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FDIC Quarterly
Quarterly Banking Profile:
Fourth Quarter 2014
Brick-and-Mortar Banking Remains
Prevalent in an Increasingly
Virtual World

2015, Volume 9, Number 1

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

Chairman

Martin J. Gruenberg

Director, Division of Insurance
and Research

Diane Ellis

Executive Editors

Richard A. Brown
Maureen E. Sweeney

Managing Editors

Matthew Green
Jack Reidhill
Philip A. Shively

Editors

Clayton Boyce
Peggi Gill
Frank Solomon

Publication Manager

Lynne Montgomery

Media Inquiries

(202) 898-6993

FDIC Quarterly
2015, Volume 9, Number 1

Quarterly Banking Profile: Fourth Quarter 2014
FDIC-insured institutions reported aggregate net income of $36.9 billion in the fourth quarter of 2014, down
$2.9 billion (7.3 percent) from earnings of $39.8 billion that the industry reported a year earlier. The decline
in earnings was mainly attributable to a $4.4 billion increase in litigation expenses at a few large banks. More
than half of the 6,509 insured institutions reporting (61.2 percent) had year-over-year growth in quarterly
earnings. The proportion of banks that were unprofitable during the fourth quarter fell to 9.4 percent from
12.7 percent a year earlier. See page 1.

Community Bank Performance
Community banks—which represent 93 percent of insured institutions—reported net income of $4.8 billion
in the fourth quarter, up $1 billion (27.7 percent) from one year earlier. The increase was driven by higher
net operating revenue and lower loan loss provisions. In the fourth quarter of 2014, loan balances at
community banks grew at a faster pace than in the industry, asset quality indicators continued to show
improvement, and community banks accounted for 45 percent of small loans to businesses. See page 15.

Insurance Fund Indicators
Estimated insured deposits increased by 1 percent in the fourth quarter of 2014, and increased by 3.2 percent
for all of 2014. The DIF reserve ratio was 1.01 percent at December 31, 2014, up from 0.88 percent at
September 30, 2014, and 0.79 percent at December 31, 2013. Four FDIC-insured institutions failed during
the quarter. See page 22.

Featured Article:
Brick-and-Mortar Banking Remains Prevalent in an
Increasingly Virtual World
This paper chronicles long-term trends in the number and density of U.S. banking offices from 1935 to 2014.
The study examines the effects that population trends, bank crises, changes in banking laws, and online and
mobile banking have had on the number and density of banking offices, and explores the relationship between
technology and brick-and-mortar bank offices. See page 37.

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

Quarterly Banking Profile

Fourth Quarter 2014

INSURED INSTITUTION PERFORMANCE
Fourth Quarter Net Income of $36.9 Billion Is $2.9 Billion Less Than
a Year Earlier
Full-Year Earnings Fall $1.7 Billion, to $152.7 Billion
Increased Litigation Expenses, Reduced Mortgage Revenues Cause
Decline in Profits
Quarterly Earnings at Community Banks Rise 28 Percent (see page 15)
Pace of Loan Growth Picks Up
“Problem List” Falls Below 300 for First Time Since 2008

■
■
■
■
■
■

Quarterly ROA Falls Below 1 Percent for
First Time in 2 Years

Most Banks Report Increased Revenues

Strengthening loan growth helped lift revenues at most
banks, but higher litigation expenses at a few large
banks and lower noninterest income from sales, securitization, and servicing of residential mortgage loans
caused the industry’s fourth-quarter net income to
fall below the level of a year earlier. A majority of
banks—61 percent—reported improved quarterly
­earnings, while the proportion of unprofitable institutions fell to 9.4 percent from 12.7 percent in fourth
quarter 2013. However, fourth-quarter net income of
$36.9 billion was $2.9 billion (7.3 percent) less than in
fourth quarter 2013, as the four largest banks reported
year-over-year declines in quarterly net income totaling
$4.1 billion. The average return on assets (ROA) fell to
0.96 percent from 1.09 percent the year before. This is
the first time in two years that the average quarterly
ROA has fallen below 1 percent.

Net operating revenue—the sum of net interest income
and total noninterest income—increased by $923 million
(0.6 percent) in the fourth quarter compared with fourth
quarter 2013. Net interest income was $1.1 billion
(1 percent) higher, while total noninterest income was
$160 million (0.3 percent) lower. The increase in net
interest income was attributable to growth in interestbearing assets, which increased 6.2 percent in the
12 months ended December 31. Almost 71 percent of
all banks reported higher net interest income than a
year earlier. The average net interest margin in the
fourth quarter was 3.12 percent, compared with
3.27 percent in fourth quarter 2013 and 3.15 percent in
third quarter 2014. The decline in noninterest income
was primarily the result of a $1.6 billion (30.8 percent)
drop in revenue from the sale, securitization, and servicing of residential mortgage loans. More than half of all
banks (54.4 percent) reported higher noninterest
income than the year-earlier quarter.

Chart 1

Chart 2
Unprofitable Institutions and Institutions
With Increased Earnings

Quarterly Net Income

All FDIC-Insured Institutions

Billions of Dollars
$50
$40

35.2
28.7 28.5

$30

23.8
21.4
20.9
17.4

$20

70

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

60

25.3

50

2.1

$0

-$20

40.4
39.8
40.1
38.2
38.5
37.5
37.3
36.9
36.1
34.8 34.4
34.5

40

$10

-$10

Percentage of All FDIC-Insured Institutions
80

30
-1.7

-6.1
-12.6

20

Securities and Other Gains/Losses, Net
Net Operating Income

10

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
2010
2009
2011
2012
2013
2014

0
2006

2007

2008

2009

2010

2011

2012

2013

2014

Source: FDIC.

Source: FDIC.

FDIC Quarterly

Percentage of Institutions With Quarterly Losses

1

2015, Volume 9, No. 1

Loss Provisions Rise for a Second Consecutive Quarter

Net Charge-Off Rate Falls to an Eight-Year Low

For a second consecutive quarter, the amount that
banks set aside for loan-loss provisions was higher than
a year earlier. Loan-loss provisions totaled $8.2 billion
in the fourth quarter, up $878 million (12 percent)
versus fourth quarter 2013. Noninterest expenses were
$4.9 billion (4.8 percent) higher, as itemized litigation
expenses at a few of the largest banks were $4.4 billion
more than the year-earlier quarter.

Asset-quality indicators continued to improve in the
fourth quarter, as net charge-offs (NCOs) posted a
year-over-year decline for the 18th consecutive quarter.
Fourth-quarter NCOs were $2.2 billion (18.3 percent)
lower than in fourth quarter 2013. The largest improvements were in retail loan categories. Residential mortgage loan NCOs fell by $785 million (49.9 percent),
while charge-offs of home equity lines of credit were
$446 million (39.1 percent) lower, and credit card
NCOs were $356 million (6.4 percent) less than in
fourth quarter 2013. The average net charge-off rate
in the fourth quarter fell to 0.48 percent, from
0.62 percent a year earlier. This is the lowest fourth
quarter NCO rate since 2006.

Full-Year Earnings Post First Decline in Five Years
Full-year 2014 net income totaled $152.7 billion,
$1.7 billion (1.1 percent) less than the industry earned
in 2013. This is the first decline in annual net income
in five years. The full-year ROA was 1.01 percent,
marking the third year in a row that annual ROA
exceeded 1 percent. Reduced revenues from mortgage
sales, securitization, and servicing (down $9.1 billion,
or 35.1 percent), and increased litigation expenses
(up $6.5 billion) were the main contributors to the
drop in full-year earnings. Almost two out of every
three banks (64 percent) reported increased earnings
in 2014, but 7 of the 10 largest banks reported lower
earnings. Although more than two-thirds of all banks
reported higher net operating revenue, the industry
total was essentially unchanged from 2013, as net
interest income rose by $5.5 billion (1.3 percent), and
noninterest income fell by $5.5 billion (2.2 percent).
This is the first time in four years that annual net
interest income has increased. Full-year loan-loss provisions were $2.7 billion (8.4 percent) lower in 2014.
Non­interest expenses were $5.2 billion (1.2 percent)
higher, as the higher litigation expenses were offset in
part by a $3.5 billion (72.9 percent) reduction in goodwill impairment charges.

Noncurrent Loan Rate Falls Below 2 Percent
The amount of loans that were noncurrent (90 days
or more past due or in nonaccrual status) declined for
the 19th quarter in a row. During the three months
ended December 31, noncurrent loan balances fell by
$9.2 billion (5.4 percent). The biggest improvements
occurred in real estate loan portfolios. Non­current
­residential mortgage balances fell by $5.3 billion
(4.9 percent) during the quarter, while noncurrent
nonfarm nonresidential real estate loans declined by
$1.6 billion (9.4 percent), and noncurrent real estate
construction and development loan balances declined
by $887 million (15.1 percent). The percentage of
total loans and leases that were noncurrent fell from
2.11 percent to 1.96 percent during the quarter. This
is the first time since the end of first quarter 2008 that
the noncurrent rate has been below 2 percent.

Chart 3

Chart 4
Quarterly Net Operating Revenue

Billions of Dollars
$180

Percentage of Institutions Reporting Year-Over-Year
Growth in Net Operating Revenue

All FDIC-Insured Institutions

$160

70

$140

Quarterly Noninterest Income

$120

60

$100

50

$80

40

$60

30

Quarterly Net Interest Income

$40

20

$20
$0

All FDIC-Insured Institutions

Percent
80

10
0

12341234123412341234123412341234
2007
2008 2009
2010
2011 2012
2013 2014

Source: FDIC.

FDIC Quarterly

2007

2008

2009

2010

2011

2012

2013

2014

Source: FDIC.

2

2015, Volume 9, No. 1

Quarterly Banking Profile
(4.4 percent). Loan growth was led by commercial and
industrial (C&I) loans, which increased by $42.2 billion
(2.5 percent); credit cards, which posted a seasonal
$35.4 billion (5.2 percent) increase; nonfarm nonresidential real estate loans, which rose by $16.7 billion
(1.5 percent); and real estate construction and development loans, which grew by $7.9 billion (3.4 percent).
Loans to small businesses and farms increased by
$2.9 billion (0.4 percent), as small C&I loans rose by
$4.2 billion (1.4 percent). For the 12 months ended
December 31, total loan and lease balances were up by
5.3 percent, the highest 12-month growth rate since
mid-year 2008. Eighty percent of the increase in
­Treasury securities and 85 percent of the growth in
Federal Reserve balances in the fourth quarter occurred
at banks with assets greater than $250 billion, which are
subject to a new Liquidity Coverage Ratio rule.

The Industry Continues to Release Reserves
Insured institutions reduced their reserves for loan losses
by $2.6 billion (2.1 percent) in the fourth quarter, as
net charge-offs of $9.9 billion exceeded the $8.2 billion
that banks set aside in loan-loss provisions. This is the
19th consecutive quarter that the industry’s loss reserves
have declined. At the end of 2014, reserves totaled
$122.6 billion, the lowest since the end of first quarter
2008. The ratio of reserves to total loans and leases fell
to 1.48 percent at year-end, a seven-year low. Despite
the reduction in reserves, the industry’s coverage ratio
of reserves to noncurrent loans and leases improved for
the ninth quarter in a row, rising from 72.9 percent to
75.4 percent. This is the highest level for the coverage
ratio since third quarter 2008.

Retained Earnings Are More Than Double the
Year-Ago Level

Large Denomination Deposits Continue to Lead
Growth in Liabilities

Equity capital increased by $15.7 billion (0.9 percent)
during the quarter. Retained earnings contributed
$13.9 billion to capital growth, more than twice the
$4.8 billion of a year earlier. Total risk-based capital
rose by $20.3 billion (1.3 percent). At the end of 2014,
98.6 percent of all insured institutions, representing
99.8 percent of industry assets, met or exceeded the
requirements for the highest regulatory capital category,
as defined for Prompt Corrective Action purposes.

Total assets increased by $204.4 billion (1.3 percent),
as loan and lease balances rose by $149.4 billion
(1.8 percent), holdings of U.S. Treasury securities
increased by $59.9 billion (17.3 percent), and balances
at Federal Reserve banks grew by $58.6 billion

Deposits increased by $167.3 billion (1.4 percent) in
the fourth quarter, as balances in domestic offices rose
by $195.2 billion (1.9 percent), and deposits in foreign
offices fell by $27.9 billion (2 percent). Most of the
growth in domestic deposits occurred in accounts with
balances greater than $250,000. Balances in these large
denomination accounts increased by $158.9 billion
(3.1 percent), while balances in domestic accounts of
less than $250,000 rose by $50.3 billion (1 percent).
Time deposits posted their largest quarterly increase
since third quarter 2008, rising by $96.8 billion
(6 percent). Nondeposit liabilities increased by
$22.5 billion (1.1 percent), as banks increased their
Federal Home Loan Bank advances by $21.1 billion
(4.8 percent).

Chart 5

Chart 6

12-Month Loan Growth Rate Rises Above 5 Percent

Quarterly Noninterest Income From Sale, Securitization,
and Servicing of 1-to-4 Family Residential Mortgage Loans
Billions of Dollars
$10

$9
$8

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

8.8

8.0
7.3

7.5

-$5

$7

-$10

$6
4.7

$5

5.3

$4

5.0

-$15

4.8
3.7

3.5

-$20

$3

-$25

$2

-$30

$1
$0

0.9

$0

8.6
7.4

All FDIC-Insured Institutions

Billions of Dollars
$5

All FDIC-Insured Institutions

1

2
3
2012
Source: FDIC.

FDIC Quarterly

4

1

2
3
2013

4

1

2

3
2014

-$35

-30.7

2 3
2011
Source: FDIC.

4

3

1

4

1

2 3
2012

4

1

2 3
2013

4

1

2 3
2014

4

2015, Volume 9, No. 1

new bank charters. There were 2,047,879 full-time
equivalent employees reported at year-end 2014, down
761 from September 30, and down 20,840 from yearend 2013. The number of banks on the FDIC’s “Problem List” declined from 329 to 291 during the fourth
quarter, and total assets of “problem” banks fell from
$102 billion to $87 billion. The “Problem List” is at its
lowest level since year-end 2008.

No New Charters Added in 2014
The number of FDIC-insured commercial banks and
savings institutions reporting financial results fell to
6,509 at year-end, from 6,589 at the end of September, and 6,812 at the end of 2013. During the fourth
quarter, mergers absorbed 75 institutions, while four
insured institutions failed. For the full year, there were
274 institutions absorbed by mergers and 18 failures.
This is the smallest number of bank failures in a year
since 2007. In 2013, there were 24 failures. No new
banks were chartered in 2014, marking the second
time in the last three years that there have been no

Author:

Chart 7

Chart 8
Noncurrent Loan Rate and Quarterly Net Charge-Off Rate

Annual Net Income

All FDIC-Insured Institutions

Billions of Dollars
$180
Securities and Other Gains/Losses, Net
Net Operating Income

$160

$80

141.1

120.6 122.2

$120

104.7
81.5

Percent
6

154.4 152.7

145.2
133.8

$140
$100

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

All FDIC-Insured Institutions

Noncurrent Loan Rate

5

118.4

4

99.9

87.4

85.5

3

$60

2

$40
$20

1

4.5

$0
-$20

Quarterly Net Charge-Off Rate
0
2006

-10.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Chart 9

2008

2009

2010

2011

2012

2013

2014

Chart 10
Number and Assets of Banks on the “Problem List”

Quarterly Change in Loan Balances
All FDIC-Insured Institutions

Assets (Billions of Dollars)
$500

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

$450

Number
1,000
Number of Problem Banks
900

$400

800

$350

700

$300

600

$250

500

$200

400

$150

291

$50

Source: FDIC.
*FASB Statements 166 and 167 resulted in the consolidation of large amounts of securitized
loan balances back onto banks’ balance sheets in the first quarter of 2010. Although the
total amount consolidated cannot be precisely quantified, the industry would have reported
a decline in loan balances for the quarter absent this change in accounting standards.

300

87 200

$100

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

FDIC Quarterly

2007

Source: FDIC.

Source: FDIC.

Problem Bank Assets

$0
2006 2007 2008 2009 2010 2011 2012 2013 2014

100
0

Source: FDIC.

4

2015, Volume 9, 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 institutions������������������������������������������������������������������������������������������
Number of assisted institutions��������������������������������������������������������������������������������������

2014
1.01
9.03
9.46
1.20
0.49
5.58
3.14
-0.43
6,509
5,642
867
6.13
291
$87
18
0

2013
1.07
9.54
9.40
1.63
0.69
1.94
3.26
12.83
6,812
5,876
936
8.15
467
$153
24
0

2012
1.00
8.91
9.15
2.20
1.10
4.03
3.42
17.81
7,083
6,096
987
10.98
651
$233
51
0

2011
0.88
7.79
9.07
2.61
1.55
4.30
3.60
43.56
7,357
6,291
1,066
16.23
813
$319
92
0

2010
0.65
5.85
8.89
3.11
2.55
1.77
3.76
1,594.54
7,658
6,530
1,128
22.15
884
$390
157
0

2009
-0.08
-0.73
8.60
3.37
2.52
-5.45
3.49
-155.98
8,012
6,840
1,172
30.84
702
$403
140
8

2008
0.03
0.35
7.47
1.91
1.29
6.19
3.16
-90.71
8,305
7,087
1,218
24.89
252
$159
25
5

* 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
2014
6,509
2,047,879

3rd Quarter
2014
6,589
2,048,640

4th Quarter
2013
6,812
2,068,719

%Change
13Q4-14Q4
-4.4
-1.0

$15,553,660
4,170,832
1,842,131
1,150,052
238,587
492,329
1,715,395
1,418,259
718,467
77,599
929,376
1,991
8,309,470
122,630
8,186,839
3,219,058
21,979
360,214
3,765,569

$15,349,215
4,136,122
1,838,272
1,133,309
230,646
496,129
1,673,177
1,382,425
683,022
72,946
897,347
1,922
8,160,094
125,265
8,034,829
3,166,177
24,890
363,942
3,759,377

$14,731,284
4,065,706
1,829,850
1,109,351
210,132
509,517
1,566,544
1,353,299
691,394
70,645
838,819
1,895
7,893,117
135,910
7,757,207
3,001,760
30,208
368,318
3,573,792

5.6
2.6
0.7
3.7
13.5
-3.4
9.5
4.8
3.9
9.8
10.8
5.1
5.3
-9.8
5.5
7.2
-27.2
-2.2
5.4

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

15,553,660
11,763,885
10,367,939
1,395,946
1,387,688
98,083
561,780
1,742,224
1,734,848

15,349,215
11,596,584
10,172,706
1,423,878
1,393,691
97,389
534,016
1,727,535
1,719,110

14,731,284
11,192,129
9,791,027
1,401,102
1,311,851
99,618
472,983
1,654,703
1,643,415

5.6
5.1
5.9
-0.4
5.8
-1.5
18.8
5.3
5.6

Loans and leases 30-89 days past due�������������������������������������������������������������������������
Noncurrent loans and leases�����������������������������������������������������������������������������������������
Restructured loans and leases��������������������������������������������������������������������������������������
Mortgage-backed securities������������������������������������������������������������������������������������������
Earning assets����������������������������������������������������������������������������������������������������������������
FHLB Advances��������������������������������������������������������������������������������������������������������������
Unused loan commitments���������������������������������������������������������������������������������������������
Trust assets��������������������������������������������������������������������������������������������������������������������
Assets securitized and sold�������������������������������������������������������������������������������������������
Notional amount of derivatives���������������������������������������������������������������������������������������
Full Year
INCOME DATA
2014
Total interest income�������������������������������������������������������������������
$469,776
Total interest expense�����������������������������������������������������������������
47,126
Net interest income��������������������������������������������������������������
422,650
Provision for loan and lease losses��������������������������������������������
29,739
Total noninterest income�������������������������������������������������������������
246,723
Total noninterest expense�����������������������������������������������������������
421,904
Securities gains (losses)�������������������������������������������������������������
3,201
Applicable income taxes�������������������������������������������������������������
67,493
Extraordinary gains, net��������������������������������������������������������������
-116
Total net income (includes minority interests)���������������������
153,321
		
Bank net income������������������������������������������������������������
152,685
Net charge-offs����������������������������������������������������������������������������
39,489
Cash dividends����������������������������������������������������������������������������
90,212
Retained earnings�����������������������������������������������������������������������
62,473
Net operating income�����������������������������������������������������������
151,154

69,968
162,686
84,019
1,728,580
13,882,348
464,272
6,478,463
18,365,112
972,438
221,922,457
Full Year
2013
$470,430
53,286
417,144
32,456
252,220
416,751
4,473
69,699
240
155,172
154,387
53,571
93,158
61,229
151,803

(dollar figures in millions)



FDIC Quarterly

66,217
171,931
89,187
1,718,438
13,695,290
443,155
6,435,169
18,189,653
967,824
242,940,419
4th Quarter
%Change
2014
-0.1
$119,029
-11.6
11,549
1.3
107,480
-8.4
8,213
-2.2
59,679
1.2
107,616
-28.4
860
-3.2
15,117
N/M
0
-1.2
37,073
-1.1
36,919
-26.3
9,852
-3.2
23,016
2.0
13,903
-0.4
36,439

75,897
207,255
99,212
1,673,882
13,076,173
406,163
6,120,553
19,655,376
742,448
237,016,804
4th Quarter
2013
$118,933
12,536
106,397
7,335
59,839
102,725
497
16,707
73
40,039
39,820
12,062
35,041
4,778
39,676

-7.8
-21.5
-15.3
3.3
6.2
14.3
5.8
-6.6
31.0
-6.4
%Change
13Q4-14Q4
0.1
-7.9
1.0
12.0
-0.3
4.8
73.0
-9.5
-99.9
-7.4
-7.3
-18.3
-34.3
191.0
-8.2

N/M - Not Meaningful

5

2015, Volume 9, No. 1

TABLE III-A. Full Year 2014, All FDIC-Insured Institutions
Asset Concentration Groups*
FULL YEAR
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������
6,509
Commercial banks�������������������������������������
5,642
Savings institutions�����������������������������������
867
Total assets (in billions)������������������������������������
$15,553.7
Commercial banks�������������������������������������
14,484.2
Savings institutions�����������������������������������
1,069.4
Total deposits (in billions)���������������������������������
11,763.9
Commercial banks�������������������������������������
10,945.5
Savings institutions�����������������������������������
818.4
Bank net income (in millions)���������������������������
152,685
Commercial banks�������������������������������������
140,663
Savings institutions�����������������������������������
12,023
Performance Ratios (%)
Yield on earning assets������������������������������������
Cost of funding earning assets������������������������
Net interest margin������������������������������������
Noninterest income to assets���������������������������
Noninterest expense to assets�������������������������
Loan and lease loss provision to assets����������
Net operating income to assets�����������������������
Pretax return on assets������������������������������������
Return on assets�����������������������������������������������
Return on equity�����������������������������������������������
Net charge-offs to loans and leases����������������
Loan and lease loss provision to
net charge-offs����������������������������������������������
Efficiency ratio��������������������������������������������������
% of unprofitable institutions����������������������������
% of institutions with earnings gains����������������

Credit
Card
International Agricultural Commercial
Banks
Banks
Banks
Lenders
15
3
1,515
3,222
12
3
1,496
2,912
3
0
19
310
$484.1
$3,735.9
$273.5
$4,878.1
389.4
3,735.9
268.6
4,477.1
94.7
0.0
4.8
401.0
259.7
2,633.3
226.8
3,795.3
192.4
2,633.3
223.6
3,501.1
67.3
0.0
3.2
294.2
14,689
27,134
3,103
43,915
10,622
27,134
3,002
40,751
4,067
0
101
3,164

Mortgage Consumer
Lenders
Lenders
553
52
166
41
387
11
$439.6
$176.0
156.6
89.9
283.0
86.1
328.0
148.1
122.4
76.0
205.5
72.1
4,313
1,787
2,518
968
1,795
819

Other
Specialized
All Other
<$1 Billion
<$1 Billion
374
708
335
618
39
90
$61.9
$129.1
56.9
107.8
5.0
21.3
49.9
108.2
46.4
91.1
3.5
17.1
1,336
1,109
720
1,004
616
105

All Other
>$1 Billion
67
59
8
$5,375.5
5,201.9
173.6
4,214.6
4,059.2
155.4
55,300
53,943
1,356

3.49
0.35
3.14
1.63
2.79
0.20
1.00
1.46
1.01
9.03
0.49

10.68
0.83
9.85
5.01
6.63
2.39
3.22
5.02
3.22
20.87
2.81

2.77
0.37
2.41
1.68
2.58
0.13
0.74
1.06
0.74
7.83
0.73

4.14
0.48
3.65
0.62
2.52
0.11
1.15
1.38
1.17
10.30
0.13

3.84
0.41
3.43
1.18
2.85
0.12
0.93
1.31
0.94
7.79
0.24

3.45
0.67
2.78
1.00
2.17
0.05
0.95
1.43
0.96
8.10
0.21

3.96
0.47
3.49
1.37
2.61
0.47
1.05
1.65
1.05
10.78
0.62

3.13
0.38
2.74
5.68
5.12
0.07
2.16
3.04
2.21
15.32
0.33

3.95
0.47
3.48
0.93
3.01
0.11
0.85
1.06
0.87
7.51
0.24

2.97
0.20
2.77
1.80
2.60
0.13
1.04
1.55
1.06
9.43
0.41

75.31
61.88
6.13
63.90

107.55
46.32
0.00
66.67

52.28
67.64
0.00
33.33

137.01
62.66
2.64
64.16

71.34
65.42
6.64
68.19

35.52
59.51
9.76
51.54

107.81
54.46
3.85
59.62

70.59
62.32
9.36
54.55

82.85
72.48
7.34
59.60

66.17
59.76
2.99
55.22

89.25

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

92.17

86.95

92.40

90.19

94.12

96.70

91.04

92.40

88.84

1.48
75.38

3.13
284.22

1.85
80.12

1.40
146.48

1.28
96.89

1.14
38.27

1.15
73.82

1.85
114.52

1.43
81.13

1.36
50.03

1.20
11.15
9.46
12.96
14.42
69.59
52.64
66.66

0.88
15.13
12.33
12.33
14.72
144.30
77.41
51.66

0.85
9.48
8.32
12.63
13.49
47.81
33.70
45.71

0.83
11.42
10.50
14.52
15.62
76.51
63.46
82.94

1.17
11.97
10.20
12.83
14.29
86.99
67.68
77.27

2.19
12.07
11.53
21.43
22.46
82.52
61.56
74.58

1.19
9.87
9.81
13.82
14.64
83.73
70.49
84.18

0.73
14.78
13.97
31.51
32.54
33.76
27.22
79.77

1.39
11.83
11.49
20.01
21.18
63.98
53.61
83.80

1.43
11.12
8.97
12.48
14.28
61.63
48.32
70.33

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

0
274
18

0
0
0

0
0
0

0
45
1

0
193
13

0
9
2

0
0
0

0
3
0

0
12
2

0
12
0

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

6,812
7,357
8,012

16
18
23

4
4
4

1,532
1,545
1,568

3,378
3,769
4,453

588
732
766

55
59
83

405
377
289

772
790
770

62
63
56

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

$14,731.3
13,891.4
13,086.8

$590.9
538.7
501.6

$3,700.5
3,456.4
3,107.1

$261.6
215.7
182.0

$4,921.3
4,086.2
4,546.7

$486.9
825.4
810.1

$162.5
97.2
96.5

$62.8
56.1
38.1

$137.6
138.6
116.1

$4,407.1
4,477.2
3,688.7

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

1.07
0.88
-0.08

3.35
3.49
-4.51

0.86
0.74
0.08

1.15
1.11
0.81

0.91
0.63
-0.43

0.98
0.56
0.65

1.15
1.68
0.33

1.93
1.92
0.74

0.85
0.92
0.80

1.11
0.89
0.53

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

0.69
1.55
2.52

3.20
5.26
9.77

0.97
1.97
3.07

0.14
0.40
0.65

0.43
1.18
2.02

0.37
0.90
1.24

0.80
1.87
2.74

0.48
0.56
0.78

0.33
0.54
0.54

0.49
1.25
2.19

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

1.63
2.61
3.37

0.93
1.41
2.40

1.07
1.61
2.75

0.95
1.46
1.55

1.65
3.05
3.87

2.14
2.61
3.17

1.23
1.28
1.45

0.84
1.11
0.69

1.44
1.69
1.34

2.18
3.25
3.66

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

11.16
11.16
10.88

14.73
15.11
21.49

9.28
8.89
8.75

10.97
11.22
10.95

11.79
11.69
10.48

11.62
10.39
9.48

9.51
9.82
11.15

13.50
14.51
17.74

11.34
11.45
11.27

11.52
12.08
11.95

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

FDIC Quarterly

6

2015, Volume 9, No. 1

Quarterly Banking Profile
TABLE III-A. Full Year 2014, All FDIC-Insured Institutions
Asset Size Distribution
FULL YEAR
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������������
6,509
Commercial banks�������������������������������������������
5,642
Savings institutions�����������������������������������������
867
Total assets (in billions)������������������������������������������
$15,553.7
Commercial banks�������������������������������������������
14,484.2
Savings institutions�����������������������������������������
1,069.4
Total deposits (in billions)���������������������������������������
11,763.9
Commercial banks�������������������������������������������
10,945.5
Savings institutions�����������������������������������������
818.4
Bank net income (in millions)���������������������������������
152,685
Commercial banks�������������������������������������������
140,663
Savings institutions�����������������������������������������
12,023
Performance Ratios (%)
Yield on earning assets������������������������������������������
Cost of funding earning assets������������������������������
Net interest margin������������������������������������������
Noninterest income to assets���������������������������������
Noninterest expense to assets�������������������������������
Loan and lease loss provision to assets����������������
Net operating income to assets�����������������������������
Pretax return on assets������������������������������������������
Return on assets�����������������������������������������������������
Return on equity�����������������������������������������������������
Net charge-offs to loans and leases����������������������
Loan and lease loss provision to
net charge-offs����������������������������������������������������
Efficiency ratio��������������������������������������������������������
% of unprofitable institutions����������������������������������
% of institutions with earnings gains����������������������

Geographic Regions*

Less Than
$100
$1 Billion
Greater
$100
Million to
to
Than
Million
$1 Billion $10 Billion $10 Billion New York
1,872
3,956
574
107
807
1,645
3,439
467
91
449
227
517
107
16
358
$109.8
$1,232.0
$1,576.4 $12,635.4
$2,956.0
96.8
1,045.3
1,288.1
12,054.1
2,488.9
13.1
186.7
288.3
581.3
467.1
92.5
1,024.3
1,227.9
9,419.3
2,180.6
82.3
876.8
1,013.0
8,973.5
1,841.5
10.2
147.5
214.9
445.8
339.0
864
12,032
16,538
123,251
24,056
754
10,366
14,195
115,348
21,016
110
1,667
2,343
7,903
3,040

Atlanta
812
735
77
$3,217.9
3,131.2
86.8
2,477.2
2,412.5
64.6
32,087
31,375
712

Chicago
1,406
1,176
230
$3,595.8
3,489.7
106.1
2,634.6
2,555.0
79.5
30,462
29,378
1,084

Kansas
City
1,599
1,530
69
$3,404.4
3,344.7
59.7
2,567.0
2,520.3
46.8
35,362
34,869
493

San
Dallas
Francisco
1,372
513
1,282
470
90
43
$904.4
$1,475.1
798.0
1,231.7
106.4
243.4
751.7
1,152.8
663.6
952.6
88.1
200.3
10,063
20,656
8,743
15,282
1,320
5,374

3.49
0.35
3.14
1.63
2.79
0.20
1.00
1.46
1.01
9.03
0.49

4.13
0.47
3.66
1.13
3.45
0.11
0.78
0.93
0.80
6.54
0.23

4.19
0.50
3.69
1.10
3.16
0.12
0.98
1.26
1.00
9.08
0.22

4.19
0.43
3.76
1.21
3.00
0.17
1.08
1.49
1.08
9.12
0.27

3.33
0.32
3.00
1.74
2.73
0.21
1.00
1.48
1.00
9.04
0.56

3.51
0.42
3.09
1.49
2.74
0.27
0.83
1.23
0.84
7.03
0.55

3.65
0.28
3.37
1.62
2.97
0.23
0.97
1.44
1.00
8.16
0.53

2.76
0.28
2.47
1.82
2.68
0.10
0.88
1.22
0.88
8.96
0.36

3.72
0.39
3.32
1.46
2.68
0.17
1.06
1.57
1.07
10.31
0.60

3.96
0.33
3.63
1.37
3.07
0.13
1.13
1.50
1.14
10.34
0.23

4.07
0.44
3.63
2.10
2.88
0.32
1.49
2.27
1.49
11.80
0.47

75.31
61.88
6.13
63.90

86.89
76.92
11.38
58.17

85.17
69.73
4.35
66.15

92.08
63.55
2.26
67.07

73.46
60.74
0.93
63.55

94.26
62.53
7.81
59.23

72.59
63.75
9.61
65.27

64.50
66.36
7.54
60.24

52.66
59.38
3.75
65.60

93.98
64.94
3.72
67.06

111.65
52.20
7.99
65.30

89.25

91.66

92.49

91.70

88.61

89.27

88.27

88.67

88.62

91.60

92.83

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

1.48
75.38

1.54
101.34

1.44
106.32

1.37
84.79

1.50
71.47

1.36
92.44

1.52
65.88

1.57
71.64

1.58
62.15

1.34
97.03

1.31
144.64

1.20
11.15
9.46
12.96
14.42
69.59
52.64
66.66

1.46
12.30
11.99
19.56
20.65
67.40
56.74
84.18

1.38
11.21
10.80
15.75
16.89
77.13
64.12
83.08

1.41
11.91
10.63
14.36
15.45
85.72
66.77
77.52

1.15
11.04
9.15
12.48
14.01
66.69
49.72
63.55

0.89
11.83
9.55
13.40
15.09
71.32
52.61
65.41

1.55
12.45
9.70
12.94
14.60
75.24
57.92
74.28

1.11
9.81
8.73
12.21
13.35
60.01
43.97
61.90

1.46
10.21
8.93
12.25
13.85
67.37
50.80
56.84

1.18
11.07
10.02
13.85
15.00
74.32
61.77
82.77

0.65
12.47
11.39
15.02
16.17
77.96
60.93
76.93

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

0
274
18

0
87
10

0
162
8

0
22
0

0
3
0

0
26
3

0
46
4

0
60
6

0
58
1

0
57
2

0
27
2

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

6,812
7,357
8,012

2,056
2,415
2,848

4,090
4,284
4,492

559
551
565

107
107
107

840
915
986

869
957
1,121

1,470
1,552
1,647

1,659
1,773
1,879

1,431
1,542
1,660

543
618
719

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

$14,731.3
13,891.4
13,086.8

$119.7
138.7
158.9

$1,246.1
1,279.9
1,354.4

$1,468.7
1,410.9
1,461.4

$11,896.8
11,061.8
10,112.1

$2,927.3
2,864.6
2,567.2

$2,998.8
2,942.8
3,427.3

$3,376.9
3,184.5
2,934.4

$3,223.2
2,918.2
1,145.6

$870.0
813.0
784.8

$1,335.1
1,168.4
2,227.5

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

1.07
0.88
-0.08

0.70
0.52
-0.05

0.91
0.56
-0.10

1.16
0.79
-0.37

1.07
0.93
-0.03

0.88
1.01
-0.83

0.98
0.52
0.01

0.95
0.78
0.18

1.24
0.95
0.76

1.08
0.95
0.34

1.55
1.47
-0.25

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

0.69
1.55
2.52

0.35
0.62
0.88

0.36
0.90
1.25

0.41
1.18
1.91

0.78
1.72
2.87

0.93
1.86
2.76

0.66
1.66
2.29

0.49
1.19
2.36

0.87
1.85
2.40

0.32
0.89
1.35

0.57
1.15
3.44

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

1.63
2.61
3.37

1.75
2.34
2.24

1.81
3.01
3.29

1.89
3.13
3.58

1.57
2.50
3.36

1.12
1.78
2.33

2.23
3.84
4.16

1.47
2.31
3.20

1.99
2.76
4.28

1.58
2.60
3.04

0.91
1.97
3.19

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

11.16
11.16
10.88

11.68
11.83
11.96

10.78
10.65
9.86

11.80
11.73
10.72

11.11
11.14
11.02

12.02
12.26
12.53

12.19
11.98
11.66

9.66
8.68
8.59

10.43
11.12
10.70

10.87
10.93
10.28

12.65
13.48
11.11

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

FDIC Quarterly

7

2015, Volume 9, No. 1

TABLE IV-A. Fourth Quarter 2014, All FDIC-Insured Institutions
Asset Concentration Groups*
FOURTH QUARTER
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������
6,509
Commercial banks�������������������������������������
5,642
Savings institutions�����������������������������������
867
Total assets (in billions)������������������������������������
$15,553.7
Commercial banks�������������������������������������
14,484.2
Savings institutions�����������������������������������
1,069.4
Total deposits (in billions)���������������������������������
11,763.9
Commercial banks�������������������������������������
10,945.5
Savings institutions�����������������������������������
818.4
Bank net income (in millions)���������������������������
36,919
Commercial banks�������������������������������������
33,772
Savings institutions�����������������������������������
3,147

Credit
Card
International Agricultural Commercial
Banks
Banks
Banks
Lenders
15
3
1,515
3,222
12
3
1,496
2,912
3
0
19
310
$484.1
$3,735.9
$273.5
$4,878.1
389.4
3,735.9
268.6
4,477.1
94.7
0.0
4.8
401.0
259.7
2,633.3
226.8
3,795.3
192.4
2,633.3
223.6
3,501.1
67.3
0.0
3.2
294.2
3,702
4,830
741
11,554
2,592
4,830
721
10,724
1,110
0
20
830

Mortgage Consumer
Lenders
Lenders
553
52
166
41
387
11
$439.6
$176.0
156.6
89.9
283.0
86.1
328.0
148.1
122.4
76.0
205.5
72.1
997
403
552
220
445
182

Other
Specialized
All Other
<$1 Billion
<$1 Billion
374
708
335
618
39
90
$61.9
$129.1
56.9
107.8
5.0
21.3
49.9
108.2
46.4
91.1
3.5
17.1
382
267
190
245
192
21

All Other
>$1 Billion
67
59
8
$5,375.5
5,201.9
173.6
4,214.6
4,059.2
155.4
14,044
13,696
348

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����������������

3.46
0.34
3.12
1.55
2.79
0.21
0.94
1.35
0.96
8.56
0.48

10.59
0.83
9.76
4.95
6.68
2.54
3.08
4.71
3.08
20.43
2.74

2.73
0.33
2.39
1.46
2.66
0.17
0.51
0.72
0.52
5.48
0.73

4.17
0.47
3.70
0.63
2.65
0.14
1.08
1.29
1.10
9.55
0.19

3.81
0.41
3.40
1.20
2.85
0.12
0.95
1.31
0.96
7.97
0.24

3.39
0.69
2.70
1.01
2.26
0.01
0.86
1.35
0.91
7.54
0.12

4.05
0.46
3.58
1.32
2.75
0.57
0.93
1.46
0.93
9.36
0.65

3.10
0.37
2.72
6.41
5.45
0.06
2.43
3.44
2.49
16.89
0.45

3.95
0.45
3.50
0.95
3.12
0.11
0.81
0.99
0.83
7.02
0.26

2.90
0.18
2.72
1.66
2.49
0.12
1.03
1.50
1.05
9.44
0.38

83.37
63.46
9.37
61.22

118.44
47.25
0.00
80.00

69.08
74.50
0.00
33.33

114.60
64.95
7.72
58.09

73.61
65.96
8.91
65.64

16.59
63.13
12.48
54.43

122.69
56.93
5.77
57.69

49.88
61.09
14.17
54.55

76.07
74.14
11.02
56.92

66.72
59.44
4.48
58.21

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

0
75
4

0
0
0

0
0
0

0
8
0

0
54
4

0
3
0

0
0
0

0
1
0

0
5
0

0
4
0

PRIOR FOURTH QUARTERS
(The way it was...)
Return on assets (%)��������������������������������2013
��������������������������������������2011
������������������������������������� 2009

1.09
0.73
-0.05

3.65
3.13
0.53

0.92
0.60
0.29

1.08
1.04
0.54

0.96
0.38
-0.84

0.96
0.48
0.65

0.91
1.39
0.32

2.18
2.11
1.25

0.76
0.85
0.73

1.04
0.86
0.31

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

0.62
1.38
3.00

3.09
4.34
9.50

0.81
1.72
3.59

0.20
0.51
1.04

0.38
1.12
2.59

0.28
0.90
1.34

0.88
1.88
2.66

0.66
0.65
0.77

0.37
0.73
0.84

0.40
1.10
2.80

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

FDIC Quarterly

8

2015, Volume 9, No. 1

Quarterly Banking Profile
TABLE IV-A. Fourth Quarter 2014, All FDIC-Insured Institutions
Asset Size Distribution
FOURTH QUARTER
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������������
6,509
Commercial banks�������������������������������������������
5,642
Savings institutions�����������������������������������������
867
Total assets (in billions)������������������������������������������
$15,553.7
Commercial banks�������������������������������������������
14,484.2
Savings institutions�����������������������������������������
1,069.4
Total deposits (in billions)���������������������������������������
11,763.9
Commercial banks�������������������������������������������
10,945.5
Savings institutions�����������������������������������������
818.4
Bank net income (in millions)���������������������������������
36,919
Commercial banks�������������������������������������������
33,772
Savings institutions�����������������������������������������
3,147

Geographic Regions*

Less Than
$100
$1 Billion
Greater
$100
Million to
to
Than
Million
$1 Billion $10 Billion $10 Billion New York
1,872
3,956
574
107
807
1,645
3,439
467
91
449
227
517
107
16
358
$109.8
$1,232.0
$1,576.4 $12,635.4
$2,956.0
96.8
1,045.3
1,288.1
12,054.1
2,488.9
13.1
186.7
288.3
581.3
467.1
92.5
1,024.3
1,227.9
9,419.3
2,180.6
82.3
876.8
1,013.0
8,973.5
1,841.5
10.2
147.5
214.9
445.8
339.0
190
3,128
4,199
29,403
6,209
164
2,668
3,600
27,339
5,435
25
460
599
2,064
775

Atlanta
812
735
77
$3,217.9
3,131.2
86.8
2,477.2
2,412.5
64.6
8,150
7,984
165

Chicago
1,406
1,176
230
$3,595.8
3,489.7
106.1
2,634.6
2,555.0
79.5
7,450
7,111
339

Kansas
City
1,599
1,530
69
$3,404.4
3,344.7
59.7
2,567.0
2,520.3
46.8
7,314
7,196
118

San
Dallas
Francisco
1,372
513
1,282
470
90
43
$904.4
$1,475.1
798.0
1,231.7
106.4
243.4
751.7
1,152.8
663.6
952.6
88.1
200.3
2,500
5,297
2,206
3,841
294
1,456

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����������������������

3.46
0.34
3.12
1.55
2.79
0.21
0.94
1.35
0.96
8.56
0.48

4.17
0.46
3.71
1.16
3.67
0.12
0.68
0.79
0.69
5.63
0.28

4.22
0.49
3.73
1.16
3.24
0.13
1.00
1.27
1.03
9.14
0.30

4.21
0.43
3.78
1.21
3.08
0.18
1.07
1.42
1.08
9.04
0.25

3.27
0.31
2.97
1.63
2.70
0.23
0.92
1.35
0.94
8.46
0.54

3.49
0.42
3.06
1.42
2.70
0.27
0.84
1.20
0.85
7.13
0.51

3.56
0.26
3.30
1.47
2.82
0.22
0.98
1.38
1.01
8.17
0.49

2.71
0.27
2.45
1.69
2.65
0.11
0.84
1.10
0.84
8.51
0.38

3.69
0.36
3.33
1.34
2.81
0.21
0.85
1.30
0.86
8.43
0.61

4.02
0.32
3.69
1.41
3.17
0.16
1.11
1.46
1.12
10.08
0.27

4.04
0.44
3.60
2.19
2.94
0.37
1.46
2.23
1.47
11.64
0.44

83.37
63.46
9.37
61.22

73.01
80.36
18.22
55.66

67.89
70.09
6.17
63.04

110.19
65.12
4.36
65.85

82.46
62.38
0.00
66.36

101.83
63.86
9.79
56.88

76.68
63.17
13.42
64.53

65.38
68.25
9.74
59.03

65.03
64.09
7.88
61.66

97.49
65.72
7.65
63.34

134.49
52.79
10.53
61.79

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

0
75
4

0
18
2

0
52
2

0
4
0

0
1
0

0
8
1

0
8
0

0
20
1

0
15
1

0
17
0

0
7
1

PRIOR FOURTH QUARTERS
(The way it was…)
Return on assets (%)��������������������������������������2013
�������������������������������������������� 2011
������������������������������������������� 2009

1.09
0.73
-0.05

0.59
0.30
-0.51

0.88
0.40
-0.67

1.07
0.60
-0.57

1.12
0.79
0.11

1.05
0.83
0.16

0.86
0.25
-0.41

1.06
0.69
0.06

1.20
0.86
0.77

0.98
0.82
0.17

1.55
1.44
-0.38

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

0.62
1.38
3.00

0.44
0.78
1.23

0.41
1.09
1.99

0.38
1.22
2.42

0.68
1.46
3.32

0.80
1.55
2.96

0.59
1.45
2.78

0.46
1.21
2.98

0.73
1.58
2.71

0.32
1.00
1.62

0.57
1.06
4.28

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

FDIC Quarterly

9

2015, Volume 9, No. 1

TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Concentration Groups*
December 31, 2014

All Insured
Institutions

Credit
Card
Banks

International Agricultural Commercial Mortgage
Banks
Banks
Lenders
Lenders

Consumer
Lenders

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

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

1.01
0.48
0.34
0.19
0.70
1.77
0.26
1.34
1.14
1.55
0.44
0.84

0.13
0.00
0.00
0.00
0.67
0.13
0.85
1.20
1.21
1.17
0.01
1.17

1.58
0.87
0.49
0.20
1.03
2.55
0.35
1.35
1.14
1.73
0.39
1.00

0.66
0.83
0.51
0.25
0.45
1.33
0.76
1.51
1.28
1.52
0.35
0.63

0.62
0.40
0.33
0.18
0.56
1.16
0.22
1.23
1.20
1.23
0.19
0.54

1.09
0.68
0.38
0.22
0.70
1.22
0.53
1.07
1.49
1.03
0.14
1.02

0.68
1.00
0.86
0.57
0.46
0.73
0.17
0.77
0.38
0.89
0.25
0.71

1.55
1.59
0.94
0.76
0.33
2.24
1.29
1.76
1.20
1.82
0.41
1.47

1.45
1.02
1.08
0.90
0.86
1.83
0.93
1.99
1.35
2.00
0.38
1.38

1.47
0.57
0.25
0.22
0.72
2.32
0.20
1.60
1.10
1.91
0.64
1.09

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

3.35
2.09
1.33
0.44
2.63
5.63
0.50
0.89
1.12
0.66
0.20
1.96

0.43
0.00
0.00
0.00
0.00
0.46
0.72
1.14
1.16
0.55
0.00
1.10

5.41
1.29
0.88
0.28
3.87
9.07
0.45
1.08
1.07
1.09
0.16
2.31

1.18
1.97
1.65
0.86
0.82
1.22
1.23
0.55
0.36
0.57
0.31
0.95

1.78
2.15
1.27
0.48
1.45
2.77
0.60
0.74
1.11
0.71
0.30
1.32

3.28
1.48
1.75
0.69
2.04
3.64
0.88
0.55
1.13
0.48
0.10
2.97

3.70
20.81
8.62
2.65
2.72
2.97
0.51
0.75
1.16
0.62
6.30
1.56

1.88
1.92
2.02
1.61
1.00
1.84
1.58
0.64
0.62
0.64
0.31
1.62

1.98
3.50
2.25
1.49
0.63
1.89
1.54
1.05
0.58
1.05
0.40
1.76

5.52
1.79
1.36
0.35
3.42
8.40
0.32
0.72
1.08
0.48
0.10
2.71

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

0.20
0.03
0.10
0.02
0.59
0.20
0.24
1.95
3.12
0.77
0.09
0.49

0.05
0.00
0.00
0.00
0.00
0.06
2.06
2.89
2.96
1.31
0.00
2.81

0.34
-0.17
0.03
0.00
0.62
0.38
0.21
2.75
3.62
1.26
0.09
0.73

0.09
0.04
0.13
0.12
0.19
0.13
0.32
0.43
0.90
0.40
0.00
0.13

0.20
0.16
0.13
0.05
0.39
0.27
0.21
0.76
3.33
0.54
0.17
0.24

0.15
0.16
0.15
0.11
0.56
0.13
0.79
1.52
3.39
1.12
0.11
0.21

0.32
-0.14
0.25
-0.02
0.86
0.15
0.16
0.78
2.10
0.38
0.07
0.62

0.21
0.27
0.22
-0.55
0.16
0.25
0.50
0.60
1.72
0.50
0.94
0.33

0.18
0.39
0.23
0.04
0.14
0.17
0.46
0.46
1.56
0.44
0.00
0.24

0.16
-0.42
-0.01
-0.05
0.78
0.10
0.17
1.69
3.05
0.85
0.03
0.41

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

$4,170.8
238.6
1,150.1
297.4
492.3
1,842.1
1,715.4
1,418.3
718.5
699.8
1,007.0
8,311.5

$0.3
0.0
0.0
0.0
0.0
0.3
31.8
354.6
338.9
15.7
0.2
386.9

$466.8
6.8
34.6
53.1
78.2
236.4
267.6
253.5
161.0
92.5
295.3
1,283.2

$104.7
5.9
29.1
3.1
2.2
26.7
21.5
6.6
0.5
6.1
43.3
176.1

$2,067.0
167.5
805.0
193.8
196.0
671.1
793.9
243.9
19.8
224.1
240.4
3,345.2

$244.5
4.6
19.7
5.6
13.6
200.3
6.5
6.6
0.7
6.0
16.2
273.8

$29.0
0.5
2.5
0.3
6.4
19.2
6.8
86.5
19.9
66.6
3.2
125.5

$12.1
0.9
4.1
0.3
0.4
5.7
2.2
1.8
0.2
1.6
1.0
17.2

$53.4
3.1
12.9
1.4
2.2
29.8
6.2
6.0
0.1
5.9
4.7
70.2

$1,193.0
49.5
242.2
39.6
193.4
652.6
578.8
458.6
177.4
281.2
402.9
2,633.3

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

21,978.8
6,379.6
5,121.9
444.7
5,980.4
257.0
3,756.9

0.2
0.0
0.0
0.0
0.2
0.0
0.0

1,124.0
3.0
59.0
1.0
563.0
0.0
462.0

585.8
216.9
209.4
20.6
98.0
40.8
0.1

12,699.2
4,934.5
3,796.6
351.8
2,939.6
192.6
483.8

1,415.4
155.8
85.1
9.0
389.5
2.0
774.1

136.2
25.4
38.0
0.1
64.7
0.0
8.0

167.4
63.8
54.2
6.2
40.4
2.8
0.0

540.1
173.0
167.2
10.3
178.7
10.9
0.1

5,310.4
807.1
712.4
45.6
1,706.3
7.9
2,029.0

* Asset Concentration Group Definitions (Groups are hierarchical and mutually exclusive):
Credit-card Lenders - Institutions whose credit-card loans plus securitized receivables exceed 50 percent of total assets plus securitized receivables.
International Banks - Banks with assets greater than $10 billion and more than 25 percent of total assets in foreign offices.
Agricultural Banks - Banks whose agricultural production loans plus real estate loans secured by farmland exceed 25 percent of the total loans and leases.
Commercial Lenders - Institutions whose commercial and industrial loans, plus real estate construction and development loans, plus loans secured by commercial real estate properties
exceed 25 percent of total assets.
Mortgage Lenders - Institutions whose residential mortgage loans, plus mortgage-backed securities, exceed 50 percent of total assets.
Consumer Lenders - Institutions whose residential mortgage loans, plus credit-card loans, plus other loans to individuals, exceed 50 percent of total assets.
Other Specialized < $1 Billion - Institutions with assets less than $1 billion, whose loans and leases are less than 40 percent of total assets.
All Other < $1 billion - Institutions with assets less than $1 billion that do not meet any of the definitions above, they have significant lending activity with no identified asset concentrations.
All Other > $1 billion - Institutions with assets greater than $1 billion that do not meet any of the definitions above, they have significant lending activity with no identified asset
concentrations.
** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.

FDIC Quarterly

10

2015, Volume 9, No. 1

Quarterly Banking Profile
TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Size Distribution
December 31, 2014

Geographic Regions*

Less Than
$100
$1 Billion Greater
All Insured
$100
Million to
to
Than
Institutions
Million
$1 Billion $10 Billion $10 Billion New York

Atlanta

Chicago

Kansas
City

Dallas

San
Francisco

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

1.01
0.48
0.34
0.19
0.70
1.77
0.26
1.34
1.14
1.55
0.44
0.84

1.35
0.96
1.14
0.75
0.86
1.92
1.06
2.03
3.28
2.01
0.33
1.23

0.78
0.53
0.52
0.43
0.56
1.28
0.61
1.80
1.58
1.82
0.31
0.78

0.65
0.46
0.30
0.14
0.52
1.28
0.36
1.47
1.85
1.29
0.21
0.65

1.15
0.46
0.27
0.17
0.73
1.94
0.21
1.32
1.11
1.55
0.46
0.88

0.70
0.55
0.39
0.19
0.51
1.16
0.23
1.12
0.94
1.46
1.24
0.76

1.21
0.58
0.32
0.27
0.80
1.98
0.15
1.78
1.30
2.30
0.20
0.97

1.07
0.52
0.39
0.18
0.85
1.79
0.35
1.27
0.93
1.38
0.59
0.87

1.41
0.25
0.26
0.12
0.71
2.50
0.27
1.34
1.22
1.50
0.08
0.95

0.91
0.53
0.42
0.38
0.52
1.79
0.35
0.91
0.36
1.19
0.27
0.74

0.42
0.32
0.22
0.13
0.34
0.71
0.26
1.09
1.39
0.83
0.29
0.52

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

3.35
2.09
1.33
0.44
2.63
5.63
0.50
0.89
1.12
0.66
0.20
1.96

1.72
2.72
2.09
1.63
0.79
1.71
1.85
0.86
1.05
0.86
0.50
1.52

1.48
2.65
1.45
0.96
0.78
1.51
1.18
1.07
1.06
1.07
0.36
1.35

1.92
2.30
1.35
0.53
0.99
3.06
0.91
0.79
1.59
0.40
0.66
1.61

4.19
1.73
1.25
0.32
2.96
6.87
0.39
0.89
1.10
0.66
0.15
2.10

2.16
2.69
1.60
0.32
2.02
3.12
0.63
0.91
0.96
0.81
0.27
1.47

4.24
2.98
1.26
0.49
3.31
6.63
0.40
1.02
1.21
0.80
0.14
2.31

3.85
1.95
1.43
0.58
2.81
6.52
0.50
0.84
0.98
0.79
0.15
2.19

4.83
1.59
1.32
0.53
2.77
8.33
0.47
0.88
1.15
0.51
0.22
2.54

1.87
1.29
1.01
0.71
1.73
3.34
0.68
0.71
1.15
0.49
0.25
1.38

1.28
1.63
1.13
0.33
0.98
1.59
0.45
0.78
1.30
0.31
0.22
0.90

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

0.20
0.03
0.10
0.02
0.59
0.20
0.24
1.95
3.12
0.77
0.09
0.49

0.19
0.20
0.26
0.14
0.13
0.21
0.38
0.60
4.00
0.56
0.00
0.23

0.17
0.24
0.17
0.15
0.21
0.17
0.41
0.76
3.78
0.54
0.17
0.22

0.15
0.04
0.12
0.07
0.25
0.22
0.26
1.55
3.40
0.70
0.19
0.27

0.22
-0.07
0.06
-0.01
0.66
0.20
0.22
2.01
3.11
0.79
0.08
0.56

0.20
0.33
0.12
0.01
0.37
0.26
0.28
2.03
2.71
0.81
0.10
0.55

0.22
0.17
0.15
0.05
0.85
0.10
0.21
2.02
3.10
0.82
0.06
0.53

0.25
0.13
0.17
0.04
0.54
0.25
0.24
1.27
3.12
0.65
0.12
0.36

0.25
-0.46
0.00
0.02
0.68
0.33
0.19
2.57
3.67
1.15
0.07
0.60

0.10
0.02
0.07
0.05
0.47
0.11
0.19
1.10
1.99
0.65
0.21
0.23

0.02
-0.31
0.04
0.01
0.12
0.03
0.36
1.68
3.23
0.37
0.08
0.47

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

$4,170.8
238.6
1,150.1
297.4
492.3
1,842.1
1,715.4
1,418.3
718.5
699.8
1,007.0
8,311.5

$43.5
2.6
11.4
1.3
1.1
19.9
7.5
4.0
0.0
3.9
8.3
63.3

$612.9
53.0
238.4
32.2
27.6
218.9
105.1
34.8
2.4
32.5
49.1
801.9

$765.4
62.5
304.1
68.1
48.4
264.1
169.1
78.8
25.8
53.0
54.4
1,067.6

$2,749.1
120.5
596.2
195.8
415.2
1,339.2
1,433.7
1,300.7
690.2
610.4
895.2
6,378.6

$851.5
44.8
264.9
105.5
91.2
341.0
259.7
301.1
194.4
106.7
164.8
1,577.1

$896.1
50.7
233.5
36.2
128.5
436.6
424.0
360.6
189.4
171.2
211.9
1,892.7

$812.0
38.6
185.2
79.4
123.1
365.0
350.7
206.3
52.0
154.3
237.3
1,606.4

$822.7
35.7
166.7
25.6
101.0
403.1
352.5
296.9
170.4
126.5
285.6
1,757.7

$346.9
46.7
136.5
12.5
19.5
118.0
122.3
56.8
19.1
37.7
40.5
566.5

$441.5
22.1
163.2
38.2
29.1
178.5
206.2
196.5
93.2
103.3
66.8
911.1

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

21,978.8
6,379.6
5,121.9
444.7
5,980.4
257.0
3,756.9

633.8
217.5
207.9
21.7
175.5
11.3
0.0

6,117.9
2,771.7
1,965.1
158.9
1,073.3
135.3
13.7

4,897.4
1,860.5
1,441.8
97.7
1,042.1
87.7
367.5

10,329.7
1,529.9
1,507.2
166.4
3,689.5
22.7
3,375.7

2,994.3
678.6
777.4
154.5
1,134.9
18.4
230.6

6,142.2
1,813.9
1,117.5
46.9
1,581.5
59.3
1,523.0

4,285.4
857.9
1,050.6
83.5
1,352.6
53.3
887.6

4,434.6
1,358.8
930.0
79.6
1,007.1
33.2
988.0

2,736.0
1,170.4
855.9
48.0
524.4
70.5
66.9

1,386.3
500.1
390.5
32.3
379.9
22.3
60.9

* Regions:
New York - Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Puerto Rico, Rhode Island, Vermont,
U.S. Virgin Islands
Atlanta - Alabama, Florida, Georgia, North Carolina, South Carolina, Virginia, West Virginia
Chicago - Illinois, Indiana, Kentucky, Michigan, Ohio, Wisconsin
Kansas City - Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota
Dallas - Arkansas, Colorado, Louisiana, Mississippi, New Mexico, Oklahoma, Tennessee, Texas
San Francisco - Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Pacific Islands, Utah, Washington, Wyoming
** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.

FDIC Quarterly

11

2015, Volume 9, No. 1

Table VI-A. Derivatives, All FDIC-Insured Call Report Filers
Asset Size Distribution
4th
Quarter
2014

3rd
Quarter
2014

2nd
Quarter
2014

1st
Quarter
2014

4th
Quarter
2013

(dollar figures in millions;
notional amounts unless otherwise indicated)
ALL DERIVATIVE HOLDERS
Number of institutions reporting derivatives�����������������
1,399
1,391
1,405
1,399
1,389
Total assets of institutions reporting derivatives���������� $13,921,587 $13,713,773 $13,522,747 $13,250,723 $13,073,465
Total deposits of institutions reporting derivatives������� 10,461,400 10,291,404 10,169,200
9,980,762
9,855,694
Total derivatives������������������������������������������������������������� 221,922,457 242,940,419 239,124,560 231,754,089 237,016,804

% Change
Less
$100
$1 Billion
13Q4Than $100 Million to
to $10
14Q4
Million
$1 Billion
Billion

Greater
Than
$10 Billion

0.7
6.5
6.1
-6.4

70
$4,983
4,141
251

839
390
100
$350,914 $1,174,734 $12,390,956
288,543
931,509
9,237,207
19,663
94,141 221,808,402

Derivative Contracts by Underlying Risk Exposure
Interest rate�������������������������������������������������������������������� 173,939,550 190,894,481 191,553,140 184,417,973 193,081,248
Foreign exchange*�������������������������������������������������������� 34,745,833 37,993,284 33,394,780 32,803,408 29,508,031
Equity�����������������������������������������������������������������������������
2,577,118
2,317,271
2,135,462
2,105,011
2,028,018
Commodity & other (excluding credit derivatives)��������
1,210,879
1,327,011
1,214,397
1,263,060
1,208,874
Credit������������������������������������������������������������������������������
9,449,078 10,408,372 10,826,781
11,164,636
11,190,633
Total�������������������������������������������������������������������������������� 221,922,457 242,940,419 239,124,560 231,754,089 237,016,804

-9.9
17.8
27.1
0.2
-15.6
-6.4

250
0
0
0
0
251

17,310
2,212
63
3
75
19,663

88,503 173,833,486
4,717
34,738,904
327
2,576,728
102
1,210,773
492
9,448,511
94,141 221,808,402

Derivative Contracts by Transaction Type
Swaps���������������������������������������������������������������������������� 135,167,761 148,328,645 146,511,551 141,282,323 152,466,706
Futures & forwards�������������������������������������������������������� 43,368,380 45,058,906 45,263,675
42,478,719 40,026,988
Purchased options��������������������������������������������������������� 16,370,106
17,990,978 17,268,335
17,177,576
16,107,374
Written options��������������������������������������������������������������� 16,004,450 17,560,543 16,843,011 16,905,448
16,197,549
Total�������������������������������������������������������������������������������� 210,910,697 228,939,072 225,886,572 217,844,066 224,798,616

-11.3
8.3
1.6
-1.2
-6.2

41
53
19
138
251

7,275
7,181
750
4,378
19,585

52,920
21,348
5,381
13,833
93,482

135,107,524
43,339,799
16,363,957
15,986,100
210,797,379

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�����������������������������������

60,026
-4,845
3,769
-3,376
47,533
-36,635

65,132
13,334
-657
219
67,082
-62,731

72,249
4,729
412
965
95,094
-90,465

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

71,270
5,991
32
1,350
74,838
-71,220

-15.8
N/M
11,678.1
N/M
-36.5
N/M

0
0
0
0
0
0

2
0
3
0
0
0

-192
2
0
1
0
-25

60,217
-4,848
3,766
-3,378
47,533
-36,609

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

71,808,679
33,727,298
22,213,805
22,074,006
2,574,448
968,769
996,138
351,853
100,903
347,453
179,386
20,727

79,984,759
40,334,338
22,393,371
22,803,490
2,446,736
1,021,146
763,470
323,010
77,484
391,671
217,997
19,107

81,212,198
38,531,826
24,203,418
20,746,687
2,420,184
1,016,489
698,674
292,130
81,116
360,565
150,937
18,082

77,787,391
37,365,369
24,025,868
20,017,155
2,297,506
974,355
673,720
305,141
89,804
379,469
140,984
18,960

77,758,364
44,157,011
24,629,775
18,289,804
2,324,853
1,029,279
645,046
291,190
135,907
338,091
163,812
5,903

-7.7
-23.6
-9.8
20.7
10.7
-5.9
54.4
20.8
-25.8
2.8
9.5
251.1

52
32
26
0
0
0
0
0
0
0
0
0

4,719
3,502
3,980
1,739
0
0
4
11
15
3
0
0

18,001
25,561
24,859
3,350
57
0
31
102
21
41
3
0

71,785,908
33,698,202
22,184,939
22,068,917
2,574,391
968,769
996,103
351,741
100,866
347,409
179,383
20,727

28.7
48.5

26.0
53.2

23.5
55.1

23.5
56.2

26.1
58.1

0.1
0.1

0.4
0.3

0.6
0.5

32.7
55.3

77.3

79.2

78.6

79.7

84.3

0.2

0.7

1.1

87.9

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

91.0

83.0

69.0

13.0

264.0

-65.5

0.0

0.0

0.0

91.0

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

250
11,275,850
8,458,142

244
11,015,493
8,262,859

247
10,889,636
8,185,855

243
10,638,660
7,997,380

252
10,559,491
7,964,587

-0.8
6.8
6.2

11
759
634

86
39,941
32,879

90
314,083
247,290

63
10,921,068
8,177,340

Derivative Contracts by Underlying Risk Exposure
Interest rate�������������������������������������������������������������������� 170,690,631 187,909,519 188,493,096 181,282,028 189,138,537
Foreign exchange���������������������������������������������������������� 32,536,146 33,675,874 30,164,255 29,208,486 27,636,688
Equity�����������������������������������������������������������������������������
2,559,758
2,300,741
2,119,239
2,089,047
2,011,294
Commodity & other��������������������������������������������������������
1,205,276
1,320,794
1,206,811
1,256,235
1,200,547
Total�������������������������������������������������������������������������������� 206,991,811 225,206,928 221,983,401 213,835,794 219,987,066

-9.8
17.7
27.3
0.4
-5.9

75
0
0
0
75

1,934
0
0
0
1,934

85.7
83.2
31.2
-49.9
51.4

0
0
0
0
0

0
0
0
0
0

29
3
-1
-1
31

633
2,837
644
255
4,370

0.0
0.0

0.1
0.5

0.9
5.5

3.9
19.2

Risk-Based Capital: Credit Equivalent Amount
Total current exposure to tier 1 capital (%)�������������������
Total potential future exposure to tier 1 capital (%)������
Total exposure (credit equivalent amount)
to tier 1 capital (%)�����������������������������������������������������

22,353 170,666,270
3,570
32,532,576
0
2,559,758
15
1,205,261
25,938 206,963,864

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

663
2,840
643
255
4,401

-826
4,892
652
946
5,664

2,878
2,026
722
795
6,421

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

357
1,550
490
509
2,906

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

3.8
18.8

4.8
23.8

5.4
24.6

5.4
26.9

2.5
11.3

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

1,274
13,613,308
10,218,363

1,271
13,421,530
10,061,662

1,287
13,229,856
9,938,935

1,282
12,945,001
9,738,920

1,253
12,763,130
9,611,265

1.7
6.7
6.3

59
4,225
3,507

768
321,833
264,712

353
1,058,035
839,661

94
12,229,215
9,110,483

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

3,248,919
647,004
17,361
5,602
3,918,885

2,984,963
724,435
16,530
6,216
3,732,144

3,060,043
819,319
16,223
7,586
3,903,171

3,135,945
849,536
15,965
6,825
4,008,271

3,942,711
843,789
16,724
8,327
4,811,550

-17.6
-23.3
3.8
-32.7
-18.6

176
0
0
0
176

15,376
2,209
63
3
17,651

66,151
979
327
87
67,544

3,167,217
643,816
16,970
5,512
3,833,515

All line items are reported on a quarterly basis.
N/M - Not Meaningful
* Include spot foreign exchange contracts. All other references to foreign exchange contracts in which notional values or fair values are reported exclude spot foreign exchange contracts.
** Derivative contracts subject to the risk-based capital requirements for derivatives.
*** The reporting of credit losses on derivatives is applicable to all banks filing the FFIEC 031 report form and to those banks filing the FFIEC 041 report form that have $300 million or more
in total assets.

FDIC Quarterly

12

2015, Volume 9, No. 1

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

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

4th
Quarter
2014

3rd
Quarter
2014

2nd
Quarter
2014

1st
Quarter
2014

4th
% Change Less Than
$100
$1 Billion Greater
Quarter
13Q4$100
Million to
to $10
Than $10
2013
14Q4
Million
$1 Billion Billion
Billion

Number of institutions reporting securitization activities�����������������������������������������
Outstanding Principal Balance by Asset Type
1-4 family residential loans��������������������������������������������������������������������������������
Home equity loans���������������������������������������������������������������������������������������������
Credit card receivables�������������������������������������������������������������������������������������
Auto loans����������������������������������������������������������������������������������������������������������
Other consumer loans���������������������������������������������������������������������������������������
Commercial and industrial loans�����������������������������������������������������������������������
All other loans, leases, and other assets����������������������������������������������������������
Total securitized and sold������������������������������������������������������������������������������������������

77

74

73

76

83

-7.2

1

24

18

34

$847,494
36
18,499
3,951
6,191
11
96,257
972,438

$845,272
38
16,782
4,198
6,425
10
95,099
967,824

$844,184
39
16,692
4,312
4,945
1,217
94,757
966,146

$598,462
41
16,349
4,735
4,462
1,881
96,071
722,001

$610,275
42
19,405
4,676
4,607
1,987
101,456
742,448

38.9
-14.3
-4.7
-15.5
34.4
-99.4
-5.1
31.0

$16
0
0
0
0
0
0
16

$2,399
0
75
0
2
9
3,538
6,022

$19,105
0
0
1,276
0
0
4,927
25,308

$825,974
36
18,424
2,675
6,189
2
87,791
941,091

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���

2,915
0
1,529
0
194
0
1,369
6,007
17

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

2,908
0
1,450
0
192
25
1,416
5,991
17

2,912
0
1,455
5
174
38
1,308
5,892
120

2,809
0
603
0
164
27
1,633
5,236
121

3.8
0.0
153.6
0.0
18.3
-100.0
-16.2
14.7
-86.0

0
0
0
0
0
0
0
0
0

5
0
30
0
0
0
1
37
0

51
0
0
0
0
0
0
51
0

2,858
0
1,499
0
194
0
1,368
5,919
17

3.9
7.5
0.7
0.9
4.9
0.0
0.3
3.5

3.9
8.0
0.8
0.7
4.8
0.0
0.4
3.5

3.5
9.1
0.8
0.7
5.5
0.0
0.4
3.2

3.3
8.8
0.9
0.6
5.2
0.0
0.3
2.9

4.3
10.4
0.8
1.0
5.6
0.0
0.8
3.7

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

1.4
0.0
1.7
0.0
0.0
0.0
0.5
0.9

4.3
0.0
0.0
0.0
0.0
0.0
0.1
3.3

3.9
7.5
0.7
1.3
4.9
0.0
0.3
3.5

2.2
43.3
0.5
0.1
5.3
2.4
3.3
2.3

2.2
42.0
0.5
0.1
5.2
3.0
6.5
2.6

2.3
40.3
0.6
0.1
6.3
0.0
9.2
2.9

3.3
37.8
0.7
0.1
6.7
0.0
8.7
3.9

3.4
36.5
0.6
0.1
7.3
0.0
9.2
4.1

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

1.6
0.0
1.7
0.0
0.0
2.9
0.7
1.1

5.0
0.0
0.0
0.0
0.0
0.0
1.1
4.0

2.1
43.3
0.5
0.1
5.3
0.0
3.5
2.2

0.4
1.0
1.7
0.2
0.8
0.0
0.9
0.4

0.3
0.1
1.5
0.1
0.6
0.0
0.6
0.3

0.2
0.1
1.2
0.1
0.3
0.0
0.9
0.3

0.1
-0.1
0.6
0.0
0.2
0.0
0.7
0.2

0.9
0.2
2.2
0.2
0.9
0.0
0.9
0.9

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.2
0.0
7.9
0.0
0.0
0.0
0.0
0.2

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.4
1.0
1.7
0.3
0.8
0.0
0.9
0.4

0
12,247
0

0
12,198
0

0
12,905
2

0
13,116
2

0
12,850
3

0.0
-4.7
-100.0

0
0
0

0
324
0

0
0
0

0
11,923
0

0
0
0

0
0
0

0
0
0

0
0
48

0
0
52

0.0
0.0
-100.0

0
0
0

0
0
0

0
0
0

0
0
0

Securitized Loans, Leases, and Other Assets 30-89 Days Past Due (%)
1-4 family residential loans��������������������������������������������������������������������������������
Home equity loans���������������������������������������������������������������������������������������������
Credit card receivables�������������������������������������������������������������������������������������
Auto loans����������������������������������������������������������������������������������������������������������
Other consumer loans���������������������������������������������������������������������������������������
Commercial and industrial loans�����������������������������������������������������������������������
All other loans, leases, and other assets����������������������������������������������������������
Total loans, leases, and other assets�����������������������������������������������������������������������
Securitized Loans, Leases, and Other Assets 90 Days or More Past Due (%)
1-4 family residential loans��������������������������������������������������������������������������������
Home equity loans���������������������������������������������������������������������������������������������
Credit card receivables�������������������������������������������������������������������������������������
Auto loans����������������������������������������������������������������������������������������������������������
Other consumer loans���������������������������������������������������������������������������������������
Commercial and industrial loans�����������������������������������������������������������������������
All other loans, leases, and other assets����������������������������������������������������������
Total loans, leases, and other assets�����������������������������������������������������������������������
Securitized Loans, Leases, and Other Assets Charged-off
(net, YTD, annualized, %)
1-4 family residential loans��������������������������������������������������������������������������������
Home equity loans���������������������������������������������������������������������������������������������
Credit card receivables�������������������������������������������������������������������������������������
Auto loans����������������������������������������������������������������������������������������������������������
Other consumer loans���������������������������������������������������������������������������������������
Commercial and industrial loans�����������������������������������������������������������������������
All other loans, leases, and other assets����������������������������������������������������������
Total loans, leases, and other assets�����������������������������������������������������������������������
Seller's Interests in Institution's Own Securitizations - Carried as Loans
Home equity loans���������������������������������������������������������������������������������������������
Credit card receivables�������������������������������������������������������������������������������������
Commercial and industrial loans�����������������������������������������������������������������������
Seller's Interests in Institution's Own Securitizations - Carried as Securities
Home equity loans���������������������������������������������������������������������������������������������
Credit card receivables�������������������������������������������������������������������������������������
Commercial and industrial loans�����������������������������������������������������������������������

Assets Sold with Recourse and Not Securitized

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

1,104

1,104

1,101

1,088

1,084

1.8

135

744

176

49

40,885
714
91
69,561
111,251

41,064
709
52
66,271
108,096

42,240
727
53
65,112
108,131

43,720
755
69
65,974
110,518

46,519
776
62
67,794
115,150

-12.1
-8.0
46.8
2.6
-3.4

1,605
0
0
1
1,606

14,621
2
13
95
14,731

8,993
29
77
1,195
10,295

15,666
683
0
68,270
84,618

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

9,887
137
27
17,955
28,006

9,848
140
23
17,233
27,244

9,646
141
24
16,849
26,660

9,573
155
33
16,970
26,732

10,756
160
27
17,058
28,002

-8.1
-14.4
0.0
5.3
0.0

113
0
0
1
114

2,171
2
13
15
2,201

3,367
3
13
71
3,454

4,236
131
0
17,869
22,237

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

126
44,248

132
41,590

134
42,375

138
42,058

148
44,707

-14.9
-1.0

12
9

70
170

25
276

19
43,793

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

1,150

918

1,122

1,017

981

17.2

0

0

0

1,150

4,412,810 4,461,406 4,556,249 4,712,533

3,920,955

Other
Assets serviced for others*��������������������������������������������������������������������������������������� 4,416,458
Asset-backed commercial paper conduits
Credit exposure to conduits sponsored by institutions and others������������������
11,981
Unused liquidity commitments to conduits sponsored by institutions
28,924
	  and others�������������������������������������������������������������������������������������������������������
Net servicing income (for the quarter)����������������������������������������������������������������������
1,207
Net securitization income (for the quarter)���������������������������������������������������������������
339
Total credit exposure to Tier 1 capital (%)**�������������������������������������������������������������
5.5

-6.3

5,279

193,041

297,183

10,189

12,129

12,110

12,317

-2.7

5

0

5

11,972

27,948
2,886
384
5.3

28,274
2,773
318
5.4

30,515
2,142
285
5.4

31,113
4,627
377
5.8

-7.0
-73.9
-10.1

0
7
0
0.9

0
187
5
1.8

178
105
13
2.3

28,746
908
322
6.5

* The amount of financial assets serviced for others, other than closed-end 1-4 family residential mortgages, is reported when these assets are greater than $10 million.
** Total credit exposure includes the sum of the three line items titled “Total credit exposure” reported above.

FDIC Quarterly

13

2015, Volume 9, No. 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���������������������������������������������������������
Employee benefit and retirement-related trust and
agency accounts:
Employee benefit - defined contribution����������������������������
Employee benefit - defined benefit������������������������������������
Other employee benefit and retirement-related
	 accounts��������������������������������������������������������������������������
Corporate trust and agency accounts���������������������������������������
Investment management and investment advisory
agency accounts��������������������������������������������������������������������
Other fiduciary accounts�����������������������������������������������������������
Total managed fiduciary accounts:
Assets���������������������������������������������������������������������������������
Number of accounts�����������������������������������������������������������
Fiduciary and related assets - nonmanaged assets
Personal trust and agency accounts����������������������������������������
Employee benefit and retirement-related trust and
agency accounts:
Employee benefit - defined contribution����������������������������
Employee benefit - defined benefit������������������������������������
Other employee benefit and retirement-related accounts��
Corporate trust and agency accounts���������������������������������������
Other fiduciary accounts�����������������������������������������������������������
Total nonmanaged 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 employee benefit and retirement-related 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�������������������������������
Collective investment funds and common trust funds
(market value)
Domestic equity funds��������������������������������������������������������
International/global equity funds���������������������������������������
Stock/bond blend funds�����������������������������������������������������
Taxable bond funds������������������������������������������������������������
Municipal bond funds���������������������������������������������������������
Short-term investments/money market funds�������������������
Specialty/other funds���������������������������������������������������������
Total collective investment funds����������������������������������������������

FDIC Quarterly

Asset Size Distribution

Dec 31
2014
6,509
1,925
1,786
139
1,437
1,322
115
1,358
1,250
108

Dec 31
2013
6,812
1,991
1,847
144
1,474
1,356
118
1,397
1,287
110

Dec 31
2012
7,083
2,035
1,890
145
1,509
1,391
118
1,425
1,316
109

Dec 31
2011
7,357
2,103
1,945
158
1,549
1,424
125
1,475
1,356
119

% Change
2013-2014
-4.4
-3.3
-3.3
-3.5
-2.5
-2.5
-2.5
-2.8
-2.9
-1.8

Less
Than $100
Million
1,872
272
252
20
170
151
19
157
138
19

689,810
8,695
79,671
101,054
180,592
106,171
189,900
198,865
2,913,836
1,997
44,090
124,397

671,348
7,903
97,316
127,030
176,967
113,048
210,851
224,723
2,696,901
1,936
47,344
101,484

620,437
6,888
73,891
127,203
188,959
123,659
216,496
249,140
2,285,814
1,979
47,780
130,329

590,720
2,513
32,497
105,356
190,756
120,634
168,266
250,388
1,914,375
1,676
42,400
111,270

2.7
10.0
-18.1
-20.4
2.0
-6.1
-9.9
-11.5
8.0
3.2
-6.9
22.6

16,306
28
724
2,467
6,357
3,034
31
7,614
38,271
357
1,250
1,037

70,392
1,038
5,803
3,672
9,001
7,512
185
6,510
130,790
282
7,281
14,708

71,058
187
6,109
13,569
20,084
13,114
574
14,065
191,690
317
6,492
9,239

532,054
7,442
67,035
81,346
145,150
82,511
189,110
170,676
2,553,085
1,041
29,067
99,413

361,688
612,609

403,358
582,751

391,320
536,981

350,146
509,157

-10.3
5.1

1,076
1,984

7,348
8,621

10,761
20,125

342,502
581,879

310,988
20,957

276,831
22,832

232,272
26,349

226,786
26,208

12.3
-8.2

3,620
7

27,252
453

37,050
3,666

243,066
16,832

1,562,067
391,149

1,299,675
548,705

1,205,463
439,316

1,008,692
227,747

20.2
-28.7

36,072
2,103

62,184
10,533

109,908
22,874

1,353,902
355,639

3,949,267
1,640,907

3,805,501
1,557,892

3,452,138
1,432,574

2,939,455
1,384,740

3.8
5.3

61,169
79,733

186,782
260,251

275,442
291,057

3,425,874
1,009,866

289,438

277,994

263,746

270,066

4.1

9,816

22,361

20,590

236,672

2,208,443
4,208,533
1,633,203
2,572,387
3,503,841

3,122,490
3,983,936
2,637,899
2,473,708
3,353,847

2,572,659
3,488,956
2,302,988
2,621,721
2,826,297

2,244,273
3,921,237
1,815,808
2,813,065
2,520,115

-29.3
5.6
-38.1
4.0
4.5

101,516
14,420
1,836
919
2,483

8,435
23,989
26,807
21,574
30,239

88,352
21,443
33,394
397,085
24,317

2,010,140
4,148,681
1,571,166
2,152,809
3,446,802

14,415,844
3,875,917

15,849,875
14,373,918

14,076,366
14,124,850

13,584,563
13,399,102

-9.0
-73.0

130,991
281,081

133,404
475,186

585,181
187,487

13,566,269
2,932,163

83,495,451
9,339,740

80,166,103
9,477,551

74,236,727
10,381,593

74,108,600
11,127,410

4.2
-1.5

364,875
6,185,016

906,097
552,483

724,417
461,239

81,500,062
2,141,002

4,872

4,655

4,417

4,376

4.7

116

320

523

3,914

1,190
1,382
1,498
1,371
6,995
827
13,088
1,155
32,522
30,804
224

1,281
1,336
1,350
1,318
6,125
816
12,493
1,451
30,992
29,523
245

1,202
1,283
1,194
1,306
5,400
847
11,559
1,386
28,766
28,034
274

1,171
1,755
1,041
1,636
4,952
1,640
9,348
2,137
28,221
25,118
206

-7.1
3.4
11.0
4.0
14.2
1.3
4.8
-20.4
4.9
4.3
-8.6

20
10
38
0
165
2
68
17
438
282
0

50
51
240
37
445
21
324
99
1,684
1,227
3

193
46
204
250
773
7
510
141
2,658
2,115
10

927
1,276
1,016
1,084
5,612
797
12,186
899
27,742
27,180
210

5,406
6,756

5,507
6,562

6,001
6,273

5,374
8,104

-1.8
3.0

0
153

19
374

231
755

5,155
5,475

615,200
193,624
143,065
154,239
4,374
178,284
47,543
1,336,330

373,714
186,382
125,635
145,958
4,263
178,395
77,419
1,091,766

299,291
147,535
114,754
183,240
5,649
163,709
80,365
994,544

274,259
123,322
99,901
212,230
5,981
204,104
81,065
1,000,862

64.6
3.9
13.9
5.7
2.6
-0.1
-38.6
22.4

7,692
8,196
2,641
3,122
43
1,697
618
24,009

761
2,635
290
3,090
332
186
328
7,622

10,568
3,422
1,322
1,976
280
25
5,807
23,399

596,179
179,372
138,813
146,052
3,719
176,375
40,790
1,281,300

14

$100
$1 Billion
Greater
Million to
to
Than
$1 Billion
$10 Billion $10 Billion
3,956
574
107
1,238
339
76
1,169
294
71
69
45
5
912
285
70
858
248
65
54
37
5
860
273
68
810
239
63
50
34
5

2015, Volume 9, No. 1

Quarterly Banking Profile
COMMUNITY BANK PERFORMANCE
Net Income of $4.8 Billion Increased 28 Percent From Fourth Quarter 2013
Higher Net Operating Revenue and Lower Loan Loss Provisions
Boosted Earnings
Full-Year 2014 Net Income Increased From Higher Net Interest Income
All Major Loan Balances Increased From the Previous Quarter and the
Year Before

■
■
■
■

Earnings Increased From Fourth Quarter 2013,
Outpacing Industry

Net Interest Margin Widened 51 Basis Points
Between Community Banks and Industry

Community banks reported net income of $4.8 billion
in fourth quarter 2014, up $1 billion (27.7 percent)
from the year before.1 Higher net operating revenue
(the sum of net interest income and total noninterest
income) and lower loan loss provisions lifted earnings
for the 6,037 community banks. Despite the improved
earnings at community banks, yearly earnings declined
7 percent for the banking industry. About 61 percent of
community banks reported higher year-over-year earnings, while 9.7 percent were unprofitable during the
quarter. The pretax return on assets was 1.18 percent,
down 6 basis points from third quarter 2014, but up
21 basis points from fourth quarter 2013.2

Net interest income—which accounts for about
79 percent of net operating revenue at community
banks—totaled $17.2 billion during fourth quarter
2014, up $1 billion (6.4 percent) from fourth quarter
2013. Community banks contributed more than half
(56 percent) of the banking industry’s annual growth
(up $1.8 billion, or 1.7 percent) in net interest income.
Close to 71 percent of community banks increased net
interest income from the year-earlier quarter. The net
interest margin (NIM) stood at 3.63 percent, down
2 basis points from fourth quarter 2013, as average asset
yields fell more rapidly than the average funding costs.
Community banks posted a NIM 51 basis points above
the industry average—the largest gap since fourth quarter 2006. About 81 percent of community banks
reported NIM above the industry’s average of
3.12 percent.

Prior-period dollar amounts used for comparisons are mergeradjusted, meaning the same institutions identified as community
banks and the industry in the current quarter are used to determine
dollar amounts in prior periods, after taking into account acquisitions.
Performance ratios are not merger-adjusted.
2
Pretax ROA is used for comparison because C corporations are taxed
at the bank level, while S corporations pass tax obligations to their
shareholders—58 percent of community banks were C corporations,
while 35 percent were S corporations during the fourth quarter of 2014.
1

Chart 1

Chart 2
Net Interest Margin

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

Positive Factor
Negative Factor

Billions of Dollars
$1.5
$1.04

Percent

$1.03

-$0.19

$0.53

$0.46

$0.15

Community Banks
All Insured Institutions

4.0

$0.40

$1.0
3.65

3.63

$0.5
3.5
$0.0
-$0.5

3.27
+28%

+6%

Net
Income

Net
Interest
Income

-23%

+13%

+3%

Loan Loss Noninterest Noninterest
Provisions Income
Expense

+990%

+49%

Realized
Gains on
Securities

Income
Taxes

3.12
3.0
2006

Source: FDIC.

FDIC Quarterly

2007

2008

2009

2010

2011

2012

2013

2014

Source: FDIC.

15

2015, Volume 9, No. 1

average asset per employee was $4.7 million in the
most recent quarter, up from $4.5 million in fourth
quarter 2013.

Noninterest Income Expanded 12.8 Percent
From Fourth Quarter 2013
Noninterest income totaled $4.6 billion in the fourth
quarter 2014, up $526 million (12.8 percent) from
the 2013 quarter—outperforming the industry (up
$37.9 million, or 0.1 percent). More than half
(54 percent) of community banks reported higher
noninterest income than a year earlier. Close to
85 percent of the annual increase in noninterest income
was contributed by all other noninterest income (up
$262.6 million, or 16.3 percent) and loan sale r­ evenue
(up $182.9 million, or 26.3 percent).3

Full-Year 2014 Earnings Increased 9.1 Percent
to $18.6 Billion
Full-year 2014 net income totaled $18.6 billion, an
increase of $1.6 billion (9.1 percent) from 2013.
Higher net interest income (up $3.9 billion, or
6.2 percent) and lower loan-loss provisions (down
$658 million, or 20.8 percent) offset a decline in
noninterest income (down $329 million, or
1.8 percent) and an increase in noninterest expense
(up $1.6 billion, or 2.8 percent). Almost three out of
every four community banks (74 percent) reported
higher net interest income from 2013.

Noninterest Expense Increased From
Fourth Quarter 2013
Noninterest expense of $15.3 billion in fourth quarter
2014 increased $458.2 million (3.1 percent) from the
2013 quarter. The annual increase was led by higher
salary employee benefits (up $505 million, or
6.5 percent). Almost two out of every three community banks (62 percent) reported higher noninterest
expense from fourth quarter 2013. Full-time employees
at community banks totaled 442,233 in fourth quarter
2014, up 5,371 (1.2 percent) from a year earlier. The

Close to 77 Percent of Community Banks Increased
Loans From the Year Before

All other noninterest income includes items that are greater than
$25,000 and exceed 3 percent of all other noninterest income
reported. They include income and fees from printing and sale of
checks, earnings on increase in value of cash surrender value of life
insurance, income and fees from automated teller machines, rent and
other income from other real estate owned, safe deposit box rent, net
change in the fair values of financial instru­ments accounted for under
a fair value option, bank card and credit card interchange fees, and
gains on bargain purchases.

Loan balances at community banks totaled $1.4 trillion
during the fourth quarter, up $33 billion (2.5 percent)
from the third quarter 2014. With close to 70 percent
of community banks increasing loans from the previous quarter, quarterly loan growth at community banks
outperformed the banking industry (1.8 percent).
All major loan categories increased from the previous quarter, led by nonfarm nonresidential loans (up
$7.7 billion, or 2 percent), commercial and industrial
loans (up $6.3 billion, or 3.4 percent), 1-to-4 family (up
$5.4 billion, or 1.5 percent), construction and development (up $2.7 billion, or 3.3 percent), and agricultural
production loans (up $2.7 billion, or 5.9 percent). With
more than a quarter (26 percent) of the annual industry

Chart 3

Chart 4

3

Noncurrent Loan Rates for FDIC-Insured Community Banks

Change in Loan Balances and Unused Commitments
Billions of Dollars

FDIC-Insured Community Banks

25.4

Percent of Loan Portfolio Noncurrent
16
C&D Loans

Change 4Q 2014 vs. 4Q 2013

14

Change 4Q 2014 vs. 3Q 2014
19.8

18.6

12
10
12.9

8

10.5
7.7

6.3

2.7

2.7
Nonfarm
Nonresidential
RE

C&I
Loans

Source: FDIC.

FDIC Quarterly

1-to-4
Family
Residential
RE

7.7

5.7

5.4

C&D
Loans

4.2

3.8
1.2

Agricultural Loans to
Production Individuals
Loans

Loan Balances

1.2
Home
Equity

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

2.3
CRE & C&D

6
4
1.1

2

C&I
Loans

0
2006

Unused
Commitments

2007

2008

2009

2010

2011

2012

2013

2014

Source: FDIC.

16

2015, Volume 9, No. 1

Quarterly Banking Profile
loan growth being contributed by community banks,
loan balances for community banks grew $108.1 billion
(8.6 percent) from fourth quarter 2013. With a yearover-year growth of 8.6 percent, community banks
outpaced the industry (5.3 percent). All major loan
categories at community banks increased from the year
earlier, with 42 percent of the yearly increase being
driven by nonfarm nonresidential (up $25.4 billion,
or 6.8 percent) and 1-to-4 family (up $19.8 billion,
or 5.7 percent). Total unused commercial real estate
(CRE) loan commitments—including construction and
development—totaled $66.6 billion during the fourth
quarter 2014, an increase of $2.3 billion (3.6 percent)
from the previous quarter. Growth in unused CRE loan
commitments indicates continued credit extension, as
off-balance and on-balance CRE loans increased from
third quarter 2014.

Noncurrent Rate Continued to Decline
Community banks reported noncurrent loan balances of
$18.7 billion, down $4.4 billion (19.1 percent) from
fourth quarter 2013. Close to 61 percent of community
banks lowered their noncurrent loan balances from the
year before. The noncurrent rate stood at 1.36 percent
in the most current quarter, a decline of 14 basis points
from the previous quarter, and 43 basis points from the
2013 quarter. The noncurrent rate was down 60 basis
points from the banking industry rate of 1.96 percent.
Major loan categories had a decline in noncurrent rates
from fourth quarter 2013, except for credit cards (up
5 basis points). Construction and development loans
continued to have the highest noncurrent rate
(2.64 percent), 55 basis points higher than the industry
rate of 2.09 percent. However, the noncurrent rate for
construction and development loans has declined for
17 consecutive quarters. The quarterly net charge-off
rate was 0.25 percent, down 12 basis points from fourth
quarter 2013, and it remained below the industry rate of
0.48 percent. Major loan categories had a decline in net
charge-off rate from the year earlier, except for credit
cards, which grew 87 basis points. Credit cards continued to have the highest net charge-off rate among the
major loan categories (4.88 percent); however, this
level is well below the 11.9 percent reported in fourth
quarter 2008.

Small Loans to Businesses Increased From the
Previous Quarter and the Year Before
Small loans to businesses—loans to commercial
borrow­ers up to $1 million, and farm loans up to
$500,000—at community banks totaled $299.6 billion
in fourth quarter 2014, up $3.2 billion (1.1 percent)
from third quarter 2014. All small loan categories
increased, led by commercial and industrial loans (up
$1.8 billion, or 2 percent), agricultural production loans
(up $0.8 billion, or 2.8 percent), nonfarm nonresidential loans (up $0.5 billion, or 0.3 percent), and farmland loans (up $0.1 billion, or 0.4 percent). Close to
60 percent of community banks reported higher volume
in small loans to business from fourth quarter 2013,
resulting in an increase of $10 billion (3.4 percent).
More than half (52 percent) of the yearly increase in
small loans to businesses at community banks was led
by commercial and industrial loans (up $5.1 billion, or
5.9 percent). Community banks continued to hold
45 percent of small loans to businesses.

FDIC Quarterly

Four Community Banks Failed in the Fourth Quarter
The number of FDIC-insured community banks totaled
6,037 in fourth quarter 2014, down 70 banks from the
previous quarter. Four community banks failed during
the quarter.
Author:

17

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

2015, Volume 9, No. 1

TABLE I-B. Selected Indicators, FDIC-Insured Community Banks*
Return on assets (%)������������������������������������������������������������������������������������������������������
Return on equity (%)�������������������������������������������������������������������������������������������������������
Core capital (leverage) ratio (%)������������������������������������������������������������������������������������
Noncurrent assets plus other real estate owned to assets (%)������������������������������������
Net charge-offs to loans (%)������������������������������������������������������������������������������������������
Asset growth rate (%)�����������������������������������������������������������������������������������������������������
Net interest margin (%)���������������������������������������������������������������������������������������������������
Net operating income growth (%)����������������������������������������������������������������������������������
Number of institutions reporting�������������������������������������������������������������������������������������
Percentage of unprofitable institutions (%)��������������������������������������������������������������������

2014
0.93
8.49
10.58
1.34
0.21
2.31
3.61
5.37
6,037
6.31

2013
0.90
8.28
10.44
1.73
0.32
0.33
3.59
14.49
6,306
8.40

2012
0.83
7.68
10.18
2.27
0.58
2.25
3.67
56.06
6,541
11.15

2011
0.55
5.19
9.98
2.84
0.87
1.60
3.74
207.25
6,798
16.34

2010
0.21
2.07
9.57
3.25
1.11
-2.27
3.71
211.87
7,014
22.16

2009
-0.14
-1.39
9.30
3.26
1.25
3.50
3.56
-157.91
7,249
29.70

2008
0.18
1.69
9.57
2.29
0.68
4.42
3.63
-69.03
7,445
23.71

* Excludes insured branches of foreign banks (IBAs).

TABLE II-B. Aggregate Condition and Income Data, FDIC-Insured Community Banks
4th Quarter
2014
6,037
442,233

3rd Quarter
2014
6,107
445,091

4th Quarter
2013
6,306
452,938

%Change
13Q4-14Q4
-4.3
-2.4

$2,064,114
1,039,753
364,961
400,398
85,104
50,063
190,501
59,009
1,826
48,599
31,168
590
1,368,438
18,991
1,349,447
448,768
8,743
12,604
244,551

$2,031,691
1,017,248
355,435
396,549
82,913
49,205
186,274
58,288
1,790
46,094
29,467
573
1,336,798
19,460
1,317,338
452,683
9,449
12,569
239,651

$2,017,457
993,090
349,488
392,183
77,261
47,635
179,463
55,611
1,850
43,287
27,910
553
1,298,806
20,264
1,278,542
461,415
11,358
12,639
253,503

2.3
4.7
4.4
2.1
10.2
5.1
6.2
6.1
-1.3
12.3
11.7
6.6
5.4
-6.3
5.5
-2.7
-23.0
-0.3
-3.5

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

2,064,114
1,693,611
1,693,380
230
60,581
1,305,346
125,406
497
15,617
228,983
228,852

2,031,691
1,672,415
1,672,198
217
59,437
1,300,099
117,201
400
15,625
226,049
225,895

2,017,457
1,667,710
1,667,469
241
53,555
1,313,732
118,379
447
14,294
216,628
216,485

2.3
1.6
1.6
-4.5
13.1
-0.6
5.9
11.2
9.3
5.7
5.7

Loans and leases 30-89 days past due�������������������������������������������������������������������������
Noncurrent loans and leases�����������������������������������������������������������������������������������������
Restructured loans and leases��������������������������������������������������������������������������������������
Mortgage-backed securities������������������������������������������������������������������������������������������
Earning assets����������������������������������������������������������������������������������������������������������������
FHLB Advances��������������������������������������������������������������������������������������������������������������
Unused loan commitments���������������������������������������������������������������������������������������������
Trust assets��������������������������������������������������������������������������������������������������������������������
Assets securitized and sold�������������������������������������������������������������������������������������������
Notional amount of derivatives���������������������������������������������������������������������������������������
Full Year
INCOME DATA
2014
Total interest income�������������������������������������������������������������������
$75,696
Total interest expense�����������������������������������������������������������������
9,102
Net interest income��������������������������������������������������������������
66,594
Provision for loan and lease losses��������������������������������������������
2,505
Total noninterest income�������������������������������������������������������������
17,686
Total noninterest expense�����������������������������������������������������������
58,516
Securities gains (losses)�������������������������������������������������������������
559
Applicable income taxes�������������������������������������������������������������
5,194
Extraordinary gains, net��������������������������������������������������������������
2
Total net income (includes minority interests)���������������������
18,627
		
Bank net income������������������������������������������������������������
18,603
Net charge-offs����������������������������������������������������������������������������
2,711
Cash dividends����������������������������������������������������������������������������
9,172
Retained earnings�����������������������������������������������������������������������
9,431
Net operating income�����������������������������������������������������������
18,180

9,515
18,686
10,815
195,080
1,911,229
92,918
250,284
286,949
15,945
43,789
Full Year
2013
$75,695
10,338
65,357
3,196
18,553
59,083
564
4,503
40
17,732
17,709
3,983
8,712
8,997
17,253

9,026
20,022
11,347
197,944
1,879,870
85,853
248,670
238,806
18,900
43,486
4th Quarter
2014
$19,443
2,271
17,172
643
4,628
15,290
167
1,219
1
4,815
4,807
838
3,005
1,802
4,677

10,769
23,245
12,461
203,738
1,858,757
83,871
233,843
275,818
14,862
40,543
4th Quarter
2013
$19,255
2,456
16,799
827
4,218
15,368
25
887
-5
3,954
3,951
1,187
2,654
1,297
3,942

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



FDIC Quarterly

%Change
0.0
-11.96
1.9
-21.6
-4.7
-1.0
-0.8
15.3
-94.1
5.1
5.1
-31.9
5.3
4.8
5.4

-11.6
-19.6
-13.2
-4.2
2.8
10.8
7.0
4.0
7.3
8.0
%Change
13Q4-14Q4
1.0
-7.6
2.2
-22.3
9.7
-0.5
575.1
37.5
N/M
21.8
21.7
-29.4
13.2
38.9
18.7

N/M - Not Meaningful

18

2015, Volume 9, No. 1

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

Fourth Quarter 2014
(dollar figures in millions)

All Community Banks
Number of institutions reporting�����������������������������������
6,037
Total employees (full-time equivalent)�������������������������
442,233

New York
711
87,336

Atlanta
749
58,874

Chicago
1,338
94,098

Kansas City
1,541
72,043

Dallas
San Francisco
1,296
402
95,923
33,959

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

$2,064,114
1,039,753
364,961
400,398
85,104
50,063
190,501
59,009
1,826
48,599
31,168
590
1,368,438
18,991
1,349,447
448,768
8,743
12,604
244,551

$524,271
303,519
123,359
106,515
16,419
16,510
45,246
11,623
201
494
8,910
157
369,635
4,395
365,240
103,299
1,151
4,122
50,459

$253,194
135,639
43,334
59,415
14,957
7,897
20,459
7,818
144
1,063
2,082
96
166,964
2,495
164,469
51,089
2,296
1,274
34,067

$387,949
194,622
71,614
70,898
11,802
12,059
35,084
11,952
466
7,820
5,670
85
255,062
3,812
251,251
87,478
1,767
2,184
45,271

$328,097
143,127
47,107
47,953
10,969
4,483
31,129
10,150
468
27,788
5,324
29
217,490
3,078
214,413
73,990
1,367
1,653
36,675

$402,497
177,804
59,036
73,056
24,226
4,522
41,599
13,735
330
9,091
6,567
119
248,677
3,461
245,216
99,284
1,628
2,432
53,938

$168,106
85,042
20,511
42,560
6,731
4,591
16,983
3,731
217
2,343
2,614
103
110,610
1,750
108,860
33,628
535
940
24,143

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

2,064,114
1,693,611
1,693,380
230
60,581
1,305,346
125,406
497
15,617
228,983
228,852

524,271
412,609
412,476
133
19,134
310,757
48,069
312
5,291
57,991
57,941

253,194
210,481
210,435
47
6,731
163,188
12,774
44
1,669
28,226
28,209

387,949
321,632
321,605
27
11,427
262,863
20,200
68
2,872
43,177
43,142

328,097
268,642
268,642
0
9,316
214,592
21,522
4
1,845
36,084
36,081

402,497
340,105
340,105
0
8,861
252,169
16,294
7
2,338
43,753
43,728

168,106
140,141
140,118
23
5,112
101,776
6,547
63
1,602
19,754
19,752

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

9,515
18,686
10,815
195,080
1,911,229
92,918
250,284
286,949
15,945
43,789

2,691
6,122
2,590
57,569
488,524
38,468
62,408
61,702
5,672
15,338

1,480
3,056
1,923
22,340
232,088
9,624
29,952
12,472
520
5,753

1,791
3,885
2,867
35,103
358,514
13,902
46,735
78,826
6,220
6,749

1,089
1,864
1,264
25,388
304,533
14,912
42,408
76,397
766
5,629

2,035
2,655
1,265
38,400
371,243
12,063
45,335
48,588
672
7,100

430
1,104
907
16,280
156,326
3,949
23,447
8,964
2,095
3,221

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

$19,443
2,271
17,172
643
4,628
15,290
167
1,219
1
4,815
4,807
838
3,005
1,802
4,677

$4,750
705
4,045
216
857
3,482
76
392
0
888
884
165
386
499
830

$2,471
293
2,178
78
557
2,072
17
88
0
514
513
134
303
210
499

$3,588
409
3,180
97
1,214
3,040
23
267
2
1,014
1,012
241
717
295
992

$3,107
367
2,740
102
722
2,341
25
157
-1
885
885
119
522
363
865

$3,920
370
3,549
138
923
3,064
19
184
0
1,106
1,104
151
840
264
1,089

$1,607
126
1,481
13
354
1,290
7
131
0
408
408
28
237
171
403

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

FDIC Quarterly

19

2015, Volume 9, No. 1

Table IV-B. Fourth Quarter 2014, FDIC-Insured Community Banks
All Community Banks
4th Quarter
2014
Performance ratios (annualized, %)
Yield on earning assets��������������������������������������������������
Cost of funding earning assets��������������������������������������
Net interest margin��������������������������������������������������
Noninterest income to assets�����������������������������������������
Noninterest expense to assets���������������������������������������
Loan and lease loss provision to assets������������������������
Net operating income to assets�������������������������������������
Pretax return on assets��������������������������������������������������
Return on assets�������������������������������������������������������������
Return on equity�������������������������������������������������������������
Net charge-offs to loans and leases������������������������������
Loan and lease loss provision to net charge-offs���������
Efficiency ratio����������������������������������������������������������������
Net interest income to operating revenue����������������������
% of unprofitable institutions������������������������������������������
% of institutions with earnings gains������������������������������

4.11
0.48
3.63
0.91
2.99
0.13
0.92
1.18
0.94
8.48
0.25
76.79
69.80
78.77
9.71
61.17

3rd Quarter
2014

Fourth Quarter 2014, Geographic Regions*
New York

4.14
0.49
3.65
0.90
2.94
0.11
0.95
1.24
0.97
8.74
0.17
103.18
68.36
78.95
6.76
62.94

3.93
0.58
3.34
0.66
2.68
0.17
0.64
0.98
0.68
6.15
0.18
130.71
70.69
82.51
10.13
57.38

Atlanta

Chicago

4.30
0.51
3.79
0.89
3.31
0.12
0.80
0.96
0.82
7.34
0.32
58.38
75.32
79.63
14.15
63.82

4.03
0.46
3.57
1.26
3.16
0.10
1.03
1.33
1.05
9.46
0.38
40.34
68.87
72.37
10.09
58.82

Kansas City

Dallas

4.13
0.49
3.64
0.89
2.89
0.13
1.07
1.29
1.09
9.90
0.22
85.78
67.24
79.13
8.05
61.78

4.28
0.40
3.87
0.93
3.09
0.14
1.10
1.30
1.11
10.22
0.25
90.91
68.24
79.37
7.79
63.35

San Francisco
4.18
0.33
3.85
0.86
3.12
0.03
0.97
1.30
0.99
8.34
0.10
45.58
70.03
80.69
11.94
61.44

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

4.10
0.49
3.61
0.89
2.93
0.13
0.91
1.19
0.93
8.49
0.21
92.42
69.10
79.01
6.31
64.12

Full Year
2013

Full Year 2014, Geographic Regions*
New York

4.16
0.57
3.59
0.94
2.99
0.16
0.87
1.12
0.90
8.28
0.32
80.24
69.87
77.89
8.40
53.49

3.93
0.60
3.34
0.64
2.65
0.17
0.61
0.96
0.65
5.89
0.21
117.15
70.61
82.91
8.02
59.35

Atlanta
4.32
0.53
3.79
0.86
3.22
0.12
0.77
1.02
0.79
7.23
0.28
65.81
73.92
80.09
10.15
65.55

Chicago
4.02
0.47
3.55
1.20
3.08
0.12
0.99
1.30
1.00
9.16
0.28
66.25
68.44
73.16
7.77
60.01

Kansas City

Dallas

4.09
0.50
3.59
0.89
2.79
0.10
1.13
1.36
1.15
10.54
0.16
97.85
65.70
78.85
3.76
66.26

4.25
0.42
3.84
0.91
3.02
0.13
1.11
1.32
1.13
10.47
0.18
115.23
67.54
79.49
3.78
67.05

San Francisco
4.15
0.34
3.81
0.88
3.08
0.04
0.96
1.31
0.98
8.25
0.07
90.06
69.62
80.17
9.20
65.92

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

FDIC Quarterly

20

2015, Volume 9, No. 1

Quarterly Banking Profile
Table VI-B. Loan Performance, FDIC-Insured Community Banks
Geographic Regions*
December 31, 2014

All Community Banks

New York

Atlanta

Chicago

Kansas City

Dallas

San Francisco

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

0.71
0.52
0.44
0.25
0.54
1.21
0.48
1.75
1.84
1.74
0.29
0.70

0.72
0.76
0.44
0.18
0.64
1.14
0.37
2.72
3.26
2.71
0.33
0.73

0.88
0.55
0.54
0.29
0.61
1.59
0.65
1.89
1.46
1.90
0.34
0.89

0.74
0.45
0.44
0.43
0.55
1.25
0.51
1.21
1.22
1.21
0.23
0.70

0.52
0.37
0.32
0.17
0.34
0.93
0.51
1.02
2.91
0.93
0.26
0.50

0.83
0.52
0.55
0.44
0.52
1.44
0.51
2.14
1.14
2.17
0.33
0.82

0.37
0.27
0.25
0.18
0.30
0.73
0.43
0.68
0.91
0.66
0.42
0.39

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

1.51
2.64
1.40
0.63
0.82
1.76
1.08
0.84
0.99
0.83
0.58
1.37

1.74
3.13
1.58
0.33
0.90
2.24
1.14
0.95
1.72
0.94
2.30
1.66

1.96
4.38
1.69
1.44
0.81
1.74
1.14
1.88
0.56
1.90
0.61
1.83

1.72
3.13
1.62
1.29
1.01
1.94
1.21
0.48
0.83
0.46
0.45
1.52

0.99
2.03
1.11
0.56
0.48
1.07
1.00
0.49
1.41
0.45
0.27
0.86

1.18
1.46
1.05
0.82
0.59
1.33
0.93
0.83
0.52
0.84
0.33
1.07

1.04
2.00
1.04
0.28
0.60
1.05
1.06
0.37
0.76
0.35
0.52
1.00

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

0.17
0.21
0.15
0.10
0.21
0.20
0.31
0.72
4.30
0.60
0.15
0.21

0.19
0.35
0.12
0.03
0.19
0.27
0.28
0.75
5.54
0.66
0.10
0.21

0.23
0.43
0.22
0.28
0.25
0.19
0.39
0.77
1.59
0.75
0.53
0.28

0.26
0.36
0.27
0.24
0.32
0.27
0.36
0.59
3.28
0.48
0.15
0.28

0.11
0.07
0.15
0.13
0.13
0.12
0.31
0.69
8.73
0.31
0.06
0.16

0.09
0.11
0.08
0.18
0.17
0.11
0.30
0.86
1.68
0.84
0.26
0.18

0.01
-0.28
0.05
0.00
0.00
0.01
0.21
0.51
2.05
0.40
0.25
0.07

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

$1,039.8
85.1
400.4
80.4
50.1
365.0
190.5
59.0
1.8
57.2
79.8
1,369.0

$303.5
16.4
106.5
39.2
16.5
123.4
45.2
11.6
0.2
11.4
9.4
369.8

$135.6
15.0
59.4
5.9
7.9
43.3
20.5
7.8
0.1
7.7
3.1
167.1

$194.6
11.8
70.9
14.0
12.1
71.6
35.1
12.0
0.5
11.5
13.5
255.1

$143.1
11.0
48.0
7.2
4.5
47.1
31.1
10.1
0.5
9.7
33.1
217.5

$177.8
24.2
73.1
6.1
4.5
59.0
41.6
13.7
0.3
13.4
15.7
248.8

$85.0
6.7
42.6
8.0
4.6
20.5
17.0
3.7
0.2
3.5
5.0
110.7

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

250,284
19,549
45,722
85,978

62,408
4,292
13,854
20,058

29,952
3,535
6,469
8,837

46,735
2,106
6,504
17,706

42,408
2,305
5,402
14,634

45,335
5,568
10,139
16,093

23,447
1,743
3,354
8,651

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

FDIC Quarterly

21

2015, Volume 9, No. 1

INSURANCE FUND INDICATORS
■
■
■

Insured Deposits Grow by 1 Percent
DIF Reserve Ratio Rises 13 Basis Points to 1.01 Percent
Four Institutions Fail During Fourth Quarter

Total assets of the 6,509 FDIC-insured institutions
increased by 1.3 percent ($204.4 billion) during the
fourth quarter of 2014. Total deposits increased by
1.4 percent ($167.3 billion), domestic office deposits
increased by 1.9 percent ($195.2 billion), and foreign
office deposits decreased by 2 percent ($27.9 billion).
Domestic noninterest-bearing deposits increased by
1.7 percent ($46.6 billion), savings deposits and interest-bearing checking accounts increased by 0.9 percent
($51.8 billion), and domestic time deposits increased
by 6 percent ($96.8 billion). For the twelve months
ending December 31, total domestic deposits grew
by 5.9 percent ($576.9 billion), with interest-bearing
deposits increasing by 4.7 percent ($336 billion) and
noninterest-bearing deposits rising by 9.2 percent
($240.9 billion).1 Foreign deposits decreased by
0.4 percent, other borrowed money increased by
15.3 percent, while securities sold under agreements
to repurchase declined by 9.3 percent over the same
twelve-month period.2 At the end of the fourth quarter, domestic deposits funded 66.7 percent of industry
assets, the largest share since the fourth quarter of 1993,
when the share was 67.9 percent.

The condition of the Deposit Insurance Fund (DIF)
continues to improve. The DIF increased by
$8.5 billion during the fourth quarter to $62.8 billion.
The main drivers of the increase were a negative provision for insurance losses of $6.8 billion—reflecting a
reduction in estimated losses from failed institution
assets—and assessment income of $2 billion. Interest
revenue, combined with unrealized gains on availablefor-sale securities and all other revenue (net of
expenses) added another $51 million. Fourth quarter
operating expenses reduced the fund balance by
$408 million. For all of 2014, 18 insured institutions
with combined assets of $2.9 billion failed, down from
24 failures with combined assets of $6 billion in 2013.
The DIF’s reserve ratio—the fund balance as a percent
of estimated insured deposits—was 1.01 percent as of
the fourth quarter, up from 0.88 percent in the prior
quarter and 0.79 percent one year earlier.
Effective April 1, 2011, the deposit insurance assessment base changed to average consolidated total assets
minus average tangible equity.4 Revisions to insurance
assessment rates and risk-based pricing rules for large
banks (banks with assets greater than $10 billion) also
became effective on that date.5 Table 1 shows the distribution of the assessment base by institution asset size
category as of the fourth quarter.

Total estimated insured deposits increased by 1 percent
in the quarter ending December 31, and by 3.2 percent
for all of 2014.3 For institutions existing at the start and
the end of the fourth quarter, insured deposits increased
during the quarter at 3,752 institutions (58 percent),
decreased at 2,735 institutions (42 percent), and
remained unchanged at 31 institutions.

Throughout the insurance fund discussion, FDIC-insured institutions
include insured commercial banks and savings associations and,
except where noted, exclude insured branches of foreign banks.
2
Other borrowed money includes FHLB advances, term federal funds,
mortgage indebtedness, and other borrowings.
3
Figures for estimated insured deposits in this discussion include
insured branches of foreign banks, in addition to insured commercial
banks and savings institutions.
1

FDIC Quarterly

There is an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under Dodd-Frank.
5
The Fourth Quarter 2010 Quarterly Banking Profile includes a more
detailed explanation of these changes.
4

22

2015, Volume 9, No. 1

Quarterly Banking Profile
Table 1

Distribution of the Assessment Base for FDIC-Insured Institutions*
by Asset Size
Data as of December 31, 2014
Asset Size
Less Than $1 Billion
$1 - $10 Billion
$10 - $50 Billion
$50 - $100 Billion
Over $100 Billion
Total

Number of
Institutions
5,828
574
72
12
23
6,509

Percent of
Assessment Base**
Total Institutions
($ Bil.)
89.5
$1,184.8
8.8
1,398.9
1.1
1,449.5
0.2
819.2
0.4
8,433.4
100.0
13,285.9

Percent of
Base
8.9
10.5
10.9
6.2
63.5
100.0

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

Dodd-Frank requires that, for at least five years, the
FDIC must make available to the public the reserve
ratio and the Designated Reserve Ratio (DRR) using
both estimated insured deposits and the new assessment
base. As of December 31, 2014, the FDIC reserve ratio
would have been 0.47 percent using the new assessment
base (compared to 1.01 percent using estimated insured

FDIC Quarterly

deposits), and the 2 percent DRR using estimated
insured deposits would have been 0.93 percent using
the new assessment base.
Author:

23

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

2015, Volume 9, No. 1

Table I-C. Insurance Fund Balances and Selected Indicators
4th
Quarter
2014
$54,320

3rd
Quarter
2014
$51,059

2nd
Quarter
2014
$48,893

1st
Quarter
2014
$47,191

2,030

2,009

2,224

2,393

70

80

87

45

0
408

0
406

0
428

0
422

-6,787

-1,663

-204

348

-43

6

6

9

24
8,460

-91
3,261

73
2,166

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

62,780

54,320

33.03

33.27

Reserve Ratio (%)�������������

1.01

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

Deposit Insurance Fund*
4th
3rd
2nd
1st
Quarter
Quarter
Quarter
Quarter
2013
2013
2013
2013
$40,758
$37,871
$35,742
$32,958

3rd
Quarter
2012
$22,693

2nd
Quarter
2012
$15,292

1st
Quarter
2012
$11,827

4th
Quarter
2011
$7,813

2,339

2,526

2,645

2,937

2,833

2,933

3,694

3,209

23

34

54

-9

66

-8

81

20

33

302
436

156
298

0
439

0
436

0
469

0
442

0
407

0
460

0
334

-4,588

-539

-33

-499

-3,344

-84

-807

12

1,533

9

46

51

55

1,878

57

4,095

63

2,599

25
1,702

-277
6,433

71
2,887

-96
2,129

30
2,784

-22
7,734

7
2,531

-108
7,401

160
3,465

40
4,014

51,059

48,893

47,191

40,758

37,871

35,742

32,958

25,224

22,693

15,292

11,827

34.82

36.79

43.19

61.58

66.88

133.73

178.67

222.85

479.49

NM

NM

0.88

0.84

0.80

0.79

0.68

0.64

0.60

0.45

0.35

0.32

0.22

0.17

6,203,524

6,139,153

6,110,547

6,120,779

6,010,854

5,967,558

5,951,124

5,999,614

7,405,043

7,248,466

7,081,206

7,031,331

6,973,468

3.21

2.88

2.68

2.02

-18.83

-17.67

-15.96

-14.67

6.19

7.32

8.55

10.22

10.66

Domestic Deposits����������� 10,408,068 10,213,079 10,099,338
Percent change from
   four quarters earlier�������
5.93
6.04
7.16

9,962,453

9,825,398

9,631,580

9,424,504

9,454,658

9,474,585

9,084,803

8,937,725

8,848,706

8,782,134

5.37

3.70

6.02

5.45

6.85

7.88

6.55

8.40

10.51

11.34

6,739

6,821

6,900

6,949

7,028

7,092

7,190

7,254

7,317

7,366

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

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

6,518

6,598

6,665

2,224

4th
Quarter
2012
$25,224

DIF Reserve Ratios

Deposit Insurance Fund Balance
and Insured Deposits
($ Millions)

Percent of Insured Deposits
1.01
0.80

0.79
0.60

0.64

0.68

0.45
0.32
0.17

0.35

0.22

12/11

6/12

12/12

6/13

12/13

DIF
Balance

DIF-Insured
Deposits

12/11

$11,827

$6,973,468

3/12

15,292

7,031,331

6/12

22,693

7,081,206

0.88

0.84

6/14

12/14

9/12

25,224

7,248,466

12/12

32,958

7,405,043
5,999,614

3/13

35,742

6/13

37,871

5,951,124

9/13

40,758

5,967,558

12/13

47,191

6,010,854

3/14

48,893

6,120,779

6/14

51,059

6,110,547

9/14

54,320

6,139,153

12/14

62,780

6,203,524

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

2014

2013

291
$86,712

467
$152,687

2012
651
$232,701

2011
813
$319,432

2010
884
$390,017

2009
702
$402,782

Failed Institutions
92
157
Number of institutions����������������������������������������������������������������������
18
24
51
140
$34,923
$92,085
Total assets***����������������������������������������������������������������������������������
$2,914
$6,044
$11,617
$169,709
Assisted Institutions****
0
0
Number of institutions����������������������������������������������������������������������
0
0
0
8
$0
$0
$0
$0
$0
Total assets���������������������������������������������������������������������������������������
$1,917,482
* Quarterly financial statement results are unaudited.
NM - Not meaningful
** Beginning in the third quarter of 2009, estimates of insured deposits are based on a $250,000 general coverage limit. The Dodd-Frank Wall Street Reform and Consumer Protection Act
(Dodd-Frank) temporarily provided unlimited coverage for noninterest-bearing transaction accounts for two years beginning December 31, 2010, and ending December 31, 2012.
*** Total assets are based on final Call Reports submitted by failed institutions.
**** Assisted institutions represent eight institutions under a single holding company that received assistance in 2009.

FDIC Quarterly

24

2015, Volume 9, No. 1

Quarterly Banking Profile
Table III-C. Estimated FDIC-Insured Deposits by Type of Institution
(dollar figures in millions)
December 31, 2014
Commercial Banks and Savings Institutions

Number of
Institutions

Total
Assets

Domestic
Deposits*

Est. Insured
Deposits

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

5,642
3,719
1,065
858

$14,484,233
2,296,401
9,955,158
2,232,674

$9,549,646
1,780,740
6,272,963
1,495,944

$5,498,463
1,310,632
3,437,487
750,344

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

867
448
419

1,069,427
706,826
362,601

818,292
546,639
271,654

676,165
456,501
219,664

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

6,509

15,553,660

10,367,939

6,174,628

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

9

96,701

40,130

28,895

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

6,518

15,650,361

10,408,068

6,203,524

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

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range
Quarter Ending September 30, 2014 (dollar figures in billions)
Number of
Annual Rate in Basis Points
Institutions
2.50-5.00
1,476
5.01-7.50
3,043
7.51-10.00
1,177
10.01-15.00
553
15.01-20.00
25
20.01-25.00
267
25.01-30.00
4
30.01-35.00
49
greater than 35.00
4

Percent of Total
Institutions
22.37
46.12
17.84
8.38
0.38
4.05
0.06
0.74
0.06

Amount of
Assessment Base*
$3,451.2
7,985.7
1,007.4
477.4
92.6
54.4
20.5
9.7
8.3

Percent of Total
Assessment Base
26.33
60.93
7.69
3.64
0.71
0.42
0.16
0.07
0.06

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

FDIC Quarterly

25

2015, Volume 9, No. 1

Notes to Users

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

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

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

Tables I-B through VI-B.

Summary of FDIC Research Definition of Community
Banking Organizations

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

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

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2015, Volume 9, No. 1

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

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

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

ACCOUNTING CHANGES

Private Company Accounting Alternatives, Including Accounting
for Goodwill
On January 16, 2014, the FASB issued Accounting Standards
Update (ASU) No. 2014-02, “Accounting for Goodwill.” This
ASU generally permits a private company to elect to amortize
goodwill on a straight-line basis over a period of ten years (or
less than ten years if more appropriate) and apply a simplified
impairment model to goodwill. In addition, if a private company chooses to adopt the ASU’s goodwill accounting alternative, the ASU requires the private company to make an
accounting policy election to test goodwill for impairment at
either the entity level or the reporting unit level. Goodwill
must be tested for impairment when a triggering event occurs
that indicates that the fair value of an entity (or a reporting
unit) may be below its carrying amount. In contrast, existing
U.S. GAAP does not permit goodwill to be amortized, instead
requiring goodwill to be tested for impairment at the reporting
unit level annually and between annual tests in certain circumstances. The ASU’s goodwill accounting alternative, if
elected by a private company, is effective prospectively for
new goodwill recognized in annual periods beginning after
December 15, 2014, and in interim periods within annual
periods beginning after December 15, 2015. Goodwill existing
as of the beginning of the period of adoption is to be amortized prospectively over ten years (or less than ten years if
more appropriate). The ASU states that early application of
the goodwill accounting alternative is permitted for any annual or interim period for which a private company’s financial
statements have not yet been made available for issuance.
A bank or savings association that meets the private company
definition in ASU 2014-02 is permitted, but not required, to
adopt this ASU for Call Report purposes and may choose to
early adopt the ASU. For example, a calendar year private
institution could begin to apply the provisions of ASU 201402 in its Call Report for September 30, 2014, in which case it
would report nine months’ amortization of goodwill existing
as of January 1, 2014, and the amortization of any new goodwill recognized in the first nine months of 2014. Goodwill
amortization expense should be reported unless the amortization is associated with a discontinued operation, in which
case the goodwill amortization should be included within the
results of discontinued as “Extraordinary items and other
adjustments, net of income taxes.”
For additional information on the private company accounting alternative for goodwill, institutions should refer to ASU
2014-02, which is available at http://www.fasb.org/jsp/FASB/
Page/SectionPage&cid=1176156316498.
Definitions of Private Company and Public Business Entity
According to ASU No. 2014-02, “Accounting for Goodwill,”
a private company is a business entity that is not a public

DATA SOURCES
The financial information appearing in this publication is
obtained primarily from the Federal Financial Institutions
Examination Council (FFIEC) Consolidated Reports of
Condition and Income (Call Reports) and the OTS Thrift
Financial Reports submitted by all FDIC-insured depository
institutions. (TFR filers began filing Call Reports effective
with the quarter ending March 31, 2012.) This information is
stored on and retrieved from the FDIC’s Research
Information System (RIS) database.

COMPUTATION METHODOLOGY
Parent institutions are required to file consolidated reports,
while their subsidiary financial institutions are still required
to file separate reports. Data from subsidiary institution
reports are included in the Quarterly Banking Profile tables,
which can lead to double-counting. No adjustments are made
for any double-counting of subsidiary data. Additionally,
­certain adjustments are made to the OTS Thrift Financial
Reports to provide closer conformance with the reporting and
accounting requirements of the FFIEC Call Reports. (TFR
­filers began filing Call Reports effective with the quarter ending March 31, 2012.)
All asset and liability figures used in calculating performance
ratios represent average amounts for the period (beginning-ofperiod amount plus end-of-period amount plus any interim
periods, divided by the total number of periods). For “poolingof-interest” mergers, the assets of the acquired institution(s)
are included in average assets since the year-to-date income
includes the results of all merged institutions. No adjustments
are made for “purchase accounting” mergers. Growth rates
represent the percentage change over a 12-month period in
totals for institutions in the base period to totals for institutions in the current period. For the community bank subgroup, growth rates will reflect changes over time in the
number and identities of institutions designated as community banks, as well as changes in the assets and liabilities, and
income and expenses of group members. Unless indicated
otherwise, growth rates are not adjusted for mergers or other
changes in the composition of the community bank subgroup.
Maximum branch deposit size indexed to equal $1.25 billion in 1985
and $5 billion in 2010.
4

FDIC Quarterly

27

2015, Volume 9, No. 1

business entity. ASU No. 2013-12, “Definition of a Public
Business Entity,” which was issued in December 2013, added
this term to the Master Glossary in the Accounting Standards
Codification. This ASU states that a business entity, such as
a bank or savings association, that meets any one of five criteria set forth in the ASU is a public business entity for reporting purposes under U.S. GAAP, including for Call Report
purposes. An institution that is a public business entity is not
permitted to apply the private company goodwill accounting
alternative discussed in the preceding section when preparing
its Call Report.
For additional information on the definition of a public business entity, institutions should refer to ASU 2013-12, which
is available at http://www.fasb.org/jsp/FASB/Page/
SectionPage&cid=1176156316498.
Reporting Certain Government-Guaranteed Mortgage Loans
Upon Foreclosure
In August 2014, the FASB issued Accounting Standards
Update (ASU) No. 2014-14, “Classification of Certain
Government-Guaranteed Mortgage Loans Upon Foreclosure,”
to address diversity in practice for how government-guaranteed mortgage loans are recorded upon foreclosure. The ASU
updates guidance contained in ASC Subtopic 310-40,
Receivables—Troubled Debt Restructurings by Creditors (formerly FASB Statement No. 15, “Accounting by Debtors and
Creditors for Troubled Debt Restructurings,” as amended),
because U.S. GAAP previously did not provide specific guidance on how to categorize or measure foreclosed mortgage
loans that are government guaranteed.
This guidance is applicable to fully and partially governmentguaranteed mortgage loans. Upon foreclosure, the separate
other receivable should be measured based on the amount of
the loan balance (principal and interest) expected to be
recovered from the guarantor. This other receivable should be
reported in “All other assets.” Any interest income earned on
the other receivable would be reported in “Other interest
income.” Other real estate owned would not be recognized by
the institution.
For institutions that are public business entities, as defined
under U.S. GAAP, ASU 2014-14 is effective for fiscal years,
and interim periods within those fiscal years, beginning after
December 15, 2014. For example, institutions with a calendar
year fiscal year that are public business entities must apply
the ASU in their Call Reports beginning March 31, 2015.
However, institutions that are not public business entities
(i.e., that are private companies) are not required to apply
the guidance in ASU 2014-14 until annual periods ending
after December 15, 2015, and interim periods beginning
after December 15, 2015. Thus, institutions with a calendar
year fiscal year that are private companies must apply the
ASU in their December 31, 2015, and subsequent quarterly
Call Reports. Earlier adoption of the guidance in ASU 201414 is permitted if the institution has already adopted the
amendments in ASU No. 2014-04, “Reclassification of
Residential Real Estate Collateralized Consumer Mortgage
Loans Upon Foreclosure.” Entities can elect to apply ASU
2014-14 on either a modified retrospective transition basis or
a prospective transition basis. For additional information,
institutions should refer to ASU 2014-14, which is available
at http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=
1176156316498.

FDIC Quarterly

Reclassification of Residential Real Estate Collateralized Consumer
Mortgage Loans Upon Foreclosure
In January 2014, the FASB issued Accounting Standards
Update (ASU) No. 2014-04, “Reclassification of Residential
Real Estate Collateralized Consumer Mortgage Loans upon
Foreclosure,” to address diversity in practice for when certain
loan receivables should be derecognized and the real estate
collateral recognized. The ASU updated guidance contained
in Accounting Standards Codification Subtopic 310-40,
Receivables–Troubled Debt Restructurings by Creditors (formerly FASB Statement No.15, “Accounting by Debtors and
Creditors for Troubled Debt Restructurings,” as amended).
Under prior accounting guidance, all loan receivables were
reclassified to other real estate owned (OREO) when the
institution, as creditor, obtained physical possession of the
property, regardless of whether formal foreclosure proceedings
had taken place. The new ASU clarifies when a creditor is
considered to have received physical possession (resulting
from an in-substance repossession or foreclosure) of residential
real estate collateralizing a consumer mortgage loan. Under
the new guidance, physical possession for these residential real
estate properties is considered to have occurred and a loan
receivable would be reclassified to OREO only upon:
— The institution obtaining legal title upon completion of a
foreclosure even if the borrower has redemption rights that
provide the borrower with a legal right for a period of time
after foreclosure to reclaim the property by paying certain
amounts specified by law, or
— The completion of a deed in lieu of foreclosure or similar
legal agreement under which the borrower conveys all
interest in the residential real estate property to the institution to satisfy the loan.
Loans secured by real estate other than consumer mortgage
loans collateralized by residential real estate should continue
to be reclassified to OREO when the institution has received
physical possession of a borrower’s real estate, regardless of
whether formal foreclosure proceedings take place.
For institutions that are public business entities, as defined
under U.S. generally accepted accounting principles, ASU
2014-04 is effective for fiscal years, and interim periods within
those fiscal years, beginning after December 15, 2014. For
example, institutions with a calendar year fiscal year that are
public business entities must apply the ASU in their Call
Reports beginning March 31, 2015. However, institutions
that are not public business entities are not required to apply
the guidance in ASU 2014-04 until annual periods beginning
after December 15, 2014, and interim periods within annual
periods beginning after December 15, 2015. Thus, institutions
with a calendar year fiscal year that are not public business
entities must apply the ASU in their December 31, 2015, and
subsequent quarterly Call Reports. Earlier adoption of the
guidance in ASU 2014-04 is permitted. Entities can elect to
apply the ASU on either a modified retrospective transition
basis or a prospective transition basis. Applying the ASU on a
prospective transition basis should be less complex for institutions than applying the ASU on a modified retrospective transition basis. Under the prospective transition method, an
institution should apply the new guidance to all instances
where it receives physical possession of residential real estate
property collateralizing consumer mortgage loans that occur
after the date of adoption of the ASU. Under the modified
28

2015, Volume 9, No. 1

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

a Result of a Government-Assisted Acquisition of a Financial
Institution,” to address the subsequent measurement of an
indemnification asset recognized in an acquisition of a financial institution that includes an FDIC loss-sharing agreement.
This ASU amends ASC Topic 805, Business Combinations
(formerly FASB Statement No. 141 (revised 2007), “Business
Combinations”), which includes guidance applicable to FDICassisted acquisitions of failed institutions.
Under the ASU, when an institution experiences a change in
the cash flows expected to be collected on an FDIC loss-­
sharing indemnification asset because of a change in the cash
flows expected to be collected on the assets covered by the
loss-sharing agreement, the institution should account for the
change in the measurement of the indemnification asset on
the same basis as the change in the assets subject to indemnification. Any amortization of changes in the value of the
indemnification asset should be limited to the lesser of the
term of the indemnification agreement and the remaining life
of the indemnified assets.
The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2012.
For institutions with a calendar year fiscal year, the ASU takes
effect January 1, 2013. Early adoption of the ASU is permitted.
The ASU’s provisions should be applied prospectively to any
new indemnification assets acquired after the date of adoption
and to indemnification assets existing as of the date of adoption arising from an FDIC-assisted acquisition of a financial
institution. Institutions with indemnification assets arising
from FDIC loss-sharing agreements are expected to adopt ASU
2012-06 for Call Report purposes in accordance with the effective date of this standard. For additional information, refer to
ASU 2012-06, available at http://www.fasb.org/jsp/FASB/
Page/SectionPage&cid=1176156316498.
Goodwill Impairment Testing – In September 2011, the FASB
issued Accounting Standards Update (ASU) No. 2011-08,
“Testing Goodwill for Impairment,” to address concerns about
the cost and complexity of the existing goodwill impairment
test in ASC Topic 350, Intangibles-Goodwill and Other
­(formerly FASB Statement No. 142, “Goodwill and Other
Intangible Assets”). The ASU’s amendments to ASC
Topic 350 are effective for annual and interim goodwill
impairment tests performed for fiscal years beginning after
December 15, 2011 (i.e., for annual or interim tests performed
on or after January 1, 2012, for institutions with a calendar
year fiscal year). Early adoption of the ASU was permitted.
Under ASU 2011-08, an institution has the option of first
assessing qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test described in ASC Topic 350. If, after considering
all relevant events and circumstances, an institution determines it is unlikely (that is, a likelihood of 50 percent or less)
that the fair value of a reporting unit is less than its carrying
amount (including goodwill), then the institution does not
need to perform the two-step goodwill impairment test. If the
institution instead concludes that the opposite is true (that is,
it is likely that the fair value of a reporting unit is less than its
carrying amount), then it is required to perform the first step
and, if necessary, the second step of the two-step goodwill
impairment test. Under ASU 2011-08, an institution may
choose to bypass the qualitative assessment for any reporting
unit in any period and proceed directly to performing the first
step of the two-step goodwill impairment test.
29

2015, Volume 9, No. 1

forming TDR loan, if it is in compliance with its modified
terms. If a TDR is not in compliance with its modified terms,
it is reported as a past-due and nonaccrual loan in the appropriate loan category, as well as distinguished from other past
due and nonaccrual loans. To be considered in compliance
with its modified terms, a loan that is a TDR must not be in
nonaccrual status and must be current or less than 30 days past
due on its contractual principal and interest payments under
the modified repayment terms. A loan restructured in a TDR
is an impaired loan. Thus, all TDRs must be measured for
impairment in accordance with ASC Subtopic 310-10,
Receivables – Overall (formerly FASB Statement No. 114,
“Accounting by Creditors for Impairment of a Loan,” as
amended), and the Call Report Glossary entry for “Loan
Impairment.” Consistent with ASC Subtopic 310-10, TDRs
may be aggregated and measured for impairment with other
impaired loans that share common risk characteristics by using
historical statistics, such as average recovery period and
­average amount recovered, along with a composite effective
interest rate. The outcome of such an aggregation approach
must be consistent with the impairment measurement methods prescribed in ASC Subtopic 310-10 and Call Report
instructions for loans that are “individually” considered
impaired instead of the measurement method prescribed in
ASC Subtopic 450-20, Contingencies – Loss Contingencies
(formerly FASB Statement No. 5, “Accounting for Contin­
gencies”) for loans not individually considered impaired that
are collectively evaluated for impairment. When a loan not
previously considered individually impaired is restructured and
determined to be a TDR, absent a partial charge-off, it generally is not appropriate for the impairment estimate on the loan
to decline as a result of the change from the impairment measurement method prescribed in ASC Subtopic 450-20 to the
methods prescribed in ASC Subtopic 310-10.
Troubled Debt Restructurings and Accounting Standards Update
No. 2011-02 – In April 2011, the FASB issued Accounting
Standards Update (ASU) No. 2011-02, “A Creditor’s
Determination of Whether a Restructuring Is a Troubled
Debt Restructuring,” to provide additional guidance to help
creditors determine whether a concession has been granted to
a borrower and whether a borrower is experiencing financial
difficulties. The guidance is also intended to reduce diversity
in practice in identifying and reporting TDRs. This ASU was
effective for public companies for interim and annual periods
beginning on or after June 15, 2011, and should have been
applied retrospectively to the beginning of the annual period
of adoption for purposes of identifying TDRs. The measurement of impairment for any newly identified TDRs resulting
from retrospective application should have been applied prospectively in the first interim or annual period beginning on
or after June 15, 2011. (For most public institutions, the
ASU takes effect July 1, 2011, but retrospective application
begins as of January 1, 2011.) Nonpublic companies should
apply the new guidance for annual periods ending after
December 15, 2012, including interim periods within those
annual periods. (For most nonpublic institutions, the ASU
took effect January 1, 2012.) Early adoption of the ASU was
permitted for both public and nonpublic entities. Nonpublic
entities that adopt early are subject to a retrospective identi­
fication requirement. For additional information, refer to
ASU 2011-02, available at http://www.fasb.org/jsp/FASB/
Page/SectionPage&cid=1176156316498.

Extended Net Operating Loss Carryback Period – The Worker,
Homeownership, and Business Assistance Act of 2009, which
was enacted on November 6, 2009, permits banks and other
businesses, excluding those banking organizations that
received capital from the U.S. Treasury under the Troubled
Asset Relief Program, to elect a net operating loss carryback
period of three, four, or five years instead of the usual carryback period of two years for any one tax year ending after
December 31, 2007, and beginning before January 1, 2010.
For calendar-year banks, this extended carryback period
applies to either the 2008 or 2009 tax year. The amount of
the net operating loss that can be carried back to the fifth
carryback year is limited to 50 percent of the available taxable income for that fifth year, but this limit does not apply to
other carryback years.
Under generally accepted accounting principles, banks may
not record the effects of this tax change in their balance
sheets and income statements for financial and regulatory
reporting purposes until the period in which the law was
enacted, i.e., the fourth quarter of 2009. Therefore, banks
should recognize the effects of this fourth quarter 2009 tax
law change on their current and deferred tax assets and liabilities, including valuation allowances for deferred tax assets, in
their Call Reports for December 31, 2009. Banks should not
amend their Call Reports for prior quarters for the effects of
the extended net operating loss carryback period.
The American Recovery and Reinvestment Act of 2009,
which was enacted on February 17, 2009, permits qualifying
small businesses, including FDIC-insured institutions, to elect
a net operating loss carryback period of three, four, or five
years instead of the usual carryback period of two years for
any tax year ending in 2008 or, at the small business’s election, any tax year beginning in 2008. Under generally
­accepted accounting principles, institutions may not record
the effect of this tax change in their balance sheets and
income statements for financial and regulatory reporting
­purposes until the period in which the law was enacted, i.e.,
the first quarter of 2009.
Troubled Debt Restructurings and Current Market Interest Rates –
Many institutions are restructuring or modifying the terms of
loans to provide payment relief for those borrowers who have
suffered deterioration in their financial condition. Such loan
restructurings may include, but are not limited to, reductions
in principal or accrued interest, reductions in interest rates,
and extensions of the maturity date. Modifications may be
executed at the original contractual interest rate on the loan,
a current market interest rate, or a below-market interest rate.
Many of these loan modifications meet the definition of a
troubled debt restructuring (TDR).
The TDR accounting and reporting standards are set forth
in ASC Subtopic 310-40, Receivables – Troubled Debt
Restructurings by Creditors (formerly FASB Statement
No. 15, “Accounting by Debtors and Creditors for Troubled
Debt Restructurings,” as amended). This guidance specifies
that a restructuring of a debt constitutes a TDR if, at the date
of restructuring, the creditor for economic or legal reasons
related to a debtor’s financial difficulties grants a concession
to the debtor that it would not otherwise consider.
In the Call Report, until a loan that is a TDR is paid in full or
otherwise settled, sold, or charged off, it must be reported in
the appropriate loan category, as well as identified as a per-

FDIC Quarterly

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2015, Volume 9, No. 1

Quarterly Banking Profile
interim and annual reporting periods thereafter (i.e., as of
January 1, 2010, for banks with a calendar year fiscal year).
Earlier application is prohibited. Banks are expected to adopt
FAS 166 and FAS 167 for Call Report purposes in accordance with the effective date of these two standards. Also,
FAS 166 has modified the criteria that must be met in order
for a transfer of a portion of a financial asset, such as a loan
participation, to qualify for sale accounting. These changes
apply to transfers of loan participations on or after the effective date of FAS 166. Therefore, banks with a calendar year
fiscal year must account for transfers of loan participations on
or after January 1, 2010, in accordance with FAS 166. In general, loan participations transferred before the effective date
of FAS 166 (January 1, 2010, for calendar year banks) are not
affected by this new accounting standard and pre-FAS 166
participations that were properly accounted for as sales under
FASB Statement No. 140 will continue to be reported as
having been sold.
Accounting Standards Codification – refer to previously published Quarterly Banking Profile notes: http://www2.fdic.
gov/qbp/2011sep/qbpnot.html.

Accounting for Loan Participations – Amended ASC Topic
860 (formerly FAS 166) modified the criteria that must be
met in order for a transfer of a portion of a financial asset,
such as a loan participation, to qualify for sale accounting. These changes apply to transfers of loan participations
on or after the effective date of amended ASC Topic 860
(January 1, 2010, for banks with calendar year fiscal year),
including advances under lines of credit that are transferred
on or after the effective date of amended ASC Topic 860
even if the line of credit agreements were entered into before
this effective date. Therefore, banks with a calendar-year fiscal year must account for transfers of loan participations on
or after January 1, 2010, in accordance with amended ASC
Topic 860. In general, loan participations transferred before
the effective date of amended ASC Topic 860 are not affected by this new accounting standard.
Under amended ASC Topic 860, if a transfer of a portion of
an entire financial asset meets the definition of a “participating interest,” then the transferor (normally the lead lender)
must evaluate whether the transfer meets all of the conditions
in this accounting standard to qualify for sale accounting.
Other-Than-Temporary Impairment – When the fair value of an
investment in an individual available-for-sale or held-tomaturity security is less than its cost basis, the impairment is
either temporary or other-than-temporary. The amount of the
total other-than-temporary impairment related to credit loss
must be recognized in earnings, but the amount of total
impairment related to other factors must be recognized in
other comprehensive income, net of applicable taxes. To
determine whether the impairment is other-than-temporary,
an institution must apply the applicable accounting guidance
– refer to previously published Quarterly Banking Profile notes:
http://www2.fdic.gov/qbp/2011mar/qbpnot.html.
ASC Topics 860 & 810 (formerly FASB Statements 166 & 167) –
In June 2009, the FASB issued Statement No. 166,
Accounting for Transfers of Financial Assets (FAS 166), and
Statement No. 167, Amendments to FASB Interpretation
No. 46(R) (FAS 167), which change the way entities account
for securitizations and special purpose entities. FAS 166
revised FASB Statement No. 140, Accounting for Transfers
and Servicing of Financial Assets and Extinguishments of
Liabilities, by eliminating the concept of a “qualifying specialpurpose entity,” creating the concept of a “participating interest,” changing the requirements for derecognizing financial
assets, and requiring additional disclosures. FAS 167 revised
FASB Interpretation No. 46(R), Consolidation of Variable
Interest Entities, by changing how a bank or other company
determines when an entity that is insufficiently capitalized or
is not controlled through voting or similar rights, i.e., a “variable interest entity” (VIE), should be consolidated. Under
FAS 167, a bank must perform a qualitative assessment to
determine whether its variable interest or interests give it a
controlling financial interest in a VIE. If a bank’s variable
interest or interests provide it with the power to direct the
most significant activities of the VIE, and the right to receive
benefits or the obligation to absorb losses that could potentially be significant to the VIE, the bank is the primary beneficiary of, and therefore must consolidate, the VIE.
Both FAS 166 and FAS 167 take effect as of the beginning of
each bank’s first annual reporting period that begins after
November 15, 2009, for interim periods therein, and for

FDIC Quarterly

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository
institutions, premises, fixed assets, direct investments in real
estate, investment in unconsolidated subsidiaries, customers’
liability on acceptances outstanding, assets held in trading
accounts, federal funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid
deposit insurance assessments, and other assets.
All other liabilities – bank’s liability on acceptances, limited-life
preferred stock, allowance for estimated off-balance-sheet credit losses, fair market value of derivatives, and other liabilities.
Assessment base – effective April 1, 2011, the deposit insurance assessment base has changed to “average consolidated
total assets minus average tangible equity” with an additional
adjustment to the assessment base for banker’s banks and custodial banks, as permitted under Dodd-Frank. Previously the
assessment base was “assessable deposits” and consisted of DIF
deposits (deposits insured by the FDIC Deposit Insurance
Fund) in banks’ domestic offices with certain adjustments.
Assets securitized and sold – total outstanding principal balance
of assets securitized and sold with servicing retained or other
seller-provided credit enhancements.
Capital Purchase Program (CPP) – as announced in October
2008 under the TARP, the Treasury Department purchase of
noncumulative perpetual preferred stock and related warrants
that is treated as Tier 1 capital for regulatory capital purposes
is included in “Total equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued
by publicly-traded banks are reflected as well in “Surplus.”
Warrants to purchase common stock or noncumulative preferred stock of not-publicly-traded bank stock are classified in
a bank’s balance sheet as “Other liabilities.”
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

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2015, Volume 9, No. 1

assets. The amount of eligible intangibles (including servicing
rights) included in core capital is limited in accordance with
supervisory capital regulations.
Cost of funding earning assets – total interest expense paid on
deposits and other borrowed money as a percentage of average
earning assets.
Credit enhancements – techniques whereby a company attempts
to reduce the credit risk of its obligations. Credit enhancement may be provided by a third party (external credit
enhancement) or by the originator (internal credit enhancement), and more than one type of enhancement may be
associ­ated with a given issuance.
Deposit Insurance Fund (DIF) – the Bank (BIF) and Savings
Association (SAIF) Insurance Funds were merged in 2006 by
the Federal Deposit Insurance Reform Act to form the DIF.
Derivatives notional amount – the notional, or contractual,
amounts of derivatives represent the level of involvement in
the types of derivatives transactions and are not a quantification of market risk or credit risk. Notional amounts represent
the amounts used to calculate contractual cash flows to be
exchanged.
Derivatives credit equivalent amount – the fair value of the
derivative plus an additional amount for potential future
­credit exposure based on the notional amount, the remaining
maturity and type of the contract.

Earning assets – all loans and other investments that earn
interest or dividend income.
Efficiency ratio – Noninterest expense less amortization of
intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net
operating revenues that are absorbed by overhead expenses,
so that a lower value indicates greater efficiency.
Estimated insured deposits – in general, insured deposits are
total domestic deposits minus estimated uninsured deposits.
Beginning March 31, 2008, for institutions that file Call
Reports, insured deposits are total assessable deposits minus
estimated uninsured deposits. Beginning September 30, 2009,
insured deposits include deposits in accounts of $100,000 to
$250,000 that are covered by a temporary increase in the
FDIC’s standard maximum deposit insurance amount
(SMDIA). The Dodd-Frank Wall Street Reform and
Consumer Protection Act enacted on July 21, 2010, made
permanent the standard maximum deposit insurance amount
(SMDIA) of $250,000. Also, the Dodd-Frank Act amended
the Federal Deposit Insurance Act to include noninterestbearing transaction accounts as a new temporary deposit
insurance account category. All funds held in noninterestbearing transaction accounts were fully insured, without limit,
from December 31, 2010, through December 31, 2012.
Failed/assisted institutions – an institution fails when regulators
take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or
another healthy institution. This action may require the
FDIC to provide funds to cover losses. An institution is
defined as “assisted” when the institution remains open and
receives assistance in order to continue operating.
Fair Value – the valuation of various assets and liabilities on
the balance sheet—including trading assets and liabilities,
available-for-sale securities, loans held for sale, assets and
­liabilities accounted for under the fair value option, and foreclosed assets—involves the use of fair values. During periods
of market stress, the fair values of some financial instruments
and nonfinancial assets may decline.
FHLB advances – all borrowings by FDIC insured institutions
from the Federal Home Loan Bank System (FHLB), as
reported by Call Report filers, and by TFR filers prior to
March 31, 2012.
Goodwill and other intangibles – intangible assets include
­servicing rights, purchased credit card relationships, and other
identifiable intangible assets. Goodwill is the excess of the
purchase price over the fair market value of the net assets
acquired, less subsequent impairment adjustments. Other
intangible assets are recorded at fair value, less subsequent
quarterly amortization and impairment adjustments.
Loans secured by real estate – includes home equity loans,
junior liens secured by 1-4 family residential properties, and
all other loans secured by real estate.
Loans to individuals – includes outstanding credit card balances
and other secured and unsecured consumer loans.
Long-term assets (5+ years) – loans and debt securities with
remaining maturities or repricing intervals of over five years.
Maximum credit exposure – the maximum contractual credit
exposure remaining under recourse arrangements and other
seller-provided credit enhancements provided by the reporting bank to securitizations.

Derivatives transaction types:
Futures and forward contracts – contracts in which the
buyer agrees to purchase and the seller agrees to sell, at a
specified future date, a specific quantity of an underlying
variable or index at a specified price or yield. These contracts exist for a variety of variables or indices, (traditional
agricultural or physical commodities, as well as currencies
and interest rates). Futures contracts are standardized and
are traded on organized exchanges which set limits on
counterparty credit exposure. Forward contracts do not
have standardized terms and are traded over the counter.
Option contracts – contracts in which the buyer acquires
the right to buy from or sell to another party some specified amount of an un­derlying variable or index at a stated
price (strike price) during a period or on a specified future
date, in return for compensation (such as a fee or premium). The seller is obligated to purchase or sell the variable or index at the discretion of the buyer of the
contract.
Swaps – obligations between two parties to exchange a
series of cash flows at periodic intervals (settlement dates),
for a specified period. The cash flows of a swap are either
fixed, or determined for each settlement date by multiplying the quantity (notional principal) of the underlying
variable or index by specified reference rates or prices.
Except for currency swaps, the notional principal is used
to calculate each payment but is not exchanged.
Derivatives underlying risk exposure – the potential exposure
characterized by the level of banks’ concentration in particular underlying instruments, in general. Exposure can result
from market risk, credit risk, and operational risk, as well as,
interest rate risk.
Domestic deposits to total assets – total domestic office deposits
as a percent of total assets on a consolidated basis.

FDIC Quarterly

32

2015, Volume 9, No. 1

Quarterly Banking Profile
Mortgage-backed securities – certificates of participation in
pools of residential mortgages and collateralized mortgage
obligations issued or guaranteed by government-sponsored or
private enterprises. Also, see “Securities,” below.
Net charge-offs – total loans and leases charged off (removed
from balance sheet because of uncollectibility), less amounts
recovered on loans and leases previously charged off.
Net interest margin – the difference between interest and dividends earned on interest-bearing assets and interest paid to
depositors and other creditors, expressed as a percentage of
average earning assets. No adjustments are made for interest
income that is tax exempt.
Net loans to total assets – loans and lease financing receivables, net of unearned income, allowance and reserves, as a
percent of total assets on a consolidated basis.
Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and extraordinary items. Income taxes subtracted from
operating income have been adjusted to exclude the portion
applicable to securities gains (or losses).
Noncurrent assets – the sum of loans, leases, debt securities,
and other assets that are 90 days or more past d­ue, or in nonaccrual status.
Noncurrent loans & leases – the sum of loans and leases 90 days
or more past due, and loans and leases in nonaccrual status.
Number of institutions reporting – the number of institutions
that actually filed a financial report.
New reporters – insured institutions filing quarterly financial
reports for the first time.
Other borrowed funds – federal funds purchased, securities sold
with agreements to repurchase, demand notes issued to the
U.S. Treasury, FHLB advances, other borrowed money, mortgage indebtedness, obligations under capitalized leases and
trading liabilities, less revaluation losses on assets held in
trading accounts.
Other real estate owned – primarily foreclosed property. Direct
and indirect investments in real estate ventures are excluded.
The amount is reflected net of valuation allowances. For
institutions that file a Thrift Financial Report (TFR), the
­valuation allowance subtracted also includes allowances for
other repossessed assets. Also, for TFR filers the components
of other real estate owned are reported gross of valuation
allowances. (TFR filers began filing Call Reports effective
with the quarter ending March 31, 2012.)
Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their
losses) compared to the same period a year earlier.
“Problem” institutions – federal regulators assign a composite
rating to each financial institution, based upon an evaluation
of financial and operational criteria. The rating is based on a
scale of 1 to 5 in ascending order of supervisory concern.
“Problem” institutions are those institutions with financial,
operational, or managerial weaknesses that threaten their
continued financial viability. Depending upon the degree of
risk and supervisory concern, they are rated either a “4” or
“5.” The number and assets of “problem” institutions are
based on FDIC composite ratings. Prior to March 31, 2008,
for institutions whose primary federal regulator was the OTS,
the OTS composite rating was used.

FDIC Quarterly

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

Well-capitalized

Tier 1
Risk-Based
Capital*

Total
Risk-Based
Capital*

≥10

and

≥6

and

Tier 1
Leverage

Tangible
Equity

≥5

–

Adequately
capitalized

≥8

and

≥4

and

≥4

–

Undercapitalized

≥6

and

≥3

and

≥3

–

Significantly
undercapitalized

<6

or

<3

or

<3

Critically
undercapitalized

–

–

–

and

>2
≤2

* As a percentage of risk-weighted assets.

Risk Categories and Assessment Rate Schedule – The current risk
categories became effective January 1, 2007. Capital ratios and
supervisory ratings distinguish one risk category from another.
Effective April 1, 2011, risk categories for large institutions
(generally those with at least $10 billion in assets) were eliminated. The following table shows the relationship of risk categories (I, II, III, IV) for small institutions to capital and
supervisory groups as well as the initial base assessment rates
(in basis points) for each risk category. Supervisory Group A
generally includes institutions with CAMELS composite ratings of 1 or 2; Supervisory Group B generally includes institutions with a CAMELS composite rating of 3; and Supervisory
Group C generally includes institutions with CAMELS composite ratings of 4 or 5. For purposes of risk-based assessment
capital groups, undercapitalized includes institutions that are
significantly or critically undercapitalized.

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2015, Volume 9, No. 1

Supervisory Group
Capital Category

A

1. Well Capitalized

I
5–9 bps

2. Adequately Capitalized
3. Undercapitalized

II
14 bps

Total Base Assessment Rates*

B

C

II
14 bps

III
23 bps

III
23 bps

Large and
Risk
Risk
Risk
Risk
Highly
Category Category Category Category Complex
I
II
III
IV
Institutions

IV
35 bps

Effective April 1, 2011, the initial base assessment rates are 5
to 35 basis points. An institution’s total assessment rate may
be less than or greater than its initial base assessment rate as a
result of additional risk adjustments.
The base assessment rates for small institutions in Risk
Category I are based on a combination of financial ratios and
CAMELS component ratings (the financial ratios method).
As required by Dodd-Frank, the calculation of risk-based
assessment rates for large institutions no longer relies on longterm debt issuer ratings. Rates for large institutions are based
on CAMELS ratings and certain forward-looking financial
measures combined into two scorecards—one for most large
institutions and another for the remaining very large institutions that are structurally and operationally complex or that
pose unique challenges and risks in case of failure (highly
complex institutions). In general, a highly complex institution is an institution (other than a credit card bank) with
more than $500 billion in total assets that is controlled by a
parent or intermediate parent company with more than
$500 billion in total assets or a processing bank or trust company with total fiduciary assets of $500 billion or more. The
FDIC retains its ability to take additional information into
account to make a limited adjustment to an institution’s total
score (the large bank adjustment), which will be used to
determine an institution’s initial base assessment rate.
Effective April 1, 2011, the three possible adjustments to
an institution’s initial base assessment rate are as follows:
(1) Unsecured Debt Adjustment: An institution’s rate may
decrease by up to 5 basis points for unsecured debt. The unsecured debt adjustment cannot exceed the lesser of 5 basis
points or 50 percent of an institution’s initial base assessment
rate (IBAR). Thus, for example, an institution with an IBAR
of 5 basis points would have a maximum unsecured debt
adjustment of 2.5 basis points and could not have a total base
assessment rate lower than 2.5 basis points. (2) Depository
Institution Debt Adjustment: For institutions that hold longterm unsecured debt issued by another insured depository
institution, a 50 basis point charge is applied to the amount
of such debt held in excess of 3 percent of an institution’s
Tier 1 capital. (3) Brokered Deposit Adjustment: Rates for
small institutions that are not in Risk Category I and for large
institutions that are not well capitalized or do not have a
composite CAMELS rating of 1 or 2 may increase (not to
exceed 10 basis points) if their brokered deposits exceed
10 percent of domestic deposits. After applying all possible
adjustments (excluding the Depository Institution Debt
Adjustment), minimum and maximum total base assessment
rates for each risk category are as follows:

FDIC Quarterly

Initial base
assessment rate

5–9

14

23

35

5–35

Unsecured debt
adjustment

-4.5–0

-5–0

-5–0

-5–0

-5–0

Brokered deposit
adjustment

—

0–10

0–10

0–10

0–10

Total Base
Assessment rate

2.5–9

9–24

18–33

30–45

2.5–45

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

Beginning in 2007, each institution is assigned a risk-based
rate for a quarterly assessment period near the end of the
quarter following the assessment period. Payment is generally
due on the 30th day of the last month of the quarter following the assessment period. Supervisory rating changes are
effective for assessment purposes as of the examination transmittal date.
Special Assessment – On May 22, 2009, the FDIC board
approved a final rule that imposed a 5 basis point special
assessment as of June 30, 2009. The special assessment was
levied on each insured depository institution’s assets minus
its Tier 1 capital as reported in its report of condition as of
June 30, 2009. The special assessment was collected
September 30, 2009, at the same time that the risk-based
assessment for the second quarter of 2009 was collected.
The special assessment for any institution was capped at
10 basis points of the institution’s assessment base for the
second quarter of 2009 risk-based assessment.
Prepaid Deposit Insurance Assessments – In November 2009,
the FDIC Board of Directors adopted a final rule requiring
insured depository institutions (except those that are
exempted) to prepay their quarterly risk-based deposit
insurance assessments for the fourth quarter of 2009, and
for all of 2010, 2011, and 2012, on December 30, 2009.
For regulatory capital purposes, an institution may assign a
zero-percent risk weight to the amount of its prepaid
deposit assessment asset. As required by the FDIC’s regulation establishing the prepaid deposit insurance assessment
program, this program ended with the final application of
prepaid assessments to the quarterly deposit insurance
assessments payable March 29, 2013. The FDIC issued
refunds of any unused prepaid deposit insurance assessments on June 28, 2013.
[Note: Effective January 1, 2014, a small number of “advanced
approach institutions” began reporting Tier 1 capital based on
regulatory capital standards approved by the banking agencies
in July 2013. For all other FDIC-insured institutions, prior
existing reporting will continue until January 2015 when
mandatory compliance for all institutions is scheduled to
begin. http://www.fdic.gov/regulations/capital/. At that time a
revised assessment rate schedule will be used to reflect the
changes in the regulatory capital rules. http://www.fdic.gov/
news/news/financial/2014/fil14037.html]

34

2015, Volume 9, No. 1

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

Risk-weighted assets – assets adjusted for risk-based capital
definitions which include on-balance-sheet as well as off-­
balance-sheet items multiplied by risk-weights that range
from zero to 200 percent. A conversion factor is used to assign
a balance sheet equivalent amount for selected off-balancesheet accounts.
Securities – excludes securities held in trading accounts.
Banks’ securities portfolios consist of securities designated as
“held-to-maturity,” which are reported at amortized cost
(book value), and securities designated as “available-for-sale,”
reported at fair (market) value.
Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments
for income taxes. Thrift Financial Report (TFR) filers also
include gains (losses) on the sales of assets held for sale.
(TFR filers began filing Call Reports effective with the quarter ending March 31, 2012.)
Seller’s interest in institution’s own securitizations – the reporting
bank’s ownership interest in loans and other assets that have
been securitized, except an interest that is a form of recourse
or other seller-provided credit enhancement. Seller’s interests
differ from the securities issued to investors by the securitization structure. The principal amount of a seller’s interest is
generally equal to the total principal amount of the pool of
assets included in the securitization structure less the principal amount of those assets attributable to investors, i.e., in the
form of securities issued to investors.
Small Business Lending Fund – The Small Business Lending
Fund (SBLF) was enacted into law in September 2010 as part
of the Small Business Jobs Act of 2010 to encourage lending
to small businesses by providing capital to qualified
community institutions with assets of less than $10 billion.
The SBLF Program is administered by the U.S. Treasury
Department (http://www.treasury.gov/resource-center/
sb-programs/Pages/Small-Business-Lending-Fund.aspx).
Under the SBLF Program, the Treasury Department
purchased noncumulative perpetual preferred stock from
qualifying depository institutions and holding companies
(other than Subchapter S and mutual institutions). When
this stock has been issued by a depository institution, it is
reported as “Perpetual preferred stock and related surplus.”
For regulatory capital purposes, this noncumulative perpetual
preferred stock qualifies as a component of Tier 1 capital.

FDIC Quarterly

35

2015, Volume 9, No. 1

Brick-and-Mortar Banking Remains Prevalent
in an Increasingly Virtual World
The lobbies, tellers, drive-through lanes, and vaults
associated with physical banking offices have long
represented the public face of U.S. banks and thrift
institutions. These offices have traditionally provided
customers with a full spectrum of financial transactions
that support the ordinary business of life: cashing a
check, getting a small business loan, applying for a
mortgage, opening a savings account. Over time, the
spread of automated teller machines (ATMs), the rise
of online and mobile banking, and the formation of
nonbank sources of credit and transaction services have
reduced customers’ day-to-day dependence on physical
offices. Nonetheless, as of June 2014, some 6,669 banks
and thrifts continued to operate 94,725 brick-andmortar offices, providing testament to the enduring
value of physical access to banking services in an
increasingly virtual banking world.

• Growing population and geographic shifts in
population,
• Banking crises,
• Federal and state legislative changes that relaxed
branching laws, and
• Technological innovation and the rise of electronic
banking.
This study discusses the notion of office density in
terms of the number of offices per 10,000 people, facilitating a comparison of how “well-banked” an area is
compared with other areas at particular points in time.
It also takes a closer look at office growth in the most
recent period from 2008 to 2014, using more detailed
data to go beyond studying net changes and explore the
components of gross openings and closings. Overall, the
data provide a better understanding of how bank office
trends affect community banks, as defined in the 2012
FDIC Community Banking Study.2

This report chronicles long-term trends in the banking
offices—the headquarters and branches operated by
federally insured banks and thrift institutions—from
1935 to 2014.1 While the number of offices and their
density relative to population are estimated back to
1935, this report focuses on the period from 1987 to
2014. The availability of detailed, office-level data for
federally insured banks and thrifts during this period
provided the FDIC the ability to explore how population and economic growth, as well as technological and
legislative forces, have shaped the nation’s bank office
footprint over almost three decades.

What are the key considerations in an institution’s
decision to open or close an office? Many of the factors
that determine where to open a new office are specific
to the institution and the market in which it operates:
its business strategy, competition, experience, real estate
costs, and the demographics of the market. Other
factors, such as traffic flow and access to a site from
nearby roads, are also considered. For an office that is
already operating, the institution has data on transactions volume and profitability that can be used when
determining whether it should be closed. The collective
decisions of individual institutions to open and close
offices create the geographic distribution of offices
across cities, counties, states, and ultimately the nation.

The long-term growth of offices in the United States is
highlighted in three distinct cyclical periods since 1987.
The total number of offices declined nearly every year
between 1989 and 1995, and again between 2009 and
2014. These two periods of decline bracketed a period
of significant expansion between 1995 and 2009, when
the total number of offices increased each year. This
expansion varied geographically and occurred along
with the rise of large branch office networks. Four main
factors contributed to changes in the distribution of
offices since 1987:

The number of offices in the United States has
increased over the long term. The interval between
1935 and 2014 can be divided into five distinct periods:
two periods of expansion and three periods of contraction (see Chart 1). The two expansions occurred
between 1945 and 1989, and between 1995 and 2009.
Contractions occurred between 1935 and 1945, and
between 1989 and 1995, and another that began in
2009. Far more offices have been added during

In this paper, “office” refers to the deposit-taking headquarters and
branch offices of federally insured banks and thrifts that are identified
in the FDIC’s annual Summary of Deposits survey. For years before
1987, offices are identified from historical sources. For the Summary
of Deposits definition of “office,” see the 2014 Summary of Deposits
Reporting Instructions, p. 9, https://www2.fdic.gov/sod/pdf/
SOD_Instructions.pdf.
1

FDIC Quarterly

FDIC, 2012 FDIC Community Banking Study (Washington, DC:
Federal Deposit Insurance Corporation, December 2012), https://www.
fdic.gov/regulations/resources/cbi/report/cbi-full.pdf.
2

37

2015, Volume 9, No. 1

e­ xpansions than have been removed during contractions, so that the total number of offices increased by
67,222, or 244 percent, between 1935 and 2014.

Chart 1
Retail Offices of U.S. Commercial Banks and Thrifts
Have Increased Over Time
Total Number of U.S. Bank and Thrift Offices, 1935–2014

Office growth has outpaced the nation’s population
growth over the long term and has tended to follow
regional migration patterns. Between 1970 and 2014,
the U.S. population grew by over 50 percent, while the
number of offices more than doubled. Much of the
nation’s population growth occurred in the Sunbelt
states of the South and West and many of these states
also experienced strong office growth.

100,000
80,000

40,000
Based on Historical Sources (1935–1950)
Every Five Years
Based on Historical Sources (1935–1994)
Based on FDIC Summary of Deposits (1987–2014)

20,000

Domestic migration since 1991 has tended to be from
states in the Northeast and Midwest to those in the
South and West, as shown in Table 1. The patterns of
office changes observed in the Northeast and the South
suggest that migration can exert a strong influence on
where banks locate offices. The Midwest appears to be
an outlier. While net migration to the Midwest was
negative, the institutions there nevertheless added
offices. Factors other than population that help explain
the growth in offices are explored in subsequent sections.

0
1935 1941 1947 1953 1959 1965 1971 1977 1983 1989 1995 2001 2007 2013
Historical sources include: FDIC, Historical Statistics on Banking; U.S. League of Savings
Associations, Savings and Loan Fact Book; America’s Community Bankers, Savings
Institution Sourcebook.

Chart 2
The Number of Offices Has Been Highly Cyclical
Since the 1980s
Total Number of U.S. Bank and Thrift Offices, 1989–2014
100,000

4.8% decline
in banking
offices

95,000

Most offices in the United States are located in metropolitan (metro) areas, and most of the net office growth
since 1987 has occurred in metro areas. Just over
79 percent of offices in 2014 were located in metro
areas, up from 77.8 percent in 1987, with 11 percent
located in micropolitan (micro) areas and the remaining 10 percent located in rural areas.3 Over 90 percent
of the net growth in offices since 1987 occurred in
metro areas, 7 percent occurred in micro areas, and
slightly more than 2 percent in rural areas. Four of the
ten large metropolitan areas that experienced the greatest proportional growth in offices during this period
were located in Texas.4 Six of the ten large metros that
experienced the greatest proportional loss of offices
were located in California.

90,000

5.7% decline
in banking
offices

22.9% growth
in banking
offices

85,000

80,000

75,000

1989

1994

1999

2004

2009

2014

Source: FDIC.

Table 1

Net Domestic Migration
Has Favored the South and West

The ten metropolitan areas with the largest proportional increases in population between 1987 and 2013
were located primarily in the Sunbelt. All but one of
these metros saw at least 32 percent growth in offices
between 1987 and 2014 (see Table 2).

Region

The metropolitan and micropolitan area definitions used in this study
are from the Office of Management and Budget’s 2013 definitions,
which are available at http://www.whitehouse.gov/sites/default/files/
omb/bulletins/2013/b-13-01.pdf. The most recent metro area population data are from 2013. A few dozen offices are located outside of
the 50 states, the District of Columbia, and Puerto Rico, in other U.S.
territories or outlying areas that are not assigned a metropolitan,
micropolitan, or rural designation.
4
Large metros had at least 500,000 people in 2013.
3

FDIC Quarterly

Contraction Cycle
Expansion Cycle

60,000

Annual Average
Net Domestic
Migration,
1991–2014

Absolute Change
in Offices,
1991–2014

Northeast

-266,512

-232

Midwest

-128,922

2,949

West

28,828

1,390

South

366,606

5,570

Sources: FDIC and U.S. Census Bureau.

Population declined or stagnated in some large metros
between 1987 and 2013, and nearly all of these cities saw
declines in the number of offices. The ten large metro areas
in Table 3 that lost the largest percentage of population
38

2015, Volume 9, No. 1

Brick-and-Mortar Banking
Table 2

The Top Ten Large Metro Areas by Population Growth Have Tended to See
Growth in Banking Offices
Percent Change in
Population,
1987–2013

Metro

Percent Change in
Banking Offices,
1987–2014

Absolute Change in
Banking Offices,
1987–2014

Las Vegas-Henderson-Paradise, NV

231.5

169.9

231

Raleigh, NC

145.6

35.4

79

Austin-Round Rock, TX

133.2

91.9

228

McAllen-Edinburg-Mission, TX

127.7

135.9

87

Cape Coral-Fort Myers, FL

123.9

42.7

67

Provo-Orem, UT

119.5

32.8

21

Boise City, ID

114.1

82.2

83

Orlando-Kissimmee-Sanford, FL

109.6

57.8

214

Phoenix-Mesa-Scottsdale, AZ

109.2

36.6

241

Riverside-San Bernardino-Ontario, CA

106.4

9.6

52

Sources: FDIC and U.S. Census Bureau.

Table 3

The Bottom Ten Large Metro Areas by Population Growth Have Tended to See
Declines in Banking Offices
Percent Change in
Population,
1987–2013

Metro
Youngstown-Warren-Boardman, OH-PA

Percent Change in
Banking Offices,
1987–2014

Absolute Change in
Banking Offices,
1987–2014

-10.3

-15.5

-34

New Orleans-Metairie, LA

-6.5

-14.0

-59

Pittsburgh, PA

-5.4

-11.5

-111

Buffalo-Cheektowaga-Niagara Falls, NY

-3.9

2.8

8

Scranton-Wilkes-Barre-Hazleton, PA

-2.4

12.4

25

Cleveland-Elyria, OH

-2.3

-12.1

-97

Toledo, OH

-0.8

-18.9

-41

Dayton, OH

0.8

-12.1

-31

San Juan-Carolina-Caguas, PR

1.1

-3.5

-10

Detroit-Warren-Dearborn, MI

1.3

-3.7

-42

a

Sources: FDIC and U.S. Census Bureau.
a
Population change in Puerto Rico is from 1991 to 2013.

between 1987 and 2013, or gained only a small percentage,
are located primarily in post-industrial sections of northeastern and midwestern states. The fact that New Orleans
experienced the second-largest proportional decline in
population speaks to the extraordinary effects of
Hurricane Katrina.

1989.5 Growth began to slow down in the early 1980s
and plateaued in the late 1980s, before it contracted
between 1989 and 1995. Sustained growth in the
number of offices reemerged between 1995 and 2009,
before once again declining after the financial crisis.
The decline from 2009 through 2014 has been about
as large in absolute terms as that which occurred from
1989 to 1995 (see Chart 2).

Office growth has become more cyclical since the
1980s. The total number of U.S. banking offices
expanded almost continuously between 1945 and

5

FDIC Quarterly

39

In 1982, the number of offices declined by 0.3 percent.

2015, Volume 9, No. 1

Map 1
Most States Have Gained Offices Since 1987

Net Gains and Losses in Bank and Thrift Offices, by State, 1987–2014

States by Net Change in Offices, 1987–2014
Lost Offices (15)
Gained < 350 Offices (25)
Gained > 350 Offices (12)

Source: FDIC.

Like the period that followed the Great Depression,
the two recent periods of decline in banking offices
followed major banking crises. Each of these crisis periods was characterized by weak earnings and bank failures, and many institutions were forced to make tough
decisions about their use of physical assets. By contrast,
the intervening periods of stability were characterized
by relatively strong earnings and few failures, enabling
many institutions to pursue strategies of growth and
expansion. Between 1943 and 1981, the number of
FDIC-insured bank failures averaged fewer than five per
year. However, the onset of problems in the banking
and thrift industries in the early 1980s raised the average number of bank failures to 180 per year between
1982 and 1994. After this crisis subsided, the annual
number of failures fell once again to fewer than five
per year on average between 1995 and 2007. The onset
of the 2008 financial crisis brought about an increase in
failures, with over 100 bank failures on average each
year between 2008 and 2012.

the pattern of office growth has not been uniform across
the country (see Map 1). From 1987 to 2014, the
number of banking offices declined in 13 states, the
District of Columbia, and Puerto Rico, while offices
increased in 37 states. The states that gained the most
offices during this period lie in a band that stretches
through the Midwest from Minnesota to Texas, and that
also includes the southeastern states of Tennessee, Georgia, and Florida. In cases such as Texas, where population increased 62 percent, and Florida, where population
increased 66 percent, large increases in population help
explain increases in the number of bank offices.
Legislative changes have been an important driver of
geographic differences in office growth since the
1980s. One of the most important legislative changes
affecting the geography of banking since the 1980s has
been the relaxation of state unit banking laws.6 In 1979,
12 states were unit banking states that prohibited
branching outright: Colorado, Illinois, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota,

Expansion and contraction of offices varied geographically across the United States. As might be expected,
FDIC Quarterly

6

40

Unit banking states prohibited banks from branching.

2015, Volume 9, No. 1

Brick-and-Mortar Banking
Chart 3

Chart 4

Large Banks Expanded Their Geographic Scope After
the Relaxation of Geographic Restrictions on Branching

Large Banks, in Particular, Grew the Size of Their Office
Networks After the Relaxation of Geographic
Restrictions on Banking

Average Number of States in Which an Institution Operates Offices, 1987–2014

7
6

Average Size of Office Network, 1987–2014

8

Banks Less Than $10 Billion

5.9

Banks More Than $10 Billion

5

Riegle-Neal
Enacted

4

500

7

400

Banks More Than $10 Billion (Right Scale)

2

1.1

1.0

250
200

0
1992

1997

2002

2007

2012

Source: FDIC.

150

186

100

Riegle-Neal
Enacted

1

0
1987

300

3

1.8

450
350

4

4

3

1

450

6

5

2

Banks Less Than $10 Billion (Left Scale)

7

1987

1992

1997

50
2002

2007

2012

0

Source: FDIC.

Oklahoma, Texas, West Virginia, and Wyoming.7 By
1991, all of these former unit banking states had
removed these restrictions.8 As branching restrictions
were removed, many of these states saw large increases
in total banking offices. Of the ten states that gained
the most banking offices between 1987 and 2014, five
were former unit banking states and five were states
that had imposed other types of geographic restrictions
on branching as of 1979.9 The number of offices in the
12 unit banking states increased more than 1.5 percent
from 1989 to 1995, during a time when the total
number of U.S. banking offices was contracting.

Before Riegle-Neal, the permissibility of interstate
acquisitions varied by state.11

Another result of legislative change was the nationwide
expansion of interstate banking. The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994
(Riegle-Neal) established a uniform standard by which
an institution headquartered in one state could branch
into, or acquire banks in, any other state, and allowed
institutions operating subsidiary charters in different
states to combine them into a single interstate bank.10

Both large and small institutions were able to expand
geographically as restrictions were relaxed. The effects
were especially pronounced in the years between the
passage of Riegle-Neal and its nationwide implementation in 1997, when the banking industry experienced its highest annual rates of voluntary charter
consolidation.12 Banking consolidation during this
period led to more expansive geographic footprints
and larger office networks. In 1987, prior to the relaxation of interstate banking restrictions, large institutions (those with at least $10 billion in total assets)
operated offices in only 1.8 states on average. Chart 3
shows that these large institutions substantially
expanded the number of states in which they operated
offices beginning around the same time that interstate
banking restrictions were relaxed nationally; Chart 4
shows that the size of their office networks began to
rise about the same time.

David L. Mengle, “The Case for Interstate Branch Banking,” Economic
Review (November/December 1990): p. 6, https://www.richmondfed.
org/publications/research/economic_review/1990/pdf/er760601.pdf.
8
B. A. Rehm, “Colorado Ready to Finally Allow Branch Banking,”
American Banker (May 10, 1991).
9
Mengle, “Interstate Branch Banking,” 6. Pennsylvania is an example
of a state with some historical geographic restrictions on branching:
Banks were permitted to branch only into counties contiguous with the
county in which they were headquartered. See Jith Jayaratne and
Philip E. Strahan, “The Benefits of Branching Deregulation,” Economic
Policy Review 3, no. 4 (1997): p. 14, http://www.newyorkfed.org/
research/epr/97v03n4/9712jaya.pdf.
10
Susan McLaughlin, “The Impact of Interstate Banking and Branching
Reform: Evidence from the States,” Current Issues in Economics and
Finance 1, no. 2 (1995): p. 1, http://www.newyorkfed.org/research/
current_issues/ci1-2.pdf.

Some states permitted de novo entry by out-of-state institutions,
others permitted entry via acquisition by out-of-state institutions
regardless of where they were headquartered, and others permitted
entry only to out-of-state banks headquartered in certain regions of the
country. See History of the Eighties—Lessons for the Future, vol. 1,
chap. 2 (Washington, DC: Federal Deposit Insurance Corporation,
1997), p. 130, https://www.fdic.gov/bank/historical/history/87_136.pdf.
12
Benjamin R. Backup and Richard A. Brown, “Community Banks
Remain Resilient Amid Industry Consolidation,” FDIC Quarterly, Vol. 8,
No. 2 (2014), p. 34, Chart 2, https://fdic.gov/bank/analytical/
quarterly/2014_vol8_2/article.pdf.

7

FDIC Quarterly

11

41

2015, Volume 9, No. 1

Another ramification of consolidation was the rise of
very large office networks.13 In 1987, only one federally
insured banking institution operated a network with
more than 1,000 offices; most offices were operated by
banks and thrifts that had fewer than 50 offices each.
By 2014, 11 institutions operated about one-third of
all U.S. banking offices, with networks of more than
1,000 offices each (see Chart 5).

Chart 5
Consolidation Has Moved Offices Into
Large Office Networks

Total Offices of Banks and Thrifts,
by Office Network Size of Institution,1987–2014
100,000

>1,000
51–1,000
1–50

90,000
80,000

31,874

70,000
60,000

Amid demographic and legislative changes that helped
reshape branch banking in the United States, farreaching changes in technology have been transforming how people access banking services. In recent
decades, technology has introduced a variety of new
ways for customers to access their accounts and interact
with their banks. The important banking technologies
introduced over the past 50 years include:

50,000

26,905

40,000
30,000
20,000

35,946

10,000
0
1987

Source: FDIC.

1992

1997

2002

2007

2012

for consumers: According to data from the Pew
Research Center, 61 percent of Internet users banked
online in 2013, up from 44 percent in 2005, and
18 percent in 2000.16 The past ten years have seen the
advent of RDC, a technological alternative for one of
the most common teller transactions: depositing checks.
After the 2004 Check Clearing for the 21st Century
Act, banks were authorized to accept electronic deposits
based on digital images of checks. Most recently, the
widespread adoption of internet-enabled smartphones
and tablets has given even more impetus to the development of mobile banking and payments. In 2013,
35 percent of cell phone users said they had used their
phone to check their bank account or perform transactions, up from 18 percent in 2011.17

• ATMs;
• credit and debit cards;
• telephone banking;
• remote deposit capture (RDC)—scanning checks
from a home or business and sending them to the
bank electronically for deposit;
• online (internet) banking—accessing a bank
account via a laptop, desktop, or tablet computer;
and
• mobile banking—accessing a bank account via cell
phone or smartphone.

The cumulative effect of these new technologies has
been a decline in the number of transactions taking
place at physical banking offices. One study shows that
the average number of teller transactions per office
declined by 45 percent between 1992 and 2013, from
11,700 transactions per month to 6,400.18 Using a
credit or debit card has become more common than
writing a check. According to Federal Reserve data,
paper checks accounted for only 15 percent of noncash
payments in 2012, down from 46 percent in 2003. By
contrast, universal credit and debit cards accounted for
58 percent of noncash payments in 2012, up from
38 percent in 2003. The total number of noncash trans-

ATMs made their U.S. debut in 1969 and soon spread
across the nation, reaching 425,000 by 2010.14 Universal credit cards became more common in the 1970s,
followed by debit cards in the 1990s, giving consumers
new payment alternatives at the point of sale.15 Telephone banking appeared in the 1970s, followed by the
beginning of online banking in the 1990s. Online
banking has become an increasingly popular channel
For more about consolidation among FDIC-insured banks and thrifts,
see Backup and Brown, “Community Banks Remain Resilient Amid
Industry Consolidation.”
14
National ATM Council Inc., http://natmc.org/documents/2012/10/
about-the-atm-industry.pdf.
15
For credit cards see Thomas A. Durkin, “Credit Cards: Use and
Consumer Attitudes, 1970–2000,”Federal Reserve Bulletin, September
2000, pp. 624–625, http://www.federalreserve.gov/pubs/
bulletin/2000/0900lead.pdf. For debit cards see Fumiko Hayashi,
­Richard Sullivan, and Stuart E. Weiner, “A Guide to the ATM and Debit
Card Industry,”Federal Reserve Bank of Kansas City, 2003, pp. 41–42,
http://www.kc.frb.org/publicat/psr/bksjournarticles/atmpaper.pdf.
13

FDIC Quarterly

Size of
Office
Network

Susannah Fox, “51% of U.S. Adults Bank Online,” Pew Research
Center (August 7, 2013), p. 9, http://www.pewinternet.org/files/oldmedia//Files/Reports/2013/PIP_OnlineBanking.pdf.
17
Ibid, p. 10. Pew first asked about mobile banking in 2011.
18
Financial Management Solutions Inc., 2013 FMSI Teller Line Study
(N.P., 2013), http://www.fmsi.com/fullpanel/uploads/files/2013-fmsiteller-line-study-white-paper-00001.pdf.
16

42

2015, Volume 9, No. 1

Brick-and-Mortar Banking
actions grew by 50 percent from 2003 to 2012, as the
number of checks written declined.19

Types of Banking Offices
Not all physical banking offices take the same form.
According to the 2014 FDIC Summary of Deposits
survey, more than 90 percent of total banking offices
take the form of stand-alone, full-service offices. At a
distant second are those offices located in another
retail establishment, such as a grocery store (see
Chart 6). Together, in-store offices and stand-alone
offices make up 96 percent of the offices operated by
FDIC-insured institutions.

Even with the innovations of the past 50 years, consumers continue to value and use physical banking offices.
Today there are more banking offices per capita than in
1970, when many of today’s most popular electronic
banking alternatives either did not yet exist or were not
yet widely available. Moreover, according to the 2013
FDIC National Survey of Unbanked and Underbanked
Households, visiting a teller remains the most common
way for households to access their accounts.20 Although
mobile banking would appear to be an appealing substitute for bank office visits, and is a fast-growing option,
it remains one of the least common ways for consumers
to access their accounts.21 Among households that
preferred online or mobile banking, most also reported
visiting tellers to access their accounts.22

Historical sources suggest that in-store branches were
rare among commercial banks until they boomed in
the late 1980s. The number of these offices grew an
average of nearly 30 percent per year from 1986 to
1996.a Although in-store offices can cost considerably
less to open (from one-fifth to one-third of the startup
cost of a stand-alone office), for many banks they tend
to generate fewer loans and deposits—and thus less
income—than stand-alone, full-service offices.b

Nonetheless, as alternative payment and banking methods become more mainstream, fewer transactions are
being conducted at offices. The rise of RDC, more
sophisticated ATM terminals, and the proliferation of
smartphones appear to be reducing the frequency with
which bank customers are visiting their local branch to
perform simple transactions. Moreover, the frequency of
visits is lower for younger individuals. A recent survey
indicates that 19 percent of people ages 18 to 29 visited
a bank or credit union branch in the previous week,
compared with 29 percent of those ages 30 to 49.23
However, the available data on balance show that most
bank customers continue to place value on physical
offices as part of a diverse suite of retail banking options.

Chart 6
Ninety-Six Percent of Offices Are Stand-Alone or
Located Within a Retail Establishment
Percent of Total Offices, by Type of Office, June 2014
100%
90.2%
80%
60%
40%
20%
0%

In order to evaluate how technological alternatives may
affect the total number of physical banking offices, a
measure of how prevalent those offices are relative to
the total demand for banking services is needed. If
physical banking offices were indeed becoming less
prevalent over time, then that would provide some

Stand-Alone In-Store
Full-Service Full-Service
Offices
Offices

Source: FDIC.

0.2%

1.1%

2.7%

Home
LimitedOther
Banking
Service
LimitedOffices Drive-Through Service
Offices
Offices

Christopher A. Williams, “Banks Go Shopping for Customers,”
The Regional Economist (October 1997), N.P., https://www.
stlouisfed.org/publications/re/articles/?id=1789.
b
“US Bank Excels in In-Store Banking” (Retail Banking Strategies,
February 2010); “BOK’s Decision to Ditch In-Store Branches
Shows Banks’ Predicament” (Barlow Research Associates Inc.,
November 2014).
a

Federal Reserve System, The 2013 Federal Reserve Payments
Study—Summary Report and Initial Data Release (Federal Reserve
System, 2013, revised July 2014), p. 42, http://www.frbservices.org/
files/communications/pdf/general/2013_fed_res_paymt_study_
summary_rpt.pdf.
20
FDIC, 2013 FDIC National Survey of Unbanked and Underbanked
Households (Washington, DC: Federal Deposit Insurance Corporation,
October 2014), p. 53, Figure 8.1, https://fdic.gov/householdsurvey/
2013report.pdf.
21
Ibid.
22
Ibid, p. 59, Table 8.3.
23
Chris Kahn, “March 2014 Financial Security Survey,” BankRate.com
(2014), N.P., http://www.bankrate.com/finance/consumer-index/
financial-security-charts-0314.aspx.
19

FDIC Quarterly

5.8%

evidence that new banking technologies may represent
substitutes for those banking offices in serving bank
customers. But if physical banking offices are as prevalent or more prevalent today than they were in the past,
then perhaps technology should not be viewed as a
perfect substitute for brick-and-mortar banking offices.
43

2015, Volume 9, No. 1

Measuring Office Density

Chart 7

There are a number of alternative ways one might
attempt to measure the prevalence of physical banking
offices. All of them are related in some way to population density. For example, because the population of
New York City is more than 125 times greater than
that of Bismarck, North Dakota, the fact that New York
City has more banking offices than Bismarck does not
necessarily mean that banking offices are more prevalent in New York. The density of banking offices should
be expressed by a measure that scales the number of
offices in different places so they can be compared. Past
researchers have taken several approaches to make this
comparison. A recent FDIC study estimated service
areas for offices based on reasonable travel distances.24
Similarly, Ergungor (2010) calculated a measure of
office access for Census tracts in Ohio that uses all
offices within ten miles of a tract’s center.25

Office Density Has Declined in Recent Years,
but Remains Higher Than at Any Time Before 1977
Estimated Number of Bank and Thrift Offices per 10,000 People, United States, 1935–2014

4.0

3.4

3.5
3.0

2.9

2.5 2.2
2.0
1.5
1.0
0.5
0.0

Based on Historical Sources (1935–1950) Every Five Years
Based on Historical Sources (1935–1986) and FDIC Summary of Deposits
(1987–2014)

1935 1941 1947 1953 1959 1965 1971 1977 1983 1989 1995 2001 2007 2013
Sources: FDIC and U.S. Census Bureau. Historical sources include: FDIC, Historical
Statistics on Banking; U.S. League of Savings Associations, Savings and Loan Fact Book;
America’s Community Bankers, Savings Institution Sourcebook.

Chart 8
Office Density Declined Overall Between 1987 and 2014,
but Rose in Former Unit Banking States

A simpler way to express the density of banking offices
is to calculate the number of offices per 10,000 people
for a location. Offices per 10,000 people is easy to
construct and understand, and although other measures
might include additional relevant variables, offices per
10,000 people still can be used to make meaningful
comparisons over time and across geographies. Chart 7
depicts the density of banking offices between 1935
and 2014 in terms of this definition.

State Branching Category as of 1979

Statewide Branching

-0.9

Other Geographic Restrictions
on Branching

-0.5

0.2

Unit Banking

The factors that determine the number of offices
also help shape changes in density. Chart 7 shows
that the density of banking offices increased from 2.2
in 1970 to 2.9 in 2014—a period during which population grew by 56 percent and the number of offices grew
by 109 percent. Thus the per capita density of offices
increased by about one-third during a period when a
number of important banking technologies were being
introduced. Like the total number of banking offices,
the density of banking offices follows cyclical patterns.
Clear and substantial declines in office density were
observed after the banking crises of the 1930s, the
1980s, and the 2000s.

Nation
-0.5

-1.2
-0.8
-0.4
0.0
0.4
Change in Number of Bank and Thrift Offices
per 10,000 People From 1987 to 2014

Sources: FDIC and U.S. Census Bureau.

state restrictions on branching. States with the strongest
restrictions on branching in 1979 saw an increase in
office density once those restrictions were lifted, while
states with some geographic restrictions on branching
saw a decline in density equal to the national average.
The largest decline in density after 1987 was observed
among states that already allowed statewide branching
in 1979. These results are consistent with the idea that
unit banking laws had restricted the desired prevalence
of banking offices in these states before 1987, and that
the elimination of the restrictions contributed to
increases in banking offices since then (see Chart 8).

There is evidence that changes in density at the state
level also have been influenced by the relaxation of
Eric C. Breitenstein, Karyen Chu, Kathy Kalser, and Eric W. Robbins,
“Minority Depository Institutions: Structure, Performance, and Social
Impact,” FDIC Quarterly, Vol. 8, No. 3 (2014): p. 56. https://fdic.gov/
bank/analytical/quarterly/2014_vol8_3/mdi_study.pdf.
25
Ozgur Emre Ergungor, “Bank Branch Presence and Access to Credit
in Low- to Moderate-Income Neighborhoods,” Journal of Money,
Credit, and Banking, Vol. 42, No. 7 (October 2010): pp. 1327–28.
24

FDIC Quarterly

Changes in the density of offices since the 1970s further
suggest that new technologies have had, at best,
a limited effect on the prevalence of offices. Because
mobile, ATM, online, and other alternative banking
channels reduce the number of transactions that require
44

2015, Volume 9, No. 1

Brick-and-Mortar Banking

Changes in Density at the State and County Level
Per capita density can be used to compare the relative
prevalence of physical banking services across geographies
as well as over time. For the United States as a whole, the
density of banking offices has declined by about 15 percent
since 1987. But to the extent that the measure of density
expresses how “well banked” a specific area is, one might
expect to see less well banked areas become more dense
over time, while more densely banked areas become less
dense over time. To the extent that this is the case, the
location of banking offices would represent a “meanreverting” process, where extremes to the high side or the
low side are narrowed by market forces over time.
The data, however, suggest that changes in banking
density over time at the state and county level are generally not mean-reverting. Chart 9 shows that changes in
state-level density between 1987 and 2014 appear to be
unrelated to the density of banking offices in each state
at the beginning of the period. Similarly, Chart 10 shows
that changes in county-level density between 1987 and
2013 also were unrelated to density at the beginning of
the period.a Taken together, these charts suggest that
states and counties that started out with higher-thanaverage density tended to stay that way over time, as did
states and counties with below-average density.
One reason why density tends not to be mean-reverting
across states and counties is the presence of relatively
stable long-term differences in density between metro,
micro, and rural counties. Chart 11 shows that among
these three county types, rural counties exhibit the highest average density, followed by micro counties, with
metro counties showing the lowest average density. The
intuition behind these differences seems clear: Because
people live farther apart in less populated rural areas, a
higher number of banking offices per 10,000 people is
necessary to adequately serve those areas. Chart 11 also
shows that the differences in density between county
types have remained fairly stable over time. Average
density in rural and micro counties, in particular, has
declined very little since 1987. It takes about as many
offices, in per capita terms, to serve rural and micro counties today as it did in 1987. By contrast, density in metro
counties has undergone a 15 percent decline since 1987.

accelerated compared with the period between 1970 and
2000. With rural counties having an average office
density that was nearly twice that of metro counties in
2013, the movement of people out of rural counties and
into metro counties had the effect of lowering the density
of banking offices for the nation as a whole.

Chart 9
State-Level Office Density in 1987 Did Not Predict
Subsequent Changes in Density

Percent Change in the Number of Bank and Thrift Offices per 10,000 People, 1987–2014

1.5
1.0
0.5
0.0
-0.5

R2 = 0.0022

-1.0
-1.5
-2.0

0

1

6
2
3
4
5
Number of Offices per 10,000 People in 1987

7

Sources: FDIC and U.S. Census Bureau.
Note: Includes the District of Columbia and Puerto Rico.

Chart 10
County-Level Office Density in 1987 Did Not Predict
Subsequent Changes in Density

Change in the Number of Bank and Thrift Offices per 10,000 People, 1987–2013

20
15
10
5

R2 = 0.0019

0
-5
-10
-15

0

5
10
15
20
Number of Offices per 10,000 People in 1987

25

Sources: FDIC and U.S. Census Bureau.
Note: Includes counties of the 48 contiguous states.

Chart 11
Differences in Average Density Across County Types
Have Remained Stable Over Time
Number of Bank and Thrift Offices per 10,000 People by County Type, 1987–2013

Part of the decline in U.S. office density that has taken
place since the mid-1980s can be attributed to the multidecade trend of rural depopulation in the United States.b
Between 1980 and 2010, while the nation’s population
was growing by 36 percent, half of U.S. rural counties lost
population. Moreover, the depopulation trend actually

6

The most recent county population data are from 2013.
See John M. Anderlik and Richard D. Cofer Jr., “Long-Term
Trends in Rural Depopulation and Their Implications for Community Banks,” FDIC Quarterly, Vol. 8, No. 2 (2014), https://www.
fdic.gov/bank/analytical/quarterly/2014_vol8_2/article2.pdf.

1

5
4

5.1

5.0

4.1

3.9

3.3
2.8

3
2

a

Metropolitan Counties

Micropolitan Counties

Rural Counties

1990

1999

2008

b

FDIC Quarterly

0

1987

1993

1996

2002

2005

2011

Sources: FDIC and U.S. Census Bureau.

45

2015, Volume 9, No. 1

a visit to a banking office, one might expect that banks
should be able to operate fewer offices and still serve
the same number of customers. However, at 2.9 offices
per 10,000 people in 2014, the density of offices is
currently greater than at any time before 1977, when
many of today’s banking technologies were either not
available or had not yet become mainstream. Despite
the far-reaching innovations that have occurred in the
delivery of banking services, the ongoing presence of
large numbers of physical offices suggests that they still
create real value in allowing banks to interact with
their customers.

Chart 12
FDIC-Insured Institutions Have Opened and Closed
Thousands of Offices Since 2008
Additions and Subtractions From Bank and Thrift Offices, by Source, 2008–2014
New Offices Opened

1,010

Offices Closed Due
to Failures

-1,159

Offices Closed Due
to Mergers

-1,087

-13,324

-20,000 -15,000 -10,000 -5,000

In addition to the long-term trends in the number and
location of offices, it is also important to understand the
components of structural change between periods. For
example, how many new offices were opened by existing banks versus new banks? How many offices were
closed as a result of failures, mergers, or charter consolidations versus rationalization of branch structures by
surviving institutions? The availability of more detailed
data starting in 2008 allows for a closer look at changes
in office structure that can address these issues.

10,122

Offices Newly Added
to Survey

All Other Closings

Components of Structural Change

0

5,000 10,000 15,000 20,000

Changes in Offices, 2008–2014

Sources: FDIC.

Chart 13
Gross Openings of Offices Operated by FDIC-Insured
Institutions, 2008–2014
3,500
81

3,000

Opened by Existing Banks

Opened by New Banks

2,500
2,000

FDIC-insured institutions opened and closed thousands
of offices between 2008 and 2014.26 Chart 12 shows
that just more than 11,000 unique offices were added
to the FDIC’s Summary of Deposits survey during this
six-year period, the vast majority of which were newly
created offices, as opposed to pre-existing offices being
newly added to the survey. Of the 15,500 offices that
were closed over this period, just a small fraction were
closed as a direct result of bank failures or mergers.

15

1,500

18

2,800

1,000

1,731

500
0

2009

Source: FDIC.

2010

21

1,434

1,452

1,362

1,208

2011

2012

2013

2014

Chart 14

Another important recent trend has been a sustained
slowdown in the number of newly created offices, which
was exceeded in almost every year by the number of
offices closed (see Charts 13 and 14). Office openings
since 2008 have been held back in part by a lull in the
creation of new banking charters, while office openings
at existing institutions have also declined in a less than
favorable economic environment. Only 15 new charters
were established between 2010 and 2013, compared
with 510 new charters between 2006 and 2009.27 Some

Gross Closings of Offices Operated by FDIC-Insured
Institutions, 2008–2014
0
-500
-1,000

-2,018

-2,190

-2,021

-2,100

-2,291

-1,500
-2,000
-2,500

-625

-230

-309

-729

Openings and closings are measured from June of each year.
Backup and Brown, “Community Banks Remain Resilient,” p. 35.
New charters include de novo institutions, preexisting institutions that
converted to an insured bank or thrift (such as conversions from
credit unions), as well as any other newly insured banking institution
that filed a year-end financial report.
27

-3,500

-271

Other Office Closings

2009

Source: FDIC.

46

2010

-2,615

-171

-3,000

26

FDIC Quarterly

Net Change
2008–2014:
-4,438

2011

Closed After Merger or Failure

2012

2013

2014

2015, Volume 9, No. 1

Brick-and-Mortar Banking
large institutions have also recently announced plans to
rationalize their branch structures as a means to control
costs after the financial crisis, while others pared back
office expansion plans.28

Chart 15
The Vast Majority of Office Openings and Closings
Occur in Metro Areas
Offices Opened and Closed by FDIC-Insured Institutions, by Area, 2008–2014
Closings

As a percent of offices operating in 2008, more openings and closings of banking offices occurred in metro
areas between 2008 and 2014 than in micro or rural
areas (see Chart 15). While 79 percent of offices were
located in metro areas in 2008, some 85 percent of
office closings and 89 percent of office openings
through 2014 occurred in metro areas. By contrast,
11 percent of offices located in micro areas in 2008 saw
only 9 percent of office closings and 7 percent of office
openings through 2014. Similarly, while 10 percent of
offices were located in rural areas in 2008, rural areas
saw only 6 percent of office closings and 4 percent of
openings through 2014.

9,049

Metro

-13,292

Micro

-1,372

670

Rural

-890

400

-20,000 -15,000 -10,000 -5,000

0

5,000 10,000 15,000 20,000

Sources: FDIC.

Chart 16
A Majority of Offices Continue to Operate
Immediately After a Bank Exit

Notably, the data indicate that the majority of the
offices operated by FDIC-insured institutions that fail or
merge out of existence continue operating under new
ownership after the failure or merger. About 78 percent
of the offices of failed banks continued to report in the
next Summary of Deposits survey, as did nearly
85 percent of the offices operated by banks undergoing
a voluntary merger or consolidation (see Chart 16).

Percent of Offices Surviving Immediately After a Bank Closing, by Type of Closing,
September 2008–June 2014

100%
80%

78.4%

84.6%
60.0%

60%
40%
20%

Although banks of all sizes have closed offices since
2008, office closings have been concentrated among
just a few large institutions. Since 2008, just 15 institutions have accounted for one-third of all gross
office closings. These 15 institutions include some
of the nation’s largest banks, as well as large regional
banks, two of which—Washington Mutual and
Wachovia—failed or were forced to merge during the
crisis. Other large institutions have pared back their
extensive office networks as part of their post-crisis
restructuring efforts. In all, just 52 institutions have
accounted for one-half of office closings since 2008.

0%

Bank Failure

Bank Voluntary Merger /
Consolidation

Other Bank Closing

Type of Bank Closing

Source: FDIC.
Note: Reflects percent of offices appearing on next FDIC Summary of Deposits survey
following bank closing.

charters declined by 45 percent between 1994 and
2014, while the number of noncommunity bank charters declined by 71 percent. However, amid these
substantial declines in banking charters, the number of
community banking offices declined by just 6.5 percent,
while the number of noncommunity banking offices
increased by 36 percent (see Chart 17).30 The net result
was an increase in the average size of the community
bank office network, from 3.2 offices in 1994 to
5.5 offices in 2014, while the average number of offices
operated by noncommunity banks rose from 26.4 to
123.5. So while community banks experienced modest
increases in the size of their office networks, these
networks remained at sizes that were generally more
amenable to local control and decision-making than

Trends in Community Bank Offices
Because of their focus on relationship banking, trends
in office structure are particularly important for community banks.29 Amid a long-term trend of banking industry consolidation, the number of community bank
J. Ma, “Wells Fargo Mulls Fewer Branches as Rivals Cut Back,”
Investor’s Business Daily, March 7, 2012.
29
For the definition of “community bank,” see Chapter 1 of the FDIC
Community Banking Study, 2012, https://fdic.gov/regulations/
resources/cbi/report/cbi-full.pdf.
28

FDIC Quarterly

Openings

Change in banking charters and offices calculated from midyear
1994 through midyear 2014.
30

47

2015, Volume 9, No. 1

Chart 17

Chart 18

The Number of Community Bank Offices Has
Remained Stable Since the Mid-1990s, While
Noncommunity Banks Have Added Offices

Community Banks Hold the Majority of Deposits in
Micropolitan and Rural Counties
Community Bank Share of Local Deposits, 1987–2014, by County Type
100%
Rural Counties

Total Offices of FDIC-Insured Institutions, 1987–2014
100,000

80%

Micropolitan Counties

80%

Metropolitan Counties

72%

80,000
60,000

60% 69%

Noncommunity Banks

40% 36%

40,000
20,000

20%

Community Banks

0
1987 1990 1993 1996 1999 2002 2005 2008 2011 2014

13%

0%
1987 1990 1993 1996 1999 2002 2005 2008 2011 2014

Source: FDIC.

Source: FDIC.

Chart 19

the dozens or hundreds of offices operated by many
noncommunity banks.

Community Banks Have Tended to Open More
New Offices and Close Fewer Existing Offices
Than Noncommunity Banks

The 2012 FDIC Community Banking Study observed
that community banks held the majority of local deposits in rural and micro counties through 2011.31 Data
through 2014 indicate that community banks continue
to maintain these majorities, and now hold 72 percent
of deposits in U.S. rural counties and 56 percent of
deposits in micro counties (see Chart 18). While the
majority of community bank deposits continue to be
held in metro counties, the community banks’ share of
total metro area deposits has declined from 36 percent
in 1987 to 13 percent in 2014. It is primarily this loss of
market share in metro areas that has driven down the
community bank share of total industry deposits from
41 percent in 1987 to 16 percent in 2014.

Community Banks

Source of Change:

Net Change
-8.8%

Noncommunity Banks
Net Change
-1.9%
+11.5%

Gross Office Openings

Gross Office Closings

Net Transfer Between Groups

New Offices Added to Survey

Sources: FDIC.

+9.5%
-13.0%
-17.3%
-8.6%
+5.1%
+1.3%
+0.8%

-20 -15 -10
-5
0
5
10
15
Percent Change in Number of Offices, 2008–2014

of banking deposits in 2014. These counties accounted
for nearly 40 percent of all counties and 7.3 percent of
the U.S. population. Noncommunity banks held at
least 75 percent of banking deposits in 738 counties,
accounting for 23 percent of all counties and 64 percent
of the U.S. population.

The 2012 Study also identified 629 counties in which
community banks operated 100 percent of all banking
offices as of 2011.32 This report extends that analysis by
identifying 646 counties where community banks held
100 percent of local deposits as of 2014 (see Map 2).33
Further insight into markets where community banks
predominate is provided in Map 2; shaded regions indicate counties where community banks hold between
75 percent and 99 percent of total deposits. In all, there
were 1,244 counties in the United States and Puerto
Rico where community banks held at least 75 percent

It has already been observed that the total number and
density of banking offices have declined during the
post-crisis period and that total office closings have
exceeded office openings since 2010. However, amid
these trends, community banks proved more reluctant
to close branches and more willing to open new
branches than did noncommunity banks. Chart 19
shows that the number of new offices opened by
community banks between 2008 and 2014 was equal to
11.5 percent of the offices they operated in 2008,

FDIC Community Banking Study, p. 3-6.
Ibid, p. 3-5.
33
“Counties” refers to counties and other geographic areas (parishes,
municipios, districts, and islands, for example) within the 50 states,
the District of Columbia, and Puerto Rico that are treated as county
equivalents by the U.S. Census Bureau.
31
32

FDIC Quarterly

56%

48

2015, Volume 9, No. 1

Brick-and-Mortar Banking
Map 2

compared with 9.5 percent for noncommunity banks.
The chart also shows that the number of offices closed
by community banks during this period was equal to
13 percent of the offices they operated in 2008,
compared with 17.3 percent for noncommunity banks.
This comparison is consistent with the notion that
community banks remain more reliant on physical
banking offices than do noncommunity banks.

therefore their banking offices) that fail or merge are
acquired by other community banks, this percentage
declines with the size of the institution.34 Between 2003
and 2013, some 85 percent of community banks with
assets less than $100 million were acquired by other
community banks, compared with just 10 percent of
community banks with assets between $1 billion and
$10 billion.

Chart 19 also shows that the total number of community bank offices declined by 8.8 percent between 2008
and 2014, compared with a decline of just 1.9 percent
for noncommunity banks. All of this differential in the
growth rate for banking offices between community and
noncommunity banks can be accounted for by the net
transfer of offices between the two groups as a result of
failures, mergers, branch sales, or changes in the size or
structure of the institution. While previous research has
shown that nearly two-thirds of community banks (and

Conclusion

FDIC Quarterly

This paper chronicles the historical evolution of the
banking industry, focusing on the physical banking
offices operated by federally insured banks and thrifts.
The number of U.S. banking offices has generally
grown with population in recent decades, reaching an
all-time peak as recently as 2009. There has also been
considerable cyclicality in the number of offices that
Backup and Brown, “Community Banks Remain Resilient Amid
Industry Consolidation,” pp. 40–41.
34

49

2015, Volume 9, No. 1

References

has coincided with banking crises that occurred in the
late 1980s and again in the late 2000s. Geographic variation in office growth over time appears to be associated
with differences in population growth and with the
varying regional effects of legislative changes that have
relaxed or eliminated restrictions on branch banking
and interstate banking. New technologies introduced
since at least the 1970s have expanded the number of
ways that customers can interact with their bank. Yet
surveys continue to show that visiting a teller continues
to be the most common way for households to access
their accounts. Banking offices remain prevalent. The
total per capita density of banking offices in 2014 was
higher than in any year before 1977, and the density of
banking offices in rural and micropolitan counties has
declined very little over the past 25 years.

America’s Community Bankers. Savings Institution Sourcebook,
1995, Washington, D.C., 1995.
Anderlik, John M. and Richard D. Cofer Jr. “Long-Term
Trends in Rural Depopulation and Their Implications
for Community Banks.” FDIC Quarterly, 8 (2), 2014. http://
fdic.gov/bank/analytical/quarterly/2014_vol8_2/article2.pdf
Backup, Benjamin R. and Richard A. Brown. “Community
Banks Remain Resilient Amid Industry Consolidation,”
FDIC Quarterly, 8 (2), 2014. https://fdic.gov/bank/analytical/
quarterly/2014_vol8_2/article.pdf
Barlow Research Associates Inc. “BOK’s Decision to Ditch
In-Store Branches Shows Banks’ Predicament,”
November 2014.
Breitenstein, Eric C., Karyen Chu, Kathy Kalser, and Eric W.
Robbins. “Minority Depository Institutions: Structure,
Performance, and Social Impact,” FDIC Quarterly, 8, (3),
2014. https://fdic.gov/bank/analytical/quarterly/2014_
vol8_3/mdi_study.pdf

More detailed office data available for the past seven
years show that, although FDIC-insured institutions
have opened and closed thousands of banking offices
since 2008, the number of office closings has consistently outpaced openings of new offices since 2010.
Over the past seven years, community banks have
opened proportionately more offices and closed fewer
offices than noncommunity banks. Still, the total
number of community bank offices declined more than
the number of noncommunity bank offices because of
the conversion of charters to noncommunity status
caused by failures, mergers, and changes in the size and
structure of the institution.

Durkin, Thomas A. “Credit Cards: Use and Consumer
Attitudes, 1970–2000,” Federal Reserve Bulletin, September
2000. http://www.federalreserve.gov/pubs/bulletin/2000/
0900lead.pdf
Ergungor, Ozgur Emre. “Bank Branch Presence and Access to
Credit in Low- to Moderate-Income Neighborhoods,”
Journal of Money, Credit and Banking, Vol. 42, no. 7
(October 2010).
Federal Deposit Insurance Corporation. 2013 FDIC National
Survey of Unbanked and Underbanked Households,
Washington, D.C., October 2014. https://fdic.gov/
householdsurvey/2013report.pdf
Federal Deposit Insurance Corporation. FDIC Community
Banking Study, Washington, D.C., December 2012. https://
www.fdic.gov/regulations/resources/cbi/report/cbi-full.pdf

This analysis shows that physical offices remain a vital
channel through which FDIC-insured institutions
deliver financial services to their customers. New technologies have certainly created convenient new ways
for bank customers to conduct business, yet there is
little evidence that these new channels have done
much to replace traditional brick-and-mortar offices
where banking relationships are built. Convenient,
online services are here to stay, but as long as personal
service and relationships remain important, bankers and
their customers will likely continue to do business
face-to-face.

Federal Deposit Insurance Corporation. Historical Statistics on
Banking, https://www2.fdic.gov/hsob/
Federal Deposit Insurance Corporation. History of the
Eighties—Lessons For The Future, 1, Washington, D.C.,
1997. https://www.fdic.gov/bank/historical/history/vol1.html
Federal Reserve System, “The 2013 Federal Reserve Payments
Study—Summary Report and Initial Data Release,” 2013,
Revised July 2014. http://www.frbservices.org/files/
communications/pdf/general/2013_fed_res_paymt_study_
summary_rpt.pdf
Financial Management Solutions Inc. “2013 FMSI Teller Line
Study,” 2013. N.P. http://www.fmsi.com/fullpanel/uploads/
files/2013-fmsi-teller-line-study-white-paper-00001.pdf

Authors:	Eric C. Breitenstein, Economic Analyst
Division of Insurance and Research

Fox, Susannah. “51% of U.S. Adults Bank Online,” Pew
Research Center, August 7, 2013. http://www.pewinternet.
org/files/old-media//Files/Reports/2013/PIP_OnlineBanking.
pdf

	John M. McGee, Senior Financial Analyst
Division of Insurance and Research

FDIC Quarterly

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2015, Volume 9, No. 1

Brick-and-Mortar Banking
Hayashi, Fumiko, Richard Sullivan, and Stuart E. Weiner.
“A Guide to the ATM and Debit Card Industry,” Federal
Reserve Bank of Kansas City, 2003. http://www.kc.frb.org/
publicat/psr/bksjournarticles/atmpaper.pdf

National ATM Council, Inc. “U.S. ATM Industry,” N.P.,
N.D., http://natmc.org/documents/2012/10/about-the-atmindustry.pdf
Rehm, B.A. “Colorado Ready to Finally Allow Branch
Banking.” American Banker (May 10, 1991).

Kahn, Chris. “March 2014 Financial Security Survey,”
BankRate.com (2014), N.P., http://www.bankrate.com/
finance/consumer-index/financial-security-charts-0314.aspx

Retail Banking Strategies. “US Bank Excels in In-Store
Banking,” February 2010.

Ma, Jason. “Wells Fargo Mulls Fewer Branches as Rivals Cut
Back,” Investor’s Business Daily, March 7, 2012.

Strahan, Philip E. and Jith Jayaratne. “The Benefits of
Branching Deregulation,” Economic Policy Review, 3 (4),
1997. http://www.newyorkfed.org/research/epr/97v03n4/
9712jaya.pdf

McLaughlin, Susan. “The Impact of Interstate Banking and
Branching Reform: Evidence from the States,” Current Issues
in Economics and Finance, 1 (2), 1995. http://www.
newyorkfed.org/research/current_issues/ci1-2.pdf

United States Savings and Loan League. Savings and Loan Fact
Book, 1971, Chicago, IL, 1971, and Savings and Loan Fact
Book, 1976, Chicago, IL, 1976.

Mengle, David L. “The Case for Interstate Branch Banking,”
Economic Review, November/December 1990. https://www.
richmondfed.org/publications/research/economic_
review/1990/pdf/er760601.pdf

FDIC Quarterly

Williams, Christopher A. “Banks Go Shopping for
Customers,” The Regional Economist, October 1997, N.P.
https://www.stlouisfed.org/publications/re/articles/?id=1789

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2015, Volume 9, No. 1