Small Business and Micro Business Lending in the United States for Data Years 2006-2007 Office of Advocacy U.S. Small Business Administration June 2008 Small Business Research Summary No. 327 June 2008 Small Business and Micro Business Lending in the United States, for Data Years 2006-2007 by Victoria Jackson and Charles Ou, U.S. Small Business Administration, Office of Advocacy, Office of Economic Research, 2008. 124 pages. Introduction Annually, the Office of Advocacy prepares a study on institutional lending to small firms. The report examines small business lending in the economy by all lenders in the United States. The study provides a review of lending activities based on two types of data that lenders report to their regulating agencies—the Consolidated Reports of Condition and Income (Call Reports) for June 2007 and the Community Reinvestment Act (CRA) reports for 2006. Because data are available only by the size of the loan, small business loans are defined as business loans under $1 million, and micro business loans are those under $100,000. Those in the $100,000-$1 million category are referred to as larger small business loans. The report includes a discussion of developments in the small and micro business lending activities of institutional lenders. No attempt has been made to distinguish SBA guaranteed lenders in the analysis. Lenders are ranked based on their overall lending, not lending under SBA programs. Part one reviews developments apparent in the Call Report data from June 2006 through June 2007 and the CRA database for the year 2006. Part two provides directories of the top small and micro business lenders in the 50 states, the District of Columbia, and some U.S. territories. For the reader’s convenience, national tables for multi-billion-dollar banks and bank holding companies are presented first, followed by state tables. Beginning in 2005, the reports in this series were expanded to include savings banks and savings and loan associations, in addition to commercial banks. Geographic coverage has been expanded to include American Samoa, Guam, Puerto Rico, and the U.S. Virgin Islands. Overall Findings The pace of borrowing and lending in the small business loan markets in 2006-2007 was much stronger than in the previous year, although the demand for loans in the larger small business category ($100,000-$1 million) was subdued. Highlights • Small business loans outstanding (loans under $1 million) were valued at $684.6 billion for 24.5 million loans from 8,633 reporting depository institutions in the United States and territories in June 2007. This compares with a total of 21.3 million loans valued at $634 billion in the previous year. • The most significant change in micro business lending (loans under $100,000) was in the number of loans, which jumped by 13.7 percent after being relatively flat in the previous period. • The micro business loan market was dominated by the largest lenders (asset sizes of more than $10 billion) which represented 66.4 percent of the number and 58.2 percent of the value of these small loans as of June 2007. • The share of the number of larger small business loans ($100,000- $1 million) made by multi-billion-dollar lending institutions has declined since 2005, from 42.0 percent to 32.3 percent in 2007. • The CRA reports confirm that lending in these larger small business loans mirrors the findings in the Call Report data. In 2006, 791 CRA reporting institutions extended 11.6 million loans that were under $1 million, for a total of $289.8 billion in small business loans. This compares with $271.1 billion for a total of 7.9 million loans made by 774 lending institutions the previous year. Methodology This report observes the environment of lending institution activities using two types of data reported by financial institutions to their regulating agencies. Call Reports include information on the number and dollar amount of business loans outstanding in June 2007, and Community Reinvestment Act data cover lending to small businesses for calendar year 2006. The data reported are available by loan size, not by business size. Small business loans are defined here as loans under $1 million; mid-sized loans are those valued at $100,000 to under $1 million; and micro loans are loans of less than $100,000. Large lending institutions with total domestic assets of more than $10 billion are ranked and reported separately, under the presumption that they serve a national market. Rankings by state are made for all reporting lenders on the basis of the designated headquarters state of the reporting lending institutions. Two ranking methods are used, depending upon the availability of data. For lending institutions filing Call Reports, for which information on total assets and total business loans is available, four criteria are used as the basis for a lender’s performance ranking. A decile ranking is first computed for individual criteria (decile rankings range from 1 to 10). Lending institutions in the top 10 percent of all lenders in the state receive the maximum score of 10; banks in the lowest 10 percent receive a score of 1. Lenders that do not lend to small businesses (loans under $1 million) receive a 0. A summary ranking consolidating the four decile rankings is computed for each institution in the state rankings. Four top scores will sum to 40. To make the top score total 100, each score is multiplied by 2.5. To rank state lending using the CRA data, lenders are listed in order of the dollar amount of small business loans made in each state in 2006. Large institutions therefore appear at the top. Simple rankings are used for multi-billion-dollar lending institutions because a small number of lenders is involved. This report was peer-reviewed consistent with Advocacy’s data quality guidelines. More information on this process can be obtained by contacting the director of economic research at advocacy @sba.gov or (202) 205-6533. Ordering Information The full text of this report and summaries of other studies performed under contract with the U.S. Small Business Administration's Office of Advocacy are available on the Internet at www.sba.gov/advo/research. Copies are available for purchase from: National Technical Information Service 5285 Port Royal Road Springfield, VA 22161 (800) 553-6847 or (703) 605-6000 TDD: (703) 487-4639 www.ntis.gov Order number: PB2008-109313 Paper A07 ($60.00) Microfiche A02 ($27.00) CD-ROM A00 ($40.00) Download A00 ($25.00) To receive email notices of Advocacy's newsletter, press, regulatory news, and research, visit http://web.sba.gov/list. For really simple syndication, visit www.sba.gov/advo/rsslibrary.html. This report was developed under a contract with the Small Business Administration, Office of Advocacy, and contains information and analysis that was reviewed and edited by officials of the Office of Advocacy. However, the final conclusions of the report do not necessarily reflect the views of the Office of Advocacy. Foreword This edition of the Office of Advocacy’s annual study of lending to small and micro businesses by most depository institutions in the United States continues its expanded coverage. Included, in addition to banks, are other depository institutions, such as federal and state savings banks and savings and loans associations, and broader geographic coverage extended to the U.S. territories. The source information consists of two types of data reported by depository institutions to their respective regulating agencies—Call Reports for June 2007 and Community Reinvestment Act (CRA) reports for 2006. The smaller number of institutions required to submit CRA reports means that the coverage of small business lending activities under CRA reporting is reduced relative to Call Report coverage. This study covers both small business lending (loans of less than $1 million) and micro business lending (loans of less than $100,000, a subset of small business lending) for all reporting institutions, and for multi-billion-dollar lending institutions for the 2006–2007 period. Some information is also provided about the subset of larger small business loans between $100,000 and $1 million. The report provides data on the top institutions lending to small businesses in each state. Advocacy’s website contains additional data listing the lending activity of all lenders in the 50 states, the District of Columbia, and U.S. territories as expanded versions of tables 3A and 3B. The information is useful to both small businesses in search of loans and lenders who seek to compare their lending with that of their competitors. I encourage readers to use this report as a resource—and I congratulate the lending institutions that are doing a good job of meeting the need for capital in the small business community. The lending studies may also be viewed on the Office of Advocacy’s webpage, www.sba.gov/advo/research/lending.html. If you have questions or comments, write to the Office of Advocacy, U.S. Small Business Administration, Mail Code 3112, 409 Third St., S.W., Washington, D.C. 20416, or fax (202) 205-6928. Technical questions may be addressed to Dr. Charles Ou or Ms. Victoria Williams, at (202) 205-6530 or by e-mail: charles.ou@sba.gov or victoria.williams@sba.gov. We welcome your comments and suggestions. Chad Moutray Chief Economist and Director of Economic Research Contents Introduction 1 Part One: Developments in Small and Micro Business Lending 3 I. Findings from the June 2006-June 2007 Call Reports 3 A.Small Business Loans Outstanding from all Reporting Lending Institutions 3 B.Total Micro Business Loans Outstanding in the United States 3 C.Small and Micro Business Loans Outstanding from Multi-billion-dollar Lending Institutions 5 II. Findings from CRA Reporting Institutions for 2006 7 A.Small Business Lending by CRA Reporting Lending Institutions 7 B.Micro Business Lending by CRA Reporting Lending Institutions 7 Part Two: Directory of Top U.S. Small and Micro Business Lenders 9 Appendix: Data Notes 12 • Ranking Methodology and Table Descriptions 12 • Variables used in Tables 13 • Table Descriptions 14 • Data Tables 22 Introduction Access to credit is essential for small business survival, and the banking system is the most important institutional supplier of credit to small firms in the United States. Roughly 60.4 percent of all small firms used traditional credit (i.e. credit lines, loans, and/or capital leases) in 2003; 68.0 percent of them obtained credit from the banking sector, according to the 2003 Survey of Small Business Finances (SSBF).[1] The knowledge of how lending institutions are meeting small firm credit needs and which lenders are investing in small businesses is critical to the health and growth of small businesses. Such information not only helps small businesses save precious time in shopping efficiently for credit; it also provides lending institutions with information on the demand for and supply of small business credit, and helps them learn about the competition in the markets in which they participate. This annual edition of Small Business and Micro Business Lending in the United States provides current data on small and micro business loans to small firms and on the lending institutions that serve them.[2] For the third consecutive year, the study provides expanded coverage of small business lending in two respects. First, it includes other depository institutions such as savings banks and savings and loan associations in addition to commercial banks. Second, the geographic coverage includes territories: Guam, American Samoa, Puerto Rico, and the U.S. Virgin Islands. The study continues to examine both small business and micro business lending. The analysis is based on two types of data reported by lending institutions to their respective regulating agencies —the Call Reports for June 2007 (for information on loans outstanding) and Community Reinvestment Act (CRA) reports for 2006.[3] Data are available only for the size of the loan and not for the size of the business, so the following definitions are used: • Small business loans are defined as business loans under $1 million. • Micro business loans are defined as business loans under $100,000 (the subset of small business loans that constitutes the smallest loans). • Larger small business loans are loans of $100,000 to under $1 million (the subset of small business loans that includes larger loans). Part One discusses developments in small and micro business lending activities by lending institutions in the United States. The first section discusses developments apparent in the Call Report data; the second discusses developments based on the CRA database. Analysis in this study covers data for three years, from June 2005 through June 2007 for Call Reports and from 2004 through 2006 for CRA reports. Part Two provides directories of the top small and micro business lenders in the states using both the Call Report and CRA data. For the reader’s convenience, national tables for multi-billion- dollar lending institutions are presented before state tables for all lending institutions, not because these giants are more important in small business lending, but because the tables for bank holding companies (BHC) are shorter. While these two databases have limitations as indicators of both the supply of loans from lending institutions and the small business demand for loans, their usefulness cannot be denied—they are the only publicly available sources of information on the small business lending activities of individual lending institutions. Accessing the Study The current and all previous editions of Advocacy’s lending studies are available on the Internet at www.sba.gov/advo/research/lending.html. Paper and microfiche copies are also available for purchase from the National Technical Information Service, telephone (703) 487-4650. Suggestions Send written comments or suggestions to the Office of Advocacy, U.S. Small Business Administration, Mail Code 3112, 409 Third St., S.W., Washington, D.C. 20416, or by fax to (202) 205-6928. Technical questions may be addressed to Dr. Charles Ou or Ms. Victoria Williams, at (202) 205-6530 or by email: Charles.Ou@sba.gov or Victoria.Williams@sba.gov. Part One: Developments in Small and Micro Business Lending I. Findings from the June 2006–June 2007 Call Reports[4] A. Small Business Loans Outstanding from All Reporting Lending Institutions The pace of borrowing and lending in the small business loan markets was much more brisk in June 2006-June 2007 than in the previous year. On the whole, the total amount of small business loans (loans of less than $1 million) made by lending institutions showed larger increases in the more recent period. Small business loans outstanding totaled $684.6 billion as of June 2007, an increase of $50.6 billion or roughly 8.0 percent from June 2006, compared with an increase of 5.5 percent in the June 2005-June 2006 period (Tables A and B). Increases in both the amount and number were in all small business loan sizes, but the number of small business loans from $100,000 to $1 million increased the most over this period (Tables A and C.) Borrowing by larger corporations was moderate in 2007, as large corporations increased their use of internally generated funds, which lessened their need for investment. Increases in the dollar amount of business loans over $1 million were smaller than in the previous year, 11.7 percent compared with 12.4 percent in the June 2005-June 2006 period (Table B). Nonetheless, large corporations continued to contribute the most to total business borrowing over this period. B. Total Micro Business Loans Outstanding in the United States Activity in the smallest loan sizes—micro business loans—was more robust over this period, with increases in both the dollar amount and volume, as major business credit card lenders continued to promote small business credit cards. The most significant change in micro business lending occurred in the number of loans over the June 2006-June 2007 period, up 13.7 percent after remaining relatively flat in the previous period (Table C). The dollar amount of micro business loans increased by 9.4 percent, compared with 7.6 percent for loans of $100,000 to under $1 million, and with about 8.0 percent for all small business loans under $1 million (Tables B and C). Overall, the smallest loans accounted for the most change in dollar amounts over the June 2006-June 2007 period. Table A. Dollar Amount and Number of Small Business Loans, June 2005–June 2007, by Loan Size (Dollars in Billions, Numbers in Millions) __________________________________________________________________________________________________________________ Percent Change Loan Size 2005 2006 2007 June 2006– June 2007 __________________________________________________________________________________________________________________ Under $100,000 Dollars 138.4 146.0 159.7 9.4 Number 19.02 19.0 21.6 13.7 $100,000 to under $1 million 462.3 487.9 524.9 7.6 Number 1.98 2.23 2.9 31.8 Under $1 million Dollars 600.8 634.0 684.6 8.0 Number 21.00 21.3 24.5 15.0 Total Business Loans Dollars 1,680.8 1,848.4 2,023.9 9.5 __________________________________________________________________________________________________________________ Source: U.S. Small Business Administration, Office of Advocacy, Small Business Lending in the United States, various years, and special tabulations of the June 2006 Call Reports (Consolidated Reports of Condition and Income for U.S. banks and thrift institutions prepared for the Office of Advocacy by James Kolari, Texas A&M University, College Station, Texas). Table B. Percent Change in the Dollar Amount of Business Loans by Loan Size, June 2003–June 2007 ___________________________________________________________________________________________________________________ Loan size June 2003–June 2004 June 2004–June 2005 June 2005–June 2006 June 2006–June 2007 ___________________________________________________________________________________________________________________ Under $100,000 -0.5 1.9 5.5 9.4 $100,000 to Under $1 Million 7.2 4.8 5.5 7.6 Under $1 Million 5.3 4.1 5.5 8.0 More than $1 Million 4.6 11.1 12.4 11.7 ___________________________________________________________________________________________________________________ Source: U.S. Small Business Administration, Office of Advocacy, Small Business Lending in the United States, various years, and special tabulations of the June 2006 Call Reports (Consolidated Reports of Condition and Income for U.S. banks and thrift institutions prepared for the Office of Advocacy by James Kolari, Texas A&M University, College Station, Texas). Table C. Percent Change in the Number of Small Business Loans by Loan Size, ____________________________________________________________________________________________________________________ Loan size June 2003–June 2004 June 2004–June 2005 June 2005–June 2006 June 2006–June 2007 ____________________________________________________________________________________________________________________ Under $100,000 -11.1 24.8 0 13.7 $100,000 to Under $1 Million 6.6 5.0 12.8 31.8 Under $1 Million -9.4 22.6 1.2 15.0 ____________________________________________________________________________________________________________________ Source: U.S. Small Business Administration, Office of Advocacy, Small Business Lending in the United States, various years, and special tabulations of the June 2006 Call Reports (Consolidated Reports of Condition and Income for U.S. banks and thrift institutions prepared for the Office of Advocacy by James Kolari, Texas A&M University, College Station, Texas). C. Small and Micro Business Loans Outstanding from Multi-billion-dollar Lending Institutions The importance of lending institutions of different sizes in the small business loan markets is continuously affected by bank consolidations. The number of lending institutions—financial services holding companies and independent institutions filing Call Reports—declined from 7,563 to 7,465 between June 2006 and June 2007, especially for lenders with assets of less than $500 million, which declined by 147 (Table D).[5] Also, the number of the largest lending financial holding institutions with domestic assets exceeding $10 billion declined over the June 2006-June 2007 period, from 108 to 106, yet they accounted for 75.6 percent of total assets, and 65.2 percent of total business loans. These largest lenders continued to dominate the market for micro business loans under $100,000 where they represented 66.4 percent of the number and 58.2 percent of the loan value in this period (Table D). While the value of small loans made by these giants increased steadily, from 49.8 percent in 2005 to 58.2 percent in 2007, the same cannot be said for the number of loans outstanding, which was volatile in this period. The market for loans between $100,000 and $1 million issued by large lending institutions was somewhat less active. For example, the share of the dollar amount outstanding in this category barely increased, in line with the meager increase in the total assets share of these large institutions over the June 2006-June 2007 period (Table D). The share of the number of loans made in this category has experienced a continuous decline since 2005, from 42.0 percent in 2005 to 37.8 percent in 2006 to 32.3 percent in 2007. Table D. Share of Total Assets and Business Loans by Size of All U.S. Depository Institutions, June 2005–June 2007 (Percent, Except Figures for Number of Institutions)* ________________________________________________________________________________________________________________________________________________________________ Asset Size of Institutions ________________________________________________________________________________________________________________________________________________________________ Over $10 Billion Over $1 Billion $500 Million Under All Institutions $50 Billion to $50 Billion $10 Billion to $10 Billion to $1 Billion $500 Million and BHCs ________________________________________________________________________________________________________________________________________________________________ June 30, 2005 Number of Institutions 31 70 101 449 541 6,533 7,624 Micro Business Loans (Under $100,000) Amount 36.49 13.33 49.82 15.05 6.62 28.51 100.0 Number 52.00 17.98 69.98 13.86 8.83 7.33 100.0 Small Business Loans ($100,000-$1 Million) Amount 30.23 11.76 41.99 21.96 9.95 26.10 100.0 Number 30.72 11.33 42.05 21.25 9.35 27.36 100.0 Total Small Business Loans (under $1 Million) Amount 31.67 12.13 43.80 20.37 9.18 26.65 100.0 Number 49.99 17.35 67.34 14.55 8.88 9.22 100.0 Total Business Loans Amount 48.99 13.39 62.37 18.18 6.11 13.33 100.0 Total Domestic Assets Amount 58.77 15.00 73.77 13.06 3.92 9.25 100.0 June 30, 2006 Number of Institutions 34 74 108 473 591 6,391 7,563 Micro Business Loans (Under $100,000) Amount 38.98 13.67 52.65 14.55 7.07 25.63 100.0 Number 53.11 17.74 70.85 12.44 9.47 7.23 100.0 Small Business Loans ($100,000-$1 Million) Amount 30.29 11.99 42.28 22.46 10.17 25.00 100.0 Number 27.48 10.36 37.84 20.37 8.79 33.00 100.0 Total Small Business Loans (under $1 Million) Amount 32.30 12.37 44.67 20.66 9.45 25.22 100.0 Number 50.42 16.96 67.38 13.28 9.4 9.94 100.0 Total Business Loans Amount 50.68 13.33 64.02 17.56 6.12 12.31 100.0 Total Domestic Assets Amount 60.88 14.35 75.23 12.25 3.96 8.56 100.0 June 30, 2007 Number of Institutions 32 74 106 498 617 6,244 7,465 Micro Business Loans (Under $100,000) Amount 41.51 16.67 58.18 14.00 6.02 21.8 100.0 Number 49.00 17.40 66.39 19.85 7.62 6.4 100.0 Small Business Loans ($100,000-$1 Million) Amount 32.48 12.17 44.65 22.27 9.98 23.1 100.0 Number 23.57 8.75 32.32 21.71 7.24 38.7 100.0 Total Small Business Loans (under $1 Million) Amount 34.59 13.22 47.81 20.33 9.05 22.8 100.0 Number 46.00 16.38 62.38 20.07 7.57 10.0 100.0 Total Business Loans Amount 51.31 13.90 65.21 17.57 5.90 11.3 100.0 Total Domestic Assets Amount 61.31 14.27 75.58 12.29 3.99 8.14 100.0 ___________________________________________________________________________________________________________________________________________ * All members of a holding company are consolidated to the extent the linked IDs permit. Credit unions excluded. Source: U.S. Small Business Administration, Office of Advocacy, Small Business Lending in the United States, various years, and special tabulations of the June 2006 Call Reports (Consolidated Reports of Condition and Income for U.S. banks and thrift institutions prepared for the Office of Advocacy by James Kolari, Texas A&M University, College Station, Texas). II. Findings from CRA Reporting Institutions for 2006 A. Small Business Lending by CRA Reporting Lending Institutions This section presents a profile of the geographic activities of small business lending by large lending institutions (all of which are required to report under the Community Reinvestment Act program) in 2006.[7] CRA data provide information on the location of loans made by a lender during a period, for example, from January 1 through December 31 of a given year. A comparison of CRA and Call Report reporting institutions appears in Table E. Because of changes in reporting requirements, the number of lending institutions that submitted CRA reports numbered 791 (slightly higher than in 2005), compared with more than 1,500 in 2004.[7] These CRA reporting institutions accounted for 81.0 percent of the total assets, compared with 61.0 percent of the amount of the smallest loans and 58.0 percent of the larger small business loan amount. In 2006, 791 CRA-reporting institutions extended a total of $289.8 billion in 11.6 million small business loans under $1 million, compared with $271.1 billion for 7.9 million loans the previous year (Table F). Comparisons in micro lending over time are difficult using the CRA database because the number of banks required to report under the program changes. These CRA reporting lending institutions accounted for 81 percent of total domestic assets and 60 percent of small business loans (Table E).[8] Data from the CRA reports support the notion that larger small business loans dropped or changed little in both number and value over the 2004–2006 period. In short, the total dollar amount of the smallest loans increased, while the larger small business loan amount remained flat. B. Micro Business Lending by CRA Lending Institutions Multi-billion-dollar banks and other major lenders made 11.1 million micro business loans valued at $116.2 billion in 2006 (Table F). Total domestic assets for these lenders increased from $7.9 trillion (for 774 lenders) in 2005 to $8.7 trillion (for 791 lenders) in 2006.[9] The dollar amount and the number of loans outstanding increased continuously from 2004 to 2006. These lenders accounted for 40.1 percent of the dollar amount and 95.8 percent of the number of micro loans made in 2006. Table E. Comparison of Assets and Business Loans Outstanding for All Lending Institutions as Reported in Call Reports and by CRA-Reporting Institutions (Billions of Dollars) _____________________________________________________________________________________________________________________________________ Loan Size Call Report CRA-covered CRA/CRBs CRA/CRBs CRA/CRBs Institutions Institutions (Percent) (Percent) (Percent) (CRBs) 6/2007 (CRA) 6/2006 2006 2005 2004 _______________________________________________________________________________________________________________________________________ Micro Business Loans <$100,000* 159.7 98.1 0.61 0.59 0.70 Small Business Loans $100,000-$1 Million 523.9 304.9 0.58 0.65 0.78 Small Business Loans <$1 Million 683.6 413.0 0.60 0.64 0.76 Total Business Loans 2,023.9 1,657.2 0.82 0.79 0.87 Total Assets 10,808.2 8,704.0 0.81 0.77 0.84 Number of Lending Institutions 7,465 791 ________________________________________________________________________________________________________________________________________ *The figure for loans under $100,000 for CRA-reporting banks is likely to be an understatement because loans made by American Express Bank are excluded. The bank was not required to submit a CRA report after its reorganization in March 2004. Source: U.S. Small Business Administration, Office of Advocacy, Small Business Lending in the United States, various years, and special tabulations of the June 2006 Call Reports (Consolidated Reports of Condition and Income for U.S. banks and thrift institutions prepared for the Office of Advocacy by James Kolari, Texas A&M University, College Station, Texas). Table F. Amount and Number of Loans made by CRA Reporting Institutions in 2004–2006 (Amounts in Billions of Dollars) ___________________________________________________________________________________________________________________________ Loan Size Amount/Number 2004 2005 2006 ___________________________________________________________________________________________________________________________ Number of Banks/BHCs 1,506 774 791 Under $100,000 Amount 95.4 97.94 116.2 Number 7,532,061 7,458,720 11,115,437 $100,000-$1 Million Amount 196.89 173.17 173.6 Number 567,955 488,787 487,505 Under $1 Million Amount 292.30 271.11 289.8 Number 8,100,016 7,947,507 11,602,942 Total Assets Amount 8,016.59 7,947.48 8,704.0 Total Business Loans Amount 1,146.31 1,465.23 1,657.2 ___________________________________________________________________________________________________________________________ Source: U.S. Small Business Administration, Office of Advocacy, Small Business Lending in the United States, various years, and special tabulations of the June 2006 Call Reports (Consolidated Reports of Condition and Income for U.S. banks and thrift institutions prepared for the Office of Advocacy by James Kolari, Texas A&M University, and College Station, Texas). Part Two: Directory of Top U.S. Small and Micro Business Lenders Small business lending and borrowing are mostly local in nature: both the borrowers and the lending offices are located in the same community or in communities nearby. In an effort to provide information that will help small businesses shop more efficiently for credit and let lenders know about their competitors in small business lending, SBA’s Office of Advocacy prepares a directory of small and micro business lenders. The business lending performance of individual lending institutions is ranked for the national market (for multi-billion-dollar lenders) and in each state. Tables 1A through 2B rank multi-billion-dollar lenders in the national market using Call Report and CRA data. Table 3A through Table 4B list top small business lending institutions in individual states. Information for all reporting lenders (Tables 3A and 3B expanded) is available on the Advocacy website, www.sba.gov/advo/research/lending.html. Table 1A. Small Business Lending of Large Lending Institutions Based on Call Report Data, June 2007 Table 1A ranks the small business lending of the 100 largest lending institutions with total domestic assets of more than $10 billion.[10] Each lending institution is ranked from 1 to 100, 1 being the top for each of four variables. These variables then are totaled and re-ranked from 1 to 100. The top five small business lenders in June 2007, based on Call Report data, are American Express Bank Federal Savings Bank (FSB) (first in 2006), First Citizen Bancshares Inc., (fourth in 2006), Regions Financial Corporation (third in 2006), Synovus Financial Corporation (fifth in 2006), and BB&T Corporation (sixth in 2006). Table 1B. Micro Business Lending of Large Lending Institutions Based on Call Report Data, June 2007 Table 1B ranks the micro business lending of the 100 largest lending institutions with total domestic assets of more than $10 billion.[11] Each lending institution is ranked from 1 to 100, (one being the top) for each of four variables. These variables then are totaled and reranked from 1 to 100; the remaining lending institutions are not ranked because of missing data or lack of micro business lending activity. The top five lenders are American Express Bank FSB (first in 2006), Capital One Financial Corporation (second in 2006), JPMorgan Chase and Co. (fifth in 2006), Wells Fargo (fourth in 2006), and Citigroup, Inc. (third in 2006). Table 2A. Small Business Lending of Large Lending Institutions Based on CRA Data, 2006 Table 2A ranks multi-billion-dollar lending institutions’ small business lending using CRA data. Information from Call Reports was employed in combination with the CRA data to perform the four-variable ranking. As in the previous studies, data covering the reporting members of a holding company were first consolidated to generate estimates for the owning holding company. Since CRA data provide location-specific information for a lender’s small business lending, information on the number of states (and territories) in which the lending institution has lending operations is also provided. Eighty-seven of the largest lending institutions with small business loans were ranked. The five top small business lenders for 2006, using the combined ranking criteria, are American Express Bank FSB, Capital One FSB (second in 2005), First Citizen Bancshares Inc., (fourth in 2005), Regions Financial Corporation (first in 2005), and Synovus Financial Corporation (third in 2005). Table 2B. Micro Business Lending of Large Banks and BHCs Based on CRA Data, 2006 Table 2B ranks large lenders’ micro business lending using CRA data. Information from Call Reports was employed in combination with the CRA data to perform the four-variable ranking. As in the previous studies, data from the members of a holding company were first consolidated to generate estimates for the owning company. CRA location-specific information on lenders’ small business lending was the source for the data on the number of states in which the lender has substantial lending operations. Eighty-seven large lending institutions were ranked. The five top small business lenders for 2006 using CRA data are American Express Bank FSB, Capital One FSB (first in 2005), JPMorgan Chase & Co. (fifth in 2005), Wells Fargo and Company (third in 2005), and GE Money Bank (11th in 2005).[12] Table 3A. Top Lenders to Small Businesses in the State Based on Call Report Data, June 2007 Table 3A provides a list of the top institutions lending to small businesses in individual states. The list includes the top 10 or the top 10 percent, whichever number is smaller. (Ties may increase the number.) The small business lending performance of a lender in a given state is measured on four criteria. The four rankings were summed to create a score for the small business lending activities of individual banks (see Appendix: Data Notes). A lender’s total score is the sum of the four individual decile rankings multiplied by 2.5 to attain a possible score of 100. Decile rankings range from 1 to 10.[13] A complete ranking of all lending institutions in each state is provided on the Advocacy website, www.sba.gov/advo/research/lending.html Note again that Call Report data are keyed to the institution’s headquarters location rather than the location of the lending activity. A significant amount of lending activity by large lending institutions takes place in states other than the one in which the headquarters is located. Table 3B. Top Micro Business Lending by Lending Institutions in the State Based on Call Report Data, June 2007 Table 3B provides a list of lending institutions making micro business loans (loans under $100,000) in individual states. The list includes the top 10 lenders or the top 10 percent, whichever number is smaller. (Ties may increase the number.) The micro business lending performance of a lender in a given state is measured on four criteria. The four rankings were summed to create a score for the micro business lending activities of individual lenders.[14] A lender’s total score is the sum of the four individual decile rankings multiplied by 2.5 to attain a possible score of 100. A complete ranking of all lending institutions in each state is provided on the Advocacy website, www.sba.gov/advo/research/lending.html Table 4A. Top Small Business Lenders in the State Based on CRA Report Data, 2006 State lending information for large lending institutions is best captured in the CRA database. Table 4A provides a list of top small business lenders in a given state using CRA data. The list includes lending institutions with small business lending of more than $50 million in a given state in 2006. Data for the members of a holding company were consolidated first to generate estimates for the parent holding company. Consolidated estimates were then derived for each holding company in each state. Rankings are based solely on the dollar amount of small business lending (loans under $1 million) in this table because of the difficulty of generating two ratio variables for these institutions by state. Clearly, large lending institutions appear more important in the small business loan markets in many states. Table 4B. Top Micro Business Lenders in the State Based on CRA Report Data, 2006 Table 4B provides a list of top micro business lenders in a given state using CRA data. The list includes lending institutions with micro business lending of more than $10 million in a given state in 2006. Again, rankings are based solely on the dollar amount of micro business lending (loans under $100,000) in this table for the reasons discussed above. Appendix: Data Notes Ranking Methodology and Table Descriptions When possible, four variables were used to create a total score for the small business lending activities of individual lenders: (1) the ratio of small business loans to total assets, (2) the ratio of small business loans to total business loans, (3) the dollar value of small business loans, and (4) the number of small business loans. The total ranking summarizes the four individual scores. Small lending institutions tend to score higher in some categories than larger lending institutions, and vice versa. For example, smaller lenders have a higher percentage of total assets in small business loans, but larger lenders lead in the sheer number and value of small loans. Using two ratio variables and two value variables permits a more balanced measure of lending performance by lenders of different sizes.[15] For large lending institutions in the Call Reports (Tables 1A and 1B), simple rankings from 1 up were performed for each of the four variables first, with “1” as the top ranking. The four individual rankings were summed and re-ranked from 1 up to produce a total rank. For lending institutions in the CRA data (Tables 2A and 2B), ratio information was retrieved from Call Report data and used in combination with information from the CRA to perform Advocacy’s four-variable scheme for ranking. Again, simple rankings were performed and summed to obtain total rankings. For rankings of all reporting lending institutions in a state based on Call Report data (Tables 3A and 3B), a decile ranking is used instead of a simple ranking. This is justified because of the much larger number of lending institutions in a given state. The decile ranking is a measure of where the individual lender falls in the distribution of all lenders within a state for any given variable. Decile rankings range from 1 to 10. Lending institutions in the top 10 percent of all lenders in the state receive the maximum score of 10; banks in the lowest 10 percent receive a score of 1. Lending institutions that do not lend to small businesses (loans under $1 million) receive a 0. Four top scores will sum to 40. To make the top score total 100 rather than 40, each score is multiplied by 2.5. For state lending using the CRA data (Tables 4A and 4B), banks were listed in order of the dollar amount of small business loans made in each state in the year. Obviously, large institutions appear at the top. Variables Used in Tables _______________________________________________________________________________________________ Variable Acronym Explained _______________________________________________________________________________________________ LSBL Small Business Loans (<$1 Million) SSBL Micro Business Loans (<$100,000) LSBL (2) Mid-size Small Business Loans (100,000 -<$1 Million) TBL Total Business Loans TA Total Assets CRD Credit Card ________________________________________________________________________________________________ Table Descriptions Table 1A: Small Business Lending of Large Lending Institutions in the United States Using Call Report Data, June 2007 This table uses Call Report data to rank the small business lending of the large lending institutions on the basis of four criteria that measure the emphasis on small business lending in a lender’s loan portfolio. Small business loans (SBLs) are defined as loans under $1 million. Numbers in parentheses represent columns in the table. (1) Overall Ranking (Total Rank). Summary of small business lending rankings of large lending institutions with respect to loans under $1 million. A simple ranking of 1 and up is made for each of the four criteria and the total rank derived from the sum of the four rankings from variables is found in columns 2-5. (2) Ratio of Small Business Loans to Total Business Loans (LSBL/TBL). For the 100 large lending institutions, the ratios of the value of small business lending to total business lending ranged from 0 to 1.0 percent (for American Express Bank FSB). (3) Ratio of Small Business Loans to Total Assets (LSBL/TA). The ratio of the dollar value of small business loans under $1 million to total domestic assets for each lending institution. For the 100 large lending institutions, the ratios of small business loans to total assets ranged from near 0 percent to a high of 0.487 (for American Express Bank FSB). (4) Total Dollar Amount of Small Business Lending by the Lending Institution (LSBL$). The total dollar amount (in thousands) of small business loans of less than $1 million. (5) Total Number of Small Business Loans (LSBL#). The number of small business loans of less than $1 million. (6) Lending Institution Asset Size Class (Inst. Asset Size). Domestic asset size class of the lending institution: • $10 billion to under $50 billion ($10B–$50B) • $50 billion and over (>$50B) (7) Total Dollar Amount of Micro Business Loans (SSBL$). Similar to column 4, but for loans of less than $100,000 (in thousands of dollars). (8) Total Number of Micro Business Loans (SSBL#). Similar to column 5, but for loans of less than $100,000. (9) Total Dollar Amount of Larger Small Business Loans (LSBL(2)$). Similar to column 4, but for loans between $100,000 and $1 million (in thousands of dollars). (10) Total Number of Larger Small Business Loans (LSBL(2)#). Similar to column 5, but for loans between $100,000 and $1 million. (11) Credit Card Loans to Total Assets (CRD/TA). The ratio of the dollar value of credit card loans to total assets. Table 1B: Micro Business Lending of Large Lending Institutions in the United States Using Call Report Data, June 2007 This table uses Call Report data to rank the micro business lending of the large lending institutions on the basis of four criteria that measure the emphasis on micro business lending in a lender’s loan portfolio. Micro business loans (SSBLs) are defined as loans under $100,000. Numbers in parentheses represent columns in the table. (1) Overall Ranking (Total Rank). Summary rankings of large lending institutions with respect to loans under $100,000. A simple ranking of 1 and up is made first, and the total rank is derived from the sum of four rankings from the variables found in columns 2 through 5. (2) Ratio of Micro Business Loans to Total Assets (SSBL/TA). The ratio of the total dollar value of micro business loans under $100,000 to the total assets for each lending institution. For the 100 largest lending institutions, the ratios of micro business loans to total assets ranged from 0 to 0.487 percent (for American Express Bank FSB). (3) Ratio of Micro Business Loans to Total Business Loans (SSBL/TBL). For the 100 large lending institutions, the ratios of the value of micro business lending to total business lending ranged from 0 to 1.0 percent (for American Express Bank FSB). (4) Total Dollar Amount of Micro Business Lending by the Lending Institution (SSBL$). The total dollar amount (in thousands) of loans less than $100,000. (5) Total Number of Micro Business Loans (SSBL#). The number of loans less than $100,000. (6) Lending Institution Asset Size Class (Inst. Asset Size). Asset size class of the lending institution: • $10 billion to under $50 billion ($10B–$50B) • $50 billion and over (>$50B) (7) Total Dollar Amount of Small Business Loans (LSBL$). Similar to column 4, but for loans of less than $1 million (in thousands of dollars). (8) Total Number of Small Business Loans (LSBL#). Similar to column 5, but for loans of less than $1 million. (9) Total Dollar Amount of Larger Small Business Loans (LSBL(2)$). Similar to column 4, but for loans between $100,000 and $1 million (in thousands of dollars). (10) Total Number of Larger Small Business Loans (LSBL(2)#). Similar to column 5, but for loans between $100,000 and $1 million. (11) Credit Card Loans to Total Assets (CRD/TA). The ratio of the dollar value of credit card loans to total assets. Table 2A: Small Business Lending of Large Lending Institutions in the United States Using CRA Data, 2006 Table 2A uses both CRA and Call Report data to rank-order the 87 largest lending institutions on the basis of four criteria that measure the small business lending performance for a lender. Two ratio variables were derived from the Call Reports while the two value variables are from the CRA data. Numbers in parentheses represent columns in the table. (1) Total Rank. Summary “small business performance” rankings of the lending institution with respect to loans under $1 million. A simple ranking of 1 through 87 for each of the four variables is performed first and the sum of the four scores is used to derive the total rank. The four variables used are described in this table in columns 2 through 5. (2) Ratio of Small Business Loans to Total Assets (LSBL/TA). This column shows the ratio of small business loans (<$1 million) to total assets for each lending institution. A high ratio indicates a lender’s willingness to place a large portion of its assets in small business lending. (3) Ratio of the Dollar Amount of Small Business Loans to Total Business Loans (LSBL/TBL). The ratio of small business loans (<$1 million) to total business loans for each lender. Lending institutions that make business loans predominantly to small firms will rank high in this category. (4) Total Dollar Amount of Small Business Lending by the Lending Institutions (LSBL$). The total dollar amount (in thousands) of small business loans of less than $1 million. (5) Total Number of Small Business Loans (LSBL#). The number of small business loans of less than $1 million. (6) States with Loans (No. of States w/ Loans). The number of states (and territories) where the lender extended small business loans. (7) Lending Institution Asset Size Class (Inst. Asset Size). Asset size class of the lending institution: • $10 billion to under $50 billion ($10B–$50B) • $50 billion and over (>$50B) (8) Total Dollar Amount of Micro Business Loans under $100,000 by the Lending Institution (SSBL$). Similar to column 4, but for loans of less than $100,000 (in thousands of dollars). (9) Total Number of Micro Business Loans under $100,000 by the Lending Institution (SSBL#). Similar to column 5, but for loans of less than $100,000. Table 2B: Micro Business Lending of Large Lending Institutions in the United States Using CRA Data, 2006 Table 2B uses both CRA and Call Report data to rank order 87 large lending institutions on the basis of four criteria that measure the micro business lending performance for a lending institution. Two ratio variables were derived from the Call Reports. The four individual scores will be provided in the tables on the website. Numbers in parentheses represent columns in the table. (1) Total Rank. Summary “micro business performance” rankings of lending institutions with respect to loans under $1 million. A simple ranking of 1 through 87 for each of the four variables is performed first and the sum of the four scores is used to derive the total rank. The four criteria used are described in this table as items 2 through 5. (2) Ratio of Micro Business Loans to Total Assets (SSBL/TA). This column shows the ratio of micro business loans (<$100,000) to total assets for each lending institution. A high ratio indicates a lender’s willingness to place a large portion of its assets in small business lending. (3) Ratio of the Dollar Amount of Micro Business Loans to Total Business Loans (SSBL/TBL). The ratio of micro business loans (<$100,000) to total business loans for each bank. Lenders that make business loans predominantly to small firms will rank high in this category. (4) Total Dollar Amount of Micro Business Lending by the Lending Institution (SSBL$). The total dollar amount (in thousands) of micro business loans of less than $100,000. (5) Total Number of Micro Business Loans (SSBL#). The number of micro business loans of less than $100,000. (6) States with Loans (No. States w/Loans). The number of states (and territories) where the lender extended micro business loans. (7) Institution Asset Size Class (Inst. Asset Size). Asset size class of the lending institutions: • $10 billion to under $50 billion ($10B–$50B) • $50 billion and over (>$50B) (8) Total Dollar Amount of Small Business Loans by the Lending Institution (LSBL$). Similar to column 4, but for loans of less than $1 million (in thousands of dollars). (9) Total Number of Small Business Loans by the Lending Institution (LSBL#). Similar to column 5, but for loans of less than $1 million. Table 3A: Top Small Business Lending of Lending Institutions by State Using Call Report Data, June 2007 (1) Total Score (Total Rank). The total rank found in the first column is the score of the lender in the state in which it is listed. The number is the aggregate measure of small business lending activity based on the sum of the four individual decile scores provided on the website. (2) Ratio of Small Business Loans to Total Assets (LSBL/TA). This column shows the ratio of small business loans (<$1 million) to total assets for each lending institution. A high ratio indicates a lender’s willingness to place a large portion of its assets in small business lending. (3) Ratio of the Dollar Amount of Small Business Loans to Total Business Loans (LSBL/TBL). The ratio of small business loans (<$1 million) to total business loans for each bank. Lenders that make business loans predominantly to small firms will rank high in this category. (4) Total Dollar Amount of Small Business Loans (LSBL$). The dollar value (in thousands) of small business loans (<$1 million) outstanding as of June 30, 2006, from the lending institution. Larger lenders will score well in this column and in column 5 because their size allows them to make more small loans than smaller lenders, even if their commitment to small business lending, as shown by the ratios in columns 2 and 3, is low. (5) Total Number of Small Business Loans (LSBL#). The total number of small business loans (<$1 million) outstanding for each lending institution. (6) Institution Asset Size (Inst. Asset Sz.). The asset size class of the reporting lending institution: • Under $100 million (<$100M) • $100 million to under $500 million ($100M–$500M) • $500 million to under $1 billion ($500M–$1B) • $1 billion to under $10 billion ($1B–$10B) • $10 billion and over (>$10B) (7) Total Score of Micro Business Loans (Total Rank). The total score of the lending institutions based on their micro business lending. The total score is the sum of the four scores with respect to micro business loans of less than $100,000. A firm looking for a loan of less than $100,000 might do well to seek out a lender that ranks high in this column (and/or from table 3B). (8) Dollar Amount of Micro Business Loans (SSBL$). The dollar value (in thousands) of micro business loans of less than $100,000. (9) Number of Micro Business Loans (SSBL#). The number of small business loans of less than $100,000 made by the bank. (10) Credit Card Loans to Total Assets (CRD/TA). The ratio of the dollar value of credit card loans to total assets. Table 3B: Top Micro Business Lending of Lending Institutions by State Using Call Report Data, June 2007 (1) Total Score (Total Rank). The total found in the first column is the score of the lending institution in the state in which it is listed. The number is the aggregate measure of small business lending activity based on the sum of the four individual scores provided on the website. (2) Ratio of Micro Business Loans to Total Assets (SSBL/TA). This column shows the ratio of micro business loans (<$100,000) to total assets for each lender. A high ratio indicates a lender’s willingness to place a large portion of its assets in small business lending. (3) Ratio of the Dollar Amount of Micro Business Loans to Total Business Loans (SSBL/TBL). The ratio of micro business loans (<$100,000) to total business loans for each lending institution. Lenders that make business loans predominantly to small firms will rank high in this category. (4) Total Dollar Amount of Micro Business Loans (SSBL$). The dollar value (in thousands) of micro business loans (<$100,000) outstanding from the lending institution. Larger lenders will score well in this column and in column 5 because their size allows them to make many small loans, even if their commitment to micro business lending, as shown by the ratios in columns 2 and 3, is low. (5) Total Number of Micro Business Loans (SSBL#). The total number of micro business loans (<$100,000) outstanding for each lending institution. (6) Institution Asset Size (Inst. Asset Sz.). The asset size class of the reporting lending institution: • Under $100 million (<$100M) • $100 million to under $500 million ($100M–$500M) • $500 million to under $1 billion ($500M–$1B) • $1 billion to under $10 billion ($1B–$10B) • $10 billion and over (>$10B) (7) Total Score of Small Business Loans (Total Rank). The total score of the lenders based on their small business lending. The total score is the sum of the four scores with respect to small business loans of less than $1 million. A firm looking for a loan of less than $1 million might do well to seek out a lender that ranks high in this column (and/or from Table 3A). (8) Dollar Amount of Small Business Loans (LSBL$). The dollar value (in thousands) of micro business loans of less than $1 million. (9) Number of Small Business Loans (LSBL#). The number of small business loans of less than $1 million made by the lender. (10) Credit Card Loans to Total Assets (CRD/TA). The ratio of the dollar value of credit card loans to total assets. Table 4A: Top Small Business Lenders by State Using CRA Data, 2006 Table 4A is formatted differently from Table 3A because only CRA data are used. The table lists the lending institution name—the name of the owning lending institution—as well as the home state of the lending institution. Lenders are ranked on the basis of the dollar amount of small business loans (under $1 million) made in 2006. The table also provides the dollar amount and number of micro loans under $100,000 and larger small business loans between $100,000 and $1 million. Only lenders with small business loan totals of more than $50 million in a given state in 2006 are listed. Numbers in parentheses represent columns in the table. (1) Amount of Small Business Loans (LSBL$). The dollar amount (in thousands) of loans under $1 million made in 2006. (2) Number of Small Business Loans (LSBL#). The number of loans of less than $1 million made. (3) Institution Asset Size (Inst. Asset Size). The total assets of the owning institution by size category: • Under $1 billion (<$1B) • $1 billion to under $10 billion ($1B-$10B) • $10 billion to under $50 billion ($10B-$50B) • $50 billion and over (>$50B) (4) Dollar Amount of Micro Business Loans (SSBL$). The dollar amount (in thousands) of loans of less than $100,000. (5) Number of Micro Business Loans (SSBL#). The number of loans of less than $100,000. (6) Dollar Amount of Larger Small Business Loans (LSBL (2) $). The dollar amount (in thousands) of loans between $100,000 and $1 million. (7) Number of Larger Small Business Loans (LSBL (2) #). The number of larger small business loans for loans between $100,000 and $1 million. Table 4B: Top Micro Business Lenders by State Using CRA Data, 2006 Table 4B, similar to Table 4A, lists the lending institution’s name—the name of the owning institution or the holding company—as well as the home state of the lending institution. Lenders are ranked on the basis of the dollar amount of loans made in 2006. The table provides the dollar amount and number of micro business loans under $100,000, supplemented by larger small business loans of $100,000 to $1 million and all small business loans under $1 million. Only lenders with micro business loan totals of more than $10 million in a given state in 2006 are listed. Numbers in parentheses represent columns in the table. (1) Amount of Micro Business Loans (SSBL$). The dollar amount (in thousands) of loans under $100,000 made in 2006. (2) Number of Micro Business Loans (SSBL#). The number of loans of less than $100,000 million made. (3) Institution Asset Size (Inst. Asset Size). The total assets of the owning institution by size category: • Under $1 billion (<$1B) • $1 billion to under $10 billion ($1B-$10B) • $10 billion to $50 billion ($10B-$50B) • $50 billion and over (>$50B) (4) Dollar Amount of Small Business Loans (LSBL$). The dollar amount (in thousands) of loans of less than $1 million. (5) Number of Small Business Loans (LSBL#). The number of loans of less than $1 million. (6) Dollar Amount of Larger Small Business Loans (LSBL (2)$). The dollar amount (in thousands) of loans between $100,000 and $1 million. (7) Number of Larger Small Business Loans (LSBL (2)#). The number of larger small business loans between $100,000 and $1 million. Data Tables All data tables follow page 22, except Tables 3A and 3B, which show data for all lending institutions in the 50 states, the District of Columbia, and selected territories for which data are available. Tables 3A and 3B are found only on Advocacy’s website, www.sba.gov/advo/research/lending.html. Table 1A. Small Business Lending of Large Lending Institutions Based on Call Report Data, June 2007 Table 1B. Micro Business Lending of Large Lending Institutions Based on Call Report Data, June 2007 Table 2A. Small Business Lending of Large Lending Institutions in the United States Based on CRA Data, 2006 Table 2B. Micro Business Lending of Large Lending Institutions in the United States Based on CRA Data, 2006 Table 3A. Top Small Business Lending Institutions by State Based on Call Report Data, June 2007 Table 3A. Expanded. All Small Business Lending Institutions by State Based on Call Report Data, June 2007 www.sba.gov/advo/research/lending.html. Table 3B. Top Micro Business Lending Institutions by State Based on Call Report Data, June 2007 Table 3B. Expanded. All Micro Business Lending Institutions by State Based on Call Report Data, June 2007 www.sba.gov/advo/research/lending.html. Table 4A. Top Small Business Lenders by State Based on CRA Data, 2006 Table 4B. Top Micro Business Lenders by State Based on CRA Data, 2006 Table 5. Number of Reporting Institutions by Asset Size and State, 2006–2007 Endnotes [1] See Federal Reserve Bulletin, “Financial Services Used by Small Businesses: Evidence from the 2003 Survey of Small Business Finances,” October 2006, Table 10, Page A186. The SSBF provides the most comprehensive information on the patterns of credit use by small businesses and their providers for 1987, 1993, 1998, and 2003. The 2003 survey is the last to be conducted. [2] This is the 14th annual edition of this study, which began in 1994 using the Call Report data; four years later the CRA data were included as part of the report. [3] As The Call Reports, officially known as the Consolidated Reports of Condition and Income, are quarterly reports filed by the financial institutions with their appropriate depository regulators. Call Reports provide detailed information on the current status of a financial institution. The CRA data are designed to encourage depository institutions to meet the credit needs of the local communities from which they obtain deposited funds. The CRA data become more important in understanding small business lending activities by lending institutions and BHCs in a given state. [4] Coverage of depository institutions in this annual study was expanded in the 2004-2005 edition to include federal and state savings banks and savings and loan associations. Lending institutions covered include commercial banks (charter types 7 and 8), federal savings banks (charter types 9 through 12), and savings and loan associations (charter types 1 through 4). Credit unions are not included. [5] Table D is derived by combining the files for reporting institutions and consolidated holding companies— consolidated members of a holding company. Many noncommercial bank members of holding companies may not be consolidated in the data because of missing ID links. The number of lending institutions as of June 2007 was 7,465, including 2,418 non-BHCs and 5,047 banks and other financial services holding companies. [6] Starting in 2005, fewer lenders were required to file annual CRA reports as a result of a revision in reporting requirements made by federal financial institutions’ regulatory agencies. In the criteria for the CRA program, the asset size for reporting institutions was increased from $250 million to $1 billion in assets, thus eliminating a large number of institutions that had previously reported small business loan data. [7] The 791 number includes all reporting lenders with and without balance sheet information from the Call Reports. Institutions with identified balance sheet items numbered 769. [8] The large decline in the percentage of the smallest loans under $100,000 made by CRA lenders in 2005 is attributable to the omission of data on micro loans supplied by one of the largest lenders—American Express Business Bank. [9] Because small business loan information is reported and available only in the June reports, the CRA lending institutions that were linked to Call Reports were used in the analysis. [10] Since March 2004, American Express Centurion and Capital One Bank have organized federal savings banks (FSBs) to conduct their small business credit card operations. [11] The four criteria used are the same as those for Table 1A. [12] The small business lending activities of American Express Centurion Bank were transferred to American Express Bank after its March 2004 reorganization. [13] See data notes for detailed information on decile rankings. [14] See data notes for detailed information on decile rankings. [15] The exception is those financial holding companies that organize special credit lending institutions such as a federal savings bank or commercial bank to conduct business lending. For example, by organizing a special business lending savings bank, American Express Savings Bank will have even higher values for the two ratio criteria used in the ranking process. 22 Small Business and Micro Business Lending, 2006-2007