Donna Tanoue, Chairman 

Third Quarter 1999 

Division of Research 

& Statistics 

Don Inscoe 

Associate Director 

Statistics Branch 

(202) 898-3940 

Tim Critchfield 

(202) 898-8557 

Jim McFadyen 

(202) 898-7027 

Ross Waldrop 

(202) 898-3951 

COMMERCIAL BANKING PERFORMANCE—THIRD QUARTER, 1999 

• Industry Earnings Soar To Record $19.4 Billion 

• Returns On Assets, Equity Reach All-Time Highs 

• Absence Of Merger-Related Charges Limits Overhead Expense 

• Noninterest Income Rebounds 

• Asset Growth Slows 

Insured commercial banks earned $19.4 billion in the third quarter of 1999, eclipsing the 

previous quarterly record of $18.0 billion, set 

in the first quarter of this year. Third-quarter 

earnings represented a $4.4-billion (29.1 percent) increase from the third quarter of 1998, 

when weakness in overseas earnings limited 

industry profits. Growth in revenues, particularly noninterest income, was strong, while 

overhead expenses remained under control. 

The industry’s “efficiency ratio,” which measures the proportion of net operating revenue 

that is absorbed by overhead expenses, 

reached an all-time best of 56.45 percent in 

the third quarter. The average return on 

assets (ROA) reached 1.42 percent in the 

third quarter, eclipsing the previous quarterly 

record of 1.32 percent that was achieved in 

the first quarter of this year and in the third 

quarter of 1995. The average return on equity (ROE) also set a new quarterly record, rising to 16.62 percent from 14.49 percent in the 

second quarter and 13.31 percent a year ago 

(the previous record was 16.31 percent, set in 

the third quarter of 1995). The greatest improvement in profitability occurred at some of 

the largest banks, but prosperity was fairly 

widespread throughout the industry. More 

than one-third of all insured commercial banks 

had an ROA equal to or higher than the industry average. Almost two out of every three 

banks (66 percent) had an ROA of one percent or higher for the quarter, but only 49 percent had higher ROAs than a year ago. For 

the first nine months of 1999, commercial 

bank earnings totaled $54.3 billion, an 

increase of $7.2 billion (15.3 percent) over the 

same period in 1998. Noninterest income 

was up by 18.9 percent, while noninterest 

expenses were up by only 7.6 percent, and 

loss provisions were down by 5.2 percent. 

The average ROA for the first nine months of 

1999 was 1.33 percent; a year ago, it was 

1.22 percent. 

QUARTERLY NET INCOME, 

1995–1999 $ Billion 

19.4 Securities and Other Gains, Net 18.0 

Net Operating Income 17.0 

15.9 16.1 

14.514.614.715.3 15.014.8 

13.8 13.8 13.7 13.2 12.0 12.0 12.0 11.1 

0 

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

1995 1996 1997 1998 1999 

The improvement in both noninterest income 

and noninterest expense was magnified by 

the absence of specific adverse events that 

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

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

publicinfo@fdic.gov. 

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

from the FDIC’s Institution Directory (I.D.) System on this Web site. 
QUARTERLY EFFICIENCY RATIOS, QUARTERLY NET INTEREST MARGINS, 

1996–1999 1995–1999 Efficiency Ratio (%) Net Interest Margin (%) 

60 

70 

Assets > $100 Million 

Assets < $100 Million 

67.20 

56.02 

3.5 

4.0 

4.5 

5.0 

5.5 

4.11 

Assets < $100 Million 

Assets > $100 Million 

4.50 

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

1996 1997 1998 1999 

affected results in earlier quarters. Noninterest 

income totaled $36.9 billion, an increase of $2.4 billion (6.9 percent) from the second quarter, and a 

$7.3-billion (24.5 percent) increase from a year ago. 

Both of the earlier quarters had specific weaknesses that the most recent quarter lacked. Trading revenues were $1.6 billion lower a year ago, when 

problems in overseas markets limited banks’ trading 

profits, while in the second quarter of 1999, noninterest income was held down by revaluation losses 

at one large bank. Fee income growth remained 

strong in the third quarter, and noninterest income 

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 

0.0 

0.4 

0.8 

1.2 

1.6 

5 Highest Values 

Sep. 1999 1.42 

Mar. 1999 1.32 

Sep. 1995 1.32 

Sep. 1993 1.28 

Jun. 1996 1.27 

Commercial bank assets increased by only $38.8 

billion (0.7 percent) during the third quarter; and 

were $238.8 billion higher (4.5 percent) than a year 

ago. This is the lowest 12-month growth rate in 

industry assets in the past five years. Loans 

increased by only $49.5 billion (1.5 percent) during 

the quarter, led by real estate loans, which grew by 

$55.5 billion (4.0 percent. Commercial and industrial loans increased by only $11.2 billion, the smallest 

quarterly increase in two years. Securitization activity caused consumer loans to decline for the third 

FDIC Quarterly Banking Profile 

also received a boost from a $1-billion gain on the 

sale of assets at one bank. Noninterest expenses in 

earlier quarters were elevated by merger-related 

charges and other one-time expenses that had no 

counterparts in the third quarter. Noninterest 

expenses of $50.0 billion were $852 million (1.7 percent) lower than in the second quarter, and were up 

by only $2.6 billion (5.4 percent) from a year ago. 

Bank earnings were also helped by moderate provisions for credit losses. Although loss provisions 

were $357 million (7.2 percent) higher than in the 

second quarter, they were $1.2 billion (19.0 percent) lower than a year ago. Provisions for credit 

losses in foreign operations declined to their lowest 

level in two years. Only $409 million of the $5.3 billion in total loss provisions in the third quarter was 

earmarked for foreign operations. In the second 

quarter, foreign loss provisions totaled $526 million; 

in the third quarter of 1998, the foreign loss provision was $677 million. 

Net interest income was up $1.1 billion (2.3 percent) 

from the second quarter, and was $2.6 billion (5.6 

percent) above the level of a year ago. The industry’s net interest margin rose for the second consec1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 

1995 1996 1997 1998 1999 

utive quarter, to 4.13 percent from 4.07 percent, and 

was slightly above the 4.12 percent average of a 

year ago. More than two out of every three banks 

(68 percent) saw their margins increase from second-quarter levels. Margins at banks with less than 

$100 million in assets were higher than in the second quarter, but were below year-ago levels. At 

larger banks, margins were higher than in both the 

previous and year-ago quarters. 

QUARTERLY RETURN ON ASSETS, 

ROA (%) 1990–1999 

FDIC-Insured Commercial Banks 2 Third Quarter 1999 
quarter in a row, falling by $4.2 billion (0.8 percent). 

Credit-card loans in banks’ loan portfolios fell by 

$3.7 billion, as credit-card loans securitized and sold 

off-balance-sheet increased by $12.9 billion. Fed 

funds sold and repurchase agreements declined by 

$34.1 billion. 

Deposits increased by $21.7 billion during the quarter, with foreign offices accounting for $8.7 billion of 

the increase. Noninterest-bearing deposits declined 

by $19.3 billion (2.7 percent), as interest-bearing 

deposits grew by $41.0 billion (1.4 percent). Fed 

funds purchased and securities sold under repurchase agreements declined by $18.8 billion (4.2 

percent), while Federal Home Loan Bank (FHLB) 

advances rose by $21.5 billion (17.6 percent). Over 

the past 12 months, FHLB advances to commercial 

banks have grown by $55.0 billion (62.1 percent), 

rising from 1.8 percent of all commercial bank liabilities a year ago to 2.8 percent at the end of the third 

quarter. During that time, the number of commercial 

banks with FHLB borrowings increased from 2,966 

to 3,575. 

QUARTERLY RETURN ON EQUITY, 

1990–1999 ROE (%) 

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 

0 

5 

10 

15 

20 

5 Highest Values 

Sep. 1999 16.62 

Sep. 1995 16.31 

Sep. 1993 16.13 

Mar. 1993 16.10 

Jun. 1996 15.41 

percent of total loans. This represents a slight 

increase in the noncurrent rate from 0.94 percent at 

the end of the second quarter. During the 12 months 

ending September 30, noncurrent loans increased 

by $2.8 billion (9.5 percent). A year ago, the industry’s noncurrent loan rate was 0.94 percent, which is 

the lowest level for this ratio in the 17 years that 

banks have reported noncurrent loan data. 

Reserves for credit losses increased by $632 million 

(1.1 percent) in the quarter, but are up by only $960 

million (1.7 percent) over the past 12 months. The 

industry’s loss reserves now stand at 1.73 percent 

of total loans, the lowest level for this ratio since the 

first quarter of 1987. The “coverage ratio” of 

reserves to noncurrent loans declined loans during 

the quarter from $1.85 to $1.80 in reserves for every 

$1.00 of noncurrent loans. A year earlier, commercial banks held $1.94 in reserves for every $1.00 of 

noncurrent loans. Equity capital increased by $2.4 

billion (0.5 percent) during the quarter, to $468.6 billion, or 8.51 percent of commercial bank assets. 

This is a slight decline from 8.53 percent at the 

beginning of the quarter, owing to growth in industry 

assets. A year ago, commercial banks’ equity-toassets ratio stood at 8.68 percent. 

The number of commercial banks reporting financial 

results declined from 8,674 to 8,621 in the third 

quarter. Mergers absorbed 109 banks, and 3 banks 

failed during the quarter, while there were 59 new 

bank charters. The number of banks on the FDIC”s 

“Problem List” increased from 62 to 69 during the 

quarter, while total assets of “problem” banks fell 

from $4.7 billion to $4.2 billion. 

NONINTEREST INCOME AS A PERCENTAGE OF 

BANK REVENUE, 1984–1999 

Quarterly Noninterest Income, % of Net Operating Revenue* 

No significant deterioration in credit quality was evident during the third quarter. Net charge-offs were 

up by $254 million (5.5 percent) from the second 

quarter, but were $696 million (12.6 percent) lower 

than a year ago, when charge-offs on credit-card 

loans were $696 million higher. Net charge-offs on 

1-4 family mortgage loans were up by $115 million 

during the quarter, as the annualized net charge-off 

rate on these loans rose to 0.14 percent, from 0.09 

percent in the previous quarter and 0.07 percent a 

year ago. 

Noncurrent loans increased by $1.1 billion (3.7 percent) during the third quarter, to $32.3 billion, or 0.96 * Net operating revenue equals net interest income plus noninterest income. 

FDIC Quarterly Banking Profile 

10 

20 

30 

40 

50 

46.2 

Assets < $1 Billion 

26.8 

Assets > $1 Billion 

1985 1987 1989 1991 1993 1995 1997 1999 

Third Quarter 1999 3 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

1999* 1998* 1998 1997 1996 1995 1994 

Return on assets (%)............................................. 1.33 1.22 1.19 1.23 1.19 1.17 1.15 

Return on equity (%)............................................. 15.50 14.30 13.93 14.69 14.45 14.66 14.61 

Core capital (leverage) ratio (%).............................. 7.81 7.70 7.54 7.56 7.64 7.61 7.64 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.66 0.65 0.65 0.66 0.75 0.85 1.01 

Net charge-offs to loans (%).................................... 0.58 0.65 0.67 0.64 0.58 0.49 0.50 

Asset growth rate (%)............................................. 4.53 8.18 8.50 9.54 6.16 7.53 8.21 

Net interest margin (%).......................................... 4.07 4.09 4.07 4.21 4.27 4.29 4.36 

Net operating income growth (%).............................. 19.34 4.85 2.27 12.47 6.43 7.48 16.18 

Number of institutions reporting.............................. 8,621 8,910 8,774 9,142 9,527 9,940 10,451 

Percentage of unprofitable institutions (%).................. 6.69 5.19 6.09 4.85 4.28 3.55 3.98 

Number of problem institutions................................. 69 70 69 71 82 144 247 

Assets of problem institutions (in billions).................. $4 $5 $5 $5 $5 $17 $33 

Number of failed/assisted institutions........................ 5 3 3 1 5 6 11 

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

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

(dollar figures in millions) 

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

Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter %Change 

1999 1999 1998 98:3-99:3 

8,621 8,674 8,910 -3.2 

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

CONDITION DATA

... 1,632,245 1,623,166 1,597,759 2.2 

 Total assets..................................................................... $5,506,529 $5,467,715 $5,267,716 4.5

 Loans secured by real estate.......................................... 1,428,705 1,373,191 1,300,513 9.9

 Commercial & industrial loans.......................................... 947,213 936,058 873,968 8.4

 Loans to individuals...................................................... 530,209 534,399 555,113 -4.5

 Farm loans.................................................................. 46,537 46,017 48,206 -3.5

 Other loans & leases...................................................... 409,403 422,294 372,156 10.0

 Less: Unearned income................................................... 3,548 3,552 4,192 -15.4

 Total loans & leases......................................................... 3,358,519 3,308,407 3,145,764 6.8

 Less: Reserve for losses................................................... 58,225 57,593 57,265 1.7

 Net loans and leases...................................................... 3,300,294 3,250,813 3,088,499 6.9

 Securities........................................................................ 1,033,169 1,007,111 923,106 11.9

 Other real estate owned................................................... 2,919 2,915 3,436 -15.0

 Goodwill and other intangibles.......................................... 86,835 85,544 77,117 12.6

 All other assets............................................................... 1,083,312 1,121,331 1,175,558 -7.8 

Total liabilities and capital................................................... 5,506,529 5,467,715 5,267,716 4.5

 Noninterest-bearing deposits............................................. 689,110 708,374 655,299 5.2

 Interest-bearing deposits.................................................. 3,013,406 2,972,412 2,851,481 5.7

 Other borrowed funds...................................................... 972,919 963,131 906,027 7.4

 Subordinated debt............................................................ 75,760 74,570 68,823 10.1

 All other liabilities............................................................ 286,782 283,045 328,831 -12.8

 Equity capital.................................................................. 468,552 466,182 457,256 2.5 

Loans and leases 30-89 days past due................................. 39,407 36,962 37,747 4.4 

Noncurrent loans and leases................................................ 32,333 31,183 29,526 9.5 

Restructured loans and leases............................................. 1,310 1,486 1,949 -32.8 

Direct and indirect investments in real estate........................... 284 320 513 -44.7 

1-4 Family residential mortgages.......................................... 786,849 754,840 739,345 6.4 

Mortgage-backed securities................................................ 453,193 445,793 433,524 4.5 

Earning assets.................................................................. 4,760,826 4,727,102 4,529,594 5.1 

Long-term assets (5+ years)................................................ 1,143,864 1,092,452 926,511 23.5 

Volatile liabilities............................................................... 1,838,522 1,804,586 1,698,899 8.2 

Foreign office deposits...................................................... 602,778 594,111 554,722 8.7 

FHLB Advances (Source: FHFB).......................................... 143,542 122,043 88,574 62.1 

Unused loan commitments................................................... 3,834,474 3,724,148 3,615,172 6.1 

Off-balance-sheet derivatives............................................. 36,250,849 33,500,202 33,454,971 8.4 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

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

Qtrs 1999 Qtrs 1998 %Change 1999 1998 98:3-99:3 

$272,222 $271,192 0.4 $92,434 $92,351 0.1 

... 128,372 134,958 -4.9 43,532 46,040 -5.5

... 143,850 136,234 5.6 48,902 46,311 5.6 

... 15,606 16,462 -5.2 5,288 6,525 -19.0 

106,022 89,162 18.9 36,903 29,642 24.5 

... 150,226 139,605 7.6 49,969 47,413 5.4 

511 2,054 -75.1 -197 681 N/M 

30,245 24,819 21.9 10,934 7,641 43.1 

... -33 516 N/M 0 -11 N/M

54,273 47,080 15.3 19,417 15,044 29.1 

... 14,385 14,957 -3.8 4,833 5,529 -12.6 

... 35,869 28,419 26.2 12,879 10,091 27.6

... 54,022 45,267 19.3 19,570 14,655 33.5 

N/M - Not meaningful 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 Third Quarter 1999 
 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE III-A. First Three Quarters 1999, FDIC-Insured Commercial Banks 

FIRST THREE QUARTERS Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

... 8,621 5,241 2,989 314 77 682 1,442 1,877 2,219 1,467 934 

Total assets (in billions).................................... $5,506.5 $245.4 $743.1 $875.7 $3,642.3 $1,892.3 $1,493.8 $931.4 $373.9 $306.7 $508.5 

Total deposits (in billions).................................... 3,702.5 207.9 604.3 598.3 2,291.9 1,199.4 999.6 625.0 268.7 244.2 365.7 

Net income (in millions).................................... 54,273 1,977 7,397 9,647 35,252 17,881 14,383 8,726 4,268 2,731 6,283 

% of unprofitable institutions.............................. 6.7 9.6 2.3 1.3 1.3 10.0 11.2 4.6 3.2 5.9 11.0 

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

Performance ratios (annualized, %) 

59.0 51.8 69.2 75.5 80.5 68.3 63.9 59.6 53.4 54.7 63.2 

Yield on earning assets.................................... 7.71 7.93 8.02 7.94 7.57 7.68 7.48 7.55 8.14 7.53 8.56 

Cost of funding earning assets........................... 3.64 3.50 3.45 3.49 3.72 4.01 3.45 3.68 3.57 3.20 3.09 

Net interest margin.......................................... 4.07 4.44 4.57 4.44 3.85 3.67 4.04 3.87 4.57 4.33 5.47 

Noninterest income to earning assets.................. 3.00 1.41 1.85 2.91 3.39 4.03 2.47 2.23 2.70 1.59 3.38 

Noninterest expense to earning assets.................. 4.25 3.91 3.93 4.25 4.35 4.77 3.87 3.66 4.10 3.71 5.06 

Credit loss provision to assets.............................. 0.38 0.31 0.31 0.46 0.38 0.40 0.31 0.28 0.54 0.26 0.63 

Net operating income to assets........................... 1.32 1.08 1.36 1.51 1.28 1.25 1.28 1.28 1.57 1.20 1.68 

Return on assets............................................. 1.33 1.09 1.37 1.51 1.29 1.25 1.30 1.29 1.54 1.21 1.69 

Return on equity................................................ 15.50 9.71 14.38 16.17 16.12 15.89 14.79 15.45 17.41 13.75 15.89 

Net charge-offs to loans and leases..................... 0.58 0.35 0.33 0.65 0.64 0.77 0.40 0.35 0.74 0.42 0.93 

Credit loss provision to net charge-offs.................. 108.50 149.47 152.84 111.88 101.45 100.71 122.29 123.21 108.19 111.39 100.76 

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

Condition Ratios (%) 

58.16 66.02 60.34 55.66 57.91 60.15 57.03 58.54 55.18 60.90 54.59 

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

Loss allowance to: 

... 86.46 91.82 91.75 89.89 84.19 82.85 86.94 89.37 90.93 89.49 87.99 

Loans and leases.......................................... 1.73 1.42 1.48 1.85 1.78 1.98 1.58 1.42 1.71 1.32 2.21 

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

Noncurrent assets plus 

180.08 141.17 174.77 210.23 176.93 152.88 214.56 172.87 205.60 126.09 241.31 

other real estate owned to assets..................... 0.66 0.72 0.63 0.62 0.67 0.78 0.53 0.60 0.62 0.68 0.72 

Equity capital ratio............................................. 8.51 10.92 9.43 9.27 7.97 7.91 8.59 8.21 8.91 8.72 10.63 

Core capital (leverage) ratio................................. 7.81 10.98 9.32 8.55 7.10 7.45 7.56 7.89 8.38 8.28 9.06 

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

Structural Changes (YTD) 

89.14 70.04 76.63 91.69 93.50 82.20 94.99 97.38 92.65 70.84 91.44 

New Charters................................................ 175 169 4 1 1 24 70 25 17 18 21 

Banks absorbed by mergers.............................. 326 185 118 21 2 37 92 46 63 55 33 

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

PRIOR FIRST THREE QUARTERS

 (The way it was...) 

5 3 1 1 0 0 3 0 0 2 0 

Number of institutions................................1998 8,910 5,580 2,947 319 64 697 1,467 1,940 2,295 1,549 962 

...............................................1996 9,586 6,334 2,854 330 68 752 1,587 2,122 2,425 1,687 1,013 

...............................................1994 10,593 7,411 2,791 334 57 846 1,757 2,318 2,645 1,884 1,143 

Total assets (in billions).............................1998 $5,267.7 $257.4 $730.9 $955.3 $3,324.1 $1,916.4 $1,148.6 $835.2 $363.0 $301.5 $703.1 

................................................1996 4,458.5 285.1 694.2 1,035.0 2,444.2 1,687.5 776.3 704.8 289.4 327.9 672.6 

................................................1994 3,922.9 320.2 678.9 1,087.6 1,836.3 1,516.6 632.0 649.1 255.7 294.8 574.8 

Return on assets (%)................................1998 1.22 1.24 1.35 1.58 1.08 1.08 1.29 1.32 1.49 1.20 1.22 

................................................1996 1.19 1.23 1.29 1.31 1.10 1.08 1.21 1.19 1.44 1.23 1.28 

................................................1994 

Net charge-offs to loans & leases (%) 

1.18 1.17 1.22 1.40 1.04 1.11 1.22 1.15 1.52 1.17 1.20 

................................................1998 0.65 0.25 0.33 1.02 0.64 0.90 0.40 0.39 0.72 0.38 0.89 

................................................1996 0.56 0.21 0.37 0.99 0.44 0.62 0.43 0.42 0.65 0.31 0.79 

................................................1994 

Noncurrent assets plus 

0.49 0.19 0.33 0.61 0.53 0.76 0.24 0.26 0.43 0.12 0.58 

OREO to assets (%)..............................1998 0.65 0.76 0.65 0.74 0.61 0.74 0.55 0.59 0.65 0.59 0.65 

................................................1996 0.80 0.82 0.81 0.89 0.76 0.92 0.67 0.63 0.67 0.65 0.95 

................................................1994 1.16 0.92 1.07 1.06 1.29 1.50 0.82 0.74 0.80 0.72 1.48 

Equity capital ratio (%)..............................1998 8.68 11.17 9.80 9.83 7.91 7.64 9.36 8.81 9.11 9.36 9.73 

................................................1996 8.31 10.57 9.45 8.96 7.44 7.39 8.52 8.62 8.86 8.89 9.53 

................................................1994 7.95 9.99 8.97 8.28 7.02 7.40 7.96 8.02 8.89 8.50 8.61 

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

Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

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

FDIC Quarterly Banking Profile 

Third Quarter 1999 5 FDIC-Insured Commercial Banks 
TABLE IV-A. Third Quarter 1999, FDIC-Insured Commercial Banks 

THIRD QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

8,621 5,241 2,989 314 77 682 1,442 1,877 2,219 1,467 934 

Total assets (in billions).................................... $5,506.5 $245.4 $743.1 $875.7 $3,642.3 $1,892.3 $1,493.8 $931.4 $373.9 $306.7 $508.5 

Total deposits (in billions)................................. 3,702.5 207.9 604.3 598.3 2,291.9 1,199.4 999.6 625.0 268.7 244.2 365.7 

Net income (in millions).................................... 19,417.4 679.9 2,471.1 3,411.1 12,855.2 6,948.7 5,083.4 2,868.4 1,364.0 960.8 2,192.0 

% of unprofitable institutions.............................. 6.8 9.5 2.6 1.3 1.3 9.4 11.0 4.7 4.0 6.3 9.5 

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

Performance Ratios (annualized, %) 

61.4 55.9 69.7 72.9 74.0 67.4 64.4 61.6 57.2 59.1 65.8 

Yield on earning assets.................................... 7.80 8.00 8.20 8.12 7.61 7.67 7.59 7.66 8.36 7.69 8.75 

Cost of funding earning assets........................... 3.67 3.50 3.51 3.60 3.74 3.98 3.48 3.79 3.68 3.27 3.16 

Net interest margin.......................................... 4.13 4.50 4.69 4.52 3.88 3.69 4.11 3.88 4.68 4.41 5.59 

Noninterest income to earning assets.................. 3.11 1.41 1.80 3.02 3.55 4.33 2.49 2.16 2.81 1.62 3.53 

Noninterest expense to earning assets............... 4.22 4.00 3.98 4.28 4.27 4.66 3.79 3.66 4.25 3.70 5.22 

Credit loss provision to assets........................... 0.39 0.24 0.34 0.47 0.38 0.41 0.31 0.27 0.58 0.26 0.64 

Net operating income to assets........................ 1.43 1.11 1.35 1.59 1.42 1.47 1.37 1.25 1.58 1.27 1.74 

Return on assets............................................. 1.42 1.11 1.35 1.58 1.41 1.46 1.37 1.25 1.46 1.26 1.74 

Return on equity............................................. 16.62 10.06 14.28 17.02 17.68 18.60 15.79 15.08 16.61 14.46 16.40 

Net charge-offs to loans and leases.................. 0.58 0.23 0.33 0.71 0.62 0.78 0.41 0.33 0.80 0.44 0.83 

Credit loss provision to net charge-offs............... 109.46 177.03 165.23 103.50 103.22 100.24 118.23 123.64 108.95 104.77 114.46 

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

Structural Changes (QTR) 

56.45 67.20 60.63 54.73 55.47 56.62 55.02 59.30 55.57 59.55 54.74 

New charters............................................. 59 58 1 0 0 6 29 11 3 5 5 

Banks absorbed by mergers........................... 109 57 41 10 1 7 37 14 27 13 11 

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

PRIOR THIRD QUARTERS

 (The way it was...) 

3 1 1 1 0 0 2 0 0 1 0 

Return on assets (%)................................1998 1.15 1.27 1.33 1.62 0.97 0.90 1.47 1.38 1.49 1.26 0.82

 .................................................1996 1.19 1.26 1.27 1.31 1.11 1.12 1.17 1.21 1.46 1.23 1.24

 .................................................1994 

Net charge-offs to loans & leases (%)

1.21 1.20 1.27 1.40 1.08 1.17 1.21 1.14 1.62 1.12 1.26 

 .................................................1998 0.71 0.26 0.36 1.04 0.72 0.98 0.39 0.39 0.75 0.37 1.11

 .................................................1996 0.56 0.25 0.39 1.03 0.42 0.59 0.44 0.45 0.68 0.34 0.77

 .................................................1994 0.44 0.21 0.35 0.56 0.42 0.61 0.26 0.26 0.48 0.15 0.52 

CREDIT CARD LOSS RATES AND PERSONAL 

BANKRUPTCY FILINGS, 1984–1999 

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

7 

6 

5 

4 

3 

2 

1 

0 

`84 `85 `86 `87 `88 `89 `90 `91 `92 `93 `94 `95 `96 `97 `98 `99 

Personal 

Bankruptcy 

Filings 

Credit Card Charge-Off Rates 

Sources: Bankruptcies—Administrative Office of the United States Courts 

Charge-Off Rates—Commercial Bank Call Reports 

400 

350 

300 

250 

200 

150 

100 

50 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 6 Third Quarter 1999 
TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

September 30, 1999 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 1.03 1.14 0.89 0.90 1.12 1.16 1.02 1.10 1.00 1.09 0.68 

Construction and development........................... 1.05 0.95 0.83 1.04 1.17 1.09 0.71 1.66 1.29 1.14 0.86 

Commercial real estate.................................... 0.69 0.85 0.66 0.69 0.69 0.73 0.58 0.93 0.67 0.83 0.50 

Multifamily residential real estate........................ 1.26 0.73 0.59 0.33 1.87 0.36 3.37 0.65 0.73 0.39 0.22 

Home equity loans.......................................... 0.75 0.71 0.75 0.81 0.73 0.80 0.72 0.85 0.72 0.75 0.54 

Other 1-4 Family residential.............................. 1.23 1.51 1.16 1.06 1.29 1.33 1.21 1.22 1.25 1.38 0.92 

Commercial and industrial loans*........................... 0.87 1.32 1.29 1.13 0.69 0.51 0.68 1.32 1.47 1.50 1.13 

Loans to individuals............................................. 2.46 2.25 2.13 2.24 2.61 2.58 3.03 2.07 2.35 1.65 2.03 

Credit card loans............................................. 2.69 2.72 3.67 2.81 2.57 2.95 2.84 2.17 2.78 1.28 2.20 

Other loans to individuals................................. 2.33 2.23 1.79 1.86 2.64 2.27 3.08 2.05 1.96 1.66 1.78 

All other loans and leases (including farm)............... 0.75 NA NA 1.08 0.78 0.60 0.79 1.09 0.58 0.68 0.70 

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

Percent of Loans Noncurrent** 

... 0.30 0.73 0.38 0.32 0.29 0.15 0.08 0.86 0.61 0.34 0.45 

All real estate loans............................................. 0.82 0.80 0.67 0.75 0.92 1.10 0.72 0.80 0.64 0.94 0.68 

Construction and development........................... 0.68 0.52 0.61 0.71 0.72 0.99 0.59 0.74 0.56 0.61 0.71 

Commercial real estate.................................... 0.85 0.79 0.68 0.78 1.01 1.22 0.76 0.80 0.70 1.15 0.65 

Multifamily residential real estate........................ 0.50 0.58 0.53 0.51 0.47 0.49 0.43 0.62 0.29 0.61 0.50 

Home equity loans.......................................... 0.34 0.37 0.36 0.36 0.33 0.46 0.28 0.36 0.27 0.26 0.27 

Other 1-4 Family residential.............................. 0.83 0.73 0.66 0.78 0.90 0.93 0.79 0.88 0.55 0.81 0.79 

Commercial and industrial loans*........................... 1.15 1.46 1.29 1.11 1.06 1.43 0.73 1.01 1.20 1.64 1.34 

Loans to individuals............................................. 1.45 0.86 0.87 1.07 1.74 2.22 1.25 0.79 1.13 0.51 1.15 

Credit card loans............................................. 1.99 1.89 2.31 1.85 2.02 2.42 1.69 1.31 1.73 0.69 1.66 

Other loans to individuals................................. 1.16 0.82 0.56 0.56 1.55 2.05 1.12 0.70 0.60 0.51 0.37 

All other loans and leases (including farm)............... 0.43 NA NA 0.58 0.43 0.41 0.30 0.52 0.43 1.01 0.42 

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

Percent of Loans Charged-off (net, YTD) 

... 0.27 0.75 0.36 0.36 0.26 0.17 0.24 0.42 0.14 0.43 0.49 

All real estate loans............................................. 0.07 0.03 0.04 0.07 0.09 0.05 0.10 0.05 0.09 0.07 0.04 

Construction and development........................... 0.03 0.07 0.02 0.05 0.02 -0.03 0.05 0.03 0.03 0.03 0.03 

Commercial real estate.................................... 0.02 0.03 0.03 0.02 0.02 -0.04 0.06 0.01 0.04 0.11 -0.04 

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

Home equity loans.......................................... 0.15 0.06 0.04 0.17 0.17 0.15 0.16 0.17 0.15 0.49 0.06 

Other 1-4 Family residential.............................. 0.10 0.04 0.05 0.09 0.12 0.08 0.13 0.06 0.14 0.06 0.15 

Commercial and industrial loans*........................... 0.51 0.36 0.42 0.51 0.50 0.56 0.45 0.35 0.42 0.69 0.76 

Loans to individuals............................................. 2.30 1.39 1.45 2.41 2.49 2.91 1.58 1.36 2.89 0.94 3.26 

Credit card loans............................................. 4.50 5.46 5.27 4.68 4.36 4.62 3.77 4.15 5.18 2.60 4.55 

Other loans to individuals................................. 0.99 0.55 0.62 0.86 1.17 1.30 0.91 0.79 0.89 0.87 0.91 

All other loans and leases (including farm)............... 0.21 NA NA 0.26 0.22 0.11 0.18 0.29 0.36 0.33 0.39 

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

Loans Outstanding (in billions) 

... -0.01 0.72 -0.16 -0.02 -0.01 -0.09 0.03 0.02 0.19 0.03 -0.06 

All real estate loans............................................. $1,428.7 $83.4 $294.5 $289.0 $761.8 $326.4 $471.3 $278.4 $113.0 $81.5 $158.1 

Construction and development........................... 123.9 6.5 29.8 30.2 57.5 13.2 44.1 24.3 11.0 10.6 20.7 

Commercial real estate.................................... 403.8 23.4 106.1 94.2 180.2 69.8 122.8 85.0 31.1 30.5 64.6 

Multifamily residential real estate........................ 51.2 1.8 10.0 10.8 28.7 13.1 14.3 9.9 3.4 2.5 8.0 

Home equity loans.......................................... 97.0 1.8 12.5 17.3 65.4 22.0 33.7 24.0 5.3 1.1 11.0 

Other 1-4 Family residential.............................. 689.8 39.0 123.9 132.9 394.0 179.6 247.1 127.4 52.2 33.4 50.2 

Commercial and industrial loans........................... 947.2 24.9 84.1 121.5 716.7 323.2 257.4 177.0 58.6 45.6 85.4 

Loans to individuals............................................. 530.2 20.8 65.5 112.1 331.8 186.5 117.9 78.9 47.0 32.2 67.7 

Credit card loans............................................. 189.2 0.8 11.7 44.5 132.1 86.9 26.4 11.4 22.2 1.3 41.0 

Other loans to individuals................................. 341.1 20.0 53.8 67.6 199.7 99.5 91.5 67.5 24.9 30.9 26.6 

All other loans and leases (including farm)............... 455.9 19.1 26.8 36.9 373.2 171.2 119.0 83.4 34.7 16.3 31.3 

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

Memo: Other Real Estate Owned (in millions) 

... 35.1 0.2 1.0 2.9 31.0 10.7 11.3 4.2 2.7 1.6 4.6 

All other real estate owned.................................... $2,919.2 $273.2 $692.1 $453.7 $1,500.1 $856.9 $840.8 $346.5 $200.0 $257.4 $417.7 

Construction and development........................... 238.4 26.5 98.8 42.1 71.0 46.4 94.3 21.1 20.3 18.0 38.2 

Commercial real estate.................................... 1,323.6 118.7 324.6 210.1 670.2 350.7 371.8 133.1 70.5 143.3 254.4 

Multifamily residential real estate........................ 63.9 8.7 18.2 19.3 17.7 20.9 10.4 6.0 5.9 4.2 16.5 

1-4 Family residential....................................... 985.1 87.5 220.1 175.5 501.9 207.0 356.3 179.5 73.0 72.6 96.7 

Farmland...................................................... 76.8 31.7 30.4 5.6 9.1 2.8 8.0 6.8 30.3 19.3 9.7 

Other real estate owned in foreign offices............ 231.4 0.0 0.0 1.2 230.2 229.1 0.0 0.0 0.0 0.0 2.3 

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

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

FDIC Quarterly Banking Profile 

Third Quarter 1999 7 FDIC-Insured Commercial Banks 
SAVINGS INSTITUTIONS PERFORMANCE—THIRD QUARTER, 1999 

• Earnings Of $2.8 Billion Nearly Match Previous Quarter’s 

• Net Operating Income Continues To Set New Records 

• Loan Growth Funded Primarily With FHLB Borrowings 

• First Thrift Failure In Almost Three Years 

FDIC-insured savings institutions reported earnings of $2.8 billion for the third quarter, just $13 million lower than second-quarter earnings, but $105 

million lower than the record third quarter of 1998. 

The average annualized return on assets (ROA) of 

1.00 percent for the third quarter was lower than 

the second quarter ROA of 1.03 percent as industry assets grew by $23.6 billion. Savings institutions reached a record ROA of 1.14 percent a year 

ago. The lower earnings this quarter were attributable to reduced gains from securities sales. Gains 

on the sales of securities contributed $276 million 

to earnings in the third quarter, down by $169 million (38 percent) from the second quarter and $373 

million (57 percent) lower than a year ago. Net 

interest income improved by $90 million over the 

second quarter for the fifth consecutive quarterly 

increase and noninterest income increased by $65 

million. These offset much of the decline in gains 

on the sales of securities. Net operating income, 

which excludes securities gains and extraordinary 

items, achieved its second consecutive quarterly 

record at $2.7 billion. Net operating income was 

0.94 percent of assets, up from 0.92 percent last 

quarter, but lower than the 0.97 percent in the third 

quarter of 1998. Profitability was higher a year ago 

QUARTERLY NET INCOME, 1995–1999 $ Billion 

1.71.9 

2.2 

1.8 

2.52.6 

0.0 

2.2 

2.4 2.4 

2.0 

2.3 

2.6 

2.8 

3.0 

2.0 

2.7 

2.9 2.8 

Securities and Other Gains, Net 

Net Operating Income 

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

1995 1996 1997 1998 1999 

when net operating income of $2.5 billion was 

derived from a smaller asset base. Over 57 percent of savings institutions reported earnings gains 

from a year ago and 29 percent achieved an ROA 

of 1.00 percent or more for the quarter. 

The industry’s net interest margin declined slightly, 

to 3.08 percent from 3.10 percent in the second 

quarter. The cost of funding earning assets rose 

12 basis points, while the yield on earning assets 

increased by 10 basis points. Only thrifts in the 

Northeast Region reported improvements in net 

interest margins, which were up by 5 basis points 

to 3.36 percent. Thrifts headquartered in the West 

Region showed the largest drop in margins, declining 9 basis points to 2.71 percent. The Northeast 

Region is home to a large number of smaller thrifts, 

which tend to have higher net interest margins 

than larger institutions. 

QUARTERLY NET INTEREST MARGINS, 

1995–1999 

Net Interest Margin (%) 

4.5 

4.0 

3.5 

3.0 

2.5 

3.07 

3.42 

Assets > $100 Million 

Assets < $100 Million 

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

1995 1996 1997 1998 1999 

Increases in net interest margins at small savings 

institutions (with assets below $100 million) helped 

improve their profitability. Net interest margins for 

these thrifts rose 5 basis points to 3.42 percent for 

the third quarter. Their yield on earning assets 

rose 3 basis points, while the cost of funding earnFDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 Third Quarter 1999 

0 
ing assets declined 2 basis points. Net interest COVERAGE RATIO* AND RESERVE LEVELS, 

margins were almost the same as the 3.43 percent 1995–1999 $ Billion Coverage Ratio (%) 

reported a year ago for these institutions, but rising 

noninterest expenses have taken a growing share 

of revenues over the past year. Noninterest 

expenses represented 3.77 percent of earning 

assets this quarter at small thrifts, up by 14 basis 

points from last quarter and by 37 basis points 

from a year ago. The efficiency ratio for these 

thrifts improved slightly during the quarter, to 76.56 

percent from 77.37 percent, but the efficiency ratio 

was much better a year ago when it stood at 72.42 

percent. These smaller institutions reported an 

ROA of 0.69 percent, up from 0.66 percent last 

quarter, but still below the 0.79 percent ROA from 

a year ago. Over 15 percent of these institutions 

lost money this quarter and less than half of them 

had improved earnings from a year ago. 

QUARTERLY EFFICIENCY RATIOS, 

1996–1999 Efficiency Ratio (%) 

30 

Noncurrent Loans ($) 

Loan-Loss Reserves ($) 

Coverage Ratio (%) 

140 

120 

24 

100 

18 80 

60 12 

40 

6 

20 

0 

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

0 

1995 1996 1997 1998 1999 

* Loan-loss reserves to noncurrent loans. 

quarter, the tenth consecutive improvement in this 

rate. 

Loan growth was fueled by a strong economy and 

was the source of the increase in industry assets. 

Total loans and leases increased by $27.2 billion 

120 

110 

100 

90 

80 

70 

60 

50 

54.61 

Assets > $100 Million 

Assets < $100 Million 76.56 

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

1996 1997 1998 1999 

The industry’s asset quality remained strong, 

during the quarter, while securities declined by 

$4.0 billion. One institution accounted for 62 percent of the decline in securities.2 Federal Home 

Loan Bank (FHLB) advances funded most of the 

increase in assets. FHLB advances rose $14.9 billion, while deposits increased by $3.5 billion and 

other borrowings contributed another $4 billion. 

The industry’s equity capital increased by $883 

million during the third quarter, despite a $1.1 billion after-tax decline in the value of available-forsale (AFS) securities. Equity capital was 8.45 

2 Washington Mutual Bank, FA, Stockton California, reported a 

$2.5-billion decline in investment securities during the third 

quarter. 

although the coverage ratio—loan-loss reserves to REGULATORY CAPITAL RATIOS, noncurrent loans—declined slightly to $1.23 in 

reserve for each dollar of noncurrent loans from Ratio (%) 

18 

1993–1999 

last quarter’s record level of $1.24. This was the 

first decline after 10 consecutive quarterly increas- 16 

es. Reserves for loan losses rose by $84 million, 14 

while noncurrent loans rose by almost $90 million. 

One institution that specializes in working with 

12 

troubled loans accounted for 81 percent of the 10 

increase in noncurrent loans during the quarter.1 

8 

Because of loan growth, noncurrent loans declined 

to 0.75 percent of total loans from 0.76 percent last 6 

1 Ocwen Federal Bank, FSB of Fort Lee, New Jersey reported a 

4 

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

$72 million increase in noncurrent loans. 1993 1994 1995 1996 1997 1998 1999 

Equity to Assets 

Tier 1 Risk-Based Capital 

Total Risk-Based Capital 

Core Capital (Leverage) 

FDIC Quarterly Banking Profile 

Third Quarter 1999 9 FDIC-Insured Savings Institutions 
percent of assets, down from 8.55 percent last 

quarter because of the growth in assets and the 

decline in value of AFS securities. The core capital (leverage) ratio increased slightly from 7.93 

percent to 7.94 percent of average assets. This 

capital ratio showed improvement partly because it 

is based on average assets, which did not capture 

all of the increase in industry assets, and partly 

because tier 1 regulatory capital excludes the 

decline in market value of AFS securities. 

The number of thrifts declined by 3 to 1,650 during 

the third quarter. The absorption of 17 thrift charters by merger was partially offset by 12 new charters. Commercial banks absorbed 10 thrifts with 

$2.8 billion in assets and thrifts absorbed 7 more 

with $551 million in assets. One thrift institution 

failed in the third quarter. This failure occurred just 

one month shy of three years after the last thrift 

failure. Other charter changes included 7 mutualto-stock conversions, involving $9.0 billion in 

assets. The number and assets of “problem” thrifts 

declined to 11 thrifts, with $3.9 billion in assets, 

from 14 thrifts, with $4.2 billion in assets, at the end 

of June. 

NONCURRENT LOAN RATES,* 

SEPTEMBER 30, 1999 

West 

Midwest Northeast 

WA 

0.5 

ID 

0.1 

OR 

0.4 

NV 

1.2 

AK 

0.1 

CA 

0.6 

MA 0.4 

RI 0.8 

HI 

1.9 

Greater than 1.5% 

Between 0.75% and 1.5% 

Less than 0.75% 

Southeast 

GA 

0.7 

FL 

0.4 

MS AL 

0.7 Southwest 

0.7 

NC 0.5 

WV 

NA 

AZ 1.4 VA 

TN 0.5 

1.3 

PR 

SC 

0.6 

0.7 

UT 0.7 IL 0.6 IN 

1.4 CO 0.8 0.9 DE 0.7 0.4 

WY 0.5 

KS 

0.7 

MT ND VT 1.0 

0.5 

SD 0.4 

0.4 

NE 0.5 0.6 CT 0.6 

MN 

IA 

MO 

0.3 0.6 

MI 

KY 1.1 

PA 1.1 

OH 

WI 

0.5 

Central 

NJ 2.9 

DC 1.9 

ME 

0.8 

NH 0.5 NY 

0.8 

MD 1.9 

OK 

0.9 AR 

0.9 2.8 

NM 

LA 

1.1 0.4 

TX 

* Noncurrent loan rates represent the percentage of loans that are past due 90 days or 

more or in nonaccrual status. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Third Quarter 1999 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

1999** 1998** 1998 1997 1996 1995 1994 

Return on assets (%)............................................. 1.01 1.09 1.01 0.93 0.70 0.77 0.66 

Return on equity (%)............................................. 11.74 12.29 11.35 10.84 8.40 9.40 8.28 

Core capital (leverage) ratio (%).............................. 7.94 8.08 7.85 7.95 7.76 7.80 7.65 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.61 0.75 0.72 0.95 1.09 1.20 1.38 

Net charge-offs to loans (%).................................... 0.16 0.21 0.22 0.25 0.32 0.34 0.51 

Asset growth rate (%)............................................. 8.79 3.39 6.05 -0.21 0.25 1.70 0.77 

Net interest margin................................................ 3.09 3.13 3.10 3.23 3.22 3.09 3.34 

Net operating income growth (%).............................. 8.64 12.63 7.69 20.08 -13.99 13.81 22.24 

Number of institutions reporting................................. 1,650 1,713 1,689 1,780 1,925 2,030 2,152 

Percentage of unprofitable institutions (%).................. 7.52 4.85 5.27 4.10 12.05 5.86 6.97 

Number of problem institutions................................. 11 18 15 21 35 49 71 

Assets of problem institutions (in billions).................. $4 $3 $6 $2 $7 $14 $39 

Number of failed/assisted institutions........................ 1 0 0 0 1 2 4 

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

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

(dollar figures in millions) 

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

Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter %Change 

1999 1999 1998 98:3-99:3 

... 1,650 1,653 1,713 -3.7 

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

CONDITION DATA

245,848 241,356 244,910 0.4 

 Total assets..................................................................... $1,149,437 $1,125,789 $1,056,562 8.8

 Loans secured by real estate............................................. 678,561 656,479 634,256 7.0 

1-4 Family Residential................................................... 544,043 528,045 510,644 6.5 

Multifamily residential property.......................................... 54,377 52,248 54,361 0.0 

Commercial real estate................................................... 52,259 50,114 46,657 12.0 

Construction, development, and land................................. 27,882 26,072 22,594 23.4

 Commercial & industrial loans.......................................... 25,192 23,707 19,380 30.0

 Loans to individuals......................................................... 60,771 57,597 50,714 19.8

 Other loans & leases...................................................... 4,430 3,958 3,309 33.9

 Less: Unearned income & contra accounts***........................ 204 188 164 24.6

 Total loans & leases......................................................... 768,751 741,554 707,495 8.7

 Less: Reserve for losses................................................... 7,071 6,987 6,964 1.5

 Net loans & leases............................................................ 761,680 734,567 700,530 8.7

 Securities........................................................................ 286,166 290,122 255,081 12.2

 Other real estate owned................................................... 1,229 1,353 1,626 -24.4

 Goodwill and other intangibles............................................. 15,702 15,430 14,015 12.0

 All other assets............................................................... 84,661 84,317 85,311 -0.8 

Total liabilities and capital................................................... 1,149,437 1,125,789 1,056,562 8.8

 Deposits........................................................................ 702,769 699,252 696,461 0.9

 Other borrowed funds...................................................... 330,318 311,517 244,186 35.3

 Subordinated debt............................................................ 3,316 2,946 2,823 17.4

 All other liabilities............................................................ 15,923 15,845 18,069 -11.9

 Equity capital.................................................................. 97,111 96,229 95,023 2.2 

Loans and leases 30-89 days past due.................................... 6,550 6,424 7,314 -10.5 

Noncurrent loans and leases................................................ 5,728 5,638 6,310 -9.2 

Restructured loans and leases............................................. 1,902 2,080 2,676 -28.9 

Direct and indirect investments in real estate........................... 573 606 564 1.5 

Mortgage-backed securities................................................ 215,671 220,341 192,474 12.1 

Earning assets.................................................................. 1,069,218 1,047,248 984,901 8.6 

FHLB Advances (Source: TFR and FHFB).............................. 214,326 199,469 154,126 39.1 

Unused loan commitments................................................... 178,020 183,951 181,733 -2.0 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

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

Qtrs 1999 Qtrs 1998 %Change 1999 1998 98:3-99:3 

... $56,381 $53,573 5.2 $19,416 $18,246 6.4 

32,470 31,594 2.8 11,272 10,840 4.0

23,911 21,979 8.8 8,143 7,406 10.0 

1,150 1,345 -14.5 367 504 -27.2 

... 7,265 7,032 3.3 2,510 3,078 -18.5 

18,182 17,120 6.2 6,106 5,898 3.5 

... 1,318 1,932 -31.8 276 649 -57.5 

4,786 4,212 13.6 1,606 1,762 -8.8 

-4 -23 N/M -1 -15 N/M

... 8,372 8,243 1.6 2,850 2,955 -3.5 

... 889 1,079 -17.6 282 404 -30.2 

3,950 4,870 -18.9 1,716 2,322 -26.1

7,485 6,890 8.6 2,667 2,510 6.2 

* Data between 1994 and 1995 do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. N/M - Not Meaningful 

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

FDIC Quarterly Banking Profile 

Third Quarter 1999 11 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE III-B. First Three Quarters 1999, FDIC-Insured Savings Institutions 

FIRST THREE QUARTERS Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

... 1,650 671 832 111 36 639 228 429 127 114 113 

Total assets (in billions).................................... $1,149.4 $34.2 $243.6 $224.5 $647.2 $381.1 $73.2 $181.9 $40.4 $73.7 $399.2 

Total deposits (in billions).................................... 702.8 27.4 184.4 144.0 347.0 260.6 51.2 123.5 26.1 43.5 197.9 

Net income (in millions).................................... 8,371.9 173.9 1,576.6 1,693.1 4,928.2 2,800.2 433.6 1,387.3 237.8 618.6 2,894.4 

% of unprofitable institutions.............................. 7.5 13.9 3.4 2.7 0.0 4.7 10.1 8.9 10.2 9.6 8.0 

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

Performance ratios (annualized, %) 

51.2 41.0 55.9 71.2 72.2 57.0 48.2 46.6 40.9 50.0 54.9 

Yield on earning assets.................................... 7.28 7.28 7.36 7.45 7.20 7.21 7.48 7.48 7.36 7.58 7.16 

Cost of funding earning assets........................... 4.19 3.93 3.95 4.16 4.31 3.89 4.16 4.33 4.38 4.35 4.38 

Net interest margin.......................................... 3.09 3.35 3.40 3.29 2.89 3.32 3.33 3.15 2.98 3.23 2.79 

Noninterest income to earning assets.................. 0.94 1.36 0.68 0.98 1.00 0.83 1.16 1.18 0.74 1.25 0.86 

Noninterest expense to earning assets.................. 2.35 3.62 2.72 2.55 2.07 2.49 3.04 2.62 2.32 2.76 1.90 

Credit loss provision to assets*........................... 0.14 0.08 0.10 0.25 0.12 0.10 0.23 0.23 0.12 0.27 0.10 

Net operating income to assets........................... 0.90 0.60 0.78 0.88 0.97 0.92 0.69 0.86 0.76 1.03 0.93 

Return on assets............................................. 1.01 0.69 0.90 1.05 1.05 1.02 0.85 1.05 0.82 1.16 1.00 

Return on equity................................................ 11.74 5.51 8.36 11.78 14.11 10.55 8.40 11.50 8.15 14.10 14.31 

Net charge-offs to loans and leases..................... 0.16 0.07 0.09 0.28 0.15 0.10 0.23 0.24 0.15 0.21 0.16 

Credit loss provision to net charge-offs.................. 129.30 160.73 160.51 141.12 114.48 171.90 144.85 133.04 109.56 178.15 89.74 

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

Condition Ratios (%) 

56.41 76.39 65.88 58.12 50.63 57.61 66.96 58.33 60.59 60.56 50.47 

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

Loss allowance to: 

... 93.02 94.06 94.08 93.23 92.50 93.20 93.13 92.15 93.51 92.14 93.34 

Loans and leases.......................................... 0.92 0.74 0.84 1.15 0.88 1.04 0.84 0.79 0.65 0.86 0.94 

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

Noncurrent assets plus 

123.44 82.13 122.15 104.44 137.94 117.23 144.84 103.23 119.43 78.40 156.05 

other real estate owned to assets..................... 0.61 0.70 0.56 0.91 0.51 0.64 0.54 0.67 0.52 0.91 0.51 

Noncurrent RE loans to RE loans........................ 0.73 0.87 0.66 1.11 0.63 0.91 0.55 0.73 0.50 1.18 0.58 

Equity capital ratio............................................. 8.45 12.36 10.49 8.68 7.39 9.49 9.85 8.91 10.01 8.37 6.84 

Core capital (leverage) ratio................................. 7.94 12.09 10.20 8.24 6.77 8.75 9.56 8.14 9.26 8.29 6.60 

Gross real estate assets to gross assets............... 77.46 68.76 71.86 73.37 81.45 72.08 71.05 73.63 77.01 66.54 87.59 

Gross 1-4 family mortgages to gross assets............ 47.03 49.21 46.69 38.91 49.87 40.27 45.91 51.60 51.41 35.54 53.29 

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

Structural Changes (YTD) 

108.38 82.53 88.75 100.28 124.21 87.85 98.04 107.38 109.37 118.26 136.41 

New Charters................................................ 29 27 2 0 0 5 8 11 1 1 3 

Thrifts absorbed by mergers.............................. 64 27 32 5 0 20 14 20 2 7 1 

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

PRIOR FIRST THREE QUARTERS**

 (The way it was...) 

1 1 0 0 0 0 1 0 0 0 0 

Number of institutions...............................1998 1,713 725 844 108 36 665 236 449 127 119 117 

...............................................1996 1,962 862 939 124 37 736 294 504 149 130 149 

...............................................1994 2,181 1,011 1,003 137 30 799 345 552 160 142 183 

Total assets (in billions).............................1998 $1,056.6 $37.8 $248.0 $214.6 $556.2 $354.4 $65.2 $171.9 $34.8 $66.1 $364.1 

................................................1996 1,035.3 44.9 276.4 253.8 460.1 348.9 68.0 174.4 52.1 77.9 314.0 

................................................1994 1,006.2 51.3 290.8 297.0 367.1 335.0 82.4 153.2 52.4 56.9 326.3 

Return on assets (%)................................1998 1.09 0.84 0.94 1.08 1.19 1.02 1.04 1.03 0.92 1.21 1.20 

................................................1996 0.66 0.31 0.57 0.73 0.70 0.79 0.45 0.57 0.53 1.76 0.34 

................................................1994 

Net charge-offs to loans & leases (%) 

0.67 0.82 0.84 0.80 0.40 0.92 0.89 0.77 0.57 0.96 0.26 

................................................1998 0.21 0.07 0.15 0.26 0.23 0.16 0.66 0.19 0.09 0.42 0.17 

................................................1996 0.31 0.10 0.17 0.31 0.42 0.30 0.35 0.14 0.14 0.32 0.44 

................................................1994 

Noncurrent assets plus 

0.53 0.11 0.21 0.50 0.85 0.49 0.18 0.11 0.09 0.31 0.89 

OREO to assets (%)***.....................1998 0.75 0.78 0.73 1.01 0.66 0.83 0.66 0.65 0.54 0.95 0.72 

................................................1996 1.14 0.99 0.95 1.34 1.16 1.30 1.29 0.64 0.66 1.08 1.31 

.................................................1994 1.57 1.17 1.35 1.67 1.73 2.06 1.10 0.56 0.62 1.44 1.85 

Equity capital ratio (%)..............................1998 8.99 12.34 10.74 9.25 7.89 10.07 10.41 9.48 9.98 8.63 7.43 

................................................1996 8.21 10.98 9.75 8.13 7.07 8.96 9.26 8.70 8.33 7.95 6.93 

................................................1994 8.04 9.82 8.97 8.12 7.00 8.46 8.47 8.71 7.86 7.43 7.33 

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

** 1994 data do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 12 Third Quarter 1999 
 

 

 

 

 

TABLE IV-B. Third Quarter 1999, FDIC-Insured Savings Institutions 

THIRD QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

... 1,650 671 832 111 36 639 228 429 127 114 113 

Total assets (in billions).................................... $1,149.4 $34.2 $243.6 $224.5 $647.2 $381.1 $73.2 $181.9 $40.4 $73.7 $399.2 

Total deposits (in billions).................................... 702.8 27.4 184.4 144.0 347.0 260.6 51.2 123.5 26.1 43.5 197.9 

Net income (in millions).................................... 2,849.9 58.7 513.1 574.6 1,703.5 1,014.4 127.7 443.3 81.1 217.7 965.8 

% of unprofitable institutions.............................. 8.4 15.1 4.1 2.7 0.0 5.3 12.7 9.8 10.2 9.6 8.0 

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

Performance Ratios (annualized, %) 

57.0 47.4 62.0 72.1 72.2 61.8 53.1 51.3 54.3 60.5 58.4 

Yield on earning assets.................................... 7.35 7.37 7.42 7.49 7.27 7.30 7.61 7.55 7.41 7.67 7.19 

Cost of funding earning assets........................... 4.27 3.95 3.98 4.21 4.41 3.94 4.24 4.38 4.43 4.43 4.48 

Net interest margin.......................................... 3.08 3.42 3.44 3.28 2.86 3.36 3.37 3.16 2.98 3.24 2.71 

Noninterest income to earning assets.................. 0.95 1.47 0.66 0.97 1.02 0.86 1.08 1.23 0.74 1.27 0.84 

Noninterest expense to earning assets.................. 2.31 3.77 2.74 2.49 2.01 2.42 3.09 2.61 2.30 2.80 1.85 

Credit loss provision to assets.............................. 0.13 0.08 0.09 0.23 0.11 0.09 0.23 0.21 0.11 0.27 0.08 

Net operating income to assets........................... 0.94 0.62 0.78 0.93 1.02 1.02 0.62 0.91 0.79 1.07 0.92 

Return on assets............................................. 1.00 0.69 0.86 1.04 1.06 1.08 0.72 0.99 0.82 1.19 0.98 

Return on equity................................................ 11.80 5.56 8.08 11.80 14.35 11.29 7.13 10.94 8.07 14.40 14.19 

Net charge-offs to loans and leases..................... 0.15 0.05 0.09 0.25 0.14 0.09 0.25 0.21 0.14 0.23 0.14 

Credit loss provision to net charge-offs*............... 130.28 230.04 150.61 137.12 119.70 184.56 137.13 136.62 112.22 163.50 86.64 

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

Structural Changes (QTR) 

55.41 76.56 65.90 57.04 49.13 54.93 68.76 57.42 59.79 61.00 50.12 

New charters................................................ 12 11 1 0 0 2 4 3 0 1 2 

Thrifts absorbed by mergers.............................. 17 8 9 0 0 7 4 5 0 1 0 

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

PRIOR THIRD QUARTERS**

 (The way it was...)

1 1 0 0 0 0 1 0 0 0 0 

 Return on assets (%)................................1998 1.14 0.79 0.90 1.09 1.30 1.04 1.34 1.07 0.84 1.15 1.27 

.................................................1996 -0.01 -0.51 0.00 0.29 -0.14 0.49 -0.40 -0.26 -0.21 0.32 -0.41 

.................................................1994 

Net charge-offs to loans & leases (%) 

0.76 0.79 0.84 0.91 0.56 1.01 0.87 0.88 0.87 0.71 0.40 

.................................................1998 0.23 0.04 0.16 0.24 0.27 0.14 1.15 0.19 0.08 0.42 0.16 

.................................................1996 0.30 0.09 0.16 0.33 0.40 0.28 0.36 0.16 0.13 0.31 0.41 

.................................................1994 0.51 0.10 0.22 0.46 0.82 0.56 0.11 0.12 0.10 0.40 0.79 

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

** 1994 data do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 

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

Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

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

FDIC Quarterly Banking Profile 

Third Quarter 1999 13 FDIC-Insured Savings Institutions 
TABLE V-B. Loan Performance, FDIC-Insured Savings Institutions 

September 30, 1999 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 0.78 1.55 0.96 0.75 0.69 0.72 0.98 0.90 1.05 0.99 0.69 

Construction, development, and land.................. 1.00 1.46 1.54 0.73 0.71 0.92 1.20 1.75 1.33 0.54 0.71 

Commercial real estate.................................... 0.57 1.24 0.65 0.62 0.38 0.58 0.97 0.67 0.48 0.67 0.32 

Multifamily residential real estate........................ 0.22 0.64 0.39 0.23 0.17 0.20 0.68 0.41 0.26 0.25 0.18 

Home equity loans.......................................... 0.47 0.59 0.53 0.45 0.44 0.54 0.34 0.58 0.45 0.17 0.27 

Other 1-4 Family residential.............................. 0.86 1.65 1.02 0.87 0.76 0.80 1.00 0.92 1.14 1.23 0.79 

Commercial and industrial loans........................... 1.02 2.07 1.49 1.16 0.56 0.83 1.80 1.68 1.49 0.60 0.78 

Loans to individuals............................................. 1.61 2.20 1.78 1.65 1.52 1.48 2.19 1.57 1.56 0.88 2.32 

Credit card loans............................................. 1.63 1.07 4.04 3.39 1.19 1.41 2.44 1.60 3.68 0.63 4.11 

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

Percent of Loans Noncurrent* 

1.60 2.23 1.61 1.39 1.67 1.49 2.15 1.56 1.48 1.07 1.94 

All real estate loans............................................. 0.73 0.87 0.66 1.11 0.63 0.91 0.55 0.73 0.50 1.18 0.58 

Construction, development, and land.................. 0.71 1.32 0.81 0.80 0.51 0.67 0.48 1.02 0.82 0.25 1.22 

Commercial real estate.................................... 0.95 0.86 0.78 1.42 0.76 1.16 0.77 1.02 0.77 0.63 0.69 

Multifamily residential real estate........................ 0.51 1.24 0.56 0.92 0.30 0.68 0.90 0.52 0.30 3.11 0.24 

Home equity loans.......................................... 0.27 0.18 0.27 0.21 0.30 0.32 0.09 0.35 0.10 0.03 0.20 

Other 1-4 Family residential.............................. 0.75 0.84 0.65 1.15 0.67 0.93 0.56 0.73 0.47 1.40 0.61 

Commercial and industrial loans........................... 1.13 1.85 1.14 1.20 0.98 1.02 1.03 1.85 1.34 0.85 1.09 

Loans to individuals............................................. 0.74 0.89 0.85 0.97 0.60 0.56 0.64 0.86 0.64 0.76 0.89 

Credit card loans............................................. 1.30 0.75 3.71 2.76 0.91 1.06 1.22 0.63 2.17 1.29 3.56 

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

Percent of Loans Charged-off (net, YTD) 

0.57 0.90 0.64 0.71 0.47 0.49 0.54 0.95 0.59 0.35 0.32 

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

Construction, development, and land.................. 0.03 0.07 0.06 0.03 0.00 0.03 0.06 0.11 0.05 -0.01 -0.02 

Commercial real estate.................................... 0.00 0.01 -0.02 0.00 0.02 -0.04 0.06 0.03 0.25 0.00 0.01 

Multifamily residential real estate........................ -0.06 0.09 0.05 -0.03 -0.11 -0.02 0.03 0.07 -0.01 0.01 -0.12 

Home equity loans.......................................... 0.14 0.04 0.10 0.14 0.16 0.16 0.12 0.04 0.37 0.16 0.19 

Other 1-4 Family residential.............................. 0.06 0.03 0.04 0.06 0.07 0.04 0.04 0.06 0.02 0.08 0.08 

Commercial and industrial loans........................... 0.35 0.43 0.33 0.53 0.24 0.15 1.21 0.54 0.54 0.16 0.38 

Loans to individuals............................................. 1.42 0.54 0.78 2.28 1.29 0.84 1.43 1.51 1.06 0.86 2.91 

Credit card loans............................................. 3.72 1.20 3.19 9.61 2.72 2.66 3.98 3.41 14.12 1.27 11.53 

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

Loans Outstanding (in billions) 

0.72 0.52 0.60 1.06 0.62 0.46 0.96 0.86 0.46 0.55 1.06 

All real estate loans............................................. $678.6 $20.6 $149.0 $123.2 $385.7 $200.3 $42.5 $112.3 $25.3 $39.2 $258.9 

Construction, development, and land.................. 27.9 1.1 8.5 7.1 11.1 5.4 4.2 4.9 1.4 6.9 5.2 

Commercial real estate.................................... 52.0 1.9 17.4 14.4 18.3 24.3 3.7 6.3 2.3 4.2 11.3 

Multifamily residential real estate........................ 54.4 0.6 8.5 13.7 31.6 16.1 0.8 6.7 0.8 1.8 28.1 

Home equity loans.......................................... 18.3 0.4 4.8 4.2 8.9 7.2 1.8 4.8 0.6 0.4 3.6 

Other 1-4 Family residential.............................. 525.7 16.5 109.6 83.8 315.8 147.3 32.0 89.6 20.3 25.9 210.6 

Commercial and industrial loans........................... 25.2 0.7 5.8 7.4 11.3 11.7 2.3 3.3 1.0 2.9 3.9 

Loans to individuals............................................. 60.8 1.4 9.8 14.0 35.4 17.4 5.6 16.8 2.3 9.5 9.1 

Credit card loans............................................. 13.5 0.0 0.7 1.8 10.9 2.3 0.8 4.5 0.1 4.2 1.6 

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

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

47.3 1.4 9.2 12.2 24.5 15.1 4.8 12.3 2.3 5.3 7.5 

All other real estate owned.................................... $1,228.5 $34.8 $227.4 $434.6 $531.8 $397.0 $103.3 $191.8 $52.3 $101.3 $382.8 

Construction, development, and land.................. 161.8 4.4 28.3 19.8 109.3 22.4 77.5 17.6 16.4 5.1 22.8 

Commercial real estate.................................... 301.0 5.8 50.0 185.9 59.3 153.6 9.2 44.5 11.4 29.9 52.4 

Multifamily residential real estate........................ 93.7 0.8 17.9 41.5 33.5 26.4 1.5 8.6 0.1 22.5 34.6 

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

Troubled Real Estate Asset Rates*** 

(% of total RE assets) 

720.6 24.4 135.9 202.1 358.3 209.9 35.6 124.4 28.3 45.9 276.5 

All real estate loans............................................. 0.91 1.04 0.81 1.45 0.77 1.10 0.79 0.90 0.71 1.44 0.73 

Construction, development, and land.................. 1.28 1.71 1.14 1.07 1.48 1.08 2.29 1.37 1.98 0.32 1.66 

Commercial real estate.................................... 1.53 1.21 1.06 2.70 1.08 1.78 1.01 1.71 1.26 1.40 1.15 

Multifamily residential real estate........................ 0.68 1.38 0.77 1.22 0.41 0.84 1.09 0.65 0.31 4.31 0.36 

1-4 family residential....................................... 0.86 0.96 0.75 1.33 0.77 1.03 0.64 0.84 0.60 1.54 0.73 

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

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 14 Third Quarter 1999 
ALL FDIC-INSURED INSTITUTIONS 

• Insurance Losses Cause The BIF To Fall By $332 Million 

• One SAIF Failure In The Third Quarter Is The First Since 1996 

• FICO Assessments Move To Uniform Rates For 2000 

Insured deposits held by the 10,291 FDIC members increased slightly during the third quarter of 

1999, rising by $8 billion, or 0.3 percent. The 

growth occurred primarily in the insured portions 

of large deposit accounts (over $100,000). The 

growth in insured deposits lagged behind thirdquarter growth rates for total deposits (0.6 percent) and total liabilities (1 percent), continuing a 

trend toward greater reliance on uninsured 

deposits and nondeposit funding. 

The balance of the Bank Insurance Fund (BIF) 

stood at $29.5 billion (unaudited) on September 

30, having fallen from $29.8 billion on June 30. 

The fund’s reserve ratio also declined during the 

third quarter, to 1.38 percent from 1.40 percent. 

The decrease resulted from higher insurance 

losses, primarily those attributed to the 

September 1 failure of First National Bank of 

Keystone (WV), currently estimated to cost the 

BIF $750 million. Two other BIF members failed 

during the third quarter. For the first nine months 

of 1999, five BIF members failed, with total assets 

of $1.3 billion and estimated insurance losses of 

$760 million. These losses are higher than those 

experienced in any full calendar year since 1992, 

which marked the end of the banking crisis of the 

late 1980s and early 1990s. 

The Savings Association Insurance Fund (SAIF) 

totaled $10.2 billion (unaudited) on September 

30, having grown by $139 million during the third 

quarter. This total includes the $978-million SAIF 

Special Reserve, which was established January 

1, 1999, under provisions of the Deposit Insurance Funds Act of 1996. The law required the 

Special Reserve to be excluded from the calculation of the SAIF reserve ratio, but the reserve was 

eliminated November 12, 1999, with enactment of 

the Gramm-Leach-Bliley Act of 1999. Based on 

the full balance of the SAIF, the fund’s reserve 

ratio was 1.44 percent on September 30, up from 

1.43 percent on June 30. Excluding the Special 

Reserve, the SAIF reserve ratio was 1.30 percent 

at the end of the third quarter, compared to 1.29 

percent in the prior quarter. One SAIF member, 

with total assets of $69 million, failed during the 

third quarter, the first SAIF-member failure since 

1996. 

FICO assessments. All FDIC-insured institutions are assessed by the Financing Corporation 

(FICO) to pay interest on 30-year bonds issued 

by the FICO in the late 1980s. For the fourth 

quarter of 1999, the rate for SAIF-assessable 

deposits was 5.92 basis points (annualized), and 

the rate for BIF-assessable deposits was 1.18 

basis points, or one-fifth of the SAIF rate, as set 

by statute. Beginning January 1, 2000, all 

insured institutions will pay the same rate. Based 

on the combined BIF and SAIF assessment 

bases as of September 30, the FICO rate for all 

insured institutions for the first quarter of 2000 is 

estimated to be 2.12 basis points (annualized). 

BIF INSURANCE LOSSES, 

1992–1999 $ Million 

4,000 

$3,666 

3,000 

2,000 

1,000 

$645 $760 

0 

$182 $87 $40 $4 $179 

1992 1993 1994 1995 1996 1997 1998 1999* 

*Estimated through September 30. 

FDIC Quarterly Banking Profile 

Third Quarter 1999 15 All FDIC-Insured Institutions 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(dollar figures in millions) 1999** 1998** 1998 1997 1996 1995 1994 

Number of institutions reporting.............................. 10,271 10,623 10,463 10,922 11,452 11,970 12,603 

Total assets.........................................................$ 6,655,966 $6,324,278 $6,529,333 $6,041,136 $5,606,608 $5,338,418 $5,019,085 

Total deposits...................................................... 4,405,284 4,203,240 4,386,295 4,125,862 3,925,058 3,769,480 3,611,618 

Number of problem institutions................................. 80 88 84 92 117 193 318 

Assets of problem institutions (in billions).................. $8 $8 $11 $6 $12 $31 $73 

Number of failed/assisted institutions........................ 6 3 3 1 6 8 15 

Assets of failed/assisted institutions (in billions)......... $1.38 $0.37 $0.37 $0.03 $0.22 $1.21 $1.57 

** As of September 30. 

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

(dollar figures in millions) 

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

Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter %Change 

1999 1999 1998 98:3-99:3 

 10,271 10,327 10,623 -3.3 

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

CONDITION DATA 

... 1,878,093 1,864,522 1,842,669 1.9 

Total assets..................................................................... $6,655,966 $6,593,504 $6,324,279 5.2

 Loans secured by real estate.......................................... 2,107,267 2,029,670 1,934,769 8.9 

1-4 Family residential................................................... 1,330,892 1,282,885 1,249,988 6.5 

Home equity loans...................................................... 115,367 109,299 114,237 1.0 

Multifamily residential property....................................... 105,561 99,553 96,813 9.0 

Commercial real estate................................................... 455,843 441,101 404,018 12.8 

Construction, development, and land................................. 151,817 144,185 125,084 21.4 

Other real estate loans................................................... 63,154 61,946 58,866 7.3 

Commercial & industrial loans 972,405 959,765 893,349 8.8

 Loans to individuals...................................................... 590,981 591,997 605,826 -2.5

 Credit cards & related plans.......................................... 202,617 205,646 227,133 -10.8

 Other loans & leases...................................................... 460,369 472,269 423,670 8.7

 Less: Unearned income & contra accounts........................ 3,752 3,740 4,356 -13.9

 Total loans & leases......................................................... 4,127,269 4,049,961 3,853,258 7.1

 Less: Reserve for losses................................................... 65,296 64,580 64,229 1.7 

Net loans and leases......................................................... 4,061,974 3,985,381 3,789,029 7.2 

Securities........................................................................ 1,319,335 1,297,233 1,178,187 12.0 

Other real estate owned...................................................... 4,148 4,268 5,062 -18.1 

Goodwill and other intangibles............................................. 102,537 100,974 91,132 12.5 

All other assets.................................................................. 1,167,972 1,205,648 1,260,869 -7.4 

Total liabilities and capital................................................... 6,655,966 6,593,504 6,324,279 5.2

 Deposits....................................................................... 4,405,285 4,380,038 4,203,241 4.8

 Other borrowed funds...................................................... 1,303,238 1,274,649 1,150,213 13.3

 Subordinated debt............................................................ 79,076 77,516 71,647 10.4

 All other liabilities............................................................ 302,705 298,890 346,900 -12.7

 Equity capital.................................................................. 565,663 562,411 552,279 2.4 

Loans and leases 30-89 days past due................................. 45,957 43,386 45,062 2.0 

Noncurrent loans and leases................................................ 38,061 36,821 35,836 6.2 

Restructured loans and leases............................................. 3,211 3,566 4,625 -30.6 

Direct and indirect investments in real estate........................... 857 927 1,077 -20.5 

Mortgage-backed securities................................................ 668,864 666,134 625,998 6.8 

Earning assets.................................................................. 5,830,044 5,774,351 5,514,495 5.7 

FHLB Advances (Source: TFR and FHFB).............................. 357,868 321,512 242,700 47.5 

Unused loan commitments................................................... 4,075,493 3,908,099 3,796,905 7.3 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

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

Qtrs 1999 Qtrs 1998 %Change 1999 1998 98:3-99:3 

$328,603 $324,765 1.2 $111,849 $110,597 1.1 

... 160,842 166,551 -3.4 54,804 56,880 -3.6

... 167,761 158,213 6.0 57,045 53,717 6.2 

... 16,756 17,808 -5.9 5,655 7,029 -19.5 

113,286 96,194 17.8 39,413 32,720 20.5 

... 168,409 156,725 7.5 56,074 53,311 5.2 

1,829 3,986 -54.1 79 1,331 -94.1 

35,031 29,031 20.7 12,540 9,403 33.4 

... -37 492 N/M 0 -26 N/M

62,644 55,323 13.2 22,267 17,998 23.7 

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

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 16 Third Quarter 1999 
 

 

 

 

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0

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0 

TABLE III-C. Selected Insurance Fund Indicators 

(dollar figures in millions) Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter %Change 

1999 1999 1998 98:3-99:3 

Bank Insurance Fund* 

Reserve ratio (%)**.................................................................. 1.38 1.40 1.41 -2.1 

Fund balance (unaudited)......................................................... $29,499 $29,831 $29,101 1.4 

Estimated insured deposits...................................................... 2,132,952 2,128,188 2,064,123 3.3 

SAIF-member Oakars............................................................ 43,049 42,293 35,621 20.9 

BIF-members..................................................................... 2,089,903 2,085,896 2,028,502 3.0 

Assessment base..................................................................... 2,975,537 2,951,933 2,842,894 4.7 

SAIF-member Oakars............................................................ 44,798 43,887 37,022 21.0 

BIF-members..................................................................... 2,930,739 2,908,046 2,805,872 4.5 

Savings Association Insurance Fund 

Reserve ratio (%)**.................................................................. 1.44 1.43 1.39 3.6 

Fund balance (unaudited)......................................................... $10,205 $10,066 $9,731 4.9 

Estimated insured deposits...................................................... 707,891 704,934 701,031 1.0 

BIF-member Oakars............................................................ 264,868 262,161 280,107 -5.4 

SAIF-member Sassers......................................................... 68,760 67,388 61,697 11.4 

Other SAIF members............................................................ 374,263 375,385 359,227 4.2 

Assessment base..................................................................... 756,960 749,423 740,558 2.2 

BIF-member Oakars............................................................ 265,401 262,549 282,285 -6.0 

SAIF-member Sassers......................................................... 78,067 75,650 67,882 15.0 

Other SAIF members............................................................ 413,492 411,224 390,391 5.9 

* Includes U.S. branches of foreign banks. 

** Fund balance as a percent of estimated insured deposits. Insured deposits for prior periods may reflect adjustments. For SAIF, the fund balance

 and reserve ratio include the $978 million SAIF Special Reserve, which existed from 1/1/99 to 11/12/99. Net of the Special Reserve, the SAIF

 reserve ratio was 1.30 percent at the end of the third quarter 1999 and 1.29 percent at the end of the second quarter 1999.

 Insurance Fund Reserve Ratios* Fund Balance and Insured Deposits

 Percent of Insured Deposits ($ Millions 

 BIF-Fund BIF-Insured SAIF Fund 

Balance Deposits Balance

-0.01 

0.69 

1.30 1.34 1.30 

1.38 1.36 1.37 1.39 1.40 1.38 

0.04 

0.17 

0.28 

0.47 

1.41 1.43 1.44 1.41 

1.15 

BIF 

SAIF 

Target Ratio 

12/92 -101 1,945,550 279 

1.25 

12/93 13,122 1,905,245 1,157

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

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

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

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

12/98 29,612 2,134,437 9,840 

3/99 29,852 2,123,618 9,937 

6/99 29,831 2,128,188 10,066 

9/99 29,499 2,132,952 10,205 

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

*Insurance fund balance as a percent of total insured deposits. *Insured deposit amounts are estimates. 

The SAIF balance includes the $978-million SAIF Special Reserve. 1999 fund balance amounts are unaudited. 

Net of the Special Reserve, the SAIF reserve ratio was 1.27 percent, 

1.29 percent and 1.30 percent for 3/99, 6/99 and 9/99, respectively. 

TABLE IV-C. Closed/Assisted Institutions 

 SAIF-Insured 

 Deposits

732,159 

697,885 

693,610 

711,897 

683,403 

689,915 

716,028 

707,029 

704,934 

707,891 

(dollar figures in millions) 

1999* 1998* 1998 1997 1996 1995 1994 

BIF Members 

Number of institutions............................................................ 5 3 3 1 5 6 13 

Total assets........................................................................ $1,309 $371 $371 $27 $182 $753 $1,392 

SAIF Members 

Number of institutions............................................................ 1 0 0 0 1 2 2 

Total assets........................................................................ $69 $0 $0 $0 $35 $426 $129 

* Through September 30. 

FDIC Quarterly Banking Profile 

Third Quarter 1999 17 All FDIC-Insured Institutions 

 7
 

 

 

 

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

(dollar figures in millions) 1999** 1998** 1998 1997 1996 1995 1994 

BIF Members 

Number of institutions reporting................................................... 8,877 9,031 9,161 9,404 9,823 10,243 10,760 

BIF-member Oakars............................................................... 728 742 768 778 793 807 719 

Other BIF-members............................................................... 8,149 8,289 8,393 8,626 9,030 9,436 10,041 

Total assets..............................................................................$ 5,780,643 $5,572,069 $5,701,155 $5,285,412 $4,857,761 $4,577,897 $4,248,300 

Total deposits........................................................................... 3,864,428 3,701,055 3,843,814 3,611,453 3,404,203 3,225,649 3,062,717 

Net income.............................................................................. 56,228 49,597 64,349 61,462 54,483 50,779 46,882 

Return on assets (%).................................................................. 1.31 1.22 1.18 1.22 1.17 1.15 1.14 

Return on equity (%).................................................................. 15.25 14.21 13.81 14.44 14.14 14.32 14.43 

Noncurrent assets plus OREO to assets (%)................................. 0.65 0.65 0.64 0.67 0.77 0.89 1.06 

Number of problem institutions................................................... 69 69 68 73 86 151 264 

Assets of problem institutions...................................................... $4,206 $5,413 $5,326 $4,598 $6,624 $20,166 $42,311 

Number of failed/assisted institutions............................................. 5 3 3 1 5 6 13 

Assets of failed/assisted institutions............................................. $1,309 $371 $371 $27 $182 $753 $1,392 

SAIF Members 

Number of institutions reporting................................................... 1,394 1,432 1,462 1,518 1,629 1,727 1,843 

SAIF-member Oakars............................................................ 118 115 117 112 94 77 55 

Other SAIF-members............................................................... 1,276 1,317 1,345 1,406 1,535 1,650 1,788 

Total assets.............................................................................. $875,322 $752,208 $828,177 $755,724 $748,847 $760,520 $770,785 

Total deposits........................................................................... 540,856 502,185 542,481 514,408 520,854 543,831 548,900 

Net income.............................................................................. 6,416 5,725 7,598 6,485 4,883 5,584 4,101 

Return on assets (%).................................................................. 1.01 1.06 0.98 0.94 0.67 0.76 0.56 

Return on equity (%).................................................................. 12.15 12.11 11.34 11.13 8.07 9.47 7.16 

Noncurrent assets plus OREO to assets (%)................................. 0.68 0.81 0.80 0.98 1.07 1.12 1.23 

Number of problem institutions................................................... 11 19 16 19 31 42 54 

Assets of problem institutions...................................................... $3,912 $2,953 $5,992 $1,662 $5,548 $10,846 $30,336 

Number of failed/assisted institutions............................................. 1 0 0 0 1 2 2 

Assets of failed/assisted institutions............................................. $69 $0 $0 $0 $35 $426 $129 

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

** Through September 30, ratios annualized where appropriate. 

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

(dollar figures in millions) 

September 30, 1999 

Commercial Banks and Savings Institutions 

Number of Total Domestic 

Institutions Assets Deposits* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks............................................. 8,621 $5,506,529 $3,099,738 $1,934,439 $268,567 $2,203,006 

BIF-member........................................................................ 8,513 5,426,749 3,045,050 1,919,780 238,185 2,157,965 

SAIF-member..................................................................... 108 79,780 54,688 14,659 30,382 45,041 

FDIC-Supervised.................................................................. 5,234 992,375 735,098 495,201 61,761 556,962 

OCC-Supervised.................................................................. 2,384 3,227,414 1,765,100 1,104,823 154,426 1,259,248 

Federal Reserve-Supervised................................................... 1,003 1,286,740 599,540 334,415 52,380 386,796 

FDIC-Insured Savings Institutions............................................. 1,650 1,149,437 702,769 197,444 439,324 636,767 

OTS-Supervised Savings Institutions.......................................... 1,111 862,742 502,771 72,914 383,932 456,846 

BIF-member........................................................................ 42 127,082 59,100 45,649 9,669 55,319 

SAIF-member..................................................................... 1,069 735,660 443,671 27,264 374,263 401,527 

FDIC-Supervised State Savings Banks....................................... 539 286,695 199,998 124,530 55,391 179,921 

BIF-member........................................................................ 322 226,813 157,539 123,405 17,013 140,418 

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

Total Commercial Banks and 

 217 59,883 42,460 1,125 38,378 39,503 

Savings Institutions................................................... 10,271 6,655,966 3,802,507 2,131,882 707,891 2,839,773 

BIF-member........................................................................... 8,877 5,780,644 3,261,688 2,088,834 264,868 2,353,701 

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

Other FDIC-Insured Institutions 

 1,394 875,323 540,818 43,049 443,023 486,072 

U.S. Branches of Foreign Banks................................................ 20 8,747 3,117 1,069 0 1,069 

Total FDIC-Insured Institutions.......................................... 10,291 6,664,713 3,805,624 2,132,952 707,891 2,840,843 

* Excludes $603 billion in foreign office deposits, which are uninsured. 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 18 Third Quarter 1999 
TABLE VII-C. Assessment Base Distribution and Rate Schedules 

BIF Assessment Base Distribution 

Assessable Deposits in Millions as of September 30, 1999 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2000 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

8,320 

 $2,887,795 

 157 

 $23,312 

 2 

 $213 

93.5% 

97.1% 

1.8% 

0.8% 

0.0% 

0.0% 

331 3.7% 

$58,334 2.0% 

13 0.1% 

$891 0.0% 

0 0.0% 

$0 0.0% 

50 

$2,583 

12 

$1,844 

12 

$565 

0.6% 

0.1% 

0.1% 

0.1% 

0.1% 

0.0% 

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

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

by on-site examinations. 

SAIF Assessment Base Distribution 

Assessable Deposits in Millions as of September 30, 1999 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2000 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

 1,274 

 $727,836 

 24 

 $5,254 

 0 

 $0 

91.4% 

96.2% 

1.7% 

0.7% 

0.0% 

0.0% 

77 5.5% 

$18,592 2.5% 

5 0.4% 

$1,542 0.2% 

0 0.0% 

$0 0.0% 

6 

$984 

7 

$2,702 

1 

$49 

0.4% 

0.1% 

0.5% 

0.4% 

0.1% 

0.0% 

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

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

by on-site examinations. 

Assessment Rate Schedules 

First Semiannual 2000 Assessment Period 

Cents Per $100 of Assessable Deposits 

Capital Group 

Supervisory Risk Subgroup 

A B C 

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

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

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

 0 

 3 

 10 

3 

10 

24 

17 

24 

27 

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

Currently, the rate schedules are identical. 

FDIC Quarterly Banking Profile 

Third Quarter 1999 19 All FDIC-Insured Institutions 
NUMBER OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1991–1999 

Number of Institutions 

12/91 12/92 12/93 12/94 12/95 12/96 3/97 6/97 9/97 12/97 3/98 6/98 9/98 12/98 3/99 6/99 9/99 

1,063 

Savings Institutions 

Commercial Banks 

98 

572 

92 84 103 82 88 76 80 

193 

117 112 

318 

84 80 

1,426 

Savings Institutions 410 276 146 71 49 35 35 29 27 21 16 18 18 15 16 14 11 

Commercial Banks 1,016 787 426 247 144 82 77 74 71 71 68 64 70 69 64 62 69 

ASSETS OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1991–1999 

$ Billions 

$819 

Savings Institutions 

Commercial Banks 

$592 

$334 

$72 $31 $12 $10 $8 $6 $6 $7 $8 $8 $11 $10 $9 $8 

12/91 12/92 12/93 12/94 12/95 12/96 3/97 6/97 9/97 12/97 3/98 6/98 9/98 12/98 3/99 6/99 9/99 

Savings Institutions 291 184 92 39 14 7 5 3 2 2 2 3 3 6 5 4 4 

Commercial Banks 528 408 242 33 17 5 5 5 4 5 5 5 5 5 5 5 4 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 20 Third Quarter 1999 
NOTES TO USERS 

This publication contains financial data and other information 

for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding the 

comparability of source data and reporting differences over 

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

FDIC-Insured Commercial Banks 

(Tables I-A through V-A.) 

This section covers commercial banks insured by the FDIC 

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

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

the three federal commercial bank regulators (the Board of 

Governors of the Federal Reserve System, the FDIC or the 

Office of the Comptroller of the Currency). 

FDIC-Insured Savings Institutions 

(Tables I-B through V-B.) 

This section covers savings institutions insured by either BIF 

or SAIF that operate under state or federal banking codes 

applicable to thrift institutions, except for one self-liquidating 

institution primarily funded by the FSLIC Resolution Fund 

(FRF). Savings institutions in Resolution Trust Corporation 

conservatorships are also excluded from these tables while 

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

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

Office of Thrift Supervision (OTS). 

FDIC-Insured Institutions by Insurance Fund 

(Tables I-C through VII-C.) 

Summary balance-sheet and earnings data are provided for 

commercial banks and savings institutions according to 

insurance fund membership. BIF-member institutions may 

acquire SAIF-insured deposits, resulting in institutions with 

some deposits covered by both insurance funds. Also, SAIF 

members may acquire BIF-insured deposits. The insurance 

fund membership does not necessarily reflect which fund 

insures the largest percentage of an institution’s deposits. 

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

each include deposits from both insurance funds. Depository 

institutions that are not insured by the FDIC through either 

the BIF or SAIF are not included in the FDIC Quarterly 

Banking Profile. U.S. branches of institutions headquartered 

in foreign countries and non-deposit trust companies are not 

included unless otherwise indicated. Efforts are made to 

obtain financial reports for all active institutions. However, in 

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

DATA SOURCES 

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Call Reports and the OTS 

Thrift Financial Reports submitted by all FDIC-insured 

depository institutions. This information is stored on and 

retrieved from the FDIC’s Research Information System 

(RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting 

and accounting requirements of the FFIEC Call Reports. 

Beginning in March 1997, both Thrift Financial Reports and 

Call Reports are completed on a fully consolidated basis. 

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

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

subsidiary institution reports are included in the Quarterly 

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

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

All asset and liability figures used in calculating performance 

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

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

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

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

rates represent the percentage change over a 12-month 

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

institutions in the current period. 

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

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

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

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

ACCOUNTING CHANGES 

Adoption of GAAP Reporting — Effective with the March 

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

New reporting instructions for 1997 and 1998 changed the 

amounts reported for a number of items used in the 

Quarterly Banking Profile, so that comparability with prior 

periods may be affected. Among the items most significantly 

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

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

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

March 1997 and in March 1998 is contained in Financial 

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

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

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

Information on changes to the March 31, 1997 Thrift 

Financial Reports is available from the Office of Thrift 

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

telephone (202) 906-5900. 

Subchapter S Corporations — The Small Business Job 

Protection Act of 1996 changed the Internal Revenue Code 

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

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

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

federal income taxes at the corporate level. Its taxable 

income flows through to its shareholders in proportion to their 

stock ownership, and the shareholders generally pay federal 

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

FDIC Quarterly Banking Profile 

Third Quarter 1999 21 Notes to Users 
have the effect of reducing institutions’ reported taxes and 

increasing their after-tax earnings. 

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

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

DEFINITIONS (in alphabetical order) 

All other assets — total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

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

agreements to resell, and other assets. Beginning 3/31/97, 

Federal funds sold are reported on a consolidated basis 

(domestic and foreign offices combined). Previously, Federal 

funds sold through foreign offices were reported as loans. 

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

sheet credit losses, and other liabilities. 

Assessment base distribution — each institution’s capital 

category is calculated or estimated from its financial report 

and does not reflect supervisory upgrades or downgrades: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) Capital * Capital * Leverage Equity 

Well-capitalized >10 and >6 and >5 — 

Adequately 

capitalized >8 and >4 and >4 — 

Undercapitalized >6 and >3 and >3 — 

Significantly 

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

Critically 

undercapitalized — — — <2 

*As a percentage of risk-weighted assets. 

For purpose of BIF and SAIF assessments, risk-based 

assessment rules combine the last three capital rating categories into a single “undercapitalized” group. Supervisory 

risk subgroup assignments are based on supervisory ratings. 

The strongest institutions (those rated 1 or 2) are in subgroup 

A, those rated 3 are in subgroup B, and those rated 4 or 5 

are in subgroup C. 

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

Construction and development loans — includes loans for 

all property types under construction, as well as loans for 

land acquisition and development. 

Core capital — common equity capital plus noncumulative 

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

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

with supervisory capital regulations. 

Cost of funding earning assets — total interest expense 

paid on deposits and other borrowed money as a percentage 

of average earning assets. 

Derivative contracts, gross fair values (positive/negative) — are reported separately and represent the amount at 

which a contract could be exchanged in a transaction 

between willing parties, other than in a forced or liquidation 

sale. If a quoted market price is available for a contract, the 

fair value reported for that contract is calculated using this 

market price. If quoted market prices are not available, the 

reporting banks use the best estimate of fair value based on 

quoted market prices of similar contracts or on valuation techniques such as discounted cash flows. This information is 

reported only by banks with assets greater than $100 million. 

Direct and indirect investments in real estate — excludes 

loans secured by real estate and property acquired through 

foreclosure. 

Earning assets — all loans and other investments that earn 

interest or dividend income. 

Efficiency Ratio — Noninterest expense less amortization 

of intangible assets as a percent of net interest income plus 

noninterest income. This ratio measures the proportion of net 

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

Estimated insured deposits — 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 

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

“assisted” when the institution remains open and receives 

some insurance funds in order to continue operating. 

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

furnished by the Federal Housing Finance Board (FHFB) for 

Call filers and reported by TFR filers. 

Goodwill and other intangibles — intangible assets 

include servicing rights, purchased credit card relationships 

and other identifiable intangible assets. 

Loans secured by real estate — includes home equity 

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

and all other loans secured by real estate. 

Loans to individuals — includes outstanding credit card 

balances and other secured and unsecured consumer loans. 

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

with remaining maturities or repricing intervals of over five years. 

Mortgage-backed securities — certificates of participation 

in pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored 

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

Net charge-offs — total loans and leases charged off 

(removed from balance sheet because of uncollectibility), 

less amounts recovered on loans and leases previously 

charged off. 

Net interest margin — the difference between interest and 

dividends earned on interest-bearing assets and interest 

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

made for interest income that is tax exempt. 

Net operating income — income excluding discretionary 

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

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

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

in nonaccrual status. 

FDIC Quarterly Banking Profile 

Notes to Users 22 Third Quarter 1999 
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 swap, futures, forward and option contracts), foreign-exchange-rate contracts, commodity contracts and equity contracts (defined similarly to interest-rate 

contracts). 

Futures and forward contracts — a contract in which the 

buyer agrees to purchase and the seller agrees to sell, at a 

specified future date, a specific quantity of an underlying variable or index at a specified price or yield. These contracts 

exist for a variety of variables or indices, (traditional agricultural or physical commodities, as well as currencies and interest rates). Futures contracts are standardized and are traded 

on organized exchanges which set limits on counterparty 

credit exposure. Forward contracts do not have standardized 

terms and are traded over the counter. 

Option contracts — a contract in which the buyer acquires 

the right to buy from or sell to another party some specified 

amount of an underlying variable or index at a stated price 

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

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

discretion of the buyer of the contract. 

Swaps — an obligation between two parties to exchange a 

series of cash flows at periodic intervals (settlement dates), 

for a specified period. The cash flows of a swap are either 

fixed, or determined for each settlement date by multiplying 

the quantity (notional principal) of the underlying variable or 

index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each 

payment but is not exchanged. 

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

issued to the U.S. Treasury, other borrowed money, mortgage indebtedness, obligations under capitalized leases and 

trading liabilities, less revaluation losses on assets held in 

trading accounts. 

Other real estate owned — primarily foreclosed property. 

Direct and indirect investments in real estate ventures are 

excluded. The amount is reflected net of valuation 

allowances. For institutions that file a Thrift Financial Report 

(TFR), the valuation allowance subtracted also includes 

allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported 

gross of valuation allowances. 

Percent of institutions with earnings gains — the percent 

of institutions that increased their net income (or decreased 

their losses) compared to the same period a year earlier. 

“Problem” institutions — federal regulators assign a composite rating to each financial institution, based upon an evaluation of financial and operational criteria. The rating is 

based on a scale of 1 to 5 in ascending order of supervisory 

concern. “Problem” institutions are those institutions with 

financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending upon the 

degree of risk and supervisory concern, they are rated either 

a “4” or “5”. For all BIF-member institutions, and for all SAIFmember institutions for which the FDIC is the primary federal regulator, FDIC composite ratings are used. For all SAIFFDIC Quarterly Banking Profile 

member institutions whose primary federal regulator is the 

OTS, the OTS composite rating is used. 

Reserves for losses — the allowance for loan and lease 

losses and the allocated transfer risk reserve on a consolidated basis. Prior to March 31, 1997, institutions filing a Thrift 

Financial Report (TFR) included specific reserves, while Call 

Report filers included only general valuation allowances. 

Beginning March 31, 1997, TFR reporters net these specific 

reserves against each loan balance. Also beginning March 

31, 1997, the allowance for off-balance-sheet credit exposures was moved to “Other liabilities”; previously, it had been 

included in the general valuation allowance. 

Restructured loans and leases — loan and lease financing 

receivables with terms restructured from the original contract. Excludes restructured loans and leases that are not in 

compliance with the modified terms. 

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

securities and extraordinary items) as a percentage of average total assets. The basic yardstick of bank profitability. 

Return on equity — net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total equity capital. 

Risk-weighted assets — assets adjusted for risk-based 

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

off-balance-sheet items multiplied by risk-weights that range 

from zero to 100 percent. A conversion factor is used to 

assign a balance sheet equivalent amount for selected offbalance-sheet accounts. 

SAIF-insured deposits (estimated) — the portion of estimated insured deposits that is insured by the SAIF. For BIFmember “Oakar” institutions, it represents the adjusted attributable amount acquired from SAIF members. 

Securities — excludes securities held in trading accounts. 

Banks’ securities portfolios consist of securities designated 

as “held-to-maturity”, which are reported at amortized cost 

(book value), and securities designated as “available-forsale”, reported at fair (market) value. 

Securities gains (losses) — realized gains (losses) on 

held-to-maturity and available-for-sale securities, before 

adjustments for income taxes. Thrift Financial Report (TFR) 

filers also include gains (losses) on the sales of assets held 

for sale. 

Troubled real estate asset rate — noncurrent real estate 

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

estate loans and other real estate owned. 

Unearned income & contra accounts — unearned income 

and loans-in-process for TFR filers. Beginning March 31 

1997, TFR filers net the unearned income and the loans-inprocess against each loan balance, leaving just the 

unearned income on loans reported by Call Report filers. 

Unused loan commitments — includes credit card lines, 

home equity lines, commitments to make loans for construction, loans secured by commercial real estate, and unused 

commitments to originate or purchase loans. 

Volatile liabilities — the sum of large-denomination time 

deposits, foreign-office deposits, federal funds purchased, 

securities sold under agreements to repurchase, and other 

borrowings. 

Yield on earning assets — total interest, dividend and fee 

income earned on loans and investments as a percentage of 

average earning assets. 

Third Quarter 1999 23 Notes to Users