Second Quarter, 1994 

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 

The FDIC 

uarte r lI______A_n_dr_ew_c_._H_ov_e,_J_r.,_C_ha_ir_m_a_nanking B~ofile 

COMMERCIAL BANKING PERFORMANCE - SECOND QUARTER, 1994 

• Banks Report $11.2 Billion In Second-Quarter Earnings 

• Wider Margins, Strong Loan Growth Help Lift Profits 

• First-Half Net Income Sets New Record 

• Troubled Assets Continue To Decline 

A strengthening economy was evident in low loan 

losses and robust loan growth in the second quarter of 

1994. Insured commercial banks earned $11 .2 billion in 

the quarter, a $141-million improvement over the previous quarter and $876 million more than banks earned 

a year earlier. This is the second-highest quarterly total 

ever reported, after the $11.5 billion earned in the third 

quarter of 1993. For the first six months of 1994, commercial banks have earned $22.3 billion, the highest 

total ever reported for any six-month period, and $1 .2 

billion more than they earned in the first half of 1993. 

Increased net interest income and low loan-loss provisions outweighed diminished noninterest income and 

lower nonrecurring gains in lifting banks' earnings in the 

second quarter. The average return on assets (ROA) for 

the industry was 1.16 percent, down slightly from the 

1.17 percent averages registered in the previous and 

year-ago quarters. For the second consecutive quarter, 

more than 95 percent of all commercial banks were 

profitable. 

Chart A - Quarterly Net Income of FDIC-Insured 

Commercial Banks, 1990 -1994 

BiUlons of Dollars 

15 D Net Operating Income 

■ Securities and Other Gains, Net 

1900 1991 1992 1993 1994 

Net interest income in the second quarter was $36.5 

billion, more than $1.6 billion (4.6 percent) higher than 

a year ago. However, because earning assets were 5.7 

percent above the level of a year ago, the average net 

interest margin declined seven basis points from a year 

earlier. Banks set aside $2 .8 billion in loan-loss 

provisions in the second quarter, a decline of $1.5 billion 

from the same period of 1993. Although these provisions were $80 million higher than in the first quarter of 

this year, provisions for the first six months of 1994 are 

almost 40 percent below the level of a year ago, reflecting continued improvement in commercial bank asset 

quality. 

The improvement in industry net income was limited by 

gains from securities sales and extraordinary items that 

were well below the levels of a year ago, and by a 

decline in noninterest income, due to reduced trading 

profits at the largest banks. Second-quarter net income 

would have been below the level of the previous quarter 

but for one-time income on Brazilian bonds booked by 

several large banks. These transactions may have 

added as much as $300 million to pre-tax earnings. 

Chart B - Quarterly Net Interest Margins of 

Insured Commercial Banks, 1986 - 1994 

Net nterest Margin (%) 

Banks were able to increase their net interest margins 

as interest rates rose in the second quarter. The average net interest margin was 4.40 percent, an increase 

of 14 basis points over the previous quarter. Average 

asset yields were up by 40 basis points, due to strong 

lending growth. Average funding costs rose by 26 

basis points during the quarter. Bank funding shifted 

toward a greater reliance on nondeposit liabilities and 

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

Office of Corporate Communications, 550 17th Street, NW, Washington, DC 20429; telephone (202) 898-6996. 

For assistance contact: Section508@fdic.gov
foreign-office deposits. Domestic-office time deposits ended 

a string of 13 consecutive quarterly declines, increasing by 

$7.3 billion (0.9 percent). Most of the increase was in smalldenomination (< $100,000) certificates of deposit. 

Banks' total loans grew by $57 .6 billion in the second quarter. 

This is the largest quarterly increase since the fourth quarter 

of 1986, when total loans rose by $71.6 billion. Real estate 

loans, which grew by $20.9 billion, had the largest dollar 

increase. Home mortgage loans accounted for $15.3 billion 

of the increase in real estate loans, with adjustable-rate 

mortgages (ARMs) growing by $6.1 billion. The increase in 

ARM loans may have limited the rise in average asset yields 

in the second quarter, to the extent that these loans often 

carry below-market interest rates for the first year. Real 

estate loans secured by commercial properties increased by 

$4.7 billion. Loans for real estate construction and development was the only category of real estate loans that declined 

during the quarter, falling by $1.4 billion. 

Loans to individuals had the highest rate of growth in the 

second quarter, increasing by $16. 7 billion (four percent). 

Credit-card balances grew by $8.1 billion, while other consumer installment loans increased by $8.6 billion. Commercial and industrial loan growth continued to accelerate, as 

total C&I loans grew by $15.4 billion. C&I loans have increased in four of the last five quarters, after shrinking 

steadily during the previous three years. 

Banks' securities holdings fell by $6.5 billion, the first decline 

in more than three years. An increase in holdings of mortgage-backed securities was more than offset by a $9.7-billion decline in U.S. Treasury securities. Roughly $5.6 billion 

of the decline in banks' securities was due to depreciation of 

"available-for-sale" securities caused by rising interest rates. 

Under new accounting rules established by the recently-implemented FASB Statement 115, the $5.6-billion drop in fair 

value of banks' available-for-sale securities is reflected in a 

decrease in their equity capital account, after adjusting for 

tax effects. In spite of the $3.6-billion charge to capital, the 

industry's total equity increased by $4.3 billion in the quarter. 

Retained earnings contributed $5.3 billion to capital, as 

banks paid $5.9 billion in dividends. (Note: due to a reporting 

error, the first-quarter 1994 dividend total of $6.2 billion shown 

in the previous Quarterly Banking Profile was incorrect. The 

revised amount was $5.2 billion.) The increase in equity kept 

pace with asset growth, and the industry's equity-to-assets ratio 

increased by a single basis point, to 7.84 percent. 

Noncurrent loans fell by $4.5 billion in the second quarter, to 

$35.9 billion. Much of the improvement was in noncurrent 

real estate loans, which declined by $2.3 billion. Noncurrent 

commercial and industrial loans shrank by $1.6 billion. The 

greatest improvements in both loan categories occurred at 

banks in the Northeast and West regions. Banks in these 

regions also had the largest increase in net charge-offs from 

first-quarter levels, although they were roughly one-third 

lower than a year ago. Compared to last year's second 

quarter, net charge-offs were more than 20 percent lower at 

banks in all regions. 

The reduction in noncurrent loans helped lift the industry's 

reserve coverage level to $1.46 for every dollar of noncurrent 

loans, despite a $483-million decline in total reserves. Banks 

in all regions showed improvement in reserve coverage in 

the second quarter. Further evidence of a broadening trend 

of improved asset quality is provided by the increase in the 

number of banks converting reserves into income through 

negative loan-loss provisions. In the second quarter, the 

number of banks reporting negative provisions rose to 408, 

from 348 in the previous quarter and 399 a year earlier. The 

total amount of negative provisions in the second quarter 

was $194 million, up from $172 million in the previous 

quarter, but well below the $318 million in negative provisions taken a year ago. 

The number of commercial banks reporting at midyear fell to 

10,715, a net reduction of 124 from the end of March. There 

were 12 new commercial banks chartered in the second 

quarter, while four failed and one bank liquidated voluntarily. 

Mergers within the industry absorbed 132 institutions, and 

charter changes between savings institutions and commercial banks accounted for a net addition of one institution. The 

number of banks on the FDIC's "Problem List'' declined by 

45 to 338 during the quarter, while the total assets of "problem" commercial banks fell from $53 billion to $42 billion. 

Commercial and Industrial Loan Growth Rates* 

June 30, 1993- June 30, 1994 

Midwest Central 

Hawaii -1 .9 

D Less Than 0% 

D Between 0% and 5% 

• Greater than 5% 

Puerto Rico -8.1 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 2 Second Quarter 1994 
TABLE 1-A. Selected Indicators, FDIC-Insured Commercial Banks 

1994* 1993' 1993 1992 1991 1990 1989 

Return on assets (%) .... .... ... .... .... ..... ..................... .. .. 1.17 1.20 1.20 0.93 0.53 0.48 0.49 

Return on equity(%).. ................. ..... ............. ........... . 14.82 15.46 15.35 12.98 7.94 7.45 7.71 

Core capital (leverage) ratio (%) ...................... ........• 7.70 7.59 7.65 7.20 6.48 6.17 6.11 

Noncurrent assets plus 

other real estate owned to assets (%) ... .... ..... .. .. .. ... 1.27 2.18 1.61 2.54 3.02 2.94 2.30 

Net charge-offs to loans (%) ...................................... 0.53 0.87 0.85 1.27 1.59 1.43 1.16 

Asset growth rate(%) ................................................ 9.05 3.81 5.72 2.19 1.21 2.73 5.38 

Net interest margin (%)......... .. . ... ... ...... ... ... .... ... .... .. .. 4.33 4.45 4.40 4.41 4.11 3.94 4.02 

Net operating income growth(%). ..... ... ......... ...... ...... 20.91 29.51 35.52 92.40 -0.62 2.53 -38 .70 

Number of institutions reporting ... ... .. .... ... ........ ....... .. 10,715 11 ,199 10,958 11,462 11 ,921 12,343 12,709 

Percentage of unprofitable institutions........... ..... ...... 3.67 4.84 4.83 6.85 11 .59 13.44 12.50 

Number of problem institutions.... .............................. 338 580 426 787 1,016 1,012 1,092 

Assets of problem institutions (in billions) ........ .. ....... $42 $326 $242 $408 $528 $342 $188 

Number of failed/assisted institutions........................ 4 23 42 100 108 159 206 

*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) Preliminary 

2nd Quarter 1st Quarter 2nd Quarter %Change 

1994 1994 1993 93 :2-94:2 

Number of institutions reporting .................... .................. ...... .. . 10,715 10,839 11 ,199 -4.3 

Total employees (full-time equivalent) ........................ ............ . 1,495,602 1,488,446 1,476,641 1.3 

CONDITION DATA 

Total assets .......................................................... .................. . $3,892,523 $3,843,212 $3,569,334 9.1 

Loans secured by real estate ........................................ .... 943,912 922,964 889,675 6.1 

Commercial & industrial loans ................•.......................... 564,793 549,362 533,873 5.8 

Loans to individuals ......... ........ .. ....................................... . 438,495 421,803 390,026 12.4 

Farm loans........................................................................ . 39,727 36,002 35,716 11 .2 

Other loans & leases ....................... ... .............................. . 239,551 238,863 225,762 6.1 

Less : Unearned income ................•.........•.......................... 6,130 6,201 7,723 -20.6 

Total loans & leases .... ............. .. ... ... .......... .. ............... ....... . 2,220,348 2,162,792 2,067,329 7.4 

Less: Reserve for losses .................................................... . 52,431 52,914 54,107 -3.1 

Net loans & leases ........................ ....•.. .. ................................ 2,167,917 2,109,878 2,013,223 7.7 

Securities ................................................. .... .. ................ .. ..... . 848,945 855,468 809,930 

Other real estate owned .................. ............ ............... .... ...... . 13,276 14,964 22,586 -41 .2 

Goodwill and other intangibles .............. .... ........•................... 20,256 18,408 16,770 20.8 

All other assets ............... .. .... ......... ... ..................... ............... . 842,129 844,494 706,826 

Total liabilities and capital. ...................................................... . 3,892,523 3,843,212 3,569,334 9.1 

Noninterest-bearing deposits ................................................ . 547,441 549,546 526,200 4.0 

Interest-bearing deposits ............... .... ................................... . 2,218,431 2,207,351 2,154,308 3.0 

Other borrowed funds ........................................................... . 556,425 538,351 446,106 

Subordinated debt .................................. .. ............................ . 37,448 37,227 36,954 1.3 

All other liabilities ........................................ .......................... . 227,762 209,985 124,269 

Equity capital. ........ ........ ... ............... ... ...... ... ................... ..... . . 305,015 300,752 281,496 

Loans and leases 30-89 days past due .. .......... .. .................... . 25,666 29,344 29,384 -12.7 

Noncurrent loans and leases .................................................. . 35,915 40,444 54,173 -33.7 

Restructured loans and leases ............................................... . 6,264 6,224 11,152 -43.8 

Direct and indirect investments in real estate .... .. ................ ... . 570 609 461 23.8 

1·4 Family residential mortgages .................... ....................... . 529,787 514,410 485,161 9.1 

Mortgage-backed securities.. ................................... .............. . 335,162 332,796 334,605 

Earning assets .... .................. .......... .. ....................................... 3,337,333 3,312,291 3,157,163 5.7 

Long-term assets (5+ years) .... ............. .. ................. .............. . 549,958 533,961 513,441 7.1 

Volatile liabilities ......... .................... ... ................ ............. ........ . 1,078,993 1,042,999 N/M 

Foreign office deposits .... ................. ... ................................... . 377,397 355,877 312,362 20.8 

Unused loan commitments ...............•..........•........................... 1,594,118 1,536,726 1,338,406 19.1 

Off-balance-sheet derivatives .......... ................................. ...... . 15,322,453 13,916,774 10,949,140 39.9 

Preliminary Preliminary 

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

INCOME DATA 1994 1993 %Change 1994 1993 93:2-94:2 

Total interest income........................................... .. $124,841 $121 ,785 2.5 $64,299 $60,971 5.5 

Total interest expense........... ................................ 53,177 52,451 1.4 27,763 26,050 6.6 

Net interest income............................................. 71,664 69,334 3.4 36,536 34,921 4.6 

Provision for loan losses............................ ........... 5,523 8,998 -38.6 2,802 4,309 -35.0 

Total noninterest income..................................... .. 37,105 36,179 2.6 18,496 18,630 -0.7 

Total noninterest expense...... .. .... ....................... .. 70,136 69,519 0.9 35,575 34,751 2.4 

Securities gains (losses)....................................... 745 1,722 -56.7 186 745 -75.1 

Applicable income taxes........................................ 11 ,542 9,486 21 .7 5,636 5,005 12.6 

Extraordinary gains, net .................. ........... ......... . (31) 1,879 N/M 6 103 -94.3 

Net income................ .......................................... 22,281 21, 11 O 5.6 11,21 O 10,334 8.5 

Net charge-offs............ .......................................... 5,725 8,857 -35.4 3,122 4,602 -32.2 

Cash dividends..... ................................................. 11,098 8,742 26.9 5,895 4,518 30.5 

Net operating income.............. ................. .......... 21,791 18,023 20.9 11,061 9,702 14.0 

"New accounting rules and/or reporting detail became effective March 31, 1994. See Notes to Users, pp. 18-19. N/M - Not meaningful 

FDIC Quarterly Banking Profile 

Second Quarter 1994 3 FDIC-Insured Commercial Banks 
TABLE Ill-A. First Half 1994, FDIC-Insured Commercial Banks 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

FIRST HALF Preliminary All than $100 to to than $10 North- South- Mid- South-

(The way It Is . .• ) Institutions Million $1 Billion $10 Billion Billion east east Central I west west West 

Number of institutions reporting ................ 10,715 7,558 2,774 328 55 852 1,788 2,351 2,667 1,899 1,158 

Total assets (in billions) ............................. $3,892.5 $326.2 $676.7 $1 ,079.4 $1 ,810.3 ~1,526.4 $613.6 $639.3 $251 .1 $293.5 $568.7 

Total deposits (in billions) .......................... 2,765.9 284.8 568.6 778.1 1,134.4 953.0 463.3 471 .2 193.6 241.9 442.8 

Net income (in millions) ............................. 22,281 1,902 4,033 7,472 8,874 7,956 3,703 3,724 1,844 1,748 3,307 

% of unprofitable institutions ... .. ....... ......... 3.7 4.1 2.6 3.0 0.0 6.1 3.1 3.4 1.8 2.6 9.5 

% of institutions with earnings gains......... 49.6 48.1 51 .2 68.0 63.6 57.9 56.5 45.1 47.2 41.7 60.3 

Performance Ratios (annualized, %) 

Yield on earning assets ....... ....... .. ........... .. 7.54 7.40 7.39 7.40 7.72 8.13 7.14 7.13 7.41 6.72 7.45 

Cost of funding earning assets .................. 3.21 2.78 2.69 2.70 3.86 4.15 2.77 2.88 2.79 2.45 2.34 

Net interest margin .................................... 4.33 4.63 4.70 4.70 3.86 3.98 4.37 4.25 4.62 4.27 5.11 

Noninterest income to earning assets ....... 2.24 1.18 1.41 2.61 2.56 2.84 1.64 1.62 2.39 1.69 2.36 

Noninterest expense to earning assets ..... 4.23 3.84 3.94 4.50 4.27 4.44 3.85 3.72 4.29 4.00 4.84 

Net operating income to assets............. .... 1.14 1.16 1.19 1.38 0.97 1.04 1.20 1.17 1.46 1.18 1.17 

Return on assets ....................................... 1.17 1.17 1.20 1.40 1.01 1.08 1.22 1.19 1.47 1.19 1.18 

Return on equity ........................................ 14.82 11.89 13.59 17.10 14.54 14.91 15.27 14.76 16.84 14.25 13.60 

Net charge-offs to loans and leases .......... 0.53 0.17 0.32 0.64 0.59 0.83 0.23 0.29 0.40 0.10 0.62 

Loan loss provision to net charge-offs .. .. .. 96.48 157.06 121 .00 105.53 81 .02 91 .19 110.40 128.35 117.79 107.63 84.68 

Condition Ratios (%) 

Loss allowance to: 

Loans and leases.................................... 2.36 1.70 1.79 2.35 2.72 2.86 1.83 1.84 1.93 1.79 2.77 

Noncurrent loans and leases .................. 145.99 140.95 132.15 159.47 143.37 128.72 181.43 179.55 180.58 172.32 138.19 

Noncurrent assets plus 

other real estate owned to assets ........... 1.27 0.97 1.1 4 1.16 1.43 1.62 0.88 0.78 0.86 0.79 1.70 

Equity capital ratio ..................... ................ 7.84 9.91 8.89 8.24 6.83 7.11 8.04 7.99 8.81 8.44 8.63 

Core capital (leverage) ratio ...................... 7.70 9.97 8.86 8.03 6.64 7.16 7.92 7.99 8.73 8.11 7.92 

Net loans and leases to deposits .............. 78.38 61 .37 68.55 84.50 83.38 81 .01 80.03 79.85 76.21 59.49 80.70 

Growth Rates (year-to-year, %) 

Assets . . . ... ..... .. .. .. ......................................... 9.1 13.2 8.0 8.9 5.0 2.5 5.3 . . . . . . . . . . . Equity capital ........... .................................. 

Net . . . interest income................................... 3.4 3.8 5.2 2.2 7.7 2.0 0.8 

Net income .... ......................................... ... 5.6 . . 8.5 . 10.8 8.5 -0.7 -21 .4 16.6 

Noncurrent assets plus 

. . other real estate owned.. ......................... -36.6 -37.9 -34.2 -29.9 -25.2 -34.0 -40.0 

Net charge-offs .............................. ............ -35.4 . . -35.3 -40.2 -36.5 -21.6 -53.7 -34.4 

Loan . . . loss provision ...................... ............. -38.6 -36.5 -48.2 -39.3 -26.4 0.8 -44.3 

PRIOR FIRST HALVES 

(The way it was ... ) 

Number of institutions.. ................ ..... 1993 11,199 8,089 2,737 319 54 895 1,870 2,454 2,744 1,988 1,248 

............................. ............ 1991 12,154 9,075 2,712 321 46 1,038 1,935 2,681 2,921 2,128 1,451 

12,945 10,083 2,486 336 40 1,093 1,960 2,884 3,064 2,446 1,498 ······················ ·············· ·····1989 

Total assets (in billions) ..................... 1993 $3,569.3 $340.7 $667.1 $1 ,010.7 $1 ,550.8 $1,348.4 $568.4 $587.0 $239.1 $286.3 $540.1 

......................................... 1991 3,377.3 357.5 664.1 1,058.2 1,297.6 1,276.7 509.4 553.1 226.6 265.7 545.9 

......................................... 1989 3,206.9 371 .8 588.7 1,042.9 1,203.4 1,275.6 457.7 520.3 207.4 258.1 487.7 

Return on assets (%) ... ...... .. ............ .1993 1.20 1.25 1.22 1.28 1.12 1.08 1.22 1.29 1.43 1.59 1.05 

............................. .. .. ........ 1991 0.60 0.97 0.79 0.53 0.47 0.31 0.63 0.92 1.13 0.64 0.72 

0.91 0.89 0.95 0.86 0.92 0.87 0.98 1.08 1.15 0.05 1.10 ········ ··········· ·········· ············1989 

Net charge-offs to loans & leases (%) 

....................... .................. 1993 0.87 0.30 0.50 0.93 1.10 1.35 0.42 0.50 0.56 0.25 0.96 

.................................. .. ..... 1991 1.45 0.56 0.82 1.63 1.81 2.18 1.02 0.76 1.00 1.30 1.12 

.. ..................... ..................1989 0.89 0.65 0.64 0.87 1.10 0.91 0.47 0.67 0.92 1.79 1.05 

Noncurrent assets plus 

OREO to assets (%) .......... .. .. ........1993 2.18 1.28 1.58 1.91 2.81 2.95 1.45 1.21 1.21 1.23 2.98 

.. .. .. .................. ................. 1991 3.24 1.78 2.10 3.17 4.29 4.74 2.41 1.78 1.56 2.59 3.00 

.. ............................... ........ 1989 2.28 1.93 1.82 1.64 3.16 2.52 1.23 1.29 1.59 4.77 2.64 

Equity capital ratio (%) ............ .. ........ 1993 7.89 9.80 8.63 8.20 6.94 7.14 7.94 8.14 8.94 8.24 8.76 

.. .. .. ....... .. .......................... 1991 6.71 9.10 7.85 6.74 5.45 5.94 7.19 7.35 8.08 6.77 6.83 

...................... .. ................. 1989 6.44 9.07 7.54 6.36 5.17 6.06 7.02 6.89 7.84 5.84 6.16 

•New accounting rules and/or reporting detail became effective March 31, 1994. See Notes to Users, pp. 18-19. 

REGIONS: Northeast- Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Puerto Rico Rhode Island, Vermont, U.S. Virgin Islands ' 

Southeast- Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia Central - Illinois, Indiana, Kentucky, Michigan, Ohio, Wisconsin 

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

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

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

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 4 Second Quarter 1994 
TABLE IV-A. Second Quarter 1994, FDIC-Insured Commercial Banks 

SECOND QUARTER Preliminary 

(The way /tis ... ) 

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

Total assets (in billions) ............................. 

Total deposits (in billions) .......................... 

Net income (in millions) .......... .. ................ . 

% of unprofitable institutions ..................... 

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

Performance Ratios (annualized,%) 

Yield on earning assets ............................. 

Cost of funding earning assets .................. 

Net interest margin .................................... 

Noninterest income to earning assets ....... 

Noninterest expense to earning assets.. .. 

Net operating income to assets ................. 

Return on assets .............................. ...... .. . 

Return on equity.. ...................................... 

Net charge-offs to loans and leases .......... 

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

Growth Rates (year-to-year,%) 

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

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

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

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

PRIOR SECOND QUARTERS 

(The way ft was ... ) 

Return on assets (%) ... .. ............. ...... 1993 

................. ................ ....... 1991 

···························· ··· ···· ···· ·1989 

Net charge-offs to loans & leases (%) 

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

........................................ 1991 

........................................ 1989 

All 

Institutions 

10,715 

$3,892.5 

2,765.9 

11,210 

4.1 

54.0 

7.74 

3.34 

4.40 

2.23 

4.28 

1.14 

1.16 

14.81 

0.57 

89.75 

4.63 

8.48 

-32.15 

-34 .97 

1.17 

0.55 

0.88 

0.90 

1.71 

1.05 

Less 

than $100 

Million 

7,558 

$326.2 

284.8 

971 

4.4 

52.8 

7.54 

2.81 

4.73 

1.19 

3.88 

1.20 

1.19 

12.06 

0.21 

134.29 

-

-

1.21 

0.76 

0.84 

0.34 

0.68 

0.76 

Asset Size Distribution Geographic Distribution by Region 

$100 Million $1 Billion Greater East I West 

to 

$1 Billion 

to 

$10 Billion 

than $10 

Billion 

North· 

east 

South• 

east Central I Midwest 

South· 

west West 

2,774 328 55 852 1,788 2,351 2,667 1,899 1,158 

$676.7 $1,079.4 $1 ,810.3 $1 ,526.4 $613.6 $639.3 $251 .1 $293.5 $568.7 

568.6 778.1 1,134.4 953.0 463.3 471 .2 193.6 241 .9 442.8 

2,029 3,686 4,525 3,899 1,901 1,918 952 850 1,691 

3.2 3.4 3.6 6.9 3.8 3.4 2.3 3.2 9.5 

55.6 64.9 67.3 62.9 61 .0 49.2 49.8 50.2 61 .8 

7.54 7.54 7.99 8.41 7.29 7.28 7.60 6.85 7.62 

2.75 2.82 4.04 4.35 2.85 3.00 2.89 2.52 2.42 

4.79 4.72 3.95 4.06 4.45 4.28 4.71 4.33 5.19 

1.43 2.64 2.51 2.79 1.58 1.66 2.46 1.64 2.40 

3.98 4.54 4.32 4.55 3.83 3.75 4.29 4.00 4.87 

1.21 1.38 0.97 0.99 1.24 1.19 1.55 1.15 1.20 

1.21 1.38 1.01 1.03 1.25 1.21 1.52 1.15 1.19 

13.58 16.72 14.75 14.48 15.54 15.09 17.36 13.77 13.87 

0.38 0.68 0.63 0.93 0.22 0.31 0.40 0.13 0.66 

112.28 104.62 70.56 83.33 107.19 115.27 114.93 109.90 83.30 

. . 5.55 6.95 3.35 7.90 2.26 1.73 

. - - 13.61 4.62 0.99 7.54 ·5.39 20.55 

- -28.90 -45.26 -31 .07 -21 .75 -53.06 -36.30 

- - -33.71 -45.12 -34.74 -19.69 715.32 ·42.90 

1.19 1.33 1.04 1.03 1.29 1.31 1.50 1.26 1.04 

0.76 0.42 0.50 0.23 0.66 0.92 1.15 0.65 0.54 

0.95 0.79 0.94 0.87 0.98 1.07 1.06 -0.05 1.04 

0.56 0.96 1.12 1.38 0.45 0.49 0.56 0.30 1.07 

0.93 1.72 2.32 2.79 1.10 0.83 1.09 1.37 1.09 

0.70 0.93 1.41 1.20 0.51 0.75 0.90 1.93 1.15 

FDIC Quarterly Banking Profile 

Second Quarter 1994 5 FDIC-Insured Commercial Banks 
TABLE V-A. Real Estate Loan Performance and Other Real Estate Owned, FDIC-Insured Commercial Banks 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

June 30, 1994 All 

Institutions 

than $100 

Million 

to 

$1 Billion 

to 

$10 Billion 

than $10 

Billion 

Northeast Southeast Central I Midwest 

Southwest West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ................... .. ..... .. .. 1.28 1.25 1.11 1.27 1.43 1.68 1.06 1.11 0.79 1.12 1.32 

Construction and development.. ............................ 1.64 0.88 1.48 2.03 1.58 2.17 1.38 1.82 0.86 1.35 1.52 

Commercial real estate ........................ ............. .... 1.40 1.06 1.02 1.37 1.94 2.15 0.80 1.02 0.79 0.98 1.77 

Multifamily residential real estate ..... .. .............. ..... 1.09 1.02 0.83 1.34 1.07 1.69 0.62 1.14 0.86 0.51 1.01 

1-4 Family residential* .... ....................................... 1.27 1.50 1.21 1.20 1.29 1.48 1.26 1.19 0.83 1.21 1.22 

Home equity loans ... .... .......... .... .. ......... ... .... .... ... ... 0.70 1.16 0.75 0.65 0.69 0.93 0.51 0.54 0.47 1.70 0.61 

Commercial RE loans not secured by real estate ... 1.18 1.27 0.62 1.05 1.28 1.68 0.70 0.99 0.54 0.43 1.10 

Percent of Loans Noncurrent•• 

All real estate loans .... ........... .............. ............ ........ 2.24 1.16 1.48 2.02 3.31 3.51 1.27 1.21 1.21 1.33 3.06 

Construction and development.. ..... ....... .. ......... .. ... 6.05 1.42 2.56 5.17 11.18 9.91 2.14 3.38 1.23 1.13 11 .07 

Commercial real estate .............................. ........... 3.48 1.50 2.11 3.11 5.94 5.80 2.09 1.72 2.35 2.15 4.38 

Multifamily residential real estate ........................ .. 3.27 1.67 2.28 2.82 5.00 5.37 1.59 1.10 2.57 1.22 5.31 

1-4 Family residential* .. ............ ........... .................. 1.08 0.87 0.92 1.03 1.29 1.60 0.75 0.76 0.53 0.81 1.29 

Home equity loans .. ... ....... ................ ..................... 0.53 0.70 0.58 0.50 0.51 0.74 0.31 0.32 0.18 1.12 0.53 

Commercial RE loans not secured by real estate ... 3.20 1.58 1.24 1.44 4.14 6.49 2.33 1.13 2.61 0.41 1.33 

Percent of Loans Charged-off 

(net, annualized) 

All real estate loans ..................... ................ ........ .... 0.33 0.06 0.16 0.27 0.59 0.77 0.05 0.14 0.00 -0 .03 0.40 

Construction and development .............................. 0.74 0.15 0.52 0.57 1.22 1.80 -0.05 0.89 0.08 -0 .10 0.70 

Commercial real estate.. ......................... .............. 0.56 0.07 0.19 0.45 1.22 1.47 0.12 0.19 -0.07 -0.08 0.58 

Multifamily residential real estate... .. ... .. ................ 0.49 0.24 0.36 0.43 0.72 1.24 0.06 0.19 -0.11 -0.12 0.64 

1-4 Family residential* .. .............................. ........... 0.13 0.05 0.08 0.11 0.22 0.31 0.03 0.03 0.04 0.03 0.17 

Home equity loans ...................................... .... ..... .. 0.25 0.17 0.12 0.15 0.39 0.26 0.07 0.04 0.01 0.08 0.53 

Commercial RE loans not secured by real estate ... 0.60 0.57 0.15 0.13 0.84 1.08 0.06 0.43 -0.15 -0.21 0.58 

Total Loans Outstanding (In billions) 

All real estate loans ....................................... .. ... ..... $943.9 $98.8 $226.6 $292.5 $325.9 $271.8 $200.2 $164.5 $62.3 $66.4 $178.7 

Construction and development... .................. .. .. .. .. . 62.6 6.2 15.3 21 .4 19.7 14.8 14.9 10.0 3.6 5.3 14.1 

Commercial real estate ......................................... 275.0 27.2 76 .9 92.4 78.5 73.8 60.1 51 .0 16.6 20.6 52.8 

Multifamily residential real estate ........................ .. 30.5 2.4 8.4 10.2 9.6 8.0 6.3 5.9 2.3 2.1 6.0 

1-4 Family residential* .............................. .......... ... 456.3 49.6 106.0 139.0 161 .8 126.9 102.5 79.0 30.5 35.1 82.4 

Home equity loans ................................... ........... ... 73.4 2.5 12.8 26.8 31 .3 26.2 12.7 13.0 2.4 0.8 18.3 

Commercial RE loans not secured by real estate ... 16.7 0.3 1.2 4.2 11 .0 5.7 2.3 1.9 0.5 0.8 5.5 

Other Real Estate Owned (In millions) 

All other real estate owned........ .............. ...... .......... $13,276 $987 $2,346 $2,628 $7,316 $7,042 $1 ,606 $1,032 $552 $793 $2,250 

Construction and development.. .. .......................... 2,676 146 563 883 1,083 1,089 459 246 104 135 642 

Commercial real estate ....................... .. ................ 6,837 468 1,107 1,265 3,997 3,715 809 546 339 467 962 

Multifamily residential real estate ....................... ... 660 43 131 101 384 408 36 59 20 26 112 

1-4 Family residential ............................................ 1,992 261 486 349 897 896 276 164 60 115 482 

Farmland .......... ........... ....... .. ... .... ..... .. .... .. ............. 191 68 58 24 41 16 27 18 29 50 52 

Other real estate owned in foreign offices .... .... ..... 919 0 0 7 913 919 0 0 0 0 0 

*Excludes home equity loans. 

**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. 

Concentration and Composition of Off-Balance-Sheet Derivatives 

June 30, 1994 (Notional Amounts) 

All Other Participants (653 Banks) 

$0.8 Trillion (5.0%) 

• Notional amounts do not represent either the net market position or the credit exposure of banks' 

off-balance-sheet derivatives activities; they represent the gross value of all contracts written. 

•• Includes foreign exchange rate swaps, foreign currency options, and all other forwards, swaps and options. 

FDIC Quarterly Banking Profile 

FDIC-Insured Commercial Banks 6 Second Quarter 1994 
SAVINGS INSTITUTION PERFORMANCE - SECOND QUARTER, 1994 

• Savings Institutions Earned $1.9 Billion 

• Equity Capital Increased To Over BPercent Of Assets 

• Troubled Real Estate Asset Rates Fall Below 3 Percent 

• Two Savings Institutions Fail During The Quarter 

Private-sector insured savings institutions earned $1 .9 billion in the second quarter of 1994, for an annualized return 

on assets (ROA) of 0.75 percent. Net income was $562 

million higher than in the first quarter and $111 million 

higher than in the second quarter of 1993. Ninety-three 

percent of all savings institutions were profitable in the 

quarter. The provision for loan losses, which totaled $709 

million, was $648 million lower than a year ago, when a 

$433-million provision was taken by one large institution. 

Relative to the previous quarter, noninterest income increased by $209 million, and overhead expenses declined 

by $97 million. Almost all of the second-quarter profits 

consisted of net operating (core) income, since nonrecurring items (security and extraordinary gains or losses) 

totaled only $2 million. The $1.9 billion in core net operating 

income was a $429-million increase over the previous 

quarter. Core earnings this quarter were the second highest 

since quarterly reports were first filed in 1984, after the $2 

billion reported in the first quarter of 1993. Earnings for the 

first half of this year, at $3.1 billion, ran almost $1 billion 

behind the first half of 1993, when earnings were bolstered 

by accounting adjustments. 

Quarterly Net Income, 1990 - 1994 

$ Blllons 3 ,----------------------, 

□ Net Operatilg Income 2.4 

■ Secuitles and Other Gains, Net 

2 u 1.5 1.6 1.5. 

- 1 

-2 

- 3 '-r---..-.....-'-r'---..--,,-.,,---.--,-,,----.,-~,---,,--,:r.-,~ 

1990 1991 1992 1993 1994 

Savings institutions maintained net interest margins despite a rise in interest rates. The average margin in the 

second quarter was 3.40 percent, little changed from 3.41 

percent in the first quarter, but down from 3.56 percent a 

year ago. Over the past year, average asset yields have 

declined faster than funding costs, but both rose slightly in 

the second quarter. Margins widened at all institutions with 

less than $5 billion in assets, as their asset yields increased 

slightly faster than their funding costs. Institutions with over 

$5 billion in assets showed a drop in their net interest 

margin from 3.18 to 3.11 percent. 

Earnings did not increase in all regions of the country. Net 

income in the Midwest Region fell by $67 million, to $47 

million. Expenses associated with one merger accounted 

for most of the decline in earnings for that region. Thrifts in 

the West Region improved earnings by $437 million, to 

FDIC Quarterly Banking Profile 

$367 million, from a net loss last quarter. This region 

reported an annualized ROA of 0.46 percent in the second 

quarter even though one out of every five (21 percent) of 

the thrifts in the West Region lost money. All other regions 

reported average annualized ROAs of 0.88 percent or 

higher. 

Savings institutions in the West Region continue to sacrifice earnings in order to improve their financial condition. 

For the first half of 1994, they had the highest net charge-off 

rate on real estate loans (0.86 percent), with the Northeast 

Region a distant second at 0.39 percent. California thrifts 

account for most of the real estate problems in the West 

Region. They reported a $45-million loss for the first half of 

1994, for an annualized ROA of -0.03 percent. California 

institutions hold 27 percent of all savings institution industry 

assets, but they accounted for 59 percent of the loan-loss 

provisions and 68 percent of net charge-offs on real estate 

taken by the industry in the first half of 1994. 

Troubled Real Estate Asset Rates,* 

by Region, 1990 -1994 

Percent 

8 

6 

:---/

West 

•

•

•

····- ...... 

-.;;,.. .... -' ' ,1·•··· --.. 

I •••• 

Rest of U.S. •••••• 

0 

23412341234123412 

1990 1991 1992 1993 1994 

• Loans secured by real estate past due 90 days or more or in nonaccrual 

status plus other real estate owned (OREO) as a percent of total real estate 

loans plus OREO. 

Real estate market improvements helped to strengthen the 

industry's balance sheet. Troubled real estate assets -

noncurrent real estate loans and other real estate owned 

(OREO) - fell by almost $2 billion during the second 

quarter. Troubled real estate assets comprised 2.83 percent of total real estate assets, down from 3.17 percent last 

quarter. This marks the first time that troubled real estate 

asset rates have fallen below three percent since savings 

institutions began uniform reporting of noncurrent assets in 

1990. Noncurrent real estate loans decreased by $892 

million during the second quarter and other real estate 

owned fell by over $1 billion. A few large institutions took 

restructuring charges in the previous quarter in order to 

remove noncurrent loans and OREO from their books. 

Total assets increased this quarter by $2.4 billion, to $999 

billion. Loans secured by 1-4 family residential properties 

increased by $5.6 billion (one percent) from last quarter. At 

the same time, securities increased by $4.8 billion (two 

percent). Asset growth was partially offset by a $1-billion 

Second Quarter, 1994 7 FDIC-Insured Savings Institutions 
drop in OREO and a $?-billion drop in other assets, mostly 

cash equivalents and short-term liquid assets. Savings 

institutions continue to shift their funding from deposits to 

borrowed funds. During the second quarter, deposits declined by $9.4 billion while other borrowings increased by 

$12.7 billion. 

The ratio of loan-loss reserves to noncurrent loans, or 

"coverage ratio," reached 72 cents for each dollar of noncurrent loans at the end of the second quarter. This ratio 

continues to improve, up from 70 cents at the end of the 

first quarter and 60 cents a year ago. Noncurrent loans 

dropped by $940 million while loan-loss reserves decreased by $315 million (four percent) during the quarter 

as net charge-offs exceeded provisions by 25 percent. 

The industry's equity capital ratio increased for the fifteenth 

consecutive quarter, to 8.01 percent of assets. Equity 

capital climbed by $638 million during the quarter and is 

now $4.2 billion higher than a year ago. After paying 

dividends, thrifts retained $1.3 billion of their earnings this 

quarter. Savings institutions also raised about $850 million 

in capital through stock sales. The increase in thrifts' equity 

capital this quarter was partially offset by almost $700 

million in unrealized losses on securities classified as available-for-sale under new accounting rules adopted this year 

(FASB 115). There was a net shift of $764 million in thrift 

equity capital to the commercial banking industry through 

mergers and charter changes during the quarter. 

The number of insured private-sector thrifts in the industry 

shrank by 23 in the second quarter, to 2,217. Savings 

institutions had a net transfer of $9.6 billion in assets to 

commercial banks, as commercial banks continue to acquire thrifts. During the quarter, 19 savings institutions, with 

$9.7 billion in assets, merged with or converted to commercial banks; three commercial banks, with $131 million in 

assets, were merged into savings institutions. Savings 

institutions also acquired 13 Resolution Trust Corporation 

(RTC) conservatorships, with $2.7 billion in assets, during 

the quarter. Consolidation within the thrift industry accounted for a reduction of 12 institutions. During the quarter, 23 mutual savings institutions, with $4.5 billion in 

assets, converted to stock ownership. 

Two savings institutions failed in the second quarter- one 

insured by the Bank Insurance Fund (BIF) and one by the 

Savings Association Insurance Fund (SAIF}. These are the 

first failures since the third quarter of 1993. The number of 

"problem" savings institutions continues to shrink. At the 

end of the quarter, there were 95 "problem" institutions, with 

$71 billion in assets, compared to 118 institutions, with 

assets of $89 billion, at the end of the first quarter. 

Troubled Real Estate Asset Rates* 

June 30, 1994 

Northeast 

Midwest 

South Dakota 

1.24 

Nebraska 

1.18 

Kansas 

1.33 

Southwest 

, o 

~ 

~lb 

Hawaii () 

0.95 

■ Greater than 6o/o 

@ Between3% and 6% 

D Less than 3% 

Puerto Rico 

4.25 

CJ 

Southeast 

• Noncurrent real estate loans plus other real estate owned (OREO) 

as apercent of total real estate loans plus OREO. 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 8 Second Quarter, 1994 
TABLE 1-8. Selected Indicators, FDIC-Insured Savings Institutions* 

1994** 1993** 1993 1992 1991 1990 

Return on assets (%) ........................ ............ ........... 0.63 0 .83 0.70 0.66 0.07 -0.38 

Return on equity (%) ...................... ...... ................... 7.95 11.18 9.22 9.53 1.20 -6.82 

Core capital (leverage) ratio(%) ............................. 7.60 7.18 7.48 6.77 5.54 4.62 

Noncurrent assets plus 

other real estate owned to assets (%) ................... 1.76 2.63 2.09 3.07 3.96 3.98 

Net charge-offs to loans (%) ............... .... ................. 0.53 0.66 0.65 0.59 0.65 0.60 

Asset groW1h rate (%) .. .. ...... .. .. .. .. .. ...................... .. .. -0.48 -6.84 -2.85 -7.44 -11 .61 -11.79 

Net interest margin (%) ...... .... ............. .. .... .. ...... ...... 3.39 3.54 3.48 3.40 2.76 2.20 

Net operating income groW1h (%) .............. ...... ...... .. -9.09 37.37 10.51 N/M N/M N/M 

Number of institutions .. .......... ... .. ...... .. ..................... 2,217 2,314 2,262 2,390 2,561 2,815 

Percentage of unprofitable institutions ................ .... 6.31 5.06 5.84 7.66 18.51 30.12 

Number of problem institutions ............................ .. .. 95 209 146 276 410 480 

Assets of problem institutions (in billions).. .. ........... $71 $128 $92 $183 $291 $298 

Number of failed/assisted institutions ...... .. ...... ........ 2 6 8 81 163 223 

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

TABLE 11-8. Aggregate Condition and Income Data, FDIC-Insured Savings Institutions* 

(dollar figures in millions) Preliminary 

2nd Quarter 1st Quarter 2nd Quarter 3⁄4Change 

1994 1994 1993 93:2-94:2 

Number of institutions reporting ..................................... .. ........ 2,217 2,240 2,314 -4.2 

Total employees (full-time equivalent) ................ .................... . 279,374 285,114 284,377 -1.8 

CONDITION DATA 

Total assets ............. ................................................ .... ........ .... $999,150 $996,717 $1,003,919 -0.5 

Loans secured by real estate ........................................... . 588,474 583,367 604,961 -2.7 

1-4 Family residential .................................................... .. 450,494 444,898 464,356 -2.7 

Multifamily residential property ........... ... ................... ... ... . 63,748 64,055 64,118 -0.6 

Commercial real estate ............ ... ...... .............................. . 54,322 55,647 58,159 -6.6 

Construction, development and land.. ................... .......... 19,910 18,766 18,327 8.6 

Commercial & industrial loans .......................................... . 9,444 9,488 9,932 -4.9 

Loans to individuals.. .. ..................................................... .. 38,122 36,893 36,843 3.5 

Other loans & leases ........................................................ . 1,729 1,576 1,505 14.9 

Less : Unearned income & contra accounts ............ .......... . 10,901 9,704 9,124 19.5 

Total loans & leases .............. .. .. ........................................ .. 626,868 621,620 644,117 -2.7 

Less : Reserve for losses ...... .. .. .......................................... . 8,524 8,839 8,706 -2.1 

Net loans & leases .................... .. , ........................ ................. . 618,343 612,781 635,411 -2.7 

Securities ................................... .................... , ..... ........ ....... .. . 291,471 286,656 264,264 

Other real estate owned ............................................... .. ...... . 5,785 6,798 11 ,782 -50.9 

Goodwill and other intangibles .......... .... ........ .. .... .. ...... ........ .. 5,801 5,565 6,613 -12.3 

All other assets ............. ........... ......................................... ..... 77,750 84,918 85,849 

Total liabilities and capital ........................ ................... ............ . 999,150 996,717 1,003,919 -0.5 

Deposits .............................................................................. .. . 756,946 766,337 788,012 -3.9 

Other borrowed funds ................ .............................. ... ........ .. . 148,408 135,698 126,233 

Subordinated debt .... ........ ... .. ....................................... .. .. .... . 2,515 2,537 2,679 -6.1 

All other liabilities ....... .... .... .. .. .... ............................................ 11,248 12,750 11 ,131 

Equity capital .................................................. ........... ........... . 80,033 79,395 75,863 

Loans and leases 30-89 days past due .... .................... .... ... .. .. 8,737 10,449 10,312 -15.3 

Noncurrent loans and leases ...... ............................................ . 11 ,778 12,718 14,604 -19.4 

Restructured loans and leases .......... .... .................... .. .......... .. 8,761 9,426 13,086 -33.1 

Direct and indirect investments in real estate.. ...................... .. 605 711 1,048 -42.3 

Mortgage-backed securities ....... ........ ..... ................. .. ... ......... . 210,402 205,781 187,821 

Earning assets ..................................... ..... ........... ................... . 932,179 927,490 929,123 0.3 

FHLB Advances (TFR filers only) ................ .......................... .. 79,247 75,190 71,448 10.9 

Unused loan commitments .................... ................................ .. 72,838 96,169 87,367 -16.6 

Preliminary Preliminary 

First Half First Half 2nd Quarter 2nd Quarter 3⁄4Change 

INCOME DATA 1994 1993 3⁄4Change 1994 1993 93:2-94:2 

Total interest income ............................................ . $31 ,755 $34,385 -7.7 $16,084 $17,209 -6.5 

Total interest expense .................. ...................... .. . 16,146 18,169 -11 .1 8,224 9,012 -8.7 

Net interest income ..................... ... ... ........... .. ... .. 15,609 16,217 -3.8 7,860 8,198 -4.1 

Provision for loan losses.. .. ................. .. .. .... ........ .. 1,447 2,292 -36.9 709 1,357 -47.7 

Total noninterest income ............. ........................ .. 3,030 3,893 -22.2 1,634 1,964 -16.8 

Total noninterest expense ..................................... 12,032 12,337 -2.5 6,022 6,278 -4.1 

Securities gains (losses) ................ .. .. .... ... .. .......... 40 258 -84.3 2 123 -98.7 

Applicable income taxes ...................... .................. 1,915 1,969 -2.7 905 946 -4.3 

Extraordinary gains, net .... .. ......... ...................... .. (160) 347 N/M 0 43 -100.0 

Net income............. .................................... ...... .. . 3,125 4,116 -24.1 1,858 1,747 6.4 

Net charge-offs ..................................................... . 1,660 2,102 -21 .1 886 1,224 -27.6 

Cash dividends ............. ........ ... ............................ .. 1,068 1,067 0.1 520 426 22.1 

Net operating income ......................................... . 3,257 3,583 -9.1 1,858 1,621 14.7 

'Excludes institutions in Resolution Trust Corporation conservatorship and one self-liquidating institution. 

"*New accounting rules and/or reporting detail became effective March 31 , 1994. See Notes to Users, pp.18-19. 

N/M - Not meaningful 

FDIC Quarterly Banking Profile 

Second Quarter, 1994 9 FDIC-Insured Savings Institutions 
TABLE 111-B. First Half 1994, FDIC-Insured Savings Institutions• 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

FIRST HALF Preliminary All than $100 to to than $5 North- South- Mid- South-

(The way It Is •. • ) Institutions Million $1 Billion $5 Billion Billion east east Central I west west West 

Number of institutions reporting ................ 2,217 1,032 1,016 140 29 813 354 558 162 144 186 

Total assets (in billions) ...... ................ ....... $999.1 $52.4 $295.1 $299.0 $352.6 $337.4 $83.2 $151 .6 $52.3 $55.9 $318.8 

Total deposits (in billions) ............. .. ........... 756.9 45.3 242.7 220.9 248.1 271 .7 64.6 115.8 38.3 36.3 230.3 

Net income (in millions) ............................. 3,124.7 219.5 1,197.1 1,096.5 611 .5 1,464.2 361 .2 539.9 157.6 304.7 297.0 

% of unprofitable institutions ..... .. .............. 6.3 6.5 5.2 10.0 20.7 5.5 6.2 3.6 3.1 4.2 22.6 

% of institutions with earnings gains ......... 32.3 31 .0 31 .7 42.1 48.3 34.6 34.5 29.7 22.2 38.2 29.6 

Performance Ratios (annualized, %) 

Yield on earning assets ..... ......... ............... 6.90 7.15 7.06 6.91 6.72 7.00 7.01 6.96 6.85 6.66 6.79 

Cost of funding earning assets .................. 3.51 3.47 3.45 3.49 3.59 3.27 3.63 3.61 3.84 3.76 3.59 

Net interest margin ....................... ............. 3.39 3.68 3.61 3.43 3.13 3.73 3.38 3.35 3.01 2.91 3.20 

Noninterest income to earning assets ....... 0.66 0.61 0.69 0.76 0.55 0.61 0.77 0.66 0.71 1.10 0.59 

Noninterest expense to earning assets ..... 2.62 2.86 2.79 2.60 2.45 2.69 2.59 2.44 2.46 2.47 2.68 

Net operating income to assets ................. 0.66 0.83 0.81 0.75 0.43 0.87 0.91 0.89 0.67 1.09 0.18 

Return on assets .... ...... ..... .. .......... ............ 0.63 0.84 0.82 0.74 0.35 0.88 0.88 0.72 0.62 1.09 0.19 

Return on equity.. .. ....................... ............. 7.95 8.82 9.31 9.45 4.96 10.78 10.43 8.37 7.76 15.08 2.53 

Net charge-offs to loans and leases .......... 0.53 0.11 0.20 0.52 0.87 0.45 0.21 0.11 0.14 0.27 0.94 

Loan loss provision to net charge--offs ...... 87.21 125.85 119.45 102.63 73.66 86.76 66.23 128.75 142.66 85.10 85.49 

Condition Ratios (%) 

Loss allowance to: 

Loans and leases ...............................•.... 1.36 0.89 1.21 1.57 1.39 1.64 1.12 0.85 0.82 0.87 1.51 

Noncurrent loans and leases ....... ......... .. 72.37 65.16 80.34 83.79 61 .71 64.30 102.58 124.38 131.75 71 .51 68.06 

Noncurrent assets plus 

other real estate owned to assets ........... 1.76 1.22 1.54 1.84 1.95 2.25 1.15 0.60 0.62 1.61 2.17 

Noncurrent RE loans to RE loans ............. 1.88 1.29 1.47 1.92 2.25 2.56 1.03 0.65 0.62 1.22 2.25 

Equity capital ratio ......................... ............ 8.01 9.68 8.91 7.93 7.07 8.27 8.55 8.66 7.98 7.41 7.39 

Core capital (leverage) ratio ...................... 7.60 9.57 8.73 7.53 6.41 8.10 8.24 8.30 7.43 6.88 6.72 

Gross real estate assets to gross assets.. 79.06 72.36 74.73 77.97 84.63 74.19 78.01 80.43 77.97 77.08 84.36 

Gross 1-4 family mortgages to gr. assets. 44.23 50.46 43.86 37.30 49.48 39.47 46.22 47.79 43 .80 29.62 49.74 

Net loans and leases to deposits .............. 81 .69 75.43 74.92 77.96 92.77 70.89 80.49 80.95 79.77 69.61 97.37 

Growth Rates (year-to-year, %) 

Assets ..... .................................................. -0.5 - 2.0 -9.6 1.0 3.4 -3.3 -1 .3 .. .. .. .. .. .. .. Equity capital ............................................. -

Net interest income.............. ..................... -3.8 - - - -0.7 -14.0 -5.9 -4.6 -3.9 -3.0 

Net income................................. ......... ...... -24.1 - - - -1.4 -2.3 -32.3 -38.0 -45.6 -54.4 

Noncurrent assets plus 

other real estate owned........................... -33.5 - - - -30.8 -50.4 -26.4 -36.9 -53.9 -29.8 

Net charge-offs .......................................... -21 .1 - - -37.6 -39.9 -13.4 1.5 -19.2 -10.8 

Loan loss provision ................................... -36.9 - - - -42.1 -74.2 -47.9 15.4 -37.2 -30.3 

PRIOR FIRST HALVES 

(The way It was ... ) 

Number of institutions ....................... 1993 : 2,314 1,073 1,068 146 27 838 387 573 171 150 195 

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

2,684 1,251 1,209 193 31 942 491 644 193 172 242 ······ ·································1991 

Total assets (in billions) ..................... 1993 $1,003.9 $54.3 $309.0 $307.5 $333.1 $330.7 $92.0 $150.0 $50.6 $57.8 $322.8 

....................................... 1992 1,077.7 58.0 326.1 354.1 368.3 110.9 154.4 49.4 61 .2 333.5 339.5 1 

·· ·· ·· ······························ ···1991 1,160.7 61.8 347.2 390.4 361 .4 386.0 132.5 163.2 50.4 63.0 365.7 

Return on assets (%) .......... ......... ..... 1993 0.83 1.08 1.00 0.97 a.so i 0.91 0.81 1.08 1.03 1.91 0.41 

.. ..................................... 1992 0.60 0.79 0.70 0.66 0.42 0.73 0.83 0.96 1.44 0.45 0.42 1 

·······································1991 0.03 0.28 0.10 0.06 -0.10 -0.41 0.00 0.50 0.58 0.45 0.16 

Net charge-offs to loans & leases (%) 

....................................... 1993 0.66 0.16 0.28 0.58 1.13 0.71 0.30 0.13 0.14 0.34 1.02 

....................................... 1992 0.60 0.23 0.43 0.71 0.70 0.93 0.41 0.22 0.21 0.31 0.56 

·······································1991 0.62 0.27 0.55 0.75 0.63 1.10 0.59 0.19 0.28 0.47 0.40

Noncurrent assets plus 

OREO to assets (%) ............... 1993 2.63 1.70 2.13 2.84 3.05 3.31 2.10 0.82 1.02 3.37 3.05 

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

·······································1991 3.97 2.38 3.34 4.66 4.10 5.20 3.63 1.40 1.74 9.61 3.29

Equity capital ratio (%) .................... .. 1993 7.56 8.99 8.27 7.46 6.75 7.76 7.93 8.26 7.55 6.81 7.05 

6.70 1 8.08 7.19 6.69 5.99 , 6.72 6.75 7.35 6.27 5.83 6.57 

.......... ............................. 1991 i 5.92 1 7.48 6.49 5.53 5.52 ; 6.21 5.66 6.40 5.10 3.91 5.96 

············· ··························1992 

•Excludes institutions in Resolution Trust Corporation conservatorship and one self-liquidating institution . 

..New accounting rules and/or reporting detail became effective March 31, 1994. See Notes to Users, pp.18-19. 

REGIONS: Northeast- Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts. New Hampshire, New Jersey, New York. Pennsylvania Puerto Rico Rhode Island, Vermont, U.S. Vi'9in Islands " ' 

Southsast-Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia Central - Illinois, Indiana, Kentucky, Michigan, Ohio, Wisconsin 

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

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

West- Alaska, Arizona, Caltlomia, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Pacific Islands, Utah, 

Washington, Wyoming FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 10 Second Quarter, 1994 
TABLE IV-8. Second Quarter 1994, FDIC-Insured Savings Institutions* 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East l West 

SECOND QUARTER Prellminary All than $100 to to than $5 North- South- Mid- South-

(The way It Is ... ) Institutions Million $1 Billion $5 Billion Billion east east Central I west west West 

Number of institutions reporting ................ 2,217 1,032 1,016 140 29 813 354 558 162 144 186 

Total assets (in billions) ... ................ .... ..... . $999.1 $52.4 $295.1 $299.0 $352.6 $337.4 $83.2 $151.6 $52.3 $55.9 $318.8 

Total deposits (in billions) .......................... 756.9 45.3 242.7 220.9 248.1 271.7 64.6 115.8 38.3 36.3 230.3 

Net income (in millions) ............................. 1,858 103 606 492 657 740 195 348 47 163 367 

% of unprofitable institutions ..................... 7.0 7.7 6.0 8.6 10.3 6.3 7.3 4.1 4.9 5.6 21.0 

% of institutions with earnings gains .... ..... 35.2 32.3 36.0 45.7 62.1 43.1 37.9 28.1 27.2 36.1 23.7 

Performance Ratios (annualized, %) 

Yield on earning assets ..... .. .... .................. 6.96 7.19 7.12 7.00 6.76 7.06 7.09 7.06 6.94 6.68 6.82 

Cost of funding earning assets ..... .... ......... 3.56 3.48 3.48 3.56 3.65 3.30 3.68 3.68 3.91 3.81 3.64 

Net interest margin ... .. .. ....... .. .................... 3.40 3.71 3.64 3.44 3.1 1 3.76 3.41 3.39 3.03 2.87 3.17 

Noninterest income to earning assets ... .... 0.71 0.58 0.68 0.70 0.75 0.61 0.81 0.69 0.58 0.99 0.77 

Noninterest expense to earning assets .... 2.61 2.87 2.82 2.63 2.37 2.72 2.61 2.44 2.70 2.42 2.57 

Net operating income to assets ...... ........... 0.75 0.78 0.81 0.68 0.76 0.89 0.94 0.92 0.40 1.16 0.46 

Return on assets... .... .... .... ···· ············· ··· ·· · 0.75 0.79 0.83 0.66 0.75 0.88 0.95 0.93 0.36 1.16 0.46 

Return on equity ............. ....... ....... ............. 9.37 8.20 9.31 8.40 10.61 10.74 11 .10 10.70 4.54 15.92 6.24 

Net charge-offs to loans and leases .......... 0.57 0.14 0.22 0.42 1.03 0.40 0.19 0.10 0.12 0.21 1.1 0 

Loan loss provision to net charge-offs ...... 80.05 108.51 106.42 134.67 58.36 98.85 64.42 159.72 208.59 99.67 69.52 

Growth Rates (year-to-year, %) 

Net interest income .... ............................... -4.1 . . -0.1 -13.4 -6.4 -3.9 -4.2 -5.0 

Net income ............................................... . 6.4 . . . 15.9 -4.3 -17.7 -61.5 -20.9 136.1 

Net charge-offs ... ................ ............... ........ -27.6 . . . -47.2 -13.2 -15.2 -16.3 1.2 -20.2 

Loan loss provision ................................... -47.7 . . . . -40.0 -80.5 -37.9 30.4 -43.3 -49.7 

PRIOR SECOND QUARTERS 

(The way it was ... ) 

Return on assets (%) .... .... .. ..............1993 0.70 1.12 0.96 0.85 0.26 0.78 0.89 1.14 0.97 1.44 0.19 

·· ············ ························ ·1 992 0.55 0.80 0.70 0.62 0.30 0.38 0.73 0.81 1.15 1.28 0.35 

....................................... 1991 -0.10 0.29 -0.09 -0.06 -0.23 -0.68 -0.23 0.53 0.58 0.50 0.07 

Net charge-offs to loans&leases (%) 

....................................... 1993 0.77 0.16 0.31 0.50 1.47 0.74 0.19 0.12 0.15 0.21 1.32 

·· ·· ···········"·· ····· ·· ············· 1992 0.63 0.27 0.49 0.64 0.79 0.96 0.37 0.23 -0.02 0.31 0.65 

····· ··········· ..... . ...............1991 0.69 0.27 0.66 0.75 0.74 1.22 0.74 0.18 0.26 0.34 0.44 

*Excludes mst1tut1ons 1n Resolution Trust Corporation conservatorsh1p and one self-liquidating mst1tut1on. 

FDIC Quarterly Banking Profile 

Second Quarter, 1994 11 FDIC-Insured Savings Institutions 
TABLE V-B. Real Estate Loan Performance and Other Real Estate Owned, FDIC-Insured Savings Institutions• 

Asset Size Distribution Geographic Distribution by Region 

Less $100 Million $1 Billion Greater East I West 

June 30, 1994 All than $100 to to than $5 North- South- Mid- SouthInstitutions Million $1 Billion $5 Billion Billion east east Central I west west West 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ......... ... ............. ..... 1.34 2.00 1.30 1.25 1.34 1.63 1.21 0.98 1.14 1.22 1.33 

Construction, development and land .. ... ................ 0.98 1.22 0.86 1.06 1.15 1.36 0.80 0.98 0.82 0.69 0.99 

Commercial real estate ......................................... 1.56 1.98 1.69 1.56 1.31 1.85 1.52 1.17 1.45 0.73 1.41 

Multifamily residential real estate........................ .. 1.39 1.58 1.13 1.56 1.38 1.89 1.20 0.79 0.56 0.47 1.38 

1-4 Family residential. ..... ........... ..........................• 1.32 2.08 1.28 1.16 1.34 1.57 1.21 0.98 1.16 1.40 1.31 

Percent of Loans Noncurrent•• 

All real estate loans .................. .. .. .. ......................... 1.88 1.29 1.47 1.92 2.25 2.56 1.03 0.65 0.62 1.22 2.25 

Construction, development and land .......•............. 2.67 1.27 2.16 4.63 1.44 5.90 1.79 0.84 0.81 0.88 3.49 

Commercial real estate ............ .................... ......... 3.98 2.37 3.34 4.74 4.30 5.09 2.34 1.90 2.36 2.34 4.01 

Multifamily residential real estate .......................... 3.21 3.39 2.81 3.68 3.05 4.78 1.99 1.07 1.13 2.05 3.15 

1-4 Family residential. ...... ....... .. .. ... .. ......... ....... .. ... 1.40 1.08 1.01 1.07 1.95 1.79 0.75 0.51 0.43 1.08 1.81 

Percent of Loans Charged-off 

(net, annualized) 

All real estate loans ........................... ..... ...... ... ...... .. 0.48 0.09 0.18 0.44 0.79 0.39 0.16 0.08 0.09 0.15 0.86 

Construction, development and land ..................... 0.48 0.20 0.43 0.57 0.62 0.95 0.32 0.14 0.53 0.02 0.67 

Commercial real estate ....... ........................... ....... 1.32 0.35 0.48 1.30 2.61 0.94 0.68 0.45 0.58 1.47 2.28 

Multifamily residential real estate ...... .................... 1.29 0.50 0.53 1.01 1.81 0.58 0.68 0.37 0.25 0.14 1.84 

1-4 Family residential....................................... ..... 0.26 0.03 0.08 0.21 0.46 0.26 0.06 0.03 0.02 0.04 0.47 

Total Loans Outstanding (in billions) 

All real estate loans ............................... .......... ....... . $588.5 $32.9 $174.9 $155.4 $225.3 $176.9 $50.4 $90.2 $27.6 $22.9 $220.5 

Construction, development and land ..... ..... ..... ...... 19.9 1.8 10.0 5.5 2.7 4.2 4.2 4.2 0.9 2.3 4.1 

Commercial real estate ............................ .. ........... 54.3 2.7 20.1 16.9 14.6 22.6 5.0 5.4 2.0 1.7 17.5 

Multifamily residential real estate .......................... 63.7 1.3 12.4 19.6 30.5 14.9 1.6 6.8 1.4 1.5 37.5 

1-4 Family residential. ............. ..... ......................... 450.5 27.0 132.4 113.5 177.5 135.1 39.6 73.9 23.2 17.4 161 .3 

Other Real Estate Owned (In millions)*** 

All other real estate owned ........................... .. .. ....... $5,785 $169 $1 ,773 $2,219 $1,623 $2,582 $385 $257 $133 $586 $1,842 

Construction, development and land .......... .. ... ...... 1,555 22 539 812 183 784 129 37 17 273 315 

Commercial real estate ................................ ......... 1,887 51 694 669 473 838 167 134 91 168 488 

Multifamily residential real estate ............... .. ......... 1,104 21 259 499 326 358 13 32 24 148 529 

1-4 Family residential............................................ 2,015 92 503 506 914 800 119 94 35 68 899 

Troubled Real Estate Asset Rates•••• 

(% of total RE assets) 

All real estate loans ......... ......... .................. .. ........... 2.83 1.80 2.46 3.30 2.95 3.96 1.78 0.94 1.09 3.69 3.06 

Construction, development and land ..................... 9.72 2.48 7.17 16.89 7.76 20.59 4.70 1.71 2.74 11.35 10.37 

Commercial real estate ..... .. .................................. 7.21 4.16 6.57 8.38 7.29 8.48 5.49 4.28 6.53 11.14 6.61 

Multifamily residential real estate ....... .. ........ .. .. .. ... 4.85 4.89 4.80 6.08 4.08 7.02 2.79 1.53 2.74 11 .07 4.49 

1-4 Family residential. ............ ,-.-cc::,···· ······· ··· ········· . . . 1.84 1.42 1.38 1.50 2.45 2.36 1.05 0.64 0.58 1.47 2.36 

*Excludes mst1tut1ons in Resolution Trust Corporation conservatorsh1p and one self-hqu1datmg mst1tut1on. 

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

•••"All other real estate owned" is shown net of valuation allowances. The individual categories of OREO do not net out valuation allowances of TFR filers. 

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

Spread Between Short - Term and Long - Term Ylelds 

30 - Year Treasury Bonds Versus 3 - Month Treasury BIiis Yield(%) 

10 

8 

6 

4 

2 

Yield on 3 - Month Treasury Billa 

0 

1990 1991 1992 1993 1993 1993 1993 1994 1994 

40 40 40 10 20 30 40 1Q 20 

30 - Year Bonds 8.55 7.85 7.53 7.08 6.86 6.32 6.13 6.56 7.36 

3-Month Bills 6.99 4.54 3.07 2.96 2.97 3.00 3.06 3.24 3.99 

Spread 1.56 3.31 4.46 4.12 3.89 3.32 3.07 3.32 3.37 

FDIC Quarterly Banking Profile 

FDIC-Insured Savings Institutions 12 Second Quarter, 1994 
ALL FDIC-INSURED INSTITUTIONS 

• Loan Growth Paces Gain In Total Assets 

• Total Deposits Fall For Second Consecutive Quarter 

• Six Institutions Fail In The Second Quarter 

• BIF Coverage Ratio Rises To 0.93 Percent; SAIF Coverage Ratio Reaches 0.24 Percent 

The nation's 12,932 private-sector FDIC-insured institutions 

recorded total assets of $4.89 trillion on June 30, up $52 

billion (1.1 percent) over March 31. Loan growth for the 

quarter totaled $63 billion, led by 1-to-4 family mortgage 

lending (up $21 billion), loans to individuals (up $18 billion) 

and commercial and industrial loans (up $15 billion). Total 

securities declined $1.7 billion from March to June. 

Asset growth was also funded by a greater proportion of 

nondeposit liabilities, as total deposits dipped slightly during 

the second quarter. Estimated deposits insured by the Bank 

Insurance Fund (BIF), including those at U.S. branches of 

foreign banks, declined $8.2 billion (0.4 percent) during the 

second quarter; estimated deposits insured by the Savings 

Association Insurance Fund (SAIF}, including those at RTC 

conservatorships, fell $5.4 billion (0.8 percent). Growth in 

equity capital kept pace with asset growth despite the impact 

on capital accounts of more than $4 billion in unrealized 

losses on securities available for sale, caused by rising 

interest rates. 

Six FDIC-insured institutions failed in the second quarter of 

1994, after no insured institution failures in the first quarter. 

The second-quarter failures included five BIF members (four 

commercial banks and one savings bank) and one SAIF· 

member savings institution. Failed-institution assets totaled 

$654 million. On June 30, BIF had an estimated balance of 

$17.5 billion, or 93 cents for each $100 of insured deposits. 

SAIF had an estimated balance of $1.7 billion and a coverage ratio of 24 cents (see new items in Table 11-C). 

An institution's insurance fund membership and primary 

federal supervisor are generally determined by the institution's charter type. BIF members are predominantly commercial banks supervised by one of the three federal banking 

agencies, and SAIF members are predominantly savings 

institutions supervised by the Office of Thrift Supervision 

(OTS}. However, charter switches and deposit acquisitions 

can alter the relationships among charter type, primary federal supervisor and insuring fund. These developments are 

discussed below. 

"Sasser" institutions. Since 1989, institutions have been 

permitted to switch charter type and primary federal supervisor without changing insurance fund membership. In the 

second quarter of 1994, 11 SAIF-member institutions 

changed charters, with seven becoming state-chartered savings banks, supervised by the FDIC, and four becoming 

national banks, supervised by the OCC. On June 30, 300 

SAi F-member institutions were subject to supervision by one 

of the three federal banking agencies, including 227 statechartered savings banks and 73 commercial banks. 

"Oakar" deposits. A member of one insurance fund may 

acquire deposits insured by the other fund, but this portion 

of the acquiring institution's deposits retains coverage under 

the other fund. On June 30, 1994, 652 BIF-member institutions held an estimated $154 billion in SAIF-insured deposits, or 22.2 percent of all SAIF-insured deposits; and 34 

SAIF-member institutions held an estimated $5.9 billion in 

BIF-insured deposits, or 0.3 percent of all BIF-insured deposits. Including SAIF members owned by bank holding 

companies, the proportion of SAIF-insured deposits held by 

BIF members and SAIF members affiliated with BIF members increases from 22.2 percent to 27 .6 percent ($191 

billion). 

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

June 30, 1994* 

(dollar figures in millions) Number of Total Total Estimated Insured Deposits 

Institutions Assets Deposits BIF SAIF Total 

Private-Sector Commercial and Savings Institutions 

FDIC-Insured Commercial Banks ................................ ... .. .. .. 10,715 3,892,523 2,765,873 1,722,413 122,916 1,845,329 

BIF-member ....... .................................. ................ ............. 10,642 3,876,486 2,753,458 1,721,523 114,560 1,836 ,083 

SAIF-member ............................................... .. .............. .... 73 16,037 12,414 891 8,355 9,246 

FDIC-Insured Savings Institutions .................. ... ..... ..... ......... 2,217 999,150 756,946 163,006 560,365 723,371 

OTS-Supervised Savings Institutions ......... .. ..... .. ............. 1,612 772,862 572,453 22,670 523,839 546,509 

BIF-member... ... ....... ................................................ .. ... . 18 73,275 54,944 17,663 35,202 52,865 

SAi F-member• ............................ .. .. ... .. .......................... 1,594 699,587 517,509 5,008 488 ,636 493,644 

FDIC-Supervised State Savings Banks ............................ 605 226,287 184,493 140,335 36,526 176,861 

BIF-member ........... .. ... .. ................ ... ... ..... .. ..... ....... .. ...... 378 185,446 150,753 140,332 3,768 144,100 

SAIF-member ........ ....... .... .. .... ... .. .... ... ................... ....... . 227 40,841 33,740 3 32,758 32,761 

Total Private-Sector Commercial and 

Savings Institutions ........................................................ 12,932 4,891 ,673 3,522,819 1,885,419 683,280 2,568,699 

BIF-member ..................... .. .... ........................................... .... 11,038 4,135,207 2,959,155 1,879,518 153,531 2,033,048 

SAIF-member... ....... .............................. .. ... .... ..... .. ..... .......... 1,894 756,466 563,663 5,901 529,750 535,651 

Other FDIC-Insured Institutions 

RTC Conservatorships ........................ .. .. .. ... ........................ 18 1,199 7,847 0 7,776 7,776 

U.S. Branches of Foreign Banks .. ...... .. .. ................ ............. 52 10,874 3,680 2,335 0 2,335 

Total FDIC-Insured Institutions ............................................ 13,002 4,914,546 3,534,346 1,887,754 691 ,056 2,578 ,811 

•Excludes one self-ilqu1dating savings 1nst1tuhon with less than $1 m11l1on in SAIF-insured deposits. 

FDIC Quarterly Banking Profile 

Second Quarter, 1994 13 All FDIC-Insured Institutions 
TABLE 1-C. Selected Indicators, All FDIC-Insured Institutions* 

(dollar figures in millions) f---1'---'9'--'9_4_••___1'---'9'--'9--"3_••---~:_:_c- 1993 - - -'--'-'

1992 =-=---- 1991 1990

Number of institutions reporting ..... .......... ...................... . 12,932 13,513 13,220 13,852 14,482 15,158 

Total assets .................................................... .. ...... ........ . $4,891,673 $4,573 ,253 $4,706,831 $4,535,791 $4,543,612 $4,648,642 

Total deposits ................................................................. . 3,522,819 3,468,520 3,528,255 3,526,945 3,594,272 3,637,267 

Number of problem institutions ........................................ 433 789 572 1,063 1,426 1,492 

Assets of problem institutions (in billions) ....................... . $113 $454 $334 $592 $819 $640 

Number of failed/assisted institutions ............................ .. 6 29 50 181 271 382 

Assets of failed/assisted institutions (in billions) .......... .. .. $0.65 $8.57 $9.69 $88 $142 $145 

••As of June 30. 

TABLE 11-C. Aggregate Condition and Income Data, All FDIC-Insured Institutions* 

(dollar figures in millions) Preliminary 

2nd Quarter 1st Quarter 2nd Quarter % Change 

1994 1994 1993 93:2-94:2 

Number of institutions reporting ....................... .. ..................... . 12,932 13,079 13,513 -4.3 

Total employees (full-time equivalent)................................... .. 1,774,976 1,773,560 1,761 ,018 0.8 

CONDITION DATA 

Total assets ......... .. .......... ..................... .................................. . $4,891,673 $4,839,928 $4,573,253 7.0 

Loans secured by real estate ................. ......................... .. 1,532,386 1,506,330 1,494,636 2.5 

1-4 Family residential ............. .. ........................... ......... . 980,281 959,308 949,517 3.1 

Home equity loans ............................ ........................ .. . 90,796 89,174 93 ,515 -2.9 

Multifamily residential property .................... ................. . 94,283 93,772 92,470 2.0 

Commercial real estate .................................................. 329,245 325,862 321,239 2.5 

Construction, development and land ............................ . 82,504 82,812 88,535 -6.8 

Other real estate loans .................................... ............ .. 46,074 44,576 42,876 7.5 

Commercial & industrial loans ........................ ........... ...... .. 574,237 558,850 543,806 5.6 

Loans to individuals .... ... ... ....................... ................ ......... . 476,616 458,695 426,869 11 .7 

Credit cards & related plans ........................ .. ............ ..... . 168,067 159,847 147,298 14.1 

Other loans & leases ......................................... ............... . 281 ,008 276,442 262,982 6.9 

Less : Unearned income & contra accounts.. .. .. .. .............. . 17,031 15,906 16,847 1.1 

Total loans & leases ............................................ .. .. ........... . 2,847,216 2,784,412 2,711 ,446 5.0 

Less: Reserve for losses .................. .................................. . 60,955 61,753 62,813 -3.0 

Net loans & leases ........................ ........................................ . 2,786,260 2,722,658 2,648,634 5.2 

Securities .......................................... ............. .. ... ............ ..... . 1,140,416 1,142,124 1,074,194 

Other real estate owned ....................................................... . 19,061 21,762 34,368 -44.5 

Goodwill and other intangibles .............................................. 26,057 23,972 23,383 11.4 

All other assets ................................................ .................... .. 919,879 929,412 792,675 

Total liabilities and capital. ........................................ ....... ....... . 4,891 ,673 4,839,928 4,573,253 7.0 

Deposits.. .. .. ............................ .............................................. . 3,522,819 3,523,234 3,468,520 1.6 

Other borrowed funds ........... .. ........ ............... ............ ......... ... 704,833 674,048 572,339 

Subordinated debt. .. .......... .. .. ... .. ..... ..................................... . 39,963 39 ,764 39,633 0.8 

All other liabilities .................................................. ....... ......... . 239,010 222,735 135,401 

Equity capital. ................... ... ... ... .................. ...... ... ................ . 385,048 380,147 357,359 

Loans and leases 30-89 days past due ........ ..................... ...... 34,403 39,793 39,696 -13.3 

Noncurrent loans and leases ................................................ .. . 47,693 53,162 68,777 -30.7 

Restructured loans and leases .................... ........................... . 15,025 15,651 24,238 -38.0 

Direct and indirect investments in real estate.. ..... ................. .. 1,176 1,320 1,509 -22.1 

Mortgage-backed securities ....... ............................................ . 545,564 538,577 522,426 

Earning assets ....... ........... ....... ....................................... ......... 4,269,511 4,239,782 4,086,285 4.5 

Unused loan commitments .. ... ..... ...... ......... ........................ ... .. 1,666,956 1,632,895 1,425,773 16.9 

Including RTC conservatorships and /BA 's: 

Estimated BIF-insured deposits ........ ............ .................. ... .. . 1,887,754 1,895,911 1,893,947 -0.3 

Domestic deposits (reflects Oakar adjustments) ......... ...... 2,437,809 2,461,564 2,445,566 -0.3 

BIF balance (unaudited figures) ................................. ....... 17,490 15,238 6,769 158.4 

BIF coverage ratio (0/o)**........ ........................................... 0.93 0.80 0.36 

Estimated SAIF-insured deposits ..................... .............. ...... 691 ,057 696,428 714,196 -3.2 

Domestic deposits (reflects Oakar adjustments) ............. .. 719,140 725,794 742,869 -3.2 

SAIF balance (unaudited figures) .. .. .................................. 1,662 1,418 638 160.5 

SAIF coverage ratio(%)****.. .......... .................................. . 0.24 0.20 0.09 

Estimated FDIC-insured deposits, BIF and SAIF .. ...... ....... .. 2,578,811 2,592,339 2,608,143 -1 .1 

Preliminary Preliminary 

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

INCOME DATA 1994 1993 %Change 1994 1993 93:2-94:2 

Total interest income .......... .............................. .... . $156,596 $156,171 0.3 $80,383 $78,180 2.8 

Total interest expense .......................................... . 69,323 70,620 -1 .8 35,987 35,061 2.6 

Net interest income ........... ... ............................. .. 87,273 85,551 2.0 44,396 43,119 3.0 

Provision for loan losses ....................................... 6,970 11,291 -38.3 3,511 5,665 -38.0 

Total noninterest income ............................ .. ..... .. . . 40,135 40,072 0.2 20,129 20,594 -2.3 

Total noninterest expense .. ... ...................... .. ...... . . 82 ,168 81 ,856 0.4 41 ,597 41,029 1.4 

Securities gains (losses) ........... ........................... . 785 1,980 -60.3 187 868 -78.5 

Applicable income taxes ....................................... . 13,458 11 ,455 17.5 6,541 5,951 9.9 

Extraordinary gains , net. ...................................... . (192) 2,226 NIM 6 146 -96.0 

Net income ........................................................ .. 25,406 25,226 0.7 13,069 12,081 8.2 

"Excludes 1nst1tut1ons in RTC conservatorsh1p, one seH-hqu1dat1ng savings 1nst1tut1on, insured branches of foreign banks (IBA's), unless indicated otherwise . 

...New accounting rules and/or reporting detail became effective March 31, 1994. See Notes to Users, pp. 18-19. N/M-Not meaningful 

....Coverage ratios reflect the insurance fund balance as a percentage of estimated insured deposits. 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 14 Second Quarter, 1994 
TABLE 1-0. Selected Indicators, BIF-Member Depository Institutions* 

(dollar figures in millions) ,____19_9_4_**___1_99_3_*_* ___1_9_9_3____19_9_2____1_99_1 ____1_9_9_0 

Number of institutions reporting ................................. .... . 11 ,038 11 ,541 11,291 11,813 12,305 12,791 

Total assets .................................................................... . $4,135,207 $3,808,824 $3,949,479 $3,711,525 $3,660,425 $3,646,838 

Total deposits ................... ........... ................................... . 2,959,155 2,879,640 2,951 ,765 2,873,080 2,881,739 2,861,441 

Number of problem institutions .............................. .. ........ 360 636 472 856 1,089 1,046 

Assets of problem institutions (in billions) .............. ......... . $54 $362 $269 $464 $610 $409 

Number of failed/assisted institutions.. .... .............. .......... 5 23 41 122 127 169 

Assets of failed/assisted institutions (in billions) .......... .. . . $0.56 $2.61 $3.56 $44 $63 $15 

**As of June 30. 

TABLE 11-0. Selected Aggregate Condition and Income Data, BIF-Member Depository Institutions* 

(dollar figures in millions) Preliminary 

2nd Quarter 1st Quarter 2nd Quarter % Change 

1994 1994 1993 93:2-94:2 

Number of institutions reporting ................... ........................... . 11,038 11,172 11 ,541 -4.4 

Commercial banks .. ... ... ... ................................. ... ... ............. . . 10,642 10,767 11,131 -4.4 

Savings institutions.. .. ............... ........... ................... .............. . 396 405 410 -3.4 

Total employees (full-time equivalent) ...... ............................. .. 1,556,547 1,550,622 1,541,626 1.0 

CONDITION DATA 

Total assets.. ... ..................................................... ........ .......... . $4,135,207 $4,087,402 $3,808,824 8.6 

Loans secured by real estate, total .. ..... .. ............................. .. 1,084,301 1,064,763 1,037,967 4.5 

1-4 Family residential. .. ... .. .. ......................... ...... ........... ...... 630,710 616,341 593,970 6.2 

Multifamily residential property ........ ....................... ........... . . 49,558 48,502 46,434 6.7 

Commercial real estate ... .......................... .......................... . 293,442 289,220 282,155 4.0 

Construction, development and land ............... ................... . 64,602 66,185 72,583 -11.0 

Commercial & industrial loans .................................... .......... . 568,850 553,581 537,887 5.8 

Reserve for losses ... .. .................................. .......... ... ...... .... . 55,036 55,547 56,700 -2.9 

Total deposits ....................................................................... . 2,959,155 2,953,367 2,879,640 2.8 

Estimated insured deposits ......... ...... ... ................................ . 2,033,048 2,033,255 2,017,081 0.8 

BIF-insured deposits (estimated) .... .... ...... .. ... ... .................. . 1,879,518 1,887,977 1,886,298 -0.4 

SAIF-insured deposits (estimated) .................... ................ .. 153,531 145,278 130,784 17.4 

Noncurrent loans and leases .. ..................... .. ........... ............ . 39,926 44,723 59,027 -32.4 

Other real estate owned .......................................... ............. . 15,053 16,985 26,271 -42.7.. Equity capital. .... ........ .... .................................. .. ................... . 325,320 321,134 300,294 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions: 

Well capitalized ..................................................................... . 10,837 10,943 11 ,216 -3.4 

Adequately capitalized .. .. ...... ........ ..... ............. ......... ............. . 159 179 229 -30.6 

Undercapitalized ....... ................... ............................ ............. . 20 20 50 -60.0 

Significantly undercapitalized ......................................... .. .... . 15 22 32 -53.1 

Critically undercapitalized ............................ ........ ................ . . 7 8 14 -50.0 

Total assets : 

Well capitalized ................ .. ...... ..... ................................... ..... . $4,012,027 $3,930,803 $3,642,153 10.2 

Adequately capitalized .............................. .. ........... ............... . 118,661 150,104 149,450 -20.6 

Undercapitalized ........................................................ .......... . . 2,028 1,415 9,085 -77.7 

Significantly undercapitalized ................................. .......... ... . 1,645 4,029 7,157 -77.0 

Critically undercapitalized .. ... .. .. ............................... ........ ..... . 846 1,051 979 -13.6 

Preliminary Preliminary 

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

INCOME DATA 1994 1993 %Change 1994 1993 93:2-94:2 

Net interest income ...... .. ........................ .. ... ... ...... . $75,903 $73,542 3.2 $38,672 $37,058 4.4 

Provision for loan losses ..................................... .. 5,895 9,947 -40.7 2,962 4,956 -40.2 

Net income .... ... ... ...... ......... ... .. .............. ... .... .. ...... . 23,382 21,748 7.5 11,787 10,450 12.8 

Net charge-offs .... ............. ..... ............... ...... .......... . 6,117 9,897 -38.2 3,286 5,293 -37.9 

Number of institutions reporting net losses........... 411 568 -27.6 461 623 -26.0 

*Excludes insured branches of foreign banks. 

**New accounting rules and/or reporting detail became effective March 31 , 1994. See Notes to Users, pp. 18-19. 

FDIC Quarterly Banking Profile 

Second Quarter, 1994 15 BIF-Member Depository Institutions 
(dollar figures in millions) 1----19_ _ _ _ 94** _ _ _ 1_99_3_*_* _ _ _ _ _ 1993 _______ 1992 _ 1991 1990

Number of institutions reporting .............. ...... ....... .. .. ...... . 1,894 1,972 1,929 2,039 2,177 2,367 

Total assets .............. .. .. .............................................. .. .. . $756,466 $764,429 $757,352 $824,266 $883,187 $1,001,804 

Total deposits ...... ... ........................ ............ .. .. ........ ........ . 563,663 588,880 576,490 653,865 712,533 775,826 

Number of problem institutions ....................................... . 73 153 100 207 337 446 

Assets of problem institutions (in billions) ............ ........... . $59 $92 $65 $128 $209 $231 

Number of failed/assisted institutions .... ......................... . 1 6 9 59 144 213 

Assets of failed/assisted institutions (in billions) ............. . $0.09 $5.96 $6.13 $44 $79 $130 

**As of June 30. 

TABLE 11-E. Selected Aggregate Condition and Income Data, SAIF-Member Depository Institutions* 

(dollar figures in millions) Preliminary 

2nd Quarter 1st Quarter 2nd Quarter % Change 

1994 1994 1993 93:2-94:2 

Number of institutions reporting .................... ...... ................... .. 1,894 1,907 1,972 -4.0 

Commercial banks ......................................... ....................... . 73 72 68 7.4 

Savings institutions ................................................ .. .............. 1,821 1,835 1,904 -4.4 

Total employees (full-time equivalent) .............. ..................... .. 218,429 222,938 219,392 -0.4 

CONDITION DATA 

Total assets ... ... .. .................................................................... . $756,466 $752,526 $764,429 -1 .0 

Loans secured by real estate, total. ............. ..... ...... ............. . . 448,085 441,568 456,669 -1 .9 

1-4 Family residential. ........................................................ . 349,571 342,967 355,547 -1 .8 

Multifamily residential property ........................... ..... ... ........ . 44,724 45,271 46,036 -2.9 

Commercial real estate ..................... ....... ........................... . 35,802 36,643 39,083 -8.4 

Construction, development and land.. .. .. .. .......................... . 17,902 16,627 15,951 12.2 

Commercial & industrial loans ................. .. ........................... . 5,387 5,269 5,919 -9.0 

Reserve for losses .................................. ............................ . 5,919 6,206 6,112 -3.2 

Total deposits ...... .......................................... ....................... . 563,663 569,867 588,880 -4.3 

Estimated insured deposits .................................................. . 535,651 540,671 560,784 -4.5 

BIF-insured deposits (estimated) ................ .. .. ... ....... ......... .. 5,901 5,584 5,235 12.7 

SAIF-insured deposits (estimated) ................. ......... ...... .... .. 529,750 535,087 555,549 -4.6 

Noncurrent loans and leases.. ... ........................ .. ................. . 7,767 8,439 9,749 -20.3 

Other real estate owned ................................................. .. .... . 4,007 4,777 8,097 -50.5 

Equity capital. ................... ............ ........................... ... .......... . 59,728 59,013 57,065 

CAPITAL CATEGORY DISTRIBUTION 

Number of institutions: 

Well capitalized ............................... ................................. ..... . 1,789 1,798 1,790 -0.1 

Adequately capitalized ......................................... ................ . 91 98 137 -33.6 

Undercapitalized ......... .................................................... ...... . 7 9 23 -69.6 

Significantly undercapitalized ........................................... .... . 6 2 14 -57.1 

Critically undercapitalized .................. ...................... ............ .. 1 0 8 -87.5 

Total assets : 

Well capitalized ...... ... .. .. ............... ...... ......... ...... .... ...... .. ........ . $661,347 $646,602 $655,556 0.9 

Adequately capitalized ... .......................... ......................... .... . 85,677 99,520 78,014 9.8 

Undercapitalized ....................................... ............................ . 2,823 6,184 6,184 -54.4 

Significantly undercapitalized .................................. ... .. ....... . 2,561 220 19,154 -86.6 

Critically undercapitalized ........... .. .. ................. ..................... . 4,058 0 5,521 -26.5 

Preliminary Preliminary 

First Half First Half 2nd Quarter 2nd Quarter 3⁄4Change 

J!.I.COME_P.~ TA 1994 1993 3⁄4Change 1994 1993 93:2-94:2 

Net interest income...... ......................... ................ $11,370 $12,009 -5.3 $5,724 $6,061 -5.6 

Provision for loan losses.............. ....... .... ... ........... 1,075 1,344 -20.0 549 709 -22.6 

Net income ..................................... .......... .... ....... .. · 2,024 3,478 -41 .8 1,281 1,631 -21.4 

Net charge-offs.. .. .................................................. 1,268 1,061 19.4 722 532 35.8 

Number of institutions reporting net losses........... 122 91 34.1 132 98 34.7 

· *Excludes institutions in Resolution Trust Corporation conservatorship and one self-liquidating institution. 

•• New accounting rules and/or reporting detail became effective March 31, 1994. See Notes to Users, pp. 18-19. 

FDIC Quarterly Banking Profile 

SAIF-Member Depository Institutions 16 Second Quarter, 1994 
Number of FDIC - Insured 11

Problem11 Institutions 

1990 - 1994 

Number of Institutions 

2000 - Commercial Banks 

Savings Institutions 

1500 

1000 

500 

0 

12/90 12/91 03/92 06/92 09/92 12/92 03/93 06/93 09/93 12/93 03/94 06/94 

Savings Institutions 480 410 381 349 318 276 255 209 169 146 118 95 

Commercial Banks 1,012 1,016 981 956 909 787 671 580 496 426 383 338 

Assets of FDIC - Insured 11Problem11 Institutions 

1990 - 1994 

$ Amounts in Billions 

1,000 - Commercial Banks 

Savings Institutions $819 $809 

800 

600 

400 

200 

0 

12/90 12/91 03/92 06/92 09/92 12/92 03/93 06/93 09/93 12/93 03/94 06/94 

Savings Institutions 298 291 274 245 223 184 167 128 103 92 89 71 

Commercial Banks 342 528 535 495 488 408 377 326 281 242 53 42 

FDIC Quarterly Banking Profile 

Second Quarter, 1994 17 All FDIC-Insured Institutions 
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 1-8 through V-8.) 

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 that have been placed in Resolution Trust Corporation 

conservatorship 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 1-C through 11-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 SAIFmember tables each include deposits from both insurance funds. 

Depository institutions that are not insured by the FDIC through 

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

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

foreign countries and non-deposit trust companies are not included. Efforts are made to obtain financial reports for all active 

institutions. However, in some cases, final financial reports are not 

available for institutions that are 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) Ca// 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 Financial Time 

Series (FTS) 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 Ca// Reports. The detailed schedules 

of the Thrift Financial Report reflect the consolidation of the parent 

thrift with all finance subsidiaries. All other subsidiaries are reported as investments on an equity basis or a cost basis. Some 

accounting differences exist, such as asset sales with recourse, 

for which the data necessary to reconcile these differences are not 

reported. 

All asset and liability figures used in calculating performance ratios 

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

amount plus end-of-period amount plus any interim periods, divided by the total number of periods). For "pooling-of-interest'' 

mergers, the assets of the acquired institution(s) are included in 

average assets since the year-to-date income includes the results 

of all merged institutions. No adjustments are made for "purchase 

accounting" mergers. Growth rates represent the percentage 

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

period to totals for institutions in the current period. Tables Ill and 

IV do not provide growth rates for the "Asset Size Distribution" since 

many institutions migrate between size groups. 

RECENT ACCOUNTING CHANGES 

FASB Statement 115, "Accounting for Certain Investments in Debt 

and Equity Securities." Requires that securities that are not held in 

trading accounts be measured at either amortized cost or fair 

(market) value, depending on their classification category. For 

additional details, see "Notes to Users," First Quarter, 1994, Quarterly Banking Profile. 

FASB Interpretation 39, "Offsetting of Amounts Related to Certain 

Contracts." Covers fair value amounts recognized as assets and 

liabilities on the balance sheet for off-balance-sheet derivative 

contracts under which the amounts to be received or paid or items 

to be exchanged depend on future events or other factors (e.g., 

future and forward contracts, interest-rate swaps, exchange-rate 

swaps, and other conditional and exchange contracts). For additional details, see "Notes to Users," First Quarter, 1994, Quarterly 

Banking Profile. 

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 /94, FASB Interpretation 39 limited the 

netting of related trading assets and liabilities, which had the effect 

of increasing the amount of trading account assets reported. 

All other liabilities - bank's liability on acceptances, limited-life 

preferred stock, and other liabilities. Effective 3/31/94, includes 

revaluation losses on assets held in trading accounts. 

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 

Capital• Capital• Leverage Equity 

Well-capitalized 2:10% and 2:6% and 2:5% 

Adequately capitalized 2:8% and 2:4% and 2:4% 

Undercapitalized <8% or <4% or <4% 

Significantly 

undercapitalized <6% or <3% or <3% 

Critically undercapitalized - ~% 

•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 mortgage 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. 

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. 

FDIC Quarterly Banking Profile 

All FDIC-Insured Institutions 18 Second Quarter, 1994 
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 - or the RTC - 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 

mortgage 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. Effective 3/31/94, the full implementation of FASB 115 

meant that a portion of banks' mortgage-backed securities portfolio 

is now reported based upon fair (market) values; previously, all 

mortgage-backed securities not held in trading accounts were 

reported at either amortized cost or lower of cost or market. 

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 debt securities and other assets were not 

included prior to March 1991. 

Noncurrent loans & leases - the sum of loans and leases 90 

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

Number of institutions reporting - the number of institutions 

that actually filed a financial report. 

Off-balance-sheet derivatives - represents the sum of the following: interest-rate contracts, defined as: the notional value of 

interest-rate swaps, futures and forward contracts and option contracts; foreign-exchange-rate contracts and commodity 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 avariety of underlyings, including the traditional agricultural or physical 

commodities, as well as currencies and interest ri,ltes. 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 astated 

price (strike price) during a period or on a specified future date, in return for 

compensation (such as a lee 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 

FDIC Quarterly Banking Profile 

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 and 

obligations under capitalized leases. Effective 3/31/94, includes 

newly-reported item ''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 SAIFmember institutions whose primary federal regulator is the OTS, 

the OTS composite rating is used. 

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 off-balancesheet items multiplied by risk-weights that range from zero to 100 

percent. A conversion factor is used to assign a balance sheet 

equivalent amount for selected off-balance-sheet accounts. 

SAIF-insured deposits (estimated) - the 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. Effective 

3/31/94, the full implementation of FASB 115 meant that a portion 

of banks' securities portfolios is now reported based upon fair 

(market) values; previously, all securities not in held trading accounts 

were reported at either amortized cost or lower of cost or market. 

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. 

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. Beginning 

3/31/94, new reporting detail permits the exclusion of other borrowed money with original maturity of more than one year; previously, all other borrowed money was included. Also beginning 

3/31/94, the newly-reported item "Trading liabilities," less revaluation losses on assets held in trading accounts, is included. 

Yield on earning assets - total interest, dividend and fee income 

earned on loans and investments as a percentage of average 

earning assets. 

Second Quarter, 1994 19 All FDIC-Insured Institutions