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Report on the condition of the U.S. banking industry: fourth quarter, 2003.

The assets of reporting bank holding companies expanded roughly $130 billion, or 1.6 percent, in the fourth quarter. Securities and money market assets accounted for most of the increase, rising about $120 billion after having declined in the third quarter. Bank holding companies added to their holdings of mortgage pass-through securities and direct obligations of U.S. government agencies. Loans grew 1.4 percent, a more modest pace than in recent periods, tempered by continuing declines in commercial and industrial lending and some shrinkage in the stock of residential mortgage loans held for sale to securitization vehicles (related to slower mortgage originations). Deposits and borrowings increased 2.3 percent and 2.4 percent, respectively, in part compensating for a decline in other liabilities.

Undrawn commitments to lend rose more than $200 billion, or 5.4 percent, in the quarter and reached the $4.0 trillion level for the first time. Most of the increase was in the credit card category, due in large part to the acquisition during the quarter of large credit card portfolios from non-bank-holding-company firms.

Asset quality showed further signs of improvement. Nonperforming assets continued to decline--both in absolute terms and as a share of loans--as they have since late 2002. The net charge-off ratio increased slightly in the fourth quarter, to 0.83 percent of average loans, but remained well below year-earlier levels.

Net income rose overall to $28.3 billion for the fourth quarter, bringing full-year profits to $100 billion for the first time. Net interest income accounted for much of the quarterly improvement and was fueled by healthy growth in securities holdings and a rebound in yields on mortgage-backed securities--the latter related to slower prepayments. Net interest margins inched up to 3.46 percent of period-average earning assets, representing at the least a pause in the steady contraction that margins have sustained since late 2001. Non-interest income recovered 4.5 percent after a small third-quarter decline, supported by higher fees from asset management, mortgage servicing, and investment banking. Non-interest expense, which often jumps in the final quarter of a year, increased only modestly in this case and continued to represent roughly 62 percent of pretax revenue.

All of the quarterly gain in aggregate earnings occurred at the "fifty large" bank holding companies. For "all other" bank holding companies, aggregate earnings declined slightly in the fourth quarter as they had in the third quarter. Non-interest costs at these smaller bank holding companies expanded nearly 6 percent in the fourth quarter, while non-interest income slipped slightly. The net charge-off ratio rose significantly at smaller institutions in the fourth quarter, although at 0.49 percent of average loans it was still only half the level of the "fifty large" bank holding companies.
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) 1999 2000 2001

Balance sheet

Total assets 6,205,131 6,682,719 7,439,323

Loans 3,381,377 3,693,963 3,800,958
Securities and money market 2,075,524 2,177,628 2,554,074
Allowance for loan losses -54,336 -58,709 -66,705
Other 802,566 869,837 1,150,997

Total liabilities 5,742,150 6,172,225 6,858,551

Deposits 3,500,632 3,748,468 4,001,377
Borrowings 1,762,964 1,964,922 2,057,607
Other (3) 478,555 458,835 799,568

Total equity 462,981 510,494 580,773

Off-balance-sheet
Unused commitments to lend (4) 3,095,397 3,297,511 3,481,744
Securitizations outstanding (5) n.a. n.a. 276,717
Derivatives (notional value,
 billions) (6) 37,786 43,483 48,261

Income statement
Net income (7) 76,649 72,055 65,377
 Net interest income 187,103 195,079 221,406
 Provisions for loan losses 20,067 26,864 39,522
 Non-interest income 173,041 195,995 214,061
 Non-interest expense 224,044 253,165 297,108
 Security gains or losses 3,114 -588 4,294

Ratios (percent)
Return on average equity 17.50 15.15 11.79
Return on average assets 1.30 1.12 .91
Net interest margin (8) 3.72 3.57 3.59
Efficiency ratio (7) 60.87 62.57 65.77
Nonperforming assets to loans and
 related assets .84 1.07 1.45
Net charge-offs to average loans .54 .65 .89
Loans to deposits 96.59 98.55 94.99

Regulatory capital ratios
Tier 1 risk-based 8.78 8.81 8.91
Total risk-based 11.71 11.78 11.91
Leverage 7.00 6.80 6.65

Number of reporting bank holding
 companies 1,647 1,727 1,842

 2002

 Account or ratio (1, 2) 2002 2003 Q2

Balance sheet

Total assets 7,930,057 8,819,467 7,623,734

Loans 4,041,220 4,393,666 3,828,026
Securities and money market 2,846,398 3,285,907 2,761,576
Allowance for loan losses -71,914 -72,206 -69,361
Other 1,114,353 1,212,100 1,103,494

Total liabilities 7,295,544 8,123,613 7,012,587

Deposits 4,326,602 4,674,108 4,050,023
Borrowings 2,223,501 2,610,429 2,176,850
Other (3) 745,441 839,076 785,714

Total equity 634,513 695,854 611,147

Off-balance-sheet
Unused commitments to lend (4) 3,650,669 4,097,594 3,547,956
Securitizations outstanding (5) 295,001 298,348 282,556
Derivatives (notional value,
 billions) (6) 57,734 72,870 52,614

Income statement
Net income (7) 84,534 106,614 21,382
 Net interest income 242,645 254,212 60,787
 Provisions for loan losses 42,922 31,532 10,372
 Non-interest income 215,826 245,029 52,637
 Non-interest expense 291,948 311,032 71,172
 Security gains or losses 4,493 5,770 519

Ratios (percent)
Return on average equity 14.04 16.23 14.25
Return on average assets 1.10 1.26 1.13
Net interest margin (8) 3.72 3.49 3.77
Efficiency ratio (7) 62.42 61.53 62.23
Nonperforming assets to loans and
 related assets 1.46 1.16 1.53
Net charge-offs to average loans 1.02 .81 1.01
Loans to deposits 93.40 94.00 94.52

Regulatory capital ratios
Tier 1 risk-based 9.21 9.55 9.30
Total risk-based 12.29 12.58 12.35
Leverage 6.69 6.84 6.84

Number of reporting bank holding
 companies 1,979 2,133 1,907

 2002 2003

 Account or ratio (1, 2) Q3 Q4 Q1

Balance sheet

Total assets 7,776,519 7,930,057 8,165,955

Loans 3,908,801 4,041,220 4,109,272
Securities and money market 2,847,808 2,846,398 3,000,025
Allowance for loan losses -70,264 -71,914 -71,668
Other 1,090,174 1,114,353 1,128,327

Total liabilities 7,156,132 7,295,544 7,517,055

Deposits 4,157,546 4,326,602 4,420,283
Borrowings 2,260,137 2,223,501 2,311,491
Other (3) 738,450 745,441 785,282

Total equity 620,387 634,513 648,900

Off-balance-sheet
Unused commitments to lend (4) 3,610,928 3,650,669 3,714,160
Securitizations outstanding (5) 287,846 295,001 284,429
Derivatives (notional value,
 billions) (6) 55,464 57,734 63,993

Income statement
Net income (7) 21,499 18,694 24,740
 Net interest income 60,093 61,626 62,209
 Provisions for loan losses 11,149 11,541 8,573
 Non-interest income 53,635 56,738 57,485
 Non-interest expense 71,522 79,002 74,268
 Security gains or losses 1,772 1,633 1,850

Ratios (percent)
Return on average equity 14.17 12.12 15.64
Return on average assets 1.12 .94 1.22
Net interest margin (8) 3.68 3.63 3.58
Efficiency ratio (7) 62.75 65.67 62.05
Nonperforming assets to loans and
 related assets 1.65 1.46 1.43
Net charge-offs to average loans 1.09 1.03 .84
Loans to deposits 94.02 93.40 92.96

Regulatory capital ratios
Tier 1 risk-based 9.33 9.21 9.33
Total risk-based 12.38 12.29 12.42
Leverage 6.79 6.69 6.72

Number of reporting bank holding
 companies 1,946 1,979 2,036

 2003

 Account or ratio (1, 2) Q2 Q3 Q4

Balance sheet

Total assets 8,661,400 8,683,368 8,819,467

Loans 4,261,680 4,332,719 4,393,666
Securities and money market 3,207,814 3,166,019 3,285,907
Allowance for loan losses -71,955 -71,369 -72,206
Other 1,263,861 1,255,999 1,212,100

Total liabilities 7,988,409 8,003,351 8,123,613

Deposits 4,565,704 4,570,537 4,674,108
Borrowings 2,504,626 2,549,138 2,610,429
Other (3) 918,082 883,677 839,076

Total equity 672,991 680,017 695,854

Off-balance-sheet
Unused commitments to lend (4) 3,756,486 3,887,356 4,097,594
Securitizations outstanding (5) 285,286 290,328 298,348
Derivatives (notional value,
 billions) (6) 68,222 69,411 72,870

Income statement
Net income (7) 26,312 27,228 28,334
 Net interest income 63,106 63,846 65,051
 Provisions for loan losses 8,429 7,113 7,417
 Non-interest income 61,785 61,495 64,265
 Non-interest expense 77,631 78,122 81,011
 Security gains or losses 2,671 579 670

Ratios (percent)
Return on average equity 16.12 16.41 16.71
Return on average assets 1.25 1.25 1.30
Net interest margin (8) 3.50 3.43 3.46
Efficiency ratio (7) 62.64 62.25 62.32
Nonperforming assets to loans and
 related assets 1.34 1.24 1.16
Net charge-offs to average loans .80 .75 .83
Loans to deposits 93.34 94.80 94.00

Regulatory capital ratios
Tier 1 risk-based 9.29 9.51 9.55
Total risk-based 12.30 12.52 12.58
Leverage 6.74 6.73 6.84

Number of reporting bank holding
 companies 2,064 2,120 2,133

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) 1999 2000 2001

Balance sheet

Total assets 5,037,884 5,404,222 5,746,706

Loans 2,642,839 2,874,638 2,878,573
Securities and money market 1,739,572 1,818,397 2,009,620
Allowance for loan losses -44,054 -47,171 -53,904
Other 699,527 758,358 912,417

Total liabilities 4,674,181 5,004,053 5,311,719

Deposits 2,635,845 2,795,936 2,966,151
Borrowings 1,586,963 1,777,262 1,821,140
Other (3) 451,373 430,855 524,428

Total equity 363,703 400,169 434,987

Off-balance-sheet
Unused commitments to lend (4) 2,870,114 3,065,766 3,226,898
Securitizations outstanding (5) n.a. n.a. 269,056
Derivatives (notional value,
 billions) (6) 37,746 43,416 47,833

Income statement
Net income (7) 63,666 58,801 50,202
 Net interest income 144,859 149,598 160,597
 Provisions for loan losses 17,173 23,167 34,434
 Non-interest income 154,461 176,137 167,136
 Non-interest expense 185,306 210,902 216,214
 Security gains or losses 2,219 -585 4,099

Ratios (percent)
Return on average equity 18.68 15.82 12.01
Return on average assets 1.33 1.13 .89
Net interest margin (8) 3.59 3.42 3.34
Efficiency ratio (7) 60.45 62.48 63.04
Nonperforming assets to loans and
 related assets .89 1.16 1.53
Net charge-offs to average loans .61 .74 1.03
Loans to deposits 100.27 102.81 97.05

Regulatory capital ratios
Tier 1 risk-based 8.06 8.14 8.17
Total risk-based 11.29 11.42 11.55
Leverage 6.61 6.40 6.19

 2002

 Account or ratio (2, 9) 2002 2003 Q2

Balance sheet

Total assets 6,066,493 6,666,488 5,877,749

Loans 3,043,955 3,249,806 2,884,503
Securities and money market 2,220,356 2,553,531 2,185,616
Allowance for loan losses -57,642 -57,004 -55,914
Other 859,824 920,156 863,544

Total liabilities 5,596,714 6,159,340 5,421,428

Deposits 3,191,827 3,427,923 2,978,617
Borrowings 1,960,517 2,242,425 1,937,932
Other (3) 444,370 488,992 504,880

Total equity 469,778 507,148 456,321

Off-balance-sheet
Unused commitments to lend (4) 3,373,532 3,781,455 3,284,565
Securitizations outstanding (5) 279,632 280,221 270,738
Derivatives (notional value,
 billions) (6) 57,320 72,295 52,220

Income statement
Net income (7) 65,442 82,953 16,621
 Net interest income 176,014 182,758 44,051
 Provisions for loan losses 36,981 26,799 9,041
 Non-interest income 164,079 185,195 40,345
 Non-interest expense 206,447 218,514 50,241
 Security gains or losses 4,474 5,104 552

Ratios (percent)
Return on average equity 14.56 17.21 14.76
Return on average assets 1.11 1.28 1.14
Net interest margin (8) 3.51 3.30 3.56
Efficiency ratio (7) 59.42 58.63 58.92
Nonperforming assets to loans and
 related assets 1.55 1.18 1.64
Net charge-offs to average loans 1.19 .95 1.20
Loans to deposits 95.37 94.80 96.84

Regulatory capital ratios
Tier 1 risk-based 8.43 8.68 8.56
Total risk-based 11.92 12.11 12.01
Leverage 6.18 6.27 6.38

 2002 2003

 Account or ratio (2, 9) Q3 Q4 Q1

Balance sheet

Total assets 5,969,920 6,066,493 6,220,563

Loans 2,937,799 3,043,955 3,076,486
Securities and money market 2,242,632 2,220,356 2,331,105
Allowance for loan losses -56,363 -57,642 -57,049
Other 845,852 859,824 870,022

Total liabilities 5,510,255 5,596,714 5,742,702

Deposits 3,049,718 3,191,827 3,247,738
Borrowings 2,013,970 1,960,517 2,023,682
Other (3) 446,568 444,370 471,283

Total equity 459,665 469,778 477,861

Off-balance-sheet
Unused commitments to lend (4) 3,335,157 3,373,532 3,423,912
Securitizations outstanding (5) 274,012 279,632 267,113
Derivatives (notional value,
 billions) (6) 55,011 57,320 63,536

Income statement
Net income (7) 16,513 13,949 19,319
 Net interest income 42,896 45,009 44,896
 Provisions for loan losses 9,660 9,839 7,438
 Non-interest income 41,043 42,058 43,737
 Non-interest expense 50,420 55,787 52,153
 Security gains or losses 1,651 1,672 1,775

Ratios (percent)
Return on average equity 14.62 12.20 16.55
Return on average assets 1.12 .92 1.24
Net interest margin (8) 3.42 3.46 3.38
Efficiency ratio (7) 60.01 62.81 59.17
Nonperforming assets to loans and
 related assets 1.80 1.55 1.52
Net charge-offs to average loans 1.29 1.18 1.02
Loans to deposits 96.33 95.37 94.73

Regulatory capital ratios
Tier 1 risk-based 8.57 8.43 8.54
Total risk-based 12.05 11.92 12.04
Leverage 6.29 6.18 6.19

 2003

 Account or ratio (2, 9) Q2 Q3 Q4

Balance sheet

Total assets 6,589,174 6,600,308 6,666,488

Loans 3,168,988 3,222,116 3,249,806
Securities and money market 2,492,101 2,460,249 2,553,531
Allowance for loan losses -56,938 -56,135 -57,004
Other 985,023 974,078 920,156

Total liabilities 6,096,082 6,101,096 6,159,340

Deposits 3,360,549 3,353,428 3,427,923
Borrowings 2,161,088 2,204,271 2,242,425
Other (3) 574,446 543,398 488,992

Total equity 493,092 499,212 507,148

Off-balance-sheet
Unused commitments to lend (4) 3,452,041 3,574,967 3,781,455
Securitizations outstanding (5) 271,626 274,294 280,221
Derivatives (notional value,
 billions) (6) 67,636 68,799 72,295

Income statement
Net income (7) 20,423 20,829 22,382
 Net interest income 45,179 45,978 46,704
 Provisions for loan losses 7,198 5,871 6,292
 Non-interest income 46,952 46,020 48,485
 Non-interest expense 54,456 55,419 56,485
 Security gains or losses 2,353 450 525

Ratios (percent)
Return on average equity 17.08 17.11 18.03
Return on average assets 1.28 1.26 1.35
Net interest margin (8) 3.29 3.25 3.28
Efficiency ratio (7) 59.58 60.16 58.92
Nonperforming assets to loans and
 related assets 1.43 1.31 1.18
Net charge-offs to average loans .95 .87 .96
Loans to deposits 94.30 96.08 94.80

Regulatory capital ratios
Tier 1 risk-based 8.45 8.70 8.68
Total risk-based 11.87 12.12 12.11
Leverage 6.20 6.20 6.27

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) 1999 2000 2001

Balance sheet

Total assets 1,129,948 1,235,593 1,342,167

Loans 722,961 801,474 854,000
Securities and money market 315,988 336,212 374,253
Allowance for loan losses -10,085 -11,306 -12,350
Other 101,084 109,214 126,264

Total liabilities 1,033,372 1,128,098 1,221,663

Deposits 858,101 945,865 1,020,435
Borrowings 154,126 156,722 174,063
Other (3) 21,145 25,512 27,165

Total equity 96,576 107,495 120,504

Off-balance-sheet
Unused commitments to lend (4) 213,740 223,142 243,485
Securitizations outstanding (5) n.a. n.a. 4,567
Derivatives (notional value,
 billions) (6) 28 54 92

Income statement
Net income (7) 12,777 13,174 14,448
 Net interest income 41,923 45,233 47,754
 Provisions for loan losses 2,798 3,552 4,599
 Non-interest income 16,774 17,921 23,142
 Non-interest expense 37,103 40,393 45,582
 Security gains or losses 826 -10 796

Ratios (percent) 13.26 13.03 12.45
Return on average equity 1.17 1.12 1.13
Return on average assets 4.28 4.26 4.16
Net interest margin (8) 62.47 62.36 63.45
Efficiency ratio (7)
Nonperforming assets to loans and .68 .76 .96
 related assets .30 .32 .43
Net charge-offs to average loans 84.25 84.73 83.69
Loans to deposits

Regulatory capital ratios 12.19 11.85 12.18
Tier 1 risk-based 13.64 13.32 13.77
Total risk-based 8.59 8.54 8.74
Leverage

Number of other reporting bank
 holding companies 1,569 1,661 1,786

 2002

 Account (1, 10) 2002 2003 Q2

Balance sheet

Total assets 1,473,670 1,627,879 1,387,618

Loans 922,055 1,014,025 877,180
Securities and money market 426,523 474,916 395,588
Allowance for loan losses -13,725 -14,706 -12,962
Other 138,817 153,644 127,812

Total liabilities 1,337,591 1,478,068 1,258,648

Deposits 1,113,679 1,214,285 1,053,692
Borrowings 191,267 227,532 175,973
Other (3) 32,645 36,251 28,983

Total equity 136,079 149,811 128,970

Off-balance-sheet
Unused commitments to lend (4) 264,028 295,535 250,464
Securitizations outstanding (5) 4,942 4,893 4,350
Derivatives (notional value,
 billions) (6) 92 99 94

Income statement
Net income (7) 17,463 18,887 4,313
 Net interest income 52,925 55,173 13,291
 Provisions for loan losses 5,246 4,451 1,194
 Non-interest income 25,412 28,772 6,005
 Non-interest expense 48,296 52,893 11,982
 Security gains or losses 729 1,073 164

Ratios (percent) 13.68 13.26 13.78
Return on average equity 1.26 1.22 1.26
Return on average assets 4.25 3.98 4.27
Net interest margin (8) 60.73 62.33 62.37
Efficiency ratio (7)
Nonperforming assets to loans and 1.02 .97 .97
 related assets .46 .38 .42
Net charge-offs to average loans 82.79 83.51 83.25
Loans to deposits

Regulatory capital ratios 12.42 12.53 12.53
Tier 1 risk-based 14.06 14.26 14.15
Total risk-based 8.87 9.00 8.96
Leverage

Number of other reporting bank
 holding companies 1,923 2,077 1,851

 2002 2003

 Account (1, 10) Q3 Q4 Q1

Balance sheet

Total assets 1,438,498 1,473,670 1,524,324

Loans 903,953 922,055 942,134
Securities and money market 414,565 426,523 455,721
Allowance for loan losses -13,433 -13,725 -14,133
Other 133,414 138,817 140,602

Total liabilities 1,304,740 1,337,591 1,383,242

Deposits 1,089,210 1,113,679 1,148,153
Borrowings 182,911 191,267 199,804
Other (3) 32,619 32,645 35,286

Total equity 133,759 136,079 141,082

Off-balance-sheet
Unused commitments to lend (4) 262,323 264,028 275,666
Securitizations outstanding (5) 4,178 4,942 4,994
Derivatives (notional value,
 billions) (6) 111 92 103

Income statement
Net income (7) 4,546 4,270 4,688
 Net interest income 13,601 13,331 13,580
 Provisions for loan losses 1,394 1,486 1,051
 Non-interest income 6,425 6,820 6,876
 Non-interest expense 12,083 12,719 12,689
 Security gains or losses 263 185 301

Ratios (percent) 13.94 12.80 13.54
Return on average equity 1.29 1.18 1.26
Return on average assets 4.35 4.12 4.06
Net interest margin (8) 59.89 62.72 61.49
Efficiency ratio (7)
Nonperforming assets to loans and 1.02 1.02 1.13
 related assets .45 .53 .32
Net charge-offs to average loans 82.99 82.79 82.06
Loans to deposits

Regulatory capital ratios 12.53 12.42 12.57
Tier 1 risk-based 14.16 14.06 14.25
Total risk-based 8.97 8.87 8.96
Leverage

Number of other reporting bank
 holding companies 1,890 1,923 1,980

 2003

 Account (1, 10) Q2 Q3 Q4

Balance sheet

Total assets 1,573,027 1,583,049 1,627,879

Loans 970,419 985,317 1,014,025
Securities and money market 469,932 464,299 474,916
Allowance for loan losses -14,437 -14,697 -14,706
Other 147,112 148,130 153,644

Total liabilities 1,427,605 1,438,006 1,478,068

Deposits 1,176,226 1,186,247 1,214,285
Borrowings 214,356 216,481 227,532
Other (3) 37,023 35,278 36,251

Total equity 145,422 145,043 149,811

Off-balance-sheet
Unused commitments to lend (4) 285,583 291,655 295,535
Securitizations outstanding (5) 5,205 5,116 4,893
Derivatives (notional value,
 billions) (6) 110 104 99

Income statement
Net income (7) 4,915 4,798 4,486
 Net interest income 13,774 13,700 14,118
 Provisions for loan losses 1,137 1,098 1,166
 Non-interest income 7,559 7,230 7,107
 Non-interest expense 13,326 13,072 13,807
 Security gains or losses 431 132 209

Ratios (percent) 13.81 13.50 12.22
Return on average equity 1.28 1.23 1.12
Return on average assets 4.01 3.91 3.94
Net interest margin (8) 63.05 62.08 64.77
Efficiency ratio (7)
Nonperforming assets to loans and 1.09 1.03 .97
 related assets .37 .36 .49
Net charge-offs to average loans 82.50 83.06 83.51
Loans to deposits

Regulatory capital ratios 12.54 12.54 12.53
Tier 1 risk-based 14.23 14.26 14.26
Total risk-based 8.94 8.95 9.00
Leverage

Number of other reporting bank
 holding companies 2,008 2,064 2,077

4. Nonfinancial characteristics of all reporting bank holding
companies in the United States

Millions of dollars except as noted, not seasonally adjusted

 Account 1999 2000 2001

Bank holding companies that
 qualify as financial holding
 companies (11, 12)
Domestic
 Number n.a. 299 388
 Total assets n.a. 4,494,270 5,436,785
Foreign-owned (13)
 Number n.a. 9 10
 Total assets n.a. 502,506 621,442

Total U.S. commercial bank
 assets (14) 5,673,702 6,129,534 6,415,909

 By ownership
 Reporting bank holding companies 5,226,027 5,657,210 5,942,575
 Other bank holding companies 226,916 229,274 230,464
 Independent banks 220,759 243,050 242,870

Assets associated with nonbanking
 activities (12, 15)
Insurance n.a. n.a. 426,462
Securities broker-dealers n.a. n.a. n.a.
Thrift institutions 117,699 102,218 91,170
Foreign nonbank institutions 78,712 132,629 138,977
Other nonbank institutions 879,793 1,234,714 1,674,267

Number of bank holding companies
 engaged in nonbanking
 activities (12, 15)
Insurance n.a. n.a. 143
Securities broker-dealers n.a. n.a. n.a.
Thrift institutions 57 50 38
Foreign nonbank institutions 25 25 32
Other nonbank institutions 559 633 743

Foreign-owned bank holding
 companies (13)
Number 18 21 23
Total assets 535,024 636,669 764,411

Employees of reporting bank
 holding companies (full-time
 equivalent) 1,775,418 1,859,930 1,985,981

Assets of fifty large bank holding
 companies (9, 17)
Fixed panel (from table 2) 5,037,884 5,404,222 5,746,706
Fifty large as of reporting date 4,809,785 5,319,129 5,732,621
Percent of all reporting
 bank holding companies 77.50 79.60 77.10

 2002

 Account 2002 2003 Q2

Bank holding companies that
 qualify as financial holding
 companies (11, 12)
Domestic
 Number 434 451 411
 Total assets 5,916,835 6,605,627 5,643,267
Foreign-owned (13)
 Number 11 12 11
 Total assets 616,254 710,443 656,344

Total U.S. commercial bank
 assets (14) 6,897,447 7,398,689 6,572,090

 By ownership
 Reporting bank holding companies 6,429,738 6,941,741 6,107,717
 Other bank holding companies 227,017 219,402 226,558
 Independent banks 240,692 237,546 237,815

Assets associated with nonbanking
 activities (12, 15)
Insurance 350,633 411,927 386,590
Securities broker-dealers 630,851 636,854 695,814
Thrift institutions 107,422 133,057 53,938
Foreign nonbank institutions 145,344 170,600 149,674
Other nonbank institutions 561,712 705,949 466,371

Number of bank holding companies
 engaged in nonbanking
 activities (12, 15)
Insurance 86 102 92
Securities broker-dealers 47 51 47
Thrift institutions 32 27 37
Foreign nonbank institutions 37 41 35
Other nonbank institutions 880 1,034 798

Foreign-owned bank holding
 companies (13)
Number 26 28 24
Total assets 762,901 934,781 787,998

Employees of reporting bank
 holding companies (full-time
 equivalent) 1,992,559 2,034,551 2,000,084

Assets of fifty large bank holding
 companies (9, 17)
Fixed panel (from table 2) 6,066,493 6,666,488 5,877,749
Fifty large as of reporting date 6,032,000 6,666,488 5,861,542
Percent of all reporting
 bank holding companies 76.10 75.60 76.90

 2002 2003

 Account Q3 Q4 Q1

Bank holding companies that
 qualify as financial holding
 companies (11, 12)
Domestic
 Number 415 434 437
 Total assets 5,706,966 5,916,835 6,061,677
Foreign-owned (13)
 Number 11 11 11
 Total assets 689,804 616,254 648,017

Total U.S. commercial bank
 assets (14) 6,762,780 6,897,447 7,031,480

 By ownership
 Reporting bank holding companies 6,296,385 6,429,738 6,578,067
 Other bank holding companies 226,602 227,017 222,670
 Independent banks 239,793 240,692 230,743

Assets associated with nonbanking
 activities (12, 15)
Insurance 338,384 350,633 359,968
Securities broker-dealers 703,738 630,851 709,839
Thrift institutions 56,063 107,422 126,375
Foreign nonbank institutions 144,814 145,344 154,812
Other nonbank institutions 493,780 561,712 524,697

Number of bank holding companies
 engaged in nonbanking
 activities (12, 15)
Insurance 91 86 91
Securities broker-dealers 47 47 48
Thrift institutions 37 32 31
Foreign nonbank institutions 38 37 38
Other nonbank institutions 835 880 911

Foreign-owned bank holding
 companies (13)
Number 24 26 26
Total assets 827,867 762,901 799,540

Employees of reporting bank
 holding companies (full-time
 equivalent) 1,979,260 1,992,559 2,000,168

Assets of fifty large bank holding
 companies (9, 17)
Fixed panel (from table 2) 5,969,920 6,066,493 6,220,563
Fifty large as of reporting date 5,951,115 6,032,000 6,203,000
Percent of all reporting
 bank holding companies 76.50 76.10 76.00

 2003

 Account Q2 Q3 Q4

Bank holding companies that
 qualify as financial holding
 companies (11, 12)
Domestic
 Number 440 448 451
 Total assets 6,433,712 6,447,116 6,605,627
Foreign-owned (13)
 Number 11 11 12
 Total assets 732,695 729,244 710,443

Total U.S. commercial bank
 assets (14) 7,325,659 7,294,142 7,398,689

 By ownership
 Reporting bank holding companies 6,863,642 6,842,982 6,941,741
 Other bank holding companies 222,997 217,038 219,402
 Independent banks 239,020 234,122 237,546

Assets associated with nonbanking
 activities (12, 15)
Insurance 384,000 398,379 411,927
Securities broker-dealers 656,919 667,455 636,854
Thrift institutions 124,640 143,578 133,057
Foreign nonbank institutions 160,515 162,789 170,600
Other nonbank institutions 740,215 755,056 705,949

Number of bank holding companies
 engaged in nonbanking
 activities (12, 15)
Insurance 92 101 102
Securities broker-dealers 50 46 51
Thrift institutions 31 29 27
Foreign nonbank institutions 40 39 41
Other nonbank institutions 944 989 1,034

Foreign-owned bank holding
 companies (13)
Number 27 28 28
Total assets 946,847 947,932 934,781

Employees of reporting bank
 holding companies (full-time
 equivalent) 2,019,953 2,031,029 2,034,551

Assets of fifty large bank holding
 companies (9, 17)
Fixed panel (from table 2) 6,589,174 6,600,308 6,666,488
Fifty large as of reporting date 6,587,000 6,602,255 6,666,488
Percent of all reporting
 bank holding companies 76.10 76.00 75.60

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 of bank holding company
restatements to 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 assets of less than $150 million and with
only one subsidiary bank and (2) multibank holding companies
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 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.

(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 vehicles in which
bank holding companies retain some interest, whether through
recourse or seller-provided credit enhancements or by
servicing the underlying assets. Securitization data
were first collected on the FR Y-9C report for June 2001.

(6.) The notional value of a derivative 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 holdings is the sum
of the notional values of each derivative contract
regardless of whether the bank holding company is a
payor or recipient 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 at the fifty large institutions and therefore
will not sum to Net income. The efficiency ratio is
calculated excluding nonrecurring 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 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.

(14.) Total assets of insured commercial banks in the United
States as reported in the commercial bank Call Report
(FFIEC 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.

(15.) Data for thrift, foreign nonbank, 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 and that has
been consolidated using generally accepted accounting
principles. Data for securities broker-dealers are net
assets (that is, total assets, excluding intercompany
transactions) of brokerdealer 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 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 of Golden State Bancorp (a thrift
institution 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.
COPYRIGHT 2004 Board of Governors of the Federal Reserve System
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Federal Reserve Bulletin
Date:Mar 22, 2004
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