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Quarterly Banking Profile First Quarter 2007
I
I
I
I
I

Industry Reports Year-Over-Year Earnings Decline
Rising Loan Loss Provisions Reduce Profits at Larger Institutions
Net Interest Margins Decline at Small Institutions, Rise at Large Banks
Loan Growth Slows for Fourth Consecutive Quarter
Mortgage Assets Decline for Second Quarter in a Row

Profits Are Lower at Many Institutions

higher provisions for loan losses. Among institutions with
more than $10 billion in assets, 73 percent raised their loss
provisions. The average ROA for the quarter was 1.21 percent, down from 1.34 percent in the first quarter of 2006,
as 59 percent of all institutions saw their quarterly ROAs
decline. This is the lowest first-quarter ROA for the industry since 2001.

Higher credit expenses at large institutions and narrower
net interest margins at smaller institutions exerted downward pressure on earnings of FDIC-insured institutions in
the first quarter of 2007. The industry reported total net
income of $36.0 billion in the quarter, the fourth-highest
quarterly amount ever, but it was $912 million (2.5 percent) less than the earnings posted in the first quarter of
2006. This is the largest year-over-year decline in quarterly
earnings since the first quarter of 2001. A significant part
of the decrease was attributable to a change in the way that
earnings were reported in the aftermath of a large corporate
restructuring, but lower operating results at a number of
institutions also contributed to the earnings drop. Evidence
of pressure on earnings was widespread, as a majority of
institutions (50.3 percent) reported lower quarterly net
income. Narrower net interest margins had a negative
effect on earnings of smaller banks and thrifts, while higher
expenses for bad loans were more significant for large
banks. More than two out of every three institutions —
67.9 percent — reported lower net interest margins than a
year ago, but only 36.6 percent of all institutions reported

Increased Costs Contribute to Earnings Decline
Reflecting an erosion in asset quality, provisions for loan
losses totaled $9.2 billion in the first quarter, an increase of
$3.2 billion (54.6 percent) from a year earlier. Noninterest
expenses were up by $3.0 billion (3.6 percent), as several
large banks reported higher payroll expenses. These higher
costs were partially offset by increased net interest income
(up $3.3 billion, or 4.0 percent), higher noninterest
income (up $1.2 billion, or 1.9 percent), and gains on sales
of securities and other assets (up $852 million, or 127.0
percent). Lower revenues from securitization and servicing
activities limited the year-over-year improvement in noninterest income.
Chart 2

Chart 1

The Increase in Loss Provisions Was the
Largest in Five Years

First Quarter Earnings Were Fourth-Highest Ever
$ Billions

1st Quarter 2006 to 1st Quarter 2007 ($ Billions)

Securities and Other Gains/Losses, Net
Net Operating Income

40.0

30.2 30.4
30.0 29.5

32.5
31.1 31.8 31.2
31.1

36.9

34.0 34.3 34.7

38.0 38.1

Positive
Factors

4.0

35.4 36.0

32.7

Negative
Factors

3.3

3.2

3.0

20.0

2.0

10.0

1.0

3.0

1.2

0.0

0

1

2

3

2003

FDIC QUARTERLY

4

1

2

3

2004

4

1

2

3

2005

4

1

2

3

2006

4

1

2007

1

0.9

Increase in
Net Interest
Income

Increase in
Noninterest
Income

Increase in
Gains on
Securities Sales

Increase in
Loan Loss
Provision

Increase in
Noninterest
Expense

2007, VOLUME 1, NO. 1

Margins Fall to Sixteen-Year Low at Smaller
Institutions

Rising Loss Provisions Stay Ahead of Increase
in Loan Losses

A combination of stable interest rates and a flat yield curve
had different effects on margins at small and large institutions
in the first quarter. The industry’s net interest margin (NIM)
was 3.32 percent in the first quarter, above the 3.20 percent
average in the fourth quarter of 2006, but below the 3.46 percent average in the first quarter of 2006. The first consecutive-quarter margin improvement in the last seven quarters
was concentrated among larger institutions. At institutions
with more than $10 billion in assets, average asset yields
increased and average funding costs declined from fourthquarter levels, lifting net interest margins. At institutions
with assets between $1 billion and $10 billion, average asset
yields increased, but so did average funding costs. Nevertheless, the improvement in yields outweighed the rise in funding costs, and this group saw its average margin increase as
well. At institutions with less than $1 billion in assets, however, average asset yields were lower than in the fourth quarter, while average funding costs were higher, so average
margins were down. The 3.91 percent average margin for
institutions with less than $1 billion in assets was the lowest
level for this group in 16 years. Compared to a year ago,
average margins were lower for all size groups. Because of the
narrower margins, net interest income in the first quarter was
up by only 4.0 percent from a year earlier, even though interest-earning assets grew by 7.3 percent. At many institutions,
narrower margins contributed to lower profitability. Among
institutions that reported year-over-year declines in quarterly
ROA, 84 percent also reported declines in net interest margins. At institutions reporting year-over-year declines in
quarterly NIMs, 72 percent also had lower ROAs.

The $9.2 billion that the industry set aside in provisions for
loan losses during the first quarter was slightly below the $9.8
billion set aside in the fourth quarter of 2006, but the $3.2billion year-over-year increase was the largest since the first
quarter of 2002. Loss provisions exceeded net charge-offs by
$1.1 billion (13.1 percent), the fifth quarter in a row that
provisions have exceeded loan losses. Net charge-offs totaled
$8.1 billion, an increase of $2.7 billion (48.4 percent) from
the first quarter of 2006. Charge-offs were higher in most
loan categories. Net charge-offs of credit card loans rebounded from an unusually low level a year ago, increasing by $850
million (29.2 percent). Similarly, net charge-offs of other
loans to individuals were $754 million (60.0 percent) higher
than a year earlier. Net charge-offs of loans to commercial
and industrial (C&I) borrowers increased by $470 million
(78.6 percent), and net charge-offs of 1-4 family residential
mortgage loans were up by $268 million (93.2 percent).

Chart 3

Chart 4

Noncurrent Rate Climbs for Third
Consecutive Quarter
Since reaching a cyclical low of 0.70 percent at the middle of
last year, the percent of insured institutions’ loans that are
noncurrent (90 days or more past due or in nonaccrual status)
has risen in each succeeding quarter. At the end of March,
the noncurrent rate stood at 0.83 percent, its highest level in
two and a half years. During the quarter, noncurrent loans
increased by $4.0 billion (7.0 percent). Noncurrent levels
increased in most loan categories during the first quarter, with

More Institutions Are Having Trouble Growing
Their Earnings

Margins Improved at Large Institutions
Net Interest Margin (%)

Percent of Institutions with
Quarterly Earnings Gains

4.50

Assets < $100 Million

70

4.07

4.00

60

3.50

50

3.31

Assets > $100 Million

48.4%
3.00

40

1

03/05

06/05

FDIC QUARTERLY

09/05 12/05

03/06 06/06

09/06 12/06

2

3

2003

03/07

2

4

1

2

3

2004

4

1

2

3

2005

4

1

2

3

2006

4

1

2007

2007, VOLUME 1, NO. 1

Quarterly Banking Profile

Dividend Surge Limits Growth in Equity

the largest increases occurring in real estate loans. Noncurrent residential mortgage loans increased by $1.7 billion (7.3
percent), while noncurrent construction and development
loans rose by $1.5 billion (36.1 percent). The rising trend in
noncurrent loans was fairly widespread; almost half of all
institutions (45.7 percent) saw their noncurrent loans
increase in the first quarter. The percentage of 1-4 family residential mortgage loans that were noncurrent rose from 1.05
percent to 1.13 percent during the quarter. This is the highest noncurrent rate for residential mortgage loans since
midyear 1994.

Insured institutions paid $26.2 billion in dividends in the
quarter, an increase of $7.3 billion (38.7 percent) from the
first quarter of 2006, as a few large institutions reported sizable dividend increases. Retained earnings totaled only $9.8
billion for the quarter, $8.2 billion (45.5 percent) less than a
year earlier. Partly as a result of the lower retained earnings,
total equity capital increased by only $19.7 billion, less than
half the $44.5-billion increase in equity capital that the
industry registered a year ago. This increase (the smallest in
the last six quarters) was enough to raise the industry’s equity-to-assets ratio from 10.52 percent to 10.58 percent. Average equity ratios increased for all size groups of insured
institutions during the quarter. The industry’s regulatory capital ratios remained largely unchanged, as levels rose slightly
at smaller institutions and declined slightly at larger institutions. The divergence between the improvement in the equity capital ratio and the lack of improvement in regulatory
capital ratios is due to an increase in the riskiness of industry
assets that is reflected in some regulatory capital ratios, as
well as the fact that one-fourth of the increase in equity consisted of goodwill, which is not included in regulatory capital.

Reserve Ratio Registers First Increase in Five Years
Insured institutions set aside $1.1 billion more in loss provisions than they charged off during the quarter, contributing
to a $993-million (1.3-percent) increase in loan-loss reserves.
This is the largest increase in loss reserves since the fourth
quarter of 2002. The increase in reserves caused the industry’s ratio of reserves to total loans to move up slightly from
1.07 percent to 1.08 percent during the quarter. This is the
first increase in the industry’s reserve ratio since the first
quarter of 2002; the current level is the second-lowest the
ratio has been since 1985. The increase in reserves failed to
keep pace with growth in noncurrent loans, and the industry’s “coverage ratio” of loss reserves to noncurrent loans fell
from $1.37 in reserves for every $1.00 in noncurrent loans to
$1.30 during the quarter. This is the fourth consecutive quarter that the coverage ratio has fallen. It is now at its lowest
level since March 2003.

Slower Asset Growth Is Centered in Real Estate
A slower growth environment prevailed in the first quarter,
as total assets increased by $120.8 billion (1.0 percent), higher than the $106.7-billion increase in the fourth quarter of
2006, but still the second-smallest increase in industry assets
in the last fourteen quarters. During the twelve months
ended March 31, assets of insured institutions grew by 6.9-

Chart 5

Chart 6

The “Efficiency Gap” Between Large and
Small Institutions Is Growing

The Industry Is Taking On More Risk
Return on RWA (%, Annualized)

Efficiency Ratio (%)

RWA to Assets (%)

3.0

Assets < $1 Billion

65

66.7

85
80

Risk-Weighted Assets to Assets

2.5

75.1

2.0

75
70

60

1.5

1.6
Return on Risk-Weighted Assets

Assets > $1 Billion

1.0

55

2000
1

2

3

2004

FDIC QUARTERLY

4

1

2

3

2005

4

60

56.3

55

1

2

2006

3

4

65

2001

2002

2003

2004

2005

2006 2007

Note: RWA = Assets weighted according to risk categories used in regulatory capital
computations.

1

2007

3

2007, VOLUME 1, NO. 1

percent, the slowest 12-month growth rate in four and a half
years. The slowdown in asset growth has been led by slower
loan growth. Total loans and leases increased by $43.8 billion (0.6 percent) during the quarter, the smallest quarterly
increase since the first quarter of 2002. Some categories of
real estate loans experienced shrinkage during the quarter,
while growth in other categories slowed. Institutions’ residential mortgage loans declined for the first time in thirteen
quarters, falling by $6.5 billion (0.3 percent), home equity
lines dropped by $2.6 billion (0.5 percent), and real estate
loans secured by multifamily residential properties declined
by $1.1 billion (0.6 percent). Real estate construction and
development loans grew by $16.8 billion, but this was the
smallest quarterly increase for these loans since the second
quarter of 2004. Mortgage-backed securities declined for the
third quarter in a row, falling by $40 million. For the second
quarter in a row, total mortgage assets of insured institutions
(mortgage loans plus mortgage-backed securities) declined.
Loans to commercial and industrial (C&I) borrowers were
one of the few loan categories that had strong growth during
the quarter, increasing by $35.1 billion (2.9 percent). Loans
to individuals other than credit cards also grew strongly, rising by $20.9 billion (3.7 percent), with most of the growth
occurring at a few large lenders. Fed funds sold and securities
purchased under agreements to resell increased by $57.4 billion (10.2 percent).

growth in interest-bearing accounts outweighed a $43.8-billion (3.6-percent) decline in noninterest-bearing deposits.
Among the interest-bearing deposits, time deposits increased
by only $16.4 billion (0.7 percent), while other interest-bearing deposits were up by $90.8 billion (3.1 percent). Nondeposit liabilities increased by $31.1 billion (1.1 percent) during
the quarter, with most of the growth occurring in short-term
borrowings. Borrowings from Federal Home Loan Banks
declined by $14.4 billion (2.3 percent), after falling by $11.7
billion (1.8 percent) in the fourth quarter of 2006.

Insured Bank Failure Is First Since Mid-Year 2004
At the end of March, there were 8,650 FDIC-insured commercial banks and savings institutions reporting financial
results, a net decline of 31 institutions compared with the
number reporting at the end of 2006. There were 41 new
reporters added during the first quarter, while 72 institutions
were absorbed by mergers. One FDIC-insured commercial
bank, with $15.3 million in assets, failed during the quarter.
It was the first failure of an FDIC-insured institution since
June 25, 2004, the longest period without a failure in the history of the FDIC. The number of institutions on the FDIC’s
“Problem List” increased from 50 to 53 during the first quarter, and assets of “problem” institutions rose from $8.3 billion
to $21.4 billion. During the quarter, two insured savings
institutions, with combined assets of $1.6 billion, converted
from mutual to stock ownership.

Interest-Bearing Deposit Growth Is Strong
Total deposits grew by $70.0 billion (0.9 percent), the smallest quarterly increase since the third quarter of 2003. Domestic deposit growth was slightly stronger; deposits in domestic
offices increased by $63.3 billion (1.0 percent), as strong

Authors: Richard Brown
Authors: Chief Economist, FDIC
Authors: (202)898-3927
Authors:
Authors:

Chart 7

Chart 8

Is the Credit Cycle Turning?

Ross Waldrop
Sr. Banking Analyst
Division of Insurance
and Research, FDIC
(202)898-3951

Mortgage Activity Is No Longer Contributing
to Growth

$ Billions
400

Percent of Loans and Leases

Mortgage Assets
Other Interest-Earning Assets

4.0
300

Noncurrent Rate
3.0

200

2.0

Net Charge-Off
Rate*
100

1.0
0

0.0

1985

1988

1991

1994

1997

2000

2003

2007

*Four-quarter average rate. Prior to 1991, ratio reflects insured commercial banks only.

FDIC QUARTERLY

2003

4

2004

2005

2006

2007

2007, VOLUME 1, NO. 1

Quarterly Banking Profile
TABLE I-A. Selected Indicators, All FDIC-Insured Institutions*
2007**
2006**
2006
Return on assets (%) ................................................................
1.21
1.34
1.28
Return on equity (%) .................................................................
11.44
12.95
12.31
8.23
8.27
8.23
Core capital (leverage) ratio (%) ...............................................
Noncurrent assets plus
other real estate owned to assets (%) ...................................
0.56
0.48
0.53
Net charge-offs to loans (%) .....................................................
0.45
0.32
0.39
Asset growth rate (%) ...............................................................
6.88
8.98
9.03
3.32
3.46
3.31
Net interest margin (%) .............................................................
Net operating income growth (%) .............................................
-2.70
8.47
8.56
8,650
8,790
8,681
Number of institutions reporting ................................................
Commercial banks .................................................................
7,380
7,491
7,402
Savings institutions ................................................................
1,270
1,299
1,279
Percentage of unprofitable institutions (%) ...............................
8.87
6.61
7.83
Number of problem institutions .................................................
53
48
50
$21
$5
$8
Assets of problem institutions (in billions) .................................
Number of failed/assisted institutions .......................................
1
0
0
* Excludes insured branches of foreign banks (IBAs)
** Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 31.

2005
1.30
12.73
8.25

2004
1.28
13.20
8.11

2003
1.38
15.05
7.88

2002
1.30
14.08
7.86

0.50
0.50
7.65
3.50
11.43
8,833
7,526
1,307
6.22
52
$7
0

0.53
0.56
11.35
3.54
4.02
8,976
7,631
1,345
5.96
80
$28
4

0.75
0.78
7.58
3.73
16.39
9,181
7,770
1,411
5.99
116
$30
3

0.90
0.97
7.20
3.96
17.58
9,354
7,888
1,466
6.67
136
$39
11

TABLE II-A. Aggregate Condition and Income Data, All FDIC-Insured Institutions
Number of institutions reporting ..........................................................................
Total employees (full-time equivalent) .................................................................
CONDITION DATA
Total assets .........................................................................................................
Loans secured by real estate ...........................................................................
1-4 Family residential mortgages ..................................................................
Nonfarm nonresidential .................................................................................
Construction and development ......................................................................
Home equity lines ..........................................................................................
Commercial & industrial loans ..........................................................................
Loans to individuals ..........................................................................................
Credit cards ...................................................................................................
Farm loans .......................................................................................................
Other loans & leases ........................................................................................
Less: Unearned income ...................................................................................
Total loans & leases .........................................................................................
Less: Reserve for losses ..................................................................................
Net loans and leases ........................................................................................
Securities ..........................................................................................................
Other real estate owned ...................................................................................
Goodwill and other intangibles .........................................................................
All other assets .................................................................................................

1st Quarter
2007
8,650
2,223,402

4th Quarter
2006
8,681
2,206,645

1st Quarter
2006
8,790
2,172,999

%Change
06:1-07:1
-1.6
2.3

$11,981,168
4,535,981
2,169,287
921,233
582,067
556,741
1,250,160
945,365
354,169
52,813
494,960
2,286
7,276,995
78,636
7,198,359
1,969,447
6,961
423,495
2,382,905

$11,860,318
4,507,842
2,175,795
904,408
565,289
559,301
1,215,100
955,256
384,980
54,258
503,031
2,397
7,233,090
77,643
7,155,447
1,980,445
6,060
413,443
2,304,923

$11,209,794
4,255,516
2,101,766
842,433
486,842
530,738
1,125,652
923,569
358,627
49,243
513,196
3,344
6,863,831
77,661
6,786,169
1,956,166
5,117
380,790
2,081,551

6.9
6.6
3.2
9.4
19.6
4.9
11.1
2.4
-1.2
7.3
-3.6
-31.7
6.0
1.3
6.1
0.7
36.0
11.2
14.5

Total liabilities and capital ...................................................................................
Deposits ...........................................................................................................
Domestic office deposits ...............................................................................
Foreign office deposits ..................................................................................
Other borrowed funds .......................................................................................
Subordinated debt ............................................................................................
All other liabilities ..............................................................................................
Equity capital ....................................................................................................
Loans and leases 30-89 days past due ...............................................................
Noncurrent loans and leases ...............................................................................
Restructured loans and leases ............................................................................
Direct and indirect investments in real estate ......................................................
Mortgage-backed securities ................................................................................
Earning assets .....................................................................................................
FHLB Advances ..................................................................................................
Unused loan commitments ..................................................................................
Trust assets .........................................................................................................
Assets securitized and sold*** .............................................................................
Notional amount of derivatives*** ........................................................................

11,981,168
7,895,117
6,694,491
1,200,626
2,174,410
165,323
478,431
1,267,887
70,479
60,541
3,241
1,036
1,195,617
10,513,998
606,501
7,821,527
19,937,320
1,661,338
146,084,457

11,860,318
7,825,158
6,631,123
1,194,036
2,121,122
160,547
505,347
1,248,144
71,751
56,575
2,713
1,091
1,195,657
10,336,160
620,909
7,572,885
19,285,909
1,310,787
132,181,371

11,209,794
7,318,770
6,330,959
987,811
2,118,169
135,458
474,159
1,163,238
56,325
48,604
3,301
1,102
1,188,249
9,795,063
598,302
7,297,380
17,431,010
964,366
111,086,862

6.9
7.9
5.7
21.5
2.7
22.0
0.9
9.0
25.1
24.6
-1.8
-5.9
0.6
7.3
1.4
7.2
14.4
72.3
31.5

(dollar figures in millions)

INCOME DATA
Total interest income ....................................................................................
.
.
Total interest expense ..................................................................................
Net interest income ...................................................................................
Provision for loan and lease losses ..............................................................
Total noninterest income ..............................................................................
.
.
Total noninterest expense ............................................................................
Securities gains (losses) ...............................................................................
Applicable income taxes ...............................................................................
Extraordinary gains, net ...............................................................................
Net income ................................................................................................
.
Net charge-offs .............................................................................................
Cash dividends .............................................................................................
Retained earnings ........................................................................................
.
.
Net operating income ...................................................................................

Full Year
2006
$643,500
313,360
330,140
29,465
240,481
332,305
2,010
68,133
2,663
145,391
26,825
93,436
51,955
141,504

*** Call Report filers only.

FDIC QUARTERLY

Full Year
2005
$522,044
205,035
317,009
29,748
223,389
317,304
4,929
64,616
252
133,910
31,591
73,172
60,738
130,352

%Change
23.3
52.8
4.1
-1.0
7.7
4.7
-59.2
5.4
NM
8.6
-15.1
27.7
-14.5
8.6

1st Quarter
2007
$176,349
89,766
86,583
9,193
62,233
87,661
1,523
17,141
-353
35,990
8,130
26,163
9,827
35,290

1st Quarter
2006
$151,732
68,480
83,252
5,946
61,051
84,619
671
17,710
203
36,903
5,477
18,869
18,033
36,268

%Change
06:1-07:1
16.2
31.1
4.0
54.6
1.9
3.6
127.0
-3.2
NM
-2.5
48.4
38.7
-45.5
-2.7

NM - Not Meaningful

5

2007, VOLUME 1, NO. 1

TABLE III-A. First Quarter 2007, All FDIC-Insured Institutions
Asset Concentration Groups*
FIRST QUARTER
(The way it is...)
Number of institutions reporting .............................
Commercial banks ...............................................
Savings institutions ..............................................
Total assets (in billions) .........................................
Commercial banks ...............................................
Savings institutions ..............................................
Total deposits (in billions) .......................................
Commercial banks ...............................................
Savings institutions ..............................................
Net income (in millions) ..........................................
Commercial banks ...............................................
Savings institutions ..............................................
Performance Ratios (%)
Yield on earning assets ..........................................
Cost of funding earning assets ...............................
Net interest margin ..............................................
Noninterest income to assets .................................
Noninterest expense to assets ...............................
Loan and lease loss provision to assets .................
Net operating income to assets ..............................
Pretax return on assets ..........................................
Return on assets ....................................................
Return on equity .....................................................
Net charge-offs to loans and leases .......................
Loan and lease loss provision to net charge-offs ...
Efficiency ratio ........................................................
% of unprofitable institutions ..................................
% of institutions with earnings gains ......................

All Insured Credit Card International
Institutions
Banks
Banks
8,650
27
4
7,380
24
4
1,270
3
0
$11,981.2
$407.8
$2,435.7
10,133.8
392.5
2,435.7
1,847.3
15.3
0.0
7,895.1
110.1
1,435.9
6,722.5
107.3
1,435.9
1,172.6
2.8
0.0
35,990
3,844
5,564
31,514
3,698
5,564
4,476
146
0

Agricultural Commercial
Banks
Lenders
1,617
4,720
1,612
4,260
5
460
$149.0
$4,758.0
148.5
4,276.7
0.5
481.3
122.4
3,417.6
122.0
3,123.5
0.4
294.0
443
13,959
442
12,714
1
1,245

Mortgage
Lenders
796
161
635
$1,506.9
288.7
1,218.2
956.4
173.8
782.5
3,438
685
2,753

Other
Consumer
Specialized
Lenders
<$1 Billion
116
404
87
363
29
41
$99.5
$45.7
47.4
37.6
52.1
8.2
77.2
33.1
35.3
27.1
41.9
6.1
437
230
284
149
153
82

All Other
<$1 Billion
905
822
83
$119.1
101.2
17.9
98.2
84.0
14.2
284
265
19

All Other
>$1 Billion
61
47
14
$2,459.5
2,405.6
53.9
1,644.3
1,613.7
30.7
7,791
7,713
78

6.77
3.45
3.32
2.09
2.94
0.31
1.18
1.78
1.21
11.44
0.45
113.08
57.56
8.87
48.38

12.51
4.34
8.17
9.61
7.95
2.61
3.47
5.71
3.70
15.38
3.86
92.66
46.22
11.11
37.04

6.04
3.57
2.46
2.55
2.97
0.38
0.89
1.36
0.93
12.10
0.57
153.20
62.88
0.00
50.00

7.01
3.10
3.91
0.65
2.66
0.15
1.20
1.43
1.19
11.05
0.14
164.43
62.08
3.90
52.26

7.04
3.31
3.73
1.45
2.79
0.20
1.21
1.72
1.18
10.46
0.22
131.43
57.55
9.32
51.55

6.56
3.85
2.71
0.92
2.04
0.16
0.77
1.40
0.91
9.07
0.21
108.01
59.01
13.57
26.26

8.27
3.24
5.03
2.47
3.46
1.06
1.70
2.74
1.79
17.38
1.43
95.49
48.35
7.76
40.52

5.54
2.38
3.15
8.46
8.21
0.06
1.99
3.08
2.05
10.02
0.18
160.04
72.16
22.52
43.81

6.42
2.79
3.63
0.80
2.86
0.09
0.94
1.20
0.96
8.61
0.15
104.93
68.81
5.75
47.40

6.18
3.29
2.89
2.34
2.82
0.14
1.26
1.88
1.27
12.97
0.31
85.56
57.51
1.64
54.10

87.75

77.92

85.98

92.31

88.92

91.52

92.68

89.06

92.07

85.88

1.08
129.89

3.86
212.73

1.09
126.57

1.36
130.62

1.13
149.58

0.50
59.67

1.43
209.78

1.32
201.00

1.21
142.43

0.73
94.97

0.56
10.58
8.23
10.52
12.99
91.17
60.08
55.88

1.32
24.48
15.94
15.02
18.14
259.80
70.17
24.95

0.40
7.67
6.04
8.11
11.58
72.70
42.86
28.03

0.79
10.87
10.38
14.04
15.13
79.58
65.38
82.15

0.61
11.33
9.03
10.56
12.77
95.91
68.89
69.26

0.67
10.15
8.12
13.08
14.77
108.17
68.65
63.41

0.55
10.25
9.73
11.68
12.62
98.87
76.72
76.33

0.18
20.27
18.56
43.55
44.56
30.50
22.08
70.20

0.59
11.14
10.86
17.91
19.06
67.30
55.48
82.43

0.45
9.76
7.20
9.62
12.18
79.44
53.11
54.10

Structural Changes
New Charters ......................................................
Institutions absorbed by mergers ........................
Failed Institutions ................................................

41
72
1

1
1
0

0
0
0

1
8
0

12
53
0

0
4
1

0
1
0

27
1
0

0
1
0

0
3
0

PRIOR FIRST QUARTERS
(The way it was...)
Number of institutions ................................... 2006
............................. 2004
............................. 2002

8,790
9,116
9,521

30
34
48

4
6
6

1,647
1,730
1,852

4,629
4,278
4,031

864
1,026
1,201

120
140
214

436
519
463

1,001
1,296
1,611

59
87
95

Total assets (in billions) ................................ 2006
............................. 2004
............................. 2002

$11,209.8
9,377.2
7,823.5

$370.2
332.3
299.3

$1,972.3
1,492.8
1,210.8

$140.3
127.7
118.5

$3,844.9
2,898.5
3,579.5

$1,745.6
1,396.0
1,191.1

$98.6
506.3
151.4

$50.0
58.8
49.5

$128.6
168.0
198.3

$2,859.2
2,396.7
1,025.1

Return on assets (%) .................................... 2006
............................. 2004
............................. 2002

1.34
1.38
1.29

4.57
3.93
3.22

1.16
1.12
0.82

1.26
1.27
1.25

1.35
1.33
1.34

1.05
1.17
1.31

2.19
1.52
1.44

-1.31
1.38
-2.16

1.06
1.10
1.15

1.23
1.36
1.26

Net charge-offs to loans & leases (%) .......... 2006
............................. 2004
............................. 2002

0.32
0.64
0.98

2.95
5.17
7.09

0.53
1.30
1.49

0.09
0.12
0.20

0.17
0.31
0.62

0.11
0.12
0.16

0.95
0.71
1.10

0.16
0.70
0.67

0.12
0.24
0.24

0.18
0.34
0.84

Noncurrent assets plus
OREO to assets (%) .................................. 2006
............................. 2004
............................. 2002

0.48
0.67
0.92

1.17
1.45
1.73

0.42
0.85
1.14

0.67
0.85
0.91

0.49
0.65
0.92

0.55
0.57
0.68

0.51
0.91
1.24

0.23
0.36
0.34

0.53
0.68
0.67

0.37
0.46
0.70

Equity capital ratio (%) .................................. 2006
............................. 2004
............................. 2002

10.38
9.45
9.22

27.22
17.58
14.83

7.95
7.41
7.57

10.81
10.81
10.56

10.29
9.51
9.62

10.81
9.07
8.83

9.63
8.90
8.41

19.39
16.60
16.30

11.04
10.77
10.25

9.55
9.50
8.02

Condition Ratios(%)
Earning assets to total assets ................................
Loss allowance to:
Loans and leases ................................................
Noncurrent loans and leases ...............................
Noncurrent assets plus
other real estate owned to assets .......................
Equity capital ratio ..................................................
Core capital (leverage) ratio ...................................
Tier 1 risk-based capital ratio .................................
Total risk-based capital ratio ..................................
Net loans and leases to deposits ...........................
Net loans to total assets .........................................
Domestic deposits to total assets ...........................

* See Table IV-A (page 8) for explanations.

FDIC QUARTERLY

6

2007, VOLUME 1, NO. 1

Quarterly Banking Profile
TABLE III-A. First Quarter 2007, All FDIC-Insured Institutions
Asset Size Distribution
FIRST QUARTER
(The way it is...)
Number of institutions reporting .............................
Commercial banks ...............................................
Savings institutions ..............................................
Total assets (in billions) ..........................................
Commercial banks ...............................................
Savings institutions ..............................................
Total deposits (in billions) .......................................
Commercial banks ...............................................
Savings institutions ..............................................
Net income (in millions) ..........................................
Commercial banks ...............................................
Savings institutions ..............................................
Performance Ratios (annualized, %)
Yield on earning assets ..........................................
Cost of funding earning assets ...............................
Net interest margin ..............................................
Noninterest income to assets .................................
Noninterest expense to assets ...............................
Loan and lease loss provision to assets .................
Net operating income to assets ..............................
Pretax return on assets ..........................................
Return on assets ....................................................
Return on equity .....................................................
Net charge-offs to loans and leases .......................
Loan and lease loss provision to net charge-offs ...
Efficiency ratio ........................................................
% of unprofitable institutions ..................................
% of institutions with earnings gains ......................

$100 Million $1 Billion
All
Less
to
to
Insured
than
$10 Billion
Institutions $100 Million $1 Billion
8,650
3,598
4,397
536
7,380
3,212
3,672
408
1,270
386
725
128
$11,981.2
$189.6
$1,298.2
$1,420.9
10,133.8
169.8
1,052.3
1,083.2
1,847.3
19.8
245.9
337.6
7,895.1
155.7
1,046.9
1,027.4
6,722.5
140.6
860.3
790.3
1,172.6
15.1
186.6
237.2
35,990
402
3,506
4,052
31,514
373
3,104
3,461
4,476
29
402
591

Geographic Regions*
Greater
than $10
Billion
119
88
31
$9,072.4
7,828.5
1,244.0
5,665.0
4,931.3
733.7
28,030
24,576
3,454

New York
1,089
575
514
$2,202.7
1,563.4
639.2
1,405.6
972.6
433.0
6,077
5,065
1,012

Atlanta
1,221
1,076
145
$2,948.7
2,680.3
268.5
1,979.6
1,804.6
175.0
9,065
8,501
564

Chicago
1,818
1,500
318
$2,778.8
2,625.2
153.6
1,738.2
1,627.3
110.9
7,429
7,191
238

Kansas
City
2,007
1,902
105
$863.5
825.7
37.7
636.8
610.8
26.0
3,776
3,704
71

San
Dallas
Francisco
1,742
773
1,622
705
120
68
$662.8
$2,524.8
556.8
1,882.5
106.0
642.3
507.2
1,627.8
441.4
1,265.9
65.8
361.9
1,825
7,818
1,577
5,475
248
2,343

6.77
3.45
3.32
2.09
2.94
0.31
1.18
1.78
1.21
11.44
0.45
113.08
57.56
8.87
48.38

6.96
2.89
4.07
1.21
3.69
0.16
0.85
1.10
0.86
6.47
0.14
186.87
74.40
15.20
46.66

7.10
3.21
3.89
1.16
3.13
0.16
1.08
1.47
1.09
10.43
0.13
170.95
65.58
4.55
49.83

7.02
3.35
3.67
1.47
2.86
0.25
1.14
1.71
1.15
10.31
0.25
149.69
58.35
3.17
48.51

6.68
3.51
3.17
2.34
2.91
0.34
1.21
1.85
1.24
11.91
0.55
107.27
56.03
2.52
46.22

6.83
3.45
3.37
2.24
3.11
0.44
1.08
1.64
1.10
8.73
0.81
96.19
57.65
13.31
34.80

6.58
3.44
3.14
1.82
2.63
0.11
1.22
1.84
1.24
12.31
0.22
85.15
56.84
12.20
47.91

6.23
3.41
2.82
2.15
2.81
0.21
1.06
1.60
1.08
11.80
0.31
122.44
59.77
8.75
43.34

7.56
3.17
4.39
3.43
4.24
0.51
1.74
2.50
1.75
16.53
0.62
113.39
57.25
6.03
49.38

7.09
3.26
3.84
1.35
3.14
0.17
1.11
1.48
1.11
10.59
0.19
140.67
64.63
5.40
58.96

7.19
3.63
3.55
1.94
2.82
0.49
1.19
1.88
1.25
11.44
0.55
136.90
54.44
12.81
53.69

87.75

92.26

92.14

91.11

86.51

87.05

87.26

87.67

87.13

89.70

88.75

1.08
129.89

1.31
131.07

1.18
146.86

1.17
155.84

1.04
122.91

1.40
153.69

0.88
172.26

1.17
120.87

1.16
88.51

1.12
133.30

0.95
114.26

0.56
10.58
8.23
10.52
12.99
91.17
60.08
55.88

0.77
13.24
13.17
19.42
20.49
75.05
61.63
82.11

0.67
10.50
10.05
13.52
14.64
84.90
68.46
80.52

0.57
11.24
9.46
12.36
13.64
93.62
67.70
71.68

0.54
10.44
7.66
9.66
12.53
92.34
57.66
49.32

0.55
12.73
9.09
12.50
14.61
88.95
56.76
56.64

0.36
10.04
7.38
9.31
11.72
91.60
61.50
59.92

0.60
9.13
7.36
9.02
11.78
85.70
53.61
52.31

1.07
10.57
8.58
10.10
12.78
96.77
71.37
68.70

0.63
10.59
8.76
12.01
13.33
79.95
61.18
75.66

0.58
10.94
9.16
11.91
14.65
99.73
64.30
44.84

Structural Changes
New Charters ......................................................
Institutions absorbed by mergers ........................
Failed Institutions ................................................

41
72
1

37
30
1

3
35
0

1
7
0

0
0
0

7
11
1

12
8
0

4
13
0

2
13
0

7
17
0

9
10
0

PRIOR FIRST QUARTERS
(The way it was...)
Number of institutions ................................... 2006
................................ 2004
................................ 2002

8,790
9,116
9,521

3,826
4,300
5,000

4,334
4,238
3,982

511
465
437

119
113
102

1,106
1,162
1,238

1,225
1,231
1,255

1,863
1,996
2,097

2,055
2,122
2,202

1,783
1,853
1,940

758
752
789

Total assets (in billions) ................................ 2006
................................ 2004
................................ 2002

$11,209.8
9,377.2
7,823.5

$199.0
221.9
250.0

$1,259.4
1,169.4
1,068.7

$1,395.6
1,282.1
1,261.3

$8,355.8
6,703.9
5,243.6

$2,866.2
3,186.8
2,651.7

$2,759.4
1,995.6
1,571.3

$2,604.0
1,700.3
1,468.8

$819.6
738.8
415.6

$620.7
571.0
545.6

$1,539.9
1,184.9
1,170.6

Return on assets (%) .................................... 2006
................................ 2004
................................ 2002

1.34
1.38
1.29

0.95
1.00
0.98

1.11
1.17
0.99

1.30
1.48
1.42

1.39
1.41
1.34

1.29
1.32
1.16

1.33
1.32
1.35

1.10
1.38
1.23

1.59
1.52
1.54

1.31
1.35
1.36

1.71
1.57
1.48

Net charge-offs to loans & leases (%) .......... 2006
................................ 2004
................................ 2002

0.32
0.64
0.98

0.12
0.19
0.22

0.12
0.22
0.29

0.18
0.44
0.68

0.39
0.78
1.24

0.47
0.96
1.54

0.16
0.36
0.64

0.23
0.43
0.78

0.35
0.90
1.21

0.16
0.34
0.39

0.52
0.66
0.78

Noncurrent assets plus
OREO to assets (%) .................................. 2006
................................ 2004
................................ 2002

0.48
0.67
0.92

0.69
0.84
0.85

0.52
0.66
0.73

0.44
0.59
0.75

0.48
0.68
1.00

0.39
0.69
0.98

0.31
0.46
0.83

0.53
0.79
1.04

0.84
0.88
0.83

0.68
0.75
0.84

0.60
0.59
0.80

Equity capital ratio (%) .................................. 2006
................................ 2004
................................ 2002

10.38
9.45
9.22

12.29
11.73
11.03

10.28
10.18
9.85

10.78
10.71
9.75

10.28
9.00
8.88

11.15
9.13
8.96

9.77
8.58
9.35

9.02
8.74
8.80

10.48
10.44
9.95

10.19
9.64
9.56

12.36
12.07
9.75

Condition Ratios(%)
Earning assets to total assets ................................
Loss Allowance to:
Loans and leases ................................................
Noncurrent loans and leases ...............................
Noncurrent assets plus
other real estate owned to assets .......................
Equity capital ratio ..................................................
Core capital (leverage) ratio ...................................
Tier 1 risk-based capital ratio .................................
Total risk-based capital ratio ..................................
Net loans and leases to deposits ...........................
Net loans to total assets .........................................
Domestic deposits to total assets ...........................

* See Table IV-A (page 9) for explanations.

FDIC QUARTERLY

7

2007, VOLUME 1, NO. 1

TABLE IV-A. Full-Year 2006, All FDIC-Insured Institutions
Asset Concentration Groups*
Other
Specialized
<$1 Billion
412
370
42
$42.2
34.7
7.5
29.9
24.5
5.4
673
283
390

All Other
<$1 Billion
895
815
80
$119.5
103.1
16.5
97.6
84.6
13.1
1,218
1,134
84

All Other
>$1 Billion
57
43
14
$2,344.0
2,290.5
53.5
1,541.2
1,512.1
29.1
28,553
28,041
512

Performance Ratios (%)
Yield on earning assets ..........................................
Cost of funding earning assets ...............................
Net interest margin ..............................................
Noninterest income to assets .................................
Noninterest expense to assets ...............................
Loan and lease loss provision to assets .................
Net operating income to assets ..............................
Pretax return on assets ...........................................
Return on assets .....................................................
Return on equity .....................................................
Net charge-offs to loans and leases .......................
Loan and lease loss provision to net charge-offs ...
Efficiency ratio ........................................................
% of unprofitable institutions ...................................
% of institutions with earnings gains .......................

6.45
3.14
3.31
2.12
2.93
0.26
1.25
1.88
1.28
12.31
0.39
109.84
56.82
7.83
55.52

12.84
4.01
8.82
11.19
8.72
2.65
4.19
6.52
4.19
16.81
3.48
107.62
44.97
3.85
76.92

5.60
3.34
2.26
2.31
2.77
0.23
0.90
1.39
1.01
12.45
0.48
104.20
63.77
0.00
75.00

6.83
2.79
4.04
0.68
2.73
0.16
1.24
1.49
1.23
11.48
0.17
134.88
61.75
2.63
53.06

6.73
3.00
3.74
1.52
2.78
0.18
1.30
1.85
1.28
11.77
0.22
124.31
56.32
8.93
63.65

5.82
3.31
2.51
1.24
2.14
0.12
0.84
1.45
0.94
10.40
0.15
111.42
59.24
9.91
27.29

8.84
3.31
5.52
2.49
4.67
1.43
0.94
2.71
1.75
14.23
1.40
126.51
60.75
6.45
50.81

5.39
2.28
3.11
8.62
8.76
0.17
1.42
2.50
1.50
6.92
0.40
158.15
68.91
22.33
45.87

6.21
2.49
3.72
1.06
3.05
0.12
1.04
1.30
1.04
9.61
0.20
108.32
67.87
3.69
46.82

6.06
3.08
2.99
2.20
2.72
0.09
1.26
1.92
1.26
12.98
0.22
78.88
56.27
1.75
64.91

87.15

75.96

85.33

91.55

88.55

91.14

91.26

88.19

91.67

84.81

1.07
137.24

3.82
201.53

1.03
121.83

1.34
154.84

1.11
164.45

0.49
70.71

1.82
176.03

1.42
193.48

1.22
150.09

0.74
92.46

0.53
10.52
8.23
10.52
12.98
91.44
60.33
55.91

1.37
22.88
15.33
12.62
15.74
262.66
69.35
22.85

0.40
7.75
6.04
8.27
11.85
72.36
43.87
29.54

0.67
10.73
10.35
13.95
15.04
79.81
65.33
81.86

0.54
11.16
9.02
10.49
12.68
95.41
68.43
68.75

0.56
9.91
7.94
12.78
14.43
110.39
69.93
63.26

0.85
14.16
12.94
16.01
17.00
112.67
78.22
68.22

0.20
21.10
18.87
44.64
45.75
30.80
21.81
69.11

0.56
10.98
10.83
17.81
18.98
68.05
55.58
81.64

0.45
9.78
7.20
9.95
12.46
79.23
52.09
52.80

191
342
0

0
3
0

0
5
0

3
32
0

50
266
0

2
11
0

2
1
0

128
4
0

5
9
0

1
11
0

PRIOR FULL YEARS
(The way it was...)
Number of institutions .................................. 2005
................................ 2003
................................ 2001

8,833
9,181
9,614

33
36
56

4
6
5

1,685
1,767
1,875

4,617
4,254
3,967

887
1,033
1,242

125
157
228

425
529
477

995
1,308
1,663

62
91
101

Total assets (in billions) ............................... 2005
................................ 2003
................................ 2001

$10,878.2
9,075.3
7,869.1

$359.1
348.4
334.7

$1,851.2
1,448.0
1,176.3

$142.3
129.5
120.1

$4,257.3
2,923.8
3,539.1

$1,655.1
1,657.6
1,178.8

$117.3
146.6
140.8

$47.7
61.1
49.7

$128.7
171.1
202.9

$2,319.6
2,189.3
1,126.7

Return on assets (%) ................................... 2005
................................ 2003
................................ 2001

1.30
1.38
1.14

2.90
4.08
2.89

0.86
1.10
0.84

1.27
1.20
1.12

1.37
1.28
1.12

1.07
1.38
1.05

1.55
1.31
1.29

2.19
1.85
1.84

1.09
1.06
1.04

1.41
1.34
1.09

Net charge-offs to loans & leases (%) ......... 2005
................................ 2003
................................ 2001

0.50
0.78
0.83

4.64
5.22
4.52

0.87
1.40
0.88

0.18
0.28
0.36

0.23
0.46
0.68

0.12
0.18
0.19

1.44
2.09
1.39

0.26
1.22
0.50

0.23
0.38
0.33

0.25
0.62
0.75

Noncurrent assets plus
OREO to assets (%) ................................. 2005
................................ 2003
................................ 2001

0.50
0.75
0.87

1.32
1.63
1.54

0.46
0.93
1.00

0.61
0.81
0.81

0.48
0.68
0.92

0.56
0.73
0.65

0.51
0.99
1.30

0.24
0.33
0.31

0.54
0.71
0.66

0.39
0.59
0.64

19.47
16.74
17.56

10.83
10.45
10.37

9.53
8.87
7.95

Structural Changes
New Charters .......................................................
Institutions absorbed by mergers ........................
Failed Institutions .................................................

Agricultural
Commercial
Banks
Lenders
1,634
4,712
1,628
4,246
6
466
$149.2
$4,904.9
148.7
4,415.5
0.5
489.4
122.2
3,517.8
121.7
3,226.0
0.4
291.9
1,765
60,211
1,759
55,087
6
5,124

Consumer
Lenders
124
95
29
$109.9
41.4
68.6
76.3
31.1
45.3
1,967
997
970

Number of institutions reporting ..............................
Commercial banks ...............................................
Savings institutions ..............................................
Total assets (in billions) ..........................................
Commercial banks ...............................................
Savings institutions ..............................................
Total deposits (in billions) .......................................
Commercial banks ...............................................
Savings institutions ..............................................
Net income (in millions) ..........................................
Commercial banks ...............................................
Savings institutions ..............................................

Condition Ratios (%)
Earning assets to total assets .................................
Loss Allowance to:
Loans and leases ................................................
Noncurrent loans and leases ...............................
Noncurrent assets plus
other real estate owned to assets ........................
Equity capital ratio ..................................................
Core capital (leverage) ratio ...................................
Tier 1 risk-based capital ratio ..................................
Total risk-based capital ratio ...................................
Net loans and leases to deposits ............................
Net loans to total assets .........................................
Domestic deposits to total assets ...........................

Credit Card International
Banks
Banks
26
4
24
4
2
0
$408.4
$2,337.2
406.6
2,337.2
1.8
0.0
107.8
1,417.0
107.1
1,417.0
0.8
0.0
15,616
22,388
15,529
22,388
87
0

Mortgage
Lenders
817
177
640
$1,445.0
312.7
1,132.2
915.3
207.4
707.9
13,000
3,147
9,853

All Insured
Institutions
8,681
7,402
1,279
$11,860.3
10,090.4
1,769.9
7,825.2
6,731.4
1,093.8
145,391
128,365
17,026

Equity capital ratio (%) ................................. 2005
10.28
21.51
8.30
10.54
10.83
9.39
10.11
................................ 2003
9.15
16.04
7.39
10.64
9.24
9.10
7.30
................................ 2001
8.98
13.12
7.51
10.47
9.46
8.25
7.60
*Asset Concentration Group Definitions (Groups are hierarchical and mutually exclusive):
Credit-card Lenders - Institutions whose credit-card loans plus securitized receivables exceed 50 percent of total assets plus securitized receivables.
International Banks - Banks with assets greater than $10 billion and more than 25 percent of total assets in foreign offices.
Agricultural Banks - Banks whose agricultural production loans plus real estate loans secured by farmland exceed 25 percent of the total loans and leases.
Commercial Lenders - Institutions whose commercial and industrial loans, plus real estate construction and development loans, plus loans
secured by commercial real estate properties exceed 25 percent of total assets.
Mortgage Lenders - Institutions whose residential mortgage loans, plus mortgage-backed securities, exceed 50 percent of total assets.
Consumer Lenders - Institutions whose residential mortgage loans, plus credit-card loans, plus other loans to individuals, exceed 50 percent of total assets.
Other Specialized < $1 Billion - Institutions with assets less than $1 billion, whose loans and leases are less than 40 percent of total assets.
All Other < $1 billion - Institutions with assets less than $1 billion that do not meet any of the definitions above, they have significant lending
activity with no identified asset concentrations.
All Other > $1 billion - Institutions with assets greater than $1 billion that do not meet any of the definitions above, they have significant lending
activity with no identified asset concentrations.

FDIC QUARTERLY

8

2007, VOLUME 1, NO. 1

Quarterly Banking Profile
TABLE IV-A. Full-Year 2006, All FDIC-Insured Institutions
Asset Size Distribution

Number of institutions reporting .............................
Commercial banks ...............................................
Savings institutions ..............................................
Total assets (in billions) ..........................................
Commercial banks ...............................................
Savings institutions ..............................................
Total deposits (in billions) .......................................
Commercial banks ...............................................
Savings institutions ..............................................
Net income (in millions) ..........................................
Commercial banks ...............................................
Savings institutions ..............................................
Performance Ratios (%)
Yield on earning assets ..........................................
Cost of funding earning assets ...............................
Net interest margin ..............................................
Noninterest income to assets .................................
Noninterest expense to assets ...............................
Loan and lease loss provision to assets .................
Net operating income to assets ..............................
Pretax return on assets ..........................................
Return on assets ....................................................
Return on equity .....................................................
Net charge-offs to loans and leases .......................
Loan and lease loss provision to net charge-offs ...
Efficiency ratio ........................................................
% of unprofitable institutions ..................................
% of institutions with earnings gains ......................

$100 Million $1 Billion
Less
All
to
to
than $100
Insured
$10 Billion
$1 Billion
Million
Institutions
8,681
3,633
4,399
530
7,402
3,246
3,662
406
1,279
387
737
124
$11,860.3
$189.9
$1,290.0
$1,397.7
10,090.4
170.4
1,039.6
1,076.4
1,769.9
19.6
250.4
321.3
7,825.2
155.9
1,035.6
992.4
6,731.4
141.0
847.5
767.6
1,093.8
14.9
188.1
224.8
145,391
1,694
14,492
16,287
128,365
1,546
12,277
13,726
17,026
148
2,214
2,561

Geographic Regions*
Greater
than $10
Billion
New York
119
1,093
88
575
31
518
$8,982.7
$2,214.5
7,804.1
1,575.7
1,178.6
638.8
5,641.3
1,395.9
4,975.3
972.8
666.0
423.0
112,919
27,447
100,816
21,975
12,103
5,471

Atlanta
1,218
1,074
144
$2,911.4
2,749.9
161.4
1,966.9
1,859.9
107.0
36,194
34,881
1,313

Chicago
1,826
1,507
319
$2,746.2
2,593.9
152.3
1,746.9
1,639.0
107.8
29,212
28,029
1,182

Kansas
City
2,018
1,914
104
$859.8
822.8
37.0
627.5
602.8
24.7
14,741
14,444
297

San
Dallas
Francisco
1,753
773
1,629
703
124
70
$652.3
$2,476.1
547.1
1,800.9
105.1
675.2
494.3
1,593.7
429.9
1,226.9
64.5
366.8
7,669
30,129
6,530
22,506
1,139
7,623

6.45
3.14
3.31
2.12
2.93
0.26
1.25
1.88
1.28
12.31
0.39
109.84
56.82
7.83
55.52

6.62
2.51
4.11
1.18
3.62
0.18
0.91
1.18
0.92
7.04
0.18
163.60
72.66
13.60
50.59

6.91
2.88
4.02
1.24
3.20
0.18
1.15
1.58
1.16
11.27
0.16
166.21
63.62
3.96
58.60

6.73
3.05
3.69
1.40
2.78
0.18
1.22
1.80
1.22
11.44
0.20
135.23
57.16
2.08
62.45

6.33
3.21
3.12
2.38
2.89
0.28
1.27
1.95
1.31
12.75
0.46
104.15
55.48
0.84
61.34

6.50
3.14
3.35
2.41
3.06
0.46
1.21
1.88
1.27
10.45
0.72
111.71
54.65
11.07
40.53

6.46
3.19
3.26
1.90
2.63
0.13
1.32
1.96
1.31
13.27
0.19
108.89
54.55
11.82
66.34

5.97
3.20
2.76
2.11
2.77
0.17
1.09
1.59
1.10
12.16
0.28
110.55
60.00
6.68
43.87

7.50
2.92
4.58
3.26
4.23
0.37
1.76
2.62
1.77
16.29
0.55
95.93
57.23
4.61
52.97

6.75
2.82
3.93
1.42
3.19
0.15
1.20
1.63
1.23
12.05
0.21
110.96
63.70
5.31
65.89

6.51
3.18
3.33
1.88
2.79
0.33
1.20
1.92
1.30
12.00
0.42
114.01
56.18
13.84
70.38

87.15

91.82

91.85

90.66

85.83

86.53

86.72

86.52

85.96

89.37

88.74

1.07
137.24

1.31
137.82

1.16
163.44

1.16
170.67

1.04
128.28

1.41
163.72

0.89
190.09

1.15
125.88

1.16
88.95

1.11
134.99

0.90
121.70

0.53
10.52
8.23
10.52
12.98
91.44
60.33
55.91

0.73
13.01
12.99
19.20
20.27
75.29
61.80
82.07

0.59
10.39
9.99
13.49
14.62
85.42
68.57
80.18

0.52
10.98
9.37
12.27
13.56
94.39
67.02
70.39

0.52
10.42
7.69
9.68
12.53
92.48
58.08
49.62

0.51
12.49
8.99
12.31
14.38
89.41
56.36
55.71

0.33
10.05
7.49
9.36
11.67
91.41
61.75
59.88

0.57
9.07
7.24
8.99
11.79
85.25
54.23
52.99

1.05
10.64
8.76
10.09
12.81
96.75
70.61
68.42

0.62
10.42
8.69
11.99
13.29
80.88
61.30
74.99

0.53
10.92
9.23
12.05
14.82
101.24
65.16
45.29

Structural Changes
New Charters ......................................................
Institutions absorbed by mergers ........................
Failed Institutions ................................................

191
342
0

183
135
0

4
165
0

4
31
0

0
11
0

22
37
0

70
78
0

17
70
0

12
71
0

19
48
0

51
38
0

PRIOR FULL YEARS
(The way it was...)
Number of institutions ................................... 2005
................................ 2003
................................ 2001

8,833
9,181
9,614

3,864
4,390
5,063

4,339
4,210
4,006

512
471
444

118
110
101

1,110
1,173
1,263

1,227
1,227
1,273

1,874
2,011
2,108

2,070
2,133
2,216

1,791
1,866
1,955

761
771
799

Total assets (in billions) ................................ 2005
................................ 2003
................................ 2001

$10,878.2
9,075.3
7,869.1

$200.8
225.7
251.2

$1,247.5
1,160.5
1,070.7

$1,393.2
1,312.6
1,272.5

$8,036.7
6,376.5
5,274.7

$2,768.2
3,084.8
2,703.4

$2,683.9
1,882.6
1,586.7

$2,505.8
1,693.8
1,492.9

$803.6
456.3
406.4

$607.7
563.3
543.3

$1,508.9
1,394.3
1,136.4

Return on assets (%) .................................... 2005
................................ 2003
................................ 2001

1.30
1.38
1.14

1.00
0.95
0.85

1.24
1.18
1.08

1.29
1.41
1.26

1.31
1.43
1.14

1.22
1.28
1.01

1.42
1.38
1.11

1.00
1.31
1.07

1.62
1.63
1.42

1.19
1.37
1.25

1.60
1.62
1.46

Net charge-offs to loans & leases (%) .......... 2005
................................ 2003
................................ 2001

0.50
0.78
0.83

0.20
0.31
0.33

0.19
0.36
0.35

0.24
0.54
0.83

0.61
0.94
0.96

0.81
1.16
1.02

0.24
0.54
0.75

0.33
0.72
0.79

0.56
1.09
0.80

0.24
0.40
0.43

0.70
0.58
0.80

Noncurrent assets plus
OREO to assets (%) .................................. 2005
................................ 2003
................................ 2001

0.50
0.75
0.87

0.68
0.83
0.81

0.52
0.69
0.70

0.44
0.62
0.72

0.50
0.78
0.95

0.44
0.78
0.89

0.30
0.56
0.86

0.54
0.86
0.99

0.86
0.84
0.77

0.73
0.76
0.79

0.59
0.76
0.76

10.45
10.59
8.93

10.17
9.60
9.38

12.40
10.05
9.12

Condition Ratios (%)
Earning assets to total assets ................................
Loss Allowance to:
Loans and leases ................................................
Noncurrent loans and leases ...............................
Noncurrent assets plus
other real estate owned to assets .......................
Equity capital ratio ..................................................
Core capital (leverage) ratio ...................................
Tier 1 risk-based capital ratio .................................
Total risk-based capital ratio ..................................
Net loans and leases to deposits ...........................
Net loans to total assets .........................................
Domestic deposits to total assets ...........................

Equity capital ratio (%) .................................. 2005
10.28
12.16
10.21
10.68
10.18
10.54
9.80
9.23
................................ 2003
9.15
11.49
10.05
10.35
8.66
9.05
8.78
8.49
................................ 2001
8.98
11.08
9.85
9.49
8.58
8.77
9.62
8.47
* Regions:
New York - Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Puerto Rico
Rhode Island, Vermont, U.S. Virgin Islands
Atlanta - Alabama, Florida, Georgia, North Carolina, South Carolina, Virginia, West Virginia
Chicago - Illinois, Indiana, Kentucky, Michigan, Ohio, Wisconsin
Kansas City - Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota
Dallas - Arkansas, Colorado, Louisiana, Mississippi, New Mexico, Oklahoma, Tennessee, Texas
San Francisco - Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Pacific Islands, Utah, Washington, Wyoming

FDIC QUARTERLY

9

2007, VOLUME 1, NO. 1

TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Concentration Groups*
March 31, 2007

All Insured
Institutions

Credit Card
Banks

International
Banks

Agricultural
Banks

Commercial
Lenders

Mortgage
Lenders

Consumer
Lenders

Other
Specialized
<$1 Billion

All Other
<$1 Billion

All Other
>$1 Billion

Percent of Loans 30-89 Days Past Due
All loans secured by real estate .........................................
Construction and development .......................................
Nonfarm nonresidential ...................................................
Multifamily residential real estate ....................................
Home equity loans ..........................................................
Other 1-4 family residential .............................................
Commercial and industrial loans ........................................
Loans to individuals ............................................................
Credit card loans .............................................................
Other loans to individuals ................................................
All other loans and leases (including farm) ........................
Total loans and leases .......................................................

0.96
1.08
0.58
0.49
0.69
1.21
0.63
1.62
1.91
1.44
0.64
0.97

2.43
0.00
0.00
0.00
2.48
2.39
2.57
1.96
1.99
1.74
0.07
1.84

1.39
2.50
0.99
0.31
0.73
1.69
0.42
1.78
1.88
1.74
0.80
1.13

1.36
2.08
1.14
0.78
0.66
1.74
1.70
1.97
1.13
2.02
1.31
1.44

0.89
1.05
0.60
0.66
0.59
1.20
0.67
1.35
1.87
1.27
0.75
0.87

1.02
1.49
0.42
0.16
0.83
1.12
0.72
1.03
1.49
0.80
0.63
1.01

0.63
0.82
0.72
0.00
0.36
0.79
1.26
1.43
1.42
1.43
0.12
1.14

1.21
1.16
1.17
1.23
0.57
1.29
2.01
1.87
2.75
1.75
0.73
1.38

1.45
1.30
1.19
0.65
0.64
1.67
1.58
2.07
1.17
2.10
0.80
1.50

0.80
0.85
0.33
0.28
0.73
1.00
0.44
1.52
1.83
1.46
0.31
0.77

Percent of Loans Noncurrent**
All real estate loans ............................................................
Construction and development .......................................
Nonfarm nonresidential ...................................................
Multifamily residential real estate ....................................
Home equity loans ..........................................................
Other 1-4 family residential .............................................
Commercial and industrial loans ........................................
Loans to individuals ............................................................
Credit card loans .............................................................
Other loans to individuals ................................................
All other loans and leases (including farm) ........................
Total loans and leases .......................................................

0.89
0.95
0.62
0.60
0.44
1.13
0.62
1.17
1.93
0.71
0.23
0.83

2.08
0.00
0.00
0.00
2.00
2.21
1.97
1.99
2.07
1.41
0.02
1.82

1.10
1.03
0.63
0.36
0.36
1.35
0.41
1.56
1.99
1.38
0.15
0.86

1.04
1.93
1.31
0.61
0.37
0.87
1.60
0.70
1.06
0.68
0.77
1.04

0.83
0.91
0.61
0.79
0.39
1.14
0.64
0.65
1.65
0.51
0.33
0.75

0.85
1.38
0.70
0.25
0.62
0.91
0.73
0.56
1.27
0.21
0.28
0.84

0.35
0.91
0.54
0.11
0.05
0.50
1.06
0.81
1.30
0.65
0.05
0.68

0.63
0.76
0.68
1.54
0.09
0.57
1.19
0.49
1.03
0.42
0.40
0.66

0.87
1.40
1.17
1.45
0.35
0.72
1.20
0.60
1.04
0.59
0.58
0.85

1.00
1.01
0.48
0.37
0.45
1.41
0.54
0.60
1.70
0.38
0.14
0.77

Percent of Loans Charged-off (net, YTD)
All real estate loans ............................................................
Construction and development .......................................
Nonfarm nonresidential ...................................................
Multifamily residential real estate ....................................
Home equity loans ..........................................................
Other 1-4 family residential .............................................
Commercial and industrial loans ........................................
Loans to individuals ............................................................
Credit card loans .............................................................
Other loans to individuals ................................................
All other loans and leases (including farm) ........................
Total loans and leases .......................................................

0.10
0.07
0.04
0.02
0.24
0.10
0.35
2.43
4.07
1.38
0.12
0.45

1.57
0.00
0.00
0.00
1.95
0.86
3.96
4.17
4.23
3.68
0.00
3.86

0.21
0.00
0.05
0.00
0.26
0.22
0.07
2.66
3.14
2.45
-0.02
0.57

0.04
0.12
0.07
0.00
0.10
0.07
0.48
0.59
3.15
0.43
0.00
0.14

0.09
0.08
0.04
0.03
0.22
0.13
0.29
1.18
3.56
0.83
0.25
0.22

0.09
0.10
0.01
0.00
0.28
0.07
0.28
2.72
6.54
0.54
0.30
0.21

0.14
0.27
0.01
0.00
0.13
0.16
3.11
1.87
3.62
1.27
0.32
1.42

0.03
-0.01
0.03
0.00
0.63
0.02
0.27
0.51
2.35
0.26
0.43
0.18

0.05
0.08
0.05
0.05
0.08
0.05
0.30
0.53
3.94
0.43
0.00
0.15

0.08
0.03
0.01
0.06
0.22
0.05
0.33
1.53
3.75
1.07
0.15
0.31

Loans Outstanding (in billions)
All real estate loans ............................................................
Construction and development .......................................
Nonfarm nonresidential ...................................................
Multifamily residential real estate ....................................
Home equity loans ..........................................................
Other 1-4 family residential .............................................
Commercial and industrial loans ........................................
Loans to individuals ............................................................
Credit card loans .............................................................
Other loans to individuals ................................................
All other loans and leases (including farm) ........................
Total loans and leases .......................................................

$4,536.0
582.1
921.2
192.0
556.7
2,169.3
1,250.2
945.4
354.2
591.2
547.8
7,279.3

$2.3
0.0
0.0
0.0
1.3
1.0
24.5
243.9
215.5
28.5
26.8
297.6

$446.4
8.3
24.0
11.2
88.0
269.0
249.3
184.9
53.3
131.5
175.4
1,056.0

$55.1
5.1
14.7
1.0
0.9
14.7
14.1
6.4
0.4
6.0
23.2
98.7

$2,227.2
485.5
702.1
115.7
201.3
687.0
673.9
243.6
30.5
213.1
171.9
3,316.5

$958.8
26.0
44.0
47.4
94.1
746.8
26.3
49.6
16.5
33.1
5.1
1,039.8

$24.4
0.6
2.1
0.2
8.6
12.8
7.2
45.0
10.9
34.0
1.0
77.5

$6.3
0.5
1.8
0.1
0.2
3.5
1.3
1.7
0.2
1.5
0.9
10.2

$47.6
3.2
11.4
0.8
1.7
27.3
6.9
8.1
0.2
7.9
4.3
66.9

$767.9
52.8
121.2
15.5
160.6
407.3
246.7
162.1
26.6
135.5
139.2
1,315.9

Memo: Other Real Estate Owned (in millions)
All other real estate owned .................................................
Construction and development .......................................
Nonfarm nonresidential ...................................................
Multifamily residential real estate ....................................
1-4 family residential .......................................................
Farmland .........................................................................

6,961.1
688.1
1,188.3
367.6
3,590.8
66.8

-6.4
0.0
0.1
0.0
1.0
0.0

698.1
1.0
6.0
2.0
256.1
0.0

145.0
15.9
53.5
5.2
42.5
27.6

3,710.2
574.6
953.3
330.9
1,595.1
33.0

1,345.8
61.7
59.9
8.8
1,186.5
0.0

21.5
0.4
6.6
0.2
14.3
0.2

13.7
0.5
8.4
0.0
4.2
0.6

132.0
16.3
54.3
5.8
53.0
2.6

901.1
17.8
46.3
14.7
438.1
2.6

* See Table IV-A (page 8) for explanations.
** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.

FDIC QUARTERLY

10

2007, VOLUME 1, NO. 1

Quarterly Banking Profile
TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Geographic Regions*

Asset Size Distribution
March 31, 2007

All
Less
$100 Million
Insured
than
to
Institutions $100 Million $1 Billion

$1 Billion
to
$10 Billion

Greater
than $10
Billion

New York

Atlanta

Chicago

Kansas
City

Dallas

San
Francisco

Percent of Loans 30-89 Days Past Due
All loans secured by real estate .............................
Construction and development ...........................
Nonfarm nonresidential .......................................
Multifamily residential real estate ........................
Home equity loans ..............................................
Other 1-4 family residential .................................
Commercial and industrial loans ............................
Loans to individuals ...............................................
Credit card loans .................................................
Other loans to individuals ....................................
All other loans and leases (including farm) ............
Total loans and leases ...........................................

0.96
1.08
0.58
0.49
0.69
1.21
0.63
1.62
1.91
1.44
0.64
0.97

1.43
1.08
1.13
0.97
0.90
1.87
1.63
2.31
1.68
2.32
1.28
1.51

1.02
1.20
0.81
0.74
0.70
1.20
1.12
1.58
2.43
1.49
0.91
1.06

0.76
1.03
0.52
0.87
0.61
0.82
0.86
1.56
1.71
1.49
0.68
0.83

0.99
1.05
0.47
0.29
0.70
1.25
0.52
1.62
1.92
1.42
0.60
0.97

0.75
0.95
0.67
0.27
0.59
0.82
0.88
1.84
2.02
1.55
0.67
0.98

0.84
0.76
0.40
0.59
0.72
1.09
0.43
1.29
1.94
1.19
0.50
0.79

1.17
1.74
0.81
1.48
0.68
1.38
0.71
1.44
1.81
1.32
0.67
1.06

0.94
1.17
0.65
0.46
0.77
1.18
0.94
2.06
1.85
2.23
0.52
1.06

1.08
0.93
0.73
0.64
0.52
1.73
0.85
1.38
1.14
1.43
0.91
1.06

1.07
1.05
0.35
0.18
0.69
1.42
0.43
1.61
1.84
1.48
0.80
1.02

Percent of Loans Noncurrent**
All real estate loans ................................................
Construction and development ...........................
Nonfarm nonresidential .......................................
Multifamily residential real estate ........................
Home equity loans ..............................................
Other 1-4 family residential .................................
Commercial and industrial loans ............................
Loans to individuals ...............................................
Credit card loans .................................................
Other loans to individuals ....................................
All other loans and leases (including farm) ............
Total loans and leases ...........................................

0.89
0.95
0.62
0.60
0.44
1.13
0.62
1.17
1.93
0.71
0.23
0.83

0.99
1.19
1.07
1.08
0.39
0.96
1.32
0.87
0.91
0.87
0.76
1.00

0.79
1.12
0.74
0.63
0.39
0.73
1.00
0.62
2.13
0.47
0.55
0.80

0.76
0.96
0.62
0.88
0.46
0.81
0.80
0.65
1.36
0.37
0.39
0.75

0.94
0.86
0.53
0.49
0.44
1.23
0.53
1.25
1.97
0.77
0.18
0.85

0.73
1.48
0.72
0.24
0.36
0.71
0.97
1.66
2.26
0.63
0.12
0.91

0.56
0.68
0.39
0.43
0.41
0.63
0.40
0.63
1.69
0.48
0.14
0.51

1.24
1.31
0.95
1.73
0.48
1.68
0.64
0.76
1.65
0.48
0.26
0.97

1.69
1.13
0.69
0.39
0.52
3.41
0.81
1.16
1.52
0.85
0.28
1.31

0.91
0.68
0.61
1.23
0.23
1.54
0.77
0.48
0.93
0.39
0.70
0.84

0.84
0.82
0.40
0.40
0.47
1.01
0.49
1.46
1.79
1.26
0.27
0.83

Percent of Loans Charged-off (net, YTD)
All real estate loans ................................................
Construction and development ...........................
Nonfarm nonresidential .......................................
Multifamily residential real estate ........................
Home equity loans ..............................................
Other 1-4 family residential .................................
Commercial and industrial loans ............................
Loans to individuals ...............................................
Credit card loans .................................................
Other loans to individuals ....................................
All other loans and leases (including farm) ............
Total loans and leases ...........................................

0.10
0.07
0.04
0.02
0.24
0.10
0.35
2.43
4.07
1.38
0.12
0.45

0.06
0.11
0.05
0.03
0.06
0.08
0.43
0.44
3.93
0.37
0.03
0.14

0.04
0.06
0.03
0.05
0.07
0.05
0.29
0.94
5.56
0.46
0.18
0.13

0.05
0.08
0.00
0.06
0.19
0.06
0.38
1.82
3.02
1.35
0.27
0.25

0.12
0.08
0.06
0.01
0.26
0.12
0.35
2.60
4.11
1.50
0.11
0.55

0.05
0.09
0.03
0.00
0.13
0.05
0.65
3.30
4.28
1.53
0.12
0.81

0.06
0.07
0.03
-0.05
0.17
0.05
0.23
1.31
4.15
0.83
0.21
0.22

0.19
0.11
0.10
0.16
0.29
0.24
0.21
1.30
3.27
0.65
0.13
0.31

0.12
0.08
-0.01
0.00
0.36
0.12
0.75
2.77
4.09
1.52
0.04
0.62

0.07
0.08
0.04
0.01
0.21
0.06
0.21
1.01
2.65
0.68
0.29
0.19

0.10
0.01
0.00
0.01
0.27
0.12
0.32
3.21
4.12
2.65
0.03
0.55

Loans Outstanding (in billions)
All real estate loans ................................................
Construction and development ...........................
Nonfarm nonresidential .......................................
Multifamily residential real estate ........................
Home equity loans ..............................................
Other 1-4 family residential .................................
Commercial and industrial loans ............................
Loans to individuals ...............................................
Credit card loans .................................................
Other loans to individuals ....................................
All other loans and leases (including farm) ............
Total loans and leases ...........................................

$4,536.0
582.1
921.2
192.0
556.7
2,169.3
1,250.2
945.4
354.2
591.2
547.8
7,279.3

$79.3
10.7
22.1
1.8
2.6
32.6
17.3
9.5
0.2
9.3
12.4
118.5

$696.5
140.5
237.1
27.1
33.1
233.4
119.2
50.8
4.7
46.1
33.5
899.9

$720.6
154.0
221.3
40.9
44.3
247.9
145.0
75.2
21.4
53.8
33.2
973.9

$3,039.7
276.9
440.7
122.2
476.7
1,655.4
968.7
809.9
328.0
482.0
468.7
5,287.0

$756.1
61.1
174.6
50.0
53.1
413.5
178.3
253.7
159.6
94.1
80.3
1,268.3

$1,237.4
190.6
243.2
22.8
175.6
587.5
293.2
168.2
21.2
147.1
131.0
1,829.9

$870.5
119.8
195.4
30.6
152.1
356.4
329.3
168.2
40.7
127.5
139.4
1,507.3

$356.1
47.1
82.8
8.7
71.5
128.8
105.5
92.4
43.1
49.3
69.6
623.5

$280.5
74.0
85.6
6.3
19.0
86.4
73.0
40.2
6.6
33.6
16.6
410.3

$1,035.4
89.6
139.7
73.5
85.5
596.7
270.9
222.7
83.0
139.7
110.9
1,640.0

Memo: Other Real Estate Owned (in millions)
All other real estate owned ....................................
Construction and development ...........................
Nonfarm nonresidential .......................................
Multifamily residential real estate ........................
1-4 family residential ...........................................
Farmland .............................................................

6,961.1
688.1
1,188.3
367.6
3,590.8
66.8

267.5
34.9
100.9
8.8
111.2
11.8

1,472.4
337.6
548.9
46.6
497.3
36.0

834.6
192.9
227.3
37.2
358.7
15.8

4,386.6
122.8
311.2
275.0
2,623.6
3.2

506.3
41.9
108.5
4.5
334.3
5.2

1,390.5
224.6
278.4
251.0
607.7
3.0

2,003.9
114.6
293.6
61.3
1,035.4
5.7

1,129.7
108.9
177.0
16.0
429.7
15.6

760.8
170.6
270.0
25.5
236.7
35.0

1,169.7
27.5
60.8
9.4
946.9
2.2

* See Table IV-A (page 9) for explanations.
** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.

FDIC QUARTERLY

11

2007, VOLUME 1, NO. 1

TABLE VI-A. Derivatives, All FDIC-Insured Commercial Banks and State-Chartered Savings Banks
(dollar figures in millions;
notional amounts unless otherwise indicated)

1st Quarter
2007

4th Quarter
2006

3rd Quarter
2006

2nd Quarter
2006

1st Quarter
2006

Asset Size Distribution
$1 Billion
$100 Million
to
to
$10 Billion
$1 Billion

Greater
than
$10 Billion

%Change
06:1-07:1

Less than
$100 Million

ALL DERIVATIVE HOLDERS
Number of institutions reporting derivatives ………………………....
1,050
1,014
1,013
992
981
Total assets of institutions reporting derivatives ……………………. $8,861,789 $8,832,645 $8,409,669 $8,276,558 $8,025,662
Total deposits of institutions reporting derivatives ………………….
5,742,345
5,749,612
5,429,994
5,403,746
5,251,640
Total derivatives ………………………………………………………... 146,084,457 132,181,371 127,106,508 120,205,407 111,086,862

7.0
10.4
9.3
31.5

74
$5,142
4,130
135

639
$273,101
218,248
16,649

252
85
$784,998 $7,798,548
575,849
4,944,117
94,115 145,973,557

Derivative Contracts by Underlying Risk Exposure
Interest rate ……………………………………………..……………… 118,592,547 107,433,612 103,198,718 98,738,848 92,291,252
Foreign exchange* …………………………………………………….. 14,167,866 12,564,207 12,226,835 12,256,709 11,248,488
Equity …………………………………………………………………….
2,317,685
2,270,942
2,218,658
1,902,399
1,420,814
Commodity & other (excluding credit derivatives) …………………..
840,594
893,310
1,558,264
738,026
653,859
Credit ………………………………………………..…………………... 10,165,765
9,019,299
7,904,034
6,569,425
5,472,449
Total ………………………………………………..……………………. 146,084,457 132,181,371 127,106,508 120,205,407 111,086,862

28.5
26.0
63.1
28.6
85.8
31.5

119
0
15
0
0
135

16,248
133
236
3
29
16,649

88,600 118,487,580
3,850 14,163,883
1,006
2,316,427
336
840,254
323 10,165,413
94,115 145,973,557

Derivative Contracts by Transaction Type
Swaps ………………………………………………..………………….. 88,006,829 81,339,522 77,555,615 74,448,925 68,849,645
Futures & forwards ………………………………………………..….... 15,307,229 14,881,672 14,482,742 13,788,776 13,044,998
Purchased options ………………………………………………..……. 15,737,388 12,944,822 13,301,414 12,367,870 11,579,154
Written options ………………………………………………..………... 15,587,925 13,332,188 12,945,812 12,081,029 11,202,378
Total ………………………………………………..……………………. 134,639,371 122,498,203 118,285,583 112,686,600 104,676,175

27.8
17.3
35.9
39.1
28.6

21
45
16
53
135

6,669
2,311
5,278
2,266
16,524

65,910 87,934,230
13,883 15,290,991
7,620 15,724,473
5,786 15,579,821
93,198 134,529,514

Fair Value of Derivative Contracts
Interest rate contracts ……………………………………………….....
Foreign exchange contracts …………………………………………..
Equity contracts ………………………………………………..……….
Commodity & other (excluding credit derivatives) …………………..
Credit derivatives as guarantor ……………………………………….
Credit derivatives as beneficiary ……………………………………...

24,440
74,087
-18,823
22,532
9,033
-9,677

23,299
5,324
-17,845
2,658
31,583
-32,745

22,719
4,144
-13,526
2,562
14,671
-14,819

21,194
4,641
-9,364
2,806
7,311
-8,992

20,308
4,012
-10,632
2,769
10,228
-9,223

20.3
NM
77.0
713.7
-11.7
4.9

0
0
1
0
0
0

-1
0
9
0
0
0

7
-25
53
2
0
0

24,434
74,113
-18,885
22,530
9,033
-9,677

Derivative Contracts by Maturity**
Interest rate contracts ……………………………………. < 1 year
………………………. 1-5 years
………………………. > 5 years
Foreign exchange contracts ……………………..….….. < 1 year
………………………. 1-5 years
………………………. > 5 years
Equity contracts …………………………………………... < 1 year
………………………. 1-5 years
………………………. > 5 years
Commodity & other contracts …………………………… < 1 year
………………………. 1-5 years
………………………. > 5 years

33,255,881
33,802,007
24,684,519
8,372,499
1,571,245
624,415
397,234
236,576
74,332
271,647
200,533
23,955

29,551,704
31,385,572
23,273,615
7,690,210
1,415,846
592,897
341,346
220,856
44,858
235,107
272,314
21,581

26,615,326
30,872,307
22,518,236
6,687,566
1,573,062
767,427
333,262
296,151
53,988
496,634
274,378
14,486

22,679,708
31,161,579
22,835,007
7,473,995
1,240,609
518,618
334,732
219,638
44,457
230,213
177,869
10,426

20,701,316
29,322,655
21,145,459
6,279,115
1,455,181
721,164
288,762
200,405
34,279
214,997
149,315
7,324

60.6
15.3
16.7
33.3
8.0
-13.4
37.6
18.0
116.8
26.3
34.3
227.1

41
3
17
0
0
0
1
7
0
0
0
0

3,054
7,807
2,791
20
9
7
17
89
0
0
3
0

23,763
26,548
30,628
2,652
27
10
189
422
43
192
120
24

33,229,023
33,767,649
24,651,083
8,369,828
1,571,210
624,398
397,026
236,058
74,290
271,454
200,410
23,931

Risk-Based Capital: Credit Equivalent Amount
Total current exposure to tier 1 capital (%) ………………………….
Total potential future exposure to tier 1 capital (%) ………………...
Total exposure (credit equivalent amount) to tier 1 capital (%) …...

22.2
113.1
135.3

29.2
97.7
126.9

28.6
99.0
127.6

33.6
90.2
123.8

0.3
0.2
0.5

0.3
0.3
0.6

1.5
1.0
2.4

25.8
132.4
158.2

Credit losses on derivatives*** ………………………………..……

-2.9

-25.1

-19.3

-3.3

3.6

NM

0.0

0.6

0.2

-3.7

HELD FOR TRADING
Number of institutions reporting derivatives ………………………....
Total assets of institutions reporting derivatives …………………….
Total deposits of institutions reporting derivatives ………………….

151
7,381,546
4,765,635

147
7,223,466
4,712,044

147
6,927,469
4,435,577

149
6,808,697
4,399,031

148
6,585,433
4,260,458

2.0
12.1
11.9

5
354
280

40
17,015
13,846

50
228,498
157,985

56
7,135,678
4,593,523

Derivative Contracts by Underlying Risk Exposure
Interest rate ………………………………………………..……………. 115,845,677 104,691,811 100,299,894 96,221,190 89,810,085
Foreign exchange ………………………………………………..…….. 12,769,140 11,788,411 11,207,259 11,206,773 10,214,072
Equity ………………………………………………..…………………..
2,313,326
2,266,778
2,214,881
1,898,493
1,416,918
Commodity & other ………………………………………………..…...
840,345
893,087
1,558,095
737,910
649,704
Total ………………………………………………..……………………. 131,768,488 119,640,087 115,280,129 110,064,365 102,090,779

29.0
25.0
63.3
29.3
29.1

7
0
0
0
7

200
15
5
0
220

93.6
-20.8
-3.8
-44.1
8.4

0
0
0
0
0

0
0
0
0
0

13
7
0
0
21

2,391
1,824
1,732
175
6,122

0.0
0.0

-0.1
-0.4

0.4
3.3

4.4
29.7

67
4,631
3,735

595
253,250
201,980

224
694,953
512,881

81
7,679,227
4,859,646

Trading Revenues: Cash & Derivative Instruments
Interest rate ………………………………………………..…………….
Foreign exchange ………………………………………………..……..
Equity ………………………………………………..…………………...
Commodity & other (including credit derivatives) …………………...
Total trading revenues ………………………………………………....

2,404
1,831
1,732
175
6,142

1,146
1,613
1,214
-111
3,861

546
1,355
1,827
789
4,517

1,665
2,672
100
272
4,710

Share of Revenue
Trading revenues to gross revenues (%) …………………………….
Trading revenues to net operating revenues (%) ……………………

4.3
28.9

2.9
19.6

3.4
20.7

3.6
21.6

HELD FOR PURPOSES OTHER THAN TRADING
Number of institutions reporting derivatives ………………………....
Total assets of institutions reporting derivatives …………………….
Total deposits of institutions reporting derivatives ………………….

967
8,632,061
5,578,243

935
8,603,028
5,588,316

933
8,224,981
5,304,128

920
8,123,920
5,299,416

32.8 Blank
87.7 Blank
120.5 Blank

1,242
2,311
1,801
313
5,666

4.6 Blank
26.8 Blank

905
7,863,162
5,138,716

6.9
9.8
8.6

36,174 115,809,296
2,998 12,766,127
427
2,312,894
301
840,045
39,899 131,728,362

Derivative Contracts by Underlying Risk Exposure
Interest rate ………………………………………………..…………….
2,746,870
2,741,801
2,898,823
2,517,658
2,481,166
10.7
112
16,048
52,426
2,678,284
Foreign exchange ………………………………………………..……..
119,405
111,928
102,685
100,555
96,178
24.2
0
21
259
119,126
Equity ………………………………………………..…………………..
4,359
4,164
3,777
3,906
3,896
11.9
15
231
579
3,533
Commodity & other ………………………………………………..…...
249
223
169
116
4,155
-94.0
0
3
36
210
Total notional amount ……………………………………………….....
2,870,882
2,858,117
3,005,455
2,622,234
2,585,396
11.0
128
16,303
53,299
2,801,152
All line items are reported on a quarterly basis.
NM - Not Meaningful
*Include spot foreign exchange contracts. All other references to foreign exchange contracts in which notional values or fair values are reported exclude spot foreign exchange contracts.
** Derivative contracts subject to the risk-based capital requirements for derivatives.
*** The reporting of credit losses on derivatives is applicable to all banks filing the FFIEC 031 report form and to those banks filing the FFIEC 041 report form that have $300 million or in more total assets.

FDIC QUARTERLY

12

2007, VOLUME 1, NO. 1

Quarterly Banking Profile
TABLE VII-A. Servicing, Securitization, and Asset Sales Activities (All FDIC-Insured Commercial Banks and State-Chartered Savings Banks)
(dollar figures in millions)

1st Quarter
2007

4th
Quarter
2006

3rd
Quarter
2006

Asset Size Distribution
$100 Million
$1 Billion
2nd
to
to
Quarter 1st Quarter %Change Less than
$10 Billion
2006
2006
06:1-07:1 $100 Million $1 Billion

Greater
than
$10 Billion

Assets Securitized and Sold with Servicing Retained or with Recourse
or Other Seller-Provided Credit Enhancements
Number of institutions reporting securitization activities ……………………………………………
127
121
119
120
Outstanding Principal Balance by Asset Type
$1,079,891 $738,996 $453,900 $417,800
1-4 family residential loans ……………………………………………………………………………
Home equity loans …………………………………………………………………….……..………
9,339
8,905
9,257
9,632
Credit card receivables ………………………………………………………………………..…….
367,796
362,467
422,983
403,434
16,781
16,665
Auto loans ………………………………………………………………………………….....………
14,132
16,263
Other consumer loans ………………………………………………………………………………… 27,737
28,673
25,753
24,414
12,039
10,543
8,404
10,582
Commercial and industrial loans ……………………………………………………………………
144,939
136,330
121,506
All other loans, leases, and other assets* …………………………………………………………
150,404
Total securitized and sold ………………………………………………………………….…………. 1,661,338 1,310,787 1,073,407 1,004,034
Maximum Credit Exposure by Asset Type
1-4 family residential loans ……………………………………………………………………………
Home equity loans …………………………………………………………………………….......…
Credit card receivables …………………………………………………………………………..….
Auto loans ………………………………………………………………………………………………
Other consumer loans …………………………………………………………………...………….
Commercial and industrial loans ……………………………………………………………………
All other loans, leases, and other assets …………………………………………….……………
Total credit exposure ……………………………………………………………………………………
Total unused liquidity commitments provided to institution's own securitizations …………………
Securitized Loans, Leases, and Other Assets 30-89 Days Past Due (%)
1-4 family residential loans ……………………………………………………………………………
Home equity loans ………………………………………………………………….………..………
Credit card receivables ……………………………………………………………………..……….
Auto loans ………………………………………………………………………………………………
Other consumer loans …………………………………………………………………………....….
Commercial and industrial loans ……………………………………………………………………
All other loans, leases, and other assets ……………………………………………………………
Total loans, leases, and other assets …………………………………………………………………
Securitized Loans, Leases, and Other Assets 90 Days or More Past Due (%)
1-4 family residential loans ……………………………………………………………………………
Home equity loans ……………………………………………………………………..………….…
Credit card receivables ………………………………………………………………..…………….
Auto loans ………………………………………………………………………………………………
Other consumer loans ………………………………………………………....…………………….
Commercial and industrial loans ……………………………………………………………………
All other loans, leases, and other assets …………………………………….……………………
Total loans, leases, and other assets …………………………………………………………………
Securitized Loans, Leases, and Other Assets Charged-Off (net, YTD, annualized, %)
1-4 family residential loans ……………………………………………………………………………
Home equity loans ……………………………………………………………………………………
Credit card receivables ……………………………………………………………………..……….
Auto loans ………………………………………………………………………………………………
Other consumer loans ……………………………………………………………………....……….
Commercial and industrial loans ……………………………………………………………………
All other loans, leases, and other assets ……………………………………………….....………
Total loans, leases, and other assets ………………………………………………………..………
Seller's Interests in Institution's Own Securitizations - Carried as Loans
Home equity loans ………………………………………………………………………….…..……
Credit card receivables …………………………………………………………………………..….
Commercial and industrial loans ……………………………………………………………………
Seller's Interests in Institution's Own Securitizations - Carried as Securities
Home equity loans ……………………………………………………………………………………
Credit card receivables …………………………………………………………………………..….
Commercial and industrial loans ………………………………………………………..…….....…

116

9.5

17

46

21

43

$392,412
10,768
402,214
16,304
22,165
10,703
109,800
964,366

175.2
-13.3
-8.6
-13.3
25.1
12.5
37.0
72.3

$91
0
0
0
0
0
2
93

$148
0
6,279
0
8
31
93
6,559

$1,544
479
6,675
399
0
4,465
1,232
14,794

$1,078,108
8,860
354,842
13,733
27,730
7,542
149,077
1,639,893

45.1
-0.8
-23.8
-21.3
15.4
-33.0
35.4
-10.4
-43.7

1
0
0
0
0
0
1
2
4

2
0
440
0
0
0
25
468
0

17
21
168
16
0
82
51
356
0

6,017
2,347
17,077
612
1,861
229
974
29,116
6,116

6,037
2,368
17,685
628
1,861
311
1,052
29,942
6,119

6,627
2,332
19,182
724
1,882
348
997
32,093
6,872

4,619
2,358
25,084
813
1,653
407
761
35,695
7,323

4,336
2,358
24,495
806
1,619
455
727
34,796
9,359

4,160
2,387
23,214
798
1,612
464
777
33,411
10,867

2.11
0.70
1.91
1.45
2.42
0.66
0.15
1.87

3.03
0.74
1.98
1.69
3.02
0.71
0.21
2.38

2.45
0.72
2.04
1.31
3.03
1.17
0.23
1.98

2.07
0.58
1.92
1.14
2.62
1.23
0.13
1.75

1.75
0.49
2.01
1.06
2.54
1.22
0.11
1.66

Blank
Blank
Blank
Blank
Blank
Blank
Blank
Blank

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.06
0.00
2.36
0.00
0.00
0.00
0.00
2.26

0.80
1.63
0.71
0.72
0.00
1.52
0.15
0.95

2.11
0.65
1.93
1.47
2.42
0.16
0.15
1.88

1.08
0.35
1.78
0.16
2.03
0.55
0.14
1.15

1.17
0.50
1.72
0.26
2.11
0.66
0.18
1.21

0.90
0.31
1.60
0.18
2.13
0.76
0.20
1.10

1.13
0.31
1.61
0.16
2.14
0.88
0.15
1.20

1.07
0.30
1.61
0.17
2.13
0.94
0.14
1.19

Blank
Blank
Blank
Blank
Blank
Blank
Blank
Blank

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
1.69
0.00
0.00
0.00
0.00
1.62

0.33
1.01
0.59
0.10
0.00
1.22
0.08
0.71

1.08
0.32
1.80
0.16
2.03
0.16
0.14
1.15

0.01
0.21
1.12
0.26
0.38
0.36
0.01
0.27

0.04
0.25
3.80
0.68
1.49
1.33
-0.01
1.13

0.05
0.19
2.86
0.45
1.20
1.17
-0.01
1.19

0.03
0.12
1.90
0.27
0.71
0.82
0.00
0.81

0.02
0.06
0.89
0.23
0.45
0.44
0.00
0.40

Blank
Blank
Blank
Blank
Blank
Blank
Blank
Blank

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
1.19
0.00
0.00
0.00
0.00
1.14

0.01
3.24
0.53
0.10
0.00
0.99
0.02
0.65

0.01
0.05
1.13
0.26
0.38
-0.01
0.01
0.26

671
61,569
2,863

869
75,225
2,596

728
68,885
2,891

650
82,533
3,284

586
72,954
2,523

14.5
-15.6
13.5

0
0
0

0
335
0

8
4,405
961

663
56,829
1,902

10
281
1

10
322
5

11
184
0

12
137
0

12
72
0

-16.7
290.3
0.0

0
0
0

0
35
0

0
246
0

10
0
1

Assets Sold with Recourse and Not Securitized
Number of institutions reporting asset sales ……………………………………………………...…
Outstanding Principal Balance by Asset Type
1-4 family residential loans ……………………………………………………………………………
Home equity, credit card receivables, auto, and other consumer loans ………………..…...…
Commercial and industrial loans ……………………………………………………..…….....……
All other loans, leases, and other assets ……………………………………………………………
Total sold and not securitized …………………………………………………………………………

726

715

708

698

691

5.1

168

421

94

43

56,074
1,904
8,198
8,103
74,278

56,102
708
6,668
6,981
70,458

56,002
115
6,781
7,403
70,302

54,319
124
6,184
12,998
73,625

53,866
902
6,112
16,607
77,487

4.1
111.1
34.1
-51.2
-4.1

940
2
16
2
960

6,552
28
87
47
6,714

2,294
12
324
195
2,825

46,289
1,862
7,770
7,859
63,779

Maximum Credit Exposure by Asset Type
1-4 family residential loans ……………………………………………………………………………
Home equity, credit card receivables, auto, and other consumer loans …………………………
Commercial and industrial loans ……………………………………….....………………..………
All other loans, leases, and other assets ………………………………………………….....……
Total credit exposure ………………………………………………………………………………..…

14,185
1,868
4,543
2,428
23,024

13,537
663
4,499
2,530
21,229

13,698
47
4,479
2,502
20,726

12,167
64
4,272
2,161
18,663

11,987
485
4,132
2,678
19,281

18.3
285.2
9.9
-9.3
19.4

60
2
16
2
81

1,373
7
56
16
1,453

1,490
6
324
92
1,913

11,262
1,852
4,146
2,317
19,577

Number of institutions reporting securitization facilities sponsored by others ……………………
Total credit exposure ……………………………………………………………………………………

47
1,348

47
1,135

48
958

46
853

45
897

4.4
50.3

22
6

14
122

3
69

8
1,150

Total unused liquidity commitments ………………………………………………………................

5,827

6,257

5,066

4,251

4,651

25.3

0

0

0

5,827

7,388

69,259

91,471

3,326,473

2
0
46
0
0.4

83
0
172
211
1.6

1
0
134
156
1.8

21,318
327,395
3,249
4,684
7.5

Support for Securitization Facilities Sponsored by Other Institutions

Other
32.0
Assets serviced for others** …………………………………………………………………………… 3,494,590 3,392,152 3,072,169 2,836,997 2,647,319
Asset-backed commercial paper conduits
Credit exposure to conduits sponsored by institutions and others ………………………………
21,404
20,714
19,244
19,293
17,503
22.3
306,435
294,329
286,363
288,086
13.6
Unused liquidity commitments to conduits sponsored by institutions and others ……………… 327,395
Net servicing income (for the quarter) …………………………………………………………………
3,600
2,161
3,381
4,262
4,693
-23.3
Net securitization income (for the quarter) ………………………………………………….............
5,051
2,407
6,832
6,225
6,705
-24.7
5.7
5.8
6.1
5.9
6.0 Blank
Total credit exposure to Tier 1 capital (%)*** …………………………………………………………
*Line item titled "All other loans and all leases" for quarters prior to March 31, 2006.
**The amount of financial assets serviced for others, other than closed-end 1-4 family residential mortgages, is reported when these assets are greater than $10 million
***Total credit exposure includes the sum of the three line items titled "Total credit exposure" reported above.

FDIC QUARTERLY

13

2007, VOLUME 1, NO. 1

Insurance Fund Indicators
I
I
I
I

Insured Deposits Grow by 2.0 Percent, Up from the Prior Quarter’s
1.3 Percent Growth Rate
DIF Reserve Ratio Declines 1 Basis Point to 1.20 Percent
Risk-based Assessment Changes Became Effective January 1, 2007
One Institution Fails During First Quarter

Total assets of the nation’s 8,650 FDIC-insured commercial banks and savings institutions increased by
$120.8 billion (1.0 percent) during the first quarter of
2007. Fifty-eight percent of the quarter’s asset growth
was funded by deposits, as interest-bearing deposits
increased by 1.8 percent ($115.5 billion), while noninterest-bearing deposits decreased by 3.6 percent ($45.5
billion). Domestic office deposits increased by 1.0 percent ($63.4 billion), and foreign office deposits
increased by 0.6 percent ($6.6 billion).

On February 2, 2007, the FDIC had its first institution
failure since June of 2004, ending ten consecutive quarters without a failure, the longest time span on record.

Changes to Risk-Based Assessments from the
Reform Legislation
On February 8, 2006, the President signed the Federal
Deposit Insurance Reform Act of 2005 (the Reform
Act) into law. The Federal Deposit Insurance Reform
Conforming Amendments Act of 2005 was signed into
law on February 15, 2006 and contains necessary technical and conforming changes to implement deposit
insurance requirements. All final rules implementing
changes to risk-based assessments were adopted by the
FDIC Board by early November of 2006, and generally
became effective January 1, 2007.

Estimated insured deposits rose by 2.0 percent ($84 billion) during the first three months of 2007, after a 6.7
percent rise for all of 2006. The first-quarter increase
was up from the previous quarter’s 1.3 percent growth
rate. For institutions existing as of December 31, 2006
and March 31, 2007, insured deposits increased during
the first quarter at 6,151 institutions (71 percent),
decreased at 2,409 institutions (28 percent), and
remained unchanged at 49 institutions.

New Risk Categories and Assessment Rate Schedule

The Deposit Insurance Fund (DIF) increased by 1.2
percent ($580 million) during the first quarter to
$50,745 million (unaudited). Accrued assessment
income added $94 million to the DIF during the quarter. This amount was determined by subtracting $820
million in estimated credits used from $914 million in
gross assessment revenue. Approximately 83 percent of
all FDIC-insured institutions have credits to offset
either some or all of their first quarter assessments. The
DIF increased $81 million from unrealized gains on
available-for-sale securities, $73 million from a decrease
in provisions for insurance losses, and $332 million (net
of expenses) from interest on securities and other revenue.

The previous nine risk categories (the risk-based assessment matrix) are consolidated into four categories to
better align them with their respective historical failure
and loss experience. Capital ratios and supervisory ratings will continue to distinguish one risk category from
another. The following table shows the translation of
the old nine-cell matrix to the new risk categories as
well as the initial assessment rates (in basis points) for
each new risk category. In this table, Supervisory
Group A generally includes institutions with CAMELS
composite ratings of 1 or 2; Supervisory Group B generally includes institutions with a CAMELS composite
rating of 3; and Supervisory Group C generally includes
institutions with CAMELS composite ratings of 4 or 5.

The DIF’s growth was not enough to offset the increase
in insured deposits, and the reserve ratio decreased from
1.21 percent on December 31, 2006 to 1.20 percent on
March 31, 2007. Since the beginning of 2006, the DIF
reserve ratio has dropped five basis points, from 1.25
percent to 1.20 percent.

FDIC QUARTERLY

These initial assessment rates are effective beginning
January 1, 2007 and are 3 basis points above the base
rate schedule adopted in the final rule. The FDIC may
adjust rates up or down by 3 basis points from the base
rate schedule without notice and comment, provided

14

2007, VOLUME 1, NO. 1

Quarterly Banking Profile
risk-based rate for a quarterly assessment period near
the end of the quarter following the assessment period.
Payment will generally be due on the 30th day of the
last month of the quarter following the assessment period.

Risk Categories and Assessment Rate Schedule
Effective January 1, 2007
Supervisory Group

Capital Category
1. Well Capitalized
2. Adequately Capitalized
3. Undercapitalized

A

B

I
5-7 bps

C

II
10 bps

III
28 bps

III
28 bps

Supervisory rating changes will be effective for assessment purposes as of the examination transmittal date.
For institutions with long-term debt issuer ratings,
changes in ratings will be effective for assessment purposes as of the date the change was announced.

IV
43 bps

The assessment base will be based on the average daily
deposits for banks with $1 billion or more in assets,
effective no later than March 31, 2008. Until then,
any existing institution may choose whether to have its
assessment base determined from quarter-end or average
daily deposits. Thereafter, an institution with less than
$1 billion in assets may continue to choose to have its
assessment base determined from quarter-end or average
daily deposits. However, once an institution elects to
report average daily deposits, it must continue to do so
thereafter. The standard float deduction that had been
used to determine the assessment base has been eliminated effective the first quarter of 2007.

that any single adjustment from one quarter to the next
cannot move rates more than 3 basis points.

Determining Risk-Based Assessment Rates for Institutions in
Risk Category I
The spread between the lowest and highest risk-based
assessment rates in Risk Category I is 2 basis points.
For most institutions in Risk Category I – all but
insured branches of foreign banks and institutions that
have at least $10 billion in assets and a long-term debt
issuer rating – the assessment rate assigned will be
based on a combination of financial ratios and
CAMELS component ratings. Rates determined from
these risk measures were derived from a model that
relates them to the historical frequency of CAMELS
downgrades to ‘3’ or worse in the succeeding year.

Assessment Credits
Congress awarded an aggregate assessment credit of
$4.7 billion that has been distributed among all eligible
insured depository institutions. An eligible insured
depository institution is one that was in existence on
December 31, 1996 and that paid assessments before
that date (or is the successor to such an institution).
Each institution’s credit amount was based on the ratio
of the institution’s assessment base (plus its predecessors’ assessment bases, if any) on December 31, 1996 to
the combined total of all eligible insured depository
institution assessment bases. The FDIC will apply
whatever credits an institution has available to its quarterly assessment, subject to certain statutory limitations.
Credits do not expire.

For large institutions (generally those with at least $10
billion in assets) that have long-term debt issuer ratings, assessment rates will be determined by weighting
CAMELS component ratings 50 percent and long-term
debt issuer ratings 50 percent. For all large Risk Category I institutions, additional risk factors will be considered to determine whether assessment rates should be
adjusted. This additional information includes market
data, financial performance measures, considerations of
the ability of an institution to withstand financial
stress, and loss severity indicators. Any adjustment will
be limited to no more than ½ basis point.

Authors: Kevin Brown
Authors: Sr. Financial Analyst
Authors: (202) 898-6817

Operational Changes to the Assessment System

Authors: Brian Lewis
Authors: Sr. Financial Analyst
Authors: (202 898-6510

Insured depository institutions will no longer be
assigned a risk-based assessment for a semiannual period
before the start of the semiannual period. Instead,
beginning in 2007, each institution will be assigned a

FDIC QUARTERLY

Authors: Division of Insurance and Research, FDIC

15

2007, VOLUME 1, NO. 1

TABLE I-B. Insurance Fund Balances and Selected Indicators
(dollar figures in millions)

Deposit Insurance Fund
1st Quarter
2007

Beginning Fund Balance*……………………………………

4th Quarter
2006

$50,165

Changes in Fund Balance:
Assessments earned……………………………………………
Interest earned on investment securities……………………
Operating expenses……………………..…………………….
Provision for insurance losses…………………………………
All other income, net of expenses**……………………………
Unrealized gain/(loss) on available-for-sale
securities……………………………………….....………….
Total fund balance change……………………………………

3rd Quarter
2006

$49,992

2nd Quarter
2006

$49,564

1st Quarter
2006

$49,193

4th Quarter
2005

$48,597

3rd Quarter
2005

$48,373

2nd Quarter
2005

$48,023

$47,617

94

10

10

7

5

13

20

14

567

476

622

665

478

675

536

657

239

248

237

242

224

252

227

254

-73

49

-50

-6

-45

-19

-65

-57

4

5

1

12

349

4

3

4

81

-21

-18

-77

-57

-235

-47

-72

580

173

428

371

596

224

350

406

Ending Fund Balance*…………………………………………
Percent change from four quarters earlier…………………

50,745

50,165

49,992

49,564

49,193

48,597

48,373

48,023

3.15

3.23

3.35

3.21

3.31

2.29

2.94

3.23

Reserve Ratio (%)………………………………………………

1.20

1.21

1.22

1.23

1.23

1.25

1.26

1.28

Estimated Insured Deposits …………………………………
Percent change from four quarters earlier…………………

4,237,269

4,152,909

4,099,424

4,040,211

4,001,921

3,890,874

3,830,898

3,757,728

5.88

6.73

7.01

7.52

8.50

7.42

7.62

6.40

Assessment Base
Percent change from four quarters earlier…………………

6,803,266

6,595,293

6,439,293

6,386,880

6,272,524

6,177,373

6,038,813

5,878,968

8.46

6.77

6.63

8.64

8.15

8.87

9.47

8.36

Number of institutions reporting……………………………

8,662

8,693

8,755

8,790

8,803

8,845

8,870

8,881

Deposit Insurance Fund Balance and
Insured Deposits*
($Millions)

DIF Reserve Ratio*
Percent of Insured Deposits
1.36

1.34

6/03

3/04

1.23 1.23

1.24

1.22

1.20

1.12

6/03

12/03

6/04

12/04

6/05

12/05

6/06

47,617

3,688,562

48,023

3,757,728

48,373

3,830,898

48,597

3,890,874

49,193

4,001,921

49,564

4,040,211

49,992

4,099,424

50,165

4,152,909

3/07

12/06

3,622,068

6/05

1.16

3,559,489

47,507

3/05

1.20

46,990

12/04

1.21

3,531,806

9/04

1.25

3,499,469

46,521

12/06

1.26

46,558

6/04

1.28

3,452,503

9/06

1.28

3,414,317

46,022

6/06

1.29

3,438,360

45,648

12/03

1.31

44,883

9/03

3/06

1.32 1.32

DIF-Insured
Deposits

12/05

1.32 1.31

DIF Balance

9/05

1.33 1.33

50,745

4,237,269

TABLE II-B. Problem Institutions and Failed/Assisted Institutions
(dollar figures in millions)
Problem Institutions
Number of institutions…………......................……………………………...
Total assets…………..........................………………………………………

2007***

Failed/Assisted Institutions
Number of institutions….........................……………………………………
Total assets……………..........................……………………………………

2006***

2006

2005

2004

2003

2002

53

48

50

52

80

116

136

$21,445

$5,416

$8,265

$6,607

$28,250

$29,917

$38,927

$166

$1,097

$2,558

1

0

0

0

$15

$0

$0

$0

1

* Prior to 2006, amounts represent sum of separate BIF and SAIF amounts.
** First Quarter 2006 includes previously escrowed revenue from SAIF-member exit fees.
*** Through March 31.

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Quarterly Banking Profile
TABLE III-B. Estimated FDIC-Insured Deposits by Type of Institution
(dollar figures in millions)
March 31, 2007

Number of
Institutions

Total
Assets

Domestic
Deposits*

Est. Insured
Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks ………...…
FDIC-Supervised ……………………………
OCC-Supervised ……………………………
Federal Reserve-Supervised ………………

7,380
4,783
1,705
892

10,133,829
1,882,524
6,848,249
1,403,056

5,522,318
1,411,780
3,281,580
828,958

3,325,503
946,052
1,871,203
508,249

FDIC-Insured Savings Institutions ……………
OTS-Supervised Savings Institutions ………
FDIC-Supervised State Savings Banks ……

1,270
837
433

1,847,339
1,543,349
303,991

1,172,174
955,830
216,344

906,291
738,426
167,864

Total Commercial Banks and
Savings Institutions ………………………...

8,650

11,981,168

6,694,491

4,231,794

Other FDIC-Insured Institutions
U.S. Branches of Foreign Banks ………….…

12

17,076

7,506

5,474

Total FDIC-Insured Institutions ……….........
8,662
11,998,244
*Excludes $1,201 billion in foreign office deposits, which are uninsured.

6,701,998

4,237,269

TABLE IV-B. Assessment Base Distribution and Rate Schedules
Table IV-B, which shows the distribution of institutions and assessment bases among risk categories, is not included in this edition of the Quarterly Banking Profile. As a result of final regulations implementing the Federal Deposit
Insurance Reform Act of 2005, insured depository institutions will no longer be assigned a risk-based assessment
rate for a semiannual period before the start of the semiannual period. Instead, beginning in 2007, each institution
will be assigned a risk-based rate for a quarterly assessment period near the end of the following quarter. The next
edition will present a revised Table IV-B, which will show the distribution of institutions and assessment bases
among the new risk categories adopted in the regulations for the quarter ending March 31, 2007.

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Notes To Users

Growth rates represent the percentage change over a 12-month period in totals for institutions in the base period to totals for institutions
in the current period.
All data are collected and presented based on the location of each
reporting institution's main office. Reported data may include assets
and liabilities located outside of the reporting institution’s home state.
In addition, institutions may relocate across state lines or change their
charters, resulting in an inter-regional or inter-industry migration,
e.g., institutions can move their home offices between regions, and
savings institutions can convert to commercial banks or commercial
banks may convert to savings institutions.

This publication contains financial data and other information for
depository institutions insured by the Federal Deposit Insurance Corporation (FDIC). These notes are an integral part of this publication
and provide information regarding the comparability of source data
and reporting differences over time.

Tables I-A through VIII-A.
The information presented in Tables I-A through V-A of the FDIC
Quarterly Banking Profile is aggregated for all FDIC-insured Institutions, both commercial banks and savings institutions. Tables VI-A
(Derivatives) and VII-A (Servicing, Securitization, and Asset Sales
Activities) aggregate information only for insured commercial banks
and state-chartered savings banks that file quarterly Call Reports.
Table VIII-A Trust Services aggregates Trust asset and income information collected annually from all FDIC-insured institutions. Some
tables are arrayed by groups of FDIC-insured institutions based on
predominant types of asset concentration, while other tables aggregate institutions by asset size and geographic region. Quarterly and
full-year data are provided for selected indicators, including aggregate
condition and income data, performance ratios, condition ratios and
structural changes, as well as past due, noncurrent and charge-off
information for loans outstanding and other assets.

ACCOUNTING CHANGES
FASB Statement No. 157 Fair Value Measurements issued in September 2006
and FASB Statement No. 159 The Fair Value Option for Financial Assets and
Financial Liabilities issued in February 2007 – both are effective in 2008
with early adoption permitted in 2007. FAS 157 defines a fair value
measurement framework, while FAS 159 allows banks to elect a fair
value option when assets are recognized on the balance sheet and to
report certain financial assets and liabilities at fair value with subsequent changes in fair value included in earnings. Existing eligible
items can be fair-valued as early as January 2007 under FAS 159, if
a bank adopts FAS 157.
FASB Statement 158 Employers’ Accounting for Defined Benefit Pension and
Other Postretirement Plans – issued in September 2006 requires a bank
to recognize in 2007 the funded status of its postretirement plans on
its balance sheet. An overfunded plan is recognized as an asset and
an underfunded plan is recognized as a liability. An adjustment is
made to equity as accumulated other comprehensive income
(AOCI) upon application of FAS 158 and AOCI is adjusted in subsequent periods as net periodic benefit costs are recognized in earnings.
FASB Statement No. 156 Accounting for Servicing of Financial Assets – issued
in March 2006 and effective in 2007, requires all separately recognized servicing assets and liabilities to be initially measured at fair
value and allows a bank the option to subsequently adjust that
value by periodic revaluation and recognition of earnings or by periodic amortization to earnings.
Purchased Impaired Loans and Debt Securities – Statement of Position 033, Accounting for Certain Loans or Debt Securities Acquired in a Transfer.
The SOP applies to loans and debt securities acquired in fiscal years
beginning after December 15, 2004. In general, this Statement of
Position applies to “purchased impaired loans and debt securities,” i.e.,
loans and debt securities that a bank has purchased, including those
acquired in a purchase business combination, when it is probable, at
the purchase date, that the bank will be unable to collect all contractually required payments receivable. Banks must follow Statement of
Position 03-3 for Call Report purposes. The SOP does not apply to
the loans that a bank has originated, prohibits “carrying over” or creation of valuation allowances in the initial accounting and any subsequent valuation allowances reflect only those losses incurred by the
investor after acquisition.
GNMA Buy-back Option – If an issuer of GNMA securities has the
option to buy back the loans that collateralize the GNMA securities,
when certain delinquency criteria are met, FASB Statement No. 140
requires that loans with this buy-back option must be brought back
on the issuer's books as assets. The rebooking of GNMA loans is
required regardless of whether the issuer intends to exercise the buyback option. The banking agencies clarified in May 2005 that all
GNMA loans that are rebooked because of delinquency should be
reported as past due according to their contractual terms.

Tables I-B through IV-B.
A separate set of tables (Tables I-B through IV-B) provides comparative quarterly data related to the Deposit Insurance Fund (DIF), problem institutions, failed/assisted institutions, estimated FDIC-insured
deposits, as well as assessment rate information. Depository institutions that are not insured by the FDIC through the DIF are not
included in the FDIC Quarterly Banking Profile. U.S. branches of
institutions headquartered in foreign countries and non-deposit trust
companies are not included unless otherwise indicated. Efforts are
made to obtain financial reports for all active institutions. However,
in some cases, final financial reports are not available for institutions
that have closed or converted their charters.

DATA SOURCES
The financial information appearing in this publication is obtained
primarily from the Federal Financial Institutions Examination Council (FFIEC) Call Reports and the OTS Thrift Financial Reports submitted by all FDIC-insured depository institutions. This information is
stored on and retrieved from the FDIC’s Research Information System
(RIS) data base.

COMPUTATION METHODOLOGY
Certain adjustments are made to the OTS Thrift Financial Reports to
provide closer conformance with the reporting and accounting
requirements of the FFIEC Call Reports. Parent institutions are
required to file consolidated reports, while their subsidiary financial
institutions are still required to file separate reports. Data from subsidiary institution reports are included in the Quarterly Banking Profile
tables, which can lead to double-counting. No adjustments are made
for any double-counting of subsidiary data.
All asset and liability figures used in calculating performance ratios
represent average amounts for the period (beginning-of-period
amount plus end-of-period amount plus any interim periods, divided
by the total number of periods). For “pooling-of-interest” mergers, the
assets of the acquired institution(s) are included in average assets
since the year-to-date income includes the results of all merged institutions. No adjustments are made for “purchase accounting” mergers.

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Quarterly Banking Profile
FASB Interpretation No. 45 – In November 2002, the FASB issued Interpretation No. 45, Guarantor’s Accounting and Disclosure Requirements
for Guarantees, Including Indirect Guarantees of Indebtedness of Others.
This interpretation clarifies that a guarantor is required to recognize,
at the inception of a guarantee (financial standby letters of credit, performance standby letters of credit), a liability for the fair value of the
obligation undertaken in issuing the guarantee. Banks apply the initial recognition and measurement provisions of Interpretation No. 45
on a prospective basis to guarantees issued or modified after December
31, 2002, irrespective of the bank’s fiscal year end. A bank’s previous
accounting for guarantees issued prior to January 1, 2003, is not
revised.
FASB Interpretation No. 46 – The FASB issued Interpretation No. 46,
Consolidation of Variable Interest Entities, in January 2003 and revised it
in December 2003. Generally, banks with variable interests in variable interest entities created after December 31, 2003, must consolidate them. The timing of consolidation varies with certain situations
with application as late as 2005. The assets and liabilities of a consolidated variable interest entity are reported on a line-by-line basis
according to the asset and liability categories shown on the bank’s balance sheet, as well as related income items. Most small banks are
unlikely to have any “variable interests” in variable interest entities.

intended use of the derivative, its resulting designation, and the effectiveness of the hedge. Derivatives held for purposes other than trading are reported as “other assets” (positive fair values) or “other
liabilities” (negative fair values). For a fair value hedge, the gain or
loss is recognized in earnings and “effectively” offsets loss or gain on
the hedged item attributable to the risk being hedged. Any ineffectiveness of the hedge could result in a net gain or loss on the income
statement. Accumulated net gains (losses) on cash flow hedges are
recorded on the balance sheet as “accumulated other comprehensive
income” and the periodic change in the accumulated net gains (losses) for cash flow hedges is reflected directly in equity as the value of
the derivative changes. FASB Statement No. 149, Amendment of
Statement 133 on Derivative Instruments and Hedging Activities
provides guidance on the circumstances in which a loan commitment
must be accounted for as derivative. Under Statement No. 149, loan
commitments that relate to the origination of mortgage loans that will
be held for sale, commonly referred to as interest rate lock commitments, must be accounted for as derivatives on the balance sheet by
the issuer of the commitment.

DEFINITIONS (in alphabetical order)
All other assets – total cash, balances due from depository institutions,
premises, fixed assets, direct investments in real estate, investment in
unconsolidated subsidiaries, customers’ liability on acceptances outstanding, assets held in trading accounts, federal funds sold, securities
purchased with agreements to resell, fair market value of derivatives,
and other assets.
All other liabilities – bank's liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses,
fair market value of derivatives, and other liabilities.
Assets securitized and sold – total outstanding principal balance of
assets securitized and sold with servicing retained or other sellerprovided credit enhancements.
Construction and development loans – includes loans for all property
types under construction, as well as loans for land acquisition and
development.
Core capital – common equity capital plus noncumulative perpetual
preferred stock plus minority interest in consolidated subsidiaries, less
goodwill and other ineligible intangible assets. The amount of eligible
intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations.
Cost of funding earning assets – total interest expense paid on deposits
and other borrowed money as a percentage of average earning assets.
Credit enhancements – techniques whereby a company attempts to
reduce the credit risk of its obligations. Credit enhancement may be
provided by a third party (external credit enhancement) or by the
originator (internal credit enhancement), and more than one type of
enhancement may be associated with a given issuance.
Deposit Insurance Fund (DIF) – The Bank (BIF) and Savings Association (SAIF) Insurance Funds were merged in 2006 by the Federal
Deposit Insurance Reform Act to form the DIF.
Derivatives notional amount – The notional or contractual amounts of
derivatives represent the level of involvement in the types of derivatives transactions and are not a quantification of market risk or credit
risk. Notional amounts represent the amounts used to calculate contractual cash flows to be exchanged.
Derivatives credit equivalent amount – the fair value of the derivative
plus an additional amount for potential future credit exposure based

FASB Statement No. 123 (Revised 2004) and Share-Based Payments
– requires all entities to recognize compensation expense in an
amount equal to the fair value of share-based payments, e.g., stock
options and restricted stock, granted to employees. As of January 2006
all banks must adopt FAS 123(R). The compensation cost is typically
recognized over the vesting period with a corresponding credit to
equity. The recording of the compensation cost also gives rise to a
deferred tax asset.
Goodwill and intangible assets – FAS 141 terminates the use of pooling-of-interest accounting for business combinations after 2001 and
requires purchase accounting. Under FAS 142 amortization of goodwill is eliminated. Only intangible assets other than goodwill are
amortized each quarter. In addition companies are required to test for
impairment of both goodwill and other intangibles once each fiscal
year. The year 2002, the first fiscal year affected by this accounting
change, has been designated a transitional year and the amount of initial impairments are to be recorded as extraordinary losses on a “net of
tax” basis (and not as noninterest expense). Subsequent annual
review of intangibles and goodwill impairment may require additional
noninterest expense recognition. FASB Statement No. 147 clarifies
that acquisitions of financial institutions (except transactions between
two or more mutual enterprises), including branch acquisitions that
meet the definition of a business combination, should be accounted
for by the purchase method under FASB Statement No. 141. This
accounting standard includes transition provisions that apply to
unidentifiable intangible assets previously accounted for in accordance
with FASB Statement No. 72. If the transaction (such as a branch
acquisition) in which an unidentifiable intangible asset arose does not
meet the definition of a business combination, this intangible asset is
not be reported as “Goodwill” on the Call Report balance sheet.
Rather, this unidentifiable intangible asset is reported as “Other intangible assets,” and must continue to be amortized and the amortization
expense should be reported in the Call Report income statement.

FASB Statement No. 133 Accounting for Derivative Instruments and Hedging
Activities – All banks must recognize derivatives as either assets or liabilities on the balance sheet, measured at fair value. A derivative may
be specifically designated as a “fair value hedge,” a “cash flow hedge,”
or a hedge of a foreign currency exposure. The accounting for
changes in the value of a derivative (gains and losses) depends on the

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on the notional amount, the remaining maturity and type of the
contract.
Derivatives transaction types:
Futures and forward contracts – contracts in which the buyer agrees
to purchase and the seller agrees to sell, at a specified future date,
a specific quantity of an underlying variable or index at a specified price or yield. These contracts exist for a variety of variables
or indices, (traditional agricultural or physical commodities, as
well as currencies and interest rates). Futures contracts are standardized and are traded on organized exchanges which set limits
on counterparty credit exposure. Forward contracts do not have
standardized terms and are traded over the counter.
Option contracts – contracts in which the buyer acquires the right
to buy from or sell to another party some specified amount of an
underlying variable or index at a stated price (strike price) during
a period or on a specified future date, in return for compensation
(such as a fee or premium). The seller is obligated to purchase or
sell the variable or index at the discretion of the buyer of the contract.
Swaps – obligations between two parties to exchange a series of
cash flows at periodic intervals (settlement dates), for a specified
period. The cash flows of a swap are either fixed, or determined
for each settlement date by multiplying the quantity (notional
principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged.

intangible assets. Goodwill is the excess of the purchase price over the
fair market value of the net assets acquired.
Loans secured by real estate – includes home equity loans, junior liens
secured by 1-4 family residential properties and all other loans secured
by real estate.
Loans to individuals – includes outstanding credit card balances and
other secured and unsecured consumer loans.
Long-term assets (5+ years) – loans and debt securities with remaining
maturities or repricing intervals of over five years.
Maximum credit exposure – the maximum contractual credit exposure
remaining under recourse arrangements and other seller-provided
credit enhancements provided by the reporting bank to securitizations.
Mortgage-backed securities – certificates of participation in pools of residential mortgages and collateralized mortgage obligations issued or
guaranteed by government-sponsored or private enterprises. Also, see
“Securities”, below.
Net charge-offs – total loans and leases charged off (removed from balance sheet because of uncollectibility), less amounts recovered on
loans and leases previously charged off.
Net interest margin – the difference between interest and dividends
earned on interest-bearing assets and interest paid to depositors and
other creditors, expressed as a percentage of average earning assets.
No adjustments are made for interest income that is tax exempt.
Net loans to total assets – loans and lease financing receivables, net of
unearned income, allowance and reserves, as a percent of total assets
on a consolidated basis.
Net operating income – income excluding discretionary transactions
such as gains (or losses) on the sale of investment securities and
extraordinary items. Income taxes subtracted from operating income
have been adjusted to exclude the portion applicable to securities
gains (or losses).
Noncurrent assets – the sum of loans, leases, debt securities and other
assets that are 90 days or more past due, or in nonaccrual status.
Noncurrent loans & leases – the sum of loans and leases 90 days or
more past due, and loans and leases in nonaccrual status.
Number of institutions reporting – the number of institutions that actually filed a financial report.
Other borrowed funds – federal funds purchased, securities sold with
agreements to repurchase, demand notes issued to the U.S. Treasury,
FHLB advances, other borrowed money, mortgage indebtedness, obligations under capitalized leases and trading liabilities, less revaluation
losses on assets held in trading accounts.
Other real estate owned – primarily foreclosed property. Direct and
indirect investments in real estate ventures are excluded. The amount
is reflected net of valuation allowances. For institutions that file a
Thrift Financial Report (TFR), the valuation allowance subtracted
also includes allowances for other repossessed assets. Also, for TFR
filers the components of other real estate owned are reported gross of
valuation allowances.
Percent of institutions with earnings gains – the percent of institutions
that increased their net income (or decreased their losses) compared
to the same period a year earlier.
“Problem” institutions – federal regulators assign a composite rating to
each financial institution, based upon an evaluation of financial and
operational criteria. The rating is based on a scale of 1 to 5 in ascending order of supervisory concern. “Problem” institutions are those
institutions with financial, operational, or managerial weaknesses that

Derivatives underlying risk exposure – the potential exposure characterized by the level of banks’ concentration in particular underlying
instruments, in general. Exposure can result from market risk, credit
risk and operational risk, as well as, interest rate risk.

Domestic deposits to total assets – total domestic office deposits as a percent of total assets on a consolidated basis.
Earning assets – all loans and other investments that earn interest or
dividend income.
Efficiency ratio – Noninterest expense less amortization of intangible
assets as a percent of net interest income plus noninterest income.
This ratio measures the proportion of net operating revenues that are
absorbed by overhead expenses, so that a lower value indicates greater
efficiency.
Estimated insured deposits – in general, insured deposits are total
domestic deposits minus estimated uninsured deposits. Prior to June
30, 2000 the uninsured estimate is calculated as the sum of the excess
amounts in accounts over $100,000. Beginning June 30, 2000 the
amount of estimated uninsured deposits is adjusted to consider a
financial institution's own estimate of uninsured deposits when such
an estimate is reported. Beginning in 2006 the uninsured deposits estimate also considers IRA accounts over $250,000.
Failed/assisted institutions – an institution fails when regulators take
control of the institution, placing the assets and liabilities into a
bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover
losses. An institution is defined as “assisted” when the institution
remains open and receives some insurance funds in order to continue
operating.
FHLB advances – all borrowings by FDIC insured institutions from the
Federal Home Loan Bank System (FHLB), as reported by Call Report
filers and by TFR filers.
Goodwill and other intangibles – intangible assets include servicing
rights, purchased credit card relationships and other identifiable

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Quarterly Banking Profile
Thrift Financial Report (TFR) filers also include gains (losses) on the
sales of assets held for sale.
Seller’s interest in institution’s own securitizations – the reporting bank’s
ownership interest in loans and other assets that have been securitized, except an interest that is a form of recourse or other seller-provided credit enhancement. Seller’s interests differ from the securities
issued to investors by the securitization structure. The principal
amount of a seller’s interest is generally equal to the total principal
amount of the pool of assets included in the securitization structure
less the principal amount of those assets attributable to investors, i.e.,
in the form of securities issued to investors.
Subchapter S Corporation – A Subchapter S corporation is treated as a
pass-through entity, similar to a partnership, for federal income tax
purposes. It is generally not subject to any federal income taxes at the
corporate level. This can have the effect of reducing institutions’
reported taxes and increasing their after-tax earnings.
Trust assets – market value, or other reasonably available value of
fiduciary and related assets, to include marketable securities, and
other financial and physical assets. Common physical assets held in
fiduciary accounts include real estate, equipment, collectibles, and
household goods. Such fiduciary assets are not included in the
assets of the financial institution.
Unearned income & contra accounts – unearned income for Call Report
filers only.
Unused loan commitments – includes credit card lines, home equity
lines, commitments to make loans for construction, loans secured by
commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for sale, which are accounted for as derivatives
on the balance sheet.)
Volatile liabilities – the sum of large-denomination time deposits, foreign-office deposits, federal funds purchased, securities sold under
agreements to repurchase, and other borrowings.
Yield on earning assets – total interest, dividend and fee income earned
on loans and investments as a percentage of average earning assets.

threaten their continued financial viability. Depending upon the
degree of risk and supervisory concern, they are rated either a “4” or
“5”. For all insured commercial banks and for insured savings banks
for which the FDIC is the primary federal regulator, FDIC composite
ratings are used. For all institutions whose primary federal regulator is
the OTS, the OTS composite rating is used.
Recourse – an arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it
has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank’s claim on the asset. If a
bank has no claim on an asset it has sold, then the retention of any
credit risk is recourse.
Reserves for losses – the allowance for loan and lease losses on a consolidated basis.
Restructured loans and leases – loan and lease financing receivables
with terms restructured from the original contract. Excludes restructured loans and leases that are not in compliance with the modified
terms.
Retained earnings – net income less cash dividends on common and
preferred stock for the reporting period.
Return on assets – net income (including gains or losses on securities
and extraordinary items) as a percentage of average total assets. The
basic yardstick of bank profitability.
Return on equity – net income (including gains or losses on securities
and extraordinary items) as a percentage of average total equity capital.
Risk-weighted assets – assets adjusted for risk-based capital definitions
which include on-balance-sheet as well as off-balance-sheet items
multiplied by risk-weights that range from zero to 100 percent. A
conversion factor is used to assign a balance sheet equivalent amount
for selected off-balance-sheet accounts.
Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity”,
which are reported at amortized cost (book value), and securities designated as “available-for-sale”, reported at fair (market) value.
Securities gains (losses) – realized gains (losses) on held-to-maturity and
available-for-sale securities, before adjustments for income taxes.

FDIC QUARTERLY

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2007, VOLUME 1, NO. 1


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102