FRB: Profits and Balance Sheet Developments at U.S. Commercial Banks in 2005, Table A.1.E., Continued

A.1.--Continued
Item	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005
E. Banks not ranked among the 1,000 largest by assets--Continued
	Effective interest rate (percent)¹
Rates earned
Interest-earning assets	8.37	8.50	8.35	8.05	8.44	7.94	6.79	5.94	5.73	6.23
Taxable equivalent	8.50	8.63	8.48	8.18	8.56	8.05	6.91	6.05	5.84	6.33
Loans and leases, gross	9.75	9.80	9.69	9.28	9.51	9.03	7.83	7.08	6.72	7.18
Net of loss provisions	9.47	9.49	9.34	8.89	9.14	8.59	7.39	6.72	6.45	6.95
Securities	6.14	6.26	6.04	5.88	6.15	5.86	5.03	3.87	3.74	3.87
Taxable equivalent	6.52	6.65	6.46	6.29	6.54	6.28	5.43	4.26	4.11	4.24
Investment account	6.14	6.26	6.04	5.89	6.15	5.86	5.02	3.87	3.73	3.87
U.S. Treasury securities and U.S. government agency obligations (excluding MBS)	n.a.	n.a.	n.a.	n.a.	n.a.	5.97	4.80	3.74	3.39	3.53
Mortgage-backed securities	n.a.	n.a.	n.a.	n.a.	n.a.	6.20	5.47	3.58	3.90	4.18
Other	n.a.	n.a.	n.a.	n.a.	n.a.	5.29	4.87	4.43	4.18	4.16
Trading account	6.47	6.33	5.26	3.60	4.01	6.43	15.38	2.89	18.95	7.52
Gross federal funds sold and reverse RPs	5.34	5.51	5.36	4.96	6.25	3.83	1.63	1.08	1.32	3.21
Interest-bearing balances at depositories	5.63	5.62	5.67	5.69	6.38	4.56	2.68	1.96	2.03	3.21

Rates paid
Interest-bearing liabilities	4.49	4.61	4.60	4.28	4.80	4.40	2.92	2.13	1.87	2.43
Interest-bearing deposits	4.44	4.54	4.53	4.22	4.67	4.32	2.78	2.02	1.75	2.29
In foreign offices	5.34	4.77	5.08	4.34	5.13	3.97	1.67	.85	1.04	2.86
In domestic offices	4.44	4.53	4.53	4.22	4.67	4.32	2.79	2.02	1.75	2.29
Other checkable deposits	2.41	2.46	2.44	2.28	2.47	1.97	1.16	.78	.69	.99
Savings (including MMDAs)	3.26	3.36	3.39	3.21	3.56	2.81	1.72	1.13	1.04	1.53
Large time deposits²	5.48	5.53	5.53	5.21	5.89	5.53	3.62	2.78	2.47	3.22
Other time deposits²	5.61	5.66	5.63	5.25	5.70	5.60	3.88	2.96	2.55	3.04
Gross federal funds purchased and RPs	5.11	5.22	4.99	4.73	5.69	3.92	1.85	1.31	1.45	2.89
Other interest-bearing liabilities	5.77	6.32	6.45	5.64	6.24	5.74	5.32	4.06	3.67	4.02
	Income and expense as a percentage of average net consolidated assets
Gross interest income	7.77	7.90	7.75	7.48	7.83	7.35	6.31	5.46	5.32	5.78
Taxable equivalent	7.89	8.02	7.87	7.60	7.95	7.45	6.41	5.56	5.42	5.88
Loans	5.68	5.86	5.80	5.62	5.99	5.75	5.01	4.47	4.35	4.76
Securities	1.80	1.76	1.59	1.58	1.57	1.32	1.16	.89	.87	.85
Gross federal funds sold and reverse RPs	.24	.24	.29	.22	.21	.20	.07	.05	.05	.11
Other	.04	.04	.06	.06	.05	.08	.06	.05	.05	.06

Gross interest expense	3.39	3.48	3.46	3.26	3.64	3.34	2.23	1.60	1.41	1.82
Deposits	3.22	3.28	3.25	3.02	3.30	3.08	1.98	1.41	1.22	1.58
Gross federal funds purchased and RPs	.08	.08	.07	.08	.12	.06	.03	.02	.02	.05
Other	.08	.11	.13	.15	.21	.20	.21	.17	.17	.19

Net interest income	4.38	4.42	4.28	4.22	4.20	4.01	4.08	3.86	3.91	3.96
Taxable equivalent	4.50	4.54	4.41	4.35	4.31	4.12	4.19	3.96	4.00	4.06

Loss provisions³	.25	.27	.29	.31	.32	.36	.35	.29	.23	.21

Non-interest income	1.42	1.41	1.52	1.44	1.32	1.31	1.39	1.47	1.38	1.34
Service charges on deposits	.44	.44	.42	.42	.43	.44	.45	.43	.43	.40
Fiduciary activities	.19	.20	.23	.26	.21	.25	.27	.28	.32	.33
Trading revenue	*	*	*	*	.01	*	*	*	*	*
Interest rate exposures	*	*	*	*	*	*	*	*	*	*
Foreign exchange rate exposures	*	*	*	*	*	*	*	*	*	*
Other commodity and equity exposures	*	*	*	*	*	*	*	*	*	*
Other	.79	.77	.86	.75	.68	.62	.67	.76	.64	.61

Non-interest expense	3.70	3.69	3.74	3.73	3.58	3.55	3.57	3.56	3.52	3.49
Salaries, wages, and employee benefits	1.77	1.80	1.82	1.82	1.78	1.79	1.82	1.82	1.81	1.80
Occupancy	.49	.49	.49	.49	.47	.47	.46	.45	.45	.44
Other	1.44	1.40	1.43	1.42	1.32	1.29	1.28	1.28	1.26	1.25

Net non-interest expense	2.28	2.28	2.23	2.29	2.26	2.24	2.18	2.09	2.14	2.15

Gains on investment account securities	.01	.01	.02	*	-.01	.04	.05	.04	.01	*

Income before taxes and extraordinary items	1.85	1.89	1.79	1.62	1.61	1.45	1.60	1.53	1.55	1.60
Taxes	.59	.59	.53	.47	.45	.39	.41	.38	.37	.38
Extraordinary items, net of income taxes	*	*	*	*	*	*	-.01	*	*	*

Net income	1.26	1.30	1.26	1.15	1.17	1.06	1.18	1.14	1.17	1.22
Cash dividends declared	.64	.74	.82	.70	.79	.64	.68	.67	.64	.67
Retained income	.62	.56	.44	.45	.38	.42	.49	.47	.54	.55

Memo: Return on equity	12.37	12.53	12.02	11.26	11.52	10.17	11.46	10.96	11.24	11.58

1. When possible, based on the average of quarterly balance sheet data reported on schedule RC-K of the quarterly Call Report. Return to table

2. Before 1997, large time deposit open accounts were included in other time deposits. Return to table

3. Includes provisions for allocated transfer risk. Return to table

* In absolute value, less than 0.005 percent.

n.a. Not available.

MMDA Money market deposit account.

RP Repurchase agreement.

MBS Mortgage-backed securities. Return to text