�Uarterl Bankin Profile

FDIC-INSURED INSTITUTIONS FOURTH QUARTER 2002 

• Fourth-Quarter Earnings Are Third-Highest Ever 

• Income And Profitability Set New Records In 2002 

• Consumer Lending Continues To Sustain Asset Growth 

• Noncurrent Loans Register First Decline In Three Years 

• Eleven Failures In 2002 Are Most Since 1994 

This Profile Inaugurates New Presentation Format 

This issue of the Quarterly Banking Profile marks the

introduction of a new format that presents the condition and

performance of insured commercial banks and savings institutions as a single industry. It also contains new groupings

of institutions that are based on specific business line concentrations. These changes recognize the elimination of most of

the restrictions that differentiated commercial banks from

savings institutions in the past, as well as the fact that specialized charters account for a significant segment of the

industry.

Profitability Is Significantly Higher Than In 

Year-Ago Quarter 

Insured commercial banks and savings institutions

earned $25.6 billion in the fourth quarter of 2002, a

$3.5-billion (16.0-percent) increase over the fourth

quarter of 2001. The average return on assets (ROA)

was 1.23 percent in the fourth quarter, compared to 1.12

percent in the fourth quarter of 2001. More than half of

all banks and thrifts (55.8 percent) had higher quarterly

ROAs than a year earlier, and almost half (49.0 percent)

had an ROA of 1 percent or better for the quarter. The

improvement in earnings in the fourth quarter had

many sources. Expenses for credit losses were lower

than a year earlier. Lower interest rates helped institutions realize increased gains on sales of securities. Gains

on asset sales and increased service charges lifted noninterest income, and strong growth in interest-earning

assets boosted net interest income.

Loss Provisions Decline For First Time Since 1999 

Banks and thrifts set aside $13.7 billion in provisions for

loan losses in the fourth quarter, $2.5 billion (15.7 perChart 1 

The Industry Had Its Four Best Earnings Quarters
 

In 2002
 

$ Billions 

Securities and Other Gains/Losses, Net 30 

Net Operating Income 27.2 27.3 

25.3 25.6 

22.2 22.4 21.8 22.7 22.5 22.1 20.8 20 20.6 20.4 19.8 20.2 18.5 18.9 18.0 17.4 16.8 

10 

0 

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

1998 1999 2000 2001 2002 

cent) less than a year earlier, when large banks had sizable provisions for troubled loans to large corporate and

foreign borrowers. This is the first year-over-year

decline in quarterly loss provisions in more than three

years - since the third quarter of 1999. Sales of securities produced gains totaling $4.2 billion, an increase of

$1.6 billion (58.7 percent) from the fourth quarter of

2001, and the second-highest quarterly total ever, after

the $4.3 billion in gains realized in the third quarter.

Noninterest income was up by $3.3 billion (7.7 percent),

as gains on loan sales rose by $1.5 billion (83.7 percent),

and gains on sales of other assets increased by $707 million. At banks that file Call reports, income from service

charges on deposit accounts increased by $578 million

(7.8 percent). These improvements outweighed

declines in other categories of noninterest income, such

as trading revenue, which was down $609 million (24.7

percent) from a year earlier, and fiduciary income, which

was $458 million (8.5 percent) lower. 

A Publication of the Division of Insurance and Research Media inquiries: 202-898-6993 
 

FDIC Quarterly Banking Profile 

Falling Interest Rates Hurt Small Institutions’ 

Margins 

Net interest income was up by $2.5 billion (3.7 percent) from a year earlier, even though net interest

margins were narrower, because interest-earning

assets were 7.4 percent higher than a year ago. The

average net interest margin in the fourth quarter was

3.92 percent, down from 4.03 percent in the fourth

quarter of 2001. With short-term interest rates

falling during the fourth quarter, margins declined

from third-quarter levels at small banks and thrifts,

because their liabilities are less interest-sensitive

than their assets in the current low-rate environment. At institutions with more than $1 billion in

assets, average margins were unchanged from thirdquarter levels. 

Chart 2 

Margins Fell At Smaller Institutions 

In The Fourth Quarter 

Net Interest Margin (%) 

7.0 

6.0 

5.0 

4.0 

3.0 

Assets < $100 Million 

Assets > $100 Million 4.89

3.91 

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

1998 1999 2000 2001 2002 

Larger Institutions See Noninterest Expenses Rise 

Noninterest expenses were $4.6 billion (7.0 percent)

higher than in the fourth quarter of 2001, as salaries

and employee benefits costs increased by $2.7 billion

(9.8 percent). The increase in noninterest expenses

outpaced growth in the industry's net operating revenues (net interest income plus total noninterest

income), which were only 5.2 percent higher than a

year earlier. As a result, the "efficiency ratio," which

measures the extent to which noninterest expenses

absorb net operating revenues, worsened slightly, rising to 58.4 percent from 56.6 percent in the fourth

quarter of 2001. This increase in the relative burden

of overhead expenses was concentrated among larger

banks and thrifts; at institutions with less than $100

million in assets, the average efficiency ratio

improved.

Credit Card Lenders Continue to Out-Perform Rest of 

Industry 

Performance varied among different asset concentration groups, although most groups showed improved

results compared to a year earlier. Two groups that

include some of the largest banks - international

banks and institutions with assets greater than $1

billion that had no identified asset concentrations -

were the exception, as their average ROAs in the

fourth quarter were down from the fourth quarter of

2001. Institutions in these two groups together comprise almost 40 percent of total industry assets.

Credit-card lenders registered both the highest quarterly ROA and the greatest improvement in ROA;

their fourth-quarter average of 3.69 percent was

three times the industry average, and was 76 basis

points higher than a year earlier. This improvement

was largely driven by strong growth in noninterest

income and a reduced burden from loan-loss provisions. Mortgage lenders also registered improvement, thanks to strong demand for residential

mortgage loans. Their average ROA of 1.39 percent

was 42 basis points higher than a year earlier, as noninterest income was up substantially, and provisions

for loan losses were lower. Commercial lenders

enjoyed improved profitability, as their average ROA

rose by 27 basis points, to 1.30 percent. This gain

reflected reduced burdens from overhead expenses

and loan-loss provisions, amid signs of improving

credit quality in domestic portfolios. 

Chart 3 

Full Year 2002 ROA By Asset Concentration Group 

Percent 

3.60 

1.35 1.33 1.32 1.30 1.24 1.15 1.09 

0.85 

0.50 

1.00 

1.50 

2.00 

2.50 

3.00 

3.50 

4.00 

Credit Card Consumer All Other Mortgage Commercial Agricultural All Other Other International 

Institutions Lenders >$1 Billion Lenders Lenders Banks <$1 Billion Specialized Banks 

<$1 Billion 

FOURTH QUARTER 2002 2 ALL FDIC-INSURED INSTITUTIONS 
 

FDIC Quarterly Banking Profile 

Industry Earnings Exceeded $100 Billion For First Losses on Domestic C&I Loans Fell in the 

Time in 2002 Fourth Quarter 

The industry posted its four highest earnings quarters ever in 2002, as net income for the year soared

to $105.4 billion, surpassing the previous year's

results by $18.1 billion (20.8 percent). The industry's ROA in 2002 was a record 1.31 percent, eclipsing the high of 1.25 percent reached in 1999, and

well above the 1.14 percent ROA registered in 2001.

Almost two out of every three institutions (64.1 percent) had a higher ROA in 2002, and more than

half (54.7 percent) reported an ROA of 1 percent or

better for the year. Only 6.3 percent of insured

banks and thrifts posted net losses in 2002, the lowest proportion in 4 years. Net interest margins were

up in 2002, noninterest income growth was relatively

strong, gains from securities sales were sharply higher, and noninterest expense growth was held in

check. These positive developments outweighed the

negative effect of higher expenses for credit losses. 

Chart 4 

1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 

0 

0.5 

1.0 

1.5 

ROA (%) 

0 

6 

12 

18 

ROE (%) 

Return on Equity (ROE) 

_ _____I_____ ________

The Industry’s ROA Reached A Record High 

In 2002 

Credit Cards, Mortgages, and Commercial Lending 

All Improved in 2002 

Among the biggest gainers in 2002 were: credit-card

lenders, whose average ROA rose to 3.60 percent,

from 2.94 percent in 2001; mortgage lenders, whose

ROA increased from 1.05 percent to 1.32 percent;

and "other" institutions with assets greater than $1

billion, whose average ROA rose from 1.09 percent

to 1.33 percent. More modest improvements were

reported by agricultural banks, who posted a 12

basis-point increase in ROA, and "other" institutions

with assets less than $1 billion, who had an 11 basispoint increase.

Banks and thrifts charged-off $12.2 billion in loans

and leases during the fourth quarter, $1.4 billion

(10.0 percent) less than a year earlier. The improvement came from a $1.8-billion (29.7-percent)

decline in charge-offs of loans to commercial and

industrial (C&I) borrowers. Net charge-offs on

loans to domestic C&I borrowers were down by $1.9

billion (33.6 percent), while net charge-offs on loans

to non-U.S. borrowers increased by $249 million

(58.6 percent). Net charge-offs on leases increased

by $299 million (177.1 percent) compared to the

fourth quarter of 2001. Net charge-offs on consumer loans other than credit cards were $129 million (7.1 percent) higher than a year earlier.

Chart 5 

Noncurrent C&I Loans Decline For First Time
 

In Three Years
 $ Billions 

40 

Quarterly Net Charge-offs 31.8 Noncurrent Loans 30 4.3 

20 

27.5 

10 7.7 

0 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 

1997 1998 1999 2000 2001 2002 

Noncurrent C&I Loans Also Register Improvement 

The amount of banks' and thrifts' loans that were

noncurrent (90 days or more past due or in nonaccrual status) declined by $21 million during the

fourth quarter. Although small, this represented the

first quarterly decline in noncurrent loans since the

fourth quarter of 1999. The largest decline occurred

in C&I loans, where noncurrent loans fell by $1.2

billion (4.1 percent). Noncurrent construction and

development loans declined by $197 million (7.0

percent), and noncurrent leases shrank by $156 million (8.1 percent). Against these improvements,

noncurrent residential mortgage loans increased by

$895 million (6.8 percent), noncurrent credit card

loans grew by $471 million (7.9 percent), and nonALL FDIC-INSURED INSTITUTIONS 3 FOURTH QUARTER 2002 
 

FDIC Quarterly Banking Profile 

current other consumer loans rose by $223 million

(5.0 percent).

Credit-Card Charge-Offs Rose Sharply in 2002 

For all of 2002, insured banks and thrifts charged-off

$46.9 billion in loans and leases, an increase of $8.1

billion (20.8 percent) over the previous year's

charge-offs. The net charge-off rate for the year was

0.97 percent, the highest since 1992 (the charge-off

rate in 2001 was 0.83 percent). Net charge-offs on

credit card loans increased by $4.2 billion (32.9 percent), while C&I charge-offs were up by $2.1 billion

(14.1 percent), and non credit-card consumer loan

charge-offs rose by $1.2 billion (22.4 percent). Net

charge-offs of residential mortgage loans fell by $485

million (23.5 percent) in 2002. Despite the heightened level of charge-off activity, noncurrent loans

rose by $6.4 billion (10.2 percent) during 2002.

[This was less than half the increase in noncurrent

loans registered in 2001, when they increased by

$13.7 billion (28.0 percent).] Noncurrent C&I loans

finished the year $3.0 billion (12.4 percent) higher

than at the end of 2001; noncurrent residential

mortgage loans increased by $1.7 billion (13.9 percent); and noncurrent credit card loans grew by $1.3

billion (24.8 percent) during 2002.

Consumer Categories Account for Bulk of 

Asset Growth 

Total assets increased by $162.8 billion (2.0 percent)

in the fourth quarter, to $8.4 trillion. Loans

increased by $103.3 billion (2.1 percent), while securities grew by $43.2 billion (2.7 percent). Real estate

Chart 6 

Asset Concentration Groups’ Shares Of
 

Industry Assets
 

 

 __ __ _ I_ 

 _ _

 5 

CImm _c 

L _d ___

35 

I__ 

L _d __

_ ___h _

_ I_

 3 

5 

__h _

Credit Card Lenders 3.0% 

Other < $1 Billion 2.3% 

Consumer Lenders 2.0% 

Agricultural Banks 1.5% 

Other Specialized 0.7% 

< $1 Billion 

loan growth was particularly strong; the industry's

portfolio of residential mortgage loans increased by

$67.1 billion (4.6 percent), while commercial real

estate loans grew by $16.9 billion (2.8 percent), and

home equity loans were up by $16.8 billion (7.0 percent). C&I loans fell for the eighth consecutive

quarter, declining by $8.5 billion (0.9 percent).

Credit-card loans increased by $9.6 billion (3.4 percent), while other consumer loans rose by $9.1 billion (1.9 percent). The percentage of commercial

banks' assets that were "long-term," i.e., assets with

remaining maturities of 5 years or longer, increased

from 20.9 percent to 21.2 percent during the quarter.

This is the highest percentage ever reported by the

banking industry.

Deposit Growth Reaches Four-Year High in 

Fourth Quarter 

Total deposits increased by $176.8 billion (3.3 percent) during the fourth quarter, the largest quarterly

increase since the fourth quarter of 1998. Deposits

in foreign offices grew by $45.1 billion (7.4 percent).

At insured commercial banks (these account details

are not available for savings and loan associations),

demand deposits increased by $25.2 billion (4.5 percent), savings deposits grew by $78.0 billion (4.0 percent), and time deposits fell by $10.1 billion (0.8

percent). For all insured institutions, Fed funds purchased increased by $22.2 billion (3.6 percent), and

Federal Home Loan Bank (FHLB) borrowings

declined by $2.0 billion (0.4 percent) during the

quarter. 

Two Failures in Fourth Quarter Bring 2002 Total 

to Eleven 

The number of insured commercial banks and savings institutions reporting financial results declined

by 61 in the fourth quarter. There were 28 new charters added, while 84 institutions were absorbed by

mergers, and two institutions failed. During 2002,

the number of reporters declined by 259 (2.7 percent). 94 new charters were added in 2002, while

336 institutions were absorbed in mergers, and 11

institutions failed. This is the largest number of

bank and thrift failures in a year since 13 insured

institutions failed in 1994. In the fourth quarter, the

number of institutions on the FDIC's "Problem List"

declined from 146 to 136, and assets of "problem"

institutions fell from $42 billion to $39 billion. The

"Problem List" began 2002 with 114 institutions with

combined assets of $40 billion. 

FOURTH QUARTER 2002 4 ALL FDIC-INSURED INSTITUTIONS 
TABLE I-A. Selected Indicators, All FDIC-Insured Institutions* 

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

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

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

Noncurrent assets plus 

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

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

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

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

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

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

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

Savings Institutions ...............................................
 

Percentage of unprofitable institutions (%) ..............
 

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

Assets of problem institutions (in billions) ................
 

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

2002 2001 2000 1999 1998 1997 1996 

1.31 

14.17 

7.87 

0.90 

0.97 

7.20 

3.96 

18.56 

9,354 

7,887 

1,467 

6.29 

136 

$39 

11 

1.14 

12.99 

7.79 

0.88 

0.83 

5.45 

3.78 

-0.87 

9,613 

8,079 

1,534 

8.21 

114 

$40 

4 

1.14 

13.55 

7.71 

0.71 

0.59 

8.40 

3.78 

1.95 

9,904 

8,315 

1,589 

7.53 

94 

$24 

7 

1.25 

14.71 

7.8 

0.63 

0.53 

5.40 

3.90 

19.91 

10,221 

8,579 

1,642 

7.64 

79 

$10 

8 

1.16 1.18 1.1 

13.49 14.03 13.31 

7.59 7.62 7.66 

0.66 0.71 0.81 

0.59 0.57 0.53 

8.11 7.73 5.04 

3.91 4.04 4.06 

2.91 13.29 3.62 

10,463	 10,922 11,453 

8,773 9,142 9,527 

1,690 1,780 1,926 

5.97	 4.72 5.59 

84 92 117 

$11	 $6 $12 

3 1 6 

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

(dollar figures in millions) 

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

4th Quarter 

2002 

3rd Quarter 

2002 

4th Quarter 

2001 

%Change

 01:4-02:4 

9,354 9,415 9,613 -2.7 

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

CONDITION DATA 

2,017,498 2,003,532 1,967,615 2.5 

Total assets ......................................................................................................................... $8,434,686 $8,271,853 $7,868,395 7.2 

Loans secured by real estate .......................................................................................... 2,849,605 2,744,413 2,560,847 11.3 

1-4 Family residential mortgages ................................................................................. 1,513,259 1,446,130 1,379,876 9.7 

Commercial real estate ................................................................................................ 628,240 611,307 569,484 10.3 

Construction and development .................................................................................... 244,885 243,640 231,503 5.8 

Home equity lines ......................................................................................................... 256,424 239,586 184,320 39.1 

Commercial & industrial loans ......................................................................................... 953,910 962,389 1,020,183 -6.5 

Loans to individuals ......................................................................................................... 772,381 753,658 701,048 10.2 

Credit cards .................................................................................................................. 291,505 281,883 250,317 16.5 

Farm loans ....................................................................................................................... 47,326 48,181 48,411 -2.2 

Other loans & leases ....................................................................................................... 485,041 497,405 488,285 -0.7 

Less: Unearned income ................................................................................................... 3,549 3,789 3,276 8.3 

Total loans & leases ........................................................................................................ 5,057,389 4,954,075 4,767,085 6.1 

Less: Reserve for losses ................................................................................................. 85,196 83,846 80,081 6.4 

Net loans and leases ....................................................................................................... 4,972,193 4,870,229 4,687,005 6.1 

Securities ......................................................................................................................... 1,632,548 1,589,368 1,464,706 11.5 

Other real estate owned .................................................................................................. 5,250 5,040 4,617 13.7 

Goodwill and other intangibles ........................................................................................ 153,282 145,777 143,770 6.6 

All other assets ................................................................................................................ 1,671,413 1,661,440 1,568,297 6.6 

Total liabilities and capital ................................................................................................... 8,434,686 8,271,853 7,868,395 7.2 

Deposits ........................................................................................................................... 5,568,653 5,391,808 5,189,370 7.3 

Domestic office deposits .............................................................................................. 4,910,620 4,778,834 4,559,864 7.7 

Foreign office deposits ................................................................................................. 658,033 612,973 629,506 4.5 

Other borrowed funds ...................................................................................................... 1,569,081 1,576,018 1,496,092 4.9 

Subordinated debt ........................................................................................................... 98,544 95,992 99,227 -0.7 

All other liabilities ............................................................................................................. 421,805 444,617 376,540 12.0 

Equity capital ................................................................................................................... 776,603 763,419 707,166 9.8 

Loans and leases 30-89 days past due .............................................................................. 58,264 55,058 62,793 -7.2 

Noncurrent loans and leases .............................................................................................. 68,862 68,883 62,470 10.2 

Restructured loans and leases ........................................................................................... 3,255 3,547 3,192 2.0 

Direct and indirect investments in real estate ..................................................................... 712 696 687 3.6 

Mortgage-backed securities ................................................................................................ 911,825 901,707 810,107 12.6 

Earning assets .................................................................................................................... 7,291,237 7,154,193 6,790,966 7.4 

FHLB Advances .................................................................................................................. 450,497 452,474 452,527 -0.5 

Unused loan commitments ................................................................................................. 5,636,905 5,583,506 5,148,544 9.5 

Trust assets ........................................................................................................................ 11,216,922 10,736,455 11,865,516 -5.5 

Assets securitized and sold** .............................................................................................. 1,202,730 1,185,021 1,163,888 3.3 

Notional amount of derivatives** ........................................................................................ 56,291,405 53,711,719 45,443,413 23.9 

INCOME DATA 

4th Quarter 

2001 

%Change 

01:4-02:4 

Full Year 

2002 

Full Year 

2001 %Change 

4th Quarter 

2002 

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

From international operations ........................................................... 

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

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

Retained earnings ................................................................................... 

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

$429,818 $486,800 -11.7 $106,552 $112,883 -5.6 

152,838 235,010 -35.0 35,812 44,634 -19.8 

276,981 251,791 10.0 70,740 68,249 3.7 

51,355 46,296 10.9 13,676 16,215 -15.7 

182,526 168,791 8.1 46,696 43,375 7.7 

262,751 251,095 4.6 69,922 65,343 7.0 

12,124 8,734 38.8 4,214 2,655 58.7 

52,122 44,025 18.4 12,356 10,216 21.0 

-49 -649 N/M -52 -401 N/M 

105,353 87,250 20.8 25,643 22,103 16.0 

5,964 6,926 -13.9 1,466 984 49.0 

46,947 38,874 20.8 12,192 13,547 -10.0 

75,424 60,667 24.3 20,289 17,610 15.2 

29,930 26,583 12.6 5,355 4,493 19.2 

97,227 82,010 18.6 22,845 20,714 10.3 

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

** Commercial banks only. 

FDIC Quarterly Banking Profile 

Fourth Quarter 2002 5 All FDIC-Insured Institutions 
TABLE III-A. Full Year 2002, All FDIC-Insured Institutions 

FULL YEAR

 (The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

International 

Banks 

Agricultural 

Banks 

Credit Card 

Lenders 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

9,354 6 1,823 39 4,071 1,110 195 488 1,523 99 

Commercial banks ............................................... 7,887 6 1,819 38 3,739 257 150 422 1,376 80 

Savings institutions .............................................. 1,467 0 4 1 332 853 45 66 147 19 

Total assets (in billions) .......................................... $8,434.7 $1,323.9 $123.7 $248.7 $2,963.2 $1,342.6 $166.3 $60.2 $196.8 $2,009.4 

Commercial banks ............................................... 7,075.2 1,323.9 123.4 247.9 2,762.3 377.2 119.0 46.1 166.5 1,908.9 

Savings institutions .............................................. 1,359.5 0.0 0.3 0.8 200.9 965.3 47.3 14.1 30.3 100.5 

Total deposits (in billions) ....................................... 5,568.6 753.6 102.6 82.7 2,151.0 829.8 82.8 43.7 161.9 1,360.7 

Commercial banks ............................................... 4,689.5 753.6 102.4 82.2 2,013.0 219.9 52.8 33.5 137.9 1,294.3 

Savings institutions .............................................. 879.1 0.0 0.2 0.4 138.0 609.8 30.0 10.2 24.0 66.4 

Net income (in millions) .......................................... 105,353 10,522 1,486 8,581 36,791 16,950 2,125 749 2,177 25,973 

Commercial banks ............................................... 90,110 10,522 1,483 8,550 34,283 5,850 1,721 728 1,956 25,018 

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

Performance Ratios (annualized, %) 

15,243 0 3 32 2,508 11,099 404 21 221 955 

Yield on earning assets .......................................... 6.15 5.80 6.70 11.96 6.32 5.86 7.28 5.85 6.55 5.43 

Cost of funding earning assets ............................... 2.19 2.40 2.54 2.86 2.12 2.47 2.59 2.45 2.44 1.79 

Net interest margin .............................................. 3.96 3.40 4.17 9.10 4.20 3.39 4.69 3.40 4.12 3.64 

Noninterest income to assets ................................. 2.26 3.15 0.65 12.28 1.64 1.09 2.40 6.44 0.89 2.22 

Noninterest expense to assets ............................... 3.26 3.71 2.73 9.48 3.05 2.36 3.58 7.70 2.94 2.97 

Loan and lease loss provision to assets ................. 0.64 0.93 0.24 4.95 0.52 0.17 1.19 0.27 0.26 0.43 

Net operating income to assets .............................. 1.21 0.76 1.22 3.58 1.24 1.05 1.21 0.95 1.12 1.26 

Pretax return on assets .......................................... 1.95 1.33 1.55 5.67 1.90 2.04 2.14 1.72 1.51 1.98 

Return on assets .................................................... 1.31 0.85 1.24 3.60 1.30 1.32 1.35 1.09 1.15 1.33 

Return on equity ..................................................... 14.17 11.09 11.58 24.54 13.91 14.69 18.49 6.32 10.85 14.63 

Net charge-offs to loans and leases ....................... 0.97 1.89 0.29 6.31 0.65 0.20 1.07 1.36 0.35 0.81 

Loan and lease loss provision to net charge-offs ... 109.39 114.04 133.21 98.35 117.78 127.27 142.96 56.24 127.58 98.95 

Efficiency ratio ........................................................ 56.00 62.38 60.50 45.31 55.42 56.15 53.23 80.46 62.37 55.19 

% of unprofitable institutions ................................... 6.29 16.67 2.63 5.13 8.33 4.68 4.10 12.91 4.79 2.02 

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

Condition Ratios(%) 

74.17 50.00 68.07 74.36 76.98 81.53 80.00 54.71 74.13 74.75 

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

Loss allowance to: 

86.44 79.50 91.60 86.62 89.12 90.22 91.20 87.66 91.74 83.27 

Loans and leases ................................................ 1.68 2.45 1.49 4.90 1.60 0.77 1.59 1.72 1.37 1.66 

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

Noncurrent assets plus 

123.72 89.81 125.27 227.25 139.73 80.52 108.14 108.46 135.89 129.61 

other real estate owned to assets ........................ 0.90 1.19 0.85 1.79 0.87 0.71 1.29 0.59 0.70 0.75 

Equity capital ratio .................................................. 9.21 7.52 10.76 15.18 9.39 9.09 7.35 17.19 10.62 9.07 

Core capital (leverage) ratio ................................... 7.87 6.69 10.11 14.87 8.12 7.53 7.42 15.11 9.82 7.13 

Tier 1 risk-based capital ratio ................................. 10.43 9.37 14.72 12.35 9.84 12.78 10.35 33.33 16.15 9.32 

Total risk-based capital ratio ................................... 13.00 12.81 15.85 14.56 12.13 14.40 13.23 34.51 17.33 12.57 

Net loans and leases to deposits ............................ 89.29 71.39 72.86 227.94 91.77 105.34 158.24 35.90 68.20 78.34 

Net loans to total assets ......................................... 58.95 40.64 60.43 75.76 66.62 65.10 78.75 26.09 56.09 53.05 

Domestic deposits to total assets ........................... 

Structural Changes 

58.22 26.32 82.94 30.02 70.21 60.77 49.77 71.64 82.08 59.77 

New Charters ....................................................... 94 0 4 0 29 1 2 56 2 0 

Institutions absorbed by mergers ........................ 336 0 26 2 218 37 1 1 31 20 

Failed Institutions ................................................. 

PRIOR FULL YEARS

 (The way it was...) 

11 0 1 1 7 1 0 0 1 0 

Number of institutions ..............................2001 9,613 5 1,875 56 3,968 1,242 229 476 1,661 101

 .............................................. 1999 10,221 8 2,113 63 3,784 1,356 304 562 1,942 89

 .............................................. 1997 10,922 11 2,377 73 3,437 1,615 338 611 2,365 95 

Total assets (in billions) ............................2001 $7,868.4 $1,176.3 $120.1 $335.2 $3,538.3 $1,178.7 $140.8 $49.7 $202.7 $1,126.7

 .............................................. 1999 6,883.6 1,179.2 121.2 254.2 3,392.4 1,045.4 100.6 56.2 225.4 509.1

 .............................................. 1997 6,041.0 1,383.2 120.4 213.2 2,019.1 966.9 117.8 65.0 279.5 876.1 

Return on assets (%) ...............................2001 1.14 0.84 1.12 2.94 1.11 1.05 1.29 1.84 1.04 1.09

 .............................................. 1999 1.25 0.93 1.18 3.51 1.27 1.03 1.36 1.67 1.27 1.26

 .............................................. 1997 1.18 0.93 1.25 2.07 1.31 0.96 1.27 1.66 1.23 1.23 

Net charge-offs to loans & leases (%) ......2001 0.83 0.88 0.36 4.53 0.68 0.19 1.39 0.48 0.33 0.75

 .............................................. 1999 0.53 0.62 0.28 3.84 0.40 0.12 0.62 1.32 0.26 0.46

 .............................................. 1997 

Noncurrent assets plus

0.57 0.25 0.23 4.70 0.38 0.18 0.97 0.30 0.29 0.56 

OREO to assets ..................................2001 0.88 1.00 0.81 1.53 0.93 0.65 1.30 0.31 0.66 0.64

 .............................................. 1999 0.63 0.66 0.72 1.55 0.59 0.47 1.06 0.30 0.54 0.60

 .............................................. 1997 0.71 0.56 0.68 1.80 0.74 0.76 1.01 0.37 0.58 0.58 

Equity capital ratio (%) ............................2001 8.99 7.51 10.47 13.13 9.47 8.25 7.60 17.46 10.38 7.95

 .............................................. 1999 8.35 6.48 10.13 13.02 8.50 7.90 8.80 14.87 9.88 8.29

 .............................................. 1997 8.39 6.45 10.72 12.75 8.78 8.47 8.96 14.11 10.16 8.04 

* See page 8 for explanations. 

FDIC Quarterly Banking Profile 

Fourth Quarter 2002 6 All FDIC-Insured Institutions 
 

 

 

 

 

TABLE III-A. Full Year 2002, All FDIC-Insured Institutions 

FULL YEAR

 (The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less than 

$100 Million 

$100 Million 

to $1 Billion 

$1 Billion to 

$10 Billion 

Greater than 

$10 Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

9,354 4,680 4,118 450 106 1,212 1,237 2,055 2,167 1,901 782 

Commercial Banks .............................................. 7,887 4,168 3,314 325 80 626 1,076 1,681 2,052 1,761 691 

Savings Institutions .............................................. 1,467 512 804 125 26 586 161 374 115 140 91 

Total assets (in billions) .......................................... $8,434.7 $237.8 $1,125.0 $1,278.3 $5,793.7 $2,892.8 $1,710.7 $1,571.1 $440.1 $581.6 $1,238.4 

Commercial Banks .............................................. 7,075.2 211.3 869.5 936.7 5,057.7 2,405.4 1,590.9 1,439.9 395.3 493.2 750.5 

Savings Institutions .............................................. 1,359.5 26.5 255.4 341.6 735.9 487.4 119.9 131.2 44.8 88.3 487.9 

Total deposits (in billions) ....................................... 5,568.7 199.4 901.1 862.5 3,605.6 1,824.7 1,175.5 1,036.3 292.6 438.3 801.3 

Commercial Banks .............................................. 4,689.5 178.3 707.1 639.6 3,164.5 1,494.1 1,093.0 938.2 265.3 386.5 512.4 

Savings Institutions .............................................. 879.1 21.1 194.1 222.9 441.0 330.5 82.5 98.1 27.3 51.7 288.9 

Net income (in millions) .......................................... 105,353 2,283 12,597 17,547 72,926 30,536 22,108 19,719 6,689 7,850 18,452 

Commercial Banks .............................................. 90,110 2,055 10,449 13,596 64,010 25,092 21,089 18,713 6,267 6,499 12,449 

Savings Institutions .............................................. 

Performance Ratios (annualized, %) 

15,243 228 2,148 3,951 8,916 5,444 1,019 1,006 422 1,350 6,003 

Yield on earning assets .......................................... 6.15 6.65 6.66 6.30 5.99 6.04 6.11 6.04 7.12 6.37 6.15 

Cost of funding earning assets ............................... 2.19 2.43 2.46 2.30 2.09 2.36 2.13 2.24 2.22 2.02 1.88 

Net interest margin .............................................. 3.96 4.21 4.20 4.00 3.89 3.68 3.98 3.80 4.90 4.35 4.27 

Noninterest income to assets ................................. 2.26 1.27 1.39 2.01 2.53 2.74 2.13 1.86 2.63 1.85 1.91 

Noninterest expense to assets ............................... 3.26 3.59 3.34 3.20 3.24 3.45 3.23 2.94 3.89 3.59 2.88 

Loan and lease loss provision to assets ................. 0.64 0.28 0.34 0.46 0.75 0.82 0.49 0.54 0.94 0.34 0.57 

Net operating income to assets .............................. 1.21 0.96 1.11 1.33 1.21 1.03 1.25 1.18 1.53 1.34 1.41 

Pretax return on assets .......................................... 1.95 1.32 1.64 2.16 1.99 1.69 1.95 1.92 2.31 1.95 2.49 

Return on assets .................................................... 1.31 1.00 1.17 1.45 1.31 1.11 1.34 1.30 1.59 1.42 1.58 

Return on equity ..................................................... 14.17 8.82 11.58 14.52 14.94 12.50 14.26 14.96 15.78 14.73 15.79 

Net charge-offs to loans and leases ....................... 0.97 0.32 0.40 0.68 1.18 1.45 0.71 0.77 1.19 0.43 0.81 

Loan and lease loss provision to net charge-offs ... 109.39 144.62 130.24 107.94 107.64 108.74 111.19 105.61 115.06 129.92 106.27 

Efficiency ratio ........................................................ 56.00 69.71 63.12 55.82 54.29 57.82 57.00 54.87 53.66 61.43 49.99 

% of unprofitable institutions ................................... 6.29 9.89 2.70 2.44 2.83 8.09 9.86 5.35 3.32 5.52 10.36 

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

Condition Ratios(%) 

74.17 68.27 80.04 80.67 79.25 77.39 78.50 76.98 70.10 71.12 73.66 

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

Loss Allowance to: 

86.44 91.59 91.74 90.38 84.33 84.53 84.61 88.51 90.39 89.64 87.92 

Loans and leases ................................................ 1.68 1.37 1.35 1.53 1.80 2.06 1.55 1.61 1.72 1.37 1.42 

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

Noncurrent assets plus 

123.72 123.19 143.48 152.82 116.80 109.90 134.66 119.63 163.81 123.92 144.63 

other real estate owned to assets ........................ 0.90 0.85 0.74 0.69 0.98 1.01 0.78 1.00 0.82 0.82 0.74 

Equity capital ratio .................................................. 9.21 11.29 10.06 10.07 8.77 8.85 9.38 8.60 10.33 9.60 9.98 

Core capital (leverage) ratio ................................... 7.87 10.84 9.41 8.93 7.20 7.63 7.64 7.71 9.43 8.45 8.13 

Tier 1 risk-based capital ratio ................................. 10.43 16.59 13.79 12.98 9.14 10.48 9.54 9.59 12.82 12.36 11.11 

Total risk-based capital ratio ................................... 13.00 17.70 14.96 14.71 12.17 13.26 12.25 12.50 14.19 13.89 13.41 

Net loans and leases to deposits ............................ 89.29 72.17 79.52 89.77 92.56 78.42 88.48 98.84 101.76 79.63 103.60 

Net loans to total assets ......................................... 58.95 60.53 63.70 60.57 57.60 49.46 60.80 65.19 67.67 60.01 67.03 

Domestic deposits to total assets ........................... 

Structural Changes 

58.22 83.87 79.99 66.64 51.08 46.74 64.21 61.43 65.18 75.12 62.26 

New Charters ............................................... 94 92 1 0 1 12 23 8 10 15 26 

Institutions absorbed by mergers ...................... 336 142 157 29 8 54 67 59 58 58 40 

Failed Institutions ............................................ 

PRIOR FULL YEARS

 (The way it was...) 

11 8 2 1 0 1 4 3 0 2 1 

Number of institutions ..............................2001 9,613 5,062 4,006 444 101 1,262 1,273 2,108 2,216 1,955 799

 .............................................. 1999 10,221 5,820 3,860 449 92 1,314 1,342 2,285 2,331 2,104 845

 .............................................. 1997 10,922 6,618 3,780 440 84 1,401 1,402 2,460 2,463 2,321 875 

Total assets (in billions) ............................2001 $7,868.4 $251.1 $1,071.2 $1,272.3 $5,273.8 $2,703.3 $1,586.7 $1,491.8 $406.8 $543.3 $1,136.4

 .............................................. 1999 6,883.6 276.1 999.6 1,277.4 4,330.5 2,393.5 1,480.7 1,140.2 431.0 560.3 877.8

 .............................................. 1997 6,041.0 307.8 978.2 1,250.0 3,505.1 2,236.7 896.5 979.0 368.6 571.5 988.8 

Return on assets (%) ...............................2001 1.14 0.85 1.09 1.26 1.14 1.01 1.09 1.08 1.42 1.25 1.47

 .............................................. 1999 1.25 0.96 1.22 1.38 1.24 1.20 1.26 1.23 1.42 1.22 1.36

 .............................................. 1997 1.18 1.12 1.24 1.27 1.14 1.11 1.18 1.22 1.40 1.24 1.19 

Net charge-offs to loans & leases (%) ......2001 0.83 0.32 0.35 0.83 0.96 1.02 0.75 0.79 0.80 0.43 0.81

 .............................................. 1999 0.53 0.34 0.30 0.56 0.60 0.67 0.45 0.34 0.70 0.40 0.63

 .............................................. 1997 

Noncurrent assets plus

0.57 0.25 0.30 0.89 0.54 0.64 0.48 0.45 0.75 0.38 0.64 

OREO to assets ..................................2001 0.88 0.81 0.70 0.72 0.95 0.89 0.86 1.01 0.77 0.79 0.76

 .............................................. 1999 0.63 0.65 0.57 0.62 0.64 0.70 0.58 0.57 0.59 0.63 0.60

 .............................................. 1997 0.71 0.73 0.70 0.87 0.65 0.79 0.59 0.60 0.68 0.61 0.81 

Equity capital ratio (%) ............................2001 8.99 11.06 9.85 9.49 8.59 8.76 9.62 8.49 8.92 9.38 9.12

 .............................................. 1999 8.35 10.90 9.51 8.93 7.74 8.00 8.62 8.10 8.92 8.47 8.79

 .............................................. 1997 8.39 10.95 9.84 9.02 7.54 7.68 8.89 8.50 9.10 8.73 8.99 

* See page 9 for explanations. 

FDIC Quarterly Banking Profile 

Fourth Quarter 2002 7 All FDIC-Insured Institutions 
 

TABLE IV-A. Fourth Quarter 2002, All FDIC-Insured Institutions 

FOURTH QUARTER

 (The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

International 

Banks 

Agricultural 

Banks 

Credit Card 

Lenders 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

9,354 6 1,823 39 4,071 1,110 195 488 1,523 99 

Commercial banks .............................................. 7,887 6 1,819 38 3,739 257 150 422 1,376 80 

Savings institutions ............................................. 1,467 0 4 1 332 853 45 66 147 19 

Total assets (in billions) ......................................... $8,434.7 $1,323.9 $123.7 $248.7 $2,963.2 $1,342.6 $166.3 $60.2 $196.8 $2,009.4 

Commercial banks .............................................. 7,075.2 1,323.9 123.4 247.9 2,762.3 377.2 119.0 46.1 166.5 1,908.9 

Savings institutions ............................................. 1,359.5 0.0 0.3 0.8 200.9 965.3 47.3 14.1 30.3 100.5 

Total deposits (in billions) ...................................... 5,568.6 753.6 102.6 82.7 2,151.0 829.8 82.8 43.7 161.9 1,360.7 

Commercial banks .............................................. 4,689.5 753.6 102.4 82.2 2,013.0 219.9 52.8 33.5 137.9 1,294.3 

Savings institutions ............................................. 879.1 0.0 0.2 0.4 138.0 609.8 30.0 10.2 24.0 66.4 

Net income (in millions) .......................................... 25,643 1,857 314 2,256 9,530 4,612 592 -128 506 6,106 

Commercial banks .............................................. 21,657 1,857 313 2,248 8,804 1,549 453 138 453 5,842 

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

Performance Ratios (annualized, %) 

3,986 0 1 8 726 3,063 139 -266 52 264 

Yield on earning assets .......................................... 5.90 5.34 6.51 11.72 6.07 5.72 7.09 4.97 6.30 5.22 

Cost of funding earning assets .............................. 1.98 1.96 2.33 2.66 1.93 2.34 2.35 2.21 2.22 1.66 

Net interest margin .............................................. 3.92 3.39 4.17 9.07 4.14 3.38 4.74 2.76 4.08 3.56 

Noninterest income to earning assets .................... 2.24 2.94 0.69 11.80 1.69 1.17 2.33 5.64 0.96 2.21 

Noninterest expense to earning assets .................. 3.35 3.98 2.98 9.32 3.09 2.48 3.45 9.29 3.07 3.02 

Loan and lease loss provision to assets ................ 0.66 0.96 0.29 4.66 0.54 0.15 1.05 0.07 0.31 0.51 

Net operating income to assets ............................. 1.09 0.42 1.01 3.63 1.22 1.03 1.36 -0.53 1.01 1.13 

Pretax return on assets .......................................... 1.82 0.93 1.27 5.81 1.87 2.14 2.24 -1.69 1.36 1.79 

Return on assets .................................................... 1.23 0.57 1.03 3.69 1.30 1.39 1.42 -0.79 1.04 1.22 

Return on equity ..................................................... 13.30 7.54 9.43 24.25 13.82 15.24 19.30 -4.61 9.70 13.47 

Net charge-offs to loans and leases ...................... 0.97 1.87 0.44 5.47 0.65 0.29 1.14 2.33 0.49 0.90 

Loan and lease loss provision to net charge-offs ... 112.17 122.24 107.86 105.71 123.31 81.94 117.98 10.79 110.64 105.66 

Efficiency ratio ........................................................ 58.42 69.54 65.74 45.45 56.25 58.06 51.55 111.67 64.75 57.16 

% of unprofitable institutions .................................. 10.28 33.33 13.00 15.38 9.36 7.21 8.72 20.90 8.80 3.03 

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

Structural Changes 

63.14 50.00 55.07 64.10 70.15 64.41 63.08 46.31 59.09 54.55 

New Charters ...................................................... 28 0 1 0 7 1 0 17 2 0 

Institutions absorbed by mergers ........................ 84 0 4 0 58 6 0 1 8 7 

Failed Institutions ................................................ 

PRIOR FOURTH QUARTERS

 (The way it was...) 

2 0 1 0 1 0 0 0 0 0 

Return on assets (%) ...............................2001 1.12 0.63 0.95 2.93 1.03 0.97 1.80 1.67 1.03 1.54

 .............................................. 1999 1.21 1.02 1.02 2.98 1.22 0.99 1.31 2.44 1.05 1.14

 .............................................. 1997 1.18 0.90 1.06 2.51 1.36 0.95 1.08 1.57 1.15 1.18 

Net charge-offs to loans & leases (%) ......2001 1.14 1.60 0.54 5.54 0.95 0.23 1.90 0.69 0.48 0.99

 .............................................. 1999 0.61 0.77 0.46 3.78 0.48 0.13 0.71 0.87 0.39 0.56

 .............................................. 1997 0.61 0.26 0.36 5.15 0.44 0.17 0.84 0.42 0.38 0.55 

*Asset Concentration Group Definitions (Groups are hierarchical and mutually exclusive): 

International Banks - Banks with assets greater than $10 billion and more than 25 percent of total assets in foreign offices.
 

Agricultural Banks - Banks whose agricultural production loans plus real estate loans secured by farmland exceed 25 percent of total loans and leases.
 

Credit-card Lenders - Institutions whose credit-card loans plus securitized receivables exceed 50 percent of total assets plus securitized receivables.
 

Commercial Lenders - Institutions whose commercial and industrial loans, plus real estate construction and development loans, plus loans
 

secured by commercial real estate properties exceed 25 percent of total assets. 

Mortgage Lenders - Institutions whose residential mortgage loans, plus mortgage-backed securities, exceed 50 percent of total assets. 

Consumer Lenders - Institutions whose residential mortgage loans, plus credit-card loans, plus other loans to individuals, exceed 50 percent of total assets. 

Other Specialized < $1 Billion - Institutions with assets less than $1 billion, whose loans and leases are less than 40 percent of total assets. 

All Other < $1 billion - Institutions with assets less than $1 billion that do not meet any of the definitions above, they have significant lending 

activity with no identified asset concentrations. 

All Other > $1 billion - Institutions with assets greater than $1 billion that do not meet any of the definitions above, they have significant lending 

activity with no identified asset concentrations. 

FDIC Quarterly Banking Profile 

Fourth Quarter 2002 8 All FDIC-Insured Institutions 
 

 

 

TABLE IV-A. Fourth Quarter 2002, All FDIC-Insured Institutions 

FOURTH QUARTER

 (The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less than 

$100 Million 

$100 Million 

to $1 Billion 

$1 Billion to 

$10 Billion 

Greater than 

$10 Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

9,354 4,680 4,118 450 106 1,212 1,237 2,055 2,167 1,901 782 

Commercial Banks ....................................... 7,887 4,168 3,314 325 80 626 1,076 1,681 2,052 1,761 691 

Savings Institutions ...................................... 1,467 512 804 125 26 586 161 374 115 140 91 

Total assets (in billions) ......................................... $8,434.7 $237.8 $1,125.0 $1,278.3 $5,793.7 $2,892.8 $1,710.7 $1,571.1 $440.1 $581.6 $1,238.4 

Commercial Banks ....................................... 7,075.2 211.3 869.5 936.7 5,057.7 2,405.4 1,590.9 1,439.9 395.3 493.2 750.5 

Savings Institutions ....................................... 1,359.5 26.5 255.4 341.6 735.9 487.4 119.9 131.2 44.8 88.3 487.9 

Total deposits (in billions) ...................................... 5,568.7 199.4 901.1 862.5 3,605.6 1,824.7 1,175.5 1,036.3 292.6 438.3 801.3 

Commercial Banks ....................................... 4,689.5 178.3 707.1 639.6 3,164.5 1,494.1 1,093.0 938.2 265.3 386.5 512.4 

Savings Institutions ....................................... 879.1 21.1 194.1 222.9 441.0­ 330.5 82.5 98.1 27.3 51.7 288.9 

Net income (in millions) ......................................... 25,643 511 2,844 4,681 17,607 6,758 5,439 4,704 1,718 1,985 5,039 

Commercial Banks ...................................... 21,657 451 2,540 3,548 15,118 5,258 5,091 4,686 1,600 1,593 3,428 

Savings Institutions ........................................ 

Performance Ratios (annualized, %) 

3,986 59 305 2,488 1,133 1,499 349 18 118 392 1,610 

Yield on earning assets ......................................... 5.90 6.46 6.40 5.99 5.75 5.67 5.91 5.79 6.96 6.12 6.06 

Cost of funding earning assets .............................. 1.98 2.23 2.26 2.10 1.89 2.06 1.98 2.05 2.05 1.84 1.77 

Net interest margin ............................................. 3.92 4.23 4.14 3.89 3.86 3.61 3.93 3.74 4.92 4.28 4.29 

Noninterest income to earning assets ................... 2.24 1.32 1.38 2.08 2.47 2.62 2.12 1.79 2.68 2.02 2.03 

Noninterest expense to earning assets ................. 3.35 3.77 3.49 3.21 3.34 3.58 3.31 2.95 3.97 3.74 2.97 

Loan and lease loss provision to assets ................ 0.66 0.35 0.39 0.44 0.77 0.81 0.53 0.56 0.96 0.38 0.59 

Net operating income to assets ............................. 1.09 0.82 0.97 1.32 1.08 0.82 1.15 1.08 1.50 1.26 1.44 

Pretax return on assets ......................................... 1.82 1.14 1.37 2.20 1.85 1.46 1.79 1.76 2.32 1.89 2.58 

Return on assets ................................................... 1.23 0.87 1.02 1.49 1.23 0.95 1.28 1.20 1.58 1.38 1.66 

Return on equity .................................................... 13.30 7.63 10.07 14.76 13.95 10.65 13.58 13.95 15.31 14.26 16.54 

Net charge-offs to loans and leases ...................... 0.97 0.45 0.53 0.64 1.17 1.36 0.79 0.79 1.20 0.54 0.86 

Loan and lease loss provision to net charge-offs .. 112.17 126.05 116.33 111.53 111.63 118.07 107.75 107.90 115.28 116.78 103.01 

Efficiency ratio ....................................................... 58.42 72.39 66.62 56.43 56.88 61.99 59.39 56.54 54.39 63.27 50.52 

% of unprofitable institutions ................................. 10.28 16.18 4.54 3.11 3.77 9.57 11.32 8.03 10.66 11.68 11.25 

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

Structural Changes 

63.14 58.03 67.70 72.44 71.70 66.09 67.58 64.28 57.59 60.55 70.20 

New Charters ............................................... 28 27 0 0 1 5 3 5 3 4 8 

Institutions absorbed by mergers ................... 84 38 35 9 2 14 18 15 16 11 10 

Failed Institutions ......................................... 

PRIOR FOURTH QUARTERS

 (The way it was...) 

2 2 0 0 0 0 0 0 0 2 0 

Return on assets (%) ...............................2001 1.12 0.64 1.05 1.37 1.10 0.69 1.38 1.21 1.58 1.26 1.50

 .............................................. 1999 1.21 0.79 1.16 1.33 1.21 1.18 1.26 1.18 1.38 1.11 1.24

 .............................................. 1997 1.18 0.94 1.16 1.41 1.13 1.11 1.00 1.24 1.51 1.22 1.30 

Net charge-offs to loans & leases (%) ......2001 1.14 0.52 0.50 1.17 1.31 1.63 0.93 0.96 1.25 0.58 0.94

 .............................................. 1999 0.61 0.39 0.39 0.65 0.67 0.75 0.58 0.38 0.74 0.53 0.65

 .............................................. 1997 0.61 0.39 0.40 0.98 0.54 0.70 0.55 0.48 0.76 0.50 0.61 

*Regions: 

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

Rhode Island, Vermont, U.S. Virgin Islands 

Atlanta - Alabama, Florida, Georgia, North Carolina, South Carolina, Virginia, West Virginia 

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

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

Dallas - Arkansas, Colorado, Louisiana, Mississippi, New Mexico, Oklahoma, Tennessee, Texas 

San Francisco - Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Pacific Islands, Utah, Washington, Wyoming 

FDIC Quarterly Banking Profile 

Fourth Quarter 2002 9 All FDIC-Insured Institutions 
TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

December 31, 2002 

Percent of Loans 30-89 Days Past Due 

All Insured 

Institutions 

Asset Concentration Groups* 

International 

Banks 

Agricultural 

Banks 

Credit Card 

Lenders 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

All loans secured by real estate ........................................ 1.04 1.78 1.36 1.11 0.90 1.04 1.34 1.27 1.61 1.07 

Construction and development ...................................... 0.93 3.53 1.60 0.75 0.91 1.14 1.92 1.55 1.45 0.63 

Commercial real estate .................................................. 0.68 0.51 1.27 0.16 0.68 0.59 0.77 0.69 1.15 0.61 

Multifamily residential real estate .................................. 0.33 0.29 0.90 0.30 0.36 0.14 0.51 0.83 0.87 0.56 

Home equity loans ......................................................... 0.53 0.60 0.57 0.75 0.51 0.30 0.86 0.51 0.68 0.65 

Other 1-4 Family residential .......................................... 1.35 2.06 1.96 2.62 1.33 1.19 1.62 1.64 1.91 1.36 

Commercial and industrial loans ...................................... 0.91 0.63 1.87 2.45 1.03 1.07 1.78 1.25 1.85 0.69 

Loans to individuals .......................................................... 2.20 2.26 2.50 2.78 1.96 1.82 2.24 2.07 2.50 1.67 

Credit card loans ........................................................... 2.70 2.82 1.72 2.82 2.30 1.53 2.41 2.48 2.53 1.60 

Other loans to individuals .............................................. 1.90 1.74 2.52 1.89 1.92 1.85 2.22 2.05 2.49 1.68 

All other loans and leases (including farm) ....................... 0.59 0.56 0.92 0.01 0.89 0.50 2.70 0.65 0.96 0.27 

Total loans and leases ...................................................... 

Percent of Loans Noncurrent** 

1.15 1.31 1.42 2.61 1.02 1.07 1.89 1.36 1.73 0.93 

All real estate loans .......................................................... 0.89 1.50 1.09 0.60 0.84 0.94 1.29 1.67 0.94 0.76 

Construction and development ...................................... 1.07 3.08 1.52 0.25 0.92 1.76 1.63 3.04 1.02 1.16 

Commercial real estate .................................................. 0.97 1.01 1.35 0.14 0.89 1.03 1.17 2.90 1.26 1.13 

Multifamily residential real estate .................................. 0.32 1.35 0.86 0.00 0.35 0.15 0.52 0.30 0.76 0.39 

Home equity loans ......................................................... 0.27 0.19 0.38 0.39 0.26 0.14 0.73 0.25 0.29 0.31 

Other 1-4 Family residential .......................................... 0.93 1.30 0.87 1.51 0.94 1.01 1.51 1.06 0.82 0.65 

Commercial and industrial loans ...................................... 2.88 5.32 1.86 1.83 2.13 1.78 2.78 2.82 1.62 3.07 

Loans to individuals .......................................................... 1.44 2.22 0.81 2.33 0.76 0.61 1.40 0.72 0.85 0.59 

Credit card loans ........................................................... 2.20 2.18 1.04 2.38 1.72 0.98 1.70 1.25 1.90 1.40 

Other loans to individuals .............................................. 0.97 2.26 0.80 0.88 0.64 0.56 1.35 0.70 0.79 0.49 

All other loans and leases (including farm) ....................... 0.99 1.27 1.14 0.01 1.05 0.74 2.92 0.40 1.02 0.74 

Total loans and leases ...................................................... 

Percent of Loans Charged-off (net, YTD) 

1.36 2.72 1.19 2.16 1.15 0.95 1.47 1.58 1.00 1.28 

All real estate loans .......................................................... 0.13 0.15 0.08 0.23 0.14 0.07 0.41 0.41 0.08 0.15 

Construction and development ...................................... 0.16 -0.14 0.16 0.33 0.15 0.13 0.33 0.48 0.17 0.22 

Commercial real estate .................................................. 0.14 -0.31 0.16 1.10 0.15 0.20 0.08 0.17 0.11 0.09 

Multifamily residential real estate .................................. 0.04 0.57 0.00 0.00 0.04 0.00 0.75 0.04 0.06 0.07 

Home equity loans ......................................................... 0.17 0.06 0.05 0.07 0.15 0.08 0.60 0.31 0.08 0.25 

Other 1-4 Family residential .......................................... 0.11 0.09 0.08 0.19 0.14 0.06 0.41 0.51 0.07 0.16 

Commercial and industrial loans ...................................... 1.75 2.23 0.76 5.98 1.46 1.61 2.00 1.53 0.83 1.96 

Loans to individuals .......................................................... 3.21 4.18 0.71 6.92 1.56 1.23 1.38 3.56 1.12 1.51 

Credit card loans ........................................................... 6.22 5.53 3.82 7.06 4.88 2.97 4.28 3.02 5.31 4.18 

Other loans to individuals .............................................. 1.44 3.06 0.61 3.16 1.14 1.04 0.89 4.00 0.89 1.20 

All other loans and leases (including farm) ....................... 0.58 0.61 0.00 0.00 0.85 0.36 1.07 0.44 0.39 

Total loans and leases ...................................................... 

Loans Outstanding (in billions) 

0.97 1.89 0.29 6.31 0.65 0.20 1.07 1.36 0.35 0.81 

All real estate loans .......................................................... $2,849.6 $117.5 $38.1 $9.3 $1,210.1 $786.2 $47.9 $10.0 $76.7 $553.9 

Construction and development ...................................... 244.9 1.7 1.7 0.2 174.2 21.6 2.0 0.8 4.1 38.6 

Commercial real estate .................................................. 628.2 6.0 8.4 0.3 427.9 48.6 6.3 2.9 18.0 109.9 

Multifamily residential real estate .................................. 134.2 1.1 0.6 0.1 77.5 38.4 0.6 0.3 1.6 14.1 

Home equity loans ......................................................... 256.4 7.7 0.5 6.8 115.5 49.1 10.6 0.5 2.9 62.9 

Other 1-4 Family residential .......................................... 1,513.3 76.2 13.4 1.9 397.4 627.6 28.2 5.3 45.8 317.5 

Commercial and industrial loans ...................................... 953.9 155.3 11.0 7.2 464.7 37.3 8.5 2.2 12.2 255.6 

Loans to individuals .......................................................... 772.4 153.3 6.8 175.6 182.8 42.0 74.8 2.7 17.2 117.2 

Credit card loans ........................................................... 291.5 74.7 0.2 169.2 20.5 4.2 9.9 0.1 0.9 11.8 

Other loans to individuals .............................................. 480.9 78.6 6.6 6.4 162.3 37.8 64.9 2.6 16.3 105.4 

All other loans and leases (including farm) ....................... 485.0 127.4 20.1 6.2 149.6 15.4 1.9 1.1 6.1 157.5 

Total loans and leases ...................................................... 

Memo: Other Real Estate Owned (in millions) 

5,060.9 553.4 75.9 198.2 2,007.2 880.9 133.1 16.0 112.1 1,084.1 

All other real estate owned ............................................... 5,249.9 293.3 142.7 10.2 2,443.0 1,083.9 188.9 90.2 223.5 774.1 

Construction and development ...................................... 581.7 0.0 12.0 0.0 368.5 147.7 1.2 0.9 22.5 28.9 

Commercial real estate .................................................. 1,992.9 96.0 56.5 0.9 1,089.7 121.8 9.6 82.9 87.1 448.5 

Multifamily residential real estate .................................. 107.0 6.0 3.4 0.0 78.8 5.2 0.2 2.4 7.1 3.8 

1-4 Family residential..................................................... 2,382.9 110.3 36.2 9.3 858.8 807.6 176.2 13.9 95.2 275.4 

Farmland ....................................................................... 95.9 0.0 34.6 0.0 44.0 2.4 2.2 0.7 10.5 1.5 

* See page 8 for explanations.
 

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

FDIC Quarterly Banking Profile 

Fourth Quarter 2002 10 All FDIC-Insured Institutions 
TABLE V-A. Loan Performances, All FDIC-Insured Institutions 

December 31, 2002 

Percent of Loans 30-89 Days Past Due 

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less than 

$100 Million 

$100 Million 

to $1 Billion 

$1 Billion to 

$10 Billion 

Greater than 

$10 Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

All loans secured by real estate ................................ 1.04 1.53 1.06 0.84 1.07 1.09 0.90 1.30 0.92 1.22 0.86 

Construction and development ............................... 0.93 1.25 0.99 0.95 0.87 1.00 0.61 1.25 0.93 1.03 0.89 

Commercial real estate .......................................... 0.68 1.09 0.73 0.69 0.60 0.70 0.57 0.86 0.72 0.87 0.42 

Multifamily residential real estate ........................... 0.33 0.79 0.47 0.30 0.29 0.30 0.36 0.58 0.38 0.83 0.13 

Home equity loans .................................................. 0.53 0.60 0.50 0.46 0.55 0.47 0.55 0.61 0.56 0.59 0.42 

Other 1-4 Family residential ................................... 1.35 2.04 1.47 1.02 1.37 1.33 1.23 1.79 1.09 1.64 1.11 

Commercial and industrial loans ............................... 0.91 1.70 1.34 1.32 0.76 0.81 0.62 1.11 1.34 1.15 1.08 

Loans to individuals ................................................... 2.20 2.82 2.27 2.08 2.20 2.32 2.24 1.89 2.46 1.94 2.08 

Credit card loans .................................................... 2.70 1.95 3.99 2.70 2.66 2.82 4.31 2.04 2.76 1.05 2.15 

Other loans to individuals ....................................... 1.90 2.84 2.04 1.82 1.85 1.88 1.86 1.86 1.86 2.10 1.99 

All other loans and leases (including farm) ............... 0.59 0.93 0.78 0.66 0.55 0.56 0.28 0.77 0.88 0.85 0.50 

Total loans and leases .............................................. 

Percent of Loans Noncurrent* 

1.15 1.63 1.19 1.07 1.14 1.22 0.95 1.26 1.34 1.28 1.02 

All real estate loans ................................................... 0.89 1.00 0.83 0.84 0.93 0.90 0.68 1.23 0.63 1.06 0.79 

Construction and development ............................... 1.07 1.11 1.03 1.13 1.05 1.09 0.83 1.26 0.84 0.98 1.37 

Commercial real estate .......................................... 0.97 1.10 0.91 0.97 1.01 0.89 0.82 1.30 0.87 1.19 0.77 

Multifamily residential real estate ........................... 0.32 0.70 0.39 0.45 0.22 0.21 0.30 0.50 0.36 1.73 0.09 

Home equity loans .................................................. 0.27 0.27 0.21 0.23 0.29 0.22 0.23 0.39 0.23 0.26 0.19 

Other 1-4 Family residential ................................... 0.93 0.94 0.79 0.80 1.00 0.89 0.68 1.47 0.49 1.04 0.86 

Commercial and industrial loans ............................... 2.88 1.62 1.48 1.80 3.31 4.06 2.74 2.36 1.37 1.56 2.02 

Loans to individuals ................................................... 1.44 1.02 0.92 1.01 1.58 2.03 0.94 0.70 1.81 0.69 1.15 

Credit card loans .................................................... 2.20 1.33 3.09 1.98 2.20 2.41 2.73 1.46 2.28 0.80 1.78 

Other loans to individuals ....................................... 0.97 1.02 0.63 0.60 1.11 1.70 0.62 0.57 0.86 0.67 0.40 

All other loans and leases (including farm) ............... 0.99 1.17 1.07 0.72 1.01 1.22 0.93 0.71 0.97 1.25 0.84 

Total loans and leases .............................................. 

Percent of Loans Charged-off (net, YTD) 

1.36 1.11 0.94 1.00 1.54 1.87 1.15 1.35 1.05 1.11 0.98 

All real estate loans ................................................... 0.13 0.09 0.10 0.11 0.14 0.07 0.11 0.27 0.10 0.14 0.07 

Construction and development ............................... 0.16 0.14 0.16 0.20 0.14 0.09 0.12 0.27 0.19 0.11 0.16 

Commercial real estate .......................................... 0.14 0.11 0.11 0.14 0.16 0.04 0.09 0.30 0.17 0.16 0.08 

Multifamily residential real estate ........................... 0.04 0.03 0.04 0.05 0.04 0.03 0.02 0.11 0.08 0.15 0.00 

Home equity loans .................................................. 0.17 0.08 0.05 0.14 0.20 0.07 0.15 0.33 0.12 0.19 0.05 

Other 1-4 Family residential ................................... 0.11 0.08 0.08 0.08 0.13 0.05 0.11 0.26 0.06 0.14 0.07 

Commercial and industrial loans ............................... 1.75 0.81 0.95 1.26 1.97 2.09 1.79 1.45 0.86 0.91 2.12 

Loans to individuals ................................................... 3.21 0.95 1.85 2.78 3.52 4.20 1.84 1.94 4.23 1.15 3.79 

Credit card loans .................................................... 6.22 3.54 6.35 6.56 6.17 7.02 5.62 4.65 6.24 2.09 5.51 

Other loans to individuals ....................................... 1.44 0.88 1.07 1.05 1.63 1.85 1.14 1.43 0.64 1.00 1.63 

All other loans and leases (including farm) ............... 0.58 0.29 0.48 0.47 0.61 0.62 0.38 0.71 0.27 0.49 0.74 

Total loans and leases .............................................. 

Loans Outstanding (in billions) 

0.97 0.32 0.40 0.68 1.18 1.45 0.71 0.77 1.19 0.43 0.81 

All real estate loans ................................................... $2,849.6 $92.7 $530.3 $522.3 $1,704.3 $647.6 $622.6 $585.2 $157.8 $231.8 604.67 

Construction and development ............................... 244.9 8.4 60.2 56.9 119.4 29.8 71.4 56.5 13.8 35.2 38.27 

Commercial real estate .......................................... 628.2 25.0 177.8 145.1 280.3 124.5 154.3 138.5 39.2 68.0 103.67 

Multifamily residential real estate ........................... 134.2 2.2 23.0 33.2 75.9 34.4 17.1 25.5 4.8 6.6 45.84 

Home equity loans .................................................. 256.4 2.8 27.1 32.8 193.6 55.9 63.0 75.9 7.7 15.1 38.80 

Other 1-4 Family residential ................................... 1,513.3 44.2 225.4 249.0 994.6 371.4 308.4 278.9 80.5 99.9 374.04 

Commercial and industrial loans ............................... 953.9 22.4 103.6 120.8 707.2 318.2 212.0 217.5 43.4 61.0 $101.9 

Loans to individuals ................................................... 772.4 15.9 64.0 104.3 588.2 308.2 129.4 115.2 72.6 45.3 101.7 

Credit card loans .................................................... 291.5 0.4 7.5 30.9 252.7 143.5 20.1 17.1 48.5 6.9 55.4 

Other loans to individuals ....................................... 480.9 15.5 56.5 73.5 335.5 164.8 109.3 98.1 24.1 38.4 46.3 

All other loans and leases (including farm) ............... 485.0 15.1 29.1 39.5 401.4 189.3 92.8 123.4 29.3 16.0 34.3 

Total loans and leases .............................................. 

Memo: Other Real Estate Owned (in millions) 

5,060.9 146.1 727.0 786.9 3,401.0 1,463.3 1,056.8 1,041.2 303.1 354.1 842.6 

All other real estate owned ........................................ 5,249.9 365.0 1,417.1 888.4 2,579.5 761.3 1,195.0 1,241.6 418.3 816.1 817.7 

Construction and development ............................... 581.7 39.6 235.5 118.0 188.5 43.3 154.3 86.8 63.1 127.3 106.8 

Commercial real estate .......................................... 1,992.9 147.5 650.3 387.4 807.6 296.4 625.2 308.2 177.2 320.6 265.2 

Multifamily residential real estate ........................... 107.0 11.4 46.8 23.2 25.6 13.0 9.7 24.7 14.9 32.2 12.4 

1-4 Family residential ............................................. 2,382.9 135.1 451.4 351.8 1,444.6 316.3 396.7 810.3 140.3 304.2 415.1 

Farmland ................................................................ 95.9 31.9 43.3 8.1 12.5 2.5 9.5 12.2 23.9 32.5 15.3 

* See page 9 for explanations.
 

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

FDIC Quarterly Banking Profile 

Fourth Quarter 2002 11 All FDIC-Insured Institutions 
FDIC Quarterly Banking Profile 

INSURANCE FUND INDICATORS FOURTH QUARTER 2002 

• BIF Reserve Ratio Rises 2 Basis Points To 1.27 Percent 

• BIF Unrealized Gains On Securities Total $566 Million In 2002 

• SAIF Reserve Ratio Declines 1 Basis Point 

•	 Full Year Insured Deposit Growth Second Largest In Last 

Sixteen Years 

•	 Eleven Insured Institutions Fail During Year, Largest Number 

Since 1994 

Deposits insured by the FDIC approached $3.4 trillion

in 2002, as the number of insured institutions (including IBAs) fell below 9,400 for the first time. Insured

deposits rose by 1.2 percent during the fourth quarter,

bringing the growth rate for the full year to 5.5 percent. Full year growth exceeded the previous year's

5.1 percent rise, and was the second largest increase in

sixteen years. Insured deposits at the 9,372 insured

institutions rose by $177 billion in 2002, including an

$8.3 billion (4.3 percent) increase in insured brokered

deposits. Among insured institutions that sweep cash

management funds from brokerage affiliates into

FDIC-insured accounts, insured brokered deposits

decreased by $235 million during the year. Since their

inception sweeps from brokerage affiliates of FDICinsured institutions have added $83.4 billion to the

amount of deposits insured by the FDIC. These

amounts have effectively reduced the BIF reserve ratio

by 4 basis points and the SAIF reserve ratio by one

basis point.

Deposits insured by the Bank Insurance Fund (BIF)

grew by 0.7 percent during the fourth quarter and by

4.9 percent for the full year, exceeding $2.5 trillion at

year-end. The balance of the BIF rose by $667 million

during the fourth quarter to $32.1 billion (unaudited)

on December 31, 2002. The lion's share of the

increase ($497 million) came from reducing reserves

previously set aside for estimated failure costs. This

was the largest quarterly increase in the fund since the

third quarter of 2000, when it increased by $775 million (boosted by a $423 million reversal of reserves for

estimated future losses). The BIF fund balance

increased by $1.6 billion during 2002, the largest calendar-year increase since the $3.6 billion increase in

1995. Unrealized gains on securities accounted for

$566 million or 35 percent of the rise. During the

fourth quarter, interest rate fluctuations caused the

BIF's unrealized gains on securities to decline from

$638 million to $566 million. During 2001, the BIF's

unrealized gains on securities increased by $26 million.

above September 30, 2002, and one basis point higher

than twelve months earlier (as of year-end 2002, the

BIF reserve ratio would change roughly one basis point

for every $250 million change in the BIF fund balance

or every $20 billion movement in the amount of

deposits insured by the BIF).

The reserve ratio of the Savings Association Insurance

Fund (SAIF) was 1.37 percent at year-end 2002, up

from 1.36 percent at year-end 2001. The balance of

the SAIF was $11.7 billion (unaudited) on December

31, 2002. SAIF insured deposits were $860 billion at

year-end, having grown 2.7 percent during the fourth

quarter and 7.4 percent for the full year. 

Two FDIC-insured institutions failed during the fourth

quarter of 2002; both were BIF member commercial

banks. At the time of failure these institutions had

$106 million in combined assets. For all of 2002, 11

FDIC-insured institutions failed-10 BIF-member

institutions with assets of $2.5 billion at an estimated

cost of $628 million and one SAIF-member institution

with assets of $50 million and an estimated cost of $1

million. Eleven failures is the largest number since

1994 when 15 insured institutions failed, 13 BIF members and two SAIF members. 

Chart 1 

Quarterly Percentage Change In Insurance
 

Fund Balances, 1999–2002
 

Percent Change (not annualized) 

2.6 2.5 2.3 2.1 2.0 1.6 1.6 1.5 1.5 1.4 1.4 1.4 1.3 1.1 1.1 1.0 1.0 1.0 0.8 0.8 0.9 0.9 0.9 0.7 0.6 0.5 0.1 0 -0.1 -0.3 

-1.1
 

-1.7
 

Bank Insurance Fund (BIF)
 

Savings Association
 

Insurance Fund (SAIF)
 

-4.4
 

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 On December 31, 2002 the reserve ratio for the Bank 1999 2000 2001 2002 

Insurance Fund was 1.27 percent, two basis points

FOURTH QUARTER 2002	 12 ALL FDIC-INSURED INSTITUTIONS 
 

1.25 

TABLE I-B. Selected Insurance Fund Indicators* 

(dollar figures in millions) Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

2002 2002 2001 01:4-02:4 

Bank Insurance Fund 

Reserve ratio (%)..................................................................... 1.27 1.25 1.26 0.8 

Fund balance........................................................................ $32,050 $31,383 $30,439 5.3 

Estimated insured deposits...................................................... 2,527,448 2,508,918 2,409,566 4.9 

SAIF-member Oakars............................................................ 92,805 90,071 69,309 33.9 

BIF-members........................................................................ 2,434,644 2,418,847 2,340,257 4.0 

Assessment base.................................................................. 3,867,096 3,764,891 3,584,000 7.9 

SAIF-member Oakars............................................................ 95,189 91,753 70,591 34.8 

BIF-members........................................................................ 3,771,907 3,673,137 3,513,409 7.4 

Savings Association Insurance Fund 

Reserve ratio (%)..................................................................... 1.37 1.38 1.36 0.8 

Fund balance........................................................................ $11,747 $11,586 $10,935 7.4 

Estimated insured deposits...................................................... 860,351 837,591 801,171 7.4 

BIF-member Oakars............................................................... 374,623 359,491 349,228 7.3 

SAIF-member Sassers......................................................... 91,753 93,013 70,026 31.0 

Other SAIF members............................................................ 393,975 385,087 381,917 3.2 

Assessment base.................................................................. 990,231 958,935 897,292 10.4 

BIF-member Oakars............................................................... 378,377 364,197 352,051 7.5 

SAIF-member Sassers......................................................... 112,855 113,805 88,977 26.8 

Other SAIF members............................................................ 498,999 480,932 456,265 9.4 

Insurance Fund Reserve Ratios* Fund Balances and Insured Deposits* 

Percent of Insured Deposits ($Millions) 

BIF BIF-Insured SAIF SAIF-Insured 

Balance Deposits Balance Deposits 

12/96 12/97 12/98 12/99 12/00 12/01 3/02 6/02 9/02 12/02 

1.34 

1.38 1.39 

1.37 

1.35 

1.26 

1.23 

1.25 1.25 

1.27 

1.31 

1.36 1.37 

1.43 1.43 

1.36 1.36 

1.38 1.38 1.37 

BIF 

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

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

12/98 26,612 2,134,425 9,840 716,029 

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

12/00 30,975 2,299,932 10,759 755,156 

Target 

Ratio 12/01 30,439 2,409,566 10,935 801,171 

3/02 30,697 2,485,809 11,049 812,769 

6/02 31,187 2,490,341 11,323 818,397 

9/02 31,383 2,508,918 11,586 837,591 

12/02 32,050 2,527,448 11,747 860,351 

* 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. Only year 

end fund balances are audited by GAO. Fund balances for the most recent period are unaudited. BIF-insured deposit totals 

include U.S. branches of foreign banks. 

TABLE II-B. Closed/Assisted Institutions 

(dollar figures in millions) 

BIF Members 

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

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

SAIF Members 

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

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

2002 2001 2000 1999 1998 1997 1996 

10 

$2,508 

3 

$54 

6 

$378 

7 

$1,490 

3 

$371 

1 

$27 

5 

$186 

1 

$50 

1 

$2,200 

1 

$30 

1 

$71 

0 

$0 

0 

$0 

1 

$34 

FDIC Quarterly Banking Profile 

Fourth Quarter 2002 13 All FDIC-Insured Institutions 
 

 

 

 

TABLE III-B. Selected Indicators, By Fund Membership* 

(dollar figures in millions) 2002 2001 2000 1999 1998 1997 1996 

BIF Members 

Number of institutions reporting................................................ 8,125 8,326 8,571 8,834 9,031 9,404 9,823 

BIF-member Oakars............................................................ 801 766 743 744 745 778 793 

Other BIF-members............................................................... 7,324 7,560 7,828 8,090 8,286 8,626 9,030 

Total assets...........................................................................$ 7,334,672 $6,856,659 $6,509,644 $5,980,072 $5,702,659 $5,285,302 $4,857,772 

Total deposits........................................................................ 4,854,901 4,567,547 4,337,665 3,987,339 3,843,778 3,611,387 3,404,204 

Net income........................................................................... 92,891 76,626 73,580 73,916 64,303 61,417 54,458 

Return on assets (%)............................................................... 1.33 1.14 1.18 1.29 1.18 1.22 1.17 

Return on equity (%)............................................................... 14.37 12.93 13.89 15.10 13.80 14.43 14.14 

Noncurrent assets plus OREO to assets (%)................................. 0.91 0.90 0.72 0.62 0.64 0.67 0.77 

Number of problem institutions................................................... 116 90 74 66 68 73 86 

Assets of problem institutions................................................... $32,176 $31,881 $10,787 $4,450 $5,326 $4,598 $6,624 

Number of failed/assisted institutions.......................................... 10 3 6 7 3 1 5 

Assets of failed/assisted institutions............................................. $2,508 $54 $378 $1,490 $371 $27 $182 

SAIF Members 

Number of institutions reporting................................................ 1,229 1,287 1,333 1,387 1,432 1,518 1,629 

SAIF-member Oakars............................................................ 133 130 123 123 116 112 94 

Other SAIF-members............................................................ 1,096 1,157 1,210 1,264 1,316 1,406 1,535 

Total assets...........................................................................$ 1,100,013 $1,011,736 $952,161 $903,532 $828,177 $755,724 $749,573 

Total deposits........................................................................ 713,752 621,823 577,100 550,703 542,481 514,409 520,855 

Net income........................................................................... 12,463 10,624 8,070 8,450 7,598 6,486 4,892 

Return on assets (%)............................................................... 1.17 1.11 0.89 0.99 0.98 0.94 0.67 

Return on equity (%)............................................................... 12.79 13.46 11.12 11.97 11.34 11.13 8.08 

Noncurrent assets plus OREO to assets (%)................................. 0.79 0.75 0.65 0.64 0.80 0.98 1.07 

Number of problem institutions................................................... 20 24 20 13 16 19 31 

Assets of problem institutions................................................... $6,751 $7,923 $13,053 $5,524 $5,992 $1,662 $5,548 

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

Assets of failed/assisted institutions............................................. $50 $2,200 $30 $71 $0 $0 $35 

* Excludes insured branches of foreign banks (IBAs). 

TABLE IV-B. Estimated FDIC-Insured Deposits by Fund Membership and Type of Institution 

(dollar figures in millions) 

Commercial Banks and Savings Institutions 

December 31, 2002 

Number of 

Institutions 

Total 

Assets 

Domestic 

Deposits* 

Estimated Insured Deposits 

BIF SAIF Total

FDIC-Insured Commercial Banks............................................. 7,887 7,075,212 4,031,486 2,277,676 391,203 2,668,878 

BIF-member..................................................................... 7,779 6,914,517 3,926,113 2,245,503 338,604 2,584,107 

SAIF-member.................................................................. 108 160,695 105,373 32,172 52,599 84,771 

FDIC-Supervised............................................................... 4,859 1,304,240 960,549 623,628 80,482 704,109 

OCC-Supervised............................................................... 2,078 3,908,098 2,168,905 1,211,723 226,915 1,438,638 

Federal Reserve-Supervised................................................ 950 1,862,875 902,032 442,325 83,806 526,131 

FDIC-Insured Savings Institutions............................................. 1,467 1,359,474 879,134 248,552 469,149 717,701 

OTS-Supervised Savings Institutions....................................... 974 1,012,646 632,558 108,265 405,373 513,638 

BIF-member..................................................................... 41 138,496 71,147 50,155 11,398 61,553 

SAIF-member.................................................................. 933 874,149 561,411 58,110 393,975 452,085 

FDIC-Supervised State Savings Banks.................................... 493 346,828 246,576 140,287 63,776 204,063 

BIF-member..................................................................... 305 281,659 199,970 137,765 24,621 162,386 

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

Total Commercial Banks and 

188 65,170 46,606 2,522 39,154 41,676 

Savings Institutions................................................ 9,354 8,434,686 4,910,620 2,526,228 860,351 3,386,579 

BIF-member........................................................................ 8,125 7,334,672 4,197,230 2,433,423 374,624 2,808,047 

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

Other FDIC-Insured Institutions 

1,229 1,100,013 713,390 92,805 485,728 578,532 

U.S. Branches of Foreign Banks............................................. 18 11,398 5,614 1,220 0 1,220 

Total FDIC-Insured Institutions....................................... 9,372 8,446,084 4,916,234 2,527,448 860,351 3,387,800 

* Excludes $658 billion in foreign office deposits, which are uninsured. 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 14 Fourth Quarter 2002 
TABLE V-B. Assessment Base Distribution and Rate Schedules 

BIF Assessment Base Distribution
 

Assessable Deposits in Millions as of December 31, 2002
 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2003
 

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

7,470 

$3,738 

106 

$15 

1 

$0 

91.7 

96.7 

1.3 

0.4 

0.0 

0.0 

441 5.4 

$87 2.3 

13 0.2 

$2 0.0 

0 0.0 

$0 0.0 

97 

$23 

10 

$1 

5 

$1 

1.2 

0.6 

0.1 

0.0 

0.1 

0.0 

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

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

by on-site examinations. 

SAIF Assessment Base Distribution
 

Assessable Deposits in Millions as of December 31, 2002
 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2003
 

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

1,113 

$959 

7 

$1 

0 

$0 

90.6 

96.9 

0.6 

0.1 

0.0 

0.0 

82 6.7 

$27 2.7 

4 0.3 

$0 0.0 

0 0.0 

$0 0.0 

18 

$2 

4 

$0 

1 

$0 

1.5 

0.2 

0.3 

0.0 

0.1 

0.0 

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

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

by on-site examinations. 

Assessment Rate Schedules
 

First Semiannual 2003 Assessment Period
 

Cents Per $100 of Assessable Deposits
 

Capital Group 

Supervisory Risk Subgroup 

A B C 

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

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

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

0 

3 

10 

3 

10 

24 

17 

24 

27 

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

Currently, the rate schedules are identical. 

FDIC Quarterly Banking Profile 

Fourth Quarter 2002 15 All FDIC-Insured Institutions 
FDIC Quarterly Banking Profile 

Number of FDIC-Insured “Problem” Institutions, 1994–2002 

Number of Institutions 

300 

200 

100 

0 

318 

193 

117 

92 84 79 

94 

114 124 136 146 136 

SAIF Members 

BIF Members 

12/94 12/95 12/96 12/97 12/98 12/99 12/00 12/01 3/02 6/02 12/02 9/02

SAIF Members 54 42 31 19 16 13 20 24 26 25 23 20
 

BIF Members 264 151 86 73 68 66 74 90 98 111 123 116
 

Assets of FDIC-Insured “Problem” Institutions, 1994–2002 

$ Billions 

$73 

$31 

$13 

$7 $11 $10 

$24 

$40 

$52 

$40 $43 $39 

0 

50 

100 

SAIF Member Assets 

BIF Member Assets 

12/94 12/95 12/96 12/97 12/98 12/99 12/00 12/01 3/02 6/02 9/02 12/02 

SAIF Members 31 11 6 2 6 6 13 8 19 8 8 7 

BIF Members 41 20 7 5 5 4 11 32 33 32 35 32 

FOURTH QUARTER 2002 16 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

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.

Tables I-A through V-A. 

The information presented in Tables I-A through V-A of

the FDIC Quarterly Banking Profile is aggregated for all

FDIC-insured Institutions, both commercial banks and sav- ings institutions. Some tables are arrayed by groups of

FDIC-insured institutions based on predominant types of

asset concentration, while other tables aggregate institu- tions by asset size and geographic region. Quarterly and

full-year data are provided for selected indicators, including

aggregate condition and income data, performance ratios,

condition ratios and structural changes, as well as past due,

noncurrent and charge-off information for loans outstand- ing and other assets.

Tables I-B through V-B. 

A separate set of tables(Tables I-B through V-B) provides

quarterly and annual data related to the bank (BIF) and

savings association (SAIF) insurance funds, closed/assisted

institutions, and assessments.

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 perform- ance ratios represent average amounts for the period

(beginning-of-period amount plus end-of-period amount

plus any interim periods, divided by the total number of

periods). For "pooling-of-interest" mergers, the assets of the

acquired institution(s) are included in average assets since

the 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 

Goodwill and intangible assets - FAS 141 terminates the

use of pooling-of-interest accounting for business combina- tions after 2001 and requires purchase accounting. Under

FAS 142 amortization of goodwill is eliminated. Only

intangible assets other than goodwill are amortized each

quarter. In addition companies are required to test for

impairment of both goodwill and other intangibles once

each fiscal year. The year 2002, the first fiscal year affected

by this accounting change, has been designated a transi- tional year and the amount of initial impairments are to be

recorded as extraordinary losses on a "net of tax" basis (and

not as noninterest expense). Subsequent annual review of

intangibles and goodwill impairment may require additional

noninterest expense recognition.

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 report- ed 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

held-to-maturity into the available-for-sale category or the

trading category. Unrealized gains (losses) on transferred

held-to-maturity 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.

ALL FDIC-INSURED INSTITUTIONS 17 FOURTH QUARTER 2002 
 

FDIC Quarterly Banking Profile 

Subchapter S Corporations - The Small Business Job Protec- ble assets. The amount of eligible intangibles (including

tion Act of 1996 changed the Internal Revenue Code to servicing rights) included in core capital is limited in accorallow financial institutions to elect Subchapter S corporation dance with supervisory capital regulations.

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, limitedlife 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 Taa i 

iask-Basad iask-Basad Taa i Tatga la

(Pa :att Capatal . Capatal . lava aga Eqlaty

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 pa :attaga of ask-waaghtad assats.

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. 

Assets securitized and sold - total outstanding principal balance of assets sold and securitized with servicing retained or

other seller-provided credit enhancements.

BIF-insured deposits (estimated) - the portion of estimated

insured deposits that is insured by the BIF. For SAIF-mem- ber "Oakar" institutions, it represents the adjusted attributa- ble 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 intangiCost 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 con- tracts 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.

Domestic deposits to total assets - total domestic office

deposits as a percent of total assets on a consolidated basis.

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

total domestic deposits minus estimated uninsured deposits.

While 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 was

adjusted to consider a financial institution's better estimate.

Since March 31, 2002, all institutions provide a reasonable

estimate of uninsured deposits from their systems and

records.

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 and by TFR filers.

Goodwill and other intangibles - intangible assets include

servicing rights, purchased credit card relationships and

FOURTH QUARTER 2002 18 ALL FDIC-INSURED INSTITUTIONS 
 

FDIC Quarterly Banking Profile 

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 loans to total assets - loans and lease financing receivables, net of unearned income, allowance and reserves, as a
 

percent of total assets on a consolidated basis.
 

Net operating income - income excluding discretionary
 transactions such as gains (or losses) on the sale of invest- ment securities and extraordinary items. Income taxes sub- tracted 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 SAIF-member institutions for which the FDIC is the primary federal

regulator, FDIC composite ratings are used. For all SAIFmember 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.

Retained earnings - net income less cash dividends on common and preferred stock for the reporting period.
 

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 aver- age total equity capital.
 

Risk-weighted assets - assets adjusted for risk-based capital
 

definitions which include on-balance-sheet as well as off-balance-sheet items multiplied by risk-weights that range from
 

zero to 100 percent. A conversion factor is used to assign a
 

balance sheet equivalent amount for selected off-balancesheet accounts.
 

SAIF-insured deposits (estimated) - the portion of estimated
 

insured deposits that is insured by the SAIF. For BIF-member "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-tomaturity 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.
 

Trust assets - market value, or other reasonably available
 

value of fiduciary and related assets, to include marketable
 

securities, and other financial and physical assets. Common physical assets held in fiduciary accounts include real
 

estate, equipment, collectibles, and household goods.
 

Such fiduciary assets are not included in the assets of the
 

financial institution.
 

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.
 

ALL FDIC-INSURED INSTITUTIONS 19 FOURTH QUARTER 2002 
The FDIC Quarterly Banking Profile is published quarterly by the Division of Insurance and Research of the

Federal Deposit Insurance Corporation. Single copy subscriptions of the FDIC Quarterly Banking Profile can be

obtained through the FDIC Public Information Center, 801 17th Street, NW, Washington, DC 20434; Telephone

(202) 416-6940 or (800) 276-6003; or Email: publicinfo@fdic.gov.

The FDIC Quarterly Banking Profile is available on-line by visiting the FDIC's website 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.

Chairman Donald E. Powell

Director, Division of Insurance Arthur J. Murton

and Research

Media Inquiries (202) 898-6993

Authors Don Inscoe

Associate Director, Statistics Branch

(202) 898-3940

Kevin Brown 

(202) 898-6817

Ross Waldrop

(202) 898-3951