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Managing the Crisis: The FDIC and RTC Experience

Chronological Overview:
Guide to the Chapters

Beginning with 1980, each year is presented in a similar format. Each of the chapter elements is discussed below. Unless otherwise noted, information was derived from the annual reports

Each chapter includes an FDIC at a Glance chart. It presents primary data elements of the year and the preceding year and shows the percentage changes between the years. A summary chart with information for all years 1980-2003 is shown below.

 
FDIC at a Glance ($ in Millions)
  12/31/XX 12/31/XX Percent Change
Number of Bank Failures

See A

   
Assistance to Open Banks See B    
Total Failed and Assisted Banks See C    
Total Assets of Failed and Assisted Banks See D    
Losses on Failed and Assisted Banks See E    
Losses as a Percent of Total Assets See F    
Assets in Liquidation See G    
FDIC Staffing See H    
Number of Problem Banks See I    
Deposit Insurance Fund Balance See J    
Deposit Insurance Fund Balance
as a Percent of Insured Deposits
See K    
Savings Insurance Fund Balance See L    
Savings Insurance Fund Balance as a Percent of Insured Deposits See M    

Source: FDIC, 1980 Annual Report and Reports from FDIC Division of Finance and FDIC Division of Research and Statistics.

A. Number of Bank Failures

This number represents the total number of banks that actually failed. Back to Table

B. Assistance to Open Banks

This number represents the number of banks that were provided financial assistance but were not actually closed and placed into receivership. Significant cases are discussed in the relevant years. Assistance to Open Banks includes assistance to commercial and mutual savings banks. Back to Table

C. Total Failed and Assisted Banks

This is the total of A. and B. Back to Table

D. Total Assets of Failed and Assisted Banks

Total assets is a universal measure of the size of financial institutions and indicates the relative size of the problems handled by the FDIC. Back to Table

E. Estimated Losses on Failed and Assisted Banks during the Year

This number represents the estimated net loss to the FDIC on the banks that failed in that year. The figure is determined by calculating actual disbursements and subtracting actual and estimated recoveries. This figure is routinely adjusted with updated information from new appraisals and asset sales, which ultimately affect the asset values and the projected recoveries. All estimates are based upon the latest data available and are as of December 31, 2003. For terminated receiverships, the loss figure listed represents the actual loss. This applies to all receiverships prior to 1988. Back to Table

F. Estimated Losses as a % of Total Assets

This number is roughly indicative of the FDICs efficiency in disposing of failing institutions and their assets, although differences in failed bank profiles, asset types, and economic conditions also affect the recovery rate. Back to Table

G. Assets in Liquidation

This number is the total of assets held by the FDIC for liquidation. It is a book value number only and does not indicate estimated asset values. Back to Table

H. FDIC Staffing

This number is the total of FDIC staff, including both permanent and temporary employees. Each chapter includes a graph indicating staffing trends and divisional totals for that particular year. Back to Table

I. Number of Problem Banks

This is the number of open commercial banks in each year which are given a composite CAMEL rating by bank examiners of 4 or 5. The CAMEL rates each element of Capital, Assets, Management, Earnings, and Liquidity from 1 to 5, with 1 being the best and 5 being the worst. A composite rating is then assigned, and banks in the two lowest categories are placed on the FDICs problem bank list. Back to Table

J. Bank Insurance Fund Balance

Through 1988, this is the amount of money in the deposit insurance fund. Beginning in 1989, it is the amount of money in the Bank Insurance Fund (BIF) only and does not include the Savings Association Insurance Fund (SAIF). Back to Table

K. Bank Insurance Fund Balance as a % of Insured Deposits

This number is roughly representative of the FDICs ability to pay insured deposits of failed banks. A coverage ratio of 1.25% is considered most appropriate. Back to Table

L. Savings Association Insurance Fund Balance

This number is the amount of money in the Savings Association deposit insurance fund. Back to Table

M. Savings Association Insurance Fund Balance as a % of Insured Deposits

This number is roughly representative of the FDICs ability to pay insured deposits of failed savings associations. A coverage ratio of 1.25% is considered most appropriate. Back to Table

Notable Events

Significant events that occurred during the year are reflected here.

Economic/Banking Conditions

Regional and national economic trends are detailed here. The state of the banking industry during the year is discussed here, including the number of failures, number of problem institutions, and number of newly chartered institutions. The following tables detail the number and total assets of all FDIC insured commercial and savings banks in the year. They also lists the average Return on Assets and Return on Equity per type of institution per year.

Open Financial Institutions Insured by FDIC 1980-1994
 
Commercial Banks - FDIC Regulated
Item 19XX 19XX Percent Change
Number      
Total Assets      
Return on Assets      
Return on Equity      

Savings Banks – FDIC Regulated
Item 19XX 19XX Percent Change
Number      
Total Assets      
Return on Assets      
Return on Equity      
 
Savings Associations – FHLBB Regulated
Item 19XX 19XX Percent Change
Number      
Total Assets      
Return on Assets      
Return on Equity      

Source: Reports from FDIC Division of Research and Statistics.

Open Financial Institutions Insured by FDIC 1995-2003

BIF Members
  XXXX XXXX Percent Change
Number      
Total Assets      
Return on Assets      
Return on Equity      

SAIF Members
  XXXX XXXX Percent Change
Number      
Total Assets      
Return on Assets      
Return on Equity      
US Branches of Foreign Banks      

Source: FDIC Quarterly Banking Profile.

Bank Failures and Assistance to Open Banks

This section provides information about the failed and assisted institutions in the year. Transaction types and significant resolutions are discussed where appropriate. The following table outlines the failures and assisted transactions by transaction type. It shows the number of transactions, the total assets, and the estimated loss by type. The expected loss on the failed institutions was last estimated on December 31, 2003.

Estimated Losses by Transaction Type
Transaction
Type
Number
of
Transactions
Total Assets Estimated Loss
as of 12/31/03
Estimated Losses as a
Percent of Assets
OBAs        
P&As        
IDTs        
Payoffs        
Totals        

Payments to Depositors and Other Creditors

This section contains information concerning the number of failing bank and assisted transactions by type of transaction since the FDIC began operations in 1934. Information detailing the amount of disbursements made by the FDIC and the recoveries effected by the FDIC since 1934 is also shown. The total amount of deposits and the number of deposit accounts are shown for the failures and assistances in the year.

Interesting sidebars are often displayed as blue boxes throughout the text. These boxes provide additional information for clarification purposes and correspond to the topic immediately to the left or above the box.

Asset Disposition

Information about the FDICs assets in liquidation each year is located here. When applicable, information for the FSLIC Resolution Fund and the Savings Association Insurance Fund is detailed. Significant collection activity is noted in various years. The table below details the book value of assets in liquidation at the beginning of the year, assets acquired from failed institutions, principal collections, and the book value of assets in liquidation at the end of the year. The estimated value of the assets was obtained from the Division of Finance. The following chart is a graphical illustration of the asset mix.

FDIC End of the Year Assets in Liquidation

Asset Type 12/31/XX
Book Value
19XX
Assets Acquired
 19XX
Prin.
Coll.
 19XX
Write Downs
12/31/XX
Book Value
12/31/XX Est. Recovery Value
Loans            

Commercial Loans

           
Mortgage Loans            
Other Loans            
Real Estate Owned            
Charge-Offs            
Investments            
Judgments            
Securities            
Other Assets            
Other Assets/Judgments            
Totals            

Source: Reports from FDIC Division of Finance.

FDIC End of Year Asset Mix

Pie chart of the FDIC End of Year Asset Mix including OA/Judgments, Securities, Owned Assets, Investments, RE Mtges., Loans. This chart is illustratitive, and then contains no relevant data.

Chart 3-2

FDIC Staffing

 
Chart of the FDIC Staffing including Other, Liquidation, Supervision, and RTC. This chart is illustratitive, and then contains no relevant data.

Insurance Fund and Staffing

This section details changes over the previous year in the deposit insurance fund and the staffing levels. Staffing levels are listed for the Division of Supervision, the Division of Liquidation, other FDIC divisions, and the Resolution Trust Corporation. As division names changed, the chart to the left of this paragraph was updated. The chart shows the five-year trend of the staffing levels for the Division of Supervision, the Division of Liquidation, other FDIC divisions, and the Resolution Trust Corporation.

Private Resolutions

When there were private resolutions involving individual state insurance funds, the information is provided here.

Thrifts

In the years prior to the Resolution Trust Corporation, information concerning the thrift industry is displayed under this heading.

 

Resolution Trust Corporation

Each chapter includes an RTC at a Glance chart. It presents primary data elements of the year and the preceding year, and shows the percentage changes between the years. A summary chart with information for all years 1989-1994 is shown below.
 

RTC at a Glance

  12/31/XX 12/31/XX Percent Change
Number of Conservatorships at the beginning of the year      
Number of Conservatorships added during the year      
Thrifts in the ARP Program*      
Total of all thrift takeovers See A    
Conservatorships resolved during the year      
Thrifts in the ARP Program*      
Total of thrift resolutions      
Conservatorships at the end of the year      

Total Assets at takeover

  12/31/XX 12/31/XX Percent Change
Conservatorships      
Thrifts in the ARP Program      
Total See B    
Estimated Losses on thrift resolutions      
Estimated Losses as a Percent of Total Assets      

Assets in Liquidation

  12/31/XX 12/31/XX Percent Change
Conservatorships      
Receiverships See C    
Total      
RTC Staffing      

*Thrifts placed into the ARP program are included for clarity, although they were never placed into the conservatorship program. Back to Table

Source: RTC Annual Reports and Reports from FDIC Division of Research and Statistics.

A. Number of Conservatorships

This section recaps the number of thrift institutions at the beginning of the year; the number of thrifts added to the conservatorship program during the year; and the number of thrifts that were taken over but not placed into conservatorship. The result of the activity during the year yields the total number of thrifts taken over in the year. Back to Table

B. Total Assets at Takeover

This section recaps the total assets of the failing thrifts at the time of takeover whether they were placed into conservatorship or resolved through the ARP program. This section also details the total estimated losses on the thrifts that failed in that particular year. The estimated loss is determined by calculating actual disbursements and subtracting actual and estimated recoveries. This figure is routinely adjusted with updated information from new appraisals and asset sales, which ultimately affect the asset values and the project recoveries. the estimate of loss for all thrifts is derived from data obtained as of December 31, 1995. Back to Table

C. Assets in Liquidation

This section recaps the total dollar amount of assets in liquidation from both conservatorships and receiverships. The staffing number is also shown. Back to Table

Notable Events

Significant events that occurred in the year are reflected here.

S&L Resolutions

This section provides information concerning the S&L resolutions in the year. The following table outlines the S&L resolutions by transaction type. It shows the number of transactions, the total assets, and the estimated loss by type. The estimated loss is based on estimates as of December 31, 1995.

Estimated Losses by Transaction Type

Transaction
Type
Number
of
Transactions
Total Assets Estimated Loss as of 12/31/95 Estimated Losses
as a
Percent of Assets
P&As        
IDTs        
Payoffs        
Totals        

Source: Reports from FDIC Division of Research and Statistics.

The following table shows the Conservatorships and Receiverships at the beginning of the year and the changes throughout the year.

Conservatorships

Item

Total

In Conservatorship at 12/31/XX  
Conservatorships added in XXXX  
Subtotal  
Conservatorships resolved in XXXX (New Receiverships)  
Conservatorships remaining 12/31/XX  

Receiverships

Item

Total

Receiverships as of 12/31/XX  
New Receiverships that were previously Conservatorships in XXXX  
New Receiverships that were resolved through ARP in XXXX  
Total New Receiverships during XXXX  
Total Receiverships as of 12/31/XX  

Source: RTC Annual Reports.

Payments to Depositors and Other Creditors

This section contains information concerning the number of thrift resolutions by type of transaction since the RTC began operations in 1989. The total amount of deposits and the number of deposit accounts are shown for the thrift resolutions in the year.

Asset Disposition

Information about the RTCs assets in liquidation each year is located here. Where applicable, information concerning outside contracting is detailed. The table below shows the RTCs assets in liquidation and the following chart shows the asset mix.
 

RTC End of the Year Assets in Liquidation

Asset Type 12/31/XX
Total Book Value
Assets Acq'd During the Year
19XX
Collections
19XX
Losses
12/31/XX
Total Book Value
Memo Item

1-4 Family Mtges

           
Other Mtges            
Other Loans            
R/Estate Owned            
Other Assets            
Cash/Securities            
Totals            

RTC End of Year Asset Mix

RTC End of Year Asset Mix, inluding Cash/Securities, 1-4 Familly Mortgages, Other Mortgages, Other Assets, REO, Other Loans. This chart is illustratitive, and then contains no relevant data.

Funding and Staffing

This section details Congressional funding for the Resolution Trust Corporation during the year, as well as changes in staffing levels for the Resolution Trust Corporation.


Last Updated 01/05/05 Publicinfo@fdic.gov