Federal Reserve Bulletin, Volume 93, 2007 Current Bulletin

Report on the Condition of the U.S. Banking Industry: Second Quarter, 2006

Total assets of reporting bank holding companies rose 2.7 percent ($304 billion) over the second quarter, to $11.7 trillion. 1 Robust loan growth, concentrated in real estate, generated most of the increase. Earnings were dampened by continued pressure on net interest margins and modest growth in fee income, but benefited from loan expansion, reduced operating expenses, and securities gains. Credit quality remained excellent.

Loans expanded at a vigorous pace, rising 3.1 percent ($172 billion) for the quarter. Lending activity was particularly strong in the residential mortgage segment, which grew 3.7 percent ($71 billion) and accounted for more than 40 percent of loan growth. On balance sheet, commercial real estate loans--primarily loans secured by nonfarm, nonresidential properties and construction, land development, and other land loans--also continued to grow rapidly, rising 3.4 percent ($39 billion). Unused commitments to lend expanded 4.2 percent, to $5.8 trillion, with more than half of the increase driven by credit card lines.

Securities and money market assets (up 1.7 percent, or $73 billion) increased more slowly than loans. Growth was constrained by a substantial reduction ($48 billion) in money market holdings--with a fully offsetting decline in money market liabilities--at one bank holding company in which operations are predominantly concentrated at its securities broker-dealer subsidiary. Excluding this company, securities and money market assets increased 3 percent, slightly outpacing asset growth overall. Aggregate trading assets jumped 8.2 percent ($91 billion), mainly among the largest companies.

Deposit growth at 2.8 percent ($153 billion) kept pace with balance sheet expansion. Most growth was concentrated in foreign and time deposits, rates on which moved up. Core deposits--which exclude time deposits in denominations higher than $100,000, brokered deposits, and deposits booked in foreign offices--stayed roughly flat, with a rise in small time deposits partly offset by further declines in transaction accounts. While deposits funded more than half of asset growth, borrowings also advanced 2.6 percent ($98 billion).

Higher dividend payouts by larger companies and increases in unrealized losses in available-for-sale investment account securities that reduced the accumulated other comprehensive income component restrained equity growth for the quarter. Equity was up just 1 percent (roughly $9 billion). Given the more rapid advance in bank holding company assets, the equity to assets ratio dropped slightly from 8.19 percent to 8.06 percent. The tier 1 leverage, tier 1 risk-based, and total risk-based capital ratios, which do not reflect the unrealized losses on available-for-sale securities, also declined slightly, but remained sound at 6.28 percent, 8.94 percent, and 11.73 percent respectively.

Profitability remained strong in the quarter. Return on equity increased 26 basis points from the first quarter, to 15.17 percent, while the return on assets leveled off (up one basis point) to 1.22 percent. Net income improved 2.6 percent, to $35 billion. Reduced non-interest expenses, due to lower incentive-based compensation at the largest companies, and increased realized gains on securities sales (from a $474 million loss in the first quarter) bolstered earnings. Fee income also contributed to growth in earnings, benefiting from stronger mortgage-related and investment banking businesses, but was held back by declines in equity trading at the largest institutions. Despite further margin compression, net interest income grew 1.4 percent ($1 billion) on a larger average earning assets base. The net interest margin fell 7 basis points, to 2.89 percent, owing to a higher cost of deposit funding, a competitive lending environment, and a flattened yield curve. Although 60 percent of the companies reduced provisioning, aggregate provisions for loan losses increased $144 million (2.2 percent).

Nonperforming assets inched up from a low level, but the ratio of nonperforming assets to loans and related assets dropped slightly from 0.67 percent to 0.65 percent as loans expanded briskly. Net charge-offs increased as the moderating effect of last year's reform of the bankruptcy code on credit card losses continued to wane, but remained near historic lows at 0.48 percent of average loans.

1. This report presents aggregate time-series data drawn primarily from the FR Y-9C and FR Y-9LP regulatory report forms submitted to the Federal Reserve each quarter by large bank holding companies (defined within the report as "all reporting bank holding companies"). Beginning with the quarter ended March 31, 2006, the Federal Reserve updated the filing requirements for these reports. Most notably, it raised the asset threshold requiring the filing of the reports to $500 million from $150 million. The changes to the filing requirements mitigated regulatory reporting burden by reducing the number of required respondents substantially. Despite the large drop in the number of filers, reporting bank holding companies still represent a substantial majority of all bank holding company assets (when assets of nonreporting bank holding companies are approximated using data for bank subsidiary assets).   Return to text

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Bank Holding Company Tables

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 2001 2002 2003 2004 2005 2004 2005 2006
Q4 Q1 Q2 Q3 Q4 Q1 Q2
Balance sheet  
 
Total assets 7,487,107 7,989,910 8,880,558 10,339,801 11,333,100 10,339,801 10,710,570 10,956,171 11,257,415 11,333,100 11,352,835 11,656,441
 
Loans 3,835,237 4,083,169 4,435,653 5,109,493 5,659,808 5,109,493 5,192,276 5,363,646 5,525,962 5,659,808 5,561,703 5,733,310
Securities and money market 2,563,779 2,858,856 3,297,932 3,804,003 4,157,256 3,804,003 4,114,628 4,143,955 4,246,546 4,157,256 4,305,752 4,378,775
Allowance for loan losses -68,829 -74,782 -73,817 -74,589 -73,031 -74,589 -73,378 -72,949 -74,097 -73,031 -70,544 -70,759
Other 1,156,920 1,122,668 1,220,790 1,500,894 1,589,068 1,500,894 1,477,045 1,521,520 1,559,005 1,589,068 1,555,924 1,615,116
 
Total liabilities 6,900,721 7,347,694 8,176,868 9,452,623 10,393,243 9,452,623 9,819,629 10,034,472 10,327,938 10,393,243 10,422,650 10,717,404
 
Deposits 4,026,460 4,356,585 4,705,045 5,249,494 5,700,850 5,249,494 5,349,427 5,448,059 5,563,636 5,700,850 5,553,762 5,707,211
Borrowings 2,072,505 2,242,717 2,629,293 3,157,578 3,586,922 3,157,578 3,424,013 3,525,137 3,667,710 3,586,922 3,825,102 3,922,825
Other 3 801,756 748,392 842,531 1,045,552 1,105,471 1,045,552 1,046,189 1,061,277 1,096,593 1,105,471 1,043,787 1,087,367
 
Total equity 586,386 642,216 703,690 887,178 939,857 887,178 890,941 921,699 929,477 939,857 930,185 939,037
 
Off-balance-sheet  
Unused commitments to lend 4 3,482,236 3,651,209 4,097,531 4,823,332 5,437,902 4,823,332 4,929,516 5,064,198 5,245,819 5,437,902 5,520,728 5,754,362
Securitizations outstanding 5 276,717 295,001 298,348 353,978 389,726 353,978 366,430 367,887 375,142 389,726 394,600 388,744
Derivatives (notional value, billions) 6 48,261 57,866 72,883 89,115 99,077 89,115 92,621 96,653 98,281 99,077 109,261 117,992
 
Income statement  
Net income 7 67,208 86,013 107,885 113,317 133,047 28,653 32,598 33,072 34,543 32,837 34,266 35,148
Net interest income 224,127 245,251 256,562 278,075 295,789 70,822 72,434 73,153 74,848 75,363 72,726 73,737
Provisions for loan losses 40,665 45,089 33,052 28,608 32,618 7,793 6,580 6,824 9,972 9,243 6,662 6,806
Non-interest income 220,516 222,815 251,496 270,485 294,938 68,192 73,442 72,542 77,067 71,883 78,427 79,409
Non-interest expense 302,202 297,015 316,339 355,698 370,814 90,007 91,505 91,435 94,057 93,817 95,119 94,182
 
Memo  
Realized securities gains or losses 4,348 4,594 5,771 5,043 1,332 81 417 1,478 484 -1,047 -474 49
 
Ratios (percent)  
Return on average equity 11.98 14.14 16.24 14.35 14.68 13.27 14.71 14.73 15.04 14.23 14.91 15.17
Return on average assets .92 1.12 1.26 1.16 1.21 1.11 1.22 1.21 1.24 1.15 1.21 1.22
Net interest margin 8 3.61 3.74 3.51 3.37 3.09 3.29 3.16 3.08 3.07 3.05 2.96 2.89
Efficiency ratio 7 66.71 62.24 61.65 63.40 61.70 64.13 61.12 61.47 61.74 63.92 61.93 61.37
Nonperforming assets to loans and related assets 1.44 1.44 1.15 .82 .69 .82 .76 .71 .70 .69 .67 .65
Net charge-offs to average loans .91 1.04 .84 .67 .62 .71 .57 .52 .65 .72 .45 .48
Loans to deposits 95.25 93.72 94.27 97.33 99.28 97.33 97.06 98.45 99.32 99.28 100.14 100.46
 
Regulatory capital ratios  
Tier 1 risk-based 8.94 9.24 9.59 9.35 9.14 9.35 9.28 9.27 9.17 9.14 8.96 8.94
Total risk-based 11.93 12.30 12.61 12.22 11.87 12.22 12.15 12.03 11.91 11.87 11.75 11.73
Leverage 6.69 6.73 6.88 6.59 6.50 6.59 6.49 6.53 6.54 6.50 6.33 6.28
 
Number of bank holding companies 1,842 1,979 2,134 2,254 2,268 2,254 2,282 2,296 2,290 2,268 1,003 995

1. For quarters beginning on or after March 31, 2006, this report covers top-tier bank holding companies with consolidated assets of at least $500 million and some smaller top-tier firms that filed the FR Y-9C as required by Federal Reserve Banks for supervisory purposes or on a voluntary basis. Before March 31, 2006, aggregate data refer to top-tier bank holding companies with consolidated assets of at least $150 million and smaller multibank holding companies with debt outstanding to the general public or engaged in certain nonbanking activities.   Return to table
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.   Return to table
3. Includes minority interests in consolidated subsidiaries.   Return to table
4. Includes credit card lines of credit as well as commercial lines of credit.   Return to table
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.   Return to table
6. The notional value of a derivative is the reference amount of an asset on which an interest rate or price differential is applied when calculating the contractual payments. 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.   Return to table
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.   Return to table
8. Calculated on a fully-taxable-equivalent basis.   Return to table
Source: Federal Reserve Reports FRY-9C and FR Y-9LP, Federal Reserve National Information Center, and published financial reports.

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2. Financial characteristics of fifty large bank holding companies in the United States
Millions of dollars except as noted, not seasonallly adjusted
Account or ratio 1, 2 2001 2002 2003 2004 2005 2004 2005 2006
Q4 Q1 Q2 Q3 Q4 Q1 Q2
Balance sheet  
 
Total assets 5,896,783 6,256,824 6,926,108 7,963,241 8,645,888 7,963,241 8,226,990 8,440,266 8,515,432 8,645,888 8,970,662 9,282,941
 
Loans 2,968,905 3,153,028 3,404,117 3,945,799 4,351,995 3,945,799 4,001,893 4,121,526 4,241,636 4,351,995 4,456,423 4,598,577
Securities and money market 2,050,129 2,276,872 2,628,112 2,913,583 3,188,236 2,913,583 3,147,849 3,210,407 3,200,593 3,188,236 3,378,174 3,505,834
Allowance for loan losses -56,737 -61,324 -59,548 -59,656 -57,219 -59,656 -58,287 -57,595 -58,368 -57,219 -57,413 -57,432
Other 934,487 888,248 953,428 1,163,516 1,162,877 1,163,516 1,135,535 1,165,928 1,131,572 1,162,877 1,193,478 1,235,963
 
Total liabilities 5,446,449 5,767,409 6,393,247 7,271,689 7,918,171 7,271,689 7,531,639 7,725,734 7,797,427 7,918,171 8,212,994 8,518,106
 
Deposits 3,036,830 3,273,801 3,531,832 3,967,576 4,297,653 3,967,576 4,038,580 4,102,410 4,172,538 4,297,653 4,402,954 4,540,867
Borrowings 1,875,435 2,037,450 2,358,631 2,712,748 3,077,129 2,712,748 2,896,505 3,024,117 3,097,466 3,077,129 3,248,232 3,379,098
Other 3 534,184 456,158 502,784 591,365 543,390 591,365 596,555 599,207 527,423 543,390 561,808 598,141
 
Total equity 450,334 489,415 532,862 691,552 727,717 691,552 695,351 714,532 718,005 727,717 757,668 764,835
 
Off-balance-sheet  
Unused commitments to lend 4 3,242,175 3,391,837 3,807,849 4,490,684 5,050,405 4,490,684 4,582,671 4,702,953 4,867,314 5,050,405 5,166,727 5,387,508
Securitizations outstanding 5 271,825 289,905 293,046 348,986 384,996 348,986 361,524 363,221 370,518 384,996 391,756 385,937
Derivatives (notional value, billions) 6 48,144 57,746 72,692 88,671 98,749 88,671 92,136 96,300 97,994 98,749 108,963 117,631
 
Income statement  
Net income 7 53,411 68,756 87,858 90,408 106,132 23,455 26,168 25,326 27,761 26,881 29,074 29,689
Net interest income 166,848 183,553 192,195 206,579 215,352 52,844 53,289 53,668 54,200 54,204 55,423 56,645
Provisions for loan losses 35,767 39,400 28,573 25,197 29,128 6,748 5,765 6,035 9,031 8,297 6,034 6,141
Non-interest income 176,226 174,233 196,967 210,812 230,868 55,061 57,860 55,123 59,997 57,884 64,299 65,147
Non-interest expense 225,124 216,533 230,158 259,732 266,747 66,870 66,560 65,694 66,693 67,799 71,902 71,201
 
Memo  
Realized securities gains or losses 4,330 5,022 5,217 4,174 1,702 133 227 1,426 469 -420 -117 374
 
Ratios (percent)  
Return on average equity 12.38 14.74 17.43 14.83 15.05 13.90 15.10 14.46 15.57 15.04 15.51 15.60
Return on average assets .93 1.13 1.31 1.19 1.25 1.18 1.28 1.20 1.30 1.24 1.30 1.27
Net interest margin 8 3.39 3.56 3.36 3.21 2.92 3.17 3.01 2.91 2.89 2.86 2.83 2.76
Efficiency ratio 7 64.36 59.40 58.63 60.57 58.70 61.39 58.03 58.81 58.28 61.29 59.28 58.55
Nonperforming assets to loans and related assets 1.56 1.55 1.21 .84 .70 .84 .78 .72 .71 .70 .68 .66
Net charge-offs to average loans 1.03 1.20 .97 .79 .74 .83 .69 .62 .78 .86 .53 .56
Loans to deposits 97.76 96.31 96.38 99.45 101.26 99.45 99.09 100.47 101.66 101.26 101.21 101.27
 
Regulatory capital ratios  
Tier 1 risk-based 8.26 8.55 8.83 8.59 8.45 8.59 8.54 8.48 8.48 8.45 8.43 8.42
Total risk-based 11.61 11.98 12.21 11.86 11.56 11.86 11.81 11.61 11.62 11.56 11.55 11.56
Leverage 6.26 6.28 6.38 6.18 6.16 6.18 6.10 6.08 6.17 6.16 6.10 6.03

1. 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.   Return to table
2. 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.   Return to table
3. Includes minority interests in consolidated subsidiaries.   Return to table
4. Includes credit card lines of credit as well as commercial lines of credit.   Return to table
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.   Return to table
6. The notional value of a derivative is the reference amount of an asset on which an interest rate or price differential is applied when calculating the contractual payments. 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.   Return to table
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.   Return to table
8. Calculated on a fully-taxable-equivalent basis.   Return to table
Source: Federal Reserve Reports FRY-9C and FR Y-9LP, Federal Reserve National Information Center, and published financial reports.

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3. Financial characteristics of all other reporting bank holding companies in the United States
Millions of dollars except as noted, not seasonally adjusted
Account or ratio 1, 2 2001 2002 2003 2004 2005 2004 2005 2006
Q4 Q1 Q2 Q3 Q4 Q1 Q2
Balance sheet  
 
Total assets 1,277,090 1,401,227 1,527,308 1,686,798 1,846,496 1,686,798 1,717,675 1,767,744 1,816,198 1,846,496 1,533,908 1,559,106
 
Loans 812,179 875,986 952,217 1,081,393 1,222,260 1,081,393 1,108,765 1,155,948 1,194,967 1,222,260 1,015,838 1,044,850
Securities and money market 357,366 406,771 446,237 470,040 465,922 470,040 468,314 463,460 467,758 465,922 386,457 375,857
Allowance for loan losses -11,727 -13,021 -13,852 -14,533 -15,343 -14,533 -14,654 -14,901 -15,253 -15,343 -12,704 -12,897
Other 119,273 131,491 142,706 149,898 173,656 149,898 155,251 163,236 168,725 173,656 144,318 151,296
 
Total liabilities 1,162,232 1,271,919 1,387,290 1,531,062 1,678,565 1,531,062 1,562,077 1,606,086 1,651,157 1,678,565 1,393,756 1,416,917
 
Deposits 975,514 1,064,802 1,150,648 1,262,006 1,396,880 1,262,006 1,291,162 1,325,494 1,370,318 1,396,880 1,143,429 1,158,982
Borrowings 161,450 176,225 202,893 228,755 235,401 228,755 228,424 238,313 234,934 235,401 206,535 213,895
Other 3 25,267 30,892 33,748 40,302 46,284 40,302 42,491 42,280 45,905 46,284 43,792 44,040
 
Total equity 114,859 129,308 140,018 155,737 167,930 155,737 155,597 161,658 165,040 167,930 140,152 142,189
 
Off-balance-sheet  
Unused commitments to lend 4 229,887 247,466 276,769 319,277 367,264 319,277 332,445 345,663 359,746 367,264 329,823 336,227
Securitizations outstanding 5 4,567 4,358 4,159 2,877 2,885 2,877 2,792 2,667 2,697 2,885 2,844 2,806
Derivatives (notional value, billions) 6 89 88 94 144 103 144 98 99 100 103 86 88
 
Income statement  
Net income 7 13,659 16,469 17,626 19,244 21,306 4,831 5,154 5,433 5,617 5,102 4,472 4,774
Net interest income 45,676 50,475 52,266 56,545 62,698 14,723 15,049 15,484 16,116 16,049 13,294 13,443
Provisions for loan losses 4,461 5,058 4,262 3,179 3,191 763 684 735 892 881 578 631
Non-interest income 22,118 24,282 27,311 25,934 26,410 6,299 6,569 6,646 6,930 6,264 6,063 6,224
Non-interest expense 43,828 46,390 50,672 52,661 56,323 13,681 13,783 13,845 14,325 14,369 12,252 12,241
 
Memo  
Realized securities gains or losses 727 651 962 531 35 -3 98 61 66 -190 22 32
 
Ratios (percent)  
Return on average equity 12.54 13.55 13.08 13.16 13.24 12.60 13.25 13.70 13.74 12.29 12.91 13.52
Return on average assets 1.13 1.25 1.20 1.20 1.21 1.16 1.22 1.25 1.26 1.12 1.19 1.24
Net interest margin 8 4.20 4.25 3.97 3.93 3.97 3.94 3.97 3.98 4.0 3.93 3.94 3.89
Efficiency ratio 7 63.75 61.05 62.93 62.68 61.89 64.01 62.59 61.76 61.54 62.74 61.98 61.54
Nonperforming assets to loans and related assets .99 1.04 .99 .77 .69 .77 .75 .71 .69 .69 .67 .65
Net charge-offs to average loans .44 .46 .39 .25 .20 .30 .17 .19 .21 .24 .15 .18
Loans to deposits 83.26 82.27 82.75 85.69 87.50 85.69 85.87 87.21 87.20 87.50 88.84 90.15
 
Regulatory capital ratios  
Tier 1 risk-based 12.24 12.47 12.61 12.45 12.17 12.45 12.32 12.16 12.12 12.17 11.93 11.83
Total risk-based 13.80 14.08 14.30 14.07 13.72 14.07 13.92 13.72 13.67 13.72 13.50 13.42
Leverage 8.78 8.91 9.07 9.15 9.19 9.15 9.12 9.12 9.15 9.19 9.17 9.16
 
Number of bank holding companies 1,777 1,914 2,069 2,197 2,213 2,197 2,225 2,239 2,233 2,213 950 942

1. For quarters beginning on or after March 31, 2006, this report covers top-tier bank holding companies with consolidated assets of at least $500 million and some smaller top-tier firms that filed the FR Y-9C as required by Federal Reserve Banks for supervisory purposes or on a voluntary basis. Before March 31, 2006, aggregate data refer to top-tier bank holding companies with consolidated assets of at least $150 million and smaller multibank holding companies with debt outstanding to the general public or engaged in certain nonbanking activities.   Return to table
2. 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.   Return to table
3. Includes minority interests in consolidated subsidiaries.   Return to table
4. Includes credit card lines of credit as well as commercial lines of credit.   Return to table
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.   Return to table
6. The notional value of a derivative is the reference amount of an asset on which an interest rate or price differential is applied when calculating the contractual payments. 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.   Return to table
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.   Return to table
8. Calculated on a fully-taxable-equivalent basis.   Return to table
Source: Federal Reserve Reports FRY-9C and FR Y-9LP, Federal Reserve National Information Center, and published financial reports.

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4. Nonfinancial characteristics of all reporting bank holding companies in the United States
Millions of dollars except as noted, not seasonally adjusted
Account 2001 2002 2003 2004 2005 2004 2005 2006
Q4 Q1 Q2 Q3 Q4 Q1 Q2
Bank holding companies that qualify as financial holding companies 1, 2  
Domestic
Number 388 434 451 472 461 472 470 468 471 461 289 288
Total assets 5,436,743 5,917,109 6,605,686 7,456,569 8,184,677 7,456,569 7,643,649 7,898,330 8,068,742 8,184,677 8,468,806 8,721,000
Foreign-owned 3
Number 10 11 12 14 14 14 15 15 15 14 14 14
Total assets 621,442 616,254 710,441 1,376,333 1,561,580 1,376,333 1,526,168 1,516,408 1,625,281 1,561,580 1,689,001 1,710,637
 
Total U.S. commercial bank assets 6,416,080 6,897,215 7,397,903 8,207,714 8,994,064 8,207,714 8,544,414 8,676,294 8,857,369 8,994,071 9,286,848 9,554,923
 
By ownership  
Reporting bank holding companies 5,942,670 6,429,231 6,941,106 7,785,988 8,439,788 7,785,988 8,011,264 8,138,007 8,312,461 8,439,915 8,203,720 8,595,385
Other bank holding companies 230,467 227,016 219,222 209,115 220,133 209,115 204,891 206,367 211,840 220,143 740,544 609,203
Independent banks 242,944 240,968 237,575 212,611 334,143 212,611 328,259 331,920 333,067 334,013 342,584 350,335
 
Assets associated with nonbanking activities 2, 4  
Insurance 426,462 372,405 437,503 579,111 602,258 579,111 587,000 598,669 601,076 602,258 527,193 528,828
Securities broker-dealers n.a. 630,851 656,775 892,571 1,170,659 892,571 1,168,482 1,165,688 1,231,410 1,170,659 1,314,092 1,298,790
Thrft institutions 91,170 107,422 133,056 191,201 220,819 191,201 194,267 201,317 210,811 220,819 231,207 243,863
Foreign nonbank institutions 138,977 145,344 170,630 216,758 242,408 216,758 219,829 231,566 242,333 242,408 268,848 267,345
Other nonbank institutions 1,674,267 561,710 678,086 954,845 969,255 954,845 886,022 910,770 954,085 969,255 927,934 1,018,219
 
Number of bank holding companies engaged in nonbanking activities 2, 4  
Insurance 143 96 102 97 97 97 97 99 98 97 81 82
Securities broker-dealers n.a. 47 50 44 46 44 43 45 46 46 41 41
Thrift institutions 38 32 27 27 26 27 27 27 25 26 22 24
Foreign nonbank institutions 32 37 42 39 35 39 38 37 38 35 33 34
Other nonbank institutions 743 880 1,042 1,026 845 1,026 926 885 875 845 509 496
 
Foreign-owned bank holding companies 3  
Number 23 26 27 29 29 29 29 30 30 29 24 24
Total assets 764,411 762,901 934,085 1,537,208 1,747,797 1,537,208 1,690,119 1,698,197 1,811,451 1,747,797 1,822,367 1,847,094
 
Employees of reporting bank holding companies (full-time equivalent) 1,985,981 1,992,559 2,034,358 2,162,179 2,241,112 2,162,179 2,168,165 2,199,910 2,221,004 2,241,112 2,150,153 2,173,503
 
Assets of fifty large bank holding companies 5, 6
Fixed panel (from table 2) 5,896,783 6,256,824 6,926,108 7,963,241 8,645,888 7,963,241 8,226,990 8,440,266 8,515,432 8,645,888 8,970,662 9,282,941
Fifty large as of reporting date 5,732,621 6,032,000 6,666,488 7,940,955 8,631,229 7,940,955 8,206,462 8,417,847 8,489,633 8,631,229 8,970,662 9,282,941
Percent of all reporting bank holding companies 77 75 75 77 76 77 77 77 75 76 79 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 or restatements to bank holding company financial reports. Data for the most recent period may not include all late-filing institutions.
1. Excludes qualifying institutions that are not reporting bank holding companies.   Return to table
2. 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.   Return to table
3. 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.   Return to table
4. 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) or broker-dealer 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 under the Gramm-Leach-Bliley Act.   Return to table
5. 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.   Return to table
6. 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.   Return to table
Source: Federal Reserve Reports FRY-9C and FR Y-9LP, Federal Reserve National Information Center, and published financial reports.

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