Donald E. Powell, Chairman 

Second Quarter 2001 

Division of Research 

& Statistics 

Don Inscoe 

Associate Director 

Statistics Branch 

(202) 898-3940 

Kevin Brown 

(202) 898-6817 

Tim Critchfield 

(202) 898-8557 

Jim McFadyen 

(202) 898-7027 

Ross Waldrop 

(202) 898-3951 

COMMERCIAL BANK PERFORMANCE — SECOND QUARTER 2001 

n Commercial Banks Earn $19.2 Billion In Second Quarter 

n Gains On Securities Sales Buoy Profits 

n Margin Woes Continue To Erode Community Banks’ Profitability 

n Problems Worsen In Large Banks’ Commercial Loans 

n Charge-Offs Increase In Credit-Card Portfolios 

Insured commercial banks earned $19.2 billion in 

the second quarter of 2001, a 31-percent ($4.5 billion) improvement over the second quarter of 

2000. A year ago, sizable restructuring and creditrelated charges at a few large banks depressed 

industry earnings. The absence of comparable 

charges in the second quarter accounted for 

almost all of the improvement in net income. 

Lower interest rates allowed banks to realize gains 

on sales of securities, which also boosted net 

income. But slower growth and narrower net interest margins meant lower earnings for many community banks. More than one out of every ten 

banks with assets less than $100 million (11.6 percent) were unprofitable in the quarter. Fewer than 

half of all commercial banks—49.4 percent— 

reported higher quarterly earnings than a year ago. 

QUARTERLY NET INCOME, 

1997–2001 $ Billions 

Securities and Other Gains/Losses, Net 

Net Operating Income 19.4 19.5 19.3 19.9 19.2 

18.0 17.7 17.7 16.9 15.916.1 14.6 14.514.6 14.7 15.3 15.014.8 

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

1997 1998 1999 2000 2001 

The industry’s return on assets (ROA) was 1.21 

percent, down from 1.27 percent in the first quarter, but up from 0.99 percent a year ago. A majority of banks reported lower ROAs compared to a 

year ago. Through the first six months of 2001, 

industry earnings totaled a record $39.0 billion, 

$4.8-billion (14.1 percent) more than in the first half 

of 2000. The industry’s ROA was 1.24 percent, 

compared to 1.16 percent for the first six months of 

last year. 

Noninterest income was $3.6 billion (10.0 percent) 

higher than in the second quarter of 2000, despite 

lower revenue from trading and trust activities. 

Trading revenues were $209 million (6.9 percent) 

lower, while fiduciary (trust) income fell by $364 

million (6.8 percent). One area of noninterest 

income improvement was service charges on 

deposit accounts, which rose by $922 million (15.8 

percent).1 Declining interest rates boosted the 

market values of banks’ fixed-rate securities during 

the quarter. Securities sales yielded gains totaling 

$861 million in the second quarter; a year ago, 

sales produced a $1.0-billion net loss for the industry. Loan-loss provisions continued to grow in the 

second quarter. Banks set aside $8.8 billion for 

future loan losses during the quarter, an increase 

of $1.6 billion (22.3 percent) from the second quarter of 2000. Quarterly loss provisions absorbed 

9.6 percent of the industry’s net operating revenues (noninterest income plus net interest 

1 Changes in the reporting of banks’ noninterest income that 

became effective in 2001 make year-to-year comparisons of 

other noninterest income components problematic. 

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

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

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

the FDIC’s Institution Directory (I.D.) System on this Web site. 
income), up from 8.3 percent a year earlier.

Noninterest expenses were only $76 million (0.1 percent) higher than a year ago, when restructuring

charges at a few large banks inflated the industry total. 

Net interest income was $2.2 billion (4.3 percent) higher in the second quarter than a year ago. Interestearning assets were $297 billion (5.7 percent) higher 

at mid-year than they were 12 months earlier, but lower 

net interest margins limited the growth in net interest 

income. The industry’s net interest margin remained 9 

basis points lower compared to a year earlier, although 

it rose 7 basis points from its level in the first quarter, 

ending a stretch of six consecutive quarterly declines. 

Banks with less than $100 million in assets were the 

only asset-size group to report a margin decline during 

the second quarter; their margin fell by 3 basis points 

to 4.26 percent, 36 basis points lower than a year ago. 

QUARTERLY NET INTEREST MARGINS, 

1997–2001 

Net Interest Margins (%) 

5.0 

4.5 

4.0 

3.5 

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

Assets < $100 Million 4.26 

Assets > $100 Million 3.88 

1997 1998 1999 2000 2001 

Loan charge-offs and noncurrent loans (loans 90 days 

or more past due or in nonaccrual status) continued to 

increase during the second quarter. Banks chargedoff $7.9 billion in bad loans during the quarter, an 

increase of $2.6 billion (50.0 percent) from the level of 

the second quarter of 2000. As has been the case in 

recent quarters, the greatest deterioration in credit 

quality occurred in commercial and industrial (C&I) 

loan portfolios at larger banks. Although C&I loans 

represent only 26.6 percent of commercial banks’ 

loans, they have generated more than half of the 

increase in all noncurrent loans in every quarter since 

the first quarter of 1998, and more than half of the 

increase in charged-off loans in every quarter since the 

fourth quarter of 1999. C&I loan charge-offs totaled 

$3.1 billion, up $1.4 billion (76.7 percent) from a year 

ago. They accounted for 39.3 percent of all loan 

charge-offs in the second quarter, and 51.1 percent of 

the increase in total charge-offs from a year earlier. 

Credit-card loans also registered increased chargeoffs. Banks charged-off $2.8 billion in credit-card loans 

during the quarter, an increase of $592 million (26.5 

percent) compared to the second quarter of 2000. Net 

charge-offs on leases were up by $108 million (94.7 

percent), and the quarterly charge-off rate of 0.53 percent was the highest since the end of 1992. 

Residential mortgage loan charge-offs rose in the second quarter to $292 million, a $106-million (57.0-percent) increase from a year earlier. 

CREDIT QUALITY OF COMMERCIAL BANKS’ 

COMMERCIAL & INDUSTRIAL LOANS, 1996–2001 

$ Billions 

30 

25 

20 

15 

10 

5 

0 

1996 1997 1998 1999 2000 2001 

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

Quarterly Net Charge-offs 

Noncurrent Loans 

7.4 

23.9 

20.8 

3.1 

Despite the rising level of charge-off activity, noncurrent loans remaining in banks’ loan portfolios continued to increase as well. Total noncurrent loans 

increased by $2.7 billion (5.8 percent) during the quarter. During the past 12 months, noncurrent loans have 

increased by $12.1 billion (33.1 percent). At mid-year, 

1.26 percent of commercial banks’ loans were noncurrent, the highest level in six years. C&I loans accounted for two-thirds ($1.8 billion) of the increase in 

noncurrent loans during the quarter. More than 2 percent of C&I loans were noncurrent at the end of the 

quarter, the first time since the end of 1993 that the 

noncurrent rate has been this high. Only one out of 

CREDIT CARD LOSS RATES AND PERSONAL 

BANKRUPTCY FILINGS, 1984–2001 

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

7 500 

6 

5 

400 

4 300 

3 200 

2 

1 

100 

0 

1985 1987 1989 1991 1993 1995 1997 1999 

0 

2001 

Credit Card Charge-Off Rates 

Personal Bankruptcy Filings 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 Second Quarter 2001 
COMMERCIAL AND INDUSTRIAL LOANS TO 

SMALL BUSINESSES, 1997–2001 

(As of June 30) $ Billions 

Small Businesses (Original 

loan amounts < $1 Million) 

Medium/Large Businesses 629.4 609.4 (Original loan amounts 

> $1 Million) 547.4 

477.5 

412.3 

232.5 243.3 

200.7 212.0 190.0 

1997 1998 1999 2000 2001 

every three commercial banks had an increase in its 

noncurrent C&I loan rate during the quarter, but the 

banks that experienced deterioration held threefourths of the banking industry’s C&I loans. 

Noncurrent rates increased in several other loan categories during the quarter, although not to the extent 

seen in C&I loans. The percentage of real estate loans 

secured by farmland that were noncurrent rose from 

1.44 percent to 1.66 percent during the quarter. The 

noncurrent rate for leases rose from 0.79 percent to 

0.93 percent, while the rate for loans secured by commercial real estate properties increased from 0.79 percent to 0.87 percent, and the percentage of agricultural 

production loans that were noncurrent rose from 1.44 

percent to 1.52 percent. 

Commercial banks’ asset growth slowed for the third 

consecutive quarter. Industry assets grew by $44.8 

billion during the quarter, after increasing by $71.7 billion in the first quarter and $138.0 billion in the second 

quarter of last year. Loans increased by only $27.8 billion (0.7 percent). Growth in mortgage-backed securities (up $23.7 billion, or 4.8 percent) accounted for 

more than half of the total increase in commercial bank 

assets in the second quarter. Real estate construction 

and development loans continued to exhibit strong 

growth, rising by $10.4 billion (5.9 percent). Banks’ 

C&I loans declined by $19.9 billion (1.9 percent), the 

largest quarterly decline ever reported by the industry. 

The trend in C&I lending over the past 12 months suggests that most of this decline has been in loans to 

larger commercial borrowers. Data reported annually 

each June 30 show that C&I loans with original 

amounts of less than $1 million have increased over 

the past year by $10.8 billion (4.6 percent), while larger C&I loans to U.S. borrowers have declined by $20.0 

billion (3.2 percent). 

Deposit growth kept pace with overall asset growth 

during the quarter. Growth in savings deposits 

remained strong, despite a marked slowdown in the 

growth of brokered money-market deposit accounts 

(MMDAs). Demand deposits increased by $14.5 billion, while retail (< $100,000) time deposits fell by 

$18.6 billion. Federal Home Loan Bank (FHLB) 

advances increased by $4.5 billion. 

Reserves increased by $1.0 billion, as loan-loss provisions exceeded net charge-offs by $911 million. The 

growth in reserves, combined with modest loan 

growth, produced a slight increase in the industry’s 

reserve ratio, from 1.69 percent to 1.70 percent. 

However, the relatively larger increase in noncurrent 

loans meant that the industry’s “coverage ratio” fell for 

the sixth consecutive quarter. At the end of June, commercial banks held $1.35 in reserves for every $1.00 of 

noncurrent loans, the lowest level since the first quarter of 1994. 

Equity capital increased by $10.8 billion during the 

quarter, lifting the industry’s equity-to-assets ratio from 

8.65 percent to 8.76 percent. However, $3.5 billion of 

the increase in equity consisted of goodwill; tangible 

capital rose by only $6.7 billion. The industry’s core 

capital “leverage” ratio increased from 7.68 percent to 

7.73 percent. Most of the improvement in capital levels occurred at larger banks. 

The number of insured commercial banks reporting 

financial results declined by 60 institutions during the 

quarter, from 8,238 to 8,178. There were 31 new 

banks reporting, while 89 banks were absorbed by 

mergers during the quarter, and one insured commercial bank failed. At midyear, the FDIC’s “Problem List” 

contained 80 commercial banks with combined assets 

of $16.5 billion, representing an increase of two banks 

and a decline of $1 billion in assets during the quarter. 

FDIC Quarterly Banking Profile 

Second Quarter 2001 3 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

2001* 2000* 2000 1999 1998 1997 1996 

Return on assets (%)............................................................................................ 1.24 1.16 1.19 1.31 1.19 1.23 1.19 

Return on equity (%)............................................................................ 14.31 13.87 14.04 15.31 13.93 14.68 14.45 

Core capital (leverage) ratio (%)......................................................................... 7.73 7.73 7.70 7.79 7.54 7.56 7.64 

Noncurrent assets plus 

other real estate owned to assets (%)......................................................... 0.82 0.67 0.74 0.63 0.65 0.66 0.75 

Net charge-offs to loans (%)...................................................................... 0.78 0.57 0.67 0.61 0.67 0.64 0.58 

Asset growth rate (%)................................................................................... 6.30 9.42 8.87 5.38 8.53 9.54 6.16 

Net interest margin (%)..................................................................................... 3.86 3.99 3.95 4.07 4.07 4.21 4.27 

Net operating income growth (%).......................................................................... 6.93 2.92 1.89 20.41 2.24 12.46 6.43 

Number of institutions reporting.............................................................. 8,178 8,477 8,315 8,579 8,773 9,142 9,527 

Percentage of unprofitable institutions (%)................................................................................... 7.10 6.69 7.29 7.50 6.11 4.85 4.28 

Number of problem institutions................................................................................... 80 73 76 66 69 71 82 

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

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

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

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

(dollar figures in millions) 

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

2nd Quarter 1st Quarter 2nd Quarter %Change 

2001 2001 2000 00:2-01:2 

8,178 8,238 8,477 -3.5 

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

CONDITION DATA 

1,690,393 1,682,974 1,661,933 1.7 

 Total assets................................................................................................... $6,360,162 $6,315,321 $5,983,472 6.3

 Loans secured by real estate............................................................................................. 1,737,715 1,702,166 1,627,250 6.8

 Commercial & industrial loans.......................................................................................... 1,025,888 1,045,772 1,033,497 -0.7

 Loans to individuals............................................................................... 610,629 597,506 569,279 7.3

 Farm loans................................................................................ 48,927 46,228 47,014 4.1

 Other loans & leases.............................................................................. 438,664 442,384 430,860 1.8

 Less: Unearned income.................................................................................. 2,764 2,790 3,205 -13.7

 Total loans & leases................................................................................................ 3,859,060 3,831,266 3,704,696 4.2

 Less: Reserve for losses.................................................................................. 65,749 64,726 61,957 6.1

 Net loans and leases............................................................................. 3,793,311 3,766,540 3,642,739 4.1

 Securities....................................................................................................................................... 1,056,247 1,049,048 1,046,678 0.9

 Other real estate owned........................................................................................... 3,203 3,066 2,781 15.2

 Goodwill and other intangibles............................................................................... 107,623 103,572 102,295 5.2

 All other assets................................................................................. 1,399,780 1,393,096 1,188,979 17.7 

Total liabilities and capital.................................................................... 6,360,162 6,315,321 5,983,472 6.3

 Noninterest-bearing deposits............................................................... 753,219 722,021 723,425 4.1

 Interest-bearing deposits....................................................................... 3,491,517 3,464,452 3,250,758 7.4

 Other borrowed funds..................................................................... 1,135,904 1,144,616 1,128,649 0.6

 Subordinated debt...................................................................... 89,580 90,525 82,216 9.0

 All other liabilities......................................................................... 332,571 347,130 295,045 12.7

 Equity capital.................................................................................... 557,373 546,578 503,378 10.7 

Loans and leases 30-89 days past due......................................................... 46,917 47,281 39,413 19.0 

Noncurrent loans and leases................................................................... 48,809 46,113 36,675 33.1 

Restructured loans and leases........................................................................ 1,006 1,185 1,114 -9.7 

Direct and indirect investments in real estate.............................................................. 267 277 320 -16.6 

1-4 Family residential mortgages...................................................................... 943,563 926,958 903,959 4.4 

Mortgage-backed securities.................................................................................. 518,338 494,604 452,705 14.5 

Earning assets................................................................................... 5,478,115 5,446,905 5,181,080 5.7 

Long-term assets (5+ years).............................................................................................. 1,241,914 1,160,805 1,209,597 2.7 

Volatile liabilities................................................................................... 2,155,384 2,152,985 2,145,980 0.4 

Foreign office deposits.................................................................... 679,732 671,096 685,411 -0.8 

FHLB Advances (Source: FHFB, Call Reports).................................................................... 184,098 179,625 178,636 3.1 

Unused loan commitments................................................................. 4,671,772 4,551,259 4,174,970 11.9 

Derivatives............................................................................................................... 48,212,925 44,332,066 38,918,854 23.9 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

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

2001 2000 %Change 2001 2000 00:2-01:2 

$213,521 $206,288 3.5 $104,329 $105,826 -1.4 

108,698 105,185 3.3 51,118 54,822 -6.8 

104,823 101,103 3.7 53,211 51,004 4.3 

16,775 13,046 28.6 8,837 7,227 22.3 

79,231 74,097 6.9 39,184 35,622 10.0 

110,032 107,207 2.6 55,250 55,174 0.1 

2,030 -1,772 N/M 861 -1,044 N/M 

19,946 19,037 4.8 9,988 8,541 16.9 

-352 13 N/M -17 -4 N/M 

38,980 34,150 14.1 19,164 14,636 30.9 

14,880 10,329 44.1 7,926 5,284 50.0 

25,892 22,774 13.7 12,518 11,267 11.1 

37,931 35,473 6.9 18,612 15,498 20.1 

N/M - Not meaningful 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 Second Quarter 2001 
TABLE III-A. First Half 2001, FDIC-Insured Commercial Banks 

FIRST HALF Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

8,178 4,685 3,101 313 79 654 1,412 1,744 2,118 1,356 894 

Total assets (in billions).......................................................................... $6,360.2 $228.0 $789.8 $899.6 $4,442.8 $2,233.9 $1,612.4 $1,144.2 $406.9 $264.2 $698.6 

Total deposits (in billions)........................................................................ 4,244.7 192.5 644.4 624.2 2,783.7 1,403.1 1,093.9 756.3 291.0 216.3 484.1 

Net income (in millions).................................................................... 38,980 1,091 4,814 5,925 27,150 13,187 9,733 5,949 2,733 1,534 5,844 

% of unprofitable institutions................................................................... 7.1 10.7 2.4 2.6 0.0 10.6 11.6 6.0 4.1 5.0 10.0 

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

Performance ratios (annualized, %) 

51.1 45.3 58.3 65.5 62.0 59.3 49.1 53.6 46.9 48.2 58.3 

Yield on earning assets.................................................. 7.86 8.21 8.25 8.27 7.67 7.60 7.77 7.73 8.33 8.04 8.72 

Cost of funding earning assets.............................................................. 4.00 3.95 3.92 3.93 4.03 4.16 3.89 4.11 3.93 3.65 3.73 

Net interest margin............................................................... 3.86 4.26 4.33 4.35 3.64 3.44 3.88 3.62 4.40 4.39 4.98 

Noninterest income to earning assets.......................................................... 2.92 1.15 1.71 2.61 3.31 3.75 2.47 1.94 2.87 1.57 3.59 

Noninterest expense to earning assets................................................................. 4.05 3.76 3.83 4.08 4.10 4.45 3.74 3.31 4.36 3.88 4.68 

Loan and lease loss provision to assets.................................................................... 0.53 0.25 0.30 0.63 0.57 0.51 0.42 0.52 0.72 0.28 0.88 

Net operating income to assets........................................................... 1.20 0.96 1.21 1.27 1.20 1.16 1.19 1.02 1.28 1.14 1.65 

Return on assets.................................................................. 1.24 0.98 1.24 1.32 1.23 1.19 1.21 1.05 1.32 1.18 1.73 

Return on equity............................................................... 14.31 8.75 12.75 14.29 15.02 14.75 13.59 13.22 13.58 12.28 17.33 

Net charge-offs to loans and leases....................................................... 0.78 0.24 0.33 0.84 0.88 0.92 0.59 0.60 0.94 0.36 1.21 

Loan and lease loss provision to net charge-offs.................................................................... 112.74 176.20 142.09 116.78 108.89 108.28 107.63 127.57 110.90 132.48 113.55 

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

Condition Ratios (%) 

57.80 68.87 62.56 56.19 56.88 60.00 56.68 57.45 58.06 63.28 52.69 

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

Loss allowance to: 

86.13 91.79 91.45 89.52 84.21 83.18 86.40 88.89 89.60 89.87 87.01 

Loans and leases........................................................ 1.701.39 1.42 1.88 1.74 1.86 1.52 1.58 1.60 1.41 2.13 

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

Noncurrent assets plus 

134.71 128.77 157.43 178.22 124.83 122.77 124.40 130.71 165.15 138.15 194.25 

other real estate owned to assets........................................................ 0.82 0.79 0.69 0.73 0.87 0.81 0.88 0.86 0.75 0.70 0.76 

Equity capital ratio............................................................. 8.76 11.14 9.80 9.50 8.31 8.16 9.13 8.10 9.84 9.69 9.99 

Core capital (leverage) ratio............................................................ 7.73 10.87 9.35 8.45 7.14 7.33 7.72 7.56 8.34 8.60 8.66 

Tier 1 risk-based capital ratio...................................................................................... 9.68 16.04 13.03 11.30 8.59 9.64 9.26 8.93 10.75 12.63 10.50 

Total risk-based capital ratio................................................................ 12.41 17.14 14.19 13.17 11.80 12.54 12.05 11.87 12.89 14.08 13.06 

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

Structural Changes (YTD) 

89.37 72.42 79.01 90.30 92.72 79.51 96.05 100.18 97.89 71.06 88.99 

New Charters........................................................................................ 64 61 3 0 0 10 14 14 9 3 14 

Banks absorbed by mergers...................................................................... 193 82 92 15 4 20 32 64 31 26 20 

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

PRIOR FIRST HALVES

 (The way it was...) 

2 2 0 0 0 1 0 1 0 0 0 

Number of institutions................................2000 8,477 5,037 3,059 299 82 670 1,435 1,834 2,180 1,429 929

 ...............................................1998 8,982 5,645 2,963 310 64 704 1,474 1,961 2,306 1,570 967

 ...............................................1996 9,690 6,470 2,816 331 73 765 1,592 2,137 2,454 1,722 1,020 

Total assets (in billions).............................2000 $5,983.5 $237.2 $766.7 $863.5 $4,116.0 $2,042.8 $1,605.3 $1,012.3 $417.4 $317.1 $588.6

 ................................................1998 5,181.4 259.0 734.0 927.7 3,260.7 1,907.1 1,102.8 845.2 338.9 302.6 684.8

 ................................................1996 4,397.0 290.2 681.0 1,001.3 2,424.5 1,667.1 767.7 697.2 284.0 325.9 655.1 

Return on assets (%)................................2000 1.16 1.19 1.30 1.29 1.11 1.28 0.91 1.06 1.45 1.08 1.48

 ................................................1998 1.25 1.24 1.37 1.56 1.14 1.16 1.21 1.31 1.48 1.17 1.43

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

Net charge-offs to loans & leases (%) 

1.18 1.22 1.29 1.30 1.10 1.06 1.24 1.19 1.44 1.23 1.30 

 ................................................2000 0.57 0.24 0.32 0.60 0.64 0.75 0.41 0.33 0.81 0.35 0.90

 ................................................1998 0.62 0.21 0.33 1.02 0.60 0.86 0.40 0.39 0.72 0.39 0.78

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

Noncurrent assets plus 

0.56 0.19 0.37 0.82 0.53 0.67 0.42 0.40 0.63 0.29 0.71 

OREO to assets (%)..............................2000 0.67 0.69 0.59 0.58 0.70 0.73 0.64 0.62 0.58 0.65 0.68

 ................................................1998 0.65 0.77 0.65 0.73 0.62 0.74 0.57 0.56 0.64 0.59 0.69

 ................................................1996 0.82 0.84 0.80 0.84 0.81 0.95 0.65 0.63 0.70 0.64 1.00 

Equity capital ratio (%)..............................2000 8.41 10.94 9.30 8.62 8.06 8.01 8.26 7.97 9.27 8.75 10.22

 ................................................1998 8.60 10.99 9.71 9.76 7.84 7.49 9.42 8.58 9.20 9.16 9.88

 ................................................1996 8.30 10.42 9.41 9.02 7.43 7.45 8.45 8.50 8.89 8.82 9.56 

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

Rhode Island, Vermont, U.S. Virgin Islands

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

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

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

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

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

FDIC Quarterly Banking Profile 

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

SECOND QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

8,178 4,685 3,101 313 79 654 1,412 1,744 2,118 1,356 894 

Total assets (in billions)............................................................................. $6,360.2 $228.0 $789.8 $899.6 $4,442.8 $2,233.9 $1,612.4 $1,144.2 $406.9 $264.2 $698.6 

Total deposits (in billions).............................................................................. 4,244.7 192.5 644.4 624.2 2,783.7 1,403.1 1,093.9 756.3 291.0 216.3 484.1 

Net income (in millions)......................................................................... 19,164 537 2,423 2,869 13,334 6,597 5,084 2,901 1,423 775 2,383 

% of unprofitable institutions........................................................................ 8.0 11.6 3.1 3.5 1.3 10.4 13.2 6.1 5.6 6.0 10.4 

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

Performance Ratios (annualized, %) 

49.4 43.5 56.6 64.2 63.3 59.3 46.5 52.0 46.8 45.7 53.6 

Yield on earning assets............................................................................. 7.64 8.12 8.12 8.07 7.43 7.30 7.67 7.52 8.16 7.86 8.44 

Cost of funding earning assets...................................................................... 3.74 3.86 3.78 3.70 3.74 3.84 3.70 3.86 3.67 3.46 3.49 

Net interest margin................................................................................. 3.90 4.26 4.34 4.37 3.69 3.45 3.97 3.65 4.49 4.40 4.95 

Noninterest income to earning assets................................................................ 2.87 1.17 1.72 2.66 3.23 3.63 2.55 2.03 2.96 1.58 3.11 

Noninterest expense to earning assets........................................................... 4.05 3.77 3.85 4.15 4.08 4.34 3.80 3.41 4.35 3.87 4.68 

Credit loss provision to assets........................................................... 0.56 0.28 0.33 0.71 0.58 0.53 0.44 0.58 0.75 0.29 0.88 

Net operating income to assets.......................................................... 1.17 0.94 1.20 1.23 1.17 1.14 1.25 1.00 1.36 1.16 1.29 

Return on assets................................................................................ 1.21 0.95 1.24 1.28 1.20 1.18 1.27 1.02 1.39 1.18 1.39 

Return on equity.................................................................................... 13.88 8.51 12.66 13.60 14.58 14.60 13.99 12.71 14.06 12.21 13.86 

Net charge-offs to loans and leases................................................................. 0.82 0.27 0.37 0.95 0.91 0.97 0.62 0.63 1.02 0.39 1.31 

Credit loss provision to net charge-offs........................................................... 111.50 174.02 135.72 116.62 107.47 107.82 106.85 134.55 106.25 126.08 105.49 

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

Structural Changes (QTR) 

57.67 68.90 62.60 55.93 56.73 59.38 55.95 57.14 56.46 62.87 55.98 

New charters................................................................................. 31 29 2 0 0 5 7 7 3 2 7 

Banks absorbed by mergers............................................................................. 89 41 43 4 1 9 14 31 15 12 8 

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

PRIOR SECOND QUARTERS

 (The way it was...) 

1 1 0 0 0 0 0 1 0 0 0 

Return on assets (%)................................2000 0.99 1.20 1.32 1.12 0.89 1.17 0.47 0.92 1.52 1.04 1.51

 .................................................1998 1.25 1.23 1.37 1.41 1.18 1.15 1.24 1.30 1.48 1.12 1.45

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

Net charge-offs to loans & leases (%) 

1.27 1.24 1.31 1.37 1.23 1.25 1.30 1.20 1.51 1.21 1.31 

 .................................................2000 0.58 0.30 0.33 0.62 0.64 0.74 0.43 0.32 0.80 0.36 0.95

 .................................................1998 0.62 0.24 0.35 1.04 0.59 0.83 0.43 0.41 0.72 0.42 0.79

 .................................................1996 0.57 0.23 0.40 0.88 0.51 0.68 0.42 0.41 0.62 0.34 0.74 

FDIC Quarterly Banking Prof

FDIC-Insured Commercial Banks 6 Second Quarter 200
TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

June 30, 2001 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.......................................................... 1.20 1.46 1.09 0.94 1.30 1.11 1.29 1.36 1.01 1.20 0.98 

Construction and development.................................................................... 1.19 1.39 1.25 1.51 1.02 0.97 0.81 1.29 1.48 1.35 1.81 

Commercial real estate........................................................................... 0.78 1.23 0.86 0.72 0.72 0.69 0.67 1.05 0.93 1.04 0.52 

Multifamily residential real estate................................................................... 0.54 0.58 0.63 0.75 0.43 0.28 0.49 0.77 0.45 1.35 0.50 

Home equity loans................................................................ 0.82 0.99 0.79 0.88 0.81 0.60 0.71 1.10 0.81 0.64 0.84 

Other 1-4 Family residential...................................................................... 1.53 1.79 1.35 0.96 1.70 1.26 1.88 1.69 1.01 1.31 1.17 

Commercial and industrial loans................................................................ 0.93 1.89 1.51 1.47 0.74 0.53 0.60 1.46 1.77 1.35 1.32 

Loans to individuals......................................................... 2.19 2.52 2.29 2.22 2.15 2.45 2.02 2.06 2.21 1.81 1.96 

Credit card loans.............................................................................. 2.61 2.69 5.24 2.71 2.48 2.86 2.66 2.29 2.52 1.56 2.14 

Other loans to individuals....................................................................... 1.94 2.52 1.88 1.92 1.92 2.07 1.80 2.04 1.99 1.82 1.64 

All other loans and leases (including farm)............................................................... 0.65 0.95 0.89 0.93 0.60 0.55 0.40 0.87 1.19 0.94 0.71 

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

Percent of Loans Noncurrent* 

0.98 0.77 0.22 0.82 1.02 0.36 1.05 1.37 1.48 0.87 1.46 

All real estate loans...................................................................... 0.91 0.93 0.76 0.79 1.00 1.01 0.94 1.02 0.68 0.84 0.68 

Construction and development................................................................. 0.90 0.89 0.93 0.91 0.88 1.05 0.86 0.84 1.12 0.86 0.88 

Commercial real estate.......................................................................... 0.87 1.03 0.80 0.83 0.92 0.83 0.82 1.12 0.73 0.86 0.76 

Multifamily residential real estate................................................................ 0.42 0.58 0.45 0.45 0.39 0.24 0.49 0.52 0.42 0.34 0.46 

Home equity loans............................................................................... 0.42 0.32 0.37 0.57 0.41 0.31 0.33 0.68 0.33 0.29 0.33 

Other 1-4 Family residential........................................................ 0.96 0.81 0.69 0.77 1.09 0.99 1.13 1.09 0.51 0.78 0.51 

Commercial and industrial loans............................................................ 2.03 1.66 1.35 1.63 2.19 2.10 2.34 1.89 1.30 1.62 1.88 

Loans to individuals.............................................................................. 1.39 0.93 0.92 1.21 1.51 2.11 0.85 0.71 1.17 0.64 1.29 

Credit card loans.............................................................................. 2.11 2.06 3.32 2.20 2.05 2.57 1.71 1.36 1.58 0.99 1.77 

Other loans to individuals......................................................................... 0.96 0.90 0.58 0.61 1.13 1.70 0.56 0.64 0.86 0.63 0.45 

All other loans and leases (including farm)................................................................ 0.75 1.12 0.99 0.89 0.71 0.72 0.43 0.88 1.17 1.20 0.92 

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

Percent of Loans Charged-off (net, YTD) 

0.98 0.38 0.29 0.74 1.02 0.47 1.68 0.52 0.17 0.31 0.10 

All real estate loans................................................................................ 0.12 0.05 0.05 0.12 0.15 0.09 0.12 0.19 0.14 0.04 0.07 

Construction and development................................................................... 0.08 0.06 0.04 0.13 0.08 0.06 0.10 0.10 0.12 0.04 0.03 

Commercial real estate........................................................................ 0.09 0.06 0.05 0.07 0.13 0.06 0.09 0.17 0.11 0.03 0.07 

Multifamily residential real estate................................................. 0.02 0.06 0.03 0.02 0.02 0.04 0.02 0.04 0.07 0.02 -0.05 

Home equity loans.......................................................................... 0.24 0.07 0.11 0.38 0.23 0.20 0.29 0.26 0.25 0.26 0.08 

Other 1-4 Family residential....................................................................... 0.12 0.05 0.06 0.12 0.15 0.07 0.12 0.22 0.15 0.05 0.09 

Commercial and industrial loans.......................................................................... 1.05 0.48 0.58 0.96 1.14 0.83 1.09 1.02 1.56 0.76 1.53 

Loans to individuals............................................................................... 2.48 0.75 1.46 3.00 2.57 2.97 1.81 1.38 2.72 0.87 3.64 

Credit card loans........................................................................ 4.69 2.84 6.31 5.81 4.37 4.82 4.02 4.66 4.64 2.35 4.89 

Other loans to individuals......................................................................... 1.12 0.68 0.73 1.16 1.23 1.25 1.09 1.02 1.03 0.82 1.30 

All other loans and leases (including farm).................................................................... 0.36 0.20 0.31 0.44 0.36 0.21 0.22 0.51 0.38 0.34 1.16 

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

Loans Outstanding (in billions) 

0.19 0.96 0.57 0.19 0.17 0.34 0.13 0.20 0.14 0.29 0.06 

All real estate loans..................................................................................... $1,737.7 $81.4 $335.1 $312.6 $1,008.7 $363.3 $559.6 $372.4 $136.6 $86.2 $219.5 

Construction and development.................................................................... 184.6 7.7 39.9 41.3 95.9 18.2 67.3 39.8 14.7 13.4 31.2 

Commercial real estate........................................................................... 479.0 23.0 125.9 107.7 222.4 80.8 145.2 105.5 37.7 31.6 78.2 

Multifamily residential real estate........................................................................ 60.6 1.8 11.3 12.6 34.8 15.2 15.3 14.4 4.1 2.4 9.2 

Home equity loans.............................................................................. 135.2 2.1 14.2 18.5 100.3 27.2 45.9 38.5 7.8 1.4 14.4 

Other 1-4 Family residential........................................................................... 808.4 36.4 129.9 127.8 514.2 189.6 275.8 165.4 61.6 33.5 82.4 

Commercial and industrial loans...................................................................... 1,025.9 24.7 94.0 126.1 781.0 344.5 264.1 213.8 64.1 37.1 102.4 

Loans to individuals.................................................................... 610.6 18.3 60.3 101.2 430.9 232.2 136.1 87.6 47.9 22.7 84.1 

Credit card loans.......................................................... 226.3 0.5 7.3 38.1 180.3 109.8 34.1 7.9 20.4 0.6 53.5 

Other loans to individuals..................................................................... 384.3 17.8 53.0 63.0 250.5 122.4 102.1 79.7 27.5 22.0 30.7 

All other loans and leases (including farm)....................................................... 487.6 17.1 27.7 35.3 407.5 198.0 107.7 96.3 40.9 10.1 34.5 

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

Memo: Other Real Estate Owned (in millions) 

47.3 0.3 1.4 3.6 42.0 11.6 22.1 4.9 2.3 0.5 6.0 

All other real estate owned........................................................................... $3,202.6 $270.5 $778.9 $450.2 $1,703.0 $711.3 $1,145.0 $474.2 $256.9 $251.9 $363.2 

Construction and development...................................................... 288.5 29.5 142.3 55.1 61.7 33.0 115.8 41.0 36.1 29.4 33.1 

Commercial real estate........................................................................ 1,452.9 120.6 333.8 209.4 789.1 327.2 565.4 158.1 98.1 118.4 185.7 

Multifamily residential real estate.............................................................. 66.2 4.6 22.9 10.0 28.8 9.5 15.5 12.8 4.2 3.2 21.0 

1-4 Family residential.................................................................. 1,149.4 89.0 246.0 170.1 644.3 182.1 437.2 254.7 82.3 80.1 113.0 

Farmland.................................................................................. 85.1 26.9 33.7 4.6 19.9 1.2 11.2 7.6 36.1 20.9 8.2 

Other real estate owned in foreign offices............................................................ 160.5 0.0 0.2 1.1 159.2 158.3 0.0 0.0 0.0 0.0 2.2 

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

FDIC Quarterly Banking Profile 

Second Quarter 2001 7 FDIC-Insured Commercial Banks 
SAVINGS INSTITUTION PERFORMANCE—SECOND QUARTER, 2001 

n Earnings Of $3.4 Billion Set New Quarterly Record 

n Higher Margins At Larger Thrifts Help Lift Industry Earnings 

n Deposits Grow By $13.5 Billion In The Quarter 

n Noncurrent Home Mortgages Rise 

FDIC-insured savings institutions reported record 

quarterly earnings of $3.4 billion for the second 

quarter, beating the previous record of $3.0 billion 

in the third quarter of 1998. Earnings improved by 

$456 million over first-quarter earnings and were 

$608 million (22 percent) higher than a year ago. 

The average return on assets (ROA) for the 

second quarter was 1.06 percent, 11 basis points 

higher than the 0.95 percent in both the first 

quarter and a year ago. Declining short-term 

interest rates led to favorable conditions for net 

interest income, which was $565 million (7 

percent) higher than in the first quarter and over $1 

billion (13 percent) higher than a year ago. 

Conditions were also favorable for sales of fixedrate assets, such as securities and mortgages. 

Gains on these sales amounted to over $1 billion 

this quarter, an increase of $242 million (30 

percent) over the first quarter and an $886-million 

(560-percent) improvement over the gains from a 

year ago. Noninterest income also improved by 

$307 million (10 percent) over the first quarter and 

was up $359 million (12 percent) from a year ago. 

Industry earnings were strong enough to absorb 

QUARTERLY NET INCOME, 1997–2001 

$ Billions 

the fifth consecutive quarterly increase in noninterest expenses, which increased by $382 million 

(5 percent) compared with the first quarter and by 

$1.1 billion (18 percent) compared with the second 

quarter of last year. Fewer than half (46 percent) 

of savings institutions reported earnings gains over 

year-ago levels, and almost two out of three 

institutions with assets of less than $100 million 

reported lower earnings. 

With the decline in short-term interest rates, net 

interest margins improved at large thrifts. The 

industry’s net interest margin jumped 12 basis 

points during the second quarter, to 3.15 percent. 

The cost of funding earning assets declined 40 

basis points in the quarter, while the yield on 

earning assets fell 28 basis points. Smaller thrifts, 

those with less than $100 million in assets, 

reported a decline in margins; their margins 

decreased 10 basis points to 3.21 percent. These 

thrifts reported a 15-basis-point decline in the cost 

of funding earning assets, while their yield on 

earning assets fell 25 basis points. All other size 

groups reported increases in net interest margins. 

Margin improvement was greatest at large 

institutions, with assets of over $5 billion, which 

QUARTERLY NET INTEREST MARGINS, 

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

2.5 

3.0 

3.5 

4.0 

Net Interest Margin (%) 

Assets < $1 Billion 

Assets > $1 Billion 

3.24 

3.12 

1997–2001 

2.4 2.4 

2.0 

2.3 

2.6 

2.8 

3.0 

2.0 

2.7 

2.9 2.8 2.7 

2.9 

2.7 

2.5 2.6 

2.9 

3.4 

Securities and Other Gains/Losses, Net 

Net Operating Income 

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

1997 1998 1999 2000 2001 1997 1998 1999 2000 2001 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 Second Quarter 2001 
reported a 17 basis point increase to 3.10 percent. 

The gap in net interest margins between small 

thrifts and large thrifts was 11 basis points this 

quarter, down from 38 basis points last quarter and 

74 basis points a year ago. Small thrifts have 

historically enjoyed a net interest margin 

advantage of about 60 basis points; in the middle 

of 1989 this advantage reached a peak of 125 

basis points. The second quarter’s gap was the 

smallest ever reported. 

The industry earned $6.2 billion in the first half of 

2001, for an average ROA of 1.01 percent. For the 

first half of 2000 the industry reported $5.6 billion in 

earnings for an ROA of 0.99 percent. The 

improvement resulted from higher gains on sales 

of assets and wider net interest margins. Gains on 

sales of assets, at $1.8 billion, were 5.6 times the 

amount reported in the first half of 2000. With a 

favorable interest-rate environment producing 

higher net interest margins, net interest income 

was 10 percent higher in 2001, up by $1.7 billion. 

The earnings increase was moderated by a 50-

percent increase in provisions for loan losses, to 

$1.4 billion from $930 million. 

The average ROA for small thrifts with assets of 

less than $100 million rose to 0.67 percent in the 

first half from 0.61 percent last year. Contributions 

to earnings from noninterest income rose for this 

group by almost a full percentage point, to 2.60 

percent of earning assets, from 1.61 percent last 

year. A few specialty thrifts with high levels of 

noninterest income were responsible for this 

improvement. Without these specialty thrifts, the 

average first half ROA for the remaining small 

thrifts declined to 0.40 percent from 0.49 percent 

last year. The decline in net interest margins has 

significantly impacted the earnings of small 

savings institutions. 

Credit quality deteriorated slightly in the second 

quarter. The average annualized net charge-off 

rate was 0.25 percent in the second quarter, up 

from 0.18 percent last year. Net charge-offs on 

construction and land loans were 0.15 percent of 

this loan category, up from 0.05 percent a year 

ago. While the amount of net charge-offs in the 

second quarter was over 50 percent higher than a 

year ago, they are still low by the industry’s 

historical standards. 

FDIC Quarterly Banking Profile 

Noncurrent loans increased by $393 million during 

the second quarter, while reserves for loan losses 

improved by only $159 million. As a result, the 

industry’s coverage ratio declined for the fourth 

consecutive quarter in a row. The coverage ratio 

fell to $1.15 in reserves for each dollar of 

noncurrent loans, down from $1.19 last quarter. 

The noncurrent rate on total loans rose 3 basis 

points to 0.77 percent. The noncurrent rate for 

construction and land loans rose 8 basis points to 

1.28 percent, and for home mortgages it rose by 5 

basis points to 0.71 percent. While the home 

mortgages noncurrent rate registered a smaller 

increase, these loans account for 69 percent of all 

loans at savings institutions. This increase was 

primarily responsible for the increase in the overall 

noncurrent loan rate. 

COVERAGE RATIO* AND RESERVE LEVELS, 

1997–2001 

$ Billions Coverage Ratio (%) 

30 

Coverage Ratio (%) 

Loan-Loss Reserves ($) 

Noncurrent Loans ($) 

150 

20 100 

10 50 

0 0 

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

1997 1998 1999 2000 2001 

* Loan-loss reserves to noncurrent loans. 

Industry assets rose by $19.4 billion in the second 

quarter. Home mortgages increased by $8.3 billion 

(1 percent). Goodwill and intangible assets, which 

includes mortgage-servicing assets, increased 

$3.8 billion (20 percent). One institution1 

accounted for 91 percent of the increase in 

intangible assets. Commercial & industrial loans 

increased by $2.3 billion (7 percent), but their 

share of industry assets remained at about 3 

percent. 

Deposits grew for the seventh consecutive quarter, 

increasing by $13.5 billion during the second 

1 Washington Mutual Bank FA of Stockton, California reported a 

$3.4 billion increase in mortgage servicing assets, attributable to 

the purchase of mortgage servicing operations. 

Second Quarter 2001 9 FDIC-Insured Savings Institutions 
quarter. Other borrowed funds showed a $2.6 

billion increase, but Federal Home Loan Bank 

advances did not contribute to the increase. FHLB 

advances declined by $4.5 billion during the 

quarter as thrifts increased their reliance on other 

borrowed funds. Equity capital improved by $2.1 

billion to 8.51 percent of assets, from 8.47 percent 

at the beginning of the quarter. Core capital rose 

by a comparable amount, from 7.72 percent to 

7.76 percent of average assets. 

At mid-year, 1,569 institutions filed a quarterly 

financial report, a decline of 15 from the previous 

quarter. A dozen mergers with thrift institutions 

accounted for most of the decline in the number of 

thrifts. Commercial banks absorbed a half-dozen 

institutions. One thrift institution converted its 

charter to a commercial banking charter during the 

quarter. Additions to the industry include three 

thrifts that began operations during the second 

quarter and a commercial bank that converted to a 

thrift charter. No thrifts failed in the second 

quarter.2 Organizational changes from mutual to 

stock ownership occurred at 4 institutions with 

$679 million in assets. At the beginning of the 

quarter there were 17 thrifts, with assets of $6.1 

billion, considered “problem” institutions. At the 

end of the quarter there were 22 “problem” thrifts 

with $7.2 billion in assets. 

2 Superior Bank FSB, Hinsdale, Illinois failed early in the third quarter on July 27, 2001. 

CAPITAL RATIOS, 1995–2001 

Ratio (%) 

16 

12 

8 

4 

Core Capital (Leverage) 

Equity to Assets 

Tier 1 Risk-Based Capital 

Total Risk-Based Capital 

123 4 12 34 123 4 12 3 4 12 34 12 3 4 12 

1995 1996 1997 1998 1999 2000 2001 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Second Quarter 2001 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

2001* 2000* 2000 1999 1998 1997 1996 

Return on assets (%)............................................................................................ 1.01 0.99 0.92 1.00 1.01 0.93 0.70 

Return on equity (%)............................................................................ 11.90 12.01 11.15 11.73 11.35 10.84 8.41 

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

Noncurrent assets plus 

other real estate owned to assets (%)......................................................... 0.60 0.54 0.56 0.58 0.72 0.95 1.09 

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

Asset growth rate (%)................................................................................... 8.12 4.70 5.99 5.52 6.06 -0.28 0.32 

Net interest margin..................................................................................... 3.10 3.02 2.96 3.10 3.10 3.23 3.22 

Net operating income growth (%).......................................................................... -7.94 12.44 3.08 16.62 7.71 19.98 -13.92 

Number of institutions reporting.............................................................. 1,569 1,624 1,588 1,642 1,690 1,780 1,926 

Percentage of unprofitable institutions (%)................................................................................... 10.07 8.00 8.50 8.28 5.27 4.10 12.05 

Number of problem institutions................................................................................... 22 16 18 13 15 12 35 

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

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

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

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

(dollar figures in millions) 

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

2nd Quarter 1st Quarter 2nd Quarter %Change 

2001 2001 2000 00:2-01:2 

1,569 1,584 1,624 -3.4 

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

CONDITION DATA 

263,831 250,548 242,682 8.7 

 Total assets................................................................................................... $1,274,664 $1,255,276 $1,178,917 8.1

 Loans secured by real estate............................................................................................. 751,659 740,498 701,305 7.2 

1-4 Family Residential............................................................................... 593,601 585,270 558,268 6.3 

Multifamily residential property....................................................................... 58,257 57,927 54,936 6.0 

Commercial real estate................................................................. 63,051 61,423 56,670 11.3 

Construction, development, and land........................................................................................ 36,750 35,877 31,431 16.9

 Commercial & industrial loans.......................................................................................... 37,666 35,337 31,124 21.0

 Loans to individuals............................................................................... 65,031 65,611 61,637 5.5

 Other loans & leases.............................................................................. 6,591 6,402 4,864 35.5

 Less: Unearned income & contra accounts.................................................................................. 177 179 206 -14.3

 Total loans & leases................................................................................................ 860,770 847,669 798,725 7.8

 Less: Reserve for losses.................................................................................. 7,626 7,467 7,003 8.9

 Net loans & leases............................................................................. 853,144 840,201 791,722 7.8

 Securities....................................................................................................................................... 279,256 279,513 278,739 0.2

 Other real estate owned........................................................................................... 1,031 998 1,110 -7.1

 Goodwill and other intangibles............................................................................... 22,936 19,155 15,781 45.3

 All other assets................................................................................. 118,296 115,409 91,565 29.2 

Total liabilities and capital.................................................................... 1,274,664 1,255,276 1,178,917 8.1

 Deposits................................................................................................. 775,696 762,217 715,726 8.4

 Other borrowed funds..................................................................... 364,972 362,381 348,524 4.7

 Subordinated debt...................................................................... 3,896 3,166 2,834 37.5

 All other liabilities......................................................................... 21,651 21,188 15,675 38.1

 Equity capital.................................................................................... 108,449 106,323 96,158 12.8 

Loans and leases 30-89 days past due......................................................... 8,272 8,351 6,310 31.1 

Noncurrent loans and leases................................................................... 6,657 6,264 5,221 27.5 

Restructured loans and leases........................................................................ 1,519 1,388 1,559 -2.6 

Direct and indirect investments in real estate.............................................................. 614 625 677 -9.4 

Mortgage-backed securities.................................................................................. 207,929 211,451 210,751 -1.3 

Earning assets................................................................................... 1,170,065 1,157,758 1,090,268 7.3 

FHLB Advances (Source: TFR, FHFB, Call Reports).................................................................... 254,116 258,604 250,028 1.6 

Unused loan commitments................................................................. 288,560 275,299 208,775 38.2 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

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

2001 2000 %Change 2001 2000 00:2-01:2 

$44,391 $40,520 9.6 $22,116 $20,774 6.5 

26,706 24,519 8.9 12,977 12,714 2.1 

17,685 16,002 10.5 9,140 8,060 13.4 

1,396 930 50.1 715 513 39.5 

6,189 5,498 12.6 3,251 2,893 12.4 

14,514 12,359 17.4 7,462 6,327 17.9 

1,847 327 464.2 1,045 158 559.7 

3,515 2,897 21.3 1,890 1,528 23.7 

-47 8 N/M -15 2 N/M 

6,250 5,649 10.6 3,354 2,746 22.1 

1,050 693 51.6 542 355 52.8 

2,906 3,175 -8.5 1,752 1,706 2.7 

4,994 5,425 -7.9 2,593 2,645 -2.0 

**For TFR filers, includes only loan and lease loss provisions. N/M - Not Meaningful 

FDIC Quarterly Banking Profile 

Second Quarter 2001 11 FDIC-Insured Commercial Banks 
TABLE III-B. First Half 2001, FDIC-Insured Savings Institutions 

FIRST HALF Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,569 603 822 102 42 617 208 401 123 109 111 

Total assets (in billions).......................................................................... $1,274.7 $30.6 $254.1 $197.6 $792.3 $421.7 $91.0 $189.6 $42.0 $69.3 $461.1 

Total deposits (in billions)........................................................................ 775.7 24.2 192.6 135.6 423.3 282.6 63.3 130.7 26.8 40.9 231.4 

Net income (in millions).................................................................... 6,250 99 879 758 4,513 2,042 240 660 165 422 2,721 

% of unprofitable institutions................................................................... 10.1 18.2 4.6 7.8 4.8 7.8 14.4 12.5 12.2 7.3 6.3 

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

Performance ratios (annualized, %) 

46.1 37.0 48.1 69.6 83.3 42.8 44.7 44.9 51.2 51.4 61.3 

Yield on earning assets.................................................. 7.77 7.61 7.60 7.78 7.83 7.50 7.88 8.12 7.62 8.03 7.83 

Cost of funding earning assets.............................................................. 4.67 4.35 4.37 4.63 4.80 4.22 4.99 4.97 4.87 4.72 4.88 

Net interest margin............................................................... 3.10 3.26 3.23 3.15 3.03 3.28 2.89 3.15 2.75 3.32 2.95 

Noninterest income to earning assets.......................................................... 1.08 2.60 0.79 0.94 1.16 0.98 1.66 1.25 0.91 1.24 0.98 

Noninterest expense to earning assets................................................................. 2.54 4.80 2.87 2.65 2.31 2.60 3.34 3.32 2.40 2.75 1.99 

Loan and lease loss provision to assets.................................................................... 0.23 0.13 0.12 0.20 0.27 0.14 0.54 0.52 0.17 0.31 0.11 

Net operating income to assets........................................................... 0.81 0.54 0.63 0.73 0.89 0.90 0.37 0.16 0.66 1.13 1.04 

Return on assets.................................................................. 1.01 0.67 0.71 0.79 1.17 1.00 0.54 0.71 0.80 1.23 1.22 

Return on equity............................................................... 11.90 5.09 6.71 8.92 15.57 10.09 6.37 8.31 8.61 14.76 17.21 

Net charge-offs to loans and leases....................................................... 0.25 0.11 0.11 0.24 0.31 0.17 0.38 0.54 0.18 0.34 0.15 

Loan and lease loss provision to net charge-offs.................................................................... 132.92 171.24 170.17 121.13 130.44 129.67 200.81 128.79 129.45 137.55 106.61 

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

Condition Ratios (%) 

58.87 81.39 70.64 63.24 52.80 58.28 72.65 73.53 63.98 59.50 48.92 

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

Loss allowance to: 

91.79 93.85 93.47 92.20 91.08 1.00 93.29 90.78 92.84 93.16 91.40 

Loans and leases........................................................ 0.890.73 0.85 1.02 0.87 0.97 0.91 0.94 0.67 0.95 0.80 

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

Noncurrent assets plus 

114.55 82.78 124.03 103.35 116.91 129.96 130.03 104.63 94.86 67.95 118.70 

other real estate owned to assets........................................................ 0.60 0.69 0.55 0.83 0.56 0.54 0.61 0.77 0.72 1.03 0.52 

Noncurrent RE loans to RE loans............................................ 0.74 0.84 0.66 0.98 0.70 0.72 0.61 0.83 0.68 1.62 0.64 

Equity capital ratio............................................................. 8.51 12.99 10.55 8.77 7.61 9.80 8.67 8.54 9.19 8.48 7.22 

Core capital (leverage) ratio............................................................ 7.76 12.63 10.05 8.17 6.74 8.77 8.32 7.95 8.51 8.35 6.51 

Tier 1 risk-based capital ratio...................................................................................... 12.47 22.85 16.74 12.81 10.71 13.99 13.02 12.37 14.69 12.78 10.73 

Total risk-based capital ratio................................................................ 13.80 23.90 17.81 13.87 12.21 15.34 14.47 13.66 15.52 13.69 12.17 

Gross real estate assets to gross assets................................................ 74.95 68.33 70.79 74.80 76.58 71.26 69.67 72.42 76.28 61.96 82.25 

Gross 1-4 family mortgages to gross assets............................................ 46.29 48.17 44.82 38.34 48.67 41.20 43.63 51.20 48.86 28.11 51.94 

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

Structural Changes (YTD) 

109.98 84.09 89.56 98.03 124.59 93.77 99.70 106.49 111.26 110.51 134.32 

New Charters........................................................................................ 9 8 1 0 0 2 1 3 0 1 2 

Thrifts absorbed by mergers...................................................................... 29 8 18 2 1 12 2 7 3 1 4 

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

PRIOR FIRST HALVES

 (The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Number of institutions...............................2000 1,624 644 834 111 35 636 218 415 127 114 114

 ...............................................1998 1,730 727 849 119 35 673 238 450 128 119 122

 ...............................................1996 1,980 880 942 121 37 741 297 508 150 130 154 

Total assets (in billions).............................2000 $1,178.9 $31.9 $245.9 $225.0 $676.2 $395.2 $78.9 $181.0 $43.8 $80.9 $399.2

 ................................................1998 1,045.0 37.9 248.1 231.0 528.1 348.0 65.9 171.3 33.8 64.1 361.9

 ................................................1996 1,023.0 45.7 276.3 246.4 454.7 355.2 69.3 171.4 51.8 78.3 297.1 

Return on assets (%)................................2000 0.99 0.61 0.82 0.98 1.07 0.97 0.69 0.99 0.84 1.00 1.08

 ................................................1998 1.05 0.77 0.99 0.98 1.13 1.01 0.83 0.97 0.93 1.24 1.16

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

Net charge-offs to loans & leases (%) 

1.01 0.73 0.90 0.96 1.12 0.98 0.88 0.99 0.92 2.49 0.72 

 ................................................2000 0.18 0.06 0.08 0.37 0.16 0.11 0.24 0.29 0.14 0.24 0.17

 ................................................1998 0.20 0.09 0.10 0.31 0.22 0.17 0.39 0.20 0.17 0.42 0.17

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

Noncurrent assets plus 

0.32 0.10 0.18 0.29 0.43 0.29 0.34 0.12 0.15 0.33 0.46 

OREO to assets (%)*.....................2000 0.54 0.64 0.49 0.86 0.44 0.56 0.55 0.64 0.53 0.78 0.42

 ................................................1998 0.81 0.79 0.70 1.12 0.73 0.93 0.73 0.65 0.57 1.02 0.79

 .................................................1996 1.16 1.01 1.03 1.29 1.20 1.33 1.31 0.59 0.62 1.00 1.40 

Equity capital ratio (%)..............................2000 8.16 12.76 10.27 8.46 7.07 9.52 8.74 8.47 9.31 8.06 6.45

 ................................................1998 8.94 12.05 10.64 9.17 7.81 9.88 10.12 9.34 9.51 8.74 7.61

 ................................................1996 8.40 11.16 9.88 8.24 7.31 8.96 9.39 9.03 8.60 7.88 7.23 

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 12 Second Quarter 2001 
TABLE IV-B. SECOND Quarter 2001, FDIC-Insured Savings Institutions 

SECOND QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,569 603 822 102 42 617 208 401 123 109 111 

Total assets (in billions)............................................................................. $1,274.7 $30.6 $254.1 $197.6 $792.3 $421.7 $91.0 $189.6 $42.0 $69.3 $461.1 

Total deposits (in billions).............................................................................. 775.7 24.2 192.6 135.6 423.3 282.6 63.3 130.7 26.8 40.9 231.4 

Net income (in millions)......................................................................... 3,354 53 443 414 2,444 1,078 119 343 87 227 1,498 

% of unprofitable institutions........................................................................ 10.1 17.9 5.2 5.9 2.4 7.5 12.0 13.2 13.8 9.2 6.3 

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

Performance Ratios (annualized, %) 

46.1 35.0 49.1 68.6 90.5 42.9 46.6 42.1 54.5 50.5 63.1 

Yield on earning assets............................................................................. 7.61 7.49 7.52 7.65 7.64 7.39 7.72 8.01 7.53 7.80 7.61 

Cost of funding earning assets...................................................................... 4.47 4.27 4.27 4.46 4.54 4.11 4.82 4.85 4.73 4.43 4.54 

Net interest margin................................................................................. 3.15 3.21 3.25 3.18 3.10 3.28 2.90 3.16 2.80 3.36 3.07 

Noninterest income to earning assets................................................................ 1.12 2.66 0.83 0.99 1.18 1.03 1.74 1.21 1.01 1.29 1.02 

Noninterest expense to earning assets........................................................... 2.57 4.74 2.95 2.66 2.33 2.58 3.46 3.39 2.45 2.78 2.02 

Credit loss provision to assets........................................................... 0.23 0.14 0.14 0.24 0.26 0.15 0.46 0.55 0.21 0.32 0.10 

Net operating income to assets.......................................................... 0.82 0.56 0.61 0.75 0.92 0.94 0.40 0.00 0.70 1.16 1.10 

Return on assets................................................................................ 1.06 0.70 0.71 0.85 1.24 1.04 0.53 0.73 0.84 1.31 1.31 

Return on equity.................................................................................... 12.51 5.37 6.67 9.62 16.43 10.52 6.17 8.55 9.10 15.69 18.27 

Net charge-offs to loans and leases................................................................. 0.25 0.15 0.11 0.23 0.31 0.14 0.44 0.53 0.25 0.43 0.16 

Credit loss provision to net charge-offs*........................................................... 131.95 141.44 182.43 152.46 122.16 162.91 147.96 141.87 116.87 112.21 95.23 

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

Structural Changes (QTR) 

58.34 80.20 71.46 62.16 52.13 57.13 73.84 75.91 62.83 59.01 47.83 

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

Thrifts absorbed by mergers............................................................................. 18 5 13 0 0 8 2 6 0 0 2 

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

PRIOR SECOND QUARTERS

 (The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%)................................2000 0.95 0.67 0.82 0.95 1.01 0.92 0.63 1.00 0.83 1.02 1.00

 .................................................1998 1.09 0.73 0.96 0.93 1.24 1.00 0.77 0.96 0.86 1.12 1.30

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

Net charge-offs to loans & leases (%) 

1.03 0.75 0.93 0.96 1.16 1.02 0.88 1.06 0.93 2.33 0.75 

 .................................................2000 0.18 0.05 0.08 0.35 0.17 0.13 0.27 0.25 0.17 0.21 0.17

 .................................................1998 0.20 0.08 0.12 0.30 0.21 0.19 0.40 0.22 0.16 0.41 0.13

 .................................................1996 0.33 0.12 0.18 0.31 0.46 0.32 0.34 0.13 0.18 0.41 0.46 

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

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

Rhode Island, Vermont, U.S. Virgin Islands

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

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

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

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

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

FDIC Quarterly Banking Profile 

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

June 30, 2001 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.......................................................... 0.87 1.71 1.01 0.76 0.82 0.69 0.94 1.12 1.38 1.50 0.80 

Construction, development, and land.................................................................... 1.27 1.64 1.45 1.15 1.19 0.95 1.40 1.36 1.40 1.79 0.93 

Commercial real estate........................................................................... 0.61 1.39 0.85 0.63 0.33 0.52 0.60 0.98 1.33 0.98 0.31 

Multifamily residential real estate................................................................... 0.23 1.11 0.39 0.34 0.14 0.16 1.01 0.60 0.20 1.48 0.14 

Home equity loans................................................................ 0.37 0.68 0.51 0.37 0.31 0.39 0.24 0.69 0.46 0.05 0.13 

Other 1-4 Family residential...................................................................... 0.97 1.81 1.08 0.84 0.92 0.78 0.95 1.18 1.48 1.56 0.93 

Commercial and industrial loans................................................................ 1.33 2.20 1.76 1.24 1.18 1.21 1.65 1.84 1.53 0.73 1.29 

Loans to individuals......................................................... 1.82 2.28 1.65 1.37 1.94 1.71 2.70 1.78 1.51 0.76 2.38 

Credit card loans.............................................................................. 2.09 0.79 2.14 2.01 2.10 1.89 4.59 2.73 3.42 0.58 1.65 

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

Percent of Loans Noncurrent* 

1.74 2.43 1.61 1.36 1.87 1.70 2.23 1.22 1.37 0.95 2.51 

All real estate loans...................................................................... 0.74 0.84 0.66 0.98 0.70 0.72 0.61 0.83 0.68 1.62 0.64 

Construction, development, and land.................................................................... 1.28 1.02 1.09 1.21 1.45 0.86 0.87 1.12 2.12 1.63 1.53 

Commercial real estate.......................................................................... 1.03 1.13 0.87 1.57 0.80 0.90 0.87 1.09 0.98 1.92 1.10 

Multifamily residential real estate................................................................ 0.34 0.88 0.28 0.79 0.16 0.27 0.30 0.38 0.13 7.87 0.10 

Home equity loans............................................................................... 0.18 0.25 0.18 0.29 0.14 0.20 0.07 0.29 0.20 0.02 0.08 

Other 1-4 Family residential........................................................ 0.73 0.80 0.64 0.89 0.73 0.75 0.58 0.85 0.55 1.21 0.67 

Commercial and industrial loans............................................................ 1.66 1.60 1.34 1.83 1.71 1.35 1.23 2.18 1.83 1.97 2.04 

Loans to individuals.............................................................................. 0.74 0.97 0.57 0.53 0.81 0.59 1.00 1.12 0.48 0.50 0.44 

Credit card loans.............................................................................. 1.66 0.43 0.68 0.94 1.77 1.55 3.12 2.24 0.97 0.71 0.74 

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

Percent of Loans Charged-off (net, YTD) 

0.44 1.02 0.56 0.52 0.34 0.47 0.47 0.45 0.45 0.28 0.41 

All real estate loans................................................................................ 0.05 0.03 0.03 0.10 0.05 0.04 0.04 0.08 0.07 0.05 0.05 

Construction, development, and land.................................................................... 0.10 0.31 0.05 0.20 0.06 0.02 0.07 0.09 0.31 0.16 0.10 

Commercial real estate........................................................................ 0.11 0.04 0.06 0.17 0.12 0.07 0.12 0.05 0.23 0.07 0.22 

Multifamily residential real estate................................................. -0.01 -0.07 -0.03 0.00 -0.01 -0.01 0.00 0.01 -0.05 0.00 -0.01 

Home equity loans.......................................................................... 0.06 0.02 0.04 0.12 0.05 0.05 0.19 0.07 0.11 0.03 0.00 

Other 1-4 Family residential....................................................................... 0.05 0.02 0.02 0.09 0.05 0.04 0.02 0.09 0.04 0.01 0.05 

Commercial and industrial loans.......................................................................... 1.23 1.02 0.78 0.89 1.52 0.87 2.36 0.88 1.40 1.26 1.81 

Loans to individuals............................................................................... 1.92 0.61 0.79 1.45 2.33 1.13 1.66 3.69 0.93 0.96 1.81 

Credit card loans........................................................................ 4.70 1.26 2.89 3.70 4.88 3.63 5.35 7.62 5.53 1.44 3.62 

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

Loans Outstanding (in billions) 

0.98 0.55 0.54 1.38 1.02 0.75 0.81 1.21 0.65 0.48 1.59 

All real estate loans..................................................................................... $751.7 $18.2 $155.1 $116.5 $461.8 $229.9 $50.7 $116.9 $26.7 $32.2 $295.3 

Construction, development, and land.................................................................... 36.8 1.1 10.3 9.3 16.1 7.6 5.5 5.8 1.7 7.2 8.9 

Commercial real estate........................................................................... 62.7 1.7 21.1 16.4 23.5 30.3 4.3 7.8 3.2 4.1 13.0 

Multifamily residential real estate........................................................................ 58.3 0.5 9.0 14.5 34.3 17.1 0.9 5.5 1.2 1.2 32.4 

Home equity loans.............................................................................. 25.5 0.5 6.0 4.2 14.8 8.7 2.4 6.4 0.6 0.9 6.6 

Other 1-4 Family residential........................................................................... 568.1 14.3 108.6 72.1 373.1 166.2 37.6 91.4 20.0 18.7 234.2 

Commercial and industrial loans...................................................................... 37.7 0.8 7.5 7.5 21.9 17.0 3.6 5.4 1.1 3.3 7.3 

Loans to individuals.................................................................... 65.0 1.5 10.9 9.2 43.5 18.0 9.0 15.9 2.1 9.9 10.1 

Credit card loans.......................................................... 16.0 0.1 1.3 0.3 14.4 2.1 1.8 6.0 0.1 5.0 1.0 

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

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

48.6 1.3 9.5 8.8 29.0 15.8 7.2 10.0 2.0 4.8 8.9 

All other real estate owned........................................................................... $1,031.1 $29.4 $197.2 $319.6 $484.9 $276.5 $107.0 $191.0 $91.1 $76.5 $289.0 

Construction, development, and land.................................................................... 158.1 3.1 22.7 32.1 100.3 7.7 51.4 12.8 43.7 14.6 27.9 

Commercial real estate........................................................................ 250.8 4.7 56.4 146.7 43.0 128.8 11.7 24.4 22.1 30.1 33.8 

Multifamily residential real estate.............................................................. 32.9 0.7 10.1 19.6 2.5 6.7 0.7 10.5 0.2 10.2 4.7 

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

Troubled Real Estate Asset Rates*** 

(% of total RE assets) 

603.6 21.2 111.0 127.9 343.4 138.8 44.4 144.3 27.5 21.9 226.7 

All real estate loans.............................................................................. 0.87 1.00 0.79 1.25 0.80 0.84 0.82 0.99 1.02 1.85 0.74 

Construction, development, and land.................................................................... 1.70 1.29 1.30 1.55 2.06 0.96 1.79 1.33 4.52 1.83 1.84 

Commercial real estate............................................................... 1.44 1.50 1.14 2.47 0.99 1.33 1.14 1.41 1.67 2.67 1.36 

Multifamily residential real estate........................................................... 0.39 1.01 0.39 0.92 0.16 0.30 0.37 0.57 0.15 8.65 0.11 

1-4 family residential............................................................................... 0.81 0.92 0.71 1.02 0.79 0.80 0.66 0.96 0.68 1.26 0.75 

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

** TFR filers report "All other real estate owned" net of valuation allowances, while individual categories of OREO are reported gross. 

*** Noncurrent real estate loans plus other real estate owned as a percent of total real estate loans plus OREO. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 14 Second Quarter 2001 
ALL FDIC-INSURED INSTITUTIONS 

n Insured Deposit Growth Slows in Second Quarter 

n BIF Reserve Ratio Rises To 1.33 Percent 

n Loss Provision Causes SAIF Reserve Ratio to Decline 3 Basis Points 

n One Small BIF-Member Institution Fails During Second Quarter 

FDIC-insured deposits increased by .5 percent 

during the second quarter, the slowest rate of 

growth since the third quarter of 1999. Deposits 

insured by the Bank Insurance Fund (BIF) 

increased .5 percent ($11.1 billion) during the 

second quarter, following a first quarter increase of 

3.1 percent. Deposits insured by the Savings 

Association Insurance Fund (SAIF) rose by .7 

percent ($5.2 billion), following a 1.7 percent rise in 

the first quarter. 

“Sweeps” of cash management funds to FDICinsured accounts slowed during the quarter, but 

continued to be a driving force behind insured 

deposit growth. Sweeps of cash management 

funds increased BIF-insured deposits by an 

estimated $8 billion (72 percent of insured deposit 

growth) during the second quarter. These sweeps 

also increased SAIF-insured deposits by an 

estimated $1.2 billion (23 percent of insured deposit 

growth). Since the end of March 2000 these sweep 

accounts have added an estimated $66 billion to 

BIF-insured deposits and $3.5 billion to SAIFinsured deposits. 

The BIF grew by .8 percent ($255 million) during the 

second quarter of 2001, ending the quarter with a 

balance of $31.68 billion (unaudited). The growth of 

the BIF more than offset the increase in BIF-insured 

deposits, and the reserve ratio (fund balance as a 

percent of insured deposits) rose from 1.32 percent 

on March 31 to 1.33 percent on June 30. Sweeps 

of cash management funds limited the increase in 

the BIF reserve ratio by less than half a basis point 

(.0044 percent) during the quarter. 

The SAIF shrank during the second quarter of 2001 

by $181 million (1.6 percent) to $10.79 billion 

(unaudited). The decline of the fund balance was 

mainly caused by a $310 million provision for 

insurance losses. The shrinkage of SAIF plus the 

quarterly increase in SAIF-insured deposits 

reduced the SAIF reserve ratio from 1.43 on March 

31 to 1.40 on June 30. This was the largest drop (3 

basis points) since the recapitalization of SAIF in 

1996. The SAIF reserve ratio is now at its lowest 

level since the fourth quarter of 1998. Sweeps of 

cash management funds lowered the SAIF reserve 

ratio by slightly more than half a basis point (.0063 

percent) during the second quarter. 

Only one insured institution failed during the second 

quarter of 2001, a BIF-member commercial bank 

with assets of $9.5 million. The estimated cost to 

the BIF for this failure is $80 thousand. For the first 

six months of 2001 two BIF-member institutions 

have failed with combined assets of $26 million at 

an estimated cost of $200 thousand. During the 

same period no SAIF member institutions failed.1 

1 Superior Bank FSB, Hinsdale, Illinois failed early in the third quarter on July 27, 2001. 

QUARTERLY PERCENTAGE CHANGE IN 

INSURANCE FUND BALANCES, 1999–2001 

Percent Change (not annualized) 

1.0 

1.3 1.4 

0.7 

1.5 

1.0 

1.6 

0.5 

2.0 

-1.7 

-0.1 

-1.1 

-0.3 

1.1 

0.1 

2.6 

1.4 1.5 

1 2 3 4 1 2 3 4 1 2 

Bank Insurance Fund (BIF) 

Savings Association 

Insurance Fund (SAIF) 

0.8 0.8 

0 

1999 2000 2001 

FDIC Quarterly Banking Profile 

Second Quarter 2001 15 All FDIC-Insured Institutions 
 

 

 

 

 

 

 

 

 

 

 

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

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

Number of institutions reporting............................................................................................ 9,747 10,101 9,903 10,221 10,463 10,922 11,453 

Total assets............................................................................ $ 7,634,826 $7,162,389 $7,460,869 $6,883,687 $6,530,950 $6,041,128 $5,607,333 

Total deposits......................................................................... 5,020,429 4,689,910 4,914,767 4,538,085 4,386,298 4,125,862 3,925,059 

Number of problem institutions................................................................................... 102 89 94 79 84 92 117 

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

Number of failed/assisted institutions.......................................................................... 2 3 7 8 3 1 6 

Assets of failed/assisted institutions (in billions)..................................................................... $0.03 $0.16 $0.41 $1.56 $0.37 $0.03 $0.22 

** As of June 30. 

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

(dollar figures in millions) 

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

2nd Quarter 1st Quarter 2nd Quarter %Change 

2001 2001 2000 00:2-01:2 

9,747 9,822 10,101 -3.5 

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

CONDITION DATA 

1,954,224 1,933,522 1,904,615 2.6 

Total assets................................................................................................... $7,634,826 $7,570,597 $7,162,389 6.6

 Loans secured by real estate............................................................................................. 2,489,374 2,442,663 2,328,555 6.9 

1-4 Family residential.......................................................................................... 1,537,164 1,512,229 1,462,226 5.1 

Home equity loans.................................................................. 160,723 154,234 136,530 17.7 

Multifamily residential property.................................................... 118,852 119,088 114,628 3.7 

Commercial real estate........................................................... 541,787 531,460 503,770 7.5 

Construction, development, and land............................................ 221,361 210,134 181,842 21.7 

Other real estate loans............................................................... 70,210 69,753 66,088 6.2 

Commercial & industrial loans 1,063,554 1,081,109 1,064,622 -0.1

 Loans to individuals............................................................................... 675,660 663,117 630,916 7.1

 Credit cards & related plans................................................................................ 242,341 232,943 234,490 3.3

 Other loans & leases.............................................................................. 494,182 495,014 482,738 2.4

 Less: Unearned income & contra accounts.................................................................................. 2,941 2,969 3,411 -13.8

 Total loans & leases................................................................................................ 4,719,830 4,678,935 4,503,420 4.8

 Less: Reserve for losses.................................................................................. 73,375 72,193 68,960 6.4 

Net loans and leases............................................................................. 4,646,455 4,606,741 4,434,461 4.8 

Securities....................................................................................................................................... 1,335,503 1,328,561 1,325,417 0.8 

Other real estate owned........................................................................................... 4,234 4,064 3,891 8.8 

Goodwill and other intangibles............................................................................... 130,558 122,727 118,076 10.6 

All other assets................................................................................. 1,518,076 1,508,505 1,280,544 18.5 

Total liabilities and capital.................................................................... 7,634,826 7,570,597 7,162,389 6.6

 Deposits....................................................................... 5,020,429 4,948,689 4,689,910 7.0

 Other borrowed funds..................................................................... 1,500,876 1,506,997 1,477,173 1.6

 Subordinated debt...................................................................... 93,476 93,692 85,050 9.9

 All other liabilities......................................................................... 354,222 368,318 310,720 14.0

 Equity capital.................................................................................... 665,822 652,901 599,536 11.1 

Loans and leases 30-89 days past due......................................................... 55,190 55,632 45,722 20.7 

Noncurrent loans and leases................................................................... 55,466 52,378 41,896 32.4 

Restructured loans and leases........................................................................ 2,525 2,573 2,673 -5.5 

Direct and indirect investments in real estate.............................................................. 881 902 998 -11.7 

Mortgage-backed securities.................................................................................. 726,267 706,055 663,456 9.5 

Earning assets................................................................................... 6,648,179 6,604,663 6,271,347 6.0 

FHLB Advances (Source: TFR, FHFB, Call Reports)................................................................................... 438,214 438,229 428,665 2.2 

Unused loan commitments................................................................. 4,960,332 4,826,558 4,383,746 13.2 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

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

2001 2000 %Change 2001 2000 00:2-01:2 

$257,912 $246,809 4.5 $126,445 $126,600 -0.1 

135,404 129,704 4.4 64,095 67,535 -5.1 

122,509 117,104 4.6 62,351 59,064 5.6 

18,171 13,976 30.0 9,552 7,740 23.4 

85,420 79,595 7.3 42,435 38,515 10.2 

124,546 119,567 4.2 62,712 61,500 2.0 

3,877 -1,445 N/M 1,906 -885 N/M 

23,461 21,933 7.0 11,878 10,069 18.0 

-399 21 N/M -31 -2 N/M 

45,230 39,799 13.6 22,518 17,382 29.5 

* Excludes insured branches of foreign banks (IBAs). N/M - Not meaningful 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 16 Second Quarter 2001 
 

 

 

 

 

TABLE III-C. Selected Insurance Fund Indicators* 

(dollar figures in millions) 

Bank Insurance Fund 

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

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

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

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

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

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

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

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

Savings Association Insurance Fund 

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

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

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

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

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

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

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

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

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

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

BIF 

1.45 SAIF 

1.43 1.43 1.43 

1.39 

1.38 

1.37 1.37 

1.36 1.36 

1.35 

1.34 

1.33 

1.43 1.43 

1.40 

1.35 

1.33 

1.32 

1.31 

12/00 3/01 6/01 

Preliminary 

2nd Quarter 

2001 

1st Quarter 

2001 

2nd Quarter 

2000 

%Change 

00:2-01:2 

1.33 1.32 1.33 0.0 

$31,681 $31,426 $29,780 6.4 

2,383,235 2,372,090 2,239,060 6.4 

61,462 60,692 52,135 17.9 

2,321,773 2,311,399 2,186,925 6.2 

3,418,402 3,364,031 3,136,237 9.0 

62,533 61,605 53,040 17.9 

3,355,870 3,302,426 3,083,196 8.8 

1.40 1.43 1.43 -2.1 

$10,792 $10,973 $10,538 2.4 

772,896 767,677 738,186 4.7 

317,223 312,355 289,334 9.6 

72,628 70,454 72,311 0.4 

383,045 384,868 376,541 1.7 

860,669 846,157 795,897 8.1 

318,279 312,957 290,023 9.7 

88,367 86,561 84,606 4.4 

454,024 446,640 421,268 7.8 

Fund Balances and Insured Deposits 

($Millions) 

BIF BIF-Insured SAIF SAIF-Insured 

Balance Deposits Balance Deposits 

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

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

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

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

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

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

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

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

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

6/01 31,681 2,383,235 10,792 772,896 

Insurance Fund Reserve Ratio* 

Percent of Insured Deposits 

Target 

Ratio 

1.25 

0.0 

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

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

may reflect adjustments. As a result, prior period reserve ratios may differ from previously reported values. Fund balances in 2000 

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

TABLE IV-C. Closed/Assisted Institutions 

(dollar figures in millions) 

BIF Members 

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

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

SAIF Members 

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

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

2001** 2000** 2000 1999 1998 1997 1996 

2 

$28 

2 

$124 

6 

$378 

7 

$1,490 

3 

$371 

1 

$27 

5 

$186 

0 

$0 

1 

$34 

1 

$30 

1 

$71 

0 

$0 

0 

$0 

1 

$34 

** Through June 30. 

FDIC Quarterly Banking Profile 

Second Quarter 2001 17 All FDIC-Insured Institutions 
 

 

 

 

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

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

BIF Members 

Number of institutions reporting................................................................................. 8,448 8,752 8,571 8,834 9,031 9,404 9,823 

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

Other BIF-members................................................................................................. 7,670 7,999 7,815 8,090 8,286 8,626 9,030 

Total assets......................................................................................................... $ 6,641,237 $6,232,597 $6,508,709 $5,980,156 $5,702,773 $5,285,403 $4,857,761 

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

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

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

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

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

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

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

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

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

SAIF Members 

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

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

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

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

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

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

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

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

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

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

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

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

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

4,411,911 4,126,410 4,337,668 3,987,382 3,843,816 3,611,453 3,404,204 

40,587 35,303 73,706 73,972 64,334 61,459 54,483 

1.23 1.16 1.18 1.30 1.18 1.22 1.17 

14.24 13.72 13.92 15.11 13.81 14.44 14.14 

0.80 0.65 0.72 0.62 0.64 0.67 0.77 

76 73 74 66 68 73 86 

$12,152 $11,136 $10,787 $4,450 $5,326 $4,598 $6,624 

2 2 6 7 3 1 5 

$28 $124 $378 $1,490 $371 $27 $182 

1,317 1,368 1,333 1,387 1,432 1,518 1,629 

130 123 123 123 116 112 94 

1,187 1,245 1,210 1,264 1,316 1,406 1,535 

$993,589 $929,792 $952,160 $903,531 $828,177 $755,724 $749,573 

608,518 563,499 577,100 550,703 542,481 514,409 520,855 

4,643 4,495 8,069 8,450 7,598 6,486 4,892 

0.96 0.99 0.89 0.99 0.98 0.94 0.67 

11.63 12.50 11.12 11.97 11.34 11.13 8.08 

0.69 0.60 0.65 0.64 0.80 0.98 1.07 

26 16 20 13 16 19 31 

$11,537 $7,647 $13,053 $5,524 $5,992 $1,662 $5,548 

0 1 1 1 0 0 1 

$0 $34 $30 $71 $0 $0 $35 

* Excludes insured branches of foreign banks (IBAs). 

** Through June 30, ratios annualized where appropriate. 

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

(dollar figures in millions) 

June 30, 2001 

Commercial Banks and Savings Institutions 

Number of Total Domestic 

Institutions Assets Deposits* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks............................................................................... 8,178 6,360,162 3,565,001 2,163,430 319,580 2,483,010 

BIF-member......................................................................................................... 8,069 6,262,668 3,496,683 2,146,139 283,056 2,429,195 

SAIF-member..................................................................................................... 109 97,494 68,318 17,291 36,524 53,815 

FDIC-Supervised..................................................................................................... 5,027 1,218,080 905,487 603,409 77,998 681,407 

OCC-Supervised..................................................................................................... 2,176 3,448,292 1,890,053 1,143,626 175,563 1,319,189 

Federal Reserve-Supervised.................................................................................. 975 1,693,791 769,460 416,395 66,019 482,414 

FDIC-Insured Savings Institutions................................................................................. 1,569 1,274,664 775,696 218,574 453,316 671,890 

OTS-Supervised Savings Institutions......................................................................... 1,049 970,449 565,157 90,903 395,499 486,402 

BIF-member........................................................................................................ 40 132,627 66,872 48,933 12,454 61,387 

SAIF-member......................................................................................................... 1,009 837,822 498,285 41,971 383,045 425,016 

FDIC-Supervised State Savings Banks................................................................................ 520 304,215 210,540 127,671 57,817 185,488 

BIF-member......................................................................................................... 321 245,942 168,673 125,470 21,713 147,183 

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

Total Commercial Banks and 

199 58,273 41,866 2,201 36,104 38,305 

Savings Institutions............................................................................................. 9,747 7,634,826 4,340,697 2,382,004 772,896 3,154,900 

BIF-member........................................................................................................ 8,430 6,641,237 3,732,228 2,320,541 317,223 2,637,764 

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

Other FDIC-Insured Institutions 

1,317 993,589 608,469 61,462 455,673 517,135 

U.S. Branches of Foreign Banks................................................................................ 18 8,839 4,083 1,232 0 1,232 

Total FDIC-Insured Institutions...................................................................................... 9,765 7,643,666 4,344,780 2,383,235 772,896 3,156,131 

* Excludes $680 billion in foreign office deposits, which are uninsured. 

FDIC Quarterly Banking Profile 

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

BIF Assessment Base Distribution 

Assessable Deposits in Millions as of June 30, 2001 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2001 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

7,828 

$3,292,354 

140 

$31,477 

1 

$216 

92.7 

96.3 

1.7 

0.9 

0.0 

0.0 

394 4.7 

$84,402 2.5 

21 0.2 

$2,126 0.1 

0 0.0 

$0 0.0 

52 

$5,472 

7 

$1,858 

5 

$497 

0.6 

0.2 

0.1 

0.1 

0.1 

0.0 

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

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

by on-site examinations. 

SAIF Assessment Base Distribution 

Assessable Deposits in Millions as of June 30, 2001 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2001 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

1,167 

$813,002 

12 

$6,256 

1 

$60 

88.6 

94.5 

0.9 

0.7 

0.1 

0.0 

105 8.0 

$29,661 3.4 

8 0.6 

$2,660 0.3 

1 0.1 

$31 0.0 

13 

$2,108 

8 

$5,022 

2 

$1,871 

1.0 

0.2 

0.6 

0.6 

0.2 

0.2 

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

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

by on-site examinations. 

Assessment Rate Schedules 

Second Semiannual 2001 Assessment Period 

Cents Per $100 of Assessable Deposits 

Capital Group 

Supervisory Risk Subgroup 

A B C 

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

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

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

0 

3 

10 

3 

10 

24 

17 

24 

27 

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

Currently, the rate schedules are identical. 

FDIC Quarterly Banking Profile 

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

1993–2001 

Number of Institutions 

12/93 12/94 12/95 12/96 12/97 12/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 12/00 3/01 6/01 

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

242 33 17 5 5 5 5 5 4 4 5 11 12 17 17 17 

334 

72 

31 

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

$ Billions 

Saving Institutions 

Commercial Banks 

Saving Institutions 

Commercial Banks 

12/93 12/94 12/95 12/96 12/97 12/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 12/00 3/01 6/01 

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

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

572 

318 

193 

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

Saving Institutions 

Commercial Banks 

Saving Institutions 

Commercial Banks 

ASSETS OF FDIC-INSURED “PROBLEM” INSTITUTIONS, 

1993–2001 

FDIC Quarterly Banking Profile 

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

This publication contains financial data and other information 

for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding the 

comparability of source data and reporting differences over 

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

FDIC-Insured Commercial Banks 

(Tables I-A through V-A.) 

This section covers commercial banks insured by the FDIC 

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

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

the three federal commercial bank regulators (the Board of 

Governors of the Federal Reserve System, the FDIC or the 

Office of the Comptroller of the Currency). 

FDIC-Insured Savings Institutions 

(Tables I-B through V-B.) 

This section covers savings institutions insured by either BIF 

or SAIF that operate under state or federal banking codes 

applicable to thrift institutions, except for one self-liquidating 

institution primarily funded by the FSLIC Resolution Fund 

(FRF). Savings institutions in Resolution Trust Corporation 

conservatorships are also excluded from these tables while 

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

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

Office of Thrift Supervision (OTS). 

FDIC-Insured Institutions by Insurance Fund 

(Tables I-C through VII-C.) 

Summary balance-sheet and earnings data are provided for 

commercial banks and savings institutions according to 

insurance fund membership. BIF-member institutions may 

acquire SAIF-insured deposits, resulting in institutions with 

some deposits covered by both insurance funds. Also, SAIF 

members may acquire BIF-insured deposits. The insurance 

fund membership does not necessarily reflect which fund 

insures the largest percentage of an institution’s deposits. 

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

each include deposits from both insurance funds. Depository 

institutions that are not insured by the FDIC through either 

the BIF or SAIF are not included in the FDIC Quarterly 

Banking Profile. U.S. branches of institutions headquartered 

in foreign countries and non-deposit trust companies are not 

included unless otherwise indicated. Efforts are made to 

obtain financial reports for all active institutions. However, in 

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

DATA SOURCES 

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Call Reports and the OTS 

Thrift Financial Reports submitted by all FDIC-insured 

depository institutions. This information is stored on and 

retrieved from the FDIC’s Research Information System 

(RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting 

and accounting requirements of the FFIEC Call Reports. 

Parent institutions are required to file consolidated reports, 

while their subsidiary financial institutions are still required to 

file separate reports. Data from subsidiary institution reports 

are included in the Quarterly Banking Profile tables, which 

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

any double-counting of subsidiary data. 

All asset and liability figures used in calculating performance 

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

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

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

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

rates represent the percentage change over a 12-month 

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

institutions in the current period. 

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

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

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

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

ACCOUNTING CHANGES 

FASB Statement No. 133 Accounting for Derivative 

Instruments and Hedging Activities — establishes new 

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

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

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

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

hedge. Derivatives held for purposes other than trading are 

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

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

or gain on the hedged item attributable to the risk being 

hedged. Any ineffectiveness of the hedge could result in a 

net gain or loss on the income statement. Accumulated net 

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

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

value of the derivative changes. 

Initial transition adjustments upon adoption of FAS 133 are 

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

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

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

be reflected as an adjustment to net income if transferred to 

the trading category or an adjustment to equity if transferred 

to the available-for-sale category. 

Subchapter S Corporations — The Small Business Job 

Protection Act of 1996 changed the Internal Revenue Code 

FDIC Quarterly Banking Profile 

Second Quarter 2001 21 Notes to Users 
to allow financial institutions to elect Subchapter S corporation status, beginning in 1997. A Subchapter S corporation is 

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

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

federal income taxes at the corporate level. Its taxable 

income flows through to its shareholders in proportion to their 

stock ownership, and the shareholders generally pay federal 

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

have the effect of reducing institutions’ reported taxes and 

increasing their after-tax earnings. 

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

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

DEFINITIONS (in alphabetical order) 

All other assets — total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

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

agreements to resell, fair market value of derivatives, and 

other assets. 

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

sheet credit losses, fair market value of derivatives, and 

other liabilities. 

Assessment base distribution — assessable deposits 

consist of BIF and SAIF deposits in banks’ domestic offices 

with certain adjustments. Each institution’s assessment 

depends on its assigned risk-based capital category and 

supervisory risk subgroup: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) Capital * Capital * Leverage Equity 

Well-capitalized >10 and >6 and >5 — 

Adequately 

capitalized >8 and >4 and >4 — 

Undercapitalized >6 and >3 and >3 — 

Significantly 

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

Critically 

undercapitalized — — — <2 

*As a percentage of risk-weighted assets. 

For purpose of BIF and SAIF assessments, risk-based 

assessment rules combine the three lowest capital rating 

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

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

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

those rated 4 or 5 are in subgroup C. 

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

attributable amount acquired from BIF members. 

Construction and development loans — includes loans 

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

land acquisition and development. 

Core capital — common equity capital plus noncumulative 

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

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

with supervisory capital regulations. 

Cost of funding earning assets — total interest expense 

paid on deposits and other borrowed money as a percentage 

of average earning assets. 

Derivatives (notional amount) — represents the sum of the 

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

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

contracts). 

Futures and forward contracts — a contract in which the 

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

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

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

on organized exchanges which set limits on counterparty 

credit exposure. Forward contracts do not have standardized 

terms and are traded over the counter. 

Option contracts — a contract in which the buyer acquires 

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

amount of an underlying variable or index at a stated price 

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

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

discretion of the buyer of the contract. 

Swaps — an obligation between two parties to exchange a 

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

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

fixed, or determined for each settlement date by multiplying 

the quantity (notional principal) of the underlying variable or 

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

payment but is not exchanged. 

Direct and indirect investments in real estate — excludes 

loans secured by real estate and property acquired through 

foreclosure. 

Earning assets — all loans and other investments that earn 

interest or dividend income. 

Efficiency Ratio — Noninterest expense less amortization 

of intangible assets as a percent of net interest income plus 

noninterest income. This ratio measures the proportion of net 

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

Estimated insured deposits — in general, insured deposits 

are estimated to be total domestic deposits minus estimated 

uninsured deposits. The uninsured estimate is calculated as 

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

Beginning June 30, 2000 the amount of estimated uninsured 

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

or procedure for calculating uninsured deposits. 

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

liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the FDIC 

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

“assisted” when the institution remains open and receives 

some insurance funds in order to continue operating. 

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

reported by Call Report filers (or as furnished by the Federal 

Housing Finance Board (FHFB) for Call filers prior to 2001) 

and as reported by TFR filers. 

FDIC Quarterly Banking Profile 

Notes to Users 22 Second Quarter 2001 
Goodwill and other intangibles — intangible assets 

include servicing rights, purchased credit card relationships 

and other identifiable intangible assets. 

Loans secured by real estate — includes home equity 

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

and all other loans secured by real estate. 

Loans to individuals — includes outstanding credit card 

balances and other secured and unsecured consumer loans. 

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

with remaining maturities or repricing intervals of over five years. 

Mortgage-backed securities — certificates of participation 

in pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored 

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

Net charge-offs — total loans and leases charged off 

(removed from balance sheet because of uncollectibility), 

less amounts recovered on loans and leases previously 

charged off. 

Net interest margin — the difference between interest and 

dividends earned on interest-bearing assets and interest 

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

made for interest income that is tax exempt. 

Net operating income — income excluding discretionary 

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

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

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

in nonaccrual status. 

Noncurrent loans & leases — the sum of loans and leases 

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

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

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

issued to the U.S. Treasury, FHLB advances, other borrowed 

money, mortgage indebtedness, obligations under capitalized leases and trading liabilities, less revaluation losses on 

assets held in trading accounts. 

Other real estate owned — primarily foreclosed property. 

Direct and indirect investments in real estate ventures are 

excluded. The amount is reflected net of valuation 

allowances. For institutions that file a Thrift Financial Report 

(TFR), the valuation allowance subtracted also includes 

allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported 

gross of valuation allowances. 

Percent of institutions with earnings gains — the percent 

of institutions that increased their net income (or decreased 

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

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

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

concern. “Problem” institutions are those institutions with 

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

degree of risk and supervisory concern, they are rated either 

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

SAIF-member institutions whose primary federal regulator is 

the OTS, the OTS composite rating is used. 

Reserves for losses — the allowance for loan and lease 

losses on a consolidated basis. Prior to March 31, 2001 

reserves for losses included the allocated transfer risk 

reserve, which is no longer included as part of the loss 

reserve, but netted from loans and leases. 

Restructured loans and leases — loan and lease financing 

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

compliance with the modified terms. 

Return on assets — net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total assets. The basic yardstick of bank profitability. 

Return on equity — net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total equity capital. 

Risk-weighted assets — assets adjusted for risk-based 

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

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

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

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

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

attributable amount acquired from SAIF members. 

Securities — excludes securities held in trading accounts. 

Banks’ securities portfolios consist of securities designated 

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

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

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

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

adjustments for income taxes. Thrift Financial Report (TFR) 

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

for sale. 

Troubled real estate asset rate — noncurrent real estate 

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

estate loans and other real estate owned. 

Unearned income & contra accounts — unearned income 

for Call Report filers only. 

Unused loan commitments — includes credit card lines, 

home equity lines, commitments to make loans for construction, loans secured by commercial real estate, and unused 

commitments to originate or purchase loans. 

Volatile liabilities — the sum of large-denomination time 

deposits, foreign-office deposits, federal funds purchased, 

securities sold under agreements to repurchase, and other 

borrowings. 

Yield on earning assets — total interest, dividend and fee 

income earned on loans and investments as a percentage of 

average earning assets. 

FDIC Quarterly Banking Profile 

Second Quarter 2001 23 Notes to Users