Chart 2 Bank CRE Loan Performance Remains Strong Despite Escalating Office Vacancy Rates

Date FDIC Commercial Banks Past Due CRE Loans as % of o/s CRE Loans FDIC Commercial Banks' Charged-Off CRE Loans as % of o/s CRE Loans Office Vacancy
03/31/03 0.95% 0.09% 16.90%
12/31/02 0.90% 0.14% 16.50%
12/31/01 0.94% 0.12% 14.20%
12/31/00 0.71% 0.05% 8.60%
12/31/99 0.71% 0.03% 9.60%
12/31/98 0.91% 0.01% 9.00%
12/31/97 1.14% 0.01% 9.90%
12/31/96 1.54% 0.11% 12.20%
12/31/95 2.14% 0.30% 13.90%
12/31/94 2.88% 0.57% 15.30%
12/31/93 4.68% 1.23% 16.90%
12/31/92 7.07% 2.00% 18.70%
12/31/91 8.00% 1.88% 19.00%

Source: FDIC, Torto Wheaton Research. 2003 as shown is first quarter, with charge-offs annualized.