In 2002, Virginia's 116 insured banks reported combined assets of $29 billion. Eighty-five of those institutions were state-chartered. As of the end of 1995, the Resolution Trust Corporation had resolved 18 institutions with combined assets of $11.5 billion at a resolution cost of $2.3 billion.
Net income for Virginia's banks rose 32% from 2001 to 2002, compared with 11% growth from 2000 to 2001. A series of deep cuts in interest rates on the part of the Federal Reserve during 2001–03 served to compress net interest margins (NIMs) (the difference between the lower rates offered to savers and the higher rates charged on loans). Loan growth was brisk at Virginia's smaller community banks (those with assets under $1 billion), especially in high-risk areas, such as commercial real estate (CRE) loans.