Full text of FDIC Quarterly : First Quarter 2019, Volume 13, Number 2

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Quarterly
Quarterly Banking Profile:
First Quarter 2019
Highlights:
■

Quarterly Net Income Increases 8.7 Percent From
First Quarter 2018 to $60.7 Billion

■

Net Interest Margin Improves to 3.42 Percent
as the Increase in Asset Yield Outpaces the
Rise in Funding Cost

■

Community Bank Net Income Increases
10.1 Percent Year Over Year

■

Insured Deposits Grow by 2.3 Percent

■

DIF Reserve Ratio Is Unchanged at 1.36 Percent

2019
Volume 13, Number 2
Federal Deposit
Insurance Corporation
FDIC QUARTERLY A

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
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and regional level that may affect the risk exposure of FDIC-insured institutions to research
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Chairman
Jelena McWilliams
Director, Division of Insurance and Research
Diane Ellis
Executive Editor
George French
Managing Editors
Rosalind Bennett
Alan Deaton
Patrick Mitchell
Shayna M. Olesiuk
Philip A. Shively
Editors
Clayton Boyce
Kathy Zeidler
Publication Manager
Lynne Montgomery
Media Inquiries
(202) 898-6993

FDIC QUARTERLY

2019

FDIC QUARTERLY

Vo l u m e 1 3 • N u m b e r 2

Quarterly Banking Profile: First Quarter 2019
FDIC-insured institutions reported aggregate net income of $60.7 billion in the first quarter
of 2019, up $4.9 billion (8.7 percent) from a year earlier. The increase in net income was
mainly attributable to a $7.9 billion (6 percent) increase in net interest income. The average
return on assets increased to 1.35 percent, up from 1.28 percent a year earlier. Almost
two-thirds of all institutions reported annual increases in net income and less than 4 percent
of institutions were unprofitable. See page 1.
Community Bank Performance

Community banks—which represent 92 percent of insured institutions—reported net
income of $6.5 billion in the first quarter, up $595 million (10.1 percent) from a year earlier.
The increase was driven by higher net interest income (up $1.1 billion, or 6.4 percent), higher
realized gains on securities (up $111 million, or 207 percent), and lower provision expense
(down $138 million, or 17.3 percent). Lower noninterest income (down $84 million, or
1.9 percent) and higher noninterest expense (up $584 million, or 4 percent) partially offset
improvements to net income. See page 15.

Insurance Fund Indicators

The Deposit Insurance Fund (DIF) balance increased by $2.3 billion during the quarter to
$104.9 billion on March 31, driven by assessment income, interest earned, and unrealized
gains on securities. The DIF’s reserve ratio (the fund balance as a percent of estimated
insured deposits) was 1.36 percent on March 31, 2019, unchanged from December 31, 2018,
and up from 1.30 percent on March 31, 2018. See page 23.

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.

FDIC QUARTERLY

i

QUARTERLY BANKING PROFILE First Quarter 2019
INSURED INSTITUTION PERFORMANCE
Quarterly Net Income Increases 8.7 Percent From First Quarter 2018 to $60.7 Billion
Net Interest Margin Improves to 3.42 Percent as the Increase in Asset Yield Outpaces the Rise in Funding Cost
Loan Balances Drop Slightly From the Previous Quarter but Increase 4.1 Percent From a Year Ago
Noncurrent and Net Charge-Off Rates Remain Stable
The Number of Banks on the FDIC’s “Problem Bank List” Declines to 59
Net Income Increases
8.7 Percent From
First Quarter 2018 to
$60.7 Billion

The aggregate net income for the 5,362 FDIC-insured commercial banks and savings institutions totaled $60.7 billion in first quarter 2019, an increase of $4.9 billion (8.7 percent) from
a year ago. The improvement in net income was led by higher net interest income, which
reflected a modest growth in interest-earning assets and wider net interest margins (NIM).
Almost two out of every three banks (62.3 percent) reported year-over-year increases in net
income, and less than 4 percent of banks reported net losses for the quarter. The average
return on assets rose to 1.35 percent, an improvement from the 1.28 percent a year earlier.

Net Interest Income
Expands 6 Percent
From a Year Ago

Net interest income of $139.3 billion rose by $7.9 billion (6 percent) from 12 months ago, as
more than three out of every four banks (79.2 percent) reported year-over-year increases.
NIM for the banking industry increased by 10 basis points from a year ago to 3.42 percent,
as average asset yields (up 49 basis points) increased by more than average funding costs
(up 39 basis points). The largest institutions (banks with assets greater than $250 billion)
reported the largest annual increase in NIM (up 11 basis points), almost twice the rate of all
other institution size groups.

Loan-Loss Provisions Rise
Almost 12 Percent From
First Quarter 2018

Banks allocated $13.9 billion in loan-loss provisions in the first quarter, an increase of
$1.5 billion (11.8 percent) from a year earlier. Slightly more than one-third of all banks
(35.2 percent) reported annual increases in loan-loss provisions. A large portion of the
annual increase was concentrated among the largest banks.

Chart 1

Chart 2

Quarterly Net Income

Quarterly Net Operating Revenue

All FDIC-Insured Institutions

All FDIC-Insured Institutions
Securities and Other Gains/Losses, Net
Net Operating Income

$ Billions

65

60.7

55

220

204.7

200
180

45

160

35

140

25

120

15

100

5

80
60

-5

40

-15
-25
2009

Quarterly Noninterest Income
Quarterly Net Interest Income

$ Billions

20

2010

Source: FDIC.

2011

2012

2013

2014

2015

2016

2017

2018 2019

0

2009

2010

Source: FDIC.

2011

2012

2013

2014

2015

2016

2017

2018

2019

FDIC QUARTERLY

1

2019 • Volume 1 3 • Numb er 2

Noninterest Income
Declines 2.9 Percent
From a Year Ago

Noninterest income declined by $2 billion (2.9 percent) from a year ago, due to lower servicing fees, which fell by $2.1 billion (58.3 percent), and all other noninterest income, which
declined by $1.1 billion (3.6 percent). Despite the overall decline in noninterest income,
trading revenue rose by $2.5 billion (32.8 percent). Slightly more than half of all banks
(52.6 percent) reported annual declines in noninterest income.

Noninterest Expense
Declines From
First Quarter 2018

Noninterest expense fell by $427.1 million (0.4 percent) from a year earlier. The increase
in salary and employee benefits (up $1.1 billion, or 2 percent) was offset by a decline in all
other noninterest expense (down $1.4 billion, or 3 percent). The average assets per employee
increased from $8.4 million in first quarter 2018 to $8.8 million.

Net Charge-Offs
Increase 5.5 Percent
From 12 Months Ago

During the first quarter, banks charged off $12.7 billion in uncollectable loans, an increase of
$667.9 million (5.5 percent) from first quarter 2018. Credit card balances reported the largest
year-over-year dollar increase in net charge-offs, increasing by $543.4 million (6.6 percent).
The average net charge-off rate remained unchanged from a year ago (0.50 percent). For
eight out of the past ten quarters, the net charge-off rate for credit cards increased, reaching
3.97 percent for the current quarter.

Noncurrent Loan Rate
Remains Below 1 Percent

Noncurrent loan balances (90 days or more past due or in nonaccrual status) increased
by $461.6 million (0.5 percent) from the previous quarter. Less than half of all banks
(41.2 percent) reported increases in noncurrent loan balances. The quarterly increase was
in commercial and industrial loan balances, which rose by $3.3 billion (22.8 percent), the
largest quarterly dollar increase since first quarter 2016. The banking industry continued to
reduce noncurrent loans for residential mortgages, which declined by $2.2 billion (5 percent)
from the previous quarter. The average noncurrent rate remained unchanged from the previous quarter at 0.99 percent.

Chart 3

Chart 4

Noncurrent Loan Rate and Quarterly Net Charge-Off Rate

Reserve Coverage Ratio

All FDIC-Insured Institutions

All FDIC-Insured Institutions
Noncurrent Loan Rate
Quarterly Net Charge-Off Rate

Percent

6

$ Billions

450

5

Loan-Loss Reserves ($)
Coverage Ratio (%)
Noncurrent Loans ($)
Coverage Adjusted for GNMA Guaranteed Loans (%)
Noncurrents Adjusted for GNMA Guaranteed Loans ($)
Coverage Ratio (Percent)

180

400

160

350

140

300

120

3

250

100

200

80

2

150

60

100

40

50

20

4

1
0
2009

2010

Source: FDIC.

2011

2012

2013

2 FDIC QUARTERLY

2014

2015

2016

2017

2018

2019

0
2009

2010

2011 2012

2013

2014

2015

Source: FDIC.
Note: Loan-loss reserves to noncurrent loans and leases.

2016 2017

2018

2019

0

QUARTERLY BANKING PROFILE

Loan-Loss Reserves Increase
From the Previous Quarter

At the end of first quarter, loan-loss reserves increased by $432.3 billion (0.3 percent) from
the previous quarter. Almost two-thirds of all banks (64.9 percent) reported increases in
loan-loss reserves during the quarter. At banks that itemize their loan-loss reserves, which
represent 91 percent of total industry loan-loss reserves, the quarterly growth was attributable to commercial loans (up $761.4 million, or 2.4 percent) and other consumer (up
$308.3 million, or 3.1 percent), which excludes credit cards. For the past 11 consecutive quarters, growth in total itemized loan-loss reserves was attributable to credit cards; however,
credit card losses remained stable during the first quarter, increasing by only $54.2 million
(0.1 percent).

Equity Capital Increases
From the Fourth Quarter

During the three months ended March 31, equity capital of $2.1 trillion rose by $36.9 billion
(1.8 percent). Retained earnings in first quarter 2019 totaled $22.1 billion and dividends paid
rose to $38.6 billion, an increase of $7.9 billion (25.9 percent). Accumulated other comprehensive income increased by $20.6 billion, as the fair value of securities improved. At the end
of first quarter, 99.6 percent of all insured institutions, which account for 99.87 percent of
total industry assets, met or exceeded the requirements for the well-capitalized category, as
defined for Prompt Corrective Action.

Total Assets Increase From
the Previous Quarter

Total assets increased by $147 billion (0.8 percent) during the first quarter. Assets in trading accounts increased by $94.2 billion (16.5 percent), the largest quarterly dollar increase
since first quarter 2008. Securities holdings among the banking industry remained stable
(up $1.3 billion, or .003 percent) from the previous quarter. Mortgage-backed securities
rose by $30.6 billion (1.4 percent), but were offset in part by lower U.S. Treasury securities
(down $11.4 billion, or 2.1 percent) and state and municipal securities (down $7.6 billion, or
2.3 percent).

Chart 5

Chart 6

Unrealized Gains (Losses) on Investment Securities

Quarterly Change in Loan Balances

All FDIC-Insured Institutions

All FDIC-Insured Institutions
Held-to-Maturity Securities
Available-for-Sale Securities

$ Billions

100

300

80

Percent

8
6

200

60

4

100

40
20

2
0

0

0
-5

-20

-5 -2

-4

-100

-6

-200

-40

-300
2009

-60
-80
-100
2009

Quarterly Change (Left Axis)
12-Month Growth Rate (Right Axis)

$ Billions

2010

Source: FDIC.

2011

2012

2013

2014

2015

2016

2017

2018

2019

-8
2010

2011

2012

2013

2014

2015

2016

2017

2018

-10
2019

Source: FDIC.
Note: 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

3

2019 • Volume 1 3 • Numb er 2

Loan Balances Drop Slightly
From the Previous Quarter
but Increase 4.1 Percent
From a Year Ago

Total loan and lease balances fell by $4.8 billion (0.05 percent) compared with the previous
quarter. More than half of all banks (57.5 percent) reported quarterly increases in loan and
lease balances. Commercial and industrial loans increased by $37.7 billion (1.7 percent),
while consumer loans, including credit card balances, fell by $37 billion (2.1 percent). Over
the past 12 months, total loan and lease balances increased by $395 billion (4.1 percent),
a slight decline from the 4.4 percent annual growth rate reported last quarter. All major
loan categories reported year-over-year increases, led by commercial and industrial loans
(up $155.6 billion, or 7.6 percent) and consumer loans, which includes credit card balances
(up $71.3 billion, or 4.4 percent).

Noninterest-Bearing
Deposits Decline 3.2 Percent
From the Previous Quarter

Total deposits rose by $59.5 billion (0.4 percent) from the previous quarter, as interestbearing deposits increased by $172.4 billion (1.8 percent). Noninterest-bearing deposits
declined by $100.4 billion (3.2 percent), the largest quarterly dollar decline since reporting
the Quarterly Banking Profile, and deposits in foreign offices fell by $12.5 billion (1 percent).
Nondeposit liabilities rose by $50.6 billion (2.5 percent) from the previous quarter, with the
increase led by other secured borrowings (up $35.8 billion, or 18.7 percent) and other liabilities (up $28 billion, or 7.3 percent). Federal Home Loan Bank advances fell by $50.3 billion
(8.8 percent) from the previous quarter, the largest quarterly dollar decline since first
quarter 2010.

The Number of Banks on
the FDIC’s “Problem Bank
List” Declines to 59

The FDIC’s “Problem Bank List” declined from 60 at year end to 59 at the end of first
quarter, the lowest since first quarter 2007. Total assets of problem banks declined from
$48.5 billion to $46.7 billion. During the first quarter, one new bank was chartered, 43 institutions were absorbed by mergers, and no banks failed.
Author:
Benjamin Tikvina
Senior Financial Analyst
Division of Insurance and Research

Chart 7
Number and Assets of Banks on the “Problem Bank List”
Number

1,000

Assets of Problem Banks
Number of Problem Banks

Assets ($ Billions)

500

900

450

800

400

700

350

600

300

500

250

400

200

300

150

200

100

100

50

0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: FDIC.

4 FDIC QUARTERLY

0

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

2019**

2018**

2018

2017

2016

2015

2014

1.35
11.93
9.76
0.60
0.50
3.19
3.42
7.79
5,362
4,681
681
3.90
59
$47
0

1.28
11.41
9.66
0.69
0.50
3.34
3.32
28.02
5,607
4,881
726
4.10
92
$56
0

1.35
11.98
9.70
0.60
0.48
3.03
3.40
45.45
5,406
4,715
691
3.37
60
$48
0

0.97
8.60
9.63
0.72
0.50
3.79
3.25
-3.27
5,670
4,918
752
5.61
95
$14
8

1.04
9.27
9.48
0.86
0.47
5.09
3.13
4.43
5,913
5,112
801
4.48
123
$28
5

1.04
9.29
9.59
0.97
0.44
2.66
3.07
7.11
6,182
5,338
844
4.82
183
$47
8

1.01
9.01
9.44
1.20
0.49
5.59
3.14
-0.73
6,509
5,607
902
6.27
291
$87
18

* 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
(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
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
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

1st Quarter
2019

4th Quarter
2018

1st Quarter
2018

%Change
18Q1-19Q1

5,362
2,065,589

5,406
2,067,089

5,607
2,076,952

-4.4
-0.5

$18,089,974
4,902,373
2,122,034
1,457,670
353,863
365,370
2,202,375
1,705,830
859,946
78,531
1,260,625
2,347
10,147,387
125,180
10,022,207
3,724,357
6,556
399,300
3,937,554

$17,942,980
4,887,679
2,119,372
1,445,558
349,877
375,637
2,164,628
1,742,851
903,492
82,339
1,277,064
2,383
10,152,178
124,748
10,027,430
3,723,060
6,692
398,751
3,787,046

$17,531,573
4,795,167
2,072,593
1,402,661
344,126
398,436
2,046,760
1,634,548
820,415
75,612
1,202,566
2,283
9,752,370
123,745
9,628,625
3,598,925
8,131
388,771
3,907,121

3.2
2.2
2.4
3.9
2.8
-8.3
7.6
4.4
4.8
3.9
4.8
2.8
4.1
1.2
4.1
3.5
-19.4
2.7
0.8

18,089,974
13,925,690
12,684,901
1,240,788
1,506,502
68,853
529,428
2,059,501
2,056,019

17,942,980
13,866,197
12,612,872
1,253,325
1,476,249
68,677
509,255
2,022,601
2,019,129

17,531,573
13,528,921
12,256,881
1,272,040
1,471,095
69,852
493,097
1,968,609
1,965,010

3.2
2.9
3.5
-2.5
2.4
-1.4
7.4
4.6
4.6

INCOME DATA

Full Year
2018

64,285
100,731
55,265
2,217,673
16,350,078
521,067
7,988,973
20,144,362
571,792
203,961,454
Full Year
2017

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

$660,985
119,800
541,186
50,028
266,170
459,322
325
61,006
-267
237,058
236,770
47,498
164,731
72,040
237,083

$572,277
73,254
499,023
51,134
255,188
442,874
2,129
97,816
-87
164,428
164,092
46,805
121,413
42,679
162,998

65,402
100,270
55,742
2,187,118
16,255,829
571,406
7,819,732
19,303,597
604,694
178,089,368
1st Quarter
%Change
2019
15.5
63.5
8.5
-2.2
4.3
3.7
-84.7
-37.6
-206.4
44.2
44.3
1.5
35.7
68.8
45.5

$179,354
40,092
139,261
13,874
65,405
115,292
867
15,580
-8
60,779
60,714
12,736
38,631
22,083
60,088

63,132
112,484
58,446
2,113,535
15,883,675
553,988
7,721,880
20,291,989
657,694
206,001,576
1st Quarter
2018

1.8
-10.4
-5.4
4.9
2.9
-5.9
3.5
-0.7
-13.1
-1.0
%Change
18Q1-19Q1

$154,915
23,569
131,346
12,409
67,392
115,719
240
14,909
-8
55,933
55,841
12,068
30,695
25,145
55,746

15.8
70.1
6.0
11.8
-3.0
-0.4
260.6
4.5
-3.8
8.7
8.7
5.5
25.9
-12.2
7.8

* See Notes to Users for explanation.

FDIC QUARTERLY

5

2019 • Volume 1 3 • Numb er 2
TABLE III-A. First Quarter 2019, All FDIC-Insured Institutions
Asset Concentration Groups*
FIRST QUARTER
(The way it is...)
Number of institutions reporting
Commercial banks
Savings institutions
Total assets (in billions)
Commercial banks
Savings institutions
Total deposits (in billions)
Commercial banks
Savings institutions
Bank net income (in millions)
Commercial banks
Savings institutions
Performance Ratios (annualized, %)
Yield on earning assets
Cost of funding earning assets
Net interest margin
Noninterest income to assets
Noninterest expense to assets
Loan and lease loss provision to assets
Net operating income to assets
Pretax return on assets
Return on assets
Return on equity
Net charge-offs to loans and leases
Loan and lease loss provision to
net charge-offs
Efficiency ratio
% of unprofitable institutions
% of institutions with earnings gains
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
Structural Changes
New reporters
Institutions absorbed by mergers
Failed institutions

All Insured
Institutions
5,362
4,681
681
$18,090.0
16,906.6
1,183.4
13,925.7
12,984.7
940.9
60,714
56,704
4,011

Credit
Card
Banks
12
11
1
$663.3
571.0
92.3
394.0
326.1
67.9
5,011
4,134
877

International
Banks
5
5
0
$4,340.2
4,340.2
0.0
3,127.0
3,127.0
0.0
13,067
13,067
0

Agricultural
Banks
1,315
1,303
12
$283.7
278.6
5.1
235.2
232.5
2.7
947
915
32

Commercial
Lenders
2,853
2,565
288
$6,326.3
5,880.2
446.1
4,979.3
4,646.2
333.0
19,212
18,192
1,021

Mortgage
Lenders
395
111
284
$356.1
112.4
243.7
277.3
88.6
188.8
1,063
464
599

Consumer
Lenders
70
50
20
$220.2
113.0
107.2
182.0
91.5
90.5
724
504
220

Other
Specialized
<$1 Billion
235
213
22
$38.8
34.4
4.3
30.9
27.8
3.1
339
164
175

All Other
<$1 Billion
424
380
44
$75.7
66.0
9.7
64.0
56.4
7.6
204
180
24

All Other
>$1 Billion
53
43
10
$5,785.7
5,510.7
275.0
4,636.0
4,388.6
247.3
20,148
19,084
1,064

4.41
0.98
3.42
1.45
2.56
0.31
1.34
1.70
1.35
11.93
0.50

12.65
2.29
10.37
3.59
6.29
3.11
3.04
3.87
3.05
19.98
4.09

3.64
1.01
2.62
1.90
2.47
0.22
1.19
1.54
1.21
12.29
0.55

4.68
0.90
3.78
0.60
2.53
0.08
1.33
1.53
1.34
11.61
0.19

4.50
0.96
3.54
1.02
2.54
0.17
1.22
1.54
1.23
10.21
0.17

3.82
0.91
2.91
1.30
2.57
0.01
1.15
1.55
1.21
10.96
0.02

5.23
0.97
4.26
1.10
2.82
0.59
1.32
1.81
1.33
12.54
0.79

3.66
0.58
3.08
7.79
6.65
0.09
3.40
4.05
3.53
20.91
0.23

4.27
0.66
3.61
0.82
2.89
0.08
1.06
1.24
1.09
8.80
0.08

3.89
0.86
3.04
1.38
2.20
0.23
1.38
1.73
1.39
12.47
0.38

108.94
55.85
3.90
62.76

94.92
47.00
0.00
83.33

106.22
58.25
0.00
20.00

58.47
60.87
2.89
60.46

143.41
59.20
3.58
65.69

119.37
62.82
9.62
51.90

105.87
52.90
1.43
58.57

141.01
62.55
5.53
61.70

180.05
68.93
3.54
60.61

116.16
52.73
3.77
69.81

90.38

93.11

87.88

93.48

90.82

94.64

95.65

92.00

92.99

90.81

1.23
124.27

4.42
287.81

1.32
136.99

1.38
116.62

1.00
124.16

0.63
32.53

1.07
159.25

1.62
116.03

1.23
124.10

1.03
90.61

0.60
11.37
9.76
13.26
13.34
14.69
71.97
55.40
70.12

1.20
15.22
13.41
14.34
14.45
16.44
125.51
74.56
58.50

0.39
9.85
8.76
13.53
13.62
15.03
50.14
36.13
47.97

0.92
11.70
11.32
14.84
14.85
15.93
81.49
67.55
82.90

0.64
12.09
10.19
12.28
12.36
13.60
89.18
70.19
78.41

1.21
11.05
10.84
21.77
21.78
22.54
75.92
59.12
77.57

0.47
10.61
10.86
17.64
17.87
18.89
82.55
68.25
82.66

0.46
17.09
16.50
36.26
36.28
37.10
33.95
27.05
79.66

0.71
12.44
12.47
21.02
21.07
22.13
66.34
56.07
84.52

0.60
11.25
9.36
13.37
13.44
14.85
62.85
50.36
77.19

1
43
0

0
0
0

0
0
0

0
9
0

1
31
0

0
1
0

0
0
0

0
1
0

0
1
0

0
0
0

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

2018
2016
2014

5,607
6,122
6,730

11
14
16

6
5
4

1,355
1,459
1,480

2,935
3,045
3,324

412
502
563

61
60
54

273
336
444

496
635
783

58
66
62

Total assets (in billions)
	
	

2018
2016
2014

$17,531.6
16,293.3
14,909.9

$542.0
540.1
592.3

$4,368.1
4,014.9
3,723.9

$270.7
275.5
244.9

$6,054.3
5,741.8
4,977.3

$353.4
404.6
575.5

$278.1
193.1
164.1

$45.2
60.1
70.2

$85.8
112.5
141.2

$5,533.9
4,950.8
4,420.5

Return on assets (%)
	
	

2018
2016
2014

1.28
0.97
1.01

2.64
2.72
3.48

1.20
0.83
0.77

1.30
1.21
1.11

1.24
0.90
0.95

1.04
0.97
0.84

1.42
1.08
1.02

3.17
2.36
1.85

1.02
0.89
0.82

1.25
0.92
0.94

Net charge-offs to loans & leases (%)
	
	

2018
2016
2014

0.50
0.46
0.52

4.26
3.07
3.03

0.54
0.57
0.72

0.07
0.10
0.07

0.19
0.20
0.27

0.04
0.06
0.24

0.61
0.68
0.72

0.14
0.07
0.11

0.15
0.16
0.17

0.40
0.42
0.34

Noncurrent assets plus
OREO to assets (%)
	
	

2018
2016
2014

0.69
0.96
1.51

1.25
0.88
0.87

0.44
0.69
0.98

0.87
0.75
0.96

0.69
0.99
1.57

1.77
1.84
1.78

0.42
0.90
1.15

0.55
0.62
0.87

0.78
1.10
1.57

0.77
1.10
1.99

Equity capital ratio (%)
	
	

2018
2016
2014

11.21
11.25
11.22

16.03
14.82
14.75

9.89
9.89
9.34

11.20
11.57
11.06

11.88
11.82
11.92

11.27
11.36
11.69

10.05
10.02
9.64

15.71
14.67
13.54

11.58
11.90
11.56

11.06
11.28
11.49

* See Table V-A (page 10) for explanations.

6 FDIC QUARTERLY

QUARTERLY BANKING PROFILE
TABLE III-A. First Quarter 2019, All FDIC-Insured Institutions
Asset Size Distribution
FIRST QUARTER
(The way it is...)
Number of institutions reporting
Commercial banks
Savings institutions
Total assets (in billions)
Commercial banks
Savings institutions
Total deposits (in billions)
Commercial banks
Savings institutions
Bank net income (in millions)
Commercial banks
Savings institutions
Performance Ratios (annualized, %)
Yield on earning assets
Cost of funding earning assets
Net interest margin
Noninterest income to assets
Noninterest expense to assets
Loan and lease loss provision to assets
Net operating income to assets
Pretax return on assets
Return on assets
Return on equity
Net charge-offs to loans and leases
Loan and lease loss provision to
net charge-offs
Efficiency ratio
% of unprofitable institutions
% of institutions with earnings gains
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
Structural Changes
New reporters
Institutions absorbed by mergers
Failed institutions

Geographic Regions*

All Insured
Institutions
5,362
4,681
681
$18,090.0
16,906.6
1,183.4
13,925.7
12,984.7
940.9
60,714
56,704
4,011

Less Than
$100
Million
1,267
1,123
144
$75.5
67.0
8.4
62.7
56.4
6.3
189
165
23

$100
Million to
$1 Billion
3,306
2,905
401
$1,096.4
945.5
150.9
917.3
797.7
119.6
3,344
2,866
477

$1 Billion
to $10
Billion
648
528
120
$1,710.2
1,387.3
322.9
1,381.6
1,133.1
248.5
5,243
4,435
807

$10 Billion
Greater
to $250 Than $250
Billion
Billion
132
9
116
9
16
0
$6,315.1
$8,892.9
5,613.9
8,892.9
701.2
0.0
4,805.8
6,758.4
4,239.1
6,758.4
566.6
0.0
22,553
29,387
19,850
29,387
2,703
0

4.41
0.98
3.42
1.45
2.56
0.31
1.34
1.70
1.35
11.93
0.50

4.52
0.71
3.81
1.32
3.62
0.13
0.98
1.13
1.00
7.31
0.12

4.68
0.86
3.82
1.10
3.14
0.12
1.21
1.43
1.23
10.59
0.09

4.70
0.96
3.74
1.05
2.82
0.18
1.20
1.55
1.24
10.42
0.17

4.97
1.12
3.85
1.42
2.63
0.47
1.43
1.84
1.44
11.79
0.73

108.94
55.85
3.90
62.76

182.20
74.40
9.55
57.38

186.29
67.01
2.15
63.64

140.38
61.97
2.47
67.59

90.38

92.81

93.30

1.23
124.27

1.40
113.26

0.60
11.37
9.76
13.26
13.34
14.69
71.97
55.40
70.12

New
York
652
338
314
$3,362.7
2,947.2
415.5
2,543.6
2,229.2
314.4
9,736
8,844
892

Atlanta
621
568
53
$3,704.5
3,597.6
106.9
2,941.3
2,857.9
83.4
12,838
12,608
230

Chicago
1,156
995
161
$4,125.9
4,026.2
99.7
3,018.3
2,947.3
71.0
13,495
13,137
358

Kansas
City
1,368
1,323
45
$3,678.0
3,634.3
43.7
2,850.3
2,816.5
33.8
11,917
11,790
127

San
Dallas Francisco
1,172
393
1,100
357
72
36
$1,149.4 $2,069.5
1,003.5
1,697.8
146.0
371.7
934.5
1,637.6
818.9
1,315.0
115.6
322.6
3,762
8,966
3,392
6,932
370
2,033

3.91
0.91
2.99
1.60
2.39
0.24
1.31
1.66
1.33
12.62
0.46

4.63
1.20
3.43
1.29
2.54
0.39
1.14
1.46
1.16
9.18
0.61

4.46
0.86
3.60
1.37
2.49
0.37
1.39
1.75
1.39
11.51
0.58

3.69
0.89
2.80
1.91
2.61
0.15
1.31
1.67
1.32
12.79
0.24

4.42
1.03
3.40
1.21
2.42
0.31
1.27
1.60
1.30
12.60
0.52

4.74
0.84
3.90
1.15
2.93
0.18
1.33
1.62
1.33
11.18
0.20

5.12
1.05
4.07
1.56
2.69
0.46
1.73
2.25
1.74
15.64
0.79

104.02
52.60
0.76
68.94

109.72
55.59
0.00
55.56

110.85
57.53
4.14
61.66

110.94
53.73
4.99
65.86

122.38
58.70
4.15
61.85

109.85
55.94
3.65
59.28

131.42
61.21
2.82
64.51

93.53
49.53
5.09
69.21

92.39

91.00

89.18

89.69

89.60

89.44

90.51

91.33

94.02

1.24
150.05

1.09
139.82

1.32
136.36

1.19
107.88

1.28
138.39

1.21
117.74

1.11
115.40

1.29
107.02

1.04
98.68

1.42
197.78

0.95
13.81
13.70
21.91
21.94
23.01
70.43
58.51
83.07

0.74
11.71
11.54
15.84
15.86
16.94
81.24
67.97
83.66

0.65
11.97
10.99
14.16
14.18
15.15
87.40
70.61
80.52

0.63
12.26
10.35
13.10
13.25
14.62
80.45
61.22
73.62

0.55
10.55
8.85
12.79
12.83
14.29
61.54
46.77
63.85

0.57
12.75
10.62
13.70
13.76
15.16
75.47
57.09
70.21

0.64
12.16
9.64
12.91
13.01
14.26
71.80
57.00
77.06

0.54
10.33
9.12
13.03
13.07
14.23
66.94
48.97
64.01

0.68
10.36
9.34
12.75
12.83
14.71
68.38
53.00
61.80

0.79
11.94
10.46
13.33
13.42
14.45
80.40
65.37
81.26

0.46
11.21
10.25
14.51
14.62
15.66
77.54
61.36
78.33

1
43
0

1
6
0

0
27
0

0
8
0

0
2
0

0
0
0

0
7
0

0
6
0

0
8
0

0
10
0

1
9
0

0
3
0

PRIOR FIRST QUARTERS
(The way it was…)
Number of institutions
	
	

2018
2016
2014

5,607
6,122
6,730

1,393
1,663
2,005

3,453
3,734
4,054

629
616
564

123
100
99

9
9
8

684
752
831

656
753
852

1,208
1,325
1,457

1,426
1,528
1,641

1,214
1,299
1,414

419
465
535

Total assets (in billions)
	
	

2018
2016
2014

$17,531.6
16,293.3
14,909.9

$83.2
97.8
118.1

$1,130.2
1,179.8
1,246.8

$1,701.8
1,723.1
1,493.7

$5,827.3
5,013.9
4,651.8

$8,789.1
8,278.7
7,399.5

$3,273.9
3,084.7
2,963.3

$3,604.2
3,417.7
3,032.9

$3,969.6
3,624.0
3,416.9

$3,674.5
3,543.5
3,247.0

$1,102.9
962.2
883.0

$1,906.6
1,661.2
1,366.9

Return on assets (%)
	
	

2018
2016
2014

1.28
0.97
1.01

0.93
0.92
0.80

1.18
1.03
0.90

1.27
1.04
1.01

1.37
1.01
1.17

1.24
0.92
0.92

1.15
0.81
1.02

1.31
0.88
0.88

1.27
0.93
0.80

1.17
1.03
1.14

1.35
1.05
1.08

1.63
1.32
1.42

Net charge-offs to loans & leases (%) 2018
	
2016
	
2014

0.50
0.46
0.52

0.19
0.12
0.19

0.08
0.10
0.18

0.18
0.19
0.25

0.74
0.62
0.77

0.46
0.49
0.49

0.62
0.49
0.75

0.56
0.54
0.47

0.24
0.26
0.38

0.53
0.55
0.61

0.21
0.30
0.21

0.74
0.52
0.50

Noncurrent assets plus
OREO to assets (%)
	
	

2018
2016
2014

0.69
0.96
1.51

1.02
1.22
1.71

0.83
1.10
1.74

0.70
0.93
1.75

0.68
0.81
0.98

0.67
1.04
1.75

0.63
0.77
1.08

0.79
1.13
2.05

0.62
0.93
1.35

0.79
1.15
1.86

0.82
1.10
1.46

0.47
0.56
0.85

Equity capital ratio (%)
	
	

2018
2016
2014

11.21
11.25
11.22

13.10
12.86
11.85

11.24
11.34
10.90

11.77
11.72
11.89

12.19
12.04
12.64

10.43
10.65
10.23

12.36
12.00
12.04

12.04
12.35
12.32

10.37
10.32
9.78

10.04
10.14
10.43

11.48
11.10
10.95

11.51
12.12
12.61

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

FDIC QUARTERLY

7

2019 • Volume 1 3 • Numb er 2
TABLE IV-A. Full Year 2018, All FDIC-Insured Institutions
Asset Concentration Groups*
FULL YEAR
(The way it is...)
Number of institutions reporting
Commercial banks
Savings institutions
Total assets (in billions)
Commercial banks
Savings institutions
Total deposits (in billions)
Commercial banks
Savings institutions
Bank net income (in millions)
Commercial banks
Savings institutions
Performance Ratios (%)
Yield on earning assets
Cost of funding earning assets
Net interest margin
Noninterest income to assets
Noninterest expense to assets
Loan and lease loss provision to assets
Net operating income to assets
Pretax return on assets
Return on assets
Return on equity
Net charge-offs to loans and leases
Loan and lease loss provision to
net charge-offs
Efficiency ratio
% of unprofitable institutions
% of institutions with earnings gains
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
Structural Changes
New reporters
Institutions absorbed by mergers
Failed institutions

All Insured
Institutions
5,406
4,715
691
$17,943.0
16,728.1
1,214.9
13,866.2
12,898.5
967.7
236,770
222,059
14,711

Credit
Card
Banks
12
11
1
$651.7
559.9
91.8
388.4
321.6
66.7
18,830
16,469
2,361

International
Banks
5
5
0
$4,285.8
4,285.8
0.0
3,117.1
3,117.1
0.0
49,542
49,542
0

Agricultural
Banks
1,346
1,333
13
$286.7
281.3
5.5
237.9
234.8
3.2
3,683
3,547
135

Commercial
Lenders
2,866
2,572
294
$6,373.8
5,893.6
480.2
4,999.6
4,639.4
360.2
77,785
73,171
4,614

Mortgage
Lenders
401
109
292
$346.0
103.3
242.7
272.6
84.0
188.6
3,844
1,578
2,266

Consumer
Lenders
69
51
18
$218.3
113.9
104.4
179.5
92.4
87.1
2,990
1,878
1,112

Other
Specialized
<$1 Billion
226
203
23
$36.4
31.9
4.5
28.9
25.8
3.0
1,200
685
514

All Other
<$1 Billion
432
390
42
$76.3
67.2
9.0
64.2
57.1
7.1
849
778
71

All Other
>$1 Billion
49
41
8
$5,667.9
5,391.1
276.8
4,578.1
4,326.3
251.8
78,047
74,410
3,637

4.16
0.75
3.40
1.51
2.61
0.28
1.35
1.69
1.35
11.98
0.48

12.43
1.95
10.48
3.69
6.29
3.38
2.98
3.74
2.96
19.53
3.87

3.32
0.77
2.55
1.91
2.48
0.18
1.17
1.50
1.17
11.78
0.50

4.54
0.71
3.83
0.64
2.56
0.16
1.32
1.49
1.32
11.72
0.15

4.28
0.73
3.55
1.09
2.60
0.15
1.26
1.57
1.26
10.57
0.18

3.64
0.70
2.94
1.26
2.57
0.00
1.12
1.49
1.13
10.01
0.02

5.00
0.75
4.26
1.28
2.98
0.55
1.42
1.87
1.42
13.62
0.76

2.95
0.39
2.56
8.26
6.34
0.08
3.52
3.63
2.95
19.00
1.42

4.21
0.53
3.68
0.88
2.90
0.13
1.13
1.27
1.12
9.30
0.17

3.66
0.64
3.02
1.46
2.28
0.17
1.40
1.76
1.40
12.65
0.37

105.33
56.27
3.37
79.45

109.77
46.36
0.00
91.67

98.77
59.03
0.00
100.00

152.68
60.45
2.30
71.92

120.66
59.55
3.21
83.98

9.56
63.06
6.73
73.82

101.75
54.20
5.80
75.36

18.24
59.65
4.87
76.99

139.86
67.03
3.94
78.01

91.39
53.35
0.00
91.84

90.60

93.55

88.24

93.00

90.94

94.63

97.11

91.69

92.98

90.99

1.23
124.41

4.32
281.31

1.28
137.93

1.40
133.67

0.99
126.15

0.65
31.57

1.05
153.88

1.62
126.82

1.26
125.23

1.04
88.29

0.60
11.25
9.70
13.16
13.24
14.59
72.32
55.88
70.29

1.26
15.29
13.47
13.69
13.79
15.79
132.02
78.68
58.97

0.39
9.88
8.71
13.47
13.56
14.97
51.36
37.35
48.33

0.82
11.34
11.20
14.61
14.62
15.75
81.72
67.81
82.97

0.63
11.94
10.18
12.31
12.39
13.63
89.57
70.26
78.15

1.28
11.08
10.94
22.03
22.04
22.84
74.88
59.00
78.49

0.49
10.51
10.83
17.26
17.49
18.51
84.62
69.58
82.21

0.43
16.70
15.39
35.70
35.72
36.69
34.27
27.16
79.26

0.72
12.34
12.53
21.15
21.18
22.29
67.48
56.82
84.19

0.62
11.04
9.21
13.17
13.24
14.66
61.86
49.96
77.53

8
259
0

0
1
0

0
0
0

0
40
0

0
202
0

1
6
0

0
3
0

7
0
0

0
5
0

0
2
0

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

2017
2015
2013

5,670
6,182
6,812

11
14
16

5
4
4

1,389
1,479
1,532

2,944
3,089
3,378

420
500
588

59
65
55

272
332
405

510
632
772

60
67
62

Total assets (in billions)
	
	

2017
2015
2013

$17,415.4
15,967.7
14,730.8

$562.7
549.1
590.9

$4,196.0
3,774.6
3,700.2

$282.6
277.6
261.6

$6,026.0
5,892.1
4,921.1

$349.2
385.4
486.9

$270.9
187.3
162.5

$46.9
57.5
62.8

$88.8
113.8
137.6

$5,592.2
4,730.3
4,407.1

Return on assets (%)
	
	

2017
2015
2013

0.97
1.04
1.07

1.52
2.84
3.35

0.62
0.87
0.86

1.05
0.96
1.15

1.02
0.95
0.91

0.93
0.83
0.98

1.02
1.04
1.15

2.61
2.69
1.93

0.91
0.91
0.85

1.10
1.12
1.11

Net charge-offs to loans & leases (%)
	
	

2017
2015
2013

0.50
0.44
0.69

3.95
2.79
3.20

0.56
0.59
0.97

0.16
0.10
0.14

0.21
0.20
0.43

0.04
0.13
0.37

0.60
0.62
0.80

0.23
0.20
0.48

0.15
0.20
0.33

0.43
0.41
0.49

Noncurrent assets plus
OREO to assets (%)
	
	

2017
2015
2013

0.72
0.97
1.63

1.25
0.90
0.93

0.48
0.71
1.07

0.77
0.68
0.95

0.70
0.93
1.65

1.70
1.92
2.14

0.36
0.97
1.23

0.59
0.61
0.84

0.81
1.19
1.44

0.82
1.16
2.18

Equity capital ratio (%)
	
	

2017
2015
2013

11.22
11.24
11.15

15.10
14.29
14.73

9.83
10.13
9.27

11.18
11.32
10.97

11.95
11.76
11.79

11.21
11.36
11.62

10.00
10.12
9.51

15.26
15.04
13.50

11.94
11.80
11.34

11.09
11.08
11.52

* See Table V-A (page 10) for explanations.

8 FDIC QUARTERLY

QUARTERLY BANKING PROFILE
TABLE IV-A. Full Year 2018, All FDIC-Insured Institutions
Asset Size Distribution
FULL YEAR
(The way it is...)
Number of institutions reporting
Commercial banks
Savings institutions
Total assets (in billions)
Commercial banks
Savings institutions
Total deposits (in billions)
Commercial banks
Savings institutions
Bank net income (in millions)
Commercial banks
Savings institutions
Performance Ratios (%)
Yield on earning assets
Cost of funding earning assets
Net interest margin
Noninterest income to assets
Noninterest expense to assets
Loan and lease loss provision to assets
Net operating income to assets
Pretax return on assets
Return on assets
Return on equity
Net charge-offs to loans and leases
Loan and lease loss provision to
net charge-offs
Efficiency ratio
% of unprofitable institutions
% of institutions with earnings gains
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
Structural Changes
New reporters
Institutions absorbed by mergers
Failed institutions

Geographic Regions*

All Insured
Institutions
5,406
4,715
691
$17,943.0
16,728.1
1,214.9
13,866.2
12,898.5
967.7
236,770
222,059
14,711

Less Than
$100
Million
1,278
1,133
145
$75.8
67.4
8.5
63.0
56.6
6.3
760
663
96

$100
Million to
$1 Billion
3,353
2,941
412
$1,108.6
954.1
154.5
924.2
802.3
121.9
13,304
11,629
1,675

$1 Billion
to $10
Billion
638
518
120
$1,734.8
1,386.0
348.8
1,389.0
1,121.2
267.9
22,178
18,566
3,612

$10 Billion
Greater
to $250 Than $250
Billion
Billion
128
9
114
9
14
0
$6,202.3
$8,821.4
5,499.2
8,821.4
703.1
0.0
4,737.7
6,752.3
4,166.0
6,752.3
571.7
0.0
87,300
113,229
77,972
113,229
9,328
0

4.16
0.75
3.40
1.51
2.61
0.28
1.35
1.69
1.35
11.98
0.48

4.40
0.57
3.83
1.38
3.63
0.14
1.02
1.15
1.01
7.58
0.18

4.50
0.67
3.83
1.16
3.15
0.14
1.25
1.43
1.23
10.79
0.16

4.49
0.74
3.75
1.14
2.77
0.18
1.33
1.66
1.33
11.31
0.20

4.73
0.86
3.87
1.50
2.70
0.48
1.46
1.85
1.46
11.99
0.70

105.33
56.27
3.37
79.45

125.34
73.58
8.29
69.41

131.28
66.21
2.21
80.73

127.92
59.51
0.31
89.50

90.60

92.49

93.13

1.23
124.41

1.38
112.70

0.60
11.25
9.70
13.16
13.24
14.59
72.32
55.88
70.29

New
York
659
341
318
$3,362.0
2,915.6
446.4
2,544.4
2,205.3
339.1
39,912
35,930
3,982

Atlanta
626
572
54
$3,677.0
3,573.3
103.7
2,934.2
2,852.2
82.0
52,020
51,093
927

Chicago
1,163
999
164
$4,042.6
3,942.9
99.7
2,993.7
2,923.9
69.8
50,105
48,768
1,337

Kansas
City
1,379
1,333
46
$3,670.8
3,627.2
43.5
2,841.7
2,808.2
33.5
45,548
45,105
444

San
Dallas Francisco
1,182
397
1,109
361
73
36
$1,133.1 $2,057.5
994.2
1,674.9
138.9
382.6
922.5
1,629.9
812.4
1,296.4
110.0
333.4
15,428
33,757
13,683
27,481
1,746
6,276

3.65
0.69
2.95
1.64
2.45
0.19
1.29
1.64
1.29
12.32
0.43

4.33
0.92
3.41
1.38
2.56
0.37
1.22
1.51
1.22
9.75
0.59

4.23
0.66
3.57
1.47
2.56
0.30
1.44
1.80
1.44
11.94
0.55

3.44
0.66
2.78
1.89
2.64
0.12
1.27
1.60
1.26
12.14
0.23

4.18
0.80
3.38
1.28
2.52
0.26
1.24
1.57
1.25
12.28
0.50

4.51
0.61
3.89
1.24
2.97
0.17
1.39
1.67
1.40
12.03
0.24

4.92
0.81
4.11
1.68
2.74
0.55
1.74
2.25
1.74
15.33
0.73

110.19
53.14
0.00
94.53

93.75
56.58
0.00
100.00

110.97
56.90
3.64
87.10

93.13
54.39
5.43
84.19

103.46
60.00
3.53
76.35

97.85
56.90
2.39
75.42

108.57
61.09
2.79
78.68

123.06
49.02
4.28
84.63

92.37

91.25

89.45

90.01

89.83

89.59

90.64

91.64

94.27

1.24
155.14

1.08
139.58

1.34
140.01

1.17
105.36

1.28
135.56

1.20
114.08

1.10
115.82

1.27
106.42

1.05
105.09

1.45
213.47

0.97
13.57
13.66
21.66
21.69
22.76
71.37
59.26
83.03

0.73
11.50
11.43
15.67
15.69
16.77
82.25
68.57
83.36

0.64
11.91
10.92
14.09
14.11
15.08
88.57
70.92
79.83

0.62
12.08
10.37
13.03
13.18
14.57
80.10
61.19
73.66

0.57
10.49
8.74
12.64
12.68
14.14
62.16
47.58
64.30

0.58
12.53
10.56
13.56
13.62
15.04
75.29
56.98
70.05

0.65
12.07
9.56
12.88
12.98
14.24
71.89
57.37
77.36

0.54
10.35
9.08
12.94
12.98
14.15
68.06
50.40
64.64

0.68
10.23
9.23
12.59
12.67
14.55
69.03
53.44
61.64

0.76
11.81
10.41
13.29
13.39
14.42
80.98
65.93
81.37

0.44
11.02
10.26
14.37
14.48
15.52
77.07
61.05
78.51

8
259
0

7
74
0

1
153
0

0
31
0

0
1
0

0
0
0

1
38
0

3
37
0

0
44
0

0
58
0

1
56
0

3
26
0

PRIOR FULL YEARS
(The way it was…)
Number of institutions
	
	

2017
2015
2013

5,670
6,182
6,812

1,407
1,688
2,056

3,513
3,792
4,090

627
595
559

114
99
100

9
8
7

693
762
840

668
762
869

1,214
1,337
1,470

1,438
1,543
1,659

1,235
1,307
1,431

422
471
543

Total assets (in billions)
	
	

2017
2015
2013

$17,415.4
15,967.7
14,730.8

$83.7
99.2
119.7

$1,154.2
1,199.9
1,246.1

$1,751.7
1,682.4
1,468.5

$5,699.2
5,163.6
4,821.1

$8,726.7
7,822.6
7,075.3

$3,248.1
3,074.1
2,927.2

$3,601.0
3,372.6
2,998.8

$3,918.0
3,503.7
3,376.9

$3,683.2
3,444.0
3,222.9

$1,090.0
943.1
869.9

$1,875.1
1,630.3
1,335.1

Return on assets (%)
	
	

2017
2015
2013

0.97
1.04
1.07

0.83
0.84
0.70

1.04
1.07
0.91

1.05
1.10
1.16

1.04
1.02
1.06

0.89
1.05
1.08

0.85
0.87
0.87

1.00
1.03
0.98

1.00
0.96
0.95

0.76
1.16
1.24

1.12
1.09
1.09

1.36
1.31
1.55

Net charge-offs to loans & leases (%) 2017
	
2015
	
2013

0.50
0.44
0.69

0.21
0.19
0.35

0.15
0.16
0.36

0.22
0.21
0.41

0.71
0.56
0.90

0.47
0.48
0.68

0.58
0.48
0.92

0.61
0.50
0.66

0.27
0.27
0.49

0.51
0.52
0.87

0.28
0.24
0.32

0.67
0.52
0.57

Noncurrent assets plus
OREO to assets (%)
	
	

2017
2015
2013

0.72
0.97
1.63

1.01
1.25
1.75

0.83
1.12
1.81

0.66
0.93
1.89

0.70
0.75
0.99

0.73
1.09
1.97

0.65
0.75
1.12

0.83
1.15
2.23

0.64
0.94
1.47

0.86
1.19
1.99

0.81
1.04
1.58

0.45
0.53
0.91

Equity capital ratio (%)
	
	

2017
2015
2013

11.22
11.24
11.15

13.01
12.55
11.68

11.29
11.25
10.78

11.82
11.69
11.79

12.13
12.02
12.32

10.47
10.60
10.28

12.34
11.78
12.02

12.06
12.22
12.19

10.42
10.50
9.66

9.99
10.22
10.42

11.49
11.04
10.87

11.58
12.03
12.65

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

FDIC QUARTERLY

9

2019 • Volume 1 3 • Numb er 2
TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Concentration Groups*
March 31, 2019

All Insured
Institutions

Credit
Card International
Banks
Banks

Agricultural
Banks

Commercial
Lenders

Mortgage
Lenders

Consumer
Lenders

Other
Specialized
<$1 Billion

All Other
<$1 Billion

All Other
>$1 Billion

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

0.60
0.39
0.26
0.10
0.64
0.97
0.36
1.34
1.31
1.38
0.30
0.63

0.15
0.00
0.00
0.00
0.00
0.16
0.85
1.45
1.46
1.18
0.63
1.39

0.65
0.20
0.15
0.06
1.08
0.90
0.59
1.02
1.13
0.78
0.29
0.61

0.87
0.59
0.64
0.31
0.43
1.11
1.13
1.18
1.44
1.16
1.65
1.09

0.48
0.34
0.26
0.11
0.52
0.91
0.31
1.29
1.33
1.28
0.24
0.49

0.71
0.57
0.32
0.17
0.48
0.79
0.65
0.92
0.79
0.93
0.65
0.71

0.44
0.52
0.90
0.11
0.35
0.40
0.87
0.77
0.71
0.79
0.21
0.69

1.23
0.94
0.87
0.52
0.84
1.59
0.81
1.74
2.89
1.50
0.61
1.23

1.11
0.79
0.71
0.71
0.91
1.34
1.15
1.50
1.59
1.50
0.76
1.12

0.80
0.59
0.19
0.05
0.70
1.12
0.24
1.61
1.17
1.86
0.23
0.69

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

1.27
0.45
0.59
0.13
2.14
1.96
0.82
1.02
1.47
0.55
0.24
0.99

1.88
0.13
50.24
0.00
0.00
0.57
0.70
1.62
1.68
0.54
0.55
1.54

1.60
0.72
0.71
0.06
3.94
2.02
0.85
0.96
1.26
0.29
0.15
0.96

1.11
0.58
0.89
0.48
0.35
0.81
1.46
0.53
0.76
0.50
1.33
1.18

0.83
0.42
0.54
0.14
1.18
1.43
0.85
0.87
1.27
0.84
0.38
0.80

2.07
0.39
0.50
1.06
0.96
2.41
1.12
0.43
0.65
0.41
0.90
1.95

1.38
1.05
1.10
0.19
1.71
1.38
0.25
0.50
1.38
0.30
0.20
0.67

1.62
0.60
1.51
2.19
1.57
1.70
1.05
1.03
2.14
0.81
0.55
1.40

1.06
0.97
1.15
0.56
0.42
1.07
0.96
0.59
0.95
0.59
0.68
0.99

1.99
0.44
0.70
0.11
3.22
2.55
0.75
0.70
1.24
0.38
0.12
1.14

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

0.03
0.00
0.05
0.01
0.05
0.01
0.27
2.47
3.97
0.90
0.10
0.50

0.07
0.00
0.00
0.00
0.00
0.08
2.35
4.27
4.35
2.58
1.05
4.09

0.03
0.19
0.26
0.00
0.04
0.00
0.20
2.75
3.66
0.67
0.05
0.55

0.11
-0.02
0.08
-0.02
0.03
0.04
0.35
0.58
3.48
0.31
0.27
0.19

0.03
0.00
0.04
0.01
0.05
0.03
0.20
1.22
4.41
0.93
0.10
0.17

-0.02
0.00
-0.01
0.00
-0.22
-0.01
0.26
1.00
1.55
0.96
0.18
0.02

0.03
-0.01
-0.03
-0.01
0.37
-0.01
0.47
1.06
2.84
0.64
0.03
0.79

0.02
0.02
0.02
0.00
0.00
0.02
0.15
1.16
5.20
0.36
0.44
0.23

0.03
-0.04
0.03
0.03
-0.01
0.04
0.07
0.50
1.80
0.48
0.18
0.08

0.01
-0.03
0.04
0.00
0.07
-0.01
0.25
1.83
3.38
0.91
0.11
0.38

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)

$4,902.4
353.9
1,457.7
435.8
365.4
2,122.0
2,202.4
1,705.8
859.9
845.9
1,339.2
10,149.7

$1.0
0.1
0.0
0.0
0.0
0.9
46.5
469.0
446.4
22.6
0.9
517.4

$566.2
16.5
54.6
80.4
43.3
324.3
356.2
274.1
188.5
85.6
393.0
1,589.5

$122.2
7.1
33.6
4.1
2.4
28.6
22.7
6.4
0.5
5.9
42.9
194.3

$2,732.1
268.7
1,078.4
294.8
189.7
851.8
1,041.9
364.0
29.5
334.5
348.4
4,486.4

$190.8
5.2
16.6
4.7
10.5
152.9
5.3
4.4
0.3
4.1
11.5
212.0

$32.3
0.5
2.0
0.2
3.3
26.1
6.5
109.8
20.6
89.3
3.4
152.0

$7.1
0.6
2.4
0.2
0.2
3.3
1.4
1.6
0.3
1.4
0.5
10.7

$33.4
2.2
7.6
0.9
1.2
18.6
3.7
3.3
0.0
3.2
2.6
43.0

$1,217.2
53.0
262.5
50.4
114.8
715.7
718.2
473.1
173.8
299.3
535.9
2,944.4

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

6,556.4
1,685.4
1,944.2
80.4
2,611.9
201.2

0.2
0.0
0.0
0.0
0.2
0.0

437.0
4.2
53.0
0.0
347.8
0.0

298.1
55.1
97.4
9.4
54.8
81.4

4,262.9
1,442.2
1,444.3
69.5
1,198.0
108.9

177.2
42.0
19.1
0.9
109.8
5.1

24.9
4.4
4.0
0.0
16.4
0.0

29.6
7.0
12.8
0.0
9.1
0.6

108.2
17.5
44.0
0.5
42.1
4.1

1,218.4
112.9
269.6
0.1
833.6
1.2

* 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.

10 FDIC QUARTERLY

QUARTERLY BANKING PROFILE
TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Size Distribution

Geographic Regions*

All Insured
Institutions

Less Than
$100
Million

$100
Million to
$1 Billion

$1 Billion
to
$10 Billion

$10 Billion
to $250
Billion

Greater
Than $250
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

0.60
0.39
0.26
0.10
0.64
0.97
0.36
1.34
1.31
1.38
0.30
0.63

1.25
1.00
0.94
1.15
0.58
1.55
1.50
1.70
3.47
1.68
1.13
1.29

0.65
0.50
0.46
0.22
0.53
0.89
0.74
1.32
1.96
1.28
1.06
0.72

0.38
0.39
0.29
0.10
0.39
0.58
0.54
1.23
2.64
0.96
0.57
0.46

0.53
0.28
0.20
0.10
0.55
0.96
0.28
1.28
1.40
1.14
0.17
0.61

0.76
0.49
0.17
0.05
0.78
1.10
0.35
1.43
1.15
1.71
0.29
0.69

0.49
0.39
0.35
0.12
0.55
0.77
0.30
1.11
1.16
1.04
0.14
0.54

0.63
0.28
0.18
0.05
0.65
1.03
0.20
1.91
1.46
2.35
0.31
0.72

0.59
0.34
0.27
0.10
0.74
0.84
0.58
0.88
1.11
0.78
0.32
0.58

0.86
0.61
0.23
0.12
0.74
1.33
0.28
1.24
1.19
1.32
0.36
0.69

0.78
0.37
0.33
0.11
0.43
1.79
0.45
0.83
0.69
0.89
0.30
0.69

0.26
0.36
0.16
0.08
0.40
0.35
0.43
1.44
1.66
1.25
0.29
0.58

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

1.27
0.45
0.59
0.13
2.14
1.96
0.82
1.02
1.47
0.55
0.24
0.99

1.19
0.59
1.37
0.63
0.53
1.17
1.75
0.79
2.08
0.77
1.21
1.23

0.80
0.74
0.73
0.31
0.48
0.84
1.00
0.66
1.86
0.59
1.01
0.83

0.71
0.49
0.59
0.15
0.61
1.04
1.21
0.86
2.93
0.44
0.50
0.78

1.07
0.32
0.47
0.13
1.16
1.87
0.86
1.20
1.61
0.69
0.29
0.97

1.97
0.42
0.68
0.08
3.55
2.55
0.69
0.83
1.24
0.42
0.14
1.10

1.06
0.59
0.63
0.14
2.03
1.68
0.83
1.07
1.38
0.60
0.19
0.93

1.45
0.48
0.59
0.25
2.44
2.09
0.60
1.22
1.54
0.91
0.18
1.03

1.42
0.60
0.69
0.12
2.11
1.97
0.74
0.55
1.21
0.26
0.18
0.96

1.83
0.33
0.63
0.12
2.93
2.78
0.86
1.00
1.32
0.46
0.33
1.21

1.18
0.35
0.60
0.22
1.02
2.56
1.00
0.82
1.34
0.61
0.40
1.05

0.39
0.26
0.36
0.05
0.53
0.46
1.25
1.09
1.87
0.39
0.31
0.72

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

0.03
0.00
0.05
0.01
0.05
0.01
0.27
2.47
3.97
0.90
0.10
0.50

0.05
-0.05
0.04
0.03
0.24
0.03
0.32
0.59
10.80
0.46
0.07
0.12

0.01
0.01
0.02
0.00
0.02
0.02
0.23
1.05
5.76
0.75
0.18
0.09

0.03
-0.01
0.06
0.01
0.02
0.02
0.22
1.92
7.45
0.80
0.13
0.17

0.04
0.00
0.05
0.01
0.03
0.03
0.34
2.79
4.22
1.00
0.07
0.73

0.01
0.02
0.07
0.00
0.08
-0.01
0.21
2.20
3.53
0.83
0.11
0.46

0.03
0.00
0.05
0.02
0.06
0.02
0.30
2.67
3.64
1.20
0.12
0.61

0.04
-0.01
0.05
0.04
0.08
0.02
0.26
2.50
4.08
0.90
0.11
0.58

0.01
0.08
0.03
0.00
0.04
0.00
0.22
1.51
3.67
0.55
0.05
0.24

0.02
-0.04
0.09
-0.01
0.01
0.00
0.22
2.79
3.80
1.04
0.09
0.52

0.04
0.00
0.07
0.01
0.10
0.01
0.19
1.40
2.68
0.84
0.24
0.20

0.01
-0.03
0.03
0.00
-0.03
-0.01
0.45
2.80
4.85
0.90
0.13
0.79

$4,902.4
353.9
1,457.7
435.8
365.4
2,122.0
2,202.4
1,705.8
859.9
845.9
1,339.2

$30.9
1.8
7.3
0.8
0.7
14.2
5.2
2.8
0.0
2.7
5.9

$583.4
55.6
221.5
31.8
21.2
201.5
94.5
30.3
1.8
28.5
46.6

$896.6
87.5
368.1
100.7
40.1
275.4
192.5
68.0
11.3
56.8
64.1

$1,768.5
142.4
574.8
180.1
137.5
714.8
853.3
877.1
481.8
395.4
420.0

$1,623.0
66.5
286.0
122.4
165.8
916.0
1,056.8
727.6
365.1
362.5
802.5

$1,013.8
67.1
335.3
154.8
74.4
377.5
349.1
376.1
224.8
151.3
206.1

$917.8
59.1
285.4
43.1
90.1
425.0
532.8
408.6
202.0
206.5
278.6

$1,003.7
58.9
222.2
111.5
90.2
496.5
486.9
232.0
70.3
161.7
320.8

$857.9
50.8
196.6
37.9
63.4
417.2
442.5
307.5
193.8
113.6
367.5

$487.3
76.9
204.0
22.0
20.2
145.5
151.4
66.1
19.6
46.5
54.8

$621.9
41.1
214.2
66.7
27.1
260.2
239.6
315.6
149.3
166.2
111.4

10,149.7

44.8

754.8

1,221.2

3,919.0

4,209.9

1,945.1

2,137.7

2,043.4

1,975.4

759.5

1,288.5

6,556.4
1,685.4
1,944.2
80.4
2,611.9
201.2

166.7
36.2
49.1
5.0
51.0
25.4

1,842.2
767.7
600.7
44.9
342.8
86.2

1,438.0
480.1
541.3
24.6
324.7
67.2

1,652.0
306.9
458.8
2.3
862.5
21.4

1,457.5
94.5
294.4
3.6
1,031.0
1.0

1,204.2
219.9
325.4
16.4
629.9
12.6

1,493.5
455.5
439.0
20.5
567.4
11.2

1,225.9
208.3
357.4
13.4
624.3
21.5

1,159.1
289.2
306.4
17.3
429.4
84.9

1,118.1
394.0
436.0
8.6
233.9
45.7

355.5
118.5
80.1
4.3
127.1
25.3

March 31, 2019

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)
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

* 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

2019 • Volume 1 3 • Numb er 2
Table VI-A. Derivatives, All FDIC-Insured Call Report Filers
Asset Size Distribution
%
1st Change
Quarter
18Q12018
19Q1

Less
Than
$100
Million

$100
Million
to $1
Billion

$1
Billion
to $10
Billion

$10
Billion
to $250
Billion

Greater
Than
$250
Billion

1st
Quarter
2019

4th
Quarter
2018

3rd
Quarter
2018

2nd
Quarter
2018

1,320
$16,498,250
12,647,141
203,961,454

1,312
$16,297,135
12,556,278
178,089,368

1,347
$16,058,176
12,291,565
209,769,422

1,362
$15,950,535
12,206,863
209,843,315

1,361
$15,950,194
12,264,978
206,001,576

-3.0
3.4
3.1
-1.0

Derivative Contracts by Underlying Risk Exposure
Interest rate
149,193,412
Foreign exchange*
45,570,276
Equity
3,675,244
Commodity & other (excluding credit derivatives)
1,377,390
Credit
4,144,928
Total
203,961,250

128,175,106
40,948,207
3,374,363
1,314,571
4,276,958
178,089,205

156,781,236
43,473,496
3,644,559
1,525,680
4,341,695
209,766,666

157,435,172
43,279,998
3,420,624
1,525,765
4,178,619
209,840,178

155,478,401
41,064,224
3,466,899
1,646,020
4,345,494
206,001,038

-4.0
11.0
6.0
-16.3
-4.6
-1.0

153
0
0
0
0
153

21,519
1
0
0
6
21,526

129,002 47,530,700 101,512,038
4,629 9,463,612 36,102,034
181
159,017
3,516,046
22
95,207
1,282,161
1,439
333,802
3,809,681
135,273 57,582,338 146,221,959

Derivative Contracts by Transaction Type
Swaps
Futures & forwards
Purchased options
Written options
Total

106,836,871
46,165,413
21,850,850
22,283,403
197,136,537

97,923,416
36,143,829
18,707,980
19,300,817
172,076,043

104,801,209
47,051,282
25,031,776
25,769,336
202,653,603

107,973,543 105,355,960
46,023,905
45,250,891
23,883,350
23,840,759
25,142,041
24,973,515
203,022,839 199,421,126

1.4
2.0
-8.3
-10.8
-1.1

16
16
1
2
34

7,581
2,099
304
1,867
11,851

85,888 27,803,955 78,939,431
23,571 12,508,844 33,630,884
10,794 8,002,559 13,837,191
13,087 8,459,676 13,808,771
133,341 56,775,035 140,216,277

53,804
10,800
-272
-778
16,412
-18,387

47,241
11,282
6,407
-1,873
6,606
-6,765

53,594
25,827
1,975
2,948
26,237
-26,912

49,617
23,843
5,003
1,181
23,965
-24,348

51,495
27,846
6,582
-867
33,701
-34,976

4.5
-61.2
N/M
N/M
-51.3
N/M

0
0
0
0
0
0

72
0
0
0
0
0

87,928,542
38,988,258
24,263,017
32,626,686
4,364,397
2,181,911
2,714,590
957,790
143,076

71,493,447
36,682,682
23,246,059
28,891,823
4,218,682
2,095,962
2,448,707
863,793
139,158

93,168,889
42,735,097
24,228,390
29,674,897
4,928,405
2,470,383
2,825,222
963,096
135,954

91,960,389
42,279,251
24,373,859
31,341,537
4,906,415
2,472,893
2,679,109
867,817
123,737

95,441,266
40,334,591
23,687,654
29,696,500
5,021,957
2,630,013
2,747,190
843,259
139,432

-7.9
-3.3
2.4
9.9
-13.1
-17.0
-1.2
13.6
2.6

40
16
10
0
0
0
0
0
0

4,776
2,606
8,168
5
0
0
0
0
0

1,754,417
2,847,005
528,263

1,745,343
3,105,744
298,075

1,896,551
3,017,006
537,194

1,994,605
3,019,612
309,072

2,314,371
2,862,714
527,870

-24.2
-0.5
0.1

0
0
0

5
6
41

36
408
530

64,842
211,865
40,864

1,689,533
2,634,726
486,829

22.0
37.6

22.7
36.0

23.9
40.9

24.5
39.5

24.8
41.8

0.0
0.1

0.6
0.4

1.0
0.9

12.7
19.0

33.9
60.2

59.5

58.7

64.8

64.0

66.6

0.1

1.0

1.9

31.6

94.1

9.1

11.7

11.6

2.8

-1.1

N/M

0.0

0.0

-0.5

8.5

1.0

187
12,931,741
9,864,375

193
12,768,696
9,799,266

197
12,612,012
9,613,504

197
12,484,349
9,518,156

199
12,578,398
9,638,443

-6.0
2.8
2.3

1
46
32

24
12,198
10,152

87
294,921
236,197

67
4,033,137
3,116,605

8
8,591,439
6,501,389

Derivative Contracts by Underlying Risk Exposure
Interest rate
147,070,096 126,215,235 154,523,852 155,241,947 153,262,676
Foreign exchange
42,441,495
38,768,802
40,241,704
40,144,539 38,353,254
Equity
3,659,003
3,359,405
3,628,434
3,402,588
3,450,109
Commodity & other
1,347,235
1,285,123
1,496,650
1,496,752
1,617,648
Total
194,517,829 169,628,565 199,890,639 200,285,826 196,683,687

-4.0
10.7
6.1
-16.7
-1.1

14
0
0
0
14

484
0
0
0
484

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

76.2
-21.1
78.3
-8.4
30.7

0
0
0
0
0

0
0
0
0
0

10
6
4
0
19

1,038
328
-44
-429
893

3,032
1,922
2,935
1,237
9,126

0.0
0.0

0.0
0.0

0.5
2.2

1.8
7.5

8.3
32.3

(dollar figures in millions;
notional amounts unless otherwise indicated)
ALL DERIVATIVE HOLDERS
Number of institutions reporting derivatives
Total assets of institutions reporting derivatives
Total deposits of institutions reporting derivatives
Total derivatives

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 (%)
Credit losses on derivatives****
HELD FOR TRADING
Number of institutions reporting derivatives
Total assets of institutions reporting derivatives
Total deposits of institutions reporting derivatives

38
723
426
124
9
$2,739 $320,995 $1,272,509 $6,009,118 $8,892,889
2,278
266,841 1,025,005 4,594,615
6,758,403
157
21,702
135,298 57,582,338 146,221,959

420
15
2
0
0
-2

8,542
2,556
238
-126
830
-1,129

44,769
8,228
-512
-652
15,582
-17,256

24,101 23,283,999
34,347 9,089,869
53,819
7,071,360
2,905
7,161,624
880
849,223
21
619,257
47
67,881
45
50,928
2
10,075

64,615,626
29,861,421
17,129,659
25,462,151
3,514,294
1,562,633
2,646,661
906,818
132,999

39,250 46,902,570 100,127,778
3,908 8,959,566 33,478,022
22
148,281
3,510,700
2
66,611
1,280,622
43,182 56,077,027 138,397,121

4,080
2,256
2,895
808
10,038

2,306
2,105
-43
-202
4,166

1,998
3,130
1,444
487
7,059

587
4,569
1,727
501
7,385

2,316
2,860
1,624
882
7,683

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

6.2
24.4

2.6
10.5

4.5
16.8

4.8
17.8

5.2
20.1

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

724
16,007,564
12,251,430

735
15,816,804
12,173,050

750
15,575,002
11,903,875

759
15,481,315
11,829,384

758
15,475,623
11,881,099

-4.5
3.4
3.1

6
516
448

202
99,930
83,267

389
1,196,995
964,198

118
5,817,234
4,445,115

9
8,892,889
6,758,403

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

2,113,172
459,140
16,241
30,155
2,618,708

1,950,815
452,256
14,959
29,448
2,447,477

2,249,741
468,068
16,125
29,030
2,762,964

2,184,847
505,117
18,036
29,012
2,737,012

2,206,558
485,719
16,790
28,371
2,737,439

-4.2
-5.5
-3.3
6.3
-4.3

20
0
0
0
20

11,366
1
0
0
11,367

89,396
584
158
21
90,159

628,131
30,546
10,736
28,596
698,008

1,384,260
428,010
5,346
1,539
1,819,155

All line items are reported on a quarterly basis.
N/M - Not Meaningful
* Includes 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.
** Does not include banks filing the FFIEC 051 report form, which was introduced in first quarter 2017.
*** Derivative contracts subject to the risk-based capital requirements for derivatives.
**** Credit losses on derivatives is applicable to all banks filing the FFIEC 031 report form and banks filing the FFIEC 041 report form that have $300 million or more in total assets, but is
not applicaable to banks filing the FFIEC 051 form.

12 FDIC QUARTERLY

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
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
Maximum Credit Exposure by Asset Type
1-4 family residential loans
Home equity loans
Credit card receivables
Auto loans
Other consumer loans
Commercial and industrial loans
All other loans, leases, and other assets
Total credit exposure
Total unused liquidity commitments provided to institution’s own
securitizations
Securitized Loans, Leases, and Other Assets 30-89 Days Past Due (%)
1-4 family residential loans
Home equity loans
Credit card receivables
Auto loans
Other consumer loans
Commercial and industrial loans
All other loans, leases, and other assets
Total loans, leases, and other assets
Securitized Loans, Leases, and Other Assets 90 Days or More Past Due (%)
1-4 family residential loans
Home equity loans
Credit card receivables
Auto loans
Other consumer loans
Commercial and industrial loans
All other loans, leases, and other assets
Total loans, leases, and other assets
Securitized Loans, Leases, and Other Assets Charged-off
(net, YTD, annualized, %)
1-4 family residential loans
Home equity loans
Credit card receivables
Auto loans
Other consumer loans
Commercial and industrial loans
All other loans, leases, and other assets
Total loans, leases, and other assets
Seller’s Interests in Institution's Own Securitizations – Carried as Loans
Home equity loans
Credit card receivables
Commercial and industrial loans
Seller’s Interests in Institution's Own Securitizations – Carried as Securities
Home equity loans
Credit card receivables
Commercial and industrial loans
Assets Sold with Recourse and Not Securitized
Number of institutions reporting asset sales
Outstanding Principal Balance by Asset Type
1-4 family residential loans
All other loans, leases, and other assets
Total sold and not securitized

1st
Quarter
2019

4th
Quarter
2018

3rd
Quarter
2018

2nd
Quarter
2018

65

64

64

64

%
Less
1st Change
Than
Quarter
18Q1$100
2018
19Q1 Million

$100
Million
to $1
Billion

$1
Billion
to $10
Billion

$10
Billion
to $250
Billion

Greater
Than
$250
Billion

33

7

65

0.0

0

5

20

$486,472 $520,030 $542,310 $560,132 $571,205
13
14
15
16
18
0
22
24
26
4,781
3,062
3,710
4,415
4,647
8,221
1,668
1,738
1,806
1,887
2,914
550
453
360
271
381
72,857
71,416
68,646
67,948
62,410
512,764 543,560 562,500 581,566 649,931

-14.8
-27.8
-100.0
-62.8
-42.8
44.4
16.7
-21.1

$0
0
0
0
0
0
0
0

$959
0
0
0
0
0
10
0

$17,621
0
0
0
0
0
9,933
0

$85,100 $382,792
13
0
0
0
3,062
0
727
940
0
550
3,030
59,885
68,597 444,167

1,050
0
0
94
89
0
1,257
2,205

1,102
0
0
104
86
0
1,208
2,221

1,228
0
0
114
85
0
1,112
2,301

1,327
0
0
125
82
0
1,266
2,565

1,527
0
392
164
88
0
1,194
3,365

-31.2
0.0
-100.0
-42.7
1.1
0.0
5.3
-34.5

0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0

55
0
0
0
0
0
167
0

783
0
0
94
0
0
30
843

213
0
0
0
89
0
1,060
1,362

230

213

226

144

143

60.8

0

0

0

34

196

3.5
5.7
0.0
2.0
4.2
0.0
0.2
3.2

3.6
8.0
0.0
2.6
4.2
0.0
0.2
3.3

3.9
8.9
0.0
1.9
4.5
0.0
0.2
3.6

3.5
8.4
0.0
1.8
4.7
0.0
0.3
3.2

3.2
9.5
0.3
1.6
4.5
0.0
0.3
2.9

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

2.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0

2.0
0.0
0.0
0.0
0.0
0.0
0.4
0.0

2.6
5.7
0.0
2.0
2.5
0.0
1.1
2.2

3.8
0.0
0.0
0.0
5.5
0.0
0.1
3.3

1.1
39.4
0.0
0.5
4.1
0.0
0.3
1.0

1.1
39.0
0.0
0.5
4.3
0.0
0.5
1.0

1.1
40.2
0.0
0.4
4.3
0.0
0.6
1.0

1.2
42.6
0.0
0.4
6.0
0.0
0.7
1.2

1.4
44.1
0.2
0.3
4.3
0.0
1.2
1.4

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

1.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.9
0.0
0.0
0.0
0.0
0.0
1.3
0.0

1.1
39.4
0.0
0.5
1.9
0.0
0.2
0.7

1.1
0.0
0.0
0.0
5.8
0.0
0.2
1.0

0.0
0.9
0.0
0.3
0.2
0.0
0.1
0.1

0.1
18.2
9.1
1.4
1.0
0.0
1.1
0.2

0.0
13.9
4.2
1.0
0.8
0.0
0.4
0.1

-0.1
11.4
3.8
0.6
0.6
0.0
0.3
0.0

-0.1
4.9
0.3
0.4
0.3
0.0
0.0
-0.1

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
0.0
0.0
0.0
0.1
0.0

0.0
0.9
0.0
0.3
0.2
0.0
0.1
0.0

0.1
0.0
0.0
0.0
0.2
0.0
0.1
0.1

0
0
623

0
0
427

0
0
361

0
0
306

0
1,730
426

0.0
-100.0
46.2

0
0
0

0
0
0

0
0
0

0
0
0

0
0
623

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

444

470

476

474

463

-4.1

11

163

203

59

8

25,584
118,912
144,496

26,298
116,464
142,763

25,828
112,296
138,124

24,727
109,138
133,865

24,532
106,242
130,775

4.3
11.9
10.5

126
0
126

4,408
23
4,431

12,308
187
12,494

7,071
39,125
46,196

1,671
79,578
81,249

Maximum Credit Exposure by Asset Type
1-4 family residential loans
All other loans, leases, and other assets
Total credit exposure

7,378
33,558
40,936

7,677
32,793
40,470

7,943
31,286
39,229

7,632
30,545
38,178

7,987
29,602
37,589

-7.6
13.4
8.9

5
0
5

453
21
474

3,546
43
3,590

2,641
11,385
14,026

732
22,109
22,842

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

0
22,527
492

0
23,013
604

0
24,792
1,313

0
26,570
1,031

0
29,676
1,148

0.0
-24.1
-57.1

0
0
0

0
0
0

0
0
0

0
1,367
295

0
21,160
197

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 (%)***

6,127,486 6,060,935 5,984,007 5,919,134 6,034,954

1.5

4,257

152,692

17,150

17,366

16,898

16,069

15,554

10.3

0

0

293,819 1,587,554 4,089,164
0

0

17,150

29,998
1,525
79
3.51

31,491
1,508
65
3.55

30,447
2,739
64
3.60

30,593
2,812
-49
3.70

29,497
3,655
151
4.30

1.7
-58.3
-47.7

0
8
0
0.00

0
215
1
0.00

0
132
14
0.00

1,459
764
4
2.32

28,539
405
59
5.96

* Does not include banks filing the FFIEC 051 report form, which was introduced in first quarter 2017.
** 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

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
as such in the current quarter, adjusted for mergers. In contrast, prior-quarter performance ratios are based on community
banks designated during the previous quarter.
Community Bank Net Income Increases 10.1 Percent Year Over Year
Higher Net Interest Income Lifts Net Operating Revenue
Annual Loan and Lease Growth Remains Strong
Quarterly Net Charge-Off Rate Lowest Since First Quarter 2006
Most Community Banks
Report Higher Earnings
Year Over Year

First quarter 2019 net income of $6.5 billion increased $595.1 million (10.1 percent) from
first quarter 2018. Higher net interest income, higher realized gains on securities, and lower
provision expense drove the year-over-year increase in quarterly earnings. Lower noninterest
income and higher noninterest expense partially offset the improvements. Most community banks (62 percent) reported net income growth year over year, and pretax return on
assets rose 7 basis points to 1.40 percent. Only 3.9 percent of community banks reported net
losses for the quarter, the lowest share of community banks reporting first quarter net losses
since first quarter 1997. The number of community banks totaled 4,930, reflecting one new
community bank and no community bank failures during the quarter.

Net Interest Income Rises,
While Net Interest Margin
Growth Slows

Higher net interest income overcame lower noninterest income to deliver a year-over-year
increase in net operating revenue. Net interest income increased $1.1 billion (6.4 percent)
to $19.2 billion as nearly four in five community banks (79 percent) reported an annual
increase. Broad-based improvements in loan interest income drove the annual increase.
Each major loan interest income category—1–4 family real estate, non 1–4 family real estate,
agricultural production, commercial and industrial (C&I), and consumer—registered yearover-year growth of 10 percent or more.1
1 Non

loans.

1–4 family real estate loans include construction and development, farmland, multifamily, and nonfarm nonresidential

Chart 1

Chart 2

Contributors to the Year-Over-Year Change in Income

Net Interest Margin

FDIC-Insured Community Banks
$ Billions
1.5

Positive Factor
$0.60

$1.15

-$0.14

-$0.08

$0.58

Negative Factor

$0.11

Community Banks (3.67)
Industry (3.42)

Percent
4.25

$0.13
4.00

1.0

3.75
0.5

3.50
3.25

0.0

-0.5

+10%

+6%

Net
Income

Net
Interest
Income

Source: FDIC.

-17%

-2%

+4%

Loan Loss Noninterest Noninterest
Provisions
Income
Expense

+207%

+11%

Realized
Gains on
Securities

Income
Taxes

3.00
2.75
2009

2010

Source: FDIC.

2011

2012

2013

2014

2015

2016

2017

2018

2019

FDIC QUARTERLY 15

2019 • Volume 1 3 • Numb er 2

Total earning assets grew $102.4 billion (5.1 percent) year over year, and the average net
interest margin improved 3 basis points to 3.67 percent. The annual increase in net interest
margin was smaller than reported in each of the prior six quarters, including a 10 basis point
increase in first quarter 2018, as funding costs increased faster than asset yields. The increase
in funding costs is partially attributable to a shift from noninterest-bearing deposits to interest-bearing deposits, as interest-bearing deposits now constitute 78.9 percent of community
bank domestic deposits. Community bank deposits are also repricing at a faster pace than a
year ago. The average annualized cost of deposits increased 39 basis points year over year in
first quarter 2019, up from a year-over-year increase of 14 basis points in first quarter 2018.
More Than Half of
Community Banks Report
Lower Noninterest Income

More than half of community banks (53 percent) reported a decrease in noninterest income
compared with the same quarter last year. Noninterest income totaled $4.3 billion, a
decline of $83.8 million (1.9 percent). A reduction in servicing fees (down $53.1 million, or
24.8 percent) and net gains on loan sales (down $20.7 million, or 3 percent) contributed most
to the decline. Noninterest income as a share of assets fell 7 basis points to 0.76 percent.

Efficiency Ratio Improves
Even as Noninterest Expense
Increases

Noninterest expense of $15.1 billion was $584.4 million (4 percent) higher than a year
earlier. Nearly three out of four (73 percent) community banks reported noninterest expense
growth. Salary and employee benefits expense were $409.5 million (4.9 percent) higher than
a year earlier, as the total number of full-time employees rose by 4,369 (1.1 percent). The
growth in noninterest expense was aligned with growth in revenue and assets. The community bank efficiency ratio improved 80 basis points to 64 percent, and average assets per
employee increased 3.9 percent to $5.6 million.

Community Bank Loan and
Lease Growth Rate Outpaces
Noncommunity Bank Rate

Both quarter-over-quarter and year-over-year community bank loan and lease growth
rates outpaced the rate of loan and lease growth at noncommunity banks. Loan and lease
balances increased $14.8 billion (0.9 percent) during the quarter to $1.6 trillion. More than
half (58 percent) of community banks reported quarterly loan growth, which was led by
the following categories: nonfarm nonresidential loans (up $7.1 billion, or 1.5 percent), C&I
loans (up $3.3 billion, or 1.5 percent), and construction and development (C&D) loans (up
$2.5 billion, or 2.2 percent). Smaller farm loan balances (down $1.2 billion, or 0.9 percent)
and home equity balances (down $0.5 billion, or 1.1 percent) partially offset the growth.

Chart 3

Chart 4
Noncurrent Loan Rates for FDIC-Insured Community Banks

Change in Loan Balances and Unused Commitments
FDIC-Insured Community Banks

Change 1Q 2019 vs. 1Q 2018
Change 1Q 2019 vs. 4Q 2018

$ Billions
40

35 33.6
30

12

20

17.4

15
5

16

C&I Loans
Home Equity
Farm Loans

14

25

10

C&D Loans
Nonfarm Nonresidential RE
1–4 Family RE

Share of Loan Portfolio Noncurrent
Percent

7.1

0

10

17.0
10.3
3.3

1.0

2.5

2.2

8

9.7

7.5
0.9

2.2

4

-1.8

-5
Nonfarm
Nonresidential
RE

Source: FDIC.

C&I
Loans

1–4 Family
Residential
RE

Loan Balances

16 FDIC QUARTERLY

C&D
Loans

Agricultural
Production
Loans

CRE &
C&D

6

C&I
Loans

Unused
Commitments

2
0
2009

2010

Source: FDIC.

2011

2012

2013

2014

2015

2016

2017

2018

2019

QUARTERLY BANKING PROFILE

Loan and lease balances increased $99.2 billion (6.6 percent) during the past 12 months.
Annual loan growth was broad based as every major loan category increased, and nearly
eight out of ten (79 percent) community banks reported higher loan balances year over year.
The following categories led annual growth: nonfarm nonresidential loans (up $33.6 billion,
or 7.6 percent), C&I loans (up $17.4 billion, or 8.7 percent), 1–4 family residential loans (up
$17.4 billion, or 4.1 percent), and C&D loans (up $10.3 billion, or 10 percent). Unused loan
commitments of $313.3 billion were $21.3 billion (7.3 percent) higher than a year ago.
Noncurrent Rate Falls
Despite Rise in Noncurrent
Balances

Total noncurrent loan and lease balances increased $176.7 million (1.4 percent) during the
quarter. Lower 1–4 family residential, nonfarm nonresidential, and consumer noncurrent balances were more than offset by higher noncurrent balances in farm, C&I, and
C&D categories. The largest increase in noncurrent balances occurred in farm loans (up
$194.6 million, or 13.7 percent).
Despite the rise in noncurrent balances, the total loan and lease noncurrent rate declined
for the 35th time in the past 37 quarters. Strong loan growth caused the total loan noncurrent rate to fall 1 basis point quarter over quarter to 0.77 percent. The largest improvement
occurred in consumer (down 10 basis points to 0.58 percent) and 1–4 family residential
(down 9 basis points to 0.95 percent) categories. The noncurrent rate for farm loans increased
16 basis points during the quarter to 1.28 percent owing to increases in the noncurrent rates
for farmland loans (up 17 basis points to 1.51 percent) and agricultural production loans (up
14 basis points to 0.93 percent).

Quarterly Net Charge-Off
Rate Nears Record Low

The community bank first quarter 2019 net charge-off rate of 0.09 percent marked the
lowest community bank net charge-off rate since first quarter 2006 and the second-lowest
net charge-off rate on record.2 The total loan net charge-off rate fell 4 basis points from first
quarter 2018 led by declines in C&I (down 32 basis points) and consumer (down 15 basis
points) categories. The net charge-off rate for loans secured by commercial real estate was
0.03 percent, while the rate for loans secured by residential real estate was 0.02 percent. The
net charge-off rate on farm loans was 0.06 percent.

Community Bank Capital
Ratios Increase During
the Quarter

Equity capital totaled $259.8 billion, up $7.4 billion (2.9 percent) compared with first quarter 2018. The increase in capital exceeded the increase in risk-weighted assets, resulting
in a higher average community bank tier 1 risk-based capital ratio (up 8 basis points to
14.80 percent) and a higher average community bank total risk-based capital ratio (up 7 basis
points to 15.83 percent). The leverage capital ratio increased 2 basis points to 11.11 percent.
Author:
Nathan L. Hinton
Senior Financial Analyst
Division of Insurance and Research
2 Record

consists of data from first quarter 1984 to first quarter 2019.

FDIC QUARTERLY 17

2019 • Volume 1 3 • Numb er 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 (%)

2019*

2018*

2018

2017

2016

2015

2014

1.16
10.18
11.11
0.68
0.09
2.30
3.67
6.09
4,930
3.91

1.11
9.97
10.89
0.77
0.13
-0.35
3.64
10.29
5,170
4.29

1.19
10.59
11.09
0.70
0.12
2.30
3.72
28.25
4,979
3.55

0.96
8.65
10.80
0.78
0.16
1.17
3.62
0.14
5,228
5.74

0.99
8.81
10.69
0.94
0.16
2.97
3.57
2.42
5,461
4.67

0.99
8.85
10.67
1.07
0.15
2.71
3.57
9.53
5,735
5.04

0.93
8.45
10.57
1.34
0.21
2.21
3.61
4.81
6,037
6.44

* 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
2019

4th Quarter
2018

1st Quarter
2018

%Change
18Q1-19Q1

4,930
406,567

4,979
412,582

5,170
412,784

-4.6
-1.5

$2,258,243
1,234,808
399,227
477,538
113,477
47,539
217,008
64,036
1,988
50,928
40,158
642
1,606,296
18,271
1,588,024
392,214
2,986
16,714
258,304

$2,259,236
1,238,904
399,799
481,738
113,146
48,273
221,357
63,624
1,908
52,755
40,186
651
1,616,174
18,439
1,597,736
396,521
3,053
17,498
244,429

$2,207,509
1,199,926
394,737
461,526
106,233
48,596
205,329
61,525
1,925
48,595
38,273
702
1,552,945
18,189
1,534,757
406,458
3,782
14,190
248,321

2.3
2.9
1.1
3.5
6.8
-2.2
5.7
4.1
3.3
4.8
4.9
-8.6
3.4
0.5
3.5
-3.5
-21.0
17.8
4.0

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

2,258,243
1,860,724
1,858,415
2,310
77,519
1,355,593
119,370
618
17,673
259,857
259,789

2,259,236
1,854,520
1,853,812
708
77,746
1,344,668
128,936
791
17,046
257,943
257,864

2,207,509
1,817,576
1,816,787
789
93,062
1,339,041
129,045
629
15,581
244,677
244,562

2.3
2.4
2.3
192.6
-16.7
1.2
-7.5
-1.8
13.4
6.2
6.2

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

9,221
12,365
6,042
177,051
2,106,932
95,973
313,281
269,944
12,980
83,568

8,634
12,603
6,381
174,438
2,104,212
105,149
310,569
302,177
13,056
74,850

8,966
13,207
6,616
175,102
2,062,773
106,697
298,799
303,564
19,406
70,239

2.8
-6.4
-8.7
1.1
2.1
-10.1
4.8
-11.1
-33.1
19.0

(dollar figures in millions)
Number of institutions reporting
Total employees (full-time equivalent)
CONDITION DATA
Total assets
Loans secured by real estate
		 1-4 Family residential mortgages
		Nonfarm nonresidential
		 Construction and development
		 Home equity lines
Commercial & industrial loans
Loans to individuals
		Credit cards
Farm loans
Other loans & leases
Less: Unearned income
Total loans & leases
Less: Reserve for losses
Net loans and leases
Securities
Other real estate owned
Goodwill and other intangibles
All other assets

INCOME DATA
Total interest income
Total interest expense
Net interest income
Provision for loan and lease losses
Total noninterest income
Total noninterest expense
Securities gains (losses)
Applicable income taxes
Extraordinary gains, net*
Total net income (includes minority interests)
		 Bank net income
Net charge-offs
Cash dividends
Retained earnings
Net operating income
* See Notes to Users for explanation.

18 FDIC QUARTERLY

Full Year
2018

Full Year
2017

%Change

1st Quarter
2019

1st Quarter
2018

%Change
18Q1-19Q1

$90,342
14,545
75,796
2,928
18,372
60,242
38
4,940
3
26,098
26,087
1,935
11,497
14,590
26,071

$82,472
10,348
72,123
3,157
18,796
59,321
353
8,199
2
20,598
20,575
2,408
10,016
10,559
20,327

9.5
40.6
5.1
-7.3
-2.3
1.6
-89.2
-39.7
22.9
26.7
26.8
-19.6
14.8
38.2
28.3

$23,934
4,770
19,165
659
4,257
15,081
164
1,332
-2
6,512
6,512
363
3,278
3,234
6,382

$21,628
3,044
18,584
820
4,521
15,048
55
1,232
2
6,063
6,059
500
2,462
3,597
6,016

10.7
56.7
3.1
-19.6
-5.8
0.2
196.3
8.1
N/M
7.4
7.5
-27.4
33.2
-10.1
6.1
N/M - Not Meaningful

QUARTERLY BANKING PROFILE
TABLE II-B. Aggregate Condition and Income Data, FDIC-Insured Community Banks
Prior Periods Adjusted for Mergers
1st Quarter
2019

4th Quarter
2018

1st Quarter
2018

%Change
18Q1-19Q1

4,930
406,567

4,929
406,227

4,926
402,198

0.1
1.1

$2,258,243
1,234,808
399,227
477,538
113,477
47,539
217,008
64,036
1,988
50,928
40,158
642
1,606,296
18,271
1,588,024
392,214
2,986
16,714
258,304

$2,225,009
1,222,601
398,262
470,390
111,001
48,057
213,744
63,599
2,086
52,700
39,497
643
1,591,500
18,174
1,573,326
392,088
3,008
16,311
240,277

$2,145,654
1,161,133
382,194
443,896
103,159
47,126
199,584
60,294
1,998
48,732
38,058
674
1,507,127
17,770
1,489,357
396,718
3,646
14,451
241,481

5.2
6.3
4.5
7.6
10.0
0.9
8.7
6.2
-0.5
4.5
5.5
-4.7
6.6
2.8
6.6
-1.1
-18.1
15.7
7.0

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

2,258,243
1,860,724
1,858,415
2,310
77,519
1,355,593
119,370
618
17,673
259,857
259,789

2,225,009
1,827,510
1,825,414
2,096
75,374
1,325,222
127,711
618
16,687
252,483
252,407

2,145,654
1,770,609
1,768,419
2,189
90,546
1,301,186
120,967
620
15,273
238,186
238,077

5.2
5.1
5.1
5.5
-14.4
4.2
-1.3
-0.3
15.7
9.1
9.1

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

9,221
12,365
6,042
177,051
2,106,932
95,973
313,281
269,944
12,980
83,568

8,527
12,188
6,301
173,229
2,074,041
105,239
305,471
288,289
13,056
72,279

8,793
12,770
6,432
172,007
2,004,528
99,039
291,980
257,948
14,403
67,119

4.9
-3.2
-6.1
2.9
5.1
-3.1
7.3
4.7
-9.9
24.5

(dollar figures in millions)
Number of institutions reporting
Total employees (full-time equivalent)
CONDITION DATA
Total assets
Loans secured by real estate
		 1-4 Family residential mortgages
		Nonfarm nonresidential
		 Construction and development
		 Home equity lines
Commercial & industrial loans
Loans to individuals
		Credit cards
Farm loans
Other loans & leases
Less: Unearned income
Total loans & leases
Less: Reserve for losses
Net loans and leases
Securities
Other real estate owned
Goodwill and other intangibles
All other assets

INCOME DATA
Total interest income
Total interest expense
Net interest income
Provision for loan and lease losses
Total noninterest income
Total noninterest expense
Securities gains (losses)
Applicable income taxes
Extraordinary gains, net*
Total net income (includes minority interests)
		 Bank net income
Net charge-offs
Cash dividends
Retained earnings
Net operating income
* See Notes to Users for explanation. 

Full Year
2018

Full Year
2017

%Change

1st Quarter
2019

1st Quarter
2018

%Change
18Q1-19Q1

$88,678
14,344
74,334
2,851
17,815
58,776
15
4,873
3
25,666
25,654
1,874
11,354
14,299
25,657

$79,018
9,819
69,199
3,056
17,582
56,228
343
7,870
2
19,973
19,959
2,311
9,536
10,422
19,709

12.2
46.1
7.4
-6.7
1.3
4.5
-95.7
-38.1
22.9
28.5
28.5
-18.9
19.1
37.2
30.2

$23,934
4,770
19,165
659
4,257
15,081
164
1,332
-2
6,512
6,512
363
3,278
3,234
6,382

$20,949
2,929
18,020
796
4,341
14,496
53
1,204
2
5,919
5,917
482
2,378
3,539
5,874

14.3
62.8
6.4
-17.3
-1.9
4.0
207.0
10.7
N/M
10.0
10.1
-24.8
37.9
-8.6
8.7
N/M - Not Meaningful

FDIC QUARTERLY 19

2019 • Volume 1 3 • Numb er 2
TABLE III-B. Aggregate Condition and Income Data by Geographic Region, FDIC-Insured Community Banks
First Quarter 2019
(dollar figures in millions)

Geographic Regions*
All Community Banks

New York

Atlanta

Chicago

Kansas City

Dallas

San Francisco

4,930
406,567

561
83,358

569
45,519

1,085
83,491

1,314
71,769

1,094
87,312

307
35,118

$2,258,243
1,234,808
399,227
477,538
113,477
47,539
217,008
64,036
1,988
50,928
40,158
642
1,606,296
18,271
1,588,024
392,214
2,986
16,714
258,304

$619,213
386,500
139,424
139,484
26,071
15,308
54,507
15,814
410
626
11,971
168
469,250
4,434
464,816
94,251
530
4,843
54,772

$227,433
125,524
39,717
54,798
14,044
6,295
18,845
6,327
146
1,256
2,924
92
154,784
1,758
153,026
41,048
597
1,128
31,633

$391,528
207,962
68,309
78,324
16,338
9,844
40,829
11,903
240
8,315
6,943
49
275,903
3,173
272,730
70,585
540
2,931
44,743

$373,185
183,536
54,188
62,616
16,336
5,351
38,755
10,810
550
29,107
6,825
106
268,927
3,529
265,398
65,159
514
2,377
39,736

$420,370
208,414
66,414
85,220
29,633
4,856
42,243
12,696
217
8,886
7,078
131
279,185
3,407
275,777
83,298
654
2,987
57,654

$226,514
122,872
31,175
57,097
11,055
5,885
21,829
6,487
424
2,739
4,416
97
158,247
1,970
156,277
37,872
152
2,447
29,767

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

2,258,243
1,860,724
1,858,415
2,310
77,519
1,355,593
119,370
618
17,673
259,857
259,789

619,213
491,622
490,934
688
26,199
345,467
49,494
500
6,211
71,386
71,361

227,433
191,194
191,193
1
5,120
139,512
8,822
15
1,553
25,848
25,844

391,528
323,842
323,712
130
13,014
255,755
19,338
36
2,789
45,523
45,505

373,185
310,171
310,171
0
14,196
240,273
18,497
10
2,308
42,199
42,198

420,370
355,330
355,330
0
11,460
252,609
14,339
42
2,644
48,015
47,994

226,514
188,566
187,075
1,491
7,531
121,976
8,880
15
2,168
26,886
26,886

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

9,221
12,365
6,042
177,051
2,106,932
95,973
313,281
269,944
12,980
83,568

2,117
3,663
2,060
53,248
580,554
42,406
84,347
55,149
7,524
37,164

1,019
1,148
617
18,560
210,829
7,254
27,245
8,799
71
6,947

1,559
2,222
1,374
28,074
365,182
14,706
55,511
54,226
1,245
13,245

1,896
2,182
874
23,199
349,264
14,244
55,827
93,338
2,736
12,046

2,054
2,414
714
32,770
390,119
11,176
53,610
40,598
995
8,543

576
737
402
21,201
210,984
6,187
36,741
17,834
410
5,622

$23,934
4,770
19,165
659
4,257
15,081
164
1,332
-2
6,512
6,512
363
3,278
3,234
6,382

$6,305
1,547
4,758
141
835
3,668
146
422
-2
1,505
1,504
98
587
917
1,390

$2,443
439
2,004
57
415
1,653
9
127
0
591
591
30
235
356
583

$4,081
777
3,304
82
1,057
2,801
-5
243
0
1,229
1,229
37
636
593
1,233

$3,998
802
3,196
131
719
2,495
5
163
0
1,131
1,131
66
658
472
1,126

$4,592
816
3,776
170
849
2,984
7
167
0
1,311
1,312
93
798
514
1,305

$2,516
389
2,127
77
382
1,479
2
210
0
745
745
39
365
381
744

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

INCOME DATA
Total interest income
Total interest expense
Net interest income
Provision for loan and lease losses
Total noninterest income
Total noninterest expense
Securities gains (losses)
Applicable income taxes
Extraordinary gains, net**
Total net income (includes minority interests)
		 Bank net income
Net charge-offs
Cash dividends
Retained earnings
Net operating income
* See Table V-A for explanation.
** See Notes to Users for explanation.

20 FDIC QUARTERLY

QUARTERLY BANKING PROFILE
Table IV-B. First Quarter 2019, FDIC-Insured Community Banks
All Community Banks
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

1st Quarter
2019
4.58
0.91
3.67
0.76
2.69
0.12
1.14
1.40
1.16
10.18
0.09
181.52
64.02
81.82
3.91
62.74

4th Quarter
2018
4.62
0.84
3.78
0.83
2.80
0.14
1.22
1.40
1.21
10.62
0.15
134.74
63.94
80.85
7.39
72.91

First Quarter 2019, Geographic Regions*
New York
4.38
1.07
3.30
0.54
2.39
0.09
0.91
1.25
0.98
8.54
0.08
143.45
65.27
85.07
4.28
62.92

Atlanta
4.69
0.84
3.85
0.74
2.94
0.10
1.04
1.28
1.05
9.31
0.08
190.30
67.77
82.85
5.27
66.08

Chicago
4.50
0.86
3.65
1.09
2.88
0.08
1.27
1.51
1.26
10.99
0.05
222.70
63.83
75.76
4.24
61.57

Kansas City
4.62
0.93
3.69
0.78
2.69
0.14
1.21
1.40
1.22
10.87
0.10
199.36
63.29
81.64
3.65
58.98

Dallas
4.77
0.85
3.92
0.82
2.87
0.16
1.26
1.42
1.26
11.12
0.13
182.78
64.26
81.64
2.74
64.90

San Francisco
4.80
0.74
4.06
0.68
2.63
0.14
1.32
1.70
1.33
11.25
0.10
198.72
58.64
84.78
4.89
68.73

Dallas
4.65
0.64
4.00
0.88
2.95
0.16
1.34
1.49
1.33
11.89
0.16
144.32
63.88
80.79
2.90
78.79

San Francisco
4.63
0.58
4.05
0.69
2.71
0.12
1.32
1.65
1.32
11.51
0.09
205.17
60.13
84.61
5.47
83.92

Table V-B. Full Year 2018, FDIC-Insured Community Banks
All Community Banks
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

Full Year
2018
4.43
0.71
3.72
0.84
2.75
0.13
1.19
1.42
1.19
10.59
0.12
151.31
63.63
80.49
3.55
78.73

Full Year
2017
4.14
0.52
3.62
0.88
2.77
0.15
0.95
1.35
0.96
8.65
0.16
131.12
64.86
79.33
5.74
55.18

Full Year 2018, Geographic Regions*
New York
4.23
0.85
3.38
0.64
2.45
0.14
0.98
1.25
0.99
8.75
0.13
138.91
63.80
83.15
4.03
86.34

Atlanta
4.53
0.65
3.87
0.78
2.99
0.12
1.07
1.26
1.06
9.65
0.12
151.35
67.90
82.06
5.74
83.30

Chicago
4.34
0.66
3.68
1.21
2.96
0.11
1.29
1.55
1.29
11.26
0.10
150.95
63.63
73.87
3.56
75.41

Kansas City
4.46
0.73
3.73
0.83
2.71
0.15
1.28
1.46
1.28
11.56
0.13
163.97
62.34
80.70
2.49
74.94

* See Table V-A for explanation.

FDIC QUARTERLY 21

2019 • Volume 1 3 • Numb er 2
Table VI-B. Loan Performance, FDIC-Insured Community Banks
Geographic Regions*
March 31, 2019

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

0.52
0.44
0.37
0.12
0.44
0.78
0.56
1.29
2.05
1.26
0.80
0.57

0.43
0.36
0.35
0.09
0.53
0.64
0.41
1.42
2.21
1.40
0.21
0.45

0.63
0.49
0.35
0.20
0.52
1.13
0.66
1.32
1.39
1.32
0.39
0.66

0.57
0.48
0.45
0.22
0.45
0.82
0.47
0.74
0.94
0.74
0.55
0.56

0.60
0.43
0.37
0.18
0.29
0.72
0.69
0.94
3.41
0.81
1.19
0.70

0.67
0.47
0.46
0.14
0.46
1.06
0.71
1.90
1.24
1.91
0.76
0.74

0.28
0.39
0.23
0.03
0.27
0.35
0.46
1.31
1.39
1.31
0.72
0.36

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

0.75
0.60
0.64
0.19
0.49
0.95
0.94
0.58
1.11
0.56
0.83
0.77

0.79
0.74
0.67
0.17
0.63
1.17
0.96
0.37
1.33
0.34
0.27
0.78

0.75
0.69
0.61
0.23
0.49
0.96
0.74
0.68
0.89
0.67
0.56
0.74

0.84
0.61
0.77
0.32
0.46
0.99
0.78
0.31
0.58
0.30
0.82
0.81

0.75
0.63
0.68
0.15
0.24
0.60
1.02
0.45
1.74
0.38
1.01
0.81

0.77
0.46
0.73
0.28
0.41
0.94
1.17
1.27
0.66
1.28
0.92
0.86

0.39
0.50
0.29
0.06
0.47
0.55
0.74
0.36
0.70
0.34
0.93
0.47

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

0.03
0.00
0.04
0.01
0.03
0.02
0.18
0.90
6.16
0.73
0.15
0.09

0.04
0.01
0.04
0.03
0.04
0.04
0.17
0.93
3.56
0.86
0.14
0.08

0.02
0.00
0.02
0.02
0.04
0.03
0.17
0.85
2.09
0.82
0.15
0.08

0.01
-0.02
0.02
-0.02
0.06
0.02
0.12
0.41
1.61
0.38
0.14
0.05

0.01
-0.01
0.02
-0.02
0.00
0.01
0.20
1.08
15.64
0.28
0.12
0.10

0.06
0.00
0.13
0.03
0.05
0.02
0.19
1.01
1.70
1.00
0.21
0.13

0.00
0.04
0.01
0.00
-0.01
-0.02
0.25
1.27
2.51
1.18
0.21
0.10

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

$1,234.8
113.5
477.5
120.9
47.5
399.2
217.0
64.0
2.0
62.0
91.1
1,606.9

$386.5
26.1
139.5
63.7
15.3
139.4
54.5
15.8
0.4
15.4
12.6
469.4

$125.5
14.0
54.8
6.3
6.3
39.7
18.8
6.3
0.1
6.2
4.2
154.9

$208.0
16.3
78.3
17.6
9.8
68.3
40.8
11.9
0.2
11.7
15.3
276.0

$183.5
16.3
62.6
11.2
5.4
54.2
38.8
10.8
0.6
10.3
35.9
269.0

$208.4
29.6
85.2
8.4
4.9
66.4
42.2
12.7
0.2
12.5
16.0
279.3

$122.9
11.1
57.1
13.7
5.9
31.2
21.8
6.5
0.4
6.1
7.2
158.3

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

313,281
24,888
65,012
100,828

84,347
5,025
20,536
27,581

27,245
3,428
6,250
7,229

55,511
2,916
10,826
19,869

55,827
3,145
8,692
17,224

53,610
7,265
12,673
16,866

36,741
3,109
6,035
12,059

* See Table V-A for explanation.
** 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.

22 FDIC QUARTERLY

QUARTERLY BANKING PROFILE

Insurance Fund Indicators
Deposit Insurance Fund Increases by $2.3 Billion
Insured Deposits Grow by 2.3 Percent
DIF Reserve Ratio Is Unchanged at 1.36 Percent
During the first quarter, the Deposit Insurance Fund (DIF) balance increased by $2.3 billion
to $104.9 billion. Assessment income of $1.4 billion and interest earned on investments of
$507 million were the largest sources of the increase. Unrealized gains on available-for-sale
securities of $421 million and a negative provision for insurance losses of $396 million also
added to the DIF. Operating expenses of $434 million reduced the fund. No institutions
failed during the first quarter of 2019.
The deposit insurance assessment base—average consolidated total assets minus average tangible equity—increased by 0.8 percent in the first quarter and by 3.3 percent over
12 months.1,  2    Total estimated insured deposits increased by 2.3 percent in the quarter and
5.0 percent year over year.
The strong growth in insured deposits offset the increase in the fund balance, resulting in a
DIF reserve ratio of 1.36 percent on March 31, 2019. The reserve ratio was unchanged from
December 31, 2018, though it increased year over year by 6 basis points.
Small banks will receive credits to offset the portion of their assessments that help to raise
the reserve ratio from 1.15 percent to 1.35 percent. The total amount of credits to be issued
among credit-accruing institutions is $764.7 million. Following each quarter that the reserve
ratio is at or above 1.38 percent, the FDIC will automatically apply each small bank’s credits
to reduce its regular assessment up to the entire amount of the assessment.
	Author:
Kevin Brown
Senior Financial Analyst
Division of Insurance and Research
1 There

are additional adjustments to the assessment base for banker’s banks and custodial banks.
for estimated insured deposits and the assessment base include insured branches of foreign banks, in addition to insured
commercial banks and savings institutions.
2 Figures

FDIC QUARTERLY 23

2019 • Volume 1 3 • Numb er 2
Table I-C. Insurance Fund Balances and Selected Indicators
Deposit Insurance Fund*

(dollar figures in millions)

1st
Quarter
2019

4th
Quarter
2018

3rd
Quarter
2018

2nd
Quarter
2018

1st
Quarter
2018

4th
Quarter
2017

3rd
Quarter
2017

2nd
Quarter
2017

1st
Quarter
2017

4th
Quarter
2016

3rd
Quarter
2016

2nd
Quarter
2016

1st
Quarter
2016

Beginning Fund Balance

$102,609

$100,204

$97,588

$95,072

$92,747

$90,506

$87,588

$84,928

$83,162

$80,704

$77,910

$75,120

$72,600

1,369

1,351

2,728

2,598

2,850

2,656

2,568

2,634

2,737

2,688

2,643

2,328

2,328

507

481

433

381

338

305

274

251

227

189

171

164

147

0
434

0
453

0
434

0
445

0
433

0
443

0
404

0
450

0
442

0
437

0
422

0
441

0
415

-396

-236

-121

-141

-65

-203

-512

-233

765

-332

-566

-627

-43

2

2

2

3

1

3

1

4

2

3

3

2

5

421
2,261

788
2,405

-234
2,616

-162
2,516

-496
2,325

-481
2,242

-33
2,918

-12
2,660

7
1,766

-317
2,457

-167
2,794

110
2,790

412
2,520

104,870

102,609

100,204

97,588

95,072

92,747

90,506

87,588

84,928

83,162

80,704

77,910

75,120

10.31

10.63

10.72

11.42

11.95

11.53

12.14

12.42

13.06

14.55

15.10

15.27

15.05

1.36

1.36

1.36

1.33

1.30

1.30

1.27

1.24

1.20

1.20

1.18

1.17

1.13

7,699,687

7,525,387

7,377,158

7,355,373

7,334,658

7,156,067

7,101,090

7,049,332

7,081,095

6,917,200

6,817,375

6,674,365

6,661,815

4.98

5.16

3.89

4.34

3.58

3.45

4.16

5.62

6.29

6.11

6.41

5.38

5.18

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
Ending Fund Balance
Percent change from
   four quarters earlier
Reserve Ratio (%)
Estimated Insured
Deposits
Percent change from
   four quarters earlier
Domestic Deposits
Percent change from
   four quarters earlier

12,725,354 12,659,392 12,367,954 12,280,904 12,305,817 12,129,503 11,966,478 11,827,933 11,856,691 11,693,371 11,506,877 11,242,960 11,156,523

Assessment Base***
Percent change from
   four quarters earlier

15,566,656 15,450,368 15,227,710

3.41

Number of Institutions
Reporting

4.37

3.36

3.83

3.79

3.73

3.99

5.20

7.56

5.74

5.06

3.00

2.66

2.79

3.06

3.01

3.14

3.60

4.48

5.28

5.27

4.43

3.40

5,371

5,415

5,486

5,551

5,616

5,679

5,747

5,796

5,865

5,922

5,989

6,067

6,131

1.36

Deposit Insurance Fund Balance
and Insured Deposits
($ Millions)

3/19

3/16
6/16
9/16
12/16
3/17
6/17
9/17
12/17
3/18
6/18
9/18
12/18
3/19

Percent of Insured Deposits

3/16

6.76

3.31

DIF Reserve Ratios

1.13

6.28

15,112,192 15,068,149 15,000,660 14,833,620 14,702,421 14,620,355 14,562,629 14,382,434 14,191,462 13,994,116

1.20

1.17

1.18

6/16

9/16 12/16

1.20

3/17

1.24

6/17

1.27

1.30

9/17 12/17

1.30

3/18

1.33

6/18

1.36

1.36

9/18 12/18

DIF
Balance

DIF-Insured
Deposits

$75,120
77,910
80,704
83,162
84,928
87,588
90,506
92,747
95,072
97,588
100,204
102,609
104,870

$6,661,815
6,674,365
6,817,375
6,917,200
7,081,095
7,049,332
7,101,090
7,156,067
7,334,658
7,355,373
7,377,158
7,525,387
7,699,687

Table II-C. Problem Institutions and Failed Institutions
(dollar figures in millions)

2019****

2018****

Problem Institutions
Number of institutions
Total assets

2018

2017

59
$46,665

92
$56,445

60
$48,489

95
$13,939

123
$27,624

183
$46,780

291
$86,712

467
$152,687

Failed Institutions
Number of institutions
Total assets*****

0
$0

0
$0

0
$0

8
$5,082

5
$277

8
$6,706

18
$2,914

24
$6,044

* Quarterly financial statement results are unaudited.
** Includes unrealized postretirement benefit gain (loss).
*** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.
**** Through March 31.
***** Total assets are based on final Call Reports submitted by failed institutions.

24 FDIC QUARTERLY

2016

2015

2014

2013

QUARTERLY BANKING PROFILE
Table III-C. Estimated FDIC-Insured Deposits by Type of Institution
(dollar figures in millions)
March 31, 2019
Commercial Banks and Savings Institutions
FDIC-Insured Commercial Banks
		FDIC-Supervised
		OCC-Supervised
		Federal Reserve-Supervised
FDIC-Insured Savings Institutions
		OCC-Supervised
		FDIC-Supervised
		Federal Reserve-Supervised

Total Commercial Banks and Savings Institutions
Other FDIC-Insured Institutions
U.S. Branches of Foreign Banks
Total FDIC-Insured Institutions

Number of
Institutions

Total
Assets

Domestic
Deposits*

Est. Insured
Deposits

4,681
3,122
810
749

$16,906,570
2,630,086
11,450,974
2,825,510

$11,743,977
2,097,094
7,657,172
1,989,711

$6,899,353
1,438,888
4,359,848
1,100,616

681
305
337
39

1,183,404
773,087
378,585
31,731

940,924
631,487
284,014
25,423

764,786
522,092
222,312
20,382

5,362

18,089,974

12,684,901

7,664,139

9

82,984

40,453

35,548

5,371

18,172,958

12,725,354

7,699,687

* Excludes $1.2 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, 2018 (dollar figures in billions)
Annual Rate in Basis Points*

Number of
Institutions

Percent of Total
Institutions

Amount of
Assessment Base**

Percent of Total
Assessment Base

1.50 - 3.00

3,371

62.25

$6,034.2

39.06

3.01 - 6.00

1,423

26.28

8,455.1

54.72

6.01 - 10.00

486

8.98

831.8

5.38

10.01 - 15.00

64

1.18

101.0

0.65

15.01 - 20.00

57

1.05

14.3

0.09

20.01 - 25.00

6

0.11

1.4

0.01

> 25.00

8

0.15

12.6

0.08

* Assessment rates do not incorporate temporary surcharges on large banks.
** 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 25

2019 • Volume 1 3 • Numb er 2

Notes to Users

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 VIII-A of the
FDIC Quarterly Banking Profile is aggregated for all FDIC-insured
Call Report filers, both commercial banks and savings 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.
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://www.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 non-brokered 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.
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 adjusted
upward quarterly. For banking offices, banks must have more than
one office, and the maximum number of offices is 40 in 1985 and

26 FDIC QUARTERLY

reached 87 in 2016. The maximum level of deposits for any one
office is $1.25 billion in deposits in 1985 and reached $6.97 billion
in deposits in 2016. 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 quarterly and below which the limits on banking activities
and geographic scope are waived. The asset-size limit is $250 million
in 1985 and reached $1.39 billion in 2016. 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.

Summary of FDIC Research Definition of Community
Banking Organizations
Community banks are designated at the level of the banking
organization.
(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
• Number of large MSAs with offices ≤ 2
• Number of states with offices ≤ 3
• No single office with deposits > indexed maximum branch
deposit size.4

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 institutions, estimated FDIC-insured
deposits, as well as assessment rate information. Depository insti-

1 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 $1.39 billion in 2016.

3 Maximum

number of offices indexed to equal 40 in 1985 and 87 in 2016.

4 Maximum

branch deposit size indexed to equal $1.25 billion in 1985 and $6.97 billion

in 2016.

QUARTERLY BANKING PROFILE

tutions that are not insured by the FDIC through the DIF are not
included in the FDIC Quarterly Banking Profile. U.S. branches of
institutions ­headquartered in foreign countries and non-deposit trust
companies are not included unless otherwise indicated. Efforts are
made to obtain financial reports for all active institutions. However,
in some cases, final financial reports are not available for institutions
that have closed or converted their charters.

DATA SOURCES
The financial information appearing in this publication is obtained
primarily from the Federal Financial Institutions Examination
Council (FFIEC) Consolidated Reports of Condition and Income
(Call Reports) and the OTS Thrift Financial Reports (TFR) 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 doublecounting. No adjustments are made for any double-counting of subsidiary data. Additionally, c­ ertain 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 condition and performance ratios represent weighted averages,
which is the sum of the individual numerator values divided by the
sum of individual denominator values. All asset and liability figures
used in calculating performance ratios represent average amounts for
the period (beginning-of-period amount plus end-of-period amount
plus any interim periods, divided by the total number of periods). For
“pooling-of-interest” mergers, the assets of the acquired institution(s)
are included in average assets, since the year-to-date income includes
the results of all merged institutions. No adjustments are made for
“purchase accounting” mergers. 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. When community
bank growth rates are adjusted for mergers, prior period balances
used in the calculations represent totals for the current group of community bank reporters, plus prior period amounts for any institutions
that were subsequently merged into current community banks.
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; institutions can move their home offices between regions,
savings institutions can convert to commercial banks, or commercial
banks may convert to savings institutions.

ACCOUNTING CHANGES
Financial accounting pronouncements by the Financial Accounting
Standards Board (FASB) can result in changes in an individual
bank’s accounting policies and in the Call Reports they submit. Such
accounting changes can affect the aggregate amounts presented in the
QBP for the current period and the period-to-period comparability of
such financial data.
The current quarter’s Financial Institution Letter (FIL) and related
Call Report supplemental instructions can provide additional explanation to the QBP reader beyond any material accounting changes
discussed in the QBP analysis.
https://www.fdic.gov/news/news/financial/2019/fil19021.html
https://www.fdic.gov/news/news/financial/2019/fil19021.pdf
https://www.fdic.gov/regulations/resources/call/call.html
Further information on changes in financial statement presentation,
income recognition and disclosure is available from the FASB. http://
www.fasb.org/jsp/FASB/Page/LandingPage&cid=1175805317350.

DEFINITIONS (in alphabetical order)
All other assets – total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate,
investment in unconsolidated subsidiaries, customers’ liability on
acceptances outstanding, assets held in trading accounts, federal
funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid deposit insurance assessments, and
other assets.
All other liabilities – bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses,
fair market value of derivatives, and other liabilities.
Assessment base – effective April 1, 2011, the deposit insurance
assessment base 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 deposits in banks’ domestic offices with certain
adjustments.
Assessment rate schedule – Initial base assessment rates for small
institutions are based on a combination of financial ratios and
CAMELS component ratings. Initial rates for large institutions—
generally those with at least $10 billion in assets—are also based
on CAMELS component ratings and certain 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). The FDIC may take
additional information into account to make a limited adjustment to
a large institution’s scorecard results, which are used to determine a
large institution’s initial base assessment rate.
While risk categories for small institutions (except new institutions) were eliminated effective July 1, 2016, initial rates for small
institutions are subject to minimums and maximums based on an
institution’s CAMELS composite rating. (Risk categories for large
institutions were eliminated in 2011.)
The current assessment rate schedule became effective July 1, 2016.
Under the current schedule, initial base assessment rates range
from 3 to 30 basis points. An institution’s total base assessment rate

FDIC QUARTERLY 27

2019 • Volume 1 3 • Numb er 2

may differ from its initial rate due to three possible adjustments:
(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 3 basis points would have a
maximum unsecured debt adjustment of 1.5 basis points and could
not have a total base assessment rate lower than 1.5 basis points.
(2) Depository Institution Debt Adjustment: For institutions that
hold long-term 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 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.
The assessment rate schedule effective July 1, 2016, is shown in the
following table:
Total Base Assessment Rates*
Established Small Banks
1 or 2

3

4 or 5

Large and
Highly
Complex
Institutions**

Initial Base
Assessment Rate

3 to 16

6 to 30

16 to 30

3 to 30

Unsecured Debt
Adjustment

-5 to 0

-5 to 0

-5 to 0

-5 to 0

Brokered Deposit
Adjustment

N/A

N/A

N/A

0 to 10

Total Base
Assessment Rate

1.5 to 16

3 to 30

11 to 30

1.5 to 40

CAMELS Composite

* 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.
** Effective July 1, 2016, large institutions are also subject to temporary
assessment surcharges in order to raise the reserve ratio from 1.15 percent to
1.35 percent. The surcharges amount to 4.5 basis points of a large institution’s
assessment base (after making certain adjustments).

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.
Assets securitized and sold – total outstanding principal balance
of assets securitized and sold with servicing retained or other sellerprovided 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 non­
cumulative 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

28 FDIC QUARTERLY

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.
Derivatives credit equivalent amount – the fair value of the derivative plus an additional amount for potential future c­ redit 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.

QUARTERLY BANKING PROFILE

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 noninterest-bearing transaction accounts as a new
temporary deposit insurance account category. All funds held in
noninterest-bearing transaction accounts were fully insured, without
limit, from December 31, 2010, through December 31, 2012.
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-forsale 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 s­ ervicing
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 sellerprovided 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 enter­
prises. Also, see “Securities,” below.
Net charge-offs – total loans and leases charged off (removed from
balance sheet because of uncollectability), less amounts recovered on
loans and leases previously charged off.
Net interest margin – the difference between interest and dividends
earned on interest-bearing assets and interest paid to depositors and
other creditors, expressed as a percentage of average earning assets.
No adjustments are made for interest income that is tax exempt.
Net loans to total assets – loans and lease financing receivables, net
of unearned income, allowance and reserves, as a percent of total
assets on a consolidated basis.
Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and
extraordinary items. Income taxes subtracted from operating income
have been adjusted to exclude the portion applicable to securities
gains (or losses).
Noncurrent assets – the sum of loans, leases, debt securities, and
other assets that are 90 days or more past d­ue, or in nonaccrual status.
Noncurrent loans & leases – the sum of loans and leases 90 days or
more past due, and loans and leases in nonaccrual status.
Number of institutions reporting – the number of institutions that
actually filed a financial report.
New 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 filed a
Thrift Financial Report (TFR), the v­ aluation 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.

FDIC QUARTERLY 29

2019 • Volume 1 3 • Numb er 2

Recourse – an arrangement in which a bank retains, in form or in
substance, any credit risk directly or indirectly associated with an
asset it has sold (in accordance with generally accepted accounting
principles) that exceeds a pro rata share of the bank’s claim on the
asset. If a bank has no claim on an asset it has sold, then the retention
of any credit risk is recourse.
Reserves for losses – the allowance for loan and lease losses on a
consolidated basis.
Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. Excludes
restructured loans and leases that are not in compliance with the
modified terms.
Retained earnings – net income less cash dividends on common and
preferred stock for the reporting period.
Return on assets – bank net income (including gains or losses on
securities and extraordinary items) as a percentage of aver­age total
(consolidated) assets. The basic yardstick of bank profitability.
Return on equity – bank net income (including gains or losses on
securities and extraordinary items) as a percentage of average total
equity capital.
Risk-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-balance-sheet accounts.
Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity”
(reported at amortized cost (book value)), securities designated as
“available-for-sale” (reported at fair (market) value), and equity
­securities with readily determinable fair values not held for trading.
Securities gains (losses) – realized gains (losses) on held-to-­
maturity and available-for-sale securities, before adjustments for
income taxes. Thrift Financial Report (TFR) filers also include gains
(losses) on the sales of assets held for sale. (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

30 FDIC QUARTERLY

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 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 and 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.