Donna Tanoue, Chairman 

First Quarter 1999 

Division of Research 

& Statistics 

Don Inscoe 

Associate Director 

Statistics Branch 

(202) 898-3940 

Tim Critchfield 

(202) 898-8557 

Jim McFadyen 

(202) 898-7027 

Ross Waldrop 

(202) 898-3951 

COMMERCIAL BANKING PERFORMANCE—1ST QUARTER, 1999 

••Industry Earnings Soar To Record-High $18 Billion 

••Margins And Profitability Decline At Smaller Banks 

••Trading Revenues Set Quarterly Record 

••Growth In Commercial Lending Remains Strong, But Credit Quality 

Declines 

Insured commercial banks earned $18.0 billion in net income in the first quarter of 1999, 

eclipsing the previous record of $16.1 billion 

set in the second quarter of 1998. The industry’s first-quarter results were $2.1 billion (12.9 

percent) higher than in the first quarter of 

1998. The average return on assets (ROA) 

rose to 1.32 percent, matching the quarterly 

record set in the third quarter of 1995. More 

than half of all commercial banks—59.0 percent—reported ROAs of 1 percent or higher 

for the quarter, but only 39.3 percent had higher ROAs than a year ago, when the industry 

average was 1.26 percent. A majority of 

banks with less than $100 million in assets 

reported lower earnings than a year ago. 

The surge in net income came from higher 

operating results. Net operating income (net 

QUARTERLY NET INCOME, 

1995–1999 

$ Billions 

Securities and Other Gains, Net 18.0 

Net Operating Income 15.916.1 

15.3 15.014.8 14.5 14.614.7

13.8 13.8 13.7 13.2 

12.0 12.0 12.0 

11.1 

1234 12 3 4 1234 12 34 1 

1995 1996 1997 1998 1999 

income before gains on sales of securities and 

extraordinary items) rose by $2.8 billion (18.6 

percent), compared to the first quarter of 

1998. Nonrecurring items such as gains from 

sales of securities and other assets contributed less than 2 percent of industry net 

income in the first quarter, compared to 6.6 

percent a year ago. The strongest-growing 

component of operating income remained 

noninterest income, which was $5.7 billion 

(19.5 percent) higher than in the first quarter 

of 1998. Income from trading activities set a 

quarterly record of $3.6 billion, which was 

$939 million (35.4 percent) more than a year 

ago. Net interest income was $3.1 billion (6.9 

percent) higher. Net income from international operations totaled $2.3 billion, an increase 

of $582 million (33.1 percent). Noninterest 

expenses were $5.3 billion lower than in the 

INTERNATIONAL OPERATIONS CONTRIBUTION 

TO BANK EARNINGS, 1994–1999 

Earnings from International Operations, % of Net Income 

16 

12 

8 

4 

0 

1994 1995 1996 1997 1998 1999 

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. 
fourth quarter of 1998, when several of the largest 

banks registered sizable restructuring charges, but 

were $3.9 billion (8.6 percent) higher than a year 

ago. Provisions for credit losses were up by $581 

million (12.0 percent), compared to a year ago. 

The industry’s net interest margin of 4.05 percent 

was 1 basis point lower than a year ago, but the stability in the industry average concealed divergent 

trends in the margins of larger and smaller banks. 

Average margins at banks with less than $100 million in assets were 26 basis points lower than a year 

ago, and are now at their lowest level in 8 years. In 

contrast, margins at larger banks (assets over $100 

million) increased by 1 basis point. In an environment of declining interest rates and a relatively flat 

yield curve, average asset yields declined farther at 

smaller banks than at their larger counterparts, while 

the decline in their average funding costs was more 

gradual. Because net interest income comprises a 

much greater share of revenues at smaller banks, 

margin erosion was a major reason for the declines 

in earnings and profitability at many institutions. The 

average ROA at banks with less than $100 million in 

assets declined by 9 basis points, while the average 

for the rest of the industry rose by 7 basis points. 

The gap between larger-bank ROAs and smallerbank ROAs widened from 7 basis points in the first 

quarter of 1998 to 23 basis points in the first quarter 

of 1999. 

QUARTERLY NET INTEREST MARGINS, 

1995–1999 Net Interest Margin (%) 

4.0 

4.5 

5.0 Assets < $100 Million 

Assets > $100 Million 

4.32 

4.04 

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

1995 1996 1997 1998 1999 

The profitability gap between larger and smaller 

banks would have been greater but for the growth in 

the number of smaller banks that have elected 

Subchapter S corporation status. A Subchapter S 

corporation is generally not subject to federal taxes 

at the corporate level1, and its net income can there1See Notes to Users, p.21. 

NUMBER OF SUBCHAPTER S CORPORATIONS, 

1997–1999 

Number of Institutions 

1,030 1,035 1,038 1,044 

1,253 

586 600 568 574 

1 2 3 4 1 2 3 4 1 

1997 1998 1999 

fore be as much as one-third higher than the income 

of a comparable bank that does not have Subchapter S status. As of March 31, 1999, almost one 

in five banks (18 percent) with less than $100 million 

in assets had elected Subchapter S status. If 

Subchapter S corporations are excluded, the ROA 

gap between smaller and larger banks in the first 

quarter would have been 33 basis points. 

RETURN ON ASSETS (ROA) SUBCHAPTER S 

CORPORATIONS VS. OTHER BANKS, 

1997–1999 

Return on Assets 

2.5 

2.0 

1.5 

1.0 

0.5 

All Other Banks with Assets <$1 Billion 1.21 

Subchapter S Corporations 1.66 

1 2 3 4 1 2 3 4 1 

1997 1998 1999 

The annualized net charge-off rate on all loans and 

leases was 0.62 percent, the same as in the first 

quarter of 1998. Loan losses were mostly limited to 

credit cards and commercial and industrial loans; 

only commercial and industrial loans had a significant year-to-year increase in net charge-offs. Total 

net charge-offs were up by $341 million (7.3 percent), as net charge-offs on commercial and industrial loans increased by $429 million (73.6 percent). 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 First Quarter 1999 
CREDIT CARD LOSS RATES AND PERSONAL 

BANKRUPTCY FILINGS, 1984–1999 

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

'84 '86 '88 '90 '92 '94 '96 '98 '99

 0

 1

 2

 3

 4

 5

 6

 7 

50 

100 

150 

200 

250 

300 

350 

400 

Personal 

Bankruptcy 

Filings 

Credit Card Charge-Off Rates 

Sources: Bankruptcies—Administrative Office of the United States Courts 

Charge-Off Rates—Commercial Bank Call Reports 

The net charge-off rate on commercial and industrial loans of 0.44 percent was up from 0.29 percent a 

year ago; the loss rate on credit-card loans fell from 

5.15 percent to 4.94 percent. Credit cards accounted for 53.6 percent of all net charge-offs in the first 

quarter, even though credit-card loans represent 

less than 7 percent of all commercial bank loans. 

Noncurrent loans rose by $978 million during the 

first quarter, to 0.99 percent of total loans. For the 

twelve months ended March 31, they were up by 

$2.7 billion (9.2 percent). Here too, commercial and 

industrial loans accounted for much of the increase. 

Noncurrent commercial and industrial loans rose by 

$1.3 billion during the quarter, and were $2.2 billion 

(28.3 percent) higher than a year ago. The percentage of commercial and industrial loans that 

were noncurrent rose to 1.10 percent, from 0.99 percent at the end of 1998, and 0.97 percent at the end 

of the first quarter of 1998. No other loan category 

experienced a comparable increase in noncurrent 

loans. 

Total assets of commercial banks registered a seasonal decline of $31.4 billion, as balances due from 

depository institutions fell by $19.1 billion. Total 

loans and leases increased by $12.5 billion, their 

smallest quarterly increase in two years. Commercial and industrial loans increased by $23.0 billion during the quarter, the largest growth of any 

loan category. Loans secured by commercial realestate properties rose by $9.5 billion, leases grew 

by $7.9 billion, loans to depository institutions were 

up by $6.9 billion, and loans for real-estate construction and development increased by $5.2 billion. 

Residential mortgage loans declined by $16.6 billion, and credit-card loans had a seasonal decline of 

$20.9 billion. Banks increased their holdings of U.S. 

Treasury securities by $13.0 billion, while their mortgage-backed securities declined by $14.4 billion. 

During the past 12 months, total assets of commercial banks increased by 5.9 percent. Loans and 

leases were up by 7.5 percent, while banks’ securities portfolios grew by 9.9 percent. 

Bank deposits declined by $44.3 billion during the 

first quarter. Demand deposits fell by $53.4 billion, 

and time deposits dropped by $7.3 billion, while savings deposits increased by $13.7 billion, and 

deposits in foreign offices rose by $2.7 billion. The 

decline in deposits was partially offset by increases 

in long-term (>1 year) nondeposit borrowings (up 

$10.9 billion), and short-term fed funds purchased 

(up $10.3 billion). The share of funding supplied by 

core deposits has been declining steadily for over 6 

years, as banks have become increasingly dependent on volatile liabilities. 

Equity capital increased by $7.4 billion in the first 

quarter, despite a $3.6-billion decline in unrealized 

gains on available-for-sale securities. Retained 

earnings of $8.9 billion set a new quarterly record, 

as cash dividends were 16.0 percent lower than a 

year ago. Goodwill increased by $1.0 billion during 

the quarter, and mortgage servicing assets rose by 

$2.4 billion. The industry’s equity-to-assets ratio 

increased from 8.49 percent to 8.68 percent during 

the quarter, while the core capital (leverage) ratio 

increased from 7.56 percent to 7.68 percent. 

Commercial banks’ loss reserves increased by $612 

million, as banks set aside $409 million more in provisions for credit losses than they charged-off. The 

ratio of reserves to total loans and leases rose by 1 

basis point, from a 12-year low of 1.77 percent to 

1.78 percent. The “coverage ratio” declined to $1.80 

in reserves for every $1 in noncurrent loans, from 

$1.83 at the end of 1998. 

The number of insured commercial banks reporting 

financial results declined from 8,774 to 8,721 during 

the first quarter. There were 64 new charters, while 

114 banks were absorbed by mergers, and one 

bank failed. The number of banks on the FDIC’s 

“Problem List” declined from 69 to 64 during the 

quarter, and “problem” bank assets fell from $5.4 billion to $4.7 billion. 

FDIC Quarterly Banking Profile 

First Quarter 1999 3 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

1999* 1998* 1998 1997 1996 1995 1994 

Return on assets (%)............................................. 1.32 1.26 1.19 1.23 1.19 1.17 1.15 

Return on equity (%)............................................. 15.41 15.02 13.94 14.69 14.45 14.66 14.61 

Core capital (leverage) ratio (%).............................. 7.68 7.56 7.54 7.56 7.64 7.61 7.64 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.67 0.67 0.65 0.66 0.75 0.85 1.01 

Net charge-offs to loans (%).................................... 0.62 0.62 0.67 0.64 0.58 0.49 0.50 

Asset growth rate (%).......................................... 5.88 10.08 8.50 9.54 6.16 7.53 8.21 

Net interest margin (%).......................................... 4.05 4.06 4.07 4.21 4.27 4.29 4.36 

Net operating income growth (%)........................... 18.58 4.75 2.30 12.47 6.43 7.48 16.18 

Number of institutions reporting.............................. 8,721 9,023 8,774 9,142 9,527 9,940 10,451 

Percentage of unprofitable institutions (%)............... 6.00 4.56 6.01 4.85 4.27 3.55 3.98 

Number of problem institutions.............................. 64 68 69 71 82 144 247 

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

Number of failed/assisted institutions........................ 1 0 3 1 5 6 11 

* Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 31. 

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

(dollar figures in millions) 

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

Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

1999 1998 1998 98:1-99:1 

8,721 8,774 9,023 -3.3 

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

CONDITION DATA

1,619,398 1,627,047 1,557,251 4.0 

 Total assets..................................................................... $5,409,723 $5,441,101 $5,109,096 5.9

 Loans secured by real estate.......................................... 1,346,292 1,345,502 1,273,776 5.7

 Commercial & industrial loans.......................................... 921,734 898,723 819,121 12.5

 Loans to individuals...................................................... 548,536 570,959 542,136 1.2

 Farm loans.................................................................. 43,956 46,249 43,052 2.1

 Other loans & leases...................................................... 394,092 381,011 349,711 12.7

 Less: Unearned income................................................... 3,663 4,032 4,328 -15.4

 Total loans & leases...................................................... 3,250,948 3,238,411 3,023,468 7.5

 Less: Reserve for losses................................................... 57,858 57,246 55,200 4.8

 Net loans and leases...................................................... 3,193,089 3,181,165 2,968,268 7.6

 Securities........................................................................ 995,427 979,704 905,405 9.9

 Other real estate owned................................................... 3,136 3,149 3,734 -16.0

 Goodwill and other intangibles.......................................... 83,300 80,195 66,201 25.8

 All other assets............................................................... 1,134,772 1,196,889 1,165,488 -2.6 

Total liabilities and capital................................................... 5,409,723 5,441,101 5,109,096 5.9

 Noninterest-bearing deposits............................................. 667,305 719,979 665,486 0.3

 Interest-bearing deposits.................................................. 2,969,880 2,961,493 2,801,908 6.0

 Other borrowed funds...................................................... 936,300 903,095 854,909 9.5

 Subordinated debt............................................................ 73,360 72,785 66,176 10.9

 All other liabilities............................................................ 293,287 321,578 290,828 0.8

 Equity capital.................................................................. 469,592 462,172 429,788 9.3 

Loans and leases 30-89 days past due................................. 39,067 40,837 38,882 0.5 

Noncurrent loans and leases................................................ 32,226 31,248 29,505 9.2 

Restructured loans and leases............................................. 1,531 1,845 2,104 -27.2 

Direct and indirect investments in real estate........................... 518 506 550 -5.8 

1-4 Family residential mortgages.......................................... 748,692 765,306 736,912 1.6 

Mortgage-backed securities................................................ 455,688 470,062 402,398 13.2 

Earning assets.................................................................. 4,673,846 4,675,710 4,413,454 5.9 

Long-term assets (5+ years)................................................ 1,060,592 1,019,478 837,673 26.6 

Volatile liabilities............................................................... 1,750,259 1,723,786 1,646,646 6.3 

Foreign office deposits...................................................... 574,726 572,034 528,573 8.7 

FHLB Advances (Source: FHFB).......................................... 105,571 104,110 65,394 61.4 

Unused loan commitments................................................ 3,748,712 3,699,167 3,283,519 14.2 

Off-balance-sheet derivatives............................................. 33,198,418 33,374,593 26,726,750 24.2 

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 

Full Year Full Year 1st Quarter 1st Quarter %Change 

1998 1997 %Change 1999 1998 98:1-99:1 

$362,028 $339,547 6.6 $90,254 $88,544 1.9 

179,268 165,040 8.6 42,866 44,230 -3.1

182,760 174,507 4.7 47,388 44,315 6.9 

22,189 19,850 11.8 5,414 4,833 12.0 

123,702 104,498 18.4 34,722 29,061 19.5 

194,120 169,984 14.2 49,633 45,716 8.6 

3,127 1,842 69.8 565 795 -28.9 

31,966 31,873 0.3 9,622 8,240 16.8 

507 19 N/M -33 538 N/M

61,820 59,160 4.5 17,973 15,918 12.9 

20,708 18,316 13.1 5,005 4,664 7.3 

41,102 42,541 -3.4 9,095 10,828 -16.0

59,266 57,932 2.3 17,623 14,862 18.6 

N/M - Not meaningful 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 First Quarter 1999 
TABLE III-A. First Quarter 1999, FDIC-Insured Commercial Banks 

FIRST 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 

8,721 5,375 2,956 317 73 684 1,440 1,897 2,252 1,502 946 

Total assets (in billions).................................... $5,409.7 $250.5 $727.1 $901.2 $3,530.9 $1,922.4 $1,206.6 $873.6 $371.7 $302.8 $732.7 

Total deposits (in billions)................................. 3,637.2 214.2 598.2 619.0 2,205.8 1,182.6 796.9 600.6 272.0 246.9 538.2 

Net income (in millions).................................... 17,973 687 2,356 3,920 11,010 6,357 3,801 2,986 1,423 805 2,603 

% of unprofitable institutions.............................. 6.0 8.8 1.5 1.9 1.4 6.3 8.3 4.1 3.8 6.2 11.2 

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

Performance ratios (annualized, %) 

52.8 46.6 62.0 67.8 72.6 63.5 56.4 54.8 47.6 47.4 57.0 

Yield on earning assets.................................... 7.72 7.82 7.90 8.09 7.57 7.86 7.55 7.53 7.99 7.41 7.89 

Cost of funding earning assets........................... 3.67 3.50 3.44 3.48 3.78 4.13 3.52 3.65 3.52 3.16 3.08 

Net interest margin.......................................... 4.05 4.32 4.46 4.61 3.79 3.73 4.03 3.88 4.47 4.25 4.81 

Noninterest income to earning assets.................. 2.97 1.45 1.71 3.68 3.18 3.98 2.44 2.36 2.57 1.48 2.92 

Noninterest expense to earning assets.................. 4.25 3.95 3.82 4.61 4.26 4.70 4.05 3.67 4.00 3.73 4.49 

Credit loss provision to assets........................... 0.40 0.20 0.30 0.60 0.38 0.44 0.29 0.31 0.50 0.32 0.56 

Net operating income to assets........................... 1.30 1.10 1.29 1.69 1.21 1.30 1.22 1.33 1.50 1.03 1.38 

Return on assets............................................. 1.32 1.10 1.30 1.71 1.24 1.32 1.26 1.36 1.52 1.06 1.41 

Return on equity............................................. 15.41 9.94 13.60 17.78 15.64 16.75 13.71 16.10 17.26 11.95 14.89 

Net charge-offs to loans and leases..................... 0.62 0.17 0.35 0.82 0.65 0.84 0.44 0.40 0.71 0.43 0.70 

Credit loss provision to net charge-offs.................. 108.20 195.83 143.48 114.66 100.25 99.21 105.40 120.24 106.65 132.24 120.83 

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

Condition Ratios (%) 

58.42 67.79 60.92 52.90 59.11 59.01 59.99 57.38 55.66 63.20 55.57 

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

Loss allowance to: 

86.40 92.24 92.12 89.65 83.97 82.78 87.77 89.43 91.03 89.82 86.26 

Loans and leases.......................................... 1.78 1.48 1.52 2.06 1.78 2.04 1.46 1.49 1.74 1.40 2.25 

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

Noncurrent assets plus 

179.54 133.53 173.66 208.64 176.19 160.03 177.06 183.32 202.25 130.03 243.19 

other real estate owned to assets..................... 0.67 0.75 0.64 0.69 0.67 0.76 0.59 0.58 0.63 0.68 0.70 

Equity capital ratio............................................. 8.68 11.06 9.60 9.79 8.04 7.94 9.20 8.57 8.92 8.93 9.66 

Core capital (leverage) ratio.............................. 7.68 10.85 9.22 8.61 6.91 7.24 7.79 7.76 8.35 8.10 8.08 

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

Structural Changes 

87.79 66.47 73.38 91.85 92.63 83.10 94.69 95.10 89.46 66.92 88.45 

New Charters................................................ 64 61 1 1 1 8 21 9 9 9 8 

Banks absorbed by mergers........................... 114 68 40 5 1 23 27 12 23 20 9 

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

PRIOR FIRST QUARTERS

 (The way it was...) 

1 1 0 0 0 0 1 0 0 0 0 

Number of institutions................................1998 9,023 5,742 2,918 298 65 708 1,480 1,970 2,309 1,579 977

 ...............................................1996 9,838 6,582 2,835 349 72 785 1,640 2,158 2,471 1,743 1,041

 ...............................................1994 10,840 7,674 2,787 325 54 870 1,807 2,383 2,686 1,920 1,174 

Total assets (in billions).............................1998 $5,109.1 $263.8 $729.0 $899.7 $3,216.6 $1,894.1 $1,017.0 $813.7 $336.7 $363.3 $684.2

 ................................................1996 4,308.4 295.7 692.1 1,081.2 2,239.4 1,620.2 750.5 689.4 284.5 327.5 636.2

 ................................................1994 3,843.2 330.6 682.2 1,062.5 1,767.9 1,497.3 608.3 625.9 250.6 296.8 564.4 

Return on assets (%)................................1998 1.26 1.19 1.37 1.72 1.11 1.19 1.16 1.32 1.48 1.21 1.41

 ................................................1996 1.12 1.21 1.30 1.28 0.97 0.90 1.18 1.17 1.37 1.28 1.35

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

Net charge-offs to loans & leases (%) 

1.17 1.14 1.19 1.43 1.01 1.12 1.20 1.16 1.42 1.23 1.16 

 ................................................1998 0.62 0.17 0.28 1.04 0.61 0.89 0.37 0.37 0.72 0.33 0.77

 ................................................1996 0.55 0.17 0.34 0.86 0.49 0.68 0.42 0.39 0.64 0.24 0.68

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

Noncurrent assets plus 

0.48 0.13 0.27 0.68 0.50 0.74 0.24 0.28 0.41 0.07 0.58 

OREO to assets (%)..............................1998 0.67 0.75 0.66 0.76 0.65 0.77 0.58 0.60 0.65 0.55 0.71

 ................................................1996 0.86 0.85 0.82 0.88 0.87 1.02 0.67 0.67 0.70 0.64 1.07

 ................................................1994 1.46 1.02 1.24 1.36 1.69 1.91 0.98 0.87 0.97 0.84 1.96 

Equity capital ratio (%)..............................1998 8.41 10.88 9.61 9.58 7.61 7.44 8.71 8.60 9.12 8.71 9.92

 ................................................1996 8.20 10.42 9.41 8.85 7.22 7.65 8.38 8.50 8.86 8.60 8.57

 ................................................1994 7.83 9.85 8.87 8.27 6.78 7.12 7.99 8.07 8.72 8.31 8.60 

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 

First Quarter 1999 5 FDIC-Insured Commercial Banks 
TABLE IV-A. Full Year 1998, FDIC-Insured Commercial Banks 

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- South 

west west West 

8,774 5,409 2,973 321 71 693 1,445 1,904 2,265 1,517 950 

Total assets (in billions).................................... $5,441.1 $252.4 $726.8 $921.7 $3,540.2 $1,920.9 $1,211.5 $889.3 $376.5 $304.7 $738.3 

Total deposits (in billions)................................. 3,681.5 215.9 600.8 632.7 2,232.0 1,180.7 810.5 621.7 275.3 250.4 542.9 

Net income (in millions).................................... 61,820 2,728 8,963 13,137 36,992 20,028 15,084 10,462 5,315 3,275 7,657 

% of unprofitable institutions.............................. 6.0 8.5 2.1 1.9 1.4 7.6 9.3 4.0 2.6 5.9 11.9 

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

Performance Ratios (%) 

61.5 55.8 71.1 65.7 71.8 67.7 61.2 63.3 58.4 59.0 65.2 

Yield on earning assets.................................... 8.07 8.22 8.29 8.50 7.90 8.12 7.79 7.95 8.44 7.86 8.48 

Cost of funding earning assets........................... 4.00 3.71 3.71 3.81 4.13 4.53 3.72 3.95 3.82 3.41 3.48 

Net interest margin.......................................... 4.07 4.51 4.58 4.69 3.76 3.59 4.07 4.00 4.62 4.45 5.00 

Noninterest income to earning assets.................. 2.76 1.64 1.73 3.16 2.96 3.41 2.38 2.24 2.69 1.61 2.89 

Noninterest expense to earning assets.................. 4.33 4.17 3.90 4.64 4.35 4.57 4.02 3.85 4.23 4.00 5.02 

Credit loss provision to assets........................... 0.43 0.26 0.33 0.67 0.40 0.44 0.30 0.33 0.52 0.27 0.71 

Net operating income to assets........................... 1.14 1.13 1.29 1.43 1.03 1.00 1.23 1.23 1.48 1.09 1.08 

Return on assets............................................. 1.19 1.14 1.31 1.52 1.08 1.06 1.31 1.25 1.50 1.13 1.11 

Return on equity............................................. 13.94 10.10 13.54 15.96 13.80 14.07 14.46 14.70 16.64 12.38 11.37 

Net charge-offs to loans and leases..................... 0.67 0.30 0.39 1.02 0.65 0.91 0.43 0.44 0.74 0.43 0.86 

Credit loss provision to net charge-offs.................. 104.84 147.45 136.07 102.32 100.74 90.78 110.72 116.40 105.92 116.19 123.47 

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

Condition Ratios (%) 

61.02 67.33 61.03 56.03 62.14 62.71 59.69 60.15 56.75 64.27 60.84 

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

Loss allowance to:

85.93 91.65 91.73 89.26 83.47 82.77 87.24 88.38 90.22 89.35 85.48 

 Loans and leases.......................................... 1.77 1.45 1.49 2.04 1.77 2.04 1.45 1.48 1.68 1.37 2.22

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

Noncurrent assets plus

183.20 140.67 175.86 198.92 183.03 159.12 188.55 184.36 215.20 147.37 244.03 

 other real estate owned to assets..................... 0.65 0.71 0.62 0.71 0.64 0.78 0.54 0.56 0.57 0.59 0.67 

Equity capital ratio............................................. 8.49 10.95 9.52 9.46 7.86 7.81 9.10 8.27 8.72 8.83 9.29 

Core capital (leverage) ratio.............................. 7.54 10.79 9.18 8.43 6.75 7.01 7.74 7.70 8.37 8.10 7.81 

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

Structural Changes 

86.41 66.33 72.18 90.99 90.89 83.30 91.77 91.59 89.80 65.73 87.06 

New charters................................................ 190 183 6 1 0 19 60 24 18 23 46 

Banks absorbed by mergers........................... 557 265 247 39 6 33 196 120 80 66 62 

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

PRIOR FULL YEARS 

(The way it was...) 

3 2 1 0 0 0 0 1 0 0 2 

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

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

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

Total assets (in billions).............................1997 $5,015.0 $267.8 $727.8 $902.7 $3,116.7 $1,893.9 $946.9 $804.8 $335.0 $355.9 $678.4

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

 ................................................1993 3,706.2 335.1 676.9 1,063.7 1,630.5 1,399.6 594.8 612.4 251.3 293.8 554.3 

Return on assets (%)................................1997 1.23 1.18 1.34 1.36 1.18 1.14 1.23 1.29 1.43 1.22 1.35

 ................................................1995 1.17 1.18 1.24 1.27 1.10 1.02 1.19 1.15 1.50 1.20 1.41

 ................................................1993 

Net charge-offs to loans & leases (%)

1.20 1.14 1.17 1.31 1.16 1.12 1.20 1.28 1.44 1.39 1.11 

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

 ................................................1995 0.49 0.24 0.37 0.69 0.46 0.64 0.32 0.31 0.54 0.24 0.62

 ................................................1993 

Noncurrent assets plus 

0.85 0.35 0.51 0.92 1.02 1.27 0.43 0.51 0.61 0.28 0.96 

OREO to assets (%)...............................1997 0.66 0.71 0.65 0.77 0.63 0.73 0.59 0.58 0.69 0.52 0.72

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

 ................................................1993 1.61 1.05 1.29 1.43 1.97 2.16 1.08 0.93 0.99 0.92 2.19 

Equity capital ratio (%)..............................1997 8.33 10.81 9.62 9.16 7.58 7.33 8.87 8.35 9.06 8.65 9.82

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

 ................................................1993 8.00 9.76 8.74 8.13 7.25 7.48 8.02 8.12 8.67 8.26 8.73 

FDIC Quarterly Banking Profile 

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

March 31, 1999 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate........................... 1.15 1.54 1.11 1.12 1.14 1.18 1.00 1.28 1.30 1.51 1.01 

Construction and development........................... 1.44 1.20 1.05 1.70 1.52 1.18 1.22 2.04 1.52 1.69 1.19 

Commercial real estate.................................... 0.96 1.17 0.85 1.00 0.96 0.98 0.86 1.12 0.95 1.22 0.78 

Multifamily residential real estate........................ 1.36 0.88 0.78 0.70 1.97 0.66 3.37 1.13 0.90 1.12 0.54 

Home equity loans.......................................... 0.79 0.93 0.81 0.85 0.76 0.87 0.55 0.94 0.74 0.83 0.89 

Other 1-4 Family residential.............................. 1.23 1.78 1.37 1.14 1.16 1.28 0.96 1.32 1.42 1.72 1.31 

Commercial and industrial loans*........................... 0.95 2.21 1.64 1.27 0.68 0.62 0.90 1.17 1.89 1.80 0.89 

Loans to individuals............................................. 2.22 2.28 2.02 2.11 2.29 2.49 2.38 2.05 2.17 1.63 1.72 

Credit card loans............................................. 2.41 2.38 3.56 2.34 2.35 2.67 2.33 2.37 2.50 1.28 1.82 

Other loans to individuals................................. 2.10 2.27 1.73 1.86 2.25 2.31 2.39 1.97 1.90 1.64 1.61 

All other loans and leases (including farm)............... 0.59 N/A N/A 1.17 0.55 0.42 0.47 1.10 0.79 0.89 0.48 

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

Percent of Loans Noncurrent** 

0.49 0.63 0.75 0.61 0.47 0.33 0.40 1.00 0.67 1.75 0.22 

All real estate loans............................................. 0.88 0.87 0.71 0.83 0.96 1.18 0.77 0.74 0.67 1.00 0.84 

Construction and development........................... 0.89 0.71 0.71 0.83 1.04 1.24 0.78 0.75 0.87 0.87 1.10 

Commercial real estate.................................... 0.92 0.87 0.73 0.93 1.03 1.30 0.85 0.80 0.57 1.11 0.84 

Multifamily residential real estate........................ 0.93 0.61 0.65 0.58 1.24 0.70 1.90 0.68 0.34 0.61 0.69 

Home equity loans.......................................... 0.39 0.46 0.44 0.50 0.36 0.56 0.28 0.42 0.31 0.35 0.39 

Other 1-4 Family residential.............................. 0.81 0.77 0.67 0.82 0.85 0.96 0.71 0.75 0.62 0.90 0.87 

Commercial and industrial loans*........................... 1.10 1.65 1.32 1.01 1.00 1.21 0.86 1.02 1.23 1.60 1.09 

Loans to individuals............................................. 1.51 0.88 0.82 1.42 1.72 2.24 1.14 0.92 1.09 0.52 1.48 

Credit card loans............................................. 2.21 1.91 1.99 2.14 2.27 2.47 1.48 2.20 1.66 0.82 2.43 

Other loans to individuals................................. 1.08 0.83 0.60 0.63 1.37 2.01 1.03 0.62 0.62 0.51 0.38 

All other loans and leases (including farm)............... 0.45 N/A N/A 0.48 0.47 0.43 0.53 0.46 0.47 1.01 0.31 

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

Percent of Loans Charged-off (net, annual) 

0.47 0.42 0.32 0.47 0.48 0.22 0.35 0.29 0.22 2.39 0.72 

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

Construction and development........................... 0.03 0.04 0.02 0.01 0.03 -0.03 0.08 0.00 0.05 0.00 -0.02 

Commercial real estate.................................... 0.00 0.04 0.01 -0.03 0.01 -0.10 0.06 0.00 0.00 0.09 -0.02 

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

Home equity loans.......................................... 0.16 0.01 0.03 0.25 0.16 0.21 0.17 0.16 0.14 0.54 0.06 

Other 1-4 Family residential.............................. 0.07 0.03 0.05 0.09 0.07 0.06 0.06 0.07 0.08 0.10 0.10 

Commercial and industrial loans*........................... 0.44 0.24 0.39 0.30 0.47 0.48 0.46 0.30 0.27 0.50 0.57 

Loans to individuals............................................. 2.54 0.60 1.66 2.98 2.63 3.25 1.75 1.74 2.89 1.04 3.06 

Credit card loans............................................. 4.94 2.32 7.18 4.88 4.81 5.05 4.41 5.25 5.25 2.59 4.79 

Other loans to individuals................................. 1.02 0.52 0.60 0.83 1.23 1.29 0.84 0.94 0.82 0.97 1.01 

All other loans and leases (including farm)............... 0.25 N/A N/A 0.21 0.28 0.17 0.27 0.32 0.42 0.71 0.18 

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

Loans Outstanding (in billions) 

-0.06 0.48 -0.94 0.02 -0.05 -0.16 0.01 0.05 0.00 0.02 -0.09 

All real estate loans............................................. $1,346.3 $81.7 $277.5 $282.3 $704.9 $323.3 $386.0 $261.5 $109.7 $75.6 $190.3 

Construction and development........................... 111.9 6.1 26.3 27.3 52.2 12.3 38.9 21.6 10.0 9.6 19.6 

Commercial real estate.................................... 380.5 22.7 98.9 87.9 170.9 70.6 104.8 78.8 29.5 27.8 68.9 

Multifamily residential real estate........................ 45.4 1.7 9.1 11.6 23.0 12.2 10.0 9.1 3.3 2.1 8.8 

Home equity loans.......................................... 95.6 1.8 11.6 18.0 64.3 20.7 29.4 22.8 4.7 1.0 16.9 

Other 1-4 Family residential.............................. 653.1 38.7 120.1 133.9 360.4 180.2 197.2 121.9 52.6 31.8 69.5 

Commercial and industrial loans........................... 921.7 24.8 81.6 126.7 688.6 317.6 197.4 165.5 56.3 45.3 139.7 

Loans to individuals............................................. 548.5 20.6 63.1 134.8 330.0 196.2 111.5 82.6 49.2 32.1 76.9 

Credit card loans............................................. 207.9 0.9 10.0 70.2 126.8 99.5 27.6 15.7 22.5 1.3 41.3 

Other loans to individuals................................. 340.6 19.8 53.0 64.6 203.2 96.6 83.9 66.9 26.7 30.8 35.6 

All other loans and leases (including farm)............... 438.0 17.9 24.5 37.2 358.5 167.7 71.6 70.6 32.4 15.1 80.7 

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

Memo: Other Real Estate Owned (in millions) 

36.8 0.2 1.0 2.8 32.8 11.8 8.6 4.0 2.5 1.8 8.1 

All other real estate owned................................. $3,135.6 $277.2 $756.5 $492.8 $1,609.2 $929.2 $798.9 $378.4 $199.6 $256.2 $573.4 

Construction and development........................... 263.9 22.7 126.0 42.6 72.6 51.3 104.2 23.5 23.1 16.9 45.0 

Commercial real estate.................................... 1,362.7 119.8 333.9 230.2 678.8 371.3 287.4 150.1 72.4 146.6 334.9 

Multifamily residential real estate........................ 74.8 7.6 18.9 24.3 24.0 31.1 16.3 5.5 6.5 1.6 13.7 

1-4 Family residential....................................... 1,141.1 97.0 251.0 189.6 603.5 246.7 380.8 192.4 78.8 70.8 171.6 

Farmland...................................................... 67.1 30.0 26.7 6.0 4.4 3.7 10.1 6.8 18.8 20.3 7.4 

Other real estate owned in foreign offices............ 226.0 0.0 0.0 0.1 225.9 225.1 0.0 0.0 0.0 0.0 0.8 

* 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 

First Quarter 1999 7 FDIC-Insured Commercial Banks 
0 

SAVINGS INSTITUTION PERFORMANCE—FIRST QUARTER, 1999 

• The Industry Earns $2.7 Billion In First Quarter 

• Asset Growth Remains Strong 

• Smaller Institutions Are Hurt By Falling Asset Yields 

• Quality Improvement Is Reflected In Reduced Net Charge-Offs 

FDIC-insured savings institutions reported $2.7 billion in earnings for the first quarter, up by $661 million from the fourth quarter of 1998 and up by $100 

million from the first quarter a year ago. This was 

the third-highest quarterly earnings reported by the 

industry. Net interest income improved by $267 

million over the previous quarter and by $249 million over a year ago. This improvement was mainly the result of a $63.8-billion (6.6 percent) 

increase in interest-earning assets during the past 

12 months. Noninterest income, at $2.3 billion, 

was $89 million higher than in the previous quarter 

and $399 million higher than a year ago, primarily 

because of increased fee income. Noninterest 

expenses, at $6.1 billion, were $589 million lower 

than in last quarter, when they were boosted by 

merger-related charges, but they were $334 million 

(6 percent) higher than a year ago. 

QUARTERLY NET INCOME, 1995–1999 

$ Billions 

Securities and Other Gains, Net 

Net Operating Income 

2.4 

1.8 

2.8 

1.9 

2.2 

2.5 2.6 

-0.0 

2.2 

2.4 

2.0 

2.3 

2.6 

3.0 

2.0 

2.7 

1.7 

1 23 4 12 3 4 1234 12 34 1 

1995 1996 1997 1998 1999 

The industry’s average annualized return on 

assets (ROA) for the first quarter was 0.98 percent, 

slightly lower than the first quarter of 1998 when 

thrifts registered an ROA of 1.01 percent. Small 

thrifts, with less than $100 million in assets, did not 

keep pace with the rest of the industry. These institutions reported an ROA of 0.65 percent for the first 

quarter, down from 0.79 percent a year ago. Asset 

yields at smaller thrifts have fallen almost twice as 

fast (45 basis points) as the cost of funding earning assets (23 basis points) over the past 12 

months, resulting in a 14 percent decline in net 

interest income. Just 36 percent of these thrifts 

reported higher earnings than in the first quarter of 

1998, while over half of the remaining thrifts in the 

industry reported earnings gains. 

The growth in earning assets during the first quarter was $22.8 billion, leading to higher net interest 

income, as net interest margins rose slightly. Net 

interest margins improved to 3.08 percent from 

3.05 percent in the fourth quarter of 1998, but were 

10 basis points lower than a year ago. For three 

quarters in a row, both asset yields and the cost of 

funding earning assets have declined. In the first 

quarter, asset yields fell by 18 basis points while 

the cost of funding earning assets declined by 21 

basis points. Net interest margins improved in all 

regions and in all size groups, except for the group 

of savings institutions with assets of $100 million or 

less, where margins declined from 3.35 percent 

last quarter to 3.32 percent this quarter. 

Only two regions reported an ROA of less than 

1.00 percent this quarter. The Northeast Region, 

with $366 billion in industry assets, reported an 

QUARTERLY NET INTEREST MARGINS, 

1995–1999 Net Interest Margin (%) 

4.5 

4.0 

3.5 

3.0 

2.5 

Assets > $100 Million 3.07 

Assets < $100 Million 3.32 

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

1995 1996 1997 1998 1999 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 First Quarter 1999 
ROA of 0.92 percent while the Midwest Region, 

with $38 billion in assets, had an ROA of 0.75 percent. The ROA for the Northeast Region, which 

represents one-third of industry assets, was affected by higher restructuring charges. Noninterest 

expenses of savings institutions in the Northeast 

Region were 11 percent higher than a year ago. 

Provisions for credit losses fell to $396 million in 

the first quarter, the smallest amount since quarterly reporting of this expense began in 1987. 

During the quarter, 56 savings institutions took 

negative provisions for credit losses, converting 

$6.6 million from reserves back into income. 

Despite the low level of provisions, this expense 

represented 145 percent of net charge-offs. Net 

charge-offs of $273 million were 0.15 percent of 

loans this quarter, the lowest level since reporting 

began in 1990. Net recoveries from charged-off 

loans (negative charge-offs) were reported by 282 

savings institutions. These net recoveries added 

$24.2 million to industry reserves with one institution accounting for $9.3 million of the total.1 

Total industry reserves for loan losses rose by $72 

million to almost $7 billion, while noncurrent loans 

declined by $221 million. Thus, the coverage ratio 

—loan-loss reserves to noncurrent loans— 

improved to $1.16 in reserves for each dollar of 

noncurrent loans. This was the tenth consecutive 

record level for this ratio. 

1 Washington Mutual Bank, Stockton, California, reported a negative $9.3 million for net charge-offs in the first quarter primarily 

because of recoveries on commercial real-estate loans. 

The industry added $21.7 billion in assets during 

the first quarter, with most of the increase coming 

from purchases of mortgage-backed securities 

(MBS), which increased by $15.5 billion. Other 

securities accounted for $3.0 billion of the increase 

in assets, while loans increased by $5.1 billion and 

cash balances declined by $4.2 billion. The increase in loans was not in the usual residential 

mortgage portfolio, but in consumer loans and 

commercial lending. Consumer loans other than 

credit-card loans showed the largest increase, of 

$1.9 billion; commercial and industrial loans 

increased by $1.3 billion; commercial real-estate 

loans increased by $1.2 billion; and real-estate 

construction and land loans increased by $1.1 billion. 

Asset growth was funded primarily with borrowings 

other than deposits in the first quarter. Deposits 

declined by $5.5 billion, while other borrowed 

funds grew by $24.1 billion. Federal Home Loan 

Bank advances accounted for $9.8 billion of the 

growth in other borrowed funds, and almost half 

(48 percent) of the increase in total liabilities. 

Equity capital increased by $1.2 billion, but the 

industry’s equity capital ratio showed a small 

decline during the quarter. Equity capital, as a percent of assets, declined from 8.68 percent to 8.62 

percent. Equity growth was limited by a $614-million decline in unrealized gains on available-forsale securities. In contrast, the core capital ratio, 

which excludes unrealized gains or losses on 

available-for-sale securities, rose 2 basis points to 

7.87 percent of tangible assets. 

COVERAGE RATIO* AND RESERVE LEVELS, 

1994–1999 RISK-BASED CAPITAL RATIOS, 

$ Billions Coverage Ratio (%) 1993–1999 Ratios (%) 30 120 

 18 

 100 16

 80 14

 24

 18

 60 12

 12

 10 40

 8 6

 20

 6

 0 0

 4

*Loan-loss reserves to noncurrent loans. 

Noncurrent Loans ($) 

Loan-Loss Reserves ($)

Coverage Ratio (%) 

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

Total Risk-Based Capital 

Tier 1 Risk-Based Capital 

Equity to Assets 

Core Capital (Leverage) 

1993 1994 1995 1996 1997 1998 1999 

FDIC Quarterly Banking Profile 

First Quarter 1999 9 FDIC-Insured Savings Institutions
The number of thrifts reporting financial results 

totaled 1,669 at the end of the first quarter, 

down by 20 from year-end 1998. Most of the 

decline occurred because of 27 mergers, which 

were partially offset by 8 new charters. Within 

the industry, 13 thrifts with $7.8 billion in assets 

were absorbed. Commercial banks absorbed 

14 thrifts with $5 billion in assets. 

During the first quarter, 15 thrifts, with $10.7 billion in assets, converted from mutual to stock 

ownership. One conversion consisted of a merger with a stock-owned institution. For the tenth 

consecutive quarter in a row, no insured savings institution failed. The number of “problem” 

institutions rose to 16 from 15 at year-end, but 

assets of this group declined to $5.0 billion from 

$5.9 billion. 

NONCURRENT LOAN RATES,* 

MARCH 31, 1999 

West Midwest 

VT: 1.2 

NH: 0.6 

MA: 0.5 

RI: 1.0 

CT: 0.7 

NJ: 2.8 

DE: 0.7 

MD: 2.4 

DC: 1.8 

Greater than 1.5% 

Between .75% and 1.5% 

AK AL 

AZ 

AR 

CA CO KS 

NM 

FL 

GA HI 

ID 

IL IN 

IA 

KY 

LA 

ME 

MI 

MN 

MS 

MO 

MT 

NE 

NV 

NY 

NC 

ND 

OH 

OK 

OR 

PA 

SC 

SD 

TN 

TX 

UT 

VA 

WA 

WV 

WI 

WY 

PR 

Northeast 

Southeast 

Central 

Southwest 

0.0 0.7 

1.5 

0.6 

0.8 0.5 

0.8 

0.8 2.1 

0.6 

0.2 

0.8 1.0 

0.4 1.2 

0.4 

0.4 

0.6 

0.9 

0.9 

1.2 

0.5 

0.6 

0.5 

0.7 

0.9 

1.0 

0.7 

0.6 

0.3 

0.8 

N/A 

0.5 

0.8 

0.7 

1.1 

1.2 

0.5 

0.5 

0.5 

1.4 

1.2 

N/A 

* Noncurrent loan rates represent the percentage of loans that Less than .75% are past due 90 days or more or in nonaccrual status. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 First Quarter 1999 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

1999** 1998** 1998 1997 1996 1995 1994 

Return on assets (%)............................................. 0.98 1.01 1.01 0.93 0.70 0.77 0.66 

Return on equity (%)............................................. 11.35 11.55 11.34 10.84 8.40 9.40 8.28 

Core capital (leverage) ratio (%).............................. 7.87 8.02 7.85 7.95 7.76 7.80 7.65 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.68 0.89 0.72 0.95 1.09 1.20 1.38 

Net charge-offs to loans (%).................................... 0.15 0.21 0.22 0.25 0.32 0.34 0.51 

Asset growth rate (%).......................................... 6.70 1.77 6.05 -0.21 0.25 1.70 0.77 

Net interest margin................................................ 3.08 3.18 3.10 3.23 3.22 3.09 3.34 

Net operating income growth (%)........................... 7.62 -5.00 7.69 20.07 -13.99 13.81 22.24 

Number of institutions reporting.............................. 1,669 1,756 1,689 1,780 1,925 2,030 2,152 

Percentage of unprofitable institutions (%)............... 5.87 4.78 5.27 4.16 12.05 5.86 6.97 

Number of problem institutions.............................. 16 16 15 21 35 49 71 

Assets of problem institutions (in billions).................. $5 $2 $6 $2 $7 $14 $39 

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

** Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 31. 

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

(dollar figures in millions) 

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

Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

1999 1998 1998 98:1-99:1 

1,669 1,689 1,756 -5.0 

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

CONDITION DATA

240,028 236,797 243,508 -1.4 

 Total assets..................................................................... $1,109,958 $1,088,240 $1,040,292 6.7

 Loans secured by real estate.......................................... 646,383 643,937 637,151 1.4 

1-4 Family Residential................................................... 518,587 518,186 513,163 1.1 

Multifamily residential property....................................... 54,261 54,489 57,054 -4.9 

Commercial real estate................................................ 49,046 47,876 46,651 5.1 

Construction, development, and land.............................. 24,490 23,386 20,283 20.7

 Commercial & industrial loans.......................................... 22,393 21,056 17,398 28.7

 Loans to individuals...................................................... 54,083 52,614 47,575 13.7

 Other loans & leases...................................................... 3,626 3,752 2,997 21.0

 Less: Unearned income & contra accounts***..................... 179 188 206 -13.3

 Total loans & leases...................................................... 726,306 721,171 704,916 3.0

 Less: Reserve for losses................................................... 6,999 6,927 6,975 0.3

 Net loans & leases......................................................... 719,308 714,244 697,941 3.1

 Securities........................................................................ 287,919 269,377 249,122 15.6

 Other real estate owned................................................... 1,530 1,577 1,992 -23.2

 Goodwill and other intangibles.......................................... 14,820 14,210 11,857 25.0

 All other assets............................................................... 86,382 88,832 79,380 8.8 

Total liabilities and capital................................................... 1,109,958 1,088,240 1,040,292 6.7

 Deposits........................................................................ 699,367 704,860 707,997 -1.2

 Other borrowed funds...................................................... 291,665 267,613 221,378 31.7

 Subordinated debt............................................................ 3,066 2,812 2,735 12.1

 All other liabilities............................................................ 20,150 18,445 16,720 20.5

 Equity capital.................................................................. 95,711 94,509 91,463 4.6 

Loans and leases 30-89 days past due................................. 6,803 7,479 7,653 -11.1 

Noncurrent loans and leases................................................ 6,010 6,231 7,222 -16.8 

Restructured loans and leases............................................. 2,305 2,435 3,218 -28.4 

Direct and indirect investments in real estate........................... 588 589 638 -8.0 

Mortgage-backed securities................................................ 222,661 207,165 182,555 22.0 

Earning assets.................................................................. 1,035,545 1,012,722 971,708 6.6 

FHLB Advances (Source: TFR and FHFB).............................. 184,547 174,729 139,780 32.0 

Unused loan commitments................................................ 189,381 185,090 172,892 9.5 

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 

Full Year Full Year 1st Quarter 1st Quarter %Change 

1998 1997 %Change 1999 1998 98:1-99:1 

$71,085 $69,175 2.8 $18,426 $18,327 0.5 

41,902 40,559 3.3 10,592 10,742 -1.4

29,183 28,616 2.0 7,834 7,585 3.3 

1,771 2,186 -19.0 396 425 -6.6 

9,200 7,029 30.9 2,328 1,929 20.7 

23,570 21,073 11.9 6,102 5,768 5.8 

2,458 1,260 95.1 600 647 -7.2 

5,269 4,852 8.6 1,578 1,377 14.7 

-83 -5 N/M -3 -8 N/M

10,148 8,789 15.5 2,684 2,584 3.9 

1,459 1,585 -7.9 273 364 -24.9 

6,566 4,906 33.8 1,064 1,399 -24.0

8,482 7,876 7.7 2,281 2,120 7.6 

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

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

FDIC Quarterly Banking Profile 

First Quarter 1999 11 FDIC-Insured Commercial Banks 
TABLE III-B. First Quarter 1999, FDIC-Insured Savings Institutions 

FIRST 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 

1,669 690 836 108 35 648 232 433 126 117 113 

Total assets (in billions).................................... $1,110.0 $35.7 $242.2 $215.0 $617.1 $366.1 $67.2 $178.4 $38.4 $72.0 $387.9 

Total deposits (in billions)................................. 699.4 29.1 187.9 140.1 342.3 257.5 48.3 122.3 26.5 43.3 201.5 

Net income (in millions).................................... 2,683.8 57.8 575.1 586.5 1,464.5 825.8 167.4 474.7 70.6 191.6 953.7 

% of unprofitable institutions.............................. 5.9 10.9 2.3 2.8 2.9 3.7 10.8 5.3 7.1 8.5 6.2 

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

Performance ratios (annualized, %) 

44.9 35.5 49.2 64.8 65.7 46.3 45.3 42.3 38.1 46.2 52.2 

Yield on earning assets.................................... 7.24 7.33 7.33 7.46 7.12 7.17 7.37 7.46 7.33 7.52 7.12 

Cost of funding earning assets........................... 4.16 4.01 3.98 4.14 4.25 3.89 4.16 4.33 4.37 4.35 4.29 

Net interest margin.......................................... 3.08 3.32 3.35 3.32 2.87 3.29 3.22 3.13 2.96 3.17 2.83 

Noninterest income to earning assets.................. 0.91 1.22 0.67 1.23 0.89 0.79 1.30 1.06 0.71 1.16 0.87 

Noninterest expense to earning assets.................. 2.40 3.52 2.66 2.70 2.12 2.59 2.98 2.56 2.38 2.74 1.98 

Credit loss provision to assets*........................... 0.15 0.08 0.10 0.32 0.11 0.11 0.24 0.23 0.08 0.27 0.11 

Net operating income to assets........................... 0.84 0.55 0.79 0.90 0.85 0.78 0.74 0.81 0.65 0.90 0.92 

Return on assets............................................. 0.98 0.65 0.96 1.11 0.97 0.92 1.01 1.08 0.75 1.08 1.00 

Return on equity............................................. 11.35 5.33 8.87 12.17 13.02 9.36 10.07 11.70 7.53 13.04 14.25 

Net charge-offs to loans and leases..................... 0.15 0.08 0.08 0.41 0.10 0.08 0.24 0.25 0.12 0.21 0.14 

Credit loss provision to net charge-offs.................. 145.19 163.15 177.06 122.51 166.06 216.76 145.97 129.10 98.71 187.16 114.37 

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

Condition Ratios (%) 

58.12 77.05 65.17 57.80 53.85 61.13 65.24 58.91 63.03 62.00 51.76 

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

Loss allowance to: 

93.30 94.27 94.37 92.75 93.01 93.50 93.01 92.28 93.69 91.94 93.83 

Loans and leases.......................................... 0.96 0.79 0.88 1.26 0.91 1.07 0.92 0.81 0.68 0.89 1.00 

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

Noncurrent assets plus 

116.46 78.75 115.09 105.02 126.45 105.14 135.45 104.09 119.17 88.33 141.00 

other real estate owned to assets..................... 0.68 0.77 0.64 0.99 0.58 0.73 0.62 0.68 0.53 0.96 0.60 

Noncurrent RE loans to RE loans........................ 0.83 0.96 0.74 1.24 0.73 1.04 0.66 0.77 0.53 1.08 0.70 

Equity capital ratio............................................. 8.62 12.13 10.79 9.11 7.40 9.74 10.03 9.20 10.28 8.29 6.95 

Core capital (leverage) ratio.............................. 7.87 11.79 10.25 8.44 6.50 8.74 9.55 8.25 9.45 8.12 6.37 

Gross real estate assets to gross assets............... 77.98 67.55 71.30 72.01 83.29 72.72 71.42 74.98 76.15 66.28 87.81 

Gross 1-4 family mortgages to gross assets......... 46.42 48.60 46.24 37.40 49.51 40.38 46.01 51.95 51.51 35.58 51.16 

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

Structural Changes 

102.85 79.85 84.72 95.88 117.61 83.23 92.71 104.50 101.89 113.85 127.12 

New Charters................................................ 8 7 1 0 0 1 3 3 0 0 1 

Thrifts absorbed by mergers........................... 27 13 11 3 0 7 6 9 1 3 1 

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

PRIOR FIRST QUARTERS**

 (The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Number of institutions...............................1998 1,756 743 862 115 36 680 249 458 130 117 122

 ...............................................1996 2,005 896 951 124 34 747 299 516 151 135 157

 ...............................................1994 2,239 1,030 1,037 144 28 823 356 565 165 145 185 

Total assets (in billions).............................1998 $1,040.3 $39.0 $256.4 $220.4 $524.5 $347.0 $66.8 $174.0 $34.5 $62.1 $356.0

 ................................................1996 1,016.4 46.1 279.1 256.6 434.6 346.5 69.7 169.5 51.5 78.9 300.3

 ................................................1994 996.7 52.3 298.1 306.7 339.6 338.4 84.1 150.4 52.2 57.2 314.4 

Return on assets (%)................................1998 1.01 0.79 0.99 1.06 1.02 1.00 0.88 0.98 1.00 1.36 1.00

 ................................................1996 1.01 0.70 0.89 1.10 1.06 1.01 0.88 0.92 0.90 2.62 0.69

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

Net charge-offs to loans & leases (%) 

0.52 0.85 0.82 0.83 -0.07 0.87 0.79 0.55 0.89 1.02 -0.09 

 ................................................1998 0.21 0.11 0.10 0.33 0.22 0.16 0.36 0.19 0.17 0.45 0.20

 ................................................1996 0.30 0.08 0.17 0.28 0.42 0.27 0.33 0.11 0.12 0.24 0.46

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

Noncurrent assets plus 

0.51 0.08 0.20 0.63 0.73 0.52 0.25 0.11 0.16 0.34 0.78 

OREO to assets (%)***.....................1998 0.89 0.84 0.78 1.23 0.80 1.00 0.81 0.65 0.60 1.09 0.90

 ................................................1996 1.23 1.03 0.98 1.46 1.28 1.42 1.33 0.58 0.63 1.16 1.47

 .................................................1994 1.96 1.37 1.63 2.07 2.25 2.46 1.31 0.67 0.74 1.86 2.44 

Equity capital ratio (%)..............................1998 8.79 12.01 10.48 8.95 7.66 9.71 10.15 9.21 9.35 8.74 7.40

 ................................................1996 8.42 10.78 9.79 8.46 7.27 8.98 9.45 9.16 8.61 7.75 7.27

 ................................................1994 7.97 9.49 8.80 7.85 7.10 8.18 8.36 8.63 7.88 7.21 7.46 

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

** Data between 1994 and 1995 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 First Quarter 1999 
TABLE IV-B. Full Year 1998, FDIC-Insured Savings Institutions 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- South 

west west West 

1,689 701 843 111 34 656 233 442 125 120 113 

Total assets (in billions).................................... $1,088.2 $36.2 $245.0 $220.4 $586.7 $360.0 $66.4 $176.1 $36.7 $70.6 $378.5 

Total deposits (in billions)................................. 704.9 29.4 190.1 145.8 339.6 259.5 47.7 122.3 26.0 43.0 206.3 

Net income (in millions).................................... 10,147.6 268.0 2,073.8 2,203.8 5,602.0 3,259.6 564.7 1,604.6 319.0 776.8 3,622.9 

% of unprofitable institutions.............................. 5.3 9.6 2.0 4.5 0.0 3.5 9.0 4.5 8.0 5.8 7.1 

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

Performance Ratios (%) 

51.3 42.8 55.2 66.7 82.4 52.9 51.9 47.3 40.8 53.3 66.4 

Yield on earning assets.................................... 7.55 7.63 7.62 7.76 7.44 7.45 7.82 7.65 7.57 7.79 7.51 

Cost of funding earning assets........................... 4.45 4.22 4.23 4.44 4.57 4.12 4.47 4.59 4.62 4.62 4.66 

Net interest margin.......................................... 3.10 3.41 3.39 3.31 2.87 3.33 3.35 3.06 2.95 3.17 2.86 

Noninterest income to earning assets.................. 0.98 0.95 0.68 1.20 1.03 0.72 1.68 1.09 0.76 1.34 1.01 

Noninterest expense to earning assets.................. 2.50 3.15 2.69 2.83 2.26 2.53 3.37 2.68 2.23 2.89 2.20 

Credit loss provision to assets........................... 0.18 0.10 0.16 0.31 0.14 0.12 0.37 0.25 0.12 0.33 0.14 

Net operating income to assets........................... 0.84 0.66 0.72 0.83 0.91 0.83 0.74 0.70 0.82 0.86 0.94 

Return on assets............................................. 1.01 0.77 0.89 1.08 1.04 0.97 0.93 0.97 0.92 1.19 1.05 

Return on equity............................................. 11.34 6.19 8.31 11.80 13.51 9.82 9.04 10.27 9.34 14.14 14.23 

Net charge-offs to loans and leases..................... 0.22 0.08 0.15 0.27 0.24 0.16 0.54 0.20 0.10 0.42 0.19 

Credit loss provision to net charge-offs*............... 121.41 205.32 160.56 184.49 83.99 127.51 101.91 167.94 160.58 116.90 101.90 

Efficiency ratio................................................ 59.41 71.68 65.51 60.94 55.03 60.35 66.11 61.89 58.54 62.82 55.00 

Condition Ratios (%) 

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

Loss allowance to: 

93.06 94.33 94.25 92.60 92.66 93.37 92.72 92.34 94.21 92.09 93.23 

Loans and leases.......................................... 0.96 0.78 0.88 1.24 0.91 1.06 0.92 0.81 0.66 0.86 1.01 

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

Noncurrent assets plus 

111.18 77.15 107.04 98.62 123.63 96.24 131.91 101.69 112.71 97.42 133.62 

other real estate owned to assets..................... 0.72 0.77 0.69 1.03 0.61 0.79 0.66 0.69 0.54 0.87 0.66 

Noncurrent RE loans to RE loans........................ 0.86 0.98 0.79 1.29 0.74 1.12 0.67 0.76 0.55 0.95 0.75 

Equity capital ratio............................................. 8.68 12.32 10.74 9.04 7.47 9.80 10.16 9.16 9.64 8.20 7.14 

Core capital (leverage) ratio.............................. 7.85 11.90 10.11 8.36 6.46 8.72 9.54 8.15 8.89 7.93 6.47 

Gross real estate assets to gross assets............... 77.90 68.19 71.42 72.89 83.09 72.43 72.93 76.01 76.07 66.91 87.07 

Gross 1-4 family mortgages to gross assets......... 47.31 49.30 46.65 38.91 50.62 41.18 47.75 52.66 53.04 36.87 51.95 

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

Structural Changes 

101.33 80.46 84.65 95.66 114.91 82.25 93.30 102.72 100.93 111.68 124.27 

New charters................................................ 28 28 0 0 0 2 9 9 4 3 1 

Thrifts absorbed by mergers........................... 114 35 53 21 5 33 24 28 13 5 11 

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

PRIOR FULL YEARS**

 (The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

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

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

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

Total assets (in billions).............................1997 $1,026.2 $39.9 $250.4 $239.7 $496.1 $342.8 $64.8 $174.2 $33.6 $64.0 $346.8

 ................................................1995 1025.7 46.7 278.5 281.3 419.2 352.3 70.9 169.9 52.2 74.9 305.6

 ................................................1993 1000.9 53.4 298.8 306.8 341.9 336.6 89.1 150.8 50.9 56.9 316.6 

Return on assets (%)................................1997 0.93 0.75 0.95 1.06 0.87 1.00 0.84 0.90 1.01 1.00 0.86

 ................................................1995 0.77 0.67 0.80 0.84 0.72 0.88 0.87 0.85 0.98 1.05 0.51

 ................................................1993 

Net charge-offs to loans & leases (%) 

0.71 1.00 0.93 0.62 0.53 0.68 0.71 0.97 0.98 1.58 0.39 

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

 ................................................1995 0.34 0.14 0.17 0.38 0.45 0.39 0.14 0.14 0.18 0.23 0.47

 ................................................1993 

Noncurrent assets plus 

0.65 0.15 0.29 0.53 1.13 0.68 0.34 0.11 0.15 0.28 1.03 

OREO to assets (%)***........................1997 0.95 0.87 0.82 1.31 0.84 1.12 0.86 0.67 0.57 1.10 0.94

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

 .................................................1993 2.10 1.43 1.74 2.17 2.45 2.73 1.48 0.72 0.83 2.26 2.44 

Equity capital ratio (%)..............................1997 8.71 11.91 10.49 8.73 7.54 9.62 10.12 9.20 9.44 8.33 7.29

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

 ................................................1993 7.84 9.33 8.61 7.71 7.04 7.99 7.97 8.53 7.90 7.12 7.42 

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

** Data between 1993 and 1995 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 

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

March 31, 1999 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate........................... 0.88 1.65 1.03 0.89 0.76 0.85 0.97 0.92 1.24 1.29 0.76 

Construction, development, and land.................. 1.18 1.89 1.49 0.99 0.95 0.78 1.28 1.79 2.02 1.06 0.81 

Commercial real estate.................................... 0.77 1.28 0.77 0.87 0.65 0.84 0.82 0.84 1.24 0.96 0.45 

Multifamily residential real estate........................ 0.30 0.85 0.46 0.33 0.23 0.34 0.72 0.47 0.04 0.44 0.23 

Home equity loans.......................................... 0.59 0.70 0.72 0.53 0.54 0.77 0.35 0.52 1.23 0.13 0.39 

Other 1-4 Family residential.............................. 0.94 1.73 1.10 0.99 0.83 0.91 0.99 0.94 1.25 1.47 0.87 

Commercial and industrial loans........................... 1.26 2.36 1.61 1.42 0.80 1.03 1.70 2.09 1.84 1.13 0.94 

Loans to individuals............................................. 1.56 2.18 1.73 1.74 1.37 1.46 2.15 1.53 2.09 0.93 2.00 

Credit card loans............................................. 1.77 0.62 3.75 2.46 1.10 1.41 2.34 2.07 3.92 0.59 4.09 

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

Percent of Loans Noncurrent* 

1.50 2.23 1.60 1.39 1.46 1.47 2.11 1.37 2.01 1.18 1.53 

All real estate loans............................................. 0.83 0.96 0.74 1.24 0.73 1.04 0.66 0.77 0.53 1.08 0.70 

Construction, development, and land.................. 0.91 1.58 1.09 0.92 0.68 1.01 0.65 1.30 1.15 0.33 1.28 

Commercial real estate.................................... 1.13 1.27 1.01 1.55 0.91 1.34 1.23 1.27 0.57 0.94 0.77 

Multifamily residential real estate........................ 0.62 0.94 0.59 1.13 0.42 0.93 0.84 0.61 0.27 3.45 0.29 

Home equity loans.......................................... 0.32 0.21 0.38 0.27 0.31 0.40 0.09 0.31 0.34 0.04 0.28 

Other 1-4 Family residential.............................. 0.83 0.90 0.69 1.27 0.77 1.04 0.62 0.75 0.50 1.10 0.75 

Commercial and industrial loans........................... 1.00 2.19 1.26 0.98 0.72 0.98 0.85 1.41 1.44 0.90 0.78 

Loans to individuals............................................. 0.77 1.02 0.86 1.04 0.58 0.72 0.83 0.76 0.65 0.66 0.96 

Credit card loans............................................. 1.46 1.15 3.26 1.80 1.06 1.03 1.29 1.34 2.35 1.08 3.33 

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

Percent of Loans Charged-off (net, annual) 

0.56 1.02 0.70 0.66 0.42 0.65 0.73 0.58 0.58 0.36 0.43 

All real estate loans............................................. 0.03 0.03 0.03 0.07 0.01 0.01 0.05 0.06 0.04 0.03 0.01 

Construction, development, and land.................. 0.03 0.06 0.04 0.01 0.02 0.04 0.06 0.04 0.03 0.00 0.00 

Commercial real estate.................................... -0.08 0.17 -0.04 -0.05 -0.18 -0.11 0.14 0.08 0.23 0.00 -0.26 

Multifamily residential real estate........................ -0.21 -0.04 0.06 -0.01 -0.36 -0.03 0.00 0.04 0.00 0.08 -0.37 

Home equity loans.......................................... 0.16 0.11 0.03 0.20 0.22 0.11 0.12 0.12 0.42 0.20 0.30 

Other 1-4 Family residential.............................. 0.06 0.02 0.04 0.10 0.05 0.03 0.04 0.06 0.02 0.04 0.08 

Commercial and industrial loans........................... 0.24 0.35 0.30 0.40 0.09 0.06 0.57 0.40 0.53 0.28 0.32 

Loans to individuals............................................. 1.66 0.55 0.80 2.99 1.27 0.97 1.90 1.69 0.75 0.94 3.60 

Credit card loans............................................. 4.31 2.23 2.72 6.82 2.65 2.85 4.94 4.34 8.31 1.32 13.85 

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

Loans Outstanding (in billions) 

0.82 0.49 0.68 1.09 0.78 0.52 1.31 0.81 0.32 0.64 1.39 

All real estate loans............................................. $646.4 $21.1 $145.6 $113.1 $366.6 $190.5 $38.8 $110.1 $23.9 $37.4 $245.7 

Construction, development, and land.................. 24.5 1.1 7.9 6.1 9.5 4.6 3.6 4.6 1.2 5.8 4.7 

Commercial real estate.................................... 48.8 1.9 16.4 13.0 17.5 22.2 3.3 5.9 2.0 4.0 11.5 

Multifamily residential real estate........................ 54.3 0.6 8.6 12.8 32.3 14.8 0.8 6.4 0.8 1.8 29.6 

Home equity loans.......................................... 16.9 0.4 4.6 3.7 8.1 6.7 1.5 4.4 0.5 0.4 3.4 

Other 1-4 Family residential.............................. 501.7 17.0 108.1 77.4 299.3 142.1 29.6 88.8 19.4 25.4 196.4 

Commercial and industrial loans........................... 22.4 0.8 5.3 6.7 9.6 9.8 1.9 3.1 0.9 2.9 3.8 

Loans to individuals............................................. 54.1 1.5 9.2 15.1 28.1 15.0 4.4 14.6 2.2 9.1 8.7 

Credit card loans............................................. 12.4 0.1 0.6 5.0 6.8 2.7 0.8 3.5 0.1 3.8 1.6 

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

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

41.7 1.5 8.7 10.2 21.4 12.3 3.6 11.2 2.1 5.3 7.1 

All other real estate owned................................. $1,529.7 $39.5 $332.0 $493.4 $664.8 $470.0 $112.3 $203.6 $50.3 $189.0 $504.5 

Construction, development, and land.................. 185.3 4.6 34.1 23.7 123.0 30.8 89.3 21.5 9.5 5.8 28.5 

Commercial real estate.................................... 325.6 6.3 61.8 188.1 69.4 151.8 10.6 43.1 15.2 41.3 63.6 

Multifamily residential real estate........................ 201.6 1.4 83.4 64.2 52.5 55.8 0.8 6.2 0.0 83.6 55.2 

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

Troubled Real Estate Asset Rates*** 

(% of total RE assets) 

867.5 28.1 158.2 229.4 451.9 243.6 34.9 136.8 30.4 60.0 361.9 

All real estate loans............................................. 1.06 1.14 0.96 1.67 0.91 1.29 0.94 0.96 0.74 1.57 0.90 

Construction, development, and land.................. 1.65 1.99 1.51 1.31 1.96 1.66 3.06 1.76 1.91 0.43 1.88 

Commercial real estate.................................... 1.79 1.60 1.38 2.97 1.30 2.02 1.54 1.99 1.32 2.00 1.31 

Multifamily residential real estate........................ 0.99 1.18 1.55 1.62 0.58 1.30 0.94 0.71 0.27 7.63 0.47 

1-4 family residential....................................... 0.98 1.04 0.82 1.50 0.90 1.17 0.70 0.87 0.65 1.32 0.92 

* 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 First Quarter 1999 
ALL FDIC-INSURED INSTITUTIONS 

• Insured Deposits Fall $20 Billion After Record Fourth-Quarter Increase 

• Deposit Shrinkage Helps Boost Insurance Fund Reserve Ratios 

• One BIF Member Fails In The First Quarter Of 1999 

The assets and deposits of the nation’s 10,415 FDICinsured depository institutions experienced some shrinkage in the first quarter of 1999, following record increases in the fourth quarter of 1998. Total assets fell by $8.6 

billion, or 0.1 percent, but total deposits decreased considerably more, falling by $50 billion, or 1.1 percent, during the three-month period. By contrast, during the fourth 

quarter, total assets grew by $202 billion and total 

deposits increased by $183 billion. Of the first-quarter 

decline in deposits, estimated insured deposits fell by 

$19.8 billion and uninsured domestic deposits fell by 

$33.5 billion; foreign-office deposits, which are uninsured, gained $2.8 billion. 

The $20-billion decline in insured deposits was equally 

divided between the Bank Insurance Fund (BIF) and the 

Savings Association Insurance Fund (SAIF). The balance of the BIF was $29.9 billion (unaudited) on March 

31, up $240 million since year-end 1998. This 0.8-percent growth in the fund, combined with the 0.5-percent 

decline in BIF-insured deposits, raised the fund’s reserve 

ratio from 1.39 percent to 1.41 percent. This is the level 

at which the reserve ratio stood on September 30, 1998, 

before falling by 2 basis points because of the fourthquarter surge in insured deposits. 

On January 1, a Special Reserve was established within 

the SAIF, as required by the Deposit Insurance Funds 

Act of 1996. The reserve was funded with $978 million, 

the amount by which the SAIF exceeded the Designated 

Reserve Ratio of 1.25 percent. The reserve is available 

for insurance purposes only under certain adverse conditions, and it is to be excluded from the reserve ratio calculation. The reserve ratio of the SAIF was 1.37 percent 

on December 31, but the establishment of the Special 

Reserve dropped the ratio to 1.25 percent on January 1. 

During the first quarter, the “unrestricted” portion of the 

SAIF increased by $97 million (1.1 percent) to $8.96 billion (unaudited), while SAIF-insured deposits decreased 

by $9.6 billion (1.3 percent). This resulted in a 2-basis 

point increase in the SAIF reserve ratio, to 1.27 percent. 

For all FDIC-insured institutions, insured deposits represented 55 percent of domestic liabilities on March 31, 

down from the recent peak of 70 percent in early 1992. 

However, smaller institutions still rely heavily on insured 

deposits for their funding. For institutions with total 

assets under $1 billion, insured deposits were 77 percent 

of domestic liabilities on March 31, 1999, compared to 49 

percent for institutions with assets greater than $1 billion. 

One BIF-member commercial bank, with total assets of 

$13.9 million, failed in the first quarter of 1999. The FDIC 

expects a full recovery of its outlays. No SAIF member 

failed in the first quarter, marking the tenth consecutive 

quarter without a SAIF-member failure. 

INTERSTATE BRANCHES AS A PERCENT OF TOTAL OFFICES, MARCH 31, 1999 

21.4 

AK 22.8 

45.4 

28.5 

58.3 

79.0 

16.8 

15.1 

20.5 

0.8 

17.1 

24.5 

1.8 7.8 

6.6 

19.8 

19.1 

72.1 

15.5 

3.8 

33.7 

4.8 

15.8 

21.5 

34.7 

47.1 

1.0 

13.1 

13.8 

AZ 

AR 

CO 

FL 

ID 

KS 

ME 

MI 

MN 

MS 

MO 

MT 

NV NE 

NM 

NY 

ND 

OR 

PA 

SC 

SD 

TX 

UT 

VA 

WA 

WV 

WI 

WY 

PR 

55.9 

Greater than 30% 

Between 15% and 30% 

Between 1% and 15% 

Less than 1% 

CT: 38.0 

DE: 15.6 

DC: 92.7 

MD: 37.7 

MA: 14.2 

NH: 15.9 

NJ: 37.6 

RI: 23.1 

VT: 15.2 

2.5 

CA 

0.7 

HI 

GA 

39.9 

5.3 

AL 

16.3 

3.3 

14.9 

KY 

NC 

TN 

Figures reflect percent of branches owned by out-of-state 

commercial banks and savings institutions. 

Note: 

12.6 

IA 

10.3 

LA 

9.0 

OK 

17.2 

IN 

10.5 

IL 3.3 

OH 

FDIC Quarterly Banking Profile 

First Quarter 1999 15 All FDIC-Insured Institutions 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

Number of institutions reporting.............................. 10,390 10,779 10,463 10,922 11,452 11,970 12,603 

Total assets......................................................... $ 6,519,682 $6,149,388 $6,529,341 $6,041,135 $5,606,608 $5,338,418 $5,019,085 

Total deposits...................................................... 4,336,552 4,175,390 4,386,332 4,125,862 3,925,058 3,769,480 3,611,618 

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

Assets of problem institutions (in billions).................. $10 $7 $11 $6 $12 $31 $73 

Number of failed/assisted institutions........................ 1 0 3 1 6 8 15 

Assets of failed/assisted institutions (in billions)......... $0.01 $0.00 $0.37 $0.03 $0.22 $1.21 $1.57 

** As of March 31. 

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

(dollar figures in millions) 

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

Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

1999 1998 1998 98:1-99:1 

 10,390 10,463 10,779 -3.6 

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

CONDITION DATA 

1,859,426 1,863,844 1,800,759 3.3 

Total assets..................................................................... $6,519,682 $6,529,341 $6,149,388 6.0

 Loans secured by real estate.......................................... 1,992,675 1,989,439 1,910,928 4.3 

1-4 Family residential................................................... 1,267,278 1,283,492 1,250,075 1.4 

Home equity loans...................................................... 112,468 113,432 114,011 -1.4 

Multifamily residential property....................................... 99,695 97,216 99,175 0.5 

Commercial real estate................................................ 429,315 418,678 393,944 9.0 

Construction, development, and land.............................. 136,396 130,105 111,095 22.8 

Other real estate loans................................................... 59,991 59,948 56,638 5.9 

Commercial & industrial loans 944,127 919,779 836,519 12.9

 Loans to individuals...................................................... 602,619 623,573 589,710 2.2

 Credit cards & related plans.......................................... 220,268 241,645 222,294 -0.9

 Other loans & leases...................................................... 441,674 431,012 395,760 11.6

 Less: Unearned income & contra accounts........................ 3,841 4,220 4,533 -15.3

 Total loans & leases...................................................... 3,977,254 3,959,582 3,728,384 6.7

 Less: Reserve for losses................................................... 64,857 64,173 62,175 4.3 

Net loans and leases......................................................... 3,912,397 3,895,408 3,666,209 6.7 

Securities........................................................................ 1,283,345 1,249,081 1,154,527 11.2 

Other real estate owned...................................................... 4,665 4,726 5,726 -18.5 

Goodwill and other intangibles............................................. 98,120 94,405 78,058 25.7 

All other assets............................................................... 1,221,154 1,285,722 1,244,868 -1.9 

Total liabilities and capital................................................... 6,519,682 6,529,341 6,149,388 6.0

 Deposits....................................................................... 4,336,552 4,386,332 4,175,390 3.9

 Other borrowed funds...................................................... 1,227,965 1,170,708 1,076,287 14.1

 Subordinated debt............................................................ 76,425 75,597 68,912 10.9

 All other liabilities............................................................ 313,437 340,023 307,549 1.9

 Equity capital.................................................................. 565,303 556,681 521,251 8.5 

Loans and leases 30-89 days past due................................. 45,871 48,316 46,535 -1.4 

Noncurrent loans and leases................................................ 38,236 37,478 36,727 4.1 

Restructured loans and leases............................................. 3,836 4,280 5,322 -27.9 

Direct and indirect investments in real estate........................... 1,105 1,095 1,188 -7.0 

Mortgage-backed securities................................................ 678,348 677,228 584,953 16.0 

Earning assets.................................................................. 5,709,391 5,688,432 5,385,162 6.0 

FHLB Advances (Source: FHLB and TFR).............................. 290,118 278,839 205,174 41.4 

Unused loan commitments................................................ 3,938,092 3,884,257 3,456,411 13.9 

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 

Full Year Full Year 1st Quarter 1st Quarter %Change 

1998 1997 %Change 1999 1998 98:1-99:1 

$433,113 $408,723 6.0 $108,680 $106,871 1.7 

221,170 205,600 7.6 53,458 54,972 -2.8

211,943 203,123 4.3 55,222 51,899 6.4 

23,960 22,036 8.7 5,811 5,258 10.5 

132,902 111,527 19.2 37,051 30,990 19.6 

217,691 191,056 13.9 55,735 51,484 8.3 

5,586 3,102 80.1 1,166 1,441 -19.1 

37,236 36,725 1.4 11,200 9,617 16.5 

424 14 N/M -36 530 N/M

71,968 67,949 5.9 20,657 18,503 11.6 

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

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 16 First Quarter 1999 
 

 

 

 

TABLE III-C. Selected Insurance Fund Indicators 

(dollar figures in millions) Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

1999 1998 1998 98:1-99:1 

Bank Insurance Fund* 

Reserve ratio (%)**.................................................................. 1.41 1.39 1.38 2.1 

Fund balance (unaudited)............................................................ $29,852 $29,612 $28,559 4.5 

Estimated insured deposits......................................................... 2,124,236 2,134,437 2,075,681 2.3 

SAIF-member Oakars............................................................ 39,597 40,260 31,945 24.0 

BIF-members........................................................................ 2,084,639 2,094,177 2,043,736 2.0 

Assessment base..................................................................... 2,940,009 2,989,501 2,823,633 4.1 

SAIF-member Oakars............................................................ 42,135 42,413 33,587 25.4 

BIF-members........................................................................ 2,897,874 2,947,088 2,790,045 3.9 

Savings Association Insurance Fund 

Reserve ratio (%)**.................................................................. 1.27 1.37 1.35 -6.2 

Fund balance (unaudited)............................................................ $9,937 $9,840 $9,484 4.8 

Special Reserve..................................................................... 978 N/A N/A N/A 

Unrestricted........................................................................... 8,959 9,840 9,484 -5.5 

Estimated insured deposits......................................................... 706,476 716,028 701,428 0.7 

BIF-member Oakars............................................................... 260,412 265,159 268,133 -2.9 

SAIF-member Sassers............................................................ 66,769 63,719 60,704 10.0 

Other SAIF members............................................................... 379,295 387,150 372,590 1.8 

Assessment base..................................................................... 749,886 758,565 734,788 2.1 

BIF-member Oakars............................................................... 260,818 266,378 268,709 -2.9 

SAIF-member Sassers............................................................ 74,048 70,483 66,008 12.2 

Other SAIF members............................................................... 415,020 421,704 400,071 3.7 

Insurance Fund Reserve Ratios* Fund Balance and Insured Deposits* 

Percent of Insured Deposits ($ Millions) 

BIF Fund BIF-Insured Unrestricted SAIF-Insured 

Balance Deposits SAIF Fund Deposits 

Balance 

12/92 -101 1,945,550 279 732,159 

12/93 13,122 1,905,245 1,157 697,885 

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

12/95 25,454 1,951,963 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 2,134,437 9,840 716,028 

-0.01 3/99 29,852 2,124,236 8,959 706,476 

1.34 1.38 1.39 1.41 

0.04 

0.17 

1.15 

0.69 

1.30 

1.37 1.36 1.27 

0.47 

1.30 

0.28 

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

BIF 

SAIF 

Target Ratio 

* Includes U.S. branches of foreign banks. 

** Fund balance as a percent of estimated insured deposits. For SAIF, Special Reserve is excluded. 

* Insured deposit amounts are estimates. 

 1999 fund balance amounts are unaudited. 

* Insurance fund balance as a percent of total insured deposits. 

For SAIF, Special Reserve is excluded. 

TABLE IV-C. Closed/Assisted Institutions 

(dollar figures in millions) 

1999* 1998* 1998 1997 1996 1995 1994 

BIF Members 

Number of institutions............................................................ 1 0 3 1 5 6 13 

Total assets........................................................................... $12 $0 $371 $27 $182 $753 $1,392 

SAIF Members 

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

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

* Through March 31. 

FDIC Quarterly Banking Profile 

First Quarter 1999 17 All FDIC-Insured Institutions 
 

 

 

 

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

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

BIF Members 

Number of institutions reporting................................................ 8,976 9,031 9,289 9,404 9,823 10,243 10,760 

BIF-member Oakars............................................................ 733 742 765 778 793 807 719 

Other BIF-members............................................................... 8,243 8,289 8,524 8,626 9,030 9,436 10,041 

Total assets...........................................................................$ 5,675,736 $5,403,479 $5,701,162 $5,285,412 $4,857,761 $4,577,898 $4,248,300 

Total deposits........................................................................ 3,797,599 3,668,343 3,843,849 3,611,454 3,404,204 3,225,650 3,062,718 

Net income........................................................................... 18,596 16,641 64,369 61,463 54,484 50,780 46,882 

Return on assets (%)............................................................... 1.31 1.25 1.18 1.22 1.17 1.15 1.14 

Return on equity (%)............................................................... 15.14 14.81 13.81 14.44 14.14 14.32 14.43 

Noncurrent assets plus OREO to assets (%)................................. 0.66 0.68 0.64 0.67 0.77 0.89 1.06 

Number of problem institutions................................................... 64 68 68 73 86 151 264 

Assets of problem institutions................................................... $4,652 $4,761 $5,326 $4,598 $6,624 $20,166 $42,311 

Number of failed/assisted institutions.......................................... 1 0 3 1 5 6 13 

Assets of failed/assisted institutions............................................. $12 $0 $371 $27 $182 $753 $1,392 

SAIF Members 

Number of institutions reporting................................................ 1,414 1,432 1,490 1,518 1,629 1,727 1,843 

SAIF-member Oakars............................................................ 113 115 116 112 94 77 55 

Other SAIF-members............................................................ 1,301 1,317 1,374 1,406 1,535 1,650 1,788 

Total assets........................................................................... $843,945 $745,909 $828,179 $755,724 $748,848 $760,521 $770,785 

Total deposits........................................................................ 538,953 507,047 542,483 514,409 520,855 543,831 548,901 

Net income........................................................................... 2,061 1,862 7,599 6,486 4,883 5,584 4,102 

Return on assets (%)............................................................... 0.99 1.01 0.98 0.94 0.67 0.76 0.56 

Return on equity (%)............................................................... 11.77 11.67 11.34 11.13 8.07 9.47 7.16 

Noncurrent assets plus OREO to assets (%)................................. 0.75 0.92 0.80 0.98 1.07 1.12 1.23 

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

Assets of problem institutions................................................... $5,122 $2,301 $5,992 $1,662 $5,548 $10,846 $30,336 

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

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

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

** Through March 31, ratios annualized where appropriate. 

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

(dollar figures in millions) 

March 31, 1999 

Commercial Banks and Savings Institutions 

Number of Total Domestic 

Institutions Assets Deposits* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks............................................. 8,721 $5,409,723 $3,062,459 $1,929,799 $263,234 $2,193,032 

BIF-member..................................................................... 8,616 5,335,951 3,010,832 1,915,816 234,443 2,150,259 

SAIF-member.................................................................. 105 73,773 51,628 13,982 28,791 42,773 

FDIC-Supervised............................................................... 5,294 949,544 716,498 494,034 59,106 553,140 

OCC-Supervised............................................................... 2,433 3,141,447 1,747,155 1,101,760 154,570 1,256,330 

Federal Reserve-Supervised................................................ 994 1,318,733 598,806 334,004 49,558 383,562 

FDIC-Insured Savings Institutions............................................. 1,669 1,109,958 699,367 193,169 443,243 636,412 

OTS-Supervised Savings Institutions....................................... 1,129 835,053 504,752 70,183 389,267 459,450 

BIF-member..................................................................... 41 122,330 59,064 45,686 9,972 55,658 

SAIF-member.................................................................. 1,088 712,723 445,689 24,498 379,295 403,793 

FDIC-Supervised State Savings Banks.................................... 540 274,906 194,614 122,986 53,976 176,962 

BIF-member..................................................................... 319 217,456 152,981 121,869 15,998 137,867 

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

Total Commercial Banks and 

 221 57,450 41,633 1,117 37,978 39,095 

Savings Institutions................................................... 10,390 6,519,682 3,761,826 2,122,968 706,476 2,829,444 

BIF-member........................................................................ 8,976 5,675,736 3,222,877 2,083,371 260,412 2,343,783 

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

Other FDIC-Insured Institutions 

 1,414 843,945 538,950 39,597 446,064 485,661 

U.S. Branches of Foreign Banks............................................. 25 10,127 2,686 1,268 0 1,268 

Total FDIC-Insured Institutions....................................... 10,415 6,529,808 3,764,512 2,124,236 706,476 2,830,713 

* Excludes $575 billion in foreign office deposits, which are uninsured. 

FDIC Quarterly Banking Profile 

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

BIF Assessment Base Distribution 

Assessable Deposits in Millions as of March 31, 1999 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 1999 

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

 8,402 

 $2,842,735 

 154 

 $33,770 

 4 

 $406 

93.3% 

96.7% 

1.7% 

1.1% 

0.0% 

0.0% 

350 3.9% 

$55,856 1.9% 

21 0.2% 

$2,701 0.1% 

3 0.0% 

$191 0.0% 

43 

$1,517 

10 

$2,221 

14 

$612 

0.5% 

0.1% 

0.1% 

0.1% 

0.2% 

0.0% 

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

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

by on-site examinations. 

SAIF Assessment Base Distribution 

Assessable Deposits in Millions as of March 31, 1999 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 1999 

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

 1,289 

 $716,074 

 15 

 $4,418 

 1 

 $562 

91.2% 

95.5% 

1.1% 

0.6% 

0.1% 

0.1% 

87 6.2% 

$24,402 3.3% 

6 0.4% 

$567 0.1% 

1 0.1% 

$49 0.0% 

8 

$748 

4 

$2,881 

3 

$185 

0.6% 

0.1% 

0.3% 

0.4% 

0.2% 

0.0% 

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

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

by on-site examinations. 

Assessment Rate Schedules 

Second Semiannual 1999 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 

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

1991–1999 

Number of Institutions 

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

0 

500 

1,000 

1,500 1,426 

1,063 

572 

318 

193 

117 112 103 98 92 84 82 88 84 80 

Savings Institutions 

Commercial Banks 

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

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

ASSETS OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1991–1999 

$ Billions 

0 

200 

400 

600 

800 

$819 

$592 

$334 

$72 

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

Savings Institutions 

Commercial Banks 

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

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

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

FDIC Quarterly Banking Profile 

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

This publication contains financial data and other information 

for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding the 

comparability of source data and reporting differences over 

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

FDIC-Insured Commercial Banks 

(Tables I-A through V-A.) 

This section covers commercial banks insured by the FDIC 

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

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

the three federal commercial bank regulators (the Board of 

Governors of the Federal Reserve System, the FDIC or the 

Office of the Comptroller of the Currency). 

FDIC-Insured Savings Institutions 

(Tables I-B through V-B.) 

This section covers savings institutions insured by either BIF 

or SAIF that operate under state or federal banking codes 

applicable to thrift institutions, except for one self-liquidating 

institution primarily funded by the FSLIC Resolution Fund 

(FRF). Savings institutions in Resolution Trust Corporation 

conservatorships are also excluded from these tables while 

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

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

Office of Thrift Supervision (OTS). 

FDIC-Insured Institutions by Insurance Fund 

(Tables I-C through VII-C.) 

Summary balance-sheet and earnings data are provided for 

commercial banks and savings institutions according to 

insurance fund membership. BIF-member institutions may 

acquire SAIF-insured deposits, resulting in institutions with 

some deposits covered by both insurance funds. Also, SAIF 

members may acquire BIF-insured deposits. The insurance 

fund membership does not necessarily reflect which fund 

insures the largest percentage of an institution’s deposits. 

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

each include deposits from both insurance funds. Depository 

institutions that are not insured by the FDIC through either 

the BIF or SAIF are not included in the FDIC Quarterly 

Banking Profile. U.S. branches of institutions headquartered 

in foreign countries and non-deposit trust companies are not 

included unless otherwise indicated. Efforts are made to 

obtain financial reports for all active institutions. However, in 

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

DATA SOURCES 

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Call Reports and the OTS 

Thrift Financial Reports submitted by all FDIC-insured 

depository institutions. This information is stored on and 

retrieved from the FDIC’s Research Information System 

(RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting 

and accounting requirements of the FFIEC Call Reports. 

Beginning in March 1997, both Thrift Financial Reports and 

Call Reports are completed on a fully consolidated basis. 

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

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

subsidiary institution reports are included in the Quarterly 

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

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

All asset and liability figures used in calculating performance 

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

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

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

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

rates represent the percentage change over a 12-month 

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

institutions in the current period. 

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

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

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

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

ACCOUNTING CHANGES 

Adoption of GAAP Reporting — Effective with the March 

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

New reporting instructions for 1997 and 1998 changed the 

amounts reported for a number of items used in the 

Quarterly Banking Profile, so that comparability with prior 

periods may be affected. Among the items most significantly 

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

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

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

March 1997 and in March 1998 is contained in Financial 

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

www.fdic.gov/banknews/fils/, or from the FDIC Public 

Information Center, 801 17th Street, NW, Washington, DC 

20434; telephone (800) 276-6003. Information on changes 

to the March 31, 1997 Thrift Financial Reports is available 

from the Office of Thrift Supervision, 1700 G Street, NW, 

Washington, DC 20552; telephone (202) 906-5900. 

Subchapter S Corporations — The Small Business Job 

Protection Act of 1996 changed the Internal Revenue Code 

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

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

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

federal income taxes at the corporate level. Its taxable 

income flows through to its shareholders in proportion to their 

stock ownership, and the shareholders generally pay federal 

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

FDIC Quarterly Banking Profile 

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

increasing their after-tax earnings. 

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

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

DEFINITIONS (in alphabetical order) 

All other assets — total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

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

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

Federal funds sold are reported on a consolidated basis 

(domestic and foreign offices combined). Previously, Federal 

funds sold through foreign offices were reported as loans. 

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

sheet credit losses, and other liabilities. 

Assessment base distribution — each institution’s capital 

category is calculated or estimated from its financial report 

and does not reflect supervisory upgrades or downgrades: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) Capital * Capital * Leverage Equity 

Well-capitalized >10 and >6 and >5 — 

Adequately 

capitalized >8 and >4 and >4 — 

Undercapitalized >6 and >3 and >3 — 

Significantly 

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

Critically 

undercapitalized — — — <2 

*As a percentage of risk-weighted assets. 

For purpose of BIF and SAIF assessments, risk-based 

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

risk subgroup assignments are based on supervisory ratings. 

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

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

are in subgroup C. 

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

Construction and development loans — includes loans for 

all property types under construction, as well as loans for 

land acquisition and development. 

Core capital — common equity capital plus noncumulative 

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

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

with supervisory capital regulations. 

Cost of funding earning assets — total interest expense 

paid on deposits and other borrowed money as a percentage 

of average earning assets. 

Derivative contracts, gross fair values (positive/negative) — are reported separately and represent the amount at 

which a contract could be exchanged in a transaction 

between willing parties, other than in a forced or liquidation 

sale. If a quoted market price is available for a contract, the 

fair value reported for that contract is calculated using this 

market price. If quoted market prices are not available, the 

reporting banks use the best estimate of fair value based on 

quoted market prices of similar contracts or on valuation techniques such as discounted cash flows. This information is 

reported only by banks with assets greater than $100 million. 

Direct and indirect investments in real estate — excludes 

loans secured by real estate and property acquired through 

foreclosure. 

Earning assets — all loans and other investments that earn 

interest or dividend income. 

Efficiency Ratio — Noninterest expense less amortization 

of intangible assets as a percent of net interest income plus 

noninterest income. This ratio measures the proportion of net 

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

Estimated insured deposits — estimated amount of 

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

The sum of all deposit balances in accounts of less than 

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

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

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

liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the FDIC 

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

“assisted” when the institution remains open and receives 

some insurance funds in order to continue operating. 

FHLB advances — borrowings from the Federal Home 

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

Financial Report. Institutions that file a Call Report do not 

report borrowings (“advances”) from the FHLB separately. 

Goodwill and other intangibles — intangible assets 

include servicing rights, purchased credit card relationships 

and other identifiable intangible assets. 

Loans secured by real estate — includes home equity 

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

and all other loans secured by real estate. 

Loans to individuals — includes outstanding credit card 

balances and other secured and unsecured consumer loans. 

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

with remaining maturities or repricing intervals of over five years. 

Mortgage-backed securities — certificates of participation 

in pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored 

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

Net charge-offs — total loans and leases charged off 

(removed from balance sheet because of uncollectibility), 

less amounts recovered on loans and leases previously 

charged off. 

Net interest margin — the difference between interest and 

dividends earned on interest-bearing assets and interest 

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

made for interest income that is tax exempt. 

Net operating income — income excluding discretionary 

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

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

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

in nonaccrual status. 

FDIC Quarterly Banking Profile 

Notes to Users 22 First Quarter 1999 
Noncurrent loans & leases — the sum of loans and leases 

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

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

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

following: interest-rate contracts (defined as the notional 

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

contracts). 

Futures and forward contracts — a contract in which the 

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

specified future date, a specific quantity of underlying at a 

specified price or yield. These contracts exist for a variety of 

underlyings, including the traditional agricultural or physical 

commodities, as well as currencies and interest rates. Futures 

contracts are standardized and are traded on organized 

exchanges which set limits on counterparty credit exposure. 

Forward contracts do not have standardized terms and are 

traded over the counter. 

Option contracts — a contract in which the buyer acquires 

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

amount of underlying at a stated price (strike price) during a 

period or on a specified future date, in return for compensation (such as a fee or premium). The seller is obligated to purchase or sell the underlying at the discretion of the buyer of 

the contract. 

Swaps — an obligation between two parties to exchange a 

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

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

fixed, or determined for each settlement date by multiplying 

the quantity of the underlying (notional principal) by specified 

reference rates or prices. Except for currency swaps, the 

notional principal is used to calculate each payment but is not 

exchanged. 

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

issued to the U.S. Treasury, other borrowed money, mortgage indebtedness, obligations under capitalized leases and 

trading liabilities, less revaluation losses on assets held in 

trading accounts. 

Other real estate owned — primarily foreclosed property. 

Direct and indirect investments in real estate ventures are 

excluded. The amount is reflected net of valuation 

allowances. For institutions that file a Thrift Financial Report 

(TFR), the valuation allowance subtracted also includes 

allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported 

gross of valuation allowances. 

Percent of institutions with earnings gains — the percent 

of institutions that increased their net income (or decreased 

their losses) compared to the same period a year earlier. 

“Problem” institutions — federal regulators assign a composite rating to each financial institution, based upon an evaluation of financial and operational criteria. The rating is 

based on a scale of 1 to 5 in ascending order of supervisory 

concern. “Problem” institutions are those institutions with 

financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending upon the 

degree of risk and supervisory concern, they are rated either 

a “4” or “5”. For all BIF-member institutions, and for all SAIFmember institutions for which the FDIC is the primary federal regulator, FDIC composite ratings are used. For all SAIFFDIC Quarterly Banking Profile 

member institutions whose primary federal regulator is the 

OTS, the OTS composite rating is used. 

Reserves for losses — the allowance for loan and lease 

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

Financial Report (TFR) included specific reserves, while Call 

Report filers included only general valuation allowances. 

Beginning March 31, 1997, TFR reporters net these specific 

reserves against each loan balance. Also beginning March 

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

included in the general valuation allowance. 

Restructured loans and leases — loan and lease financing 

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

compliance with the modified terms. 

Return on assets — net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total assets. The basic yardstick of bank profitability. 

Return on equity — net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total equity capital. 

Risk-weighted assets — assets adjusted for risk-based 

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

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

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

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

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

Securities — excludes securities held in trading accounts. 

Banks’ securities portfolios consist of securities designated 

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

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

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

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

adjustments for income taxes. Thrift Financial Report (TFR) 

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

for sale. 

Troubled real estate asset rate — noncurrent real estate 

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

estate loans and other real estate owned. 

Unearned income & contra accounts — unearned income 

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

1997, TFR filers net the unearned income and the loans-inprocess against each loan balance, leaving just the 

unearned income on loans reported by Call Report filers. 

Unused loan commitments — includes credit card lines, 

home equity lines, commitments to make loans for construction, loans secured by commercial real estate, and unused 

commitments to originate or purchase loans. 

Volatile liabilities — the sum of large-denomination time 

deposits, foreign-office deposits, federal funds purchased, 

securities sold under agreements to repurchase, and other 

borrowings. 

Yield on earning assets — total interest, dividend and fee 

income earned on loans and investments as a percentage of 

average earning assets. 

First Quarter 1999 23 Notes to Users