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Quarterly Banking Profile  Second Quarter 2010
INSURED INSTITUTION PERFORMANCE
Insured Institutions Reported $21.6 Billion in Net Income
■	 Provisions for Loan Losses Fell to Lowest Level in Two Years
■	 Asset Quality Indicators Improved During the Quarter
■	 Balance Sheets Continued to Shrink
■	

than $1 billion in assets) reported year-over-year
declines. Reductions were more prevalent among larger
institutions. More than half (56.2 percent) of institutions with assets greater than $1 billion had lower
provisions in the second quarter.

Quarterly Earnings Are Highest in Almost Three Years
Reductions in loan-loss provisions underscored improvement in asset quality indicators during second quarter
2010. The industry’s quarterly earnings of $21.6 billion
are up dramatically from the year-ago loss of $4.4 billion
and represent the highest quarterly earnings since third
quarter 2007. Almost two out of three institutions (65.5
percent) reported higher year-over-year quarterly net
income. The proportion of institutions reporting quarterly net losses remained high at 20 percent but was
down from more than 29 percent a year earlier.

Margins Improve at a Majority of Banks
Net interest income was $8.5 billion (8.6 percent) higher
than a year ago, as more than 70 percent of all institutions
reported year-over-year increases. Net interest margins
at almost 60 percent of institutions (58.6 per­ ent)
c
improved from a year earlier, as average funding costs
fell more rapidly than average asset yields. The magnitude of the increase in net interest income was largely
attributable to the application of Financial Accounting
Standards Board (FASB) Statements 166 and 167 in
2010 at a small number of institutions with significant
levels of securitized consumer loans; among other
things, the new rules require that revenues from securitized loan pools that had previously been included in
noninterest income be reflected in net interest income.1

Reduced Loan-Loss Provisions Boost Net Income
Insured institutions added $40.3 billion in provisions to
their loan-loss allowances in the second quarter. While
still high by historic standards, this is the smallest total
since the industry set aside $37.2 billion in first quarter
2008 and is $27.1 billion (40.2 percent) less than the
industry’s provisions in second quarter 2009. Fewer than
half of all institutions (41.3 percent) reported yearover-year reductions in quarterly loss provisions. Only
40 percent of community banks (institutions with less

1

Chart 1

See Notes to Users.

Chart 2
Net Income Continued to Recover

Two out of Three Institutions Reported
Improved Earnings

Billions of Dollars
60

Percent of Institutions with
Year-over-Year Increases in Quarterly Net Income
70

50
40

36.9 38.0 38.0 35.3 35.6 36.8

60

28.7

30

19.3

20
10

17.8
4.8 0.9

0.5

5.5

-4.4

-20

40
-1.7

30
20

Securities and Other Gains/Losses, Net
Net Operating Income

-30
-40

50

2.0

0
-10

21.6

10
-37.8

1

2 3
2006

FDIC Quarterly	

4

1

2 3 4
2007

1

2 3
2008

4

1

2 3
2009

4

0

1 2
2010

1

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2
2006
2008
2010
2005
2007
2009

2010, Volume 4, No. 3

one-to-four family residential mortgage loans were
down by $1.4 billion (16.0 percent). Credit card
charge-offs were $8.6 billion (86 percent) higher than
in second quarter 2009. Most, if not all, of this increase
was attributable to the inclusion of charge-offs on securitized credit card balances, which were not included in
reported charge-offs in previous years. The change in
reporting was the result of the application of FASB 166
and 167. In contrast, the $1.8 billion (107.2 percent)
year-over-year increase in charge-offs of nonfarm
nonresidential real estate loans reflected further deterioration in commercial real estate portfolios. Almost half
(49.1 percent) of insured institutions with more than
$1 billion in assets reported lower net charge-offs, while
only 43.6 percent of community banks reported yearover-year declines.

Noninterest Income Is Lower
Noninterest expense was $1.5 billion (1.5 percent) less
than in second quarter 2009, when insured institutions
paid $5.6 billion in a special assessment to bolster the
Deposit Insurance Fund. More than half of all institutions (52.1 percent) reported year-over-year reductions
in quarterly noninterest expense. Noninterest income
was $7.6 billion (11.0 percent) lower than a year
earlier, with some of the decline reflecting reporting
changes attributable to FASB 166 and 167. The
components of noninterest income that registered the
largest year-over-year declines were servicing income
(down $6.9 billion, or 63.9 percent) and gains on sales
of loans and other assets (down $4.4 billion, or 89
percent). Income from service charges on deposit
accounts was $752 million (7.1 percent) lower than a
year earlier at banks that filed Call Reports. This is the
seventh consecutive quarter that service charge income
has declined year-over-year.

Noncurrent Loans Post First Decline in
More than Four Years

Net charge-offs totaled $49 billion in the second quarter, a $214-million (0.4 percent) decline from a year
earlier and the first year-over-year decline since fourth
quarter 2006. Charge-offs were lower than a year ago in
most major loan categories except for credit cards and
real estate loans secured by nonfarm nonresidential
properties. Charge-offs on loans to commercial and
industrial (C&I) borrowers were $3.1 billion (37.0
percent) lower than a year ago, while charge-offs on
real estate construction and development (C&D) loans
were $2.7 billion (34.6 percent) lower. Charge-offs of

The amount of loans and leases that were noncurrent
(90 days or more past due or in nonaccrual status)
declined by $19.6 billion (4.8 percent) during the
second quarter. This is the first quarterly decline in
noncurrent loans since first quarter 2006. Noncurrent
levels declined in most major loan categories during the
quarter. The sole exception was nonfarm nonresidential
real estate loans, where noncurrents increased by $547
million (1.2 percent), the smallest quarterly increase in
three years. The largest reduction in noncurrent loans
in the quarter occurred in real estate C&D loans, where
noncurrents fell by $5.9 billion (8.3 percent). This is
the third consecutive quarter that noncurrent C&D
loans have declined. Noncurrent C&I loans also

Chart 3

Chart 4

Charge-Offs Fall for First Time Since 2006

Margins Improved at Community Banks

Lower Loan-Loss Provisions Helped Lift Profits

Quarterly Net Interest Margin
(Percent)
4.5

Year-over-Year Change in Quarterly Earnings
(Billions of Dollars)
50
Positive Factors

Assets < $1 Billion

45

$1.5

Decline in Noninterest Expenses

40

$3.1
$3.4

Increase in Realized Gains on Securities
Decline in Extraordinary Losses

$8.5

Increase in Net
Interest Income

35
30

4.0

3.5

25

Negative Factors

20
15

3.80
3.76

$27.1 Decline in Loss

10
5

Provisions

$7.6
$10.0

3.0

Decline in
Noninterest Income
Increase in
Income Taxes

Assets > $1 Billion
2.5

0

FDIC Quarterly	

2

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2
2005
2006
2007
2008
2009
2010

2010, Volume 4, No. 3

Quarterly Banking Profile
declined for a third straight quarter, falling by $2.7
billion (7.3 percent), while noncurrent residential
mortgage loans declined by $4.7 billion (2.5 percent)
and noncurrent credit cards fell by $4.2 billion (19
percent). Slightly fewer than half of all institutions
(48.9 percent) reported declines in their noncurrent
loan balances during the quarter. Noncurrent loan
balances fell by 5.3 percent at institutions with more
than $1 billion in assets and rose by 0.3 percent at
community banks.

Rising Securities Values Contribute to Equity
Capital Growth
Bank equity capital increased by $27.4 billion (1.9
percent), as retained earnings contributed $8.7 billion
and appreciation of securities holdings added $13.7
billion. More than half of all institutions (52.7 percent)
increased their leverage capital ratios during the quarter, while an even larger percentage (57.6 percent)
increased their total risk-based capital ratios. Insured
institutions paid $12.9 billion in dividends in the
second quarter, more than double the $6.1 billion they
paid a year earlier.

Reserves Fall as Large Banks Reduce Loan-Loss
Provisions
Total loan-loss reserves of insured institutions fell for
the first time since fourth quarter 2006, declining by
$11.8 billion (4.5 percent), as net charge-offs of $49
billion exceeded loss provisions of $40.3 billion. Almost
two out of three institutions (61.7 percent) increased
their loss reserves in the second quarter, but a number
of large banks reduced their loss provisions, producing
net declines in their reserve balances. In particular,
some institutions that converted equity capital into
reserves in the first quarter in accordance with the
requirements of FASB 166 and 167 reported lower
provisioning in the second quarter. Although the industry’s ratio of reserves to total loans fell from 3.50
percent to 3.40 percent during the quarter, it is still the
second-highest level for this ratio in the 63 years for
which data are available. The industry’s “coverage
ratio” of reserves to noncurrent loans improved for a
second consecutive quarter, from 64.9 percent to 65.1
percent, as the reduction in noncurrent loans slightly
outpaced the decline in loss reserves.

Loan Balances Continue to Decline

Chart 5

Chart 6

Industry assets declined for the fifth time in the past six
quarters. Total assets fell by $136.2 billion (1 percent),
as net loan and lease balances declined by $95.7 billion
(1.3 percent). All major loan categories had reduced
balances during the quarter. Real estate C&D loans
fell by $34.7 billion (8.3 percent), credit card balances
dropped by $17.6 billion (2.5 percent), residential mortgage loans declined by $13.2 billion (0.7 percent), and
C&I loans were down $12.1 billion (1 percent). Loans
to small businesses and farms declined by $13.3 billion
(1.8 percent) during the quarter, while loans to larger
businesses and farms fell by $5.3 billion (0.4 percent).
Balances at Federal Reserve banks declined by $49
billion (8.2 percent) during the quarter at banks that
filed Call Reports. Intangible assets fell by $15.1 billion
(3.6 percent), led by a $13.9 billion (18.7 percent)
decline in mortgage servicing assets. The few areas of
asset growth in the second quarter included federal

Asset Quality Indicators Are Showing Signs
of a Turnaround

Institutions Are Reducing the Riskiness of
Their Asset Portfolios

Risk-Weighted Assets to Total Assets
(Percent)
9/30/2000
78

Percent of Total Loans & Leases
6
5
4

Noncurrent Loan Rate

6/30/2007

76
74
72

Quarterly Net Charge-off Rate

70

3

68
2

66
64

1

62
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

FDIC Quarterly	

60
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

3

2010, Volume 4, No. 3

funds sold and securities purchased under resale agreements (up $11.3 billion, or 2.7 percent), and U.S.
Treas­ ry securities (up $8.1 billion, or 5.2 percent). The
u
industry continued to reduce holdings of riskier assets;
the ratio of risk-weighted assets (as defined for riskbased capital purposes) to total assets fell from 69.4
percent to 69.1 percent during the quarter. This is the
lowest level for this ratio since the second quarter
of 1995.

No New Charters Were Added During the Quarter
The number of FDIC-insured institutions reporting
financial results fell by 104 in the second quarter, from
7,934 to 7,830. This is the first time in almost ten years
that the number of reporting institutions has fallen by
more than 100 in a single quarter (the number declined
by 113 in third quarter 2000). During the quarter, 57
institutions were absorbed by mergers into other charters, including 29 charters that were consolidated as
part of a single corporate reorganization, and 45 insured
institutions failed. For the first time in the 38 years for
which data are available, no new insured institutions
were added during the quarter. The number of institutions on the FDIC’s “Problem List” increased from 775
to 829 during the quarter. Total assets of “problem”
institutions fell, from $431 billion to $403 billion.

Banks Reduce Nondeposit Funding
Deposits fell for the second quarter in a row, declining
by $57.8 billion (0.6 percent). Interest-bearing deposits
in domestic offices were down by $45.4 billion (0.7
percent), while noninterest-bearing domestic deposits
increased by $20.8 billion (1.4 percent). Deposits in
foreign offices declined by $33.2 billion (2.2 percent).
Nondeposit liabilities fell by $105.4 billion (3.9 percent),
as institutions reduced Federal Home Loan Bank
advances by $35 billion (7.3 percent) and short-term
unsecured borrowings by $48.2 billion (23 percent).

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

Chart 8

Chart 7

The Number of “Problem” Institutions Is Highest
in 17 Years

Banks Are Relying Less on Nondeposit Liabilities
Twelve-Month Growth Rate
(Percent)

Number of Institutions
900

30
20

600

0

552

500

-20

416

400

Nondeposit Liabilities
Insured Deposits
Uninsured Deposits

-10

300

252

200

117
100 48 50 47 50 53 61 65 76 90

-30

0

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2
2003
2004
2005
2006
2007
2008
2009 2010

FDIC Quarterly	

4

829

702

700

10

-40

775

800

1

2 3
2006

4

1

2 3
2007

4

1

305

171

2 3
2008

4

1

2 3
2009

4

1 2
2010

2010, Volume 4, 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 �������������������������������������������������������������������������������������
�

2010**
0.61
5.48
8.77
3.31
2.74
-0.60
3.81
567.08
7,830
6,676
1,154
20.32
829
$403
86
0

2009**
0.03
0.30
8.24
2.77
2.25
0.00
3.43
-77.21
8,195
6,995
1,200
27.70
416
$300
45
0

2009
0.07
0.71
8.63
3.36
2.50
-5.30
3.47
50.78
8,012
6,839
1,173
30.68
702
$403
140
8

2008
0.03
0.35
7.47
1.91
1.29
6.19
3.16
-90.70
8,305
7,086
1,219
24.88
252
$159
25
5

2007
0.81
7.75
7.97
0.95
0.59
9.88
3.29
-27.59
8,534
7,283
1,251
12.09
76
$22
3
0

2006
1.28
12.30
8.22
0.54
0.39
9.03
3.31
8.52
8,680
7,401
1,279
7.94
50
$8
0
0

2005
1.28
12.43
8.24
0.50
0.49
7.64
3.47
11.40
8,833
7,526
1,307
6.22
52
$7
0
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
2010
7,830
2,033,662

1st Quarter
2010
7,934
2,027,247

2nd Quarter
2009
8,195
2,093,066

%Change
09Q2-10Q2
-4.5
-2.8

$13,220,551
4,336,825
1,874,335
1,081,004
383,313
654,450
1,174,939
1,359,543
699,404
58,270
468,562
2,794
7,395,345
251,290
7,144,055
2,527,735
49,285
409,757
3,089,719

$13,356,798
4,401,538
1,887,551
1,090,644
418,017
659,871
1,187,070
1,380,445
716,998
55,600
480,905
2,711
7,502,849
263,065
7,239,783
2,531,647
46,265
424,879
3,114,224

$13,300,007
4,651,638
2,012,537
1,086,496
535,733
672,906
1,364,713
1,037,135
398,233
58,352
516,323
2,903
7,625,258
211,157
7,414,102
2,336,957
33,928
431,395
3,083,625

-0.6
-6.8
-6.9
-0.5
-28.5
-2.7
-13.9
31.1
75.6
-0.1
-9.3
-3.7
-3.0
19.0
-3.6
8.2
45.3
-5.0
0.2

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

13,220,551
9,140,980
7,667,695
1,473,285
1,911,837
150,986
510,148
1,506,599
1,487,435

13,356,798
9,198,770
7,692,326
1,506,444
2,051,791
150,540
476,035
1,479,662
1,459,993

13,300,007
9,021,146
7,555,214
1,465,932
2,159,362
168,125
529,986
1,421,388
1,403,711

-0.6
1.3
1.5
0.5
-11.5
-10.2
-3.7
6.0
6.0

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

125,191
385,805
71,614
1,381,160
11,389,950
445,400
6,007,195
17,606,001
1,411,808
225,433,522

141,492
405,395
64,412
1,386,427
11,554,019
480,364
6,104,579
18,096,538
1,413,926
218,068,203

141,247
331,899
46,577
1,365,416
11,436,792
634,642
6,305,132
16,975,455
1,865,371
208,656,901

-11.4
16.2
53.8
1.2
-0.4
-29.8
-4.7
3.7
-24.3
8.0

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

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

First Half
2010
$273,091
56,617
216,474
91,145
122,275
192,790
3,737
17,928
-174
40,449
40,080
100,747
17,317
22,763
37,904

First Half
2009
$279,906
81,498
198,409
128,197
136,630
196,686
839
4,900
-3,655
2,440
2,022
86,723
13,374
-11,352
5,682

*** Call Report filers only.

FDIC Quarterly	

%Change
-2.4
-30.5
9.1
-28.9
-10.5
-2.0
345.7
265.9
N/M
N/M
N/M
16.2
29.5
N/M
567.1

2nd Quarter
2010
$135,182
27,648
107,534
40,303
60,865
97,930
2,148
10,307
-232
21,775
21,597
48,959
12,934
8,662
20,487

2nd Quarter
2009
$137,832
38,786
99,047
67,370
68,419
99,449
-927
315
-3,624
-4,221
-4,376
49,173
6,139
-10,515
-161

%Change
09Q2-10Q2
-1.9
-28.7
8.6
-40.2
-11.0
-1.5
N/M
N/M
N/M
N/M
N/M
-0.4
110.7
N/M
N/M

N/M - Not Meaningful.

5

2010, Volume 4, No. 3

TABLE III-A.  Second Quarter 2010, All FDIC-Insured Institutions
Asset Concentration Groups*
Second Quarter
All Insured
	
(The way it is...)
Institutions
Number of institutions reporting����������������������
�
7,830
	
Commercial banks������������������������������������
�
6,676
	
Savings institutions�����������������������������������
1,154
Total assets (in billions)������������������������������������
$13,220.6
	
Commercial banks������������������������������������
�
11,969.0
	
Savings institutions�����������������������������������
1,251.5
Total deposits (in billions) ��������������������������������
�
9,141.0
	
Commercial banks������������������������������������
�
8,242.6
	
Savings institutions�����������������������������������
898.3
Bank net income (in millions)���������������������������
21,597
	
Commercial banks������������������������������������
�
19,706
	
Savings institutions�����������������������������������
1,891
Performance Ratios (annualized, %)
Yield on earning assets������������������������������������
Cost of funding earning assets������������������������
	
Net interest margin������������������������������������
Noninterest income to assets��������������������������
�
Noninterest expense to assets������������������������
�
Loan and lease loss provision to assets ���������
�
Net operating income to assets�����������������������
Pretax return on assets������������������������������������
Return on assets����������������������������������������������
�
Return on equity�����������������������������������������������
Net charge-offs to loans and leases����������������
Loan and lease loss provision to
	
net charge-offs������������������������������������������
Efficiency ratio��������������������������������������������������
% of unprofitable institutions ���������������������������
�
% of institutions with earnings gains���������������
�
Structural Changes
	
New charters���������������������������������������������
	
Institutions absorbed by mergers�������������
	
Failed institutions��������������������������������������

Credit
Card
International Agricultural Commercial
Banks
Banks
Banks
Lenders
20
4
1,579
4,265
16
4
1,575
3,809
4
0
4
456
$718.5
$3,059.4
$189.0
$4,358.4
694.4
3,059.4
188.5
3,894.1
24.1
0.0
0.5
464.3
272.4
1,980.5
155.0
3,323.2
257.9
1,980.5
154.6
3,002.5
14.4
0.0
0.4
320.6
2,582
7,737
489
2,271
2,277
7,737
488
1,762
305
0
1
508

Mortgage Consumer
Lenders
Lenders
745
83
195
67
550
16
$794.9
$96.8
203.4
51.1
591.5
45.8
530.1
80.6
99.0
40.1
431.2
40.5
1,287
304
547
171
740
133

Other
Specialized
All Other
<$1 Billion
<$1 Billion
293
779
263
698
30
81
$38.1
$124.4
33.2
102.0
4.8
22.4
28.6
102.7
25.2
85.0
3.5
17.7
145
145
91
241
54
-96

All Other
>$1 Billion
62
49
13
$3,841.1
3,743.0
98.1
2,668.0
2,597.8
70.1
6,638
6,392
246

4.72
0.97
3.76
1.84
2.95
1.22
0.62
0.96
0.65
5.86
2.64

12.58
1.40
11.19
2.90
4.14
6.37
1.30
2.22
1.41
8.74
11.60

3.45
0.73
2.72
2.23
2.81
0.44
0.92
1.39
1.00
11.05
1.81

5.30
1.35
3.95
0.66
2.65
0.47
1.01
1.20
1.04
9.23
0.65

4.91
1.15
3.76
1.37
3.08
1.32
0.16
0.37
0.21
1.91
1.96

4.53
1.44
3.09
1.04
2.10
0.69
0.71
1.08
0.65
6.56
1.13

5.77
1.27
4.50
1.98
2.68
1.55
1.27
2.00
1.27
11.98
2.20

3.85
1.03
2.82
6.82
7.22
0.17
1.45
2.05
1.53
8.48
0.61

4.99
1.28
3.71
0.94
3.60
0.31
0.41
0.49
0.47
4.12
0.46

3.97
0.70
3.27
2.04
2.84
0.92
0.71
1.00
0.70
5.65
1.90

82.32
56.47
20.22
65.53

64.87
30.83
15.00
85.00

68.46
61.34
0.00
100.00

114.10
61.25
8.36
67.19

99.52
63.59
28.32
64.97

102.77
53.05
14.50
70.34

93.43
42.51
7.23
73.49

107.20
76.70
13.65
53.58

119.58
71.01
10.65
62.90

91.91
57.61
4.84
74.19

0
57
45
 

0
0
0

0
0
0

0
8
1

0
46
42

0
0
0

0
0
0

0
0
0

0
1
1

0
2
1

PRIOR Second QUARTERS
	
(The way it was...)
Return on assets (%)������������������������������� 2009
	
������������������������������������� 2007
	
������������������������������������� 2005

-0.13
1.22
1.28

-0.73
3.34
3.18

-0.54
0.99
0.71

0.78
1.26
1.35

-0.20
1.18
1.35

0.56
0.91
1.22

0.64
3.04
1.40

1.28
2.31
1.60

0.70
1.10
1.09

0.29
1.26
1.37

Net charge-offs to loans & leases (%)���� 2009
	
������������������������������������� 2007
	
������������������������������������� 2005

2.56
0.49
0.42

10.78
3.89
4.18

3.07
0.60
0.66

0.61
0.15
0.15

2.07
0.28
0.21

1.27
0.25
0.09

2.80
1.85
1.11

0.71
0.25
0.40

0.51
0.18
0.34

2.31
0.32
0.17

 

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

FDIC Quarterly	

6

2010, Volume 4, No. 3

Quarterly Banking Profile
TABLE III-A.  Second Quarter 2010, All FDIC-Insured Institutions
Asset Size Distribution
Second QUARTER
All Insured
	
(The way it is...)
Institutions
Number of institutions reporting����������������������������
�
7,830
	
Commercial banks������������������������������������������
�
6,676
	
Savings institutions�����������������������������������������
1,154
Total assets (in billions)������������������������������������������ $13,220.6
	
Commercial banks������������������������������������������
�
11,969.0
	
Savings institutions�����������������������������������������
1,251.5
Total deposits (in billions) ��������������������������������������
�
9,141.0
	
Commercial banks������������������������������������������
�
8,242.6
	
Savings institutions�����������������������������������������
898.3
Bank net income (in millions)���������������������������������
21,597
	
Commercial banks������������������������������������������
�
19,706
	
Savings institutions�����������������������������������������
1,891

Geographic Regions*

Less than
$100
$1 Billion
Greater
$100
Million to
to
than
Million
$1 Billion $10 Billion $10 Billion New York
2,745
4,425
555
105
969
2,434
3,737
421
84
506
311
688
134
21
463
$154.6
$1,325.1
$1,428.5 $10,312.3
$2,692.6
137.5
1,083.5
1,086.8
9,661.2
2,017.0
17.1
241.6
341.7
651.1
675.6
129.2
1,089.2
1,083.1
6,839.4
1,743.4
115.8
899.8
823.6
6,403.5
1,271.1
13.5
189.5
259.5
435.9
472.4
217
948
506
19,926
5,000
170
877
234
18,424
4,069
47
70
272
1,502
932

Atlanta
1,064
939
125
$2,987.3
2,864.2
123.2
2,099.3
2,008.4
90.9
1,649
1,683
-34

Chicago
1,619
1,332
287
$2,866.0
2,738.1
127.9
1,951.8
1,856.5
95.3
5,538
5,557
-20

Kansas
City
1,852
1,754
98
$1,656.3
1,607.8
48.5
1,207.3
1,170.4
36.9
3,029
3,013
15

San
Dallas
Francisco
1,643
683
1,524
621
119
62
$787.6
$2,230.7
695.3
2,046.6
92.3
184.1
617.5
1,521.6
543.0
1,393.1
74.5
128.5
1,419
4,962
1,155
4,228
264
734

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���������������������
�

4.72
0.97
3.76
1.84
2.95
1.22
0.62
0.96
0.65
5.86
2.64
82.32
56.47
20.22
65.53

5.26
1.34
3.93
1.38
3.78
0.49
0.52
0.73
0.56
4.64
0.69
115.56
76.04
20.62
62.11

5.21
1.43
3.79
0.94
3.21
0.83
0.24
0.42
0.29
2.82
1.12
110.74
71.46
19.59
67.10

4.95
1.29
3.66
1.19
2.93
1.24
0.14
0.33
0.14
1.29
1.91
100.47
63.10
23.96
67.93

4.61
0.85
3.77
2.05
2.91
1.27
0.73
1.12
0.77
6.85
3.03
78.62
53.81
16.19
76.19

5.38
1.13
4.25
1.71
2.79
1.53
0.73
1.10
0.75
5.83
4.09
66.46
49.75
15.58
75.13

4.38
0.92
3.46
1.58
2.83
1.32
0.19
0.38
0.22
1.95
2.55
92.10
60.91
39.57
61.65

3.86
0.82
3.04
2.08
3.01
0.75
0.66
1.10
0.76
8.57
1.90
80.96
62.84
17.67
63.62

5.81
0.84
4.98
2.19
3.55
1.89
0.74
1.08
0.73
6.31
2.93
92.73
51.79
15.12
66.09

4.95
1.03
3.91
1.66
3.44
0.86
0.69
0.94
0.72
6.87
1.24
105.35
65.80
13.27
63.48

4.62
1.09
3.52
1.80
2.63
0.93
0.88
1.32
0.89
7.71
2.09
86.34
53.06
33.24
65.89

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

0
57
45

0
16
9

0
31
26

0
10
9

0
0
1

0
3
4

0
30
11

0
5
12

0
13
6

0
5
2

0
1
10

PRIOR Second QUARTERS
	
(The way it was…)
Return on assets (%)������������������������������������� 2009
	
��������������������������������������������2007
	
��������������������������������������������2005

-0.13
1.22
1.28

0.04
0.85
1.09

-0.17
1.14
1.24

-0.83
1.11
1.35

-0.03
1.25
1.28

-0.56
1.05
1.29

-0.05
1.25
1.34

0.18
1.05
0.93

0.74
1.54
1.55

0.21
1.15
1.28

-0.71
1.41
1.63

Net charge-offs to loans & leases (%)���������� 2009
	
��������������������������������������������2007
	
��������������������������������������������2005

2.56
0.49
0.42

0.91
0.14
0.19

1.14
0.18
0.19

2.23
0.33
0.24

2.89
0.57
0.51

2.91
0.84
0.69

2.26
0.26
0.18

2.40
0.37
0.26

2.56
0.63
0.51

1.32
0.23
0.23

3.39
0.59
0.63

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

FDIC Quarterly	

7

2010, Volume 4, No. 3

TABLE IV-A.  First Half 2010, All FDIC-Insured Institutions
Asset Concentration Groups*
First Half
All Insured
	
(The way it is...)
Institutions
�
7,830
Number of institutions reporting����������������������������������������
	
Commercial banks������������������������������������������������������
�
6,676
	
Savings institutions�����������������������������������������������������
1,154
$13,220.6
Total assets (in billions)������������������������������������������������������
	
Commercial banks������������������������������������������������������
�
11,969.0
	
Savings institutions�����������������������������������������������������
1,251.5
Total deposits (in billions) ��������������������������������������������������
�
9,141.0
	
Commercial banks������������������������������������������������������
�
8,242.6
	
Savings institutions�����������������������������������������������������
898.3
Bank net income (in millions)���������������������������������������������
40,080
	
Commercial banks������������������������������������������������������
�
36,038
	
Savings institutions�����������������������������������������������������
4,042
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
20
4
1,579
4,265
745
83
293
779
62
16
4
1,575
3,809
195
67
263
698
49
4
0
4
456
550
16
30
81
13
$718.5
$3,059.4
$189.0
$4,358.4
$794.9
$96.8
$38.1
$124.4
$3,841.1
694.4
3,059.4
188.5
3,894.1
203.4
51.1
33.2
102.0
3,743.0
24.1
0.0
0.5
464.3
591.5
45.8
4.8
22.4
98.1
272.4
1,980.5
155.0
3,323.2
530.1
80.6
28.6
102.7
2,668.0
257.9
1,980.5
154.6
3,002.5
99.0
40.1
25.2
85.0
2,597.8
14.4
0.0
0.4
320.6
431.2
40.5
3.5
17.7
70.1
3,647
13,579
945
4,765
2,851
648
269
397
12,979
3,128
13,579
943
3,816
1,398
418
164
473
12,119
520
0
1
949
1,453
230
105
-76
859

4.81
1.00
3.81
1.85
2.92
1.38
0.57
0.88
0.61
5.48
2.74
90.47
55.37
20.32
61.07

14.65
1.65
12.99
3.07
4.49
7.97
1.03
1.72
1.11
6.02
13.44
73.72
29.79
10.00
90.00

3.52
0.73
2.79
2.22
2.84
0.65
0.80
1.19
0.87
9.79
2.16
85.72
61.31
0.00
100.00

5.28
1.37
3.91
0.63
2.64
0.44
0.98
1.16
1.01
9.03
0.53
128.21
62.17
7.92
61.18

4.91
1.18
3.73
1.35
3.01
1.35
0.18
0.35
0.22
2.03
1.89
104.77
63.06
28.82
61.17

4.55
1.47
3.08
0.97
1.96
0.72
0.74
1.14
0.72
7.41
1.16
104.29
50.79
14.77
66.31

5.89
1.33
4.56
1.97
2.68
1.45
1.38
2.17
1.38
13.00
2.39
78.94
42.14
6.02
75.90

3.87
1.05
2.82
6.94
7.40
0.19
1.39
1.94
1.43
7.91
0.56
127.94
77.52
14.68
49.49

5.02
1.31
3.70
0.92
3.31
0.30
0.60
0.75
0.64
5.70
0.43
125.51
70.61
9.76
55.97

4.02
0.73
3.29
2.15
2.80
1.11
0.69
0.99
0.68
5.57
2.09
100.25
55.20
1.61
75.81

86.15

86.18

83.97

91.76

88.31

93.23

94.43

89.24

91.69

83.29

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

3.40
65.13

9.87
377.17

4.04
59.77

1.55
78.84

2.60
55.95

1.51
33.05

2.85
227.76

1.79
82.92

1.42
67.10

2.94
44.45

3.31
11.25
8.77
12.44
15.09
78.15
54.04
58.00

2.18
16.62
11.53
13.36
16.39
198.47
75.24
33.66

2.61
9.27
7.24
12.22
15.34
52.82
34.19
31.95

1.70
11.33
10.13
14.10
15.24
77.61
63.64
82.00

3.90
11.01
9.09
11.78
14.01
86.75
66.14
74.74

3.03
10.02
9.25
19.00
20.05
87.40
58.29
66.61

1.04
10.65
10.37
14.12
15.87
87.49
72.82
82.19

0.79
18.34
16.11
35.95
36.86
34.25
25.77
74.83

1.59
11.37
10.63
17.75
18.90
66.42
54.84
82.56

3.70
12.29
8.79
11.84
14.97
72.81
50.57
59.77

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

3
94
86

0
0
0

0
0
0

0
12
2

2
74
79

0
0
2

0
0
0

0
0
1

0
2
1

1
6
1

PRIOR first halves
	
(The way it was…)
Number of Institutions������������������������������������������������2009
	
��������������������������������������������������������2007
	
��������������������������������������������������������2005

8,195
8,614
8,868

24
26
29

5
4
6

1,551
1,645
1,731

4,637
4,731
4,545

808
805
953

80
118
118

294
377
422

743
851
1,005

53
57
59

Total assets (in billions)����������������������������������������������2009
	
��������������������������������������������������������2007
	
��������������������������������������������������������2005

$13,300.0
12,261.4
10,474.4

$484.8
395.0
372.3

$3,204.0
2,544.3
1,927.3

$170.1
155.6
139.0

$5,947.0
4,789.0
3,648.1

$933.4
1,551.0
1,642.0

$84.0
117.7
146.2

$36.0
42.4
49.9

$101.7
113.1
127.5

$2,338.9
2,553.3
2,422.2

Return on assets (%)��������������������������������������������������2009
	
��������������������������������������������������������2007
	
��������������������������������������������������������2005

0.03
1.21
1.31

-1.04
3.58
3.18

0.05
0.96
0.81

0.88
1.22
1.31

-0.18
1.15
1.34

0.57
0.91
1.21

0.28
2.54
1.35

0.73
2.23
1.58

0.79
1.07
1.14

0.42
1.27
1.44

Net charge-offs to loans & leases (%)�����������������������2009
	
��������������������������������������������������������2007
	
��������������������������������������������������������2005

2.25
0.47
0.44

9.57
3.84
4.26

2.73
0.58
0.70

0.47
0.15
0.13

1.76
0.25
0.21

1.13
0.24
0.09

2.71
1.86
1.16

0.81
0.23
0.31

0.42
0.16
0.29

2.04
0.31
0.17

Noncurrent assets plus
	
OREO to assets (%)��������������������������������������������2009
	
��������������������������������������������������������2007
	
��������������������������������������������������������2005

2.77
0.62
0.48

2.45
1.28
1.17

2.25
0.41
0.53

1.45
0.81
0.68

3.36
0.70
0.48

2.96
0.81
0.41

1.14
0.63
0.44

0.72
0.23
0.26

1.30
0.60
0.60

2.23
0.46
0.37

Equity capital ratio (%)�����������������������������������������������2009
	
��������������������������������������������������������2007
	
��������������������������������������������������������2005

10.55
10.43
10.38

24.51
23.96
21.70

8.42
7.64
8.46

11.08
11.13
10.96

10.54
10.68
10.09

9.47
10.22
10.89

9.95
13.73
12.08

16.59
20.98
18.40

11.36
11.10
11.06

10.91
10.39
9.91

*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

2010, Volume 4, No. 3

Quarterly Banking Profile
TABLE IV-A.  First Half 2010, All FDIC-Insured Institutions
Asset Size Distribution
First Half
All Insured Less than
	
(The way it is...)
Institutions $100 Million
�
7,830
2,745
Number of institutions reporting��������������������
	
Commercial banks����������������������������������
�
6,676
2,434
	
Savings institutions���������������������������������
1,154
311
$13,220.6
$154.6
Total assets (in billions)����������������������������������
	
Commercial banks����������������������������������
�
11,969.0
137.5
	
Savings institutions���������������������������������
1,251.5
17.1
Total deposits (in billions) ������������������������������
�
9,141.0
129.2
	
Commercial banks����������������������������������
�
8,242.6
115.8
	
Savings institutions���������������������������������
898.3
13.5
Bank net income (in millions)�������������������������
40,080
429
	
Commercial banks����������������������������������
�
36,038
342
	
Savings institutions���������������������������������
4,042
87
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
4,425
555
105
969
3,737
421
84
506
688
134
21
463
$1,325.1
$1,428.5
$10,312.3
$2,692.6
1,083.5
1,086.8
9,661.2
2,017.0
241.6
341.7
651.1
675.6
1,089.2
1,083.1
6,839.4
1,743.4
899.8
823.6
6,403.5
1,271.1
189.5
259.5
435.9
472.4
2,398
1,657
35,596
8,892
2,108
876
32,711
7,056
290
781
2,884
1,836

Atlanta
Chicago
1,064
1,619
939
1,332
125
287
$2,987.3 $2,866.0
2,864.2
2,738.1
123.2
127.9
2,099.3
1,951.8
2,008.4
1,856.5
90.9
95.3
4,063
9,336
4,013
9,402
50
-66

Kansas
City
1,852
1,754
98
$1,656.3
1,607.8
48.5
1,207.3
1,170.4
36.9
5,760
5,646
114

San
Dallas
Francisco
1,643
683
1,524
621
119
62
$787.6
$2,230.7
695.3
2,046.6
92.3
184.1
617.5
1,521.6
543.0
1,393.1
74.5
128.5
2,873
9,155
2,436
7,484
437
1,671

4.81
1.00
3.81
1.85
2.92
1.38
0.57
0.88
0.61
5.48
2.74

5.27
1.37
3.89
1.39
3.79
0.47
0.52
0.72
0.56
4.62
0.65

5.23
1.47
3.76
0.91
3.15
0.76
0.31
0.49
0.36
3.60
0.98

4.98
1.33
3.64
1.22
2.87
1.23
0.21
0.44
0.23
2.14
1.76

4.72
0.88
3.84
2.07
2.89
1.50
0.66
0.99
0.69
6.16
3.23

5.55
1.19
4.37
1.72
2.81
1.71
0.66
1.00
0.67
5.20
4.10

4.47
0.95
3.52
1.70
2.78
1.48
0.25
0.42
0.27
2.42
2.63

3.91
0.84
3.07
2.06
3.03
0.94
0.55
0.88
0.64
7.28
2.11

5.91
0.88
5.03
2.26
3.48
2.10
0.70
1.03
0.69
6.00
3.13

4.94
1.05
3.89
1.53
3.31
0.85
0.68
0.94
0.73
7.01
1.22

4.66
1.10
3.56
1.76
2.57
1.11
0.81
1.22
0.82
7.21
2.22

90.47
55.37
20.32
61.07

118.93
76.51
20.95
58.11

115.31
71.58
19.73
62.01

107.69
61.76
22.52
66.31

87.56
52.63
17.14
71.43

75.20
49.18
15.38
73.27

98.78
58.31
40.60
57.52

90.88
63.21
17.36
57.88

98.31
50.09
13.77
60.53

105.44
65.18
13.15
59.10

96.89
51.69
37.77
63.10

86.15

91.10

91.40

90.36

84.82

86.12

83.92

86.22

87.01

90.17

87.04

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�����������������

3.40
65.13

1.64
61.60

1.82
50.66

2.32
51.75

3.86
68.42

3.77
102.33

3.27
51.82

3.29
57.87

3.78
63.36

2.14
56.93

3.41
68.83

3.31
11.25
8.77
12.44
15.09
78.15
54.04
58.00

2.37
12.20
11.56
17.78
18.89
72.58
60.65
83.56

3.38
10.23
9.60
13.73
14.95
79.87
65.65
82.15

3.62
11.08
9.60
13.91
15.30
82.94
62.89
75.27

3.28
11.39
8.50
12.00
15.02
77.23
51.22
52.12

2.22
12.95
9.73
13.88
16.23
83.01
53.75
57.43

4.04
11.44
8.00
11.21
14.40
77.20
54.25
62.57

3.17
9.15
7.28
10.97
14.30
70.12
47.76
53.85

4.62
11.55
9.12
11.19
13.81
90.62
66.05
66.98

3.16
10.59
9.46
13.23
14.95
81.77
64.10
77.86

2.93
11.65
10.12
15.15
16.89
72.85
49.70
44.20

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

3
94
86

0
33
20

1
48
49

2
12
16

0
1
1

0
7
7

2
34
25

0
9
16

0
22
11

1
11
5

0
11
22

PRIOR first halves
	
(The way it was…)
Number of Institutions��������������������������� 2009
	
����������������������������������� 2007
	
����������������������������������� 2005

8,195
8,614
8,868

3,013
3,582
3,996

4,484
4,371
4,266

582
538
492

116
123
114

996
1,070
1,109

1,164
1,216
1,214

1,685
1,806
1,897

1,914
2,000
2,079

1,680
1,750
1,812

756
772
757

Total assets (in billions)������������������������� 2009
	
����������������������������������� 2007
	
����������������������������������� 2005

$13,300.0
12,261.4
10,474.4

$165.4
189.8
207.5

$1,347.9
1,295.4
1,209.8

$1,500.8
1,410.7
1,351.2

$10,286.0
9,365.4
7,705.9

$2,458.2
2,261.8
2,729.8

$3,493.7
3,004.5
2,579.4

$3,124.6
2,830.9
2,426.9

$1,063.0
910.0
765.4

$777.4
674.4
570.0

$2,383.0
2,579.7
1,402.8

Return on assets (%)����������������������������� 2009
	
����������������������������������� 2007
	
����������������������������������� 2005

0.03
1.21
1.31

0.15
0.85
1.07

0.06
1.11
1.23

-0.50
1.13
1.34

0.10
1.24
1.32

-0.24
1.09
1.28

0.12
1.23
1.40

0.15
1.06
0.97

0.65
1.64
1.61

-0.25
1.13
1.28

-0.17
1.30
1.63

Net charge-offs to loans & leases (%)�� 2009
	
����������������������������������� 2007
	
����������������������������������� 2005

2.25
0.47
0.44

0.76
0.14
0.15

0.95
0.16
0.18

1.81
0.29
0.24

2.57
0.56
0.54

2.56
0.82
0.72

1.97
0.24
0.19

2.01
0.34
0.29

2.35
0.63
0.55

1.13
0.21
0.21

3.03
0.58
0.63

Noncurrent assets plus
	
OREO to assets (%)����������������������� 2009
	
����������������������������������� 2007
	
����������������������������������� 2005

2.77
0.62
0.48

2.04
0.81
0.72

2.94
0.75
0.54

3.44
0.67
0.44

2.67
0.59
0.47

1.81
0.60
0.49

3.08
0.42
0.31

2.87
0.63
0.55

3.12
1.10
0.76

2.44
0.66
0.58

3.13
0.68
0.47

Equity capital ratio (%)�������������������������� 2009
	
����������������������������������� 2007
	
����������������������������������� 2005

10.55
10.43
10.38

12.44
13.42
12.16

9.92
10.48
10.29

10.60
11.28
10.86

10.60
10.24
10.26

12.52
12.48
10.70

10.97
9.83
10.00

8.55
9.01
9.30

10.79
10.00
10.83

9.96
10.57
9.64

10.63
11.01
12.34

* 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

2010, Volume 4, No. 3

TABLE V-A.  Loan Performance, All FDIC-Insured Institutions
Asset Concentration Groups*
June 30, 2010

All Insured
Institutions

Credit
Card
Banks

International Agricultural Commercial Mortgage
Banks
Banks
Lenders
Lenders

Consumer
Lenders

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

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

1.96
2.36
1.14
1.06
1.16
2.79
0.80
2.06
2.19
1.91
0.51
1.69

1.25
0.00
0.00
0.00
1.95
1.18
2.60
2.22
2.18
3.02
0.08
2.23

2.78
2.48
0.62
0.56
1.53
4.28
0.43
2.07
2.62
1.86
0.35
1.86

1.13
1.88
1.00
1.34
0.62
1.67
1.36
1.82
1.48
1.83
0.78
1.11

1.59
2.31
1.19
1.27
0.85
2.13
0.96
1.74
1.70
1.75
0.54
1.43

1.89
5.90
1.49
1.68
1.18
1.89
1.03
1.51
3.16
1.06
0.76
1.85

1.07
0.46
1.84
3.87
0.94
1.14
1.29
1.70
1.11
1.98
0.32
1.51

1.34
0.77
0.90
1.16
0.49
1.86
1.01
1.93
2.50
1.86
0.76
1.34

1.66
1.97
1.21
1.85
0.82
1.97
1.63
2.02
1.63
2.03
0.68
1.63

2.35
2.24
1.00
0.64
1.25
3.44
0.55
2.07
2.49
1.99
0.59
1.84

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

7.32
16.87
4.28
4.16
1.71
9.75
2.91
1.95
2.58
1.28
1.49
5.21

4.89
0.00
0.00
0.00
2.28
6.11
2.95
2.61
2.57
3.32
0.17
2.62

10.63
19.04
5.64
4.17
1.93
17.67
5.25
2.06
2.61
1.86
2.03
6.75

2.38
10.12
2.87
2.88
0.80
1.61
2.34
0.75
0.75
0.75
0.96
1.97

5.81
16.53
4.01
4.38
1.18
5.41
2.51
1.43
2.87
1.12
1.33
4.65

4.81
15.06
3.67
3.20
1.79
4.93
3.02
1.07
3.16
0.50
0.42
4.57

1.15
4.51
2.56
1.74
0.82
1.14
0.72
1.32
1.14
1.40
1.15
1.24

2.66
6.98
2.37
3.60
0.90
2.33
1.38
0.95
1.21
0.92
0.85
2.15

2.38
7.09
2.79
3.51
0.82
1.85
2.35
0.71
0.84
0.71
0.98
2.11

9.99
18.78
5.44
3.62
2.09
14.26
2.34
1.18
2.85
0.87
1.24
6.61

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

1.97
5.14
1.12
1.20
2.89
1.65
1.90
7.01
12.15
2.18
0.74
2.74

4.91
0.00
0.00
0.00
9.02
4.24
17.20
13.72
13.73
13.62
0.01
13.44

2.42
2.78
1.10
0.98
2.80
2.99
1.46
3.32
6.27
2.24
0.68
2.16

0.48
2.96
0.50
0.83
0.68
0.34
1.31
0.55
2.35
0.50
0.00
0.53

1.91
5.54
1.16
1.37
1.42
1.45
1.72
2.56
8.12
1.39
1.20
1.89

1.04
6.21
0.69
0.91
3.72
0.75
1.53
3.42
10.53
1.30
0.55
1.16

1.66
1.68
0.51
1.70
2.25
1.08
5.57
2.36
5.06
1.18
3.05
2.37

0.47
0.80
0.35
1.63
0.22
0.47
0.56
1.09
5.17
0.60
0.35
0.56

0.34
1.76
0.26
0.72
0.31
0.23
0.95
0.65
2.85
0.61
0.27
0.43

2.38
4.18
1.16
0.92
4.13
1.89
1.10
3.04
9.57
1.65
0.58
2.09

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

$4,336.8
383.3
1,081.0
214.7
654.5
1,874.3
1,174.9
1,359.5
699.4
660.1
526.8
7,398.1

$0.1
0.0
0.0
0.0
0.0
0.1
32.4
564.6
537.4
27.1
2.7
599.8

$526.1
8.5
31.3
40.9
131.4
266.3
191.6
206.1
56.1
150.0
167.4
1,091.3

$72.1
4.5
20.7
1.6
1.5
19.2
15.7
6.3
0.1
6.1
28.1
122.2

$2,041.9
273.9
783.7
128.6
220.7
593.6
553.7
217.5
39.3
178.2
147.4
2,960.5

$434.8
8.4
27.4
9.0
26.6
362.4
11.0
21.5
4.6
16.9
3.2
470.5

$18.0
0.4
0.9
0.1
9.1
7.5
3.9
50.5
16.3
34.2
0.7
73.2

$6.7
0.5
2.2
0.2
0.2
3.2
1.3
1.3
0.1
1.2
0.6
10.0

$50.8 $1,186.2
3.1
83.8
12.6
202.1
1.2
33.1
2.3
262.5
28.3
593.8
6.7
358.7
7.1
284.6
0.1
45.2
6.9
239.4
4.7
172.0
69.2 2,001.5

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

49,285.2
18,002.8
8,980.2
2,790.3
13,722.1
317.6
5,280.5

-15.5
0.0
0.0
0.0
0.1
0.0
0.0

3,967.0
28.0
157.0
852.0
1,219.0
0.0
1,514.0

787.5
278.4
236.1
39.7
172.4
60.7
0.3

31,844.5
15,522.4
7,191.2
1,252.3
6,749.3
233.4
882.2

2,459.7
467.7
208.2
46.1
1,540.7
8.8
191.8

41.1
13.4
8.8
0.1
18.5
0.3
0.0

72.7
26.9
24.4
1.2
19.4
0.8
0.0

505.5
142.7
137.8
25.4
189.0
10.6
0.0

9,622.8
1,523.4
1,016.7
573.6
3,813.8
3.0
2,692.3

* 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

2010, Volume 4, No. 3

Quarterly Banking Profile
TABLE V-A.  Loan Performance, All FDIC-Insured Institutions
Asset Size Distribution
June 30, 2010

Geographic Regions*

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

Atlanta

Chicago

Kansas
City

Dallas

San
Francisco

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

1.96
2.36
1.14
1.06
1.16
2.79
0.80
2.06
2.19
1.91
0.51
1.69

1.69
2.15
1.46
1.13
0.88
2.11
1.73
2.22
2.38
2.22
0.78
1.63

1.46
2.13
1.25
1.29
0.84
1.67
1.27
1.81
2.49
1.76
0.66
1.41

1.29
1.98
1.05
1.01
0.83
1.48
0.92
1.91
2.06
1.86
0.65
1.26

2.25
2.62
1.12
1.02
1.22
3.22
0.72
2.07
2.19
1.93
0.48
1.81

1.54
2.89
1.21
0.85
0.68
1.81
1.24
2.09
2.04
2.28
0.34
1.59

2.14
1.92
1.24
1.54
1.38
3.08
0.62
2.15
2.35
2.04
0.24
1.78

1.94
2.39
1.28
1.21
1.23
2.80
0.78
1.65
1.92
1.56
0.72
1.59

2.32
2.91
1.04
0.91
1.13
3.64
1.03
2.53
2.70
2.27
1.01
2.05

1.64
1.87
0.99
1.27
0.97
2.37
0.91
1.38
1.01
1.57
0.43
1.43

2.07
2.97
0.92
0.65
1.12
3.14
0.47
1.92
2.17
1.77
0.23
1.58

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

7.32
16.87
4.28
4.16
1.71
9.75
2.91
1.95
2.58
1.28
1.49
5.21

3.09
10.28
3.35
2.80
1.39
2.22
2.69
1.02
1.10
1.01
1.03
2.66

4.08
12.85
3.28
3.50
1.22
2.75
2.44
0.80
1.68
0.75
1.02
3.58

5.39
16.42
3.96
4.56
1.35
4.05
2.49
1.07
1.72
0.84
1.14
4.48

8.64
18.82
4.98
4.21
1.78
12.04
3.03
2.04
2.61
1.36
1.57
5.65

4.78
17.93
3.76
3.12
0.94
4.71
2.92
2.38
2.59
1.62
0.95
3.69

8.92
17.60
4.77
4.88
1.93
12.19
2.27
1.48
2.62
0.88
0.74
6.31

8.15
16.27
4.58
4.56
1.61
13.03
2.62
1.27
2.42
0.90
1.72
5.69

8.88
16.92
4.53
3.58
2.39
13.46
2.77
2.25
2.74
1.49
1.35
5.97

4.83
10.78
2.76
3.80
1.05
5.28
1.68
0.70
0.92
0.59
1.41
3.76

6.58
23.18
4.86
4.90
1.39
7.45
4.75
2.14
2.64
1.84
2.55
4.95

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

1.97
5.14
1.12
1.20
2.89
1.65
1.90
7.01
12.15
2.18
0.74
2.74

0.58
2.68
0.50
0.76
0.65
0.36
1.31
0.77
4.41
0.71
0.00
0.64

0.91
3.18
0.57
0.78
0.68
0.60
1.37
1.40
7.45
1.00
0.48
0.98

1.75
5.91
1.19
1.50
1.23
0.91
1.54
2.66
8.16
1.01
0.86
1.76

2.30
5.65
1.38
1.21
3.18
1.97
2.02
7.52
12.28
2.40
0.77
3.22

1.04
4.28
0.90
0.99
0.82
0.72
3.25
11.91
14.17
4.92
0.52
4.10

2.73
5.61
1.35
1.32
4.28
2.16
1.48
4.65
11.09
1.63
0.41
2.63

2.09
6.11
1.31
1.25
2.08
1.98
1.92
2.87
7.95
1.38
1.48
2.11

2.02
4.25
0.79
0.82
3.79
1.75
1.89
9.04
14.98
1.87
0.76
3.13

1.22
3.31
0.59
0.81
1.55
0.90
1.06
1.96
4.23
0.93
0.49
1.22

2.10
7.06
1.59
1.67
2.56
1.98
1.63
3.76
6.23
2.26
0.45
2.21

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

$4,336.8
383.3
1,081.0
214.7
654.5
1,874.3
1,174.9
1,359.5
699.4
660.1
526.8
7,398.1

$65.6
5.3
19.6
1.9
2.1
28.1
12.4
6.7
0.1
6.7
10.6
95.4

$694.2
83.4
267.4
32.0
38.2
239.6
111.1
41.4
2.4
38.9
39.8
886.5

$680.6
86.0
269.0
41.6
48.2
224.4
136.3
71.4
18.7
52.7
32.2
920.6

$2,896.4
208.7
525.0
139.2
565.9
1,382.3
915.1
1,240.0
678.2
561.8
444.2
5,495.7

$826.5
51.6
219.8
58.0
87.2
404.2
179.7
415.3
324.7
90.6
82.8
1,504.3

$1,068.5
122.5
244.9
34.3
191.2
459.6
274.0
228.9
79.3
149.6
104.1
1,675.6

$852.1
62.9
194.5
62.3
176.0
340.0
251.2
195.9
47.6
148.4
116.1
1,415.4

$637.0
55.1
151.4
18.3
116.1
271.7
172.8
231.6
141.3
90.3
95.8
1,137.1

$357.5
55.3
125.1
9.3
24.3
131.5
89.8
44.8
15.0
29.8
24.1
516.2

$595.4
35.9
145.4
32.5
59.6
267.4
207.4
243.0
91.6
151.4
103.9
1,149.6

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

49,285.2
18,002.8
8,980.2
2,790.3
13,722.1
317.6
5,280.5

1,088.7
353.0
330.4
36.9
342.3
24.6
2.0

12,872.6
6,239.5
3,183.1
444.9
2,832.8
171.4
5.0

10,356.2
5,570.4
2,185.0
413.3
2,028.3
90.4
71.3

24,967.6
5,839.8
3,281.7
1,895.2
8,518.8
31.2
5,202.3

4,052.3
1,119.8
928.2
258.4
1,499.5
15.8
217.6

14,702.4
5,975.9
1,973.8
437.2
4,681.7
46.8
1,586.9

9,965.5
2,621.7
2,039.5
421.3
2,794.0
67.5
2,019.1

8,583.2
2,896.9
1,560.0
530.5
2,189.3
58.1
1,348.7

5,361.5
2,692.6
1,211.6
151.1
1,188.2
99.3
18.6

6,620.4
2,695.8
1,267.0
991.7
1,369.4
30.1
89.6

* 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

2010, Volume 4, No. 3

TABLE VI-A.  Derivatives, All FDIC-Insured Commercial Banks and State-Chartered Savings Banks
Asset Size Distribution
% Change
Less
$100
4th Quarter 3rd Quarter 2nd Quarter 09Q2than $100 Million to
2009
2009
2009
10Q2
Million
$1 Billion

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

(dollar figures in millions;
2nd Quarter 1st Quarter
notional amounts unless otherwise indicated)
2010
2010
ALL DERIVATIVE HOLDERS
Number of institutions reporting derivatives ����������������
�
1,159
1,148
1,131
1,175
1,214
Total assets of institutions reporting derivatives���������� $10,671,060 $10,766,470 $10,568,242 $10,546,527 $10,593,191
Total deposits of institutions reporting derivatives�������
7,248,761
7,281,825
7,341,335
7,183,905
7,097,228
Total derivatives ������������������������������������������������������������ 225,433,522 218,068,203 213,563,296 210,008,291 208,656,901
�

-4.5
0.7
2.1
8.0

92
$6,641
5,534
295

697
$294,434
238,833
20,307

293
77
$858,367
$9,511,619
658,084
6,346,309
74,544 225,338,376

Derivative Contracts by Underlying Risk Exposure
Interest rate ������������������������������������������������������������������� 188,614,063 181,989,212 179,565,399 176,204,154 175,648,997
�
Foreign exchange*�������������������������������������������������������� 20,245,402 19,201,890
17,297,929
17,709,286 16,640,233
Equity�����������������������������������������������������������������������������
1,615,041
1,570,950
1,685,227
2,182,431
2,041,638
Commodity & other (excluding credit derivatives) �������
�
1,082,812
941,687
978,922
926,295
909,250
Credit����������������������������������������������������������������������������� 13,876,204 14,364,464 14,035,819 12,986,125
�
13,416,784
Total������������������������������������������������������������������������������� 225,433,522 218,068,203 213,563,296 210,008,291 208,656,901
�

7.4
21.7
-20.9
19.1
3.4
8.0

284
0
10
0
0
295

19,791
30
147
75
265
20,307

69,985 188,524,003
3,747
20,241,626
631
1,614,253
135
1,082,602
46
13,875,892
74,544 225,338,376

Derivative Contracts by Transaction Type
Swaps���������������������������������������������������������������������������� 141,420,332 136,333,354 142,021,986 139,477,035 137,993,983
Futures & forwards�������������������������������������������������������� 36,793,857 34,096,685 26,495,665 24,944,757 25,885,385
Purchased options �������������������������������������������������������� 15,402,898
�
15,757,710
15,151,690 15,424,802 15,020,266
Written options�������������������������������������������������������������� 15,901,608
�
15,910,612
15,113,322 15,063,214 14,859,851
Total������������������������������������������������������������������������������� 209,518,695 202,098,362 198,782,664 194,909,809 193,759,485
�

2.5
42.1
2.5
7.0
8.1

30
105
15
145
295

9,481
4,744
784
5,033
20,041

52,023 141,358,798
10,496
36,778,512
3,283
15,398,816
8,312
15,888,118
74,114 209,424,245

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����������������������������������
�

98,101
-4,874
305
-574
-222,426
242,561

94,818
1,431
-856
994
-121,491
141,273

96,993
9,671
1,236
1,623
-160,980
188,641

122,592
-5,037
-253
3,615
-234,357
266,208

123,696
-10,568
670
1,156
-474,635
523,242

-20.7
N/M
-54.5
N/M
N/M
-53.6

4
0
0
0
0
0

-18
0
2
4
0
-3

199
-16
4
2
2
-3

97,916
-4,858
298
-580
-222,427
242,566

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

89,000,746
33,347,769
23,099,477
11,959,581
2,356,096
1,306,940
326,742
205,283
80,586
324,203
210,319
30,459

84,010,679
33,334,968
24,119,721
11,092,119
2,440,019
1,328,830
320,739
220,441
83,990
287,660
177,250
31,220

80,979,619
33,638,323
26,141,315
10,416,223
2,448,723
1,343,778
312,066
227,854
81,647
261,429
223,654
34,250

78,128,617
33,977,575
26,620,986
9,674,124
2,405,751
1,325,262
358,462
301,995
82,835
237,860
233,829
43,612

74,833,456
35,928,119
28,371,872
9,490,043
2,293,453
1,193,852
343,416
291,182
75,716
252,705
211,329
45,443

18.9
-7.2
-18.6
26.0
2.7
9.5
-4.9
-29.5
6.4
28.3
-0.5
-33.0

71
17
19
0
0
0
3
1
0
0
0
0

4,854
7,095
2,324
18
4
0
25
60
1
39
17
0

14,272
25,460
19,410
2,515
74
86
129
246
0
51
43
0

88,981,549
33,315,196
23,077,724
11,957,048
2,356,017
1,306,854
326,586
204,976
80,585
324,113
210,260
30,459

57.3
83.6

66.8
80.6

0.2
0.1

0.7
0.1

1.5
0.6

50.6
93.9

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

44.8
82.9

41.2
88.9

45.9
83.3

127.7

130.2

129.2

140.9

147.3

0.3

0.8

2.1

144.5

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

222.2

103.6

767.1

605.3

384.7

-42.2

0.0

0.0

0.9

221.2

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

188
8,882,861
6,078,554

194
8,949,197
6,095,242

197
8,873,918
6,145,573

207
8,911,543
6,014,547

204
8,911,914
5,990,076

-7.8
-0.3
1.5

6
464
381

67
28,598
22,820

58
237,207
181,893

57
8,616,592
5,873,460

Derivative Contracts by Underlying Risk Exposure
Interest rate ������������������������������������������������������������������� 186,774,353 180,109,272 177,717,314 174,199,745 173,339,084
�
Foreign exchange���������������������������������������������������������� 18,072,001 17,462,255 16,437,639 15,510,657 15,051,809
Equity�����������������������������������������������������������������������������
1,608,817
1,563,707
1,677,767
2,175,796
2,034,228
Commodity & other �������������������������������������������������������
�
1,077,566
934,851
974,849
924,183
906,325
Total������������������������������������������������������������������������������� 207,532,737 200,070,085 196,807,569 192,810,380 191,331,447
�

7.8
20.1
-20.9
18.9
8.5

25
0
0
0
25

1,115
1
1
0
1,116

21,022
2,273
234
32
23,561

186,752,191
18,069,727
1,608,583
1,077,535
207,508,035

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

144
4,299
378
1,815
6,636

304
3,906
965
3,004
8,178

-1,182
2,560
144
417
1,940

5,436
-1,535
153
1,648
5,702

900
2,132
-92
2,320
5,260

-84.0
101.6
N/M
-21.8
26.2

0
0
0
0
0

0
0
0
0
0

32
2
1
0
35

112
4,297
377
1,816
6,601

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

5.4
45.8

6.6
74.0

1.6
107.9

4.7
88.1

4.0
96.9

0.0
0.0

0.0
0.0

1.1
-97.4

5.5
45.5

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

1,047
10,282,637
7,015,474

1,032
10,344,141
7,034,900

1,010
10,212,051
7,098,523

1,048
10,199,833
6,955,097

1,086
10,216,754
6,847,472

-3.6
0.6
2.5

86
6,177
5,153

631
267,465
217,162

259
754,467
576,815

71
9,254,527
6,216,343

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

1,839,711
134,777
6,224
5,246
1,985,957

1,879,940
134,258
7,243
6,835
2,028,276

1,848,085
115,478
7,459
4,073
1,975,095

2,004,409
86,272
6,635
2,112
2,099,429

2,309,913
107,791
7,410
2,924
2,428,038

-20.4
25.0
-16.0
79.4
-18.2

260
0
10
0
270

18,676
28
146
75
18,925

48,963
1,089
397
103
50,553

1,771,812
133,660
5,670
5,067
1,916,209

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

2010, Volume 4, 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
2010

1st
Quarter
2010

4th
Quarter
2009

3rd
Quarter
2009

2nd
Quarter
2009

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

Number of institutions reporting securitization activities�����������������������������������������
129
127
142
142
139
Outstanding Principal Balance by Asset Type
	
1-4 family residential loans������������������������������������������������������������������������������� $1,180,361 $1,194,588 $1,209,474 $1,225,694 $1,222,193
�
	
Home equity loans���������������������������������������������������������������������������������������������
0
15
5,947
6,205
6,594
	
Credit card receivables�������������������������������������������������������������������������������������
15,452
16,133
363,486
391,417
397,918
	
Auto loans����������������������������������������������������������������������������������������������������������
486
600
7,182
8,277
10,266
	
Other consumer loans���������������������������������������������������������������������������������������
5,021
5,610
24,692
25,335
26,006
	
Commercial and industrial loans����������������������������������������������������������������������
�
3,796
4,127
7,649
8,436
9,019
	
All other loans, leases, and other assets*��������������������������������������������������������
206,692
192,853
198,835
192,077
193,374
�
Total securitized and sold����������������������������������������������������������������������������������������� 1,411,808 1,413,926 1,817,266 1,857,441 1,865,371

-7.2

18

61

-3.4
-100.0
-96.1
-95.3
-80.7
-57.9
6.9
-24.3

$262
0
0
0
0
1
5
268

$962
0
830
0
0
7
43
1,841

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���

-17.3
-100.0
-99.5
-99.2
-82.5
-48.9
-17.1
-95.5
-56.1

2
0
0
0
0
0
0
2
1

9
0
215
0
0
0
4
229
0

57
0
0
6
0
86
0
148
1

4,942
0
449
0
245
8
244
5,888
164

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

Assets Sold with Recourse and Not Securitized

22

28

$2,147 $1,176,990
0
0
0
14,623
67
419
0
5,020
628
3,161
158
206,486
3,000 1,406,700

5,009
0
664
6
245
94
248
6,266
166

5,166
14
730
6
237
95
257
6,506
162

5,780
1,023
134,193
637
1,410
225
287
143,555
387

6,115
1,006
136,043
745
1,434
274
333
145,950
358

6,058
1,063
129,373
722
1,399
184
299
139,100
378

3.7
0.0
1.5
1.2
3.7
0.2
2.6
3.5

3.9
0.0
1.5
1.2
3.3
0.3
2.2
3.6

4.4
1.3
2.7
2.3
3.9
2.3
3.5
4.0

4.6
1.3
2.9
2.4
3.6
2.9
1.2
3.9

4.3
0.8
2.6
2.2
2.9
2.6
1.9
3.7

3.9
0.0
0.0
0.0
0.0
0.0
0.0
3.9

0.8
0.0
2.4
0.0
0.0
26.0
0.0
1.6

2.5
0.0
0.0
1.0
0.0
0.9
0.0
2.0

3.7
0.0
1.5
1.2
3.7
0.0
2.6
3.5

7.8
0.0
0.7
0.2
2.7
0.1
8.5
7.8

8.5
0.0
0.8
0.3
2.7
0.1
7.5
8.2

7.9
2.0
3.0
0.2
3.6
1.0
4.3
6.4

7.5
1.8
2.6
0.3
3.6
1.2
3.7
5.9

6.6
0.9
2.9
0.2
3.3
1.3
1.6
5.2

1.9
0.0
0.0
0.0
0.0
0.0
9.1
2.0

0.5
0.0
3.1
0.0
0.0
0.0
0.0
1.7

3.7
0.0
0.0
0.1
0.0
0.7
0.9
2.9

7.8
0.0
0.5
0.2
2.7
0.0
8.6
7.8

0.4
0.0
4.2
0.4
0.9
0.0
0.0
0.4

0.2
0.0
2.2
0.3
0.4
0.0
0.1
0.2

1.0
1.8
10.2
2.5
1.0
13.9
0.1
2.8

0.7
1.4
7.6
1.9
0.7
10.0
0.0
2.1

0.5
0.9
4.8
1.1
0.5
6.9
0.0
1.4

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
6.1
0.0
0.0
0.0
0.0
2.7

0.0
0.0
0.0
0.1
0.0
0.1
0.0
0.0

0.4
0.0
4.1
0.5
0.9
0.0
0.0
0.4

0
5,088
3

0
4,831
4

316
62,235
894

396
73,401
930

134
68,128
451

-100.0
-92.5
-99.3

0
0
0

0
55
2

0
0
0

0
5,033
0

0
0
0

0
0
0

1
789
0

2
788
0

4
594
0

-100.0
-100.0
0.0

0
0
0

0
0
0

0
0
0

0
0
0

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

833

820

826

821

827

0.7

169

507

115

42

62,232
41
541
52,400
115,215

62,219
40
669
48,372
111,299

66,978
908
2,654
48,757
119,298

68,000
1,024
2,844
47,971
119,840

70,505
1,159
3,195
47,560
122,419

-11.7
-96.5
-83.1
10.2
-5.9

2,591
0
1
1
2,593

9,099
9
54
79
9,241

4,151
15
25
301
4,493

46,391
17
461
52,019
98,888

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

14,192
21
78
12,748
27,039

13,702
21
62
10,450
24,234

16,534
100
1,934
10,412
28,980

15,419
104
2,003
10,136
27,662

15,837
112
2,224
10,011
28,184

-10.4
-81.3
-96.5
27.3
-4.1

102
0
1
1
104

1,214
7
40
51
1,312

2,445
3
25
13
2,486

10,431
11
12
12,683
23,137

Number of institutions reporting securitization facilities sponsored by others�������
Total credit exposure�������������������������������������������������������������������������������������������������

125
9,254

78
6,427

58
4,297

60
4,872

60
3,812

108.3
142.8

31
26

59
201

26
131

9
8,896

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

418

846

545

327

475

-12.0

0

0

0

418

5,956,144 5,995,522

5,777,228

Support for Securitization Facilities Sponsored by Other Institutions

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

6,010,523

5,977,515

5,878,337

1.3

4,065

80,879

93,972

7,315

7,253

15,953

17,649

20,208

-63.8

5

0

84

7,226

78,062

80,156

170,373

182,740

210,026

-62.8

0

0

1,145

76,917

3,916
156
3.7

4,835
13
3.3

8,019
1,615
15.9

5,995
1,163
16.2

10,845
-142
15.8

-63.9
-209.9

32
1
0.7

127
6
1.4

103
2
2.1

3,655
147
4.4

* 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

2010, Volume 4, No. 3

Insurance Fund Indicators
DIF Reserve Ratio Rises 10 Basis Points to -0.28 Percent
■	 $250,000 Standard Insurance Coverage Becomes Permanent
■	 New Law Requires FDIC to Amend Regulations to Redefine the
Assessment Base
■	 45 Institutions Fail during Second Quarter
■	

Total assets of the nation’s 7,830 FDIC-insured
commercial banks and savings institutions decreased by
1.0 percent ($136.2 billion) during second quarter
2010. Total deposits decreased by 0.6 percent ($57.8
billion), foreign office deposits decreased by 2.2 percent
($33.2 billion), and domestic office deposits decreased
by 0.3 percent ($24.6 billion). Domestic noninterestbearing deposits increased by 1.4 percent ($20.8
billion), savings deposits and interest bearing checking
accounts increased by 1.0 percent ($38.0 billion), and
domestic time deposits decreased by 3.7 percent ($83.4
billion). For the 12 months ending June 30, total
domestic deposits grew by 1.5 percent ($112.5 billion),
with interest-bearing deposits increasing by 0.7 percent
($41.3 billion) and noninterest-bearing deposits rising
by 4.8 percent ($71.2 billion).

assets, representing 5.3 percent of total outstanding
brokered deposits.1
Estimated insured deposits at all FDIC-insured institutions declined by 0.6 percent during second quarter
2010 but increased a net 12.9 percent during the past
four quarters. For institutions existing as of March 31,
2010, and June 30, 2010, insured deposits increased
during the second quarter at 4,280 institutions (55
percent), decreased at 3,515 institutions (45 percent),
and remained unchanged at 35 institutions.
The Deposit Insurance Fund (DIF) increased by $5.5
billion during the second quarter to -$15.2 billion (unaudited). The increased amount included $3.2 billion from
accrued assessment income, $2.6 billion from a decrease
in provisions for insurance losses, and $119 million from
interest on securities and other revenue. Unrealized losses
on available-for-sale securities combined with operating
expenses reduced the fund by $443 million.

The share of assets funded by domestic deposits
increased from 56.8 percent to 58.0 percent during the
past year. In contrast, Federal Home Loan Bank
(FHLB) advances as a share of asset funding declined
from 4.8 percent to 3.4 percent, repurchase agreements’
share declined from 4.2 percent to 3.7 percent, and the
share of foreign office deposits was flat at about 11.0
percent. FHLB advances decreased by 29.8 percent
($189.2 billion) during the 12 months ending June 30.

Forty-five insured institutions with combined assets of
$47.3 billion failed during second quarter 2010. For
2010 through the end of the second quarter, 86 insured
institutions with combined assets of $69.4 billion failed,
resulting in an estimated current cost to the DIF of
$16.8 billion.
The DIF’s reserve ratio was -0.28 percent on June 30,
2010, up from -0.38 percent on March 31, 2010, and
down from 0.22 percent one year earlier. The June 30,
2010, figure marked a second consecutive increase;
however, it is the third lowest reserve ratio on record,
following the December 31, 2009, reserve ratio of -0.39
percent and the March 31, 2010, reserve ratio of -0.38
percent. The deposit insurance coverage limit increase
to $250,000 has been reflected in the reserve ratio since
third quarter 2009.

Brokered deposits decreased by 3.4 percent ($20.5
billion) during the second quarter and have declined by
a total of 23.9 percent ($185.1 billion) since being
added to the equation for pricing deposit insurance in
second quarter 2009. At mid-year 2010, 44 percent
(3,465) of FDIC-insured banks and thrifts used brokered
deposits to fund a portion of their balance sheet. About
30 percent (1,053) had brokered deposits that exceeded
10 percent of their domestic deposits, down from 40
percent a year earlier. Reciprocal brokered deposits were
used by 1,597 institutions to fund $31.3 billion worth of

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.
1

14

2010, Volume 4, No. 3

Quarterly Banking Profile
The Act eliminates the requirement that the FDIC
d
­ ividend from the fund when the reserve ratio exceeds
1.35 percent, but continues to require dividends when
the reserve ratio exceeds 1.50 percent. However, the
FDIC Board of Directors may, in its sole discretion,
suspend or limit the declaration of payment of assessment dividends. The Act eliminates the maximum
l
­imitation of the reserve ratio and raises the minimum
reserve ratio that can be designated by the FDIC Board
of Directors from 1.15 percent of estimated insured
deposits to not less than 1.35 percent of estimated
insured deposits or the comparable percentage of the
assessment base. The FDIC is also required to take steps
necessary to attain a 1.35 percent reserve ratio by
September 30, 2020. When setting the assessments
necessary to meet the increased minimum target for
the reserve ratio, the FDIC is directed to offset the effect
on insured depository institutions with assets less than
$10 billion.

Dodd-Frank Wall Street Reform and Consumer
Protection Act
On July 21, 2010, President Barack Obama signed the
Dodd-Frank Wall Street Reform and Consumer Protection Act, which permanently increased the standard
maximum deposit insurance coverage to $250,000 (the
permanent limit of $100,000 for deposits other than
retirement accounts had been temporarily increased to
$250,000 until December 31, 2013). The new legislation also made the coverage increase retroactive to
January 1, 2008, making the $250,000 deposit insurance
limit applicable to six banks that failed between January
1, 2008, and October 3, 2008. The history of FDIC
insurance coverage increases is as follows:
FDIC Insurance Coverage Limits
1934 – 20102
Year
1934

Standard Coverage Limit ($)
2,500

1934 – 1949

5,000

1950 – 1965

10,000

1966 – 1968

15,000

1968 – 1973

20,000

1974 – 1979

The new law will provide unlimited insurance for
noninterest-bearing transaction accounts (separate from
the standard $250,000 insurance limit) for two years
beginning December 31, 2010. Participation will be
mandatory for all insured depository institutions (no
opt-outs) with no separate assessment fees for coverage.
Only noninterest-bearing transaction accounts will be
covered (NOW accounts and any other interest-bearing
transaction accounts will not be covered). Beginning
March 31, 2011, the noninterest-bearing transaction
accounts will be included in insured deposit amounts
used to calculate the DIF reserve ratio.

40,000

1980 – 2007

100,000

2008

250,000

On October 3, 2008, the Emergency Economic Stabilization Act of 2008
t
­emporarily increased the standard deposit insurance coverage limit to $250,000
through December 31, 2009. On May 20, 2009, the Helping Families Save Their
Homes Act of 2009 extended the temporary coverage increase to $250,000
through the end of 2013. On July 21, 2010, the Dodd-Frank Wall Street Reform
and Consumer Protection Act of 2010 made the standard coverage limit to
$250,000 permanent, and made the increased coverage limit retroactive to
J
­ anuary 1, 2008. Coverage for certain retirement accounts increased to
$250,000 in 2006. Initial coverage was $2,500 from January 1 to June 30, 1934.
2

The Act also directs the FDIC to amend its regulations
to define the assessment base as average total consolidated assets minus average tangible equity during the
assessment period, new terms which have not yet been
defined by regulations. Following is a table that approximates how industry assets less tangible equity are stratified by institution asset size as of June 30, 2010.

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

Distribution of FDIC-Insured Commercial Banks and Savings Institutions3
by Asset Size ($ Billions)
Asset Size
as of June 30, 2010
Greater than $100 Billion

Number of
Institutions
19

Percent of
Total
Institutions
0.2%

Total Domestic
Deposits
3,785

Percent of
Total Domestic
Deposits
49.4%

Total Assets Less
Total Tangible
Equity4
7,243

Percent of
Total Assets Less
Tangible Equity
59.7%

$50 to $100 Billion

16

0.2%

670

8.7%

1,012

8.3%

$10 to $50 Billion

70

0.9%

920

12.0%

1,262

10.4%
10.6%

$1 to $10 Billion

555

7.1%

1,075

14.0%

1,293

Less than $1 Billion

7,170

91.6%

1,218

15.9%

1,333

11.0%

	

7,830

100.0%

7,668

100.0%

12,143

100.0%

Total

Data was revised on 9/3/10 to remove insured foreign branch data, which was incomplete. The revised data represents FDIC-insured commercial banks and savings
institutions and does not include insured U.S. branches of foreign banks.
4
Data is based on quarter-end balance sheet amounts as of June 30, 2010. These calculations are provided as a rough approximation of how industry assets less tangible
equity are stratified by institution asset size; however these calculations are not the equivalent of the future deposit insurance assessment base as defined by the DoddFrank Wall Street Reform and Consumer Protection Act of 2010. The assessment base, with possible exceptions, will be based on an institution’s average consolidated total
assets during the assessment period; minus an institution’s average tangible equity during the assessment period. These terms have not yet been defined by regulation.
3

FDIC Quarterly	

15

2010, Volume 4, No. 3

Table I-B.  Insurance Fund Balances and Selected Indicators

(dollar figures in millions)
Beginning Fund Balance�����

2nd
Quarter
2010*

1st
Quarter
2010*

4th
Quarter
2009

3rd
Quarter
2009

2nd
Quarter
2009

Deposit Insurance Fund
1st
4th
3rd
Quarter
Quarter
Quarter
2009
2008
2008

2nd
Quarter
2008

1st
Quarter
2008

4th
Quarter
2007

3rd
Quarter
2007

2nd
Quarter
2007

-$20,717

-$20,862

-$8,243

$10,368

$13,007

$17,276

$34,588

$45,217

$52,843

$52,413

$51,754

$51,227

$50,745

3,242

3,278

3,042

2,965

9,095

2,615

996

881

640

448

239

170

140

64

62

76

176

240

212

277

526

651

618

585

640

748

0
382

0
345

0
379

732
328

521
298

136
266

302
290

473
249

0
256

0
238

0
262

0
243

0
248

-2,552

3,021

17,766

21,694

11,615

6,637

19,163

11,930

10,221

525

39

132

-3

55

22

2,458

308

375

2

15

16

1

0

-2

24

1

-61
5,470

149
145

-50
-12,619

-770
-18,611

-957
-2,639

-331
-4,269

551
-17,312

-346
-10,629

1,559
-7,626

127
430

138
659

68
527

-162
482

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

-15,247

-20,717

-20,862

-8,243

10,368

13,007

17,276

34,588

45,217

52,843

52,413

51,754

51,227

NM

NM

NM

NM

-77.07

-75.39

-67.04

-33.17

-11.73

4.13

4.48

3.52

3.36

Reserve Ratio (%)�����������������

-0.28

-0.38

-0.39

-0.16

0.22

0.27

0.36

0.76

1.01

1.19

1.22

1.22

1.21

5,438,866

5,473,345

5,406,174

5,315,551

4,817,617

4,831,366

4,750,638

4,545,116

4,467,587

4,437,887

4,292,211

4,242,607

4,235,044

12.90

13.29

13.80

16.95

7.83

8.87

10.68

7.13

5.49

4.54

3.33

3.47

4.81

7,685,070

7,702,418

7,705,356

7,561,308

7,561,998

7,546,999

7,505,409

7,230,328

7,036,248

7,076,719

6,921,678

6,747,998

6,698,886

1.63

2.06

2.66

4.58

7.47

6.65

8.43

7.15

5.04

5.58

4.24

4.06

3.91

7,840

7,944

8,022

8,109

8,205

8,257

8,315

8,394

8,462

8,505

8,545

8,570

8,625

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�����

Estimated Insured
Deposits**������������������������������
	
Percent change from
	
four quarters earlier���������
Domestic Deposits���������������
	
Percent change from
	
four quarters earlier���������
Number of institutions
	
reporting�������������������������

DIF Reserve Ratios

Deposit Insurance Fund Balance
and Insured Deposits
($ Millions)

Percent of Insured Deposits
1.21

1.22

1.22

1.19

DIF
Balance

1.01
6/07
9/07
12/07
3/08
6/08
9/08
12/08
3/09
6/09
9/09
12/09
3/10
6/10

0.76

0.36

0.27

0.22
-0.16 -0.39 -0.38 -0.28

6/07

12/07

6/08

12/08

6/09

12/09

6/10

DIF-Insured
Deposits

$51,227
51,754
52,413
52,843
45,217
34,588
17,276
13,007
10,368
-8,243
-20,862
-20,717
-15,247

$4,235,044
4,242,607
4,292,211
4,437,887
4,467,587
4,545,116
4,750,638
4,831,366
4,817,617
5,315,551
5,406,174
5,473,345
5,438,866

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

2010****

2009****

2009

2008

2007

2006

2005

829
$403,203

416
$299,837

702
$402,782

252
$159,405

76
$22,189

50
$8,265

52
$6,607

86
$69,396

45
$35,868

140
$169,709

25
$371,945

3
$2,615

0
$0

0
$0

0
$0

8
$1,917,482

8
$1,917,482

5
$1,306,042

0
0

0
0

0
0

* For 2010, preliminary unaudited fund data, which are subject to change.
NM - Not meaningful
** 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 Home 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 include the temporary coverage increase to $250,000. The coverage increase to $250,000 became permanent on July 21, 2010, when the President
signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act.
*** Assisted institutions represent five institutions under a single holding company that received assistance in 2008, and eight institutions under a different single holding company that
received assistance in 2009.
**** Through June 30.

FDIC Quarterly	

16

2010, Volume 4, 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, 2010
Commercial Banks and Savings Institutions

Total
Assets

Domestic
Deposits*

Est. Insured
Deposits

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

6,676
4,413
1,427
836

$11,969,017
1,931,329
8,348,856
1,688,832

$6,769,422
1,463,157
4,304,392
1,001,873

$4,623,909
1,168,089
2,813,128
642,692

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

1,154
753
401

1,251,535
932,199
319,336

898,273
661,760
236,513

801,516
594,265
207,251

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

7,830

13,220,551

7,667,695

5,425,425

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

10

24,093

17,374

13,441

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

7,840

13,244,645

7,685,070

5,438,866

* 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, 2010
(dollar figures in billions)

Risk Category I

Risk Category II
Risk Category III
Risk Category IV

Annual
Rate in
Basis Points*
7.00–12.00
12.01–14.00
14.01–15.99
16.00–24.00
17.00–22.00
22.01–43.00
27.00–32.00
32.01–58.00
40.00–45.00
45.01–77.50

Number of
Institutions
1,717
1,509
2,130
442
1,043
290
433
180
121
79

Percent
of Total
Institutions
21.61
19.00
26.81
5.56
13.13
3.65
5.45
2.27
1.52
0.99

Domestic
Deposits
619
1,555
2,197
495
2,030
466
128
111
46
56

Percent
of Total
Domestic
Deposits
8.03
20.19
28.52
6.43
26.35
6.05
1.67
1.44
0.59
0.72

Note: Institutions are categorized based on supervisory ratings, debt ratings and financial data as of March 31, 2010.
Rates do not reflect the application of assessment credits. See Notes to Users for further information on risk categories and rates.
* Assessment rates with a given risk category vary for several reasons, see 12 CFR Part 327
http://www.fdic.gov/deposit/insurance/initiative/09FinalAD35.pdf

FDIC Quarterly	

17

2010, Volume 4, No. 3

TEMPORARY LIQUIDITY GUARANTEE PROGRAM
Debt Guarantee Program Ended October 31, 2009
■	 Transaction Account Guarantee Program Extended to December 31, 2010
■	 $264 Billion Guaranteed in Transaction Accounts over $250,000
■	 $304 Billion Outstanding in Debt Guarantee Program
■	

adopted a final rule on October 20, 2009, that allowed
the DGP to expire on October 31, 2009.3

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

A final rule extending the TAGP six months, to June 30,
2010, was adopted on August 26, 2009. Entities participating in the TAGP had the opportunity to opt out of the
extended program. Depository institutions that remained
in the extended program were subject to increased fees
that were adjusted to reflect the institution’s risk.4
On June 22, 2010, the FDIC adopted a final rule
extending the TAGP for another six months, through
December 31, 2010. Under the final rule, which is
almost identical to an interim rule adopted on April 13,
the FDIC could extend the program for an additional
12 months without further rulemaking.5

All insured depository institutions were eligible to
participate in the TAGP. Institutions eligible for participation in the DGP were 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 designated as
eligible entities.

Noninterest-Bearing Transaction Accounts Fully
Insured under Dodd-Frank Reform Bill
An amendment to the Dodd-Frank Wall Street Reform
and Consumer Protection Act requires that noninterestbearing transaction accounts at all FDIC-insured institutions be fully insured for two years. This amendment
takes effect on December 31, 2010. Coverage of
non­nterest-bearing transaction accounts is separate
i
from the regular insurance limit of $250,000. Assessments for noninterest-bearing transaction accounts will
be included in insured institutions’ regular assessments.6

FDIC Extends Guarantee Programs
Although financial markets improved significantly in
the first half of 2009, portions of the industry were still
affected by the recent economic turmoil. To facilitate
the orderly phase-out of the TLGP, and to continue
access to FDIC guarantees where they were needed, the
FDIC Board extended both the DGP and TAGP.

Program Funded by Industry Fees and Assessments

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. The
Board also extended the expiration date of the guarantee from June 30, 2012, to the earlier of maturity of the
debt or December 31, 2012. The FDIC imposed a
surcharge on debt issued with a maturity of one year or
more beginning in second quarter 2009.2 The Board

The TLGP does not rely on taxpayer funding or the
Deposit Insurance Fund. Both the TAGP and the DGP
are paid for by direct user fees. Institutions participating in
See http://www.fdic.gov/regulations/laws/federal/2009/09finalAD37
Oct23.pdf.
4
See http://www.fdic.gov/news/board/aug26no3.pdf. The final rule
requires that interest rates on qualifying NOW accounts offered by
banks participating in the program be reduced to 0.25 percent from
0.50 percent. The rule also requires TAGP assessment reporting to be
based on average daily balances but makes no changes to the assessment rates for participating institutions.
5
See http://www.fdic.gov/news/news/press/2010/pr10139.html.
6
See http://www.fdic.gov/regulations/reform/summary.html.
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/Mar1709rule.pdf.
1

FDIC Quarterly	

18

2010, Volume 4, No. 3

Quarterly Banking Profile
the TAGP through year-end 2009 were assessed an annual
fee of 10 basis points. Fees for qualifying noninterest-­
bearing transaction accounts guaranteed between January
1, 2010 and June 30, 2010, were based on the participating
entity’s risk category assignment under the FDIC’s riskbased premium system. Annualized fees are 15, 20, or 25
basis points, depending on an institution’s risk category.

noninterest-bearing transaction accounts over
$250,000, about half the number of accounts reported
at year-end 2009. These deposit accounts totaled $344
billion, of which $264 billion was guaranteed under the
TAGP. More than 5,500 FDIC-insured institutions
reported noninterest-bearing transaction accounts over
$250,000 in value.

Fees for participation in the DGP were based on the
maturity of debt issued and ranged from 50 to 100 basis
points (annualized). A surcharge was imposed on debt
issued with a maturity of one year or greater after April
1, 2009. For debt that was not issued under the extension, that is, debt issued on or before June 30, 2009, and
maturing on or before June 30, 2012, surcharges were
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 were 25 basis points (annualized) on debt
issued by insured depository institutions and 50 basis
points (annualized) on debt issued by other partici­
pating entities. As of June 30, 2010, fees totaling
$10.4 billion had been assessed under the DGP.

$304 Billion in FDIC-Guaranteed Debt Outstanding
at June 30, 2010
Guaranteed debt outstanding at the end of second quarter 2010 totaled $304 billion. This debt was issued by
71 financial entities—42 insured depository institutions
and 29 bank and thrift holding companies and nonbank
affiliates. 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 81 percent of FDIC-guaranteed debt
outstanding at June 30, 2010.
Debt outstanding at June 30, 2010, had longer terms at
issuance, compared to debt outstanding at year-end
2008. Less than 1 percent of debt outstanding matures
in one year or less, compared to 49 percent at year-end
2008; and 80 percent matures more than two years after
issuance, compared to 39 percent at December 31,
2008. Among types of debt instruments, 91 percent was
in medium-term notes, compared to 44 percent at yearend. The share of outstanding debt in commercial paper
fell to less than 0.01 percent from 43 percent at yearend 2008.

A Majority of Eligible Entities Have Chosen to
Participate in the TLGP
Almost 80 percent of FDIC-insured institutions opted
in to the TAGP extension through June 30, 2010.
More than half of all eligible entities elected to opt in
to the DGP. A list of institutions that opted out of the
guarantee programs is posted at http://www.fdic.gov/
regulations/resources/TLGP/optout.html.

Author:	
	
	
	

$264 Billion Guaranteed in Transaction Accounts
over $250,000
According to second quarter 2010 Call and Thrift
Financial Reports, insured institutions reported 319,742

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

Table I-C.  Participation in Temporary Liquidity Guarantee Program
Total
Eligible Entities

June 30, 2010
Transaction Account Guarantee Program Extension to June 30, 2010
	 Depository Institutions with Assets <= $10 Billion��������������������������������������������������
	 Depository Institutions with Assets > $10 Billion����������������������������������������������������
		 Total Depository Institutions*����������������������������������������������������������������������������
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

7,734
105
7,839

6,168
66
6,234

79.8%
62.9%
79.5%

7,734
105
7,839
5,992
13,831

4,079
95
4,174
3,363
7,537

52.7%
90.5%
53.2%
56.1%
54.5%

2010, Volume 4, No. 3

Table II-C.  Cap on FDIC-Guaranteed Debt for Opt-In Entities
Opt-In Depository Institutions
with no Senior Unsecured
Debt at 9/30/2008
2% Liabilities
as of
Number
9/30/2008

Opt-In Entities with Senior Unsecured
Debt Outstanding at 9/30/2008
Debt Amount
as of
Number
9/30/2008
Initial Cap

June 30, 2010
(dollar figures in millions)
Depository Institutions with Assets
	 <= $10 Billion*������������������������������������
Depository Institutions with Assets
	 > $10 Billion*��������������������������������������
Bank and Thrift Holding Companies,
Noninsured Affiliates�������������������������������
Total���������������������������������������������������������

Total
Entities

Total Initial
Cap

112

$3,442

$4,302

3,967

$30,165

4,079

$34,467

39

269,228

336,535

56

23,767

95

360,303

81
232

397,714
670,384

497,143
837,980

3,282
7,305

N/A
53,932

3,363
7,537

497,143
891,913

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

N/A - Not applicable

Table III-C.  Transaction Account Guarantee Program
June 30,
2009

(dollar figures in millions)
Number of Noninterest-Bearing Transaction Accounts
	 over $250,000��������������������������������������������������������������
Amount in Noninterest-Bearing Transaction .Accounts
	 over $250,000��������������������������������������������������������������
Amount Guaranteed����������������������������������������������������������

Sep. 30,
2009

Dec. 31,
2009

Mar. 31,
2010

June 30,
2010*

% Change
10Q1-10Q2*

681,776

647,755

688,835

308,434

319,742

3.7%

$905,395
$734,951

$928,093
$766,154

$1,009,429
$837,220

$354,675
$277,567

$343,582
$263,647

-3.1%
-5.0%

* Data revised on 9/21/10.

Table IV-C.  Debt Outstanding in Guarantee Program
June 30, 2010
(dollar figures in millions)
Insured Depository Institutions
	 Assets <= $10 Billion�������������������������������������������������������
	 Assets > $10 Billion���������������������������������������������������������
Bank and Thrift Holding Companies,
Noninsured Affiliates�������������������������������������������������������������
	 All Issuers����������������������������������������������������������������������
�

Number

Debt Outstanding

Debt Outstanding
Share of Cap

Cap1 for Group

28
14

$1,586
55,584

$1,667
125,391

95.2%
44.3%

29
71

246,901
304,071

387,485
514,542

63.7%
59.1%

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
S
­ eptember 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
(dollar figures in millions)
Fourth Quarter 2008��������������������������������������������������������������
First Quarter 2009�����������������������������������������������������������������
Second Quarter 2009������������������������������������������������������������
Third Quarter 2009����������������������������������������������������������������
Fourth Quarter 2009��������������������������������������������������������������
First Quarter 2010**
Second Quarter 2010������������������������������������������������������������
	

Debt Guarantee Program
Fees Assessed
Surcharges
Total Fee Amount
$3,437
$3,437
3,433
3,433
1,413
385
1,797
691
280
971
503
207
709
14

Transaction Account
Guarantee Program*
Fees Collected
90
179
182
188

14

207

115

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

$9,491

$872

$10,363

$961

* Pro-rated payment in arrears.
** A review of data systems led us to recognize a nominal fee amount that had been dropped in error from previously reported amounts.

Table VI-C.  Term at Issuance of Debt Instruments Outstanding
June 30, 2010
(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
$0
0
0
0
0
1
1
0.0%

$0
0
0
0
0
0
0
0.0%

$0
0
0
56,626
80,447
139,985
277,057
91.1%

20

$0
0
17
2
0
4
23
0.0%

Other
Senior
Unsecured
Other
Debt
Term Note
$0
0
0
0
3,352
3,713
7,064
2.3%

$0
0
0
4,773
6,003
9,151
19,926
6.6%

All Debt
$0
0
17
61,400
89,801
152,853
304,071

Share
by Term
0.0%
0.0%
0.0%
20.2%
29.5%
50.3%

2010, Volume 4, No. 3

Quarterly Banking Profile

Notes to Users

period 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 com­ arability of source data and reporting differences
p
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
g
­ eographic region. Quarterly and full-year data are provided
for selected indicators, including aggregate condition and
income data, performance ratios, condition ratios, and structural changes, as well as past due, noncurrent, and charge-off
information for loans outstanding and other assets.

ACCOUNTING CHANGES

Extended Net Operating Loss Carryback Period – The Worker,
Homeownership, and Business Assistance Act of 2009,
which was enacted on November 6, 2009, permits banks and
other businesses, excluding those banking organizations that
received capital from the U.S. Treasury under the Troubled
Asset Relief Program, to elect a net operating loss carryback
period of three, four, or five years instead of the usual carryback period of two years for any one tax year ending after
December 31, 2007, and beginning before January 1, 2010.
For calendar year banks, this extended carryback period
applies to either the 2008 or 2009 tax year. The amount of
the net operating loss that can be carried back to the fifth
carryback year is limited to 50 percent of the available taxable income for that fifth year, but this limit does not apply
to other carryback years.
Under generally accepted accounting principles, banks may
not record the effects of this tax change in their balance
sheets and income statements for financial and regulatory
reporting purposes until the period in which the law was
enacted, i.e., the fourth quarter of 2009. Therefore, banks
should recognize the effects of this fourth quarter 2009 tax
law change on their current and deferred tax assets and
l
­iabilities, including valuation allowances for deferred tax
assets, in their Call Reports for December 31, 2009. Banks
should not amend their Call Reports for prior quarters for the
effects of the extended net operating loss carryback period.
The American Recovery and Reinvestment Act of 2009,
which was enacted on February 17, 2009, permits qualifying
small businesses, including FDIC-insured institutions, to elect
a net operating loss carryback period of three, four, or five
years instead of the usual carryback period of two years for
any tax year ending in 2008 or, at the small business’s election, any tax year beginning in 2008. Under generally accepted accounting principles, institutions may not record the
effect of this tax change in their balance sheets and income
statements for financial and regulatory reporting purposes
until the period in which the law was enacted, i.e., the first
quarter of 2009.
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-

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 ­ ompanies
c
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,
c
­ ertain adjustments are made to the OTS Thrift Financial
Reports to provide closer conformance with the reporting
and accounting requirements of the FFIEC Call Reports.
All asset and liability figures used in calculating performance
ratios represent average amounts for the period (beginning-ofFDIC Quarterly	

21

2010, Volume 4, No. 3

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 security before recovery of its amortized cost basis, an other-thantemporary 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
r
­ ecognize 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 regula­
tory reporting purposes in accordance with the FSP’s effective
date.

FDIC Quarterly	

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
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 and Net income.
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
l
­iability 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
22

2010, Volume 4, No. 3

Quarterly Banking Profile
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.
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
p
­ robable, 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 Statements 166 & 167 – In June 2009, the FASB issued
Statement No. 166, Accounting for Transfers of Financial
Assets (FAS 166), and Statement No. 167, Amendments to
FASB Interpretation No. 46(R) (FAS 167), which change
the way entities account for securitizations and special purpose entities. FAS 166 revises FASB Statement No. 140,
Accounting for Transfers and Servicing of Financial Assets
and Extinguishments of Liabilities, by eliminating the concept of a “qualifying special-purpose entity,” creating the concept of a “participating interest,” changing the requirements
for derecognizing financial assets, and requiring additional
disclosures. FAS 167 revises FASB Interpretation No. 46(R),
Consolidation of Variable Interest Entities, by changing how
a bank or other company determines when an entity that is
insufficiently capitalized or is not controlled through voting
or similar rights, i.e., a “variable interest entity” (VIE), should

FDIC Quarterly	

be consolidated. Under FAS 167, a bank must perform a
qualitative assessment to determine whether its variable
i
­nterest or interests give it a controlling financial interest in a
VIE. If a bank’s variable interest or interests provide it with
the power to direct the most significant activities of the VIE,
and the right to receive benefits or the obligation to absorb
losses that could potentially be significant to the VIE, the
bank is the primary beneficiary of, and therefore must con­
solidate, the VIE.
Both FAS 166 and FAS 167 take effect as of the beginning of
each bank’s first annual reporting period that begins after
November 15, 2009, for interim periods therein, and for
interim and annual reporting periods thereafter (i.e., as of
January 1, 2010, for banks with a calendar year fiscal year).
Earlier application is prohibited. Banks are expected to adopt
FAS 166 and FAS 167 for Call Report purposes in accordance with the effective date of these two standards. Also,
FAS 166 has modified the criteria that must be met in order
for a transfer of a portion of a financial asset, such as a loan
participation, to qualify for sale accounting. These changes
apply to transfers of loan participations on or after the effective date of FAS 166. Therefore, banks with a calendar year
fiscal year must account for transfers of loan participations
on or after January 1, 2010, in accordance with FAS 166. In
general, loan participations transferred before the effective
date of FAS 166 (January 1, 2010, for calendar year banks)
are not affected by this new accounting standard and pre-FAS
166 participations that were properly accounted for as sales
under FASB Statement No. 140 will continue to be reported
as having been sold.
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
c
­ urrent 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.
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

23

2010, Volume 4, No. 3

DEFINITIONS (in alphabetical order)

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 un­ erlying variable or index at a stated price
d
(strike price) during a period or on a specified future date,
in return for compensation (such as a fee or premium). The
seller is obligated to purchase or sell the variable or index at
the discretion of the buyer of the contract.
Swaps – obligations between two parties to exchange a
series of cash flows at periodic intervals (settlement dates),
for a specified period. The cash flows of a swap are either
fixed, or determined for each settlement date by multiplying
the quantity (notional principal) of the underlying variable
or index by specified reference rates or prices. Except for
currency swaps, the notional principal is used to calculate
each payment but is not exchanged.
Derivatives underlying risk exposure – the potential exposure
characterized by the level of banks’ concentration in particular underlying instruments, in general. Exposure can result
from market risk, credit risk, and operational risk, as well as,
interest rate risk.
Domestic deposits to total assets – total domestic office deposits
as a percent of total assets on a consolidated basis.
Earning assets – all loans and other investments that earn
interest or dividend income.
Efficiency ratio – Noninterest expense less amortization of
intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net
operating revenues that are absorbed by overhead expenses,
so that a lower value indicates greater efficiency.
Estimated insured deposits – in general, insured deposits are
total domestic deposits minus estimated uninsured deposits.
Beginning March 31, 2008, for institutions that file Call
reports, insured deposits are total assessable deposits minus
estimated uninsured deposits. Beginning September 30, 2009,
insured deposits include deposits in accounts of $100,000 to
$250,000 that are covered by a temporary increase in the
FDIC’s standard maximum deposit insurance amount
(SMDIA).
Failed/assisted institutions – an institution fails when regulators
take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or
another healthy institution. This action may require the
FDIC to provide funds to cover losses. An institution is
defined as “assisted” when the institution remains open and
receives assistance in order to continue operating.
Fair Value – the valuation of various assets and liabilities on
the balance sheet—including trading assets and liabilities,
available-for-sale securities, loans held for sale, assets and
l
­iabilities accounted for under the fair value option, and

All other assets – total cash, balances due from depository
institutions, premises, fixed assets, direct investments in real
estate, investment in unconsolidated subsidiaries, customers’
liability on acceptances outstanding, assets held in trading
accounts, federal funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid
deposit insurance assessments, and other assets.
All other liabilities – bank’s liability on acceptances, limited-life
preferred stock, allowance for estimated off-balance-sheet
credit losses, fair market value of derivatives, and other
liabilities.
Assessment base – 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
p
­ roperty types under construction, as well as loans for land
acquisition and development.
Core capital – common equity capital plus noncumulative
p
­ erpetual 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
associ­ ted with a given issuance.
a
Deposit Insurance Fund (DIF) – The Bank (BIF) and Savings
Association (SAIF) Insurance Funds were merged in 2006 by
the Federal Deposit Insurance Reform Act to form the DIF.
Derivatives notional amount – The notional, or contractual,
amounts of derivatives represent the level of involvement in
the types of derivatives transactions and are not a quantification of market risk or credit risk. Notional amounts represent
the amounts used to calculate contractual cash flows to be
exchanged.
Derivatives credit equivalent amount – the fair value of the
derivative plus an additional amount for potential future
c
­ redit exposure based on the notional amount, the remaining
maturity and type of the contract.

FDIC Quarterly	

24

2010, Volume 4, No. 3

Quarterly Banking Profile
f
­oreclosed assets—involves the use of fair values. During
p
­ eriods 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
s
­ ervicing rights, purchased credit card relationships, and other
identifiable intangible assets. Goodwill is the excess of the
purchase price over the fair market value of the net assets
acquired, less subsequent impairment adjustments. Other
intangible assets are recorded at fair value, less subsequent
quarterly amortization and impairment adjustments.
Loans secured by real estate – includes home equity loans,
junior liens secured by 1-4 family residential properties, and
all other loans secured by real estate.
Loans to individuals – includes outstanding credit card balances
and other secured and unsecured consumer loans.
Long-term assets (5+ years) – loans and debt securities with
remaining maturities or repricing intervals of over five years.
Maximum credit exposure – the maximum contractual credit
exposure remaining under recourse arrangements and other
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
d
­ ividends 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 trans­
actions 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 d­ e, or in nonu
accrual status.
Noncurrent loans & leases – the sum of loans and leases 90 days
or more past due, and loans and leases in nonaccrual status.
Number of institutions reporting – the number of institutions
that actually filed a financial report.
New charters – insured institutions filing quarterly financial
reports for the first time.
Other borrowed funds – federal funds purchased, securities sold
with agreements to repurchase, demand notes issued to the
U.S. Treasury, FHLB advances, other borrowed money, mortgage indebtedness, obligations under capitalized leases and

FDIC Quarterly	

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
v
­ aluation allowance subtracted also includes allowances for
other repossessed assets. Also, for TFR filers the components
of other real estate owned are reported gross of valuation
allowances.
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
r
­ eceivables with terms restructured from the original contract.
Excludes restructured loans and leases that are not in compliance with the modified terms.
Retained earnings – net income less cash dividends on common and preferred stock for the reporting period.
Return on assets – bank net income (including gains or losses
on securities and extraordinary items) as a percentage of aver­
age total (consolidated) assets. The basic yardstick of bank
profitability.
Return on equity – bank net income (including gains or losses
on securities and extraordinary items) as a percentage of
a
­ verage 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

>2
≤2

* As a percentage of risk-weighted assets.

25

2010, Volume 4, No. 3

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
c
­ omposite 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.

Total Base Assessment Rates*
Risk
Category
I

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

A

B

I
12–16 bps
II
22 bps

II
22 bps

III
32 bps

Risk
Category
IV

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.

C

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
t
­ ransmittal date. For institutions with long-term debt issuer
ratings, changes in ratings are effective for assessment pur­
poses 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.
Prepaid Deposit Insurance Assessments – On November 12,
2009, the FDIC Board of Directors adopted a final rule
r
­ equiring insured depository institutions (except those that
are exempted) to prepay their quarterly risk-based deposit
insurance assessments for the fourth quarter of 2009, and for
all of 2010, 2011, and 2012, on December 30, 2009. Each
institution’s regular risk-based deposit insurance assessment
for the third quarter of 2009, which is paid in arrears, also is
payable on December 30, 2009.
Risk-weighted assets – assets adjusted for risk-based capital
definitions which include on-balance-sheet as well as off-­
balance-sheet items multiplied by risk-weights that range
from zero to 200 percent. A conversion factor is used to assign
a balance sheet equivalent amount for selected off-balancesheet accounts.
Securities – excludes securities held in trading accounts.
Banks’ securities portfolios consist of securities designated as
“held-to-maturity,” which are reported at amortized cost
(book value), and securities designated as “available-for-sale,”
reported at fair (market) value.

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

FDIC Quarterly	

Risk
Category
III

Initial base
assessment rate

Supervisory Group

Risk
Category
II

26

2010, Volume 4, No. 3

Quarterly Banking Profile
Securities gains (losses) – realized gains (losses) on held-to-­
maturity and available-for-sale securities, before adjustments
for income taxes. Thrift Financial Report (TFR) filers also
include gains (losses) on the sales of assets held for sale.
Seller’s interest in institution’s own securitizations – the reporting
bank’s ownership interest in loans and other assets that have
been securitized, except an interest that is a form of recourse
or other seller-provided credit enhancement. Seller’s interests
differ from the securities issued to investors by the securitization structure. The principal amount of a seller’s interest is
generally equal to the total principal amount of the pool of
assets included in the securitization structure less the principal amount of those assets attributable to investors, i.e., in the
form of securities issued to investors.
Subchapter S Corporation – a Subchapter S corporation is
t
­ reated 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 (TAGP) provides a full
guarantee of non-interest-bearing deposit transaction
accounts above $250,000, at depository institutions that
elected to participate in the program. On August 26, 2009,
the FDIC Board voted to extend the TAGP six months
beyond its original expiration date to June 30, 2010. On
April 13, 2010, the FDIC Board adopted an interim rule
extending the TAG program for six months through
December 31, 2010, with a possibility of an additional
12-month extension, through December 31, 2011.

Debt Guarantee Program (DGP) 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
e
­ ligible 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. The FDIC
Board adopted a final rule on October 20, 2009, that established a limited six-month emergency guarantee facility
upon expiration of the DGP.
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 com­
mitments 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.

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.

1

FDIC Quarterly	

27

2010, Volume 4, No. 3