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Quarterly Banking Profile

First Quarter 2010

INSURED INSTITUTION PERFORMANCE
■	
■	
■	
■	
■	

Industry Net Income Improves to a Two-Year High of $18 Billion
Loss Provisions Decline but Remain above $50 Billion
Asset Quality Deterioration Continues to Moderate
New Accounting Rules Cause Sharp Increase in Reported Loan Balances
Number of Insured Institutions Falls below 8,000

Earnings Post Significant Increase

New Accounting Rules Affect Reported Cash Flows

First quarter results for insured commercial banks and
savings institutions contained positive signs of recovery
for the industry. While new accounting rules had a major
effect on several components of the industry’s balance
sheet and income statement, there was clear improvement in certain performance indicators.1 Lower provisions for loan losses and reduced expenses for goodwill
impairment lifted the earnings of FDIC-­insured commercial banks and savings institutions to $18.0 billion.
While still low by historical standards, first quarter earnings represented a significant improvement from the $5.6
billion the industry earned in first quarter 2009 and are
the highest quarterly total since first quarter 2008. The
largest year-over-year increases occurred at the biggest
banks, but a majority of institutions (52.2 percent)
reported net income growth. This is the highest percentage of institutions reporting increased quarterly earnings
in more than three years (since third quarter 2006).

Implementation of FAS 166 and 167 caused a large
amount of loans in securitized loan pools to be consolidated into the reported loan balances of a relatively
small number of large insured institutions in the first
quarter. As a result, the interest income, interest
expense, and charge-offs associated with these balances
also were included in first quarter financial reports, and
the inclusion of the loan balances triggered changes to
capital and reserves, as well. Net interest income
totaled $109.1 billion in the first quarter, a $9.7 billion
(9.7 percent) increase from first quarter 2009. Most of
this increase reflected the application of the new
accounting rules. It was somewhat offset by a $2.1
billion (99.4 percent) year-over-year decline in income
from securitization activities and a $1.1 billion (18.5
percent) drop in servicing income that were also largely
a result of the new rules. Application of the accounting
changes had no significant effect on the year-over-year
increase in the industry’s reported net income; lower
provisions for loan losses and reduced expenses for

1

FASB Statements 166 and 167. See Notes to Users.

Chart 1

Chart 2
Quarterly Net Income

Billions of Dollars
60

Percentage of Insured Institutions with Earnings Gains
Percent of Institutions with Year-over-Year Increases in Quarterly Net Income
70

50
40 36.9 38.0 38.0 35.3 35.6 36.8
30

60
28.7

50
19.3

20
10

4.7 0.9

0.5

0

18.0
5.6
-4.4

-10
-20

40

2.0

30

-1.3

20

Securities and Other Gains/Losses, Net
Net Operating Income

-30
-40

10
0

-37.8

1

2 3
2006

FDIC Quarterly

4

1

2 3
2007

4

1

2 3
2008

4

1

2 3
2009

4 1
2010

1

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
2009 2010
2008
2005
2006
2007

2010, Volume 4, No. 2

average margin increased to a seven-year high of 3.83
percent, from 3.53 percent in fourth quarter 2009 and
3.41 percent in first quarter 2009. Most of the improvement occurred at a few large credit card lenders; only
40.7 percent of institutions reported higher NIMs
compared to the fourth quarter, although 57.8 percent
reported year-over-year improvement.

goodwill impairment were the main sources of the
improvement in industry earnings.

Reduced Loan-Loss Provisions Help Drive
Earnings Improvement
Insured institutions set aside $51.3 billion in provisions
for loan and lease losses in the first quarter, a $10.2
billion (16.6 percent) decline from a year earlier.
However, only about one-third of insured institutions
reported year-over-year declines in loss provisions, with
much of the overall reduction concentrated among a
few of the largest banks. Another positive factor in the
earnings improvement at larger institutions was a $2.2
billion (2.3 percent) decline in noninterest expenses
that was caused by lower goodwill impairment losses.
Total noninterest income was $6.6 billion (9.7 percent)
lower than a year earlier because of the declines in securitization and servicing income and a $1.5 billion (15.1
percent) reduction in trading revenue. The average
return on assets (ROA) rose to 0.54 percent, compared
to 0.16 percent in first quarter 2009. This is the highest
quarterly ROA for the industry since first quarter 2008.
Almost half of all institutions—48.1 percent—reported
improved ROAs.

C&I Charge-Offs Decline for First Time in Four Years
Loan losses posted a year-over-year increase for a 13th
consecutive quarter. Net charge-offs totaled $52.4
billion, an increase of $14.5 billion (38.4 percent) from a
year earlier. Credit cards accounted for almost threequarters ($10.4 billion) of the growth in charge-offs,
reflecting the securitized receivables brought back onto
balance sheets by the new accounting rules. Charge-offs
were up from a year ago in most major loan categories,
although the increases were smaller than in recent quarters. Most non-consumer loan categories were not
affected by the new accounting rules. A notable exception to the rising trend was loans to commercial and
industrial (C&I) borrowers, where charge-offs fell for the
first time since first quarter 2006, declining by $675
million (10.2 percent). Net charge-offs of real estate
loans secured by nonfarm nonresidential real estate properties increased by $1.6 billion (155.5 percent). Chargeoffs of residential mortgage loans were $1.6 billion (22.9
percent) higher than a year earlier, while charged-off
home equity loans rose by $1.2 billion (29.9 percent).

Rise in Average Margin Reflects Impact of
New Rules
The sharp increase in net interest income caused by
adoption of the new accounting rules significantly
boosted the industry’s net interest margin (NIM). The

Chart 4

Chart 3
Major Factors Contributing to the
Year-over-Year Change in Quarterly Earnings

Percent
4.5

Billions of Dollars
25

Quarterly Net Interest Margins
Assets < $1 Billion

Positive Factors

20

15

$2.2

Decrease in
Noninterest Expense

4.0

$9.7

Increase in Net
Interest Income

3.5

3.84
3.73

Negative Factors
10

5

0

FDIC Quarterly

$10.2

Decrease in Loan
Loss Provisions

$3.1

Increase in
Income Taxes

$6.6

Decrease in
Noninterest
Income

3.0

2.5

2

Assets > $1 Billion

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
2005
2007
2008
2009 2010
2006

2010, Volume 4, No. 2

Quarterly Banking Profile
caused the industry’s “coverage ratio” of reserves to
noncurrent loans and leases to increase for the first time
in 16 quarters, from 58.3 percent to 64.2 percent, even
though slightly fewer than half of all insured institutions (49.2 percent) improved their coverage ratios
during the quarter.

Increase in Noncurrent Loans Is Smallest in
Three Years
The amount of loans and leases that were noncurrent
(90 days or more past due or in nonaccrual status)
increased for a 16th consecutive quarter, rising by $17.4
billion (4.4 percent) from the level at the end of 2009.
This is the smallest quarterly increase in noncurrent
loans since third quarter 2007, and all of the increase
consisted of loans and leases 90 days or more past due.
Loans and leases in nonaccrual status fell for the first
time in four years, declining by $65 million. Noncurrent credit card loans increased during the quarter by
$7.6 billion (51.9 percent), reflecting the inclusion of
securitized credit card receivables. Noncurrent residential mortgage loans rose by $12.9 billion (7.2 percent),
and noncurrent nonfarm nonresidential real estate
loans increased by $3.7 billion (8.8 percent). In
contrast, noncurrent C&I loans declined by $5.1 billion
(12.2 percent), and noncurrent real estate construction
and development loans fell by $1.8 billion (2.5
percent). It was the second consecutive quarterly
decline in noncurrent levels for both loan categories.

Internal Capital Generation Turns Positive for
First Time in Two Years
Total equity capital increased by $15.1 billion (1.0
percent) in the first quarter. The increase would have
been larger, but institutions reported almost $22 billion
in reductions in equity capital stemming from the application of FAS 167. More than three-quarters of all
institutions (76.6 percent) increased their equity capital
by a combined total of $30 billion during the quarter,
but these increases were partially offset by the accounting-related equity declines noted above. Retained earnings were positive for the first time since first quarter
2008, as net income exceeded dividends by $13.6
billion. Insured institutions paid $4.4 billion in dividends in the first quarter, down $2.9 billion (39.4
percent) from a year earlier.

New Accounting Rules Require Higher Reserves at
Some Institutions

Accounting Change Lifts Reported Total Assets

Total reserves for loan losses of insured institutions
increased by $34.5 billion (15.1 percent) during the
first quarter, even though net charge-offs exceeded loss
provisions by $1.2 billion. The large jump in reported
reserves was associated with the requirements of FASB
166 and 167, as affected institutions converted equity
capital directly into reserves. The increased reserves

Industry assets increased for the first time since fourth
quarter 2008, and total loan and lease balances rose for
the first time since second quarter 2008, but only
because of the new accounting rules. Total assets
reported by insured institutions were $248.6 billion (1.9
percent) higher than at the end of 2009, but this was
entirely due to a $294.9 billion (69.9 percent) increase

Chart 6

Chart 5
Quarterly Net Charge-offs and Change in
Noncurrent Loans, 2007–2010

Quarterly Change in Loan Balances,
First Quarter 2010

Billions of Dollars
110

Billions of Dollars
350
$295
300

Quarterly Change in Noncurrent Loans
Quarterly Net Charge-offs

90

250
200

70

150
100

50

50
30

-$29

-50

10
-10

$28

0
-100
1

FDIC Quarterly

2
3
2007

4

1

2
3
2008

4

1

2
3
2009

4

1
2010

3

Credit
Cards

Other
Consumer
Loans

Residential
Mortgage
Loans

-$2
Home
Equity
Lines of
Credit

-$33

-$40

C&I
Loans

Other
Loans &
Leases

2010, Volume 4, No. 2

in credit card loans caused by the consolidation of more
than $300 billion in securitized credit card receivables
into reported loan balances at the end of the first quarter. Other consumer loan balances increased by $28.0
billion, also reflecting similar consolidations of securitized loan pools into reported loan balances, but all
other major loan categories registered net declines
during the quarter. C&I loan balances fell by $33.1
billion (2.7 percent), real estate construction and development loans declined by $33.1 billion (7.3 percent),
and residential mortgage loans declined by $28.9 billion
(1.5 percent). Real estate loans secured by nonfarm
nonresidential real estate properties declined for the
first time since third quarter 1992, falling by $891
million (0.1 percent). In addition to the declines in
most major loan categories, banks reduced their holdings of mortgage-backed securities by $8.9 billion (0.6
percent). Institutions increased their portfolios of U.S.
Treasury securities by $54.4 billion (53.0 percent) and
their balances with Federal Reserve banks by $23.6
billion (4.1 percent).

Secured Borrowings Register Sharp Increase
A substantial amount of short-term secured borrowings
accompanied securitized loans onto bank balance sheets
in the first quarter. Total deposits fell for the first time
in a year, declining by $28.6 billion (0.3 percent).
Nondeposit liabilities increased by $262.9 billion (10.9
percent). Federal Home Loan Bank advances fell for a
sixth consecutive quarter, declining by $52.9 billion
(9.9 percent), while other nondeposit borrowings
increased by $294.3 billion (52.8 percent).

“Problem List” Continues to Grow
The number of institutions reporting quarterly financial results declined by 80 in the first quarter, from
8,012 to 7,932. Forty-one FDIC-insured institutions
failed during the quarter, while 37 institutions were
merged into other charters. Only three new charters
were added during the quarter, and all three were charters formed to acquire failed banks. The number of
insured commercial banks and savings institutions on
the FDIC’s ­“Problem List” increased from 702 to 775
during the quarter, and total assets of “problem” institutions increased from $403 billion to $431 billion.

Securitized Consumer Loans Return to Balance Sheets
The increase in loan balances was mirrored by declines
in loans securitized and sold. Securitized credit card
receivables declined by $347.4 billion (95.6 percent)
during the quarter, while securitized other consumer
loans fell by $25.7 billion (80.5 percent), and securitized home equity lines of credit dropped by $5.8 billion
(97.2 percent). In all, securitized assets posted a $403.1
billion (22.2 percent) decline in the first quarter.

Author:

Chart 8

Chart 7

Number of FDIC-Insured “Problem” Institutions,
2006–2010

Quarterly Change in Loan Balances
Securitized and Sold, First Quarter 2010

Billions of Dollars
0

-$19

-50

-$15

-$6

-$4

Number of Institutions
900

-$6

775

800

-100

700

-150

600

-200

500

702
552
416

400

-250

300

-300
-350

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

252

200
-$347

-400

FDIC Quarterly

Credit
Cards

Other
Consumer
Loans

Residential
Mortgage
Loans

Home
Equity
Lines of
Credit

C&I
Loans

100

Other
Loans &
Leases

0

4

76 90
48 50 47 50 53 61 65

1

2 3
2006

4

1

2 3
2007

4

1

117

305

171

2 3
2008

4

1

2 3
2009

4

1
2010

2010, Volume 4, No. 2

Quarterly Banking Profile
TABLE I-A. Selected Indicators, All FDIC-Insured Institutions*
Return on assets (%)������������������������������������������������������������������������������������������������������
Return on equity (%)�������������������������������������������������������������������������������������������������������
Core capital (leverage) ratio (%)������������������������������������������������������������������������������������
Noncurrent assets plus other real estate owned to assets (%)������������������������������������
Net charge-offs to loans (%)������������������������������������������������������������������������������������������
Asset growth rate (%)�����������������������������������������������������������������������������������������������������
Net interest margin (%)���������������������������������������������������������������������������������������������������
Net operating income growth (%)����������������������������������������������������������������������������������
Number of institutions reporting�������������������������������������������������������������������������������������
Commercial banks���������������������������������������������������������������������������������������������������
Savings institutions�������������������������������������������������������������������������������������������������
Percentage of unprofitable institutions (%)��������������������������������������������������������������������
Number of problem institutions��������������������������������������������������������������������������������������
Assets of problem institutions (in billions)���������������������������������������������������������������������
Number of failed institutions������������������������������������������������������������������������������������������
Number of assisted institutions��������������������������������������������������������������������������������������

2010**
0.54
4.96
8.57
3.43
2.84
-1.34
3.83
230.35
7,932
6,772
1,160
18.67
775
$431
41
0

2009**
0.16
1.66
8.02
2.40
1.94
1.26
3.41
-72.79
8,247
7,038
1,209
22.31
305
$220
21
8

2009
0.08
0.74
8.63
3.33
2.50
-5.30
3.47
54.79
8,012
6,839
1,173
30.45
702
$403
140
8

2008
0.03
0.35
7.47
1.91
1.29
6.19
3.16
-90.68
8,305
7,086
1,219
24.86
252
$159
25
5

2007
0.81
7.75
7.97
0.95
0.59
9.88
3.29
-27.59
8,534
7,283
1,251
12.09
76
$22
3
0

2006
1.28
12.30
8.22
0.54
0.39
9.03
3.31
8.52
8,680
7,401
1,279
7.94
50
$8
0
0

2005
1.28
12.43
8.24
0.50
0.49
7.64
3.47
11.40
8,833
7,526
1,307
6.22
52
$7
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.

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
2010
7,932
2,027,141

4th Quarter
2009
8,012
2,063,107

1st Quarter
2009
8,247
2,114,901

%Change
09Q1-10Q1
-3.8
-4.1

$13,356,625
4,400,501
1,887,370
1,090,417
417,972
659,603
1,187,609
1,380,686
716,995
55,598
480,932
2,710
7,502,616
262,875
7,239,742
2,531,562
46,263
424,849
3,114,209

$13,107,980
4,462,931
1,916,253
1,091,308
451,080
661,429
1,220,672
1,060,226
422,092
59,581
482,524
3,765
7,282,168
228,348
7,053,820
2,500,459
41,226
428,338
3,084,137

$13,538,166
4,701,123
2,045,744
1,077,150
566,680
674,238
1,432,211
1,046,281
403,071
56,137
500,602
2,481
7,733,872
194,321
7,539,551
2,206,200
29,689
415,133
3,347,594

-1.3
-6.4
-7.7
1.2
-26.2
-2.2
-17.1
32.0
77.9
-1.0
-3.9
9.2
-3.0
35.3
-4.0
14.7
55.8
2.3
-7.0

Total liabilities and capital����������������������������������������������������������������������������������������������
Deposits�������������������������������������������������������������������������������������������������������������������
		
Domestic office deposits���������������������������������������������������������������������������������
		
Foreign office deposits������������������������������������������������������������������������������������
Other borrowed funds���������������������������������������������������������������������������������������������
Subordinated debt���������������������������������������������������������������������������������������������������
All other liabilities����������������������������������������������������������������������������������������������������
Total equity capital (includes minority interests)����������������������������������������������������
		
Bank equity capital�������������������������������������������������������������������������������������������

13,356,625
9,198,191
7,691,747
1,506,444
2,051,797
150,540
476,073
1,480,025
1,460,356

13,107,980
9,226,795
7,696,820
1,529,974
1,782,222
156,989
476,254
1,465,719
1,445,210

13,538,166
8,953,914
7,538,993
1,414,921
2,417,120
170,929
606,739
1,389,463
1,371,742

-1.3
2.7
2.0
6.5
-15.1
-11.9
-21.5
6.5
6.5

Loans and leases 30-89 days past due�������������������������������������������������������������������������
Noncurrent loans and leases�����������������������������������������������������������������������������������������
Restructured loans and leases��������������������������������������������������������������������������������������
Mortgage-backed securities������������������������������������������������������������������������������������������
Earning assets����������������������������������������������������������������������������������������������������������������
FHLB Advances��������������������������������������������������������������������������������������������������������������
Unused loan commitments���������������������������������������������������������������������������������������������
Trust assets��������������������������������������������������������������������������������������������������������������������
Assets securitized and sold***���������������������������������������������������������������������������������������
Notional amount of derivatives***����������������������������������������������������������������������������������

144,109
409,279
63,995
1,386,426
11,552,854
480,333
6,105,396
18,096,616
1,414,197
218,074,225

140,249
391,898
58,114
1,395,280
11,267,422
533,211
5,963,073
18,622,040
1,817,280
213,563,342

158,741
291,904
32,906
1,313,451
11,587,244
703,715
6,617,851
15,786,613
1,881,015
206,742,719

-9.2
40.2
94.5
5.6
-0.3
-31.7
-7.7
14.6
-24.8
5.5

(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��������������������������������������������������������������
Total net income (includes minority interests)���������������������
		
Bank net income������������������������������������������������������������
Net charge-offs����������������������������������������������������������������������������
Cash dividends����������������������������������������������������������������������������
Retained earnings�����������������������������������������������������������������������
Net operating income�����������������������������������������������������������

Full Year
2009
$541,155
145,487
395,668
249,151
260,403
384,868
-1,607
5,619
-3,787
11,040
10,239
187,424
47,183
-36,944
14,760

Full Year
2008
$603,300
245,576
357,724
176,217
207,711
368,313
-15,440
6,294
5,360
N/A
4,532
100,365
51,089
-46,557
9,536

*** Call Report filers only.

FDIC Quarterly

%Change
-10.3
-40.8
10.6
41.4
25.4
4.5
N/M
-10.7
N/M
N/A
125.9
86.7
-7.7
N/M
54.8

1st Quarter
2010
$138,407
29,280
109,128
51,264
61,591
95,288
1,603
7,624
58
18,203
18,010
52,434
4,386
13,624
16,927

1st Quarter
2009
$142,437
42,975
99,461
61,444
68,229
97,514
1,644
4,531
-31
5,813
5,550
37,896
7,242
-1,692
5,124

%Change
09Q1-10Q1
-2.8
-31.9
9.7
-16.6
-9.7
-2.3
-2.5
68.3
N/M
213.1
224.5
38.4
-39.4
N/M
230.4

N/A - Data Not Available; N/M - Not Meaningful.

5

2010, Volume 4, No. 2

TABLE III-A. First Quarter 2010, All FDIC-Insured Institutions
Asset Concentration Groups*
First Quarter
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������
7,932
Commercial banks�������������������������������������
6,772
Savings institutions�����������������������������������
1,160
Total assets (in billions)������������������������������������
$13,356.6
Commercial banks�������������������������������������
12,086.5
Savings institutions�����������������������������������
1,270.1
Total deposits (in billions)���������������������������������
9,198.2
Commercial banks�������������������������������������
8,294.0
Savings institutions�����������������������������������
904.2
Bank net income (in millions)���������������������������
18,010
Commercial banks�������������������������������������
15,841
Savings institutions�����������������������������������
2,169
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����������������

Credit
Card
International Agricultural Commercial
Banks
Banks
Banks
Lenders
21
4
1,553
4,355
17
4
1,548
3,890
4
0
5
465
$745.3
$3,157.3
$181.1
$4,498.0
722.4
3,157.3
180.4
4,016.4
22.9
0.0
0.7
481.6
269.2
2,010.3
148.8
3,430.6
255.8
2,010.3
148.2
3,101.0
13.4
0.0
0.6
329.6
1,071
5,842
438
2,084
857
5,842
436
1,644
214
0
2
440

Mortgage Consumer
Lenders
Lenders
745
75
189
59
556
16
$777.2
$94.7
191.2
49.1
586.1
45.6
512.3
78.6
89.9
38.3
422.4
40.3
1,525
331
811
245
714
86

Other
Specialized
All Other
<$1 Billion
<$1 Billion
304
813
276
742
28
71
$40.6
$126.5
35.7
106.9
4.9
19.6
30.9
105.0
27.6
89.3
3.3
15.7
121
276
72
251
49
25

All Other
>$1 Billion
62
47
15
$3,735.8
3,627.1
108.7
2,612.4
2,533.6
78.8
6,321
5,683
638

4.86
1.03
3.83
1.86
2.88
1.55
0.51
0.78
0.54
4.96
2.84

15.94
1.82
14.12
3.06
4.59
9.31
0.65
1.03
0.68
3.48
14.26

3.54
0.72
2.82
2.19
2.84
0.86
0.67
0.98
0.75
8.52
2.50

5.26
1.40
3.87
0.59
2.63
0.41
0.94
1.12
0.97
8.71
0.44

4.91
1.22
3.68
1.31
2.93
1.39
0.15
0.28
0.19
1.74
1.88

4.58
1.50
3.08
0.78
1.75
0.74
0.75
1.20
0.79
8.21
1.15

5.99
1.41
4.58
1.96
2.66
1.43
1.43
2.22
1.43
13.49
2.69

3.76
1.04
2.72
7.15
7.74
0.18
1.20
1.67
1.20
7.05
0.54

5.04
1.33
3.71
0.94
3.03
0.29
0.84
1.07
0.88
7.88
0.42

4.03
0.75
3.29
2.32
2.77
1.29
0.68
0.99
0.68
5.61
2.29

97.77
54.39
18.67
52.23

82.78
28.70
19.05
85.71

98.22
61.29
0.00
75.00

145.20
63.12
7.28
49.45

108.27
62.84
25.81
53.32

107.13
47.53
13.56
56.11

68.40
41.62
13.33
72.00

132.13
80.21
16.45
42.11

122.54
69.60
9.10
48.09

107.13
52.91
8.06
66.13

86.50

86.33

84.88

91.60

88.45

93.16

94.38

89.43

91.58

83.50

3.50
64.23

10.29
330.14

4.18
59.55

1.55
78.41

2.61
53.83

1.49
32.46

2.98
194.25

1.77
86.89

1.40
68.70

2.99
42.89

3.43
10.93
8.57
12.09
14.74
78.71
54.20
57.59

2.67
15.83
10.35
12.45
15.30
213.46
77.10
32.87

2.64
8.77
7.09
11.81
14.95
53.01
33.75
30.52

1.66
11.24
10.12
14.11
15.24
76.69
63.00
82.16

4.00
10.77
8.91
11.43
13.66
86.97
66.33
74.52

3.14
9.76
9.14
19.12
20.14
89.24
58.83
65.83

1.27
10.54
10.22
13.70
15.46
89.28
74.03
81.85

0.69
16.96
15.18
34.20
35.09
31.80
24.17
73.89

1.54
11.21
10.57
17.48
18.63
66.28
55.03
83.01

3.87
12.15
8.66
11.64
14.81
72.54
50.72
60.44

Structural Changes
New charters���������������������������������������������
Institutions absorbed by mergers�������������
Failed institutions��������������������������������������

3
37
41

0
0
0

0
0
0

0
4
1

2
28
37

0
0
2

0
0
0

0
0
1

0
1
0

1
4
0

PRIOR FIRST QUARTERS
(The way it was...)
Number of institutions����������������������������� 2009
������������������������������������� 2007
������������������������������������� 2005

8,247
8,649
8,931

25
26
28

5
4
5

1,524
1,617
1,698

4,680
4,719
4,489

838
798
971

80
115
134

305
403
459

745
906
1,079

45
61
68

Total assets (in billions)��������������������������� 2009
������������������������������������� 2007
������������������������������������� 2005

$13,538.2
11,982.3
10,286.4

$476.0
407.2
363.7

$3,203.0
2,435.7
1,875.5

$165.4
149.0
135.1

$6,002.1
4,757.4
3,466.7

$1,100.9
1,507.4
1,582.0

$73.2
99.4
110.9

$36.2
45.7
54.5

$103.5
119.5
137.0

$2,377.9
2,461.0
2,561.0

Return on assets (%)������������������������������� 2009
������������������������������������� 2007
������������������������������������� 2005

0.16
1.20
1.34

-1.36
3.84
3.22

0.61
0.93
0.92

0.73
1.19
1.28

-0.18
1.14
1.32

0.54
0.91
1.20

0.08
1.77
1.52

0.30
2.03
1.52

0.92
0.99
1.17

0.48
1.25
1.48

Net charge-offs to loans & leases (%)���� 2009
������������������������������������� 2007
������������������������������������� 2005

1.94
0.45
0.47

8.57
3.86
4.39

2.42
0.57
0.76

0.52
0.14
0.13

1.45
0.23
0.22

1.05
0.21
0.10

2.56
1.43
1.49

0.43
0.18
0.22

0.30
0.17
0.21

1.87
0.31
0.18

Noncurrent assets plus
OREO to assets (%)������������������������� 2009
������������������������������������� 2007
������������������������������������� 2005

2.40
0.57
0.50

2.56
1.32
1.26

2.00
0.41
0.54

1.48
0.78
0.71

2.82
0.62
0.49

3.04
0.67
0.41

0.99
0.55
0.52

0.62
0.18
0.30

1.11
0.59
0.56

1.71
0.45
0.42

Equity capital ratio (%)���������������������������� 2009
������������������������������������� 2007
������������������������������������� 2005

10.13
10.58
10.26

23.55
24.50
21.96

8.44
7.67
8.17

11.05
10.87
10.78

10.26
11.32
9.95

8.92
10.15
10.83

9.25
10.25
11.10

16.24
20.27
17.09

11.34
11.26
10.79

9.77
9.75
9.97

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

2010, Volume 4, No. 2

Quarterly Banking Profile
TABLE III-A. First Quarter 2010, All FDIC-Insured Institutions
Asset Size Distribution
FIRST QUARTER
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������������
7,932
Commercial banks�������������������������������������������
6,772
Savings institutions�����������������������������������������
1,160
Total assets (in billions)������������������������������������������ $13,356.6
Commercial banks�������������������������������������������
12,086.5
Savings institutions�����������������������������������������
1,270.1
Total deposits (in billions)���������������������������������������
9,198.2
Commercial banks�������������������������������������������
8,294.0
Savings institutions�����������������������������������������
904.2
Net income (in millions)������������������������������������������
18,010
Commercial banks�������������������������������������������
15,841
Savings institutions�����������������������������������������
2,169
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����������������������

Geographic Regions*

Less than
$100
$1 Billion
Greater
$100
Million to
to
than
Million
$1 Billion $10 Billion $10 Billion New York
2,778
4,474
575
105
976
2,469
3,780
440
83
512
309
694
135
22
464
$155.4
$1,339.6
$1,478.2 $10,383.4
$2,692.2
138.7
1,098.1
1,136.3
9,713.4
1,998.6
16.7
241.5
342.0
669.9
693.6
130.3
1,099.7
1,118.2
6,850.0
1,743.7
117.2
911.3
859.1
6,406.5
1,262.8
13.1
188.3
259.1
443.6
480.9
198
1,427
758
15,626
3,663
155
1,185
310
14,192
2,721
44
242
448
1,435
942

Atlanta
1,103
977
126
$2,989.1
2,864.8
124.4
2,112.3
2,020.5
91.8
2,373
2,278
94

Chicago
1,636
1,346
290
$2,977.9
2,848.1
129.7
2,016.0
1,919.7
96.2
3,605
3,722
-116

Kansas
City
1,868
1,769
99
$1,664.4
1,612.9
51.6
1,196.7
1,157.6
39.2
2,723
2,627
96

San
Dallas
Francisco
1,654
695
1,535
633
119
62
$786.5
$2,246.4
695.7
2,066.4
90.8
180.0
614.3
1,515.2
540.7
1,392.7
73.6
122.5
1,498
4,149
1,287
3,206
211
942

4.86
1.03
3.83
1.86
2.88
1.55
0.51
0.78
0.54
4.96
2.84
97.77
54.39
18.67
52.23

5.28
1.41
3.87
1.27
3.72
0.46
0.47
0.66
0.51
4.28
0.61
123.16
77.43
19.76
49.32

5.22
1.50
3.72
0.89
3.10
0.69
0.38
0.56
0.43
4.27
0.86
118.78
71.94
17.30
53.20

5.02
1.38
3.63
1.23
2.82
1.33
0.15
0.44
0.21
1.90
1.75
116.18
60.54
22.96
56.87

4.77
0.90
3.87
2.09
2.85
1.71
0.58
0.85
0.61
5.48
3.40
95.12
51.52
24.76
62.86

5.66
1.25
4.41
1.72
2.80
1.90
0.54
0.85
0.56
4.31
4.09
83.83
48.82
15.37
64.86

4.55
0.98
3.57
1.81
2.73
1.64
0.31
0.46
0.32
2.83
2.73
105.03
55.79
34.90
49.14

3.93
0.86
3.07
2.02
3.03
1.13
0.41
0.63
0.49
5.69
2.35
99.29
63.69
16.26
47.25

5.97
0.93
5.04
2.34
3.41
2.29
0.66
0.97
0.66
5.70
3.27
103.30
48.61
12.85
51.71

4.95
1.08
3.87
1.40
3.18
0.82
0.70
0.96
0.76
7.35
1.21
102.55
64.52
11.91
51.27

4.68
1.10
3.58
1.71
2.49
1.29
0.72
1.09
0.74
6.60
2.34
105.69
50.50
34.96
54.82

86.50

91.10

91.47

90.49

85.22

86.76

83.89

86.71

87.23

90.07

87.57

3.50
64.23

1.64
62.01

1.81
49.56

2.33
50.77

4.01
67.50

4.09
101.26

3.33
50.96

3.38
56.40

3.75
60.66

2.11
54.18

3.52
69.45

3.43
10.93
8.57
12.09
14.74
78.71
54.20
57.59

2.31
11.99
11.54
17.57
18.67
71.87
60.24
83.81

3.37
10.07
9.53
13.52
14.74
80.09
65.74
81.98

3.69
10.87
9.47
13.52
14.92
84.00
63.54
75.17

3.42
11.04
8.26
11.62
14.66
77.75
51.29
51.55

2.44
12.59
9.39
13.36
15.72
84.15
54.50
57.60

4.16
11.29
7.93
11.03
14.21
77.48
54.76
62.71

3.22
8.56
7.09
10.50
13.82
68.50
46.37
52.46

4.79
11.52
8.96
11.03
13.60
93.88
67.50
66.78

3.19
10.42
9.36
12.98
14.71
82.19
64.19
77.60

3.02
11.37
9.80
14.77
16.52
74.34
50.14
43.74

Structural Changes
New charters���������������������������������������������������
Institutions absorbed by mergers�������������������
Failed institutions��������������������������������������������

3
37
41

0
17
11

1
17
22

2
2
8

0
1
0

0
4
3

2
4
14

0
4
4

0
9
5

1
6
3

0
10
12

PRIOR FIRST QUARTERs
(The way it was…)
Number of institutions����������������������������������� 2009
��������������������������������������������2007
��������������������������������������������2005

8,247
8,649
8,931

3,052
3,597
4,053

4,504
4,397
4,285

576
536
480

115
119
113

1,005
1,087
1,118

1,172
1,222
1,220

1,692
1,818
1,932

1,924
2,007
2,089

1,690
1,742
1,824

764
773
748

Total assets (in billions)��������������������������������� 2009
��������������������������������������������2007
��������������������������������������������2005

$13,538.2
11,982.3
10,286.4

$167.2
189.6
210.1

$1,359.5
1,298.2
1,207.8

$1,512.5
1,420.9
1,324.5

$10,498.9
9,073.6
7,544.1

$2,517.7
2,204.0
2,843.6

$3,520.2
2,948.8
2,274.0

$3,176.6
2,778.8
2,423.0

$1,064.7
863.4
762.9

$909.0
662.8
618.5

$2,350.2
2,524.5
1,364.4

Return on assets (%)������������������������������������� 2009
��������������������������������������������2007
��������������������������������������������2005

0.16
1.20
1.34

0.25
0.85
1.04

0.27
1.08
1.21

-0.24
1.14
1.34

0.20
1.23
1.36

0.06
1.12
1.31

0.16
1.22
1.44

0.12
1.07
1.01

0.56
1.75
1.67

-0.37
1.11
1.28

0.37
1.20
1.64

Net charge-offs to loans & leases (%)���������� 2009
��������������������������������������������2007
��������������������������������������������2005

1.94
0.45
0.47

0.57
0.15
0.12

0.76
0.13
0.15

1.43
0.25
0.27

2.26
0.55
0.57

2.23
0.81
0.71

1.76
0.22
0.22

1.63
0.31
0.32

2.15
0.63
0.58

0.91
0.19
0.20

2.67
0.57
0.63

Noncurrent assets plus
OREO to assets (%)������������������������������� 2009
��������������������������������������������2007
��������������������������������������������2005

2.40
0.57
0.50

1.87
0.77
0.74

2.53
0.67
0.54

2.98
0.58
0.48

2.31
0.55
0.49

1.53
0.56
0.52

2.56
0.36
0.32

2.43
0.60
0.51

2.72
1.08
0.78

2.60
0.63
0.59

2.81
0.61
0.52

Equity capital ratio (%)���������������������������������� 2009
��������������������������������������������2007
��������������������������������������������2005

10.13
10.58
10.26

12.66
13.24
11.85

9.96
10.50
10.08

10.56
11.24
10.74

10.05
10.43
10.16

12.13
12.72
11.29

10.19
10.04
8.49

8.37
9.13
9.24

9.90
10.57
10.55

9.87
10.60
10.80

10.49
10.92
12.48

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

2010, Volume 4, No. 2

TABLE IV-A. Full Year 2009, All FDIC-Insured Institutions
Asset Concentration Groups*
Full Year
All Insured
(The way it is...)
Institutions
8,012
Number of institutions reporting�����������������������������������������
Commercial banks�������������������������������������������������������
6,839
Savings institutions�����������������������������������������������������
1,173
$13,108.0
Total assets (in billions)������������������������������������������������������
Commercial banks�������������������������������������������������������
11,843.8
Savings institutions�����������������������������������������������������
1,264.2
Total deposits (in billions)���������������������������������������������������
9,226.8
Commercial banks�������������������������������������������������������
8,333.2
Savings institutions�����������������������������������������������������
893.6
Net income (in millions)������������������������������������������������������
10,239
Commercial banks�������������������������������������������������������
8,559
Savings institutions�����������������������������������������������������
1,680
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����������������������������������

Credit
Other
Card International Agricultural Commercial Mortgage Consumer Specialized All Other All Other
Banks
Banks
Banks
Lenders
Lenders
Lenders
<$1 Billion <$1 Billion >$1 Billion
22
4
1,568
4,452
767
82
289
772
56
18
4
1,563
3,974
203
66
258
708
45
4
0
5
478
564
16
31
64
11
$521.9
$3,107.1
$182.0
$4,547.3
$810.5
$96.2
$38.0
$116.2
$3,688.8
498.3
3,107.1
181.3
4,059.4
203.5
50.8
32.8
99.4
3,611.2
23.6
0.0
0.7
487.9
606.9
45.4
5.2
16.8
77.6
270.0
2,024.5
148.9
3,463.4
528.3
78.4
28.4
96.5
2,588.4
256.2
2,024.5
148.3
3,129.4
99.8
38.9
25.0
83.1
2,528.0
13.8
0.0
0.6
334.1
428.5
39.5
3.4
13.4
60.4
-1,409
2,407
1,446
-18,692
5,206
304
274
906
19,797
-2,204
2,407
1,442
-17,674
3,067
186
156
862
20,317
795
0
4
-1,018
2,139
118
118
44
-520

4.75
1.28
3.47
1.96
2.89
1.87
0.11
0.12
0.08
0.74
2.50
132.93
55.57
30.45
40.44

11.42
1.36
10.06
5.41
5.75
8.38
-0.36
-0.51
-0.28
-1.20
9.77
120.45
39.41
31.82
31.82

3.86
0.94
2.92
1.91
2.59
1.48
0.27
0.02
0.08
0.92
2.97
134.78
58.88
75.00
25.00

5.65
1.72
3.92
0.64
2.75
0.58
0.79
0.94
0.82
7.39
0.65
136.01
64.04
11.54
40.18

5.07
1.57
3.50
1.48
3.15
1.92
-0.42
-0.49
-0.41
-3.99
2.01
135.64
62.71
42.72
37.38

4.89
1.84
3.05
1.14
1.85
0.98
0.69
1.06
0.65
7.38
1.21
132.68
46.16
22.56
56.98

5.82
1.70
4.12
2.31
2.93
2.67
0.34
0.59
0.34
3.23
2.74
123.95
46.79
17.07
45.12

4.03
1.20
2.83
7.49
8.65
0.22
0.70
1.13
0.72
4.10
0.78
105.35
82.92
19.03
36.68

5.41
1.64
3.78
0.89
3.01
0.40
0.79
0.96
0.80
7.14
0.54
129.28
68.73
11.92
42.36

4.12
1.00
3.12
2.31
2.63
1.60
0.47
0.71
0.51
4.70
2.19
137.71
51.68
23.21
55.36

85.96

80.29

84.68

91.04

88.43

92.38

94.74

89.16

91.43

82.69

3.14
58.27

9.33
277.71

4.34
58.58

1.50
81.70

2.53
53.87

1.43
30.96

3.01
172.33

1.59
82.91

1.33
74.94

2.89
45.21

3.33
11.03
8.63
11.66
14.31
76.45
53.81
58.72

2.31
24.56
19.60
14.24
16.50
120.53
62.36
46.24

2.75
8.75
6.98
11.28
14.35
51.23
33.38
30.96

1.56
10.96
9.95
13.54
14.66
78.08
63.86
81.80

3.87
10.49
8.70
11.00
13.22
87.91
66.95
74.26

3.17
9.48
8.92
18.57
19.55
90.65
59.09
65.11

1.44
11.16
10.46
14.13
15.91
93.32
76.04
80.38

0.69
17.72
15.62
35.79
36.63
33.33
24.90
74.24

1.34
11.27
10.65
17.44
18.58
66.95
55.57
83.00

3.55
11.95
8.22
10.77
14.13
73.57
51.62
60.68

Structural Changes
New charters���������������������������������������������������������������
Institutions absorbed by mergers�������������������������������
Failed institutions��������������������������������������������������������

31
179
140

0
1
0

0
0
0

1
24
4

7
137
123

1
4
8

0
0
0

19
1
0

1
7
5

2
5
0

PRIOR Full Years
(The way it was…)
Number of Institutions������������������������������������������������2008
��������������������������������������������������������2006
��������������������������������������������������������2004

8,305
8,680
8,976

26
26
34

5
4
5

1,559
1,634
1,731

4,753
4,713
4,423

839
817
990

91
123
132

279
411
466

709
895
1,120

44
57
75

Total assets (in billions)����������������������������������������������2008
��������������������������������������������������������2006
��������������������������������������������������������2004

$13,841.2
11,861.9
10,107.4

$513.0
408.4
383.0

$3,410.1
2,337.2
1,881.3

$168.8
149.2
138.7

$5,461.2
4,905.0
3,301.4

$997.1
1,445.0
1,505.0

$122.2
109.9
104.1

$34.4
42.2
52.0

$94.8
119.6
143.3

$3,039.6
2,345.4
2,598.4

Return on assets (%)��������������������������������������������������2008
��������������������������������������������������������2006
��������������������������������������������������������2004

0.03
1.28
1.28

1.70
4.19
4.03

0.25
1.01
0.76

1.00
1.23
1.22

-0.13
1.28
1.29

-0.48
0.94
1.17

-0.01
1.75
1.66

1.43
1.54
1.68

0.82
1.04
1.10

-0.09
1.26
1.32

Net charge-offs to loans & leases (%)�����������������������2008
��������������������������������������������������������2006
��������������������������������������������������������2004

1.29
0.39
0.56

5.94
3.48
4.66

1.43
0.48
0.91

0.41
0.17
0.22

1.14
0.22
0.30

0.86
0.15
0.12

1.74
1.40
1.57

0.35
0.42
0.59

0.35
0.20
0.29

0.74
0.22
0.25

Noncurrent assets plus
OREO to assets (%)��������������������������������������������2008
��������������������������������������������������������2006
��������������������������������������������������������2004

1.91
0.54
0.53

2.08
1.37
1.50

1.59
0.40
0.57

1.17
0.67
0.68

2.34
0.56
0.51

2.55
0.56
0.43

1.31
0.85
0.53

0.35
0.20
0.31

1.05
0.56
0.59

1.35
0.46
0.45

Equity capital ratio (%)�����������������������������������������������2008
��������������������������������������������������������2006
��������������������������������������������������������2004

9.33
10.52
10.28

20.47
22.88
20.54

7.01
7.75
8.05

10.99
10.73
10.78

10.04
11.16
10.10

7.45
9.91
10.53

9.85
14.16
11.36

18.63
21.12
17.47

11.28
10.97
10.79

9.11
9.78
10.23

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��������������������������������������

*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

2010, Volume 4, No. 2

Quarterly Banking Profile
TABLE IV-A. Full Year 2009, All FDIC-Insured Institutions
Asset Size Distribution
Full Year
All Insured Less than
(The way it is...)
Institutions $100 Million
8,012
2,847
Number of institutions reporting���������������������
Commercial banks�����������������������������������
6,839
2,526
Savings institutions���������������������������������
1,173
321
$13,108.0
$158.9
Total assets (in billions)����������������������������������
Commercial banks�����������������������������������
11,843.8
141.4
Savings institutions���������������������������������
1,264.2
17.5
Total deposits (in billions)�������������������������������
9,226.8
132.5
Commercial banks�����������������������������������
8,333.2
119.0
Savings institutions���������������������������������
893.6
13.6
Net income (in millions)����������������������������������
10,239
-48
Commercial banks�����������������������������������
8,559
17
Savings institutions���������������������������������
1,680
-65
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��������������

Geographic Regions*

$100 Million $1 Billion
Greater
to
to
than
$1 Billion
$10 Billion $10 Billion New York
4,493
565
107
986
3,799
429
85
518
694
136
22
468
$1,354.7
$1,461.8
$10,132.7
$2,587.8
1,111.7
1,119.6
9,471.1
1,894.9
243.0
342.2
661.5
692.9
1,106.4
1,107.9
6,880.0
1,749.4
918.2
850.6
6,445.4
1,272.5
188.2
257.3
434.5
476.9
-1,110
-4,989
16,386
-1,269
-1,019
-4,570
14,131
-1,915
-92
-419
2,255
646

Atlanta
Chicago
1,121
1,647
992
1,355
129
292
$3,427.5 $2,934.5
3,303.2
2,803.4
124.3
131.0
2,464.5
2,020.1
2,373.1
1,922.7
91.4
97.5
-333
5,616
53
6,419
-386
-803

Kansas
City
1,879
1,780
99
$1,145.7
1,094.8
50.9
867.7
829.2
38.5
8,716
8,718
-2

San
Francisco
Dallas
1,660
719
1,540
654
120
65
$784.9
$2,227.6
695.6
2,051.8
89.3
175.8
606.3
1,518.8
535.0
1,400.6
71.3
118.1
2,819
-5,310
2,472
-7,189
346
1,878

4.75
1.28
3.47
1.96
2.89
1.87
0.11
0.12
0.08
0.74
2.50

5.59
1.75
3.84
0.99
3.76
0.72
-0.05
0.03
-0.03
-0.25
0.88

5.54
1.90
3.64
1.02
3.29
1.14
-0.10
-0.05
-0.08
-0.83
1.23

5.18
1.75
3.43
1.39
3.09
1.69
-0.32
-0.33
-0.35
-3.23
1.90

4.56
1.11
3.45
2.17
2.80
2.01
0.20
0.20
0.16
1.52
2.84

5.17
1.46
3.71
1.93
2.84
1.92
0.24
-0.05
-0.05
-0.39
2.75

4.42
1.22
3.19
1.87
2.73
1.90
-0.08
0.00
-0.01
-0.09
2.28

4.13
1.12
3.01
2.11
2.87
1.63
0.14
0.28
0.19
2.23
2.35

5.55
1.08
4.46
3.10
3.88
1.90
0.79
1.18
0.77
7.43
2.40

5.11
1.36
3.75
1.60
3.32
1.24
0.32
0.48
0.36
3.59
1.34

5.05
1.43
3.62
1.48
2.61
2.32
-0.19
-0.38
-0.24
-2.32
3.33

132.93
55.57
30.45
40.44

130.74
82.22
28.42
39.37

133.50
73.46
30.49
41.00

132.05
63.23
38.05
42.12

133.01
52.31
42.99
36.45

129.33
52.92
27.89
55.98

141.21
55.43
55.93
29.17

137.91
57.49
26.41
39.89

117.96
54.03
20.17
40.18

139.38
63.23
19.16
43.25

127.71
54.85
56.47
32.13

85.96

90.76

91.32

90.23

84.55

85.95

83.26

86.66

86.80

90.18

87.27

3.14
58.27

1.62
63.91

1.78
50.11

2.20
49.29

3.57
60.31

3.40
84.30

2.99
48.26

3.32
56.45

2.70
46.46

2.06
55.53

3.60
66.37

3.33
11.03
8.63
11.66
14.31
76.45
53.81
58.72

2.24
11.98
11.55
17.34
18.43
73.47
61.29
83.43

3.28
9.88
9.35
13.05
14.26
81.86
66.85
81.61

3.57
10.74
9.27
12.82
14.18
84.84
64.30
75.15

3.31
11.20
8.39
11.23
14.28
74.29
50.44
52.90

2.31
13.22
10.15
13.47
15.81
77.11
52.13
59.55

4.04
11.67
7.93
10.42
13.73
79.67
57.29
64.28

3.20
8.60
7.05
10.06
13.33
68.61
47.23
53.04

4.28
10.71
9.22
10.64
12.81
84.17
63.75
70.70

3.03
10.30
9.28
12.65
14.39
84.05
64.93
76.52

3.19
11.11
9.53
13.95
15.69
73.45
50.07
44.24

Structural Changes
New charters������������������������������������������
Institutions absorbed by mergers����������
Failed institutions�����������������������������������

31
179
140

25
78
25

3
81
88

1
11
22

2
9
5

3
27
6

11
25
45

7
36
30

0
48
15

6
29
9

4
14
35

PRIOR Full Years
(The way it was…)
Number of Institutions��������������������������� 2008
����������������������������������� 2006
����������������������������������� 2004

8,305
8,680
8,976

3,132
3,632
4,093

4,498
4,399
4,286

561
530
480

114
119
117

1,015
1,092
1,129

1,180
1,218
1,219

1,705
1,826
1,951

1,935
2,018
2,094

1,700
1,753
1,834

770
773
749

Total assets (in billions)������������������������� 2008
����������������������������������� 2006
����������������������������������� 2004

$13,841.2
11,861.9
10,107.4

$170.9
189.9
211.7

$1,354.7
1,290.0
1,199.6

$1,489.8
1,397.9
1,318.5

$10,825.8
8,984.0
7,377.6

$2,594.2
2,216.1
2,856.4

$3,745.9
2,911.4
2,177.1

$3,264.3
2,746.2
2,387.6

$1,057.2
859.8
768.2

$780.9
652.3
603.1

$2,398.7
2,476.1
1,315.1

Return on assets (%)����������������������������� 2008
����������������������������������� 2006
����������������������������������� 2004

0.03
1.28
1.28

0.25
0.92
1.00

0.24
1.16
1.19

-0.30
1.22
1.45

0.05
1.31
1.27

0.25
1.27
1.37

-0.14
1.31
1.34

0.29
1.10
0.88

0.57
1.76
1.55

0.51
1.23
1.26

-0.63
1.29
1.60

Net charge-offs to loans & leases (%)�� 2008
����������������������������������� 2006
����������������������������������� 2004

1.29
0.39
0.56

0.46
0.18
0.28

0.67
0.16
0.27

1.10
0.20
0.39

1.44
0.47
0.65

1.44
0.72
0.87

1.01
0.19
0.31

1.24
0.28
0.41

1.60
0.55
0.74

0.68
0.21
0.27

1.74
0.43
0.60

Noncurrent assets plus
OREO to assets (%)����������������������� 2008
����������������������������������� 2006
����������������������������������� 2004

1.91
0.54
0.53

1.66
0.73
0.74

2.16
0.59
0.56

2.46
0.52
0.51

1.80
0.53
0.53

1.20
0.52
0.58

2.02
0.33
0.35

1.93
0.57
0.55

2.28
1.05
0.81

1.80
0.62
0.61

2.33
0.56
0.51

Equity capital ratio (%)�������������������������� 2008
����������������������������������� 2006
����������������������������������� 2004

9.33
10.52
10.28

12.87
13.01
11.82

10.00
10.39
10.19

10.65
10.97
10.87

9.01
10.42
10.15

11.14
12.47
11.20

9.56
10.05
8.74

8.07
9.07
9.36

9.49
10.64
10.62

9.95
10.42
10.78

8.45
10.92
12.10

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�����������������

* 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

2010, Volume 4, No. 2

TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Concentration Groups*
March 31, 2010

All Insured
Institutions

Credit
Card
Banks

International Agricultural Commercial Mortgage
Banks
Banks
Lenders
Lenders

Consumer
Lenders

All Other All Other
Other
<$1
>$1
Specialized
<$1 Billion
Billion
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������������������������������������������������������

2.23
2.81
1.44
1.28
1.24
3.07
0.94
2.29
2.61
1.95
0.64
1.92

3.66
0.00
0.00
0.00
1.43
4.47
4.08
2.69
2.66
3.33
0.01
2.68

2.93
3.82
0.81
0.62
1.63
4.41
0.36
2.06
2.72
1.83
0.25
1.91

1.48
1.67
1.31
0.84
0.59
2.01
1.77
1.89
1.62
1.90
1.19
1.48

1.83
2.76
1.42
1.46
0.85
2.37
1.05
1.79
2.08
1.73
0.78
1.63

1.94
4.21
1.78
1.36
1.16
1.97
1.23
1.52
2.93
1.11
0.19
1.89

1.13
1.81
2.33
5.09
0.89
1.25
1.45
1.91
1.16
2.27
0.48
1.67

1.44
1.49
0.95
1.86
0.58
1.82
1.37
1.90
2.43
1.84
1.23
1.48

1.92
2.27
1.58
1.28
0.92
2.18
1.72
1.87
1.27
1.88
0.64
1.80

2.79
2.84
1.55
1.38
1.39
3.96
0.71
2.18
2.77
2.06
0.91
2.18

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������������������������������������������������������

7.55
16.82
4.17
4.62
1.72
10.17
3.11
2.27
3.09
1.37
1.65
5.45

5.67
0.00
0.00
0.00
6.07
5.94
3.99
3.18
3.14
3.94
0.02
3.12

10.69
17.91
4.81
4.18
1.86
17.91
5.72
2.37
3.10
2.11
2.35
7.02

2.39
10.82
2.61
3.27
0.68
1.60
2.44
0.76
0.63
0.76
0.93
1.98

6.08
17.16
3.87
4.41
1.15
5.70
2.54
1.37
2.98
1.04
1.66
4.85

4.86
16.02
3.18
3.93
1.99
4.96
1.71
1.20
3.37
0.59
0.25
4.60

1.38
10.47
2.91
0.19
0.83
1.39
0.93
1.63
1.43
1.72
1.11
1.52

2.45
5.43
2.31
2.75
1.23
2.23
1.33
0.91
1.92
0.80
1.38
2.04

2.35
6.90
2.52
3.95
0.88
1.88
2.10
0.70
0.90
0.70
0.80
2.04

10.39
16.37
5.70
6.28
2.16
15.17
2.60
1.26
3.19
0.86
1.32
6.98

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������������������������������������������������������

2.04
5.32
0.97
1.10
3.12
1.76
1.98
7.41
13.13
2.41
0.92
2.84

3.54
0.00
0.00
0.00
3.34
3.83
16.75
14.96
15.01
14.26
0.01
14.26

2.73
4.98
0.90
0.94
2.98
3.44
2.03
3.45
6.69
2.27
1.11
2.50

0.35
2.14
0.30
0.59
0.55
0.24
1.00
0.53
3.03
0.44
0.00
0.44

1.87
5.63
1.01
1.26
1.47
1.37
1.72
2.73
8.42
1.61
1.35
1.88

1.04
5.99
0.59
1.01
3.46
0.78
0.93
3.63
11.36
1.33
0.40
1.15

1.98
7.58
0.11
0.00
2.40
1.31
6.40
2.62
5.45
1.42
2.20
2.67

0.33
0.19
0.17
1.47
0.08
0.42
0.94
1.11
5.66
0.54
0.82
0.54

0.33
1.75
0.23
0.34
0.20
0.24
0.97
0.62
2.34
0.59
0.28
0.42

2.60
4.47
0.97
0.79
4.65
2.11
1.15
3.45
10.31
1.94
0.58
2.29

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 (plus unearned income)��������������

$4,400.5
418.0
1,090.4
214.9
659.6
1,887.4
1,187.6
1,380.7
717.0
663.7
536.5
7,505.3

$0.1
0.0
0.0
0.0
0.0
0.1
33.4
585.6
556.6
29.0
21.3
640.5

$543.0
9.0
31.5
41.3
134.2
277.6
196.0
208.5
53.6
154.9
165.7
1,113.2

$68.6
4.4
19.7
1.5
1.5
18.1
15.2
6.0
0.1
5.9
26.1
115.9

$2,110.6
308.9
799.9
128.7
223.4
607.1
568.3
231.3
39.3
192.0
154.2
3,064.4

$431.2
8.4
25.7
8.8
26.4
361.1
9.2
20.8
4.6
16.2
3.1
464.2

$18.4
0.5
0.7
0.1
9.6
7.4
4.0
49.8
16.2
33.5
0.7
72.9

$6.8
0.6
2.3
0.2
0.2
3.2
1.3
1.3
0.1
1.2
0.6
10.0

$51.1
3.4
12.5
1.1
2.2
28.3
7.0
7.4
0.1
7.3
5.1
70.6

$1,170.6
82.8
198.1
33.3
262.0
584.4
353.2
269.9
46.3
223.6
159.7
1,953.5

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��������������������������������������������������������������������
GNMA properties������������������������������������������������������

46,263.3
17,621.6
8,044.8
2,655.8
14,552.7
245.7
2,996.4

-28.2
0.0
0.0
0.0
0.1
0.0
0.0

3,127.0
29.0
160.0
784.0
1,219.0
0.0
750.0

699.7
242.0
206.6
33.9
163.7
52.1
1.6

30,928.4
15,492.6
6,571.7
1,204.1
6,697.4
169.4
782.8

3,005.4
410.6
168.6
29.9
2,070.8
1.6
344.6

40.0
17.5
5.4
0.3
16.7
0.1
0.0

65.0
23.1
16.5
3.3
20.1
1.9
0.0

489.1
120.8
134.4
24.0
195.9
13.6
0.4

7,937.0
1,286.0
781.5
576.4
4,169.0
7.0
1,117.0

* 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

2010, Volume 4, No. 2

Quarterly Banking Profile
TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Size Distribution
March 31, 2010

Geographic Regions*

Less than
$100
$1 Billion Greater
All Insured
$100
Million to
to
than
Institutions
Million
$1 Billion $10 Billion $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���������������������������������������������

2.23
2.81
1.44
1.28
1.24
3.07
0.94
2.29
2.61
1.95
0.64
1.92

1.96
2.65
1.73
1.90
1.20
2.27
1.89
2.29
2.42
2.29
1.19
1.89

1.77
2.64
1.57
1.36
0.85
1.94
1.49
1.77
2.31
1.73
0.92
1.70

1.63
2.72
1.29
1.45
0.80
1.81
1.12
2.04
2.29
1.94
0.75
1.56

2.49
2.92
1.43
1.20
1.30
3.49
0.83
2.32
2.62
1.96
0.59
2.02

1.82
3.52
1.58
1.29
0.71
2.00
1.56
2.58
2.65
2.33
0.55
1.94

2.52
2.18
1.52
1.33
1.51
3.73
0.84
2.21
2.50
2.05
0.43
2.08

2.12
2.70
1.43
1.22
1.24
3.06
0.76
1.68
2.32
1.50
0.71
1.70

2.54
3.66
1.58
1.80
1.21
3.59
1.07
2.70
3.02
2.21
1.17
2.22

1.92
2.67
1.26
1.17
0.92
2.53
1.01
1.43
0.99
1.65
0.77
1.67

2.25
3.07
1.08
1.08
1.27
3.31
0.59
2.10
2.30
1.97
0.23
1.74

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���������������������������������������������

7.55
16.82
4.17
4.62
1.72
10.17
3.11
2.27
3.09
1.37
1.65
5.45

3.07
10.21
3.15
2.91
1.38
2.23
2.62
1.10
1.91
1.09
0.98
2.65

4.15
13.05
3.17
3.37
1.18
2.75
2.39
0.81
1.50
0.76
1.12
3.64

5.51
16.72
3.57
4.16
1.38
4.21
2.44
1.39
2.13
1.10
1.31
4.59

8.97
18.59
5.04
5.08
1.79
12.58
3.30
2.37
3.13
1.45
1.74
5.94

5.00
18.80
3.87
3.32
0.88
4.75
3.21
3.04
3.37
1.80
1.28
4.03

9.17
16.33
4.57
7.14
2.10
12.92
2.36
1.62
2.93
0.87
0.99
6.52

8.42
17.11
4.39
4.48
1.75
13.40
2.90
1.45
3.00
1.01
2.00
5.99

9.30
16.87
4.84
5.03
2.27
14.14
2.92
2.39
3.04
1.39
1.20
6.18

4.98
10.81
2.69
3.98
1.02
5.58
1.70
0.83
1.22
0.63
1.42
3.90

6.59
23.68
4.21
4.49
0.88
7.66
5.00
2.30
2.62
2.11
2.74
5.07

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���������������������������������������������

2.04
5.32
0.97
1.10
3.12
1.76
1.98
7.41
13.13
2.41
0.92
2.84

0.51
2.29
0.44
0.59
0.48
0.32
1.09
0.70
4.88
0.64
0.00
0.61

0.79
2.61
0.47
0.58
0.66
0.56
1.17
1.48
7.80
1.04
0.46
0.86

1.72
6.08
1.01
1.25
1.07
0.88
1.49
3.10
8.94
1.14
0.53
1.75

2.46
6.16
1.22
1.19
3.48
2.14
2.17
7.98
13.30
2.66
1.00
3.40

1.10
5.41
0.90
0.81
0.83
0.69
3.14
12.28
14.71
5.31
0.60
4.09

2.75
5.24
1.07
1.05
4.73
2.27
1.53
5.28
12.65
1.90
0.37
2.73

2.25
6.42
1.12
1.20
2.22
2.30
2.26
3.00
8.53
1.45
2.28
2.35

2.14
4.23
0.67
0.88
4.06
1.98
1.78
10.28
18.39
2.16
0.71
3.27

1.21
3.23
0.56
0.81
1.64
0.87
0.99
2.03
4.58
0.93
0.64
1.21

2.17
8.00
1.34
1.69
2.69
2.02
1.83
4.03
6.58
2.47
0.47
2.34

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 (plus unearned income)�����

$4,400.5
418.0
1,090.4
214.9
659.6
1,887.4
1,187.6
1,380.7
717.0
663.7
536.5
7,505.3

$65.9
5.6
19.8
1.9
2.2
27.8
12.5
6.7
0.1
6.6
10.1
95.2

$704.1
90.9
269.5
32.2
38.7
239.7
112.8
42.1
2.5
39.6
38.4
897.3

$711.6
100.7
278.0
41.8
50.0
228.4
141.2
76.1
21.5
54.5
33.8
962.7

$2,918.9
220.8
523.0
139.1
568.7
1,391.5
921.1
1,255.8
692.9
563.0
454.3
5,550.1

$833.7
57.7
221.9
57.4
86.0
405.2
182.1
433.2
340.9
92.4
81.2
1,530.3

$1,081.6
133.0
247.7
34.7
193.6
456.4
275.7
232.8
84.6
148.2
103.1
1,693.2

$868.4
70.3
196.0
62.3
178.1
345.3
253.4
192.9
43.0
149.8
114.6
1,429.3

$645.9
55.9
153.7
18.1
117.3
277.0
175.7
235.9
143.6
92.3
109.8
1,167.3

$359.3
59.4
125.0
9.3
24.5
129.3
90.4
44.1
14.6
29.4
22.2
516.0

$611.6
41.8
146.2
33.1
60.1
274.2
210.3
241.8
90.3
151.5
105.6
1,169.3

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�����������������������������������������������������������
GNMA properties���������������������������������������������

46,263.3
17,621.6
8,044.8
2,655.8
14,552.7
245.7
2,996.4

1,061.4
367.6
294.4
35.3
341.5
21.1
1.7

12,295.9
6,113.7
2,823.0
429.4
2,778.3
150.2
7.8

10,232.8
5,568.0
2,065.5
402.1
1,972.9
52.9
175.3

22,673.2
5,572.3
2,862.0
1,789.1
9,460.0
21.4
2,811.5

3,693.0
1,064.1
828.5
250.5
1,357.6
15.9
167.4

13,639.5
5,840.7
1,899.7
471.7
5,186.8
35.3
220.5

9,797.5
2,684.4
1,828.0
368.7
3,454.2
31.7
1,426.6

7,560.0
2,625.3
1,302.3
494.0
1,977.6
45.8
1,117.9

4,862.8
2,418.3
1,055.7
143.4
1,137.5
90.1
17.9

6,710.5
2,988.8
1,130.5
927.6
1,439.0
26.8
46.1

* 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

2010, Volume 4, No. 2

TABLE VI-A. Derivatives, All FDIC-Insured Commercial Banks and State-Chartered Savings Banks
Asset Size Distribution
% Change
Less
$100
4th Quarter 3rd Quarter 2nd Quarter 1st Quarter
09Q1than $100 Million to
2009
2009
2009
2009
10Q1
Million
$1 Billion

$1 Billion
to $10
Greater than
Billion
$10 Billion

(dollar figures in millions;
1st Quarter
notional amounts unless otherwise indicated)
2010
ALL DERIVATIVE HOLDERS
Number of institutions reporting derivatives�����������������
1,146
1,130
1,175
1,214
1,170
Total assets of institutions reporting derivatives���������� $10,766,357 $10,568,276 $10,546,529 $10,593,193 $10,671,375
Total deposits of institutions reporting derivatives�������
7,281,570
7,341,195
7,183,905
7,097,228
6,983,343
Total derivatives������������������������������������������������������������� 218,074,225 213,563,342 210,008,291 208,656,901 206,742,719

-2.1
0.9
4.3
5.5

86
$6,228
5,180
223

677
$291,379
235,964
18,120

306
$897,508
682,198
98,455

77
$9,571,242
6,358,227
217,957,427

Derivative Contracts by Underlying Risk Exposure
Interest rate�������������������������������������������������������������������� 181,997,144 179,565,445 176,204,154 175,648,997 172,763,155
Foreign exchange*�������������������������������������������������������� 19,201,849
17,297,929
17,709,286 16,640,233 16,266,432
Equity�����������������������������������������������������������������������������
1,570,950
1,685,227
2,182,431
2,041,638
2,174,365
Commodity & other (excluding credit derivatives)��������
939,818
978,922
926,295
909,250
938,063
Credit������������������������������������������������������������������������������ 14,364,464 14,035,819 12,986,125
13,416,784 14,600,703
Total�������������������������������������������������������������������������������� 218,074,225 213,563,342 210,008,291 208,656,901 206,742,719

5.3
18.0
-27.8
0.2
-1.6
5.5

212
1
11
0
0
223

17,697
84
161
116
62
18,120

94,572
2,678
878
134
193
98,455

181,884,663
19,199,087
1,569,900
939,568
14,364,209
217,957,427

Derivative Contracts by Transaction Type
Swaps���������������������������������������������������������������������������� 136,341,268 142,022,036 139,477,065 137,993,983 135,835,552
Futures & forwards�������������������������������������������������������� 34,096,746 26,495,662 24,944,757 25,885,385 24,744,597
Purchased options���������������������������������������������������������
15,757,712
15,151,690 15,424,802 15,020,266 15,053,701
Written options��������������������������������������������������������������� 15,908,657
15,113,322 15,063,184 14,859,851 15,106,838
Total�������������������������������������������������������������������������������� 202,104,384 198,782,710 194,909,809 193,759,485 190,740,687

0.4
37.8
4.7
5.3
6.0

30
81
10
102
223

9,792
3,552
760
3,900
18,004

79,969
7,800
3,202
7,053
98,024

136,251,478
34,085,313
15,753,740
15,897,602
201,988,133

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�����������������������������������

94,822
1,431
-856
976
-121,491
141,273

96,997
9,671
1,236
1,623
-160,980
188,641

122,592
-5,037
-253
3,615
-234,357
266,208

123,696
-10,568
670
1,156
-474,635
523,242

134,105
-10,459
3,103
4,158
-959,080
1,031,185

-29.3
N/M
N/M
-76.5
N/M
-86.3

1
0
0
0
0
0

-8
0
3
8
0
0

89
-2
6
2
2
-1

94,740
1,433
-865
966
-121,493
141,275

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

84,018,163
33,334,943
24,119,801
11,091,990
2,440,019
1,328,830
320,739
220,441
83,990
287,748
177,250
31,220

80,979,650
33,638,337
26,141,316
10,416,223
2,448,723
1,343,778
312,066
227,854
81,647
261,429
223,654
34,250

78,128,617
33,977,577
26,620,986
9,674,124
2,405,751
1,325,262
358,462
301,995
82,835
237,860
233,829
43,612

74,833,456
35,928,119
28,371,872
9,490,043
2,293,453
1,193,852
343,416
291,182
75,716
252,705
211,329
45,443

70,402,282
37,299,179
30,000,656
9,234,171
2,162,670
1,056,327
348,774
286,171
82,844
279,748
206,173
41,546

19.3
-10.6
-19.6
20.1
12.8
25.8
-8.0
-23.0
1.4
2.9
-14.0
-24.9

53
13
19
0
0
0
3
1
0
0
0
0

3,410
7,280
2,444
27
2
0
29
67
0
85
17
0

18,939
27,991
38,161
1,527
61
0
130
364
1
53
41
0

83,995,761
33,299,659
24,079,177
11,090,436
2,439,956
1,328,830
320,577
220,010
83,989
287,610
177,193
31,220

57.3
83.6

66.8
80.6

86.2
89.2

0.1
0.1

0.4
0.3

1.3
0.9

46.8
101.2

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 (%)��������������������������������������������������

41.2
88.9

45.9
83.3

130.2

129.2

140.9

147.3

175.3

0.2

0.7

2.2

148.0

Credit losses on derivatives***����������������������������������

103.6

767.1

605.3

384.7

217.1

-52.3

0.0

3.5

0.4

99.7

HELD FOR TRADING
Number of institutions reporting derivatives�����������������
Total assets of institutions reporting derivatives����������
Total deposits of institutions reporting derivatives�������

195
8,950,711
6,096,651

196
8,873,819
6,145,431

207
8,911,543
6,014,547

204
8,911,914
5,990,076

199
9,016,071
5,886,779

-2.0
-0.7
3.6

10
756
614

64
27,257
21,671

67
279,526
211,387

54
8,643,172
5,862,979

Derivative Contracts by Underlying Risk Exposure
Interest rate�������������������������������������������������������������������� 180,117,242 177,717,171 174,199,745 173,339,084 170,603,660
Foreign exchange���������������������������������������������������������� 17,462,255 16,437,639 15,510,657 15,051,809 14,759,077
Equity�����������������������������������������������������������������������������
1,563,707
1,677,767
2,175,796
2,034,228
2,162,149
Commodity & other��������������������������������������������������������
932,983
974,849
924,183
906,325
935,634
Total�������������������������������������������������������������������������������� 200,076,187 196,807,425 192,810,380 191,331,447 188,460,521

5.6
18.3
-27.7
-0.3
6.2

25
0
0
0
25

884
0
1
0
885

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

304
3,906
965
3,004
8,178

-1,208
2,560
144
417
1,914

5,436
-1,535
153
1,648
5,702

900
2,132
-92
2,320
5,260

9,265
2,436
854
-2,358
10,197

-96.7
60.3
13.0
N/M
-19.8

0
0
0
0
0

0
0
0
0
0

17
6
1
0
24

287
3,900
964
3,004
8,154

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

6.6
74.0

1.6
100.2

4.7
88.1

4.0
96.9

7.6
138.0

0.0
0.0

0.0
0.0

0.7
-14.2

6.7
72.9

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

1,028
10,340,778
7,031,798

1,010
10,212,224
7,098,524

1,048
10,199,835
6,955,097

1,086
10,216,757
6,847,472

1,048
10,304,121
6,730,432

-1.9
0.4
4.5

76
5,472
4,566

615
266,237
215,652

265
752,613
570,211

72
9,316,455
6,241,369

Derivative Contracts by Underlying Risk
Exposure
Interest rate��������������������������������������������������������������������
Foreign exchange����������������������������������������������������������
Equity�����������������������������������������������������������������������������
Commodity & other��������������������������������������������������������
Total notional amount����������������������������������������������������

1,879,902
134,216
7,243
6,835
2,028,197

1,848,275
115,478
7,459
4,073
1,975,285

2,004,409
86,272
6,635
2,112
2,099,429

2,309,913
107,791
7,410
2,924
2,428,038

2,159,495
106,027
12,216
2,429
2,280,166

-12.9
26.6
-40.7
181.4
-11.1

187
1
11
0
198

16,813
29
161
116
17,120

43,886
451
644
90
45,071

1,819,016
133,735
6,428
6,629
1,965,808

50,687 180,065,647
1,989
17,460,266
234
1,563,472
44
932,940
52,953 200,022,325

All line items are reported on a quarterly basis. 
N/M - 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 more
in total assets.

FDIC Quarterly

12

2010, Volume 4, No. 2

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

(dollar figures in millions)
Assets Securitized and Sold with Servicing Retained or with
Recourse or Other Seller-Provided Credit Enhancements

1st
Quarter
2010

4th
Quarter
2009

3rd
Quarter
2009

2nd
Quarter
2009

1st
Quarter
2009

% Change Less than
$100
$1 Billion Greater
09Q1$100
Million to
to $10
than $10
10Q1
Million $1 Billion Billion
Billion

Number of institutions reporting securitization activities�����������������������������������������
132
143
143
140
132
Outstanding Principal Balance by Asset Type
1-4 family residential loans�������������������������������������������������������������������������������� $1,194,691 $1,209,474 $1,225,694 $1,222,193 $1,230,735
Home equity loans���������������������������������������������������������������������������������������������
167
5,947
6,205
6,594
6,595
Credit card receivables�������������������������������������������������������������������������������������
16,133
363,486
391,417
397,918
399,113
Auto loans����������������������������������������������������������������������������������������������������������
600
7,182
8,277
10,266
11,862
Other consumer loans���������������������������������������������������������������������������������������
5,610
24,692
25,335
26,006
26,692
Commercial and industrial loans�����������������������������������������������������������������������
4,127
7,649
8,436
9,019
8,317
All other loans, leases, and other assets����������������������������������������������������������
192,868
198,849
192,086
193,377
197,699
Total securitized and sold������������������������������������������������������������������������������������������ 1,414,197 1,817,280 1,857,449 1,865,374 1,881,015

0.0

19

61

-2.9
-97.5
-96.0
-94.9
-79.0
-50.4
-2.4
-24.8

$232
14
0
0
0
1
4
252

$931
0
861
0
0
10
41
1,843

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���

-17.7
-98.8
-98.1
-99.3
-83.4
-74.1
-14.6
-86.9
-59.2

2
14
0
0
0
0
0
17
1

11
0
267
0
0
0
5
282
0

55
0
0
6
0
86
0
147
2

5,098
0
463
0
237
9
253
6,060
159

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�����������������������������������������������������������������������

Assets Sold with Recourse and Not Securitized

23

29

$2,045 $1,191,483
0
153
0
15,272
79
521
0
5,610
594
3,522
143
192,681
2,861 1,409,242

5,166
14
730
6
237
95
257
6,506
162

5,780
1,023
134,193
637
1,410
225
287
143,555
387

6,115
1,006
136,043
745
1,434
274
333
145,950
358

6,058
1,063
129,373
722
1,399
184
299
139,100
378

6,279
1,120
39,100
912
1,429
367
301
49,509
397

3.9
0.5
1.5
1.2
3.3
0.3
2.2
3.6

4.4
1.3
2.7
2.3
4.0
2.3
3.5
4.0

4.6
1.3
2.9
2.4
3.6
2.9
1.2
3.9

4.3
0.8
2.6
2.2
2.9
2.6
1.9
3.7

4.1
1.1
3.0
1.9
3.1
3.1
0.6
3.5

4.0
0.0
0.0
0.0
0.0
0.0
0.0
3.7

1.1
0.0
2.4
0.0
0.0
16.8
0.0
1.8

2.5
0.0
0.0
0.6
0.0
1.5
0.4
2.1

3.9
0.5
1.4
1.3
3.3
0.0
2.2
3.6

8.5
0.5
0.8
0.3
2.7
0.1
7.5
8.3

7.9
2.0
3.0
0.2
3.6
1.0
4.3
6.4

7.5
1.8
2.6
0.3
3.6
1.2
3.8
5.9

6.6
0.9
2.9
0.2
3.3
1.3
1.6
5.2

5.7
1.4
3.0
0.2
3.5
3.1
1.1
4.6

1.6
0.0
0.0
0.0
0.0
0.0
9.5
1.7

0.4
0.0
3.7
0.0
0.0
0.0
0.0
1.9

3.2
0.0
0.0
0.1
0.0
0.7
0.6
2.5

8.6
0.5
0.7
0.4
2.7
0.0
7.5
8.3

0.2
0.2
2.2
0.3
0.4
0.0
0.1
0.2

1.0
1.8
10.2
2.5
1.0
13.9
0.1
2.8

0.7
1.4
7.6
1.9
0.7
10.0
0.0
2.1

0.5
0.9
4.8
1.1
0.5
6.9
0.0
1.4

0.2
0.6
2.1
0.7
0.2
2.6
0.0
0.6

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
3.0
0.0
0.0
0.0
0.0
1.4

0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0

0.2
0.2
2.1
0.4
0.4
0.0
0.1
0.2

0
4,831
4

316
62,235
894

396
73,401
930

134
68,128
451

165
77,212
450

-100.0
-93.7
-99.1

0
0
0

0
53
2

0
0
1

0
4,778
0

0
0
0

1
789
0

2
788
0

4
594
0

5
556
0

-100.0
-100.0
0.0

0
0
0

0
0
0

0
0
0

0
0
0

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�����������������������������������������������������������������������������������

818

826

820

826

819

-0.1

158

501

115

44

62,493
40
669
48,372
111,574

66,985
908
2,654
48,757
119,304

67,999
1,024
2,844
47,971
119,839

70,504
1,159
3,195
47,560
122,418

70,061
1,348
6,028
46,438
123,875

-10.8
-97.0
-88.9
4.2
-9.9

1,066
0
1
0
1,067

9,401
20
43
95
9,559

4,212
3
15
44
4,273

47,813
17
610
48,233
96,674

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�������������������������������������������������������������������������������������������������

13,701
21
62
10,450
24,233

16,541
100
1,934
10,412
28,986

15,418
104
2,003
10,136
27,661

15,836
112
2,224
10,011
28,183

15,421
183
4,995
9,790
30,389

-11.2
-88.5
-98.8
6.7
-20.3

110
0
1
0
111

1,237
7
32
66
1,342

2,433
1
15
5
2,455

9,920
12
14
10,379
20,325

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

74
6,410

57
4,296

60
4,872

60
3,812

56
2,134

32.1
200.4

26
10

33
97

7
37

8
6,266

Total unused liquidity commitments�������������������������������������������������������������������������

846

545

327

475

936

-9.6

0

0

0

846

6,034,911

6,010,532

5,977,515 5,878,337

5,681,694

6.2

3,968

119,605

7,268

15,967

17,658

20,210

22,981

-68.4

5

0

68

7,195

80,156

170,373

182,740

210,026

273,542

-70.7

0

0

1,272

78,884

4,844
13
3.3

8,019
1,615
15.9

5,995
1,163
16.2

10,845
-142
15.8

5,946
2,124
7.7

-18.5
-99.4

7
1
0.8

180
2
1.4

177
2
1.9

4,480
8
3.9

Support for Securitization Facilities Sponsored by Other Institutions

Other
Assets serviced for others*���������������������������������������������������������������������������������������
Asset-backed commercial paper conduits
Credit exposure to conduits sponsored by institutions and others������������������
Unused liquidity commitments to conduits sponsored by institutions
		
and others��������������������������������������������������������������������������������������������������
Net servicing income (for the quarter)����������������������������������������������������������������������
Net securitization income (for the quarter)���������������������������������������������������������������
Total credit exposure to Tier 1 capital (%)**�������������������������������������������������������������

94,369 5,816,968

* 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

2010, Volume 4, No. 2

Insurance Fund Indicators
Insured Deposits Grow by 1.3 Percent
■	 DIF Reserve Ratio Rises 1 Basis Point to −0.38 Percent
■	 Forty-one Institutions Fail during First Quarter
■	

Total assets of the nation’s 7,932 FDIC-insured
commercial banks and savings institutions increased by
$248.6 billion (1.9 percent) during first quarter 2010,
funded primarily by an increase in nondeposit liabilities.
Total deposits decreased by $28.6 billion, with domestic
deposits almost flat, decreasing by $5.1 billion (0.1
percent), and foreign office deposits declining by $23.5
billion (1.5 percent). Domestic noninterest-bearing
deposits decreased by $26.4 billion (1.7 percent), and
domestic time deposits decreased by $116.1 billion
(4.9 percent). Savings deposits and interest-bearing
checking accounts increased by $137.4 billion (3.6
percent) during the quarter. The share of assets funded
by domestic deposits declined from 58.7 percent to 57.6
percent, and the share funded by foreign office deposits
decreased from 11.7 percent to 11.3 percent. Federal
Home Loan Bank (FHLB) advances as a percentage of
total assets continued to decline, from 4.1 percent to
3.6 percent on March 31, 2010, the smallest percentage
on record (2001 to present).

Since September 30, 2009, insured deposit estimates
have been based on the temporary $250,000 deposit
insurance coverage limit.2 Estimated insured deposits
(including U.S. branches of foreign banks) rose by
$70.0 billion (1.3 percent) during first quarter 2010,
down slightly from the previous quarter’s 1.7 percent
growth. For the most recent 12-month period, insured
deposits increased by 13.1 percent ($631.5 billion),
which includes the effect of the temporary increase in
FDIC deposit insurance coverage. For institutions
reporting at December 31, 2009 and March 31, 2010,
insured deposits increased at 5,027 institutions (63
percent), decreased at 2,876 institutions (36 percent),
and remained unchanged at 26 institutions.
The Deposit Insurance Fund (DIF) increased by $145
million during the first quarter to a negative $20.7
billion (unaudited). This was the first increase in the
fund’s balance since first quarter 2008. Accrued assessment income added $3.3 billion to the DIF during the
first quarter. The fund received $62 million from interest on securities and $149 million from net unrealized
gains and losses on available-for-sale securities. The
biggest reduction in the DIF came from a $3.0 billion
increase in additional provisions for bank failures. Operating and other expenses, net of other revenue, reduced
the fund by $323 million.

Brokered deposits decreased by $10.0 billion (1.6
percent) during the first quarter and decreased by
$164.4 billion (21.2 percent) during the previous 12
months. Reciprocal brokered deposits decreased by
$639.7 million (1.9 percent) to $33.3 billion during the
three months ending March 31, 2010. Since the second
quarter of 2009, the portion of brokered deposits
exceeding 10 percent of an institution’s domestic deposits has been included in the formula used to price
deposit insurance.1

The small increase in the DIF combined with average
insured deposit growth raised the first quarter reserve
ratio to −0.38 percent, 1 basis point higher than the
previous quarter, but the reserve ratio is 65 basis points

For an institution in Risk Category I, the initial base assessment rate
is adjusted using the adjusted brokered deposit ratio. This ratio will
exceed zero if an institution’s brokered deposits are greater than 10
percent of its domestic deposits and its total assets are more than 40
percent greater than they were four years previously. Certain reciprocal brokered deposits are excluded from the calculation of the adjusted
brokered deposit ratio. For an institution in any other risk category, the
initial base assessment rate is increased if the institution’s ratio of
brokered deposits to domestic deposits is greater than 10 percent.
Reciprocal brokered deposits are included in the amount of brokered
deposits for purposes of computing this ratio.

1

FDIC Quarterly

On May 20, 2009, the President signed the Helping Families Save
Their Homes Act of 2009, which extended the temporary deposit
insurance coverage limit increase to $250,000 for deposits other than
retirement accounts (from the permanent limit of $100,000) through
the end of 2013. The legislation also eliminated the provision in the
Emergency Economic Stabilization Act of 2009 that prevented the FDIC
from considering this temporary increase in deposit insurance coverage for purposes of setting deposit insurance assessments. Beginning
September 30, 2009, insured deposit estimates are based on the
$250,000 coverage limit.

2

14

2010, Volume 4, No. 2

Quarterly Banking Profile
lower than a year earlier. The fund’s reserve ratio for
March 31, 2010 (−0.38 percent) is the second lowest
on record. Forty-one FDIC-insured institutions with
combined assets of $22.1 billion failed during first quarter 2010, at an estimated cost of $6.3 billion. One
hundred and sixty FDIC-insured institutions with
combined assets of $182.4 billion failed during the
latest 12 months, at an estimated cost of $39.6 billion.
Author:

FDIC Quarterly

Kevin Brown, Sr. Financial Analyst
Division of Insurance and Research
(202) 898-6817

15

2010, Volume 4, No. 2

Table I-B. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)
Beginning Fund Balance�����

1st
Quarter
2010*

4th
Quarter
2009*

3rd
Quarter
2009

2nd
Quarter
2009

1st
Quarter
2009

Deposit Insurance Fund
4th
3rd
2nd
Quarter
Quarter
Quarter
2008
2008
2008

1st
Quarter
2008

4th
Quarter
2007

3rd
Quarter
2007

2nd
Quarter
2007

1st
Quarter
2007

-$20,862

-$8,243

$10,368

$13,007

$17,276

$34,588

$45,217

$52,843

$52,413

$51,754

$51,227

$50,745

$50,165

3,278

3,042

2,965

9,095

2,615

996

881

640

448

239

170

140

94

62

76

176

240

212

277

526

651

618

585

640

748

567

0
345

0
379

732
328

521
298

136
266

302
290

473
249

0
256

0
238

0
262

0
243

0
248

0
239

3,021

17,766

21,694

11,615

6,637

19,163

11,930

10,221

525

39

132

-3

-73

22

2,721

308

375

2

15

16

1

0

-2

24

1

4

149
145

-313
-12,619

-770
-18,611

-957
-2,639

-331
-4,269

551
-17,312

-346
-10,629

1,559
-7,626

127
430

138
659

68
527

-162
482

81
580

Ending Fund Balance�����������
Percent change from
four quarters earlier���������

-20,717

-20,862

-8,243

10,368

13,007

17,276

34,588

45,217

52,843

52,413

51,754

51,227

50,745

NM

NM

NM

-77.07

-75.39

-67.04

-33.17

-11.73

4.13

4.48

3.52

3.36

3.15

Reserve Ratio (%)�����������������

-0.38

-0.39

-0.16

0.22

0.27

0.36

0.76

1.01

1.19

1.22

1.22

1.21

1.20

5,462,644

5,392,677

5,304,695

4,817,614

4,831,129

4,775,133

4,558,937

4,468,240

4,439,491

4,292,940

4,243,129

4,235,314

4,245,447

13.07

12.93

16.36

7.82

8.82

11.23

7.44

5.50

4.57

3.34

3.49

4.82

6.08

7,709,420

7,714,167

7,564,731

7,571,019

7,567,128

7,529,934

7,244,167

7,036,919

7,078,340

6,922,406

6,748,520

6,699,156

6,702,779

1.88

2.45

4.43

7.59

6.91

8.78

7.34

5.04

5.60

4.25

4.07

3.91

5.71

7,942

8,022

8,109

8,205

8,257

8,315

8,394

8,462

8,505

8,545

8,570

8,625

8,661

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

Estimated Insured
Deposits**������������������������������
Percent change from
four quarters earlier���������
Domestic Deposits���������������
Percent change from
four quarters earlier���������
Number of institutions
reporting�������������������������

DIF Reserve Ratios

Deposit Insurance Fund Balance
and Insured Deposits
($ Millions)

Percent of Insured Deposits
1.20

1.21

1.22

1.22

1.19
1.01

3/07
6/07
9/07
12/07
3/08
6/08
9/08
12/08
3/09
6/09
9/09
12/09
3/10

0.76

0.36

0.27

0.22
-0.16 -0.39 -0.38

3/07

9/07

3/08

9/08

3/09

9/09

3/10

DIF
Balance

DIF-Insured
Deposits

50,745
51,227
51,754
52,413
52,843
45,217
34,588
17,276
13,007
10,368
-8,243
-20,862
-20,717

4,245,447
4,235,314
4,243,129
4,292,940
4,439,491
4,468,240
4,558,937
4,775,133
4,831,129
4,817,614
5,304,695
5,392,677
5,462,644

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

2010****

2009****

2009

2008

2007

2006

2005

775
$431,189

305
$220,047

702
$402,782

252
$159,405

76
$22,189

50
$8,265

52
$6,607

41
$22,140

21
$9,498

140
$169,709

25
$371,945

3
$2,615

0
$0

0
$0

0
$0

8
$1,917,482

8
$1,917,482

5
$1,306,042

0
0

0
0

0
0

* Preliminary unaudited fund data, which are subject to change.
NM - Not meaningful
** The Emergency Economic Stabilization Act of 2008 directs the FDIC not to consider the temporary coverage increase to $250,000 in setting assessments. Therefore, we do not include
the additional insured deposits in calculating the fund reserve ratio, which guides our assessment planning, from fourth quarter 2008 through second quarter 2009. The Helping Families
Save Their Homes Act of 2009 eliminated the prohibition against the FDIC’s taking the temporary increase into account when setting assessments. Beginning in the third quarter of 2009,
estimates of insured deposits include the temporary coverage increase to $250,000.
***Assisted institutions represent five institutions under a single holding company that received assistance in 2008, and eight institutions under a different single holding company that
received assistance in 2009.
****Through March 31.

FDIC Quarterly

16

2010, Volume 4, No. 2

Quarterly Banking Profile
Table III-B. Estimated FDIC-Insured Deposits by Type of Institution
(dollar figures in millions)
Number of
Institutions

March 31, 2010
Commercial Banks and Savings Institutions

Total
Assets

Domestic
Deposits*

Est. Insured
Deposits

FDIC-Insured Commercial Banks�����������������������������������������������
		 FDIC-Supervised�������������������������������������������������������������������
		 OCC-Supervised��������������������������������������������������������������������
		 Federal Reserve-Supervised�������������������������������������������������

6,772
4,485
1,446
841

$12,086,503
1,952,489
8,471,255
1,662,760

$6,787,692
1,482,631
4,305,510
999,551

$4,649,672
1,185,569
2,826,502
637,601

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

1,160
755
405

1,270,122
950,168
319,954

904,055
667,393
236,662

803,066
596,399
206,667

Total Commercial Banks and Savings Institutions����������������������

7,932

13,356,625

7,691,747

5,452,738

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

10

28,018

17,673

9,906

Total FDIC-Insured Institutions���������������������������������������������������� ..

7,942

13,384,643

7,709,420

5,462,644

* Excludes $1.51 trillion in foreign office deposits, which are uninsured.

Table IV-B. Distribution of Institutions and Domestic Deposits Among Risk Categories
Quarter Ending December 31, 2009
(dollar figures in billions)

Risk Category I

Risk Category II
Risk Category III
Risk Category IV

Annual
Rate in
Basis Points*
7.00–12.00
12.01–14.00
14.01–15.99
16.00–24.00
17.00–22.00
22.01–43.00
27.00–32.00
32.01–58.00
40.00–45.00
45.01–77.50

Number of
Institutions
1,812
1,629
2,381
259
906
307
358
187
107
76

Percent
of Total
Institutions
22.59
20.31
29.68
3.23
11.29
3.83
4.46
2.33
1.33
0.95

Domestic
Deposits
619
2,129
1,909
349
1,948
447
101
125
36
52

Percent
of Total
Domestic
Deposits
8.02
27.60
24.75
4.53
25.25
5.79
1.31
1.61
0.46
0.68

Note: Institutions are categorized based on supervisory ratings, debt ratings and financial data as of December 31, 2009. Rates do not reflect
the application of assessment credits. See Notes to Users for further information on risk categories and rates.
* Assessment rates with a given risk category vary for several reasons, see 12 CFR Part 327
http://www.fdic.gov/deposit/insurance/initiative/09FinalAD35.pdf

FDIC Quarterly

17

2010, Volume 4, No. 2

TEMPORARY LIQUIDITY GUARANTEE PROGRAM
Debt Guarantee Program Ended October 31, 2009
■	 Transaction Account Guarantee Program Extended to December 31, 2010
■	 $279 Billion Guaranteed in Transaction Accounts over $250,000
■	 $305 Billion Outstanding in Debt Guarantee Program
■	

ning in second quarter 2009.2 The Board adopted a
final rule on October 20, 2009, that allowed the DGP
to expire on October 31, 2009.3

FDIC Responds to Market Disruptions with TLGP
The FDIC Board approved the Temporary Liquidity
Guarantee Program (TLGP) on October 13, 2008,
as major disruptions in credit markets blocked access
to liquidity for financial institutions.1 The TLGP
improved access to liquidity through two programs: the
Transaction Account Guarantee Program (TAGP),
which fully guarantees noninterest-bearing transaction
deposit accounts above $250,000, regardless of dollar
amount; and the Debt Guarantee Program (DGP),
which guarantees eligible senior unsecured debt issued
by eligible institutions.

A final rule extending the TAGP six months, to June
30, 2010, was adopted on August 26, 2009. Entities
participating in the TAGP had the opportunity to opt
out of the extended program. Depository institutions
that remain in the extended program are subject to
increased fees that are adjusted to reflect the institution’s risk.4
On April 13, 2010, the FDIC adopted an interim final
rule extending the TAGP for another six months,
through December 31, 2010. Under the rule, the FDIC
may extend the program for an additional 12 months
without further rulemaking.5

All insured depository institutions were eligible to
participate in the TAGP. Institutions eligible for participation in the DGP were insured depository institutions,
U.S. bank holding companies, certain U.S. savings and
loan holding companies, and other affiliates of insured
depository institutions that the FDIC designated as
eligible entities.

Program Funded by Industry Fees and Assessments
The TLGP does not rely on taxpayer funding or the
Deposit Insurance Fund. Both the TAGP and the DGP
are paid for by direct user fees. Institutions participating
in the TAGP through year-end 2009 were assessed
an annual fee of 10 basis points. Fees for qualifying
noninterest-bearing transaction accounts guaranteed
between January 1, 2010, and June 30, 2010, are based
on the participating entity’s risk category assignment
under the FDIC’s risk-based premium system. Annualized fees are 15, 20, or 25 basis points, depending on an
institution’s risk category.

FDIC Extends Guarantee Programs
Although financial markets improved significantly in
the first half of 2009, portions of the industry were still
affected by the recent economic turmoil. To facilitate
the orderly phase-out of the TLGP, and to continue
access to FDIC guarantees where they were needed, the
FDIC Board extended both the DGP and TAGP.
On March 17, 2009, the Board of Directors of the FDIC
voted to extend the deadline for issuance of guaranteed
debt from June 30, 2009, to October 31, 2009, and
extended the expiration date of the guarantee to the
earlier of maturity of the debt or December 31, 2012,
from June 30, 2012. The FDIC imposed a surcharge on
debt issued with a maturity of one year or more begin-

Fees for participation in the DGP were based on the
maturity of debt issued and ranged from 50 to 100 basis
points (annualized). A surcharge was imposed on debt
issued with a maturity of one year or greater after April
1, 2009. For debt that was not issued under the extenSee http://www.fdic.gov/news/board/Mar1709rule.pdf
See http://www.fdic.gov/regulations/laws/federal/2009/09finalAD37
Oct23.pdf.
4
See http://www.fdic.gov/news/board/aug26no3.pdf.
5
See http://www.fdic.gov/news/news/press/2010/pr10075.html.
2

The FDIC invoked the systemic risk exception pursuant to section
141 of the Federal Deposit Improvement Act of 1991, 12 U.S.C
1823(c)(4) on October 13, 2008. For further information on the TLGP,
see http://www.fdic.gov/regulations/resources/TLGP/index.html.

1

FDIC Quarterly

3

18

2010, Volume 4, No. 2

Quarterly Banking Profile
sion, that is, debt issued on or before June 30, 2009, and
maturing on or before June 30, 2012, surcharges were
10 basis points (annualized) on debt issued by insured
depository institutions and 20 basis points (annualized)
on debt issued by other participating entities. For debt
issued under the extension, that is, debt issued after
June 30, 2009, or debt that matures after June 30, 2012,
surcharges were 25 basis points (annualized) on debt
issued by insured depository institutions and 50 basis
points (annualized) on debt issued by other participating entities. As of March 31, 2010, fees totaling $10.4
billion had been assessed under the DGP.

$305 Billion in FDIC-Guaranteed Debt Was
Outstanding at March 31, 2010
Seventy-nine financial entities—49 insured depository
institutions and 30 bank and thrift holding companies
and nonbank affiliates—had $305 billion in guaranteed
debt outstanding at the end of first quarter 2010. Some
banking groups issued FDIC-guaranteed debt at both
the subsidiary and holding company level, but most
guaranteed debt was issued by holding companies or
nonbank affiliates of depository institutions. Bank and
thrift holding companies and nonbank affiliates issued
81 percent of FDIC-guaranteed debt outstanding at
March 31, 2010.

A Majority of Eligible Entities Have Chosen to
Participate in the TLGP

Debt outstanding at March 31, 2010, had longer term
at issuance, compared to debt outstanding at year-end
2008. Less than 1 percent of debt outstanding matures
in 180 days or less, compared to 49 percent at year-end
2008; and 79 percent matures more than two years after
issuance, compared to 39 percent at December 31,
2008. Among types of debt instruments, 91 percent
was in medium-term notes, compared to 44 percent at
year-end. The share of outstanding debt in commercial
paper fell to less than 0.1 percent from 43 percent at
year-end 2008.

Almost 80 percent of FDIC-insured institutions opted
in to the TAGP extension through June 30, 2010.
More than half of all eligible entities elected to opt in
to the DGP. Lists of institutions that opted out of the
guarantee programs are posted at http://www.fdic.gov/
regulations/resources/TLGP/optout.html.

$279 Billion in Transaction Accounts over $250,000
Guaranteed
According to first quarter 2010 Call and Thrift Financial Reports, insured institutions reported 305,302
noninterest-bearing transaction accounts over
$250,000, about half the number of accounts reported
at year-end 2009. These deposit accounts totaled $356
billion, of which $279 billion was guaranteed under the
TAGP. More than 5,500 FDIC-insured institutions
reported noninterest-bearing transaction accounts over
$250,000 in value.

Author:

Katherine Wyatt
Chief, Financial Analysis Section
Division of Insurance and Research
(202) 898-6755

Table I-C. Participation in Temporary Liquidity Guarantee Program
Total
Eligible Entities

March 31, 2010
Transaction Account Guarantee Program Extension to June 30, 2010
Depository Institutions with Assets <= $10 Billion��������������������������������������������������
Depository Institutions with Assets > $10 Billion����������������������������������������������������
		 Total Depository Institutions*����������������������������������������������������������������������������
Debt Guarantee Program
Depository Institutions with Assets <= $10 Billion��������������������������������������������������
Depository Institutions with Assets > $10 Billion����������������������������������������������������
		 Total Depository Institutions*����������������������������������������������������������������������������
Bank and Thrift Holding Companies and Non-Insured Affiliates���������������������������
		 All Entities����������������������������������������������������������������������������������������������������������
* Depository institutions include insured branches of foreign banks (IBAs).

FDIC Quarterly

19

Number
Opting In

Percent
Opting In

7,835
107
7,942

6,258
67
6,325

79.9%
62.6%
79.6%

7,835
107
7,942
6,071
14,013

4,161
96
4,257
3,421
7,678

53.1%
89.7%
53.6%
56.3%
54.8%

2010, Volume 4, No. 2

Table II-C. Cap on FDIC-Guaranteed Debt for Opt-In Entities
Opt-In Depository Institutions
with no Senior Unsecured
Debt at 9/30/2008
2% Liabilities
as of
Number
9/30/2008

Opt-In Entities with Senior Unsecured
Debt Outstanding at 9/30/2008
Debt Amount
as of
Number
9/30/2008
Initial Cap

March 31, 2010
(dollar figures in millions)
Depository Institutions with Assets
<= $10 Billion*������������������������������������
Depository Institutions with Assets
> $10 Billion*��������������������������������������
Bank and Thrift Holding Companies,
Noninsured Affiliates�������������������������������
Total���������������������������������������������������������

Total
Entities

Total Initial
Cap

114

$3,507

$4,384

4,047

$31,211

4,161

$35,595

39

269,228

336,535

57

24,392

96

360,927

83
236

397,727
670,462

497,158
838,078

3,338
7,442

N/A
55,603

3,421
7,678

497,158
893,681

* Depository institutions include insured branches of foreign banks (IBAs).

N/A - Not applicable

Table III-C. Transaction Account Guarantee Program
Mar. 31,
2009

(dollar figures in millions)
Number of Noninterest-Bearing Transaction Accounts
over $250,000��������������������������������������������������������������
Amount in Noninterest-Bearing Transaction .Accounts
over $250,000��������������������������������������������������������������
Amount Guaranteed����������������������������������������������������������

June 30,
2009

Sep. 30,
2009

Dec. 31,
2009

Mar. 31,
2010

% Change
09Q4-10Q1

586,910

681,429

646,997

687,741

305,302

-55.6%

$854,934
$708,207

$903,762
$733,405

$926,401
$764,652

$1,007,010
$835,074

$355,800
$279,475

-64.7%
-66.5%

Table IV-C. Debt Outstanding in Guarantee Program
March 31, 2010
(dollar figures in millions)
Insured Depository Institutions
Assets <= $10 Billion�������������������������������������������������������
Assets > $10 Billion���������������������������������������������������������
Bank and Thrift Holding Companies,
Noninsured Affiliates�������������������������������������������������������������
All Issuers�����������������������������������������������������������������������

Number

Debt Outstanding

Debt Outstanding
Share of Cap

Cap1 for Group

32
17

$1,593
55,881

$2,852
210,244

55.8%
26.6%

30
79

247,903
305,376

387,487
600,582

64.0%
50.8%

The amount of FDIC-guaranteed debt that can be issued by each eligible entity, or its “cap,” is based on the amount of senior unsecured debt outstanding as of
­ eptember 30, 2008. The cap for a depository institution with no senior unsecured debt outstanding at September 30, 2008, is set at 2 percent of total liabilities.
S
See http://www2.fdic.gov/qbp/2008dec/tlgp2c.html for more information.
1

Table V-C. Fees Assessed Under TLGP
(dollar figures in millions)
Fourth Quarter 2008��������������������������������������������������������������
First Quarter 2009�����������������������������������������������������������������
Second Quarter 2009������������������������������������������������������������
Third Quarter 2009����������������������������������������������������������������
Fourth Quarter 2009��������������������������������������������������������������
First Quarter 2010**

Debt Guarantee Program
Fees Assessed
Surcharges
Total Fee Amount
$3,437
$3,437
3,433
3,433
1,413
385
1,797
691
280
971
503
207
709
14
14

Total���������������������������������������������������������������������������������

$9,491

$872

Transaction Account
Guarantee Program*
Fees Collected
90
179
182
188
207

$10,363

$846

* Pro-rated payment in arrears.
** A review of data systems led us to recognize a nominal fee amount that had been dropped in error from previously reported amounts.

Table VI-C. Term at Issuance of Debt Instruments Outstanding
March 31, 2010
(dollar figures in millions)
Term at Issuance
90 days or less��������������������������������������
91-180 days�������������������������������������������
181-364 days�����������������������������������������
1-2 years�����������������������������������������������
Over 2-3 years��������������������������������������
Over 3 years������������������������������������������
Total������������������������������������������������
Share of Total����������������������������������������

FDIC Quarterly

Interbank
Other
Commercial Eurodollar
Medium
Interbank
Paper
Deposits Term Notes Deposits
$0
0
0
0
0
1
1
0.0%

$0
0
0
0
0
0
0
0.0%

$0
0
0
57,876
80,447
139,985
278,307
91.1%

20

$0
2
65
3
0
4
74
0.0%

Other
Senior
Unsecured
Other
Debt
Term Note
$0
0
1
0
3,352
3,713
7,065
2.3%

$0
0
1
4,773
6,005
9,151
19,929
6.5%

All Debt
$0
2
67
62,651
89,803
152,853
305,376

Share
by Term
0.0%
0.0%
0.0%
20.5%
29.4%
50.1%

2010, Volume 4, No. 2

Quarterly Banking Profile

Notes to Users

period amount plus end-of-period amount plus any interim
periods, divided by the total number of periods). For “poolingof-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. 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 FDICinsured 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
Extended Net Operating Loss Carryback Period – The Worker,
Homeownership, and Business Assistance Act of 2009, which
was enacted on November 6, 2009, permits banks and other
businesses, excluding those banking organizations that
received capital from the U.S. Treasury under the Troubled
Asset Relief Program, to elect a net operating loss carryback
period of three, four, or five years instead of the usual carryback period of two years for any one tax year ending after
December 31, 2007, and beginning before January 1, 2010.
For calendar year banks, this extended carryback period
applies to either the 2008 or 2009 tax year. The amount of
the net operating loss that can be carried back to the fifth
carryback year is limited to 50 percent of the available taxable income for that fifth year, but this limit does not apply to
other carryback years.
Under generally accepted accounting principles, banks may
not record the effects of this tax change in their balance
sheets and income statements for financial and regulatory
reporting purposes until the period in which the law was
enacted, i.e., the fourth quarter of 2009. Therefore, banks
should recognize the effects of this fourth quarter 2009 tax
law change on their current and deferred tax assets and liabilities, including valuation allowances for deferred tax assets, in
their Call Reports for December 31, 2009. Banks should not
amend their Call Reports for prior quarters for the effects of
the extended net operating loss carryback period.
The American Recovery and Reinvestment Act of 2009,
which was enacted on February 17, 2009, permits qualifying
small businesses, including FDIC-insured institutions, to elect
a net operating loss carryback period of three, four, or five
years instead of the usual carryback period of two years for
any tax year ending in 2008 or, at the small business’s election, any tax year beginning in 2008. Under generally accepted accounting principles, institutions may not record the
effect of this tax change in their balance sheets and income
statements for financial and regulatory reporting purposes
until the period in which the law was enacted, i.e., the first
quarter of 2009.
Other-Than-Temporary Impairment – When the fair value of an
investment in a debt or equity security is less than its cost
basis, the impairment is either temporary or other-than-­

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) Consolidated Reports of
Condition and Income (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
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. Additionally, 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.
All asset and liability figures used in calculating performance
ratios represent average amounts for the period (beginning-ofFDIC Quarterly

21

2010, Volume 4, No. 2

temporary. To determine whether the impairment is otherthan-temporary, an institution must apply other pertinent
guidance such as paragraph 16 of FASB Statement No. 115,
Accounting for Certain Investments in Debt and Equity Securities;
FASB Staff Position (FSP) FAS 115-1 and FAS 124-1,
The Meaning of Other-Than-Temporary Impairment and Its
Application to Certain Investments; FSP FAS 115‑2 and FAS
124-2, Recognition and Presentation of Other-Than-Temporary
Impairments; paragraph 6 of Accounting Principles Board
Opinion No. 18, The Equity Method of Accounting for
Investments in Common Stock; Emerging Issues Task Force
(EITF) Issue No. 99-20, Recognition of Interest Income and
Impairment on Purchased Beneficial Interests and Beneficial
Interests That Continue to Be Held by a Transferor in Securitized
Financial Assets; and FSP EITF 99-20-1, Amendments to the
Impairment Guidance of EITF Issue No. 99-20.
Under FSP FAS 115-2 and FAS 124-2 issued on April 9,
2009, if the present value of cash flows expected to be collected on a debt security is less than its amortized cost basis, a
credit loss exists. In this situation, if an institution does not
intend to sell the security and it is not more likely than not
that the institution will be required to sell the debt security
before recovery of its amortized cost basis less any current-­
period credit loss, an other-than-temporary impairment has
occurred. The amount of the total other-than-temporary
impairment related to the credit loss must be recognized in
earnings, but the amount of the total impairment related to
other factors must be recognized in other comprehensive
income, net of applicable taxes. Although the debt security
would be written down to its fair value, its new amortized cost
basis is the previous amortized cost basis less the other-thantemporary impairment recognized in earnings. In addition, if
an institution intends to sell a debt security whose fair value
is less than its amortized costs basis or it is more likely than
not that the institution will be required to sell the debt security before recovery of its amortized cost basis, an other-thantemporary impairment has occurred and the entire difference
between the security’s amortized cost basis and its fair value
must be recognized in earnings.
For any debt security held at the beginning of the interim
period in which FSP FAS 115-2 and FAS 124-2 is adopted
for which an other-than-temporary impairment loss has been
previously recognized, if an institution does not intend to sell
such a debt security and it is not more likely than not that
the institution will be required to sell the debt security before
recovery of its amortized cost basis, the institution should
­recognize the cumulative effect of initially applying the FSP
as an adjustment to the interim period’s opening balance of
retained earnings, net of applicable taxes, with a corresponding adjustment to accumulated other comprehensive income.
The cumulative effect on retained earnings must be calculated by comparing the present value of the cash flows expected
to be collected on the debt security with the security’s amortized cost basis as of the beginning of the interim period of
adoption.
FSP FAS 115-2 and FAS 124-2 are effective for interim and
annual reporting periods ending after June 15, 2009. Early
adoption of this FSP is permitted for periods ending after
March 15, 2009, if certain conditions are met. Institutions are
expected to adopt FSP FAS 115-2 and 124-2 for regulatory
reporting purposes in accordance with the FSP’s effective date.

FDIC Quarterly

Business Combinations and Noncontrolling (Minority) Interests –
In December 2007, the FASB issued Statement No. 141
(Revised), Business Combinations (FAS 141(R)), and State­
ment No. 160, Noncontrolling Interests in Consolidated Financial
Statements (FAS 160). Under FAS 141(R), all business combinations, including combinations of mutual entities, are to
be accounted for by applying the acquisition method. FAS
160 defines a noncontrolling interest, also called a minority
interest, as the portion of equity in an institution’s subsidiary
not attributable, directly or indirectly, to the parent institution. FAS 160 requires an institution to clearly present in its
consolidated financial statements the equity ownership in and
results of its subsidiaries that are attributable to the noncontrolling ownership interests in these subsidiaries. FAS 141(R)
applies prospectively to business combinations for which the
acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008.
Similarly, FAS 160 is effective for fiscal years beginning on or
after December 15, 2008. Thus, for institutions with calendar
year fiscal years, these two accounting standards take effect in
2009. Beginning in March 2009, Institution equity capital
and Noncontrolling interests are separately reported in arriving at Total equity capital and Net income.
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 fair value and establishes a
framework for developing fair value estimates for the fair value
measurements that are already required or permitted under
other standards. FASB FSP 157-4, issued in April 2009, provides additional guidance for estimating fair value in accordance with FAS 157 when the volume and level of activity for
the asset or liability have significantly decreased. The FSP also
includes guidance on identifying circumstances that indicate a
transaction is not orderly. The FSP is effective for interim and
annual reporting periods ending after June 15, 2009, with early
adoption permitted for periods ending after March 15, 2009.
Fair value continues to be used for derivatives, trading securities, and available-for-sale securities. Changes in fair value
go through earnings for trading securities and most derivatives. Changes in the fair value of available-for-sale securities
are reported in other comprehensive income. Available-forsale securities and held-to-maturity debt securities are written
down to fair value if impairment is other than temporary and
loans held for sale are reported at the lower of cost or fair
value.
FAS 159 allows institutions to report certain financial assets
and liabilities at fair value with subsequent changes in fair
value included in earnings. In general, an institution may
elect the fair value option for an eligible financial asset or liability when it first recognizes the instrument on its balance
sheet or enters into an eligible firm commitment.
FASB Statement No. 158 Employers’ Accounting for Defined Benefit
Pension and Other Postretirement Plans – issued in September
2006 requires a bank to recognize in 2007, and subsequently,
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

22

2010, Volume 4, No. 2

Quarterly Banking Profile
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.
FASB Statement No. 155 Accounting for Certain Hybrid Financial
Instruments – issued in February 2006, requires bifurcation of
certain derivatives embedded in interests in securitized financial assets and permits fair value measurement (i.e., a fair
value option) for any hybrid financial instrument that contains an embedded derivative that would otherwise require
bifurcation under FASB Statement No. 133, Accounting for
Derivative Instruments and Hedging Activities (FAS 133). In
addition, FAS 155 clarifies which interest-only and principalonly strips are not subject to FAS 133.
Purchased Impaired Loans and Debt Securities – Statement of
Position 03-3, 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 buyback 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 buy-back 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.
FASB Statements 166 & 167 – In June 2009, the FASB issued
Statement No. 166, Accounting for Transfers of Financial
Assets (FAS 166), and Statement No. 167, Amendments to
FASB Interpretation No. 46(R) (FAS 167), which change
the way entities account for securitizations and special purpose entities. FAS 166 revises FASB Statement No. 140,
Accounting for Transfers and Servicing of Financial Assets
and Extinguishments of Liabilities, by eliminating the concept of a “qualifying special-purpose entity,” creating the concept of a “participating interest,” changing the requirements
for derecognizing financial assets, and requiring additional
disclosures. FAS 167 revises FASB Interpretation No. 46(R),
Consolidation of Variable Interest Entities, by changing how
a bank or other company determines when an entity that is
insufficiently capitalized or is not controlled through voting
or similar rights, i.e., a “variable interest entity” (VIE), should
be consolidated. Under FAS 167, a bank must perform a

FDIC Quarterly

qualitative assessment to determine whether its variable interest or interests give it a controlling financial interest in a VIE.
If a bank’s variable interest or interests provide it with the
power to direct the most significant activities of the VIE, and
the right to receive benefits or the obligation to absorb losses
that could potentially be significant to the VIE, the bank is
the primary beneficiary of, and therefore must consolidate,
the VIE.
Both FAS 166 and FAS 167 take effect as of the beginning of
each bank’s first annual reporting period that begins after
November 15, 2009, for interim periods therein, and for
interim and annual reporting periods thereafter (i.e., as of
January 1, 2010, for banks with a calendar year fiscal year).
Earlier application is prohibited. Banks are expected to adopt
FAS 166 and FAS 167 for Call Report purposes in accordance with the effective date of these two standards. Also,
FAS 166 has modified the criteria that must be met in order
for a transfer of a portion of a financial asset, such as a loan
participation, to qualify for sale accounting. These changes
apply to transfers of loan participations on or after the effective date of FAS 166. Therefore, banks with a calendar year
fiscal year must account for transfers of loan participations on
or after January 1, 2010, in accordance with FAS 166. In general, loan participations transferred before the effective date
of FAS 166 (January 1, 2010, for calendar year banks) are not
affected by this new accounting standard and pre-FAS 166
participations that were properly accounted for as sales under
FASB Statement No. 140 will continue to be reported as
having been sold.
FASB Interpretation No. 48 on Uncertain Tax Positions – FASB
Interpretation No. 48, Accounting for Uncertainty in Income
Taxes (FIN 48), was issued in June 2006 as an interpretation
of FASB Statement No. 109, Accounting for Income Taxes.
Under FIN 48, the term “tax position” refers to “a position in
a previously filed tax return or a position expected to be
taken in a future tax return that is reflected in measuring
­current or deferred income tax assets and liabilities.” FIN 48
further states that a “tax position can result in a permanent
reduction of income taxes payable, a deferral of income taxes
otherwise currently payable to future years, or a change in the
expected realizability of deferred tax assets.” FIN 48 was originally issued effective for fiscal years beginning after December
15, 2006. Banks must adopt FIN 48 for Call Report purposes
in accordance with the interpretation’s effective date except
as follows. On December 31, 2008, the FASB decided to defer
the effective date of FIN 48 for eligible nonpublic enterprises
and to require those enterprises to adopt FIN 48 for annual
periods beginning after December 15, 2008. A nonpublic
enterprise under certain conditions is eligible for deferral,
even if it opted to issue interim or quarterly financial information in 2007 under earlier guidance that reflected the
adoption of FIN 48.
FASB Statement No. 123 (Revised 2004) and Share-Based
Payments – refer to previously published Quarterly Banking
Profile notes: http://www2.fdic.gov/qbp/2008dec/qbpnot.html
FASB Statement No. 133 Accounting for Derivative Instruments and
Hedging Activities – refer to previously published Quarterly
Banking Profile notes: http://www2.fdic.gov/qbp/2008dec/
qbpnot.html

23

2010, Volume 4, No. 2

DEFINITIONS (in alphabetical order)

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.
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.
Begin­ning March 31, 2008, for institutions that file Call
reports, insured deposits are total assessable deposits minus
estimated uninsured deposits. Beginning September 30, 2009,
insured deposits include deposits in accounts of $100,000 to
$250,000 that are covered by a temporary increase in the
FDIC’s standard maximum deposit insurance amount
(SMDIA).
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 assistance in order to continue operating.
Fair Value – the valuation of various assets and liabilities on
the balance sheet—including trading assets and liabilities,
available-for-sale securities, loans held for sale, assets and
­liabilities accounted for under the fair value option, and fore-

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, prepaid
deposit insurance assessments, 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.
Assessment base – assessable deposits consist of DIF deposits
(deposits insured by the FDIC Deposit Insurance Fund) in
banks’ domestic offices with certain adjustments).
Assets securitized and sold – total outstanding principal balance
of assets securitized and sold with servicing retained or other
seller- provided credit enhancements.
Capital Purchase Program (CPP) – As announced in October
2008 under the TARP, the Treasury Department purchase of
noncumulative perpetual preferred stock and related warrants
that is treated as Tier 1 capital for regulatory capital purposes
is included in “Total equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued
by publicly-traded banks are reflected as well in “Surplus.”
Warrants to purchase common stock or noncumulative preferred stock of not-publicly-traded bank stock classified in a
bank’s balance sheet as “Other liabilities.”
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 on the notional amount, the remaining
maturity and type of the contract.
FDIC Quarterly

24

2010, Volume 4, No. 2

Quarterly Banking Profile
closed assets—involves the use of fair values. During periods
of market stress, the fair values of some financial instruments
and nonfinancial assets may decline.
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 intangible assets. Goodwill is the excess of the
purchase price over the fair market value of the net assets
acquired, less subsequent impairment adjustments. Other
intangible assets are recorded at fair value, less subsequent
quarterly amortization and impairment adjustments.
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 trans­
actions 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.
New charters – insured institutions filing quarterly financial
reports for the first time.
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

FDIC Quarterly

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 threaten their
continued financial viability. Depending upon the degree of
risk and supervisory concern, they are rated either a “4” or
“5.” The number and assets of “problem” institutions are
based on FDIC composite ratings. Prior to March 31, 2008,
for institutions whose primary federal regulator was the OTS,
the OTS composite rating was 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 – bank net income (including gains or losses
on securities and extraordinary items) as a percentage of aver­
age total (consolidated) assets. The basic yardstick of bank
profitability.
Return on equity – bank net income (including gains or losses
on securities and extraordinary items) as a percentage of
­average total equity capital.
Risk-based capital groups – definition:
(Percent)

Well-capitalized
Adequately
capitalized
Undercapitalized
Significantly
undercapitalized
Critically
undercapitalized

Tier 1
Risk-Based
Capital*

Total
Risk-Based
Capital*

Tier 1
Leverage

Tangible
Equity

≥10

and

≥6

and

≥5

–

≥8
≥6

and
and

≥4
≥3

and
and

≥4
≥3

–
–

<6

or

<3

or

<3

–

–

–

and

>2
≤2

* As a percentage of risk-weighted assets.

25

2010, Volume 4, No. 2

Risk Categories and Assessment Rate Schedule – The current risk
categories became effective January 1, 2007. Capital ratios
and supervisory ratings distinguish one risk category from
another. The following table shows the relationship of risk
categories (I, II, III, IV) to capital and supervisory groups as
well as the initial base assessment rates (in basis points),
­effective April 1, 2009 for each risk category. 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. For purposes of riskbased assessment capital groups, undercapitalized includes
institutions that are significantly or critically undercapitalized.

Total Base Assessment Rates*

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

A

I
12–16 bps
II
22 bps

B

C

II
22 bps

III
32 bps

III
32 bps

Risk
Category
II

Risk
Category
III

Risk
Category
IV

Initial base
assessment rate

12–16

22

32

45

Unsecured debt
adjustment

-5  – 0

-5–0

-5  – 0

-5– 0

Secured liability
adjustment

0  – 8

0  –11

0  –16

0  –22.5

Brokered deposit
adjustment

–

0  –10

0  –10

0  –10

Total base
assessment rate

7–24.0

17–43.0

27–58.0

40–77.5

*All amounts for all risk categories are in basis points annually. Total base rates that are
not the minimum or maximum rate will vary between these rates.

Beginning in 2007, each institution is assigned a risk-based
rate for a quarterly assessment period near the end of the
quarter following the assessment period. Payment is generally
due on the 30th day of the last month of the quarter following the assessment period. Supervisory rating changes are
effective for assessment purposes as of the examination
­transmittal date. For institutions with long-term debt issuer
ratings, changes in ratings are effective for assessment purposes as of the date the change was announced.
Special Assessment – On May 22, 2009, the FDIC board
approved a final rule that imposed a 5 basis point special
assessment as of June 30, 2009. The special assessment was
levied on each insured depository institution’s assets minus its
Tier 1 capital as reported in its report of condition as of June
30, 2009. The special assessment will be collected September
30, 2009, at the same time that the risk-based assessment for
the second quarter of 2009 is collected. The special assessment for any institution was capped at 10 basis points of the
institution’s assessment base for the second quarter of 2009
risk-based assessment.
Prepaid Deposit Insurance Assessments – On November 12,
2009, the FDIC Board of Directors adopted a final rule requiring insured depository institutions (except those that are
exempted) to prepay their quarterly risk-based deposit insurance assessments for the fourth quarter of 2009, and for all of
2010, 2011, and 2012, on December 30, 2009. Each institution’s regular risk-based deposit insurance assessment for the
third quarter of 2009, which is paid in arrears, also is payable
on December 30, 2009.
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 200 percent. A conversion factor is used to assign
a balance sheet equivalent amount for selected off-balancesheet 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.

IV
45 bps

Effective April 1, 2009, the initial base assessment rates are
12 to 45 basis points. An institution’s total assessment rate
may be less than or greater than its initial base assessment
rate as a result of additional risk adjustments.
The base assessment rates for most institutions in Risk
Category I are based on a combination of financial ratios and
CAMELS component ratings (the financial ratios method).
For large institutions in Risk Category I (generally those with
at least $10 billion in assets) that have long-term debt issuer
ratings, assessment rates are determined by equally weighting
the institution’s CAMELS component ratings, long-term debt
issuer ratings, and the financial ratios method assessment rate.
For all large Risk Category I institutions, additional risk factors are 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 is limited to no more
than one basis point.
Effective April 1, 2009, the FDIC introduced three possible
adjustments to an institution’s initial base assessment rate:
(1) a decrease of up to 5 basis points for long-term unsecured
debt and, for small institutions, a portion of Tier 1 capital;
(2) an increase not to exceed 50 percent of an institution’s
assessment rate before the increase for secured liabilities in
excess of 25 percent of domestic deposits; and (3) for nonRisk Category I institutions, an increase not to exceed 10
basis points for brokered deposits in excess of 10 percent of
domestic deposits. After applying all possible adjustments,
minimum and maximum total base assessment rates for each
risk ­category are as follows:

FDIC Quarterly

Risk
Category
I

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2010, Volume 4, No. 2

Quarterly Banking Profile
Securities gains (losses) – realized gains (losses) on held-to-­
maturity and available-for-sale securities, before adjustments
for income taxes. 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.
Temporary Liquidity Guarantee Program (TLGP) – was approved
by the FDIC Board on October 13, 2008. The TLGP was
designed to help relieve the crisis in the credit markets by
giving banks access to liquidity during a time of global financial distress. Participation in the TLGP is voluntary. The
TLGP has two components:
Transaction Account Guarantee Program (TAGP) provides a full
guarantee of non-interest-bearing deposit transaction
accounts above $250,000, at depository institutions that
elected to participate in the program. On August 26, 2009,
the FDIC Board voted to extend the TAGP six months
beyond its original expiration date to June 30, 2010. (On
April 13, 2010, the FDIC Board adopted an interim rule
extending the TAG program for six months through
December 31, 2010, with a possibility of an additional
12-month extension, through December 31, 2011.)

Debt Guarantee Program (DGP) provides a full guarantee of
senior unsecured debt1 issued by eligible institutions after
October 14, 2008. Initially, debt issued before June 30,
2009, and maturing on or before June 30, 2012, could be
guaranteed. On March 17, 2009, the deadline for issuance
under the program was extended to October 31, 2009, and
the expiration of the guarantee was set at the earlier of
maturity of the debt or December 31, 2012. Institutions
­eligible for participation in the debt guarantee program
include insured depository institutions, U.S. bank holding
companies, certain U.S. savings and loan holding companies, and other affiliates of an insured depository institution
that the FDIC designates as eligible entities. The FDIC
Board adopted a final rule on October 20, 2009, that established a limited six-month emergency guarantee facility
upon expiration of the DGP.
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.

Senior unsecured debt generally includes term Federal funds
purchased, promissory notes, commercial paper, unsubordinated
unsecured notes, certificates of deposit (CDs) standing to the credit of
a bank, and U.S. dollar denominated bank deposits owed to an insured
depository institution.

1

FDIC Quarterly

27

2010, Volume 4, No. 2