Second Quarter 1997 

FDIC 

Division of Research 

& Statistics 

Don Inscoe 

Associate Director, 

Statistics Branch 

(202) 898-3940 

Tim Critchfield 

(202) 898-8557 

Jim McFadyen 

(202) 898-7027 

Ross Waldrop 

(202) 898-3951 

For the second quarter in a row, insured commercial banks reported record profits. Industry net income in the second quarter of 1997 totaled $14.6 

billion, an increase of $154 million over the previous quarterly record, set in the first quarter, and 

$851 million (6.2 percent) more than banks 

earned in the second quarter of 1996. Higher net 

interest income resulting from strong loan growth 

was the main contributor to the earnings improvement. Commercial banks' annualized return on 

assets (ROA) in the second quarter was 1.24 percent, down from 1.25 percent in the first quarter 

and 1.27 percent a year ago. It is the fifth-highest 

quarterly ROAin the industry's history. The return 

• Industry Earnings Rise To Second Consecutive Quarterly Record 

• Net Income Of $14.6 Billion Surpasses Previous Record By $154 Million 

• Growth In Lending Activity Lifts Net Interest Income 

• Mergers Increase With Arrival Of Interstate Branching 

COMMERCIAL BANKING PERFORMANCE — SECOND QUARTER 1997 

$ Billions 

14.5 14.6 

10.8 10.3 

11.5 

10.8 11.1 11.2 

11.8 

10.7 

12.0 

13.8 13.2 13.7 

11.1 

12.0 

13.8 

12.0 

Net Operating Income 

Securities and Other Gains, Net 

0 

Quarterly Net Income, 1993 - 1997 

on equity (ROE) was 14.72 percent, down from 

15.11 percent in the first quarter and 15.41 percent in the second quarter of 1996. Almost two 

out of every three banks (66.4 percent) reported 

an ROA of 1.0 percent or higher for the quarter, 

and 65.1 percent of all banks reported higher 

earnings than a year ago. 

In the first six months of 1997, banks earned 

$29.1 billion, a $3.6-billion (14.2 percent) 

improvement over the first half of 1996. The 

annualized ROA for the first half of 1997 was 1.25 

percent, up from 1.18 percent in the same period 

of 1996. Net interest income increased by $6.3 

billion (7.9 percent), and noninterest income was 

$4.1 billion (8.9 percent) higher. The earnings 

improvement was limited by higher loan-loss 

provisions (up $1.5 billion, or 18.8 percent), and 

increased noninterest expenses (up $2.9 billion, 

or 3.7 percent). 

Net interest income totaled $43.4 billion in the 

second quarter, $1.3 billion (3.0 percent) more 

than banks earned in the first quarter, and $3 

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

1993 1994 1995 1996 1997 

billion (7.4 percent) more than in the second 

quarter of 1996. Noninterest income rose to 

$25.3 billion, from $24.6 billion in the first quarter, 

and $24.1 billion a year earlier. Revenues from 

trading activities were lower than in the first 

quarter, but were modestly higher than a year 

earlier. Noninterest expenses, at $41.4 billion, 

were $1.0 billion higher than in the first quarter, 

and $2.1 billion above the level of a year ago. 

The rise in noninterest expenses was fueled by 

merger-related charges at several large 

institutions. Banks set aside $5.0 billion in 

provisions for loan losses during the second 

quarter, an increase of $694 million from the 

previous quarter and $750 million more than a 

year ago. This is the industry's largest quarterly 

loss provision since the fourth quarter of 1992. 

The industry's net interest margin registered a 

slight increase in the second quarter, as average 

asset yields increased more rapidly than average 

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

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

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

the FDIC's Institution Directory (I.D.) System on this Web site. 
Quarterly Net Interest Margins, 1993 - 1997 U.S. Treasury securities in favor of mortgage-backed 

Net Interest Margin (%) securities and other securities. 

5.0 

4.5 

4.0 

Assets < $100 Million 

Assets > $100 Million 

4.75% 

4.22% 

In the twelve months from midyear 1996 through 

midyear 1997, assets of insured commercial banks 

increased by $374 billion (8.5 percent). Loan and lease 

growth of $174.8 billion accounted for 46.7 percent of 

the increase in industry assets. Commercial and 

industrial loans increased by $70 billion (10.2 percent), 

1-4 family residential mortgage loans grew by $44.6 

billion (8.1 percent), and commercial real estate loans 

increased by $20.3 billion (6.6 percent). Commercial 

and industrial loans to small businesses grew at an 

11.0-percent rate, while loans to larger businesses 

increased by 9.6 percent. 

On the funding side, banks increased their deposits and 

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

1993 1994 1995 1996 1997 

funding costs. The second-quarter margin was 4.25 

percent, up from 4.23 percent in the first quarter. A year 

ago, the industry's margin was 4.29 percent. Only the 

largest banks — those with assets greater than $10 

billion — failed to register improvement in their net 

interest margins in the second quarter. 

Commercial bank assets grew by $129.4 billion (2.8 

percent) in the second quarter. Net loans and leases 

increased by $92.7 billion (3.4 percent), accounting for 

almost 72 percent of the increase in assets. Loan 

growth was led by commercial and industrial loans, 

which increased by $23.0 billion; 1-4 family residential 

mortgage loans, which increased by $19.0 billion; and 

credit-card loans, which increased by $9.4 billion. 

Credit-card receivables that have been securitized and 

sold grew by $5.3 billion. Banks' securities holdings 

increased by only $7.4 billion (0.9 percent), with $5.9 

billion (80 percent) of the increase attributable to 

increased market values for available-for-sale 

securities. Banks continued to reduce their holdings of 

Commercial and Industrial Loans to Small Businesses, 

1994 - 1997 

Loans Outstanding ($ Billions) 

longer-term nondeposit borrowings in the second 

quarter. Almost three-quarters of the increase in 

commercial bank liabilities (72.9 percent) came from 

growth in bank deposits. Domestic office demand 

deposits increased by $26.2 billion (4.6 percent), and 

time deposits rose by $29.3 billion (2.8 percent). 

Foreign-office deposits increased by $28.3 billion (6.0 

percent). 

Credit-Card Loss Rates and Personal Bankruptcy Filings, 

1984 - 1997 

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

6 Personal 

Bankruptcy 

Filings 

Credit Card Charge-Off Rates 

350 

5 300 

4 250 

3 200 

2 150 

1 100 

50 1 23412341234123412341234123412341234123412341234123412 

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 19961997 

0 

400 

200 

0 

1994 1995 1996 1997 

155.2 166.9 177.8 

197.4 

302.8 

352.3 369.3 

405.0 

Small businesses 

(Original loan amounts <$1 million) 

Medium/large businesses 

(Original loan amounts >$1 million) 

as of June 30 

Sources: Bankruptcies - Administrative Office of the United States Courts 

Charge-Off Rates - Commercial Bank Call Reports 

Net loan charge-offs at commercial banks totaled $4.4 

billion in the second quarter, an increase of $358 million 

from the first quarter, and a $627-million increase from 

the second quarter of 1996. Net charge-offs of creditcard loans, at $2.9 billion, were $164 million higher than 

in the first quarter, and $609 million above the level of a 

year earlier. Credit-card charge-offs accounted for 66.4 

percent of all loan charge-offs taken by commercial 

banks during the second quarter. The annualized net 

charge-off rate on banks' credit-card loans rose to 5.22 

percent in the second quarter, from 4.92 percent in the 

first quarter and 4.48 percent a year earlier. This is the 

highest quarterly charge-off rate for credit-card loans in 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 Second Quarter 1997 
the 14 years that banks have reported this information 

(the previous quarterly record was 4.97 percent, in the 

second quarter of 1992). Net charge-off rates on other 

loan categories were lower than a year ago. 

Noncurrent loans declined by $480 million during the 

quarter. At midyear, only 1.0 percent of commercial 

banks' loans were noncurrent, the lowest percentage in 

the 16 years that noncurrent loan data have been reported. The industry's "coverage ratio" increased to an 

all-time high of $1.91 in reserves for every $1.00 of noncurrent loans. At the same time, however, the industry's 

ratio of reserves to total loans declined from 1.93 percent to 1.90 percent during the quarter, due to the strong 

increase in loans and a smaller ($1.0 billion) increase in 

reserves. 

Equity capital continued to grow during the second 

quarter, increasing by $12.7 billion (3.2 percent) to 8.44 

percent of industry assets. Retained earnings contributed $5.2 billion of the increase, and appreciation in 

available-for-sale securities portfolios added $3.8 billion. An additional $1.5 billion of equity came from increased goodwill and other intangible assets created by 

merger transactions. The average core capital (leverage) ratio, a regulatory measurement of net worth that 

excludes goodwill and certain intangibles, declined 

from 7.78 percent to 7.76 percent during the quarter. 

This is still the third-highest level ever reported for this 

ratio. At the end of June, 98 percent of all commercial 

banks, representing more than 99 percent of all commercial bank assets, met or exceeded the highest regulatory capital standards. 

The number of commercial banks reporting financial results declined by 143 in the second quarter. A total of 

198 banks were absorbed by mergers during the quarter, while 47 new banks were chartered. For the third 

consecutive quarter, no insured commercial banks 

failed. On June 1, most federal restrictions on interstate 

branching were removed. The lifting of these restrictions allowed banking companies that had operated 

multiple subsidiary banks in different states to consolidate affiliated institutions into one bank with branches 

outside its home state. Of the 198 mergers that occurred during the quarter, 77 represented mergers between banks in different states, and 75 of these 

interstate mergers took place after June 1. The number 

of commercial banks on the FDIC's "Problem List" declined by 3 institutions during the quarter, to 74 banks 

with combined assets of $5 billion at midyear. 

Noncurrent Loan Rates* 

June 30, 1997 

Nevada

Between * Noncurrent loan rates represent the percentage of loans that .75% and 1.5%

Greater than 1.5%

Northeast 

Southeast 

Central 

Southwest 

Midwest 

Alabama

0.7

Alaska

0.9

Arizona

1.1

Arkansas

0.9

California

0.9

Colorado

0.6

CT: 1.3

DE: 2.1

DC: 0.7

FL

0.8

Georgia

0.8

Hawaii

1.8

Idaho

0.9

Illinois

0.9

IN

0.7

Iowa

0.8

Kansas

1.0 Kentucky

0.8

LA

1.0

Maine

1.2

MD: 1.0

MA: 0.9

Michigan

0.6

Minnesota

0.7

MS

0.7

Missouri

0.9

Montana

1.0

Nebraska

1.1

1.9

NH: 1.7

NJ: 1.2

New Mexico

1.0

NY

1.3

N. Carolina

0.7

North Dakota

1.4

Ohio

1.0

Oklahoma

1.3

Oregon

0.9

Pennsylvania

1.0

RI: 0.9

S. Carolina

0.6

South Dakota

1.9

Tennessee

1.0

Texas

0.8

Utah

1.2

VT: 1.0

Virginia

0.9

Washington

0.8

WV

1.1

Wisconsin

0.9

Wyoming

0.6

Puerto Rico

2.2

West 

Less than .75% are past due 90 days or more or in nonaccrual status.

FDIC Quarterly Banking Profile 

Second Quarter 1997 3 FDIC-Insured Commercial Banks 
TABLE I-A. Selected Indicators, FDIC-Insured Commercial Banks 

1997* 1996* 1996 1995 1994 1993 1992 

Return on assets (%)................................................ 1.25 1.18 1.19 1.17 1.15 1.20 0.93 

Return on equity (%)................................................. 14.90 14.42 14.46 14.66 14.61 15.34 12.98 

Core capital (leverage) ratio (%)............................... 7.76 7.72 7.64 7.61 7.64 7.65 7.22 

Noncurrent assets plus

 other real estate owned to assets (%).................... 0.69 0.82 0.75 0.85 1.01 1.61 2.54 

Net charge-offs to loans (%)..................................... 0.60 0.56 0.58 0.49 0.50 0.85 1.27 

Asset growth rate (%)................................................ 8.51 5.42 6.16 7.53 8.21 5.72 2.19 

Net interest margin (%)............................................. 4.23 4.24 4.27 4.29 4.36 4.40 4.41 

Net operating income growth (%)............................. 14.46 9.18 6.47 7.49 16.18 35.36 92.41 

Number of institutions reporting................................ 9,308 9,690 9,528 9,940 10,451 10,958 11,462 

Percentage of unprofitable institutions...................... 3.91 3.52 4.21 3.54 3.98 4.89 6.85 

Number of problem institutions................................. 74 99 82 144 247 426 787 

Assets of problem institutions (in billions)................. $5 $8 $5 $17 $33 $242 $408 

Number of failed/assisted institutions....................... 0 3 5 6 11 42 100 

*Through June 30, ratios annualized where appropriate. Asset growth rates are for 12 months ending June 30. 

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

(dollar figures in millions) 

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

Preliminary 

2nd Quarter 1st Quarter 2nd Quarter %Change 

1997 1997 1996 96:2-97:2 

9,308 9,451 9,690 -3.9 

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

CONDITION DATA 

1,513,676 1,496,177 1,486,118 1.9 

Total assets............................................................................. $4,771,162 $4,641,737 $4,396,973 8.5

 Loans secured by real estate............................................ 1,194,538 1,155,972 1,103,471 8.3

 Commercial & industrial loans........................................... 755,136 732,075 685,357 10.2

 Loans to individuals........................................................... 557,744 543,688 537,753 3.7

 Farm loans........................................................................ 43,660 39,328 41,417 5.4

 Other loans & leases......................................................... 320,527 306,779 328,280 -2.4

 Less: Unearned income.................................................... 5,144 5,119 5,625 -8.6

 Total loans & leases............................................................ 2,866,461 2,772,724 2,690,654 6.5

 Less: Reserve for losses..................................................... 54,548 53,523 53,582 1.8

 Net loans & leases................................................................ 2,811,912 2,719,201 2,637,072 6.6

 Securities............................................................................... 820,482 813,101 806,299 1.8

 Other real estate owned........................................................ 4,380 4,663 5,350 -18.1

 Goodwill and other intangibles.............................................. 56,734 55,226 42,816 32.5

 All other assets...................................................................... 1,077,654 1,049,546 905,437 19.0 

Total liabilities and capital....................................................... 4,771,162 4,641,737 4,396,973 8.5

 Noninterest-bearing deposits................................................ 668,045 633,540 604,709 10.5

 Interest-bearing deposits....................................................... 2,611,515 2,560,876 2,456,759 6.3

 Other borrowed funds............................................................ 788,533 753,762 690,506 14.2

 Subordinated debt................................................................. 54,295 52,331 47,815 13.6

 All other liabilities................................................................... 245,983 251,091 232,345 5.9

 Equity capital......................................................................... 402,792 390,137 364,839 10.4 

Loans and leases 30-89 days past due.................................. 35,158 38,116 33,569 4.7 

Noncurrent loans and leases.................................................. 28,628 29,108 30,177 -5.1 

Restructured loans and leases................................................ 3,395 3,522 3,546 -4.2 

Direct and indirect investments in real estate......................... 634 652 572 10.8 

1-4 Family residential mortgages............................................ 690,353 665,531 634,747 8.8 

Mortgage-backed securities.................................................... 345,731 341,965 332,869 3.9 

Earning assets......................................................................... 4,129,300 4,017,354 3,807,687 8.4 

Long-term assets (5+ years)................................................... 699,961 691,060 626,582 11.7 

Volatile liabilities...................................................................... 1,520,244 1,461,000 1,349,406 12.7 

Foreign office deposits............................................................ 504,198 475,871 462,031 9.1 

Unused loan commitments...................................................... 2,834,611 2,696,879 2,380,338 19.1 

Off-balance-sheet derivatives................................................. 23,831,467 22,354,459 19,596,484 21.6 

INCOME DATA 

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

Preliminary Preliminary 

First Half First Half 2nd Quarter 2nd Quarter %Change 

1997 1996 %Change 1997 1996 96:2-97:2 

$164,901 $153,125 7.7 $83,874 $77,170 8.7 

Total interest expense........................................... 79,278 73,797 7.4 40,464 36,761 10.1

 Net interest income............................................. 85,623 79,328 7.9 43,410 40,408 7.4 

Provision for loan losses....................................... 9,279 7,810 18.8 4,984 4,233 17.7 

Total noninterest income....................................... 49,923 45,847 8.9 25,277 24,129 4.8 

Total noninterest expense..................................... 81,862 78,947 3.7 41,417 39,283 5.4 

Securities gains (losses)....................................... 713 553 29.1 298 80 271.6 

Applicable income taxes....................................... 16,017 13,552 18.2 7,984 7,347 8.7 

Extraordinary gains, net ....................................... 35 90 -60.9 28 23 17.8

 Net income.......................................................... 29,137 25,509 14.2 14,628 13,777 6.2 

Net charge-offs...................................................... 8,435 7,290 15.7 4,396 3,769 16.7 

Cash dividends...................................................... 17,982 14,952 20.3 9,477 7,964 19.0

 Net operating income.......................................... 28,639 25,020 14.5 14,409 13,667 5.4 
 

 

 

 

 

TABLE III-A. First Half 1997, FDIC-Insured Commercial Banks 

FIRST HALF Preliminary 

 (The way it is . . . ) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

9,308 6,047 2,888 306 67 738 1,542 2,049 2,357 1,648 974 

Total assets (in billions)............................ $4,771.2 $273.4 $711.0 $916.0 $2,870.7 $1,810.8 $854.6 $795.9 $289.3 $342.1 $678.5 

Total deposits (in billions)......................... 3,279.6 234.6 587.2 631.3 1,826.4 1,118.6 598.7 572.1 219.5 274.4 496.4 

Net income (in millions)............................. 29,137 1,658 4,734 5,688 17,056 10,208 5,462 4,912 2,056 2,092 4,406 

% of unprofitable institutions..................... 3.9 5.4 1.0 3.9 NA 4.6 4.5 3.3 2.2 3.6 8.4 

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

Performance Ratios (annualized, %) 

65.6 62.5 71.2 72.2 82.1 69.9 67.5 68.2 61.1 63.1 69.3 

Yield on earning assets............................. 8.15 8.33 8.38 8.48 7.95 7.98 8.07 8.14 8.56 7.84 8.67 

Cost of funding earning assets................. 3.92 3.66 3.65 3.84 4.04 4.29 3.79 3.88 3.79 3.38 3.51 

Net interest margin.................................... 4.23 4.67 4.74 4.64 3.91 3.69 4.28 4.26 4.77 4.46 5.16 

Noninterest income to earning assets...... 2.47 1.31 1.61 2.37 2.85 3.12 1.93 1.73 2.47 2.03 2.62 

Noninterest expense to earning assets.... 4.04 3.84 3.84 4.00 4.13 4.23 3.68 3.48 4.18 4.17 4.61 

Net operating income to assets................ 1.22 1.23 1.35 1.24 1.19 1.13 1.28 1.24 1.43 1.23 1.30 

Return on assets....................................... 1.25 1.23 1.36 1.25 1.21 1.16 1.28 1.26 1.44 1.25 1.31 

Return on equity........................................ 14.90 11.47 14.18 13.86 15.98 15.70 14.82 14.83 15.89 13.46 13.74 

Net charge-offs to loans and leases......... 0.60 0.21 0.35 0.99 0.55 0.69 0.42 0.44 0.79 0.29 0.84 

Loan loss provision to net charge-offs...... 

Condition Ratios (%) 

Loss allowance to:

110.00 168.01 131.31 115.40 100.94 103.84 122.50 131.42 110.22 114.15 99.14 

 Loans and leases.................................... 1.90 1.47 1.54 2.12 1.96 2.21 1.61 1.64 1.83 1.50 2.14

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

Noncurrent assets plus

190.54 135.22 161.77 189.66 204.50 173.92 211.23 193.19 192.65 160.44 223.14 

 other real estate owned to assets........... 0.69 0.79 0.72 0.82 0.64 0.75 0.61 0.62 0.69 0.60 0.80 

Equity capital ratio..................................... 8.44 10.83 9.69 9.14 7.68 7.38 8.93 8.56 9.21 9.54 9.66 

Core capital (leverage) ratio...................... 7.76 10.74 9.35 8.35 6.89 7.16 7.80 8.22 8.81 8.34 8.05 

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

Growth Rates (year-to-year, %) 

85.74 67.45 73.61 93.46 89.32 81.53 93.86 90.23 83.77 67.63 91.14 

Assets....................................................... 8.51 - - - - 8.63 11.32 14.15 1.87 4.96 3.56 

Equity capital............................................. 10.40 - - - - 7.63 17.59 14.95 5.56 13.56 4.66 

Net interest income................................... 7.94 - - - - 4.40 10.85 14.92 6.00 3.95 7.62 

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

Noncurrent assets plus

14.22 - - - - 17.44 17.16 19.52 0.63 4.62 10.11 

 other real estate owned.......................... -7.68 - - - - -14.47 3.97 10.85 1.07 -1.61 -17.26 

Net charge-offs......................................... 15.70 - - - - 3.79 17.07 27.98 30.50 3.37 28.73 

Loan loss provision................................... 

PRIOR FIRST HALVES

 (The way it was . . . ) 

18.80 - - - - -4.25 28.09 43.21 23.39 1.57 56.86 

Number of institutions.......................1996 9,690 6,470 2,816 331 73 765 1,592 2,137 2,454 1,722 1,020 

.........................................1994 10,717 7,561 2,773 328 55 853 1,789 2,351 2,667 1,899 1,158 

.........................................1992 11,686 8,555 2,757 328 46 954 1,904 2,580 2,831 2,077 1,340 

Total assets (in billions)....................1996 $4,397.0 $290.2 $681.0 $1,001.3 $2,424.5 $1,667.1 $767.7 $697.2 $284.0 $325.9 $655.1 

.........................................1994 3,892.6 326.3 676.5 1,079.4 1,810.3 1,526.4 613.7 639.3 251.1 293.5 568.6 

.........................................1992 3,438.3 348.0 669.7 1,062.1 1,358.4 1,303.9 521.7 565.3 232.8 271.8 542.7 

Return on assets (%).......................1996 1.18 1.22 1.29 1.30 1.10 1.06 1.24 1.19 1.44 1.23 1.30 

.........................................1994 1.17 1.17 1.19 1.40 1.01 1.08 1.22 1.18 1.47 1.19 1.17 

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

Net charge-offs to loans & leases (%) 

0.92 1.11 1.04 1.00 0.74 0.74 1.04 1.09 1.29 1.10 0.79 

........................................1996 0.56 0.19 0.37 0.82 0.53 0.67 0.42 0.40 0.63 0.29 0.71 

.........................................1994 0.53 0.17 0.33 0.64 0.59 0.83 0.23 0.29 0.40 0.10 0.62 

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

Noncurrent assets plus

1.20 0.45 0.64 1.39 1.49 1.80 0.78 0.75 0.74 0.74 1.04 

 OREO to assets (%).....................1996 0.82 0.84 0.80 0.84 0.81 0.95 0.65 0.63 0.70 0.64 1.00 

.........................................1994 1.27 0.97 1.14 1.16 1.43 1.62 0.88 0.78 0.86 0.79 1.70 

.........................................1992 2.93 1.58 2.01 2.73 3.89 4.02 2.05 1.61 1.49 2.09 3.58 

Equity capital ratio (%)......................1996 8.30 10.42 9.41 9.02 7.43 7.45 8.45 8.50 8.89 8.82 9.56 

.........................................1994 7.83 9.91 8.88 8.24 6.83 7.11 8.04 7.99 8.80 8.44 8.63 

.........................................1992 7.22 9.38 8.17 7.48 6.00 6.43 7.66 7.75 8.55 7.36 7.53 
 

 

TABLE IV-A. Second Quarter 1997, FDIC-Insured Commercial Banks 

SECOND QUARTER Preliminary 

 (The way it is . . . ) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

9,308 6,047 2,888 306 67 738 1,542 2,049 2,357 1,648 974 

Total assets (in billions)............................................ $4,771.2 $273.4 $711.0 $916.0 $2,870.7 $1,810.8 $854.6 $795.9 $289.3 $342.1 $678.5 

Total deposits (in billions)......................................... 3,279.6 234.6 587.2 631.3 1,826.4 1,118.6 598.7 572.1 219.5 274.4 496.4 

Net income (in millions)............................................ 14,628 858 2,413 2,795 8,563 5,070 2,734 2,453 1,070 1,078 2,223 

% of unprofitable institutions.................................... 4.2 5.6 1.4 4.2 NA 5.0 4.9 3.7 2.6 3.7 8.0 

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

Performance Ratios (annualized, %) 

65.1 61.9 71.4 68.6 71.6 70.5 65.4 68.1 61.9 62.6 66.3 

Yield on earning assets............................................ 8.22 8.45 8.49 8.63 7.97 8.02 8.13 8.23 8.68 7.94 8.77 

Cost of funding earning assets................................. 3.96 3.71 3.69 3.91 4.08 4.35 3.79 3.94 3.87 3.41 3.56 

Net interest margin................................................... 4.25 4.75 4.79 4.73 3.89 3.67 4.34 4.29 4.81 4.53 5.20 

Noninterest income to earning assets...................... 2.48 1.35 1.63 2.41 2.85 3.12 1.90 1.69 2.54 2.07 2.69 

Noninterest expense to earning assets.................... 4.06 3.90 3.88 4.09 4.11 4.25 3.64 3.44 4.19 4.25 4.72 

Net operating income to assets................................ 1.22 1.26 1.37 1.22 1.18 1.11 1.27 1.23 1.48 1.26 1.32 

Return on assets...................................................... 1.24 1.27 1.37 1.23 1.21 1.14 1.27 1.25 1.50 1.27 1.32 

Return on equity....................................................... 14.72 11.77 14.24 13.48 15.73 15.38 14.55 14.63 16.29 13.40 13.68 

Net charge-offs to loans and leases......................... 0.62 0.25 0.37 1.01 0.58 0.72 0.44 0.47 0.84 0.29 0.88 

Loan loss provision to net charge-offs..................... 

Growth Rates (year-to-year, %) 

113.37 158.31 129.79 124.94 101.50 104.54 145.05 139.88 111.95 99.14 94.81 

Net interest income.................................................. 7.43 - - - - 5.17 10.65 15.25 6.70 4.19 2.85 

Net income............................................................... 6.18 - - - - -0.99 10.88 17.55 -0.04 8.78 8.86 

Net charge-offs......................................................... 16.65 - - - - 5.46 18.68 31.37 40.42 -11.85 26.23 

Loan loss provision................................................... 

PRIOR SECOND QUARTERS

 (The way it was . . . ) 

17.73 - - - - -11.07 42.75 51.05 36.79 -26.12 56.76 

Return on assets (%)........................1996 1.27 1.24 1.31 1.37 1.23 1.25 1.30 1.20 1.51 1.21 1.31 

.........................................1994 1.16 1.19 1.19 1.38 1.01 1.03 1.24 1.21 1.52 1.15 1.17 

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

Net charge-offs to loans & leases (%) 

0.92 1.11 1.05 1.03 0.72 0.73 1.11 1.13 1.27 1.10 0.74 

.........................................1996 0.57 0.23 0.40 0.88 0.51 0.68 0.42 0.41 0.62 0.34 0.74 

.........................................1994 0.57 0.21 0.39 0.68 0.63 0.93 0.22 0.31 0.40 0.13 0.67 

.........................................1992 1.21 0.51 0.70 1.39 1.46 1.83 0.72 0.75 0.77 0.71 1.06 

Coverage Ratio* and Reserve Levels, 1993 - 1997 

$ B illio n s 

10 0 

C o v e ra g e R a tio (% ) 

20 0 

80 16 0 

60 12 0 

40 80 

20 40 

1 2 3 4 

19 93 

1 2 3 4 

19 94 

1 2 3 4 

19 95 

1 2 3 4 

19 96 

1 2 

19 97 

*Loan-loss reserves to Noncurrent Loans and Leases. 

L o an R e se r ves ($ ) 

N o nc ur re nt Lo an s ($ ) 

C o v er a g e R a tio (% ) 
TABLE V-A. Loan Performance, FDIC-Insured Commercial Banks 

June 30, 1997 All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $10 

Million $1 Billion $10 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 1.20 1.37 1.07 1.17 1.25 1.33 1.08 1.27 1.04 1.34 1.10

 Construction and development............................. 1.20 1.31 1.16 1.52 1.00 1.18 0.82 1.57 1.39 1.14 1.40

 Commercial real estate......................................... 0.91 1.05 0.84 1.02 0.88 1.28 0.67 1.12 1.00 0.90 0.55

 Multifamily residential real estate.......................... 0.83 1.08 0.80 0.89 0.78 0.65 0.71 1.12 0.61 0.79 1.04

 Home equity loans................................................ 0.87 0.93 0.83 0.90 0.87 1.09 0.63 0.96 0.83 1.01 0.79

 Other 1-4 Family residential.................................. 1.43 1.70 1.29 1.25 1.53 1.42 1.40 1.40 1.10 1.77 1.56 

Commercial and industrial loans*........................... 0.90 1.55 1.44 1.34 0.57 0.53 0.87 1.27 1.99 1.42 0.75 

Loans to individuals................................................. 2.24 2.33 2.02 2.25 2.28 2.51 1.82 2.31 2.26 1.86 2.23

 Credit card loans................................................. 2.48 2.97 2.47 2.45 2.50 2.56 2.02 2.78 2.57 2.23 2.45

 Other loans to individuals...................................... 2.08 2.30 1.92 2.05 2.12 2.46 1.73 2.17 1.94 1.82 1.97 

All other loans and leases (including farm)............. 0.43 NA NA 1.02 0.37 0.34 0.53 0.70 0.48 0.39 0.36 

Memo: Commercial RE loans not secured by RE.. 

Percent of Loans Noncurrent** 

0.59 1.60 0.95 0.73 0.54 0.53 0.52 1.00 0.59 1.10 0.37 

All real estate loans................................................. 1.09 0.92 0.86 1.08 1.22 1.63 0.85 0.77 0.72 1.02 1.13

 Construction and development............................. 1.15 0.86 0.89 1.29 1.30 3.20 0.72 0.73 0.81 0.79 1.25

 Commercial real estate......................................... 1.44 1.05 1.02 1.30 1.88 2.69 0.95 1.01 0.92 1.08 1.41

 Multifamily residential real estate.......................... 1.11 0.98 1.04 0.99 1.23 1.11 0.81 0.74 0.48 0.46 2.28

 Home equity loans................................................ 0.42 0.49 0.41 0.43 0.42 0.63 0.31 0.30 0.25 0.17 0.48

 Other 1-4 Family residential.................................. 0.92 0.80 0.74 1.01 0.97 1.15 0.89 0.69 0.56 1.01 0.96 

Commercial and industrial loans*........................... 0.96 1.51 1.31 0.98 0.77 0.89 0.68 1.07 1.54 1.26 0.92 

Loans to individuals................................................. 1.34 0.85 0.76 1.44 1.47 2.05 0.83 1.00 1.23 0.58 1.19

 Credit card loans................................................. 1.94 1.77 1.65 1.98 1.94 2.13 1.44 2.20 1.81 1.41 1.85

 Other loans to individuals...................................... 0.94 0.80 0.57 0.88 1.11 1.96 0.57 0.63 0.63 0.50 0.39 

All other loans and leases (including farm)............. 0.26 NA NA 0.47 0.24 0.27 0.22 0.32 0.29 0.27 0.24 

Memo: Commercial RE loans not secured by RE.. 

Percent of Loans Charged-off (net, annual) 

0.50 1.22 0.45 0.36 0.52 1.11 0.36 0.36 0.23 0.45 0.22 

All real estate loans................................................. 0.05 0.04 0.05 0.04 0.05 0.09 0.04 0.03 0.01 -0.04 0.07

 Construction and development............................. -0.02 0.04 0.09 -0.02 -0.09 0.14 0.01 0.01 0.13 -0.25 -0.10

 Commercial real estate......................................... -0.01 0.05 0.06 -0.02 -0.06 0.00 0.02 -0.01 -0.08 -0.10 0.00

 Multifamily residential real estate.......................... 0.05 0.21 0.12 0.04 0.02 0.06 0.02 0.07 -0.02 -0.04 0.13

 Home equity loans................................................ 0.17 0.18 0.08 0.16 0.20 0.18 0.08 0.13 0.09 0.60 0.30

 Other 1-4 Family residential.................................. 0.07 0.03 0.04 0.06 0.09 0.12 0.04 0.04 0.03 0.03 0.10 

Commercial and industrial loans*........................... 0.21 0.30 0.32 0.21 0.16 0.16 0.13 0.19 0.43 0.17 0.35 

Loans to individuals................................................. 2.61 0.64 1.45 3.21 2.70 3.09 1.95 1.93 2.88 1.22 3.55

 Credit card loans................................................. 4.97 3.04 4.61 5.33 4.78 5.00 4.21 5.28 5.02 4.35 5.30

 Other loans to individuals...................................... 0.98 0.50 0.72 0.89 1.17 1.05 0.91 0.88 0.67 0.93 1.30 

All other loans and leases (including farm)............. 0.06 NA NA 0.19 0.04 -0.07 0.16 0.15 0.08 0.13 0.23 

Memo: Commercial RE loans not secured by RE.. 

Loans Outstanding (in billions) 

-0.06 0.50 0.29 0.04 -0.10 -0.20 0.00 0.01 0.02 -0.01 -0.03 

All real estate loans................................................. $1,194.5 $89.7 $267.4 $263.7 $573.8 $310.3 $301.1 $229.0 $79.7 $79.5 $195.0

 Construction and development............................. 82.5 6.2 22.5 20.7 33.0 10.4 25.8 16.2 5.6 8.8 15.7

 Commercial real estate......................................... 327.2 23.7 90.7 79.5 133.2 71.9 76.4 68.5 21.4 26.7 62.3

 Multifamily residential real estate.......................... 39.7 2.0 8.8 10.7 18.3 11.5 8.2 7.4 2.7 2.6 7.4

 Home equity loans................................................ 92.5 2.1 13.2 21.1 56.1 24.0 22.0 22.3 3.6 0.8 19.8

 Other 1-4 Family residential.................................. 597.8 44.8 122.4 128.4 302.2 166.2 164.0 108.1 38.0 37.5 84.0 

Commercial and industrial loans............................. 755.1 26.5 77.4 129.6 521.6 283.2 119.6 147.5 37.6 53.8 113.3 

Loans to individuals................................................. 557.7 24.4 72.2 167.7 293.4 189.2 103.8 96.0 44.6 38.5 85.6

 Credit card loans................................................. 225.3 1.3 12.8 85.7 125.4 98.6 31.0 22.7 22.8 3.4 46.9

 Other loans to individuals...................................... 332.5 23.1 59.4 81.9 168.0 90.6 72.9 73.3 21.8 35.2 38.7 

All other loans and leases (including farm)............. 364.2 20.7 23.4 42.8 277.3 152.0 47.4 53.2 25.4 17.2 68.9 

Memo: Commercial RE loans not secured by RE.. 

Memo: Other Real Estate Owned (in millions) 

24.8 0.2 1.0 3.1 20.5 6.1 4.1 3.3 0.7 2.1 8.4 

All other real estate owned..................................... $4,379.6 $405.6 $944.1 $787.1 $2,242.8 $1,600.5 $861.7 $433.6 $223.0 $299.4 $961.5

 Construction and development............................. 568.2 54.5 161.1 128.1 224.6 139.5 219.6 46.4 41.1 27.6 93.9

 Commercial real estate......................................... 2,038.1 178.0 452.4 384.0 1,023.7 687.4 341.0 238.6 96.7 164.3 510.2

 Multifamily residential real estate.......................... 171.6 12.6 41.7 44.0 73.3 99.2 18.8 6.9 5.5 3.5 37.6

 1-4 Family residential............................................ 1,193.7 124.0 254.7 205.1 609.9 360.9 271.4 135.5 56.2 77.1 292.6

 Farmland............................................................... 119.1 36.6 34.2 25.8 22.5 25.1 10.8 6.2 23.5 26.8 26.6

 Other real estate owned in foreign offices............ 288.9 0.0 0.0 0.1 288.8 288.3 0.1 0.0 0.0 0.0 0.5 

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

**Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status. 
0 

SAVINGS INSTITUTION PERFORMANCE — SECOND QUARTER, 1997 

• Savings Institutions Earned $2.4 Billion In The Second Quarter 

• Equity Capital Ratio, At 8.53 Percent, Reaches Highest Level Since 1951 

• Movement Of Thrift Assets To Commercial Banks Hits A Record $20 

Billion 

Savings institutions reported earnings of $2.4 billion 

in the second quarter of 1997, for an average 

annualized return on assets (ROA) of 0.95 percent. 

This was virtually the same net income and ROA 

(0.96 percent) reported in the first quarter. Secondquarter earnings were $214 million lower than in the 

second quarter of 1996 when thrifts reported their 

best quarterly earnings ever, with net income of $2.6 

billion and an ROA of 1.03 percent. The main factor 

in the earnings decline was higher income taxes, 

which were $295 million higher than a year ago. 

Income taxes were unusually low in the second 

quarter of 1996 when a few large institutions made 

use of deferred tax assets to offset taxable income. 

Over 96 percent of savings institutions were 

profitable in the second quarter and 38 percent had 

ROAs exceeding 1.00 percent. Nearly 70 percent of 

thrifts showed improved earnings in the second 

quarter of this year compared to last year’s second 

quarter. 

Quarterly Net Income, 1993 - 1997 

$ Billions 

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

2.4 

1.7 

1.2 

1.6 

1.3 

1.8 

1.9 

1.6 1.7 

1.9 

2.2 

1.8 

2.5 2.6 

-0.0 

2.2 

2.4 2.4 

Net Operating Income 

Securities and Other Gains, Net 

1993 1994 1995 1996 1997 

Net interest margins declined during the second 

quarter to 3.25 percent from 3.33 percent in the first 

quarter. The yield on earning assets fell 2 basis 

points, while the cost of funding earning assets rose 

6 basis points, to 4.53 percent. The decline in 

margins was primarily attributable to larger 

institutions. Thrifts with over $5 billion in assets 

FDIC-Insured Savings Institutions 8 

showed a 6-basis-point decline in margins, due to a 

decline in the yield on earning assets. Thrifts with $1 

billion to $5 billion in assets reported a 19-basispoint decline as their cost of funding earning assets 

increased by 13 basis points. Thrifts with $100 

million to $1 billion in assets reported a one-basispoint decline in margins. Only thrifts with less than 

$100 million in assets showed any improvement; 

their margins rose to 3.61 percent from 3.58 percent 

last quarter. 

Quarterly Net Interest Margins 

1993 - 1997 

Net Interest Margin (%) 

4.0 

3.5 

3.0 

Assets < $100 Million 

Assets > $100 Million 

3.61% 

3.23% 

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

1993 1994 1995 1996 1997 

Improvements in asset quality boosted the 

coverage ratio – loan-loss reserves to noncurrent 

loans –to a record 83 cents in reserves for each 

dollar of noncurrent loans despite a slight decline in 

loan-loss reserves. Noncurrent loans declined by 

$664 million, to $8.2 billion, while reserves fell 

slightly – by $105 million. This is the highest 

coverage ratio since data became available in 1990. 

Reserves as a percentage of total loans fell below 

1.0 percent for the first time since early 1990. 

Real estate loans accounted for 95 percent of the 

$664-million decline in noncurrent loans during the 

second quarter. The greatest improvements 

occurred in residential real estate loans. 

Noncurrent loans secured by 1-4 family properties 

fell by $437 million while noncurrent loans secured 

FDIC Quarterly Banking Profile 

Second Quarter 1997 
Coverage Ratio* and Reserve Levels, 1993 - 1997 

$ Billions Coverage Ratio (%) 

30 100 

Coverage Ratio (%) 25 

80 

20 

Loan 

Reserves 

($) 

Noncurrent 

Loans 

($) 

60 

15 

40 

10 

5 20 

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

1993 1994 1995 1996 1997 

*Loan-Loss reserves to Noncurrent Loans and Leases. 

by multifamily properties registered a decline of 

$111 million. An increase in net charge-offs helped 

reduce the noncurrent rates for these loan 

categories. 

Net charge-offs increased by $53 million over their 

first-quarter level, but remained lower than a year 

ago. The increase from the first quarter to the 

second quarter was due to higher loan-loss rates on 

residential real estate loans. Net charge-off rates 

were up by 5 basis points for home mortgages and 

up by 4 basis points for multifamily residential 

mortgages. The decline from year-ago levels was 

primarily due to lower loan losses on commercial 

real estate loans and multifamily residential loans in 

the first half of 1997. Only consumer loans showed 

a significantly higher net charge-off rate through the 

first half of this year, at 2.13 percent, compared to 

the first half of 1996, when it was 1.50 percent. The 

majority of consumer loan net charge-offs were 

credit card loans. 

Thrift industry assets increased by $7.9 billion 

during the second quarter despite an accelerating 

trend in charter conversions and acquisitions that 

move thrift assets to the commercial banking 

industry. Loans secured by 1-4 family properties 

increased by $3 billion during the quarter. Goodwill 

and other intangible assets increased by $1.3 

billion, with one institution accounting for over $1 

billion of the industry’s increase.1 Deposits declined 

by $6.1 billion during the quarter while non-deposit 

borrowings grew by $11.2 billion. Federal Home 

1 Standard Federal of Troy, MI was purchased by a holding 

company in May 1997. Push-down accounting resulted in the 

creation of over $1 billion in goodwill. 

Loan Bank advances at institutions that file a Thrift 

Financial Report accounted for $8.1 billion of the 

increase in other borrowings. 

Overall industry asset growth has been positive, but 

a large percentage decline in aggregate assets 

occurred in the Midwest Region, where assets 

declined 19 percent from a year ago. This region 

lost three institutions with $9.4 billion in assets to the 

commercial banking industry during the second 

quarter, and assets of thrifts headquartered in the 

region fell by $9 billion, to $41.8 billion. The Midwest 

Region remains the smallest region as measured by 

total assets. 

Equity capital increased by $2.4 billion during the 

second quarter to $87.8 billion, or 8.53 percent of 

assets. This is the industry’s highest equity capital 

ratio since 1951. Higher unrealized gains on 

available-for-sale securities added $990 million to 

equity capital during the quarter. About half of the 

increase in equity was due to the increase in 

goodwill. The core capital (leverage) ratio, which 

does not include goodwill or unrealized gains, 

increased only slightly, to 7.87 percent from 7.84 

percent at the beginning of the quarter. Earnings 

retained by the industry rose to $1.3 billion from $1.1 

billion last quarter. 

The number of savings institutions declined by 34, 

to 1,852 institutions. Twenty-nine savings 

institutions with over $20 billion in assets migrated 

to the commercial banking industry. Commercial 

banks acquired 18 savings institutions with assets 

of $10.5 billion and 11 savings institutions, with $9.8 

billion in assets, converted to commercial bank 

charters. This was the largest quarterly transfer 

ever to the commercial banking industry. The first 

quarter of 1997 had the second-highest transfer and 

the fourth quarter of 1996 also showed a sizable 

movement to commercial banks. A tax law change 

in August 1996 removed a large part of the tax 

penalty for recapture of a thrift’s bad-debt reserves 

when it converts to a commercial bank or is acquired 

by a bank. Since that time, there have been 81 

thrifts with almost $55 billion in assets that have 

been absorbed into the commercial banking 

industry. Consolidation within the thrift industry 

accounted for a decline of 12 institutions with $7 

billion in assets during the second quarter. There 

were 14 mutual-to-stock conversions during the 

second quarter involving $2.4 billion in assets. The 

number of “problem” institutions fell to 29 at mid year 

from 35 institutions at the end of the first quarter. 

Assets of “problem” institutions declined during the 

quarter by 47 percent from $5.3 billion to $2.8 billion. 

FDIC Quarterly Banking Profile 

Second Quarter 1997 9 FDIC-Insured Savings Institutions 
Noncurrent Loan Rates By State* 

June 30, 1997 

Greater than 1.5%

Southwest 

West 

Alabama

0.7 Alaska

0.3

Arizona

0.4

Arkansas

0.8

California

1.3

Colorado

0.2

FL

0.9

Georgia

1.0

Hawaii

2.4

Idaho

0.4

Illinois

1.1

IN

0.9

Iowa

0.9

Kansas

0.3 Kentucky

0.7

LA

0.4

Maine

1.2

Michigan

0.7

Minnesota

0.5

MS

1.5

Missouri

1.0

Montana

0.3

Nebraska

0.7

Nevada

1.0

New

Mexico

0.6

N. Carolina

0.6

North

Dakota

0.5

Ohio

0.6

Oklahoma

0.8

Oregon

0.5

S. Carolina

0.6

South

Dakota

0.3

Tennessee

0.5

Texas

1.3

Utah

0.9

VT: 1.9

Virginia

1.1

Washington

0.4

WV

1.2

Wisconsin

0.4

Wyoming

0.7

Puerto

Rico

1.7

Northeast 

Southeast 

Central 

Midwest 

CT: 1.4

DE: 1.5

DC: 2.4

MD: 1.7

MA: 0.8

NH: 0.9

NJ: 4.5

RI: 1.4

NY

1.7

0.9

Pennsylvania

Between .75% and 1.5% * Noncurrent loan rates represent the percentage of loans that

Less than .75% are past due 90 days or more or in nonaccrual status.

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Second Quarter 1997 
TABLE I-B. Selected Indicators, FDIC-Insured Savings Institutions*

 1997** 1996** 1996 1995 1994 1993 1992 

Return on assets (%).............................................. 0.94 1.01 0.70 0.77 0.66 0.70 0.65 

Return on equity (%)............................................... 11.23 12.00 8.40 9.40 8.28 9.24 9.48 

Core capital (leverage) ratio (%)............................. 7.87 7.87 7.76 7.80 7.65 7.45 6.77 

Noncurrent assets plus

 other real estate owned to assets (%).................. 1.02 1.16 1.09 1.20 1.38 2.10 3.07 

Net charge-offs to loans (%)................................... 0.28 0.32 0.32 0.34 0.51 0.65 0.59 

Asset growth rate (%).............................................. 0.69 0.57 0.25 1.70 0.77 -2.85 -7.44 

Net interest margin (%)........................................... 3.26 3.21 3.22 3.09 3.34 3.48 3.40 

Net operating income growth (%)........................... -8.16 32.80 -13.97 13.81 22.24 21.21 574.61 

Number of institutions............................................. 1,852 1,980 1,924 2,030 2,152 2,262 2,390 

Percentage of unprofitable institutions.................... 3.62 4.75 11.95 5.86 6.97 5.88 7.57 

Number of problem institutions............................... 29 38 35 49 71 146 276 

Assets of problem institutions (in billions)............... $3 $10 $7 $14 $39 $92 $183 

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

**Through June 30, ratios annualized where appropriate. Asset growth rates are for 12 months ending June 30. 

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

(dollar figures in millions) 

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

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

CONDITION DATA 

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

 Loans secured by real estate............................................ 

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

 Multifamily residential property........................................ 

 Commercial real estate................................................... 

 Construction, development and land............................... 

 Commercial & industrial loans........................................... 

 Loans to individuals........................................................... 

 Other loans & leases......................................................... 

 Less: Unearned income & contra accounts***.................. 

 Total loans & leases............................................................ 

 Less: Reserve for losses..................................................... 

 Net loans & leases................................................................ 

 Securities............................................................................... 

 Other real estate owned........................................................ 

 Goodwill and other intangibles.............................................. 

 All other assets...................................................................... 

Total liabilities and capital....................................................... 

 Deposits................................................................................ 

 Other borrowed funds............................................................ 

 Subordinated debt................................................................. 

 All other liabilities................................................................... 

 Equity capital......................................................................... 

Loans and leases 30-89 days past due.................................. 

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

Restructured loans and leases................................................ 

Direct and indirect investments in real estate......................... 

Mortgage-backed securities.................................................... 

Earning assets......................................................................... 

FHLB Advances (TFR filers only)............................................ 

Unused loan commitments...................................................... 

Preliminary 

2nd Quarter 

1997 

1st Quarter 2nd Quarter 

1997 1996 

%Change 

96:2-97:2 

1,852 

248,017 

$1,030,074 

629,429 

503,182 

58,232 

48,936 

19,079 

15,311 

46,821 

2,423 

238 

693,747 

6,849 

686,898 

258,227 

2,242 

10,432 

72,275 

1,030,074 

720,040 

207,389 

2,474 

12,355 

87,817 

7,917 

8,228 

3,991 

578 

190,656 

964,533 

105,665 

108,422 

1,886 1,980 

250,917 254,509 

$1,022,205 $1,023,028 

626,560 620,302 

500,204 487,148 

58,785 58,627 

49,228 50,122 

18,344 24,405 

14,834 13,473 

46,170 42,280 

2,475 2,263 

262 10,617 

689,778 667,701 

6,953 7,242 

682,825 660,460 

258,103 279,659 

2,333 2,956 

9,112 8,165 

69,832 71,789 

1,022,202 1,023,028 

726,123 727,432 

196,193 196,111 

2,364 2,405 

12,126 11,178 

85,396 85,903 

8,812 8,538 

8,892 8,919 

4,341 5,064 

595 637 

191,442 206,989 

960,127 958,125 

97,550 92,543 

105,069 97,477 

-6.5 

-2.6 

0.7

1.5

3.3

-0.7

-2.4

-21.8

13.6

10.7

7.1

N/M

3.9

-5.4

4.0

-7.7

-24.2

27.8

0.7 

0.7

-1.0

5.8

2.9

10.5

2.2 

-7.3 

-7.8 

-21.2 

-9.4 

-7.9 

0.7 

14.2 

11.2 

INCOME DATA 

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

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

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

Provision for loan losses....................................... 

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

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

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

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

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

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

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

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

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

Preliminary 

First Half 

1997 

First Half 

1996 

Preliminary 

2nd Quarter 2nd Quarter 

%Change 1997 1996 

%Change 

96:2-97:2 

$36,215 

20,952 

15,263 

1,177 

3,576 

10,891 

537 

2,596 

(1) 

4,711 

945 

2,301 

4,318 

$36,456 

21,283 

15,173 

1,079 

3,938 

11,172 

521 

2,296 

2 

5,087 

1,031 

2,636 

4,701 

-0.7 $18,514 $18,355 

-1.6 10,784 10,615 

0.6 7,730 7,740 

9.0 599 566 

-9.2 1,849 2,009 

-2.5 5,546 5,709 

3.1 299 181 

13.1 1,320 1,025 

N/M (0) (3) 

-7.4 2,413 2,628 

-8.4 505 547 

-12.7 1,078 1,574 

-8.2 2,189 2,481 

0.9 

1.6

-0.1 

6.0 

-8.0 

-2.9 

65.7 

28.8 

N/M

-8.2 

-7.7 

-31.5

-11.8 

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

***Prior to 1997, includes contra accounts such as loans in process and unamortized yield adjustments for TFR filers.

 Beginning March 31, 1997, includes only unearned income reported by Call Report filers. 
 

 

 

 

 

TABLE III-B. First Half 1997, FDIC-Insured Savings Institutions 

FIRST HALF Preliminary 

 (The way it is . . . ) 

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

All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

1,852 807 888 121 36 704 272 477 139 126 134 

Total assets (in billions).............................. $1,030.1 $42.1 $263.6 $246.4 $478.0 $341.5 $66.0 $175.9 $41.8 $64.7 $340.1 

Total deposits (in billions)........................... 720.0 34.6 207.1 172.4 305.9 258.9 50.1 127.5 31.0 39.6 212.9 

Net income (in millions)............................... 4,711.1 163.3 1,242.3 1,346.7 1,958.8 1,643.4 293.0 860.7 174.5 357.9 1,381.8 

% of unprofitable institutions....................... 3.6 6.1 1.6 2.5 2.8 2.3 6.3 2.3 1.4 6.3 9.7 

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

Performance Ratios (annualized, %) 

74.3 68.9 78.3 81.8 72.2 74.4 74.6 76.7 71.9 66.7 73.9 

Yield on earning assets............................... 7.73 7.84 7.82 7.93 7.55 7.71 8.23 7.55 7.71 8.01 7.68 

Cost of funding earning assets................... 4.47 4.25 4.30 4.52 4.56 4.14 4.49 4.50 4.81 4.81 4.68 

Net interest margin...................................... 3.26 3.59 3.51 3.41 3.00 3.57 3.74 3.04 2.90 3.21 3.00 

Noninterest income to earning assets........ 0.76 0.72 0.60 0.96 0.76 0.57 1.35 0.89 0.70 1.06 0.74 

Noninterest expense to earning assets...... 2.32 3.05 2.51 2.51 2.06 2.38 3.38 2.25 2.03 2.41 2.11 

Net operating income to assets.................. 0.86 0.71 0.89 0.97 0.81 0.91 0.74 0.87 0.87 1.08 0.80 

Return on assets......................................... 0.94 0.79 0.97 1.12 0.85 0.99 0.92 1.00 0.84 1.15 0.85 

Return on equity.......................................... 11.23 6.83 9.65 13.34 11.79 10.71 9.59 11.29 9.78 14.11 11.89 

Net charge-offs to loans and leases........... 0.28 0.10 0.13 0.36 0.35 0.31 0.46 0.22 0.05 0.39 0.26 

Loan loss provision to net charge-offs........ 

Condition Ratios (%) 

Loss allowance to:

124.48 128.62 167.10 116.46 119.82 113.37 109.82 125.99 306.68 121.75 136.26 

 Loans and leases...................................... 0.99 0.75 0.91 1.12 0.99 1.13 1.01 0.77 0.67 0.78 1.04

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

Noncurrent assets plus

83.24 70.79 88.14 66.00 95.20 67.37 117.13 104.00 93.99 69.96 92.72 

 other real estate owned to assets............. 1.02 0.89 0.90 1.35 0.92 1.20 0.93 0.64 0.66 1.01 1.09 

Noncurrent RE loans to RE loans............... 1.20 1.03 1.01 1.77 1.05 1.73 0.77 0.68 0.66 1.23 1.15 

Equity capital ratio....................................... 8.53 11.63 10.08 8.52 7.39 9.29 9.66 9.27 8.73 8.32 7.17 

Core capital (leverage) ratio........................ 7.87 11.34 9.65 7.95 6.53 8.58 9.10 8.34 8.33 7.99 6.59 

Gross real estate assets to gross assets.... 79.34 71.63 74.53 77.46 83.64 74.39 72.03 79.40 78.88 74.80 86.62 

Gross 1-4 family mortgages to gr. assets... 48.52 52.02 47.80 41.00 52.48 42.52 47.27 53.58 54.10 36.35 53.79 

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

Growth Rates (year-to-year, %) 

95.40 82.52 84.96 90.42 106.73 79.09 91.31 96.86 93.66 101.02 114.52 

Assets......................................................... 0.69 - - - - -3.85 -4.71 2.62 -19.31 -17.31 14.48 

Equity capital............................................... 2.23 - - - - -0.28 -2.02 5.37 -18.13 -12.70 13.47 

Net interest income..................................... 0.59 - - - - 0.03 1.23 0.14 -23.29 -12.69 9.02 

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

Noncurrent assets plus

-7.38 - - - - -2.29 -2.23 2.99 -26.23 -62.55 28.26 

 other real estate owned............................ -12.10 - - - - -13.40 -32.67 10.75 -13.37 -16.81 -10.68 

Net charge-offs........................................... -8.37 - - - - 3.47 38.14 86.65 -70.40 -0.43 -34.89 

Loan loss provision..................................... 

PRIOR FIRST HALVES*

 (The way it was . . . ) 

9.04 - - - - 19.06 7.76 43.23 -38.83 18.74 -3.96 

Number of institutions.......................1996 1,980 880 942 121 37 741 297 508 150 130 154 

.......................................1994 2,216 1,031 1,016 140 29 813 354 558 162 143 186 

.......................................1992 2,489 1,154 1,133 172 30 882 434 614 185 160 214 

Total assets (in billions).....................1996 $1,023.0 $45.7 $276.3 $246.4 $454.7 $355.2 $69.3 $171.4 $51.8 $78.3 $297.1 

.......................................1994 999.1 52.4 295.1 299.0 352.5 337.4 83.1 151.6 52.2 55.8 318.8 

.......................................1992 1,077.7 58.0 326.1 354.1 339.5 368.3 110.9 154.4 49.4 61.2 333.5 

Return on assets (%)........................1996 1.01 0.73 0.90 0.96 1.12 0.98 0.88 0.99 0.92 2.49 0.72 

.......................................1994 0.62 0.84 0.81 0.74 0.33 0.87 0.86 0.73 0.45 1.09 0.19 

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

Net charge-offs to loans & leases (%) 

0.60 0.79 0.70 0.65 0.42 0.42 0.73 0.83 0.96 1.44 0.45 

.......................................1996 0.32 0.10 0.18 0.29 0.43 0.29 0.34 0.12 0.15 0.33 0.46 

.......................................1994 0.54 0.11 0.21 0.53 0.86 0.46 0.21 0.11 0.14 0.27 0.94 

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

Noncurrent assets plus 

0.60 0.23 0.43 0.71 0.70 0.93 0.41 0.22 0.21 0.31 0.56 

OREO to assets (%)**...........1996 1.16 1.01 1.03 1.29 1.20 1.33 1.31 0.59 0.62 1.00 1.40 

.......................................1994 1.77 1.25 1.55 1.86 1.95 2.25 1.24 0.60 0.62 1.61 2.17 

.......................................1992 3.66 2.02 2.74 3.90 4.56 4.56 2.85 1.31 1.38 5.04 4.09 

Equity capital ratio (%)......................1996 8.40 11.16 9.88 8.24 7.31 8.96 9.39 9.03 8.60 7.88 7.23 

.......................................1994 8.00 9.68 8.90 7.93 7.06 8.26 8.54 8.66 7.91 7.40 7.39 

.......................................1992 6.70 8.08 7.19 6.69 5.99 6.72 6.75 7.35 6.27 5.83 6.57 

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

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

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

 

 

 

 

0 

TABLE IV-B. Second Quarter 1997, FDIC-Insured Savings Institutions 

SECOND QUARTER Preliminary 

 (The way it is . . . ) 

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

All 

Institutions 

Asset Size Distribution

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

 Geographic Distribution by Region 

East West 

North- South- Mid- Southeast east Central west west West 

1,852 807 888 121 36 704 272 477 139 126 134 

Total assets (in billions).................................. $1,030.1 $42.1 $263.6 $246.4 $478.0 $341.5 $66.0 $175.9 $41.8 $64.7 $340.1 

Total deposits (in billions)............................... 720.0 34.6 207.1 172.4 305.9 258.9 50.1 127.5 31.0 39.6 212.9 

Net income (in millions).................................. 2,413.2 83.7 638.5 707.1 983.9 843.0 150.5 470.8 70.4 193.2 685.4 

% of unprofitable institutions.......................... 3.8 6.3 1.6 2.5 5.6 2.4 5.9 2.3 2.2 7.9 9.7 

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

Performance Ratios (annualized, %) 

69.2 61.7 74.8 79.3 66.7 69.9 68.4 70.2 67.6 63.5 70.9 

Yield on earning assets.................................. 7.78 7.89 7.87 7.97 7.62 7.76 8.28 7.89 7.75 8.01 7.61 

Cost of funding earning assets...................... 4.53 4.28 4.35 4.57 4.64 4.19 4.54 4.75 4.86 4.83 4.67 

Net interest margin......................................... 3.25 3.61 3.52 3.40 2.98 3.57 3.74 3.14 2.90 3.18 2.94 

Noninterest income to earning assets............ 0.78 0.80 0.63 0.95 0.77 0.57 1.38 0.94 0.72 1.09 0.74 

Noninterest expense to earning assets.......... 2.33 3.10 2.52 2.50 2.07 2.37 3.34 2.35 2.12 2.43 2.10 

Net operating income to assets..................... 0.86 0.71 0.91 0.96 0.80 0.92 0.76 0.91 0.81 1.08 0.77 

Return on assets............................................ 0.95 0.80 0.98 1.16 0.84 1.00 0.93 1.09 0.68 1.22 0.82 

Return on equity............................................. 11.27 6.95 9.80 13.76 11.52 10.85 9.68 12.08 7.83 14.86 11.46 

Net charge-offs to loans and leases.............. 0.30 0.12 0.16 0.32 0.37 0.35 0.46 0.19 0.17 0.36 0.28 

Loan loss provision to net charge-offs........... 

Growth Rates (year-to-year, %) 

118.58 125.38 139.19 124.23 111.44 103.44 120.72 133.38 107.76 134.69 126.25 

Net interest income........................................ -0.12 - - - - -1.52 -0.70 2.76 -23.98 -14.09 7.99 

Net income..................................................... -8.16 - - - - -5.03 -0.05 4.18 -41.28 -57.62 22.00 

Net charge-offs.............................................. -7.69 - - - - 6.50 35.14 55.37 -18.45 -25.94 -30.02 

Loan loss provision........................................ 

PRIOR SECOND QUARTERS*

 (The way it was . . . ) 

5.97 - - - - 4.10 8.00 30.00 -39.81 20.19 2.12 

Return on assets (%)........................1996 1.03 0.75 0.93 0.96 1.16 1.02 0.88 1.06 0.93 2.33 0.75 

.......................................1994 0.72 0.78 0.81 0.65 0.70 0.86 0.92 0.92 0.03 1.16 0.46 

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

Net charge-offs to loans & leases (%) 

0.55 0.80 0.71 0.61 0.30 0.38 0.73 0.81 1.11 1.28 0.34 

.......................................1996 0.33 0.12 0.18 0.31 0.46 0.32 0.34 0.13 0.18 0.41 0.46 

.......................................1994 0.58 0.14 0.23 0.44 1.02 0.41 0.19 0.10 0.12 0.21 1.11 

.......................................1992 0.63 0.27 0.49 0.64 0.82 0.96 0.37 0.23 0.17 0.31 0.65 

*Data between 1992 and 1994 does not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 

Insurance Fund Reserve Ratios* Fund Balance and Insured Deposits* 

Percent of Insured Deposits ($ Millions) 

BIF Fund BIF-Insured SAIF Fund SAIF-Insured 

Balance Deposits Balance Deposits 

12/90 4,045 1,929,612 18 830,028 

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

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

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

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

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

12/96 26,854 2,008,234 8,888 682,284 

3/97 27,042 2,024,439 9,010 688,229 

6/97 27,389 2,023,939 9,134 690,163 

1.25 

* Insured deposit amounts are estimates. 6/97 fund balances are unaudited. 

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

0.21 

-0.36 

-0.01 

0.69 

1.15 

1.30 1.34 1.34 1.35 

0.00 0.01 0.04 

0.17 

0.28 

0.47 

1.30 1.31 1.32 

SAIF 

BIF 

Target Ratio 
TABLE V-B. Loan Performance, FDIC-Insured Savings Institutions 

June 30, 1997 All 

Institutions 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater 

than $100 to to than $5 

Million $1 Billion $5 Billion Billion 

East 

North- Southeast east Central 

West 

Mid- Southwest west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate.............................. 1.08 1.90 1.17 1.07 0.97 1.17 1.24 1.00 1.42 1.25 0.97

 Construction, development and land.................... 1.59 2.03 1.91 1.59 1.00 1.41 1.64 1.90 3.06 1.11 1.42

 Commercial real estate......................................... 0.98 1.71 1.09 1.12 0.63 1.09 1.06 0.94 1.62 1.12 0.70

 Multifamily residential real estate.......................... 0.46 1.05 0.59 0.50 0.37 0.61 0.60 0.72 0.87 0.33 0.33

 Home equity loans................................................ 1.16 1.97 1.19 1.16 1.08 1.24 1.28 1.01 1.39 1.37 1.11

 Other 1-4 Family residential.................................. 0.69 0.94 0.89 0.65 0.53 0.98 0.33 0.56 0.35 0.11 0.52 

Commercial and industrial loans............................. 1.37 2.31 1.80 1.39 0.77 1.41 1.49 1.91 1.72 0.95 0.92 

Loans to individuals................................................. 1.88 2.50 1.83 2.07 1.71 1.86 3.00 2.07 1.99 1.16 1.58

 Credit card loans................................................... 2.10 2.66 3.63 2.38 1.85 1.86 3.90 2.62 3.44 0.81 3.09

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

Percent of Loans Noncurrent* 

1.80 2.49 1.65 2.02 1.62 1.86 2.53 1.92 1.87 1.49 1.37 

All real estate loans................................................. 1.20 1.03 1.01 1.77 1.05 1.73 0.77 0.68 0.66 1.23 1.15

 Construction, development and land.................... 1.20 1.40 1.27 1.62 0.65 2.16 1.01 1.17 0.82 0.49 1.12

 Commercial real estate......................................... 1.89 1.52 1.48 2.74 1.56 2.66 0.79 0.94 0.48 2.31 1.52

 Multifamily residential real estate.......................... 1.31 1.37 1.08 2.65 0.64 2.73 1.41 0.95 1.11 4.43 0.67

 Home equity loans................................................ 0.35 0.28 0.39 0.39 0.28 0.47 0.18 0.30 0.15 0.15 0.26

 Other 1-4 Family residential.................................. 1.14 0.97 0.95 1.54 1.09 1.54 0.74 0.64 0.66 0.94 1.23 

Commercial and industrial loans............................. 1.48 1.96 1.87 1.58 0.90 1.74 1.44 1.24 2.33 1.71 0.82 

Loans to individuals................................................. 0.97 1.20 0.97 1.06 0.89 1.03 1.43 1.38 0.95 0.57 0.47

 Credit card loans................................................... 1.64 1.59 3.39 1.94 1.35 1.68 2.51 2.65 1.53 0.64 1.62

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

Percent of Loans Charged-off

 (net, annualized) 

0.76 1.18 0.72 0.92 0.57 0.87 0.86 1.03 0.90 0.50 0.31 

All real estate loans................................................. 0.14 0.05 0.06 0.15 0.19 0.17 0.03 0.03 -0.03 0.10 0.22

 Construction, development and land.................... 0.10 0.25 0.14 0.06 0.02 0.18 -0.02 0.11 0.17 0.05 0.11

 Commercial real estate......................................... 0.13 0.11 0.09 0.15 0.17 0.16 0.11 0.07 0.08 0.09 0.15

 Multifamily residential real estate.......................... 0.24 0.11 0.16 0.32 0.23 0.12 0.06 0.02 0.22 0.09 0.35

 Home equity loans................................................ 0.20 0.08 0.11 0.24 0.25 0.16 0.02 0.09 0.26 0.02 0.49

 Other 1-4 Family residential.................................. 0.13 0.03 0.04 0.12 0.19 0.18 0.02 0.02 -0.07 0.11 0.20 

Commercial and industrial loans............................. 0.34 0.65 0.53 0.30 0.17 0.36 0.70 0.36 0.59 0.50 0.01 

Loans to individuals................................................. 2.13 0.54 0.91 2.51 2.68 2.08 3.58 2.49 0.88 1.61 1.68

 Credit card loans................................................... 5.27 0.80 4.28 10.13 4.49 4.64 8.38 10.62 2.96 1.99 5.21

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

Loans Outstanding (in billions) 

1.12 0.53 0.56 1.42 1.38 1.47 1.05 0.64 0.69 1.21 1.18 

All real estate loans................................................. $629.4 $26.2 $162.0 $138.3 $303.0 $184.2 $39.6 $112.5 $26.3 $31.7 $235.1

 Construction, development and land.................... 19.1 1.2 8.0 4.7 5.2 3.8 3.4 4.2 0.9 3.2 3.5

 Commercial real estate......................................... 48.8 2.1 16.9 14.9 14.9 21.0 3.8 6.1 1.7 2.8 13.3

 Multifamily residential real estate.......................... 58.2 0.9 10.1 16.8 30.4 13.0 1.0 7.5 0.9 1.9 34.0

 Home equity loans................................................ 17.0 0.6 5.4 4.6 6.5 7.0 1.4 4.4 0.6 0.3 3.3

 Other 1-4 Family residential.................................. 486.1 21.4 121.5 97.2 246.1 139.2 30.0 90.4 22.1 23.3 181.0 

Commercial and industrial loans............................. 15.3 0.7 4.4 4.9 5.4 7.2 1.3 2.2 0.5 1.0 3.0 

Loans to individuals................................................. 46.8 1.9 10.9 13.5 20.6 14.9 5.2 9.1 2.4 7.4 7.9

 Credit card loans................................................... 11.4 0.1 1.0 1.9 8.4 2.9 1.8 1.9 0.2 3.6 0.9

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

Memoranda: 

Other Real Estate Owned (in millions)** 

35.4 1.8 9.9 11.6 12.2 12.0 3.4 7.2 2.2 3.8 6.9 

All other real estate owned..................................... $2,242.0 $65.6 $534.1 $649.1 $993.0 $625.9 $215.1 $196.1 $67.4 $203.6 $933.9

 Construction, development and land.................... 302.3 9.6 97.9 52.1 142.7 69.9 135.0 14.7 10.7 15.0 57.0

 Commercial real estate......................................... 428.5 13.7 137.7 182.3 94.8 195.6 35.1 62.2 28.3 27.4 79.9

 Multifamily residential real estate.......................... 344.4 1.7 32.2 174.8 135.7 54.2 2.8 10.1 1.7 101.0 174.5

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

Troubled Real Estate Asset Rates***

 (% of total RE assets) 

1,232.3 41.7 279.0 256.8 654.8 320.6 58.3 112.6 29.9 63.1 647.8 

All real estate loans................................................. 1.55 1.28 1.34 2.23 1.37 2.06 1.30 0.86 0.92 1.86 1.54

 Construction, development and land.................... 2.74 2.20 2.47 2.69 3.32 3.91 4.77 1.52 1.95 0.94 2.72

 Commercial real estate......................................... 2.76 2.18 2.27 3.95 2.18 3.57 1.70 1.94 2.09 3.33 2.11

 Multifamily residential real estate.......................... 1.89 1.56 1.40 3.65 1.08 3.13 1.71 1.08 1.29 9.17 1.18

 1-4 Family residential............................................ 1.36 1.13 1.14 1.73 1.33 1.71 0.90 0.74 0.78 1.19 1.56 

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

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

***Noncurrent real estate loans plus other real estate owned as a percent of total real estate loans plus OREO. 
ALL FDIC-INSURED INSTITUTIONS 

• For The Third Consecutive Quarter, No Insured Institutions Fail 

• Reserve Ratios Climb To 1.35 Percent For BIF And 1.32 Percent For SAIF 

• Consolidations And Conversions Fuel Growth Of Oakars And Sassers 

No insured institutions failed during the second quarter 

of 1997, marking the third consecutive quarter without 

a failure. The most recent bank and thrift failures 

occurred in August 1996. In the past eight quarters, 

just seven members of the Bank Insurance Fund (BIF) 

and one member of the Savings Association Insurance 

Fund (SAIF) failed. 

BIF members' total deposits increased by $82 billion, 

or 2.4 percent, during the second quarter, with the 

largest part of the increase coming from large, 

uninsured domestic deposits, which were up $49 

billion. Foreign-office deposits, which are also 

uninsured, grew by $28 billion during the quarter. 

Estimated insured deposits held by BIF members 

increased by $5 billion, but this was attributable to 

growth of their SAIF-insured Oakar deposits (see 

below), which grew by $7 billion. 

Total BIF-insured deposits, including the BIF-insured 

Oakar deposits held by SAIF members, actually 

declined by $500 million in the second quarter. This 

drop in insured deposits, when combined with the 

$347 million increase in the insurance fund balance 

from March to June, resulted in the BIF reserve ratio 

rising by 1 basis point, to 1.35 percent of insured 

deposits. At its present level, the BIF reserve ratio is 

higher than any year-end level since 1966, when the 

ratio stood at 1.39 percent. The current law has 

premium refund provisions for periods when the 

reserve ratio exceeds the statutory target of 1.25 

percent, but since 95 percent of all BIF members 

presently pay no deposit insurance premiums, refunds 

are not permissible under the law. The $27.4 billion BIF 

now exceeds the 1.25 percent target by $2.1 billion. 

The total deposits of SAIF members declined by $3 

billion, or 0.6 percent, from March to June. However, 

SAIF-insured deposits and the SAIF assessment 

base, which include the portions held by BIF members, 

increased by $1.9 billion and $2.7 billion, respectively. 

The SAIF balance increased at a slightly faster rate 

than did SAIF-insured deposits, moving the reserve 

ratio up from 1.31 percent on March 31 to 1.32 percent 

on June 30. The SAIF balance of $9.1 billion is about 

$500 million above the statutory requirement, but the 

current law has no refund provisions for SAIF 

members. 

Oakars and Sassers. Oakar deposits are those 

acquired by a member of one insurance fund from a 

member of the other fund. These deposits remain 

insured by the seller's fund. Sasser institutions are 

primarily former savings and loan associations that 

convert to a commercial or savings bank charter. By 

remaining members of the SAIF, they avoid costly exit 

and entrance fees. Holding company consolidations 

and charter conversions during the second quarter 

greatly affected the numbers and deposits of Oakars 

and Sassers and further fractionalized the SAIF 

assessment base. Twenty-six new BIF-member 

Oakars were created, but mergers reduced the 

overall number from 804 to 777. Their SAIFassessable deposits increased from $224 billion to 

$231 billion. There were 14 new Sassers in the second 

quarter, increasing their number to 339. Their SAIFassessable deposits rose from $58 billion to $65 

billion. As of June 30, commercial banks held 27.5 

percent of the SAIF assessment base, state-chartered 

savings banks held 8.2 percent, SAIF-member 

savings associations owned by bank holding 

companies held 6.0 percent, and BIF-member federal 

savings banks held 5.5 percent. In all, BIF members 

and banking companies controlled 47.2 percent of the 

SAIF deposit base. 

FICO bonds. All insured institutions are required to 

pay quarterly amounts to the Financing Corporation 

(FICO) to cover the FICO's annual bond interest of 

$793 million. For the first half of 1997, the annualized 

FICO assessment rates were set at 6.48 basis points 

for SAIF-assessable deposits and 1.30 basis points for 

BIF-assessable deposits. Because of growth in the 

combined assessment bases, the rates for the second 

half of 1997 declined slightly, to 6.30 basis points for 

SAIF and 1.26 basis points for BIF. Further downward 

adjustments may be made to account for the FICO's 

investment earnings. 

FDIC Quarterly Banking Profile 

Second Quarter 1997 15 All FDIC-Insured Institutions 
 

 

 

 

 

Estimated FDIC-Insured Deposits by Fund Membership and Type of Institution 

June 30, 1997* 

(dollar figures in millions) Number of 

Institutions 

Total 

Assets 

Domestic 

Deposits** 

Estimated Insured Deposits 

BIF SAIF Total 

Private-Sector Commercial and Savings Institutions 

FDIC-Insured Commercial Banks......................................... 9,308 4,771,162 2,775,362 1,843,023 193,666 2,036,690 

BIF-member.................................................................. 9,212 4,724,729 2,741,406 1,832,074 176,737 2,008,811 

SAIF-member................................................................ 96 46,433 33,955 10,949 16,930 27,879 

FDIC-Insured Savings Institutions....................................... 1,852 1,030,074 720,040 179,340 496,497 675,837 

OTS-Supervised Savings Institutions......................... 1,270 770,160 521,377 50,046 439,344 489,390 

BIF-member.............................................................. 32 123,003 81,030 37,468 38,818 76,286 

SAIF-member.......................................................... 1,238 647,157 440,347 12,578 400,526 413,104 

FDIC-Supervised State Savings Banks......................... 582 259,914 198,663 129,294 57,153 186,447 

BIF-member.............................................................. 339 198,988 153,203 128,234 14,937 143,171 

SAIF-member........................................................... 243 60,926 45,460 1,060 42,215 43,276 

Total Private-Sector Commercial and 

Savings Institutions........................................................ 11,160 5,801,236 3,495,401 2,022,364 690,163 2,712,527 

BIF-member......................................................................... 9,583 5,046,720 2,975,640 1,997,776 230,492 2,228,268 

SAIF-member......................................................................... 1,577 754,516 519,762 24,588 459,671 484,259 

Other FDIC-Insured Institutions........................ 

U.S. Branches of Foreign Banks......................... 31 8,497 2,844 1,576 0 1,576 

Total FDIC-Insured Institutions............................ 11,191 5,809,733 3,498,245 2,023,939 690,163 2,714,103 

* Excludes one self-liquidating savings institution with less than $1 million in SAIF-insured deposits. 

**Excludes $504.2 billion in foreign office deposits, which are uninsured. 

SAIF Assesment Base 

December 31, 1989 - June 30, 1997 

$ Billions 

1,000 

0 

($ Billions) 

Sasser Institutions 0.0 2.8 11.9 28.4 42.8 52.0 56.2 57.2 58.4 64.5

Oakar Deposits (BIF-members) 2.1 34.0 69.8 80.5 139.9 181.9 220.1 216.8 223.7 231.1

RTC Conservatorships 89.0 67.3 36.9 31.2 17.7 1.2 0.0 0.0 0.0 0.0

All Other Institutions 851.6 766.0 693.2 615.2 520.3 479.2 459.0 434.0 432.9 422.1

Total 942.8 870.0 811.7 755.3 720.7 714.4 735.3 707.9 715.0 717.7 

Sasser Institutions 

Oakar Deposits 

(BIF-members) 

RTC Conservatorships 

All Other Institutions

12/89 12/90 12/91 12/92 12/93 12/94 12/95 12/96 03/97 06/97 
 

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

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

Number of institutions reporting...................................... 11,160 11,670 11,452 11,970 12,603 13,220 

Total assets..................................................................... $5,801,236 $5,420,002 $5,606,587 $5,338,423 $5,019,085 $4,707,056 

Total deposits.................................................................. 3,999,599 3,788,900 3,925,066 3,769,481 3,611,619 3,528,486 

Number of problem institutions....................................... 103 137 117 193 318 572 

Assets of problem institutions (in billions)....................... $8 $18 $12 $31 $73 $334 

Number of failed/assisted institutions............................. 0 3 6 8 15 50 

Assets of failed/assisted institutions (in billions)............. $0.00 $0.14 $0.22 $1.21 $1.57 $9.67 

**As of June 30. 

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

(dollar figures in millions) 

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

Preliminary 

2nd Quarter 1st Quarter 2nd Quarter % Change 

1997 1997 1996 96:2-97:2 

11,160 11,337 11,670 -4.4 

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

CONDITION DATA 

1,761,693 1,747,094 1,740,627 1.2 

Total assets............................................................................. $5,801,236 $5,663,942 $5,420,002 7.0

 Loans secured by real estate............................................ 1,823,967 1,782,532 1,723,773 5.8

 1-4 Family residential.................................................... 1,193,535 1,165,735 1,121,895 6.4

 Home equity loans....................................................... 109,553 105,015 98,786 10.9

 Multifamily residential property...................................... 97,956 97,658 96,338 1.7

 Commercial real estate................................................. 376,009 368,093 356,883 5.4

 Construction, development and land............................. 101,546 96,709 95,848 5.9

 Other real estate loans.................................................. 54,920 54,338 52,809 4.0

 Commercial & industrial loans........................................... 770,447 746,909 698,830 10.2

 Loans to individuals........................................................... 604,565 589,858 580,034 4.2

 Credit cards & related plans............................................ 236,669 227,100 219,637 7.8

 Other loans & leases......................................................... 366,610 348,582 371,961 -1.4

 Less: Unearned income & contra accounts...................... 5,382 5,381 16,242 -66.9

 Total loans & leases............................................................ 3,560,207 3,462,502 3,358,356 6.0

 Less: Reserve for losses..................................................... 61,397 60,476 60,824 0.9

 Net loans & leases................................................................ 3,498,810 3,402,025 3,297,532 6.1

 Securities .............................................................................. 1,078,709 1,071,204 1,085,958 -0.7

 Other real estate owned........................................................ 6,622 6,996 8,306 -20.3

 Goodwill and other intangibles.............................................. 67,166 64,338 50,981 31.7

 All other assets...................................................................... 1,149,929 1,119,378 977,226 17.7 

Total liabilities and capital....................................................... 5,801,236 5,663,939 5,420,002 7.0

 Deposits................................................................................ 3,999,599 3,920,539 3,788,900 5.6

 Other borrowed funds............................................................ 995,922 949,955 886,617 12.3

 Subordinated debt................................................................. 56,769 54,695 50,220 13.0

 All other liabilities................................................................... 258,338 263,217 243,523 6.1

 Equity capital......................................................................... 490,609 475,533 450,742 8.8 

Loans and leases 30-89 days past due.................................. 43,074 46,928 42,106 2.3 

Noncurrent loans and leases.................................................. 36,856 38,000 39,096 -5.7 

Restructured loans and leases................................................ 7,387 7,863 8,610 -14.2 

Direct and indirect investments in real estate......................... 1,212 1,247 1,210 0.2 

Mortgage-backed securities.................................................... 536,387 533,407 539,858 -0.6 

Earning assets......................................................................... 5,093,833 4,977,480 4,765,811 6.9 

Unused loan commitments...................................................... 

Including IBA's:***

2,943,033 2,801,947 2,477,815 18.8 

 Estimated BIF-insured deposits........................................... 2,023,939 2,024,439 1,958,008 3.4

 Assessment base.............................................................. 2,679,804 2,636,002 2,494,690 7.4

 BIF balance (unaudited figures)........................................ 27,389 27,042 25,828 6.0

 BIF reserve ratio (%)......................................................... 1.35 1.34 1.32 2.6

 Estimated SAIF-insured deposits......................................... 690,163 688,229 713,125 -3.2

 Assessment base.............................................................. 717,731 714,981 736,419 -2.5

 SAIF balance (unaudited figures)...................................... 9,134 9,010 3,914 133.4

 SAIF reserve ratio (%)....................................................... 1.32 1.31 0.55 141.1

 Estimated FDIC-insured deposits, BIF and SAIF................. 2,714,103 2,712,668 2,671,133 1.6 

INCOME DATA 

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

Preliminary Preliminary 

First Half First Half 2nd Quarter 2nd Quarter %Change 

1997 1996 %Change 1997 1996 96:2-97:2 

$201,116 $189,582 6.1 $102,388 $95,525 7.2 

Total interest expense........................................... 100,230 95,081 5.4 51,248 47,377 8.2

 Net interest income............................................. 100,886 94,501 6.8 51,140 48,148 6.2 

Provision for loan losses....................................... 10,455 8,889 17.6 5,583 4,799 16.3 

Total noninterest income....................................... 53,499 49,784 7.5 27,126 26,138 3.8 

Total noninterest expense..................................... 92,753 90,119 2.9 46,963 44,992 4.4 

Securities gains (losses)....................................... 1,250 1,073 16.4 597 261 129.0 

Applicable income taxes....................................... 18,613 15,847 17.5 9,304 8,372 11.1 

Extraordinary gains, net........................................ 34 92 -62.6 27 21 30.2

 Net income.......................................................... 33,848 30,595 10.6 17,041 16,404 3.9 

*Excludes institutions in RTC conservatorship, one self-liquidating savings institution, insured branches of foreign banks (IBA's), unless indicated otherwise. 

***Reserve ratios reflect the insurance fund balance as a percentage of estimated insured deposits. 
TABLE I-D. Selected Indicators, BIF-Member Depository Institutions* 

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

Number of institutions reporting...................................... 9,583 9,987 9,822 10,242 10,759 11,291 

Total assets..................................................................... 5,046,720 4,666,261 4,855,816 4,576,266 4,246,786 3,949,695 

Total deposits.................................................................. 3,479,546 3,260,842 3,402,648 3,224,307 3,061,457 2,951,979 

Number of problem institutions....................................... 75 103 86 151 264 472 

Assets of problem institutions (in billions)....................... $5 $11 $7 $20 $42 $269 

Number of failed/assisted institutions............................. 0 3 5 6 13 41 

Assets of failed/assisted institutions (in billions)............. $0.00 $0.14 $0.19 $0.76 $1.43 $3.54 

**As of June 30. 

TABLE II-D. Selected Aggregate Condition and Income Data, BIF-Member Depository Institutions* 

(dollar figures in millions) 

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

Preliminary 

2nd Quarter 1st Quarter 2nd Quarter % Change 

1997 1997 1996 96:2-97:2 

9,583 9,735 9,987 -4.0

 Commercial banks................................................................. 9,212 9,362 9,605 -4.1

 Savings institutions................................................................ 371 373 382 -2.9 

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

CONDITION DATA 

1,569,193 1,554,639 1,543,888 1.6 

Total assets............................................................................. $5,046,720 $4,915,629 $4,666,261 8.2

 Loans secured by real estate, total....................................... 1,361,632 1,322,372 1,259,959 8.1

 1-4 Family residential.......................................................... 819,696 794,253 753,770 8.7

 Multifamily residential property............................................ 61,452 60,319 57,957 6.0

 Commercial real estate....................................................... 341,162 333,248 321,898 6.0

 Construction, development and land................................... 84,624 80,408 73,690 14.8

 Commercial & industrial loans............................................... 757,984 734,754 688,464 10.1

 Reserve for losses............................................................... 56,603 55,610 55,750 1.5

 Total deposits........................................................................ 3,479,546 3,397,152 3,260,842 6.7

 Domestic deposits................................................................. 2,975,640 2,921,514 2,798,870 6.3

 Estimated insured deposits................................................... 2,228,268 2,223,000 2,173,901 2.5

 BIF-insured deposits (estimated)........................................ 1,997,776 1,999,536 1,935,675 3.2

 SAIF-insured deposits (estimated)...................................... 230,492 223,464 238,225 -3.2

 Noncurrent loans and leases................................................ 30,836 31,566 33,002 -6.6

 Other real estate owned........................................................ 4,855 5,246 6,199 -21.7

 Equity capital......................................................................... 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions:

426,980 413,903 387,951 10.1 

 Well capitalized..................................................................... 9,396 9,564 9,852 -4.6

 Adequately capitalized.......................................................... 174 158 116 50.0

 Undercapitalized.................................................................... 7 5 13 -46.2

 Significantly undercapitalized................................................ 6 6 3 100.0

 Critically undercapitalized...................................................... 

Total assets:

0 2 3 0.0 

 Well capitalized..................................................................... $5,014,929 $4,880,466 $4,649,349 7.9

 Adequately capitalized.......................................................... 31,198 33,717 15,286 104.1

 Undercapitalized.................................................................... 243 770 1,247 -80.5

 Significantly undercapitalized ............................................... 350 597 230 52.1

 Critically undercapitalized...................................................... 0 78 148 0.0 

INCOME DATA 

Preliminary Preliminary 

First Half First Half 2nd Quarter 2nd Quarter %Change 

1997 1996 %Change 1997 1996 96:2-97:2 

Net interest income............................................... $89,784 $83,365 7.7 $45,521 $42,483 7.2 

Provision for loan losses....................................... 9,642 8,062 19.6 5,176 4,388 17.9 

Net income............................................................ 30,312 26,727 13.4 15,221 14,416 5.6 

Net charge-offs...................................................... 8,691 7,584 14.6 4,530 3,926 15.4 

Number of institutions reporting net losses........... 370 345 7.2 397 404 -1.7 

*Excludes insured branches of foreign banks. 
TABLE I-E. Selected Indicators, SAIF-Member Depository Institutions* 

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

Number of institutions reporting...................................... 1,577 1,683 1,630 1,728 1,844 1,929 

Total assets..................................................................... 754,516 753,741 750,771 762,157 772,299 757,362 

Total deposits.................................................................. 520,053 528,057 522,419 545,174 550,162 576,507 

Number of problem institutions....................................... 28 34 31 42 54 100 

Assets of problem institutions (in billions)....................... $3 $7 $6 $11 $31 $65 

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

Assets of failed/assisted institutions (in billions)............. $0.00 $0.00 $0.03 $0.46 $0.14 $6.00 

**As of June 30. 

TABLE II-E. Selected Aggregate Condition and Income Data, SAIF-Member Depository Institutions* 

(dollar figures in millions) 

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

Preliminary 

2nd Quarter 1st Quarter 2nd Quarter % Change 

1997 1997 1996 96:2-97:2 

1,577 1,602 1,683 -6.3

 Commercial banks................................................................. 96 89 85 12.9

 Savings institutions................................................................ 1,481 1,513 1,598 -7.3 

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

CONDITION DATA 

192,500 192,455 196,739 -2.2 

Total assets............................................................................. $754,516 $748,313 $753,741 0.1

 Loans secured by real estate, total....................................... 462,335 460,160 463,814 -0.3

 1-4 Family residential.......................................................... 373,839 371,482 368,125 1.6

 Multifamily residential property............................................ 36,504 37,339 38,381 -4.9

 Commercial real estate....................................................... 34,847 34,845 34,986 -0.4

 Construction, development and land................................... 16,923 16,301 22,158 -23.6

 Commercial & industrial loans............................................... 12,463 12,155 10,366 20.2

 Reserve for losses............................................................... 4,794 4,867 5,074 -5.5

 Total deposits........................................................................ 520,053 523,387 528,057 -1.5

 Domestic deposits................................................................. 519,762 523,154 527,998 -1.6

 Estimated insured deposits................................................... 484,259 488,044 495,606 -2.3

 BIF-insured deposits (estimated)........................................ 24,588 23,279 20,707 18.7

 SAIF-insured deposits (estimated)...................................... 459,671 464,765 474,899 -3.2

 Noncurrent loans and leases................................................ 6,020 6,434 6,094 -1.2

 Other real estate owned........................................................ 1,766 1,750 2,107 -16.2

 Equity capital......................................................................... 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions:

63,629 61,630 62,791 1.3 

 Well capitalized..................................................................... 1,549 1,549 1,646 -5.9

 Adequately capitalized.......................................................... 25 49 30 -16.7

 Undercapitalized.................................................................... 1 2 6 -83.3

 Significantly undercapitalized................................................ 1 1 0 0.0

 Critically undercapitalized...................................................... 

Total assets:

1 1 1 0.0 

 Well capitalized..................................................................... $741,551 $732,944 $736,680 0.7

 Adequately capitalized.......................................................... 12,680 15,058 16,588 -23.6

 Undercapitalized.................................................................... 48 98 440 -89.2

 Significantly undercapitalized ............................................... 27 203 0 0.0

 Critically undercapitalized...................................................... 210 10 33 544.6 

INCOME DATA 

Preliminary Preliminary 

First Half First Half 2nd Quarter 2nd Quarter %Change 

1997 1996 %Change 1997 1996 96:2-97:2 

Net interest income............................................... $11,102 $11,135 -0.3 $5,619 $5,665 -0.8 

Provision for loan losses....................................... 813 827 -1.7 407 410 -0.8 

Net income............................................................ 3,536 3,868 -8.6 1,820 1,988 -8.5 

Net charge-offs...................................................... 689 737 -6.6 372 390 -4.7 

Number of institutions reporting net losses........... 61 90 -32.2 63 83 -24.1 

*Data between 1993 and 1995 do not include Resolution Trust Corporation conservatorships. Excludes one self-liquidating institution. 
Number of FDIC-Insured "Problem" Institutions 

1992 - 1997 

Number of Institutions 

Savings Institutions 

Commercial Banks 

0 

500 

1,000 

1,500 

1,063 

572 

318 286 254 217 193 169 137 125 117 112 103 

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

Savings Institutions 276 146 71 71 64 59 49 42 38 36 35 35 29 

Commercial Banks 787 426 247 215 190 158 144 127 99 89 82 77 74 

Assets of FDIC-Insured "Problem" Institutions 

1992 - 1997 

$ Billions 

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

Savings Institutions 184 92 39 39 33 17 14 13 10 8 7 5 3 

Commercial Banks 408 242 33 27 23 20 17 13 8 7 5 5 5 

Savings Institutions 

Commercial Banks 

0 

200 

400 

600 

800 

$592 

$334 

$72 $66 $56 $37 $31 $27 $18 $15 $12 $10 $8 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 20 Second Quarter 1997 
NOTES TO USERS 

This publication contains financial data and other information 

for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding the 

comparability of source data and reporting differences over 

time. The information presented in the FDIC Quarterly Banking Profile is divided into the following groups of institutions: 

FDIC-Insured Commercial Banks 

(Tables I-A through V-A.) 

This section covers commercial banks insured by the FDIC 

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

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

the three federal commercial bank regulators (the Board of 

Governors of the Federal Reserve System, the FDIC or the 

Office of the Comptroller of the Currency). 

FDIC-Insured Savings Institutions 

(Tables I-B through V-B.) 

This section covers savings institutions insured by either BIF 

or SAIF that operate under state or federal banking codes 

applicable to thrift institutions, except for one self-liquidating 

institution primarily funded by the FSLIC Resolution Fund 

(FRF). Savings institutions in Resolution Trust Corporation 

conservatorships are also excluded from these tables while 

in conservatorship. The institutions covered in this section 

are regulated by and submit financial reports to one of two 

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

FDIC-Insured Institutions by Insurance Fund 

(Tables I-C through II-E.) 

Summary balance-sheet and earnings data are provided for 

commercial banks and savings institutions according to 

insurance fund membership. BIF-member institutions may 

acquire SAIF-insured deposits, resulting in institutions with 

some deposits covered by both insurance funds. Also, SAIF 

members may acquire BIF-insured deposits. The insurance 

fund membership does not necessarily reflect which fund 

insures the largest percentage of an institution's deposits. 

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

each include deposits from both insurance funds. Depository 

institutions that are not insured by the FDIC through either the 

BIF or SAIF are not included in the FDIC Quarterly Banking 

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

countries and non-deposit trust companies are not included 

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

final financial reports are not available for institutions that 

have closed or converted their charter. 

DATA SOURCES 

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Call Reports and the OTS 

Thrift Financial Reports submitted by all FDIC-insured 

depository institutions. This information is stored on and 

retrieved from the FDIC's Research Information System 

(RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting and 

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

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

was prohibited. Now, parent institutions file consolidated 

reports, while their subsidiary financial institutions continue to 

file separate reports. Data from subsidiary institution reports 

are included in the Quarterly Banking Profile tables, which 

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

any double-counting of subsidiary data. 

All asset and liability figures used in calculating performance 

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

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

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

includes the results of all merged institutions. No adjustments 

are made for “purchase accounting” mergers. Growth rates 

represent the percentage change over a 12-month period in 

totals for institutions in the base period to totals for institutions 

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

rates for the “Asset Size Distribution” since many institutions 

migrate between size groups. 

All data are collected and presented based on the location of 

each reporting institution's main office. Reported data may 

include assets and liabilities located outside of the reporting 

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

to another region, no adjustments are made to regional 

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

institutions can convert to commercial banks or commercial 

banks may convert to savings institutions. These situations 

can affect state and regional statistics. 

RECENT ACCOUNTING CHANGES 

Adoption of GAAP Reporting – Effective with the March 31, 

1997 Call Reports, generally accepted accounting principles 

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

sheet, income statement and supporting schedules. New 

reporting instructions changed the amounts reported for a 

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

comparability with prior periods may be affected. Among the 

items most significantly affected by the new reporting rules 

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

intangibles, all other assets and equity capital (see definitions 

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

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

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

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

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

changes to the March 31, 1997 Thrift Financial Reports is 

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

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

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

allow financial institutions to elect Subchapter S corporation 

status, beginning in 1997. A Subchapter S corporation is 

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

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

federal income taxes at the corporate level. Its taxable 

FDIC Quarterly Banking Profile 

First Quarter 1997 21 Notes to Users 
income flows through to its shareholders in proportion to their 

stock ownership, and the shareholders generally pay federal 

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

have the effect of reducing institutions’ reported taxes and 

increasing their after-tax earnings. 

The election of Subchapter S status may result in an increase 

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

dividends to compensate for higher personal taxes. 

DEFINITIONS (in alphabetical order) 

All other assets – total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

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

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

Federal funds sold are reported on a consolidated basis 

(domestic and foreign offices combined). Previously, Federal 

funds sold through foreign offices were reported as loans. 

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

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

in accounts of less than $100,000 insured by the BIF. For 

SAIF-member “Oakar” institutions, it represents the adjusted 

attributable amount acquired from BIF members. 

Capital category distribution – each institution's capital 

category is calculated or estimated from its financial report 

and does not reflect supervisory upgrades or downgrades: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) Capital * Capital * Leverage Equity 

Well-capitalized ≥10 and ≥6 and ≥5 — 

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. 

Construction and development loans – includes loans for 

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

acquisition and development. 

Core capital – common equity capital plus noncumulative 

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

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

Cost of funding earning assets – total interest expense 

paid on deposits and other borrowed money as a percentage 

of average earning assets. 

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

which a contract could be exchanged in a transaction 

between willing parties, other than in a forced or liquidation 

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

fair value reported for that contract is calculated using this 

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

reporting banks use the best estimate of fair value based on 

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

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

Direct and indirect investments in real estate – excludes 

loans secured by real estate and property acquired through 

foreclosure. 

Earning assets – all loans and other investments that earn 

interest or dividend income. 

Estimated insured deposits – estimated amount of insured 

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

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

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

multiplied by $100,000. 

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

liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the FDIC 

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

“assisted” when the institution remains open and receives 

some insurance funds in order to continue operating. 

FHLB advances – borrowings from the Federal Home Loan 

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

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

Goodwill and other intangibles – intangible assets include 

servicing rights, purchased credit card relationships and 

other identifiable intangible assets. 

Loans secured by real estate – includes home equity loans, 

junior liens secured by 1-4 family residential properties and 

all other loans secured by real estate. 

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

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

with remaining maturities or repricing intervals of over five 

years. 

Mortgage-backed securities – certificates of participation in 

pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored 

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

Net charge-offs – total loans and leases charged off 

(removed from balance sheet because of uncollectibility), 

less amounts recovered on loans and leases previously 

charged off. 

Net interest margin – the difference between interest and 

dividends earned on interest-bearing assets and interest paid 

to depositors and other creditors, expressed as a percentage 

of average earning assets. No adjustments are made for 

interest income that is tax exempt. 

Net operating income – income excluding discretionary 

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

the portion applicable to securities gains (or losses). 

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

nonaccrual status. 

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. 

FDIC Quarterly Banking Profile 

Notes to Users 22 First Quarter 1997 
Off-balance-sheet derivatives – represents the sum of the 

following: interest-rate contracts (defined as the notional 

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

contracts). 

Futures and forward contracts – a contract in which the 

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

specified future date, a specific quantity of underlying at a 

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

underlyings, including the traditional agricultural or physical 

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

exchanges which set limits on counterparty credit exposure. 

Forward contracts do not have standardized terms and are 

traded over the counter. 

Option contracts – a contract in which the buyer acquires 

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

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

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

the contract. 

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

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

or determined for each settlement date by multiplying the 

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

exchanged. 

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

issued to the U.S. Treasury, other borrowed money, mortgage indebtedness, obligations under capitalized leases and 

trading liabilities, less revaluation losses on assets held in 

trading accounts. 

Other real estate owned – primarily foreclosed property. 

Direct and indirect investments in real estate ventures are 

excluded. The amount is reflected net of valuation allowances. For institutions that file a Thrift Financial Report 

(TFR), the valuation allowance subtracted also includes 

allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported 

gross of valuation allowances. 

Percent of institutions with earnings gains – the percent 

of institutions that increased their net income (or decreased 

their losses) compared to the same period a year earlier. 

“Problem” institutions – federal regulators assign a composite rating to each financial institution, based upon an 

evaluation of financial and operational criteria. The rating is 

based on a scale of 1 to 5 in ascending order of supervisory 

concern. “Problem” institutions are those institutions with 

financial, operational, or managerial weaknesses that 

threaten their continued financial viability. Depending upon 

the degree of risk and supervisory concern, they are rated 

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

SAIF-member institutions for which the FDIC is the primary 

federal regulator, FDIC composite ratings are used. For all 

SAIF-member institutions whose primary federal regulator is 

the OTS, the OTS composite rating is used. 

Reserves for losses – the allowance for loan and lease 

losses and the allocated transfer risk reserve on a consolidated basis. Prior to March 31, 1997, institutions filing a Thrift 

Financial Report (TFR) included specific reserves, while Call 

Report filers included only general valuation allowances. 

Beginning March 31, 1997, TFR reporters net these specific 

reserves against each loan balance. Also beginning March 

31, 1997, the allowance for off-balance-sheet credit exposures was moved to “Other liabilities”; previously, it had been 

included in the general valuation allowance. 

Restructured loans and leases – loan and lease financing 

receivables with terms restructured from the original contract. 

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

Return on assets – net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total assets. The basic yardstick of bank profitability. 

Return on equity – net income (including gains or losses on 

securities and extraordinary items) as a percentage of average total equity capital. 

Risk-weighted assets – assets adjusted for risk-based capital definitions which include on-balance-sheet as well as offbalance-sheet items multiplied by risk-weights that range 

from zero to 100 percent. A conversion factor is used to 

assign a balance sheet equivalent amount for selected offbalance-sheet accounts. 

SAIF-insured deposits (estimated) – the amount of deposits in accounts of less than $100,000 insured by the SAIF. For 

BIF-member “Oakar” institutions, it represents the adjusted 

attributable amount acquired from SAIF members. 

Securities – excludes securities held in trading accounts. 

Banks' securities portfolios consist of securities designated 

as “held-to-maturity”, which are reported at amortized cost 

(book value), and securities designated as “available-forsale”, reported at fair (market) value. 

Securities gains (losses) – realized gains (losses) on heldto-maturity and available-for-sale securities, before adjustments for income taxes. Thrift Financial Report (TFR) filers 

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

sale. 

Troubled real estate asset rate – noncurrent real estate 

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

estate loans and other real estate owned. 

Unearned income & contra accounts – unearned income 

and loans-in-process for TFR filers. Beginning March 31 

1997, TFR filers net the unearned income and the loans-inprocess against each loan balance, leaving just the unearned 

income on loans reported by Call Report filers. 

Unused loan commitments – includes credit card lines, 

home equity lines, commitments to make loans for construction, loans secured by commercial real estate, and unused 

commitments to originate or purchase loans. 

Volatile liabilities – the sum of large-denomination time 

deposits, foreign-office deposits, federal funds purchased, 

securities sold under agreements to repurchase, and other 

borrowings. 

Yield on earning assets – total interest, dividend and fee 

income earned on loans and investments as a percentage of 

average earning assets. 

FDIC Quarterly Banking Profile 

First Quarter 1997 23 Notes to Users