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Quarterly Banking Profile First Quarter 2011 INSURED INSTITUTION PERFORMANCE ■ ■ ■ ■ ■ Net Income Rises to $29 Billion Lower Loan-Loss Provisions Remain Key to Higher Earnings Revenues Post Year-over-Year Decline Asset Quality Indicators Continue to Exhibit Improvement Loan Balances Fall by $126.6 Billion year-over-year decline. It is the smallest quarterly loss provision for the industry since third quarter 2007. The largest reductions in provisions occurred at credit card lenders that made sizable additions to their loan-loss reserves a year ago, but almost half of all institutions (48.9 percent) reported lower provisions. Fewer than a third (32.6 percent) increased their provisions from year-earlier levels. Profits Rise for Seventh Consecutive Quarter Bank earnings continued to benefit from falling loan-loss provisions in first quarter 2011 as FDIC-insured commercial banks and savings institutions posted their highest quarterly net income since the onset of the financial crisis. Net income totaled $29.0 billion, an $11.6 billion (66.5 percent) increase from first quarter 2010, and the best quarterly result since second quarter 2007. This is the seventh consecutive quarter that industry earnings have registered year-over-year gains. More than half of all institutions (56.2 percent) reported improved earnings, and fewer institutions were unprofitable (15.4 percent, compared to 19.3 percent in first quarter 2010). Revenues Exhibit Weakness The positive contribution from reduced provisions outweighed the negative effect of lower revenues at many institutions. Net operating revenue (net interest income plus total noninterest income) was $5.5 billion (3.2 percent) lower than a year ago. This is only the second time in the 27 years for which data are available that the industry has reported a year-over-year decline in quarterly net operating revenue. Loss Provisions Are Less than Half the Level of a Year Ago Provisions for loan losses fell to $20.7 billion in the first quarter from $51.6 billion a year earlier. This marks the sixth quarter in a row that loss provisions have had a Chart 1 Chart 2 Provisions Continue to Decline, but Revenues Are Not Growing Quarterly Earnings Improved Year-over-Year for a Seventh Consecutive Quarter Billions of Dollars 180 Billions of Dollars 60 Securities and Other Gains/Losses, Net Net Operating Income 50 40 36.9 38.0 38.0 35.3 35.6 36.8 30 28.7 19.3 20 10 0.5 0 17.4 4.8 0.9 20.9 23.8 22.1 160 140 29.0 120 100 80 2.2 -6.1 -12.6 -10 -20 Quarterly Net Operating Revenue* 60 -1.7 40 20 -30 -40 Quarterly Loan-Loss Provisions 0 -37.8 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2011 2009 2010 2007 2006 2008 FDIC Quarterly 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2005 2006 2010 2011 2007 2008 2009 * Net operating revenue = net interest income + noninterest income 1 2011, Volume 5, No. 2 while 41.5 percent reported increases. NCOs were lower in all major loan categories. The largest reduction occurred in credit cards, where NCOs fell by $7.3 billion (39.1 percent). Real estate construction loan NCOs were $3 billion (51.5 percent) lower than in first quarter 2010, while charge-offs of closed-end 1-4 family residential mortgages fell by $2.6 billion (29.6 percent). Commercial and industrial (C&I) loan NCOs also declined by $2.6 billion (43.1 percent). Decline in Revenues Is Concentrated Among Large Institutions Net interest income declined year-over-year for the first time since fourth quarter 1989, falling by $3.2 billion (3 percent), while noninterest income was $2.2 billion (3.7 percent) lower than in first quarter 2010. The reduction in net interest income was caused by narrower net interest margins and weak growth in interest-earning assets. The decline in noninterest income reflected lower revenues from service charges on deposit accounts (down $1.7 billion, or 17.3 percent at institutions filing Call Reports) and reduced trading income (down $1 billion, or 11.7 percent). Much of the reduction in net operating revenue was concentrated at larger institutions; more than half of all institutions (59.5 percent) reported year-over-year increases in net operating revenue, with 57.6 percent reporting higher net interest income and 52.1 percent reporting increased noninterest income. However, of the ten largest institutions, which together hold more than half of all insured institution assets, six reported year-over-year declines in net operating revenue, six had declines in noninterest income and eight reported lower net interest income. Noncurrent Loan Balances Fall for a Fourth Consecutive Quarter Noncurrent loan balances (loans 90 days or more past due or in nonaccrual status) fell by $17 billion (4.7 percent) during the quarter. At the end of March, insured institutions reported $341.7 billion in noncurrent loans and leases, down from $358.7 billion at the end of 2010. This is the fourth consecutive quarter that noncurrent loans have declined, and they are now $68.2 billion (16.6 percent) below the peak level reached a year ago. Half of all institutions (50.3 percent) reported reductions in their noncurrent loan balances, while 43.1 percent reported increases. Noncurrent balances declined in all major loan categories. Noncurrent C&I loans declined by $6.1 billion (21.1 percent), noncurrent construction and development loans fell by $4.3 billion (8.3 percent), and noncurrent closed-end 1-4 family residential mortgages declined by $2.8 billion (1.6 percent). The average noncurrent loan rate at the end of the quarter was 4.71 percent, the lowest level since second quarter 2009. Loan Losses Improve Across All Main Loan Categories Net loan charge-offs (NCOs) declined for a third consecutive quarter. Insured institutions charged-off $33.3 billion in the first quarter, a $19.9 billion (37.5 percent) decline from first quarter 2010. Almost half of all institutions (48.9 percent) reported lower NCOs, Chart 3 Chart 4 Lower Asset Yields Are Putting Downward Pressure on Net Interest Margins The Levels of Troubled Loans and Loan Losses Remain High Percent 6 Quarterly Net Interest Margin (Percent) 4.5 Noncurrent Loan Rate 5 4.0 4 3.5 3 3.0 Assets < $1 Billion Assets $1 Billion - $10 Billion Assets $10 Billion - $100 Billion Assets > $100 Billion 2.5 2.0 2 1 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2011 2009 2010 2008 2006 2007 FDIC Quarterly 0 2 Quarterly Net Charge-off Rate 2006 2007 2008 2009 2010 2011 2011, Volume 5, No. 2 Quarterly Banking Profile Most Large Banks Reduce Their Reserves Asset Growth Occurs Outside Loan Portfolios Net charge-offs exceeded loss provisions by $12.6 billion in the first quarter, contributing to a $13 billion (5.6 percent) drop in the industry’s loan-loss reserves. This is the fourth consecutive quarter that aggregate reserves have declined; they are now $44.9 billion (17.1 percent) below the peak level of a year ago. The decline in reserves was concentrated among the largest banks. Sixteen of the 19 institutions with assets greater than $100 billion reduced their reserves in the first quarter, and almost two-thirds of institutions with assets between $10 billion and $100 billion (63.2 percent) also reported reserve declines. Some of the largest reductions in reserves occurred at credit card lenders. In contrast to the trend at large banks, most institutions with less than $1 billion in assets (60.1 percent) increased their reserves during the quarter. Total assets of insured institutions increased by $94.7 billion (0.7 percent) during the quarter. Balances with Federal Reserve banks increased by $116.3 billion (23.5 percent) at Call Report filers with $300 million or more in total assets. Mortgage-backed securities holdings rose by $34.5 billion (2.3 percent). Total loan and lease balances continued to fall, declining by $126.6 billion (1.7 percent). This is the fifth-largest quarterly percentage decline in loan balances in the 28 years for which data are available, and it marks the tenth time in the last eleven quarters that reported loan balances have fallen (the one exception was caused by the implementation of FASB 166 and 167, which resulted in the consolidation of as much as $400 billion in securitized loans onto banks’ balance sheets in first quarter 2010). The largest declines in loan balances were in 1-4 family residential mortgages, which fell by $63.8 billion (3.4 percent), credit cards (down $38.9 billion, or 5.5 percent), and in real estate construction and development loans, which declined by $25.9 billion (8.1 percent). Balances fell in most major loan categories, with the exception of C&I loans, which increased by $18.1 billion (1.5 percent) and loans to depository institutions, which rose by $10.2 billion (9.3 percent). Almost half of the growth in C&I loans (47 percent) represented loans to non-U.S. borrowers, while 86.2 percent of the increase in loans to depository institutions consisted of loans to foreign banks. At the end of March, net loans and leases represented 52.4 percent of insured institutions’ assets, the lowest share since the early 1970s. Capital Levels Improve Additions to capital in the first quarter surpassed the decline in reserves. Bank equity capital increased by $25.1 billion (1.7 percent), as retained earnings contributed $13.9 billion. Total risk-based capital increased by $17.8 billion (1.3 percent). Tier 1 leverage capital increased by $25.8 billion (2.2 percent), but tier 2 capital fell by $7.9 billion (3.4 percent), reflecting lower loan-loss reserves. At the end of the quarter, 96 percent of all institutions, representing over 99 percent of total industry assets, met or exceeded the highest regulatory capital requirements as defined for Prompt Corrective Action (PCA) purposes. Industry averages for all three regulatory capital ratios rose to all-time high levels, driven by improvements at the largest institutions. Chart 5 Chart 6 Banks Are Continuing to Raise Their Capital Levels Loan Balances Continue to Decline Percent 18 17 16 15 Total Risk-Based Capital Ratio 14 13 12 Tier 1 Risk-Based Capital Ratio 11 10 Equity to Assets Ratio 9 8 Core Capital (Leverage) Ratio 7 6 5 4 3 2 1 0 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2005 2006 2007 2008 2009 2010 2011 FDIC Quarterly Quarterly Change in Reported Total Loans Outstanding (Billions of Dollars) 300 237.3 250 220.9* 202.6 188.9 200 150 100 61.4 43.4 50 28.1 0 -6.3 -6.6 -13.9 -50 -100 -108.6 -106.9 -116.2 -126.6 -150 -133.2 -139.6 -200 -210.3 -250 1 2 3 2007 4 1 2 3 2008 4 1 2 3 2009 4 1 2 3 2010 4 1 2011 * FASB Statements 166 and 167 resulted in the consolidation of large amounts of securitized loan balances back onto banks’ balance sheets in the first quarter of 2010. Although the total amount consolidated cannot be precisely quantified, the industry would have reported a decline in loan balances for the quarter absent this change in accounting standards. 3 2011, Volume 5, No. 2 Deposit Growth Remains Strong The Pace of Bank Failures Slows Deposits at FDIC-insured institutions increased by $178.8 billion (1.9 percent), as deposits in foreign offices rose by $61.4 billion (4 percent), and domestic office deposits grew by $117.4 billion (1.5 percent). Noninterest-bearing deposits in domestic offices increased by $58.3 billion (3.5 percent), while interestbearing deposits were up by $59.1 billion (1 percent). Nondeposit liabilities fell by $101.1 billion (4.2 percent), with Fed funds purchased declining by $44.6 billion (37.5 percent), and FHLB advances falling by $28.6 billion (7.4 percent). The number of insured commercial banks and savings institutions reporting financial results declined from 7,658 to 7,574 in the first quarter. One new reporting institution was added during the quarter, while 56 institutions were absorbed by mergers and 26 institutions failed. One report had not been received at the time these data were prepared. The number of institutions on the FDIC’s “Problem List” increased from 884 to 888 during the quarter. Assets of “problem” institutions increased from $390 billion to $397 billion. Insured institutions reported 2.09 million full-time equivalent employees in the first quarter, an increase of 65,632 (3.2 percent) from first quarter 2010. Author: Chart 7 Chart 8 Banks Have Reduced Credit Risk and Increased Liquidity The Number of “Problem” Institutions Has Leveled Off Number of FDIC-Insured “Problem” Institutions Balances at Federal Reserve Banks* (Billions of Dollars) 700 600 $518 500 1000 900 $531 $488 $573 $596 $498 $494 600 252 200 $20 1 $29 2 3 2008 100 48 50 47 50 53 61 65 76 90 4 1 2 3 2009 4 1 2 3 2010 *Reported by insured Call Reporters with assets greater than $300 million. FDIC Quarterly 4 1 2011 0 4 884 888 416 300 $176 860 552 500 400 200 829 702 700 300 0 775 800 $611 $547 $388 400 100 Ross Waldrop, Sr. Banking Analyst Division of Insurance and Research (202) 898-3951 117 305 171 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2006 2009 2007 2008 2010 2011 2011, Volume 5, 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�������������������������������������������������������������������������������������� 2011** 0.87 7.75 9.14 2.95 1.82 0.59 3.66 78.81 7,574 6,453 1,121 15.36 888 $397 26 0 2010** 0.53 4.87 8.54 3.44 2.88 -1.40 3.84 352.07 7,934 6,773 1,161 19.31 775 $431 41 0 2010 0.65 5.90 8.89 3.11 2.55 1.78 3.76 1653.91 7,658 6,530 1,128 21.81 884 $390 157 0 2009 -0.07 -0.71 8.60 3.36 2.52 -5.45 3.49 -154.33 8,012 6,840 1,172 30.8 702 $403 140 8 2008 0.03 0.35 7.47 1.91 1.29 6.19 3.16 -90.71 8,305 7,087 1,218 24.89 252 $159 25 5 2007 0.81 7.75 7.97 0.95 0.59 9.88 3.29 -27.59 8,534 7,284 1,250 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 * 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 1st Quarter 2011 7,574 2,092,877 4th Quarter 2010 7,658 2,086,582 1st Quarter 2010 7,934 2,027,245 %Change 10Q1-11Q1 -4.5 3.2 $13,414,655 4,158,538 1,833,798 1,064,489 295,511 623,994 1,204,518 1,275,196 663,194 55,025 557,462 1,995 7,248,745 218,158 7,030,587 2,723,194 52,376 394,475 3,214,024 $13,319,971 4,266,518 1,897,610 1,070,659 321,438 636,903 1,186,467 1,317,602 702,058 59,329 547,841 2,441 7,375,316 231,154 7,144,163 2,667,711 52,676 393,750 3,061,671 $13,336,249 4,401,820 1,887,145 1,091,364 418,028 659,712 1,176,799 1,366,177 712,776 55,740 504,892 2,711 7,502,717 263,105 7,239,612 2,531,621 46,306 404,591 3,114,118 0.6 -5.5 -2.8 -2.5 -29.3 -5.4 2.4 -6.7 -7.0 -1.3 10.4 -26.4 -3.4 -17.1 -2.9 7.6 13.1 -2.5 3.2 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������������������������������������������������������������������������������������������� 13,414,655 9,601,757 7,990,506 1,611,252 1,629,745 139,860 514,006 1,529,286 1,510,503 13,319,971 9,422,958 7,873,135 1,549,823 1,718,333 146,833 519,548 1,512,298 1,485,442 13,336,249 9,198,799 7,692,355 1,506,444 2,052,564 150,540 475,259 1,459,088 1,439,423 0.6 4.4 3.9 7.0 -20.6 -7.1 8.2 4.8 4.9 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***���������������������������������������������������������������������������������� 110,513 341,697 110,107 1,519,194 11,643,457 357,952 5,779,802 19,980,826 976,910 246,083,864 118,390 358,719 87,487 1,484,703 11,555,391 386,504 5,658,421 19,341,650 967,307 232,210,712 144,461 409,871 64,426 1,387,008 11,554,212 480,359 6,102,602 18,115,247 996,881 218,807,591 -23.5 -16.6 70.9 9.5 0.8 -25.5 -5.3 10.3 -2.0 12.5 (dollar figures in millions) 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�������������������������������������������������������������������������������������������������������� 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 2010 $536,917 106,882 430,035 157,579 236,715 392,694 9,116 38,283 -450 86,860 86,206 187,504 53,895 32,311 80,280 Full Year 2009 $541,170 143,509 397,661 249,598 260,635 406,114 -1,629 6,164 -3,787 -8,994 -9,795 188,824 47,189 -56,984 -5,166 *** Call Report filers only. FDIC Quarterly %Change -0.8 -25.5 8.1 -36.9 -9.2 -3.3 N/M 521.1 88.1 N/M N/M -0.7 14.2 N/M N/M 1st Quarter 2011 $129,438 23,238 106,200 20,700 58,623 102,228 -124 12,714 106 29,163 29,003 33,305 15,101 13,902 29,237 1st Quarter 2010 $138,521 29,091 109,429 51,560 60,866 95,339 1,592 7,436 58 17,611 17,418 53,252 4,374 13,044 16,351 %Change 10Q1-11Q1 -6.6 -20.1 -3.0 -59.9 -3.7 7.2 N/M 71.0 83.1 65.6 66.5 -37.5 245.2 6.6 78.8 N/M - Not Meaningful. 5 2011, Volume 5, No. 2 TABLE III-A. First Quarter 2011, All FDIC-Insured Institutions Asset Concentration Groups* First Quarter All Insured (The way it is...) Institutions Number of institutions reporting����������������������� 7,574 Commercial banks������������������������������������� 6,453 Savings institutions����������������������������������� 1,121 Total assets (in billions)������������������������������������ $13,414.7 Commercial banks������������������������������������� 12,157.3 Savings institutions����������������������������������� 1,257.3 Total deposits (in billions)��������������������������������� 9,601.8 Commercial banks������������������������������������� 8,674.6 Savings institutions����������������������������������� 927.2 Bank net income (in millions)��������������������������� 29,003 Commercial banks������������������������������������� 27,147 Savings institutions����������������������������������� 1,855 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 Card International Agricultural Commercial Banks Banks Banks Lenders 21 4 1,531 3,983 17 4 1,527 3,553 4 0 4 430 $676.3 $3,164.6 $200.3 $4,087.1 651.1 3,164.6 199.8 3,619.6 25.2 0.0 0.5 467.4 290.6 2,111.7 167.5 3,155.9 275.0 2,111.7 167.1 2,824.5 15.6 0.0 0.4 331.4 6,364 4,643 524 6,283 5,869 4,643 523 5,494 495 0 1 789 Mortgage Consumer Lenders Lenders 700 72 168 55 532 17 $798.9 $118.4 233.4 49.7 565.5 68.7 569.5 96.5 141.6 39.0 427.9 57.5 984 387 848 249 136 138 Other Specialized All Other <$1 Billion <$1 Billion 355 844 327 750 28 94 $51.9 $137.1 46.4 111.7 5.5 25.3 41.1 114.7 37.1 94.6 4.0 20.1 170 277 113 256 57 21 All Other >$1 Billion 64 52 12 $4,180.1 4,081.0 99.1 3,054.3 2,984.0 70.3 9,371 9,153 218 4.47 0.80 3.66 1.76 3.06 0.62 0.88 1.25 0.87 7.75 1.82 12.20 1.29 10.92 2.78 4.82 2.01 3.62 5.70 3.68 23.80 6.67 3.25 0.71 2.53 1.98 2.89 0.29 0.72 0.80 0.60 6.79 1.96 4.87 1.06 3.80 0.60 2.62 0.26 1.04 1.23 1.05 9.64 0.30 4.70 0.92 3.78 1.22 3.05 0.69 0.59 0.87 0.62 5.33 1.32 4.21 1.14 3.06 0.79 2.44 0.53 0.46 0.73 0.49 4.80 0.97 5.52 1.16 4.35 1.57 2.68 0.99 1.33 2.05 1.33 12.28 1.77 3.65 0.84 2.81 5.45 6.08 0.19 1.30 1.78 1.33 8.71 0.74 4.74 1.03 3.70 0.87 3.03 0.27 0.79 1.00 0.82 7.30 0.36 3.78 0.55 3.23 2.17 3.02 0.60 0.87 1.30 0.90 7.40 1.40 62.15 60.75 15.36 56.15 35.20 36.55 4.76 90.48 43.81 69.27 0.00 0.00 136.56 63.51 5.62 55.26 78.25 65.69 21.11 58.80 94.54 66.39 15.14 50.71 75.04 46.16 6.94 44.44 87.50 75.34 10.99 46.76 133.20 70.69 9.48 54.27 83.61 60.08 7.81 54.69 86.80 88.86 85.01 91.68 88.79 93.19 94.56 91.28 91.59 83.97 3.01 63.85 7.57 374.40 3.68 66.07 1.63 83.77 2.43 57.85 1.49 33.71 2.39 159.99 1.86 81.44 1.56 68.82 2.68 43.76 2.95 11.26 9.14 13.04 15.54 73.22 52.41 59.57 1.72 16.03 13.39 15.27 17.57 182.87 78.57 39.51 2.02 8.72 7.13 11.90 15.02 48.02 32.05 33.03 1.64 10.96 9.94 14.44 15.61 71.28 59.60 83.62 3.58 11.62 9.87 12.98 14.97 84.45 65.21 76.07 2.92 10.29 9.49 19.94 21.07 78.75 56.13 71.19 1.22 10.81 10.50 14.36 15.53 87.12 71.03 81.35 0.93 15.15 14.01 31.37 32.42 34.92 27.67 78.14 1.76 11.18 10.81 18.35 19.49 64.35 53.85 83.68 3.43 12.22 8.96 12.10 15.09 68.09 49.75 61.75 Structural Changes New charters��������������������������������������������� Institutions absorbed by mergers������������� Failed institutions�������������������������������������� 1 56 26 0 0 0 0 0 0 0 9 2 1 38 24 0 1 0 0 2 0 0 1 0 0 3 0 0 2 0 PRIOR First quarters (The way it was...) Number of institutions������������������������������2010 ������������������������������������� 2008 ������������������������������������� 2006 7,934 8,494 8,790 21 26 30 4 6 4 1,553 1,550 1,647 4,358 4,752 4,629 745 809 864 75 102 120 303 362 436 813 835 1,001 62 52 59 Total assets (in billions)����������������������������2010 ������������������������������������� 2008 ������������������������������������� 2006 $13,336.3 13,369.3 11,209.8 $725.0 448.5 370.2 $3,157.3 3,085.6 1,972.3 $181.1 158.0 140.3 $4,498.0 5,271.5 3,844.9 $776.9 1,364.4 1,745.6 $95.0 66.3 98.6 $40.7 38.2 50.0 $126.6 112.5 128.6 $3,735.7 2,824.5 2,859.2 Return on assets (%)��������������������������������2010 ������������������������������������� 2008 ������������������������������������� 2006 0.53 0.58 1.34 0.70 4.59 4.57 0.75 0.35 1.16 0.95 1.19 1.26 0.16 0.78 1.35 0.78 -0.21 1.05 1.41 1.30 2.19 1.20 2.20 -1.31 0.86 1.01 1.06 0.64 0.13 1.23 Net charge-offs to loans & leases (%)�����2010 ������������������������������������� 2008 ������������������������������������� 2006 2.88 0.99 0.32 14.26 4.97 2.95 2.75 1.13 0.53 0.45 0.17 0.09 1.89 0.71 0.17 1.20 1.14 0.11 2.69 1.78 0.95 0.54 0.21 0.16 0.44 0.17 0.12 2.29 0.64 0.18 Noncurrent assets plus OREO to assets (%)��������������������������2010 ������������������������������������� 2008 ������������������������������������� 2006 3.44 1.15 0.48 2.77 1.62 1.17 2.64 0.70 0.42 1.66 0.99 0.67 4.01 1.43 0.49 3.14 1.97 0.55 1.29 0.73 0.51 0.69 0.28 0.23 1.54 0.74 0.53 3.87 0.70 0.37 Equity capital ratio (%)�����������������������������2010 ������������������������������������� 2008 ������������������������������������� 2006 10.79 10.18 10.38 13.47 22.85 27.22 8.77 7.57 7.95 11.23 11.22 10.81 10.76 11.36 10.28 9.76 8.09 10.81 10.52 9.01 9.63 16.99 20.28 19.39 11.20 11.32 11.04 12.15 9.61 9.55 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 V-A (page 10) for explanations. FDIC Quarterly 6 2011, Volume 5, No. 2 Quarterly Banking Profile TABLE III-A. First Quarter 2011, All FDIC-Insured Institutions Asset Size Distribution First quarter All Insured (The way it is...) Institutions Number of institutions reporting����������������������������� 7,574 Commercial banks������������������������������������������� 6,453 Savings institutions����������������������������������������� 1,121 Total assets (in billions)������������������������������������������ $13,414.7 Commercial banks������������������������������������������� 12,157.3 Savings institutions����������������������������������������� 1,257.3 Total deposits (in billions)��������������������������������������� 9,601.8 Commercial banks������������������������������������������� 8,674.6 Savings institutions����������������������������������������� 927.2 Bank net income (in millions)��������������������������������� 29,003 Commercial banks������������������������������������������� 27,147 Savings institutions����������������������������������������� 1,855 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* Less than $100 $1 Billion Greater $100 Million to to than Million $1 Billion $10 Billion $10 Billion New York 2,574 4,330 563 107 943 2,277 3,659 431 86 489 297 671 132 21 454 $147.2 $1,284.3 $1,429.1 $10,554.1 $2,709.2 130.4 1,050.6 1,094.0 9,882.4 2,039.4 16.8 233.8 335.1 671.7 669.8 124.9 1,067.7 1,103.5 7,305.7 1,853.0 111.5 881.7 846.1 6,835.2 1,370.8 13.4 186.0 257.3 470.5 482.2 212 1,775 2,617 24,399 6,989 205 1,531 2,144 23,267 6,671 7 244 472 1,132 319 Atlanta 1,009 892 117 $2,912.9 2,791.1 121.9 2,153.9 2,062.5 91.4 4,497 4,374 123 Chicago 1,581 1,302 279 $3,048.2 2,924.4 123.8 2,114.4 2,020.5 93.9 5,108 5,059 48 Kansas City 1,811 1,713 98 $1,680.3 1,625.7 54.6 1,251.1 1,208.0 43.1 5,073 4,986 87 San Dallas Francisco 1,580 650 1,465 592 115 58 $788.5 $2,275.6 695.2 2,081.6 93.3 193.9 638.6 1,590.8 562.2 1,450.6 76.4 140.2 1,823 5,512 1,606 4,451 217 1,061 4.47 0.80 3.66 1.76 3.06 0.62 0.88 1.25 0.87 7.75 1.82 4.89 1.06 3.83 1.10 3.62 0.29 0.56 0.69 0.58 4.98 0.41 4.88 1.13 3.75 0.94 3.18 0.50 0.53 0.73 0.56 5.40 0.75 4.82 1.02 3.80 1.20 2.92 0.68 0.71 1.06 0.73 6.46 1.32 4.35 0.72 3.63 1.94 3.06 0.63 0.94 1.35 0.93 8.22 2.09 5.00 0.94 4.05 1.68 3.12 0.56 1.01 1.58 1.04 8.18 2.29 4.26 0.71 3.55 1.70 3.06 0.86 0.56 0.85 0.62 5.25 1.81 3.60 0.72 2.88 1.92 3.02 0.47 0.68 0.94 0.68 7.91 1.41 5.36 0.68 4.68 2.03 3.47 0.84 1.23 1.77 1.20 10.51 2.01 4.68 0.82 3.86 1.29 3.14 0.42 0.92 1.23 0.93 8.68 0.82 4.48 0.93 3.55 1.66 2.72 0.48 1.11 1.39 0.97 7.94 1.98 62.15 60.75 15.36 56.15 121.63 78.69 17.87 53.03 102.22 72.27 14.32 56.17 81.67 62.01 12.97 67.50 57.77 59.15 9.35 71.03 44.11 58.05 13.36 56.73 84.61 64.34 30.62 51.64 71.68 67.39 14.10 56.29 61.99 54.33 10.93 56.16 80.84 65.17 10.06 54.87 48.35 56.20 22.77 65.08 86.80 91.16 91.51 90.54 85.66 87.49 84.12 87.03 87.16 90.13 87.67 3.01 63.85 1.77 67.37 1.92 54.20 2.24 52.20 3.32 66.50 3.03 88.58 3.03 49.58 3.09 59.45 3.39 64.53 2.17 60.48 2.85 75.84 2.95 11.26 9.14 13.04 15.54 73.22 52.41 59.57 2.39 11.62 11.24 17.91 19.04 67.51 57.31 84.88 3.37 10.32 9.85 14.54 15.76 75.72 62.95 83.06 3.47 11.47 10.12 14.97 16.27 79.56 61.43 76.72 2.84 11.34 8.89 12.55 15.37 72.00 49.84 54.03 2.05 12.74 10.21 14.99 17.05 77.48 52.99 60.09 3.97 11.86 8.59 11.74 14.78 73.85 54.61 65.29 2.74 8.53 7.22 10.85 14.03 63.66 44.16 53.63 4.05 11.59 9.44 11.79 14.22 85.83 63.91 68.89 3.00 10.75 9.76 14.09 15.80 75.41 61.08 80.52 2.19 12.33 10.69 16.14 17.82 69.33 48.47 45.42 Structural Changes New charters��������������������������������������������������� Institutions absorbed by mergers������������������� Failed institutions�������������������������������������������� 1 56 26 0 19 5 1 31 19 0 6 2 0 0 0 0 4 0 1 2 10 0 15 7 0 16 0 0 16 5 0 3 4 PRIOR First quarters (The way it was…) Number of institutions������������������������������������2010 ������������������������������������������� 2008 ������������������������������������������� 2006 7,934 8,494 8,790 2,779 3,347 3,826 4,475 4,481 4,334 575 549 511 105 117 119 977 1,036 1,106 1,103 1,223 1,225 1,637 1,752 1,863 1,868 1,968 2,055 1,654 1,730 1,783 695 785 758 Total assets (in billions)����������������������������������2010 ������������������������������������������� 2008 ������������������������������������������� 2006 $13,336.3 13,369.3 11,209.8 $155.4 178.0 199.0 $1,339.9 1,334.3 1,259.4 $1,478.1 1,438.1 1,395.6 $10,362.8 10,419.0 8,355.8 $2,671.8 2,478.8 2,866.2 $2,989.0 3,423.5 2,759.4 $2,978.4 2,963.1 2,604.0 $1,664.4 1,000.0 819.6 $786.4 748.7 620.6 $2,246.3 2,755.2 1,539.9 Return on assets (%)��������������������������������������2010 ������������������������������������������� 2008 ������������������������������������������� 2006 0.53 0.58 1.34 0.46 0.73 0.95 0.38 0.79 1.11 0.19 0.76 1.30 0.60 0.53 1.39 0.56 1.04 1.29 0.27 0.32 1.33 0.48 0.75 1.10 0.65 1.39 1.59 0.72 0.94 1.31 0.73 -0.05 1.71 Net charge-offs to loans & leases (%)�����������2010 ������������������������������������������� 2008 ������������������������������������������� 2006 2.88 0.99 0.32 0.65 0.20 0.12 0.88 0.30 0.12 1.77 0.70 0.18 3.46 1.16 0.39 4.10 1.15 0.47 2.73 0.76 0.16 2.35 0.84 0.23 3.27 1.13 0.35 1.23 0.45 0.16 2.59 1.38 0.52 Noncurrent assets plus OREO to assets (%)��������������������������������2010 ������������������������������������������� 2008 ������������������������������������������� 2006 3.44 1.15 0.48 2.31 1.09 0.69 3.38 1.33 0.52 3.69 1.44 0.44 3.43 1.09 0.48 2.46 0.86 0.40 4.18 1.08 0.31 3.23 1.09 0.53 4.79 1.52 0.84 3.18 1.22 0.68 3.02 1.42 0.60 Equity capital ratio (%)�����������������������������������2010 ������������������������������������������� 2008 ������������������������������������������� 2006 10.79 10.18 10.38 11.96 13.78 12.29 10.04 10.52 10.28 10.87 11.13 10.78 10.86 9.94 10.28 11.92 12.09 11.15 11.29 10.20 9.77 8.55 9.06 9.02 11.51 9.73 10.48 10.40 9.88 10.19 11.37 9.88 12.36 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 V-A (page 11) for explanations. FDIC Quarterly 7 2011, Volume 5, No. 2 TABLE IV-A. Full Year 2010, All FDIC-Insured Institutions Asset Concentration Groups* Full Year All Insured (The way it is...) Institutions Number of institutions reporting����������������������� 7,658 Commercial banks������������������������������������� 6,530 Savings institutions����������������������������������� 1,128 Total assets (in billions)������������������������������������ $13,320.0 Commercial banks������������������������������������� 12,066.4 Savings institutions����������������������������������� 1,253.6 Total deposits (in billions)��������������������������������� 9,423.0 Commercial banks������������������������������������� 8,514.4 Savings institutions����������������������������������� 908.6 Bank net income (in millions)��������������������������� 86,206 Commercial banks������������������������������������� 77,948 Savings institutions����������������������������������� 8,258 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 Card International Agricultural Commercial Banks Banks Banks Lenders 22 4 1,559 4,085 18 4 1,555 3,640 4 0 4 445 $705.4 $3,038.1 $199.8 $4,097.6 678.1 3,038.1 199.3 3,631.3 27.4 0.0 0.5 466.3 297.2 2,009.5 165.9 3,147.7 281.4 2,009.5 165.5 2,822.3 15.8 0.0 0.4 325.4 12,056 21,828 1,901 8,837 10,914 21,828 1,898 6,451 1,141 0 3 2,386 Mortgage Consumer Lenders Lenders 718 73 182 59 536 14 $789.0 $114.4 235.3 49.7 553.7 64.7 544.0 91.1 132.2 38.2 411.8 52.9 5,317 1,433 2,701 922 2,616 511 Other Specialized All Other <$1 Billion <$1 Billion 314 815 286 732 28 83 $42.9 $132.4 37.3 109.4 5.6 23.0 33.5 110.4 29.4 91.9 4.1 18.5 624 911 365 975 260 -64 All Other >$1 Billion 68 54 14 $4,200.3 4,087.8 112.5 3,023.7 2,943.9 79.8 33,300 31,893 1,406 4.70 0.94 3.76 1.79 2.97 1.19 0.61 0.94 0.65 5.90 2.55 13.57 1.48 12.09 2.99 4.63 6.32 1.77 2.74 1.82 11.83 10.83 3.42 0.71 2.71 2.00 2.82 0.62 0.64 0.95 0.72 8.08 2.29 5.22 1.30 3.93 0.65 2.68 0.46 0.96 1.12 0.98 8.84 0.59 4.89 1.13 3.76 1.27 3.05 1.25 0.16 0.37 0.22 1.92 1.90 4.36 1.34 3.02 0.76 1.78 0.75 0.67 1.08 0.68 6.95 1.14 5.80 1.37 4.43 1.88 2.78 1.29 1.28 2.01 1.28 11.96 2.36 3.79 0.98 2.81 6.68 7.26 0.22 1.29 1.95 1.48 9.15 0.64 4.98 1.24 3.74 1.03 3.27 0.38 0.67 0.83 0.70 6.23 0.56 3.96 0.67 3.28 2.18 2.92 0.89 0.79 1.14 0.80 6.70 1.87 84.04 57.22 21.81 66.51 69.06 31.86 9.09 100.00 75.96 65.15 0.00 75.00 122.88 62.64 7.06 65.75 96.27 64.44 31.63 66.88 110.05 49.15 16.43 72.42 72.49 44.96 5.48 83.56 124.09 77.38 14.33 50.64 120.39 70.17 11.53 63.80 91.47 57.24 7.35 75.00 86.75 Condition Ratios (%) Earning assets to total assets�������������������������� Loss allowance to: Loans and leases�������������������������������������� Noncurrent loans and leases�������������������� Noncurrent assets plus other real estate owned to assets������������� Equity capital ratio�������������������������������������������� Core capital (leverage) ratio ���������������������������� Tier 1 risk-based capital ratio��������������������������� Total risk-based capital ratio���������������������������� Net loans and leases to deposits��������������������� Net loans to total assets ���������������������������������� Domestic deposits to total assets�������������������� 88.75 84.36 91.62 88.77 93.53 96.20 90.96 91.74 84.22 3.13 64.44 8.19 372.36 3.96 62.79 1.57 84.98 2.47 57.35 1.45 34.16 2.50 173.56 1.85 87.85 1.51 69.00 2.70 43.74 3.11 11.15 8.89 12.71 15.28 75.82 53.63 59.11 1.90 14.96 12.76 14.24 16.91 188.43 79.39 37.91 2.38 8.93 6.96 11.87 15.03 50.17 33.18 33.27 1.62 10.86 9.92 13.97 15.13 74.85 62.15 83.03 3.71 11.42 9.60 12.59 14.59 86.24 66.25 75.40 2.89 10.06 9.38 19.19 20.25 84.64 58.35 68.85 1.22 11.00 10.50 14.12 15.29 92.76 73.88 79.53 0.81 16.32 14.65 34.59 35.63 33.80 26.36 76.67 1.69 11.02 10.56 17.73 18.88 65.77 54.84 83.39 3.48 12.04 8.69 11.81 14.95 69.73 50.20 60.99 Structural Changes New charters��������������������������������������������� Institutions absorbed by mergers������������� Failed institutions�������������������������������������� 11 197 157 0 0 0 0 0 0 0 35 3 6 119 143 1 28 6 0 0 1 2 0 1 0 6 2 2 9 1 PRIOR Full Years (The way it was...) Number of institutions����������������������������� 2009 ������������������������������������� 2007 ������������������������������������� 2005 8,012 8,534 8,833 23 27 33 4 5 4 1,568 1,592 1,685 4,453 4,773 4,617 766 784 886 83 109 125 289 373 425 770 815 995 56 56 63 Total assets (in billions)��������������������������� 2009 ������������������������������������� 2007 ������������������������������������� 2005 $13,087.0 13,033.9 10,879.3 $501.6 479.2 359.1 $3,107.1 2,784.3 1,851.2 $182.0 157.5 142.3 $4,546.9 4,619.0 4,257.3 $810.1 1,328.1 1,647.2 $96.5 94.9 117.3 $38.0 37.8 47.7 $116.1 110.4 128.7 $3,688.7 3,422.7 2,328.5 Return on assets (%)������������������������������� 2009 ������������������������������������� 2007 ������������������������������������� 2005 -0.07 0.81 1.28 -4.51 3.35 2.90 0.08 0.58 0.86 0.81 1.20 1.27 -0.42 0.83 1.36 0.65 0.03 1.07 0.33 1.26 1.55 0.74 2.56 2.18 0.80 1.03 1.09 0.53 0.88 1.34 Net charge-offs to loans & leases (%)���� 2009 ������������������������������������� 2007 ������������������������������������� 2005 2.52 0.59 0.49 9.77 3.95 4.64 3.07 0.77 0.87 0.65 0.22 0.18 2.02 0.35 0.23 1.24 0.40 0.12 2.74 0.87 1.44 0.78 0.29 0.26 0.54 0.22 0.23 2.19 0.39 0.24 Noncurrent assets plus OREO to assets (%)������������������������� 2009 ������������������������������������� 2007 ������������������������������������� 2005 3.36 0.95 0.50 2.40 1.54 1.32 2.75 0.68 0.46 1.55 0.83 0.61 3.87 1.10 0.48 3.17 1.52 0.56 1.45 1.64 0.51 0.69 0.23 0.24 1.34 0.65 0.54 3.66 0.68 0.39 Equity capital ratio (%)���������������������������� 2009 ������������������������������������� 2007 ������������������������������������� 2005 10.88 10.34 10.28 21.49 21.26 21.51 8.75 8.01 8.30 10.95 11.17 10.55 10.48 11.00 10.83 9.48 8.38 9.40 11.15 12.62 10.11 17.74 19.98 19.47 11.27 11.46 10.83 11.95 10.32 9.52 * See Table V-A (page 10) for explanations. FDIC Quarterly 8 2011, Volume 5, No. 2 Quarterly Banking Profile TABLE IV-A. Full Year 2010, All FDIC-Insured Institutions Asset Size Distribution Full Year All Insured (The way it is...) Institutions Number of institutions reporting����������������������������� 7,658 Commercial banks������������������������������������������� 6,530 Savings institutions����������������������������������������� 1,128 Total assets (in billions)������������������������������������������ $13,320.0 Commercial banks������������������������������������������� 12,066.4 Savings institutions����������������������������������������� 1,253.6 Total deposits (in billions)��������������������������������������� 9,423.0 Commercial banks������������������������������������������� 8,514.4 Savings institutions����������������������������������������� 908.6 Bank net income (in millions)��������������������������������� 86,206 Commercial banks������������������������������������������� 77,948 Savings institutions����������������������������������������� 8,258 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* Less than $100 $1 Billion Greater $100 Million to to than Million $1 Billion $10 Billion $10 Billion New York 2,625 4,367 559 107 949 2,328 3,693 423 86 492 297 674 136 21 457 $148.6 $1,292.0 $1,430.2 $10,449.1 $2,694.9 132.2 1,059.0 1,089.0 9,786.2 2,027.0 16.5 233.0 341.3 662.9 667.9 125.4 1,069.5 1,101.5 7,126.6 1,809.1 112.3 884.8 841.0 6,676.3 1,338.0 13.1 184.7 260.5 450.3 471.1 421 3,585 3,057 79,144 20,201 418 2,943 1,711 72,877 16,108 3 642 1,346 6,267 4,094 Atlanta 1,022 905 117 $2,930.1 2,806.8 123.3 2,128.2 2,036.0 92.2 10,469 10,453 16 Chicago 1,602 1,321 281 $2,950.2 2,825.0 125.2 2,033.9 1,939.9 94.0 17,671 17,865 -194 Kansas City 1,825 1,728 97 $1,686.6 1,635.8 50.8 1,245.4 1,206.2 39.2 14,141 13,922 220 San Dallas Francisco 1,601 659 1,484 600 117 59 $789.3 $2,268.8 694.8 2,076.9 94.5 191.8 637.6 1,568.7 561.4 1,432.8 76.2 135.9 5,414 18,310 4,598 15,003 816 3,307 4.70 0.94 3.76 1.79 2.97 1.19 0.61 0.94 0.65 5.90 2.55 5.18 1.30 3.88 1.28 3.91 0.56 0.25 0.39 0.29 2.39 0.79 5.17 1.38 3.78 0.97 3.22 0.86 0.22 0.42 0.28 2.74 1.11 4.90 1.24 3.65 1.27 2.95 1.18 0.19 0.48 0.21 1.94 1.80 4.60 0.83 3.77 1.97 2.93 1.24 0.72 1.08 0.76 6.85 2.93 5.40 1.12 4.28 1.67 2.86 1.43 0.74 1.13 0.76 6.15 3.57 4.39 0.88 3.51 1.65 2.91 1.24 0.28 0.55 0.36 3.11 2.42 3.80 0.79 3.01 2.01 3.03 0.88 0.51 0.82 0.60 6.83 2.02 5.77 0.82 4.95 2.27 3.51 1.77 0.87 1.27 0.85 7.38 2.88 4.90 1.00 3.90 1.39 3.18 0.86 0.65 0.91 0.69 6.55 1.27 4.55 1.03 3.52 1.61 2.62 0.94 0.78 1.16 0.81 6.98 2.29 84.04 57.22 21.81 66.51 115.56 80.51 22.74 62.32 115.74 71.60 21.39 68.31 101.85 62.06 22.54 69.95 80.20 54.81 12.15 77.57 71.63 51.14 15.81 75.45 90.64 61.17 43.64 62.23 90.41 64.66 20.35 67.23 90.09 50.73 14.79 65.97 103.56 64.16 14.74 61.77 79.61 55.03 36.72 71.47 86.75 Condition Ratios (%) Earning assets to total assets��������������������������������� Loss allowance to: Loans and leases��������������������������������������������� Noncurrent loans and leases��������������������������� Noncurrent assets plus other real estate owned to assets�������������������� Equity capital ratio��������������������������������������������������� Core capital (leverage) ratio ����������������������������������� Tier 1 risk-based capital ratio���������������������������������� Total risk-based capital ratio����������������������������������� Net loans and leases to deposits���������������������������� Net loans to total assets ����������������������������������������� Domestic deposits to total assets��������������������������� 91.15 91.61 90.65 85.56 87.34 84.50 86.50 87.47 90.36 87.50 3.13 64.44 1.71 65.51 1.90 53.38 2.27 51.79 3.49 67.36 3.30 93.90 3.07 50.74 3.16 57.74 3.47 64.66 2.19 59.20 3.06 72.97 3.11 11.15 8.89 12.71 15.28 75.82 53.63 59.11 2.38 11.71 11.28 17.72 18.84 70.08 59.11 84.36 3.43 10.17 9.65 14.10 15.32 78.01 64.58 82.70 3.56 11.21 9.83 14.45 15.78 80.60 62.07 76.46 3.02 11.26 8.63 12.23 15.16 74.85 51.05 53.46 2.14 12.58 9.88 14.41 16.69 80.42 53.99 59.40 3.93 11.61 8.28 11.50 14.66 75.40 54.77 63.91 2.98 8.71 7.16 10.70 13.90 66.83 46.07 54.43 4.24 11.33 9.13 11.29 13.76 89.14 65.82 67.96 3.14 10.56 9.49 13.62 15.33 77.65 62.73 80.30 2.51 12.11 10.35 15.88 17.55 71.39 49.36 44.69 Structural Changes New charters��������������������������������������������������� Institutions absorbed by mergers������������������� Failed institutions�������������������������������������������� 11 197 157 2 69 36 2 108 102 6 18 18 1 2 1 2 22 14 3 44 56 1 17 25 2 43 18 2 52 7 1 19 37 PRIOR Full Years (The way it was…) Number of institutions����������������������������������� 2009 ��������������������������������������������2007 ��������������������������������������������2005 8,012 8,534 8,833 2,848 3,440 3,864 4,492 4,424 4,339 565 551 512 107 119 118 986 1,043 1,110 1,121 1,221 1,227 1,647 1,763 1,874 1,879 1,986 2,070 1,660 1,742 1,791 719 779 761 Total assets (in billions)��������������������������������� 2009 ��������������������������������������������2007 ��������������������������������������������2005 $13,087.0 13,033.9 10,879.3 $158.9 181.9 200.8 $1,354.4 1,308.8 1,247.6 $1,461.6 1,422.0 1,394.3 $10,112.1 10,121.2 8,036.7 $2,567.3 2,441.0 2,769.2 $3,427.3 3,329.6 2,683.9 $2,934.4 2,842.5 2,505.8 $1,145.6 976.3 803.7 $784.9 738.3 607.7 $2,227.5 2,706.3 1,508.9 Return on assets (%)������������������������������������� 2009 ��������������������������������������������2007 ��������������������������������������������2005 -0.07 0.81 1.28 -0.05 0.74 0.99 -0.10 0.97 1.24 -0.36 0.96 1.28 -0.03 0.77 1.29 -0.83 0.77 1.21 0.01 0.81 1.36 0.18 0.86 0.99 0.76 1.46 1.62 0.35 1.00 1.19 -0.25 0.52 1.60 Net charge-offs to loans & leases (%)���������� 2009 ��������������������������������������������2007 ��������������������������������������������2005 2.52 0.59 0.49 0.88 0.24 0.20 1.25 0.25 0.19 1.90 0.42 0.24 2.87 0.68 0.60 2.76 0.90 0.80 2.29 0.33 0.23 2.36 0.47 0.33 2.40 0.78 0.56 1.34 0.30 0.24 3.44 0.77 0.70 Noncurrent assets plus OREO to assets (%)������������������������������� 2009 ��������������������������������������������2007 ��������������������������������������������2005 3.36 0.95 0.50 2.24 0.96 0.69 3.29 1.07 0.52 3.58 1.09 0.44 3.36 0.92 0.50 2.33 0.81 0.44 4.16 0.81 0.30 3.20 0.94 0.54 4.28 1.37 0.86 3.04 1.00 0.73 3.19 1.12 0.59 Equity capital ratio (%)���������������������������������� 2009 ��������������������������������������������2007 ��������������������������������������������2005 10.88 10.34 10.28 11.96 13.73 12.16 9.86 10.49 10.20 10.73 11.34 10.66 11.02 10.12 10.18 12.53 12.06 10.53 11.66 10.30 9.80 8.59 9.23 9.23 10.70 9.74 10.45 10.30 10.22 10.17 11.11 10.24 12.40 * See Table V-A (page 11) for explanations. FDIC Quarterly 9 2011, Volume 5, No. 2 TABLE V-A. Loan Performance, All FDIC-Insured Institutions Asset Concentration Groups* March 31, 2011 All Insured Institutions Credit Card Banks International Agricultural Commercial Mortgage Banks Banks Lenders Lenders Consumer Lenders Other All Other All Other Specialized <$1 >$1 <$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������������������������������������������������������ 1.88 2.23 1.14 1.02 1.12 2.67 0.65 1.72 1.77 1.66 0.40 1.52 1.51 0.00 0.00 0.00 1.29 1.94 2.09 1.79 1.75 2.74 0.01 1.75 2.46 2.62 0.78 0.45 1.63 3.64 0.47 2.01 2.49 1.75 0.28 1.59 1.29 2.11 1.13 0.75 0.56 1.72 1.33 1.57 1.05 1.58 0.83 1.21 1.51 2.23 1.18 1.12 0.86 2.02 0.75 1.48 1.12 1.53 0.52 1.31 1.57 2.25 1.26 1.06 0.69 1.69 0.87 0.87 1.50 0.82 0.61 1.52 1.11 2.37 0.51 0.05 0.98 1.33 0.84 1.42 0.89 1.64 0.88 1.31 1.55 1.20 1.33 0.31 0.80 1.98 1.24 1.88 1.86 1.89 0.46 1.49 1.79 2.22 1.43 0.88 0.96 2.07 1.43 1.83 0.97 1.85 0.65 1.69 2.39 2.19 1.03 1.34 1.17 3.48 0.47 1.68 1.75 1.66 0.42 1.73 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������������������������������������������������������ 7.01 15.99 4.29 3.62 1.79 9.60 1.90 1.65 2.05 1.21 1.00 4.71 5.94 0.00 0.00 0.00 4.69 7.77 2.19 2.08 2.03 3.11 0.02 2.02 9.85 13.97 5.73 2.87 2.40 16.18 2.35 1.89 2.22 1.72 1.38 5.57 2.48 10.15 3.16 4.10 1.08 1.69 2.11 0.69 0.74 0.69 0.67 1.95 5.36 16.13 4.05 3.68 1.39 5.12 2.03 1.23 1.95 1.13 1.11 4.20 4.64 12.19 3.97 2.80 1.11 4.96 2.24 0.49 1.44 0.41 0.33 4.42 1.50 3.98 2.71 3.96 0.97 1.52 0.61 1.54 1.02 1.75 0.44 1.48 2.77 9.28 2.65 0.90 0.73 2.10 1.62 0.79 1.21 0.75 0.92 2.29 2.58 7.96 2.69 2.85 0.83 2.10 2.12 0.81 0.70 0.81 0.70 2.26 9.83 17.07 5.21 4.51 1.96 14.26 1.46 1.14 2.35 0.85 0.71 6.13 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������������������������������������������������������ 1.45 3.65 0.87 0.79 2.21 1.32 1.14 4.30 6.69 1.34 0.44 1.82 6.09 0.00 0.00 0.00 2.62 9.13 8.17 6.81 6.75 8.14 0.01 6.67 2.12 0.98 1.63 1.33 2.65 2.46 1.40 3.77 5.52 2.37 0.69 1.96 0.31 1.33 0.40 0.65 1.02 0.28 0.61 0.45 1.41 0.34 0.00 0.30 1.40 4.26 0.96 0.82 1.46 1.09 1.12 1.60 5.43 0.82 0.46 1.31 0.93 3.16 0.42 0.35 1.47 0.89 1.91 1.50 3.16 1.23 0.30 0.97 1.37 0.87 0.80 -6.31 2.38 0.84 4.25 1.73 4.05 0.59 4.54 1.76 0.45 1.35 0.32 0.06 0.46 0.44 1.52 0.60 3.44 0.27 2.87 0.74 0.29 1.09 0.25 0.40 0.36 0.23 0.71 0.57 1.21 0.45 0.40 0.36 1.58 2.57 0.60 0.35 2.71 1.41 0.48 2.68 8.68 0.95 0.26 1.40 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)�������������� $4,158.5 295.5 1,064.5 214.4 624.0 1,833.8 1,204.5 1,275.2 663.2 612.0 612.5 7,250.7 $0.1 0.0 0.0 0.0 0.0 0.0 29.1 527.6 505.1 22.5 18.1 574.9 $488.4 6.9 28.6 37.6 113.2 249.6 200.9 159.3 55.6 103.7 204.7 1,053.3 $73.2 4.1 21.4 1.7 1.5 19.0 15.8 5.9 0.1 5.8 26.5 121.4 $1,859.1 198.9 744.4 128.8 199.7 554.1 538.4 201.0 25.5 175.5 133.8 2,732.3 $425.7 7.8 30.9 9.7 35.7 340.5 12.2 14.7 1.1 13.6 2.7 455.3 $23.0 0.6 2.1 0.4 10.0 9.8 4.1 59.4 17.4 42.0 0.3 86.7 $10.3 0.8 3.5 0.3 0.4 4.8 1.9 1.7 0.1 1.6 0.8 14.6 $56.3 $1,222.6 3.4 73.0 14.4 219.2 1.3 34.5 2.3 261.0 31.0 625.1 7.1 395.0 6.9 298.7 0.1 58.0 6.7 240.7 4.7 220.9 75.0 2,137.2 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������������������������������������������������������ 52,376.0 17,957.5 10,719.4 2,476.7 13,279.5 423.2 7,316.1 -5.0 0.0 0.0 0.0 0.2 0.0 0.0 4,664.1 4.0 162.0 746.0 1,201.1 0.0 2,359.0 881.5 327.4 290.4 33.4 171.9 57.9 0.6 31,219.2 14,833.7 8,106.8 1,108.1 6,191.5 328.5 632.0 3,141.3 450.7 239.4 51.4 1,741.5 3.8 656.5 102.7 22.0 19.1 20.6 39.5 1.5 0.0 140.8 54.5 41.7 3.9 38.0 2.7 0.0 697.2 11,534.2 195.4 2,070.0 193.2 1,666.8 32.4 480.9 227.9 3,667.9 16.1 12.6 32.1 3,636.0 * 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. ** 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 2011, Volume 5, No. 2 Quarterly Banking Profile TABLE V-A. Loan Performance, All FDIC-Insured Institutions Asset Size Distribution March 31, 2011 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��������������������������������������������� 1.88 2.23 1.14 1.02 1.12 2.67 0.65 1.72 1.77 1.66 0.40 1.52 1.87 2.31 1.77 1.22 0.97 2.24 1.75 1.97 1.17 1.98 0.88 1.76 1.62 2.48 1.43 1.21 0.88 1.84 1.31 1.55 2.00 1.52 0.66 1.53 1.32 2.12 1.08 1.14 0.78 1.57 0.93 1.73 1.80 1.70 0.47 1.27 2.08 2.17 1.01 0.94 1.17 2.99 0.53 1.72 1.76 1.66 0.37 1.56 1.52 2.81 1.29 0.97 0.69 1.78 0.89 1.72 1.61 2.09 0.33 1.42 2.09 1.79 1.21 1.40 1.37 2.90 0.57 1.87 1.84 1.88 0.33 1.67 1.81 2.54 1.20 0.84 1.26 2.53 0.71 1.49 1.54 1.48 0.49 1.42 2.37 2.54 1.01 1.27 1.01 3.94 0.73 2.03 2.23 1.73 0.54 1.86 1.61 1.69 1.05 1.36 0.87 2.34 0.81 1.12 0.82 1.27 0.50 1.37 1.78 2.62 0.93 0.89 0.96 2.66 0.39 1.56 1.80 1.37 0.25 1.32 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��������������������������������������������� 7.01 15.99 4.29 3.62 1.79 9.60 1.90 1.65 2.05 1.21 1.00 4.71 3.07 9.95 3.48 3.53 1.45 2.34 2.56 1.03 0.72 1.03 0.83 2.63 4.03 12.90 3.46 3.20 1.37 2.86 2.46 0.77 1.54 0.71 0.86 3.54 5.18 16.76 4.13 3.82 1.45 4.12 2.41 1.12 1.75 0.91 0.91 4.29 8.22 17.12 4.81 3.66 1.85 11.72 1.76 1.71 2.06 1.28 1.02 4.99 4.77 18.60 3.88 2.64 1.20 4.82 2.31 1.91 2.02 1.53 0.29 3.42 9.05 17.93 5.01 5.69 1.92 12.27 1.52 1.32 1.98 0.98 0.51 6.10 7.86 14.85 4.42 3.75 1.97 12.61 2.07 1.38 2.31 1.12 0.89 5.20 8.24 14.05 4.36 3.41 2.28 12.98 1.85 1.85 2.23 1.26 0.95 5.25 4.66 10.45 3.11 4.54 1.29 5.00 1.58 0.64 0.84 0.53 1.19 3.58 5.50 19.67 4.55 3.20 1.16 6.67 2.04 1.73 2.01 1.49 2.33 3.75 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��������������������������������������������� 1.45 3.65 0.87 0.79 2.21 1.32 1.14 4.30 6.69 1.34 0.44 1.82 0.40 1.32 0.44 0.50 0.55 0.29 0.67 0.49 2.46 0.37 0.00 0.41 0.71 2.42 0.52 0.62 0.70 0.52 0.98 1.09 5.93 0.62 0.33 0.75 1.30 4.89 0.99 0.82 1.16 0.74 1.27 1.93 5.10 0.68 0.48 1.32 1.68 3.69 0.99 0.83 2.41 1.56 1.15 4.57 6.73 1.47 0.45 2.09 0.90 2.76 0.84 0.57 0.95 0.75 1.68 6.01 6.91 2.42 0.13 2.29 1.95 5.33 0.96 0.95 2.80 1.54 0.68 3.45 7.57 0.96 0.19 1.81 1.53 4.64 1.23 0.72 1.96 1.23 1.16 2.12 5.70 0.84 0.32 1.41 1.38 1.83 0.54 0.37 2.94 1.30 1.11 5.37 7.87 1.08 0.25 2.01 0.78 1.96 0.45 0.43 1.46 0.62 0.76 1.54 3.27 0.50 0.27 0.82 1.72 3.25 0.97 1.62 1.92 2.24 1.45 3.43 4.67 2.10 1.38 1.98 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)����� $4,158.5 295.5 1,064.5 214.4 624.0 1,833.8 1,204.5 1,275.2 663.2 612.0 612.5 7,250.7 $60.1 4.1 18.0 1.8 1.9 26.1 11.1 5.8 0.1 5.7 8.8 85.9 $645.6 66.6 256.7 30.8 35.8 222.3 105.1 37.5 2.4 35.1 36.5 824.6 $660.8 67.4 268.2 44.5 47.9 220.6 133.4 71.6 18.0 53.6 33.1 898.9 $2,792.1 157.4 521.6 137.3 538.4 1,364.8 954.9 1,160.3 642.7 517.6 534.1 5,441.4 $815.5 43.3 225.2 62.4 89.1 389.4 184.2 382.6 295.7 86.8 98.6 1,480.9 $1,019.7 90.6 232.7 29.8 178.3 478.7 286.5 219.9 76.7 143.3 114.2 1,640.4 $803.8 48.7 191.6 62.7 155.6 330.5 247.8 180.9 40.6 140.4 156.4 1,389.0 $607.9 41.7 151.0 19.2 110.4 260.8 173.3 217.4 132.3 85.2 112.9 1,111.5 $336.1 45.0 123.0 9.7 23.1 123.2 90.3 44.4 14.9 29.4 21.7 492.5 $575.6 26.1 141.0 30.7 67.5 251.1 222.4 229.9 103.0 126.9 108.5 1,136.4 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��������������������������������������������� 52,376.0 17,957.5 10,719.4 2,476.7 13,279.5 423.2 7,316.1 1,226.7 420.2 370.6 39.9 363.7 33.1 0.4 13,930.5 6,463.0 3,792.5 449.6 2,917.8 229.3 79.2 10,881.7 5,373.9 2,784.8 383.3 2,153.3 117.5 69.8 26,337.1 5,700.4 3,771.4 1,603.8 7,844.8 43.2 7,166.6 4,723.9 1,320.0 1,181.5 208.2 1,665.9 16.5 312.6 14,516.9 5,684.5 2,537.8 415.9 4,093.3 83.1 1,703.4 11,266.3 2,535.6 2,161.8 440.2 2,705.4 89.7 3,333.7 9,538.3 3,224.4 2,071.8 337.0 2,366.7 67.1 1,471.7 5,873.9 2,919.9 1,375.2 166.5 1,241.4 111.6 59.2 6,456.8 2,273.2 1,391.3 908.9 1,206.8 55.2 435.7 * 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 ** 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 2011, Volume 5, 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 10Q1than $100 Million to 2010 2010 2010 2010 11Q1 Million $1 Billion $1 Billion to $10 Greater than Billion $10 Billion (dollar figures in millions; 1st Quarter notional amounts unless otherwise indicated) 2011 ALL DERIVATIVE HOLDERS Number of institutions reporting derivatives����������������� 1,144 1,168 1,207 1,159 1,148 Total assets of institutions reporting derivatives���������� $10,944,288 $10,834,403 $10,888,467 $10,650,392 $10,745,975 Total deposits of institutions reporting derivatives������� 7,705,985 7,545,587 7,402,157 7,248,634 7,281,782 Total derivatives������������������������������������������������������������� 246,083,864 232,210,712 236,472,606 225,518,995 218,807,591 -0.3 1.8 5.8 12.5 82 $6,000 5,113 145 690 $284,265 232,834 17,146 291 81 $844,995 $9,809,028 662,006 6,806,032 66,052 246,000,521 Derivative Contracts by Underlying Risk Exposure Interest rate�������������������������������������������������������������������� 199,547,520 193,497,885 196,558,711 188,621,077 182,641,534 Foreign exchange*�������������������������������������������������������� 28,788,641 22,002,935 22,531,799 20,245,402 19,202,392 Equity����������������������������������������������������������������������������� 1,471,260 1,363,760 1,679,128 1,615,062 1,570,974 Commodity & other (excluding credit derivatives)�������� 1,377,484 1,195,150 1,153,316 1,076,212 941,687 Credit������������������������������������������������������������������������������ 14,898,959 14,150,982 14,549,653 13,961,242 14,451,004 Total�������������������������������������������������������������������������������� 246,083,864 232,210,712 236,472,606 225,518,995 218,807,591 9.3 49.9 -6.3 46.3 3.1 12.5 141 0 4 0 0 145 16,825 77 109 16 118 17,146 61,231 199,469,323 3,843 28,784,722 578 1,470,568 215 1,377,253 185 14,898,655 66,052 246,000,521 Derivative Contracts by Transaction Type Swaps���������������������������������������������������������������������������� 152,747,048 149,256,558 146,962,909 Futures & forwards�������������������������������������������������������� 39,084,278 35,712,439 39,643,697 Purchased options��������������������������������������������������������� 19,021,195 16,174,116 16,911,279 Written options��������������������������������������������������������������� 18,256,144 15,904,093 16,697,323 Total�������������������������������������������������������������������������������� 229,108,665 217,047,205 220,215,208 12.0 12.5 20.7 14.7 13.0 27 46 20 52 145 9,228 3,582 665 3,553 17,027 45,935 152,691,858 10,233 39,070,418 3,543 19,016,967 5,758 18,246,780 65,469 229,026,023 141,427,435 136,333,735 36,793,865 34,747,283 15,399,619 15,759,306 15,898,211 15,910,886 209,519,129 202,751,210 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����������������������������������� 92,290 8,198 1,763 -916 -40,236 50,612 92,057 12,340 -2,126 -1,068 -68,248 82,772 107,170 -7,464 -1,777 -721 -131,318 150,801 98,102 -4,874 311 -503 -222,427 242,490 94,739 1,329 -849 1,064 -121,494 141,389 -2.6 516.9 N/M N/M 66.9 -64.2 1 0 0 0 0 0 4 -1 2 2 0 0 121 -16 8 2 5 -2 92,164 8,215 1,754 -920 -40,240 50,613 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 92,443,214 34,896,628 24,922,192 18,023,979 2,741,047 1,432,790 349,752 204,151 84,177 504,234 225,140 25,209 90,842,757 33,496,837 24,306,863 14,467,367 2,432,756 1,289,279 296,198 190,861 84,629 382,507 239,847 26,176 90,921,190 35,145,181 24,550,151 13,362,678 2,582,310 1,431,627 352,002 217,579 86,713 311,897 241,288 33,836 89,002,955 33,352,707 23,099,484 11,959,585 2,356,096 1,306,940 326,743 205,295 80,595 324,203 207,019 30,459 84,010,725 33,334,968 24,121,171 11,092,119 2,440,019 1,329,332 320,739 220,454 84,000 287,660 177,250 31,220 10.0 4.7 3.3 62.5 12.3 7.8 9.0 -7.4 0.2 75.3 27.0 -19.3 15 17 28 0 0 0 0 0 0 0 0 0 5,394 4,981 2,297 74 2 0 30 28 0 7 5 0 10,994 25,024 14,841 2,577 79 149 98 240 11 128 45 0 92,426,812 34,866,606 24,905,025 18,021,327 2,740,966 1,432,641 349,624 203,882 84,165 504,099 225,090 25,209 37.7 86.8 41.3 84.0 48.6 83.1 45.0 83.1 41.4 89.1 0.0 0.1 0.4 0.2 1.0 0.4 42.4 98.0 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 (%)�������������������������������������������������� 124.5 125.2 131.7 128.1 130.4 0.1 0.7 1.4 140.5 Credit losses on derivatives***���������������������������������� 77.0 668.4 554.7 259.2 100.1 -23.1 0.0 0.0 5.3 71.7 HELD FOR TRADING Number of institutions reporting derivatives����������������� Total assets of institutions reporting derivatives���������� Total deposits of institutions reporting derivatives������� 193 9,075,286 6,418,885 196 8,968,803 6,279,414 201 9,001,809 6,139,890 189 8,882,869 6,078,628 195 8,949,192 6,095,318 -1.0 1.4 5.3 6 354 286 73 31,875 25,561 56 227,681 177,905 58 8,815,377 6,215,132 Derivative Contracts by Underlying Risk Exposure Interest rate�������������������������������������������������������������������� 196,013,964 191,773,865 194,585,711 186,781,466 180,761,592 Foreign exchange���������������������������������������������������������� 26,378,493 20,853,441 20,699,946 18,086,768 17,462,757 Equity����������������������������������������������������������������������������� 1,465,412 1,357,525 1,672,913 1,608,817 1,563,707 Commodity & other�������������������������������������������������������� 1,356,822 1,184,245 1,145,723 1,070,966 934,851 Total�������������������������������������������������������������������������������� 225,214,690 215,169,076 218,104,293 207,548,018 200,722,908 8.4 51.1 -6.3 45.1 12.2 12 0 0 0 12 1,195 0 1 0 1,195 13,417 2,621 120 121 16,277 195,999,341 26,375,872 1,465,291 1,356,701 225,197,206 1,597.8 -99.3 -23.7 -32.4 -9.5 0 0 0 0 0 0 0 0 0 0 24 4 4 1 32 4,560 25 743 2,042 7,370 0.0 0.0 0.0 0.0 1.2 21.9 6.4 40.9 Trading Revenues: Cash & Derivative Instruments Interest rate�������������������������������������������������������������������� Foreign exchange���������������������������������������������������������� Equity����������������������������������������������������������������������������� Commodity & other (including credit derivatives)�������� Total trading revenues��������������������������������������������������� 4,584 29 747 2,043 7,403 1,413 1,892 365 -226 3,444 4,150 -1,087 405 609 4,077 68 4,312 418 1,912 6,710 270 3,906 979 3,024 8,178 Share of Revenue Trading revenues to gross revenues (%)���������������������� Trading revenues to net operating revenues (%)���������� 6.2 40.7 2.8 25.5 3.5 28.4 5.5 47.7 6.6 76.1 HELD FOR PURPOSES OTHER THAN TRADING Number of institutions reporting derivatives����������������� Total assets of institutions reporting derivatives���������� Total deposits of institutions reporting derivatives������� 1,035 10,593,072 7,496,306 1,057 10,475,733 7,333,179 1,084 10,535,035 7,198,525 1,046 10,261,969 7,015,274 1,032 10,324,307 7,035,315 0.3 2.6 6.6 76 5,646 4,826 625 257,038 210,868 257 729,138 569,248 77 9,601,249 6,711,363 Derivative Contracts by Underlying Risk Exposure Interest rate�������������������������������������������������������������������� Foreign exchange���������������������������������������������������������� Equity����������������������������������������������������������������������������� Commodity & other�������������������������������������������������������� Total notional amount���������������������������������������������������� 3,533,556 333,908 5,848 20,662 3,893,975 1,724,020 136,970 6,235 10,905 1,878,129 1,973,000 124,108 6,214 7,593 2,110,915 1,839,611 120,010 6,244 5,246 1,971,111 1,879,942 134,258 7,268 6,835 2,028,303 88.0 148.7 -19.5 202.3 92.0 129 0 4 0 133 15,631 77 109 16 15,832 47,815 825 458 94 49,192 3,469,982 333,007 5,277 20,552 3,828,817 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 2011, Volume 5, 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 Sold and Securitized with Servicing Retained or with Recourse or Other Seller-Provided Credit Enhancements 1st Quarter 2011 4th Quarter 2010 3rd Quarter 2010 2nd Quarter 2010 1st Quarter 2010 % Change Less than $100 $1 Billion Greater 10Q1$100 Million to to $10 than $10 11Q1 Million $1 Billion Billion Billion Number of institutions reporting securitization activities����������������������������������������� Outstanding Principal Balance 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 securitized and sold������������������������������������������������������������������������������������������ 144 137 135 125 125 15.2 22 68 24 30 $753,780 0 11,607 234 4,138 257 206,893 976,910 $752,619 0 13,748 298 4,234 4,014 192,394 967,307 $760,102 0 14,320 329 4,333 4,340 213,203 996,627 $759,032 0 15,452 486 5,021 871 209,600 990,463 $778,241 15 16,133 600 5,610 849 195,433 996,881 -3.1 -100.0 -28.1 -61.0 -26.2 -69.7 5.9 -2.0 $375 0 0 0 0 0 2 377 $841 0 721 0 0 13 39 1,615 $2,726 0 0 40 0 27 109 2,903 $749,838 0 10,886 194 4,138 216 206,743 972,015 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��� 4,547 0 552 4 201 0 397 5,701 125 4,683 0 609 5 185 9 440 5,931 208 4,834 0 574 6 207 9 1,165 6,795 211 4,953 0 664 6 245 86 270 6,224 166 5,166 14 730 6 237 86 281 6,521 162 -12.0 -100.0 -24.4 -33.3 -15.2 -100.0 41.3 -12.6 -22.8 2 0 0 0 0 0 0 2 1 44 0 228 0 0 0 5 276 0 54 0 0 4 0 0 0 58 2 4,447 0 324 0 201 0 392 5,364 122 4.7 0.0 1.1 1.5 3.3 0.7 1.3 3.9 5.8 0.0 1.1 1.6 3.8 0.0 1.1 4.7 6.0 0.0 1.2 1.4 3.4 0.0 1.5 4.9 5.6 0.0 1.6 1.2 3.7 0.9 2.5 4.9 6.0 0.0 1.5 1.2 3.3 1.2 2.2 5.2 3.4 0.0 0.0 0.0 0.0 0.0 0.0 3.4 0.1 0.0 1.8 0.0 0.0 12.4 0.0 1.0 2.2 0.0 0.0 1.0 0.0 0.0 0.4 2.1 4.7 0.0 1.0 1.6 3.3 0.0 1.3 4.0 9.1 0.0 0.5 0.0 2.9 0.0 5.8 8.2 9.1 0.0 0.5 0.4 2.9 0.0 7.4 8.6 10.5 0.0 0.5 0.3 2.9 0.0 9.7 10.1 10.9 0.0 0.7 0.2 2.7 0.5 8.4 10.1 13.1 0.0 0.8 0.3 2.7 0.5 7.4 11.7 2.4 0.0 0.0 0.0 0.0 0.0 35.4 2.5 0.1 0.0 2.9 0.0 0.0 0.0 0.0 1.3 3.5 0.0 0.0 0.1 0.0 0.0 0.3 3.3 9.1 0.0 0.3 0.0 2.9 0.0 5.8 8.3 0.3 0.0 1.4 0.0 0.3 0.0 0.1 0.3 1.9 0.0 7.9 1.4 1.8 0.0 0.4 1.7 1.5 0.0 6.2 0.9 1.4 0.0 0.2 1.2 0.7 0.0 4.2 0.4 0.9 0.1 0.1 0.6 0.3 0.0 2.2 0.3 0.4 0.0 0.0 0.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.3 0.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 -0.1 0.0 0.0 0.0 0.0 0.3 0.0 1.3 0.0 0.3 0.0 0.1 0.3 0 8,157 2 0 7,350 2 0 6,073 2 0 5,088 3 0 4,831 4 0.0 68.8 -50.0 0 0 0 0 47 2 0 0 0 0 8,111 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0 0.0 0.0 0 0 0 0 0 0 0 0 0 0 0 0 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 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����������������������������������������������������������������������������������� 857 855 847 835 819 4.6 161 534 120 42 66,156 1,417 102 54,961 122,637 64,175 1,455 379 53,860 119,870 60,998 41 445 53,588 115,073 62,747 41 537 53,130 116,455 62,207 40 669 50,039 112,954 6.3 3,442.5 -84.8 9.8 8.6 7,930 0 0 1 7,932 12,052 6 40 61 12,159 5,014 14 33 286 5,347 41,161 1,397 29 54,613 97,201 Maximum Credit Exposure by Asset Type 1-4 family residential loans�������������������������������������������������������������������������������� Home equity, credit card receivables, auto, and other consumer loans��������� Commercial and industrial loans����������������������������������������������������������������������� All other loans, leases, and other assets���������������������������������������������������������� Total credit exposure������������������������������������������������������������������������������������������������� 14,139 135 81 13,420 27,776 15,587 132 90 13,115 28,925 14,996 20 77 12,969 28,061 14,196 21 77 12,809 27,103 13,705 21 62 10,481 24,269 3.2 542.9 30.6 28.0 14.5 132 0 0 1 134 1,866 3 29 42 1,941 2,997 3 32 13 3,044 9,146 129 20 13,363 22,658 Support for Securitization Facilities Sponsored by Other Institutions Number of institutions reporting securitization facilities sponsored by others������� Total credit exposure������������������������������������������������������������������������������������������������� 162 30,579 166 29,581 155 29,189 129 10,206 80 7,467 102.5 309.5 23 31 89 248 35 144 15 30,156 Total unused liquidity commitments������������������������������������������������������������������������� 626 514 504 418 846 -26.0 0 0 0 626 5,783,491 5,892,026 5,956,566 5,995,635 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 (%)**������������������������������������������������������������� 5,749,124 -4.1 4,472 87,085 9,895 10,009 11,649 10,699 10,653 -7.1 5 0 104,319 5,553,249 52 9,838 62,396 61,364 74,623 70,087 63,181 -1.2 0 0 1,557 60,840 4,675 99 5.4 4,793 150 5.5 2,963 164 5.5 3,576 156 3.8 5,164 13 3.4 -9.5 661.5 37 0 1.0 148 3 2.0 178 3 2.3 4,313 92 6.4 * 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 2011, Volume 5, No. 2 INSURANCE FUND INDICATORS DIF Reserve Ratio Rises 10 Basis Points to -0.02 Percent ■ Insured Deposits Grow by 1.4 Percent ■ 26 Institutions Failed during First Quarter ■ $894 Billion Temporarily Insured in Noninterest-bearing Transaction Accounts ■ Total assets of the nation’s 7,574 FDIC-insured commercial banks and savings institutions increased by 0.7 percent ($94.7 billion) during the first quarter of 2011. Total deposits increased by 1.9 percent ($178.8 billion), domestic office deposits increased by 1.5 percent ($117.4 billion), and foreign office deposits increased by 4.0 percent ($61.4 billion). Domestic noninterest-bearing deposits increased by 3.5 percent ($58.3 billion) and domestic interest-bearing deposits increased by 1.0 percent ($59.1 billion). For the 12 months ending March 31, total domestic deposits grew by 3.9 percent ($298.2 billion), as interest-bearing deposits increased by 1.2 percent ($76.8 billion) and non-interest-bearing deposits rose by 14.5 percent ($221.3 billion). coverage for noninterest-bearing transaction accounts from December 31, 2010, through December 31, 2012, regardless of the balance in the account and the ownership capacity of the funds. The unlimited coverage is available to all depositors, including consumers, businesses and government entities. The coverage is separate from, and in addition to, the insurance coverage provided for a depositor’s other accounts held at an FDIC-insured bank.3 Insured commercial banks and savings institutions had $1.75 trillion in domestic noninterest-bearing deposits on March 31, 2011, 60 percent ($1.05 trillion) of which was in noninterestbearing transaction accounts larger than $250,000. Of this total, $894 billion exceeded the basic coverage limit of $250,000 per account, but was fully insured by the temporary unlimited coverage. Banks with under $10 billion in assets funded 3.3 percent of their assets with deposits receiving the temporary unlimited coverage. Banks with more than $10 billion in assets had deposits receiving temporary coverage equal to 7.6 percent of assets. The table on the following page shows the distribution of accounts receiving unlimited coverage on noninterest-bearing transaction accounts by institution asset size. Brokered deposits decreased by 1.7 percent ($9.8 billion) during the first quarter. At the end of the first quarter of 2011, 42 percent (3,215) of FDIC-insured banks and thrifts used brokered deposits and 798 of these institutions had brokered deposits that exceeded 10 percent of their domestic deposits. Reciprocal brokered deposits spread among 1,471 institutions totaled $28.6 billion, representing 5.1 percent of total outstanding brokered deposits.1 Data newly provided in quarterly financial reports on deposits that institutions obtained through listing services indicate that 1,359 institutions held such deposits, which in aggregate amounted to $40.8 billion.2 Total estimated insured deposits increased by 1.4 percent in the quarter ending March 31, 2011, and rose by a total of 16.7 percent over the past four quarters. The large four-quarter increase was primarily attributable to the additional temporary coverage of non- interest bearing transaction accounts authorized by the Dodd-Frank Act. For institutions existing at the start and the end of the most recent quarter, insured deposits increased during the quarter at 5,114 institutions (68 percent), decreased at 2,427 institutions (32 percent), and remained unchanged at 32 institutions. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), enacted on July 21, 2010, provides temporary unlimited deposit insurance Reciprocal brokered deposits are deposits that an insured depository institution receives through a deposit placement network on a reciprocal basis, such that: (1) For any deposit received, the institution (as agent for depositors) places the same amount with other insured depository institutions through the network; and (2) each member of the network sets the interest rate to be paid on the entire amount of funds it places with other network members. 2 Listing service deposits are obtained as a result of a bank having its rates listed by a deposit service that is compensated for the listing by either the bank listing the rates or by the person or entities who view the listed rates. 1 FDIC Quarterly Beginning July 21, 2011, per Dodd-Frank insured institutions will no longer be prohibited from paying interest on commercial demand deposits. At that time, if an institution modifies the terms of its demand deposit accounts so that the account may earn interest, the account will no longer satisfy the definition of a noninterest-bearing transaction account, and will no longer be eligible for the temporary unlimited coverage. 3 14 2011, Volume 5, No. 2 Quarterly Banking Profile Insured Commercial Banks and Savings Institutions as of March 31, 2011 Distribution of Noninterest-Bearing Domestic Deposits, by Asset Size Dodd - Frank Domestic Noninterest-Bearing Transaction Accounts Larger than $250,000 Asset Size Less than $1 Billion $1 - $10 Billion $10 - $50 Billion $50 - $100 Billion Over $100 Billion Total Number of Institutions 6,904 563 71 17 19 7,574 Total Assets ($ Bil.) 1,431.5 1,429.1 1,411.5 1,179.0 7,963.6 13,414.7 Total ($ Bil.) 59.2 80.5 97.5 70.8 745.4 1,053.3 Other NoninterestAmount above Average Bearing the $250,000 Average Number of Deposits* Coverage Limit Account Accounts per ($ Bil.) ($ Bil.) Size ($000) Institution 37.5 682 13 112.7 58.3 904 158 77.7 78.9 1,314 1,045 64.6 59.3 1,550 2,685 39.0 659.8 2,178 18,012 400.0 893.9 1,651 84 694.1 * Includes noninterest-bearing transaction accounts smaller than $250,000 and noninterest-bearing deposits not classified as transaction accounts. The condition of the Deposit Insurance Fund (DIF) continues to improve. The DIF increased by $6.3 billion during the first quarter of 2011 to negative $1.0 billion (unaudited), the fifth consecutive quarterly increase. Assessment income of $3.5 billion and a $3.1 billion negative provision for insurance losses were the primary contributors to the improvement in the DIF balance. Interest earnings, combined with unrealized gains on available-for-sale securities and other net revenue, increased the fund by another $151 million. Operating expenses reduced the fund balance by $395 million. assets minus average tangible equity. Revisions to insurance assessment rates and pricing rules for large banks (banks with assets greater than $10 billion) also became effective on that date. The Fourth Quarter 2010 Quarterly Banking Profile includes a more detailed explanation of these changes. Dodd-Frank required that, for at least five years, the FDIC must make available to the public the reserve ratio and the DRR using both estimated insured deposits and the new assessment base. The new assessment base will require some changes in reporting, so only an estimate is available at this time. As of March 31, 2011, the FDIC estimates that the reserve ratio would have been -0.01 percent using the new assessment base (compared to -0.02 percent using estimated insured deposits) and that the proposed 2 percent DRR using estimated insured deposits would have been approximately 1 percent using the estimated new assessment base. The number of bank failures has fallen three quarters in a row. A total of 26 insured institutions with combined assets of $9.8 billion failed during the first quarter of 2011, at an estimated cost to the DIF of $1.9 billion. The DIF’s reserve ratio was negative 0.02 percent on March 31, 2011, up from negative 0.12 percent at December 31, 2010, and the negative 0.39 percent low point reached at the end of 2009. Author: Effective April 1, 2011, the deposit insurance assessment base has changed to average consolidated total FDIC Quarterly 15 Kevin Brown, Sr. Financial Analyst Division of Insurance and Research (202) 898-6817 2011, Volume 5, No. 2 Table I-B. Insurance Fund Balances and Selected Indicators Deposit Insurance Fund* 1st 4th 3rd 2nd Quarter Quarter Quarter Quarter 2010 2009 2009 2009 -$20,862 -$8,243 $10,368 $13,007 1st Quarter 2011 -$7,352 4th Quarter 2010 -$8,009 3rd Quarter 2010 -$15,247 2nd Quarter 2010 -$20,717 3,484 3,498 3,592 3,242 3,278 3,042 28 39 40 64 62 0 395 0 452 0 414 0 382 0 345 -3,089 2,446 -3,763 -2,552 66 48 94 57 6,329 -30 657 Ending Fund Balance����������� Percent change from four quarters earlier��������� -1,023 NM Reserve Ratio (%)����������������� -0.02 (dollar figures in millions) Beginning Fund Balance����� 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����� Number of institutions reporting������������������������� 4th Quarter 2008 $34,588 3rd Quarter 2008 $45,217 2nd Quarter 2008 $52,843 1st Quarter 2008 $52,413 2,615 996 881 640 448 2,965 9,095 76 176 240 212 277 526 651 618 0 379 732 328 521 298 136 266 302 290 473 249 0 256 0 238 3,021 17,766 21,694 11,615 6,637 19,163 11,930 10,221 525 55 22 2,721 308 375 2 15 16 1 0 163 7,238 -61 5,470 149 145 -313 -12,619 -770 -18,611 -957 -2,639 -331 -4,269 551 -17,312 -346 -10,629 1,559 -7,626 127 430 -7,352 -8,009 -15,247 -20,717 -20,862 -8,243 10,368 13,007 17,276 34,588 45,217 52,843 NM NM NM NM NM NM -77.07 -75.39 -67.04 -33.17 -11.73 4.13 -0.12 -0.15 -0.28 -0.38 -0.39 -0.16 0.22 0.27 0.36 0.76 1.01 1.19 5,437,760 5,472,259 Estimated Insured Deposits**������������������������������ 6,388,688 6,302,499 Percent change from four quarters earlier��������� 16.75 16.55 Domestic Deposits��������������� 8,006,187 Percent change from four quarters earlier��������� 3.94 1st Quarter 2009 $17,276 5,407,742 5,315,920 4,817,783 4,831,748 4,750,783 1.99 12.87 13.26 13.83 16.96 7.83 8.87 10.68 7.13 5.50 4.55 7,887,746 7,753,409 7,681,284 7,702,447 7,705,353 7,561,334 7,561,996 7,546,996 7,505,408 7,230,326 7,036,264 7,076,717 2.37 2.54 1.58 2.06 2.66 4.58 7.47 6.65 8.43 7.15 5.04 5.58 7,668 7,771 7,840 7,944 8,022 8,109 8,205 8,257 8,315 8,394 8,462 8,505 7,584 5,421,718 Deposit Insurance Fund Balance and Insured Deposits ($ Millions) DIF Reserve Ratios Percent of Insured Deposits 1.19 1.01 0.76 0.36 0.27 0.22 -0.16 -0.39 -0.38 -0.28 -0.15 -0.12 -0.02 3/08 9/08 3/09 9/09 4,545,198 4,468,086 4,438,256 3/10 9/10 3/11 DIF Balance DIF-Insured Deposits 3/08 $52,843 $4,438,256 6/08 45,217 4,468,086 9/08 34,588 4,545,198 12/08 17,276 4,750,783 4,831,748 3/09 13,007 6/09 10,368 4,817,783 9/09 -8,243 5,315,920 12/09 -20,862 5,407,742 3/10 -20,717 5,472,259 6/10 -15,247 5,437,760 9/10 -8,009 5,421,718 12/10 -7,352 6,302,499 3/11 -1,023 6,388,688 Table II-B. Problem Institutions and Failed/Assisted Institutions (dollar figures in millions) Problem Institutions Number of institutions������������������������������������������������ Total assets����������������������������������������������������������������� 2011*** 888 $397,252 2010*** 775 $431,189 2010 2009 2008 884 $390,017 702 $402,782 252 $159,405 2007 76 $22,189 2006 50 $8,265 Failed Institutions 25 3 Number of institutions������������������������������������������������ 26 41 157 140 0 $371,945 $2,615 Total assets����������������������������������������������������������������� $9,839 $22,140 $92,085 $169,709 $0 Assisted Institutions**** 5 0 Number of institutions������������������������������������������������ 0 0 0 8 0 $1,306,042 0 $0 $0 $0 $1,917,482 Total assets����������������������������������������������������������������� 0 * Quarterly financial statement results are unaudited. NM - Not meaningful ** Beginning in the third quarter of 2009, estimates of insured deposits are based on a $250,000 general coverage limit. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) temporarily provides unlimited coverage for noninterest bearing transaction accounts for two years beginning December 31, 2010. Beginning in the fourth quarter of 2010, estimates of insured deposits include the entire balance of noninterest bearing transaction accounts. ***Through March 31 **** 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. FDIC Quarterly 16 2011, Volume 5, 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, 2011 Commercial Banks and Savings Institutions Total Assets Domestic Deposits* Est. Insured Deposits FDIC-Insured Commercial Banks����������������������������������������������� FDIC-Supervised������������������������������������������������������������������� OCC-Supervised�������������������������������������������������������������������� Federal Reserve-Supervised������������������������������������������������� 6,453 4,267 1,366 820 $12,157,324 1,941,847 8,483,600 1,731,876 $7,063,538 1,485,978 4,529,753 1,047,806 $5,547,794 1,209,714 3,516,251 821,829 FDIC-Insured Savings Institutions���������������������������������������������� OTS-Supervised Savings Institutions������������������������������������ FDIC-Supervised State Savings Banks��������������������������������� 1,121 724 397 1,257,331 931,664 325,667 926,968 685,654 241,314 826,107 613,452 212,656 Total Commercial Banks and Savings Institutions���������������������� 7,574 13,414,655 7,990,506 6,373,901 Other FDIC-Insured Institutions U.S. Branches of Foreign Banks������������������������������������������������� 10 30,790 15,682 14,786 Total FDIC-Insured Institutions���������������������������������������������������� .. 7,584 13,445,445 8,006,187 6,388,688 * Excludes $1.6 trillion in foreign office deposits, which are uninsured. Table IV-B. Distribution of Institutions and Domestic Deposits Among Risk Categories Quarter Ending December 31, 2010 (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 1,791 1,524 1,683 325 1,236 216 567 136 149 41 Percent of Total Institutions 23.36 19.87 21.95 4.24 16.12 2.82 7.39 1.77 1.94 0.53 Domestic Deposits $791 1,709 1,931 382 2,256 496 186 80 41 15 Percent of Total Domestic Deposits 10.03 21.67 24.48 4.84 28.60 6.29 2.36 1.01 0.52 0.19 Note: Institutions are categorized based on supervisory ratings, debt ratings and financial data as of December 31, 2010. * Assessment rates with a given risk category vary for several reasons, see 12 CFR Part 327. FDIC Quarterly 17 2011, Volume 5, No. 2 Notes to Users 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 Insur ance Corporation (FDIC). These notes are an integral part of this publication and provide information regarding the com parability 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. Troubled Debt Restructurings – Many institutions are restructuring or modifying the terms of loans to provide payment relief for those borrowers who have suffered deterioration in their financial condition. Such loan restructurings may include, but are not limited to, reductions in principal or accrued interest, reductions in interest rates, and extensions of the maturity date. Modifications may be executed at the original contractu- 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-ofperiod amount plus end-of-period amount plus any interim FDIC Quarterly 18 2011, Volume 5, No. 2 Quarterly Banking Profile al interest rate on the loan, a current market interest rate, or a below-market interest rate. Many of these loan modifications meet the definition of a troubled debt restructuring (TDR). The TDR accounting and reporting standards are set forth in ASC Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors (formerly FASB Statement No. 15, “Accounting by Debtors and Creditors for Troubled Debt Restructurings,” as amended). This guidance specifies that a restructuring of a debt constitutes a TDR if, at the date of restructuring, the creditor for economic or legal reasons related to a debtor’s financial difficulties grants a concession to the debtor that it would not otherwise consider. In the Call Report, until a loan that is a TDR is paid in full or otherwise settled, sold, or charged off, it must be reported in the appropriate loan category, as well as identified as a performing TDR loan, if it is in compliance with its modified terms. If a TDR is not in compliance with its modified terms, it is reported as a past due and nonaccrual loan in the appropriate loan category, as well as distinguished from other past due and nonaccrual loans. To be considered in compliance with its modified terms, a loan that is a TDR must not be in nonaccrual status and must be current or less than 30 days past due on its contractual principal and interest payments under the modified repayment terms. A loan restructured in a TDR is an impaired loan. Thus, all TDRs must be measured for impairment in accordance with ASC Subtopic 310-10, Receivables—Overall (formerly FASB Statement No. 114, “Accounting by Creditors for Impairment of a Loan,” as amended), and the Call report Glossary entry for “Loan Impairment.” Accounting for Loan Participations – Amended ASC Topic 860 (formerly FAS 166) 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 amended ASC Topic 860 (January 1, 2010, for banks with calendar year fiscal year), including advances under lines of credit that are transferred on or after the effective date of amended ASC Topic 860 even if the line of credit agreements were entered into before this effective date. Therefore, banks with a calendar year fiscal year must account for transfers of loan participations on or after January 1, 2010, in accordance with amended ASC Topic 860. In general, loan participations transferred before the effective date of amended ASC Topic 860 are not affected by this new accounting standard. Under amended ASC Topic 860, if a transfer of a portion of an entire financial asset meets the definition of a “participating interest,” then the transferor (normally the lead lender) must evaluate whether the transfer meets all of the conditions in this accounting standard to qualify for sale accounting. 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- temporary. To determine whether the impairment is otherthan-temporary, an institution must apply other pertinent guidance in ASC Topic 320 , Investments-Debt and Equity Securities—Overall; ASC Subtopic 325-20, InvestmentsOther—Cost Method Investments; and ASC Subtopic 32540, Investments-Other—Beneficial Interests in Securitized Financial Assets (formerly paragraph 16 of FASB Statement FDIC Quarterly 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 ASC Topic 320, if an institution intends to sell a debt security or it is more likely than not that it will be required to sell the debt security before recovery of its amortized cost basis, an otherthan-temporary impairment has occurred and the entire difference between the security’s amortized cost basis and its fair value at the balance sheet date must be recognized in earnings. In these cases, the fair value of the debt security would become its new amortized cost basis. In addition, under ASC Topic 320, 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. ASC Topic 805 (formerly Business Combinations and Noncontrolling (Minority) Interests) – In December 2007, the FASB issued Statement No. 141 (Revised), Business Combinations FAS 141(R)), and Statement 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. ASC Topic 820 (formerly FASB Statement No. 157 Fair Value Measurements issued in September 2006) and ASC Topic 825 (formerly 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 19 2011, Volume 5, No. 2 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-for-sale 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. ASC Topic 715 (formerly 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 in subsequent periods as net periodic benefit costs are recognized in earnings. ASC Topic 860 (formerly 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. ASC Topic 815 (formerly 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 principal-only strips are not subject to FAS 133. Purchased Impaired Loans and Debt Securities – ASC Topic 310 (formerly 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 FDIC Quarterly 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, ASC Topic 860 (formerly FASB Statement No. 140) requires that loans with this buy-back option must be brought back on the issuer’s books as assets. The rebooking of GNMA loans is required regardless of whether the issuer intends to exercise the 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. ASC Topics 860 & 810 (formerly 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 revised 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 revised 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 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. ASC Topic 740 (formerly FASB Interpretation No. 48 on Uncertain Tax Positions) – FASB Interpretation No. 48, Accounting for 20 2011, Volume 5, No. 2 Quarterly Banking Profile 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. ASC Topic 718 (formerly 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 ASC Topic 815 (formerly 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 Accounting Standards Codification – In June 2009, the FASB issued Statement No. 168, The FASB Accounting Standards CodificationTM and the Hierarchy of Generally Accepted Accounting Principles (FAS 168), to establish the FASB Codification as the single source of authoritative nongovernmental U.S. generally accepted accounting principles (U.S. GAAP). The FASB Codification reorganizes existing U.S. accounting and reporting standards issued by the FASB and other related private-sector standard setters, and all guidance contained in the FASB Codification carries an equal level of authority. All previously existing accounting standards documents are superseded as described in FAS 168. All other accounting literature not included in the FASB Codification is nonauthoritative. The FASB Codification can be accessed at http://asc.fasb.org/. The FASB Codification is effective for interim and annual periods ending after September 15, 2009. This is an FFIEC reference guide at http://www.ffiec.gov/pdf/ ffiec_forms/CodificationIntroduction_201006.pdf. 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. 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). DEFINITIONS (in alphabetical order) All other assets – total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, investment in unconsolidated subsidiaries, customers’ liability on acceptances outstanding, assets held in trading accounts, federal funds sold, securities purchased with agreements to resell, fair market value of derivatives, 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. FDIC Quarterly 21 2011, Volume 5, No. 2 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. Begin ning 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 foreclosed 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. FDIC Quarterly Long-term assets (5+ years) – loans and debt securities with remaining maturities or repricing intervals of over five years. Maximum credit exposure – the maximum contractual credit exposure remaining under recourse arrangements and other seller-provided credit enhancements provided by the reporting bank to securitizations. Mortgage-backed securities – certificates of participation in pools of residential mortgages and collateralized mortgage obligations issued or guaranteed by government-sponsored or private enterprises. Also, see “Securities,” below. Net charge-offs – total loans and leases charged off (removed from balance sheet because of uncollectibility), less amounts recovered on loans and leases previously charged off. Net interest margin – the difference between interest and dividends earned on interest-bearing assets and interest paid to depositors and other creditors, expressed as a percentage of average earning assets. No adjustments are made for interest income that is tax exempt. Net loans to total assets – loans and lease financing receivables, net of unearned income, allowance and reserves, as a percent of total assets on a consolidated basis. Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and extraordinary items. Income taxes subtracted from operating income have been adjusted to exclude the portion applicable to securities gains (or losses). Noncurrent assets – the sum of loans, leases, debt securities, and other assets that are 90 days or more past due, or in nonaccrual status. Noncurrent loans & leases – the sum of loans and leases 90 days or more past due, and loans and leases in nonaccrual status. Number of institutions reporting – the number of institutions that actually filed a financial report. 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 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, 22 2011, Volume 5, No. 2 Quarterly Banking Profile 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 average 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) Tier 1 Risk-Based Capital* Total Risk-Based Capital* Well-capitalized Adequately capitalized Undercapitalized Significantly undercapitalized Critically undercapitalized 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 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: Total Base Assessment Rates* >2 Risk Category I 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 ≤2 – * As a percentage of risk-weighted assets. 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. *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 pur poses 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 Supervisory Group Capital Category 1. Well Capitalized 2. Adequately Capitalized 3. Undercapitalized FDIC Quarterly A I 12–16 bps II 22 bps B C II 22 bps III 32 bps III 32 bps IV 45 bps 23 2011, Volume 5, No. 2 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 was collected September 30, 2009, at the same time that the risk-based assessment for the second quarter of 2009 was 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 riskbased assessment. Prepaid Deposit Insurance Assessments – In November 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 riskbased 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. 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 FDIC Quarterly 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. (Section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) provides temporary unlimited insurance coverage to noninterestbearing transaction accounts at all FDIC-insured institutions. The separate coverage for these accounts becomes effective on December 31, 2010, and ends on December 31, 2012.) 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 com mitments 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 24 2011, Volume 5, No. 2