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FDIC Quarterly
Quarterly Banking Profile:
First Quarter 2015
Highlights:
■

Industry Net Income Rises 6.9 Percent to $39.8 Billion

■

Net Operating Revenue Is Up 2.6 Percent Year
Over Year

■

Earnings for Community Banks Grew 16 Percent From
First Quarter 2014

■

Net Interest Income and Noninterest Income for
Community Banks Increased From the Year-Ago Period

■

DIF Reserve Ratio Rises 2 Basis Points to 1.03 Percent

■

Changes to Risk-Based Assessments Go Into Effect

2015, Volume 9, Number 2

The FDIC Quarterly is published by the Division of Insurance and Research of the Federal Deposit
Insurance Corporation and contains a comprehensive summary of the most current financial results
for the banking industry. Feature articles appearing in the FDIC Quarterly range from timely analysis
of economic and banking trends at the national and regional level that may affect the risk exposure of
FDIC-insured institutions to research on issues affecting the banking system and the development of
regulatory policy.
Single copy subscriptions of the FDIC Quarterly can be obtained through the FDIC Public Information Center, 3501 Fairfax Drive, Room E-1002, Arlington, VA 22226. E-mail requests should be
sent to publicinfo@fdic.gov. Change of address information also should be submitted to the Public
Information Center.
The FDIC Quarterly is available online by visiting the FDIC website at www.fdic.gov. To receive
e-mail notification of the electronic release of the FDIC Quarterly and the individual feature articles,
subscribe at www.fdic.gov/about/subscriptions/index.html.

Chairman

Martin J. Gruenberg

Director, Division of Insurance
and Research

Diane Ellis

Executive Editor

Richard A. Brown

Managing Editors

Matthew Green
Jack Reidhill
Philip A. Shively

Editors

Clayton Boyce
Peggi Gill
Frank Solomon

Publication Manager

Lynne Montgomery

Media Inquiries

(202) 898-6993

FDIC Quarterly
2015, Volume 9, Number 2

Quarterly Banking Profile: First Quarter 2015
FDIC-insured institutions reported aggregate net income of $39.8 billion in the first quarter of 2015, up
$2.6 billion (6.9 percent) from a year earlier. The increase in earnings was mainly attributable to a
$4.3 billion rise in net operating revenue (net interest income plus total noninterest income). Of the
6,419 insured institutions in the first quarter of 2015, nearly two-thirds (62.7 percent) reported year-overyear growth in quarterly earnings. The proportion of banks that were unprofitable during the first quarter
fell to 5.6 percent from 7.4 percent a year earlier. See page 1.

Community Bank Performance
Community banks—which represent 93 percent of insured institutions—reported net income of
$4.9 billion in the first quarter, up $690.9 million (16.4 percent) from one year earlier. The increase
was driven by higher net interest income and noninterest income, coupled with lower loan-loss provisions. In the first quarter of 2015, loan balances at community banks grew at a faster pace than in the
industry, asset quality indicators continued to show improvement, and community banks accounted for
44 percent of small loans to businesses. See page 15.

Insurance Fund Indicators
Estimated insured deposits increased by 2.3 percent in the first quarter of 2015 and increased by
3.6 percent over the past four quarters. The DIF reserve ratio rose to 1.03 percent on March 31, 2015,
up from 1.01 percent at December 31, 2014, and 0.80 percent at March 31, 2014. Four FDIC-insured
institutions failed during the quarter. See page 23.

The views expressed are those of the authors and do not necessarily reflect official positions of the Federal Deposit Insurance
Corporation. Some of the information used in the preparation of this publication was obtained from publicly available sources
that are considered reliable. However, the use of this information does not constitute an endorsement of its accuracy by the
Federal Deposit Insurance Corporation. Articles may be reprinted or abstracted if the publication and author(s) are credited.
Please provide the FDIC’s Division of Insurance and Research with a copy of any publications containing reprinted material.

Quarterly Banking Profile

First Quarter 2015

INSURED INSTITUTION PERFORMANCE
Industry Net Income Rises 6.9 Percent to $39.8 Billion
Net Operating Revenue Is Up 2.6 Percent Year Over Year
Average Net Interest Margin Falls to 3.02 Percent
Community Bank Earnings Growth Outpaces Industry (see page 15)
“Problem List” Shrinks From 291 Banks to 253

■
■
■
■
■

higher, while noninterest income from the sale, securitization, and servicing of 1-to-4 family residential
real estate loans was up $545 million (15.6 percent)
from the year-earlier quarter. A majority of banks—
57.3 percent—reported year-over-year growth in noninterest income.

Earnings Growth Is Broad-Based
Rising revenues helped lift the quarterly net income of
FDIC-insured institutions to $39.8 billion in first quarter 2015. This is $2.6 billion (6.9 percent) more than
the industry earned in first quarter 2014. The improvement in net income was attributable to a $4.3 billion
(2.6 percent) increase in net operating revenue
(the sum of net interest income and total noninterest income). Almost two out of every three banks
(62.7 percent) reported higher profits than the year
before, while only 5.6 percent were unprofitable. This
is the lowest percentage of unprofitable institutions
since second quarter 2005. The average return on assets
(ROA) rose slightly to 1.02 percent from 1.01 percent
in first quarter 2014.

Margins Remain Under Pressure
Net interest income rose to $105.7 billion in the
first quarter, up $1.5 billion (1.5 percent) from the
year before. Total interest income was $1.2 billion
(1 percent) higher, while total interest expense was
$343 million (2.9 percent) lower. The average net
interest margin (NIM) fell to 3.02 percent, from
3.16 percent a year earlier, as higher-yielding assets
matured and were replaced by lower-yielding investments in a low-interest-rate environment. Fewer than
half of all banks—43.2 percent—reported year-overyear improvement in their quarterly NIMs.

Trading Income Registers Strong Growth
Noninterest income totaled $62.7 billion, an increase
of $2.8 billion (4.6 percent) compared with first quarter
2014. Trading revenue was $1.5 billion (23.9 percent)
Chart 1

Chart 2
Unprofitable Institutions and Institutions
With Increased Earnings

Quarterly Net Income

Billions of Dollars
$50

All FDIC-Insured Institutions

$40

35.2
28.7 28.5

$30
$20

17.4

$10

70

Percentage of Institutions With Year-Over-Year
Quarterly Income Growth

60

25.3

50
40
30

-1.7
-6.1
-12.6

-$20

40.4
39.8
39.8 40.1
38.2
38.4
37.5
37.3
36.5
36.1
34.8 34.4
34.5

2.1

$0
-$10

23.8
21.4
20.9

Percentage of All FDIC-Insured Institutions
80

20

Securities and Other Gains/Losses, Net
Net Operating Income

10

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
2009
2010
2011
2012
2013
2014 2015

0
2006

2007

Source: FDIC.

Source: FDIC.

FDIC Quarterly

Percentage of Institutions With Quarterly Losses

1

2008

2009

2010

2011

2012

2013

2014

2015

2015, Volume 9, No. 2

from 1.96 percent to 1.83 percent, a seven-year low.
Noncurrent balances fell in all major loan categories
except loans to commercial and industrial (C&I)
borrowers. Noncurrent C&I loans rose by $998 million
(11.7 percent), and the noncurrent rate on C&I loans
rose from 0.50 percent to 0.54 percent. These are
the two lowest noncurrent rates for C&I loans in the
31 years for which data are available. At the end of the
quarter, $54.5 billion (36.6 percent) of total noncurrent loan balances carried U.S. government guarantees or were covered by loss-sharing agreements with
the FDIC.

Loan Losses Improve Across All Major
Loan Categories
For a third consecutive quarter, loan-loss provisions posted a year-over-year increase. Banks set
aside $8.4 billion in loss provisions, an increase of
$756 million (9.9 percent) from first quarter 2014.
This is the largest quarterly total for loss provisions
since second quarter 2013. Net charge-offs fell, year
over year, for the 19th quarter in a row. Banks charged
off $9 billion in uncollectible loans, a decline of
$1.4 billion (13.2 percent) compared with first quarter 2014. The annualized net charge-off rate fell to
0.43 percent from 0.52 percent the year before. This
is the lowest quarterly charge-off rate since third quarter 2006. Charge-offs were lower across all major loan
categories. The largest year-over-year declines occurred
in home equity lines of credit (down $352 million,
38.8 percent) and credit cards (down $293 million,
5.3 percent).

Reserve Reductions Diminish
Banks reduced their reserves for loan losses by
$1.6 billion (1.3 percent) during the quarter. This is the
20th consecutive quarter that the industry’s loss reserves
have declined, but it is the smallest quarterly decline
during this period. Reserves totaled $121 billion at the
end of the quarter, down $142.1 billion (54 percent)
from the peak level of five years ago. The average
ratio of reserves-to-total loans and leases fell from
1.48 percent to 1.45 percent, the lowest level since
fourth quarter 2007. The “coverage ratio” of reserves-tononcurrent loans improved for a 10th consecutive quarter, rising from 75.4 percent to 79.1 percent as a result
of the decline in noncurrent loan balances.

Noncurrent Loan Rate Continues to Fall
Noncurrent loan balances declined for a 20th consecutive quarter. The amount of loans that were noncurrent
(90 days or more past due, or in nonaccrual status) fell
by $9.7 billion (6 percent) in the first three months
of 2015. The average noncurrent loan rate declined

Chart 3

Chart 4
Quarterly Noninterest Income From Sale, Securitization,
and Servicing of 1-to-4 Family Residential Mortgage Loans*

Quarterly Net Operating Revenue
Billions of Dollars
$200

All FDIC-Insured Institutions

Billions of Dollars
$10
8.8
$9
8.0
$8
7.3
$7
$6
$5
$4
$3
$2
$1
$0
1
2
3
2012

$180
$160
$140

Quarterly Noninterest Income

$120
$100
$80
$60

Quarterly Net Interest Income

$40
$20
$0

123412341234123412341234123412341
2007 2008 2009 2010 2011 2012 2013 2014 2015

7.5

4.7

5.3

5.0

4.8
3.7

3.5

4

1

2
3
2013

4

1

2

3
2014

4

4.0

1
2015

Source: FDIC.
*Insured institutions with assets greater than $1 billion, and institutions with more than
$10 million in originations, purchases, or mortgages held for sale.

Source: FDIC.

FDIC Quarterly

8.6
7.4

2

2015, Volume 9, No. 2

Quarterly Banking Profile
New Capital Rules Take Effect

Loans Post a $52.5 Billion Increase

Equity capital increased by $30.7 billion (1.8 percent)
during the quarter, and the average equity-to-assets
ratio rose from 11.15 percent to 11.18 percent.
Retained earnings added $17.5 billion to equity,
$266 million (1.5 percent) more than the year before.
New regulatory capital rules that took effect in the
first quarter added a new regulatory capital element,
the Common Equity Tier 1 (CET1) capital ratio, to
the Prompt Corrective Action (PCA) capital requirements. For 96.8 percent of all institutions, the CET1
capital ratio was identical to their Tier 1 risk-based
capital ratio. The average CET1 ratio for the industry
at the end of the quarter was 12.65 percent, compared
with an average of 12.75 percent for the Tier 1 riskbased capital ratio. The new rules also added elements
of accumulated other comprehensive income (AOCI)
to the calculation of Tier 1 capital, unless institutions elected to opt out of the inclusion. More than
99 percent of banks eligible for the election chose to
opt out.

Total assets of insured institutions increased by
$224.3 billion (1.4 percent) to $15.8 trillion during
the first three months of 2015. Total loan and lease
balances rose by $52.5 billion (0.6 percent), as
C&I loans increased by $32.4 billion (1.9 percent),
real estate loans secured by nonfarm nonresidential real estate properties increased by $13.4 billion
(1.2 percent), and residential mortgage loans rose
by $13.2 billion (0.7 percent). Credit card balances
and agricultural production loans posted seasonal
declines of $38.5 billion (5.4 percent) and $6.5 billion
(8.3 percent), respectively, and home equity lines of
credit (HELOCs) fell by $8.4 billion (1.7 percent). This
is the 24th consecutive quarterly decline for HELOC
balances. Banks’ securities holdings increased by
$48.4 billion (1.5 percent), as mortgage-backed securities rose by $45.2 billion (2.6 percent). Securities designated as held to maturity increased by $42.4 billion
(6.6 percent), and the amount of securities maturing
or repricing in 15 years or more rose by $46.8 billion
(6.5 percent). Banks increased their balances at Federal
Reserve institutions by $65.1 billion (4.7 percent)
during the quarter, to $1.4 trillion, or 9.2 percent of
total industry assets.

Chart 5

Chart 6

Year-Over-Year Change in Quarterly Loan-Loss Provisions

Noncurrent Loan Rate and Quarterly Net Charge-Off Rate

Billions of Dollars
$5

Percent
6

All FDIC-Insured Institutions

0.8

$0

5

All FDIC-Insured Institutions

Noncurrent Loan Rate

-$5
-$10

4

-$15

3

-$20
2

-$25
-$30
-$35

1

-30.7

1

2 3
2011
Source: FDIC.

FDIC Quarterly

Quarterly Net Charge-Off Rate
4

1

2 3
2012

4

1

2 3
2013

4

1

2 3
2014

4

1
2015

0
2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: FDIC.

3

2015, Volume 9, No. 2

Large Denomination Deposits Post Strong Growth

Problem List Is at a Six-Year Low

Total deposits increased by $194.4 billion (1.7 percent),
as deposits in foreign offices declined by $15.8 billion
(1.1 percent), and domestic office deposits rose by
$210.2 billion (2 percent). Deposits in accounts of
less than $250,000, which typically experience strong
growth in first quarters, increased by $110.4 billion
(2.1 percent). Balances in larger-denomination
accounts, which usually have little or no growth in first
quarters, rose by $104.1 billion (2 percent). Nondeposit
liabilities declined by $688 million (0.03 percent), as
banks reduced their Federal Home Loan Bank advances
by $31.2 billion (6.7 percent).

The number of insured commercial banks and savings
institutions filing quarterly financial reports declined
from 6,509 to 6,419 in the first quarter. Mergers
absorbed 86 institutions, while four insured institutions failed. For a fifth consecutive quarter, no new
charters were added. The number of full-time equivalent employees declined by 5,349 to 2,042,596. The
number of institutions on the FDIC’s “Problem List”
declined for the 16th consecutive quarter, falling from
291 to 253. Total assets of problem institutions fell from
$86.7 billion to $60.3 billion.
Author:

Chart 7

Chart 8
Quarterly Change in Loan Balances

Number and Assets of Banks on the “Problem List”

All FDIC-Insured Institutions

Assets (Billions of Dollars)
$500

Billions of Dollars
$300
237
$250
221*
203
178
$200 189
149
134
$150
118
102
91
$100
74 70
65
67
61
53
43
38 51
28
$50
24
$0
-6
-7 -14
-$50
-37
-63
-$100
-107
-116 -109
-126
-$150
-133
-140
-$200
-210
-$250

$450

Number of Problem Banks

Number
1,000
900

$400

800

$350

700

$300

600

$250

500

$200

400
300

$150
$100

1 2 3 41 2 3 4 1 2 3 41 2 3 4 1 2 3 4 12 3 4 1 2 3 4 12 3 4 1
2014 2015
2007
2008
2009
2010
2011
2012
2013

$50

Source: FDIC.
*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.

FDIC Quarterly

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

253

Problem Bank Assets

60

200
100

0
$0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: FDIC.

4

2015, Volume 9, 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��������������������������������������������������������������������������������������

2015**
1.02
9.12
9.48
1.10
0.43
5.82
3.02
6.12
6,419
5,570
849
5.59
253
$60
4
0

2014**
1.01
8.99
9.53
1.51
0.52
3.37
3.16
-5.92
6,730
5,810
920
7.40
411
$126
5
0

2014
1.01
9.01
9.45
1.20
0.49
5.59
3.14
-0.70
6,509
5,643
866
6.16
291
$87
18
0

2013
1.07
9.54
9.40
1.63
0.69
1.94
3.26
12.83
6,812
5,877
935
8.15
467
$153
24
0

2012
1.00
8.91
9.15
2.20
1.10
4.03
3.42
17.78
7,083
6,097
986
11.00
651
$233
51
0

2011
0.88
7.79
9.07
2.61
1.55
4.30
3.60
43.58
7,357
6,292
1,065
16.23
813
$319
92
0

2010
0.65
5.85
8.89
3.11
2.55
1.77
3.76
1,594.54
7,658
6,531
1,127
22.15
884
$390
157
0

* Excludes insured branches of foreign banks (IBAs).
** Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 31.

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

1st Quarter
2015
6,419
2,042,596

4th Quarter
2014
6,509
2,047,945

1st Quarter
2014
6,730
2,058,878

%Change
14Q1-15Q1
-4.6
-0.8

$15,778,062
4,204,281
1,855,339
1,163,396
246,121
483,902
1,749,144
1,383,938
679,967
71,545
955,106
1,940
8,362,075
121,049
8,241,025
3,267,460
19,339
355,868
3,894,371

$15,553,765
4,170,826
1,842,134
1,150,046
238,583
492,326
1,716,785
1,418,253
718,469
78,029
927,666
1,993
8,309,566
122,616
8,186,950
3,219,064
21,987
360,190
3,765,574

$14,910,049
4,075,728
1,823,672
1,117,178
214,832
502,163
1,611,828
1,326,450
658,359
64,911
853,805
1,902
7,930,843
132,324
7,798,519
3,054,515
27,872
365,489
3,663,653

5.8
3.2
1.7
4.1
14.6
-3.6
8.5
4.3
3.3
10.2
11.9
2.0
5.4
-8.5
5.7
7.0
-30.6
-2.6
6.3

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

15,778,062
11,958,325
10,578,146
1,380,179
1,362,926
94,842
590,329
1,771,632
1,764,384

15,553,765
11,763,878
10,367,932
1,395,946
1,387,914
98,083
562,793
1,741,094
1,733,718

14,910,049
11,317,824
9,922,075
1,395,749
1,346,659
95,451
468,793
1,681,321
1,672,584

5.8
5.7
6.6
-1.1
1.2
-0.6
25.9
5.4
5.5

Loans and leases 30-89 days past due�������������������������������������������������������������������������
Noncurrent loans and leases�����������������������������������������������������������������������������������������
Restructured loans and leases��������������������������������������������������������������������������������������
Mortgage-backed securities������������������������������������������������������������������������������������������
Earning assets����������������������������������������������������������������������������������������������������������������
FHLB Advances��������������������������������������������������������������������������������������������������������������
Unused loan commitments���������������������������������������������������������������������������������������������
Trust assets��������������������������������������������������������������������������������������������������������������������
Assets securitized and sold�������������������������������������������������������������������������������������������
Notional amount of derivatives���������������������������������������������������������������������������������������
Full Year
INCOME DATA
2014
Total interest income�������������������������������������������������������������������
$469,780
Total interest expense�����������������������������������������������������������������
47,128
Net interest income��������������������������������������������������������������
422,653
Provision for loan and lease losses��������������������������������������������
29,767
Total noninterest income�������������������������������������������������������������
247,899
Total noninterest expense�����������������������������������������������������������
422,770
Securities gains (losses)�������������������������������������������������������������
3,202
Applicable income taxes�������������������������������������������������������������
68,197
Extraordinary gains, net��������������������������������������������������������������
-117
Total net income (includes minority interests)���������������������
152,903
		
Bank net income������������������������������������������������������������
152,273
Net charge-offs����������������������������������������������������������������������������
39,530
Cash dividends����������������������������������������������������������������������������
90,227
Retained earnings�����������������������������������������������������������������������
62,045
Net operating income�����������������������������������������������������������
150,739

61,386
152,981
79,503
1,773,834
14,102,858
433,044
6,575,698
18,087,298
943,850
205,900,437
Full Year
2013
$470,432
53,286
417,146
32,442
252,518
416,748
4,473
70,018
240
155,170
154,385
53,561
93,162
61,223
151,804

(dollar figures in millions)



FDIC Quarterly

69,984
162,664
84,055
1,728,586
13,882,597
464,279
6,478,520
18,355,578
972,452
221,924,279
1st Quarter
%Change
2015
-0.1
$117,303
-11.6
11,595
1.3
105,708
-8.3
8,368
-1.8
62,656
1.4
103,499
-28.4
1,311
-2.6
17,837
N/M
22
-1.5
39,994
-1.4
39,841
-26.2
9,010
-3.2
22,307
1.3
17,534
-0.7
39,044

69,536
195,242
96,898
1,690,541
13,276,200
392,000
6,218,980
20,181,237
720,668
231,756,607
1st Quarter
2014
$116,129
11,938
104,191
7,612
59,893
102,288
827
17,629
75
37,457
37,264
10,377
19,996
17,268
36,792

-11.7
-21.6
-18.0
4.9
6.2
10.5
5.7
-10.4
31.0
-11.2
%Change
14Q1-15Q1
1.0
-2.9
1.5
9.9
4.6
1.2
58.7
1.2
-70.9
6.8
6.9
-13.2
11.6
1.5
6.1

N/M - Not Meaningful

5

2015, Volume 9, No. 2

TABLE III-A. First Quarter 2015, All FDIC-Insured Institutions
Asset Concentration Groups*
FIRST QUARTER
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������
6,419
Commercial banks�������������������������������������
5,570
Savings institutions�����������������������������������
849
Total assets (in billions)������������������������������������
$15,778.1
Commercial banks�������������������������������������
14,736.6
Savings institutions�����������������������������������
1,041.4
Total deposits (in billions)���������������������������������
11,958.3
Commercial banks�������������������������������������
11,155.5
Savings institutions�����������������������������������
802.8
Bank net income (in millions)���������������������������
39,841
Commercial banks�������������������������������������
36,961
Savings institutions�����������������������������������
2,880
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
15
4
1,464
3,151
12
4
1,447
2,854
3
0
17
297
$489.9
$3,855.3
$254.9
$4,927.0
391.8
3,855.3
249.9
4,574.9
98.1
0.0
5.0
352.0
272.4
2,724.2
212.9
3,855.4
200.7
2,724.2
209.9
3,597.0
71.7
0.0
3.0
258.5
3,703
8,637
746
11,115
2,791
8,637
721
10,350
912
0
24
764

Mortgage Consumer
Lenders
Lenders
556
58
169
42
387
16
$461.7
$181.7
170.6
89.1
291.0
92.6
341.9
154.1
129.6
75.6
212.4
78.6
858
459
444
257
414
202

Other
Specialized
All Other
<$1 Billion
<$1 Billion
387
713
351
628
36
85
$63.6
$132.3
58.9
113.0
4.7
19.3
51.8
111.6
48.5
95.9
3.3
15.7
342
295
190
271
152
25

All Other
>$1 Billion
71
63
8
$5,411.8
5,233.2
178.6
4,233.9
4,074.2
159.7
13,687
13,301
386

3.36
0.33
3.02
1.60
2.65
0.21
1.00
1.47
1.02
9.12
0.43

10.47
0.88
9.59
4.49
6.29
2.34
3.04
4.71
3.04
19.98
2.80

2.58
0.32
2.26
1.83
2.39
0.16
0.88
1.28
0.90
9.50
0.63

3.99
0.46
3.53
0.63
2.49
0.08
1.14
1.37
1.17
10.34
0.02

3.66
0.39
3.27
1.18
2.74
0.11
0.90
1.30
0.91
7.60
0.15

3.26
0.66
2.60
0.83
2.12
0.05
0.72
1.16
0.76
6.49
0.15

3.98
0.45
3.53
1.27
2.59
0.45
1.01
1.64
1.02
10.31
0.60

2.97
0.33
2.64
5.63
5.11
0.04
2.12
2.96
2.18
14.84
0.13

3.88
0.42
3.46
0.83
2.89
0.07
0.86
1.11
0.90
7.71
0.14

2.89
0.19
2.70
1.66
2.43
0.17
1.00
1.49
1.02
9.11
0.41

92.88
60.62
5.59
62.70

107.07
46.43
0.00
66.67

73.40
62.23
0.00
100.00

516.88
63.43
2.46
61.07

108.52
65.69
5.97
68.04

53.40
64.24
8.27
51.26

105.14
54.34
8.62
68.97

123.36
63.33
9.56
50.65

94.57
71.78
6.31
58.20

85.46
58.59
2.82
52.11

89.38

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 ����������������������������
Common equity tier 1 capital 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��������������������

92.57

87.27

93.02

90.35

94.48

95.53

91.49

92.54

88.81

1.45
79.13

3.28
301.94

1.77
82.83

1.47
153.51

1.24
103.79

1.10
39.47

1.15
78.66

1.80
109.74

1.42
86.65

1.34
52.20

1.10
11.18
9.48
12.65
12.75
14.26
68.91
52.23
67.04

0.83
15.30
12.59
12.86
12.98
15.51
133.00
73.97
54.49

0.78
9.52
8.32
12.40
12.42
13.75
47.51
33.57
45.51

0.80
11.45
10.60
14.82
14.83
15.93
74.24
62.02
83.54

1.06
11.98
10.22
12.41
12.56
13.99
86.31
67.53
77.77

1.95
11.34
11.22
21.44
21.47
22.47
81.08
60.05
74.05

1.11
9.93
9.96
13.19
13.84
14.65
82.80
70.25
84.82

0.70
14.68
13.79
31.02
31.06
32.19
33.12
27.00
80.58

1.31
11.71
11.34
19.57
19.60
20.73
63.78
53.76
84.29

1.33
11.23
9.04
12.11
12.19
13.86
61.54
48.15
71.19

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

0
86
4

0
0
0

0
0
0

0
9
0

0
64
3

0
1
0

0
0
0

0
1
0

0
9
1

0
2
0

PRIOR FIRST QUARTERS
(The way it was...)
Number of institutions������������������������������2014
��������������������������������������2012
��������������������������������������2010

6,730
7,308
7,934

16
18
21

4
5
4

1,480
1,492
1,553

3,324
3,679
4,358

563
717
745

54
52
75

444
427
303

783
851
813

62
67
62

Total assets (in billions)����������������������������2014
��������������������������������������2012
��������������������������������������2010

$14,910.1
13,925.4
13,336.0

$592.3
559.2
725.0

$3,723.9
3,660.4
3,157.3

$244.9
212.6
181.1

$4,977.4
4,068.3
4,497.8

$575.5
825.1
776.9

$164.1
98.5
95.0

$70.2
67.6
40.7

$141.2
152.6
126.6

$4,420.5
4,281.2
3,735.7

Return on assets (%)��������������������������������2014
��������������������������������������2012
��������������������������������������2010

1.01
1.00
0.53

3.48
3.33
0.70

0.77
0.80
0.75

1.11
1.27
0.95

0.95
0.84
0.16

0.84
0.82
0.78

1.02
1.78
1.41

1.85
1.71
1.20

0.82
0.99
0.86

0.94
1.01
0.64

Net charge-offs to loans & leases (%)�����2014
��������������������������������������2012
��������������������������������������2010

0.52
1.16
2.88

3.03
4.04
14.26

0.72
1.48
2.75

0.07
0.17
0.45

0.27
0.77
1.89

0.24
0.96
1.20

0.72
1.55
2.69

0.11
0.26
0.54

0.17
0.33
0.44

0.34
0.99
2.29

Noncurrent assets plus
OREO to assets (%)������������������������������2014
��������������������������������������2012
��������������������������������������2010

1.51
2.53
3.45

0.87
1.29
2.77

0.98
1.55
2.64

0.96
1.40
1.66

1.57
2.89
4.02

1.78
2.38
3.14

1.15
1.17
1.29

0.87
1.16
0.70

1.57
1.72
1.54

1.99
3.36
3.87

Equity capital ratio (%)�����������������������������2014
��������������������������������������2012
��������������������������������������2010

11.22
11.26
10.79

14.75
15.16
13.47

9.34
9.13
8.77

11.06
11.28
11.23

11.92
11.66
10.76

11.69
10.65
9.76

9.64
9.56
10.52

13.54
13.79
16.99

11.56
11.23
11.20

11.49
12.32
12.15

* See Table V-A (page 10) for explanations.
Note: Blue font identifies data that are also presented in the prior quarters’ data at the bottom of the table.

FDIC Quarterly

6

2015, Volume 9, No. 2

Quarterly Banking Profile
TABLE III-A. First Quarter 2015, All FDIC-Insured Institutions
Asset Size Distribution
FIRST QUARTER
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������������
6,419
Commercial banks�������������������������������������������
5,570
Savings institutions�����������������������������������������
849
Total assets (in billions)������������������������������������������
$15,778.1
Commercial banks�������������������������������������������
14,736.6
Savings institutions�����������������������������������������
1,041.4
Total deposits (in billions)���������������������������������������
11,958.3
Commercial banks�������������������������������������������
11,155.5
Savings institutions�����������������������������������������
802.8
Bank net income (in millions)���������������������������������
39,841
Commercial banks�������������������������������������������
36,961
Savings institutions�����������������������������������������
2,880
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
1,830
3,895
582
112
796
1,607
3,389
480
94
445
223
506
102
18
351
$107.6
$1,219.7
$1,573.0 $12,877.8
$3,020.2
94.7
1,038.2
1,319.4
12,284.3
2,597.4
12.9
181.4
253.6
593.5
422.8
90.9
1,017.7
1,244.7
9,605.0
2,242.3
80.8
873.9
1,052.2
9,148.6
1,934.4
10.0
143.9
192.5
456.4
308.0
231
3,045
4,115
32,450
6,186
202
2,643
3,523
30,593
5,472
29
402
591
1,858
714

Atlanta
797
722
75
$3,273.1
3,185.5
87.5
2,532.5
2,466.1
66.3
7,916
7,777
139

Chicago
1,386
1,156
230
$3,633.2
3,524.4
108.8
2,632.4
2,551.3
81.1
8,449
8,142
306

Kansas
City
1,585
1,518
67
$3,424.8
3,366.2
58.7
2,604.7
2,559.7
45.0
9,877
9,742
135

San
Dallas
Francisco
1,351
504
1,267
462
84
42
$923.7
$1,503.1
815.5
1,247.6
108.1
255.4
769.8
1,176.6
679.9
964.1
89.9
212.5
2,404
5,010
2,064
3,765
340
1,245

3.36
0.33
3.02
1.60
2.65
0.21
1.00
1.47
1.02
9.12
0.43

4.02
0.44
3.58
1.16
3.38
0.08
0.84
1.01
0.86
6.96
0.14

4.08
0.46
3.62
1.12
3.13
0.10
0.97
1.29
1.01
8.96
0.11

4.12
0.39
3.72
1.20
2.97
0.18
1.04
1.51
1.06
8.95
0.20

3.18
0.31
2.87
1.70
2.55
0.23
1.00
1.49
1.02
9.18
0.51

3.39
0.41
2.98
1.38
2.59
0.27
0.81
1.21
0.83
7.04
0.46

3.52
0.28
3.24
1.53
2.75
0.25
0.95
1.44
0.98
7.83
0.52

2.59
0.26
2.33
1.88
2.56
0.10
0.93
1.30
0.94
9.50
0.27

3.58
0.35
3.22
1.46
2.48
0.22
1.12
1.67
1.16
11.32
0.54

3.89
0.31
3.58
1.35
3.10
0.16
1.04
1.38
1.06
9.53
0.16

3.93
0.43
3.50
1.99
2.83
0.31
1.34
2.11
1.35
10.78
0.46

92.88
60.62
5.59
62.70

100.69
75.92
11.09
54.70

135.26
69.70
3.70
65.16

131.22
63.56
1.89
71.99

89.33
59.19
0.89
59.82

108.71
63.18
6.16
60.43

83.32
61.67
9.41
61.86

82.18
64.33
6.13
63.56

80.96
55.96
3.60
64.98

157.43
66.60
3.70
60.55

111.47
53.52
8.53
63.89

89.38

91.96

92.69

91.90

88.74

89.08

88.51

88.68

89.10

91.58

92.87

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 �����������������������������������
Common equity tier 1 capital 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���������������������������

1.45
79.13

1.54
102.98

1.43
109.24

1.33
103.33

1.47
73.94

1.35
96.67

1.47
70.63

1.53
73.68

1.55
64.86

1.33
99.03

1.31
151.94

1.10
11.18
9.48
12.65
12.75
14.26
68.91
52.23
67.04

1.39
12.45
12.07
19.87
19.94
21.08
66.26
55.95
84.44

1.33
11.28
10.88
15.56
15.64
16.76
76.37
63.73
83.39

1.15
11.87
10.62
13.96
14.02
15.09
84.14
66.58
78.75

1.07
11.08
9.18
12.18
12.28
13.88
66.18
49.36
63.92

0.82
11.76
9.62
12.71
12.89
14.52
69.93
51.92
65.78

1.37
12.47
9.78
12.71
12.82
14.40
73.89
57.17
74.76

1.04
9.89
8.70
12.28
12.34
13.47
60.84
44.08
61.71

1.36
10.25
8.93
11.75
11.76
13.73
66.29
50.41
57.56

1.12
11.08
9.97
13.33
13.49
14.65
73.88
61.57
83.03

0.61
12.53
11.43
14.93
15.08
16.21
76.88
60.18
77.43

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

0
86
4

0
24
2

0
56
1

0
6
1

0
0
0

0
8
1

0
12
2

0
20
1

0
13
0

0
24
0

0
9
0

PRIOR FIRST QUARTERS
(The way it was…)
Number of institutions������������������������������������ 2014
��������������������������������������������2012
��������������������������������������������2010

6,730
7,308
7,934

2,005
2,368
2,779

4,054
4,276
4,475

564
557
575

107
107
105

831
906
977

852
945
1,103

1,457
1,544
1,637

1,641
1,767
1,868

1,414
1,533
1,654

535
613
695

Total assets (in billions)����������������������������������2014
��������������������������������������������2012
��������������������������������������������2010

$14,910.1
13,925.4
13,336.0

$118.1
137.4
155.4

$1,246.8
1,283.6
1,339.9

$1,493.8
1,419.8
1,477.9

$12,051.3
11,084.7
10,362.8

$2,963.4
2,823.3
2,671.7

$3,032.9
2,918.0
2,989.0

$3,416.9
3,207.9
2,978.4

$3,247.0
2,967.7
1,664.4

$883.0
831.1
786.3

$1,366.9
1,177.5
2,246.3

Return on assets (%)��������������������������������������2014
��������������������������������������������2012
��������������������������������������������2010

1.01
1.00
0.53

0.80
0.74
0.46

0.90
0.83
0.38

1.02
1.06
0.19

1.02
1.02
0.60

1.02
0.97
0.56

0.88
0.83
0.27

0.80
0.87
0.48

1.14
1.08
0.65

1.08
1.13
0.72

1.42
1.60
0.73

Net charge-offs to loans & leases (%)����������� 2014
��������������������������������������������2012
��������������������������������������������2010

0.52
1.16
2.88

0.19
0.38
0.65

0.18
0.58
0.88

0.25
0.78
1.77

0.62
1.32
3.46

0.75
1.32
4.10

0.47
1.28
2.73

0.38
0.90
2.35

0.61
1.44
3.27

0.21
0.57
1.23

0.50
0.89
2.59

Noncurrent assets plus
OREO to assets (%)������������������������������������ 2014
��������������������������������������������2012
��������������������������������������������2010

1.51
2.53
3.45

1.71
2.26
2.32

1.74
2.88
3.39

1.75
3.06
3.70

1.45
2.43
3.43

1.08
1.70
2.46

2.05
3.74
4.18

1.35
2.28
3.23

1.86
2.70
4.79

1.46
2.44
3.19

0.85
1.85
3.02

Equity capital ratio (%)�����������������������������������2014
��������������������������������������������2012
��������������������������������������������2010

11.22
11.26
10.79

11.85
11.74
11.96

10.90
10.67
10.04

11.90
11.74
10.86

11.16
11.27
10.86

12.04
12.57
11.92

12.32
12.01
11.29

9.78
8.80
8.55

10.43
11.14
11.51

10.95
10.90
10.39

12.61
13.60
11.37

* See Table V-A (page 11) for explanations.
Note: Blue font identifies data that are also presented in the prior quarters’ data at the bottom of the table.

FDIC Quarterly

7

2015, Volume 9, No. 2

TABLE IV-A. Full Year 2014, All FDIC-Insured Institutions
Asset Concentration Groups*
FULL YEAR
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������
6,509
Commercial banks�������������������������������������
5,643
Savings institutions�����������������������������������
866
Total assets (in billions)������������������������������������
$15,553.8
Commercial banks�������������������������������������
14,493.8
Savings institutions�����������������������������������
1,059.9
Total deposits (in billions)���������������������������������
11,763.9
Commercial banks�������������������������������������
10,953.3
Savings institutions�����������������������������������
810.5
Bank net income (in millions)���������������������������
152,273
Commercial banks�������������������������������������
140,318
Savings institutions�����������������������������������
11,955
Performance Ratios (%)
Yield on earning assets������������������������������������
Cost of funding earning assets������������������������
Net interest margin������������������������������������
Noninterest income to assets���������������������������
Noninterest expense to assets�������������������������
Loan and lease loss provision to assets����������
Net operating income to assets�����������������������
Pretax return on assets������������������������������������
Return on assets�����������������������������������������������
Return on equity�����������������������������������������������
Net charge-offs to loans and leases����������������
Loan and lease loss provision to
net charge-offs����������������������������������������������
Efficiency ratio��������������������������������������������������
% of unprofitable institutions����������������������������
% of institutions with earnings gains����������������

Credit
Card
International Agricultural Commercial
Banks
Banks
Banks
Lenders
15
3
1,515
3,222
12
3
1,496
2,913
3
0
19
309
$484.2
$3,735.6
$273.5
$4,878.5
389.4
3,735.6
268.6
4,487.0
94.7
0.0
4.8
391.5
259.7
2,633.3
226.8
3,795.3
192.4
2,633.3
223.6
3,508.9
67.3
0.0
3.2
286.4
14,694
26,520
3,098
44,181
10,627
26,520
2,997
41,076
4,067
0
101
3,105

Mortgage Consumer
Lenders
Lenders
553
52
166
41
387
11
$439.6
$175.9
156.6
89.9
282.9
86.0
328.0
148.1
122.4
76.0
205.5
72.1
4,309
1,787
2,518
968
1,791
818

Other
Specialized
All Other
<$1 Billion
<$1 Billion
374
708
335
618
39
90
$61.9
$129.1
56.9
107.8
5.0
21.2
49.9
108.2
46.4
91.1
3.5
17.1
1,334
1,103
718
1,003
615
100

All Other
>$1 Billion
67
59
8
$5,375.5
5,201.9
173.6
4,214.6
4,059.2
155.4
55,248
53,891
1,356

3.49
0.35
3.14
1.64
2.80
0.20
1.00
1.46
1.01
9.01
0.49

10.68
0.83
9.85
5.01
6.63
2.39
3.22
5.02
3.22
20.88
2.81

2.77
0.37
2.41
1.71
2.60
0.13
0.72
1.07
0.72
7.66
0.73

4.14
0.48
3.65
0.62
2.52
0.11
1.15
1.38
1.17
10.29
0.13

3.84
0.41
3.43
1.18
2.85
0.12
0.94
1.31
0.94
7.84
0.24

3.45
0.67
2.78
1.00
2.17
0.05
0.95
1.43
0.96
8.09
0.21

3.96
0.47
3.49
1.37
2.61
0.47
1.05
1.65
1.05
10.78
0.62

3.13
0.38
2.74
5.67
5.12
0.07
2.16
3.03
2.20
15.30
0.34

3.95
0.47
3.48
0.93
3.01
0.11
0.84
1.06
0.87
7.46
0.24

2.97
0.20
2.77
1.80
2.61
0.13
1.04
1.55
1.06
9.42
0.41

75.30
61.90
6.16
63.48

107.55
46.31
0.00
66.67

52.28
67.62
0.00
33.33

134.98
62.67
2.64
63.83

71.36
65.43
6.73
67.82

35.52
59.52
9.95
51.18

107.82
54.47
3.85
57.69

69.44
62.41
9.09
54.28

82.37
72.52
7.20
58.76

66.17
59.79
2.99
55.22

89.26

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��������������������

92.17

86.96

92.40

90.19

94.12

96.70

91.04

92.40

88.84

1.48
75.38

3.13
284.22

1.85
80.12

1.39
146.31

1.28
96.90

1.14
38.24

1.15
73.83

1.85
112.67

1.43
81.60

1.36
50.04

1.20
11.15
9.45
12.95
14.41
69.59
52.64
66.66

0.88
15.14
12.34
12.33
14.71
144.30
77.41
51.66

0.85
9.45
8.28
12.56
13.42
47.81
33.70
45.71

0.83
11.42
10.49
14.52
15.62
76.51
63.46
82.94

1.17
11.97
10.20
12.83
14.29
86.99
67.68
77.27

2.19
12.07
11.53
21.43
22.46
82.50
61.56
74.59

1.19
9.88
9.82
13.83
14.65
83.73
70.49
84.18

0.73
14.77
13.97
31.52
32.55
33.76
27.22
79.78

1.38
11.82
11.48
20.01
21.19
63.98
53.62
83.80

1.43
11.12
8.97
12.48
14.28
61.63
48.32
70.33

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

0
273
18

0
0
0

0
0
0

0
45
1

0
192
13

0
9
2

0
0
0

0
3
0

0
12
2

0
12
0

PRIOR FULL YEARS
(The way it was...)
Number of institutions������������������������������2013
��������������������������������������2011
������������������������������������� 2009

6,812
7,357
8,012

16
18
23

4
4
4

1,532
1,545
1,568

3,378
3,769
4,453

588
732
766

55
59
83

405
377
289

772
790
770

62
63
56

Total assets (in billions)����������������������������2013
��������������������������������������2011
������������������������������������� 2009

$14,730.9
13,891.3
13,086.8

$590.9
538.7
501.6

$3,700.2
3,456.4
3,107.1

$261.6
215.7
182.0

$4,921.3
4,086.1
4,546.7

$486.9
825.4
810.1

$162.5
97.2
96.5

$62.8
56.1
38.1

$137.6
138.6
116.1

$4,407.1
4,477.2
3,688.7

Return on assets (%)��������������������������������2013
��������������������������������������2011
������������������������������������� 2009

1.07
0.88
-0.08

3.35
3.49
-4.51

0.86
0.74
0.08

1.15
1.11
0.81

0.91
0.63
-0.43

0.98
0.56
0.65

1.15
1.68
0.33

1.93
1.92
0.74

0.85
0.92
0.80

1.11
0.89
0.53

Net charge-offs to loans & leases (%)�����2013
��������������������������������������2011
������������������������������������� 2009

0.69
1.55
2.52

3.20
5.26
9.77

0.97
1.97
3.07

0.14
0.40
0.65

0.43
1.18
2.02

0.37
0.90
1.24

0.80
1.87
2.74

0.48
0.56
0.78

0.33
0.54
0.54

0.49
1.25
2.19

Noncurrent assets plus
OREO to assets (%)������������������������������2013
��������������������������������������2011
������������������������������������� 2009

1.63
2.61
3.37

0.93
1.41
2.40

1.07
1.61
2.75

0.95
1.46
1.55

1.65
3.05
3.87

2.14
2.61
3.17

1.23
1.28
1.45

0.84
1.11
0.69

1.44
1.69
1.34

2.18
3.25
3.66

Equity capital ratio (%)�����������������������������2013
��������������������������������������2011
������������������������������������� 2009

11.15
11.16
10.88

14.73
15.11
21.49

9.27
8.89
8.75

10.97
11.22
10.95

11.79
11.69
10.48

11.62
10.39
9.48

9.51
9.82
11.15

13.50
14.51
17.74

11.34
11.45
11.27

11.52
12.08
11.95

* See Table V-A (page 10) for explanations.
Note: Blue font identifies data that are also presented in the prior years’ data at the bottom of the table.

FDIC Quarterly

8

2015, Volume 9, No. 2

Quarterly Banking Profile
TABLE IV-A. Full Year 2014, All FDIC-Insured Institutions
Asset Size Distribution
FULL YEAR
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������������
6,509
Commercial banks�������������������������������������������
5,643
Savings institutions�����������������������������������������
866
Total assets (in billions)������������������������������������������ $15,553.8
Commercial banks�������������������������������������������
14,493.8
Savings institutions�����������������������������������������
1,059.9
Total deposits (in billions)���������������������������������������
11,763.9
Commercial banks�������������������������������������������
10,953.3
Savings institutions�����������������������������������������
810.5
Bank net income (in millions)���������������������������������
152,273
Commercial banks�������������������������������������������
140,318
Savings institutions�����������������������������������������
11,955
Performance Ratios (%)
Yield on earning assets������������������������������������������
Cost of funding earning assets������������������������������
Net interest margin������������������������������������������
Noninterest income to assets���������������������������������
Noninterest expense to assets�������������������������������
Loan and lease loss provision to assets����������������
Net operating income to assets�����������������������������
Pretax return on assets������������������������������������������
Return on assets�����������������������������������������������������
Return on equity�����������������������������������������������������
Net charge-offs to loans and leases����������������������
Loan and lease loss provision to
net charge-offs����������������������������������������������������
Efficiency ratio��������������������������������������������������������
% of unprofitable institutions����������������������������������
% of institutions with earnings gains����������������������

Geographic Regions*

Less Than
$100
$1 Billion
Greater
$100
Million to
to
Than
Million
$1 Billion $10 Billion $10 Billion New York
1,872
3,956
574
107
807
1,645
3,439
468
91
450
227
517
106
16
357
$109.8
$1,232.0
$1,576.5 $12,635.4
$2,956.5
96.8
1,045.3
1,297.7
12,054.1
2,498.9
13.1
186.7
278.8
581.4
457.6
92.5
1,024.3
1,227.9
9,419.3
2,180.6
82.3
876.7
1,020.8
8,973.5
1,849.3
10.2
147.5
207.1
445.8
331.2
858
12,007
16,522
122,886
23,702
751
10,345
14,239
114,983
20,725
106
1,662
2,284
7,903
2,977

Atlanta
812
735
77
$3,217.9
3,131.1
86.8
2,477.2
2,412.5
64.6
32,080
31,368
712

Chicago
1,406
1,176
230
$3,595.8
3,489.8
106.1
2,634.6
2,555.0
79.5
30,430
29,347
1,083

Kansas
City
1,599
1,530
69
$3,404.0
3,344.4
59.6
2,567.0
2,520.3
46.8
35,358
34,869
489

San
Dallas
Francisco
1,372
513
1,282
470
90
43
$904.4
$1,475.1
797.9
1,231.7
106.4
243.4
751.7
1,152.8
663.6
952.6
88.1
200.3
10,039
20,662
8,720
15,289
1,319
5,374

3.49
0.35
3.14
1.64
2.80
0.20
1.00
1.46
1.01
9.01
0.49

4.13
0.47
3.66
1.13
3.45
0.11
0.78
0.93
0.79
6.49
0.23

4.19
0.50
3.69
1.10
3.16
0.12
0.98
1.25
1.00
9.06
0.23

4.19
0.43
3.76
1.21
3.00
0.17
1.08
1.49
1.08
9.11
0.27

3.33
0.32
3.00
1.75
2.73
0.21
0.99
1.48
1.00
9.02
0.56

3.51
0.42
3.09
1.49
2.77
0.27
0.82
1.20
0.83
6.93
0.55

3.65
0.28
3.37
1.62
2.97
0.23
0.97
1.44
1.00
8.15
0.53

2.76
0.28
2.47
1.84
2.68
0.10
0.88
1.25
0.88
8.96
0.36

3.72
0.39
3.32
1.47
2.68
0.17
1.06
1.58
1.07
10.32
0.60

3.96
0.33
3.63
1.37
3.07
0.13
1.13
1.50
1.14
10.32
0.23

4.07
0.44
3.63
2.10
2.88
0.32
1.49
2.27
1.49
11.80
0.47

75.30
61.90
6.16
63.48

86.52
76.93
11.38
57.48

85.75
69.74
4.40
65.82

92.23
63.55
2.26
66.90

73.40
60.77
0.93
63.55

94.24
63.23
7.93
58.98

72.62
63.75
9.73
64.90

64.57
65.96
7.61
59.74

52.68
59.24
3.75
65.23

92.96
64.97
3.72
66.69

111.65
52.20
7.80
64.52

89.26

91.66

92.49

91.71

88.61

89.26

88.27

88.67

88.63

91.61

92.82

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���������������������������

1.48
75.38

1.54
101.97

1.44
106.55

1.37
84.82

1.50
71.46

1.36
92.40

1.52
65.90

1.57
71.64

1.58
62.16

1.34
96.92

1.31
144.69

1.20
11.15
9.45
12.95
14.41
69.59
52.64
66.66

1.45
12.29
11.99
19.56
20.65
67.40
56.74
84.17

1.38
11.20
10.79
15.75
16.89
77.13
64.12
83.08

1.41
11.90
10.63
14.35
15.45
85.74
66.78
77.52

1.15
11.04
9.14
12.46
13.99
66.69
49.72
63.55

0.89
11.82
9.52
13.36
15.06
71.33
52.61
65.39

1.55
12.45
9.70
12.94
14.60
75.24
57.92
74.28

1.11
9.80
8.72
12.20
13.33
60.01
43.97
61.90

1.46
10.20
8.91
12.22
13.82
67.37
50.81
56.85

1.18
11.06
10.02
13.84
15.00
74.32
61.78
82.78

0.65
12.47
11.39
15.02
16.17
77.96
60.92
76.93

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

0
273
18

0
86
10

0
162
8

0
22
0

0
3
0

0
26
3

0
46
4

0
60
6

0
58
1

0
57
2

0
26
2

PRIOR FULL YEARS
(The way it was…)
Number of institutions������������������������������������2013
�������������������������������������������� 2011
������������������������������������������� 2009

6,812
7,357
8,012

2,056
2,415
2,848

4,090
4,284
4,492

559
551
565

107
107
107

840
915
986

869
957
1,121

1,470
1,552
1,647

1,659
1,773
1,879

1,431
1,542
1,660

543
618
719

Total assets (in billions)����������������������������������2013
�������������������������������������������� 2011
������������������������������������������� 2009

$14,730.9
13,891.3
13,086.8

$119.7
138.7
158.9

$1,246.1
1,279.9
1,354.4

$1,468.6
1,410.9
1,461.4

$11,896.5
11,061.8
10,112.1

$2,927.3
2,864.6
2,567.2

$2,998.8
2,942.8
3,427.3

$3,376.9
3,184.5
2,934.4

$3,222.9
2,918.2
1,145.6

$870.0
812.9
784.8

$1,335.1
1,168.4
2,227.5

Return on assets (%)��������������������������������������2013
�������������������������������������������� 2011
������������������������������������������� 2009

1.07
0.88
-0.08

0.70
0.52
-0.05

0.91
0.56
-0.10

1.16
0.79
-0.37

1.07
0.93
-0.03

0.88
1.01
-0.83

0.98
0.52
0.01

0.95
0.78
0.18

1.24
0.95
0.76

1.09
0.94
0.34

1.55
1.47
-0.25

Net charge-offs to loans & leases (%)�����������2013
�������������������������������������������� 2011
������������������������������������������� 2009

0.69
1.55
2.52

0.35
0.62
0.88

0.36
0.90
1.25

0.41
1.18
1.91

0.78
1.72
2.87

0.93
1.86
2.76

0.66
1.66
2.29

0.49
1.19
2.36

0.87
1.85
2.40

0.32
0.89
1.35

0.57
1.15
3.44

Noncurrent assets plus
OREO to assets (%)������������������������������������2013
�������������������������������������������� 2011
������������������������������������������� 2009

1.63
2.61
3.37

1.75
2.34
2.24

1.81
3.01
3.29

1.89
3.13
3.58

1.57
2.50
3.36

1.12
1.78
2.33

2.23
3.84
4.16

1.47
2.31
3.20

1.99
2.76
4.28

1.58
2.60
3.04

0.91
1.97
3.19

Equity capital ratio (%)�����������������������������������2013
�������������������������������������������� 2011
������������������������������������������� 2009

11.15
11.16
10.88

11.68
11.83
11.96

10.78
10.65
9.86

11.80
11.73
10.72

11.11
11.14
11.02

12.02
12.26
12.53

12.19
11.98
11.66

9.66
8.68
8.59

10.42
11.12
10.70

10.87
10.92
10.28

12.65
13.48
11.11

* See Table V-A (page 11) for explanations.
Note: Blue font identifies data that are also presented in the prior years’ data at the bottom of the table.

FDIC Quarterly

9

2015, Volume 9, No. 2

TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Concentration Groups*
March 31, 2015

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

0.92
0.49
0.36
0.18
0.65
1.56
0.24
1.15
1.06
1.24
0.26
0.73

0.11
0.00
0.00
0.00
0.00
0.12
0.87
1.08
1.08
1.02
0.00
1.06

1.25
0.91
0.28
0.09
0.91
1.98
0.24
1.23
1.10
1.44
0.32
0.81

0.83
0.75
0.59
0.23
0.43
1.26
1.03
1.37
0.95
1.40
0.98
0.91

0.58
0.46
0.35
0.18
0.52
1.02
0.24
1.00
1.00
1.00
0.18
0.50

0.94
0.66
0.52
0.18
0.74
1.03
0.48
0.95
1.24
0.91
0.11
0.88

0.63
0.28
1.72
0.11
0.40
0.58
0.17
0.66
0.58
0.68
0.22
0.61

1.67
2.39
1.23
0.84
0.63
2.08
1.09
1.67
1.29
1.70
0.87
1.55

1.37
1.45
0.97
1.40
0.68
1.66
1.11
1.81
1.04
1.83
0.46
1.32

1.36
0.36
0.31
0.24
0.69
2.13
0.15
1.32
1.05
1.48
0.20
0.91

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

3.09
1.81
1.20
0.41
2.72
5.15
0.54
0.83
1.12
0.55
0.22
1.83

0.49
0.00
0.00
0.00
0.00
0.50
0.71
1.13
1.16
0.55
0.00
1.09

4.89
0.99
0.81
0.27
4.40
7.77
0.48
1.07
1.10
1.02
0.15
2.14

1.13
1.54
1.53
0.90
0.89
1.12
1.24
0.55
0.27
0.57
0.44
0.96

1.57
1.81
1.12
0.44
1.44
2.45
0.65
0.68
1.07
0.65
0.27
1.20

3.10
2.03
1.53
0.65
2.05
3.44
1.05
0.56
1.02
0.51
0.11
2.80

3.77
18.85
8.05
3.38
2.90
3.17
0.51
0.58
1.20
0.42
5.11
1.46

1.97
3.11
2.21
1.01
0.64
1.78
1.43
0.54
0.67
0.53
0.35
1.64

1.82
2.88
2.05
1.21
0.63
1.77
1.60
1.06
0.64
1.07
0.39
1.64

5.19
1.69
1.31
0.32
3.45
7.82
0.37
0.62
1.07
0.35
0.18
2.56

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

0.16
-0.13
0.06
0.00
0.46
0.21
0.18
1.83
2.98
0.68
0.07
0.43

0.25
0.00
0.00
0.00
0.00
0.26
2.19
2.87
2.94
1.38
0.00
2.80

0.39
0.00
0.00
0.00
0.50
0.50
0.16
2.34
3.14
0.98
0.04
0.63

-0.02
-0.62
-0.05
0.10
0.03
0.07
0.13
0.33
1.27
0.26
0.00
0.02

0.09
-0.09
0.07
0.00
0.31
0.12
0.15
0.70
3.35
0.48
0.14
0.15

0.14
0.00
0.03
0.01
0.32
0.15
0.00
0.93
4.39
0.52
0.08
0.15

0.23
-0.13
0.06
-0.06
0.55
0.16
0.07
0.79
2.21
0.39
0.02
0.60

0.02
-0.27
0.02
-0.02
0.04
0.07
0.13
0.49
1.36
0.41
0.60
0.13

0.08
-0.14
0.10
0.27
0.06
0.11
0.21
0.42
0.90
0.42
0.00
0.14

0.21
-0.24
0.03
-0.03
0.60
0.22
0.12
1.62
2.96
0.80
0.04
0.41

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)��������������

$4,204.3
246.1
1,163.4
305.3
483.9
1,855.3
1,749.1
1,383.9
680.0
704.0
1,026.7
8,364.0

$0.3
0.0
0.0
0.0
0.0
0.3
32.4
339.8
323.8
16.0
2.2
374.6

$486.8
7.6
37.2
55.8
77.3
252.4
279.3
241.7
149.6
92.1
310.3
1,318.1

$97.2
5.2
25.6
2.9
1.8
25.3
19.4
6.0
0.4
5.6
37.9
160.5

$2,078.2
171.9
811.8
198.7
194.6
666.3
806.1
240.1
17.8
222.3
245.9
3,370.3

$249.0
5.0
20.7
6.1
14.0
202.2
7.8
5.8
0.6
5.2
17.9
280.4

$30.1
0.5
2.4
0.2
6.5
20.4
7.1
88.1
19.0
69.1
3.8
129.2

$12.2
0.9
4.2
0.3
0.4
5.7
2.3
2.0
0.1
1.8
1.0
17.5

$55.0
3.3
13.5
1.5
2.2
30.2
6.4
5.9
0.1
5.8
5.0
72.2

$1,195.5
51.8
248.0
39.7
187.1
652.5
588.4
454.6
168.4
286.2
402.6
2,641.2

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

19,338.7
6,045.2
4,981.0
427.0
5,718.0
252.6
1,884.6

0.1
0.0
0.0
0.0
0.1
0.0
0.0

1,093.7
16.6
62.4
2.0
515.7
0.0
469.0

488.3
176.9
170.3
17.4
85.5
38.1
0.1

11,512.6
4,588.2
3,551.1
336.5
2,688.4
181.3
166.8

1,085.5
157.4
86.4
8.5
391.9
1.6
439.6

129.5
24.4
36.5
1.1
59.5
0.0
8.0

155.2
59.5
49.3
6.1
38.7
1.6
0.0

537.9
169.9
175.1
11.2
168.9
12.7
0.1

4,335.9
852.4
849.9
44.0
1,769.2
17.3
801.1

* 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

2015, Volume 9, No. 2

Quarterly Banking Profile
TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Size Distribution
March 31, 2015

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

0.92
0.49
0.36
0.18
0.65
1.56
0.24
1.15
1.06
1.24
0.26
0.73

1.38
1.25
1.19
0.53
0.83
1.75
1.18
1.76
3.16
1.74
0.85
1.31

0.79
0.65
0.57
0.45
0.53
1.16
0.74
1.42
1.35
1.42
0.71
0.81

0.53
0.51
0.33
0.15
0.46
0.88
0.41
1.27
1.64
1.09
0.35
0.55

1.05
0.39
0.27
0.15
0.68
1.74
0.18
1.13
1.04
1.24
0.22
0.75

0.63
0.72
0.42
0.16
0.49
0.97
0.25
1.00
0.85
1.26
0.14
0.58

1.10
0.49
0.31
0.25
0.80
1.78
0.18
1.49
1.18
1.81
0.18
0.86

0.96
0.43
0.42
0.17
0.73
1.56
0.29
1.05
0.88
1.10
0.42
0.75

1.28
0.25
0.34
0.20
0.64
2.16
0.18
1.17
1.15
1.19
0.25
0.87

0.86
0.58
0.39
0.26
0.46
1.68
0.39
0.82
0.56
0.94
0.31
0.72

0.41
0.30
0.24
0.16
0.36
0.65
0.25
0.94
1.30
0.64
0.24
0.47

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

3.09
1.81
1.20
0.41
2.72
5.15
0.54
0.83
1.12
0.55
0.22
1.83

1.65
2.32
2.10
1.23
0.85
1.68
1.86
0.80
1.17
0.80
0.65
1.50

1.41
2.50
1.39
0.88
0.76
1.42
1.27
0.85
1.39
0.81
0.42
1.31

1.45
1.94
1.20
0.46
0.87
2.06
0.88
0.77
1.59
0.39
1.04
1.29

3.91
1.46
1.11
0.31
3.07
6.35
0.45
0.84
1.10
0.55
0.15
1.99

2.01
2.15
1.42
0.31
2.07
2.95
0.62
0.90
0.97
0.76
0.37
1.39

3.83
2.54
1.13
0.37
3.32
5.94
0.48
0.85
1.16
0.53
0.12
2.09

3.62
1.75
1.32
0.52
2.83
6.01
0.53
0.81
1.03
0.74
0.15
2.08

4.47
1.39
1.22
0.44
3.14
7.54
0.50
0.85
1.16
0.47
0.23
2.38

1.76
1.19
0.95
0.92
1.66
3.12
0.78
0.71
1.19
0.48
0.31
1.34

1.17
1.59
1.00
0.27
0.95
1.47
0.53
0.73
1.31
0.24
0.26
0.86

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

0.16
-0.13
0.06
0.00
0.46
0.21
0.18
1.83
2.98
0.68
0.07
0.43

0.08
-0.20
0.15
0.15
0.06
0.10
0.40
0.56
6.91
0.48
0.00
0.14

0.06
-0.01
0.05
0.05
0.11
0.10
0.19
0.66
4.08
0.40
0.14
0.11

0.07
-0.11
0.10
0.02
0.17
0.08
0.15
1.61
3.68
0.62
0.08
0.20

0.21
-0.19
0.04
-0.02
0.51
0.25
0.18
1.88
2.95
0.70
0.06
0.51

0.09
-0.13
0.07
0.00
0.31
0.10
0.14
2.02
2.73
0.76
0.08
0.46

0.25
0.13
0.08
0.04
0.60
0.27
0.15
1.92
3.03
0.73
0.07
0.52

0.15
-0.23
0.04
0.02
0.41
0.19
0.20
1.09
2.86
0.51
0.07
0.27

0.25
-0.34
0.00
-0.08
0.58
0.35
0.14
2.33
3.28
1.09
0.02
0.54

0.03
-0.11
0.02
-0.11
0.29
0.07
0.10
1.15
2.10
0.68
0.13
0.16

0.06
-0.24
0.12
-0.01
0.13
0.06
0.32
1.60
3.11
0.30
0.17
0.46

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)�����

$4,204.3
246.1
1,163.4
305.3
483.9
1,855.3
1,749.1
1,383.9
680.0
704.0
1,026.7
8,364.0

$42.5
2.5
11.1
1.3
1.1
19.5
7.3
3.8
0.0
3.7
7.6
61.2

$606.0
52.3
234.9
31.6
26.7
217.3
103.1
33.0
2.3
30.7
46.8
788.9

$757.3
63.2
308.6
71.2
46.8
248.8
172.3
77.7
24.6
53.1
54.7
1,062.0

$2,798.5
128.2
608.8
201.2
409.3
1,369.8
1,466.5
1,269.4
653.1
616.4
917.5
6,452.0

$858.7
45.5
269.3
108.4
90.3
340.9
268.0
292.9
185.6
107.4
170.5
1,590.1

$895.3
52.4
235.0
38.1
126.1
433.2
430.0
351.4
179.3
172.2
222.8
1,899.5

$824.6
39.2
186.3
81.1
120.7
376.6
359.3
202.3
48.3
154.1
240.6
1,626.7

$826.2
37.1
167.1
25.8
98.3
407.7
358.8
286.8
160.1
126.7
282.4
1,754.2

$354.8
48.6
139.4
13.0
19.5
120.1
123.1
56.2
18.2
38.0
42.5
576.6

$444.7
23.2
166.2
39.0
28.9
176.9
210.1
194.2
88.5
105.7
68.0
917.0

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

19,338.7
6,045.2
4,981.0
427.0
5,718.0
252.6
1,884.6

573.0
194.6
178.1
21.8
166.6
11.7
0.3

5,790.2
2,631.2
1,867.2
150.7
1,014.7
124.4
2.0

4,198.6
1,692.6
1,345.6
99.9
951.3
88.3
21.0

8,776.9
1,526.9
1,590.1
154.6
3,585.4
28.2
1,861.4

2,625.3
636.2
670.4
164.1
1,100.5
21.5
32.6

5,007.8
1,722.9
1,202.1
40.0
1,488.4
58.6
495.9

3,815.4
839.0
1,019.5
71.3
1,290.6
49.9
545.1

4,046.4
1,287.5
881.5
72.2
962.0
36.2
777.1

2,535.7
1,100.1
818.3
49.4
487.9
66.2
13.9

1,308.1
459.6
389.2
29.9
388.6
20.3
20.2

* 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

2015, Volume 9, No. 2

Table VI-A. Derivatives, All FDIC-Insured Call Report Filers
Asset Size Distribution
1st
Quarter
2015

4th
Quarter
2014

3rd
Quarter
2014

2nd
Quarter
2014

1st
Quarter
2014

(dollar figures in millions;
notional amounts unless otherwise indicated)
ALL DERIVATIVE HOLDERS
Number of institutions reporting derivatives�����������������
1,430
1,400
1,392
1,405
1,399
Total assets of institutions reporting derivatives���������� $14,160,514 $13,921,852 $13,713,850 $13,522,371 $13,250,315
Total deposits of institutions reporting derivatives������� 10,664,252 10,461,458 10,291,809
10,169,199
9,980,762
Total derivatives������������������������������������������������������������� 205,900,437 221,924,279 242,942,949 239,127,057 231,756,607

% Change
Less
$100
$1 Billion
14Q1Than $100 Million to
to $10
15Q1
Million
$1 Billion
Billion

Greater
Than
$10 Billion

2.2
6.9
6.8
-11.2

69
$5,004
4,190
291

Derivative Contracts by Underlying Risk Exposure
Interest rate�������������������������������������������������������������������� 157,727,650 173,941,388 190,897,013 191,555,638 184,420,491
Foreign exchange*�������������������������������������������������������� 35,563,105 34,745,833 37,993,284 33,394,779 32,803,408
Equity�����������������������������������������������������������������������������
2,359,532
2,577,118
2,317,271
2,135,462
2,105,011
Commodity & other (excluding credit derivatives)��������
1,233,520
1,210,879
1,327,011
1,214,397
1,263,060
Credit������������������������������������������������������������������������������
9,016,631
9,449,062 10,408,370 10,826,781
11,164,636
Total�������������������������������������������������������������������������������� 205,900,437 221,924,279 242,942,949 239,127,057 231,756,607

-14.5
8.4
12.1
-2.3
-19.2
-11.2

291
0
0
0
0
291

23,356
2,875
57
9
127
26,423

90,548
5,139
309
96
482
96,573

Derivative Contracts by Transaction Type
Swaps���������������������������������������������������������������������������� 117,710,832 135,169,546 148,331,152 146,514,058 141,284,830
Futures & forwards�������������������������������������������������������� 44,537,354 43,368,429 45,058,920 45,263,688 42,478,734
Purchased options��������������������������������������������������������� 16,070,746
16,370,106
17,990,979 17,268,335
17,177,576
Written options��������������������������������������������������������������� 15,784,509 16,004,454 17,560,552 16,842,990 16,905,444
Total�������������������������������������������������������������������������������� 194,103,441 210,912,535 228,941,604 225,889,071 217,846,584

-16.7
4.8
-6.4
-6.6
-10.9

44
127
18
102
291

7,223
10,731
807
7,525
26,287

53,061 117,650,503
21,596
44,504,901
4,871
16,065,050
16,430
15,760,452
95,957 193,980,906

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�����������������������������������
Derivative Contracts by Maturity**
Interest rate contracts����������������������������� < 1 year
		
������������������������������������������ 1-5 years
		
������������������������������������������ > 5 years
Foreign exchange and gold contracts���� < 1 year
		
������������������������������������������ 1-5 years
		
������������������������������������������ > 5 years
Equity contracts��������������������������������������� < 1 year
		
������������������������������������������ 1-5 years
		
������������������������������������������ > 5 years
	Commodity & other contracts (including credit
derivatives, excluding gold contracts)���� < 1 year
		
������������������������������������������ 1-5 years
		
������������������������������������������ > 5 years
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 (%)�����������������������������������������������������

856
402
103
$357,197 $1,190,250 $12,608,062
295,028
953,698
9,411,336
26,423
96,573 205,777,150
157,613,456
35,555,091
2,359,165
1,233,415
9,016,023
205,777,150

68,527
-10,042
335
-5,755
54,676
-53,208

60,023
-4,845
3,769
-3,376
47,533
-36,633

65,131
13,334
-657
219
67,082
-62,731

72,248
4,729
412
965
95,094
-90,465

72,732
5,563
1,548
-893
80,869
-77,438

-5.8
N/M
-78.4
N/M
-32.4
N/M

1
0
0
0
0
0

61
0
1
0
-1
0

-201
-3
0
2
0
-24

68,666
-10,039
334
-5,758
54,677
-53,183

74,822,165
50,596,553
32,885,173
25,506,809
3,917,108
1,612,457
1,471,235
518,475
167,735

71,808,688
33,727,025
22,213,586
22,145,398
2,586,643
969,047
996,137
351,854
100,903

79,984,774
40,334,338
22,393,371
22,877,893
2,459,545
1,021,332
763,470
323,010
77,484

81,212,211
38,531,826
24,203,418
20,823,569
2,435,601
1,016,489
698,674
292,130
81,116

77,787,406
37,365,369
24,025,868
20,107,028
2,312,567
974,355
673,720
305,141
89,804

-3.8
35.4
36.9
26.9
69.4
65.5
118.4
69.9
86.8

87
28
35
0
0
0
0
0
0

9,764
3,260
4,257
1,996
0
0
9
10
1

21,113
24,846
26,113
3,644
194
0
46
91
25

74,791,201
50,568,419
32,854,768
25,501,169
3,916,915
1,612,457
1,471,180
518,374
167,709

5,553,836
5,891,761
600,199

1,298,825
3,623,142
289,055

1,407,104
4,045,843
321,390

1,454,791
4,091,545
332,178

1,303,887
4,310,725
422,604

325.9
36.7
42.0

0
0
0

7
5
0

50
6
15

5,553,779
5,891,750
600,184

39.8
49.8

28.8
48.6

26.0
53.2

23.5
55.1

23.5
56.2

0.2
1.7

0.4
1.2

0.8
1.4

45.2
56.6

89.6

77.4

79.2

78.7

79.7

1.8

1.6

2.2

101.8

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

69.8

91.1

83.2

68.7

12.8

445.3

0.0

0.3

0.0

69.5

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

249
11,441,159
8,585,063

248
11,274,526
8,457,138

244
11,015,085
8,262,859

247
10,889,256
8,185,855

243
10,638,252
7,997,380

2.5
7.5
7.3

8
575
464

86
40,444
33,768

91
320,862
254,422

64
11,079,279
8,296,409

Derivative Contracts by Underlying Risk Exposure
Interest rate�������������������������������������������������������������������� 154,706,789 170,693,032 187,912,026 188,495,603 181,284,535
Foreign exchange���������������������������������������������������������� 32,197,482 32,536,107 33,675,874 30,164,255 29,208,486
Equity�����������������������������������������������������������������������������
2,340,858
2,559,758
2,300,741
2,119,239
2,089,047
Commodity & other��������������������������������������������������������
1,227,079
1,205,276
1,320,794
1,206,811
1,256,235
Total�������������������������������������������������������������������������������� 190,472,207 206,994,173 225,209,435 221,985,908 213,838,301

-14.7
10.2
12.1
-2.3
-10.9

135
0
0
0
135

2,100
0
0
1
2,101

20,355
3,835
0
14
24,204

154,684,199
32,193,647
2,340,858
1,227,064
190,445,767

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

959
4,702
791
1,211
7,663

658
2,902
643
255
4,458

-826
4,830
652
946
5,602

2,878
2,026
722
795
6,421

2,010
2,137
608
1,427
6,183

-52.3
120.0
30.1
-15.1
23.9

0
0
0
0
0

0
0
0
0
0

18
3
0
0
21

941
4,700
791
1,210
7,642

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

6.4
29.4

3.8
19.6

4.7
23.6

5.4
24.6

5.4
26.9

0.0
0.0

0.0
0.2

0.6
3.4

6.6
30.1

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

1,305
13,844,132
10,410,936

1,276
13,613,609
10,218,446

1,272
13,421,606
10,062,067

1,287
13,229,480
9,938,934

1,282
12,944,593
9,738,920

1.8
6.9
6.9

62
4,511
3,797

783
326,299
269,165

363
1,072,212
860,209

97
12,441,111
9,277,764

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

3,020,861
585,258
18,674
6,441
3,631,233

3,248,355
647,043
17,361
5,602
3,918,361

2,984,988
724,435
16,530
6,216
3,732,169

3,060,035
819,319
16,223
7,586
3,903,163

3,135,956
849,536
15,965
6,825
4,008,282

-3.7
-31.1
17.0
-5.6
-9.4

156
0
0
0
156

21,256
2,865
57
8
24,186

70,192
1,170
309
81
71,753

2,929,257
581,223
18,308
6,351
3,535,139

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

2015, Volume 9, No. 2

Quarterly Banking Profile
TABLE VII-A. Servicing, Securitization, and Asset Sales Activities (All FDIC-Insured Call Report Filers)
Asset Size Distribution

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

1st
Quarter
2015

4th
Quarter
2014

3rd
Quarter
2014

2nd
Quarter
2014

1st
% Change Less Than
$100
$1 Billion Greater
Quarter
14Q1$100
Million to
to $10
Than $10
2014
15Q1
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������������������������������������������������������������������������������������������

75

78

74

73

76

-1.3

0

23

17

35

$821,872
35
17,817
3,740
5,966
19
94,401
943,850

$847,508
36
18,499
3,951
6,191
11
96,257
972,452

$845,279
38
16,782
4,198
6,425
10
95,099
967,831

$844,190
39
16,692
4,312
4,945
17
94,757
964,951

$598,465
41
16,349
4,735
4,462
545
96,071
720,668

37.3
-14.6
9.0
-21.0
33.7
-96.5
-1.7
31.0

$0
0
0
0
0
0
0
0

$2,489
0
0
0
2
14
118
2,622

$12,477
0
1
1,496
0
3
8,309
22,286

$806,907
35
17,816
2,243
5,964
2
85,974
918,942

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���

3,120
0
1,531
0
211
0
1,405
6,267
0

2,918
0
1,529
0
194
0
1,369
6,011
17

2,806
0
1,418
0
188
0
1,129
5,541
17

2,908
0
1,450
0
192
0
1,416
5,966
17

2,912
0
1,455
5
174
15
1,308
5,869
120

7.1
0.0
5.2
-100.0
21.3
-100.0
7.4
6.8
-100.0

0
0
0
0
0
0
0
0
0

11
0
0
0
0
0
0
11
0

3
0
0
0
0
0
0
3
0

3,106
0
1,531
0
211
0
1,405
6,253
0

3.1
5.2
0.4
1.0
4.6
0.0
0.4
2.8

3.9
7.5
0.7
0.9
4.9
0.0
0.3
3.5

3.9
8.0
0.8
0.7
4.8
0.0
0.4
3.5

3.5
9.1
0.8
0.7
5.5
0.0
0.4
3.2

3.3
8.8
0.9
0.6
5.2
0.0
0.3
2.9

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.7
0.0
0.0
0.0
0.0
0.0
3.1
0.8

1.6
0.0
0.0
0.8
0.0
0.0
0.1
1.0

3.1
5.2
0.4
1.0
4.6
0.0
0.4
2.8

2.0
44.7
0.3
0.1
5.1
1.3
1.4
2.0

2.2
43.3
0.5
0.1
5.3
2.4
3.3
2.3

2.2
42.0
0.5
0.1
5.2
3.0
6.5
2.6

2.3
40.3
0.6
0.1
6.3
2.9
9.2
2.9

3.3
37.8
0.7
0.1
6.7
0.1
8.7
3.9

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

1.3
0.0
0.0
0.0
0.0
1.8
9.8
1.7

1.0
0.0
0.0
0.2
0.0
0.0
0.8
0.9

2.1
44.7
0.3
0.1
5.1
0.0
1.4
2.0

0.1
0.7
0.4
0.1
0.2
0.0
0.1
0.1

0.4
1.0
1.7
0.2
0.8
0.0
0.9
0.4

0.3
0.2
1.5
0.1
0.6
0.0
0.6
0.3

0.2
0.1
1.2
0.1
0.3
0.0
0.9
0.3

0.2
-0.1
0.6
0.0
0.2
0.0
0.7
0.2

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
0.0
0.0
0.2
0.0
0.0
0.0
0.0

0.1
0.7
0.4
0.1
0.2
0.0
0.1
0.1

0
9,983
0

0
12,247
0

0
12,198
0

0
12,905
2

0
13,116
2

0.0
-23.9
-100.0

0
0
0

0
0
0

0
0
0

0
9,983
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
48

0.0
0.0
-100.0

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

1,097

1,103

1,105

1,101

1,088

0.8

129

740

177

51

38,900
694
83
71,382
111,059

40,547
712
91
69,560
110,909

40,838
709
52
66,271
107,869

41,944
727
53
65,112
107,835

43,405
755
69
65,974
110,203

-10.4
-8.1
20.3
8.2
0.8

1,109
0
1
0
1,110

15,376
3
11
94
15,483

8,987
28
71
1,193
10,278

13,428
664
0
70,095
84,187

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

10,073
137
19
18,624
28,853

9,737
137
27
17,954
27,855

9,850
140
23
17,233
27,246

9,646
141
24
16,849
26,660

9,573
155
33
16,970
26,732

5.2
-11.6
-42.4
9.7
7.9

80
0
1
0
81

2,444
3
11
11
2,468

3,390
4
8
71
3,473

4,159
130
0
18,542
22,831

Support for Securitization Facilities Sponsored by Other Institutions
Number of institutions reporting securitization facilities sponsored by others�������
Total credit exposure�������������������������������������������������������������������������������������������������

116
44,982

125
44,248

132
41,590

134
42,400

138
42,081

-15.9
6.9

9
10

64
155

24
334

19
44,483

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

887

1,150

918

1,122

1,017

-12.8

0

0

0

887

4,412,785 4,461,369 4,556,212

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

-100.0

0

0

0

0

11,736

0 4,361,980
11,981

10,189

12,129

12,110

-3.1

5

1

5

11,726

28,878
1,599
298
5.5

28,924
1,197
340
5.5

27,948
2,886
385
5.3

28,274
2,773
318
5.4

30,515
2,142
285
5.5

-5.4
-25.4
4.6

0
7
0
0.7

0
180
6
2.0

579
91
16
2.4

28,300
1,321
276
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

2015, Volume 9, No. 2

Quarterly Banking Profile
COMMUNITY BANK PERFORMANCE
Community banks are identified based on criteria defined in the FDIC’s Community Banking Study. When comparing
community bank performance across quarters, prior-quarter dollar amounts are based on community banks designated
in the current quarter, adjusted for mergers. In contrast, prior-quarter performance ratios are based on community banks
designated during the prior quarter.

Earnings of $4.9 Billion Grew 16 Percent From First Quarter 2014
Net Interest Income and Noninterest Income Increased From the
Year-Ago Period
Loan Balances Increased From the Previous Quarter and the Year Before
Net Charge-Off Rate Declined to a Nine-Year Low
Community Banks Continued to Hold 44 Percent of Small Loans to Businesses

■
■
■
■
■

up 13 basis points from the year-ago quarter, but
26 basis points below noncommunity banks’ rate
(1.51 percent).

Close to 63 Percent of Community Banks Increased
Earnings From First Quarter 2014
Improved revenue from net interest income and
noninterest income, coupled with lower loan-loss
provisions, increased aggregate first quarter 2015 earnings at the 5,946 community banks to $4.9 billion, up
$690.9 million (16.4 percent) from the year before.
Earnings for community banks grew at almost three
times the rate of noncommunity banks (6.1 percent).1
Almost two out of every three community banks
(63 percent) reported higher year-over-year earnings, while 5.8 percent were unprofitable during the
quarter, the lowest level since second quarter 2005.
The pretax return on assets (ROA) was 1.25 percent,

Net Interest Margin Continued to Fall Despite
Net Interest Income Rising 6.5 Percent

In first quarter 2015, there were 472 noncommunity banks with a
total of $13.7 trillion in assets, $10.2 trillion in deposits, and $1.5 trillion in equity capital.

The average net interest margin (NIM) of 3.55 percent
for the quarter was down 2 basis points from the year
before, as average asset yields fell more rapidly than
average funding costs. Community banks posted NIM
61 basis points above the average of noncommunity
banks (2.94 percent) and 53 basis points above the
industry average (3.02 percent). Net interest income,
which accounted for 78 percent of net operating
revenue at community banks, totaled $16.8 billion in
first quarter 2015, up $1 billion (6.5 percent) from first
quarter 2014. With nearly 70 percent of community

Chart 1

Chart 2

1

Net Interest Margin

Contributors to the Year-Over-Year Change in Income
FDIC-Insured Community Banks

Positive Factor
Negative Factor

Billions of Dollars
$1.5
$0.69

Percent
4.0

$1.02

-$0.02

$0.70

$0.82

$0.10

$0.33

$1.0

3.5

3.57

3.55

$0.5
$0.0
-$0.5

Community Banks
All Insured Institutions

3.0
+16%

+6%

Net
Income

Net
Interest
Income

-3%

+18%

+6%

Loan Loss Noninterest Noninterest
Provisions Income
Expense

+75%

+28%

Realized
Gains on
Securities

Income
Taxes

3.02

2.5
2007

Source: FDIC.

FDIC Quarterly

3.16

2008

2009

2010

2011

2012

2013

2014

2015

Source: FDIC.

15

2015, Volume 9, No. 2

banks increasing net interest income from the yearago quarter, the annual increase at community banks
outperformed noncommunity banks (1.6 percent).
Yearly increase in net interest income for community banks was led by higher interest income from
non 1-to-4 family residential mortgage real estate
loans (up $509.1 million, or 7.3 percent) and 1-to-4
family residential mortgages (up $238.5 million, or
5.3 percent).

securitization, and servicing of residential mortgage
loans totaled $743.6 million for the current quarter, up
$313.1 million (72.7 percent) from first quarter 2014.

Noninterest Expense Grew 5.9 Percent From
First Quarter 2014
Noninterest expense totaled $14.8 billion in first quarter 2015, an increase of $821.1 million (5.9 percent)
from the year before. Close to 77 percent of the
increase in noninterest expense was led by higher
salary employee benefits (up $627.4 million, or
8.2 percent). Almost two out of every three community banks (65 percent) reported higher noninterest
expense from first quarter 2014. Full-time employees
at community banks totaled 439,114 in first quarter
2015, up 8,789 (2 percent) from a year earlier, while
noncommunity banks reduced full-time employees by
3,794 (0.2 percent). The average asset per employee
was $4.7 million for the first quarter of 2015, up from
$4.5 million in the same 2014 quarter.

Higher Loan Sale Revenue Increased
Noninterest Income
Noninterest income of $4.7 billion, which accounted
for 22 percent of net operating revenue at community
banks in first quarter 2015, increased $704 million
(17.7 percent) from the same 2014 quarter. More
than half (57 percent) of community banks reported
higher noninterest income than a year earlier. Close
to 90 percent of the annual increase in noninterest income was the result of rising loan sales
revenue (up $404 million, or 68.4 percent) and all
other noninterest income (up $224.2 million, or
14.2 percent).2 Noninterest income from the sale,
All other noninterest income includes items that are greater than
$25,000 and exceed 3 percent of all other noninterest income
reported. They include income and fees from the printing and sale of
checks, earnings on the increase in value of cash surrender value of
life insurance, income and fees from automated teller machines, rent
and other income from other real estate owned, safe deposit box rent,
net change in the fair values of financial instru­ments accounted for
under a fair value option, bank card and credit card interchange fees,
and gains on bargain purchases.
2

Chart 3

Chart 4
Noncurrent Loan Rates for FDIC-Insured Community Banks

Change in Loan Balances and Unused Commitments
Billions of Dollars
25.8

FDIC-Insured Community Banks

Percent of Loan Portfolio Noncurrent
16
C&D Loans

25.1

14

Change 1Q 2015 vs. 1Q 2014
Change 1Q 2015 vs. 4Q 2014

17.3

12

6.5

8

7.6

5.7

5.7
2.1

10

11.7

11.0

3.8

3.1

1.8

0.1

1.3

6

2.6

4

-1.1
Nonfarm
Nonresidential
RE

C&I
Loans

Source: FDIC.

FDIC Quarterly

1-to-4
Family
Residential
RE

C&D
Loans

-3.5

Agricultural Loans to
Production Individuals
Loans

Loan Balances

Nonfarm Nonresidential RE
1-to-4 Family RE
C&I Loans
Home Equity
Credit Cards

2
Home
Equity

CRE & C&D

C&I
Loans

0
2007

Unused
Commitments

2008

2009

2010

2011

2012

2013

2014

2015

Source: FDIC.

16

2015, Volume 9, No. 2

Quarterly Banking Profile
All Major Loan Balances Increased From the
Year Before

Asset Quality Indicators Showed Continuing
Improvement

Total assets at community banks grew by $33 billion
(1.6 percent) from the previous quarter, as loan
balances increased by $17.4 billion (1.3 percent).
With more than half of community banks (53 percent)
increasing loan balances from the previous quarter, the
quarterly growth rate for community banks outpaced
noncommunity banks (0.5 percent). Almost 83 percent
of the increase was led by nonfarm nonresidential
real estate loans (up $6.5 billion, or 1.6 percent),
1-to-4 family residential mortgages (up $5.7 billion,
or 1.6 percent), and commercial and industrial loans
(up $2.1 billion, or 1.1 percent). Agricultural production loans posted a seasonal decline of $3.5 billion
(7.2 percent), and loans to individuals fell $1.1 billion
(1.8 percent). All major loan categories increased
from first quarter 2014, led by nonfarm nonresidential
real estate loans (up $25.8 billion, or 6.9 percent),
1-to-4 family residential mortgages (up $25.1 billion,
or 7.4 percent), commercial and industrial loans (up
$17.3 billion, or 10 percent), and construction and
development loans (up $11 billion, or 14.8 percent).
Small loans to businesses of $295.3 billion increased
$9.8 billion (3.4 percent) from first quarter 2014, with
42 percent of the growth being driven by commercial
and industrial loans (up $4.1 billion, or 4.7 percent).3
Total unused loan commitments increased $26.2 billion
(11.2 percent) from the year before, with total unused
commercial real estate (CRE) loan commitments—
including construction and development—growing
$11.7 billion (21.1 percent).

Noncurrent loan balances totaled $18.1 billion in first
quarter 2015, down $3.7 billion (16.9 percent) from
first quarter 2014. Close to 60 percent of community
banks lowered their noncurrent loan balances from the
year before. The noncurrent rate for community banks
was 1.32 percent, down from 1.36 percent in the previous quarter, and 1.68 percent in first quarter 2014. The
noncurrent rate was 61 basis points below noncommunity banks’ rate (1.93 percent), and 51 basis points
below industry’s rate (1.83 percent). All major loan
categories had lower noncurrent rates from the 2014
quarter. Construction and development’s noncurrent
rate declined 155 basis points from first quarter 2014;
however, it continued to have the highest noncurrent
rate (2.39 percent). The quarterly net charge-off rate for
community banks declined 7 basis points to 0.1 percent,
and it remained below noncommunity banks’ rate of
0.5 percent. All major loan categories had a decline in
net charge-off rate from the year before.

Common Equity Tier 1 Capital Ratio Stood at
14.89 Percent
Equity capital totaled $230.9 billion in first quarter
2015, an increase of $18.5 billion (8.7 percent) from
first quarter 2014. Retained earnings of $2.8 billion
increased $456.6 million (19.8) percent from first quarter 2014, while declining $233.2 million (1.6 percent)
for noncommunity banks. The common equity Tier 1
capital ratio was 14.89 percent for community banks
and 12.33 percent for noncommunity banks.

Four Community Banks Failed in the First Quarter
The number of FDIC-insured community banks totaled
5,946 at the end of first quarter 2015, down 91 banks
from the previous quarter. Four community banks failed
during the quarter.
Author:

Benjamin Tikvina, Financial Analyst
Division of Insurance and Research
(202) 898-6578

Small loans to businesses include loans to commercial borrow­ers up
to $1 million, and farm loans up to $500,000.
3

FDIC Quarterly

17

2015, Volume 9, No. 2

TABLE I-B. Selected Indicators, FDIC-Insured Community Banks
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�������������������������������������������������������������������������������������
Percentage of unprofitable institutions (%)��������������������������������������������������������������������

2015*
0.96
8.61
10.66
1.29
0.10
1.83
3.55
10.61
5,946
5.82

2014*
0.87
8.04
10.49
1.62
0.17
1.28
3.57
0.76
6,233
7.64

2014
0.93
8.47
10.58
1.34
0.21
2.31
3.61
5.13
6,037
6.31

2013
0.90
8.28
10.44
1.73
0.32
0.33
3.59
14.63
6,306
8.40

2012
0.83
7.68
10.18
2.26
0.58
2.25
3.67
56.26
6,541
11.16

2011
0.55
5.19
9.98
2.84
0.87
1.60
3.74
206.68
6,798
16.34

2010
0.21
2.07
9.57
3.25
1.11
-2.26
3.71
211.83
7,014
22.16

* Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 31.

TABLE II-B. Aggregate Condition and Income Data, FDIC-Insured Community Banks
1st Quarter
2015
5,946
439,114

4th Quarter
2014
6,037
442,277

1st Quarter
2014
6,233
449,424

%Change
1Q14-1Q15
-4.6
-2.3

$2,070,611
1,040,157
361,804
402,158
85,303
49,365
190,419
58,876
1,982
45,274
33,205
554
1,367,378
18,923
1,348,455
445,535
8,383
12,805
255,434

$2,064,097
1,039,743
364,964
400,389
85,100
50,059
190,491
59,003
1,828
48,598
31,147
590
1,368,392
18,989
1,349,403
448,768
8,750
12,589
244,586

$2,033,321
998,000
349,563
394,021
77,720
47,267
181,973
55,411
1,766
39,666
27,937
553
1,302,456
19,993
1,282,463
463,601
10,813
12,674
263,770

1.8
4.2
3.5
2.1
9.8
4.4
4.6
6.3
12.2
14.1
18.9
0.0
5.0
-5.3
5.1
-3.9
-22.5
1.0
-3.2

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

2,070,611
1,708,695
1,708,215
480
65,739
1,313,668
114,749
458
15,643
231,066
230,948

2,064,097
1,693,604
1,693,374
230
60,814
1,305,407
125,415
497
15,696
228,886
228,755

2,033,321
1,686,535
1,686,304
231
56,255
1,325,674
111,521
432
14,199
220,634
220,489

1.8
1.3
1.3
108.0
16.9
-0.9
2.9
6.2
10.2
4.7
4.7

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���������������������������������������������������������������������������������������
Full Year
INCOME DATA
2014
Total interest income�������������������������������������������������������������������
$75,693
Total interest expense�����������������������������������������������������������������
9,101
Net interest income��������������������������������������������������������������
66,592
Provision for loan and lease losses��������������������������������������������
2,536
Total noninterest income�������������������������������������������������������������
17,693
Total noninterest expense�����������������������������������������������������������
58,524
Securities gains (losses)�������������������������������������������������������������
561
Applicable income taxes�������������������������������������������������������������
5,191
Extraordinary gains, net��������������������������������������������������������������
2
Total net income (includes minority interests)���������������������
18,598
		
Bank net income������������������������������������������������������������
18,574
Net charge-offs����������������������������������������������������������������������������
2,730
Cash dividends����������������������������������������������������������������������������
9,181
Retained earnings�����������������������������������������������������������������������
9,393
Net operating income�����������������������������������������������������������
18,150

9,853
18,096
10,064
190,941
1,920,671
85,200
259,622
247,346
14,139
57,557
Full Year
2013
$75,694
10,338
65,356
3,182
18,550
59,081
564
4,504
40
17,743
17,720
3,972
8,711
9,009
17,265

9,506
18,638
10,812
195,080
1,911,267
92,924
250,174
286,129
15,959
43,736
1st Quarter
2015
$19,002
2,167
16,835
541
4,683
14,799
245
1,513
0
4,910
4,900
354
2,139
2,762
4,720

10,803
21,954
11,458
204,549
1,875,129
80,207
244,532
237,593
15,082
44,395
1st Quarter
2014
$18,911
2,328
16,582
549
4,165
14,700
144
1,265
4
4,381
4,377
545
2,120
2,258
4,268

(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��������������������������������������������������������������������������������������������������������



FDIC Quarterly

%Change
0.0
-12.0
1.9
-20.3
-4.6
-0.9
-0.6
15.2
-94.3
4.8
4.8
-31.3
5.4
4.3
5.1

-8.8
-17.6
-12.2
-6.7
2.4
6.2
6.2
4.1
-6.3
29.6
%Change
1Q14-1Q15
0.5
-6.9
1.5
-1.3
12.4
0.7
70.4
19.6
-88.1
12.1
11.9
-34.9
0.9
22.3
10.6

N/M - Not Meaningful

18

2015, Volume 9, No. 2

Quarterly Banking Profile
TABLE II-B. Aggregate Condition and Income Data, FDIC-Insured Community Banks
Prior Periods Adjusted for Mergers
1st Quarter
2015
5,946
439,114

4th Quarter
2014
5,946
438,536

1st Quarter
2014
5,946
436,570

%Change
1Q14-1Q15
0.0
0.6

$2,070,611
1,040,157
361,804
402,158
85,303
49,365
190,419
58,876
1,982
45,274
33,205
554
1,367,378
18,923
1,348,455
445,535
8,383
12,805
255,434

$2,037,595
1,022,049
356,077
395,697
83,500
49,269
188,285
59,939
2,090
48,783
31,523
580
1,349,999
18,839
1,331,160
443,328
8,732
12,302
242,072

$1,961,140
957,891
336,749
376,309
74,291
45,557
173,130
55,727
1,985
39,542
28,032
534
1,253,810
19,414
1,234,397
449,258
10,674
11,400
255,412

5.6
8.6
7.4
6.9
14.8
8.4
10.0
5.7
-0.1
14.5
18.5
3.7
9.1
-2.5
9.2
-0.8
-21.5
12.3
0.0

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

2,070,611
1,708,695
1,708,215
480
65,739
1,313,668
114,749
458
15,643
231,066
230,948

2,037,595
1,674,879
1,674,437
442
62,521
1,289,512
121,275
457
15,219
225,765
225,645

1,961,140
1,629,624
1,629,186
439
56,238
1,281,981
104,908
371
13,711
212,526
212,409

5.6
4.9
4.9
9.5
16.9
2.5
9.4
23.6
14.1
8.7
8.7

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���������������������������������������������������������������������������������������
Full Year
INCOME DATA
2014
Total interest income�������������������������������������������������������������������
$74,480
Total interest expense�����������������������������������������������������������������
8,863
Net interest income��������������������������������������������������������������
65,617
Provision for loan and lease losses��������������������������������������������
2,406
Total noninterest income�������������������������������������������������������������
17,350
Total noninterest expense�����������������������������������������������������������
57,507
Securities gains (losses)�������������������������������������������������������������
558
Applicable income taxes�������������������������������������������������������������
4,735
Extraordinary gains, net��������������������������������������������������������������
2
Total net income (includes minority interests)���������������������
18,879
		
Bank net income������������������������������������������������������������
18,855
Net charge-offs����������������������������������������������������������������������������
2,648
Cash dividends����������������������������������������������������������������������������
8,892
Retained earnings�����������������������������������������������������������������������
9,963
Net operating income�����������������������������������������������������������
18,437

9,853
18,096
10,064
190,941
1,920,671
85,200
259,622
247,346
14,139
57,557
Full Year
2013
$71,486
9,752
61,733
3,220
17,500
55,856
551
4,066
40
16,683
16,661
4,071
8,074
8,587
16,206

9,494
18,397
10,949
192,176
1,886,695
88,982
247,776
283,093
13,950
42,845
1st Quarter
2015
$19,002
2,167
16,835
541
4,683
14,799
245
1,513
0
4,910
4,900
354
2,139
2,762
4,720

10,836
21,769
11,477
196,865
1,809,325
74,838
233,384
227,952
12,668
40,439
1st Quarter
2014
$18,034
2,222
15,812
559
3,979
13,978
140
1,185
4
4,213
4,210
569
1,904
2,305
4,102

(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��������������������������������������������������������������������������������������������������������



FDIC Quarterly

%Change
4.2
-9.1
6.3
-25.3
-0.9
3.0
1.2
16.5
-94.3
13.2
13.2
-35.0
10.1
16.0
13.8

-9.1
-16.9
-12.3
-3.0
6.2
13.8
11.2
8.5
11.6
42.3
%Change
1Q14-1Q15
5.4
-2.5
6.5
-3.1
17.7
5.9
75.1
27.6
-88.1
16.5
16.4
-37.7
12.3
19.8
15.1

N/M - Not Meaningful

19

2015, Volume 9, No. 2

TABLE III-B. Aggregate Condition and Income Data by Geographic Region, FDIC-Insured Community Banks
Geographic Regions*

First Quarter 2015
(dollar figures in millions)

All Community Banks
Number of institutions reporting�����������������������������������
5,946
Total employees (full-time equivalent)�������������������������
439,114

New York
698
87,039

Atlanta
734
58,469

Chicago
1,317
92,733

Kansas City
1,528
70,890

Dallas
San Francisco
1,275
394
96,031
33,952

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

$2,070,611
1,040,157
361,804
402,158
85,303
49,365
190,419
58,876
1,982
45,274
33,205
554
1,367,378
18,923
1,348,455
445,535
8,383
12,805
255,434

$528,904
305,536
123,670
107,005
15,734
16,270
44,483
12,822
464
493
10,024
151
373,207
4,443
368,764
102,149
1,157
4,019
52,814

$256,125
136,878
44,443
59,226
15,122
7,890
20,740
7,568
138
1,048
2,207
92
168,349
2,444
165,905
50,704
2,164
1,358
35,993

$388,074
193,421
71,410
70,562
11,578
11,738
35,151
11,714
437
7,039
5,786
63
253,049
3,746
249,303
87,462
1,722
2,156
47,431

$317,286
137,100
41,223
47,949
10,880
4,295
31,127
9,534
431
25,998
5,327
27
209,059
3,072
205,987
70,863
1,296
1,660
37,480

$409,540
181,004
60,235
74,107
24,931
4,527
41,705
13,555
314
8,491
7,018
116
251,656
3,464
248,192
100,398
1,549
2,632
56,769

$170,683
86,218
20,823
43,309
7,058
4,644
17,213
3,683
198
2,206
2,842
104
112,058
1,755
110,303
33,959
494
980
24,947

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

2,070,611
1,708,695
1,708,215
480
65,739
1,313,668
114,749
458
15,643
231,066
230,948

528,904
419,190
418,827
362
22,599
314,786
44,687
283
5,264
59,480
59,430

256,125
213,542
213,501
41
7,184
164,569
12,209
34
1,734
28,606
28,589

388,074
322,548
322,522
26
11,580
263,174
19,003
67
2,911
43,544
43,523

317,286
265,013
265,013
0
9,495
212,059
15,854
4
1,816
34,600
34,598

409,540
346,217
346,217
0
9,405
255,799
16,252
7
2,450
44,613
44,588

170,683
142,186
142,135
51
5,477
103,282
6,744
63
1,468
20,222
20,221

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�������������������������������������

9,853
18,096
10,064
190,941
1,920,671
85,200
259,622
247,346
14,139
57,557

2,729
6,254
2,543
57,170
493,383
35,726
63,456
54,534
3,650
16,986

1,378
2,764
1,678
21,756
234,999
9,327
31,234
9,688
531
8,693

1,817
3,623
2,710
34,598
359,563
13,222
48,107
67,196
6,031
9,617

1,444
1,762
1,148
22,657
295,385
10,737
44,308
68,616
803
7,943

2,032
2,654
1,133
38,476
378,373
12,021
47,937
39,890
583
9,079

452
1,039
851
16,285
158,969
4,168
24,581
7,421
2,541
5,239

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

$19,002
2,167
16,835
541
4,683
14,799
245
1,513
0
4,910
4,900
354
2,139
2,762
4,720

$4,715
688
4,026
201
901
3,407
111
455
1
976
970
118
274
696
896

$2,418
277
2,141
68
590
2,014
33
183
-1
499
498
66
158
340
475

$3,493
393
3,100
74
1,224
2,931
29
331
1
1,017
1,016
83
582
434
992

$2,937
325
2,612
68
697
2,217
36
169
1
892
892
19
507
385
861

$3,861
361
3,500
127
889
2,969
27
202
0
1,117
1,116
70
492
624
1,095

$1,578
123
1,455
5
381
1,260
8
172
0
408
408
-2
124
284
402

* See Table V-A (page 11) for explanations.

FDIC Quarterly

20

2015, Volume 9, No. 2

Quarterly Banking Profile
Table IV-B. First Quarter 2015, FDIC-Insured Community Banks
All Community Banks
1st Quarter
2015
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����������������������������������������������������������������
Net interest income to operating revenue����������������������
% of unprofitable institutions������������������������������������������
% of institutions with earnings gains������������������������������

4.00
0.46
3.55
0.91
2.89
0.11
0.92
1.25
0.96
8.61
0.10
152.80
68.39
78.24
5.82
62.76

4th Quarter
2014

First Quarter 2015, Geographic Regions*
New York

4.11
0.48
3.63
0.91
3.00
0.13
0.91
1.17
0.93
8.42
0.25
78.73
69.84
78.77
10.12
61.01

3.86
0.56
3.30
0.69
2.60
0.15
0.68
1.09
0.74
6.62
0.13
169.70
68.81
81.71
6.59
61.32

Atlanta

Chicago

4.17
0.48
3.70
0.93
3.19
0.11
0.75
1.08
0.79
7.08
0.16
102.69
73.32
78.39
9.81
61.99

3.92
0.44
3.48
1.27
3.04
0.08
1.03
1.40
1.05
9.44
0.13
88.53
67.49
71.70
6.30
63.48

Kansas City

Dallas

4.00
0.44
3.56
0.88
2.81
0.09
1.09
1.34
1.13
10.43
0.04
350.16
66.30
78.94
3.66
64.73

4.15
0.39
3.76
0.88
2.95
0.13
1.09
1.31
1.11
10.19
0.11
182.13
67.35
79.74
3.84
60.47

San Francisco
4.02
0.31
3.71
0.90
2.99
0.01
0.95
1.38
0.97
8.18
-0.01
-204.32
68.35
79.24
10.15
64.21

Table V-B. Full Year 2014, FDIC-Insured Community Banks
All Community Banks
Full Year
2014
Performance ratios (%)
Yield on earning assets��������������������������������������������������
Cost of funding earning assets��������������������������������������
Net interest margin��������������������������������������������������
Noninterest income to assets�����������������������������������������
Noninterest expense to assets���������������������������������������
Loan and lease loss provision to assets������������������������
Net operating income to assets�������������������������������������
Pretax return on assets��������������������������������������������������
Return on assets�������������������������������������������������������������
Return on equity�������������������������������������������������������������
Net charge-offs to loans and leases������������������������������
Loan and lease loss provision to net charge-offs���������
Efficiency ratio����������������������������������������������������������������
Net interest income to operating revenue����������������������
% of unprofitable institutions������������������������������������������
% of institutions with earnings gains������������������������������

4.10
0.49
3.61
0.89
2.93
0.13
0.91
1.19
0.93
8.47
0.21
92.89
69.10
79.01
6.31
63.72

Full Year
2013

Full Year 2014, Geographic Regions*
New York

4.16
0.57
3.59
0.94
2.99
0.16
0.87
1.12
0.90
8.28
0.32
80.10
69.87
77.89
8.40
53.50

3.93
0.60
3.34
0.64
2.66
0.17
0.61
0.96
0.64
5.88
0.21
117.72
70.61
82.84
8.16
59.07

Atlanta
4.32
0.53
3.79
0.86
3.21
0.12
0.77
1.01
0.79
7.21
0.28
65.70
73.94
80.15
10.15
65.15

Chicago
4.02
0.47
3.55
1.20
3.08
0.12
0.99
1.29
1.00
9.13
0.29
66.82
68.46
73.17
7.85
59.49

Kansas City

Dallas

4.09
0.50
3.59
0.89
2.79
0.10
1.13
1.36
1.15
10.53
0.16
98.17
65.69
78.87
3.76
65.87

4.25
0.42
3.84
0.91
3.02
0.13
1.11
1.32
1.13
10.45
0.18
116.72
67.55
79.49
3.70
66.82

San Francisco
4.15
0.34
3.81
0.88
3.08
0.04
0.97
1.31
0.98
8.28
0.07
90.18
69.59
80.11
8.96
65.17

* See Table V-A (page 11) for explanations.

FDIC Quarterly

21

2015, Volume 9, No. 2

Table VI-B. Loan Performance, FDIC-Insured Community Banks
Geographic Regions*
March 31, 2015

All Community Banks

New York

Atlanta

Chicago

Kansas City

Dallas

San Francisco

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

0.70
0.63
0.49
0.24
0.50
1.08
0.59
1.61
1.56
1.62
0.61
0.72

0.68
0.77
0.54
0.19
0.60
0.96
0.52
2.99
2.11
3.02
0.35
0.73

0.82
0.79
0.54
0.24
0.47
1.34
0.66
1.32
1.15
1.32
0.49
0.82

0.75
0.57
0.54
0.41
0.48
1.15
0.60
0.97
1.09
0.97
0.30
0.72

0.65
0.48
0.47
0.28
0.32
0.92
0.66
0.96
2.34
0.90
0.83
0.69

0.80
0.61
0.47
0.31
0.52
1.34
0.60
1.77
0.96
1.79
0.63
0.81

0.37
0.39
0.25
0.15
0.40
0.63
0.49
0.60
0.83
0.59
0.59
0.40

Percent of Loans Noncurrent**
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����������������������������������������������������������

1.43
2.39
1.33
0.54
0.80
1.67
1.11
0.71
0.95
0.70
0.91
1.32

1.68
2.82
1.55
0.27
0.92
2.17
1.27
0.97
1.34
0.95
4.00
1.68

1.78
3.90
1.58
1.03
0.77
1.57
1.15
0.82
0.55
0.83
0.75
1.64

1.61
2.81
1.51
1.11
0.96
1.83
1.17
0.45
0.86
0.44
0.40
1.43

0.93
1.94
1.10
0.40
0.44
0.93
1.04
0.48
1.11
0.45
0.36
0.84

1.14
1.35
1.04
1.06
0.59
1.25
0.94
0.88
0.61
0.89
0.51
1.05

0.95
1.88
0.89
0.27
0.59
0.99
1.06
0.34
0.65
0.33
0.53
0.93

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

0.06
-0.02
0.05
0.04
0.11
0.09
0.16
0.72
4.85
0.57
0.12
0.10

0.08
0.11
0.08
0.03
0.17
0.09
0.16
0.98
4.60
0.84
0.21
0.13

0.11
0.16
0.12
0.18
0.10
0.09
0.25
0.64
1.19
0.63
0.27
0.16

0.10
0.09
0.06
0.07
0.18
0.14
0.20
0.53
4.27
0.39
0.09
0.13

-0.02
-0.53
0.03
-0.02
0.03
0.06
0.06
0.70
10.61
0.22
0.04
0.04

0.05
0.01
0.03
0.02
0.04
0.09
0.20
0.73
1.30
0.72
0.10
0.11

-0.08
-0.17
-0.08
0.00
-0.10
-0.03
0.05
0.56
2.39
0.45
0.55
-0.01

Loans Outstanding (in billions)
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����������������������������������������������������������

$1,040.2
85.3
402.2
82.0
49.4
361.8
190.4
58.9
2.0
56.9
78.5
1,367.9

$305.5
15.7
107.0
41.1
16.3
123.7
44.5
12.8
0.5
12.4
10.5
373.4

$136.9
15.1
59.2
6.0
7.9
44.4
20.7
7.6
0.1
7.4
3.3
168.4

$193.4
11.6
70.6
14.0
11.7
71.4
35.2
11.7
0.4
11.3
12.8
253.1

$137.1
10.9
47.9
7.2
4.3
41.2
31.1
9.5
0.4
9.1
31.3
209.1

$181.0
24.9
74.1
6.1
4.5
60.2
41.7
13.6
0.3
13.2
15.5
251.8

$86.2
7.1
43.3
7.7
4.6
20.8
17.2
3.7
0.2
3.5
5.0
112.2

Memo: Unfunded Commitments (in millions)
Total Unfunded Commitments���������������������������������������������
Construction and development: 1-4 family residential��
Construction and development: CRE and other�����������
Commercial and industrial��������������������������������������������

259,622
19,504
46,100
87,943

63,456
4,099
13,704
20,067

31,234
3,747
6,646
9,275

48,107
2,018
6,458
18,068

44,308
2,146
5,305
14,586

47,937
5,714
10,576
16,807

24,581
1,779
3,411
9,140

* See Table V-A (page 11) for explanations.
** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.

FDIC Quarterly

22

2015, Volume 9, No. 2

Quarterly Banking Profile
INSURANCE FUND INDICATORS
■
■
■
■

Insured Deposits Grow by 2.3 Percent
DIF Reserve Ratio Rises 2 Basis Points to 1.03 Percent
Four Institutions Fail During First Quarter
Changes to Risk-Based Assessments Go Into Effect

During the first quarter of 2015, total assets of the
nation’s 6,419 FDIC-insured commercial banks
and savings institutions increased by $224.3 billion
(1.4 percent). Domestic office deposits increased
by $210.2 billion (2.0 percent). Domestic savings
and interest-bearing checking accounts increased
by $146.5 billion (2.5 percent), noninterest-bearing
deposits increased by $84.2 billion (3.0 percent), and
time deposits decreased by $20.5 billion (1.2 percent).
Deposits held in foreign offices decreased by
$15.8 billion (1.1 percent). Asset growth was also
supported by a $30.7 billion increase in equity capital
and a $10.7 billion increase in securities sold under
agreements to repurchase. Federal Home Loan Bank
advances decreased by $31.2 billion during the quarter.

$65,296 million (unaudited). Assessment income of
$2.2 billion and a negative provision for insurance
losses of $426 million were the largest sources of the
increase to the DIF during the quarter. Interest earned
and unrealized gains on securities added $291 million to
the DIF, while operating expenses net of other revenue
reduced the fund by $390 million. The DIF’s reserve
ratio rose to 1.03 percent on March 31, 2015, from
1.01 percent at December 31, 2014, and 0.80 percent
four quarters ago. The March 31, 2015, reserve ratio
is the highest for the DIF since March 31, 2008, when
the reserve ratio was 1.19 percent. Four FDIC-insured
institutions, with combined assets of $6.3 billion, failed
during the first quarter of 2015, at an estimated cost to
the DIF of $848 million.

Estimated insured deposits (including U.S. branches of
foreign banks) increased by 2.3 percent ($139.7 billion)
during the first quarter of 2015 to $6.3 trillion. Over the
past four quarters, estimated insured deposits increased
by 3.6 percent ($222.5 billion). For institutions existing
as of December 31, 2014, and March 31, 2015, insured
deposits increased during the first quarter at 4,679 institutions (73 percent), decreased at 1,716 institutions
(27 percent), and remained unchanged at 33 institutions.

Effective April 1, 2011, the deposit insurance assessment base changed to average consolidated total assets
minus average tangible equity.1 Revisions to insurance
assessment rates and risk-based pricing rules for large
banks (banks with assets greater than $10 billion) also
became effective on that date.2 Table 1 shows the distribution of the assessment base by institution asset size
category as of the first quarter.
There is an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under Dodd-Frank.
2
The Fourth Quarter 2010 Quarterly Banking Profile includes a more
detailed explanation of these changes.
1

The Deposit Insurance Fund (DIF) increased by
4.0 percent ($2.5 billion) during the first quarter to
Table 1

Distribution of the Assessment Base for FDIC-Insured Institutions*
by Asset Size
Data as of March 31, 2015
Asset Size
Less Than $1 Billion
$1 - $10 Billion
$10 - $50 Billion
$50 - $100 Billion
Over $100 Billion
Total

Number of
Institutions
5,725
582
75
14
23
6,419

Percent of
Assessment Base**
Total Institutions
($ Bil.)
89.2
$1,166.7
9.1
1,386.8
1.2
1,449.4
0.2
917.2
0.4
8,567.1
100.0
13,487.3

Percent of
Base
8.7
10.3
10.7
6.8
63.5
100.0

* Excludes insured U.S. branches of foreign banks.
** Average consolidated total assets minus average tangible equity, with adjustments for banker’s banks and custodial banks.

FDIC Quarterly

23

2015, Volume 9, No. 2

Custodial Banks
Effective January 1, 2015, the Final Rule conforms the
calculation of the deduction to the assessment base for
custodial banks to the new asset risk weights under the
standardized approach in the new regulatory capital
rules. The revision applies to all custodial banks. The
assessment base deduction for custodial banks will
continue to be defined as the daily or weekly average
of a certain amount of specified low-risk, liquid assets,
subject to the limitation that the daily or weekly average value of these assets cannot exceed the daily or
weekly average value of deposits that are classified as
transaction accounts and are identified by the bank as
being directly linked to a fiduciary or custodial and safekeeping account asset. (See the Final Rule for a detailed
explanation of the changes to the deduction for custodial banks.3)

Dodd-Frank requires that, for at least five years, the
FDIC must make available to the public the reserve
ratio and the Designated Reserve Ratio (DRR) using
both estimated insured deposits and the new assessment
base. As of March 31, 2015, the FDIC reserve ratio
would have been 0.48 percent using the new assessment
base (compared to 1.03 percent using estimated insured
deposits), and the 2 percent DRR using estimated
insured deposits would have been 0.94 percent using
the new assessment base.

Changes to Risk-Based Assessments
On November 18, 2014, the FDIC Board of Directors
adopted a Final Rule on assessments that revises the
FDIC’s risk-based deposit insurance assessment system
to reflect recent changes in regulatory capital rules.
Specifically, the Final Rule (1) revises the ratios and
thresholds for capital evaluations used to determine
assessments, (2) revises the calculation of the deduction to the assessment base for custodial banks, and
(3) requires that highly complex institutions measure
counterparty exposure for assessment purposes using the
Basel III standardized approach.

Highly Complex Institutions
The Final Rule requires that all highly complex institutions measure counterparty exposure for assessment
purposes using the Basel III standardized approach
credit equivalent amount for derivatives and the Basel
III standardized approach exposure amount for securities
financing transactions in the regulatory capital rules.
The amount of derivatives exposures will be reduced
by qualifying cash collateral.4 (See the Final Rule for a
detailed explanation of the changes to the measurement
of counterparty exposure for assessment purposes.5)

Capital Evaluations for Assessments
Changes to regulatory capital rules that became effective at the start of this year include a new common
equity Tier 1 capital ratio and new prompt corrective
action thresholds for the existing Tier 1 risk-based
capital ratio. Therefore, effective January 1, 2015, to
conform capital evaluations for assessment purposes to
the new capital rules, the ratios and ratio thresholds for
determining capital evaluations for deposit insurance
assessment purposes will be as shown in Table 2.

Author:

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

The recent changes to regulatory capital rules also
introduced a supplementary leverage ratio that applies
to some institutions and prompt corrective action
thresholds for that ratio, to take effect at the start of
2018. Therefore, effective January 1, 2018, to conform
capital evaluations for assessment purposes to regulatory
capital rules, the ratios and ratio thresholds for determining capital evaluations for deposit insurance assessment purposes will be as shown in Table 3.
https://www.fdic.gov/news/news/financial/2014/fil14057a.pdf.
In general, a highly complex bank is a bank with at least $50 billion
in total assets, controlled by a U.S. parent with at least $500 billion in
assets; or a bank that is a processing bank or trust company with fiduciary assets of at least $500 billion.
5
https://www.fdic.gov/news/news/financial/2014/fil14057a.pdf.

3

4

FDIC Quarterly

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2015, Volume 9, No. 2

Quarterly Banking Profile
Table 2

Capital Ratios Used to Determine Capital Evaluations for Assessment Purposes
Effective January 1, 2015
Capital Evaluations
Well Capitalized
Adequately Capitalized*
Undercapitalized

Total Risk-Based
Capital Ratio

Tier 1 Risk-Based
Capital Ratio

Common Equity Tier 1
Capital Ratio

Leverage Ratio

≥10%
≥8%
≥6.5%
≥8%
≥6%
≥4.5%
Does not qualify as either Well Capitalized or Adequately Capitalized

≥5%
≥4%

* An institution is Adequately Capitalized if it is not Well Capitalized, but it satisfies each of the listed capital ratio standards for Adequately Capitalized.

Table 3

Capital Ratios Used to Determine Capital Evaluations for Assessment Purposes
Effective January 1, 2018*

Capital Evaluations
Well Capitalized
Adequately Capitalized**
Undercapitalized

Total RiskBased
Capital
Ratio

≥10%
≥8%

Tier 1
Risk-Based
Capital
Ratio

Common
Equity Tier 1
Capital
Ratio

Leverage
Ratio

Supplementary
Leverage Ratio
(Advanced Approaches
Banking Organizations)

Supplementary
Leverage Ratio
(Subsidiary IDIs of
Covered BHCs)

≥8%
≥6.5%
≥5%
Not applicable
≥6%
≥4.5%
≥4%
≥3%
Does not qualify as either Well Capitalized or Adequately Capitalized

≥6%
≥3%

* In general, an insured depository institution (IDI) is an advanced approaches bank if it has total consolidated assets of $250 billion or more, has total consolidated on-balance sheet foreign
exposures of $10 billion or more, or is a subsidiary of an IDI, bank holding company (BHC), or savings and loan holding company that uses the advanced approaches to calculate risk-weighted
assets. A covered BHC is any top-tier U.S. BHC with more than $700 billion in total consolidated assets or more than $10 trillion in assets under custody.
** An institution is Adequately Capitalized if it is not Well Capitalized, but it satisfies each of the listed capital ratio standards for Adequately Capitalized.

FDIC Quarterly

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2015, Volume 9, No. 2

Table I-C. Insurance Fund Balances and Selected Indicators
Deposit Insurance Fund*
1st
4th
3rd
2nd
Quarter
Quarter
Quarter
Quarter
2014
2013
2013
2013
$47,191
$40,758
$37,871
$35,742

1st
Quarter
2015
$62,780

4th
Quarter
2014
$54,320

3rd
Quarter
2014
$51,059

2nd
Quarter
2014
$48,893

2,189

2,030

2,009

2,224

2,393

60

70

80

87

45

0
396

0
408

0
406

0
428

0
422

-426

-6,787

-1,663

-204

348

6

-43

6

6

9

231
2,516

24
8,460

-91
3,261

73
2,166

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

65,296

62,780

54,320

33.55

33.03

33.27

Reserve Ratio (%)�������������

1.03

1.01

6,343,288
3.64

(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���

4th
Quarter
2012
$25,224

3rd
Quarter
2012
$22,693

2nd
Quarter
2012
$15,292

1st
Quarter
2012
$11,827

2,339

2,526

2,645

2,937

2,833

2,933

3,694

23

34

54

-9

66

-8

81

20

302
436

156
298

0
439

0
436

0
469

0
442

0
407

0
460

-4,588

-539

-33

-499

-3,344

-84

-807

12

9

46

51

55

1,878

57

4,095

63

25
1,702

-277
6,433

71
2,887

-96
2,129

30
2,784

-22
7,734

7
2,531

-108
7,401

160
3,465

51,059

48,893

47,191

40,758

37,871

35,742

32,958

25,224

22,693

15,292

34.82

36.79

43.19

61.58

66.88

133.73

178.67

222.85

479.49

NM

0.89

0.84

0.80

0.79

0.68

0.64

0.60

0.45

0.35

0.32

0.22

6,203,596

6,134,428

6,102,158

6,120,778

6,010,853

5,967,558

5,951,124

5,999,614

7,405,043

7,248,466

7,081,206

7,031,331

3.21

2.80

2.54

2.02

-18.83

-17.67

-15.96

-14.67

6.19

7.32

8.55

10.22

Domestic Deposits����������� 10,616,373 10,408,062 10,213,072 10,099,337
Percent change from
   four quarters earlier�������
6.56
5.93
6.04
7.16

9,962,453

9,825,398

9,631,580

9,424,503

9,454,658

9,474,585

9,084,803

8,937,725

8,848,706

5.37

3.70

6.02

5.45

6.85

7.88

6.55

8.40

10.51

6,739

6,821

6,900

6,949

7,028

7,092

7,190

7,254

7,317

Estimated Insured
Deposits**��������������������������
Percent change from
   four quarters earlier�������

Number of Institutions
Reporting�����������������������

6,428

6,518

6,598

6,665

2,224

1st
Quarter
2013
$32,958

DIF Reserve Ratios

Deposit Insurance Fund Balance
and Insured Deposits
($ Millions)

Percent of Insured Deposits
1.01
0.79
0.60

0.64

0.80

0.84

1.03

0.89

3/12 6/12

$15,292
22,693

7,081,206

9/12

25,224

7,248,466

12/12

32,958

7,405,043

3/13

35,742

5,999,614

6/13

37,871

5,951,124

9/13

40,758

5,967,558

12/13

47,191

6,010,853

3/14

48,893

6,120,778

6/14

51,059

6,102,158

9/14

54,320

6,134,428

0.35

9/12 12/12 3/13

6/13

9/13 12/13

3/14 6/14 9/14 12/14 3/15

$7,031,331

3/12

0.68

0.22

DIF-Insured
Deposits

6/12

0.45
0.32

DIF
Balance

12/14

62,780

6,203,596

3/15

65,296

6,343,288

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

2015***
253
$60,276

2014***
411
$126,106

2014
291
$86,712

2013

2012

2011

2010

467
$152,687

651
$232,701

813
$319,432

884
$390,017

Failed Institutions
51
92
Number of institutions����������������������������������������������������������������������
4
5
18
24
157
$11,617
$34,923
Total assets****���������������������������������������������������������������������������������
$6,299
$718
$2,914
$6,044
$92,085
Assisted Institutions
0
0
Number of institutions����������������������������������������������������������������������
0
0
0
0
0
$0
$0
$0
$0
$0
$0
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 provided unlimited coverage for noninterest-bearing transaction accounts for two years beginning December 31, 2010, and ending December 31, 2012.
*** Through March 31.
**** Total assets are based on final Call Reports submitted by failed institutions.

FDIC Quarterly

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2015, Volume 9, No. 2

Quarterly Banking Profile
Table III-C. Estimated FDIC-Insured Deposits by Type of Institution
(dollar figures in millions)
March 31, 2015
Commercial Banks and Savings Institutions

Number of
Institutions

Total
Assets

Domestic
Deposits*

Est. Insured
Deposits

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

5,570
3,671
1,050
849

$14,736,631
2,326,461
10,116,115
2,294,055

$9,775,364
1,821,262
6,409,659
1,544,443

$5,655,476
1,333,868
3,538,023
783,585

FDIC-Insured Savings Institutions����������������������������������������������
		 OCC-Supervised Savings Institutions�����������������������������������
		 FDIC-Supervised Savings Institutions�����������������������������������

849
436
413

1,041,431
684,087
357,343

802,782
533,765
269,017

659,289
442,319
216,970

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

6,419

15,778,062

10,578,146

6,314,765

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

9

114,229

38,226

28,524

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

6,428

15,892,292

10,616,373

6,343,288

* Excludes $1.4 trillion in foreign office deposits, which are not FDIC insured.

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range
Quarter Ending December 31, 2014 (dollar figures in billions)
Number of
Annual Rate in Basis Points
Institutions
2.50-5.00
1,517
5.01-7.50
3,088
7.51-10.00
1,091
10.01-15.00
509
15.01-20.00
25
20.01-25.00
242
25.01-30.00
3
30.01-35.00
42
greater than 35.00
1

Percent of Total
Institutions
23.27
47.38
16.74
7.81
0.38
3.71
0.05
0.64
0.02

Amount of
Assessment Base*
$3,350.0
8,048.5
1,311.3
473.4
71.8
68.3
0.4
8.9
6.0

Percent of Total
Assessment Base
25.11
60.34
9.83
3.55
0.54
0.51
0.00
0.07
0.05

* Beginning in the second quarter of 2011, the assessment base was changed to average consolidated total assets minus tangible equity, as
required by the Dodd-Frank Act.

FDIC Quarterly

27

2015, Volume 9, No. 2

Quarterly Banking Profile

Notes to Users

The fourth step includes organizations that operate within a
limited geographic scope. This limitation of scope is used as a
proxy measure for a bank’s relationship approach to banking.
Banks that operate within a limited market area have more
ease in managing relationships at a personal level. Under this
step, four criteria are applied to each banking organization.
They include both a minimum and maximum number of total
banking offices, a maximum level of deposits for any one
office, and location-based criteria. The limits on the number
of and deposits per office are gradually adjusted upward over
time. For banking offices, banks must have more than one
office, and the maximum number of offices starts at 40 in 1985
and reaches 75 in 2010. The maximum level of deposits for
any one office is $1.25 billion in deposits in 1985 and $5 billion in deposits in 2010. The remaining geographic limitations
are also based on maximums for the number of states (fixed at
3) and large metropolitan areas (fixed at 2) in which the organization maintains offices. Branch office data are based on the
most recent data from the annual June 30 Summary of Deposits
Survey that are available at the time of publication.
Finally, the definition establishes an asset-size limit, also
adjusted upward over time from $250 million in 1985 to
$1 billion in 2010, below which the limits on banking activi­
ties and geographic scope are waived. This final step acknowledges the fact that most of those small banks that are not
excluded as specialty banks meet the requirements for banking activities and geographic limits in any event.

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

Tables I-A through VIII-A.
The information presented in Tables I-A through V-A of
the FDIC Quarterly Banking Profile is aggregated for all FDICinsured institutions, both commercial banks and s­ avings 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.

Tables I-B through VI-B.

Summary of FDIC Research Definition of Community
Banking Organizations

The information presented in Tables I-B through VI-B is
aggregated for all FDIC-insured commercial banks and savings
institutions meeting the criteria for community banks that
were developed for the FDIC’s Community Banking Study,
published in December, 2012: http://fdic.gov/regulations/
resources/cbi/report/cbi-full.pdf.
The determination of which insured institutions are considered community banks is based on five steps.
The first step in defining a community bank is to aggre­gate
all charter-level data reported under each holding company
into a single banking organization. This aggrega­tion applies
both to balance-sheet measures and the number and location
of banking offices. Under the FDIC definition, if the banking
organization is designated as a community bank, every charter reporting under that organization is also considered a
community bank when working with data at the charter
level.
The second step is to exclude any banking organization
where more than 50 percent of total assets are held in certain
specialty banking charters, including: credit card specialists,
consumer nonbank banks, industrial loan compa­nies, trust companies, bankers’ banks, and banks holding 10 percent or more
of total assets in foreign offices.
Once the specialty organizations are removed, the third step
involves including organizations that engage in basic banking
activities as measured by the total loans-to-assets ratio (greater than 33 percent) and the ratio of core depos­its to assets
(greater than 50 percent). Core deposits are defined as nonbrokered deposits in domestic offices. Analysis of the underlying data shows that these thresholds establish meaningful
levels of basic lending and deposit gathering and still allow
for a degree of diversity in how indi­vidual banks construct
their balance sheets.
FDIC Quarterly

Community banks are designated at the level of the banking.
(All charters under designated holding companies are considered community banking charters.)
Exclude: Any organization with:
— No loans or no core deposits
— Foreign Assets ≥ 10% of total assets
— More than 50% of assets in certain specialty banks,
including:
• credit card specialists
• consumer nonbank banks1
• industrial loan companies
• trust companies
• bankers’ banks
Include: All remaining banking organizations with:
— Total assets < indexed size threshold  2
— Total assets ≥ indexed size threshold, where:
• Loan to assets > 33%
• Core deposits to assets > 50%
• More than 1 office but no more than the indexed
­maximum number of offices.3
Consumer nonbank banks are financial institutions with limited charters that can make commercial loans or take deposits, but not both.
2
Asset size threshold indexed to equal $250 million in 1985 and
$1 billion in 2010.
3
Maximum number of offices indexed to equal 40 in 1985 and 75
in 2010.
1

29

2015, Volume 9, No. 2

• Number of large MSAs with offices ≤ 2
• Number of states with offices ≤ 3
• No single office with deposits > indexed maximum
branch deposit size.4

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.

Tables I-C through IV-C.
A separate set of tables (Tables I-C through IV-C) 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.

ACCOUNTING CHANGES

Accounting by Private Companies for Identifiable Intangible Assets
in a Business Combination
In December 2014, the FASB issued ASU No. 2014-18,
“Accounting for Identifiable Intangible Assets in a Business
Combination,” which is a consensus of the Private Company
Council (PCC). This ASU provides an accounting alternative that permits a private company, as defined in U.S.
GAAP (and discussed in a later section of these Supple­
mental Instructions), to simplify the accounting for certain
intangible assets. The accounting alternative applies when a
private company is required to recognize or otherwise consider the fair value of intangible assets as a result of certain
transactions, including when applying the acquisition method
to a business combination under ASC Topic 805, Business
Combinations (formerly FASB Statement No. 141 (revised
2007), “Business Combinations”).
Under ASU 2014-18, a private company that elects the
accounting alternative should no longer recognize separately
from goodwill:
• Customer-related intangible assets unless they are capable
of being sold or licensed independently from the other
assets of a business, and
• Noncompetition agreements.
However, because mortgage servicing rights and core deposit
intangibles are regarded as capable of being sold or licensed
independently, a private company that elects this accounting
alternative must recognize these intangible assets separately
from goodwill, initially measure them at fair value, and subsequently measure them in accordance with ASC Topic 350,
Intangibles–Goodwill and Other (formerly FASB Statement
No. 142, “Goodwill and Other Intangible Assets”).
A private company that elects the accounting alternative in
ASU 2014-18 also must adopt the private company goodwill
accounting alternative described in ASU 2014-02,
“Accounting for Goodwill.” However, a private company that
elects the goodwill accounting alternative in ASU 2014-02 is
not required to adopt the accounting alternative for identifiable intangible assets in ASU 2014-18.
A private company’s decision to adopt ASU 2014-18 must be
made upon the occurrence of the first business combination
(or other transaction within the scope of the ASU) in fiscal
years beginning after December 15, 2015. The effective date
of the private company’s decision to adopt the accounting
alternative for identifiable intangible assets depends on the
timing of that first transaction.
If the first transaction occurs in the private company’s first
fiscal year beginning after December 15, 2015, the adoption
will be effective for that fiscal year’s annual financial reporting period and all interim and annual periods thereafter. If

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. (TFR filers began filing Call Reports effective
with the quarter ending March 31, 2012.) This information is
stored on and retrieved from the FDIC’s Research
Information System (RIS) database.

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. (TFR
­filers began filing Call Reports effective with the quarter ending March 31, 2012.)
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
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. For the community bank subgroup, growth rates will reflect changes over time in the
number and identities of institutions designated as community banks, as well as changes in the assets and liabilities, and
income and expenses of group members. Unless indicated
otherwise, growth rates are not adjusted for mergers or other
changes in the composition of the community bank subgroup.
Maximum branch deposit size indexed to equal $1.25 billion in 1985
and $5 billion in 2010.
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2015, Volume 9, No. 2

Quarterly Banking Profile
the first transaction occurs in a fiscal year beginning after
December 15, 2016, the adoption will be effective in the
interim period that includes the date of the transaction and
subsequent interim and annual periods thereafter.
Early application of the intangibles accounting alternative is
permitted for any annual or interim period for which a private
company’s financial statements have not yet been made available for issuance. Customer-related intangible assets and noncompetition agreements that exist as of the beginning of the
period of adoption should continue to be accounted for separately from goodwill, i.e., such existing intangible assets
should not be combined with goodwill.
A bank or savings association that meets the private company
definition in U.S. GAAP is permitted, but not required, to
adopt ASU 2014-18 for Call Report purposes and may choose
to early adopt the ASU, provided it also adopts the private
company goodwill accounting alternative. If a private institution issues U.S. GAAP financial statements and adopts ASU
2014-18, it should apply the ASU’s intangible asset accounting alternative in its Call Report in a manner consistent with
its reporting of intangible assets in its financial statements.
For additional information on the private company
­accounting alternative for identifiable intangible assets,
­institutions should refer to ASU 2014-18, which is available
at http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=
1176156316498.
Private Company Accounting Alternatives, Including Accounting
for Goodwill
In May 2012, the Financial Accounting Foundation, the independent private sector organization responsible for the oversight of the FASB, approved the establishment of the PCC to
improve the process of setting accounting standards for private
companies. The PCC is charged with working jointly with the
FASB to determine whether and in what circumstances to
provide alternative recognition, measurement, disclosure, display, effective date, and transition guidance for private companies reporting under U.S. GAAP. Alternative guidance for
private companies may include modifications or exceptions to
otherwise applicable existing U.S. GAAP standards. The
banking agencies have concluded that a bank or savings association that is a private company, as defined in U.S. GAAP
(as discussed in the next section of these Supplemental
Instructions), is permitted to use private company accounting
alternatives issued by the FASB when preparing its Call
Reports, except as provided in 12 U.S.C. 1831n(a) as
described in the following sentence. If the agencies determine
that a particular accounting principle within U.S. GAAP,
including a private company accounting alternative, is inconsistent with the statutorily specified supervisory objectives, the
agencies may prescribe an accounting principle for regulatory
reporting purposes that is no less stringent than U.S. GAAP.
In such a situation, an institution would not be permitted to
use that particular private company accounting alternative or
other accounting principle within U.S. GAAP for Call Report
purposes. The agencies would provide appropriate notice if
they were to disallow any accounting alternative under the
statutory process.
On January 16, 2014, the FASB issued ASU No. 2014-02,
“Accounting for Goodwill,” which is a consensus of the PCC.
This ASU generally permits a private company to elect to
amortize goodwill on a straight-line basis over a period of ten

FDIC Quarterly

years (or less than ten years if more appropriate) and apply a
simplified impairment model to goodwill. In addition, if a private company chooses to adopt the ASU’s goodwill accounting alternative, the ASU requires the private company to
make an accounting policy election to test goodwill for
impairment at either the entity level or the reporting unit
level. Goodwill must be tested for impairment when a triggering event occurs that indicates that the fair value of an entity
(or a reporting unit) may be below its carrying amount. In
contrast, U.S. GAAP does not otherwise permit goodwill to
be amortized, instead requiring goodwill to be tested for
impairment at the reporting unit level annually and between
annual tests in certain circumstances. The ASU’s goodwill
accounting alternative, if elected by a private company, is
effective prospectively for new goodwill recognized in annual
periods beginning after December 15, 2014, and in interim
periods within annual periods beginning after December 15,
2015. Goodwill existing as of the beginning of the period of
adoption is to be amortized prospectively over ten years (or
less than ten years if more appropriate). The ASU states that
early application of the goodwill accounting alternative is permitted for any annual or interim period for which a private
company’s financial statements have not yet been made available for issuance.
A bank or savings association that meets the private company
definition in ASU 2014-02, as discussed in the following section of these Supplemental Instructions (i.e., a private institution), is permitted, but not required, to adopt this ASU for
Call Report purposes and may choose to early adopt the ASU.
If a private institution issues U.S. GAAP financial statements
and adopts the ASU, it should apply the ASU’s goodwill
accounting alternative in its Call Report in a manner consistent with its reporting of goodwill in its financial statements.
Thus, for example, a private institution with a calendar year
fiscal year that chooses to adopt ASU 2014-02 must apply the
ASU’s provisions in its December 31, 2015, and subsequent
quarterly Call Reports unless early application of the ASU is
elected. If a private institution with a calendar year fiscal year
chooses to early adopt ASU 2014-02 for first quarter 2015
financial reporting purposes, the institution may implement
the provisions of the ASU in its Call Report for March 31,
2015. This would require the private institution to report in
its first quarter 2015 Call Report three months’ amortization
of goodwill existing as of January 1, 2015, and the amortization of any new goodwill recognized in the first three months
of 2015. Goodwill amortization expense should be reported
unless the amortization is associated with a discontinued operation, in which case the goodwill amortization should be
included within the results of discontinued operations and
reported as “Extraordinary items and other adjustments, net of
income taxes.”
For additional information on the private company accounting alternative for goodwill, institutions should refer to ASU
2014-02, which is available at http://www.fasb.org/jsp/FASB/
Page/SectionPage&cid=1176156316498.
Definitions of Private Company and Public Business Entity
According to ASU No. 2014-02, “Accounting for Goodwill,”
a private company is a business entity that is not a public
business entity. ASU No. 2013-12, “Definition of a Public
Business Entity,” which was issued in December 2013, added
this term to the Master Glossary in the Accounting Standards
Codification. This ASU states that a business entity, such as
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2015, Volume 9, No. 2

a bank or savings association, that meets any one of five criteria set forth in the ASU is a public business entity for reporting purposes under U.S. GAAP, including for Call Report
purposes. An institution that is a public business entity is not
permitted to apply the private company goodwill accounting
alternative discussed in the preceding section when preparing
its Call Report.
For additional information on the definition of a public
­business entity, institutions should refer to ASU 2013-12,
which is available at http://www.fasb.org/jsp/FASB/Page/
SectionPage&cid=1176156316498.
Reporting Certain Government-Guaranteed Mortgage Loans
Upon Foreclosure
In August 2014, the FASB issued Accounting Standards
Update (ASU) No. 2014-14, “Classification of Certain
Government-Guaranteed Mortgage Loans Upon Foreclosure,”
to address diversity in practice for how government-guaranteed mortgage loans are recorded upon foreclosure. The ASU
updates guidance contained 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),
because U.S. GAAP previously did not provide specific guidance on how to categorize or measure foreclosed mortgage
loans that are government guaranteed.
This guidance is applicable to fully and partially governmentguaranteed mortgage loans. Upon foreclosure, the separate
other receivable should be measured based on the amount of
the loan balance (principal and interest) expected to be
recovered from the guarantor. This other receivable should be
reported in “All other assets.” Any interest income earned on
the other receivable would be reported in “Other interest
income.” Other real estate owned would not be recognized by
the institution.
For institutions that are public business entities, as defined
under U.S. GAAP, ASU 2014-14 is effective for fiscal years,
and interim periods within those fiscal years, beginning after
December 15, 2014. For example, institutions with a calendar
year fiscal year that are public business entities must apply
the ASU in their Call Reports beginning March 31, 2015.
However, institutions that are not public business entities
(i.e., that are private companies) are not required to apply
the guidance in ASU 2014-14 until annual periods ending
after December 15, 2015, and interim periods beginning
after December 15, 2015. Thus, institutions with a calendar
year fiscal year that are private companies must apply the
ASU in their December 31, 2015, and subsequent quarterly
Call Reports. Earlier adoption of the guidance in ASU 201414 is permitted if the institution has already adopted the
amendments in ASU No. 2014-04, “Reclassification of
Residential Real Estate Collateralized Consumer Mortgage
Loans Upon Foreclosure.” Entities can elect to apply ASU
2014-14 on either a modified retrospective transition basis or
a prospective transition basis. For additional information,
institutions should refer to ASU 2014-14, which is available
at http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=
1176156316498.
Reclassification of Residential Real Estate Collateralized Consumer
Mortgage Loans Upon Foreclosure
In January 2014, the FASB issued Accounting Standards
Update (ASU) No. 2014-04, “Reclassification of Residential
FDIC Quarterly

Real Estate Collateralized Consumer Mortgage Loans upon
Foreclosure,” to address diversity in practice for when certain
loan receivables should be derecognized and the real estate
collateral recognized. The ASU updated guidance contained
in Accounting Standards Codification 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).
Under prior accounting guidance, all loan receivables were
reclassified to other real estate owned (OREO) when the
institution, as creditor, obtained physical possession of the
property, regardless of whether formal foreclosure proceedings
had taken place. The new ASU clarifies when a creditor is
considered to have received physical possession (resulting
from an in-substance repossession or foreclosure) of residential
real estate collateralizing a consumer mortgage loan. Under
the new guidance, physical possession for these residential real
estate properties is considered to have occurred and a loan
receivable would be reclassified to OREO only upon:
• The institution obtaining legal title upon completion of a
foreclosure even if the borrower has redemption rights that
provide the borrower with a legal right for a period of time
after foreclosure to reclaim the property by paying certain
amounts specified by law, or
• The completion of a deed in lieu of foreclosure or similar
legal agreement under which the borrower conveys all
interest in the residential real estate property to the institution to satisfy the loan.
Loans secured by real estate other than consumer mortgage
loans collateralized by residential real estate should continue
to be reclassified to OREO when the institution has received
physical possession of a borrower’s real estate, regardless of
whether formal foreclosure proceedings take place.
For institutions that are public business entities, as defined
under U.S. generally accepted accounting principles, ASU
2014-04 is effective for fiscal years, and interim periods within
those fiscal years, beginning after December 15, 2014. For
example, institutions with a calendar year fiscal year that are
public business entities must apply the ASU in their Call
Reports beginning March 31, 2015. However, institutions
that are not public business entities are not required to apply
the guidance in ASU 2014-04 until annual periods beginning
after December 15, 2014, and interim periods within annual
periods beginning after December 15, 2015. Thus, institutions
with a calendar year fiscal year that are not public business
entities must apply the ASU in their December 31, 2015, and
subsequent quarterly Call Reports. Earlier adoption of the
guidance in ASU 2014-04 is permitted. Entities can elect to
apply the ASU on either a modified retrospective transition
basis or a prospective transition basis. Applying the ASU on a
prospective transition basis should be less complex for institutions than applying the ASU on a modified retrospective transition basis. Under the prospective transition method, an
institution should apply the new guidance to all instances
where it receives physical possession of residential real estate
property collateralizing consumer mortgage loans that occur
after the date of adoption of the ASU. Under the modified
retrospective transition method, an institution should apply a
cumulative-effect adjustment to residential consumer mortgage
loans and OREO existing as of the beginning of the annual
period for which the ASU is effective. As a result of adopting

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Quarterly Banking Profile
the ASU on a modified retrospective basis, assets reclassified
from OREO to loans should be measured at the carrying value
of the real estate at the date of adoption while assets reclassified from loans to OREO should be measured at the lower of
the net amount of the loan receivable or the OREO property’s
fair value less costs to sell at the time of adoption.
For additional information, institutions should refer to ASU
2014-04, which is available at http://www.fasb.org/jsp/FASB/
Page/SectionPage&cid=1176156316498.
True-Up Liability Under an FDIC Loss-Sharing Agreement
An insured depository institution that acquires a failed
insured institution may enter into a loss-sharing agreement
with the FDIC under which the FDIC agrees to absorb a portion of the losses on a specified pool of the failed institution’s
assets during a specified time period. The acquiring institution
typically records an indemnification asset representing its
right to receive payments from the FDIC for losses during the
specified time period on assets covered under the loss-sharing
agreement.
Since 2009, most loss-sharing agreements have included a
true-up provision that may require the acquiring institution
to reimburse the FDIC if cumulative losses in the acquired
loss-share portfolio are less than the amount of losses claimed
by the institution throughout the loss-sharing period.
Typically, a true-up liability may result because the recovery
period on the loss-share assets (e.g., eight years) is longer
than the period during which the FDIC agrees to reimburse
the acquiring institution for losses on the loss-share portfolio
(e.g., five years).
Consistent with U.S. GAAP and bank guidance for
“Offsetting,” institutions are permitted to offset assets and
­liabilities recognized in the Report of Condition when a
“right of setoff” exists. Under ASC Subtopic 210-20, Balance
Sheet—Offsetting (formerly FASB Interpretation No. 39,
“Offsetting of Amounts Related to Certain Contracts”), in
general, a right of setoff exists when a reporting institution
and another party each owes the other determinable amounts,
the reporting institution has the right to set off the amounts
each party owes and also intends to set off, and the right of
setoff is enforceable at law. Because the conditions for the
existence of a right of offset in ASC Subtopic 210-20 normally would not be met with respect to an indemnification asset
and a true-up liability under a loss-sharing agreement with
the FDIC, this asset and liability should not be netted for
Call Report purposes. Therefore, institutions should report
the indemnification asset gross (i.e., without regard to any
true-up liability) in Other Assets, and any true-up liability in
Other Liabilities.
In addition, an institution should not continue to report
assets covered by loss-sharing agreements after the expiration
of the loss-sharing period even if the terms of the loss-sharing
agreement require reimbursements from the institution to the
FDIC for certain amounts during the recovery period.
Indemnification Assets and Accounting Standards Update No. 201206 – In October 2012, the FASB issued Accounting Standards
Update (ASU) No. 2012-06, “Subsequent Accounting for an
Indemnification Asset Recognized at the Acquisition Date as
a Result of a Government-Assisted Acquisition of a Financial
Institution,” to address the subsequent measurement of an
indemnification asset recognized in an acquisition of a financial institution that includes an FDIC loss-sharing agreement.
FDIC Quarterly

This ASU amends ASC Topic 805, Business Combinations
(formerly FASB Statement No. 141 (revised 2007), “Business
Combinations”), which includes guidance applicable to FDICassisted acquisitions of failed institutions.
Under the ASU, when an institution experiences a change in
the cash flows expected to be collected on an FDIC loss-­
sharing indemnification asset because of a change in the cash
flows expected to be collected on the assets covered by the
loss-sharing agreement, the institution should account for the
change in the measurement of the indemnification asset on
the same basis as the change in the assets subject to indemnification. Any amortization of changes in the value of the
indemnification asset should be limited to the lesser of the
term of the indemnification agreement and the remaining life
of the indemnified assets.
The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2012.
For institutions with a calendar year fiscal year, the ASU takes
effect January 1, 2013. Early adoption of the ASU is permitted.
The ASU’s provisions should be applied prospectively to any
new indemnification assets acquired after the date of adoption
and to indemnification assets existing as of the date of adoption arising from an FDIC-assisted acquisition of a financial
institution. Institutions with indemnification assets arising
from FDIC loss-sharing agreements are expected to adopt ASU
2012-06 for Call Report purposes in accordance with the effective date of this standard. For additional information, refer to
ASU 2012-06, available at http://www.fasb.org/jsp/FASB/
Page/SectionPage&cid=1176156316498.
Goodwill Impairment Testing – In September 2011, the FASB
issued Accounting Standards Update (ASU) No. 2011-08,
“Testing Goodwill for Impairment,” to address concerns about
the cost and complexity of the existing goodwill impairment
test in ASC Topic 350, Intangibles-Goodwill and Other
­(formerly FASB Statement No. 142, “Goodwill and Other
Intangible Assets”). The ASU’s amendments to ASC
Topic 350 are effective for annual and interim goodwill
impairment tests performed for fiscal years beginning after
December 15, 2011 (i.e., for annual or interim tests performed
on or after January 1, 2012, for institutions with a calendar
year fiscal year). Early adoption of the ASU was permitted.
Under ASU 2011-08, an institution has the option of first
assessing qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test described in ASC Topic 350. If, after considering
all relevant events and circumstances, an institution determines it is unlikely (that is, a likelihood of 50 percent or less)
that the fair value of a reporting unit is less than its carrying
amount (including goodwill), then the institution does not
need to perform the two-step goodwill impairment test. If the
institution instead concludes that the opposite is true (that is,
it is likely that the fair value of a reporting unit is less than its
carrying amount), then it is required to perform the first step
and, if necessary, the second step of the two-step goodwill
impairment test. Under ASU 2011-08, an institution may
choose to bypass the qualitative assessment for any reporting
unit in any period and proceed directly to performing the first
step of the two-step goodwill impairment test.
Troubled Debt Restructurings and Current Market Interest Rates –
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
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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 contractual 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.” Consistent with ASC Subtopic 310-10, TDRs
may be aggregated and measured for impairment with other
impaired loans that share common risk characteristics by using
historical statistics, such as average recovery period and
­average amount recovered, along with a composite effective
interest rate. The outcome of such an aggregation approach
must be consistent with the impairment measurement methods prescribed in ASC Subtopic 310-10 and Call Report
instructions for loans that are “individually” considered
impaired instead of the measurement method prescribed in
ASC Subtopic 450-20, Contingencies – Loss Contingencies
(formerly FASB Statement No. 5, “Accounting for Contin­
gencies”) for loans not individually considered impaired that
are collectively evaluated for impairment. When a loan not
previously considered individually impaired is restructured and
determined to be a TDR, absent a partial charge-off, it generally is not appropriate for the impairment estimate on the loan
to decline as a result of the change from the impairment measurement method prescribed in ASC Subtopic 450-20 to the
methods prescribed in ASC Subtopic 310-10.
Troubled Debt Restructurings and Accounting Standards Update
No. 2011-02 – In April 2011, the FASB issued Accounting
Standards Update (ASU) No. 2011-02, “A Creditor’s
Determination of Whether a Restructuring Is a Troubled
Debt Restructuring,” to provide additional guidance to help
creditors determine whether a concession has been granted to
a borrower and whether a borrower is experiencing financial
difficulties. The guidance is also intended to reduce diversity

FDIC Quarterly

in practice in identifying and reporting TDRs. This ASU was
effective for public companies for interim and annual periods
beginning on or after June 15, 2011, and should have been
applied retrospectively to the beginning of the annual period
of adoption for purposes of identifying TDRs. The measurement of impairment for any newly identified TDRs resulting
from retrospective application should have been applied prospectively in the first interim or annual period beginning on
or after June 15, 2011. (For most public institutions, the
ASU takes effect July 1, 2011, but retrospective application
begins as of January 1, 2011.) Nonpublic companies should
apply the new guidance for annual periods ending after
December 15, 2012, including interim periods within those
annual periods. (For most nonpublic institutions, the ASU
took effect January 1, 2012.) Early adoption of the ASU was
permitted for both public and nonpublic entities. Nonpublic
entities that adopt early are subject to a retrospective identi­
fication requirement. For additional information, refer to
ASU 2011-02, available at http://www.fasb.org/jsp/FASB/
Page/SectionPage&cid=1176156316498.
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 – refer
to previously published Quarterly Banking Profile notes:
http://www2.fdic.gov/qbp/2011mar/qbpnot.html.
Other-Than-Temporary Impairment – When the fair value of an
investment in an individual available-for-sale or held-tomaturity security is less than its cost basis, the impairment is
either temporary or other-than-temporary. The amount of the
total other-than-temporary impairment related to credit loss
must be recognized in earnings, but the amount of total
impairment related to other factors must be recognized in
other comprehensive income, net of applicable taxes. To
determine whether the impairment is other-than-temporary,
an institution must apply the applicable accounting guidance
– refer to previously published Quarterly Banking Profile notes:
http://www2.fdic.gov/qbp/2011mar/qbpnot.html.
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 Interpre­
tation No. 46(R) (FAS 167), which change the way entities
account for securitizations and special purpose entities—refer
to previously published Quarterly Banking Profile notes:
https://www2.fdic.gov/qbp/2014dec/qbpnot.html.
Accounting Standards Codification – refer to previously published Quarterly Banking Profile notes: http://www2.fdic.
gov/qbp/2011sep/qbpnot.html.

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.

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Quarterly Banking Profile
Assessment base – effective April 1, 2011, the deposit insurance assessment base has changed to “average consolidated
total assets minus average tangible equity” with an additional
adjustment to the assessment base for banker’s banks and custodial banks, as permitted under Dodd-Frank. Previously the
assessment base was “assessable deposits” and consisted of DIF
deposits (deposits insured by the FDIC Deposit Insurance
Fund) in banks’ domestic offices with certain adjustments.
Assets securitized and sold – total outstanding principal balance
of assets securitized and sold with servicing retained or other
seller-provided credit enhancements.
Capital Purchase Program (CPP) – as announced in October
2008 under the TARP, the Treasury Department purchase of
noncumulative perpetual preferred stock and related warrants
that is treated as Tier 1 capital for regulatory capital purposes
is included in “Total equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued
by publicly-traded banks are reflected as well in “Surplus.”
Warrants to purchase common stock or noncumulative preferred stock of not-publicly-traded bank stock are classified in
a bank’s balance sheet as “Other liabilities.”
Common equity tier 1 capital ratio – ratio of common equity
tier 1 capital to risk-weighted assets. Common equity tier 1
capital includes common stock instruments and related surplus, retained earnings, accumulated other comprehensive
income (AOCI), and limited amounts of common equity tier
1 minority interest, minus applicable regulatory adjustments
and deductions. Items that are fully deducted from common
equity tier 1 capital include goodwill, other intangible assets
(excluding mortgage servicing assets) and certain deferred tax
assets; items that are subject to limits in common equity tier 1
capital include mortgage servicing assets, eligible deferred tax
assets, and certain significant investments.
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.

FDIC Quarterly

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).
The seller is obligated to purchase or sell the variable or
index at the discretion of the buyer of the contract.
Swaps – obligations between two parties to exchange a
series of cash flows at periodic intervals (settlement dates),
for a specified period. The cash flows of a swap are either
fixed, or determined for each settlement date by multiplying the quantity (notional principal) of the underlying
variable or index by specified reference rates or prices.
Except for currency swaps, the notional principal is used
to calculate each payment but is not exchanged.
Derivatives underlying risk exposure – the potential exposure
characterized by the level of banks’ concentration in particular underlying instruments, in general. Exposure can result
from market risk, credit risk, and operational risk, as well as,
interest rate risk.
Domestic deposits to total assets – total domestic office deposits
as a percent of total assets on a consolidated basis.
Earning assets – all loans and other investments that earn
interest or dividend income.
Efficiency ratio – Noninterest expense less amortization of
intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net
operating revenues that are absorbed by overhead expenses,
so that a lower value indicates greater efficiency.
Estimated insured deposits – in general, insured deposits are
total domestic deposits minus estimated uninsured deposits.
Beginning March 31, 2008, for institutions that file Call
Reports, insured deposits are total assessable deposits minus
estimated uninsured deposits. Beginning September 30, 2009,
insured deposits include deposits in accounts of $100,000 to
$250,000 that are covered by a temporary increase in the
FDIC’s standard maximum deposit insurance amount
(SMDIA). The Dodd-Frank Wall Street Reform and
Consumer Protection Act enacted on July 21, 2010, made
permanent the standard maximum deposit insurance amount
(SMDIA) of $250,000. Also, the Dodd-Frank Act amended
the Federal Deposit Insurance Act to include noninterestbearing transaction accounts as a new temporary deposit
insurance account category. All funds held in noninterestbearing transaction accounts were fully insured, without limit,
from December 31, 2010, through December 31, 2012.
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2015, Volume 9, No. 2

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 prior to
March 31, 2012.
Goodwill and other intangibles – intangible assets include
­servicing rights, purchased credit card relationships, and other
identifiable intangible assets. Goodwill is the excess of the
purchase price over the fair market value of the net assets
acquired, less subsequent impairment adjustments. Other
intangible assets are recorded at fair value, less subsequent
quarterly amortization and impairment adjustments.
Loans secured by real estate – includes home equity loans,
junior liens secured by 1-4 family residential properties, and
all other loans secured by real estate.
Loans to individuals – includes outstanding credit card balances
and other secured and unsecured consumer loans.
Long-term assets (5+ years) – loans and debt securities with
remaining maturities or repricing intervals of over five years.
Maximum credit exposure – the maximum contractual credit
exposure remaining under recourse arrangements and other
seller-provided credit enhancements provided by the reporting bank to securitizations.
Mortgage-backed securities – certificates of participation in
pools of residential mortgages and collateralized mortgage
obligations issued or guaranteed by government-sponsored or
private enterprises. Also, see “Securities,” below.
Net charge-offs – total loans and leases charged off (removed
from balance sheet because of uncollectibility), less amounts
recovered on loans and leases previously charged off.
Net interest margin – the difference between interest and dividends earned on interest-bearing assets and interest paid to
depositors and other creditors, expressed as a percentage of
average earning assets. No adjustments are made for interest
income that is tax exempt.
Net loans to total assets – loans and lease financing receivables, net of unearned income, allowance and reserves, as a
percent of total assets on a consolidated basis.
Net operating income – income excluding discretionary 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.
FDIC Quarterly

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 reporters – 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. (TFR filers began filing Call Reports effective
with the quarter ending March 31, 2012.)
Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their
losses) compared to the same period a year earlier.
“Problem” institutions – federal regulators assign a composite
rating to each financial institution, based upon an evaluation
of financial and operational criteria. The rating is based on a
scale of 1 to 5 in ascending order of supervisory concern.
“Problem” institutions are those institutions with financial,
operational, or managerial weaknesses that threaten their
continued financial viability. Depending upon the degree of
risk and supervisory concern, they are rated either a “4” or
“5.” The number and assets of “problem” institutions are
based on FDIC composite ratings. Prior to March 31, 2008,
for institutions whose primary federal regulator was the OTS,
the OTS composite rating was used.
Recourse – an arrangement in which a bank retains, in form
or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally
accepted accounting principles) that exceeds a pro rata share
of the bank’s claim on the asset. If a bank has no claim on an
asset it has sold, then the retention of any credit risk is
recourse.
Reserves for losses – the allowance for loan and lease losses on
a consolidated basis.
Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract.
Excludes restructured loans and leases that are not in compliance with the modified terms.
Retained earnings – net income less cash dividends on common and preferred stock for the reporting period.
Return on assets – bank net income (including gains or losses
on securities and extraordinary items) as a percentage of aver­
age total (consolidated) assets. The basic yardstick of bank
profitability.
Return on equity – bank net income (including gains or losses
on securities and extraordinary items) as a percentage of average total equity capital.

36

2015, Volume 9, No. 2

Quarterly Banking Profile
adjustment of 2.5 basis points and could not have a total base
assessment rate lower than 2.5 basis points. (2) Depository
Institution Debt Adjustment: For institutions that hold longterm unsecured debt issued by another insured depository
institution, a 50 basis point charge is applied to the amount
of such debt held in excess of 3 percent of an institution’s
Tier 1 capital. (3) Brokered Deposit Adjustment: Rates for
small institutions that are not in Risk Category I and for large
institutions that are not well capitalized or do not have a
composite CAMELS rating of 1 or 2 may increase (not to
exceed 10 basis points) if their brokered deposits exceed
10 percent of domestic deposits. After applying all possible
adjustments (excluding the Depository Institution Debt
Adjustment), minimum and maximum total base assessment
rates for each risk category are as follows:

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.
Effective April 1, 2011, risk categories for large institutions
(generally those with at least $10 billion in assets) were eliminated. The following table shows the relationship of risk categories (I, II, III, IV) for small institutions to capital and
supervisory groups as well as the initial base assessment rates
(in basis points) 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 risk-based assessment
capital groups, undercapitalized includes institutions that are
significantly or critically undercapitalized.

Total Base Assessment Rates*
Large and
Risk
Risk
Risk
Risk
Highly
Category Category Category Category Complex
I
II
III
IV
Institutions

Supervisory Group
Capital Category

A

1. Well Capitalized

I
5–9 bps

2. Adequately Capitalized
3. Undercapitalized

B

II
14 bps

II
14 bps

III
23 bps

C
III
23 bps
IV
35 bps

Effective April 1, 2011, the initial base assessment rates are 5
to 35 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 small institutions in Risk
Category I are based on a combination of financial ratios and
CAMELS component ratings (the financial ratios method).
As required by Dodd-Frank, the calculation of risk-based
assessment rates for large institutions no longer relies on longterm debt issuer ratings. Rates for large institutions are based
on CAMELS ratings and certain forward-looking financial
measures combined into two scorecards—one for most large
institutions and another for the remaining very large institutions that are structurally and operationally complex or that
pose unique challenges and risks in case of failure (highly
complex institutions). In general, a highly complex institution is an institution (other than a credit card bank) with
more than $500 billion in total assets that is controlled by a
parent or intermediate parent company with more than
$500 billion in total assets or a processing bank or trust company with total fiduciary assets of $500 billion or more. The
FDIC retains its ability to take additional information into
account to make a limited adjustment to an institution’s total
score (the large bank adjustment), which will be used to
determine an institution’s initial base assessment rate.
Effective April 1, 2011, the three possible adjustments to
an institution’s initial base assessment rate are as follows:
(1) Unsecured Debt Adjustment: An institution’s rate may
decrease by up to 5 basis points for unsecured debt. The unsecured debt adjustment cannot exceed the lesser of 5 basis
points or 50 percent of an institution’s initial base assessment
rate (IBAR). Thus, for example, an institution with an IBAR
of 5 basis points would have a maximum unsecured debt
FDIC Quarterly

Initial base
assessment rate

5–9

14

23

35

5–35

Unsecured debt
adjustment

-4.5–0

-5–0

-5–0

-5–0

-5–0

Brokered deposit
adjustment

—

0–10

0–10

0–10

0–10

Total Base
Assessment rate

2.5–9

9–24

18–33

30–45

2.5–45

* All amounts for all categories are in basis points annually. Total base rates that are
not the minimum or maximum rate will vary between these rates. Total base assessment rates do not include the depository institution debt adjustment.

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.
Special Assessment – On May 22, 2009, the FDIC board
approved a final rule that imposed a 5 basis point special
assessment as of June 30, 2009. The special assessment was
levied on each insured depository institution’s assets minus
its Tier 1 capital as reported in its report of condition as of
June 30, 2009. The special assessment 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 risk-based 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.
For regulatory capital purposes, an institution may assign a
zero-percent risk weight to the amount of its prepaid
deposit assessment asset. As required by the FDIC’s regulation establishing the prepaid deposit insurance assessment
program, this program ended with the final application of
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2015, Volume 9, No. 2

prepaid assessments to the quarterly deposit insurance
assessments payable March 29, 2013. The FDIC issued
refunds of any unused prepaid deposit insurance assessments on June 28, 2013.
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-tomaturity 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.
(TFR filers began filing Call Reports effective with the quarter ending March 31, 2012.)
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.
Small Business Lending Fund – The Small Business Lending
Fund (SBLF) was enacted into law in September 2010 as part
of the Small Business Jobs Act of 2010 to encourage lending
to small businesses by providing capital to qualified
community institutions with assets of less than $10 billion.
The SBLF Program is administered by the U.S. Treasury
Department (http://www.treasury.gov/resource-center/
sb-programs/Pages/Small-Business-Lending-Fund.aspx).
Under the SBLF Program, the Treasury Department
purchased noncumulative perpetual preferred stock from
qualifying depository institutions and holding companies
(other than Subchapter S and mutual institutions). When
this stock has been issued by a depository institution, it is

FDIC Quarterly

reported as “Perpetual preferred stock and related surplus.”
For regulatory capital purposes, this noncumulative perpetual
preferred stock qualifies as a component of Tier 1 capital.
Qualifying Subchapter S corporations and mutual institutions
issue unsecured subordinated debentures to the Treasury
Department through the SBLF. Depository institutions that
issued these debentures report them as “Subordinated notes
and debentures.” For regulatory capital purposes, the
debentures are eligible for inclusion in an institution’s Tier 2
capital in accordance with their primary federal regulator’s
capital standards. To participate in the SBLF Program, an
institution with outstanding securities issued to the Treasury
Department under the Capital Purchase Program (CPP) was
required to refinance or repay in full the CPP securities at the
time of the SBLF funding. Any outstanding warrants that an
institution issued to the Treasury Department under the CPP
remain outstanding after the refinancing of the CPP stock
through the SBLF Program unless the institution chooses to
repurchase them.
Subchapter S corporation – a Subchapter S corporation is treated as a pass-through entity, similar to a partnership, for federal income tax purposes. It is generally not subject to any
federal income taxes at the corporate level. This can have the
effect of reducing institutions’ reported taxes and increasing
their after-tax earnings.
Trust assets – market value, or other reasonably available
value of fiduciary and related assets, to include marketable
securities, and other financial and physical assets. Common
physical assets held in fiduciary accounts include real estate,
equipment, collectibles, and household goods. Such fiduciary
assets are not included in the assets of the financial
institution.
Unearned income & contra accounts – unearned income for Call
Report filers only.
Unused loan commitments – includes credit card lines, home
equity lines, commitments to make loans for construction,
loans secured by commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for
sale, which are accounted for as derivatives on the balance
sheet.)
Yield on earning assets – total interest, dividend, and fee
income earned on loans and investments as a percentage of
average earning assets.

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2015, Volume 9, No. 2