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Quarterly Analysis of Institutions in the Capital Purchase Program Second Quarter 2010 Introduction Throughout 2008, 2009, and 2010, the Federal Government launched a series of financial initiatives aimed at stabilizing the economy. The Treasury Department (“Treasury”) launched one of its largest initiatives, the Capital Purchase Program (CPP), under the Emergency Economic Stabilization Act (EESA) in October 2008. Through the CPP, Treasury purchased shares of preferred stock (or comparable instruments) from qualifying financial institutions. By strengthening the capital bases of these financial institutions through CPP, Treasury aimed to enhance market confidence in the entire banking system, thereby increasing the capacity of these institutions to lend to U.S. businesses and consumers and to support the U.S. economy under the difficult financial market conditions. In an effort to understand better how CPP and other stabilization initiatives may have affected financial institutions and their activities, an interagency group convened to determine and conduct appropriate analyses. The interagency group consisted of representatives from Treasury, the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board of Governors (Board), the Office of the Comptroller of the Currency (OCC), and the Office of Thrift Supervision (OTS). Identifying the effects of EESA programs on lending presents significant conceptual and practical challenges. Foremost among these challenges are the inherent difficulties in disentangling the relative importance of reduced demand for credit due to weaker economic activity, reduced supply of credit because borrowers appear less creditworthy, or reduced supply of credit because lenders face pressures that restrain them from extending credit, such as possible concerns about their capital. Modifying changes in the latter is the primary goal of the CPP and other measures taken. The close proximity in time of many actions by the U.S. and other governments, including the initial announcement of the CPP and other U.S. initiatives, adds to the challenges of identifying effects of specific programs or groups of programs. Significant repayments of CPP funds present further analytical challenges as the panel of CPP recipients and their characteristics has shifted over time. Notwithstanding these challenges, in the interest of providing information to the market and the U.S. public, Treasury continues to produce this summary of the activities of institutions receiving TARP capital through the CPP. By regulation, depository institutions are required each quarter to submit financial data (i.e. income statement, balance sheet, and supporting schedules) to their primary federal regulator in Call Reports and Thrift Financial Reports. Many depository institutions are owned by bank holding companies that may also own securities broker-dealers and other non-depository financial institutions. Large bank holding companies are required to submit consolidated financial data to the Federal Reserve Board of Governors each quarter in Consolidated Financial Statements for Bank Holding Companies (FR Y-9C Reports). The first section (“Section A”) of 1 this report analyzes Call Reports and Thrift Financial Reports, and the second section (“Section B”) analyzes Y-9C data. 1 The interagency group selected line items from regulatory filings that measure the status of financial institutions in a concise manner. Summary tables based on regulatory filing data include items in three broad categories: balance sheet and off-balance sheet items, performance ratios, and asset quality measures. The selected line items appear in the following tables. The tables present second quarter 2010 data as aggregate and median levels and present median changes from third quarter 2008 (the quarter prior to the inception of CPP), second quarter 2009 (the previous year), and first quarter 2010 (the previous quarter). 2 The group recognized that both institution size and the timing of CPP capital investments would likely have a bearing on this type of analysis. In previous versions of the report, prior to first quarter 2010, CPP participants were broken into groups by the quarter of initial CPP funding, with all non-CPP participants comprising a separate group. Data were displayed as aggregate amounts for each group. As the final CPP fundings occurred in December 2009, Treasury has changed the grouping methodology. These tables now distinguish financial institutions by size and whether they participated in CPP. The asset size distinctions are made in two ways. For the analysis of Call Report data, asset size is determined by the sum of assets of depository institutions, consolidated by bank holding company (asset size is assigned to independent depository institutions by the asset size of the individual institution).3 For the analysis of Y-9C data, asset size is determined by the asset size of the bank holding company. For both the Call Report and Y-9C sections asset size is assigned using first quarter 2010 data. 4 Institutions whose highest parent bank holding company is flagged as more than 24.9 percent foreign owned are removed from both the Call Report and Y-9C sections. 5 Four groups of entities receiving CPP funds have been created for this report: • • • • CPP (I) Assets greater than $100 billion. CPP (II) Assets between $10 billion and $100 billion. CPP (III) Assets between $1 billion and $10 billion. CPP (IV) Assets less than $1 billion. 1 Detailed information on reporting can be found at the Federal Financial Institutions Examinations Council website (http://www.ffiec.gov) and at the Board of Governors website (http://www.federalreserve.gov) under “Reporting Forms”. In general, only bank holding companies with consolidated assets greater than $500 million are required to submit Y-9C reports. 2 See “Appendix A: Notes to Call and Thrift Financial Report Data Users” and “Appendix B: Notes to Y-9C Data Users” for a more detailed description of the data. 3 All figures reflect depository institution data aggregated by bank holding company (when applicable). 4 Call Report data are merger adjusted to reflect mergers that have occurred through first quarter 2010. Y-9C data are only adjusted to reflect the acquisition of Wachovia Corporation (acquired by Wells Fargo & Company) and National City Corporation (acquired by PNC Financial Services Group) in fourth quarter 2008. 5 Foreign owned (24.9% or higher) institutions were not eligible to receive TARP capital under the CPP. 2 Three groups of entities not receiving CPP funds have been created for this report 6 : • • • Non-CPP (V) Assets between $10 billion and $100 billion. Non-CPP (VI) Assets between $1 billion and $10 billion. Non-CPP (VII) Assets less than $1 billion. While these data accurately reflect the financial results of these different groups, it is difficult to draw specific conclusions about the effectiveness of the CPP from solely these ratios. First, more quarters of data will be needed to fully understand the effects of the CPP on both individual institutions as well as on the financial system as a whole. Second, these data are not seasonally adjusted, which may drive some of the quarter-to-quarter variations. And third, for a more meaningful comparison between CPP and Non-CPP institutions, one should take into account characteristics in addition to size. Treasury is continuing to refine its analysis accordingly. 6 After data adjustments, there are no non-CPP depository institutions with assets greater than $100 billion (in the Call Report section). There was one bank holding company with assets greater than $100 billion, MetLife (in the Y9C section). MetLife was removed from the non-CPP group given that MetLife’s primary business specialization is insurance and not banking. 3 Section A: Call and Thrift Financial Report Analysis The Call and Thrift Financial Report data are organized into seven tables by group: Group Group I 1 Description CPP Participants with assets over $100 billion Group II CPP Participants with assets between $10 and $100 billion Group III CPP Participants with assets between $1 and $10 billion Group IV CPP Participants with assets under $1 billion Group V Non-CPP Participants with assets between $10 and $100 billion Group VI Non-CPP Participants with assets between $1 and $10 billion Group VII Non-CPP Participants with assets under $1 billion Bank Independent Holding Depository Companies Institutions Total Assets of % of Total Depository Assets of All Institutions in Depository Group (Millions) Institutions 13 0 $7,588,394 62% 38 3 $1,230,349 10% 163 19 $485,495 4% 352 115 $171,625 1% 13 15 $690,175 6% 233 110 $833,152 7% 4,039 1,875 $1,181,756 10% 1. Asset size is determined by the sum of assets of depository institutions, consolidated by bank holding company (asset size is assigned to independent depository institutions by the asset size of the individual institution). 4 Summary of Findings Note: All changes refer to the median change between third quarter 2008 and second quarter 2010, unless otherwise noted. Selected Balance and Off-Balance Sheet Items Overall Asset Growth Asset growth was higher for Non-CPP institutions in each size group except for institutions with less than $1 billion in assets. For institutions with less than $1 billion in assets, CPP institutions had 10.0% growth in total assets and Non-CPP institutions had 7.5% growth in total assets. Loan Growth 7 All asset size groups (CPP and Non-CPP) experienced a decrease in total loans with the exception of institutions under $1 billion in assets, for which CPP institutions grew at 2.8% while Non-CPP institutions grew at 2.6%. Despite largely negative total loan growth, all groups did experience positive growth in some individual loan categories. CPP institutions with over $100 billion in assets saw the most growth in credit card loans, which was largely due to accounting changes implemented in the first quarter of 2010 (the implementation of FAS 166 and 167 8 ), but also saw growth in other consumer loans. For institutions with between $10 and $100 billion in assets there was growth for both CPP and Non-CPP in home equity loans, while CPP institutions also had growth in commercial real estate loans and non-CPP institutions also had growth in credit card loans. For institutions between $1 and $10 billion in assets, there was growth in home equity loans and commercial real estate loans (both CPP and Non-CPP). Lastly, institutions under $1 billion in assets had growth in closed-end 1-4 family residential loans, home equity loans, and commercial real-estate loans (CPP and Non-CPP). Closed-end and Open-end Mortgage Originations 9 In all asset groups, closed-end mortgage originations for sale and closed-end originations sold increased, with the exception of CPP institutions with over $100 billion in assets which had a decrease in closed-end originations sold. Growth was mixed across groups for both open-end mortgage originations for sale and open-end originations sold, largely due to the small number of institutions that reported open-end originations. 7 All loan growth figures refer to the change in outstanding loan balances. 8 Per the FDIC’s first quarter 2010 Quarterly Banking Profile, “Implementation of FAS 166 and 167 caused a large amount of loans in securitized loan pools to be consolidated into the reported loan balances of a relatively small number of large insured institutions in the first quarter.” More information can be found in the FDIC’s first quarter Quarterly Banking Profile (http://www2.fdic.gov/qbp/2010mar/qbp.pdf). 9 Only Call Report filers with assets over $1 billion or more than $10 million in mortgage origination for two consecutive quarters are required to report residential loans originated for sale (see Appendix A: Notes to Call and Thrift Financial Report Data Users). 5 Securities on Balance Sheet Most groups experienced growth in mortgage-backed securities (MBS) with the exception of institutions with assets under $1 billion and Non-CPP institutions with assets under $10 billion. Asset-backed securities (ABS) had negative growth all groups. Other Asset Growth Unused commitments decreased in all groups. The outstanding principal balance of assets sold and securitized with servicing retained decreased in all groups. Cash and balances due rose in all groups. Liabilities Only CPP institutions with assets over $100 billion and CPP institutions with assets between $10 and $100 billion had decreases in total liabilities. All groups experienced growth in deposits. The largest increase in deposits was by CPP institutions with under $1 billion in assets (14.4%) and the smallest growth was in CPP institutions with over $100 billion in assets (2.4%). Total other borrowings 10 and Federal Home Loan Bank (FHLB) advances decreased across all groups (CPP and Non-CPP). The largest decrease in total other borrowings was by CPP institutions with over $100 billion in assets (-51.1%). The largest decrease in FHLB advances was also in CPP institutions with over $100 billion in assets (-61.3%). Equity Capital All groups experienced growth in equity capital since third quarter 2008. With the exception of institutions with assets between $10 and $100 billion, CPP institutions had higher growth in equity capital than Non-CPP institutions. Performance Ratios 11 Capital Ratios In second quarter 2010, Non-CPP institutions with under $1 billion in assets had the highest median tier one leverage ratio, and median tier one risk based capital ratio. The highest median total risk based capital ratio was from institutions with from Non-CPP institutions with assets between $10 and $100 billion. Most groups experienced growth in these capital ratios with the exception of Non-CPP institutions with assets under $1 billion in assets in all three ratios and Non-CPP institutions with assets between $1 billion and $10 billion in assets in the median tier 1 risk-based capital ratio. CPP Institutions with assets between $10 billion and $100 billion in 10 Total other borrowings include FHLB advances and other amounts borrowed by the consolidated bank, exclusive of federal funds purchased and securities sold under agreements to repurchase, liabilities for short positions, and subordinated notes and debentures. This item includes mortgage indebtedness and obligations under capitalized leases. 11 Performance ratios are displayed as weighted averages and medians for each group for the current quarter (see Appendix A: Notes to Call and Thrift Financial Report Data Users). Performance ratios are displayed as medians for past quarters. All changes in performance ratios refer to the changes between the median ratios. 6 assets largest increases in median tier one leverage ratio, the median tier one risk-based capital ratio, and median total risk based capital ratio. Earnings Ratios Median return on equity, median return on assets and median net interest margin were positive in all groups in second quarter 2010. CPP institutions with assets between $1 and $10 billion in assets had decreases in the median return on equity and median return on assets had a decrease in ratios and Non-CPP institutions with assets under $1 billion had decreases in all three median ratios. Loss Coverage Ratios Median coverage ratios (allowance for loan and lease losses to noncurrent loans) declined across all groups (CPP and Non-CPP). The largest decrease in median coverage ratio was by Non-CPP institutions with between $10 and $100 billion in assets. In second quarter 2010, Non-CPP institutions with assets under $1 billion had the highest median coverage ratio (74.9%), while CPP institutions with assets between $1 billion and $10 billion in assets had the lowest median coverage ratio (58.8%). The median ratio of loss provisions to net charge-offs (for the quarter) decreased across all groups (CPP and Non-CPP) with the exception of Non-CPP institutions with assets under $1 billion. Non-CPP institutions with between $1 and $10 billion in assets had the highest median ratio of loss provisions to net charge-offs in second quarter 2010 (117.8%), while CPP institutions with over $100 billion in assets had the lowest median ratio (94.8%). The median ratio of net charge-offs to average loans and leases increased in all group. The largest increase was in CPP institutions with over $100 billion in assets. In second quarter 2010, CPP institutions with over $100 billion in assets had the highest median ratio of net charge-offs to average loans and leases and Non-CPP institutions with under $1 billion in assets had the lowest median ratio of net charge-offs to average loans and leases. Asset Quality: Noncurrent Loans With few exceptions, noncurrent loans as a percentage of loans (within loan category) increased in all groups and loan categories in second quarter 2010. Asset Quality: Gross Charge-offs Gross charge-offs as a percentage of total loans (within loan type) either experienced no change or increased across all loan categories and groups in second quarter 2010. 7 I. CPP Depository Institutions with Assets Greater than $100 Billion1 Median % Change Q2 2010 Selected balance and off‐balance sheet items $ millions (aggregate) $ millions (median) Q3 2008 From Previous Quarter From Previous Year Assets $7,588,394 $195,006 ‐6.36% ‐0.63% ‐2.92% Loa ns $3,972,082 $126,143 ‐10.05% ‐1.40% ‐7.33% Construction & development $127,411 ‐9.14% ‐27.43% ‐11.36% ‐0.38% ‐12.32% $15,443 ‐1.44% ‐1.40% ‐4.22% $532,273 2 ‐40.02% $30,848 $441,658 Home equity Credit card $6,135 $1,009,276 Closed‐end 1‐4 family residential $3,547 54.61% ‐1.70% 50.73% Other consumer $377,839 $15,298 1.94% 0.16% 10.18% Commercial & Industrial $645,301 $23,252 ‐18.66% ‐0.96% ‐16.23% Commercial real estate $288,160 $19,878 ‐3.49% ‐1.20% ‐4.47% Unus ed commi tments $4,151,608 $99,784 ‐18.00% ‐1.10% ‐4.99% Securi ti za ti on outs ta ndi ng pri nci pa l $1,340,406 $1,215 ‐49.48% ‐3.31% ‐47.16% $786,868 $33,089 8.51% ‐0.15% ‐2.60% $98,468 $4,982 ‐40.28% ‐4.70% ‐19.83% Other s ecuri ti es $483,907 $12,287 38.49% ‐1.13% 10.99% Ca s h & ba l ances due $616,331 $8,339 4.67% 1.79% ‐10.57% $296,867 $4,207 2.62% 12.49% ‐48.39% $4,531 $0 19.38% ‐26.86% ‐56.85% $297,033 $4,214 ‐16.58% ‐8.50% ‐55.29% $4,516 $0 ‐100.00% ‐35.92% ‐10.67% ‐3.17% Mortga ge‐ba cked s ecuri ti es (GSE a nd pri va te i s s ue) As s et‐ba cked s ecuri ti es Res i denti al mortgage ori gi na ti ons Closed‐end mortgage originated for sale (quarter) Open‐end HELOC originated for sale (quarter) Closed‐end mortgage originations sold (quarter) Open‐end HELOC originations sold (quarter) Liabilities $6,731,998 $170,320 ‐8.64% ‐1.29% Depos i ts $4,939,556 $149,005 2.39% ‐0.42% 1.26% Tota l other borrowi ngs $1,198,858 $29,099 ‐51.10% ‐7.70% ‐24.12% $165,875 $8,119 ‐61.30% ‐15.14% ‐46.64% $843,488 $27,024 9.52% 2.76% 8.48% FHLB advances Equity Equi ty ca pi tal a t qua rter end Performance Ratios Median Levels Q3 2008 Weighted Average Ti er 1 l evera ge ra ti o Median Previous Quarter Previous Year Median Q2 2010 Ratios Median Median 8.06% 8.31% 7.14% 8.10% 7.72% Ti er 1 ri s k bas ed capi ta l rati o 11.43% 11.72% 8.89% 11.43% 10.25% Tota l ri s k ba s ed ca pi tal ra ti o 14.60% 15.09% 11.70% 14.86% 13.18% 7.67% 8.09% 5.56% 6.79% 3.07% 0.84% 0.93% 0.74% 0.60% 0.32% 3.94% 3.99% 3.46% 4.01% 3.42% Coverage ra ti o {(ALLL+Al l oc tra ns fer ri s k)/Noncurrent l oa ns )} 68.23% 66.95% 75.66% 61.26% 61.22% Los s provi s i on to net charge‐offs (qtr) 76.15% 94.83% 146.08% 106.74% 141.14% 3.33% 2.41% 1.60% 2.78% 2.45% 3 Return on equi ty Return on a s s ets 3 Net i nteres t margi n 3 Net charge‐offs to a verage l oa ns a nd l ea s es 3 3. Quarterly, annualized. Asset Quality Noncurrent Loans (% of Total Loan Type) Q2 2010 Weighted Average Q3 2008 Previous Quarter Previous Year Median Median Median Median Construction & development 19.31% 19.14% 7.41% 18.70% Closed‐end 1‐4 family residential 14.46% 10.22% 5.01% 11.09% 8.19% 2.00% 1.61% 1.26% 1.34% 1.25% Home equity 13.12% Credit card 2.62% 2.80% 2.28% 3.12% 3.41% Other consumer 1.80% 1.19% 0.63% 1.20% 1.09% Commercial & Industrial 3.35% 2.45% 0.88% 2.57% 2.29% Commercial real estate 5.57% 4.79% 1.08% 4.80% 3.25% Total loans 6.26% Charge‐Offs (% of Total Loan Type) 5.04% 2.37% Q2 2010 Weighted Average Q3 2008 Median 5.25% 4.43% Previous Quarter Median Median Previous Year Median Construction & development 1.29% 1.11% 0.64% 1.26% 1.11% Closed‐end 1‐4 family residential 0.53% 0.48% 0.39% 0.51% 0.42% Home equity 0.85% 0.68% 0.49% 0.75% 0.76% Credit card 3.12% 2.81% 1.50% 3.66% 2.78% Other consumer 0.75% 0.43% 0.42% 0.49% 0.55% Commercial & Industrial 0.59% 0.51% 0.20% 0.46% 0.53% Commercial real estate 0.38% 0.30% 0.04% 0.26% 0.12% Total loans 0.92% 0.63% 0.44% 0.73% 0.64% Institutions in Group Independent Depository Institutions Bank Holding Companies 13 0 Total Assets of Depository Institutions in Group 7,588,394 % of Total Assets of All Depository Institutions 62.3% 1. For depository institutions owned by multi‐bank holding companies, asset size groups are assigned by the total combined assets of depository institutions owned by the same bank holding company. All data are consolidated by bank holding company when applicable, and changes are calculated based on the consolidated figures. 2. Increases are largely due to accounting changes implemented in the first quarter of 2010 (the implementation of FAS 166 and 167). Source: Cal l a nd Thri ft Fi nanci a l Report Data 8 II. CPP Depository Institutions with Assets Between $10 Billion and $100 Billion1 Q2 2010 Selected balance and off‐balance sheet items $ millions (aggregate) Median % Change $ millions (median) Q3 2008 From Previous Quarter From Previous Year Assets $1,230,349 $17,692 ‐2.93% ‐1.51% Loa ns $710,481 $10,041 ‐14.77% ‐1.63% ‐9.60% $53,189 $876 ‐43.95% ‐10.86% ‐34.81% Construction & development Closed‐end 1‐4 family residential ‐2.79% $110,724 $2,079 ‐10.41% ‐0.44% ‐5.55% Home equity $50,861 $584 6.62% ‐0.50% ‐1.53% Credit card $67,860 $1 ‐3.05% 0.67% ‐1.46% Other consumer $45,140 $312 ‐13.33% ‐1.79% ‐7.33% Commercial & Industrial $159,060 $2,227 ‐17.72% ‐1.86% ‐13.16% Commercial real estate $147,423 $2,556 2.25% ‐1.53% ‐2.12% $650,020 $3,610 ‐19.63% ‐2.18% ‐7.92% $59,712 $0 ‐37.79% ‐3.63% ‐21.41% $122,298 $1,926 15.11% 1.05% 3.13% $5,017 $0 ‐94.66% ‐1.20% ‐10.11% Unus ed commi tments Securi ti za ti on outs ta ndi ng pri nci pa l Mortga ge‐ba cked s ecuri ti es (GSE a nd pri va te is s ue) As s et‐ba cked s ecurities Other s ecurities $69,280 $845 3.81% 0.42% ‐12.13% $136,768 $961 100.79% ‐15.38% 9.11% $5,841 $33 60.27% 10.89% ‐51.17% $14 $0 ‐52.83% 50.64% ‐19.78% $5,571 $42 35.26% 2.62% ‐53.09% $13 Ca s h & ba l a nces due $0 ‐10.79% 97.82% ‐10.79% ‐2.43% Res i denti a l mortga ge origina ti ons Closed‐end mortgage originated for sale (quarter) Open‐end HELOC originated for sale (quarter) Closed‐end mortgage originations sold (quarter) Open‐end HELOC originations sold (quarter) Liabilities $1,087,370 $15,723 ‐3.87% ‐1.92% Depos its $858,223 $12,460 6.93% ‐1.54% ‐0.69% Tota l other borrowi ngs $153,324 $2,234 ‐38.86% ‐1.88% ‐26.61% $35,112 $544 ‐44.06% 0.00% ‐25.32% $141,097 $1,914 13.01% 2.03% 10.78% FHLB a dva nces Equity Equi ty ca pi ta l a t qua rter end Performance Ratios Median Levels Q2 2010 Ratios Weighted Average Q3 2008 Previous Year Median Median Previous Quarter Median Median Ti er 1 l evera ge ra tio 10.22% 8.50% 7.78% 8.10% 8.17% Ti er 1 ris k ba s ed ca pi ta l ra tio 12.66% 11.84% 9.37% 11.47% 10.17% Tota l ris k ba s ed ca pi ta l ra ti o 15.67% 14.25% 11.38% 13.63% 12.28% 3.03% 3.96% 1.82% 2.47% ‐7.76% 0.34% 0.47% 0.18% 0.25% ‐0.84% 3.41% 3.47% 3.34% 3.38% 3.17% Covera ge ra ti o {(ALLL+All oc tra ns fer ri s k)/Noncurrent l oa ns )} 77.27% 71.47% 75.98% 64.19% 60.27% Los s provi s i on to net cha rge‐offs (qtr) 88.56% 104.17% 180.30% 112.51% 132.64% 2.86% 1.59% 0.89% 1.79% 2.09% 2 Return on equi ty Return on a s s ets 2 Net i nteres t ma rgin 2 Net cha rge‐offs to a vera ge l oa ns a nd l ea s es 2 2. Quarterly, annualized. Asset Quality Noncurrent Loans (% of Total Loan Type) Construction & development Q3 2008 Median Previous Quarter Previous Year Median Q2 2010 Weighted Average Median Median 17.98% 14.96% 6.38% 15.07% 13.14% Closed‐end 1‐4 family residential 5.76% 3.64% 1.53% 3.76% 3.36% Home equity 1.07% 0.93% 0.68% 0.97% 0.93% Credit card 3.00% 1.04% 0.95% 0.85% 1.68% Other consumer 1.24% 0.63% 0.47% 0.88% 0.75% Commercial & Industrial 2.49% 2.22% 0.76% 2.24% 2.35% Commercial real estate 4.44% 3.35% 0.96% 3.22% 2.42% Total loans 4.47% 3.77% 1.88% 4.29% Charge‐Offs (% of Total Loan Type) Q3 2008 Q2 2010 Weighted Average Median 4.26% Previous Quarter Median Median Previous Year Median Construction & development 2.07% 1.31% 0.64% 1.38% 1.59% Closed‐end 1‐4 family residential 0.51% 0.27% 0.05% 0.24% 0.20% Home equity 0.37% 0.27% 0.09% 0.17% 0.16% Credit card 2.10% 1.06% 0.88% 1.28% 1.96% Other consumer 0.48% 0.39% 0.28% 0.36% 0.65% Commercial & Industrial 0.63% 0.47% 0.13% 0.44% 0.49% Commercial real estate 0.56% 0.25% 0.05% 0.26% 0.20% Total loans 0.79% 0.42% 0.24% 0.48% 0.54% Institutions in Group Independent Depository Institutions Bank Holding Companies 38 3 Total Assets of Depository Institutions in Group % of Total Assets of All Depository Institutions 1,230,349 10.1% 1. For depository institutions owned by multi‐bank holding companies, asset size groups are assigned by the total combined assets of depository institutions owned by the same bank holding company. All data are consolidated by bank holding company when applicable, and changes are calculated based on the consolidated figures. Source: Ca l l a nd Thrift Fi na nci a l Report Da ta 9 III. CPP Depository Institutions with Assets Between $1 Billion and $10 Billion1 Q2 2010 Selected balance and off‐balance sheet items $ millions (aggregate) Median % Change $ millions (median) Q3 2008 From Previous Quarter From Previous Year Assets $485,495 $1,926 3.13% ‐0.61% ‐1.22% Loa ns $335,785 $1,373 ‐5.44% ‐1.19% ‐5.27% Construction & development $38,782 $139 ‐35.88% ‐6.05% ‐26.10% Closed‐end 1‐4 family residential $64,743 $266 ‐4.65% ‐0.80% ‐5.78% Home equity $19,502 $64 7.10% 0.19% 1.12% $294 $0 ‐12.09% 0.59% ‐2.38% Credit card Other consumer $15,517 $31 ‐22.36% ‐4.30% ‐14.69% Commercial & Industrial $51,494 $162 ‐13.26% ‐0.91% ‐8.68% Commercial real estate $114,022 $468 7.91% ‐0.10% 2.48% $61,768 $219 ‐25.80% ‐3.44% ‐11.56% $261 $0 ‐22.59% ‐1.67% ‐28.99% $46,228 $158 21.93% ‐1.56% ‐4.90% $90 $0 ‐87.45% ‐5.53% ‐48.69% Other s ecurities $34,392 $143 20.69% 0.43% 9.73% Ca s h & ba l a nces due $32,971 $99 99.58% 1.24% 32.71% $13,270 $13 53.09% 27.41% ‐52.23% $4 $0 ‐84.76% 47.97% ‐89.86% $11,889 $13 33.24% 9.04% ‐54.04% $0 $0 0.00% 0.00% ‐100.00% ‐1.09% Unus ed commi tments Securi ti za ti on outs ta ndi ng pri nci pa l Mortga ge‐ba cked s ecuri ties (GSE a nd pri va te i s s ue) As s et‐ba cked s ecurities Res i denti a l mortga ge ori gi na ti ons Closed‐end mortgage originated for sale (quarter) Open‐end HELOC originated for sale (quarter) Closed‐end mortgage originations sold (quarter) Open‐end HELOC originations sold (quarter) Liabilities $435,639 $1,735 3.27% ‐0.70% Depos i ts $386,632 $1,573 8.90% ‐0.60% 1.18% Tota l other borrowi ngs $43,300 $152 ‐36.93% ‐3.11% ‐21.10% FHLB a dva nces $20,930 $84 ‐43.78% ‐0.84% ‐23.66% $49,500 $187 12.82% 1.44% 3.60% Equity Equi ty ca pi ta l a t qua rter end Performance Ratios Median Levels Q2 2010 Ratios Weighted Average Ti er 1 l evera ge ra tio Q3 2008 Previous Year Median Median Previous Quarter Median Median 8.70% 8.70% 8.22% 8.65% 8.54% Ti er 1 ri s k ba s ed ca pi ta l ra ti o 12.01% 11.59% 9.84% 11.42% 10.71% Tota l ri s k ba s ed ca pi ta l ra ti o 13.45% 12.93% 11.03% 12.78% 12.11% ‐2.48% 3.73% 4.67% 3.83% 1.72% ‐0.25% 0.39% 0.47% 0.41% 0.17% 3.72% 3.76% 3.66% 3.61% 3.44% 2 Return on equi ty Return on a s s ets 2 Net i nteres t ma rgi n 2 Covera ge ra ti o {(ALLL+Al l oc tra ns fer ri s k)/Noncurrent l oa ns )} Net cha rge‐offs to a vera ge l oa ns a nd l ea s es 2 52.14% 58.76% 79.49% 59.74% 60.79% 106.24% Los s provi s i on to net cha rge‐offs (qtr) 112.28% 153.60% 118.82% 136.81% 2.04% 1.17% 0.52% 1.04% 1.11% 2. Quarterly, annualized. Asset Quality Noncurrent Loans (% of Total Loan Type) Construction & development Q3 2008 Median Previous Quarter Previous Year Median Q2 2010 Weighted Average Median Median 16.28% 11.07% 4.28% 10.46% 8.44% Closed‐end 1‐4 family residential 3.74% 2.85% 1.27% 2.68% 2.39% Home equity 1.33% 0.74% 0.33% 0.73% 0.54% Credit card 1.05% 0.00% 0.00% 0.00% 0.00% Other consumer 1.64% 0.50% 0.41% 0.52% 0.54% Commercial & Industrial 2.60% 1.80% 0.95% 1.93% 1.85% Commercial real estate 3.85% 2.73% 0.77% 2.63% 1.77% Total loans 4.73% 3.55% 1.70% 3.65% Charge‐Offs (% of Total Loan Type) Q3 2008 Q2 2010 Weighted Average Median 3.01% Previous Quarter Median Median Previous Year Median Construction & development 1.66% 0.76% 0.15% 0.59% 0.34% Closed‐end 1‐4 family residential 0.35% 0.17% 0.04% 0.16% 0.12% Home equity 0.30% 0.09% 0.00% 0.10% 0.07% Credit card 1.40% 0.56% 0.28% 0.84% 0.50% Other consumer 0.32% 0.33% 0.33% 0.37% 0.42% Commercial & Industrial 0.54% 0.32% 0.18% 0.33% 0.39% Commercial real estate 0.37% 0.14% 0.00% 0.11% 0.04% Total loans 0.55% 0.33% 0.14% 0.30% 0.29% Institutions in Group Independent Depository Institutions Bank Holding Companies 163 19 Total Assets of Depository Institutions in Group 485,495 % of Total Assets of All Depository Institutions 4.0% 1. For depository institutions owned by multi‐bank holding companies, asset size groups are assigned by the total combined assets of depository institutions owned by the same bank holding company. All data are consolidated by bank holding company when applicable, and changes are calculated based on the consolidated figures. Source: Ca l l a nd Thrift Fi na nci a l Report Da ta 10 IV. CPP Depository Institutions with Assets Less Than $1 Billion1 Q2 2010 Selected balance and off‐balance sheet items $ millions (aggregate) Median % Change $ millions (median) Q3 2008 From Previous Quarter From Previous Year Assets $171,625 $294 10.02% 0.21% 3.77% Loa ns $122,307 $210 2.79% ‐0.35% ‐0.48% Construction & development $13,962 $19 ‐30.31% ‐5.50% ‐21.30% Closed‐end 1‐4 family residential $25,177 $35 10.43% 0.68% 2.03% $6,904 $8 16.17% 0.05% 2.77% $94 $0 ‐4.75% 2.44% 2.50% $3,660 $3 ‐17.11% ‐2.55% ‐10.17% Home equity Credit card Other consumer Commercial & Industrial $18,209 $26 ‐4.72% ‐1.27% ‐3.94% Commercial real estate $42,977 $70 14.26% 0.26% 5.08% $17,880 $29 ‐17.36% ‐3.10% ‐7.55% $25 $0 ‐7.80% 10.35% 35.39% $12,865 $12 ‐0.96% ‐4.40% ‐11.68% $22 $0 ‐100.00% ‐1.77% ‐100.00% Other s ecurities $12,947 $16 14.71% 0.03% 11.77% Ca s h & ba l a nces due $11,326 $15 111.72% 6.69% 32.44% $3,108 $0 58.06% 33.09% ‐52.47% $0 $0 ‐100.00% 0.00% ‐100.00% $2,820 $0 43.78% 12.42% ‐49.60% $0 $0 ‐100.00% 0.00% 0.00% Liabilities $154,738 $269 9.45% 0.15% 3.66% Depos i ts $139,453 $243 14.37% 0.60% 6.28% $14,027 $17 ‐24.57% ‐0.10% ‐14.31% $9,589 $12 ‐23.26% 0.00% ‐13.66% $16,878 $28 20.54% 1.34% 4.41% Unus ed commi tments Securi ti za ti on outs ta ndi ng pri nci pa l Mortga ge‐ba cked s ecuri ti es (GSE a nd pri va te i s s ue) As s et‐ba cked s ecurities Res i denti a l mortga ge ori gi na ti ons Closed‐end mortgage originated for sale (quarter) Open‐end HELOC originated for sale (quarter) Closed‐end mortgage originations sold (quarter) Open‐end HELOC originations sold (quarter) Tota l other borrowi ngs FHLB a dva nces Equity Equi ty ca pi ta l a t qua rter end Performance Ratios Median Levels Q2 2010 Ratios Weighted Average Ti er 1 l evera ge ra ti o Q3 2008 Previous Year Median Median Previous Quarter Median Median 9.14% 9.11% 8.83% 9.14% 9.35% Ti er 1 ri s k ba s ed ca pi ta l ra ti o 12.23% 12.12% 10.75% 12.04% 11.88% Tota l ri s k ba s ed ca pi ta l ra ti o 13.52% 13.41% 11.97% 13.32% 13.17% ‐4.22% 3.57% 3.34% 3.76% 1.32% ‐0.41% 0.36% 0.33% 0.36% 0.14% 3.80% 3.80% 3.71% 3.78% 3.57% 2 Return on equi ty Return on a s s ets 2 Net i nteres t ma rgi n 2 Covera ge ra ti o {(ALLL+Al l oc tra ns fer ri s k)/Noncurrent l oa ns )} Net cha rge‐offs to a vera ge l oa ns a nd l ea s es 2 53.48% 64.34% 95.55% 63.49% 63.80% 108.55% Los s provi s i on to net cha rge‐offs (qtr) 104.65% 146.61% 106.33% 128.21% 1.57% 0.65% 0.16% 0.46% 0.52% 2. Quarterly, annualized. Asset Quality Noncurrent Loans (% of Total Loan Type) Construction & development Q3 2008 Median Previous Quarter Previous Year Median Q2 2010 Weighted Average Median Median 11.28% 6.44% 1.55% 6.46% 4.49% Closed‐end 1‐4 family residential 3.21% 1.84% 0.50% 1.98% 1.36% Home equity 1.16% 0.00% 0.00% 0.00% 0.00% Credit card 1.15% 0.00% 0.00% 0.08% 0.26% Other consumer 0.77% 0.12% 0.09% 0.18% 0.18% Commercial & Industrial 2.79% 1.42% 0.39% 1.30% 0.89% Commercial real estate 3.12% 1.80% 0.20% 1.64% 0.71% Total loans 3.80% 2.87% 1.13% 2.68% Charge‐Offs (% of Total Loan Type) Q3 2008 Q2 2010 Weighted Average Median 2.15% Previous Quarter Median Median Previous Year Median Construction & development 1.21% 0.00% 0.00% 0.00% 0.00% Closed‐end 1‐4 family residential 0.29% 0.06% 0.00% 0.01% 0.00% Home equity 0.24% 0.00% 0.00% 0.00% 0.00% Credit card 1.08% 0.29% 0.16% 0.54% 0.23% Other consumer 0.45% 0.08% 0.07% 0.07% 0.10% Commercial & Industrial 0.55% 0.12% 0.00% 0.06% 0.07% Commercial real estate 0.23% 0.00% 0.00% 0.00% 0.00% Total loans 0.41% 0.18% 0.05% 0.13% 0.15% Institutions in Group Independent Depository Institutions Bank Holding Companies 352 115 Total Assets of Depository Institutions in Group % of Total Assets of All Depository Institutions 171,625 1.4% 1. For depository institutions owned by multi‐bank holding companies, asset size groups are assigned by the total combined assets of depository institutions owned by the same bank holding company. All data are consolidated by bank holding company when applicable, and changes are calculated based on the consolidated figures. Source: Ca l l a nd Thrift Fi na nci a l Report Da ta 11 V. Non‐CPP Depository Institutions with Assets Between $10 Billion and $100 Billion1 Q2 2010 Selected balance and off‐balance sheet items $ millions (aggregate) Median % Change $ millions (median) Q3 2008 From Previous Quarter From Previous Year Assets $690,175 $17,658 9.31% ‐0.02% 1.41% Loa ns $394,204 $11,214 ‐4.22% ‐0.98% ‐2.61% Construction & development $11,237 $119 ‐37.93% ‐5.50% ‐31.38% $160,162 $2,647 ‐4.71% ‐0.49% ‐5.57% Home equity $31,933 $432 2.03% ‐1.18% ‐2.15% Credit card $47,040 $0 4.98% 3.05% 5.04% Other consumer $35,314 $210 ‐19.23% ‐3.62% ‐8.89% Closed‐end 1‐4 family residential Commercial & Industrial $35,190 $639 ‐9.04% ‐1.12% ‐9.85% Commercial real estate $38,572 $798 ‐5.20% ‐1.47% ‐4.62% $384,635 $2,561 ‐14.00% ‐1.05% ‐7.53% $1,151 $0 ‐100.00% 4.28% ‐100.00% $125,887 $2,465 17.50% 2.93% 7.06% $3,086 $0 ‐48.67% 4.10% ‐50.20% Other s ecurities $28,508 $1,620 34.91% 2.18% 21.34% Ca s h & ba l a nces due $38,473 $794 60.28% 1.32% 26.58% $8,852 $121 43.29% 37.21% ‐55.83% $0 $0 0.00% 0.00% 0.00% $8,231 $105 33.78% 0.01% ‐61.22% $0 $0 0.00% 0.00% 0.00% 1.50% Unus ed commitments Securi ti za ti on outs ta ndi ng pri nci pa l Mortga ge‐ba cked s ecuri ti es (GSE a nd pri va te is s ue) As s et‐ba cked s ecurities Res i denti a l mortga ge ori gi na ti ons Closed‐end mortgage originated for sale (quarter) Open‐end HELOC originated for sale (quarter) Closed‐end mortgage originations sold (quarter) Open‐end HELOC originations sold (quarter) Liabilities $616,189 $14,921 6.63% ‐0.16% Depos its $494,229 $12,393 13.22% ‐0.04% 4.76% Tota l other borrowi ngs $110,497 $1,893 ‐40.88% ‐1.05% ‐22.36% $14,461 $106 ‐45.55% ‐5.43% ‐48.08% $73,927 $1,803 18.46% 3.62% 12.27% FHLB a dva nces Equity Equi ty ca pi ta l a t qua rter end Performance Ratios Median Levels Q2 2010 Ratios Weighted Average Ti er 1 l evera ge ra ti o Q3 2008 Previous Year Median Median Previous Quarter Median Median 9.41% 8.40% 7.66% 8.44% 7.63% Ti er 1 ris k ba s ed ca pi ta l ra ti o 16.36% 13.77% 10.91% 13.98% 11.55% Tota l ris k ba s ed ca pi ta l ra ti o 17.65% 15.79% 11.98% 15.71% 12.91% 10.22% 10.78% 5.68% 10.59% 9.43% 1.08% 1.05% 0.49% 0.96% 0.83% 2 Return on equi ty Return on a s s ets 2 Net i nteres t ma rgin 2 3.50% Los s provi s i on to net cha rge‐offs (qtr) Net cha rge‐offs to a vera ge l oa ns a nd l ea s es 2 3.70% 3.35% 3.59% 3.20% 45.09% 61.72% 109.42% 63.96% 69.16% 100.02% Covera ge ra ti o {(ALLL+All oc tra ns fer ri s k)/Noncurrent l oa ns )} 102.87% 206.42% 117.71% 130.53% 1.51% 0.85% 0.65% 1.04% 0.96% 2. Quarterly, annualized. Asset Quality Noncurrent Loans (% of Total Loan Type) Construction & development Q3 2008 Median Previous Quarter Previous Year Median Q2 2010 Weighted Average Median Median 14.80% Closed‐end 1‐4 family residential 11.68% 3.99% 13.31% 8.70% 7.04% 2.95% 1.05% 2.89% 2.07% Home equity 1.21% 0.55% 0.30% 0.54% 0.80% Credit card 1.63% 1.88% 1.15% 1.98% 1.36% Other consumer 0.27% 0.35% 0.28% 0.60% 0.45% Commercial & Industrial 1.80% 1.47% 0.31% 0.95% 1.15% Commercial real estate 2.97% 2.17% 0.11% 1.81% 0.81% Total loans 4.22% 2.63% 1.06% 2.51% 2.29% Charge‐Offs (% of Total Loan Type) Q3 2008 Median Previous Quarter Previous Year Median Q2 2010 Weighted Average Median Median Construction & development 0.87% 0.34% 0.03% 0.28% 0.26% Closed‐end 1‐4 family residential 0.15% 0.08% 0.04% 0.08% 0.13% Home equity 0.75% 0.14% 0.05% 0.11% 0.17% Credit card 1.64% 1.44% 0.96% 1.48% 1.62% Other consumer 0.39% 0.37% 0.23% 0.34% 0.43% Commercial & Industrial 0.22% 0.15% 0.12% 0.20% 0.09% Commercial real estate 0.16% 0.04% 0.00% 0.04% 0.02% Total loans 0.42% 0.24% 0.18% 0.28% 0.25% Bank Holding Companies Independent Depository Institutions 13 15 Institutions in Group Total Assets of Depository Institutions in Group 690,175 % of Total Assets of All Depository Institutions 5.7% 1. For depository institutions owned by multi‐bank holding companies, asset size groups are assigned by the total combined assets of depository institutions owned by the same bank holding company. All data are consolidated by bank holding company when applicable, and changes are calculated based on the consolidated figures. Source: Ca l l a nd Thrift Fi na nci a l Report Da ta 12 VI. Non‐CPP Depository Institutions with Assets Between $1 Billion and $10 Billion1 Q2 2010 Selected balance and off‐balance sheet items $ millions (aggregate) Median % Change $ millions (median) Q3 2008 From Previous Quarter From Previous Year Assets $833,152 $1,646 6.12% 0.58% 2.30% Loa ns $520,353 $1,086 ‐1.17% ‐0.22% ‐2.33% Construction & development $43,653 $80 ‐31.93% ‐6.19% ‐23.11% $142,650 $231 ‐3.03% 0.47% ‐3.57% Home equity $23,928 $38 13.38% 0.58% 3.37% Credit card $11,793 $0 ‐0.26% 1.24% 2.86% Closed‐end 1‐4 family residential Other consumer $31,992 $16 ‐17.49% ‐2.32% ‐11.04% Commercial & Industrial $66,344 $112 ‐7.02% ‐0.81% ‐5.96% Commercial real estate $145,568 $307 10.32% 0.06% 3.34% $180,690 $183 ‐14.40% ‐2.19% ‐7.65% $1,919 $0 ‐33.19% ‐4.29% ‐8.99% $105,154 $147 ‐0.43% ‐2.99% ‐5.99% $1,473 $0 ‐100.00% 0.00% ‐46.29% Unus ed commitments Securi ti za ti on outs ta ndi ng pri nci pa l Mortga ge‐ba cked s ecuri ti es (GSE a nd pri va te is s ue) As s et‐ba cked s ecurities Other s ecurities $69,629 $162 19.22% 1.41% 14.40% Ca s h & ba l a nces due $65,067 $110 112.81% 0.96% 26.92% $8,411 $6 56.05% 19.55% ‐57.86% $27 $0 63.25% 29.60% 24.26% $7,473 $6 31.61% 0.51% ‐61.16% $1 $0 ‐92.78% ‐97.20% ‐97.28% 1.65% Res i denti a l mortga ge ori gi na ti ons Closed‐end mortgage originated for sale (quarter) Open‐end HELOC originated for sale (quarter) Closed‐end mortgage originations sold (quarter) Open‐end HELOC originations sold (quarter) Liabilities $741,462 $1,472 5.52% 0.41% Depos its $635,577 $1,313 12.38% 0.73% 4.49% Tota l other borrowi ngs $95,706 $137 ‐25.63% ‐2.49% ‐12.91% FHLB a dva nces $37,809 $72 ‐29.59% ‐1.17% ‐16.08% $91,392 $167 10.04% 1.91% 7.64% Equity Equi ty ca pi ta l a t qua rter end Performance Ratios Median Levels Q2 2010 Ratios Weighted Average Ti er 1 l evera ge ra ti o Q3 2008 Previous Year Median Median Previous Quarter Median Median 9.89% 8.84% 8.91% 8.76% 8.58% Ti er 1 ris k ba s ed ca pi ta l ra ti o 14.75% 12.69% 11.55% 12.48% 11.50% Tota l ris k ba s ed ca pi ta l ra ti o 16.03% 13.83% 12.71% 13.69% 12.64% 3.47% 6.59% 5.89% 6.13% 4.43% 0.38% 0.67% 0.64% 0.63% 0.46% 3.65% 3.57% 3.57% 3.48% 3.38% Covera ge ra ti o {(ALLL+All oc tra ns fer ri s k)/Noncurrent l oa ns )} 48.50% 69.17% 103.08% 66.59% 69.48% Los s provi s i on to net cha rge‐offs (qtr) 98.34% 117.84% 151.03% 139.02% 138.57% 1.59% 0.61% 0.28% 0.48% 0.49% 2 Return on equi ty Return on a s s ets 2 Net i nteres t ma rgin 2 Net cha rge‐offs to a vera ge l oa ns a nd l ea s es 2 2. Quarterly, annualized. Asset Quality Noncurrent Loans (% of Total Loan Type) Construction & development Q3 2008 Median Previous Quarter Previous Year Median Q2 2010 Weighted Average Median Median 15.33% Closed‐end 1‐4 family residential 8.42% 2.68% 7.93% 6.16% 3.65% 1.70% 0.82% 1.68% 1.36% Home equity 1.23% 0.50% 0.23% 0.46% 0.38% Credit card 1.66% 0.38% 0.17% 0.31% 0.60% Other consumer 0.47% 0.29% 0.21% 0.29% 0.27% Commercial & Industrial 2.45% 1.42% 0.56% 1.40% 1.13% Commercial real estate 3.92% 2.08% 0.71% 2.02% 1.27% Total loans 4.10% 2.41% 1.01% 2.39% 1.98% Charge‐Offs (% of Total Loan Type) Q3 2008 Median Previous Quarter Previous Year Median Q2 2010 Weighted Average Median Median Construction & development 1.41% 0.14% 0.00% 0.08% 0.14% Closed‐end 1‐4 family residential 0.18% 0.06% 0.01% 0.05% 0.04% Home equity 0.35% 0.00% 0.00% 0.00% 0.00% Credit card 2.24% 0.74% 0.58% 0.65% 0.82% Other consumer 0.27% 0.19% 0.19% 0.19% 0.24% Commercial & Industrial 0.36% 0.12% 0.06% 0.09% 0.11% Commercial real estate 0.35% 0.03% 0.00% 0.01% 0.00% Total loans 0.43% 0.18% 0.08% 0.14% 0.14% Bank Holding Companies Independent Depository Institutions 233 110 Institutions in Group Total Assets of Depository Institutions in Group 833,152 % of Total Assets of All Depository Institutions 6.8% 1. For depository institutions owned by multi‐bank holding companies, asset size groups are assigned by the total combined assets of depository institutions owned by the same bank holding company. All data are consolidated by bank holding company when applicable, and changes are calculated based on the consolidated figures. Source: Ca l l a nd Thrift Fi na nci a l Report Da ta 13 VII. Non‐CPP Depository Institutions with Assets Less Than $1 Billion1 Q2 2010 Selected balance and off‐balance sheet items $ millions (aggregate) Median % Change $ millions (median) Q3 2008 From Previous Quarter From Previous Year Assets $1,181,756 $132 7.54% 0.38% 3.55% Loa ns $780,236 $84 2.58% 0.50% 0.63% ‐17.13% Construction & development $66,825 0.09% 0.95% $1 11.07% 0.53% 2.81% $2,107 Other consumer ‐2.50% 4.70% $0 ‐0.98% 1.32% 3.35% $36,573 Credit card ‐25.53% $20 $29,607 Home equity $4 $226,759 Closed‐end 1‐4 family residential $3 ‐8.55% ‐0.58% ‐5.20% Commercial & Industrial $94,038 $8 ‐2.79% ‐0.19% ‐2.36% Commercial real estate $219,185 $18 9.37% ‐0.33% 2.98% ‐6.20% Unus ed commi tments $172,031 Mortga ge‐ba cked s ecuri ti es (GSE a nd pri va te is s ue) As s et‐ba cked s ecurities $9 ‐9.80% ‐3.11% $2,027 Securi ti za ti on outs ta ndi ng pri nci pa l $0 ‐1.94% ‐0.75% ‐0.85% $89,243 $4 ‐15.88% ‐5.20% ‐16.02% ‐37.50% $398 ‐82.27% ‐3.53% $14 8.74% 0.37% 8.25% $88,790 $8 74.18% 2.00% 20.55% $11,682 $0 36.43% 30.41% ‐65.57% $35 $0 ‐68.98% 17.20% ‐100.00% $10,609 $0 15.19% 8.96% ‐67.11% $22 Ca s h & ba l a nces due $0 $135,218 Other s ecurities $0 ‐100.00% ‐17.59% 417.70% 3.44% Res i denti a l mortga ge origina ti ons Closed‐end mortgage originated for sale (quarter) Open‐end HELOC originated for sale (quarter) Closed‐end mortgage originations sold (quarter) Open‐end HELOC originations sold (quarter) Liabilities $1,058,896 $118 7.55% 0.21% Depos i ts $976,789 $111 10.02% 0.31% 4.40% Tota l other borrowi ngs $73,277 $3 ‐28.47% ‐0.18% ‐13.69% FHLB a dva nces $45,492 $2 ‐25.02% 0.00% ‐11.97% $122,798 $14 7.57% 1.63% 4.88% Equity Equi ty ca pi ta l a t qua rter end Performance Ratios Median Levels Q2 2010 Ratios Weighted Average Ti er 1 l evera ge ra ti o Q3 2008 Previous Year Median Median Previous Quarter Median Median 9.88% 9.61% 10.05% 9.56% 9.63% Ti er 1 ris k ba s ed ca pi ta l ra ti o 14.37% 14.20% 14.30% 14.08% 13.94% Tota l ris k ba s ed ca pi ta l ra ti o 15.55% 15.35% 15.32% 15.21% 15.02% 4.00% 6.33% 6.91% 6.05% 5.24% 0.41% 0.69% 0.75% 0.64% 0.56% 3.80% 3.84% 3.90% 3.78% 3.75% 50.87% 74.93% 99.58% 74.80% 75.86% 109.93% 98.92% 97.23% 96.15% 104.58% 0.99% 0.18% 0.07% 0.12% 0.14% 2 Return on equi ty Return on a s s ets 2 Net i nteres t ma rgin 2 Covera ge ra ti o {(ALLL+All oc tra ns fer ri s k)/Noncurrent l oa ns )} Los s provi s i on to net cha rge‐offs (qtr) Net cha rge‐offs to a vera ge l oa ns a nd l ea s es 2 2. Quarterly, annualized. Asset Quality Noncurrent Loans (% of Total Loan Type) Construction & development Q3 2008 Median Previous Quarter Previous Year Median Q2 2010 Weighted Average Median Median 12.93% 0.12% 0.00% 0.18% Closed‐end 1‐4 family residential 2.56% 1.09% 0.51% 1.07% 0.00% 0.84% Home equity 1.24% 0.00% 0.00% 0.00% 0.00% Credit card 1.72% 0.00% 0.00% 0.00% 0.00% Other consumer 0.85% 0.25% 0.22% 0.24% 0.24% Commercial & Industrial 2.40% 0.61% 0.23% 0.63% 0.49% Commercial real estate 3.29% 0.90% 0.00% 0.78% 0.41% Total loans 3.41% 1.73% Charge‐Offs (% of Total Loan Type) Weighted Average 0.97% Q3 2008 Q2 2010 Median 1.70% 1.44% Previous Quarter Median Median Previous Year Median Construction & development 0.97% 0.00% 0.00% 0.00% Closed‐end 1‐4 family residential 0.15% 0.00% 0.00% 0.00% 0.00% 0.00% Home equity 0.17% 0.00% 0.00% 0.00% 0.00% Credit card 2.08% 0.00% 0.00% 0.00% 0.00% Other consumer 0.34% 0.05% 0.06% 0.04% 0.08% Commercial & Industrial 0.41% 0.00% 0.00% 0.00% 0.00% Commercial real estate 0.17% 0.00% 0.00% 0.00% 0.00% Total loans 0.27% 0.06% 0.03% 0.04% 0.05% Bank Holding Companies Independent Depository Institutions 4,039 1,875 Institutions in Group Total Assets of Depository Institutions in Group 1,181,756 % of Total Assets of All Depository Institutions 9.7% 1. For depository institutions owned by multi‐bank holding companies, asset size groups are assigned by the total combined assets of depository institutions owned by the same bank holding company. All data are consolidated by bank holding company when applicable, and changes are calculated based on the consolidated figures. Source: Ca l l a nd Thrift Fi na nci a l Report Da ta 14 Appendix A: Notes to Call and Thrift Financial Report Data Users The Treasury Department invested $205 billion in banking organizations participating in the Troubled Asset Relief Program’s Capital Purchase Program between October 28, 2008, and December 31, 2009. These investments went to 707 independent banks and bank and thrift holding companies. The summary tables above present analysis of Call and Thrift Financial Report data for the FDIC-insured institutions. Templates summarizing selected balance sheet items and performance and condition ratios were developed after consultation with members of an interagency working group. Changes in loan balances, commitments, securities, and residential real estate loan originations for sale address banks’ credit intermediation activities. 12 Weighted average performance ratios and median performance ratios were calculated for each group, as were weighted average and median noncurrent rates and gross charge-off rates (not net of recoveries) for major loan types. Data were collected for each quarter from Q3 2008 through Q2 2010, and percent changes were calculated for Q2 2010 as compared to Q1 2010, Q2 2009, and Q3 2008. Data items were “merger-adjusted” to include institutions that were acquired during the period from October 1, 2008, to June 30, 2010. Ally Bank, the subsidiary depository institution of Ally Financial Inc. (previously GMAC), was excluded from all groups as GMAC received TARP funds under the Automotive Industry Financing Program. Source: Treasury Analysis of Call and Thrift Financial Report Data 12 Call Report filers with assets over $1 billion or more than $10 million in mortgage origination for two consecutive quarters report residential loans originated for sale. 15 Section B: Consolidated Financial Statements for Bank Holding Companies (FR Y-9C Data) Analysis Many of Treasury’s investments through CPP have been made in bank holding companies, which own subsidiary depository institutions and may also own other permitted types of subsidiaries. 13 Many institutions in CPP indicated their intention to “downstream” funds to their subsidiary depository institutions, which are the primary vehicles for financial intermediation and traditional lending activity. The activity of these depository subsidiaries is thus included in Call and Thrift Financial Report data, which are filed by individual depository institutions. The Y-9C Report captures consolidated financial information from bank holding companies. That is, the Y-9C Report captures not only the financial information of the subsidiary depository institution(s) owned by a bank holding company, but also the financial information of any other subsidiary owned by that bank holding company. Examples of other subsidiaries that may be owned by bank holding companies include broker dealers, insurance companies, finance companies, and asset management firms. This type of information is not captured in Call and Thrift Financial Report data. As a result, Y-9C data typically present a fuller picture of bankingrelated activity for the banking organizations required to file them than Call and Thrift Financial Report data. In order to examine the possible effects of CPP and other stabilization initiatives on a range of financial institutions, the interagency group chose to present Y-9C data in addition to Call and Thrift Financial Report data. However, the aggregated Y-9C data can be somewhat more volatile, particularly in this period of financial crisis, for multiple reasons. In some cases, those bank holding companies with large non-depository subsidiaries were subject to greater or different market pressures. In addition, the population of reporting holding companies shifted significantly during this period as a noteworthy set of large financial firms chose to convert to bank holding company status between fourth quarter 2008 and first quarter 2009. Those institutions filed their first Y-9C reports in first quarter 2009. 14 Because the content of the Y-9C report closely follows that of the Call Report and Thrift Financial Report, the same line items that appear in the Call and Thrift Financial Report tables appear in the Y-9C data tables. For more detailed information on the data tables, see Appendix B: Note to Y-9C Data Users. The data tables are split into seven groups that mirror the seven reporting groups presented in the Call and Thrift Financial Report tables (except that asset size is assigned using the consolidate 13 Investments were made at the bank holding company level for all depository institutions owned by a bank holding company. Similarly, investments were made at the thrift holding company level for all depository institutions owned by a thrift holding company. Thrift holding companies are not required to file detailed consolidated financial reports. 14 Because data are not available prior to first quarter 2009 for those new bank holding companies, changes from third quarter 2008 were not calculated for those bank holding companies in the data analysis. 16 bank holding company asset size, not the asset size of the subsidiary depository institutions). The groups, which consist solely of top tier bank holding companies, are: Group Group I Group II Group III Group IV Group V Description CPP Participants with assets over $100 billion CPP Participants with assets between $10 and $100 billion CPP Participants with assets between $1 and $10 billion CPP Participants with assets under $1 billion Non-CPP Participants with assets between $10 and $100 billion Group VI Non-CPP Participants with assets between $1 and $10 billion Group VII Non-CPP Participants with assets under $1 billion Number of Institutions in Q2 2010 16 34 153 116 15 232 439 While median percentage changes from third quarter 2008, second quarter 2009 and first quarter 2010 to second quarter 2010 are presented for balance sheet items, these numbers should be used with caution for reasons discussed above. 17 Summary of Findings Note: All changes refer to the median change between third quarter 2008 and second quarter 2010, unless otherwise noted. Selected Balance and Off-Balance Sheet Items Overall Asset Growth Asset growth was positive in all groups except CPP holding companies with assets over $100 billion. Non-CPP holding companies with assets between $10 and $100 billion had the largest increase in total assets (12.5%). CPP holding companies with assets over $100 billion saw a decrease in assets of -5.5%. Loan Growth 15 Growth in total loans mixed across size groups with growth in Non-CPP holding companies with assets between $10 and $100 billion in assets and growth in CPP holding companies with assets under $1 billion in assets. Changes in outstanding loan balances by specific loan category varied both by loan category and by group. Construction and development loans, other consumer loans, and commercial and industrial loans decreased across all groups. Conversely, home equity loans and commercial real estate loans increased across all groups (with the exception of CPP holding companies with over $100 billion in assets, which experienced a decrease in both home equity and commercial real estate loans). As with Section A of this report, CPP holding companies with assets greater than $100 billion experienced the most growth in credit card loans. The growth was largely due to accounting changes implemented in the first quarter of 2010 (the implementation of FAS 166 and 167). Closed-end and Open-end Mortgage Originations 16 Closed-end mortgage originations (mortgages originated for sale and originations sold) increased in most groups. Only CPP holding companies with assets over $100 billion experienced negative growth in closed-end mortgage originations sold. Growth was mixed across groups for both open-end mortgage originations for sale and open-end originations sold, largely due to the small number of holding companies that reported open-end originations. Securities on Balance Sheet Mortgage-backed securities (GSE and private issue) experienced growth in all groups except for Non-CPP holding companies with assets less than $1 billion. Asset-backed securities (ABS) decreased in all groups. 15 All loan growth figures refer to the change in outstanding loan balances. 16 Only Y-9C filers with assets over $1 billion or more than $10 million in mortgage origination for two consecutive quarters are required to report residential loans originated for sale (see Appendix B: Notes Y-9C Data Users). 18 Other Asset Growth Unused commitments and securitization outstanding principal decreased in all groups (CPP and Non-CPP). Growth in cash & balances due increased in all groups with the largest increase in CPP holding companies with assets between $10 and $100 billion (161.3%). Other securities also increased in all groups with the largest increase in CPP holding companies with assets between $1 and $100 billion (33.5%). Liabilities Total liabilities increased in all groups except for CPP holding companies with assets over $10 billion. Non-CPP holding companies with assets between $10 and $100 billion had the largest increase in total liabilities (16.1%). Deposits grew in all groups (CPP and Non-CPP). The largest growth in deposits was in Non-CPP holding companies with assets between $10 and $100 billion (17.3%), and the smallest growth was in CPP holding companies with assets over $100 billion (2.5%). Total other borrowings decreased in all groups. Equity All groups experienced growth in equity capital since third quarter 2008. CPP holding companies had higher growth in equity capital than Non-CPP holding companies in each comparable size group. Performance Ratios 17 Capital Ratios With the exception of Non-CPP holding companies with under $1 billion in assets, all groups had increases in all three median capital ratios. In second quarter 2010, CPP holding companies with assets between $10 and $100 billion had the highest median tier one leverage ratio (10.3%). Non-CPP holding companies with assets between $10 and $100 billion had the highest median tier one risk based capital ratio (13.2%). CPP holding companies with assets greater than $100 billion had the highest median total risk based capital ratio (15.8%). Earnings Ratios Median return on equity, median return on assets and median net interest margins decreased across all groups (CPP and Non-CPP) with the exception CPP holding companies with assets over $100 billion which had an increase in median return on equity and no change in median return on assets. 17 Performance ratios are displayed as weighted averages and medians for each group for the current quarter (see Appendix B: Notes to Y-9C Data Users). Performance ratios are displayed as medians for past quarters. 19 Loss Coverage Ratios The median coverage ratio (allowance for loan and lease losses to noncurrent loans) and the median ratio of loss provisions to net charge-offs (for the quarter) decreased in all groups (CPP and Non-CPP). The median ratio of net charge-offs to average loans and leases increased in all groups. Asset Quality: Noncurrent Loans The median ratio of total noncurrent loans as a percentage of total loans increased across all groups (CPP and Non-CPP). The largest increase in the median ratio of total noncurrent loans to total loans was in CPP holding companies with assets between $10 and $100 billion. All groups (CPP and Non-CPP) experienced increases in the median ratio of noncurrent loans to loans within specific loan categories. The largest increases in median ratios were in construction and development loans and commercial real estate loans. Asset Quality: Gross Charge-offs The median ratio of total charge-offs to total loans increased in all size groups. The changes in the median ratio of charge-offs to loans within specific loan categories was mixed. 20 I. CPP Bank Holding Companies with Assets Greater than $100 Billion Q2 2010 Selected balance and off‐balance sheet items $ millions ($Aggregate) Median % Change $ millions (median) Q3 2008 From Previous Quarter From Previous Year Assets $11,091,617 $248,857 ‐5.5% ‐0.6% Loa ns $4,338,849 $110,414 ‐9.4% ‐1.5% 3.0% $127,943 $5,864 ‐43.5% ‐9.0% ‐28.1% ‐7.6% Construction & development Closed‐end 1‐4 family residential $1,056,891 ‐6.6% 0.5% $11,716 ‐1.4% ‐1.3% ‐3.8% $597,221 1 $20,356 $442,749 Home equity Credit card 3.3% $2,688 39.0% ‐1.5% 76.5% Other consumer $478,671 $11,960 ‐7.3% 0.2% 9.8% Commercial & Industrial $688,355 $19,478 ‐17.7% ‐1.0% ‐11.4% Commercial real estate $293,999 $12,939 ‐5.3% ‐1.5% ‐5.5% Unus ed commitments $401,311 ‐92.0% ‐2.7% ‐28.8% $30,119 17.8% ‐2.1% ‐4.1% $1,021 ‐43.3% ‐3.5% ‐19.8% $2,027,851 $48,732 26.5% ‐0.4% 15.1% $771,095 $22,781 2.2% 2.5% 7.4% $211,360 $2,989 2.6% 12.1% ‐47.7% $1,677 $0 ‐30.0% ‐19.9% ‐51.3% $288,933 $4,380 ‐11.8% 3.3% ‐49.0% $1,919 Other s ecurities Ca s h & ba l a nces due ‐3.4% ‐45.1% $98,271 As s et‐ba cked s ecurities ‐83.5% $2,149 $801,477 Mortga ge‐ba cked s ecuri ti es (GSE a nd pri va te i s s ue) $12,796 $1,960,793 Securi tiza tion outs ta nding principa l $0 ‐37.9% ‐44.6% ‐27.8% 1.6% Res identi a l mortga ge originations Closed‐end mortgage originated for sale (quarter) Open‐end HELOC originated for sale (quarter) Closed‐end mortgage originations sold (quarter) Open‐end HELOC originations sold (quarter) Liabilities $10,054,472 $217,809 ‐6.9% ‐1.0% Depos its $4,747,713 $118,000 2.5% ‐1.1% 1.4% Tota l other borrowi ngs $2,121,572 $40,087 ‐28.8% ‐4.3% ‐4.0% $1,017,243 $28,273 22.8% 2.8% 6.3% Equity Equity ca pita l a t qua rter end Performance Ratios Median Levels Q2 2010 Ra tios Weighted Average Ti er 1 levera ge ra tio Q3 2008 Median Median Previous Quarter Median Previous Year Median 7.3% 8.1% 8.0% 8.2% 8.3% Ti er 1 ris k ba s ed ca pita l ra ti o 11.9% 12.0% 8.6% 11.5% 12.0% Tota l ris k ba s ed ca pita l ra tio 15.5% 15.8% 12.3% 15.8% 15.6% 5.7% 6.3% 4.8% 3.1% 4.0% 0.5% 0.6% 0.6% 0.3% 0.4% 1.7% 2.0% 2.7% 1.0% 1.8% Covera ge ra tio {(ALLL+Al loc tra ns fer ris k)/Noncurrent loa ns )} 69.2% 54.9% 81.5% 54.0% 60.5% Los s provis ion to net cha rge‐offs (qtr) 87.3% 98.7% 169.7% 100.5% 154.9% 2.3% 1.7% 1.5% 0.9% 1.2% 2 Return on equity Return on a s s ets 2 Net i nteres t ma rgin 2 Net cha rge‐offs to a vera ge l oa ns a nd leases 2 2. Quarterly, annualized. Asset Quality Noncurrent Loa ns (% of Tota l Loa n Type) Q2 2010 Weighted Average Q3 2008 Previous Quarter Median Median Median Previous Year Median Construction & development 18.7% 17.9% 6.6% 17.9% 12.7% Closed‐end 1‐4 family residential 14.4% 9.5% 4.4% 10.4% 8.1% Home equity 2.0% 1.8% 1.3% 1.6% 1.2% Credit card 3.0% 3.0% 2.4% 3.5% 3.3% Other consumer 1.6% 1.0% 0.7% 1.0% 0.9% Commercial & Industrial 3.5% 2.5% 0.9% 2.8% 2.3% Commercial real estate 6.2% 5.8% 1.3% 6.5% 3.6% Total loans 6.2% 4.9% 2.7% 4.9% Cha rge‐Offs (% of Tota l Loa n Type) Q3 2008 Q2 2010 Weighted Average Median Previous Quarter Median 4.2% Previous Year Median Median Construction & development 2.8% 2.5% 1.0% 1.2% 1.9% Closed‐end 1‐4 family residential 1.2% 1.0% 0.8% 0.5% 0.6% Home equity 1.9% 1.4% 1.3% 0.7% 1.4% Credit card 5.8% 5.7% 4.3% 3.2% 5.5% Other consumer 1.9% 0.9% 1.5% 0.5% 1.1% Commercial & Industrial 1.2% 0.9% 0.6% 0.4% 0.9% Commercial real estate 0.8% 0.6% 0.1% 0.3% 0.2% Total loans 1.9% 1.4% 1.1% 0.7% 1.0% Institutions in Group Total Assets of Depository Institutions in Group Bank Holding Companies 16 $11,091,617 % of Total Assets of All Depository Institutions 77.6% 1. Increases are largely due to accounting changes implemented in the first quarter of 2010 (the implementation of FAS 166 and 167). Data are merger adjusted to reflect Wells Fargo & Company's acquisition of Wachovia Corporation and PNC Financial Services Group's acquisition of National City Corporation in fourth quarter 2008. Source: Federa l Res erve Y‐9C Da ta 21 II. CPP Bank Holding Companies with Assets Between $10 Billion and $100 Billion Q2 2010 Selected balance and off‐balance sheet items $ millions ($Aggregate) Median % Change $ millions (median) Q3 2008 From Previous Quarter From Previous Year Assets $934,901 $17,188 1.3% ‐0.9% 0.0% Loa ns $605,589 $11,452 ‐5.5% ‐0.6% ‐3.8% Construction & development $46,818 $941 ‐28.3% ‐8.9% ‐23.1% Closed‐end 1‐4 family residential $86,958 $1,880 ‐3.4% ‐0.5% ‐4.1% Home equity $43,595 $632 12.1% 0.9% 1.7% Credit card $46,972 $1 ‐2.4% 0.9% 0.4% Other consumer $48,831 $498 ‐8.8% ‐0.1% ‐5.0% Commercial & Industrial $136,042 $2,562 ‐14.7% ‐1.2% ‐12.3% Commercial real estate $129,130 $2,855 13.7% 0.0% 2.7% Unus ed commitments $50,724 $959 ‐75.5% ‐3.8% ‐71.9% Securi tiza tion outs ta nding principa l $27,427 $0 ‐37.8% ‐3.0% ‐84.9% Mortga ge‐ba cked s ecuri ti es (GSE a nd pri va te i s s ue) $97,763 $1,896 22.0% 0.8% 11.4% $3,956 $0 ‐62.7% ‐0.5% ‐5.6% $199,537 $4,258 16.6% 1.3% 11.4% $86,328 $920 161.3% ‐12.0% 40.9% $5,326 $50 78.2% 12.3% ‐51.4% $9 $0 ‐56.0% 45.5% ‐26.0% $7,557 $74 69.1% 8.7% ‐48.6% $8 $0 ‐60.8% 87.9% ‐18.4% As s et‐ba cked s ecurities Other s ecurities Ca s h & ba l a nces due Res identi a l mortga ge originations Closed‐end mortgage originated for sale (quarter) Open‐end HELOC originated for sale (quarter) Closed‐end mortgage originations sold (quarter) Open‐end HELOC originations sold (quarter) Liabilities $831,206 $15,131 ‐1.3% ‐1.4% Depos its $638,255 $11,863 8.9% ‐1.2% 1.6% Tota l other borrowi ngs $113,820 $998 ‐41.3% ‐0.5% ‐17.1% $102,601 $1,774 32.2% 1.3% 11.5% ‐1.0% Equity Equity ca pita l a t qua rter end Performance Ratios Median Levels Q2 2010 Ra tios Weighted Average Q3 2008 Median Median Previous Quarter Median Previous Year Median Ti er 1 levera ge ra tio 10.4% 10.3% 8.1% 10.1% 9.5% Ti er 1 ris k ba s ed ca pita l ra ti o 13.2% 12.9% 9.2% 12.8% 11.8% Tota l ris k ba s ed ca pita l ra tio 16.0% 15.5% 11.9% 15.1% 13.9% ‐0.6% 1.3% 5.4% 0.3% ‐2.2% ‐0.1% 0.2% 0.6% 0.0% ‐0.2% 2.1% 2.0% 2.9% 1.0% 1.9% 68.9% 74.9% 81.1% 66.9% 65.1% 101.4% 107.4% 171.0% 108.6% 151.9% 2.0% 1.4% 0.7% 0.6% 1.2% 2 Return on equity Return on a s s ets 2 Net i nteres t ma rgin 2 Covera ge ra tio {(ALLL+Al loc tra ns fer ris k)/Noncurrent loa ns )} Los s provis ion to net cha rge‐offs (qtr) Net cha rge‐offs to a vera ge l oa ns a nd leases 2 2. Quarterly, annualized. Asset Quality Noncurrent Loa ns (% of Tota l Loa n Type) Q2 2010 Weighted Average Construction & development Q3 2008 Previous Quarter Median Median Median Previous Year Median 18.2% 15.2% 6.2% 14.4% 11.6% Closed‐end 1‐4 family residential 5.7% 4.0% 1.5% 4.1% 2.9% Home equity 1.1% 0.9% 0.7% 1.1% 1.0% Credit card 3.0% 1.1% 0.6% 0.6% 1.1% Other consumer 2.0% 0.6% 0.4% 0.8% 0.7% Commercial & Industrial 3.4% 2.4% 0.7% 2.4% 2.2% Commercial real estate 5.1% 4.7% 0.9% 4.4% 2.1% Total loans 5.0% 4.6% 1.9% 4.6% Cha rge‐Offs (% of Tota l Loa n Type) Q3 2008 Q2 2010 Weighted Average Median Previous Quarter Median 3.8% Previous Year Median Median Construction & development 4.8% 3.3% 1.3% 1.4% 2.8% Closed‐end 1‐4 family residential 1.1% 0.5% 0.3% 0.3% 0.3% Home equity 0.8% 0.5% 0.3% 0.3% 0.4% Credit card 4.8% 2.8% 3.3% 1.8% 3.2% Other consumer 1.0% 0.9% 0.9% 0.4% 1.1% Commercial & Industrial 1.1% 0.9% 0.5% 0.4% 1.1% Commercial real estate 1.0% 0.8% 0.1% 0.3% 0.3% Total loans 1.6% 1.1% 0.6% 0.5% Institutions in Group Total Assets of Depository Institutions in Group Bank Holding Companies 34 Source: Federa l Res erve Y‐9C Da ta $934,901 1.0% % of Total Assets of All Depository Institutions 6.5% 22 III. CPP Bank Holding Companies with Assets Between $1 Billion and $10 Billion Q2 2010 Selected balance and off‐balance sheet items $ millions ($Aggregate) Median % Change $ millions (median) Q3 2008 From Previous Quarter From Previous Year Assets $416,500 $1,963 6.8% ‐0.5% 0.6% Loa ns $284,462 $1,396 ‐1.4% ‐1.0% ‐3.7% Construction & development $33,912 $152 ‐30.6% ‐5.4% ‐22.0% Closed‐end 1‐4 family residential $51,489 $253 1.3% ‐0.7% ‐4.2% Home equity $16,635 $62 12.0% 0.2% 2.8% $259 $0 ‐7.7% 0.8% ‐1.4% Credit card Other consumer $11,124 $36 ‐19.8% ‐3.3% ‐12.1% Commercial & Industrial $44,609 $169 ‐7.0% ‐0.9% ‐5.3% Commercial real estate $100,838 $478 12.1% ‐0.1% 3.5% $21,081 $83 ‐68.6% ‐2.9% ‐64.4% $1,045 $0 ‐6.1% 0.0% ‐6.5% $39,811 $159 26.4% ‐1.4% ‐2.7% ‐60.9% Unus ed commitments Securi tiza tion outs ta nding principa l Mortga ge‐ba cked s ecuri ti es (GSE a nd pri va te i s s ue) As s et‐ba cked s ecurities $77 ‐87.4% ‐5.5% $439 33.5% 1.1% 10.4% $28,117 $96 115.2% 4.5% 36.9% $11,164 Ca s h & ba l a nces due $0 $104,474 Other s ecurities Res identi a l mortga ge originations Closed‐end mortgage originated for sale (quarter) Open‐end HELOC originations sold (quarter) 54.7% 27.4% ‐52.5% $0 ‐84.9% 47.9% ‐89.6% $18 43.1% 15.8% ‐49.0% $0 Closed‐end mortgage originations sold (quarter) $18 $2 $13,208 Open‐end HELOC originated for sale (quarter) $0 0.0% 0.0% 0.0% 0.3% Liabilities $377,210 $1,767 5.6% ‐0.6% Depos its $329,768 $1,564 12.9% ‐0.1% 3.0% $20,755 $92 ‐42.1% ‐0.9% ‐22.3% $39,075 $161 27.8% 1.2% 2.5% Tota l other borrowi ngs Equity Equity ca pita l a t qua rter end Performance Ratios Median Levels Q2 2010 Ra tios Weighted Average Ti er 1 levera ge ra tio Q3 2008 Median Median Previous Quarter Median Previous Year Median 9.0% 9.3% 8.3% 9.3% 9.6% Ti er 1 ris k ba s ed ca pita l ra ti o 12.3% 12.4% 10.0% 12.2% 11.8% Tota l ris k ba s ed ca pita l ra tio 14.1% 14.1% 11.4% 14.1% 13.4% ‐2.1% 2.0% 6.5% 0.9% 1.0% ‐0.2% 0.2% 0.5% 0.1% 0.1% 2.2% 2.2% 3.2% 1.1% 2.1% 53.2% 61.2% 85.7% 60.6% 65.1% 109.1% 115.3% 160.2% 116.6% 149.1% 1.4% 0.9% 0.4% 0.4% 0.6% 2 Return on equity Return on a s s ets 2 Net i nteres t ma rgin 2 Covera ge ra tio {(ALLL+Al loc tra ns fer ris k)/Noncurrent loa ns )} Los s provis ion to net cha rge‐offs (qtr) Net cha rge‐offs to a vera ge l oa ns a nd leases 2 2. Quarterly, annualized. Asset Quality Noncurrent Loa ns (% of Tota l Loa n Type) Q2 2010 Weighted Average Construction & development Q3 2008 Previous Quarter Median Median Median Previous Year Median 16.1% 11.5% 3.4% 10.7% 8.3% Closed‐end 1‐4 family residential 3.8% 2.9% 1.2% 2.7% 2.3% Home equity 1.2% 0.7% 0.3% 0.7% 0.5% Credit card 1.0% 0.0% 0.0% 0.0% 0.0% Other consumer 0.6% 0.4% 0.3% 0.5% 0.4% Commercial & Industrial 2.7% 1.8% 1.0% 2.0% 1.9% Commercial real estate 3.9% 2.8% 0.7% 2.7% 1.7% Total loans 4.9% 3.7% 1.5% 3.7% Cha rge‐Offs (% of Tota l Loa n Type) Q2 2010 Weighted Average Q3 2008 Median Previous Quarter Median 2.6% Previous Year Median Median Construction & development 3.6% 2.1% 0.2% 0.6% 0.7% Closed‐end 1‐4 family residential 0.6% 0.4% 0.1% 0.2% 0.2% Home equity 0.5% 0.3% 0.1% 0.1% 0.2% Credit card 3.0% 1.5% 1.5% 0.9% 1.6% Other consumer 0.9% 0.8% 1.0% 0.4% 0.9% Commercial & Industrial 1.1% 0.8% 0.5% 0.3% 0.7% Commercial real estate 0.6% 0.3% 0.0% 0.1% 0.1% Total loans 1.1% 0.7% 0.3% 0.3% 0.5% Institutions in Group Total Assets of Depository Institutions in Group Bank Holding Companies 153 Source: Federa l Res erve Y‐9C Da ta $416,500 % of Total Assets of All Depository Institutions 2.9% 23 IV. CPP Bank Holding Companies with Assets Less Than $1 Billion Q2 2010 Selected balance and off‐balance sheet items $ millions ($Aggregate) Median % Change $ millions (median) Q3 2008 From Previous Quarter From Previous Year Assets $80,591 $688 7.2% ‐0.3% 2.5% Loa ns $57,350 $488 0.6% ‐0.7% ‐1.5% Construction & development $7,134 ‐6.8% ‐22.0% 1.5% 0.4% ‐0.6% $22 22.3% 1.0% 3.7% $44 Credit card ‐26.5% $89 $3,148 Home equity $52 $11,046 Closed‐end 1‐4 family residential $0 4.4% 2.3% 6.1% Other consumer $1,834 $8 ‐16.4% ‐2.1% ‐12.3% Commercial & Industrial $8,286 $60 ‐7.6% ‐1.6% ‐6.2% Commercial real estate $20,923 $174 10.7% ‐0.1% 4.5% $3,972 $30 ‐65.5% ‐3.0% ‐58.8% $16 $0 ‐22.5% ‐3.2% 35.4% $5,985 $37 11.9% ‐3.7% ‐9.5% $14 $0 ‐94.4% ‐7.9% ‐91.5% $19,263 $152 17.7% ‐0.2% 9.3% $4,935 $30 71.2% 5.7% 27.8% $1,956 Unus ed commitments Securi tiza tion outs ta nding principa l Mortga ge‐ba cked s ecuri ti es (GSE a nd pri va te i s s ue) As s et‐ba cked s ecurities Other s ecurities Ca s h & ba l a nces due Res identi a l mortga ge originations Closed‐end mortgage originated for sale (quarter) 52.7% 22.9% ‐53.4% $0 ‐100.0% 0.0% ‐100.0% $0 41.1% 12.8% ‐52.2% $0 Open‐end HELOC originations sold (quarter) $0 $0 $2,302 Open‐end HELOC originated for sale (quarter) Closed‐end mortgage originations sold (quarter) $0 ‐100.0% 0.0% 0.0% 2.3% Liabilities $73,340 $631 6.3% ‐0.4% Depos its $64,562 $545 11.8% 0.0% 5.2% $5,194 $35 ‐31.5% ‐0.5% ‐17.8% $7,188 $56 22.1% 0.8% 0.0% Tota l other borrowi ngs Equity Equity ca pita l a t qua rter end Performance Ratios Median Levels Q2 2010 Ra tios Weighted Average Ti er 1 levera ge ra tio Q3 2008 Median Median Previous Quarter Median Previous Year Median 9.5% 9.1% 8.4% 9.3% 9.7% Ti er 1 ris k ba s ed ca pita l ra ti o 12.6% 12.3% 10.3% 12.1% 12.1% Tota l ris k ba s ed ca pita l ra tio 14.3% 13.7% 11.6% 13.7% 13.6% ‐0.7% 1.9% 6.6% 1.3% 1.7% ‐0.1% 0.2% 0.5% 0.1% 0.1% 2.2% 2.2% 3.2% 1.1% 2.1% 54.8% 59.9% 84.9% 54.4% 59.3% 109.0% 122.5% 181.0% 119.0% 163.3% 1.0% 0.7% 0.2% 0.3% 0.4% 2 Return on equity Return on a s s ets 2 Net i nteres t ma rgin 2 Covera ge ra tio {(ALLL+Al loc tra ns fer ris k)/Noncurrent loa ns )} Los s provis ion to net cha rge‐offs (qtr) Net cha rge‐offs to a vera ge l oa ns a nd leases 2 2. Quarterly, annualized. Asset Quality Noncurrent Loa ns (% of Tota l Loa n Type) Q2 2010 Weighted Average Q3 2008 Previous Quarter Median Median Median Previous Year Median Construction & development 9.9% 9.3% 3.2% 8.0% 6.3% Closed‐end 1‐4 family residential 3.4% 2.9% 1.2% 2.3% 2.0% Home equity 0.9% 0.5% 0.1% 0.3% 0.1% Credit card 0.9% 0.4% 0.7% 0.4% 0.1% Other consumer 0.6% 0.3% 0.3% 0.4% 0.3% Commercial & Industrial 2.8% 1.9% 0.6% 1.9% 1.2% Commercial real estate 3.3% 2.5% 0.5% 2.4% 1.3% Total loans 3.8% 3.4% 1.6% 3.7% Cha rge‐Offs (% of Tota l Loa n Type) Q2 2010 Weighted Average Q3 2008 Median Previous Quarter Median 2.7% Previous Year Median Median Construction & development 2.1% 1.0% 0.1% 0.2% 0.3% Closed‐end 1‐4 family residential 0.5% 0.3% 0.1% 0.1% 0.2% Home equity 0.4% 0.1% 0.0% 0.0% 0.0% Credit card 2.3% 1.3% 1.8% 0.6% 0.9% Other consumer 0.8% 0.5% 0.6% 0.2% 0.5% Commercial & Industrial 1.0% 0.6% 0.3% 0.2% 0.3% Commercial real estate 0.4% 0.1% 0.0% 0.0% 0.0% Total loans 0.8% 0.6% 0.2% 0.2% 0.3% Institutions in Group Total Assets of Depository Institutions in Group Bank Holding Companies 116 Source: Federa l Res erve Y‐9C Da ta $80,591 % of Total Assets of All Depository Institutions 0.6% 24 V. Non‐CPP Bank Holding Companies with Assets Between $10 Billion and $100 Billion Q2 2010 Selected balance and off‐balance sheet items $ millions ($Aggregate) Median % Change $ millions (median) Q3 2008 From Previous Quarter From Previous Year Assets $370,974 $17,127 12.5% 0.6% 5.5% Loa ns $228,650 $10,041 0.4% ‐0.6% ‐0.4% Construction & development $15,727 $896 ‐23.7% ‐6.1% ‐19.2% Closed‐end 1‐4 family residential $40,838 $1,887 14.4% 0.0% ‐4.0% Home equity $15,802 $461 22.2% 0.8% 5.5% $5,453 $74 8.0% 1.9% 9.4% $21,612 $342 ‐28.5% ‐5.4% ‐11.8% Credit card Other consumer Commercial & Industrial $37,885 $1,827 ‐9.0% ‐1.0% ‐5.7% Commercial real estate $52,015 $2,273 14.3% 0.5% 4.5% Unus ed commitments $21,921 $723 ‐77.2% ‐0.2% ‐75.3% Securi tiza tion outs ta nding principa l $11,113 $0 ‐56.4% ‐3.4% ‐65.5% Mortga ge‐ba cked s ecuri ti es (GSE a nd pri va te i s s ue) $47,072 $2,417 15.0% 2.9% 2.8% $2,589 $0 ‐90.4% ‐12.5% ‐49.6% $106,810 $7,077 27.8% 3.8% 2.0% $21,197 $1,164 36.5% 1.9% 69.3% $5,296 $143 38.1% 30.1% ‐51.1% $0 $0 0.0% 0.0% 0.0% $7,008 $202 23.7% 10.9% ‐50.6% $0 $0 0.0% 0.0% 0.0% As s et‐ba cked s ecurities Other s ecurities Ca s h & ba l a nces due Res identi a l mortga ge originations Closed‐end mortgage originated for sale (quarter) Open‐end HELOC originated for sale (quarter) Closed‐end mortgage originations sold (quarter) Open‐end HELOC originations sold (quarter) Liabilities $324,999 $15,087 Depos its $252,731 $13,874 17.3% ‐0.2% 6.4% $35,298 $951 ‐31.6% ‐9.2% ‐19.8% $45,845 $1,987 24.2% 2.1% 11.5% Tota l other borrowi ngs 16.1% 0.3% 5.0% Equity Equity ca pita l a t qua rter end Performance Ratios Median Levels Q2 2010 Ra tios Weighted Average Ti er 1 levera ge ra tio Q3 2008 Median Median Previous Quarter Median Previous Year Median 8.8% 8.6% 8.2% 8.4% 8.0% Ti er 1 ris k ba s ed ca pita l ra ti o 11.8% 13.2% 10.7% 13.1% 11.2% Tota l ris k ba s ed ca pita l ra tio 13.9% 15.4% 12.4% 14.9% 13.0% 6.8% 6.6% 11.1% 3.3% 5.5% 0.8% 0.8% 1.0% 0.4% 0.6% 2 Return on equity Return on a s s ets 2 Net i nteres t ma rgin 2 2.1% 2.1% 3.4% 1.1% 2.1% Covera ge ra tio {(ALLL+Al loc tra ns fer ris k)/Noncurrent loa ns )} 68.9% 76.4% 207.4% 84.3% 104.1% Los s provis ion to net cha rge‐offs (qtr) 98.7% 110.6% 158.5% 118.5% 132.4% 0.7% 0.7% 0.3% 0.4% 0.5% Net cha rge‐offs to a vera ge l oa ns a nd leases 2 2. Quarterly, annualized. Asset Quality Noncurrent Loa ns (% of Tota l Loa n Type) Q2 2010 Weighted Average Construction & development Q3 2008 Previous Quarter Median Median Median Previous Year Median 12.0% 10.8% 2.6% 8.8% 5.9% Closed‐end 1‐4 family residential 3.2% 2.0% 0.9% 1.9% 1.0% Home equity 0.5% 0.4% 0.1% 0.5% 0.5% Credit card 2.4% 1.1% 1.4% 1.5% 1.5% Other consumer 0.5% 0.5% 0.3% 0.5% 0.5% Commercial & Industrial 1.9% 1.6% 0.5% 1.3% 1.3% Commercial real estate 2.5% 2.0% 0.5% 1.9% 0.9% Total loans 2.9% 2.5% 0.6% 2.6% Cha rge‐Offs (% of Tota l Loa n Type) Q3 2008 Q2 2010 Weighted Average Median Previous Quarter Median 1.5% Previous Year Median Median Construction & development 1.7% 1.1% 0.2% 0.4% 0.5% Closed‐end 1‐4 family residential 0.4% 0.1% 0.2% 0.1% 0.2% Home equity 0.3% 0.2% 0.1% 0.1% 0.2% Credit card 5.1% 2.7% 3.1% 1.5% 3.5% Other consumer 1.0% 1.0% 1.0% 0.5% 1.0% Commercial & Industrial 0.5% 0.4% 0.3% 0.2% 0.4% Commercial real estate 0.2% 0.2% 0.0% 0.0% 0.0% Total loans 0.6% 0.6% 0.3% 0.3% Institutions in Group Total Assets of Depository Institutions in Group Bank Holding Companies 15 Source: Federa l Res erve Y‐9C Da ta $370,974 0.4% % of Total Assets of All Depository Institutions 2.6% 25 VI. Non‐CPP Bank Holding Companies with Assets Between $1 Billion and $10 Billion Q2 2010 Selected balance and off‐balance sheet items $ millions ($Aggregate) Median % Change $ millions (median) Q3 2008 From Previous Quarter From Previous Year Assets $536,357 $1,605 7.3% 0.2% 3.2% Loa ns $338,515 $1,080 ‐0.2% ‐0.2% ‐2.1% Construction & development $34,368 $102 ‐26.8% ‐6.3% ‐20.3% Closed‐end 1‐4 family residential $77,739 $187 0.7% 0.7% ‐1.8% Home equity $15,833 $39 14.3% 0.7% 4.4% $1,435 $0 0.7% 1.9% 4.3% Credit card Other consumer $19,089 $27 ‐14.6% ‐1.9% ‐9.3% Commercial & Industrial $49,178 $149 ‐8.7% ‐0.9% ‐5.5% Commercial real estate $104,374 $334 12.6% 0.3% 5.0% $24,183 $62 ‐71.9% ‐3.1% ‐68.1% $9,245 $0 ‐33.2% ‐2.6% ‐14.0% $65,602 $132 4.2% ‐2.6% ‐1.6% $466 $0 ‐100.0% ‐2.6% ‐24.1% $171,003 $472 19.9% 2.6% 13.0% $39,168 $99 115.6% ‐0.5% 25.2% $9,427 ‐55.3% Unus ed commitments Securi tiza tion outs ta nding principa l Mortga ge‐ba cked s ecuri ti es (GSE a nd pri va te i s s ue) As s et‐ba cked s ecurities Other s ecurities Ca s h & ba l a nces due Res identi a l mortga ge originations Closed‐end mortgage originated for sale (quarter) 56.4% 27.7% $0 57.4% 46.2% 20.9% $12 41.7% 15.4% ‐56.8% $0 Open‐end HELOC originations sold (quarter) $10 $18 $11,435 Open‐end HELOC originated for sale (quarter) Closed‐end mortgage originations sold (quarter) $0 ‐93.6% 0.0% ‐98.6% Liabilities $485,109 $1,475 7.5% 0.1% 2.9% Depos its $414,699 $1,304 14.4% 0.4% 4.9% $33,168 $83 ‐29.0% ‐1.4% ‐16.3% $49,720 $141 12.5% 2.0% 8.6% Tota l other borrowi ngs Equity Equity ca pita l a t qua rter end Performance Ratios Median Levels Q2 2010 Ra tios Weighted Average Ti er 1 levera ge ra tio Q3 2008 Median Median Previous Quarter Median Previous Year Median 8.9% 8.7% 8.7% 8.6% 8.4% Ti er 1 ris k ba s ed ca pita l ra ti o 12.9% 12.2% 11.1% 11.9% 11.0% Tota l ris k ba s ed ca pita l ra tio 14.5% 13.7% 12.4% 13.7% 12.5% 3.2% 4.4% 8.8% 2.2% 4.5% 0.3% 0.4% 0.8% 0.2% 0.4% 2.2% 2.2% 3.4% 1.1% 2.2% 55.8% 70.3% 118.9% 68.3% 76.4% 115.2% 130.6% 159.3% 141.3% 155.1% 0.8% 0.4% 0.2% 0.2% 0.3% 2 Return on equity Return on a s s ets 2 Net i nteres t ma rgin 2 Covera ge ra tio {(ALLL+Al loc tra ns fer ris k)/Noncurrent loa ns )} Los s provis ion to net cha rge‐offs (qtr) Net cha rge‐offs to a vera ge l oa ns a nd leases 2 2. Quarterly, annualized. Asset Quality Noncurrent Loa ns (% of Tota l Loa n Type) Q2 2010 Weighted Average Construction & development Q3 2008 Previous Quarter Median Median Median Previous Year Median 12.9% 7.2% 2.0% 7.6% 5.3% Closed‐end 1‐4 family residential 3.2% 1.7% 0.8% 1.6% 1.3% Home equity 1.3% 0.5% 0.2% 0.5% 0.3% Credit card 1.2% 0.3% 0.1% 0.1% 0.5% Other consumer 0.7% 0.3% 0.2% 0.3% 0.2% Commercial & Industrial 2.4% 1.5% 0.6% 1.3% 1.1% Commercial real estate 3.1% 1.8% 0.7% 2.0% 1.2% Total loans 3.7% 2.2% 1.0% 2.4% Cha rge‐Offs (% of Tota l Loa n Type) Q2 2010 Weighted Average Q3 2008 Median Previous Quarter Median 1.7% Previous Year Median Median Construction & development 2.3% 0.5% 0.1% 0.1% 0.3% Closed‐end 1‐4 family residential 0.3% 0.2% 0.1% 0.1% 0.1% Home equity 0.4% 0.1% 0.0% 0.0% 0.0% Credit card 9.6% 1.5% 1.8% 0.7% 1.6% Other consumer 0.7% 0.4% 0.5% 0.2% 0.5% Commercial & Industrial 0.8% 0.4% 0.2% 0.1% 0.3% Commercial real estate 0.4% 0.1% 0.0% 0.0% 0.0% Total loans 0.7% 0.3% 0.2% 0.1% 0.3% Institutions in Group Total Assets of Depository Institutions in Group Bank Holding Companies 232 Source: Federa l Res erve Y‐9C Da ta $536,357 % of Total Assets of All Depository Institutions 3.8% 26 VII. Non‐CPP Bank Holding Companies with Assets Less Than $1 Billion Q2 2010 Selected balance and off‐balance sheet items $ millions ($Aggregate) Median % Change $ millions (median) Q3 2008 From Previous Quarter From Previous Year Assets $281,744 $629 4.7% 0.0% 1.5% Loa ns $188,438 $417 ‐1.5% ‐0.7% ‐3.3% Construction & development $20,390 $36 ‐28.9% ‐4.6% ‐21.2% Closed‐end 1‐4 family residential $42,173 $80 0.8% ‐0.1% ‐2.5% $8,289 $15 10.9% 0.2% 2.5% $365 $0 ‐0.4% 1.1% 3.5% Home equity Credit card Other consumer $7,478 $9 ‐17.7% ‐1.8% ‐10.3% Commercial & Industrial $23,958 $47 ‐9.0% ‐1.2% ‐7.8% Commercial real estate $62,193 $137 8.3% ‐0.2% 2.9% $11,205 $21 ‐71.1% ‐2.1% ‐66.7% $573 $0 ‐3.4% ‐1.4% ‐13.8% $21,721 $33 ‐12.2% ‐4.2% ‐12.4% $90 $0 ‐88.9% ‐5.0% ‐45.1% Other s ecurities $87,112 $169 11.0% 0.7% 7.9% Ca s h & ba l a nces due $19,073 $33 95.5% 3.0% 30.9% $4,079 $0 39.7% 28.3% ‐59.8% $17 $0 ‐69.7% ‐3.6% ‐71.2% $4,721 $0 24.7% 21.9% ‐58.0% $11 $0 6.9% ‐17.6% 935.4% 4.4% ‐0.3% Unus ed commitments Securi tiza tion outs ta nding principa l Mortga ge‐ba cked s ecuri ti es (GSE a nd pri va te i s s ue) As s et‐ba cked s ecurities Res identi a l mortga ge originations Closed‐end mortgage originated for sale (quarter) Open‐end HELOC originated for sale (quarter) Closed‐end mortgage originations sold (quarter) Open‐end HELOC originations sold (quarter) Liabilities $257,974 $573 Depos its $229,529 $516 7.7% 0.1% 2.8% $16,437 $29 ‐24.4% ‐0.4% ‐14.8% $23,521 $52 6.1% 1.7% 5.4% Tota l other borrowi ngs 1.3% Equity Equity ca pita l a t qua rter end Performance Ratios Median Levels Q2 2010 Ra tios Weighted Average Ti er 1 levera ge ra tio Q3 2008 Median Median Previous Quarter Median Previous Year Median 8.5% 8.6% 8.9% 8.5% 8.4% Ti er 1 ris k ba s ed ca pita l ra ti o 11.8% 11.8% 11.3% 11.5% 11.0% Tota l ris k ba s ed ca pita l ra tio 13.4% 13.3% 12.6% 12.9% 12.5% 1.8% 4.1% 7.8% 2.1% 3.3% 0.1% 0.3% 0.7% 0.2% 0.3% 2.3% 2.3% 3.4% 1.1% 2.2% 47.4% 64.0% 86.1% 66.2% 64.0% 106.4% 125.1% 145.0% 130.6% 142.6% 0.7% 0.4% 0.2% 0.1% 0.3% 2 Return on equity Return on a s s ets 2 Net i nteres t ma rgin 2 Covera ge ra tio {(ALLL+Al loc tra ns fer ris k)/Noncurrent loa ns )} Los s provis ion to net cha rge‐offs (qtr) Net cha rge‐offs to a vera ge l oa ns a nd leases 2 2. Quarterly, annualized. Asset Quality Noncurrent Loa ns (% of Tota l Loa n Type) Q2 2010 Weighted Average Construction & development Q3 2008 Previous Quarter Median Median Median Previous Year Median 14.6% 7.1% 1.9% 6.2% 6.4% Closed‐end 1‐4 family residential 3.0% 1.8% 0.9% 1.8% 1.5% Home equity 1.2% 0.2% 0.0% 0.3% 0.2% Credit card 1.1% 0.2% 0.2% 0.0% 0.3% Other consumer 0.8% 0.3% 0.3% 0.3% 0.3% Commercial & Industrial 2.4% 1.3% 0.7% 1.4% 1.2% Commercial real estate 3.5% 2.2% 0.8% 2.0% 1.5% Total loans 4.1% 2.7% 1.3% 2.6% Cha rge‐Offs (% of Tota l Loa n Type) Q3 2008 Q2 2010 Weighted Average Median Previous Quarter Median 2.4% Previous Year Median Median Construction & development 1.8% 0.3% 0.1% 0.0% 0.2% Closed‐end 1‐4 family residential 0.4% 0.1% 0.1% 0.0% 0.1% Home equity 0.3% 0.0% 0.0% 0.0% 0.0% Credit card 7.1% 1.3% 1.4% 0.4% 1.1% Other consumer 0.7% 0.4% 0.6% 0.2% 0.4% Commercial & Industrial 0.8% 0.4% 0.2% 0.1% 0.3% Commercial real estate 0.3% 0.1% 0.0% 0.0% 0.0% Total loans 0.6% 0.3% 0.2% 0.1% Institutions in Group Total Assets of Depository Institutions in Group Bank Holding Companies 439 Source: Federa l Res erve Y‐9C Da ta $281,744 0.3% % of Total Assets of All Depository Institutions 2.0% 27 Appendix B: Notes to Y-9C Data Users • Data are from the Consolidated Financial Statements for Bank Holding Companies Y-9C Report Form. Only top tier holding companies with $500 million or more in consolidated assets are required to file Y-9C Reports. 18 • Ally Financial Inc. (previously GMAC) is excluded from all groups as GMAC received TARP funds under the Automotive Industry Financing Program. • Generally, data are not adjusted to reflect subsequent mergers between bank holding companies, which can contribute to shifts in reporting populations after the date of the merger. The data are only adjusted to reflect the acquisition of Wachovia Corporation (acquired by Wells Fargo & Company) and National City Corporation (acquired by PNC Financial Services Group) in fourth quarter 2008. • Unused commitments include home equity lines, credit card lines, securities underwriting, other unused commitments, and unused commitments (unsecured and secured by real estate) to fund commercial real estate, construction, and land development. • Securitization outstanding principal includes the principal balance of assets sold and securitized with servicing retained or with recourse or other seller-provided credit enhancements. • Residential Mortgage Origination data comes from schedule HC-P of the Y-9C, which is completed only by bank holding companies with $1,000,000,000 or more in total assets; and by bank holding companies with less than $1,000,000,000 in total assets with 1-4 family mortgage originations and purchases for resale exceeding $10,000,000 two quarters in a row. • Stock sales and related transactions equals the sale of perpetual preferred and common stock net of conversion or retirement of like stock plus sale of treasury stock net of purchase adjusted to provide quarterly figures. • Weighted average performance ratios and median performance ratios were calculated for each group. • The ratios ROE, ROA, net interest margin, net charge-offs to average loans are annualized. 18 In some cases, “BHCs meeting certain criteria may be required to file this report, regardless of size. However, when such BHCs own or control, or are owned or controlled by, other BHCs, only top-tier holding companies must file this report for the consolidated holding company organization.” See The Federal Reserve Board’s “Reporting Forms” page for more detailed information (http://federalreserve.gov/reportforms/default.cfm). 28 • Coverage ratio equals the allowance for loan and lease losses as a percentage of nonaccrual loans or loans past due 90 or more days and still accruing. • Gross charge-off rates use average of period end assets for denominator and are adjusted to provide quarterly figures. Source: Treasury Analysis of Y-9C Data 29