Donna Tanoue, Chairman 

Second 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 BANKING PERFORMANCE—SECOND QUARTER, 2000 

n Charges At Several Large Banks Cause Decline In Industry Earnings 

n Industry ROA Falls Below 1 Percent For First Time In 30 Quarters 

n Most Banks Report Improved Profitability 

n Signs Of Weakness Persist In Commercial Loans 

n Net Interest Margin Falls To Lowest Level Since 1990 

Unusually high expenses for restructurings and 

additions to loan-loss reserves at several large 

banks trimmed the banking industry’s earnings to 

$14.7 billion in the second quarter. This is the 

lowest quarterly earnings total since the second 

quarter of 1997. Commercial banks’ net income 

was $2.2 billion (13.2 percent) less than they 

earned in the second quarter of 1999, and was 

$4.8 billion (24.7 percent) below their record earnings in the first quarter of this year. Transactions 

at a few large banks contributed to higher overhead expenses and loan-loss provisions for the 

industry, as well as unusually low growth in noninterest revenues. Despite the adverse shifts in 

QUARTERLY NET INCOME, 

1996–2000 

$ Billions 

Securities and Other Gains/Losses, Net 

Net Operating Income 19.5 19.4 

18.0 17.7 16.9 15.9 16.1 14.7 15.014.8 13.813.213.7 14.514.614.715.3 

12.0 

0 

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

1996 1997 1998 1999 2000 

industry totals, the majority of insured commercial 

banks continued to report improving profitability. 

The industry’s return on assets (ROA) declined to 

0.99 percent, the lowest level since the fourth 

quarter of 1992, but almost two out of every three 

banks (65.6 percent) had a quarterly ROA of 1 

percent or higher. A majority of banks (57.0 percent) had a higher ROA than in the second quarter of 1999, when the industry’s ROA was 1.25 

percent. Commercial banks’ earnings through the 

first six months of this year totaled $34.2 billion, 

down $665 million (1.9 percent) from the same 

period in 1999. The industry’s ROA for the first 

half of 2000 was 1.17 percent, compared to 1.28 

percent for the first half of 1999. 

Noninterest expenses of $55.2 billion were $4.3 

billion (8.5 percent) higher than a year ago. 

Restructuring charges taken by a few large banks 

accounted for more than half of this increase. 

Commercial banks’ loan-loss provisions were up 

by $2.2 billion (45.9 percent), with a large part of 

the increase attributable to higher provisions at a 

few large institutions. Sales of securities yielded 

$1 billion in losses in the second quarter, in contrast to the second quarter of 1999, when securities sales produced a net gain of $141 million. 

Industry earnings were also held down by lowerthan-usual growth in banks’ noninterest income. 

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

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

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

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

Efficiency Ratio (%) 1997–2000 Net Interest Margin (%) 1996–2000 

55 

60 

65 

61.48 

60.96 

Assets > $1 Billion 

Assets < $1 Billion 

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

1997 1998 1999 2000 

*Noninterest expense less amortization of intangible assets as a percent of net interest 

income plus noninterest income. 

Total noninterest income of $35.6 billion was only 

$1.1 billion (3.2 percent) higher than a year earlier, 

and was $3.2 billion (8.2 percent) below the quarterly record of $38.8 billion in the fourth quarter of 1999. 

Transactions reflecting restructurings and asset sales 

at several large banks were also largely responsible 

for the weakness in the industry’s noninterest revenues. In addition, conditions in the second quarter 

were less conducive to market-sensitive revenues, 

such as gains from venture capital investments. The 

combination of above-normal noninterest expenses 

and below-normal noninterest income caused large 

banks’ average efficiency ratio, which measures the 

proportion of revenues that are absorbed by overhead expenses, to rise above the smaller-bank average for the first time since the third quarter of 1996. 

Net interest margins improved at small banks but 

deteriorated at larger institutions during the second 

quarter. In an environment of rising interest rates, 

large banks’ average funding costs rose more rapidly 

than the average yields on their interest-bearing 

assets. More than half of all commercial banks— 

59.2 percent—reported higher net interest margins in 

the second quarter than in the first quarter, but 

declines at a number of large banks caused the 

industry average to register a slight decline, from 4.00 

percent to 3.99 percent. This is the first quarter that 

commercial banks’ average net interest margin has 

dropped below 4.00 percent since the third quarter of 

1990. The decline continues a trend dating back to 

1993; the industry’s most recent peak came in the 

fourth quarter of 1992, when it reached 4.55 percent. 

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

3.5 

4.0 

4.5 

5.0 

5.5 

Assets > $1 Billion 3.86 

Assets < $1 Billion 

2 2 2 2 1 

4.61 

1996 1997 1998 1999 2000 

Large banks’ commercial and industrial loans 

showed increasing signs of problems in the second 

quarter, while smaller banks’ C&I loans showed an 

improving trend. The industry’s annualized net 

charge-off rate on C&I loans rose to 0.67 percent 

from 0.54 percent a year ago. At commercial banks 

with assets over $1 billion, the average net charge-off 

rate rose from 0.53 percent to 0.68 percent; at banks 

with less than $1 billion in assets, the average net 

charge-off rate declined from 0.62 percent to 0.58 

percent. A similar disparity was evident in noncurrent 

C&I loans, as the percentage of large banks’ C&I 

loans that were noncurrent (90 days or more past due 

or in nonaccrual status) rose during the quarter from 

1.24 percent to 1.38 percent. The noncurrent rate on 

smaller banks’ C&I loans remained at 1.59 percent in 

the second quarter. No deterioration was evident in 

other loan categories. The net charge-off rate on 

banks’ credit-card loans continued to decline. During 

the second quarter, the net charge-off rate on these 

loans fell to 4.19 percent, compared to a 4.56-percent 

rate in the first quarter and a 4.25-percent rate in the 

second quarter of 1999. Two years ago, the net 

charge-off rate on credit-card loans was 5.42 percent. 

Total net charge-offs of $5.2 billion in the second 

quarter were $678 million (14.9 percent) higher than 

a year earlier. During the quarter, commercial banks 

set aside $7.2 billion in provisions for future loan 

losses, the largest quarterly amount since the first 

quarter of 1992. As a result, industry reserves 

increased by $2.1 billion, the largest quarterly 

increase since the fourth quarter of 1990. The 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 Second Quarter 2000 
increase in reserves was more than matched by 

increases in loans and in noncurrent loans. Total 

loans and leases increased by a record $136.7 billion 

during the quarter, while noncurrent loans registered 

their largest quarterly increase in almost 10 years, rising by $2.0 billion. As a result, the industry’s reserve 

ratio declined during the quarter from $1.68 to $1.67 

in reserves for every $100 of loans, the lowest level 

since the end of 1986. The “coverage ratio” also 

declined, to $1.69 in reserves for every $1.00 of noncurrent loans, the lowest level since the third quarter 

of 1995. 

Asset growth remained robust. Total assets of commercial banks increased by $138 billion (2.4 percent) 

during the quarter, and have grown by $515 billion 

(9.4 percent) over the last 12 months. Loans 

accounted for most of the asset growth in the quarter, 

rising by $137 billion. Loans secured by real estate 

increased by $65.9 billion, while commercial and 

industrial loans were up by $33.5 billion. Growth in 

real estate construction lending remained strong, and 

home equity loans registered a 7.5-percent ($8.1-billion) jump during the quarter. During the 12 months 

ended June 30, total loans and leases of insured 

commercial banks rose by 12.0 percent. 

Construction loans grew by 27.2 percent, home equity loans increased by 26.7 percent, and loans 

secured by commercial real estate rose by 14.4 percent. Over the past year, growth in commercial and 

industrial loans to smaller borrowers lagged behind 

the increase in larger C&I loans. C&I loans of $1 million or less increased by $20.5 billion (9.7 percent), 

while larger C&I loans increased by $82.8 billion 

(15.1 percent). 

COMMERCIAL AND INDUSTRIAL LOANS TO 

SMALL BUSINESSES,* 1996–2000 

$ Billions 

369.6 

412.3 

477.5 

547.4 

630.3 

177.5 190.0 200.7 212.0 232.5 

1996 1997 1998 1999 2000 

0 

Small Business 

(Original loan amounts < $1 Million) 

Medium/Large Business 

(Original loan amounts > $1 Million) 

*As of June 30. 

FDIC Quarterly Banking Profile 

Total deposits increased by $96.9 billion (2.5 percent) 

during the quarter, but only $17.2 billion of this 

increase consisted of core deposits (domestic 

deposits in accounts of less than $100,000), as banks 

increased their reliance on nondeposit liabilities and 

more volatile deposits. Deposits in foreign offices 

increased by $45.9 billion (7.2 percent). Broker 

deposits increased by a record $30.6 billion (27.5 

percent), with two banks accounting for more than a 

third (38.2 percent) of the increase.1 Commercial 

banks’ advances from Federal Home Loan Banks 

increased by $17.5 billion (10.9 percent). Banks’ balance sheets are becoming less liquid, as the industry’s ratio of loans to deposits continued to rise to new 

heights. 

NET LOANS AND LEASES TO DEPOSITS, 

1991–2000 

% of Deposits 

50 

60 

70 

80 

90 

100 

95.2 

77.9 

Assets > $1 Billion 

Assets < $1 Billion 

1 2 3 4 1 2 3 4 1 2 3 4 1 2 341 2 341 2 3 4 1 2 3 4 1 2 3 4 1 2 34 1 2 

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 

Equity capital growth remained strong. Commercial 

banks’ equity increased by $11.9 billion during the 

quarter, keeping pace with the growth in total assets, 

so that the industry’s equity-to-assets ratio remained 

at 8.41 percent. A $1.7-billion decline in unrealized 

losses on banks’ available-for-sale securities contributed to the growth in equity. 

The number of insured commercial banks reporting 

financial results declined by 40 institutions in the second quarter. During the quarter, there were 52 new 

bank charters, while 91 banks were absorbed by 

mergers and one insured commercial bank failed. 

The number of commercial banks on the FDIC’s 

“Problem List” increased from 71 to 72 banks during 

the quarter, while assets of “problem” banks 

increased from $5.2 billion to $11.1 billion. 

1 Merrill Lynch Bank USA and Merrill Lynch Bank & Trust Co. together increased their broker deposits by $11.7 billion during the 

quarter. 

Second Quarter 2000 3 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

2000* 1999* 1999 1998 1997 1996 1995 

Return on assets (%)............................................................................................ 1.17 1.28 1.31 1.19 1.23 1.19 1.17 

Return on equity (%)............................................................................ 13.91 14.96 15.31 13.93 14.68 14.45 14.66 

Core capital (leverage) ratio (%)......................................................................... 7.73 7.74 7.79 7.54 7.56 7.64 7.61 

Noncurrent assets plus 

other real estate owned to assets (%)......................................................... 0.67 0.64 0.63 0.65 0.66 0.75 0.85 

Net charge-offs to loans (%)...................................................................... 0.57 0.58 0.61 0.67 0.64 0.58 0.49 

Asset growth rate (%)................................................................................... 9.41 5.54 5.37 8.53 9.54 6.16 7.53 

Net interest margin (%)..................................................................................... 3.99 4.05 4.07 4.07 4.21 4.27 4.29 

Net operating income growth (%).......................................................................... 3.08 12.79 20.45 2.24 12.46 6.43 7.48 

Number of institutions reporting.............................................................. 8,477 8,674 8,580 8,774 9,142 9,527 9,940 

Percentage of unprofitable institutions (%)................................................................................... 6.62 6.46 7.45 6.11 4.85 4.28 3.55 

Number of problem institutions................................................................................... 73 62 66 69 71 82 144 

Assets of problem institutions (in billions)..................................................................... $11 $5 $4 $5 $5 $5 $17 

Number of failed/assisted institutions.......................................................................... 2 2 7 3 1 5 6 

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

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

(dollar figures in millions) 

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

Preliminary 

2nd Quarter 1st Quarter 2nd Quarter %Change 

2000 2000 1999 99:2-00:2 

8,477 8,517 8,674 -2.3 

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

CONDITION DATA

1,662,504 1,648,708 1,623,205 2.4 

 Total assets................................................................................................... $5,983,262 $5,845,247 $5,468,660 9.4

 Loans secured by real estate............................................................................................. 1,626,812 1,560,949 1,373,452 18.4

 Commercial & industrial loans.......................................................................................... 1,034,495 1,001,010 935,940 10.5

 Loans to individuals............................................................................... 568,136 556,491 534,476 6.3

 Farm loans................................................................................ 47,013 43,367 46,017 2.2

 Other loans & leases.............................................................................. 430,794 408,813 422,290 2.0

 Less: Unearned income.................................................................................. 3,205 3,252 3,664 -12.5

 Total loans & leases................................................................................................ 3,704,044 3,567,377 3,308,513 12.0

 Less: Reserve for losses.................................................................................. 61,924 59,813 57,619 7.5

 Net loans and leases............................................................................. 3,642,120 3,507,564 3,250,894 12.0

 Securities....................................................................................................................................... 1,046,529 1,056,464 1,007,396 3.9

 Other real estate owned........................................................................................... 2,781 2,764 2,915 -4.6

 Goodwill and other intangibles............................................................................... 102,297 101,315 85,555 19.6

 All other assets................................................................................. 1,189,536 1,177,140 1,121,900 6.0 

Total liabilities and capital.................................................................... 5,983,262 5,845,247 5,468,660 9.4

 Noninterest-bearing deposits............................................................... 723,982 708,360 708,759 2.1

 Interest-bearing deposits....................................................................... 3,249,991 3,168,699 2,972,016 9.4

 Other borrowed funds..................................................................... 1,128,512 1,088,690 963,572 17.1

 Subordinated debt...................................................................... 82,216 78,934 74,570 10.3

 All other liabilities......................................................................... 295,080 308,966 283,610 4.0

 Equity capital.................................................................................... 503,481 491,598 466,133 8.0 

Loans and leases 30-89 days past due......................................................... 39,429 39,793 36,953 6.7 

Noncurrent loans and leases................................................................... 36,638 34,596 31,170 17.5 

Restructured loans and leases........................................................................ 1,116 1,132 1,486 -24.9 

Direct and indirect investments in real estate.............................................................. 281 284 321 -12.3 

1-4 Family residential mortgages...................................................................... 903,690 862,206 755,030 19.7 

Mortgage-backed securities.................................................................................. 452,693 461,293 445,999 1.5 

Earning assets................................................................................... 5,180,472 5,045,053 4,727,664 9.6 

Long-term assets (5+ years).............................................................................................. 1,209,354 1,221,107 1,092,882 10.7 

Volatile liabilities................................................................................... 2,145,645 2,043,237 1,804,774 18.9 

Foreign office deposits.................................................................... 685,411 639,489 594,107 15.4 

FHLB Advances (Source: FHFB).................................................................... 178,572 161,052 122,043 46.3 

Unused loan commitments................................................................. 4,172,177 4,062,779 3,705,730 12.6 

Off-balance-sheet derivatives............................................................... 39,684,231 38,115,650 33,500,227 18.5 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

First Half First Half 2nd Quarter 2nd Quarter %Change 

2000 1999 %Change 2000 1999 99:2-00:2 

$206,252 $180,145 14.5 $105,936 $89,905 17.8 

105,124 84,988 23.7 54,864 42,114 30.3

101,128 95,158 6.3 51,072 47,790 6.9 

12,973 10,355 25.3 7,191 4,930 45.9 

74,042 69,205 7.0 35,604 34,512 3.2 

107,112 100,437 6.7 55,159 50,846 8.5 

-1,772 708 N/M -1,044 141 N/M 

19,084 19,341 -1.3 8,577 9,723 -11.8 

13 -33 N/M -4 1 N/M

34,241 34,906 -1.9 14,702 16,946 -13.2 

10,273 9,549 7.6 5,232 4,554 14.9 

22,761 23,005 -1.1 11,246 13,802 -18.5

35,564 34,502 3.1 15,564 16,892 -7.9 

N/M - Not meaningful 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 Second Quarter 2000 
TABLE III-A. First Half 2000, FDIC-Insured Commercial Banks 

FIRST HALF 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 

8,477 5,038 3,058 299 82 669 1,435 1,833 2,180 1,430 930 

Total assets (in billions).......................................................................... $5,983.3 $237.3 $766.3 $863.6 $4,116.1 $2,042.9 $1,605.4 $1,011.8 $417.4 $317.1 $588.7 

Total deposits (in billions)........................................................................ 3,974.0 199.4 620.2 597.2 2,557.2 1,290.7 1,066.5 677.5 284.1 249.5 405.7 

Net income (in millions).................................................................... 34,241 1,386 4,897 5,451 22,507 13,026 7,117 5,263 2,937 1,692 4,206 

% of unprofitable institutions................................................................... 6.6 9.9 1.5 4.0 6.1 10.0 11.1 5.6 3.1 5.3 9.5 

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

Performance ratios (annualized, %) 

69.8 69.2 71.9 65.6 48.8 65.5 69.3 67.4 71.0 70.3 75.2 

Yield on earning assets.................................................. 8.15 8.29 8.39 8.32 8.05 7.99 8.00 8.05 8.48 8.06 9.04 

Cost of funding earning assets.............................................................. 4.15 3.71 3.81 4.03 4.28 4.39 4.03 4.38 4.03 3.60 3.67 

Net interest margin............................................................... 3.99 4.58 4.58 4.30 3.77 3.60 3.97 3.67 4.45 4.46 5.37 

Noninterest income to earning assets.......................................................... 2.92 1.33 1.67 2.43 3.39 4.09 2.27 1.91 2.71 1.52 3.51 

Noninterest expense to earning assets................................................................. 4.23 3.90 3.84 3.93 4.40 4.71 4.05 3.33 4.05 3.71 5.14 

Credit loss provision to assets.................................................................... 0.44 0.26 0.30 0.46 0.48 0.44 0.34 0.40 0.58 0.34 0.75 

Net operating income to assets........................................................... 1.21 1.18 1.32 1.34 1.17 1.28 0.99 1.12 1.50 1.20 1.56 

Return on assets.................................................................. 1.17 1.19 1.31 1.30 1.11 1.29 0.91 1.06 1.45 1.08 1.48 

Return on equity............................................................... 13.91 10.86 14.09 15.02 13.86 16.31 10.73 13.36 16.22 12.48 14.50 

Net charge-offs to loans and leases....................................................... 0.57 0.24 0.32 0.59 0.64 0.75 0.41 0.33 0.81 0.35 0.88 

Credit loss provision to net charge-offs.................................................................... 126.28 179.03 147.29 123.00 123.75 111.57 129.60 179.13 106.73 169.19 127.36 

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

Condition Ratios (%) 

59.07 65.42 60.58 56.43 59.02 59.00 62.45 58.01 54.96 60.26 55.87 

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

Loss allowance to: 

86.58 91.83 91.57 90.11 84.61 83.36 87.23 89.65 89.84 89.11 87.04 

Loans and leases........................................................ 167 1.40 1.42 1.71 1.73 1.89 1.51 1.43 1.61 1.39 2.09 

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

Noncurrent assets plus 

169.01 149.68 184.20 204.66 161.82 149.12 169.96 169.24 205.24 143.27 234.86 

other real estate owned to assets........................................................ 0.67 0.69 0.59 0.58 0.70 0.73 0.64 0.62 0.58 0.65 0.68 

Equity capital ratio............................................................. 8.4110.94 9.30 8.63 8.06 8.01 8.26 7.97 9.27 8.75 10.23 

Core capital (leverage) ratio............................................................ 7.73 11.17 9.30 8.24 7.13 7.41 7.53 7.62 8.33 8.28 8.88 

Tier 1 risk-based capital ratio...................................................................................... 9.48 16.58 13.03 10.95 8.34 9.49 8.88 9.03 10.38 11.64 10.33 

Total risk-based capital ratio................................................................ 12.16 17.68 14.20 12.75 11.48 12.43 11.56 11.76 12.48 13.61 12.76 

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

Structural Changes (YTD) 

91.65 72.52 79.58 89.12 96.66 83.15 97.37 99.86 98.18 74.49 95.91 

New Charters........................................................................................ 108 105 2 1 0 11 41 21 15 4 16 

Banks absorbed by mergers...................................................................... 209 82 93 32 2 22 57 46 46 23 15 

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

PRIOR FIRST HALVES

 (The way it was...) 

2 1 1 0 0 0 0 0 1 0 1 

Number of institutions................................1999 8,674 5,302 2,978 317 77 684 1,439 1,880 2,243 1,485 943

 ...............................................1997 9,308 6,047 2,888 306 67 738 1,543 2,048 2,357 1,648 974

 ...............................................1995 10,169 6,987 2,783 331 68 815 1,685 2,220 2,560 1,815 1,074 

Total assets (in billions).............................1999 $5,468.7 $247.0 $736.7 $872.7 $3,612.3 $1,910.5 $1,233.1 $901.7 $374.6 $304.3 $744.5

 ................................................1997 4,771.4 273.5 711.3 916.0 2,870.6 1,810.7 855.1 795.9 289.3 342.1 678.4

 ................................................1995 4,170.8 306.6 680.7 1,057.3 2,126.2 1,590.1 701.6 681.5 268.6 313.0 616.0 

Return on assets (%)................................1999 1.28 1.08 1.39 1.56 1.21 1.15 1.27 1.31 1.58 1.18 1.50

 ................................................1997 1.25 1.24 1.36 1.26 1.21 1.16 1.29 1.26 1.45 1.24 1.31

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

Net charge-offs to loans & leases (%) 

1.13 1.18 1.22 1.27 1.02 0.99 1.15 1.17 1.41 1.17 1.27 

 ................................................1999 0.58 0.21 0.33 0.74 0.62 0.75 0.44 0.35 0.71 0.42 0.72

 ................................................1997 0.60 0.21 0.35 0.99 0.55 0.69 0.43 0.44 0.79 0.30 0.83

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

Noncurrent assets plus 

0.41 0.17 0.33 0.60 0.37 0.54 0.26 0.25 0.45 0.17 0.57 

OREO to assets (%)..............................1999 0.64 0.74 0.61 0.62 0.65 0.73 0.57 0.58 0.61 0.66 0.63

 ................................................1997 0.69 0.79 0.72 0.82 0.64 0.75 0.61 0.62 0.69 0.60 0.79

 ................................................1995 0.94 0.86 0.88 0.86 1.01 1.18 0.69 0.64 0.65 0.65 1.22 

Equity capital ratio (%)..............................1999 8.52 10.83 9.42 9.53 7.94 7.83 8.89 8.36 8.73 8.72 9.72

 ................................................1997 8.44 10.84 9.69 9.14 7.68 7.38 8.93 8.56 9.21 9.54 9.66

 ................................................1995 8.03 10.39 9.35 8.49 7.03 7.50 8.07 8.22 8.83 8.59 8.48 

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 

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

SECOND 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 

8,477 5,038 3,058 299 82 669 1,435 1,833 2,180 1,430 930 

Total assets (in billions)............................................................................. $5,983.3 $237.3 $766.3 $863.6 $4,116.1 $2,042.9 $1,605.4 $1,011.8 $417.4 $317.1 $588.7 

Total deposits (in billions).............................................................................. 3,974.0 199.4 620.2 597.2 2,557.2 1,290.7 1,066.5 677.5 284.1 249.5 405.7 

Net income (in millions)......................................................................... 14,701.7 710.9 2,504.5 2,412.5 9,073.8 5,964.4 1,859.1 2,300.9 1,554.0 821.3 2,202.0 

% of unprofitable institutions........................................................................ 7.0 9.8 2.4 5.7 9.8 10.8 12.2 5.6 3.8 4.8 9.8 

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

Performance Ratios (annualized, %) 

66.8 65.0 70.4 62.5 54.9 64.9 65.5 64.8 67.5 67.5 71.6 

Yield on earning assets............................................................................. 8.28 8.41 8.51 8.47 8.19 8.14 8.12 8.15 8.64 8.20 9.24 

Cost of funding earning assets...................................................................... 4.29 3.79 3.91 4.18 4.42 4.53 4.16 4.51 4.19 3.70 3.85 

Net interest margin................................................................................. 3.99 4.62 4.60 4.29 3.77 3.61 3.96 3.64 4.45 4.50 5.39 

Noninterest income to earning assets................................................................ 2.78 1.36 1.70 2.32 3.20 3.88 2.09 1.81 2.79 1.50 3.48 

Noninterest expense to earning assets........................................................... 4.31 3.89 3.84 4.00 4.51 4.72 4.37 3.32 4.06 3.76 5.08 

Credit loss provision to assets........................................................... 0.49 0.29 0.33 0.49 0.53 0.46 0.41 0.45 0.61 0.43 0.81 

Net operating income to assets.......................................................... 1.05 1.22 1.34 1.19 0.96 1.16 0.61 1.02 1.53 1.15 1.55 

Return on assets................................................................................ 0.99 1.21 1.32 1.14 0.89 1.18 0.47 0.92 1.52 1.04 1.52 

Return on equity.................................................................................... 11.81 11.06 14.24 13.16 11.05 14.73 5.60 11.55 16.84 11.97 14.92 

Net charge-offs to loans and leases................................................................. 0.58 0.30 0.32 0.59 0.64 0.74 0.42 0.32 0.80 0.35 0.90 

Credit loss provision to net charge-offs........................................................... 137.40 161.48 157.51 133.52 135.52 115.58 146.91 207.84 112.94 204.57 133.94 

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

Structural Changes (QTR) 

61.40 64.42 59.94 58.50 62.11 60.17 69.93 59.22 54.26 60.88 55.81 

New charters................................................................................. 52 51 1 0 0 5 24 5 7 1 10 

Banks absorbed by mergers............................................................................. 91 45 34 12 0 12 17 18 25 13 6 

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

PRIOR SECOND QUARTERS

 (The way it was...) 

1 1 0 0 0 0 0 0 0 0 1 

Return on assets (%)................................1999 1.25 1.08 1.32 1.68 1.14 0.98 1.29 1.28 1.64 1.30 1.59

 .................................................1997 1.24 1.27 1.37 1.24 1.21 1.14 1.28 1.25 1.50 1.27 1.32

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

Net charge-offs to loans & leases (%)

1.16 1.19 1.23 1.27 1.07 1.04 1.18 1.19 1.42 1.25 1.23 

 .................................................1999 0.56 0.24 0.34 0.74 0.57 0.70 0.45 0.31 0.72 0.41 0.68

 .................................................1997 0.62 0.25 0.38 1.01 0.58 0.72 0.44 0.47 0.84 0.29 0.87

 .................................................1995 0.45 0.20 0.37 0.72 0.36 0.50 0.29 0.28 0.49 0.18 0.77 

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

Rhode Island, Vermont, U.S. Virgin Islands

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

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

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

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

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

FDIC Quarterly Banking Profile 

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

June 30, 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.......................................................... 0.98 1.15 0.84 0.79 1.08 1.00 1.04 1.05 0.96 0.97 0.68 

Construction and development.................................................................... 0.94 0.94 0.93 0.93 0.96 0.79 0.61 1.43 1.21 1.21 0.96 

Commercial real estate........................................................................... 0.62 0.88 0.64 0.61 0.59 0.62 0.48 0.82 0.82 0.73 0.49 

Multifamily residential real estate................................................................... 0.43 0.37 0.44 0.52 0.41 0.23 0.37 0.75 0.50 1.01 0.27 

Home equity loans................................................................ 0.72 0.74 0.65 0.83 0.71 0.63 0.60 1.02 0.71 0.89 0.54 

Other 1-4 Family residential...................................................................... 1.25 1.51 1.05 0.90 1.38 1.20 1.46 1.18 1.05 1.13 0.85 

Commercial and industrial loans*................................................................ 0.85 1.43 1.25 1.30 0.66 0.59 0.60 1.12 1.78 1.26 1.08 

Loans to individuals......................................................... 2.09 2.16 1.95 2.05 2.12 2.35 2.06 2.09 2.03 1.46 1.78 

Credit card loans.............................................................................. 2.41 1.98 3.49 2.52 2.32 2.75 2.57 1.87 2.21 1.32 1.86 

Other loans to individuals....................................................................... 1.89 2.17 1.65 1.81 1.95 1.97 1.88 2.12 1.85 1.46 1.62 

All other loans and leases (including farm)............................................................... 0.58 N/A N/A 1.03 0.58 0.36 0.58 0.93 0.75 0.48 0.90 

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

Percent of Loans Noncurrent** 

0.91 0.92 0.65 0.65 0.94 1.91 0.32 0.67 1.33 1.09 0.38 

All real estate loans...................................................................... 0.77 0.77 0.61 0.70 0.84 0.89 0.77 0.78 0.59 0.85 0.58 

Construction and development................................................................. 0.73 0.68 0.60 0.74 0.78 0.74 0.68 0.81 0.64 1.03 0.62 

Commercial real estate.......................................................................... 0.76 0.79 0.64 0.78 0.82 0.84 0.71 0.86 0.63 0.94 0.63 

Multifamily residential real estate................................................................ 0.35 0.42 0.41 0.37 0.32 0.22 0.33 0.49 0.26 0.37 0.45 

Home equity loans............................................................................... 0.32 0.34 0.28 0.32 0.32 0.31 0.22 0.53 0.28 0.31 0.18 

Other 1-4 Family residential........................................................ 0.79 0.68 0.58 0.67 0.89 0.80 0.91 0.77 0.50 0.66 0.57 

Commercial and industrial loans*............................................................ 1.41 1.33 1.19 1.19 1.41 1.68 1.32 1.07 1.16 1.70 1.44 

Loans to individuals.............................................................................. 1.32 0.76 0.78 0.93 1.53 2.13 0.85 0.72 1.02 0.47 1.12 

Credit card loans.............................................................................. 1.88 1.08 2.23 1.64 1.90 2.36 1.61 1.04 1.49 0.71 1.51 

Other loans to individuals......................................................................... 0.97 0.75 0.50 0.57 1.22 1.91 0.58 0.67 0.54 0.46 0.40 

All other loans and leases (including farm)................................................................ 0.44 N/A N/A 0.52 0.46 0.39 0.36 0.65 0.44 0.41 0.46 

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

Percent of Loans Charged-off (net, YTD) 

0.42 1.25 0.40 0.53 0.40 0.50 0.46 0.44 0.24 0.32 0.24 

All real estate loans................................................................................ 0.07 0.04 0.03 0.08 0.09 0.07 0.08 0.08 0.09 0.06 0.05 

Construction and development................................................................... 0.02 0.02 0.02 0.05 0.01 0.00 0.03 0.01 -0.02 0.05 0.03 

Commercial real estate........................................................................ 0.04 0.04 0.02 0.04 0.06 0.03 0.04 0.07 0.01 0.05 0.04 

Multifamily residential real estate................................................. 0.01 0.01 0.01 -0.01 0.01 -0.07 0.00 0.01 -0.06 -0.01 0.16 

Home equity loans.......................................................................... 0.14 0.05 0.05 0.17 0.15 0.10 0.14 0.20 0.19 0.43 0.06 

Other 1-4 Family residential....................................................................... 0.10 0.05 0.04 0.12 0.11 0.06 0.11 0.09 0.19 0.06 0.09 

Commercial and industrial loans*.......................................................................... 0.60 0.36 0.36 0.51 0.63 0.61 0.56 0.44 0.54 0.60 1.01 

Loans to individuals............................................................................... 2.23 0.79 1.61 2.37 2.38 2.73 1.62 1.18 3.30 0.84 2.87 

Credit card loans........................................................................ 4.34 5.73 7.37 5.06 4.01 4.38 3.55 3.79 6.19 2.91 3.93 

Other loans to individuals......................................................................... 0.95 0.53 0.46 0.97 1.09 1.12 0.99 0.81 0.55 0.76 1.06 

All other loans and leases (including farm).................................................................... 0.18 N/A N/A 0.24 0.19 0.10 0.22 0.22 0.20 0.10 0.47 

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

Loans Outstanding (in billions) 

0.05 0.20 1.36 -0.01 0.02 0.04 0.08 0.04 0.05 0.05 0.02 

All real estate loans..................................................................................... $1,626.8 $83.9 $319.0 $296.4 $927.5 $350.5 $549.9 $321.3 $127.5 $89.1 $188.5 

Construction and development.................................................................... 150.4 6.8 33.8 33.5 76.3 15.2 56.5 28.7 13.2 11.9 24.9 

Commercial real estate........................................................................... 447.2 23.5 117.2 98.5 208.1 77.3 134.1 94.1 35.8 33.8 72.1 

Multifamily residential real estate........................................................................ 59.7 1.9 10.9 11.5 35.4 15.2 16.8 12.3 3.8 2.7 8.9 

Home equity loans.............................................................................. 116.2 2.0 13.4 18.0 82.8 25.5 39.9 29.6 6.5 1.3 13.3 

Other 1-4 Family residential........................................................................... 787.5 38.8 130.4 130.9 487.5 187.4 292.9 148.3 57.7 35.8 65.4 

Commercial and industrial loans...................................................................... 1,034.5 25.0 90.8 119.1 799.6 337.3 283.8 199.9 66.2 49.6 97.6 

Loans to individuals.................................................................... 568.1 20.1 64.6 93.6 389.8 203.2 123.1 76.4 52.8 34.0 78.7 

Credit card loans.......................................................... 218.9 0.8 10.6 31.6 175.9 98.4 32.4 9.3 26.6 1.3 50.9 

Other loans to individuals..................................................................... 349.3 19.3 54.1 62.0 213.9 104.8 90.7 67.1 26.1 32.7 27.9 

All other loans and leases (including farm)....................................................... 477.8 17.9 27.1 33.0 399.9 204.1 98.5 89.0 37.1 16.0 33.1 

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

Memo: Other Real Estate Owned (in millions) 

37.3 0.2 1.1 2.9 33.1 10.1 13.1 5.1 2.7 1.3 5.0 

All other real estate owned........................................................................... $2,781.1 $264.8 $638.4 $404.0 $1,474.0 $795.0 $823.6 $387.2 $192.6 $239.1 $343.7 

Construction and development...................................................... 217.7 26.8 92.8 39.0 59.1 39.8 96.4 21.7 15.8 16.0 28.0 

Commercial real estate........................................................................ 1,240.6 120.1 293.4 178.4 648.6 359.6 352.4 143.5 78.2 121.6 185.3 

Multifamily residential real estate.............................................................. 55.3 8.3 23.3 16.9 6.7 6.7 9.6 11.5 7.5 5.6 14.3 

1-4 Family residential.................................................................. 1,016.7 82.4 202.0 161.6 570.7 204.9 358.7 202.5 68.1 76.9 105.6 

Farmland.................................................................................. 69.4 27.2 26.8 6.9 8.5 3.9 6.5 7.9 22.9 19.0 9.2 

Other real estate owned in foreign offices............................................................ 181.5 0.0 0.0 1.0 180.4 180.1 0.0 0.0 0.0 0.0 1.4 

* 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 

Second Quarter 2000 7 FDIC-Insured Commercial Banks 
SAVINGS INSTITUTION PERFORMANCE—SECOND QUARTER, 2000 

n Industry Earnings Decline To $2.8 Billion 

n Higher Loan-Loss Provisions Contribute To Earnings Decline 

n Net Interest Margin Falls To Lowest Level Since 1991 

n Increases In Noninterest Income Limit The Drop In Earnings 

FDIC-insured savings institutions reported 

earnings of $2.8 billion in the second quarter, down 

by $194 million from the first quarter and by $106 

million from a year ago. Earnings were lower 

primarily because of higher loan-loss provisions 

and noninterest expenses, but improved 

noninterest income and gains on the sales of 

securities limited the decline. Provisions for loan 

losses were up by $147 million (35 percent) from 

last quarter and by $170 million (42 percent) from 

a year earlier. Noninterest income was up by $235 

million (9 percent) from last quarter and by $441 

million (18 percent) from a year earlier. Fee 

income, other than deposit service charges, 

accounted for the bulk of the increase in noninterest income. Noninterest income represented 

26.4 percent of net operating revenue—net 

interest income plus noninterest income—a higher 

portion than a year ago, when it contributed 23.3 

percent. Noninterest expenses increased by $188 

million (3 percent) over last quarter and by $260 

million (4 percent) from a year ago. Gains on the 

sales of securities rose $52 million (30 percent) 

from last quarter to $221 million, but this total was 

less than half the total reported a year ago, which 

QUARTERLY NET INCOME, 1996–2000 

$ Billions 

0 

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 

2.9 2.8 2.7 

2.9 

2.8 

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

Net Operating Income 

Securities and Other Gains/Losses, Net 

1996 1997 1998 1999 2000 

was $447 million. The aggregate annualized 

return on assets (ROA) for the quarter was 0.95 

percent, down from last quarter and from a year 

ago; the ROA for the industry was 1.03 percent last 

quarter and a year ago. Almost 61 percent of 

savings institutions showed improved earnings 

from a year ago, and 8 percent were unprofitable. 

Average profitability of the smallest asset size 

group (less than $100 million) improved, but much 

of this improvement reflected large amounts of 

noninterest income reported by two specialized 

institutions. Noninterest income for this group rose 

to 1.75 percent of earning assets, up from 1.43 

percent last quarter, accounting for one-third of net 

operating revenue. Their large increases in 

noninterest income and improved margins helped 

drive the average ROA for thrifts with less than 

$100 million in assets to 0.67 percent from 0.57 

percent last quarter. Without the two institutions 

that accounted for 41 percent of the group’s 

noninterest income, noninterest income of the 

remaining institutions would have been 1.04 

percent of earning assets, up from 0.87 percent 

last quarter and ROA would have been 0.52 

percent, up from 0.46 percent in the first quarter. 

Profitability would have declined from year-ago 

levels (0.58 percent ROA) without these two 

institutions. The percentage of small thrifts that 

were unprofitable rose to 15 percent in the second 

quarter from 13 percent a year ago and just 21 

percent had an ROA of 1.00 percent or better. 

Rising interest rates in the second quarter hurt net 

interest margins at a majority of institutions, where 

liabilities repriced faster than assets. The cost of 

funding earning assets was up 21 basis points 

while the yield on earning assets was up by 17 

basis points for a decline in net interest margins of 

4 basis points. Only the margins at small thrifts, 

those with assets of less than $100 million, 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 Second Quarter 2000 
showed improvement, rising 4 basis points. Their COVERAGE RATIO* AND RESERVE LEVELS, 

yield on earning assets rose by 20 basis points $ Billions 1996–2000 Coverage Ratio (%) 

while the cost of funding earning assets rose by 

only 16 basis points. No individual institutions 

significantly influenced the average margin for this 

group. The largest thrifts, those with assets over 

$5 billion, reported lower margins, down by 6 basis 

points. For this group the cost of funding earning 

assets rose by 24 basis points while the yield on 

earning assets rose by just 18 basis points. The 

aggregate net interest margin for the industry, at 

3.00 percent, was the lowest quarterly annualized 

rate since 1991. 

QUARTERLY NET INTEREST MARGINS, 

1996–2000 Net Interest Margin (%) 

4.0 

3.5 

3.0 

2.5 

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

2.88 

3.39 

Assets > $1 Billion 

Assets < $1 Billion 

1996 1997 1998 1999 2000 

Despite the decline in overall noncurrent loans, the 

industry added to its reserves for loan losses. 

Thrifts’ reserves increased by $115 million during 

the second quarter, while noncurrent loans 

declined by $212 million. At the end of June, 

reserves were 0.88 percent of loans (the lowest 

level since 1990), down from 0.89 percent last 

quarter. Provisions for loan losses, which add to 

30 

$7.0 

Noncurrent Loans ($) 

Loan-Loss Reserves ($) 

Coverage Ratio (%) 

$5.2 

134% 

150 

25 

20 100 

15 

10 50 

5 

0 0 

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

1996 1997 1998 1999 2000 

*Loan-loss reserves to noncurrent loans. 

The quarterly increase in assets for the industry, at 

$21.3 billion, was the biggest increase in over a 

year. Home mortgages were up by $18.5 billion, 

while investment securities declined by $4.6 billion. 

Loans to individuals grew by $2.1 billion and 

commercial and industrial loans rose by $1.8 

billion. Most of the asset growth was funded by a 

$14.4 billion increase in Federal Home Loan Bank 

(FHLB) advances. Thrifts also increased deposits 

by $2.8 billion. Equity capital rose by $1.3 billion 

for the industry, but this increase did not keep pace 

with asset growth. The industry’s equity capital 

ratio fell to 8.16 percent, down from 8.20 percent 

last quarter. Earnings retained by the industry after 

paying $1.7 billion in cash dividends were just over 

$1 billion this quarter, down from $1.5 billion last 

quarter. The total risk-based capital ratio also 

declined to 13.99 percent, the lowest level since 

RISK-BASED CAPITAL RATIOS, 

1994–2000 

Ratio (%) 

reserves, exceeded net charge-offs, which 

subtract from reserves, by $220 million. The 16 

coverage ratio—loan loss reserves to noncurrent 

loans—rose to a record high of $1.34 for each 

dollar of noncurrent loans. Commercial and 12 

industrial loans deteriorated, with noncurrent rates 

rising from 1.18 percent last quarter to 1.25 8 

percent at the end of this quarter. These loans 

represent approximately 3 percent of industry 

assets. All other loan categories remained stable 4 1 2 3 4 1 2 341 2 341 2 341 2 341 2 3 4 1 2 

or showed improved noncurrent rates. 1994 1995 1996 1997 1998 1999 2000 

8.16 Equity to Assets 

Total Risk-Based Capital 

Core Capital (Leverage) 

Tier 1 Risk-Based Capital 12.81 

13.99 

7.77 

FDIC Quarterly Banking Profile 

Second Quarter 2000 9 FDIC-Insured Savings Institutions 
1992. This decline was due to the rise in riskweighted assets. Because loans have a higher 

risk weighting than securities, thrifts’ shift from 

securities to loans caused the increase in riskweighted assets. 

The commercial banking industry absorbed 19 

savings institutions with $14.7 billion in assets 

during the second quarter. Of these, 17 were 

mergers, and 2 savings institutions converted their 

charters to a commercial bank charter. Within the 

thrift industry, mergers reduced the number of 

charters by 6 this quarter. Ten de novo institutions 

opened, to offset some of the decline in savings 

institution charters. Other additions include 2 new 

charters to absorb other thrifts, plus charter 

conversions from 1 credit union and 2 commercial 

banks. No savings institutions failed this quarter. 

Other structural changes that do not affect the 

count of charters include 5 mutual-to-stock 

conversions by thrifts with $393 million in assets. 

The number of “problem” institutions increased by 

one to 16, with $7.6 billion in assets at the end of 

the quarter—up from $5.3 billion in assets at the 

beginning of the quarter. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Second Quarter 2000 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

2000** 1999** 1999 1998 1997 1996 1995 

Return on assets (%)............................................................................................ 0.99 1.01 1.00 1.01 0.93 0.70 0.77 

Return on equity (%)............................................................................ 12.02 11.69 11.72 11.34 10.84 8.41 9.40 

Core capital (leverage) ratio (%)......................................................................... 7.77 7.93 7.86 7.85 7.95 7.76 7.80 

Noncurrent assets plus 

other real estate owned to assets (%)......................................................... 0.54 0.62 0.58 0.72 0.95 1.09 1.20 

Net charge-offs to loans (%)...................................................................... 0.18 0.17 0.17 0.22 0.25 0.32 0.34 

Asset growth rate (%)................................................................................... 4.74 7.75 5.57 6.06 -0.21 0.32 1.70 

Net interest margin..................................................................................... 3.02 3.09 3.10 3.10 3.23 3.22 3.09 

Net operating income growth (%).......................................................................... 11.77 8.51 16.61 7.68 20.07 -13.92 13.81 

Number of institutions reporting.............................................................. 1,624 1,653 1,641 1,689 1,780 1,926 2,030 

Percentage of unprofitable institutions (%)................................................................................... 7.88 6.65 8.29 5.27 4.10 12.05 5.86 

Number of problem institutions................................................................................... 16 14 13 15 21 35 49 

Assets of problem institutions (in billions)..................................................................... $8 $4 $6 $6 $2 $7 $14 

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

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

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

(dollar figures in millions) 

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

Preliminary 

2nd Quarter 1st Quarter 2nd Quarter %Change 

2000 2000 1999 99:2-00:2 

1,624 1,634 1,653 -1.8 

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

CONDITION DATA

242,707 245,038 241,372 0.6 

 Total assets................................................................................................... $1,179,386 $1,158,119 $1,125,978 4.7

 Loans secured by real estate............................................................................................. 701,957 680,535 656,509 6.9 

1-4 Family Residential............................................................................... 558,856 540,364 528,043 5.8 

Multifamily residential property....................................................................... 55,062 53,961 52,248 5.4 

Commercial real estate................................................................. 56,605 55,506 50,143 12.9 

Construction, development, and land........................................................................................ 31,434 30,704 26,076 20.5

 Commercial & industrial loans.......................................................................................... 31,205 29,422 23,680 31.8

 Loans to individuals............................................................................... 61,645 59,580 57,585 7.1

 Other loans & leases.............................................................................. 4,864 4,666 3,958 22.9

 Less: Unearned income & contra accounts***.................................................................................. 205 200 188 9.2

 Total loans & leases................................................................................................ 799,465 774,004 741,545 7.8

 Less: Reserve for losses.................................................................................. 7,001 6,887 6,991 0.1

 Net loans & leases............................................................................. 792,463 767,117 734,554 7.9

 Securities....................................................................................................................................... 278,459 283,103 290,315 -4.1

 Other real estate owned........................................................................................... 1,112 1,152 1,353 -17.8

 Goodwill and other intangibles............................................................................... 15,782 15,320 15,432 2.3

 All other assets................................................................................. 91,570 91,427 84,325 8.6 

Total liabilities and capital.................................................................... 1,179,386 1,158,119 1,125,978 4.7

 Deposits................................................................................................. 716,010 713,219 699,276 2.4

 Other borrowed funds..................................................................... 348,681 331,877 311,517 11.9

 Subordinated debt...................................................................... 2,834 3,018 2,946 -3.8

 All other liabilities......................................................................... 15,667 15,074 16,011 -2.1

 Equity capital.................................................................................... 96,194 94,931 96,228 0.0 

Loans and leases 30-89 days past due......................................................... 6,310 6,283 6,423 -1.8 

Noncurrent loans and leases................................................................... 5,220 5,432 5,630 -7.3 

Restructured loans and leases........................................................................ 1,563 1,638 2,083 -24.9 

Direct and indirect investments in real estate.............................................................. 677 655 606 11.7 

Mortgage-backed securities.................................................................................. 210,425 218,875 220,536 -4.6 

Earning assets................................................................................... 1,090,730 1,075,808 1,047,428 4.1 

FHLB Advances (Source: TFR and FHFB).................................................................... 250,093 235,701 199,469 25.4 

Unused loan commitments................................................................. 208,791 203,654 183,955 13.5 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

First Half First Half 2nd Quarter 2nd Quarter %Change 

2000 1999 %Change 2000 1999 99:2-00:2 

$40,535 $37,093 9.3 $20,782 $18,809 10.5 

24,521 21,265 15.3 12,712 10,755 18.2

16,014 15,828 1.2 8,070 8,054 0.2 

987 793 24.4 569 400 42.4 

5,493 4,761 15.4 2,888 2,447 18.0 

12,363 12,122 2.0 6,330 6,071 4.3 

390 1,044 -62.6 221 447 -50.5 

2,899 3,187 -9.0 1,530 1,618 -5.5 

8 -3 N/M 2 -1 N/M

5,656 5,529 2.3 2,752 2,858 -3.7 

688 609 13.0 350 318 10.0 

3,172 2,255 40.7 1,703 1,184 43.9

5,392 4,824 11.8 2,611 2,554 2.3 

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

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

FDIC Quarterly Banking Profile 

Second Quarter 2000 11 FDIC-Insured Commercial Banks 
TABLE III-B. First Half 2000, FDIC-Insured Savings Institutions 

FIRST HALF 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 

1,624 643 835 111 35 638 217 416 127 113 113 

Total assets (in billions).......................................................................... $1,179.4 $31.8 $246.4 $225.0 $676.2 $395.5 $78.6 $181.5 $43.8 $80.9 $399.2 

Total deposits (in billions)........................................................................ 716.0 24.9 184.8 143.0 363.3 266.1 54.1 122.7 26.4 46.3 200.4 

Net income (in millions).................................................................... 5,656.3 95.3 991.7 1,068.6 3,500.7 1,845.1 260.7 872.1 177.8 395.9 2,104.7 

% of unprofitable institutions................................................................... 7.9 14.9 3.4 3.6 0.0 5.3 10.6 8.7 12.6 8.0 8.8 

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

Performance ratios (annualized, %) 

61.6 60.3 62.0 63.1 68.6 65.4 57.6 59.6 59.1 61.9 57.5 

Yield on earning assets.................................................. 7.64 7.55 7.60 7.80 7.60 7.52 7.89 7.91 7.56 8.04 7.50 

Cost of funding earning assets.............................................................. 4.62 4.08 4.21 4.60 4.80 4.21 4.71 4.71 4.73 4.93 4.89 

Net interest margin............................................................... 3.02 3.48 3.38 3.20 2.80 3.32 3.19 3.20 2.83 3.11 2.62 

Noninterest income to earning assets.......................................................... 1.03 1.60 0.71 0.92 1.17 0.83 1.29 1.57 0.86 1.23 0.93 

Noninterest expense to earning assets................................................................. 2.33 4.02 2.72 2.37 2.09 2.47 3.05 2.80 2.18 2.60 1.81 

Credit loss provision to assets*.................................................................... 0.17 0.08 0.11 0.32 0.15 0.11 0.37 0.42 0.12 0.29 0.07 

Net operating income to assets........................................................... 0.94 0.58 0.79 0.87 1.04 0.93 0.63 0.90 0.84 0.98 1.04 

Return on assets.................................................................. 0.99 0.61 0.82 0.98 1.07 0.97 0.70 0.99 0.84 1.01 1.08 

Return on equity............................................................... 12.02 4.72 7.97 11.44 15.05 10.14 7.68 11.57 8.82 12.43 16.53 

Net charge-offs to loans and leases....................................................... 0.18 0.06 0.08 0.36 0.16 0.11 0.24 0.28 0.14 0.24 0.17 

Credit loss provision to net charge-offs.................................................................... 143.37 221.82 184.68 132.04 142.47 150.45 215.53 198.97 114.18 176.08 62.18 

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

Condition Ratios (%) 

55.65 78.76 65.52 56.02 50.25 57.03 67.36 57.10 57.32 58.86 49.45 

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

Loss allowance to: 

92.48 93.91 93.89 93.00 91.73 91.84 93.25 91.48 93.56 92.92 93.22 

Loans and leases........................................................ 0.88 0.71 0.83 0.99 0.86 0.97 0.82 0.81 0.59 0.86 0.88 

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

Noncurrent assets plus 

134.12 89.81 146.56 96.78 155.39 131.20 139.37 115.00 115.86 93.62 167.97 

other real estate owned to assets........................................................ 0.54 0.65 0.49 0.86 0.44 0.56 0.55 0.64 0.53 0.78 0.42 

Noncurrent RE loans to RE loans............................................ 0.62 0.75 0.55 1.03 0.51 0.74 0.53 0.61 0.47 0.90 0.51 

Equity capital ratio............................................................. 8.16 12.76 10.26 8.46 7.07 9.52 8.74 8.47 9.31 8.05 6.45 

Core capital (leverage) ratio............................................................ 7.77 12.62 10.12 8.05 6.60 8.79 8.63 7.89 8.68 8.02 6.41 

Tier 1 risk-based capital ratio...................................................................................... 12.81 23.07 17.10 13.05 10.79 14.38 14.16 12.27 15.49 11.92 11.09 

Total risk-based capital ratio................................................................ 13.99 24.01 18.21 14.18 12.02 15.66 15.60 13.44 16.21 13.06 12.19 

Gross real estate assets to gross assets................................................ 77.04 69.48 72.01 73.61 80.37 70.51 73.00 73.80 79.65 65.75 87.79 

Gross 1-4 family mortgages to gross assets............................................ 47.10 49.82 46.84 41.73 48.85 41.96 46.92 54.78 53.03 33.58 50.82 

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

Structural Changes (YTD) 

110.68 86.09 91.94 105.59 123.90 93.64 101.82 112.56 120.42 121.91 130.66 

New Charters........................................................................................ 17 16 1 0 0 9 2 2 3 0 1 

Thrifts absorbed by mergers...................................................................... 36 15 13 7 1 9 9 12 3 2 1 

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

PRIOR FIRST HALVES

 (The way it was...) 

1 1 0 0 0 0 1 0 0 0 0 

Number of institutions...............................1999 1,653 682 828 108 35 644 227 431 127 113 111

 ...............................................1997 1,852 808 887 121 36 704 271 478 139 126 134

 ...............................................1995 2,082 946 975 126 35 767 319 534 157 138 167 

Total assets (in billions).............................1999 $1,126.0 $35.1 $241.4 $220.8 $628.7 $372.9 $68.9 $179.5 $39.2 $72.3 $393.1

 ................................................1997 1,028.6 42.1 263.4 246.3 476.8 341.5 65.8 175.9 41.8 64.7 338.9

 ................................................1995 1,017.2 48.3 282.0 267.0 419.9 334.6 77.4 167.6 52.8 74.1 310.7 

Return on assets (%)................................1999 1.01 0.68 0.92 1.14 1.01 0.98 0.92 1.08 0.82 1.15 1.00

 ................................................1997 0.94 0.80 0.96 1.12 0.85 0.99 0.91 1.00 0.84 1.11 0.85

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

Net charge-offs to loans & leases (%) 

0.72 0.64 0.68 0.77 0.73 0.87 0.81 0.89 0.95 0.81 0.39 

 ................................................1999 0.17 0.09 0.09 0.39 0.13 0.10 0.22 0.25 0.16 0.20 0.17

 ................................................1997 0.28 0.10 0.13 0.36 0.35 0.31 0.46 0.22 0.05 0.40 0.26

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

Noncurrent assets plus 

0.33 0.18 0.16 0.36 0.46 0.38 0.13 0.09 0.18 0.18 0.52 

OREO to assets (%)***.....................1999 0.62 0.70 0.59 0.91 0.53 0.66 0.58 0.66 0.51 0.86 0.54

 ................................................1997 1.02 0.89 0.90 1.35 0.92 1.20 0.93 0.64 0.66 1.01 1.09

 .................................................1995 1.26 1.02 1.11 1.45 1.27 1.66 0.99 0.50 0.59 1.07 1.46 

Equity capital ratio (%)..............................1999 8.55 12.21 10.71 8.87 7.40 9.59 10.30 9.12 10.21 8.17 6.89

 ................................................1997 8.53 11.65 10.08 8.52 7.41 9.29 9.64 9.27 8.73 8.30 7.19

 ................................................1995 8.18 10.40 9.43 8.23 7.05 8.84 8.76 8.93 8.15 7.13 7.18 

* 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 Second Quarter 2000 
TABLE IV-B. SECOND Quarter 2000, FDIC-Insured Savings Institutions 

SECOND 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 

1,624 643 835 111 35 638 217 416 127 113 113 

Total assets (in billions)............................................................................. $1,179.4 $31.8 $246.4 $225.0 $676.2 $395.5 $78.6 $181.5 $43.8 $80.9 $399.2 

Total deposits (in billions).............................................................................. 716.0 24.9 184.8 143.0 363.3 266.1 54.1 122.7 26.4 46.3 200.4 

Net income (in millions)......................................................................... 2,752.2 52.3 503.9 526.2 1,669.8 893.7 122.6 448.6 89.7 205.8 991.8 

% of unprofitable institutions........................................................................ 8.0 15.2 3.2 3.6 2.9 6.1 11.1 8.7 10.2 8.0 8.0 

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

Performance Ratios (annualized, %) 

60.8 57.9 63.1 59.5 65.7 61.6 56.2 61.1 58.3 66.4 61.9 

Yield on earning assets............................................................................. 7.72 7.67 7.67 7.90 7.69 7.59 7.99 8.07 7.64 8.15 7.57 

Cost of funding earning assets...................................................................... 4.72 4.17 4.29 4.71 4.92 4.28 4.85 4.85 4.84 5.06 4.99 

Net interest margin................................................................................. 3.00 3.51 3.38 3.18 2.77 3.31 3.13 3.22 2.80 3.10 2.58 

Noninterest income to earning assets................................................................ 1.07 1.75 0.75 0.90 1.22 0.84 1.21 1.69 0.87 1.27 0.98 

Noninterest expense to earning assets........................................................... 2.35 4.14 2.71 2.36 2.13 2.52 2.98 2.90 2.19 2.57 1.81 

Credit loss provision to assets........................................................... 0.20 0.09 0.11 0.37 0.17 0.12 0.44 0.51 0.12 0.31 0.07 

Net operating income to assets.......................................................... 0.90 0.61 0.82 0.81 0.98 0.90 0.56 0.87 0.81 1.01 0.96 

Return on assets................................................................................ 0.95 0.67 0.83 0.95 1.01 0.92 0.64 1.01 0.84 1.03 1.00 

Return on equity.................................................................................... 11.58 5.18 8.03 11.18 14.18 9.69 7.18 11.82 8.86 12.78 15.46 

Net charge-offs to loans and leases................................................................. 0.18 0.05 0.08 0.33 0.17 0.13 0.27 0.23 0.18 0.21 0.17 

Credit loss provision to net charge-offs*........................................................... 162.76 245.85 193.68 165.50 153.85 142.73 232.63 281.62 95.12 202.95 65.97 

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

Structural Changes (QTR) 

55.92 78.32 65.03 56.12 50.91 58.01 67.90 57.42 57.92 57.84 49.14 

New charters................................................................................. 12 11 1 0 0 5 2 2 2 0 1 

Thrifts absorbed by mergers............................................................................. 23 10 8 5 0 4 8 6 2 2 1 

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

PRIOR SECOND QUARTERS**

 (The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%)................................1999 1.03 0.66 0.88 1.18 1.05 1.05 0.82 1.06 0.89 1.23 1.00

 .................................................1997 0.95 0.83 0.97 1.15 0.84 1.00 0.92 1.09 0.68 1.16 0.82

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

Net charge-offs to loans & leases (%)

0.76 0.56 0.76 0.81 0.74 0.87 0.79 0.96 0.90 0.86 0.47 

 .................................................1999 0.17 0.11 0.10 0.31 0.16 0.12 0.21 0.19 0.19 0.20 0.20

 .................................................1997 0.30 0.12 0.16 0.33 0.37 0.35 0.46 0.19 0.17 0.37 0.28

 .................................................1995 0.36 0.27 0.18 0.39 0.48 0.40 0.19 0.09 0.11 0.19 0.59 

* 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 

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

June 30, 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.......................................................... 0.69 1.47 0.84 0.70 0.59 0.61 0.79 0.88 1.00 0.79 0.60 

Construction, development, and land.................................................................... 0.87 1.50 1.30 0.85 0.53 0.59 1.06 1.82 1.42 0.46 0.51 

Commercial real estate........................................................................... 0.58 1.07 0.65 0.80 0.31 0.50 0.98 1.20 0.80 0.53 0.24 

Multifamily residential real estate................................................................... 0.17 0.49 0.36 0.21 0.09 0.17 0.30 0.48 0.13 0.28 0.10 

Home equity loans................................................................ 0.39 0.43 0.52 0.32 0.35 0.51 0.28 0.46 0.30 0.01 0.21 

Other 1-4 Family residential...................................................................... 0.76 1.58 0.89 0.76 0.67 0.68 0.77 0.85 1.05 1.00 0.70 

Commercial and industrial loans................................................................ 1.42 1.79 1.31 1.60 1.32 1.41 1.80 2.10 1.57 0.64 1.19 

Loans to individuals......................................................... 1.64 2.12 1.50 1.45 1.72 1.60 2.48 1.87 1.28 0.70 1.94 

Credit card loans.............................................................................. 1.61 1.47 1.69 3.17 1.39 1.45 3.86 2.08 2.77 0.51 2.01 

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

Percent of Loans Noncurrent* 

1.65 2.14 1.49 1.15 1.89 1.63 2.25 1.73 1.20 0.84 1.93 

All real estate loans...................................................................... 0.62 0.75 0.55 1.03 0.51 0.74 0.53 0.61 0.47 0.90 0.51 

Construction, development, and land.................................................................... 0.74 1.17 0.83 1.16 0.36 0.61 0.81 0.98 1.27 0.09 1.40 

Commercial real estate.......................................................................... 0.82 0.83 0.65 1.26 0.65 1.02 0.63 0.70 0.64 0.80 0.54 

Multifamily residential real estate................................................................ 0.30 0.64 0.27 0.63 0.17 0.44 0.31 0.28 0.13 2.38 0.10 

Home equity loans............................................................................... 0.19 0.14 0.19 0.27 0.17 0.25 0.09 0.25 0.06 0.02 0.12 

Other 1-4 Family residential........................................................ 0.64 0.73 0.55 1.07 0.55 0.75 0.51 0.62 0.41 1.08 0.56 

Commercial and industrial loans............................................................ 1.25 1.94 0.90 1.33 1.31 0.88 1.13 1.64 1.80 2.38 1.15 

Loans to individuals.............................................................................. 0.72 0.85 0.55 0.82 0.73 0.58 0.80 1.21 0.37 0.50 0.39 

Credit card loans.............................................................................. 1.23 0.90 0.77 2.18 1.12 1.06 2.51 1.51 1.22 0.77 1.03 

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

Percent of Loans Charged-off (net, YTD) 

0.55 0.85 0.54 0.58 0.52 0.51 0.52 1.02 0.33 0.30 0.29 

All real estate loans................................................................................ 0.03 0.01 0.02 0.05 0.04 0.02 0.03 0.05 0.07 0.02 0.04 

Construction, development, and land.................................................................... 0.06 0.01 0.06 0.11 0.02 -0.03 0.03 0.20 0.05 0.04 0.06 

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

Multifamily residential real estate................................................. -0.03 -0.02 0.04 -0.04 -0.05 0.01 -0.03 0.05 0.05 0.12 -0.08 

Home equity loans.......................................................................... 0.08 0.00 0.04 0.11 0.09 0.09 0.14 0.05 0.26 0.07 0.06 

Other 1-4 Family residential....................................................................... 0.04 0.01 0.02 0.05 0.05 0.03 0.03 0.04 0.07 0.01 0.06 

Commercial and industrial loans.......................................................................... 0.58 0.44 0.56 0.98 0.41 0.37 1.97 0.53 0.95 0.14 0.74 

Loans to individuals............................................................................... 1.66 0.47 0.67 3.35 1.41 0.93 1.14 1.97 0.73 1.15 4.18 

Credit card loans........................................................................ 3.89 1.97 3.15 13.64 2.50 2.80 3.52 2.88 5.71 1.82 18.84 

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

Loans Outstanding (in billions) 

0.89 0.42 0.56 1.46 0.80 0.60 0.73 1.41 0.48 0.62 1.31 

All real estate loans..................................................................................... $702.0 $19.4 $153.6 $131.8 $397.1 $215.6 $46.5 $117.7 $28.8 $42.4 $250.9 

Construction, development, and land.................................................................... 31.4 1.1 8.8 8.7 12.9 6.3 4.7 5.2 1.8 8.1 5.3 

Commercial real estate........................................................................... 56.3 1.8 19.6 15.3 19.6 26.6 3.8 7.0 2.7 4.9 11.4 

Multifamily residential real estate........................................................................ 55.1 0.6 9.0 13.2 32.3 15.7 0.9 5.4 1.0 2.0 30.0 

Home equity loans.............................................................................. 20.4 0.4 5.2 4.0 10.7 7.5 1.8 5.3 0.6 0.6 4.6 

Other 1-4 Family residential........................................................................... 538.5 15.5 110.9 90.6 321.5 159.6 35.3 94.8 22.8 26.7 199.5 

Commercial and industrial loans...................................................................... 31.2 0.7 6.9 7.4 16.3 15.1 2.8 4.1 1.1 3.8 4.3 

Loans to individuals.................................................................... 61.6 1.5 10.3 12.1 37.7 19.1 6.0 15.8 2.0 10.5 8.2 

Credit card loans.......................................................... 15.5 0.0 0.4 1.8 13.1 2.7 0.8 6.2 0.1 4.5 1.1 

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

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

46.2 1.4 9.8 10.3 24.6 16.5 5.2 9.6 1.9 6.0 7.1 

All other real estate owned........................................................................... $1,111.6 $33.7 $248.3 $383.3 $446.3 $349.0 $109.5 $179.5 $68.6 $109.8 $295.3 

Construction, development, and land.................................................................... 181.3 4.4 39.2 29.6 108.0 18.7 76.1 19.7 20.8 13.3 32.7 

Commercial real estate........................................................................ 277.9 6.3 70.3 154.2 47.1 130.3 10.5 34.7 22.6 41.0 38.8 

Multifamily residential real estate.............................................................. 63.2 0.4 16.2 33.9 12.7 22.6 0.7 7.8 0.2 16.7 15.2 

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

Troubled Real Estate Asset Rates*** 

(% of total RE assets) 

628.1 23.0 127.0 179.3 298.9 190.9 38.8 119.6 27.3 39.8 211.8 

All real estate loans.............................................................................. 0.78 0.92 0.71 1.32 0.62 0.90 0.76 0.76 0.70 1.16 0.63 

Construction, development, and land.................................................................... 1.31 1.57 1.27 1.50 1.19 0.91 2.40 1.35 2.38 0.26 2.00 

Commercial real estate............................................................... 1.31 1.20 1.00 2.25 0.90 1.51 0.91 1.20 1.46 1.61 0.89 

Multifamily residential real estate........................................................... 0.42 0.71 0.45 0.88 0.21 0.59 0.39 0.43 0.15 3.18 0.15 

1-4 family residential............................................................................... 0.74 0.85 0.64 1.22 0.63 0.84 0.59 0.72 0.51 1.19 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 Second Quarter 2000 
ALL FDIC-INSURED INSTITUTIONS 

n BIF Reserve Ratio Dips To 1.34 Percent 

n SAIF Reserve Ratio Remains At 1.44 Percent 

n One BIF Member Fails In The Second Quarter 

The total assets of the nation’s 10,118 FDICinsured institutions increased 2.3 percent from 

March 31 to June 30. This asset growth of $159 

billion was funded primarily by deposits, which rose 

by $100 billion, or 2.2 percent, during the threemonth period. Insured deposits, however, rose just 

$22 billion, or 0.7 percent, as foreign-office deposits 

and large, uninsured domestic deposits accounted 

for the bulk of deposit growth. 

Only one insured institution failed during the 

second quarter of 2000, a Bank Insurance Fund 

(BIF) member with total assets of $11 million. For 

the first six months of the year, two BIF members 

and one Savings Association Insurance Fund 

(SAIF) member failed, resulting in estimated losses 

of $19 million to the BIF and $1 million to the SAIF. 

The BIF increased minimally during the second 

quarter, rising to $29.78 billion (unaudited) on June 

30 from $29.74 billion on March 31. The BIF 

reserve ratio stood at 1.34 percent of estimated 

insured deposits on June 30, compared to 1.35 

percent at the end of the first quarter and 1.40 

percent in the second quarter of 1999. The reserve 

ratio of the SAIF was unchanged from March to 

June, holding at 1.44 percent of estimated insured 

deposits, compared to 1.43 percent in June 1999. 

The fund’s balance of $10.5 billion (unaudited) on 

June 30, 2000, was up from $10.4 billion three 

months earlier. 

Beginning with the second quarter of 2000, the 

method used by the FDIC to estimate insured 

deposits incorporates estimates made by some 

institutions of their uninsured deposits. In general, 

insured deposits are estimated to be total domestic 

deposits minus uninsured deposits, and uninsured 

deposits have been derived from the number and 

balances of accounts larger than $100,000. 

Alternative estimates of uninsured deposits have 

been reported by some banks and thrifts since 

1993, but these estimates were not incorporated 

into the insured-deposits calculation, in part 

because the two methodologies resulted in 

aggregate differences, both positive and negative, 

that were not considered significant. On one hand, 

insured deposits may be overestimated when 

owners of multiple accounts have less than full 

coverage on all accounts. On the other hand, 

insured deposits likely are underestimated for 

institutions that report large (greater than $100,000) 

deposits that “pass through” full insurance 

coverage to individual depositors. Based on 

reported estimates of uninsured deposits, this 

underestimation of insured deposits has become 

significant, growing from $3 billion in 1996 to $21.8 

billion in June 2000. This latter figure includes 

$19.5 billion for the BIF and $2.3 billion for the SAIF. 

Reported values of uninsured deposits, which are 

required for Thrift Financial Report filers and are 

optional for Call Report filers, are considered to 

result in more accurate estimates of insured 

deposits and have been incorporated into the 

methodology. For the second quarter of 2000, the 

net effect of the higher estimates of insured 

deposits was a decrease of 1 basis point in the BIF 

and SAIF reserve ratios from the levels that would 

have been calculated using the old methodology. 

TOTAL LIABILITIES AND EQUITY CAPITAL, 

JUNE 30, 2000 

All Other 

Liabilities 

Equity 

Capital 

Uninsured 

Deposits 

24.6% 

Other 

Borrowed Funds 

20.6% 

5.5% 

8.4% 

Insured Deposits 

40.9% 

FDIC Quarterly Banking Profile 

Second Quarter 2000 15 All FDIC-Insured Institutions 
 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

Number of institutions reporting............................................................................................ 10,101 10,327 10,221 10,463 10,922 11,453 11,970 

Total assets........................................................... $7,162,648 $6,594,638 $6,883,712 $6,530,947 $6,041,127 $5,607,333 $5,338,418 

Total deposits..................................................................... 4,689,983 4,380,050 4,538,081 4,386,297 4,125,861 3,925,058 3,769,480 

Number of problem institutions................................................................................... 89 76 79 84 92 117 193 

Assets of problem institutions (in billions)..................................................................... $19 $9 $10 $11 $6 $12 $31 

Number of failed/assisted institutions.......................................................................... 3 2 8 3 1 6 8 

Assets of failed/assisted institutions (in billions)..................................................................... $0.16 $0.03 $1.56 $0.37 $0.03 $0.22 $1.21 

** As of June 30. 

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

(dollar figures in millions) 

CONDITION DATA 

Preliminary 

2nd Quarter 1st Quarter 2nd Quarter %Change 

2000 2000 1999 99:2-00:2 

Total assets................................................................................................... $7,162,649 $7,003,366 $6,594,638 8.6

 Loans secured by real estate............................................................................................. 2,328,768 2,241,484 2,029,962 14.7 

1-4 Family residential.......................................................................................... 1,462,545 1,402,570 1,283,073 14.0 

Home equity loans.................................................................. 136,529 127,684 109,292 24.9 

Multifamily residential property.................................................... 114,726 111,206 100,123 14.6 

Commercial real estate........................................................... 503,578 489,182 440,606 14.3 

Construction, development, and land............................................ 181,824 173,155 144,226 26.1 

Other real estate loans............................................................... 66,095 65,370 61,935 6.7 

Commercial & industrial loans 1,065,700 1,030,432 959,621 11.1

 Loans to individuals............................................................................... 629,780 616,071 592,061 6.4

 Credit cards & related plans................................................................................ 234,307 222,420 205,749 13.9

 Other loans & leases.............................................................................. 482,670 456,846 472,266 2.2

 Less: Unearned income & contra accounts.................................................................................. 3,410 3,452 3,852 -11.5

 Total loans & leases................................................................................................ 4,503,508 4,341,381 4,050,058 11.2

 Less: Reserve for losses.................................................................................. 68,925 66,700 64,611 6.7 

Net loans and leases............................................................................. 4,434,583 4,274,681 3,985,447 11.3 

Securities....................................................................................................................................... 1,324,988 1,339,567 1,297,711 2.1 

Other real estate owned........................................................................................... 3,893 3,916 4,268 -8.8 

Goodwill and other intangibles............................................................................... 118,079 116,635 100,988 16.9 

All other assets................................................................................. 1,281,106 1,268,567 1,206,225 6.2 

Total liabilities and capital.................................................................... 7,162,649 7,003,366 6,594,638 8.6

 Deposits....................................................................... 4,689,983 4,590,279 4,380,051 7.1

 Other borrowed funds..................................................................... 1,477,193 1,420,566 1,275,089 15.9

 Subordinated debt...................................................................... 85,050 81,952 77,516 9.7

 All other liabilities......................................................................... 310,747 324,040 299,621 3.7

 Equity capital.................................................................................... 599,675 586,528 562,361 6.6 

Loans and leases 30-89 days past due......................................................... 45,739 46,077 43,376 5.4 

Noncurrent loans and leases................................................................... 41,858 40,028 36,799 13.7 

Restructured loans and leases........................................................................ 2,679 2,769 3,569 -24.9 

Direct and indirect investments in real estate.............................................................. 959 940 927 3.4 

Mortgage-backed securities.................................................................................. 663,118 680,169 666,535 -0.5 

Earning assets................................................................................... 6,271,202 6,120,861 5,775,092 8.6 

FHLB Advances (Source: TFR and FHFB)................................................................................... 428,665 396,753 321,512 33.3 

Unused loan commitments................................................................. 4,380,968 4,266,433 3,889,685 12.6 

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

Preliminary Preliminary 

First Half First Half 2nd Quarter 2nd Quarter %Change 

2000 1999 %Change 2000 1999 99:2-00:2 

$246,787 $217,238 13.6 $126,718 $108,714 16.6 

129,645 106,252 22.0 67,575 52,869 27.8

117,142 110,986 5.5 59,142 55,844 5.9 

13,960 11,148 25.2 7,760 5,330 45.6 

79,535 73,967 7.5 38,493 36,960 4.1 

119,475 112,558 6.1 61,489 56,917 8.0 

-1,382 1,752 N/M -822 588 N/M 

21,983 22,528 -2.4 10,107 11,341 -10.9 

21 -36 N/M -2 0 N/M

39,897 40,435 -1.3 17,454 19,804 -11.9 

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

 

 

 

 

0 

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 

2nd Quarter 

2000 

1st Quarter 

2000 

2nd Quarter 

1999 

%Change 

99:2-00:2 

 1.34 1.35 1.40 -4.5 

 $29,780 $29,739 $29,831 -0.2 

2,222,825 2,196,283 2,129,612 4.4 

51,712 47,569 41,823 23.6 

2,171,113 2,148,714 2,087,788 4.0 

3,140,538 3,090,556 2,952,766 6.4 

52,607 48,488 42,774 23.0 

3,087,931 3,042,068 2,909,992 6.1 

 1.44 1.44 1.43 1.0 

 $10,538 $10,435 $10,066 4.7 

 730,774 723,534 703,552 3.9 

 284,692 279,874 260,285 9.4 

71,326 72,064 67,396 5.8 

 374,757 371,595 375,871 -0.3 

 791,673 783,438 748,799 5.7 

 285,366 280,383 260,789 9.4 

84,895 83,961 76,302 11.3 

 421,412 419,095 411,708 2.4 

Insurance Fund Reserve Ratios* Fund Balances and Insured Deposits* 

Percent of Insured Deposits ($Millions) 

SAIF 

BIF 

Target Ratio 

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

1.15 

1.30 1.34 1.38 1.39 1.36 1.37 1.37 1.35 1.34 

0.28 

0.47 

1.30 

1.44 1.44 1.44 

BIF BIF-Insured SAIF SAIF-Insured 

Balance Deposits Balance Deposits 

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

1.25 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 

3/99 29,852 2,123,564 9,937 707,143 

6/99 29,831 2,129,612 10,066 703,552 

9/99 29,499 2,132,292 10,205 707,565 

12/99 29,414 2,153,519 10,281 715,531 

3/00 29,739 2,196,283 10,435 723,534 

6/00 29,780 2,222,825 10,538 730,774 

* 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* 1999 1998 1997 1996 1995 

2 

$124 

2 

$30 

7 

$1,424 

3 

$370 

1 

$26 

5 

$183 

6 

$753 

1 

$34 

0 

$0 

1 

$63 

0 

$0 

0 

$0 

1 

$35 

2 

$456 

* Through June 30. 

FDIC Quarterly Banking Profile 

Second Quarter 2000 17 All FDIC-Insured Institutions 
 

 

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

(dollar figures in millions) 

BIF Members 

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

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

Other BIF-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................................................................... 

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

2000** 1999** 1999 1998 1997 1996 1995 

8,733 8,771 8,927 9,031 9,404 9,823 10,243 

740 729 739 745 778 793 807 

7,993 8,042 8,188 8,286 8,626 9,030 9,436 

$6,232,755 $5,738,223 $5,980,163 $5,702,770 $5,285,403 $4,857,760 $4,577,897 

4,126,483 3,841,948 3,987,378 3,843,816 3,611,453 3,404,203 3,225,649 

35,391 36,198 73,983 64,334 61,459 54,483 50,779 

1.16 1.27 1.30 1.18 1.22 1.17 1.15 

13.75 14.74 15.11 13.81 14.44 14.14 14.32 

0.65 0.63 0.62 0.64 0.67 0.77 0.89 

73 63 66 68 73 86 151 

$11,136 $4,638 $4,450 $5,326 $4,598 $6,624 $20,166 

2 2 7 3 1 5 6 

$124 $30 $1,424 $370 $26 $183 $753 

1,368 1,380 1,400 1,432 1,518 1,629 1,727 

120 121 118 116 112 94 77 

1,248 1,259 1,282 1,316 1,406 1,535 1,650 

$929,893 $856,415 $903,548 $828,177 $755,724 $749,572 $760,520 

563,499 538,102 550,703 542,481 514,408 520,854 543,831 

4,506 4,236 8,459 7,597 6,485 4,891 5,584 

1.00 1.01 0.99 0.98 0.94 0.67 0.76 

12.53 12.06 11.98 11.34 11.13 8.08 9.47 

0.60 0.68 0.64 0.80 0.98 1.07 1.12 

16 13 13 16 19 31 42 

$7,647 $4,241 $5,524 $5,992 $1,662 $5,548 $10,864 

1 0 1 0 0 1 2 

$34 $0 $63 $0 $0 $35 $456 

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

** Through June 30, ratios annualized where appropriate. 

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

(dollar figures in millions) 

June 30, 2000 

Commercial Banks and Savings Institutions 

Number of Total Domestic 

Institutions Assets Deposits* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks............................................................................... 8,477 $5,983,262 $3,288,563 $2,018,985 $290,506 $2,309,490 

BIF-member......................................................................................................... 8,369 5,894,976 3,227,523 2,003,315 257,673 2,260,989 

SAIF-member..................................................................................................... 108 88,287 61,039 15,670 32,832 48,502 

FDIC-Supervised..................................................................................................... 5,178 1,079,634 792,373 533,135 67,275 600,410 

OCC-Supervised..................................................................................................... 2,303 3,363,838 1,788,975 1,091,891 160,714 1,252,604 

Federal Reserve-Supervised.................................................................................. 996 1,539,790 707,214 393,959 62,517 456,476 

FDIC-Insured Savings Institutions................................................................................. 1,624 1,179,386 716,010 202,511 440,269 642,780 

OTS-Supervised Savings Institutions......................................................................... 1,091 888,499 518,313 80,758 383,993 464,751 

BIF-member........................................................................................................ 40 109,786 59,285 46,054 9,235 55,290 

SAIF-member......................................................................................................... 1,051 778,712 459,028 34,704 374,757 409,461 

FDIC-Supervised State Savings Banks................................................................................ 533 290,888 197,697 121,752 56,276 178,029 

BIF-member......................................................................................................... 324 227,993 154,322 120,413 17,783 138,197 

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

Total Commercial Banks and 

209 62,895 43,375 1,339 38,493 39,832 

Savings Institutions............................................................................................. 10,101 7,162,649 4,004,573 2,221,496 730,774 2,952,270 

BIF-member........................................................................................................ 8,733 6,232,755 3,441,130 2,169,783 284,692 2,454,475 

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

Other FDIC-Insured Institutions 

1,368 929,894 563,443 51,712 446,083 497,795 

U.S. Branches of Foreign Banks................................................................................ 19 9,053 3,723 1,330 0 1,330 

Total FDIC-Insured Institutions...................................................................................... 10,120 7,171,701 4,008,296 2,222,825 730,774 2,953,600

 Excludes $685 billion in foreign office deposits, which are uninsured. 

FDIC Quarterly Banking Profile 

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

BIF Assessment Base Distribution 

Assessable Deposits in Millions as of June 30, 2000 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2000 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

8,139 

$3,052,799 

159 

$23,745 

3 

$141 

93.0% 

97.0% 

1.8% 

0.8% 

0.0% 

0.0% 

359 4.1% 

$60,912 1.9% 

15 0.2% 

$1,730 0.1% 

0 0.0% 

$0 0.0% 

58 

$7,028 

10 

$954 

9 

$615 

0.7% 

0.2% 

0.1% 

0.0% 

0.1% 

0.0% 

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

SAIF Assessment Base Distribution 

Assessable Deposits in Millions as of June 30, 2000 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2000 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

1,232 

$748,904 

22 

$4,560 

0 

$0 

90.1% 

95.5% 

1.6% 

0.6% 

0.0% 

0.0% 

88 6.4 % 

$22,318 2.8 % 

8 0.6 % 

$2,029 0.3 % 

0 0.0 % 

$0 0.0 % 

14 

$3,946 

3 

$2,266 

1 

$93 

1.0% 

0.5% 

0.2% 

0.3% 

0.1% 

0.0% 

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

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

by on-site examinations. 

Assessment Rate Schedules 

Second Semiannual 2000 Assessment Period 

Cents Per $100 of Assessable Deposits 

Capital Group 

Supervisory Risk Subgroup 

A B C 

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

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

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

0 

3 

10 

3 

10 

24 

17 

24 

27 

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

Currently, the rate schedules are identical. 

FDIC Quarterly Banking Profile 

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

1992–2000 

Number of Institutions 

Savings Institutions 

Commercial Banks 

ASSETS OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1992–2000 

$592 

$334 

$72 

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

$ Billions 

1,063 

572 

318 

193 

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

426 247 144 82 71 68 64 70 69 64 62 69 66 72 73 

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 

146 71 49 35 21 16 18 18 15 16 14 11 13 15 16 

787 

276 

Savings Institutions 

Commercial Banks 

Savings Institutions 

Commercial Banks 

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 

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

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

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 20 Second 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 

Second 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 — each institution’s capital 

category is calculated or estimated from its financial report 

and does not reflect supervisory upgrades or downgrades: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) Capital * Capital * Leverage Equity 

Well-capitalized >10 and >6 and >5 — 

Adequately 

capitalized >8 and >4 and >4 — 

Undercapitalized >6 and >3 and >3 — 

Significantly 

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

Critically 

undercapitalized — — — <2 

*As a percentage of risk-weighted assets. 

For purpose of BIF and SAIF assessments, risk-based 

assessment rules combine the last three capital rating categories into a single “undercapitalized” group. Supervisory 

risk subgroup assignments are based on supervisory ratings. 

The strongest institutions (those rated 1 or 2) are in subgroup 

A, those rated 3 are in subgroup B, and those rated 4 or 5 

are in subgroup C. 

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

attributable amount acquired from BIF members. 

Construction and development loans — includes loans 

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

land acquisition and development. 

Core capital — common equity capital plus noncumulative 

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

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

with supervisory capital regulations. 

Cost of funding earning assets — total interest expense 

paid on deposits and other borrowed money as a percentage 

of average earning assets. 

Direct and indirect investments in real estate — excludes 

loans secured by real estate and property acquired through 

foreclosure. 

Earning assets — all loans and other investments that earn 

interest or dividend income. 

Efficiency Ratio — Noninterest expense less amortization 

of intangible assets as a percent of net interest income plus 

noninterest income. This ratio measures the proportion of net 

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

Estimated insured deposits — estimated amount of 

insured deposits (account balances less than $100,000). 

The sum of all deposit balances in accounts of less than 

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

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

Failed/assisted institutions — an institution fails when regulators take control of the institution, placing the assets and 

liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the FDIC 

to provide funds to cover losses. An institution is defined as 

“assisted” when the institution remains open and receives 

some insurance funds in order to continue operating. 

FHLB advances — all borrowings by FDIC insured institutions from the Federal Home Loan Bank System (FHLB) as 

furnished by the Federal Housing Finance Board (FHFB) for 

Call filers and reported by TFR filers. 

Goodwill and other intangibles — intangible assets 

include servicing rights, purchased credit card relationships 

and other identifiable intangible assets. 

Loans secured by real estate — includes home equity 

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

and all other loans secured by real estate. 

Loans to individuals — includes outstanding credit card 

balances and other secured and unsecured consumer loans. 

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

with remaining maturities or repricing intervals of over five years. 

Mortgage-backed securities — certificates of participation 

in pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored 

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

Net charge-offs — total loans and leases charged off 

(removed from balance sheet because of uncollectibility), 

less amounts recovered on loans and leases previously 

charged off. 

Net interest margin — the difference between interest and 

dividends earned on interest-bearing assets and interest 

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

made for interest income that is tax exempt. 

Net operating income — income excluding discretionary 

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

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

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

in nonaccrual status. 

Noncurrent loans & leases — the sum of loans and leases 

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

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

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

following: interest-rate contracts (defined as the notional 

FDIC Quarterly Banking Profile 

Notes to Users 22 Second Quarter 2000 
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 

Second Quarter 2000 23 Notes to Users