Donna Tanoue, Chairman 

Fourth Quarter 1998 

FDIC 

Division of Research 

& Statistics 

Don Inscoe 

Associate Director 

Statistics Branch 

(202) 898-3940 

Tim Critchfield 

(202) 898-8557 

Jim McFadyen 

(202) 898-7027 

Ross Waldrop 

(202) 898-3951 

COMMERCIAL BANK PERFORMANCE — FOURTH QUARTER, 1998 

• Quarterly Profits Fall Below $15 Billion For First Time In 5 Quarters 

• Merger-Related Expenses Outweigh Surge In Fee Income 

• Savings Deposits Rise Sharply During Fourth Quarter 

• Full-Year Earnings Surpass $60 Billion For The First Time 

• Net Interest Margins Decline To 7-Year Low In 1998 

Insured commercial banks earned $14.9 billion 

in the fourth quarter of 1998, a decline of $148 

million (1.0 percent) from the third quarter, and 

$379 million (2.5 percent) less than fourth-quarter 1997 earnings. This is the first time in five 

quarters that industry earnings have been below 

$15 billion. Large expenses related to corporate 

restructurings were a major factor in the earnings decline. Total noninterest expense was 

$7.5 billion (15.7 percent) higher than in the third 

quarter, and $10.5 billion (23.6 percent) above 

the level of a year ago. The sharp rise in noninterest expenses eclipsed a strong increase in 

noninterest income. Total noninterest revenues 

rose by $4.7 billion (15.9 percent) from thirdquarter levels, and were $7.2 billion (26.5 percent) higher than in the fourth quarter of 1997. 

Noninterest income provided 42 percent of commercial banks’ net operating revenues in the 

fourth quarter. (Net operating revenues equals 

net interest income plus noninterest income.) 

Gains from securities sales contributed $1.1 billion to pre-tax earnings, the first time since 1992 

that quarterly gains have exceeded $1 billion. 

Fourth-quarter earnings also received a boost 

from lower loan-loss provisions. Provisions for 

loan losses totaled $5.5 billion in the fourth quarter, a decline of $1.1 billion (16.0 percent) from 

the third quarter, and only $17 million higher than 

a year earlier. The industry’s return on assets 

(ROA) averaged 1.11 percent in the fourth quarter, compared to 1.15 percent in the third quarter 

and 1.24 percent a year ago. More than half of 

all banks — 53.5 percent — had ROAs of 1 perQUARTERLY NET INCOME, 

1994–1998 

$ Billions 

Securities and Other Gains, Net 

15.9 16.1 Net Operating Income 15.3 

14.5 14.614.7 15.0 14.9 

13.8 13.7 13.2 13.8 

11.8 12.0 12.0 12.0 10.7 11.1 11.2 11.1 

0 

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

1994 1995 1996 1997 1998 

cent or higher in the fourth quarter, but a majority of commercial banks — 54.6 percent — 

reported lower ROAs than in the fourth quarter 

of 1997. 

For the full year, commercial bank earnings 

totaled $61.9 billion, an increase of $2.8 billion 

(4.7 percent) over 1997 results. This is the first 

year that the industry’s earnings have surpassed 

$60 billion. Noninterest income was $19.2 billion 

higher in 1998, while net interest income was up 

by $8.3 billion, and gains from securities sales 

were $1.3 billion greater. Much of the positive 

effect of these improvements was offset by an 

increase of $24.1 billion in noninterest expense, 

and a $2.4-billion increase in loan-loss provisions. Loss provisions for international operations were $739 million higher in 1998, as 

weaknesses in overseas markets also limited 

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

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

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

from the FDIC’s Institution Directory (I.D.) System on this Web site. 
 

 

 

NET INCOME FROM DOMESTIC AND FOREIGN Net interest margins declined in the fourth quarter, 

OPERATIONS, 1989–1998 

$ Billions 

60 

40 

20 

0 

Domestic Operations 

Foreign Operations 

5.2 

56.7 

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 

after registering modest gains in the previous two 

quarters. Average asset yields fell by 26 basis points, 

while average funding costs declined by 22 basis 

points. The fourth-quarter net interest margin of 4.09 

percent was slightly higher than the 4.06 percent 

banks registered in the first quarter, but otherwise it 

was the industry’s lowest quarterly margin since the 

second quarter of 1991. For all of 1998, commercial 

bank net interest margins declined by 14 basis points, 

to 4.07 percent from 4.21 percent in 1997. This is the 

sixth consecutive year that the industry’s net interest 

margin has declined, and the sharpest year-to-year 

decline since 1974-75, when it fell by 30 basis points. 

QUARTERLY NET INTEREST MARGINS, 

1994–1998 

Net Interest Margin (%) 

the improvement in bank earnings. Banks’ earnings 

from international operations were $875 million (14.4 

percent) lower than in 1997, the second consecutive 

year that international earnings have declined. The 

industry’s ROA fell to 1.19 percent in 1998, from 1.23 

percent in 1997, but remained above 1 percent for the 

sixth consecutive year. Almost two-thirds of all commercial banks — 63.2 percent — had full-year ROAs of 

1 percent or higher in 1998. The percentage of banks 

reporting full-year losses rose for the third consecutive 

year. In 1998, 5.8 percent of commercial banks reported net losses, compared to 4.9 percent in 1997. This 

is the highest proportion of unprofitable banks since 

1992, when 6.9 percent lost money. Full-year industry 

earnings include $384 million in net income reported 

by 9 commercial banks that are directly owned by 

other commercial banks. The owners of these banks 

report income on a consolidated basis, causing this 

income to be double-counted. Approximately $153 

million was double-counted in fourth-quarter earnings 

(see Notes to Users, p. 21). 

RETURN ON ASSETS (ROA) AND EQUITY (ROE), 

1934–1998 

ROA (%) 

1.5 

ROE (%) 

15 

1.0 10 

0.5 5 

0 0 

Return on 

Assets 

Return on 

Equity 

'35 '40 '45 '50 '55 '60 '65 '70 '75 '80 '85 '90 '95 

5.0 

4.5 

4.0 Assets > $100 Million 

4.49% 

4.07% 

Assets < $100 Million 

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

1994 1995 1996 1997 1998 

Asset quality showed signs of weakening in 1998. 

Noncurrent loans increased by $2.7 billion in 1998, the 

first year since 1990 to have an increase. The rise in 

noncurrent loans occurred despite higher loan chargeoffs. Noncurrent commercial and industrial loans 

increased by $2.2 billion during 1998, from 0.85 percent to 0.99 percent of total commercial and industrial 

loans. Banks charged-off $20.7 billion (0.67 percent 

of their loans) in 1998, an increase of $2.4 billion (13.0 

percent) over 1997. Noncurrent loans increased in 

three of the four quarters of 1998, including a $1.7-billion increase in the fourth quarter. Because of growth 

in banks’ loan portfolios, the percentage of loans that 

were noncurrent at year-end remained unchanged 

from a year earlier, at 0.96 percent, slightly higher than 

the record low level of 0.94 percent registered at the 

end of the second and third quarters of 1998. 

Growth in capital and reserves, which had been strong 

through most of 1998, slowed in the fourth quarter. 

Loss reserves increased by only $14 million in the 

fourth quarter, but for the full year, reserves increased 

by $2.6 billion (4.7 percent), the largest annual 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 Fourth Quarter 1998 
 

 

 

 

 

 

 

 

 

 

ANNUAL NET CHARGE-OFF RATES ON LOANS, The $171.8-billion increase in commercial bank assets 

1989–1998 

% of Loans 

0 

1 

2 

3 

Loans to Individuals 

All Other Loans* 

C&I 

Real Estate 

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 

*Includes loans to foreign governments, depository institutions and lease 

receivables. 

increase since 1989. The industry’s “coverage ratio” 

declined to $1.83 in reserves for every $1.00 of noncurrent loans, from $1.94 at the end of the third quarter and $1.92 at the end of 1997. Equity capital 

increased by only $4.8 billion in the fourth quarter; this 

slight increase, combined with the large growth in commercial bank assets, caused the industry’s equity-toassets ratio to decline from 8.68 percent to 8.50 

percent during the quarter. For the full year, equity 

capital increased by $44.3 billion (10.6 percent). 

Dividends registered their first year-to-year decline 

since 1991-92, falling by $1.4 billion from 1997 levels, 

and this decline helped boost retained earnings and 

supported the strong growth of capital in 1998. 

NONCURRENT LOAN RATES AT YEAR-END,* 

1989–1998 % of Loans 

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 

0 

1 

2 

3 

4 

5 

Loans to Individuals 

All Other Loans** 

C&I 

Real Estate 

*Noncurrent loan rates represent the percentage of loans that are past due 90 days 

or more or in nonaccrual status. 

** Includes loans to foreign governments, depository institutions and lease receivables. 

in the fourth quarter set a new quarterly record, surpassing the previous record of $145.7 billion set in the 

fourth quarter of 1997. Growth in residential mortgage 

assets was especially strong. Banks’ holdings of 1-4 

family residential mortgages increased by $26.0 billion 

(3.5 percent), while their mortgage-backed securities 

increased by $36.7 billion (8.5 percent). Commercial 

real estate loans grew by $13.5 billion, and cash items 

in process of collection and credit-card loans had seasonal increases of $21.4 billion and $12.9 billion, 

respectively. On the funding side of the balance sheet, 

domestic-office deposits had their largest quarterly 

increase ever, rising by $157.4 billion. Much of the 

increase occurred in savings deposits, which rose by 

$93.6 billion, with money-market deposit accounts 

(MMDAs) accounting for $63.6 billion. Demand 

deposits had a strong seasonal increase of $45.5 billion in the fourth quarter. 

STRUCTURAL CHANGES AMONG FDIC-INSURED 

COMMERCIAL BANKS, 1980–1998 

'80 '82 '84 '86 '88 '90 '92 '94 '96 '98 

0 

200 

400 

600 Mergers 

New Charters 

Failed Banks 

557 

190 

3 

The number of insured commercial banks reporting 

financial results fell by 135 institutions in the fourth 

quarter, to 8,774 at year-end. Mergers absorbed 198 

commercial banks, while there were 65 new charters, 

one voluntary liquidation, and one bank that did not file 

a year-end report. No insured commercial banks 

failed during the fourth quarter. For all of 1998, the net 

decline totaled 368 banks, as 557 banks were 

absorbed by mergers, 190 new banks were chartered, 

3 banks failed, and 2 noninsured institutions became 

insured. At the end of 1998, there were 69 commercial banks with $5.4 billion in assets on the FDIC’s 

“Problem List,” down from 70 “problem” banks at the 

end of the third quarter, and 71 at the beginning of the 

year. 

FDIC Quarterly Banking Profile 

Fourth Quarter 1998 3 FDIC-Insured Commercial Banks 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

1998 1997 1996 1995 1994 1993 1992 

Return on assets (%)............................................. 1.19 1.23 1.19 1.17 1.15 1.20 0.93 

Return on equity (%)............................................. 13.95 14.68 14.45 14.66 14.61 15.34 12.98 

Core capital (leverage) ratio (%).............................. 7.54 7.56 7.64 7.61 7.64 7.65 7.21 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.65 0.66 0.75 0.85 1.01 1.61 2.54 

Net charge-offs to loans (%).................................... 0.67 0.64 0.58 0.49 0.50 0.85 1.27 

Asset growth rate (%).......................................... 8.49 9.54 6.16 7.53 8.21 5.72 2.19 

Net interest margin (%).......................................... 4.07 4.21 4.27 4.29 4.36 4.40 4.41 

Net operating income growth (%)........................... 2.39 12.47 6.43 7.48 16.18 35.36 92.41 

Number of institutions reporting.............................. 8,774 9,142 9,527 9,940 10,451 10,958 11,462 

Percentage of unprofitable institutions (%)............... 5.82 4.85 4.27 3.55 3.98 4.89 6.85 

Number of problem institutions.............................. 69 71 82 144 247 426 787 

Assets of problem institutions (in billions).................. $5 $5 $5 $17 $33 $242 $408 

Number of failed/assisted institutions........................ 3 1 5 6 11 42 100 

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

(dollar figures in millions) 

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

Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

1998 1998 1997 97:4-98:4 

8,774 8,909 9,142 -4.0 

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

CONDITION DATA

1,624,235 1,597,756 1,538,408 5.6 

 Total assets..................................................................... $5,440,943 $5,269,158 $5,014,946 8.5

 Loans secured by real estate.......................................... 1,345,418 1,300,426 1,244,014 8.2

 Commercial & industrial loans.......................................... 898,768 873,954 795,922 12.9

 Loans to individuals...................................................... 571,119 555,312 561,369 1.7

 Farm loans.................................................................. 46,251 48,214 44,879 3.1

 Other loans & leases...................................................... 381,046 372,148 329,022 15.8

 Less: Unearned income................................................... 4,043 4,193 4,469 -9.5

 Total loans & leases...................................................... 3,238,559 3,145,861 2,970,738 9.0

 Less: Reserve for losses................................................... 57,279 57,265 54,684 4.7

 Net loans and leases...................................................... 3,181,281 3,088,596 2,916,054 9.1

 Securities........................................................................ 979,654 923,027 871,868 12.4

 Other real estate owned................................................... 3,148 3,433 3,795 -17.1

 Goodwill and other intangibles.......................................... 80,159 77,111 61,700 29.9

 All other assets............................................................... 1,196,702 1,176,992 1,161,529 3.0 

Total liabilities and capital................................................... 5,440,943 5,269,158 5,014,946 8.5

 Noninterest-bearing deposits............................................. 718,506 653,803 676,381 6.2

 Interest-bearing deposits.................................................. 2,963,016 2,853,038 2,745,345 7.9

 Other borrowed funds...................................................... 903,015 907,418 823,057 9.7

 Subordinated debt............................................................ 72,787 68,823 62,016 17.4

 All other liabilities............................................................ 321,394 328,656 290,194 10.8

 Equity capital.................................................................. 462,225 457,420 417,954 10.6 

Loans and leases 30-89 days past due................................. 40,880 37,752 39,047 4.7 

Noncurrent loans and leases................................................ 31,253 29,527 28,542 9.5 

Restructured loans and leases............................................. 1,851 1,950 2,472 -25.1 

Direct and indirect investments in real estate........................... 506 513 659 -23.2 

1-4 Family residential mortgages.......................................... 765,281 739,328 718,758 6.5 

Mortgage-backed securities................................................ 470,201 433,543 384,129 22.4 

Earning assets.................................................................. 4,675,569 4,530,906 4,311,321 8.4 

Long-term assets (5+ years)................................................ 1,019,657 926,498 777,058 31.2 

Volatile liabilities............................................................... 1,723,707 1,700,297 1,600,871 7.7 

Foreign office deposits...................................................... 572,022 554,722 526,195 8.7 

Unused loan commitments................................................ 3,727,961 3,615,187 3,095,628 20.4 

Off-balance-sheet derivatives............................................. 33,374,723 33,448,875 25,380,445 31.5 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

Full Year Full Year 4th Quarter 4th Quarter %Change 

1998 1997 %Change 1998 1997 97:4-98:4 

$362,073 $339,547 6.6 $91,530 $88,481 3.5 

179,291 165,040 8.6 44,500 43,857 1.5

182,783 174,506 4.7 47,030 44,625 5.4 

22,209 19,848 11.9 5,537 5,520 0.3 

123,745 104,498 18.4 34,421 27,216 26.5 

194,047 169,983 14.2 54,863 44,407 23.6 

3,127 1,842 69.8 1,057 866 22.1 

31,986 31,874 0.4 7,203 7,507 -4.0 

508 19 N/M -7 4 N/M

61,921 59,161 4.7 14,897 15,276 -2.5 

20,695 18,315 13.0 5,493 5,080 8.1 

41,091 42,514 -3.4 12,687 16,019 -20.8

59,318 57,933 2.4 14,127 14,704 -3.9 

N/M - Not meaningful 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 Fourth Quarter 1998 
TABLE III-A. Full Year 1998, FDIC-Insured Commercial Banks 

FULL YEAR Preliminary 

(The way it is...) 

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

All 

Instituitions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

8,774 5,408 2,974 321 71 693 1,444 1,904 2,265 1,518 950 

Total assets (in billions).................................... $5,440.9 $252.4 $727.0 $921.4 $3,540.2 $1,921.0 $1,211.4 $889.3 $376.5 $304.6 $738.2 

Total deposits (in billions)................................. 3,681.5 215.9 600.9 632.7 2,232.0 1,180.8 810.5 621.7 275.3 250.3 542.9 

Net income (in millions).................................... 61,921 2,744 8,983 13,138 37,056 20,094 15,092 10,465 5,320 3,284 7,665 

% of unprofitable institutions.............................. 5.8 8.2 2.0 1.9 1.4 7.6 8.9 4.0 2.6 5.7 11.4 

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

Performance ratios (%) 

61.8 56.3 71.1 65.4 71.8 67.7 61.5 63.7 58.7 59.2 65.5 

Yield on earning assets.................................... 8.07 8.22 8.29 8.49 7.90 8.11 7.79 7.95 8.43 7.87 8.48 

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

Net interest margin.......................................... 4.07 4.51 4.58 4.68 3.76 3.59 4.07 4.00 4.62 4.46 5.00 

Noninterest income to earning assets.................. 2.76 1.64 1.74 3.15 2.96 3.41 2.37 2.24 2.71 1.61 2.89 

Noninterest expense to earning assets.................. 4.32 4.17 3.90 4.63 4.35 4.56 4.02 3.85 4.23 4.00 5.02 

Credit loss provision to assets........................... 0.43 0.26 0.33 0.67 0.40 0.44 0.30 0.33 0.54 0.27 0.71 

Net operating income to assets........................... 1.14 1.14 1.29 1.42 1.03 1.00 1.23 1.23 1.49 1.10 1.08 

Return on assets............................................. 1.19 1.14 1.31 1.52 1.08 1.07 1.31 1.25 1.50 1.14 1.11 

Return on equity............................................. 13.95 10.15 13.57 15.96 13.82 14.10 14.47 14.71 16.66 12.41 11.39 

Net charge-offs to loans and leases..................... 0.67 0.30 0.39 1.02 0.65 0.91 0.43 0.44 0.74 0.42 0.86 

Credit loss provision to net charge-offs.................. 105.01 147.11 138.54 102.32 100.75 90.77 110.47 116.37 108.56 115.58 123.54 

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

Condition Ratios (%) 

60.98 67.30 60.93 56.02 62.11 62.65 59.68 60.15 56.62 64.25 60.83 

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

Loss allowance to: 

85.93 91.65 91.73 89.26 83.47 82.77 87.25 88.37 90.22 89.36 85.48 

Loans and leases.......................................... 1.77 1.45 1.50 2.04 1.77 2.04 1.45 1.48 1.69 1.37 2.22 

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

Noncurrent assets plus 

183.27 139.42 176.51 199.28 183.03 159.18 188.05 184.39 216.98 147.16 244.20 

other real estate owned to assets..................... 0.65 0.71 0.62 0.71 0.64 0.78 0.55 0.56 0.57 0.59 0.67 

Equity capital ratio............................................. 8.50 10.95 9.52 9.46 7.86 7.81 9.10 8.27 8.72 8.83 9.29 

Core capital (leverage) ratio.............................. 7.54 10.80 9.18 8.42 6.75 7.01 7.74 7.70 8.37 8.10 7.82 

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

Structural Changes 

86.41 66.34 72.19 90.98 90.89 83.29 91.78 91.59 89.80 65.73 87.08 

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

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

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

PRIOR FULL YEARS

 (The way it was...) 

3 2 1 0 0 0 0 1 0 0 2 

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

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

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

Total assets (in billions).............................1997 $5,014.9 $267.8 $727.7 $902.7 $3,116.7 $1,893.9 $946.9 $804.8 $335.0 $355.9 $678.4

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

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

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

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

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

Net charge-offs to loans & leases (%) 

1.20 1.14 1.17 1.31 1.16 1.12 1.20 1.28 1.44 1.39 1.11 

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

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

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

Noncurrent assets plus 

0.85 0.35 0.51 0.92 1.02 1.27 0.43 0.51 0.61 0.28 0.96 

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

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

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

Equity capital ratio (%)..............................1997 8.33 10.81 9.62 9.16 7.58 7.34 8.87 8.35 9.06 8.65 9.82

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

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

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

Rhode Island, Vermont, U.S. Virgin Islands

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

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

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

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

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

FDIC Quarterly Banking Profile 

Fourth Quarter 1998 5 FDIC-Insured Commercial Banks 
 

 

TABLE IV-A. Fourth Quarter 1998, FDIC-Insured Commercial Banks 

FOURTH QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- South 

west west West 

8,774 5,408 2,974 321 71 693 1,444 1,904 2,265 1,518 950 

Total assets (in billions).................................... $5,440.9 $252.4 $727.0 $921.4 $3,540.2 $1,921.0 $1,211.4 $889.3 $376.5 $304.6 $738.2 

Total deposits (in billions)................................. 3,681.5 215.9 600.9 632.7 2,232.0 1,180.8 810.5 621.7 275.3 250.3 542.9 

Net income (in millions).................................... 14,897.2 532.0 2,159.3 3,044.6 9,161.4 4,925.1 4,088.8 2,352.3 1,340.2 746.5 1,444.4 

% of unprofitable institutions.............................. 11.8 16.1 4.6 7.5 5.6 10.7 14.1 7.5 12.2 13.7 13.7 

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

Performance Ratios (annualized, %) 

54.8 50.7 61.4 60.1 70.4 61.8 56.9 58.4 51.6 50.3 54.6 

Yield on earning assets.................................... 7.95 8.19 8.19 8.45 7.75 8.01 7.57 7.83 8.35 7.80 8.48 

Cost of funding earning assets........................... 3.87 3.70 3.64 3.69 3.98 4.37 3.53 3.86 3.73 3.36 3.46 

Net interest margin.......................................... 4.09 4.49 4.55 4.76 3.77 3.65 4.04 3.97 4.62 4.44 5.02 

Noninterest income to earning assets.................. 2.99 1.77 1.78 3.38 3.25 3.73 2.57 2.83 2.81 1.57 2.71 

Noninterest expense to earning assets.................. 4.77 4.62 3.99 5.18 4.84 5.04 4.23 4.62 4.36 4.16 5.65 

Credit loss provision to assets........................... 0.41 0.33 0.44 0.64 0.36 0.44 0.31 0.39 0.61 0.32 0.47 

Net operating income to assets........................... 1.06 0.84 1.19 1.32 0.97 0.97 1.25 1.06 1.45 0.95 0.79 

Return on assets............................................. 1.11 0.86 1.21 1.36 1.05 1.03 1.37 1.09 1.47 1.01 0.81 

Return on equity............................................. 12.96 7.73 12.54 14.09 13.23 13.27 14.90 12.75 16.44 11.01 8.48 

Net charge-offs to loans and leases..................... 0.69 0.44 0.53 0.92 0.67 0.95 0.51 0.57 0.81 0.54 0.57 

Credit loss provision to net charge-offs.................. 99.10 130.47 135.14 108.73 88.20 86.97 96.71 106.90 111.43 105.34 126.27 

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

Structural Changes (QTR) 

64.39 73.28 62.04 58.00 66.28 64.08 60.96 66.47 57.54 67.42 70.35 

New charters................................................ 65 62 2 1 0 9 21 9 5 6 15 

Banks absorbed by mergers........................... 198 96 80 20 2 13 59 50 32 22 22 

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

PRIOR FOURTH QUARTERS

 (The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%)................................1997 1.24 0.99 1.26 1.55 1.16 1.13 1.06 1.37 1.57 1.17 1.47

 .................................................1995 1.12 1.05 1.20 1.27 1.04 0.96 1.18 1.09 1.42 1.22 1.35

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

Net charge-offs to loans & leases (%)

1.17 0.92 1.04 1.36 1.16 1.14 1.10 1.22 1.49 1.26 1.10 

 .................................................1997 0.69 0.43 0.47 1.21 0.60 0.81 0.54 0.54 0.83 0.51 0.84

 .................................................1995 0.62 0.39 0.52 0.92 0.52 0.75 0.48 0.45 0.67 0.38 0.75

 .................................................1993 0.93 0.52 0.66 0.95 1.11 1.42 0.49 0.56 0.73 0.40 0.97 

Credit Card Loss Rates and Personal Bankruptcy Filings, Bank Mergers: Acquisitions vs. Consolidations,* 

1984-1998 1985-1998 

Number of Bankruptcy Filings 

Net Charge-Off Rate (%) (Thousands) Number of Banks Absorbed** 

100 

150 

200 

250 

300 

350 

400 

Acquisitions 

Consolidations 

195 

337 

 0

 1

 2

 3

 4

 5

 6

 7 

50 

100 

150 

200 

250 

300 

350 

400 

Credit Card Charge-Off Rates 

Personal 

Bankruptcy 

Filings 

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 *Acquisitions = change in holding company ow nership w ithin 12 months of merger. Sources: Bankruptcies - Administrative Office of the United States Courts Charge-Off Rates - Commercial Bank Call Reports Consolidations = no change in ow nership w ithin 12 months of merger. 

**Does not include commercial banks merged into savings institutions. 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 6 Fourth Quarter 1998 
TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

December 31, 1998 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate........................... 1.26 1.47 1.10 1.19 1.32 1.25 1.34 1.32 1.15 1.49 1.00 

Construction and development........................... 1.50 1.21 1.03 1.47 1.80 1.19 1.53 1.88 1.46 1.80 1.08 

Commercial real estate.................................... 0.99 1.07 0.75 1.07 1.07 0.94 1.13 1.08 0.90 1.11 0.70 

Multifamily residential real estate........................ 0.87 0.50 0.58 0.82 1.04 0.69 0.95 1.03 0.87 0.64 0.93 

Home equity loans.......................................... 0.98 0.91 0.94 1.00 0.99 0.97 0.99 1.18 0.66 0.81 0.82 

Other 1-4 Family residential.............................. 1.44 1.92 1.45 1.27 1.45 1.42 1.49 1.45 1.25 1.80 1.33 

Commercial and industrial loans*........................... 0.88 1.62 1.35 1.14 0.67 0.57 0.83 1.15 1.55 1.51 0.86 

Loans to individuals............................................. 2.43 2.54 2.36 2.48 2.42 2.67 2.36 2.53 2.32 2.08 2.02 

Credit card loans............................................. 2.58 2.56 3.73 2.52 2.54 2.72 2.68 2.77 2.53 1.44 2.17 

Other loans to individuals................................. 2.33 2.54 2.09 2.43 2.33 2.60 2.24 2.48 2.14 2.11 1.84 

All other loans and leases (including farm)............... 0.51 N/A N/A 0.97 0.48 0.37 0.44 1.01 0.63 0.96 0.28 

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

Percent of Loans Noncurrent** 

0.61 0.56 0.35 0.40 0.63 0.22 0.68 2.08 0.86 1.50 0.17 

All real estate loans............................................. 0.91 0.87 0.71 0.84 1.02 1.22 0.85 0.78 0.59 0.94 0.86 

Construction and development........................... 0.81 0.82 0.65 0.68 0.95 1.40 0.72 0.76 0.66 0.69 0.79 

Commercial real estate.................................... 0.95 0.86 0.75 0.92 1.08 1.31 0.90 0.81 0.56 1.09 0.91 

Multifamily residential real estate........................ 0.85 0.84 0.64 0.91 0.90 1.03 0.99 0.71 0.37 0.73 0.78 

Home equity loans.......................................... 0.43 0.53 0.41 0.51 0.40 0.53 0.37 0.46 0.28 0.32 0.39 

Other 1-4 Family residential.............................. 0.88 0.80 0.69 0.85 0.95 0.99 0.89 0.82 0.56 0.83 0.94 

Commercial and industrial loans*........................... 0.99 1.40 1.24 0.90 0.89 1.14 0.73 0.86 1.21 1.36 0.93 

Loans to individuals............................................. 1.52 0.92 0.81 1.54 1.69 2.24 0.87 1.10 1.09 0.57 1.67 

Credit card loans............................................. 2.22 1.81 1.93 1.99 2.39 2.35 1.57 2.39 1.57 0.74 2.66 

Other loans to individuals................................. 1.06 0.88 0.59 1.07 1.20 2.11 0.62 0.81 0.66 0.56 0.43 

All other loans and leases (including farm)............... 0.34 N/A N/A 0.50 0.33 0.42 0.28 0.36 0.29 0.39 0.22 

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

Percent of Loans Charged-off (net, YTD) 

0.34 0.57 0.30 0.43 0.33 0.22 0.29 0.26 0.12 0.57 0.60 

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

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

Commercial real estate.................................... 0.00 0.05 0.05 0.06 -0.05 -0.09 0.03 0.06 -0.05 0.02 0.01 

Multifamily residential real estate........................ 0.05 0.08 0.04 -0.01 0.07 0.01 0.06 0.01 0.02 0.00 0.15 

Home equity loans.......................................... 0.14 0.05 0.07 0.17 0.14 0.18 0.11 0.15 0.11 0.38 0.09 

Other 1-4 Family residential.............................. 0.07 0.05 0.06 0.06 0.07 0.08 0.06 0.05 0.06 0.06 0.07 

Commercial and industrial loans........................... 0.43 0.44 0.47 0.49 0.39 0.42 0.39 0.35 0.44 0.50 0.59 

Loans to individuals............................................. 2.66 0.92 1.67 3.17 2.72 3.41 1.84 1.74 2.97 1.26 3.41 

Credit card loans............................................. 5.12 4.14 6.44 5.32 4.92 5.24 4.43 5.27 5.28 4.11 5.22 

Other loans to individuals................................. 1.04 0.65 0.73 0.92 1.21 1.27 0.91 0.85 0.79 1.04 1.28 

All other loans and leases (including farm)............... 0.39 N/A N/A 0.36 0.43 0.41 0.23 0.32 0.23 0.16 0.68 

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

Loans Outstanding (in billions) 

-0.05 0.99 0.39 -0.57 -0.02 -0.18 0.01 0.05 0.05 0.29 -0.06 

All real estate loans............................................. $1,345.4 $81.4 $273.6 $273.0 $717.5 $323.8 $382.0 $263.5 $115.3 $74.4 $186.4 

Construction and development........................... 106.7 6.0 26.0 25.6 49.1 11.9 36.8 20.9 9.5 9.2 18.4 

Commercial real estate.................................... 371.0 22.1 95.2 82.9 170.8 69.4 102.3 77.2 28.7 27.0 66.4 

Multifamily residential real estate........................ 42.7 1.7 8.7 10.2 22.2 11.4 9.7 8.8 3.1 2.0 7.6 

Home equity loans.......................................... 96.7 1.8 11.9 18.5 64.5 21.1 29.3 23.2 4.8 0.9 17.4 

Other 1-4 Family residential.............................. 668.6 39.4 120.8 132.1 376.3 182.6 198.1 126.0 59.7 32.2 70.1 

Commercial and industrial loans........................... 898.8 24.5 80.9 119.5 673.9 313.8 190.7 161.0 53.4 44.9 135.0 

Loans to individuals............................................. 571.1 21.1 62.2 158.6 329.2 209.8 112.2 86.2 49.6 32.4 80.9 

Credit card loans............................................. 229.0 1.1 10.2 82.0 135.8 113.7 29.6 15.8 23.6 1.3 44.9 

Other loans to individuals................................. 342.1 20.1 52.0 76.6 193.5 96.2 82.6 70.4 26.0 31.0 35.9 

All other loans and leases (including farm)............... 427.3 18.8 24.9 37.1 346.4 158.3 70.5 67.8 33.3 15.6 81.8 

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

Memo: Other Real Estate Owned (in millions) 

37.1 0.2 0.9 2.6 33.4 12.0 8.9 3.7 2.5 1.7 8.4 

All other real estate owned................................. $3,147.5 $287.0 $732.0 $496.8 $1,631.8 $1,011.9 $800.5 $367.8 $198.4 $238.0 $531.0 

Construction and development........................... 300.9 31.1 128.3 55.7 85.7 60.9 114.5 31.2 30.0 14.1 50.1 

Commercial real estate.................................... 1,318.4 121.0 320.8 214.2 662.4 391.0 286.1 153.0 73.3 132.0 283.0 

Multifamily residential real estate........................ 71.9 7.4 18.5 26.6 19.4 26.3 18.6 6.6 6.5 1.9 12.0 

1-4 Family residential....................................... 1,136.3 97.9 238.6 193.3 606.5 280.2 371.9 171.4 69.4 67.5 175.9 

Farmland...................................................... 67.1 29.6 25.9 6.8 4.8 3.4 9.3 5.5 19.2 22.5 7.1 

Other real estate owned in foreign offices............ 253.0 0.0 0.0 0.1 252.9 250.0 0.2 0.0 0.0 0.0 2.8 

* Includes "All other loans" for institutions under $1 billion in asset size. N/A - Not Available 

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

FDIC Quarterly Banking Profile FDIC-Insured Commercial Banks 

Fourth Quarter 1998 7 
SAVINGS INSTITUTION PERFORMANCE – FOURTH QUARTER, 1998 

• Earnings Drop To $2.0 Billion In Fourth Quarter 

• Merger-Related Charges Cause Reduction In Quarterly Earnings 

• Despite The Fourth Quarter Decline, Full-Year Earnings Are Highest Ever 

• Full-Year ROA Surpasses 1 Percent For The First Time Since 1946 

• Equity Capital Declines For The First Time Since 1996 

Savings institutions earned $2.0 billion in the fourth 

quarter, $921 million less than they earned in the 

third quarter. This was the lowest quarterly income 

since the third quarter of 1997. Net interest income 

improved by $158 million during the quarter, while 

noninterest income and expense deteriorated dramatically: noninterest income declined $836 million 

(27 percent), since there were fewer gains from asset 

sales, and noninterest expense increased $777 million (13 percent), primarily because of merger-related 

charges taken by a few large institutions. Operating 

expenses as a percentage of gross operating income 

rose from 54 percent in the third quarter to 66 percent. This rise was an exception to the improving 

trend in the industry’s efficiency ratio. 

The industry’s average annualized return on assets 

(ROA) was 0.76 percent, the lowest since the third 

quarter of 1996, when a special assessment on SAIF 

deposits caused the industry to report a small loss. 

Just 29 percent of the industry achieved an ROA of 

over 1 percent, but over half (52 percent) reported 

higher earnings than in the fourth quarter of 1997. 

Nine percent of savings institutions were unprofitable 

this quarter compared to 8.3 percent a year ago. 

QUARTERLY NET INCOME, 1994–1998 

$ Billions 

1.3 

1.8 

1.9 

1.6 1.7 1.9 

2.2 

1.8 

2.5 2.6 

-0.0 

2.2 

2.4 2.4 

2.0 

2.3 

2.6 

2.8 3.0 

2.0 

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

Net Operating Income 

Securities and Other Gains, Net 

1994 1995 1996 1997 1998 

Despite the fourth-quarter decline, full-year earnings 

reached a record $10.2 billion for an ROA of 1.01 percent — the highest annual ROA since 1946. 

Earnings were $1.4 billion above the previous record, 

set in 1997; in that year the industry’s ROA was 0.93 

percent. Net interest income for the year was $554 

million higher than in 1997 because of growth in 

earning assets. Provisions for loan losses were $413 

million (19 percent) lower than in the previous year, 

as loan losses declined by $129 million. Improvements in noninterest income (up by $2.2 billion) were 

more than offset, particularly in the fourth quarter, by 

increases in noninterest expenses (of $2.5 billion). 

Gains on the sales of securities1 were $2.5 billion in 

1998, nearly double the gains of $1.3 billion in 1997. 

Conditions for gains on sales of securities were more 

favorable in 1998 because of the decline in interest 

rates. 

ANNUAL RETURN ON ASSETS, 1947–1998 

ROA (%) 

1.0 

0.5 

0 

-0.5 

'50 '55 '60 '65 '70 '75 '80 '85 '90 '95 

For the fourth quarter, the industry’s net interest margin was slightly lower, at 3.05 percent, than the thirdquarter margin of 3.07 percent. Both asset yields 

and the cost of funding earning assets declined, by 

15 basis points and 13 basis points, respectively. But 

a $27.3-billion increase in earning assets enabled 

thrifts to increase net interest income without any corresponding improvement in net interest margins. 

1Gains on the sales of securities include gains on the sales of other 

assets available for sale at thrifts that file a Thrift Financial Report. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 Fourth Quarter 1998 

0 
 

 

 

 

 

 

 

 

 

 

QUARTERLY NET INTEREST MARGINS, 

1994–1998 

Net Interest Margins (%) 

4.0 

Assets < $100 Million 3.36% 

3.5 

3.0 

Assets > $100 Million 3.04% 

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

1994 1995 1996 1997 1998 

Noncurrent loans continued to improve, declining to 

the best levels — in percentage of total loans and in 

dollar amounts — in the eight years since all institutions began reporting consistent measures of noncurrent loans. Only 0.86 percent of total loans were 

noncurrent at the end of 1998 and the amount of noncurrent loans declined slightly (by $79 million) during 

the quarter. Loan-loss reserves fell even less ($43 

million). Thus the coverage ratio — loan-loss 

reserves to noncurrent loans — improved slightly to 

$1.11 in reserves for each dollar of noncurrent loans. 

Loan quality improved in every category except credit-card plans. Noncurrent credit-card loans rose from 

1.10 percent of all credit-card plans at the end of the 

third quarter to 1.32 percent at year-end. However, 

this is an improvement over year-ago levels, when 

noncurrent credit cards stood at 1.65 percent. Thrifts 

charged off 4.35 percent of credit cards in 1998. 

Since credit cards are such a small portion of the 

COVERAGE RATIO* AND RESERVE LEVELS, 

1994–1998 

$ Billions Coverage Ratio (%) 

30 120 

25 Coverage Ratio* (%) 100 

20 80 

15 60 

Loan Reserves ($) Noncurrent Loans ($) 

10 40 

5 20 

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

1994 1995 1996 1997 1998 

*Loan-Loss reserves to Noncurrent Loans and Leases. 

FDIC Quarterly Banking Profile 

industry’s loan portfolio, total charge-offs fell to a 

record low of 0.21 percent of total loans from 0.25 

percent in 1997. 

Total assets of the industry rose by $30.9 billion during the quarter, lifted by increases in securities (up by 

$14.1 billion) and in loans (up by $13.4 billion). 

Mortgage-backed securities rose $14.6 billion during 

the quarter while other securities declined slightly. 

Nearly all of the increase in mortgage-backed securities was from collateralized-mortgage obligations. 

Home-mortgage loan growth of $7.4 billion led all 

loan categories. Commercial and industrial loans 

and credit-card loans both increased by $1.7 billion. 

Deposits grew at one third the pace of other borrowed funds during the fourth quarter. Funding from 

deposits increased by $7.8 billion, while funding from 

other borrowed funds rose by $23.4 billion. Much of 

the increase in other borrowed funds was in Federal 

Home Loan Bank advances, which increased by 

$17.4 billion for institutions that filed a Thrift Financial 

Report. 

CAPITAL RATIOS, 1992–1998 

Ratios (%) 

Total Risk-Based Capital 

16 

Tier 1 Risk-Based Capital 12 

Equity to Assets 

8 

Core Capital (Leverage) 

4 

1992 1993 1994 1995 1996 1997 1998 

Instead of continuing to build capital, thrifts leveraged 

capital for asset growth this quarter. The industry’s 

equity-to-assets ratio dropped from 8.99 percent of 

assets at the end of the third quarter to 8.68 percent 

at the end of the fourth quarter, the lowest level in 

over a year. Equity capital declined (by $608 million) 

for the first time since the end of 1996, primarily 

because of transfers to commercial banks. For the 

year, however, capital rose by more than $5 billion, 

and only two institutions were undercapitalized 

according to risk-based capital standards. 

There were 1,687 savings institutions at the end of 

1998, down by 27 from the third quarter. Seven new 

charters began operations during the fourth quarter, 

bringing the total for the year to 28, the most in any 

Fourth Quarter 1998 9 FDIC-Insured Savings Institutions 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STRUCTURAL CHANGES AMONG FDIC-INSURED 

SAVINGS INSTITUTIONS, 1989–1998 

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 

0 

50 

100 

150 

200 

250 

300 

350 

114 

28 

0 

Failed Banks 

New Charters 

Mergers 

year since 1986. Also during the fourth quarter, 3 

commercial banks (with $1.1 billion in assets) and 2 

uninsured institutions (with $18 million in assets) converted their charters to federally insured thrift charters. Commercial banks absorbed 17 savings institutions with $12.3 billion in assets, while savings institutions absorbed another 15 thrifts, with $64.1 billion 

in assets. The latter group included the merger of 

two of the largest thrifts in the industry.2 Three savings institutions with $2.1 billion in assets converted 

to commercial bank charters. During the fourth quarter, 17 thrifts with $4.5 billion in assets converted from 

mutual to stock ownership and savings institutions 

absorbed 4 commercial banks with $455 million in 

assets. 

As in 1997, no savings institution failed during the 

year. Since the Resolution Trust Corporation 

stopped taking failed thrifts (in the middle of 1995), 

only one savings institution has failed (in 1996). The 

number of “problem” thrifts fell to 15 from 18 during 

the fourth quarter, but the assets of this group rose to 

$5.9 billion from $2.9 billion. 

2Washington Mutual, Inc., with $156.2 billion in assets, completed its 

merger with H.F. Ahmanson & Company, which owned Home 

Savings of America, a thrift with $50.3 billion in assets. 

NONCURRENT LOAN RATES,* 

DECEMBER 31, 1998 

West Midwest 

AL 

0.9 

AK 

0.1 

AZ 

0.8 

AR 

0.6 

CA 

0.8 

CO 

0.6 

CT: 0.7 

DE: 0.6 

DC: 1.8 

FL 

0.8 

GA 

0.8 

HI 

2.2 

ID 

0.3 

IL 

0.9 

IN 

1.0 

IA 

0.6 

KS 

0.3 KY 

1.1 

LA 

0.4 

ME 

0.8 

MD: 2.5 

MI MA: 0.5 

0.7 

MN 

0.3 

MS 

1.2 

MO 

0.7 

MT 

0.5 

NE 

0.7 

NV 

NA 

NH: 0.6 

NJ: 3.2 

NM 

1.0 

NY 

1.1 

NC 

0.6 

ND 

0.5 

OH 

0.8 

OK 

0.4 

OR 

0.3 

PA 

0.8 

RI: 1.1 

SC 

0.6 

SD 

1.0 

TN 

0.6 

TX 

1.0 

UT 

1.8 

VT: 1.1 

VA 

0.6 

WA 

0.5 

WV 

1.2 

WI 

0.5 

WY 

1.0 

PR 

NA 

Northeast 

Southwest Southeast 

Between .75% and 1.5% 

Greater than 1.5% 

Less than .75% 

Central 

* Noncurrent loan rates represent the percentage of loans that 

are past due 90 days or more or in nonaccrual status. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Fourth Quarter 1998 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

1998 1997 1996 1995 1994 1993 1992 

Return on assets (%)............................................. 1.01 0.93 0.70 0.77 0.66 0.71 0.66 

Return on equity (%)............................................. 11.36 10.84 8.40 9.40 8.28 9.32 9.51 

Core capital (leverage) ratio (%).............................. 7.85 7.95 7.76 7.80 7.65 7.45 6.77 

Noncurrent assets plus 

other real estate owned to assets (%)..................... 0.72 0.95 1.09 1.20 1.38 2.10 3.07 

Net charge-offs to loans (%).................................... 0.21 0.25 0.32 0.34 0.51 0.65 0.59 

Asset growth rate (%).......................................... 5.99 -0.21 0.25 1.70 0.77 -2.85 -7.44 

Net interest margin................................................ 3.10 3.23 3.22 3.09 3.34 3.51 3.41 

Net operating income growth (%)........................... 7.80 20.07 -13.99 13.81 22.24 21.16 563.55 

Number of institutions reporting.............................. 1,687 1,780 1,925 2,030 2,152 2,262 2,390 

Percentage of unprofitable institutions (%)............... 5.33 4.10 12.05 5.86 6.97 5.88 7.57 

Number of problem institutions.............................. 15 21 35 49 71 146 276 

Assets of problem institutions (in billions).................. $6 $2 $7 $14 $39 $92 $183 

Number of failed/assisted institutions........................ 0 0 1 2 4 8 81 

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

(dollar figures in millions) 

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

Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

1998 1998 1997 97:4-98:4 

1,687 1,714 1,780 -5.2 

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

CONDITION DATA

236,552 244,900 244,848 -3.4 

 Total assets..................................................................... $1,087,684 $1,056,826 $1,026,186 6.0

 Loans secured by real estate.......................................... 643,734 634,267 631,881 1.9 

1-4 Family Residential................................................... 518,055 510,658 506,998 2.2 

Multifamily residential property....................................... 54,469 54,361 57,612 -5.5 

Commercial real estate................................................ 47,840 46,649 47,509 0.7 

Construction, development, and land.............................. 23,370 22,598 19,762 18.3

 Commercial & industrial loans.......................................... 21,040 19,357 16,203 29.9

 Loans to individuals...................................................... 52,581 50,714 47,670 10.3

 Other loans & leases...................................................... 3,741 3,309 3,214 16.4

 Less: Unearned income & contra accounts**........................ 188 164 215 -12.6

 Total loans & leases...................................................... 720,908 707,483 698,753 3.2

 Less: Reserve for losses................................................... 6,922 6,965 6,980 -0.8

 Net loans & leases......................................................... 713,986 700,518 691,773 3.2

 Securities........................................................................ 269,246 255,115 248,681 8.3

 Other real estate owned................................................... 1,578 1,625 2,083 -24.2

 Goodwill and other intangibles.......................................... 14,213 14,015 10,984 29.4

 All other assets............................................................... 88,662 85,552 72,665 22.0 

Total liabilities and capital................................................... 1,087,684 1,056,826 1,026,186 6.0

 Deposits........................................................................ 704,531 696,708 704,136 0.1

 Other borrowed funds...................................................... 267,575 244,188 216,258 23.7

 Subordinated debt............................................................ 2,812 2,823 2,935 -4.2

 All other liabilities............................................................ 18,339 18,071 13,525 35.6

 Equity capital.................................................................. 94,427 95,035 89,332 5.7 

Loans and leases 30-89 days past due................................. 7,479 7,325 8,132 -8.0 

Noncurrent loans and leases................................................ 6,231 6,310 7,623 -18.3 

Restructured loans and leases............................................. 2,428 2,674 3,372 -28.0 

Direct and indirect investments in real estate........................... 589 564 597 -1.4 

Mortgage-backed securities................................................ 207,061 192,472 180,647 14.6 

Earning assets.................................................................. 1,012,246 984,932 959,674 5.5 

FHLB Advances (TFR Filers only)....................................... 143,081 125,674 118,620 20.6 

Unused loan commitments................................................ 184,699 181,773 111,472 65.7 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

Full Year Full Year 4th Quarter 4th Quarter %Change 

1998 1997 %Change 1998 1997 97:4-98:4 

$71,059 $69,175 2.7 $18,397 $18,632 -1.3 

41,888 40,559 3.3 10,832 11,045 -1.9

29,170 28,616 1.9 7,565 7,587 -0.3 

1,773 2,186 -18.9 459 612 -24.9 

9,200 7,029 30.9 2,243 2,025 10.8 

23,545 21,073 11.7 6,675 5,934 12.5 

2,456 1,260 95.0 555 560 -0.9 

5,269 4,852 8.6 1,127 1,319 -14.6 

-83 -5 N/M -67 -2 N/M

10,157 8,789 15.6 2,034 2,306 -11.8 

1,456 1,585 -8.1 403 416 -3.1 

6,557 4,906 33.7 1,741 1,665 4.6

8,490 7,876 7.8 1,708 1,904 -10.3 

* Data between 1992 and 1995 do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. N/M - Not Meaningful 

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

FDIC Quarterly Banking Profile 

Fourth Quarter 1998 11 FDIC-Insured Savings Institutions 
TABLE III-B. Full Year 1998, FDIC-Insured Savings Institutions 

FULL YEAR Preliminary 

(The way it is...) 

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

All 

Instituitions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,687 701 841 111 34 656 232 442 125 119 113 

Total assets (in billions).................................... $1,087.7 $36.2 $244.6 $220.3 $586.6 $359.9 $66.2 $176.1 $36.7 $70.4 $378.4 

Total deposits (in billions)................................. 704.5 29.4 189.8 145.8 339.6 259.5 47.6 122.3 26.0 42.8 206.4 

Net income (in millions).................................... 10,156.7 269.4 2,080.8 2,204.5 5,602.0 3,260.1 568.3 1,604.5 319.1 781.6 3,623.0 

% of unprofitable institutions.............................. 5.3 9.6 2.1 4.5 0.0 3.7 8.6 4.8 8.0 5.9 7.1 

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

Performance ratios (%) 

51.5 42.9 55.3 66.7 82.4 52.9 52.6 47.1 40.8 53.8 67.3 

Yield on earning assets.................................... 7.55 7.63 7.62 7.76 7.44 7.45 7.82 7.65 7.57 7.80 7.51 

Cost of funding earning assets........................... 4.45 4.22 4.24 4.45 4.57 4.12 4.47 4.59 4.62 4.62 4.66 

Net interest margin.......................................... 3.10 3.42 3.39 3.32 2.87 3.33 3.35 3.06 2.95 3.17 2.85 

Noninterest income to earning assets.................. 0.98 0.94 0.68 1.20 1.03 0.72 1.69 1.09 0.76 1.34 1.01 

Noninterest expense to earning assets.................. 2.50 3.14 2.69 2.83 2.26 2.53 3.37 2.68 2.22 2.88 2.20 

Credit loss provision to assets*........................... 0.18 0.10 0.16 0.32 0.14 0.12 0.37 0.25 0.12 0.32 0.14 

Net operating income to assets........................... 0.84 0.67 0.72 0.83 0.91 0.83 0.75 0.71 0.82 0.87 0.94 

Return on assets............................................. 1.01 0.77 0.89 1.08 1.04 0.97 0.94 0.97 0.92 1.20 1.05 

Return on equity............................................. 11.36 6.21 8.35 11.80 13.51 9.82 9.13 10.27 9.34 14.26 14.23 

Net charge-offs to loans and leases..................... 0.21 0.08 0.15 0.27 0.24 0.16 0.54 0.20 0.10 0.41 0.19 

Credit loss provision to net charge-offs.................. 121.80 204.53 160.42 186.38 84.09 127.41 101.36 170.45 163.18 116.95 101.90 

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

Condition Ratios (%) 

59.37 71.56 65.45 60.86 55.02 60.35 65.97 61.78 58.45 62.75 55.00 

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

Loss allowance to: 

93.06 94.33 94.25 92.59 92.67 93.37 92.71 92.34 94.21 92.08 93.24 

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

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

Noncurrent assets plus 

111.09 76.98 106.78 98.55 123.63 96.22 130.48 101.90 112.50 97.13 133.54 

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

Noncurrent RE loans to RE loans........................ 0.86 0.98 0.79 1.29 0.74 1.12 0.67 0.76 0.55 0.96 0.75 

Equity capital ratio............................................. 8.68 12.35 10.74 9.04 7.46 9.81 10.17 9.16 9.64 8.21 7.12 

Core capital (leverage) ratio.............................. 7.85 11.93 10.13 8.36 6.46 8.73 9.55 8.17 8.89 7.93 6.47 

Gross real estate assets to gross assets............... 77.91 68.19 71.42 72.88 83.11 72.45 72.91 76.01 76.07 66.92 87.09 

Gross 1-4 family mortgages to gross assets......... 47.32 49.32 46.67 38.93 50.63 41.20 47.75 52.67 53.04 36.90 51.96 

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

Structural Changes 

101.34 80.50 84.64 95.66 114.92 82.26 93.29 102.71 100.93 111.83 124.26 

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

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

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

PRIOR FULL YEARS**

 (The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

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

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

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

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

 ................................................1995 1,025.7 46.7 278.5 281.3 419.2 352.3 70.9 169.9 52.2 74.9 305.6

 ................................................1993 1,000.9 53.4 298.8 306.8 341.9 336.6 89.1 150.8 50.9 56.9 316.6 

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

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

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

Net charge-offs to loans & leases (%) 

0.71 1.00 0.93 0.62 0.53 0.68 0.71 0.97 0.98 1.58 0.39 

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

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

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

Noncurrent assets plus 

0.65 0.15 0.29 0.53 1.13 0.68 0.34 0.11 0.15 0.28 1.03 

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

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

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

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

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

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

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

** Data between 1993 and 1995 do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 12 Fourth Quarter 1998 
TABLE IV-B. FOURTH Quarter 1998, FDIC-Insured Savings Institutions 

FOURTH QUARTER Preliminary 

(The way it is...) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- South 

west west West 

1,687 701 841 111 34 656 232 442 125 119 113 

Total assets (in billions).................................... $1,087.7 $36.2 $244.6 $220.3 $586.6 $359.9 $66.2 $176.1 $36.7 $70.4 $378.4 

Total deposits (in billions)................................. 704.5 29.4 189.8 145.8 339.6 259.5 47.6 122.3 26.0 42.8 206.4 

Net income (in millions).................................... 2,034.2 58.0 488.3 555.4 932.5 719.7 94.2 357.5 83.3 204.7 574.7 

% of unprofitable institutions.............................. 9.1 14.7 5.0 4.5 8.8 7.0 12.5 9.0 9.6 10.9 11.5 

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

Performance Ratios (annualized, %) 

51.8 44.8 55.8 64.0 58.8 51.8 54.7 49.8 40.0 56.3 61.9 

Yield on earning assets.................................... 7.42 7.57 7.54 7.68 7.26 7.32 7.56 7.59 7.45 7.71 7.36 

Cost of funding earning assets........................... 4.37 4.20 4.20 4.40 4.44 4.05 4.37 4.52 4.51 4.56 4.55 

Net interest margin.......................................... 3.05 3.36 3.34 3.29 2.82 3.27 3.19 3.08 2.94 3.15 2.80 

Noninterest income to earning assets.................. 0.90 1.02 0.72 1.22 0.86 0.80 1.06 1.09 0.74 1.40 0.82 

Noninterest expense to earning assets.................. 2.69 3.36 2.77 2.87 2.55 2.69 3.21 2.78 2.21 2.87 2.58 

Credit loss provision to assets........................... 0.17 0.14 0.17 0.33 0.12 0.14 0.24 0.26 0.11 0.32 0.13 

Net operating income to assets........................... 0.64 0.53 0.67 0.80 0.58 0.71 0.46 0.64 0.79 0.90 0.55 

Return on assets............................................. 0.76 0.65 0.81 1.03 0.65 0.82 0.58 0.83 0.93 1.20 0.62 

Return on equity............................................. 8.66 5.22 7.56 11.25 8.48 8.22 5.66 8.88 9.43 14.39 8.52 

Net charge-offs to loans and leases..................... 0.23 0.10 0.16 0.27 0.25 0.16 0.19 0.24 0.15 0.38 0.26 

Credit loss provision to net charge-offs*............... 114.06 208.10 160.32 185.69 70.91 138.78 190.39 155.53 100.18 121.66 73.16 

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

Structural Changes (QTR) 

66.02 76.13 67.24 62.25 66.42 63.76 74.39 64.46 58.16 62.08 69.26 

New charters................................................ 7 7 0 0 0 1 4 2 0 0 0 

Thrifts absorbed by mergers........................... 32 10 16 3 3 8 7 10 2 2 3 

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

PRIOR FOURTH QUARTERS**

 (The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%)................................1997 0.93 0.59 0.88 1.12 0.89 1.00 0.64 0.65 0.98 1.35 0.97

 .................................................1995 0.71 0.66 0.81 0.76 0.61 0.83 0.84 0.64 0.79 1.37 0.41

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

Net charge-offs to loans & leases (%)

0.65 0.88 0.76 0.69 0.50 0.89 0.17 0.81 0.83 1.22 0.34 

 .................................................1997 0.25 0.08 0.22 0.38 0.21 0.23 0.47 0.24 0.12 0.68 0.16

 .................................................1995 0.34 0.13 0.21 0.39 0.42 0.41 0.12 0.14 0.17 0.30 0.45

 .................................................1993 0.70 0.18 0.37 0.65 1.08 0.82 0.61 0.11 0.27 0.18 0.96 

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

** Data between 1993 and 1995 do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 

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

Rhode Island, Vermont, U.S. Virgin Islands

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

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

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

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

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

FDIC Quarterly Banking Profile 

Fourth Quarter 1998 13 FDIC-Insured Savings Institutions 
TABLE V-B. Loan Performance, FDIC-Insured Savings Institutions 

December 31, 1998 

Asset Size Distribution Geographical Distribution by Region 

All 

Institutions 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate........................... 0.96 1.90 1.19 0.92 0.82 0.94 1.12 1.02 1.27 1.23 0.85 

Construction, development, and land.................. 1.53 1.92 1.69 1.66 1.25 1.13 1.52 1.84 2.05 1.28 1.79 

Commercial real estate.................................... 0.87 1.49 0.91 0.94 0.71 0.96 1.03 1.01 1.67 0.81 0.52 

Multifamily residential real estate........................ 0.46 1.10 0.76 0.39 0.39 0.57 1.03 0.43 0.45 0.60 0.39 

Home equity loans.......................................... 0.67 0.82 0.85 0.58 0.60 0.90 0.36 0.62 0.25 0.36 0.52 

Other 1-4 Family residential.............................. 1.00 1.99 1.24 0.96 0.87 0.97 1.12 1.03 1.25 1.34 0.93 

Commercial and industrial loans........................... 1.32 2.70 1.55 1.27 1.03 1.23 1.66 1.58 2.07 0.89 1.28 

Loans to individuals............................................. 1.96 2.46 2.01 2.19 1.77 1.85 2.98 1.98 2.00 0.95 2.55 

Credit card loans............................................. 1.79 0.91 3.76 2.65 1.05 1.17 2.64 2.35 2.88 0.64 4.43 

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

Percent of Loans Noncurrent* 

2.01 2.52 1.91 1.96 2.04 2.03 3.04 1.85 1.94 1.22 2.21 

All real estate loans............................................. 0.86 0.98 0.79 1.29 0.74 1.12 0.67 0.76 0.55 0.96 0.75 

Construction, development, and land.................. 1.01 1.44 1.04 1.12 0.86 1.01 0.74 1.81 1.37 0.41 1.01 

Commercial real estate.................................... 1.19 1.17 1.02 1.58 1.03 1.38 1.10 1.17 0.80 1.06 0.95 

Multifamily residential real estate........................ 0.68 0.65 0.72 1.17 0.48 0.99 0.84 0.60 0.43 4.00 0.35 

Home equity loans.......................................... 0.31 0.26 0.46 0.26 0.26 0.39 0.11 0.36 0.12 0.04 0.26 

Other 1-4 Family residential.............................. 0.86 0.95 0.76 1.32 0.77 1.14 0.64 0.71 0.50 0.84 0.80 

Commercial and industrial loans........................... 1.05 1.94 1.44 0.94 0.77 1.09 0.73 1.36 1.21 1.17 0.74 

Loans to individuals............................................. 0.83 1.03 0.91 1.22 0.58 0.78 1.06 0.99 0.70 0.52 0.94 

Credit card loans............................................. 1.32 0.86 2.65 2.19 0.61 0.70 1.37 1.58 1.42 0.66 3.71 

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

Percent of Loans Charged-off (net, YTD) 

0.68 1.04 0.81 0.72 0.57 0.80 1.00 0.77 0.65 0.39 0.44 

All real estate loans............................................. 0.09 0.04 0.05 0.08 0.11 0.09 0.03 0.04 0.04 0.06 0.12 

Construction, development, and land.................. 0.07 0.07 0.06 0.04 0.09 -0.01 0.03 0.16 -0.09 0.01 0.18 

Commercial real estate.................................... 0.05 0.07 0.09 0.09 -0.03 0.06 0.06 -0.03 0.28 0.04 0.04 

Multifamily residential real estate........................ 0.06 0.10 0.05 0.04 0.07 0.04 -0.02 0.03 0.00 0.07 0.08 

Home equity loans.......................................... 0.17 0.01 0.13 0.22 0.19 0.14 0.08 0.09 0.21 0.25 0.36 

Other 1-4 Family residential.............................. 0.09 0.03 0.04 0.08 0.12 0.10 0.02 0.04 0.03 0.07 0.13 

Commercial and industrial loans........................... 0.39 0.30 0.56 0.37 0.29 0.28 0.57 0.36 0.62 0.70 0.33 

Loans to individuals............................................. 1.80 0.53 1.41 1.88 1.99 0.96 5.08 1.78 0.61 1.85 1.84 

Credit card loans............................................. 4.35 1.84 2.96 4.28 4.49 2.25 15.57 5.53 3.96 1.71 4.25 

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

Loans Outstanding (in billions) 

1.01 0.49 1.33 0.88 0.96 0.66 1.05 0.69 0.42 1.98 1.47 

All real estate loans............................................. $643.7 $21.6 $147.1 $118.7 $356.4 $190.1 $39.3 $109.9 $23.1 $36.8 $244.6 

Construction, development, and land.................. 23.4 1.1 7.9 5.9 8.5 4.6 3.4 4.6 1.1 5.1 4.5 

Commercial real estate.................................... 47.6 1.9 15.8 13.6 16.3 21.7 3.3 5.7 1.6 3.7 11.6 

Multifamily residential real estate........................ 54.5 0.6 8.4 12.7 32.8 14.4 0.7 6.3 0.8 1.8 30.4 

Home equity loans.......................................... 16.8 0.4 4.8 3.9 7.7 6.7 1.5 4.2 0.5 0.4 3.5 

Other 1-4 Family residential.............................. 501.3 17.5 110.1 82.6 291.1 142.6 30.3 89.0 19.1 25.8 194.5 

Commercial and industrial loans........................... 21.0 0.7 5.0 6.2 9.1 9.1 1.6 3.0 0.9 2.6 3.8 

Loans to individuals............................................. 52.6 1.6 9.5 14.9 26.6 15.1 3.8 12.7 2.4 8.6 10.0 

Credit card loans............................................. 12.8 0.1 0.5 5.0 7.2 3.2 0.6 3.4 0.2 4.0 1.5 

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

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

39.8 1.5 9.0 9.9 19.4 12.0 3.2 9.3 2.2 4.6 8.5 

All other real estate owned................................. $1,577.9 $39.9 $355.1 $497.6 $685.3 $480.4 $123.3 $211.8 $42.4 $186.6 $533.4 

Construction, development, and land.................. 194.2 5.4 37.0 29.3 122.5 35.2 95.0 21.0 10.0 7.1 25.8 

Commercial real estate.................................... 307.1 6.6 63.5 174.5 62.5 143.4 9.1 44.6 10.6 42.8 56.5 

Multifamily residential real estate........................ 197.2 1.5 81.2 60.1 54.5 52.3 1.4 5.9 0.1 80.4 57.2 

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

Troubled Real Estate Asset Rates*** 

(% of total RE assets) 

934.0 27.0 179.4 249.5 478.1 265.4 42.1 142.9 26.7 57.9 399.1 

All real estate loans............................................. 1.11 1.16 1.03 1.70 0.93 1.37 0.98 0.95 0.74 1.46 0.97 

Construction, development, and land.................. 1.83 1.92 1.50 1.60 2.27 1.77 3.41 2.26 2.23 0.54 1.57 

Commercial real estate.................................... 1.83 1.53 1.41 2.85 1.41 2.03 1.38 1.95 1.44 2.23 1.44 

Multifamily residential real estate........................ 1.04 0.90 1.67 1.64 0.64 1.35 1.03 0.69 0.44 8.04 0.54 

1-4 family residential....................................... 1.02 1.09 0.90 1.55 0.91 1.28 0.75 0.85 0.63 1.05 0.99 

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

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 14 Fourth Quarter 1998 
ALL FDIC-INSURED INSTITUTIONS 

• Quarterly Increase In Insured Deposits Is The Largest Ever Reported 

• Deposit Growth Drives BIF Reserve Ratio Down To 1.38 Percent 

• SAIF Reserve Ratio Is Unchanged At 1.39 Percent, Pending Special Reserve 

Fueled by a sharp increase in deposits, the total assets 

of the nation’s 10,461 FDIC-insured institutions 

increased by $202 billion, or 3.2 percent, during the 

fourth quarter of 1998. Total deposits rose by $183 billion (4.3 percent) during the quarter, including increases of $85 billion (3.1 percent) in estimated insured 

deposits, $81 billion (9.1 percent) billion in uninsured 

domestic deposits and $17 billion (3.1 percent) in foreign-office deposits. Fourth-quarter growth in assets 

and insured deposits has been a seasonal phenomenon in each of the seven years since the 1990-1991 

recession, but growth rates in the fourth quarter of 

1998 far exceeded those of the preceding years. In 

addition, this was the largest one-quarter increase in 

insured deposits since quarterly reporting was adopted 

in 1991. 

The bulk of the growth in insured deposits occurred in 

deposits insured by the Bank Insurance Fund (BIF). 

BIF-insured deposits grew nearly $75 billion from 

September 30 to December 31, a rise of 3.6 percent. 

For all of 1998, BIF-insured deposits increased by $85 

billion, or 4.1 percent. The balance of the BIF (unaudited) was $29.6 billion as of December 31, compared 

to $29.1 billion on September 30 and $28.3 billion at 

the end of 1997. Despite this growth in the fund, the 

BIF reserve ratio – the ratio of the fund to insured 

deposits – fell from 1.41 percent on September 30 to 

1.38 percent at year-end 1998. 

Deposits insured by the Savings Association Insurance 

Fund (SAIF) grew more slowly in the fourth quarter of 

1998, rising $10 billion, or 1.4 percent. This was 

approximately half of the increase for all of 1998, during which SAIF-insured deposits grew by $19 billion, or 

2.8 percent. The balance of the SAIF increased modestly to $9.8 billion as of December 31 (unaudited), 

yielding a reserve ratio of 1.39 percent, which is 

unchanged from September 30. However, the Deposit 

Insurance Funds Act of 1996 required the creation of a 

SAIF Special Reserve as of January 1, 1999. On that 

date, the amount in the SAIF above the designated 

reserve ratio of 1.25 percent was moved into the 

Special Reserve, which is excluded from the reserve 

ratio calculation and available for insurance purposes 

only under certain adverse conditions. Thus, effective 

January 1, the Special Reserve totaled approximately 

$978 million, reducing the SAIF balance to $8.862 billion and the SAIF reserve ratio to 1.25 percent. 

There were no failures of insured institutions in the 

fourth quarter of 1998. For the full year, three institutions failed, all of which were BIF-member commercial 

banks, with aggregate assets of $371 million. 

QUARTERLY CHANGE IN INSURED DEPOSITS, 1997–1998 

Bank Insurance Fund Savings Association Insurance Fund 

$ Millions $ Millions 

31,703 

19,570 

-3,945 -5,435 

74,520 

12/97 3/98 6/98 9/98 12/98 

0

20 

40 

60 

80 

0 

2,871 

11,297 

-3,468 

1,194 

10,021 

12/97 3/98 6/98 9/98 12/98 

-5 

0

5 

10 

15 

0 

FDIC Quarterly Banking Profile 

Fourth Quarter 1998 15 All FDIC-Insured Institutions 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(dollar figures in millions) 1998 1997 1996 1995 1994 1993 1992 

Number of institutions reporting................................. 10,461 10,922 11,452 11,970 12,603 13,220 13,852 

Total assets......................................................... $ 6,528,627 $6,041,131 $5,606,608 $5,338,418 $5,019,085 $4,707,056 $4,535,877 

Total deposits...................................................... 4,386,053 4,125,862 3,925,058 3,769,480 3,611,618 3,528,486 3,527,033 

Number of problem institutions................................. 84 92 117 193 318 572 1,063 

Assets of problem institutions (in billions)..................... $11 $6 $12 $31 $73 $334 $592 

Number of failed/assisted institutions........................ 3 1 6 8 15 50 181 

Assets of failed/assisted institutions (in billions)............ $0.37 $0.03 $0.22 $1.21 $1.57 $9.67 $88 

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

(dollar figures in millions) 

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

Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

1998 1998 1997 97:4-98:4 

 10,461 10,623 10,922 -4.2 

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

CONDITION DATA 

1,860,787 1,842,656 1,783,256 4.3 

Total assets........................................................................ $6,528,628 $6,325,984 $6,041,132 8.1

 Loans secured by real estate............................................. 1,989,152 1,934,693 1,875,895 6.0 

1-4 Family residential...................................................... 1,283,336 1,249,987 1,225,756 4.7 

Home equity loans......................................................... 113,459 114,236 115,620 -1.9 

Multifamily residential property.......................................... 97,165 96,814 98,843 -1.7 

Commercial real estate................................................... 418,618 403,971 387,902 7.9 

Construction, development, and land................................. 130,085 125,063 108,009 20.4 

Other real estate loans................................................... 59,948 58,859 55,384 8.2 

Commercial & industrial loans 919,808 893,311 812,125 13.3

 Loans to individuals......................................................... 623,700 606,026 609,039 2.4

 Credit cards & related plans............................................. 241,796 227,289 242,535 -0.3

 Other loans & leases......................................................... 431,039 423,671 377,116 14.3

 Less: Unearned income & contra accounts........................ 4,231 4,357 4,684 -9.7

 Total loans & leases......................................................... 3,959,467 3,853,344 3,669,491 7.9

 Less: Reserve for losses................................................... 64,201 64,230 61,664 4.1 

Net loans and leases............................................................ 3,895,267 3,789,113 3,607,827 8.0 

Securities........................................................................... 1,248,899 1,178,142 1,120,549 11.5 

Other real estate owned...................................................... 4,725 5,059 5,877 -19.6 

Goodwill and other intangibles................................................ 94,372 91,126 72,685 29.8 

All other assets.................................................................. 1,285,364 1,262,544 1,234,194 4.1 

Total liabilities and capital...................................................... 6,528,628 6,325,984 6,041,132 8.1

 Deposits....................................................................... 4,386,054 4,203,549 4,125,863 6.3

 Other borrowed funds......................................................... 1,170,590 1,151,606 1,039,314 12.6

 Subordinated debt............................................................ 75,599 71,647 64,951 16.4

 All other liabilities............................................................... 339,733 346,727 303,719 11.9

 Equity capital.................................................................. 556,652 552,454 507,286 9.7 

Loans and leases 30-89 days past due.................................... 48,359 45,078 47,180 2.5 

Noncurrent loans and leases................................................ 37,484 35,837 36,165 3.6 

Restructured loans and leases............................................. 4,279 4,625 5,844 -26.8 

Direct and indirect investments in real estate........................... 1,095 1,077 1,256 -12.9 

Mortgage-backed securities................................................... 677,262 626,016 564,776 19.9 

Earning assets.................................................................. 5,687,815 5,515,839 5,270,995 7.9 

Unused loan commitments................................................... 3,912,660 3,796,960 3,207,100 22.0 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

Preliminary Preliminary 

Full Year Full Year 4th Quarter 4th Quarter %Change 

1998 1997 %Change 1998 1997 97:4-98:4 

$433,132 $408,722 6.0 $109,927 $107,113 2.6 

221,179 205,600 7.6 55,332 54,902 0.8

211,953 203,122 4.3 54,595 52,212 4.6 

23,982 22,035 8.8 5,996 6,132 -2.2 

132,946 111,527 19.2 36,663 29,241 25.4 

217,592 191,056 13.9 61,538 50,341 22.2 

5,583 3,102 80.0 1,612 1,426 13.1 

37,255 36,726 1.4 8,330 8,825 -5.6 

426 14 N/M -74 3 N/M

72,078 67,950 6.1 16,931 17,582 -3.7 

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

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 16 Fourth Quarter 1998 
 

 

 

 

0 

TABLE III-C. Selected Insurance Fund Indicators 

(dollar figures in millions) Preliminary 

4th Quarter 3rd Quarter 4th Quarter %Change 

1998 1998 1997 97:4-98:4 

Bank Insurance Fund* 

Reserve ratio (%)**.................................................................. 1.38 1.41 1.38 0.0 

Fund balance (unaudited)......................................................... $29,612 $29,101 $28,293 4.7 

Estimated insured deposits...................................................... 2,141,268 2,066,748 2,056,558 4.1 

SAIF-member Oakars............................................................ 38,863 35,116 30,962 25.5 

BIF-members........................................................................ 2,102,405 2,031,632 2,025,596 3.8 

Assessment base..................................................................... 2,996,396 2,832,452 2,786,250 7.4 

SAIF-member Oakars............................................................ 41,015 36,517 32,647 25.6 

BIF-members........................................................................ 2,955,381 2,795,934 2,753,603 7.3 

Savings Association Insurance Fund 

Reserve ratio (%)**.................................................................. 1.39 1.39 1.36 2.2 

Fund balance (unaudited)......................................................... $9,840 $9,731 $9,368 5.0 

Estimated insured deposits...................................................... 708,959 698,938 689,915 2.8 

BIF-member Oakars............................................................... 256,894 277,286 246,285 4.3 

SAIF-member Sassers......................................................... 64,219 61,970 60,424 6.3 

Other SAIF members............................................................ 387,846 359,682 383,207 1.2 

Assessment base..................................................................... 751,413 738,468 721,132 4.2 

BIF-member Oakars............................................................... 257,990 279,463 246,696 4.6 

SAIF-member Sassers......................................................... 70,984 68,157 65,473 8.4 

Other SAIF members............................................................ 422,439 390,848 408,964 3.3 

* Includes U.S. branches of foreign banks. 

** Fund balance as a percent of estimated insured deposits. 

Insurance Fund Reserve Ratios* Fund Balance and Insured Deposits* 

Percent of Insured Deposits ($ Millions) 

BIF Fund BIF-Insured SAIF Fund SAIF-Insured 

Balance Deposits Balance Deposits 

1.25 

12/91 -7,028 1,957,722 101 776,351 

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

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

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

12/95 25,454 1,951,963 3,358 711,897 

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

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

3/98 28,559 2,076,128 9,484 701,212 

6/98 28,931 2,071,753 9,610 697,386 

9/98 29,101 2,066,748 9,731 698,915 

12/98 29,612 2,141,268 9,840 708,959 

* Insurance fund balance as a percent of total insured deposits. * Insured deposit amounts are estimates. 1998 fund balance amounts are unaudited. 

** Effective January 1, 1999, approximately $978 million was moved to a SAIF Special 

 Reserve, reducing the SAIF reserve ratio to 1.25 percent. 

TABLE IV-C. Closed/Assisted Institutions 

-0.36 

0.69 

1.30 1.34 1.38 1.38 1.41 

0.01 0.04 

1.38 

1.40 

-0.01 

1.15 

1.39** 

1.36 1.30 1.35 1.38 1.39 

0.28 

0.47 

0.17 

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

BIF 

SAIF 

Target Ratio 

(dollar figures in millions) 

BIF Members 

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

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

SAIF Members 

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

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

1998 

3 

$371 

0 

$0 

1997 1996 1995 1994 1993 1992 

1 

$27 

0 

$0 

5 

$186 

1 

$34 

6 

$758 

2 

$456 

13 41 122 

$1,432 $3,539 $44,232 

2 9 

$137 $6,132 $44,197 

FDIC Quarterly Banking Profile 

Fourth Quarter 1998 17 All FDIC-Insured Institutions 

59 
 

 

 

 

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

(dollar figures in millions) 1998 1997 1996 1995 1994 1993 1992 

BIF Members 

Number of institutions reporting................................................ 9,031 9,404 9,823 10,243 10,760 11,291 11,813 

BIF-member Oakars............................................................ 730 778 793 807 719 570 485 

Other BIF-members............................................................... 8,301 8,626 9,030 9,436 10,041 10,721 11,318 

Total assets...........................................................................$ 5,700,851 $5,285,407 $4,857,760 $4,577,897 $4,248,300 $3,949,694 $3,711,611 

Total deposits........................................................................ 3,843,776 3,611,453 3,404,203 3,225,649 3,062,717 2,951,979 2,873,168 

Net income........................................................................... 64,469 61,463 54,483 50,779 46,882 44,498 33,318 

Return on assets (%)............................................................... 1.18 1.22 1.17 1.15 1.14 1.17 0.92 

Return on equity (%)............................................................... 13.83 14.44 14.14 14.32 14.43 14.89 12.72 

Noncurrent assets plus OREO to assets (%)................................. 0.64 0.67 0.77 0.89 1.06 1.69 2.64 

Number of problem institutions................................................... 68 73 86 151 264 472 856 

Assets of problem institutions................................................... $5,326 $4,598 $6,624 $20,166 $42,311 $269,159 $463,803 

Number of failed/assisted institutions.......................................... 3 1 5 6 13 41 122 

Assets of failed/assisted institutions............................................. $371 $27 $182 $753 $1,392 $3,539 $45,391 

SAIF Members 

Number of institutions reporting................................................ 1,430 1,518 1,629 1,727 1,843 1,929 2,039 

SAIF-member Oakars............................................................ 109 112 94 77 55 28 9 

Other SAIF-members............................................................ 1,321 1,406 1,535 1,650 1,788 1,091 2,030 

Total assets........................................................................... $827,775 $755,724 $748,847 $760,520 $770,785 $757,361 $824,266 

Total deposits........................................................................ 542,277 514,408 520,854 543,831 548,900 576,506 653,865 

Net income........................................................................... 7,609 6,485 4,883 5,584 4,101 5,380 5,359 

Return on assets (%)............................................................... 0.98 0.94 0.67 0.76 0.56 0.72 0.66 

Return on equity (%)............................................................... 11.36 11.13 8.07 9.47 7.16 9.74 9.78 

Noncurrent assets plus OREO to assets (%)................................. 0.80 0.98 1.07 1.12 1.23 1.85 2.74 

Number of problem institutions................................................... 16 19 31 42 54 100 207 

Assets of problem institutions................................................... $5,992 $1,662 $5,548 $10,846 $30,336 $64,973 $127,838 

Number of failed/assisted institutions.......................................... 0 0 1 2 2 9 59 

Assets of failed/assisted institutions............................................. $0 $0 $35 $426 $129 $6,105 $44,197 

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

Excludes one self-liquidating institution. 

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

(dollar figures in millions) 

December 31, 1998 

Commercial Banks and Savings Institutions 

Number of Total Domestic 

Institutions Assets Deposits 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks............................................. 8,774 $5,440,943 $3,109,500 $1,948,444 $257,951 $2,206,395 

BIF-member..................................................................... 8,671 5,370,156 3,060,394 1,934,070 231,289 2,165,360 

SAIF-member.................................................................. 103 70,788 49,106 14,374 26,662 41,035 

FDIC-Supervised............................................................... 5,321 947,473 718,207 497,748 57,646 555,395 

OCC-Supervised............................................................... 2,459 3,183,118 1,785,843 1,121,390 150,918 1,272,309 

Federal Reserve-Supervised................................................ 994 1,310,353 605,450 329,305 49,386 378,691 

FDIC-Insured Savings Institutions............................................. 1,687 1,087,684 704,531 191,232 451,009 642,240 

OTS-Supervised Savings Institutions....................................... 1,143 817,223 510,313 67,514 397,891 465,405 

BIF-member..................................................................... 38 116,443 58,131 44,030 10,045 54,075 

SAIF-member.................................................................. 1,105 700,780 452,182 23,484 387,846 411,330 

FDIC-Supervised State Savings Banks.................................... 544 270,461 194,218 123,718 53,117 176,835 

BIF-member..................................................................... 322 214,253 153,228 122,712 15,560 138,272 

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

Total Commercial Banks and 

 222 56,208 40,990 1,006 37,558 38,563 

Savings Institutions................................................... 10,461 6,528,628 3,814,031 2,139,676 708,959 2,848,635 

BIF-member........................................................................ 9,031 5,700,852 3,271,754 2,100,813 256,894 2,357,706 

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

Other FDIC-Insured Institutions 

 1,430 827,776 542,278 38,863 452,066 490,929 

U.S. Branches of Foreign Banks............................................. 25 9,116 2,924 1,592 0 1,592 

Total FDIC-Insured Institutions....................................... 10,486 6,537,744 3,816,955 2,141,268 708,959 2,850,227 

* Excludes $572 billion in foreign office deposits, which are uninsured. 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 18 Fourth Quarter 1998 
TABLE VII-C. Assessment Base Distribution and Rate Schedules 

BIF Assessment Base Distribution 

Assessable Deposits in Millions as of December 31, 1998 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 1999 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

 8,602 

 2,931,749 

 111 

 17,655 

 5 

 398 

95.0% 

97.8% 

1.2% 

0.6% 

0.1% 

0.0% 

261 2.9% 

40,714 1.4% 

14 0.2% 

1,436 0.1% 

2 0.0% 

228 0.0% 

36 

1,954 

14 

1,734 

11 

528 

0.4% 

0.1% 

0.2% 

0.1% 

0.1% 

0.0% 

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

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

by on-site examinations. 

SAIF Assessment Base Distribution 

Assessable Deposits in Millions as of December 31, 1998 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 1999 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

 1,322 

 721,969 

 17 

 4,419 

 2 

 411 

92.4% 

96.1% 

1.2% 

0.8% 

0.1% 

0.1% 

64 4.5% 

19,426 2.6% 

4 0.3% 

235 0.0% 

1 0.1% 

78 0.0% 

14 

4,446 

4 

297 

2 

134 

1.1% 

0.6% 

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 1999 Assessment Period 

Cents Per $100 of Assessable Deposits 

Capital Group 

Supervisory Risk Subgroup 

A B C 

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

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

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

 0 

 3 

 10 

3 

10 

24 

17 

24 

27 

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

Currently, the rate schedules are identical 

FDIC Quarterly Banking Profile 

Fourth Quarter 1998 19 All FDIC-Insured Institutions 
Number of FDIC-Insured “Problem” Institutions 

1993-1998 

Number of Institutions 

700 

600 

500 

400 

300 

200 

100 

0 

12/9312/94 12/95 3/96 6/96 9/96 12/96 3/97 6/97 9/97 12/97 3/98 6/98 9/98 12/98 

Savings Institutions 146 71 49 42 38 36 35 35 29 27 21 16 18 18 15 

Commercial Banks 426 247 144 127 99 89 82 77 74 71 71 68 64 70 69 

572 

318 

193 

169 

137 125 117 112 103 98 92 84 82 88 84 

Assets of FDIC-Insured “Problem” Institutions 

1993-1998 $ Billions 

400 

300 

200 

100 

0 

12/93 12/9412/95 3/96 6/96 9/96 12/96 3/97 6/97 9/97 12/97 3/98 6/98 9/98 12/98 

$334 

$72 

$31 $26 $18 $15 $12 $10 $8 $7 $7 $7 $8 $8 $11 

Savings Institutions 92 39 14 13 10 8 7 5 3 2 2 2 3 3 6 

Commercial Banks 242 33 17 13 8 7 5 5 5 5 5 5 5 5 5 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 20 Fourth Quarter 1998