Small Business Research Summary No. 318 February 2008 Small Business and Micro Business Lending in the United States, for Data Years 2005-2006 by Victoria Jackson and Charles Ou, U.S. Small Business Administration, Office of Advocacy, Office of Economic Research, 2008. 124 pages. Introduction The Office of Advocacy prepares an annual study of institutional lending to small firms. 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 2006 and the Community Reinvestment Act (CRA) reports for 2005. 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. The report includes a discussion of developments in the small and micro business lending activities of institutional lenders. The report examines small business lending in the economy by all lenders in the United States. 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 2004 through June 2006 and the CRA database for the year 2005. 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 multibillion-dollar banks and bank holding companies are presented before state tables for all banks, not because bank holding companies are more important in small business lending, but because the tables are shorter. Beginning in 2006, the report was 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 rate of growth in small business lending outstanding was modest in the 2006 sluggish economy. For micro loans, the growth in dollars exceeded the growth in the number of loans. For mid-sized loans, the increase in the number of loans exceeded the growth in dollars, implying that more loans were made in small amounts. Highlights • In June 2006, small business loans (loans under $1 million) outstanding from 8,709 U.S. reporting depository institutions were valued at $634 billion for 21.3 million loans. The comparable figures for 2005 were $601 billion in 21.0 million loans. • The 19.0 million micro business loans (loans under $100,000) outstanding in 2006 were valued at $146 billion, compared with $138.4 billion in the same number of micro business loans the previous year. The number of mid-sized business loans outstanding (loans ranging from $100,000 to under $1 million) grew by 13 percent from the previous year. • The rate of increase in small business borrowing was moderate, as the value of small business loans outstanding increased from 4.1 percent in 2005 to 5.5 percent in 2006. The value of micro business loans, mid- sized business loans, and small business loans all increased by 5.5 percent, with a negligible decrease in the number of micro business loans. • The mid-sized loan share of the dollar value of business loans outstanding increased slightly, while the share of the number of these loans dropped from 42 to 38 percent, reflecting an increase in average account balances. • The number of multibillion-dollar lending institutions with total domestic assets of more than $10 billion increased from 101 in June 2005 to 108 in June 2006. They accounted for 75.2 percent of total domestic assets, 64 percent of total business loans and 45 percent of small business loans under $1 million. • As of June 2006, the largest lenders—those with more than $10 billion in assets—continued to control the market for micro business loans, especially in the credit card market, where they accounted for 75.2 percent of the total number of loans (up from 70 percent in 2005) and 53 percent of the total amount outstanding. Scope and 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 loans outstanding by loan size for business loans in June 2006, and Community Reinvestment Act (CRA) data cover lending to small businesses for calendar year 2005. 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 (see Table 5 for the number of institutions in each state). 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 2005. Large institutions therefore appear at the top. Simple rankings are used for multibillion-dollar lending institutions because a small number of lenders is involved. This report was peer reviewed consistent with the Office of 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: PB2008-105184 Paper A07 ($38.00) Microfiche A02 ($20.00) CD-ROM A00 ($29.00) Download A00 ($22.95) 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. Foreword I am pleased to provide the newest edition of the Office of Advocacy’s annual study of lending to small and micro businesses by most depository institutions in the United States. This is the second year in which the study coverage has been expanded to include other depository institutions, such as federal and state savings banks and savings and loans associations, and broader geographic coverage to include the U.S. territories. However, with a smaller number of lenders required to submit Community Reinvestment Act (CRA) reports in 2005, the coverage of small business lending activities under the CRA reporting has been reduced relative to the 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) for all reporting institutions, and for multibillion-dollar lending institutions for the 2005–2006 period. The source information consists of two types of data reported by depository institutions to their respective regulating agencies—Call Reports for June 2006 and the CRA reports for year 2005. 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 report is useful to both small businesses in search of loans and lenders who seek to compare themselves to 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 homepage, 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 Introduction Access to credit is vital for small business survival. The most important institutional supplier of credit to small firms in the United States continues to be the banking system, according to the newly available 2003 Survey of Small Business Finances (SSBF). Of the 60.4 percent of small businesses that used traditional credit (i.e. credit lines, loans, and/ or capital lease) in 2003, 68 percent obtained credit from the banking sector.(1) Critical to the health and growth of a small business is knowledge of how lending institutions are meeting small firm credit needs, and which lenders are investing in small businesses. Such information helps small businesses save precious time and shop efficiently for credit. The knowledge of small business credit demand and supply also helps lending institutions to know 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 these firms. This is the second year the study provides an expanded coverage of small business lending in two respects—the study includes other depository institutions such as savings banks and the savings and loan associations in addition to commercial banks, and the geographic coverage has been expanded to include territorial areas such as Guam, American Samoa, Puerto Rico, and the U.S Virgin Islands. The study continues to combine studies on both small business and micro business lending. This report is based on two types of data reported by these institutions to their respective regulating agencies —the Call Reports for June 2006 (for information on loans outstanding) and the Community Reinvestment Act (CRA) reports for 2005.(2) Data are available only for the size of the loan and not for the size of the business. 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. Part One discusses developments in small and micro business lending activities by commercial banks in the United States. The first section discusses developments apparent in the Call Report data; the second section discusses developments based on the CRA database. 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 multibillion- 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 them 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 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) 205-6533 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 Call Reports(3) A. Small Business Loans Outstanding from All Reporting Lending Institutions Borrowing from lending institutions picked up pace from the previous year (June 2004 – June 2005). Overall, the total amount of small business loans (less than $1 million) made by depository institutions showed larger increases between June 2005 and June 2006 than in the previous period. The dollar amount of small business loans outstanding (loans under $ 1 million) increased 5.5 percent, from $601 billion in June 2005 to $634 billion in June 2006 (Tables A, B, and C). The increase came from all sizes of small business loans—5.5 percent for both loans under $100,000 and loans from $100,000 to under $1 million. The number of small business loans from $100,000 to $1 million increased 12.8 percent during this period compared with a very slight drop in the smallest loans under $100,000 (Table C). Large corporate borrowing contributed the most to total business borrowing during this period as large corporation continued to increase investment and as corporate merger and acquisition (M&A) activities, especially by private equity funds, accelerated the pace of leveraged buyouts in 2006. Borrowing by larger corporations in loan sizes over $1 million increased at an annual rate of 12.4 percent, compared with 11.1 percent over the previous period. B. Total Micro Business Loans Outstanding in the United States Changes in the number and value of micro business loans (under $100,000) remain difficult to interpret, for various reasons.(4) After a very large increase of some 25 percent in the total number of micro business loans from June 2004 to June 2005, the number outstanding was unchanged from June 2005 to June 2006, at 19 million. However, the dollar amount of these loans increased 5.5 percent, from $138.4 billion to $146 billion, over the period. This reflected an increase in the use of credit provided by business credit card companies (Tables B and C). Table A. Dollar Amount and Number of Small Business Loans, June 2004–June 2006, by Loan Size (Dollars in Billions, Numbers in Millions) __________________________________________________________________________________________________________________ Percent Change Loan Size 2004 2005 2006 June 2005– June 2006 __________________________________________________________________________________________________________________ Under $100,000 Dollars 135.9 138.4 146.0 5.5 Number 15.24 19.02 19.0 0 $100,000 to under $1 million 441.3 462.3 487.9 5.5 Number 1.89 1.98 2.23 12.8 Under $1 million Dollars 577.1 600.8 634.0 5.5 Number 17.13 21.00 21.3 1.2 Total Business Loans Dollars 1,512.6 1,680.8 1,848.4 10.0 __________________________________________________________________________________________________________________ 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). Table B. Percent Change in the Dollar Amount of Business Loans by Loan Size, June 2003–June 2006 ___________________________________________________________________________________________________________________ Loan size June 2003–June 2004 June 2004–June 2005 June 2005–June 2006 ___________________________________________________________________________________________________________________ Under $100,000 -0.5 1.9 5.5 $100,000 to Under $1 Million 7.2 4.8 5.5 Under $1 Million 5.3 4.1 5.5 More than $1 Million 4.6 11.1 12.4 ___________________________________________________________________________________________________________________ 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, June 2003–June 2006 ____________________________________________________________________________________________________________________ Loan size June 2003–June 2004 June 2004–June 2005 June 2005–June 2006 ____________________________________________________________________________________________________________________ Under $100,000 -11.1 24.8 0 $100,000 to Under $1 Million 6.6 5.0 12.8 Under $1 Million -9.4 22.6 1.2 ____________________________________________________________________________________________________________________ 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, College Station, Texas C. Small and Micro Business Loans Outstanding from Multibillion-dollar Lending Institutions Bank consolidations continued from June 2005 to June 2006, reflected in the continued increase in the multi-billion-dollar institutions’ share of the industry’s total domestic assets. The total number of banks and other depository institutions (all members of a holding company are consolidated into one parent institution) decreased from 6,533 to 6,391 for lenders with domestic assets of under $500 million (Table D).(5) All other asset size groups showed increases in the number of lenders. The continued increase in the importance of large lending financial institutions in the United States is evident. The number of multibillion-dollar lending institutions with total domestic assets of more than $10 billion increased from 101 in June 2005 to 108 in June 2006. They accounted for 75.2 percent of total domestic assets, 64 percent of total business loans, and 45 percent of small business loans under $1 million. Again, the largest lenders continued to increase their dominance in the market for loans under $100,000, especially in the business credit card market, where they accounted for 71 percent of the total number of loans and 53 percent of the total loan amount outstanding in June 2006 (Table D).(6) In the market for loans between $100,000 and $1 million, the largest lenders remained relatively passive or at least not aggressive. Their share of the dollar loan amount of loans outstanding increased slightly, corresponding to the increase in their total asset share, but the number of loans showed a large drop from 42 to 38 percent, reflecting an increase in average account balances. Table D. Share of Total Assets and Business Loans by Size of U.S. Depository Institutions, June 2004–June 2006 (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, 2004 Number of Institutions 26 78 104 430 491 6,712 7,737 Micro Business Loans (Under $100,000) Amount 32.22 17.03 49.25 13.85 6.43 30.46 100.0 Number 47.93 21.53 69.47 13.92 6.32 10.29 100.0 Small Business Loans ($100,000-$1 Million) Amount 26.93 16.41 43.33 20.92 9.12 26.63 100.0 Number 26.50 16.02 42.52 20.46 10.49 26.53 100.0 Total Small Business Loans (under $1 Million) Amount 28.17 16.56 44.73 19.26 8.49 27.53 100.0 Number 45.57 20.93 66.50 14.64 6.78 12.08 100.0 Total Business Loans Amount 44.03 17.49 61.52 18.10 5.95 14.43 100.0 Total Domestic Assets Amount 53.93 18.87 72.80 13.33 3.85 10.02 100.0 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 ____________________________________________________________________________________________________________________________________________________________________ * All members of a holding company are consolidated to the extent that linked IDs permit. Credit unions are 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 Reports by CRA Reporting Institutions for 2005 A. Small Business Lending by CRA Reporting Lending Institutions Community Reinvestment Act (CRA) data provide information on the location of loans made by a lender over a certain time period, for example, from January 1 through December 31 of a given year. This section provides a profile of the overall activities in small business lending by large lending institutions (most are bank holding companies or BHCs) reporting under the CRA program in 2005. (7) Because of changes in reporting requirements, only 774 lending institutions (after ownership consolidation) were found to have submitted reports for 2005, compared with a total of more than 1,500 in 2004 (Table F). A comparison of the coverage of reporting institutions in the Call Reports (covering all lending institutions) and in the CRA-reporting lenders appears in Table E. The CRA-reporting lending institutions now accounted for 77.0 percent of total domestic assets and about two-thirds (64 percent) of small business lending in the United States according to this study (Table E).(8) Because of the changes in the reporting population in 2005, it is more difficult to interpret the year-to-year movements in small business lending. Information from Call Reports should be consulted for more information about small business lending activities in 2005 by CRA-reporting lenders. In 2005, a total of $271.1 billion in small business loans under $1 million was extended in 7.94 million loans by 774 CRA-reporting lenders, compared with $292.3 billion in 8.1 million loans extended by 1,506 entities in 2004 (Table F).(9) In sum, the dollar amount of the smallest loans (under $100,000) increased, while the larger small business loans ($100,000 to $1 million) decreased, from $197 billion in 2004 to $173 billion in 2005. These statistics reflect a significant change in the population of reporting lenders. B. Micro Business Lending by CRA Lending Institutions Large lending institutions made 7.46 million micro business loans valued at $97.9 billion in 2005, compared with 7.53 million of these loans, valued at $95.4 billion, in 2004.(10) Total domestic assets for these lenders decreased from $8.0 trillion (for 1,484 lenders) in June 2004 to $7.9 trillion (for 726 lenders) in June 2006 (Table F).(11) 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 Institutions CRA-covered Institutions CRA/CRBs CRA/CRBs (CRBs) 6/2006 (CRA) 2005 (Percent) 2005 (Percent) 2004 _______________________________________________________________________________________________________________________________________ Micro Business Loans <$100,000* 146.0 89.0 0.59 0.70 Small Business Loans $100,000-$1 Million 487.9 318.7 0.65 0.78 Small Business Loans <$1 Million 634.0 407.7 0.64 0.76 Total Business Loans 1,848.4 1,465.2 0.79 0.87 Total Assets 10,293.3 7,947.5 0.77 0.84 Number of Lending Institutions 7,624 726 ________________________________________________________________________________________________________________________________________ *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) and 2005 CRA reports 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 Banks in 2004–2005 (Amounts in Billions of Dollars) ___________________________________________________________________________________________________________________________ Loan Size Amount/Number 2004* 2004** 2005* 2005 ** ___________________________________________________________________________________________________________________________ Number of Banks/BHCs 1,484 1,506 726 774 Under $100,000 Amount 94.60 95.4 85.81 7.94 Number 7,509,275 7,532,061 5,94.613 7,458,720 $100,000-$1 Million Amount 193.33 196.89 168.72 173.17 Number 557,534 567,955 475,892 488,787 Under $1 Million Amount 287.93 292.30 254.53 271.11 Number 8,066,809 8,100,016 6,070,505 7,947,507 Total Assets1 Amount 8,016.59 8,016.59 7,947.48 7,947.48 Total Business Loans(1) Amount 1,146.31 1,146.31 1,465.23 1,465.23 ___________________________________________________________________________________________________________________________ * As of June 2005 and 2006 for those with balance sheet items identified. ** For all reporting lenders with or without balance sheet information from Call Reports. 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) and 2005 CRA reports prepared for the Office of Advocacy by James Kolari, Texas A&M University, College Station, Texas. Part Two: Directory of Top U.S. Small and Micro Business Lenders Small business lending and borrowing are primarily 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, the 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 multibillion-dollar lenders) and in each state. Tables 1A through 2B rank multibillion-dollar lenders in the national market (using Call Report data) and in each state (using CRA data). Table 3A through Table 4B list top small business lending institutions in individual states. Information for all reporting lenders (Table 3A and 3B expanded) is available on the Office of Advocacy website at www.sba.gov/advo/research/lending.html. Table 1A. Small Business Lending of Large Lending Institutions Based on Call Report Data, June 2006 Table 1A ranks the small business lending of the 101 largest lending institutions with total domestic assets of more than $10 billion.(12) Each lending institution is ranked from 1 to 101 on each of four variables. These variables then are totaled and re-ranked from 1 to 101. (The remaining institutions are not ranked because they had no loan balances in the smallest small business loans (SSBL). The top five small business lenders in June 2005 based on Call Report data are American Express Bank FSB (first in 2005), Capital One FSB (second in 2005), Regions Financial Corporation (third in 2005), First Citizen Bancshares, Inc. (sixth in 2005), and Synovus Financial Corporation (fifth in 2005).(13) Table 1B. Micro Business Lending of Large Lending Institutions Based on Call Report Data, June 2006 Table 1B ranks the micro business lending of the 101 banks and bank holding companies with total domestic assets of more than $10 billion.(15) Each lending institution is ranked from 1 to 101 on each of four variables. These variables then are totaled and re-ranked from 1 to 101; 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 2005 under American Centurion), Capital One FSB (second in 2005), Citigroup, Inc. (fourth in 2005), Wells Fargo (fifth in 2005), and JPMorgan Chase and Co. (seventh in 2005).(16) Table 2A. Small Business Lending of Large Lending Institutions Based on CRA Data, 2005 Table 2A ranks multibillion-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 of the largest lending institutions with total small business loans of $500 million or more in 2005 were ranked. The five top small business lenders for 2005, using the combined ranking criteria are Regions Financial Corp (second in 2004), Capital One FSB (first in 2004), Synovus Financial Corporation (fourth in 2004), and First Citizen (sixth in 2004).(17) Table 2B. Micro Business Lending of Large Banks and BHCs Based on CRA Data, 2005 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 large lending institutions with micro business loans in 2005 were ranked. The five top small business lenders for 2005 using CRA data are: Capital One FSB (first in 2004), Citigroup Inc. (fourth in 2004), Wells Fargo and Company (third in 2004), AmSouth Bancorporation (fifth in 2004), and JPMorgan Chase & Co. (sixth in 2004).(18) Table 3A. Top Lenders to Small Businesses in the State Based on Call Report Data, June 2006 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 page 13). 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.(19) 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 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 each bank’s headquarters is located. Table 3B. Top Micro Business Lending by Lending Institutions in the State Based on Call Report Data, June 2006 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. 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, 2005 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 2005. 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, 2005 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 in a given state of more than $10 million in 2005. 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 allows a more balanced measure of lending performance by lenders of different sizes.(20) For large lending institutions in the Call Reports (Tables 1A and 1B), simple rankings from 1 and up were performed for each of the four variables first, with “1” for the top ranking. The four individual rankings were summed and re-ranked from 1 and greater to produce a total rank. For lending institutions using 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 ranking 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 a 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 2006 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 108 large lending institutions, the ratios of the value of small business lending to total business lending ranged from near 0 percent to 1.00 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 $1 million to total domestic assets for each lending institution. For the 108 large lending institutions, the ratios of small business loans to total assets ranged from near 0 percent to a high of 0.451 (for American Express Bank FSB). (4) Total Dollar Amount of Small Business Lending by the Lending Institution (LSBL$). 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 2006 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 $100,000 to the total assets for each lending institution. For the 108 largest lending institutions, the ratios of micro business loans to total assets ranged from near 0 to 0.451 percent (for American Express Bank FSB). (3) Ratio of Micro Business Loans to Total Business Loans (SSBL/TBL). For the 108 large lending institutions, the ratios of the value of micro business lending to total business lending ranged from near 0 percent to 1.000 percent. (American Express Bank FSB scored 1.000 percent because of the dominance of business credit cards and small credit lines in the bank’s business loans). (4) Total Dollar Amount of Micro Business Lending by the Lending Institution (SSBL$). The total dollar amount (in thousands) of loans of less than $100,000. (5) Total Number of Micro Business Loans (SSBL#). The number of loans of 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, 2005 Table 2A uses both CRA and Call Report data to rank order the 80 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 80 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) The 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) The 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 w/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, 2005 Table 2B uses both CRA and Call Report data to rank order 80 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 80 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) The 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) The 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 (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 2006 (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) The 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) The 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 2006 (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) The 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) The 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, 2005 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 2005. The table also provides the dollar amount and number of small business loans for micro loans under $100,000 and for large-sized loans between $100,000 and $1 million. Only lenders with small business loan totals of more than $50 million in a given state in 2005 are listed. Numbers in parentheses represent columns in the table. (1) Amount of Small Business Loans (LSBL$). The dollar amount, in thousands, of loans under $1 million made in 2005. (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 $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 between $100,000 and $1 million. Table 4B: Top Micro Business Lenders by State Using CRA Data, 2005 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 2005. The table provides the dollar amount and number of micro business loans under $100,000, supplemented by mid-sized small business loans under $250,000, and small business loans under $1 million. Only lenders with micro business loan totals of more than $10 million in a given state in 2005 are listed. Numbers in parentheses represent columns in the table. (1) Amount of Micro Business Loans (SSBL$). The dollar amount, in thousands, of loans under $100,000 made in 2005. (2) Number of Micro Business Loans (SSBL#). The number of loans of less than $100,000. (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 (>$50B) (4) Dollar Amount of Small Business Loans (LSBL$). 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. Footnotes (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. (2) 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. The 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. (3) As a reminder, the definition of depository institutions covered in this study was expanded in the 2004-2005 edition to include federal and state savings banks and savings and loan associations. Thus, 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, however, are not included. (4) Reasons include the continued efforts by major small business credit card issuers to consolidate their data reporting practices. Further complicating the interpretation are the merger and acquisition activities of credit card operations among commercial banks, federal saving banks, and commercial finance companies, and the reduced coverage of lenders required to submit a CRA report in 2005. (5) As discussed in the previous study, Table D is derived by combining the files for reporting institutions and the consolidated holding companies, which consolidated all members of a holding company. Many noncommercial bank members of the holding companies may not be consolidated because of missing ID links. The number of lending institutions as of June 2006 was 7,563, including 1,487 independent institutions and 5,076 bank and financial services holding companies. (6) C&I loans have always accounted for a large share of the small business loan portfolios of very large lending institutions; they accounted for 50 percent of total C&I loans under $100,000 and only 20 percent of the smallest nonresidential mortgage loans (under $100,000) as of June 30, 2006. (7) Fewer lenders are required to file annual CRA reports in 2005 as a result of a revision in reporting requirements made by federal financial institutions’ regulatory agencies. The asset size at which institutions were required to report was increased from $250 million to $1 billion; this eliminated a large number of institutions that had reported small business loan data in the past. (8) The large decline in the percentage of the smallest loans (under $100,000) made by CRA lenders in 2005 was caused by the omission of data on micro loans formerly supplied by one of the largest lenders—American Express Business Bank. (9) This includes all reporting lenders with and without asset information obtained from Call Reports. Lenders with assets and loans outstanding identified in Call Reports totaled $254.5 billion for 726 lenders in 2005 compared with a total of $287.9 billion for 1,484 lenders in 2004. See Small Business and Micro Business Lending in the United States for Data Years 2004-2005. (10) This includes lenders with and without asset information. For reporting lenders with assets and loans outstanding identified, only $85.8 billion was extended in 5.95 million loans by 726 lenders in 2005 compared with 7.5 million micro business loans valued at $95 billion by 1,484 lenders in 2004. See Small Business and Micro Business Lending in the United States for Data Years 2004-2005 (Table F). (11) Because small business loan information is reported and available only in the June edition of the report, the CRA lending institutions that were linked to the Call Reports were used in the analysis. (12) Two major credit card banks—American Express Centurion Bank (since March 2004) and Capital One Bank have organized federal savings banks (FSBs) to conduct their small business credit card operations. As a result, their Call Report submissions are not included in the Call Report filing for commercial banks, which is the focus of this statistical effort. Statistics for Capital One Bank are, therefore, not available in this ranking. (13) Not ranked because of missing information or a zero value for small business lending activities. (14) American Express reorganized its small business lending activities under a savings bank charter, American Express Bank FSB, beginning in March 2004. (15) The four criteria used are the same as those for Table 1A. (16) It is important to remember that banks, including BHC subsidiaries, that participate in the U.S. Small Business Administration’s preferred or certified lenders’ programs are active small business lenders. For details visit www.sba.gov/financing/sbaloans. (17) American Express Bank FSB does not appear on the top list because the bank was not required to submit a CRA report after the reorganization. The bank, however, is ranked in Tables 1A and 1B based on June Call Report information. (18) See footnote 16 about American Express Bank FSB. The small business lending activities of American Express Centurion Bank were transferred to American Express Bank after its March 2004 reorganization. (19) See data notes for detailed information on decile rankings. (20) The exception is 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.