Donald E. Powell, Chairman 

Third Quarter 2001 

Division of Research 

& Statistics 

Don Inscoe 

Associate Director 

Statistics Branch 

(202) 898-3940 

Kevin Brown 

(202) 898-6817 

Tim Critchfield 

(202) 898-8557 

Ross Waldrop 

(202) 898-3951 

Jim McFadyen 

COMMERCIAL BANK PERFORMANCE — THIRD QUARTER 2001 

n Earnings Declines At Large Banks Cause Drop In Industry Profits 

n A Majority Of Banks Report Higher Net Income 

n Quarterly Loss Provisions Reach Highest Level In More Than 10 Years 

n Loan Growth Continues To Slow While Deposit Growth Remains Strong 

n Asset-Quality Indicators Show Further Deterioration 

Higher Loss Provisions Hold Down 

Industry Earnings 

Insured commercial banks reported net income of 

$17.4 billion in the third quarter of 2001, a decline 

of $1.9 billion (9.9 percent) from the third quarter of 

2000. The largest factor in the earnings decline 

was a $4.8-billion (71.7-percent) increase in provisions for loan losses. Banks set aside $11.6 billion 

during the quarter to cover expected loan losses, 

the largest quarterly addition to reserves since the 

fourth quarter of 1990. Adding to the downward 

pressure on earnings was a $459-million (1.2-percent) decline in noninterest income. The industry’s 

noninterest revenues were $361 million lower than 

in the second quarter, marking the second quarter 

in a row that they have declined. A $2.9-billion (5.7-

percent) increase in net interest income and a 

COMMERCIAL BANKS’ EARNINGS DECLINED 

IN THE THIRD QUARTER 

$ Billions 

25 

Securities and Other Gains/Losses, Net 

Net Operating Income 19.4 19.5 19.3 19.9 19.2 

18.0 

20 

17.7 17.7 17.4 16.9 15.9 16.1 14.6 15.0 14.8 15 14.5 14.6 14.7 15.3 

10 

5 

0 

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

1997 1998 1999 2000 2001 

$1.7-billion improvement in proceeds from sales of 

securities from the third quarter of last year helped 

limit the drop in profits. Net operating income, 

which excludes results from securities sales and 

other nonrecurring items, was $3.3 billion (16.6 

percent) lower than a year earlier. The industry’s 

return on assets (ROA) fell to 1.08 percent in the 

quarter, compared to 1.28 percent a year earlier. 

Through the first three quarters of the year, commercial banks earned $55.8 billion, $2.5 billion (4.6 

percent) more than in the same period of 2000, 

although net operating income was $1.3 billion (2.4 

percent) lower. The ROA for the first nine months 

of this year was 1.17 percent, down from 1.20 percent a year earlier. 

More Than Half of All Banks Report 

Higher Earnings 

Most of the decline in industry profits occurred at 

large banks that had sizable expenses for assetquality problems. More than half — 55.1 percent — 

of all commercial banks reported higher quarterly 

earnings than a year ago. However, only 44.9 percent reported higher quarterly ROAs than a year 

earlier, and the average ROAs for all four asset-size 

groups were down from a year ago. The largest 

decline was registered by banks with more than 

$10 billion in assets; their average ROA fell from 

1.24 percent to 1.01 percent. Loss provisions 

absorbed 13.8 percent of this group’s net operating 

revenues (net interest income plus total noninterest 

income), compared to 9.3 percent for commercial 

banks with less than $10 billion in assets. 

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. 
Net Interest Margins Improve at Larger large portfolio of subprime mortgages1. Home mortBanks gage charge-offs rose to $938 million in the quarter, 

As was the case in the second quarter, declining shortterm interest rates helped improve net interest margins 

at larger banks. The industry’s net interest margin 

improved from 3.90 percent in the second quarter to 

3.93 percent in the third quarter, the same level as in 

the third quarter of last year. Many community banks 

did not see their margins improve, however. The average margin at banks with less than $100 million in 

assets remained unchanged from the second quarter, 

at 4.26 percent, after declining in each of the previous 

four quarters. This is well below the group’s average 

of 4.59 percent in the third quarter of 2000. More than 

half of all banks – 54.2 percent – had higher net interest margins than in the second quarter, but only onethird (33.4 percent) had higher margins than a year 

ago. 

NET INTEREST MARGINS IMPROVED AT MANY 

BANKS DURING THE THIRD QUARTER 

Net Interest Margin (%) 

5.0 

4.5 

4.0 

3.5 

1234123412341234123 

Assets < $1 Billion 4.37 

Assets > $1 Billion 3.84 

1997 1998 1999 2000 2001 

Loan Losses and Troubled Loans 

Continue to Climb 

Banks charged-off $9.2 billion in loans during the quarter, an increase of $3.6 billion (63.3 percent) from last 

year’s third quarter. While much of the increase 

occurred at large banks, slightly more than half (51.0 

percent) of all commercial banks reported higher 

charge-offs compared to a year ago. As has been the 

case for almost two years, roughly one-third (35.7 percent) of banks’ loan losses came from their commercial and industrial (C&I) loan portfolios. Net 

charge-offs of C&I loans totaled $3.3 billion, an 

increase of $1.5 billion (83.6 percent) from a year ago. 

The net charge-off rate on C&I loans was 1.30 percent, 

up from 0.69 percent in the third quarter of 2000. Loan 

losses were also higher in several other loan categories. Net charge-offs of residential mortgage loans 

rose sharply in the third quarter, as one bank sold a 

compared to $203 million a year earlier. Net chargeoffs on leases totaled $332 million, an increase of $211 

million. 

THE INDUSTRY’S ABILITY TO ABSORB CREDIT 

LOSSES REMAINS STRONG 

Percent of Total Assets 

12 

10 

8 

6 

4 

2 

0 

Noncurrent Loans 

Equity Capital 

Reserves 

Pre-Tax Income* 

1984 1986 1988 1990 1992 1994 1996 1998 2000 

*Excludes earnings retained in equity capital. 

The amount of loans that were noncurrent (90 days or 

more past due or in nonaccrual status) also continued 

to increase, but not as rapidly as charge-offs. Total 

noncurrent loans and leases rose by $3.1 billion during 

the third quarter, to $51.8 billion, or 1.34 percent of all 

loans and leases, a seven-year high. Over the twelve 

months ending September 30, noncurrent loans 

increased by $12.9 billion (33.3 percent). C&I loans 

accounted for $1.1 billion (36.1 percent) of the quarterly increase, and $6.1 billion (47.1 percent) of the 12-

month increase. The percentage of C&I loans that 

were noncurrent rose from 2.03 percent to 2.17 percent during the quarter. This is the highest noncurrent 

rate since the third quarter of 1993. Other loan categories that registered sizable increases during the 

quarter include loans secured by commercial real 

estate properties, where noncurrent loans grew by 

$523 million (12.5 percent), and real estate construction and development loans, where noncurrent loans 

were up by $375 million (22.7 percent). 

Banks Make Largest Quarterly Addition to 

Loss Reserves Since 1990 

The $11.6 billion in quarterly loss provisions set aside 

by commercial banks exceeded the $9.2 billion in 

loans that were charged-off by $2.3 billion, as the 

industry’s reserves for loan losses increased by more 

than $2.4 billion. This is the largest quarterly increase 

1 Bank of America NA charged-off $674 million in home mortgage 

loans in the quarter as it sold off a large portfolio of subprime mortgages. This accounted for 86.7 percent of the industry’s increase 

in mortgage charge-offs. 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 Third Quarter 2001 
TROUBLED C&I LOANS CONTINUE TO GROW 

$ Billions 

30 

25 

20 

15 

10 

5 

0 

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

Quarterly Net Charge-offs 

Noncurrent Loans 

7.4 

25.2 

21.9 

3.3 

1996 1997 1998 1999 2000 2001 

in industry reserves since the fourth quarter of 1990. 

The growth in reserves, combined with the lack of loan 

growth, lifted the industry’s ratio of reserves to total 

loans to 1.77 percent, its highest level since the first 

quarter of 1999. However, the sharp increase in noncurrent loans during the quarter meant that the industry’s “coverage ratio” fell from $1.35 in reserves for 

every $1.00 in noncurrent loans to $1.32, its lowest 

level since the first quarter of 1994. 

Intangible Assets, Revaluation Gains 

Provide Record Boost to Equity Capital 

Commercial banks’ total equity capital increased by 

$28.6 billion (5.1 percent) during the quarter, the 

largest quarterly increase ever. The industry’s equity 

capital ratio rose from 8.76 percent to 8.94 percent 

during the quarter, its highest level since 1940. 

Retained earnings added $3.8 billion, while increases 

in goodwill (up $8.6 billion) and revaluation gains on 

banks’ available-for-sale securities (up $14.3 billion 

before taxes) accounted for much of the rest of the 

increase. Neither goodwill nor revaluation gains are 

included in regulatory capital; consequently, the industry’s core capital “leverage” ratio rose from 7.73 percent to only 7.81 percent during the quarter, and it 

remained slightly below the 7.84-percent level of a 

year ago. 

Net Loans & Leases Post First Quarterly 

Decline In More Than Four Years 

A $15.1-billion decline in C&I loans and a $22.7-billion 

decline in residential mortgage loans caused banks’ 

net loans and leases to fall by $688 million in the third 

quarter. These declines were partially offset by a 

$14.3-billion increase in loans secured by commercial 

real estate properties, and a $10.6-billion increase in 

home equity loans. This is the first time since the first 

quarter of 1997 that the industry has had a decline in 

its net loans. Unused loan commitments continued to 

DETERIORATION IN C&I LOANS HAS BEEN 

GREATER AT LARGE BANKS 

C&I Noncurrent Loan Rate (%) 

6 

5 

4 

3 

2 

1 

0 

grow, increasing by $88.3 billion (1.9 percent), and the 

utilization rate on banks’ loan commitments fell for the 

fifth consecutive quarter. Banks added $41.9 billion in 

mortgage-backed securities during the quarter, while 

assets in trading accounts grew by $38.2 billion. On 

the liabilities side, savings deposits continued to experience strong growth, rising by $68.0 billion (4.0 percent), while overnight borrowings increased by $37.3 

billion (7.3 percent). The industry’s ratio of net loans to 

deposits declined for the second quarter in a row, to its 

lowest level since mid-year 1999. 

Industry Consolidation Slows 

The number of insured commercial banks reporting 

financial results fell to 8,149 banks, from 8,178 at midyear. The net reduction of 29 banks was the smallest 

shrinkage in a quarter since the fourth quarter of 1986. 

There were 30 new banks, while 58 banks were 

absorbed into other institutions through mergers, and 

one commercial bank failed. The number of commercial banks on the FDIC’s “Problem List” declined from 

80 to 74 during the quarter, while total assets of “problem” banks fell from $16.5 billion to $14.4 billion. 

DEPOSIT GROWTH OUT-STRIPS LOAN GROWTH 

FOR FOURTH CONSECUTIVE QUARTER 

$ Billions 

200 

150 

100 

50 

0 

-50 

Assets > $1 Billion 

Assets < $1 Billion 4.09 

1.49 

4.89 

2.26 

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 

Change in 

Domestic 

Deposits 

Change in 

Domestic 

Loans 

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 

FDIC Quarterly Banking Profile 

Third Quarter 2001 3 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

2001* 2000* 2000 1999 1998 1997 1996 

Return on assets (%)............................................. 1.17 1.20 1.19 1.31 1.19 1.23 1.19 

Return on equity (%)............................................. 13.42 14.23 14.02 15.31 13.93 14.68 14.45 

Core capital (leverage) ratio (%).............................. 7.81 7.84 7.70 7.79 7.54 7.56 7.64 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.85 0.70 0.74 0.63 0.65 0.66 0.75 

Net charge-offs to loans (%).................................... 0.83 0.59 0.67 0.61 0.67 0.64 0.58 

Asset growth rate (%)............................................. 8.05 10.05 8.88 5.38 8.53 9.54 6.16 

Net interest margin (%).......................................... 3.84 3.97 3.95 4.07 4.07 4.21 4.27 

Net operating income growth (%).............................. -2.42 2.71 1.80 20.41 2.24 12.46 6.43 

Number of institutions reporting.............................. 8,149 8,375 8,315 8,579 8,773 9,142 9,527 

Percentage of unprofitable institutions (%).................. 7.53 6.65 7.34 7.50 6.11 4.85 4.28 

Number of problem institutions................................. 74 75 76 66 69 71 82 

Assets of problem institutions (in billions).................. $14 $12 $17 $4 $5 $5 $5 

Number of failed/assisted institutions........................ 3 4 6 7 3 1 5 

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

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

(dollar figures in millions) 

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

Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter %Change 

2001 2001 2000 00:3-01:3 

8,149 8,178 8,375 -2.7 

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

CONDITION DATA 

1,671,162 1,690,443 1,655,790 0.9 

 Total assets..................................................................... $6,555,668 $6,360,187 $6,067,230 8.1

 Loans secured by real estate............................................. 1,749,170 1,738,020 1,661,080 5.3

 Commercial & industrial loans.......................................... 1,010,441 1,025,588 1,041,624 -3.0

 Loans to individuals......................................................... 607,555 610,645 584,341 4.0

 Farm loans.................................................................. 48,284 48,924 47,356 2.0

 Other loans & leases...................................................... 448,032 438,645 447,819 0.0

 Less: Unearned income................................................... 2,664 2,767 3,053 -12.7

 Total loans & leases......................................................... 3,860,819 3,859,054 3,779,167 2.2

 Less: Reserve for losses................................................... 68,211 65,758 62,558 9.0

 Net loans and leases......................................................... 3,792,608 3,793,296 3,716,610 2.0

 Securities........................................................................ 1,106,816 1,056,233 1,062,196 4.2

 Other real estate owned................................................... 3,457 3,203 2,825 22.4

 Goodwill and other intangibles.......................................... 111,689 103,409 104,508 6.9

 All other assets............................................................... 1,541,097 1,404,046 1,181,091 30.5 

Total liabilities and capital................................................... 6,555,668 6,360,187 6,067,230 8.1

 Noninterest-bearing deposits............................................. 777,457 753,559 705,287 10.2

 Interest-bearing deposits.................................................. 3,517,220 3,491,170 3,316,305 6.1

 Other borrowed funds...................................................... 1,167,113 1,135,910 1,128,375 3.4

 Subordinated debt............................................................ 92,442 89,580 84,510 9.4

 All other liabilities............................................................ 415,432 332,560 311,440 33.4

 Equity capital.................................................................. 586,004 557,409 521,313 12.4 

Loans and leases 30-89 days past due................................. 52,605 46,777 43,217 21.7 

Noncurrent loans and leases................................................ 51,800 48,673 38,869 33.3 

Restructured loans and leases............................................. 1,073 1,005 1,747 -38.6 

Direct and indirect investments in real estate........................... 252 267 318 -20.9 

1-4 Family residential mortgages.......................................... 931,461 943,565 921,403 1.1 

Mortgage-backed securities................................................ 560,274 518,345 449,592 24.6 

Earning assets.................................................................. 5,584,898 5,478,159 5,257,678 6.2 

Long-term assets (5+ years)................................................ 1,264,539 1,241,863 1,178,645 7.3 

Volatile liabilities............................................................... 2,180,190 2,155,300 2,167,254 0.6 

Foreign office deposits...................................................... 680,900 679,732 694,207 -1.9 

FHLB Advances (Source: FHFB, Call Reports)........................ 191,545 184,041 176,282 8.6 

Unused loan commitments................................................... 4,763,688 4,675,385 4,331,221 10.0 

Derivatives..................................................................... 51,671,161 48,213,007 38,752,074 33.3 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

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

Qtrs 2001 Qtrs 2000 %Change 2001 2000 00:3-01:3 

$310,535 $316,380 -1.9 $100,141 $110,174 -9.1 

153,021 164,029 -6.7 45,881 58,847 -22.0 

157,514 152,351 3.4 54,261 51,327 5.7 

28,001 19,778 41.6 11,578 6,742 71.7 

117,059 113,275 3.3 38,798 39,257 -1.2 

164,768 160,786 2.5 56,168 53,684 4.6 

2,921 -2,490 N/M 1,007 -713 N/M 

28,622 29,208 -2.0 8,973 10,190 -11.9 

-267 14 N/M 6 1 658.9 

55,836 53,377 4.6 17,353 19,257 -9.9 

23,829 15,985 49.1 9,248 5,663 63.3 

39,184 35,238 11.2 13,556 12,475 8.7 

54,086 55,428 -2.4 16,657 19,981 -16.6 

N/M - Not meaningful 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 Third Quarter 2001 
TABLE III-A. First Three Quarters 2001, 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 

8,149 4,598 3,150 321 80 650 1,411 1,738 2,106 1,351 893 

Total assets (in billions).................................... $6,555.7 $225.8 $803.2 $898.2 $4,628.5 $2,343.2 $1,647.8 $1,251.0 $335.6 $269.9 $708.2 

Total deposits (in billions).................................... 4,294.7 190.4 655.3 611.0 2,838.0 1,445.5 1,086.7 817.4 239.4 219.7 485.9 

Net income (in millions).................................... 55,836 1,562 7,128 8,651 38,494 19,382 12,446 9,520 3,525 2,337 8,625 

% of unprofitable institutions.............................. 7.5 11.2 2.7 3.4 1.3 10.3 12.0 6.2 4.5 5.4 11.5 

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

Performance ratios (annualized, %) 

53.3 46.6 61.1 69.5 60.0 63.4 51.3 56.8 50.1 48.2 57.1 

Yield on earning assets.................................... 7.58 8.05 8.10 8.09 7.34 7.34 7.33 7.58 8.09 7.86 8.52 

Cost of funding earning assets........................... 3.73 3.80 3.75 3.75 3.72 3.93 3.53 3.84 3.79 3.46 3.48 

Net interest margin.......................................... 3.84 4.24 4.35 4.34 3.62 3.41 3.79 3.74 4.30 4.40 5.04 

Noninterest income to earning assets.................. 2.86 1.11 1.66 2.61 3.22 3.69 2.36 2.02 2.85 1.56 3.47 

Noninterest expense to earning assets.................. 4.02 3.71 3.81 4.04 4.07 4.39 3.76 3.35 4.33 3.86 4.62 

Loan and lease loss provision to assets............... 0.59 0.27 0.33 0.67 0.63 0.54 0.50 0.69 0.54 0.30 0.89 

Net operating income to assets........................... 1.13 0.94 1.19 1.27 1.11 1.12 1.01 0.99 1.39 1.15 1.62 

Pretax return on assets.................................... 1.77 1.26 1.74 2.00 1.76 1.77 1.58 1.52 2.07 1.64 2.59 

Return on assets............................................. 1.17 0.96 1.23 1.31 1.14 1.15 1.03 1.04 1.42 1.18 1.68 

Return on equity............................................. 13.42 8.49 12.59 13.96 13.80 14.29 11.28 12.36 15.75 12.29 16.69 

Net charge-offs to loans and leases..................... 0.83 0.27 0.35 0.90 0.93 0.96 0.69 0.76 0.69 0.39 1.20 

Loan and lease loss provision to net charge-offs...... 117.51 163.46 144.62 118.04 114.79 111.99 111.51 133.90 116.79 133.58 115.87 

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

Condition Ratios (%) 

58.07 68.82 62.41 55.85 57.37 59.92 58.86 56.02 59.58 63.01 52.44 

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

Loss allowance to: 

85.19 91.82 91.60 89.68 82.89 81.79 84.74 88.42 90.82 89.82 87.35 

Loans and leases.......................................... 1.77 1.40 1.42 1.91 1.82 1.90 1.58 1.69 1.64 1.43 2.18 

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

Noncurrent assets plus 

131.68 125.11 147.57 171.00 123.47 119.05 128.58 125.24 170.06 132.72 179.52 

other real estate owned to assets..................... 0.85 0.82 0.74 0.77 0.89 0.82 0.85 0.97 0.73 0.74 0.84 

Equity capital ratio............................................. 8.94 11.25 9.86 9.79 8.50 8.10 9.58 8.61 9.23 9.83 10.31 

Core capital (leverage) ratio.............................. 7.81 10.85 9.26 8.66 7.22 7.41 7.81 7.56 8.53 8.67 8.84 

Tier 1 risk-based capital ratio.............................. 9.68 16.01 12.93 11.62 8.59 9.55 9.26 8.82 11.80 12.65 10.84 

Total risk-based capital ratio.............................. 12.45 17.10 14.09 13.59 11.82 12.38 12.12 11.91 13.33 14.19 13.58 

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

Structural Changes (YTD) 

88.31 72.32 78.87 90.94 91.00 77.86 94.50 100.88 93.58 71.04 89.61 

New Charters................................................ 92 89 3 0 0 10 24 17 11 6 24 

Banks absorbed by mergers........................... 250 110 115 19 6 28 42 78 42 31 29 

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

PRIOR FIRST THREE QUARTERS

 (The way it was...) 

3 3 0 0 0 1 0 1 0 1 0 

Number of institutions................................2000 8,375 4,922 3,069 302 82 668 1,429 1,809 2,151 1,405 913

 ...............................................1998 8,909 5,579 2,947 319 64 697 1,467 1,940 2,295 1,549 961

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

Total assets (in billions).............................2000 $6,067.2 $233.2 $770.8 $871.0 $4,192.2 $2,092.4 $1,611.1 $1,042.3 $406.5 $294.1 $620.8

 ................................................1998 5,267.8 257.4 730.9 955.3 3,324.2 1,916.5 1,148.6 835.2 363.0 301.5 703.0

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

Return on assets (%)................................2000 1.20 1.14 1.30 1.36 1.16 1.30 1.05 1.06 1.44 1.07 1.44

 ................................................1998 1.22 1.24 1.35 1.58 1.08 1.08 1.29 1.32 1.49 1.20 1.22

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

Net charge-offs to loans & leases (%) 

1.19 1.23 1.29 1.31 1.10 1.08 1.21 1.19 1.44 1.23 1.28 

 ................................................2000 0.59 0.24 0.34 0.62 0.64 0.74 0.43 0.35 0.79 0.35 0.95

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

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

Noncurrent assets plus 

0.56 0.21 0.37 0.99 0.44 0.62 0.43 0.42 0.65 0.31 0.79 

OREO to assets (%)..............................2000 0.70 0.70 0.61 0.61 0.73 0.73 0.70 0.67 0.60 0.66 0.70

 ................................................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 0.68 0.65 0.95 

Equity capital ratio (%)..............................2000 8.59 11.07 9.44 8.98 8.22 8.20 8.46 8.14 9.51 9.07 10.19

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

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 2001 5 FDIC-Insured Commercial Banks 
TABLE IV-A. Third Quarter 2001, 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 

8,149 4,598 3,150 321 80 650 1,411 1,738 2,106 1,351 893 

Total assets (in billions)....................................... $6,555.7 $225.8 $803.2 $898.2 $4,628.5 $2,343.2 $1,647.8 $1,251.0 $335.6 $269.9 $708.2 

Total deposits (in billions).................................... 4,294.7 190.4 655.3 611.0 2,838.0 1,445.5 1,086.7 817.4 239.4 219.7 485.9 

Net income (in millions)....................................... 17,353 530 2,436 2,916 11,470 6,216 3,162 3,116 1,258 810 2,791 

% of unprofitable institutions................................. 8.1 11.3 3.7 5.6 7.5 11.1 11.8 6.3 4.9 7.6 11.5 

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

Performance Ratios (annualized, %) 

55.1 49.8 61.4 67.9 63.8 60.3 53.4 58.8 55.1 52.0 51.6 

Yield on earning assets....................................... 7.25 7.84 7.86 7.75 7.00 6.92 7.14 7.23 7.92 7.56 8.12 

Cost of funding earning assets.............................. 3.32 3.58 3.46 3.33 3.28 3.52 3.16 3.40 3.40 3.10 2.99 

Net interest margin............................................. 3.93 4.26 4.40 4.42 3.72 3.40 3.97 3.83 4.52 4.46 5.13 

Noninterest income to earning assets..................... 2.81 1.11 1.73 2.60 3.15 3.61 2.33 2.05 2.90 1.58 3.23 

Noninterest expense to earning assets.................. 4.07 3.70 3.84 4.02 4.14 4.33 4.10 3.31 4.37 3.87 4.50 

Credit loss provision to assets.............................. 0.72 0.31 0.38 0.74 0.79 0.61 0.74 0.89 0.62 0.34 0.90 

Net operating income to assets.............................. 1.03 0.93 1.20 1.27 0.96 1.04 0.75 0.96 1.49 1.17 1.54 

Pretax return on assets....................................... 1.63 1.25 1.76 2.02 1.55 1.68 1.19 1.45 2.20 1.66 2.54 

Return on assets................................................ 1.08 0.95 1.23 1.32 1.01 1.09 0.78 1.00 1.53 1.21 1.59 

Return on equity................................................ 12.16 8.48 12.54 13.63 11.99 13.41 8.31 11.83 16.52 12.44 15.62 

Net charge-offs to loans and leases........................ 0.96 0.34 0.40 0.96 1.10 1.04 0.97 0.86 0.79 0.43 1.18 

Credit loss provision to net charge-offs.................. 125.19 147.89 144.04 121.73 124.11 117.98 117.60 152.94 115.18 134.88 120.46 

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

Structural Changes (QTR) 

58.48 68.46 61.71 55.34 58.17 59.83 62.58 54.67 57.86 62.42 51.91 

New charters................................................... 30 30 0 0 0 1 11 3 2 3 10 

Banks absorbed by mergers.............................. 58 29 23 4 2 8 11 14 11 5 9 

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

PRIOR THIRD QUARTERS

 (The way it was...) 

2 1 0 1 0 0 0 1 0 1 0 

Return on assets (%)................................2000 1.28 1.07 1.28 1.49 1.24 1.36 1.31 1.02 1.42 1.04 1.40

 .................................................1998 1.15 1.27 1.33 1.62 0.97 0.90 1.47 1.38 1.49 1.26 0.82

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

Net charge-offs to loans & leases (%) 

1.19 1.26 1.27 1.31 1.11 1.12 1.17 1.21 1.46 1.23 1.24 

 .................................................2000 0.61 0.24 0.37 0.67 0.66 0.74 0.46 0.38 0.72 0.37 1.05

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

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 6 Third Quarter 2001 
TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

September 30, 2001 

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........................... 1.23 1.40 1.11 0.99 1.33 1.41 1.08 1.48 0.88 1.22 1.02 

Construction and development........................... 1.27 1.39 1.34 1.21 1.25 1.12 0.92 1.60 1.38 1.23 1.59 

Commercial real estate.................................... 0.91 1.19 0.88 0.85 0.91 1.07 0.75 1.13 0.90 1.11 0.64 

Multifamily residential real estate........................ 0.73 0.77 0.51 0.65 0.83 0.95 0.46 0.78 0.58 1.03 0.77 

Home equity loans.......................................... 0.88 0.83 0.78 0.88 0.90 0.80 0.83 1.13 0.61 0.56 0.64 

Other 1-4 Family residential.............................. 1.47 1.77 1.39 1.08 1.57 1.45 1.42 1.88 0.86 1.38 1.26 

Commercial and industrial loans........................... 1.10 1.89 1.54 1.54 0.96 0.80 0.69 1.67 1.87 1.21 1.47 

Loans to individuals............................................. 2.37 2.59 2.40 2.43 2.35 2.62 2.15 2.34 2.38 1.91 2.18 

Credit card loans............................................. 2.76 2.33 5.45 3.01 2.60 3.06 2.53 2.37 2.93 1.59 2.35 

Other loans to individuals................................. 2.15 2.60 1.99 2.08 2.17 2.26 2.04 2.34 2.00 1.92 1.88 

All other loans and leases (including farm)............... 1.13 0.79 0.72 0.96 1.19 0.63 1.91 1.38 0.80 1.02 1.41 

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

Percent of Loans Noncurrent* 

1.19 0.65 0.44 1.32 1.21 1.52 0.54 1.55 3.56 0.92 2.18 

All real estate loans............................................. 0.93 0.98 0.82 0.87 0.99 1.05 0.78 1.20 0.66 0.87 0.80 

Construction and development........................... 1.07 0.94 0.95 1.18 1.08 1.06 0.97 1.16 0.97 0.88 1.25 

Commercial real estate.................................... 0.95 1.13 0.89 0.89 1.00 0.86 0.88 1.22 0.94 0.92 0.82 

Multifamily residential real estate........................ 0.39 0.53 0.52 0.39 0.35 0.25 0.46 0.51 0.32 0.47 0.32 

Home equity loans.......................................... 0.41 0.40 0.37 0.45 0.41 0.32 0.32 0.64 0.30 0.30 0.29 

Other 1-4 Family residential.............................. 0.92 0.87 0.73 0.83 1.00 1.02 0.75 1.38 0.43 0.79 0.64 

Commercial and industrial loans........................... 2.17 1.72 1.43 1.76 2.34 2.45 2.17 2.05 1.31 1.79 2.00 

Loans to individuals............................................. 1.42 0.98 1.00 1.31 1.52 2.10 0.83 0.81 1.32 0.64 1.43 

Credit card loans............................................. 2.18 1.72 3.80 2.42 2.07 2.57 1.51 1.62 2.02 1.01 1.98 

Other loans to individuals................................. 0.99 0.96 0.63 0.65 1.16 1.71 0.64 0.69 0.84 0.63 0.45 

All other loans and leases (including farm)............... 0.99 1.07 1.04 0.67 1.01 0.60 1.77 0.90 1.16 1.22 1.13 

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

Percent of Loans Charged-off (net, YTD) 

0.97 0.35 0.16 0.36 1.05 0.36 1.62 0.70 0.92 0.24 0.24 

All real estate loans............................................. 0.18 0.05 0.06 0.13 0.24 0.10 0.29 0.22 0.05 0.05 0.08 

Construction and development........................... 0.10 0.06 0.06 0.19 0.08 0.10 0.09 0.12 0.09 0.06 0.07 

Commercial real estate.................................... 0.10 0.06 0.05 0.08 0.14 0.07 0.09 0.20 0.05 0.03 0.05 

Multifamily residential real estate........................ 0.02 0.11 0.02 0.02 0.02 0.03 0.04 0.05 -0.02 0.02 -0.04 

Home equity loans.......................................... 0.23 0.02 0.08 0.16 0.26 0.06 0.31 0.29 0.17 0.23 0.13 

Other 1-4 Family residential.............................. 0.24 0.05 0.06 0.15 0.33 0.10 0.46 0.24 0.05 0.06 0.09 

Commercial and industrial loans........................... 1.12 0.55 0.63 1.07 1.20 0.87 1.21 1.34 0.61 0.84 1.52 

Loans to individuals............................................. 2.53 0.81 1.49 3.15 2.60 3.10 1.65 1.62 2.64 0.92 3.78 

Credit card loans............................................. 4.79 2.63 6.36 6.20 4.41 5.05 3.40 4.23 5.24 2.45 5.08 

Other loans to individuals................................. 1.17 0.76 0.79 1.16 1.28 1.31 1.10 1.22 0.59 0.87 1.37 

All other loans and leases (including farm)............... 0.39 0.33 0.40 0.52 0.38 0.21 0.26 0.68 0.43 0.34 0.90 

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

Loans Outstanding (in billions) 

0.16 0.77 0.38 0.24 0.14 0.28 0.10 0.19 0.15 0.21 0.09 

All real estate loans............................................. $1,749.2 $81.0 $343.5 $313.6 $1,011.1 $363.2 $551.9 $401.8 $115.5 $88.4 $228.3 

Construction and development........................... 190.5 7.8 42.1 41.4 99.2 19.4 68.4 46.0 10.4 14.1 32.2 

Commercial real estate.................................... 493.7 23.2 130.6 108.1 231.7 82.4 152.0 115.9 30.0 32.6 80.8 

Multifamily residential real estate........................ 63.5 1.8 11.4 13.4 36.9 15.1 17.2 15.9 3.1 2.6 9.7 

Home equity loans.......................................... 145.7 2.2 14.8 19.2 109.5 29.1 47.9 44.7 5.4 1.5 17.1 

Other 1-4 Family residential.............................. 785.7 35.8 130.2 127.3 492.5 184.8 256.5 170.3 55.9 33.9 84.4 

Commercial and industrial loans........................... 1,010.4 24.1 93.4 117.5 775.4 342.7 255.5 232.3 41.6 37.2 101.1 

Loans to individuals............................................. 607.6 17.9 59.9 99.4 430.4 231.9 132.5 96.2 39.7 22.8 84.5 

Credit card loans............................................. 218.4 0.5 7.0 37.3 173.6 105.9 29.5 12.1 16.1 0.7 54.2 

Other loans to individuals................................. 389.1 17.4 52.9 62.1 256.8 126.0 103.0 84.0 23.6 22.2 30.3 

All other loans and leases (including farm)............... 496.3 16.8 28.1 36.6 414.8 210.6 104.2 108.8 31.0 10.1 31.7 

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

Memo: Other Real Estate Owned (in millions) 

45.6 0.3 1.4 3.5 40.4 11.5 20.5 6.3 0.7 0.6 5.9 

All other real estate owned.................................... $3,457.1 $292.5 $852.5 $475.4 $1,836.7 $666.4 $1,262.6 $593.5 $254.3 $277.3 $403.0 

Construction and development........................... 289.0 32.5 135.5 60.6 60.4 34.5 107.3 38.0 38.7 34.2 36.3 

Commercial real estate.................................... 1,593.4 127.7 367.9 209.2 888.7 316.2 651.0 182.7 95.7 134.1 213.7 

Multifamily residential real estate........................ 64.0 5.6 35.8 10.5 12.0 8.8 9.3 16.4 13.7 3.7 12.2 

1-4 Family residential....................................... 1,276.6 100.1 274.1 186.6 715.7 166.5 482.0 327.3 86.2 84.8 129.8 

Farmland...................................................... 91.6 26.6 38.3 7.2 19.5 1.2 13.1 29.1 20.0 20.5 7.6 

Other real estate owned in foreign offices............ 142.6 0.0 0.9 1.3 140.4 139.3 0.0 0.0 0.0 0.0 3.3 

*Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status. N/A - Not Available 

FDIC Quarterly Banking Profile 

Third Quarter 2001 7 FDIC-Insured Commercial Banks 
SAVINGS INSTITUTIONS PERFORMANCE—THIRD QUARTER, 2001 

n Earnings Of $3.5 Billion Set Second Consecutive Quarterly Record 

n Higher Margins And Gains on Sales Of Securities Propel Earnings 

n Noncurrent Loans, Loan Loss Provisions And Reserves Increase In The 

Quarter 

n One Savings Institution Failed 

Highest Earnings on Record Reported 

in Third Quarter 

FDIC-insured savings institutions reported their second 

consecutive quarterly record with earnings of $3.5 billion for the third quarter. Third-quarter earnings beat the 

second quarter by $119 million as lower interest rates 

resulted in higher net interest income and large gains on 

sales of securities. Net interest income increased $430 

million (5 percent) because of higher net interest margins. Gains on sales of securities were $258 million (25 

percent) higher than in the second quarter. Higher provisions for loan losses and lower noninterest income 

limited the increase in earnings. Provisions for loan 

losses rose $167 million (23 percent) to $883 million, 

the largest amount since 1993. Noninterest income 

declined $372 million (11 percent) from second-quarter 

levels as servicing fees amounted to a loss for the quarter. With the high volume of mortgage refinancings this 

year, mortgage-servicing rights declined in value as the 

expected future stream of servicing fees was reduced. 

Most savings institutions report servicing fees that 

reflect any change in the value of mortgage servicing 

rights, and these fees amounted to a loss of $461 million for the quarter. This quarter’s earnings produced an 

average return on assets (ROA) of 1.09 percent, the 

second best quarterly ROA since the industry record of 

1.14 percent in the third quarter of 1998. One-fourth of 

the industry reported an ROA of 1.00 percent or better 

and 9 percent reported losses. 

RECORD EARNINGS REPORTED IN 

THIRD QUARTER $ Billions 

4 

3 

2 

1 

0 

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

1997 1998 1999 2000 2001 

Larger Savings Institutions Showed 

Improved Net Interest Margins 

As short-term interest rates continued to decline, net 

interest margins improved for the third quarter in a row. 

The industry’s net interest margin was 3.27 percent, up 

12 basis points from 3.15 percent in the second quarter. 

The cost of funding earning assets declined by 41 basis 

points, while the yield on earning assets was down by 

only 28 basis points. For small savings institutions— 

those with less than $100 million in assets—margins 

continued to decline, falling 5 basis points to 3.17 percent. For these institutions the yield on earning assets 

declined by 26 basis points, faster than the cost of funding earning assets, which fell by 21 basis points. For 

the remainder of the industry—those institutions with 

$100 million or more in assets—margins rose 14 basis 

points to 3.28 percent. This was the first quarterly report 

ever that small savings institutions reported a lower net 

interest margin than the rest of the industry. 

Small Specialty Thrifts Lift Average 

Profitability of Small Thrift Group 

The decline in margins continues to hurt most small 

thrifts, but a few specialty thrifts lifted the profitability of 

the group. For the entire group, noninterest income 

sources contribute 41.7 percent of net operating revenue (net interest income plus noninterest income). 

There were 14 specialty thrifts that generate more than 

90 percent of their net operating revenue from noninterSMALL INSTITUTION ADVANTAGE IN NET 

INTEREST MARGIN LOST FOR FIRST TIME 

Net Interest Margin (%) 

1234 12341234 1234123 

1997 1998 1999 2000 2001 

FDIC Quarterly Banking Profile 

2.5 

3.0 

3.5 

4.0 

Assets < $100 Million 

Assets > $100 Million 

3.17 

3.28 

2.4 2.4 

2.0 

2.3 

2.6 

2.8 

3.0 

2.0 

2.7 

2.9 2.8 

2.7 

2.9 

2.7 

2.5 2.6 

2.9 

3.4 3.5 Securities and Other Gains/Losses, Net 

Net Operating Income 

FDIC-Insured Savings Institutions 8 Third Quarter 2001 
est income. Because these institutions manage more 

assets than are on their balance sheets, their profitability appears quite high. These institutions collectively 

reported an ROA of 29.90 percent, up from 24.04 percent in the second quarter. 

A FEW SPECIALTY THRIFTS LIFT 

NONINTEREST INCOME 

Quarterly Noninterest Income, % of Net Operating Revenue 

operating efficiency. The efficiency ratio—noninterest 

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

improved slightly from 84.84 percent to 83.65 percent. 

The small specialty thrifts reported a more dramatic 

improvement in efficiency, down from 70.65 percent to 

61.86 percent. The entire group of small thrifts showed 

improved efficiency (down from 80.20 percent to 77.47 

percent), while larger thrifts held steady at around 57 

41.7 

Assets > $100 Million 

22.5 

Assets < $100 Million 

12 3 4 1 2 3 1 2 4 4 3 1 2 4 3 1 2 3 4 1 2 4 3 1 2 4 3 1 2 4 3 1 2 3 4 1 2 3 

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 

Better Efficiency Leads To Slightly 

Improved Earnings at Remaining Small 

Thrifts 

50 

40 

30 

20 

10 

0 

percent. 

Loans Past Due Increase 

During the third quarter there was an increase in borrowers that have missed a monthly loan payment. 

Loans that were 30 to 89 days past due increased during the third quarter by $1.4 billion to $9.5 billion or 1.10 

percent of total loans, the highest rate since the end of 

1997. Noncurrent loans, those loans that were 90 days 

past due or in nonaccrual status, increased by $580 million to $7.1 billion or 0.82 percent of total loans, the 

highest level since early 1999. Reserves for loan losses increased $230 million to $7.9 billion or 0.90 percent 

of total loans. The coverage ratio of loan-loss reserves 

to noncurrent loans fell from 116 percent to 110 percent, 

its lowest level since the middle of 1998. 

INCREASES IN NONCURRENT LOANS 

OUTPACE RESERVES 

$ Billions Coverage Ratio (%) 

Improvements in efficiency led to higher profitability for 30 

the 579 remaining small thrifts. The remaining small 

thrifts—those with assets less than $100 million and 24 

whose noninterest income was less than 90 percent of 

net operating revenue—reported a slight increase in 

ROA, up 2 basis points to 0.40 percent. The decline in 18 

margins continued for these institutions (down 5 basis 

points), but they were able to reduce noninterest 12 

expenses to compensate for lower margins. 

Noninterest expenses were 3.32 percent of earning 6 assets, down 10 basis points from 3.43 percent in the 

second quarter. This led to a slight improvement in 

EFFICIENCY IMPROVES FOR SMALL THRIFTS 

Efficiency Ratio (%) 

90 

80 

70 

60 

50 

40 

Assets < $100 Million 

Assets > $100 Million 

77.47 

57.69 

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

1998 1999 2000 2001 

Home Mortgage Problems Lead to Higher 

Noncurrent Rates 

Home mortgages account for 69 percent of total loans, 

and rising problems in this loan category drove the 6 

basis point increase in the industry’s noncurrent loan 

rate to 0.82 percent. While home equity loans showed 

improvement as loan volume increased, other loans 

secured by 1-4 family residential property showed signs 

of weakness. These home mortgages had a 5 basis 

point increase in their noncurrent rate to 0.76 percent 

during the quarter. This was 12 basis points higher than 

the year-ago level of 0.64 percent. The noncurrent rate 

on construction, development, and land loans jumped 

Coverage Ratio (%) 

Noncurrent 

Loans ($) 

Loan Loss Reserves ($) 

0 0 

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

1997 1998 1999 2000 2001 

150 

120 

90 

60 

30 

Third Quarter 2001 9 FDIC-Insured Savings Institutions 
0 

NONCURRENT LOANS INCREASE FOR ALL 

REAL ESTATE CATEGORIES 

Percent of Loans 

1.5 

1.0 

0.5 

1999 2000 2001 

27 basis point this quarter to 1.55 percent, up 75 basis 

points from the year-ago level of 0.80 percent. The noncurrent rate on commercial real estate loans increased 

14 basis points to 1.19 percent, which was 35 basis 

points higher than the year-ago level of 0.84 percent. 

Real Estate Loan Net Charge-offs 

Increase 

Net charge-offs were $45 million higher than last quarter and $212 million higher than a year ago. The net 

charge-off rate, net charge-offs as a percent of loans, 

was 2 basis point higher than in the second quarter and 

9 basis points higher than a year ago, when the rate 

was 0.19 percent. Net charge-offs on construction, 

development, and land loans were 0.16 percent this 

quarter, double the 0.08 percent reported a year ago. 

Net charge-offs on commercial real estate were nearly 5 

times higher this quarter, at 0.19 percent, from the yearago level of 0.04 percent. 

The Industry Showed Growth in Assets, 

Deposits and Capital 

Assets of insured savings institutions, at $1.3 trillion, 

grew by $12.3 billion during the quarter, and were $86 

billion higher (7 percent) than a year ago. During the 

quarter thrifts added $2.6 billion in home equity loans 

and $1.1 billion in other loans secured by 1-4 family 

properties. Loans to individuals increased $3.8 billion 

this quarter. 

Deposit growth was $12.9 billion this quarter and $61 

Total 

Real Estate 

Construction and Land 

1-4 Family 

Multifamily 

Commercial Loans 

1 2 3 4 1 2 3 4 1 2 3 

billion (8 percent) since the third quarter of last year. 

This was the eighth consecutive quarter with growth in 

deposits for the industry. In the third quarter, other borrowed funds declined by $6.7 billion while Federal 

Home Loan Bank Advances increased by $1.5 billion. 

Equity capital improved by $3.3 billion with a boost from 

higher values for available-for-sale (AFS) securities, up 

$1.9 billion. Earnings retained by the industry—net 

income less cash dividends—totaled $2.2 billion, which 

is the highest quarterly amount since 1986 for the industry. Equity capital reached 8.68 percent of assets and 

the core capital (leverage) ratio, which excludes the 

gains on AFS securities, rose to 7.86 percent of average 

assets. 

CAPITAL LEVELS LIFTED BY HIGHER 

RETAINED EARNINGS 

Ratios (%) 

18 

15 

12 

9 

6 

Equity to Assets 

Total Risk-Based Capital 

Core Capital (Leverage) 

Tier 1 Risk-Based Capital 

1234 12341234 12341234 1234 123 

1995 1996 1997 1998 1999 2000 2001 

One Institution Failed and Was Placed in 

Conservatorship in the Quarter 

There were 1,552 savings institutions included in the 

tables of this report. This excludes the conservatorship 

created from Superior Bank FSB, which failed on July 

27th. There were 3 savings institutions that converted 

their charters to a commercial bank charter this quarter 

and 9 that were absorbed by commercial banks. There 

were another 9 mergers within the industry that reduced 

the count of charters. Additions to the industry included 

3 de novo charters and 2 credit unions that converted to 

savings institutions. Within the industry, 4 mutually 

owned institutions converted to stock ownership. The 

number of “problem” thrifts declined from 22 to 20 and 

assets fell from $7.2 billion to $3.9 billion during the 

quarter. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Third Quarter 2001 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

2001** 2000** 2000 1999 1998 1997 1996 

Return on assets (%)............................................. 1.05 0.94 0.92 1.00 1.01 0.93 0.70 

Return on equity (%)............................................. 12.32 11.43 11.14 11.73 11.35 10.84 8.41 

Core capital (leverage) ratio (%).............................. 7.86 7.81 7.80 7.86 7.85 7.95 7.76 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.64 0.54 0.56 0.58 0.72 0.95 1.09 

Net charge-offs to loans (%).................................... 0.25 0.18 0.20 0.17 0.22 0.25 0.32 

Asset growth rate (%)............................................. 7.16 5.11 5.99 5.52 6.06 -0.28 0.32 

Net interest margin................................................ 3.16 2.98 2.96 3.10 3.10 3.23 3.22 

Net operating income growth (%).............................. -2.27 6.09 3.05 16.62 7.71 19.98 -13.92 

Number of institutions reporting.............................. 1,552 1,613 1,589 1,642 1,690 1,780 1,926 

Percentage of unprofitable institutions (%).................. 9.41 8.99 8.56 8.28 5.27 4.10 12.05 

Number of problem institutions................................. 20 15 18 13 15 12 35 

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

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

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

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

(dollar figures in millions) 

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

Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter %Change 

2001 2001 2000 00:3-01:3 

1,552 1,569 1,613 -3.8 

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

CONDITION DATA 

262,266 263,814 244,267 7.4 

 Total assets..................................................................... $1,286,995 $1,274,668 $1,200,991 7.2

 Loans secured by real estate............................................. 757,939 751,655 721,530 5.0 

1-4 Family Residential................................................... 597,327 593,605 573,724 4.1 

Multifamily residential property....................................... 58,972 58,256 56,027 5.3 

Commercial real estate................................................... 63,942 63,047 58,121 10.0 

Construction, development, and land................................. 37,698 36,746 33,659 12.0

 Commercial & industrial loans.......................................... 37,612 37,671 32,892 14.3

 Loans to individuals......................................................... 68,834 65,031 63,124 9.0

 Other loans & leases...................................................... 6,560 6,591 5,601 17.1

 Less: Unearned income & contra accounts........................ 166 177 195 -14.6

 Total loans & leases......................................................... 870,779 860,771 822,953 5.8

 Less: Reserve for losses................................................... 7,856 7,627 7,230 8.7

 Net loans & leases............................................................ 862,923 853,144 815,723 5.8

 Securities........................................................................ 275,679 279,259 275,776 0.0

 Other real estate owned................................................... 1,049 1,031 1,065 -1.6

 Goodwill and other intangibles.......................................... 22,480 22,935 16,673 34.8

 All other assets............................................................... 124,864 118,299 91,753 36.1 

Total liabilities and capital................................................... 1,286,995 1,274,668 1,200,991 7.2

 Deposits........................................................................ 788,601 775,699 727,587 8.4

 Other borrowed funds...................................................... 358,310 364,972 353,536 1.4

 Subordinated debt............................................................ 3,946 3,896 2,848 38.5

 All other liabilities............................................................ 24,368 21,649 16,862 44.5

 Equity capital.................................................................. 111,770 108,452 100,158 11.6 

Loans and leases 30-89 days past due................................. 9,549 8,249 7,197 32.7 

Noncurrent loans and leases................................................ 7,134 6,555 5,474 30.3 

Restructured loans and leases............................................. 1,685 1,502 1,520 10.9 

Direct and indirect investments in real estate........................... 662 614 639 3.6 

Mortgage-backed securities................................................ 206,516 207,935 208,197 -0.8 

Earning assets.................................................................. 1,180,840 1,170,069 1,114,055 6.0 

FHLB Advances (Source: TFR, FHFB, Call Reports)............... 255,583 254,116 246,818 3.6 

Unused loan commitments................................................... 298,823 288,553 246,997 21.0 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

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

Qtrs 2001 Qtrs 2000 %Change 2001 2000 00:3-01:3 

$65,327 $62,168 5.1 $21,425 $21,887 -2.1 

38,242 38,245 0.0 11,855 13,861 -14.5 

27,085 23,923 13.2 9,569 8,026 19.2 

2,220 1,467 51.3 883 542 63.0 

8,970 8,595 4.4 2,871 3,056 -6.1 

21,737 18,983 14.5 7,495 6,645 12.8 

3,138 454 591.0 1,303 118 N/M 

5,448 4,335 25.7 1,951 1,449 34.7 

16 -17 N/M 62 -25 N/M 

9,805 8,171 20.0 3,476 2,540 36.9 

1,599 1,066 50.0 588 376 56.3 

4,094 4,468 -8.4 1,226 1,325 -7.4 

7,707 7,886 -2.3 2,629 2,485 5.8 

* Data do not include Superior Federal Bank, FSB, which is in conservatorship. N/M - Not Meaningful 

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

FDIC Quarterly Banking Profile 

Third Quarter 2001 11 FDIC-Insured Commercial Banks 
TABLE III-B. First Three Quarters 2001, 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 

1,552 593 814 101 44 613 205 394 122 109 109 

Total assets (in billions).................................... $1,287.0 $30.6 $251.1 $188.7 $816.6 $433.3 $92.4 $189.2 $42.7 $70.1 $459.3 

Total deposits (in billions).................................... 788.6 24.3 190.4 131.4 442.5 288.1 64.4 129.5 26.7 41.6 238.3 

Net income (in millions).................................... 9,805 161 1,401 1,220 7,022 3,053 388 1,289 255 663 4,155 

% of unprofitable institutions.............................. 9.4 18.2 4.1 5.0 0.0 8.2 10.7 11.2 12.3 8.3 5.5 

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

Performance ratios (annualized, %) 

49.2 38.6 52.7 71.3 77.3 43.7 49.3 50.3 55.7 53.2 65.1 

Yield on earning assets.................................... 7.62 7.46 7.51 7.59 7.67 7.38 7.77 7.98 7.53 7.83 7.64 

Cost of funding earning assets........................... 4.46 4.26 4.26 4.36 4.56 4.09 4.83 4.78 4.72 4.46 4.58 

Net interest margin.......................................... 3.16 3.20 3.25 3.23 3.11 3.29 2.94 3.20 2.82 3.38 3.07 

Noninterest income to earning assets.................. 1.05 2.18 0.88 0.91 1.09 0.97 1.64 1.33 0.90 1.26 0.86 

Noninterest expense to earning assets.................. 2.54 4.25 2.91 2.64 2.33 2.59 3.39 3.18 2.42 2.80 2.02 

Loan and lease loss provision to assets............... 0.24 0.13 0.12 0.17 0.29 0.15 0.53 0.52 0.21 0.32 0.14 

Net operating income to assets........................... 0.83 0.58 0.68 0.81 0.89 0.88 0.36 0.46 0.65 1.16 0.99 

Pretax return on assets................................. 1.64 1.14 1.15 1.36 1.87 1.55 0.90 1.46 1.23 1.53 1.99 

Return on assets............................................. 1.05 0.73 0.77 0.90 1.19 0.99 0.58 0.94 0.82 1.28 1.24 

Return on equity............................................. 12.32 5.67 7.25 9.79 15.63 9.98 6.83 10.92 8.88 15.28 17.11 

Net charge-offs to loans and leases..................... 0.25 0.11 0.11 0.20 0.32 0.18 0.42 0.53 0.19 0.35 0.16 

Loan and lease loss provision to net charge-offs...... 138.88 173.73 161.21 125.56 137.96 129.63 181.34 132.24 153.54 139.25 132.87 

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

Condition Ratios (%) 

58.36 78.17 69.60 61.92 53.06 58.18 73.14 68.41 63.44 59.63 49.71 

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

Loss allowance to: 

91.75 93.86 93.54 92.86 90.87 92.34 93.22 91.00 92.72 92.99 90.93 

Loans and leases.......................................... 0.90 0.73 0.84 1.05 0.89 0.95 0.94 0.98 0.72 0.98 0.83 

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

Noncurrent assets plus 

110.12 79.10 116.00 115.02 108.56 129.29 122.49 102.02 100.87 74.92 105.70 

other real estate owned to assets..................... 0.64 0.72 0.58 0.77 0.62 0.53 0.63 0.81 0.74 0.97 0.60 

Noncurrent RE loans to RE loans........................ 0.78 0.88 0.68 0.91 0.78 0.68 0.64 0.91 0.69 1.56 0.76 

Equity capital ratio............................................. 8.68 12.81 10.63 9.20 7.81 9.83 8.75 8.68 9.01 8.60 7.58 

Core capital (leverage) ratio.............................. 7.86 12.42 10.06 8.44 6.87 8.75 8.37 8.00 8.47 8.44 6.72 

Tier 1 risk-based capital ratio.............................. 12.61 22.32 16.74 13.41 10.89 13.93 12.98 12.53 14.63 12.94 11.08 

Total risk-based capital ratio.............................. 13.96 23.36 17.78 14.52 12.40 15.24 14.42 13.85 15.51 13.88 12.57 

Gross real estate assets to gross assets............... 74.61 68.83 70.54 74.75 76.04 72.03 67.88 72.38 76.40 61.15 81.20 

Gross 1-4 family mortgages to gross assets............ 46.13 48.32 43.92 37.97 48.61 41.62 41.49 50.38 47.21 27.52 52.29 

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

Structural Changes (YTD) 

109.42 83.68 88.84 96.02 123.67 94.91 97.68 107.00 112.04 109.97 131.08 

New Charters................................................ 12 10 2 0 0 5 1 3 0 1 2 

Thrifts absorbed by mergers........................... 47 13 28 5 1 20 6 12 4 1 4 

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

PRIOR FIRST THREE QUARTERS

 (The way it was...) 

1 0 0 1 0 0 0 1 0 0 0 

Number of institutions...............................2000 1,613 635 833 107 38 635 214 412 126 112 114

 ...............................................1998 1,714 726 844 108 36 665 236 449 127 119 118

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

Total assets (in billions).............................2000 $1,201.0 $31.3 $248.4 $213.9 $707.4 $397.0 $81.7 $184.0 $44.0 $81.4 $413.0

 ................................................1998 1,056.6 37.8 248.0 214.6 556.2 354.4 65.2 171.9 34.8 66.1 364.2

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

Return on assets (%)................................2000 0.94 0.48 0.79 0.96 1.01 0.92 0.62 0.97 0.66 1.04 1.03

 ................................................1998 1.09 0.84 0.94 1.08 1.19 1.02 1.04 1.03 0.92 1.21 1.21

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

Net charge-offs to loans & leases (%) 

0.66 0.31 0.57 0.73 0.70 0.79 0.45 0.57 0.53 1.76 0.34 

 ................................................2000 0.18 0.05 0.08 0.34 0.18 0.12 0.27 0.33 0.16 0.23 0.14

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

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

Noncurrent assets plus 

0.31 0.10 0.17 0.31 0.42 0.30 0.35 0.14 0.14 0.32 0.44 

OREO to assets (%)**.....................2000 0.54 0.61 0.51 0.86 0.46 0.56 0.58 0.68 0.60 0.73 0.42

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

Equity capital ratio (%)..............................2000 8.34 13.16 10.52 8.71 7.25 9.84 8.74 8.52 9.07 8.13 6.70

 ................................................1998 8.99 12.34 10.75 9.25 7.89 10.07 10.41 9.48 9.98 8.63 7.44

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

* Data do not include Superior Federal Bank, FSB, which is in conservatorship. 

** 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 2001 
TABLE IV-B. THIRD Quarter 2001, 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- South 

west west West 

1,552 593 814 101 44 613 205 394 122 109 109 

Total assets (in billions).................................... $1,287.0 $30.6 $251.1 $188.7 $816.6 $433.3 $92.4 $189.2 $42.7 $70.1 $459.3 

Total deposits (in billions).................................... 788.6 24.3 190.4 131.4 442.5 288.1 64.4 129.5 26.7 41.6 238.3 

Net income (in millions).................................... 3,476 55 534 415 2,472 1,041 150 517 90 242 1,436 

% of unprofitable institutions.............................. 9.1 16.7 4.5 4.0 2.3 8.5 7.8 11.7 10.7 7.3 5.5 

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

Performance Ratios (annualized, %) 

54.7 45.9 58.1 70.3 75.0 47.1 59.5 59.1 56.6 56.9 67.9 

Yield on earning assets.................................... 7.33 7.23 7.33 7.34 7.33 7.18 7.56 7.78 7.38 7.44 7.22 

Cost of funding earning assets........................... 4.06 4.06 4.03 4.05 4.07 3.85 4.51 4.52 4.42 3.95 3.95 

Net interest margin.......................................... 3.27 3.17 3.30 3.28 3.27 3.32 3.04 3.26 2.96 3.49 3.27 

Noninterest income to earning assets.................. 0.98 2.27 0.95 0.92 0.96 0.95 1.60 1.56 0.89 1.30 0.61 

Noninterest expense to earning assets.................. 2.56 4.29 2.89 2.70 2.36 2.58 3.48 3.18 2.46 2.91 2.07 

Credit loss provision to assets.............................. 0.28 0.14 0.12 0.20 0.35 0.15 0.51 0.61 0.30 0.35 0.20 

Net operating income to assets........................... 0.83 0.58 0.76 0.78 0.86 0.86 0.35 0.77 0.63 1.21 0.87 

Pretax return on assets................................. 1.70 1.14 1.29 1.36 1.93 1.57 1.04 1.69 1.29 1.59 2.02 

Return on assets............................................. 1.09 0.73 0.86 0.89 1.22 0.98 0.66 1.11 0.85 1.39 1.25 

Return on equity............................................. 12.67 5.73 8.10 9.69 15.84 9.97 7.56 12.75 9.38 16.25 16.88 

Net charge-offs to loans and leases..................... 0.27 0.11 0.11 0.22 0.34 0.19 0.48 0.58 0.22 0.37 0.16 

Credit loss provision to net charge-offs**............... 150.16 185.14 160.75 133.47 151.25 130.45 152.03 141.00 190.80 142.34 180.25 

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

Structural Changes (QTR) 

58.30 77.47 67.17 62.29 53.60 57.89 73.56 64.19 62.52 59.87 51.37 

New charters................................................ 3 2 1 0 0 3 0 0 0 0 0 

Thrifts absorbed by mergers........................... 18 5 10 3 0 8 4 5 1 0 0 

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

PRIOR THIRD QUARTERS

 (The way it was...) 

1 0 0 1 0 0 0 1 0 0 0 

Return on assets (%)................................2000 0.86 0.50 0.72 0.92 0.90 0.83 0.46 0.93 0.31 1.11 0.94

 .................................................1998 1.14 0.80 0.89 1.09 1.30 1.04 1.34 1.06 0.84 1.15 1.27

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

Net charge-offs to loans & leases (%) 

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

 .................................................2000 0.19 0.02 0.08 0.26 0.21 0.14 0.32 0.41 0.19 0.20 0.08

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

* Data do not include Superior Federal Bank, FSB, which is in conservatorship. 

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

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 2001 13 FDIC-Insured Savings Institutions 
TABLE V-B. Loan Performance, FDIC-Insured Savings Institutions* 

September 30, 2001 

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........................... 1.01 1.74 1.10 0.86 0.98 0.86 0.98 1.24 1.54 1.55 0.93 

Construction, development, and land.................. 1.23 1.49 1.55 1.10 1.08 0.97 0.95 1.67 0.72 1.72 1.04 

Commercial real estate.................................... 0.69 1.18 0.88 0.78 0.41 0.55 0.92 1.33 0.92 1.42 0.23 

Multifamily residential real estate........................ 0.22 1.36 0.38 0.31 0.13 0.14 0.77 0.60 0.36 1.53 0.12 

Home equity loans.......................................... 0.42 0.67 0.53 0.42 0.37 0.43 0.28 0.76 0.47 0.03 0.19 

Other 1-4 Family residential.............................. 1.14 1.89 1.19 0.98 1.13 1.01 1.04 1.29 1.84 1.59 1.10 

Commercial and industrial loans........................... 1.45 2.16 1.93 1.12 1.38 1.43 1.61 1.77 2.66 0.97 1.25 

Loans to individuals............................................. 1.97 2.47 1.80 1.52 2.09 1.94 2.67 1.87 1.73 0.81 2.67 

Credit card loans............................................. 2.29 1.58 2.09 2.39 2.31 2.15 4.77 2.90 3.74 0.66 1.46 

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

Percent of Loans Noncurrent** 

1.89 2.53 1.79 1.50 2.00 1.94 2.11 1.26 1.60 0.97 2.84 

All real estate loans............................................. 0.78 0.88 0.68 0.91 0.78 0.68 0.64 0.91 0.69 1.56 0.76 

Construction, development, and land.................. 1.55 1.45 1.07 1.45 1.89 0.95 1.20 1.15 1.31 1.83 2.37 

Commercial real estate.................................... 1.17 1.07 0.90 1.32 1.32 0.86 0.82 1.36 1.06 1.69 1.77 

Multifamily residential real estate........................ 0.34 1.08 0.32 0.96 0.14 0.33 0.47 0.49 0.15 7.89 0.06 

Home equity loans.......................................... 0.16 0.15 0.15 0.27 0.13 0.17 0.09 0.27 0.16 0.01 0.07 

Other 1-4 Family residential.............................. 0.76 0.83 0.66 0.76 0.79 0.70 0.58 0.93 0.61 1.10 0.76 

Commercial and industrial loans........................... 1.68 1.67 1.71 1.51 1.73 1.61 1.36 1.69 1.73 1.48 2.13 

Loans to individuals............................................. 0.79 1.06 0.63 0.54 0.87 0.63 1.18 1.17 0.55 0.47 0.46 

Credit card loans............................................. 1.86 1.32 0.75 0.59 2.00 1.60 3.76 2.43 1.34 0.68 0.76 

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

Percent of Loans Charged-off (net, YTD) 

0.45 1.06 0.62 0.54 0.35 0.52 0.49 0.43 0.50 0.27 0.44 

All real estate loans............................................. 0.06 0.04 0.02 0.10 0.06 0.04 0.04 0.09 0.08 0.05 0.05 

Construction, development, and land.................. 0.12 0.31 0.04 0.20 0.12 0.05 0.09 0.08 0.26 0.14 0.19 

Commercial real estate.................................... 0.14 0.02 0.04 0.16 0.22 0.07 0.08 0.03 0.34 0.09 0.35 

Multifamily residential real estate........................ 0.00 -0.05 -0.02 -0.01 0.00 -0.01 0.00 0.01 -0.03 0.00 0.00 

Home equity loans.......................................... 0.06 0.04 0.04 0.09 0.06 0.05 0.16 0.08 0.10 0.08 0.01 

Other 1-4 Family residential.............................. 0.05 0.02 0.02 0.09 0.05 0.04 0.02 0.10 0.03 0.02 0.04 

Commercial and industrial loans........................... 1.31 1.01 0.77 0.89 1.64 0.90 2.51 0.96 1.29 1.46 1.91 

Loans to individuals............................................. 1.91 0.61 0.86 0.81 2.42 1.20 1.78 3.44 1.04 0.94 1.95 

Credit card loans............................................. 4.76 2.20 2.66 3.78 4.97 3.79 5.82 7.67 6.23 1.43 3.04 

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

Loans Outstanding (in billions) 

0.95 0.56 0.61 0.70 1.14 0.82 0.82 0.74 0.71 0.47 1.82 

All real estate loans............................................. $757.9 $18.3 $151.7 $109.8 $478.2 $237.8 $49.5 $115.4 $26.7 $32.2 $296.2 

Construction, development, and land.................. 37.7 1.1 10.6 8.7 17.2 8.0 5.4 5.9 1.9 7.4 9.0 

Commercial real estate.................................... 63.6 1.7 21.1 16.9 23.9 30.5 4.4 8.0 3.4 4.2 13.2 

Multifamily residential real estate........................ 59.0 0.5 8.8 12.0 37.7 17.7 1.1 5.4 1.2 1.2 32.4 

Home equity loans.......................................... 28.1 0.5 6.2 4.3 17.0 9.6 2.5 6.9 0.7 1.0 7.5 

Other 1-4 Family residential.............................. 569.2 14.3 104.7 67.9 382.3 171.9 36.1 89.2 19.6 18.4 234.1 

Commercial and industrial loans........................... 37.6 0.8 7.4 7.1 22.3 17.1 3.8 5.1 1.1 3.5 7.0 

Loans to individuals............................................. 68.8 1.4 10.9 9.4 47.1 18.5 9.9 17.0 2.2 10.1 11.0 

Credit card loans............................................. 16.5 0.0 1.4 0.4 14.8 2.1 2.1 6.3 0.1 5.0 1.0 

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

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

51.9 1.3 9.4 9.0 32.2 16.3 7.8 10.7 2.1 5.2 9.9 

All other real estate owned.................................... $1,048.6 $31.0 $209.9 $287.3 $520.4 $261.3 $100.5 $194.8 $101.4 $75.3 $315.3 

Construction, development, and land.................. 154.1 3.0 27.7 21.9 101.5 8.1 44.5 11.7 50.9 11.5 27.5 

Commercial real estate.................................... 281.9 5.7 58.1 155.0 63.2 128.6 9.9 33.5 25.3 32.3 52.3 

Multifamily residential real estate........................ 29.1 0.6 10.2 15.8 2.6 5.5 2.9 7.0 1.0 10.1 2.6 

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

Troubled Real Estate Asset Rates**** 

(% of total RE assets) 

597.4 22.1 117.9 100.0 357.4 124.4 44.4 143.2 26.7 21.8 237.0 

All real estate loans............................................. 0.92 1.05 0.82 1.17 0.89 0.79 0.84 1.08 1.06 1.79 0.87 

Construction, development, and land.................. 1.95 1.71 1.33 1.70 2.47 1.05 2.00 1.34 3.90 1.98 2.66 

Commercial real estate.................................... 1.62 1.40 1.17 2.23 1.60 1.28 1.04 1.78 1.79 2.46 2.19 

Multifamily residential real estate........................ 0.39 1.21 0.44 1.09 0.15 0.36 0.74 0.61 0.23 8.68 0.07 

1-4 family residential....................................... 0.83 0.96 0.74 0.87 0.85 0.74 0.66 1.03 0.73 1.15 0.83 

* Data do not include Superior Federal Bank, FSB, which is in conservatorship. 

** 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 2001 
ALL FDIC-INSURED INSTITUTIONS 

n BIF Reserve Ratio Drops To 1.32 Percent In Third Quarter 

n SAIF Reserve Ratio Falls To 1.39 Percent 

n One SAIF-Member Institution Fails, The Largest Failure Since June 1993 

n One Small BIF-Member Institution Fails During Third Quarter 

Insured institution liabilities increased by 2.5 percent 

during the third quarter, but deposits grew by only 1.3 

percent and insured deposits by 0.9 percent. Deposits 

insured by the FDIC rose by $28 billion during the third 

quarter of 2001. This was greater than the previous 

quarter’s $16 billion increase, but far less than the $84 

billion increase seen in the first quarter of 2001, when 

sweep activities added $20 billion. Deposits insured 

by the Bank Insurance Fund (BIF) increased 0.9 

percent ($21 billion) during the third quarter, following 

a second quarter increase of 0.5 percent ($ 11 billion). 

Deposits insured by the Savings Association Insurance Fund (SAIF) rose by 0.9 percent ($7.1 billion), 

following a 0.7 percent rise in the second quarter. 

“Sweeps” of cash management funds into FDICinsured accounts added roughly $9.0 billion to insured 

deposits during the quarter, primarily because of $6.5 

billion increase at institutions affiliated with one 

company. Sweeps of cash management funds 

increased BIF-insured deposits by an estimated $8 

billion (29 percent of insured deposit growth) during 

the third quarter. Sweeps also increased SAIF-insured 

deposits by an estimated $940 million (13 percent of 

insured deposit growth). Since the end of March 2000, 

these sweep accounts have added an estimated $73.3 

billion to BIF-insured deposits and $4.4 billion to SAIFinsured deposits, accounting for almost 30 percent of 

the growth in all insured deposits. 

During the third quarter of 2001 the BIF increased for 

the seventh consecutive quarter, growing by 0.5 

percent ($153 million), to a balance of $31.83 billion 

(unaudited), the highest level since year-end 2000. 

However, the growth of the BIF did not keep pace with 

the increase in BIF-insured deposits, and the reserve 

ratio (fund balance as a percent of insured deposits) 

declined from 1.33 percent on June 30 to 1.32 percent 

on September 30, down from 1.35 percent one year 

ago. Sweeps of cash management funds limited the 

increase in the BIF reserve ratio by less than half a 

basis point (.0044 percent) during the quarter. 

The SAIF grew during the third quarter of 2001 by $23 

million (0.2 percent), to $10.82 billion (unaudited). The 

growth of the fund balance was constrained by a $199 

million provision for insurance losses. The growth of 

the SAIF was not enough to offset the quarterly 

increase in SAIF-insured deposits, as the SAIF 

reserve ratio declined from 1.40 percent on June 30 to 

1.39 percent on September 30. Twelve months ago, 

the SAIF reserve ratio stood at 1.45 percent, the 

highest level ever. During the third quarter, sweeps of 

cash management funds lowered the SAIF reserve 

ratio by an estimated one-sixth of a basis point (.0017 

percent). 

Two insured institutions failed during the third quarter 

of 2001, a SAIF member federal savings bank1 with 

assets of $2.3 billion, (the largest failure of an FDICinsured institution since June 1993) and a BIF member 

commercial bank2 with assets of $30.7 million. In the 

first nine months of 2001 three BIF member institutions 

with combined assets of $58.6 million have failed. 

During the same period one SAIF member institution 

with assets of $2.3 billion failed. 

1Superior Bank FSB, Hinsdale, Illinois failed on July 27, 2001. 

2Sinclair National Bank, Gravette, Arkansas failed on September 7, 

2001. 

QUARTERLY PERCENTAGE CHANGE IN 

INSURANCE FUND BALANCES, 1999–2001 

Percent Change (not annualized) 

1.0 

1.3 1.4 

0.7 

1.5 

1.0 

1.6 

0.5 

2.0 

-1.7 

0.9 0.8 

-0.1 

-1.1 

-0.3 

1.1 

0.1 

2.6 

1.4 1.5 

0.8 0.9 

1 2 3 4 1 2 3 4 1 2 3 

Bank Insurance Fund (BIF) 

Savings Association 

Insurance Fund (SAIF) 

0 

1999 2000 2001 

FDIC Quarterly Banking Profile 

Third Quarter 2001 15 All FDIC-Insured Institutions 
 

 

 

 

 

 

 

 

 

 

 

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

(dollar figures in millions) 2001** 2000** 2000 1999 1998 1997 1996 

Number of institutions reporting.............................. 9,701 9,988 9,904 10,221 10,463 10,922 11,453 

Total assets......................................................... $ 7,842,663 $7,268,220 $7,461,966 $6,883,686 $6,530,950 $6,041,128 $5,607,333 

Total deposits...................................................... 5,083,278 4,749,179 4,914,827 4,538,085 4,386,298 4,125,862 3,925,059 

Number of problem institutions................................. 94 90 94 79 84 92 117 

Assets of problem institutions (in billions).................. $18 $19 $24 $10 $11 $6 $12 

Number of failed/assisted institutions........................ 4 5 7 8 3 1 6 

Assets of failed/assisted institutions (in billions)......... $2.36 $0.25 $0.41 $1.56 $0.37 $0.03 $0.22 

** 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 

2001 2001 2000 00:3-01:3 

 9,701 9,747 9,988 -2.9 

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

CONDITION DATA 

1,933,428 1,954,257 1,900,057 1.8 

Total assets..................................................................... $7,842,663 $7,634,855 $7,268,220 7.9

 Loans secured by real estate............................................. 2,507,110 2,489,674 2,382,610 5.2 

1-4 Family residential................................................... 1,528,788 1,537,170 1,495,127 2.3 

Home equity loans...................................................... 173,846 160,715 144,639 20.2 

Multifamily residential property....................................... 122,471 118,743 116,209 5.4 

Commercial real estate................................................... 557,314 542,125 514,465 8.3 

Construction, development, and land................................. 228,193 221,408 191,100 19.4 

Other real estate loans................................................... 70,343 70,229 65,710 7.1 

Commercial & industrial loans 1,048,053 1,063,259 1,074,517 -2.5

 Loans to individuals......................................................... 676,389 675,676 647,465 4.5

 Credit cards & related plans.......................................... 234,946 242,321 244,980 -4.1

 Other loans & leases...................................................... 502,877 494,160 500,776 0.4

 Less: Unearned income & contra accounts........................ 2,830 2,944 3,248 -12.9

 Total loans & leases......................................................... 4,731,598 4,719,825 4,602,120 2.8

 Less: Reserve for losses................................................... 76,067 73,384 69,788 9.0 

Net loans and leases......................................................... 4,655,531 4,646,440 4,532,332 2.7 

Securities........................................................................ 1,382,495 1,335,492 1,337,972 3.3 

Other real estate owned...................................................... 4,506 4,234 3,890 15.8 

Goodwill and other intangibles............................................. 134,170 126,344 121,181 10.7 

All other assets.................................................................. 1,665,961 1,522,344 1,272,845 30.9 

Total liabilities and capital................................................... 7,842,663 7,634,855 7,268,220 7.9

 Deposits....................................................................... 5,083,278 5,020,427 4,749,179 7.0

 Other borrowed funds...................................................... 1,525,423 1,500,881 1,481,911 2.9

 Subordinated debt............................................................ 96,388 93,476 87,359 10.3

 All other liabilities............................................................ 439,800 354,209 328,302 34.0

 Equity capital.................................................................. 697,774 665,861 621,470 12.3 

Loans and leases 30-89 days past due................................. 62,154 55,025 50,413 23.3 

Noncurrent loans and leases................................................ 58,934 55,228 44,343 32.9 

Restructured loans and leases............................................. 2,758 2,507 3,267 -15.6 

Direct and indirect investments in real estate........................... 914 881 958 -4.6 

Mortgage-backed securities................................................ 766,789 726,280 657,789 16.6 

Earning assets.................................................................. 6,765,739 6,648,228 6,371,733 6.2 

FHLB Advances (Source: TFR, FHFB, Call Reports)............... 447,128 438,157 423,100 5.7 

Unused loan commitments................................................... 5,062,511 4,963,937 4,578,218 10.6 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

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

Qtrs 2001 Qtrs 2000 %Change 2001 2000 00:3-01:3 

$375,862 $378,548 -0.7 $121,566 $132,061 -7.9 

191,263 202,274 -5.4 57,736 72,708 -20.6 

184,599 176,274 4.7 63,830 59,353 7.5 

30,221 21,245 42.2 12,461 7,284 71.1 

126,028 121,869 3.4 41,669 42,313 -1.5 

186,505 179,768 3.7 63,663 60,329 5.5 

6,059 -2,036 N/M 2,310 -595 N/M 

34,070 33,543 1.6 10,924 11,639 -6.1 

-251 -3 N/M 68 -24 N/M 

65,640 61,548 6.6 20,829 21,797 -4.4 

* Excludes insured branches of foreign banks (IBAs). Data do not include Superior Federal Bank, FSB, which is in conservatorship. N/M - Not meaningful 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 16 Third Quarter 2001 
 

TABLE III-C. Selected Insurance Fund Indicators* 

(dollar figures in millions) Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter %Change 

2001 2001 2000 00:3-01:3 

Bank Insurance Fund 

Reserve ratio (%)..................................................................... 1.32 1.33 1.35 -2.3 

Fund balance (unaudited)......................................................... $31,834 $31,681 $30,555 4.2 

Estimated insured deposits...................................................... 2,403,341 2,382,801 2,267,598 6.0 

SAIF-member Oakars............................................................ 63,265 61,462 57,729 9.6 

BIF-members........................................................................ 2,340,076 2,321,339 2,209,869 5.9 

Assessment base.................................................................. 3,475,805 3,418,145 3,185,629 9.1 

SAIF-member Oakars............................................................ 64,513 62,533 58,714 9.9 

BIF-members........................................................................ 3,411,292 3,355,612 3,126,915 9.1 

Savings Association Insurance Fund 

Reserve ratio (%)..................................................................... 1.39 1.40 1.45 -4.3 

Fund balance (unaudited)......................................................... $10,815 $10,792 10,706 1.0 

Estimated insured deposits...................................................... 779,183 772,091 740,857 5.2 

BIF-member Oakars............................................................... 321,747 317,475 292,876 9.9 

SAIF-member Sassers......................................................... 72,230 71,580 73,165 -1.3 

Other SAIF members............................................................ 385,206 383,036 374,816 2.8 

Assessment base.................................................................. 875,103 860,913 807,304 8.4 

BIF-member Oakars............................................................... 322,886 318,531 293,327 10.1 

SAIF-member Sassers......................................................... 90,153 88,367 86,927 3.7 

Other SAIF members............................................................ 462,064 454,016 427,050 8.2 

Insurance Fund Reserve Ratio* Fund Balances and Insured Deposits* 

Percent of Insured Deposits ($Millions) 

BIF BIF-Insured SAIF SAIF-Insured 

Balance Deposits Balance Deposits 

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

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

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

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

3/00 29,739 2,191,733 10,435 727,695 

6/00 29,780 2,239,060 10,538 738,186 

9/00 30,555 2,267,598 10,706 740,857 

12/00 30,975 2,300,470 10,759 754,633 

3/01 31,426 2,372,090 10,973 767,677 

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

9/01 31,834 2,403,341 10,815 779,183 

12/96 12/97 12/98 12/99 3/00 6/00 9/00 12/00 3/01 6/01 9/01 

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

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

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

Target 

Ratio 

1.25 

0 

1.34 

1.38 

1.39 

1.37 

1.36 

1.33 

1.35 1.35 

1.32 

1.33 

1.32 

1.31 

1.36 

1.37 

1.43 1.43 1.43 

1.45 

1.43 1.43 

1.40 

1.39 

BIF 

SAIF 

TABLE IV-C. Closed/Assisted Institutions 

(dollar figures in millions) 

BIF Members 

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

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

SAIF Members 

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

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

** Through September 30. 

2001** 2000** 2000 1999 1998 1997 1996 

3 

$59 

4 

$224 

6 

$378 

7 

$1,490 

3 

$371 

1 

$27 

5 

$186 

1 

$2,300 

1 

$30 

1 

$30 

1 

$71 

0 

$0 

0 

$0 

1 

$34 

FDIC Quarterly Banking Profile 

Third Quarter 2001 17 All FDIC-Insured Institutions 
 

 

 

 

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

(dollar figures in millions) 2001** 2000** 2000 1999 1998 1997 1996 

BIF Members 

Number of institutions reporting................................................ 8,398 8,629 8,571 8,834 9,031 9,404 9,823 

BIF-member Oakars............................................................ 820 753 756 744 745 778 793 

Other BIF-members............................................................... 7,578 7,876 7,815 8,090 8,286 8,626 9,030 

Total assets...........................................................................$ 6,838,983 $6,319,962 $6,509,805 $5,980,154 $5,702,773 $5,285,403 $4,857,761 

Total deposits........................................................................ 4,466,830 4,172,834 4,337,727 3,987,382 3,843,816 3,611,453 3,404,204 

Net income........................................................................... 58,227 55,210 73,642 73,971 64,334 61,459 54,483 

Return on assets (%)............................................................... 1.17 1.20 1.18 1.30 1.18 1.22 1.17 

Return on equity (%)............................................................... 13.38 14.09 13.90 15.11 13.81 14.44 14.14 

Noncurrent assets plus OREO to assets (%)................................. 0.83 0.68 0.72 0.62 0.64 0.67 0.77 

Number of problem institutions................................................... 70 74 74 66 68 73 86 

Assets of problem institutions................................................... $10,047 $11,163 $10,787 $4,450 $5,326 $4,598 $6,624 

Number of failed/assisted institutions....................................... 3 ...

Assets of failed/assisted institutions............................................. $59 $224 $378 $1,490 $371 $27 $182 

SAIF Members 

Number of institutions reporting................................................ 1,303 1,359 1,333 1,387 1,432 1,518 1,629 

SAIF-member Oakars............................................................ 129 124 123 123 116 112 94 

Other SAIF-members............................................................ 1,174 1,235 1,210 1,264 1,316 1,406 1,535 

Total assets...........................................................................$ 1,003,680 $948,258 $952,161 $903,532 $828,177 $755,724 $749,573 

Total deposits........................................................................ 616,448 576,345 577,100 550,703 542,481 514,409 520,855 

Net income........................................................................... 7,413 6,337 8,070 8,450 7,598 6,486 4,892 

Return on assets (%)............................................................... 1.02 0.92 0.89 0.99 0.98 0.94 0.67 

Return on equity (%)............................................................... 12.26 11.58 11.12 11.97 11.34 11.13 8.08 

Noncurrent assets plus OREO to assets (%)................................. 0.73 0.61 0.65 0.64 0.80 0.98 1.07 

Number of problem institutions................................................... 24 16 20 13 16 19 31 

Assets of problem institutions................................................... $8,275 $7,672 $13,053 $5,524 $5,992 $1,662 $5,548 

4 6 7 3 1 5 

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

Assets of failed/assisted institutions............................................. $2,300 $30 $30 $71 $0 $0 $35 

1 1 1 0 0 1 

* Excludes insured branches of foreign banks (IBAs). Data do not include Superior Federal Bank, FSB, which is in conservatorship. 

** 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, 2001 

Commercial Banks and Savings Institutions 

Number of Total Domestic 

Institutions Assets Deposits* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks............................................. 8,149 6,555,668 3,613,777 2,179,222 321,830 2,501,052 

BIF-member..................................................................... 8,040 6,455,151 3,544,423 2,162,127 286,217 2,448,345 

SAIF-member.................................................................. 109 100,517 69,354 17,095 35,613 52,708 

FDIC-Supervised............................................................... 4,997 1,192,270 881,955 594,811 71,689 666,500 

OCC-Supervised............................................................... 2,173 3,544,511 1,908,823 1,156,016 177,313 1,333,330 

Federal Reserve-Supervised................................................ 979 1,818,887 822,999 428,395 72,827 501,222 

FDIC-Insured Savings Institutions............................................. 1,553 1,288,737 789,757 222,916 457,353 680,269 

OTS-Supervised Savings Institutions....................................... 1,038 981,773 575,069 94,994 397,789 492,783 

BIF-member..................................................................... 40 135,299 69,383 51,020 12,584 63,604 

SAIF-member.................................................................. 998 846,474 505,685 43,974 385,206 429,179 

FDIC-Supervised State Savings Banks.................................... 515 306,964 214,688 127,923 59,564 187,486 

BIF-member..................................................................... 318 248,533 172,176 125,727 22,946 148,673 

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

Total Commercial Banks and 

 197 58,431 42,512 2,196 36,617 38,813 

Savings Institutions................................................ 9,702 7,844,405 4,403,534 2,402,139 779,183 3,181,322 

BIF-member........................................................................ 8,398 6,838,983 3,785,982 2,338,874 321,747 2,660,621 

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

Other FDIC-Insured Institutions 

 1,304 1,005,423 617,551 63,265 457,436 520,701 

U.S. Branches of Foreign Banks............................................. 18 9,822 4,531 1,202 0 1,202 

Total FDIC-Insured Institutions....................................... 9,720 7,854,227 4,408,064 2,403,341 779,183 3,182,524 

* Excludes $681 billion in foreign office deposits, which are uninsured. 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 18 Third Quarter 2001 
TABLE VII-C. Assessment Base Distribution and Rate Schedules 

BIF Assessment Base Distribution 

Assessable Deposits in Millions as of September 30, 2001 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2002 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

7,766 

 $3,351,218 

149 

 $30,414 

3 

 $331 

92.3 

96.4 

1.8 

0.9 

0.0 

0.0 

393 4.7 

$67,106 2.4 

19 0.2 

$1,444 0.0 

1 0.0 

$94 0.0 

63 

$20,810 

12 

$2,034 

10 

$2,354 

0.7 

0.1 

0.1 

0.1 

0.1 

0.1 

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, 2001 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2002 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

1,177 

 $834,264 

12 

 $1,979 

1 

 $1,145 

90.3 

95.3 

0.9 

0.2 

0.1 

0.1 

81 6.2 

$29,537 3.4 

9 0.7 

$1,640 0.2 

1 0.1 

$0 0.0 

18 

$5,145 

3 

$1,096 

2 

$296 

1.4 

0.6 

0.2 

0.1 

0.2 

0.0 

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

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

by on-site examinations. 

Assessment Rate Schedules 

First Semiannual 2002 Assessment Period 

Cents Per $100 of Assessable Deposits 

Capital Group 

Supervisory Risk Subgroup 

A B C 

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

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

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

0 

3 

 10 

3 

10 

24 

17 

24 

27 

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

Currently, the rate schedules are identical. 

FDIC Quarterly Banking Profile 

Third Quarter 2001 19 All FDIC-Insured Institutions 
NUMBER OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1993–2001 

Number of Institutions 

12/9312/9412/95 12/9612/9712/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 12/00 3/01 6/01 9/01 

572 

318 

193 

117 92 84 80 76 80 79 87 89 90 94 95 102 94 

Saving Institutions 

Commercial Banks 

Saving Institutions 146 71 49 35 21 15 16 14 11 13 15 16 15 18 17 22 20 

Commercial Banks 426 247 144 82 71 69 64 62 69 66 72 73 75 76 78 80 74 

ASSETS OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1993–2001 

$ Billions 

12/9312/9412/95 12/9612/9712/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 12/00 3/01 6/01 9/01 

$334 

$72 

$31 

$12 $6 $11 $10 $9 $8 $10 $10 $19 $19 $24 $23 $24 $18 

Saving Institutions 

Commercial Banks 

Saving Institutions 92 39 14 7 2 6 5 4 4 6 5 8 7 7 6 7 4 

Commercial Banks 242 33 17 5 5 5 5 5 4 4 5 11 12 17 17 17 14 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 20 Third Quarter 2001 
NOTES TO USERS 

This publication contains financial data and other information 

for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding the 

comparability of source data and reporting differences over 

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

FDIC-Insured Commercial Banks 

(Tables I-A through V-A.) 

This section covers commercial banks insured by the FDIC 

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

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

the three federal commercial bank regulators (the Board of 

Governors of the Federal Reserve System, the FDIC or the 

Office of the Comptroller of the Currency). 

FDIC-Insured Savings Institutions 

(Tables I-B through V-B.) 

This section covers savings institutions insured by either BIF 

or SAIF that operate under state or federal banking codes 

applicable to thrift institutions. Savings institutions in conservatorships are excluded from these tables while in conservatorship, where applicable. The institutions covered in this 

section are regulated by and submit financial reports to one 

of two Federal regulators — the FDIC or the Office of Thrift 

Supervision (OTS). 

FDIC-Insured Institutions by Insurance Fund 

(Tables I-C through VII-C.) 

Summary balance-sheet and earnings data are provided for 

commercial banks and savings institutions according to 

insurance fund membership. BIF-member institutions may 

acquire SAIF-insured deposits, resulting in institutions with 

some deposits covered by both insurance funds. Also, SAIF 

members may acquire BIF-insured deposits. The insurance 

fund membership does not necessarily reflect which fund 

insures the largest percentage of an institution’s deposits. 

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

each include deposits from both insurance funds. Depository 

institutions that are not insured by the FDIC through either 

the BIF or SAIF are not included in the FDIC Quarterly 

Banking Profile. U.S. branches of institutions headquartered 

in foreign countries and non-deposit trust companies are not 

included unless otherwise indicated. Efforts are made to 

obtain financial reports for all active institutions. However, in 

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

DATA SOURCES 

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Call Reports and the OTS 

Thrift Financial Reports submitted by all FDIC-insured 

depository institutions. This information is stored on and 

retrieved from the FDIC’s Research Information System 

(RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting 

and accounting requirements of the FFIEC Call Reports. 

Parent institutions are required to file consolidated reports, 

while their subsidiary financial institutions are still required to 

file separate reports. Data from subsidiary institution reports 

are included in the Quarterly Banking Profile tables, which 

can lead to double-counting. No adjustments are made for 

any double-counting of subsidiary data. 

All asset and liability figures used in calculating performance 

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

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

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

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

rates represent the percentage change over a 12-month 

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

institutions in the current period. 

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

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

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

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

ACCOUNTING CHANGES 

FASB Statement No. 133 Accounting for Derivative 

Instruments and Hedging Activities — establishes new 

accounting and reporting standards. Derivatives were previously off-balance sheet items, but beginning in 2001 all 

banks must recognize derivatives as either assets or liabilities on the balance sheet, measured at fair value. A derivative may be specifically designated as a “fair value hedge,” a 

“cash flow hedge,” or a hedge of a foreign currency exposure. The accounting for changes in the value of a derivative 

(gains and losses) depends on the intended use of the derivative, its resulting designation, and the effectiveness of the 

hedge. Derivatives held for purposes other than trading are 

reported as “other assets” (positive fair values) or “other liabilities” (negative fair values). For a fair value hedge, the gain 

or loss is recognized in earnings and “effectively” offsets loss 

or gain on the hedged item attributable to the risk being 

hedged. Any ineffectiveness of the hedge could result in a 

net gain or loss on the income statement. Accumulated net 

gains (losses) on cash flow hedges are recorded on the balance sheet as “accumulated other comprehensive income” 

and the periodic change in the accumulated net gains (losses) for cash flow hedges is reflected directly in equity as the 

value of the derivative changes. 

Initial transition adjustments upon adoption of FAS 133 are 

reported as adjustments to net income in the income statement as extraordinary items. Upon implementing FAS 133, 

a bank may transfer any debt security categorized as heldto-maturity into the available-for-sale category or the trading 

category. Unrealized gains (losses) on transferred held-tomaturity debt securities on the date of initial application must 

be reflected as an adjustment to net income if transferred to 

the trading category or an adjustment to equity if transferred 

to the available-for-sale category. 

Subchapter S Corporations — The Small Business Job 

Protection Act of 1996 changed the Internal Revenue Code 

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

FDIC Quarterly Banking Profile 

Third Quarter 2001 21 Notes to Users 
treated as a pass-through entity, similar to a partnership, for 

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

federal income taxes at the corporate level. Its taxable 

income flows through to its shareholders in proportion to their 

stock ownership, and the shareholders generally pay federal 

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

have the effect of reducing institutions’ reported taxes and 

increasing their after-tax earnings. 

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

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

DEFINITIONS (in alphabetical order) 

All other assets — total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

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

agreements to resell, fair market value of derivatives, and 

other assets. 

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

sheet credit losses, fair market value of derivatives, and 

other liabilities. 

Assessment base distribution — assessable deposits 

consist of BIF and SAIF deposits in banks’ domestic offices 

with certain adjustments. Each institution’s assessment 

depends on its assigned risk-based capital category and 

supervisory risk subgroup: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) Capital * Capital * Leverage Equity 

Well-capitalized >10 and >6 and >5 — 

Adequately 

capitalized >8 and >4 and >4 — 

Undercapitalized >6 and >3 and >3 — 

Significantly 

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

Critically 

undercapitalized — — — <2 

*As a percentage of risk-weighted assets. 

For purpose of BIF and SAIF assessments, risk-based 

assessment rules combine the three lowest capital rating 

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

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

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

those rated 4 or 5 are in subgroup C. 

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

attributable amount acquired from BIF members. 

Construction and development loans — includes loans 

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

land acquisition and development. 

Core capital — common equity capital plus noncumulative 

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

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

with supervisory capital regulations. 

Cost of funding earning assets — total interest expense 

paid on deposits and other borrowed money as a percentage 

of average earning assets. 

Derivatives (notional amount) — represents the sum of the 

following: interest-rate contracts (defined as the “notional” 

value of interest-rate swap, futures, forward and option contracts), foreign-exchange-rate contracts, commodity contracts and equity contracts (defined similarly to interest-rate 

contracts). 

Futures and forward contracts — a contract in which the 

buyer agrees to purchase and the seller agrees to sell, at a 

specified future date, a specific quantity of an underlying variable or index at a specified price or yield. These contracts 

exist for a variety of variables or indices, (traditional agricultural or physical commodities, as well as currencies and interest rates). Futures contracts are standardized and are traded 

on organized exchanges which set limits on counterparty 

credit exposure. Forward contracts do not have standardized 

terms and are traded over the counter. 

Option contracts — a contract in which the buyer acquires 

the right to buy from or sell to another party some specified 

amount of an underlying variable or index at a stated price 

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

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

discretion of the buyer of the contract. 

Swaps — an obligation between two parties to exchange a 

series of cash flows at periodic intervals (settlement dates), 

for a specified period. The cash flows of a swap are either 

fixed, or determined for each settlement date by multiplying 

the quantity (notional principal) of the underlying variable or 

index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each 

payment but is not exchanged. 

Direct and indirect investments in real estate — excludes 

loans secured by real estate and property acquired through 

foreclosure. 

Earning assets — all loans and other investments that earn 

interest or dividend income. 

Efficiency Ratio — Noninterest expense less amortization 

of intangible assets as a percent of net interest income plus 

noninterest income. This ratio measures the proportion of net 

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

Estimated insured deposits — in general, insured deposits 

are estimated to be total domestic deposits minus estimated 

uninsured deposits. The uninsured estimate is calculated as 

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

Beginning June 30, 2000 the amount of estimated uninsured 

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

or procedure for calculating uninsured deposits. 

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

liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the FDIC 

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

“assisted” when the institution remains open and receives 

some insurance funds in order to continue operating. 

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

reported by Call Report filers (or as furnished by the Federal 

Housing Finance Board (FHFB) for Call filers prior to 2001) 

and as reported by TFR filers. 

Goodwill and other intangibles — intangible assets 

include servicing rights, purchased credit card relationships 

FDIC Quarterly Banking Profile 

Notes to Users 22 Third Quarter 2001 
and other identifiable intangible assets. 

Loans secured by real estate — includes home equity 

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

and all other loans secured by real estate. 

Loans to individuals — includes outstanding credit card 

balances and other secured and unsecured consumer loans. 

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

with remaining maturities or repricing intervals of over five years. 

Mortgage-backed securities — certificates of participation 

in pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored 

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

Net charge-offs — total loans and leases charged off 

(removed from balance sheet because of uncollectibility), 

less amounts recovered on loans and leases previously 

charged off. 

Net interest margin — the difference between interest and 

dividends earned on interest-bearing assets and interest 

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

made for interest income that is tax exempt. 

Net operating income — income excluding discretionary 

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

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

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

in nonaccrual status. 

Noncurrent loans & leases — the sum of loans and leases 

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

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

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

issued to the U.S. Treasury, FHLB advances, other borrowed 

money, mortgage indebtedness, obligations under capitalized leases and trading liabilities, less revaluation losses on 

assets held in trading accounts. 

Other real estate owned — primarily foreclosed property. 

Direct and indirect investments in real estate ventures are 

excluded. The amount is reflected net of valuation 

allowances. For institutions that file a Thrift Financial Report 

(TFR), the valuation allowance subtracted also includes 

allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported 

gross of valuation allowances. 

Percent of institutions with earnings gains — the percent 

of institutions that increased their net income (or decreased 

their losses) compared to the same period a year earlier. 

“Problem” institutions — federal regulators assign a composite rating to each financial institution, based upon an evaluation of financial and operational criteria. The rating is 

based on a scale of 1 to 5 in ascending order of supervisory 

concern. “Problem” institutions are those institutions with 

financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending upon the 

degree of risk and supervisory concern, they are rated either 

a “4” or “5”. For all BIF-member institutions, and for all SAIFmember institutions for which the FDIC is the primary federal regulator, FDIC composite ratings are used. For all 

SAIF-member institutions whose primary federal regulator is 

the OTS, the OTS composite rating is used. 

Reserves for losses — the allowance for loan and lease 

losses on a consolidated basis. Prior to March 31, 2001 

reserves for losses included the allocated transfer risk 

reserve, which is no longer included as part of the loss 

reserve, but netted from loans and leases. 

Restructured loans and leases — loan and lease financing 

receivables with terms restructured from the original contract. Excludes restructured loans and leases that are not in 

compliance with the modified terms. 

Return on assets — net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total assets. The basic yardstick of bank profitability. 

Return on equity — net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total equity capital. 

Risk-weighted assets — assets adjusted for risk-based 

capital definitions which include on-balance-sheet as well as 

off-balance-sheet items multiplied by risk-weights that range 

from zero to 100 percent. A conversion factor is used to 

assign a balance sheet equivalent amount for selected offbalance-sheet accounts. 

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

attributable amount acquired from SAIF members. 

Securities — excludes securities held in trading accounts. 

Banks’ securities portfolios consist of securities designated 

as “held-to-maturity”, which are reported at amortized cost 

(book value), and securities designated as “available-forsale”, reported at fair (market) value. 

Securities gains (losses) — realized gains (losses) on 

held-to-maturity and available-for-sale securities, before 

adjustments for income taxes. Thrift Financial Report (TFR) 

filers also include gains (losses) on the sales of assets held 

for sale. 

Troubled real estate asset rate — noncurrent real estate 

loans plus other real estate owned as a percent of total real 

estate loans and other real estate owned. 

Unearned income & contra accounts — unearned income 

for Call Report filers only. 

Unused loan commitments — includes credit card lines, 

home equity lines, commitments to make loans for construction, loans secured by commercial real estate, and unused 

commitments to originate or purchase loans. 

Volatile liabilities — the sum of large-denomination time 

deposits, foreign-office deposits, federal funds purchased, 

securities sold under agreements to repurchase, and other 

borrowings. 

Yield on earning assets — total interest, dividend and fee 

income earned on loans and investments as a percentage of 

average earning assets. 

FDIC Quarterly Banking Profile 

Third Quarter 2001 23 Notes to Users