Profits and Balance Sheet Developments at U.S. Commercial Banks in 2000.The profitability of the U.S. commercial banking industry remained robust in 2000, but returns on equity and on commercial bank assets fell back somewhat from the peaks reached in 1999 (chart 1). Aggregate earnings were depressed in 2000 by a substantial one-time charge at a single large bank and by the ongoing restructuring at one of the nation's largest bank holding companies. Even after accounting for those special factors, however, overall profitability was still down in 2000. The major factors in the decline were a continuation of the narrowing in net interest margin that dates from the extraordinarily high levels of the early 1990s, a significant increase in loan-loss provisions, and a notable slowing in the growth of noninterest income. [Graph omitted] During the first half of last year, the Federal Reserve raised the intended level of the federal funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements.Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve requirements. See also: Federal Reserve System, Federal Funds Rate, Federal Reserve Bank, Open Market Operations, Reserve Requirement rate three times--twice by 25 basis
points and once by 50 basis points (chart 2). Longer-term interest rates
also moved up over that period, particularly on high-yield debt. By
June, however, signs that the economy was cooling from its frenetic pace
of the previous six quarters prompted market participants to lower the
odds of further tightening by the Federal Reserve; longer-term interest
rates started leveling off or falling, and they generally continued to
decline over the second half of the year. By December, the Baa corporate
bond rate had fallen more than 1 percentage point from a peak of 9.02
percent in May, and rates on thirty-year fixed-rate mortgages had
dropped even more, to 7.13 percent. By contrast, the slowing economy and
rising default rates led to problems for below-investment-grade business
borrowers; yields on junk bonds rose 296 basis points over the year, to
14.08 percent.[Graph omitted] The growth of both loans and securities on banks' books picked up in 2000. The acceleration in loan growth resulted mainly from a marked decline in securitizations which boosted the growth of consumer loans in bank portfolios. In addition, business and real estate lending was robust. The faster growth of securities was due to a surge in trading accounts, as runoffs of U.S. Treasury securities damped growth of investment accounts.
1. Annual rates of growth of balance sheet items, 1991-2000
Percent
Item 1991 1992 1993
Assets 1.33 2.19 5.68
Interest-earning assets 1.98 2.53 6.56
Loans and leases (net) -2.65 -1.04 6.05
Commercial and industrial -9.10 -4.10 .52
Real estate 2.73 1.94 6.13
Booked in domestic offices 2.90 2.57 6.17
One- to four-family
residential 7.76 7.53 11.08
Other -1.93 -2.86 .22
Booked in foreign offices -2.35 -17.80 4.67
Consumer -2.55 -1.66 9.06
Other loans and leases -4.91 -4.24 9.97
Loan-loss reserves and
unearned income -3.78 -4.85 -5.82
Securities 16.23 12.29 12.26
Investment account 14.42 11.44 8.11
U.S. Treasury 32.01 23.95 7.24
U.S. government agency and
corporation obligations 15.88 12.77 9.62
Other -2.56 -5.20 6.09
Trading account 38.88 21.01 51.84
Other 2.82 1.57 -7.90
Non-interest-earning assets -3.10 -.32 -.86
Liabilities 1.01 1.35 5.12
Core deposits 5.25 5.09 1.49
Transaction deposits 3.38 14.62 5.47
Savings and small time deposits 6.24 .18 -.85
Managed liabilities(1) -6.19 -6.07 12.30
Deposits booked in foreign
offices 3.81 -5.85 15.06
Large time -19.73 -26.20 -9.21
Subordinated notes and
debentures 4.69 34.90 10.82
Other managed liabilities -1.39 6.94 22.18
Other -4.18 -1.02 15.30
Equity capital 5.98 13.75 12.58
MEMO
Commercial real estate loans(2) -2.58 -4.03 -.60
Mortgage-backed securities 19.27 10.37 9.66
Item 1994 1995 1996
Assets 8.06 7.55 6.10
Interest-earning assets 5.30 7.69 5.68
Loans and leases (net) 9.83 10.53 8.12
Commercial and industrial 9.33 12.26 7.24
Real estate 7.90 8.32 5.45
Booked in domestic offices 7.64 8.47 5.51
One- to four-family
residential 10.09 10.05 4.66
Other 4.35 6.24 6.75
Booked in foreign offices 18.35 2.81 3.18
Consumer 16.01 9.50 4.90
Other loans and leases 5.29 14.23 22.28
Loan-loss reserves and
unearned income -2.21 .25 -.06
Securities -4.14 .57 .86
Investment account -1.73 -1.58 -1.10
U.S. Treasury -8.46 -19.21 -14.28
U.S. government agency and
corporation obligations .87 6.43 3.63
Other 2.49 4.20 1.83
Trading account -20.46 18.51 14.44
Other 3.25 7.64 -0.90
Non-interest-earning assets 30.22 6.61 8.88
Liabilities 8.31 7.17 5.96
Core deposits -.17 3.96 4.13
Transaction deposits -.32 -3.09 -3.44
Savings and small time deposits -.07 8.37 8.35
Managed liabilities(1) 17.58 10.44 9.66
Deposits booked in foreign
offices 30.89 5.13 4.27
Large time 8.72 19.61 21.17
Subordinated notes and
debentures 9.23 6.61 17.74
Other managed liabilities 12.91 11.24 8.21
Other 79.17 20.46 2.60
Equity capital 5.24 12.00 7.73
MEMO
Commercial real estate loans(2) 4.01 6.34 7.67
Mortgage-backed securities -3.12 .67 2.06
Item 1997 1998 1999
Assets 9.23 8.25 5.42
Interest-earning assets 8.88 8.18 5.98
Loans and leases (net) 5.33 8.90 8.01
Commercial and industrial 12.02 12.94 8.07
Real estate 9.30 7.98 12.18
Booked in domestic offices 9.52 7.96 12.32
One- to four-family
residential 9.67 6.35 9.65
Other 9.32 10.30 16.03
Booked in foreign offices .34 8.79 6.28
Consumer -2.19 -.99 -1.48
Other loans and leases -7.91 14.07 6.28
Loan-loss reserves and
unearned income -.50 3.49 2.33
Securities 8.85 8.39 5.09
Investment account 8.66 12.05 6.66
U.S. Treasury -8.86 -25.17 -1.88
U.S. government agency and
corporation obligations 14.18 16.98 1.82
Other 11.21 26.97 20.83
Trading account 9.97 -13.30 -6.93
Other 45.13 2.34 -7.58
Non-interest-earning assets 11.47 8.64 1.93
Liabilities 9.12 8.12 5.55
Core deposits 4.52 7.05 .20
Transaction deposits -4.55 -1.41 -8.99
Savings and small time deposits 9.03 10.73 3.77
Managed liabilities(1) 13.83 9.60 15.50
Deposits booked in foreign
offices 11.13 8.71 14.60
Large time 20.14 9.10 14.18
Subordinated notes and
debentures 21.05 17.00 5.07
Other managed liabilities 12.23 9.87 17.68
Other 23.79 8.54 -6.38
Equity capital 10.45 9.61 3.92
MEMO
Commercial real estate loans(2) 10.12 11.37 15.39
Mortgage-backed securities 14.15 22.09 -3.34
MEMO:
Dec.
2000
Item 2000 (billions
of
dollars)
Assets 8.75 6,170
Interest-earning assets 8.69 5,335
Loans and leases (net) 9.36 3,711
Commercial and industrial 8.00 1,042
Real estate 10.74 1,658
Booked in domestic offices 11.01 1,626
One- to four-family
residential 9.28 909
Other 13.29 718
Booked in foreign offices -1.62 32
Consumer 8.65 588
Other loans and leases 8.33 489
Loan-loss reserves and
unearned income 7.96 66
Securities 6.37 1,219
Investment account 2.87 1,058
U.S. Treasury -32.72 74
U.S. government agency and
corporation obligations 3.75 618
Other 13.42 366
Trading account 37.16 161
Other 9.73 405
Non-interest-earning assets 9.18 835
Liabilities 8.59 5,648
Core deposits 7.53 2,876
Transaction deposits -1.23 671
Savings and small time deposits 10.51 2,206
Managed liabilities(1) 8.80 2,369
Deposits booked in foreign
offices 7.84 707
Large time 19.39 564
Subordinated notes and
debentures 13.98 86
Other managed liabilities 3.91 1,012
Other 15.45 403
Equity capital 10.51 522
MEMO
Commercial real estate loans(2) 12.14 717
Mortgage-backed securities 3.29 464
NOTE. Data are from year-end to year-end.
(1.) Measured as the sum of deposits in foreign offices, large time
deposits in domestic offices, federal funds purchased and securities
sold under repurchase agreements, demand notes issued to the U.S.
Treasury, subordinated notes and debentures, and other borrowed money.
(2.) Measured as the sum of construction and land development loans
secured by real estate; real estate loans secured by nonfarm
nonresidential properties; real estate loans secured by multifamily
residential properties; and loans to finance commercial real estate,
construction, and land development activities not secured by real
estate.
Following a lull in 1999, bank merger activity bounced back a bit in 2000, but the number of deals remained well below the 1994-98 average of about 575 per year. A spate of bank holding company consolidations of formerly independent bank subsidiaries helped boost to 474 the number of banks that merged, were bought outright, or otherwise changed their charters in 2000. Only five banks failed, two fewer than in 1999. Meanwhile, 215 new banks were created, down from 255 in 1999; the result was a net reduction of 264 in the number of commercial banks operating in the United States, to 8,356 as of December 31, 2000 (chart 3, top panel).(1) [Graph omitted] Mergers enlarged the share of bank assets held by the 100 largest commercial banks, from 71 percent in 1999 to 73 percent in 2000 (chart 3, bottom panel). The combination of Fleet Bank and BankBoston created the nation's fourth largest commercial bank, and as a result, the share of assets held by the 10 largest banks increased more than 2 percentage points, to 38 percent. Adjusted to reflect the effects of mergers, however, assets at the 10 largest banks grew only 4.5 percent, about half the rate of growth of all commercial bank assets. The number of mergers between bank holding companies (BHCs) declined from 211 in 1999 to 179 in 2000, the lowest level of merger activity since 1992. The number of BHCs declined a net of only 23 over the year, to 5,931. The share of banking and nonbanking assets held by the top 50 BHCs remained at just over 76 percent for the third consecutive year, even though the share was bolstered by the December 31 union of J.P. Morgan and Chase Manhattan. BALANCE SHEET DEVELOPMENTS The growth of total bank assets accelerated from 5.4 percent in 1999 to 8.8 percent in 2000 (table 1), the second highest pace since 1985. A vigorous expansion of total loans and leases reflected strong growth in business loans, continued rapid expansion in residential and commercial real estate lending, and a sharp rebound in the growth of consumer loans on banks' books. Despite a record contraction in holdings of U.S. Treasury securities that in part reflected a reduced supply of such instruments, overall growth of securities picked up, especially for those held in trading accounts. Business lending was supported by merger-related financing and by the rapid pace of business outlays on plant and equipment, which both continued at a vigorous pace well into 2000 despite the rise in market interest rates over much of 1999. During the second half of 2000, however, merger activity and business fixed investment fell off a great deal. Moreover, mounting concerns about a more uncertain and less favorable economic outlook led banks to tighten lending standards and terms. Thus squeezed by a falloff in demand and a crimp in supply, the growth of commercial and industrial (C&I) and commercial real estate loans had slowed appreciably by the end of the year. Declining mortgage rates over much of 2000 maintained the growth of residential mortgages at about the robust pace of 1999. Generally strong consumer spending also supported lending to households. However, a sharp rebound in consumer loans on banks' books came mainly from a slowdown in securitizations. Core deposits accelerated smartly in 2000 after a virtual cessation of inflows during 1999. The pickup may have reflected an increased demand for safe and liquid assets in the face of declining and sometimes volatile equity markets. Loans to Businesses In the first half of 2000, C&I loans expanded at an annual rate of 12.9 percent. This borrowing activity was supported by a rise in spending on capital goods that exceeded the increase in internally generated funds (chart 4). During the second half, however, business fixed investment advanced little, and the need for merger-related financing fell as the total dollar volume of completed mergers and acquisitions among large, domestic, nonfinancial corporations dropped more than half. As a result, C&I loans expanded at only a 2.9 percent annual rate during that period. The reduced need for credit was reflected in a sharp drop in C&I loan demand, as perceived by lenders responding to the Federal Reserve's Senior Loan Officer Opinion Survey on Bank Lending Practices (informally, the bank lending practices survey, or BLPS BLPS - Base Level Personnel System BLPS - Boon Lay Primary School (Singapore)), which covers about sixty large domestic banks and twenty-four U.S. branches and agencies of foreign banks (chart 5, top panel). [Graphs omitted] On the supply side, commercial banks significantly tightened their business lending standards, according to BLPS respondents. In the third quarter of 2000, the net percentage of surveyed domestic banks that reported tightening standards and terms on C&I loans to large and medium-sized firms rose to more than 30 percent, which was comparable to that reported during the financial turmoil in the second half of 1998 (chart 5, middle panel). Conditions apparently tightened further in the final quarter of the year, when more than 40 percent of domestic institutions, on net, indicated that they raised standards on C&I loans to large and medium-sized businesses. Similarly, the net percentage of banks that widened loan spreads over their cost of funds and the net percentage of banks that raised premiums charged on riskier loans increased dramatically in the later part of 2000 (chart 5, bottom panel). Apart from increased uncertainty and a less favorable economic outlook, BLPS respondents most often cited a reduced tolerance for risk as reasons for tightening lending standards and terms. The evidence of a shift to more stringent business credit standards was corroborated by information from the Federal Reserve's quarterly Survey of Terms of Business Lending (STBL STBL - Sprint Test Bed Labs STBL - Stable).(2) The average spread of rates charged on new C&I loans over the intended federal funds rate (adjusted for changes in the composition of loan originations) remained in a narrow, elevated range during all of last year (chart 6). The overall average spread, however, encompasses loans extended under previous commitments, and such loans were less likely to have been affected by the concerns about the pricing of credit risk that intensified during the latter part of the year. Indeed, in the STBL, the average spread of rates charged on new C&I loan extensions that were not made under previous commitments (adjusted for changes in the composition of loan originations) trended up notably last year (chart 6). [Graph omitted] Credit flow patterns from the STBL also suggested tighter financial conditions for business borrowers, particularly for higher-risk loans not made under commitment; such loans fell significantly in 2000, bottoming out at about 6 percent as a share of total C&I loan originations reported in the STBL (chart 7).(3) By contrast, a marked rise late in the year in the share of lower-risk loans made under previous commitments suggested that domestic commercial banks continued to extend credit to their better-rated customers. As noted below, in the section on profitability, such shifts apparently held down interest earnings on business loans last year. [Graph omitted] The growth of commercial real estate loans slowed from 15.4 percent in 1999 to a still impressive 12.1 percent in 2000. The within-year pattern of this lending resembled that of C&I lending. Commercial real estate loans expanded at an average annual rate of more than 15 percent for the first half of 2000 as the growth of investment in nonresidential structures accelerated notably. All categories of commercial real estate loans--multifamily housing, construction and land development, and nonfarm, nonresidential real estate--followed the pattern. Buoyed by a strong housing market, multifamily housing loans advanced most rapidly, maintaining the 23 percent rate of growth posted in 1999. Construction and land development loans grew 21 percent, on average, in the first half of 2000, about the same pace as in 1999, and nonfarm, nonresidential real estate loans accelerated from about 12 percent in 1999 to 14 percent over the same period. In the second half of 2000, however, as the pace of nonresidential investment moderated and as banks started to tighten standards, the average growth of commercial real estate loans slowed to about an 8 percent annual rate (chart 8). The most abrupt slowdown was in multifamily housing, where loan growth dropped more than 20 percentage points to about 2.5 percent. The deceleration in the other two categories was considerably less pronounced. [Graph omitted] Loans to Households The stock of consumer loans held by banks registered its biggest increase since 1995, rising 8.7 percent. A significant part of last year's advance was due to a sharp slowdown in the rate of securitization of these loans. Including securitized loans, consumer loans originated by domestic commercial banks expanded 7.5 percent in 2000, up from 4.8 percent in 1999, a move supported by resilient consumer spending in the face of a marked slowing in economic growth. The decline in the proportion of consumer loans that are securitized--the share fell in the first quarter of 2000 for the first time since 1994 and continued to edge lower steadily throughout the year--suggests that the cost of funding these loans on the balance sheet declined relative to the cost of securitizing them (chart 9). Despite the relatively strong growth, consumer loans, as a share of total loans and leases, on banks' books fell to a new low of about 15 percent by the end of last year (chart 10). [Graphs omitted] For the first three quarters of 2000, commercial banks appeared to be willing suppliers of consumer credit, according to BLPS respondents. Negligible net fractions of banks reported tightening standards for the approval of consumer loan applications other than for credit cards, and the net percentage of institutions that increased spreads of loan rates over the cost of funds on these types of loans also remained small (chart 11). During the year's final quarter, however, lenders became more cautious, with larger net fractions of banks reporting that they had tightened standards and widened spreads. The final survey of the year also revealed that, on net, banks had tightened standards and widened spreads on credit card loans (chart 12). [Graphs omitted] Real estate loans for one- to four-family homes expanded 9.3 percent in 2000, down a touch from 1999. Most of the growth was in the first half, when the robust housing market appeared to be little affected by rising mortgage rates; during this period a substantial share of households turned to adjustable-rate mortgages (ARMs) (chart 13). Indeed, the share of mortgage lenders' originations that were attributable to ARMs remained near its recent peak of 30 percent throughout the first half. By the end of the fourth quarter, however, the higher level of ARM rates and of other shorter-term interest rates, combined with falling rates on fixed-rate mortgages, drove down the share of mortgage lenders' originations attributable to ARMs, to below 20 percent. Because ARM cash flows match those of banks' liabilities better than do those of fixed-rate mortgages, the shift away from ARMs likely contributed to increased securitization of household real estate loans later in the year; the share of such loans on bank balance sheets shrank 1.6 percent in the last quarter of 2000. [Graph omitted] Home equity loans jumped 24.6 percent in 2000, the largest increase since 1989 and a significant acceleration from the 5.9 percent growth in 1999. The pickup actually began in the final two quarters of 1999 and continued through the third quarter of 2000. Growth slowed appreciably in the fourth quarter, in part because of a pickup in home mortgage refinancing, spurred by the drop in the rate on fixed-rate mortgages (chart 14). In addition, households responded to declining equity prices and concerns about the future course of the economy by scaling back their purchases of consumer durable goods in the fourth quarter. The ratio of outstanding home equity loans to total commitments remained stable at about 40 percent in 2000. [Graph omitted] Other Loans and Leases Other loans and leases grew 8.3 percent in 2000, up 2 percentage points from the pace of the previous year. However, the lease component, which had been expanding at an average rate of about 25 percent since 1994, decelerated to 9.3 percent in 2000. The increase in lease financing since the mid-1990s has resulted largely from the rapid expansion of outlays on equipment that businesses typically lease, according to BLPS respondents. A shift of leasing activities from nonbank affiliates to banks also contributed to the growth of these assets at domestic banks. Banks reported that more than 60 percent of their leases have been made to non-financial corporations and that such leases have been an important source of growth in this component over the past several years. The slowdown in 2000, which was concentrated in the second half of the year, reflected a notable slackening in the growth of outlays on equipment that businesses typically lease. Most of the remaining leases held by banks are to consumers, primarily for automobiles. Loans to depository institutions jumped 22.4 percent in 2000, up substantially from the sluggish 2 percent growth in 1999. The surge was concentrated in loans made to depository institutions other than banks, although the growth of loans to banks--both in the United States and abroad--remained strong last year. In part, the growth of loans to depository institutions last year may have reflected a significant slowdown in advances from the Federal Home Loan Bank System, which had grown rapidly during the 1998-99 period. Securities Banks' holdings of securities in combined investment and trading accounts expanded 6.4 percent in 2000, up from 5.1 percent in 1999. The pickup was entirely in trading accounts, where holdings jumped 37.2 percent after having contracted in 1998 and 1999. Trading account assets surged, in domestic as well as in foreign trading operations. As a result, the share of assets held in trading accounts moved up in 2000, to 2.6 percent, after having fallen to the lowest level in eight years at the end of 1999. Probably because of the deteriorating environment for stocks, however, the acquisition of equity investments in trading accounts slowed greatly--these investments had been expanding rapidly in recent years but are still a tiny fraction of total assets. Securities held in investment accounts grew only 2.9 percent, down markedly from the 6.7 percent advance in 1999. Most of the slowdown was during the first half of the year, when, as noted, loan growth was strongest. In the second half, falling interest rates caused the value of investment account securities to rise because 87 percent of these assets were classified as available for sale and were therefore carried at market value. For the year as a whole, the difference between the market and book values of securities held in investment accounts rose from a loss of more than $18 billion to a loss of only $5.5 billion. Abstracting from the effect of this reevaluation, investment account securities grew only about 1.5 percent last year. The growth of securities in investment accounts was held down by the largest drop on record in bank holdings of U.S Treasury securities, 32.7 percent. The runoff was likely caused by soaring federal budget surpluses, which lower the supply of these securities, driving up their prices and thus reducing their yields in relation to other securities. Holdings of other securities in investment accounts grew 13.4 percent in 2000, down from the previous two years. This category, however, was boosted significantly in the second half of the year by ongoing shifts of funds by Merrill Lynch from cash management accounts held at its brokerages to money market deposit accounts at two affiliated banks. The two affiliates appear to have used the funds to acquire private securities and to expand their lending to other banking institutions. Liabilities After changing little in 1999, core deposits advanced 7.5 percent in 2000, the fastest rate of increase since 1990. As noted, the growth of core deposits during the second half of 2000 was boosted by Merrill Lynch's money fund shifts; abstracting from this special factor, core deposits grew 6.2 percent last year. In addition, a good portion of the increase in core deposits was in the final quarter of the year, when transaction deposits surged 31.9 percent (annual rate). The jump likely reflected declining market interest rates, falling and often volatile equity prices, and increased economic uncertainty, which apparently made liquid bank assets more attractive. Although bank funding needs picked up last year, the stronger flows into core deposits allowed banks to rely relatively less on managed liabilities. Managed liabilities grew 8.8 percent in 2000, down considerably from the 15.5 percent pace in 1999. Foreign deposits slowed markedly, with most of the deceleration coming in the second half of the year. The other-managed-liabilities category, which had been growing at a rapid pace over the past several years and accounts for about 18 percent of total liabilities, also slowed appreciably last year, to about 4 percent. Large time deposits, in contrast, expanded a hefty 19.4 percent in 2000, with a sharp acceleration during the final quarter. Capital Equity capital at banks rose 10.5 percent in 2000 after eking out an advance of less than 4 percent in 1999. The rebound was larger than that for assets, and as a result, the share of assets funded by equity capital moved up 13 basis points, to 8.5 percent. Commercial banks added slightly more than $17 billion to retained earnings in 2000, about $2 billion less than in 1999, as dividend payments were about unchanged even as net income slipped. They also added about $18 billion to paid-in capital, the other source of equity capital. Approximately half of the $18 billion was attributable to new capital, a large portion of which represented capital injections from parent holding companies. The remainder came primarily from the amount by which equity issued to fund mergers exceeded the value of the shares retired in those mergers. Equity capital was also boosted by a swing, on an end-of-period basis, from a $13 billion loss in net unrealized gains on available-for-sale securities in 1999 to a $1 billion gain last year. The percentage of assets held by well-capitalized banks inched up for the second consecutive year, to almost 98 percent (chart 15, top panel). However, the average margin by which domestic commercial banks remained well capitalized narrowed slightly after having finned a bit in 1999 (chart 15, bottom panel).(4) Tier 1 capital expanded 7.8 percent last year, a rate substantially below the increase in equity capital. As noted, the latter measure was boosted last year by unrealized gains on securities held in investment accounts; such gains and losses are excluded from regulatory capital. The ratio of tier 1 capital to risk-weighted assets edged down 8 basis points, to 9.4 percent, as risk-weighted assets expanded 8.7 percent, up markedly from 6 percent in 1999 (chart 16). A smaller drop in the ratio of total capital to risk-weighted assets--3 basis points, to just over 12 percent--reflected a 10.6 percent jump in tier 2 capital. The leverage ratio fell nearly 10 basis points, as the growth of average tangible assets more than doubled.(5) [Graph omitted] TRENDS IN PROFITABILITY Total net income of commercial banks declined 2 percent, to $69.8 billion, in 2000. After a strong first quarter, in which profits advanced 8.5 percent compared with the first quarter of 1999, profits fell below year-earlier levels for the rest of the year. In particular, profits dropped considerably in the second quarter, when First Union Bank and several banks in the Bank One holding company booked substantial restructuring charges. After having peaked in 1999, industrywide return on assets fell 13 basis points, to 1.18 percent (table 2). Return on equity fell 139 basis points, to 14.0 percent. A sharp increase in loan-loss provisioning, a slowdown in the growth of noninterest income, and an increase in the cost of funds that exceeded the rise in earning asset yields all contributed to the decline in profitability last year.
2. Selected income and expense items as a proportion of assets,
1992-2000
Item 1992 1993 1994 1995
Net interest income 3.89 3.90 3.78 3.72
Noninterest income 1.95 2.13 2.00 2.02
Noninterest expense 3.86 3.94 3.75 3.64
Loss provisioning .78 .47 .28 .30
Realized gains on
investment account securities .11 .09 -.01 .01
Income before taxes and
extraordinary items 1.32 1.70 1.73 1.81
Taxes and extraordinary items .41 .50 .58 .63
Net income (return on assets) .91 1.20 1.15 1.18
Dividends .41 .62 .73 .75
Retained income .49 .58 .42 .43
Item 1996 1997 1998 1999
Net interest income 3.73 3.67 3.52 3.52
Noninterest income 2.18 2.23 2.40 2.65
Noninterest expense 3.71 3.61 3.76 3.76
Loss provisioning .37 .41 .41 .39
Realized gains on
investment account securities .03 .04 .06 .00
Income before taxes and
extraordinary items 1.85 1.93 1.81 2.03
Taxes and extraordinary items .65 0.67 .61 .72
Net income (return on assets) 1.20 1.25 1.19 3.31
Dividends .90 .90 .80 .96
Retained income .30 .35 .39 .35
Item 2000
Net interest income 3.43
Noninterest income 2.57
Noninterest expense 3.65
Loss provisioning .49
Realized gains on
investment account securities -.04
Income before taxes and
extraordinary items 1.81
Taxes and extraordinary items .63
Net income (return on assets) 1.18
Dividends .89
Retained income .29
Despite reduced profitability, dividends remained fairly stable, growing about 1 percent. These payments, made primarily to parent holding companies, decreased only 7 basis points as a percentage of assets after having risen by 16 basis points in 1999. Partly as a result, retained income fell to 0.29 percent of assets, the lowest level in a decade. The number of banks that had negative net income declined to 605 in 2000 from 658 the previous year, reversing an upward trend that had begun in 1995. On the other hand, banks that lost money held 4.5 percent of industry assets last year, a sharp rise from 1.7 percent in 1999 and the largest share since 1992, when banks holding more than 11 percent of the industry's assets lost money. About half of last year's increase in assets of banks losing money was at several large commercial bank subsidiaries of a single large bank holding company. In 1999, the small-bank size group was the only one to show a decline in profitability; in 2000, this group was alone in posting profitability gains (chart 17). The difference between the two years reflects loss provisioning, which was concentrated at the larger banks last year. The largest 1,000 banks suffered from a 40 percent increase in loan-loss provisions, whereas the smaller banks increased provisioning only 10 percent. The ten largest banks also experienced a big increase in noninterest expense, more than 20 percent of which was the result of the aforementioned restructuring charges at First Union; at small banks this item declined. [Graph omitted] Despite some earnings pressure, bank holding company stocks rose in 2000, significantly outperforming the S&P 500, primarily because of gains registered during the second half of the year (chart 18). The Dow Jones bank index advanced 14 percent for the year, boosted substantially by the performance of some of the largest regional bank holding companies. By affecting investors' perceptions, falling market interest rates likely offset moderate declines in actual profitability and increasing concerns about asset quality. [Graph omitted] Interest Income and Expense Although market interest rates fell in the latter part of 2000, in many cases to below the levels prevailing as the year began, they were higher on average for the year than in 1999. Gross interest Gross interest Interest earned before taxes are deducted. income rose
46 basis points as a percentage of assets, but gross interest expense
increased more, 54 basis points. As a result, the industrywide net
interest margin--the ratio of net interest income to average
interest-earning assets--fell 11 basis points, to 3.93 percent (chart
19, top panel). After trending down throughout much of the past decade,
the net interest margin has returned to the levels observed in the late
1980s. The elevated level of the net interest margin in the early 1990s
reflected diminished competition for deposit funds and a desire to curb
asset growth through tight lending terms to improve capital positions.
In part, the subsequent decline reflects increased competition among
banks as well as the greater number of non-bank alternatives available
to both lenders and borrows since the early 1990s. However, somewhat
less than half of the decline in the net interest margin is estimated to
have come from a shift of banking system assets toward larger banks,
which tend to have narrower interest margins but higher returns in other
dimensions.[Graph omitted] The tightening of standards and terms on business loans as reported in the BLPS (and discussed above in the section on balance sheet developments) likely had offsetting effects on the net interest margin. On one hand, the reported widening of spreads of loan rates over the cost of funds clearly would act to widen margins. On the other hand, more stringent standards and reduced appetite for risk likely increased the share of lending to lower-risk, lower-return customers, a shift that would tend to narrow spreads. As noted above, the evidence from the STBL indicated that the average spread over the intended federal funds rate did not increase, on balance, in 2000. However, those spreads remained rather high, and the percentage of new loans that were made under commitment increased, while the share of higher-risk loan originations decreased. Call Report data reveal that for C&I loans held by banks in 2000, the difference between the average effective interest rate Effective Interest Rate The annual rate at which an investment grows in value when interest is credited more often than once a year. they
earned and the average quarterly federal funds rate declined somewhat.On the household side, 30 percent of banks, on net, reported in the May 2000 BLPS that over the past two years they had lowered the spread of mortgage loan rates over their cost of funds, and 20 percent, on net, indicated that they had reduced their fees on mortgage loan originations. According to Call Report data for all real estate loans held by banks, the spread of the average rate of return over the seven-year constant maturity Treasury rate declined about 14 basis points last year. Part of the decline likely reflected the rise from from 1999 to 2000 in the share of mortgages originated with adjustable rates. The average effective spread on consumer loans over the average quarterly prime rate also slipped in 2000. The industrywide decline in net interest margin masks important differences, however, across different bank sizes (chart 19, bottom panel). The decrease in net interest margin was concentrated at the largest 100 banks, where it fell 15 basis points, to 3.71 percent. In contrast, at banks outside the top 100, the net interest margin increased 2 basis points, to 4.45 percent. The divergent movements reflected the rising average cost of managed liabilities, which fund a significantly higher percentage of assets at large banks, relative to the average cost of core deposits. Furthermore, the average effective interest rate paid on large time deposits increased at large banks by more than it did at small banks, and the spreads (over comparable-maturity Treasury debt) on the subordinated debt issues of several large bank holding companies also rose. Perhaps contributing to the higher funding costs at large banks relative to small banks was the significantly larger increase in delinquency rates at large banks, which may have created the perception that they had become relatively more risky. Noninterest Income and Expense The ratio of noninterest income to total revenue slipped to 42.9 percent in 2000, the first decline in that ratio since 1994 (chart 20, top panel). "Other nonfee income"--which includes income from professional services, such as those provided for holding company affiliates; gains or losses on the sale of assets other than securities; and income from venture capital activities, including those at banks' small business investment subsidiaries--accounted for the entire decline (chart 20, middle panel). Losses reported by two large banks and several others on sales of assets that had been leased accounted for almost half of the decrease in this subcomponent. Most of the losses likely resulted from forecasts of auto lease residuals that were too optimistic. "Other nonfee income" also may have been depressed last year by declines in the market value of venture capital investments, especially in technology companies, over the final three quarters.(6) [Graph omitted] Trading income increased as a percentage of revenue for the second consecutive year. Revenue from trading in interest rate contracts increased 28 percent in 2000; revenue from foreign exchange contracts advanced about 6 percent after growing only 2 percent in 1999 (table 3). Most of the 50 percent rise in revenue from trading in equities and equity futures contracts was booked during the first and second quarters; by the fourth quarter, such revenue was more than one-third below its year-earlier level. Revenue from trading in contracts for commodity futures and options declined. Fiduciary income, primarily fees received for services rendered by bank trust departments, resumed its upward trend as a share of revenue after dipping in 1999.
3. Trading revenue at all U.S. banks, by type of exposure, 1995-2000
Millions of dollars
Year Total Interest rate
Millions of Percent Millions of Percent
dollars change dollars change
1995 6,337 1.4 3,012 n.a.
1996 7,523 18.7 4,112 36.5
1997 8,019 6.6 3,995 -2.9
1998 7,705 -3.9 2,500 -37.4
1999 10,478 36.0 3,840 53.6
2000 12,447 18.8 4,910 27.9
Year Foreign exchange Equity, security,
and index
Millions of Percent Millions of Percent
dollars change dollars change
1995 2,491 n.a. 519 n.a.
1996 2,689 8.0 391 -24.7
1997 3,951 46.9 49 -87.5
1998 4,714 19.3 452 822.5
1999 4,813 2.1 1,225 171.0
2000 5,090 5.8 1,934 57.9
Year Commodity and
other exposures
Millions of Percent
dollars change
1995 116 n.a.
1996 334 187.9
1997 23 -93.1
1998 39 69.6
1999 602 1,443.6
2000 514 -14.6
n.a. Not available.
Nondeposit fee income--which consists of fees earned on credit cards, mortgage servicing and refinancing, the sale and servicing of mutual funds and annuities, ATM surcharges, and securitized loans and securities lending--continued to increase as a share of total revenue (chart 20, bottom). Although no data are available on most of the individual elements of this income category, fees from the sale and servicing of mutual funds grew 11 percent in 2000. The gain also likely reflects, in part, the continued rise in securities lent by the trust departments of commercial banks (chart 21). Deposit fees also increased as a percentage of revenue after having declined fairly continuously throughout the 1990s; the turnaround perhaps reflected some results from banks' reported efforts to increase the profitability of transactions accounts. [Graph omitted] Relative to 1999, noninterest expense remained about unchanged as a percentage of total revenue, but abstracting from the substantial restructuring charges at First Union, the ratio declined significantly (chart 22, top panel). Continued consolidation presumably helped to sustain last year's extension of the decade-long decline in the cost of buildings and premises as a percentage of total revenue. But noninterest expense was also held in check by a marked decline in the growth rate of employee compensation, from 8 percent in 1999 to just over 3 percent in 2000 (chart 22, bottom panel). The decline in compensation reflected a slowing in the growth rate of the average salary and benefits per employee, from 5 percent in 1999 to less than 2 percent in 2000, and only a slight increase in the number of employees. The slow growth in the number of employees was partly attributable to small declines in employment last year at several large banks that had completed mergers in recent years. [Graph omitted] Loan Performance and Loss Provisioning The slowdown in economic growth during the second half of 2000 brought renewed attention to credit quality, especially in the business sector, where delinquency rates and net charge-off rates increased substantially. On the household side, delinquency rates also increased, on balance, last year. While delinquency rates on residential mortgages remained at a relatively low level, those on credit card and other consumer loans returned to the elevated levels reached in the mid-1990s. C&I Loans Delinquencies on C&I loans, which had begun to move up at large domestic banks in 1998, rose further in 2000 (chart 23, top left panel). The delinquency rate on business loans at small banks, which had been relatively stable over the past several years, also increased in 2000. Although the delinquency rates have risen from exceedingly low levels, about half of the banks participating in the November 2000 BLPS indicated that they had been surprised by the extent of deterioration in the credit quality of their C&I loan portfolio since the middle of 1998. During the first half of last year, respondents often noted problems related to specific industries, such as health care and companies exposed to asbestos-related litigation; but by year-end, problem loans reportedly were spread over a wider variety of industries. [Graph omitted] Net charge-off rates on C&I loans--which had begun increasing more than a year before delinquency rates--continued to move up in 2000, markedly so in the fourth quarter (chart 23, bottom left panel). In part, net charge-offs increased because recovery rates--defined as gross recoveries divided by total business loans--declined to decade-low levels in 2000. The sustained decline in the C&I recovery rate over the past several years probably arises from the relatively easier bank lending environment, particularly the less restrictive loan covenants and lower collateral requirements, that prevailed before the market turmoil in the second half of 1998. Despite the rise in charge-offs, the fraction of C&I loans that are classified as "nonaccrual" has also risen, reaching 1.52 percent in 2000; many non-accrual loans are later charged off. The ratio of net charge-offs to average delinquencies rose for the sixth consecutive year, to 34 percent, a level higher than it was during the recession of 1990-91. Commercial Real Estate Loans In contrast to C&I loans, commercial real estate loans continued to perform well, with delinquency rates remaining below 2 percent and net charge-off rates still almost negligible (chart 23, top and bottom left panels). These loans benefited from low vacancy rates for commercial office space and rising commercial rents even as economic growth slowed in the second half. Nevertheless, many of the largest banks in this sector apparently have not forgotten the heavy losses suffered in the commercial real estate market during the early 1990s. On net, about 40 percent of banks responding to the BLPS indicated that they had tightened standards on commercial real estate loans at some point in 2000. Also, in the January 2001 survey, 49 percent of domestic banks, on net, indicated that they had increased spreads of loan rates over their cost of funds during 2000, and 42 percent reported that they required higher debt-service-coverage ratios. Loans to Households A period of improving quality in consumer loans came to an end in the first quarter of 2000, with delinquency and net charge-off rates on credit card loans and consumer installment loans rising over the rest of the year (chart 23 top and bottom right panels). The delinquency rate on consumer installment loans rose 7 basis points in 2000, to 3.06 percent, although that on credit card loans edged up only 2 basis points, to 4.57 percent. The deterioration in consumers' servicing of their debt probably reflects the pressures brought to bear by the slowdown in economic activity as the year progressed and the continued rise in household debt-service payments as a fraction of disposable income, which reached its highest level in fifteen years (chart 24). In the January 2001 BLPS, 19 percent of banks, on net, reported a tightening of lending standards on all types of consumer loans, a significantly higher fraction than in previous surveys. [Graph omitted] The delinquency rate on residential mortgage loans crept up and then rose sharply in the fourth quarter. A fairly recent trend toward relatively easier lending conditions in this market may have added to the effect of a weakening economy and rising debt-service burdens. In the May 2000 BLPS, for example, almost half of the banks surveyed, on net, indicated that over the past two years they had increased the maximum size of their residential mortgage loans. Moreover, about one-fourth, on net, had eased their requirements for down payments, a change reflected in the fraction, albeit small, of mortgage loans extended with no down payment. The easier terms on residential real estate loans have negative implications for the average credit quality in this sector and for the recovery rate on foreclosed properties. Nevertheless, the net charge-off rate on residential mortgages remained very low in 2000, likely as a result of continued strength in existing home sales, which contributed to solid growth in median home prices. Loss Provisioning In response to higher delinquency and charge-off rates overall, commercial banks aggressively stepped up loan-loss provisioning in 2000 (chart 25, top panel). Almost 80 percent of the increase was attributable to the largest 100 banks, and among those, much of it was concentrated at the commercial bank subsidiaries of a few large bank holding companies. Nevertheless, because of the increase in net charge-offs, the sharp rise in loss provisioning resulted in only an 8 percent increase in loan-loss reserves--less than the advance in total loans and leases. As a result, the ratio of loan-loss reserves to total loans and leases fell 7 basis points, to 1.66 percent, the lowest level since 1986. [Graph omitted] Other measures of the adequacy of loan-loss reserves also fell but remained at fairly high levels relative to historical norms (chart 25, bottom panel). The ratio of loan-loss reserves to delinquent loans dropped 10 percentage points, to 70 percent, still just below the elevated range of the past several years and above its level of the late 1980s and early 1990s. Similarly, the ratio of loan-loss reserves to net charge-offs declined significantly last year but remained above its level of the late 1980s and early 1990s. INTERNATIONAL OPERATIONS OF U.S. COMMERCIAL BANKS The share of assets at domestically chartered banks that were booked at foreign offices fell for the third consecutive year in 2000, reaching 12.3 percent. The decline reflected strong U.S. economic growth and the associated rise in lending to U.S. entities over the first half of 2000. Nevertheless, rising income from foreign operations during the first two quarters of the year boosted the share of income attributable to such operations to 10.3 percent, up from 9.9 percent in 1999. The increase in income reflected a rise in interest income, which rebounded notably after slipping in 1999, and--in contrast to domestic operations--a notable reduction in loan-loss provisioning. Reports from ninety-nine banks for year-end 2000 show that the ten largest of them increased their exposure to Eastern Europe and, by a lesser amount, to Latin America, as a proportion of tier 1 capital, while further paring back their exposure to certain Asian economies (table 4). The rise in exposure to Brazil accounted for almost half of the rise in the large banks' exposure to Latin America, which nonetheless remained below its level of two years ago. The other reporting banks cut back their exposure to all these economies, to below 10 percent of tier 1 capital. For all reporting banks, exposures to all these economies fell slightly, to 55.4 percent of tier 1 capital.
4. Exposures of selected U.S. bankings, organizations to selected
economies at year-end, relative to tier 1 capital, 1998-2000
Percent except as noted
Region or country All reporting Large
1998 1999 2000 1998 1999 2000
Selected Asian
countries(1) 15.49 14.37 13.17 24.02 20.73 19.98
Eastern Europe
All 3.49 2.85 4.35 5.61 4.25 6.83
Russia .43 .37 .49 .68 .55 .77
Latin America
All 42.93 39.00 37.88 64.20 53.90 54.98
Brazil 11.27 10.49 11.15 17.04 14.53 16.40
Total 61.90 56.22 55.40 93.83 78.88 81.79
MEMO:
Total exposure,
Region or county Other all reporting banks
(billion of dollars)
1998 1999 2000 1998 1999 2000
Selected Asian
countries(1) 2.08 1.75 1.41 37.87 37.45 37.30
Eastern Europe
All .16 .08 .08 8.53 7.43 12.33
Russia .00 .01 .00 1.05 .95 1.39
Latin America
All 9.51 9.41 8.35 104.96 101.63 107.31
Brazil .00 2.47 2.08 27.55 27.34 31.59
Total 11.75 11.24 9.84 151.36 146.51 156.94
NOTE. For definition of tier 1 capital, see text note 5. Exposures
consist of lending and derivatives exposures for cross-border and
local-office operations. Respondents may file information on one
bank or on the bank holding company as a whole.
At year-end 2000, "all reporting" banks consisted of 99 institutions
with a total of $283 billion in tier 1 capital; of these institutions,
10 were "large" banks (5 money center banks and 5 other large banks)
($179 billion in tier 1 capital), and the remaining 89 were "other"
banks ($104 billion). The average "other" bank at year-end 2000 had
$16 billion in assets.
(1.) Indonesia, Korea, Malaysia, Philippines, and Thailand.
SOURCE. Federal Financial Institutions Examination Council Statistical
Release E. 16, "Country Exposure Survey," available at
www.ffiec.gov/E16.htm/
RECENT DEVELOPMENTS Over the first three months of 2001, the Federal Reserve lowered the federal funds rate 150 basis points in three 50-point steps, to 5 percent, and almost completely reversed the tightening that had begun in the second half of 1999. Despite the change in the stance of monetary policy, responses to a supplementary survey of bank lending practices in March 2001 indicated that banks, on net, continued to tighten standards and strengthen terms on commercial and industrial loans during the first two months of 2001. The equity prices of bank holding companies declined moderately, on balance, over the first quarter of 2001, although bank share prices continued to perform better than the S&P 500. The net income of a sample of twenty-five large bank holding companies declined more than 10 percent in the first quarter of 2001 relative to the same quarter last year. Profitability was restrained significantly by continued increases in loan-loss provisioning arising from ongoing deterioration in credit quality; according to several banks, the deterioration remains concentrated in commercial loan portfolios. The decline in net income also reflected reduced revenues from capital market activities, particularly at banking organizations that have substantial venture capital operations.
A.1. Report of income, all U.S. banks, 1991-2000
Millions of dollars
Item 1991 1992 1993
Gross interest income 290,692 256,415 244,742
Taxable equivalent 293,879 259,394 247,620
Loans 215,019 185,938 178,425
Securities 52,769 51,825 48,678
Gross federal funds sold and reverse
repurchase agreements 9,149 5,913 4,796
Other 13,757 12,739 12,843
Gross interest expense 168,492 122,517 105,615
Deposits 139,431 98,809 79,503
Gross federal funds purchased and
repurchase agreements 14,439 9,263 8,442
Other 14,623 14,441 17,669
Net interest income 122,200 133,898 139,127
Taxable equivalent 125,387 136,877 142,005
Loss provisioning(1) 34,871 26,813 16,841
Noninterest income 61,124 67,044 75,847
Service charges on deposits 12,884 14,126 14,898
Income from fiduciary activities 9,499 10,452 11,199
Trading income 5,954 6,273 9,238
Other 32,785 36,193 40,513
Noninterest expense 126,665 132,815 140,523
Salaries, wages, and
employee benefits 53,810 55,484 58,507
Expenses of premises
and fixed assets 17,984 18,152 18,578
Other 54,871 59,181 63,439
Net noninterest expense 65,541 65,771 64,676
Realized gains on investment account
securities 2,897 3,957 3,054
Income before taxes and extraordinary
items 24,684 45,273 60,662
Taxes 8,292 14,450 19,861
Extraordinary items 1,198 401 2,085
Net income 17,590 31,224 42,886
Cash dividends declared 15,562 14,226 22,068
Retained income 2,028 16,997 20,816
Item 1994 1995 1996
Gross interest income 257,065 302,376 313,120
Taxable equivalent 259,822 305,010 315,579
Loans 189,764 227,218 239,310
Securities 48,299 51,030 50,603
Gross federal funds sold and reverse
repurchase agreements 6,415 9,744 9,265
Other 12,587 14,382 13,944
Gross interest expense 110,850 147,958 150,047
Deposits 79,106 105,329 107,467
Gross federal funds purchased and
repurchase agreements 12,476 18,424 16,775
Other 19,269 24,204 25,806
Net interest income 146,215 154,418 163,073
Taxable equivalent 148,972 157,052 165,532
Loss provisioning(1) 10,991 12,631 16,206
Noninterest income 77,224 83,851 95,278
Service charges on deposits 15,281 16,057 17,043
Income from fiduciary activities 12,124 12,890 14,288
Trading income 6,249 6,337 7,523
Other 43,572 48,567 56,424
Noninterest expense 144,905 151,137 162,401
Salaries, wages, and
employee benefits 60,904 64,013 67,776
Expenses of premises
and fixed assets 18,978 19,760 20,883
Other 65,023 67,363 73,742
Net noninterest expense 67,681 67,286 67,123
Realized gains on investment account
securities -568 481 1,123
Income before taxes and extraordinary
items 66,974 74,980 80,866
Taxes 22,429 26,222 28,431
Extraordinary items -17 28 88
Net income 44,528 48,785 52,522
Cash dividends declared 28,165 31,105 39,391
Retained income 16,362 17,681 13,132
Item 1997 1998 1999
Gross interest income 338,225 359,184 366,182
Taxable equivalent 340,660 361,648 368,809
Loans 255,499 270,952 278,604
Securities 52,662 56,596 62,095
Gross federal funds sold and reverse
repurchase agreements 13,658 14,999 12,327
Other 16,407 16,635 13,155
Gross interest expense 164,516 177,999 174,870
Deposits 117,351 125,217 119,640
Gross federal funds purchased and
repurchase agreements 20,440 22,182 21,129
Other 26,724 30,599 34,101
Net interest income 173,709 181,185 191,312
Taxable equivalent 176,144 183,649 193,939
Loss provisioning(1) 19,173 21,224 21,120
Noninterest income 105,776 123,490 144,131
Service charges on deposits 18,558 19,770 21,495
Income from fiduciary activities 16,604 19,271 20,501
Trading income 8,019 7,705 10,478
Other 62,597 76,745 91,656
Noninterest expense 170,996 193,681 204,365
Salaries, wages, and
employee benefits 72,347 79,508 86,139
Expenses of premises
and fixed assets 22,082 24,160 25,859
Other 76,568 90,013 92,367
Net noninterest expense 65,220 70,191 60,234
Realized gains on investment account
securities 1,826 3,087 251
Income before taxes and extraordinary
items 91,141 92,856 110,208
Taxes 31,987 31,902 39,262
Extraordinary items 56 506 169
Net income 59,209 61,460 71,114
Cash dividends declared 42,726 41,206 51,957
Retained income 16,483 20,253 19,159
Item 2000
Gross interest income 424,299
Taxable equivalent 426,937
Loans 327,277
Securities 67,665
Gross federal funds sold and reverse
repurchase agreements 13,530
Other 15,829
Gross interest expense 222,011
Deposits 151,159
Gross federal funds purchased and
repurchase agreements 26,847
Other 44,004
Net interest income 202,288
Taxable equivalent 204,926
Loss provisioning(1) 29,038
Noninterest income 151,715
Service charges on deposits 23,717
Income from fiduciary activities 22,213
Trading income 12,447
Other 93,340
Noninterest expense 215,514
Salaries, wages, and
employee benefits 89,005
Expenses of premises
and fixed assets 26,763
Other 99,744
Net noninterest expense 63,799
Realized gains on investment account
securities -2,298
Income before taxes and extraordinary
items 107,155
Taxes 37,448
Extraordinary items -32
Net income 69,675
Cash dividends declared 52,517
Retained income 17,157
(1.) Includes provisions for loan and lease losses and for
allocated transfer risk.
A.2. Portfolio composition, interest rates, and income and expense,
all U.S. banks. 1991-2000
A. All banks
Item 1991 1992
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 88.04 88.33
Loans and leases, net 59.55 57.30
Commercial and industrial 17.33 15.78
U.S. addressees 15.00 13.54
Foreign addressees 82.33 2.24
Consumer 11.45 11.00
Credit card 3.88 3.80
Installment and other 7.57 7.20
Real estate 24.87 24.87
In domestic offices 24.11 24.18
Construction and land development 3.41 2.64
Farmland .53 .56
One- to four-family residential 12.27 12.91
Home equity 1.95 2.09
Other 10.32 10.83
Multifamily residential .66 .75
Nonfarm nonresidential 7.23 7.32
In foreign offices .76 .69
Depository institutions 1.42 1.24
Foreign governments .75 .73
Agricultural production 1.01 1.02
Other loans 3.60 3.50
Lease-financing receivables 1.09 1.03
LESS: Unearned income on loans -.36 -.28
Less: Loss reserves(1) -1.62 -1.60
Securities 20.70 23.52
Investment account 18.93 21.18
Debt 18.62 20.82
U.S. Treasury 5.06 6.49
U.S. government agency and
corporation obligations 8.75 9.86
Government-backed mortgage pools 4.51 4.52
Collateralized mortgage obligations 2.07 3.12
Other 2.16 2.21
State and local government 2.28 2.08
Private mortgage-backed securities .94 .82
Other 1.59 1.58
Equity .31 .37
Trading account 1.77 2.34
Gross federal funds sold and reverse RPs 4.58 4.54
Interest-bearing balances at depositories 3.21 2.97
Non-interest-earning assets 11.96 11.67
Revaluation gains on off-balance-sheet items(2) n.a. n.a.
Other 11.96 11.67
Liabilities 93.33 92.82
Interest-bearing liabilities 76.58 75.32
Deposits 64.45 62.94
In foreign offices 8.55 8.37
In domestic offices 55.90 54.56
Other checkable deposits 6.72 7.65
Savings (including MMDAs) 18.00 20.28
Small-denomination time deposits 21.30 19.21
Large-denomination time deposits 9.89 7.42
Gross federal funds purchased and RPs 7.09 7.02
Other 5.03 5.36
Non-interest-bearing liabilities 16.75 17.50
Demand deposits in domestic offices 12.59 13.24
Revaluation losses on off-balance-sheet items(2) n.a. n.a.
Other 4.16 4.27
Capital account 6.67 7.18
MEMO
Commercial real estate loans 12.02 11.34
Other real estate owned .75 .82
Managed liabilities 31.05 28.70
Average net consolidated assets
(billions of dollars) 3,379 3,442
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 9.57 8.27
Taxable equivalent 9.69 8.37
Loans and leases, gross 10.40 9.20
Net of loss provisions 8.72 7.87
Securities 8.19 7.04
Taxable equivalent 8.56 7.34
Investment account 8.25 7.11
U.S. government and other debt 8.43 7.18
State and local 7.25 6.81
Equity 6.20 5.32
Trading account 7.54 6.40
Gross federal funds sold and reverse RPs 5.69 3.58
Interest-bearing balances at depositories 8.44 7.31
Rates paid
Interest-bearing liabilities 6.55 4.75
Interest-bearing deposits 6.34 4.51
In foreign offices 8.54 7.32
In domestic offices 6.00 4.07
Other checkable deposits 4.34 2.70
Savings (including MMDAs) 5.11 3.25
Large-denomination time deposits(4) 6.69 4.90
Small-denomination time deposits(4) 6.93 5.15
Gross federal funds purchased and RPs 5.76 3.64
Other interest-bearing liabilities 8.65 7.87
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 8.60 7.45
Taxable equivalent 8.70 7.54
Loans 6.36 5.40
Securities 1.56 1.51
Gross federal funds sold and reverse RPs .27 .17
Other .41 .37
Gross interest expense 4.99 3.56
Deposits 4.13 2.87
Gross federal funds purchased and RPs .43 .27
Other .43 .42
Net interest income 3.62 3.89
Taxable equivalent 3.71 3.98
Loss provisioning(5) 1.03 .78
Noninterest income 1.81 1.95
Service charges on deposits .38 .41
Income from fiduciary activities .28 .30
Trading income .18 .18
Interest rate exposures n.a. n.a.
Foreign exchange exposures n.a. n.a.
Equity, commodity, and other exposures n.a. n.a.
Other .97 1.05
Noninterest expense 3.75 3.86
Salaries, wages, and employee benefits 1.59 1.61
Expenses of premises and fixed assets .53 .53
Other 1.62 1.72
Net noninterest expense 1.94 1.91
Realized gains on investment account securities .09 .11
Income before taxes and extraordinary items .73 1.32
Taxes .25 .42
Extraordinary items .04 .01
Net income (return on assets) .52 .91
Cash dividends declared .46 .41
Retained income .06 .49
MEMO: Return on equity 7.80 12.64
Item 1993 1994
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 88.50 86.60
Loans and leases, net 56.25 56.07
Commercial and industrial 14.88 14.51
U.S. addressees 12.72 12.35
Foreign addressees 2.16 2.16
Consumer 11.00 11.43
Credit card 3.88 4.21
Installment and other 7.11 7.22
Real estate 24.80 24.43
In domestic offices 24.18 23.80
Construction and land development 1.99 1.65
Farmland .57 .56
One- to four-family residential 13.49 13.74
Home equity 2.07 1.91
Other 11.42 11.84
Multifamily residential .79 .79
Nonfarm nonresidential 7.33 7.07
In foreign offices .62 .63
Depository institutions 1.08 1.42
Foreign governments .67 .41
Agricultural production .99 1.00
Other loans 3.56 3.34
Lease-financing receivables .99 1.03
LESS: Unearned income on loans -.21 -.16
Less: Loss reserves(1) -1.51 -1.36
Securities 25.37 24.32
Investment account 22.50 21.60
Debt 22.12 21.21
U.S. Treasury 7.08 6.77
U.S. government agency and
corporation obligations 10.73 10.24
Government-backed mortgage pools 4.74 4.67
Collateralized mortgage obligations 3.72 3.24
Other 2.27 2.33
State and local government 2.06 2.02
Private mortgage-backed securities .73 .64
Other 1.52 1.54
Equity .38 .39
Trading account 2.87 2.71
Gross federal funds sold and reverse RPs 4.27 3.82
Interest-bearing balances at depositories 2.62 2.40
Non-interest-earning assets 11.50 13.40
Revaluation gains on off-balance-sheet items(2) n.a. 2.95
Other 11.50 10.45
Liabilities 92.15 92.12
Interest-bearing liabilities 73.92 71.86
Deposits 60.26 57.34
In foreign offices 8.32 9.39
In domestic offices 51.94 47.96
Other checkable deposits 8.24 7.80
Savings (including MMDAs) 20.91 19.60
Small-denomination time deposits 16.98 15.33
Large-denomination time deposits 5.81 5.23
Gross federal funds purchased and RPs 7.47 7.60
Other 6.19 6.92
Non-interest-bearing liabilities 18.23 20.26
Demand deposits in domestic offices 13.86 13.49
Revaluation losses on off-balance-sheet items(2) n.a. 2.69
Other 4.37 4.55
Capital account 7.85 7.88
MEMO
Commercial real estate loans 10.63 9.94
Other real estate owned .63 .36
Managed liabilities 28.28 29.61
Average net consolidated assets
(billions of dollars) 3,566 3,863
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 7.61 7.61
Taxable equivalent 7.71 7.70
Loans and leases, gross 8.69 8.62
Net of loss provisions 7.87 8.12
Securities 6.08 5.96
Taxable equivalent 6.36 6.20
Investment account 6.07 5.79
U.S. government and other debt 6.07 5.80
State and local 6.25 5.87
Equity 4.79 4.79
Trading account 6.16 7.41
Gross federal funds sold and reverse RPs 3.04 4.26
Interest-bearing balances at depositories 6.61 5.71
Rates paid
Interest-bearing liabilities 4.01 4.01
Interest-bearing deposits 3.65 3.53
In foreign offices 6.82 5.59
In domestic offices 3.14 3.14
Other checkable deposits 1.99 1.85
Savings (including MMDAs) 2.50 2.58
Large-denomination time deposits(4) 4.00 4.09
Small-denomination time deposits(4) 4.19 4.17
Gross federal funds purchased and RPs 3.07 4.18
Other interest-bearing liabilities 8.02 7.25
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 6.86 6.65
Taxable equivalent 6.94 6.73
Loans 5.00 4.91
Securities 1.37 1.25
Gross federal funds sold and reverse RPs .13 .17
Other .36 .33
Gross interest expense 2.96 2.87
Deposits 2.23 2.05
Gross federal funds purchased and RPs .24 .32
Other .50 .50
Net interest income 3.90 3.78
Taxable equivalent 3.98 3.86
Loss provisioning(5) .47 .28
Noninterest income 2.13 2.00
Service charges on deposits .42 .40
Income from fiduciary activities .31 .31
Trading income .26 .16
Interest rate exposures n.a. n.a.
Foreign exchange exposures n.a. n.a.
Equity, commodity, and other exposures n.a. n.a.
Other 1.14 1.13
Noninterest expense 3.94 3.75
Salaries, wages, and employee benefits 1.64 1.58
Expenses of premises and fixed assets .52 .49
Other 1.78 1.68
Net noninterest expense 1.81 1.75
Realized gains on investment account securities .09 -.01
Income before taxes and extraordinary items 1.70 1.73
Taxes .56 .58
Extraordinary items .06 (*)
Net income (return on assets) 1.20 1.15
Cash dividends declared .62 .73
Retained income .58 .42
MEMO: Return on equity 15.32 14.63
Item 1995 1996
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 86.47 86.80
Loans and leases, net 58.37 59.89
Commercial and industrial 15.20 15.60
U.S. addressees 12.87 13.07
Foreign addressees 2.33 2.53
Consumer 12.08 12.21
Credit card 4.69 4.87
Installment and other 7.39 7.34
Real estate 25.01 25.06
In domestic offices 24.36 24.43
Construction and land development 1.59 1.63
Farmland .56 .56
One- to four-family residential 14.42 14.43
Home equity 1.88 1.85
Other 12.54 12.57
Multifamily residential .81 .85
Nonfarm nonresidential 6.97 6.96
In foreign offices .65 .63
Depository institutions 1.88 2.29
Foreign governments .30 .26
Agricultural production .96 .92
Other loans 3.15 3.36
Lease-financing receivables 1.19 1.51
LESS: Unearned income on loans -.14 -.12
Less: Loss reserves(1) -1.26 -1.21
Securities 21.94 21.01
Investment account 19.39 18.20
Debt 18.98 17.75
U.S. Treasury 5.25 4.20
U.S. government agency and
corporation obligations 9.81 9.75
Government-backed mortgage pools 4.47 4.80
Collateralized mortgage obligations 2.67 2.11
Other 2.68 2.83
State and local government 1.80 1.68
Private mortgage-backed securities .62 .61
Other 1.49 1.51
Equity .41 .45
Trading account 2.55 2.81
Gross federal funds sold and reverse RPs 3.93 3.82
Interest-bearing balances at depositories 2.23 2.08
Non-interest-earning assets 13.53 13.20
Revaluation gains on off-balance-sheet items(2) 2.90 2.25
Other 10.62 10.95
Liabilities 91.99 91.73
Interest-bearing liabilities 71.86 71.62
Deposits 56.30 55.87
In foreign offices 10.28 10.01
In domestic offices 46.03 45.86
Other checkable deposits 6.63 4.75
Savings (including MMDAs) 17.48 18.71
Small-denomination time deposits 16.14 15.97
Large-denomination time deposits 5.77 6.42
Gross federal funds purchased and RPs 7.71 7.18
Other 7.85 8.56
Non-interest-bearing liabilities 20.13 20.11
Demand deposits in domestic offices 12.68 12.82
Revaluation losses on off-balance-sheet items(2) 2.88 2.14
Other 4.57 5.14
Capital account 8.01 8.27
MEMO
Commercial real estate loans 9.83 9.92
Other real estate owned .19 .14
Managed liabilities 32.08 32.73
Average net consolidated assets
(billions of dollars) 4,148 4,376
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 8.33 8.14
Taxable equivalent 8.41 8.21
Loans and leases, gross 9.25 8.99
Net of loss provisions 8.74 8.39
Securities 6.51 6.42
Taxable equivalent 6.73 6.66
Investment account 6.35 6.35
U.S. government and other debt 6.42 6.47
State and local 5.82 5.55
Equity 5.51 5.23
Trading account 7.73 6.86
Gross federal funds sold and reverse RPs 5.63 5.21
Interest-bearing balances at depositories 6.84 6.21
Rates paid
Interest-bearing liabilities 4.99 4.82
Interest-bearing deposits 4.47 4.33
In foreign offices 6.12 5.54
In domestic offices 4.11 4.07
Other checkable deposits 2.06 2.04
Savings (including MMDAs) 3.19 2.99
Large-denomination time deposits(4) 5.47 5.39
Small-denomination time deposits(4) 5.44 5.40
Gross federal funds purchased and RPs 5.65 5.12
Other interest-bearing liabilities 7.47 6.93
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 7.29 7.16
Taxable equivalent 7.35 7.21
Loans 5.48 5.47
Securities 1.23 1.16
Gross federal funds sold and reverse RPs .23 .21
Other .35 .32
Gross interest expense 3.57 3.43
Deposits 2.54 2.46
Gross federal funds purchased and RPs .44 .38
Other .58 .59
Net interest income 3.72 3.73
Taxable equivalent 3.79 3.78
Loss provisioning(5) .30 .37
Noninterest income 2.02 2.18
Service charges on deposits .39 .39
Income from fiduciary activities .31 .33
Trading income .15 .17
Interest rate exposures n.a. .09
Foreign exchange exposures n.a. .06
Equity, commodity, and other exposures n.a. .02
Other 1.17 1.29
Noninterest expense 3.64 3.71
Salaries, wages, and employee benefits 1.54 1.55
Expenses of premises and fixed assets .48 .48
Other 1.62 1.69
Net noninterest expense 1.62 1.53
Realized gains on investment account securities .01 .03
Income before taxes and extraordinary items 1.81 1.85
Taxes .63 .65
Extraordinary items (*) (*)
Net income (return on assets) 1.18 1.20
Cash dividends declared .75 .90
Retained income .43 .30
MEMO: Return on equity 14.69 14.52
Item 1997 1998
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 86.58 86.26
Loans and leases, net 58.69 58.33
Commercial and industrial 15.78 16.37
U.S. addressees 13.18 13.62
Foreign addressees 2.60 2.75
Consumer 11.44 10.36
Credit card 4.55 3.96
Installment and other 6.89 6.39
Real estate 25.02 24.87
In domestic offices 24.41 24.30
Construction and land development 1.73 1.86
Farmland .55 .55
One- to four-family residential 14.42 14.26
Home equity 1.94 1.89
Other 12.48 12.37
Multifamily residential .83 .82
Nonfarm nonresidential 6.88 6.81
In foreign offices .61 .57
Depository institutions 1.89 1.88
Foreign governments .18 .15
Agricultural production .90 .89
Other loans 2.84 2.81
Lease-financing receivables 1.87 2.14
LESS: Unearned income on loans -.09 -.07
Less: Loss reserves(1) -1.13 -1.07
Securities 20.41 20.38
Investment account 17.25 17.49
Debt 16.75 16.94
U.S. Treasury 3.38 2.71
U.S. government agency and
corporation obligations 9.74 10.28
Government-backed mortgage pools 4.94 5.17
Collateralized mortgage obligations 1.94 2.13
Other 2.86 2.99
State and local government 1.59 1.57
Private mortgage-backed securities .50 .67
Other 1.54 1.71
Equity .50 .55
Trading account 3.16 2.90
Gross federal funds sold and reverse RPs 5.18 5.37
Interest-bearing balances at depositories 2.29 2.17
Non-interest-earning assets 13.42 13.74
Revaluation gains on off-balance-sheet items(2) 2.59 2.95
Other 10.83 10.79
Liabilities 91.57 91.51
Interest-bearing liabilities 71.36 71.33
Deposits 55.01 54.66
In foreign offices 10.02 10.15
In domestic offices 44.99 44.51
Other checkable deposits 3.62 3.11
Savings (including MMDAs) 19.13 19.91
Small-denomination time deposits 15.17 14.15
Large-denomination time deposits 7.08 7.33
Gross federal funds purchased and RPs 8.13 7.99
Other 8.21 8.68
Non-interest-bearing liabilities 20.21 20.18
Demand deposits in domestic offices 12.16 11.00
Revaluation losses on off-balance-sheet items(2) 2.64 2.97
Other 5.41 6.21
Capital account 8.43 8.49
MEMO
Commercial real estate loans 9.99 10.12
Other real estate owned .11 .08
Managed liabilities 34.09 34.94
Average net consolidated assets
(billions of dollars) 4,733 5,144
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 8.15 7.99
Taxable equivalent 8.22 8.06
Loans and leases, gross 9.01 8.85
Net of loss provisions 8.34 8.15
Securities 6.50 6.37
Taxable equivalent 6.73 6.63
Investment account 6.45 6.29
U.S. government and other debt 6.60 6.45
State and local 5.41 5.23
Equity 5.15 4.92
Trading account 6.75 6.85
Gross federal funds sold and reverse RPs 5.45 5.29
Interest-bearing balances at depositories 6.24 6.32
Rates paid
Interest-bearing liabilities 4.92 4.88
Interest-bearing deposits 4.39 4.31
In foreign offices 5.44 5.66
In domestic offices 4.16 4.01
Other checkable deposits 2.25 2.29
Savings (including MMDAs) 2.93 2.79
Large-denomination time deposits(4) 5.45 5.22
Small-denomination time deposits(4) 5.54 5.48
Gross federal funds purchased and RPs 5.17 5.19
Other interest-bearing liabilities 6.95 6.89
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 7.15 6.98
Taxable equivalent 7.20 7.03
Loans 5.40 5.27
Securities 1.11 1.10
Gross federal funds sold and reverse RPs .29 .29
Other .35 .32
Gross interest expense 3.48 3.46
Deposits 2.48 2.43
Gross federal funds purchased and RPs .43 .43
Other .56 .59
Net interest income 3.67 3.52
Taxable equivalent 3.72 3.57
Loss provisioning(5) .41 .41
Noninterest income 2.23 2.40
Service charges on deposits .39 .38
Income from fiduciary activities .35 .37
Trading income .17 .15
Interest rate exposures .08 .05
Foreign exchange exposures .08 .09
Equity, commodity, and other exposures (*) .01
Other 1.32 1.49
Noninterest expense 3.61 3.76
Salaries, wages, and employee benefits 1.53 1.55
Expenses of premises and fixed assets .47 .47
Other 1.62 1.75
Net noninterest expense 1.38 1.36
Realized gains on investment account securities .04 .06
Income before taxes and extraordinary items 1.93 1.81
Taxes .68 .62
Extraordinary items (*) .01
Net income (return on assets) 1.25 1.19
Cash dividends declared .90 .80
Retained income .35 .39
MEMO: Return on equity 14.84 14.07
Item 1999 2000
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 86.54 86.66
Loans and leases, net 59.36 60.51
Commercial and industrial 17.09 17.20
U.S. addressees 14.43 14.67
Foreign addressees 2.66 2.53
Consumer 9.71 9.39
Credit card 3.51 3.52
Installment and other 6.20 5.88
Real estate 25.44 27.04
In domestic offices 24.87 26.49
Construction and land development 2.18 2.51
Farmland .56 .56
One- to four-family residential 14.10 14.95
Home equity 1.76 1.96
Other 12.34 13.00
Multifamily residential .88 .99
Nonfarm nonresidential 7.15 7.48
In foreign offices .57 .54
Depository institutions 1.94 1.85
Foreign governments .16 .12
Agricultural production .83 .78
Other loans 2.76 2.56
Lease-financing receivables 2.53 2.65
LESS: Unearned income on loans -.06 -.05
Less: Loss reserves(1) -1.04 -1.02
Securities 20.40 20.02
Investment account 18.33 17.59
Debt 17.73 16.93
U.S. Treasury 2.14 1.66
U.S. government agency and
corporation obligations 10.85 10.31
Government-backed mortgage pools 5.24 4.75
Collateralized mortgage obligations 2.15 1.92
Other 3.46 3.63
State and local government 1.62 1.52
Private mortgage-backed securities .88 .95
Other 2.24 2.48
Equity .61 .66
Trading account 2.06 2.43
Gross federal funds sold and reverse RPs 4.61 4.12
Interest-bearing balances at depositories 2.17 2.01
Non-interest-earning assets 13.46 13.34
Revaluation gains on off-balance-sheet items(2) 2.57 2.29
Other 10.89 11.05
Liabilities 91.51 91.58
Interest-bearing liabilities 72.51 73.28
Deposits 54.79 54.66
In foreign offices 10.46 10.90
In domestic offices 44.33 43.75
Other checkable deposits 2.81 2.46
Savings (including MMDAs) 21.00 20.64
Small-denomination time deposits 13.10 12.49
Large-denomination time deposits 7.42 8.16
Gross federal funds purchased and RPs 7.97 7.84
Other 9.75 10.79
Non-interest-bearing liabilities 19.00 18.30
Demand deposits in domestic offices 9.78 8.62
Revaluation losses on off-balance-sheet items(2) 2.52 2.29
Other 6.70 7.39
Capital account 8.49 8.42
MEMO
Commercial real estate loans 10.87 11.58
Other real estate owned .06 .05
Managed liabilities 36.58 38.82
Average net consolidated assets
(billions of dollars) 5,438 5,904
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 7.70 8.23
Taxable equivalent 7.77 8.26
Loans and leases, gross 8.48 9.01
Net of loss provisions 7.83 8.21
Securities 6.25 6.53
Taxable equivalent 6.45 6.65
Investment account 6.23 6.52
U.S. government and other debt 6.39 6.71
State and local 5.11 5.21
Equity 4.85 4.99
Trading account 6.47 6.63
Gross federal funds sold and reverse RPs 4.78 5.56
Interest-bearing balances at depositories 5.95 6.48
Rates paid
Interest-bearing liabilities 4.47 5.17
Interest-bearing deposits 3.87 4.45
In foreign offices 4.91 5.61
In domestic offices 3.63 4.18
Other checkable deposits 2.08 2.34
Savings (including MMDAs) 2.49 2.86
Large-denomination time deposits(4) 4.92 5.79
Small-denomination time deposits(4) 5.09 5.68
Gross federal funds purchased and RPs 4.73 5.76
Other interest-bearing liabilities 6.48 6.96
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 6.73 7.19
Taxable equivalent 6.78 7.23
Loans 5.12 5.54
Securities 1.14 1.15
Gross federal funds sold and reverse RPs .23 .23
Other .24 .27
Gross interest expense 3.22 3.76
Deposits 2.20 2.56
Gross federal funds purchased and RPs .39 .45
Other .63 .75
Net interest income 3.52 3.43
Taxable equivalent 3.57 3.47
Loss provisioning(5) .39 .49
Noninterest income 2.65 2.57
Service charges on deposits .40 .40
Income from fiduciary activities .38 .38
Trading income .19 .21
Interest rate exposures .07 .08
Foreign exchange exposures .09 .09
Equity, commodity, and other exposures .03 .04
Other 1.69 1.58
Noninterest expense 3.76 3.65
Salaries, wages, and employee benefits 1.58 1.51
Expenses of premises and fixed assets .48 .45
Other 1.70 1.69
Net noninterest expense 1.11 1.08
Realized gains on investment account securities (*) -.04
Income before taxes and extraordinary items 2.03 1.81
Taxes .72 .63
Extraordinary items (*) (*)
Net income (return on assets) 1.31 1.18
Cash dividends declared .96 .89
Retained income .35 .29
MEMO: Return on equity 15.41 14.01
B. Ten largest banks by assets
Item 1991 1992
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 85.41 85.16
Loans and leases, net 62.14 58.34
Commercial and industrial 22.42 20.32
U.S. addressees 13.44 12.00
Foreign addressees 8.97 8.32
Consumer 7.20 7.31
Credit card 2.53 2.61
Installment and other 4.67 4.70
Real estate 21.68 19.93
In domestic offices 18.37 17.07
Construction and land development 3.42 2.48
Farmland .08 .07
One- to four-family residential 10.34 10.08
Home equity 1.63 1.63
Other 8.71 8.46
Multifamily residential .57 .58
Nonfarm nonresidential 3.95 3.86
In foreign offices 3.32 2.85
Depository institutions 3.05 2.56
Foreign governments 2.88 2.75
Agricultural production .31 .28
Other loans 5.61 6.05
Lease-financing receivables 1.68 1.51
LESS: Unearned income on loans -.35 -.27
LESS: Loss reserves(1) -2.34 -2.08
Securities 15.58 19.13
Investment account 9.38 10.70
Debt 9.08 10.36
U.S. Treasury 1.35 2.30
U.S. government agency and
corporation obligations 3.46 4.45
Government-backed mortgage pools 2.26 2.43
Collateralized mortgage obligations 1.12 1.97
Other .08 .05
State and local government .77 .66
Private mortgage-backed securities .48 .33
Other 3.01 2.62
Equity .30 .33
Trading account 6.19 8.43
Gross federal funds sold and reverse RPs 2.96 3.23
Interest-bearing balances at depositories 4.74 4.45
Non-interest-earning assets 14.59 14.84
Revaluation gains on off-balance-sheet items(2) n.a. n.a.
Other 14.59 14.84
Liabilities 94.97 94.44
Interest-bearing liabilities 74.62 73.08
Deposits 57.67 55.73
In foreign offices 28.47 27.16
In domestic offices 29.19 28.56
Other checkable deposits 3.00 3.38
Savings (including MMDAs) 13.50 14.91
Small-denomination time deposits 6.55 5.72
Large-denomination time deposits 6.14 4.56
Gross federal funds purchased and RPs 6.80 6.19
Other 10.15 11.16
Non-interest-bearing liabilities 20.35 21.36
Demand deposits in domestic offices 10.36 11.05
Revaluation losses on off-balance-sheet items(2) n.a. n.a.
Other 9.99 10.30
Capital account 5.03 5.56
MEMO
Commercial real estate loans 9.05 8.01
Other real estate owned .78 1.13
Managed liabilities 53.23 50.82
Average net consolidated assets
(billions of dollars) 717 775
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 9.92 8.67
Taxable equivalent 9.95 8.72
Loans and leases, gross 10.46 9.36
Net of loss provisions 8.58 7.51
Securities 8.52 7.38
Taxable equivalent 8.63 7.54
Investment account 8.99 7.96
U.S. government and other debt 9.29 8.13
State and local 7.67 7.40
Equity 4.22 4.04
Trading account 7.84 6.69
Gross federal funds sold and reverse RPs 5.60 3.65
Interest-bearing balances at depositories 10.05 9.29
Rates paid
Interest-bearing liabilities 7.71 6.17
Interest-bearing deposits 7.09 5.33
In foreign offices 8.76 7.55
In domestic offices 5.47 3.25
Other checkable deposits 3.93 1.97
Savings (including MMDAs) 5.09 2.95
Large-denomination time deposits(4) 6.50 4.66
Small-denomination time deposits(4) 6.09 3.81
Gross federal funds purchased and RPs 5.98 4.04
Other interest-bearing liabilities 11.20 10.40
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 8.77 7.69
Taxable equivalent 8.80 7.72
Loans 6.77 5.65
Securities .84 .85
Gross federal funds sold and reverse RPs .17 .14
Other .98 1.05
Gross interest expense 5.81 4.54
Deposits 4.23 3.09
Gross federal funds purchased and RPs .43 .28
Other 1.15 1.17
Net interest income 2.96 3.15
Taxable equivalent 2.99 3.18
Loss provisioning(5) 1.21 1.12
Noninterest income 2.40 2.59
Service charges on deposits .26 .30
Income from fiduciary activities .33 .37
Trading income .64 .66
Interest rate exposures n.a. n.a.
Foreign exchange exposures n.a. n.a.
Equity, commodity, and other exposures n.a. n.a.
Other 1.16 1.27
Noninterest expense 3.83 3.86
Salaries, wages, and employee benefits 1.79 1.78
Expenses of premises and fixed assets .66 .65
Other 3.38 1.43
Net noninterest expense 1.44 1.27
Realized gains on investment account securities .04 .11
Income before taxes and extraordinary items .34 .87
Taxes .17 .26
Extraordinary items .03 (*)
Net income (return on assets) .21 .61
Cash dividends declared .21 .18
Retained income (*) .43
MEMO: Return on equity 4.23 10.91
Item 1993 1994
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 84.79 77.16
Loans and leases, net 55.57 49.91
Commercial and industrial 18.65 16.43
U.S. addressees 10.75 9.16
Foreign addressees 7.90 7.27
Consumer 7.33 6.59
Credit card 2.50 2.28
Installment and other 4.83 4.31
Real estate 18.54 16.21
In domestic offices 15.99 13.80
Construction and land development 1.59 .84
Farmland .07 .06
One- to four-family residential 10.29 9.69
Home equity 1.60 1.40
Other 8.68 8.29
Multifamily residential .53 .41
Nonfarm nonresidential 3.51 2.79
In foreign offices 2.55 2.41
Depository institutions 2.35 3.37
Foreign governments 2.46 1.27
Agricultural production .27 .25
Other loans 6.82 6.44
Lease-financing receivables 1.30 1.14
LESS: Unearned income on loans -.21 -.16
LESS: Loss reserves(1) -1.94 -1.63
Securities 22.74 20.61
Investment account 12.45 11.68
Debt 12.08 11.30
U.S. Treasury 2.39 2.17
U.S. government agency and
corporation obligations 6.14 5.16
Government-backed mortgage pools 3.30 2.79
Collateralized mortgage obligations 2.76 2.31
Other .08 .06
State and local government .59 .60
Private mortgage-backed securities .38 .43
Other 2.59 2.94
Equity .36 .38
Trading account 10.30 8.93
Gross federal funds sold and reverse RPs 2.71 2.68
Interest-bearing balances at depositories 3.76 3.95
Non-interest-earning assets 15.21 22.84
Revaluation gains on off-balance-sheet items(2) n.a. 11.23
Other 15.21 11.61
Liabilities 93.24 93.42
Interest-bearing liabilities 71.56 64.33
Deposits 52.91 48.20
In foreign offices 25.51 26.10
In domestic offices 27.41 22.10
Other checkable deposits 3.45 2.91
Savings (including MMDAs) 15.33 12.70
Small-denomination time deposits 5.09 3.98
Large-denomination time deposits 3.53 2.51
Gross federal funds purchased and RPs 6.70 5.83
Other 11.94 10.29
Non-interest-bearing liabilities 21.68 29.09
Demand deposits in domestic offices 11.27 10.15
Revaluation losses on off-balance-sheet items(2) n.a. 10.22
Other 10.41 10.51
Capital account 6.76 6.58
MEMO
Commercial real estate loans 6.46 4.65
Other real estate owned 1.02 .58
Managed liabilities 49.23 46.21
Average net consolidated assets
(billions of dollars) 818 949
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 8.16 8.15
Taxable equivalent 8.20 8.18
Loans and leases, gross 9.07 8.89
Net of loss provisions 7.95 8.38
Securities 6.69 7.09
Taxable equivalent 6.77 7.19
Investment account 6.90 6.57
U.S. government and other debt 6.99 6.70
State and local 6.99 6.35
Equity 3.72 3.27
Trading account 6.45 7.79
Gross federal funds sold and reverse RPs 3.02 4.52
Interest-bearing balances at depositories 8.34 7.27
Rates paid
Interest-bearing liabilities 5.60 5.43
Interest-bearing deposits 4.50 4.32
In foreign offices 6.87 6.04
In domestic offices 2.36 2.35
Other checkable deposits 1.28 1.10
Savings (including MMDAs) 2.14 2.35
Large-denomination time deposits(4) 3.55 3.12
Small-denomination time deposits(4) 3.01 2.80
Gross federal funds purchased and RPs 3.26 4.05
Other interest-bearing liabilities 11.16 10.87
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 7.22 6.37
Taxable equivalent 7.25 6.40
Loans 5.22 4.49
Securities .86 .77
Gross federal funds sold and reverse RPs .11 .15
Other 1.04 .97
Gross interest expense 4.06 3.52
Deposits 2.48 2.15
Gross federal funds purchased and RPs .24 .24
Other 1.35 1.13
Net interest income 3.16 2.86
Taxable equivalent 3.19 2.88
Loss provisioning(5) .64 .26
Noninterest income 2.99 2.33
Service charges on deposits .30 .26
Income from fiduciary activities .39 .36
Trading income .91 .53
Interest rate exposures n.a. n.a.
Foreign exchange exposures n.a. n.a.
Equity, commodity, and other exposures n.a. n.a.
Other 1.38 1.18
Noninterest expense 4.13 3.56
Salaries, wages, and employee benefits 1.88 1.65
Expenses of premises and fixed assets .66 .55
Other 1.59 1.36
Net noninterest expense 1.14 1.23
Realized gains on investment account securities .13 .02
Income before taxes and extraordinary items 1.50 1.39
Taxes .53 .48
Extraordinary items .16 (*)
Net income (return on assets) 1.13 .91
Cash dividends declared .28 .58
Retained income .85 .33
MEMO: Return on equity 16.75 13.86
Item 1995 1996
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 77.02 79.94
Loans and leases, net 50.05 53.51
Commercial and industrial 16.16 17.17
U.S. addressees 8.66 9.59
Foreign addressees 7.50 7.59
Consumer 6.60 6.22
Credit card 1.96 1.23
Installment and other 4.65 4.99
Real estate 15.82 16.53
In domestic offices 13.48 14.44
Construction and land development .58 .51
Farmland .06 .06
One- to four-family residential 9.62 10.43
Home equity 1.40 1.53
Other 8.22 8.90
Multifamily residential .38 .38
Nonfarm nonresidential 2.83 3.05
In foreign offices 2.35 2.09
Depository institutions 4.95 6.06
Foreign governments .90 .69
Agricultural production .21 .23
Other loans 5.85 6.42
Lease-financing receivables 1.14 1.59
LESS: Unearned income on loans -.14 -.11
LESS: Loss reserves(1) -1.45 -1.30
Securities 19.53 19.83
Investment account 10.65 10.60
Debt 10.27 10.22
U.S. Treasury 2.03 1.93
U.S. government agency and
corporation obligations 4.46 4.59
Government-backed mortgage pools 2.89 3.58
Collateralized mortgage obligations 1.50 .95
Other .08 .06
State and local government .49 .39
Private mortgage-backed securities .32 .30
Other 2.97 3.01
Equity .38 .38
Trading account 8.88 9.23
Gross federal funds sold and reverse RPs 3.20 3.10
Interest-bearing balances at depositories 4.25 3.50
Non-interest-earning assets 22.98 20.06
Revaluation gains on off-balance-sheet items(2) 10.77 7.63
Other 12.21 12.43
Liabilities 93.59 93.04
Interest-bearing liabilities 63.37 64.45
Deposits 47.49 47.87
In foreign offices 28.36 26.41
In domestic offices 19.12 21.46
Other checkable deposits 2.30 1.61
Savings (including MMDAs) 10.56 12.31
Small-denomination time deposits 4.04 4.68
Large-denomination time deposits 2.23 2.86
Gross federal funds purchased and RPs 6.17 5.88
Other 9.71 10.69
Non-interest-bearing liabilities 30.22 28.59
Demand deposits in domestic offices 8.88 9.73
Revaluation losses on off-balance-sheet items(2) 10.68 7.27
Other 10.66 11.59
Capital account 6.41 6.96
MEMO
Commercial real estate loans 4.40 4.65
Other real estate owned .27 .18
Managed liabilities 47.94 47.39
Average net consolidated assets
(billions of dollars) 1,051 1,189
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 8.20 7.72
Taxable equivalent 8.22 7.74
Loans and leases, gross 8.84 8.32
Net of loss provisions 8.62 8.11
Securities 7.41 6.80
Taxable equivalent 7.47 6.85
Investment account 7.06 6.71
U.S. government and other debt 7.22 6.86
State and local 6.23 5.73
Equity 4.03 3.84
Trading account 7.83 6.90
Gross federal funds sold and reverse RPs 5.20 4.92
Interest-bearing balances at depositories 7.15 6.71
Rates paid
Interest-bearing liabilities 5.88 5.44
Interest-bearing deposits 4.99 4.57
In foreign offices 6.07 5.62
In domestic offices 3.42 3.32
Other checkable deposits 1.29 1.32
Savings (including MMDAs) 3.11 2.76
Large-denomination time deposits(4) 3.73 4.62
Small-denomination time deposits(4) 5.08 4.58
Gross federal funds purchased and RPs 5.22 4.93
Other interest-bearing liabilities 9.80 8.86
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 6.42 6.26
Taxable equivalent 6.43 6.27
Loans 4.44 4.48
Securities .75 .71
Gross federal funds sold and reverse RPs .21 .18
Other 1.00 .88
Gross interest expense 3.74 3.52
Deposits 2.43 2.26
Gross federal funds purchased and RPs .35 .31
Other .95 .95
Net interest income 2.68 2.73
Taxable equivalent 2.70 2.75
Loss provisioning(5) .11 .11
Noninterest income 2.16 2.34
Service charges on deposits .25 .28
Income from fiduciary activities .30 .31
Trading income .46 .52
Interest rate exposures n.a. .30
Foreign exchange exposures n.a. .17
Equity, commodity, and other exposures n.a. .05
Other 1.15 1.23
Noninterest expense 3.32 3.57
Salaries, wages, and employee benefits 1.58 1.57
Expenses of premises and fixed assets .50 .50
Other 1.24 1.50
Net noninterest expense 1.16 1.23
Realized gains on investment account securities .03 .04
Income before taxes and extraordinary items 1.44 1.44
Taxes .55 .52
Extraordinary items (*) (*)
Net income (return on assets) .88 .92
Cash dividends declared .57 .70
Retained income .31 .21
MEMO: Return on equity 13.78 13.21
Item 1997 1998
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 81.62 81.06
Loans and leases, net 50.91 50.76
Commercial and industrial 16.90 18.07
U.S. addressees 10.24 11.76
Foreign addressees 6.66 6.31
Consumer 6.40 6.04
Credit card 1.34 1.30
Installment and other 5.06 4.74
Real estate 17.42 16.51
In domestic offices 15.69 15.08
Construction and land development .68 .77
Farmland .09 .09
One- to four-family residential 11.02 10.33
Home equity 1.70 1.72
Other 9.31 8.61
Multifamily residential .39 .38
Nonfarm nonresidential 3.52 3.51
In foreign offices 1.73 1.43
Depository institutions 4.14 4.00
Foreign governments .45 .35
Agricultural production .31 .28
Other loans 4.21 3.79
Lease-financing receivables 2.24 2.81
LESS: Unearned income on loans -.07 -.06
LESS: Loss reserves(1) -1.08 -1.01
Securities 20.00 19.72
Investment account 10.97 12.12
Debt 10.55 11.64
U.S. Treasury 1.56 1.70
U.S. government agency and
corporation obligations 5.34 6.31
Government-backed mortgage pools 4.26 5.13
Collateralized mortgage obligations .93 .93
Other .15 .26
State and local government .51 .47
Private mortgage-backed securities .32 .60
Other 2.81 2.57
Equity .42 .47
Trading account 9.03 7.60
Gross federal funds sold and reverse RPs 7.56 7.81
Interest-bearing balances at depositories 3.15 2.77
Non-interest-earning assets 18.38 18.94
Revaluation gains on off-balance-sheet items(2) 7.36 7.62
Other 11.02 11.33
Liabilities 92.61 92.58
Interest-bearing liabilities 65.83 65.81
Deposits 47.36 47.65
In foreign offices 22.18 20.17
In domestic offices 25.18 27.48
Other checkable deposits 1.21 0.99
Savings (including MMDAs) 14.26 15.83
Small-denomination time deposits 5.82 6.03
Large-denomination time deposits 3.89 4.62
Gross federal funds purchased and RPs 10.26 9.78
Other 8.20 8.37
Non-interest-bearing liabilities 26.78 26.77
Demand deposits in domestic offices 8.98 8.46
Revaluation losses on off-balance-sheet items(2) 7.53 7.67
Other 10.27 10.65
Capital account 7.39 7.42
MEMO
Commercial real estate loans 5.45 5.61
Other real estate owned .13 .09
Managed liabilities 46.02 44.42
Average net consolidated assets
(billions of dollars) 1,514 1,820
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 7.55 7.54
Taxable equivalent 7.60 7.57
Loans and leases, gross 8.25 8.21
Net of loss provisions 7.93 7.62
Securities 6.70 6.79
Taxable equivalent 6.85 6.89
Investment account 6.61 6.71
U.S. government and other debt 6.80 6.92
State and local 5.55 5.50
Equity 3.47 2.98
Trading account 6.81 6.92
Gross federal funds sold and reverse RPs 5.45 5.20
Interest-bearing balances at depositories 6.91 7.16
Rates paid
Interest-bearing liabilities 5.41 5.29
Interest-bearing deposits 4.54 4.40
In foreign offices 5.52 5.83
In domestic offices 3.69 3.39
Other checkable deposits 1.97 1.67
Savings (including MMDAs) 2.68 2.45
Large-denomination time deposits(4) 5.17 4.53
Small-denomination time deposits(4) 5.45 5.21
Gross federal funds purchased and RPs 5.02 5.18
Other interest-bearing liabilities 9.13 8.85
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 6.31 6.21
Taxable equivalent 6.33 6.22
Loans 4.31 4.27
Securities .73 .81
Gross federal funds sold and reverse RPs .45 .42
Other .82 .70
Gross interest expense 3.55 3.48
Deposits 2.26 2.20
Gross federal funds purchased and RPs .54 .54
Other .75 .74
Net interest income 2.76 2.73
Taxable equivalent 2.79 2.75
Loss provisioning(5) .16 .31
Noninterest income 2.12 2.15
Service charges on deposits .32 .33
Income from fiduciary activities .34 .32
Trading income .43 .33
Interest rate exposures .23 .10
Foreign exchange exposures .20 .20
Equity, commodity, and other exposures (*) .03
Other 1.04 1.17
Noninterest expense 3.24 3.47
Salaries, wages, and employee benefits 1.45 1.45
Expenses of premises and fixed assets .47 .47
Other 1.33 1.54
Net noninterest expense 1.12 1.32
Realized gains on investment account securities .08 .11
Income before taxes and extraordinary items 1.56 1.22
Taxes .58 .44
Extraordinary items (*) (*)
Net income (return on assets) .98 .78
Cash dividends declared .82 .53
Retained income .15 .25
MEMO: Return on equity 13.22 10.53
Item 1999 2000
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 81.28 82.02
Loans and leases, net 53.37 55.22
Commercial and industrial 19.24 19.95
U.S. addressees 13.14 13.94
Foreign addressees 6.10 6.01
Consumer 5.94 5.45
Credit card 1.36 1.34
Installment and other 4.58 4.11
Real estate 16.96 19.82
In domestic offices 15.55 18.48
Construction and land development .90 .98
Farmland .10 .11
One- to four-family residential 10.77 13.37
Home equity 1.54 1.60
Other 9.22 11.76
Multifamily residential .43 .60
Nonfarm nonresidential 3.35 3.42
In foreign offices 1.41 1.34
Depository institutions 4.30 3.75
Foreign governments .38 .28
Agricultural production .26 .23
Other loans 3.97 3.68
Lease-financing receivables 3.40 3.07
LESS: Unearned income on loans -.05 -.04
LESS: Loss reserves(1) -1.03 -.97
Securities 18.34 18.98
Investment account 13.08 13.71
Debt 12.57 13.03
U.S. Treasury 1.98 1.96
U.S. government agency and
corporation obligations 6.35 6.59
Government-backed mortgage pools 5.03 4.88
Collateralized mortgage obligations .79 .93
Other .52 .78
State and local government .45 .51
Private mortgage-backed securities .57 .51
Other 3.22 3.47
Equity .51 .68
Trading account 5.25 5.26
Gross federal funds sold and reverse RPs 6.64 5.02
Interest-bearing balances at depositories 2.94 2.80
Non-interest-earning assets 18.72 17.98
Revaluation gains on off-balance-sheet items(2) 6.66 5.66
Other 12.05 12.32
Liabilities 92.28 92.36
Interest-bearing liabilities 66.87 67.81
Deposits 48.79 49.27
In foreign offices 21.04 21.62
In domestic offices 27.76 27.66
Other checkable deposits .72 .74
Savings (including MMDAs) 16.84 16.73
Small-denomination time deposits 5.66 5.38
Large-denomination time deposits 4.54 4.80
Gross federal funds purchased and RPs 8.84 8.89
Other 9.24 9.65
Non-interest-bearing liabilities 25.41 24.56
Demand deposits in domestic offices 7.83 7.28
Revaluation losses on off-balance-sheet items(2) 6.51 5.69
Other 11.06 11.59
Capital account 7.72 7.64
MEMO
Commercial real estate loans 5.69 5.87
Other real estate owned .06 .04
Managed liabilities 45.49 46.84
Average net consolidated assets
(billions of dollars) 1,935 2,234
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 7.35 7.77
Taxable equivalent 7.39 7.78
Loans and leases, gross 7.99 8.46
Net of loss provisions 7.50 7.84
Securities 6.52 6.52
Taxable equivalent 6.65 6.55
Investment account 6.50 6.45
U.S. government and other debt 6.68 6.70
State and local 5.65 5.69
Equity 2.93 2.55
Trading account 6.56 6.70
Gross federal funds sold and reverse RPs 4.52 4.93
Interest-bearing balances at depositories 7.22 7.43
Rates paid
Interest-bearing liabilities 4.79 5.37
Interest-bearing deposits 3.82 4.40
In foreign offices 4.99 5.67
In domestic offices 3.04 3.51
Other checkable deposits 1.44 1.61
Savings (including MMDAs) 2.11 2.43
Large-denomination time deposits(4) 4.36 5.35
Small-denomination time deposits(4) 4.95 5.50
Gross federal funds purchased and RPs 4.53 5.47
Other interest-bearing liabilities 8.61 8.15
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 6.01 6.39
Taxable equivalent 6.03 6.41
Loans 4.35 4.74
Securities .85 .88
Gross federal funds sold and reverse RPs .30 .25
Other .51 .51
Gross interest expense 3.16 3.60
Deposits 1.97 2.33
Gross federal funds purchased and RPs .40 .49
Other .79 .78
Net interest income 2.84 2.78
Taxable equivalent 2.86 2.80
Loss provisioning(5) .26 .35
Noninterest income 2.55 2.51
Service charges on deposits .37 .40
Income from fiduciary activities .31 .27
Trading income .46 .48
Interest rate exposures .17 .20
Foreign exchange exposures .19 .18
Equity, commodity, and other exposures .09 .11
Other 1.41 1.36
Noninterest expense 3.45 3.30
Salaries, wages, and employee benefits 1.57 1.46
Expenses of premises and fixed assets .50 .47
Other 1.38 1.38
Net noninterest expense .90 .79
Realized gains on investment account securities .03 -.03
Income before taxes and extraordinary items 1.71 1.60
Taxes .66 .60
Extraordinary items (*) (*)
Net income (return on assets) 1.05 1.00
Cash dividends declared .79 .86
Retained income .26 .14
MEMO: Return on equity 13.58 13.07
C. Banks ranked 11 through 100 by assets
Item 1991 1992
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 86.88 87.97
Loans and leases, net 60.08 58.30
Commercial and industrial 20.53 18.83
U.S. addressees 19.30 17.78
Foreign addressees 1.24 1.05
Consumer 11.66 11.72
Credit card 5.04 5.16
Installment and other 6.62 6.56
Real estate 21.51 21.89
In domestic offices 21.37 21.78
Construction and land development 4.00 3.02
Farmland .12 .14
One- to four-family residential 10.17 11.36
Home equity 2.07 2.50
Other 8.10 8.85
Multifamily residential .54 .66
Nonfarm nonresidential 6.53 6.61
In foreign offices .14 .11
Depository institutions 1.58 1.43
Foreign governments .39 .33
Agricultural production .31 .31
Other loans 4.55 4.28
Lease-financing receivables 1.53 1.49
LESS: Unearned income on loans -.22 -.17
LESS: Loss reserves(1) -1.76 -1.79
Securities 17.38 20.38
Investment account 16.25 19.24
Debt 16.02 18.99
U.S. Treasury 3.78 5.88
U.S. government agency and
corporation obligations 8.43 9.26
Government-backed mortgage pools 5.38 5.22
Collateralized mortgage obligations 2.48 3.54
Other .57 .50
State and local government 1.63 1.46
Private mortgage-backed securities 1.09 1.05
Other 1.10 1.34
Equity .22 .25
Trading account 1.13 1.14
Gross federal funds sold and reverse RPs 4.90 4.78
Interest-bearing balances at depositories 4.51 4.52
Non-interest-earning assets 13.12 12.03
Revaluation gains on off-balance-sheet items(2) n.a. n.a.
Other 13.12 12.03
Liabilities 93.93 93.13
Interest-bearing liabilities 76.07 74.66
Deposits 59.24 56.99
In foreign offices 6.69 6.20
In domestic offices 52.54 50.79
Other checkable deposits 5.36 6.26
Savings (including MMDAs) 17.62 20.21
Small-denomination time deposits 17.99 15.98
Large-denomination time deposits 11.56 8.34
Gross federal funds purchased and RPs 10.94 11.45
Other 5.89 6.22
Non-interest-bearing liabilities 17.87 18.47
Demand deposits in domestic offices 13.76 14.52
Revaluation losses on off-balance-sheet items(2) n.a. n.a.
Other 4.10 3.95
Capital account 6.07 6.87
MEMO
Commercial real estate loans 11.83 11.09
Other real estate owned .76 .70
Managed liabilities 35.49 32.59
Average net consolidated assets
(billions of dollars) 1,006 1,003
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 9.30 7.97
Taxable equivalent 9.39 8.07
Loans and leases, gross 9.96 8.75
Net of loss provisions 7.98 7.45
Securities 8.23 7.00
Taxable equivalent 8.57 7.30
Investment account 8.37 7.12
U.S. government and other debt 8.51 7.16
State and local 7.23 6.80
Equity 7.36 6.71
Trading account 6.46 4.73
Gross federal funds sold and reverse RPs 5.80 3.70
Interest-bearing balances at depositories 8.15 6.76
Rates paid
Interest-bearing liabilities 6.41 4.43
Interest-bearing deposits 6.27 4.30
In foreign offices 8.39 7.26
In domestic offices 6.01 3.96
Other checkable deposits 4.21 2.43
Savings (including MMDAs) 5.04 3.07
Large-denomination time deposits(4) 6.77 5.10
Small-denomination time deposits(4) 6.96 5.07
Gross federal funds purchased and RPs 5.75 3.57
Other interest-bearing liabilities 6.55 5.77
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 8.24 7.12
Taxable equivalent 8.31 7.19
Loans 6.15 5.23
Securities 1.36 1.37
Gross federal funds sold and reverse RPs .28 .18
Other .45 .34
Gross interest expense 4.80 3.26
Deposits 3.75 2.48
Gross federal funds purchased and RPs .67 .43
Other .38 .35
Net interest income 3.43 3.86
Taxable equivalent 3.51 3.93
Loss provisioning(5) 1.22 .78
Noninterest income 2.05 2.25
Service charges on deposits .41 .44
Income from fiduciary activities .36 .38
Trading income .10 .09
Interest rate exposures n.a. n.a.
Foreign exchange exposures n.a. n.a.
Equity, commodity, and other exposures n.a. n.a.
Other 1.19 1.33
Noninterest expense 3.77 3.98
Salaries, wages, and employee benefits 1.52 1.53
Expenses of premises and fixed assets .51 .49
Other 1.74 1.95
Net noninterest expense 1.73 1.73
Realized gains on investment account securities .14 .15
Income before taxes and extraordinary items .62 1.50
Taxes .19 .48
Extraordinary items .03 .03
Net income (return on assets) .47 1.04
Cash dividends declared .47 .46
Retained income (*) .58
MEMO: Return on equity 7.71 15.16
Item 1993 1994
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 88.36 88.16
Loans and leases, net 57.33 58.56
Commercial and industrial 18.03 18.03
U.S. addressees 17.05 16.99
Foreign addressees .98 1.04
Consumer 11.47 12.62
Credit card 5.23 5.99
Installment and other 6.24 6.63
Real estate 22.11 22.26
In domestic offices 22.01 22.17
Construction and land development 2.08 1.63
Farmland .13 .14
One- to four-family residential 12.30 12.98
Home equity 2.54 2.33
Other 9.76 10.65
Multifamily residential .71 .71
Nonfarm nonresidential 6.79 6.72
In foreign offices .10 .09
Depository institutions 1.30 1.49
Foreign governments .30 .28
Agricultural production .29 .29
Other loans 4.05 3.47
Lease-financing receivables 1.47 1.60
LESS: Unearned income on loans -.11 -.07
LESS: Loss reserves(1) -1.60 -1.41
Securities 21.97 21.19
Investment account 20.60 19.82
Debt 20.34 19.50
U.S. Treasury 7.05 6.85
U.S. government agency and
corporation obligations 9.55 9.28
Government-backed mortgage pools 5.21 5.30
Collateralized mortgage obligations 3.71 3.07
Other .63 .91
State and local government 1.31 1.21
Private mortgage-backed securities 1.06 .93
Other 1.37 1.22
Equity .26 .32
Trading account 1.37 1.38
Gross federal funds sold and reverse RPs 4.98 5.11
Interest-bearing balances at depositories 4.08 3.30
Non-interest-earning assets 11.64 11.84
Revaluation gains on off-balance-sheet items(2) n.a. .60
Other 11.64 11.23
Liabilities 92.56 92.47
Interest-bearing liabilities 73.38 72.86
Deposits 54.22 53.03
In foreign offices 6.78 8.05
In domestic offices 47.43 44.98
Other checkable deposits 7.21 6.91
Savings (including MMDAs) 20.60 20.13
Small-denomination time deposits 14.19 13.26
Large-denomination time deposits 5.44 4.68
Gross federal funds purchased and RPs 11.93 11.48
Other 7.23 8.34
Non-interest-bearing liabilities 19.18 19.62
Demand deposits in domestic offices 15.38 15.27
Revaluation losses on off-balance-sheet items(2) n.a. .57
Other 3.80 3.89
Capital account 7.44 7.53
MEMO
Commercial real estate loans 10.29 9.69
Other real estate owned .47 .25
Managed liabilities 31.76 32.89
Average net consolidated assets
(billions of dollars) 1,082 1,204
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 7.35 7.29
Taxable equivalent 7.45 7.37
Loans and leases, gross 8.25 8.22
Net of loss provisions 7.46 7.68
Securities 6.05 5.70
Taxable equivalent 6.32 5.92
Investment account 6.14 5.70
U.S. government and other debt 6.14 5.69
State and local 6.30 6.04
Equity 5.20 5.00
Trading account 4.74 5.75
Gross federal funds sold and reverse RPs 3.11 4.31
Interest-bearing balances at depositories 6.50 4.69
Rates paid
Interest-bearing liabilities 3.76 3.72
Interest-bearing deposits 3.51 3.25
In foreign offices 7.37 4.60
In domestic offices 2.98 3.03
Other checkable deposits 1.70 1.62
Savings (including MMDAs) 2.33 2.46
Large-denomination time deposits(4) 4.30 4.21
Small-denomination time deposits(4) 4.06 4.18
Gross federal funds purchased and RPs 3.04 4.28
Other interest-bearing liabilities 5.97 5.24
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 6.58 6.46
Taxable equivalent 6.64 6.51
Loans 4.84 4.91
Securities 1.26 1.13
Gross federal funds sold and reverse RPs .15 .21
Other .32 .21
Gross interest expense 2.74 2.67
Deposits 1.93 1.73
Gross federal funds purchased and RPs .38 .51
Other .43 .43
Net interest income 3.84 3.79
Taxable equivalent 3.91 3.85
Loss provisioning(5) .47 .32
Noninterest income 2.29 2.25
Service charges on deposits .46 .45
Income from fiduciary activities .38 .39
Trading income .14 .08
Interest rate exposures n.a. n.a.
Foreign exchange exposures n.a. n.a.
Equity, commodity, and other exposures n.a. n.a.
Other 1.32 1.33
Noninterest expense 3.95 3.86
Salaries, wages, and employee benefits 1.52 1.50
Expenses of premises and fixed assets .47 .47
Other 1.95 1.89
Net noninterest expense 1.65 1.61
Realized gains on investment account securities .09 -.01
Income before taxes and extraordinary items 1.81 1.85
Taxes .56 .63
Extraordinary items (*) (*)
Net income (return on assets) 1.25 1.22
Cash dividends declared .76 .86
Retained income .49 .36
MEMO: Return on equity 16.86 16.27
Item 1995 1996
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 88.31 87.75
Loans and leases, net 62.68 64.24
Commercial and industrial 19.26 18.95
U.S. addressees 18.10 17.71
Foreign addressees 1.16 1.24
Consumer 14.23 15.67
Credit card 7.34 8.26
Installment and other 6.89 7.40
Real estate 23.25 23.26
In domestic offices 23.10 23.10
Construction and land development 1.50 1.55
Farmland .13 .13
One- to four-family residential 14.16 14.15
Home equity 2.19 2.08
Other 11.97 12.07
Multifamily residential .77 .89
Nonfarm nonresidential 6.54 6.37
In foreign offices .15 .16
Depository institutions 1.59 1.50
Foreign governments .20 .20
Agricultural production .26 .28
Other loans 3.32 3.30
Lease-financing receivables 1.96 2.41
LESS: Unearned income on loans -.07 -.06
LESS: Loss reserves(1) -1.32 -1.27
Securities 18.64 16.87
Investment account 17.88 16.06
Debt 17.51 15.62
U.S. Treasury 4.82 3.34
U.S. government agency and
corporation obligations 9.40 9.12
Government-backed mortgage pools 5.06 5.42
Collateralized mortgage obligations 2.82 2.16
Other 1.51 1.54
State and local government 1.11 .99
Private mortgage-backed securities 1.02 .96
Other 1.16 1.21
Equity .37 .44
Trading account .76 .80
Gross federal funds sold and reverse RPs 4.52 4.26
Interest-bearing balances at depositories 2.47 2.38
Non-interest-earning assets 11.69 12.25
Revaluation gains on off-balance-sheet items(2) .50 .51
Other 11.18 11.75
Liabilities 92.23 92.02
Interest-bearing liabilities 74.05 73.14
Deposits 52.32 51.81
In foreign offices 8.12 7.52
In domestic offices 44.20 44.30
Other checkable deposits 5.62 3.06
Savings (including MMDAs) 18.78 20.76
Small-denomination time deposits 14.24 14.09
Large-denomination time deposits 5.55 6.39
Gross federal funds purchased and RPs 11.37 10.00
Other 10.36 11.32
Non-interest-bearing liabilities 18.18 18.89
Demand deposits in domestic offices 14.26 14.47
Revaluation losses on off-balance-sheet items(2) .49 .49
Other 3.43 3.93
Capital account 7.77 7.98
MEMO
Commercial real estate loans 9.42 9.38
Other real estate owned .13 .08
Managed liabilities 35.68 35.60
Average net consolidated assets
(billions of dollars) 1,338 1,450
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 8.31 8.16
Taxable equivalent 8.37 8.23
Loans and leases, gross 9.10 8.87
Net of loss provisions 8.49 8.05
Securities 6.38 6.42
Taxable equivalent 6.56 6.66
Investment account 6.34 6.41
U.S. government and other debt 6.38 6.50
State and local 6.05 5.84
Equity 5.68 4.84
Trading account 7.27 6.53
Gross federal funds sold and reverse RPs 5.91 5.31
Interest-bearing balances at depositories 6.78 5.82
Rates paid
Interest-bearing liabilities 4.94 4.70
Interest-bearing deposits 4.35 4.15
In foreign offices 6.30 5.29
In domestic offices 4.01 3.96
Other checkable deposits 1.89 1.78
Savings (including MMDAs) 3.10 2.91
Large-denomination time deposits(4) 5.70 5.50
Small-denomination time deposits(4) 5.35 5.26
Gross federal funds purchased and RPs 5.86 5.19
Other interest-bearing liabilities 6.43 5.95
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 7.40 7.24
Taxable equivalent 7.45 7.28
Loans 5.79 5.80
Securities 1.13 1.03
Gross federal funds sold and reverse RPs .27 .23
Other .21 .18
Gross interest expense 3.62 3.39
Deposits 2.29 2.18
Gross federal funds purchased and RPs .67 .55
Other .66 .66
Net interest income 3.78 3.84
Taxable equivalent 3.84 3.89
Loss provisioning(5) .39 .54
Noninterest income 2.38 2.61
Service charges on deposits .44 .44
Income from fiduciary activities .40 .43
Trading income .09 .08
Interest rate exposures n.a. .03
Foreign exchange exposures n.a. .04
Equity, commodity, and other exposures n.a. .01
Other 1.45 1.67
Noninterest expense 3.79 3.85
Salaries, wages, and employee benefits 1.47 1.51
Expenses of premises and fixed assets .47 .48
Other 1.85 1.86
Net noninterest expense 1.41 1.24
Realized gains on investment account securities .02 .02
Income before taxes and extraordinary items 2.01 2.09
Taxes .70 .75
Extraordinary items (*) (*)
Net income (return on assets) 1.31 1.34
Cash dividends declared .85 1.07
Retained income .46 .26
MEMO: Return on equity 16.84 16.78
Item 1997 1998
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 86.95 87.39
Loans and leases, net 63.89 64.42
Commercial and industrial 19.01 18.92
U.S. addressees 17.78 17.59
Foreign addressees 1.22 1.33
Consumer 15.62 14.53
Credit card 8.50 7.67
Installment and other 7.12 6.86
Real estate 22.99 24.60
In domestic offices 22.85 24.42
Construction and land development 1.69 2.03
Farmland .14 .17
One- to four-family residential 13.88 14.86
Home equity 2.22 2.17
Other 11.65 12.69
Multifamily residential .93 1.00
Nonfarm nonresidential 6.21 6.36
In foreign offices .15 .18
Depository institutions 1.27 1.06
Foreign governments .09 .06
Agricultural production .29 .33
Other loans 3.21 3.38
Lease-financing receivables 2.70 2.75
LESS: Unearned income on loans -.05 -.04
LESS: Loss reserves(1) -1.24 -1.16
Securities 15.80 16.67
Investment account 15.07 16.13
Debt 14.58 15.58
U.S. Treasury 2.81 2.25
U.S. government agency and
corporation obligations 8.98 9.93
Government-backed mortgage pools 5.17 4.98
Collateralized mortgage obligations 2.13 2.83
Other 1.68 2.12
State and local government .88 .92
Private mortgage-backed securities .73 .96
Other 1.18 1.53
Equity .49 .55
Trading account .73 .54
Gross federal funds sold and reverse RPs 4.38 3.57
Interest-bearing balances at depositories 2.88 2.72
Non-interest-earning assets 13.05 12.61
Revaluation gains on off-balance-sheet items(2) .69 .75
Other 12.36 11.86
Liabilities 91.85 91.63
Interest-bearing liabilities 72.62 73.40
Deposits 51.47 51.51
In foreign offices 7.85 8.15
In domestic offices 43.62 43.36
Other checkable deposits 1.95 1.75
Savings (including MMDAs) 21.09 21.41
Small-denomination time deposits 13.43 12.84
Large-denomination time deposits 7.15 7.36
Gross federal funds purchased and RPs 9.36 9.48
Other 11.79 12.41
Non-interest-bearing liabilities 19.22 18.23
Demand deposits in domestic offices 14.17 12.40
Revaluation losses on off-balance-sheet items(2) .68 .76
Other 4.37 5.07
Capital account 8.15 8.37
MEMO
Commercial real estate loans 9.44 10.11
Other real estate owned .06 .04
Managed liabilities 36.60 38.09
Average net consolidated assets
(billions of dollars) 1,604 1,745
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 8.31 8.10
Taxable equivalent 8.36 8.17
Loans and leases, gross 9.03 8.82
Net of loss provisions 8.11 8.01
Securities 6.50 6.21
Taxable equivalent 6.70 6.46
Investment account 6.52 6.22
U.S. government and other debt 6.63 6.31
State and local 5.58 5.36
Equity 5.07 5.26
Trading account 6.05 5.86
Gross federal funds sold and reverse RPs 5.45 5.46
Interest-bearing balances at depositories 5.77 5.67
Rates paid
Interest-bearing liabilities 4.79 4.76
Interest-bearing deposits 4.22 4.15
In foreign offices 5.23 5.22
In domestic offices 4.04 3.96
Other checkable deposits 2.01 2.41
Savings (including MMDAs) 2.84 2.76
Large-denomination time deposits(4) 5.47 5.32
Small-denomination time deposits(4) 5.43 5.35
Gross federal funds purchased and RPs 5.29 5.22
Other interest-bearing liabilities 5.85 5.81
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 7.26 7.16
Taxable equivalent 7.30 7.20
Loans 5.87 5.79
Securities .98 1.00
Gross federal funds sold and reverse RPs .22 .19
Other .19 .18
Gross interest expense 3.41 3.45
Deposits 2.23 2.23
Gross federal funds purchased and RPs .51 .51
Other .68 .71
Net interest income 3.85 3.71
Taxable equivalent 3.89 3.75
Loss provisioning(5) .60 .53
Noninterest income 2.76 3.07
Service charges on deposits .44 .42
Income from fiduciary activities .44 .49
Trading income .08 .09
Interest rate exposures .02 .03
Foreign exchange exposures .05 .06
Equity, commodity, and other exposures (*) (*)
Other 1.79 2.07
Noninterest expense 3.85 4.03
Salaries, wages, and employee benefits 1.51 1.53
Expenses of premises and fixed assets .46 .46
Other 1.88 2.04
Net noninterest expense 1.10 .96
Realized gains on investment account securities .02 .03
Income before taxes and extraordinary items 2.18 2.24
Taxes .77 .79
Extraordinary items (*) (*)
Net income (return on assets) 1.42 1.46
Cash dividends declared .93 .96
Retained income .48 .50
MEMO: Return on equity 17.36 17.38
Item 1999 2000
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 87.95 88.25
Loans and leases, net 64.28 64.97
Commercial and industrial 19.40 18.20
U.S. addressees 18.18 17.66
Foreign addressees 1.22 .55
Consumer 13.57 13.80
Credit card 6.78 6.98
Installment and other 6.79 6.82
Real estate 24.81 26.23
In domestic offices 24.63 26.13
Construction and land development 2.43 3.00
Farmland .19 .22
One- to four-family residential 14.15 14.52
Home equity 2.08 2.49
Other 12.07 12.03
Multifamily residential 1.02 1.11
Nonfarm nonresidential 6.82 7.28
In foreign offices .19 .09
Depository institutions .92 1.04
Foreign governments .06 .03
Agricultural production .33 .37
Other loans 3.01 2.58
Lease-financing receivables 3.32 3.87
LESS: Unearned income on loans -.04 -.03
LESS: Loss reserves(1) -1.11 -1.12
Securities 17.80 17.33
Investment account 17.29 16.11
Debt 16.64 15.51
U.S. Treasury 1.70 1.12
U.S. government agency and
corporation obligations 10.58 9.71
Government-backed mortgage pools 5.12 4.31
Collateralized mortgage obligations 2.89 2.55
Other 2.56 2.84
State and local government .99 .96
Private mortgage-backed securities 1.35 1.66
Other 2.02 2.06
Equity .65 .60
Trading account .51 1.22
Gross federal funds sold and reverse RPs 3.34 3.77
Interest-bearing balances at depositories 2.53 2.18
Non-interest-earning assets 12.05 11.75
Revaluation gains on off-balance-sheet items(2) .57 .41
Other 11.48 11.34
Liabilities 91.65 91.57
Interest-bearing liabilities 74.95 76.40
Deposits 51.51 51.56
In foreign offices 7.97 7.28
In domestic offices 43.55 44.28
Other checkable deposits 1.60 1.32
Savings (including MMDAs) 22.47 22.36
Small-denomination time deposits 11.86 11.81
Large-denomination time deposits 7.62 8.78
Gross federal funds purchased and RPs 9.78 9.28
Other 13.67 15.56
Non-interest-bearing liabilities 16.70 15.17
Demand deposits in domestic offices 10.52 8.62
Revaluation losses on off-balance-sheet items(2) .58 .41
Other 5.59 6.14
Capital account 8.35 8.43
MEMO
Commercial real estate loans 11.00 12.07
Other real estate owned .03 .03
Managed liabilities 39.81 41.94
Average net consolidated assets
(billions of dollars) 1,880 2,029
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 7.84 8.47
Taxable equivalent 7.88 8.49
Loans and leases, gross 8.50 9.15
Net of loss provisions 7.68 8.13
Securities 6.34 6.71
Taxable equivalent 6.46 6.77
Investment account 6.36 6.74
U.S. government and other debt 6.47 6.86
State and local 5.21 5.25
Equity 5.33 6.36
Trading account 5.58 6.25
Gross federal funds sold and reverse RPs 5.12 6.04
Interest-bearing balances at depositories 4.81 5.49
Rates paid
Interest-bearing liabilities 4.38 5.22
Interest-bearing deposits 3.76 4.42
In foreign offices 4.70 5.38
In domestic offices 3.60 4.26
Other checkable deposits 2.03 2.57
Savings (including MMDAs) 2.49 2.94
Large-denomination time deposits(4) 4.96 5.88
Small-denomination time deposits(4) 5.03 5.73
Gross federal funds purchased and RPs 4.87 6.02
Other interest-bearing liabilities 5.41 6.36
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 6.99 7.56
Taxable equivalent 7.02 7.59
Loans 5.57 6.07
Securities 1.10 1.09
Gross federal funds sold and reverse RPs .18 .22
Other .14 .18
Gross interest expense 3.26 3.96
Deposits 2.02 2.41
Gross federal funds purchased and RPs .51 .56
Other .73 .98
Net interest income 3.72 3.60
Taxable equivalent 3.76 3.63
Loss provisioning(5) .54 .68
Noninterest income 3.35 3.14
Service charges on deposits .42 .42
Income from fiduciary activities .48 .52
Trading income .08 .08
Interest rate exposures .02 .02
Foreign exchange exposures .06 .05
Equity, commodity, and other exposures (*) (*)
Other 2.37 2.13
Noninterest expense 4.11 3.96
Salaries, wages, and employee benefits 1.53 1.44
Expenses of premises and fixed assets .45 .43
Other 2.13 2.10
Net noninterest expense .76 .82
Realized gains on investment account securities -.01 -.05
Income before taxes and extraordinary items 2.41 2.04
Taxes .87 .71
Extraordinary items (*) (*)
Net income (return on assets) 1.54 1.34
Cash dividends declared 1.16 .94
Retained income .38 .40
MEMO: Return on equity 18.48 15.85
D. Banks ranked 101 through 1,000 by assets
Item 1991 1992
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 88.90 89.02
Loans and leases, net 61.03 58.49
Commercial and industrial 15.04 13.34
U.S. addressees 14.88 13.16
Foreign addressees .16 .18
Consumer 15.13 14.18
Credit card 5.75 5.38
Installment and other 9.39 8.80
Real estate 27.51 28.11
In domestic offices 27.47 28.07
Construction and land development 3.67 2.86
Farmland .28 .32
One- to four-family residential 13.21 14.25
Home equity 2.53 2.56
Other 10.68 11.69
Multifamily residential .80 .95
Nonfarm nonresidential 9.50 9.68
In foreign offices .05 .04
Depository institutions .93 .80
Foreign governments .07 .05
Agricultural production .49 .54
Other loans .81 2.47
Lease-financing receivables .85 .78
LESS: Unearned income on loans -.40 -.30
LESS: Loss reserves(1) -1.42 -1.49
Securities 21.27 24.13
Investment account 20.91 23.78
Debt 20.54 23.32
U.S. Treasury 6.16 7.75
U.S. government agency and
corporation obligations 9.34 11.08
Government-backed mortgage pools 4.51 4.74
Collateralized mortgage obligations 2.73 3.95
Other 2.10 2.39
State and local government 2.65 2.27
Private mortgage-backed securities 1.16 1.01
Other 1.23 1.21
Equity .37 .46
Trading account .36 .35
Gross federal funds sold and reverse RPs 4.71 4.92
Interest-bearing balances at depositories 1.89 1.47
Non-interest-earning assets 11.10 10.98
Revaluation gains on off-balance-sheet items(2) n.a. n.a.
Other 11.10 10.98
Liabilities 92.90 92.47
Interest-bearing liabilities 77.26 75.98
Deposits 66.34 65.65
In foreign offices 1.76 1.56
In domestic offices 64.59 64.09
Other checkable deposits 7.82 9.14
Savings (including MMDAs) 20.79 23.34
Small-denomination time deposits 25.22 23.56
Large-denomination time deposits 10.76 8.06
Gross federal funds purchased and RPs 7.46 7.18
Other 3.46 3.15
Non-interest-bearing liabilities 15.64 16.49
Demand deposits in domestic offices 13.56 14.39
Revaluation losses on off-balance-sheet items(2) n.a. n.a.
Other 2.07 2.10
Capital account 7.10 7.53
MEMO
Commercial real estate loans 14.64 13.91
Other real estate owned .77 .80
Managed liabilities 23.48 20.00
Average net consolidated assets
(billions of dollars) 962 967
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 9.56 8.15
Taxable equivalent 9.70 8.26
Loans and leases, gross 10.44 9.12
Net of loss provisions 8.72 7.83
Securities 8.11 6.89
Taxable equivalent 8.54 7.19
Investment account 8.12 6.90
U.S. government and other debt 8.29 6.95
State and local 7.25 6.84
Equity 6.02 5.06
Trading account 7.19 5.62
Gross federal funds sold and reverse RPs 5.64 3.48
Interest-bearing balances at depositories 6.81 4.62
Rates paid
Interest-bearing liabilities 6.11 4.20
Interest-bearing deposits 6.06 4.17
In foreign offices 6.38 4.25
In domestic offices 6.05 4.17
Other checkable deposits 4.28 2.67
Savings (including MMDAs) 5.14 3.34
Large-denomination time deposits(4) 6.64 4.78
Small-denomination time deposits(4) 7.08 5.35
Gross federal funds purchased and RPs 5.62 3.46
Other interest-bearing liabilities 6.80 5.28
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 8.64 7.36
Taxable equivalent 8.76 7.46
Loans 6.52 5.46
Securities 1.70 1.64
Gross federal funds sold and reverse RPs .28 .17
Other .15 .08
Gross interest expense 4.68 3.17
Deposits 4.02 2.75
Gross federal funds purchased and RPs .42 .25
Other .23 .17
Net interest income 3.96 4.20
Taxable equivalent 4.08 4.30
Loss provisioning(5) 1.07 .77
Noninterest income 1.65 1.69
Service charges on deposits .40 .44
Income from fiduciary activities .27 .28
Trading income .04 .02
Interest rate exposures n.a. n.a.
Foreign exchange exposures n.a. n.a.
Equity, commodity, and other exposures n.a. n.a.
Other .95 .95
Noninterest expense 3.77 3.88
Salaries, wages, and employee benefits 1.48 1.51
Expenses of premises and fixed assets .49 .49
Other 1.80 1.88
Net noninterest expense 2.12 2.18
Realized gains on investment account securities .09 .10
Income before taxes and extraordinary items .86 1.34
Taxes .29 .44
Extraordinary items -.07 (*)
Net income (return on assets) .49 .90
Cash dividends declared .33 .48
Retained income .16 .42
MEMO: Return on equity 6.91 12.01
Item 1993 1994
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 89.54 90.09
Loans and leases, net 57.93 59.75
Commercial and industrial 12.19 12.07
U.S. addressees 12.03 11.91
Foreign addressees .16 .16
Consumer 14.82 15.84
Credit card 5.63 6.05
Installment and other 9.19 9.79
Real estate 28.61 29.42
In domestic offices 28.58 29.39
Construction and land development 2.26 2.08
Farmland .34 .36
One- to four-family residential 15.16 16.25
Home equity 2.51 2.33
Other 12.66 13.92
Multifamily residential 1.07 1.13
Nonfarm nonresidential 9.75 9.57
In foreign offices .02 .03
Depository institutions .43 .40
Foreign governments .03 .02
Agricultural production .56 .62
Other loans 2.16 2.00
Lease-financing receivables .77 .83
LESS: Unearned income on loans -.21 -.15
LESS: Loss reserves(1) -1.44 -1.30
Securities 25.92 25.72
Investment account 25.63 25.40
Debt 25.16 24.96
U.S. Treasury 8.63 8.26
U.S. government agency and
corporation obligations 12.32 12.67
Government-backed mortgage pools 4.96 5.57
Collateralized mortgage obligations 4.82 4.39
Other 2.54 2.72
State and local government 2.26 2.29
Private mortgage-backed securities .84 .75
Other 1.10 .99
Equity .48 .44
Trading account .28 .31
Gross federal funds sold and reverse RPs 4.49 3.64
Interest-bearing balances at depositories 1.20 .98
Non-interest-earning assets 10.46 9.91
Revaluation gains on off-balance-sheet items(2) n.a. .02
Other 10.46 9.89
Liabilities 91.85 91.62
Interest-bearing liabilities 74.42 74.77
Deposits 63.05 60.38
In foreign offices 1.43 1.69
In domestic offices 61.62 58.69
Other checkable deposits 9.94 9.70
Savings (including MMDAs) 24.06 22.92
Small-denomination time deposits 20.78 19.29
Large-denomination time deposits 6.84 6.78
Gross federal funds purchased and RPs 7.43 8.45
Other 3.94 5.94
Non-interest-bearing liabilities 17.43 16.85
Demand deposits in domestic offices 15.07 14.58
Revaluation losses on off-balance-sheet items(2) n.a. .02
Other 2.36 2.26
Capital account 8.15 8.38
MEMO
Commercial real estate loans 13.37 13.05
Other real estate owned .57 .28
Managed liabilities 19.68 22.89
Average net consolidated assets
(billions of dollars) 978 1,031
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 7.43 7.58
Taxable equivalent 7.55 7.68
Loans and leases, gross 8.57 8.64
Net of loss provisions 7.77 8.11
Securities 5.78 5.69
Taxable equivalent 6.10 5.93
Investment account 5.79 5.69
U.S. government and other debt 5.76 5.68
State and local 6.29 5.92
Equity 4.94 5.29
Trading account 4.74 5.29
Gross federal funds sold and reverse RPs 3.02 4.05
Interest-bearing balances at depositories 3.52 4.28
Rates paid
Interest-bearing liabilities 3.33 3.57
Interest-bearing deposits 3.26 3.31
In foreign offices 3.35 4.31
In domestic offices 3.26 3.28
Other checkable deposits 2.02 1.86
Savings (including MMDAs) 2.58 2.64
Large-denomination time deposits(4) 3.90 4.23
Small-denomination time deposits(4) 4.40 4.40
Gross federal funds purchased and RPs 2.95 4.12
Other interest-bearing liabilities 4.44 4.93
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 6.74 6.90
Taxable equivalent 6.84 6.99
Loans 5.06 5.26
Securities 1.48 1.45
Gross federal funds sold and reverse RPs .14 .14
Other .06 .06
Gross interest expense 2.46 2.65
Deposits 2.07 2.01
Gross federal funds purchased and RPs .22 .35
Other .17 .29
Net interest income 4.28 4.25
Taxable equivalent 4.37 4.34
Loss provisioning(5) .47 .32
Noninterest income 1.84 1.86
Service charges on deposits .45 .42
Income from fiduciary activities .29 .28
Trading income .03 .02
Interest rate exposures n.a. n.a.
Foreign exchange exposures n.a. n.a.
Equity, commodity, and other exposures n.a. n.a.
Other 1.08 1.14
Noninterest expense 3.92 3.78
Salaries, wages, and employee benefits 1.51 1.49
Expenses of premises and fixed assets .48 .46
Other 1.92 1.83
Net noninterest expense 2.08 1.92
Realized gains on investment account securities .06 -.05
Income before taxes and extraordinary items 1.78 1.96
Taxes .61 .67
Extraordinary items .04 (*)
Net income (return on assets) 1.21 1.29
Cash dividends declared .79 .81
Retained income .43 .48
MEMO: Return on equity 14.91 15.40
Item 1995 1996
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 90.12 90.13
Loans and leases, net 62.19 62.63
Commercial and industrial 12.70 12.80
U.S. addressees 12.54 12.61
Foreign addressees .16 .18
Consumer 16.27 15.88
Credit card 6.32 6.66
Installment and other 9.95 9.22
Real estate 30.81 31.36
In domestic offices 30.79 31.34
Construction and land development 2.21 2.38
Farmland .40 .46
One- to four-family residential 17.49 17.34
Home equity 2.36 2.30
Other 15.13 15.03
Multifamily residential 1.21 1.29
Nonfarm nonresidential 9.48 9.87
In foreign offices .02 .02
Depository institutions .35 .48
Foreign governments .02 .02
Agricultural production .69 .71
Other loans 1.80 1.70
Lease-financing receivables .90 1.01
LESS: Unearned income on loans -.12 -.10
LESS: Loss reserves(1) -1.22 -1.22
Securities 23.08 22.67
Investment account 22.88 22.55
Debt 22.42 22.03
U.S. Treasury 6.48 5.61
U.S. government agency and
corporation obligations 12.23 12.66
Government-backed mortgage pools 5.42 5.69
Collateralized mortgage obligations 3.56 3.12
Other 3.25 3.85
State and local government 2.13 2.24
Private mortgage-backed securities .68 .76
Other .89 .77
Equity .47 .52
Trading account .20 .12
Gross federal funds sold and reverse RPs 3.92 3.87
Interest-bearing balances at depositories .93 .96
Non-interest-earning assets 9.88 9.87
Revaluation gains on off-balance-sheet items(2) .05 .02
Other 9.83 9.84
Liabilities 91.36 91.06
Interest-bearing liabilities 75.00 75.06
Deposits 59.67 59.99
In foreign offices 1.71 1.33
In domestic offices 57.96 58.66
Other checkable deposits 8.54 6.20
Savings (including MMDAs) 20.75 22.50
Small-denomination time deposits 21.11 21.61
Large-denomination time deposits 7.56 8.34
Gross federal funds purchased and RPs 8.31 8.19
Other 7.02 6.88
Non-interest-bearing liabilities 16.36 16.00
Demand deposits in domestic offices 14.07 13.84
Revaluation losses on off-balance-sheet items(2) .05 .02
Other 2.24 2.14
Capital account 8.64 8.94
MEMO
Commercial real estate loans 13.19 13.83
Other real estate owned .17 .13
Managed liabilities 24.62 24.78
Average net consolidated assets
(billions of dollars) 1,092 1,076
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 8.44 8.41
Taxable equivalent 8.53 8.50
Loans and leases, gross 9.45 9.39
Net of loss provisions 8.77 8.60
Securities 6.23 6.32
Taxable equivalent 6.50 6.60
Investment account 6.24 6.32
U.S. government and other debt 6.29 6.41
State and local 5.81 5.51
Equity 6.06 6.29
Trading account 5.55 5.94
Gross federal funds sold and reverse RPs 5.45 5.29
Interest-bearing balances at depositories 6.09 5.72
Rates paid
Interest-bearing liabilities 4.65 4.58
Interest-bearing deposits 4.26 4.27
In foreign offices 5.94 5.72
In domestic offices 4.21 4.24
Other checkable deposits 2.02 1.97
Savings (including MMDAs) 3.24 3.11
Large-denomination time deposits(4) 5.62 5.48
Small-denomination time deposits(4) 5.53 5.57
Gross federal funds purchased and RPs 5.61 516
Other interest-bearing liabilities 6.32 5.89
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 7.69 7.68
Taxable equivalent 7.78 7.76
Loans 5.99 5.99
Securities 1.43 1.42
Gross federal funds sold and reverse RPs .21 .20
Other .07 .06
Gross interest expense 3.46 3.41
Deposits 2.56 2.58
Gross federal funds purchased and RPs .46 .43
Other .44 .40
Net interest income 4.24 4.28
Taxable equivalent 4.32 4.35
Loss provisioning(5) .43 .50
Noninterest income 1.84 1.88
Service charges on deposits .42 .41
Income from fiduciary activities .27 .29
Trading income .03 .02
Interest rate exposures n.a. .01
Foreign exchange exposures n.a. .01
Equity, commodity, and other exposures n.a. (*)
Other 1.12 1.16
Noninterest expense 3.68 3.69
Salaries, wages, and employee benefits 1.44 1.44
Expenses of premises and fixed assets .45 .45
Other 1.79 1.80
Net noninterest expense 1.84 1.81
Realized gains on investment account securities -.01 .02
Income before taxes and extraordinary items 1.96 1.98
Taxes .67 .69
Extraordinary items (*) (*)
Net income (return on assets) 1.28 1.29
Cash dividends declared .87 1.04
Retained income .41 .25
MEMO: Return on equity 14.82 14.47
Item 1997 1998
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 90.30 90.39
Loans and leases, net 62.22 61.13
Commercial and industrial 12.43 12.48
U.S. addressees 12.19 12.16
Foreign addressees .23 .32
Consumer 14.03 12.28
Credit card 5.52 4.48
Installment and other 8.52 7.80
Real estate 33.23 33.94
In domestic offices 33.21 33.92
Construction and land development 2.69 2.88
Farmland .53 .56
One- to four-family residential 18.14 18.19
Home equity 2.30 2.15
Other 15.84 16.05
Multifamily residential 1.29 1.26
Nonfarm nonresidential 10.56 11.03
In foreign offices .02 .02
Depository institutions .57 .50
Foreign governments .02 .03
Agricultural production .74 .80
Other loans 1.50 1.33
Lease-financing receivables .99 .99
LESS: Unearned income on loans -.10 -.09
LESS: Loss reserves(1) -1.18 -1.13
Securities 23.45 24.26
Investment account 23.35 24.15
Debt 22.74 23.46
U.S. Treasury 4.96 3.92
U.S. government agency and
corporation obligations 13.97 15.13
Government-backed mortgage pools 6.22 6.46
Collateralized mortgage obligations 3.01 3.22
Other 4.73 5.44
State and local government 2.44 2.70
Private mortgage-backed securities .59 .65
Other .78 1.06
Equity .61 .69
Trading account .10 .11
Gross federal funds sold and reverse RPs 3.60 4.17
Interest-bearing balances at depositories 1.03 .83
Non-interest-earning assets 9.70 9.61
Revaluation gains on off-balance-sheet items(2) (*) (*)
Other 9.69 9.61
Liabilities 90.78 90.55
Interest-bearing liabilities 75.19 75.43
Deposits 61.47 62.40
In foreign offices 1.23 1.31
In domestic offices 60.25 61.09
Other checkable deposits 4.96 4.23
Savings (including MMDAs) 23.59 25.65
Small-denomination time deposits 22.03 21.22
Large-denomination time deposits 9.66 9.99
Gross federal funds purchased and RPs 7.09 6.16
Other 6.62 6.86
Non-interest-bearing liabilities 15.60 15.12
Demand deposits in domestic offices 13.15 11.90
Revaluation losses on off-balance-sheet items(2) .01 .01
Other 2.44 3.21
Capital account 9.22 9.45
MEMO
Commercial real estate loans 14.77 15.38
Other real estate owned .11 .09
Managed liabilities 24.66 24.46
Average net consolidated assets
(billions of dollars) 968 935
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 8.50 8.32
Taxable equivalent 8.59 8.44
Loans and leases, gross 9.48 9.37
Net of loss provisions 8.60 8.61
Securities 6.42 6.22
Taxable equivalent 6.69 6.57
Investment account 6.42 6.21
U.S. government and other debt 6.55 6.35
State and local 5.35 5.14
Equity 6.35 6.34
Trading account 6.37 6.84
Gross federal funds sold and reverse RPs 5.42 5.31
Interest-bearing balances at depositories 5.49 5.77
Rates paid
Interest-bearing liabilities 4.66 4.60
Interest-bearing deposits 4.34 4.28
In foreign offices 5.42 5.55
In domestic offices 4.32 4.25
Other checkable deposits 2.16 2.15
Savings (including MMDAs) 3.08 2.97
Large-denomination time deposits(4) 5.56 5.50
Small-denomination time deposits(4) 5.57 5.64
Gross federal funds purchased and RPs 5.21 5.14
Other interest-bearing liabilities 6.09 6.00
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 7.75 7.63
Taxable equivalent 7.83 7.71
Loans 6.00 5.85
Securities 1.50 1.50
Gross federal funds sold and reverse RPs .19 .22
Other .06 .06
Gross interest expense 3.47 3.44
Deposits 2.70 2.71
Gross federal funds purchased and RPs .37 .32
Other .40 .41
Net interest income 4.28 4.19
Taxable equivalent 4.36 4.27
Loss provisioning(5) .56 .48
Noninterest income 2.08 2.25
Service charges on deposits .40 .39
Income from fiduciary activities .32 .37
Trading income .01 .02
Interest rate exposures .01 .01
Foreign exchange exposures (*) (*)
Equity, commodity, and other exposures (*) (*)
Other 1.34 1.48
Noninterest expense 3.73 3.86
Salaries, wages, and employee benefits 1.50 1.57
Expenses of premises and fixed assets .46 .47
Other 1.76 1.83
Net noninterest expense 1.65 1.61
Realized gains on investment account securities .02 .04
Income before taxes and extraordinary items 2.10 2.14
Taxes .73 .73
Extraordinary items (*) .06
Net income (return on assets) 1.37 1.47
Cash dividends declared 1.09 1.01
Retained income .28 .45
MEMO: Return on equity 14.90 15.53
Item 1999 2000
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 90.75 90.54
Loans and leases, net 61.49 62.14
Commercial and industrial 12.64 12.97
U.S. addressees 12.32 12.61
Foreign addressees .32 .36
Consumer 10.79 10.19
Credit card 3.37 3.26
Installment and other 7.42 6.92
Real estate 35.89 36.91
In domestic offices 35.87 36.89
Construction and land development 3.48 4.16
Farmland .58 .65
One- to four-family residential 18.25 17.14
Home equity 1.99 2.10
Other 16.26 15.04
Multifamily residential 1.43 1.57
Nonfarm nonresidential 12.12 13.36
In foreign offices .02 .02
Depository institutions .44 .36
Foreign governments .03 .03
Agricultural production .78 .82
Other loans 1.27 1.24
Lease-financing receivables .78 .75
LESS: Unearned income on loans -.08 -.08
LESS: Loss reserves(1) -1.06 -1.04
Securities 25.16 24.32
Investment account 25.09 24.24
Debt 24.32 23.44
U.S. Treasury 2.53 1.81
U.S. government agency and
corporation obligations 16.29 15.56
Government-backed mortgage pools 6.72 6.22
Collateralized mortgage obligations 3.52 3.03
Other 6.05 6.31
State and local government 2.91 2.91
Private mortgage-backed securities 1.00 .99
Other 1.60 2.18
Equity .77 .79
Trading account .08 .09
Gross federal funds sold and reverse RPs 3.35 3.41
Interest-bearing balances at depositories .75 .67
Non-interest-earning assets 9.25 9.46
Revaluation gains on off-balance-sheet items(2) .01 .02
Other 9.24 9.44
Liabilities 90.90 90.95
Interest-bearing liabilities 76.76 77.42
Deposits 61.94 62.68
In foreign offices 1.20 1.28
In domestic offices 60.74 61.41
Other checkable deposits 3.75 3.33
Savings (including MMDAs) 27.35 27.02
Small-denomination time deposits 19.60 19.44
Large-denomination time deposits 10.04 11.62
Gross federal funds purchased and RPs 6.90 6.32
Other 7.92 8.42
Non-interest-bearing liabilities 14.14 13.53
Demand deposits in domestic offices 10.19 8.98
Revaluation losses on off-balance-sheet items(2) .01 (*)
Other 3.95 4.54
Capital account 9.10 9.05
MEMO
Commercial real estate loans 17.28 19.32
Other real estate owned .08 .07
Managed liabilities 26.32 28.00
Average net consolidated assets
(billions of dollars) 972 986
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 7.84 8.51
Taxable equivalent 7.93 8.57
Loans and leases, gross 8.75 9.43
Net of loss provisions 8.13 8.59
Securities 6.02 6.50
Taxable equivalent 6.29 6.71
Investment account 6.01 6.50
U.S. government and other debt 6.15 6.68
State and local 4.98 5.10
Equity 5.98 6.81
Trading account 7.33 9.30
Gross federal funds sold and reverse RPs 4.98 6.15
Interest-bearing balances at depositories 5.06 5.78
Rates paid
Interest-bearing liabilities 4.19 4.93
Interest-bearing deposits 3.84 4.46
In foreign offices 5.07 6.13
In domestic offices 3.82 4.43
Other checkable deposits 1.99 2.27
Savings (including MMDAs) 2.65 3.07
Large-denomination time deposits(4) 5.17 6.01
Small-denomination time deposits(4) 5.11 5.74
Gross federal funds purchased and RPs 4.83 5.94
Other interest-bearing liabilities 5.36 6.39
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 7.19 7.79
Taxable equivalent 7.27 7.87
Loans 5.48 5.97
Securities 1.51 1.57
Gross federal funds sold and reverse RPs .17 .21
Other .04 .04
Gross interest expense 3.20 3.79
Deposits 2.44 2.88
Gross federal funds purchased and RPs .34 .38
Other .42 .53
Net interest income 3.99 4.01
Taxable equivalent 4.07 4.08
Loss provisioning(5) .39 .53
Noninterest income 2.31 2.36
Service charges on deposits .38 .36
Income from fiduciary activities .38 .44
Trading income .02 .01
Interest rate exposures .01 .01
Foreign exchange exposures (*) (*)
Equity, commodity, and other exposures (*) (*)
Other 1.53 1.55
Noninterest expense 3.70 3.84
Salaries, wages, and employee benefits 1.56 1.58
Expenses of premises and fixed assets .47 .47
Other 1.68 1.79
Net noninterest expense 1.39 1.48
Realized gains on investment account securities -.01 -.04
Income before taxes and extraordinary items 2.20 1.96
Taxes .75 .68
Extraordinary items .01 (*)
Net income (return on assets) 1.47 1.29
Cash dividends declared 1.06 .91
Retained income .41 .37
MEMO: Return on equity 16.16 14.19
E. Banks not ranked among the 1,000 largest by assets
Item 1991 1992
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 91.26 91.39
Loans and leases, net 54.05 53.03
Commercial and industrial 10.60 9.74
U.S. addressees 10.56 9.69
Foreign addressees .04 .04
Consumer 10.44 9.68
Credit card 1.02 1.00
Installment and other 9.43 8.68
Real estate 29.34 30.16
In domestic offices 29.33 30.15
Construction and land development 2.18 1.97
Farmland 1.93 2.06
One- to four-family residential 16.01 16.44
Home equity 1.29 1.34
Other 14.72 15.10
Multifamily residential .71 .77
Nonfarm nonresidential 8.50 8.91
In foreign offices (*) (*)
Depository institutions .20 .13
Foreign governments .01 .01
Agricultural production 3.48 3.55
Other loans 1.24 .99
Lease-financing receivables .18 .17
LESS: Unearned income on loans -.51 -.43
LESS: Loss reserves(1) -.93 -.96
Securities 30.00 32.10
Investment account 29.95 32.04
Debt 29.57 31.60
U.S. Treasury 9.24 10.25
U.S. government agency and
corporation obligations 13.83 15.03
Government-backed mortgage pools 5.59 5.52
Collateralized mortgage obligations 1.56 2.66
Other 6.68 6.85
State and local government 4.27 4.29
Private mortgage-backed securities .89 .77
Other 1.34 1.26
Equity .38 .44
Trading account .06 .05
Gross federal funds sold and reverse RPs 5.64 5.10
Interest-bearing balances at depositories 1.57 1.16
Non-interest-earning assets 8.74 8.61
Revaluation gains on off-balance-sheet items(2) n.a. n.a.
Other 8.74 8.61
Liabilities 91.37 91.07
Interest-bearing liabilities 78.39 77.83
Deposits 76.41 75.75
In foreign offices .08 .07
In domestic offices 76.34 75.68
Other checkable deposits 11.00 12.33
Savings (including MMDAs) 19.34 22.10
Small-denomination time deposits 35.88 32.85
Large-denomination time deposits 10.12 8.40
Gross federal funds purchased and RPs 1.31 1.36
Other .67 .72
Non-interest-bearing liabilities 12.97 13.24
Demand deposits in domestic offices 11.83 12.23
Revaluation losses on off-balance-sheet items(2) n.a. n.a.
Other 1.14 1.01
Capital account 8.64 8.93
MEMO
Commercial real estate loans 11.73 11.85
Other real estate owned .66 .65
Managed liabilities 12.18 10.56
Average net consolidated assets
(billions of dollars) 694 697
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 9.63 8.42
Taxable equivalent 9.81 8.58
Loans and leases, gross 11.01 9.81
Net of loss provisions 10.07 9.05
Securities 8.04 6.99
Taxable equivalent 8.53 7.40
Investment account 8.04 6.99
U.S. government and other debt 8.20 7.06
State and local 7.17 6.70
Equity 7.13 5.67
Trading account 8.41 7.12
Gross federal funds sold and reverse RPs 5.66 3.50
Interest-bearing balances at depositories 7.35 5.59
Rates paid
Interest-bearing liabilities 6.17 4.43
Interest-bearing deposits 6.15 4.43
In foreign offices 5.95 3.97
In domestic offices 6.15 4.43
Other checkable deposits 4.61 3.13
Savings (including MMDAs) 5.17 3.61
Large-denomination time deposits(4) 6.72 4.88
Small-denomination time deposits(4) 6.97 5.35
Gross federal funds purchased and RPs 5.71 3.72
Other interest-bearing liabilities 6.96 5.00
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 8.91 7.78
Taxable equivalent 9.07 7.93
Loans 6.04 5.29
Securities 2.41 2.24
Gross federal funds sold and reverse RPs .34 .18
Other .12 .07
Gross interest expense 4.82 3.45
Deposits 4.70 3.36
Gross federal funds purchased and RPs .07 .05
Other .05 .04
Net interest income 4.09 4.34
Taxable equivalent 4.24 4.48
Loss provisioning(5) .51 .41
Noninterest income 1.07 1.16
Service charges on deposits .44 .45
Income from fiduciary activities .14 .16
Trading income .01 .01
Interest rate exposures n.a. n.a.
Foreign exchange exposures n.a. n.a.
Equity, commodity, and other exposures n.a. n.a.
Other .49 .55
Noninterest expense 3.60 3.66
Salaries, wages, and employee benefits 1.64 1.69
Expenses of premises and fixed assets .49 .49
Other 1.46 1.49
Net noninterest expense 2.53 2.51
Realized gains on investment account securities .06 .09
Income before taxes and extraordinary items 1.11 1.51
Taxes .35 .47
Extraordinary items .19 .02
Net income (return on assets) .96 1.05
Cash dividends declared .89 .51
Retained income .07 .54
MEMO: Return on equity 11.06 11.78
Item 1993 1994
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 91.67 91.72
Loans and leases, net 52.95 54.64
Commercial and industrial 9.24 9.31
U.S. addressees 9.20 9.26
Foreign addressees .04 .05
Consumer 9.18 9.38
Credit card .92 .96
Installment and other 8.26 8.42
Real estate 31.10 32.19
In domestic offices 31.09 32.19
Construction and land development 1.93 2.14
Farmland 2.20 2.34
One- to four-family residential 16.82 16.94
Home equity 1.27 1.21
Other 15.56 15.73
Multifamily residential .84 .93
Nonfarm nonresidential 9.30 9.83
In foreign offices (*) (*)
Depository institutions .12 .13
Foreign governments .02 .01
Agricultural production 3.58 3.89
Other loans .86 .81
Lease-financing receivables .18 .20
LESS: Unearned income on loans -.36 -.31
LESS: Loss reserves(1) -.97 -.95
Securities 33.08 32.90
Investment account 33.01 32.86
Debt 32.57 32.41
U.S. Treasury 10.49 10.81
U.S. government agency and
corporation obligations 15.80 15.35
Government-backed mortgage pools 5.39 4.81
Collateralized mortgage obligations 3.33 3.11
Other 7.09 7.43
State and local government 4.70 5.01
Private mortgage-backed securities .47 .27
Other 1.10 .97
Equity .45 .44
Trading account .07 .04
Gross federal funds sold and reverse RPs 4.67 3.42
Interest-bearing balances at depositories .97 .76
Non-interest-earning assets 8.33 8.28
Revaluation gains on off-balance-sheet items(2) n.a. (*)
Other 8.33 8.28
Liabilities 90.63 90.43
Interest-bearing liabilities 76.88 76.19
Deposits 74.54 73.14
In foreign offices .08 .09
In domestic offices 74.45 73.05
Other checkable deposits 13.16 13.31
Savings (including MMDAs) 23.55 23.23
Small-denomination time deposits 30.09 28.83
Large-denomination time deposits 7.66 7.68
Gross federal funds purchased and RPs 1.44 1.89
Other .90 1.16
Non-interest-bearing liabilities 13.74 14.24
Demand deposits in domestic offices 12.82 13.34
Revaluation losses on off-balance-sheet items(2) n.a. (*)
Other .93 .90
Capital account 9.37 9.57
MEMO
Commercial real estate loans 12.21 13.02
Other real estate owned .52 .35
Managed liabilities 10.09 10.83
Average net consolidated assets
(billions of dollars) 687 679
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 7.62 7.57
Taxable equivalent 7.78 7.72
Loans and leases, gross 9.13 9.00
Net of loss provisions 8.62 8.65
Securities 5.93 5.61
Taxable equivalent 6.33 5.99
Investment account 5.93 5.61
U.S. government and other debt 5.92 5.60
State and local 6.09 5.69
Equity 5.18 5.52
Trading account 4.83 6.03
Gross federal funds sold and reverse RPs 2.95 4.08
Interest-bearing balances at depositories 4.53 4.64
Rates paid
Interest-bearing liabilities 3.54 3.49
Interest-bearing deposits 3.53 3.44
In foreign offices 2.91 3.92
In domestic offices 3.53 3.44
Other checkable deposits 2.42 2.29
Savings (including MMDAs) 2.91 2.83
Large-denomination time deposits(4) 3.96 4.12
Small-denomination time deposits(4) 4.39 4.28
Gross federal funds purchased and RPs 3.17 4.12
Other interest-bearing liabilities 4.68 4.98
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 7.06 7.01
Taxable equivalent 7.20 7.15
Loans 4.92 4.99
Securities 1.96 1.84
Gross federal funds sold and reverse RPs .14 .15
Other .05 .04
Gross interest expense 2.72 2.65
Deposits 2.64 2.52
Gross federal funds purchased and RPs .04 .07
Other .04 .06
Net interest income 4.34 4.36
Taxable equivalent 4.48 4.50
Loss provisioning(5) .27 .19
Noninterest income 1.25 1.30
Service charges on deposits .45 .44
Income from fiduciary activities .16 .17
Trading income .01 (*)
Interest rate exposures n.a. n.a.
Foreign exchange exposures n.a. n.a.
Equity, commodity, and other exposures n.a. n.a.
Other .64 .69
Noninterest expense 3.74 3.78
Salaries, wages, and employee benefits 1.73 1.75
Expenses of premises and fixed assets .49 .49
Other 1.53 1.55
Net noninterest expense 2.49 2.48
Realized gains on investment account securities .07 -.03
Income before taxes and extraordinary items 1.65 1.66
Taxes .51 .51
Extraordinary items .05 (*)
Net income (return on assets) 1.19 1.15
Cash dividends declared .56 .57
Retained income .63 .58
MEMO: Return on equity 12.67 12.03
Item 1995 1996
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 91.70 91.64
Loans and leases, net 56.61 57.38
Commercial and industrial 9.65 9.97
U.S. addressees 9.59 9.90
Foreign addressees .06 .07
Consumer 9.54 9.42
Credit card 1.01 1.03
Installment and other 8.53 8.38
Real estate 33.55 34.11
In domestic offices 33.55 34.10
Construction and land development 2.39 2.61
Farmland 2.48 2.55
One- to four-family residential 17.45 17.48
Home equity 1.20 1.20
Other 16.26 16.28
Multifamily residential .95 .92
Nonfarm nonresidential 10.28 10.54
In foreign offices (*) (*)
Depository institutions .16 .17
Foreign governments (*) (*)
Agricultural production 3.95 3.93
Other loans .76 .72
Lease-financing receivables .22 .23
LESS: Unearned income on loans -.30 -.27
LESS: Loss reserves(1) -.93 -.90
Securities 30.51 29.53
Investment account 30.48 29.50
Debt 30.03 29.01
U.S. Treasury 9.19 7.85
U.S. government agency and
corporation obligations 15.13 15.67
Government-backed mortgage pools 4.19 4.21
Collateralized mortgage obligations 2.76 2.46
Other 8.18 9.00
State and local government 4.69 4.62
Private mortgage-backed securities .20 .18
Other .81 .68
Equity .45 .49
Trading account .03 .03
Gross federal funds sold and reverse RPs 3.91 4.04
Interest-bearing balances at depositories .67 .69
Non-interest-earning assets 8.30 8.36
Revaluation gains on off-balance-sheet items(2) (*) (*)
Other 8.30 8.36
Liabilities 90.04 89.81
Interest-bearing liabilities 75.74 75.59
Deposits 72.70 72.47
In foreign offices .11 .10
In domestic offices 72.59 72.37
Other checkable deposits 12.37 11.75
Savings (including MMDAs) 20.41 19.57
Small-denomination time deposits 30.92 31.29
Large-denomination time deposits 8.89 9.77
Gross federal funds purchased and RPs 1.78 1.70
Other 1.25 1.41
Non-interest-bearing liabilities 14.30 14.23
Demand deposits in domestic offices 13.23 13.12
Revaluation losses on off-balance-sheet items(2) (*) (*)
Other 1.07 1.10
Capital account 9.97 10.19
MEMO
Commercial real estate loans 13.72 14.18
Other real estate owned .25 .20
Managed liabilities 12.05 12.99
Average net consolidated assets
(billions of dollars) 666 661
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 8.38 8.33
Taxable equivalent 8.53 8.48
Loans and leases, gross 9.80 9.72
Net of loss provisions 9.39 9.29
Securities 6.09 6.09
Taxable equivalent 6.49 6.51
Investment account 6.09 6.09
U.S. government and other debt 6.17 6.22
State and local 5.64 5.44
Equity 6.26 6.05
Trading account 6.12 6.48
Gross federal funds sold and reverse RPs 5.95 5.32
Interest-bearing balances at depositories 5.91 5.68
Rates paid
Interest-bearing liabilities 4.46 4.48
Interest-bearing deposits 4.39 4.43
In foreign offices 5.73 5.34
In domestic offices 4.39 4.43
Other checkable deposits 2.50 2.41
Savings (including MMDAs) 3.32 3.24
Large-denomination time deposits(4) 5.55 5.48
Small-denomination time deposits(4) 5.51 5.59
Gross federal funds purchased and RPs 5.61 5.08
Other interest-bearing liabilities 6.46 5.78
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 7.78 7.74
Taxable equivalent 7.91 7.86
Loans 5.63 5.66
Securities 1.86 1.80
Gross federal funds sold and reverse RPs .25 .24
Other .04 .04
Gross interest expense 3.37 3.38
Deposits 3.19 3.21
Gross federal funds purchased and RPs .10 .08
Other .08 .08
Net interest income 4.41 4.36
Taxable equivalent 4.54 4.49
Loss provisioning(5) .24 .25
Noninterest income 1.38 1.42
Service charges on deposits .44 .44
Income from fiduciary activities .22 .19
Trading income .01 (*)
Interest rate exposures n.a. (*)
Foreign exchange exposures n.a. (*)
Equity, commodity, and other exposures n.a. (*)
Other .71 .78
Noninterest expense 3.80 3.69
Salaries, wages, and employee benefits 1.79 1.77
Expenses of premises and fixed assets .50 .49
Other 1.51 1.44
Net noninterest expense 2.42 2.28
Realized gains on investment account securities (*) .01
Income before taxes and extraordinary items 1.75 1.84
Taxes .55 .59
Extraordinary items (*) (*)
Net income (return on assets) 1.20 1.25
Cash dividends declared .62 .64
Retained income .58 .62
MEMO: Return on equity 12.06 12.31
Item 1997 1998
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 91.66 91.89
Loans and leases, net 58.75 59.11
Commercial and industrial 10.16 10.33
U.S. addressees 10.08 10.25
Foreign addressees .08 .08
Consumer 8.98 8.46
Credit card .85 .70
Installment and other 8.14 7.76
Real estate 35.55 36.04
In domestic offices 35.55 36.04
Construction and land development 2.82 3.02
Farmland 2.69 2.83
One- to four-family residential 18.16 18.04
Home equity 1.24 1.21
Other 16.92 16.83
Multifamily residential .95 .93
Nonfarm nonresidential 10.92 11.21
In foreign offices (*) (*)
Depository institutions .17 .12
Foreign governments (*) (*)
Agricultural production 4.05 4.28
Other loans .70 .69
Lease-financing receivables .25 .24
LESS: Unearned income on loans -.24 -.20
LESS: Loss reserves(1) -.87 -.86
Securities 28.24 26.70
Investment account 28.21 26.66
Debt 27.69 26.12
U.S. Treasury 6.70 5.05
U.S. government agency and
corporation obligations 15.58 15.43
Government-backed mortgage pools 4.01 3.90
Collateralized mortgage obligations 2.19 2.02
Other 9.38 9.51
State and local government 4.60 4.80
Private mortgage-backed securities .19 .16
Other .61 .68
Equity .52 .54
Trading account .03 .03
Gross federal funds sold and reverse RPs 3.95 5.13
Interest-bearing balances at depositories .71 .96
Non-interest-earning assets 8.34 8.11
Revaluation gains on off-balance-sheet items(2) (*) (*)
Other 8.34 8.11
Liabilities 89.63 89.54
Interest-bearing liabilities 75.47 75.35
Deposits 72.05 71.77
In foreign offices .09 .07
In domestic offices 71.96 71.70
Other checkable deposits 11.39 11.18
Savings (including MMDAs) 18.98 19.01
Small-denomination time deposits 31.09 30.42
Large-denomination time deposits 10.50 11.10
Gross federal funds purchased and RPs 1.67 1.49
Other 1.74 2.08
Non-interest-bearing liabilities 14.16 14.19
Demand deposits in domestic offices 13.10 13.09
Revaluation losses on off-balance-sheet items(2) (*) (*)
Other 1.06 1.10
Capital account 10.37 10.46
MEMO
Commercial real estate loans 14.80 15.26
Other real estate owned .16 .13
Managed liabilities 14.02 14.76
Average net consolidated assets
(billions of dollars) 647 644
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 8.50 8.33
Taxable equivalent 8.63 8.49
Loans and leases, gross 9.80 9.69
Net of loss provisions 9.35 9.21
Securities 6.25 5.98
Taxable equivalent 6.65 6.46
Investment account 6.25 5.98
U.S. government and other debt 6.43 6.17
State and local 5.33 5.15
Equity 6.40 6.12
Trading account 6.60 6.01
Gross federal funds sold and reverse RPs 5.51 5.35
Interest-bearing balances at depositories 5.69 5.66
Rates paid
Interest-bearing liabilities 4.61 4.60
Interest-bearing deposits 4.54 4.53
In foreign offices 4.77 5.08
In domestic offices 4.53 4.53
Other checkable deposits 2.46 2.45
Savings (including MMDAs) 3.36 3.39
Large-denomination time deposits(4) 5.53 5.53
Small-denomination time deposits(4) 5.66 5.63
Gross federal funds purchased and RPs 5.23 4.99
Other interest-bearing liabilities 6.32 6.45
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 7.90 7.75
Taxable equivalent 8.02 7.87
Loans 5.86 5.80
Securities 1.76 1.59
Gross federal funds sold and reverse RPs .24 .29
Other .04 .06
Gross interest expense 3.48 3.46
Deposits 3.28 3.25
Gross federal funds purchased and RPs .08 .07
Other .11 .13
Net interest income 4.42 4.29
Taxable equivalent 4.54 4.41
Loss provisioning(5) .27 .29
Noninterest income 1.44 1.52
Service charges on deposits .44 .42
Income from fiduciary activities .20 .23
Trading income (*) (*)
Interest rate exposures (*) (*)
Foreign exchange exposures (*) (*)
Equity, commodity, and other exposures (*) (*)
Other .79 .86
Noninterest expense 3.71 3.75
Salaries, wages, and employee benefits 1.80 1.82
Expenses of premises and fixed assets .49 .49
Other 1.41 1.43
Net noninterest expense 2.27 2.23
Realized gains on investment account securities .01 .02
Income before taxes and extraordinary items 1.89 1.79
Taxes .59 .53
Extraordinary items (*) (*)
Net income (return on assets) 1.30 1.26
Cash dividends declared .73 .82
Retained income .57 .44
MEMO: Return on equity 12.57 12.02
Item 1999 2000
Balance sheet
items as a
percentage of
average net
consolidated
assets
Interest-earning assets 91.84 91.77
Loans and leases, net 59.75 62.31
Commercial and industrial 10.64 11.09
U.S. addressees 10.56 11.02
Foreign addressees .08 .07
Consumer 8.15 7.97
Credit card .68 .58
Installment and other 7.47 7.39
Real estate 36.84 39.29
In domestic offices 36.83 39.29
Construction and land development 3.28 3.70
Farmland 2.96 3.06
One- to four-family residential 17.65 18.43
Home equity 1.17 1.28
Other 16.48 17.15
Multifamily residential .98 1.04
Nonfarm nonresidential 11.97 13.06
In foreign offices (*) (*)
Depository institutions .13 .11
Foreign governments .01 .01
Agricultural production 4.06 3.85
Other loans .69 .69
Lease-financing receivables .26 .27
LESS: Unearned income on loans -.15 -.11
LESS: Loss reserves(1) -.87 -.88
Securities 26.92 25.41
Investment account 26.88 25.39
Debt 26.35 24.83
U.S. Treasury 3.34 2.12
U.S. government agency and
corporation obligations 16.89 16.95
Government-backed mortgage pools 3.95 3.47
Collateralized mortgage obligations 2.00 1.70
Other 10.94 11.79
State and local government 4.96 4.64
Private mortgage-backed securities .26 .23
Other .89 .88
Equity .53 .56
Trading account .03 .02
Gross federal funds sold and reverse RPs 4.17 3.22
Interest-bearing balances at depositories 1.00 .84
Non-interest-earning assets 8.16 8.23
Revaluation gains on off-balance-sheet items(2) (*) (*)
Other 8.16 8.23
Liabilities 89.75 89.89
Interest-bearing liabilities 75.89 76.05
Deposits 71.41 70.54
In foreign offices .07 .05
In domestic offices 71.34 70.49
Other checkable deposits 11.07 10.58
Savings (including MMDAs) 19.69 19.03
Small-denomination time deposits 29.07 28.42
Large-denomination time deposits 11.51 12.46
Gross federal funds purchased and RPs 1.79 2.06
Other 2.69 3.45
Non-interest-bearing liabilities 13.86 13.84
Demand deposits in domestic offices 12.81 12.65
Revaluation losses on off-balance-sheet items(2) (*) (*)
Other 1.05 1.19
Capital account 10.25 10.11
MEMO
Commercial real estate loans 16.34 17.91
Other real estate owned .11 .11
Managed liabilities 16.08 18.06
Average net consolidated assets
(billions of dollars) 651 654
Effective
interest rate
(percent)(3)
Rates earned
Interest-earning assets 8.05 8.49
Taxable equivalent 8.18 8.59
Loans and leases, gross 9.28 9.56
Net of loss provisions 8.76 9.02
Securities 5.89 6.21
Taxable equivalent 6.29 6.55
Investment account 5.89 6.21
U.S. government and other debt 6.08 6.45
State and local 5.04 5.11
Equity 6.16 6.71
Trading account 3.60 4.01
Gross federal funds sold and reverse RPs 4.96 6.26
Interest-bearing balances at depositories 5.71 6.39
Rates paid
Interest-bearing liabilities 4.28 4.80
Interest-bearing deposits 4.21 4.67
In foreign offices 4.34 5.14
In domestic offices 4.21 4.67
Other checkable deposits 2.28 2.46
Savings (including MMDAs) 3.20 3.56
Large-denomination time deposits(4) 5.21 5.92
Small-denomination time deposits(4) 5.24 5.70
Gross federal funds purchased and RPs 4.72 5.71
Other interest-bearing liabilities 5.63 6.24
Income and
expense as a
percentage of
average net
consolidated
assets
Gross interest income 7.48 7.86
Taxable equivalent 7.60 7.97
Loans 5.62 6.02
Securities 1.58 1.58
Gross federal funds sold and reverse RPs .22 .21
Other .06 .05
Gross interest expense 3.26 3.64
Deposits 3.02 3.31
Gross federal funds purchased and RPs .08 .12
Other .15 .21
Net interest income 4.22 4.22
Taxable equivalent 4.34 4.33
Loss provisioning(5) .31 .34
Noninterest income 1.44 1.32
Service charges on deposits .42 .43
Income from fiduciary activities .26 .21
Trading income (*) (*)
Interest rate exposures (*) (*)
Foreign exchange exposures (*) (*)
Equity, commodity, and other exposures (*) (*)
Other .75 .68
Noninterest expense 3.73 3.58
Salaries, wages, and employee benefits 1.82 1.78
Expenses of premises and fixed assets .49 .47
Other 1.42 1.33
Net noninterest expense 2.29 2.26
Realized gains on investment account securities (*) -.01
Income before taxes and extraordinary items 1.62 1.60
Taxes .47 .45
Extraordinary items (*) (*)
Net income (return on assets) 1.15 1.16
Cash dividends declared .68 .79
Retained income .48 .37
MEMO: Return on equity 11.27 11.44
(*) In absolute value, less than 0.005 percent.
n.a. Not available MMDA Money market deposit account. RP Repurchase
agreement. CD Certificate of deposit.
(1.) Includes the allowance for loan and lease losses and the
allocated transfer risk reserve.
(2.) Before 1994, the netted value of off-balance-sheet items appeared
in "trading account securities" if a gain and "other
non-interest-bearing liabilities" if a loss.
(3.) When possible, based on the average of quarterly balance sheet
data reported on schedule RC-K of the quarterly Call Reports.
(4.) Before 1997, data for large time open accounts are included in
small-denomination time deposits.
(5.) Includes provisions for loan and lease losses and for allocated
transfer risk.
(1.) This count of commercial banks, derived from Call Report data, may vary slightly from measures, such as those in the Federal Reserve's Annual Report that are based on the definition of a bank given in the Bank Holding Company Act and implemented in the Federal Reserve's Regulation Y. (2.) The STBL data are based on a representative sample of up to 348 insured domestic commercial banks and up to 50 foreign-related banking institutions. The sample data are used to estimate the terms of loans extended during the survey period at all domestic banks and at all foreign-related institutions. The data are available at www.federalreserve.gov/releases/E2/. (3.) Loans in the STBL receive risk ratings ranging from 1 to 5, which correspond, respectively, to minimal risk, low risk, moderate risk, acceptable risk, and classified. For more information on loan rating categories in the STBL, see Thomas F. Brady, William B. English, and William R. Nelson, "Recent Changes to the Federal Reserve's Survey of Terms of Business Lending." Federal Reserve Bulletin, vol. 84 (August 1998), p. 604-15. (4.) The average margin by which banks remained well capitalized was computed as follows. First, among the leverage, tier 1, and total capital ratios of each well-capitalized bank, the institution's tightest capital ratio is defined as the one closest to the regulatory standard for being well capitalized. The bank's margin is then defined as the percentage-point difference between its tightest capital ratio and the corresponding regulatory standard. The average margin among all well-capitalized banks--the measure referred to in the text--is the weighted average of all the individual margins, with the weights being each bank's share of the total assets of well-capitalized banks. (5.) The tier 1 ratio is the ratio of tier 1 capital to risk-weighted assets, and the total ratio is the ratio of the sum of tier 1 and tier 2 capital to risk-weighted assets. Tier 1 capital consists primarily of common equity (excluding intangible assets such as goodwill and excluding net unrealized gains on investment account securities classified as available for sale) and certain perpetual preferred stock. Tier 2 capital consists primarily of subordinated debt, preferred stock not included in tier 1 capital, and loan-loss reserves. Risk-weighted assets are calculated by multiplying the amount of assets and the credit-equivalent amount of off-balance-sheet items (an estimate of the potential credit exposure posed by the item) by the risk weight for each category. The risk weights rise from zero to one as the credit risk of the assets increases. The leverage ratio is the ratio of tier 1 capital to average tangible assets. Tangible assets are equal to total assets less assets excluded from common equity in the calculation of tier 1 capital. (6.) Bank holding companies conduct most of their venture capital investment, however, through nonbank subsidiaries. William F. Bassett and Egon Zakrajsek, of the Board's Division of Monetary Affairs, prepared this article. Thomas C. Allard assisted in developing the database used in this article and is responsible for maintaining it. James E. Cypert, Jr., and Alice Memminger provided research assistance. |
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