Quarterl Bankin Profile

FDIC-INSURED INSTITUTIONS FIRST QUARTER 2003 

• Industry Earnings Of $29.4 Billion Set New Record 

•	 Domestic Asset-Quality Indicators Improve For 

Second Quarter In A Row 

• Net Interest Margins Continue To Narrow 

• Asset Growth Remains Strong, Propelled By Mortgage Activity 

Net Income, ROA Reach New Highs 

An improving trend in troubled loans and low interest

rates contributed to a favorable environment for bank

and thrift earnings in the first quarter of 2003. Lower

expenses for credit losses and sizable gains on sales of

securities helped lift earnings of FDIC­insured institutions to record levels. Insured commercial banks and

savings institutions earned $29.4 billion in the quarter,

an increase of $4.0 billion (15.9 percent) over the first

quarter of 2002. This is the largest quarterly earnings

total ever reported by the industry, easily surpassing the

previous record of $27.3 billion set in the third quarter

of 2002. The industry's return on assets (ROA) also

reached a record level, rising to 1.38 percent from 1.29

percent a year ago. The previous record ROA for a

quarter was 1.37 percent, set in the second quarter of

2002. Almost two out of every three institutions (61.0

percent) reported higher earnings than a year ago, while

slightly more than half (50.3 percent) reported improved

ROAs. Only 538 institutions reported a net loss for the

quarter, down from 669 in the first quarter of 2002.

This is the lowest number of unprofitable institutions

since 496 reported net losses in the first quarter of 1998.

Lower Credit Costs, Higher Nonrecurring Gains Boost 

Profits 

Lower interest rates boosted the market values of fixedrate securities, and insured institutions realized $3.7 billion in gains on securities sales in the first quarter,

compared to $1.3 billion in gains a year earlier. These

and other nonrecurring gains accounted for 41.4 percent

of the $4.0­billion increase in industry profits. A decline

in provisions for loan losses also helped the industry's

Chart 1 

First Quarter Net Income Surpasses Previous Record 

$ Billions 

40 

30 

20 

10 

0 

1999 2000 2001 2002 2003 

20.6 19.8 

22.2 20.4 

22.4 21.8 

17.4 20.2 

22.7 22.5 20.8 22.1 

25.3 

27.3 27.3 25.5 

29.4 

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

Securities and Other Gains/Losses, Net 

Net Operating Income 

bottom line. Loss provisions for domestic operations

were $2.2 billion (19.9 percent) lower than a year ago,

the second consecutive quarter that credit expenses

have declined. In contrast, provisions for credit losses in

international operations were up by $261 million (26.2

percent). Noninterest income growth slowed for the

third consecutive quarter, but these revenues were still

up by $3.5 billion (8.0 percent) compared to the first

quarter of 2002. The increase was led by higher gains

from loan sales and gains on derivatives contracts, but

was limited by lower servicing income, which was below

the year­earlier level for a fourth consecutive quarter.

The large volume of mortgage refinancing activity continues to produce accelerated pre­payments of older,

higher­rate mortgages, which reduces the value of

lenders' mortgage servicing assets. Market­sensitive revenues were generally weak. Trust income was $249 million (4.8 percent) lower than a year ago, investment

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

 

 

 

FDIC Quarterly Banking Profile 

banking income was down $91 million (3.9 percent),

while banks posted net losses of $59 million on their

venture capital investments. Trading income was

$187 million (6.5 percent) higher than a year ago,

but this growth lagged the growth rate of total noninterest revenues.

Chart 2 

Net Interest Margins Continue To Fall 

Net Interest Margin (%) 

5.0 

Assets < $100 Million 

4.08 

4.0 

3.79 

Assets > $100 Million 

3.0 

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

1999 2000 2001 2002 2003 

Margin Erosion Is Greatest At Larger Institutions 

Net interest income was only $870 million (1.3 percent) higher than in the first quarter of 2002. This

is the smallest increase since the first quarter of

1994, because of shrinking net interest margins

(earning assets grew by 9.3 percent during the past

12 months). The average net interest margin in the

first quarter was 3.80 percent, 26 basis points lower

than a year earlier, and the lowest level for the

industry since the second quarter of 2001. In an

environment of low and falling interest rates, average asset yields have fallen more rapidly than average funding costs. Over the last four quarters, this

trend has been particularly pronounced at larger

institutions. Among institutions with less than $100

million in assets, which comprise half of all FDICinsured banks and thrifts, the average net interest

margin has fallen by 7 basis points in the last four

quarters; at larger institutions, the margin decline

over this period has averaged 27 basis points.

Chart 3 

Large Institutions’ Cost Of Funding Earning Assets 

Is Now Below Smaller Institutions’ 

Average Funding Cost (%) 

0 

2 

4 

6 

1.78 

Assets < $100 Million 2.00

Assets > $100 Million 

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

1997 1998 1999 2000 2001 2002 2003 

Consumer-Related Business Lines Register Strongest 

Results 

As has been the case in recent quarters, earnings

strength continued to be most evident in consumerrelated business segments. Compared to the first

quarter of 2002, the largest improvement in profitability was registered by credit­card lenders. Their

average ROA rose to 3.66 percent from 3.22 percent

a year earlier, when the group's results were

depressed by losses related to the sale of a large subprime credit­card loan portfolio. This group continues to enjoy the highest profitability of any major

industry segment, with an ROA more than double

the industry average. Large banks with significant

overseas operations also saw their profitability

improve. The quarterly ROA for these "International Banks" rose to 1.17 percent, from 0.82 percent a

year earlier. While income from international operations was up, much of this improvement can be

traced to lower expenses for losses related to domestic commercial lending. Institutions with concentrations of residential mortgage assets continued to

benefit from strong demand for home mortgages.

The "Mortgage Lenders" group saw its ROA improve

to 1.49 percent, up from 1.31 percent in the first

quarter of 2002. The "Consumer Lenders" group

likewise saw its ROA increase from 1.44 percent to

1.57 percent. Average ROAs at commercial lenders,

agricultural banks, and large and small banks with

no identified asset concentrations were flat compared to a year ago.

FIRST QUARTER 2003 2 ALL FDIC-INSURED INSTITUTIONS 
 

FDIC Quarterly Banking Profile 

Chart 4 Chart 5 

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

0 

10 

20 

30 

40 

$ Billions 

Quarterly Net Charge-offs 

Noncurrent Loans 

1998 1999 2000 2001 

29.5 

3.3 

26.2 

2002 

8.7 

2003 

6 

8 

10 

12 

14 

Ratio (%) 

Core Capital (Leverage) 

Equity to Assets 

Tier 1 Risk-Based Capital 

Total Risk-Based Capital 

1997 1998 1999 2000 2001 2002 2003 

Risk-Based Capital Measures Are At Record 

High Levels 

Troubled C&I Loans Continue to Decline 

Domestic Commercial Credits Show Further 

Improvement 

Net charge­offs totaled $10.4 billion, $1.2 billion

(10.6 percent) below the level of the first quarter of

2002. This is the second quarter in a row that

industry charge­offs have been lower than a year earlier, following a two­and­a­half year trend of rising

charge­offs. Net charge­offs of credit­card loans

were $911 million (18.5 percent) lower than a year

ago, when the sale of a large subprime credit­card

portfolio produced a spike in charge­offs. Net

charge­offs of commercial and industrial (C&I) loans

were $396 million (10.7 percent) lower, as losses on

loans to domestic C&I borrowers declined by $697

million (21.0 percent) and losses on loans to nonU.S. C&I borrowers rose by $301 million (76.3 percent). 

The amount of loans and leases that were noncurrent (90 days or more past due or in nonaccrual status) declined by $1.7 billion (2.5 percent) during the

first quarter. C&I loans continued to show an

improving trend, as noncurrent C&I loans fell by

$1.3 billion (4.7 percent), the second consecutive

quarterly decline. All of the improvement occurred

in loans to domestic C&I borrowers. The amount of

loans to non­U.S. C&I borrowers that was noncurrent increased by $3.3 million in the first quarter.

Noncurrent credit­card loans also declined in the

first quarter, by $919 million (14.3 percent). The

only significant increases in noncurrent loans in the

first quarter were in loans secured by commercial

real estate properties, where noncurrent loans

increased by $539 million (8.8 percent).

Risk-Based Capital Measures Set New Record 

Reserves for loan losses increased by only $574 million (0.7 percent) in the first quarter, as loss provisions of $10.3 billion were $74 million less than net

charge­offs. The industry's ratio of reserves to total

loans fell from 1.69 percent to 1.67 percent, the lowest level since the third quarter of 2001. However,

the decline in noncurrent loans during the quarter

meant that the "coverage ratio" rose from $1.24 in

reserves for every $1.00 in noncurrent loans to

$1.28. Equity capital increased by $15.2 billion (2.0

percent), as retained earnings totaled $11.8 billion.

This growth kept pace with total assets, and the

industry's equity­to­assets ratio remained unchanged

at 9.20 percent. However, a shift toward lower riskweighted assets caused two of the three regulatory

capital ratios - the tier 1 capital ratio and the total

risk­based capital ratio - to rise to record highs of

10.60 percent and 13.20 percent, respectively. The

third regulatory capital ratio, the core capital (leverage) ratio, increased from 7.87 percent to 7.88 percent, slightly below the all­time high of 8.03 percent

recorded at mid­year 2002.

ALL FDIC-INSURED INSTITUTIONS 3 FIRST QUARTER 2003 
 

 

 

 

 

FDIC Quarterly Banking Profile 

Chart 6 

Consumer-Related Business Lines Exhibit 

Greater Earnings Strength ROA (%) 

4.0 3.7 

3.0 

2.0 

1.6 1.5 1.3 1.3 1.3 1.2 1.2 1.1 

1.0 

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

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

<$1 Billion 

Mortgage Activity Accounts for Bulk of Asset Growth 

Mortgage­related assets - mortgage­backed securities, residential mortgage loans, and home equity

loans - increased by $119.8 billion (4.5 percent) during the quarter, accounting for 70.4 percent of the

$170.1 billion increase in total industry assets.

Mortgage­backed securities were up by $67.6 billion

(7.4 percent), residential mortgage loans grew by

$32.5 billion (2.2 percent), and home equity loans

increased by $19.7 billion (7.7 percent). Adjustablerate mortgages (ARMs) accounted for only 24 percent ($7.8 billion) of the increase in mortgage loans.

Growth was also strong in Fed funds sold and repurchase agreements (up $40.0 billion, or 11.8 percent),

and in loans to depository institutions, which

increased by $27.8 billion (20.8 percent). C&I

loans declined for the ninth consecutive quarter,

although the rate of decline has slowed over the last

three quarters. C&I loans fell by $4.2 billion (0.4

percent) during the quarter, compared to an $8.3­billion decline in the fourth quarter of 2002. A majority of institutions (53.9 percent) had increases in

their C&I portfolios in the first quarter. Leases

declined for the fifth quarter in a row, falling by $5.9

billion (3.6 percent).

Domestic Deposit Growth Remains Strong 

Domestic deposits increased by $115.4 billion (2.3

percent) during the quarter, as savings deposits at

commercial banks increased by $93.0 billion (4.2

percent). Brokered deposits registered a strong

($22.8 billion, 8.0 percent) increase. Fed funds

purchased and reverse repurchase agreements rose

by $23.3 billion (3.6 percent) at insured banks and

thrifts. Deposits in foreign offices declined by $5.2

billion (0.8 percent), and domestic office demand

deposits had a seasonal decline of $5.9 billion (1.0

percent). Banks and thrifts reduced their Federal

Home Loan Bank (FHLB) borrowings by $1.6 billion

(0.4 percent) during the quarter.

The number of insured institutions reporting financial results declined by 40 during the quarter, from

9,354 to 9,314. There were 26 new institutions

added, while 65 were absorbed by mergers. One

insured bank failed. The number of institutions on

the FDIC's "Problem List" declined from 136 to 129

during the first quarter, while total assets of "Problem" institutions fell from $38.9 billion to $34.7 billion. Three mutually­owned savings institutions,

with $779 million in combined assets, converted to

stock ownership during the quarter.

FIRST QUARTER 2003 4 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

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

2003** 2002** 2002 2001 2000 1999 1998 

Return on assets (%) ............................................................... 1.38 1.29 1.30 1.14 1.14 1.25 1.16 

Return on equity (%) ................................................................ 15.00 14.20 14.14 12.99 13.55 14.71 13.51 

Core capital (leverage) ratio (%) .............................................. 7.88 7.94 7.87 7.79 7.71 7.80 7.59 

Noncurrent assets plus 

other real estate owned to assets (%) ................................... 0.86 0.92 0.90 0.88 0.71 0.63 0.66 

Net charge-offs to loans (%) .................................................... 0.81 0.98 0.97 0.83 0.59 0.53 0.59 

Asset growth rate (%) ............................................................... 10.02 3.31 7.21 5.45 8.40 5.40 8.05 

Net interest margin (%) ............................................................ 3.80 4.06 3.96 3.78 3.78 3.90 3.91 

Net operating income growth (%) ............................................ 9.62 12.94 18.40 -0.87 1.93 19.72 3.02 

Number of institutions reporting ............................................... 9,314 9,521 9,354 9,613 9,905 10,222 10,464 

Commercial banks ................................................................ 7,864 8,005 7,887 8,079 8,316 8,580 8,774 

Savings Institutions ............................................................... 1,450 1,516 1,467 1,534 1,589 1,642 1,690 

Percentage of unprofitable institutions (%) .............................. 5.78 7.03 6.52 8.20 7.53 7.64 5.97 

Number of problem institutions.......................................... 129 124 136 114 94 79 84 

Assets of problem institutions (in billions).............................. $35 $52 $39 $40 $24 $10 $11 

Number of failed/assisted institutions................................. 1 6 11 4 7 8 3 

*Excludes insured branches of foreign banks (IBAs).
 

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

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

(dollar figures in millions) 1st Quarter 

2003 

4th Quarter 

2002 

1st Quarter 

2002 

%Change 

02:1-03:1 

Number of institutions reporting ........................................................................... 9,314 9,354 9,521 -2.2 

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

CONDITION DATA 

2,029,746 2,017,645 1,994,168 1.8 

Total assets .......................................................................................................... $8,606,043 $8,435,990 $7,822,545 10.0 

Loans secured by real estate ............................................................................ 2,925,591 2,849,855 2,558,062 14.4 

1-4 Family residential mortgages ................................................................... 1,545,852 1,513,308 1,344,678 15.0 

Commercial real estate .................................................................................. 641,489 627,556 585,378 9.6 

Construction and development ....................................................................... 250,561 244,952 232,266 7.9 

Home equity lines ........................................................................................... 276,096 256,393 198,969 38.8 

Commercial & industrial loans ........................................................................... 949,371 953,584 1,003,817 -5.4 

Loans to individuals ........................................................................................... 754,223 772,450 718,080 5.0 

Credit cards .................................................................................................... 265,917 291,705 264,482 0.5 

Farm loans ........................................................................................................ 44,674 47,326 45,538 -1.9 

Other loans & leases ......................................................................................... 455,696 435,992 432,169 5.4 

Less: Unearned income .................................................................................... 3,621 3,549 4,003 -9.5 

Total loans & leases .......................................................................................... 5,125,934 5,055,657 4,753,664 7.8 

Less: Reserve for losses ................................................................................... 85,846 85,272 82,947 3.5 

Net loans and leases ......................................................................................... 5,040,088 4,970,386 4,670,717 7.9 

Securities ........................................................................................................... 1,694,374 1,632,879 1,488,246 13.9 

Other real estate owned .................................................................................... 5,436 5,253 4,876 11.5 

Goodwill and other intangibles .......................................................................... 156,800 153,096 158,033 -0.8 

All other assets .................................................................................................. 1,709,346 1,674,376 1,500,667 13.9 

Total liabilities and capital .................................................................................... 8,606,043 8,435,990 7,822,545 10.0 

Deposits ............................................................................................................ 5,678,637 5,568,506 5,172,247 9.8 

Domestic office deposits ................................................................................ 5,025,829 4,910,473 4,568,725 10.0 

Foreign office deposits ................................................................................... 652,808 658,033 603,522 8.2 

Other borrowed funds ........................................................................................ 1,590,633 1,570,900 1,491,253 6.7 

Subordinated debt ............................................................................................. 100,507 98,554 96,727 3.9 

All other liabilities ............................................................................................... 444,718 421,719 340,822 30.5 

Equity capital ..................................................................................................... 791,548 776,311 721,495 9.7 

Loans and leases 30-89 days past due ................................................................ 55,436 58,245 57,734 -4.0 

Noncurrent loans and leases ................................................................................ 67,195 68,897 65,024 3.3 

Restructured loans and leases ............................................................................. 2,958 3,279 3,492 -15.3 

Direct and indirect investments in real estate ....................................................... 711 712 698 1.8 

Mortgage-backed securities ................................................................................. 979,647 912,095 814,092 20.3 

Earning assets ...................................................................................................... 7,457,573 7,289,671 6,824,736 9.3 

FHLB advances .................................................................................................... 448,825 450,458 442,650 1.4 

Unused loan commitments ................................................................................... 5,786,793 5,638,021 5,382,833 7.5 

Trust assets .......................................................................................................... 10,709,952 11,031,087 12,397,230 -13.6 

Assets securitized and sold*** .............................................................................. 850,252 1,200,630 1,087,677 -21.8 

Notional amount of derivatives*** ......................................................................... 61,914,850 56,292,887 46,853,839 32.1 

INCOME DATA 

1st Quarter 

2002 

%Change 

02:1-03:1 

Full Year 

2002 

Full Year 

2001 %Change 

1st Quarter 

2003 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

$429,720 $486,782 -11.7 102,938 108,329 -5.0 

152,903 235,010 -34.9 32,992 39,253 -16.0 

276,817 251,772 10.0 69,946 69,076 1.3 

51,514 46,259 11.4 10,292 12,269 -16.1 

183,094 168,773 8.5 47,956 44,409 8.0 

263,188 251,095 4.8 67,290 63,795 5.5 

12,043 8,732 37.9 3,711 1,318 181.5 

52,034 44,025 18.2 14,632 13,318 9.9 

-44 -649 N/M -21 -72 N/M 

105,174 87,249 20.5 29,377 25,348 15.9

5,964 6,926 -13.9 2,097 1,625 29.0 

47,033 38,836 21.1 10,366 11,591 -10.6 

75,448 60,671 24.4 17,555 21,152 -17.0 

29,727 26,578 11.9 11,822 4,196 181.7 

97,100 82,011 18.4 26,886 24,526 9.6 

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

ALL FDIC-INSURED INSTITUTIONS 5 FIRST QUARTER 2003 
FDIC Quarterly Banking Profile 

TABLE III-A. First Quarter 2003, All FDIC-Insured Institutions 

FIRST QUARTER 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

International 

Banks 

Agricultural 

Banks 

Credit Card 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

9,314 6 1,800 40 4,099 1,072 172 501 1,525 99 

Commercial banks .............................................. 7,864 6 1,796 38 3,755 254 129 434 1,371 81 

Savings institutions ............................................. 1,450 0 4 2 344 818 43 67 154 18 

Total assets (in billions) ......................................... $8,606.0 $1,327.7 $121.7 $237.3 $3,053.9 $1,418.3 $366.0 $59.1 $201.9 $1,820.2 

Commercial banks .............................................. 7,196.4 1,327.7 121.4 235.9 2,842.5 414.6 319.2 44.7 168.4 1,721.9 

Savings institutions ............................................. 1,409.7 0.0 0.3 1.4 211.4 1,003.7 46.8 14.4 33.6 98.3 

Total deposits (in billions) ...................................... 5,678.6 757.4 101.1 77.0 2,211.3 859.8 205.7 44.7 166.6 1,255.0 

Commercial banks .............................................. 4,778.5 757.4 100.8 76.6 2,066.7 235.4 176.5 34.0 139.8 1,191.3 

Savings institutions ............................................. 900.2 0.0 0.2 0.4 144.6 624.4 29.3 10.8 26.9 63.6 

Net income (in millions) ......................................... 29,377 3,862 376 2,227 9,942 5,171 1,394 183 566 5,656 

Commercial banks .............................................. 24,942 3,862 375 2,210 9,227 1,954 1,235 141 514 5,425 

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

Performance Ratios (annualized,%) 

4,434 0 1 17 716 3,217 159 41 53 231 

Yield on earning assets ......................................... 5.59 5.24 6.11 10.80 5.72 5.47 6.13 4.64 5.95 4.81 

Cost of funding earning assets .............................. 1.79 1.94 2.10 2.41 1.73 2.09 1.51 1.68 2.01 1.47 

Net interest margin ............................................. 3.80 3.30 4.00 8.39 4.00 3.37 4.61 2.96 3.94 3.33 

Noninterest income to assets ................................ 2.25 3.18 0.67 11.48 1.63 1.25 2.59 5.90 0.93 2.20 

Noninterest expense to assets .............................. 3.16 3.54 2.68 9.02 2.99 2.29 3.44 6.75 2.92 2.94 

Loan and lease loss provision to assets ................ 0.48 0.71 0.18 4.00 0.38 0.16 0.66 0.08 0.20 0.29 

Net operating income to assets ............................. 1.26 1.04 1.20 3.65 1.24 1.19 1.54 1.15 1.07 1.18 

Pretax return on assets ......................................... 2.07 1.74 1.54 5.75 1.93 2.31 2.50 1.81 1.51 1.86 

Return on assets ................................................... 1.38 1.17 1.24 3.66 1.32 1.49 1.57 1.25 1.13 1.25 

Return on equity .................................................... 15.00 15.43 11.49 23.19 14.08 16.48 18.45 7.64 10.68 13.89 

Net charge-offs to loans and leases ...................... 0.81 1.69 0.15 5.57 0.55 0.19 0.90 0.36 0.25 0.61 

Loan and lease loss provision to net charge-offs .. 99.29 102.01 201.04 90.88 102.88 127.68 93.09 78.77 138.93 94.12 

Efficiency ratio ....................................................... 55.92 59.81 61.26 46.23 56.30 52.71 51.90 78.71 63.89 57.65 

% of unprofitable institutions ................................. 5.78 0.00 3.78 5.00 6.56 5.22 2.91 13.77 4.33 3.03 

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

Condition Ratios (%) 

60.97 66.67 50.83 57.50 69.85 58.86 61.05 45.31 56.33 52.53 

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

Loss allowance to: 

86.66 79.16 92.02 86.47 89.22 90.89 86.52 88.39 91.67 83.59 

Loans and leases ............................................... 1.67 2.50 1.54 5.12 1.59 0.76 1.20 1.65 1.37 1.79 

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

Noncurrent assets plus 

127.76 99.27 110.50 256.98 139.49 83.77 130.30 101.80 129.96 129.91 

other real estate owned to assets ...................... 0.86 1.09 0.97 1.65 0.86 0.68 0.81 0.63 0.72 0.76 

Equity capital ratio ................................................. 9.20 7.58 10.78 16.47 9.36 9.01 8.45 16.07 10.58 8.97 

Core capital (leverage) ratio .................................. 7.88 6.59 10.11 15.38 8.16 7.54 7.22 14.57 9.82 7.17 

Tier 1 risk-based capital ratio ................................ 10.60 9.51 14.85 14.15 10.00 12.80 8.68 31.37 16.28 9.62 

Total risk-based capital ratio ................................. 13.20 13.02 15.99 16.49 12.29 14.52 12.24 32.53 17.44 12.80 

Net loans and leases to deposits .......................... 88.76 70.52 72.27 229.15 90.72 107.10 139.72 35.23 67.54 72.81 

Net loans to total assets ........................................ 58.56 40.23 60.00 74.39 65.69 64.93 78.54 26.67 55.73 50.20 

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

Structural Changes 

58.40 26.37 83.02 29.57 70.28 59.59 51.52 74.59 82.39 61.23 

New Charters ..................................................... 26 0 1 0 8 0 0 17 0 0 

Institutions absorbed by mergers ....................... 65 0 6 0 44 10 1 1 2 1 

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

PRIOR FIRST QUARTERS 

(The way it was...) 

1 0 0 0 1 0 0 0 0 0 

Number of institutions .................................. 2002 9,521 6 1,852 48 4,032 1,201 214 463 1,610 95 

.............................................. 2000 10,152 7 2,046 57 3,838 1,332 303 575 1,912 82 

.............................................. 1998 10,780 11 2,338 69 3,398 1,568 297 607 2,398 94 

Total assets (in billions) ............................... 2002 $7,822.5 $1,210.8 $118.5 $299.3 $3,578.7 $1,191.1 $151.4 $49.5 $198.2 $1,025.1 

.............................................. 2000 7,003.3 1,109.6 116.0 254.1 3,605.0 999.0 99.3 56.4 224.0 540.0 

.............................................. 1998 6,152.7 1,403.7 118.0 210.5 2,071.0 980.2 80.6 65.8 285.2 937.8 

Return on assets (%) .................................. 2002 1.29 0.82 1.25 3.22 1.34 1.31 1.44 -2.11 1.15 1.26 

.............................................. 2000 1.29 1.31 1.28 2.89 1.28 1.14 1.41 1.87 1.16 0.85 

.............................................. 1998 1.22 0.83 1.28 2.54 1.33 1.06 1.31 1.68 1.23 1.34 

Net charge-offs to loans & leases (%) ......... 2002 0.98 1.49 0.20 7.09 0.62 0.16 1.10 0.67 0.24 0.84 

.............................................. 2000 0.50 0.49 0.13 3.99 0.37 0.12 0.34 0.36 0.16 0.47 

.............................................. 1998 

Noncurrent assets plus 

0.55 0.48 0.10 4.78 0.34 0.18 0.42 0.39 0.19 0.43 

OREO to assets (%) ................................ 2002 0.92 1.14 0.91 1.73 0.92 0.68 1.24 0.34 0.67 0.70 

.............................................. 2000 0.63 0.64 0.78 1.46 0.64 0.47 0.99 0.30 0.55 0.46 

.............................................. 1998 0.71 0.63 0.77 1.79 0.71 0.74 1.01 0.37 0.61 0.57 

Equity capital ratio (%) ................................ 2002 9.22 7.57 10.56 14.85 9.62 8.83 8.41 16.30 10.25 8.02 

.............................................. 2000 8.37 6.64 10.22 13.20 8.48 7.94 7.76 14.63 9.91 8.17 

.............................................. 1998 8.48 6.47 10.85 14.16 8.96 8.52 7.95 14.23 10.11 7.95 

* See page 8 for explanations. 

FIRST QUARTER 2003 6 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE III-A. First Quarter 2003, All FDIC-Insured Institutions 

FIRST QUARTER 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

9,314 4,614 4,135 456 109 1,201 1,242 2,047 2,159 1,893 772 

Commercial banks .............................................. 7,864 4,114 3,337 330 83 626 1,081 1,676 2,046 1,752 683 

Savings institutions ............................................. 1,450 500 798 126 26 575 161 371 113 141 89 

Total assets (in billions) ......................................... $8,606.0 $235.8 $1,138.2 $1,292.0 $5,940.1 $2,938.9 $1,748.9 $1,608.1 $437.1 $591.7 $1,281.3 

Commercial banks .............................................. 7,196.4 209.9 882.0 940.9 5,163.5 2,440.2 1,627.2 1,474.0 391.5 500.3 763.2 

Savings institutions ............................................. 1,409.7 25.9 256.2 351.1 776.6 498.7 121.8 134.2 45.5 91.4 518.1 

Total deposits (in billions) ...................................... 5,678.6 198.1 916.2 866.6 3,697.7 1,854.2 1,205.8 1,048.0 297.0 448.3 825.4 

Commercial banks .............................................. 4,778.5 177.5 720.8 638.5 3,241.7 1,516.4 1,120.2 948.1 268.9 394.9 530.0 

Savings institutions ............................................. 900.2 20.7 195.4 228.2 455.9 337.8 85.7 99.9 28.1 53.4 295.4 

Net income (in millions) ......................................... 29,377 595 3,361 4,236 21,184 9,176 5,897 5,425 1,689 2,039 5,151 

Commercial banks .............................................. 24,942 535 2,784 3,100 18,524 7,705 5,538 5,070 1,591 1,670 3,368 

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

Performance Ratios (annualized, %) 

4,434 61 577 1,136 2,660 1,471 359 355 97 368 1,783 

Yield on earning assets ......................................... 5.59 6.08 6.02 5.64 5.46 5.43 5.54 5.44 6.44 5.74 5.81 

Cost of funding earning assets .............................. 1.79 2.00 2.01 1.89 1.71 1.92 1.74 1.84 1.83 1.66 1.56 

Net interest margin ............................................. 3.80 4.08 4.01 3.75 3.75 3.51 3.80 3.60 4.61 4.08 4.25 

Noninterest income to assets ................................ 2.25 1.32 1.31 1.79 2.57 2.65 2.11 1.96 2.55 1.86 1.99 

Noninterest expense to assets .............................. 3.16 3.60 3.17 3.07 3.16 3.28 3.14 2.87 3.83 3.52 2.88 

Loan and lease loss provision to assets ................ 0.48 0.21 0.25 0.36 0.57 0.57 0.33 0.47 0.80 0.28 0.50 

Net operating income to assets ............................. 1.26 0.95 1.12 1.17 1.32 1.16 1.26 1.22 1.46 1.28 1.50 

Pretax return on assets ......................................... 2.07 1.34 1.68 1.99 2.19 1.92 2.03 2.01 2.19 1.87 2.58 

Return on assets ................................................... 1.38 1.02 1.19 1.33 1.44 1.26 1.36 1.36 1.54 1.39 1.64 

Return on equity .................................................... 15.00 8.95 11.93 13.23 16.42 14.22 14.68 15.87 14.65 14.49 16.42 

Net charge-offs to loans and leases ...................... 0.81 0.19 0.27 0.49 1.03 1.25 0.62 0.63 1.04 0.38 0.65 

Loan and lease loss provision to net charge-offs .. 99.29 183.12 142.74 118.81 94.17 91.89 84.96 112.85 112.01 122.19 111.79 

Efficiency ratio ....................................................... 55.92 70.99 63.11 58.48 53.69 57.25 57.63 54.23 55.60 63.07 49.57 

% of unprofitable institutions ................................. 5.78 9.08 2.56 2.19 2.75 7.16 7.97 4.69 3.84 5.92 8.03 

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

Condition Ratios (%) 

60.97 56.24 65.39 66.89 68.81 63.11 65.94 62.77 55.63 56.05 71.89 

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

Loss allowance to: 

86.66 91.65 91.86 90.58 84.61 84.45 85.10 88.51 90.25 89.96 88.77 

Loans and leases ............................................... 1.67 1.41 1.37 1.48 1.79 2.06 1.52 1.63 1.82 1.38 1.35 

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

Noncurrent assets plus 

127.76 114.11 140.69 147.60 123.30 117.51 136.52 120.54 174.70 121.83 143.89 

other real estate owned to assets ...................... 0.86 0.92 0.76 0.69 0.92 0.94 0.76 0.98 0.82 0.83 0.72 

Equity capital ratio ................................................. 9.20 11.36 10.02 10.09 8.76 8.88 9.21 8.61 10.61 9.60 9.97 

Core capital (leverage) ratio .................................. 7.88 10.96 9.45 8.93 7.23 7.59 7.61 7.85 9.59 8.53 8.09 

Tier 1 risk-based capital ratio ................................ 10.60 16.82 13.78 13.09 9.37 10.72 9.54 9.82 13.27 12.56 11.22 

Total risk-based capital ratio ................................. 13.20 17.94 14.96 14.76 12.44 13.56 12.25 12.73 14.66 14.09 13.59 

Net loans and leases to deposits .......................... 88.76 71.16 78.50 89.49 92.07 77.21 87.81 97.44 99.43 78.70 106.66 

Net loans to total assets ........................................ 58.56 59.80 63.19 60.03 57.31 48.71 60.54 63.50 67.56 59.62 68.71 

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

Structural Changes 

58.40 84.04 80.38 66.30 51.45 46.84 64.42 61.09 66.87 75.50 62.52 

New Charters ..................................................... 26 26 0 0 0 2 12 3 3 2 4 

Institutions absorbed by mergers ....................... 65 29 33 3 0 13 7 14 11 8 12 

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

PRIOR FIRST QUARTERS 

(The way it was...) 

1 0 1 0 0 0 0 0 0 0 1 

Number of institutions .................................. 2002 9,521 5,000 3,982 437 102 1,238 1,255 2,097 2,202 1,940 789 

.............................................. 2000 10,152 5,745 3,881 431 95 1,310 1,322 2,268 2,322 2,087 843 

.............................................. 1998 10,780 6,485 3,780 432 83 1,389 1,378 2,428 2,439 2,273 873 

Total assets (in billions) ............................... 2002 $7,822.5 $250.0 $1,068.7 $1,261.3 $5,242.6 $2,651.7 $1,571.3 $1,467.9 $415.6 $545.6 $1,170.6 

.............................................. 2000 7,003.3 271.4 1,005.7 1,222.1 4,504.2 2,401.2 1,513.9 1,172.0 439.1 559.6 917.6 

.............................................. 1998 6,152.7 302.8 985.3 1,236.2 3,628.4 2,244.4 961.5 987.7 371.2 584.9 1,003.1 

Return on assets (%) .................................. 2002 1.29 0.98 0.99 1.42 1.34 1.16 1.35 1.24 1.54 1.36 1.48 

.............................................. 2000 1.29 1.07 1.20 1.42 1.29 1.34 1.34 1.17 1.36 1.09 1.35 

.............................................. 1998 1.22 1.14 1.27 1.55 1.09 1.17 1.11 1.26 1.43 1.29 1.27 

Net charge-offs to loans & leases (%) ......... 2002 0.98 0.22 0.29 0.68 1.24 1.54 0.64 0.78 1.21 0.39 0.78 

.............................................. 2000 0.50 0.16 0.26 0.58 0.56 0.64 0.39 0.33 0.76 0.31 0.59 

.............................................. 1998 

Noncurrent assets plus 

0.55 0.16 0.23 0.88 0.55 0.78 0.38 0.34 0.67 0.33 0.58 

OREO to assets (%)................................ 2002 0.92 0.85 0.73 0.75 1.00 0.98 0.83 1.04 0.83 0.84 0.80 

.............................................. 2000 0.63 0.68 0.57 0.64 0.64 0.70 0.61 0.59 0.59 0.63 0.58 

.............................................. 1998 0.71 0.76 0.69 0.84 0.67 0.81 0.59 0.61 0.64 0.62 0.79 

Equity capital ratio (%) ................................ 2002 9.22 11.03 9.86 9.75 8.88 8.96 9.35 8.82 9.95 9.56 9.75 

.............................................. 2000 8.37 11.02 9.55 8.83 7.83 8.19 8.56 8.03 8.86 8.49 8.70 

.............................................. 1998 8.48 11.03 9.84 9.42 7.57 7.80 8.73 8.71 9.14 8.82 9.09 

* See page 9 for explanations. 

ALL FDIC-INSURED INSTITUTIONS 7 FIRST QUARTER 2003 
FDIC Quarterly Banking Profile 

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

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

All Insured 

Institutions 

Asset Concentration Groups* 

International 

Banks 

Agricultural 

Banks 

Credit Card 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

9,354 6 1,823 39 4,071 1,107 196 488 1,525 99 

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

Savings institutions ............................................. 1,467 0 4 1 332 850 46 66 149 19 

Total assets (in billions) ......................................... $8,436.0 $1,323.9 $123.8 $248.9 $2,964.0 $1,342.1 $166.5 $60.2 $197.3 $2,009.4 

Commercial banks .............................................. 7,076.6 1,323.9 123.5 248.2 2,763.1 377.5 119.0 46.1 166.5 1,908.9 

Savings institutions ............................................. 1,359.4 0.0 0.3 0.8 201.0 964.6 47.5 14.1 30.8 100.5 

Total deposits (in billions) ...................................... 5,568.5 753.6 102.6 82.7 2,151.0 829.2 82.8 43.7 162.2 1,360.7 

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

Savings institutions ............................................. 879.0 0.0 0.2 0.4 138.0 609.3 30.0 10.2 24.3 66.4 

Net income (in millions) ......................................... 105,174 10,522 1,483 8,583 36,627 16,946 2,119 749 2,175 25,972 

Commercial banks .............................................. 89,926 10,522 1,480 8,551 34,119 5,841 1,718 728 1,952 25,017 

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

Performance Ratios (%) 

15,248 0 3 32 2,507 11,105 401 22 224 955 

Yield on earning assets ......................................... 6.15 5.80 6.70 11.97 6.31 5.86 7.28 5.85 6.55 5.43 

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

Net interest margin ............................................. 3.96 3.40 4.17 9.12 4.19 3.39 4.69 3.40 4.11 3.64 

Noninterest income to assets ................................ 2.27 3.15 0.65 12.29 1.65 1.09 2.40 6.44 0.92 2.22 

Noninterest expense to assets .............................. 3.26 3.71 2.73 9.49 3.07 2.36 3.59 7.70 2.96 2.97 

Loan and lease loss provision to assets ................ 0.64 0.93 0.24 4.97 0.53 0.17 1.19 0.28 0.26 0.43 

Net operating income to assets ............................. 1.20 0.76 1.21 3.58 1.24 1.05 1.20 0.95 1.12 1.26 

Pretax return on assets ......................................... 1.95 1.33 1.55 5.66 1.89 2.04 2.13 1.72 1.51 1.98 

Return on assets ................................................... 1.30 0.85 1.24 3.60 1.30 1.32 1.35 1.09 1.14 1.33 

Return on equity .................................................... 14.14 11.09 11.56 24.55 13.85 14.70 18.41 6.32 10.82 14.63 

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

Loan and lease loss provision to net charge-offs .. 109.53 114.04 133.49 98.58 118.01 127.18 142.83 56.57 128.14 98.95 

Efficiency ratio ....................................................... 56.06 62.38 60.50 45.34 55.57 56.05 53.34 80.46 62.56 55.20 

% of unprofitable institutions ................................. 6.52 16.67 2.80 7.69 8.70 4.70 5.10 12.91 4.85 2.02 

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

Condition Ratios (%) 

73.74 50.00 67.91 74.36 76.37 81.30 79.59 54.30 73.70 74.75 

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

Loss allowance to: 

86.41 79.50 91.59 86.42 89.04 90.22 91.18 87.65 91.68 83.27 

Loans and leases ............................................... 1.69 2.45 1.49 4.92 1.60 0.77 1.59 1.73 1.37 1.66 

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

Noncurrent assets plus

123.77 89.81 125.04 227.90 139.76 80.43 108.46 108.87 135.64 129.60 

other real estate owned to assets ...................... 0.90 1.19 0.85 1.79 0.87 0.71 1.28 0.59 0.70 0.75 

Equity capital ratio ................................................. 9.20 7.52 10.76 15.16 9.38 9.08 7.35 17.18 10.62 9.07 

Core capital (leverage) ratio .................................. 7.87 6.69 10.10 14.86 8.11 7.54 7.41 15.09 9.82 7.13 

Tier 1 risk-based capital ratio ................................ 10.42 9.37 14.71 12.33 9.83 12.78 10.34 33.33 16.15 9.32 

Total risk-based capital ratio ................................. 13.00 12.81 15.84 14.54 12.12 14.40 13.22 34.50 17.33 12.57 

Net loans and leases to deposits .......................... 89.26 71.39 72.88 227.66 91.70 105.35 158.24 35.90 68.21 78.34 

Net loans to total assets ........................................ 58.92 40.64 60.44 75.58 66.55 65.09 78.73 26.09 56.07 53.05 

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

Structural Changes 

58.21 26.32 82.93 29.99 70.20 60.75 49.76 71.64 82.03 59.77 

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

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

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

PRIOR FULL YEARS 

(The way it was...) 

11 0 1 1 7 1 0 0 1 0 

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

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

.............................................. 1997 10,923 11 2,377 74 3,437 1,615 338 611 2,365 95 

Total assets (in billions) ............................... 2001 $7,868.5 $1,176.3 $120.1 $335.2 $3,538.3 $1,178.7 $140.8 $49.7 $202.7 $1,126.7 

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

.............................................. 1997 6,044.7 1,383.2 120.4 216.9 2,019.1 966.9 117.8 65.0 279.5 876.1 

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

.............................................. 1999 1.25 0.93 1.18 3.52 1.27 1.03 1.36 1.67 1.27 1.26 

.............................................. 1997 1.18 0.93 1.25 2.06 1.31 0.96 1.27 1.66 1.23 1.23 

Net charge-offs to loans & leases (%) ........ 2001 0.83 0.88 0.36 4.52 0.68 0.19 1.39 0.48 0.33 0.75 

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

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

Noncurrent assets plus 

0.57 0.25 0.23 4.72 0.38 0.18 0.97 0.30 0.29 0.56 

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

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

.............................................. 1997 0.71 0.56 0.68 1.83 0.74 0.76 1.01 0.37 0.58 0.58 

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

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

.............................................. 1997 8.39 6.45 10.72 12.69 8.78 8.47 8.96 14.11 10.16 8.04 

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

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

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

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

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

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

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

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

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

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

activity with no identified asset concentrations. 

FIRST QUARTER 2003 8 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

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

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than $100 

Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

9,354 4,681 4,117 450 106 1,212 1,237 2,055 2,167 1,901 782 

Commercial banks .............................................. 7,887 4,169 3,313 325 80 626 1,076 1,681 2,052 1,761 691 

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

Total assets (in billions) ......................................... $8,436.0 $237.9 $1,124.8 $1,278.9 $5,794.4 $2,893.1 $1,711.1 $1,571.9 $440.1 $581.5 $1,238.3 

Commercial banks .............................................. 7,076.6 211.4 869.3 937.3 5,058.6 2,405.7 1,591.2 1,440.7 395.3 493.2 750.5 

Savings institutions ............................................. 1,359.4 26.5 255.5 341.6 735.9 487.4 119.9 131.2 44.8 88.3 487.8 

Total deposits (in billions) ...................................... 5,568.5 199.5 901.1 862.5 3,605.4 1,824.7 1,175.5 1,036.3 292.6 438.3 801.2 

Commercial banks .............................................. 4,689.5 178.4 707.0 639.6 3,164.5 1,494.1 1,093.0 938.2 265.3 386.5 512.4 

Savings institutions ............................................. 879.0 21.1 194.1 222.9 440.9 330.5 82.5 98.1 27.3 51.8 288.8 

Net income (in millions) ......................................... 105,174 2,270 12,541 17,485 72,878 30,536 22,060 19,613 6,674 7,826 18,467 

Commercial banks .............................................. 89,926 2,044 10,397 13,535 63,950 25,085 21,043 18,613 6,249 6,478 12,458 

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

Performance Ratios (%) 

15,248 226 2,144 3,950 8,928 5,451 1,017 999 424 1,348 6,009 

Yield on earning assets ......................................... 6.15 6.65 6.66 6.30 5.99 6.04 6.11 6.03 7.12 6.37 6.15 

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

Net interest margin ............................................. 3.96 4.21 4.20 4.00 3.89 3.68 3.99 3.78 4.90 4.35 4.27 

Noninterest income to assets ................................ 2.27 1.27 1.39 2.00 2.54 2.74 2.13 1.89 2.63 1.85 1.91 

Noninterest expense to assets .............................. 3.26 3.59 3.34 3.20 3.25 3.45 3.23 2.97 3.89 3.59 2.88 

Loan and lease loss provision to assets ................ 0.64 0.29 0.35 0.46 0.75 0.82 0.49 0.54 0.95 0.35 0.57 

Net operating income to assets ............................. 1.20 0.95 1.11 1.32 1.21 1.03 1.25 1.17 1.53 1.33 1.41 

Pretax return on assets ......................................... 1.95 1.31 1.64 2.15 1.99 1.69 1.94 1.91 2.31 1.94 2.49 

Return on assets ................................................... 1.30 1.00 1.16 1.44 1.31 1.11 1.34 1.29 1.58 1.41 1.58 

Return on equity .................................................... 14.14 8.77 11.53 14.47 14.93 12.50 14.23 14.88 15.74 14.69 15.80 

Net charge-offs to loans and leases ...................... 0.97 0.32 0.41 0.69 1.18 1.45 0.71 0.77 1.19 0.44 0.81 

Loan and lease loss provision to net charge-offs .. 109.53 145.71 131.82 108.13 107.64 108.75 111.27 105.87 115.72 130.17 106.41 

Efficiency ratio ....................................................... 56.05 69.74 63.15 55.84 54.35 57.83 57.01 55.14 53.66 61.44 49.95 

% of unprofitable institutions ................................. 6.52 10.17 2.87 2.89 2.83 8.25 10.19 5.45 3.55 5.79 10.87 

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

Condition Ratios(%) 

73.74 67.93 79.52 80.00 79.25 76.98 77.77 76.50 69.87 70.59 73.53 

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

Loss Allowance to: 

86.41 91.60 91.73 90.34 84.30 84.53 84.58 88.38 90.39 89.65 87.91 

Loans and leases ............................................... 1.69 1.38 1.35 1.54 1.81 2.06 1.55 1.61 1.73 1.37 1.42 

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

Noncurrent assets plus 

123.77 123.10 143.96 152.71 116.80 109.84 134.87 119.53 164.37 124.35 144.71 

other real estate owned to assets ...................... 0.90 0.85 0.74 0.69 0.98 1.01 0.78 1.00 0.82 0.81 0.74 

Equity capital ratio ................................................. 9.20 11.29 10.06 10.06 8.76 8.85 9.37 8.59 10.33 9.60 9.98 

Core capital (leverage) ratio .................................. 7.87 10.83 9.40 8.92 7.20 7.63 7.63 7.69 9.43 8.44 8.15 

Tier 1 risk-based capital ratio ................................ 10.42 16.58 13.78 12.96 9.14 10.48 9.54 9.57 12.82 12.36 11.12 

Total risk-based capital ratio ................................. 13.00 17.70 14.95 14.69 12.17 13.26 12.24 12.49 14.19 13.89 13.42 

Net loans and leases to deposits .......................... 89.26 72.18 79.50 89.74 92.53 78.42 88.46 98.70 101.75 79.62 103.61 

Net loans to total assets ........................................ 58.92 60.53 63.69 60.52 57.57 49.46 60.77 65.07 67.66 60.01 67.03 

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

Structural Changes 

58.21 83.87 79.99 66.61 51.07 46.74 64.20 61.40 65.18 75.13 62.26 

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

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

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

PRIOR FULL YEARS 

(The way it was...) 

11 8 2 1 0 1 4 3 0 2 1 

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

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

.............................................. 1997 10,923 6,618 3,780 441 84 1,402 1,402 2,460 2,463 2,321 875 

Total assets (in billions) ........................... 2001 $7,868.5 $251.1 $1,071.2 $1,272.3 $5,273.9 $2,703.4 $1,586.7 $1,491.9 $406.8 $543.3 $1,136.4 

.............................................. 1999 6,883.7 276.2 999.6 1,277.4 4,330.5 2,393.6 1,480.7 1,140.2 431.0 560.3 877.8 

.............................................. 1997 6,044.7 307.8 978.2 1,253.7 3,505.1 2,240.4 896.5 979.0 368.6 571.5 988.8 

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

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

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

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

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

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

Noncurrent assets plus 

0.57 0.25 0.30 0.91 0.54 0.66 0.48 0.45 0.75 0.38 0.64 

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

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

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

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

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

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

* 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 

Altanta - 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 FIRST QUARTER 2003 
FDIC Quarterly Banking Profile 

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

March 31, 2003 

Percent of Loans 30-89 Days Past Due 

All Insured 

Institutions 

Asset Concentration Groups* 

International 

Banks 

Agricultural 

Banks 

Credit Card 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All O ther 

>$1 Billion 

All loans secured by real estate ...................................... 1.01 1.57 1.80 0.89 0.93 1.00 0.87 1.29 1.60 0.99 

Construction and development .................................... 1.10 3.54 2.27 0.00 1.13 1.11 1.73 1.05 1.59 0.56 

Commercial real estate ................................................ 0.78 0.91 1.56 0.14 0.80 0.61 0.62 0.91 1.44 0.59 

Multifamily residential real estate ................................. 0.38 1.12 0.97 0.30 0.46 0.19 0.15 0.39 0.86 0.35 

Home equity loans ....................................................... 0.45 0.64 0.59 0.69 0.45 0.24 0.41 0.59 0.62 0.66 

Other 1-4 Family residential ......................................... 1.22 1.73 1.95 1.97 1.20 1.13 1.01 1.64 1.74 1.26 

Commercial and industrial loans ..................................... 0.89 0.69 2.21 2.14 1.00 0.98 0.90 1.68 1.81 0.62 

Loans to individuals ......................................................... 1.90 1.84 2.35 2.47 1.68 1.40 1.94 1.82 2.17 1.58 

Credit card loans .......................................................... 2.32 2.11 2.50 2.52 2.26 1.49 2.06 1.45 2.22 1.64 

Other loans to individuals ............................................. 1.67 1.63 2.34 1.45 1.61 1.39 1.93 1.86 2.17 1.57 

All other loans and leases (including farm) ..................... 0.63 0.58 2.16 0.03 0.89 0.63 0.95 0.93 1.26 0.20 

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

Percent of Loans Noncurrent** 

1.08 1.14 2.00 2.27 1.01 1.01 1.20 1.40 1.69 0.84 

All real estate loans ......................................................... 0.89 1.61 1.21 0.53 0.85 0.90 0.51 1.63 0.95 0.90 

Construction and development .................................... 1.03 3.10 1.52 0.01 0.91 1.52 1.13 3.25 1.17 1.18 

Commercial real estate ................................................ 1.04 1.73 1.44 0.02 0.92 1.08 0.79 3.12 1.27 1.43 

Multifamily residential real estate ................................. 0.31 1.25 0.60 0.00 0.33 0.17 0.64 0.49 1.04 0.40 

Home equity loans ....................................................... 0.26 0.19 0.33 0.32 0.26 0.14 0.28 0.17 0.26 0.37 

Other 1-4 Family residential ......................................... 0.91 1.38 0.93 1.59 0.94 0.97 0.45 0.89 0.81 0.75 

Commercial and industrial loans ..................................... 2.76 4.99 2.06 1.75 2.09 1.72 2.11 2.89 1.86 3.07 

Loans to individuals ......................................................... 1.35 2.09 0.86 2.19 0.72 0.52 1.25 0.72 0.86 0.66 

Credit card loans .......................................................... 2.06 1.89 1.94 2.26 1.87 1.23 1.71 0.85 2.08 1.43 

Other loans to individuals ............................................. 0.96 2.26 0.82 0.72 0.58 0.45 1.19 0.71 0.79 0.57 

All other loans and leases (including farm) ..................... 0.97 1.03 1.54 0.00 1.15 0.71 1.03 0.99 1.12 0.73 

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

Percent of Loans Charged-off (net, YTD) 

1.31 2.51 1.39 1.99 1.14 0.91 0.92 1.62 1.05 1.37 

All real estate loans ......................................................... 0.10 0.15 0.03 0.15 0.10 0.07 0.16 0.07 0.07 0.14 

Commercial real estate ................................................ 0.09 0.00 0.05 -0.02 0.10 0.21 -0.01 0.04 0.08 0.05 

Multifamily residential real estate ................................. 0.02 0.00 0.07 0.00 0.01 0.01 0.36 0.00 0.01 0.01 

Home equity loans ....................................................... 0.17 0.10 0.10 0.11 0.14 0.07 0.35 -0.04 0.06 0.29 

Other 1-4 Family residential ......................................... 0.10 0.08 0.04 0.45 0.12 0.06 0.14 0.06 0.06 0.15 

Commercial and industrial loans .................................. 1.39 1.75 0.32 5.91 1.34 0.95 2.05 1.30 0.56 1.21 

Loans to individuals ......................................................... 3.02 3.88 0.52 6.08 1.57 1.42 1.78 0.76 0.85 1.62 

Credit card loans ............................................................. 5.75 4.71 3.51 6.21 5.32 3.24 9.13 3.08 4.12 4.72 

Other loans to individuals ............................................. 1.44 3.15 0.43 2.98 1.12 1.23 0.85 0.53 0.66 1.24 

All other loans and leases (including farm) .................. 0.46 0.42 0.16 0.00 0.54 0.51 1.08 0.63 0.32 0.42 

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

Loans Outstanding (in billions) 

0.81 1.68 0.15 5.57 0.55 0.19 0.90 0.36 0.25 0.61 

All real estate loans ......................................................... $2,925.6 $105.3 $37.8 $9.8 $1,242.3 $819.2 $161.3 $10.8 $78.5 $460.6 

Construction and development ........................................ 250.6 1.6 1.7 0.2 179.9 21.7 7.0 0.7 4.3 33.5 

Commercial real estate ................................................ 641.5 5.6 8.5 0.3 440.7 49.0 21.5 3.0 18.1 94.9 

Multifamily residential real estate ................................. 138.0 1.0 0.6 0.1 79.2 40.5 2.1 0.4 1.6 12.6 

Home equity loans ....................................................... 276.1 7.9 0.5 7.5 122.8 56.0 29.4 0.5 3.0 48.5 

Other 1-4 Family residential ......................................... 1,545.9 64.3 12.9 1.8 401.4 650.9 100.4 6.0 47.2 261.1 

Commercial and industrial loans .................................. 949.4 149.3 10.9 7.6 469.3 39.8 31.7 2.0 12.7 226.0 

Loans to individuals ......................................................... 754.2 148.5 6.6 161.0 183.4 46.4 87.5 2.4 16.9 101.6 

Credit card loans ............................................................. 265.9 66.9 0.2 153.7 19.4 4.2 9.3 0.3 0.9 11.1 

Other loans to individuals ............................................. 488.3 81.6 6.4 7.4 164.0 42.2 78.2 2.2 16.0 90.4 

All other loans and leases (including farm) .................. 500.4 146.6 18.9 7.6 144.7 22.7 10.5 0.8 6.1 142.4 

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

Memo: Other Real Estate Owned (in millions) 

5,129.6 549.7 74.2 186.1 2,039.7 928.1 291.0 16.1 114.2 930.5 

All other real estate owned .............................................. 5,435.9 297.3 146.1 12.9 2,575.3 1,135.6 252.7 89.7 234.3 692.0 

Construction and development .................................... 637.2 0.0 12.3 0.0 409.0 152.0 1.1 2.4 21.3 39.3 

Commercial real estate ................................................ 1,930.3 92.0 55.9 1.7 1,145.7 116.4 18.6 81.0 91.9 327.2 

Multifamily residential real estate ................................. 123.9 6.0 3.8 0.0 95.6 5.7 1.1 0.0 3.8 7.9 

1-4 Family residential ................................................... 2,556.4 124.3 37.8 11.2 879.6 861.9 224.4 15.0 105.9 296.3 

Farmland ...................................................................... 102.9 0.0 36.5 0.0 41.2 1.4 7.7 0.9 11.1 4.2 

* See page 8 for explanations.
 

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

FIRST QUARTER 2003 10 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

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

March 31, 2003 

Percent of Loans 30-89 Days Past Due 

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

All loans secured by real estate ............................ 1.01 1.64 1.11 0.84 1.00 0.97 0.86 1.30 1.04 1.22 0.85 

Construction and development ........................... 1.10 1.42 1.16 1.08 1.05 1.02 0.73 1.42 1.08 1.23 1.28 

Commercial real estate ...................................... 0.78 1.32 0.87 0.85 0.63 0.74 0.67 0.97 1.02 0.91 0.54 

Multifamily residential real estate ....................... 0.38 0.81 0.49 0.36 0.34 0.21 0.41 0.76 0.58 1.08 0.16 

Home equity loans .............................................. 0.45 0.58 0.51 0.37 0.46 0.43 0.47 0.53 0.51 0.53 0.27 

Other 1-4 Family residential ............................... 1.22 1.95 1.40 0.88 1.23 1.14 1.09 1.71 1.01 1.53 1.02 

Commercial and industrial loans ........................... 0.89 1.97 1.46 1.30 0.70 0.73 0.69 1.01 1.53 1.21 1.08 

Loans to individuals ............................................... 1.90 2.53 2.03 1.83 1.88 1.97 1.93 1.62 2.09 1.70 1.93 

Credit card loans ................................................ 2.32 2.08 3.87 2.75 2.23 2.27 3.79 1.96 2.27 1.01 2.22 

Other loans to individuals ................................... 1.67 2.54 1.76 1.56 1.64 1.74 1.59 1.56 1.77 1.81 1.63 

All other loans and leases (including farm) ........... 0.63 2.06 1.34 0.77 0.52 0.51 0.29 0.82 1.54 1.18 0.66 

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

Percent of Loans Noncurrent** 

1.08 1.83 1.25 1.02 1.03 1.06 0.90 1.22 1.39 1.28 0.99 

All real estate loans ............................................... 0.89 1.07 0.85 0.83 0.91 0.89 0.70 1.23 0.66 1.08 0.74 

Construction and development ........................... 1.03 1.27 1.05 1.07 0.99 1.00 0.76 1.34 0.74 0.98 1.27 

Commercial real estate ...................................... 1.04 1.14 0.96 1.02 1.09 0.92 0.96 1.33 0.86 1.23 0.86 

Multifamily residential real estate ....................... 0.31 0.85 0.40 0.45 0.21 0.21 0.29 0.46 0.45 1.60 0.12 

Home equity loans .............................................. 0.26 0.26 0.21 0.23 0.27 0.21 0.23 0.37 0.27 0.32 0.13 

Other 1-4 Family residential ............................... 0.91 0.98 0.79 0.77 0.96 0.88 0.66 1.47 0.52 1.04 0.79 

Commercial and industrial loans ........................... 2.76 1.86 1.52 1.90 3.12 3.84 2.58 2.34 1.48 1.58 2.03 

Loans to individuals ............................................... 1.35 0.99 0.94 0.93 1.47 1.89 0.94 0.67 1.58 0.67 1.19 

Credit card loans ................................................ 2.06 1.26 3.11 2.16 2.02 2.16 2.69 1.54 2.02 0.87 1.94 

Other loans to individuals ................................... 0.96 0.98 0.62 0.57 1.09 1.68 0.63 0.52 0.84 0.64 0.39 

All other loans and leases (including farm) ........... 0.97 1.51 1.31 0.85 0.94 1.07 0.95 0.75 1.24 1.43 0.69 

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

Percent of Loans Charged-off (net, YTD) 

1.31 1.23 0.97 1.01 1.45 1.75 1.11 1.35 1.04 1.13 0.94 

All real estate loans ............................................... 0.10 0.04 0.06 0.08 0.12 0.07 0.08 0.22 0.06 0.13 0.05 

Construction and development ........................... 0.10 0.08 0.07 0.10 0.12 0.02 0.08 0.11 0.16 0.17 0.11 

Commercial real estate ...................................... 0.09 0.05 0.06 0.10 0.11 0.09 0.05 0.19 0.02 0.07 0.08 

Multifamily residential real estate ....................... 0.02 0.03 0.03 0.01 0.02 0.01 0.01 0.02 0.00 0.19 0.00 

Home equity loans .............................................. 0.17 0.01 0.04 0.12 0.20 0.04 0.17 0.33 0.15 0.17 0.06 

Other 1-4 Family residential ............................... 0.10 0.05 0.06 0.08 0.11 0.05 0.08 0.25 0.06 0.16 0.04 

Commercial and industrial loans ........................... 1.39 0.43 0.54 0.93 1.63 1.82 1.25 1.19 0.65 0.75 1.52 

Loans to individuals ............................................... 3.02 0.68 1.55 2.26 3.36 3.68 2.38 1.70 3.88 1.11 3.60 

Credit card loans ................................................ 5.75 3.12 7.02 6.19 5.68 5.86 8.97 4.67 5.65 2.47 5.10 

Other loans to individuals ................................... 1.44 0.62 0.74 1.10 1.67 1.89 1.18 1.19 0.58 0.87 1.90 

All other loans and leases (including farm) ........... 0.46 0.22 0.32 0.41 0.48 0.44 0.45 0.59 0.25 0.43 0.33 

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

Loans Outstanding (in billions) 

0.81 0.19 0.27 0.49 1.03 1.24 0.62 0.63 1.04 0.37 0.65 

All real estate loans ............................................... $2,925.6 $91.4 $534.4 $536.2 $1,763.6 $647.2 $642.9 $585.8 $160.2 $235.0 $654.5 

Construction and development ........................... 250.6 8.4 62.5 58.5 121.2 29.3 74.5 57.0 14.8 36.1 38.8 

Commercial real estate ...................................... 641.5 25.1 182.5 149.6 284.3 126.6 158.1 140.6 41.3 70.2 104.7 

Multifamily residential real estate ....................... 138.0 2.2 23.2 33.9 78.7 35.2 17.6 26.2 5.1 6.7 47.2 

Home equity loans .............................................. 276.1 2.9 28.1 34.9 210.3 59.2 67.8 79.3 8.1 15.4 46.4 

Other 1-4 Family residential ............................... 1,545.9 42.8 220.8 253.9 1,028.4 365.2 316.3 272.7 79.0 99.3 413.3 

Commercial and industrial loans ........................... 949.4 22.1 104.0 120.0 703.2 311.3 209.2 221.0 44.7 61.2 102.0 

Loans to individuals ............................................... 754.2 15.3 62.9 93.1 582.9 299.1 128.4 114.9 66.5 44.8 100.5 

Credit card loans ................................................ 265.9 0.4 8.1 20.8 236.6 129.5 19.6 16.6 41.8 6.4 51.9 

Other loans to individuals ................................... 488.3 14.9 54.9 72.2 346.3 169.6 108.8 98.3 24.7 38.4 48.6 

All other loans and leases (including farm) ........... 500.4 14.3 28.5 38.5 419.1 206.5 95.0 116.5 29.4 17.1 35.9 

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

Memo: Other Real Estate Owned (in millions) 

5,129.6 143.1 729.8 787.8 3,468.8 1,464.1 1,075.6 1,038.2 300.8 358.0 892.9 

All other real estate owned .................................... 5,435.9 373.1 1,497.3 948.1 2,617.4 768.3 1,225.0 1,325.4 446.1 839.6 831.5 

Construction and development ........................... 637.2 45.3 261.5 144.3 186.1 44.5 159.5 110.0 85.9 136.2 101.0 

Commercial real estate ...................................... 1,930.3 145.8 668.1 412.1 704.4 287.8 551.8 324.0 188.4 320.5 257.8 

Multifamily residential real estate ....................... 123.9 10.8 58.1 30.9 24.2 14.4 11.7 25.9 14.2 40.0 17.8 

1-4 Family residential.......................................... 2,556.4 142.8 473.4 354.6 1,585.5 329.7 490.8 854.4 137.5 310.4 433.6 

Farmland ............................................................ 102.9 28.9 46.2 6.6 21.2 4.8 11.7 11.7 21.7 33.2 19.8 

* See page 9 for explanations.
 

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

ALL FDIC-INSURED INSTITUTIONS 11 FIRST QUARTER 2003 
 

 

FDIC Quarterly Banking Profile 

INSURANCE FUND INDICATORS FIRST QUARTER 2003 

• BIF Reserve Ratio Rises 1 Basis Point To 1.28 Percent 

• SAIF Reserve Ratio Remains Unchanged 

• One BIF-Member Institution Fails During First Quarter 

Total deposits of the nation's 9,314 insured institutions increased during the first three months of

2003. Deposits held in domestic offices grew by 2.3

percent ($115.4 billion), while foreign office deposits

shrank by 0.8 percent ($5.2 billion). Much of the

quarter's domestic deposit growth occurred in

accounts greater than $100 thousand. During this

period deposits insured by the FDIC increased by 0.3

percent ($11.6 billion) to $3.4 trillion. This was the

smallest rise since the second quarter of 2002, when

total insured deposits increased by 0.1 percent ($2.3

billion). The combined balances of the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF) increased by 1.1 percent ($491

million) during the quarter, ending at $44.3 billion

(unaudited). The combined BIF and SAIF reserve

ratio (fund balance as a percent of insured deposits)

for all insured institutions equaled 1.30 percent on

March 31, 2003, up from 1.29 percent at the end of

2002.

Deposits insured by the BIF rose 0.1 percent ($3.3

billion) during the first quarter of 2003, after a 4.9

percent rise for all of 2002. The first­quarter

increase was the smallest since the second quarter of

2002 when BIF insured deposits shrank by 0.2 percent. 

The Bank Insurance Fund grew by 1.0 percent ($332

million) during the first three months of 2003, ending the quarter with a balance of $32.4 billion

(unaudited). Because the growth of the BIF more

than out­weighed the growth of BIF­insured deposits,

Changes In Insurance Fund Balances 

the BIF reserve ratio rose from 1.27 percent on

December 31, 2002 to 1.28 percent on March 31,

2003. Nearly one­third ($103 million) of the firstquarter increase to the BIF was attributable to 

unrealized gains on securities available for sale.

From March 31, 2002 to March 31, 2003, higher

unrealized gains on securities added $647 million to

the BIF. If the unrealized gains on securities from

the previous twelve months were excluded, on

March 31, 2002 the BIF reserve ratio would have

been 1.25 percent

Deposits insured by the SAIF grew 1.0 percent in

the first quarter of 2003, following a 2.6 percent rise

in the fourth quarter. The reserve ratio of the 

Savings Association Insurance Fund (SAIF) was 

1.37 percent at the end of the first quarter 2003,

unchanged from three months earlier. The balance

of the SAIF was $11.9 billion (unaudited) on 

March 31, up $159 million during the quarter.

Unrealized gains on securities available for sale contributed $33 million to SAIF during the first quarter

of 2003 and $215 million over the past 12 months.

If the 12 months of unrealized gains on securities

were excluded then the SAIF reserve ratio would fall

approximately two basis points. 

Only one FDIC­insured institution failed during the

first quarter of 2003, a BIF­member commercial bank

with assets of $1.1 billion. The loss to the BIF is

estimated to be $134.5 million. There were no failures of SAIF­member institutions during first quarter.

(dollar figures in millions) 

Mar. 03 

Bank Insurance Fund 

Dec. 02 Sep. 02 Jun. 02 Mar. 02 

Savings Association Insurance Fund 

Mar. 03 Dec. 02 Sep. 02 Jun. 02 Mar. 02 

Beginning Fund Balance $32,050 $31,383 $31,187 $30,697 $30,439 $11,747 $11,586 $11,323 $11,049 $10,935 

Unrealized Gain (Loss) on 

Available-for-Sale Securities 

Provision for Insurance Losses 

All Other Income, Net of Expenses 

Total Fund Balance Change 

103 

-6 

223 

332 

-72 

-497 

242 

667 

433 

447 

210 

196 

183 

-19 

288 

490 

22 

-18 

218 

258 

33 

-21 

105 

159 

-26 

-70 

117 

161 

147 

-4 

112 

263 

61 

-79 

134 

274 

10 

-3 

101 

114 

Ending Fund Balance $32,382 $32,050 $31,383 $31,187 $30,697 $11,906 $11,747 $11,586 $11,323 $11,049 

FIRST QUARTER 2003 12 ALL FDIC-INSURED INSTITUTIONS 
 

 

 

 

FDIC Quarterly Banking Profile 

TABLE I-B. Selected Insurance Fund Indicators* 

(dollar figures in millions) Preliminary 

1st Quarter 4th Quarter 1st Quarter %Change 

2003 2002 2002 02:1-03:1 

Bank Insurance Fund 

Reserve ratio (%)..................................................................... 1.28 1.27 1.23 4.1 

Fund balance........................................................................ $32,382 $32,050 $30,697 5.5 

Estimated insured deposits...................................................... 2,531,216 2,527,927 2,495,498 1.4 

SAIF-member Oakars............................................................ 97,416 92,895 84,513 15.3 

BIF-members........................................................................ 2,433,800 2,435,032 2,410,985 0.9 

Assessment base..................................................................... 3,959,679 3,865,991 3,591,535 10.3 

SAIF-member Oakars............................................................ 100,422 95,280 85,935 16.9 

BIF-members........................................................................ 3,859,256 3,770,711 3,505,600 10.1 

Savings Association Insurance Fund 

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

Fund balance........................................................................ $11,906 $11,747 $11,049 7.7 

Estimated insured deposits...................................................... 868,038 859,694 810,902 7.0 

BIF-member Oakars............................................................... 385,335 374,199 342,469 12.5 

SAIF-member Sassers......................................................... 92,613 91,811 75,343 22.9 

Other SAIF members............................................................ 390.091 393,684 393,089 -0.8 

Assessment base..................................................................... 1,015,372 989,759 911,516 11.4 

BIF-member Oakars............................................................... 389,871 378,125 345,085 13.0 

SAIF-member Sassers......................................................... 113,516 112,916 91,392 24.2 

Other SAIF members............................................................ 511,984 498,718 475,039 7.8 

Insurance Fund Reserve Ratios* 

Percent of Insured Deposits 

Fund Balances and Insured Deposits* 

($Millions) 

1.43 1.43 

BIF SAIF 

BIF 

Balance 

BIF-Insured 

Deposits 

SAIF SAIF-Insured 

Balance Deposits 

1.39 12/98 26,612 2,134,425 9,840 716,029 1.38 1.38 

1.37 1.37 1.37 1.37 

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

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

1.28 1.27 12/01 30,439 2,409,566 10,935 801,171 Target 1.26

1.25 1.25 

Ratio 1.23 3/02 30,697 2,495,498 11,049 810,902 1.25 

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

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

12/02 32,050 2,527,927 11,747 859,694 

12/98 12/99 12/00 12/01 3/02 6/02 9/02 12/02 3/03 3/03 32,382 2,531,216 11,906 868,038 

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

periods may reflect adjustments. As a result, prior period reserve ratios may differ from previously reported values. Only year 

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

include U.S. branches of foreign banks. 

TABLE II-B. Closed/Assisted Institutions 

(dollar figures in millions) 

BIF Members 

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

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

SAIF Members 

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

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

2003** 2002** 2002 2001 2000 1999 1998 

1 

$1,052 

6 

$2,137 

10 

$2,508 

3 

$54 

6 

$378 

7 

$1,490 

3 

$371 

0 

$0 

0 

$0 

1 

$50 

1 

$2,200 

1 

$30 

1 

$71 

0 

$0 

** Through March 31. 

ALL FDIC-INSURED INSTITUTIONS 13 FIRST QUARTER 2003 
 

 

 

 

FDIC Quarterly Banking Profile 

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

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

BIF Members 

Number of institutions reporting................................................ 8,098 8,247 8,125 8,326 8,571 8,834 9,031 

BIF-member Oakars............................................................ 807 774 801 766 743 744 745 

Other BIF-members............................................................... 7,291 7,473 7,324 7,560 7,828 8,090 8,286 

Total assets...........................................................................$7,464,692 $6,763,567 $7,336,024 $6,856,716 $6,509,713 $5,980,168 $5,702,872 

Total deposits........................................................................ 4,949,188 4,514,548 4,854,908 4,567,608 4,337,665 3,987,340 3,843,779 

Net income........................................................................... 25,829 22,556 92,712 76,626 73,580 73,932 64,451 

Return on assets (%)............................................................... 1.40 1.33 1.32 1.14 1.18 1.29 1.18 

Return on equity (%)............................................................... 15.17 14.44 14.35 12.93 13.89 15.10 13.82 

Noncurrent assets plus OREO to assets (%)................................. 0.88 0.94 0.91 0.90 0.72 0.62 0.64 

Number of problem institutions................................................... 111 98 116 90 74 66 68 

Assets of problem institutions................................................... $31,963 $32,695 $32,176 $31,881 $10,787 $4,450 $5,326 

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

Assets of failed/assisted institutions............................................. $1,052 $2,137 $2,508 $54 $378 $1,490 $371 

SAIF Members 

Number of institutions reporting................................................ 1,216 1,273 1,229 1,287 1,333 1,387 1,432 

SAIF-member Oakars............................................................ 135 134 133 130 123 123 116 

Other SAIF-members............................................................ 1,081 1,139 1,096 1,157 1,210 1,264 1,316 

Total assets...........................................................................$1,141,352 $1,058,978 $1,099,966 $1,011,737 $952,161 $903,532 $828,177 

Total deposits........................................................................ 729,449 657,699 713,599 621,825 577,100 550,703 542,481 

Net income........................................................................... 3,548 2,792 12,463 10,623 8,070 8,450 7,568 

Return on assets (%)............................................................... 1.27 1.07 1.17 1.11 0.89 0.99 0.98 

Return on equity (%)............................................................... 13.86 12.55 12.79 13.46 11.12 11.97 11.33 

Noncurrent assets plus OREO to assets (%)................................. 0.76 0.76 0.79 0.75 0.65 0.64 0.80 

Number of problem institutions................................................... 18 26 20 24 20 13 16 

Assets of problem institutions................................................... $2,718 $19,027 $6,751 $7,923 $13,053 $5,524 $5,992 

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

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

* Excludes insured branches of foreign banks (IBAs). 

** Through March 31, ratios annualized where appropriate. 

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

(dollar figures in millions) 

Commercial Banks and Savings Institutions 

March 31, 2003 

Number of 

Institutions 

Total 

Assets 

Domestic 

Deposits* 

Estimated Insured Deposits 

BIF SAIF Total

FDIC-Insured Commercial Banks............................................. 7,864 7,196,354 4,125,638 2,274,290 400,893 2,675,183 

BIF-member..................................................................... 7,754 7,031,325 4,017,197 2,241,296 346,660 2,587,956 

SAIF-member.................................................................. 110 165,029 108,441 32,994 54,233 87,227 

FDIC-Supervised............................................................... 4,849 1,313,732 972,465 628,776 83,444 712,220 

OCC-Supervised............................................................... 2,065 4,001,717 2,231,407 1,197,005 229,765 1,426,770 

Federal Reserve-Supervised................................................ 950 1,880,905 921,765 448,509 87,684 536,193 

FDIC-Insured Savings Institutions............................................. 1,450 1,409,690 900,191 255,746 467,145 722,891 

OTS-Supervised Savings Institutions....................................... 958 1,056,709 648,847 113,517 402,042 515,559 

BIF-member..................................................................... 41 145,263 74,541 52,039 11,951 63,990 

SAIF-member.................................................................. 917 911,446 574,306 61,479 390,091 451,570 

FDIC-Supervised State Savings Banks.................................... 492 352,981 251,345 142,229 65,103 207,332 

BIF-member..................................................................... 303 288,104 205,052 139,286 26,724 166,009 

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

Total Commercial Banks and 

189 64,877 46,293 2,943 38,380 41,323 

Savings Institutions................................................... 9,314 8,606,043 5,025,829 2,530,036 868,038 3,398,074 

BIF-member........................................................................ 8,098 7,464,692 4,296,789 2,432,620 385,335 2,817,955 

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

Other FDIC-Insured Institutions 

1,216 1,141,352 729,040 97,416 482,704 580,120 

U.S. Branches of Foreign Banks............................................. 16 11,261 5,381 1,180 0 1,180 

Total FDIC-Insured Institutions....................................... 9,330 8,617,304 5,031,210 2,531,216 868,038 3,399,255 

* Excludes $653 billion in foreign office deposits, which are uninsured. 

FIRST QUARTER 2003 14 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

TABLE V-B. Assessment Base Distribution and Rate Schedules 

BIF Assessment Base Distribution
 

Assessable Deposits in Billions as of March 31, 2003
 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2003
 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

7,448 

$3,830 

106 

$15 

1 

$0 

91.8 

96.7 

1.3 

0.4 

0.0 

0.0 

439 5.4 

$89 2.3 

12 0.1 

$2 0.0 

0 0.0 

$0 0.0 

96 

$23 

9 

$1 

3 

$0 

1.2 

0.6 

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 BIF and SAIF members. 

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

by on-site examinations. 

SAIF Assessment Base Distribution
 

Assessable Deposits in Billions as of March 31, 2003
 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2003
 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

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

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

2. Adequately capitalized 

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

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

3. Undercapitalized 

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

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

1,103 

$984 

7 

$1 

0 

$0 

90.7 

96.9 

0.6 

0.1 

0.0 

0.0 

80 6.6 

$28 2.8 

4 0.3 

$0 0.0 

0 0.0 

$0 0.0 

18 

$2 

4 

$0 

0 

$0 

1.5 

0.2 

0.3 

0.0 

0.0 

0.0 

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

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

by on-site examinations. 

Assessment Rate Schedules
 

Second Semiannual 2003 Assessment Period
 

Cents Per $100 of Assessable Deposits
 

Capital Group 

Supervisory Risk Subgroup 

A B C 

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

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

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

0 

3 

10 

3 

10 

24 

17 

24 

27 

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

Currently, the rate schedules are identical. 

ALL FDIC-INSURED INSTITUTIONS 15 FIRST QUARTER 2003 
FDIC Quarterly Banking Profile 

Number of FDIC-Insured “Problem” Institutions, 1995–2003 

Number of Institutions 

200
 

100
 

0 

193 

117 

92 84 79 

94 

114 

136 129 

12/95 12/96 12/97 12/98 12/99 12/00 12/01 12/02 3/03 

SAIF Members 

BIF Members 

SAIF Members 42 31 19 16 13 20 24 20 18
 

BIF Members 151 86 73 68 66 74 90 116 111
 

Assets of FDIC-Insured “Problem” Institutions, 1995–2003 

$ Billions 

100
 

50
 

0 

$31 

$13 

$7 $11 $10 

$24 

$40 $39 $35 

12/95 12/96 12/97 12/98 12/99 12/00 12/01 12/02 3/03 

SAIF Member Assets 

BIF Member Assets 

SAIF Members 11 6 2 6 6 13 8 7 3
 

BIF Members 20 7 5 5 4 11 32 32 32
 

FIRST QUARTER 2003 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 I­A through V­A of

the FDIC Quarterly Banking Profile is aggregated for all

FDIC­insured Institutions, both commercial banks and savings institutions. Some tables are arrayed by groups of

FDIC­insured institutions based on predominant types of

asset concentration, while other tables aggregate institutions by asset size and geographic region. Quarterly and

full­year 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 charge­off information for loans outstanding and other assets.

Tables I-B through V-B. 

A separate set of tables(Tables I­B through V­B) provides

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

savings association (SAIF) insurance funds, closed/assisted

institutions, and assessments.

Summary balance­sheet and earnings data are provided for

commercial banks and savings institutions according to

insurance fund membership. BIF­member institutions may

acquire SAIF­insured deposits, resulting in institutions with

some deposits covered by both insurance funds. Also, SAIF

members may acquire BIF­insured deposits. The insurance

fund membership does not necessarily reflect which fund

insures the largest percentage of an institution's deposits.

Therefore, the BIF­member and the SAIF­member tables

each include deposits from both insurance funds. Depository institutions that are not insured by the FDIC through

either the BIF or SAIF are not included in the FDIC Quarterly Banking Profile. U.S. branches of institutions headquartered in foreign countries and non­deposit 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 FDIC­insured

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 double­counting. No adjustments are

made for any double­counting of subsidiary data. 

All asset and liability figures used in calculating performance ratios represent average amounts for the period

(beginning­of­period amount plus end­of­period amount

plus any interim periods, divided by the total number of

periods). For "pooling­of­interest" mergers, the assets of the

acquired institution(s) are included in average assets since

the year­to­date income includes the results of all merged

institutions. No adjustments are made for "purchase

accounting" mergers. Growth rates represent the percentage change over a 12­month period in totals for institutions

in the base period to totals for institutions in the current

period. 

All data are collected and presented based on the location

of each reporting institution's main office. Reported data

may include assets and liabilities located outside of the

reporting institution's home state. In addition, institutions

may change their charters, resulting in an inter­industry

migration, e.g., savings institutions can convert to commercial banks or commercial banks may convert to savings

institutions. These situations can affect state and regional

statistics.

ACCOUNTING CHANGES 

Goodwill and intangible assets - FAS 141 terminates the

use of pooling­of­interest 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. 133 Accounting for Derivative Instruments 

and Hedging Activities - establishes new accounting and

reporting standards. Derivatives were previously off­balance sheet items, but beginning in 2001 all banks must recognize derivatives as either assets or liabilities on the

balance sheet, measured at fair value. A derivative may be

specifically designated as a "fair value hedge," a "cash flow

hedge," or a hedge of a foreign currency exposure. The

accounting for changes in the value of a derivative (gains

and losses) depends on the intended use of the derivative,

its resulting designation, and the effectiveness of the hedge.

Derivatives held for purposes other than trading are reported as "other assets" (positive fair values) or "other liabilities" (negative fair values). For a fair value hedge, the gain

or loss is recognized in earnings and "effectively" offsets loss

or gain on the hedged item attributable to the risk being

hedged. Any ineffectiveness of the hedge could result in a

net gain or loss on the income statement. Accumulated

net gains (losses) on cash flow hedges are recorded on the

balance sheet as "accumulated other comprehensive

income" and the periodic change in the accumulated net

gains (losses) for cash flow hedges is reflected directly in

equity as the value of the derivative changes.

Initial transition adjustments upon adoption of FAS 133

are reported as adjustments to net income in the income

statement as extraordinary items. Upon implementing FAS

133, a bank may transfer any debt security categorized as

held­to­maturity into the available­for­sale category or the

trading category. Unrealized gains (losses) on transferred

held­to­maturity 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 available­for­sale category.

ALL FDIC-INSURED INSTITUTIONS 17 FIRST QUARTER 2003 
 

FDIC Quarterly Banking Profile 

Subchapter S Corporations - The Small Business �ob 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 pass­through 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 after­tax earnings.

The election of Subchapter S status may result in an increase

in shareholders' personal tax liability. Therefore, some S

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

DEFINITIONS (in alphabetical order) 

All other assets - total cash, balances due from depository

institutions, premises, fixed assets, direct investments in real

estate, investment in unconsolidated subsidiaries, customers'

liability on acceptances outstanding, assets held in trading

accounts, federal funds sold, securities purchased with agreements to resell, fair market value of derivatives, and other

assets.

All other liabilities - bank's liability on acceptances, limitedlife preferred stock, allowance for estimated off­balance 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 risk­based 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, risk­based 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 seller­provided credit enhancements.

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

insured deposits that is insured by the BIF. For SAIF­member "Oakar" institutions, it represents the adjusted attributable amount acquired from BIF members.

Construction and development loans - includes loans for all

property types under construction, as well as loans for land

acquisition and development.

Core capital - common equity capital plus noncumulative

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

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

Cost of funding earning assets - total interest expense paid

on deposits and other borrowed money as a percentage of

average earning assets.

Derivatives (notional amount) - represents the sum of the following� interest­rate contracts (defined as the "notional"

value of interest­rate swap, futures, forward and option contracts), foreign­exchange­rate contracts, commodity contracts and equity contracts (defined similarly to interest­rate

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 �une

30, 2000 the amount of estimated uninsured deposits was

adjusted to consider a financial institution's better estimate.

Since March 31, 2002, all institutions provide a reasonable

estimate of uninsured deposits from their systems and

records.

Failed/assisted institutions - an institution fails when regulators take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or

another healthy institution. This action may require the

FDIC to provide funds to cover losses. An institution is

defined as "assisted" when the institution remains open and

receives some insurance funds in order to continue operating.

FHLB advances - all borrowings by FDIC insured institutions

from the Federal Home Loan Bank System (FHLB), as

reported by Call Report filers and by TFR filers.

FIRST QUARTER 2003 18 ALL FDIC-INSURED INSTITUTIONS 
 

FDIC Quarterly Banking Profile 

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 1­4 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 government­sponsored

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 interest­bearing 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 BIF­member institutions, and for all SAIF­member institutions for which the FDIC is the primary federal

regulator, FDIC composite ratings are used. For all SAIFmember institutions whose primary federal regulator is the

OTS, the OTS composite rating is used. 

Reserves for losses - the allowance for loan and lease losses

on a consolidated basis. 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 risk­based capital
 

definitions which include on­balance­sheet as well as off­balance­sheet items multiplied by risk­weights that range from
 

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

balance sheet equivalent amount for selected off­balancesheet accounts.
 

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

insured deposits that is insured by the SAIF. For BIF­member "Oakar" institutions, it represents the adjusted attributable amount acquired from SAIF members.
 

Securities - excludes securities held in trading accounts.
 

Banks' securities portfolios consist of securities designated as
 

"held­to­maturity", which are reported at amortized cost
 

(book value), and securities designated as "available­forsale", reported at fair (market) value.
 

Securities gains (losses) - realized gains (losses) on held­tomaturity and available­for­sale securities, before adjustments
 

for income taxes. Thrift Financial Report (TFR) filers also
 

include gains (losses) on the sales of assets held for sale.
 

Troubled real estate asset rate - noncurrent real estate loans
 

plus other real estate owned as a percent of total real estate
 

loans and other real estate owned.
 

Trust assets - market value, or other reasonably available
 

value of fiduciary and related assets, to include marketable
 

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

estate, equipment, collectibles, and household goods.
 

Such fiduciary assets are not included in the assets of the
 

financial institution.
 

Unearned income & contra accounts - unearned income for

Call Report filers only. 

Unused loan commitments - includes credit card lines, home
 

equity lines, commitments to make loans for construction,
 

loans secured by commercial real estate, and unused commitments to originate or purchase loans.
 

Volatile liabilities - the sum of large­denomination time
 

deposits, foreign­office 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 FIRST QUARTER 2003 
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 Arthur J. Murton

and Research

Media Inquiries (202) 898-6993

Authors Don Inscoe

Associate Director, Statistics Branch

(202) 898-3940 

Kevin Brown 

(202) 898-6817

Ross Waldrop

(202) 898-3951