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Quarterly
Quarterly Banking Profile:
Fourth Quarter 2015
Highlights:
■

Fourth Quarter Net Income of $40.8 Billion Is
11.9 Percent Higher Than a Year Ago

■

Full-Year Earnings of $163.7 Billion Are 7.5 Percent
Above 2014 Results

■

Community Bank Earnings Rise 4 Percent to
$5.1 Billion From Fourth Quarter 2014

■

Net Operating Revenue Increases for Community
Banks, Outpacing Growth at Noncommunity Banks

■

DIF Reserve Ratio Rises 2 Basis Points to 1.11 Percent

2016
Volume 10, Number 1
Federal Deposit
Insurance Corporation
FDIC QUARTERLY A

The FDIC Quarterly is published by the Division of Insurance and Research of the
Federal Deposit Insurance Corporation and contains a comprehensive summary of the
most current financial results for the banking industry. Feature articles appearing in the
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
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Chairman
Martin J. Gruenberg
Director, Division of Insurance and Research
Diane Ellis
Executive Editor
Richard A. Brown
Managing Editors
Matthew Green
Jack Reidhill
Philip A. Shively
Editors
Clayton Boyce
Peggi Gill
Frank Solomon
Kathy Zeidler
Publication Manager
Lynne Montgomery
Media Inquiries
(202) 898-6993

FDIC QUARTERLY

2016

FDIC QUARTERLY

Vo l u m e 1 0 • N u m b e r 1

Quarterly Banking Profile: Fourth Quarter 2015
FDIC-insured institutions reported aggregate net income of $40.8 billion in the fourth
quarter of 2015, up $4.4 billion (11.9 percent) from earnings of $36.5 billion a year
earlier. The increase in earnings was mainly attributable to a $6.8 billion increase in net
operating revenue and a $2.7 billion decline in noninterest expenses. The reduction in
noninterest expenses is attributed to a drop in litigation expenses at a few large banks. Of
the 6,182 insured institutions reporting fourth quarter financial results, more than half
(56.6 percent) reported year-over-year growth in quarterly earnings. The proportion of
banks that were unprofitable in the fourth quarter fell from 9.9 percent a year earlier to
9.1 percent, the lowest level for a fourth quarter since 1996. See page 1.
Community Bank Performance

Community banks—which represent 93 percent of insured institutions—reported net
income of $5.1 billion in the fourth quarter, up $198.7 million (4 percent) from the yearearlier quarter. Earnings improved on higher net interest income and noninterest income,
but were offset in part by higher loan-loss provisions and noninterest expense. Asset quality
indicators continued to improve, and community banks accounted for 44 percent of small
loans to businesses. See page 15.

Insurance Fund Indicators

Insured deposits increased by 1.8 percent in the fourth quarter of 2015. The DIF reserve
ratio rose to 1.11 percent on December 31, 2015, up from 1.09 percent at September 30,
2015, and 1.01 percent at December 31, 2014. Two FDIC-insured institutions failed during
the quarter. See page 23.

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

FDIC QUARTERLY

i

QUARTERLY BANKING PROFILE Fourth Quarter 2015
Insured Institution Performance
Fourth Quarter Net Income of $40.8 Billion Is 11.9 Percent Higher Than a Year Ago
Lower Litigation Expenses Boost Year-Over-Year Earnings Growth
Quarterly Loan Losses Post First Year-Over-Year Increase in 22 Quarters
Full-Year Earnings of $163.7 Billion Are 7.5 Percent Above 2014 Results
Total Loan and Lease Balances Rose 6.4 Percent in 2015
Number of Banks on ‘Problem List’ Falls Below 200
Earnings and Profitability
Register Year-Over-Year
Improvement

Declines in expenses for litigation at a few large banks combined with moderate revenue
growth to lift fourth-quarter net income at FDIC-insured institutions to $40.8 billion, an
increase of $4.4 billion (11.9 percent) compared with fourth quarter 2014. The improving
trend in earnings was widespread. More than half of all banks, or 56.6 percent, reported
year-over-year increases in quarterly net income. Meanwhile, the percentage of banks
reporting negative quarterly net income fell to 9.1 percent, from 9.9 percent in the year-ago
year. The average return on assets (ROA) rose to 1.03 percent from 0.95 percent in fourth
quarter 2014.

Margins Improve at
Large Banks

Net operating revenue—the sum of net interest income and total noninterest income—
totaled $174.3 billion in the fourth quarter, up $6.8 billion (4.1 percent) from a year earlier.
More than two-thirds of all banks, or 68 percent, reported year-over-year growth in
revenues. Noninterest income was $3 billion (5 percent) higher, as servicing income rose by
$2.1 billion (178 percent), and gains on asset sales were $984 million (32 percent) higher. Net
interest income increased by $3.9 billion (3.6 percent) compared with fourth quarter 2014.
The average net interest margin (NIM) was 3.13 percent, slightly higher than the 3.12 percent
average the year before. This is the first time in five years that the average quarterly NIM has
not been lower than the year earlier. Most of the margin improvement occurred at larger
banks, whose asset portfolios were better-positioned to benefit from the increase in shortterm interest rates late in the quarter. Only 45 percent of all banks reported year-over-year
NIM improvement.

Chart 1

Chart 2
Unprofitable Institutions and
Institutions With Increased Earnings

Quarterly Net Income

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

$ Billions

50
40

35.2

30
20

17.4

10

-20

28.7 28.5
21.4

40.3
34.4

38.2

36.1

39.8

37.3

40.1

38.5

36.5

39.8

Percentage of All FDIC-Insured Institutions
40.4 40.8

40
30
20

-6.1

10

-12.6

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

Source: FDIC.

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

70

50

-1.7

2009

80

60

25.3

2.1

0
-10

20.9

23.8

34.8 34.5

37.5

43.0

All FDIC-Insured Institutions

2010

2011

2012

2013

2014

2015

0
2006

Percentage of Institutions With Quarterly Losses

2007

Source: FDIC.

2008

2009

2010

2011

2012

2013

2014

2015

FDIC QUARTERLY

1

2016 •Volume 10 • Numb er 1

Litigation Expenses Fall
80 Percent

Total noninterest expenses were $2.7 billion (2.5 percent) lower than in the year-ago quarter.
Itemized litigation expenses at a few of the largest banks totaled $616 million, a decline of
$2.4 billion (80 percent) from fourth quarter 2014. Salary and employee benefit expenses
were $1.2 billion (2.5 percent) higher, while expenses for premises and other fixed assets rose
$313 million (2.7 percent).

Loss Provisions Rise to
Three-Year High

Provisions for loan and lease losses increased year over year for a sixth consecutive quarter,
rising by $3.8 billion (45.5 percent). The $12 billion in provisions that banks set aside in the
fourth quarter is the largest quarterly total in three years. About 37 percent of banks
reported higher quarterly provisions, while a similar proportion reported reductions in their
loss provisions.

Full-Year Revenues Post
Modest Growth

Full-year earnings totaled $163.7 billion, an increase of $11.4 billion (7.5 percent) over the
total for 2014. The average ROA in 2015 was 1.04 percent, up from 1.01 percent in 2014.
Almost two out of every three banks, or 63.6 percent, reported higher net income in 2015.
Only 4.6 percent of banks reported negative net income for the year, down from 6.3 percent
in 2014. Net operating revenue increased $14.9 billion (2.2 percent) in 2015, as net interest
income rose by $9.4 billion (2.2 percent) and noninterest income increased by $5.5 billion
(2.2 percent). Total noninterest expenses were $5.5 billion (1.3 percent) lower than in 2014,
as a few large banks reported $6.6 billion (67.6 percent) less in itemized litigation expenses
in 2015. Full-year loan-loss provisions registered an increase for the first time in six years,
rising by $7.2 billion (24.1 percent). Full-year net charge-offs were $2.4 billion (6.1 percent)
lower than in 2014.

Charge-Offs Rise in C&I,
Consumer Portfolios

Net charge-offs totaled $10.6 billion in the fourth quarter, an increase of $690 million
(7 percent) from a year earlier. This is the first year-over-year increase in quarterly chargeoffs in 22 quarters. Net charge-offs of loans to commercial and industrial (C&I) borrowers
rose by $512 million (43.4 percent), as lower oil prices adversely affected some energy sector
borrowers. Credit card charge-offs were $292 million (5.6 percent) higher, an increase largely
in line with the growth in total credit card balances. Net charge-offs of auto loans increased
by $105 million (15.9 percent). All other major loan categories had lower charge-offs than a
year ago. The average net charge-off rate in the fourth quarter was 0.49 percent, almost
unchanged from the 0.48 percent average in fourth quarter 2014.

Chart 3

Chart 4

Quarterly Net Operating Revenue

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

All FDIC-Insured Institutions

All FDIC-Insured Institutions
Quarterly Noninterest Income
Quarterly Net Interest Income

$ Billions

$ Billions

10

200

5

180

3.8

0

160
140

-5

120

-10

100

-15

80

-20

60

-25

40

-30

20

-35 -30.7

0

1

2007

Source: FDIC.

2008

2009

2010

2 FDIC QUARTERLY

2011

2012

2013

2014

2015

2

3

2011

Source: FDIC.

4

1

2

3

2012

4

1

2

3

2013

4

1

2

3

2014

4

1

2

3

2015

4

QUARTERLY BANKING PROFILE

Provisions Exceed
Charge-Offs for First Time
in Six Years

Banks barely reduced their reserves for loan losses during the fourth quarter, as quarterly
loan-loss provisions exceeded quarterly net charge-offs for the first time in six years.
Loan-loss reserves declined by $586,000 (0.0005 percent) during the three months ended
December 31. The average “coverage ratio” of reserves to noncurrent loans improved for a
13th consecutive quarter as a result of the decline in noncurrent loan balances. The coverage
ratio improved from 85.2 percent to 86 percent during the quarter. This is the highest level
for the ratio since mid-year 2008. Banks with assets greater than $1 billion break out their
loan-loss reserves for major loan categories. These institutions, which account for almost
90 percent of total industry reserves, increased their reserves for non-real estate commercial
loan losses by $2.3 billion (7.9 percent) during the quarter, and increased their reserves for
credit card losses by $460 million (1.7 percent). They reduced their reserves for all other loan
and lease losses by $2.3 billion (4.7 percent).

Lower Securities Values
Limit Growth in Equity

Equity capital registered a modest $4.4 million (0.2 percent) increase in the fourth quarter.
Retained earnings contributed $13.5 billion to equity growth, matching the contribution of a
year earlier, as banks increased their fourth-quarter dividends by $4.4 billion (19 percent).
Accumulated other comprehensive income, which is included in equity capital, declined by
$13.5 billion during the quarter, as higher interest rates caused a decline in unrealized
securities gains. At the end of 2015, 98.9 percent of all insured institutions, representing
99.8 percent of total industry assets, met or exceeded the requirements for the highest
regulatory capital category as defined for Prompt Corrective Action purposes.

Pace of Loan Growth
Accelerates

Total assets increased by $167.8 billion (1.1 percent) during the quarter. Total loans and leases
rose by $197.3 billion (2.3 percent), as credit card balances had a largely seasonal $41.7 billion
(5.8 percent) increase, C&I loans increased by $39.6 billion (2.2 percent), and nonfarm
nonresidential real estate loans rose by $31.6 billion (2.6 percent). In addition, loans to
nondepository financial institutions increased $17.1 billion (6.5 percent), and multifamily
residential real estate loans rose by $15 billion (4.6 percent). Loans to small businesses and
farms increased $7.1 billion (1.1 percent). Investment securities holdings grew by $49.6 billion
(1.5 percent). Banks reduced their balances with Federal Reserve banks by $42 billion
(3.4 percent), with most of the decline occurring at a few of the largest banks. Assets in
trading accounts fell by $22.1 billion (3.8 percent).

Chart 5

Chart 6
Noncurrent Loan Rate and Quarterly Net Charge-Off Rate

Annual Net Income

All FDIC-Insured Institutions

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

$ Billions

180
160
140

120.6 122.2

120

104.7

100
80

81.5

133.8

145.2

141.0

154.3 152.3

163.7

118.4

87.4

85.5

-20

Noncurrent Loan Rate

5
4
3
2

40
0

6

99.9

60
20

Percentage

1

4.5
-10.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: FDIC.

Quarterly Net Charge-Off Rate

0
2006

2007

Source: FDIC.

2008

2009

2010

2011

2012

2013

2014

2015

FDIC QUARTERLY

3

2016 •Volume 10 • Numb er 1

Deposits Continue to Fund
Asset Growth

Total deposits increased by $199.4 billion (1.7 percent) during the fourth quarter, as deposits
in domestic offices rose by $255.9 billion (2.4 percent), and foreign office deposits declined
by $56.5 billion (4.2 percent). Interest-bearing domestic deposits were up $215.1 billion
(2.8 percent), while noninterest-bearing deposits rose by $40.7 billion (1.4 percent). Banks
reduced their nondeposit liabilities by $35.9 billion (1.8 percent) during the quarter.

‘Problem List’ Falls Below
200 Institutions

The number of FDIC-insured commercial banks and savings institutions reporting
quarterly financial results declined from 6,270 to 6,182 in the fourth quarter. Mergers
absorbed 81 institutions in the three months ended December 31, while two insured
institutions failed. No new charters were added in the fourth quarter. Banks reported
2,033,758 full-time equivalent employees in the quarter, down from 2,038,490 in the third
quarter and 2,047,945 a year ago. The number of insured institutions on the FDIC’s
“Problem List” declined from 203 to 183 during the quarter, and total assets of problem
institutions fell from $51.1 billion to $46.8 billion. For all of 2015, there were 305 mergers of
insured institutions, one new charter was added, and eight banks failed.
Author:
Ross Waldrop
Senior Banking Analyst
Division of Insurance and Research
(202) 898-3951

Chart 7

Chart 8
Number and Assets of Banks on the “Problem List”

Quarterly Change in Loan Balances
All FDIC-Insured Institutions

Assets ($ Billions)

$ Billions

300
250
237
221*
200 196
189 203
185 197
178
149
150 146
134
118
108
102
95
100
91
74 70
67
66
65
61
50
43
38 51 53
28
24
0
-6
-7 -14
-50
-37
-63
-100
-107
-150
-116 -109
-126
-133
-140
-200
-210
-250

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

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.

4 FDIC QUARTERLY

Number

1,000

500

Number of Problem Banks

450

900

400

800

350

700

300

600

250

500

200

400
300

150
100

Problem Bank Assets

183 200
47 100

50
0
2006 2007

Source: FDIC.

0
2008 2009 2010

2011 2012

2013 2014 2015

QUARTERLY BANKING PROFILE
TABLE I-A. Selected Indicators, All FDIC-Insured Institutions*
Return on assets (%)
Return on equity (%)
Core capital (leverage) ratio (%)
Noncurrent assets plus other real estate owned to assets (%)
Net charge-offs to loans (%)
Asset growth rate (%)
Net interest margin (%)
Net operating income growth (%)
Number of institutions reporting
Commercial banks
Savings institutions
Percentage of unprofitable institutions (%)
Number of problem institutions
Assets of problem institutions (in billions)
Number of failed institutions
Number of assisted institutions

2015

2014

2013

2012

2011

2010

2009

1.04
9.31
9.59
0.96
0.44
2.66
3.07
7.26
6,182
5,338
844
4.61
183
$47
8
0

1.01
9.01
9.44
1.20
0.49
5.59
3.14
-0.72
6,509
5,607
902
6.27
291
$87
18
0

1.07
9.54
9.40
1.63
0.69
1.94
3.26
12.82
6,812
5,847
965
8.16
467
$153
24
0

1.00
8.90
9.15
2.20
1.10
4.02
3.42
17.76
7,083
6,072
1,011
11.00
651
$233
51
0

0.88
7.79
9.07
2.61
1.55
4.30
3.60
43.60
7,357
6,275
1,082
16.23
813
$319
92
0

0.65
5.85
8.89
3.11
2.55
1.77
3.76
1,594.34
7,658
6,519
1,139
22.15
884
$390
157
0

-0.08
-0.73
8.60
3.37
2.52
-5.45
3.49
-155.98
8,012
6,829
1,183
30.84
702
$403
140
8

* Excludes insured branches of foreign banks (IBAs).

TABLE II-A. Aggregate Condition and Income Data, All FDIC-Insured Institutions
(dollar figures in millions)
Number of institutions reporting
Total employees (full-time equivalent)
CONDITION DATA
Total assets
Loans secured by real estate
		 1-4 Family residential mortgages
		Nonfarm nonresidential
		 Construction and development
		 Home equity lines
Commercial & industrial loans
Loans to individuals
		Credit cards
Farm loans
Other loans & leases
Less: Unearned income
Total loans & leases
Less: Reserve for losses
Net loans and leases
Securities
Other real estate owned
Goodwill and other intangibles
All other assets
Total liabilities and capital
Deposits
		 Domestic office deposits
		 Foreign office deposits
Other borrowed funds
Subordinated debt
All other liabilities
Total equity capital (includes minority interests)
		 Bank equity capital
Loans and leases 30-89 days past due
Noncurrent loans and leases
Restructured loans and leases
Mortgage-backed securities
Earning assets
FHLB Advances
Unused loan commitments
Trust assets
Assets securitized and sold
Notional amount of derivatives

4th Quarter
2015

3rd Quarter
2015

4th Quarter
2014

%Change
14Q4-15Q4

6,182
2,033,758

6,270
2,038,490

6,509
2,047,945

-5.0
-0.7

$15,967,923
4,375,085
1,904,478
1,231,207
274,924
465,108
1,841,654
1,497,960
756,465
81,485
1,045,463
2,079
8,839,568
118,555
8,721,013
3,353,552
14,703
360,503
3,518,151

$15,800,124
4,306,629
1,887,018
1,199,604
266,093
471,540
1,802,086
1,453,720
714,790
79,161
1,002,646
1,942
8,642,299
118,556
8,523,743
3,303,909
16,116
356,954
3,599,401

$15,553,756
4,170,731
1,842,122
1,150,164
238,385
492,324
1,714,800
1,418,259
718,469
78,006
929,695
1,993
8,309,498
122,623
8,186,876
3,218,960
21,980
360,175
3,765,765

2.7
4.9
3.4
7.0
15.3
-5.5
7.4
5.6
5.3
4.5
12.5
4.3
6.4
-3.3
6.5
4.2
-33.1
0.1
-6.6

15,967,923
12,189,838
10,904,965
1,284,872
1,385,683
91,597
499,426
1,801,379
1,794,800

15,800,124
11,990,430
10,649,097
1,341,332
1,382,905
92,163
537,540
1,797,086
1,790,366

15,553,756
11,764,005
10,368,059
1,395,946
1,387,789
98,083
562,941
1,740,935
1,733,559

2.7
3.6
5.2
-8.0
-0.2
-6.6
-11.3
3.5
3.5

INCOME DATA

Full Year
2015

64,315
137,833
72,167
1,871,656
14,365,703
495,001
6,915,503
17,303,920
821,619
182,006,726
Full Year
2014

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

$478,539
46,469
432,069
36,972
253,387
417,296
3,636
70,652
-10
164,162
163,675
37,128
104,520
59,155
161,602

$469,781
47,128
422,653
29,798
247,855
422,787
3,202
68,177
-55
152,893
152,263
39,557
90,196
62,067
150,668

61,160
139,164
74,146
1,818,692
14,169,619
455,475
6,803,001
16,865,323
846,620
194,569,167
4th Quarter
%Change
2015
1.9
-1.4
2.2
24.1
2.2
-1.3
13.5
3.6
81.5
7.4
7.5
-6.1
15.9
-4.7
7.3

$123,730
12,398
111,333
12,039
62,994
105,782
852
16,394
-36
40,926
40,848
10,607
27,315
13,532
40,338

69,976
162,649
84,032
1,728,605
13,882,581
464,279
6,478,315
18,336,059
972,452
221,964,337
4th Quarter
2014

-8.1
-15.3
-14.1
8.3
3.5
6.6
6.7
-5.6
-15.5
-18.0
%Change
14Q4-15Q4

$119,032
11,551
107,481
8,275
60,003
108,500
862
14,937
9
36,644
36,496
9,917
22,960
13,535
36,003

4.0
7.3
3.6
45.5
5.0
-2.5
-1.2
9.8
N/M
11.7
11.9
7.0
19.0
0.0
12.0
N/M - Not Meaningful

FDIC QUARTERLY

5

2016 •Volume 10 • Numb er 1
TABLE III-A. Full Year 2015, All FDIC-Insured Institutions
Asset Concentration Groups*
FULL YEAR
(The way it is...)
Number of institutions reporting
Commercial banks
Savings institutions
Total assets (in billions)
Commercial banks
Savings institutions
Total deposits (in billions)
Commercial banks
Savings institutions
Bank net income (in millions)
Commercial banks
Savings institutions
Performance Ratios (%)
Yield on earning assets
Cost of funding earning assets
Net interest margin
Noninterest income to assets
Noninterest expense to assets
Loan and lease loss provision to assets
Net operating income to assets
Pretax return on assets
Return on assets
Return on equity
Net charge-offs to loans and leases
Loan and lease loss provision to
net charge-offs
Efficiency ratio
% of unprofitable institutions
% of institutions with earnings gains
Condition Ratios (%)
Earning assets to total assets
Loss allowance to:
Loans and leases
Noncurrent loans and leases
Noncurrent assets plus
other real estate owned to assets
Equity capital ratio
Core capital (leverage) ratio
Common equity tier 1 capital ratio
Tier 1 risk-based capital ratio
Total risk-based capital ratio
Net loans and leases to deposits
Net loans to total assets
Domestic deposits to total assets
Structural Changes
New reporters
Institutions absorbed by mergers
Failed institutions

All Insured
Institutions
6,182
5,338
844
$15,967.9
14,893.4
1,074.5
12,189.8
11,349.4
840.5
163,675
152,133
11,543

Credit
Card
Banks
14
12
2
$549.1
433.4
115.7
321.8
235.6
86.2
14,490
10,535
3,955

International
Banks
4
4
0
$3,774.6
3,774.6
0.0
2,697.2
2,697.2
0.0
33,961
33,961
0

Agricultural
Banks
1,479
1,461
18
$277.6
272.4
5.2
230.4
227.2
3.2
2,628
2,523
105

Commercial
Lenders
3,091
2,780
311
$5,893.0
5,496.5
396.5
4,582.5
4,293.3
289.1
53,774
50,900
2,874

Mortgage
Lenders
501
120
381
$385.7
144.5
241.3
305.8
120.4
185.4
3,116
1,694
1,422

Consumer
Lenders
65
49
16
$187.3
94.9
92.4
157.5
79.9
77.6
1,881
1,144
737

Other
Specialized
<$1 Billion
332
298
34
$57.5
51.3
6.1
46.0
41.8
4.2
1,523
684
839

All Other
<$1 Billion
629
556
73
$112.8
97.6
15.2
94.8
82.4
12.4
1,012
922
90

All Other
>$1 Billion
67
58
9
$4,730.3
4,528.2
202.1
3,753.8
3,571.5
182.3
51,290
49,770
1,520

3.40
0.33
3.07
1.62
2.66
0.24
1.03
1.49
1.04
9.31
0.44

10.50
0.93
9.57
4.47
6.44
2.46
2.84
4.42
2.84
19.11
2.79

2.58
0.30
2.28
1.81
2.43
0.17
0.86
1.21
0.87
8.93
0.59

4.10
0.45
3.64
0.66
2.77
0.11
0.95
1.18
0.97
8.44
0.10

3.57
0.39
3.19
1.26
2.70
0.14
0.94
1.32
0.95
8.02
0.19

3.24
0.50
2.74
0.86
2.24
0.02
0.80
1.22
0.83
7.22
0.13

4.07
0.44
3.63
1.36
2.71
0.51
1.04
1.65
1.04
10.30
0.62

3.03
0.34
2.69
6.92
5.60
0.03
2.64
3.79
2.68
17.85
0.20

3.87
0.42
3.45
0.99
3.05
0.07
0.88
1.10
0.91
7.63
0.20

3.00
0.18
2.81
1.65
2.38
0.18
1.09
1.65
1.12
9.90
0.41

99.58
59.91
4.61
63.60

113.69
47.61
0.00
57.14

83.18
63.33
0.00
100.00

178.05
62.29
2.03
62.75

110.35
64.33
4.79
68.42

22.98
64.80
8.78
54.09

112.79
54.78
6.15
66.15

60.32
59.45
7.83
47.29

68.48
72.55
4.93
57.55

88.88
55.67
2.99
65.67

89.97

92.50

87.49

92.81

90.51

94.66

97.20

91.71

92.49

90.06

1.34
86.01

3.20
274.03

1.59
87.52

1.38
172.13

1.17
104.03

0.96
36.46

1.14
89.69

1.68
114.86

1.38
95.15

1.20
55.14

0.96
11.24
9.59
12.67
12.76
14.21
71.54
54.62
68.29

0.90
14.29
12.30
11.87
11.98
14.20
127.74
74.87
57.73

0.70
10.13
8.82
13.11
13.14
14.48
50.27
35.92
46.52

0.68
11.32
10.66
14.33
14.34
15.44
78.65
65.27
82.99

0.93
11.77
10.06
12.17
12.35
13.84
86.27
67.08
76.75

1.92
11.36
11.28
21.83
21.88
22.72
78.85
62.52
79.27

0.97
10.12
10.28
13.67
13.88
14.68
85.76
72.10
84.06

0.61
15.02
14.35
32.11
32.12
33.04
33.83
27.09
80.1

1.19
11.78
11.53
19.77
19.81
20.94
64.93
54.60
84.08

1.16
11.08
8.98
12.20
12.21
13.67
63.04
50.03
73.45

1
305
8

0
0
0

0
1
0

0
48
0

0
219
7

0
12
0

0
2
0

1
1
0

0
15
1

0
7
0

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

2014
2012
2010

6,509
7,083
7,658

15
19
22

3
5
4

1,515
1,537
1,559

3,222
3,499
4,085

553
659
718

52
51
72

374
414
314

708
826
815

67
73
69

Total assets (in billions)
	
	

2014
2012
2010

$15,553.8
14,450.4
13,318.9

$484.2
600.7
705.4

$3,735.6
3,808.4
3,038.1

$273.5
239.8
199.8

$4,878.5
4,338.9
4,094.5

$439.6
628.3
789.0

$175.9
101.6
114.3

$61.9
64.9
42.9

$129.1
145.8
132.3

$5,375.5
4,522.0
4,202.6

Return on assets (%)
	
	

2014
2012
2010

1.01
1.00
0.65

3.22
3.13
1.82

0.72
0.80
0.72

1.17
1.27
0.98

0.94
0.89
0.20

0.96
0.87
0.68

1.05
1.46
1.28

2.20
1.23
1.48

0.86
0.86
0.70

1.06
1.00
0.80

Net charge-offs to loans & leases (%)
	
	

2014
2012
2010

0.49
1.10
2.55

2.81
3.69
10.83

0.73
1.41
2.29

0.13
0.24
0.59

0.24
0.74
1.90

0.21
0.82
1.14

0.62
1.31
2.37

0.34
0.45
0.64

0.25
0.45
0.56

0.41
0.94
1.87

Noncurrent assets plus
OREO to assets (%)
	
	

2014
2012
2010

1.20
2.20
3.11

0.88
1.11
1.90

0.85
1.39
2.38

0.83
1.11
1.62

1.17
2.21
3.71

2.19
2.70
2.88

1.19
0.88
1.22

0.73
1.04
0.81

1.39
1.67
1.67

1.43
3.06
3.49

Equity capital ratio (%)
	
	

2014
2012
2010

11.15
11.17
11.15

15.13
14.67
14.96

9.45
8.93
8.93

11.42
11.14
10.86

11.97
11.93
11.40

12.07
11.09
10.05

9.88
9.57
11.00

14.78
14.27
16.31

11.81
11.47
11.01

11.11
11.85
12.04

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

6 FDIC QUARTERLY

QUARTERLY BANKING PROFILE
TABLE III-A. Full Year 2015, All FDIC-Insured Institutions
Asset Size Distribution
FULL YEAR
(The way it is...)
Number of institutions reporting
Commercial banks
Savings institutions
Total assets (in billions)
Commercial banks
Savings institutions
Total deposits (in billions)
Commercial banks
Savings institutions
Bank net income (in millions)
Commercial banks
Savings institutions
Performance Ratios (%)
Yield on earning assets
Cost of funding earning assets
Net interest margin
Noninterest income to assets
Noninterest expense to assets
Loan and lease loss provision to assets
Net operating income to assets
Pretax return on assets
Return on assets
Return on equity
Net charge-offs to loans and leases
Loan and lease loss provision to
net charge-offs
Efficiency ratio
% of unprofitable institutions
% of institutions with earnings gains
Condition Ratios (%)
Earning assets to total assets
Loss allowance to:
Loans and leases
Noncurrent loans and leases
Noncurrent assets plus
other real estate owned to assets
Equity capital ratio
Core capital (leverage) ratio
Common equity tier 1 capital ratio
Tier 1 risk-based capital ratio
Total risk-based capital ratio
Net loans and leases to deposits
Net loans to total assets
Domestic deposits to total assets
Structural Changes
New reporters
Institutions absorbed by mergers
Failed institutions

All Insured
Institutions
6,182
5,338
844
$15,967.9
14,893.4
1,074.5
12,189.8
11,349.4
840.5
163,675
152,133
11,543

Less Than
$100
Million
1,688
1,483
205
$99.2
87.6
11.6
83.4
74.3
9.1
831
749
83

3.40
0.33
3.07
1.62
2.66
0.24
1.03
1.49
1.04
9.31
0.44

4.08
0.44
3.64
1.14
3.44
0.11
0.82
0.97
0.84
6.76
0.19

4.13
0.46
3.67
1.19
3.18
0.11
1.05
1.34
1.07
9.49
0.15

4.00
0.40
3.60
1.21
2.87
0.18
1.09
1.50
1.11
9.37
0.20

99.58
59.91
4.61
63.60

100.50
76.24
9.48
56.46

106.06
68.89
3.06
65.06

89.97

91.72

1.34
86.01

Geographic Regions*

$100 $1 Billion
Greater
Million to
to
Than
$1 Billion $10 Billion $10 Billion
3,792
595
107
3,279
485
91
513
110
16
$1,199.9
$1,682.6 $12,986.3
1,014.8
1,391.1
12,400.0
185.1
291.5
586.2
997.4
1,331.0
9,778.0
851.0
1,111.3
9,312.7
146.4
219.7
465.3
12,481
17,715
132,647
10,569
15,288
125,527
1,912
2,427
7,120

New York
762
394
368
$3,074.2
2,655.0
419.2
2,305.4
1,994.0
311.4
25,923
23,599
2,324

Atlanta
762
689
73
$3,372.6
3,293.4
79.2
2,635.1
2,571.8
63.3
33,897
33,506
392

Chicago
1,337
1,117
220
$3,503.7
3,392.0
111.7
2,559.6
2,479.4
80.3
34,194
32,735
1,459

Kansas
City
1,543
1,482
61
$3,444.0
3,389.1
54.9
2,609.1
2,565.1
44.1
39,619
39,217
402

Dallas
1,307
1,226
81
$943.2
832.0
111.2
779.0
687.8
91.2
10,008
8,718
1,290

San
Francisco
471
430
41
$1,630.2
1,332.0
298.3
1,301.5
1,051.4
250.2
20,034
14,358
5,677

3.25
0.31
2.94
1.71
2.58
0.26
1.02
1.51
1.04
9.30
0.51

3.41
0.42
2.99
1.44
2.61
0.28
0.86
1.22
0.87
7.38
0.48

3.57
0.28
3.29
1.53
2.71
0.28
1.00
1.49
1.03
8.33
0.49

2.65
0.26
2.40
1.87
2.60
0.10
0.96
1.33
0.96
9.47
0.27

3.61
0.35
3.26
1.46
2.48
0.24
1.14
1.68
1.16
11.31
0.52

3.94
0.31
3.63
1.38
3.10
0.19
1.09
1.43
1.10
9.94
0.22

3.98
0.41
3.57
2.04
2.93
0.39
1.31
2.06
1.31
10.65
0.52

134.66
62.62
1.01
74.96

97.07
58.56
2.80
61.68

110.13
62.70
6.30
61.42

96.43
60.14
8.40
64.17

76.65
64.37
5.01
64.92

88.19
55.36
2.46
64.74

135.11
65.36
3.14
59.98

122.40
53.01
5.73
68.79

92.75

92.16

89.41

89.67

89.09

89.10

89.79

91.91

93.45

1.46
108.40

1.34
121.88

1.20
114.61

1.36
80.14

1.26
101.32

1.37
78.25

1.37
80.35

1.42
69.46

1.27
100.20

1.28
168.60

0.96
11.24
9.59
12.67
12.76
14.21
71.54
54.62
68.29

1.25
12.56
12.30
19.81
19.85
20.93
68.66
57.73
84.08

1.11
11.25
10.93
15.38
15.44
16.56
78.79
65.49
83.12

0.92
11.70
10.48
13.52
13.57
14.59
86.33
68.29
78.83

0.95
11.17
9.33
12.27
12.37
13.91
68.82
51.82
65.44

0.75
11.78
9.77
12.63
12.81
14.32
71.67
53.75
66.69

1.15
12.22
9.61
12.38
12.48
13.99
74.39
58.13
75.45

0.94
10.50
9.19
12.72
12.77
13.86
67.28
49.15
63.8

1.18
10.22
9.01
11.85
11.85
13.78
69.05
52.31
58.29

1.03
11.06
9.97
13.13
13.25
14.39
76.65
63.30
82.46

0.53
12.04
11.11
14.78
14.94
16.05
75.88
60.58
79.11

1
305
8

1
101
5

0
172
2

0
26
1

0
6
0

1
39
1

0
32
3

0
62
2

0
58
0

0
74
1

0
40
1

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

2014
2012
2010

6,509
7,083
7,658

1,871
2,204
2,625

3,957
4,217
4,367

574
555
559

107
107
107

807
873
949

812
904
1,022

1,406
1,515
1,602

1,599
1,716
1,825

1,372
1,490
1,601

513
585
659

Total assets (in billions)
	
	

2014
2012
2010

$15,553.8
14,450.4
13,318.9

$109.7
128.1
148.6

$1,232.1
1,275.0
1,291.7

$1,576.4
1,454.7
1,429.6

$12,635.5
11,592.6
10,449.0

$2,956.4
2,896.1
2,694.8

$3,217.9
3,056.1
2,929.7

$3,595.8
3,298.1
2,950.1

$3,404.0
3,068.7
1,686.6

$904.4
870.4
789.0

$1,475.2
1,261.0
2,268.8

Return on assets (%)
	
	

2014
2012
2010

1.01
1.00
0.65

0.79
0.68
0.27

1.00
0.80
0.26

1.09
1.13
0.18

1.00
1.01
0.76

0.83
0.96
0.76

1.00
0.77
0.34

0.88
0.90
0.60

1.07
1.10
0.84

1.14
1.01
0.68

1.49
1.72
0.81

Net charge-offs to loans & leases (%)
	
	

2014
2012
2010

0.49
1.10
2.55

0.23
0.43
0.80

0.23
0.64
1.12

0.27
0.73
1.80

0.56
1.22
2.93

0.55
1.24
3.57

0.54
1.19
2.43

0.36
0.85
2.03

0.60
1.37
2.88

0.23
0.56
1.27

0.47
0.84
2.29

Noncurrent assets plus
OREO to assets (%)
	
	

2014
2012
2010

1.20
2.20
3.11

1.45
2.10
2.39

1.38
2.37
3.44

1.41
2.46
3.57

1.15
2.15
3.01

0.89
1.46
2.14

1.55
3.23
3.93

1.11
2.00
2.98

1.46
2.45
4.24

1.18
2.05
3.17

0.65
1.38
2.51

Equity capital ratio (%)
	
	

2014
2012
2010

11.15
11.17
11.15

12.28
12.00
11.70

11.20
10.90
10.15

11.90
11.77
11.18

11.04
11.11
11.26

11.81
12.18
12.58

12.45
12.03
11.59

9.80
9.10
8.71

10.20
10.86
11.33

11.06
10.70
10.54

12.47
13.24
12.11

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

FDIC QUARTERLY

7

2016 •Volume 10 • Numb er 1
TABLE IV-A. Fourth Quarter 2015, All FDIC-Insured Institutions
Asset Concentration Groups*
FOURTH QUARTER
(The way it is...)
Number of institutions reporting
Commercial banks
Savings institutions
Total assets (in billions)
Commercial banks
Savings institutions
Total deposits (in billions)
Commercial banks
Savings institutions
Bank net income (in millions)
Commercial banks
Savings institutions
Performance Ratios (annualized, %)
Yield on earning assets
Cost of funding earning assets
Net interest margin
Noninterest income to assets
Noninterest expense to assets
Loan and lease loss provision to assets
Net operating income to assets
Pretax return on assets
Return on assets
Return on equity
Net charge-offs to loans and leases
Loan and lease loss provision to
net charge-offs
Efficiency ratio
% of unprofitable institutions
% of institutions with earnings gains
Structural Changes
New reporters
Institutions absorbed by mergers
Failed institutions

All Insured
Institutions

Credit
Card
Banks

International
Banks

Agricultural
Banks

Commercial
Lenders

Mortgage
Lenders

Consumer
Lenders

Other
Specialized
<$1 Billion

All Other
<$1 Billion

All Other
>$1 Billion

6,182
5,338
844
$15,967.9
14,893.4
1,074.5
12,189.8
11,349.4
840.5
40,848
38,142
2,706

14
12
2
$549.1
433.4
115.7
321.8
235.6
86.2
3,557
2,423
1,134

4
4
0
$3,774.6
3,774.6
0.0
2,697.2
2,697.2
0.0
7,829
7,829
0

1,479
1,461
18
$277.6
272.4
5.2
230.4
227.2
3.2
774
749
25

3,091
2,780
311
$5,893.0
5,496.5
396.5
4,582.5
4,293.3
289.1
13,226
12,939
287

501
120
381
$385.7
144.5
241.3
305.8
120.4
185.4
845
441
405

65
49
16
$187.3
94.9
92.4
157.5
79.9
77.6
384
297
87

332
298
34
$57.5
51.3
6.1
46.0
41.8
4.2
486
182
305

629
556
73
$112.8
97.6
15.2
94.8
82.4
12.4
606
584
22

67
58
9
$4,730.3
4,528.2
202.1
3,753.8
3,571.5
182.3
13,140
12,698
441

3.48
0.35
3.13
1.59
2.67
0.30
1.02
1.44
1.03
9.13
0.49

10.70
0.96
9.74
4.47
6.60
2.75
2.66
4.12
2.66
18.30
3.01

2.72
0.32
2.40
1.74
2.44
0.27
0.82
1.13
0.82
8.18
0.68

4.16
0.46
3.70
0.67
2.66
0.13
1.11
1.34
1.13
9.87
0.16

3.61
0.43
3.17
1.26
2.71
0.19
0.90
1.23
0.91
7.68
0.22

3.28
0.47
2.81
0.94
2.28
0.03
0.87
1.31
0.89
7.79
0.10

4.12
0.44
3.69
1.42
2.97
0.66
0.83
1.34
0.83
8.16
0.70

3.01
0.34
2.67
8.47
6.00
0.03
3.37
4.94
3.41
22.47
0.32

3.86
0.41
3.45
0.96
2.18
0.06
2.15
1.94
2.17
18.13
0.22

3.00
0.17
2.83
1.59
2.34
0.22
1.09
1.63
1.12
10.03
0.44

113.50
59.85
9.09
56.55

118.28
48.33
0.00
57.14

109.18
62.98
0.00
100.00

122.69
64.12
7.64
55.85

129.43
64.88
7.57
59.53

55.92
62.93
14.97
49.90

129.05
57.69
12.31
55.38

38.54
54.77
15.36
49.70

49.16
52.14
12.40
52.15

99.03
55.51
4.48
58.21

0
81
2

0
0
0

0
0
0

0
17
0

0
53
2

0
6
0

0
0
0

0
0
0

0
1
0

0
4
0

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

2014
2012
2010

0.95
0.96
0.64

3.08
3.08
2.78

0.46
0.70
0.60

1.09
1.13
0.84

0.98
0.88
0.08

0.91
0.85
0.60

0.93
1.16
1.46

2.48
1.02
1.20

0.79
0.79
0.62

1.05
0.99
0.84

Net charge-offs to loans & leases (%)
	
	

2014
2012
2010

0.48
0.97
2.30

2.74
3.36
7.68

0.73
1.04
2.25

0.20
0.35
0.74

0.25
0.72
2.02

0.12
0.60
1.06

0.64
1.50
2.33

0.50
0.65
0.75

0.32
0.47
0.75

0.38
0.85
1.60

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

8 FDIC QUARTERLY

QUARTERLY BANKING PROFILE
TABLE IV-A. Fourth Quarter 2015, All FDIC-Insured Institutions
Asset Size Distribution
FOURTH QUARTER
(The way it is...)
Number of institutions reporting
Commercial banks
Savings institutions
Total assets (in billions)
Commercial banks
Savings institutions
Total deposits (in billions)
Commercial banks
Savings institutions
Bank net income (in millions)
Commercial banks
Savings institutions
Performance Ratios (annualized, %)
Yield on earning assets
Cost of funding earning assets
Net interest margin
Noninterest income to assets
Noninterest expense to assets
Loan and lease loss provision to assets
Net operating income to assets
Pretax return on assets
Return on assets
Return on equity
Net charge-offs to loans and leases
Loan and lease loss provision to
net charge-offs
Efficiency ratio
% of unprofitable institutions
% of institutions with earnings gains
Structural Changes
New reporters
Institutions absorbed by mergers
Failed institutions

All Insured
Institutions

Less Than
$100
Million

6,182
5,338
844
$15,967.9
14,893.4
1,074.5
12,189.8
11,349.4
840.5
40,848
38,142
2,706

1,688
1,483
205
$99.2
87.6
11.6
83.4
74.3
9.1
192
161
31

3,792
3,279
513
$1,199.9
1,014.8
185.1
997.4
851.0
146.4
3,596
3,035
560

595
485
110
$1,682.6
1,391.1
291.5
1,331.0
1,111.3
219.7
4,339
3,791
548

3.48
0.35
3.13
1.59
2.67
0.30
1.02
1.44
1.03
9.13
0.49

4.14
0.43
3.71
1.22
3.62
0.17
0.76
0.86
0.78
6.15
0.29

4.15
0.46
3.70
1.24
3.15
0.13
1.19
1.41
1.21
10.70
0.21

113.50
59.85
9.09
56.55

98.64
78.10
18.31
51.66

0
81
2

Geographic Regions*

$100 $1 Billion
Greater
Million to
to
Than
$1 Billion $10 Billion $10 Billion

New York

Atlanta

Chicago

Kansas
City

Dallas

San
Francisco

107
91
16
$12,986.3
12,400.0
586.2
9,778.0
9,312.7
465.3
32,721
31,154
1,567

762
394
368
$3,074.2
2,655.0
419.2
2,305.4
1,994.0
311.4
5,837
5,676
161

762
689
73
$3,372.6
3,293.4
79.2
2,635.1
2,571.8
63.3
8,538
8,365
173

1,337
1,117
220
$3,503.7
3,392.0
111.7
2,559.6
2,479.4
80.3
8,947
8,589
359

1,543
1,482
61
$3,444.0
3,389.1
54.9
2,609.1
2,565.1
44.1
9,375
9,268
107

1,307
1,226
81
$943.2
832.0
111.2
779.0
687.8
91.2
2,367
2,143
224

471
430
41
$1,630.2
1,332.0
298.3
1,301.5
1,051.4
250.2
5,784
4,101
1,683

4.04
0.40
3.64
1.19
2.89
0.25
1.04
1.42
1.05
8.89
0.26

3.33
0.33
3.00
1.67
2.59
0.33
1.00
1.46
1.01
9.05
0.56

3.48
0.51
2.96
1.39
2.66
0.35
0.77
1.03
0.77
6.49
0.53

3.62
0.28
3.35
1.47
2.69
0.35
0.99
1.46
1.02
8.28
0.54

2.79
0.27
2.52
1.90
2.63
0.12
1.01
1.41
1.02
9.77
0.27

3.63
0.35
3.28
1.39
2.49
0.32
1.07
1.55
1.09
10.63
0.59

3.97
0.31
3.66
1.35
3.15
0.28
1.01
1.28
1.02
9.13
0.28

4.01
0.38
3.63
2.09
2.84
0.51
1.44
2.15
1.45
11.92
0.62

89.47
67.26
6.30
56.91

137.68
62.73
1.85
67.90

112.72
58.59
2.80
57.94

121.53
64.83
10.76
56.69

108.25
59.47
14.17
57.74

90.63
62.91
8.75
56.77

103.39
56.26
7.52
55.15

158.85
66.45
7.73
56.01

134.17
51.25
8.07
59.87

0
23
1

0
46
1

0
9
0

0
3
0

0
17
0

0
7
1

0
13
0

0
16
0

0
14
0

0
14
1

PRIOR FOURTH QUARTERS
(The way it was…)
Return on assets (%)
	
	

2014
2012
2010

0.95
0.96
0.64

0.67
0.51
-0.15

1.01
0.70
-0.09

1.08
1.00
-0.07

0.93
0.99
0.84

0.79
0.92
0.87

1.01
0.82
0.26

0.84
0.88
0.51

0.86
1.01
0.98

1.11
0.91
0.51

1.46
1.55
0.82

Net charge-offs to loans & leases (%)
	
	

2014
2012
2010

0.48
0.97
2.30

0.29
0.54
1.09

0.32
0.74
1.43

0.25
0.72
2.03

0.54
1.04
2.50

0.51
1.09
2.97

0.50
1.17
2.18

0.38
0.65
1.97

0.61
1.17
2.53

0.28
0.61
1.44

0.44
0.71
2.13

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

FDIC QUARTERLY

9

2016 •Volume 10 • Numb er 1
TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Concentration Groups*
December 31, 2015

All Insured
Institutions

Credit
Card International
Banks
Banks

Agricultural
Banks

Commercial
Lenders

Mortgage
Lenders

Consumer
Lenders

Other
Specialized
<$1 Billion

All Other
<$1 Billion

All Other
>$1 Billion

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

0.84
0.41
0.30
0.13
0.67
1.47
0.25
1.34
1.17
1.51
0.24
0.73

0.18
0.00
0.00
0.00
0.00
0.19
0.82
1.26
1.25
1.29
0.42
1.22

1.19
1.43
0.25
0.12
1.05
1.72
0.21
1.31
1.13
1.62
0.33
0.81

0.66
0.73
0.51
0.13
0.43
1.24
0.87
1.50
1.16
1.52
0.46
0.67

0.56
0.35
0.28
0.13
0.50
1.07
0.24
1.18
1.14
1.19
0.24
0.51

0.84
0.55
0.27
0.22
0.69
0.94
0.52
0.95
2.67
0.85
0.19
0.80

0.68
0.55
1.16
2.26
0.47
0.67
0.07
0.81
0.73
0.84
0.17
0.72

1.38
1.00
0.81
0.21
0.52
2.05
1.42
2.17
2.30
2.15
0.85
1.44

1.29
1.08
0.89
0.79
0.61
1.66
0.96
2.17
1.23
2.19
0.44
1.28

1.32
0.37
0.27
0.09
0.75
2.12
0.22
1.65
1.06
2.01
0.15
0.94

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

2.48
1.12
0.86
0.28
2.67
4.22
0.78
0.85
1.15
0.54
0.21
1.56

0.55
0.00
0.00
0.00
0.00
0.59
0.69
1.21
1.24
0.59
0.11
1.17

3.79
0.70
0.71
0.18
4.42
5.51
0.77
1.02
1.08
0.91
0.18
1.81

0.90
1.12
1.12
0.69
0.63
1.02
1.14
0.56
0.31
0.58
0.44
0.80

1.43
1.13
0.81
0.29
1.37
2.54
0.80
0.71
1.07
0.65
0.25
1.12

2.89
1.35
1.46
0.49
2.02
3.23
0.82
0.42
1.38
0.36
0.12
2.64

3.36
7.46
7.77
1.25
2.54
3.07
0.22
0.57
1.16
0.40
3.07
1.27

1.66
2.51
1.74
0.91
0.82
1.58
1.27
0.88
1.14
0.84
0.41
1.46

1.64
1.85
1.87
0.92
0.58
1.70
1.30
0.77
0.38
0.79
0.41
1.45

4.36
0.99
0.86
0.23
3.83
6.65
0.72
0.59
1.01
0.34
0.13
2.18

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

0.13
-0.05
0.07
0.00
0.39
0.15
0.26
1.80
2.92
0.69
0.12
0.44

0.19
0.00
0.00
0.00
0.00
0.20
2.03
2.87
2.94
1.41
0.04
2.79

0.24
-0.03
0.00
0.00
0.43
0.29
0.26
2.29
3.09
0.97
0.11
0.59

0.03
-0.18
0.05
0.04
0.09
0.08
0.28
0.40
1.12
0.35
0.12
0.10

0.09
-0.06
0.08
0.00
0.25
0.12
0.22
0.87
3.33
0.52
0.17
0.19

0.10
0.03
0.03
0.02
0.25
0.10
0.22
1.04
5.73
0.52
0.10
0.13

0.23
0.36
0.59
0.77
0.52
0.10
0.06
0.82
2.22
0.42
0.02
0.62

0.08
-0.08
0.06
0.19
0.11
0.10
0.31
0.61
1.50
0.45
0.69
0.20

0.13
0.13
0.16
0.10
0.08
0.13
0.30
0.54
0.93
0.53
0.44
0.20

0.17
-0.03
0.04
-0.02
0.57
0.13
0.22
1.52
2.70
0.81
0.08
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)

$4,375.1
274.9
1,231.2
344.1
465.1
1,904.5
1,841.7
1,498.0
756.5
741.5
1,126.9
8,841.6

$0.2
0.0
0.0
0.0
0.0
0.2
34.7
389.6
372.8
16.7
0.3
424.7

$517.4
9.0
37.3
62.4
67.8
289.8
284.9
250.7
158.3
92.4
325.4
1,378.3

$110.3
6.4
30.0
3.5
2.4
27.8
21.7
6.6
0.5
6.1
45.2
183.8

$2,396.6
207.7
896.5
231.3
219.3
803.2
965.6
318.8
41.5
277.3
320.0
4,001.1

$219.3
5.0
18.2
6.4
10.9
178.1
6.6
6.2
0.4
5.8
11.5
243.5

$29.7
0.4
2.1
0.3
5.7
21.0
7.3
93.7
20.6
73.1
6.0
136.7

$11.4
0.8
3.9
0.3
0.4
5.4
1.9
1.6
0.2
1.4
0.9
15.8

$47.6
2.9
11.4
1.3
2.0
26.4
5.4
5.2
0.1
5.1
4.3
62.5

$1,042.6
42.8
231.7
38.6
156.6
552.6
513.7
425.6
162.0
263.6
413.4
2,395.2

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

14,703.4
4,544.9
3,511.3
244.9
4,664.3
226.2
1,488.8

0.1
0.0
0.0
0.0
0.1
0.0
0.0

801.3
2.3
54.0
2.0
379.0
0.0
343.0

398.2
150.4
124.3
15.1
78.4
30.0
0.0

9,573.5
3,670.8
2,695.3
203.1
2,682.5
172.7
148.9

909.6
104.3
44.0
6.4
218.9
1.4
534.6

89.2
9.0
20.1
0.9
54.3
0.0
4.9

116.2
49.3
34.1
1.9
25.9
4.7
0.2

433.8
156.9
126.0
7.4
134.8
8.5
0.1

2,381.6
402.0
413.5
7.9
1,090.3
8.8
457.0

* 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.

10 FDIC QUARTERLY

QUARTERLY BANKING PROFILE
TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Size Distribution
December 31, 2015

Less Than
All Insured
$100
Institutions
Million

Geographic Regions*

$100 $1 Billion
Greater
Million to
to
Than
$1 Billion $10 Billion $10 Billion

New York

Atlanta

Chicago

Kansas
City

Dallas

San
Francisco

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

0.84
0.41
0.30
0.13
0.67
1.47
0.25
1.34
1.17
1.51
0.24
0.73

1.25
0.81
0.95
0.37
0.65
1.81
1.14
1.94
3.99
1.91
0.48
1.18

0.68
0.49
0.44
0.30
0.49
1.12
0.58
1.64
1.89
1.62
0.40
0.69

0.44
0.31
0.26
0.14
0.45
0.78
0.35
1.34
1.50
1.28
0.30
0.48

0.99
0.42
0.25
0.10
0.71
1.66
0.22
1.33
1.16
1.52
0.23
0.77

0.61
0.50
0.39
0.15
0.47
1.00
0.25
1.08
0.94
1.33
0.19
0.59

1.05
0.38
0.27
0.09
0.80
1.82
0.20
1.81
1.32
2.35
0.15
0.88

0.89
0.49
0.32
0.16
0.77
1.41
0.29
1.22
0.95
1.31
0.51
0.74

1.12
0.36
0.24
0.06
0.71
1.91
0.25
1.31
1.19
1.47
0.12
0.81

0.80
0.37
0.35
0.20
0.51
1.68
0.36
1.08
0.72
1.26
0.35
0.70

0.35
0.34
0.17
0.08
0.32
0.60
0.25
1.13
1.46
0.82
0.18
0.49

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

2.48
1.12
0.86
0.28
2.67
4.22
0.78
0.85
1.15
0.54
0.21
1.56

1.45
1.55
1.74
0.47
0.65
1.60
1.91
0.84
1.64
0.83
0.54
1.34

1.16
1.72
1.10
0.72
0.66
1.31
1.17
0.78
1.48
0.73
0.40
1.10

1.08
1.18
0.83
0.29
0.77
1.65
1.14
0.65
1.33
0.43
0.93
1.05

3.18
0.84
0.77
0.21
3.05
5.21
0.70
0.86
1.14
0.55
0.15
1.70

1.71
1.32
1.01
0.24
2.58
2.63
0.69
0.89
0.99
0.71
0.42
1.24

3.09
1.76
0.81
0.23
3.17
5.02
0.68
0.92
1.23
0.57
0.12
1.75

2.84
0.93
0.98
0.33
2.61
4.56
0.63
0.76
0.97
0.69
0.15
1.70

3.66
0.73
0.85
0.29
3.00
6.25
0.89
0.83
1.13
0.44
0.17
2.04

1.49
0.84
0.79
0.65
1.51
2.81
1.22
0.73
1.16
0.52
0.24
1.27

0.76
0.89
0.61
0.19
0.74
0.99
0.89
0.81
1.37
0.28
0.28
0.76

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

0.13
-0.05
0.07
0.00
0.39
0.15
0.26
1.80
2.92
0.69
0.12
0.44

0.11
0.04
0.17
0.17
0.10
0.11
0.48
0.62
7.86
0.52
0.00
0.19

0.09
0.08
0.08
0.04
0.11
0.12
0.32
0.76
4.35
0.48
0.18
0.15

0.09
-0.03
0.13
0.01
0.15
0.08
0.25
1.32
3.26
0.70
0.14
0.20

0.15
-0.11
0.04
-0.01
0.44
0.17
0.26
1.86
2.91
0.70
0.12
0.51

0.11
0.03
0.11
0.00
0.25
0.12
0.20
1.94
2.61
0.77
0.21
0.48

0.18
0.08
0.05
0.01
0.56
0.18
0.22
1.86
2.90
0.75
0.06
0.49

0.11
-0.10
0.04
0.01
0.34
0.13
0.22
1.10
2.82
0.53
0.14
0.27

0.17
-0.22
0.00
-0.03
0.49
0.23
0.30
2.25
3.20
1.02
0.08
0.52

0.05
-0.03
0.03
0.03
0.24
0.07
0.30
1.22
2.14
0.77
0.16
0.22

0.08
-0.16
0.19
-0.02
0.04
0.03
0.41
1.71
3.30
0.32
0.14
0.52

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)

$4,375.1
274.9
1,231.2
344.1
465.1
1,904.5
1,841.7
1,498.0
756.5
741.5
1,126.9
8,841.6

$39.7
2.4
10.2
1.1
1.0
18.1
6.9
3.7
0.1
3.6
7.9
58.1

$611.7
54.8
233.6
32.6
26.4
218.7
101.9
32.4
2.1
30.4
50.9
796.9

$838.5
77.3
338.3
80.6
49.4
272.4
185.0
79.2
19.6
59.6
60.9
1,163.6

$2,885.2
140.5
649.1
229.8
388.3
1,395.3
1,547.8
1,382.7
734.7
647.9
1,007.3
6,823.0

$892.5
49.6
281.3
124.2
88.4
344.6
282.9
318.5
204.2
114.3
179.9
1,673.8

$905.6
56.8
259.4
42.4
121.6
412.4
462.6
373.9
196.2
177.7
245.8
1,987.8

$887.1
44.5
188.9
89.2
116.3
425.5
384.7
213.7
54.8
158.9
260.7
1,746.2

$844.5
42.3
176.2
31.0
91.0
414.4
366.4
303.1
170.9
132.1
314.0
1,828.0

$376.0
54.2
150.0
14.6
19.3
122.8
123.4
59.9
19.7
40.2
45.7
605.0

$469.5
27.5
175.4
42.6
28.4
184.7
221.6
228.9
110.7
118.3
80.9
1,000.9

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

14,703.4
4,544.9
3,511.3
244.9
4,664.3
226.2
1,488.8

457.0
158.6
146.9
20.9
120.3
10.0
0.3

4,530.6
2,099.1
1,397.0
108.4
825.1
99.8
1.2

3,236.1
1,335.6
972.4
66.3
777.7
66.8
17.4

6,479.6
951.6
995.0
49.2
2,941.2
49.6
1,469.9

2,194.0
418.7
569.9
76.5
1,068.8
19.9
40.1

3,881.9
1,306.5
749.5
35.5
1,166.0
42.1
582.4

2,990.8
662.5
759.0
49.0
1,063.1
64.0
393.2

2,673.2
926.2
570.1
37.2
649.0
21.4
446.3

2,000.3
880.0
599.1
29.2
417.5
62.0
12.6

963.1
351.0
263.6
17.5
299.9
16.8
14.3

* 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

2016 •Volume 10 • Numb er 1
Table VI-A. Derivatives, All FDIC-Insured Call Report Filers
Asset Size Distribution
(dollar figures in millions;
notional amounts unless otherwise indicated)
ALL DERIVATIVE HOLDERS
Number of institutions reporting derivatives
Total assets of institutions reporting derivatives
Total deposits of institutions reporting derivatives
Total derivatives

4th
Quarter
2015

3rd
Quarter
2015

1,412
$14,421,666
10,937,463
182,006,726

1,417
$14,229,626
10,734,003
194,569,167

1,430
1,433
1,400
$14,196,821 $14,161,278 $13,921,803
10,705,267 10,664,869 10,461,458
201,012,315 205,908,260 221,964,337

0.9
3.6
4.6
-18.0

72
$5,356
4,451
390

Derivative Contracts by Underlying Risk Exposure
Interest rate
Foreign exchange*
Equity
Commodity & other (excluding credit derivatives)
Credit
Total

138,401,691
33,133,160
2,377,623
1,107,759
6,986,493
182,006,726

147,846,270 153,754,328 157,727,980 174,010,311
34,636,874 34,969,999
35,563,105 34,745,833
2,495,086
2,363,902
2,359,532
2,536,871
1,393,268
1,436,368
1,241,100
1,222,255
8,197,668
8,487,718
9,016,543
9,449,068
194,569,167 201,012,315 205,908,260 221,964,337

-20.5
-4.6
-6.3
-9.4
-26.1
-18.0

390
0
0
0
0
390

19,811
0
3
8
8
19,829

94,376
6,150
329
62
596
101,513

138,287,113
33,127,010
2,377,291
1,107,689
6,985,890
181,884,993

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

107,392,568 112,697,599 117,508,993
35,684,933
38,988,133 40,359,824
15,479,866
16,414,299
15,936,785
15,429,332
15,808,764
15,628,831
173,986,699 183,908,794 189,434,433

-20.5
-17.7
-5.5
-3.7
-17.5

51
93
15
231
390

7,588
6,244
731
5,258
19,822

65,742
17,326
5,524
12,255
100,846

107,319,187
35,661,270
15,473,596
15,411,588
173,865,640

Fair Value of Derivative Contracts
Interest rate contracts
Foreign exchange contracts
Equity contracts
Commodity & other (excluding credit derivatives)
Credit derivatives as guarantor
Credit derivatives as beneficiary
Derivative Contracts by Maturity**
Interest rate contracts 
< 1 year
		 
1-5 years
		 
> 5 years
Foreign exchange and gold contracts  < 1 year
		 
1-5 years
		 
> 5 years
Equity contracts 
< 1 year
		 
1-5 years
		 
> 5 years
	Commodity & other contracts (including credit
derivatives, excluding gold contracts)  < 1 year
		 
1-5 years
		 
> 5 years
Risk-Based Capital: Credit Equivalent Amount
Total current exposure to tier 1 capital (%)
Total potential future exposure to tier 1 capital (%)
Total exposure (credit equivalent amount)
to tier 1 capital (%)
Credit losses on derivatives***
HELD FOR TRADING
Number of institutions reporting derivatives
Total assets of institutions reporting derivatives
Total deposits of institutions reporting derivatives
Derivative Contracts by Underlying Risk Exposure
Interest rate
Foreign exchange
Equity
Commodity & other
Total
Trading Revenues: Cash & Derivative Instruments
Interest rate
Foreign exchange
Equity
Commodity & other (including credit derivatives)
Total trading revenues

2nd
Quarter
2015

1st
Quarter
2015

4th % Change Less Than
$100
Quarter
14Q4$100 Million to
2014
15Q4
Million $1 Billion

117,711,339 135,169,550
44,545,061 43,379,813
16,070,702 16,388,881
15,784,250 16,014,343
194,111,351 210,952,587

$1 Billion
to $10
Billion

Greater
Than
$10 Billion

828
412
$353,066 $1,286,071
291,323 1,022,400
19,829
101,513

100
$12,777,173
9,619,289
181,884,993

67,225
-12,485
5,318
-3,571
-2,697
7,076

76,691
-15,284
7,880
-6,952
1,891
2,441

71,659
-19,614
2,695
-3,488
35,840
-34,672

68,541
-10,042
335
-5,755
54,676
-53,203

60,023
-4,845
3,769
-3,376
47,533
-36,630

12.0
N/M
41.1
N/M
N/M
N/M

1
0
0
0
0
0

34
0
0
0
-1
0

-128
19
0
1
-2
-25

67,319
-12,504
5,318
-3,571
-2,694
7,101

55,066,011
49,407,094
32,980,155
24,129,434
3,986,440
1,647,799
1,734,984
627,574
130,188

62,274,115
55,134,193
36,553,737
25,206,272
3,672,989
1,500,445
1,604,394
670,068
183,539

63,464,834
54,758,916
35,837,389
25,081,829
3,859,497
1,612,940
1,567,482
579,705
162,800

71,679,267
54,898,649
35,099,036
25,513,647
3,917,108
1,612,457
1,595,472
555,013
169,232

71,808,688
33,727,025
22,213,590
22,145,398
2,586,643
969,047
996,137
351,854
100,903

-23.3
46.5
48.5
9.0
54.1
70.0
74.2
78.4
29.0

61
23
38
0
0
0
0
0
0

6,030
2,802
4,901
0
0
0
1
0
0

16,211
27,010
34,279
4,126
290
0
40
82
34

55,043,709
49,377,259
32,940,938
24,125,308
3,986,151
1,647,799
1,734,944
627,491
130,155

2,651,133
4,694,153
405,131

2,567,847
5,812,508
756,438

2,358,927
5,329,031
428,122

2,192,083
5,718,321
598,660

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

104.1
29.6
40.2

0
0
0

9
5
0

47
61
114

2,651,078
4,694,087
405,017

30.1
48.3

34.3
50.3

31.6
54.9

39.8
50.3

28.8
48.6

0.2
0.1

0.3
0.3

0.6
0.6

34.2
55.1

78.4

84.6

86.4

90.0

77.4

0.3

0.6

1.2

89.3

78.0

72.0

61.0

69.0

91.0

-14.3

0.0

0.0

0.0

78.0

247
11,455,841
8,656,201

247
11,384,421
8,553,870

249
11,367,405
8,547,594

249
11,440,608
8,584,534

247
11,274,446
8,457,075

0.0
1.6
2.4

9
604
491

89
39,591
32,769

87
301,791
236,928

62
11,113,855
8,386,013

136,068,160 145,317,808 150,988,370 154,706,677
31,665,951
31,764,784
31,318,657
32,197,481
2,352,971
2,472,541
2,344,517
2,340,858
1,105,989
1,390,888
1,433,959
1,234,659
171,193,072 180,946,021 186,085,503 190,479,675

170,761,929
32,536,107
2,519,511
1,216,652
207,034,199

-20.3
-2.7
-6.6
-9.1
-17.3

51
0
0
0
51

1,681
0
0
0
1,682

23,441
4,852
0
21
28,314

136,042,987
31,661,099
2,352,971
1,105,968
171,163,025

-76.4
17.2
15.2
N/M
-4.2

0
0
0
0
0

0
0
0
0
0

17
6
1
-1
23

137
3,395
740
-25
4,248

0.0
0.0

0.0
0.3

0.7
3.0

3.6
16.1

155
3,401
741
-25
4,271

2,581
1,931
50
758
5,319

3,404
854
584
660
5,502

957
4,702
791
1,211
7,662

658
2,902
643
255
4,458

3.5
15.7

4.4
19.9

4.5
19.0

6.4
29.4

3.8
19.6

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

1,299
14,205,743
10,765,169

1,304
13,958,937
10,517,185

1,310
13,894,497
10,463,786

1,308
13,845,428
10,412,082

1,277
13,613,653
10,218,508

1.7
4.3
5.3

64
4,840
4,037

759
324,368
267,309

379
1,197,743
952,161

97
12,678,792
9,541,661

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

2,333,530
433,675
24,652
1,770
2,793,627

2,528,462
409,385
22,545
2,381
2,962,773

2,765,957
561,179
19,385
2,409
3,348,931

3,021,304
585,259
18,674
6,441
3,631,677

3,248,382
647,043
17,361
5,602
3,918,388

-28.2
-33.0
42.0
-68.4
-28.7

339
0
0
0
339

18,129
0
3
8
18,140

70,936
1,226
329
42
72,533

2,244,126
432,449
24,319
1,720
2,702,615

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

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.

12 FDIC QUARTERLY

QUARTERLY BANKING PROFILE
TABLE VII-A. Servicing, Securitization, and Asset Sales Activities (All FDIC-Insured Call Report Filers)
Asset Size Distribution

(dollar figures in millions)
Assets Securitized and Sold with Servicing Retained or with
Recourse or Other Seller-Provided Credit Enhancements
Number of institutions reporting securitization activities
Outstanding Principal Balance by Asset Type
1-4 family residential loans
Home equity loans
Credit card receivables
Auto loans
Other consumer loans
Commercial and industrial loans
All other loans, leases, and other assets
Total securitized and sold
Maximum Credit Exposure by Asset Type
1-4 family residential loans
Home equity loans
Credit card receivables
Auto loans
Other consumer loans
Commercial and industrial loans
All other loans, leases, and other assets
Total credit exposure
Total unused liquidity commitments provided to institution’s own securitizations
Securitized Loans, Leases, and Other Assets 30-89 Days Past Due (%)
1-4 family residential loans
Home equity loans
Credit card receivables
Auto loans
Other consumer loans
Commercial and industrial loans
All other loans, leases, and other assets
Total loans, leases, and other assets
Securitized Loans, Leases, and Other Assets 90 Days or More Past Due (%)
1-4 family residential loans
Home equity loans
Credit card receivables
Auto loans
Other consumer loans
Commercial and industrial loans
All other loans, leases, and other assets
Total loans, leases, and other assets
Securitized Loans, Leases, and Other Assets Charged-off
(net, YTD, annualized, %)
1-4 family residential loans
Home equity loans
Credit card receivables
Auto loans
Other consumer loans
Commercial and industrial loans
All other loans, leases, and other assets
Total loans, leases, and other assets
Seller's Interests in Institution's Own Securitizations – Carried as Loans
Home equity loans
Credit card receivables
Commercial and industrial loans
Seller's Interests in Institution's Own Securitizations – Carried as Securities
Home equity loans
Credit card receivables
Commercial and industrial loans

4th
Quarter
2015

3rd
Quarter
2015

2nd
Quarter
2015

1st
Quarter
2015

74

73

72

71

4th % Change Less Than
Quarter
14Q4$100
2014
15Q4
Million

$100 $1 Billion
Million to
to $10
$1 Billion
Billion

Greater
Than $10
Billion

78

-5.1

0

20

16

38

$715,914 $734,519 $749,911 $818,351 $847,508
30
31
33
35
36
13,502
14,187
17,766
17,817
18,499
6,095
6,221
5,660
3,740
3,951
6,219
5,370
6,534
5,966
6,191
15
14
14
13
11
79,844
86,277
89,384
94,400
96,257
821,619 846,620 869,302 940,322 972,452

-15.5
-16.7
-27.0
54.3
0.5
36.4
-17.1
-15.5

$0
0
0
0
0
0
0
0

$2,032
0
0
0
935
8
99
3,073

$12,832
0
0
2,165
0
7
8,316
23,320

$701,050
30
13,502
3,930
5,284
1
71,429
795,226

-2.7
0.0
-27.5
0.0
-54.1
0.0
-27.7
-16.4
111.8

0
0
0
0
0
0
0
0
0

4
0
0
0
0
0
0
4
0

0
0
0
0
0
0
0
0
0

2,835
0
1,108
0
89
0
990
5,022
36

2,840
0
1,108
0
89
0
990
5,026
36

2,933
0
1,187
0
89
0
1,319
5,528
37

3,101
0
1,470
0
187
0
1,084
5,842
38

3,117
0
1,531
0
211
0
1,405
6,264
0

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

3.9
5.4
0.4
1.5
3.3
0.0
0.5
3.5

3.8
5.9
0.4
1.1
3.8
0.0
0.3
3.3

3.4
5.3
0.4
0.9
4.0
1.2
0.3
3.0

3.1
5.2
0.4
0.9
4.6
0.0
0.4
2.8

3.9
7.5
0.7
0.9
4.9
0.0
0.3
3.5

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

1.8
0.0
0.0
0.0
0.0
0.0
1.1
1.2

1.6
0.0
0.0
1.8
0.0
0.0
0.1
1.1

3.9
5.4
0.4
1.3
3.9
0.0
0.6
3.6

2.0
47.8
0.3
0.2
3.4
1.0
1.2
1.9

2.1
47.4
0.3
0.2
3.9
1.2
1.2
2.0

2.1
46.5
0.3
0.1
4.3
1.8
1.4
2.0

2.0
44.7
0.3
0.1
5.1
1.8
1.4
2.0

2.2
43.3
0.5
0.1
5.3
2.4
3.3
2.3

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

1.5
0.0
0.0
0.0
0.0
2.1
8.7
1.3

0.6
0.0
0.0
0.4
0.0
0.0
0.5
0.5

2.1
47.8
0.3
0.1
3.9
0.0
1.2
2.0

0.4
5.2
1.8
0.4
0.7
0.0
0.6
0.4

0.3
3.2
1.4
0.2
0.5
0.0
0.5
0.3

0.2
1.8
0.8
0.1
0.3
0.0
0.3
0.2

0.1
0.7
0.4
0.1
0.2
0.0
0.1
0.1

0.4
1.0
1.7
0.2
0.8
0.0
0.9
0.4

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.1

0.0
0.0
0.0
0.7
0.0
0.0
0.0
0.1

0.4
5.2
1.8
0.3
0.8
0.0
0.6
0.4

0
15,059
0

0
13,248
0

0
10,380
0

0
9,983
0

0
12,247
0

0.0
23.0
0.0

0
0
0

0
0
0

0
0
0

0
15,059
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0.0
0.0
0.0

0
0
0

0
0
0

0
0
0

0
0
0

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

1,084

1,099

1,107

1,097

1,103

-1.7

123

726

184

51

38,492
716
215
73,491
112,915

39,013
721
217
72,204
112,155

38,992
750
80
74,994
114,816

38,856
694
83
71,382
111,015

40,547
712
91
69,560
110,909

-5.1
0.6
136.3
5.7
1.8

1,511
0
0
0
1,511

15,239
7
15
126
15,387

9,792
55
69
1,179
11,095

11,951
653
130
72,187
84,921

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

9,936
167
152
20,130
30,385

10,495
140
154
19,659
30,448

10,436
144
16
19,656
30,252

10,061
137
19
18,624
28,841

9,737
137
27
17,954
27,855

2.0
21.9
463.0
12.1
9.1

113
0
0
0
113

2,682
7
15
13
2,718

3,410
31
6
69
3,516

3,731
129
130
20,047
24,038

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

111
41,500
834

110
42,211
884

110
44,649
2,005

117
44,981
887

125
44,248
1,150

-11.2
-6.2
-27.5

8
8
0

60
148
9

24
336
0

19
41,008
825

0 4,360,879

Other
Assets serviced for others*
Asset-backed commercial paper conduits
Credit exposure to conduits sponsored by institutions and others
Unused liquidity commitments to conduits sponsored by institutions
	  and others
Net servicing income (for the quarter)
Net securitization income (for the quarter)
Total credit exposure to Tier 1 capital (%)**

0

0

0

-100.0

0

0

0

0

13,980

12,020

12,284

11,736

11,981

16.7

4

1

0

13,975

29,257
3,328
250
5.2

27,631
1,040
348
5.3

27,902
4,546
325
5.5

28,878
1,600
298
5.5

28,924
1,197
340
5.5

1.2
178.0
-26.5

0
7
0
1.0

0
275
6
2.2

7
178
2
2.3

29,251
2,868
242
6.0

* 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

2016 •Volume 10 • Numb er 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

14 FDIC QUARTERLY

Asset Size Distribution

Dec 31
2015

Dec 31
2014

Dec 31
2013

Dec 31
2012

% Change
2014-2015

Less
Than $100
Million

$100
Million to
$1 Billion

$1 Billion
to
$10 Billion

Greater
Than
$10 Billion

6,182
1,857
1,721
136
1,379
1,271
108
1,297
1,196
101

6,509
1,923
1,779
144
1,435
1,318
117
1,357
1,247
110

6,812
1,991
1,842
149
1,474
1,354
120
1,397
1,285
112

7,083
2,035
1,886
149
1,509
1,390
119
1,425
1,315
110

-5.0
-3.4
-3.3
-5.6
-3.9
-3.6
-7.7
-4.4
-4.1
-8.2

1,688
246
230
16
149
134
15
137
122
15

3,792
1,188
1,119
69
870
818
52
815
767
48

595
346
301
45
290
254
36
277
244
33

107
77
71
6
70
65
5
68
63
5

643,537
10,584
80,025
83,335
194,886
105,703
162,046
174,151
2,669,521
1,956
50,916
118,189

689,134
8,693
79,637
101,002
180,284
101,985
189,900
198,701
2,914,743
1,987
43,805
124,309

671,350
7,903
97,316
127,030
176,967
109,585
210,851
224,723
2,700,364
1,936
47,344
101,488

620,385
6,887
73,891
127,196
188,940
123,648
216,496
249,129
2,285,750
1,979
47,776
130,326

-6.6
21.8
0.5
-17.5
8.1
3.6
-14.7
-12.4
-8.4
-1.6
16.2
-4.9

15,455
36
278
2,290
6,514
3,040
10
8,127
38,473
338
1,043
1,265

58,284
706
5,026
3,178
7,569
6,705
75
5,213
110,267
235
7,292
13,333

71,908
133
11,405
13,259
29,206
13,443
6,334
13,563
174,036
270
10,421
9,204

497,890
9,709
63,317
64,609
151,597
82,516
155,627
147,248
2,346,745
1,113
32,159
94,387

342,058
551,428

361,774
612,253

403,358
582,751

391,320
536,981

-5.4
-9.9

1,043
2,196

6,356
3,714

12,251
19,241

322,408
526,276

290,678
19,437

310,073
20,957

276,834
22,832

232,270
26,349

-6.3
-7.3

3,829
1

27,295
387

40,109
4,440

219,446
14,608

1,433,304
370,871

1,559,780
391,075

1,299,675
548,705

1,205,400
439,314

-8.1
-5.2

36,562
2,328

55,281
8,281

109,565
23,759

1,231,896
336,502

3,651,314
1,693,534

3,945,046
1,635,991

3,805,506
1,557,905

3,452,017
1,432,470

-7.4
3.5

61,414
86,753

159,599
267,617

281,274
309,791

3,149,026
1,029,373

276,105

289,312

277,995

263,735

-4.6

11,033

21,203

24,226

219,642

2,030,732
4,248,691
1,342,944
2,657,559
3,096,575

2,208,911
4,208,533
1,612,404
2,568,742
3,503,111

3,122,507
3,983,936
2,631,474
2,472,022
3,353,848

2,572,659
3,488,956
2,297,113
2,620,041
2,826,277

-8.1
1.0
-16.7
3.5
-11.6

89,717
14,304
1,914
13
3,351

23,501
24,350
26,127
19,756
26,426

60,675
16,194
13,630
354,465
26,533

1,856,839
4,193,843
1,301,274
2,283,326
3,040,265

13,652,607
3,807,727

14,391,012
3,846,801

15,841,782
14,378,658

14,068,782
14,124,737

-5.1
-1.0

120,332
364,916

141,363
472,192

495,723
153,882

12,895,189
2,816,737

81,189,312
8,338,035

83,499,124
9,368,259

80,166,742
9,477,615

74,238,399
10,381,687

-2.8
-11.0

127,225
754,983

1,179,734
5,210,115

746,068
469,716

79,136,285
1,903,221

4,705

4,873

4,655

4,417

-3.4

122

251

544

3,788

1,199
1,412
1,529
1,469
7,452
699
13,317
970
32,886
31,273
367

1,190
1,381
1,498
1,371
6,988
827
13,091
1,157
32,515
30,825
220

1,281
1,336
1,350
1,317
6,125
816
12,494
1,451
30,992
29,519
245

1,202
1,283
1,194
1,305
5,400
847
11,559
1,386
28,766
28,035
274

0.8
2.2
2.1
7.1
6.6
-15.5
1.7
-16.2
1.1
1.5
66.8

17
8
42
0
175
2
13
5
387
266
2

40
19
258
36
404
21
383
115
1,610
1,174
1

203
39
232
262
854
7
482
137
2,769
2,238
18

939
1,346
997
1,171
6,018
668
12,440
713
28,119
27,595
346

4,942
6,052

5,406
6,732

5,507
6,565

6,001
6,272

-8.6
-10.1

0
117

14
366

228
732

4,699
4,838

558,174
188,975
137,836
146,148
3,925
145,387
52,694
1,233,139

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

-9.3
-2.4
-3.7
-5.2
-10.3
-18.5
10.8
-7.7

6,654
1,310
1,393
903
42
1,869
251
12,421

770
5,896
1,154
2,508
289
0
305
10,922

11,492
2,905
1,173
1,972
132
101
5,735
23,511

539,259
178,864
134,116
140,765
3,462
143,417
46,403
1,186,286

QUARTERLY BANKING PROFILE

Community Bank Performance
Community banks are identified based on criteria defined in the FDIC’s Community Banking Study. When comparing
community bank performance across quarters, prior-quarter dollar amounts are based on community banks designated
in the current quarter, adjusted for mergers. In contrast, prior-quarter performance ratios are based on community banks
designated during the previous quarter.
Earnings Rise 4 Percent to $5.1 Billion From Fourth Quarter 2014
Net Operating Revenue Increases, Outpacing Growth at Noncommunity Banks
Community Banks Benefit From Strong Balance Sheet Growth
Noncurrent Rate Declines for 23 Consecutive Quarters
Full-Year Earnings Grow From Higher Net Operating Revenue
Earnings Improve for More
Than Half (57 Percent) of
Community Banks

Community banks reported earnings of $5.1 billion during fourth quarter 2015, up
$198.7 million (4 percent) from the year-earlier quarter. Earnings improved on higher net
interest income and noninterest income, but were offset in part by higher loan-loss provisions
and noninterest expense. For the 5,735 community banks in fourth quarter 2015, close to
57 percent reported an improvement in earnings from the year before. The pretax return on
assets (ROA) was 1.23 percent, down 8 basis points from the previous quarter, but 6 basis
points above fourth quarter 2014. Unprofitable community banks totaled 9.6 percent during
the latest quarter—down from 10.2 percent a year earlier—the lowest fourth-quarter rate since
1996. There were 77 fewer community banks at the end of the quarter, with two bank failures.

Net Interest Margin Falls
While Net Interest Income
Increases Almost 7 Percent

Net operating revenue of $22.6 billion increased $1.6 billion (7.4 percent) from 12 months
ago, led by higher net interest income (up $1.1 billion, or 6.5 percent) and noninterest income
(up $489.5 million, or 10.8 percent). With nearly 70 percent of community banks increasing
net interest income from the year earlier, the annual rate at community banks surpassed that
of noncommunity banks (4.3 percent). Higher interest income in other real estate loans (up
$620 million, or 8.5 percent) lifted net interest income from fourth quarter 2014.1 Average
1 Other

real estate loans include construction and development, farmland, multifamily, and nonfarm nonresidential.

Chart 1

Chart 2

Contributors to the Year-Over-Year Change in Income

Net Interest Margin

FDIC-Insured Community Banks

Percent
Positive Factor

$ Billions

Community Banks
All Insured Institutions

Negative Factor

1.5

4.0
$0.20

$1.07

$0.07

$0.49

$0.83

-$0.08

$0.39

1.0
0.5

3.63

3.60

3.12

3.13

2014

2015

3.5
0.0
-0.5

+4%

+7%

Net
Income

Net
Interest
Income

Source: FDIC.

+10%

+11%

+6%

Loan Loss Noninterest Noninterest
Provisions
Income
Expense

-51%

+44%

Realized
Gains on
Securities

Income
Taxes

3.0
2007

2008

Source: FDIC.

2009

2010

2011

2012

2013

FDIC QUARTERLY 15

2016 •Volume 10 • Numb er 1

net interest margin (NIM) of 3.6 percent was down 3 basis points from the year before,
as average asset yields fell more rapidly than the average funding costs. Community banks
posted NIM 55 basis points above the average for noncommuntiy banks (3.05 percent).
Long-term assets represented 33.7 percent of total assets for community banks during the
fourth quarter, down from 34 percent in the previous year.2 For the past five of six consecu­
tive quarters, community banks decreased their share of long-term assets. However, the
share of long-term assets at community banks exceeded the 25.5 percent held by
noncommunity banks.
Noninterest Expense Increases
From Fourth Quarter 2014

Noninterest expense totaled $15.5 billion for the latest quarter, up $829 million (5.7 percent)
from 12 months earlier. Almost two out of every three community banks (64 percent)
increased noninterest expense from fourth quarter 2014. While noninterest expense
increased at community banks, it declined for noncommunity banks (down $2.4 billion, or
2.6 percent). The 12-month increase in noninterest expense for community banks was led by
higher salary and employee benefits (up $571.5 million, or 7.2 percent). Full-time employees
at community banks increased 11,958 (2.8 percent) from the year before, while declining
3,976 (0.2 percent) for noncommunity banks. Average assets per employee at community
banks totaled $4.8 million in the latest quarter, up from $4.7 the year before.

Full-Year Earnings Rise
9.7 Percent to $20.4 Billion

Full-year 2015 earnings of $20.4 billion, increased $1.8 billion (9.7 percent) from 2014.
Increased revenues from net interest income (up $3.9 billion, or 6.2 percent) and noninterest
income (up $2.3 billion, or 13.3 percent) were offset in part by higher loan-loss provisions
(up $42.8 million, or 1.8 percent) and noninterest expense (up $3.4 billion, or 6.1 percent).
Almost two out of every three community banks (63 percent) reported higher earnings from
2014. Pretax ROA totaled 1.27 percent for 2015, an improvement over 1.19 percent in 2014.
Annual pretax ROA was above 1 percent for the past four consecutive years.
2 Long-term

assets are loans and debt securities with remaining maturities or repricing intervals of over five years.

Chart 3

Chart 4

Change in Loan Balances and Unused Commitments

Noncurrent Loan Rates for FDIC-Insured Community Banks

FDIC-Insured Community Banks

Change 4Q 2015 vs. 4Q 2014
Change 4Q 2015 vs. 3Q 2015

$ Billions
34.4

Percent of Loan Portfolio Noncurrent

16

C&D Loans
Nonfarm Nonresidential RE
1-to-4 Family RE

C&I Loans
Home Equity
Credit Cards

14
12
20.5

10

14.7

6

9.0
5.5

Nonfarm
C&I
Nonresidential Loans
RE

Source: FDIC.

8

12.9

12.4

10.4
4.9

1-to-4
Family
Residential
RE

4.3
C&D
Loans

2.6

1.8

0.5

Agricultural Loans to
Production Individuals
Loans

Loan Balances

16 FDIC QUARTERLY

0.8

3.0

0.9

Home
Equity

1.6
CRE &
C&D

2.6
C&I
Loans

Unused
Commitments

4
2
0
2007

2008

Source: FDIC.

2009

2010

2011

2012

2013

2014

2015

QUARTERLY BANKING PROFILE

Loan Balances at Community
Banks Continue to Increase

Loans and leases represented 67.8 percent of total assets at community banks during fourth
quarter 2015, the highest since fourth quarter 2009. Total assets of $2.1 trillion increased
$39.8 billion (1.9 percent) from the third quarter, while loan and lease balances grew
$34.4 billion (2.5 percent). Close to 70 percent of community banks increased their loan and
lease balances from third quarter 2015. The quarterly increase in loan and lease balances was
led by nonfarm nonresidential loans (up $10.4 billion, or 2.6 percent), commercial and
industrial loans (up $5.5 billion, or 2.9 percent), 1-to-4 family residential mortgages (up
$4.9 billion, or 1.3 percent), multifamily residential mortgages (up $4.8 billion, or 5.5 percent),
and construction and development loans (up $4.3 billion, or 4.8 percent). The annual growth
rate in loan and lease balances (8.6 percent) was driven by nonfarm nonresidential loans (up
$34.4 billion, or 8.9 percent) and 1-to-4 family residential mortgages (up $20.5 billion, or
5.8 percent). Unused loan commitments of $271 billion increased $13.2 billion (5.1 percent)
from the year before, with unused commercial real estate loan commitments—including
construction and development—growing $12.9 billion (20.3 percent).

Small Loans to Businesses
Increase Quarterly and
Annually

With more than half (56 percent) of community banks increasing their small loans to businesses from third quarter 2015, small loans to business rose $2.3 billion (0.8 percent) to
$299.7 billion.3 The quarterly increase in small business loans at community banks was led
by commercial and industrial loans (up 1.1 billion, or 1.2 percent) and nonfarm nonresidential loans (up $876.6 million, or 0.6 percent). The 12-month increase in small loans to businesses at community banks (up $8.7 billion, or 3 percent) exceeded that of noncommunity
banks (up $6.1 billion, or 1.6 percent). The year-over-year increase at community banks was
driven by commercial and industrial loans (up $3.5 billion, or 3.9 percent), and nonfarm
nonresidential loans (up $3.1 billion, or 2.2 percent). Meanwhile, nonfarm nonresidential
loans at noncommunity banks declined (down $6.8 billion, or 4.7 percent). 4 Community
banks continued to hold 44 percent of all small loans to businesses.

Asset Quality for
Commercial and Industrial
Loans Declines Modestly

Noncurrent loan and lease balances totaled $15.8 billion in fourth quarter, down $2.4 billion
(13.3 percent) from the year before. More than half (57 percent) of community banks reduced
their noncurrent loan and lease balances from fourth quarter 2014. The noncurrent rate was
1.1 percent during fourth quarter 2015, the lowest since third quarter 2007. The rate remained
down 7 basis points from the previous quarter, and 26 basis points from a year-earlier quarter.
The noncurrent rate for community banks was 55 basis points below that at noncommunity
banks (1.65 percent). All major loan categories at community banks, except for commercial
and industrial loans, had lower noncurrent rates from the previous quarter and the year
before. The noncurrent rate for commercial and industrial loans (1.1 percent) increased for a
second consecutive quarter, after improving for 21 consecutive quarters. The quarterly net
charge-off rate (0.19 percent) increased (up 5 basis points) from third quarter 2015, led by
higher quarterly net charge-off rates among all major loan categories. Commercial and
industrial loans posted the largest quarterly increase (up 14 basis points). The quarterly net
charge-off rate for community banks was down 7 basis points from the previous year.
Author:
Benjamin Tikvina
Senior Financial Analyst
Division of Insurance and Research
(202) 898-6578
3 Small

loans to businesses consist of loans to commercial borrowers up to $1 million and farm loans up to $500,000.
nonresidential loans up to $1 million accounted for 37 percent of all small loans to businesses held by noncommunity
banks during the fourth quarter 2015.
4 Nonfarm

FDIC QUARTERLY 17

2016 •Volume 10 • Numb er 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 (%)

2015

2014

2013

2012

2011

2010

2009

1.00
8.92
10.67
1.06
0.14
2.72
3.57
10.34
5,735
4.81

0.93
8.46
10.57
1.34
0.21
2.31
3.61
4.90
6,037
6.44

0.90
8.28
10.43
1.73
0.32
0.33
3.59
14.61
6,306
8.40

0.83
7.68
10.18
2.26
0.58
2.25
3.67
56.25
6,541
11.15

0.55
5.19
9.98
2.84
0.87
1.60
3.74
207.82
6,798
16.34

0.21
2.07
9.57
3.25
1.11
-2.45
3.71
206.20
7,014
22.16

-0.15
-1.45
9.30
3.27
1.26
3.92
3.56
-157.14
7,252
29.73

* Excludes insured branches of foreign banks (IBAs).

TABLE II-B. Aggregate Condition and Income Data, FDIC-Insured Community Banks
4th Quarter
2015

3rd Quarter
2015

4th Quarter
2014

%Change
14Q4-15Q4

5,735
437,873

5,812
439,199

6,037
442,277

-5.0
-1.0

$2,120,123
1,094,593
376,496
418,590
93,634
50,632
196,423
59,991
2,172
51,316
36,460
637
1,438,146
18,513
1,419,633
438,355
6,581
13,826
241,728

$2,095,671
1,076,084
373,820
412,054
90,294
50,093
192,948
59,918
2,191
50,563
35,491
589
1,414,414
18,658
1,395,755
438,108
7,235
13,736
240,837

$2,064,065
1,039,774
364,954
400,378
85,125
50,063
190,456
59,007
1,828
48,574
31,147
590
1,368,368
18,994
1,349,374
448,665
8,749
12,597
244,681

2.7
5.3
3.2
4.5
10.0
1.1
3.1
1.7
18.8
5.6
17.1
8.0
5.1
-2.5
5.2
-2.3
-24.8
9.8
-1.2

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

2,120,123
1,736,305
1,735,905
400
71,376
1,313,767
131,753
479
15,704
235,882
235,772

2,095,671
1,717,378
1,716,992
385
69,905
1,306,039
125,040
455
16,802
235,996
235,877

2,064,065
1,693,727
1,693,497
230
60,879
1,305,418
125,290
497
15,702
228,849
228,718

2.7
2.5
2.5
73.8
17.2
0.6
5.2
-3.7
0.0
3.1
3.1

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

8,980
15,780
9,422
185,267
1,968,433
100,874
271,012
294,226
16,746
51,852

8,206
16,528
9,689
184,584
1,945,760
93,859
286,493
242,405
15,972
53,222

9,501
18,660
10,789
195,099
1,911,262
92,924
250,134
286,100
15,959
43,740

-5.5
-15.4
-12.7
-5.0
3.0
8.6
8.3
2.8
4.9
18.5

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

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


18 FDIC QUARTERLY

Full Year
2015

Full Year
2014

%Change

4th Quarter
2015

4th Quarter
2014

%Change
14Q4-15Q4

$76,442
8,657
67,785
2,424
19,544
59,330
521
5,701
8
20,403
20,376
1,950
10,129
10,247
19,983

$75,692
9,101
66,591
2,566
17,680
58,523
561
5,186
2
18,559
18,535
2,757
9,251
9,284
18,111

1.0
-4.9
1.8
-5.5
10.5
1.4
-7.1
9.9
244.1
9.9
9.9
-29.3
9.5
10.4
10.3

$19,754
2,217
17,537
760
5,024
15,451
77
1,279
6
5,154
5,149
674
3,308
1,841
5,082

$19,439
2,270
17,169
697
4,622
15,301
168
1,212
1
4,749
4,741
881
3,040
1,701
4,611

1.6
-2.3
2.1
9.1
8.7
1.0
-54.3
5.5
N/M
8.5
8.6
-23.5
8.8
8.2
10.2

N/M - Not Meaningful

QUARTERLY BANKING PROFILE
TABLE II-B. Aggregate Condition and Income Data, FDIC-Insured Community Banks
Prior Periods Adjusted for Mergers
4th Quarter
2015

3rd Quarter
2015

4th Quarter
2014

%Change
14Q4-15Q4

5,735
437,873

5,735
435,110

5,734
425,915

0.0
2.8

$2,120,123
1,094,593
376,496
418,590
93,634
50,632
196,423
59,991
2,172
51,316
36,460
637
1,438,146
18,513
1,419,633
438,355
6,581
13,826
241,728

$2,080,371
1,068,062
371,553
408,171
89,349
49,683
190,952
59,457
2,187
50,526
35,314
583
1,403,728
18,547
1,385,181
435,702
7,153
13,636
238,700

$2,003,739
1,005,210
356,010
384,216
81,192
47,635
181,725
58,152
2,267
48,691
31,214
569
1,324,422
18,472
1,305,949
438,882
8,484
12,051
238,372

5.8
8.9
5.8
8.9
15.3
6.3
8.1
3.2
-4.2
5.4
16.8
11.9
8.6
0.2
8.7
-0.1
-22.4
14.7
1.4

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

2,120,123
1,736,305
1,735,905
400
71,376
1,313,767
131,753
479
15,704
235,882
235,772

2,080,371
1,704,578
1,704,193
385
69,345
1,296,974
124,164
455
16,657
234,516
234,393

2,003,739
1,644,287
1,643,882
405
60,459
1,268,964
121,213
442
15,102
222,695
222,572

5.8
5.6
5.6
-1.2
18.1
3.5
8.7
8.3
4.0
5.9
5.9

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

8,980
15,780
9,422
185,267
1,968,433
100,874
271,012
294,226
16,746
51,852

8,156
16,409
9,644
183,165
1,931,586
93,105
284,192
242,669
15,972
52,459

9,428
18,209
10,721
190,018
1,855,450
89,279
257,787
283,152
13,950
40,218

-4.8
-13.3
-12.1
-2.5
6.1
13.0
5.1
3.9
20.0
28.9

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

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


Full Year
2015

Full Year
2014

%Change

4th Quarter
2015

4th Quarter
2014

%Change
14Q4-15Q4

$76,442
8,657
67,785
2,424
19,544
59,330
521
5,701
8
20,403
20,376
1,950
10,129
10,247
19,983

$72,532
8,696
63,836
2,381
17,245
55,942
541
4,698
1
18,603
18,579
2,606
9,069
9,510
18,174

5.4
-0.4
6.2
1.8
13.3
6.1
-3.8
21.4
453.6
9.7
9.7
-25.2
11.7
7.8
10.0

$19,754
2,217
17,537
760
5,024
15,451
77
1,279
6
5,154
5,149
674
3,308
1,841
5,082

$18,638
2,174
16,464
689
4,535
14,622
158
887
0
4,958
4,951
865
2,947
2,004
4,831

6.0
2.0
6.5
10.3
10.8
5.7
-51.1
44.1
N/M
4.0
4.0
-22.0
12.3
-8.1
5.2

N/M - Not Meaningful

FDIC QUARTERLY 19

2016 •Volume 10 • Numb er 1
TABLE III-B. Aggregate Condition and Income Data by Geographic Region, FDIC-Insured Community Banks
Fourth Quarter 2015
(dollar figures in millions)

Geographic Regions*
All Community Banks

New York

Atlanta

Chicago

Kansas City

Dallas

San Francisco

5,735
437,873

668
87,100

702
55,141

1,270
92,562

1,485
71,063

1,232
95,379

378
36,628

$2,120,123
1,094,593
376,496
418,590
93,634
50,632
196,423
59,991
2,172
51,316
36,460
637
1,438,146
18,513
1,419,633
438,355
6,581
13,826
241,728

$553,225
329,089
127,125
116,265
18,205
17,115
48,184
12,722
465
517
11,347
164
401,694
4,543
397,152
99,387
981
4,538
51,167

$245,919
135,272
44,132
57,762
15,412
7,617
18,990
6,674
132
1,167
2,760
135
164,728
2,175
162,553
48,837
1,677
1,170
31,681

$391,664
197,525
71,414
71,877
12,628
11,732
36,623
12,046
442
8,280
6,261
63
260,672
3,513
257,159
85,079
1,328
2,224
45,874

$331,614
149,996
48,754
49,481
12,314
4,675
32,074
9,871
498
29,016
5,472
42
226,388
3,061
223,327
69,357
971
1,764
36,195

$408,828
187,779
62,090
75,880
27,022
4,387
42,033
13,599
314
9,676
7,347
123
260,311
3,426
256,886
97,185
1,236
2,643
50,878

$188,874
94,931
22,980
47,325
8,053
5,106
18,519
5,079
321
2,660
3,274
110
124,352
1,795
122,557
38,510
387
1,487
25,933

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

2,120,123
1,736,305
1,735,905
400
71,376
1,313,767
131,753
479
15,704
235,882
235,772

553,225
435,775
435,424
351
25,022
321,297
50,281
312
5,349
61,508
61,455

245,919
203,956
203,948
8
7,040
155,762
12,901
20
1,658
27,385
27,374

391,664
323,773
323,755
18
12,139
259,513
21,067
75
2,895
43,854
43,827

331,614
272,352
272,352
0
10,672
214,642
20,961
15
1,836
36,449
36,448

408,828
343,372
343,372
0
10,130
253,030
18,334
6
2,358
44,758
44,741

188,874
157,077
157,053
24
6,372
109,524
8,209
51
1,609
21,928
21,927

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

8,980
15,780
9,422
185,267
1,968,433
100,874
271,012
294,226
16,746
51,852

2,498
5,531
2,567
55,149
516,895
41,457
70,006
62,945
4,197
18,920

1,239
2,178
1,412
20,827
226,421
10,342
29,390
12,954
526
6,006

1,560
2,965
2,495
32,872
363,078
14,792
50,492
78,413
6,008
8,737

1,194
1,617
1,095
22,189
308,255
14,913
45,206
79,557
810
6,989

2,041
2,590
1,094
35,738
377,705
14,359
48,549
47,965
622
7,164

448
898
758
18,491
176,079
5,012
27,369
12,391
4,582
4,035

$19,754
2,217
17,537
760
5,024
15,451
77
1,279
6
5,154
5,149
674
3,308
1,841
5,082

$4,950
714
4,236
280
942
3,629
27
335
2
963
961
164
418
543
938

$2,364
266
2,098
66
546
1,963
9
151
2
476
475
100
263
212
466

$3,557
391
3,167
65
1,278
3,013
12
259
2
1,121
1,120
132
805
315
1,109

$3,130
355
2,776
109
730
2,350
10
168
0
888
888
102
609
279
879

$3,984
362
3,622
205
931
3,091
13
138
0
1,132
1,131
155
826
305
1,119

$1,769
130
1,639
35
597
1,405
6
227
0
575
575
22
388
187
571

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

INCOME DATA
Total interest income
Total interest expense
Net interest income
Provision for loan and lease losses
Total noninterest income
Total noninterest expense
Securities gains (losses)
Applicable income taxes
Extraordinary gains, net
Total net income (includes minority interests)
		 Bank net income
Net charge-offs
Cash dividends
Retained earnings
Net operating income
* See Table V-A (page 11) for explanations.

20 FDIC QUARTERLY

QUARTERLY BANKING PROFILE
Table IV-B. Fourth Quarter 2015, FDIC-Insured Community Banks
All Community Banks
Performance ratios (annualized, %)
Yield on earning assets
Cost of funding earning assets
Net interest margin
Noninterest income to assets
Noninterest expense to assets
Loan and lease loss provision to assets
Net operating income to assets
Pretax return on assets
Return on assets
Return on equity
Net charge-offs to loans and leases
Loan and lease loss provision to net charge-offs
Efficiency ratio
Net interest income to operating revenue
% of unprofitable institutions
% of institutions with earnings gains

4th Quarter
2015
4.06
0.46
3.60
0.96
2.95
0.15
0.97
1.23
0.98
8.78
0.19
112.75
67.95
77.73
9.57
56.51

3rd Quarter
2015
4.08
0.46
3.62
0.95
2.91
0.11
0.99
1.31
1.00
8.92
0.14
116.78
67.26
77.89
5.33
58.38

Fourth Quarter 2015, Geographic Regions*
New York
3.88
0.56
3.32
0.69
2.66
0.20
0.69
0.95
0.70
6.29
0.17
170.76
68.98
81.81
11.53
56.59

Atlanta
4.22
0.47
3.75
0.90
3.23
0.11
0.77
1.03
0.78
6.96
0.25
66.55
73.84
79.35
15.24
57.41

Chicago
3.95
0.43
3.52
1.32
3.10
0.07
1.14
1.42
1.15
10.25
0.20
49.31
67.49
71.25
8.90
56.61

Kansas City
4.10
0.46
3.64
0.89
2.86
0.13
1.07
1.29
1.08
9.78
0.18
107.56
66.57
79.17
7.74
55.56

Dallas
4.26
0.39
3.87
0.92
3.06
0.20
1.11
1.25
1.12
10.16
0.24
132.22
67.54
79.55
8.12
56.66

San Francisco
4.07
0.30
3.77
1.28
3.01
0.07
1.22
1.72
1.23
10.54
0.07
156.16
62.49
73.30
9.79
57.67

Dallas
4.23
0.39
3.84
0.93
3.00
0.15
1.14
1.34
1.15
10.57
0.16
145.56
66.80
79.27
3.33
60.06

San Francisco
4.05
0.30
3.74
1.17
3.02
0.05
1.12
1.60
1.13
9.55
0.03
227.61
64.60
74.79
6.35
68.25

Table V-B. Full Year 2015, FDIC-Insured Community Banks
All Community Banks
Performance ratios (%)
Yield on earning assets
Cost of funding earning assets
Net interest margin
Noninterest income to assets
Noninterest expense to assets
Loan and lease loss provision to assets
Net operating income to assets
Pretax return on assets
Return on assets
Return on equity
Net charge-offs to loans and leases
Loan and lease loss provision to net charge-offs
Efficiency ratio
Net interest income to operating revenue
% of unprofitable institutions
% of institutions with earnings gains

Full Year
2015
4.03
0.46
3.57
0.96
2.90
0.12
0.98
1.27
1.00
8.92
0.14
124.29
67.56
77.62
4.81
63.40

Full Year
2014
4.10
0.49
3.61
0.89
2.93
0.13
0.91
1.19
0.93
8.46
0.21
93.08
69.11
79.02
6.44
63.62

Full Year 2015, Geographic Regions*
New York
3.87
0.56
3.31
0.70
2.62
0.17
0.69
1.04
0.72
6.43
0.16
150.48
68.57
81.58
6.89
61.53

Atlanta
4.15
0.48
3.67
0.92
3.15
0.09
0.80
1.07
0.82
7.32
0.17
82.37
73.13
78.52
9.12
63.39

Chicago
3.94
0.44
3.51
1.30
3.08
0.07
1.11
1.42
1.12
10.01
0.16
65.53
67.39
71.43
5.12
64.80

Kansas City
4.05
0.46
3.59
0.91
2.77
0.11
1.14
1.38
1.16
10.56
0.11
153.62
64.93
78.60
2.42
64.58

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

FDIC QUARTERLY 21

2016 •Volume 10 • Numb er 1
Table VI-B. Loan Performance, FDIC-Insured Community Banks
Geographic Regions*
December 31, 2015

All Community Banks

New York

Atlanta

Chicago

Kansas City

Dallas

San Francisco

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

0.60
0.42
0.38
0.16
0.46
1.03
0.50
1.83
2.01
1.83
0.40
0.62

0.56
0.42
0.38
0.16
0.50
0.90
0.51
2.86
2.27
2.88
0.31
0.62

0.74
0.51
0.43
0.14
0.50
1.36
0.56
1.90
1.27
1.91
0.23
0.75

0.64
0.31
0.38
0.23
0.48
1.12
0.35
1.09
2.10
1.06
0.26
0.60

0.51
0.36
0.38
0.12
0.27
0.81
0.58
1.11
3.22
0.99
0.39
0.53

0.73
0.47
0.45
0.21
0.62
1.28
0.57
2.36
0.98
2.40
0.64
0.78

0.31
0.31
0.20
0.08
0.26
0.63
0.44
0.93
0.93
0.93
0.37
0.36

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

1.14
1.52
1.00
0.40
0.73
1.49
1.10
0.69
1.10
0.67
0.81
1.10

1.35
1.66
1.12
0.22
0.86
1.97
1.20
0.77
1.35
0.75
3.35
1.38

1.41
2.76
1.16
0.85
0.66
1.42
0.99
1.04
0.47
1.05
0.48
1.32

1.27
1.57
1.18
0.75
0.79
1.57
0.94
0.49
1.16
0.46
0.38
1.14

0.75
1.32
0.88
0.43
0.39
0.78
1.00
0.46
1.40
0.42
0.37
0.71

0.98
0.89
0.88
0.77
0.56
1.21
1.31
0.90
0.74
0.90
0.44
1.00

0.70
1.16
0.57
0.12
0.67
0.97
0.95
0.36
0.81
0.33
0.60
0.72

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

0.08
0.05
0.08
0.03
0.12
0.11
0.26
0.80
4.35
0.66
0.15
0.14

0.11
0.17
0.15
0.02
0.14
0.11
0.24
0.97
3.96
0.86
0.16
0.16

0.11
0.18
0.09
0.08
0.13
0.11
0.30
0.80
1.65
0.79
0.24
0.17

0.12
0.03
0.10
0.06
0.19
0.18
0.28
0.59
3.57
0.47
0.15
0.16

0.04
-0.15
0.07
0.01
0.07
0.08
0.21
0.77
10.24
0.29
0.08
0.11

0.06
0.04
0.05
0.07
0.05
0.09
0.37
0.87
1.46
0.86
0.20
0.16

-0.04
-0.06
-0.05
0.00
0.00
-0.02
0.10
0.69
1.92
0.59
0.40
0.03

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

$1,094.6
93.6
418.6
92.0
50.6
376.5
196.4
60.0
2.2
57.8
87.8
1,438.8

$329.1
18.2
116.3
48.4
17.1
127.1
48.2
12.7
0.5
12.3
11.9
401.9

$135.3
15.4
57.8
6.2
7.6
44.1
19.0
6.7
0.1
6.5
3.9
164.9

$197.5
12.6
71.9
14.7
11.7
71.4
36.6
12.0
0.4
11.6
14.5
260.7

$150.0
12.3
49.5
7.6
4.7
48.8
32.1
9.9
0.5
9.4
34.5
226.4

$187.8
27.0
75.9
6.6
4.4
62.1
42.0
13.6
0.3
13.3
17.0
260.4

$94.9
8.1
47.3
8.4
5.1
23.0
18.5
5.1
0.3
4.8
5.9
124.5

271,012
21,987
53,064
90,942

70,006
4,720
15,959
22,310

29,390
3,755
7,333
8,430

50,492
2,467
7,739
19,199

45,206
2,617
5,914
15,213

48,549
6,149
11,959
16,182

27,369
2,279
4,160
9,608

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

* 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.

22 FDIC QUARTERLY

QUARTERLY BANKING PROFILE

Insurance Fund Indicators
DIF Reserve Ratio Rises 2 Basis Points to 1.11 Percent
Insured Deposits Increase by 1.8 Percent
Two Institutions Failed During Fourth Quarter
Total assets of the 6,182 FDIC-insured institutions increased by 1.1 percent ($167.8 billion)
during the fourth quarter of 2015. Total deposits increased by 1.7 percent ($199.4 billion),
domestic office deposits increased by 2.4 percent ($255.9 billion), and foreign office deposits decreased by 4.2 percent ($56.5 billion). Domestic interest-bearing deposits increased
by 2.8 percent ($215.1 billion), and noninterest-bearing deposits increased by 1.4 percent
($40.7 billion). For the 12 months ending December 31, total domestic deposits grew by
5.2 percent ($536.9 billion), with interest-bearing deposits and noninterest-bearing deposits each increasing by 5.2 percent ($388.8 billion and $148.1 billion, respectively).1 Other
borrowed money increased by 5.1 percent, securities sold under agreements to repurchase
declined by 16.4 percent, and foreign office deposits declined by 8 percent over the same
12-month period.2
Total estimated insured deposits increased by 1.8 percent in the fourth quarter of 2015.3 For
institutions existing at the start and the end of the most recent quarter, insured deposits
increased during the quarter at 4,311 institutions (70 percent), decreased at 1,846 institutions
(30 percent), and remained unchanged at only 32 institutions. Estimated insured deposits
increased by 5.3 percent over the 12 months ending December 31, 2015.
The DIF increased by $2.5 billion during the fourth quarter of 2015 to $72.6 billion (unaudited). Assessment income of $2.2 billion and a negative provision for insurance losses of
$930 million were the main drivers behind the fund balance increase. Interest on investments and other miscellaneous income added another $140 million to the fund. Fourth
quarter operating expenses and unrealized losses on available for sale securities reduced
the fund balance by $745 million. For all of 2015, eight insured institutions failed, with
combined assets of $6.7 billion, at a current estimated cost to the DIF of $0.8 billion. The
DIF’s reserve ratio was 1.11 percent on December 31, up from 1.09 percent at September
30, 2015, and 1.01 percent four quarters ago. In 2011, as part of the FDIC’s long-term fund
management plan, the FDIC Board of Directors adopted a lower rate schedule for regular
risk-based assessments that will go into effect the quarter after the DIF reserve ratio first
meets or exceeds 1.15 percent.4
Effective April 1, 2011, the deposit insurance assessment base changed to average consolidated total assets minus average tangible equity.5 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.6 Table 1 shows the distribution of the assessment base as of
December 31, by institution asset size category.

1 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.
4 Adoption

of Federal Deposit Insurance Corporation Restoration Plan, 75 Fed. Reg. 66293 (Oct. 27, 2010).

5 There

is an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under
Dodd-Frank.
6 The

Fourth Quarter 2010 Quarterly Banking Profile includes a more detailed explanation of these changes.

FDIC QUARTERLY 23

2016 •Volume 10 • Numb er 1

Table 1
Distribution of the Assessment Base for FDIC-Insured Institutions*
by Asset Size
Data as of December 31, 2015
Asset Size
Less Than $1 Billion

Number of Institutions

Percent of
Total Institutions

Assessment Base**
($ Bil.)

Percent of Base

5,480

88.6

$1,144.3

8.3

$1 - $10 Billion

595

9.6

1,485.9

10.8

$10 - $50 Billion

67

1.1

1,348.2

9.8

$50 - $100 Billion

14

0.2

861.2

6.2

Over $100 Billion

26

0.4

8,939.7

64.9

6,182

100.0

13,779.4

100.0

Total

* 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 DRR using both estimated insured deposits and the new assessment base as the denominator. As of December 31, 2015, the FDIC reserve ratio would have
been 0.53 percent using the new assessment base (compared to 1.11 percent using estimated
insured deposits), and the 2 percent DRR using estimated insured deposits would have been
0.95 percent using the new assessment base.
Author:
Kevin Brown
Senior Financial Analyst
Division of Insurance and Research
(202) 898-6817

24 FDIC QUARTERLY

QUARTERLY BANKING PROFILE
Table I-C. Insurance Fund Balances and Selected Indicators
Deposit Insurance Fund*

(dollar figures in millions)

4th
Quarter
2015

3rd
Quarter
2015

2nd
Quarter
2015

1st
Quarter
2015

4th
Quarter
2014

3rd
Quarter
2014

2nd
Quarter
2014

1st
Quarter
2014

4th
Quarter
2013

3rd
Quarter
2013

2nd
Quarter
2013

1st
Quarter
2013

4th
Quarter
2012

Beginning Fund Balance

$70,115

$67,589

$65,296

$62,780

$54,320

$51,059

$48,893

$47,191

$40,758

$37,871

$35,742

$32,958

$25,224

2,160

2,170

2,328

2,189

2,030

2,009

2,224

2,393

2,224

2,339

2,526

2,645

2,937

128

122

113

60

70

80

87

45

23

34

54

-9

66

0
447

0
410

0
434

0
396

0
408

0
406

0
428

0
422

302
436

156
298

0
439

0
436

0
469

-930

-578

-317

-426

-6,787

-1,663

-204

348

-4,588

-539

-33

-499

-3,344

12

2

3

6

-43

6

6

9

9

46

51

55

1,878

-298
2,485

64
2,526

-34
2,293

231
2,516

24
8,460

-91
3,261

73
2,166

25
1,702

-277
6,433

71
2,887

-96
2,129

30
2,784

-22
7,734

72,600

70,115

67,589

65,296

62,780

54,320

51,059

48,893

47,191

40,758

37,871

35,742

32,958

15.64

29.08

32.37

33.55

33.03

33.27

34.82

36.79

43.19

61.58

66.88

133.73

178.67

1.11

1.09

1.06

1.03

1.01

0.88

0.84

0.80

0.79

0.68

0.64

0.60

0.45

6,539,610

6,421,682

6,350,089

6,352,398

6,211,181

6,141,721

6,109,657

6,120,755

6,010,810

5,967,515

5,951,080

5,999,571

7,405,000

5.29

4.56

3.94

3.78

3.33

2.92

Changes in Fund Balance:
Assessments earned
Interest earned on
investment securities
Realized gain on sale of
investments
Operating expenses
Provision for insurance
losses
All other income,
net of expenses
Unrealized gain/(loss) on
available-for-sale
securities
Total fund balance change
Ending Fund Balance
Percent change from
   four quarters earlier
Reserve Ratio (%)
Estimated Insured
Deposits**
Percent change from
   four quarters earlier

2.66

2.02

-18.83

-17.67

-15.96

-14.67

6.19

Domestic Deposits
Percent change from
   four quarters earlier

10,949,935 10,695,505 10,629,336 10,616,459 10,408,189 10,213,201 10,099,416

9,962,545

9,825,480

9,631,665

9,424,637

9,454,796

9,474,721

5.37

3.70

6.02

5.45

6.85

7.88

Assessment Base***
Percent change from
   four quarters earlier

13,828,256 13,670,904 13,604,119 13,526,103 13,337,796 13,107,188 12,905,380 12,796,637 12,743,536 12,527,706 12,485,932 12,433,502 12,435,091

5.21

Number of Institutions
Reporting

4.72

5.25

6.56

5.93

6.04

7.16

3.68

4.30

5.41

5.70

4.66

4.63

3.36

2.92

2.48

2.05

2.68

1.28

2.27

6,191

6,279

6,357

6,428

6,518

6,598

6,665

6,739

6,821

6,900

6,949

7,028

7,092

DIF Reserve Ratios

Deposit Insurance Fund Balance
and Insured Deposits
($ Millions)

Percent of Insured Deposits
1.01

0.60

0.64

0.79

0.80

9/13 12/13

3/14

0.84

1.03

1.06

1.09

1.11

12/12
3/13
6/13
9/13
12/13
3/14
6/14
9/14
12/14
3/15
6/15
9/15
12/15

0.88

0.68

0.45

12/12

3/13

6/13

6/14

9/14

12/14

3/15

6/15

9/15 12/15

DIF
Balance

DIF-Insured
Deposits

$32,958
35,742
37,871
40,758
47,191
48,893
51,059
54,320
62,780
65,296
67,589
70,115
72,600

$7,405,000
5,999,571
5,951,080
5,967,515
6,010,810
6,120,755
6,109,657
6,141,721
6,211,181
6,352,398
6,350,089
6,421,682
6,539,610

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

2015

2014

2013

2012

2011

2010

Problem Institutions
Number of institutions
Total assets

183
$46,780

291
$86,712

467
$152,687

651
$232,701

813
$319,432

884
$390,017

Failed Institutions
Number of institutions
Total assets****

8
$6,706

18
$2,914

24
$6,044

51
$11,617

92
$34,923

157
$92,085

* Quarterly financial statement results are unaudited.
** 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.
*** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.
**** Total assets are based on final Call Reports submitted by failed institutions.

FDIC QUARTERLY 25

2016 •Volume 10 • Numb er 1
Table III-C. Estimated FDIC-Insured Deposits by Type of Institution
(dollar figures in millions)
December 31, 2015

Number of
Institutions

Total
Assets

Domestic
Deposits*

Est. Insured
Deposits

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

5,338
3,544
992
802

$14,893,442
2,411,332
10,149,584
2,332,525

$10,064,574
1,884,665
6,602,529
1,577,380

$5,827,890
1,354,176
3,651,081
822,633

FDIC-Insured Savings Institutions
		 OCC-Supervised Savings Institutions
		 FDIC-Supervised Savings Institutions
		Federal Reserve-Supervised

844
404
403
37

1,074,481
679,488
371,096
23,897

840,391
545,274
276,469
18,648

682,939
447,700
220,041
15,198

6,182

15,967,923

10,904,965

6,510,828

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

9

105,646

44,970

28,782

6,191

16,073,568

10,949,935

6,539,610

* 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, 2015 (dollar figures in billions)
Annual Rate in Basis Points

Number of
Institutions

Percent of Total
Institutions

Amount of
Assessment Base*

Percent of Total
Assessment Base

2.50-5.00

1,624

25.86

$1,945.9

14.23

5.01-7.50

3,101

49.39

10,235.3

74.87

7.51-10.00

949

15.11

1,012.6

7.41

10.01-15.00

383

6.10

404.0

2.96

15.01-20.00

18

0.29

21.8

0.16

20.01-25.00

169

2.69

43.6

0.32
0.00

25.01-30.00

1

0.02

0.2

30.01-35.00

34

0.54

7.5

0.05

0

0.00

0.0

0.00

greater than 35.00

* 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.

26 FDIC QUARTERLY

QUARTERLY BANKING PROFILE

Notes to Users

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

Tables I-A through VIII-A.
The information presented in Tables I-A through V-A of the
FDIC Quarterly Banking Profile is aggregated for all FDIC-insured
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 g­ eographic region. Quarterly
and full-year data are provided for selected indicators, including
aggregate condition and income data, performance ratios, condition
ratios, and structural changes, as well as past due, noncurrent, and
charge-off information for loans outstanding and other assets.

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

each banking organization. They include both a minimum and maximum number of total banking offices, a maximum level of deposits
for any one office, and location-based criteria. The limits on the
number of and deposits per office are 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 activi­ties 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.

Summary of FDIC Research Definition of Community
Banking Organizations
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
• Number of large MSAs with offices ≤ 2
• Number of states with offices ≤ 3
• No single office with deposits > indexed maximum branch
deposit size.4

1 Consumer

nonbank banks are financial institutions with limited charters that can
make commercial loans or take deposits, but not both.
2 Asset

size threshold indexed to equal $250 million in 1985 and $1 billion in 2010.

3 Maximum

number of offices indexed to equal 40 in 1985 and 75 in 2010.

4 Maximum

branch deposit size indexed to equal $1.25 billion in 1985 and $5 billion

in 2010.

FDIC QUARTERLY 27

2016 •Volume 10 • Numb er 1

Tables I-C through IV-C.

ACCOUNTING CHANGES

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 for Measurement-Period Adjustments Related to a
Business Combination
In September 2015, the Financial Accounting Standards Board
(FASB) issued Accounting Standards Update (ASU) No. 2015-16,
“Simplifying the Accounting for Measurement-Period Adjustments.”
Under Accounting Standards Codification Topic 805, Business
Combinations (formerly FASB Statement No. 141(R), “Business
Combinations”), if the initial accounting for a business combination
is incomplete by the end of the reporting period in which the combination occurs, the acquirer reports provisional amounts in its financial statements for the items for which the accounting is incomplete.
During the measurement period, the acquirer is required to adjust the
provisional amounts recognized at the acquisition date, with a corresponding adjustment to goodwill, to reflect new information obtained
about facts and circumstances that existed as of the acquisition date
that, if known, would have affected the measurement of the amounts
recognized as of that date. At present under Topic 805, an acquirer is
required to retrospectively adjust the provisional amounts recognized
at the acquisition date to reflect the new information. To simplify the
accounting for the adjustments made to provisional amounts, ASU
2015-16 eliminates the requirement to retrospectively account for the
adjustments. Accordingly, the ASU amends Topic 805 to require an
acquirer to recognize adjustments to provisional amounts that are
identified during the measurement period in the reporting period
in which adjustment amounts are determined. Under the ASU, the
acquirer also must recognize in the financial statements for the same
reporting period the effect on earnings, if any, resulting from the
adjustments to the provisional amounts as if the accounting for the
business combination had been completed as of the acquisition date.
In general, the measurement period in a business combination is
the period after the acquisition date during which the acquirer may
adjust provisional amounts reported for identifiable assets acquired,
liabilities assumed, and consideration transferred for the acquiree for
which the initial accounting for the business combination is incomplete at the end of the reporting period in which the combination
occurs. Topic 805 provides additional guidance on the measurement
period, which shall not exceed one year from the acquisition date,
and adjustments to provisional amounts during this period.
For institutions that are public business entities, as defined under U.S.
GAAP, ASU 2015-16 is effective for fiscal years, and interim periods
within those fiscal years, beginning after December 15, 2015. For
institutions that are not public business entities (i.e., that are p
­ rivate
companies), the ASU is effective for fiscal years beginning after
December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The ASU’s amendments to Topic 805
should be applied prospectively to adjustments to provisional
amounts that occur after the effective date of the ASU. Thus, institutions with a calendar year fiscal year that are public business entities
must apply the ASU to any adjustments to provisional amounts that
occur after January 1, 2016, beginning with their Call Reports for
March 31, 2016. Institutions with a calendar year fiscal year that are
private companies must apply the ASU to any adjustments to provisional amounts that occur after January 1, 2017, beginning with their
Call Reports for December 31, 2017. Early application of ASU 201516 is permitted in Call Reports that have not been submitted.
For additional information, institutions should refer to ASU
2015-16, which is available at http://www.fasb.org/jsp/FASB/Page/
SectionPage&cid=1176156316498.

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 doublecounting. No adjustments are made for any double-counting of subsidiary data. Additionally, c­ ertain adjustments are made to the OTS
Thrift Financial Reports to provide closer conformance with the
reporting and accounting requirements of the FFIEC Call Reports.
(TFR ­filers began filing Call Reports effective with the quarter
­ending March 31, 2012.)
All condition and performance ratios represent weighted averages,
i.e., the sum of the individual numerator values divided by the sum
of individual denominator values. All asset and liability figures used
in calculating performance ratios represent average amounts for the
period (beginning-of-period amount plus end-of-period amount plus
any interim periods, divided by the total number of periods). For
“pooling-of-interest” mergers, the assets of the acquired institution(s)
are included in average assets since the year-to-date income includes
the results of all merged institutions. No adjustments are made for
“purchase accounting” mergers. Growth rates represent the percentage change over a 12-month period in totals for institutions in the
base period to totals for institutions in the current period. For the
community bank subgroup, growth rates will reflect changes over
time in the number and identities of institutions designated as community banks, as well as changes in the assets and liabilities, and
income and expenses of group members. Unless indicated otherwise,
growth rates are not adjusted for mergers or other changes in the
composition of the community bank subgroup.
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.

28 FDIC QUARTERLY

QUARTERLY BANKING PROFILE

Debt Issuance Costs
In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the
Presentation of Debt Issuance Costs.” This ASU requires debt issuance costs associated with a recognized debt liability to be presented
as a direct deduction from the face amount of the related debt liability, similar to debt discounts. The ASU is limited to the presentation
of debt issuance costs; therefore, the recognition and measurement guidance for such costs is unaffected. At present, Accounting
Standards Codification (ASC) Subtopic 835-30, Interest—Imputation
of Interest, requires debt issuance costs to be reported on the balance
sheet as an asset (i.e., a deferred charge). For Call Report purposes,
the costs of issuing debt currently are reported, net of accumulated
amortization, in “Other assets.”
For institutions that are public business entities, as defined under U.S.
GAAP, ASU 2015-03 is effective for fiscal years, and interim periods
within those fiscal years, beginning after December 15, 2015. 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, 2016. For institutions that are not public business entities
(i.e., that are private companies), the ASU is effective for fiscal years
beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Thus, institutions with
a calendar year fiscal year that are private companies must apply
the ASU in their December 31, 2016, and subsequent quarterly Call
Reports. Early adoption of the guidance in ASU 2015-03 is permitted.
Extraordinary Items
In January 2015, the FASB issued ASU No. 2015-01, “Simplifying
Income Statement Presentation by Eliminating the Concept of
Extraordinary Items.” This ASU eliminates from U.S. GAAP the
concept of extraordinary items. At present, ASC Subtopic 225-20,
Income Statement—Extraordinary and Unusual Items (formerly
Accounting Principles Board Opinion No. 30, “Reporting the Results
of Operations”), requires an entity to separately classify, present, and
disclose extraordinary events and transactions. An event or transaction is presumed to be an ordinary and usual activity of the reporting
entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction currently meets the criteria for
extraordinary classification, an institution must segregate the extraordinary item from the results of its ordinary operations and report the
extraordinary item in its income statement as “Extraordinary items
and other adjustments, net of income taxes.”
ASU 2015-01 is effective for fiscal years, and interim periods within
those fiscal years, beginning after December 15, 2015. Thus, for
example, institutions with a calendar year fiscal year must begin
to apply the ASU in their Call Reports for March 31, 2016. Early
adoption of ASU 2015-01 is permitted provided that the guidance
is applied from the beginning of the fiscal year of adoption. For Call
Report purposes, an institution with a calendar year fiscal year must
apply the ASU prospectively, that is, in general, to events or transactions occurring after the date of adoption. However, an institution
with a fiscal year other than a calendar year may elect to apply ASU
2015-01 prospectively or, alternatively, it may elect to apply the ASU
retrospectively to all prior calendar quarters included in the institution’s year-to-date Call Report income statement that includes the
beginning of the fiscal year of adoption.
After an institution adopts ASU 2015-01, any event or transaction
that would have met the criteria for extraordinary classification
before the adoption of the ASU should be reported in “Other noninterest income,” or “Other noninterest expense,” as appropriate, unless
the event or transaction would otherwise be reportable in the income

statement. In addition, consistent with ASU 2015-01, the agencies
plan to remove reference to the term “extraordinary items” from the
Call Report income statement.
For additional information, institutions should refer to ASU
2015-01, which is available at http://www.fasb.org/jsp/FASB/Page/
SectionPage&cid=1176156316498.
Accounting by Private Companies for Identifiable Intangible Assets
in a Business Combination
In December 2014, the FASB issued ASU No. 2014-18, “Accounting
for Identifiable Intangible Assets in a Business Combination,” which
is a consensus of the Private Company Council (PCC). This ASU
provides an accounting alternative that permits a private company,
as defined in U.S. GAAP (and discussed in a later section of these
Supple­mental Instructions), to simplify the accounting for certain
intangible assets. The accounting alternative applies when a private
company is required to recognize or otherwise consider the fair value
of intangible assets as a result of certain transactions, including when
applying the acquisition method to a business combination under
ASC Topic 805, Business Combinations (formerly FASB Statement
No. 141 (revised 2007), “Business Combinations”).
Under ASU 2014-18, a private company that elects the accounting
alternative should no longer recognize separately from goodwill:
• Customer-related intangible assets unless they are capable of being
sold or licensed independently from the other assets of a business,
and
• Noncompetition agreements.
However, because mortgage servicing rights and core deposit intangibles are regarded as capable of being sold or licensed independently,
a private company that elects this accounting alternative must recognize these intangible assets separately from goodwill, initially measure
them at fair value, and subsequently measure them in accordance
with ASC Topic 350, Intangibles–Goodwill and Other (formerly
FASB Statement No. 142, “Goodwill and Other Intangible Assets”).
A private company that elects the accounting alternative in
ASU 2014-18 also must adopt the private company goodwill accounting alternative described in ASU 2014-02, “Accounting for Goodwill.”
However, a private company that elects the goodwill accounting
alternative in ASU 2014-02 is not required to adopt the accounting
alternative for identifiable intangible assets in ASU 2014-18.
A private company’s decision to adopt ASU 2014-18 must be made
upon the occurrence of the first business combination (or other
transaction within the scope of the ASU) in fiscal years beginning
after December 15, 2015. The effective date of the private company’s
decision to adopt the accounting alternative for identifiable intangible
assets depends on the timing of that first transaction.
If the first transaction occurs in the private company’s first fiscal year
beginning after December 15, 2015, the adoption will be effective for
that fiscal year’s annual financial reporting period and all interim and
annual periods thereafter. If the first transaction occurs in a fiscal
year beginning after December 15, 2016, the adoption will be effective in the interim period that includes the date of the transaction and
subsequent interim and annual periods thereafter.
Early application of the intangibles accounting alternative is permitted for any annual or interim period for which a private company’s
financial statements have not yet been made available for issuance.
Customer-related intangible assets and noncompetition agreements
that exist as of the beginning of the period of adoption should continue to be accounted for separately from goodwill, i.e., such existing
intangible assets should not be combined with goodwill.

FDIC QUARTERLY 29

2016 •Volume 10 • Numb er 1

A bank or savings association that meets the private company definition in U.S. GAAP is permitted, but not required, to adopt ASU 201418 for Call Report purposes and may choose to early adopt the ASU,
provided it also adopts the private company goodwill accounting
alternative. If a private institution issues U.S. GAAP financial statements and adopts ASU 2014-18, it should apply the ASU’s intangible
asset accounting alternative in its Call Report in a manner consistent
with its reporting of intangible assets in its financial statements.
For additional information on the private company a­ ccounting alternative for identifiable intangible assets, i­nstitutions should refer to
ASU 2014-18, which is available at http://www.fasb.org/jsp/FASB/
Page/SectionPage&cid=1176156316498.
Private Company Accounting Alternatives
In May 2012, the Financial Accounting Foundation, the independent
private sector organization responsible for the oversight of the FASB,
approved the establishment of the PCC to improve the process of setting accounting standards for private companies. The PCC is charged
with working jointly with the FASB to determine whether and in
what circumstances to provide alternative recognition, measurement,
disclosure, display, effective date, and transition guidance for private
companies reporting under U.S. GAAP. Alternative guidance for private companies may include modifications or exceptions to otherwise
applicable existing U.S. GAAP standards.
The banking agencies have concluded that a bank or savings association that is a private company, as defined in U.S. GAAP (as discussed
in a later section of these Supplemental Instructions), is permitted
to use private company accounting alternatives issued by the FASB
when preparing its Call Reports, except as provided in 12 U.S.C.
1831n(a) as described in the following sentence. If the agencies
determine that a particular accounting principle within U.S. GAAP,
including a private company accounting alternative, is inconsistent
with the statutorily specified supervisory objectives, the agencies may
prescribe an accounting principle for regulatory reporting purposes
that is no less stringent than U.S. GAAP. In such a situation, an institution would not be permitted to use that particular private company
accounting alternative or other accounting principle within U.S.
GAAP for Call Report purposes. The agencies would provide appropriate notice if they were to disallow any accounting alternative under
the statutory process.
Accounting by Private Companies for Goodwill
On January 16, 2014, the FASB issued ASU No. 2014-02,
“Accounting for Goodwill,” which is a consensus of the PCC. This
ASU generally permits a private company to elect to amortize goodwill on a straight-line basis over a period of ten years (or less than ten
years if more appropriate) and apply a simplified impairment model
to goodwill. In addition, if a private company chooses to adopt the
ASU’s goodwill accounting alternative, the ASU requires the private
company to make an accounting policy election to test goodwill
for impairment at either the entity level or the reporting unit level.
Goodwill must be tested for impairment when a triggering event
occurs that indicates that the fair value of an entity (or a reporting
unit) may be below its carrying amount. In contrast, U.S. GAAP does
not otherwise permit goodwill to be amortized, instead requiring
goodwill to be tested for impairment at the reporting unit level annually and between annual tests in certain circumstances. The ASU’s
goodwill accounting alternative, if elected by a private company, is
effective prospectively for new goodwill recognized in annual periods
beginning after December 15, 2014, and in interim periods within
annual periods beginning after December 15, 2015. Goodwill existing as of the beginning of the period of adoption is to be amortized

30 FDIC QUARTERLY

prospectively over ten years (or less than ten years if more appropriate). The ASU states that early application of the goodwill accounting
alternative is permitted for any annual or interim period for which a
private company’s financial statements have not yet been made available for issuance.
A bank or savings association that meets the private company definition in ASU 2014-02, as discussed in the following section of these
Supplemental Instructions (i.e., a private institution), is permitted,
but not required, to adopt this ASU for Call Report purposes and
may choose to early adopt the ASU. If a private institution issues U.S.
GAAP financial statements and adopts the ASU, it should apply the
ASU’s goodwill accounting alternative in its Call Report in a manner
consistent with its reporting of goodwill in its financial statements.
Thus, for example, a private institution with a calendar year fiscal year that chooses to adopt ASU 2014-02 must apply the ASU’s
provisions in its December 31, 2015, and subsequent quarterly Call
Reports unless early application of the ASU was elected. This would
require the private institution to report in its December 31, 2015, Call
Report one year’s amortization of goodwill existing as of January 1,
2015, and the amortization of any new goodwill recognized in 2015.
For additional information on the private company accounting
alternative for goodwill, institutions should refer to ASU 201402, which is available at http://www.fasb.org/jsp/FASB/Page/
SectionPage&cid=1176156316498.
Definitions of Private Company and Public Business Entity
According to ASU No. 2014-02, “Accounting for Goodwill,” a private
company is a business entity that is not a public business entity. ASU
No. 2013-12, “Definition of a Public Business Entity,” which was
issued in December 2013, added this term to the Master Glossary
in the Accounting Standards Codification. This ASU states that a
business entity, such as 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 b
­ usiness
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 GovernmentGuaranteed 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. The ASU clarifies the conditions under which a
creditor must derecognize a government-guaranteed mortgage loan
and recognize a separate “other receivable” upon foreclosure (that is,
when a creditor receives physical possession of real estate property
collateralizing a mortgage loan in accordance with the guidance in
ASC Subtopic 310-40).

QUARTERLY BANKING PROFILE

Under the ASU, institutions should derecognize a mortgage loan and
record a separate other receivable upon foreclosure of the real estate
collateral if the following conditions are met:
• The loan has a government guarantee that is not separable from the
loan before foreclosure.
• At the time of foreclosure, the institution has the intent to convey
the property to the guarantor and make a claim on the guarantee
and it has the ability to recover under that claim.
• At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed (that
is, the real estate property has been appraised for purposes of the
claim and thus the institution is not exposed to changes in the fair
value of the property).
This guidance is applicable to fully and partially government-­
guaranteed mortgage loans provided the three conditions identified
above have been met. In such situations, 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.
For institutions that are public business entities, as defined under
U.S. GAAP (as discussed in an earlier section of these Supplemental
Instructions), 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 2014-14 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.”
For additional information, institutions should refer to ASU
2014-14, which is available at http://www.fasb.org/jsp/FASB/Page/
SectionPage&cid=1176156316498.
Reclassification of Residential Real Estate Collateralized
Consumer Mortgage Loans Upon Foreclosure
In January 2014, the FASB issued Accounting Standards Update
(ASU) No. 2014-04, “Reclassification of Residential 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 residen-

tial 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 fore­
closure even if the borrower has redemption rights that provide the
borrower with a legal right for a period of time after foreclosure to
reclaim the property by paying certain amounts specified by law, or
• The completion of a deed in lieu of foreclosure or similar legal
agreement under which the borrower conveys all interest in the
residential real estate property to the institution to satisfy the loan.
Loans secured by real estate other than consumer mortgage loans collateralized by residential real estate should continue to be reclassified
to OREO when the institution has received physical possession of a
borrower’s real estate, regardless of whether formal foreclosure proceedings take place.
For institutions that are public business entities, as defined under U.S.
generally accepted accounting principles, ASU 2014-04 is effective for
fiscal years, and interim periods within those fiscal years, beginning
after December 15, 2014. For example, institutions with a calendar
year fiscal year that are public business entities must apply the ASU
in their Call Reports beginning March 31, 2015. However, institutions that are not public business entities are not required to apply
the guidance in ASU 2014-04 until annual periods beginning after
December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Thus, institutions with a calendar year
fiscal year that are not public business entities must apply the ASU
in their December 31, 2015, and subsequent quarterly Call Reports.
Earlier adoption of the guidance in ASU 2014-04 is permitted.
Entities can elect to apply the ASU on either a modified retrospective
transition basis or a prospective transition basis. Applying the ASU on
a prospective transition basis should be less complex for institutions
than applying the ASU on a modified retrospective transition basis.
Under the prospective transition method, an institution should apply
the new guidance to all instances where it receives physical possession
of residential real estate property collateralizing consumer mortgage
loans that occur after the date of adoption of the ASU. Under the
modified retrospective transition method, an institution should apply
a cumulative-effect adjustment to residential consumer mortgage
loans and OREO existing as of the beginning of the annual period
for which the ASU is effective. As a result of adopting 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 p
­ ortion 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 losssharing 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

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2016 •Volume 10 • Numb er 1

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 losssharing 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 losssharing 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. 2012-06 – In October 2012, the FASB issued Accounting
Standards Update (ASU) No. 2012-06, “Subsequent Accounting
for an Indemnification Asset Recognized at the Acquisition Date
as a Result of a Government-Assisted Acquisition of a Financial
Institution,” to address the subsequent measurement of an indemnification asset recognized in an acquisition of a financial institution that
includes an FDIC loss-sharing agreement. This ASU amends ASC
Topic 805, Business Combinations (formerly FASB Statement No.
141 (revised 2007), “Business Combinations”), which includes guidance applicable to FDIC-assisted 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.

32 FDIC QUARTERLY

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.
Accounting for Loan Participations – Amended ASC Topic 860
(formerly FAS 166) modified the criteria that must be met in order
for a transfer of a portion of a financial asset, such as a loan participation, to qualify for sale accounting—refer to previously published
Quarterly Banking Profile notes: http://www5.fdic.gov/qbp/2011mar/
qbpnot.html.
Other-Than-Temporary Impairment – When the fair value of an
investment in an individual available-for-sale or held-to-maturity
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://www5.
fdic.gov/qbp/2011mar/qbpnot.html.
Accounting Standards Codification – refer to previously published
Quarterly Banking Profile notes: http://www5.fdic.gov/qbp/2011sep/
qbpnot.html.

DEFINITIONS (in alphabetical order)
All other assets – total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate,
investment in unconsolidated subsidiaries, customers’ liability on
acceptances outstanding, assets held in trading accounts, federal
funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid deposit insurance assessments, and
other assets.
All other liabilities – bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses,
fair market value of derivatives, and other liabilities.
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

QUARTERLY BANKING PROFILE

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 sellerprovided credit enhancements.
Capital Purchase Program (CPP) – as announced in October 2008
under the TARP, the Treasury Department purchase of noncumulative perpetual preferred stock and related warrants that is treated as
Tier 1 capital for regulatory capital purposes is included in “Total
equity capital.” Such warrants to purchase common stock or non­
cumulative preferred stock issued by publicly-traded banks are
reflected as well in “Surplus.” Warrants to purchase common stock or
noncumulative preferred stock of not-publicly-traded bank stock are
classified in a bank’s balance sheet as “Other liabilities.”
Common equity tier 1 capital ratio – ratio of common equity tier 1
capital to risk-weighted assets. Common equity tier 1 capital includes
common stock instruments and related surplus, retained earnings,
accumulated other comprehensive income (AOCI), and limited
amounts of common equity tier 1 minority interest, minus applicable
regulatory adjustments and deductions. Items that are fully deducted
from common equity tier 1 capital include goodwill, other intangible
assets (excluding mortgage servicing assets) and certain deferred tax
assets; items that are subject to limits in common equity tier 1 capital
include mortgage servicing assets, eligible deferred tax assets, and certain significant investments.
Construction and development loans – includes loans for all
­property types under construction, as well as loans for land acquisition and development.
Core capital – common equity capital plus noncumulative perpetual
preferred stock plus minority interest in consolidated subsidiaries,
less goodwill and other ineligible intangible assets. The amount of
­eligible intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations.
Cost of funding earning assets – total interest expense paid on
deposits and other borrowed money as a percentage of average earning assets.
Credit enhancements – techniques whereby a company attempts to
reduce the credit risk of its obligations. Credit enhancement may be
provided by a third party (external credit enhancement) or by the
originator (internal credit enhancement), and more than one type of
enhancement may be associ­ated with a given issuance.
Deposit Insurance Fund (DIF) – the Bank (BIF) and Savings
Association (SAIF) Insurance Funds were merged in 2006 by the
Federal Deposit Insurance Reform Act to form the DIF.
Derivatives notional amount – the notional, or contractual, amounts
of derivatives represent the level of involvement in the types of
derivatives transactions and are not a quantification of market risk or
credit risk. Notional amounts represent the amounts used to calculate
contractual cash flows to be exchanged.
Derivatives credit equivalent amount – the fair value of the derivative
plus an additional amount for potential future c­ redit exposure based on
the notional amount, the remaining maturity and type of the contract.

Derivatives transaction types:
Futures and forward contracts – contracts in which the buyer
agrees to purchase and the seller agrees to sell, at a specified

future date, a specific quantity of an underlying variable or index
at a specified price or yield. These contracts exist for a variety of
variables or indices, (traditional agricultural or physical commodities, as well as currencies and interest rates). Futures contracts are
standardized and are traded on organized exchanges which set
limits on counterparty credit exposure. Forward contracts do not
have standardized terms and are traded over the counter.
Option contracts – contracts in which the buyer acquires the right
to buy from or sell to another party some specified amount of an
un­derlying variable or index at a stated price (strike price) during
a period or on a specified future date, in return for compensation
(such as a fee or premium). The seller is obligated to purchase or
sell the variable or index at the discretion of the buyer of the
contract.
Swaps – obligations between two parties to exchange a series of
cash flows at periodic intervals (settlement dates), for a specified
period. The cash flows of a swap are either fixed, or determined
for each settlement date by multiplying the quantity (notional
principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged.
Derivatives underlying risk exposure – the potential exposure characterized by the level of banks’ concentration in particular underlying
instruments, in general. Exposure can result from market risk, credit
risk, and operational risk, as well as, interest rate risk.
Domestic deposits to total assets – total domestic office deposits as
a percent of total assets on a consolidated basis.
Earning assets – all loans and other investments that earn interest or
dividend income.
Efficiency ratio – Noninterest expense less amortization of intangible
assets as a percent of net interest income plus noninterest income.
This ratio measures the proportion of net operating revenues that
are absorbed by overhead expenses, so that a lower value indicates
greater efficiency.
Estimated insured deposits – in general, insured deposits are total
domestic deposits minus estimated uninsured deposits. Beginning
March 31, 2008, for institutions that file Call Reports, insured deposits are total assessable deposits minus estimated uninsured deposits.
Beginning September 30, 2009, insured deposits include deposits in
accounts of $100,000 to $250,000 that are covered by a temporary
increase in the FDIC’s standard maximum deposit insurance amount
(SMDIA). The Dodd-Frank Wall Street Reform and Consumer
Protection Act enacted on July 21, 2010, made permanent the standard maximum deposit insurance amount (SMDIA) of $250,000.
Also, the Dodd-Frank Act amended the Federal Deposit Insurance
Act to include noninterest-bearing transaction accounts as a new
temporary deposit insurance account category. All funds held in
noninterest-bearing transaction accounts were fully insured, without
limit, from December 31, 2010, through December 31, 2012.

Failed/assisted institutions – an institution fails when regulators
take control of the institution, placing the assets and liabilities into a
bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover
losses. An institution is defined as “assisted” when the institution
remains open and receives assistance in order to continue operating.
Fair Value – the valuation of various assets and liabilities on the balance sheet—including trading assets and liabilities, available-for-sale
securities, loans held for sale, assets and l­iabilities accounted for
under the fair value option, and foreclosed assets—involves the use

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2016 •Volume 10 • Numb er 1

of fair values. During periods of market stress, the fair values of some
financial instruments and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC insured institutions from
the Federal Home Loan Bank System (FHLB), as reported by Call
Report filers, and by TFR filers prior to March 31, 2012.
Goodwill and other intangibles – intangible assets include s­ ervicing
rights, purchased credit card relationships, and other identifiable
intangible assets. Goodwill is the excess of the purchase price over the
fair market value of the net assets acquired, less subsequent impairment adjustments. Other intangible assets are recorded at fair value,
less subsequent quarterly amortization and impairment adjustments.
Loans secured by real estate – includes home equity loans, junior
liens secured by 1-4 family residential properties, and all other loans
secured by real estate.
Loans to individuals – includes outstanding credit card balances and
other secured and unsecured consumer loans.
Long-term assets (5+ years) – loans and debt securities with remaining maturities or repricing intervals of over five years.
Maximum credit exposure – the maximum contractual credit
exposure remaining under recourse arrangements and other sellerprovided credit enhancements provided by the reporting bank to
securitizations.
Mortgage-backed securities – certificates of participation in pools
of residential mortgages and collateralized mortgage obligations
issued or guaranteed by government-sponsored or private enter­
prises. Also, see “Securities,” below.
Net charge-offs – total loans and leases charged off (removed from
balance sheet because of uncollectability), less amounts recovered on
loans and leases previously charged off.
Net interest margin – the difference between interest and dividends
earned on interest-bearing assets and interest paid to depositors and
other creditors, expressed as a percentage of average earning assets.
No adjustments are made for interest income that is tax exempt.
Net loans to total assets – loans and lease financing receivables, net
of unearned income, allowance and reserves, as a percent of total
assets on a consolidated basis.
Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and
extraordinary items. Income taxes subtracted from operating income
have been adjusted to exclude the portion applicable to securities
gains (or losses).
Noncurrent assets – the sum of loans, leases, debt securities, and
other assets that are 90 days or more past d­ue, or in nonaccrual status.
Noncurrent loans & leases – the sum of loans and leases 90 days or
more past due, and loans and leases in nonaccrual status.
Number of institutions reporting – the number of institutions that
actually filed a financial report.
New reporters – insured institutions filing quarterly financial reports
for the first time.
Other borrowed funds – federal funds purchased, securities sold with
agreements to repurchase, demand notes issued to the U.S. Treasury,
FHLB advances, other borrowed money, mortgage indebtedness,
obligations under capitalized leases and trading liabilities, less revaluation losses on assets held in trading accounts.

34 FDIC QUARTERLY

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 v­ aluation allowance subtracted also
includes allowances for other repossessed assets. Also, for TFR filers
the components of other real estate owned are reported gross of valuation allowances. (TFR filers began filing Call Reports effective with
the quarter ending March 31, 2012.)
Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their losses) compared to the same period a year earlier.
“Problem” institutions – federal regulators assign a composite rating
to each financial institution, based upon an evaluation of financial
and operational criteria. The rating is based on a scale of 1 to 5 in
ascending order of supervisory concern. “Problem” institutions are
those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending
upon the degree of risk and supervisory concern, they are rated
either a “4” or “5.” The number and assets of “problem” institutions
are based on FDIC composite ratings. Prior to March 31, 2008, for
institutions whose primary federal regulator was the OTS, the OTS
composite rating was used.
Recourse – an arrangement in which a bank retains, in form or in
substance, any credit risk directly or indirectly associated with an
asset it has sold (in accordance with generally accepted accounting
principles) that exceeds a pro rata share of the bank’s claim on the
asset. If a bank has no claim on an asset it has sold, then the retention
of any credit risk is recourse.
Reserves for losses – the allowance for loan and lease losses on a
consolidated basis.
Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. Excludes
restructured loans and leases that are not in compliance with the
modified terms.
Retained earnings – net income less cash dividends on common and
preferred stock for the reporting period.
Return on assets – bank net income (including gains or losses on
securities and extraordinary items) as a percentage of aver­age total
(consolidated) assets. The basic yardstick of bank profitability.
Return on equity – bank net income (including gains or losses on
securities and extraordinary items) as a percentage of average total
equity capital.
Risk-based capital groups – definitions:
Capital Ratios Used to Determine Capital Evaluations for Assessment
Purposes, Effective January 1, 2015*
Total RiskBased Capital
Ratio

Tier 1 RiskBased Capital
Ratio

Well
Capitalized

≥10%

≥8%

≥6.5%

≥5%

Adequately
Capitalized**

≥8%

≥6%

≥4.5%

≥4%

Capital
Evaluations

Under­
capitalized

Common Equity
Tier 1 Capital
Ratio
Leverage Ratio

Does not qualify as either Well Capitalized or
Adequately Capitalized

* Effective January 1, 2018, the supplemental leverage ratio will be added to capital
evaluations for deposit insurance assessment purposes.
**An institution is Adequately Capitalized if it is not Well Capitalized, but satisfies
each of the listed capital ratio standards for Adequately Capitalized.

QUARTERLY BANKING PROFILE

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.
Supervisory Group
Capital Category

1. Well Capitalized
2. Adequately
Capitalized
3. Undercapitalized

A

B

C

II
14 bps

III
23 bps

I

5–9 bps
II
14 bps
III
23 bps

IV
35 bps

Effective April 1, 2011, the initial base assessment rates are 5 to
35 basis points. An institution’s total assessment rate may be less than
or greater than its initial base assessment rate as a result of additional
risk adjustments.
The base assessment rates for small institutions in Risk Category I are
based on a combination of financial ratios and CAMELS component
ratings (the financial ratios method).
As required by Dodd-Frank, the calculation of risk-based assessment rates for large institutions no longer relies on long-term 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 long-term
unsecured debt issued by another insured depository institution, a
50 basis point charge is applied to the amount of such debt held in

excess of 3 percent of an institution’s Tier 1 capital. (3) Brokered
Deposit Adjustment: Rates for 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:
Total Base Assessment Rates*
Risk
Category
I

Risk
Category
II

Risk
Category
III

Risk
Large and
Category Highly Complex
IV
Institutions

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.
Risk-weighted assets – assets adjusted for risk-based capital definitions which include on-balance-sheet as well as off-­balance-sheet
items multiplied by risk-weights that range from zero to 200 percent.
A conversion factor is used to assign a balance sheet equivalent
amount for selected off-balance-sheet accounts.
Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-­maturity,”

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which are reported at amortized cost (book value), and securities designated as “available-for-sale,” reported at fair (market) value.
Securities gains (losses) – realized gains (losses) on held-to-­
maturity and available-for-sale securities, before adjustments for
income taxes. Thrift Financial Report (TFR) filers also include gains
(losses) on the sales of assets held for sale. (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.
Qualifying Subchapter S corporations and mutual institutions issue
unsecured subordinated debentures to the Treasury Department
through the SBLF. Depository institutions that issued these

36 FDIC QUARTERLY

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.