Fourth Quarter, 1994 

FDIC 

Division of Research 

& Statistics 

Don Inscoe 

Associate Director, 

Statistics Branch 

(202) 898-3940 

Tim Critchfield 

(202) 898-8557 

Jim McFadyen 

(202) 898-7027 

Ross Waldrop 

(202) 898-3951 

The FDIC 

u art er 1 y: ______ R_lc_k_l T_;lg:..._e rt_He_lf_er..:...., _C_ha_lr_m_an 

anking Rofile 

COMMERCIAL BANKING PERFORMANCE-FOURTH QUARTER, 1994 

• Commercial Banks Earn $10.7 Billion In Fourth Quarter

• Full-Year Earnings Of $44.7 Billion Set New Record

• Loan Growth Continues To Support Strong Industry Performance

• Assets Of Commercial Banks Pass $4 Trillion Mark

.__ ____ -.a._,�,,.-------------------------------' 

Commercial banks reported $10.7 billion in fourthquarter earnings, lifting their net income for the 

year to a record $44.7 billion. Net interest income 

was $1.9 billion higher in the fourth quarter than 

a year earlier, while loan-loss provisions were 

$1.1 billion lower. However, these year-to-year 

improvements were outweighed by a $1.7-billion 

increase in overhead expense, a $1.1-billion 

decline in after-tax proceeds from securities sales 

and extraordinary items, and a $342-million decline in noninterest income. As a result, fourthquarter earnings were $55 million lower than a 

year earlier. The average return on assets (ROA) 

in the fourth quarter was 1.08 percent, down from 

1.18 percent a year ago. 

For the full year, industry earnings of $44.7 billion 

were $1.6 billion (3. 7 percent) above 1993's $43.1 

billion, even though securities sales and extraordinary transactions produced $4.7 billion less after 

taxes than in 1993. Net operating (core) earnings, 

which exclude these nonrecurring items, were 

$6.3 billion (16.2 percent) higher than in 1993. 

Banks registered $570 million in losses on securities sales and $15 million in extraordinary losses 

in 1994, compared to $3.1 billion in securities 

gains and $2.1 billion in extraordinary gains in 

1993. This marks the first year since 1982 that 

banks have reported a combined net loss on securities and extraordinary transactions. The main 

sources of earnings improvement in 1994 were 

higher net interest income (up $7.3 billion), and 

lower loan-loss provisioning (down $5.9 billion}. 

The increase in net interest income was attributable to strong growth in interest-bearing assets, 

especially loans, as net interest margins were 

slightly lower than in 1993. The $10.9 billion banks 

set aside in provisions for loan losses in 1994 was 

the smallest annual total since 1983. Noninterest 

income grew by only $1.3 billion, held down by a 

$2.9-billion decline in trading account and foreignexchange gains and fees. 

S Billion 

Quarterly Net Income 

1990 -1994 

14 .------,-------,----,-----,------, 

■ Securities and Other Gains, Net 

12 □ I Net Operating Income 

11.8 

10 

6.2 

3.6 

(2) '-L.--'---'---�'---"---'--_,___,__--'---L.......L--'--'-'---'---'-----'---'-L--'----'-__,__, 

123 4 123 4 123 4 123 4 1 2 3 4

1990 1991 1992 1993 1994 

Slightly more than half (54.4 percent) of the 10,450 

commercial banks reporting year-end results registered higher earnings than in 1993. Fewer than 

one in 25 banks was unprofitable in 1994. For the 

third consecutive year, almost two-thirds of all 

commercial banks posted average returns on assets of one percent or greater. Banks paid dividends to shareholders totaling $28.1 billion in 

1994, an increase of over $6 billion (27 .5 percent) 

from 1993. Dividend payments were equal to 62.9 

percent of banks' net income, the highest payout 

level since 1991. Retained earnings were $16.6 

billion, a decline of $4.4 billion (21.1 percent) from 

1993. 

Average net interest margins declined slightly in 

the fourth quarter, to 4.42 percent from 4.46 percent in the previous quarter and 4.43 percent in 

the fourth quarter of 1993. Margin strength was 

evidenced by the smallest and largest banks. 

Banks with assets of $1 billion or less and banks 

with assets greater than $10 billion experienced 

no decline in their average margins from thirdquarter levels, and had higher margins than a year 

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

Office of Corporate Communications, 550 17th Street, NW, Washington, DC 20429; telephone (202) 898-6996. 

For assistance please email: Section508@fdic.gov
. 

ago. Fourth-quarter margins at banks with assets be­ Noncurrent Loan Rates At Year-End 

1984 -1994 tween $1 billion and $1 Obillion were lower than in either 

the third quarter of 1994 or the fourth quarter of 1993. The 

increase in the share of loans in the industry's total assets 

helped lift average asset yields, while higher proportions 

of nondeposit liabilities and foreign-office deposits in 

banks' funding contributed to the larger increase in average funding costs as short-term interest rates rose. 

Quarterly Net Interest Margins 

1990 -1994 

Net Interest Margin (%) 

5.0 Assets <$100 Million 4.90%

11 ...... l,)/-i\L.----~ 

l/-i...--- I\l/

4.5 

/ i..--I-- - - - - .. ·-.-- - - - -

...•• ... ... ... -

... ... \ V ..· -....... .

.. ..·

... Assets >$100 Million 4.37% 

4.0 - - - -~ - - - - - - - - - - - - - ... ... ...... 

3.5 

12341234123412341234 

1990 1991 1992 1993 1994 

Commercial bank assets grew by $87.8 billion in the 

fourth quarter, to $4.01 trillic·, at year-end. The 8.2-percent asset growth rate registered for full-year 1994 is 

misleading, however, because new accounting rules 

changed the reporting of assets in 1994. At the beginning 

of the year, a change in the accounting treatment of 

assets in trading accounts (FASB Interpretation # 39) 

caused a one-time increase in assets of approximately 

$100 billion. Another accounting change affecting the 

reporting of banks' securities and equity capital (FASB 

Statement 115) reduced reported assets by $11.5 billion 

and equity capital by $7.9 billion at the end of 1994 (See 

Notes to Users, p. 21 ). Without these changes, asset 

growth in 1994 would have been slightly below 6 percent. 

In contrast, the reported growth in loans is actual; the 9.7 

percent increase in 1994 was the largest annual growth 

rate since loans grew 14.5 percent in 1984. All major loan 

categories except loans for real estate construction and 

development increased in 1994. Credit card loans had 

the most rapid expansion, increasing by over 21 percent. 

The largest dollar increases came in real estate loans, 

which grew by $74.7 billion (with 1-4 family residential 

loans growing by $53.1 billion), loans to individuals, which 

increased by $68.1 billion, and commercial and industrial 

loans, which rose by $50.5 billion. The increase in commercial and industrial loans was the largest full-year 

increase since 1981. In contrast, banks' securities holdings registered their first year-to-year decline since 1985, 

falling by $13.6 billion. Most of the decrease ($11.5 billion, 

or 84.6 percent) was attributable to mark-to-market adjustments under new accounting rules that took effect in 

1994 (FASB Statement 115). 

% of Loans 

6,--------------------~ All Other•

~1········· . .. 5 . . .... . . C&I /,,, ••• 

"-.. ,.: ' .. 4 ---,. :

. / 

. 

. 

. . ..... 3 ·······•·- _.,,,_:--- ·-•• 

2 

i---~- ...... ~~ 

Total Loans ... ········-:_:_•.

1 • - ·/-.- • - • -.-.-.-.-. ·.-. •• -..... Consumer 

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 

"Includes loans to foreign governments, depository institutions and lease receivables. , .., 

Troubled asset levels continued to decline through the 

end of 1994. Noncurrent loans registered their fifteenth 

consecutive quarterly decline in the fourth quarter, falling 

by $2.7 billion. This brought the reduction for all of 1994 

to $12.1 billion (28.2 percent). The industry's inventory of 

other real estate owned (OREO) fell by $2.3 billion in the 

fourth quarter; the full-year net reduction in OREO was 

$6.7 billion. Together, these troubled assets totaled $40.3 

billion at the end of 1994, almost two-thirds (63.0 percent) 

below the peak level of $109.5 billion reached at midyear, 

1991. Banks charged-off $3.1 billion (net) in the fourth 

quarter, a decrease of 36.2 percent from the fourth quarter of 1993. Net loan charge-offs for the full year totaled 

$11.2 billion, a 35.9 percent drop from the previous year, 

and the lowest annual total since banks charged-off $10.8 

billion in 1984. Reserve levels fell for the fourth consecutive year, declining by $655 million in 1994. At the same 

time, the ratio of reserves to noncurrent loans, or "coverage ratio", rose to $1.69 in reserves for every dollar of 

noncurrent loans at year-end, the highest level registered 

in the thirteen years banks have reported noncurrent loan 

amounts. 

Annual Net Loan Charge-Off Rates 

1984 -1994 

% of Loans 

3.0 

2.5 

2.0 

1.5 

1.0 

0.5 

0 "'----'---"-

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 

'Includes loans to foreign governments, depository institutions and lease receivables. 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 Fourth Quarter 1994 
·

With troubled assets continuing to recede, with reserve 

coverage levels at all-time highs, and with more than 98 

percent of the industry well-capitalized according to regulatory capital standards, a number of banks sought to 

convert some of their reserves back into earnings, while 

some converted equity into dividends. In the fourth quarter, 803 banks reported $700 million in negative loan-l_oss 

provisions. For the full year, 749 banks reported negative 

loan-loss provisions totaling $912 million. Both groups 

had above-average coverage ratios of reserves to noncurrent loans. Of the 8,291 banks paying dividends to 

sharetl,olders in 1994, more than half (4,782 banks, or 

57.7 percent) reported higher dividend payments than in 

1993. There were 905 banks that paid more in dividends 

than they earned in 1994 (the difference being a net 

reduction in equity capital). Together, they paid $11.6 

billion in dividends, while posting aggregate earnings of 

only $8.3 billion, so their equity capital was reduced by 

more than $3.2 billion to support dividend payments. 

These institutions tended to have cai: ital levels above the 

industry average. 

The number of banks reporting financial results fell by 142 

institutions in the fourth quarter, from 10,592 to 10,450. 

There were 14 new banks chartered, and 160 banks 

absorbed through mergers or consolidations. No commercial banks failed in the fourth quarter. For all of 1994, 

the net reduction in commercial banks totaled 508 institutions. There were 50 new charters issued, and 550 

banks were absorbed by mergers or consolidations. 

Eleven banks failed in 1994, the lowest full-year total 

since 1981. The number and assets of "problem" banks 

continued to shrink. At year-end, there were 247 banks 

with combined assets of $33 billion on the FDIC's "Problem List", a net reduction of 46 banks and $3 billion in 

assets during the fourth quarter, and a net decline of 179 

banks and $209 billion in assets since the end of 1993. 

Structural Changes Among FDIC-Insured 

Commercial Banks, 1980 - 1994 

Number 

700 ,--- ---- ---------------, 

600 

500 New Charters 

400 

300 

200 

Failed Banks , 100 

.. ->··,· 

0 ~·--~~~~~~-~~~~~~-~~~~ ·so ·a1 ·a2 ·a3 ·a4 ·as ·a5 ·a7 ·as ·ae ·go ·91 ·92 ·93 ·94 

Commercial and Industrial Loan Growth Rates* 

December 31, 1993 - December 31 , 1994 

Midwest Central 

Hawaii 

10.1 

Pu

-

erto Rico 

19.5 

D Less than 0% 

D 0% to5% 

• Some growth rates have been adjusted to reflect significant interstate - 5% to10% 

- Greater than 10% migrations. See Notes to Users, p. 21 . 

FDIC Quarterly Banking Profile 

Fourth Quarter 1994 3 FDIC-Insured Commercial Banks 

550 
TABLE I-A. Selected Indicators, FDIC-Insured Commercial Banks 

1994 1993 1992 1991 1990 1989 1988 

Return on assets (%) .. ... ...... ............ ... ............. .......... 1.15 1.20 0.93 0.53 0.48 0.49 0.82 

Return on equtty (%) ... .. .............. ... ..... ... ..... .... ........ .. 14.63 15.35 12.98 7.94 7.45 7.71 13.19 

Core capital (leverage) ratio (%) ... ........ .... ................ 7.64 7.65 7 .20 6.48 6.17 6.11 6.16 

Noncurrent assets plus 

other real estate owned to assets (%) ..................... 1.01 1.61 2.54 3.02 2.94 2.30 2.14 

Net charge-offs to loans(%) .............................. ........ 0.50 0.85 1.27 1.59 1.43 1.16 1.00 

Asset grow1h rate(%) ............................... .... ........ .... . 8.22 5.72 2.19 1.21 2.73 5.38 4.36 

Net interest margin (%) .......................... .. ......... .. .... .. 4.36 4.40 4.41 4.11 3.94 4.02 4.02 

Net operating income grow1h (%) ..................... ......... 16.23 35.48 92.41 -0.63 2.53 -38.70 NIM 

Number of instttutions reporting .. .............. .. ... ........ ... 10,450 10,958 11,462 11,921 12,343 12,709 13,123 

Percentage of unprofttable institutions ............. ........ . 3 .79 4.86 6.85 11.60 13.44 12.50 14.68 

Number of problem institutions ........................... .. ..... 247 426 787 1,016 1,012 1,092 1,394 

Assets of problem institutions (in billions) ... ........ ...... $33 $242 $408 $528 $342 $188 $305 

Number of failed/assisted instttutions .................... .... 11 42 100 108 159 206 221 

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

(dollar figures in millions) Preliminary 

4th Quarter 3rd Quarter 4th Quarter 3⁄4Change 

1994 1994 1993 93:4-94:4 

Number of instttutions reporting .................. ........... .............. ... . 10,450 10,592 10,958 -4.6 

Total employees (full-time equivalent) .......................... .......... . 1,488,076 1,484,441 1,493,505 -0.4 

CONDITION DATA 

Total assets ......................................... ...... ............................ .. $4,010,664 $3,922,907 $3,706,189 8.2 

Loans secured by real estate ................. ... ....................... . 997,677 971 ,100 922,961 8.1 

Commercial & industrial loans.. .......... .. ............................ . 589,120 575,398 538,574 9.4 

Loans to individuals .......................................................... . 487,170 460,866 419,049 16.3 

Farm loans .................... .. ............................ .................. ... .. 39,172 41,123 37,133 5.5 

Other loans & leases ............................ ............................ . 251 ,388 238,276 238,765 5.3 

Less: Unearned income ...... .. ............ ............................ .. .. . 6,350 6,177 6,748 -5.9 

Total loans & leases ......... ..................... ....... ................... ... . 2,358,177 2,280,587 2,149,733 9.7 

Less: Reserve for losses ........................ ...... ................... ... . 52,101 52,444 52,756 -1.2 

Net loans & leases ........... ...... ... ......... ................................... . 2,306,076 2,228,142 2,096,978 10.0 

Securtties ..... ........................................... .................. .... ..... ... . 822,949 836,958 836,598 

Other real estate owned ... .. ...................... .................. .......... . 9,579 11 ,920 16,237 -41 .0 

Goodwill and other intangibles .................................. ........... . 23,986 22,514 18,027 33.1 

All other assets ....... ............... .............................................. . 848,074 823,374 738 ,349 

Total liabiltties and capttal.. ....................................... ....... .... ... . 4,010,664 3,922,907 3,706,189 8.2 

Noninterest-bearing deposits ................................................ . 572,293 543,053 572,099 0.0 

Interest-bearing deposits ........................... ......... .................. . 2,302,059 2,249,805 2,182,233 5.5 

Other borrowed funds ........... ............... .. ..... .......................... . 591 ,079 573,123 497,888 

Subordinated debt .... .......... ..................... ................ ............. . 40,747 38,601 37,372 9.0 

All other liabiltties .. ... ............. ................ .................... ........... . 192,300 206,534 120,074 

Equity capital... ................... .. .............. .............. ................... . 312,187 311,791 296,523 

Loans and leases 30-89 days past due........ ...... ..................... 28,105 26,015 28,743 -2.2 

Noncurrent loans and leases.. ...................... ... .................. .... .. 30,738 33,400 42,819 -28.2 

Restructured loans and leases.......... ...................................... 6,456 6,368 10,177 -36.6 

Direct and indirect investments in real estate........ .................. 610 604 547 11 .6 

1-4 Family residential mortgages..... .. ....... .................. ............ 568,939 550,008 515,866 10.3 

Mortgage-backed securities... ...................... .. ......................... 327,181 330,951 336,784 

Earning assets..................................... .. ............. ..................... 3,470,028 3,388,646 3,290,827 5.5 

Long-term assets (5+ years). .......... ............... ..... .. ............ ...... 544,818 556,730 527,863 3.2 

Volatile liabilities.................................. .................................... 1,174,227 1,121 ,357 NIM 

Foreign office deposits........... ................. ............................... 431 ,915 403,247 329,997 30.9 

Unused loan commitments.......... ............. .............. .... .. ..... ...... 1,775,302 1,690,314 1,457,538 21 .8 

Off-balance-sheet derivatives............................ ......... ............ 15,773,534 15,768,156 11 ,878,059 32.8 

Preliminary Preliminary 

Full Year Full Year 4th Quarter 4th Quarter 3⁄4Change 

INCOME DATA 1994 1993 3⁄4Change 1994 1993 93:4-94:4 

Total interest income........................................ ..... $257,843 $245,058 5.2 $68,841 $63,178 9.0 

Total interest expense ................ .. .. .. ................... .. 111 ,266 105,742 5.2 30,971 27,251 13.7 

Net interest income.......... ...... ............ ................ . 146,577 139,316 5.2 37,870 35,927 5.4 

Provision for loan losses............... .............. .......... 10,912 16,812 -35.1 2,886 4,010 -28.0 

Total noninterest income... .................................... 76,222 74,961 1.7 19,769 20,111 -1.7 

Total noninterest expense. .................................. .. 144,196 139,689 3.2 38,468 36,812 4.5 

Securities gains (losses)... ................ .... ................ (570) 3,061 NIM (914) 392 N/M 

Applicable income taxes............ ...... ...................... 22,426 19,838 13.1 4,645 5,026 -7 .6 

Ex1raordinary gains, net ... .................................... (15) 2,070 NIM 15 216 -92.9 

Net income....................................................... .. . 44,680 43,069 3.7 10,742 10,797 -0.5 

Net charge-offs. .. .................................................. . 11 ,225 17,515 -35.9 3,148 4,931 -36.2 

Cash dividends...... .......... ............... .. ... .................. 28,084 22,028 27.5 10,216 8,096 26.2 

Net operating income .... ...... ... ... .. ... ... .... .. ....... .. 45,087 38,792 16.2 11 ,342 10,259 10.6 

•New accounting rules and/or reporting detail became effective March 31, 1994. See Notes to Users, pp. 21 -23. NIM - Not meaningful 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 Fourth Quarter 1994 
TABLE Ill-A. Full Year 1994, FDIC-Insured Commercial Banks 

Asset Size Di stri bution Geographic Distribution by Region 

Less $100 Million $1 Bil lion Greater East I West 

FULL YEAR Preliminary All than $100 to to than $10 North- South- Mid- South-

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

Number of institutions reporting ...... ..... .. 10,450 7,258 2,800 328 64 834 1,740 2,272 2,622 1,857 1, 125 

Total assets (in billions) . . . . . . . . . . . . . . . . . . . . . . . . . $4,010.7 $315 .9 $683.0 $1 ,072.3 $1,939.4 $1,545.1 $646.2 $659.5 $262.3 $304 .6 $593.0 

Total deposits (in billions) ............ .......... .... 2,874.4 275.5 572.9 766.7 1,259.2 990.8 486.8 491 .2 201 .0 250.9 453.5 

Net income (in millions) ............................ . 44,680 3,494 7,907 13,432 19,847 16,058 7,337 7,174 3,695 3,338 7,078 

% of unprofitable institutions ....... .. ............ 3.8 4.3 2.6 3.7 1.6 6.2 3.6 3 .3 1.7 2.9 9.7 

% of institutions with earnings gains ......... 54.4 52.1 59 .1 65.2 56 .3 66 .8 63 .6 51 .3 49.0 43 .9 67.4 

Performance Ratios(%) 

Yield on earning assets .... ...... ....... .... ... .... 7.67 7.63 7 .65 7.63 7.71 8.06 7.37 7.27 7.80 6.98 7.78 

Cost of funding earning assets .................. 3.31 2.90 2.87 3.00 3 .74 4.03 3.02 3.07 3.03 2.68 2.56 

Net interest margin .................................... 4.36 4.73 4.78 4.63 3.97 4.03 4.35 4.20 4.77 4.30 5.21 

Noninterest income to earning assets ....... 2.27 1.19 1.44 2.47 2.67 2.90 1.67 1.57 2.42 1.69 2.38 

Noninterest expense to earning assets ..... 4.29 3.96 4.00 4.41 4.39 4.57 3.86 3.65 4.40 4.06 4.86 

Net operating income to assets .. ....... .. ..... 1.16 1.15 1.22 1.34 1.05 1.06 1.19 1.16 1.47 1.15 1.26 

Return on assets .. .... .. ... ......... ............ ..... 1.15 1.13 1.20 1.31 1.06 1.07 1.18 1.13 1.46 1.12 1.24 

Return on equity.. .. .............. ..... .. ............. 14.63 11 .36 13.48 16.04 15.01 14 .71 14.78 14.08 16 .76 13.49 14.48 

Net charge-offs to loans and leases ....... 0.50 0.24 0.37 0. 54 0.57 0.75 0.27 0.29 0. 46 0.16 0.58 

Loan loss provision to net charge-offs .. ... . 97 .21 126.45 110.66 114.22 82.01 94 .05 109.20 117.95 110.94 103.59 84.31 

Condition Ratios(%) 

Loss allowance to : 

Loans and leases....... ........... .. ............ ... 2.21 1.65 1.70 2.09 2.56 2.70 1.73 1.75 1.84 1.65 2.52 

Noncurrent loans and leases ............ ...... 169.50 155.00 154.20 184.28 168.37 149.27 206.56 201 .56 212.73 191.48 165.66 

Noncurrent assets plus 

other real estate owned to assets ........... 1.01 0.86 0.92 0.90 1.13 1.28 0.72 0.66 0.68 0.67 1.33 

Equity capital ratio ............ ... ... ............. ...... 7.78 9.84 8.80 7.94 7.01 7.33 7.84 7.88 8.43 8.16 8 .33 

Core capital (leverage) ratio ....... ........ ... ... 7.64 10.15 8.93 7 .91 6.64 7 .19 7.73 7.84 8.68 8.17 7.79 

Net loans and leases to deposits 80.23 62.49 69 .99 87 .34 84.44 81 .79 81.60 80.76 77.81 62.84 85.46 ···· ···· ··· 

Growth Rates (year-to-year,%) 

Assets. ..... ... ....... ....................... .... ...... •.. 8.2 10.4 8.7 7 .7 4.4 3.7 7 .0 . . . . . . Equity capital ................... ......... ............... - - * 

Net interest income..... ...... ................... .. ... 5.2 - 6.6 6.6 1.9 9.0 3.2 3.8 

Net income ..................... .. ... .............. ........ 3.7 - 5.7 8.4 -5.7 5.5 -16.0 17.3 

Noncurrent assets plus 

other real estate owned. ......................... -32 .1 - - -34 .5 -27.2 -23 .6 -28 .5 -24.4 -35 .1 

Net charge-offs ......... .. ................ ............. -35 .9 -37 .9 -28.5 -38 .2 -17 .1 -38.1 -36 .6 

Loan loss provision .. ... ······· -35 .1 - -34 .6 -33 .1 -39 .5 -19 .3 41 .1 -43 .3 ···•······ ··········· 

PRIOR FULL YEARS 

(The way it was .. . ) 

Number of institutions....................... 1993 10,958 7,789 2,787 327 55 878 1,818 2,412 2,706 1,937 1,207 

.... ........ . ................ ... ... .. .. 1991 11 ,921 8,798 2,755 319 49 994 1,924 2,634 2,881 2,103 1,385 

····· ·· ··························"······1989 12,709 9,724 2,607 334 44 1,086 1,964 2,838 3,016 2,325 1,480

Total assets (in billions) ........... .........1993 $3,706.2 $335 .1 $676.9 $1,063.7 $1,630.5 $1,399.6 $594 .8 $612.4 $251 .3 $293 .8 $554 .3 

.......... 1991 3,430 .6 353.8 674.5 1,050.1 1,352.2 1,285.5 514.6 568.4 232.9 270.3 558.9 ·················· ·· ·· ········ ... ,, ... .. ... .... ............. ..........1989 3,299.4 365.6 625.6 1,056.1 1,252.1 1,292.2 483.9 534.3 21 4.2 267.4 507.4 

Return on assets (%) ........... .............1993 1.20 1.14 1.17 1.32 1.16 1.12 1.20 1.28 1.44 1.40 1.1 1 

..... . ..... .... ........................ 1991 0.53 0.76 0.74 0.55 0.35 0.27 0.62 0.86 1.05 0.65 0.44 

········ ···· ·········· ·· ············1989 .... 0.49 0.77 0.89 0.63 0.10 -0.02 0.88 0.99 1.00 -0.09 0.99 

Net charge-offs to loans & leases {%) 

........ .. ·························· ·· ··1993 0.85 0.35 0.51 0.92 1.02 1.27 0.43 0.51 0.61 0.28 0.96 

..................................... .... 1991 1.59 0.69 0.97 1.68 2.01 2.33 1.23 0.88 1.06 1.26 1.32 

.......... ... ... ······················ ··1989 1.16 0.76 0.75 1.05 1.55 1.32 0.60 0.91 1.19 1.93 1.18 

Noncurrent assets plus 

OREO to assets (%) ... .. ............... .1993 1.61 1.05 1.29 1.43 1.97 2.16 1.08 0.93 0.99 0.92 2.19 

.. ..... ..•. •..•.. ... . .. •.•. ............1991 3.02 1.63 2.07 2.81 4.01 4.20 2.21 1.64 1.54 2.39 3.38 

......................................... 1989 2.30 1.76 1.73 1.86 3.12 2.83 1.23 1.18 1.41 4.41 2.41 

Equity capital ratio (%) ........... .... ...... 1993 8.00 9.76 8.74 8.13 7.25 7.48 8.02 8.12 8.68 8.26 8.73 

.... ......................... .......... 1991 6.75 9.09 7.78 6.94 5.48 6.06 7 .24 7.31 8.12 6.87 6.72 

..... ..... .. ... .. ......... ... . ...... .... 1989 6.21 8.92 7.46 6.12 4.86 5.55 6.93 6.86 7.62 5.55 6.26 .

New accounting rules and/or reporting detail became effective March 31 , 1994. See Notes to Users, pp. 21-23 . 

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

Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

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

FDIC Quarterly Banking Profile 

Fourth Quarter 1994 5 FDIC-Insured Commercial Banks 
TABLE IV-A. Fourth Quarter 1994, FDIC-Insured Commercial Banks 

Asset Size Distribution Geographic Distributi on by Region 

Less $100 Million $1 Billion Greater East 7 West 

FOURTH QUARTER Preliminary 

(The way it is . .. ) 

All 

Institutions 

than$100 

Million 

to 

$1 Billion 

to 

$10 Billion 

than $10 

Billion 

Northeast 

Southeast Central I Midwest 

Southwest Wes t 

Number of institutions reporting ......... ....... 10,450 7,258 2,800 328 64 834 1,740 2,272 2,622 1,857 1,125 

Total assets (in billions) .................... ......... $4,010.7 $315.9 $683 .0 $1 ,072.3 $1,939.4 ~1 ,545.1 $646.2 $659.5 $262 .3 $304.6 $593 .0 

Total deposits (in billions) .............. ........ .... 2,874.4 275.5 57 2.9 766.7 1,259.2 990.8 486.8 491.2 201 .0 250.9 453.5 

Net income (in millions) .............. ....... ........ 10,742 795 1,954 3,183 4,809 3,661 1,746 1,714 864 774 1,982 

% of unprofitable institutions .............. .. ..... 9.2 10.7 5.9 7.6 1.6 9.5 8.2 7.9 10.0 8. 5 12.8 

% of institutions with earnings gains ......... 57.5 56 .2 60.7 60.7 51.6 67 .0 63.9 56.2 51 .0 53.6 65.0 

Performance Ratios(%) 

Yield on earning assets .... ................... .. ... . 8.03 8.03 8.10 8.10 7.96 8.18 7.81 7.83 8.27 7.44 8.31 

Cost of funding earning assets .............. ... . 3.61 3.13 3.16 3.46 3.96 4.13 3.46 3.57 3.39 3.05 2.93 

Net interest margin .. .. ............................... 4.42 4.90 4.93 4.64 3.99 4.05 4.34 4.26 4.88 4.39 5.38 

Noninterest income to earning assets ....... 2.30 1.29 1.52 2.54 2.65 2.96 1.77 1.62 2.40 1.69 2.35 

Noninterest expense to earning assets .... 4.48 4.30 4.18 4.51 4.62 4.90 3.94 3.79 4.61 4.25 4.92 

Net operating income to assets ... ..... .... ..... 1.14 1.08 1.24 1.33 1.02 0.99 1.16 1.18 1.38 1.1 1 1.40 

Return on assets .......... ........ .. ................... 1.08 1.01 1.16 1.21 1.00 0.96 1.09 1.05 1.33 1.03 1.36 

Return on equity ............. ........................... 13 .76 10.19 13.02 14.91 14.19 12.99 13.80 13.19 15.42 12.38 16.04 

Net charge-offs to loans and leases .......... 0.54 0.38 0.48 0.62 0.54 0.74 0.38 0.39 0.56 0.26 0.58 

Loan loss provision to net charge-offs ...... 91.68 93.38 96.99 113.58 74 .15 97 .56 108.64 77.60 99.17 55.61 77.63 

Growth Rates (year-to-year, %) 

Net interest income.............................. ..... 5.41 - - 5.70 7.34 4.50 3.93 -1.72 7 .93 

Net income..................... .............. ..... .. .. .... -0.51 - - -7.38 8.39 -7.26 -6.66 -17.42 30 .28 

-

Net charge-offs .................. ..................... ... -36.15 - - -44 .57 -12.20 -24.45 -16.55 -28 .48 -35.60 

Loan loss provision ......... .. ........... ...... ....... -28 .03 - -26.01 4.34 -43 .69 -8.83 19 .89 -4 6.73 

PRIOR FOURTH QUARTERS 

(The way it was .. . ) 

Return on assets (%) ......... ............... 1993 1.18 0.92 1.04 1.36 1.1 6 1.1 4 1.11 1.22 1.49 1.28 1.11 

............... ......................... 1991 0.35 0.56 0.65 0.39 0.12 0.12 0.37 0.81 0.95 0. 59 0.05 

.............................. .... ...... 1989 0.24 0.35 0.69 0.08 0.12 -0.36 0.65 0.88 0.73 -0.61 0.95 

Net charge-offs to loans & leases (%) 

0.93 0.52 0.66 0.95 1.11 1.42 0.49 0.56 0.73 0.40 0.97 ·· ·············· ··········· ·· ···········1993 

1.86 1.06 1.38 2.00 2.15 2.41 1.80 1.1 2 1.25 1.53 1.76 

.... ....................................1989 1.91 1.19 1.10 1.43 2.91 2.43 0.87 1.64 1.49 3.25 1.52 

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

Commercial Banks Make More Credit Available 

to Businesses and Consumers 

Quarterly Increase in Loans Quarterly Increase in Unused Loan 

($ Billions) Commitments ($ Billions) 

$94.0 

$84.9 

$58.7 

$42.8 

9/93 12/93 3/94 6/94 9/94 12/94 9/93 12/93 3/94 6/94 9/94 12/94 

Most of the loan growth has occurred in real estate loans. Most of the growth in loan commitments has 

In the fourth quarter of 1994, home mortgage loans occurred in unused credit card commitments. In the 

increased by $18.9 billion, credit card loans increased by fourth quarter of 1994, unused credit card commitments 

$17.0 billion, and commercial and industrial loans increased $47.0 billion, and unused commitments for 

increased by $13.7 billion. loans to businesses and consumers increased $34.1 

billion. 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 6 Fourth Quarter 1994 
TABLE V-A. Real Estate Loan Performance and Other Real Estate Owned, FDIC-Insured Commercial Banks 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

December 31, 1994 All than $100 to to than $10 North- South- Mid- SouthInstitutions Million $1 Billion $10 Billion Billion east east Central I west west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate .............................. 1.31 1.33 1.15 1.16 1.53 1.71 1.14 1.09 0.91 1.22 1.27 

Construction and development... ........................... 1.64 1.05 1.10 1.20 2.75 3.24 1.03 1.14 1.30 0.76 1.64 

Commercial real estate ......................................... 1.27 1.05 0.95 1.10 1.79 1.94 0.95 0.97 0.82 1.03 1.27 

Multifamily res idential real estate .......................... 1.65 0.75 1.05 1.09 2.97 2.21 0.69 1.32 0.69 0.68 2.92 

1-4 Family residential• .. .............. ........................... 1.34 1.63 1.36 1.26 1.30 1.51 1.38 1.24 0.98 1.40 1.22 

Home equity loans .......... ....................................... 0.84 1.37 0.78 0.76 0.88 1.13 0.52 0.59 0.57 2.03 0.82 

Commercial RE loans not secured by real estate ... 0.78 0.52 0.45 0.80 0.81 1.14 0.49 0.77 2.85 0.20 0.40 

Percent of Loans Noncurrent .. 

All real estate loans ......................... ................ .. ..... 1.70 1.02 1.19 1.46 2.41 2.65 1.02 0.99 0.89 1.05 2.23 

Construction and development... ........................... 4.14 1.08 1.79 2.89 8.48 7.60 1.23 2.64 0.73 1.02 7.66 

Commercial real estate .. .. ...... ..... ............ ............. 2.61 1.35 1.70 2.37 4.05 4.56 1.64 1.51 1.67 1.50 2.90 

Multifamily residen tial real estate ................... ....... 2.73 1.19 1.38 1.95 5.04 3.25 1.32 1.04 1.48 1.01 6.12 

1-4 Family residential• .. .. ....... ..... ........................... 0.91 0.81 0.81 0.81 1.07 1.32 0.70 0.57 0.47 0.75 1.07 

Home equity loans ....................... .......................... 0.54 0.86 0.57 0.46 0.57 0.78 0.31 0.35 0.24 0.90 0.53 

Commercial RE loans not secured by real estate ... 2.12 1.02 0.86 0.87 2.66 4.37 1.31 0.82 1.76 0.65 0.83 

Percent of Loans Charged-off (net) 

All real estate loans .. .... .. ...... .... ..... ........... .. .... ,, ...... 0.32 0.08 0.19 0.24 0.52 0.69 0.10 0.13 0.04 -0.01 0.39 

Construction and development... ................ ......... . 0.87 0.09 0.57 0.35 1.77 2.61 0.09 0.28 0.18 -0.11 0.84 

Commercial real estate .. .. ... ................ .... ............. 0.53 0.11 0.23 0.44 1.01 1.26 0.19 0.23 0.04 -0.06 0.58 

Multifamily residential real estate ............... ........... 0.51 0.22 0.49 0.46 0.64 0.99 0.10 0.29 0.00 -0.12 0.88 

1-4 Family residential• ............ ............................... 0.14 0.07 0.10 0.12 0.20 0.29 0.06 0.05 0.05 0.04 0.16 

Home equity loans ............................ .......... ..... ..... 0.21 0.20 0.10 0.12 0.32 0.23 0.07 0.03 0.04 0.09 0.43 

Commercial RE loans not secured by real estate ... 0.64 0.94 0.34 0.42 0.73 1.52 0.04 -0.02 0.08 -0.03 0.35 

Total Loans Outstanding (in billions) 

All real estate loans ..... ...... ... ....... .......... ....... ... ... .... $997.7 $98.2 $235.6 $298.1 $365.8 $283.7 $212.8 $174.9 $64.9 $72.3 $189 .1 

Construction and development. ............................ . 64 .5 6.4 16.6 21.7 19.8 13.5 16.5 10.7 4.0 5.8 14.0 

Commercial real estate ......... ............................. ... 283.2 26.6 78.9 89 .9 87.8 73.4 62.4 53.2 17.6 21 .5 55 .1 

Multifamily residential real estate ............ .. ....... .. .. . 31 .9 2.3 8.3 11.1 10.2 8.1 6.6 6.2 2.3 2.2 6.5 

1-4 Family residential• .............................. ..... .. ...... 493.1 49.5 111 .0 147.1 185.5 137.7 110.2 85.1 31.2 39.2 89.7 

Home equity loans ............................................ .... . 75.8 2.4 13.2 25.4 34.8 26.5 13.4 13.9 2.6 0.9 18.6 

Commercial RE loans not secured by real estate ... 17.7 0.3 1.2 3.9 12.4 6.1 2.1 2.1 0.6 1.0 5.8 

Other Real Estate Owned (in millions) 

All other real estate owned ............. ............. ........... $9,579 $833 $1 ,792 $1,821 $5,133 $4,721 $1 ,285 $765 $391 $608 $1,811 

Construction and development .....................•........ 1,745 130 396 537 682 650 349 193 70 107 375 

Commercial real estate ....... ........ ... .......... .. ........... 5,193 402 877 922 2,993 2,656 649 419 215 346 908 

Multifamily residential real estate ............... .......... 444 35 100 66 242 245 29 30 31 16 92 

1-4 Family residential .... ............................. ........... 1,497 212 370 264 652 633 224 107 49 98 386 

Farmland ........ ............................. .......................... 177 55 50 28 45 13 33 16 26 39 50 

Other real estate owned in foreign offices ............. .Excludes home equ ity loans . 

523 0 0 4 519 523 0 0 0 0 0 

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

Return on Assets (ROA) and Equity (ROE) 

1934 -1994 

ROA% 

1.6 r------------------------, 

1.4 Return on Equity 14 

1.2 12 

10 

0.8 8 

6 

0.4 4 

Return on AssBla 

0.2 2 

1934 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 1994 

In 1934 ROA was -0.77% and ROE was-5.80% 

Reserve Coverage Ratio* 

1990 · 1994 

$ Billions Coverage Ratio 

100 r-----------------------, 180% Noncurrent Loans ($) 

80 

......\ -·· ·••• . . ...... .. . ..• ····•. 144% 

60 

··•• Loan-Loss Reserves ($) •••• 

--------- ... ·-·· -·· -·· -·· -·· -·· -··- --- -·· -· .-.. -·· -·· -·· -·· ··... 

108% 

••••.. 72% 

····--... 36% 20 Coverage Ratio (%) 

QW.......J.......J......J......L......1-'--'-'-......-'-....L......L....J...-'-....J.......L......J......L......1~ 0 

12341234123412341234 

1990 1991 1992 1993 1994 

• Loan-Loss Reserves to Noncurrent Loans and Leases. 

FDIC Quarterly Banking Profile 

Fourth Quarter 1994 7 FDIC-Insured Commercial Banks 
------

2 

SAVINGS INSTITUTION PERFORMANCE - FOURTH QUARTER, 1994 

Savings Institutions Earned $1. 7 Billion In The Fourth Quarter, 

$6.4 Billion For The Full Year 

High Funding Costs And Restructuring Charges Hold Down Earnings 

Assets Register First Full-Year Increase Since 1988 

Four Institutions Failed In 1994, Two In The Fourth Quarter 

Private-sector savings institutions earned $1.7 billion 

in the fourth quarter of 1994, for an annualized return 

on assets (ROA) of 0.67 percent. Net income was 

down by $207 million from the third quarter1 due to 

lower net interest income (down by $250 million) and 

increased noninterest expense (up by $248 million). 

Provisions for loan losses were $80 million higher 

than in the previous quarter, but were 45 percent 

lower than in the fourth quarter of 1993, when thrifts 

set aside $1 billion for loan losses. Securities sales 

produced losses of $80 million in the fourth quarter, 

compared with a $10 million gain in the third quarter 

and a $400 million gain in 1993. Although thrifts had 

$5 million in extraordinary losses in the fourth quarter, 

this represents a dramatic improvement over the third 

quarter when extraordinary losses were $265 million. 

More than half of all thriftf, 55 percent, had lower 

earnings in the fourth quarter than a year earlier. 

Quarterly Net Income, 1990 - 1994 

$ Billions 

3 ,------,----.----,------,-----, 

■ Securities and Other Gains, Net 2.4 

D Net Ope:ating Income 1.7 

(1) 

(2) 

(3) ._._..............._..__._._.___.__.__......__.__,.__.__._...._.__.__......... .........__.__,__~ 

1234 123 4 123 4 123 4 1234 

1990 1991 1992 1993 1994 

With rising interest rates, net interest margins continued to fall. Net interest margins declined to 3.25 

percent in the fourth quarter from 3.35 percent in the 

previous quarter. The 10 basis point drop in net 

interest margins was the largest quarterly drop all 

year. Average asset yields rose 23 basis points this 

quarter, but were out-paced by a 33-basis point increase in funding costs. Net interest margins were 

down in all but the smallest size group and in all 

regions. The Southwest Region reported a higher 

margin for the fourth quarter only because the accounting treatment of one large merger transaction2 

caused average earning assets to be understated. 

Adjusting for the merger using year-end earning assets (rather than an average for the quarter), causes 

the region's net interest margin to fall by 18 basis 

points. 

Quarterly Net Interest Margins 

1990 -1994 

Net Interest Margin (%) 

4.o~-,--~~~~--------~~~~ __, Assets <$100 Million 3.77% 

~...... l"-,.r---..--- 3.5 - l - -... ... •, - V ... .. . -............ / ,•· -... 

3.0 - - _l// -/ - - - - i.---- ••• 

i,..,-- .•• Assets >$100 Million 3.22% 

..

. 2.5 -•- - ..

.

.

. •... 

...... 2. 0 '-'----'--'---'---'--'--'---'-.........--'-----'-_._.....___.__,___.__..__.__._...... 

12341234123412341234 

1990 1991 1992 1993 1994 

Net income for the full year, at $6.4 billion, was below 

the pace set in 1993, when thrifts earned $6.8 billion, 

but net operating income improved by 4.8 percent. 

Net operating income (which exclude proceeds from 

securities sales and extraordinary items) increased 

from $6.6 billion in 1993 to $6.9 billion in 1994. 

Provisions for loan losses were down by $1.9 billion 

as asset quality improved, but this improvement was 

partially offset by a $1.7 billion drop in net interest 

income. Securities sales, which produced a $400 

million gain in 1993, generated a $28 million loss for 

1994. Extraordinary losses were up by $433 million, 

as several large institutions took charges to 

strengthen their balance sheet. Over 93 percent of all 

savings institutions reported profits for 1994, but one 

1

Third quarter earnings were adjusted down from $2.1 billion 

reported in the last Quarterly Banking Profile to $1.9 billion, due 

to an amendment filed by a savings institution in California reflecting an extraordinary charge. 2First Madison Bank, FSB of Dallas, Texas ($981 million in total 

assets) merged with First Nationwide FSB of San Francisco, 

California ($14 billion in assets) during the fourth quarter of 1994. 

The combined institution is headquartered in Dallas, Texas. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 Fourth Quarter, 1994 
·

of every four large institutions (over $5 billion in 

assets) lost money. Despite the $431 million drop in 

net income, thrifts increased cash dividends by $272 

million. Earnings retained by the industry fell from 

$4.6 billion in 1993 to $3.8 billion during 1994. 

Reserve Coverage Ratio • 

1990 -1994 

$ Billions Coverage Ratio 

30 100% Noncurrent Loans ($) 

·············\ ..... 80% 25 

.- ·-. 20 •••• ••••••• 

60% ··.... 15 ......... ..............__ .... 40% 

10 .-- ·•.. -·· -··-·· -··-· .. ·-··-··-·····-·····-· -··' ·-.. / 20% Loan-Loss Reserves ($) 

o w...--'--'--J.._'---'--'-----'-----1..__J_....1........L---'--'--"--L....l--'-----'----l...J o 

12341234123412341234 

1990 1991 1992 1993 1994 

• Loan•loss reserves to noncurrent loans and leases. 

Reserves for loan losses fell during 1994, as net 

charge-offs of $3.1 billion exceeded loan-loss provisions of $2.4 billion, but noncurrent loans declined 

more rapidly. Reserves declined $386 million during 

the fourth quarter and by $991 million, or 11.4 percent, over the year. However, noncurrent loans fell 

by $1.2 billion in the quarter and by $3.8 billion (28.6 

percent) for the year. As a result, the "coverage ratio" 

(reserves to noncurrent loans), improved to 81 cents 

for each dollar of noncurrent loans at year-end, up 

from 75 cents at the end of the third quarter and from 

65 cents at the end of 1993. 

Earnings improved in the Southwest and West regions in the fourth quarter. Thrifts in the West Region 

showed a $104 million increase in earnings compared to the previous quarter. Southwest Region 

thrifts reported $60 million more in earnings than in 

the third quarter, with $34 million contributed by the 

addition of a large California institution in the fourth 

quarter (see footnote 2). All other regions had lower 

earnings in the fourth quarter. The Midwest Region 

reported a loss for the quarter because one institution 

with 15 percent of the region's assets took a restructuring charge. All regions reported aggregate profits 

for the full year, but restructuring charges significantly 

reduced profits in the Midwest and West regions. 

The Midwest Region reported an ROA of 0.39 percent for 1994 while the West Region had an ROA of 

0.31 percent. All other regions reported ROAs of over 

0.75 percent. 

The industry reduced its overhang of troubled real 

estate assets during 1994. Troubled real estate assets - noncurrent real estate loans plus other real 

estate owned - declined by one-third ($6.8 billion) 

in the year. Troubled real estate assets fell by $2.7 

billion in the West Region and $3.0 billion in the 

Northeast. However, charge-offs were significantly 

higher in the West, reflecting weaker real estate 

markets there. Real estate loan charge-offs in the 

West ($1.6 billion) were more than double the amount 

($709 million) charged off by thrifts in the Northeast. 

The higher losses in the West meant lower earnings. 

In 1994, the West Region set aside $1.4 billion in 

provisions to replenish loan loss reserves, in contrast 

to the $699 million loss provision reported by North­

~ast institutions. 

Troubled Real Estate Asset Rates by Region 

1990-1994 Percent 

10 r-------------------~ 

Northeast 

8 \ ..... 6 .

·····•... .. -·. , ..-<.. .... •. -·· -·. 

4 _..-····· / ··...... '··-.. .... , .. -. .... ..... 

Rest of U.S. •••••••·• •• '·· . 2 ··· - / ....... West ···•······· 0 '-'---'---'---'---'--'---'---'---'--..L..,_..L..,_J.._J__J__J__j__j__j__L-.JLJ 

1 2341234123412341234 

1990 1991 1992 1993 1994 

"Loans secured by real estate past due 90 days or more or In nonaccrual status plus 

other real estate owned (OREO) as a percent of total real estate loans plus OREO. 

Total assets held by savings institutions increased for 

the second consecutive quarter. Industry assets rose 

by $2.5 billion during the fourth quarter and registered 

a $7.8-billion increase for the year. This is the first 

annual growth in assets since 1988. The largest 

increase during the fourth quarter was in loans secured by 1-4 family residential properties, which grew 

by $11.1 billion, accounting for most of the year's 

increase in mortgage loans of $12.1 billion.3 Securities decreased $5.8 billion during the fourth quarter, 

but grew by $14.5 billion for the year. Some of the 

reduction is attributable to new accounting rules 

(FASB Statement 115) which require institutions to 

value certain securities at fair (market) value, see 

Notes to Users, page 21. 

3

1n the fourth quarter, American Savings Bank, Stockton, California 

rec!assified securities as loans, adding $3.2 billion to 1-4 family 

res1dent1al loans and reducing securities by $2.4 billion. 

FDIC Quarterly Banking Profile 

Fourth Quarter, 1994 9 FDIC-Insured Savings Institutions 
.

For the ninth consecutive quarter, thrifts reduced 

their reliance on deposits in favor of other borrowed 

funds. Deposits declined by $11.2 billion while other 

borrowed funds increased by $15.0 billion. For the 

year, deposits declined by $37.0 billion (4.8 percent), 

while other borrowings increased by $44.4 billion. 

The industry's core capital (leverage) ratio stood at 

7.66 percent at the end of the fourth quarter, up from 

Number and Assets of FDIC•lnsured 

Savings Institutions, 1984 · 1994 

Number of Institutions Assets $ Billions 

4,000 ~-----------------, 2,000 

Number of Institutions 

"" 

3,500 

... ..... ··......... 

1,500 

·······--- 3,000 ........... 1,000 

Total Assets 

2,500 500 

2,000 ...................................................................................................................................~~ 0 

1234123 4 123412341234123412341234123412341234 

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 

7.45 percent at the beginning of the year and a 

marked improvement compared with 1990 when it 

stood at 4.62 percent. Savings institutions' core capital ratio now exceeds commercial banks' core capital 

ratio of 7.64 percent. 

The number of savings institutions continued to decline through year-end. During 1994 the number of 

institutions declined by 110, from 2,262 to 2,152. 

Commercial banks acquired 80 institutions with 

$40.6 billion in assets during 1994, while consolidation within the thrift industry accounted for a decline 

Number of Mutual and Stock Savings Institutions 

1985 • 1994 

Number of lnslitulions 

3,000 

Mulual Institutions 

2,500 

2,000 

Stock Institutions 

1,500 .~ ·······. ...•········""·· •·••·••······•....................-••·· 

1,000 

Annual Return on Assets (ROA) 

1984 · 1994 

ROA(%) 

0.8 ,---------------------, 

0.6 

0.4 

0.2 

Five Highest 

1993 0.70% 

1994 0.66% 

1992 0.65% 

(0.4) 1985 0.46% 

1986 0.21% 

(0.6) ~-~-~-~-~-~--~-~-~-~ 

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 

of 46 institutions. During the fourth quarter, commercial banks purchased 13 thrifts with $8.2 billion in 

assets. Six thrifts with $5.6 billion in assets converted 

to commercial banks in the fourth quarter. The thrift 

industry gained $1 billion in assets from commercial 

banks, primarily through acquisitions. During the 

year, one hundred thrifts with about $38 billion in 

assets converted from mutual to stock ownership, 

down from 122 conversions and $45.8 billion in assets in 1993. 

Two institutions failed in the fourth quarter. For all of 

1994, four institutions failed, half the number that 

failed in 1993. The number of "problem" institutions 

at year end was 71 with $39 billion in assets, down 

from 84 institutions with $59 billion in assets at the 

end of the third quarter, and 146 institutions with $92 

billion in assets at the end of 1993. Steady improvement in the condition of the industry has reduced the 

assets of "problem" institutions, for the second 

straight year, assets of these institutions were reduced by about half. 

Assets of Mutual and Stock Savings Institutions 

1985 · 1994 

$ Billions 

1,400~----------------- --, 

1,200 

1,000 

Stock Institutions 

-........ .-· ·... "-...... ..-· ··, .. . . ····· .· ...... 

800 ...···· ·•...............•········· 

.--· 600 ••-

400 

/ Mutual Institutions 200 

12341234123412341234123 4 1234123412341234 

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 

0 LI..J....LJ...L.I....L...1..J...J...L.J.....L...LL..L-LI....L..J.....1....L...1...L.J....L.J.....L.J.....L...L~W-J....L..J.-'-'-' 

123412341234 1 234123412341234123412341234 

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Fourth Quarter, 1994 
TABLE 1-8. Selected Indicators, FDIC-Insured Savings Institutions* 

1994 1993 1992 1991 1990 

Return on assets(%) ................................................... 0.66 0.70 0.65 0.08 -0.37 

Return on equity(%) ........................ ... ..... ... .....•....•... . 8.34 9.24 9.48 1.26 -6.68 

Core capital (leverage) ratio(%) .......... .. ..................... 7.66 7.45 6.77 5.54 4.62 

Noncurrent assets plus 

other real estate owned to assets(%) ................ .. ..... 1.38 2.10 3.07 3.96 3.98 

Net charge-offs to loans(%).... ........ ............................ 0.50 0.65 0.59 0.65 0.61 

Asset growth rate (%).................................................. 0.77 -2.85 -7.44 -11.61 -11 .79 

Net interest margin(%) ............................. ....... .......... . 3.34 3.48 3.40 2.76 2.27 

Net operating income growth(%) ................................ 4.76 11.62 NIM N/M N/M 

Number of institutions ......... ....... .. ..... ........................... 2,152 2,262 2,390 2,561 2,815 

Percentage of unprofitable institutions ........................ 6.92 5.84 7.57 18.35 30.09 

Number of problem institutions ......... ......................... .. 71 146 276 410 480 

Assets of problem institutions (in billions) ................... $39 $92 $183 $291 $298 

Number ········ ··· ········•"' of failed/assisted institutions.. 4 8 81 163 223 

TABLE 11-8. Am1reQate Condition and Income Data, FDIC-Insured Savings Institutions* 

(dollar figures in millions) Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

1994 1994 1993 93:4-94:4 

Number of institutions reporting ............................. ................. . 2,152 2,181 2,262 -4.9 

Total employees (full-time equivalent) ....... ...................... ....... . 261,449 270,037 286,592 -8.8 

CONDITION DA TA 

Total assets.. .. .... ... ..... ....... ... .. ......... .. .................................... . $1,008,644 $1,006,192 $1 ,000 ,889 0.8 

Loans secured by real estate ....... ..... ... .......... .. ..... ... ..... .. .. 602,925 594,318 595,436 1.3 

1-4 Family residential. .......... ................ .......................... . 467,898 456,773 455,760 2.7 

Multifamily residential property ................... ................... . 62,671 63,641 64,283 -2.5 

Commercial real estate ................................................. ... 52,332 53,359 56,367 -7.2 

Construction, development and land ..... .. ....................... . 20,024 20,546 19,026 5.3 

Commercial & industrial loans ................. .. ....................... . 9,894 9,518 9,825 0.7 

Loans to individuals .......... .... ...... ............. .......... .. .. ... .... .... . 38,577 38,601 37,568 2.7 

Other loans & leases .................. .............. ............... ......... . 1,604 1,552 1,479 8.5 

Less: Unearned income & contra accounts ...... ...... ....... .... 10,197 10,725 9,264 10.1 

Total loans & leases .......................................................... .. 642,803 633,264 635,045 1.2 

Less: Reserve for losses .................... ................................ . 7,672 8,058 8,662 -11.4 

Net loans & leases ............... .. .. ........ ... .... ....................... ........ 635,132 625,206 626,382 1.4 

Securities.. ... ... ..... .................. ....... ........................ ................ . 290,271 296,075 275 ,773 

Other real estate owned ...... .. .......... .... .......... ............... ... ..... . 4,418 5,065 7,669 -42.4 

Goodwill and other intangibles .. ...... .. .......... ......................... . 5,746 5,823 5,976 -3.9 

All other assets ........ . .................................................. ..... ... .. 73,078 74,023 85,089 

Total liabilities and capital. . 1,008 ,644 1,006,192 1,000,889 0.8 

Deposits .......................... . 737,143 748,311 774,1 44 -4.8 

Other borrowed funds .............. ............................................ . 178,381 163,402 134,016 

Subordinated debt. .. .............. ................... ................. .... 2,395 2,485 2,533 -5.5 

All other liabilities .............................................. ............ 10,679 11,079 11 ,773 

Equity capital .................................... ... .................. .. ... ... 80,046 80,916 78,422 

Loans and leases 30-89 days past due .............. .... ................ . 8,578 8,308 9,932 -13.6 

Noncurrent loans and leases.. .......... ....... ................ ............... . 9,509 10,749 13,310 -28.6 

Restructured loans and leases .... ........................................... . 7,219 8,042 10,298 -29.9 

Direct and indirect investments in real estate ......................... . 414 492 751 -44.9 

Mortgage-backed securities ................................................. .. . 214,009 216,338 198,641 

Earning assets .................... ........................ .................... ........ . 941 ,995 940,400 930,102 1.3 

FHLB Advances (TFR filers only) .................. .. .. ... ......... ....... . 88,861 83,362 76,035 16.9 

Unused loan commitments .......................... ... .... ... 71 ,084 70,919 95,394 -25.5 

Preliminary Preliminary 

Full Year Full Year 4th Quarter 4th Quarter %Change 

INCOME DATA 1994 1993 %Change 1994 1993 93:4-94:4 

Total interest income ...... ..... ............... ...... ...... ... . $63,470 $66,139 -4.0 $17,037 $16,174 5.3 

Total interest expense ......................................... . 33,410 34,521 -3.2 9,500 8,312 14.3 

Net interest income .................... ...... ............... . 30,060 31,619 -4.9 7,537 7,862 -4.1 

Provision for loan losses .................. .................... . 2,421 4,311 -43.9 570 1,037 -45.1 

Total noninterest income ............. ... ................ ...... . 6,238 7,896 -21.0 1,741 2,289 -23.9 

Total noninterest expense ......... .. ............... .......... . 23,218 24,898 -6.8 6,065 6,478 -6.4 

Securities gains (losses) ...................................... . (28) 400 N/M (80) 55 N/M 

Applicable income taxes....... ... ......... ......... ... .. ...... . 3,781 3,858 -2.0 888 1,010 -1 2.0 

Extraordinary gains, net ...... ............ ........ ............ . (437) (4) N/M (5) (55) NIM 

Net income .... ............. ....... ............................ .... . 6,412 6,844 -6.3 1,669 1,611 3.6 

Net charge-offs .. .. ................ ................................. . 3,053 4,027 -24.2 673 1,103 -39 .0 

Cash dividends .... ..... .. .... ..... ............. ..... .............. . 2,564 2,293 11 .9 1,024 838 22.3 

Net operating income 6,866 6,554 4.8 1,727 1,626 6.2 

·Excludes InstItut1ons in Resolution Trust Corporation conservatorsh1p and one self-l1qu1dat1ng 1nstttutIon. NIM - Not meaningful 

..New accounting rules and/or reporting detail became effective March 31, 1994. See Notes to Users, pp. 21-23. 

FDIC Quarterly Banking Profile 

Fourth Quarter, 1994 11 FDIC-Insured Savings Institutions 
TABLE Ill -8 FuII Year 1994 FDIC-InsuredSavmgs nst1tut1ons* ' Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

FULL YEAR Preliminary All than $100 to to than $5 North- South- Mid- South-

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

Number of institutions reporting ................ 2,152 996 992 133 31 786 343 547 160 141 175 

Total assets (in billions) .................... ........ $1,008.6 $50.4 $286.0 $292.3 $379.9 $330.9 $82.1 $155 .5 $53.1 $70.8 $316.1 

Total deposits (in billions) .. .. ........ .............. 737.1 42.9 230.2 207.3 256.8 263.0 62.5 115.9 37.5 43 .8 214.5 

Net income (in millions) .............. ............... 6,412.3 397.7 2,180.3 2,326.2 1,508.0 2,888 .3 660.8 1,142.2 200.3 573.4 947.3 

% of unprofitable institutions ..................... 6.9 6.5 6.6 8.3 25.8 5.1 8.5 3.8 5.0 5.0 25.1 

% of institutions with earnings gains ......... 35.6 35.2 34.2 47.4 45 .2 40 .5 38.5 32.4 22.5 38.3 28.6 

Performance Ratios (%) 

Yield on earning assets ............................. 7.06 7.25 7.21 7.10 6.88 7.16 7.16 7.17 7.05 6.96 6.87 

Cost of funding earning assets .... .............. 3.71 3.55 3.59 3.71 3.84 3.42 3.78 3.83 4.07 4.12 3.81 

Net interest margin ................ .................... 3.34 3.70 3.62 3.39 3.03 3.74 3.38 3.34 2.98 2.85 3.06 

Noninterest income to earning assets ...... . 0.69 0.58 0.59 0.82 0.69 0.63 0.72 0.61 0.49 1.06 0.76 

Noninterest expense to earn ing assets ..... 2.58 2.89 2.73 2.55 2.44 2.69 2.59 2.42 2.57 2.42 2.57 

Net operating income to assets .... .. .. ......... 0.71 0.79 0.78 0.85 0.54 0.90 0.86 0.86 0.41 0.97 0.40 

Return on assets ....................................... 0.66 0.80 0.78 0.83 0.42 0.89 0.84 0.76 0.39 0.97 0.31 

Return on equity ........................................ 8.34 8.24 8.76 10.29 6. 14 10.74 9.91 8.75 4.97 13.50 4.31 

Net charge-offs to loans and leases.. .. ...... 0.50 0. 10 0.23 0.49 0.78 0.49 0.16 0.11 0.15 0.29 0.85 

Loan loss provision to net charge-offs ...... 79 .28 151.08 109.95 86 .11 68.25 75.86 92 .64 119.35 153.66 77 .57 76 .25 

Condition Ratios (%) 

Loss allowance to: 

Loans and leases .............................. .. .... 1.19 0.84 1.12 1.36 1.18 1.47 1.01 0.80 0.77 1.04 1.26 

Noncurrent loans and leases .................. 80.68 68.76 88.10 91 .26 71 .10 72.09 87.48 140.93 125.90 77.77 77.49 

Noncurrent assets plus 

other real estate owned to assets .... .. ..... 1.38 1.08 1.23 1.47 1.46 1.83 1.07 0.50 0.61 1.37 1.57 

Noncurrent RE loans to RE loans .......... ... 1.47 1.16 1.24 1.53 1.64 2.03 1.11 0.54 0.62 1.36 1.64 

Equity capital ratio .. ................................... 7.94 9.95 9.04 8.12 6.70 8.52 8.59 8.76 7.71 7.01 6.99 

Core capital (leverage) ratio .......... ...... ...... 7.66 9.88 8.97 7.85 6.23 8.39 8.42 8.45 7.25 6.72 6.58 

Gross real estate assets to gross assets .. 80.05 73.58 75 .82 78.05 85.67 75 .16 78 .70 81 .13 78.74 80.20 85.19 

Gross 1-4 fam ily mortgages to gr. assets . 45.58 52 .27 45 .62 38.92 49.79 40 .88 47 .69 49.71 45.08 36.06 50 .18 

Net loans and leases to deposits .............. 86 .16 79 .11 78 .95 82.87 96.46 73 .21 84.45 85 .74 85 .55 90.12 102.06 

Growth Rates (year-to-year,%) 

Assets . ................... ..... ..... ............... .......... 0.8 -1.7 -7.9 3.2 4.3 24 .5 -0.1 

. . . ... ... Equity capital ..... ......... ............ ... ................ *** *** *** *** *** 

Net interest income ..................... .............. -4.9 . . -2.5 -7.3 -3.9 -2.5 2.5 -9.4 

Net . . income ................................ ... ............. -6.3 29.6 7.0 -19.7 -58.4 -35.8 -21 .1 

Noncurrent assets plus 

other . . . . real estate owned ........................... -33.6 -34 .0 -33.4 -28.5 -23.4 -24 .7 -35.9 

Net charge-offs .......................................... -24.2 -30.7 -58.4 4.2 11 .0 24.0 -20 .9 . . 

Loan . . . loss provision ........ ...... ........ .. .. ......... -43.9 -42 .8 -68 .5 -42 .1 28.6 -8.5 -44.9 

PRIOR FULL YEARS 

(The way it was ... ) 

Number of institutions .......... ........ .. .. .1993 2,262 1,048 1,040 146 28 826 367 568 166 147 188 

...... .. ......... ...................... 1992 2,390 1,109 1,094 158 29 852 416 590 176 154 202 

....................................... 1991 2,561 1,184 1,166 182 29 909 459 620 187 163 223 

Total assets (in billions) ............... ...... 1993 $1,000.9 $53.4 $298 .8 $306 .8 $341.9 $336.6 $89.1 $150.8 $50.9 $56.9 $316 .6 

.......................... ............. 1992 1,030.2 55 .9 316.2 325.3 332.7 341.2 109.0 150.5 49 .5 61.4 318.7 

...................... ...... ........... 1991 1,113.0 58 .9 334.5 380.9 338.7 377.1 122.2 155.0 49 .7 63 .5 345.4 

Return on assets (%) .................. .. ....1993 0.70 1.00 0.93 0.62 0.52 0.68 0.71 0.97 0.98 1.58 0.38 

........ .................. ............. 1992 0.65 0.86 0.81 0.67 0.47 0.59 0.77 0.89 1.09 1.55 0.34 

..................................... .. 1991 0.08 0.35 0.24 0.05 -0.10 -0.39 0.09 0.51 0.58 0.54 0. 21 

Net charge-offs to loans & leases (%) 

................................... .. .. 1993 0.65 0.15 0.29 0.53 1.10 0.68 0.34 0.11 0.1 5 0.28 1.00 

........ .. .. ........................... 1992 0.59 0.23 0.37 0.67 0.77 0.88 0.38 0.20 0.26 0.34 0.60 

....................................... 1991 0.65 0.30 0.50 0.84 0.66 1.12 0.58 0.21 0.28 0.41 0.45 

Noncurrent assets plus 

OREO to assets (%) ...... ......... 1993 2.10 1.43 1.74 2.16 2.45 2.72 1.48 0.72 0.83 2.26 2.44 

............... .. .... .................. 1992 3.07 1.83 2.35 3.12 3.92 3.80 2.43 0.99 1.24 3.92 3.60 

........ .. ......... .................... 1991 3.96 2.25 3.13 4.57 4.40 5.13 3.65 1.38 1.61 7.44 3.65 

Equity capital ratio (%) ............... .......1993 7.84 9.33 8.61 7.71 7.04 7.99 7.97 8.53 7.90 7.12 7.42 

.. .. .... ................... .. .......... 1992 7.22 8.47 7.71 7.12 6.62 7.26 7.48 7.89 7.05 6.32 6.96 

........ ..... ....................... .. 1991 6.17 7.78 6.79 5.85 5.62 6.19 6.02 6.87 5.47 4.62 6.26 

*Excludes 1nst1tut1ons in Resolution Trust Corporation conservatorsh1p and one self-l1qu1dat1ng 1nst1tut1on. 

*•Not adjusted to reflect the migration of a $14 billion institution from the West Region to the Southwest Region during the fourth quarter. 

*"New accounting rules and/or reporting detail became effective March 31, 1994. See Notes to Users, pp. 21-23. 

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

Vermont, U.S. Virgin Islands 

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

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

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

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 12 Fourth Quarter, 1994 
ALL FDIC-INSURED INSTITUTIONS 

Total Domestic Deposits Increase 

BIF Rises To $21.B Billion And Coverage Ratio To $1.15 

SAIF Dips Slightly Due To Fourth-Quarter Reserves 

"Dakar" And "Sasser" Share Of SAIF Domestic Deposits Surpasses 32 Percent 

The total assets of all 12,596 private-sector FDICinsured institutions surpassed the $5 trillion level at 

year-end 1994, having risen $90 billion (1.8 percent) in 

the fourth quarter and $312 billion (6.6 percent) for the 

full year (the year-to-year growth includes accounting 

changes; see Notes to Users). Of the $90 billion growth 

in the fourth quarter, $70 billion was funded by deposit 

growth. In contrast to recent quarters, deposits in domestic offices increased by $41.7 billion, outpacing 

growth in foreign-office deposits of $28.7 billion. 

Two FDIC-insured institutions failed in the fourth quarter, including one BIF-member savings bank and one 

SA IF-member savings bank. For all of 1994, there were 

13 BIF-memberfailures, with total assets of $1.4 billion, 

and two SAIF-member failures, with total assets of 

$137 million. By comparison, failures in 1993 included 

41 BIF members ($3.5 billion) and nine SAIF members 

($6.1 billion). At year-end 1994, the BIF had a balance 

of $21 .8 billion (unaudited), or $1.15 for each $100 of 

insured deposits, and the SAIF had a balance of $1 .9 

billion (unaudited) and a coverage ratio of $0.28. The 

BIF coverage ratio rose from $1.03 at the end of September, while the SAIF balance and coverage ratio 

slipped from September levels ($2.0 billion and $0.29) 

as reserves were set aside in the fourth quarter for 

anticipated future losses. The Resolution Trust Corporation is responsible for the resolution costs of SAIFinsured institutions that fail before July 1, 1995, after 

which the SAIF assumes responsibility. 

An institution's insurance fund membership and primary federal supervisor are generally determined by 

the institution's charter type. BIF members are predominantly commercial banks supervised by one of the 

three federal banking agencies, and SAIF members are 

predominantly savings institutions supervised by the 

Office of Thrift Supervision (OTS). However, as described below, these relationships can be altered by 

deposit acquisitions and charter switches. 

"Oakar" deposits. A member of one insurance fund 

may acquire deposits insured by the other fund, but this 

portion of the acquiring institution's deposits retains 

coverage under the other fund. At year-end 1994, there 

were 718 BIF-member Oakars, compared to 688 in 

September and 570 at year-end 1993. At year-end 

1994, these institutions held $180 billion in SAIF-insured deposits. This was 25 percent of all SAIF domestic deposits (including conservatorships), up from 23.3 

percent in September and 18.8 percent at year-end 

1993. SAIF-insured deposits held by BIF members grew 

$13.5 billion during the fourth quarter, but a portion of this 

growth was attributable to the annual reporting adjustment to these deposits required by the enabling legislation.1 On December 31, 52 SAIF-member institutions 

held an estimated $10.7 billion in BIF-insured deposits, 

which was 0.4 percent of BIF domestic deposits. SAIFmember Oakar deposits are up from $8.7 billion in 

September and $4.8 billion at the end of 1993: 

"Sasser" institutions. Since 1989, institutions have 

been permitted to switch charter type and primary 

federal supervisor without changing insurance fund 

membership. On December 31, 1994, 319 SAIF-member institutions were subject to supervision by one of 

the three federal banking agencies. The number of 

Sassers, which include both state-chartered savings 

banks and commercial banks, was up from 308 in 

September and 276 at the end of 1993. At year-end 

1994, these institutions held SAIF deposits of $52.8 

billion, or 7.3 percent of all SAIF deposits, compared to 

7.1 percent in September and 6.1 percent in December 

1993. 

FICO bonds. The Financing Corporation (FICO) was 

established by Congress in 1987 to issue bonds to fund 

an early attempt to resolve the problems of the thrift 

industry and its former deposit insurance fund. While this 

attempt fell short, the thrift industry is required to pay 

interest on these bonds of about $780 million per year 

until they mature in the years 2017 to 2019. To accomplish this, Congress gave FICO a priority claim on SAIF 

assessment income. However, this claim can only be paid 

from assessments of savings associations that are SAIF 

members, and this excludes BIF-member Oakar banks 

and all Sasser institutions, which are savings banks. As 

the proportion of SAIF deposits held by Oakars and 

Sassers grows, the fixed FICO assessment must be paid 

from a shrinking base. Oakar and Sasser institutions 

currently hold about one-third of the SAIF assessment 

base, but if this portion were to increase to about one-half, 

assessment income available to FICO would be insufficient. Under certain assumptions, this could occur within 

ten years. Other possible causes of assessment-base 

shrinkage would also contribute to a potential FICO-assessment shortfall. 

1

An institution's Oakar deposits are adjusted annually by the institution's 

overall deposit growth rate, net of acquisitions, thereby holding the 

proportion of Oakar deposits constant. 

FDIC Quarterly Banking Profile 

Fourth Quarter, 1994 15 All FDIC-Insured Institutions 
Estimated FDIC-Insured Deposits by Fund Membership and Type of Institution 

December 31, 1994 

(dollar figures In millions) Number of Total Total Estimated Insured Deposits 

Institutions Assets Deposits•• BIF SAIF Total 

Private-Sector Commercial and Savings Institutions 

FDIC-Insured Commercial Banks ........... ... ................. ....... .. 10,450 4,010,664 2,874,351 1,731 ,896 149,962 1,881,859 

BIF-member ................................... ........................... .. .. .... 10,371 3,988,681 2,857,648 1,730,292 138,441 1,868,734 

SAi F-member ........ ............................ ..... .................... .. .... 79 21,983 16,704 1,604 11,521 13,1 25 

FDIC-Insured Savings Institutions.. ................................... -.. 2,152 1,008,644 737,143 162,269 541,426 703,694 

OTS-Supervised Savings Institutions ............................... 1,542 774, 124 551,062 25,674 500,1 41 525,815 

BIF-member ......................................... ....•..................... 17 73,531 55,406 16,672 36,886 53,558 

SAIF-member* ............................................................ ... 1,525 700,593 495,656 9,002 463,255 472,257 

FDIC-Supervised State Savings Banks ........ .. ... ... ... ......... 610 234,521 186,081 136,595 41 ,285 177,879 

BIF-member ............... .. .......................................... .... .... 370 184,754 148,300 136,526 4,791 141 ,31 6 

SAIF-member ....................................................... ...... ... 240 49,766 37,781 69 36,494 36,563 

Total Private-Sector Commercial and 

Savings Institutions ........................................................ 12,602 5,019,308 3,611 ,494 1,894,165 691,388 2,585,553 

~~~~······························· ·················-··········· ··········· 10,758 4,246,966 3,061,353 1,883,490 180,118 2,063,608 

SAIF-member .......................................................... .. .... .. ..... 1,844 772,342 550,141 10,675 511,270 521,946 

Other FDIC-Insured Institutions 

RTC Conservatorships ....... ...... ......... ......... ..... .... ................. 2 1,993 1,239 0 1,238 1, 238 

U.S. Branches of Foreign Banks ..... ......................... ........... 51 11,346 3,818 1,895 0 1,895 

Total FDIC-Insured Institutions ................................... ..... .... 12,655 5,032,647 3,616,551 1,896,060 692,626 2,588,686 . . *Excludes one self-hqu1datmg savings mst1tut1on with less than $1 million in SAIF-msured deposits . 

** Includes $431 .9 billion in foreign office deposits, which are uninsured. 

SAIF Domestic Deposits 

March 31 , 1989 - December 31 , 1994 

$ Billions 

1,000 

900 

800 Sasser Institutions 

700 -----

Oakar Deposits 600 

500 

400 All Other Institutions 

300 

200 

100 

0 

12/89 12/90 12/91 12/92 12/93 12/94 

($ Billions) 

Sasser Institutions $0 $2.8 $12.0 $28.8 $43.5 $52.8 

180.1 Oakar Deposits (BIF-members) 2.1 34.0 70.4 77.4 139.8 

RTC Conservatorships 89.7 67.8 37.2 31 .5 17.9 1.2 

All Other Institutions 858.5 773.1 700.6 622.8 528.2 486.7 

$8TT.7 $760.5 $729.4 $720.8 Total $950.3 $820.2 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 16 Fourth Quarter, 1994 
TABLE 1-C. Selected Indicators, All FDIC-Insured Institutions* 

(dollar figures In m/1/lons) ....____1_9_9_4___ _ 1_9_9_3_ ___ ___ 1992 _ __1991 _ 1990

Number of institutions reporting ....... .. ................................ .. 12,602 13,220 13,852 14,482 15,158 

Total assets ................ ......... ......... .... ....................... .......... . $5,019,308 $4,707,078 $4,535,890 $4,543 ,642 $4,648 ,642 

Total depostts......... .. .. . ....................................... . 3,611 ,494 3,528,476 3,527,044 3,594,303 3,637 ,267 

Number of problem institutions.... ..................................... .. 318 572 1,063 1,426 1,492 

Assets of problem instttutions (in billions) ........................... . $73 $334 $592 $819 $640 

Number of failed/assisted institutions ............................... .. . 15 50 181 271 382 

Assets of failed/assisted institutions (in billions .............. .. .. $1 .57 $9.67 $88 $142 $145 

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

(dollar figures In m/11/ons) Preliminary 

4th Quarter 3rd Quarter 4th Quarter % Change 

1994 1994 1993 93:4-94:4 

Number of institutions reporting ........................................ ... ... . 12,602 12,773 13,220 -4.7 

Total employees (full-time equivalent) .......... ......... ... .. .. ... ... .... . 1,749,525 1,754,478 1,780,097 -1.7 

CONDITION DATA 

Total assets ..... .. ........... ... ......................... ..... .................. ....... . $5,019,308 $4,929,099 $4,707,078 6.6 

Loans secured by real estate ................... ....... .... ..... .... .... . 1,600,602 1,565,418 1,518,397 5.4 

1-4 Family residential. ................................................. . . 1,036,836 1,006,781 971 ,626 6.7 

Home equity loans ................ .... ........ .... ... .. .. .............. . . 93,207 92,082 90,462 3.0 

Multfamily residential property ...... .. .... .. ..... .... ... .... ....... . 94,598 94,289 93 ,976 0.7 

Commercial real estate ................ ......................... ... ..... . 335,439 331,960 324,011 3.5 

Construction , development and land ... ...................... ... . 84,536 84,662 85,438 -1 .1 

Other real estate loans .............. ... ................................ . 49,193 47,727 43 ,345 13.5 

Commercial & industrial loans ....... .. .... ................ .. ........... . 599,014 584,916 548,399 9.2 

Loans to individuals ....... ......... .... .... ................................. . 525,747 499,466 456,617 15.1 

Credit cards & related plans ... ......... ......... ...................... . 195,963 178,670 163,866 19.6 

Other loans & leases ................. ................ .... .................. . . 292,165 280,952 277,377 5.3 

Less: Unearned income & contra accounts..... ..... ....... .. ... . 16,547 16,902 16,012 3.3 

Total loans & leases ........................ .. ... ... .. ... ...... ..... .... .. ..... . 3,000,980 2,913,851 2,784,778 7.8 

Less: Reserve for losses ............. ..... .. .... ... .... ....... .... ... .. ..... . 59 ,773 60,502 61,418 -2.7 

Net loans & leases.... ......... .................. . ... .... ... .. ... ..... ..... ...... . 2,941 ,208 2,853 ,349 2,723 ,360 8.0 

Securities ..... ..... .. ......... ... ....... .......... ... ...... ... .... .. ....... .......... . 1,113,220 1,133,032 1,112,371 

Other real estate owned..... ................................. ................ . 13,997 16,985 23 ,906 -41 .5 

Goodwill and other intangibles ........ .. ... ................................ . 29,731 28,338 24,003 23 .9 

All other assets ................... ... .... ....... .... .............. ..........•....... 921 ,151 897,396 823 ,437 

Total liabiltties and capital. .... ............. .. ..................... .............. . 5 ,019,308 4,929,100 4,707,078 6.6 

Depostts .... ... .................... ..................... .... .... ......... .... .......... . 3 ,611,494 3,541 ,169 3,528,476 2.4 

Other borrowed funds ....... .............. ....... ..... ....... .... .......... .... . . 769,461 736,525 631 ,904 

Subordinated debt . .. ... ......................................................... . 43,1 42 41,086 39,905 8.1 

All other liabilities... . .................................. ....... ...... .. .. . 202,978 217,613 131 ,847 

Equity capttal. ... .... .. .. ... .... .... .... ..... ..... ..... .............................. . 392,233 392,706 374.,946 

Loans and leases 30-89 days past due......... ........... .............. . 36,682 34,322 38,674 -5.2 

Noncurrent loans and leases ... ..................... .... ...................... . 40,247 44,150 56,130 -28.3 

Restructured loans and leases ............. ..... ....................... .. ... .. 13,675 14,410 20,475 -33 .2 

Direct and indirect investments in real estate ...................... ... . 1,024 1,096 1,298 -21 .1 

Mortgage-backed securities ....... .. .................. ......... ... ........ .... . 541 ,190 547 ,289 535,425 

Earning assets ....................... ........... ... ... .......... ..... .... ........... . . 4,412,023 4,329,046 4,220,929 4.5 

Unused loan commitments ...... ...... ...... .. ........ ... .... .. ............. ... . 1,846,387 1,761,232 1,552,931 18.9 

Including RTC conservators hips and /BA 's: 

Estimated BIF-insured depostts .. ...... ... ... ... ..... ... ......... .... .. ... . 1,896,060 1,888,039 1,904,920 -0.5 

Domestic deposits (reflects Oakar adjustments) ............. .. 2,463,813 2,427,002 2,490,816 -1 .1 

BI F balance (unaudited figures) .. ... .................... ........... ... . 21,848 19,359 13,122 66.5 

BIF coverage ratio(%)****.. ............... .. ... ......................... .. 1.15 1.03 0.69 

Estimated SAIF-insured deposits ........................................ . 692,626 687,176 698,455 -0.8 

Domestic deposits (reflects Oakar adjustments) ............. .. 720,823 716,320 729,164 -1.1 

SAIF balance (unaudtted figures) ........ .. ...................... .... . . 1,937 2,011 1,156 67.6 

SAIF coverage ratio(%)**** ... ......... .. ................ . 0.28 0.29 0.17 

Estimated FDIC-insured deposits , BIF and SAIF. 2 ,588,686 2 ,575,215 2,603 ,375 -0.6 

Preliminary Preliminary 

Full Year Full Year 4th Quarter 4th Quarter %Change 

INCOME DATA 1994 1993 %Change 1994 1993 93 :4-94:4 

Total interest income .. .................................. . $321 ,313 $311 ,198 3.3 $85,878 $79 ,352 8.2 

Total interest expense ......... ... .... .. ... ... ..... .......... ... . 144,676 140,263 3 .2 40,471 35,563 13.8 

Net interest income ............ ..................... ..... .... .. . 176,637 170,935 3.3 45,407 43 ,789 3.7 

Provision for loan losses ...................................... . 13,333 21,123 -36.9 3,456 5,048 -31 .5 

Total noninterest income................................. ..... . 82,460 82,857 -0.5 21 ,510 22,400 -4.0 

Total noninterest expense ..... ............ ..... .. ... .. .... ... . 167,414 164,587 1.7 44,533 43,289 2.9 

Securities gains (losses) ...... .......................... ...... . (598) 3,460 N/M (994) 446 N/M 

Applicable income taxes...... ............ .... ................ .. 26,207 23,696 10.6 5,533 6,036 -8.3 

Extraordinary gains, net. ... ... ........ .. .... ... .... .... . (452) 2,066 N/M 10 161 -93.9 

Net income.. .......... ......... .......... ..... ............. ........ . 51,092 49,913 2.4 12,411 12,408 0.0 

•Excludes 1nst1tut1ons in RTC conservatorsh1p, one self-hqu1dat1ng savings 1nst1tut1on, insured branches of foreign banks (IBA's), unless indicated otherwise. 

...New accounting rules and/or reporting detail became effective March 31, 1994. See Notes to Users, pp. 21·23 . N/M-Not meaningful 

••..coverage ratios ref lect the insurance fund balance as a percentage of estimated insured deposits. 

FDIC Quarterly Banking Profile 

Fourth Quarter, 1994 17 All FDIC-Insured Institutions 
TABLE 1-0. Selected Indicators, BIF-Member De ository Institutions* 

(dollar figures in millions) 1--___1_9_94_____1_9.:_93=--____1_99'----'2=--____1.:_99=---1=-------'-19'---'9---'0-

Number of institutions reporting ......................................... . 10,758 11,291 11,813 12,305 12,791 

Total assets .................................................................... . $4,246,966 $3,949,720 $3,711,624 $3,660,455 $3,646,838 

Total deposits ................................................................ .. 3,061,353 2,951,982 2,873,178 2,881,769 2,861,441 

Number of problem institutions .......................................... .. 264 472 856 1,089 1,046 

Assets of problem institutions (in billions) .......................... .. $42 $269 $464 $610 $409 

Number of failed/assisted institutions ................................. . 13 41 122 127 169 

Assets of failed/assisted institutions (in billions) ................ .. $1.43 $3.54 $44 $63 $15 

TABLE 11-0. Selected A~:rnregate Condition and Income Data, BIF-Member Depository Institutions* 

(dollar figures in millions) Preliminary 

4th Quarter 3rd Quarter 4th Quarter % Change 

1994 1994 1993 93:4-94:4 

Number of institutions reporting ............................................. .. 10,758 10,905 11,291 -4.7 

Commercial banks ................................................................ . 10,371 10,517 10,887 -4.7 

Savings institutions ............................................................... . 387 388 404 -4.2 

Total employees (full-time equivalent) .... .. .............................. . 1,544,033 1,543,569 1,556,408 -0.8 

CONDITION DATA 

Total assets ....................................... ..................................... . $4,246,966 $4,164,978 $3,949,720 7.5 

Loans secured by real estate, total ...................................... .. 1,136,107 1,109,148 1,068,972 6.3 

1-4 Family residential. ....................................................... .. 668,534 649,066 622,115 7.5 

Multifamily residential property ........................................... . 51,078 49,837 48,184 6.0 

Commercial real estate ....................................................... . 300,861 296,493 286,566 5.0 

Construction, development and land .................................. . 66,535 66,115 68,818 -3.3 

Commercial & industrial loans ............................................... 592,929 579,292 542,881 9.2 

Reserve for losses .............................................................. . 54,382 54,886 55,407 -1.9 

Total deposits ....................................................................... . 3,061,353 2,984,350 2,951,982 3.7 

Estimated insured deposits .................................................. . 2,063,608 2,043,727 2,037,604 1.3 

BIF-insured deposits (estimated) ........................................ . 1,883,490 1,877,117 1,897,809 -0.8 

SAIF-insured deposits (estimated) ..................................... . 180,118 166,610 139,795 28.8 

Noncurrent loans and leases ................................................ . 33,870 36,989 47,555 -28.8 

Other real estate owned........................... ............................ . 10,914 13,559 18,499 -41.0 

Equity capital. ....................................................................... . 332,413 332,350 316,310 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions: 

Well capitalized ........................................... .......................... . 10,583 10,720 11,052 -4.2 

Adequately capitalized ................. ......................................... . 138 149 182 -24.2 

Undercapitalized .......................... .... .. ................................... . 23 23 20 15.0 

Significantly undercapitalized ........................................... .... . 10 12 23 -56.5 

Critically undercapitalized ..................................................... . 4 14 -71.4 

Total assets : 

Well capitalized ..................................................................... . $4,142,534 $4,004,593 $3,797,959 9.1 

Adequately capitalized .......................................................... . 99,194 155,110 140,946 -29.6 

Undercapitalized ................................................................... . 4,209 3,899 1,856 126.8 

Significantly undercapitalized .............................................. . 557 1,373 5,069 -89.0 

Critically undercapitalized ............... ., .. .................................. . 472 3 3,891 -87.9 

Preliminary Preliminary 

Full Year Full Year 4th Quarter 4th Quarter %Change 

INCOME DATA 1994 1993 %Change 1994 1993 93:4-94:4 

Net interest income ............................................. .. $154,655 $147,834 4.6 $39,896 $38,109 4.7 

Provision for loan losses ..................................... .. 11,551 18,279 -36.8 3,036 4,312 -29.6 

Net income .......................................................... .. 46,935 44,531 5.4 11,338 11,351 -0.1 

Net charge-offs ..................................................... . 12,067 19,106 -36.9 3,367 5,302 -36.5 

Number of institutions reporting net losses ......... .. 409 562 -27.2 981 1,183 -17.1 

*Excludes insured branches of foreign banks. 

**New accounting rules and/or reporting detail became effective March 31, 1994. See Notes to Users, pp. 21-23. 

FDIC Quarterly Banking Profile 

BIF-Member Depository Institutions 18 Fourth Quarter, 1994 
TABLE 1-E. Selected Indicators, SAIF-Member Depository Institutions* 

(dollar figures in millions) 

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

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

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

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

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

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

Assets of failed/assisted institutions (in billions) .......... ... .... . 

f------ -1_9_94____ _1_9_93_ _ 

1,844 1,929 

$772,342 $757,358 

550,141 576,493 

54 100 

$31 $65 

2 9 

$0.14 $6.13 

_______ 1992 _ 1991 _ 1990 

2,039 2,177 2,367 

$824,266 $883,187 $1,001,804 

653,865 712,533 775,826 

207 337 446 

$128 $209 $231 

59 144 213 

$44 $79 $1 30 

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

(dollar figures in millions) Preliminary 

4th Quarter 3rd Quarter 4th Quarter % Change 

1994 1994 1993 93:4-94:4 

Number of institutions reporting .. ..... ..... .... ... ......... .................. . 1,844 1,868 1,929 -4.4 

Commercial banks .......................... ..... .... .. ........................... . 79 75 71 11 .3 

Savings institutions ......... ......................... ... ........ ............. ..... . 1,765 1,793 1,858 -5. 0 

Total employees (full-time equivalent) .... .. .............................. . 205,492 210,909 223,689 -8. 1 

CONDITION DATA 

Total assets ... ........... ...... ........................... .................. ... ...... .. . $772,342 $764,121 $757,358 2.0 

Loans secured by real estate, total. .... ... .... ........................... . 464,494 456,271 449,425 3.4 

1-4 Family residential ....................... .. ................ .. .. ........ .... . 368,303 357,716 349,511 5.4 

Multifamily residential property.. ........ ... ............ ...... .. .......... . 43,520 44,452 45,792 -5. 0 

Commercial real estate.. .... .... ...... .... ....... .... ...... ..... .. ..... ... .. . . 34,577 35,466 37,445 -7.7 

Construction, development and land ................... ... ...... ..... . . 18,001 18,547 16,621 8.3 

Commercial & industrial loans ........ ... ................ ........ ........... . 6,085 5,624 5,518 10. 3 

Reserve for losses .... .. ....................... ... .... ... .. ... ........ ...... .... . 5,391 5,616 6,011 -1 0.3 

Total deposits ......................... ......... ................................ ..... . 550,141 556,819 576,493 -4.6 

Estimated insured deposits ............... ....................... .... ........ . 521,946 527,678 545,784 -4.4 

BIF-insured deposits (estimated) .... .......... .. ... ................. .. .. . 10,675 8,738 4,807 122. 1 

SAIF-insured deposits (estimated) ............. ............. ..... ...... . 511,270 518,940 540,977 -5. 5 

Noncurrent loans and leases ... ............................. ......... ....... . 6,378 7,160 8,574 -25.6 

Other real estate owned... ....... ...... ....... ................................ . 3,084 3,426 5,407 -43.0 

Equity capital ...................... ............. ..... ..... ................. .......... . 59,820 60,357 58,635 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions : 

Well capitalized ............ ... ........... .................... ....................... . 1,743 1,773 1,821 -4.3 

Adequately capitalized ... ...... ........... .... ........ ........ ............... .. . 91 83 93 -2.2 

Undercapitalized .... ... ... ...... ................................. ........ ........... 5 6 12 -58.3 

Significantly undercapitalized ................ ... ................ ... .... ..... . 4 5 300.0 

Critically undercapitalized .... .. .............. ..................... ....... ..... . 1 2 -50.0 

Total assets: 

Well capitalized .............................................. ... .. .............. .... . $702,525 $680,245 $664,415 5.7 

Adequately capitalized ... ..................... .. ..... ..................... ...... . 65,316 79,095 87,373 -25.3 

Undercapitalized .......... ...... ................. .. .............. .. .......... ...... . 1,566 1,408 3,301 -52 .6 

Significantly undercapitalized ...... ... ..... .......... ....... ........ ...... . . 1,206 3,329 107 N/M 

Critically undercapitalized ................................ ... ....... .... .. ..... . 1,730 44 2,162 -20.0 

Preliminary Preliminary 

Full Year Full Year 4th Quarter 4th Quarter %Change 

INCOME DATA 1994 1993 %Change 1994 1993 93:4-94:4 

Net interest income............. ............ .. ........... ..... .... $21 ,982 $23,101 -4.9 $5,511 $5,680 -3.0 

Provision for loan losses.................. ..... ................ 1,782 2,844 -37.3 420 736 -43. 0 

Net income................ .. .............. ............................ 4,157 5,381 -22 .8 1,073 1,057 1.5 

Net charge-offs...................................................... 2,212 2,435 -9.2 454 732 -37.9 

Number of institutions reporting net losses.... ... .... 136 103 32.0 168 163 3.1 

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

** New accounting rules and/or reporting detail became effective March 31, 1994. See Notes to Users, pp. 21-23. 

FDIC Quarterly Banking Profile 

Fourth Quarter, 1994 19 SAIF-Member Depository Institutions 
Number of FDIC - Insured 11

Problem11 Institutions 

1990 - 1994 

Number of Institutions 

2,000 - Commercial Banks 

3⁄4Wii@W@, Savings Institutions 

1,492 1 426 

1,500 ' 

1,000 

433 500 

0 

12/90 12/91 3/92 6/92 9/92 12/92 3/93 6/93 9/93 12/93 3/94 6/94 9/94 12/94 

Savings Institutions 480 410 381 349 318 276 255 209 169 146 118 95 84 71 

Commercial Banks 1,012 1,016 981 956 909 787 671 580 496 426 383 338 293 247 

Assets of FDIC - Insured 11Problem11 Institutions 

1990 - 1994 

$ Billions ~-----------------------------~ 1,000 - Commercial Banks 

$819 $809 rSAL+J Savings Institutions 

800 

600 

400 

200 

0 

12/90 12/91 3/92 6/92 9/92 12/92 3/93 6/93 9/93 12/93 3/94 6/94 9/94 12/94 

Savings Institutions 298 291 274 245 223 184 167 128 103 92 89 71 59 39 

Commercial Banks ~ ~ ~ ~ ~ ~ ~ ~ w ~ ~ ~ ~ ~ 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 20 Fourth Quarter, 1994 
NOTES TO USERS 

This publication contains financial data and other information 

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

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

information presented in the FDIC Quarterly Banking Profile is 

divided into the following groups of institutions: 

FDIC-Insured Commercial Banks 

(Tables I-A through V-A.) 

This section covers commercial banks insured by the FDIC 

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

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

the three federal commercial bank regulators (the Board of 

Governors of the Federal Reserve System, the FDIC or the 

Office of the Comptroller of the Currency). 

FDIC-Insured Savings Institutions 

(Tables 1-8 through V-8.) 

This section covers savings institutions insured by either BIF 

or SAIF that operate under state or federal banking codes 

applicable to thrift institutions, except for one self-liquidating 

institution primarily funded by the FSLIC Resolution Fund 

(FRF). Savings institutions that have been placed in Resolution Trust Corporation conservatorship are also excluded 

from these tables while in conservatorship. The institutions 

covered in this section are regulated by and submit financial 

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

Office of Thrift Supervision (OTS). 

FDIC-Insured Institutions by Insurance Fund 

(Tables I-C through 11-E.) 

Summary balance-sheet and earnings data are provided for 

commercial banks and savings institutions according to 

insurance fund membership. BIF-member institutions may 

acquire SAIF-insured deposits, resulting in institutions with 

some deposits covered by both insurance funds. Also, SAIF 

members may acquire BIF-insured deposits. The insurance 

fund membership does not necessarily reflect which fund 

insures the largest percentage of an institution's deposits. 

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

each include deposits from both insurance funds. Depository institutions that are not insured by the FDIC through 

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

Banking Profile. U.S. branches of institutions headquartered in foreign countries and non-deposit trust companies 

are not included. Efforts are made to obtain financial reports 

for all active institutions. However, in some cases, final 

financial reports are not available tor 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) Ca// Reports and the OTS Thrift 

Financial Reports submitted by all FDIC-insured depository 

institutions. This information is stored on and retrieved 

from the FDIC's Research Information System (RIS) data 

base. 

FDIC Quarterly Banking Profile 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting 

and accounting requirements of the FFIEC Ca// Reports. 

The detailed schedules of the Thrift Financial Report reflect 

the consolidation of the parent thrift with all finance subsidiaries. All other subsidiaries are reported as investments on 

an equity basis or a cost basis. Some accounting differences exist, such as asset sales with recourse, for which 

the data necessary to reconcile these differences are not 

reported. 

All asset and liability figures used in calculating performance 

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

interim periods, divided by the total number of periods). For 

"pooling-of-interest" mergers, the assets of the acquired 

institution(s) are included in average assets since the yearto-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. Tables Ill and IV do not provide growth 

rates for the "Asset Size Distribution" since many institutions migrate between size groups. 

Asset Migrations 

All data are collected and presented based on the location 

of each reporting institution's main office. When a main office 

is relocated to another state, adjustments to prior-period 

data may be made to more accurately reflect geographic 

growth rates. In other situations, no adjustments are possible. For example, reported data may include assets and 

liabilities located outside of the reporting institution's home 

state. Also, institutions may change their charters, resulting 

in an inter-industry migration, e.g. savings institutions can 

convert to commercial banks. These situations can affect 

state and regional totals. 

RECENT ACCOUNTING CHANGES 

FASS Statement 115, "Accounting for Certain Investments 

in Debt and Equity Securities." Requires that securities 

that are not held in trading accounts be measured at 

either amortized cost or fair (market) value, depending 

on their classification category. For additional details, 

see "Notes to Users," First Quarter, 1994, Quarterly 

Banking Profile. 

FASB Interpretation 39, "Offsetting of Amounts Related to 

Certain Contracts." Covers fair value amounts recognized 

as assets and liabilities on the balance sheet for off-balancesheet derivative contracts under which the amounts to be 

received or paid or items to be exchanged depend on future 

events or other factors (e.g., future and forward contracts, 

interest-rate swaps, exchange-rate swaps, and other conditional and exchange contracts). For additional details, see 

"Notes to Users," First Quarter, 1994, Quarterly Banking 

Profile. 

Fourth Quarter, 1994 21 Notes to Users 
DEFINITIONS (in alphabetical order) 

All other assets - total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

estate, investment in unconsolidated subsidiaries, customers' liability on acceptances outstanding, assets held in 

trading accounts, federal funds sold, securities purchased 

with agreements to resell, and other assets. Beginning 

3/31/94, FASB Interpretation 39 limited the netting of related 

trading assets and liabilities, which had the effect of increasing the amount of trading account assets reported. 

All other liabilities - bank's liability on acceptances, limited-life preferred stock, and other liabilities. Effective 

3/31/94, includes revaluation losses on assets held in trading accounts. 

BIF-insured deposits (estimated) - the amount of deposits in accounts of less than $100,000 insured by the BIF. 

For SAIF-member "Oakar" institutions, it represents the 

adjusted attributable amount acquired from BIF members. 

Capital category distribution - each institution's capital 

category is calculated or estimated from its financial report 

and does not reflect supervisory upgrades or downgrades: 

Total Tier1 

Risk-Based Risk-Based Tier1 Tangible 

Capital• Capital• Leverage Equity 

Well-capitalized ;:,,10% and :?6% and ;:,,5% 

Adequately capitalized :?8% and :?4% and :?4% 

Undercapitalized <8% or <4% or <4% 

Significantly 

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

Critically undercapitalized - :5:2% 

•As a percentage of risk-weighted assets. 

Construction and development loans - includes loans 

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

land acquisition and development. 

Core capital - common equity capital plus noncumulative 

perpetual preferred stock plus minority interest in consolidated subsidiaries, less goodwill and other ineligible intangible assets. The amount of eligible intangibles (including 

mortgage servicing rights) included in core capital is limited 

in accordance with supervisory capital regulations. 

Cost of funding earning assets - total interest expense 

paid on deposits and other borrowed money as a percentage of average earning assets. 

Direct and indirect investments in real estate-excludes 

loans secured by real estate and property acquired through 

foreclosure. 

Earning assets - all loans and other investments that earn 

interest or dividend income. 

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

sum of all deposit balances in accounts of less than 

$100,000 plus the number of accounts with balances greater 

than $100,000 multiplied by $100,000. 

Failed/assisted institutions - An institution fails when 

regulators take control of the institution, placing the assets 

and liabilities into a bridge bank, conservatorship, receivership, or another healthy institution. This action may require 

the FDIC - or the RTC - to provide funds to cover losses. 

An institution is defined as "assisted" when the institution 

remains open and receives some insurance funds in order 

to continue operating. 

FHLB advances - borrowings from the Federal Home 

Loan Bank (FHLB) reported by institutions that file a Thrift 

Financial Report. Institutions that file a Ca// Report do not 

report borrowings ("advances") from the FHLB separately. 

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

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 governmentsponsored or private enterprises. Effective 3/31/94, the full 

implementation of FASS 115 meant that a portion of banks' 

mortgage-backed securities portfolio is now reported based 

upon fair (market) values; previously, all mortgage-backed 

securities not held in trading accounts were reported at 

either amortized cost or lower of cost or market. 

Net charge-offs - total loans and leases charged off 

(removed from balance sheet because of uncollectibility), 

less amounts recovered on loans and leases previously 

charged off. 

Net interest margin - the difference between interest and 

dividends earned on interest-bearing assets and interest 

paid to depositors and other creditors, expressed as a 

percentage of average earning assets. No adjustments are 

made for interest income that is tax exempt. 

Net operating income - income excluding discretionary 

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

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

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

in nonaccrual status. Noncurrent debt securities and other 

assets were not included prior to March 1991. 

Noncurrent loans & leases - the sum of loans and leases 

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

Number of institutions reporting - the number of institutions that actually filed a financial report. 

Off-balance-sheet derivatives - represents the sum of 

the following: interest-rate contracts, defined as: the notional value of interest-rate swaps, futures and forward 

FDIC Quarterly Banking Profile 

Notes to Users 22 Fourth Quarter, 1994 
contracts and option contracts; foreign-exchange-rate contracts and commodity 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 underlying 

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

variety of underlyings, including the 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 underlying 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 underlying 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 of the underlying (notional principal) by specified reference rates or prices. Except for 

currency swaps, the notional principal is used to calculate 

each payment but is not exchanged. 

Other borrowed funds - federal funds purchased, securities sold with agreements to repurchase, demand notes 

issued to the U.S. Treasury, other borrowed money, mortgage indebtedness and obligations under capitalized 

leases. Effective 3/31/94, includes newly-reported item 

''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. 

Restructured loans and leases - loan and lease financing 

receivables with terms restructured from the original contract. Excludes restructured loans and leases that are not 

in compliance with the modified terms. 

Return on assets - net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total assets. The basic yardstick of bank profitability. 

Return on equity - net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total equity capital. 

Risk-weighted assets - assets adjusted for risk-based 

capital definitions which include on-balance-sheet as well 

as off-balance-sheet items multiplied by risk-weights that 

range from zero to 100 percent. Aconversion factor is used 

to assign a balance sheet equivalent amount for selected 

off-balance-sheet accounts. 

SAIF-insured deposits (estimated) - the amount of deposits in accounts of less than $100,000 insured by the SAIF. 

For BIF-member "Oakar" institutions, it represents the adjusted attributable amount acquired from SAIF members. 

Securities - excludes securities held in trading accounts. 

Effective 3/31 /94, the full implementation of FASB 115 meant 

that a portion of banks' securities portfolios is now reported 

based upon fair (market) values; previously, all securities not 

in held trading accounts were reported at either amortized 

cost or lower of cost or market. 

Troubled real estate asset rate - noncurrent real estate 

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

estate loans and other real estate owned. 

Unused loan commitments - includes credit card lines, 

home equity lines, commitments to make loans for construction, loans secured by commercial real estate, and unused 

commitments to originate or purchase loans. 

Volatile liabilities - the sum of large-denomination time 

deposits, foreign-office deposits, federal funds purchased, 

securities sold under agreements to repurchase, and other 

borrowings. Beginning 3/31/94, new reporting detail permits 

the exclusion of other borrowed money with original maturity 

of more than one year; previously, all other borrowed money 

was included. Also beginning 3/31 /94, the newly-reported 

item "Trading liabilities," less revaluation losses on assets 

held in trading accounts, is included. 

Yield on earning assets - total interest, dividend and fee 

income earned on loans and investments as a percentage 

of average earning assets. 

FDIC Quarterly Banking Profile 

Fourth Quarter, 1994 23 Notes to Users