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Twenty-Five Largest Banking Companies

Glossary

Financial information appearing in this report was acquired from SNL Securities, Inc., Charlottesville, Virginia. The following definitions are listed in the order in which they appear in the Company Tables of this report.

Loans (Gross)
The sum of loans held for investment and loans held for sale, both net of unearned income. (This is referred to in the text as "loans.")

Nonperforming assets
The sum of nonaccrual, renegotiated and loans and leases acquired through foreclosure. (Delinquent loans and leases still accruing are excluded.)

Net charge-offs
Total loans and leases removed from the balance sheet due to their uncollectability minus amounts recovered on loans and leases previously charged-off.

Return on assets
Annualized net income (including gains or losses on securities and extraordinary items) expressed as a percentage of average total assets.

Core ROA
Annualized income before income taxes and extraordinary items minus the after-tax portion (the assumed tax rate is 35 percent) of gains on sale of investment securities and nonrecurring income items as a percentage of average total assets.

Return on equity
Annualized net income (including gains or losses on securities and extraordinary items) as a percentage of average total equity capital.

Net interest margin
The annualized difference between interest and dividends earned on interest-bearing assets and interest paid to depositors and other creditors, expressed as a percentage of average interest-bearing assets.

Efficiency ratio
Noninterest expense minus foreclosed property expense minus amortization of intangibles, expressed as a percentage of the sum of net interest income plus noninterest income. This ratio measures the proportion of net operating revenues absorbed by overhead expenses -- the lower the ratio the greater the operating efficiency of the institution.

Loan growth rate
The annualized change in total loans and leases (net of unearned income and gross of reserves) from the previous quarter, expressed as a percentage of total loans and leases at the end of the previous quarter.

NPAs / assets
Nonperforming assets expressed as a percentage of total assets for the current quarter.

NCOs / average loans
Annualized net charge-offs expressed as a percentage of average total loans and leases.

Tier 1 capital*
Common equity capital, plus noncumulative perpetual preferred stock, plus minority interests in consolidated subsidiaries, minus goodwill and other ineligible intangible assets. (The amount of eligible intangible assets included in Tier 1 capital is limited in accordance with supervisory capital regulations.)

Tier 1 leverage ratio
Tier 1 capital expressed as a percentage of average tangible assets (total assets minus intangible assets).

Risk-based assets*
This figure is derived from the amounts of both on-balance and off-balance assets that institutions report in the various risk-weight buckets (0%, 20%, 50%, 100% or 200%) of call report Schedule RC-R. The consolidated amount is the product of the sums in the various categories multiplied by their respective risk weights.

Tier 1 RBC ratio
Tier 1 capital expressed as a percentage of risk-based assets.

Tier 2 capital*
The sum of allowable subordinated debt and limited life instruments (discounted by their years to maturity), plus cumulative preferred stock, plus mandatory convertible debt, plus loan reserves (limited to 1.25% of gross risk-weighted assets). (Tier 2 capital cannot exceed Tier 1 capital.)

Tier 3 capital*
The amount of regulatory capital required to offset market risk of the company.

Total RBC ratio
The sum of Tier 1, Tier 2 and Tier 3 capital expressed as a percentage of risk-based assets.

Market cap. ($ millions)
The market value of the companyís stock, derived by multiplying the stock price by the number of shares outstanding at the end of the period.

*Denotes items which do not appear in the 25 Largest but are parts of some of the reportís ratios.

Last Updated 11/14/2002 insurance-research@fdic.gov