides quarterly 

and annual data related to the bank (BIF) and savings association 

(SAIF) insurance funds, closed/assisted institutions, and assessments. 

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

membership. BIF-member institutions may acquire SAIF-insured 

deposits, resulting in institutions with some deposits covered by 

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

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

Depository institutions that are not insured by the FDIC through 

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

Banking Profile. U.S. branches of institutions headquartered in foreign countries and non-deposit trust companies are not included 

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 (beginning-of-period 

amount plus end-of-period amount plus any interim periods, divided by the total number of periods). For “pooling-of-interest” mergers, the assets of the acquired institution(s) are included in average 

assets since the year-to-date income includes the results of all 

merged institutions. No adjustments are made for “purchase 

accounting” mergers. Growth rates represent the percentage 

change over a 12-month period in totals for institutions in the 

base period to totals for institutions in the current period. 

All data are collected and presented based on the location of each 

reporting institution’s main office. Reported data may include 

assets and liabilities located outside of the reporting institution’s 

home state. 

ACCOUNTING CHANGES 

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

Interpretation No. 45, Guarantor’s Accounting and Disclosure 

Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others. This interpretation clarifies that a guarantor is 

required to recognize, at the inception of a guarantee (financial 

standby letters of credit, performance standby letters of credit), a 

liability for the fair value of the obligation undertaken in issuing 

the guarantee. Banks apply the initial recognition and measurement provisions of Interpretation No. 45 on a prospective basis to 

guarantees issued or modified after December 31, 2002, irrespective of the bank’s fiscal year end. A bank’s previous accounting for 

guarantees issued prior to January 1, 2003, is not revised. 

FASB Interpretation No. 46 — The FASB issued Interpretation No. 

46, Consolidation of Variable Interest Entities, in January 2003 and 

revised it in December 2003. Generally, banks with variable 

interests in variable interest entities created after December 31, 

2003, must consolidate them. The timing of consolidation varies 

with certain situations with application as late as 2005 for public 

companies. The assets and liabilities of a consolidated variable 

interest entity are reported on a line-by-line basis according to the 

asset and liability categories shown on the bank’s balance sheet, as 

well as related income items. Most small banks are unlikely to 

have any “variable interests” in variable interest entities. 

Goodwill and intangible assets — FAS 141 terminates the use of 

pooling-of-interest accounting for business combinations after 

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

goodwill are amortized each quarter. In addition companies are 

required to test for impairment of both goodwill and other intangibles once each fiscal year. The year 2002, the first fiscal year 

affected by this accounting change, has been designated a transitional year and the amount of initial impairments are to be recorded as extraordinary losses on a “net of tax” basis (and not as 

noninterest expense). Subsequent annual review of intangibles 

and goodwill impairment may require additional noninterest 

expense recognition. FASB Statement No. 147 clarifies that 

acquisitions of financial institutions (except transactions between 

two or more mutual enterprises), including branch acquisitions 

that meet the definition of a business combination, should be 

accounted for by the purchase method under FASB Statement 

No. 141. This accounting standard includes transition provisions 

that apply to unidentifiable intangible assets previously accounted 

for in accordance with FASB Statement No. 72. If the transaction 

(such as a branch acquisition) in which an unidentifiable intangible asset arose does not meet the definition of a business combination, this intangible asset is not be reported as “Goodwill” on the 

Call Report balance sheet. Rather, this unidentifiable intangible 

asset is reported as “Other intangible assets,” and must continue to 

be amortized and the amortization expense should be reported in 

the Call Report income statement. 

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

standards. Derivatives were previously off-balance sheet items, but 

beginning in 2001 all banks must recognize derivatives as 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 

ALL FDIC-INSURED INSTITUTIONS 17 FIRST QUARTER 2004 
FDIC Quarterly Banking Profile 

in a net gain or loss on the income statement. Accumulated net 

gains (losses) on cash flow hedges are recorded on the balance 

sheet as “accumulated other comprehensive income” and the periodic change in the accumulated net gains (losses) for cash flow 

hedges is reflected directly in equity as the value of the derivative 

changes. 

Initial transition adjustments upon adoption of FAS 133 are 

reported as adjustments to net income in the income statement as 

extraordinary items. Upon implementing FAS 133, a bank may 

transfer any debt security categorized as held-to-maturity into the 

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

gains (losses) on transferred held-to-maturity debt securities on the 

date of initial application must be reflected as an adjustment to net 

income if transferred to the trading category or an adjustment to 

equity if transferred to the available-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 riskbased capital category and supervisory risk subgroup: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) Capital * Capital * Leverage Equity 

Well-capitalized >10 and >6 and >5 — 

Adequately 

capitalized >8 and >4 and >4 — 

Undercapitalized >6 and >3 and >3 — 

Significantly 

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

Critically 

undercapitalized — — — <2 

*As a percentage of risk-weighted assets. 

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

rules combine the three lowest capital rating categories into a single “undercapitalized” group. Supervisory risk subgroup assignments are based on supervisory ratings. Generally, the strongest 

institutions (those rated 1 or 2) are in subgroup A, those rated 3 

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

Assets securitized and sold — total outstanding principal balance of 

assets sold and securitized with servicing retained or other sellerprovided credit enhancements. 

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

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

institutions, it represents the adjusted attributable amount 

acquired from BIF members. 

Construction and development loans — includes loans for all property 

types under construction, as well as loans for land acquisition and 

development. 

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

amount of eligible intangibles (including servicing rights) included 

in core capital is limited in accordance with supervisory capital 

regulations. 

Cost of funding earning assets — total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets. 

Derivatives (notional amount) — represents the sum of the following: 

interest-rate contracts (defined as the “notional” value of interestrate swap, futures, forward and option contracts), foreignexchange-rate contracts, commodity contracts and equity 

contracts (defined similarly to interest-rate contracts). 

Futures and forward contracts — a contract in which the buyer agrees to purchase and the seller agrees to sell, at a specified

future date, a specific quantity of an underlying variable or

index at a specified price or yield. These contracts exist for a

variety of variables or indices, (traditional agricultural or physical commodities, as well as currencies and interest rates).

Futures contracts are standardized and are traded on organized

exchanges which set limits on counterparty credit exposure.

Forward contracts do not have standardized terms and are 

traded over the counter. 

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

amount of an underlying variable or index at a stated price

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

return for compensation (such as a fee or premium). The seller is obligated to purchase or sell the variable or index at the

discretion of the buyer of the contract. 

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

a specified period. The cash flows of a swap are either fixed,

or determined for each settlement date by multiplying the

quantity (notional principal) of the underlying variable or

index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged. 

Domestic deposits to total assets — total domestic office deposits as a 

percent of total assets on a consolidated basis.
 

Earning assets — all loans and other investments that earn interest
 

or dividend income.
 

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

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

value indicates greater efficiency.
 

Estimated insured deposits — in general, insured deposits are total
 

domestic deposits minus estimated uninsured deposits. While the
 

uninsured estimate is calculated as the sum of the excess amounts
 

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

estimated uninsured deposits was adjusted to consider a financial
 

institution’s better estimate. Since March 31, 2002, all institutions
 

provide a reasonable estimate of uninsured deposits from their systems and records.
 

Failed/assisted institutions — an institution fails when regulators
 

take control of the institution, placing the assets and liabilities
 

into a bridge bank, conservatorship, receivership, or another
 

healthy institution. This action may require the FDIC to provide
 

funds to cover losses. An institution is defined as “assisted” when
 

the institution remains open and receives some insurance funds in
 

FIRST QUARTER 2004 18 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

order to continue operating.
 

FHLB advances — all borrowings by FDIC insured institutions
 

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

by Call Report filers and by TFR filers.
 

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

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

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

loans secured by real estate.
 

Loans to individuals — includes outstanding credit card balances 

and other secured and unsecured consumer loans.
 

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

remaining maturities or repricing intervals of over five years.
 

Mortgage-backed securities — certificates of participation in pools
 

of residential mortgages and collateralized mortgage obligations
 

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

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

from balance sheet because of uncollectibility), less amounts
 

recovered on loans and leases previously charged off.
 

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

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

that is tax exempt.
 

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

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

total assets on a consolidated basis.
 

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

and extraordinary items. Income taxes subtracted from operating
 

income have been adjusted to exclude the portion applicable to
 

securities gains (or losses).
 

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

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

status. 


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

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

Number of institutions reporting — the number of institutions that 

actually filed a financial report. 

Other borrowed funds — federal funds purchased, securities sold 

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

Treasury, FHLB advances, other borrowed money, mortgage 

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

Other real estate owned — primarily foreclosed property. Direct 

and indirect investments in real estate ventures are excluded. 

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

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

estate owned are reported gross of valuation allowances. 

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

compared to the same period a year earlier. 

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

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

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

institutions are those institutions with financial, operational, or 

managerial weaknesses that threaten their continued financial 

viability. Depending upon the degree of risk and supervisory 

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

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

FDIC is the primary federal regulator, FDIC composite ratings 

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

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

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

2003 reserves for losses did not include the allocated transfer risk 

reserve, which was netted from loans and leases. 

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

restructured loans and leases that are not in compliance with the 

modified terms. 

Retained earnings — net income less cash dividends on common 

and preferred stock for the reporting period.
 

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

assets. The basic yardstick of bank profitability.
 

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

equity capital.
 

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

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

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

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

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

“Oakar” institutions, it represents the adjusted attributable
 

amount acquired from SAIF members.
 

Securities — excludes securities held in trading accounts. Banks’
 

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

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

(market) value.
 

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

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

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

Troubled real estate asset rate — noncurrent real estate loans plus
 

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

other real estate owned.
 

Trust assets — market value, or other reasonably available value
 

of fiduciary and related assets, to include marketable securities,
 

and other financial and physical assets. Common physical
 

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

are not included in the assets of the financial institution.
 

Unearned income & contra accounts — unearned income for Call 

Report filers only. 

Unused loan commitments — includes credit card lines, home 

equity lines, commitments to make loans for construction, loans 

secured by commercial real estate, and unused commitments to 

originate or purchase loans. 

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

foreign-office deposits, federal funds purchased, securities sold 

under agreements to repurchase, and other borrowings. 

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

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

ALL FDIC-INSURED INSTITUTIONS 19 FIRST QUARTER 2004 
The FDIC Quarterly Banking Profile is published quarterly by the Division of Insurance and Research of the 

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

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

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

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

System on this web site. 

Chairman Donald E. Powell 

Director, Division of Insurance Arthur J. Murton 

and Research 

Media Inquiries (202) 898-6993 

Authors Don Inscoe 

Associate Director, Statistics Branch 

(202) 898-3940 

Kevin Brown 

(202) 898-6817 

Ross Waldrop 

(202) 898-3951