Quarterly Banking Profile
 

FOURTH QUARTER 2004 

• Net Income Of $31.8 Billion Is Third-Highest Ever 

•	 Lower Gains On Sales Of Securities, Higher Noninterest Expenses Reduce 

Earnings 

• Residential Real Estate Anchors Strong Asset Growth 

• Industry Assets Surpass $10 Trillion For First Time 

• Number Of “Problem” Banks Falls To Six-Year Low 

Chart 1	 Chart 2 

22.4 

17.3 

21.8 

20.1 

22.7 22.5 20.9 22.0 

25.3 27.2 27.3 

25.4 

29.5 30.2 30.4 31.0 31.8 31.1 32.5 31.8 

0 

10 

20 

30 

$ Billion 

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

2000 2001 2002 2003 2004 

Securities and Other Gains/Losses, Net 

Net Operating Income 

Quarterly Earnings Remain Above $31 Billion 

for aFifth Consecutive Quarter 

3.0 

3.5 

4.0 

4.5 

5.0 

5.5 

Net Interest Margin (%) 

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

2000 2001 2002 2003 2004 

4.40 

3.81 

4.26 

3.62 

Assets < $100 Million 

Assets > $100 Million 

Community Banks’ Margins Continue to Improve 

Profits Recede From Record Levels 

Strong loan growth and wider net interest margins did not 

offset the negative effects of merger expenses at large 

banks and lower gains on sales of securities and other 

assets in the fourth quarter. Insured commercial banks and 

savings institutions reported $31.8 billion in net income 

for the quarter, a decline of $668 million (2.1 percent) 

from the record earnings registered in the third quarter. 

Nevertheless, the industry’s earnings were the third-highest ever reported, and represented a $787-million (2.5-percent) improvement over the fourth quarter of 2003. Also, 

the industry's net operating (core) income, which does not 

include gains on securities sales, set a new quarterly record 

of $30.9 billion. The average return on assets (ROA) was 

1.28 percent in the fourth quarter, marking the first time 

in two years that the industry’s quarterly ROA has been 

below 1.30 percent. Fewer than half of all insured banks 

and thrifts (48.4 percent) had an ROA of 1 percent or 

higher in the fourth quarter, but this was an improvement 

over the fourth quarter of 2003, when only 44.8 percent 

achieved this benchmark level of profitability. Almost 

two out of every three institutions (62.1 percent) had 

higher net income than in the fourth quarter of 2003. 

Strong Earning Asset Growth Lifts Net Interest Income 

One area of particular strength in fourth-quarter results 

was net interest income, which was $2.0 billion (2.6 percent) higher than the third quarter's total, and $6.4 billion 

(8.8 percent) more than the industry reported in the 

fourth quarter of 2003. The average net interest margin 

(NIM) increased by one basis point from the level of the 

third quarter, after declining in each of the previous three 

quarters and in nine of the previous ten quarters. More 

than half of all institutions (53.3 percent) reported margin 

improvement. More important than the slight positive 

change in margins was the industry's strong growth in 

interest-bearing assets during the quarter, as earning assets 

increased by $207.4 billion (2.4 percent). Noninterest 

income also helped earnings in the fourth quarter. It was 

up from both the third quarter, and from the level of a 

FEDERAL DEPOSIT INSURANCE CORPORATION	 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

year earlier. Total noninterest income was $4.3 billion 

(8.5 percent) higher than in the third quarter, and was 

$1.4 billion (2.5 percent) higher than in the fourth 

quarter of 2003. Servicing fee income increased by 

$981 million (27.2 percent) compared to the third 

quarter, while trading income was $864 million (60.1 

percent) higher, and investment banking fee income 

increased by $448 million (18.5 percent). Provisions 

for loan losses had a seasonal $391 million (5.3 percent) increase over the level of the third quarter, but 

were $1.1 billion (12.0 percent) lower than in the 

fourth quarter of 2003. 

Merger-Related Costs Contribute to Large Increase 

in Operating Expenses 

Noninterest expense increased by $5.5 billion (7.3 percent) from the level of the third quarter, fueled by 

increased payroll and employee benefits expenses related to recent large bank merger transactions, and by 

other merger-related expenses. In addition to the 

impact of these higher expenses at large banks, the 

industry's profits were also negatively affected by 

reduced gains on securities sales. Securities gains of 

$1.2 billion were $1.3 billion (52.9 percent) lower 

than in the third quarter, as rising interest rates caused 

the market values of fixed-rate securities to decline. 

Full-Year Earnings Set a New Record for Fourth 

Consecutive Year 

For all of 2004, insured institutions earned $123.0 billion, an increase of $2.5 billion (2.1 percent) compared to 2003. Almost two out of every three 

institutions (63.1 percent) reported higher net income 

Chart 3 

Strong Growth in Net Interest Income 

Provides aBoost to Earnings 

4th Quarter 2003 to 4th Quarter 2004 ($ Billion) 

in 2004. The improvement in total industry net 

income would have been greater, but for the accounting treatment of a few large mergers that occurred during 2004. Income earned by the acquired institutions 

before they were merged totaled more than $4.0 billion, but under purchase accounting rules, these earnings were not reflected in the total net income 

reported at year-end. Based on the reported results, 

the industry's ROA for 2004 was 1.29 percent, compared to a 1.38 percent ROA in 2003. Absent the 

effects of the merger accounting, the industry's ROA 

for 2004 would have been closer to 1.31 percent. 

More than half of all banks and thrifts (51.7 percent) 

had ROAs of 1 percent or better in 2004; in 2003, 

51.3 percent of all institutions achieved this feat. 

Slightly more than half of all institutions (50.4 percent) reported higher ROAs in 2004 than in 2003. 

The two main contributors to the earnings improvement in 2004 were higher net interest income (up 

$12.9 billion, or 4.6 percent), and lower provisions for 

loan losses (down $8.3 billion, or 22.2 percent). 

Against these areas of strength, the improvement in 

industry profits was limited by a $16.0-billion (5.7 percent) increase in noninterest expenses and a $3.7-billion (32.7 percent) decline in gains on securities sales. 

Smaller gains on loan sales (down $6.4 billion, or 44.2 

percent) and lower trading income (down $1.7 billion, 

or 14.9 percent) limited the year-to-year improvement 

in the industry's noninterest income to only $371 million (0.2 percent). The average net interest margin in 

2004 was 3.53 percent, 20 basis points lower than the 

average in 2003, and the lowest annual average for the 

industry since 1990. 

Chart 4 

Profitability Remained Near Historic 

High Levels in 2004 

Return on Assets (%) Return on Equity (%) 

9.15 

-1.07 

13.28 

0.48 

-0.06 

1.29 

'84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 

0 

5 

10 

15 

20 

0 

0.5 

1.0 

1.5 

2.0 

Increase in Increase in Increase in Increase in
 

Net Interest Noninterest Gains on Noninterest
 

Income Income Securities Sales Expense
 

Positive Factors 

Negative 

Factor 

Decline in 

Loan Loss 

Provision 

$6.4 

-$1.1 

$1.4 

$0.4 

$7.7 

-4.0 

-2.0 

0.0 

2.0 

4.0 

6.0 

8.0 

10.0 

FOURTH QUARTER 2004 2 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

Asset Quality Improvement Trend Enters Its 

Third Year 

Asset quality continued to improve in the fourth quarter, marking the ninth quarter in a row that troubled 

loans have declined. Noncurrent loans fell by $1.7 billion (3.4 percent) during the quarter. Net charge-offs 

registered a seasonal $1.7-billion (22.7 percent) 

increase from the level of the third quarter, but were 

down by $1.6 billion (14.7 percent) compared to the 

fourth quarter of 2003. This improvement from yearearlier levels was led by a $1.1-billion (44.9-percent) 

decline in charge-offs of loans to commercial and 

industrial (C&I) borrowers. Charge-offs of residential 

mortgage loans were also significantly lower than a 

year earlier, falling by $642 million (64.5 percent). 

Overall, the industry's net charge-off rate in the fourth 

quarter was 0.61 percent, the lowest fourth-quarter 

level since 1996. 

Noncurrent Rate Hits Another Historic Low 

The decline in noncurrent loans (loans 90 days or 

more past due or in nonaccrual status) during the 

fourth quarter was led by C&I noncurrents, which fell 

by $2.2 billion (16.3 percent). At the end of 2004, 

the total amount of noncurrent C&I loans stood at 

$11.2 billion, the lowest total since midyear 1999. 

The only other loan category with a significant decline 

in noncurrent loans was commercial real estate loans, 

where noncurrents fell by $432 million (7.6 percent). 

Noncurrent credit-card loans had a seasonal increase 

of $1.1 billion (15.3 percent) during the quarter. In 

other loan categories, noncurrent levels remained low. 

The percent of the industry's loans that were noncurrent declined from 0.85 percent to 0.80 percent during 

the quarter. This is the lowest this percentage has 

been in the 21 years that insured banks and thrifts 

have reported noncurrent loan amounts. 

Loss Reserves Register Largest Decline Since 1990 

The total allowance for loan losses held by insured 

institutions fell for the fourth consecutive quarter, and 

the fifth time in the last six quarters. The $1.7-billion 

(2.1-percent) decline is the largest quarterly drop registered during this period. The last time that the industry's reserves fell by a larger amount was the second 

quarter of 1990, when reserves shrank by $2.1 billion 

(3.5 percent). Since the middle of 2003, the industry’s 

loss reserves have fallen by $3.9 billion (4.5 percent). 

The reduction in reserves remains concentrated among 

large banks, which have been experiencing the greatest 

improvements in asset quality. In each of the last 

eight quarters, insured institutions with assets greater 

than $10 billion have set aside less in loan-loss provisions than they have charged-off. In the fourth quarter, the industry’s net charge-offs exceeded its loss 

provisions by $1.3 billion. The ratio of reserves to 

total loans fell from 1.40 percent to 1.34 percent during the quarter, its lowest level since the middle of 

1986. However, the decline in noncurrent loans during the quarter meant that the industry's “coverage 

ratio” improved from $1.65 in reserves for every $1.00 

of noncurrent loans to $1.68, its highest level since the 

end of 1999. 

Equity Capital Ratio Remains Above 10 Percent 

Equity capital growth continued to outpace growth in 

total assets, as the industry's equity-to-assets ratio rose 

for the sixth consecutive quarter. Internal capital generation remained strong, as retained earnings added 

$13.4 billion to capital in the fourth quarter. Higher 

goodwill added an additional $22.9 billion to equity. 

Equity capital increased by $38.5 billion (3.8 percent), 

and the industry's equity capital ratio rose from 10.13 

percent to 10.28 percent. This is the highest level for 

this ratio since 1938. Regulatory capital ratios, which 

Chart 5 Chart 6 

Noncurrent Loan Rates Are at Historic Lows 

Percent of Loans Noncurrent at Year-End 

C&I Net Charge-Offs Were Sharply Lower in 2004 

Annual Net Charge-Off Rate (%) 

0.00 

2.00 

4.00 

6.00 

8.00 

'84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 

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

5.46 

0.40 

0.51 

1.40 

3.24 

1.16 

1.94 

0.61 

Total Real Estate 

Commercial and Industrial 

Loans to Individuals 

All Other Loans (Includes loans to foreign governments, 

depository institutions, and 

lease receivables) 

0.28 0.16 

0.62 

2.76 

1.32 

0.54 

0.09 0.07 

'84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 

0.00 

1.00 

2.00 

3.00 

4.00 

Total Real Estate 

Commercial and Industrial 

Loans to Individuals 

All Other Loans (Includes loans to foreign governments, 

depository institutions, and 

lease receivables) 

ALL FDIC-INSURED INSTITUTIONS 3 FOURTH QUARTER 2004 
FDIC Quarterly Banking Profile 

do not include goodwill, remained below their record 

highs. At the end of 2004, more than 98.9 percent of 

all insured institutions, representing 99.8 percent of 

industry assets, met or exceeded the highest regulatory 

capital standards. 

Consumer Lending Provides Boost to Asset Growth 

Renewed vigor in residential mortgage lending, combined with continued strength in home equity and 

credit-card lending, kept asset growth strong in the 

fourth quarter. Residential mortgages increased by 

$54.2 billion (3.0 percent), mortgage-backed securities 

grew by $62.1 billion (5.9 percent), and home equity 

loans rose by $30.8 billion (6.7 percent). Together, 

they accounted for 71 percent of the total growth in 

interest-bearing assets in the fourth quarter. Creditcard loans also registered strong growth in the quarter, 

increasing by $34.2 billion (9.4 percent). Growth in 

commercial loans, while less spectacular, was still significant. Real estate construction loans increased by 

$17.8 billion (5.6 percent) during the quarter, commercial real estate loans were up by $17.4 billion (2.4 

percent), and C&I loans increased by $16.1 billion 

(1.7 percent). Loans to depository institutions 

declined by $52.8 billion (27.1 percent), due in part to 

a reduction in lending between related holding company subsidiaries. 

Deposit Growth Keeps Pace With Growth in Assets 

Total deposits increased by $200.8 billion (3.1 percent) 

during the fourth quarter, as domestic interest-bearing 

deposits grew by $113.3 billion (2.5 percent), noninterest-bearing deposits increased by $41.4 billion (4.0 

Chart 7 

percent), and deposits in foreign offices rose by $46.0 

billion (5.6 percent). Fed funds purchased declined by 

$13.3 billion (5.6 percent), while securities sold under 

agreements to repurchase fell by $40.0 billion (8.1 percent). Other nondeposit borrowings declined by $26.7 

billion (2.3 percent), even though Federal Home Loan 

Bank (FHLB) advances increased by $10.6 billion (2.0 

percent). 

The Number of Insured Institutions Falls Below 

9,000 For the First Time 

The number of insured commercial banks and savings 

institutions reporting financial results declined from 

9,024 to 8,975 during the fourth quarter. This is the 

first time that the number of insured depository institutions has dropped below 9,000. There were 35 new 

charters added during the quarter, while 80 charters 

were absorbed by mergers. No insured institutions 

failed during the quarter. For all of 2004, the industry 

saw a net decline of 206 institutions, compared to a 

net decline of 173 institutions in 2003. There were 

128 new charters added during 2004, and 322 charters 

were merged into other institutions. Three insured 

commercial banks and one insured savings institution 

failed during the year. The number of institutions on 

the FDIC’s “Problem List” fell from 95 to 80 during the 

fourth quarter, while assets of “Problem” institutions 

increased from $25.1 billion to $28.2 billion. This is 

the smallest number of “Problem” institutions since 

the end of 1999. At the beginning of 2004, there were 

116 “Problem” institutions, with total assets of $29.9 

billion. Three mutually-owned savings institutions, 

with $975 million in assets, converted to stock ownership during the fourth quarter. 

Chart 8 

4 

71 

-303 

-50 

1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004

-350 

-300 

-250 

-200 

-150 

-100 

-50 

0 

50 

100 

Quarterly Change in the Number of FDIC-Insured Institutions 

The Pace of Industry Consolidation 

Shows Signs of Stabilizing 

-100 

0 

100 

200 

300 

400 

$ Billion 

35 

43 

27 

22 

44 

35 

41 

79 

-17 

86 143 95 121 

141 

-27 

22 

214 

80 

58 147 

75 107 73 111 57 

8 

76 

-57 

54 63 37 40 50 87 39 134 140 138 113 60 

110 

150 

100 

133 

101 

27 

117 

22 37 

149 

180 

135 

171 

228 

12 

156 

354 

218 

171 

207 

Mortgage Assets 

Other Interest-Earning Assets 

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

2000 2001 2002 2003 2004 

Residential Real Estate Was aMajor Contributor 

to Asset Growth in the Fourth Quarter 

FOURTH QUARTER 2004 4 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

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

2004 2003 2002 2001 2000 1999 1998 

Return on assets (%) ............................................................... 1.29 1.38 1.30 1.14 1.14 1.26 1.16 

Return on equity (%) ................................................................ 13.28 15.03 14.12 12.97 13.53 14.71 13.51 

Core capital (leverage) ratio (%) .............................................. 8.12 7.88 7.86 7.78 7.71 7.80 7.59 

Noncurrent assets plus 

other real estate owned to assets (%) ................................... 0.53 0.75 0.90 0.87 0.71 0.63 0.66 

Net charge-offs to loans (%) .................................................... 0.56 0.78 0.97 0.83 0.59 0.53 0.59 

Asset growth rate (%) ............................................................... 11.34 7.58 7.20 5.44 8.41 5.40 8.05 

Net interest margin (%) ............................................................ 3.53 3.73 3.96 3.78 3.77 3.89 3.91 

Net operating income growth (%) ............................................ 4.43 15.90 18.36 -0.85 1.71 19.73 3.04 

Number of institutions reporting ............................................... 8,975 9,181 9,354 9,614 9,904 10,222 10,464 

Commercial banks ................................................................ 7,630 7,770 7,888 8,080 8,315 8,580 8,774 

Savings institutions ............................................................... 1,345 1,411 1,466 1,534 1,589 1,642 1,690 

Percentage of unprofitable institutions (%) .............................. 5.79 5.95 6.67 8.24 7.53 7.64 5.97 

Number of problem institutions ................................................ 80 116 136 114 94 79 84 

Assets of problem institutions (in billions) ................................ $28 $30 $39 $40 $24 $10 $11 

Number of failed/assisted institutions ...................................... 4 3 11 4 7 8 3 

* Excludes insured branches of foreign banks (IBAs). 

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

(dollar figures in millions) 

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

4th Quarter 

2004 

3rd Quarter 

2004 

4th Quarter 

2003 

%Change 

03:4-04:4 

8,975 9,024 9,181 -2.2 

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

CONDITION DATA 

2,096,535 2,092,595 2,045,975 2.5 

Total assets .......................................................................................................... $10,104,623 $9,876,974 $9,075,251 11.3 

Loans secured by real estate ............................................................................ 3,682,979 3,554,449 3,143,735 17.2 

1-4 Family residential mortgages ................................................................... 1,836,853 1,782,659 1,611,074 14.0 

Commercial real estate ................................................................................... 751,991 734,602 682,115 10.2 

Construction and development ....................................................................... 336,792 319,033 272,205 23.7 

Home equity lines ........................................................................................... 490,670 459,830 346,080 41.8 

Commercial & industrial loans ........................................................................... 968,334 952,252 920,977 5.1 

Loans to individuals ........................................................................................... 930,240 895,471 848,201 9.7 

Credit cards .................................................................................................... 399,239 365,001 339,433 17.6 

Farm loans ......................................................................................................... 48,844 48,951 46,782 4.4 

Other loans & leases ......................................................................................... 492,054 533,503 477,767 3.0 

Less: Unearned income ..................................................................................... 3,355 3,196 3,004 11.7 

Total loans & leases .......................................................................................... 6,119,096 5,981,431 5,434,457 12.6 

Less: Reserve for losses ................................................................................... 82,049 83,796 85,575 -4.1 

Net loans and leases ......................................................................................... 6,037,046 5,897,635 5,348,883 12.9 

Securities ........................................................................................................... 1,859,958 1,796,100 1,770,810 5.0 

Other real estate owned .................................................................................... 4,281 4,647 5,318 -19.5 

Goodwill and other intangibles .......................................................................... 315,094 293,006 189,436 66.3 

All other assets .................................................................................................. 1,888,243 1,885,587 1,760,804 7.2 

Total liabilities and capital ..................................................................................... 10,104,623 9,876,974 9,075,251 11.3 

Deposits ............................................................................................................. 6,584,201 6,383,409 5,954,314 10.6 

Domestic office deposits ................................................................................. 5,718,309 5,563,549 5,213,143 9.7 

Foreign office deposits ................................................................................... 865,892 819,860 741,171 16.8 

Other borrowed funds ........................................................................................ 1,904,941 1,963,950 1,734,626 9.8 

Subordinated debt ............................................................................................. 118,536 110,803 106,683 11.1 

All other liabilities ............................................................................................... 457,792 418,133 448,967 2.0 

Equity capital ..................................................................................................... 1,039,153 1,000,681 830,660 25.1 

Loans and leases 30-89 days past due ................................................................ 51,267 49,621 54,705 -6.3 

Noncurrent loans and leases ................................................................................ 48,902 50,639 60,973 -19.8 

Restructured loans and leases ............................................................................. 2,640 2,532 3,399 -22.3 

Direct and indirect investments in real estate ....................................................... 848 851 713 19.0 

Mortgage-backed securities .................................................................................. 1,110,718 1,048,575 982,110 13.1 

Earning assets ...................................................................................................... 8,804,629 8,597,219 7,854,385 12.1 

FHLB advances .................................................................................................... 541,736 531,176 479,735 12.9 

Unused loan commitments ................................................................................... 6,552,278 6,331,976 5,848,454 12.0 

Trust assets .......................................................................................................... 14,784,400 13,981,548 13,047,336 13.3 

Assets securitized and sold** ............................................................................... 928,237 891,590 870,560 6.6 

Notional amount of derivatives** ........................................................................... 88,313,781 84,837,602 71,379,983 23.7 

INCOME DATA 

4th Quarter 

2003 

%Change 

03:4-04:4 

Full Year 

2004 

Full Year 

2003 %Change 

4th Quarter 

2004 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

$418,816 $404,551 3.5 $115,525 $101,554 13.8 

123,991 122,631 1.1 36,462 28,898 26.2 

294,826 281,920 4.6 79,063 72,656 8.8 

29,042 37,350 -22.2 7,795 8,854 -12.0 

203,035 202,663 0.2 55,406 54,049 2.5 

295,644 279,679 5.7 81,171 73,508 10.4 

7,663 11,382 -32.7 1,156 727 59.0 

58,163 58,871 -1.2 14,961 14,488 3.3 

295 425 -30.5 73 401 -81.7 

122,970 120,489 2.1 31,771 30,984 2.5 

8,561 7,328 16.8 -53 1,065 N/M 

32,066 40,806 -21.4 9,139 10,709 -14.7 

64,899 90,723 -28.5 18,405 28,251 -34.9 

58,071 29,766 95.1 13,365 2,733 389.0 

117,290 112,318 4.4 30,914 30,030 2.9 

** Commercial banks only. N/M - Not Meaningful 

ALL FDIC-INSURED INSTITUTIONS 5 FOURTH QUARTER 2004 
FDIC Quarterly Banking Profile 

TABLE III-A. Full Year 2004, All FDIC-Insured Institutions 

FULL YEAR 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,975 34 5 1,730 4,424 990 132 465 1,120 75 

Commercial banks ............................................... 7,630 30 5 1,725 4,019 250 101 414 1,026 60 

Savings institutions .............................................. 1,345 4 0 5 405 740 31 51 94 15 

Total assets (in billions) ......................................... $10,104.6 $382.5 $1,881.3 $138.3 $3,301.3 $1,503.6 $104.1 $51.6 $143.6 $2,598.4 

Commercial banks ............................................... 8,412.8 373.4 1,881.3 137.7 2,988.9 311.1 53.9 41.0 125.8 2,499.7 

Savings institutions .............................................. 1,691.8 9.1 0.0 0.6 312.3 1,192.5 50.2 10.5 17.8 98.7 

Total deposits (in billions) ....................................... 6,584.2 117.4 1,123.1 113.0 2,395.2 873.6 59.9 38.9 117.3 1,745.8 

Commercial banks ............................................... 5,592.8 115.7 1,123.1 112.6 2,190.8 198.0 28.8 31.1 103.2 1,689.6 

Savings institutions .............................................. 991.4 1.7 0.0 0.4 204.4 675.6 31.1 7.8 14.1 56.2 

Net income (in millions) .......................................... 122,970 13,373 13,864 1,646 40,696 16,358 1,768 860 1,546 32,859 

Commercial banks ............................................... 104,724 12,633 13,864 1,642 37,319 4,791 1,033 614 1,418 31,410 

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

Performance Ratios (%) 

18,246 740 0 4 3,377 11,567 734 246 128 1,450 

Yield on earning assets .......................................... 5.02 11.25 4.02 5.68 5.26 4.80 6.88 4.54 5.40 4.54 

Cost of funding earning assets ............................... 1.49 2.20 1.52 1.61 1.40 1.75 2.17 1.33 1.53 1.27 

Net interest margin .............................................. 3.53 9.05 2.50 4.07 3.86 3.05 4.71 3.20 3.86 3.27 

Noninterest income to assets ................................. 2.13 11.18 2.51 0.69 1.51 1.20 2.26 6.55 1.16 1.96 

Noninterest expense to assets ............................... 3.10 9.03 3.26 2.77 2.91 2.27 3.04 6.89 3.17 2.80 

Loan and lease loss provision to assets ................. 0.30 3.96 0.25 0.16 0.22 0.08 1.05 0.11 0.17 0.07 

Net operating income to assets .............................. 1.23 3.79 0.74 1.22 1.28 1.06 1.64 1.64 1.07 1.26 

Pretax return on assets .......................................... 1.90 6.21 1.09 1.51 1.89 1.81 2.56 2.43 1.41 1.98 

Return on assets .................................................... 1.29 4.01 0.76 1.23 1.30 1.18 1.66 1.66 1.10 1.35 

Return on equity ..................................................... 13.28 22.16 10.35 11.45 13.48 11.61 16.81 10.03 10.18 13.69 

Net charge-offs to loans and leases ...................... 0.56 4.67 0.91 0.21 0.30 0.12 1.57 0.59 0.31 0.25 

Loan and lease loss provision to net charge-offs ... 90.57 108.82 63.10 118.33 105.22 100.24 85.49 67.31 99.36 52.04 

Efficiency ratio ........................................................ 58.03 45.29 70.16 62.07 57.10 56.46 45.53 72.42 66.92 57.71 

% of unprofitable institutions .................................. 5.79 5.88 0.00 2.02 7.05 5.15 3.79 13.98 4.20 4.00 

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

Condition Ratios (%) 

63.13 76.47 80.00 63.47 68.51 53.64 58.33 50.75 55.54 54.67 

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

Loss allowance to: 

87.13 82.95 81.47 91.91 90.18 92.17 90.73 88.93 92.11 84.36 

Loans and leases ................................................ 1.34 4.27 1.74 1.43 1.30 0.53 1.66 1.66 1.34 1.16 

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

Noncurrent assets plus 

167.78 215.84 135.34 156.74 206.31 97.06 259.42 168.43 155.30 156.27 

other real estate owned to assets ....................... 0.53 1.52 0.57 0.68 0.51 0.43 0.53 0.31 0.59 0.45 

Equity capital ratio .................................................. 10.28 20.52 8.05 10.79 10.09 10.55 11.36 16.94 10.79 10.25 

Core capital (leverage) ratio ................................... 8.12 16.64 6.05 10.37 8.29 9.10 8.82 15.17 10.38 7.20 

Tier 1 risk-based capital ratio ................................. 10.76 14.59 8.38 14.71 10.14 15.36 13.07 34.70 17.32 9.45 

Total risk-based capital ratio .................................. 13.19 17.34 12.03 15.82 12.18 16.86 14.62 35.95 18.55 12.12 

Net loans and leases to deposits ........................... 91.69 239.79 69.91 76.64 93.90 120.82 135.96 33.54 67.56 80.51 

Net loans to total assets ......................................... 59.75 73.62 41.73 62.61 68.13 70.19 78.23 25.32 55.20 54.09 

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

Structural Changes 

56.59 27.71 29.71 81.70 70.27 57.36 55.60 73.33 81.68 59.47 

New Charters ...................................................... 128 0 0 5 35 4 1 77 5 1 

Institutions absorbed by mergers ........................ 322 1 2 24 210 26 13 6 20 20 

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

PRIOR FULL YEARS 

(The way it was...) 

4 0 0 0 3 0 0 0 1 0 

Number of institutions ...................................2003 9,181 36 6 1,766 4,253 1,033 157 529 1,310 91 

............................................... 2001 9,614 56 5 1,875 3,967 1,242 228 477 1,663 101 

.............................................. 1999 10,222 64 8 2,113 3,784 1,356 304 562 1,942 89 

Total assets (in billions) ................................2003 $9,075.3 $348.4 $1,448.0 $129.1 $2,923.7 $1,657.6 $146.6 $61.1 $171.6 $2,189.3 

............................................... 2001 7,869.2 334.7 1,176.3 120.1 3,539.2 1,178.8 140.8 49.7 202.9 1,126.7 

.............................................. 1999 6,883.7 254.2 1,179.2 121.2 3,392.4 1,045.4 100.6 56.2 225.4 509.1 

Return on assets (%) ....................................2003 1.38 4.08 1.10 1.20 1.28 1.38 1.32 1.85 1.06 1.33 

............................................... 2001 1.14 2.92 0.84 1.12 1.11 1.05 1.29 1.84 1.04 1.09 

.............................................. 1999 1.26 3.52 0.93 1.18 1.27 1.03 1.36 1.67 1.27 1.26 

Net charge-offs to loans & leases (%) ..........2003 0.78 5.22 1.40 0.27 0.46 0.18 2.10 1.22 0.39 0.62 

............................................... 2001 0.83 4.52 0.88 0.36 0.68 0.19 1.39 0.50 0.33 0.75 

.............................................. 1999 

Noncurrent assets plus 

0.53 3.84 0.62 0.28 0.40 0.12 0.62 1.32 0.26 0.46 

OREO to assets (%) .................................2003 0.75 1.63 0.93 0.81 0.68 0.73 0.99 0.33 0.71 0.59 

............................................... 2001 0.87 1.54 1.00 0.81 0.92 0.65 1.30 0.31 0.66 0.64 

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

Equity capital ratio (%) .................................2003 9.15 16.04 7.39 10.64 9.24 9.10 7.30 16.74 10.45 8.87 

............................................... 2001 8.98 13.13 7.51 10.47 9.46 8.25 7.60 17.56 10.37 7.95 

.............................................. 1999 8.35 13.04 6.48 10.13 8.50 7.90 8.80 14.87 9.88 8.29 

* See Table IV-A (page 8) for explanations. 

FOURTH QUARTER 2004 6 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE III-A. Full Year 2004, All FDIC-Insured Institutions 

FULL YEAR 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,975 4,093 4,285 480 117 1,129 1,219 1,951 2,094 1,834 748 

Commercial banks ............................................... 7,630 3,655 3,530 360 85 595 1,073 1,603 1,988 1,704 667 

Savings institutions .............................................. 1,345 438 755 120 32 534 146 348 106 130 81 

Total assets (in billions) .......................................... $10,104.6 $211.7 $1,199.2 $1,316.4 $7,377.4 $2,854.8 $2,177.1 $2,387.6 $768.1 $603.1 $1,313.9 

Commercial banks ............................................... 8,412.8 189.0 953.4 973.0 6,297.3 2,268.7 2,029.6 2,233.5 723.6 509.9 647.5 

Savings institutions .............................................. 1,691.8 22.6 245.7 343.4 1,080.1 586.1 147.5 154.1 44.6 93.2 666.4 

Total deposits (in billions) ....................................... 6,584.2 175.6 955.9 890.0 4,562.7 1,839.3 1,495.1 1,493.2 541.2 447.4 768.0 

Commercial banks ............................................... 5,592.8 158.2 770.9 666.5 3,997.2 1,469.1 1,397.2 1,388.2 513.5 395.0 429.8 

Savings institutions .............................................. 991.4 17.4 185.0 223.4 565.5 370.2 97.9 105.0 27.7 52.4 338.3 

Net income (in millions) .......................................... 122,970 2,070 13,608 17,930 89,362 35,758 27,979 20,769 11,618 7,259 19,587 

Commercial banks ............................................... 104,724 1,802 11,637 13,421 77,864 29,724 26,488 18,992 11,402 5,594 12,523 

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

Performance Ratios (%) 

18,246 268 1,970 4,509 11,498 6,034 1,491 1,777 216 1,665 7,064 

Yield on earning assets .......................................... 5.02 5.65 5.63 5.35 4.83 5.16 5.08 4.18 5.82 5.11 5.62 

Cost of funding earning assets ............................... 1.49 1.51 1.60 1.53 1.46 1.62 1.55 1.42 1.27 1.33 1.42 

Net interest margin .............................................. 3.53 4.14 4.03 3.82 3.37 3.55 3.53 2.76 4.54 3.78 4.21 

Noninterest income to assets ................................. 2.13 1.28 1.29 1.92 2.32 2.67 1.92 1.77 2.83 1.44 1.88 

Noninterest expense to assets ............................... 3.10 3.59 3.19 3.16 3.05 3.38 2.96 2.76 4.07 3.07 2.75 

Loan and lease loss provision to assets ................. 0.30 0.22 0.23 0.32 0.32 0.41 0.16 0.18 0.47 0.18 0.50 

Net operating income to assets .............................. 1.23 0.98 1.16 1.30 1.23 1.32 1.28 0.82 1.54 1.18 1.56 

Pretax return on assets .......................................... 1.90 1.30 1.62 2.14 1.92 2.01 1.99 1.29 2.30 1.68 2.52 

Return on assets .................................................... 1.29 1.01 1.19 1.44 1.28 1.37 1.38 0.88 1.55 1.26 1.61 

Return on equity ..................................................... 13.28 8.45 11.75 13.41 13.71 13.04 16.03 10.46 14.95 12.66 13.65 

Net charge-offs to loans and leases ....................... 0.56 0.27 0.27 0.40 0.65 0.88 0.31 0.41 0.75 0.27 0.60 

Loan and lease loss provision to net charge-offs ... 90.57 131.90 127.77 124.29 83.13 86.28 86.17 79.85 87.40 109.99 113.10 

Efficiency ratio ........................................................ 58.03 70.41 63.40 57.17 56.99 57.09 58.46 65.20 58.15 62.80 47.39 

% of unprofitable institutions .................................. 5.79 10.04 2.19 2.92 0.85 5.85 9.19 5.13 3.20 6.05 8.56 

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

Condition Ratios (%) 

63.13 58.15 67.12 68.75 68.38 61.03 73.01 53.87 62.46 64.56 72.73 

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

Loss Allowance to: 

87.13 91.95 92.18 91.41 85.41 85.44 87.33 85.69 88.22 89.49 91.41 

Loans and leases ................................................ 1.34 1.37 1.28 1.33 1.35 1.64 1.13 1.35 1.45 1.22 1.12 

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

Noncurrent assets plus 

167.78 142.68 186.98 191.93 161.74 161.83 219.87 154.70 141.81 158.44 180.73 

other real estate owned to assets ....................... 0.53 0.74 0.56 0.52 0.53 0.58 0.35 0.55 0.81 0.61 0.51 

Equity capital ratio .................................................. 10.28 11.82 10.17 10.86 10.16 11.20 8.76 9.36 10.62 10.78 12.06 

Core capital (leverage) ratio ................................... 8.12 11.58 9.65 9.35 7.54 8.20 7.21 7.31 8.65 8.56 10.38 

Tier 1 risk-based capital ratio ................................. 10.76 17.58 13.58 12.93 9.78 11.30 9.32 9.32 10.69 12.12 14.40 

Total risk-based capital ratio .................................. 13.19 18.69 14.76 14.36 12.61 14.08 11.53 12.24 12.60 13.51 16.30 

Net loans and leases to deposits ........................... 91.69 73.65 82.96 95.30 93.51 83.97 85.19 88.26 102.20 83.06 127.11 

Net loans to total assets ......................................... 59.75 61.10 66.13 64.43 57.83 54.10 58.50 55.20 72.00 61.62 74.30 

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

Structural Changes 

56.59 82.95 79.57 66.76 50.28 47.65 62.57 53.10 68.24 73.79 57.75 

New Charters ...................................................... 128 122 4 1 1 16 46 9 10 21 26 

Institutions absorbed by mergers ........................ 322 114 155 46 7 63 43 65 61 47 43 

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

PRIOR FULL YEARS 

(The way it was...) 

4 4 0 0 0 2 1 0 0 0 1 

Number of institutions ...................................2003 9,181 4,390 4,210 471 110 1,173 1,227 2,011 2,133 1,866 771 

............................................... 2001 9,614 5,063 4,006 444 101 1,263 1,273 2,108 2,216 1,955 799 

.............................................. 1999 10,222 5,821 3,860 449 92 1,315 1,342 2,285 2,331 2,104 845 

Total assets (in billions) ................................2003 $9,075.3 $225.7 $1,160.4 $1,312.6 $6,376.5 $3,084.8 $1,882.6 $1,693.8 $456.3 $563.3 $1,394.3 

............................................... 2001 7,869.2 251.2 1,070.7 1,272.5 5,274.9 2,703.5 1,586.7 1,493.0 406.4 543.3 1,136.4 

.............................................. 1999 6,883.7 276.2 999.6 1,277.4 4,330.4 2,393.6 1,480.7 1,140.2 431.0 560.3 877.8 

Return on assets (%) ....................................2003 1.38 0.95 1.18 1.41 1.42 1.28 1.38 1.31 1.63 1.37 1.62 

............................................... 2001 1.14 0.85 1.08 1.26 1.13 1.01 1.09 1.07 1.42 1.25 1.46 

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

Net charge-offs to loans & leases (%) ..........2003 0.78 0.31 0.36 0.54 0.94 1.16 0.54 0.72 1.09 0.40 0.58 

............................................... 2001 0.83 0.33 0.35 0.83 0.96 1.02 0.75 0.79 0.80 0.43 0.80 

.............................................. 1999 

Noncurrent assets plus 

0.53 0.34 0.30 0.56 0.60 0.67 0.45 0.34 0.70 0.40 0.63 

OREO to assets (%) ................................2003 0.75 0.83 0.69 0.62 0.78 0.78 0.56 0.86 0.84 0.76 0.76 

............................................... 2001 0.87 0.81 0.70 0.72 0.95 0.89 0.86 0.99 0.77 0.79 0.76 

.............................................. 1999 0.63 0.66 0.57 0.62 0.64 0.70 0.58 0.56 0.59 0.63 0.60 

Equity capital ratio (%) .................................2003 9.15 11.49 10.05 10.35 8.66 9.05 8.78 8.49 10.58 9.60 10.05 

............................................... 2001 8.98 11.08 9.85 9.49 8.59 8.77 9.62 8.47 8.93 9.38 9.12 

.............................................. 1999 8.35 10.92 9.51 8.93 7.74 8.01 8.62 8.10 8.92 8.47 8.79 

* See Table IV-A (page 9) for explanations. 

ALL FDIC-INSURED INSTITUTIONS 7 FOURTH QUARTER 2004 
FDIC Quarterly Banking Profile 

TABLE IV-A. Fourth Quarter 2004, All FDIC-Insured Institutions 

FOURTH QUARTER 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,975 34 5 1,730 4,424 990 132 465 1,120 75 

Commercial banks ............................................... 7,630 30 5 1,725 4,019 250 101 414 1,026 60 

Savings institutions .............................................. 1,345 4 0 5 405 740 31 51 94 15 

Total assets (in billions) .......................................... $10,104.6 $382.5 $1,881.3 $138.3 $3,301.3 $1,503.6 $104.1 $51.6 $143.6 $2,598.4 

Commercial banks ............................................... 8,412.8 373.4 1,881.3 137.7 2,988.9 311.1 53.9 41.0 125.8 2,499.7 

Savings institutions .............................................. 1,691.8 9.1 0.0 0.6 312.3 1,192.5 50.2 10.5 17.8 98.7 

Total deposits (in billions) ....................................... 6,584.2 117.4 1,123.1 113.0 2,395.2 873.6 59.9 38.9 117.3 1,745.8 

Commercial banks ............................................... 5,592.8 115.7 1,123.1 112.6 2,190.8 198.0 28.8 31.1 103.2 1,689.6 

Savings institutions .............................................. 991.4 1.7 0.0 0.4 204.4 675.6 31.1 7.8 14.1 56.2 

Net income (in millions) .......................................... 31,771 3,264 3,626 372 10,274 4,526 418 229 369 8,693 

Commercial banks ............................................... 27,030 3,097 3,626 371 9,427 1,329 245 152 335 8,449 

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

Performance Ratios (annualized, %) 

4,740 167 0 1 847 3,197 173 77 34 245 

Yield on earning assets .......................................... 5.31 11.93 4.38 5.81 5.53 4.96 7.26 4.66 5.48 4.85 

Cost of funding earning assets ............................... 1.68 2.45 1.77 1.67 1.56 1.91 2.51 1.38 1.57 1.48 

Net interest margin .............................................. 3.63 9.47 2.60 4.14 3.97 3.05 4.74 3.28 3.90 3.37 

Noninterest income to assets ................................. 2.22 11.86 2.59 0.71 1.49 1.30 2.09 7.11 1.23 2.11 

Noninterest expense to assets ............................... 3.26 9.99 3.51 3.01 3.02 2.27 3.17 7.26 3.32 2.94 

Loan and lease loss provision to assets ................. 0.31 4.69 0.22 0.17 0.20 0.09 1.00 0.12 0.20 0.03 

Net operating income to assets .............................. 1.24 3.35 0.75 1.10 1.27 1.14 1.47 1.75 1.02 1.33 

Pretax return on assets .......................................... 1.88 5.63 1.04 1.33 1.85 1.89 2.32 2.66 1.32 2.01 

Return on assets .................................................... 1.28 3.63 0.77 1.09 1.26 1.23 1.51 1.77 1.03 1.36 

Return on equity ..................................................... 12.57 18.89 9.68 10.05 12.71 11.78 14.31 10.42 9.52 13.18 

Net charge-offs to loans and leases ....................... 0.61 4.67 1.10 0.32 0.35 0.15 1.44 0.54 0.40 0.24 

Loan and lease loss provision to net charge-offs ... 85.29 130.92 45.47 82.76 82.54 91.75 85.96 82.34 88.27 19.81 

Efficiency ratio ........................................................ 58.75 47.19 72.36 65.82 57.91 54.78 48.72 71.44 68.47 57.87 

% of unprofitable institutions .................................. 9.18 11.76 0.00 10.00 8.32 8.28 6.06 19.57 8.39 5.33 

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

Structural Changes 

62.14 61.76 40.00 56.07 69.17 58.89 59.85 47.74 53.13 60.00 

New Charters ...................................................... 35 0 0 1 11 1 0 21 1 0 

Institutions absorbed by mergers ........................ 80 1 2 7 55 7 0 1 3 4 

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

PRIOR FOURTH QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 

Return on assets (%) ....................................2003 1.38 4.64 1.22 1.05 1.22 1.26 1.07 3.41 0.93 1.31 

............................................... 2001 1.12 2.84 0.63 0.95 1.02 0.97 1.80 1.66 1.03 1.54 

.............................................. 1999 1.21 2.98 1.02 1.02 1.22 0.99 1.31 2.44 1.06 1.14 

Net charge-offs to loans & leases (%) ..........2003 0.80 5.31 1.36 0.43 0.49 0.13 2.82 0.56 0.46 0.56 

............................................... 2001 1.14 5.53 1.60 0.54 0.94 0.23 1.90 0.70 0.47 0.99 

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

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

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

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

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

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

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

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

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

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

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

activity with no identified asset concentrations. 

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

activity with no identified asset concentrations. 

FOURTH QUARTER 2004 8 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE IV-A. Fourth Quarter 2004, All FDIC-Insured Institutions 

FOURTH QUARTER 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than $100 

Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,975 4,093 4,285 480 117 1,129 1,219 1,951 2,094 1,834 748 

Commercial banks ............................................... 7,630 3,655 3,530 360 85 595 1,073 1,603 1,988 1,704 667 

Savings institutions .............................................. 1,345 438 755 120 32 534 146 348 106 130 81 

Total assets (in billions) .......................................... $10,104.6 $211.7 $1,199.2 $1,316.4 $7,377.4 $2,854.8 $2,177.1 $2,387.6 $768.1 $603.1 $1,313.9 

Commercial banks ............................................... 8,412.8 189.0 953.4 973.0 6,297.3 2,268.7 2,029.6 2,233.5 723.6 509.9 647.5 

Savings institutions .............................................. 1,691.8 22.6 245.7 343.4 1,080.1 586.1 147.5 154.1 44.6 93.2 666.4 

Total deposits (in billions) ....................................... 6,584.2 175.6 955.9 890.0 4,562.7 1,839.3 1,495.1 1,493.2 541.2 447.4 768.0 

Commercial banks ............................................... 5,592.8 158.2 770.9 666.5 3,997.2 1,469.1 1,397.2 1,388.2 513.5 395.0 429.8 

Savings institutions .............................................. 991.4 17.4 185.0 223.4 565.5 370.2 97.9 105.0 27.7 52.4 338.3 

Net income (in millions) .......................................... 31,771 481 3,432 4,382 23,475 9,528 7,011 5,115 3,210 1,761 5,147 

Commercial banks ............................................... 27,030 402 2,939 3,377 20,313 7,942 6,673 4,722 3,112 1,447 3,135 

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

Performance Ratios (annualized, %) 

4,740 79 493 1,005 3,163 1,586 338 392 98 315 2,012 

Yield on earning assets .......................................... 5.31 5.83 5.79 5.54 5.16 5.56 5.14 4.63 5.91 5.58 5.79 

Cost of funding earning assets ............................... 1.68 1.57 1.68 1.68 1.68 1.83 1.65 1.66 1.44 1.55 1.61 

Net interest margin .............................................. 3.63 4.26 4.11 3.86 3.49 3.73 3.49 2.97 4.47 4.02 4.18 

Noninterest income to assets ................................. 2.22 1.37 1.28 1.94 2.45 2.79 1.96 1.86 3.13 1.49 1.92 

Noninterest expense to assets ............................... 3.26 3.86 3.26 3.22 3.25 3.57 2.98 3.10 4.25 3.31 2.75 

Loan and lease loss provision to assets ................. 0.31 0.25 0.26 0.36 0.32 0.46 0.17 0.17 0.33 0.20 0.54 

Net operating income to assets .............................. 1.24 0.90 1.14 1.24 1.27 1.34 1.28 0.80 1.68 1.16 1.57 

Pretax return on assets .......................................... 1.88 1.20 1.58 2.06 1.91 2.01 1.90 1.23 2.50 1.61 2.49 

Return on assets .................................................... 1.28 0.92 1.16 1.35 1.29 1.37 1.31 0.85 1.68 1.18 1.59 

Return on equity ..................................................... 12.57 7.69 11.37 12.38 12.98 12.49 15.22 9.21 15.92 11.29 13.20 

Net charge-offs to loans and leases ....................... 0.61 0.37 0.35 0.46 0.69 0.89 0.32 0.59 0.72 0.34 0.59 

Loan and lease loss provision to net charge-offs ... 85.29 106.98 111.40 117.54 78.17 93.87 89.08 51.35 63.22 94.26 122.59 

Efficiency ratio ........................................................ 58.75 72.74 63.83 57.77 57.76 57.56 58.11 67.95 58.79 64.09 46.95 

% of unprofitable institutions .................................. 9.18 15.29 4.11 4.38 0.85 7.53 10.75 7.69 8.83 11.07 9.36 

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

Structural Changes 

62.14 56.17 66.44 73.96 64.96 62.98 68.33 61.40 58.17 58.29 73.26 

New Charters ...................................................... 35 34 1 0 0 4 9 3 4 9 6 

Institutions absorbed by mergers ........................ 80 39 31 6 4 12 12 20 13 13 10 

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

PRIOR FOURTH QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%) ....................................2003 1.38 0.85 1.15 1.42 1.43 1.34 1.34 1.30 1.63 1.26 1.58 

............................................... 2001 1.12 0.63 1.03 1.37 1.10 0.69 1.38 1.20 1.58 1.26 1.47 

.............................................. 1999 1.21 0.79 1.17 1.33 1.21 1.18 1.26 1.18 1.38 1.11 1.24 

Net charge-offs to loans & leases (%) ..........2003 0.80 0.43 0.48 0.60 0.92 1.06 0.49 0.90 1.42 0.47 0.54 

............................................... 2001 1.14 0.52 0.49 1.17 1.30 1.63 0.93 0.94 1.25 0.58 0.93 

.............................................. 1999 0.61 0.40 0.39 0.65 0.67 0.75 0.58 0.38 0.74 0.53 0.65 

*Regions: 

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

Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

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

ALL FDIC-INSURED INSTITUTIONS 9 FOURTH QUARTER 2004 
FDIC Quarterly Banking Profile 

TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

December 31, 2004 All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ....................................... 0.70 0.70 0.83 0.99 0.63 0.72 1.15 1.26 1.35 0.71 

Construction and development ...................................... 0.60 0.00 0.88 0.89 0.58 0.85 1.11 0.62 1.12 0.47 

Commercial real estate ................................................. 0.49 0.03 1.30 0.89 0.47 0.41 0.51 0.92 0.99 0.36 

Multifamily residential real estate .................................. 0.24 0.00 1.12 0.60 0.28 0.12 0.00 0.58 0.84 0.15 

Home equity loans ......................................................... 0.36 0.62 0.48 0.54 0.32 0.30 0.20 0.32 0.50 0.39 

Other 1-4 family residential ........................................... 0.93 1.44 0.79 1.61 1.01 0.83 1.63 1.64 1.65 0.94 

Commercial and industrial loans ...................................... 0.68 2.21 0.68 1.43 0.75 0.58 1.07 1.16 1.37 0.45 

Loans to individuals .......................................................... 1.80 2.49 1.79 2.22 1.40 1.13 1.43 2.42 2.26 1.42 

Credit card loans ........................................................... 2.28 2.56 1.86 2.27 1.95 1.28 1.37 3.01 2.45 1.95 

Other loans to individuals .............................................. 1.45 1.50 1.75 2.22 1.33 1.11 1.45 2.36 2.25 1.30 

All other loans and leases (including farm) ...................... 0.37 0.01 0.27 0.60 0.58 0.55 0.23 0.36 0.54 0.34 

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

Percent of Loans Noncurrent** 

0.84 2.32 0.89 1.05 0.71 0.74 1.30 1.36 1.42 0.70 

All real estate loans .......................................................... 0.61 0.09 0.94 0.84 0.56 0.54 0.34 0.93 0.84 0.70 

Construction and development ...................................... 0.48 0.19 1.14 0.61 0.43 0.80 0.46 2.03 0.78 0.40 

Commercial real estate ................................................. 0.69 0.44 1.61 1.15 0.65 0.74 0.55 1.05 1.21 0.61 

Multifamily residential real estate .................................. 0.26 0.00 1.67 0.53 0.26 0.10 0.23 0.12 0.91 0.40 

Home equity loans ......................................................... 0.18 0.07 0.35 0.23 0.18 0.15 0.02 0.13 0.18 0.17 

Other 1-4 family residential ........................................... 0.71 0.26 0.75 0.81 0.71 0.59 0.41 0.77 0.75 0.91 

Commercial and industrial loans ...................................... 1.16 1.16 2.09 1.57 0.90 0.84 0.76 1.41 1.33 1.02 

Loans to individuals .......................................................... 1.40 2.18 2.07 0.79 0.55 0.37 0.76 1.02 0.78 0.77 

Credit card loans ........................................................... 1.99 2.24 1.66 1.82 1.32 1.00 1.24 2.73 2.16 1.80 

Other loans to individuals .............................................. 0.95 1.32 2.38 0.75 0.46 0.28 0.60 0.87 0.69 0.55 

All other loans and leases (including farm) ...................... 0.40 0.00 0.22 0.74 0.53 0.58 0.50 0.61 0.54 0.49 

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

Percent of Loans Charged-off (net, YTD) 

0.80 1.98 1.28 0.91 0.63 0.54 0.64 0.98 0.86 0.74 

All real estate loans .......................................................... 0.07 0.09 0.09 0.07 0.09 0.04 0.09 0.07 0.09 0.06 

Construction and development ...................................... 0.05 0.00 0.03 0.06 0.06 0.05 0.24 0.11 0.08 0.03 

Commercial real estate ................................................. 0.07 0.00 -0.05 0.09 0.08 0.04 0.13 0.10 0.13 0.06 

Multifamily residential real estate .................................. 0.03 0.00 0.21 0.13 0.04 0.00 0.62 0.03 0.02 0.01 

Home equity loans ......................................................... 0.09 0.10 0.10 0.05 0.12 0.06 0.03 0.09 0.06 0.09 

Other 1-4 family residential ........................................... 0.06 0.03 0.09 0.10 0.12 0.04 0.09 0.04 0.08 0.05 

Commercial and industrial loans ...................................... 0.54 3.44 0.42 0.55 0.58 0.51 2.72 0.65 0.66 0.40 

Loans to individuals .......................................................... 2.76 5.12 3.15 0.78 1.24 1.43 2.33 2.73 1.14 1.13 

Credit card loans ........................................................... 5.01 5.23 4.69 4.96 4.30 3.47 5.57 14.26 6.29 4.25 

Other loans to individuals .............................................. 1.28 3.66 2.20 0.60 0.92 1.12 1.26 1.82 0.79 0.67 

All other loans and leases (including farm) ...................... 0.16 0.00 0.05 0.00 0.40 0.40 0.17 0.26 0.28 0.14 

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

Loans Outstanding (in billions) 

0.60 4.70 0.90 0.20 0.30 0.10 1.60 0.60 0.30 0.20 

All real estate loans .......................................................... $3,683.0 $19.8 $201.4 $47.7 $1,517.0 $971.5 $22.9 $9.1 $55.7 $838.0 

Construction and development ...................................... 336.8 0.0 6.9 3.0 248.5 24.7 0.7 0.7 3.2 49.0 

Commercial real estate ................................................. 752.0 0.1 19.0 12.2 524.0 50.1 2.1 2.6 13.5 128.4 

Multifamily residential real estate .................................. 169.0 0.0 2.3 0.9 100.8 45.4 0.3 0.3 1.0 18.0 

Home equity loans ......................................................... 490.7 17.6 35.7 0.9 166.6 98.1 5.4 0.3 2.6 163.4 

Other 1-4 family residential ........................................... 1,836.9 2.1 96.7 14.3 453.5 752.3 14.2 4.9 31.8 467.0 

Commercial and industrial loans ...................................... 968.3 7.0 173.8 12.3 463.0 37.6 7.4 1.6 8.4 257.1 

Loans to individuals .......................................................... 930.2 263.1 205.9 6.5 182.8 43.7 51.3 1.9 11.0 164.1 

Credit card loans ........................................................... 399.2 244.3 87.1 0.3 18.9 5.6 12.6 0.2 0.6 29.6 

Other loans to individuals .............................................. 531.0 18.8 118.8 6.3 163.9 38.0 38.6 1.7 10.4 134.4 

All other loans and leases (including farm) ...................... 540.9 4.2 219.5 21.3 117.0 8.4 1.3 0.7 5.3 163.1 

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

Memo: Other Real Estate Owned (in millions) 

6,122.5 294.2 800.6 87.9 2,279.8 1,061.1 82.9 13.3 80.4 1,422.3 

All other real estate owned ............................................... 4,281.4 0.9 214.0 135.1 2,235.6 749.6 18.5 27.3 148.6 751.8 

Construction and development ...................................... 509.3 0.0 3.7 10.4 339.5 51.9 0.7 2.7 15.2 85.1 

Commercial real estate ................................................. 1,312.6 0.7 9.0 51.3 982.8 67.1 4.1 13.4 58.2 126.0 

Multifamily residential real estate .................................. 102.1 0.0 0.0 1.9 66.5 7.7 0.2 0.6 2.9 22.3 

1-4 family residential ..................................................... 2,189.2 0.2 134.2 42.6 814.9 623.2 13.6 9.9 66.3 484.3 

Farmland ....................................................................... 79.2 0.0 0.0 29.0 34.7 0.2 0.2 0.8 6.0 8.3 

* See Table IV-A (page 8) for explanations.
 

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

FOURTH QUARTER 2004 10 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

December 31, 2004 

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ............................. 0.70 1.22 0.78 0.54 0.71 0.67 0.61 0.87 0.79 0.86 0.57 

Construction and development ............................ 0.60 0.78 0.61 0.52 0.63 0.57 0.38 0.82 0.84 0.63 0.59 

Commercial real estate ....................................... 0.49 0.85 0.57 0.40 0.46 0.55 0.36 0.64 0.48 0.65 0.28 

Multifamily residential real estate ........................ 0.24 0.74 0.37 0.25 0.20 0.14 0.27 0.49 0.40 0.69 0.11 

Home equity loans ............................................... 0.36 0.56 0.40 0.36 0.36 0.37 0.33 0.41 0.44 0.38 0.22 

Other 1-4 family residential ................................. 0.93 1.77 1.19 0.72 0.90 0.78 0.90 1.22 1.17 1.24 0.75 

Commercial and industrial loans ............................ 0.68 1.40 0.99 0.95 0.57 0.61 0.49 0.70 0.68 0.75 1.15 

Loans to individuals ................................................ 1.80 2.51 2.14 2.20 1.72 2.01 1.73 1.53 1.96 1.50 1.67 

Credit card loans ................................................. 2.28 1.76 5.44 3.57 2.10 2.32 3.05 2.32 2.40 0.69 1.99 

Other loans to individuals .................................... 1.45 2.53 1.74 1.37 1.39 1.67 1.41 1.26 1.38 1.72 1.21 

All other loans and leases (including farm) ............ 0.37 0.60 0.57 0.44 0.35 0.42 0.18 0.43 0.35 0.65 0.40 

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

Percent of Loans Noncurrent** 

0.84 1.30 0.90 0.77 0.83 0.93 0.68 0.86 0.93 0.90 0.78 

All real estate loans ................................................ 0.61 0.86 0.61 0.56 0.62 0.55 0.39 0.86 1.01 0.74 0.45 

Construction and development ............................ 0.48 0.64 0.50 0.47 0.46 0.48 0.26 0.73 0.59 0.51 0.46 

Commercial real estate ....................................... 0.69 0.93 0.68 0.72 0.67 0.64 0.47 1.01 0.70 0.82 0.55 

Multifamily residential real estate ........................ 0.26 0.44 0.43 0.26 0.21 0.14 0.33 0.60 0.61 0.74 0.05 

Home equity loans ............................................... 0.18 0.26 0.19 0.20 0.17 0.14 0.14 0.26 0.19 0.16 0.11 

Other 1-4 family residential ................................. 0.71 0.96 0.66 0.58 0.74 0.52 0.46 1.06 1.71 0.84 0.52 

Commercial and industrial loans ............................ 1.16 1.48 1.03 1.03 1.19 1.40 0.83 1.38 0.83 1.00 0.99 

Loans to individuals ................................................ 1.40 0.95 0.86 1.16 1.47 2.08 0.90 0.70 1.47 0.57 1.22 

Credit card loans ................................................. 1.99 1.32 3.28 2.40 1.93 2.18 2.00 1.60 2.20 0.57 1.77 

Other loans to individuals .................................... 0.95 0.95 0.57 0.40 1.07 1.96 0.63 0.39 0.49 0.56 0.43 

All other loans and leases (including farm) ............ 0.40 0.84 0.66 0.57 0.35 0.38 0.36 0.32 0.54 0.85 0.62 

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

Percent of Loans Charged-off (net, YTD) 

0.80 0.96 0.68 0.70 0.84 1.01 0.51 0.87 1.02 0.77 0.62 

All real estate loans ................................................ 0.07 0.09 0.07 0.07 0.07 0.04 0.06 0.14 0.07 0.09 0.03 

Construction and development ............................ 0.05 0.10 0.06 0.05 0.04 0.02 0.03 0.10 0.07 0.06 0.02 

Commercial real estate ....................................... 0.07 0.10 0.07 0.09 0.06 0.03 0.06 0.14 0.07 0.09 0.03 

Multifamily residential real estate ........................ 0.03 0.04 0.09 0.02 0.02 0.01 0.04 0.09 0.05 0.11 0.00 

Home equity loans ............................................... 0.09 0.10 0.06 0.11 0.09 0.04 0.10 0.14 0.12 0.13 0.02 

Other 1-4 family residential ................................. 0.06 0.09 0.06 0.06 0.07 0.03 0.05 0.15 0.05 0.10 0.04 

Commercial and industrial loans ............................ 0.54 0.62 0.59 0.65 0.51 0.45 0.48 0.47 0.60 0.44 1.10 

Loans to individuals ................................................ 2.76 1.05 1.75 2.28 2.93 3.55 1.64 1.78 3.60 1.04 3.27 

Credit card loans ................................................. 5.01 2.60 9.28 4.81 4.95 5.15 5.41 4.44 5.74 2.01 4.61 

Other loans to individuals .................................... 1.28 1.02 0.86 0.83 1.40 1.98 0.79 1.15 0.71 0.82 1.30 

All other loans and leases (including farm) ............ 0.16 0.19 0.26 0.29 0.14 0.13 0.14 0.18 0.12 0.39 0.18 

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

Loans Outstanding (in billions) 

0.60 0.30 0.30 0.40 0.70 0.90 0.30 0.40 0.70 0.30 0.60 

All real estate loans ................................................ $3,683.0 $86.2 $607.7 $608.4 $2,380.7 $792.1 $831.1 $738.2 $342.1 $254.5 $725.0 

Construction and development ............................ 336.8 9.1 89.8 82.5 155.3 38.6 105.5 73.6 29.3 45.1 44.8 

Commercial real estate ....................................... 752.0 24.1 212.2 184.3 331.3 150.1 177.7 164.6 74.1 78.1 107.3 

Multifamily residential real estate ........................ 169.0 2.0 26.1 40.0 100.9 44.8 19.3 30.3 8.6 6.7 59.2 

Home equity loans ............................................... 490.7 3.2 36.5 48.4 402.6 91.9 121.8 127.3 70.9 19.9 58.8 

Other 1-4 family residential ................................. 1,836.9 37.8 222.2 246.0 1,330.9 419.7 398.2 330.4 144.5 93.8 450.3 

Commercial and industrial loans ............................ 968.3 19.2 109.3 126.3 713.5 260.0 204.6 259.1 79.0 64.6 101.1 

Loans to individuals ................................................ 930.2 12.4 55.6 91.8 770.4 349.3 140.3 168.3 92.8 40.6 139.0 

Credit card loans ................................................. 399.2 0.2 6.0 34.7 358.4 185.4 27.4 42.8 53.0 8.6 82.0 

Other loans to individuals .................................... 531.0 12.1 49.6 57.1 412.1 163.9 112.8 125.5 39.8 32.0 57.0 

All other loans and leases (including farm) ............ 540.9 13.5 31.3 33.5 462.6 170.8 112.8 170.4 47.3 16.8 22.8 

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

Memo: Other Real Estate Owned (in millions) 

6,122.5 131.2 803.9 860.1 4,327.2 1,572.2 1,288.7 1,336.0 561.3 376.5 987.8 

All other real estate owned ..................................... 4,281.4 304.7 1,238.8 756.5 1,981.4 459.3 833.1 1,190.1 486.1 782.9 529.9 

Construction and development ............................ 509.3 38.5 200.9 151.2 118.6 23.5 111.5 94.4 52.0 182.5 45.3 

Commercial real estate ....................................... 1,312.6 113.1 566.2 311.6 321.7 135.3 270.7 294.9 160.5 298.9 152.3 

Multifamily residential real estate ........................ 102.1 10.3 44.2 32.4 15.2 6.0 18.3 35.0 8.1 28.2 6.4 

1-4 family residential ........................................... 2,189.2 121.3 387.2 256.5 1,424.1 198.3 425.7 758.1 240.7 251.7 314.8 

Farmland ............................................................. 79.2 21.7 41.0 6.9 9.5 3.4 8.3 8.1 26.1 22.5 10.8 

* See Table IV-A (page 9) for explanations.
 

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

ALL FDIC-INSURED INSTITUTIONS 11 FOURTH QUARTER 2004 
FDIC Quarterly Banking Profile 

Insurance Fund Indicators Fourth Quarter 2004 

• BIF Reserve Ratio Falls 2 Basis Points, Ends Year at 1.30 Percent 

• SAIF Reserve Ratio Rises 1 Basis Point to 1.34 Percent 

• Four Institutions Fail During Year 

Insured deposits rose by 1.9 percent during the fourth 

quarter, bringing the growth rate for the full year to 

5.0 percent. Full year growth for 2004 was more than 

double the 2.0 percent rise of the previous year. 

Insured deposits at the 8,975 banks and thrifts rose by 

$171 billion during 2004. 

Deposits insured by the Bank Insurance Fund (BIF) 

grew by 2.3 percent during the fourth quarter and by 

4.5 percent for the full year, to $2.7 trillion at yearend. Between September 30 and December 31, twothirds of all BIF-member institutions reported increases 

in insured deposits. On December 31, 2004, the balance of the BIF was $34.8 billion, $320 million higher 

than three months earlier. About 40 percent of the 

quarterly increase ($136 million) came from reducing 

reserves previously set aside for losses. During 2004, 

the BIF balance increased by $1.0 billion, the smallest 

full year increase in three years. Reducing reserves 

previously set aside for losses added $269 million to 

the fund, compared to the prior year’s reserve reduction, which contributed $931 million to the BIF. Rising interest rates during 2004 caused the BIF to record 

an unrealized loss on available-for-sale securities which 

reduced the fund by $112 million. Unrealized losses 

on available-for-sale securities reduced the BIF by $10 

million in 2003. The reserve ratio for the Bank Insurance Fund ended 2004 at 1.30 percent, two basis 

points lower than the previous quarter, and two basis 

points lower than the previous year-end. As of yearend 2004, the BIF reserve ratio would change roughly 

one basis point for every $267 million change in the 

BIF fund balance or every $20.7 billion movement in 

the amount of deposits insured by the BIF. 

SAIF insured deposits increased by 0.8 percent ($7.7 

billion) during the fourth quarter, ending 2004 at $951 

billion. This was the slowest quarterly growth since 

the third quarter of 2003 when SAIF-insured deposits 

decreased by 0.4 percent. 

On December 31, 2004, the Savings Association 

Insurance Fund (SAIF) balance was $12.7 billion, 

$197 million higher than three months earlier. This 

was the largest quarterly increase in the SAIF since 

the third quarter of 2002 when the fund increased by 

$263 million. Nearly half of the quarter’s growth ($95 

million) was attributable to reducing reserves previously set aside for losses. The quarterly increase to the 

SAIF more than offset the growth in SAIF insured 

deposits, causing the SAIF reserve ratio to rise one 

basis point during the fourth quarter to 1.34 percent. 

There were no failures of FDIC-insured institutions 

during the fourth quarter of 2004. For all of 2004, four 

FDIC-insured institutions failed. Three BIF-members 

failed with combined assets of $151 million and an 

estimated failure cost of $9.4 million, and one SAIFmember failed with assets of $15 million and an estimated failure cost of zero. 

Changes in Insurance Fund Balances 

(dollar figures in millions) Bank Insurance Fund 

4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 

2004 2004 2004 2004 2003 2003 2003 

Savings Association Insurance Fund 

4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 

2004 2004 2004 2004 2003 2003 2003 

Beginning Fund Balance $34,467 $34,110 $34,164 $33,782 $33,462 $32,800 $32,382 

Unrealized Gain (Loss) on 

Available-For-Sale Securities –32 77 –332 175 –106 –45 38 

Provision for Insurance Losses –136 –64 –32 –37 –246 –543 –133 

All Other Income, Net of Expenses 216 216 246 170 180 164 247 

Total Fund Balance Change 320 357 –54 382 320 662 418 

Ending Fund Balance $34,787 $34,467 $34,110 $34,164 $33,782 $33,462 $32,800 

$12,523 $12,411 $12,394 $12,240 $12,186 $12,083 $11,906 

–10 24 –109 59 -37 -16 13 

–95 24 –2 1 10 -26 -45 

112 112 124 96 101 93 119 

197 112 17 154 54 103 177 

$12,720 $12,523 $12,411 $12,394 $12,240 $12,186 $12,083 

FOURTH QUARTER 2004 12 ALL FDIC-INSURED INSTITUTIONS 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FDIC Quarterly Banking Profile 

TABLE I-B. Selected Insurance Fund Indicators* 

(dollar figures in millions) 

Bank Insurance Fund 

Preliminary 

4th Quarter 

2004 

3rd Quarter 

2004 

4th Quarter 

2003 

%Change 

03:12-04:12 

Reserve ratio (%)................................................................................... 1.30 1.32 1.32 -1.5 

Fund Balance ....................................................................................... $34,787 $34,467 $33,782 3.0 

Estimated insured deposits ..................................................................... 2,672,397 2,611,916 2,556,288 4.5 

SAIF-member Oakars.......................................................................... 103,333 105,554 100,795 2.5 

BIF-members .................................................................................... 2,569,063 2,506,362 2,455,493 4.6 

Assessment base ................................................................................. 4,530,207 4,387,985 4,128,777 9.7 

SAIF-member Oakars.......................................................................... 112,796 111,307 103,574 8.9 

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

Savings Association Insurance Fund 

4,417,411 4,276,678 4,025,203 9.7 

Reserve ratio (%) ................................................................................ 1.34 1.33 1.37 -2.1 

Fund Balance ...................................................................................... $12,720 $12,523 $12,240 3.9 

Estimated insured deposits ..................................................................... 951,316 943,666 896,123 6.2 

BIF-member Oakars ........................................................................... 443,763 441,935 405,737 9.4 

SAIF-member Sassers ........................................................................ 93,026 92,183 95,031 -2.1 

Other SAIF members .......................................................................... 414,527 409,548 395,355 4.8 

Assessment base .................................................................................. 1,156,473 1,128,078 1,044,046 10.8 

BIF-member Oakars ........................................................................... 459,855 447,269 409,424 12.3 

SAIF-member Sassers ........................................................................ 120,937 119,590 120,418 0.4 

Other SAIF members .......................................................................... 575,680 561,218 514,205 12.0 

Insurance Fund Reserve Ratios* Fund Balances and Insured Deposits* 

1.43 Percent of Insured Deposits ($Millions) 1.42 

1.40 BIF BIF BIF-Insured SAIF SAIF-Insured 

1.38 SAIF Balance Deposits Balance Deposits 

1.37 1.37 1.37 1.37 

1.35 1.36 1.36 12/99 29,414 2,151,454 10,281 717,591 

1.34 1.34 12/00 30,975 2,299,932 10,759 755,156 

1.32 1.32 1.32 1.32 

1.33 12/01 30,439 2,409,566 10,935 801,171 1.31 1.30 3/02 30,697 2,495,498 11,049 810,902 

1.28 1.28 6/02 31,187 2,490,954 11,323 818,806 

Target 

Ratio 1.26 

1.27 9/02 

12/02 

31,383 

32,050 

2,513,160 

2,524,474 

11,586 

11,747 

833,029 

859,205 1.25 3/03 32,382 2,531,307 11,906 867,908 

6/03 32,800 2,562,053 12,083 876,305 

9/03 33,462 2,541,540 12,186 872,777 

12/03 33,782 2,556,288 12,240 896,123 

3/04 34,164 2,586,469 12,394 914,475 

6/04 34,110 2,605,720 12,411 926,570 

9/04 34,467 2,611,916 12,523 943,666 

12/04 34,787 2,672,397 12,720 951,316 

12/99 12/00 12/01 12/02 3/03 6/03 9/03 12/03 3/04 6/04 9/04 12/04 

* Estimated insured deposits are based on preliminary data. A reserve ratio is the fund balance as a percentage of estimated insured deposits. 

As with other Call Report items, prior periods may reflect adjustments. As a result, prior period reserve ratios may differ from previously 

reported values. Only year-end fund balances are audited by GAO. Fund balances for the most recent period are unaudited. BIF-insured 

deposit totals include U.S. branches of foreign banks. 

TABLE II-B. Closed/Assisted Institutions 

(dollar figures in millions) 

2004 2003 2002 2001 2000 1999 1998 

BIF Members 

Number of institutions .................. 3 3 10 3 6 7 3 

Total assets .............................. $151 $1,097 $2,508 $54 $378 $1,490 $371 

SAIF Members 

Number of institutions .................. 1 0 1 1 1 1 0 

Total assets .............................. $15 $0 $50 $2,200 $30 $71 $0 

ALL FDIC-INSURED INSTITUTIONS 13 FOURTH QUARTER 2004 
FDIC Quarterly Banking Profile 

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

(dollar figures in millions) 2004 2003 2002 2001 2000 1999 1998 

BIF Members 

Number of institutions reporting ........................... 7,839 7,995 8,125 8,327 8,572 8,835 9,032 

BIF-member Oakars ....................................... 773 766 801 766 743 744 745 

Other BIF-members ....................................... 7,066 7,229 7,324 7,561 7,829 8,091 8,287 

Total assets .................................................... $8,743,794 $7,899,294 $7,336,225 $6,857,472 $6,510,744 $5,980,127 $5,702,872 

Total deposits ................................................. 5,773,607 5,210,272 4,854,891 4,567,604 4,337,661 3,987,336 3,843,779 

Net income ..................................................... 109,232 106,315 92,644 76,500 73,430 73,952 64,451 

Return on assets (%) ........................................ 1.31 1.40 1.32 1.14 1.18 1.29 1.18 

Return on equity (%) ......................................... 13.73 15.21 14.34 12.91 13.86 15.11 13.82 

Noncurrent assets plus OREO to assets (%) .......... 0.54 0.76 0.91 0.89 0.72 0.62 0.64 

Number of problem institutions.............................. 69 102 116 90 74 66 68 

Assets of problem institutions ............................. $27,161 $28,812 $32,176 $31,881 $10,787 $4,450 $5,326 

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

Assets of failed/assisted institutions ..................... $151 $1,097 $2,508 $54 $378 $1,490 $371 

SAIF Members 

Number of institutions reporting ........................... 1,136 1,186 1,229 1,287 1,332 1,387 1,432 

SAIF-member Oakars ..................................... 149 146 133 130 122 123 116 

Other SAIF-members ..................................... 987 1,040 1,096 1,157 1,210 1,264 1,316 

Total assets .................................................... $1,360,829 $1,177,483 $1,099,965 $1,011,736 $952,154 $903,532 $828,177 

Total deposits ................................................. 810,588 744,016 713,599 621,824 577,100 550,703 542,481 

Net income ..................................................... 13,744 14,319 12,462 10,623 8,071 8,450 7,568 

Return on assets (%) ........................................ 1.09 1.25 1.17 1.11 0.89 0.99 0.98 

Return on equity (%) ......................................... 10.14 13.86 12.79 13.46 11.12 11.97 11.29 

Noncurrent assets plus OREO to assets (%) .......... 0.50 0.69 0.79 0.75 0.65 0.64 0.80 

Number of problem institutions ............................ 11 14 20 24 20 13 16 

Assets of problem institutions ............................. $1,089 $1,105 $6,751 $7,923 $13,053 $5,524 $5,992 

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

Assets of failed/assisted institutions ..................... $15 $0 $50 $2,200 $30 $71 $0 

* Excludes insured branches of foreign banks (IBAs). 

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

(dollar figures in millions) 

December 31, 2004 

Commercial Banks and Savings Institutions 

Number of 

Institutions 

Total 

Assets 

Domestic 

Depostis* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks ..................... 7,630 8,412,844 4,726,933 2,412,426 454,133 2,866,558 

BIF-member ................................................ 7,517 8,219,137 4,610,412 2,381,303 397,449 2,778,752 

SAIF-member ............................................. 113 193,707 116,521 31,123 56,684 87,807 

FDIC-Supervised ....................................... 4,804 1,535,686 1,126,979 676,989 98,800 775,789 

OCC-Supervised .......................................... 1,907 5,601,668 2,848,766 1,374,719 267,778 1,642,497 

Federal Reserve-Supervised ........................ 919 1,275,490 751,188 360,717 87,555 448,272 

FDIC-Insured Savings Institutions ..................... 1,345 1,691,779 991,376 259,035 497,183 756,218 

OTS-Supervised Savings Institutions .................. 886 1,348,976 759,402 132,272 441,101 573,373 

BIF-member ................................................ 43 245,147 112,865 62,952 26,575 89,527 

SAIF-member ............................................. 843 1,103,829 646,537 69,320 414,527 483,847 

FDIC-Supervised State Savings Banks ............... 459 342,803 231,975 126,763 56,082 182,845 

BIF-member ................................................ 279 279,510 186,568 123,873 19,739 143,613 

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

Total Commercial Banks and 

180 63,293 45,407 2,890 36,342 39,232 

Savings Institutions .................................... 8,975 10,104,623 5,718,309 2,671,461 951,316 3,622,777 

BIF-member ................................................ 7,839 8,743,794 4,909,844 2,568,128 443,763 3,011,891 

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

Other FDIC-Insured Institutions 

1,136 1,360,829 808,465 103,333 507,553 610,886 

U.S. Branches of Foreign Banks ........................ 13 10,198 5,032 935 0 935 

Total FDIC-Insured Institutions ........................ 8,988 10,114,820 5,723,341 2,672,397 951,316 3,623,712 

* Excludes $866 billion in foreign office deposits, which are uninsured. 

FOURTH QUARTER 2004 14 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE V-B. Assessment Base Distribution and Rate Schedule 

BIF Assessment Base Distribution
 

Assessable Deposits in Billions as of December 31, 2004
 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2005
 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized

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

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

2. Adequately capitalized

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

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

3. Undercapitalized

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

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

7,326 

$4,450 

59 

$11 

1 

$0 

93.3% 

98.2% 

0.8% 

0.2% 

0.0% 

0.0% 

393 5.0% 

$49 1.1% 

2 0.0% 

$1 0.0% 

0 0.0% 

$0 0.0% 

61 

$18 

8 

$1 

2 

$0 

0.8%

0.4% 

0.1%

0.0% 

0.0%

0.0% 

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

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

by on-site examinations. 

SAIF Assessment Base Distribution
 

Assessable Deposits in Billions as of December 31, 2004
 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2005
 

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

1,058 

$1,143 

2 

$0 

0 

$0 

93.3% 

98.7% 

0.3% 

0.2% 

0.0% 

0.0% 

65 5.4% 

$13 1.1% 

1 0.2% 

$0 0.0% 

0 0.0% 

$0 0.0% 

9 

$1 

0 

$0 

1 

$0 

0.8%

0.0% 

0.0%

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 Schedule
 

First Semiannual 2005 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. 

ALL FDIC-INSURED INSTITUTIONS 15 FOURTH QUARTER 2004 
FDIC Quarterly Banking Profile 

Number of FDIC-Insured “Problem” Institutions, 1996–2004 

Number of Institutions 

150 

100 

50 

0 

117 

92 

84 79 

94 

114 

136 

116 114 

102 95 

80 

12/96 12/97 12/98 12/99 12/00 12/01 12/02 12/03 3/04 6/04 9/04 12/04 

SAIF Members 

BIF Members 

SAIF Members 31 19 16 13 20 24 20 14 11 9 9 11
 

BIF Members 86 73 68 66 74 90 116 102 103 93 86 69
 

Assets of FDIC-Insured “Problem” Institutions, 1996–2004 

$ Billions 

80 

60 

40 

20 

0 

SAIF Members 

BIF Members 

$40 $39 

$12 

$6 

$11 $10 

$24 

$30 $30 $26 $25 $28 

12/96 12/97 12/98 12/99 12/00 12/01 12/02 12/03 3/04 6/04 9/04 12/04 

SAIF Members 6 2 6 6 13 8 7 1 1 1 1 1 

BIF Members 7 5 5 4 11 32 32 29 29 25 24 27 

FOURTH QUARTER 2004 16 ALL FDIC-INSURED INSTITUTIONS 
 

FDIC Quarterly Banking Profile 

Notes To Users 

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

Corporation (FDIC). These notes are an integral part of this publication and provide information regarding the comparability of 

source data and reporting differences over time. 

Tables I-A through V-A. 

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

Quarterly Banking Profile is aggregated for all FDIC-insured Institutions, both commercial banks and savings institutions. Some tables 

are arrayed by groups of FDIC-insured institutions based on predominant types of asset concentration, while other tables aggregate institutions by asset size and geographic region. Quarterly and full-year 

data are provided for selected indicators, including aggregate condition and income data, performance ratios, condition ratios and 

structural changes, as well as past due, noncurrent and charge-off 

information for loans outstanding and other assets. 

Tables I-B through V-B. 

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

and annual data related to the bank (BIF) and savings association 

(SAIF) insurance funds, closed/assisted institutions, and assessments. 

Summary balance-sheet and earnings data are provided for commercial banks and savings institutions according to insurance fund 

membership. BIF-member institutions may acquire SAIF-insured 

deposits, resulting in institutions with some deposits covered by 

both insurance funds. Also, SAIF members may acquire BIFinsured deposits. Therefore, the BIF-member and the SAIF-member tables each include deposits from both insurance funds. Prior to 

the fourth quarter of 2004, all SAIF deposits held by BIF-member 

institutions and all BIF deposits held by SAIF members (Adjusted 

Attributable Deposit Amounts, or AADAs) were treated as fully 

insured. Beginning in the fourth quarter of 2004, the insured portions of newly acquired AADAs are based on the estimated insured 

share of deposits at the acquired institution. Effective with this 

change, the insured portion of the AADA is assumed to grow at the 

same rate as each institution’s total estimated insured deposits. 

Depository institutions that are not insured by the FDIC through 

either the BIF or SAIF are not included in the FDIC Quarterly 

Banking Profile. U.S. branches of institutions headquartered in foreign countries and non-deposit trust companies are not included 

unless otherwise indicated. Efforts are made to obtain financial 

reports for all active institutions. However, in some cases, final 

financial reports are not available for institutions that have closed 

or converted their charter. 

DATA SOURCES 

The financial information appearing in this publication is obtained 

primarily from the Federal Financial Institutions Examination 

Council (FFIEC) Call Reports and the OTS Thrift Financial Reports 

submitted by all FDIC-insured depository institutions. This information is stored on and retrieved from the FDIC’s Research Information System (RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial Reports to 

provide closer conformance with the reporting and accounting 

requirements of the FFIEC Call Reports. Parent institutions are 

required to file consolidated reports, while their subsidiary financial 

institutions are still required to file separate reports. Data from subsidiary institution reports are included in the Quarterly Banking Profile tables, which can lead to double-counting. No adjustments are 

made for any double-counting of subsidiary data. 

All asset and liability figures used in calculating performance ratios 

represent average amounts for the period (beginning-of-period 

amount plus end-of-period amount plus any interim periods, divided 

by the total number of periods). For “pooling-of-interest” mergers, 

the assets of the acquired institution(s) are included in average 

assets since the year-to-date income includes the results of all
 

merged institutions. No adjustments are made for “purchase
 

accounting” mergers. Growth rates represent the percentage change
 

over a 12-month period in totals for institutions in the base period
 

to totals for institutions in the current period. 


All data are collected and presented based on the location of each
 

reporting institution’s main office. Reported data may include assets
 

and liabilities located outside of the reporting institution’s home
 

state.
 

ACCOUNTING CHANGES
 

FASB Interpretation No. 45 — In November 2002, the FASB issued
 

Interpretation No. 45, Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of
 

Others. This interpretation clarifies that a guarantor is required to
 

recognize, at the inception of a guarantee (financial standby letters
 

of credit, performance standby letters of credit), a liability for the
 

fair value of the obligation undertaken in issuing the guarantee.
 

Banks apply the initial recognition and measurement provisions of
 

Interpretation No. 45 on a prospective basis to guarantees issued or
 

modified after December 31, 2002, irrespective of the bank’s fiscal
 

year end. A bank’s previous accounting for guarantees issued prior to
 

January 1, 2003, is not revised.
 

FASB Interpretation No. 46 — The FASB issued Interpretation No. 46,
 

Consolidation of Variable Interest Entities, in January 2003 and revised
 

it in December 2003. Generally, banks with variable interests in
 

variable interest entities created after December 31, 2003, must consolidate them. The timing of consolidation varies with certain situations with application as late as 2005. The assets and liabilities of a
 

consolidated variable interest entity are reported on a line-by-line
 

basis according to the asset and liability categories shown on the
 

bank’s balance sheet, as well as related income items. Most small
 

banks are unlikely to have any “variable interests” in variable interest entities.
 

Goodwill and intangible assets — FAS 141 terminates the use of
 

pooling-of-interest accounting for business combinations after 2001
 

and requires purchase accounting. Under FAS 142 amortization of
 

goodwill is eliminated. Only intangible assets other than goodwill
 

are amortized each quarter. In addition companies are required to
 

test for impairment of both goodwill and other intangibles once
 

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

accounting change, has been designated a transitional year and the
 

amount of initial impairments are to be recorded as extraordinary
 

losses on a “net of tax” basis (and not as noninterest expense). Subsequent annual review of intangibles and goodwill impairment may
 

require additional noninterest expense recognition. FASB Statement No. 147 clarifies that acquisitions of financial institutions
 

(except transactions between two or more mutual enterprises),
 

including branch acquisitions that meet the definition of a business
 

combination, should be accounted for by the purchase method
 

under FASB Statement No. 141. This accounting standard includes
 

transition provisions that apply to unidentifiable intangible assets
 

previously accounted for in accordance with FASB Statement No.
 

72. If the transaction (such as a branch acquisition) in which an 

unidentifiable intangible asset arose does not meet the definition of 

a business combination, this intangible asset is not be reported as 

“Goodwill” on the Call Report balance sheet. Rather, this unidentifiable intangible asset is reported as “Other intangible assets,” and 

must continue to be amortized and the amortization expense should 

be reported in the Call Report income statement. 

FASB Statement No. 133 Accounting for Derivative Instruments and Hedging Activities — establishes new accounting and reporting standards. Derivatives were previously off-balance sheet items, but 

beginning in 2001 all banks must recognize derivatives as either 

assets or liabilities on the balance sheet, measured at fair value. A 

derivative may be specifically designated as a “fair value hedge,” a 

“cash flow hedge,” or a hedge of a foreign currency exposure. The 

accounting for changes in the value of a derivative (gains and losses) depends on the intended use of the derivative, its resulting designation, and the effectiveness of the hedge. Derivatives held for 

purposes other than trading are reported as “other assets” (positive 

ALL FDIC-INSURED INSTITUTIONS 17 FOURTH QUARTER 2004 
FDIC Quarterly Banking Profile 

fair values) or “other liabilities” (negative fair values). For a fair 

value hedge, the gain or loss is recognized in earnings and “effectively” offsets loss or gain on the hedged item attributable to the risk 

being hedged. Any ineffectiveness of the hedge could result in a net 

gain or loss on the income statement. Accumulated net gains (losses) on cash flow hedges are recorded on the balance sheet as “accumulated other comprehensive income” and the periodic change in 

the accumulated net gains (losses) for cash flow hedges is reflected 

directly in equity as the value of the derivative changes. 

Initial transition adjustments upon adoption of FAS 133 are reported 

as adjustments to net income in the income statement as extraordinary items. Upon implementing FAS 133, a bank may transfer any 

debt security categorized as held-to-maturity into the available-forsale category or the trading category. Unrealized gains (losses) on 

transferred held-to-maturity debt securities on the date of initial 

application must be reflected as an adjustment to net income if transferred to the trading category or an adjustment to equity if transferred 

to the available-for-sale category. 

FASB Statement No. 149, Amendment of Statement 133 on Derivative 

Instruments and Hedging Activities — provides guidance on the circumstances in which a loan commitment must be accounted for as derivative. Under Statement No. 149, loan commitments that relate to 

the origination of mortgage loans that will be held for sale, commonly referred to as interest rate lock commitments, must be accounted 

for as derivatives on the balance sheet by the issuer of the commitment. 

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 have 

the effect of reducing institutions’ reported taxes and increasing their 

after-tax earnings. 

The election of Subchapter S status may result in an increase in 

shareholders’ personal tax liability. Therefore, some S corporations 

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

DEFINITIONS (in alphabetical order) 

All other assets — total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, investment in unconsolidated subsidiaries, customers’ liability on 

acceptances outstanding, assets held in trading accounts, federal 

funds sold, securities purchased with agreements to resell, fair market 

value of derivatives, and other assets. 

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

fair market value of derivatives, and other liabilities. 

Assessment base distribution — assessable deposits consist of BIF and 

SAIF deposits in banks’ domestic offices with certain adjustments. 

Each institution’s assessment depends on its assigned risk-based capital category and supervisory risk subgroup: 

Total Tier 1
 

Risk-Based Risk-Based Tier 1 Tangible
 

(Percent) Capital * Capital * Leverage Equity
 

Well-capitalized >10 and >6 and >5 — 

Adequately 

capitalized >8 and >4 and >4 — 

Undercapitalized >6 and >3 and >3 — 

Significantly 

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

Critically 

undercapitalized — — — <2 

*As a percentage of risk-weighted assets. 

For purpose of BIF and SAIF assessments, risk-based assessment rules 

combine the three lowest capital rating categories into a single 

“undercapitalized” group. Supervisory risk subgroup assignments are 

based on supervisory ratings. Generally, the strongest institutions 

(those rated 1 or 2) are in subgroup A, those rated 3 are in subgroup 

B, and those rated 4 or 5 are in subgroup C. 

Assets securitized and sold — total outstanding principal balance of 

assets sold and securitized with servicing retained or other seller-provided credit enhancements. 

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

deposits that is insured by the BIF. For SAIF-member “Oakar” institutions, it is based on the adjusted attributable amount acquired from 

BIF members. 

Construction and development loans — includes loans for all property 

types under construction, as well as loans for land acquisition and 

development. 

Core capital — common equity capital plus noncumulative perpetual 

preferred stock plus minority interest in consolidated subsidiaries, less 

goodwill and other ineligible intangible assets. The amount of eligible intangibles (including servicing rights) included in core capital is 

limited in accordance with supervisory capital regulations. 

Cost of funding earning assets — total interest expense paid on 

deposits and other borrowed money as a percentage of average earning assets. 

Derivatives (notional amount) — represents the sum of the following: 

interest-rate contracts (defined as the “notional” value of interestrate swap, futures, forward and option contracts), foreign-exchangerate contracts, commodity contracts and equity contracts (defined 

similarly to interest-rate contracts). 

Futures and forward contracts — a contract in which the buyer agrees to purchase and the seller agrees to sell, at a specified

future date, a specific quantity of an underlying variable or index

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

variables or indices, (traditional agricultural or physical commodities, as well as currencies and interest rates). Futures contracts are standardized and are traded on organized exchanges

which set limits on counterparty credit exposure. Forward contracts do not have standardized terms and are traded over the 

counter. 

Option contracts — a contract in which the buyer acquires the right to buy from or sell to another party some specified amount

of an underlying variable or index at a stated price (strike price)

during a period or on a specified future date, in return for compensation (such as a fee or premium). The seller is obligated to

purchase or sell the variable or index at the discretion of the

buyer of the contract. 

Swaps — an obligation between two parties to exchange a series of cash flows at periodic intervals (settlement dates), for a specified period. The cash flows of a swap are either fixed, or determined for each settlement date by multiplying the quantity

(notional principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the

notional principal is used to calculate each payment but is not

exchanged. 

Domestic deposits to total assets — total domestic office deposits as a 

percent of total assets on a consolidated basis.
 

Earning assets — all loans and other investments that earn interest or
 

dividend income.
 

Efficiency Ratio — Noninterest expense less amortization of intangible
 

assets as a percent of net interest income plus noninterest income.
 

This ratio measures the proportion of net operating revenues that are
 

absorbed by overhead expenses, so that a lower value indicates
 

greater efficiency.
 

Estimated insured deposits — in general, insured deposits are total
 

domestic deposits minus estimated uninsured deposits. While the
 

uninsured estimate is calculated as the sum of the excess amounts in
 

accounts over $100,000, beginning June 30, 2000 the amount of estimated uninsured deposits was adjusted to consider a financial institution’s better estimate. Since March 31, 2002, all institutions provide
 

FOURTH QUARTER 2004 18 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

a reasonable estimate of uninsured deposits from their systems and 

records. 

Failed/assisted institutions — an institution fails when regulators take 

control of the institution, placing the assets and liabilities into a 

bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover 

losses. An institution is defined as “assisted” when the institution 

remains open and receives some insurance funds in order to continue 

operating. 

FHLB advances — all borrowings by FDIC insured institutions from 

the Federal Home Loan Bank System (FHLB), as reported by Call 

Report filers and by TFR filers. 

Goodwill and other intangibles — intangible assets include servicing 

rights, purchased credit card relationships and other identifiable 

intangible assets. 

Loans secured by real estate — includes home equity loans, junior 

liens secured by 1-4 family residential properties and all other loans 

secured by real estate. 

Loans to individuals — includes outstanding credit card balances and 

other secured and unsecured consumer loans.
 

Long-term assets (5+ years) — loans and debt securities with remaining maturities or repricing intervals of over five years.
 

Mortgage-backed securities — certificates of participation in pools of
 

residential mortgages and collateralized mortgage obligations issued
 

or guaranteed by government-sponsored or private enterprises.
 

Also, see “Securities”, below.
 

Net charge-offs — total loans and leases charged off (removed from
 

balance sheet because of uncollectibility), less amounts recovered on
 

loans and leases previously charged off.
 

Net interest margin — the difference between interest and dividends
 

earned on interest-bearing assets and interest paid to depositors and
 

other creditors, expressed as a percentage of average earning assets.
 

No adjustments are made for interest income that is tax exempt.
 

Net loans to total assets — loans and lease financing receivables, net
 

of unearned income, allowance and reserves, as a percent of total
 

assets on a consolidated basis.
 

Net operating income — income excluding discretionary transactions
 

such as gains (or losses) on the sale of investment securities and
 

extraordinary items. Income taxes subtracted from operating
 

income have been adjusted to exclude the portion applicable to
 

securities gains (or losses).
 

Noncurrent assets — the sum of loans, leases, debt securities and
 

other assets that are 90 days or more past due, or in nonaccrual status. 


Noncurrent loans & leases — the sum of loans and leases 90 days or 

more past due, and loans and leases in nonaccrual status. 

Number of institutions reporting — the number of institutions that 

actually filed a financial report. 

Other borrowed funds — federal funds purchased, securities sold with 

agreements to repurchase, demand notes issued to the U.S. Treasury, 

FHLB advances, other borrowed money, mortgage indebtedness, 

obligations under capitalized leases and trading liabilities, less revaluation losses on assets held in trading accounts. 

Other real estate owned — primarily foreclosed property. Direct and 

indirect investments in real estate ventures are excluded. The 

amount is reflected net of valuation allowances. For institutions 

that file a Thrift Financial Report (TFR), the valuation allowance 

subtracted also includes allowances for other repossessed assets. 

Also, for TFR filers the components of other real estate owned are 

reported gross of valuation allowances. 

Percent of institutions with earnings gains — the percent of institutions 

that increased their net income (or decreased their losses) compared 

to the same period a year earlier. 

“Problem” institutions — federal regulators assign a composite rating 

to each financial institution, based upon an evaluation of financial 

and operational criteria. The rating is based on a scale of 1 to 5 in 

ascending order of supervisory concern. “Problem” institutions are 

those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending 

upon the degree of risk and supervisory concern, they are rated 

either a “4” or “5”. For all BIF-member institutions, and for all 

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 on a 

consolidated basis. Between March 31, 2001 and March 31, 2003 

reserves for losses did not include the allocated transfer risk reserve, 

which was netted from loans and leases. 

Restructured loans and leases — loan and lease financing receivables 

with terms restructured from the original contract. Excludes restructured loans and leases that are not in compliance with the modified 

terms. 

Retained earnings — net income less cash dividends on common and 

preferred stock for the reporting period.
 

Return on assets — net income (including gains or losses on securities and extraordinary items) as a percentage of average total assets.
 

The basic yardstick of bank profitability.
 

Return on equity — net income (including gains or losses on securities and extraordinary items) as a percentage of average total equity
 

capital.
 

Risk-weighted assets — assets adjusted for risk-based capital definitions which include on-balance-sheet as well as off-balance-sheet
 

items multiplied by risk-weights that range from zero to 100 percent.
 

A conversion factor is used to assign a balance sheet equivalent
 

amount for selected off-balance-sheet accounts.
 

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

deposits that is insured by the SAIF. For BIF-member “Oakar” institutions, it is based on 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-for-sale”, reported at fair (market) value.
 

Securities gains (losses) — realized gains (losses) on held-to-maturity
 

and available-for-sale securities, before adjustments for income taxes.
 

Thrift Financial Report (TFR) filers also include gains (losses) on
 

the sales of assets held for sale.
 

Troubled real estate asset rate — noncurrent real estate loans plus
 

other real estate owned as a percent of total real estate loans and
 

other real estate owned.
 

Trust assets — market value, or other reasonably available value of
 

fiduciary and related assets, to include marketable securities, and
 

other financial and physical assets. Common physical assets held
 

in fiduciary accounts include real estate, equipment, collectibles,
 

and household goods. Such fiduciary assets are not included in
 

the assets of the financial institution.
 

Unearned income & contra accounts — unearned income for Call 

Report filers only. 

Unused loan commitments — includes credit card lines, home equity 

lines, commitments to make loans for construction, loans secured by 

commercial real estate, and unused commitments to originate or 

purchase loans. (Excluded are commitments after June 2003 for 

originated mortgage loans held for sale, which are accounted for as 

derivatives on the balance sheet.) 

Volatile liabilities — the sum of large-denomination time deposits, 

foreign-office deposits, federal funds purchased, securities sold under 

agreements to repurchase, and other borrowings. 

Yield on earning assets — total interest, dividend and fee income 

earned on loans and investments as a percentage of average earning 

assets. 

ALL FDIC-INSURED INSTITUTIONS 19 FOURTH QUARTER 2004 
The FDIC Quarterly Banking Profile is published quarterly by the Division of Insurance and Research of the Federal 

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

through the FDIC Public Information Center, 801 17th Street, NW, Washington, DC 20434; Telephone (202) 416­

6940 or (877) 275-3342; or Email: publicinfo@fdic.gov. 

The FDIC Quarterly Banking Profile is available on-line by visiting the FDIC’s website at www.fdic.gov. Comparable 

financial data for individual institutions can now be obtained from the FDIC’s Institution Directory (I.D.) System on 

this web site. 

Chairman Donald E. Powell 

Director, Division of Insurance 

and Research 

Arthur J. Murton 

Media Inquiries (202) 898-6993

Authors Richard Brown 

Associate Director, Risk Analysis Branch 

Chief Economist, FDIC 

(202) 898-3927

Kevin Brown 

(202) 898-6817

Ross Waldrop 

(202) 898-3951