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Quarterly Banking Profile

Second Quarter 2009

INSURED INSTITUTION PERFORMANCE
■ Higher Loss Provisions Lead to a $3.7 Billion Net Loss
■ More Than One in Four Institutions Are Unprofitable
■ Charge-Offs and Noncurrent Loans Continue to Rise
■ Net Interest Margins Show Modest Improvement
■ Industry Assets Decline by $238 Billion

The Industry Posts a Net Loss for the Quarter

Noninterest Income Grows 10.6 Percent
Year-Over-Year

Burdened by costs associated with rising levels of troubled loans and falling asset values, FDIC-insured
commercial banks and savings institutions reported an
aggregate net loss of $3.7 billion in the second quarter
of 2009. Increased expenses for bad loans were chiefly
responsible for the industry’s loss. Insured institutions
added $66.9 billion in loan-loss provisions to their
reserves during the quarter, an increase of $16.5 billion
(32.8 percent) compared to the second quarter of 2008.
Quarterly earnings were also adversely affected by
­writedowns of asset-backed commercial paper, and by
higher assessments for deposit insurance. Almost two
out of every three institutions (64.4 percent) reported
lower quarterly earnings than a year ago, and more than
one in four (28.3 percent) reported a net loss for the
quarter. A year ago, the industry reported a quarterly
profit of $4.7 billion, and fewer than one in five insti­
tutions (18 percent) were unprofitable. The average
return on assets (ROA) was -0.11 percent, compared to
0.14 percent in the second quarter of 2008.

In addition to the $16.5-billion increase in loss provisions, the industry reported a $3.3 billion increase in
extraordinary losses and a $1.7 billion (1.7 percent)
year-over-year increase in noninterest expenses. The
extraordinary losses stemmed from asset-backed
commercial paper writedowns, while the increased
noninterest expenses primarily reflected higher deposit
insurance assessments. These negative factors were
partially offset by higher noninterest income (up
$6.5 billion, or 10.6 percent), increased net interest
income (up $3.4 billion, or 3.5 percent), and a
$1.5-billion reduction in realized losses on securities
and other assets. Gains on asset sales (up $4.5 billion),
increased trading revenue (up $4.5 billion), and higher
servicing fees (up $3.6 billion) were the largest contributors to the year-over-year improvement in noninterest
income.

Chart 1

Chart 2

The Industry Posted Its Second Quarterly Loss
in the Past 18 Years

Higher Loss Provisions Still Weigh Heavily
on Industry Earnings

$ Billions
60

2nd Quarter 2009 vs. 2nd Quarter 2008
($ Billions)
18

50
40
30

34.0 33.2 34.7 32.6

16

36.9 38.0 38.0 35.3 35.6 36.8

14

28.7

20

12

19.3

10

4.7 0.9

0.5

0

8
-3.7

4
2

-40

0

-37.3

1

FDIC Quarterly

2 3
2005

4

1

2 3 4
2006

1

2 3
2007

4

1

2 3
2008

4

6.5

6

Securities and Other Gains/Losses, Net
Net Operating Income

-30

1 2
2009

1

Negative
Factors

Positive Factors

10

5.5

-10
-20

16.5

3.4

3.3
1.5

1.7

Increase in Increase in
Decline in
Increase in Increase in Increase in
Net Interest Noninterest Realized Losses Loan Loss Extraordinary Noninterest
Income
Income
on Securities Provisions
Losses
Expense

2009, Volume 3, No. 3

loans were $4.6 billion (84.5 percent) higher than a
year earlier, and the annualized net charge-off rate on
credit card loans reached a record 9.95 percent in the
second quarter. Net charge-offs of real estate construction and development loans were up by $4.2 billion
(117.0 percent), and charge-offs of loans secured by
1–4 family residential properties were $4.0 billion
(41.1 percent) higher than a year ago.

Margins Improve at a Majority of Institutions
Average net interest margins (NIMs) improved slightly
from first quarter levels, as average funding costs fell
more rapidly than average asset yields. The average
margin increased to 3.48 percent from 3.39 percent in
the first quarter and 3.37 percent in the second quarter
of 2008. The consecutive-quarter improvement was
relatively broad-based: more than half (56.5 percent) of
all institutions reported higher NIMs than in the first
quarter. However, the year-over-year improvement was
concentrated among larger institutions. Only 45.3
percent of insured institutions reported year-over-year
NIM improvement. Despite the widening in margins,
net interest income growth has been limited by recent
shrinkage in earning asset portfolios. Interest-earning
assets declined by $149.6 billion during the second
quarter, following a $163.7 billion decline in the
first quarter. In the 12 months ended June 30, the
industry’s earning assets increased by only $18.3 billion
(0.2 percent).

Noncurrent Loan Rate Rises to Record Level
The amount of loans and leases that were noncurrent
(90 days or more past due or in nonaccrual status)
increased for a 13th consecutive quarter, and the
percentage of total loans and leases that were noncurrent reached a new record. Noncurrent loans and leases
increased by $41.4 billion (14.3 percent) during the
second quarter, led by 1–4 family residential mortgages
(up $15.4 billion, or 12.7 percent), real estate construction and development loans (up $10.2 billion, or 16.6
percent), and loans secured by nonfarm nonresidential
real estate properties (up $7.1 billion, or 29.2 percent).
Noncurrent home equity loans and junior lien mortgages fell for the first time in three years, declining by
$1.7 billion and $1.5 billion, respectively. Noncurrent
levels rose in all other major loan categories. Although
the increase in total noncurrent loans was almost onethird smaller than the $59.7 billion increase in the first
quarter, the average noncurrent rate on all loans and
leases rose from 3.76 percent to 4.35 percent. This is
the highest level for the noncurrent rate in the 26 years
that insured institutions have reported noncurrent loan
data. On a more positive note, loans that were 30–89
days past due declined by $16.7 billion (10.6 percent).

Net Charge-Off Rate Sets a Quarterly Record
Net charge-offs continued to rise, propelling the quarterly net charge-off rate to a record high. Insured institutions charged-off $48.9 billion in the second quarter,
compared to $26.4 billion a year earlier. The annualized
net charge-off rate in the second quarter was 2.55
percent, eclipsing the previous quarterly record of 1.95
percent reached in the fourth quarter of 2008. The
$22.5 billion (85.3 percent) year-over-year increase in
net charge-offs was led by loans to commercial and
industrial (C&I) borrowers, which increased by $5.3
billion (165.0 percent). Net charge-offs of credit card

Chart 3

Chart 4
Provision Expenses Have Been Growing
in Significance for Two Years

Margins Improved Slightly in the Second Quarter
Quarterly Net Interest Margin
(Percent)
4.5

Loan Loss Provisions
(Percent of Quarterly Net Operating Revenue*)
60
50

Assets < $1 Billion

4.0
40%

40

3.60%
3.5

30

3.47%
20
3.0
10
0

Assets > $1 Billion

2001

2002

2003

2004

2005

2006

2007

2008

2.5

2009

* Net operating revenue equals net interest income plus total noninterest income

FDIC Quarterly

2

1

2 3
2005

4

1

2 3
2006

4

1

2 3
2007

4

1

2 3
2008

4

1

2
2009

2009, Volume 3, No. 3

Quarterly Banking Profile
This is the largest quarterly decline in dollar terms in
the 26 years that these data have been reported, and
the largest percentage decline since the first quarter of
2004, when 30–89 day past due loans were one-third
the current level. The decline in past due loans
occurred across all major loan categories, but real estate
loans accounted for 83.5 percent ($13.9 billion) of the
total improvement. Restructured loans and leases that
were in compliance with their modified terms increased
by $13.7 billion (41.6 percent) at commercial and
savings banks that file Call reports, as restructured 1–4
family residential real estate loans rose by $10.2 billion
(55.4 percent).

from 8.02 percent to 8.25 percent, while the total riskbased capital ratio rose from 13.42 percent to 13.76
percent. However, fewer than half of all institutions
reported increases in their regulatory capital ratios.
Only 43.2 percent reported increased leverage capital
ratios, and 47.0 percent had increased total risk-based
capital ratios. Insured institutions paid $6.2 billion in
dividends in the quarter, about two-thirds less than the
$17.7 billion in dividends paid in the second quarter
of 2008.

Industry Assets Decline for a Second
Consecutive Quarter
Total assets declined by $238.1 billion (1.8 percent),
following a $303.2-billion decline in the first quarter.
Loans and leases accounted for more than half of the
decline ($125.5 billion, or 52.7 percent of the total),
while the industry’s balances at Federal Reserve banks
fell by $99.4 billion (a 20.4 percent decline). As was
the case in the first quarter, much of the decline in
industry assets was concentrated at a few large institutions. More than 57 percent of institutions increased
their assets during the second quarter, and a similar
majority increased their loan balances. Among the loan
categories registering the largest declines during the
quarter were C&I loans (down $67.7 billion, or 4.7
percent), 1–4 family residential mortgage loans (down
$33.2 billion, or 1.6 percent), and real estate construction and development loans (down $31.0 billion, or
5.5 percent). Assets in trading accounts declined by
$65.5 billion (7.9 percent). The industry’s total securities holdings increased by $130.6 billion (5.9 percent).

Institutions Continue to Add to Reserves
The industry’s reserves for loan losses increased by
$16.8 billion (8.6 percent) during the second quarter,
as loss provisions of $66.9 billion exceeded net chargeoffs of $48.9 billion. The ratio of reserves to total loans
and leases set another new record, rising from 2.51
percent to 2.77 percent. However, the pace of reserve
building fell short of the rise in noncurrent loans, and
the industry’s ratio of reserves to noncurrent loans fell
from 66.8 percent to 63.5 percent, the lowest level
since the third quarter of 1991.

Overall Capital Levels Register Improvement
Equity capital increased by $32.5 billion (2.4 percent),
raising the industry’s equity-to-assets ratio from 10.13
percent to 10.56 percent, the highest level since
March 31, 2007. Average regulatory capital ratios
increased as well. The leverage capital ratio increased

Chart 5

Chart 6

Troubled Loans Increased at a Slower Rate
in the Second Quarter

$ Billions
350

$ Billions
110

Noncurrent Loan Growth Is Outpacing
Growth in Reserves
Coverage Ratio (Percent)

Percent
180
160

300

90

Quarterly Change in Noncurrent Loans
Quarterly Net Charge-Offs

70

140

250

120

200
50

150

30

80

Loan-Loss Reserves ($ Billions)

60

100

10
-10

100

50
1

FDIC Quarterly

2
3
2006

4

1

2
3
2007

4

1

2
3
2008

4

0

1
2
2009

3

40
20

Noncurrent Loans ($ Billions)
1

2 3
2006

4

1

2 3
2007

4

1

2 3
2008

4

1 2
2009

0

2009, Volume 3, No. 3

(4.9 percent), and deposits in interest-bearing accounts
fell by $16.9 billion. Nondeposit liabilities declined by
$337.3 billion (10.6 percent), as trading liabilities fell
by $85.0 billion (23.7 percent), and FHLB advances
dropped by $62.2 billion (8.9 percent). At the end of
June, deposits funded 67.8 percent of the industry’s
assets, the highest proportion since March 1998.

Small Business Loan Balances Declined Over the
Past 12 Months
Annual data on loans to small businesses and farms
indicate that the industry’s balances of these loans
experienced shrinkage during the 12 months ended
June 30 while loans to larger borrowers had a slight
increase. Small C&I, agricultural, and nonresidential
real estate loans1 declined by $14.8 billion (1.9 percent)
between June 30, 2008, and June 30, 2009, compared to
an increase of $2.2 billion (0.1 percent) in larger business and farm loans.

“Problem List” Expands to 15-Year High
The number of insured commercial banks and savings
institutions reporting financial results fell to 8,195 in
the quarter, down from 8,247 reporters in the first quarter. Thirty-nine institutions were merged into other
institutions during the quarter, 24 institutions failed,
and there were 12 new charters added. During the quarter, the number of institutions on the FDIC’s “Problem
List” increased from 305 to 416, and the combined
assets of “problem” institutions rose from $220.0 billion
to $299.8 billion. This is the largest number of “problem” institutions since June 30, 1994, and the largest
amount of assets on the list since December 31, 1993.

Institutions Reduce Their Reliance on Nondeposit
Funding Sources
In contrast to the decline in industry assets, total deposits of insured institutions increased by $66.7 billion (0.7
percent). Deposits in foreign offices accounted for more
than three quarters ($51.0 billion, or 76.5 percent) of
the increase in deposits. Domestic office deposits
increased by only $15.7 billion (0.2 percent), as deposits in large denomination (> $250,000) non-interestbearing transaction accounts increased by $42.0 billion

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

C&I loans with original amounts of $1 million or less, loans secured
by nonfarm nonresidential real estate with original amounts of $1
million or less, real estate loans secured by farmland with original
amounts of $500 thousand or less, and agricultural production loans
with original amounts of $500 thousand or less.
1

Chart 7

Chart 8

Quarterly Percent Change in Total Loans and Leases

The Number of “Problem” Institutions
Is at a 15-Year High

All FDIC-Insured Institutions
(Percent)
5
4

Number of Insured Institutions on the FDIC’s “Problem List”
450

Recessions

350

3

305

300

2

252

250

1

200

0

150

-1

100
50

-2

0

-3
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

FDIC Quarterly

416

400

4

171

48

50

1

2
3
2006

47

65

50

53

61

4

1

2
3
2007

76

4

90

1

117

2
3
2008

4

1

2
2009

2009, Volume 3, No. 3

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

2009**
0.04
0.38
8.25
2.77
2.24
0.01
3.43
-74.96
8,195
6,995
1,200
26.94
416
$300
24
0

2008**
0.36
3.55
7.89
1.40
1.16
8.47
3.35
-65.31
8,451
7,203
1,248
16.99
117
$78
4
0

2008
0.04
0.37
7.47
1.89
1.29
6.20
3.18
-90.42
8,305
7,086
1,219
24.67
252
$159
25
5

2007
0.81
7.75
7.97
0.95
0.59
9.89
3.29
-27.58
8,534
7,283
1,251
12.08
76
$22
3
0

2006
1.28
12.30
8.22
0.54
0.39
9.04
3.31
8.53
8,680
7,401
1,279
7.94
50
$8
0
0

2005
1.28
12.43
8.25
0.50
0.49
7.63
3.47
11.39
8,833
7,526
1,307
6.22
52
$7
0
0

2004
1.28
13.20
8.11
0.53
0.56
11.37
3.52
3.99
8,976
7,631
1,345
5.97
80
$28
4
0

* Excludes insured branches of foreign banks (IBAs)
** Through June 30, ratios annualized where appropriate. Asset growth rates are for 12 months ending June 30.

TABLE II-A. Aggregate Condition and Income Data, All FDIC-Insured Institutions
2nd Quarter
2009
8,195
2,092,896

1st Quarter
2009
8,247
2,114,672

2nd Quarter
2008
8,451
2,203,854

%Change
08Q2-09Q2
-3.0
-5.0

$13,301,455
4,651,381
2,012,095
1,086,525
535,760
672,882
1,364,911
1,037,110
398,233
58,350
516,334
2,903
7,625,183
210,973
7,414,210
2,336,756
33,963
431,459
3,085,068

$13,539,556
4,700,666
2,045,299
1,076,902
566,721
674,196
1,432,578
1,046,382
403,071
56,136
500,616
2,480
7,733,899
194,211
7,539,687
2,206,202
29,707
415,140
3,348,819

$13,300,518
4,794,433
2,154,127
1,019,215
626,520
646,905
1,489,931
1,069,473
396,041
58,426
586,289
2,515
7,996,037
144,412
7,851,624
2,017,365
18,901
481,432
2,931,196

0.0
-3.0
-6.6
6.6
-14.5
4.0
-8.4
-3.0
0.6
-0.1
-11.9
15.4
-4.6
46.1
-5.6
15.8
79.7
-10.4
5.2

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

13,301,455
9,020,606
7,554,674
1,465,932
2,162,917
168,126
527,613
1,422,192

13,539,556
8,953,913
7,538,992
1,414,921
2,417,352
170,929
607,637
1,389,725

13,300,518
8,572,675
7,029,143
1,543,532
2,597,860
185,078
593,682
1,351,224

0.0
5.2
7.5
-5.0
-16.7
-9.2
-11.1
5.3

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***����������������������������������������������������������������������������������

141,216
332,040
46,516
1,365,603
11,459,081
634,488
6,307,212
17,502,519
1,865,634
204,956,755

157,920
290,619
32,853
1,313,146
11,608,632
696,696
6,620,592
16,271,324
1,884,227
203,388,080

110,799
166,067
18,865
1,322,214
11,440,781
840,543
8,147,556
21,409,065
1,747,262
183,302,532

27.5
99.9
146.6
3.3
0.2
-24.5
-22.6
-18.2
6.8
11.8

(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��������������������������������������������������������������
Net income����������������������������������������������������������������������������
Net charge-offs����������������������������������������������������������������������������
Cash dividends����������������������������������������������������������������������������
Retained earnings�����������������������������������������������������������������������
Net operating income�����������������������������������������������������������

First Half
2009
$280,368
81,460
198,907
127,731
136,118
196,675
884
4,819
-3,654
2,613
86,464
13,483
-10,871
6,244

First Half
2008
$343,169
152,034
191,136
87,580
121,485
188,419
-1,084
11,027
-498
24,012
46,012
31,718
-7,706
24,939

*** Call Report filers only.

FDIC Quarterly

%Change
-18.3
-46.4
4.1
45.8
12.1
4.4
N/M
-56.3
N/M
-89.1
87.9
-57.5
N/M
-75.0

2nd Quarter
2009
$138,698
38,741
99,957
66,876
67,454
99,379
-796
292
-3,625
-3,712
48,897
6,246
-9,958
424

2nd Quarter
2008
$164,881
68,305
96,576
50,371
60,991
97,708
-2,309
2,063
-366
4,750
26,386
17,747
-12,998
6,091

%Change
08Q2-09Q2
-15.9
-43.3
3.5
32.8
10.6
1.7
N/M
-85.9
N/M
N/M
85.3
-64.8
N/M
-93.0

N/M - Not Meaningful.

5

2009, Volume 3, No. 3

TABLE III-A. Second Quarter 2009, All FDIC-Insured Institutions
Asset Concentration Groups*
Second quarter
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������
8,195
Commercial banks�������������������������������������
6,995
Savings institutions�����������������������������������
1,200
Total assets (in billions)������������������������������������
$13,301.5
Commercial banks�������������������������������������
11,895.1
Savings institutions�����������������������������������
1,406.4
Total deposits (in billions)���������������������������������
9,020.6
Commercial banks�������������������������������������
8,077.2
Savings institutions�����������������������������������
943.4
Net income (in millions)������������������������������������
-3,712
Commercial banks�������������������������������������
-3,694
Savings institutions�����������������������������������
-18
Performance Ratios (annualized, %)
Yield on earning assets������������������������������������
Cost of funding earning assets������������������������
Net interest margin������������������������������������
Noninterest income to assets���������������������������
Noninterest expense to assets�������������������������
Loan and lease loss provision to assets����������
Net operating income to assets�����������������������
Pretax return on assets������������������������������������
Return on assets�����������������������������������������������
Return on equity�����������������������������������������������
Net charge-offs to loans and leases����������������
Loan and lease loss provision to
net charge-offs������������������������������������������
Efficiency ratio��������������������������������������������������
% of unprofitable institutions����������������������������
% of institutions with earnings gains����������������

Credit
Card
International Agricultural Commercial
Banks
Banks
Banks
Lenders
24
5
1,551
4,637
20
5
1,546
4,150
4
0
5
487
$484.8
$3,204.0
$170.1
$5,947.3
462.5
3,204.0
169.7
5,447.0
22.3
0.0
0.5
500.2
163.7
1,996.8
137.5
4,400.5
151.1
1,996.8
137.1
4,058.4
12.5
0.0
0.4
342.1
-873
-4,296
336
-2,429
-1,087
-4,296
337
-1,786
214
0
-1
-643

Mortgage Consumer
Lenders
Lenders
809
81
223
64
586
17
$933.2
$86.3
241.0
43.5
692.2
42.7
554.6
71.5
101.0
34.0
453.6
37.5
1,299
119
893
56
406
63

Other
Specialized
All Other
<$1 Billion
<$1 Billion
294
742
262
685
32
57
$36.0
$101.7
30.4
88.2
5.6
13.5
27.3
83.7
23.8
73.0
3.5
10.7
110
188
64
186
46
2

All Other
>$1 Billion
52
40
12
$2,338.1
2,208.7
129.3
1,585.1
1,501.9
83.2
1,833
1,939
-105

4.83
1.35
3.48
2.01
2.96
1.99
0.01
-0.10
-0.11
-1.07
2.55

11.83
1.39
10.44
4.84
5.86
8.69
-0.92
-1.08
-0.73
-3.03
10.78

3.92
0.99
2.93
1.78
2.73
1.76
-0.10
-0.71
-0.54
-6.36
3.07

5.69
1.79
3.90
0.64
2.84
0.50
0.76
0.93
0.79
7.14
0.60

5.08
1.48
3.60
1.87
3.28
1.86
-0.16
-0.13
-0.16
-1.56
2.04

5.13
1.89
3.24
0.97
1.95
1.12
0.57
0.90
0.56
6.13
1.27

5.84
1.74
4.10
3.14
3.16
2.52
0.56
1.32
0.57
6.07
2.85

3.87
1.18
2.68
8.03
8.49
0.18
1.20
1.82
1.21
7.51
0.71

5.42
1.68
3.74
0.89
3.07
0.33
0.76
0.90
0.75
6.55
0.49

3.78
1.18
2.61
2.52
2.22
1.82
0.43
0.38
0.30
2.91
2.30

136.77

111.26

151.96

127.12

131.55

134.42

111.19

103.31

119.29

172.40

57.07
28.30
34.72

41.06
41.67
29.17

63.68
40.00
40.00

65.68
11.48
38.68

61.91
37.57
31.16

48.56
21.76
45.36

44.73
16.05
40.74

80.75
22.79
34.35

70.72
15.50
36.66

46.81
30.77
34.62

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

12
39
24

0
0
0

0
0
0

1
2
1

2
33
20

0
1
1

0
0
0

7
0
0

0
2
2

2
1
0

PRIOR Second quarterS
(The way it was...)
Return on assets (%)������������������������������� 2008
������������������������������������� 2006
������������������������������������� 2004

0.14
1.34
1.31

2.39
4.64
4.08

0.26
1.01
0.68

1.17
1.31
1.27

0.24
1.33
1.36

-1.46
1.07
1.21

0.82
1.79
1.54

1.82
2.76
1.28

0.99
1.02
1.10

0.12
1.29
1.33

Net charge-offs to loans & leases (%)���� 2008
������������������������������������� 2006
������������������������������������� 2004

1.32
0.35
0.58

5.87
3.43
5.08

1.27
0.59
0.99

0.26
0.17
0.18

1.00
0.17
0.32

1.82
0.13
0.11

1.75
0.92
1.15

0.66
0.56
0.41

0.29
0.18
0.29

0.94
0.19
0.31

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

FDIC Quarterly

6

2009, Volume 3, No. 3

Quarterly Banking Profile
TABLE III-A. Second Quarter 2009, All FDIC-Insured Institutions
Asset Size Distribution
Second Quarter
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������������
8,195
Commercial banks�������������������������������������������
6,995
Savings institutions�����������������������������������������
1,200
Total assets (in billions)������������������������������������������
$13,301.5
Commercial banks�������������������������������������������
11,895.1
Savings institutions�����������������������������������������
1,406.4
Total deposits (in billions)���������������������������������������
9,020.6
Commercial banks�������������������������������������������
8,077.2
Savings institutions�����������������������������������������
943.4
Net income (in millions)������������������������������������������
-3,712
Commercial banks�������������������������������������������
-3,694
Savings institutions�����������������������������������������
-18

Geographic Regions*

Less than
$100
$1 Billion
Greater
$100
Million to
to
than
Million
$1 Billion $10 Billion $10 Billion New York
3,010
4,487
582
116
996
2,682
3,780
445
88
524
328
707
137
28
472
$165.1
$1,348.6
$1,501.3 $10,286.5
$2,458.4
147.8
1,101.1
1,158.0
9,488.3
1,749.0
17.4
247.5
343.3
798.2
709.4
136.3
1,090.2
1,119.4
6,674.7
1,514.1
122.9
900.8
863.7
6,189.9
1,022.0
13.4
189.4
255.7
484.8
492.0
29
-266
-2,800
-675
-3,331
4
-155
-2,741
-801
-3,530
25
-110
-59
126
199

Atlanta
1,164
1,025
139
$3,495.1
3,345.2
149.9
2,505.6
2,395.0
110.5
-413
-200
-212

Chicago
1,685
1,387
298
$3,124.3
2,975.8
148.5
2,059.2
1,951.1
108.1
1,532
1,779
-247

Kansas
City
1,914
1,812
102
$1,063.1
1,014.9
48.2
783.3
747.7
35.6
2,019
2,036
-17

San
Dallas
Francisco
1,680
756
1,558
689
122
67
$777.5
$2,383.0
651.5
2,158.8
126.0
224.3
587.1
1,571.3
503.8
1,457.6
83.3
113.7
494
-4,013
528
-4,305
-34
293

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����������������������

4.83
1.35
3.48
2.01
2.96
1.99
0.01
-0.10
-0.11
-1.07
2.55
136.77
57.07
28.30
34.72

5.64
1.81
3.82
1.28
3.88
0.70
0.06
0.19
0.07
0.55
0.89
125.49
80.91
27.14
39.80

5.54
1.97
3.57
1.00
3.31
1.04
-0.08
-0.07
-0.08
-0.79
1.10
135.64
75.89
27.75
32.34

5.18
1.84
3.34
1.34
3.31
1.87
-0.75
-0.81
-0.75
-7.02
2.17
126.39
68.28
34.88
28.01

4.66
1.18
3.49
2.25
2.86
2.16
0.13
-0.01
-0.03
-0.25
2.89
138.33
53.35
46.55
28.45

5.22
1.50
3.73
1.86
2.93
1.92
0.10
-0.48
-0.54
-4.34
2.90
122.59
55.43
28.41
34.94

4.58
1.33
3.25
2.22
2.77
2.08
0.02
-0.05
-0.05
-0.44
2.25
154.45
53.22
52.92
24.57

4.20
1.19
3.01
2.29
2.98
1.68
0.12
0.33
0.19
2.30
2.38
136.69
59.67
23.03
38.16

5.65
1.14
4.51
3.30
4.11
1.69
0.89
1.24
0.76
7.33
2.54
100.00
55.33
19.28
35.84

5.08
1.49
3.60
1.52
3.31
1.21
0.19
0.30
0.25
2.56
1.32
140.83
67.17
17.14
38.81

5.18
1.48
3.69
1.08
2.63
2.76
-0.69
-1.09
-0.68
-6.42
3.36
144.33
59.43
49.60
30.42

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

12
39
24

10
12
3

0
22
17

1
4
3

1
1
1

0
9
1

6
7
8

2
6
4

0
9
3

3
7
1

1
1
7

PRIOR Second quarters
(The way it was…)
Return on assets (%)������������������������������������� 2008
������������������������������������������� 2006
������������������������������������������� 2004

0.14
1.34
1.31

0.57
1.02
0.98

0.53
1.26
1.17

0.25
1.34
1.46

0.07
1.36
1.32

0.76
1.28
1.08

0.16
1.32
1.40

0.11
1.09
1.36

0.91
1.63
1.53

0.59
1.29
1.31

-0.79
1.78
1.59

Net charge-offs to loans & leases (%)���������� 2008
������������������������������������������� 2006
������������������������������������������� 2004

1.32
0.35
0.58

0.30
0.15
0.23

0.47
0.15
0.23

1.00
0.20
0.45

1.53
0.42
0.68

1.30
0.56
0.85

1.14
0.15
0.32

1.27
0.23
0.41

1.31
0.37
0.76

0.65
0.22
0.39

1.80
0.54
0.61

* See Table IV-A (page 9) for explanations.

FDIC Quarterly

7

2009, Volume 3, No. 3

TABLE IV-A. First Half 2009, All FDIC-Insured Institutions
Asset Concentration Groups*
First half
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������������������������
8,195
Commercial banks�������������������������������������������������������
6,995
Savings institutions�����������������������������������������������������
1,200
Total assets (in billions)������������������������������������������������������
$13,301.5
Commercial banks�������������������������������������������������������
11,895.1
Savings institutions�����������������������������������������������������
1,406.4
Total deposits (in billions)���������������������������������������������������
9,020.6
Commercial banks�������������������������������������������������������
8,077.2
Savings institutions�����������������������������������������������������
943.4
Net income (in millions)������������������������������������������������������
2,613
Commercial banks�������������������������������������������������������
4,513
Savings institutions�����������������������������������������������������
-1,901
Performance Ratios (annualized, %)
Yield on earning assets������������������������������������������������������
Cost of funding earning assets������������������������������������������
Net interest margin������������������������������������������������������
Noninterest income to assets���������������������������������������������
Noninterest expense to assets�������������������������������������������
Loan and lease loss provision to assets����������������������������
Net operating income to assets�����������������������������������������
Pretax return on assets������������������������������������������������������
Return on assets�����������������������������������������������������������������
Return on equity�����������������������������������������������������������������
Net charge-offs to loans and leases����������������������������������
Loan and lease loss provision to net charge-offs�������������
Efficiency ratio��������������������������������������������������������������������
% of unprofitable institutions����������������������������������������������
% of institutions with earnings gains����������������������������������

Credit
Other
Card International Agricultural Commercial Mortgage Consumer Specialized All Other All Other
Banks
Banks
Banks
Lenders
Lenders
Lenders
<$1 Billion <$1 Billion >$1 Billion
24
5
1,551
4,637
809
81
294
742
52
20
5
1,546
4,150
223
64
262
685
40
4
0
5
487
586
17
32
57
12
$484.8
$3,204.0
$170.1
$5,947.3
$933.2
$86.3
$36.0
$101.7
$2,338.1
462.5
3,204.0
169.7
5,447.0
241.0
43.5
30.4
88.2
2,208.7
22.3
0.0
0.5
500.2
692.2
42.7
5.6
13.5
129.3
163.7
1,996.8
137.5
4,400.5
554.6
71.5
27.3
83.7
1,585.1
151.1
1,996.8
137.1
4,058.4
101.0
34.0
23.8
73.0
1,501.9
12.5
0.0
0.4
342.1
453.6
37.5
3.5
10.7
83.2
-2,538
774
750
-4,918
2,599
75
124
409
5,338
-2,973
774
750
-1,549
1,262
-3
45
403
5,804
436
0
0
-3,369
1,338
78
78
5
-467

4.84
1.41
3.43
2.01
2.90
1.89
0.09
0.11
0.04
0.38
2.24
147.73
55.35
26.94
35.06

11.75
1.39
10.35
5.38
5.87
9.68
-1.19
-1.62
-1.04
-4.55
9.57
138.13
39.63
54.17
16.67

3.98
1.03
2.95
2.05
2.60
1.62
0.27
0.05
0.05
0.60
2.73
156.76
57.17
40.00
40.00

5.72
1.85
3.87
0.63
2.73
0.44
0.86
1.04
0.89
8.02
0.47
142.88
64.29
10.19
39.97

5.11
1.54
3.57
1.76
3.26
1.67
-0.11
-0.11
-0.16
-1.60
1.74
138.53
60.90
36.45
29.35

5.19
2.02
3.17
0.99
1.88
1.18
0.52
0.92
0.57
6.41
1.13
158.05
47.60
20.77
54.88

5.84
1.67
4.17
2.48
3.01
2.89
0.18
0.51
0.19
1.99
2.74
132.04
46.47
12.35
46.91

4.02
1.25
2.77
8.01
9.14
0.20
0.67
1.19
0.68
4.18
0.81
98.67
80.51
19.05
36.05

5.49
1.74
3.75
0.87
3.02
0.30
0.80
1.00
0.82
7.16
0.42
129.54
69.75
13.07
37.87

3.67
1.24
2.43
2.30
2.13
1.64
0.35
0.63
0.43
4.34
2.04
176.40
48.39
26.92
32.69

86.15

80.15

83.77

91.89

87.66

92.62

93.66

89.74

91.85

83.23

2.77
63.54

9.01
264.41

3.82
67.63

1.39
79.22

2.24
53.30

1.45
34.89

3.00
203.44

1.42
60.53

1.30
73.77

2.54
56.43

2.77
10.56
8.25
11.05
13.76
82.19
55.74
56.80

2.45
24.51
18.26
12.68
14.73
194.39
65.62
31.68

2.25
8.42
7.03
11.38
14.72
57.57
35.88
30.33

1.45
11.08
10.01
13.59
14.69
80.79
65.28
80.80

3.36
10.55
8.18
9.96
12.56
91.62
67.79
70.64

3.00
9.47
8.93
17.14
18.14
107.61
63.95
59.36

1.23
9.96
9.61
12.39
14.31
93.75
77.68
81.20

0.72
16.58
14.19
33.93
34.69
31.10
23.53
73.49

1.30
11.37
11.00
18.01
19.16
67.13
55.29
82.32

2.23
10.91
7.54
10.73
13.95
67.84
45.99
58.03

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

25
89
45

0
0
0

0
0
0

1
6
3

5
75
38

1
2
2

0
0
0

15
1
0

1
4
2

2
1
0

PRIOR First halves
(The way it was…)
Number of institutions������������������������������������������������2008
��������������������������������������������������������2006
��������������������������������������������������������2004

8,451
8,777
9,078

27
29
36

6
5
6

1,585
1,681
1,775

4,788
4,708
4,350

844
861
997

98
123
144

306
404
488

754
910
1,195

43
56
87

Total assets (in billions)����������������������������������������������2008
��������������������������������������������������������2006
��������������������������������������������������������2004

$13,300.5
11,526.1
9,648.5

$450.1
376.8
334.4

$2,980.5
2,097.8
1,554.5

$165.7
146.6
135.7

$5,362.5
4,552.3
3,031.1

$1,376.1
1,765.2
1,402.0

$71.3
97.5
160.7

$32.8
45.3
57.1

$98.8
117.1
155.6

$2,762.6
2,327.6
2,817.4

Return on assets (%)��������������������������������������������������2008
��������������������������������������������������������2006
��������������������������������������������������������2004

0.36
1.34
1.33

3.49
4.58
3.97

0.31
1.08
0.89

1.18
1.29
1.26

0.51
1.33
1.35

-0.84
1.06
1.22

1.04
2.00
1.58

2.28
0.88
1.36

1.01
1.02
1.10

0.12
1.27
1.29

Net charge-offs to loans & leases (%)�����������������������2008
��������������������������������������������������������2006
��������������������������������������������������������2004

1.16
0.34
0.60

5.38
3.14
5.03

1.20
0.55
1.13

0.21
0.14
0.15

0.86
0.17
0.32

1.48
0.12
0.12

1.72
0.94
1.29

0.46
0.74
0.50

0.22
0.15
0.27

0.78
0.19
0.29

Noncurrent plus OREO to assets (%)������������������������2008
��������������������������������������������������������2006
��������������������������������������������������������2004

1.40
0.47
0.60

1.67
1.28
1.33

0.86
0.40
0.75

1.06
0.68
0.80

1.67
0.47
0.59

2.56
0.54
0.58

0.80
0.60
0.79

0.27
0.21
0.30

0.79
0.53
0.64

0.90
0.36
0.43

Equity capital ratio (%)�����������������������������������������������2008
��������������������������������������������������������2006
��������������������������������������������������������2004

10.16
10.27
9.50

21.98
27.09
18.01

7.86
8.05
7.18

10.94
10.73
10.52

11.31
10.20
9.35

7.90
10.64
8.65

9.39
9.92
7.99

20.93
21.35
16.25

11.16
10.79
10.38

9.42
9.14
10.23

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

* 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 their total loans and leases.
Commercial Lenders - Institutions whose commercial and industrial loans, plus real estate construction and development loans, plus loans secured by commercial real estate properties
exceed 25 percent of total assets.
Mortgage Lenders - Institutions whose residential mortgage loans, plus mortgage-backed securities, exceed 50 percent of total assets.
Consumer Lenders - Institutions whose residential mortgage loans, plus credit-card loans, plus other loans to individuals, exceed 50 percent of total assets.
Other Specialized < $1 Billion - Institutions with assets less than $1 billion, whose loans and leases are less than 40 percent of total assets.
All Other < $1 billion - Institutions with assets less than $1 billion that do not meet any of the definitions above, they have significant lending activity with no identified asset concentrations.
All Other > $1 billion - Institutions with assets greater than $1 billion that do not meet any of the definitions above, they have significant lending activity with no identified asset
concentrations.

FDIC Quarterly

8

2009, Volume 3, No. 3

Quarterly Banking Profile
TABLE IV-A. First Half 2009, All FDIC-Insured Institutions
Asset Size Distribution
First half
All Insured Less than
(The way it is...)
Institutions $100 Million
Number of institutions reporting���������������������
8,195
3,010
Commercial banks�����������������������������������
6,995
2,682
Savings institutions���������������������������������
1,200
328
Total assets (in billions)����������������������������������
$13,301.5
$165.1
Commercial banks�����������������������������������
11,895.1
147.8
Savings institutions���������������������������������
1,406.4
17.4
Total deposits (in billions)�������������������������������
9,020.6
136.3
Commercial banks�����������������������������������
8,077.2
122.9
Savings institutions���������������������������������
943.4
13.4
Net income (in millions)����������������������������������
2,613
139
Commercial banks�����������������������������������
4,513
96
Savings institutions���������������������������������
-1,901
43
Performance Ratios (annualized, %)
Yield on earning assets����������������������������������
Cost of funding earning assets����������������������
Net interest margin����������������������������������
Noninterest income to assets�������������������������
Noninterest expense to assets�����������������������
Loan and lease loss provision to assets��������
Net operating income to assets���������������������
Pretax return on assets����������������������������������
Return on assets���������������������������������������������
Return on equity���������������������������������������������
Net charge-offs to loans and leases��������������
Loan and lease loss provision to net
charge-offs����������������������������������������������
Efficiency ratio������������������������������������������������
% of unprofitable institutions��������������������������
% of institutions with earnings gains��������������

Geographic Regions*

$100 Million $1 Billion
Greater
to
to
than
$1 Billion
$10 Billion $10 Billion New York
4,487
582
116
996
3,780
445
88
524
707
137
28
472
$1,348.6
$1,501.3
$10,286.5
$2,458.4
1,101.1
1,158.0
9,488.3
1,749.0
247.5
343.3
798.2
709.4
1,090.2
1,119.4
6,674.7
1,514.1
900.8
863.7
6,189.9
1,022.0
189.4
255.7
484.8
492.0
694
-3,420
5,199
-2,975
721
-3,033
6,729
-2,631
-27
-387
-1,530
-344

Atlanta
Chicago
1,164
1,685
1,025
1,387
139
298
$3,495.1
$3,124.3
3,345.2
2,975.8
149.9
148.5
2,505.6
2,059.2
2,395.0
1,951.1
110.5
108.1
2,255
2,484
2,830
2,833
-575
-348

Kansas
City
1,914
1,812
102
$1,063.1
1,014.9
48.2
783.3
747.7
35.6
3,524
3,485
39

San
Dallas
Francisco
1,680
756
1,558
689
122
67
$777.5
$2,383.0
651.5
2,158.8
126.0
224.3
587.1
1,571.3
503.8
1,457.6
83.3
113.7
-886
-1,789
729
-2,731
-1,615
942

4.84
1.41
3.43
2.01
2.90
1.89
0.09
0.11
0.04
0.38
2.24

5.68
1.87
3.80
1.27
3.87
0.60
0.16
0.28
0.17
1.34
0.75

5.61
2.04
3.57
0.98
3.22
0.89
0.09
0.16
0.10
1.04
0.93

5.26
1.91
3.36
1.23
3.11
1.67
-0.49
-0.47
-0.46
-4.31
1.78

4.66
1.23
3.42
2.26
2.82
2.06
0.17
0.18
0.10
0.99
2.56

5.27
1.58
3.69
1.91
2.84
2.03
0.10
-0.19
-0.24
-1.98
2.55

4.46
1.38
3.08
2.04
2.68
1.81
0.05
0.23
0.12
1.21
1.97

4.29
1.25
3.05
2.20
3.02
1.61
0.09
0.28
0.16
1.87
2.00

5.64
1.18
4.46
3.19
3.97
1.94
0.76
1.04
0.66
6.59
2.34

5.14
1.57
3.57
1.47
3.40
1.06
0.14
-0.13
-0.23
-2.30
1.13

5.22
1.52
3.70
1.46
2.52
2.47
-0.16
-0.33
-0.15
-1.51
3.01

147.73

127.22

137.28

136.47

149.87

147.60

155.52

155.00

124.21

143.99

143.97

55.35
26.94
35.06

80.06
25.75
40.53

74.34
26.34
33.12

66.96
34.88
23.54

51.64
41.38
25.86

53.51
26.81
38.86

54.25
49.57
23.63

57.84
22.02
39.17

54.55
17.97
36.00

66.24
15.36
39.40

52.58
51.72
26.46

86.15

91.33

91.65

90.45

84.72

85.08

84.48

86.52

87.60

90.46

87.16

2.77
63.54

1.48
62.78

1.56
48.65

2.00
47.47

3.14
68.00

2.99
94.96

2.52
55.10

2.89
57.89

2.61
64.16

1.80
59.57

3.23
63.45

2.77
10.56
8.25
11.05
13.76
82.19
55.74
56.80

2.03
12.46
12.02
17.81
18.88
75.30
62.13
82.52

2.94
9.95
9.47
12.92
14.10
84.83
68.58
80.76

3.43
10.62
9.14
12.12
13.46
89.82
66.97
74.04

2.67
10.60
7.90
10.55
13.68
80.62
52.31
50.72

1.81
12.53
9.37
12.46
14.57
85.70
52.78
54.43

3.08
10.97
7.44
9.68
12.95
82.37
59.05
64.25

2.87
8.55
7.11
9.70
12.92
75.84
49.99
51.96

3.13
10.80
9.15
10.35
13.04
88.53
65.23
66.40

2.43
9.96
8.82
11.65
13.39
85.29
64.40
74.74

3.14
10.64
9.21
13.94
15.99
82.53
54.42
44.51

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

25
89
45

22
34
4

0
46
35

1
7
5

2
2
1

1
18
2

10
12
14

5
19
7

0
20
5

5
17
2

4
3
15

PRIOR First halves
(The way it was…)
Number of institutions��������������������������� 2008
����������������������������������� 2006
����������������������������������� 2004

8,451
8,777
9,078

3,303
3,805
4,277

4,474
4,332
4,217

558
518
468

116
122
116

1,034
1,103
1,148

1,214
1,234
1,228

1,738
1,864
1,990

1,959
2,043
2,120

1,722
1,777
1,846

784
756
746

Total assets (in billions)������������������������� 2008
����������������������������������� 2006
����������������������������������� 2004

$13,300.5
11,526.1
9,648.5

$177.0
198.6
221.4

$1,333.3
1,269.5
1,172.2

$1,464.5
1,422.7
1,293.6

$10,325.7
8,635.3
6,961.4

$2,478.5
2,952.0
3,326.1

$3,397.0
2,861.6
2,041.3

$2,937.6
2,679.3
1,701.9

$989.0
825.3
760.3

$763.8
631.4
578.1

$2,734.6
1,576.6
1,240.8

Return on assets (%)����������������������������� 2008
����������������������������������� 2006
����������������������������������� 2004

0.36
1.34
1.33

0.67
0.99
0.99

0.66
1.18
1.17

0.50
1.34
1.47

0.30
1.37
1.34

0.90
1.29
1.15

0.24
1.32
1.37

0.43
1.09
1.37

1.15
1.62
1.52

0.76
1.30
1.33

-0.41
1.75
1.58

Net charge-offs to loans & leases (%)�� 2008
����������������������������������� 2006
����������������������������������� 2004

1.16
0.34
0.60

0.25
0.13
0.20

0.38
0.13
0.23

0.85
0.19
0.41

1.35
0.40
0.72

1.23
0.51
0.86

0.95
0.15
0.34

1.06
0.23
0.42

1.24
0.36
0.82

0.55
0.19
0.36

1.59
0.53
0.63

Noncurrent plus OREO to assets (%)��� 2008
����������������������������������� 2006
����������������������������������� 2004

1.40
0.47
0.60

1.20
0.70
0.83

1.57
0.52
0.62

1.77
0.45
0.55

1.33
0.47
0.60

0.92
0.42
0.61

1.43
0.29
0.42

1.26
0.51
0.73

1.69
0.82
0.63

1.35
0.64
0.67

1.86
0.62
0.65

Equity capital ratio (%)�������������������������� 2008
����������������������������������� 2006
����������������������������������� 2004

10.16
10.27
9.50

13.35
12.51
11.49

10.27
10.22
9.90

10.96
10.90
10.49

9.98
10.12
9.19

12.05
11.03
9.65

10.06
9.49
8.32

9.20
8.92
8.56

9.73
10.62
10.28

9.86
10.14
9.49

9.84
12.41
11.91

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

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

FDIC Quarterly

9

2009, Volume 3, No. 3

TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Concentration Groups*
June 30, 2009

All Insured
Institutions

Credit
Card
Banks

International Agricultural Commercial Mortgage
Banks
Banks
Lenders
Lenders

Consumer
Lenders

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

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

2.16
2.86
1.17
1.22
1.24
2.98
0.91
2.43
2.84
2.17
0.55
1.85

1.41
0.00
0.00
0.00
1.96
1.73
4.55
3.00
2.88
3.88
0.01
2.82

3.30
2.56
0.72
0.83
1.79
4.90
0.49
2.22
3.29
1.80
0.47
2.15

1.29
3.02
1.23
1.08
0.59
1.82
1.74
2.06
2.46
2.04
0.74
1.27

1.87
2.96
1.21
1.37
0.93
2.50
0.99
2.38
2.46
2.37
0.72
1.68

2.16
3.94
1.29
1.31
1.41
2.25
0.82
1.68
3.09
1.31
0.15
2.09

1.23
2.48
1.99
0.03
1.11
1.21
1.31
2.22
1.42
2.45
0.39
1.82

1.61
2.09
0.95
1.17
0.33
2.07
1.31
1.54
1.86
1.53
0.90
1.52

1.84
1.98
1.41
2.01
1.13
2.15
1.62
2.24
1.98
2.24
0.78
1.78

2.48
1.78
0.84
0.62
1.37
3.59
0.55
1.93
2.82
1.69
0.43
1.82

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

5.64
13.45
2.88
3.13
1.73
6.79
2.79
2.20
3.56
1.35
1.52
4.35

2.13
0.00
0.00
0.00
1.84
2.81
5.05
3.67
3.56
4.45
0.02
3.41

7.76
9.01
3.20
2.39
1.82
12.07
4.83
2.81
4.63
2.10
2.52
5.64

2.11
8.76
2.49
1.76
0.76
1.43
2.18
0.95
3.40
0.81
0.78
1.75

5.43
13.76
2.77
3.52
1.31
5.94
2.20
1.33
3.11
1.01
1.12
4.21

4.39
16.30
2.80
2.35
1.94
4.42
1.53
1.24
3.66
0.61
0.30
4.16

1.46
6.16
1.43
1.21
0.72
1.98
0.60
1.61
1.64
1.60
0.13
1.46

2.88
7.50
2.09
3.01
0.47
2.87
2.56
0.68
2.30
0.61
0.83
2.34

1.98
5.74
2.39
1.97
0.88
1.57
1.86
0.79
1.40
0.77
1.04
1.76

6.49
11.98
4.24
2.19
2.64
8.16
2.55
1.03
3.07
0.48
1.70
4.50

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

1.73
4.42
0.50
0.81
2.70
1.50
2.13
5.26
8.77
2.99
1.06
2.24

1.90
0.00
0.00
0.00
0.00
2.78
14.35
9.89
9.26
14.30
0.01
9.57

2.71
1.46
0.35
0.43
3.18
3.42
2.48
4.41
7.22
3.21
1.30
2.73

0.33
2.15
0.33
0.15
0.35
0.22
1.12
0.94
8.20
0.51
0.00
0.47

1.57
4.51
0.53
0.97
1.95
1.05
1.81
3.35
9.37
2.28
1.11
1.74

1.03
5.01
0.65
0.85
3.18
0.76
1.18
3.24
9.58
1.52
0.81
1.13

1.37
2.50
0.13
0.00
1.84
0.85
4.79
3.22
5.31
2.55
1.46
2.72

0.31
1.09
0.12
0.94
0.72
0.21
0.56
2.36
13.57
0.41
1.85
0.81

0.29
0.95
0.22
0.19
0.47
0.25
0.71
0.93
4.05
0.84
0.40
0.42

2.34
4.71
0.31
0.36
3.91
1.94
1.31
2.66
7.33
1.50
1.03
2.04

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

$4,651.4
535.8
1,086.5
213.5
672.9
2,012.1
1,364.9
1,037.1
398.2
638.9
574.7
7,628.1

$0.2
0.0
0.0
0.0
0.0
0.1
30.7
282.3
247.3
35.0
36.5
349.6

$590.7
12.0
33.5
40.7
143.4
312.1
249.7
187.9
53.1
134.8
168.1
1,196.4

$65.4
4.7
18.4
1.3
1.3
17.3
15.3
6.4
0.4
6.1
25.5
112.6

$2,741.4
452.6
910.9
144.5
332.3
850.6
801.5
337.2
51.4
285.8
245.0
4,125.2

$562.4
12.8
29.6
12.2
38.4
468.4
12.7
25.8
5.3
20.4
4.8
605.7

$21.1
0.7
0.9
0.1
10.4
9.0
5.1
42.2
9.4
32.8
1.2
69.6

$5.5
0.5
1.7
0.2
0.2
2.6
1.2
1.5
0.1
1.4
0.5
8.6

$40.5
2.7
9.8
0.7
1.6
22.8
5.7
6.6
0.2
6.4
4.2
57.0

$624.2
49.7
81.6
13.7
145.3
329.2
243.1
147.3
31.0
116.3
88.8
1,103.4

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

33,963.3
13,467.7
4,837.1
1,579.6
11,486.8
173.8
2,303.5

-29.7
0.0
0.2
0.0
0.1
0.0
0.0

2,452.0
19.0
128.0
42.4
1,548.6
0.0
580.0

498.7
176.5
140.2
22.4
119.7
39.3
0.6

25,602.3
11,910.8
4,199.5
1,358.9
6,536.5
124.7
1,461.2

2,741.2
903.8
103.9
34.0
1,437.0
1.0
261.4

40.7
17.0
3.5
0.7
18.8
0.7
0.0

46.2
13.8
13.3
0.0
17.9
1.1
0.0

311.5
75.5
87.3
22.0
119.4
7.0
0.2

2,300.5
351.4
161.2
99.2
1,688.7
0.0
0.1

* See Table IV-A (page 8) for explanations.
** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.

FDIC Quarterly

10

2009, Volume 3, No. 3

Quarterly Banking Profile
TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Size Distribution
June 30, 2009

Geographic Regions*

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

Atlanta

Chicago

Kansas
City

Dallas

San
Francisco

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

2.16
2.86
1.17
1.22
1.24
2.98
0.91
2.43
2.84
2.17
0.55
1.85

1.75
2.28
1.51
1.10
0.95
2.17
1.91
2.48
3.03
2.47
0.71
1.71

1.67
2.61
1.39
1.53
0.89
1.76
1.44
2.00
2.78
1.94
0.65
1.61

1.50
2.59
1.11
1.47
0.75
1.55
1.01
2.07
1.90
2.14
0.95
1.46

2.44
3.12
1.08
1.06
1.31
3.41
0.83
2.48
2.89
2.19
0.51
1.97

1.43
2.40
1.17
0.95
0.60
1.58
1.29
2.94
3.07
2.72
0.44
1.66

2.45
2.68
1.20
1.32
1.30
3.58
0.78
2.49
2.60
2.46
0.37
2.00

2.41
3.57
1.41
1.21
1.39
3.41
0.97
2.00
2.62
1.83
0.71
1.94

1.43
2.61
1.02
0.82
1.22
1.67
1.26
2.91
2.96
2.87
0.66
1.50

1.73
2.21
0.92
1.41
0.80
2.66
0.82
1.66
1.26
1.76
0.61
1.50

2.68
3.66
1.13
1.58
1.46
3.66
0.64
2.03
2.71
1.63
0.63
2.03

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

5.64
13.45
2.88
3.13
1.73
6.79
2.79
2.20
3.56
1.35
1.52
4.35

2.69
8.00
2.69
2.54
1.11
1.95
2.51
1.11
3.06
1.08
0.87
2.36

3.64
10.79
2.38
2.89
1.08
2.42
2.10
0.89
2.42
0.77
0.88
3.20

5.10
15.24
2.53
4.08
1.03
3.38
2.31
1.17
1.72
0.98
0.72
4.21

6.32
13.84
3.33
2.88
1.84
8.13
2.95
2.36
3.67
1.44
1.65
4.61

3.41
12.15
2.91
1.93
0.74
2.95
2.70
3.23
3.93
1.98
1.09
3.14

6.25
12.99
3.21
4.43
2.27
7.44
2.15
1.38
2.72
0.96
0.91
4.58

6.80
16.61
3.55
4.01
1.62
9.35
2.56
1.44
3.24
0.95
2.12
5.00

5.89
12.55
2.49
1.91
2.01
9.80
2.06
2.13
3.02
1.40
0.62
4.07

3.82
7.40
1.64
3.15
0.59
4.80
1.64
0.71
1.34
0.55
0.96
3.03

6.13
18.88
2.58
2.46
1.32
6.76
4.98
2.67
3.97
1.92
2.90
5.08

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

1.73
4.42
0.50
0.81
2.70
1.50
2.13
5.26
8.77
2.99
1.06
2.24

0.59
2.67
0.38
0.43
0.75
0.34
1.46
1.37
12.71
0.89
0.00
0.75

0.82
2.82
0.33
0.51
0.63
0.49
1.38
1.77
9.89
1.14
0.62
0.93

1.62
5.44
0.56
1.09
0.98
0.77
1.96
3.32
6.73
2.07
1.00
1.78

2.00
4.65
0.57
0.79
2.99
1.80
2.24
5.63
8.87
3.26
1.11
2.56

0.69
2.85
0.43
0.62
0.82
0.48
3.12
8.12
9.45
5.73
0.61
2.55

2.03
3.98
0.42
0.94
3.57
1.69
1.33
3.55
8.32
2.12
0.75
1.97

1.98
5.26
0.83
0.99
1.98
1.95
1.79
3.26
7.83
1.89
1.02
2.00

1.61
3.47
0.46
0.39
3.46
1.06
2.41
6.57
10.33
3.43
0.57
2.34

1.06
2.93
0.29
0.92
1.26
0.54
1.09
1.78
4.55
1.09
1.05
1.13

2.35
8.18
0.51
0.76
3.45
2.26
3.34
5.11
7.70
3.49
2.34
3.01

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

$4,651.4
535.8
1,086.5
213.5
672.9
2,012.1
1,364.9
1,037.1
398.2
638.9
574.7
7,628.1

$71.7
7.5
21.8
2.0
2.4
29.2
14.0
7.4
0.1
7.3
11.0
104.2

$734.8
117.3
267.1
31.4
39.6
247.7
122.2
44.5
3.2
41.3
38.4
939.9

$755.1
138.4
271.9
45.5
51.1
233.2
151.3
83.0
21.5
61.5
37.4
1,026.8

$3,089.8
272.6
525.7
134.6
579.8
1,502.0
1,077.4
902.2
373.5
528.7
487.8
5,557.2

$812.1
63.8
204.1
54.1
71.8
413.3
177.9
269.2
172.3
96.9
78.8
1,338.0

$1,343.7
186.6
289.3
38.2
231.7
578.3
382.7
232.6
55.9
176.8
158.5
2,117.6

$984.7
97.8
206.8
62.3
200.7
399.9
314.0
177.1
38.0
139.1
132.5
1,608.4

$403.0
46.4
109.1
11.8
80.3
133.9
135.3
92.3
41.4
50.9
81.5
712.1

$347.9
75.5
121.1
9.9
24.9
105.0
101.3
38.8
7.9
30.9
22.2
510.1

$760.1
65.8
156.2
37.2
63.5
381.7
253.7
227.1
82.8
144.3
101.1
1,341.9

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

33,963.3
13,467.7
4,837.1
1,579.6
11,486.8
173.8
2,303.5

874.1
304.9
227.9
20.9
299.3
20.5
0.7

9,466.1
4,846.7
1,827.6
318.0
2,358.8
107.1
8.8

8,094.8
4,211.9
1,378.8
744.1
1,598.5
30.3
132.0

15,528.3
4,104.3
1,402.8
496.6
7,230.3
15.8
2,161.9

2,209.1
660.2
462.7
90.0
947.2
16.5
21.3

10,665.0
4,575.9
1,380.1
414.3
4,081.6
28.3
185.2

8,510.8
2,435.4
1,030.4
711.2
3,232.7
26.2
1,071.1

4,194.4
1,507.9
678.8
91.5
945.8
35.2
935.4

3,438.4
1,680.8
693.0
100.4
887.6
60.9
15.8

4,945.5
2,607.5
592.2
172.1
1,391.9
6.8
74.7

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

FDIC Quarterly

11

2009, Volume 3, No. 3

TABLE VI-A. Derivatives, All FDIC-Insured Commercial Banks and State-Chartered Savings Banks
Asset Size Distribution
(dollar figures in millions;
2nd Quarter 1st Quarter
notional amounts unless otherwise indicated)
2009
2009
ALL DERIVATIVE HOLDERS
Number of institutions reporting derivatives�����������������
1,213
1,169
Total assets of institutions reporting derivatives���������� $10,593,234 $10,671,165
Total deposits of institutions reporting derivatives�������
7,095,896
6,982,180
Total derivatives������������������������������������������������������������� 204,956,755 203,388,080

%Change
Less
$100
4th Quarter 3rd Quarter 2nd Quarter 08Q2than $100 Million to
2008
2008
2008
09Q2
Million
$1 Billion
1,102
1,070
1,068
$10,975,131 $10,723,566 $10,105,030
7,091,683
6,801,835
6,451,181
212,114,644 177,121,812 183,302,532

$1 Billion
to $10
Greater than
Billion
$10 Billion

13.6
4.8
10.0
11.8

106
$7,460
6,106
294

709
$298,237
238,282
20,859

315
83
$893,695 $9,393,843
666,189
6,185,318
66,244 204,869,358

137,207,613 144,933,910
19,729,753
19,419,103
2,786,005
2,343,165
1,250,074
1,137,544
16,148,367 15,468,809
177,121,812 183,302,532

18.6
-14.3
-12.9
-20.1
-13.1
11.8

282
0
12
0
0
294

20,354
72
181
191
61
20,859

62,286 171,836,386
2,360
16,644,270
1,294
2,040,153
221
908,621
84
13,439,928
66,244 204,869,358

Derivative Contracts by Transaction Type
Swaps���������������������������������������������������������������������������� 135,613,797 133,873,113 143,110,842 108,289,345 114,178,373
Futures & forwards�������������������������������������������������������� 24,706,040 23,587,666 22,528,731 24,492,578 23,581,083
Purchased options��������������������������������������������������������� 14,928,717
14,936,181 14,824,429 13,491,255 14,501,600
Written options��������������������������������������������������������������� 14,787,496 14,983,349 14,922,615 13,454,312
14,415,336
Total�������������������������������������������������������������������������������� 190,036,050 187,380,309 195,386,617 159,727,490 166,676,391

18.8
4.8
2.9
2.6
14.0

21
134
19
120
294

10,429
4,518
931
4,859
20,737

38,733 135,564,613
14,430
24,686,958
4,003
14,923,764
8,607
14,773,909
65,773 189,949,245

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�����������������������������������

126,040
-10,569
679
1,156
-476,973
525,587

138,559
-10,460
3,114
4,158
-959,080
1,031,185

131,483
-16,942
2,871
3,848
-975,755
1,046,813

27,300
15,054
3,742
3,173
-566,035
603,936

75,945
32,017
-3,742
5,064
-398,893
428,844

66.0
N/M
N/M
-77.2
N/M
22.6

1
0
0
0
0
0

-83
0
3
1
0
0

104
6
9
2
2
-2

126,019
-10,576
667
1,153
-476,975
525,589

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

72,457,870
35,921,531
28,356,868
9,490,042
2,293,453
1,193,852
343,418
291,182
75,716
252,705
211,329
45,443

68,442,052
37,293,223
29,984,848
9,234,329
2,163,751
1,056,793
348,777
286,171
82,843
279,748
206,173
41,546

58,618,112
47,456,432
36,868,247
10,561,395
2,168,136
1,079,943
409,029
256,252
72,337
264,916
261,768
45,031

40,400,427
37,760,963
28,785,015
12,664,219
1,787,926
676,596
508,748
332,908
81,967
294,036
288,860
88,832

44,995,355
39,521,416
29,704,390
12,345,486
1,929,554
734,445
504,258
207,513
76,283
315,202
267,344
28,377

61.0
-9.1
-4.5
-23.1
18.9
62.6
-31.9
40.3
-0.7
-19.8
-21.0
60.1

101
15
12
0
0
0
0
4
0
0
0
0

3,887
7,579
3,581
7
3
0
36
83
1
12
111
10

17,083
18,358
16,391
1,445
11
0
83
441
5
172
4
0

72,436,800
35,895,580
28,336,884
9,488,589
2,293,439
1,193,852
343,299
290,654
75,710
252,521
211,213
45,433

107.4
103.2

60.3
122.3

57.8
118.5

0.1
0.1

0.5
0.4

1.7
0.5

75.9
91.8

Derivative Contracts by Underlying Risk Exposure
Interest rate�������������������������������������������������������������������� 171,919,307 169,395,791 175,894,783
Foreign exchange*�������������������������������������������������������� 16,646,702 16,272,941 16,922,815
Equity�����������������������������������������������������������������������������
2,041,640
2,174,368
2,206,793
Commodity & other (excluding credit derivatives)��������
909,033
938,063
1,061,132
Credit������������������������������������������������������������������������������ 13,440,073 14,606,916
16,029,122
Total�������������������������������������������������������������������������������� 204,956,755 203,388,080 212,114,644

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

66.7
80.6

86.1
89.2

147.3

175.3

210.6

182.6

176.3

0.2

0.9

2.1

167.7

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

383.4

217.1

1072.4

226.7

134.8

184.4

0.0

0.6

0.8

382.0

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

204
8,912,447
5,989,045

199
9,016,731
5,886,190

181
9,413,833
6,085,115

187
9,236,235
5,856,346

183
8,598,255
5,502,730

11.5
3.7
8.8

7
512
403

72
31,269
25,096

69
279,235
202,953

56
8,601,431
5,760,593

135,190,125 142,694,501
18,396,233 18,166,939
2,773,712
2,331,974
1,246,952
1,134,781
157,607,022 164,328,194

18.8
-17.1
-12.8
-20.2
14.2

8
0
0
0
8

1,004
0
1
11
1,016

19,496
1,604
258
115
21,472

169,571,397
15,056,684
2,033,970
905,982
187,568,033

-44.0
-10.4
N/M
N/M
179.6

0
0
0
0
0

0
0
0
0
0

-11
7
0
1
-5

1,090
2,125
-281
2,212
5,146

0.0
0.0

0.0
-0.8

-0.1
2.1

4.0
90.7

Derivative Contracts by Underlying Risk Exposure
Interest rate�������������������������������������������������������������������� 169,591,905 167,216,659 173,827,598
Foreign exchange���������������������������������������������������������� 15,058,288 14,766,077
16,147,796
Equity�����������������������������������������������������������������������������
2,034,228
2,162,149
2,195,068
Commodity & other��������������������������������������������������������
906,108
935,634
1,058,678
Total�������������������������������������������������������������������������������� 187,590,530 185,080,519 193,229,140
Trading Revenues: Cash & Derivative Instruments
Interest rate��������������������������������������������������������������������
Foreign exchange����������������������������������������������������������
Equity�����������������������������������������������������������������������������
Commodity & other (including credit derivatives)��������
Total trading revenues���������������������������������������������������

1,078
2,132
-281
2,212
5,141

9,078
2,436
1,043
-2,378
10,179

-5,282
3,422
-1,061
-6,264
-9,186

-137
3,098
561
2,900
6,422

1,926
2,379
372
-2,837
1,839

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

3.9
94.6

7.6
138.0

-8.0
44.1

4.6
66.9

1.3
24.8

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

1,083
10,215,027
6,845,052

1,046
10,303,184
6,728,712

998
10,464,341
6,820,742

970
10,396,557
6,589,371

975
9,806,940
6,256,369

11.1
4.2
9.4

98
6,894
5,661

638
268,553
214,130

270
751,001
559,832

77
9,188,579
6,065,428

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

2,327,403
107,782
7,412
2,924
2,445,520

2,179,131
106,011
12,219
2,429
2,299,790

2,067,185
76,113
11,725
2,454
2,157,477

2,017,489
87,565
12,293
3,121
2,120,468

2,239,410
94,832
11,191
2,763
2,348,196

3.9
13.7
-33.8
5.8
4.1

274
0
12
0
286

19,350
11
181
180
19,721

42,790
369
1,036
106
44,301

2,264,989
107,401
6,184
2,638
2,381,212

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

FDIC Quarterly

12

2009, Volume 3, No. 3

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

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

2nd
Quarter
2009

1st
Quarter
2009

4th
Quarter
2008

3rd
Quarter
2008

2nd
Quarter
2008

Number of institutions reporting securitization activities�����������������������������������������
143
132
132
128
130
Outstanding Principal Balance by Asset Type
1-4 family residential loans�������������������������������������������������������������������������������� $1,222,450 $1,234,585 $1,256,021 $1,217,682 $1,087,215
Home equity loans���������������������������������������������������������������������������������������������
6,594
6,595
6,692
6,880
7,822
Credit card receivables�������������������������������������������������������������������������������������
397,918
399,113
398,261
417,832
409,883
Auto loans����������������������������������������������������������������������������������������������������������
10,266
11,230
12,040
13,842
6,224
Other consumer loans���������������������������������������������������������������������������������������
26,006
26,692
27,427
28,090
28,870
Commercial and industrial loans�����������������������������������������������������������������������
9,019
8,317
9,705
11,080
12,491
All other loans, leases, and other assets*��������������������������������������������������������
193,380
197,693
198,471
197,010
194,756
Total securitized and sold������������������������������������������������������������������������������������������ 1,865,634 1,884,227 1,908,617 1,892,416 1,747,262
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�����������������������������������������������������������������������

%Change Less than
$100
$1 Billion Greater
08Q2$100
Million to
to $10
than $10
09Q2
Million $1 Billion Billion
Billion
10.0

16

62

12.4
-15.7
-2.9
64.9
-9.9
-27.8
-0.7
6.8

$154
0
0
0
0
0
53
207

$835
0
3,304
0
0
4
103
4,247

25

40

-15.1
-30.4
459.4
105.1
-1.3
-40.8
-73.5
297.6
-80.1

4
0
0
0
0
0
1
5
0

16
0
482
0
0
0
19
517
0

0
0
1,681
7
0
0
2
1,691
0

6,026
1,063
127,210
715
1,399
184
277
136,873
378

$2,360 $1,219,101
46
6,548
11,863
382,751
100
10,166
0
26,006
3,365
5,650
145
193,079
17,879 1,843,301

6,046
1,063
129,373
722
1,399
184
299
139,087
378

6,279
1,120
39,100
912
1,429
367
301
49,509
397

6,892
1,247
23,228
707
1,532
137
612
34,355
830

7,514
1,347
24,039
447
1,428
170
714
35,660
1,273

7,121
1,527
23,129
352
1,417
311
1,128
34,984
1,902

4.3
0.8
2.6
2.2
2.9
2.6
1.9
3.7

4.1
1.1
3.0
2.0
3.1
3.1
0.6
3.5

4.4
1.4
2.9
2.5
3.9
2.6
0.6
3.7

3.8
1.3
2.5
2.1
3.2
1.6
0.2
3.1

2.8
0.6
2.1
2.2
2.7
1.3
0.3
2.3

1.9
0.0
0.0
0.0
0.0
0.0
0.0
1.4

0.4
0.0
1.6
0.0
0.0
8.3
0.0
1.4

2.1
6.2
1.8
0.7
0.0
5.9
0.0
2.6

4.3
0.8
2.7
2.2
2.9
0.6
1.9
3.7

6.6
0.9
2.9
0.2
3.3
1.3
1.6
5.2

5.8
1.4
3.0
0.2
3.5
3.1
1.1
4.6

4.5
1.2
2.5
0.3
3.7
2.1
0.4
3.6

3.2
0.7
2.1
0.2
2.9
1.5
0.2
2.6

1.9
0.7
2.1
0.3
2.4
1.3
0.2
1.8

1.4
0.0
0.0
0.0
0.0
0.0
0.8
1.2

0.5
0.0
1.3
0.0
0.0
13.2
0.0
1.2

1.2
6.0
1.8
0.1
0.0
2.2
0.0
1.8

6.6
0.8
2.9
0.2
3.3
0.8
1.6
5.2

0.5
0.9
4.8
1.1
0.5
6.9
0.0
1.4

0.2
0.6
2.1
0.8
0.2
2.6
0.0
0.6

0.3
0.1
6.4
0.8
0.8
5.9
0.0
1.6

0.3
0.4
4.4
1.3
0.6
3.6
0.0
1.2

0.1
0.2
2.8
0.9
0.4
1.9
0.0
0.7

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
3.3
0.0
0.0
0.0
0.0
2.5

0.1
3.5
3.0
0.2
0.0
17.3
0.0
5.2

0.5
0.9
4.9
1.1
0.5
0.6
0.0
1.3

134
68,128
451

165
77,212
450

124
113,017
436

166
98,826
636

435
82,604
3,506

-69.2
-17.5
-87.1

0
0
0

0
322
0

0
3,867
295

134
63,938
156

4
594
0

5
556
0

5
584
16

6
623
15

7
403
1

-42.9
47.4
-100.0

0
0
0

0
3
0

0
592
0

4
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�����������������������������������������������������������������������������������

821

815

795

786

776

5.8

161

499

116

45

69,597
1,160
3,195
47,558
121,511

69,811
1,348
6,028
46,438
123,625

70,660
1,477
6,698
46,254
125,088

73,001
1,611
7,314
45,203
127,129

65,959
1,786
4,794
33,191
105,730

5.5
-35.1
-33.4
43.3
14.9

1,202
0
1
0
1,203

9,929
31
60
98
10,118

4,589
12
8
178
4,786

53,878
1,117
3,126
47,283
105,403

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

14,917
113
2,224
10,009
27,263

15,198
183
4,995
9,790
30,166

15,290
189
5,617
9,528
30,625

15,586
203
6,180
9,312
31,280

14,543
240
3,614
8,541
26,937

2.6
-52.9
-38.5
17.2
1.2

121
0
1
0
122

2,118
7
50
44
2,219

2,838
3
8
59
2,908

9,841
102
2,166
9,907
22,015

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

59
3,808

55
2,131

51
3,319

49
6,050

47
12,668

25.5
-69.9

21
10

28
57

5
14

5
3,726

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

475

936

1,416

3,531

5,492

-91.4

0

0

0

475

5,615,123 5,528,963

5,707,851

Other
Assets serviced for others**�������������������������������������������������������������������������������������� 5,880,038 5,683,430
Asset-backed commercial paper conduits
Credit exposure to conduits sponsored by institutions and others������������������
20,210
22,981
Unused liquidity commitments to conduits sponsored by institutions
210,026
273,542
		
and others��������������������������������������������������������������������������������������������������
Net servicing income (for the quarter)����������������������������������������������������������������������
10,858
5,947
Net securitization income (for the quarter)���������������������������������������������������������������
-142
2,124
Total credit exposure to Tier 1 capital (%)***������������������������������������������������������������
15.7
7.7

3,921,914

49.9

4,299

72,657

95,231

23,064

20,830

21,083

-4.1

5

0

455

19,751

297,908

311,683

339,007

-38.0

0

0

0

210,026

-336
2,393
6.8

4,110
3,120
7.4

7,280
4,206
7.3

49.1
-103.4

9
0
0.7

188
48
2.2

307
62
3.4

10,354
-252
20.2

* Line item titled “All other loans and all leases” for quarters prior to March 31, 2006.
** The amount of financial assets serviced for others, other than closed-end 1-4 family residential mortgages, is reported when these assets are greater than $10 million.
*** Total credit exposure includes the sum of the three line items titled “Total credit exposure” reported above.

FDIC Quarterly

13

2009, Volume 3, No. 3

INSURANCE FUND INDICATORS
■ DIF Reserve Ratio Declines 5 Basis Points to 0.22 Percent
■ Insured Deposit Growth Was Flat in Second Quarter
■ 24 Institutions Failed during Second Quarter
■ 5-Basis-Point Special Assessment Levied on Industry Assets
During the second quarter of 2009, total assets of the
nation’s 8,195 FDIC-insured commercial banks and
savings institutions decreased by 1.8 percent ($238.1
billion). During this period, total deposits increased by
0.7 percent ($66.7 billion), foreign office deposits
increased by 3.6 percent ($51.0 billion), and domestic
office deposits increased by 0.2 percent ($15.7 billion).
Domestic non-interest-bearing deposits increased by
2.3 percent ($32.6 billion) and savings deposits and
interest bearing checking accounts increased by 2.8
percent ($92.9 billion), while domestic time deposits
decreased by 4.0 percent ($109.8 billion). For the 12
months ending June 30, total domestic deposits grew by
7.5 percent ($525.5 billion), as interest-bearing deposits
increased by 4.7 percent ($274.3 billion) and non-­
interest-bearing deposits rose by 20.5 percent ($251.3
billion). Over the past year, the share of assets funded
by domestic deposits increased from 52.8 percent to
56.8 percent. In contrast, over the same 12 months,
Federal Home Loan Bank (FHLB) advances as a share
of asset funding declined from 6.3 percent to 4.8
percent and foreign deposits’ share of assets declined
from 11.6 percent to 11.0 percent. FHLB advances
decreased by 24.5 percent ($206.1 billion) and foreign
office deposits decreased by 5.0 percent ($77.6 billion)
over the 12 months ending June 30.

deposits decreased by 5.8 percent ($45.2 billion) during
the second quarter, the largest quarterly decline since
the first quarter of 2005, when brokered deposits
decreased by 9.6 percent. At mid-year 2009, 46 percent
(3,758) of FDIC-insured banks and thrifts used brokered
deposits to fund a portion of their balance sheet, and
roughly 40 percent (1,488) of these institutions had
brokered deposits that exceeded 10 percent of their
domestic deposits. Insured institutions began itemizing
reciprocal brokered deposits2 on their reports of condition beginning June 30, 2009; 1,352 institutions
reported $34.2 billion in reciprocal brokered deposits,
amounting to 4.7 percent of total outstanding brokered
deposits.
Estimated insured deposits at all FDIC-insured institutions (based on the $100,000 coverage limit) decreased
by 0.3 percent during the second quarter of 2009 but
increased 7.8 percent during the past four quarters
combined. For institutions existing as of March 31,
2009, and June 30, 2009, insured deposits increased
during the second quarter at 4,724 institutions (58
percent), decreased at 3,419 institutions (42 percent),
and remained unchanged at 40 institutions.
On May 20, 2009, the President signed the Helping
Families Save Their Homes Act of 2009, which
extended the temporary deposit insurance coverage
limit increase to $250,000 (from the permanent limit of
$100,000 for deposits other than retirement accounts)
through the end of 2013. The legislation also eliminated the provision in the Emergency Economic Stabilization Act of 2008 that prevented the FDIC from
considering this temporary increase in deposit insurance

Beginning in the second quarter of 2009, brokered
deposits that exceed 10 percent of an institution’s
domestic deposits are included in the metrics used to
price an institution’s deposit insurance.1 Brokered
For an institution in Risk Category I, the initial base assessment rate
depends, in part, on the institution’s adjusted brokered deposit ratio.
This ratio will exceed zero if an institution’s brokered deposits are
greater than 10 percent of its domestic deposits and its total assets
are more than 40 percent greater than they were four years previously.
Certain reciprocal brokered deposits are excluded from the calculation
of the adjusted brokered deposit ratio. For an institution in any other
risk category, the initial base assessment rate is increased if the institution’s ratio of brokered deposits to domestic deposits is greater than
10 percent, regardless of the rate of growth of assets. Reciprocal
brokered deposits are included in the amount of brokered deposits for
purposes of computing this ratio.
1

FDIC Quarterly

Reciprocal brokered deposits are deposits that an insured depository
institution receives through a deposit placement network on a reciprocal basis, such that: (1) For any deposit received, the institution (as
agent for depositors) places the same amount with other insured
depository institutions through the network; and (2) each member of
the network sets the interest rate to be paid on the entire amount of
funds it places with other network members.
2

14

2009, Volume 3, No. 3

Quarterly Banking Profile
coverage for purposes of setting deposit insurance assessments. Starting on September 30, 2009, insured deposit
estimates will be based on the increased insurance
coverage limit of $250,000.

The reduction in the DIF was primarily due to an $11.6
billion increase in loss provisions for bank failures.
Twenty-four insured institutions with combined assets
of $26.4 billion failed during the second quarter of
2009, the largest number of quarterly failures since the
fourth quarter of 1992, when 42 insured institutions
failed. For 2009 through the end of the second quarter,
45 insured institutions with combined assets of $35.9
billion failed at an estimated current cost to the DIF of
$10.5 billion.

On June 30, 2009, a special assessment was imposed on
all insured banks and thrifts. For 8,106 institutions,
with assets of $9.3 trillion, the special assessment was 5
basis points of each institution’s assets minus Tier 1
capital; 89 other institutions, with assets of $4.0 trillion,
had their special assessment capped at 10 basis points of
their second quarter assessment base.

The DIF’s reserve ratio was 0.22 percent on June 30,
2009, down from 0.27 percent at March 31, 2009, and
1.01 percent one year ago. The June figure is the lowest
reserve ratio for the combined bank and thrift insurance
fund since March 31, 1993, when the reserve ratio was
0.06 percent. All else being equal, an increase in
insured deposits, will reduce the reserve ratio.

The Deposit Insurance Fund (DIF) decreased by $2.6
billion (20.3 percent) during the second quarter to
$10.4 billion (unaudited). Accrued assessment income
from the regular and the special assessment increased
the fund by $9.1 billion. Interest earned, combined with
realized gains on securities and debt guarantee
surcharges from the Temporary Liquidity Guarantee
Program added $1.1 billion to the fund. Unrealized
losses on available-for-sale securities combined with
operating expenses reduced the fund by $1.3 billion.

FDIC Quarterly

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

15

2009, Volume 3, No. 3

Table I-B. Insurance Fund Balances and Selected Indicators
2nd
Quarter
(dollar figures in millions)
2009*
Beginning Fund Balance�����������������
$13,007

Deposit Insurance Fund
2nd
1st
4th
3rd
Quarter
Quarter
Quarter
Quarter
2008
2008
2007
2007
$52,843
$52,413
$51,754
$51,227

1st
Quarter
2009*
$17,276

4th
Quarter
2008
$34,588

3rd
Quarter
2008
$45,217

9,095

2,615

996

881

640

448

239

240
521
298
11,615
375

212
136
266
6,637
2

277
302
290
19,163
15

526
473
249
11,930
16

651
0
256
10,221
1

618
0
238
525
0

-957
-2,639

-331
-4,269

551
-17,312

-346
-10,629

1,559
-7,626

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

10,368

13,007

17,276

34,588

-77.07

-75.39

-67.04

-33.17

Reserve Ratio (%)�����������������������������

0.22

0.27

0.36

0.76

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�����������������

2nd
Quarter
2007
$50,745

1st
Quarter
2007
$50,165

4th
Quarter
2006
$49,992

3rd
Quarter
2006
$49,564

2nd
Quarter
2006
$49,193

170

140

94

10

10

7

585
0
262
39
-2

640
0
243
132
24

748
0
248
-3
1

567
0
239
-73
4

476
0
248
49
5

622
0
237
-50
1

665
0
242
-6
12

127
430

138
659

68
527

-162
482

81
580

-21
173

-18
428

-77
371

45,217

52,843

52,413

51,754

51,227

50,745

50,165

49,992

49,564

-11.73

4.13

4.48

3.52

3.36

3.15

3.23

3.35

3.21

1.01

1.19

1.22

1.22

1.21

1.20

1.21

1.22

1.23

Estimated Insured Deposits**�������� 4,817,712 4,832,842 4,750,724 4,545,316 4,467,808 4,438,141 4,292,221 4,242,607 4,235,044 4,245,266 4,153,786 4,100,013 4,040,353
Percent change from four
		
quarters earlier���������������������
7.83
8.89
10.68
7.13
5.50
4.54
3.33
3.48
4.82
6.08
6.76
7.02
7.52
Domestic Deposits��������������������������� 7,561,458 7,546,973 7,505,409 7,230,328 7,036,248 7,076,718 6,921,687 6,747,998 6,698,886 6,702,598 6,640,105 6,484,372 6,446,868
Percent change from four
		
quarters earlier���������������������
7.46
6.65
8.43
7.15
5.04
5.58
4.24
4.07
3.91
5.71
6.59
6.76
8.68
Number of institutions reporting���

8,205

8,257

8,315

8,394

8,462

8,505

8,545

8,570

8,625

1.25 1.23 1.23 1.22
1.21 1.20 1.21 1.22 1.22 1.19

9/05
12/05
3/06
6/06
9/06
12/06
3/07
6/07
9/07
12/07
3/08
6/08
9/08
12/08
3/09
6/09

1.01

0.76

0.36
0.27

6/06

12/06

6/07

12/07

8,692

8,755

8,790

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

DIF Reserve Ratios***

Percent of Insured Deposits

12/05

8,661

6/08

12/08

0.22

6/09

DIF
Balance

DIF-Insured
Deposits

48,373
48,597
49,193
49,564
49,992
50,165
50,745
51,227
51,754
52,413
52,843
45,217
34,588
17,276
13,007
10,368

3,830,950
3,890,941
4,001,906
4,040,353
4,100,013
4,153,786
4,245,266
4,235,044
4,242,607
4,292,221
4,438,141
4,467,808
4,545,316
4,750,724
4,832,842
4,817,712

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

2009*****

2008*****

2008

2007

2006

2005

2004

416
$299,837

117
$78,343

252
$159,405

76
$22,189

50
$8,265

52
$6,607

45
$35,868

4
$2,020

25
$371,945

3
$2,615

0
$0

0
$0

4
$170

0
$0

0
$0

5
$1,306,042

0
0

0
0

0
0

0
0

80
$28,250

* For 2009, preliminary unaudited fund data, which are subject to change.
** The Emergency Economic Stabilization Act of 2008 directs the FDIC not to consider the temporary coverage increase to $250,000 in setting assessments. Therefore, we do not include
the additional insured deposits in calculating the fund reserve ratio, which guides our assessment planning, from fourth quarter 2008 through the second quarter of 2009. The Helping
Families Save Their Homes Act of 2009 eliminated the prohibition against the FDIC’s taking the temporary increase into account when setting assessments. Beginning in the third
­quarter of 2009 estimates of insured deposits will included the temporary coverage increase to $250,000.
*** Prior to 2006, amounts represent sum of separate BIF and SAIF amounts.
**** Five institutions under the same holding company received assistance under a systemic risk determination.
***** Through June 30.

FDIC Quarterly

16

2009, Volume 3, No. 3

Quarterly Banking Profile
Table III-B. Estimated FDIC-Insured Deposits by Type of Institution
(dollar figures in millions)
Number of
Institutions

June 30, 2009
Commercial Banks and Savings Institutions

Total
Assets

Domestic
Deposits*

Est. Insured
Deposits

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

6,995
4,632
1,505
858

$11,895,077
2,009,048
8,177,336
1,708,693

$6,611,400
1,511,377
4,138,412
961,611

$4,054,368
1,079,959
2,399,642
574,767

FDIC-Insured Savings Institutions����������������������������������������������
		 OTS-Supervised Savings Institutions������������������������������������
		 FDIC-Supervised State Savings Banks���������������������������������

1,200
793
407

1,406,377
1,098,694
307,683

943,274
722,687
220,587

758,921
586,779
172,142

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

8,195

13,301,455

7,554,674

4,813,289

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

10

28,162

6,783

4,423

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

8,205

13,329,617

7,561,458

4,817,712

* Excludes $1.47 trillion in foreign office deposits, which are uninsured.

Table IV-B. Distribution of Institutions and Domestic Deposits Among Risk Categories
Quarter Ending March 31, 2009
(dollar figures in billions)
Risk Category
I - Minimum..............................................................................
I - Middle..................................................................................
I - Middle..................................................................................
I - Maximum.............................................................................
II...............................................................................................
III..............................................................................................
IV..............................................................................................

Annual
Rate in
Basis Points
12
12.01-13.00
13.01-13.99
14
17
35
50

Number of
Institutions
1,331
1,840
1,489
2,343
905
273
76

Percent
of Total
Institutions
16.1
22.3
18.0
28.4
11.0
3.3
0.9

Domestic
Deposits
1,478
1,641
1,055
909
2,268
160
38

Percent
of Total
Domestic
Deposits
19.6
21.7
14.0
12.0
30.0
2.1
0.5

Note: Institutions are categorized based on supervisory ratings, debt ratings, and financial data as of March 31, 2009.
Rates do not reflect the application of assessment credits. See notes to users for further information on risk categories and rates.

FDIC Quarterly

17

2009, Volume 3, No. 3

TEMPORARY LIQUIDITY GUARANTEE PROGRAM
■ Transaction Account Guarantee Program Extended to June 30, 2010
■ Debt Guarantee Program Extended to October 31, 2009
■ More Than 600,000 Additional Transaction Accounts Receive Full Coverage
■ $339 Billion in Debt Outstanding in Program
All insured depository institutions are eligible to participate in the Transaction Account Guarantee Program.
Institutions eligible for participation in the Debt Guarantee Program include insured depository institutions,
U.S. bank holding companies, certain U.S. savings and
loan holding companies, and other affiliates of insured
depository institutions that the FDIC designates as
eligible entities.

FDIC Responds to Market Disruptions with TLGP
The FDIC Board approved the Temporary Liquidity
Guarantee Program (TLGP)1 on October 13, 2008, as
major disruptions in credit markets blocked access to
liquidity for financial institutions. The TLGP improved
access to liquidity by fully guaranteeing non-interestbearing transaction deposit accounts above $250,000,
regardless of dollar amount, in the Transaction Account
Guarantee Program, and by guaranteeing eligible senior
unsecured debt issued by eligible institutions in the
Debt Guarantee Program.

Program Funded by Industry Fees and Assessments
The TLGP does not rely on taxpayer funding or the
Deposit Insurance Fund. Both components of the
program are paid for by direct user fees. Institutions
participating in the Transaction Account Guarantee
Program provide customers full coverage on non-­
interest-bearing transaction accounts for an annual fee
of 10 basis points through year-end 2009. Fees for qualifying non-interest-bearing transaction accounts guaranteed between January 1, 2010, and June 30, 2010, will
be based on the participating entity’s risk category
assignment under the FDIC’s risk-based premium
system. Annualized fees will be either 15, 20, or 25 basis
points, depending on an institution’s risk category.

Although financial markets have improved significantly since the TLGP was implemented, portions of
the industry are still suffering from recent economic
turmoil. To facilitate the orderly phase-out of the
TLGP, and to continue access to FDIC guarantees
where they are needed, the FDIC Board has extended
both components of the program.
A final rule extending the Transaction Account Guarantee component of the TLGP by six months, to June 30,
2010, was adopted on August 26, 2009. Entities currently
participating in the Transaction Account Guarantee
Program will have an opportunity to opt out of the
extended program. Depository institutions that remain
in the extended program will be subject to increased fees
that are adjusted to reflect the institution’s risk.2

Fees for participation in the Debt Guarantee Program
depend on the maturity of debt issued and range from
50 to 100 basis points (annualized). A surcharge will be
imposed on debt issued with a maturity of one year or
greater after April 1, 2009. For debt that is not issued
under the extension, that is, debt that is issued on or
before June 30, 2009, and matures on or before June 30,
2012, surcharges will be 10 basis points (annualized) on
debt issued by insured depository institutions and 20
basis points (annualized) on debt issued by other participating entities. For debt issued under the extension,
that is, debt issued after June 30, 2009, or debt that
matures after June 30, 2012, surcharges will be 25 basis
points (annualized) on debt issued by insured depository
institutions and 50 basis points (annualized) on debt
issued by other participating entities. As of June 30,
2009, a total of $8.7 billion in fees had been assessed
under the Debt Guarantee Program.

On March 17, 2009, the Board of Directors of the FDIC
voted to extend the deadline for issuance of guaranteed
debt from June 30, 2009, to October 31, 2009, and
extended the expiration date of the guarantee to the
earlier of maturity of the debt or December 31, 2012,
from June 30, 2012. The FDIC imposed a surcharge on
debt issued with a maturity of one year or more beginning in the second quarter of 2009.3
The FDIC invoked the systemic risk exception pursuant to section
141 of the Federal Deposit Improvement Act of 1991, 12 U.S.C.
1823(c)(4) on October 13, 2008. For further information on the TLGP,
see http://www.fdic.gov/regulations/resources/TLGP/index.html
2
See http://www.fdic.gov/news/board/Aug26no4.pdf
3
See http://www.fdic.gov/news/board/Mar1709rule.pdf
1

FDIC Quarterly

18

2009, Volume 3, No. 3

Quarterly Banking Profile
A Majority of Eligible Entities Have Chosen to
Participate in the TLGP

$339 Billion in FDIC-Guaranteed Debt Was
Outstanding at June 30, 2009

More than 86 percent of FDIC-insured institutions
have opted in to the Transaction Account Guarantee
Program, and more than half of all eligible entities have
opted in to the Debt Guarantee Program. Lists of institutions that opted out of the guarantee programs are
posted at http://www.fdic.gov/regulations/resources/
TLGP/optout.html.

Ninety-seven financial entities—64 insured depository
institutions and 33 bank and thrift holding companies
and nonbank affiliates—had $339 billion in guaranteed
debt outstanding at the end of the second quarter.
Some banking groups issued FDIC-guaranteed debt at
both the subsidiary and holding company level, but
most guaranteed debt was issued by holding companies
or nonbank affiliates of depository institutions. Bank
and thrift holding companies and nonbank affiliates
issued 82 percent of FDIC-guaranteed debt outstanding
at June 30, 2009.

$700 Billion in Transaction Accounts Over
$250,000 Guaranteed
According to second quarter 2009 Call and Thrift
Financial Reports, insured institutions reported 655,427
non-interest-bearing transaction accounts over
$250,000, an increase of 12 percent compared with first
quarter 2009. These deposit accounts totaled $900
billion, of which $736 billion was guaranteed under the
Transaction Account Guarantee Program. More than
5,800 FDIC-insured institutions reported non-interestbearing transaction accounts over $250,000 in value.

Debt outstanding at June 30 had longer terms at
­issuance, compared with debt outstanding at year-end.
Only 17 percent of debt outstanding matures in 180
days or less, compared with 49 percent at year-end; and
62 percent matures more than two years after issuance,
compared with 39 percent at December 31, 2008.
Among types of debt instruments, almost three-­
quarters, 74 percent, was in medium-term notes,
compared with 44 percent at year-end. The share of
outstanding debt in commercial paper fell to 15 percent
from 43 percent at year-end.

Debt Outstanding Represents 43 Percent of
Total Cap on Issuers’ Guaranteed Debt
The amount of FDIC-guaranteed debt that can be
issued by each eligible entity, or its “cap,” is based on
the amount of its senior unsecured debt outstanding as
of September 30, 2008, that matures on or before June
30, 2009. Eligible entities may issue debt up to 125
percent of that outstanding amount. The cap for FDICinsured institutions that had no outstanding short-term
senior unsecured debt other than Fed funds is set at
2 percent of liabilities as of September 30, 2008. Total
debt outstanding at quarter end represented 43 percent
of issuing entities’ total cap.

Author:	Katherine Wyatt
Chief, Financial Analysis Section
Division of Insurance and Research
(202) 898-6755

Table I-C. Participation in Temporary Liquidity Guarantee Program
June 30, 2009
Total Eligible Entities
Transaction Account Guarantee Program
Depository Institutions with Assets <= $10 Billion��������������������������������
8,087
Depository Institutions with Assets > $10 Billion����������������������������������
117
		 Total Depository Institutions*����������������������������������������������������������
8,204
Debt Guarantee Program
Depository Institutions with Assets <= $10 Billion��������������������������������
Depository Institutions with Assets > $10 Billion����������������������������������
		 Total Depository Institutions*����������������������������������������������������������
Bank and Thrift Holding Companies and
Non-Insured Affiliates����������������������������������������������������������������������������
		 All Entities����������������������������������������������������������������������������������������
* Depository institutions include insured branches of foreign banks (IBAs)

FDIC Quarterly

19

Number Opting In

Percent Opting In

6,992
109
7,101

86.5%
93.2%
86.6%

8,087
117
8,204

4,356
108
4,464

53.9%
92.3%
54.4%

6,324
14,528

3,574
8,038

56.5%
55.3%

2009, Volume 3, No. 3

Table II-C. Cap on FDIC-Guaranteed Debt for Opt-In Entities
Opt-In Entities with Senior Unsecured
Debt Outstanding at 9/30/2008
Debt Amount
as of
Number
9/30/2008
Initial Cap

June 30, 2009
(dollar figures in millions)
Depository Institutions with Assets
<= $10 Billion*������������������������������������
Depository Institutions with Assets
> $10 Billion*��������������������������������������
Bank and Thrift Holding
Companies, Non-Insured Affiliates���������
Total���������������������������������������������������������

Opt-In Depository Institutions
with no Senior Unsecured
Debt at 9/30/2008
2% Liabilities
as of
Number
9/30/2008

Total
Entities

Total Initial
Cap

116

$3,532

$4,415

4,240

$33,336

4,356

$37,751

44

295,879

369,849

64

28,988

108

398,837

88
248

398,008
697,420

497,511
871,775

3,486
7,790

N/A
62,324

3,574
8,083

497,511
934,099

* Depository institutions include insured branches of foreign banks (IBAs)

N/A - Not applicable

Table III-C. Transaction Account Guarantee Program
(dollar figures in millions)
Number of Non-Interest-Bearing Transaction Accounts over $250,000�������
Amount in Non-Interest-Bearing Transaction .Accounts over $250,000��������
Amount Guaranteed���������������������������������������������������������������������������������������

December 31,
2008
526,158
$853,671
$722,132

March 31,
2009
584,839
$858,023
$711,813

June 30,
2009
655,427
$899,982
$736,125

% Change
09Q1-09Q2
12.1%
4.9%
3.4%

Table IV-C. Debt Outstanding in Guarantee Program
June 30, 2009
(dollar figures in millions)
Insured Depository Institutions
Assets <= $10 Billion�������������������������������������������������������
Assets > $10 Billion���������������������������������������������������������
Bank and Thrift Holding Companies,
Non-Insured Affiliates������������������������������������������������������������
All Issuers�����������������������������������������������������������������������

Number

Debt Outstanding

Debt Outstanding
Share of Cap

Cap1 for Group

44
20

1,635
59,691

3,059
314,778

53.5%
19.0%

33
97

277,712
339,038

471,205
789,042

58.9%
43.0%

The amount of FDIC-guaranteed debt that can be issued by each eligible entity, or its “cap,” is based on the amount of senior unsecured debt outstanding as of
September 30, 2008. The cap for a depository institution with no senior unsecured debt outstanding at September 30, 2008, is set at 2 percent of total liabilities.
See http://www2.fdic.gov/qbp/2008dec/tlgp2c.html for more information.
1

Table V-C. Fees Assessed Under TLGP
Transaction Account
Guarantee Program*

Debt Guarantee Program
(dollar figures in millions)
Fourth Quarter 2008��������������������������������������������������������������
First Quarter 2009�����������������������������������������������������������������
Second Quarter 2009

Total Fees
Assessed
$3,437
3,433
1,413

Total���������������������������������������������������������������������������������

$8,283

385

Total Fee
Amount
$3,437
3,433
1,797

$385

$8,667

Surcharges

Fees Collected
90
179
$269

* Pro-rated payment in arrears

Table VI-C. Term at Issuance of Debt Instruments Outstanding
June 30, 2009
(dollar figures in millions)
Term at Issuance
90 days or less��������������������������������������
91-180 days�������������������������������������������
181-364 days�����������������������������������������
1-2 years�����������������������������������������������
Over 2-3 years��������������������������������������
Over 3 years������������������������������������������
Total������������������������������������������������
Share of Total����������������������������������������

FDIC Quarterly

Interbank
Other
Commercial Eurodollar
Medium
Interbank
Paper
Deposits Term Notes Deposits
24,390
24,134
2,608
0
0
1
51,133
15.1%

35
528
22
3
0
0
588
0.2%

0
0
3,400
56,341
70,697
120,235
250,673
73.9%

20

134
1,812
1,587
37
0
4
3,573
1.1%

Other
Senior
Unsecured
Other
Debt
Term Note
0
480
1
0
3,352
3,713
7,545
2.2%

794
5,330
2,371
4,790
5,991
6,251
25,527
7.5%

All Debt
25,353
32,283
9,988
61,172
80,039
130,203
339,038

Share
by Term
7.5%
9.5%
2.9%
18.0%
23.6%
38.4%

2009, Volume 3, No. 3

Quarterly Banking Profile

Notes to Users

All asset and liability figures used in calculating performance
ratios represent average amounts for the period (beginning-ofperiod amount plus end-of-period amount plus any interim
periods, divided by the total number of periods). For “poolingof-interest” mergers, the assets of the acquired institution(s)
are included in average assets since the year-to-date income
includes the results of all merged institutions. No adjustments
are made for “purchase accounting” mergers. Growth rates
represent the percentage change over a 12-month period in
totals for institutions in the base period to totals for institutions in the current period.
All data are collected and presented based on the location of
each reporting institution’s main office. Reported data may
include assets and liabilities located outside of the reporting
institution’s home state. In addition, institutions may relocate
across state lines or change their charters, resulting in an
inter-regional or inter-industry migration, e.g., institutions
can move their home offices between regions, and savings
institutions can convert to commercial banks or commercial
banks may convert to savings institutions.

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

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

ACCOUNTING CHANGES
Other-Than-Temporary Impairment
When the fair value of an investment in a debt or equity
security is less than its cost basis, the impairment is either
temporary or other-than-temporary. To determine whether
the impairment is other-than-temporary, an institution must
apply other pertinent guidance such as paragraph 16 of
FASB Statement No. 115, Accounting for Certain Investments
in Debt and Equity Securities; FASB Staff Position (FSP) FAS
115-1 and FAS 124-1, The Meaning of Other-Than-Temporary
Impairment and Its Application to Certain Investments; FSP
FAS 115‑2 and FAS 124-2, Recognition and Presentation of
Other-Than-Temporary Impairments; paragraph 6 of
Accounting Principles Board Opinion No. 18, The Equity
Method of Accounting for Investments in Common Stock;
Emerging Issues Task Force (EITF) Issue No. 99-20,
Recognition of Interest Income and Impairment on Purchased
Beneficial Interests and Beneficial Interests That Continue to Be
Held by a Transferor in Securitized Financial Assets; and FSP
EITF 99-20-1, Amendments to the Impairment Guidance of
EITF Issue No. 99-20.
Under FSP FAS 115-2 and FAS 124-2 issued on April 9,
2009, if the present value of cash flows expected to be collected on a debt security is less than its amortized cost basis, a
credit loss exists. In this situation, if an institution does not
intend to sell the security and it is not more likely than not
that the institution will be required to sell the debt security
before recovery of its amortized cost basis less any current-­
period credit loss, an other-than-temporary impairment has
occurred. The amount of the total other-than-temporary
impairment related to the credit loss must be recognized in
earnings, but the amount of the total impairment related to
other factors must be recognized in other comprehensive
income, net of applicable taxes. Although the debt security
would be written down to its fair value, its new amortized cost
basis is the previous amortized cost basis less the other-thantemporary impairment recognized in earnings. In addition, if
an institution intends to sell a debt security whose fair value
is less than its amortized costs basis or it is more likely than
not that the institution will be required to sell the debt

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

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

COMPUTATION METHODOLOGY
Parent institutions are required to file consolidated reports,
while their subsidiary financial institutions are still required
to file separate reports. Data from subsidiary institution
reports are included in the Quarterly Banking Profile tables,
which can lead to double-counting. No adjustments are made
for any double-counting of subsidiary data. Additionally,
­certain adjustments are made to the OTS Thrift Financial
Reports to provide closer conformance with the reporting and
accounting requirements of the FFIEC Call Reports.

FDIC Quarterly

21

2009, Volume 3, No. 3

s­ ecurity before recovery of its amortized cost basis, an otherthan-temporary impairment has occurred and the entire
­difference between the security’s amortized cost basis and its
fair value must be recognized in earnings.
For any debt security held at the beginning of the interim
period in which FSP FAS 115-2 and FAS 124-2 is adopted
for which an other-than-temporary impairment loss has been
previously recognized, if an institution does not intend to sell
such a debt security and it is not more likely than not that
the institution will be required to sell the debt security before
recovery of its amortized cost basis, the institution should recognize the cumulative effect of initially applying the FSP as
an adjustment to the interim period’s opening balance of
retained earnings, net of applicable taxes, with a corresponding adjustment to accumulated other comprehensive income.
The cumulative effect on retained earnings must be calculated by comparing the present value of the cash flows expected
to be collected on the debt security with the security’s amortized cost basis as of the beginning of the interim period of
adoption.
FSP FAS 115-2 and FAS 124-2 are effective for interim and
annual reporting periods ending after June 15, 2009. Early
adoption of this FSP is permitted for periods ending after
March 15, 2009, if certain conditions are met. Institutions are
expected to adopt FSP FAS 115-2 and 124-2 for regulatory
reporting purposes in accordance with the FSP’s effective date.

with calendar year fiscal years, these two accounting standards
take effect in 2009. Beginning in March 2009, Institution
equity capital and Noncontrolling interests are separately
reported in arriving at Total equity capital.
FASB Statement No. 157 Fair Value Measurements issued in
September 2006 and FASB Statement No. 159 The Fair Value
Option for Financial Assets and Financial Liabilities issued in
February 2007—both are effective in 2008 with early adoption
permitted in 2007. FAS 157 defines fair value and establishes
a framework for developing fair value estimates for the fair
value measurements that are already required or permitted
under other standards. FASB FSP 157-4, issued in April 2009,
provides additional guidance for estimating fair value in
accordance with FAS 157 when the volume and level of
activity for the asset or liability have significantly decreased.
The FSP also includes guidance on identifying circumstances
that indicate a transaction is not orderly. The FSP is effective
for interim and annual reporting periods ending after June 15,
2009, with early adoption permitted for periods ending after
March 15, 2009.
Fair value continues to be used for derivatives, trading securities, and available-for-sale securities. Changes in fair value go
through earnings for trading securities and most derivatives.
Changes in the fair value of available-for-sale securities are
reported in other comprehensive income. Available-for-sale
securities and held-to-maturity debt securities are written down
to fair value if impairment is other than temporary and loans
held for sale are reported at the lower of cost or fair value.
FAS 159 allows institutions to report certain financial assets
and liabilities at fair value with subsequent changes in fair
value included in earnings. In general, an institution may
elect the fair value option for an eligible financial asset or liability when it first recognizes the instrument on its balance
sheet or enters into an eligible firm commitment.
FASB Statement No. 158 Employers’ Accounting for Defined Benefit
Pension and Other Postretirement Plans—issued in September
2006 requires a bank to recognize in 2007, and subsequently,
the funded status of its postretirement plans on its balance
sheet. An overfunded plan is recognized as an asset and an
underfunded plan is recognized as a liability. An adjustment is
made to equity as accumulated other comprehensive income
(AOCI) upon application of FAS 158, and AOCI is adjusted
in subsequent periods as net periodic benefit costs are recognized in earnings.
FASB Statement No. 156 Accounting for Servicing of Financial
Assets—issued in March 2006 and effective in 2007, requires
all separately recognized servicing assets and liabilities to be
initially measured at fair value and allows a bank the option
to subsequently adjust that value by periodic revaluation and
recognition of earnings or by periodic amortization to
earnings.
FASB Statement No. 155 Accounting for Certain Hybrid Financial
Instruments—issued in February 2006, requires bifurcation of
certain derivatives embedded in interests in securitized financial assets and permits fair value measurement (i.e., a fair
value option) for any hybrid financial instrument that contains an embedded derivative that would otherwise require
bifurcation under FASB Statement No. 133, Accounting for
Derivative Instruments and Hedging Activities (FAS 133). In
addition, FAS 155 clarifies which interest-only and principalonly strips are not subject to FAS 133.

Extended Net Operating Loss Carryback Period
for Small Businesses
The American Recovery and Reinvestment Act of 2009,
which was enacted on February 17, 2009, permits qualifying
small businesses, including FDIC-insured institutions, to elect
a net operating loss carryback period of three, four, or five
years instead of the usual carryback period of two years for
any tax year ending in 2008 or, at the small business’s election, any tax year beginning in 2008. Under generally accepted accounting principles, institutions may not record the
effect of this tax change in their balance sheets and income
statements for financial and regulatory reporting purposes
until the period in which the law was enacted, i.e., the first
quarter of 2009.

Business Combinations and Noncontrolling (Minority)
Interests
In December 2007, the FASB issued Statement No. 141
(Revised), Business Combinations (FAS 141(R)), and
Statement No. 160, Noncontrolling Interests in Consolidated
Financial Statements (FAS 160). Under FAS 141(R), all business combinations, including combinations of mutual entities,
are to be accounted for by applying the acquisition method.
FAS 160 defines a noncontrolling interest, also called a
minority interest, as the portion of equity in an institution’s
subsidiary not attributable, directly or indirectly, to the parent
institution. FAS 160 requires an institution to clearly present
in its consolidated financial statements the equity ownership
in and results of its subsidiaries that are attributable to the
noncontrolling ownership interests in these subsidiaries. FAS
141(R) applies prospectively to business combinations for
which the acquisition date is on or after the beginning of the
first annual reporting period beginning on or after December
15, 2008. Similarly, FAS 160 is effective for fiscal years beginning on or after December 15, 2008. Thus, for institutions
FDIC Quarterly

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2009, Volume 3, No. 3

Quarterly Banking Profile
Purchased Impaired Loans and Debt Securities—Statement of
Position 03-3, Accounting for Certain Loans or Debt Securities
Acquired in a Transfer. The SOP applies to loans and debt
securities acquired in fiscal years beginning after December
15, 2004. In general, this Statement of Position applies to
“purchased impaired loans and debt securities” (i.e., loans and
debt securities that a bank has purchased, including those
acquired in a purchase business combination, when it is probable, at the purchase date, that the bank will be unable to
collect all contractually required payments receivable). Banks
must follow Statement of Position 03-3 for Call Report purposes. The SOP does not apply to the loans that a bank has
originated, prohibits “carrying over” or creation of valuation
allowances in the initial accounting, and any subsequent valuation allowances reflect only those losses incurred by the
investor after acquisition.
GNMA Buy-back Option—If an issuer of GNMA securities
has the option to buy back the loans that collateralize the
GNMA securities, when certain delinquency criteria are met,
FASB Statement No. 140 requires that loans with this buyback option must be brought back on the issuer’s books as
assets. The rebooking of GNMA loans is required regardless
of whether the issuer intends to exercise the buy-back option.
The banking agencies clarified in May 2005 that all GNMA
loans that are rebooked because of delinquency should be
reported as past due according to their contractual terms.
FASB Interpretation No. 46—The FASB issued Interpretation
No. 46, Consolidation of Variable Interest Entities, in January
2003 and revised it in December 2003. Generally, banks with
variable interests in variable interest entities created after
December 31, 2003, must consolidate them. The timing of
consolidation varies with certain situations with application
as late as 2005. The assets and liabilities of a consolidated
variable interest entity are reported on a line-by-line basis
according to the asset and liability categories shown on the
bank’s balance sheet, as well as related income items. Most
small banks are unlikely to have any “variable interests” in
variable interest entities.
FASB Interpretation No. 48 on Uncertain Tax Positions—FASB
Interpretation No. 48, Accounting for Uncertainty in Income
Taxes (FIN 48), was issued in June 2006 as an interpretation
of FASB Statement No. 109, Accounting for Income Taxes.
Under FIN 48, the term “tax position” refers to “a position in
a previously filed tax return or a position expected to be
taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities.” FIN 48 further states that a “tax position can result in a permanent
reduction of income taxes payable, a deferral of income taxes
otherwise currently payable to future years, or a change in the
expected realizability of deferred tax assets.” FIN 48 was originally issued effective for fiscal years beginning after December
15, 2006. Banks must adopt FIN 48 for Call Report purposes
in accordance with the interpretation’s effective date except
as follows. On December 31, 2008, the FASB decided to defer
the effective date of FIN 48 for eligible nonpublic enterprises
and to require those enterprises to adopt FIN 48 for annual
periods beginning after December 15, 2008. A nonpublic
enterprise under certain conditions is eligible for deferral,
even if it opted to issue interim or quarterly financial information in 2007 under earlier guidance that reflected the
adoption of FIN 48.

FDIC Quarterly

FASB Statement No. 123 (Revised 2004) and Share-Based
Payments—refer to previously published Quarterly Banking
Profile notes: http://www2.fdic.gov/qbp/2008dec/qbpnot.html
FASB Statement No. 133 Accounting for Derivative Instruments and
Hedging Activities—refer to previously published Quarterly
Banking Profile notes: http://www2.fdic.gov/qbp/2008dec/
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, and other
assets.
All other liabilities—bank’s liability on acceptances, limited-life
preferred stock, allowance for estimated off-balance-sheet
credit losses, fair market value of derivatives, and other
liabilities.
Assessment base—assessable deposits consist of DIF deposits
(deposits insured by the FDIC Deposit Insurance Fund) in
banks’ domestic offices with certain adjustments).
Assets securitized and sold—total outstanding principal balance
of assets securitized and sold with servicing retained or other
seller- provided credit enhancements.
Capital Purchase Program (CPP)—As announced in October
2008 under the TARP, the Treasury Department purchase of
noncumulative perpetual preferred stock and related warrants
that is treated as Tier 1 capital for regulatory capital purposes
is included in “Total equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued
by publicly-traded banks are reflected as well in “Surplus.”
Warrants to purchase common stock or noncumulative preferred stock of not-publicly-traded bank stock classified in a
bank’s balance sheet as “Other liabilities.”
Construction and development loans—includes loans for all
­property types under construction, as well as loans for land
acquisition and development.
Core capital—common equity capital plus noncumulative perpetual preferred stock plus minority interest in consolidated
subsidiaries, less goodwill and other ineligible intangible
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

23

2009, Volume 3, No. 3

the types of derivatives transactions and are not a quantification of market risk or credit risk. Notional amounts represent
the amounts used to calculate contractual cash flows to be
exchanged.
Derivatives credit equivalent amount—the fair value of the
derivative plus an additional amount for potential future
­credit exposure based on the notional amount, the remaining
maturity and type of the contract.
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.
Failed/assisted institutions—an institution fails when regulators
take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or
another healthy institution. This action may require the
FDIC to provide funds to cover losses. An institution is
defined as “assisted” when the institution remains open and
receives some insurance funds in order to continue operating.
FDIC Quarterly

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

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2009, Volume 3, No. 3

Quarterly Banking Profile
mortgage indebtedness, obligations under capitalized leases
and trading liabilities, less revaluation losses on assets held in
trading accounts.
Other real estate owned—primarily foreclosed property. Direct
and indirect investments in real estate ventures are excluded.
The amount is reflected net of valuation allowances. For
institutions that file a Thrift Financial Report (TFR), the
­valuation allowance subtracted also includes allowances for
other repossessed assets. Also, for TFR filers the components
of other real estate owned are reported gross of valuation
allowances.
Percent of institutions with earnings gains—the percent of institutions that increased their net income (or decreased their
losses) compared to the same period a year earlier.
“Problem” institutions—federal regulators assign a composite
rating to each financial institution, based upon an evaluation
of financial and operational criteria. The rating is based on a
scale of 1 to 5 in 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—net income (including gains or losses on
securities and extraordinary items) as a percentage of aver­age
total assets. The basic yardstick of bank profitability.
Return on equity—net income (including gains or losses on
securities and extraordinary items) as a percentage of average
total equity capital.
Risk-based capital groups—definition:
(Percent)

Well-Capitalized
Adequately
capitalized
Undercapitalized
Significantly
undercapitalized
Critically
undercapitalized

Tier 1
Risk-Based
Capital*

Total
Risk-Based
Capital*

Tier 1
Leverage

Tangible
Equity

≥10

and

≥6

and

≥5

–

≥8
≥6

and
and

≥4
≥3

and
and

≥4
≥3

–
–

<6

or

<3

or

<3

–

–

–

and

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. The following table shows the relationship of risk
categories (I, II, III, IV) to capital and supervisory groups as
well as the initial base assessment rates (in basis points),
effective April 1, 2009 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 riskbased 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

I
12–16 bps
II
22 bps

B

C

II
22 bps

III
32 bps

III
32 bps

IV
45 bps

Effective April 1, 2009, the initial base assessment rates are
12 to 45 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 most institutions in Risk
Category I are based on a combination of financial ratios and
CAMELS component ratings (the financial ratios method).
For large institutions in Risk Category I (generally those with
at least $10 billion in assets) that have long-term debt issuer
ratings, assessment rates are determined by equally weighting
the institution’s CAMELS component ratings, long-term debt
issuer ratings, and the financial ratios method assessment rate.
For all large Risk Category I institutions, additional risk factors are considered to determine whether assessment rates
should be adjusted. This additional information includes market data, financial performance measures, considerations of
the ability of an institution to withstand financial stress, and
loss severity indicators. Any adjustment is limited to no more
than one basis point.
Effective April 1, 2009, the FDIC introduced three possible
adjustments to an institution’s initial base assessment rate:
(1) a decrease of up to 5 basis points for long-term unsecured
debt and, for small institutions, a portion of Tier 1 capital;
(2) an increase not to exceed 50 percent of an institution’s
assessment rate before the increase for secured liabilities in
excess of 25 percent of domestic deposits; and (3) for nonRisk Category I institutions, an increase not to exceed 10
basis points for brokered deposits in excess of 10 percent of
domestic deposits. After applying all possible adjustments,

>2
≤2

* As a percentage of risk-weighted assets.

FDIC Quarterly

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2009, Volume 3, No. 3

minimum and maximum total base assessment rates for each
risk category are as follows:

generally equal to the total principal amount of the pool of
assets included in the securitization structure less the principal amount of those assets attributable to investors, i.e., in the
form of securities issued to investors.
Subchapter S Corporation—a Subchapter S corporation is treated as a pass-through entity, similar to a partnership, for federal income tax purposes. It is generally not subject to any
federal income taxes at the corporate level. This can have the
effect of reducing institutions’ reported taxes and increasing
their after-tax earnings.
Temporary Liquidity Guarantee Program (TLGP)—was approved
by the FDIC Board on October 13, 2008. The TLGP was
designed to help relieve the crisis in the credit markets by
giving banks access to liquidity during a time of global financial distress. Participation in the TLGP is voluntary. The
TLGP has two components:
Transaction Account Guarantee Program provides a full guarantee of non-interest-bearing deposit transaction accounts
above $250,000, at depository institutions that elected to
participate in the program. The guarantee is in effect until
December 31, 2009.
Debt Guarantee Program provides a full guarantee of senior
unsecured debt1 issued by eligible institutions after October
14, 2008. Initially, debt issued before June 30, 2009, and
maturing on or before June 30, 2012. could be guaranteed.
On March 17, 2009, the deadline for issuance under the
program was extended to October 31, 2009, and the expiration of the guarantee was set at the earlier of maturity of
the debt or December 31, 2012. Institutions eligible for participation in the debt guarantee program include insured
depository institutions, U.S. bank holding companies, certain U.S. savings and loan holding companies, and other
affiliates of an insured depository institution that the FDIC
designates as eligible entities.
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.)
Volatile liabilities—the sum of large-denomination time deposits, foreign-office deposits, federal funds purchased, securities
sold under agreements to repurchase, and other borrowings.
Yield on earning assets—total interest, dividend, and fee
income earned on loans and investments as a percentage of
average earning assets.

Total Base Assessment Rates*
Risk
Category
I

Risk
Category
II

Risk
Category
III

Risk
Category
IV

Initial base
assessment rate

12–16

22

32

45

Unsecured debt
adjustment

-5  – 0

-5–0

-5  – 0

-5– 0

Secured liability
adjustment

0  – 8

0  –11

0  –16

0  –22.5

Brokered deposit
adjustment

–

0  –10

0  –10

0  –10

Total base
assessment rate

7–24.0

17–43.0

27–58.0

40–77.5

*All amounts for all risk categories are in basis points annually. Total base rates that are
not the minimum or maximum rate will vary between these rates.

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. For institutions with long-term debt issuer
ratings, changes in ratings are effective for assessment purposes as of the date the change was announced.
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 will be collected
September 30, 2009, at the same time that the risk-based
assessment for the second quarter of 2009 is 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.
Risk-weighted assets—assets adjusted for risk-based capital definitions which include on-balance-sheet as well as off-­balancesheet 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 “heldto-maturity,” which are reported at amortized cost (book
value), and securities designated as “available-for-sale,”
reported at fair (market) value.
Securities gains (losses)—realized gains (losses) on held-to-­
maturity and available-for-sale securities, before adjustments
for income taxes. Thrift Financial Report (TFR) filers also
include gains (losses) on the sales of assets held for sale.
Seller’s interest in institution’s own securitizations—the reporting
bank’s ownership interest in loans and other assets that have
been securitized, except an interest that is a form of recourse
or other seller-provided credit enhancement. Seller’s interests
differ from the securities issued to investors by the securitization structure. The principal amount of a seller’s interest is
FDIC Quarterly

Senior unsecured debt generally includes term Federal funds
purchased, promissory notes, commercial paper, unsubordinated
unsecured notes, certificates of deposit (CDs) standing to the credit of
a bank, and U.S. dollar denominated bank deposits owed to an insured
depository institution.
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2009, Volume 3, No. 3