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Quarterly Banking Profile

Fourth Quarter 2007

INSURED INSTITUTION PERFORMANCE
I
I
I
I
I

Industry Earned $5.8 Billion In Fourth Quarter
Expenses For Bad Loans, Trading Losses Weigh On Earnings
Noncurrent Rate On Mortgage Loans Reaches New High
Pace Of Reserve Building Picks Up
Net Income Totaled $105.5 Billion In 2007

Quarterly Net Income Declines to a 16-Year Low

One in Four Large Institutions Lost Money in the
Fourth Quarter

Record-high loan-loss provisions, record losses in trading
activities and goodwill impairment expenses combined to
dramatically reduce earnings at a number of FDIC-insured
institutions in the fourth quarter of 2007. Fourth-quarter
net income of $5.8 billion was the lowest amount reported
by the industry since the fourth quarter of 1991, when
earnings totaled $3.2 billion. It was $29.4 billion (83.5 percent) less than insured institutions earned in the fourth
quarter of 2006. The average return on assets (ROA) in
the quarter was 0.18 percent, down from 1.20 percent a
year earlier. This is the lowest quarterly ROA since the
fourth quarter of 1990, when it was a negative 0.19 percent. Insured institutions set aside a record $31.3 billion in
provisions for loan losses in the fourth quarter, more than
three times the $9.9 billion they set aside in the fourth
quarter of 2006. Trading losses totaled $10.6 billion, marking the first time that the industry has posted a quarterly
net trading loss. In the fourth quarter of 2006, the industry
had trading revenue of $4.0 billion. Expenses for goodwill
and other intangibles totaled $7.4 billion, compared to
$1.6 billion a year earlier. Against these negative factors,
net interest income remained one of the few positive elements in industry performance. Net interest income for
the fourth quarter totaled $92.0 billion, an 11.8-percent
($9.7-billion) year-over-year increase.

Earnings weakness was fairly widespread in the fourth quarter. More than half of all institutions (51.2 percent)
reported lower net income than in the fourth quarter of
2006, and 57.1 percent reported lower quarterly ROAs.
However, the magnitude of the decline in industry earnings was attributable to a relatively small number of large
institutions. In contrast to the steep 102 basis-point drop
in the industry’s ROA, the median ROA fell by only 14
basis points, from 0.93 percent to 0.79 percent. Seven large
institutions accounted for more than half of the total yearover-year increase in loss provisions. Ten large institutions
accounted for the entire decline in trading results. Five
institutions accounted for three-quarters of the increase in
goodwill and intangibles expenses, and sixteen institutions
accounted for three-quarters of the year-over-year decline
in quarterly net income. One out of every four institutions
with assets greater than $10 billion reported a net loss for
the fourth quarter. Institutions associated with subprime
mortgage lending operations and institutions engaged in
significant trading activity were among those reporting the
largest earnings declines.

Chart 2

Chart 1

Loss Provisions Set a New Quarterly Record

Fourth Quarter Earnings Are the Lowest
Since 1991
$ Billions
40.0
Securities and Other Gains/Losses, Net

Net Operating Income
31.8 31.2 32.5 31.1
32.0
30.4 31.1
29.5 30.2

36.9

35.2 35.6

34.0 33.2 34.7
32.6

4th Quarter 2006 to 4th Quarter 2007 ($ Billions)
21.4

38.0 38.1

36.9

Positive
Factor

Negative
Factors

19.1

28.8

9.7
24.0

16.0

5.8

8.0

-4.1
0.0
1

2

3

2003

FDIC QUARTERLY

4

1

2

3

2004

4

1

2

3

2005

4

1

2

3

2006

4

1

2

3

Increase in
Net Interest
Income

4

2007

1

-8.1
Decrease in
Noninterest
Income

Increase in Decrease in Increase in
Loan Loss
Gains on
Noninterest
Provision Securities Sales Expense

2008, VOLUME 2, NO. 1

Margin Erosion Persists

aside $68.2 billion in provisions for loan losses in 2007, more
than twice the $29.5 billion they set aside in 2006. Loss provisions represented 11.6 percent of net operating revenue
(net interest income plus total noninterest income), the
highest proportion for the industry since 1992. Total noninterest income of $233.4 billion was $7.0 billion (2.9 percent)
less than in 2006, as trading revenue fell from $19.0 billion in
2006 to only $4.1 billion in 2007, and net gains on loan sales
fell by $5.1 billion (68.5 percent). This is the first time since
the mid-1970s that full-year noninterest income has
declined.1 Noninterest expenses were $30.2 billion (9.1 percent) higher than a year earlier. Net interest income
increased by $22.7 billion (6.9 percent) in 2007, even though
the industry’s full-year net interest margin declined to its lowest level since 1988, because interest-earning assets grew by
9.4 percent during the year.

As interest rates fell during the quarter, average asset yields
declined more than average funding costs, and net interest
margins (NIMs) narrowed slightly from third-quarter levels.
The average NIM in the fourth quarter was 3.30 percent,
compared to 3.36 percent in the third quarter. Except for the
fourth quarter of 2006, when the accounting treatment of a
few large corporate restructurings resulted in a reduction in
reported net interest income, this is the lowest quarterly NIM
for the industry since 1989. Almost 60 percent of all institutions had their margins decline from third-quarter levels.
Margin erosion was especially pronounced at large mortgage
lenders.

Full-Year Earnings Fall to Five-Year Low
For all of 2007, insured institutions earned $105.5 billion, a
decline of $39.8 billion (27.4 percent) from 2006. This is the
lowest annual net income for the industry since 2002 and is
the first time since 1999-2000 that annual net income has
declined. While much of the decline in industry earnings
was concentrated among some of the largest institutions, evidence of broader weakness in earnings bespoke an operating
environment that was less favorable than in previous years.
Fewer than half of all insured institutions—49.2 percent—
reported improved earnings in 2007, the first time in at least
23 years that a majority of insured institutions have not posted full-year earnings increases. The percentage of institutions
that were unprofitable in 2007—11.6 percent—was the highest since 1991. The average ROA for the year was 0.86 percent, the lowest yearly average since 1991, when it was 0.42
percent, and the first time in 15 years that the industry’s
annual ROA has been below 1 percent. More than half of all
institutions—59.2 percent—reported lower ROAs in 2007
than in 2006. Sharply higher loss provisions and a very rare
decline in annual noninterest income were primarily responsible for the lower industry profits. Insured institutions set

1 Total noninterest income of FDIC-insured commercial banks declined by
$1.0 billion (11.7 percent) between 1975 and 1976. Noninterest income data
for insured savings institutions are not available for those years.

Chart 3

Chart 4

Net Charge-Off Rate Rises to Five-Year High
Net charge-offs registered a sharp increase in the fourth quarter, rising to $16.2 billion, compared to $8.5 billion in the
fourth quarter of 2006. The annualized net charge-off rate in
the fourth quarter was 0.83 percent, the highest since the
fourth quarter of 2002. Net charge-offs were up year-overyear in all major loan categories except loans to the farm sector (agricultural production loans and real estate loans secured
by farmland). Net charge-offs of loans to commercial and
industrial (C&I) borrowers were $1.6 billion (104.5 percent)
higher than in the fourth quarter of 2006. Net charge-offs of
residential mortgage loans were up by $1.3 billion (144.2 percent), and charge-offs of home equity lines of credit were $1.0
billion (378.4 percent) higher. Credit card charge-offs were
up by $1.0 billion (33.0 percent), and charge-offs of other
loans to individuals increased by $1.1 billion (58.4 percent).

Margins Remain Near 19-Year Lows

Annual ROA Fell to Its Lowest Level Since 1991

Net Interest Margin (%)
5.00

Annual ROA %
1.6

ROE

1.4

Assets < $100 Million
4.50

Annual ROE %
16.0
14.0

1.2

4.08

12.0

1.0

10.0

4.00

ROA
0.8
0.6

6.0

0.4

4.0

0.2

3.50

8.0

2.0

3.29

3.00

Assets > $100 Million
0.0

2.50

1

2

3

2003

FDIC QUARTERLY

4

1

2

3

2004

4

1

2

3

2005

4

1

2

3

2006

4

1

2

3

4

0.0

-0.2

-2.0
1984

2007

2

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008, VOLUME 2, NO. 1

Quarterly Banking Profile

Growth in Noncurrent Loans Accelerates

loans and leases rose from 1.13 percent to 1.29 percent during
the quarter, its highest level since the first quarter of 2005.
But the “coverage ratio” of reserves to noncurrent loans fell
from $1.05 in reserves for every $1.00 of noncurrent loans to
93 cents at the end of 2007. This is the first time since 1993
that the industry’s noncurrent loans have exceeded its
reserves. At year end, one in three institutions had noncurrent loans that exceeded reserves, compared to fewer than
one in four institutions a year earlier.

Despite the heightened level of charge-offs, the rising trend
in noncurrent loans that began in mid-2006 continued to
gain momentum in the fourth quarter. Total noncurrent
loans — loans 90 days or more past due or in nonaccrual status — rose by $26.9 billion (32.5 percent) in the last three
months of 2007. This is the largest percentage increase in a
single quarter in the 24 years for which noncurrent loan data
are available. Eight institutions accounted for half of the
total increase in noncurrent loans in the fourth quarter, but
noncurrent loans were up at half of all insured institutions.
The percentage of loans that were noncurrent at year-end
was 1.39 percent, the highest level since the third quarter of
2002. The fourth-quarter increase in noncurrent loans was
led by noncurrent residential mortgage loans, which grew by
$11.1 billion (31.7 percent). The percentage of residential
mortgage loans that were noncurrent rose from 1.57 percent
to 2.06 percent during the quarter and is now at the highest
level in the 17 years that noncurrent mortgage data have
been reported. Noncurrent real estate construction and
development loans increased by $8.4 billion (73.2 percent),
noncurrent credit card loans rose by $1.9 billion (26.0 percent), noncurrent home equity loans were up by $1.6 billion
(43.1 percent), and noncurrent other loans to individuals
increased by $1.2 billion (26.7 percent). Only the farm loan
categories registered declines in noncurrent amounts.

Capital Ratios Exhibit Mixed Results
Total equity capital increased by $25.1 billion (1.9 percent)
during the fourth quarter. This increase lagged behind the
2.6-percent increase in assets during the quarter, and the
industry’s equity-to-assets ratio declined from 10.44 percent
to 10.37 percent. Goodwill accounted for almost one-third
($7.9 billion) of the increase in equity, despite large writedowns of goodwill at several institutions. The industry’s
leverage capital ratio registered a larger decline during the
quarter, because leverage capital does not include goodwill.
The leverage ratio fell from 8.14 percent to 7.98 percent, a
four-year low. In contrast, the industry’s total risk-based capital ratio, which includes loss reserves, increased from 12.74
percent to 12.79 percent. At the end of 2007, 99 percent of
all insured institutions, representing more than 99 percent of
total industry assets, met or exceeded the highest regulatory
capital standards.

Large Boost to Loss Reserves Fails to Stem Decline in
Coverage Ratio

Asset Growth Remains Strong in the Fourth Quarter

Insured institutions’ loss reserves posted their largest increase
in 20 years in the fourth quarter, but this growth did not keep
pace with the growth in noncurrent loans. The industry’s
$31.3-billion loss provision exceeded the $16.2 billion in net
charge-offs by a considerable margin, and reserves grew by
$14.8 billion (17.0 percent). The ratio of reserves to total

Assets continued to grow strongly in the fourth quarter, but
the focus of growth shifted away from residential mortgage
loans. Total assets increased by $331.8 billion (2.6 percent)
during the quarter. Fed funds sold and securities purchased
under resale agreements increased by $71.5 billion (11.5 percent), assets in trading accounts grew by $64.6 billion (8.0

Chart 5

Chart 6

Asset Quality Continues to Weaken

A Growing Number of Institutions Have Concentrations
of Exposure to Construction Lending

Percent
4.00

Number of insured institutions where construction loans exceed total capital
2,500

3.50
2,000

3.00

1,609
1,538

2.50
1,500

Noncurrent Loan Rate
2.00

1,3361,374
1,260
1,1791,227

2,034
1,959
1,871
1,769
1,688

2,1662,188
2,104

2,368
2,3042,348
2,245

1,434

1,000

1.50
1.00

500
0.50

Quarterly Net Charge-off Rate

0.00
1990

1992

FDIC QUARTERLY

1994

1996

1998

2000

2002

2004

0

2006

3

03/03

09/03

03/04

09/04

03/05

09/05

03/06

09/06

03/07

09/07

2008, VOLUME 2, NO. 1

percent), C&I loans increased by $51.5 billion (3.7 percent),
and credit card loans grew by $38.0 billion (9.9 percent). The
industry’s portfolio of mortgage-backed securities rose by
$36.9 billion (3.1 percent). Real estate loans secured by nonfarm nonresidential properties increased by $29.0 billion (3.1
percent). Residential mortgage loans rose by only $7.1 billion (0.3 percent), compared to a $30.8-billion increase in
the third quarter. Real estate construction and development
loans increased by only $12.5 billion (2.0 percent) during the
fourth quarter. This is the smallest quarterly increase since
the fourth quarter of 2003. Despite the slowdown in growth
of construction lending, the number of institutions with concentrations of exposure to construction lending continued to
rise. During the fourth quarter, the number of institutions
whose construction loans exceeded their total capital
increased from 2,348 to 2,368.

increased by $2.6 trillion (13.4 percent) during the year, with
assets in managed accounts increasing by $68.6 billion (1.6
percent) and assets in non-managed accounts rising by $2.5
trillion (16.9 percent). Assets in custodial and safekeeping
accounts increased by $9.8 trillion (20.3 percent) in 2007.
Net income from trust activities totaled $12.8 billion in
2007, an increase of $2.8 billion (28.6 percent) over 2006.
Five institutions accounted for 53 percent of the industry’s
net trust income in 2007.

Three Failures in 2007 Is Most Since 2004
The number of FDIC-insured institutions reporting financial
results declined from 8,559 to 8,533 during the fourth quarter.2 Fifty newly chartered institutions were added during the
quarter, while 74 institutions were absorbed by mergers. One
insured commercial bank failed in the fourth quarter. For the
full year, 181 new insured institutions were chartered, 321
charters were absorbed in mergers, and three insured institutions failed. In the previous two years, there were no failures
of FDIC-insured institutions, an interval unprecedented since
the inception of the FDIC. In 2004, four insured institutions
failed. Five mutually owned savings institutions, with combined assets of $4.8 billion, converted to stock ownership in
the fourth quarter. For the entire year, ten insured savings
institutions with total assets of $10.1 billion converted from
mutual ownership to stock ownership. At the end of 2007,
there were 76 FDIC-insured commercial banks and savings
institutions on the “Problem List,” with combined assets of
$22.2 billion, up from 65 institutions with $18.5 billion at
the end of the third quarter.

Domestic Deposits Post Record Growth
Deposits in domestic offices of insured institutions increased
by $170.6 billion (2.5 percent), the largest quarterly dollar
increase ever reported by the industry. Deposits in noninterest-bearing accounts rose by $64.9 billion (5.8 percent), time
deposits grew by $53.5 billion (2.1 percent), and deposits in
other interest-bearing accounts increased by $49.1 billion
(1.6 percent). Brokered deposits increased by $63.3 billion
(12.4 percent). Nondeposit liabilities rose by $74.0 billion
(2.3 percent), led by advances from Federal Home Loan
Banks (up $38.4 billion, or 5.0 percent). Deposits in foreign
offices grew by $62.2 billion (4.3 percent). The industry’s
ratio of deposits to total assets, which hit an all-time low of
64.4 percent at the end of the third quarter, rose slightly to
64.5 percent at year end.

2 At the time this issue of the Quarterly Banking Profile went to press, one
insured commercial bank with assets of $1.2 billion had not yet submitted a
year-end 2007 Call Report.

Trust Income Rose in 2007
Both trust assets and income from trust activities registered
strong growth in 2007. Total assets in trust accounts

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

Chart 7

Chart 8

Commercial Lending Is Leading Overall
Loan Growth

Chartering and Merger Activity Slowed in 2007
Number of Institutions

Quarterly Change ($ Billions)
180

700

Commercial Loans
Consumer Loans

160

Mergers
600

140
120

500

100

400

80

300

New Charters

60
200

40
100

20
0

Failures

0
1

2

3

2004

FDIC QUARTERLY

4

1

2

3

2005

4

1

2

2006

3

4

1

2

3

1992

4

1994

1996

1998

2000

2002

2004

2006

2007

4

2008, VOLUME 2, NO. 1

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/assisted institutions .........................

2007
0.86
8.17
.
7.98
.

2006
1.28
12.30
8.22

2005
1.28
12.43
8.25

2004
1.28
13.20
8.11

2003
1.38
15.05
7.88

2002
1.30
14.08
7.86

2001
1.14
13.02
7.79

0.94
0.59
9.94
3.29
.
-23.72
8,533
.
7,282
1,251
11.56
76
$22
3

0.54
0.39
9.03
3.31
8.50
8,680
7,401
1,279
7.93
50
$8
0

0.50
0.49
7.64
3.47
11.39
8,833
7,526
1,307
6.22
52
$7
0

0.53
0.56
11.36
3.52
4.02
8,976
7,631
1,345
5.97
80
$28
4

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

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

0.87
0.83
5.44
3.78
-0.48
9,614
8,080
1,534
8.24
114
$40
4

* Excludes insured branches of foreign banks (IBAs)

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

4th Quarter
2007
8,533
2,214,621

3rd Quarter
2007
8,559
2,220,559

4th Quarter
2006
8,680
2,206,656

%Change
06:4-07:4
-1.7
0.4

$13,038,765
4,780,631
2,245,323
968,401
628,918
607,396
1,440,314
1,059,143
422,481
56,783
571,798
2,313
7,906,357
101,715
7,804,643
1,954,086
12,138
465,680
2,802,218

$12,706,982
4,701,042
2,238,248
939,426
616,447
591,363
1,388,804
1,013,345
384,506
56,166
546,314
2,237
7,703,433
86,948
7,616,485
1,989,074
9,806
461,065
2,630,552

$11,860,042
4,507,714
2,175,790
904,368
565,282
559,307
1,214,754
955,263
384,980
54,257
503,608
2,401
7,233,196
77,533
7,155,663
1,980,497
6,057
413,434
2,304,391

9.9
6.1
3.2
7.1
11.3
8.6
18.6
10.9
9.7
4.7
13.5
-3.7
9.3
31.2
9.1
-1.3
100.4
12.6
21.6

Total liabilities and capital ...................................................................................
Deposits ...........................................................................................................
Domestic office deposits ...............................................................................
Foreign office deposits ..................................................................................
Other borrowed funds .......................................................................................
Subordinated debt ............................................................................................
All other liabilities ..............................................................................................
Equity capital ....................................................................................................

13,038,765
8,414,356
6,911,780
1,502,575
2,517,336
185,409
569,405
1,352,259

12,706,982
8,181,581
6,741,172
1,440,409
2,454,143
177,474
566,582
1,327,202

11,860,042
7,825,219
6,631,184
1,194,036
2,121,086
160,547
505,335
1,247,855

9.9
7.5
4.2
25.8
18.7
15.5
12.7
8.4

(dollar figures in millions)

110,937
Loans and leases 30-89 days past due ...............................................................
Noncurrent loans and leases ...............................................................................
109,914
Restructured loans and leases ............................................................................
6,991
Direct and indirect investments in real estate ......................................................
1,104
Mortgage-backed securities ................................................................................
1,236,031
Earning assets .....................................................................................................
11,306,104
FHLB advances ...................................................................................................
808,781
Unused loan commitments ..................................................................................
8,359,380
Trust assets .........................................................................................................
21,865,518
Assets securitized and sold** ..............................................................................
1,773,817
Notional amount of derivatives** ......................................................................... 164,780,773
Full Year
Full Year
2007
2006
INCOME DATA
Total interest income ................................................................................... $725,156
$643,459
Total interest expense .................................................................................
372,311
313,353
Net interest income ...................................................................................
352,845
330,106
Provision for loan and lease losses .............................................................
68,164
29,545
Total noninterest income .............................................................................
233,419
240,430
Total noninterest expense ...........................................................................
362,540
332,307
Securities gains (losses) ..............................................................................
-1,331
1,969
Applicable income taxes ..............................................................................
47,019
68,081
Extraordinary gains, net ...............................................................................
-1,740
2,669
Net income ................................................................................................
105,470
145,242
Net charge-offs ............................................................................................
43,903
27,016
Cash dividends ............................................................................................
110,160
93,445
Retained earnings ........................................................................................
-4,690
51,797
Net operating income ...............................................................................
107,852
141,388
** Call Report filers only.

FDIC QUARTERLY

92,233
82,974
4,130
1,098
1,199,169
11,031,937
770,363
8,302,064
21,501,132
1,741,732
173,284,358
%Change
12.7
18.8
6.9
130.7
-2.9
9.1
N/M
-30.9
N/M
-27.4
62.5
17.9
N/M
-23.7

71,507
57,387
2,608
1,091
1,206,913
10,336,488
620,914
7,572,935
19,277,633
1,310,475
132,182,732
4th Quarter 4th Quarter
2007
2006
$189,149
$171,499
97,117
89,180
92,032
82,319
31,253
9,852
47,831
55,917
100,128
81,044
-3,633
513
-731
14,709
237
2,094
5,816
35,238
16,155
8,509
20,550
34,104
-14,734
1,134
7,762
32,879

55.1
91.5
168.1
1.2
2.4
9.4
30.3
10.4
13.4
35.4
24.7
%Change
06:4-07:4
10.3
8.9
11.8
217.2
-14.5
23.6
N/M
N/M
-88.7
-83.5
89.9
-39.7
N/M
-76.4

N/M - Not Meaningful

5

2008, VOLUME 2, NO. 1

TABLE III-A. Full Year 2007, 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 .............................................
Net income (in millions) ..........................................
Commercial banks ..............................................
Savings institutions .............................................
Performance Ratios (%)
Yield on earning assets ..........................................
Cost of funding earning assets ..............................
Net interest margin ..............................................
Noninterest income to assets .................................
Noninterest expense to assets ...............................
Loan and lease loss provision to assets ................
Net operating income to assets .............................
Pretax return on assets ..........................................
Return on assets ....................................................
Return on equity .....................................................
Net charge-offs to loans and leases ......................
Loan and lease loss provision to net charge-offs ...
Efficiency ratio ........................................................
% of unprofitable institutions ..................................
% of institutions with earnings gains ......................

All Insured Credit Card International Agricultural Commercial
Institutions
Banks
Banks
Banks
Lenders
8,533
27
5
1,591
4,773
7,282
23
5
1,586
4,279
1,251
4
0
5
494
$13,038.8
$479.3
$2,784.3
$157.5
$4,619.1
11,176.1
437.9
2,784.3
157.1
4,158.8
1,862.7
41.4
0.0
0.4
460.3
8,414.4
153.6
1,706.1
128.2
3,268.7
7,308.9
143.2
1,706.1
127.8
2,966.0
1,105.5
10.4
0.0
0.3
302.8
105,470
15,390
14,893
1,808
38,261
99,511
13,799
14,893
1,804
36,979
5,959
1,591
0
4
1,282

Other
Mortgage
Consumer Specialized
All Other
All Other
Lenders
Lenders
<$1 Billion
<$1 Billion
>$1 Billion
786
108
374
813
56
183
83
332
749
42
603
25
42
64
14
$1,333.6
$94.3
$37.9
$110.1
$3,422.5
211.9
41.2
29.5
95.1
3,260.3
1,121.7
53.2
8.4
15.0
162.3
738.3
71.3
26.7
90.1
2,231.4
79.2
27.4
21.1
78.2
2,159.9
659.1
43.8
5.6
11.8
71.5
3,931
1,179
959
1,111
27,938
1,814
786
627
1,019
27,789
2,117
393
332
92
149

6.76
3.47
3.29
1.90
2.94
0.55
0.88
1.24
0.86
8.17
0.59
155.26
59.37
11.56
49.19

13.18
4.63
8.56
10.50
8.34
3.72
3.34
5.39
3.46
15.12
3.95
126.17
44.54
7.41
55.56

6.23
3.64
2.59
1.97
2.83
0.59
0.57
0.75
0.58
7.44
0.76
176.05
66.95
0.00
40.00

7.15
3.18
3.97
0.68
2.69
0.17
1.21
1.45
1.21
10.88
0.22
113.69
61.94
3.08
61.28

6.88
3.29
3.59
1.26
2.77
0.38
0.91
1.26
0.86
7.94
0.35
154.02
59.45
14.33
47.18

6.57
3.93
2.63
0.93
2.23
0.59
0.33
0.47
0.30
3.14
0.40
209.60
61.10
14.25
32.70

7.61
3.34
4.26
2.54
3.53
1.04
1.24
1.99
1.27
11.69
0.87
143.98
52.61
10.19
49.07

5.49
2.45
3.04
11.07
9.84
0.09
2.58
3.88
2.60
13.11
0.29
122.56
70.95
24.60
44.92

6.56
2.86
3.70
1.03
3.05
0.13
1.02
1.27
1.04
9.11
0.21
113.56
68.46
4.06
55.23

6.23
3.30
2.94
1.88
2.74
0.34
0.91
1.27
0.89
8.34
0.39
160.85
60.50
5.36
46.43

86.71

80.98

83.66

91.04

88.45

92.03

91.27

88.15

91.62

85.08

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

1.29
92.54

4.15
207.47

1.46
103.22

1.27
121.50

1.23
93.62

0.86
45.74

1.22
61.51

1.33
172.87

1.18
123.83

0.92
80.15

0.94
10.37
7.98
10.12
12.79
92.75
59.86
53.01

1.54
21.26
14.57
13.26
15.88
229.92
73.70
29.57

0.67
8.01
6.38
8.59
12.50
71.46
43.79
26.68

0.83
11.17
10.32
13.70
14.75
80.85
65.78
81.37

1.06
11.03
8.48
9.74
11.83
98.54
69.73
68.18

1.52
8.61
7.89
12.94
14.94
126.71
70.15
55.29

1.65
12.63
9.87
11.33
13.12
105.89
79.99
74.58

0.23
20.04
18.59
41.05
42.07
33.55
23.65
68.15

0.66
11.46
11.05
18.13
19.24
68.80
56.27
81.79

0.68
10.32
7.43
9.86
12.78
81.82
53.35
53.36

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

181
321
3

1
1
0

0
0
0

5
24
0

49
254
0

5
12
2

0
2
0

120
2
0

1
7
0

0
19
1

PRIOR FULL YEARS
(The way it was...)
Number of institutions .................................. 2006
............................. 2004
............................. 2002

8,680
8,976
9,354

26
34
40

4
5
5

1,634
1,731
1,823

4,713
4,423
4,070

817
990
1,107

123
132
196

411
466
488

895
1,120
1,525

57
75
100

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

$11,860.0
10,105.9
8,435.7

$408.4
383.0
299.3

$2,337.2
1,881.3
1,273.1

$149.2
138.7
123.8

$4,904.7
3,301.4
2,960.6

$1,445.0
1,503.6
1,342.0

$109.9
104.1
166.5

$42.2
52.0
60.2

$119.6
143.3
197.4

$2,343.9
2,598.4
2,013.0

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

1.28
1.28
1.30

4.19
4.03
3.60

1.01
0.76
0.74

1.23
1.22
1.24

1.28
1.29
1.30

0.94
1.18
1.31

1.75
1.66
1.35

1.54
1.68
1.08

1.04
1.10
1.14

1.26
1.32
1.32

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

0.39
0.56
0.97

3.48
4.66
6.12

0.48
0.91
1.77

0.17
0.22
0.29

0.22
0.30
0.65

0.15
0.12
0.20

1.40
1.57
1.07

0.42
0.59
1.36

0.20
0.29
0.35

0.22
0.25
0.81

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

0.54
0.53
0.90

1.37
1.50
1.68

0.40
0.57
1.19

0.67
0.68
0.85

0.55
0.51
0.87

0.56
0.43
0.71

0.85
0.53
1.28

0.20
0.31
0.59

0.56
0.59
0.70

0.45
0.45
0.75

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

10.52
10.28
9.20

22.88
20.54
15.48

7.75
8.05
7.14

10.73
10.78
10.76

11.16
10.10
9.36

9.91
10.55
9.07

14.16
11.36
7.35

21.12
17.47
17.18

10.98
10.79
10.62

9.78
10.23
9.10

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

FDIC QUARTERLY

6

2008, VOLUME 2, NO. 1

Quarterly Banking Profile
TABLE III-A. Full Year 2007, 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 ..............................................
Net income (in millions) ..........................................
Commercial banks ...............................................
Savings institutions ..............................................
Performance Ratios (%)
Yield on earning assets ..........................................
Cost of funding earning assets ...............................
Net interest margin ..............................................
Noninterest income to assets .................................
Noninterest expense to assets ...............................
Loan and lease loss provision to assets .................
Net operating income to assets ..............................
Pretax return on assets ..........................................
Return on assets ....................................................
Return on equity .....................................................
Net charge-offs to loans and leases .......................
Loan and lease loss provision to net charge-offs ...
Efficiency ratio ........................................................
% of unprofitable institutions ..................................
% of institutions with earnings gains ......................

$100 Million $1 Billion
Less
All
to
to
than
Insured
$10 Billion
Institutions $100 Million $1 Billion
8,533
3,440
4,425
549
7,282
3,065
3,706
425
1,251
375
719
124
$13,038.8
$181.9
$1,310.1
$1,420.3
11,176.1
162.9
1,062.1
1,112.7
1,862.7
19.0
247.9
307.5
8,414.4
148.1
1,039.9
1,008.1
7,308.9
133.8
854.8
792.0
1,105.5
14.3
185.1
216.1
105,470
1,322
12,440
13,473
99,511
1,282
10,804
11,519
5,959
39
1,636
1,954

Geographic Regions*
Greater
than $10
Billion
New York
119
1,042
86
548
33
494
$10,126.5
$2,439.7
8,838.4
1,759.6
1,288.2
680.1
6,218.3
1,512.9
5,528.4
1,066.5
690.0
446.4
78,235
18,068
75,905
17,126
2,330
942

Atlanta
1,220
1,075
145
$3,329.1
3,060.6
268.6
2,184.0
2,023.6
160.4
26,050
27,097
-1,047

Chicago
1,763
1,455
308
$2,842.7
2,685.7
157.0
1,828.3
1,717.8
110.5
23,630
23,028
602

Kansas
City
1,987
1,880
107
$977.9
935.2
42.7
691.1
661.1
30.0
13,304
13,116
187

San
Dallas
Francisco
1,743
778
1,618
706
125
72
$738.7
$2,710.7
621.2
2,113.9
117.5
596.9
547.1
1,650.9
476.6
1,363.2
70.5
287.7
7,192
17,226
6,331
12,813
861
4,413

6.76
3.47
3.29
1.90
2.94
0.55
0.88
1.24
0.86
8.17
0.59
155.26
59.37
11.56
49.19

6.96
2.91
4.05
1.22
3.77
0.21
0.74
0.97
0.75
5.39
0.23
145.31
76.03
18.11
50.00

7.14
3.29
3.86
1.13
3.13
0.25
0.98
1.31
0.99
9.44
0.24
149.06
66.10
7.12
49.58

7.07
3.37
3.70
1.43
2.83
0.42
1.05
1.48
0.99
8.79
0.41
149.28
57.57
6.19
45.17

6.65
3.52
3.13
2.08
2.92
0.62
0.84
1.20
0.82
7.98
0.68
156.29
58.43
11.76
29.41

6.81
3.45
3.36
2.18
3.14
0.67
0.83
1.22
0.79
6.45
0.90
130.05
56.25
16.03
37.33

6.56
3.47
3.08
1.53
2.57
0.37
0.88
1.20
0.84
8.10
0.33
184.23
59.87
17.54
39.02

6.08
3.35
2.73
2.05
2.77
0.39
0.87
1.27
0.87
9.66
0.46
154.10
61.13
10.72
47.14

7.61
3.26
4.34
3.36
4.21
0.85
1.44
2.09
1.46
14.29
0.78
154.18
57.70
6.14
55.41

7.15
3.28
3.86
1.37
3.19
0.32
1.01
1.36
1.02
10.00
0.29
165.05
64.13
8.20
58.92

7.25
3.73
3.52
1.56
2.89
0.80
0.68
0.93
0.66
6.17
0.76
164.10
59.60
19.41
47.94

86.71

91.70

91.80

90.51

85.43

86.67

86.09

86.00

86.55

89.91

87.45

1.29
92.54

1.28
107.04

1.17
95.86

1.29
96.09

1.30
91.30

1.52
121.32

1.06
91.96

1.29
83.62

1.39
81.59

1.16
95.20

1.36
86.53

0.94
10.37
7.98
10.12
12.79
92.75
59.86
53.01

0.95
13.74
13.53
19.67
20.70
76.66
62.40
81.39

1.06
10.52
9.97
13.21
14.30
87.98
69.83
79.26

1.06
11.37
9.44
11.95
13.26
96.38
68.41
70.31

0.90
10.15
7.41
9.32
12.40
93.35
57.32
46.68

0.76
12.07
8.68
11.86
13.92
90.83
56.32
52.94

0.81
10.32
7.07
8.93
11.64
93.25
61.18
58.30

0.95
9.24
7.17
8.79
11.72
84.19
54.14
50.45

1.37
9.75
8.09
9.46
12.18
97.15
68.66
63.54

0.97
10.23
8.88
11.14
12.80
89.09
65.99
73.19

1.09
10.35
9.02
11.59
14.66
102.72
62.56
39.97

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

181
321
3

174
114
2

5
167
0

2
31
1

0
9
0

22
74
1

53
45
1

16
77
1

12
48
0

33
46
0

45
31
0

PRIOR FULL YEARS
(The way it was...)
Number of institutions ................................... 2006
............................. 2004
............................. 2002

8,680
8,976
9,354

3,632
4,093
4,680

4,399
4,286
4,118

530
480
450

119
117
106

1,092
1,129
1,212

1,218
1,219
1,237

1,826
1,951
2,055

2,018
2,094
2,167

1,753
1,834
1,901

773
749
782

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

$11,860.0
10,105.9
8,435.7

$189.9
211.7
237.8

$1,290.0
1,199.6
1,124.9

$1,397.5
1,317.0
1,279.1

$8,982.6
7,377.6
5,793.9

$2,214.3
2,855.0
2,892.6

$2,911.4
2,177.1
1,711.2

$2,746.2
2,387.6
1,572.0

$859.8
768.2
440.1

$652.3
603.1
581.5

$2,476.1
1,315.1
1,238.3

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

1.28
1.28
1.30

0.92
1.00
0.99

1.16
1.19
1.16

1.22
1.45
1.44

1.31
1.27
1.31

1.27
1.37
1.11

1.31
1.34
1.32

1.10
0.88
1.28

1.76
1.55
1.58

1.23
1.26
1.41

1.29
1.60
1.58

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

0.39
0.56
0.97

0.18
0.28
0.32

0.16
0.27
0.41

0.20
0.39
0.69

0.47
0.65
1.18

0.72
0.88
1.45

0.19
0.31
0.71

0.28
0.41
0.77

0.55
0.74
1.19

0.21
0.27
0.44

0.43
0.60
0.81

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

0.54
0.53
0.90

0.73
0.74
0.85

0.59
0.56
0.74

0.52
0.51
0.69

0.53
0.53
0.98

0.51
0.58
1.01

0.33
0.35
0.78

0.57
0.55
1.00

1.05
0.81
0.82

0.62
0.61
0.81

0.56
0.51
0.74

10.52
10.28
9.20

13.01
11.82
11.28

10.39
10.19
10.06

10.97
10.89
10.06

10.42
10.15
8.76

12.48
11.21
8.85

10.05
8.74
9.38

9.07
9.36
8.57

10.64
10.62
10.34

10.42
10.78
9.60

10.92
12.10
9.98

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

Equity capital ratio (%) .................................. 2006
............................. 2004
............................. 2002
* See Table IV-A (page 9) for explanations.

FDIC QUARTERLY

7

2008, VOLUME 2, NO. 1

TABLE IV-A. Fourth Quarter 2007, All FDIC-Insured Institutions
Asset Concentration Groups*
FOURTH QUARTER
(The way it is...)
Number of institutions reporting .............................
Commercial banks ..............................................
Savings institutions .............................................
Total assets (in billions) .........................................
Commercial banks ..............................................
Savings institutions .............................................
Total deposits (in billions) ......................................
Commercial banks ..............................................
Savings institutions .............................................
Net income (in millions) ..........................................
Commercial banks ..............................................
Savings institutions .............................................

All Insured Credit Card International Agricultural Commercial
Institutions
Banks
Banks
Banks
Lenders
8,533
27
5
1,591
4,773
7,282
23
5
1,586
4,279
1,251
4
0
5
494
$13,038.8
$479.3
$2,784.3
$157.5
$4,619.1
11,176.1
437.9
2,784.3
157.1
4,158.8
1,862.7
41.4
0.0
0.4
460.3
8,414.4
153.6
1,706.1
128.2
3,268.7
7,308.9
143.2
1,706.1
127.8
2,966.0
1,105.5
10.4
0.0
0.3
302.8
5,816
3,027
-1,383
424
3,948
10,540
2,797
-1,383
423
5,097
-4,724
230
0
1
-1,148

Other
Mortgage
Consumer Specialized
All Other
All Other
Lenders
Lenders
<$1 Billion
>$1 Billion
<$1 Billion
786
108
374
813
56
183
83
332
749
42
603
25
42
64
14
$1,333.6
$94.3
$37.9
$110.1
$3,422.5
211.9
41.2
29.5
95.1
3,260.3
1,121.7
53.2
8.4
15.0
162.3
738.3
71.3
26.7
90.1
2,231.4
79.2
27.4
21.1
78.2
2,159.9
659.1
43.8
5.6
11.8
71.5
-3,230
156
214
258
2,402
448
153
117
237
2,651
-3,678
3
97
21
-249

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 ......................

6.78
3.48
3.30
1.49
3.11
0.97
0.24
0.16
0.18
1.74
0.83
193.46
66.27
17.68
47.56

13.36
4.40
8.97
10.43
8.32
5.37
2.49
4.10
2.61
11.96
4.23
167.80
42.33
11.11
48.15

6.20
3.57
2.63
1.01
2.83
0.98
-0.19
-0.63
-0.20
-2.55
1.05
209.30
86.38
40.00
0.00

7.15
3.17
3.99
0.71
2.83
0.20
1.09
1.32
1.10
9.73
0.31
95.69
64.66
10.75
58.39

6.93
3.35
3.58
1.05
2.97
0.72
0.36
0.49
0.35
3.14
0.60
170.12
63.50
20.18
43.08

6.38
3.86
2.52
0.78
2.72
1.13
-0.58
-1.34
-0.94
-10.51
0.66
240.30
68.46
20.87
47.20

7.84
3.41
4.43
2.57
3.77
1.71
0.65
1.14
0.66
5.29
1.03
201.17
54.48
20.37
51.85

5.60
2.50
3.10
11.20
10.26
0.09
2.28
3.61
2.30
11.46
0.26
136.68
73.26
28.07
46.26

6.61
2.87
3.73
1.07
3.18
0.20
0.92
1.14
0.95
8.24
0.33
104.18
70.43
8.86
53.38

6.32
3.36
2.96
1.43
2.90
0.68
0.35
0.26
0.29
2.78
0.55
231.63
71.27
12.50
46.43

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

50
74
1

0
0
0

0
0
0

1
2
0

17
63
0

1
4
1

0
0
0

31
0
0

0
4
0

0
1
0

PRIOR FOURTH QUARTERS
(The way it was...)
Return on assets (%) ................................... 2006
................................ 2004
................................ 2002

1.20
1.25
1.20

3.43
3.72
3.74

0.96
0.77
0.43

1.06
1.04
1.02

1.20
1.25
1.28

0.91
1.22
1.36

1.54
1.50
1.41

2.17
1.74
-0.80

1.00
0.99
1.02

1.21
1.25
1.17

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

0.47
0.60
0.98

3.88
4.64
5.36

0.36
1.10
1.73

0.30
0.31
0.45

0.35
0.35
0.65

0.19
0.15
0.29

1.62
1.44
1.15

0.32
0.54
2.33

0.28
0.36
0.49

0.29
0.24
0.90

*Asset Concentration Group Definitions (Groups are hierarchical and mutually exclusive):
Credit-card Lenders - Institutions whose credit-card loans plus securitized receivables exceed 50 percent of total assets plus securitized receivables.
International Banks - Banks with assets greater than $10 billion and more than 25 percent of total assets in foreign offices.
Agricultural Banks - Banks whose agricultural production loans, plus real estate loans secured by farmland, exceed 25 percent of the total loans and leases.
Commercial Lenders - Institutions whose commercial and industrial loans, plus real estate construction and development loans, plus loans
secured by commercial real estate properties, exceed 25 percent of total assets.
Mortgage Lenders - Institutions whose residential mortgage loans, plus mortgage-backed securities, exceed 50 percent of total assets.
Consumer Lenders - Institutions whose residential mortgage loans, plus credit-card loans, plus other loans to individuals, exceed 50 percent of total assets.
Other Specialized < $1 Billion - Institutions with assets less than $1 billion, whose loans and leases are less than 40 percent of total assets.
All Other < $1 billion - Institutions with assets less than $1 billion that do not meet any of the definitions above, they have significant lending
activity with no identified asset concentrations.
All Other > $1 billion - Institutions with assets greater than $1 billion that do not meet any of the definitions above, they have significant lending
activity with no identified asset concentrations.

FDIC QUARTERLY

8

2008, VOLUME 2, NO. 1

Quarterly Banking Profile
TABLE IV-A. Fourth Quarter 2007, All FDIC-Insured Institutions
Asset Size Distribution
FOURTH QUARTER
(The way it is...)
Number of institutions reporting .............................
Commercial banks ...............................................
Savings institutions ..............................................
Total assets (in billions) ..........................................
Commercial banks ...............................................
Savings institutions ..............................................
Total deposits (in billions) .......................................
Commercial banks ...............................................
Savings institutions ..............................................
Net income (in millions) ..........................................
Commercial banks ...............................................
Savings institutions ..............................................

$100 Million $1 Billion
Less
All
to
to
than $100
Insured
$10 Billion
$1 Billion
Million
Institutions
8,533
3,440
4,425
549
7,282
3,065
3,706
425
1,251
375
719
124
$13,038.8
$181.9
$1,310.1
$1,420.3
11,176.1
162.9
1,062.1
1,112.7
1,862.7
19.0
247.9
307.5
8,414.4
148.1
1,039.9
1,008.1
7,308.9
133.8
854.8
792.0
1,105.5
14.3
185.1
216.1
5,816
221
2,489
2,484
10,540
221
2,150
2,163
-4,724
0
339
321

Geographic Regions*
Greater
than $10
Billion
New York
119
1,042
86
548
33
494
$10,126.5
$2,439.7
8,838.4
1,759.6
1,288.2
680.1
6,218.3
1,512.9
5,528.4
1,066.5
690.0
446.4
622
1,709
6,006
2,993
-5,385
-1,284

Atlanta
1,220
1,075
145
$3,329.1
3,060.6
268.6
2,184.0
2,023.6
160.4
1,249
2,959
-1,709

Chicago
1,763
1,455
308
$2,842.7
2,685.7
157.0
1,828.3
1,717.8
110.5
4,322
4,304
18

Kansas
City
1,987
1,880
107
$977.9
935.2
42.7
691.1
661.1
30.0
2,385
2,366
19

San
Dallas
Francisco
1,743
778
1,618
706
125
72
$738.7
$2,710.7
621.2
2,113.9
117.5
596.9
547.1
1,650.9
476.6
1,363.2
70.5
287.7
1,110
-4,960
1,054
-3,136
57
-1,824

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 ......................

6.78
3.48
3.30
1.49
3.11
0.97
0.24
0.16
0.18
1.74
0.83
193.46
66.27
17.68
47.56

7.07
2.99
4.08
1.28
4.12
0.29
0.46
0.66
0.49
3.55
0.36
126.15
81.69
24.65
48.02

7.12
3.30
3.82
1.11
3.23
0.41
0.76
0.99
0.77
7.30
0.42
138.87
67.93
12.86
48.47

7.08
3.39
3.69
1.00
2.63
0.75
0.69
0.98
0.71
6.23
0.60
179.53
57.38
11.29
42.08

6.68
3.53
3.15
1.61
3.15
1.09
0.11
-0.07
0.02
0.24
0.94
199.30
66.98
25.21
25.21

6.86
3.44
3.42
2.18
3.44
0.97
0.39
0.58
0.28
2.32
1.00
171.70
56.21
20.54
45.30

6.66
3.57
3.08
1.00
2.65
0.76
0.28
0.04
0.15
1.50
0.56
222.53
70.15
25.16
36.48

6.20
3.40
2.80
2.08
2.94
0.70
0.61
0.86
0.62
6.77
0.74
172.84
63.36
16.39
47.19

7.65
3.22
4.43
3.21
4.29
1.52
0.97
1.26
1.00
10.05
1.10
196.92
59.62
13.89
53.40

7.09
3.25
3.83
1.30
3.39
0.58
0.60
0.79
0.61
5.93
0.46
189.26
67.45
13.20
54.79

7.05
3.64
3.42
0.31
3.08
1.41
-0.67
-1.35
-0.73
-6.95
1.09
203.52
83.58
24.81
37.66

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

50
74
1

50
30
1

0
39
0

0
5
0

0
0
0

8
12
0

13
5
0

4
33
1

5
12
0

9
6
0

11
6
0

PRIOR FOURTH QUARTERS
(The way it was...)
Return on assets (%) .................................... 2006
................................ 2004
................................ 2002

1.20
1.25
1.20

0.68
0.89
0.84

1.08
1.14
0.99

1.10
1.36
1.47

1.24
1.25
1.20

1.26
1.37
0.94

1.21
1.19
1.21

1.19
0.85
1.14

1.82
1.66
1.57

1.10
1.18
1.36

0.94
1.59
1.66

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

0.47
0.60
0.98

0.31
0.39
0.47

0.26
0.34
0.53

0.26
0.45
0.66

0.55
0.69
1.17

0.94
0.88
1.36

0.26
0.33
0.81

0.38
0.59
0.79

0.70
0.70
1.18

0.25
0.34
0.55

0.40
0.59
0.86

* Regions:
New York - Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Puerto Rico
Rhode Island, Vermont, U.S. Virgin Islands
Atlanta - Alabama, Florida, Georgia, North Carolina, South Carolina, Virginia, West Virginia
Chicago - Illinois, Indiana, Kentucky, Michigan, Ohio, Wisconsin
Kansas City - Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota
Dallas - Arkansas, Colorado, Louisiana, Mississippi, New Mexico, Oklahoma, Tennessee, Texas
San Francisco - Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Pacific Islands, Utah, Washington, Wyoming

FDIC QUARTERLY

9

2008, VOLUME 2, NO. 1

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

All Insured
Institutions

Credit Card International Agricultural Commercial
Banks
Banks
Banks
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 .....................................................

1.58
1.83
0.78
0.56
1.14
2.11
0.73
2.07
2.32
1.90
0.47
1.40

2.87
0.00
0.00
0.00
2.98
2.02
2.80
2.33
2.30
2.57
0.15
2.28

2.71
2.01
0.60
0.37
1.05
3.87
0.41
2.15
2.57
1.95
0.40
1.62

1.32
2.47
1.04
0.86
0.70
1.94
1.45
2.27
1.39
2.33
0.81
1.27

1.30
1.84
0.75
0.77
0.84
1.74
0.81
1.75
2.33
1.68
0.77
1.20

1.85
3.37
0.64
0.21
1.75
1.97
1.01
1.52
2.32
0.98
0.50
1.81

2.55
1.43
1.59
1.34
0.82
3.59
1.05
1.92
1.21
2.16
0.14
2.15

1.25
0.96
0.98
1.63
1.33
1.39
1.25
1.76
1.96
1.74
0.75
1.31

1.73
1.47
1.27
0.85
1.13
2.11
1.55
2.63
1.25
2.68
0.66
1.74

1.41
1.28
0.85
0.31
1.16
1.76
0.54
2.07
2.26
2.03
0.26
1.19

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 .....................................................

1.71
3.15
0.81
0.76
0.86
2.06
0.66
1.43
2.22
0.91
0.56
1.39

1.81
0.00
0.00
0.00
1.98
0.31
2.21
2.10
2.11
2.03
0.03
2.00

1.95
1.91
0.56
0.39
0.75
2.69
0.34
2.09
3.04
1.66
1.10
1.42

1.20
4.12
1.26
1.08
0.49
0.99
1.35
0.73
1.10
0.71
0.57
1.05

1.62
3.05
0.85
0.97
0.61
1.81
0.74
0.67
1.80
0.54
0.38
1.31

1.94
6.08
0.64
0.43
1.47
2.02
0.88
0.96
2.05
0.24
0.38
1.87

3.17
3.35
2.60
6.79
0.13
4.64
0.73
0.94
1.19
0.85
0.11
1.97

0.82
2.28
0.70
3.15
0.14
0.64
1.21
0.49
0.76
0.47
0.35
0.77

0.99
2.16
1.23
0.77
0.57
0.84
1.16
0.78
0.70
0.79
0.52
0.95

1.60
3.00
0.58
0.47
0.87
2.05
0.54
0.83
2.03
0.59
0.21
1.15

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 .....................................................

0.23
0.36
0.09
0.12
0.47
0.21
0.54
2.50
4.06
1.52
0.25
0.59

1.80
0.00
0.00
0.00
1.90
1.52
4.54
4.17
4.16
4.24
0.01
3.95

0.39
0.25
0.04
0.04
0.49
0.44
0.35
2.80
3.36
2.56
0.06
0.76

0.09
0.38
0.11
0.15
0.07
0.10
0.69
0.64
2.07
0.55
0.00
0.22

0.22
0.38
0.11
0.19
0.36
0.20
0.44
1.16
3.37
0.90
0.54
0.35

0.27
0.80
0.04
0.02
0.82
0.20
0.74
3.28
7.07
0.56
0.42
0.40

0.09
0.06
0.01
0.00
0.16
0.09
2.48
1.65
2.70
1.29
0.02
0.87

0.03
0.10
-0.03
0.00
0.09
0.05
0.26
0.90
3.49
0.50
0.86
0.29

0.07
0.14
0.08
0.10
0.05
0.06
0.49
0.71
1.96
0.67
0.00
0.21

0.16
0.14
0.04
0.01
0.42
0.11
0.38
1.60
4.03
1.14
0.24
0.39

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

$4,780.6
628.9
968.4
202.7
607.4
2,245.3
1,440.3
1,059.1
422.5
636.7
628.6
7,908.7

$1.6
0.0
0.0
0.0
1.4
0.2
46.6
300.8
266.0
34.8
19.6
368.5

$484.6
9.8
26.6
11.8
96.3
288.2
321.0
224.1
70.6
153.5
208.2
1,237.8

$58.8
5.8
16.1
1.0
1.1
15.3
14.8
6.5
0.4
6.1
24.9
105.0

$2,201.6
502.6
711.9
115.9
191.2
641.3
663.2
228.1
23.8
204.2
169.3
3,262.2

$882.3
24.6
34.5
42.0
101.6
678.9
15.7
40.0
16.0
24.0
5.7
943.6

$36.2
0.8
3.7
0.2
9.9
21.5
4.3
34.9
9.0
25.9
1.0
76.5

$5.4
0.4
1.5
0.1
0.1
3.1
1.1
1.7
0.2
1.6
0.8
9.1

$43.9
3.0
10.2
0.7
1.7
25.2
6.5
7.7
0.3
7.4
4.7
62.8

$1,066.3
82.0
164.1
31.0
204.1
571.7
367.0
215.4
36.3
179.1
194.5
1,843.2

45.3
4.8
23.9
0.3
16.1
0.3

18.1
1.5
11.4
0.4
3.4
0.4

125.3
16.2
46.8
8.3
50.0
3.7

1,937.0
34.0
156.8
77.5
1,130.7
1.1

Memo: Other Real Estate Owned (in millions)
All other real estate owned ...............................................
12,138.3
N/M
1,060.3
208.0
6,232.5
2,530.1
Construction and development ......................................
2,224.0
0.0
0.0
64.2
1,972.6
130.7
Nonfarm nonresidential .................................................
1,526.5
0.0
11.0
66.7
1,171.4
38.5
Multifamily residential real estate ..................................
361.9
0.0
0.0
5.9
247.1
22.4
1-4 family residential .....................................................
6,643.1
1.2
544.3
48.1
2,549.9
2,299.5
Farmland .......................................................................
68.7
0.0
0.0
22.8
40.2
0.2
* See Table IV-A (page 8) for explanations.
** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.

FDIC QUARTERLY

10

2008, VOLUME 2, NO. 1

Quarterly Banking Profile
TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Size Distribution
December 31, 2007

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

Geographic Regions*
Greater
than $10
Billion

New York

Atlanta

Chicago

Kansas
City

Dallas

San
Francisco

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

1.58
1.83
0.78
0.56
1.14
2.11
0.73
2.07
2.32
1.90
0.47
1.40

1.71
1.86
1.32
1.29
0.94
2.23
1.46
2.79
2.05
2.81
0.73
1.66

1.32
1.90
0.92
0.89
0.95
1.55
1.14
2.00
2.50
1.96
0.65
1.31

1.11
1.63
0.66
0.94
0.81
1.32
0.98
2.20
2.42
2.06
0.70
1.16

1.74
1.90
0.74
0.37
1.18
2.28
0.64
2.05
2.31
1.87
0.43
1.45

1.20
1.81
1.18
0.39
0.77
1.24
1.07
2.24
2.31
2.12
0.51
1.35

1.56
1.59
0.53
0.68
1.30
2.07
0.49
1.86
2.78
1.72
0.37
1.31

2.00
2.57
1.01
1.43
0.92
2.92
0.87
1.87
2.12
1.79
0.72
1.60

1.16
1.65
0.67
0.73
1.19
1.35
1.00
2.59
2.26
2.89
0.34
1.26

1.40
1.43
0.73
0.67
0.73
2.34
0.66
1.72
1.21
1.84
0.70
1.25

1.77
1.86
0.47
0.27
1.42
2.52
0.52
2.00
2.42
1.70
0.24
1.47

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

1.71
3.15
0.81
0.76
0.86
2.06
0.66
1.43
2.22
0.91
0.56
1.39

1.27
2.27
1.27
1.02
0.64
1.17
1.37
0.95
1.06
0.95
0.60
1.19

1.32
2.98
0.89
1.02
0.55
0.96
1.08
0.61
1.44
0.54
0.51
1.22

1.53
3.05
0.81
1.47
0.60
1.40
0.82
1.06
2.02
0.49
0.43
1.34

1.84
3.31
0.74
0.48
0.90
2.31
0.58
1.51
2.24
0.98
0.58
1.43

1.17
2.82
1.06
0.41
0.53
1.13
1.09
1.77
2.26
0.90
0.68
1.25

1.48
2.89
0.57
0.88
1.00
1.58
0.49
0.84
2.33
0.62
0.17
1.16

2.23
4.12
1.21
2.35
0.76
2.81
0.60
0.95
1.81
0.64
0.59
1.55

2.35
3.10
0.76
0.61
0.71
4.28
0.86
1.35
1.88
0.90
0.23
1.70

1.51
2.27
0.75
1.24
0.33
2.00
0.66
0.58
1.10
0.46
0.51
1.22

1.83
3.50
0.44
0.29
1.14
2.37
0.56
1.93
2.50
1.53
1.18
1.57

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 ...........................................

0.23
0.36
0.09
0.12
0.47
0.21
0.54
2.50
4.06
1.52
0.25
0.59

0.12
0.29
0.10
0.21
0.19
0.11
0.58
0.67
2.44
0.64
0.14
0.23

0.14
0.33
0.08
0.13
0.14
0.11
0.50
1.02
5.28
0.69
0.28
0.24

0.21
0.42
0.11
0.36
0.28
0.12
0.53
2.09
3.69
1.27
0.32
0.41

0.26
0.35
0.09
0.04
0.51
0.23
0.54
2.64
4.08
1.63
0.25
0.68

0.10
0.28
0.07
0.01
0.22
0.08
0.98
3.33
4.22
1.78
0.21
0.90

0.19
0.31
0.06
0.31
0.46
0.13
0.33
1.31
4.00
0.92
0.32
0.33

0.33
0.51
0.14
0.31
0.40
0.35
0.31
1.52
3.44
0.84
0.35
0.46

0.28
0.41
0.07
0.07
0.68
0.20
0.94
2.94
4.27
1.78
0.13
0.78

0.18
0.31
0.12
0.22
0.26
0.12
0.33
1.08
2.45
0.77
0.37
0.29

0.29
0.36
0.09
0.04
0.64
0.31
0.65
3.20
4.11
2.60
0.12
0.76

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

$4,780.6
628.9
968.4
202.7
607.4
2,245.3
1,440.3
1,059.1
422.5
636.7
628.6
7,908.7

$77.4
10.8
22.1
1.7
2.5
31.4
16.7
9.0
0.1
8.9
11.9
115.0

$717.5
147.0
243.5
27.5
33.7
238.5
123.0
49.4
3.6
45.8
36.2
926.1

$716.1
165.1
233.8
40.9
42.0
220.4
153.6
79.2
29.5
49.7
36.0
984.9

$3,269.6
306.0
469.1
132.5
529.2
1,755.0
1,147.0
921.6
389.2
532.4
544.5
5,882.6

$805.9
65.1
182.4
47.5
58.3
448.2
203.3
291.9
186.0
105.9
94.4
1,395.6

$1,374.4
204.0
249.7
30.4
193.0
676.1
345.7
179.5
23.5
156.0
159.7
2,059.2

$870.0
122.6
193.2
29.7
152.9
355.6
349.3
175.8
46.1
129.7
164.4
1,559.4

$384.1
52.1
88.2
8.8
75.9
140.9
121.6
102.9
48.0
54.8
72.5
681.0

$330.2
87.8
104.8
6.9
21.6
98.7
102.1
40.8
7.8
33.0
20.3
493.3

$1,016.1
97.3
150.1
79.3
105.7
525.9
318.4
268.3
111.2
157.1
117.3
1,720.2

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

12,138.3
2,224.0
1,526.5
361.9
6,643.1
68.7

356.1
70.0
115.2
13.1
143.7
13.6

2,616.9
1,021.6
667.6
100.3
792.6
32.4

1,798.3
712.2
307.2
95.2
670.5
11.2

7,367.0
420.2
436.6
153.3
5,036.4
11.5

951.3
201.1
148.5
30.8
540.4
15.0

3,028.1
782.4
367.0
114.4
1,720.7
6.7

2,809.0
348.2
393.5
121.5
1,399.0
8.7

1,763.9
299.9
250.6
29.5
637.4
9.1

1,156.0
391.7
292.1
23.7
398.7
27.2

2,430.0
200.8
74.9
42.0
1,946.9
1.9

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

FDIC QUARTERLY

11

2008, VOLUME 2, NO. 1

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

4th Quarter
2007

3rd Quarter
2007

2nd Quarter
2007

1st Quarter
2007

4th Quarter
2006

%Change
06:4-07:4

Less than
$100 Million

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

Greater than
$10 Billion

ALL DERIVATIVE HOLDERS
1,042
1,025
1,058
1,056
1,014
Number of institutions reporting derivatives ……………………………
Total assets of institutions reporting derivatives ……………………… $9,826,802
$9,460,260
$9,147,067
$8,871,745
$8,834,288
Total deposits of institutions reporting derivatives ……………………
6,324,177
6,031,920
5,900,355
5,750,636
5,751,266
Total derivatives ………………………………………………………… 164,780,773 173,284,358 153,678,084 144,098,922 132,182,732

2.8
11.2
10.0
24.7

67
$4,954
3,969
94

632
$275,039
216,148
17,670

264
79
$821,793 $8,725,016
588,151
5,515,908
101,276 164,661,733

Derivative Contracts by Underlying Risk Exposure
Interest rate ……………………………………………..………………… 129,587,559 138,789,177 123,340,595 116,751,425 107,434,665
Foreign exchange* ……………………………………………………… 17,174,474
16,696,567
15,117,713
14,167,853
12,564,160
Equity ……………………………………………………………………… 2,533,531
2,783,712
2,491,034
2,173,375
2,270,942
1,073,116
1,025,685
951,725
840,505
893,310
Commodity & other (excluding credit derivatives) ……………………
Credit ………………………………………………..…………………… 14,412,094
13,989,217
11,777,017
10,165,765
9,019,655
Total ………………………………………………..……………………… 164,780,773 173,284,358 153,678,084 144,098,922 132,182,732

20.6
36.7
11.6
20.1
59.8
24.7

75
8
11
0
0
94

17,256
30
186
0
198
17,670

83,520 129,486,707
5,170 17,169,265
12,162
2,521,172
207
1,072,908
216 14,411,679
101,276 164,661,733

Derivative Contracts by Transaction Type
Swaps ………………………………………………..…………………… 103,100,934 111,410,085
95,320,189
88,006,970
81,339,865
Futures & forwards ………………………………………………..……… 18,967,549
17,202,716
16,198,687
15,307,497
14,881,758
Purchased options ………………………………………………..……… 13,784,021
14,562,615
14,298,899
14,737,699
12,944,893
Written options ………………………………………………..………… 13,956,210
15,033,429
14,773,476
14,601,673
13,332,489
Total ………………………………………………..……………………… 149,808,714 158,208,844 140,591,251 132,653,840 122,499,005

26.8
27.5
6.5
4.7
22.3

19
18
5
44
86

10,639
1,621
3,109
2,088
17,457

59,484 103,030,791
16,017 18,949,894
20,357 13,760,550
4,884 13,949,194
100,742 149,690,429

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 ………………………………………

33,902
6,569
-18,947
1,422
-212,447
222,426

30,716
3,119
-20,872
1,664
-104,120
110,905

20,001
5,661
-24,473
1,946
-22,960
23,824

24,423
74,088
-18,499
22,530
9,032
-9,668

23,275
5,324
-17,845
2,658
31,583
-32,745

45.7
23.4
6.2
-46.5
-772.7
-779.3

0
0
0
0
0
0

45
0
10
0
0
0

58
-7
59
0
-16
7

33,799
6,576
-19,016
1,421
-212,431
222,419

39,085,024
37,222,439
27,722,186
11,592,113
1,604,898
618,960
473,413
297,419
70,485
288,125
337,075
26,387

48,917,897
36,310,944
27,875,202
10,094,603
1,831,220
718,390
464,820
330,227
95,900
278,442
308,298
27,617

39,403,807
33,846,133
24,588,177
8,948,450
1,667,700
676,071
442,652
283,520
62,916
280,133
261,410
27,273

32,457,730
33,802,189
24,684,533
8,372,488
1,571,241
624,415
397,237
236,563
74,332
271,647
200,458
23,931

29,551,704
31,385,640
23,273,618
7,690,210
1,415,846
592,897
341,346
220,856
44,858
235,107
272,314
21,581

32.3
18.6
19.1
50.7
13.4
4.4
38.7
34.7
57.1
22.6
23.8
22.3

11
9
12
0
0
0
0
5
0
0
0
0

2,067
10,311
2,552
7
4
5
22
74
1
0
0
0

23,077
27,112
27,038
3,801
17
10
148
400
37
158
27
0

39,059,868
37,185,007
27,692,583
11,588,305
1,604,878
618,945
473,242
296,940
70,447
287,967
337,048
26,387

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 (%) ………

45.6
109.8
155.4

38.0
115.1
153.1

30.7
113.4
144.1

28.3
106.8
135.1

29.2
97.7
126.9

0.2
0.1
0.3

0.4
0.4
0.8

1.9
0.9
2.7

52.8
127.5
180.3

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

156.0

125.0

6.0

-3.0

-25.0

-724.0

1.0

0.0

155.0

166
8,307,238
5,354,783

159
7,977,733
5,083,233

167
7,640,639
4,917,948

156
7,388,068
4,770,665

147
7,223,404
4,712,089

12.9
15.0
13.6

11
760
599

45
22,358
17,483

57
250,499
175,641

53
8,033,621
5,161,060

Derivative Contracts by Underlying Risk Exposure
Interest rate ………………………………………………..……………… 127,126,919 136,068,953 120,820,791 114,003,913 104,692,154
Foreign exchange ………………………………………………..……… 16,483,269
15,489,462
13,683,371
12,769,131
11,788,161
Equity ………………………………………………..……………………
2,515,242
2,767,663
2,474,617
2,168,932
2,266,778
Commodity & other ………………………………………………..……… 1,072,230
1,024,998
951,236
840,237
893,087
Total ………………………………………………..……………………… 147,197,659 155,351,076 137,930,014 129,782,212 119,640,180

21.4
39.8
11.0
20.1
23.0

9
0
0
0
9

304
12
1
0
317

-591.6
16.1
-82.6
5,665.8
-358.0

0
0
0
0
0

0
0
0
0
0

13
9
0
1
23

-5,671
1,864
211
-6,401
-9,997

0.0
0.0

0.0
-0.4

0.7
7.3

-7.4
-256.0

56
4,160
3,336

591
254,949
200,320

237
749,334
536,933

75
8,643,139
5,463,628

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

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

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

-5,658
1,873
211
-6,400
-9,974

1,364
2,005
-92
-1,017
2,260

2,939
1,265
1,020
907
6,131

2,405
1,830
1,732
1,053
7,020

1,151
1,613
1,214
-111
3,866

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

-7.2
-233.9

1.5
12.6

4.1
27.0

4.9
33.0

3.0
19.6

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

959
9,651,581
6,204,217

949
9,300,460
5,923,372

971
8,967,342
5,776,699

969
8,637,459
5,582,898

935
8,604,674
5,589,964

2.6
12.2
11.0

30,489 127,096,117
4,486 16,478,771
347
2,514,894
148
1,072,082
35,470 147,161,864

Derivative Contracts by Underlying Risk Exposure
Interest rate ………………………………………………..……………… 2,460,640
2,720,224
2,519,804
2,747,512
2,742,511
-10.3
66
16,952
53,031
2,390,591
Foreign exchange ………………………………………………..………
131,240
120,808
124,526
119,405
111,928
17.3
0
4
366
130,870
Equity ………………………………………………..……………………
18,289
16,048
16,417
4,443
4,164
339.2
11
185
11,815
6,279
Commodity & other ………………………………………………..………
886
687
489
268
223
297.3
0
0
59
826
Total notional amount ………………………………………………..…… 2,611,055
2,857,768
2,661,237
2,871,628
2,858,826
-8.7
77
17,140
65,272
2,528,566
All line items are reported on a quarterly basis.
*Include spot foreign exchange contracts. All other references to foreign exchange contracts in which notional values or fair values are reported exclude spot foreign exchange contracts.
** Derivative contracts subject to the risk-based capital requirements for derivatives.
*** The reporting of credit losses on derivatives is applicable to all banks filing the FFIEC 031 report form and to those banks filing the FFIEC 041 report form that have $300 million or more in total assets.

FDIC QUARTERLY

12

2008, VOLUME 2, NO. 1

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

4th Quarter 3rd Quarter 2nd Quarter 1st Quarter 4th Quarter %Change
2007
2007
2007
2007
2006
06:4-07:4

Assets Sold and Securitized with Servicing Retained or with Recourse or
Other Seller-Provided Credit Enhancements
124
122
126
126
Number of institutions reporting securitization activities …………………………………………
Outstanding Principal Balance by Asset Type
1-4 family residential loans …………………………………………………………………..…… $1,129,377 $1,111,554 $1,119,076 $1,088,151
Home equity loans …………………………………………………………………………………
9,353
9,894
10,640
9,339
Credit card receivables ……………………………………………………………………...….…
389,502
379,662
372,481
367,796
Auto loans ……………………………………………………………………………………..……
9,019
10,433
12,547
14,132
Other consumer loans ……………………………………………………………………....….…
28,542
29,386
27,396
27,737
Commercial and industrial loans …………………………………………………………………
14,148
15,862
13,193
12,039
All other loans, leases, and other assets* ………………………………………………....……
193,875
184,941
162,434
150,404
Total securitized and sold ……………………………………………………………………..……. 1,773,817 1,741,732 1,717,767 1,669,598
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 …………………………………………………………………

Less than
$100 Million

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

Greater than
$10 Billion

123

0.8

14

49

20

41

$739,041
8,905
362,467
16,263
28,673
10,543
144,582
1,310,475

52.8
5.0
7.5
-44.5
-0.5
34.2
34.1
35.4

$44
0
0
0
0
0
1
45

$326
0
2,939
0
7
39
79
3,389

$9,074
232
11,713
291
0
5,322
681
27,313

$1,119,933
9,120
374,850
8,728
28,536
8,787
193,115
1,743,069

6,891
2,000
19,196
380
1,379
282
3,733
33,860
4,686

6,856
2,336
19,120
426
2,114
399
4,578
35,829
5,095

6,502
2,402
18,711
555
1,768
314
1,053
31,304
5,667

6,047
2,354
17,685
628
1,861
311
1,052
29,937
6,116

6,580
2,332
19,182
724
1,882
348
964
32,013
6,503

4.7
-14.2
0.1
-47.5
-26.7
-19.0
287.2
5.8
-27.9

17
0
0
0
0
0
1
18
0

4
0
167
0
0
0
26
197
0

35
10
601
12
0
71
42
771
0

6,836
1,990
18,428
368
1,379
211
3,663
32,875
4,686

2.7
0.8
2.2
2.5
3.1
1.0
0.1
2.3

2.7
0.7
2.1
2.0
2.8
1.0
0.1
2.3

2.6
0.6
1.9
1.7
2.8
0.5
0.1
2.1

2.1
0.7
1.9
1.5
2.4
0.7
0.1
1.9

3.0
0.7
2.0
1.7
3.0
0.7
0.2
2.4

Blank
Blank
Blank
Blank
Blank
Blank
Blank
Blank

2.7
0.0
0.0
0.0
0.0
0.0
0.0
2.6

0.0
0.0
1.2
0.0
0.0
0.0
0.0
1.1

10.3
2.4
1.6
1.1
0.0
2.3
0.2
4.6

2.6
0.8
2.2
2.5
3.1
0.2
0.1
2.2

1.5
0.5
1.9
0.3
2.4
0.9
0.1
1.5

1.2
0.4
1.7
0.2
2.1
0.7
0.1
1.2

1.3
0.3
1.6
0.2
2.1
0.6
0.2
1.2

1.1
0.4
1.8
0.2
2.0
0.6
0.1
1.2

1.2
0.5
1.7
0.3
2.1
0.7
0.2
1.2

Blank
Blank
Blank
Blank
Blank
Blank
Blank
Blank

0.3
0.0
0.0
0.0
0.0
0.0
0.0
0.3

0.0
0.0
1.1
0.0
0.0
0.0
1.9
1.0

23.8
1.1
1.3
0.1
0.0
2.0
0.0
8.9

1.4
0.5
1.9
0.4
2.4
0.3
0.1
1.4

0.1
0.2
4.4
1.2
1.3
2.0
0.0
1.1

0.0
0.1
3.3
0.8
1.1
1.3
0.0
0.8

0.0
0.1
2.2
0.5
0.7
0.7
0.0
0.5

0.0
0.1
1.1
0.3
0.4
0.4
0.0
0.3

0.0
0.3
3.8
0.7
1.5
1.3
0.0
1.1

Blank
Blank
Blank
Blank
Blank
Blank
Blank
Blank

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
3.3
0.0
0.0
0.0
0.0
2.9

3.1
1.6
3.0
0.5
0.0
4.2
0.0
3.1

0.0
0.2
4.5
1.2
1.3
0.7
0.0
1.0

347
86,748
7,671

494
77,451
6,018

651
73,405
2,843

671
61,569
2,863

869
75,225
2,596

-60.1
15.3
195.5

0
0
0

0
251
0

0
4,699
816

347
81,798
6,855

9
436
2

10
374
6

10
327
9

10
281
1

10
322
5

-10.0
35.4
-60.0

0
0
0

0
62
0

0
374
0

9
0
2

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

757

749

738

731

716

5.7

154

455

103

45

57,554
674
4,985
24,082
87,296

57,407
775
5,302
21,509
84,993

55,156
603
7,708
8,035
71,503

55,719
1,906
8,198
8,103
73,926

55,777
708
6,668
6,981
70,133

3.2
-4.8
-25.2
245.0
24.5

939
1
0
1
942

6,857
60
172
89
7,178

2,719
13
390
419
3,540

47,040
600
4,423
23,573
75,636

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

14,746
605
3,650
6,968
25,969

15,866
742
3,671
6,447
26,726

14,539
575
4,453
2,383
21,951

13,826
1,871
4,543
2,428
22,668

13,213
663
4,499
2,530
20,904

11.6
-8.7
-18.9
175.4
24.2

98
1
0
1
100

1,422
6
162
14
1,604

1,834
4
390
107
2,335

11,392
595
3,098
6,845
21,930

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

47
2,841
10,314

49
1,477
8,242

50
1,375
14,093

47
1,348
5,827

47
1,135
5,857

0.0
150.3
76.1

24
7
0

12
113
0

4
91
0

7
2,630
10,314

7,715

61,590

121,529

3,611,359

2
0
66
0
0.50

0
0
128
60
1.50

130
0
138
256
2.50

22,094
374,260
2,373
4,691
8.00

Other
Assets serviced for others** ………………………………………………………………………… 3,802,194 3,648,511 3,570,284 3,496,744 3,393,204
12.1
Asset-backed commercial paper conduits
Credit exposure to conduits sponsored by institutions and others ……………………………
22,226
22,592
22,211
21,404
20,714
7.3
Unused liquidity commitments to conduits sponsored by institutions and others ………...…
374,260
365,850
364,656
327,395
306,435
22.1
2,705
3,635
5,330
3,601
2,162
25.1
Net servicing income (for the quarter) …………………………………………………………......
Net securitization income (for the quarter) …………………………………………………......…
5,007
5,812
5,355
4,964
2,407
108.0
Total credit exposure to Tier 1 capital (%)*** ………………………………………………......…
6.3
6.5
5.6
5.7
5.8
Blank
*Line item titled "All other loans and all leases" for quarters prior to March 31, 2006.
**The amount of financial assets serviced for others, other than closed-end 1-4 family residential mortgages, is reported when these assets are greater than $10 million.
***Total credit exposure includes the sum of the three line items titled "Total credit exposure" reported above.

FDIC QUARTERLY

13

2008, VOLUME 2, NO. 1

TABLE VIII-A. Trust Services (All FDIC-Insured Institutions)
All Insured Institutions

(dollar figures in millions)
Number of institutions reporting .......................................................................
Number of institutions with fiduciary powers ....................................................
Commercial banks ........................................................................................
Savings institutions .......................................................................................
Number of institutions exercising fiduciary powers ..........................................
Commercial banks ........................................................................................
Savings institutions .......................................................................................
Number of institutions reporting fiduciary activity .............................................
Commercial banks ........................................................................................
Savings institutions .......................................................................................
Fiduciary and related assets - managed assets
Personal trust and agency accounts ................................................................
Noninterest-bearing deposits ........................................................................
Interest-bearing deposits ...............................................................................
U.S. Treasury and U.S. Government agency obligations .............................
State, county and municipal obligations ........................................................
Money market mutual funds ..........................................................................
Other short-term obligations ..........................................................................
Other notes and bonds ..................................................................................
Common and preferred stocks ......................................................................
Real estate mortgages ..................................................................................
Real estate ....................................................................................................
Miscellaneous assets ....................................................................................
Retirement related trust and agency accounts:
Employee benefit - defined contribution ........................................................
Employee benefit - defined benefit ................................................................
Other retirement accounts .............................................................................
Corporate trust and agency accounts ..............................................................
Investment management agency accounts ......................................................
Other fiduciary accounts ..................................................................................
Total managed fiduciary accounts:
Assets ...........................................................................................................
Number of accounts ......................................................................................
Fiduciary and related assets - non-managed assets
Personal trust and agency accounts ................................................................
Retirement related trust and agency accounts:
Employee benefit - defined contribution ........................................................
Employee benefit - defined benefit ................................................................
Other retirement accounts .............................................................................
Corporate trust and agency accounts ..............................................................
Other fiduciary accounts ..................................................................................
Total non-managed fiduciary accounts:
Assets ...........................................................................................................
Number of accounts ......................................................................................
Custody and safekeeping accounts:
Assets ...........................................................................................................
Number of accounts ......................................................................................
Fiduciary and related services income
Personal trust and agency accounts ................................................................
Retirement related trust and agency accounts:
Employee benefit - defined contribution ........................................................
Employee benefit - defined benefit ................................................................
Other retirement accounts .............................................................................
Corporate trust and agency accounts ..............................................................
Investment management agency accounts ......................................................
Other fiduciary accounts ..................................................................................
Custody and safekeeping accounts .................................................................
Other fiduciary and related services income ....................................................
Total gross fiduciary and related services income ...........................................
Less: Expenses .............................................................................................
Less: Net losses from fiduciary and related services ....................................
Plus: Intracompany income credits for fiduciary and related services ..........
Net fiduciary and related services income .......................................................

Dec 31
% Change Less than
2004
2006-2007 $100 Million
8,976
-1.7
3,440
2,573
-2.3
559
2,369
-2.4
537
204
-0.5
22
1,897
-2.4
356
1,740
-2.5
337
157
-1.3
19
1,820
-2.7
333
1,670
-2.8
314
150
-2.1
19

Asset Size Distribution
$100 Million $1 Billion
to
Greater than
to
$10 Billion $10 Billion
$1 Billion
4,425
549
119
1,431
335
82
1,327
281
68
104
54
14
1,072
283
72
995
237
62
77
46
10
1,015
275
69
943
232
60
72
43
9

Dec 31
2007
8,533
2,407
2,213
194
1,783
1,631
152
1,692
1,549
143

Dec 31
2006
8,680
2,463
2,268
195
1,826
1,672
154
1,739
1,593
146

Dec 31
2005
8,833
2,515
2,312
203
1,866
1,708
158
1,791
1,642
149

801,832
-55
11,573
31,725
67,161
51,290
21,942
25,429
523,469
1,531
34,269
33,474

764,549
-4
9,368
32,866
70,908
38,133
9,566
26,894
514,944
1,604
31,876
27,937

735,821
364
8,012
34,664
73,332
33,640
8,601
27,268
491,075
1,476
29,721
27,520

740,141
553
7,507
34,519
77,554
33,442
7,168
31,964
496,357
1,495
26,812
22,770

4.9
N/M
23.5
-3.5
-5.3
34.5
129.4
-5.4
1.7
-4.6
7.5
19.8

10,663
13
251
551
890
944
32
584
6,080
25
685
609

71,742
115
2,410
4,589
5,810
4,387
420
2,211
41,298
238
4,110
6,131

64,841
54
1,613
5,084
5,394
4,480
254
1,979
38,422
195
3,718
3,649

654,586
-236
7,298
21,501
55,067
41,479
21,236
20,655
437,670
1,073
25,756
23,086

329,048
1,060,203
414,981
25,247
1,592,442
236,787

307,193
1,153,825
309,451
31,457
1,505,170
320,331

226,768
1,067,293
249,466
42,634
1,311,707
266,515

206,460
1,067,158
211,635
27,650
1,287,407
203,554

7.1
-8.1
34.1
-19.7
5.8
-26.1

1,255
1,494
6,625
33
27,091
3,764

92,359
12,672
8,723
1,001
93,013
1,938

11,095
46,179
12,588
2,566
65,178
5,419

224,338
999,857
387,046
21,647
1,407,160
225,666

4,460,539
3,337,630

4,391,975
2,998,573

3,900,205
2,915,478

3,744,006
3,994,184

1.6
11.3

50,926
71,461

281,448
217,422

207,865
194,463

3,920,299
2,854,284

355,027

309,352

286,571

273,147

14.8

2,614

20,560

15,361

316,492

1,824,711
5,333,474
2,097,068
4,427,690
3,367,009

1,779,447
4,542,943
2,121,450
2,961,810
3,170,657

1,525,454
3,567,201
2,107,183
2,567,357
2,580,461

1,325,041
3,415,480
1,538,809
2,155,927
2,447,526

2.5
17.4
-1.1
49.5
6.2

5,815
14,948
2,442
5,227
4,501

490,374
17,384
734,417
12,567
6,515

77,232
75,156
38,757
637,748
12,261

1,251,291
5,225,987
1,321,452
3,772,148
3,343,732

17,404,979 14,885,658 12,634,226 11,155,930
16,425,153 16,039,580 15,695,352 22,042,098

16.9
2.4

35,547 1,281,817
28,764 11,752,525

58,167,932 48,360,083 36,798,168 33,496,968
11,335,508 11,207,692 11,513,512 16,220,035

20.3
1.1

267,264
562,128

934,499
9,031,550

856,514 15,231,101
513,891 4,129,973
840,542 56,125,627
349,862 1,391,968

5,767

5,147

5,244

4,878

12.0

82

374

433

4,877

1,183
1,808
1,034
2,439
4,159
2,156
8,166
2,420
29,292
20,502
360
4,543
12,809

1,305
1,949
871
2,054
3,683
1,440
8,011
1,855
26,142
19,094
155
2,897
9,962

1,187
1,789
753
1,877
3,562
1,350
7,167
1,577
24,781
17,266
190
1,302
8,424

1,173
1,465
710
2,350
3,178
992
5,945
2,431
23,130
16,639
202
1,135
7,417

-9.3
-7.2
18.7
18.7
12.9
49.7
1.9
30.5
12.0
7.4
132.3
56.8
28.6

10
16
36
204
100
4
165
7
633
236
1
1
384

288
101
69
30
407
22
467
116
1,997
1,458
1
29
443

119
87
113
421
279
24
435
91
2,031
1,494
7
1,479
1,981

765
1,603
816
1,784
3,373
2,106
7,099
2,207
24,631
17,313
351
3,035
10,001

Collective investment funds and common trust funds (market value)
Domestic equity funds ...................................................................................
448,225
International/global equity funds ...................................................................
206,551
Stock/bond blend funds .................................................................................
215,849
Taxable bond funds .......................................................................................
214,145
Municipal bond funds ....................................................................................
8,328
Short term investments/money market funds ................................................
395,025
Specialty/other funds .....................................................................................
121,628
Total collective investment funds ..................................................................... 1,609,751

449,079
171,114
217,734
185,398
8,695
352,341
96,902
1,481,262

478,087
129,572
77,526
248,050
60,308
365,759
102,112
1,461,414

482,294
119,084
69,116
243,403
11,127
386,342
93,594
1,404,959

-0.2
20.7
-0.9
15.5
-4.2
12.1
25.5
8.7

6,566
1,171
1,882
943
4
2,655
549
13,770

16,668
3,390
745
46,454
607
3,197
33,703
104,764

7,752
2,041
2,678
2,376
348
161
1,126
16,482

417,238
199,950
210,543
164,372
7,369
389,013
86,249
1,474,734

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14

2008, VOLUME 2, NO. 1

Quarterly Banking Profile

INSURANCE FUND INDICATORS
I
I
I

Insured Deposits Grow by 1.2 Percent in the Fourth Quarter
DIF Reserve Ratio Is Unchanged at 1.22 Percent
Three Insured Institutions Fail During the Year

From September 30 to December 31, total assets of the
nation’s 8,533 FDIC-insured commercial banks and
savings institutions increased by $331.8 billion (2.6
percent). Total deposits, which increased by $232.8
billion, funded about 70 percent of this asset growth.
During the fourth quarter, total domestic deposits grew
by 2.5 percent, the highest quarterly percentage
increase since the fourth quarter of 2004. Brokered
deposits increased by 12.4 percent, the largest quarterly
percentage increase since the fourth quarter of 2000
when brokered deposits increased by 13.0 percent. Five
institutions accounted for approximately two-thirds of
this growth.

of 2007, insured deposits increased by 3.4 percent,
down from 6.8 percent in 2006. For institutions reporting as of December 31, 2007 and September 30, 2007,
insured deposits increased during the fourth quarter at
5,178 institutions (62 percent), decreased at 3,259
institutions (38 percent) and remained unchanged at
46 institutions.
The Deposit Insurance Fund (DIF) increased by 1.3
percent ($659 million) during the fourth quarter to
$52,413 million. Accrued assessment income added
$239 million to the DIF during the fourth quarter. The
fund received $138 million from unrealized gains on
available for sale securities, and took in $321 million
from interest on securities and other revenue, net of
operating expenses. The DIF was reduced by $39 million in additional provisions for insurance losses. For
the year, the fund balance grew by 4.5 percent, up from
3.2 percent growth in 2006.

Domestic time deposits increased by 2.1 percent, while
other domestic interest-bearing deposits increased by
1.7 percent and domestic non-interest bearing deposits
increased by 5.8 percent. Over the 12 months ending
December 31, total domestic deposits increased by 4.2
percent, with domestic interest-bearing deposits rising
by 5.7 percent but domestic noninterest-bearing
deposits declining by 2.2 percent.

The DIF’s reserve ratio equaled 1.22 percent on
December 31, 2007, unchanged from the previous quarter. During 2007, the reserve ratio increased by one
basis point, from 1.21 percent at year-end 2006.

Over the past year, the share of assets funded by domestic deposits declined from 56 percent to 53 percent. By
contrast, foreign deposits as a percent of total assets
rose during 2007 from 10.1 percent to 11.5 percent,
and Federal Home Loan Bank (FHLB) advances’ share
of asset funding increased from 5.2 percent to 6.2 percent. In 2007, foreign office deposits increased by 25.8
percent ($308.5 billion) and FHLB advances increased
by 30.3 percent ($187.9 billion).

Only one FDIC-insured institution failed during the
fourth quarter of 2007, a small commercial bank. At
the time of failure, this institution had $93 million in
assets and an estimated failure cost of $3 million. For
all of 2007, three FDIC-insured institutions failed with
assets of $2.3 billion and an estimated failure cost of
$120 million. These are the first failures since 2004,
during which four institutions failed.

Estimated insured deposits (including U.S. branches of
foreign banks) increased by 1.2 percent during the
fourth quarter of 2007, compared to nearly flat growth
(0.2 percent increase) for the previous quarter. For all

FDIC QUARTERLY

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

15

2008, VOLUME 2, NO. 1

TABLE I-B. Insurance Fund Balances and Selected Indicators
Deposit Insurance Fund

(dollar figures in millions)
4th Quarter
2007

Beginning Fund Balance*……………………………………

3rd Quarter
2007

2nd Quarter
2007

1st Quarter
2007

4th Quarter
2006

3rd Quarter
2006

2nd Quarter
2006

1st Quarter
2006

4th Quarter
2005

3rd Quarter
2005

$51,754

$51,227

$50,745

$50,165

$49,992

$49,564

$49,193

$48,597

$48,373

$48,023

20
536
227
-65
3

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

239
585
262
39
-2

170
640
243
132
24

140
748
248
-3
1

94
567
239
-73
4

10
476
248
49
5

10
622
237
-50
1

7
665
242
-6
12

5
478
224
-45
349

13
675
252
-19
4

138
659

68
527

-162
482

81
580

-21
173

-18
428

-77
371

-57
596

-235
224

-47
350

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

52,413
4.48

51,754
3.52

51,227
3.36

50,745
3.15

50,165
3.23

49,992
3.35

49,564
3.21

49,193
3.31

48,597
2.29

48,373
2.94

Reserve Ratio (%)……………………………………………

1.22

1.22

1.21

1.20

1.21

1.22

1.23

1.23

1.25

1.26

Estimated Insured Deposits ………………………………… 4,293,201
Percent change from four quarters earlier…………………
3.36

4,243,894
3.51

4,234,835
4.81

4,245,148
6.08

4,153,764
6.75

4,100,013
7.02

4,040,353
7.52

4,001,906
8.50

3,890,941
7.42

3,830,950
7.63

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

7,052,552
6.94

6,879,633
6.84

6,821,486
6.80

6,801,520
8.43

6,594,750
6.76

6,439,326
6.63

6,386,864
8.64

6,272,505
8.15

6,177,429
8.88

6,038,857
9.47

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

8,544

8,571

8,625

8,661

8,692

8,755

8,790

8,803

8,846

8,871

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

DIF Reserve Ratio*
Percent of Insured Deposits

DIF
Balance

6/04

6/04

12/04

6/05

12/05

6/06

1.21

12/06

1.20

6/07

3,890,941

3/06

49,193

4,001,906

49,564

4,040,353

49,992

4,100,013

50,165

4,153,764

50,745

4,245,148

51,227
51,754

4,234,835
4,243,894

12/07

52,413

4,293,201

2005

12/07

3,830,950

48,597

6/06

1.21

48,373

12/05

1.22 1.22

3,757,728

9/05

1.22

48,023

6/07
9/07

1.23 1.23

3,688,562

6/05

1.25

47,617

3/07

1.26

3,622,068

3/05

1.28

3,559,489

47,507

12/06

1.29

3,531,806

46,990

12/04

1.31

46,521

9/04

9/06

1.32 1.32

DIF-Insured
Deposits

2004

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

2007

2006

2003

2002

76

50

52

80

116

136

$22,189

$8,265

$6,607

$28,250

$29,917

$38,927

3

0

0

4

3

11

$2,345

$0

$0

$166

$1,097

$2,558

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

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2008, VOLUME 2, NO. 1

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

Number of
Institutions

Total
Assets

Domestic
Deposits*

Est. Insured
Deposits

Commercial Banks and Savings Institutions
FDIC-Insured Commercial Banks …….............................…………
FDIC-Supervised ………………………….............................……
OCC-Supervised ………………….............................……………
Federal Reserve-Supervised …….............................……………

7,282
4,772
1,632
878

11,176,096
1,874,698
7,782,387
1,519,012

5,806,795
1,370,557
3,590,744
845,494

3,426,148
927,470
1,995,866
502,812

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

1,251
826
425

1,862,669
1,556,670
305,999

1,104,986
892,592
212,394

860,936
696,835
164,101

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

8,533

13,038,765

6,911,780

4,287,084

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

11

16,614

8,886

6,116

Total FDIC-Insured Institutions …...............................…………….

8,544

13,055,379

6,920,667

4,293,201

* Excludes $1.50 trillion in foreign office deposits, which are uninsured.

TABLE IV-B. Distribution of Institutions and Assessment Base Among Risk Categories
Quarter Ending September 30, 2007
(dollar figures in billions)

Risk Category
I - Minimum …………………………………………
I - Middle ……………………………………………
I - Middle ……………………………………………
I - Maximum …………………………………………
II ………………………………………………………
III ……………………………………………………
IV ……………………………………………………

Annual
Rate in
Basis Points

Number of
Institutions

Assessment
Base

Percent of Total
Assessment
Base

2,709
3,088
1,422
859
422
64
7

5
5.01- 6.00
6.01- 6.99
7
10
28
43

Percent of Total
Institutions

31.6%
36.0%
16.6%
10.0%
4.9%
0.7%
0.1%

3,872
2,078
456
296
163
14
1

56.3%
30.2%
6.6%
4.3%
2.4%
0.2%
0.0%

Note: Institutions are categorized based on supervisory ratings, debt ratings and financial data as of September 30, 2007.
Rates do not reflect the application of assessment credits. See notes to users for further information on risk categories and rates.

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2008, VOLUME 2, NO. 1

Notes To Users

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

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

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

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

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

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

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

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2008, VOLUME 2, NO. 1

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

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

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

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

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

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2008, VOLUME 2, NO. 1

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

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

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

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

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Quarterly Banking Profile
assessment rates (in basis points) for each risk category. Supervisory
Group A generally includes institutions with CAMELS composite ratings of 1 or 2; Supervisory Group B generally includes institutions
with a CAMELS composite rating of 3; and Supervisory Group C
generally includes institutions with CAMELS composite ratings of 4
or 5. For purposes of risk-based assessment capital groups, undercapitalized includes institutions that are significantly or critically undercapitalized.
Assessment rates are 3 basis points above the base rate schedule. The
FDIC may adjust rates up or down by 3 basis points from the base rate
schedule without notice and comment, provided that any single
adjustment from one quarter to the next cannot move rates more
than 3 basis points.
For most institutions in Risk Category I, the assessment rate assigned
will be based on a combination of financial ratios and CAMELS component ratings.
For large institutions in Risk Category I (generally those with at least
$10 billion in assets) that have long-term debt issuer ratings, assessment rates will be determined by weighting CAMELS component ratings 50 percent and long-term debt issuer ratings 50 percent. For all
large Risk Category I institutions, additional risk factors will be considered to determine whether assessment rates should be adjusted.
This additional information includes market data, financial performance measures, considerations of the ability of an institution to withstand financial stress, and loss severity indicators. Any adjustment will
be limited to no more than ½ basis point.
Beginning in 2007, each institution is assigned a risk-based rate for a
quarterly assessment period near the end of the quarter following the
assessment period. Payment will generally be due on the 30th day of
the last month of the quarter following the assessment period.
Supervisory rating changes will be effective for assessment purposes as
of the examination transmittal date. For institutions with long-term
debt issuer ratings, changes in ratings will be effective for assessment
purposes as of the date the change was announced.
Risk-weighted assets – assets adjusted for risk-based capital definitions
which include on-balance-sheet as well as off-balance-sheet items
multiplied by risk-weights that range from zero to 100 percent. A
conversion factor is used to assign a balance sheet equivalent amount
for selected off-balance-sheet accounts.
Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity”,
which are reported at amortized cost (book value), and securities designated as “available-for-sale”, reported at fair (market) value.
Securities gains (losses) – realized gains (losses) on held-to-maturity and
available-for-sale securities, before adjustments for income taxes.
Thrift Financial Report (TFR) filers also include gains (losses) on the
sales of assets held for sale.
Seller’s interest in institution’s own securitizations – the reporting bank’s
ownership interest in loans and other assets that have been securitized, except an interest that is a form of recourse or other seller-provided credit enhancement. Seller’s interests differ from the securities
issued to investors by the securitization structure. The principal
amount of a seller’s interest is generally equal to the total principal
amount of the pool of assets included in the securitization structure
less the principal amount of those assets attributable to investors, i.e.,
in the form of securities issued to investors.
Subchapter S Corporation – A Subchapter S corporation is treated as a
pass-through entity, similar to a partnership, for federal income tax
purposes. It is generally not subject to any federal income taxes at the

ing 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”. For all insured commercial banks and for insured savings banks
for which the FDIC is the primary federal regulator, FDIC composite
ratings are used. For all institutions whose primary federal regulator is
the OTS, the OTS composite rating is used.
Recourse – an arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it
has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank’s claim on the asset. If a
bank has no claim on an asset it has sold, then the retention of any
credit risk is recourse.
Reserves for losses – the allowance for loan and lease losses on a consolidated basis.
Restructured loans and leases – loan and lease financing receivables
with terms restructured from the original contract. Excludes restructured loans and leases that are not in compliance with the modified
terms.
Retained earnings – net income less cash dividends on common and
preferred stock for the reporting period.
Return on assets – net income (including gains or losses on securities
and extraordinary items) as a percentage of average total assets. The
basic yardstick of bank profitability.
Return on equity – net income (including gains or losses on securities
and extraordinary items) as a percentage of average total equity capital.
Risk-based capital groups – definition:
(Percent)

Well-capitalized
Adequately
capitalized
Undercapitalized
Significantly
undercapitalized
Critically
undercapitalized

Total
Risk-Based
Capital *

Tier 1
Risk-Based
Capital *

Tier 1
Leverage

Tangible
Equity

>10

and

>6

and

>5

—

>8
>6

and
and

>4
>3

and
and

>4
>3

—
—

<6

or

<3

or

<3

—

—

and

>2

—

<2

*As a percentage of risk-weighted assets.

Risk Categories and Assessment Rate Schedule – The current risk categories and assessment rate schedule became effective January 1, 2007.
Capital ratios and supervisory ratings distinguish one risk category
from another. The following table shows the relationship of risk categories (I, II, III, IV) to capital and supervisory groups as well as the
Supervisory Group

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

FDIC QUARTERLY

A

B

I
5-7 bps

C

II
10 bps

III
28 bps

III
28 bps

IV
43 bps

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Unused loan commitments – includes credit card lines, home equity
lines, commitments to make loans for construction, loans secured by
commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for sale, which are accounted for as derivatives
on the balance sheet.)
Volatile liabilities – the sum of large-denomination time deposits, foreign-office deposits, federal funds purchased, securities sold under
agreements to repurchase, and other borrowings.
Yield on earning assets – total interest, dividend and fee income earned
on loans and investments as a percentage of average earning assets.

corporate level. This can have the effect of reducing institutions’
reported taxes and increasing their after-tax earnings.
Trust assets – market value, or other reasonably available value of
fiduciary and related assets, to include marketable securities, and
other financial and physical assets. Common physical assets held in
fiduciary accounts include real estate, equipment, collectibles, and
household goods. Such fiduciary assets are not included in the
assets of the financial institution.
Unearned income & contra accounts – unearned income for Call Report
filers only.

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