Report on the condition of the U.S. banking industry: fourth quarter, 2004.Total assets of reporting bank holding companies rose $393.2 billion (or 4.0 percent) in the fourth quarter of 2004, to $10.3 trillion--the first time that this total has exceeded $10 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. . The two largest asset categories--loans, and securities and money market assets--each increased roughly $170 billion, accounting for most of total asset growth. For loans, this increase represented growth of 3.5 percent, with $152.3 billion of the increase occurring at the fifty large bank holding companies. Growth was most pronounced in the commercial real estate, home equity, and credit card categories. A sign of the invigorated in·vig·or·ate tr.v. in·vig·or·at·ed, in·vig·or·at·ing, in·vig·or·ates To impart vigor, strength, or vitality to; animate: "A few whiffs of the raw, strong scent of phlox invigorated her" lending market, reporting bank holding companies increased their unused commitments to lend $253.4 billion (5.5 percent) for the quarter and $725.8 billion (17.7 percent) for the full year. Over both intervals, nearly all the growth took place at the fifty large institutions. The increase of 4.7 percent in securities and money market assets was largely attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a large foreign-owned securities-oriented firm (Barclay's Group US, Inc.) with total assets of $180.7 billion becoming a bank holding company in the fourth quarter. This event coincided with the exit of a smaller foreign-owned securities-oriented firm (CIBC CIBC Canadian Imperial Bank of Commerce CIBC Centres Interinstitutionnels de Bilan de Compétences CIBC Commonwealth Institute of Biological Control (Trinidad) CIBC Commercial International Brokerage Company Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). Holdings, Inc., with $37.4 billion in assets) that ceased being a bank holding company with the sale during the period of its U.S. bank subsidiary. The entering firm had a larger trading portfolio ($42.0 billion) and much larger holdings of short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. money market assets ($90.0 billion), contributing considerably to aggregate growth. These effects aside, the fifty large bank holding companies added $30.6 billion (1.0 percent) to their holdings of securities and money market assets, while all other bank holding companies added $7.4 billion (1.6 percent). Deposits increased significantly but less rapidly than assets, growing $186.2 billion (3.7 percent). Core deposits rose over the quarter, but large-denomination time deposits increased more sharply. Borrowings increased $76.8 billion (2.5 percent) overall, also influenced by developments at a few firms. The addition of the large securities-oriented bank holding company (and exit of a smaller one) added $58.3 billion, and increased borrowing at a large insurance-oriented bank holding company (MetLife) added $35.4 billion. Similarly, the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. change in the population of reporting bank holding companies was the primary reason that other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. increased $94.2 billion. Risk-based regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. capital ratios remained steady over the quarter. Although the leverage ratio declined 12 basis points, to 6.64 percent, all three regulatory capital ratios remained considerably above the standards for well-capitalized companies. Net income fell off modestly in the fourth quarter, declining 1.4 percent from the previous quarter, to $28.8 billion. Net interest income fell despite the increases in loans and other interest-earning assets, as a flatter yield curve and heightened competitive pressure in loan pricing eroded e·rode v. e·rod·ed, e·rod·ing, e·rodes v.tr. 1. To wear (something) away by or as if by abrasion: Waves eroded the shore. 2. To eat into; corrode. net interest margins to 3.26 percent (down 0.21 percent). Non-interest expense rose a modest 1.0 percent, even including expenses related to 2004's many mergers. Cushioning the negative factors, non-interest income rose 1.2 percent (reflecting better trading and mortgage-servicing revenues), and provisions for loan losses declined 2 percent. (1) Asset quality improved yet again in the quarter as nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. fell to 0.82 percent of loans and related assets. Despite the decline in provisions, improved asset quality allowed reporting bank holding companies to reduce their allowance for loan losses by a further $1.3 billion. For the full year, net income of reporting bank holding companies reached $113.5 billion, an increase of 5.1 percent over 2003 despite an 11-basis-point narrowing of net interest margins. Return on average assets and return on average equity declined somewhat, reflecting robust asset growth and merger-related expansion of stockholder's equity Stockholder's equity The residual claims that stockholders have against a firm's assets, calculated by subtracting all current liabilities and debt liabilities from total assets. respectively.
1. Financial characteristics of all reporting bank holding companies
in the United States
Millions of dollars except as noted, not seasonally adjusted
Account or ratio (1, 2) 2000 2001 2002
Balance sheet
Total assets 6,745,836 7,486,952 7,990,945
Loans 3,728,570 3,832,553 4,080,049
Securities and money market 2,197,434 2,568,705 2,866,857
Allowance for loan losses -60,376 -68,833 -74,798
Other 880,209 1,154,528 1,118,837
Total liabilities 6,227,975 6,901,281 7,350,200
Deposits 3,771,749 4,025,769 4,357,245
Borrowings 1,991,564 2,073,770 2,244,331
Other (3) 464,662 801,743 748,624
Total equity 517,861 585,671 640,745
Off-balance-sheet
Unused commitments to lend (4) 3,297,511 3,481,744 3,650,669
Securitizations outstanding (5) n.a. 276,717 295,001
Derivatives (notional value,
billions) (6) 43,608 48,276 57,886
Income statement
Net income (7) 73,168 66,510 85,731
Net interest income 197,759 224,535 246,048
Provisions for loan losses 27,699 40,758 45,107
Non-interest income 200,903 219,016 221,532
Non-interest expense 258,213 302,146 296,964
Security gains or losses -606 4,352 4,598
Ratios (percent)
Return on average equity 15.19 11.86 14.11
Return on average assets 1.13 .91 1.11
Net interest margin (8) 3.58 3.61 3.74
Efficiency ratio (7) 62.77 66.03 62.50
Nonperforming assets to loans and
related assets 1.09 1.44 1.44
Net charge-offs to average loans .66 .91 1.04
Loans to deposits 98.86 95.20 93.64
Regulatory capital ratios
Tier 1 risk-based 8.84 8.92 9.22
Total risk-based 11.80 11.92 12.28
Leverage 6.81 6.68 6.72
Number of reporting bank holding
companies 1,727 1,842 1,979
2003
Account or ratio (1, 2) 2003 2004 Q2
Balance sheet
Total assets 8,880,545 10,339,429 8,726,133
Loans 4,435,863 5,111,690 4,301,114
Securities and money market 3,302,240 3,850,580 3,230,018
Allowance for loan losses -73,835 -74,610 -74,627
Other 1,216,278 1,451,770 1,269,628
Total liabilities 8,177,562 9,450,301 8,046,202
Deposits 4,705,043 5,249,255 4,599,696
Borrowings 2,630,168 3,091,158 2,525,842
Other (3) 842,351 1,109,889 920,664
Total equity 702,983 889,128 679,932
Off-balance-sheet
Unused commitments to lend (4) 4,097,531 4,823,303 3,756,486
Securitizations outstanding (5) 298,348 353,978 285,286
Derivatives (notional value,
billions) (6) 72,914 89,124 68,353
Income statement
Net income (7) 107,950 113,497 26,983
Net interest income 257,537 286,253 64,685
Provisions for loan losses 33,075 28,784 9,197
Non-interest income 250,639 273,524 64,372
Non-interest expense 316,330 364,862 79,972
Security gains or losses 5,771 5,524 2,694
Ratios (percent)
Return on average equity 16.28 14.27 16.37
Return on average assets 1.26 1.16 1.27
Net interest margin (8) 3.51 3.41 3.56
Efficiency ratio (7) 61.67 62.60 62.36
Nonperforming assets to loans and
related assets 1.15 .82 1.33
Net charge-offs to average loans .84 .67 .88
Loans to deposits 94.28 97.38 93.51
Regulatory capital ratios
Tier 1 risk-based 9.58 9.41 9.31
Total risk-based 12.60 12.28 12.32
Leverage 6.87 6.64 6.79
Number of reporting bank holding
companies 2,134 2,253 2,064
2003 2004
Account or ratio (1, 2) Q3 Q4 Q1
Balance sheet
Total assets 8,751,183 8,880,545 9,348,190
Loans 4,376,319 4,435,863 4,606,523
Securities and money market 3,190,602 3,302,240 3,592,416
Allowance for loan losses -73,926 -73,835 -76,617
Other 1,258,189 1,216,278 1,225,867
Total liabilities 8,063,922 8,177,562 8,603,836
Deposits 4,605,545 4,705,043 4,846,062
Borrowings 2,572,084 2,630,168 2,867,443
Other (3) 886,293 842,351 890,331
Total equity 687,261 702,983 744,354
Off-balance-sheet
Unused commitments to lend (4) 3,887,357 4,097,531 4,350,930
Securitizations outstanding (5) 290,328 298,348 308,543
Derivatives (notional value,
billions) (6) 69,452 72,914 79,271
Income statement
Net income (7) 28,177 29,545 30,826
Net interest income 66,120 68,072 68,769
Provisions for loan losses 8,246 8,944 7,163
Non-interest income 65,423 69,991 68,023
Non-interest expense 81,678 86,323 84,262
Security gains or losses 596 655 1,987
Ratios (percent)
Return on average equity 16.81 17.25 17.13
Return on average assets 1.29 1.34 1.34
Net interest margin (8) 3.53 3.59 3.46
Efficiency ratio (7) 61.91 62.33 61.69
Nonperforming assets to loans and
related assets 1.23 1.15 1.09
Net charge-offs to average loans .86 .98 .72
Loans to deposits 95.02 94.28 95.06
Regulatory capital ratios
Tier 1 risk-based 9.53 9.58 9.53
Total risk-based 12.54 12.60 12.48
Leverage 6.77 6.87 6.88
Number of reporting bank holding
companies 2,120 2,134 2,192
2004
Account or ratio (1, 2) Q2 Q3 Q4
Balance sheet
Total assets 9,699,421 9,946,162 10,339,429
Loans 4,792,622 4,937,021 5,111,690
Securities and money market 3,628,469 3,678,595 3,850,580
Allowance for loan losses -76,398 -75,902 -74,610
Other 1,354,729 1,406,448 1,451,770
Total liabilities 8,925,650 9,093,036 9,450,301
Deposits 5,003,107 5,063,083 5,249,255
Borrowings 2,917,437 3,014,311 3,091,158
Other (3) 1,005,107 1,015,641 1,109,889
Total equity 773,771 853,126 889,128
Off-balance-sheet
Unused commitments to lend (4) 4,420,733 4,569,881 4,823,303
Securitizations outstanding (5) 314,258 313,436 353,978
Derivatives (notional value,
billions) (6) 83,107 84,721 89,124
Income statement
Net income (7) 25,808 29,186 28,767
Net interest income 73,217 73,755 72,246
Provisions for loan losses 6,989 7,489 7,846
Non-interest income 73,195 67,714 68,549
Non-interest expense 102,042 90,373 91,263
Security gains or losses 997 1,960 508
Ratios (percent)
Return on average equity 13.47 14.06 13.31
Return on average assets 1.06 1.18 1.11
Net interest margin (8) 3.52 3.47 3.26
Efficiency ratio (7) 62.11 63.54 64.21
Nonperforming assets to loans and
related assets .97 .89 .82
Net charge-offs to average loans .66 .61 .71
Loans to deposits 95.79 97.51 97.38
Regulatory capital ratios
Tier 1 risk-based 9.38 9.40 9.41
Total risk-based 12.28 12.30 12.28
Leverage 6.67 6.76 6.64
Number of reporting bank holding
companies 2,210 2,240 2,253
2. Financial characteristics of fifty large bank holding
companies in the United States
Millions of dollars except as noted, not seasonally adjusted
Account or ratio (2, 9) 2000 2001 2002
Balance sheet
Total assets 5,507,787 5,882,246 6,243,212
Loans 2,934,979 2,953,665 3,136,678
Securities and money market 1,849,888 2,054,945 2,285,222
Allowance for loan losses -49,186 -56,512 -61,091
Other 772,107 930,150 882,404
Total liabilities 5,096,893 5,433,581 5,756,182
Deposits 2,845,631 3,021,096 3,257,657
Borrowings 1,813,934 1,878,921 2,042,479
Other (3) 437,329 533,564 456,046
Total equity 410,894 448,665 487,030
Off-balance-sheet
Unused commitments to lend (4) 3,075,664 3,238,472 3,386,455
Securitizations outstanding (5) n.a. 271,825 289,320
Derivatives (notional value,
billions) (6) 43,559 48,195 57,801
Income statement
Net income (7) 60,436 52,619 68,451
Net interest income 153,462 166,608 183,719
Provisions for loan losses 24,108 35,852 39,380
Non-interest income 181,707 174,504 172,705
Non-interest expense 216,969 224,451 215,807
Security gains or losses -601 4,316 5,008
Ratios (percent)
Return on average equity 15.86 12.24 14.72
Return on average assets 1.14 .92 1.13
Net interest margin (8) 3.44 3.39 3.56
Efficiency ratio (7) 62.67 63.43 59.65
Nonperforming assets to loans and
related assets 1.17 1.57 1.56
Net charge-offs to average loans .75 1.04 1.21
Loans to deposits 103.14 97.77 96.29
Regulatory capital ratios
Tier 1 risk-based 8.21 8.24 8.52
Total risk-based 11.46 11.59 11.95
Leverage 6.43 6.25 6.26
2003
Account or ratio (2, 9) 2003 2004 Q2
Balance sheet
Total assets 6,901,577 7,940,955 6,806,767
Loans 3,381,963 3,925,111 3,290,399
Securities and money market 2,633,690 2,968,226 2,567,101
Allowance for loan losses -59,233 -59,380 -60,138
Other 945,157 1,106,999 1,009,406
Total liabilities 6,370,790 7,251,931 6,294,212
Deposits 3,508,261 3,942,375 3,435,534
Borrowings 2,360,766 2,721,165 2,267,749
Other (3) 501,764 588,392 590,929
Total equity 530,787 689,025 512,555
Off-balance-sheet
Unused commitments to lend (4) 3,802,454 4,489,800 3,470,355
Securitizations outstanding (5) 292,312 348,986 279,083
Derivatives (notional value,
billions) (6) 72,750 88,744 68,213
Income statement
Net income (7) 87,857 90,492 21,760
Net interest income 192,171 213,810 48,327
Provisions for loan losses 28,563 25,338 8,010
Non-interest income 195,908 213,393 50,465
Non-interest expense 229,270 267,909 58,241
Security gains or losses 5,190 4,634 2,349
Ratios (percent)
Return on average equity 17.52 14.77 17.52
Return on average assets 1.32 1.19 1.32
Net interest margin (8) 3.35 3.25 3.40
Efficiency ratio (7) 58.59 59.51 59.29
Nonperforming assets to loans and
related assets 1.22 .84 1.41
Net charge-offs to average loans .97 .80 1.04
Loans to deposits 96.40 99.56 95.78
Regulatory capital ratios
Tier 1 risk-based 8.83 8.59 8.57
Total risk-based 12.20 11.85 11.93
Leverage 6.38 6.17 6.31
2003 2004
Account or ratio (2, 9) Q3 Q4 Q1
Balance sheet
Total assets 6,825,187 6,901,577 7,338,392
Loans 3,348,415 3,381,963 3,534,690
Securities and money market 2,538,590 2,633,690 2,910,826
Allowance for loan losses -59,235 -59,233 -61,757
Other 997,418 945,157 954,633
Total liabilities 6,304,621 6,370,790 6,770,661
Deposits 3,431,483 3,508,261 3,624,929
Borrowings 2,316,577 2,360,766 2,610,435
Other (3) 556,561 501,764 535,297
Total equity 520,567 530,787 567,731
Off-balance-sheet
Unused commitments to lend (4) 3,594,931 3,802,454 4,049,808
Securitizations outstanding (5) 284,134 292,312 304,545
Derivatives (notional value,
billions) (6) 69,308 72,750 79,090
Income statement
Net income (7) 23,169 24,498 25,364
Net interest income 49,963 51,206 51,864
Provisions for loan losses 7,070 7,871 6,394
Non-interest income 51,758 55,618 54,154
Non-interest expense 60,254 63,204 61,979
Security gains or losses 483 632 1,636
Ratios (percent)
Return on average equity 18.27 18.88 18.43
Return on average assets 1.35 1.43 1.40
Net interest margin (8) 3.40 3.47 3.31
Efficiency ratio (7) 59.03 58.97 58.72
Nonperforming assets to loans and
related assets 1.30 1.22 1.14
Net charge-offs to average loans 1.00 1.13 .88
Loans to deposits 97.58 96.40 97.51
Regulatory capital ratios
Tier 1 risk-based 8.83 8.83 8.79
Total risk-based 12.19 12.20 12.06
Leverage 6.30 6.38 6.38
2004
Account or ratio (2, 9) Q2 Q3 Q4
Balance sheet
Total assets 7,528,335 7,726,752 7,940,955
Loans 3,668,300 3,772,804 3,925,111
Securities and money market 2,895,327 2,937,667 2,968,226
Allowance for loan losses -61,338 -60,692 -59,380
Other 1,026,046 1,076,974 1,106,999
Total liabilities 6,938,022 7,069,330 7,251,931
Deposits 3,754,261 3,787,308 3,942,375
Borrowings 2,637,680 2,735,250 2,721,165
Other (3) 546,082 546,772 588,392
Total equity 590,313 657,423 689,025
Off-balance-sheet
Unused commitments to lend (4) 4,106,493 4,240,809 4,489,800
Securitizations outstanding (5) 307,878 307,325 348,986
Derivatives (notional value,
billions) (6) 82,887 84,512 88,744
Income statement
Net income (7) 19,490 23,171 23,557
Net interest income 54,023 55,177 54,478
Provisions for loan losses 6,205 6,698 6,744
Non-interest income 56,152 52,088 54,954
Non-interest expense 75,404 65,503 68,101
Security gains or losses 677 1,707 541
Ratios (percent)
Return on average equity 13.31 14.42 14.02
Return on average assets 1.03 1.20 1.19
Net interest margin (8) 3.32 3.32 3.16
Efficiency ratio (7) 58.27 60.50 61.60
Nonperforming assets to loans and
related assets 1.00 .91 .84
Net charge-offs to average loans .78 .72 .83
Loans to deposits 97.71 99.62 99.56
Regulatory capital ratios
Tier 1 risk-based 8.64 8.64 8.59
Total risk-based 11.89 11.86 11.85
Leverage 6.15 6.24 6.17
3. Financial characteristics of all other reporting bank holding
companies in the United States
Millions of dollars except as noted, not seasonally adjusted
Account (1, 10) 2000 2001 2002
Balance sheet
Total assets 1,179,815 1,291,472 1,415,874
Loans 769,242 824,735 889,216
Securities and money market 319,020 357,476 406,422
Allowance for loan losses -10,922 -11,957 -13,269
Other 102,476 121,218 133,505
Total liabilities 1,078,257 1,175,659 1,285,653
Deposits 914,290 990,558 1,081,607
Borrowings 143,028 159,229 172,810
Other (3) 20,939 25,873 31,237
Total equity 101,558 115,813 130,221
Off-balance-sheet
Unused commitments to lend (4) 212,784 233,098 252,308
Securitizations outstanding (5) n.a. 4,567 4,942
Derivatives (notional value,
billions) (6) 32 51 53
Income statement
Net income (7) 12,436 13,752 16,492
Net interest income 43,566 46,324 51,106
Provisions for loan losses 3,420 4,469 5,094
Non-interest income 16,090 22,339 24,528
Non-interest expense 38,132 44,446 47,066
Security gains or losses -10 745 670
Ratios (percent)
Return on average equity 13.09 12.50 13.47
Return on average assets 1.11 1.12 1.23
Net interest margin (8) 4.32 4.21 4.26
Efficiency ratio (7) 62.27 63.86 61.26
Nonperforming assets to loans and
related assets .77 .97 1.02
Net charge-offs to average loans .32 .43 .46
Loans to deposits 84.14 83.26 82.21
Regulatory capital ratios
Tier 1 risk-based 11.76 12.18 12.42
Total risk-based 13.24 13.76 14.06
Leverage 8.49 8.76 8.87
Number of other reporting bank
holding companies 1,652 1,779 1,916
2003
Account (1, 10) 2003 2004 Q2
Balance sheet
Total assets 1,551,826 1,708,712 1,511,952
Loans 974,580 1,104,277 936,117
Securities and money market 444,967 466,243 448,650
Allowance for loan losses -14,185 -14,830 -13,957
Other 146,464 153,022 141,141
Total liabilities 1,410,440 1,551,059 1,372,657
Deposits 1,174,218 1,286,968 1,143,286
Borrowings 201,634 223,481 194,844
Other (3) 34,589 40,609 34,528
Total equity 141,385 157,653 139,294
Off-balance-sheet
Unused commitments to lend (4) 282,164 320,132 273,591
Securitizations outstanding (5) 4,893 2,877 5,205
Derivatives (notional value,
billions) (6) 67 79 74
Income statement
Net income (7) 17,692 19,340 4,633
Net interest income 53,266 57,492 13,295
Provisions for loan losses 4,295 3,215 1,098
Non-interest income 27,514 26,392 7,282
Non-interest expense 51,551 53,647 12,995
Security gains or losses 989 552 400
Ratios (percent)
Return on average equity 13.00 13.08 13.59
Return on average assets 1.19 1.19 1.25
Net interest margin (8) 4.00 3.94 4.02
Efficiency ratio (7) 63.10 62.85 63.69
Nonperforming assets to loans and
related assets .98 .77 1.09
Net charge-offs to average loans .39 .25 .37
Loans to deposits 83.00 85.80 81.88
Regulatory capital ratios
Tier 1 risk-based 12.47 12.35 12.51
Total risk-based 14.20 14.01 14.21
Leverage 8.99 9.11 8.93
Number of other reporting bank
holding companies 2,071 2,198 2,001
2003 2004
Account (1, 10) Q3 Q4 Q1
Balance sheet
Total assets 1,518,413 1,551,826 1,589,816
Loans 950,786 974,580 1,001,254
Securities and money market 439,584 444,967 459,839
Allowance for loan losses -14,206 -14,185 -14,475
Other 142,249 146,464 143,199
Total liabilities 1,379,967 1,410,440 1,444,354
Deposits 1,152,364 1,174,218 1,207,152
Borrowings 194,470 201,634 197,959
Other (3) 33,133 34,589 39,244
Total equity 138,446 141,385 145,462
Off-balance-sheet
Unused commitments to lend (4) 278,701 282,164 287,740
Securitizations outstanding (5) 5,116 4,893 2,875
Derivatives (notional value,
billions) (6) 67 67 71
Income statement
Net income (7) 4,506 4,144 4,770
Net interest income 13,207 13,665 13,888
Provisions for loan losses 1,056 1,133 804
Non-interest income 6,944 6,679 6,700
Non-interest expense 12,735 13,461 13,178
Security gains or losses 131 187 291
Ratios (percent)
Return on average equity 13.24 11.91 13.44
Return on average assets 1.20 1.08 1.22
Net interest margin (8) 3.93 3.98 3.98
Efficiency ratio (7) 62.84 65.98 63.19
Nonperforming assets to loans and
related assets 1.03 .98 .96
Net charge-offs to average loans .36 .51 .22
Loans to deposits 82.51 83.00 82.94
Regulatory capital ratios
Tier 1 risk-based 12.46 12.47 12.51
Total risk-based 14.18 14.20 14.23
Leverage 8.91 8.99 9.04
Number of other reporting bank
holding companies 2,057 2,071 2,130
2004
Account (1, 10) Q2 Q3 Q4
Balance sheet
Total assets 1,634,419 1,674,192 1,708,712
Loans 1,039,136 1,076,582 1,104,277
Securities and money market 457,512 458,796 466,243
Allowance for loan losses -14,718 -14,915 -14,830
Other 152,489 153,729 153,022
Total liabilities 1,489,548 1,519,841 1,551,059
Deposits 1,233,046 1,259,508 1,286,968
Borrowings 218,586 220,193 223,481
Other (3) 37,916 40,140 40,609
Total equity 144,870 154,351 157,653
Off-balance-sheet
Unused commitments to lend (4) 299,222 311,754 320,132
Securitizations outstanding (5) 3,000 2,757 2,877
Derivatives (notional value,
billions) (6) 65 67 79
Income statement
Net income (7) 4,763 4,956 4,851
Net interest income 14,026 14,582 14,996
Provisions for loan losses 792 805 814
Non-interest income 6,620 6,530 6,542
Non-interest expense 13,157 13,347 13,965
Security gains or losses 117 129 15
Ratios (percent)
Return on average equity 13.14 13.27 12.51
Return on average assets 1.19 1.20 1.15
Net interest margin (8) 3.90 3.93 3.96
Efficiency ratio (7) 63.11 63.15 63.88
Nonperforming assets to loans and
related assets .87 .85 .77
Net charge-offs to average loans .25 .23 .31
Loans to deposits 84.27 85.48 85.80
Regulatory capital ratios
Tier 1 risk-based 12.38 12.36 12.35
Total risk-based 14.08 14.03 14.01
Leverage 9.05 9.09 9.11
Number of other reporting bank
holding companies 2,148 2,182 2,198
4. Nonfinancial characteristics of all reporting bank holding companies
in the United States
Millions of dollars except as noted, not seasonally adjusted
Account 2000 2001 2002
Bank holding companies that
qualify as financial holding
companies (11, 12)
Domestic
Number 300 389 435
Total assets 4,497,781 5,440,842 5,921,277
Foreign-owned (13)
Number 9 10 11
Total assets 502,506 621,442 616,254
Total US commercial bank
assets (14) 6,129,534 6,415,909 6,897,447
By ownership
Reporting bank holding companies 5,657,210 5,942,575 6,429,738
Other bank holding companies 229,274 230,464 227,017
Independent banks 243,050 242,870 240,692
Assets associated with nonbanking
activities (12, 15)
Insurance n.a. 426,462 372,405
Securities broker-dealers n.a. n.a. 630,851
Thrift institutions 102,218 91,170 107,422
Foreign nonbank institutions 132,629 138,977 145,344
Other nonbank institutions 1,234,714 1,674,267 561,712
Number of bank holding companies
engaged in nonbanking
activities (12, 15)
Insurance n.a. 143 96
Securities broker-dealers n.a. n.a. 47
Thrift institutions 50 38 32
Foreign nonbank institutions 25 32 37
Other nonbank institutions 633 743 880
Foreign-owned bank holding
companies (13)
Number 21 23 26
Total assets 636,669 764,411 762,901
Employees of reporting bank holding
companies (full-time equivalent) 1,859,930 1,985,981 1,992,559
Assets of fifty large bank holding
companies (9, 17)
Fixed panel (from table 2) 5,507,787 5,882,246 6,243,212
Fifty large as of reporting date 5,319,129 5,732,621 6,032,000
Percent of all reporting
bank holding companies 78.90 76.60 75.50
2003
Account 2003 2004 Q2
Bank holding companies that
qualify as financial holding
companies (11, 12)
Domestic
Number 452 474 441
Total assets 6,610,312 7,462,510 6,438,319
Foreign-owned (13)
Number 12 14 11
Total assets 710,441 1,376,325 732,695
Total US commercial bank
assets (14) 7,397,818 8,207,170 7,325,350
By ownership
Reporting bank holding companies 6,940,992 7,785,424 6,863,154
Other bank holding companies 219,222 209,251 222,998
Independent banks 237,604 212,495 239,198
Assets associated with nonbanking
activities (12, 15)
Insurance 437,503 579,113 405,297
Securities broker-dealers 656,775 719,242 659,701
Thrift institutions 133,056 191,201 124,640
Foreign nonbank institutions 170,600 216,758 160,515
Other nonbank institutions 686,367 1,128,279 737,434
Number of bank holding companies
engaged in nonbanking
activities (12, 15)
Insurance 102 99 93
Securities broker-dealers 50 43 50
Thrift institutions 27 27 31
Foreign nonbank institutions 41 39 40
Other nonbank institutions 1,042 1,031 945
Foreign-owned bank holding
companies (13)
Number 27 29 27
Total assets 934,088 1,537,203 946,847
Employees of reporting bank holding
companies (full-time equivalent) 2,034,358 2,162,036 2,019,953
Assets of fifty large bank holding
companies (9, 17)
Fixed panel (from table 2) 6,901,577 7,940,955 6,806,767
Fifty large as of reporting date 6,666,488 7,940,955 6,587,000
Percent of all reporting
bank holding companies 75.10 76.80 75.50
2003 2004
Account Q3 Q4 Q1
Bank holding companies that
qualify as financial holding
companies (11, 12)
Domestic
Number 449 452 465
Total assets 6,451,785 6,610,312 6,845,700
Foreign-owned (13)
Number 11 12 13
Total assets 729,244 710,441 995,454
Total US commercial bank
assets (14) 7,293,920 7,397,818 7,614,504
By ownership
Reporting bank holding companies 6,842,727 6,940,992 7,165,651
Other bank holding companies 217,035 219,222 213,193
Independent banks 234,157 237,604 235,660
Assets associated with nonbanking
activities (12, 15)
Insurance 419,575 437,503 468,168
Securities broker-dealers 686,049 656,775 713,794
Thrift institutions 143,578 133,056 139,713
Foreign nonbank institutions 162,789 170,600 195,472
Other nonbank institutions 736,515 686,367 837,269
Number of bank holding companies
engaged in nonbanking
activities (12, 15)
Insurance 102 102 100
Securities broker-dealers 46 50 49
Thrift institutions 29 27 29
Foreign nonbank institutions 39 41 41
Other nonbank institutions 992 1,042 1,009
Foreign-owned bank holding
companies (13)
Number 27 27 27
Total assets 947,254 934,088 1,146,258
Employees of reporting bank holding
companies (full-time equivalent) 2,031,029 2,034,358 2,099,072
Assets of fifty large bank holding
companies (9, 17)
Fixed panel (from table 2) 6,825,187 6,901,577 7,338,392
Fifty large as of reporting date 6,602,255 6,666,488 7,045,844
Percent of all reporting
bank holding companies 75.40 75.10 75.40
2004
Account Q2 Q3 Q4
Bank holding companies that
qualify as financial holding
companies (11, 12)
Domestic
Number 471 477 474
Total assets 7,069,908 7,264,913 7,462,510
Foreign-owned (13)
Number 14 14 14
Total assets 1,117,732 1,194,542 1,376,325
Total US commercial bank
assets (14) 7,850,644 8,040,967 8,207,170
By ownership
Reporting bank holding companies 7,409,186 7,599,384 7,785,424
Other bank holding companies 211,725 208,764 209,251
Independent banks 229,733 232,819 212,495
Assets associated with nonbanking
activities (12, 15)
Insurance 583,073 579,785 579,113
Securities broker-dealers 710,485 756,869 719,242
Thrift institutions 156,033 162,396 191,201
Foreign nonbank institutions 226,055 230,566 216,758
Other nonbank institutions 861,333 873,677 1,128,279
Number of bank holding companies
engaged in nonbanking
activities (12, 15)
Insurance 101 98 99
Securities broker-dealers 48 45 43
Thrift institutions 27 25 27
Foreign nonbank institutions 40 40 39
Other nonbank institutions 1,030 1,049 1,031
Foreign-owned bank holding
companies (13)
Number 28 28 29
Total assets 1,271,844 1,350,458 1,537,203
Employees of reporting bank holding
companies (full-time equivalent) 2,085,671 2,133,267 2,162,036
Assets of fifty large bank holding
companies (9, 17)
Fixed panel (from table 2) 7,528,335 7,726,752 7,940,955
Fifty large as of reporting date 7,385,384 7,644,504 7,940,955
Percent of all reporting
bank holding companies 76.10 76.90 76.80
Note. All data are as of the most recent period shown. The historical figures may not match those in earlier versions of this table because of mergers, significant acquisitions or divestitures, or revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. or restatements to bank holding company financial reports. Data for the most recent period may not include all late-filing institutions. (1.) Covers top-tier bank holding companies except (1) those with consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: assets of less than $150 million and with only one subsidiary bank and (2) multibank holding companies Noun 1. multibank holding company - a bank holding company owning several banks bank holding company - a holding company owning or controlling one or more banks with consolidated assets of less than $150 million, with no debt outstanding to the general public and not engaged in certain nonbanking activities. (2.) Data for all reporting bank holding companies and the fifty large bank holding companies reflect merger adjustments to the fifty large bank holding companies. Merger adjustments account for mergers, acquisitions, other business combinations and large divestitures that occurred during the time period covered in the tables so that the historical information on each of the fifty underlying institutions depicts, to the greatest extent possible, the institutions as they exist in the most recent period. In general, adjustments for mergers among bank holding companies reflect the combination of historical data from predecessor predecessor - parent bank holding companies. The data for the fifty large bank holding companies have also been adjusted as necessary to match the historical figures in each company's most recently available financial statement. In general, the data are not adjusted for changes in generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . (3.) Includes minority interests in consolidated subsidiaries. (4.) Includes credit card lines of credit as well as commercial lines of credit. (5.) Includes loans sold to securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. vehicles in which bank holding companies retain some interest, whether through recourse The right of an individual who is holding a Commercial Paper, such as a check or promissory note, to receive payment on it from anyone who has signed it if the individual who originally made it is unable, or refuses, to tender payment. or seller-provided credit enhancements Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing or by servicing the underlying assets. Securitization data were first collected on the FR Y-9C report for June June: see month. 2001. (6.) The notional value Notional Value The total value of a leveraged position's assets. This term is commonly used in the options, futures and currency markets because in them a very little amount of invested money can control a large position (have a large consequence for the trader). of a derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. is the reference amount of an asset on which an interest rate or price differential is calculated. The total notional value of a bank holding company's derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. holdings is the sum of the notional values of each derivative contract regardless of whether the bank holding company is a payor payor (payer) n. The one who must make payment on a promissory note. or recipient One who receives. The person to whom an e-mail message is sent is the recipient. (communications) recipient - One who receives; receiver. E.g. "No recipient of the e-mail message will know about the other addressees who were listed in the BCC header." of payments under the contract. The actual cash flows and fair market values associated with these derivative contracts are generally only a small fraction of the contract's notional value. (7.) Income statement subtotals for all reporting bank holding companies and the fifty large bank holding companies exclude extraordinary items, the cumulative effects of changes in accounting principles, and discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. at the fifty large institutions and therefore will not sum to Net income. The efficiency ratio is calculated excluding nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. income and expenses. (8.) Calculated on a fully-taxable-equivalent basis. (9.) In general, the fifty large bank holding companies are the fifty largest bank holding companies as measured by total consolidated assets for the latest period shown. Excludes a few large bank holding companies whose commercial banking operations account for only a small portion of assets and earnings. (10.) Excludes predecessor bank holding companies that were subsequently merged into other bank holding companies in the panel of fifty large bank holding companies. Also excludes those bank holding companies excluded from the panel of fifty large bank holding companies because commercial banking operations represent only a small part of their consolidated operations. (11.) Exclude qualifying institutions that are not reporting bank holding companies. (12.) No data related to financial holding companies and only some data on nonbanking activities were collected on the FR Y-9C report before implementation of the Gramm-Leach-Bliley Act The Gramm-Leach-Bliley Act, also known as the Gramm-Leach-Bliley Financial Services Modernization Act, Pub. L. No. 106-102, 113 Stat. 1338 (November 12, 1999), is an Act of the United States Congress which repealed the Glass-Steagall Act, opening up competition in 2000. (13.) A bank holding company is considered "foreign-owned" if it is majority-owned by a foreign entity. Data for foreign-owned companies do not include data for branches and agencies of foreign banks operating in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . (14.) Total assets of insured The person who obtains or is otherwise covered by insurance on his or her health, life, or property. The insured in a policy is not limited to the insured named in the policy but applies to anyone who is insured under the policy. insured n. commercial banks in the United States as reported in the commercial bank Call Report (FFIEC FFIEC Federal Financial Institutions Examination Council 031 or 041, Reports of Condition and Income). Excludes data for a small number of commercial banks owned by other commercial banks that file separate call reports yet are also covered by the reports filed by their parent banks. Also excludes data for mutual savings banks Mutual savings bank A state-chartered savings bank which is owned by its depositors and managed by a fiduciary board of trustees. . (15.) Data for thrift thrift: see leadwort. , foreign nonbank non·bank adj. Of, relating to, or done by a business or an institution that is not a bank but performs similar services. , and other nonbank institutions are total assets of each type of subsidiary as reported in the FR Y-9LP report. Data cover those subsidiaries in which the top-tier bank holding company directly or indirectly owns or controls more than 50 percent of the outstanding voting stock Voting stock The shares in a corporation that entitle the shareholder to vote. voting stock Stock for which the holder has the right to vote in the election of directors, in the appointment of auditors, or in other matters brought up at the and that has been consolidated using generally accepted accounting principles. Data for securities broker-dealers are net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. (that is, total assets, excluding intercompany transactions Intercompany transaction Transaction carried out between two units of the same corporation. ) of broker-dealer Broker-Dealer A person or firm in the business of buying and selling securities operating as both a broker and dealer depending on the transaction. Notes: Technically, a broker is only an agent who executes orders on behalf of clients, whereas a dealer acts as a principal subsidiaries engaged in activities pursuant to the Gramm-Leach-Bliley Act, as reported on schedule HC-M of the FR Y-9C report. Data for insurance activities are all insurance-related assets held by the bank holding company as reported on schedule HC-I of the FR Y-9C report. Beginning in 2002:Q1, insurance totals exclude intercompany transactions and subsidiaries engaged in credit-related insurance or those engaged principally in insurance agency activities. Beginning in 2002:Q2, insurance totals include only newly authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: insurance activities under the Gramm-Leach-Bliley Act. (16.) Aggregate assets of thrift subsidiaries were affected significantly by the conversion of Charter One's thrift subsidiary (with assets of $37 billion) to a commercial bank in the second quarter of 2002 and the acquisition by Citigroup Citigroup U.S. holding company formed in 1998 from the merger of Citicorp (itself a holding company incorporated in 1967) and Travelers Group, Inc. The $70 billion merger included one of the largest U.S. investment banks, Salomon Smith Barney Inc. of Golden State Bancorp (a thrift institution Thrift institution An organization formed as a depository for primarily consumer savings. Savings and loan associations and savings banks are thrift institutions. with assets of $55 billion) in the fourth quarter of 2002. (17.) Changes over time in the total assets of the time-varying panel of fifty large bank holding companies are attributable to (1) changes in the companies that make up the panel and (2) to a small extent, restatements of financial reports between periods. n.a. Not available Source. Federal Reserve Reports FRY-9C and FR Y-9LP, Federal Reserve National Information Center, and published financial reports. (1.) To better reflect the components of net income, the accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. tables have been adjusted so that non-interest income no longer includes realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. and losses on securities. |
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