Donna Tanoue, Chairman 

Fourth Quarter 2000 

Division of Research 

& Statistics 

Don Inscoe 

Associate Director 

Statistics Branch 

(202) 898-3940 

Tim Critchfield 

(202) 898-8557 

Jim McFadyen 

(202) 898-7027 

Ross Waldrop 

(202) 898-3951 

COMMERCIAL BANK PERFORMANCE—FOURTH QUARTER, 2000 

n Commercial Banks Earn $17.8 Billion In 4th Quarter 

n Loan-Loss Provisions Up Sharply At A Few Large Banks 

n Full-Year Earnings Fall For First Time In Nine Years 

n Most Banks Report Higher Profits 

n Net Interest Margin Declines To Ten-Year Low 

Insured commercial banks reported $17.8 billion in 

net income in the fourth quarter of 2000, an 

increase of $91 million (0.5 percent) over industry 

earnings in the fourth quarter of 1999. The slight 

gain was made possible by a $471-million 

improvement in results from sales of securities. In 

the fourth quarter, securities sales produced pretax 

net gains totaling $196 million; a year ago, securities sales resulted in $275 million in net losses. 

The decline in the industry's net operating income 

(which excludes proceeds from securities sales 

and extraordinary items) stemmed from rising 

expenses for loan-loss provisions at a number of 

large banks and a slowdown in growth of banks’ 

noninterest income. 

Banks’ provisions for loan losses rose to $9.5 billion in the fourth quarter, an increase of $3.4 billion 

(54.7 percent) from the level of a year earlier. This 

is the largest quarterly loss provision since the 

QUARTERLY NET INCOME, 

1996–2000 $ Billions 

Securities and Other Gains/Losses, Net 

19.5 19.3 Net Operating Income 19.5 

18.0 17.7 17.8 16.9 15.916.1 15.1 14.7 14.514.614.7 14.8 15.3

13.8 13.213.7 

12.0 

0.0 

1 2 3 4 1 2 3 4 1 2 34 1 2 3 4 1 2 34 

1996 1997 1998 1999 2000 

fourth quarter of 1991. It absorbed 10.4 percent of 

the industry’s net operating revenue (net interest 

income plus total noninterest income) in the quarter. In the fourth quarter of 1999, loss provisions 

absorbed 7.0 percent of net operating revenue. 

Earnings were helped by slower growth in overhead costs—noninterest expenses were only $484 

million (0.9 percent) higher than a year ago—but 

were penalized by a slowdown in noninterest 

income growth. Noninterest revenues were only 

$643 million (1.7 percent) higher than in the fourth 

quarter of 1999, mainly because of a lack of growth 

in fee income. 

The average return on assets (ROA) was 1.16 percent in the fourth quarter, down from 1.27 percent 

a year ago. Slightly more than half (50.5 percent) 

of all banks reported a quarterly ROA of 1 percent 

or higher, and 53.6 percent reported a higher ROA 

compared to a year earlier. 

Net interest margins declined for the fifth consecutive quarter. Asset yields increased only for the 

largest size group of banks (assets greater than 

$10 billion), while funding costs rose for all assetsize groups. At 3.90 percent, the industry’s net 

interest margin was only 3 basis points lower than 

in the third quarter. A year ago, it was 4.08 percent. The current level represents the lowest quarterly net interest margin since the second quarter 

of 1988. Despite the margin decline, net interest 

income was $2.6 billion (5.3 percent) higher than a 

year ago, because of an 8.7-percent increase in 

the industry’s interest-earning assets over the past 

12 months. 

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. 
 

ANNUAL RETURN ON ASSETS (ROA) AND restructuring expenses. The industry’s full-year net 

EQUITY (ROE), 1934–2000 interest margin declined for the seventh time in the last ROA (%) ROE (%) 

eight years, falling below 4 percent for the first time 

since 1990. Net interest income increased by 6.0 percent over 1999, as an 8.7-percent rise in interest-earning assets outweighed the declining net interest 

margin. The industry’s net interest margin of 3.95 percent in 2000 was the lowest level since 1990. The fullyear ROA of 1.19 percent was down from the record 

1.31 percent registered in 1999, but it extended the 

industry’s streak of consecutive years with an ROA 

above 1 percent to eight. Almost 60 percent of the 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 00 

0.0 

0.5 

1.0 

1.5 

0 

5 

10 

15 Return on Equity (ROE) 

Return on Assets (ROA) 

Commercial banks’ string of eight consecutive years of 

record earnings came to an end in 2000, as full-year 

net income of $71.2 billion fell $380 million (0.5 percent) short of 1999’s total. Net operating income, 

which excludes proceeds from sales of securities and 

extraordinary items, was actually $1.4 billion (2.0 percent) higher in 2000 than in 1999. But securities sales 

in 2000 produced net losses of $2.3 billion, compared 

to $181 million in net gains in 1999, as higher interest 

rates reduced the values of banks’ fixed-rate securities 

holdings. The industry’s earnings decline was mostly 

attributable to problems at a few large banks. More 

than two out of every three commercial banks (67.9 

percent) reported higher earnings than in 1999, and a 

majority (53.5 percent) reported higher full-year ROAs. 

Sharply higher loan-loss provisions had a significant 

effect on industry earnings in 2000. For the full year, 

loss provisions totaled $29.3 billion, an increase of 

$7.4 billion (34.1 percent) over 1999. There has not 

been a larger annual increase in loss provisioning by 

the industry since 1988-89. Industry earnings were 

also hurt by sluggish growth in noninterest income. 

After posting double-digit growth rates in each of the 

previous four years, noninterest revenues increased 

by only 5.8 percent in 2000. On the positive side, noninterest expenses increased at a slower rate (5.7 percent) in 2000, despite some large individual 

TRENDS IN COMMERCIAL BANK INCOME AND 

EXPENSE, 1988–2000 

% of Net Operating Revenue* 

8,315 commercial banks reporting year-end results 

posted an ROA of 1 percent or higher in 2000. 

NONCURRENT LOAN RATES, 1984–2000 

Percent of Loans 

1984 1986 1988 1990 1992 1994 1996 1998 2000 

0 

1 

2 

3 

4 

5 

6 

Total Real Estate Loans 

Commercial and 

Industrial Loans 

Loan to Individuals 

All Other Loans 

Note: Noncurrent loan rates represent the percentage of loans that are past due 

 90 days or more or in nonaccrual status. 

The amount of commercial banks’ loans that were noncurrent—90 days or more past due or in nonaccrual 

status—rose by $4.1 billion (10.5 percent) in the fourth 

quarter. This quarterly increase is the largest since the 

first quarter of 1991. The percentage of banks’ loans 

that were noncurrent rose from 1.03 percent to 1.12 

percent during the quarter. Loans to commercial and 

industrial borrowers accounted for the largest portion 

of the increase. Noncurrent commercial and industrial 

loans (C&I loans) increased by $1.6 billion, and the 

noncurrent rate on banks’ C&I loans rose from 1.52 

percent to 1.67 percent, the highest it has been since 

the first quarter of 1994. Noncurrent loans in the “all 

other loans” category, which includes loans for purchasing and carrying securities, more than doubled in 

the fourth quarter. The amount of “all other loans” that 

were noncurrent increased from $764 million to $1.7 

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 

19% 

5% 8% 

30% 

43% 

68% 

58% 

* Net operating revenue equals net interest income plus total noninterest income 

Noninterest Expense 

Noninterest Income 

Loan-Loss Provision 

0.0 

billion, and the noncurrent rate rose from 0.59 percent 

to 1.31 percent. Noncurrent loans increased in most 

other loan categories as well during the fourth quarter, 

but not to the degree seen in C&I loans. During the full 

year, noncurrent loans increased by $9.9 billion (30.0 

percent). Commercial and industrial loans accounted 

for $6.1 billion (61.4 percent) of the increase. The rising trend in troubled C&I loans was not especially 

broad-based. During 2000, slightly more than one in 

three commercial banks (38.8 percent) reported an 

increase in the percentage of their C&I loans that were 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 Fourth Quarter 2000 
noncurrent. However, these banks account for more 

than three-quarters (77.9 percent) of all the commercial and industrial loans held by the banking industry. 

Banks charged-off $7.7 billion in bad loans in the fourth 

quarter, a 27.1-percent ($1.6 billion) increase over the 

fourth quarter of 1999. C&I loans accounted for $3.0 

billion (39.2 percent) of the quarter’s charge-offs. This 

was the highest level for C&I charge-offs in nine years 

(since the fourth quarter of 1991). A year ago, banks 

charged-off $1.9 billion in C&I loans. The annualized 

net charge-off rate on C&I loans rose to 1.15 percent, 

from 0.79 percent a year ago. The only other loan category where the net charge-of rate showed a significant increase was home equity loans. The net 

charge-off rate was 0.24 percent in the fourth quarter, 

up from 0.16 percent in the fourth quarter of 1999. 

Almost all other loan categories had minor increases in 

their net charge-off rates compared to a year earlier, 

except for credit-card loans. The net charge-off rate on 

credit-card loans in the fourth quarter was 4.35 percent, down from 4.48 percent a year earlier. 

ANNUAL NET CHARGE-OFF RATES ON LOANS, 

1984–2000 Percent of Loans 

3 

2 

1 

0 

* Includes loans to foreign governments, depository institutions 

and lease receivables. 

Loan growth slowed in the fourth quarter, as banks’ 

holdings of residential mortgage loans declined and 

C&I loans registered their smallest quarterly increase 

in seven years. Loans secured by 1-4 family residential properties fell by $4.2 billion during the quarter; if 

home equity loans are excluded, all other 1-4 family 

residential loans declined by $8.8 billion. Commercial 

and industrial loans increased by $3.9 billion, the 

smallest quarterly change since the third quarter of 

1993. Of the major loan categories, only credit card 

loans showed normal seasonal growth. Credit-card 

loans increased by $20.7 billion (9.1 percent) during 

the quarter. 

Banks’ domestic deposits rose strongly in the fourth 

quarter. Brokered deposit growth continued to be propelled by the sweeping of cash management accounts 

into insured deposit accounts at banks affiliated with 

brokerage firms. Brokered deposits rose by $26.9 billion (16.1 percent) during the quarter, and were up by 

FDIC Quarterly Banking Profile 

Total Real Estate Loans 

Commercial and 

Industrial Loans 

All Other Loans* Loans to Individuals 

1984 1986 1988 1990 1992 1994 1996 1998 2000 

$95.2 billion (96.6 percent) over the last 12 months. 

Two banks accounted for 63.9 percent of the quarterly 

increase and 51.2 percent of the annual growth in brokered deposits. Demand deposits increased by $41.6 

billion (8.5 percent) during the fourth quarter. 

Equity capital increased by $8.4 billion (1.6 percent) in 

the fourth quarter. The rise was made possible by a 

$9.5-billion increase in unrealized gains on banks’ 

available-for-sale securities. During the quarter, dividends paid by the industry exceeded net income by 

$801 million, so there was no contribution to equity 

from retained earnings. The increase in equity did not 

keep pace with growth in total assets, and the industry’s equity-to-assets ratio declined from 8.59 percent 

to 8.49 percent. A year ago, the ratio stood at 8.37 percent. 

Banks increased their loss reserves by $1.5 billion in 

the fourth quarter. Except for the $2.1-billion increase 

in reserves in the second quarter, this is the largest 

quarterly addition to reserves since the fourth quarter 

of 1990. It lifted the industry’s ratio of reserves to loans 

from 1.66 percent to 1.68 percent. However, because 

of the large increase in noncurrent loans, the industry’s 

“coverage ratio” declined to $1.49 in reserves for every 

$1.00 of noncurrent loans from $1.61 at the end of the 

third quarter. This is the lowest level for the coverage 

ratio since the middle of 1994. 

CHANGES IN THE NUMBER OF FDIC-INSURED 

COMMERCIAL BANKS, 1985–2000 

Number of Banks 

600 

500 

400 

300 

200 

100 

0 

The number of insured commercial banks reporting 

financial results fell from 8,376 to 8,315 in the fourth 

quarter. There were 51 new charters, while 109 banks 

were merged into other institutions, and two banks 

failed. During the year, the number of commercial 

banks declined by 265. There were 192 new charters 

in 2000. Mergers absorbed 453 banks, and 6 insured 

commercial banks failed. At the end of the year, there 

were 76 commercial banks on the FDIC’s “Problem 

List,” up from 75 at the beginning of the quarter and 66 

at the beginning of the year. The combined assets of 

these “Problem” banks totaled $17 billion at year-end, 

compared to $14 billion at the beginning of the quarter, 

and $4 billion at the beginning of the year. 

New Charters 

Mergers 

Failures 

1986 1988 1990 1992 1994 1996 1998 2000 

Fourth Quarter 2000 3 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

2000 1999 1998 1997 1996 1995 1994 

Return on assets (%)............................................................................................ 1.19 1.31 1.19 1.23 1.19 1.17 1.15 

Return on equity (%)............................................................................ 14.07 15.31 13.93 14.68 14.45 14.66 14.61 

Core capital (leverage) ratio (%)......................................................................... 7.71 7.79 7.54 7.56 7.64 7.61 7.64 

Noncurrent assets plus 

other real estate owned to assets (%)......................................................... 0.74 0.63 0.65 0.66 0.75 0.85 1.01 

Net charge-offs to loans (%)...................................................................... 0.64 0.61 0.67 0.64 0.58 0.49 0.50 

Asset growth rate (%)................................................................................... 8.79 5.37 8.53 9.54 6.16 7.53 8.21 

Net interest margin (%)..................................................................................... 3.95 4.07 4.07 4.21 4.27 4.29 4.36 

Net operating income growth (%).......................................................................... 2.02 20.42 2.24 12.46 6.43 7.48 16.18 

Number of institutions reporting.............................................................. 8,315 8,580 8,774 9,142 9,527 9,940 10,451 

Percentage of unprofitable institutions (%)................................................................................... 7.06 7.47 6.11 4.85 4.28 3.55 3.98 

Number of problem institutions................................................................................... 76 66 69 71 82 144 247 

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

Number of failed/assisted institutions.......................................................................... 6 7 3 1 5 6 11 

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

(dollar figures in millions) 

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

Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

2000 2000 1999 99:4-00:4 

8,315 8,376 8,580 -3.1 

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

CONDITION DATA

1,662,335 1,654,929 1,657,535 0.3 

 Total assets................................................................................................... $6,238,713 $6,064,073 $5,734,761 8.8

 Loans secured by real estate............................................................................................. 1,670,278 1,659,388 1,510,036 10.6

 Commercial & industrial loans.......................................................................................... 1,048,248 1,044,305 970,986 8.0

 Loans to individuals............................................................................... 609,713 584,294 558,351 9.2

 Farm loans................................................................................ 48,078 47,331 45,276 6.2

 Other loans & leases.............................................................................. 442,789 444,833 410,307 7.9

 Less: Unearned income.................................................................................. 2,915 3,046 3,671 -20.6

 Total loans & leases................................................................................................ 3,816,191 3,777,104 3,491,285 9.3

 Less: Reserve for losses.................................................................................. 64,054 62,540 58,770 9.0

 Net loans and leases............................................................................. 3,752,138 3,714,565 3,432,515 9.3

 Securities....................................................................................................................................... 1,077,668 1,061,168 1,046,343 3.0

 Other real estate owned........................................................................................... 2,905 2,819 2,795 3.9

 Goodwill and other intangibles............................................................................... 102,703 104,511 98,042 4.8

 All other assets................................................................................. 1,303,299 1,181,011 1,155,066 12.8 

Total liabilities and capital.................................................................... 6,238,713 6,064,073 5,734,761 8.8

 Noninterest-bearing deposits............................................................... 765,893 704,979 703,381 8.9

 Interest-bearing deposits....................................................................... 3,410,682 3,314,619 3,127,446 9.1

 Other borrowed funds..................................................................... 1,107,232 1,127,335 1,048,828 5.6

 Subordinated debt...................................................................... 87,043 84,510 76,450 13.9

 All other liabilities......................................................................... 338,280 311,452 298,935 13.2

 Equity capital.................................................................................... 529,583 521,177 479,722 10.4 

Loans and leases 30-89 days past due......................................................... 47,936 43,201 39,701 20.7 

Noncurrent loans and leases................................................................... 42,911 38,851 32,996 30.0 

Restructured loans and leases........................................................................ 1,311 1,748 1,146 14.4 

Direct and indirect investments in real estate.............................................................. 293 316 279 5.2 

1-4 Family residential mortgages...................................................................... 916,383 920,554 839,199 9.2 

Mortgage-backed securities.................................................................................. 470,469 448,966 454,463 3.5 

Earning assets................................................................................... 5,375,687 5,254,621 4,947,473 8.7 

Long-term assets (5+ years).............................................................................................. 1,186,292 1,177,561 1,181,056 0.4 

Volatile liabilities................................................................................... 2,182,480 2,166,119 2,003,859 8.9 

Foreign office deposits.................................................................... 706,666 694,207 655,589 7.8 

FHLB Advances (Source: FHFB).................................................................... 174,742 175,003 155,407 12.4 

Unused loan commitments................................................................. 4,465,709 4,330,673 3,974,072 12.4 

Off-balance-sheet derivatives............................................................... 40,758,689 38,750,721 34,883,794 16.8 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

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

2000 1999 %Change 2000 1999 99:4-00:4 

$427,985 $367,322 16.5 $112,401 $97,179 15.7 

224,195 175,129 28.0 60,571 47,935 26.4

203,790 192,193 6.0 51,830 49,244 5.3 

29,254 21,814 34.1 9,491 6,134 54.7 

152,751 144,400 5.8 39,429 38,786 1.7 

215,753 204,196 5.7 55,263 54,779 0.9 

-2,285 181 N/M 196 -275 N/M 

38,043 39,377 -3.4 8,835 9,315 -5.2 

-30 169 N/M -46 202 N/M

71,176 71,556 -0.5 17,821 17,730 0.5 

23,613 20,360 16.0 7,658 6,027 27.1 

53,798 51,933 3.6 18,622 16,344 13.9

72,762 71,321 2.0 17,366 17,707 -1.9 

N/M - Not meaningful 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 Fourth Quarter 2000 
TABLE III-A. Full Year 2000, FDIC-Insured Commercial Banks 

FULL YEAR 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 

8,315 4,842 3,078 313 82 665 1,425 1,791 2,144 1,384 906 

Total assets (in billions).......................................................................... $6,238.7 $231.2 $773.0 $884.1 $4,350.4 $2,181.0 $1,610.8 $1,071.9 $419.0 $302.3 $653.7 

Total deposits (in billions)........................................................................ 4,176.6 194.9 632.5 621.6 2,727.6 1,371.4 1,096.0 729.8 290.7 241.4 447.3 

Net income (in millions).................................................................... 71,176 2,220 9,396 10,927 48,633 27,186 16,692 10,652 5,637 2,839 8,170 

% of unprofitable institutions................................................................... 7.1 10.6 1.8 4.2 7.3 10.1 11.8 5.7 3.5 5.9 10.4 

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

Performance ratios (%) 

67.8 65.4 72.1 65.8 48.8 68.9 68.5 64.4 65.9 69.8 73.7 

Yield on earning assets.................................................. 8.29 8.41 8.52 8.48 8.20 8.08 8.17 8.22 8.70 8.31 9.15 

Cost of funding earning assets.............................................................. 4.34 3.87 4.00 4.20 4.46 4.52 4.25 4.56 4.24 3.84 3.93 

Net interest margin............................................................... 3.95 4.54 4.51 4.28 3.73 3.56 3.92 3.66 4.46 4.47 5.22 

Noninterest income to earning assets.......................................................... 2.96 1.22 1.75 2.56 3.38 3.99 2.46 1.89 2.79 1.43 3.63 

Noninterest expense to earning assets................................................................. 4.18 3.89 3.91 3.96 4.29 4.62 3.91 3.35 4.17 3.73 5.14 

Credit loss provision to assets.................................................................... 0.49 0.35 0.33 0.56 0.51 0.44 0.40 0.44 0.63 0.48 0.90 

Net operating income to assets........................................................... 1.22 1.01 1.29 1.32 1.19 1.28 1.12 1.07 1.44 1.05 1.44 

Return on assets.................................................................. 1.19 1.01 1.28 1.29 1.16 1.31 1.05 1.03 1.42 0.98 1.38 

Return on equity............................................................... 14.07 9.09 13.56 14.57 14.42 16.38 12.37 12.89 15.40 11.02 13.61 

Net charge-offs to loans and leases....................................................... 0.64 0.40 0.33 0.68 0.71 0.79 0.50 0.40 0.83 0.43 1.01 

Credit loss provision to net charge-offs.................................................................... 123.88 141.75 152.66 129.76 119.62 104.92 122.84 163.35 112.40 189.04 133.31 

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

Condition Ratios (%) 

58.48 66.97 61.48 55.94 58.11 59.10 59.09 58.77 55.65 61.42 55.83 

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

Loss allowance to: 

86.17 91.78 91.59 89.47 84.23 83.15 86.34 89.49 89.82 89.05 86.69 

Loans and leases........................................................ 1.68 1.38 1.41 1.76 1.73 1.84 1.51 1.48 1.59 1.54 2.13 

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

Noncurrent assets plus 

149.27 153.28 177.13 190.11 139.13 139.56 130.69 146.06 195.23 171.36 207.96 

other real estate owned to assets........................................................ 0.74 0.67 0.61 0.64 0.79 0.73 0.82 0.74 0.61 0.62 0.73 

Equity capital ratio............................................................. 8.49 11.08 9.60 8.99 8.05 8.00 8.61 7.91 9.50 8.93 9.89 

Core capital (leverage) ratio............................................................ 7.71 11.01 9.28 8.36 7.11 7.48 7.50 7.57 8.25 8.21 8.65 

Tier 1 risk-based capital ratio...................................................................................... 9.42 16.34 12.96 11.01 8.30 9.53 8.91 8.81 10.45 11.42 10.01 

Total risk-based capital ratio................................................................ 12.13 17.44 14.12 12.81 11.48 12.47 11.66 11.64 12.60 13.27 12.39 

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

Structural Changes 

89.84 71.86 78.63 88.64 93.99 81.52 95.07 98.24 96.84 74.41 92.59 

New Charters........................................................................................ 192 189 2 1 0 18 67 35 23 13 36 

Banks absorbed by mergers...................................................................... 453 193 207 47 6 35 108 104 99 59 48 

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

PRIOR FULL YEARS

 (The way it was...) 

6 5 1 0 0 0 1 1 2 0 2 

Number of institutions................................1999 8,580 5,156 3,030 318 76 678 1,450 1,858 2,205 1,456 933

 ...............................................1997 9,142 5,853 2,922 301 66 714 1,525 1,998 2,329 1,600 976

 ...............................................1995 9,940 6,658 2,861 346 75 794 1,659 2,178 2,487 1,773 1,049 

Total assets (in billions).............................1999 $5,734.8 $242.4 $754.7 $915.2 $3,822.5 $2,009.6 $1,531.6 $952.0 $389.6 $314.2 $537.7

 ................................................1997 5,014.9 267.8 727.7 902.7 3,116.7 1,893.9 946.9 804.8 335.0 355.9 678.4

 ................................................1995 4,312.7 297.9 696.7 1,052.8 2,265.2 1,625.6 737.7 695.2 287.5 326.4 640.3 

Return on assets (%)................................1999 1.31 1.01 1.34 1.48 1.28 1.24 1.29 1.28 1.48 1.15 1.63

 ................................................1997 1.23 1.18 1.33 1.36 1.18 1.14 1.23 1.29 1.43 1.22 1.35

 ................................................1995 

Net charge-offs to loans & leases (%) 

1.17 1.18 1.24 1.27 1.10 1.02 1.19 1.15 1.50 1.20 1.41 

 ................................................1999 0.61 0.37 0.36 0.68 0.66 0.79 0.45 0.37 0.76 0.47 0.95

 ................................................1997 0.64 0.28 0.36 1.08 0.58 0.73 0.46 0.50 0.82 0.38 0.83

 ................................................1995 

Noncurrent assets plus 

0.49 0.24 0.37 0.69 0.46 0.64 0.32 0.31 0.54 0.24 0.62 

OREO to assets (%)..............................1999 0.63 0.66 0.58 0.58 0.66 0.72 0.58 0.55 0.60 0.61 0.67

 ................................................1997 0.66 0.71 0.65 0.77 0.63 0.73 0.59 0.58 0.69 0.52 0.72

 ................................................1995 0.85 0.78 0.80 0.82 0.89 1.03 0.64 0.63 0.64 0.62 1.09 

Equity capital ratio (%)..............................1999 8.37 10.68 9.24 9.09 7.87 7.71 8.60 8.02 8.84 8.53 10.29

 ................................................1997 8.33 10.81 9.62 9.16 7.58 7.33 8.87 8.35 9.06 8.65 9.82

 ................................................1995 8.11 10.42 9.39 8.57 7.19 7.61 8.23 8.30 8.70 8.52 8.53 

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 

Fourth Quarter 2000 5 FDIC-Insured Commercial Banks 
TABLE IV-A. Fourth Quarter 2000, FDIC-Insured Commercial Banks 

FOURTH 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 

8,315 4,842 3,078 313 82 665 1,425 1,791 2,144 1,384 906 

Total assets (in billions)............................................................................. $6,238.7 $231.2 $773.0 $884.1 $4,350.4 $2,181.0 $1,610.8 $1,071.9 $419.0 $302.3 $653.7 

Total deposits (in billions).............................................................................. 4,176.6 194.9 632.5 621.6 2,727.6 1,371.4 1,096.0 729.8 290.7 241.4 447.3 

Net income (in millions)......................................................................... 17,821.1 453.5 2,275.2 2,415.7 12,676.8 7,052.0 4,316.4 2,512.7 1,424.6 533.8 1,981.5 

% of unprofitable institutions........................................................................ 12.2 17.7 4.5 6.1 7.3 11.6 15.5 9.3 11.9 12.2 14.2 

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

Performance Ratios (annualized, %) 

55.8 52.3 61.0 57.5 58.5 62.1 55.2 56.1 51.0 57.2 60.7 

Yield on earning assets............................................................................. 8.46 8.62 8.69 8.67 8.36 8.29 8.32 8.38 8.95 8.53 9.17 

Cost of funding earning assets...................................................................... 4.56 4.15 4.25 4.43 4.67 4.75 4.45 4.72 4.48 4.09 4.21 

Net interest margin................................................................................. 3.90 4.47 4.44 4.24 3.69 3.54 3.86 3.65 4.47 4.44 4.97 

Noninterest income to earning assets................................................................ 2.97 1.27 1.80 2.47 3.40 4.02 2.42 1.89 2.89 1.45 3.61 

Noninterest expense to earning assets........................................................... 4.16 4.18 3.96 4.05 4.22 4.64 3.74 3.37 4.34 3.83 5.07 

Credit loss provision to assets........................................................... 0.62 0.35 0.41 0.72 0.65 0.48 0.56 0.62 0.69 0.92 1.05 

Net operating income to assets.......................................................... 1.13 0.80 1.19 1.12 1.14 1.30 1.00 0.94 1.37 0.70 1.24 

Return on assets................................................................................ 1.16 0.80 1.19 1.11 1.18 1.32 1.07 0.95 1.38 0.72 1.25 

Return on equity.................................................................................... 13.57 7.17 12.50 12.31 14.54 16.31 12.55 11.82 14.53 7.96 12.42 

Net charge-offs to loans and leases................................................................. 0.81 0.43 0.44 0.81 0.90 0.92 0.73 0.55 0.92 0.66 1.15 

Credit loss provision to net charge-offs........................................................... 123.91 130.29 140.89 138.47 119.32 97.80 116.69 166.66 108.88 229.48 139.01 

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

Structural Changes (QTR) 

58.63 71.89 62.51 58.16 57.45 59.65 57.41 59.19 57.02 63.18 56.77 

New charters................................................................................. 51 510 0 0 3 18 7 4 6 13 

Banks absorbed by mergers............................................................................. 109 45 55 8 1 6 23 26 16 22 16 

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

PRIOR FOURTH QUARTERS

 (The way it was...) 

2 2 0 0 0 0 0 1 0 0 1 

Return on assets (%)................................1999 1.27 0.85 1.31 1.42 1.25 1.21 1.29 1.25 1.44 0.98 1.51

 .................................................1997 1.24 0.99 1.26 1.55 1.16 1.13 1.06 1.37 1.57 1.17 1.47

 .................................................1995 

Net charge-offs to loans & leases (%)

1.12 1.05 1.20 1.27 1.04 0.96 1.18 1.09 1.42 1.22 1.35 

 .................................................1999 0.71 0.44 0.48 0.80 0.75 0.88 0.59 0.43 0.80 0.60 0.99

 .................................................1997 0.69 0.44 0.47 1.21 0.60 0.81 0.54 0.54 0.83 0.51 0.84

 .................................................1995 0.62 0.39 0.52 0.92 0.52 0.75 0.48 0.45 0.67 0.38 0.75 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 6 Fourth Quarter 2000 
TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

December 31, 2000 

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.......................................................... 1.26 1.42 1.03 0.97 1.42 1.22 1.44 1.37 1.00 1.17 0.86 

Construction and development.................................................................... 1.06 1.20 1.07 0.86 1.14 0.77 0.85 1.66 1.08 1.09 1.00 

Commercial real estate........................................................................... 0.74 1.08 0.70 0.74 0.72 0.81 0.64 0.88 0.83 0.89 0.54 

Multifamily residential real estate................................................................... 0.55 0.80 0.51 0.48 0.58 0.45 0.57 0.81 0.57 0.67 0.32 

Home equity loans................................................................ 0.98 0.75 0.69 1.04 1.02 0.76 0.78 1.40 0.81 0.88 1.09 

Other 1-4 Family residential...................................................................... 1.72 1.85 1.43 1.21 1.92 1.51 2.17 1.69 1.15 1.51 1.15 

Commercial and industrial loans*................................................................ 0.83 1.53 1.31 1.17 0.64 0.57 0.66 1.07 1.38 1.29 1.13 

Loans to individuals......................................................... 2.46 2.62 2.39 2.54 2.45 2.66 2.44 2.57 2.30 1.92 2.17 

Credit card loans.............................................................................. 2.66 1.87 3.79 2.90 2.57 3.03 2.97 1.39 2.43 1.44 2.12 

Other loans to individuals....................................................................... 2.32 2.65 2.14 2.33 2.33 2.27 2.26 2.74 2.14 1.94 2.27 

All other loans and leases (including farm)............................................................... 0.65 N/A N/A 1.03 0.66 0.65 0.48 0.92 0.65 0.49 0.55 

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

Percent of Loans Noncurrent** 

0.67 1.42 0.70 0.59 0.67 0.57 0.34 1.76 0.71 0.66 0.42 

All real estate loans...................................................................... 0.81 0.75 0.64 0.70 0.91 0.86 0.89 0.87 0.55 0.76 0.58 

Construction and development................................................................. 0.76 0.64 0.75 0.77 0.76 0.80 0.78 0.82 0.77 0.76 0.60 

Commercial real estate.......................................................................... 0.72 0.83 0.64 0.71 0.76 0.71 0.71 0.83 0.62 0.83 0.61 

Multifamily residential real estate................................................................ 0.44 0.34 0.40 0.38 0.48 0.25 0.57 0.50 0.42 0.23 0.51 

Home equity loans............................................................................... 0.37 0.26 0.31 0.38 0.38 0.30 0.22 0.65 0.29 0.33 0.33 

Other 1-4 Family residential........................................................ 0.90 0.71 0.60 0.72 1.05 0.85 1.12 0.97 0.46 0.70 0.53 

Commercial and industrial loans*............................................................ 1.67 1.21 1.20 1.39 1.73 1.74 1.87 1.44 1.22 1.48 1.69 

Loans to individuals.............................................................................. 1.40 0.87 0.87 1.15 1.56 2.09 0.98 0.72 1.16 0.58 1.27 

Credit card loans.............................................................................. 2.01 0.96 2.57 1.98 1.99 2.42 2.06 0.82 1.54 0.64 1.63 

Other loans to individuals......................................................................... 0.98 0.86 0.57 0.65 1.17 1.76 0.60 0.70 0.72 0.58 0.48 

All other loans and leases (including farm)................................................................ 0.69 N/A N/A 0.60 0.74 0.51 0.88 0.81 0.55 0.66 0.99 

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

Percent of Loans Charged-off (net) 

0.51 1.10 0.40 0.20 0.54 0.40 0.94 0.60 0.15 1.14 0.07 

All real estate loans................................................................................ 0.09 0.06 0.05 0.09 0.11 0.09 0.09 0.11 0.12 0.09 0.06 

Construction and development................................................................... 0.05 0.09 0.04 0.08 0.05 0.04 0.04 0.05 0.10 0.07 0.06 

Commercial real estate........................................................................ 0.05 0.07 0.04 0.05 0.06 0.03 0.05 0.10 0.03 0.08 0.02 

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

Home equity loans.......................................................................... 0.18 0.08 0.04 0.15 0.21 0.13 0.17 0.29 0.20 0.32 0.06 

Other 1-4 Family residential....................................................................... 0.10 0.06 0.06 0.12 0.11 0.09 0.10 0.10 0.19 0.09 0.10 

Commercial and industrial loans*.......................................................................... 0.77 0.47 0.54 0.84 0.77 0.68 0.83 0.56 0.65 0.82 1.40 

Loans to individuals............................................................................... 2.30 1.65 1.34 2.43 2.44 2.74 1.81 1.26 3.17 0.95 2.92 

Credit card loans........................................................................ 4.30 19.77 5.34 5.08 4.02 4.37 3.81 4.11 5.64 3.52 3.82 

Other loans to individuals......................................................................... 1.03 0.70 0.63 0.96 1.17 1.14 1.14 0.87 0.55 0.85 1.25 

All other loans and leases (including farm).................................................................... 0.23 N/A N/A 0.33 0.24 0.13 0.23 0.31 0.27 0.12 0.60 

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

Loans Outstanding (in billions) 

0.09 0.98 0.89 0.02 0.07 0.17 0.10 0.04 0.07 0.02 -0.01 

All real estate loans..................................................................................... $1,670.3 $81.6 $324.8 $308.5 $955.4 $360.0 $543.3 $347.0 $131.0 $91.4 $197.6 

Construction and development.................................................................... 162.1 6.9 35.5 37.0 82.7 16.9 60.4 32.0 13.8 12.1 26.8 

Commercial real estate........................................................................... 465.5 22.9 120.0 105.7 216.9 79.4 141.1 99.5 36.8 34.5 74.2 

Multifamily residential real estate........................................................................ 60.2 1.7 10.9 12.3 35.2 15.5 16.3 12.8 4.0 2.6 8.9 

Home equity loans.............................................................................. 127.5 2.0 13.8 19.3 92.3 27.0 43.1 34.4 7.5 1.9 13.5 

Other 1-4 Family residential........................................................................... 788.9 37.8 130.9 129.6 490.6 191.3 272.8 159.7 58.3 36.5 70.3 

Commercial and industrial loans...................................................................... 1,048.2 24.6 91.7 123.9 808.1 348.0 279.6 210.5 64.3 44.8 101.0 

Loans to individuals.................................................................... 609.7 19.1 62.0 98.2 430.4 229.1 129.6 79.1 52.4 32.3 87.1 

Credit card loans.......................................................... 249.4 0.7 9.3 36.8 202.5 116.6 33.7 10.1 28.0 1.3 59.8 

Other loans to individuals..................................................................... 360.3 18.4 52.6 61.4 227.9 112.5 95.9 69.1 24.4 31.0 27.4 

All other loans and leases (including farm)....................................................... 490.9 16.9 26.8 30.9 416.4 202.8 106.1 91.4 38.4 14.2 37.9 

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

Memo: Other Real Estate Owned (in millions) 

33.4 0.2 1.1 3.1 29.1 11.2 8.6 4.8 2.4 0.7 5.7 

All other real estate owned........................................................................... $2,904.6 $258.6 $679.6 $408.1 $1,558.3 $750.7 $966.3 $415.5 $236.6 $236.5 $298.9 

Construction and development...................................................... 216.6 19.8 101.1 41.7 53.9 40.7 93.8 22.8 16.2 20.8 22.4 

Commercial real estate........................................................................ 1,320.8 120.7 299.8 192.9 707.4 362.1 447.4 145.5 93.3 112.8 159.7 

Multifamily residential real estate.............................................................. 54.1 6.4 24.8 10.1 12.9 14.8 9.5 6.1 6.0 9.8 8.0 

1-4 Family residential.................................................................. 1,056.9 84.6 226.0 157.1 589.1 162.5 405.1 232.8 82.2 75.0 99.4 

Farmland.................................................................................. 85.3 27.1 27.6 5.2 25.4 1.6 10.6 8.3 39.0 18.0 7.8 

Other real estate owned in foreign offices............................................................ 170.8 0.0 0.2 1.1 169.5 169.1 0.0 0.0 0.0 0.0 1.7 

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

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

FDIC Quarterly Banking Profile 

Fourth Quarter 2000 7 FDIC-Insured Commercial Banks 
SAVINGS INSTITUTION PERFORMANCE—FOURTH QUARTER, 2000 

n Higher Loss Provisions, Lower Net Interest Margins Produce Decline In 

Full-Year Earnings 

n Fourth-Quarter Earnings Of $2.6 Billion Are 3 Percent Lower Than A Year Ago 

n Rising Securities Values Boost Capital In The Fourth Quarter 

n Noncurrent Real Estate Loan Rates Rise For First Time Since 1996 

FDIC-insured savings institutions reported 

earnings of $2.6 billion for the fourth quarter, up 

$49 million from the third quarter and $90 million (3 

percent) lower than a year ago. During the fourth 

quarter noninterest income fell $214 million, but 

this was mostly offset by gains on the sales of 

securities which rose $208 million. Growth in 

earning assets led to an improvement in net 

interest income of $84 million even though net 

interest margins were lower. The average return 

on assets (ROA) held steady from last quarter at 

0.86 percent, which was the lowest level since the 

fourth quarter of 1998. A year ago, fourth quarter 

ROA was 0.95 percent. Noninterest expenses 

were $497 million (8 percent) higher than in the 

fourth quarter of 1999 and provisions for loan 

losses were $144 million (34 percent) higher. 

Improvements in the gains on sales of securities, 

up $186 million, helped offset the rise in operating 

expenses from last year’s fourth quarter. Only 23 

percent of savings institutions reported an ROA of 

1.00 percent or better in the fourth quarter of 2000 

and almost 12 percent reported losses. 

Full-year earnings of $10.7 billion were just $126 

million lower than the record earnings of 1999, and 

mark the third year in a row that industry earnings 

have been over $10 billion. The average ROA was 

0.92 percent, down from 1.00 percent in 1999. 

Increased noninterest expenses, up $1.6 billion, 

negated improvements in noninterest income, 

which were also up $1.6 billion. Growth in earning 

assets boosted net interest income, which 

increased $596 million. For the full year, gains on 

the sales of securities were $650 million (45 

percent) lower than in 1999. Provisions for loan 

losses were $467 million (30 percent) higher in 

2000. Net charge-offs, at 0.20 percent of loans, 

were $349 million (29 percent) higher than in 1999, 

but provisions for loan losses exceeded these 

charges by over 30 percent in both years. 

QUARTERLY NET INCOME, 1996–2000 

$ Billions 

2.5 2.6 

0.0 

2.2 

2.4 2.4 

2.0 

2.3 2.6 2.8 3.0 

2.0 

2.7 2.8 2.9 2.7 2.5 2.6 

Securities and Other Gains/Losses, Net 

Net Operating Income 

2.9 2.7 

0.0 

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

1996 1997 1998 1999 2000 

An inverted yield curve continued to put downward 

pressure on thrifts’ net interest margins, but the 

decline in margins slowed during the fourth 

quarter. The cost of funding earning assets rose 4 

basis points, while the yield on earning assets rose 

just 2 basis points, resulting in a 2 basis point 

decline in net interest margins. The Northeast 

Region reported no change in margins and the 

West Region reported a 5 basis point improvement 

in margins. The middle regions of the country 

reported declines in margins because of sharply 

higher funding costs, up 8 to 14 basis points. 

Small thrifts, with less than $100 million in assets, 

mirrored the central portion of the country with their 

cost of funds rising 12 basis points, leading to a 

decline in their margins of 8 basis points. 

QUARTERLY NET INTEREST MARGINS, 

1996–2000 

Net Interest Margin (%) 

3.5 

3.0 

2.5 

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

1996 1997 1998 1999 2000 

Assets > $1 Billion 

Assets < $1 Billion 

2.81 

3.22 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 Fourth Quarter 2000 
Profitability declined at a majority of small savings 

institutions with assets of less than $100 million in 

the fourth quarter, compared to a year ago, but the 

average ROA for the group rose, thanks to higher 

earnings at a few specialized institutions. The 

average ROA was 0.67 percent for small savings 

institutions in the fourth quarter, up from 0.44 

percent in the fourth quarter of 1999. Higher 

noninterest income, primarily due to a few new 

thrifts, lifted profitability in the fourth quarter, but 

lower net interest margins and operating expenses 

limited the improvement. 

The full-year average ROA for small savings 

institutions with assets less than $100 million was 

0.56 percent, down from 0.62 percent in 1999. 

Operating efficiency worsened as operating 

expenses absorbed a larger portion of revenues. 

The efficiency ratio was 81.4 percent for 2000, 

compared with 76.8 percent in 1999. Noninterest 

expenses were 4.81 percent of earning assets, up 

from 3.45 percent in 1999. For the full year, the 

relative contribution from noninterest income was 

nearly double the level reported in 1999, reaching 

2.39 percent of earning assets. The emergence of 

a few specialty small thrifts that were part of large 

holding companies was responsible for much of 

this increase. Excluding these specialist which 

rank as the top 6 institutions by improvements in 

noninterest income, the remaining small 

institutions had an aggregate average ROA of 0.34 

percent for 2000, down from 0.53 percent in 1999. 

Thus the gap in profitability with the rest of the 

industry has widened during the year for most 

small savings institutions. Over 20 percent of 

small thrifts were unprofitable in the fourth quarter 

and 16 percent reported losses for the full year. 

Noncurrent loans—those loans past due by 90 

days or more or that are in nonaccrual status— 

increased $397 million (7 percent) during the fourth 

quarter. Noncurrent home mortgages accounted 

for 40 percent of this increase, rising $158 million. 

The noncurrent rate on home mortgages rose by 3 

basis points during the quarter, to 0.65 percent. 

About one-quarter of the increase in total 

noncurrent loans came from real estate 

construction and land loans, up $103 million. The 

noncurrent rate for these loans rose from 0.80 

percent to 1.07 percent during the quarter. The 

noncurrent rate for all real estate loans rose from 

0.62 percent to 0.66 percent, the first increase 

since 1996. The noncurrent rate for all loans rose 

for the second quarter in a row, to 0.71 percent 

from 0.67 percent. The previous increase in the 

noncurrent rate was caused by nonmortgage 

loans; in the fourth quarter mortgages joined the 

trend. A $78-million increase in loan loss reserves 

was not enough to prevent a decline in the 

coverage ratio—loan loss reserves to noncurrent 

loans—from $1.32 in reserves for each dollar of 

noncurrent loans to $1.24 at year end. 

COVERAGE RATIO* AND RESERVE LEVELS, 

1996–2000 

$ Billions Coverage Ratio (%) 

Noncurrent Loans ($) 

Loan-Loss Reserves ($) 

Coverage Ratio (%) 

150% 

100% 

$10 50% 

$0 0% 

1 2 341 2 341 2 341 2 341 2 34 

1996 1997 1998 1999 2000 

* Loan-loss reserves to noncurrent loans. 

Thrifts reported higher levels of delinquent loans, 

those 30-89 days past due, at the end of the fourth 

quarter. The delinquency rate on construction and 

land loans increased 20 basis points to 1.42 

percent and the delinquency rate on home 

mortgages rose 17 basis points to 1.01 percent. 

The percent of commercial & industrial loans that 

were delinquent rose 33 basis points to 1.59 

percent, and the delinquency rate on loans to 

individuals rose 19 basis points to 2.01 percent. 

The industry has not seen levels this high since the 

end of 1998, and while many of these loans may 

eventually return to current status, the increase in 

delinquencies may lead to higher noncurrent loan 

levels in future quarters. 

The thrift industry grew by $18.5 billion during the 

fourth quarter despite a small ($233-million) 

decline in home mortgages. Home equity loans 

rose by $1.4 billion during the fourth quarter and 

commercial real estate loans increased by $1.1 

billion. Commercial & industrial loans rose by $1.3 

FDIC Quarterly Banking Profile 

Fourth Quarter 2000 9 FDIC-Insured Savings Institutions 
billion and loans to individuals increased $2.1 

billion. Thrifts’ securities portfolios rose by $6.9 

billion during the fourth quarter partly due to 

appreciation in available-for-sale securities. 

Deposits grew faster during the fourth quarter (up 

$8.7 billion) than other borrowed funds (up $5.2 

billion). In spite of this recent increase, deposits 

contributed only 66 percent of all liabilities at the 

end of the year, the lowest level on record. 

Equity capital rose by $3.2 billion primarily due to 

the rise in the value of available-for-sale (AFS) 

securities during the fourth quarter. The aggregate 

unrealized loss on AFS securities amounted to 

$1.4 billion at the beginning of the fourth quarter, 

but improvements in securities markets, due to 

falling medium and long-term interest rates, 

caused the value of these securities to rise to an 

unrealized gain of $559 million, for a total 

improvement of $1.9 billion for the quarter. These 

gains helped lift equity capital to 8.47 percent of 

assets at year-end, up from 8.33 percent at the end 

of the third quarter. The core capital (leverage) 

ratio is not affected by changes in the value of 

securities and remained unchanged at 7.81 

percent of average assets. 

The number of thrifts in the industry fell below 

1,600 for the first time since 1935. At year-end 

2000 there were 1,590 thrifts reporting financial 

CAPITAL RATIOS, 1994–2000 

Ratio (%) 

18 

Total Risk-Based Capital 

16 

14 

12 Tier 1 Risk-Based Capital 

10 Equity to Assets 

8 

6 Core Capital (Leverage) 

4 

1 2 34 1 2 3 4 1 2 34 1 2 34 1 2 3 4 1 2 34 1 2 34 

1994 1995 1996 1997 1998 1999 2000 

results. During the fourth quarter 8 new institutions 

started operations and 2 noninsured institutions 

became FDIC-insured thrifts. Mergers reduced the 

count of charters by 29 as 20 institutions with $7.7 

billion in assets were absorbed by commercial 

banks and 9 institutions with $8.7 billion were 

absorbed by other thrifts. One institution 

voluntarily relinquished its charter and ceased 

operations during the fourth quarter. Beyond these 

changes, 3 thrifts with $705 million in assets 

converted to stock ownership from mutual 

ownership. Savings institutions considered “problem” cases due to examination ratings rose from 

15 to 18 at year-end. The assets of these 

“problem” institutions declined from $7.3 billion to 

$7.1 billion at year-end. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Fourth Quarter 2000 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

2000 1999 1998 1997 1996 1995 1994 

Return on assets (%)............................................................................................ 0.92 1.00 1.01 0.93 0.70 0.77 0.66 

Return on equity (%)............................................................................ 11.14 11.72 11.34 10.84 8.41 9.40 8.28 

Core capital (leverage) ratio (%)......................................................................... 7.81 7.86 7.85 7.95 7.76 7.80 7.65 

Noncurrent assets plus 

other real estate owned to assets (%)......................................................... 0.56 0.58 0.72 0.95 1.09 1.20 1.38 

Net charge-offs to loans (%)...................................................................... 0.20 0.17 0.22 0.25 0.32 0.34 0.51 

Asset growth rate (%)................................................................................... 6.41 5.57 6.06 -0.28 0.32 1.70 0.77 

Net interest margin..................................................................................... 2.96 3.10 3.10 3.23 3.22 3.09 3.34 

Net operating income growth (%).......................................................................... 3.55 16.61 7.68 19.98 -13.92 13.81 22.24 

Number of institutions reporting.............................................................. 1,590 1,641 1,689 1,780 1,926 2,030 2,152 

Percentage of unprofitable institutions (%)................................................................................... 8.36 8.29 5.27 4.10 12.05 5.86 6.97 

Number of problem institutions................................................................................... 18 13 15 12 35 49 71 

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

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

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

(dollar figures in millions) 

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

Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

2000 2000 1999 99:4-00:4 

1,590 1,612 1,641 -3.1 

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

CONDITION DATA

244,999 245,128 244,035 0.4 

 Total assets................................................................................................... $1,222,635 $1,204,148 $1,148,934 6.4

 Loans secured by real estate............................................................................................. 725,735 723,224 670,868 8.2 

1-4 Family Residential............................................................................... 574,341 574,574 532,680 7.8 

Multifamily residential property....................................................................... 56,797 56,150 55,595 2.2 

Commercial real estate................................................................. 59,765 58,669 53,495 11.7 

Construction, development, and land........................................................................................ 34,832 33,832 29,097 19.7

 Commercial & industrial loans.......................................................................................... 34,420 33,112 27,067 27.2

 Loans to individuals............................................................................... 65,286 63,172 59,179 10.3

 Other loans & leases.............................................................................. 6,036 5,630 4,780 26.3

 Less: Unearned income & contra accounts**.................................................................................. 199 202 205 -2.9

 Total loans & leases................................................................................................ 831,278 824,936 761,689 9.1

 Less: Reserve for losses.................................................................................. 7,324 7,248 6,908 6.0

 Net loans & leases............................................................................. 823,954 817,688 754,781 9.2

 Securities....................................................................................................................................... 283,684 276,754 291,451 -2.7

 Other real estate owned........................................................................................... 1,003 1,071 1,124 -10.8

 Goodwill and other intangibles............................................................................... 17,021 16,678 14,813 14.9

 All other assets................................................................................. 96,973 91,956 86,765 11.8 

Total liabilities and capital.................................................................... 1,222,635 1,204,148 1,148,934 6.4

 Deposits................................................................................................. 738,234 729,552 707,261 4.4

 Other borrowed funds..................................................................... 359,745 354,498 327,243 9.9

 Subordinated debt...................................................................... 3,123 2,848 3,019 3.4

 All other liabilities......................................................................... 17,975 16,896 16,440 9.3

 Equity capital.................................................................................... 103,558 100,354 94,971 9.0 

Loans and leases 30-89 days past due......................................................... 8,614 7,210 6,724 28.1 

Noncurrent loans and leases................................................................... 5,885 5,488 5,535 6.3 

Restructured loans and leases........................................................................ 1,393 1,521 1,680 -17.1 

Direct and indirect investments in real estate.............................................................. 621 641 642 -3.4 

Mortgage-backed securities................................................ 213,826 208,828 221,742 -3.57 

Earning assets................................................................................... 1,131,960 1,116,987 1,065,737 6.2 

FHLB Advances (Source: TFR and FHFB).................................................................... 261,495 247,512 231,465 13.0 

Unused loan commitments................................................................. 247,552 247,544 176,039 40.6 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

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

2000 1999 %Change 2000 1999 99:4-00:4 

$84,180 $74,240 13.4 $22,351 $19,612 14.0 

52,246 42,902 21.8 14,216 11,616 22.4

31,934 31,338 1.9 8,135 7,996 1.7 

2,030 1,563 29.9 569 425 33.9 

11,385 9,793 16.3 2,847 2,656 7.2 

25,588 24,013 6.6 6,736 6,239 8.0 

786 1,436 -45.3 326 140 132.6 

5,739 6,125 -6.3 1,419 1,452 -2.3 

-3 5 N/M 13 9 44.1

10,745 10,871 -1.2 2,596 2,686 -3.3 

1,544 1,195 29.2 483 336 43.8 

5,889 6,102 -3.5 1,460 2,117 -31.0

10,241 9,890 3.6 2,382 2,578 -7.6 

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

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

FDIC Quarterly Banking Profile 

Fourth Quarter 2000 11 FDIC-Insured Commercial Banks 
TABLE III-B. Full Year 2000, FDIC-Insured Savings Institutions 

FULL YEAR 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 

1,590 624 819 107 40 626 212 406 125 109 112 

Total assets (in billions).......................................................................... $1,222.6 $30.9 $245.5 $207.8 $738.4 $400.0 $86.1 $182.5 $42.9 $84.5 $426.7 

Total deposits (in billions)........................................................................ 738.2 24.0 185.1 139.9 389.3 273.6 58.3 123.8 27.2 47.5 207.9 

Net income (in millions).................................................................... 10,744.6 167.5 1,807.0 1,774.7 6,995.4 3,477.6 462.4 1,623.8 224.2 840.4 4,116.3 

% of unprofitable institutions................................................................... 8.4 16.0 3.5 2.8 2.5 5.6 12.7 9.4 12.0 6.4 9.8 

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

Performance ratios (%) 

58.4 55.1 60.6 58.9 62.5 62.1 55.2 56.9 54.4 53.2 58.0 

Yield on earning assets.................................................. 7.80 7.72 7.67 7.95 7.81 7.65 8.00 8.11 7.72 8.27 7.70 

Cost of funding earning assets.............................................................. 4.84 4.25 4.38 4.77 5.05 4.35 4.98 4.99 4.99 5.20 5.15 

Net interest margin............................................................... 2.96 3.47 3.28 3.18 2.77 3.31 3.01 3.13 2.73 3.07 2.56 

Noninterest income to earning assets.......................................................... 1.06 2.39 0.70 1.02 1.13 0.84 1.29 1.71 0.81 1.23 0.92 

Noninterest expense to earning assets................................................................. 2.37 4.81 2.70 2.59 2.09 2.56 3.08 2.97 2.31 2.56 1.78 

Credit loss provision to assets*.................................................................... 0.17 0.10 0.12 0.26 0.17 0.12 0.38 0.41 0.17 0.25 0.07 

Net operating income to assets........................................................... 0.88 0.53 0.72 0.82 0.97 0.88 0.50 0.84 0.62 1.01 0.98 

Return on assets.................................................................. 0.92 0.56 0.77 0.89 1.00 0.90 0.59 0.93 0.53 1.06 1.02 

Return on equity............................................................... 11.14 4.26 7.40 10.11 13.83 9.30 6.70 10.85 5.61 13.06 15.36 

Net charge-offs to loans and leases....................................................... 0.20 0.06 0.09 0.36 0.19 0.14 0.30 0.37 0.16 0.22 0.14 

Credit loss provision to net charge-offs*.................................................................... 131.47 241.15 190.64 107.48 133.63 138.75 176.21 145.57 143.13 161.87 76.05 

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

Condition Ratios (%) 

57.12 81.42 67.17 59.96 51.12 58.81 70.75 59.82 63.59 58.54 49.32 

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

Loss allowance to: 

92.58 93.84 93.92 92.77 92.03 92.29 93.58 91.09 92.78 92.47 93.29 

Loans and leases........................................................ 0.88 0.71 0.83 1.01 0.87 0.99 0.79 0.86 0.65 0.86 0.84 

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

Noncurrent assets plus 

124.44 87.93 127.13 95.92 139.36 135.57 114.92 100.39 87.64 81.62 154.65 

other real estate owned to assets........................................................ 0.56 0.65 0.53 0.89 0.48 0.54 0.62 0.75 0.71 0.84 0.42 

Noncurrent RE loans to RE loans............................................ 0.66 0.76 0.63 1.05 0.56 0.70 0.64 0.73 0.74 1.04 0.53 

Equity capital ratio............................................................. 8.47 13.10 10.53 8.95 7.46 10.03 8.49 8.61 9.35 7.99 6.96 

Core capital (leverage) ratio............................................................ 7.81 12.73 10.11 8.23 6.72 8.89 8.23 7.87 8.65 7.94 6.59 

Tier 1 risk-based capital ratio...................................................................................... 12.70 23.16 16.95 12.80 10.90 14.18 13.33 12.17 14.95 11.76 11.33 

Total risk-based capital ratio................................................................ 13.96 24.21 18.06 13.96 12.25 15.61 14.83 13.48 15.74 12.88 12.43 

Gross real estate assets to gross assets................................................ 76.51 69.05 71.27 73.33 79.46 70.10 72.30 72.76 78.09 64.64 87.17 

Gross 1-4 family mortgages to gross assets............................................ 46.69 49.75 46.43 38.99 48.81 41.70 45.68 53.06 50.72 32.33 51.28 

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

Structural Changes 

111.61 86.86 91.20 101.60 126.44 93.07 102.74 111.05 114.23 121.78 136.18 

New Charters........................................................................................ 31 29 2 0 0 14 4 5 5 0 3 

Thrifts absorbed by mergers...................................................................... 82 28 41 12 1 24 18 26 6 4 4 

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

PRIOR FULL YEARS**

 (The way it was...) 

1 1 0 0 0 0 1 0 0 0 0 

Number of institutions...............................1999 1,641 664 830 113 34 636 225 427 126 115 112

 ...............................................1997 1,780 765 858 122 35 687 253 462 134 118 126

 ...............................................1995 2,030 910 959 130 31 754 305 522 153 137 159 

Total assets (in billions).............................1999 $1,148.9 $33.7 $244.9 $230.3 $640.0 $383.9 $76.2 $188.2 $41.4 $76.3 $383.0

 ................................................1997 1,026.2 39.9 250.4 239.7 496.1 342.8 64.8 174.2 33.6 64.0 346.8

 ................................................1995 1,025.7 46.7 278.5 281.3 419.2 352.3 70.9 169.9 52.2 74.9 305.6 

Return on assets (%)................................1999 1.00 0.62 0.85 1.04 1.06 1.02 0.78 0.98 0.83 1.14 1.02

 ................................................1997 0.93 0.75 0.95 1.06 0.87 1.00 0.84 0.90 1.01 1.00 0.86

 ................................................1995 

Net charge-offs to loans & leases (%) 

0.77 0.67 0.80 0.84 0.72 0.88 0.87 0.85 0.98 1.05 0.51 

 ................................................1999 0.17 0.09 0.10 0.29 0.15 0.11 0.24 0.22 0.15 0.27 0.16

 ................................................1997 0.25 0.10 0.17 0.35 0.26 0.22 0.47 0.24 0.07 0.46 0.22

 ................................................1995 

Noncurrent assets plus 

0.34 0.14 0.17 0.38 0.45 0.39 0.14 0.14 0.18 0.23 0.47 

OREO to assets (%)***.....................1999 0.58 0.65 0.54 0.90 0.47 0.62 0.56 0.63 0.49 0.80 0.48

 ................................................1997 0.95 0.87 0.82 1.31 0.84 1.12 0.86 0.67 0.57 1.10 0.94

 .................................................1995 1.20 1.00 0.99 1.39 1.24 1.40 1.14 0.53 0.61 1.21 1.46 

Equity capital ratio (%)..............................1999 8.27 12.50 10.34 8.56 7.15 9.52 9.33 8.48 9.67 8.19 6.55

 ................................................1997 8.71 11.91 10.49 8.73 7.54 9.62 10.12 9.20 9.44 8.33 7.29

 ................................................1995 8.39 10.73 9.84 8.54 7.06 9.05 9.50 9.07 8.48 7.60 7.17 

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

** 1995 data do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 12 Fourth Quarter 2000 
TABLE IV-B. FOURTH Quarter 2000, FDIC-Insured Savings Institutions 

FOURTH QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,590 624 819 107 40 626 212 406 125 109 112 

Total assets (in billions)............................................................................. $1,222.6 $30.9 $245.5 $207.8 $738.4 $400.0 $86.1 $182.5 $42.9 $84.5 $426.7 

Total deposits (in billions).............................................................................. 738.2 24.0 185.1 139.9 389.3 273.6 58.3 123.8 27.2 47.5 207.9 

Net income (in millions)......................................................................... 2,596.4 51.3 416.6 404.3 1,724.2 814.1 107.0 379.8 11.9 227.1 1,056.6 

% of unprofitable institutions........................................................................ 11.7 20.0 6.6 5.6 2.5 8.9 17.5 13.8 13.6 9.2 8.9 

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

Performance Ratios (annualized, %) 

50.1 45.7 52.3 55.1 62.5 51.1 53.3 47.3 44.8 45.9 58.9 

Yield on earning assets............................................................................. 7.98 7.90 7.83 8.08 8.01 7.79 8.13 8.27 7.88 8.48 7.92 

Cost of funding earning assets...................................................................... 5.08 4.53 4.62 4.98 5.28 4.49 5.32 5.26 5.30 5.48 5.39 

Net interest margin................................................................................. 2.90 3.37 3.21 3.10 2.73 3.29 2.82 3.01 2.59 3.00 2.53 

Noninterest income to earning assets................................................................ 1.02 2.82 0.72 1.14 1.00 0.84 1.35 1.61 0.79 1.25 0.84 

Noninterest expense to earning assets........................................................... 2.41 5.06 2.81 2.75 2.06 2.70 3.18 3.07 2.58 2.54 1.65 

Credit loss provision to assets*........................................................... 0.19 0.14 0.14 0.24 0.19 0.14 0.40 0.42 0.24 0.21 0.08 

Net operating income to assets.......................................................... 0.79 0.58 0.62 0.74 0.87 0.79 0.37 0.64 0.31 1.03 0.94 

Return on assets................................................................................ 0.86 0.67 0.69 0.79 0.94 0.82 0.51 0.84 0.11 1.10 1.00 

Return on equity.................................................................................... 10.23 5.13 6.54 8.86 12.81 8.26 5.95 9.80 1.19 13.64 14.70 

Net charge-offs to loans and leases................................................................. 0.23 0.09 0.11 0.39 0.24 0.17 0.39 0.46 0.17 0.21 0.16 

Credit loss provision to net charge-offs*........................................................... 117.92 219.88 183.54 90.76 118.72 127.82 146.66 119.65 189.08 149.59 73.78 

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

Structural Changes (QTR) 

59.24 80.88 70.42 63.03 52.50 62.09 75.70 64.75 74.58 58.68 47.29 

New charters................................................................................. 8 8 0 0 0 2 2 3 1 0 0 

Thrifts absorbed by mergers............................................................................. 29 5 19 5 0 8 6 9 3 1 2 

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

PRIOR FOURTH QUARTERS**

 (The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%)................................1999 0.95 0.44 0.72 1.02 1.04 1.05 0.59 0.80 0.87 1.06 0.98

 .................................................1997 0.93 0.59 0.89 1.12 0.89 1.00 0.64 0.65 0.98 1.35 0.97

 .................................................1995 

Net charge-offs to loans & leases (%)

0.71 0.66 0.81 0.76 0.61 0.83 0.84 0.64 0.79 1.37 0.41 

 .................................................1999 0.18 0.10 0.13 0.31 0.16 0.14 0.27 0.18 0.14 0.43 0.15

 .................................................1997 0.25 0.08 0.22 0.38 0.21 0.23 0.47 0.24 0.12 0.68 0.16

 .................................................1995 0.34 0.13 0.21 0.39 0.42 0.41 0.12 0.14 0.17 0.30 0.45 

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

** 1995 data do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 

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

Rhode Island, Vermont, U.S. Virgin Islands

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

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

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

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

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

FDIC Quarterly Banking Profile 

Fourth Quarter 2000 13 FDIC-Insured Savings Institutions 
TABLE V-B. Loan Performance, FDIC-Insured Savings Institutions 

December 31, 2000 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.......................................................... 0.93 1.85 1.08 1.01 0.81 0.83 1.08 1.06 1.84 1.20 0.79 

Construction, development, and land.................................................................... 1.42 1.97 1.37 1.71 1.23 1.00 1.21 1.78 4.00 1.39 0.97 

Commercial real estate........................................................................... 0.70 1.38 0.83 0.86 0.39 0.56 1.39 0.97 1.75 0.70 0.38 

Multifamily residential real estate................................................................... 0.29 0.98 0.38 0.53 0.15 0.20 2.43 0.65 0.41 0.68 0.17 

Home equity loans................................................................ 0.45 0.63 0.61 0.38 0.40 0.60 0.24 0.61 0.45 0.01 0.23 

Other 1-4 Family residential...................................................................... 1.01 1.97 1.18 1.07 0.90 0.95 1.05 1.07 1.75 1.30 0.91 

Commercial and industrial loans................................................................ 1.59 2.13 1.66 1.73 1.43 1.18 1.86 2.63 2.00 1.28 2.04 

Loans to individuals......................................................... 2.01 2.56 1.77 1.79 2.11 2.01 3.05 1.99 1.71 0.86 2.59 

Credit card loans.............................................................................. 1.80 0.63 1.79 3.90 1.62 1.78 3.84 2.33 2.48 0.67 1.83 

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

Percent of Loans Noncurrent* 

2.08 2.69 1.76 1.51 2.38 2.05 2.89 1.78 1.67 1.04 2.70 

All real estate loans...................................................................... 0.66 0.76 0.63 1.05 0.56 0.70 0.64 0.73 0.74 1.04 0.53 

Construction, development, and land.................................................................... 1.07 1.13 1.12 1.37 0.86 0.69 1.18 1.60 3.03 0.21 1.45 

Commercial real estate.......................................................................... 0.86 0.79 0.78 1.43 0.48 1.00 0.83 0.99 0.82 0.90 0.47 

Multifamily residential real estate................................................................ 0.27 0.61 0.35 0.54 0.13 0.31 0.25 0.34 0.16 2.59 0.09 

Home equity loans............................................................................... 0.18 0.12 0.19 0.24 0.16 0.22 0.13 0.27 0.07 0.02 0.09 

Other 1-4 Family residential........................................................ 0.67 0.76 0.61 1.05 0.60 0.71 0.59 0.72 0.55 1.23 0.58 

Commercial and industrial loans............................................................ 1.57 1.84 1.19 1.65 1.63 1.32 1.33 1.92 1.46 2.80 1.25 

Loans to individuals.............................................................................. 0.82 0.90 0.54 0.69 0.92 0.64 0.75 1.55 0.44 0.48 0.43 

Credit card loans.............................................................................. 1.55 0.28 0.74 1.62 1.58 1.40 1.55 2.45 0.97 0.71 0.76 

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

Percent of Loans Charged-off 

0.57 0.95 0.53 0.57 0.57 0.51 0.59 1.01 0.41 0.26 0.39 

All real estate loans................................................................................ 0.04 0.02 0.03 0.07 0.03 0.03 0.04 0.06 0.05 0.04 0.03 

Construction, development, and land.................................................................... 0.07 0.04 0.12 0.09 0.03 0.00 0.06 0.21 0.03 0.02 0.12 

Commercial real estate........................................................................ 0.02 -0.01 0.04 0.07 -0.04 0.02 0.02 0.05 0.06 0.01 0.00 

Multifamily residential real estate................................................. -0.03 0.01 0.01 -0.01 -0.04 0.01 -0.01 0.04 0.00 0.06 -0.07 

Home equity loans.......................................................................... 0.10 0.07 0.05 0.08 0.12 0.12 0.11 0.06 0.12 0.12 0.08 

Other 1-4 Family residential....................................................................... 0.04 0.01 0.02 0.08 0.04 0.03 0.04 0.05 0.05 0.04 0.05 

Commercial and industrial loans.......................................................................... 0.84 0.16 0.60 1.41 0.68 0.54 2.65 0.97 2.08 0.20 0.82 

Loans to individuals............................................................................... 1.70 0.55 0.66 2.74 1.71 1.00 1.22 2.53 0.76 0.99 3.25 

Credit card loans........................................................................ 3.96 0.70 2.97 14.26 3.14 2.95 3.82 4.40 5.30 1.62 13.04 

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

Loans Outstanding (in billions) 

0.90 0.54 0.54 1.35 0.88 0.66 0.76 1.30 0.52 0.46 1.51 

All real estate loans..................................................................................... $725.7 $18.8 $152.4 $121.7 $432.8 $218.8 $49.5 $115.7 $28.0 $43.4 $270.3 

Construction, development, and land.................................................................... 34.8 1.1 9.1 9.5 15.3 6.9 5.0 5.3 2.1 8.6 6.8 

Commercial real estate........................................................................... 59.5 1.7 19.8 16.9 21.0 27.9 3.9 7.3 3.0 5.3 12.1 

Multifamily residential real estate........................................................................ 56.8 0.5 8.7 13.7 33.9 16.0 1.0 5.6 1.0 2.0 31.2 

Home equity loans.............................................................................. 23.1 0.5 5.6 4.0 13.1 8.2 2.2 5.8 0.6 0.8 5.6 

Other 1-4 Family residential........................................................................... 551.2 15.0 109.1 77.6 349.5 159.8 37.3 91.7 21.2 26.7 214.5 

Commercial and industrial loans...................................................................... 34.4 0.7 7.0 8.8 17.9 16.6 3.2 4.4 1.1 4.1 5.0 

Loans to individuals.................................................................... 65.3 1.5 10.3 11.8 41.7 19.5 7.4 16.5 2.1 10.6 9.3 

Credit card loans.......................................................... 16.6 0.1 0.5 1.4 14.6 2.8 1.2 6.2 0.1 5.1 1.2 

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

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

48.7 1.4 9.7 10.5 27.1 16.8 6.1 10.3 2.0 5.5 8.1 

All other real estate owned........................................................................... $1,003.3 $30.4 $193.8 $336.2 $442.9 $295.1 $115.7 $172.5 $74.8 $91.8 $253.5 

Construction, development, and land.................................................................... 153.4 3.4 33.6 31.4 85.0 12.0 64.9 13.8 22.9 11.3 28.5 

Commercial real estate........................................................................ 239.7 5.0 49.0 143.0 42.7 112.4 12.8 25.8 28.3 31.3 29.1 

Multifamily residential real estate.............................................................. 37.5 0.3 10.2 18.0 9.1 7.0 0.1 9.1 0.0 11.1 10.2 

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

Troubled Real Estate Asset Rates*** 

(% of total RE assets) 

589.2 22.0 105.0 150.5 311.8 169.8 39.1 124.7 25.8 39.3 190.4 

All real estate loans.............................................................................. 0.80 0.92 0.76 1.32 0.66 0.83 0.88 0.88 1.00 1.25 0.62 

Construction, development, and land.................................................................... 1.50 1.45 1.48 1.69 1.40 0.86 2.44 1.85 4.06 0.34 1.86 

Commercial real estate............................................................... 1.27 1.08 1.02 2.29 0.68 1.39 1.15 1.33 1.75 1.57 0.72 

Multifamily residential real estate........................................................... 0.33 0.67 0.46 0.67 0.16 0.35 0.26 0.50 0.16 3.13 0.12 

1-4 family residential............................................................................... 0.75 0.88 0.68 1.20 0.67 0.79 0.67 0.82 0.65 1.34 0.65 

* 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 Fourth Quarter 2000 
ALL FDIC-INSURED INSTITUTIONS 

n FDIC-Insured Deposits Surpass $3 Trillion in 2000 

n Insured-Deposit Growth Rate For 2000 Is Highest Since 1986 

n One Fourth-Quarter Failure Brings Annual Total To Seven 

Deposits insured by the FDIC moved past the $3 

trillion level in 2000, to $3.05 trillion, despite the 

number of insured institutions (including IBAs) 

falling below the 10,000 mark for the first time. 

Insured deposits rose by 1.5 percent in the final 

three months of 2000, bringing the growth rate for 

the full year to 6.5 percent. This is the highest 

annual growth rate for federally insured deposits 

since 1986, when deposits insured by the FDIC and 

the Federal Savings and Loan Insurance 

Corporation (FSLIC) increased by 8 percent. 

Insured deposits reported by the 9,924 FDIC 

member institutions rose by $185 billion in 2000, 

including a $73-billion increase (81 percent) in 

insured brokered deposits. About half of this latter 

amount was attributable to two insured banks 

whose brokerage affiliate sweeps cash 

management account balances into FDIC-insured 

bank accounts. 

Deposits insured by the Bank Insurance Fund (BIF) 

grew rapidly both in the fourth quarter (1.4 percent) 

and for the full year (7 percent), reaching $2.3 

trillion by year-end. This was the highest annual 

growth rate for BIF-insured deposits since 1989. 

The BIF balance was $31 billion (unaudited) at 

year-end 2000, or 1.35 percent of estimated insured 

deposits. The fund was bolstered during the year 

by reductions in reserves previously set aside for 

estimated failure costs. As of year-end 1999, the 

fund’s reserve ratio was 1.37 percent. 

The reserve ratio of the Savings Association 

Insurance Fund (SAIF) was 1.44 percent at yearend 2000, up from 1.43 percent at year-end 1999, 

adjusted to reflect subsequent reporting 

amendments to insured deposits. The balance of 

the SAIF was $10.9 billion (unaudited) on 

December 31, 2000. SAIF-insured deposits were 

$753 billion on this date, having grown 1.7 percent 

during the fourth quarter and 4.9 percent for the 

year. The annual growth rate was the highest since 

the inception of the SAIF in 1989. 

Despite the relatively rapid growth of insured 

deposits, insured institutions continued to rely 

increasingly on other funding alternatives. 

Measured as a percentage of domestic liabilities, 

insured deposits continued a steady, nine-year 

decline, falling to 51.7 percent at the end of 2000, 

compared to 52.6 percent a year earlier and 70 

percent in 1992. At year-end 2000, the ratio was 

46.4 percent for institutions with total assets greater 

than $1 billion, and 74 percent for smaller 

institutions. 

Only one FDIC-insured institution failed during the 

fourth quarter, a BIF member with total assets of 

$93 million. For all of 2000, the seven failures 

included six BIF members, with total assets of $378 

million, and one SAIF member, with total assets of 

$30 million. Losses for the seven failures are 

estimated at $40 million. In 1999, there were eight 

insured-institution failures, with total assets of $1.5 

billion and estimated losses of $839 million. 

PERCENTAGE CHANGE IN INSURED DEPOSITS, 

1990–2000 

Percent Change 

0.0 

-6.0 -6.5 -6.0 

-4.7 

-0.5 

2.7 

-3.9 

1.0 

2.7 

1.2 

4.9 

3.0 

1.5 

-0.6 

-2.0 

-0.6 

3.0 2.8 2.4 

4.2 

0.5 

7.0 

Bank Insurance Fund 

(BIF) 

Savings Association 

Insurance Fund (SAIF) 

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 

FDIC Quarterly Banking Profile 

Fourth Quarter 2000 15 All FDIC-Insured Institutions 
 

 

 

 

 

 

 

 

 

 

 

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

(dollar figures in millions) 2000 1999 1998 1997 1996 1995 1994 

Number of institutions reporting............................................................................................ 9,905 10,221 10,463 10,922 11,453 11,970 12,603 

Total assets............................................................................ $ 7,461,347 $6,883,696 $6,530,947 $6,041,127 $5,607,333 $5,338,419 $5,019,086 

Total deposits......................................................................... 4,914,809 4,538,088 4,386,298 4,125,862 3,925,059 3,769,481 3,611,619 

Number of problem institutions................................................................................... 94 79 84 92 117 193 318 

Assets of problem institutions (in billions)..................................................................... $24 $10 $11 $6 $12 $31 $73 

Number of failed/assisted institutions.......................................................................... 7 8 3 1 6 8 15 

Assets of failed/assisted institutions (in billions)..................................................................... $0.44 $1.56 $0.37 $0.03 $0.22 $1.21 $1.57 

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

(dollar figures in millions) 

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

Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

2000 2000 1999 99:4-00:4 

9,905 9,988 10,221 -3.1 

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

CONDITION DATA 

1,907,334 1,900,057 1,901,570 0.3 

Total assets................................................................................................... $7,461,347 $7,268,221 $6,883,696 8.4

 Loans secured by real estate............................................................................................. 2,396,013 2,382,612 2,180,903 9.9 

1-4 Family residential.......................................................................................... 1,490,725 1,495,128 1,371,879 8.7 

Home equity loans.................................................................. 150,629 144,639 121,333 24.1 

Multifamily residential property.................................................... 116,975 116,209 108,729 7.6 

Commercial real estate........................................................... 524,971 514,458 470,863 11.5 

Construction, development, and land............................................ 196,963 191,107 164,723 19.6 

Other real estate loans............................................................... 66,380 65,710 64,709 2.6 

Commercial & industrial loans 1,082,668 1,077,417 998,053 8.5

 Loans to individuals............................................................................... 674,999 647,466 617,530 9.3

 Credit cards & related plans................................................................................ 265,939 244,980 227,348 17.0

 Other loans & leases.............................................................................. 496,904 497,794 460,363 7.9

 Less: Unearned income & contra accounts.................................................................................. 3,114 3,248 3,876 -19.7

 Total loans & leases................................................................................................ 4,647,469 4,602,040 4,252,974 9.3

 Less: Reserve for losses.................................................................................. 71,378 69,788 65,678 8.7 

Net loans and leases............................................................................. 4,576,091 4,532,252 4,187,296 9.3 

Securities....................................................................................................................................... 1,361,352 1,337,922 1,337,794 1.8 

Other real estate owned........................................................................................... 3,908 3,891 3,920 -0.3 

Goodwill and other intangibles............................................................................... 119,724 121,189 112,855 6.1 

All other assets................................................................................. 1,400,272 1,272,967 1,241,830 12.8 

Total liabilities and capital.................................................................... 7,461,347 7,268,221 6,883,696 8.4

 Deposits....................................................................... 4,914,809 4,749,150 4,538,088 8.3

 Other borrowed funds..................................................................... 1,466,977 1,481,834 1,376,071 6.6

 Subordinated debt...................................................................... 90,166 87,359 79,469 13.5

 All other liabilities......................................................................... 356,256 328,347 315,375 13.0

 Equity capital.................................................................................... 633,140 621,531 574,693 10.2 

Loans and leases 30-89 days past due......................................................... 56,550 50,411 46,424 21.8 

Noncurrent loans and leases................................................................... 48,796 44,339 38,531 26.6 

Restructured loans and leases........................................................................ 2,704 3,269 2,826 -4.3 

Direct and indirect investments in real estate.............................................................. 914 958 921 -0.8 

Mortgage-backed securities.................................................................................. 684,294 657,795 676,205 1.2 

Earning assets................................................................................... 6,507,648 6,371,607 6,013,210 8.2 

FHLB Advances (Source: TFR and FHFB)................................................................................... 436,236 422,515 386,872 12.8 

Unused loan commitments................................................................. 4,713,261 4,578,217 4,150,111 13.6 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

261,495 247,512 231,465 

Preliminary Preliminary 

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

2000 1999 %Change 2000 1999 99:4-00:4 

$512,166 $441,561 16.0 $134,753 $116,791 15.4 

276,441 218,031 26.8 74,787 59,551 25.6

235,724 223,530 5.5 59,965 57,240 4.8 

31,284 23,377 33.8 10,060 6,558 53.4 

164,136 154,193 6.4 42,275 41,442 2.0 

241,340 228,209 5.8 61,999 61,018 1.6 

-1,499 1,617 N/M 522 -135 N/M 

43,783 45,502 -3.8 10,254 10,767 -4.8 

-33 174 N/M -32 211 N/M

81,920 82,426 -0.6 20,418 20,416 0.0 

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

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 16 Fourth Quarter 2000 
 

TABLE III-C. Selected Insurance Fund Indicators* 

(dollar figures in millions) 

Bank Insurance Fund 

Reserve ratio (%)..................................................................................... 

Fund balance (unaudited)............................................................................ 

Estimated insured deposits...................................................................... 

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

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

Assessment base................................................................................ 

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

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

Savings Association Insurance Fund 

Reserve ratio (%)..................................................................................... 

Fund balance (unaudited)............................................................................ 

Estimated insured deposits...................................................................... 

BIF-member Oakars.......................................................................................... 

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

Other SAIF members........................................................................... 

Assessment base................................................................................ 

BIF-member Oakars.......................................................................................... 

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

Other SAIF members........................................................................... 

Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

2000 2000 1999 99:4-00:4 

1.35 1.35 1.37 -1.5 

$30,983 $30,555 $29,414 4.7 

2,301,604 2,269,166 2,151,454 7.0 

58,506 57,357 43,856 33.4 

2,243,097 2,211,808 2,107,598 6.4 

3,326,745 3,186,328 3,031,237 9.7 

59,459 58,329 44,904 32.4 

3,267,286 3,127,999 2,986,334 9.4 

1.44 1.45 1,43 1.0 

$10,858 $10,706 $10,281 5.6 

752,756 740,165 717,591 4.9 

308,771 291,811 269,218 14.7 

67,204 73,294 70,442 -4.6 

376,782 375,060 377,932 -0.3 

822,610 806,573 771,274 6.7 

309,590 292,237 269,807 14.7 

82,970 87,042 81,263 2.1 

430,050 427,294 420,205 2.3 

Insurance Fund Reserve Ratios* Fund Balances and Insured Deposits* 

Percent of Insured Deposits ($Millions) 

1.25 

0 

1.15 

1.30 1.34 1.38 1.39 1.35 1.34 1.35 1.35 

0.28 

0.47 

1.36 1.37 

1.43 1.44 1.45 1.44 

1.37 

1.31 

1.44 

BIF 

SAIF 

Target Ratio 

BIF BIF-Insured SAIF SAIF-Insured 

Balance Deposits Balance Deposits 

12/94 21,848 1,895,258 1,937 693,610 

12/95 25,454 1,951,693 3,358 711,897 

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 2,196,283 10,435 723,534 

6/00 29,780 2,222,349 10,538 737,962 

9/00 30,555 2,269,166 10,706 740,165 

12/00 30,983 2,301,604 10,858 752,756 

12/94 12/95 12/96 12/97 12/98 12/99 3/00 6/00 9/00 12/00 

* 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. 

TABLE IV-C. Closed/Assisted Institutions 

(dollar figures in millions) 

BIF Members 

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

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

SAIF Members 

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

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

2000 1999 1998 1997 1996 1995 1994 

6 

$378 

7 

$1,490 

3 

$371 

1 

$27 

5 

$186 

6 

$758 

13 

$1,432 

1 

$30 

1 

$71 

0 

$0 

0 

$0 

1 

$34 

2 

$456 

2 

$137 

FDIC Quarterly Banking Profile 

Fourth Quarter 2000 17 All FDIC-Insured Institutions 
 

 

 

 

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

(dollar figures in millions) 2000 1999 1998 1997 1996 1995 1994 

BIF Members 

Number of institutions reporting................................................................................. 8,572 8,834 9,031 9,404 9,823 10,243 10,760 

BIF-member Oakars................................................................................................ 757 744 745 778 793 807 719 

Other BIF-members................................................................................................. 7,815 8,090 8,286 8,626 9,030 9,436 10,041 

Total assets......................................................................................................... $ 6,508,960 $5,980,164 $5,702,769 $5,285,403 $4,857,761 $4,577,898 $4,248,300 

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

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

Return on assets (%)............................................................................................. 

Return on equity (%)............................................................................................... 

Noncurrent assets plus OREO to assets (%)................................................................ 

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

Assets of problem institutions................................................................... 

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

Assets of failed/assisted institutions................................................................... 

SAIF Members 

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

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

Other SAIF-members................................................................................................. 

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

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

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

Return on assets (%)............................................................................................. 

Return on equity (%)............................................................................................... 

Noncurrent assets plus OREO to assets (%)................................................................ 

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

Assets of problem institutions................................................................... 

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

Assets of failed/assisted institutions................................................................... 

4,337,722 3,987,385 3,843,816 3,611,453 3,404,204 3,225,650 3,062,718 

73,864 73,977 64,334 61,459 54,483 50,780 46,882 

1.19 1.30 1.18 1.22 1.17 1.15 1.14 

13.94 15.11 13.81 14.44 14.14 14.32 14.43 

0.72 0.62 0.64 0.67 0.77 0.89 1.06 

74 66 68 73 86 151 264 

$10,787 $4,450 $5,326 $4,598 $6,624 $20,166 $42,311 

6 7 3 1 5 6 13 

$378 $1,490 $371 $27 $182 $753 $1,392 

1,333 1,387 1,432 1,518 1,629 1,727 1,843 

124 123 116 112 94 77 55 

1,209 1,264 1,316 1,406 1,535 1,650 1,788 

$952,387 $903,531 $828,177 $755,724 $749,573 $760,521 $770,785 

577,087 550,703 542,481 514,409 520,855 543,831 548,901 

8,056 8,450 7,598 6,486 4,892 5,584 4,102 

0.89 0.99 0.98 0.94 0.67 0.76 0.56 

11.09 11.97 11.34 11.13 8.08 9.47 7.16 

0.65 0.64 0.80 0.98 1.07 1.12 1.23 

20 13 16 19 31 42 54 

$13,053 $5,524 $5,992 $1,662 $5,548 $10,864 $30,336 

1 1 0 0 1 2 2 

$30 $71 $0 $0 $35 $426 $129 

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

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

(dollar figures in millions) 

December 31, 2000 

Commercial Banks and Savings Institutions 

Number of Total Domestic 

Institutions Assets Deposits* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks............................................................................... 8,315 6,238,713 3,469,908 2,086,796 311,627 2,398,423 

BIF-member......................................................................................................... 8,212 6,151,000 3,407,720 2,071,604 278,245 2,349,849 

SAIF-member..................................................................................................... 103 87,713 62,188 15,192 33,382 48,573 

FDIC-Supervised..................................................................................................... 5,093 1,179,489 872,733 584,013 74,306 658,319 

OCC-Supervised..................................................................................................... 2,231 3,414,579 1,827,210 1,092,752 167,703 1,260,456 

Federal Reserve-Supervised.................................................................................. 991 1,644,645 769,966 410,031 69,617 479,648 

FDIC-Insured Savings Institutions................................................................................. 1,590 1,222,635 738,234 213,372 441,129 654,501 

OTS-Supervised Savings Institutions......................................................................... 1,067 933,972 538,115 88,205 388,698 476,903 

BIF-member........................................................................................................ 39 127,440 64,511 47,758 11,917 59,675 

SAIF-member......................................................................................................... 1,028 806,532 473,603 40,447 376,782 417,229 

FDIC-Supervised State Savings Banks................................................................................ 523 288,663 200,119 125,167 52,431 177,598 

BIF-member......................................................................................................... 321 230,521 158,939 122,299 18,609 140,908 

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

Total Commercial Banks and 

202 58,142 41,180 2,868 33,822 36,690 

Savings Institutions............................................................................................. 9,905 7,461,347 4,208,143 2,300,168 752,756 3,052,924 

BIF-member........................................................................................................ 8,572 6,508,960 3,631,171 2,241,661 308,771 2,550,432 

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

Other FDIC-Insured Institutions 

1,333 952,387 576,972 58,506 443,986 502,492 

U.S. Branches of Foreign Banks................................................................................ 19 8,753 3,801 1,436 0 1,436 

Total FDIC-Insured Institutions...................................................................................... 9,924 7,470,101 4,211,943 2,301,604 752,756 3,054,360 

* Excludes $707 billion in foreign office deposits, which are uninsured. 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 18 Fourth Quarter 2000 
TABLE VII-C. Assessment Base Distribution and Rate Schedules 

BIF Assessment Base Distribution 

Assessable Deposits in Millions as of December 31, 2000 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2001 

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

7,965 

$3,230,062 

157 

$26,998 

3 

$493 

92.7 

97.1 

1.8 

0.8 

0.0 

0.0 

383 4.5 

$58,703 1.8 

15 0.2 

$3,038 0.1 

2 0.0 

$221 0.0 

55 

$6,526 

7 

$564 

4 

$141 

0.6 

0.2 

0.1 

0.0 

0.0 

0.0 

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

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

by on-site examinations. 

SAIF Assessment Base Distribution 

Assessable Deposits in Millions as of December 31, 2000 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2001 

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

1,184 

$777,245 

15 

$4,497 

1 

$11 

88.8 

94.5 

1.1 

0.5 

0.1 

0.0 

102 7.7 

$26,900 3.3 

10 0.8 

$2,339 0.3 

0 0.0 

$0 0.0 

15 

$7,299 

4 

$3,951 

2 

$368 

1.1 

0.9 

0.3 

0.5 

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 2001 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 

Fourth Quarter 2000 19 All FDIC-Insured Institutions 
NUMBER OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1992–2000 

Number of Institutions 

572 

318 

193 

117 92 84 82 88 84 80 76 80 79 87 89 90 94 

12/92 12/93 12/94 12/95 12/96 12/97 3/98 6/98 9/98 12/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 12/00 

Savings Institutions 

Commercial Banks 

1,063 

Savings Institutions 276 146 49 71 35 21 16 18 18 15 16 14 11 13 15 16 15 18 

Commercial Banks 787 426 144 247 82 71 68 64 70 69 64 62 69 66 72 73 75 76 

ASSETS OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1992–2000 

$ Billions 

592 

334 

72 

31 12 7 7 8 8 11 10 9 8 10 10 19 19 24 

12/92 12/93 12/94 12/95 12/96 12/97 3/98 6/98 9/98 12/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 12/00 

Savings Institutions 

Commercial Banks 

Savings Institutions 184 92 39 14 7 2 2 3 3 6 5 4 4 6 5 8 7 7 

Commercial Banks 408 242 33 17 5 5 5 5 5 5 5 5 4 4 5 11 12 17 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 20 Fourth Quarter 2000 
NOTES TO USERS 

This publication contains financial data and other information 

for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding the 

comparability of source data and reporting differences over 

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

FDIC-Insured Commercial Banks 

(Tables I-A through V-A.) 

This section covers commercial banks insured by the FDIC 

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

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

the three federal commercial bank regulators (the Board of 

Governors of the Federal Reserve System, the FDIC or the 

Office of the Comptroller of the Currency). 

FDIC-Insured Savings Institutions 

(Tables I-B through V-B.) 

This section covers savings institutions insured by either BIF 

or SAIF that operate under state or federal banking codes 

applicable to thrift institutions, except for one self-liquidating 

institution primarily funded by the FSLIC Resolution Fund 

(FRF). Savings institutions in Resolution Trust Corporation 

conservatorships are also excluded from these tables while 

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

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

Office of Thrift Supervision (OTS). 

FDIC-Insured Institutions by Insurance Fund 

(Tables I-C through VII-C.) 

Summary balance-sheet and earnings data are provided for 

commercial banks and savings institutions according to 

insurance fund membership. BIF-member institutions may 

acquire SAIF-insured deposits, resulting in institutions with 

some deposits covered by both insurance funds. Also, SAIF 

members may acquire BIF-insured deposits. The insurance 

fund membership does not necessarily reflect which fund 

insures the largest percentage of an institution’s deposits. 

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

each include deposits from both insurance funds. Depository 

institutions that are not insured by the FDIC through either 

the BIF or SAIF are not included in the FDIC Quarterly 

Banking Profile. U.S. branches of institutions headquartered 

in foreign countries and non-deposit trust companies are not 

included unless otherwise indicated. Efforts are made to 

obtain financial reports for all active institutions. However, in 

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

DATA SOURCES 

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Call Reports and the OTS 

Thrift Financial Reports submitted by all FDIC-insured 

depository institutions. This information is stored on and 

retrieved from the FDIC’s Research Information System 

(RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting 

and accounting requirements of the FFIEC Call Reports. 

Beginning in March 1997, both Thrift Financial Reports and 

Call Reports are completed on a fully consolidated basis. 

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

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

subsidiary institution reports are included in the Quarterly 

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

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

All asset and liability figures used in calculating performance 

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

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

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

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

rates represent the percentage change over a 12-month 

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

institutions in the current period. 

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

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

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

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

ACCOUNTING CHANGES 

Adoption of GAAP Reporting — Effective with the March 

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

New reporting instructions for 1997 and 1998 changed the 

amounts reported for a number of items used in the 

Quarterly Banking Profile, so that comparability with prior 

periods may be affected. Among the items most significantly 

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

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

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

March 1997 and in March 1998 is contained in Financial 

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

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

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

Information on changes to the March 31, 1997 Thrift 

Financial Reports is available from the Office of Thrift 

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

telephone (202) 906-5900. 

Subchapter S Corporations — The Small Business Job 

Protection Act of 1996 changed the Internal Revenue Code 

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

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

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

federal income taxes at the corporate level. Its taxable 

income flows through to its shareholders in proportion to their 

FDIC Quarterly Banking Profile 

Fourth Quarter 2000 21 Notes to Users 
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, and other assets. 

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

sheet credit losses, and other liabilities. 

Assessment base distribution — 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. 

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 

furnished by the Federal Housing Finance Board (FHFB) for 

Call filers and reported by TFR filers. 

Goodwill and other intangibles — intangible assets 

include servicing rights, purchased credit card relationships 

and other identifiable intangible assets. 

Loans secured by real estate — includes home equity 

loans, junior liens secured by 1-4 family residential properties 

and all other loans secured by real estate. 

Loans to individuals — includes outstanding credit card 

balances and other secured and unsecured consumer loans. 

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

with remaining maturities or repricing intervals of over five years. 

Mortgage-backed securities — certificates of participation 

in pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored 

or private enterprises. Also, see “Securities”, below. 

Net charge-offs — total loans and leases charged off 

(removed from balance sheet because of uncollectibility), 

less amounts recovered on loans and leases previously 

charged off. 

Net interest margin — the difference between interest and 

dividends earned on interest-bearing assets and interest 

paid to depositors and other creditors, expressed as a percentage of average earning assets. No adjustments are 

made for interest income that is tax exempt. 

Net operating income — income excluding discretionary 

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

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

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

in nonaccrual status. 

Noncurrent loans & leases — the sum of loans and leases 

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

FDIC Quarterly Banking Profile 

Notes to Users 22 Fourth Quarter 2000 
Number of institutions reporting — the number of institutions that actually filed a financial report. 

Off-balance-sheet derivatives — represents the sum of the 

following: interest-rate contracts (defined as the notional 

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

contracts). 

Futures and forward contracts — a contract in which the 

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

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

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

on organized exchanges which set limits on counterparty 

credit exposure. Forward contracts do not have standardized 

terms and are traded over the counter. 

Option contracts — a contract in which the buyer acquires 

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

amount of an underlying variable or index at a stated price 

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

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

discretion of the buyer of the contract. 

Swaps — an obligation between two parties to exchange a 

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

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

fixed, or determined for each settlement date by multiplying 

the quantity (notional principal) of the underlying variable or 

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

payment but is not exchanged. 

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

issued to the U.S. Treasury, 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 and the allocated transfer risk reserve on a consolidated basis. Prior to March 31, 1997, institutions filing a Thrift 

Financial Report (TFR) included specific reserves, while Call 

Report filers included only general valuation allowances. 

Beginning March 31, 1997, TFR reporters net these specific 

reserves against each loan balance. Also beginning March 

31, 1997, the allowance for off-balance-sheet credit exposures was moved to “Other liabilities”; previously, it had been 

included in the general valuation allowance. 

Restructured loans and leases — loan and lease financing 

receivables with terms restructured from the original contract. Excludes restructured loans and leases that are not in 

compliance with the modified terms. 

Return on assets — net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total assets. The basic yardstick of bank profitability. 

Return on equity — net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total equity capital. 

Risk-weighted assets — assets adjusted for risk-based 

capital definitions which include on-balance-sheet as well as 

off-balance-sheet items multiplied by risk-weights that range 

from zero to 100 percent. A conversion factor is used to 

assign a balance sheet equivalent amount for selected offbalance-sheet accounts. 

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

attributable amount acquired from SAIF members. 

Securities — excludes securities held in trading accounts. 

Banks’ securities portfolios consist of securities designated 

as “held-to-maturity”, which are reported at amortized cost 

(book value), and securities designated as “available-forsale”, reported at fair (market) value. 

Securities gains (losses) — realized gains (losses) on 

held-to-maturity and available-for-sale securities, before 

adjustments for income taxes. Thrift Financial Report (TFR) 

filers also include gains (losses) on the sales of assets held 

for sale. 

Troubled real estate asset rate — noncurrent real estate 

loans plus other real estate owned as a percent of total real 

estate loans and other real estate owned. 

Unearned income & contra accounts — unearned income 

and loans-in-process for TFR filers. Beginning March 31 

1997, TFR filers net the unearned income and the loans-inprocess against each loan balance, leaving just the 

unearned income on loans reported by Call Report filers. 

Unused loan commitments — includes credit card lines, 

home equity lines, commitments to make loans for construction, loans secured by commercial real estate, and unused 

commitments to originate or purchase loans. 

Volatile liabilities — the sum of large-denomination time 

deposits, foreign-office deposits, federal funds purchased, 

securities sold under agreements to repurchase, and other 

borrowings. 

Yield on earning assets — total interest, dividend and fee 

income earned on loans and investments as a percentage of 

average earning assets. 

FDIC Quarterly Banking Profile 

Fourth Quarter 2000 23 Notes to Users