Donna Tanoue, Chairman 

First Quarter 1998 COMMERCIAL BANKING PERFORMANCE — FIRST QUARTER 1998 

• Industry Registers Fifth Consecutive Quarterly Earnings Record 

• Net Income of $15.9 Billion Exceeds Previous Record by $621 Million 

• Noninterest Income, One-Time Gains Lift Industry Profits 

• Net Interest Margins Decline for Fifth Time in Last Six Quarters 

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

For the fifth consecutive quarter, insured commercial banks reported a new earnings record. 

Bank profits in the first quarter totaled $15.9 billion, an increase of $621 million (4.1 percent) 

over the previous record, set in the fourth quarter of 1997, and a $1.5-billion (10.1 percent) improvement over year-earlier results. The 

industry’s return on average assets (ROA) rose 

to 1.26 percent, compared to 1.24 percent in the 

fourth quarter of 1997 and 1.25 percent in the 

first quarter of 1997. More than two out of every 

three banks (67.0 percent) reported an ROA of 1 

percent or higher in the first quarter, and almost 

as many (63.6 percent) reported higher earnings than a year ago. The earnings strength can 

be traced to several familiar sources: continued 

strong asset expansion, a growing contribution 

from noninterest revenue sources, and mostly 

favorable asset quality. In addition, the industry’s net income received a boost of more than 

Quarterly Net Income, 1994–1998 

$ Billions 

15 

10 

5 

0 

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

11.1 11.2 

11.8 

10.7 11.1 

12.0 

13.8 

12.0 12.0 

13.8 13.2 13.7 

14.5 14.6 14.7 15.3 15.9 

Net Operating Income 

Securities and Other Gains, Net 

1994 1995 1996 1997 1998 

$1 billion from nonrecurring gains. As has been 

the case in recent quarters, the improvement in 

earnings was limited by declining net interest 

margins, rising credit-loss provisions and higher 

noninterest expenses related to mergers and 

holding company restructurings. 

Noninterest Income Provides a Growing Proportion 

of Bank Income, 1984–1998 

Quarterly Noninterest Income, % of Net Operating Revenue* 

20 

25 

30 

35 

40 

24.7 

39.7 

1984 1986 1988 1990 1992 1994 1996 1998 

*Net operating revenue equals net interest income plus noninterest income. 

Noninterest income of $29.2 billion was $4.6 billion (18.8 percent) higher than a year ago. Revenues from trust activities and other fee income 

registered especially strong growth. Net interest 

income was $2.2 billion (5.2 percent) higher, although the average net interest margin was 16 

basis points lower (4.06 percent versus 4.22 

percent). The improvement in net interest income was the result of a 9.9-percent increase in 

interest-earning assets in the twelve-month period ending March 31, 1998. Sales of securities 

contributed $382 million (92.5 percent) more to 

banks’ pre-tax revenues than a year earlier, 

Requests for copies of and subscriptions to the FDIC Quarterly Banking Profile should be made through the FDICTMs 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 FDICTMs Institution Directory (I.D.) System on this Web site.
while extraordinary gains were $530 million higher. 1 depository institutions registered a seasonal decline of 

Together, these nonrecurring items, most of which $24.5 billion (6.9 percent). 

were concentrated in a few large institutions, added 

$1.1 billion to banks’ bottom–line profits in the first 

quarter, and were responsible for slightly more than 

half — $777 million — of the year-to-year increase in 

industry earnings. The earnings improvement would 

have been greater but for a $5.4-billion (13.3 percent) 

increase in noninterest expenses, a $673-million (15.7 

percent) rise in credit-loss provisions, and a $580-

million (24.8 percent) decline in income from international operations. Almost half of the increase in creditloss provisions ($336 million) was earmarked for 

banks’ international loans. At least $1.4 billion of the 

increase in noninterest expenses consisted of charges 

related to bank mergers or restructurings. 

Quarterly Net Interest Margins, 1994–1998 

Net Interest Margin (%) 

4.0 

4.5 

5.0 

Assets < $100 Million 

Assets > $100 Million 

4.59% 

4.03% 

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

Deposits posted strong growth for a second consecutive quarter. Following a $116.8-billion increase in the 

fourth quarter of 1997, commercial bank deposits increased by an additional $46.1 billion (1.3 percent) in 

the first quarter, a period that typically experiences a 

net deposit decline in most years. Most of the growth 

occurred in domestic office deposits. Demand deposits had a seasonal decline of $23.8 billion, but savings 

deposits increased by $44.4 billion, and largedenomination ($100,000 or more) time deposits increased by $20.4 billion. In contrast, deposits in foreign offices increased by only $2.4 billion. Over the 

past twelve months, commercial bank deposits have 

increased by $273.4 billion (8.6 percent). 

Asset-quality indicators remain favorable for most loan 

categories. Noncurrent loans (loans 90 days or more 

past due or in nonaccrual status) increased by $945 

million during the first quarter, and the percent of 

banks’ loans that were noncurrent rose slightly, to 0.98 

percent from 0.96 percent at the end of 1997. This is 

still the second-lowest noncurrent rate for the industry 

in the 17 years that banks have reported these data. A 

year ago, the industry’s noncurrent rate was 1.05 percent. Noncurrent commercial and industrial loans increased by $1.1 billion during the quarter; this was the 

only loan category to show a significant increase. Although the noncurrent rate on commercial and industrial loans rose to 0.96 percent from 0.85 percent at the 

end of 1997, it remained lower than a year ago, when it 

was 0.97 percent. 

1994 1995 1996 1997 1998 

Total assets of commercial banks increased by $96.3 

billion (1.9 percent) during the first quarter. Loan 

growth accounted for $52.1 billion of the increase in industry assets. Commercial and industrial loans rose 

by $24.2 billion (3.0 percent), while banks’ holdings of 

residential mortgage loans increased by $19.6 billion 

(3.2 percent). Credit-card loans declined by $19.4 billion (8.4 percent), but most of the decline was attributable to a $18.6-billion increase in securitized creditcard receivables sold off-balance-sheet. The amount 

of credit-card loans that have been securitized and 

sold off-balance-sheet, at $209.4 billion, is now almost 

equal to the $211.8 billion in credit-card loans that remain on-balance-sheet. Banks increased their securities holdings by $33.5 billion (3.8 percent), with 

mortgage-backed securities increasing by $18.3 billion (4.8 percent). Cash and balances due from other 

1 Advanta National Bank reported a $536-million extraordinary gain in

the first quarter on the sale of its credit-card operation to Fleet National

Bank.

Credit-Card Loss Rates and Personal Bankruptcy Filings, 

1984–1998 

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

7 400 

Personal 

0 

1 

2 

3 

4 

5 

6 

50 

100 

150 

200 

250 

300 

Bankruptcy 350 

Filings 

Credit Card Charge-Off Rates 

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

1984 1986 1988 1990 1992 1994 1996 1998 

Sources: Bankruptcies - Administrative Office of the United States Courts 

Charge-Off Rates - Commercial Bank Call Reports 

Net loan charge-offs in the first quarter totaled $4.8 billion, an increase of $761 million (18.8 percent) over the 

same period in 1997. The average annualized net 

FDIC Quarterly Banking Profile

FDIC-Insured Commercial Banks 2 First Quarter 1998
*

charge-off rate for the quarter was 0.64 percent, the 

highest rate in a first quarter since 1993. Commercial 

and industrial loans and credit-card loans posted the 

largest increases in net charge-offs compared to the 

first quarter of 1997. Net charge-offs on commercial 

and industrial loans totaled $583 million, an increase 

of $265 million (83.1 percent) from the first quarter of 

1997. Net charge-offs on credit-card loans rose to $3.0 

billion, an increase of $239 million (8.7 percent). The 

annualized net charge-off rate on credit-card loans 

rose to an all-time high of 5.40 percent in the first quarter, surpassing the previous record level of 5.37 percent, set in the third quarter of 1997. Credit-card 

charge-offs accounted for 62.3 percent of all loan 

charge-offs taken by commercial banks in the quarter. 

Despite the rising trend in credit-card loan losses, 

credit-card lending remains one of banks’ most profitable lending areas, because of the high average interest rates on credit-card loans and the high level of 

noninterest income that credit-card portfolios generate. 

Commercial bank reserves increased by $518 million 

in the first quarter, but the industry’s “coverage ratio” of 

reserves to noncurrent loans and its “reserve ratio” of 

reserves to total loans both declined, because of 

growth in noncurrent loans and total loans outstanding. After reaching a record high level of $1.92 in reserves for every $1.00 in noncurrent loans at the end of 

1997, the coverage ratio declined to $1.87 at the end of 

March. The reserve ratio declined slightly during the 

quarter, from 1.84 percent at year-end 1997 to 1.83 

percent at the end of March. This decline continues a 

trend of several years’ duration, as the industry’s reserve ratio has declined in 19 of the past 20 quarters. 

Capital Ratios, 1992–1998 Ratios (%) 

6 

8 

10 

12 

14 

Tier 1 Risk-Based Capital 

Equity to Assets 

Total Risk-Based Capital 

Core Capital (Leverage) 

1992 1993 1994 1995 1996 1997 1998 

Equity capital rose by $12.0 billion in the first quarter, to 

8.41 percent of industry assets, from 8.33 percent at 

year-end 1997. Merger and acquisition activity contributed $3.4 billion in goodwill, and other intangible assets added an additional $1.1 billion. Because so 

much of the increase in equity consisted of intangible 

assets, the rise in the industry’s equity capital ratio was 

not matched by a rise in the core capital (leverage) ratio, which excludes many intangible assets. It remained unchanged, at 7.56 percent. The industry’s 

risk-based capital ratios registered modest increases 

in the first quarter after reaching five-year lows at the 

end of 1997. 

Bank Mergers: Acquisitions vs. Consolidations,* 

1994–1998 

Number of Banks Absorbed 

1994 1995 1996 1997 1998 

0 

50 

100 

150 

Consolidations 

Acquisitions 

72 

64 

*Acquisitions = Change in holding company ownership within 12 months of merger. 

Consolidations = No change in ownership within 12 months of merger. 

The number of commercial banks reporting financial 

results declined by 120 institutions during the first 

quarter. There were 27 new banks chartered in the 

quarter, and 146 banks were absorbed by mergers. 

Three commercial banks converted to thrift charters, 

while three savings institutions and one noninsured institution converted to commercial bank charters. No insured commercial banks failed during the quarter. The 

number of commercial banks on the FDIC’s “Problem 

List” declined to 67 banks with $4.8 billion in assets, 

from 71 banks with $4.6 billion in assets at year-end 

1997. 

FDIC Quarterly Banking Profile

First Quarter 1998 3 FDIC-Insured Commercial Banks
TABLE I-A. Selected Indicators, FDIC-Insured Commercial Banks 

1998* 1997* 1997 1996 1995 1994 1993 

Return on assets (%)................................................ 1.26 1.25 1.23 1.19 1.17 1.15 1.20 

Return on equity (%)................................................. 15.02 15.10 14.69 14.45 14.66 14.61 15.34 

Core capital (leverage) ratio (%)............................... 7.56 7.78 7.56 7.64 7.61 7.64 7.65 

Noncurrent assets plus

 other real estate owned to assets (%).................... 0.67 0.73 0.66 0.75 0.85 1.01 1.61 

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

Asset growth rate (%)................................................ 10.12 7.73 9.54 6.16 7.53 8.21 5.72 

Net interest margin (%)............................................. 4.06 4.22 4.21 4.27 4.29 4.36 4.40 

Net operating income growth (%)............................. 4.79 21.90 12.53 6.43 7.48 16.18 35.36 

Number of institutions reporting................................ 9,024 9,451 9,144 9,528 9,940 10,451 10,958 

Percentage of unprofitable institutions...................... 4.45 4.00 4.70 4.28 3.55 3.98 4.89 

Number of problem institutions................................. 67 77 71 82 144 247 426 

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

Number of failed/assisted institutions....................... 0 0 1 5 6 11 42 

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

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

(dollar figures in millions) 

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

Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

1998 1997 1997 97:1-98:1 

9,024 9,144 9,451 -4.5 

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

CONDITION DATA 

1,557,162 1,537,447 1,496,297 4.1 

Total assets............................................................................. $5,111,230 $5,014,919 $4,641,453 10.1

 Loans secured by real estate............................................ 1,272,719 1,243,716 1,156,404 10.1

 Commercial & industrial loans........................................... 820,129 795,890 731,363 12.1

 Loans to individuals........................................................... 542,277 561,454 543,837 -0.3

 Farm loans........................................................................ 43,065 44,883 39,326 9.5

 Other loans & leases......................................................... 349,404 329,179 306,246 14.1

 Less: Unearned income.................................................... 4,379 4,524 5,119 -14.5

 Total loans & leases............................................................ 3,023,214 2,970,597 2,772,057 9.1

 Less: Reserve for losses..................................................... 55,275 54,757 53,516 3.3

 Net loans & leases................................................................ 2,967,939 2,915,839 2,718,541 9.2

 Securities............................................................................... 905,415 871,896 813,103 11.4

 Other real estate owned........................................................ 3,733 3,792 4,660 -19.9

 Goodwill and other intangibles.............................................. 66,205 61,701 55,259 19.8

 All other assets...................................................................... 1,167,939 1,161,690 1,049,890 11.2 

Total liabilities and capital....................................................... 5,111,230 5,014,919 4,641,453 10.1

 Noninterest-bearing deposits................................................ 665,331 676,320 633,522 5.0

 Interest-bearing deposits....................................................... 2,802,512 2,745,379 2,560,875 9.4

 Other borrowed funds............................................................ 856,618 823,024 753,683 13.7

 Subordinated debt................................................................. 66,177 61,989 52,331 26.5

 All other liabilities................................................................... 290,646 290,213 250,890 15.8

 Equity capital......................................................................... 429,947 417,993 390,153 10.2 

Loans and leases 30-89 days past due.................................. 38,884 39,048 38,108 2.0 

Noncurrent loans and leases.................................................. 29,492 28,547 29,094 1.4 

Restructured loans and leases................................................ 2,103 2,472 3,521 -40.3 

Direct and indirect investments in real estate......................... 549 659 669 -17.9 

1-4 Family residential mortgages............................................ 736,911 718,728 665,525 10.7 

Mortgage-backed securities.................................................... 402,427 384,142 341,960 17.7 

Earning assets......................................................................... 4,415,030 4,311,111 4,017,230 9.9 

Long-term assets (5+ years)................................................... 837,535 777,193 691,056 21.2 

Volatile liabilities...................................................................... 1,649,121 1,600,763 1,460,889 12.9 

Foreign office deposits............................................................ 528,573 526,195 475,871 11.1 

Unused loan commitments...................................................... 3,270,614 3,085,861 2,696,789 21.3 

Off-balance-sheet derivatives................................................. 26,726,727 25,380,345 22,354,356 19.6 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary 

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

1997 1996 %Change 1998 1997 97:1-98:1 

$339,551 $312,744 8.6 $88,580 $80,821 9.6 

165,042 149,989 10.0 44,254 38,700 14.4

174,510 162,755 7.2 44,326 42,121 5.2 

19,830 16,285 21.8 4,961 4,288 15.7 

104,504 93,569 11.7 29,237 24,604 18.8 

169,972 160,698 5.8 45,771 40,382 13.3 

1,844 1,114 65.6 795 413 92.3 

31,884 28,191 13.1 8,241 8,009 2.9 

19 88 N/M 537 7 N/M

59,191 52,351 13.1 15,923 14,467 10.1 

18,309 15,501 18.1 4,804 4,043 18.8 

42,507 38,787 9.6 10,869 8,492 28.0

57,962 51,510 12.5 14,868 14,189 4.8

 N/M - Not meaningful 
 

 

 

 

TABLE III-A. First Quarter 1998, FDIC-Insured Commercial Banks 

FIRST QUARTER Preliminary 

 (The way it is . . . ) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

9,024 5,743 2,918 298 65 708 1,479 1,971 2,309 1,580 977 

Total assets (in billions)............................ $5,111.2 $263.9 $729.2 $901.4 $3,216.8 $1,895.8 $1,017.0 $814.2 $336.7 $363.3 $684.2 

Total deposits (in billions)......................... 3,467.8 226.7 603.5 618.7 2,018.9 1,160.0 675.1 580.8 254.7 296.2 501.1 

Net income (in millions)............................. 15,923 786 2,464 3,853 8,820 5,620 2,898 2,674 1,237 1,085 2,408 

% of unprofitable institutions..................... 4.5 6.2 1.3 1.3 1.5 3.8 4.7 3.7 3.6 4.5 8.0 

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

Performance Ratios (annualized, %) 

63.6 58.9 71.7 73.5 73.8 69.8 64.8 62.8 61.2 61.2 68.9 

Yield on earning assets............................. 8.12 8.30 8.27 8.53 7.94 8.05 7.99 8.06 8.50 7.67 8.63 

Cost of funding earning assets................. 4.06 3.72 3.69 3.88 4.23 4.52 3.89 3.98 3.86 3.52 3.56 

Net interest margin.................................... 4.06 4.59 4.57 4.66 3.71 3.53 4.11 4.08 4.64 4.16 5.07 

Noninterest income to earning assets...... 2.68 1.38 1.78 2.95 2.94 3.34 2.17 1.95 2.49 2.13 2.99 

Noninterest expense to earning assets.... 4.20 3.95 3.89 4.28 4.27 4.46 4.06 3.54 4.08 4.07 4.66 

Credit loss provision to assets.................. 0.39 0.20 0.26 0.73 0.34 0.40 0.27 0.31 0.52 0.20 0.68 

Net operating income to assets................ 1.17 1.19 1.35 1.45 1.06 1.03 1.11 1.30 1.47 1.19 1.37 

Return on assets....................................... 1.26 1.20 1.37 1.72 1.11 1.19 1.16 1.32 1.48 1.21 1.41 

Return on equity........................................ 15.02 11.00 14.24 18.30 14.58 16.18 13.24 15.59 16.23 13.92 14.32 

Net charge-offs to loans and leases......... 0.64 0.17 0.28 1.14 0.61 0.89 0.37 0.37 0.72 0.33 0.90 

Credit loss provision to net charge-offs.... 102.91 201.56 148.50 97.43 98.76 88.03 115.16 124.48 106.58 114.91 113.33 

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

Condition Ratios (%) 

60.29 65.69 60.41 54.06 61.97 63.34 62.48 57.08 55.92 61.88 55.01 

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

Loss allowance to:

86.38 92.05 91.59 89.38 83.89 83.22 89.06 89.20 90.50 88.32 84.74 

 Loans and leases.................................... 1.83 1.48 1.50 2.16 1.83 2.13 1.49 1.56 1.79 1.42 2.19

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

Noncurrent assets plus

187.42 139.00 167.59 204.17 190.48 171.14 187.77 186.70 204.39 156.48 240.03 

 other real estate owned to assets........... 0.67 0.75 0.66 0.76 0.65 0.77 0.58 0.60 0.65 0.55 0.71 

Equity capital ratio..................................... 8.41 10.89 9.61 9.56 7.62 7.45 8.71 8.60 9.12 8.71 9.91 

Core capital (leverage) ratio...................... 7.56 10.72 9.23 8.58 6.63 6.92 7.45 7.97 8.67 7.92 8.29 

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

Structural Changes 

85.58 66.99 72.34 93.14 89.32 81.65 94.43 91.07 87.12 63.89 88.46 

 New charters.......................................... 27 26 1 0 0 3 3 4 2 3 12

 Banks absorbed by mergers.................. 146 61 72 11 2 7 59 27 19 22 12

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

PRIOR FIRST QUARTERS

 (The way it was . . . ) 

0 0 0 0 0 0 0 0 0 0 0 

Number of institutions.......................1997 9,451 6,147 2,900 331 73 739 1,565 2,083 2,393 1,671 1,000 

.........................................1995 10,242 7,123 2,725 331 63 830 1,697 2,237 2,566 1,828 1,084 

.........................................1993 11,330 8,215 2,741 322 52 911 1,877 2,497 2,762 2,008 1,275 

Total assets (in billions)....................1997 $4,641.5 $277.2 $710.9 $995.4 $2,658.0 $1,755.1 $828.1 $727.3 $304.0 $337.2 $689.7 

.........................................1995 4,116.1 310.3 667.8 1,077.0 2,060.9 1,597.9 682.0 665.0 261.3 306.6 603.3 

.........................................1993 3,513.6 344.8 669.3 1,004.5 1,495.0 1,329.6 556.5 574.3 234.7 283.0 535.5 

Return on assets (%).......................1997 1.25 1.21 1.32 1.29 1.23 1.19 1.31 1.27 1.33 1.23 1.32 

.........................................1995 1.10 1.17 1.23 1.29 0.94 0.93 1.12 1.15 1.41 1.10 1.32 

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

Net charge-offs to loans & leases (%) 

1.23 1.28 1.25 1.26 1.19 1.15 1.16 1.28 1.38 1.90 1.05 

........................................1997 0.58 0.18 0.35 0.96 0.52 0.66 0.43 0.42 0.71 0.31 0.80 

.........................................1995 0.38 0.15 0.31 0.50 0.37 0.58 0.23 0.21 0.41 0.16 0.37 

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

Noncurrent assets plus

0.85 0.29 0.43 0.94 1.09 1.33 0.42 0.52 0.58 0.21 0.91 

 OREO to assets (%).....................1997 0.73 0.80 0.74 0.83 0.69 0.82 0.63 0.58 0.67 0.61 0.87 

.........................................1995 0.99 0.88 0.91 0.90 1.07 1.24 0.73 0.65 0.67 0.66 1.28 

.........................................1993 2.42 1.38 1.70 2.08 3.22 3.32 1.63 1.34 1.20 1.35 3.28 

Equity capital ratio (%)......................1997 8.41 10.62 9.66 9.04 7.60 7.48 8.22 8.55 10.00 9.47 9.62 

.........................................1995 7.88 10.22 9.21 8.32 6.86 7.25 7.97 8.14 8.75 8.44 8.46 

.........................................1993 7.79 9.66 8.54 8.05 6.84 7.03 7.81 8.18 8.85 8.13 8.58 
 

 

 

 

 

TABLE IV-A. Full Year 1997, FDIC-Insured Commercial Banks 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

9,144 5,855 2,922 301 66 714 1,524 1,999 2,329 1,601 977 

Total assets (in billions)............................ $5,014.9 $267.9 $727.8 $902.6 $3,116.7 $1,893.9 $946.8 $804.8 $335.0 $356.0 $678.4 

Total deposits (in billions)......................... 3,421.7 230.5 602.0 624.6 1,964.6 1,149.4 654.6 579.1 255.0 291.1 492.4 

Net income (in millions)............................. 59,191 3,035 9,209 11,887 35,061 20,520 11,067 9,983 4,643 4,031 8,947 

% of unprofitable institutions..................... 4.7 6.7 1.2 1.7 NA 3.8 6.4 4.1 2.6 4.1 10.0 

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

Performance Ratios (%) 

68.6 64.3 76.4 74.4 81.8 75.2 70.5 70.8 65.4 64.1 71.8 

Yield on earning assets............................. 8.19 8.35 8.40 8.63 7.98 8.02 8.08 8.24 8.65 7.87 8.66 

Cost of funding earning assets................. 3.98 3.70 3.70 3.88 4.11 4.38 3.78 3.97 3.84 3.46 3.54 

Net interest margin.................................... 4.21 4.66 4.69 4.75 3.88 3.64 4.30 4.27 4.81 4.40 5.12 

Noninterest income to earning assets...... 2.52 1.40 1.66 2.60 2.82 3.13 2.01 1.82 2.51 2.08 2.70 

Noninterest expense to earning assets.... 4.10 3.98 3.89 4.12 4.16 4.27 3.80 3.55 4.25 4.20 4.61 

Credit loss provision to assets.................. 0.41 0.23 0.29 0.81 0.34 0.38 0.39 0.38 0.61 0.23 0.56 

Net operating income to assets................ 1.21 1.18 1.33 1.35 1.14 1.09 1.21 1.27 1.42 1.20 1.34 

Return on assets....................................... 1.23 1.19 1.34 1.36 1.18 1.14 1.23 1.29 1.44 1.22 1.35 

Return on equity........................................ 14.69 10.84 13.94 14.91 15.30 15.40 13.67 15.30 15.90 13.75 13.78 

Net charge-offs to loans and leases......... 0.64 0.27 0.36 1.08 0.58 0.73 0.46 0.50 0.82 0.37 0.83 

Credit loss provision to net charge-offs.... 108.30 146.49 131.85 113.07 100.33 100.59 129.48 115.37 111.69 111.67 100.15 

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

Condition Ratios (%) 

59.16 65.21 60.40 54.14 60.07 61.75 58.11 56.97 56.91 62.26 56.19 

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

Loss allowance to:

85.97 91.73 91.34 89.39 83.23 82.82 88.26 89.08 90.05 87.89 84.81 

 Loans and leases.................................... 1.84 1.45 1.49 2.11 1.88 2.14 1.53 1.57 1.80 1.41 2.14

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

Noncurrent assets plus

191.82 147.42 171.04 199.11 197.99 176.42 194.36 194.45 191.41 170.22 239.00 

 other real estate owned to assets........... 0.66 0.71 0.65 0.77 0.63 0.73 0.59 0.58 0.69 0.52 0.72 

Equity capital ratio..................................... 8.33 10.82 9.62 9.16 7.58 7.34 8.87 8.35 9.07 8.65 9.82 

Core capital (leverage) ratio...................... 7.56 10.67 9.24 8.39 6.65 6.91 7.64 7.82 8.66 7.92 8.25 

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

Structural Changes 

85.22 67.36 72.91 93.25 88.53 82.33 90.84 89.76 86.16 65.00 90.60 

 New charters.......................................... 188 178 7 3 0 16 44 32 27 27 42

 Banks absorbed by mergers.................. 598 226 284 71 17 44 163 152 88 79 72

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

PRIOR FULL YEARS

 (The way it was . . . ) 

1 1 0 0 0 0 0 0 0 1 0 

Number of institutions.......................1996 9,528 6,204 2,926 325 73 743 1,577 2,110 2,401 1,683 1,014 

.........................................1994 10,451 7,259 2,800 328 64 834 1,741 2,272 2,622 1,857 1,125 

.........................................1992 11,462 8,292 2,790 329 51 922 1,892 2,521 2,791 2,047 1,289 

Total assets (in billions)....................1996 $4,578.3 $280.0 $713.5 $1,002.4 $2,582.5 $1,730.7 $805.4 $716.8 $297.2 $334.4 $693.8 

.........................................1994 4,010.5 315.9 682.9 1,072.3 1,939.4 1,545.0 646.1 659.6 262.3 304.6 593.0 

.........................................1992 3,505.7 346.0 680.2 1,034.2 1,445.3 1,307.6 550.1 581.5 242.1 282.6 541.7 

Return on assets (%).......................1996 1.19 1.16 1.28 1.31 1.12 1.10 1.22 1.21 1.43 1.22 1.24 

.........................................1994 1.15 1.12 1.19 1.31 1.06 1.07 1.18 1.13 1.46 1.12 1.24 

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

Net charge-offs to loans & leases (%) 

0.93 1.04 1.01 1.02 0.81 0.81 0.99 1.02 1.30 1.12 0.82 

........................................1996 0.58 0.27 0.42 0.89 0.52 0.63 0.45 0.44 0.70 0.35 0.79 

.........................................1994 0.50 0.25 0.37 0.54 0.57 0.75 0.27 0.29 0.46 0.16 0.58 

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

Noncurrent assets plus

1.27 0.57 0.76 1.38 1.57 1.77 0.83 0.96 0.78 0.67 1.30 

 OREO to assets (%).....................1996 0.75 0.77 0.74 0.85 0.71 0.84 0.68 0.57 0.65 0.61 0.88 

.........................................1994 1.01 0.86 0.92 0.90 1.13 1.28 0.72 0.66 0.68 0.67 1.33 

.........................................1992 2.54 1.37 1.71 2.15 3.50 3.55 1.62 1.35 1.18 1.50 3.46 

Equity capital ratio (%)......................1996 8.20 10.55 9.44 8.77 7.38 7.36 8.48 8.44 8.74 8.74 9.22 

.........................................1994 7.78 9.84 8.79 7.94 7.01 7.33 7.84 7.88 8.43 8.15 8.33 

.........................................1992 7.51 9.38 8.20 7.68 6.62 6.93 7.60 7.86 8.43 7.31 8.17 
TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

March 31, 1998 All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 1.29 1.63 1.23 1.20 1.30 1.35 1.18 1.39 1.19 1.56 1.16

 Construction and development............................. 1.53 1.28 1.28 1.84 1.56 1.35 1.23 2.01 1.40 1.88 1.53

 Commercial real estate......................................... 1.10 1.22 0.97 1.09 1.17 1.43 0.85 1.33 0.83 1.20 0.90

 Multifamily residential real estate.......................... 0.91 0.97 0.85 0.84 0.97 0.66 0.76 1.41 1.30 0.92 0.72

 Home equity loans................................................ 0.88 1.06 0.87 0.93 0.86 1.06 0.84 0.88 0.63 0.86 0.79

 Other 1-4 Family residential.................................. 1.41 1.92 1.47 1.23 1.39 1.34 1.40 1.44 1.26 1.78 1.47 

Commercial and industrial loans*........................... 0.93 2.20 1.66 1.20 0.60 0.55 0.84 1.25 2.29 1.43 0.80 

Loans to individuals................................................. 2.27 2.42 1.92 2.41 2.27 2.54 2.18 2.20 2.27 1.82 2.07

 Credit card loans................................................. 2.58 2.90 2.42 2.62 2.57 2.53 3.10 2.81 2.50 2.40 2.35

 Other loans to individuals...................................... 2.08 2.40 1.83 2.18 2.07 2.55 1.83 2.05 2.05 1.77 1.75 

All other loans and leases (including farm)............. 0.66 NA NA 1.25 0.62 0.70 0.36 1.17 0.87 0.61 0.36 

Memo: Commercial RE loans not secured by RE.. 

Percent of Loans Noncurrent** 

0.59 0.79 0.63 1.08 0.53 0.40 0.39 1.46 0.96 0.38 0.54 

All real estate loans................................................. 1.00 0.89 0.79 0.90 1.14 1.43 0.85 0.79 0.66 0.98 1.02

 Construction and development............................. 1.07 0.81 0.97 0.94 1.24 2.12 0.84 0.99 0.91 0.92 1.02

 Commercial real estate......................................... 1.18 0.93 0.89 1.11 1.43 2.06 0.85 0.94 0.68 1.10 1.16

 Multifamily residential real estate.......................... 0.91 0.75 0.81 0.97 0.94 1.10 0.76 0.90 0.64 0.46 1.09

 Home equity loans................................................ 0.45 0.53 0.43 0.50 0.44 0.62 0.39 0.37 0.22 0.36 0.49

 Other 1-4 Family residential.................................. 0.90 0.79 0.69 0.81 1.03 1.08 0.90 0.73 0.57 0.90 1.01 

Commercial and industrial loans*........................... 0.96 1.46 1.25 0.90 0.84 1.00 0.71 0.99 1.28 1.16 0.90 

Loans to individuals................................................. 1.44 0.89 0.78 1.55 1.58 2.12 1.13 0.98 1.22 0.64 1.23

 Credit card loans................................................. 2.18 1.65 1.74 2.10 2.29 2.31 2.42 2.25 1.88 1.91 1.88

 Other loans to individuals...................................... 0.97 0.84 0.59 0.95 1.11 1.92 0.65 0.66 0.61 0.53 0.47 

All other loans and leases (including farm)............. 0.26 NA NA 0.50 0.24 0.24 0.16 0.43 0.37 0.27 0.25 

Memo: Commercial RE loans not secured by RE.. 

Percent of Loans Charged-off (net, annual) 

0.45 1.32 0.33 0.46 0.44 0.37 0.58 0.57 0.09 0.34 0.52 

All real estate loans................................................. 0.04 0.02 0.03 0.06 0.05 0.10 0.03 0.04 0.02 0.03 0.01

 Construction and development............................. 0.01 0.06 0.02 0.04 -0.02 0.00 0.01 0.01 0.09 -0.02 0.00

 Commercial real estate......................................... 0.00 0.02 0.04 0.03 -0.05 0.07 -0.02 0.01 -0.03 -0.01 -0.06

 Multifamily residential real estate.......................... -0.02 0.03 -0.03 0.00 -0.02 0.04 0.00 0.00 0.00 0.04 -0.19

 Home equity loans................................................ 0.17 0.10 0.07 0.20 0.18 0.25 0.11 0.14 0.07 0.69 0.21

 Other 1-4 Family residential.................................. 0.06 0.02 0.02 0.07 0.07 0.09 0.05 0.05 0.04 0.05 0.04 

Commercial and industrial loans*........................... 0.29 0.21 0.22 0.13 0.32 0.42 0.12 0.21 0.26 0.14 0.31 

Loans to individuals................................................. 2.80 0.65 1.42 3.75 2.75 3.37 1.95 1.65 2.96 1.39 4.38

 Credit card loans................................................. 5.40 3.02 5.12 6.15 4.90 5.22 4.82 4.51 5.16 4.63 6.77

 Other loans to individuals...................................... 1.06 0.49 0.66 1.01 1.27 1.26 0.81 0.90 0.80 1.10 1.48 

All other loans and leases (including farm)............. 0.23 NA NA 0.26 0.25 0.27 0.11 0.22 0.22 0.04 0.27 

Memo: Commercial RE loans not secured by RE.. 

Loans Outstanding (in billions) 

0.01 1.54 0.28 1.13 -0.14 -0.38 0.14 0.05 0.05 0.02 0.35 

All real estate loans................................................. $1,272.7 $86.8 $274.4 $263.2 $648.4 $315.6 $341.9 $246.5 $101.0 $82.2 $185.4

 Construction and development............................. 90.8 6.1 24.1 21.8 38.8 10.8 29.1 17.9 7.9 9.5 15.6

 Commercial real estate......................................... 346.4 23.3 94.4 79.1 149.6 70.5 87.6 70.6 27.3 27.1 63.3

 Multifamily residential real estate.......................... 42.2 1.9 9.1 11.4 19.9 11.8 9.1 8.4 3.2 2.3 7.3

 Home equity loans................................................ 96.8 2.0 13.0 19.7 62.1 22.4 26.5 23.7 4.5 0.8 19.0

 Other 1-4 Family residential.................................. 640.1 42.9 123.4 127.7 346.2 173.5 184.8 119.0 49.1 39.5 74.2 

Commercial and industrial loans............................. 820.1 25.7 79.5 125.3 589.6 306.5 137.5 148.7 48.6 54.9 124.0 

Loans to individuals................................................. 542.3 22.9 67.0 163.2 289.2 191.1 101.4 86.6 47.0 38.3 78.0

 Credit card loans................................................. 211.8 1.3 11.1 85.4 114.0 99.7 27.4 17.3 22.7 3.0 41.7

 Other loans to individuals...................................... 330.5 21.6 55.9 77.8 175.2 91.4 74.0 69.3 24.3 35.3 36.3 

All other loans and leases (including farm)............. 392.5 19.4 23.6 38.1 311.4 156.4 67.1 56.1 29.4 17.0 66.5 

Memo: Commercial RE loans not secured by RE.. 

Memo: Other Real Estate Owned (in millions) 

28.7 0.2 1.0 2.9 24.7 8.9 5.0 3.4 1.8 2.8 6.9 

All other real estate owned..................................... $3,732.8 $336.5 $833.8 $601.5 $1,960.9 $1,314.7 $818.4 $397.0 $197.8 $269.7 $735.2

 Construction and development............................. 402.1 39.1 151.9 82.2 128.9 93.4 147.5 32.6 34.9 20.1 73.7

 Commercial real estate......................................... 1,718.3 143.9 378.1 280.7 915.5 605.2 308.2 182.4 74.9 136.7 410.9

 Multifamily residential real estate.......................... 143.2 10.4 29.3 28.1 75.5 85.0 17.7 8.9 6.8 4.6 20.2

 1-4 Family residential............................................ 1,145.4 114.6 247.3 202.8 580.7 288.1 337.2 166.7 63.3 84.7 205.3

 Farmland............................................................... 85.7 28.5 27.2 7.4 22.6 6.1 7.7 6.4 17.9 23.7 23.9

 Other real estate owned in foreign offices............ 238.0 0.0 0.0 0.3 237.8 236.8 0.1 0.0 0.0 0.0 1.1 

*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. 
SAVINGS INSTITUTION PERFORMANCE – FIRST QUARTER, 1998 

• Savings Institutions Earn $2.6 Billion In The First Quarter 

• Return On Assets At 1.01 Percent Matches The Second-Best Ever 

• Nonrecurring Gains On Sales Of Securities And Lower Provisions For 

Credit Losses Lift Earnings 

• Equity Capital Sets Fourth Consecutive High Since 1943 

Savings institutions reported $2.6 billion in earnings 

for the first quarter of 1998, for an average 

annualized return on assets (ROA) of 1.01 percent. 

Only the second quarter of 1996 was more profitable 

with an annualized ROA of 1.03 percent. This 

quarter’s profitability matches the first quarter of 

1997. More than 95 percent of savings institutions 

were profitable in the first quarter, and 38 percent 

reported an ROA of 1 percent or better. Earnings in 

the first quarter were $178 million higher than a year 

ago. However, net operating income – net income 

less gains on the sales of securities and 

extraordinary gains – was $110 million lower than a 

year ago. Gains on the sales of securities, at $646 

million, were the highest since the fourth quarter of 

1992, when they amounted to $696 million; a year 

ago, they amounted to just $247 million. Earnings 

benefited from a decline in provisions for credit 

losses. These provisions were $424 million in the 

first quarter, $165 million lower than a year ago. 

Quarterly Net Income, 1994Œ1998

$ Billions 

4 

3 

2 

1 

0 

-1 

1.3 

1.8 

1.9 

1.6 1.7 

1.8 

2.2 

1.8 

2.5 2.6 

-0.0 

2.1 

2.4 2.4 

2.0 

2.3 

2.6 

Net Operating Income 

Securities and Other Gains, Net 

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

1994 1995 1996 1997 1998 

Net interest income was $278 million lower than a 

year ago, and as a result net interest margins were 

lower. Net interest margins were 3.18 percent in the 

first quarter, down from 3.33 percent a year ago. 

The yield on earning assets was 12 basis points 

lower than in the first quarter a year ago, while the 

cost of funding earning assets was 3 basis points 

higher. For institutions with assets of $1 billion or 

more, the yield on earning assets was sharply lower, 

down 15 basis points from the first quarter of 1997. 

Quarterly Net Interest Margins, Annualized

1994Œ1998

Net Interest Margin (%) 

4.0 

3.5 

3.0 

Assets > $100 Million 

3.55% 

3.16% 

Assets < $100 Million 

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

1994 1995 1996 1997 1998 

As asset-quality problems have receded, control of 

overhead expense has emerged as a primary 

determinant of profitability. Large savings 

institutions have the lowest net interest margins 

(2.96 percent), yet they have the best core 

profitability (0.88 percent) because their relative low 

level of overhead costs gives them the lowest level 

of noninterest expense relative to their assets. Core 

profitability is net operating income as a percent of 

assets. The large institutions’ ratio of noninterest 

expense to average earning assets was an 

annualized 2.13 percent during the first quarter, 

outperforming all other size groups. These 

institutions’ relatively low level of overhead costs 

has also helped them register the best efficiency 

ratio (noninterest expense divided by net interest 

income plus noninterest income), at 53.7 percent. 

In contrast, savings institutions with assets of $100 

million or less were less profitable. Their core 

profitability was the lowest, at 0.69 percent, and 

their ratio of noninterest expense to average 

earning assets was the worst, at 3.34 percent. 

FDIC Quarterly Banking Profile

FDIC-Insured Savings Institutions 8 First Quarter 1998
Asset-quality improvements boosted reserve 

coverage ratios and reduced loan losses. The 

coverage ratio – loan-loss reserves to noncurrent 

loans – improved in all size groups during the quarter 

and rose to a record 97 cents for each dollar of 

noncurrent loans. Loan-loss reserves increased 

slightly during the quarter, by $3.5 million, to just 

under $7 billion, while noncurrent loans declined by 

$425 million during the quarter, to $7.2 billion. Over 

two-thirds of the decline in noncurrent loans occurred 

at one institution that specializes in loan workouts. 

The industry’s noncurrent assets plus other real 

estate owned (OREO) fell to 0.89 percent of total 

assets, the lowest level for this ratio since 1990 when 

all institutions began reporting consistent data on 

noncurrent loans. 

Coverage Ratio and Reserve Levels,* 1994Œ1998

$ Billions Coverage Ratio (%) 

$5.1 billion increase in other borrowings. Despite 

the rise in other borrowings, Federal Home Loan 

Bank advances declined by $1.9 billion during the 

quarter at thrifts that file a Thrift Financial Report. 

Equity capital reached 8.79 percent of assets at the 

end of the first quarter, the fourth consecutive 

quarter that this ratio has reached a high since 1943. 

Core capital, as measured by the leverage ratio, 

also rose to 8.02 percent of assets. Regulatory 

capital ratios that rely on risk-weighted assets have 

risen very little over the past year because of growth 

in assets with higher risk weights. Real estate 

construction loans grew by 10 percent from a year 

ago. And as mentioned above, C&I loans grew by 

17 percent from a year ago. Despite the increase in 

riskier assets, 98 percent of the industry remains 

well capitalized according to regulatory standards. 

30 100 Capital Ratios, 1992Œ1998

Ratios (%) 

18 

25 

80 16 

20 14 

60 

12 15 

10 

10 

40 

8 

5 20 

6 1994 1995 1996 1997 1998 

*Loan-Loss reserves to Noncurrent Loans and Leases. 

4 

In another indication of improving asset quality, 

Loan Reserves ($) Noncurrent Loans ($) 

Coverage Ratio (%) 

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

Tier 1 Risk-Based Capital 

Equity to Assets 

Total Risk-Based Capital 

Core Capital (Leverage) 

1992 1993 1994 1995 1996 1997 1998 

savings institutions reported lower loan losses. Net 

charge-offs on loans declined to $363 million from 

$452 million a year ago. These charges amount to 

an annualized 0.21 percent of total loans, the lowest 

quarterly rate ever reported by the industry. 

Industry assets grew by $14.1 billion during the first 

quarter, the largest quarterly increase since 1988. 

Home mortgages increased by $6.2 billion and are 

$12.9 billion higher than they were a year ago. 

Restrictions on the amount of commercial and 

industrial (C&I) loans that thrifts are allowed to hold 

were eased in late 1996, and this loan category 

showed a 17 percent growth rate over the past 12 

months. C&I loans increased by $1.2 billion during 

the first quarter and are $2.6 billion higher than they 

were a year ago. Savings institutions funded asset 

growth with a $4.0 billion increase in deposits and a 

Industry consolidation has caused assets to be increasingly concentrated in the largest institutions. 

The 36 largest thrifts now hold half of the industry’s 

assets (and several of these institutions are affiliated with one another through holding companies). 

In 1985 it took 161 thrifts to accumulate the same 

percentage of the industry’s assets. Commercial 

bank holding companies have also been increasing 

their share of thrift industry assets, and now own 220 

thrifts with over 20 percent of industry assets. 

The number of insured savings institutions continues to decline, falling by 24 during the first quarter, to 1,755 charters. Thrifts purchased more commercial banks than vice versa; however, banks 

acquired more thrift assets. Thrifts purchased 10 

commercial bank charters with $815 million in assets; commercial banks purchased 9 thrift charters 

FDIC Quarterly Banking Profile

First Quarter 1998 9 FDIC-Insured Savings Institutions
Number of Savings Institutions with 50 Percent of with $9.1 billion in assets; 3 commercial banks with Industry Assets, 1985Œ1998 $522 million in assets converted to thrift charters; Number of Institutions 

and 3 thrifts with $881 million in assets converted to 

commercial bank charters. The net transfer of as- 150 sets from the thrift industry to the commercial banking industry was $8.6 billion. 

Within the thrift industry during the first quarter, 

100 mergers reduced the number of thrifts by 17 

charters. Three new savings institutions opened. 

There were 18 mutual-to-stock conversions 

involving $4.6 billion in assets. And for the sixth 50 

consecutive quarter, no thrifts failed. The number of 

“problem” thrifts declined to 16 from 21 at the end of 

1997. However, assets of problem thrifts rose to 

0 $2.3 billion from $1.7 billion at year-end 1997. 

Noncurrent Loan Rates by State,*

March 31, 1998

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 3/98 

161 

151 

135 

123 

112 

105 

97 

88 

75 

63 

53 50 

39 36 

Central Northeast 

Southwest Southeast 

Midwest West 

* Noncurrent loan rates represent the percentage of loans that 

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

Between .75% and 1.5% 

Less than .75% 

Greater than 1.5% 

Alabama 

0.9 

Alaska 

0.6 

Arizona 

0.4 

Arkansas 

0.5 

California 

1.0 

Colorado 

0.3 

CT : 1.0 

DE : 0.9 

DC : 1.1 

FL 

0.9 

Georgia 

0.9 

Hawaii 

2.1 

Idaho 

0.3 

Illinois 

0.9 

IN 

0.9 

Iowa 

1.2 

Kansas 

0.3 Kentucky 

0.8 

LA 

0.4 

Maine 

1.1 

MD : 1.9 

MA : 0.6 Michigan 

0.7 

Minnesota 

0.6 

MS 

0.9 

Missouri 

0.6 

Montana 

0.7 

Nebraska 

0.7 Nevada 

NA 

NH : 0.7 

NJ : 3.8 

New Mexico 

0.7 

NY 

1.4 

N. Carolina 

0.5 

North 

Dakota 

0.3 

Ohio 

0.7 

Oklahoma 

0.5 

Oregon 

0.5 

Pennsylvania 

0.9 

RI : 1.1 

S. Carolina 

0.6 

South 

Dakota 

0.7 

Tennessee 

0.6 

Texas 

1.2 

Utah 

1.2 

VT : 1.8 

Virginia 

1.2 

Washington 

0.5 

WV 

1.1 

Wisconsin 

0.4 

Wyoming 

0.5 

Puerto 

Rico 

6.8 

FDIC Quarterly Banking Profile

FDIC-Insured Savings Institutions 10 First Quarter 1998
TABLE I-B. Selected Indicators, FDIC-Insured Savings Institutions*

 1998** 1997** 1997 1996 1995 1994 1993 

Return on assets (%).............................................. 1.01 0.96 0.93 0.70 0.77 0.66 0.70 

Return on equity (%)............................................... 11.55 11.47 10.89 8.35 9.40 8.28 9.24 

Core capital (leverage) ratio (%)............................. 8.02 7.84 7.96 7.76 7.80 7.65 7.45 

Noncurrent assets plus

 other real estate owned to assets (%).................. 0.89 1.10 0.95 1.09 1.20 1.38 2.10 

Net charge-offs to loans (%)................................... 0.21 0.27 0.25 0.32 0.34 0.51 0.65 

Asset growth rate (%).............................................. 1.77 0.57 -0.20 0.25 1.70 0.77 -2.85 

Net interest margin (%)........................................... 3.18 3.33 3.23 3.20 3.09 3.34 3.48 

Net operating income growth (%)........................... -4.95 -2.71 21.31 -14.47 13.81 22.24 21.21 

Number of institutions............................................. 1,755 1,886 1,779 1,924 2,030 2,152 2,262 

Percentage of unprofitable institutions.................... 4.62 4.19 3.93 11.95 5.86 6.97 5.88 

Number of problem institutions............................... 16 35 21 35 49 71 146 

Assets of problem institutions (in billions)............... $2 $5 $2 $7 $14 $39 $92 

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

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

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

(dollar figures in millions) 

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

Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

1998 1997 1997 97:1-98:1 

1,755 1,779 1,886 -6.9 

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

CONDITION DATA 

243,502 244,830 250,917 -3.0 

Total assets............................................................................. $1,040,283 $1,026,214 $1,022,212 1.8

 Loans secured by real estate............................................ 637,132 631,861 626,608 1.7

 1-4 Family residential...................................................... 513,148 506,983 500,248 2.6

 Multifamily residential property........................................ 57,057 57,612 58,787 -2.9

 Commercial real estate................................................... 46,659 47,509 49,225 -5.2

 Construction, development and land............................... 20,268 19,757 18,348 10.5

 Commercial & industrial loans........................................... 17,407 16,209 14,855 17.2

 Loans to individuals........................................................... 47,590 47,675 46,127 3.2

 Other loans & leases......................................................... 2,997 3,214 2,454 22.2

 Less: Unearned income (Call Report filers only).............. 206 215 262 -21.4

 Total loans & leases............................................................ 704,920 698,744 689,782 2.2

 Less: Reserve for losses..................................................... 6,974 6,971 6,955 0.3

 Net loans & leases................................................................ 697,946 691,774 682,826 2.2

 Securities............................................................................... 249,122 248,673 258,101 -3.5

 Other real estate owned........................................................ 1,993 2,084 2,334 -14.6

 Goodwill and other intangibles.............................................. 11,845 10,998 9,115 30.0

 All other assets...................................................................... 79,377 72,687 69,835 13.7 

Total liabilities and capital....................................................... 1,040,283 1,026,214 1,022,212 1.8

 Deposits................................................................................ 708,128 704,115 726,118 -2.5

 Other borrowed funds............................................................ 221,361 216,260 196,202 12.8

 Subordinated debt................................................................. 2,735 2,935 2,364 15.7

 All other liabilities................................................................... 16,583 13,532 12,129 36.7

 Equity capital......................................................................... 91,475 89,371 85,398 7.1 

Loans and leases 30-89 days past due.................................. 7,658 8,135 8,817 -13.1 

Noncurrent loans and leases.................................................. 7,223 7,648 8,872 -18.6 

Restructured loans and leases................................................ 3,215 3,381 4,343 -26.0 

Direct and indirect investments in real estate......................... 638 595 595 7.3 

Mortgage-backed securities.................................................... 182,546 180,639 191,441 -4.6 

Earning assets......................................................................... 971,708 959,669 960,133 1.2 

FHLB Advances (TFR filers only)............................................ 116,703 118,620 97,561 19.6 

Unused loan commitments...................................................... 172,897 111,478 105,131 64.5 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

Preliminary 

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

1997 1996 %Change 1998 1997 97:1-98:1 

$69,175 $71,704 -3.5 $18,326 $18,432 -0.6 

40,559 41,782 -2.9 10,741 10,568 1.6

28,615 29,922 -4.4 7,585 7,863 -3.5 

2,162 2,534 -14.7 424 589 -28.0 

7,030 7,454 -5.7 1,931 1,820 6.1 

21,050 25,538 -17.6 5,768 5,585 3.3 

1,262 925 36.4 646 247 161.3 

4,863 3,013 61.4 1,378 1,349 2.1 

(5) (245) N/M (8) (0) N/M

8,828 6,972 26.6 2,585 2,407 7.4 

1,569 2,113 -25.8 363 452 -19.7 

4,883 5,749 -15.1 1,385 1,269 9.2

7,913 6,523 21.3 2,121 2,231 -5.0 

*Data between 1993 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. 
 

 

 

 

 

TABLE III-B. First Quarter 1998, FDIC-Insured Savings Institutions 

FIRST QUARTER Preliminary 

 (The way it is . . . ) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,755 742 862 115 36 680 250 457 129 117 122 

Total assets (in billions).............................. $1,040.3 $39.0 $256.4 $220.4 $524.5 $347.0 $66.8 $174.0 $34.4 $62.1 $356.0 

Total deposits (in billions)........................... 708.1 32.0 199.4 150.9 325.8 255.7 49.1 125.2 24.9 40.5 212.7 

Net income (in millions)............................... 2,584.8 76.7 625.2 581.1 1,301.8 853.6 144.0 422.1 84.9 214.1 866.1 

% of unprofitable institutions....................... 4.6 7.4 2.4 4.3 NA 3.2 8.0 3.5 4.7 9.4 4.9 

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

Performance Ratios (annualized, %) 

58.3 49.3 63.1 72.2 86.1 57.5 59.6 56.7 60.5 53.0 69.7 

Yield on earning assets............................... 7.68 7.78 7.75 7.76 7.60 7.58 7.98 7.74 7.70 7.97 7.64 

Cost of funding earning assets................... 4.50 4.23 4.29 4.48 4.64 4.17 4.50 4.67 4.68 4.75 4.69 

Net interest margin...................................... 3.18 3.55 3.46 3.28 2.96 3.41 3.48 3.08 3.01 3.23 2.95 

Noninterest income to earning assets........ 0.81 1.09 0.66 0.96 0.79 0.63 1.36 0.92 0.88 1.35 0.73 

Noninterest expense to earning assets...... 2.42 3.34 2.57 2.75 2.13 2.46 3.41 2.48 2.29 3.16 2.03 

Credit loss provision to assets*................... 0.17 0.10 0.13 0.30 0.13 0.14 0.26 0.22 0.16 0.41 0.11 

Net operating income to assets.................. 0.83 0.69 0.87 0.69 0.88 0.84 0.66 0.73 0.89 0.80 0.90 

Return on assets......................................... 1.01 0.80 0.99 1.06 1.02 1.00 0.88 0.98 1.00 1.37 1.00 

Return on equity.......................................... 11.55 6.63 9.43 11.95 13.38 10.35 8.74 10.61 10.58 15.96 13.62 

Net charge-offs to loans and leases........... 0.21 0.10 0.10 0.33 0.22 0.16 0.36 0.19 0.17 0.44 0.20 

Credit loss provision to net charge-offs...... 116.83 145.06 191.03 145.31 84.09 142.43 104.94 163.45 129.72 140.03 73.25 

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

Condition Ratios (%) 

58.59 71.08 61.41 63.04 53.71 58.99 68.76 58.99 57.89 67.89 53.47 

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

Loss allowance to:

93.41 94.37 94.69 93.11 92.84 93.66 92.35 93.42 94.56 92.04 93.49 

 Loans and leases...................................... 0.99 0.77 0.89 1.18 0.98 1.10 1.04 0.78 0.69 0.94 1.03

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

Noncurrent assets plus

96.56 74.81 97.88 81.04 107.33 80.63 125.23 106.07 106.82 89.82 107.91 

 other real estate owned to assets............. 0.89 0.84 0.78 1.23 0.80 1.00 0.81 0.65 0.60 1.09 0.90 

Noncurrent RE loans to RE loans............... 1.03 1.00 0.90 1.47 0.93 1.40 0.75 0.71 0.57 1.09 0.97 

Equity capital ratio....................................... 8.79 12.01 10.49 8.95 7.66 9.70 10.15 9.20 9.41 8.74 7.40 

Core capital (leverage) ratio........................ 8.02 11.65 9.93 8.35 6.66 8.81 9.48 8.28 8.97 8.36 6.69 

Gross real estate assets to gross assets.... 78.50 69.81 73.00 75.50 83.10 73.00 71.60 77.85 75.24 70.96 87.11 

Gross 1-4 family mortgages to gr. assets... 48.99 50.74 47.53 41.43 52.76 43.25 45.85 54.23 53.18 38.42 54.06 

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

Structural Changes 

98.56 81.28 85.59 93.05 110.75 81.89 91.02 99.01 98.43 103.49 119.16 

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

 Thrifts absorbed by mergers.................... 26 8 12 5 1 8 4 4 5 2 3

 Failed thrifts.............................................. 

PRIOR FIRST QUARTERS**

 (The way it was . . . ) 

0 0 0 0 0 0 0 0 0 0 0 

Number of institutions.......................1997 1,886 824 904 124 34 713 277 492 143 124 137 

.......................................1995 2,118 973 981 132 32 778 333 538 160 139 170 

.......................................1993 2,352 1,095 1,081 149 27 845 401 582 174 152 198 

Total assets (in billions).....................1997 $1,022.2 $42.7 $267.7 $260.4 $451.3 $336.3 $64.6 $176.7 $50.7 $61.6 $332.3 

.......................................1995 1,013.8 49.2 280.6 285.2 398.7 330.3 82.6 165.2 54.0 71.7 310.0 

.......................................1993 1,009.6 55.3 311.9 314.8 327.6 328.5 99.0 150.8 49.9 56.4 325.1 

Return on assets (%)........................1997 0.96 0.76 0.95 1.11 0.89 0.98 0.89 1.01 1.10 1.07 0.87 

.......................................1995 0.69 0.76 0.76 0.57 0.71 0.88 0.82 0.82 0.99 0.77 0.31 

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

Net charge-offs to loans & leases (%) 

0.94 1.03 1.01 1.08 0.73 1.02 0.65 1.02 1.10 2.37 0.64 

.......................................1997 0.27 0.07 0.11 0.48 0.27 0.27 0.46 0.24 0.04 0.43 0.25 

.......................................1995 0.30 0.07 0.14 0.32 0.44 0.36 0.10 0.09 0.25 0.16 0.45 

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

Noncurrent assets plus 

0.55 0.15 0.24 0.58 0.85 0.68 0.40 0.14 0.13 0.46 0.69 

OREO to assets (%)***..........1997 1.10 0.90 0.96 1.35 1.05 1.29 0.99 0.66 0.70 1.06 1.23 

.......................................1995 1.33 1.07 1.18 1.48 1.36 1.78 1.00 0.51 0.65 1.25 1.52 

.......................................1993 3.02 1.80 2.38 2.92 3.94 3.67 2.25 0.94 1.17 3.86 3.71 

Equity capital ratio (%)......................1997 8.35 11.44 9.88 8.46 7.09 9.17 9.46 8.70 8.64 8.12 7.13 

.......................................1995 8.06 10.24 9.19 8.14 6.95 8.73 8.69 8.76 8.16 7.00 7.05 

.......................................1993 7.44 8.67 7.95 7.39 6.81 7.50 7.72 8.09 7.29 6.64 7.17 

*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. 
 

 

 

 

 

 

 

TABLE IV-B. Full Year 1997, FDIC-Insured Savings Institutions 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,779 764 858 122 35 687 254 461 133 118 126 

Total assets (in billions).............................. $1,026.2 $39.9 $250.4 $239.8 $496.1 $342.8 $64.9 $174.1 $33.5 $64.0 $346.8 

Total deposits (in billions)........................... 704.1 32.8 196.4 164.1 310.8 257.0 48.1 124.9 24.1 39.9 210.2 

Net income (in millions)............................... 8,827.7 292.7 2,295.2 2,446.0 3,793.8 3,247.8 528.2 1,500.0 326.9 639.4 2,585.3 

% of unprofitable institutions....................... 3.9 6.4 2.1 1.6 2.9 2.5 8.3 2.2 2.3 9.3 6.3 

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

Performance Ratios (%) 

89.0 87.0 90.7 90.2 85.7 85.3 88.6 94.4 91.7 88.1 88.1 

Yield on earning assets............................... 7.80 7.83 7.89 7.95 7.68 7.71 8.12 7.73 7.81 8.14 7.82 

Cost of funding earning assets................... 4.57 4.29 4.36 4.57 4.72 4.21 4.54 4.66 4.80 4.91 4.84 

Net interest margin...................................... 3.23 3.55 3.53 3.37 2.96 3.49 3.57 3.07 3.00 3.22 2.98 

Noninterest income to earning assets........ 0.79 0.89 0.63 0.96 0.79 0.61 1.49 0.92 0.73 1.13 0.72 

Noninterest expense to earning assets...... 2.37 3.17 2.57 2.57 2.10 2.38 3.47 2.40 2.08 2.56 2.12 

Credit loss provision to assets*................... 0.23 0.11 0.16 0.28 0.25 0.17 0.41 0.24 0.12 0.33 0.24 

Net operating income to assets.................. 0.84 0.67 0.87 0.90 0.80 0.91 0.64 0.76 0.92 1.01 0.79 

Return on assets......................................... 0.93 0.75 0.95 1.07 0.87 1.00 0.87 0.90 1.01 1.03 0.86 

Return on equity.......................................... 10.89 6.47 9.27 12.69 11.67 10.64 8.86 10.10 10.95 12.55 11.94 

Net charge-offs to loans and leases........... 0.25 0.10 0.17 0.34 0.26 0.22 0.47 0.24 0.07 0.43 0.22 

Credit loss provision to net charge-offs...... 137.86 163.74 141.66 128.49 141.64 130.32 126.36 141.80 255.07 122.12 148.92 

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

Condition Ratios (%) 

57.19 70.80 60.95 57.52 53.23 56.27 67.05 57.37 54.74 57.72 55.63 

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

Loss allowance to:

93.52 94.42 94.63 92.87 93.19 94.01 92.35 93.29 94.87 91.62 93.57 

 Loans and leases...................................... 1.00 0.76 0.90 1.16 1.00 1.08 1.06 0.78 0.69 0.91 1.06

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

Noncurrent assets plus

91.15 72.71 92.44 71.89 106.60 71.11 124.22 100.93 109.82 80.57 109.48 

 other real estate owned to assets............. 0.95 0.87 0.83 1.31 0.84 1.12 0.86 0.67 0.57 1.10 0.95 

Noncurrent RE loans to RE loans............... 1.10 1.03 0.95 1.63 0.96 1.58 0.73 0.72 0.55 1.22 0.99 

Equity capital ratio....................................... 8.71 11.93 10.49 8.74 7.54 9.62 10.15 9.20 9.45 8.35 7.29 

Core capital (leverage) ratio........................ 7.96 11.57 9.94 8.05 6.61 8.72 9.42 8.20 9.12 7.93 6.70 

Gross real estate assets to gross assets.... 78.88 71.30 73.82 75.72 83.58 74.00 72.10 78.01 76.59 71.52 86.99 

Gross 1-4 family mortgages to gr. assets... 49.06 52.02 47.94 40.29 53.63 43.76 46.36 53.76 54.27 36.56 54.25 

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

Structural Changes 

98.25 82.90 85.75 91.91 111.11 81.79 91.74 98.74 100.12 102.14 118.60 

 New charters............................................ 12 12 0 0 0 2 6 0 1 2 1

 Thrifts absorbed by mergers.................... 128 44 66 14 4 39 21 31 11 10 16

 Failed thrifts.............................................. 

PRIOR FULL YEARS**

 (The way it was . . . ) 

0 0 0 0 0 0 0 0 0 0 0 

Number of institutions.......................1996 1,924 844 919 125 36 730 278 499 145 129 143 

.......................................1994 2,152 996 992 133 31 786 343 547 160 141 175 

.......................................1992 2,390 1,109 1,094 158 29 852 416 590 176 154 202 

Total assets (in billions).....................1996 $1,028.3 $43.7 $270.1 $258.3 $456.2 $345.4 $63.2 $175.7 $50.3 $78.3 $315.3 

.......................................1994 1,008.6 50.4 286.0 292.2 379.9 330.9 82.1 155.5 53.1 70.8 316.1 

.......................................1992 1,030.2 55.9 316.2 325.3 332.7 341.2 109.0 150.5 49.5 61.4 318.7 

Return on assets (%)........................1996 0.70 0.45 0.66 0.82 0.68 0.84 0.52 0.70 0.48 1.57 0.40 

.......................................1994 0.66 0.79 0.77 0.82 0.43 0.89 0.84 0.76 0.40 0.97 0.30 

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

Net charge-offs to loans & leases (%) 

0.65 0.86 0.81 0.67 0.47 0.59 0.77 0.89 1.10 1.55 0.34 

.......................................1996 0.32 0.10 0.17 0.33 0.43 0.32 0.38 0.14 0.15 0.32 0.44 

.......................................1994 0.51 0.10 0.23 0.49 0.79 0.49 0.16 0.11 0.15 0.29 0.86 

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

Noncurrent assets plus 

0.59 0.23 0.37 0.67 0.76 0.89 0.38 0.20 0.21 0.34 0.60 

OREO to assets (%)***..........1996 1.09 0.96 0.99 1.25 1.08 1.26 0.99 0.65 0.67 1.11 1.25 

.......................................1994 1.38 1.08 1.24 1.47 1.46 1.83 1.07 0.50 0.61 1.37 1.56 

.......................................1992 3.07 1.83 2.35 3.12 3.92 3.81 2.43 0.99 1.24 3.92 3.60 

Equity capital ratio (%)......................1996 8.34 11.40 9.95 8.29 7.13 9.12 9.44 8.69 8.71 8.10 7.09 

.......................................1994 7.93 9.94 9.02 8.10 6.70 8.51 8.59 8.75 7.71 7.01 6.97 

.......................................1992 7.22 8.47 7.71 7.12 6.62 7.26 7.48 7.89 7.05 6.32 6.96 

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

**Data between 1992 and 1995 does 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. 
TABLE V-B. Loan Performance, FDIC-Insured Savings Institutions 

March 31, 1998 All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 1.02 1.82 1.19 1.03 0.89 1.06 1.17 1.04 1.25 1.33 0.90

 Construction, development and land.................... 1.78 2.80 1.79 1.73 1.63 1.28 1.77 2.76 2.11 1.76 1.23

 Commercial real estate......................................... 1.03 1.55 1.25 1.20 0.56 1.12 1.50 1.21 1.77 1.10 0.51

 Multifamily residential real estate.......................... 0.50 0.96 0.77 0.48 0.41 0.63 0.88 0.71 0.70 0.22 0.40

 Home equity loans................................................ 0.67 0.59 0.87 0.59 0.58 0.84 0.28 0.67 0.60 0.39 0.54

 Other 1-4 Family residential.................................. 1.07 1.86 1.19 1.07 0.95 1.10 1.10 1.00 1.20 1.39 1.02 

Commercial and industrial loans............................. 1.41 2.19 1.84 1.74 0.60 1.44 1.69 1.96 2.39 1.01 0.82 

Loans to individuals................................................. 1.86 2.26 1.67 2.23 1.73 1.99 2.68 1.84 1.90 1.31 1.67

 Credit card loans................................................... 1.95 1.10 2.40 2.99 1.59 1.21 3.86 2.60 2.52 0.79 3.19

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

Percent of Loans Noncurrent* 

1.83 2.30 1.56 2.07 1.79 2.14 2.11 1.66 1.87 1.76 1.45 

All real estate loans................................................. 1.03 1.00 0.90 1.47 0.93 1.40 0.75 0.71 0.57 1.09 0.97

 Construction, development and land.................... 1.14 1.43 1.31 1.22 0.83 1.65 1.13 1.28 1.19 0.48 1.11

 Commercial real estate......................................... 1.65 1.59 1.25 2.27 1.56 2.02 1.15 1.19 0.67 1.84 1.44

 Multifamily residential real estate.......................... 0.91 0.89 0.85 1.82 0.56 1.70 1.00 0.95 0.90 3.70 0.43

 Home equity loans................................................ 0.36 0.29 0.46 0.34 0.31 0.47 0.15 0.36 0.27 0.13 0.28

 Other 1-4 Family residential.................................. 1.00 0.94 0.85 1.36 0.96 1.31 0.68 0.66 0.52 0.87 1.05 

Commercial and industrial loans............................. 1.18 1.82 1.44 1.37 0.70 1.43 0.86 1.03 2.07 1.03 0.81 

Loans to individuals................................................. 0.91 1.02 0.84 1.44 0.67 0.88 1.49 0.96 1.07 0.87 0.60

 Credit card loans................................................... 1.37 0.79 1.70 2.20 1.09 1.16 2.41 2.10 1.22 0.60 1.51

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

Percent of Loans Charged-off 

 (net, annualized) 

0.78 1.03 0.72 1.29 0.48 0.82 1.04 0.69 1.07 1.11 0.47 

All real estate loans................................................. 0.08 0.05 0.04 0.11 0.09 0.08 0.03 0.05 0.00 0.04 0.11

 Construction, development and land.................... 0.04 0.23 -0.06 0.13 0.05 -0.02 0.04 0.13 -0.69 0.01 0.19

 Commercial real estate......................................... 0.05 0.12 0.07 0.24 -0.15 0.01 0.07 0.30 0.02 0.08 -0.03

 Multifamily residential real estate.......................... 0.09 0.21 -0.05 0.10 0.12 0.02 0.12 0.06 -0.09 0.05 0.13

 Home equity loans................................................ 0.20 -0.02 0.15 0.22 0.24 0.15 0.06 0.15 0.58 0.28 0.34

 Other 1-4 Family residential.................................. 0.08 0.03 0.04 0.09 0.09 0.09 0.01 0.03 0.02 0.03 0.11 

Commercial and industrial loans............................. 0.32 0.29 0.40 0.37 0.24 0.11 0.24 0.07 3.59 0.64 0.27 

Loans to individuals................................................. 1.91 0.67 0.88 2.51 2.18 1.23 3.13 1.62 0.92 2.18 2.74

 Credit card loans................................................... 3.89 3.37 2.75 4.94 3.79 3.26 7.14 5.18 4.33 1.81 4.83

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

Loans Outstanding (in billions) 

1.32 0.55 0.61 1.98 1.42 0.83 1.08 0.67 0.79 2.54 2.44 

All real estate loans................................................. $637.1 $23.7 $156.5 $123.3 $333.6 $189.2 $38.9 $111.1 $21.8 $32.8 $243.4

 Construction, development and land.................... 20.3 1.1 8.0 4.8 6.4 4.2 3.5 4.0 1.0 3.8 3.8

 Commercial real estate......................................... 46.5 2.0 16.5 12.9 15.1 20.7 3.6 5.6 1.7 3.0 11.9

 Multifamily residential real estate.......................... 57.1 0.7 9.4 13.5 33.4 13.1 0.9 6.5 0.8 2.0 33.7

 Home equity loans................................................ 17.2 0.5 5.3 4.0 7.4 6.8 1.5 4.6 0.5 0.3 3.5

 Other 1-4 Family residential.................................. 495.9 19.4 117.3 88.0 271.2 144.3 29.4 90.3 17.9 23.7 190.4 

Commercial and industrial loans............................. 17.4 0.7 4.4 5.8 6.6 7.5 1.3 2.7 0.6 1.6 3.5 

Loans to individuals................................................. 47.6 1.8 10.9 11.8 23.2 13.9 4.8 10.4 2.3 7.6 8.7

 Credit card loans................................................... 10.5 0.1 1.3 2.0 7.1 2.2 1.6 2.0 0.1 3.6 1.1

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

Memoranda: 

Other Real Estate Owned (in millions)** 

37.1 1.7 9.5 9.8 16.0 11.7 3.2 8.4 2.2 4.0 7.6 

All other real estate owned..................................... $1,992.9 $60.7 $436.7 $638.1 $857.3 $571.6 $166.7 $207.9 $45.5 $235.7 $765.5

 Construction, development and land.................... 221.4 8.3 61.7 43.3 108.1 51.3 114.4 15.0 8.3 8.8 23.7

 Commercial real estate......................................... 371.6 10.8 117.6 173.7 69.4 153.0 21.5 50.7 12.7 59.3 74.4

 Multifamily residential real estate.......................... 283.4 2.4 37.1 163.9 80.1 56.8 2.8 10.9 2.6 110.7 99.6

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

Troubled Real Estate Asset Rates***

 (% of total RE assets) 

1,170.8 40.3 231.3 275.6 623.7 327.5 46.8 134.5 25.1 58.6 578.4 

All real estate loans................................................. 1.34 1.25 1.18 1.98 1.19 1.69 1.18 0.90 0.77 1.80 1.28

 Construction, development and land.................... 2.21 2.16 2.07 2.10 2.48 2.84 4.23 1.65 2.02 0.71 1.72

 Commercial real estate......................................... 2.43 2.12 1.95 3.60 2.00 2.75 1.73 2.07 1.42 3.83 2.04

 Multifamily residential real estate.......................... 1.40 1.22 1.24 2.99 0.80 2.13 1.30 1.12 1.23 8.72 0.72

 1-4 Family residential............................................ 1.21 1.12 1.02 1.61 1.16 1.49 0.80 0.78 0.64 1.11 1.33 

*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. 
ALL FDIC-INSURED INSTITUTIONS 

• Strong Deposit Growth In The First Quarter Reverses A Seasonal Pattern 

• BIF Reserve Ratio Dips To 1.37 Percent; SAIF Ratio Holds At 1.36 Percent 

• No Insured Institution Fails In The First Quarter Of 1998 

The total assets of the nation’s 10,779 FDIC-insured 

depository institutions increased by $110 billion from 

December 31 to March 31. About half of this growth 

was funded by deposits, which increased by $50 billion 

during the period. This first-quarter deposit growth, 

which followed growth of $114 billion in the fourth quarter, contrasts with the seasonal patterns evident in 

each of the nine previous years, in which total deposits 

declined in the first quarter after sharp increases in the 

fourth quarter. Of the first-quarter asset growth of 1.8 

percent, proportionately more growth occurred in securities, which rose 3 percent, than in loans, up 1.6 percent. 

Nearly 95 percent of all insured institutions currently 

qualify for the best rating under the FDIC’s risk-based 

premium system and pay no premiums for deposit insurance. However, despite low assessment revenue, 

both deposit insurance funds managed by the FDIC 

experienced growth in the first quarter of 1998, as high 

investment earnings and low insurance costs fueled 

net income. The Bank Insurance Fund (BIF) increased 

to $28.6 billion on March 31 from $28.3 billion at yearend 1997, while the Savings Association Insurance 

Fund (SAIF) rose to $9.5 billion from $9.4 billion. Insured deposits also increased during the first quarter, 

though at a somewhat slower pace than total deposits. 

Deposits insured by the BIF rose 1.1 percent, resulting 

in a slight decline in the fund’s reserve ratio, from 1.38 

percent on December 31 to 1.37 percent on March 

31. The reserve ratio of the SAIF remained unchanged 

at 1.36 percent despite a 1.2 percent rise in SAIFinsured deposits. The reserve ratios of both funds comfortably exceed the Designated Reserve Ratio (DRR) 

of 1.25 percent. However, current law requires that the 

amount by which the SAIF exceeds the DRR on January 1, 1999, is to be moved into a Special Reserve, 

which is to be excluded from the reserve ratio calculation and available for insurance purposes only under 

dire conditions. No such provisions exist for the BIF. 

There were no insured-institution failures in the first 

quarter of 1998. 1 For the SAIF, this marks the sixth 

consecutive quarter without a failure. 

Interstate banking. The map below is a new addition 

this quarter. It depicts the percentage of offices in each 

state that were owned by banks and thrifts headquartered in other states as of March 31, 1998. Acquisitions 

that were pending on this date are not reflected. 

1A BIF-insured commercial bank with total assets of $42 million failed

on April 9, 1998.

Interstate Branches as a Percent of Total Offices, March 31, 1998 

VT: 14.8 

3.5 

Alaska 

22.7 

Arizona 

45.6 Arkansas 

13.0 

California 

2.2 

Colorado 

22.6 

CT: 35.8 

DE: 16.2 

DC: 91.0 

FL 

43.4 

Georgia 

39.3 

Hawaii 

0.3 

Idaho 

81.8 

Illinois 

9.5 

IN 

12.0 

Iowa 

9.1 

Kansas 

17.2 Kentucky 

12.4 

LA 

9.1 

ME 

17.3 

MD: 36.9 

MA: 14.5 

MI 

8.8 

Minnesota 

0.1 

MS 

16.3 

Missouri 

20.9 

Montana 

0.7 

Nebraska 

7.2 Nevada 

56.1 

NH: 14.4 

NJ: 38.0 

New 

Mexico 

25.1 

NY 

18.3 

N. Carolina 

2.8 

North 

Dakota 

8.4 

Ohio 

3.1 

Oklahoma 

10.9 

Oregon 

70.7 

PA 

3.6 

RI: 1.4 

SC 

30.6 

South 

Dakota 

4.9 

Tennessee 

8.0 

Texas 

1.9 

Utah 

20.7 

Virginia 

35.7 

Washington 

50.7 

WV 

10.4 

Wisconsin 

1.2 

Wyoming 

14.0 

Puerto 

Rico 

3.7 

Between 15% and 30% 

Less than 1% 

Greater than 30% 

Between 1% and 15% 

Alabama 

FDIC Quarterly Banking Profile

First Quarter 1998 15 All FDIC-Insured Institutions
 

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

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

Number of institutions reporting...................................... 10,779 11,337 10,923 11,452 11,970 12,603 13,220 

Total assets..................................................................... $6,151,513 $5,663,665 $6,041,133 $5,606,612 $5,338,420 $5,019,085 $4,707,056 

Total deposits.................................................................. 4,175,971 3,920,515 4,125,815 3,925,066 3,769,481 3,611,619 3,528,486 

Number of problem institutions....................................... 83 112 92 117 193 318 572 

Assets of problem institutions (in billions)....................... $8 $10 $7 $12 $31 $73 $334 

Number of failed/assisted institutions............................. 0 0 1 6 8 15 50 

Assets of failed/assisted institutions (in billions)............. $0.00 $0.00 $0.03 $0.22 $1.21 $1.57 $9.67 

**As of March 31. 

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

(dollar figures in millions) 

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

Preliminary 

1st Quarter 4th Quarter 1st Quarter % Change 

1998 1997 1997 97:1-98:1 

10,779 10,923 11,337 -4.9 

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

CONDITION DATA 

1,800,664 1,782,277 1,747,214 3.1 

Total assets................................................................................. $6,151,513 $6,041,133 $5,663,665 8.6

 Loans secured by real estate................................................ 1,909,850 1,875,577 1,783,012 7.1

 1-4 Family residential........................................................ 1,250,059 1,225,711 1,165,773 7.2

 Home equity loans........................................................... 114,009 115,632 105,104 8.5

 Multifamily residential property.......................................... 99,264 98,804 97,661 1.6

 Commercial real estate..................................................... 392,856 387,728 368,529 6.6

 Construction, development and land................................. 111,040 107,958 96,708 14.8

 Other real estate loans...................................................... 56,632 55,376 54,340 4.2

 Commercial & industrial loans............................................... 837,536 812,098 746,218 12.2

 Loans to individuals............................................................... 589,867 609,129 589,964 -0.0

 Credit cards & related plans................................................ 222,339 242,616 227,015 -2.1

 Other loans & leases............................................................. 395,466 377,276 348,026 13.6

 Less: Unearned income & contra accounts.......................... 4,584 4,739 5,381 -14.8

 Total loans & leases................................................................ 3,728,135 3,669,341 3,461,839 7.7

 Less: Reserve for losses......................................................... 62,250 61,728 60,471 2.9

 Net loans & leases.................................................................... 3,665,885 3,607,613 3,401,368 7.8

 Securities .................................................................................. 1,154,537 1,120,569 1,071,205 7.8

 Other real estate owned............................................................ 5,726 5,876 6,994 -18.1

 Goodwill and other intangibles.................................................. 78,050 72,700 64,374 21.2

 All other assets.......................................................................... 1,247,316 1,234,377 1,119,725 11.4 

Total liabilities and capital........................................................... 6,151,513 6,041,133 5,663,665 8.6

 Deposits..................................................................................... 4,175,971 4,125,815 3,920,515 6.5

 Other borrowed funds................................................................ 1,077,979 1,039,284 949,885 13.5

 Subordinated debt..................................................................... 68,912 64,924 54,695 26.0

 All other liabilities....................................................................... 307,229 303,746 263,019 16.8

 Equity capital............................................................................. 521,422 507,364 475,551 9.6 

Loans and leases 30-89 days past due...................................... 46,542 47,183 46,925 -0.8 

Noncurrent loans and leases...................................................... 36,715 36,194 37,966 -3.3 

Restructured loans and leases.................................................... 5,318 5,853 7,864 -32.4 

Direct and indirect investments in real estate............................. 1,187 1,254 1,264 -6.1 

Mortgage-backed securities........................................................ 584,974 564,780 533,401 9.7 

Earning assets............................................................................. 5,386,738 5,270,780 4,977,363 8.2 

Unused loan commitments.......................................................... 3,443,510 3,197,339 2,801,921 22.9 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

Preliminary 

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

1997 1996 %Change 1998 1997 97:1-98:1 

$408,726 $384,449 6.3 $106,907 $99,253 7.7 

205,601 191,772 7.2 54,995 49,268 11.6

203,125 192,677 5.4 51,912 49,985 3.9 

21,992 18,819 16.9 5,385 4,877 10.4 

111,535 101,023 10.4 31,168 26,424 18.0 

191,022 186,237 2.6 51,539 45,967 12.1 

3,106 2,039 52.3 1,441 661 118.1 

36,747 31,203 17.8 9,618 9,359 2.8 

14 (157) N/M 529 7 N/M

68,019 59,323 14.7 18,507 16,874 9.7 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE III-C. Selected Insurance Fund Indicators 

(dollar figures in millions) Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

1998 1997 1997 97:1-98:1 

Bank Insurance Fund* 

Reserve ratio (%)**.................................................................. 1.37 1.38 1.33 2.9 

Fund balance (unaudited)......................................................... $28,559 $28,293 $27,042 5.6 

Estimated insured deposites...................................................... 2,079,088 2,056,172 2,026,053 2.6 

SAIF-member Oakars............................................................ 31,760 31,339 23,666 34.2 

BIF-members..................................................................... 2,047,328 2,024,833 2,002,386 2.2 

Assessment base.................................................................. 2,827,534 2,786,455 2,637,654 7.2 

SAIF-member Oakars............................................................ 33,397 33,023 25,607 30.4 

BIF-members..................................................................... 2,794,137 2,753,432 2,612,046 7.0 

Savings Association Insurance Fund 

Reserve ratio (%)**.................................................................. 1.36 1.36 1.31 3.6 

Fund balance (unaudited)......................................................... $9,484 $9,368 $9,010 5.3 

Estimated insured deposites...................................................... 698,086 689,802 686,593 1.7 

BIF-members..................................................................... 264,676 246,408 223,817 18.3 

SAIF-member Oakars............................................................ 60,688 60,281 51,460 17.9 

Other SAIF members............................................................ 372,723 383,113 411,316 -9.4 

Assessment base.................................................................. 731,608 721,079 713,271 2.6 

BIF-members..................................................................... 265,318 247,052 224,022 18.4 

SAIF-member Oakars............................................................ 66,058 65,229 56,470 17.0 

Other SAIF members............................................................ 400,231 408,798 432,779 -7.5 

* Includes IBAs 

**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 

1.5 Balance Deposits Balance Deposits 

12/91 -7,028 1,957,722 101 776,351 1.25 

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 2,056,172 9,368 689,802 

3/98 28,559 2,079,088 9,484 698,086 

* Insured deposit amounts are estimates. 1998 fund balances are unaudited. 

-0.5 

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

TABLE IV-C. Closed/Assisted Institutions 

-0.36 

-0.01 

0.69 

1.30 1.34 1.38 1.37 

0.01 0.04 

1.30 

1.36 1.36 

1.15 

0.47 

0.17 

0.28 

12/91 12/92 12/93 12/94 12/95 12/96 12/97 03/98 

BIF 

SAIF 

---------------------------------- ------------ ---- Target Ratio -----------------------------------------------------

(dollar figures in millions) 

BIF Members 

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

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

SAIF Members 

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

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

* Through March 31. 

1998* 

0 

$0 

0 

$0 

1997* 1997 1996 1995 1994 1993 

0 

$0 

0 

$0 

1 

$27 

0 

$0 

5 

$182 

1 

$35 

6 13 41 

$753 $1,392 $3,539 

2 2 9 

$426 $129 $6,105 
TABLE V-C. Selected Indicators, By Fund Membership* 

(dollar figures in millions) 

BIF Members 

Number of institutions reporting 

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

 Other BIF members................................................................. 

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

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

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

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

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

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

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

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

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

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

SAIF Members 

Number of institutions reporting 

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

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

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

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

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

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

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

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

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

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

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

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

1998** 1997* * 1997 1996 1995 1994 1993 

9,289 

775 

8,514 

$5,405,588 

3,668,911 

16,645 

1.25 

14.81 

0.68 

68 

$5 

0 

0 

1,490 

118 

1,372 

$745,925 

507,059 

1,862 

1.01 

11.67 

0.92 

15 

$3 

0 

$0 

9,736 

804 

8,932 

$4,917,351 

3,398,773 

15,089 

1.24 

14.83 

0.75 

80 

$6 

0 

0 

1,601 

98 

1,503 

$746,313 

521,742 

1,785 

0.97 

11.86 

1.09 

32 

$5 

0 

$0 

9,405 

791 

8,614 

$5,285,375 

3,611,422 

61,492 

1.22 

14.45 

0.67 

73 

$5 

1 

27 

1,518 

115 

1,403 

$755,758 

514,393 

6,527 

0.95 

11.20 

0.99 

19 

$2 

0 

$0 

9,823 

793 

9,030 

$4,857,764 

3,404,211 

54,485 

1.17 

14.14 

0.77 

86 

$7 

5 

182 

1,629 

91 

1,538 

$748,848 

520,855 

4,838 

0.66 

8.00 

1.07 

31 

$6 

1 

$35 

10,242 10,759 

807 719 

9,436 10,040 

$4,576,263 $4,246,786 

3,224,307 3,061,457 

50,764 46,866 

1.15 1.14 

14.32 14.43 

0.89 1.06 

151 264 

$20 $42 

6 13 

753 1,392 

1,728 1,844 

76 55 

1,652 1,789 

$762,157 $772,299 

545,174 550,162 

5,601 4,117 

0.76 0.56 

9.47 7.17 

1.12 1.22 

42 54 

$11 $31 

2 2 

$426 $129 

11,291

569

10,722 

$3,949,695 

2,951,979 

44,498 

1.17 

14.86 

1.69 

472 

$269 

41 

3,539 

1,929

28

1,901 

$757,362 

576,507 

5,381 

0.72 

9.74 

1.85 

100 

$65 

9 

$6,105 

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

**Through March 31, ratios annualized where appropriate. 

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

(dollar figures in millions) 

MARCH 31, 1998 

Commercial Banks and Savings Institutions

Number of Total Domestic

Institutions Assets Deposits* 

 Estimated Insured Deposits 

BIF SAIF Total 

 FDIC-Insured Commercial Banks............................................ 9,024 $5,111,230 $2,939,270 $1,894,423 $226,566 $2,120,989

 BIF-member......................................................................... 8,922 5,056,003 2,898,836 1,882,657 204,196 2,086,854

 SAIF-member....................................................................... 102 55,227 40,434 11,766 22,369 34,135

 FDIC-Supervised.................................................................. 5,484 894,337 675,150 482,423 46,762 529,184

 OCC-Supervised.................................................................. 2,550 2,972,043 1,716,058 1,101,592 144,721 1,246,313

 Federal Reserve-Supervised............................................... 990 1,244,851 548,063 310,409 35,083 345,492

 FDIC-Insured Savings Institutions............................................ 1,755 1,040,283 708,128 183,325 471,520 654,845

 OTS-Supervised Savings Institutions................................... 1,194 781,199 517,258 61,964 416,722 478,686

 BIF-member...................................................................... 37 146,999 92,049 42,931 43,999 86,930

 SAIF-member.................................................................... 1,157 634,200 425,209 19,033 372,723 391,756

 FDIC-Supervised State Savings Banks............................... 561 259,084 190,870 121,361 54,798 176,159

 BIF-member...................................................................... 330 202,586 149,454 120,400 16,480 136,880

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

Total Commercial Banks and 

231 56,498 41,416 961 38,318 39,280 

 and Savings Institutions...................................................... 10,779 6,151,513 3,647,398 2,077,748 698,086 2,775,834

 BIF-member............................................................................. 9,289 5,405,588 3,140,339 2,045,988 264,676 2,310,663

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

Other FDIC-Insured Institutions 

1,490 745,925 507,059 31,760 433,410 465,171 

 U.S. Branches of Foreign Banks ............................................. 27 8,477 2,765 1,340 0 1,340 

Total FDIC-Insured Institutions................................................ 10,806 6,159,990 3,650,163 2,079,088 698,086 2,777,174 

*Excludes $529 billion in foreign office deposits, which are uninsured. 
 TABLE VII-C. Assessment Base Distribution and Rate Schedules

 BIF Assessment Base Distribution

 Assessable Deposits in Millions as of March 31, 1998

 Supervisory and Capital Ratings as of December 31, 1997

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

8,881 

$2,789,117 

110 

$15,759 

4 

$361 

95.3% 

98.6% 

1.2% 

0.6% 

0.0% 

0.0% 

238 2.6% 

$17,146 0.6% 

20 0.2% 

$1,991 0.1% 

0 0.0% 

$0 0.0% 

43 

$1,790 

13 

$1,082 

7 

$289 

0.5%

0.1%

0.1%

0.0%

0.1%

0.0% 

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

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

 by on-site examinations. Includes U.S. branches of foreign banks.

 SAIF Assessment Base Distribution

 Assessable Deposits in Millions as of March 31, 1998

 Supervisory and Capital Ratings as of December 31, 1997

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

1,360 

$698,428 

10 

$4,206 

1 

$57 

91.3% 

95.5% 

0.7% 

0.6% 

0.1% 

0.0% 

90 6.0% 

$24,783 3.4% 

7 0.5% 

$2,437 0.3% 

1 0.1% 

$27 0.0% 

17 

$1,374 

4 

$295 

0 

$0 

1.1%

0.2%

0.3%

0.0%

0.0%

0.0% 

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

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

 by on-site examinations.

 Assessment Rate Schedules

 Second Semiannual 1998 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. 
Number of FDIC-Insured "Problem" Institutions, 

1990 - 1998 

Number of Institutions 

1,500 

1,000 

500 

0 

12/90 12/91 12/92 12/93 12/94 12/95 3/96 6/96 9/96 12/96 3/97 6/97 9/97 12/97 3/98 

1,492 

1,426 

1,063 

572 

318 

193 169 137 125 117 112 103 98 92 83 

Savings Institutions 

Commercial Banks 

Savings Institutions 480 410 276 146 71 49 42 38 36 35 35 29 27 21 16 

Commercial Banks 1,012 1,016 787 426 247 144 127 99 89 82 77 74 71 71 67 

Assets of FDIC-Insured "Problem" Institutions, 

1990 - 1998 

$ Billions 

800 

600 

400 

200 

0 

12/90 12/91 12/92 12/93 12/94 12/95 3/96 6/96 9/96 12/96 3/97 6/97 9/97 12/97 3/98 

$640 

$819 

$592 

$334 

$72 

$31 $27 $18 $15 $12 $10 $8 $7 $7 $8 

Savings Institutions 

Commercial Banks 

Savings Institutions 298 291 184 92 39 14 13 10 8 7 5 3 2 2 2 

Commercial Banks 342 528 408 242 33 17 13 8 7 5 5 5 5 5 5 

FDIC Quarterly Banking Profile

All FDIC-Insured Institutions 20 First Quarter 1998
NOTES TO USERS 

This publication contains financial data and other information 

for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding the 

comparability of source data and reporting differences over 

time. The information presented in the FDIC Quarterly Bank

ing Profile is divided into the following groups of institutions: 

FDIC-Insured Commercial Banks 

(Tables I-A through V-A.) 

This section covers commercial banks insured by the FDIC 

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

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

the three federal commercial bank regulators (the Board of 

Governors of the Federal Reserve System, the FDIC or the 

Office of the Comptroller of the Currency). 

FDIC-Insured Savings Institutions 

(Tables I-B through V-B.) 

This section covers savings institutions insured by either BIF 

or SAIF that operate under state or federal banking codes 

applicable to thrift institutions, except for one self-liquidating 

institution primarily funded by the FSLIC Resolution Fund 

(FRF). Savings institutions in Resolution Trust Corporation 

conservatorships are also excluded from these tables while 

in conservatorship. The institutions covered in this section 

are regulated by and submit financial reports to one of two 

Federal regulators – the FDIC or the Office of Thrift Supervision (OTS). 

FDIC-Insured Institutions by Insurance Fund 

(Tables I-C through VII-C.) 

Summary balance-sheet and earnings data are provided for 

commercial banks and savings institutions according to 

insurance fund membership. BIF-member institutions may 

acquire SAIF-insured deposits, resulting in institutions with 

some deposits covered by both insurance funds. Also, SAIF 

members may acquire BIF-insured deposits. The insurance 

fund membership does not necessarily reflect which fund 

insures the largest percentage of an institution's deposits. 

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

each include deposits from both insurance funds. Depository 

institutions that are not insured by the FDIC through either the 

BIF or SAIF are not included in the FDIC Quarterly Banking 

Profile . U.S. branches of institutions headquartered in foreign 

countries and non-deposit trust companies are not included 

unless otherwise indicated. Efforts are made to obtain financial reports for all active institutions. However, in some cases, 

final financial reports are not available for institutions that 

have closed or converted their charter. 

DATA SOURCES 

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Call Reports and the OTS 

Thrift Financial Reports submitted by all FDIC-insured 

depository institutions. This information is stored on and 

retrieved from the FDIC's Research Information System 

(RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting and 

accounting requirements of the FFIEC Call Reports . Beginning in March 1997, both Thrift Financial Reports and Call 

Reports are completed on a fully consolidated basis. Previously, the consolidation of subsidiary depository institutions 

was prohibited. Now, parent institutions file consolidated 

reports, while their subsidiary financial institutions continue to 

file separate reports. Data from subsidiary institution reports 

are included in the Quarterly Banking Profile tables, which 

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

any double-counting of subsidiary data. 

All asset and liability figures used in calculating performance 

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

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

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

includes the results of all merged institutions. No adjustments 

are made for “purchase accounting” mergers. Growth rates 

represent the percentage change over a 12-month period in 

totals for institutions in the base period to totals for institutions 

in the current period. Tables III and IV do not provide growth 

rates for the “Asset Size Distribution” since many institutions 

migrate between size groups. 

All data are collected and presented based on the location of 

each reporting institution's main office. Reported data may 

include assets and liabilities located outside of the reporting 

institution's home state. Also, when a main office is relocated 

to another region, no adjustments are made to regional 

growth rates. In addition, institutions may change their charters, resulting in an inter-industry migration, e.g., savings 

institutions can convert to commercial banks or commercial 

banks may convert to savings institutions. These situations 

can affect state and regional statistics. 

RECENT ACCOUNTING CHANGES 

Adoption of GAAP Reporting – Effective with the March 31, 

1997 Call Reports , generally accepted accounting principles 

(GAAP) were adopted as the reporting basis for the balance 

sheet, income statement and supporting schedules. New 

reporting instructions changed the amounts reported for a 

number of items used in the Quarterly Banking Profile , so that 

comparability with prior periods may be affected. Among the 

items most significantly affected by the new reporting rules 

are: loans & leases, reserve for losses, goodwill and other 

intangibles, all other assets and equity capital (see definitions 

below). More information on changes to the March 31, 1997 

Call Report is contained in Financial Institution Letter FIL-27-

97, which is available through the FDIC World Wide Web site 

at www.fdic.gov/banknews/fils/1997/fil9727.html, or from the 

FDIC Public Information Center, 801 17th Street, NW, Washington, DC 20434; telephone (800) 276-6003. Information on 

changes to the March 31, 1997 Thrift Financial Reports is 

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

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

Subchapter S Corporations –The Small Business Job Protection Act of 1996 changed the Internal Revenue Code to 

allow financial institutions to elect Subchapter S corporation 

status, beginning in 1997. A Subchapter S corporation is 

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

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

federal income taxes at the corporate level. Its taxable 

income flows through to its shareholders in proportion to their 

stock ownership, and the shareholders generally pay federal 

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

FDIC Quarterly Banking Profile

First Quarter 1998 21 Notes to Users
have the effect of reducing institutions’ reported taxes and 

increasing their after-tax earnings. 

The election of Subchapter S status may result in an increase 

in shareholders’ personal tax liability. Therefore, some S corporations may increase the amount of earnings distributed as 

dividends to compensate for higher personal taxes. 

DEFINITIONS (in alphabetical order) 

All other assets – total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

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

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

Federal funds sold are reported on a consolidated basis 

(domestic and foreign offices combined). Previously, Federal 

funds sold through foreign offices were reported as loans. 

All other liabilities – bank's liability on acceptances, limitedlife preferred stock, and other liabilities. 

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

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

“Oakar” institutions, it represents the adjusted attributable 

amount acquired from BIF members. 

Capital category distribution – each institution's capital 

category is calculated or estimated from its financial report 

and does not reflect supervisory upgrades or downgrades: 

Total Tier 1

Risk-Based Risk-Based Tier 1 Tangible

(Percent) Capital * Capital * Leverage Equity

Well-capitalized ≥10 and ≥6 and ≥5 Š

Adequately

capitalized ≥8 and ≥4 and ≥4 Š

Undercapitalized ≥6 and ≥3 and ≥3 Š

Significantly

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

Critically

undercapitalized Š Š Š ≤2

*As a percentage of risk-weighted assets.

For purpose of BIF and SAIF assessments, risk-based 

assessment rules combine the last three capital rating 

categories into a single “undercapitalized” category. 

Supervisory risk subgroup assignments are based on 

supervisory ratings. The strongest institutions (those rated 1 

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

those rated 4 or 5 are in subgroup C. 

Construction and development loans – includes loans for 

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

acquisition and development. 

Core capital – common equity capital plus noncumulative 

perpetual preferred stock plus minority interest in consolidated subsidiaries, less goodwill and other ineligible intangible assets. The amount of eligible intangibles (including 

servicing rights) included in core capital is limited in accordance with supervisory capital regulations. 

Cost of funding earning assets – total interest expense 

paid on deposits and other borrowed money as a percentage 

of average earning assets. 

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

which a contract could be exchanged in a transaction 

between willing parties, other than in a forced or liquidation 

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

fair value reported for that contract is calculated using this 

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

reporting banks use the best estimate of fair value based on 

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

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

Direct and indirect investments in real estate – excludes 

loans secured by real estate and property acquired through 

foreclosure. 

Earning assets – all loans and other investments that earn 

interest or dividend income. 

Efficiency Ratio – Noninterest expense less amortization of 

intangible assets as a percent of net interest income plus 

noninterest income. This ratio measures the proportion of net 

operating revenues that are absorbed by overhead 

expenses, so that a lower value indicates greater efficiency. 

Estimated insured deposits – estimated amount of insured 

deposits (account balances less than $100,000). The sum of 

all deposit balances in accounts of less than $100,000 plus 

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

multiplied by $100,000. 

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

liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the FDIC 

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

“assisted” when the institution remains open and receives 

some insurance funds in order to continue operating. 

FHLB advances – borrowings from the Federal Home Loan 

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

Report . Institutions that file a Call Report do not report borrowings ( “advances”) from the FHLB separately. 

Goodwill and other intangibles – intangible assets include 

servicing rights, purchased credit card relationships and 

other identifiable intangible assets. 

Loans secured by real estate – includes home equity loans, 

junior liens secured by 1-4 family residential properties and 

all other loans secured by real estate. 

Loans to individuals – includes outstanding credit card balances and other secured and unsecured consumer loans. 

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

with remaining maturities or repricing intervals of over five 

years. 

Mortgage-backed securities – certificates of participation in 

pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored 

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

Net charge-offs – total loans and leases charged off 

(removed from balance sheet because of uncollectibility), 

less amounts recovered on loans and leases previously 

charged off. 

Net interest margin – the difference between interest and 

dividends earned on interest-bearing assets and interest paid 

to depositors and other creditors, expressed as a percentage 

of average earning assets. No adjustments are made for 

interest income that is tax exempt. 

Net operating income – income excluding discretionary 

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

the portion applicable to securities gains (or losses). 

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

nonaccrual status. 

FDIC Quarterly Banking Profile

Notes to Users 22 First Quarter 1998
Noncurrent loans & leases – the sum of loans and leases 

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

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

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

following: interest-rate contracts (defined as the notional 

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

contracts). 

Futures and forward contracts – a contract in which the 

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

specified future date, a specific quantity of underlying at a 

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

underlyings, including the traditional agricultural or physical 

commodities, as well as currencies and interest rates. Futures contracts are standardized and are traded on organized 

exchanges which set limits on counterparty credit exposure. 

Forward contracts do not have standardized terms and are 

traded over the counter. 

Option contracts – a contract in which the buyer acquires 

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

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

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

the contract. 

Swaps – an obligation between two parties to exchange a series of cash flows at periodic intervals (settlement dates), for 

a specified period. The cash flows of a swap are either fixed, 

or determined for each settlement date by multiplying the 

quantity of the underlying (notional principal) by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not 

exchanged. 

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

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

trading liabilities, less revaluation losses on assets held in 

trading accounts. 

Other real estate owned – primarily foreclosed property. 

Direct and indirect investments in real estate ventures are 

excluded. The amount is reflected net of valuation allowances. For institutions that file a Thrift Financial Report 

(TFR) , the valuation allowance subtracted also includes 

allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported 

gross of valuation allowances. 

Percent of institutions with earnings gains – the percent 

of institutions that increased their net income (or decreased 

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

“Problem” institutions – federal regulators assign a composite rating to each financial institution, based upon an 

evaluation of financial and operational criteria. The rating is 

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

concern. “Problem” institutions are those institutions with 

financial, operational, or managerial weaknesses that 

threaten their continued financial viability. Depending upon 

the degree of risk and supervisory concern, they are rated 

either a “4” or “5”. For all BIF-member institutions, and for all 

SAIF-member institutions for which the FDIC is the primary 

federal regulator, FDIC composite ratings are used. For all 

SAIF-member institutions whose primary federal regulator is 

the OTS, the OTS composite rating is used. 

Reserves for losses – the allowance for loan and lease 

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

Financial Report (TFR) included specific reserves, while Call 

Report filers included only general valuation allowances. 

Beginning March 31, 1997, TFR reporters net these specific 

reserves against each loan balance. Also beginning March 

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

included in the general valuation allowance. 

Restructured loans and leases – loan and lease financing 

receivables with terms restructured from the original contract. 

Excludes restructured loans and leases that are not in compliance with the modified terms. 

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

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

Return on equity – net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total equity capital. 

Risk-weighted assets – assets adjusted for risk-based capital definitions which include on-balance-sheet as well as offbalance-sheet items multiplied by risk-weights that range 

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

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

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

Securities – excludes securities held in trading accounts. 

Banks' securities portfolios consist of securities designated 

as “held-to-maturity”, which are reported at amortized cost 

(book value), and securities designated as “available-forsale”, reported at fair (market) value. 

Securities gains (losses) – realized gains (losses) on heldto-maturity and available-for-sale securities, before adjustments for income taxes. Thrift Financial Report (TFR) filers 

also include gains (losses) on the sales of assets held for 

sale. 

Troubled real estate asset rate – noncurrent real estate 

loans plus other real estate owned as a percent of total real 

estate loans and other real estate owned. 

Unearned income & contra accounts – unearned income 

and loans-in-process for TFR filers. Beginning March 31 

1997, TFR filers net the unearned income and the loans-inprocess against each loan balance, leaving just the unearned 

income on loans reported by Call Report filers. 

Unused loan commitments – includes credit card lines, 

home equity lines, commitments to make loans for construction, loans secured by commercial real estate, and unused 

commitments to originate or purchase loans. 

Volatile liabilities – the sum of large-denomination time 

deposits, foreign-office deposits, federal funds purchased, 

securities sold under agreements to repurchase, and other 

borrowings. 

Yield on earning assets – total interest, dividend and fee 

income earned on loans and investments as a percentage of 

average earning assets. 

FDIC Quarterly Banking Profile

First Quarter 1998 23 Notes to Users