1 ·

I\ 

I ·- - �· I 1 

The FDIC 

Third Quarter 1995 

FDIC 

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 

uarte r 1 Y-------Rick_l _Helf_er_, _Cha_irm _a_n _

anking Bofile 

COMMERCIAL BANKING PERFORMANCE - THIRD QUARTER 1995 

• Earnings Set Second Consecutive Quarterly Record 

• Lower Deposit Insurance Premiums Help Reduce Bank Expenses 

• Equity Capital Rises To Highest Level In Over 50 Years 

• Home Mortgages, Consumer Loans Account For Bulk Of Asset Growth 

Bank earnings soared to nt11\,/ heights in the third 

quarter. Insured commercial oanks reported $13.8 

billion in net income for the quarter, surpassing the 

previous quarter's earnings record of $12.0 billion by 

$1.8 billion (15 percent). The industry's return on 

assets (ROA) rose to a record 1.32 percent, from 1.16 

percent in the previous quarter, while the return on 

equity (ROE), at 16.30 percent, also set a new record. 

The previous records were both set in the third quarter 

of 1993, when ROA was 1.28 percent, and ROE was 

16.13 percent. Through the first nine months of 1995, 

banks have earned $36.9 billion, an 8.5-percent 

($2.9-billion) increase over the same period of 1994. 

ROA, at 1.19 percent, is almost unchanged from the 

1.18 percent ROA that banks posted in the first nine 

months of last year. 

Quarterly Net Incom e, 1991 · 1995 

$ Billions 

a Securities and Other Gains. Net I 13.8 14 ONet Operatin� Income - i 1 n.e 1 12.0 

11·5 I 1 11 2 - 107'11 1 "'" 08 I 

.5 '.11 it • ,tt � � ; � 

9 8

·1 •I.: 5.5 

• 4.6 3 I 

4 • 4. • 3.0 

II 

--; 

·

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

1991 1992 1993 1994 1995 

Several factors were responsible for the record earnings. Lower deposit insurance premiums, made possible by the recapitalization of the Bank Insurance 

Fund (BIF) at the end of May, reduced banks' thirdquarter operating costs by $1.5 billion. Noninterest 

income was $1.6 billion higher than in the second 

quarter, and was $2.0 billion more than banks earned 

in the third quarter of 1994. Net interest income also 

boosted earnings, rising $1.0 billion above the previous quarter. The only negative developments 

affecting earnings in the third quarter were higher 

loan-loss provisions (up $334 million from the second 

quarter, and $681 million more than a year ago), and 

lower gains from securities sales. At $134 million, 

gains from securities sales were $215 million lower 

than in the second quarter. 

The increase in net interest income was due to continued strong loan growth and stable net interest 

margins. Even though margins are narrower than a 

year ago, they have not declined in 1995 and remain 

above pre-1992 levels. Banks were able to offset a 

25 basis-point drop in the prime rate at the beginning 

of the quarter by increasing the proportion of loans in 

their asset portfolios, so that average asset yields 

rose very slightly. The small increase in yields cancelled out a similar rise in funding costs, leaving 

margins essentially unchanged from the previous 

quarter. 

Quarterly Net Interest Margins, 1991 - 1995 

Nat lnteres1 Margin (%) 

5 .0 �--.----.----.--"T""""T"'"""T"'""-,---,---,-,--,--;r--,r--,--,---,--., 

4.5 

•. .. .. Assets> $100 Million 4.30% .. .,• 4.0 

3.5 '-'---'--�-'---'---'---'----'----'---"--'--'--'----'"---'��� 1234123412341234123 

1991 1992 1993 1994 1995 

Requests for copies of and subscriptions to the FDIC Quarterly Banking Profile should be made through the FD/C's 

Office of Corporate Communications, 550 17th Street, NW, Washington, DC 20429; telephone (202) 898-6996. 

Internet address: World Wide Web, www.fdic.gov. or Gopher, gopher.fdic.gov. 
.... 

• 

� ... .

. .

Residential real estate loans and loans to consumers accounted for more than half (52.2 percent) of the $57.4-billion 

growth in commercial bank loans during the third quarter. 

Home mortgage loans increased by $14.6 billion. Creditcard loans increased by $7.9 billion, while other loans to 

consumers grew by $7.5 billion. Commercial real estate and 

construction loans increased by $4.1 billion. Loans to commercial and industrial borrowers, which had been growing 

strongly, increased by only $7.4 billion, their smallest quarterly rise in two years. Still, over the past 12 months, 

commercial and industrial loans have grown by $72.1 billion 

(12.5 percent). 

Expansion of Credit Card Lines, 1991 -1995 

September 30 Call Dates* 

$ Billion 

1,500 ,-----------------, 

1,000 

500 

0 

1991 1992 1993 1994 1995 

D Unused commtments .. 453.9 541.4 620.8 789.2 1,041.3 

D Securitized & sold .. 48.2 60.5 64.1 72.7 111.5 

• Held on-balan ce-sheet 131.2 129.7 141.9 169.8 200.6 

• Credh card loans that have been securitized and sold without recourse are only reported 

on the September 30 Call Report. 

•• OH-balance-sheet 

The $15.4-billion increase in consumer loans in the third 

quarter was larger than in either of the first two quarters of 

1995, but was well below the $22.4-billion growth registered 

in the third quarter of 1994. Through the twelve months 

ended September 30, consumer loans have increased by 

$57.6 billion. During the same period ending September 30, 

1994, consumer loans grew by $57.7 billion. This apparent 

stability in consumer lending is belied by the continued 

growth in outstanding credit-card loans that have been securitized and sold to others, and the even more rapid growth 

in lines of credit extended to credit-card customers that have 

not yet been used. Between the end of the third quarter of 

1994 and the end of this year's third quarter, banks increased the amount of credit-card loans securitized and sold 

by $38.8 bi!lion, to $111.5 billion. These amounts represent 

credit card loans that are "off-balance-sheet", that is, loans 

originated by banks that are not included in their loan portfolios. The 12-month growth in unused credit card lines of 

credit through September totaled $252.1 billion, a considerable jump from the previous 12-month period, when unused 

credit-card commitments grew by $168.3 billion. At the end 

Loans Past Due 30-89 Days 1991 -1995 

%of Loans 

3 0 ,----------------------. .

Loans to Individuals 

-· -·, ... I

2.0 , . . ... , . -. -. . ' - · Real Estate ............. -... / ............. ··· .... C&I • •• 1. ·-... 0 . ... 

-. ••············

••··•·• -- .... _ _.,,,.., 

011,er ... 0.0 ._.__._ _ __._ ____ .__..__..__-'--......_ _ _.___,_......._ ______ _._, 

1991 1992 1993 1994 1995 

The rapid growth in extensions of credit to consumers is 

motivated by the attractive yields consumer loans carry. 

Credit-card loans generated 12.2 percent of banks' total loan 

income in the first three quarters of 1995, even though they 

accounted for only 7.8 percent of banks' total loans. However, credit-card delinquency and charge-off rates have 

risen in the first three quarters of 1995, and this trend, if it 

persists, could make it difficult to sustain recent increases in 

consumer lending revenues. At the same time, the growth 

in consumer credit may indicate increased competition that 

will exert downward pressure on those attractive yields. At 

the end of September, there were 5,844 commercial banks 

reporting at least some credit-card loans in their portfolios; 

however, the fifty largest bank credit-card lenders together 

accounted for almost four-fifths (79.1 percent) of all creditcard loans. 

Noncurrent Loans* 

1991 -1995 

% of Loans 

5.0 r---------------------,

•

···· ··. .. C&I . 

' ..... .. ' ··. .. 2.5 - .... ·· .

.

. / .... 

·. 

. . ... Other ' ··. -·-·-·-·-. ' ... -·-·-· - . -·, ············-··-· . .:.·-·-·-···-· Loan to l11dJvid11als .... - ' ... - - of September, commercial banks had made over $1.6 trillion 

0 0 ........_, __ __. ___ ..__...._...._ __ _._ _ __.___.__. ___ .__...__ ...... 

in consumer credit available to customers, of which less than .

1991 1992 1993 1994 1995 

• Loans past due 90 or more days or in nonaccrual status. one-third - $518.5 billion -was "on-balance-sheet". 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 Third Quarter 1995 
, 

~ ·. / , Other - - - , 

Real Estate 

~,. _ _./ 

0.0 r-------__::~~\"1~~~~~ .... 

, .. . - . /-::. . - . I 

I

I 

1993 

Quarterly Net Charge-Offs (Annualized) although net charge-offs in the third quarter were 32.1 

1991 - 1995 percent ($786 million) higher than a year ago. 0/ ,o o f Lo ans 

Banks' net charge-offs in the third quarter were closely 

matched by loan-loss provisions, and the industry's reserves 3.0 ,, declined by only $58 million. Despite the small decline in Loans to Individuals 

reserves during the quarter, the industry's "coverage ratio" ' 

\ 

- ' . I increased slightly to $1.68 in reserves for every $1.00 of . 

• \' • •' ' \ 20 . , ••• .1 \ ,.: . \; .

C&I - . noncurrent loans, due to a $186-million decline in noncurrent ·-·, . - . , , loans. In the first three quarters of 1995, provisions were .. .... - . .... ....... ... $543 million more than net charge-offs, and reserves increased by $747 million. 

The record quarterly earnings also produced a record 

amount of retained earnings. Banks retained $6.8 billion of 

their third-quarter net income, up from $5.3 billion in the 

previous quarter and $4.9 billion a year ago. The previous 

quarterly record was $6.5 billion, reached in the first quarter 

of 1993. The resultant boost to capital helped to lift the 

,,· 

1.0 

-

1.0 U.........J........J...---1.........l.----'.--L-.-..L.....!...._...L....L....L....L....l.. __ __u 

1991 1992 1994 1995 

In general, the industry's asset quality remains robust. 

While delinquent loans (those 30-89 days past due) increased by $2.4 billion in the third quarter, and were up $5.1 

billion from a year ago, noncurrent loans (those 90 days or 

more past due, plus loans in nonaccrual status) continue to 

decline. At the end of the third quarter, they stood at $31.5 

billion, $186 million lower than at the end of the previous 

quarter, and $1.9 billion below the level of a year earlier. Net 

charge-offs are only 1.9 percent ($156 million) higher in the 

first three quarters of 1995 than in the same period of 1994, 

industry's equity-to-assets ratio to 8.14 percent, the highest 

level since 1941. 

The number of insured commercial banks declined by 114 

during the quarter, to 10,054 institutions. Mergers absorbed 

141 banks. Only two commercial banks failed during the 

quarter. There were 24 new banks chartered, and five savings institutions converted to commercial bank charters. The 

number of banks on the FDIC's "Problem List" declined by 

32, to 158, down from 190 at midyear. This is the lowest 

number of "problem" banks since 1973, when there were 

155. Assets of "problem" banks declined as well, falling by

$3 billion, to $20 billion.

Commercial and Industrial Loan Growth Rates* 

September 30, 1994 - September 30, 1995 

Puerto Alco 

29.4 

.. 

CJ Less than 0% 

2d 0% to5% 

-5%to10% • Some growth rates have been a�usted to reflect significant interstate miQrations. See Notes to Users 

- Greater than 10% pages 21-23. Growth in Comec:tlcut reflects a large purchase of loans from a non-banking institution. 

FDIC Quarterly Banking Profile 

Third Quarter 1995 3 FDIC-Insured Commercial Banks 
7.73 

14.4 

15.7 

8.5 

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

1995* 1994* 1994 1993 1992 1991 1990 

Return on assets (%) ................................................ . 1.19 1.18 1.15 1.20 0.93 0.53 0.48 

Return on equity(%) ............................................... .. 14.96 14.93 14.61 15.34 12.98 7.94 7.45 

Core capital (leverage) ratio (%) .............................. . 

Noncurrent assets plus 

7.73 7.64 7.65 7.20 6.48 6.17 

other real estate owned to assets (%)..................... 0.92 1.16 1.01 1.61 2.54 3.02 2.94 

Net charge-offs to loans(%)...................................... 0.45 0.49 0.50 0.85 1.27 1.59 1.43 

Asset growth rate(%)................................................ 7.81 8.03 8.21 5.72 2.19 1.22 2.73 

Net interest margin(%)............................................. 4.31 4.36 4.36 4.40 4.41 4.11 3.94 

Net operating income growth(%).............................. 8.27 17.45 16.19 35.38 92.41 -0.63 2.53 

Number of institutions reporting................................ 10,054 10,592 10,450 10,958 11,462 11,921 12,343 

Percentage of unprofitable institutions...................... 3.20 3.74 3.93 4.88 6.85 11.60 13.44 

Number of problem institutions.................................. 158 293 247 426 787 1,016 1,012 

Assets of problem institutions (in billions)................. $20 $36 $33 $242 $408 $528 $342 

Number of failed/assisted institutions........................ 6 11 11 42 100 108 159 

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

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

(dollar figures in millions) Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter %Change 

1995 1995 1994 94:3-95:3 

Number of institutions reporting ............................................. .. 10,054 10,168 10,592 -5.1 

Total employees (full-time equivalent) ................................... .. 1,482,537 1,479,375 1,484,441 -0.1 

CONDITION DATA 

Total assets ............................................................................ . $4,229,427 $4,170,732 $3,922,926 7.8 

Loans secured by real estate ........................................... . 1,070,946 1,050,005 971,128 10.3 

Commercial & industrial loans .......................................... . 647,434 640,059 575,371 12.5 

Loans to individuals .......................................................... . 518,475 503,092 460,859 12.5 

Farm loans ........................................................................ . 41,870 40,311 41,123 1.8 

Other loans & leases ....................................................... .. 282,904 270,891 238,284 18.7 

Less: Unearned income ................................................... .. 6,055 6,212 6,177 -2.0 

Total loans & leases .......................................................... .. 2,555,575 2,498,147 2,280,589 12.1 

Less: Reserve for losses .................................................... . 52,875 52,933 52,446 0.8 

Net loans & leases ................................................................ . 2,502,700 2,445,214 2,228,143 12.3 

Securities ............................................................................. .. 818,749 805,891 837,021 -2.2 

Other real estate owned ....................................................... . 7,006 7,351 11,922 -41.2 

Goodwill and other intangibles ............................................ .. 28,517 26,875 22,516 26.7 

All other assets ..................................................................... . 872,456 885,401 823,325 6.0 

Total liabilities and capital ....................................................... . 4,229,427 4,170,732 3,922,926 7.8 

Noninterest-bearing deposits ............................................... .. 556,269 562,726 543,056 2.4 

Interest-bearing deposits ...................................................... . 2,375,117 2,344,363 2,249,805 5.6 

Other borrowed funds .......................................................... .. 676,601 647,953 573,157 18.1 

Subordinated debt. ............................................................... . 43,724 42,201 38,601 13.3 

All other liabilities .................................................................. . 233,630 238,706 206,511 13.1 

Equity capital ........................................................................ . 344,086 334,798 311,797 10.4 

Loans and leases 30-89 days past due ................................. .. 31,125 28,733 26,037 19.5 

Noncurrent loans and leases ................................................. .. 31,480 31,666 33,403 -5.8 

Restructured loans and leases ............................................... . 4,532 5,468 6,374 -28.9 

Direct and indirect investments in real estate ........................ .. 626 578 604 3.7 

1-4 Family residential mortgages ........................................... . 622,091 607,489 549,990 13.1 

Mortgage-backed securities ................................................... . 329,188 320,023 330,987 -0.5 

Earning assets ....................................................................... .. 3,675,010 3,602,641 3,388,695 8.5 

Long-term assets (5+ years) .................................................. . 575,677 556,557 556,717 3.4 

Volatile liabilities .................................................................... .. 1,283,281 1;245,018 1,121,345 

Foreign office deposits ........................................................... . 449,645 439,551 403,247 11.5 

Unused loan commitments ..................................................... . 2,053,209 1,986,104 1,672,739 22.8 

Off-balance-sheet derivatives ................................................. . 18,241,514 17,913,479 15,768,164 

Preliminary Preliminary 

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

INCOME DATA 

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

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

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

Provision for loan losses ...................................... . 

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

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

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

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

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

Qtrs 1995 

$225,242 

110,081 

115,161 

8,804 

60,810 

111,076 

440 

19,674 

24 

Qtrs 1994 

$189,116 

80,297 

108,819 

8,033 

56,542 

105,871 

345 

17,792 

{29) 

%Cham1e 

19.1 

37.1 

5.8 

9.6 

7.6 

4.9 

27.6 

10.6 

N/M 

1995 

$77,826 

38,416 

39,410 

3,236 

21,730 

36,980 

134 

7,242 

0 

1994 

$65,074 

27,553 

37,521 

2,555 

19,696 

36,223 

{332) 

6,274 

4 

94:3-95:3 

19.6 

39.4 

5.0 

26.6 

10.3 

2.1 

N/M 

15.4 

-90.2 

Net income ......................................................... . 36,882 33,981 13,817 11,838 16.7 

Net charge-offs ..................................................... . 8,261 8,105 1.9 3,234 2,448 32.1 

Cash dividends ..................................................... . 19,999 17,928 11.6 7,056 6,903 2.2 

Net operating income ......................................... . 36,580 33,787 8.3 13,726 12,072 13.7 

N/M-Not meaningful 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 Third Quarter 1995 
- -

- -

3.6 

7.8 6.7 

9.4 

5.3 

47 

7.39 

TABLE Ill-A. First Three Quarters 1995, FDIC-Insured Commercial Banks 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East West I 

FIRST THREE QUARTERS Preliminary All than $100 to to than $10 North- South- Mid- South-

(The way it is ... ) Institutions Million $1 Billion $10 Billion Billion east east Central I west west West 

Number of institutions reporting ................ 10,054 6,830 2,816 339 69 811 1,671 2,195 2,527 1,789 1,061 

Total assets (in billions) ............................. $4,229.4 $301.6 $692.1 $1,066.9 $2,168.8 $1,613.6 $709.8 $692.5 $274.2 $315.5 $623.9 

Total deposits (in billions) .......................... 2,931.4 261.2 579.7 738.4 1,352.0 999.1 518.1 498.3 203.8 247.9 464.2 

Net income (in millions) ............................. 36,882 2,729 6,345 10,284 17,524 12,378 6,161 6,040 2,967 2,793 6,542 

% of unprofitable institutions ..................... 3.2 3.8 2.0 2.4 1.4 5.5 2.2 1.3 2.1 9.0 

% of institutions with earnings gains ......... 64.2 62.1 69.1 63.4 71.0 67.2 68.7 65.8 58.8 60.9 69.4 

Performance Ratios (annualized, %) 

Yield on earning assets ............................. 8.42 8.34 8.35 8.65 8.34 8.52 8.25 8.22 8.77 7.88 8.75 

Cost of funding earning assets .................. 4.12 3.59 3.61 3.93 4.48 4.58 3.98 4.08 4.05 3.54 3.49 

Net interest margin .................................... 4.31 4.76 4.75 4.72 3.86 3.94 4.27 4.13 4:73 4.34 5.26 

Noninterest income to earning assets ....... 2.27 1.28 1.36 2.47 2.65 2.80 1.75 1.61 2.56 1.75 2.51 

Noninterest expense to earning assets ..... 4.15 3.91 3.82 4.30 4.23 4.40 3.79 3.49 4.36 4.01 4.70 

Net operating income to assets ................. 1.18 1.24 1.26 1.32 1.08 1.01 1.20 1.18 1.53 1.21 1.43 

Return on assets ....................................... 1.19 1.24 1.26 1.31 1.10 1.04 1.19 1.19 1.53 1.21 1.43 

Return on equity ........................................ 14.96 12.00 13.64 15.53 15.77 14.06 14.80 14.60 17.43 14.22 16.83 

Net charge-offs to loans and leases .......... 0.45 0.20 0.32 0.67 0.40 0.60 0.27 0.27 0.49 0.20 0.59 

Loan loss provision to net charge-offs ...... 106.58 142.12 119.90 129.72 78.51 102.93 106.35 142.62 112.54 131.71 91.73 

Condition Ratios (%) 

Loss allowance to: 

Loans and leases ..........................•......... 2.07 1.60 1.63 2.08 2.28 2.48 1.67 1.71 1.75 1.55 2.36 

Noncurrent loans and leases .................. 167.97 144.84 148.97 180.59 169.64 146.50 202.05 195.19 205.82 178.79 171.20 

Noncurrent assets plus 

other real estate owned to assets ........... 0.92 0.85 0.87 0.89 0.95 1.14 0.69 0.64 0.65 0.64 1.18 

Equity capital ratio ..................................... 8.14 10.51 9.42 8.69 7.12 7.57 8.25 8.31 8.83 8.71 8.68 

Core capital (leverage) ratio ...................... 7.73 10.46 9.18 8.22 6.65 7.29 7.71 8.00 8.67 8.22 7.97 

Net loans and leases to deposits .............. 85.38 64.52 71.25 93.73 90.90 86.97 86.39 86.23 83.31 69.89 89.08 

Growth Rates (year-to-year, %) 

Assets ....................................................... 6.4 12.3 7.2 7.0 8.6 

Equity capital.. ........................................... 10.4 � - - 8.9 16.4 10.5 6.4 9.7 

Net interest income ................................... 5.8 3.2 9.4 2.9 6.0 9.3 

Net income ................................................ 8.5 - - - -0.2 10.2 10.6 3.9 8.7 28.4 

Noncurrent assets plus 

other real estate owned ........................... -14.7 . - - . -19.7 -5.6 -7.6 -13.2 -5.5 -13.3 

Net charge-offs .......................................... 1.9 . . - . -14.2 34.0 18.3 23.8 90.9 12.8 

- Loan loss provision ................................... 9.6 - - - -4.4 30.7 21.1 19.8 75.2 19.1 

PRIOR FIRST THREE QUARTERS 

(The way it was ... ) 

Number of institutions ....................... 1994 10,592 7,410 2,791 334 57 846 1,756 2,318 2,645 1,884 1,143 

......................................... 1992 11,590 8,435 2,781 326 48 941 1,901 2,559 2,813 2,066 1,310 

......................................... 1990 12,411 9,378 2,653 333 1,075 1,966 2,748 2,961 2,195 1,466 

Total assets (in billions) ..................... 1994 $3,922.9 $320.2 $678.9 $1,087.6 $1,836.3 $1,516.6 $632.0 $649.1 $255.7 $294.8 $574.8 

......................................... 1992' 3,481.3 345.2 676.2 1,035.1 1,424.8 1,326.5 532.0 571.3 234.1 275.1 542.4 

......................................... 1990 3,383.6 359.9 638.5 1,048.9 1,336.3 1,326.1 500.7 544.8 215.9 263.4 532.6 

Return on assets (%) ........................ 1994 1.18 1.18 1.22 1.40 1.04 1.11 1.22 1.15 1.52 1.17 1.20 

......................................... 1992 0.94 1.12 1.04 1.04 0.77 0.81 1.04 1.01 1.27 1.11 0.85 

......................................... 1990 0.61 0.83 0.86 0.52 0.50 0.24 0.70 0.86 1.05 0.53 1.06 

Net charge-offs to loans & leases (%) 

......................................... 1994 0.49 0.19 0.33 0.61 0.53 0.76 0.24 0.26 0.43 0.12 0.58 

......................................... 1992 1.24 0.47 0.69 1.35 1.57 1.74 0.75 1.02 0.83 0.75 1.13 

......................................... 1990 1.35 0.55 0.71 1.36 1.82 1.94 0.79 0.87 0.95 1.33 1.08 

Noncurrent assets plus 

OREO to assets (%) ...................... 1994 1.16 0.92 1.07 1.06 1.29 1.50 0.82 0.74 0.80 0.72 1.48 

......................................... 1992 2.83 1.53 1.95 2.51 3.80 3.88 1.90 1.51 1.42 1.89 3.65 

......................................... 1990 2.67 1.75 1.95 2.50 3.40 3.74 1.77 1.50 1.50 2.90 2.42 

Equity capital ratio (%) ...................... 1994 7.95 9.99 8.97 8.28 7.02 7.40 7.96 8.02 8.89 8.50 8.61 

......................................... 1992 9.55 8.28 7.67 6.23 6.57 7.75 7.87 8.68 7.48 7.91 

......................................... 1990 6.45 9.19 7.79 6.53 5.01 5.57 7.17 7.11 8.05 6.67 6.55 

REGIONS: Northeast-Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Puerto Rico, Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

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

FDIC Quarterly Banking Profile 

Third Quarter 1995 5 FDIC-Insured Commercial Banks 
• 

4,595 

3.6 

4.47 

4.75 

9.47 

TABLE IV-A. Third Quarter 1995, FDIC-Insured Commercial Banks 

Asset Size Distribution Geographic Distribution by Regio_n 

Less $100 Million $1 Billion Greater East I West 

THIRD QUARTER Preliminary 

(The way it is ... ) 

All 

Institutions 

than $100 

Million 

to 

$1 Billion 

to 

$10 Billion 

than $10 

Billion 

Northeast Southeast Central I Midwest 

Southwest West 

Number of institutions reporting ................ 10,054 6,830 2,816 339 69 811 1,671 2,195 2,527 1,789 1,061 

Total assets (in billions) ............................. $4,229.4 $301.6 $692.1 $1,066.9 $2,168.8 $1,613.6 $709.8 $692.5 $274.2 $315.5 $623.9 

Total deposits (in billions) .......................... 2,931.4 261.2 579.7 738.4 1,352.0 999.1 518.1 498.3 203.8 247.9 464.2 

Net income (in millions) ............................. 13,817 994 2,237 3,579 7,008 2,235 2,125 1,175 997 2,690 

% of unprofitable institutions ..................... 3.4 3.9 2.3 2.7 0 5.4 2.6 1.6 2.8 8.3 

% of institutions with earnings gains ......... 67.8 65.7 72.8 67.0 72.5 70.5 69.2 70.3 67.0 64.0 66.7 

Performance Ratios (annualized, %) 

Yield on earning assets ............................. 8.56 8.55 8.51 8.87 8.42 8.58 8.37 8.33 9.45 8.03 8.90 

Cost of funding earning assets .................. 4.23 3.79 3.76 4.07 4.54 4.63 4.09 4.20 3.66 3.61 

Net interest margin .................................... 4.34 4.76 4.80 3.88 3.95 4.28 4.12 4.98 4.36 5.29 

Noninterest income to earning assets ....... 2.39 1.36 1.38 2.56 2.82 2.91 1.78 1.68 2.86 1.75 2.76 

Noninterest expense to earning assets .... 4.07 3.82 3.74 4.31 4.09 4.34 3.67 3.42 4.46 3.84 4.56 

Net operating income to assets ................. 1.31 1.33 1.30 1.35 1.29 1.13 1.26 1.23 1.75 1.27 1.73 

Return on assets ....................................... 1.32 1.33 1.30 1.35 1.30 1.15 1.27 1.24 1.77 1.27 1.74 

Return on equity ........................................ 16.30 12.69 13.91 15.69 18.41 15.22 15.52 14.95 19.93 14.67 20.23 

Net charge-offs to loans and leases .......... 0.51 0.25 0.36 0.73 0.48 0.71 0.29 0.33 0.54 0.25 0.62 

Loan loss provision to net charge-offs ...... 100.06 128.66 116.08 141.28 59.02 90.14 115.32 139.68 115.78 130.08 84.01 

Growth Rates (year-to-year, %) 

Net interest income ................................... 5.03 - . . . 1.73 3.97 4.96 5.92 7.96 

Net income ................................................ 16.72 

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

Loan loss provision ................................... 

32.13 

26.64 

-

PRIOR THIRD QUARTERS 

(The way it was . .. ) 

Return on assets (%) ........................ 1994 

........................................ 1992 

........................................ 1990 

1.21 

0.98 

0.42 

1.20 

1.16 

0.77 

Net charge-offs to loans & leases (%) 

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

........................................ 1992 

........................................ 1990 

0.44 

1.31 

1.15 

0.21 

0.50 

0.61 

Quarterly Personal Bankruptcy Filings 

1990 -1995 Thousands 

240 .--�����������������--, 

220 

200 

180 

1990 1991 1992 

Source: American Bankruptcy Institute 

FDIC-Insured Commercial Banks 

3.07 18.15 15.59 14.84 20.95 49.31 

. - ., 27.73 32.13 41.77 23.32 87.99 35.07 

- 20.78 42.47 34.43 24.34 30.84 26.10 

1.27 1.40 1.08 1.17 1.21 1.14 1.62 1.12 1.26 

1.04 1.09 0.83 0.94 1.05 0.86 1.22 1.14 0.95 

0.80 0.36 0.20 -0.12 0.58 0.86 1.02 0.40 0.95 

0.35 0.56 0.42 0.61 0.26 0.26 0.48 0.15 0.52 

0.77 1.31 1.74 1.62 0.71 1.56 0.99 0.76 1.28 

0.81 1.45 1.18 1.45 0.95 0.67 0.91 1.52 1.03 

Credit Risk Diversification 

Retail Loans versus Loans to Commercial Borrowers 

% (as a% of Total Loans) of Loans 

80 

69 

60 

40 

20 

0 12/86 12/88 12/90 12/92 12/94 9/95 

Loans($ Billions): 

• Commercial $1,214 $1,268 $1,320 $1,192 $1,308 $1,421 

Retail 558 680 804 849 1,056 1,141 

Loans to Commercial Borrowers (Credit Risk Concentrated): These are loans with relatively large 

balances at risk to a single borrCNJer. A single loan may represent a significant proportion of an institution's 

capital or income. There.fore, a relatively small number of defaults could impair an institution's capital or 

income. These loans include commercial and industrial loans, mullifamily mortgages. commercial real 

estate, construction loans and agricultural loans. 

RetaM Loans (Credit Risk Diversified): These are loans that lypically have small balances spread among a 

large number of borrCNJers. A nurrt>er of defaults are likely but typically do not impair an institution's capital or 

income. These loans include consumer and credit card loans, 1-4 family residential mortgages and home 

equity loans. 

FDIC Quarterly Banking Profile 

6 Third Quarter 1995 
2.4 7.4 

2.3 

99.9 

34.7 

5.7 

TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

September 30, 1995 All than $100 to to than $10 North- South- Mid- SouthInstitutions Million $1 Billion $10 Billion Billion east east Central I west west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate .............................. 1.30 1.34 1.15 1.23 1.43 1.69 1.15 1.15 0.85 1.30 1.23 

Construction and development... ........................... 1.61 1.26 1.22 1.57 2.06 2.50 1.08 1.59 1.07 1.24 1.95 

Commercial real estate ......................................... 1.17 1.07 0.93 1.00 1.55 1.90 0.83 0.96 0.85 0.97 1.05 

Multifamily residential real estate .......................... 1.11 0.96 0.83 0.76 1.60 0.89 0.98 1.16 0.47 0.46 1.90 

1-4 Family residential' ........................................... 1.39 1.63 1.37 1.42 1.34 1.57 1.39 1.32 0.92 1.48 1.32 

Home equity loans ................................................. 0.90 1.35 0.95 0.80 0.91 1.26 0.70 0.70 0.65 2.17 0.70 

Commercial and industrial loans'' .......................... 0.85 1.43 1.36 1.01 0.52 0.61 0.80 1.08 1.54 1.21 0.83 

Loans to individuals ................................................. 2.06 2.16 1.79 2.12 2.09 2.35 1.77 2.03 2.03 1.80 1.88 

All other loans and leases (including farm) ............. 0.30 N/A N/A 0.63 0.25 0.26 0.26 0.64 0.15 0.33 0.24 

Memo: Commercial RE loans not secured by RE ... 0.80 0.62 0.68 0.81 0.81 0.94 0.43 0.85 0.85 1.91 0.70 

Percent of Loans Noncurrent*** 

All real estate loans ................................................. 1.53 1.01 1.12 1.35 2.01 2.47 0.98 0.94 0.80 0.94 1.88 

Construction and development. ............................. 2.92 1.14 1.47 2.64 4.85 6.41 1.40 2.17 0.80 1.13 4.20 

Commercial real estate ......................................... 2.36 1.26 1.52 2.12 3.51 4.39 1.49 1.31 1.36 1.27 2.57 

Multifamily residential real estate .......................... 2.80 1.44 1.33 1.79 4.78 3.93 1.17 1.56 1.08 0.70 5.28 

1-4 Family residenti<;tl' ........................................... 0.89 0.78 0.82 0.81 1.00 1.26 0.69 0.61 0.47 0.69 1.08 

Home equity loans ................................................. 0.54 0.87 0.54 0.48 0.57 0.81 0.35 0.33 0.29 0.84 0.54 

Commercial and industrial loans'* .......................... 1.22 1.46 1.43 0.92 1.16 1.40 0.78 1.09 1.26 1.18 1.37 

Loans to individuals ................................................. 1.16 0.74 0.60 1.17 1.43 1.87 0.72 0.75 0.94 0.52 0.82 

All other loans and leases (including farm) ............. 0.35 N/A N/A 0.51 0.32 0.45 0.17 0.17 0.21 0.28 0.38 

Memo: Commercial RE loans not secured by RE ... 1.43 1.06 0.69 0.56 1.72 3.80 0.45 0.47 0.68 0.51 0.46 

Percent of Loans Charged-off 

(net, annualized) 

All real estate loans ................................................. 0.18 0.06 0.14 0.19 0.22 0.33 0.04 0.05 0.01 -0.02 0.39 

Construction and development... ........................... 0.16 0.11 0.17 0.31 0.04 0.47 0.03 0.23 0.05 -0.20 0.19 

Commercial real estate ......................................... 0.34 0.07 0.22 0.39 0.46 0.65 0.07 0.08 -0.01 -0.06 0.79 

Multifamily residential real estate .......................... 0.30 0.19 0.26 0.39 0.28 0.62 0.02 0.02 0.06 -0.09 0.65 

1-4 Family residential' ........................................... 0.10 0.05 0.08 0.06 0.15 0.21 0.03 0.02 0.02 0.02 0.16 

Home equity loans ................................................. 0.19 0.16 0.13 0.09 0.27 0.17 0.05 0.04 0.00 0.08 0.45 

Commercial and industrial loans'* .......................... 0.20 0.32 0.29 0.12 0.18 0.33 0.06 0.12 0.16 0.20 0.12 

Loans to individuals ................................................. 1.60 0.50 0.89 1.83 1.79 1.98 1.18 1.05 1.86 0.75 2.05 

All other loans and leases (including farm) ............. 0.05 N/A N/A 0.30 -0.02 -0.03 0.08 0.09 0.07 0.12 0.21 

Memo: Commercial RE loans not secured by RE ... -0.08 0.53 0.78 -0.10 -0.16 -0.23 -0.08 -0.05 0.04 -0.23 0.04 

Loans Outstanding (in billions) 

All real estate loans ................................................. $1,070.9 $95.0 $245.4 $294.9 $435.7 $297.9 $238.2 $187.0 $71.7 $83.1 $193.0 

Construction and development. ............................. 68.1 6.4 18.1 21.3 22.4 11.6 19.0 11.6 4.5 6.9 14.6 

Commercial real estate ......................................... 294.4 25.3 81.3 87.0 100.7 73.0 66.7 56.1 18.7 23.4 56.4 

Multifamily residential real estate .......................... 35.3 2.2 8.5 11.1 13.5 9.4 7.3 6.4 2.4 

1-4 Family residential' ........................................... 543.2 47.8 116.3 147.3 231.8 153.7 125.4 91.4 35.8 46.6 90.3 

Home equity Joans ................................................. 78.9 12.9 25.1 38.6 24.9 15.8 15.4 2.7 1.0 19.1 

Commercial and industrial loans ............................. 647.4 27.6 72.4 147.9 399.5 252.0 94.7 120.0 36.1 44.8 

Loans to individuals ................................................. 518.5 26.9 81.8 217.2 192.6 185.7 88.7 89.7 40.7 34.9 78.8 

All other loans and leases (including farm) ............. 324.8 22.6 22.0 48.0 232.1 158.2 41.3 24.3 13.9 52.4 

Memo: Commercial RE loans not secured by RE ... 20.0 0.2 1.1 3.9 14.7 

Memoranda: 

Other Real Estate Owned (in millions) 

2.7 2.2 0.7 0.8 7.8 

All other real estate owned ...................................... $7,005 $663 $1,411 $1,307 $3,626 $3,103 $1,099 $525 $311 $448 $1,519 

Construction and development. ............................. 1,141.4 95.0 288.9 331.1 426.6 354.2 296.4 115.3 67.6 63.6 244.4 

Commercial real estate ......................................... 3,635.4 327.0 693.4 668.2 1,946.7 1,617.0 544.5 283.5 163.9 257.3 769.2 

Multifamily residential real estate .......................... 250.7 24.7 76.7 59.8 89.6 117.0 26.0 21.4 6.5 10.3 69.5 

1-4 Family residential. ........................................... 1,324.4 162.4 306.2 230.1 625.7 496.2 206.1 93.1 46.1 87.1 395.7 

Farmland ............................................................... 151.3 53.9 45.3 15.8 36.4 15.9 25.5 12.1 27.2 30.1 40.5 

Other real estate owned in foreign offices ............. 502.3 0.0 0.0 1.6 500.6 502.3 0.0 0.0 0.0 0.0 0.0 

'Excludes home equity loans. N/A - Not available 

'*Includes "All other loans" for institutions under $1 billion in asset size. 

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

FDIC Quarterly Banking Profile 

Third Quarter 1995 7 FDIC-Insured Commercial Banks 
1.9 

0 .2 

- I 

I I I I IJ I l I 

• 1. .~ • ·1 ·1 I 

I 

I 

l e 

I I 

- '--- �- --�----- �-- -

� ,� ...... �,.....-- °"" 

� ... 

.. �-· 2.5 •• 

1.5 

SAVINGS INSTITUTIONS PERFORMANCE - THIRD QUARTER, 1995 

• Savings Institutions Earn $2.2 Billion In The Third Quarter

• Gains From Asset Sales Lift Noninterest Income

• Loan Losses Down By One-Third From Last Year

Savings institutions earned $2.2 billion during the 

third quarter of 1995 for an annualized return on 

assets (ROA) of 0.87 percent. This was the second-highest quarterly ROA ever reported by thrifts. 

The industry reported an ROA of 0.94 percent in 

the first quarter of 1993, when earnings were elevated by extraordinary gains from changes in accounting rules. Earnings for the first three quarters 

of 1995 totaled nearly $6 billion, for an ROA of 0.80 

percent. This was an increase of over $1 billion 

from the same period in 1994 when the industry 

ROA was 0.67 percent. 

Quarterly Net Income, 1991 -1995 

$ Bilions 

3 • Securities and Other Gains, Net 

' D Net Operatilg Income 

2.2 

1.9 

2 

1 

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

1991 1992 1993 1994 1995 

Earnings in the third quarter were $313 million 

higher than in the second quarter. Noninterest 

income increased by $707 million, with one large 

California institution1 accounting for 92 percent of 

the increase. An increase of $309 million in the 

industry's tax bill and a $240-million increase in 

extraordinary losses offset some of the growth in 

noninterest income. Noninterest expense declined by $43 million during the third quarter. 

Lower insurance premiums made possible by the 

recapitalization of the Bank Insurance Fund (BIF) 

benefited the 434 savings institutions that have 

some or all of their deposits covered by BIF. The 

lower premiums on $176 billion in BIF deposits 

reduced the industry's noninterest expense by 

about $100 million. Without the reduction in premiums, noninterest expense would have increased 

slightly during the third quarter. Profitability improved for all size groups. 

For the first time in two years, net interest margins 

did not decline. Margins remained steady at 3.05 

percent in the third quarter. However, margins are 

down from the 3.35 percent figure reported in the 

third quarter of 1994. The apparent stability between the second and third quarter masks 

changes in net interest margins across the country. Thrifts in the Northeast Region reported a 

decline of 13 basis points in their net interest 

margins, to 3.45 percent. In the West Region, 

average margins increased 13 basis points, to 

2.73 percent, and Southwest Region thrifts reported an increase of 11 basis points, to 2.74 

percent. Thrifts in the western states emphasize 

adjustable-rate mortgages in their portfolios. 

Rates on most of these adjustable-rate mortgages 

are linked to an index that creates re-pricing lags 

as interest rates change. With the recent stabilization of interest rates, yields on these loans continued to increase as the indexed loan rates began 

to catch up to market rates. The 18 basis-point 

increase in asset yields in the West Region during 

the third quarter exceeded the increase in the 

Quarterly Net Interest Margins 

1991 -1995 

Net Interest Margin (%) 

4.5 I I I I I I I I I I 

4.0 Assets< $100 Million 3.45% 

V r--i... 

3.5 / .. ··-... ... ... . .. ... r-..... � ... ·- V .. •• "! 

.. 3.0 v .· .. V ... �· Assets >$100 MIiiion 3.03% 

1 2.0 Home Savings of America, IJWindale, California, reported a $649-

million increase in noninterest income due to gains on the sale of 

assets. This increase was largely offset by a $256-million increase in taxes and extraordinary restructuring charges of $234 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 

million. 1991 1992 1993 1994 1995 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 Third Quarter 1995 

3 
0.2 

··· ···-··· 

,. 

. . . 

...... ' ' ........ -·····" 

�.:\ 

� ft • \ ,.'. 

Region's cost of funds, which rose four basis 

points. The Northeast Region was the only region 

to report a decline in asset yields, down five basis 

points, while their cost of funds rose by eight basis 

points. 

Profitability in the West Region still lags the rest of 

the country. · However, with improvements in net 

interest margins and asset quality, this region has 

narrowed the profitability gap as compared to the 

rest of the nation. Institutions in the West Region 

reported the only aggregate ROA below 0.94 percent. Their aggregate ROA of 0.64 percent this 

quarter was up from 0.47 percent last quarter. Net 

income in this region rose by $126 million. Net 

interest income was up by $85 million and provisions declined by $10 million during the quarter. 

Over 15 percent of the institutions in this region 

were unprofitable in the third quarter. 

Savings institutions passed along increases in 

earnings to stockholders as dividends. Earnings 

for the third quarter of 1995 were $338 million 

greater than the third quarter of 1994. However, 

dividends were $360 million higher. As a result, 

retained earnings, at just under $1.4 billion, were 

slightly lower than a year ago. 

Reductions in noncurrent commercial real estate 

loans drove down noncurrent real estate loan rates 

to 1.36 percent from 1 .41 percent at the end of last 

quarter. A $294-million reduction in noncurrent 

noncurrent real estate plus other real estate owned 

(OREO) as a percent of total real estate loans plus 

OREO - fell below the two-percent mark to 1.92 

percent during the third quarter. This ratio had 

been as high as 6.26 percent in early 1991 when 

real-estate assets were adversely affected by 

downturns in several regional markets. 

Loan-loss reserves declined by $157 million during 

the third quarter. Because total noncurrent loans 

declined by $193 million, the "coverage ratio" (reserves to noncurrent loans) remained steady at 82 

cents for each dollar of noncurrent loans. Provisions for loan losses were down by $16 million to 

$504 million, while net charge-offs were down by 

$35 million to $553 million for the quarter. Net 

charge-offs declined by $98 million in the West 

Region offsetting increases in the other regions. 

The industry's net charge-offs for the first three 

quarters of 1995, at $1.6 billion or 0.34 percent of 

loans, are down by over one-third from the pace 

set in the same period of 1994, when loan losses 

were $2.5 billion, or 0.53 percent of loans. 

Quarterly Net Charge-Off Rates 

Total Loans by Region 

1990-1995 

Percent 

1.6�------------------, 

l.4 •

• � West 

1 . 2 •• \ 

commercial real estate loans offset a $164-million 

1.0 increase in noncurrent 1-4 family loans. Rates for , . noncurrent commercial real estate loans fell from 0.8 /\_ ......

.

. ·· \. \. ;' . -:\ . ' ,· 

Northeast · ... .'tf.····. / '• .. 3.26 percent to 2.74 percent, and rates increased 0.6 , , .. , ... \ ,. . slightly for 1-4 family loans, from 1.15 percent to 

1.17 percent. Troubled real estate asset rates -

Coverage Ratio and Reserve Levels* 

1990-1995 

$ Billions Coverage Ratio 1991 1992 1993 1994 1995 

40�---------------� 100 

Savings institutions continued to increase the 

share of 1-4 family residential mortgages in their 

NoncurrentLoans($) 75 asset portfolios. Loans secured by 1-4 family resi­

-··· ...... � ........ .. dential properties grew by $6.5 billion during the 

···�overage Ratio (%) •• •• 50 third quarter. This increase helped push total as­

""' .. ... sets up by $7.2 billion. Loans secured by multi­ . ·• ···

· · · ··

30 

20 

· ····· •· family residential properties declined by over $1 

-·· 25 billion, primarily due to one institution in New York2. .... -·· -·· -.. -·· ... -··-·· -·· ... -.. -.. -•• ••

••••••••••• 

Loan-Loss Reserves ($) 

123 4123412341234 1 2341 23 

2

East New York Savings Bank, New York, New York, exchanged 

1990 1991 1992 1993 1994 1995 its multifamily real estate loans for loans secured by 1-4 family 

• Loan-Loss Reserves to Noncurrent Loans and Leases residential prpperties held by a subsidiary. 

FDIC Quarterly Banking Profile 

Third Quarter 1995 9 FDIC-Insured Savings Institutions 

10 
Midwest 

Loans to individuals increased by $1.2 billion during the quarter. These consumer loans also 

showed an increase in noncurrent rates from 0.78 

percent last quarter to 0.85 percent. 

Thrifts reduced their reliance on deposits to fund 

their operations, and returned once again to funding operations with other borrowed funds. Deposits declined during the quarter by $2.4 billion, 

while other borrowed funds increased by $7.3 

billion. Equity capital increased by $1.9 billion to 

8.31 percent of assets, the highest level since 

1951. 

The number of savings institutions declined by 25, 

from 2,083 to 2,058 institutions at the end of the 

third quarter. The commercial bank industry 

picked up 16 savings institutions, with $8.3 billion 

in assets, through acquisitions and charter conversions during the third quarter. Consolidation within 

the thrift industry accounted for a decline of eight 

institutions. No thrifts failed in the third quarter. 

During the third quarter, 19 institutions, with $3.5 

billion in assets, converted from mutual to stock 

ownership. The number of "problem" institutions 

dropped to 59 from 64 last quarter. Assets of 

"problem" institutions declined to $17.2 billion. 

Noncurrent Loan Rates* 

September 30, 1995 

Central Northeast 

Puerto 

Rico 

2.6 

mi� 

• Greater than 1.5% 

• Between .75%and 1.5% • Noncurrent loan rates represent the percentage of loans that are past due 90 days 

D Less than .75% or more or in nonaccrual status.

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Third Quarter 1995 
• 

7.57 

59 

$17 $59 $39 $92 

3.1 

TABLE 1-8. Selected Indicators, FDIC-Insured Savin s Institutions* 

1995** 1994** 1994 

Return on assets (%) ............................................... 0.80 

Return on equity (%) ............................................... 9.82 

Core capital (leverage) ratio(%) ............................. 7.84 

Noncurrent assets plus 

other real estate owned to assets (%) ................... ·1.21

Net charge-offs to loans (%) .................................... 0.34 

Asset growth rate(%) .............................................. 1.83 

Net interest margin(%) ........................................... 3.07 

Net operating income growth (%) ............................ 16.03 

Number of institutions .............................................. 2,058

0.67 0.66 

8.34 8.28 

7.70 7.65 

1.57 1.38 

0.53 0.51 

0.02 0.77 

3.38 3.34 

22.90 22.25 

2,181 2,152 

1993 

0.70 

9.24 

7.45 

2.10 

0.65 

-2.85

3.48 

21.21 

2,262 

1992 1991 

0.65 0.08 

9.48 1.26 

6.77 5.54 

3.07 3.96 

0.59 0.65 

-7.44 -11.61

3.40 2.76 

N/M N/M 

2,390 2,561 

1990 

-0.37 

-6.68

4.62

3.98

0.61

-11.79

2.27 

N/M 

2,815 

Percentage of unprofitable institutions .................... 5.20 6.56 6.92 5.88 18.35 30.09 

Number of problem institutions,. .............................. 84 71 146 276 410 480 

Assets of problem institutions (in billions) ............... $183 $291 $298

Number of failed/assisted institutions ...................... 2 2 4 8 81 163 223

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

TABLE 11-B. Aggregate Condition and Income Data, FDIC-Insured Savings Institutions* 

(dollar figures in millions) Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter %Change 

1995 1995 1994 94:3-95:3 

Number of institutions reporting .............................................. . 2,058 2,083 2,181 -5.6 

Total employees (full-time equivalent) .................................... . 250,459 253,059 270,037 -7.3 

CONDITION DATA 

Total assets ............................................................................ . $1,024,573 $1,017,335 $1,006,189 1.8 

Loans secured by real estate ........................................... . 612,341 607,251 594,310 3.0 

1-4 Family residential.. ................................................... . 479,436 472,982 456,771 5.0 

Multifamily residential property ....................................... . 61,495 62,544 63,640 -3.4 

Commercial real estate ................................................... . 50,294 51,249 53,356 -5.7 

Construction, development and land .............................. . 21,115 20,476 20,544 2.8 

Commercial & industrial loans .......................................... . 12,002 11,707 9,517 26.1 

Loans to individuals .......................................................... . 39,832 38,634 38,601 3.2 

Other loans & leases ........................................................ . 1,791 1,777 1,552 15.4 

Less: Unearned income & contra accounts ...................... . 9,952 9,700 10,725 -7.2 

Total loans & leases ................................... ,; ...................... . 656,014 649,669 633,255 3.6

Less: Reserve for losses .................................................... . 7,312 7,469 8,058 -9.3

Net loans & leases ................................................................ . 648,702 642,200 625,197 3.8

Securities .............................................................................. . 290,434 289,370 296,075 -1,9

Other real estate owned ....................................................... . 3,497 3,676 5,063 -30.9

Goodwill and other intangibles ............................................. . 6,844 6,402 5,823 17.5

All other assets ..................................................................... . 75,096 75,685 74,030 1.4

Total liabilities and capital. ..................................................... .. 1,024,573 1,017,335 1,006,189 1.8

Deposits ................................................................................ . 742,370 744,819 748,323 -0.8

Other borrowed funds ........................................................... . 182,423 175,171 163,390 11.7

Subordinated debt. ............................................................... . 2,543 2,598 2,485 2.3

All other liabilities .................................................................. . 12,135 11,527 11,080 9.5

Equity capital ........................................................................ . 85,102 83,219 80,911 5.2

Loans and leases 30-89 days past due ................................. .. 8,568 7,839 8,308 

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

Restructured loans and leases ............................................... . 

Direct and indirect investments in real estate ......................... . 

Mortgage-backed securities ................•................................... 

Earning assets ........................................................................ . 

FHLB Advances (TFR filers only) .......................................... .. 

Unused loan commitments ..................................................... . 

Preliminary 

First Three 

INCOME DATA Qtrs 1995 

Total interest1ncome ............................................ . $53,695 

Total interest expense .......................................... . 32,177 

Net interest income ............................................ . 21,518 

Provision for loan losses ..................................... .. 1,506 

Total noninterest income ...................................... . 5,663 

Total noninterest expense ... .' ................................ . 16,420 

Securities gains (losses) ...................................... . 352 

Applicable income taxes ...................................... .. 3,390 

Extraordinary gains, net ...................................... . (238) 

Net income ......................................................... . 5,979 

Net charge-offs ..................................................... . 1,608 

Cash dividends ..................................................... . 2,505 

Net operating income ........................................ .. 5,971 

8,932 

6,342 

327 

211,895 

959,344 

80,374 

82,041 

First Three 

Qtrs 1994 

$47,940 

24,735 

23,205 

1,926 

4,430 

17,684 

285 

2,966 

(432) 

4,912 

2,452 

1,554 

5,146 

9,125 

6,606 

345 

216,530 

952,067 

79,376 

79,511 

Preliminary 

3rd Quarter 

%Change 1995 

12.0 $18,523 

30.1 11,261 

-7.3 7,262 

-21.8 504 

27.8 2,385 

-7.2 5,493 

23.4 181 

14.3 1,369 

N/M (241) 

21.7 2,220 

-34.4 553 

61.2 841 

16.0 2,333 

10,764 

8,042 

492 

216,335 

940,391 

83,362 

70,929 

3rd Quarter 

1994 

$16,566 

8,780 

7,786 

481 

1,725 

5,818 

25 

1,090 

(265) 

1,882 

799 

481 

2,134 

-17.0

-21.1

-33.4

-2.1

2.0

-3.6 

15.7

%Change 

94:3-95:3 

11.8 

28.3 

-6.7 

5.0 

38.2 

-5.6 

629 

25.6 

N/M

18.0 

-30.8

74.7

9.3 

"Excludes institutions in Resolution Trust Corporation conservatorship and one self-liquidating institution. N/M - Not meaningful 

FDIC Quarterly Banking Profile 

Third Quarter 1995 11 FDIC-Insured Savings Institutions 
- -

- - -

35 

$74.7 

57.7 

7.3 

79.54 

47.95 

3.5 0.7 -5.6 

·3.8 

-7.3 -4.4 

-34.4 

3.73 

3.34 

7.33 

4.77 

TABLE 111-B. First Three Quarters 1995, FDIC-Insured Savings Institutions* 

Asset Size Distribution GeoQraphlc Distribution by Region 

Less $100 Million $1 Billion Greater East West I 

FIRST THREE QUARTERS Preliminary All than $100 to to than $5 North- South- Mid- South-

(The way it is ... ) Institutions Million $1 Billion $5 Billion Billion east east Central west west West I

Number of institutions reporting ................ 2,058 924 973 126 764 313 525 157 138 161 

Total assets (in billions) ............................. $1,024.6 $47.3 $281.6 $266.9 $428.7 $346.7 $167.4 $52.8 $75.0 $308.0 

Total deposits (in billions) .......................... 742.4 40.1 226.5 196.1 279.6 273.9 122.8 36.0 46.9 205.1 

Net income (in millions) ............................. 5,978.9 241.2 1,706.2 1,649.6 2,381.9 2,228.9 483.8 1,124.9 394.9 508.6 1,237.8 

% of unprofitable institutions ..................... 5.2 6.5 4.0 5.6 2.9 3.9 3.2 2.5 2.9 18.0 

% of institutions with earnings gains ......... 44.6 39.4 47.4 57.1 57.1 46.6 47.0 42.9 45.9 39.1 39.1 

Performance Ratios (annualized, %) 

Yield on earning assets ............................. 7.67 7.79 7.74 7.72 7.56 7.67 7.88 7.70 7.73 7.77 7.56 

Cost of funding earning assets .................. 4.59 4.26 4.31 4.54 4.85 4.11 4.67 4.66 4.84 5.11 4.90 

Net interest margin .................................... 3.07 3.53 3.43 3.18 2.71 3.56 3.20 3.04 2.89 2.65 2.66 

Noninterest income to earning assets ....... 0.81 0.55 0.61 0.85 0.95 0.65 0.74 0.85 0.88 1.00 0.91 

Noninterest expense to earning assets ..... 2.34 2.83 2.59 2.49 2.03 2.53 2.47 2.34 2.12 2.24 2.18 

Net operating income to assets ................. 0.80 0.68 0.79 0.81 0.81 0.88 0.84 0.87 0.87 0.86 0.64 

Return on assets ....................................... 0.80 0.69 0.83 0.84 0.76 0.90 0.88 0.91 1.01 0.93 0.54 

Return on equity ........................................ 9.82 6.70 8.88 10.26 10.84 10.26 10.07 10.31 12.44 13.04 7.58 

Net charge-offs to loans and leases ........ 0.34 0.14 0.16 0.38 0.45 0.39 0.15 0.14 0.17 0.21 0.48 

Loan loss provision to net charge-offs ...... 93.68 111.63 135.59 87.47 86.40 84.69 103.05 135.45 192.66 143.46 83.89 

Condition Ratios (%) 

Loss allowance to: 

Loans and leases .................................... 1.11 0.82 1.06 1.25 1.11 1.36 0.93 0.77 0.80 0.98 1.18 

Noncurrent loans and leases .................. 81.86 72.24 89.32 87.75 75.31 75.33 74.81 125.19 126.73 82.12 78.47 

Noncurrent assets plus 

other real estate owned to assets ........... 1.21 1.02 1.08 1.38 1.22 1.51 1.05 0.52 0.59 1.04 1.44 

Noncurrent RE loans to RE loans ............. 1.36 1.09 1.16 1.42 1.49 1.81 1.19 0.57 0.61 1.22 1.53 

Equity capital ratio ..................... ............... 8.31 10.61 9.60 8.43 7.12 8.87 8.99 9.05 8.29 7.47 7.31 

Core capital (leverage) ratio ...................... 7.84 10.42 9.29 7.89 6.53 8.44 8.59 8.63 7.65 7.09 6.78 

Gross real estate assets to gross assets .. 79.48 72.27 74.83 83.32 73.17 77.66 79.90 78.22 79.84 86.92 

Gross 1-4 family mortgages to gr. assets. 46.02 51,83 46.12 41.27 48.27 40.88 50.89 46.63 40.02 50.06 

Net loans and leases to deposits .............. 87.38 79.03 80.11 83.00 97.54 72.69 85.33 89.76 92.15 95.67 103.43 

Growth Rates (year-to-year, %) 

Assets ....................................................... 1.8 -9.3 9.3 31.7 

Equity capital.. ........................................... 5.2 13.5 - . 8.5 6.2 32.3 -5.8 

Net interest income ................................... - . . -12.9 -2.3 -0.5 20.9 -17.6 

Net income ................................................ 21.7 -2.1 -8.6 29.4 83.2 25.9 100.9 

Noncurrent assets plus 

other real estate owned ........................... -21.5 - - - . -24.0 -12.9 0.4 -3.6 -4.5 -26.2 

Net charge-offs .......................................... . - - . -19.9 ·20.5 46.5 96.7 8.9 -49.5 - Loan loss provision ................................... -21.8 . . . ·10.0 6.4 65.1 105.5 106.5 -44.8 

PRIOR FIRST THREE QUARTERS 

(The way It was ... ) 

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

....................................... 1992 2,443 1,129 1,123 161 30 867 427 601 183 157 208 

....................................... 1990 2,867 1,345 1,275 210 37 996 529 673 208 202 259 

Total assets (in billions) ..................... 1994 $1,006.2 $51.3 $290.8 $297.0 $367.1 $335.0 $82.4 $153.2 $52.4 $56.9 $326.3 

....................................... 1992 1,048.5 56.5 326.6 331.0 334.4 357.1 111.4 151.2 49.2 61.3 318.3 

....................................... 1990 1,299.8 65.8 372.8 437.0 424.3 419.7 159.8 176.4 60.3 81.6 402.0 

Return on assets (%) ........................ 1994 0.67 0.82 0.84 0.80 0.40 0.92 0.89 0.77 0.57 0.96 0.26 

................................. , ..... 1992 0.64 0.85 0.79 0.56 0.53 0.49 0.78 0.88 0.98 1.52 0.42 

....................................... 1990 -0.23 0.12 -0.08 -0.44 -0.21 -0.56 -0.51 0.27 -0.03 -0.39 0.01 

Net charge-offs to loans & leases (%) 

....................................... 1994 0.53 0.11 0.21 0.50 0.85 0.49 0.18 0.11 0.09 0.31 0.89 

....................................... 1992 0.56 0.22 0.36 0.64 0.73 0.86 0.38 0.20 0.19 0.28 0.56 

....................................... 1990 0.52 0.22 0.46 0.65 0.50 0.72 0.56 0.25 0.48 0.88 0.38 

Noncurrent assets plus 

OREO to assets (%) ............... 1994 1.57 1.17 1.35 1.67 1.73 2.06 1.10 0.56 0.62 1.44 1.85 

....................................... 1992 3.33 1.90 2.60 3.48 4.14 4.21 2.71 1.12 1.29 4.37 

....................................... 1990 3.71 2.33 3.26 4.66 4.30 3.78 1.34 2.50 14.14 2.17 

Equity capital ratio (%) ...................... 1994 8.04 9.82 8.97 8.12 7.00 8.46 8.47 8.71 7.86 7.43 

....................................... 1992 6.99 8.32 7.45 6.81 6.49 6.98 7.24 7.66 6.77 6.16 6.79 

....................................... 1990 5.30 7.16 6.39 4.74 4.63 6.33 6.13 3.40 2.26 4.97 

*Excludes 1nst1tut1ons 1n Resolullon Trust Corporation conservatorsh1p and one self-hqu1dallng 1nst1tut1on. 

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

Vermont, U.S. Virgin Islands 

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

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

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

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 12 Third Quarter 1995 
. 

--

- - - -

175 490 

3.5 

7.79 

4.97 

5.0 75.5 

5.53 

TABLE IV-8. Third Quarter 1995, FDIC-Insured Savings Institutions* 

Asset Size Distribution Geographic Distribution bv Region 

Less $100 Million $1 Billion Greater East I West 

THIRD QUARTER Preliminary All than $100 to to than $5 North- South- Mid- South-

(The way it is ... ) Institutions Million $1 Billion $5 Billion Billion east east Central west west West 

Number of institutions reporting ................ 2,058 924 973 126 35 764 313 525 157 138 161 

I

Total assets (in billions) ............................. $1,024.6 $47.3 $281.6 $266.9 $428.7 $346.7 $74.7 $167.4 $52.8 $75.0 $308.0 

Total deposits (in billions) .......................... 742.4 40.1 226.5 196.1 279.6 273.9 57.7 122.8 36.0 46.9 205.1 

Net income (in millions) ............................. 2,220 91 614 639 876 810 392 137 216 

% of unprofitable institutions: .................... 5.2 7.1 4.8 2.9 4.2 6.4 3.4 2.5 5.8 15.5 

% of institutions with earnings gains ......... 44.8 39.2 46.7 64.3 68.6 48.0 44.1 38.1 51.6 42.0 47.8 

Performance Ratios (annualized, %) 

Yield on earning assets ............................. 7.92 7.88 7.85 7.67 7.72 7.99 7.81 7.83 7.98 7.75 

Cost of funding earning assets .................. 4.74 4.48 4.51 4.68 4.95 4.27 4.83 4.82 5.24 5.02 

Net interest margin .................................... 3.05 3.45 3.38 3.17 2.72 3.45 3.16 2.99 

Noninterest income to earning assets ....... 1.00 0.57 0.64 0.93 1.34 0.68 0.85 0.87 

Noninterest expense to earning assets., .. 2.31 2.78 2.54 2.40 2.05 2.40 2.45 2.30 

Net operating income to assets ................. 0.92 0.70 0.83 0.92 1.00 0.91 0.88 0.89 

Return on assets ....................................... 0.87 0.78 0.88 0.96 0.83 0.95 0.94 0.94 

Return on equity ........................................ 10.60 7.37 9.24 11.54 11.65 10.77 10.55 10.47 

Net charge-offs to loans and leases .......... 0.34 0.08 0.18 0.43 0.42 0.41 0.18 0.24 

Loan loss provision to net charge-offs ...... 91.20 157.02 110.21 85.95 87.81 80.24 119.62 85.89 

Growth Rates (year-to-year, %) 

Net interest income ................................... -6.7 - -7.1 -15.1 -3.5 

Net - . T income ................................................ 18.0 -3.3 -0.7 16.6 

Net charge-offs .......................................... -30.8 -23.9 58.7 131.0 

2.86 

0.79 

2.14 

0.83 

1.04 

12.67 

0.15 

132.50 

-3.0 

22.6 

66.4 

2.74 

1.03 

2.21 

1.03 

1.16 

15.91 

0.26 

109.82 

29.0 

117.0 

12.6 

2.73 

1.50 

2.23 

0.94 

0.64 

8.78 

0.41 

95.43 

-12.2 

52.6 

-51.9 

Loan loss provision ................................... . . - 9.3 85.5 100.5 96.8 -19.9 

PRIOR THIRD QUARTERS 

(The way it was ... ) 

Return on assets (%) ........................ 1994 

....................................... 1992 

....................................... 1990 

0.76 

0.60 

-0.48 

0.79 

0.93 

0.07 

0.84 

0.86 

-0.30 

0.91 

0.33 

-0.72 

0.56 

0.56 

-0.49 

1.01 

0.43 

-0.91 

0.87 

0.78 

-0.85 

0.88 

0.91 

0.18 

0.87 

1.03 

-0.18 

0.71 

1.78 

-0.36 

0.40 

0.29 

-0.26 

Net charge-offs to loans&leases (%) 

....................................... 1994 0.51 0.10 0.22 0.46 0.82 

....................................... 1992 0.56 0.19 0.33 0.67 0.74 

....................................... 1990 0.60 0.26 0.57 0.71 0.59 

*Excludes 1nst1tut1ons 1n Resolution Trust Corporation conservatorsh1p and one self-llqu1dat1ng 1nst1tut1on. 

0.56 

0.89 

0.90 

0.11 

0.32 

0.75 

0.12 

0.14 

0.23 

0.10 

0.17 

0.31 

0.40 

0.23 

0.39 

0.79 

0.58 

0.46 

U.S. Treasury Yield Curve 

September 30, 1994 - September 30, 1995 

Spot Yield (%) 

8 

······ ········· ········· . .. .. . 7 6/30/95 •••••••• -· �-� 

------ r

6 ·· -· � ,::

·· ----.,.-. -��... .. , __ _... ....... -- -;e,

"!s;a - - .. .. ·- ...... .. ....___ 5 . .. 9/30/94 

•• .. 

4 

Maturity 

9/30/95 

6/30/95 

3/31/95 

3-Mo.

5.40 

5.60 

5.70 

6-Mo.

5.57 

5.59 

5.85 

1 Yr. 

5.65 

5.65 

6.49 

2 Yr. 

5.83 

5.79 

6.80 

3 Yr. 

5.91 

5.88 

6.92 

5 Yr. 

6.01 

5.98 

7.08 

7 Yr. 

6.11 

6.12 

7.17 

10 Yr. 

6.17 

6.21 

7.20 

30Yr. 

6.49 

6.63 

7.44 

12/31/94 6.22 7.20 7.69 7.80 7.83 7.84 7.84 7.89 

9/30/94 4.67 5.22 5.96 6.62 6.92 

Source: Federal Reserve's H.15 Statistical Release. 

7.28 7.46 7.62 7.82 

FDIC Quarterly Banking Profile 

Third Quarter 1995 13 FDIC-Insured Savings Institutions 
3.33 

$46.7 

3.5 

2.4 5.6 3.7 

3.5 

4.5 

3.5 7.4 

3.53 

3.47 

3/95 

6/95 

TABLE VB L oan p rf e ormance, FDIC I • nsure dS avmgs nst1tut1ons 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East West I 

September 30, 1995 All than $100 to to than $5 -North- South- Mid- SouthInstitutions Million $1 Billion $5 Billion Billion east east Central I west west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate .............................. 1.24 2.00 1.27 1.09 1.23 1.41 1.32 1.05 1.18 1.12 1.21 

Construction, development and land ..................... 1.17 1.67 1.26 1.12 0.79 1.47 1.09 1.33 1.44 0.53 1.14 

Commercial real estate ......................................... 1.21 1.79 1.38 1.24 0.87 1.51 1.18 1.17 0.82 1.35 0.78 

Multifamily residential real estate .......................... 0.72 1.36 0.93 0.64 0.66 0.90 1.20 0.74 0.73 0.76 0.62 

1-4 Family residential.. .... ,....................... ; .............. 1.32 2.07 1.28 1.14 1.35 1.44 1.37 1.06 1.22 1.19 1.38 

Commercial and industrial loans ............................. 1.35 1.88 1.86 1.26 0.77 1.48 1.59 1.29 1.24 2.32 0.51 

Loans to individuals ................................................. 1.95 2.25 1.91 2.17 1.76 2.37 2.15 2.00 2.36 0.84 1.73 

Percent of Loans Noncurrent•• 

All real estate loans ................................................. 1.36 1.09 1.16 1.42 1.49 1.81 1.19 0.57 0.61 1.22 1.53 

Construction, development and land ..................... 1.52 1.23 1.47 1.79 1.39 0.80 0.75 0.55 0.60 2.18 

Commercial real estate ......................................... 2.74 1.99 2.51 3.72 2.15 3.76 2.27 1.38 2.16 1.45 2.28 

Multifamily residential real estate .......................... 

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

Commercial and industrial loans ............................. 

1.67 

1.17 

2.04 

1.63 

0.98 

2.33 

1.86 

0.89 

2.19 

1.95 

1.01 

2.58 

1.44 

1.45 

1.07 

2.67 

1.40 

2.51 

1.86 

1.08 

3.17 

1.09 

0.46 

1.47 

1.02 

0.46 

1.09 

1.64 

1.20 

1.80 

1.41 

1.47 

0.57 

Loans to individuals ................................................. 0.85 1.05 0.81 0.85 0.84 1.14 0.77 0.95 0.61 0.46 0.64 

Percent of Loans Charged-off 

(net, annualized) 

All real estate loans ................................................. 0.28 0.12 0.13 0.30 0.38 0.33 0.11 0.04 0.06 0.11 0.45 

c·onstruction, development and land ..................... 

Commercial real estate ......................................... 

0.36 

0.81 

0.10 

0.66 

0.19 

0.31 

0.92 

1.20 

0.07 

1.04 

1.29 

1.09 

0.09 

0.34 

0.02 

0.15 

0.00 

0.69 

0.07 

0.21 

0.34 

0.99 

Multifamily residential real estate ........................... 

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

Commercial and industrial loans ............................. 

0.60 

0.17 

0.51 

0.65 

0.04 

0.77 

0.50 

0.07 

0.44 

0.50 

0.11 

0.79 

0.69 

0.29 

0.17 

0.51 

0.16 

0.79 

1.06 

0.05 

0.24 

0.10 

0.03 

0.08 

0.05 

O.D1 

0.11 

0.01 

0.12 

0.10 

a.so

0.32 

0.27 

Loans to individuals ................................................. 1.11 0.33 0.46 1.20 1.56 1.01 0.62 1.49 1.05 0.77 1.48 

Loans Outstanding (in billions)

All real estate loans ................................................. $612.3 $30.0 $172.7 $149.9 $259.7 $182.6 $103.9 $29.7 $41.2 $208.2 

Construction, development and land ..................... 21.1 1.7 10.2 5.8 4.2 4.2 4.6 1.2 2.8 4.2 

1.0 

Commercial real estate ......................................... 50.3 18.2 15.1 14.6 21.3 4.3 2.1 13.4 

Multifamily residential real estate .......................... 61.5 11.7 17.1 31.7 13.7 1.4 7.2 1.4 34.3 

1-4 Family residential ............................................ 479.4 25.0 132.6 111.9 209.9 143.4 36.8 86.6 25.0 31.2 156.4 

12.0 

Commercial and industrial loans ............................. 12.0 0.6 3.8 3.2 6.5 1.1 1.4 0.7 0.6 1.8 

Loans to individuals ................................................. 39.8 2.0 10.4 15.4 13.1 3.6 6.0 6.2 

Memoranda: 

Other Real Estate Owned (in millions)*** 

All other real estate owned ...................................... $3,497 $120 $871 $1,323 $1,183 $1,585 $170 $182 $101 $242 $1,216 

Construction, development and land ..................... 863.2 32.5 218.0 518.2 94.5 532.0 63.3 23.8 12.3 74.1 157.7 

Commercial real estate ......................................... 931.3 44.7 279.7 388.6 218.3 514.1 48.4 72.4 64.0 25.9 206.5 

Multifamily residential real estate .......................... 645.2 6.2 141.8 269.0 228.2 194.6 6.3 23.0 11.4 85.2 324.8 

1-4 Family residential.. .......................................... 1,490.4 54.6 325.6 320.4 789.7 487.5 71.1 76.8 36.1 89.2 729.6 

Troubled Real Estate Asset Rates•••• 

(o/o of total RE assets) 

All real estate loans ................................................. 1.92 1.48 1.65 2.28 1.94 2.66 1.55 0.74 0.95 1.79 2.10 

3.98 

Construction, development and land ..................... 5.39 3.13 

Commercial real estate ......................................... 4.51 3.81 

9.90 3.98 14.21 2.28 1.26 1.56 3.17 5.75 

6.13 3.58 6.03 3.36 2.65 5.09 2.15 3.76 

1.29 

Multifamily residential real estate .......................... 2.69 2.23 3.04 

1-4 Family residential.. .......................................... 1.47 1.19 1.13 

2.15 4.03 2.31 1.41 1.82 3.96 2.33 

1.82 1.73 1.27 0.55 0.61 1.48 1.93 . .,. Excludes 1nst1tut1ons in Resolut10n Trust Corporation conservatorsh1p and one self-llquldatlng institution . 

**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. 

Insurance Fund Reserve Ratios 

Percent of Insured Deposits 

Fund Balance and Insured Deposits Target Ratio 1.15 1.22 129 1 25 .. .................. ....................... . . ($ Millons) 

BIFFund BIF�naurecl SAIF Fund SAJF-Jnsured 

Balance Depoalla Balance DeposllB 0.70 0.69 

12/89 13,210 1,873,837 0 882,920 

12/90 4,045 1,929,612 18 830,028 

12/91 (7,028) 1,957,722 101 776,351 no 0 12/92 (101) 1,945,623 279 729,458 

12/93 13,122 1,906,885 1,157 695,574 

12/94 21,848 1,895,182 1,937 693,432 ·0.36 

CJ SAIF 23,185 1,899,092 2,216 703,613 

9/95 1,918,933 3,084 709,259 12/89 12/90 12/91 12/92 12/93 12/94 3/95 6/95 9/95 

24,sn 

25,075 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 14 Third Quarter 1995 

• BIF 1,915,278 2,587 708,560 
ALL FDIC-INSURED INSTITUTIONS 

• Institutions Increase Reliance On Nondeposit Funding

• Fund Balances Rise As Insurance Losses Remain Low

• Merger Activity Spurs Additional Oakar Deposit Growth

Estimated FDIC-insured deposits increased 0.2 percent ($4 billion) between June 30 and September 30, 

although the rate of growth lagged behind growth in 

total deposits (up 0.6 percent) and total liabilities (up 

1.1 percent). These figures indicate a greater reliance 

on foreign-office and other uninsured deposits than on 

insured deposits, and a greater reliance on other borrowed funds than on deposits. On a year-to-year basis, 

insured deposits increased for both the Bank Insurance Fund (BIF), up 1.7 percent, and the Savings 

Association Fund (SAIF), up 3.1 percent. By comparison, BIF-insured deposits declined in each of the last 

three calendar years (1992-1994), while SAIF-insured 

deposits declined in each of the five calendar years 

since the fund's inception in 1989. 

Two insured institutions failed in the third quarter, both 

of which were BIF-member commercial banks, with 

combined assets of $234 million. Failures for the first 

three quarters of 1995 included six BIF-member 

banks, with total assets of $750 million, and two SAIFmember thrifts, with total assets of $456 million. Both 

of the SAIF-member failures were resolved by the 

Resolution Trust Corporation (RTC). No thrifts have 

failed since the SAIF assumed resolution responsibility 

from the RTC on July 1. 

With this relatively low level of failures for both funds 

and the expected continuation of this trend for the near 

future, the funds have grown. The reserve ratio of the 

BIF was 1.31 percent of insured deposits on September 30, compared to 1.29 percent on June 30, despite 

the refund of $1.5 billion in September to reflect a 

premium reduction retroactive to June 1. In November, 

the FDIC again lowered BIF assessment rates, to a 

range of O to 27 basis points of assessable deposits, 

effective at the beginning of 1996.1 The reserve ratio

of the SAIF climbed to 0.43 percent from 0.37 percent 

on June 30, due in part to the recovery of loss provisions previously set aside for institutions whose conditions have improved and which are no longer viewed 

as imminent failures. However, because the SAIF 

remains undercapitalized, the FDIC left SAIF assessment rates unchanged, at 23 to 31 basis points. 

"Oakar" deposits. A member of one insurance fund 

can acquire deposits insured by the other fund, but this 

FDIC Quarterly Banking Profile 

portion of the acquiring institution's deposits retains 

coverage under the other fund. Despite the disparity in 

assessment rates favoring BIF-assessable deposits, 

banks have continued acquiring thrifts and increasing 

their share of the SAIF assessment base. As of September 30, 781 BIF members held $209 billion in 

SAIF-assessable deposits, up $6 billion (2.9 percent) 

from June 30 and $41 billion (24.4 percent) from 

September 1994. With this increase in the third quarter, BIF members hold 28.5 percent of the SAIF assessment base, compared to 27.8 percent on June 30 

and 23.4 percent a year ago. On September 30, 64 

SAIF-member institutions held $10.6 billion in BIF-assessable deposits, or 0.4 percent of the total BIF 

assessment base. 

"Sasser" institutions. Since 1989, institutions have 

been permitted to switch charter type and primary 

federal supervisor without changing insurance fund 

membership. As of September 30, 317 SAIF-member 

institutions were subject to supervision by one of the 

three federal banking agencies. These institutions, 

most of which are state-chartered savings banks supervised by the FDIC, held SAIF-assessable deposits 

of $56.5 billion, or 7.7 percent of the SAIF assessment 

base. 

FICO bonds. The Financing Corporation (FICO) has 

a first claim on up to $793 million of SAIF assessment 

revenue each year through the year 2019 in order to 

pay interest on FICO bonds. However, SAIF assessments paid by BIF-member Oakars and SAIF-member 

Sassers are not available to the FICO. The aggregate 

share of the SAIF assessment base held by these 

institutions increased to 36.2 percent on September 

30, from 35.3 percent on June 30 and 30.6 percent in 

September 1994. Continued growth of the Oakar-Sasser portion of the assessment base could result in a 

FICO-available assessment base that is too small to 

generate the assessment revenue required by the 

FICO to meet its fixed interest obligations. Congress 

is considering alternatives for funding FICO revenue 

needs, including assessing BIF members. 

1

The best-rated institutions will have a risk-based assessment rate of

zero but will still be subject to the statutory minimum assessment of 

$1,000 per semiannual period. 

Third Quarter 1995 15 All FDIC-Insured Institutions 
9,973 

43.5 53.3 57.4 

475.4 

Estimated FDIC-Insured Deposits by Fund Membership and Type of Institution 

September 30, 1995* 

(dollar figures in mil/Ions) Number of Total Domestic Estimated Insured Deposits 

Institutions Assets Deposits" BIF SAIF Total 

Private-Sector Commercial and Savings Institutions 

FDIC-Insured Commercial Banks ......................................... 10,054 4,229,427 2,481,741 1,749,764 172,034 1,921,799 

BIF-member ...................................................................... 4,204,341 2,463,088 1,748,539 158,003 1,906,542 

SAIF-member ................................................................... 81 25,086 18,652 1,226 14,031 15,257 

FDIC-Insured Savings Institutions ........................................ 2,058 1,024,573 742,370 167,313 537,225 704,537 

OTS-Supervised Savings Institutions ............................... 1,459 774,973 543,936 25,992 489,873 515,865 

BIF-member ................................................................... 21 90,412 59,238 16,712 40,439 57,150 

SAi F-member' ............................................................... 1,438 684,561 484,697 9,281 449,434 458,715 

FDIC-Supervised State Savings Banks ............................ 599 249,600 198,434 141,320 47,352 188,672 

BIF-member ................................................................... 363 197,692 158,373 141,208 9,231 150,439 

SAIF-member ................................................................ 236 51,908 40,061 112 38,121 38,233 

Total Private-Sector Commercial and 

Savings Institutions ........................................................ 12,112 5,254,000 3,224,110 1,917,077 709,259 2,626,336 

BIF-member .......................................................................... 10,357 4,492,445 2,680,700 1,906,458 207,673 2,114,131 

SAIF-member ....................................................................... 1,755 761,555 543,410 10,619 501,586 512,205 

Other FDIC-Insured Institutions 

RTC Conservatorships''' ..................................................... 0 0 0 0 0 0 

U.S. Branches of Foreign Banks ......................................... 41 9,470 3,248 1,856 0 1,856 

Total FDIC-Insured Institutions ............................................ 12,153 5,263,470 3,227,358 1,918,933 709,259 2,628,192 

'Excludes one self-liquidating savings institution with less than $1 million in SAIF-insured deposits. 

"Excludes $449.6 billion in foreign office deposits, which are uninsured. 

'"The last RTC conservatorship was resolved prior to September 30. 

SAIF Domestic Deposits 

December 31, 1989- September 30, 1995 

$ Billions 

1,000 

RTC Conservatorships 

Sasser Institutions 

Oakar Deposits 

(BIF-members) 

328 

0 

($ Billions) 12/89 12/90 12/91 12/92 12/93 12/94 3/95 6/95 9/95 

Sasser Institutions 0.0 2.8 12.0 28.8 52.9 55.3 

Oakar Deposits (BIF-members) 2.1 34.0 69.9 80.6 139.9 181.9 196.3 203.3 209.2 

RTC Conservatorships 89.7 67.8 37.2 31.5 17.9 1.2 0.0 0.0 0.0 

All Other Institutions 858.5 773.1 700.6 622.8 527.8 485.7 484.5 480.2 

Total 950.3 877.7 819.7 763.7 729.1 721.7 734.2 738.8 742.0 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 16 Third Quarter 1995 
----- -- -- ----

1,426 

$94 $73 

50 

1995 1994 

7.5 

3.8 

7.2 

9.3 

954 

TABLE 1-C. Selected Indicators, All FDIC-Insured Institutions· 

(dollar figures in millions) 1_. _. _.

99 9 19_

9_. _. _93 1992 1991 1--- - 5*_' ___ 1_9_ 4

_. *_' _ _ _ 4 _ 19 _. ___ _. ___. _. _ c...:_c___

Number of institutions reporting .......... .......................... . 12,112 12,773 12,602 13,220 13,852 14,482 

Total assets .................................................................... . $5,254,000 $4,929,115 $5,019,105 $4,707,052 $4,535,878 $4,543,684 

Total deposits .................................................................. . 3,673,755 3,541,183 3,611,604 3,528,473 3,527,034 3,594,345 

Number of problem institutions ....................................... . 217 377 318 572 1,063 

Assets of problem institutions (in billions) ...................... . $37 $334 $592 $819 

Number of failed/assisted institutions .............. . 8 13 15 181 271 

Assets of failed/assisted institutions in billions) ............ .. $1.21 $1.29 $1.57 $9.67 $88 $142 

.. As of September 30. 

(dollar figures in millions) 

2nd Quarter 3rd Quarter 

TABLE 11-C. Aggregate Condition and Income Data, All FDIC-Insured Institutions* 

Preliminary 

3rd Quarter 

1995 

% Change 

94:3-95:3 

Number of institutions reporting .............................................. . 12,112 12,251 12,773 -5.2 

Total employees (full-time equivalent) .................................... . 1,732,996 1,732,434 1,754,478 -1.2 

CONDITION DATA 

Total assets ............................................................................ . $5,254,000 $5,188,067 $4,929,115 6.6 

t-- --- --

Loans secured by real estate ........................................... . 1,683,287 1,657,256 1,565,438 

1-4 Family residential.. ................................................. . 1,101,528 1,080,471 1,006,761 9.4 

Home equity loans ...................................................... . 97,653 96,807 92,084 6.1 

Multifamily residential property ..................................... . 96,781 96,043 94,290 2.6 

Commercial real estate ................................................ .. 344,573 343,056 331,981 

Construction, development and land ............................ . 89,230 86,975 84,677 5.4 

Other real estate loans ................................................. . 51,176 50,710 47,728 

Commercial & industrial loans .......................................... . 

Loans to individuals ......................................................... .. 

Credit cards & related plans ........................................... . 

Other loans & leases ........................................................ . 

Less: Unearned income & contra accounts ...................... . 

Total loans & leases ............................................................ . 

Less: Reserve for losses .................................................... . 

Net loans & leases .................................................................. . 

Securities ............................................................................. . 

Other real estate owned ....................................................... . 

Goodwill and other intangibles ............................................. . 

All other assets ..................................................................... . 

Total liabilities and capital. ...................................................... . 

Deposits ................................................................................ . 

Other borrowed funds ........................................................... . 

Subordinated debt. ............................................................... . 

All other liabilities .................................................................. . 

659,436 

558,307 

208,469 

326,565 

16,007 

3,211,589 

60,187 

3,151,402 

1,109,182 

10,502 

35,362 

947,552 

5,254,000 

3,673,755 

859,024 

46,267 

245,765 

651,766 

541,727 

200,300 

312,979 

15,912 

3,147,816 

60,402 

3,087,414 

1,095,262 

11,027 

33,277 

961,086 

5,188,067 

3,651,908 

823,108 

44,799 

250,233 

584,889 

499,460 

178,670 

280,960 

16,903 

2,913,844 

60,504 

2,853,340 

1,133,096 

16,985. 

28,339 

897,354 

4,929,115 

3,541,183 

736,547 

41,086 

217,591 

12.8 

11.8 

16.7 

16.2 

-5.3 

10.2 

-0.5 

10.5 

·2.1 

-38.2 

24.8 

5.6 

6.6 

3.7 

16.6 

12.6 

13.0 

Equity capital. ....................................................................... . 429,188 418,018 392,708 

Loans and leases 30-89 days past due ................................... . 39,693 36,571 34,344 15.6 

Noncurrent loans and leases .................................................. . 40,412 40,791 44,168 -8.5 

Restructured loans and leases ............................................... . 10,875 12,074 14,415 -24.6 

Direct and indirect investments in real estate ........................•. 923 1,096 -13.0 

Mortgage-backed securities ................................................... . 541,083 536,553 547,323 -1.1 

Earning assets ........................................................................ . 4,634,354 4,554,708 4,329,087 7.1 

Unused loan commitments ..................................................... . 2,135,249 2,065,615 1,743,668 22.5 

Including RTC conservatorships and /BA 's: 

Estimated BIF-insured deposits ........................................... . 1,918,933 1,915,275 1,887,061 1.7 

Domestic deposits (reflects Oakar adjustments) .............. . 2,485,391 2,476,914 2,426,130 2.4 

BIF balance (unaudited figures) ....................................... . 25,075 24,677 19,359 29.5 

BIF coverage ratio (%)*** ................................................. . 1.31 1.29 1.03 27.4 

Estimated SAIF-insured deposits ........................................ . 709,259 708,518 687,994 3.1 

Domestic deposits (reflects Oakar adjustments) .............. . 741,967 738,827 717,321 3.4 

SAIF balance (unaudited figures) ...................................... . 3,084 2,587 2,011 53.4 

SAIF coverage ratio (%1' ............................................... . 0.43 0.37 0.29 48.8 

Estimated FDIC-insured deposits, BIF and SAIF ................ . 2,628,192 2,623,793 2,575,055 2.1 

Preliminary Preliminary 

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

INCOME DATA Qtrs 1995 Qtrs 1994 %ChanQe 1995 1994 94:3-95:3 

Total interest income ............................................ . $278,937 $237,056 17.7 $96,349 $81,640 18.0 

Total interest expense ............................................ . 142,258 105,032 35.4 49,677 36,333 36.7 

Net interest income ............................................. . 136,679 132,024 3.5 46,672 45,308 3.0 

Provision for loan losses ...................................... . 10,311 9,959 3.5 3,740 3,035 23.2 

Total noninterest income ...................................... . 66,474 60,972 9.0 24,115 21,422 12.6 

Total noninterest expense ................................... .. 127,495 123,554 3.2 42,472 42,041 1.0 

Securities gains (losses) ...................................... . 791 630 25.7 316 (307) N/M 

Applicable income taxes ....................................... . 23,064 20,758 11.1 8,612 7,364 16.9 

Extraordinary gains, net... .................................... . (214) (462) NIM (241) (262) N/M 

Net income ......................................................... . 42,861 38,893 10.2 16,037 13,720 16.9 

'Excludes 1nst1tut1ons in RTC conservatorship, one self-liquidating savings 1nst1tution, insured branches of foreign banks (IBA's), unless indicated otherwise . 

.. 'Coverage ratios reflect the insurance fund balance as a percentage of estimated insured deposits. N/M-Not meaningful 

FDIC Quarterly Banking Profile 

Third Quarter 1995 17 All FDIC-Insured Institutions 
-5.0

5.4 

TABLE 1-D. Selected Indicators, BIF-Member Depository Institutions* 

(dol/arfigures in millions) 1995** 1994** 1994 1993 1992 1991 

Number of institutions reporting .................................... .. 10,357 10,905 10,758 11,291 11,813 12,305 

Total assets .................................................................... . $4,492,445 $4,164,968 $4,246,808 $3,949,695 $3,711,612 $3,660,497 

Total deposits ................................................................. . 3,130,345 2,984,361 3,061,457 2,951,980 2,873,169 2,881,811 

Number of problem institutions ....................................... . 167 315 264 472 856 1,089 

Assets of problem institutions (in billions) ....................... . $23 $48 $42 $269 $464 $610 

Number of failed/assisted institutions ............................. . 6 12 13 41 122 127 

Assets of failed/assisted institutions (in billions) ............ .. $0.76 $1.20 $1.43 $3.54 $44 $63 

**As of September 30. 

TABLE 11-D. Selected Aggregate Condition and Income Data, BIF-Member Depository Institutions* 

(dollar figures in millions) Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter % Change 

1995 1995 1994 94:3-95:3 

Number of institutions reporting .............................................. . 10,357 10,477 10,905 

Commercial banks ................................................................ . 

Savings institutions ............................................................... . 

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

CONDITION DATA 

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

Loans secured by real estate, total. ...................................... . 

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

Multifamily residential property ........................................... . 

Commercial real estate ....................................................... . 

Construction, development and land .................................. . 

Commercial & industrial loans .............................................. . 

Reserve for losses .............................................................. . 

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

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

BIF-insured deposits (estimated) ........................................ . 

SAIF-insured deposits (estimated) ..................................... . 

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

Other real estate owned ....................................................... . 

Equity capital. ....................................................................... . 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions: 

Well capitalized ..................................................................... . 

Adequately capitalized .......................................................... . 

Undercapitalized ................................................................... . 

Significantly undercapitalized ............................................... . 

Critically undercapitalized ..................................................... . 

Total assets: 

Well capitalized ..................................................................... . 

Adequately capitalized .......................................................... . 

Undercapitalized ................................................................... . 

Significantly undercapitalized .............................................. . 

Critically undercapitalized ..................................................... . 

Preliminary 

First Three 

INCOME DATA Qtrs 1995 

9,973 

384 

1,542,068 

$4,492,445 

1,211,291 

723,954 

54,445 

311,485 

70,336 

651,609 

55,209 

3,130,345 

2,114,131 

1,906,458 

207,673 

34,446 

8,049 

367,037 

10,190 

149 

12 

6 

0 

$4,416,076 

74,469 

1,206 

694 

0 

First Three 

Qtrs 1994 

10,091 10,517 

386 388 

1,539,534 1,543,569 

$4,426,525 $4,164,968 

1,188,509 1,109,170 

705,929 649,048 

53,568 49,839 

309,690 296,515 

68,705 66,131 

644,425 579,262 

55,346 54,888 

3,105,931 2,984,361 

2,106,136 2,043,578 

1,903,020 1,875,652 

203,116 167,927 

34,830 37,006 

8,456 13,560 

356,962 332,354 

10,309 10,718 

145 150 

15 23 

5 12 

3 2 

$4,308,850 $4,004,462 

115,482 155,174 

1,408 3,899 

351 1,373 

434 60 

Preliminary 

3rd Quarter 3rd Quarter 

%Change 1995 1994 

-5.2

-1.0

-0.1

7.9 

9.2 

11.5 

9.2 

5.1 

6.4 

12.5 

0.6 

4.9 

3.5 

1.6 

23.7 

-6.9 

-40.7 

10.4

-4.9

-0.7

-47.8

-50.0

-100.0

10.3 

-52.0

-69.1

-49.4

-100.0

%Change 

94:3-95:3 

Net interest income .............................................. . $121,220 $115,055 $41,422 $39,606 4.6 

Provision for loan losses ...................................... . 

Net income ........................................... • ................ . 

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

Number of institutions reporting net losses .......... . 

*Excludes insured branches of foreign banks. 

9,202 8,540 7.8 3,375 2,683 25.8 

38,541 35,690 8.0 14,439 12,451 16.0 

8,783 8,744 0.5 3,414 2,688 27.0 

329 409 -19.6 350 461 -24.1

FDIC Quarterly Banking Profile 

BIF-Member Depository Institutions 18 Third Quarter 1995 
59 144 

-3.3

96 

TABLE 1-E. Selected Indicators, SAIF-Member Depository Institutions* 

(dollar figures in millions) 1

--- -19_9_5_** ___ 1 _99_ 4_*_* _ 1_9_9 _4 ___1993 ___ _ 1992 1991 

Number of institutions reporting ..................................... . 1,755 1,868 1,844 1,929 2,039 2,177 

Total assets .................................................................... . $761,555 $764,147 $772,297 $757,357 $824,266 $883,187 

Total deposits ................................................................. . 543,410 556,822 550,147 576,493 653,865 712,533 

Number of problem institutions ....................................... . 50 62 54 100 207 337 

Assets of problem institutions (in billions) ....................... . $13 $47 $31 $65 $128 $209 

Number of failed/assisted institutions ............................. . 2 1 2 9 

Assets of failed/assisted institutions (in billions ............ .. $0.46 $0.09 $0.14 $6 $44 $79 

**As of September 30. 

TABLE 11-E. Selected Aggregate Condition and Income Data, SAIF-Member Depository Institutions* 

(dollar figures in millions) Preliminary 

3rd Quarter 2nd Quarter 3rd Quarter % Change 

1995 1995 1994 94:3-95:3 

Number of institutions reporting .............................................. . 1,755 1,774 1,868 -6.0

Commercial banks ................................................................ . 81 77 75 8.0 

Savings institutions ............................................................... . 1,674 1,697 1,793 -6.6 

Total employees (full-time equivalent) ................................... .. 190,928 192,900 210,909 -9.5

CONDITION DATA 

Total assets ............................................................................ . $761,555 $761,542 $764,147 -0.3

Loans secured by real estate, total ....................................... . 471,997 468,747 456,268 3.5

1-4 Family residential. ........................................................ . 377,574 374,543 357,713 5.6

Multifamily residential property ........................................... . 42,336 42,475 44,452 -4.8

Commercial real estate ...................................................... .. 33,088 33,367 35,466 -6.7

Construction, development and land .................................. . 18,894 18,271 18,546 1.9

Commercial & industrial loans .............................................. . 7,827 7,342 5,626 39.1 

Reserve for losses ............................................................. .. 4,978 5,056 5,616 -11.4

Total deposits ....................................................................... . 543,410 545,977 556,822 -2.4

Estimated insured deposits .................................................. . 512,205 515,809 527,684 -2.9

BIF-insured deposits (estimated) ........................................ . 10,619 10,407 9,243 14.9

S AIF-insured deposits (estimated) ..................................... . 501,586 505,402 518,441 

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

Other real estate owned ....................................................... . 

Equity capital. ....................................................................... . 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions: 

Well capitalized ..................................................................... . 

Adequately capitalized ......................................................... . 

Undercapitalized ................................................................... . 

Significantly undercapitalized ............................................... . 

Critically undercapitalized .................................................... .. 

Total assets: 

Well capitalized ..................................................................... . 

Adequately capitalized .......................................................... . 

Undercapitalized ................................................................... . 

Significantly undercapitalized .............................................. . 

Critically undercapitalized ..................................................... . 

Preliminary 

First Three 

INCOME DATA Qtrs 1995 

Net interest income............................................... $15,459 

Provision for loan losses....................................... 1,108 

Net income............................................................ 4,320 

Net charge-offs...................................................... 1,086 

5,966 

2,454 

62,151 

1,694 

55 

5 

1 

0 

738,608 

21,724 

1,189 

33 

0 

First Three 

Qtrs 1994 

$16,969 

1,419 

3,203 

1,813 

5,961 7,162 

2,572 3,425 

61,056 60,354 

1,704 1,771 

64 85 

3 6 

2 5 

1 

$727,097 $680,145 

33,053 79,221 

756 1,408 

383 3,329 

253 44 

Preliminary 

3rd Quarter 3rd Quarter 

%Change 1995 1994 

-8.9 $5,250 $5,702 

-21.9 366 353 

34.9 1,598 1,269 

-40.1 373 559 

-16.7 

-28.4

3.0

-4.3

-35.3 

-16.7 

-80.0

-100.0

8.6 

-72.6 

-15.5 

-99.0 

-100.0 

%Change 

94:3-95:3 

-7.9

3.7

25.9

-33.2

Number of institutions reporting net losses........... 100 130 -23.1 130 -26.2 

*Excludes institutions in Resolution Trust Corporation conservatorship and one self-liquidating institution.

FDIC Quarterly Banking Profile 

Third Quarter 1995 19 SAIF-Member Depository Institutions 
-

-

Number of FDIC- Insured "Problem" Institutions 

1990 - 1995 

Number of Institutions 

2,000 Commercial Banks 

Savings lnsfflulior,s 

1,063 

1,000 926 

665 572 

500 377 318 254 217 

0 

12/90 12/91 12/92 3/93 6/93 9/93 12/93 3/94 6/94 9/94 12/94 3/95 6/95 9/95 

Savings Institutions 480 410 276 255 209 169 146 118 95 84 71 71 64 59 

Commercial Banks 1,012 1,016 787 671 580 496 426 383 338 293 247 215 190 158 

Assets of FDIC - Insured 11Problem11 Institutions 

1990 - 1995 

$ Billions

1,000 .----- - --- - --- ----- .

-C

-

o__me

_-

rc

- _B__k ---- ;-;_-;.- m ial_a n

-

s

�

$819 Savi ngs Institutions 

800 

$592 

600 $ 544 

$454 

400 

200 $142 $113

0 

12/90 12/91 12/92 3/93 6/93 9/93 12/93 3/94 6/94 9/94 12/94 3/95 6/95 9/95 

Savings Institutions 298 291 184 167 128 103 92 89 71 59 39 39 33 17 

Commercial Banks � � � � � � � � � � 33 � � � 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 20 Third Quarter 1995 
. 

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 1-B through V-B.) 

This section covers savings institutions insured by either BIF 

or SAi F 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 that have been placed in Resolution Trust Corporation conservatorship are also excluded 

from these tables while in conservatorship. 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 1-C through 11-E.) 

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, SAi F 

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. 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) Ca// 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. 

FDIC Quarterly Banking Profile 

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 Ca// Reports. 

The detailed schedules of the Thrift Financial Report reflect 

the consolidation of the parent thrift with all finance subsidiaries. All other subsidiaries are reported as investments on 

an equity basis or a cost basis. Some accounting differences exist, such as asset sales with recourse, for which 

the data necessary to reconcile these differences are not 

reported. 

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 

"pooling-of-interest" mergers, the assets of the acquired 

institution(s) are included in average assets since the yearto-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. Tables 111 and IV do not provide growth 

rates for the "Asset Size Distribution" since many institutions migrate between size groups. 

Asset Migrations 

All data are collected and presented based on the location 

of each reporting institution's main office. When a main office 

is relocated to another state, adjustments to prior-period 

data may be made to more accurately reflect geographic 

growth rates. In other situations, no adjustments are possible. For example, reported data may include assets and 

liabilities located outside of the reporting institution's home 

state. Also, institutions may change their charters, resulting 

in an inter-industry migration, e.g. savings institutions can 

convert to commercial banks. These situations can affect 

state and regional totals. 

RECENT ACCOUNTING CHANGES 

FASB Statement 115, "Accounting for Certain Investments 

in Debt and Equity Securities." Requires that securities 

that are not held in trading accounts be measured at 

either amortized cost or fair (market) value, depending 

on their classification category. For additional details, 

see "Notes to Users," First Quarter, 1994, Quarterly 

Banking Profile. 

FASB Interpretation 39, "Offsetting of Amounts Related to 

Certain Contracts." Covers fair value amounts recognized 

as assets and liabilities on the balance sheet for off-balancesheet derivative contracts under which the amounts to be 

received or paid or items to be exchanged depend on future 

events or other factors (e.g., future and forward contracts, 

interest-rate swaps, exchange-rate swaps, and other conditional and exchange contracts). For additional details, see 

"Notes to Users," First Quarter, 1994, Quarterly Banking 

Profile. 

Third Quarter 1995 21 Notes to Users 
;:,:4 

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 /94, FASB Interpretation 39 limited the netting of related 

trading assets and liabilities, which had the effect of increasing the amount of trading account assets reported. 

All other liabilities - bank's liability on acceptances, limited-life preferred stock, and other liabilities. Effective 

3/31/94, includes revaluation losses on assets held in trading accounts. 

BIF-insured deposits (estimated) - the amount of deposits in accounts of less than $100,000 insured by the BIF. For 

SAIF-member "Oakar" institutions, it represents the adjusted attributable amount acquired from BIF members. 

Capital category distribution - each institution's capital 

category is calculated or estimated from its financial report 

and does not reflect supervisory upgrades or downgrades: 

Total Tier1 

(Percent) Risk-Based Risk-Based Tier 1 Tangible 

Capital• Capital• Leverage Equity 

Well-capitalized ;:,:10 and ;:,:5 and ;:,:5 

Adequately 

Earning assets - all loans and other investments that earn 

interest or dividend income. 

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 - or the RTC - 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 

mortgage 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. 

capitalized ;:,:s and ;:,:4 and Loans to individuals - includes outstanding credit card 

Under- balances and other secured and unsecured consumer capitalized ;:,:5 and ;:,:3 and ;:,:3 

loans. 

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

with remaining maturities or repricing intervals of over five 

Significantly 

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

Critically 

undercapitalized ::;2 

• As a percentage of risk-weighted assets.

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 

mortgage 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. 

years. 

Mortgage-backed securities - certificates of participation 

in pools of residential mortgages and collateralized mortgage obligations issued or guaranteed by governmentsponsored or private enterprises. Effective 3/31/94, the full 

implementation of FASB 115 meant that a portion of banks' 

mortgage-backed securities portfolio is now reported based 

upon fair (market) values; previously, all mortgage-backed 

securities not held in trading accounts were reported at 

either amortized cost or lower of cost or market. 

Net charge-offs-total loans and leases charged off (removed 

from balance sheet because of uncollectibility), less amounts 

recovered on loans and leases previously charged off. 

Net interest margin - the difference between interest and 

dividends earned on interest-bearing assets and interest 

paid to depositors and other creditors, expressed as a 

percentage of average earning assets. No adjustments are 

made for interest income that is tax exempt. 

Net operating income - income excluding discretionary 

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

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

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

in nonaccrual status. Noncurrent debt securities and other 

assets were not included prior to March 1991. 

FDIC Quarterly Banking Profile 

Notes to Users 22 Third Quarter 1995 
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 and obligations under capitalized 

leases. Effective 3/31/94, includes newly-reported item 

"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 

FDIC Quarterly Banking Profile 

either a "4" or "5". For all BIF-member institutions, and for 

all SAIF-member institutions for which the FDIC is the 

primary federal regulator, FDIC composite ratings are used. 

For all SAIF-member institutions whose primary federal 

regulator is the OTS, the OTS composite rating is used. 

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 

off-balance-sheet accounts. 

SAIF-insured deposits {estimated) - the amount of deposits in accounts of less than $100,000 insured by the SAi F. 

For BIF-member "Oakar" institutions, it represents the adjusted attributable amount acquired from SAIF members. 

Securities - excludes securities held in trading accounts. 

Effective 3/31/94, the full implementation of FASS 115 meant 

that a portion of banks' securities portfolios is now reported 

based upon fair (market) values; previously, all securities not 

held in trading accounts were reported at either amortized 

cost or lower of cost or market. 

Securities gains {losses) - Realized gains (losses) on heldto-maturity and available-for-sale securities, before adjustments for income taxes. Thrift Financial Reporters (TFR) also 

include gains (losses) on the sales of assets held for sale. 

In all publications prior to September 1995, gains (losses) 

on sales of available-for-sale securities and assets held for 

sale were excluded for savings institutions that file a TFR. 

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. 

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. Beginning 3/31/94, new reporting detail permits 

the exclusion of other borrowed money with original maturity 

of more than one year; previously, all other borrowed money 

was included. Also beginning 3/31/94, the newly-reported 

item "Trading liabilities", less revaluation losses on assets 

held in trading accounts, is included. 

Yield on earning assets - total interest, dividend and fee 

income earned on loans and investments as a percentage 

of average earning assets. 

Third Quarter 1995 23 Notes to Users