In 2002, Rhode Island had 14 insured banks with combined assets of $196.7 billion. Three of these banks were state-chartered.
As of 2002, the 30-year mortgage rate was below 7%, and refinancing activity was strong among consumers securing long-term fixed-rate loans at low rates. In Rhode Island, median long-term assets to earning assets rose to a 10-year high. Close to 50% of the state's banks have long-term asset concentrations of greater than 40%. Savings banks represent 50% of insured banks in Rhode Island and residential real estate loans made up 56% of the average loan portfolio in 2002.
Residential and commercial real estate (CRE) loan delinquencies increased in late 2002. One-fourth of Rhode Island's insured banks have high-risk (commercial, construction, commercial real estate, and multifamily loans) loan concentrations of at least 300% of capital.