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FDIC Quarterly
Quarterly Banking Profile:
Second Quarter 2012
Highlights:
■
■
■
■
■

Second Quarter Net Income Totals $34.5 Billion,
as Earnings Continue to Rise
Improving Asset Quality Remains Key to
Higher Profits
Loan Balances Increase by $102 Billion
The DIF Reserve Ratio Rises 10 Basis Points to
0.32 Percent
15 Institutions Fail During the Second Quarter

2012, Volume 6, Number 3

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

Chairman (Acting)

Martin J. Gruenberg

Director, Division of Insurance
and Research

Arthur J. Murton

Executive Editors

Rae-Ann Miller
Maureen E. Sweeney

Managing Editors

Richard A. Brown
Diane L. Ellis
Paul H. Kupiec
Christopher J. Newbury

Editor

Frank Solomon

Publication Manager

Lynne Montgomery

Media Inquiries

(202) 898-6993

FDIC Quarterly
2012, Volume 6, Number 3

Quarterly Banking Profile: Second Quarter 2012
FDIC-insured institutions reported aggregate net income of $34.5 billion in the second quarter of 2012,
a $5.9 billion improvement from the $28.5 billion in profits the industry reported in the second quarter of
2011. This is the 12th consecutive quarter that earnings have registered a year-over-year increase. Lower
provisions for loan losses and higher gains on sales of loans and other assets accounted for most of the
year-over-year improvement in earnings. See page 1.

Insurance Fund Indicators
The Deposit Insurance Fund (DIF) increased by $7.4 billion to $22.7 billion during the second quarter.
Estimated insured deposits increased by 0.7 percent. The DIF reserve ratio was 0.32 percent at June 30,
2012, up from 0.22 percent at March 31, 2012, and 0.06 percent at June 30, 2011. Fifteen FDIC-insured
institutions failed during the quarter. See page 15.

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

Quarterly Banking Profile

Second Quarter 2012

INSURED INSTITUTION PERFORMANCE
Second Quarter Net Income Totals $34.5 Billion, as Earnings Continue to Rise
■	 Improving Asset Quality Remains Key to Higher Profits
■	 Loan Balances Increase by $102 Billion
■	 “Problem List” Shrinks for Fifth Consecutive Quarter
■	

Banks set aside $14.2 billion in provisions for loan
losses in the second quarter. This amount represents a
$5 billion (26.2 percent) decline from second quarter

2011, and is the smallest quarterly total in five years.
The reduction in provision expenses helped offset a
$287 million (0.3 percent) decline in net interest
income, as the industry’s average net interest margin
fell to a three-year low. The average net interest margin
was 3.46 percent, compared with 3.61 percent a year
earlier, because average asset yields declined faster than
average funding costs. Noninterest income made a positive contribution to the increase in earnings, rising by
$1.6 billion (2.8 percent) from second quarter 2011.
Gains on loan sales and on fair values of financial
instruments contributed to the rise in noninterest
income, while a $4.7 billion decline in trading income
limited the year-over-year improvement. Net operating
revenue (the sum of net interest income and total
noninterest income) was only $1.3 billion (0.8 percent)
higher than in second quarter 2011. Realized gains on
securities and other assets were $1.7 billion (208.2
percent) higher than a year ago. A few large banks
accounted for most of the dollar amounts of the decline
in trading results, increased gains on loan sales and
higher realized gains on securities.

Chart 1

Chart 2

Earnings Improvement Trend Reaches
Three-Year Mark
The benefits of reduced expenses for loan losses
outweighed the drag from declining net interest
margins, as insured institutions posted a 12th consecutive year-over-year increase in quarterly net income.
Banks earned $34.5 billion in the quarter, a $5.9 billion
(20.7 percent) increase compared with second quarter
2011. Almost two out of every three banks (62.7
percent) reported higher earnings than a year ago. Only
10.9 percent were unprofitable, down from 15.7 percent
in second quarter 2011. The average return on assets
(ROA) rose to 0.99 percent from 0.85 percent a year
earlier. This is the third-highest quarterly ROA for the
industry since second quarter 2007.

Banks Reduce Loan-Loss Provisions to
Five-Year Low

Most Banks Are Improving Their Earnings,
While Fewer Are Unprofitable

Quarterly Net Income, 2008–2012

Billions of Dollars
$60

$50
$40
$30
$20

Percentage of All Insured Institutions
80

Securities and Other Gains/Losses, Net
Net Operating Income

19.3

$10

17.4
4.8 0.9

20.9

23.8

35.2
28.7 28.5
21.4

70

34.8 34.5
25.5

60
50

2.1

$0
-$10

40
-1.7

-6.1

30

-12.6

-$20

20
10

-$30
-$40

1

FDIC Quarterly

2 3
2008

-37.8

4

1

2 3
2009

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

4

1

2 3
2010

4

1

2 3
2011

4

0

1 2
2012

1

Percentage of Institutions with Quarterly Losses
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
2006
2007
2008
2009
2010
2011 2012

2012, Volume 6, No. 3

properties, where noncurrents declined by $3.6 billion
(9.2 percent). Well over half of all institutions (58
percent) reported reductions in noncurrent balances
during the quarter.

Net Charge-Offs Decline Across All Loan Categories
Net charge-offs totaled $20.5 billion in the second
quarter, an $8.4 billion (29.1 percent) reduction from
second quarter 2011. This is the eighth consecutive
quarter that charge-offs have declined from year-earlier
levels and represents the lowest quarterly charge-off
total since first quarter 2008. The year-over-year
improvement was led by a $2.2 billion (24.6 percent)
decline in credit card charge-offs, a $1.5 billion (25.2
percent) decline in charge-offs of residential mortgage
loans, and a $1.2 billion (51.5 percent) drop in real
estate construction loan charge-offs. All major loan
categories posted lower charge-offs compared with a
year ago. Half of all insured institutions (50.6 percent)
reported year-over-year declines in charge-offs.

Reserve Drawdowns at Large Banks Surpass
Reserve Buildups at Smaller Institutions

Noncurrent loan balances (loans 90 days or more past
due or in nonaccrual status) declined for a ninth
consecutive quarter, falling by $12.9 billion (4.2
percent). Noncurrent levels fell in all major loan categories. The largest declines occurred in real estate
construction and development loans, where noncurrent
balances fell by $5.1 billion (17.8 percent), and in
real estate loans secured by nonfarm nonresidential

Reserves for loan losses fell by $6.7 billion (3.6
percent) during the quarter, as the $14.2 billion in loss
provisions that banks added to reserves were less than
the $20.5 billion in net charge-offs that were taken out.
More banks (54.4 percent) reported reserve increases
than reported reductions (38.2 percent), but the reductions were concentrated among larger institutions, and
added up to more than the additions. Eight of the 10
largest banks (and 34 of the 50 largest) reduced their
reserves in the second quarter. Reserve balances have
fallen for nine consecutive quarters, and are $86.7
billion (32.9 percent) below the peak level reached at
the end of first quarter 2010. Even with the reduction
in reserves, the larger drop in noncurrent loan balances
during the quarter meant that the industry’s “coverage
ratio” of reserves to noncurrent loans inched up from
60 percent to 60.4 percent between March 31 and
June 30.

Chart 3

Chart 4

Noncurrent Loan Balances Continue to Fall

Quarterly Provisions and Revenues, 2007-2012

Quarterly Net Interest Margins, 2006–2012

Billions of Dollars
$180 Quarterly Loan-Loss Provision

Percent
4.5

$160
$140

4.0

$120
Quarterly Net Operating Revenue*

$100

3.5

$80
$60

Assets < $1 Billion

$40

3.0

Assets $10 Billion - $100 Billion

$20
$0

Assets $1 Billion - $10 Billion
Assets > $100 Billion

2.5

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

*Net operating revenue = net interest income + noninterest income

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 3 4 1 2
2006
2007
2008
2009
2010
2011 2012

2012, Volume 6, No. 3

Quarterly Banking Profile
percent), while home equity lines of credit declined for
the 13th quarter in a row, falling by $10.2 billion (1.7
percent). Loans to small businesses and farms posted a
$1.5 billion (0.2 percent) increase, driven primarily by
seasonal demand for agri­cultural credit. More than 60
percent of institutions reported growth in total loan
balances during the quarter. Banks reduced their mortgage-backed securities holdings by $33.1 billion (1.9
percent), and increased their h
­ oldings of U.S. Treasury
securities by $20.1 billion (12 percent).

Retained Earnings Provide a Boost to Capital
Insured institutions continued to build their capital in
the second quarter. Total equity capital increased by
$20.3 billion (1.3 percent), with retained earnings
contributing $14.9 billion to capital growth. This is the
second-highest quarterly total for retained earnings
since third quarter 2006. Dividends were $763 million
(3.8 percent) lower than in second quarter 2011. Tier 1
regulatory capital rose by $14 billion (1.1 percent), but
total risk-based capital was basically unchanged (up
$524 million, or 0.04 percent), due to the decline in
reserves, declines in deferred tax assets, and declines in
intangible assets. At midyear, almost 97 percent of all
insured institutions, representing more than 99 percent
of insured institution assets, met or exceeded the
requirements for “well-capitalized” institutions as
defined for Prompt Corrective Action purposes.

Nondeposit Liabilities Increase
Deposits increased by $61.6 billion (0.6 percent) during
the quarter. Deposits in domestic offices rose by $88.1
billion (1.0 percent), while foreign office deposits fell by
$26.5 billion (1.8 percent). Much of the growth in
domestic deposits ($71.7 billion) consisted of noninterest-bearing transaction accounts with balances greater
than $250,000 that are temporarily fully covered by the
FDIC. The portion of these deposits that is above the
$250,000 basic coverage limit increased by $65.7 billion
(5.0 percent). In addition to the increase in largedenomination domestic deposits, insured institutions
increased their nondeposit liabilities for the first time in
seven quarters. Securities sold under repurchase agreements increased by $28 billion (6.7 percent), and
Federal Home Loan Bank advances rose by $19.8
billion (6.5 percent).

Loans Increase for Fourth Time in Last Five Quarters
Total assets increased by $105.3 billion (0.8 percent), as
loan balances rose for the fourth time in the last five
quarters. Total loans and leases grew by $102 billion
(1.4 percent), with loans to commercial and industrial
(C&I) borrowers increasing by $48.9 billion (3.6
percent), residential mortgage loans rising by $16.6
billion (0.9 percent), and credit card balances growing
by $14.7 billion (2.3 percent). Balances of real estate
construction and development loans fell for a 17th
consecutive quarter, declining by $10.9 billion (4.8

Chart 5

Chart 6
Quarterly Change in Loan Balances, 2007–2012

Noncurrent Loans and Loan Losses Continue to Fall,
but Remain Well Above Pre-Crisis Levels

Billions of Dollars
$300

Percent
6

$200

Noncurrent Loan Rate

5

237.3
202.6

$250
$150

134.1

$100
$50 43.4

4

$0

3

0

-133.3

-106.9

-126.0

-210.1

1 2 3 4 1
2007

2 3 4 1 2 3 4 1 2 3 4
2010
2008
2009

1 2 3 4 1 2
2011
2012

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

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
2006
2007
2008
2009
2010
2011 2012

FDIC Quarterly

-6.7 -13.9
-63.5

-$200
-$250

23.9

-116.2 -108.6
-139.6

-$150
Quarterly Net Charge-Off Rate

28.1
-6.3

-$100

2

102.0

66.9

61.4

-$50

1

221.0*

188.9

3

2012, Volume 6, No. 3

More Than a Year Since Last New Charter
During the second quarter, the number of insured institutions reporting financial results declined from 7,308
to 7,246. Forty-five institutions were merged into other
institutions, and 15 institutions failed. No new charters
were added during the quarter. This is the fourth quarter in a row in which no new charters have been added.
It has been more than six quarters since the last time a
new charter was created other than to absorb a failing
bank. The number of full-time equivalent employees at
FDIC-insured institutions increased from 2,102,280 to
2,108,200. The number of institutions on the FDIC’s
“Problem List” fell for a fifth consecutive quarter, from
772 to 732. Total assets of “problem” institutions
declined from $291 billion to $282 billion.
Author:

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

Chart 7

Chart 8
Quarterly Changes in the Number of
Troubled Institutions, 2007–2012

Deposit Inflows Have Slowed in 2012
Quarterly Change in Domestic Deposits (Billions of Dollars)
$300

200

280

$250

234

Quarterly Failures

175

253

Net Quarterly Change in
Number of Problem Banks

150
125

$200
135

$100
70

88
68

0

$50
$0

-25
-50
Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

FDIC Quarterly

4

21

9

50
25

41

12

75
118

45

24

100

$150

50

2

1
3

0
8

1 2
1
27
11 14
4

81
54

53

111

136

45

150

41
73

54

30

31 24 26 22 26 18
16 15
4
-23 -21 -31
-41 -40

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

2012, Volume 6, 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��������������������������������������������������������������������������������������

2012**
0.99
8.84
9.25
2.40
1.13
3.15
3.49
15.60
7,246
6,222
1,024
10.59
732
$282
31
0

2011**
0.85
7.60
9.20
2.76
1.71
3.05
3.64
56.10
7,513
6,413
1,100
16.08
865
$372
48
0

2011
0.88
7.80
9.07
2.60
1.55
4.30
3.60
43.81
7,357
6,291
1,066
16.11
813
$319
92
0

2010
0.65
5.85
8.89
3.11
2.55
1.77
3.76
1601.58
7,658
6,530
1,128
22.11
884
$390
157
0

2009
-0.07
-0.72
8.60
3.37
2.52
-5.45
3.49
-155.72
8,012
6,840
1,172
30.84
702
$403
140
8

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

2007
0.81
7.75
7.97
0.95
0.59
9.88
3.29
-27.59
8,534
7,284
1,250
12.10
76
$22
3
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
2012
7,246
2,108,200

1st Quarter
2012
7,308
2,102,280

2nd Quarter
2011
7,513
2,106,615

%Change
11Q2-12Q2
-3.6
0.1

$14,031,008
4,086,561
1,875,341
1,058,389
217,392
580,219
1,423,101
1,282,013
664,260
64,008
659,185
2,038
7,512,830
176,494
7,336,336
2,937,424
41,788
366,741
3,348,719

$13,925,678
4,086,298
1,858,774
1,057,027
228,319
590,368
1,374,171
1,266,272
649,564
58,270
627,911
2,100
7,410,823
183,159
7,227,664
2,930,574
44,803
371,412
3,351,225

$13,602,560
4,125,336
1,831,108
1,060,233
274,392
615,270
1,236,824
1,288,194
668,340
57,668
610,588
2,311
7,316,299
207,714
7,108,585
2,721,869
51,284
388,396
3,332,427

3.1
-0.9
2.4
-0.2
-20.8
-5.7
15.1
-0.5
-0.6
11.0
8.0
-11.8
2.7
-15.0
3.2
7.9
-18.5
-5.6
0.5

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

14,031,008
10,322,526
8,913,721
1,408,805
1,389,986
116,634
594,562
1,607,300
1,588,980

13,925,678
10,260,938
8,825,629
1,435,309
1,381,659
129,351
566,745
1,586,985
1,568,659

13,602,560
9,765,598
8,225,633
1,539,965
1,602,751
138,874
540,699
1,554,638
1,535,726

3.1
5.7
8.4
-8.5
-13.3
-16.0
10.0
3.4
3.5

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

83,762
292,186
106,757
1,713,754
12,271,841
325,638
5,865,751
16,896,009
986,273
224,998,167

89,822
305,044
123,892
1,746,866
12,182,048
305,826
5,845,833
17,080,584
973,032
230,364,892

102,694
321,178
119,711
1,546,189
11,819,115
341,208
5,767,176
16,926,443
970,638
251,133,282

-18.4
-9.0
-10.8
10.8
3.8
-4.6
1.7
-0.2
1.6
-10.4

(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
2012
$247,050
34,853
212,197
28,481
122,123
209,753
4,429
30,818
-12
69,684
69,305
42,203
40,651
28,655
66,417

First Half
2011
$257,495
45,610
211,885
40,031
116,531
205,385
706
26,271
237
57,673
57,331
62,252
35,419
21,912
57,454

%Change
-4.1
-23.6
0.2
-28.9
4.8
2.1
527.3
17.3
N/M
20.8
20.9
-32.2
14.8
30.8
15.6

2nd Quarter
2012
$122,682
17,055
105,626
14,169
59,817
103,364
2,555
15,679
-126
34,661
34,452
20,462
19,552
14,901
32,895

2nd Quarter
2011
$128,468
22,554
105,913
19,196
58,208
103,662
829
13,509
132
28,716
28,534
28,851
20,314
8,219
28,423

*** Prior to 2012, does not include data for insured savings institutions that file Thrift Financial Reports. Beginning in 2012, all insured institutions file Call Reports.

FDIC Quarterly

5

%Change
11Q2-12Q2
-4.5
-24.4
-0.3
-26.2
2.8
-0.3
208.2
16.1
N/M
20.7
20.7
-29.1
-3.8
81.3
15.7

N/M - Not Meaningful

2012, Volume 6, No. 3

TABLE III-A. Second Quarter 2012, All FDIC-Insured Institutions
Asset Concentration Groups*
SECOND QUARTER
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������
7,246
Commercial banks�������������������������������������
6,222
Savings institutions�����������������������������������
1,024
Total assets (in billions)������������������������������������
$14,031.0
Commercial banks�������������������������������������
12,889.8
Savings institutions�����������������������������������
1,141.2
Total deposits (in billions)���������������������������������
10,322.5
Commercial banks�������������������������������������
9,446.8
Savings institutions�����������������������������������
875.7
Bank net income (in millions)���������������������������
34,452
Commercial banks�������������������������������������
31,560
Savings institutions�����������������������������������
2,893

Credit
Card
International Agricultural Commercial
Banks
Banks
Banks
Lenders
18
5
1,542
3,636
14
5
1,521
3,288
4
0
21
348
$567.2
$3,710.9
$220.4
$4,160.2
502.8
3,710.9
215.5
3,827.8
64.4
0.0
4.9
332.5
314.5
2,556.6
182.3
3,232.8
273.8
2,556.6
179.5
2,984.9
40.7
0.0
2.9
247.9
4,183
6,506
704
10,008
3,294
6,506
670
9,327
890
0
33
681

Mortgage Consumer
Lenders
Lenders
712
51
216
38
496
13
$825.3
$97.1
266.2
38.7
559.0
58.5
636.9
83.4
198.9
31.2
438.0
52.2
1,751
441
817
244
934
197

Other
Specialized
All Other
<$1 Billion
<$1 Billion
402
815
370
716
32
99
$64.5
$144.3
58.3
119.4
6.2
24.9
51.7
121.1
47.5
101.0
4.2
20.1
180
327
174
304
6
22

All Other
>$1 Billion
65
54
11
$4,241.1
4,150.2
90.8
3,143.2
3,073.5
69.7
10,351
10,223
128

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����������������

4.01
0.56
3.46
1.71
2.96
0.41
0.94
1.43
0.99
8.73
1.10

10.81
0.90
9.90
4.33
6.21
2.44
3.00
4.68
2.97
19.86
4.05

3.20
0.55
2.65
1.50
2.71
0.21
0.62
0.96
0.71
7.77
1.37

4.50
0.73
3.77
0.64
2.52
0.16
1.22
1.50
1.28
11.23
0.21

4.35
0.61
3.74
1.20
2.98
0.37
0.92
1.24
0.96
8.13
0.76

3.53
0.76
2.77
0.76
1.86
0.31
0.81
1.25
0.85
7.98
0.64

5.11
0.71
4.40
2.64
2.89
1.17
1.81
2.82
1.81
18.90
1.52

3.37
0.63
2.74
3.71
4.41
0.10
1.09
1.69
1.08
7.65
0.54

4.32
0.74
3.58
1.18
3.19
0.25
0.84
1.10
0.91
7.94
0.43

3.45
0.39
3.06
2.26
2.93
0.37
0.96
1.61
0.98
7.97
0.92

69.25
61.29
10.92
62.66

74.45
44.78
5.56
44.44

43.61
70.95
0.00
60.00

121.91
60.83
4.28
62.06

73.97
64.93
14.52
67.77

89.37
54.54
10.96
53.37

108.64
41.47
5.88
56.86

69.70
70.76
9.95
49.00

108.78
71.21
8.34
56.93

75.42
58.58
10.77
58.46

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

0
45
15

0
0
0

0
0
0

0
5
0

0
37
12

0
2
1

0
0
0

0
0
0

0
0
2

0
1
0

PRIOR SECOND QUARTERS
(The way it was...)
Return on assets (%)��������������������������������2011
������������������������������������� 2009
������������������������������������� 2007

0.85
-0.38
1.22

3.96
-7.92
3.34

0.46
-0.54
0.99

1.12
0.78
1.26

0.71
-0.20
1.18

0.55
0.56
0.91

1.67
0.64
3.04

1.94
1.28
2.31

0.80
0.70
1.10

0.80
0.30
1.26

Net charge-offs to loans & leases (%)�����2011
������������������������������������� 2009
������������������������������������� 2007

1.59
2.56
0.49

5.58
10.78
3.89

1.43
3.07
0.60

0.37
0.61
0.15

1.27
2.07
0.28

1.03
1.27
0.25

1.79
2.80
1.85

0.41
0.71
0.25

0.48
0.51
0.18

1.24
2.31
0.32

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

FDIC Quarterly

6

2012, Volume 6, No. 3

Quarterly Banking Profile
TABLE III-A. Second Quarter 2012, All FDIC-Insured Institutions
Asset Size Distribution
SECOND QUARTER
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������������
7,246
Commercial banks�������������������������������������������
6,222
Savings institutions�����������������������������������������
1,024
Total assets (in billions)������������������������������������������
$14,031.0
Commercial banks�������������������������������������������
12,889.8
Savings institutions�����������������������������������������
1,141.2
Total deposits (in billions)���������������������������������������
10,322.5
Commercial banks�������������������������������������������
9,446.8
Savings institutions�����������������������������������������
875.7
Bank net income (in millions)���������������������������������
34,452
Commercial banks�������������������������������������������
31,560
Savings institutions�����������������������������������������
2,893

Geographic Regions*

Less than
$100
$1 Billion
Greater
$100
Million to
to
than
Million
$1 Billion $10 Billion $10 Billion New York
2,342
4,244
553
107
898
2,085
3,614
435
88
479
257
630
118
19
419
$135.4
$1,274.7
$1,425.9 $11,195.0
$2,877.3
121.0
1,057.1
1,132.0
10,579.8
2,317.0
14.4
217.7
293.9
615.2
560.3
114.9
1,062.1
1,106.2
8,039.4
2,089.6
103.2
888.5
882.0
7,573.1
1,663.1
11.7
173.6
224.2
466.3
426.5
235
2,581
5,141
26,496
6,089
230
2,283
4,514
24,533
5,312
5
299
627
1,963
777

Atlanta
929
831
98
$2,934.8
2,838.8
96.0
2,181.4
2,110.7
70.7
5,278
5,150
128

Chicago
1,540
1,277
263
$3,193.2
3,073.8
119.4
2,239.4
2,149.1
90.3
7,116
6,779
338

Kansas
City
1,754
1,668
86
$3,000.2
2,939.5
60.7
2,250.9
2,202.1
48.8
7,614
7,498
117

San
Dallas
Francisco
1,524
601
1,420
547
104
54
$831.6
$1,194.0
734.7
986.0
96.9
208.0
681.8
879.4
601.7
720.1
80.1
159.3
2,164
6,191
1,825
4,996
339
1,195

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����������������������

4.01
0.56
3.46
1.71
2.96
0.41
0.94
1.43
0.99
8.73
1.10

4.49
0.73
3.76
0.95
3.40
0.22
0.62
0.83
0.69
5.83
0.43

4.53
0.79
3.75
1.07
3.18
0.37
0.74
1.04
0.81
7.49
0.65

4.52
0.71
3.81
1.78
3.10
0.39
1.41
1.80
1.44
12.24
0.76

3.88
0.51
3.37
1.79
2.91
0.41
0.91
1.44
0.95
8.43
1.22

4.33
0.63
3.69
1.44
2.96
0.47
0.82
1.31
0.85
6.86
1.34

3.72
0.46
3.26
1.90
3.13
0.52
0.68
1.11
0.72
5.96
1.11

3.29
0.50
2.79
1.62
2.82
0.14
0.78
1.21
0.89
9.99
0.84

4.40
0.62
3.79
1.66
2.91
0.53
1.02
1.51
1.02
9.21
1.34

4.28
0.54
3.74
1.29
3.16
0.25
0.99
1.35
1.04
9.50
0.56

4.70
0.62
4.08
2.58
2.88
0.49
2.07
3.01
2.09
15.25
0.93

69.25
61.29
10.92
62.66

92.11
77.58
14.86
57.05

90.60
70.26
9.43
64.84

83.03
58.52
7.05
68.35

66.21
60.52
3.74
69.16

65.57
61.35
11.02
56.01

84.00
65.67
20.67
64.05

36.67
69.15
10.19
62.01

72.74
57.20
7.64
63.97

74.64
66.80
7.48
62.99

86.64
44.89
15.81
67.39

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

0
45
15

0
14
5

0
28
10

0
3
0

0
0
0

0
5
3

0
10
7

0
2
1

0
10
1

0
6
2

0
12
1

PRIOR SECOND QUARTERS
(The way it was…)
Return on assets (%)�������������������������������������� 2011
������������������������������������������� 2009
��������������������������������������������2007

0.85
-0.38
1.22

0.53
0.03
0.85

0.53
-0.17
1.14

0.93
-0.83
1.11

0.88
-0.34
1.25

1.20
-1.91
1.05

0.44
-0.04
1.25

0.71
0.18
1.05

1.23
0.74
1.54

0.87
0.21
1.15

0.83
-0.71
1.41

Net charge-offs to loans & leases (%)����������� 2011
������������������������������������������� 2009
��������������������������������������������2007

1.59
2.56
0.49

0.63
0.91
0.14

0.91
1.14
0.18

1.22
2.23
0.33

1.76
2.89
0.57

1.81
2.91
0.84

1.69
2.26
0.26

1.30
2.40
0.37

1.84
2.56
0.63

0.96
1.32
0.23

1.53
3.39
0.59

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

FDIC Quarterly

7

2012, Volume 6, No. 3

TABLE IV-A. First Half 2012, All FDIC-Insured Institutions
Asset Concentration Groups*
FIRST HALF
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������
7,246
Commercial banks�������������������������������������
6,222
Savings institutions�����������������������������������
1,024
Total assets (in billions)������������������������������������
$14,031.0
Commercial banks�������������������������������������
12,889.8
Savings institutions�����������������������������������
1,141.2
Total deposits (in billions)���������������������������������
10,322.5
Commercial banks�������������������������������������
9,446.8
Savings institutions�����������������������������������
875.7
Bank net income (in millions)���������������������������
69,305
Commercial banks�������������������������������������
63,604
Savings institutions�����������������������������������
5,702
Performance Ratios (annualized, %)
Yield on earning assets������������������������������������
Cost of funding earning assets������������������������
Net interest margin������������������������������������
Noninterest income to assets���������������������������
Noninterest expense to assets�������������������������
Loan and lease loss provision to assets����������
Net operating income to assets�����������������������
Pretax return on assets������������������������������������
Return on assets�����������������������������������������������
Return on equity�����������������������������������������������
Net charge-offs to loans and leases����������������
Loan and lease loss provision to
net charge-offs������������������������������������������
Efficiency ratio��������������������������������������������������
% of unprofitable institutions����������������������������
% of institutions with earnings gains����������������

Credit
Card
International Agricultural Commercial
Banks
Banks
Banks
Lenders
18
5
1,542
3,636
14
5
1,521
3,288
4
0
21
348
$567.2
$3,710.9
$220.4
$4,160.2
502.8
3,710.9
215.5
3,827.8
64.4
0.0
4.9
332.5
314.5
2,556.6
182.3
3,232.8
273.8
2,556.6
179.5
2,984.9
40.7
0.0
2.9
247.9
8,893
13,861
1,394
18,712
7,123
13,861
1,332
17,419
1,769
0
62
1,294

Mortgage Consumer
Lenders
Lenders
712
51
216
38
496
13
$825.3
$97.1
266.2
38.7
559.0
58.5
636.9
83.4
198.9
31.2
438.0
52.2
3,426
870
1,636
468
1,790
402

Other
Specialized
All Other
<$1 Billion
<$1 Billion
402
815
370
716
32
99
$64.5
$144.3
58.3
119.4
6.2
24.9
51.7
121.1
47.5
101.0
4.2
20.1
395
664
361
604
35
60

All Other
>$1 Billion
65
54
11
$4,241.1
4,150.2
90.8
3,143.2
3,073.5
69.7
21,090
20,799
290

4.06
0.57
3.49
1.75
3.01
0.41
0.95
1.44
0.99
8.84
1.13

10.86
0.92
9.93
3.96
5.93
2.12
3.16
4.94
3.14
20.83
4.09

3.26
0.56
2.70
1.77
2.88
0.23
0.70
1.02
0.75
8.34
1.43

4.52
0.76
3.76
0.63
2.51
0.15
1.22
1.50
1.28
11.23
0.19

4.38
0.64
3.75
1.20
3.01
0.37
0.87
1.21
0.91
7.68
0.76

3.53
0.76
2.77
0.79
1.87
0.34
0.80
1.24
0.84
7.90
0.79

5.21
0.74
4.47
2.36
2.84
1.06
1.81
2.78
1.81
18.91
1.54

3.46
0.65
2.80
3.65
4.24
0.11
1.26
1.76
1.18
8.41
0.37

4.37
0.77
3.60
1.19
3.20
0.24
0.86
1.13
0.93
8.12
0.38

3.51
0.40
3.10
2.20
2.96
0.39
0.95
1.57
1.00
8.17
0.96

67.48
61.60
10.59
67.87

63.76
43.96
0.00
66.67

47.69
69.73
0.00
60.00

128.71
60.83
3.70
69.97

74.89
65.46
14.19
71.84

77.19
54.44
11.52
57.02

96.46
41.90
5.88
58.82

108.31
68.26
9.70
56.22

114.50
71.03
7.85
62.09

75.76
59.66
9.23
67.69

87.46

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��������������������

91.17

84.96

92.18

89.14

94.31

96.49

91.68

91.76

85.51

2.35
60.40

4.33
314.56

3.34
83.93

1.59
103.76

1.92
63.79

1.33
37.24

2.00
108.06

2.16
78.06

1.61
75.32

2.20
38.11

2.40
11.32
9.25
13.21
15.27
71.07
52.29
63.53

1.12
14.76
12.92
13.95
16.33
140.51
77.92
50.74

1.47
9.04
7.37
12.04
14.37
48.40
33.35
38.35

1.32
11.50
10.27
14.89
16.03
72.36
59.85
82.71

2.61
11.91
10.09
13.16
14.91
83.93
65.22
76.94

2.31
10.75
9.99
20.73
21.72
70.35
54.29
77.08

1.34
9.69
9.48
13.38
14.49
80.79
69.39
85.87

1.20
14.67
13.08
30.03
31.15
35.03
28.07
79.24

1.66
11.51
10.76
18.57
19.72
63.67
53.45
83.94

3.31
12.38
9.23
12.59
14.98
70.02
51.90
69.03

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

0
72
31

0
0
0

0
1
0

0
9
0

0
55
26

0
5
3

0
0
0

0
0
0

0
1
2

0
1
0

PRIOR FIRST HALVES
(The way it was...)
Number of institutions������������������������������2011
������������������������������������� 2009
������������������������������������� 2007

7,513
8,195
8,614

20
24
26

4
5
4

1,544
1,551
1,645

3,953
4,637
4,731

716
808
805

72
80
118

347
294
377

794
743
851

63
53
57

Total assets (in billions)����������������������������2011
������������������������������������� 2009
������������������������������������� 2007

$13,602.6
13,279.7
12,261.4

$656.0
464.5
395.0

$3,328.1
3,204.0
2,544.3

$204.2
170.1
155.6

$4,132.2
5,947.0
4,789.0

$773.8
933.4
1,551.0

$97.7
84.0
117.7

$50.0
36.0
42.4

$129.1
101.7
113.1

$4,231.4
2,338.9
2,553.3

Return on assets (%)��������������������������������2011
������������������������������������� 2009
������������������������������������� 2007

0.85
-0.26
1.21

3.81
-9.56
3.58

0.53
0.05
0.96

1.09
0.88
1.22

0.66
-0.18
1.15

0.49
0.57
0.91

1.60
0.28
2.54

1.65
0.73
2.23

0.80
0.79
1.07

0.84
0.46
1.27

Net charge-offs to loans & leases (%)�����2011
������������������������������������� 2009
������������������������������������� 2007

1.71
2.25
0.47

6.12
9.57
3.84

1.69
2.73
0.58

0.33
0.47
0.15

1.29
1.76
0.25

1.01
1.13
0.24

1.86
2.71
1.86

0.57
0.81
0.23

0.45
0.42
0.16

1.32
2.04
0.31

Noncurrent assets plus
OREO to assets (%)��������������������������2011
������������������������������������� 2009
������������������������������������� 2007

2.76
2.78
0.62

1.51
2.56
1.28

1.76
2.25
0.41

1.62
1.45
0.81

3.38
3.36
0.70

2.72
2.96
0.81

1.00
1.14
0.63

1.01
0.72
0.23

1.88
1.30
0.60

3.27
2.23
0.46

Equity capital ratio (%)�����������������������������2011
������������������������������������� 2009
������������������������������������� 2007

11.29
10.42
10.43

17.21
21.20
23.96

8.28
8.42
7.64

11.26
11.08
11.13

11.86
10.54
10.68

10.56
9.47
10.22

9.93
9.95
13.73

15.65
16.59
20.98

11.51
11.36
11.10

12.29
10.91
10.39

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

FDIC Quarterly

8

2012, Volume 6, No. 3

Quarterly Banking Profile
TABLE IV-A. First Half 2012, All FDIC-Insured Institutions
Asset Size Distribution
FIRST HALF
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������������
7,246
Commercial banks�������������������������������������������
6,222
Savings institutions�����������������������������������������
1,024
Total assets (in billions)������������������������������������������
$14,031.0
Commercial banks�������������������������������������������
12,889.8
Savings institutions�����������������������������������������
1,141.2
Total deposits (in billions)���������������������������������������
10,322.5
Commercial banks�������������������������������������������
9,446.8
Savings institutions�����������������������������������������
875.7
Bank net income (in millions)���������������������������������
69,305
Commercial banks�������������������������������������������
63,604
Savings institutions�����������������������������������������
5,702
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*

Less than
$100
$1 Billion
Greater
$100
Million to
to
than
Million
$1 Billion $10 Billion $10 Billion New York
2,342
4,244
553
107
898
2,085
3,614
435
88
479
257
630
118
19
419
$135.4
$1,274.7
$1,425.9 $11,195.0
$2,877.3
121.0
1,057.1
1,132.0
10,579.8
2,317.0
14.4
217.7
293.9
615.2
560.3
114.9
1,062.1
1,106.2
8,039.4
2,089.6
103.2
888.5
882.0
7,573.1
1,663.1
11.7
173.6
224.2
466.3
426.5
487
5,205
8,904
54,710
12,939
475
4,605
7,550
50,974
11,434
12
600
1,355
3,736
1,505

Atlanta
929
831
98
$2,934.8
2,838.8
96.0
2,181.4
2,110.7
70.7
11,370
11,106
265

Chicago
1,540
1,277
263
$3,193.2
3,073.8
119.4
2,239.4
2,149.1
90.3
14,038
13,477
561

Kansas
City
1,754
1,668
86
$3,000.2
2,939.5
60.7
2,250.9
2,202.1
48.8
15,595
15,318
277

San
Dallas
Francisco
1,524
601
1,420
547
104
54
$831.6
$1,194.0
734.7
986.0
96.9
208.0
681.8
879.4
601.7
720.1
80.1
159.3
4,475
10,888
3,783
8,486
692
2,402

4.06
0.57
3.49
1.75
3.01
0.41
0.95
1.44
0.99
8.84
1.13

4.52
0.76
3.76
0.94
3.37
0.21
0.65
0.85
0.71
6.08
0.39

4.57
0.82
3.75
1.05
3.16
0.36
0.76
1.05
0.82
7.61
0.61

4.57
0.74
3.83
1.55
3.09
0.40
1.20
1.62
1.25
10.71
0.76

3.92
0.52
3.40
1.87
2.98
0.42
0.95
1.46
0.99
8.76
1.27

4.33
0.65
3.69
1.47
2.93
0.44
0.88
1.38
0.91
7.33
1.35

3.79
0.48
3.32
1.85
3.15
0.49
0.71
1.16
0.78
6.45
1.19

3.35
0.51
2.83
1.86
3.05
0.18
0.79
1.19
0.88
9.95
0.87

4.45
0.63
3.82
1.75
2.96
0.56
1.07
1.53
1.05
9.48
1.39

4.31
0.56
3.75
1.34
3.14
0.26
1.04
1.41
1.09
9.91
0.56

4.73
0.64
4.10
2.19
2.83
0.47
1.81
2.72
1.85
13.55
0.91

67.48
61.60
10.59
67.87

96.08
77.05
14.22
62.04

94.00
69.93
9.26
70.45

82.61
60.71
6.87
72.15

64.17
60.66
2.80
71.03

61.31
60.45
10.13
60.36

73.98
66.20
20.13
67.81

45.32
70.03
10.45
67.34

74.06
56.63
7.24
70.64

76.82
65.46
6.82
68.44

83.72
46.85
16.14
71.05

87.46

91.08

91.82

90.78

86.50

87.90

86.07

86.26

86.80

91.12

92.15

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���������������������������

2.35
60.40

1.80
77.86

1.84
65.46

1.95
56.47

2.49
60.31

2.12
82.09

2.58
44.12

2.45
60.08

2.69
64.72

1.81
67.17

1.76
81.05

2.40
11.32
9.25
13.21
15.27
71.07
52.29
63.53

2.21
11.98
11.25
18.41
19.54
66.17
56.13
84.83

2.72
10.90
10.24
15.42
16.63
73.82
61.50
83.25

2.86
11.93
10.55
15.63
16.89
79.15
61.40
77.11

2.30
11.29
8.94
12.60
14.87
69.67
50.03
59.30

1.54
12.34
9.87
14.43
16.07
71.36
51.83
64.36

3.62
12.21
9.07
13.03
15.55
72.79
54.11
70.64

2.19
9.02
7.42
10.82
13.49
64.49
45.23
57.48

2.56
11.04
9.26
12.83
14.66
70.51
52.90
53.77

2.32
11.03
9.88
14.53
16.05
73.33
60.13
81.67

1.65
13.78
12.64
16.93
18.29
82.57
60.81
72.12

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

0
72
31

0
26
10

0
38
20

0
6
1

0
2
0

0
13
4

0
14
13

0
4
6

0
15
3

0
12
4

0
14
1

PRIOR FIRST HALVES
(The way it was...)
Number of institutions������������������������������������ 2011
������������������������������������������� 2009
��������������������������������������������2007

7,513
8,195
8,614

2,550
3,013
3,582

4,296
4,484
4,371

561
582
538

106
116
123

932
996
1,070

990
1,164
1,216

1,575
1,685
1,806

1,804
1,914
2,000

1,570
1,680
1,750

642
756
772

Total assets (in billions)���������������������������������� 2011
������������������������������������������� 2009
��������������������������������������������2007

$13,602.6
13,279.7
12,261.4

$146.0
165.4
189.8

$1,272.9
1,347.9
1,295.4

$1,422.1
1,500.8
1,410.7

$10,761.6
10,265.6
9,365.4

$2,769.3
2,437.9
2,261.8

$2,916.0
3,493.7
3,004.5

$3,119.5
3,124.6
2,830.9

$1,672.3
1,063.0
910.0

$788.5
777.4
674.4

$2,337.0
2,383.0
2,579.7

Return on assets (%)�������������������������������������� 2011
������������������������������������������� 2009
��������������������������������������������2007

0.85
-0.26
1.21

0.53
0.15
0.85

0.54
0.06
1.11

0.82
-0.50
1.13

0.90
-0.28
1.24

1.12
-1.86
1.09

0.53
0.15
1.23

0.69
0.15
1.06

1.21
0.65
1.64

0.90
-0.25
1.13

0.90
-0.17
1.30

Net charge-offs to loans & leases (%)����������� 2011
������������������������������������������� 2009
��������������������������������������������2007

1.71
2.25
0.47

0.54
0.76
0.14

0.84
0.95
0.16

1.29
1.81
0.29

1.92
2.57
0.56

2.05
2.56
0.82

1.75
1.97
0.24

1.36
2.01
0.34

1.93
2.35
0.63

0.89
1.13
0.21

1.74
3.03
0.58

Noncurrent assets plus
OREO to assets (%)�������������������������������� 2011
������������������������������������������� 2009
��������������������������������������������2007

2.76
2.78
0.62

2.40
2.04
0.81

3.34
2.94
0.75

3.36
3.44
0.67

2.61
2.67
0.59

1.87
1.83
0.60

3.82
3.08
0.42

2.56
2.87
0.63

3.82
3.12
1.10

2.92
2.44
0.66

1.92
3.13
0.68

Equity capital ratio (%)����������������������������������� 2011
������������������������������������������� 2009
��������������������������������������������2007

11.29
10.42
10.43

11.84
12.44
13.42

10.58
9.92
10.48

11.87
10.60
11.28

11.29
10.42
10.24

12.80
11.79
12.48

12.05
10.97
9.83

8.49
8.55
9.01

11.79
10.79
10.00

11.02
9.96
10.57

12.02
10.63
11.01

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

FDIC Quarterly

9

2012, Volume 6, No. 3

TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Concentration Groups*
June 30, 2012

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

1.43
1.15
0.67
0.43
0.91
2.21
0.35
1.48
1.36
1.61
0.20
1.11

0.98
0.00
0.00
0.00
2.60
0.71
1.06
1.30
1.29
1.63
0.02
1.28

2.03
1.28
0.33
0.09
1.31
3.15
0.33
1.74
1.59
2.00
0.15
1.22

0.81
1.06
0.73
0.52
0.59
1.51
1.08
1.52
1.17
1.55
0.36
0.77

1.01
1.28
0.68
0.49
0.73
1.57
0.41
1.45
1.40
1.45
0.27
0.87

1.21
1.16
0.66
0.60
0.64
1.34
0.74
1.04
1.08
1.03
0.10
1.16

0.85
0.54
1.21
1.22
0.67
1.02
0.99
1.51
0.71
1.89
1.40
1.35

1.48
1.06
1.18
1.10
0.68
1.99
1.11
1.98
1.51
2.00
0.56
1.44

1.51
1.23
1.27
1.08
0.65
1.79
1.17
1.80
0.59
1.83
0.56
1.44

1.91
0.78
0.66
0.49
0.92
2.92
0.20
1.52
1.38
1.56
0.16
1.31

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

6.32
10.81
3.34
2.03
2.62
9.40
1.09
1.20
1.39
1.00
0.45
3.89

4.12
0.00
0.00
0.00
3.91
5.60
1.41
1.38
1.37
1.59
0.03
1.38

8.87
5.41
2.06
0.99
4.33
14.44
1.05
1.37
1.51
1.15
0.40
3.97

1.98
6.86
2.82
3.10
1.02
1.52
1.92
0.54
0.27
0.56
0.45
1.53

4.01
10.77
3.26
2.18
1.35
4.54
1.26
1.19
1.44
1.17
0.61
3.00

3.83
10.48
3.87
2.20
1.74
3.95
1.56
0.80
1.10
0.75
0.16
3.57

2.10
5.09
2.91
2.16
2.34
1.60
0.77
1.81
0.80
2.30
0.75
1.84

3.35
11.06
3.64
1.52
0.82
2.07
1.38
1.05
1.14
1.05
2.13
2.76

2.46
8.54
2.60
2.68
0.90
2.01
1.91
0.64
0.35
0.65
0.74
2.13

10.09
12.18
3.79
2.42
3.03
15.34
0.81
0.78
1.39
0.63
0.39
5.78

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

1.02
2.01
0.56
0.39
1.84
1.02
0.57
2.63
4.17
0.96
0.17
1.13

3.02
0.00
0.00
0.00
2.89
4.18
4.23
4.11
4.14
3.47
0.00
4.09

1.49
1.81
0.26
0.25
2.06
1.88
0.37
3.70
4.94
1.56
0.10
1.43

0.19
0.91
0.24
0.27
0.39
0.21
0.37
0.33
0.55
0.30
0.00
0.19

0.85
2.32
0.59
0.49
1.12
0.80
0.55
0.92
4.42
0.65
0.25
0.76

0.79
1.62
0.97
0.21
2.15
0.64
0.69
1.23
3.80
0.81
0.23
0.79

1.44
0.59
0.18
0.00
1.94
1.04
5.17
1.41
2.70
0.78
2.10
1.53

0.25
0.98
0.25
0.68
0.54
0.11
0.27
0.50
2.48
0.37
1.88
0.37

0.34
1.05
0.35
0.72
0.29
0.28
0.70
0.49
1.08
0.47
0.00
0.38

1.23
1.40
0.49
0.24
2.28
1.14
0.40
1.25
2.89
0.82
0.21
0.96

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)��������������

$4,086.6
217.4
1,058.4
224.5
580.2
1,875.3
1,423.1
1,282.0
664.3
617.8
723.2
7,514.9

$0.1
0.0
0.0
0.0
0.0
0.0
36.7
422.1
402.6
19.5
3.1
462.0

$491.0
6.9
35.4
38.8
102.9
253.4
263.1
254.0
160.6
93.5
272.5
1,280.6

$78.1
3.7
22.1
1.9
1.6
20.5
17.0
6.4
0.5
5.8
32.7
134.1

$1,798.5
144.4
721.1
133.7
186.9
578.2
607.8
198.6
14.4
184.2
162.5
2,767.4

$415.0
7.1
29.9
11.2
32.6
332.8
11.4
14.8
2.3
12.5
13.0
454.2

$14.8
0.3
0.6
0.1
7.3
6.4
2.0
51.9
16.9
35.0
0.3
69.1

$13.0
1.0
4.6
0.3
0.5
5.9
2.3
2.2
0.1
2.0
1.0
18.5

$59.0
3.2
15.4
1.6
2.5
32.2
7.2
6.8
0.2
6.6
5.4
78.4

$1,217.1
50.8
229.2
37.0
245.9
645.9
475.5
325.2
66.6
258.7
232.7
2,250.6

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

41,788.4
14,273.2
10,093.9
1,241.0
9,530.2
416.8
6,095.4

0.1
0.0
0.0
0.0
0.1
0.0
0.0

2,508.1
79.8
54.6
5.0
859.7
0.0
1,412.0

813.7
295.5
299.6
28.0
143.8
45.8
1.1

24,945.2
11,244.7
7,460.3
848.1
4,472.9
321.6
558.9

2,715.8
512.3
378.2
61.2
1,102.7
3.5
657.7

33.9
6.2
6.6
1.0
19.2
0.8
0.0

247.3
107.0
77.9
5.0
54.0
3.4
0.0

698.1
203.3
219.1
11.3
239.4
23.1
2.0

9,826.3
1,824.5
1,597.7
281.4
2,638.4
18.6
3,463.7

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

FDIC Quarterly

10

2012, Volume 6, No. 3

Quarterly Banking Profile
TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Size Distribution
June 30, 2012

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

1.43
1.15
0.67
0.43
0.91
2.21
0.35
1.48
1.36
1.61
0.20
1.11

1.49
1.45
1.27
0.82
0.93
1.98
1.31
1.99
1.48
1.99
0.44
1.37

1.06
1.26
0.86
0.76
0.72
1.40
0.88
1.56
1.89
1.53
0.37
1.02

0.94
1.17
0.64
0.43
0.66
1.44
0.55
1.44
1.58
1.38
0.22
0.88

1.62
1.08
0.59
0.35
0.94
2.46
0.28
1.48
1.35
1.63
0.18
1.16

1.07
1.46
0.66
0.41
0.64
1.48
0.46
1.34
1.23
1.67
0.15
0.98

1.61
1.10
0.75
0.62
1.11
2.31
0.23
1.93
1.79
2.01
0.07
1.25

1.29
1.24
0.72
0.37
1.05
1.91
0.42
1.52
1.12
1.65
0.28
1.00

2.07
0.74
0.66
0.47
0.88
3.53
0.28
1.58
1.61
1.53
0.15
1.38

1.19
0.97
0.73
0.64
0.69
1.83
0.55
0.99
0.71
1.14
0.29
1.00

0.90
1.65
0.48
0.32
0.38
1.41
0.37
1.08
1.06
1.10
0.57
0.82

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

6.32
10.81
3.34
2.03
2.62
9.40
1.09
1.20
1.39
1.00
0.45
3.89

2.76
8.27
3.37
2.97
1.16
2.33
2.17
0.82
0.63
0.82
0.59
2.31

3.21
9.77
3.01
2.56
1.36
2.49
1.93
0.91
1.30
0.88
0.69
2.81

4.29
11.11
3.44
2.52
1.41
4.80
1.71
0.74
1.32
0.52
0.67
3.45

7.55
11.23
3.43
1.73
2.82
11.32
0.93
1.24
1.39
1.05
0.41
4.13

3.80
12.09
3.12
1.32
1.25
4.41
1.36
1.28
1.36
1.03
0.22
2.58

9.49
13.46
3.90
3.06
3.07
14.23
0.95
1.24
1.37
1.16
0.32
5.84

6.82
10.54
3.64
2.29
3.06
10.83
1.19
1.07
1.50
0.93
0.24
4.07

7.30
9.92
3.39
1.86
3.23
11.41
0.97
1.27
1.54
0.89
0.76
4.15

3.61
6.45
2.84
3.34
1.60
4.05
1.15
0.56
0.74
0.47
0.79
2.70

3.22
10.63
2.74
1.86
0.92
3.62
1.01
1.19
1.26
1.13
0.75
2.17

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

1.02
2.01
0.56
0.39
1.84
1.02
0.57
2.63
4.17
0.96
0.17
1.13

0.38
1.32
0.40
0.43
0.65
0.34
0.59
0.45
1.27
0.44
0.00
0.39

0.57
1.76
0.47
0.56
0.55
0.47
0.86
0.89
4.60
0.61
0.27
0.61

0.72
2.29
0.57
0.46
0.88
0.57
0.69
1.60
3.69
0.78
0.31
0.76

1.20
2.02
0.60
0.33
2.02
1.19
0.53
2.75
4.18
1.00
0.15
1.27

0.58
1.88
0.50
0.39
0.74
0.49
0.88
3.67
4.44
1.42
0.14
1.35

1.46
2.81
0.83
0.57
2.59
1.25
0.50
1.58
2.93
0.81
0.24
1.19

1.03
2.06
0.73
0.41
1.56
1.01
0.49
1.53
3.80
0.77
0.12
0.87

1.30
1.78
0.34
0.40
2.46
1.56
0.48
3.52
4.99
1.45
0.18
1.39

0.55
0.98
0.34
0.52
1.24
0.54
0.43
1.12
2.41
0.46
0.27
0.56

0.62
1.96
0.43
0.14
0.67
0.72
0.73
1.87
3.39
0.52
0.17
0.91

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)�����

$4,086.6
217.4
1,058.4
224.5
580.2
1,875.3
1,423.1
1,282.0
664.3
617.8
723.2
7,514.9

$53.7
3.1
15.6
1.6
1.6
23.7
9.7
5.0
0.1
5.0
9.1
77.4

$619.5
52.0
248.2
30.9
31.3
221.2
103.4
35.9
2.5
33.4
40.4
799.1

$642.5
51.9
261.3
48.8
46.6
219.8
144.2
66.4
18.4
48.0
40.5
893.6

$2,770.9
110.3
533.3
143.3
500.7
1,410.6
1,165.9
1,174.8
643.3
531.4
633.2
5,744.7

$828.5
37.6
237.9
71.2
93.8
380.9
213.5
366.2
270.9
95.3
115.8
1,524.0

$935.0
57.7
216.3
28.4
157.1
466.8
322.9
234.1
88.9
145.2
138.0
1,630.0

$794.9
35.9
190.2
63.6
143.6
345.4
298.5
185.0
45.3
139.7
202.2
1,480.6

$813.0
32.7
161.1
22.2
128.8
390.0
330.4
280.2
162.9
117.3
207.7
1,631.3

$334.9
36.5
122.3
9.9
20.7
133.1
100.5
47.2
16.0
31.2
26.9
509.4

$380.4
16.9
130.5
29.2
36.2
159.2
157.3
169.4
80.4
89.0
32.6
739.6

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

41,788.4
14,273.2
10,093.9
1,241.0
9,530.2
416.8
6,095.4

1,181.8
400.1
378.3
61.9
312.4
27.5
1.6

12,012.0
5,442.8
3,761.4
360.1
2,244.6
199.6
3.5

9,826.4
4,676.3
2,844.5
303.9
1,746.2
141.1
114.6

18,768.2
3,754.0
3,109.8
515.2
5,227.1
48.6
5,975.7

4,800.5
1,218.2
1,334.5
185.7
1,599.2
34.7
390.1

10,724.6
4,219.9
2,175.3
281.9
2,554.9
87.9
1,404.7

9,080.0
1,979.4
1,943.6
299.1
2,092.2
87.6
2,678.1

8,188.0
2,706.1
1,916.4
192.4
1,645.2
69.9
1,559.0

5,450.8
2,624.5
1,573.8
162.6
944.0
96.0
49.9

3,544.6
1,525.2
1,150.3
119.3
694.7
40.8
13.6

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

FDIC Quarterly

11

2012, Volume 6, No. 3

Table VI-A. Derivatives, All FDIC-Insured Call Report Filers
Asset Size Distribution
2nd
Quarter
2012

1st
Quarter
2012

4th
Quarter
2011

3rd
Quarter
2011

2nd
Quarter
2011

(dollar figures in millions;
notional amounts unless otherwise indicated)
ALL DERIVATIVE HOLDERS
Number of institutions reporting derivatives�����������������
1,323
1,288
1,190
1,188
1,165
Total assets of institutions reporting derivatives���������� $12,210,213 $12,088,779 $11,467,639 $11,351,495 $11,166,018
Total deposits of institutions reporting derivatives�������
8,883,116
8,805,683
8,298,390
8,106,781
7,895,134
Total derivatives������������������������������������������������������������� 224,998,167 230,364,892 231,879,988 250,460,992 251,133,282

Less
$100
$1 Billion
%Change than $100 Million to
to $10
Greater than
11Q2-12Q2 Million
$1 Billion
Billion
$10 Billion
13.6
9.4
12.5
-10.4

91
$6,630
5,600
326

799
$323,067
265,707
27,624

341
$998,807
782,998
93,845

92
$10,881,708
7,828,811
224,876,374

Derivative Contracts by Underlying Risk Exposure
Interest rate�������������������������������������������������������������������� 178,805,823 183,730,134 187,530,951 202,128,411 204,508,865
Foreign exchange*�������������������������������������������������������� 29,089,927 29,211,390 26,500,008 29,283,191 28,389,032
Equity�����������������������������������������������������������������������������
1,984,983
1,898,562
1,588,737
1,786,008
1,654,652
Commodity & other (excluding credit derivatives)��������
1,493,094
1,473,732
1,501,077
1,602,067
1,351,825
Credit������������������������������������������������������������������������������ 13,624,340
14,051,075
14,759,214
15,661,315 15,228,907
Total�������������������������������������������������������������������������������� 224,998,167 230,364,892 231,879,988 250,460,992 251,133,282

-12.6
2.5
20.0
10.5
-10.5
-10.4

322
0
3
1
0
326

26,894
432
69
17
212
27,624

86,664
6,065
673
329
114
93,845

178,691,944
29,083,430
1,984,239
1,492,747
13,624,014
224,876,374

Derivative Contracts by Transaction Type
Swaps���������������������������������������������������������������������������� 134,469,546 138,658,393 146,265,646 156,143,298 156,064,620
Futures & forwards�������������������������������������������������������� 40,602,824 40,479,930 37,252,578 39,794,853 40,973,198
Purchased options��������������������������������������������������������� 16,897,203
17,548,670 16,524,639
18,511,697 18,861,506
Written options��������������������������������������������������������������� 16,710,512
17,103,027 16,014,682
17,862,163 18,099,390
Total�������������������������������������������������������������������������������� 208,680,085 213,790,021 216,057,545 232,312,010 233,998,715

-13.8
-0.9
-10.4
-7.7
-10.8

29
113
32
151
326

6,505
10,091
643
9,969
27,207

46,159 134,416,853
25,414
40,567,206
4,920
16,891,608
16,680
16,683,712
93,172 208,559,379

Fair Value of Derivative Contracts
Interest rate contracts���������������������������������������������������
Foreign exchange contracts������������������������������������������
Equity contracts�������������������������������������������������������������
Commodity & other (excluding credit derivatives)��������
Credit derivatives as guarantor�������������������������������������
Credit derivatives as beneficiary�����������������������������������

92,781
-3,883
3,406
-1,719
-179,121
185,112

93,550
-3,875
-380
-2,004
-127,599
131,291

89,141
25,705
1,657
-1,559
-289,532
303,241

92,984
33,038
6,441
773
-370,779
387,580

88,672
15,548
299
148
-67,253
75,397

4.6
N/M
1,039.1
N/M
N/M
145.5

1
0
0
0
0
0

30
0
1
0
-1
-1

154
8
12
2
2
-3

92,596
-3,892
3,393
-1,722
-179,122
185,116

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

82,505,329
30,337,222
21,795,561
18,604,099
2,926,354
1,422,938
597,782
262,864
81,390
442,492
205,411
24,628

85,881,609
31,691,226
22,691,140
18,849,154
3,017,933
1,349,611
539,407
241,998
88,815
481,515
203,940
20,361

87,811,894
32,750,418
24,167,662
17,593,968
3,060,132
1,475,128
426,621
210,410
93,653
375,875
241,723
46,181

95,374,598
34,134,320
24,968,981
19,276,990
2,961,939
1,446,010
375,359
241,995
97,743
434,161
266,044
29,127

94,640,370
35,300,646
25,211,181
17,878,072
3,151,169
1,501,429
358,257
226,000
93,112
438,496
237,875
30,222

-12.8
-14.1
-13.5
4.1
-7.1
-5.2
66.9
16.3
-12.6
0.9
-13.6
-18.5

92
35
38
0
0
0
0
0
0
0
0
0

10,124
2,967
3,120
228
0
0
7
16
1
0
5
0

23,285
24,379
16,631
4,208
190
376
87
147
15
91
97
0

82,471,828
30,309,842
21,775,772
18,599,664
2,926,164
1,422,562
597,687
262,702
81,374
442,400
205,309
24,628

44.5
79.3

52.5
82.8

38.3
87.3

0.1
0.1

0.7
0.2

1.4
0.4

44.3
75.5

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

38.9
66.1

36.3
71.9

105.1

108.2

123.8

135.3

125.7

0.2

0.9

1.7

119.8

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

130.8

76.3

1832.5

1763.8

1672.9

-92.2

0.0

0.2

0.7

129.9

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

233
9,805,274
7,119,133

209
9,691,098
7,068,635

199
9,516,217
6,917,213

193
9,461,453
6,771,052

197
9,307,611
6,604,240

18.3
5.3
7.8

11
752
634

92
40,484
33,172

70
259,045
202,195

60
9,504,993
6,883,132

Derivative Contracts by Underlying Risk Exposure
Interest rate�������������������������������������������������������������������� 174,788,650 179,735,905 183,607,223 198,005,763 200,467,447
Foreign exchange���������������������������������������������������������� 25,617,541 25,879,318
24,779,179 26,435,948 26,123,843
Equity�����������������������������������������������������������������������������
1,971,135
1,884,958
1,581,757
1,779,267
1,648,685
Commodity & other��������������������������������������������������������
1,476,700
1,460,464
1,476,234
1,581,316
1,331,805
Total�������������������������������������������������������������������������������� 203,854,025 208,960,646 211,444,393 227,802,295 229,571,781

-12.8
-1.9
19.6
10.9
-11.2

42
0
0
1
43

2,799
0
0
7
2,806

16,179
2,720
41
60
19,000

174,769,630
25,614,821
1,971,093
1,476,631
203,832,176

-24.2
328.8
24.4
N/M
-70.0

0
0
0
0
0

-1
0
0
0
-1

18
-3
2
-1
16

2,717
2,134
1,008
-3,884
1,975

0.0
0.0

-0.2
-1.2

0.5
2.9

1.8
10.8

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

2,734
2,131
1,010
-3,885
1,990

5,630
1,504
257
-1,032
6,358

252
2,229
-111
160
2,529

2,083
2,632
1,443
2,323
8,480

3,606
497
812
1,712
6,627

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

1.7
10.5

5.2
30.3

2.2
17.4

7.2
40.6

5.6
41.2

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

1,183
11,788,104
8,545,471

1,169
11,775,167
8,563,169

1,074
11,167,075
8,065,789

1,080
11,130,959
7,938,138

1,056
10,827,824
7,727,004

12.0
8.9
10.6

80
5,878
4,966

718
287,815
236,476

301
885,817
693,327

84
10,608,595
7,610,702

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

4,017,174
778,644
13,849
16,394
4,826,060

3,994,228
808,276
13,603
13,268
4,829,375

3,923,729
657,600
6,980
24,842
4,613,151

4,122,648
359,576
6,741
20,751
4,509,715

4,041,418
359,529
5,967
20,020
4,426,934

-0.6
116.6
132.1
-18.1
9.0

280
0
3
0
282

24,095
228
69
10
24,402

70,486
2,787
631
268
74,172

3,922,314
775,629
13,146
16,115
4,727,204

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

2012, Volume 6, No. 3

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

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

2nd
Quarter
2012

1st
Quarter
2012

4th
Quarter
2011

3rd
Quarter
2011

2nd
Quarter
2011

% Change Less than
$100
$1 Billion Greater
11Q2$100
Million to
to $10
than $10
12Q2
Million $1 Billion Billion
Billion

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

178

177

140

138

135

31.9

23

91

30

34

$750,719
52
16,988
4,520
4,826
66
209,102
986,273

$741,880
54
18,691
2,822
4,748
67
204,771
973,032

$730,853
0
11,818
946
4,862
63
196,124
944,666

$749,803
0
10,561
1,034
4,979
70
198,826
965,273

$758,015
1,028
10,902
228
4,667
72
195,725
970,638

-1.0
-94.9
55.8
1,882.5
3.4
-8.3
6.8
1.6

$188
0
0
0
0
3
2
192

$3,198
1
585
0
0
18
2,886
6,688

$9,449
0
0
13
0
31
5,233
14,726

$737,885
51
16,403
4,507
4,826
15
200,981
964,667

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���

3,692
0
611
1
209
0
2,302
6,816
127

3,797
0
617
1
205
0
3,015
7,636
121

3,895
0
550
2
208
0
1,309
5,964
121

4,116
0
561
3
216
0
697
5,592
129

4,321
0
531
56
202
0
476
5,584
124

-14.6
0.0
15.1
-98.2
3.5
0.0
383.6
22.1
2.4

1
0
0
0
0
0
0
1
0

83
0
197
0
0
0
4
284
6

50
0
0
1
0
0
0
51
0

3,558
0
414
0
209
0
2,298
6,479
121

3.7
13.3
0.8
0.4
4.6
3.9
1.3
3.2

3.4
11.7
0.9
0.3
5.1
0.5
0.9
2.8

4.0
0.0
1.4
0.4
5.6
0.5
0.6
3.3

4.2
0.0
1.8
0.1
4.4
0.0
1.4
3.6

4.0
1.5
1.6
1.9
4.5
0.0
0.9
3.3

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.7
0.0
1.6
0.0
0.0
0.0
0.4
0.6

6.5
0.0
0.0
0.7
0.0
8.6
0.3
4.3

3.7
13.6
0.8
0.4
4.6
0.0
1.4
3.2

5.5
26.1
0.3
0.0
5.0
3.1
6.9
5.6

5.6
25.8
0.4
0.0
5.5
3.6
7.1
5.8

6.4
0.0
0.6
0.0
6.2
0.0
7.5
6.6

6.4
0.0
0.7
0.0
4.6
0.0
6.6
6.4

6.9
3.2
0.7
0.2
4.7
0.0
6.2
6.7

0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.1

0.6
0.0
1.6
0.0
0.0
0.0
0.0
0.4

2.9
0.0
0.0
0.1
0.0
6.7
1.2
2.3

5.5
26.7
0.2
0.0
5.0
0.0
7.1
5.7

0.7
1.2
1.5
0.0
0.5
0.0
0.2
0.6

0.3
0.6
4.9
0.0
0.3
0.0
0.1
0.4

1.2
0.0
5.3
0.0
1.2
0.0
0.4
1.1

0.9
0.0
4.7
0.0
0.9
0.0
0.2
0.8

0.6
1.6
3.3
1.1
0.6
0.0
0.1
0.5

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
3.1
0.0
0.0
0.0
0.0
0.3

0.0
0.0
0.0
-0.4
0.0
0.0
0.0
0.0

0.7
1.2
1.5
0.0
0.5
0.0
0.2
0.6

0
14,964
12

0
13,100
9

0
9,052
3

0
9,252
2

0
9,115
2

0.0
64.2
500.0

0
0
3

0
72
10

0
0
0

0
14,892
0

0
0
0

0
0
0

0
0
0

0
0
0

447
0
0

-100.0
0.0
0.0

0
0
0

0
0
0

0
0
0

0
0
0

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

Assets Sold with Recourse and Not Securitized

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

994

980

878

861

864

15.0

169

631

148

46

57,553
883
56
62,899
121,391

55,131
895
58
63,221
119,305

52,708
913
56
53,528
107,205

52,348
1,296
70
55,111
108,825

55,181
1,360
147
54,922
111,609

4.3
-35.1
-61.9
14.5
8.8

1,279
0
0
1
1,280

13,967
2
41
31
14,040

10,511
22
2
424
10,958

31,797
859
13
62,444
95,114

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

16,945
168
38
14,277
31,428

14,469
170
41
14,320
29,000

13,367
176
39
13,962
27,544

12,706
188
53
13,789
26,735

13,295
192
127
13,513
27,127

27.5
-12.5
-70.1
5.7
15.9

139
0
0
0
139

3,039
2
31
28
3,100

6,503
4
2
37
6,545

7,264
162
5
14,212
21,644

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

176
62,952

176
70,542

164
62,015

158
44,284

159
38,052

10.7
65.4

19
13

100
3,119

37
538

20
59,282

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

1,275

621

567

593

632

101.7

0

0

0

1,275

5,611,091 5,793,238

5,227,071

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

5,471,052

5,637,377

5,755,719

-2.5

4,899

115,566

263,555

12,801

11,429

11,672

11,484

10,109

26.6

5

1

39

12,756

73,694

76,121

81,848

71,757

70,504

4.5

0

0

908

72,786

2,408
243
8.1

4,464
276
8.7

3,313
237
7.8

-1,649
179
6.3

2,446
138
5.9

-1.6
76.1

40
0
1.0

133
17
5.0

121
11
4.8

2,114
215
9.2

* 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

2012, Volume 6, No. 3

Quarterly Banking Profile
INSURANCE FUND INDICATORS
The DIF Reserve Ratio Rises 10 Basis Points to 0.32 Percent
■	 Fees Earned from Debt Guarantees Under the Temporary Liquidity
Guarantee Program Add $4 Billion to the DIF
■	 $1.4 Trillion Temporarily Insured in Noninterest-Bearing Transaction Accounts
■	 15 Institutions Fail During the Second Quarter
■	

Total assets of the nation’s 7,246 FDIC-insured
commercial banks and savings institutions increased by
0.8 percent ($105.3 billion) in the second quarter of
2012. Total deposits increased by 0.6 percent ($61.6
billion), domestic office deposits increased by 1.0
percent ($88.1 billion), and foreign office deposits
decreased by 1.8 percent ($26.5 billion). Domestic
noninterest-bearing deposits increased by 2.9 percent
($65.6 billion), while domestic interest-bearing deposits
rose 0.3 percent ($22.5 billion). For the 12 months
ending June 30, 2012, total domestic deposits grew by
8.4 percent ($688.1 billion), with domestic noninterestbearing deposits rising by 20.2 percent ($387.2 billion)
and domestic interest-bearing deposits increasing by 4.8
percent ($300.9 billion).

the past 12 months.2 The large 12-month increase was
primarily attributable to the growth in noninterestbearing transaction account balances that are fully
insured through December 31, 2012. For institutions in
existence at the start and the end of the second quarter,
insured deposits increased at 3,137 institutions (43
percent), decreased at 4,076 institutions (56 percent),
and remained unchanged at 32 institutions.
During the second quarter the Deposit Insurance Fund
(DIF) increased by $7.4 billion to $22.7 billion (unaudited). Fees from the debt guarantees under the Temporary Liquidity Guarantee Program added $4.0 billion to
the DIF balance during the quarter, and assessment
income added $2.9 billion. Interest earnings, combined
with a negative provision for insurance losses, and other
net revenue increased the fund by another $947
million. Operating expenses combined with unrealized
losses on available-for-sale securities reduced the fund
by $515 million.

At the end of the second quarter, domestic deposits
funded 63.5 percent of industry assets. Insured insti­
tutions held $1.6 trillion in domestic noninterest-­
bearing transaction accounts larger than $250,000 at
June 30. Of this total, $1.4 trillion exceeded the basic
coverage limit of $250,000 per account, but is temporarily fully insured through December 31, 2012.1
Balances exceeding the $250,000 limit in noninterestbearing transaction accounts increased by 5.0 percent
($65.7 billion) during the second quarter and by 32.1
percent ($335.8 billion) over the past four quarters.
Table 1 on page 16 provides the distribution of large
noninterest-bearing transaction accounts by institution asset size.

The DIF reserve ratio rose to 0.32 percent at June 30,
2012, from 0.22 percent at March 31, 2012, and 0.06
percent at June 30, 2011. Fifteen FDIC-insured institutions with combined assets of $2.7 billion failed during
the second quarter of 2012. For these failures, losses to
the DIF are estimated at $520 million.
Effective April 1, 2011, the deposit insurance assessment base changed to average consolidated total assets
minus average tangible equity.3 Revisions to insurance
assessment rates and risk-based pricing rules for large
banks (banks with assets greater than $10 billion) also
became effective on that date.4 Table 2 on page 16
shows the d­ istribution of the assessment base as of
June 30, 2012, by institution asset size.

Total estimated insured deposits increased by 0.7
percent in the second quarter and by 8.4 percent over

The Dodd-Frank Wall Street Reform and Consumer Protection Act
(Dodd-Frank), enacted on July 21, 2010, provides temporary unlimited
deposit insurance coverage for noninterest-bearing transaction
accounts from December 31, 2010, through December 31, 2012,
regardless of the balance in the account and the ownership capacity of
the funds. The unlimited coverage is available to all depositors, including consumers, businesses and government entities. The coverage is
separate from, and in addition to, the insurance coverage provided for
a depositor’s other accounts held at an FDIC-insured bank.
1

FDIC Quarterly

Figures for estimated insured deposits in this discussion include
insured branches of foreign banks, in addition to insured commercial
banks and savings institutions.
3
There is an additional adjustment to the assessment base for
­banker’s banks and custodial banks, as permitted under Dodd-Frank.
4
The Fourth Quarter 2010 Quarterly Banking Profile includes a detailed
explanation of these changes.
2

15

2012, Volume 6, No. 3

Table 1

Insured Commercial Banks and Savings Institutions as of June 30, 2012
Distribution of Noninterest-Bearing Domestic Deposits by Asset Size
Dodd-Frank
Domestic Noninterest-Bearing Transaction Accounts
Larger than $250,000

Asset Size
Less than $1 Billion
$1 - $10 Billion
$10 - $50 Billion
$50 - $100 Billion
Over $100 Billion
Total

Number of
Institutions
6,586
553
71
17
19
7,246

Total Assets
($ Bil.)
$1,410.2
1,425.9
1,399.1
1,295.8
8,500.1
14,031.0

Total
($ Bil.)
$73.1
105.8
128.6
124.4
1,144.5
1,576.3

Amount Above
the $250,000
Coverage Limit
($ Bil.)
$47.5
77.8
106.5
108.4
1,041.9
1,382.1

March 31, 2012
December 31, 2011
September 30, 2011
June 30, 2011
March 31, 2011
December 31, 2010

7,308
7,357
7,437
7,513
7,574
7,658

13,925.7
13,892.2
13,811.9
13,602.6
13,414.3
13,318.9

1,504.6
1,585.3
1,392.9
1,213.7
1,052.9
1,015.7

1,316.4
1,402.2
1,216.0
1,046.3
893.4
858.9

Other
NoninterestAverage
Average
Bearing
Account
Number of
Deposits*
Size
Accounts per
($ Bil.)
($000)
Institution
$714
16
$122.7
947
202
92.0
1,460
1,240
69.4
1,939
3,775
48.4
2,788
21,602
390.6
2,029
107
723.3
1,999
2,164
1,969
1,812
1,650
1,619

103
100
95
89
84
82

729.3
680.2
700.5
698.7
694.2
673.8

* Includes noninterest-bearing transaction accounts smaller than $250,000 and noninterest-bearing deposits not classified as transaction accounts.

Table 2

Distribution of the Assessment Base for FDIC-Insured Institutions*
by Asset Size
Data as of June 30, 2012
Asset Size
Less than $1 Billion
$1 - $10 Billion
$10 - $50 Billion
$50 - $100 Billion
Over $100 Billion
Total

Number of
Institutions
6,586
553
71
17
19
7,246

Percent of
Assessment Base**
Total Institutions
($ Bil.)
90.9%
$1,259
7.6%
1,274
1.0%
1,217
0.2%
1,106
0.3%
7,271
100.0%
12,127

Percent of
Base
10.4%
10.5%
10.0%
9.1%
60.0%
100.0%

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

Dodd-Frank requires that, for at least five years, the
FDIC must make available to the public the reserve
ratio and the Designated Reserve Ratio (DRR) using
both estimated insured deposits and the new assessment
base. As of June 30, 2012, the DIF reserve ratio would
have been 0.19 percent using the new assessment base
(compared to 0.32 percent based on estimated insured
deposits). The 2 percent DRR based on estimated
insured deposits would have been 1.2 percent using the
new assessment base.

FDIC Quarterly

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

16

2012, Volume 6, No. 3

Quarterly Banking Profile
Table I-B. Insurance Fund Balances and Selected Indicators
Deposit Insurance Fund*
2nd
1st
4th
3rd
Quarter
Quarter
Quarter
Quarter
2011
2011
2010
2010
-$1,023
-$7,352
-$8,009
-$15,247

2nd
Quarter
2012
$15,292

1st
Quarter
2012
$11,827

4th
Quarter
2011
$7,813

3rd
Quarter
2011
$3,916

2,933

3,694

3,209

3,642

3,163

3,484

3,498

81

20

33

30

37

28

0
407

0
460

0
334

0
433

0
463

0
395

-807

12

1,533

-763

-2,095

4,095

63

2,599

83

-108
7,401

160
3,465

40
4,014

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

22,693

15,292

479.49

NM

Reserve Ratio (%)�����������������

0.32

0.22

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

Estimated Insured
Deposits**������������������������������ 7,085,977
Percent change from
four quarters earlier���������
8.45
Domestic Deposits���������������
Percent change from
four quarters earlier���������

2nd
Quarter
2010
-$20,717

1st
Quarter
2010
-$20,862

4th
Quarter
2009
-$8,243

3rd
Quarter
2009
$10,368

2nd
Quarter
2009
$13,007

3,592

3,242

3,278

3,042

2,965

9,095

39

40

64

62

76

176

240

0
452

0
414

0
382

0
345

0
379

732
328

521
298

-3,089

2,446

-3,763

-2,552

3,021

17,766

21,694

11,615

80

66

48

94

55

22

2,721

308

375

-188
3,897

27
4,939

57
6,329

-30
657

163
7,238

-61
5,470

149
145

-313
-12,619

-770
-18,611

-957
-2,639

11,827

7,813

3,916

-1,023

-7,352

-8,009

-15,247

-20,717

-20,862

-8,243

10,368

NM

NM

NM

NM

NM

NM

NM

NM

NM

NM

-77.07

0.17

0.12

0.06

-0.02

-0.12

-0.15

-0.28

-0.38

-0.39

-0.16

0.22

7,033,288 6,980,704

6,765,799

6,534,110

6,386,189

6,307,864

5,421,425

5,437,417

5,472,402

5,407,773

5,315,927

4,817,789

24.80

20.17

16.70

16.64

1.98

12.86

13.26

13.83

16.96

7.83

8,782,125 8,526,664 8,244,868 8,006,891

10.13

8,937,716 8,848,655

Number of institutions
reporting�������������������������

10.67

7,887,734

7,753,409

7,681,284

7,702,451

7,705,353

7,561,334

7,561,996

11.63

12.18

11.34

9.97

7.34

3.95

2.37

2.54

1.58

2.06

2.66

4.58

7.47

7,255

7,317

7,366

7,446

7,522

7,583

7,667

7,770

7,839

7,943

8,021

8,108

8,204

Deposit Insurance Fund Balance
and Insured Deposits
($ Millions)

DIF Reserve Ratios
Percent of Insured Deposits
0.32
0.22

0.17

0.22

0.12
0.06
-0.16 -0.39 -0.38 -0.28 -0.15 -0.12 -0.02

6/09

12/09

6/10

12/10

6/11

12/11

6/12

DIF
Balance

DIF-Insured
Deposits

6/09

$10,368

$4,817,789

9/09

-8,243

5,315,927

12/09

-20,862

5,407,773

3/10

-20,717

5,472,402

6/10

-15,247

5,437,417

9/10

-8,009

5,421,425

12/10

-7,352

6,307,864

3/11

-1,023

6,386,189

6/11

3,916

6,534,110

9/11

7,813

6,765,799

12/11

11,827

6,980,704

3/12

15,292

7,033,288

6/12

22,693

7,085,977

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

2012***
732
$282,432

2011***
865
$372,090

2011

2010

2009

2008

813
$319,432

884
$390,017

702
$402,782

252
$159,405

2007
76
$22,189

Failed Institutions
140
25
Number of institutions��������������������������������������������
31
48
92
157
3
$169,709
$371,945
Total assets�������������������������������������������������������������
$7,482
$19,232
$34,923
$92,085
$2,615
Assisted Institutions****
8
5
Number of institutions��������������������������������������������
0
0
0
0
0
$1,917,482
$1,306,042
$0
$0
$0
$0
Total assets�������������������������������������������������������������
$0
* Quarterly financial statement results are unaudited.
NM - Not meaningful
** Beginning in the third quarter of 2009, estimates of insured deposits are based on a $250,000 general coverage limit. The Dodd-Frank Wall Street Reform and Consumer Protection Act
(Dodd-Frank) temporarily provides unlimited coverage for noninterest bearing transaction accounts for two years beginning December 31, 2010. Beginning in the fourth quarter of 2010,
estimates of insured deposits include the entire balance of noninterest bearing transaction accounts.
*** Through June 30. 							
**** 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.

FDIC Quarterly

17

2012, Volume 6, No. 3

Table III-B. Estimated FDIC-Insured Deposits by Type of Institution
(dollar figures in millions)
June 30, 2012
Commercial Banks and Savings Institutions

Number of
Institutions

Total
Assets

Domestic
Deposits*

Est. Insured
Deposits

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

6,222
4,101
1,285
836

$12,889,818
2,051,237
8,932,795
1,905,785

$8,038,177
1,575,560
5,242,326
1,220,292

$6,281,771
1,273,207
4,071,517
937,048

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

1,024
574
450

1,141,190
803,219
337,971

875,544
620,056
255,488

781,974
556,157
225,817

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

7,246

14,031,008

8,913,721

7,063,746

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

9

86,725

23,995

22,231

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

7,255

14,117,733

8,937,716

7,085,977

* Excludes $1.4 trillion in foreign office deposits, which are uninsured.

Table IV-B. Distribution of Institutions and Assessment Base by Assessment Rate Range
Quarter Ending March 31, 2012 (dollar figures in billions)
Number of
Annual Rate in Basis Points
Institutions
2.50-5.00
1,229
5.01-7.50
2,246
7.51-10.00
1,854
10.01-15.00
1,141
15.01-20.00
71
20.01-25.00
596
25.01-30.00
17
30.01-35.00
148
greater than 35.00
15

Percent of Total
Institutions
16.80
30.70
25.34
15.59
0.97
8.15
0.23
2.02
0.21

Amount of
Assessment Base*
$897
1,899
3,677
4,931
255
233
105
64
29

Percent of Total
Assessment Base
7.42
15.71
30.41
40.78
2.11
1.93
0.87
0.53
0.24

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

FDIC Quarterly

18

2012, Volume 6, No. 3

Quarterly Banking Profile

Notes to Users

accounting requirements of the FFIEC Call Reports. (TFR filers began filing Call Reports effective with the quarter ending March 31, 2012.)
All asset and liability figures used in calculating performance
ratios represent average amounts for the period (beginning-ofperiod amount plus end-of-period amount plus any interim
periods, divided by the total number of periods). For “poolingof-interest” mergers, the assets of the acquired institution(s)
are included in average assets since the year-to-date income
includes the results of all merged institutions. No adjustments
are made for “purchase accounting” mergers. Growth rates
represent the percentage change over a 12-month period in
totals for institutions in the base period to totals for institutions in the current period.
All data are collected and presented based on the location of
each reporting institution’s main office. Reported data may
include assets and liabilities located outside of the reporting
institution’s home state. In addition, institutions may relocate
across state lines or change their charters, resulting in an
inter-regional or inter-industry migration, e.g., institutions
can move their home offices between regions, and savings
institutions can convert to commercial banks or commercial
banks may convert to savings institutions.

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

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

ACCOUNTING CHANGES

Goodwill Impairment Testing – In September 2011, the FASB
issued Accounting Standards Update (ASU) No. 2011-08,
“Testing Goodwill for Impairment,” to address concerns about
the cost and complexity of the existing goodwill impairment
test in ASC Topic 350, Intangibles-Goodwill and Other
­(formerly FASB Statement No. 142, “Goodwill and Other
Intangible Assets”). The ASU’s amendments to ASC
Topic 350 are effective for annual and interim goodwill
impairment tests performed for fiscal years beginning after
December 15, 2011 (i.e., for annual or interim tests performed
on or after January 1, 2012, for institutions with a calendar
year fiscal year). Early adoption of the ASU is permitted.
Under ASU 2011-08, an institution has the option of first
assessing qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test described in ASC Topic 350. If, after considering
all relevant events and circumstances, an institution determines it is unlikely (that is, a likelihood of 50 percent or less)
that the fair value of a reporting unit is less than its carrying
amount (including goodwill), then the institution does not
need to perform the two-step goodwill impairment test. If the
institution instead concludes that the opposite is true (that is,
it is likely that the fair value of a reporting unit is less than its
carrying amount), then it is required to perform the first step
and, if necessary, the second step of the two-step goodwill
impairment test. Under ASU 2011-08, an institution may
choose to bypass the qualitative assessment for any reporting
unit in any period and proceed directly to performing the first
step of the two-step goodwill impairment test.
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

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

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

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

19

2012, Volume 6, No. 3

December 31, 2007, and beginning before January 1, 2010.
For calendar-year banks, this extended carryback period
applies to either the 2008 or 2009 tax year. The amount of
the net operating loss that can be carried back to the fifth
carryback year is limited to 50 percent of the available taxable income for that fifth year, but this limit does not apply to
other carryback years.
Under generally accepted accounting principles, banks may
not record the effects of this tax change in their balance
sheets and income statements for financial and regulatory
reporting purposes until the period in which the law was
enacted, i.e., the fourth quarter of 2009. Therefore, banks
should recognize the effects of this fourth quarter 2009 tax
law change on their current and deferred tax assets and liabilities, including valuation allowances for deferred tax assets, in
their Call Reports for December 31, 2009. Banks should not
amend their Call Reports for prior quarters for the effects of
the extended net operating loss carryback period.
The American Recovery and Reinvestment Act of 2009,
which was enacted on February 17, 2009, permits qualifying
small businesses, including FDIC-insured institutions, to elect
a net operating loss carryback period of three, four, or five
years instead of the usual carryback period of two years for
any tax year ending in 2008 or, at the small business’s election, any tax year beginning in 2008. Under generally accepted accounting principles, institutions may not record the
effect of this tax change in their balance sheets and income
statements for financial and regulatory reporting purposes
until the period in which the law was enacted, i.e., the first
quarter of 2009.
Troubled Debt Restructurings and Current Market Interest Rates –
Many institutions are restructuring or modifying the terms of
loans to provide payment relief for those borrowers who have
suffered deterioration in their financial condition. Such loan
restructurings may include, but are not limited to, reductions
in principal or accrued interest, reductions in interest rates,
and extensions of the maturity date. Modifications may be
executed at the original contractual interest rate on the loan,
a current market interest rate, or a below-market interest rate.
Many of these loan modifications meet the definition of a
troubled debt restructuring (TDR).
The TDR accounting and reporting standards are set forth in
ASC Subtopic 310-40, Receivables – Troubled Debt
Restructurings by Creditors (formerly FASB Statement No.
15, “Accounting by Debtors and Creditors for Troubled Debt
Restructurings,” as amended). This guidance specifies that a
restructuring of a debt constitutes a TDR if, at the date of
restructuring, the creditor for economic or legal reasons related to a debtor’s financial difficulties grants a concession to
the debtor that it would not otherwise consider.
In the Call Report, until a loan that is a TDR is paid in full or
otherwise settled, sold, or charged off, it must be reported in
the appropriate loan category, as well as identified as a performing TDR loan, if it is in compliance with its modified
terms. If a TDR is not in compliance with its modified terms,
it is reported as a past-due and nonaccrual loan in the appropriate loan category, as well as distinguished from other past
due and nonaccrual loans. To be considered in compliance
with its modified terms, a loan that is a TDR must not be in
nonaccrual status and must be current or less than 30 days past
due on its contractual principal and interest payments under

FDIC Quarterly

the modified repayment terms. A loan restructured in a TDR
is an impaired loan. Thus, all TDRs must be measured for
impairment in accordance with ASC Subtopic 310-10,
Receivables – Overall (formerly FASB Statement No. 114,
“Accounting by Creditors for Impairment of a Loan,” as
amended), and the Call Report Glossary entry for “Loan
Impairment.” Consistent with ASC Subtopic 310-10, TDRs
may be aggregated and measured for impairment with other
impaired loans that share common risk characteristics by using
historical statistics, such as average recovery period and average amount recovered, along with a composite effective interest rate. However, the outcome of such an aggregation
approach must be consistent with the impairment measurement methods prescribed in ASC Subtopic 310-10 and Call
Report instructions for loans that are “individually” considered
impaired instead of the measurement method prescribed in
ASC Subtopic 450-20, Contingencies – Loss Contingencies
(formerly FASB Statement No. 5, “Accounting for Contin­
gencies”) for loans not individually considered impaired that
are collectively evaluated for impairment. When a loan not
previously considered individually impaired is restructured and
determined to be a TDR, absent a partial charge-off, it generally is not appropriate for the impairment estimate on the loan
to decline as a result of the change from the impairment measurement method prescribed in ASC Subtopic 450-20 to the
methods prescribed in ASC Subtopic 310-10.
Troubled Debt Restructurings and Accounting Standards Update
No. 2011-02 – In April 2011, the FASB issued Accounting
Standards Update (ASU) No. 2011-02, “A Creditor’s
Determination of Whether a Restructuring Is a Troubled
Debt Restructuring,” to provide additional guidance to help
creditors determine whether a concession has been granted to
a borrower and whether a borrower is experiencing financial
difficulties. The guidance is also intended to reduce diversity
in practice in identifying and reporting TDRs. This ASU is
effective for public companies for interim and annual periods
beginning on or after June 15, 2011, and should be applied
retrospectively to the beginning of the annual period of adoption for purposes of identifying TDRs. The measurement of
impairment for any newly identified TDRs resulting from retrospective application will be applied prospectively in the first
interim or annual period beginning on or after June 15, 2011.
(For most public institutions, the ASU takes effect July 1,
2011, but retrospective application begins as of January 1,
2011.) Nonpublic companies should apply the new guidance
for annual periods ending after December 15, 2012, including
interim periods within those annual periods. (For most nonpublic institutions, the ASU will take effect January 1, 2012.)
Early adoption of the ASU is permitted for both public and
nonpublic entities. Nonpublic entities that adopt early are
subject to a retrospective identification requirement. For
additional information, institutions should refer to ASU
2011-02, which is available at http://www.fasb.org/jsp/FASB/
Page/SectionPage&cid=1176156316498.
Accounting for Loan Participations – Amended ASC Topic 860
(formerly FAS 166) modified the criteria that must be met in
order for a transfer of a portion of a financial asset, such as a
loan participation, to qualify for sale accounting. These
changes apply to transfers of loan participations on or after
the effective date of amended ASC Topic 860 (January 1,
2010, for banks with calendar year fiscal year), including
advances under lines of credit that are transferred on or after

20

2012, Volume 6, No. 3

Quarterly Banking Profile
the effective date of amended ASC Topic 860 even if the line
of credit agreements were entered into before this effective
date. Therefore, banks with a calendar-year fiscal year must
account for transfers of loan participations on or after January
1, 2010, in accordance with amended ASC Topic 860. In
general, loan participations transferred before the effective
date of amended ASC Topic 860 are not affected by this new
accounting standard.
Under amended ASC Topic 860, if a transfer of a portion of
an entire financial asset meets the definition of a “participating interest,” then the transferor (normally the lead lender)
must evaluate whether the transfer meets all of the conditions
in this accounting standard to qualify for sale accounting.
Other-Than-Temporary Impairment – When the fair value of an
investment in an individual available-for-sale or held-tomaturity security is less than its cost basis, the impairment is
either temporary or other-than-temporary. The amount of the
total other-than-temporary impairment related to credit loss
must be recognized in earnings, but the amount of total
impairment related to other factors must be recognized in
other comprehensive income, net of applicable taxes. To
determine whether the impairment is other-than-temporary,
an institution must apply the applicable accounting guidance
– refer to previously published Quarterly Banking Profile notes:
http://www2.fdic.gov/qbp/2011mar/qbpnot.html.
ASC Topic 805 (formerly 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.
ASC Topic 820 (formerly FASB Statement No. 157 Fair Value
Measurements issued in September 2006) and ASC Topic 825
­(formerly 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
FDIC Quarterly

a transaction is not orderly. The FSP is effective for interim
and annual reporting periods ending after June 15, 2009,
with early adoption permitted for periods ending after
March 15, 2009.
Fair value continues to be used for derivatives, trading securities, and available-for-sale securities. Changes in fair value go
through earnings for trading securities and most derivatives.
Changes in the fair value of available-for-sale securities are
reported in other comprehensive income. Available-for-sale
securities and held-to-maturity debt securities are written
down to fair value if impairment is other than temporary and
loans held for sale are reported at the lower of cost or fair
value.
FAS 159 allows institutions to report certain financial assets
and liabilities at fair value with subsequent changes in fair
value included in earnings. In general, an institution may
elect the fair value option for an eligible financial asset or
­liability when it first recognizes the instrument on its balance
sheet or enters into an eligible firm commitment.
ASC Topic 715 (formerly FASB Statement No. 158 Employers’
Accounting for Defined Benefit Pension and Other Postretirement
Plans) – refer to previously published Quarterly Banking Profile
notes: http://www2.fdic.gov/qbp/2011mar/qbpnot.html.
ASC Topic 860 (formerly FASB Statement No. 156 Accounting for
Servicing of Financial Assets) – refer to previously published
Quarterly Banking Profile notes: http://www2.fdic.gov/
qbp/2011mar/qbpnot.html.
ASC Topic 815 (formerly FASB Statement No. 155 Accounting for
Certain Hybrid Financial Instruments) – refer to previously published Quarterly Banking Profile notes: http://www2.fdic.gov/
qbp/2011mar/qbpnot.html.
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,
ASC Topic 860 (formerly FASB Statement No. 140) requires
that loans with this buy-back option must be brought back on
the issuer’s books as assets. The rebooking of GNMA loans is
required regardless of whether the issuer intends to exercise
the 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.
ASC Topics 860 & 810 (formerly FASB Statements 166 & 167) –
In June 2009, the FASB issued Statement No. 166,
Accounting for Transfers of Financial Assets (FAS 166), and
Statement No. 167, Amendments to FASB Interpretation
No. 46(R) (FAS 167), which change the way entities account
for securitizations and special purpose entities. FAS 166
revised FASB Statement No. 140, Accounting for Transfers
and Servicing of Financial Assets and Extinguishments of
Liabilities, by eliminating the concept of a “qualifying specialpurpose entity,” creating the concept of a “participating interest,” changing the requirements for derecognizing financial
assets, and requiring additional disclosures. FAS 167 revised
FASB Interpretation No. 46(R), Consolidation of Variable
Interest Entities, by changing how a bank or other company
determines when an entity that is insufficiently capitalized or
is not controlled through voting or similar rights, i.e., a “variable interest entity” (VIE), should be consolidated. Under
FAS 167, a bank must perform a qualitative assessment to
determine whether its variable interest or interests give it a
21

2012, Volume 6, No. 3

controlling financial interest in a VIE. If a bank’s variable
interest or interests provide it with the power to direct the
most significant activities of the VIE, and the right to receive
benefits or the obligation to absorb losses that could potentially be significant to the VIE, the bank is the primary beneficiary of, and therefore must consolidate, the VIE.
Both FAS 166 and FAS 167 take effect as of the beginning of
each bank’s first annual reporting period that begins after
November 15, 2009, for interim periods therein, and for 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.
ASC Topic 740 (formerly FASB Interpretation No. 48 on Uncertain
Tax Positions) – refer to previously published Quarterly Banking
Profile notes: http://www2.fdic.gov/qbp/2011mar/qbpnot.html.
ASC Topic 718 (formerly 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.
ASC Topic 815 (formerly 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.
Accounting Standards Codification – refer to previously published
Quarterly Banking Profile notes: http://www2.fdic.gov/
qbp/2011sep/qbpnot.html.

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

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository
institutions, premises, fixed assets, direct investments in real
estate, investment in unconsolidated subsidiaries, customers’
liability on acceptances outstanding, assets held in trading
accounts, federal funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid
deposit insurance assessments, and other assets.
All other liabilities – bank’s liability on acceptances, limited-life
preferred stock, allowance for estimated off-balance-sheet credit losses, fair market value of derivatives, and other liabilities.
Assessment base – effective April 1, 2011, the deposit insurance assessment base has changed to “average consolidated
total assets minus average tangible equity” with an additional
adjustment to the assessment base for banker’s banks and custodial banks, as permitted under Dodd-Frank. Previously the
assessment base was “assessable deposits” and consisted of DIF
deposits (deposits insured by the FDIC Deposit Insurance
Fund) in banks’ domestic offices with certain adjustments.

FDIC Quarterly

Derivatives transaction types:
Futures and forward contracts – contracts in which the buyer
agrees to purchase and the seller agrees to sell, at a specified future date, a specific quantity of an underlying variable or index at a specified price or yield. These contracts
exist for a variety of variables or indices, (traditional agricultural or physical commodities, as well as currencies and
interest rates). Futures contracts are standardized and are
traded on organized exchanges which set limits on counterparty credit exposure. Forward contracts do not have
standardized terms and are traded over the counter.
Option contracts – contracts in which the buyer acquires the
right to buy from or sell to another party some specified
amount of an un­derlying variable or index at a stated price
(strike price) during a period or on a specified future date,

22

2012, Volume 6, No. 3

Quarterly Banking Profile
in return for compensation (such as a fee or premium).
The seller is obligated to purchase or sell the variable or
index at the discretion of the buyer of the contract.
Swaps – obligations between two parties to exchange a
series of cash flows at periodic intervals (settlement dates),
for a specified period. The cash flows of a swap are either
fixed, or determined for each settlement date by multiplying the quantity (notional principal) of the underlying
variable or index by specified reference rates or prices.
Except for currency swaps, the notional principal is used
to calculate each payment but is not exchanged.
Derivatives underlying risk exposure – the potential exposure
characterized by the level of banks’ concentration in particular underlying instruments, in general. Exposure can result
from market risk, credit risk, and operational risk, as well as,
interest rate risk.
Domestic deposits to total assets – total domestic office deposits
as a percent of total assets on a consolidated basis.
Earning assets – all loans and other investments that earn
interest or dividend income.
Efficiency ratio – Noninterest expense less amortization of
intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net
operating revenues that are absorbed by overhead expenses,
so that a lower value indicates greater efficiency.
Estimated insured deposits – in general, insured deposits are
total domestic deposits minus estimated uninsured deposits.
Beginning March 31, 2008, for institutions that file Call
Reports, insured deposits are total assessable deposits minus
estimated uninsured deposits. Beginning September 30, 2009,
insured deposits include deposits in accounts of $100,000 to
$250,000 that are covered by a temporary increase in the
FDIC’s standard maximum deposit insurance amount
(SMDIA). The Dodd-Frank Wall Street Reform and
Consumer Protection Act enacted on July 21, 2010, made
permanent the standard maximum deposit insurance amount
(SMDIA) of $250,000. Also, the Dodd-Frank Act amends
the Federal Deposit Insurance Act to include noninterestbearing transaction accounts as a new temporary deposit
insurance account category. All funds held in noninterestbearing transaction accounts are fully insured, without limit,
from December 31, 2010, through December 31, 2012.
Failed/assisted institutions – an institution fails when regulators
take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or
another healthy institution. This action may require the
FDIC to provide funds to cover losses. An institution is
defined as “assisted” when the institution remains open and
receives assistance in order to continue operating.
Fair Value – the valuation of various assets and liabilities on
the balance sheet—including trading assets and liabilities,
available-for-sale securities, loans held for sale, assets and
­liabilities accounted for under the fair value option, and foreclosed assets—involves the use of fair values. During periods
of market stress, the fair values of some financial instruments
and nonfinancial assets may decline.
FHLB advances – all borrowings by FDIC insured institutions
from the Federal Home Loan Bank System (FHLB), as
­reported by Call Report filers and by TFR filers.

FDIC Quarterly

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

23

2012, Volume 6, No. 3

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

Tier 1
Risk-Based
Capital*

Total
Risk-Based
Capital*

Tier 1
Leverage

Tangible
Equity

Well-capitalized

≥10

and

≥6

and

≥5

–

Adequately
capitalized

≥8

and

≥4

and

≥4

–

Undercapitalized

≥6

and

≥3

and

≥3

–

Significantly
undercapitalized

<6

or

<3

or

<3

Critically
undercapitalized

–

–

–

and

supervisory groups as well as the initial base assessment rates
(in basis points) for each risk category. Supervisory Group A
generally includes institutions with CAMELS composite ratings of 1 or 2; Supervisory Group B generally includes institutions with a CAMELS composite rating of 3; and Supervisory
Group C generally includes institutions with CAMELS composite ratings of 4 or 5. For purposes of risk-based assessment
capital groups, undercapitalized includes institutions that are
significantly or critically undercapitalized.
Supervisory Group
A

1. Well Capitalized

I
5–9 bps

2. Adequately Capitalized
3. Undercapitalized

II
14 bps

B

C

II
14 bps

III
23 bps

III
23 bps

IV
35 bps

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

>2
≤2

* As a percentage of risk-weighted assets.

Risk Categories and Assessment Rate Schedule – The current risk
categories became effective January 1, 2007. Capital ratios
and supervisory ratings distinguish one risk category from
another. Effective April 1, 2011, risk categories for large institutions (generally those with at least $10 billion in assets) are
eliminated. The following table shows the relationship of risk
categories (I, II, III, IV) for small institutions to capital and

FDIC Quarterly

Capital Category

24

2012, Volume 6, No. 3

Quarterly Banking Profile
institutions that are not well capitalized or do not have a
composite CAMELS rating of 1 or 2 may increase (not to
exceed 10 basis points) if their brokered deposits exceed 10
percent of domestic deposits. After applying all possible
adjustments (excluding the Depository Institution Debt
Adjustment), minimum and maximum total base assessment
rates for each risk category are as follows:

Securities – excludes securities held in trading accounts.
Banks’ securities portfolios consist of securities designated as
“held-to-maturity,” which are reported at amortized cost
(book value), and securities designated as “available-for-sale,”
reported at fair (market) value.
Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments
for income taxes. Thrift Financial Report (TFR) filers also
include gains (losses) on the sales of assets held for sale.
(TFR filers began filing Call Reports effective with the quarter ending March 31, 2012.)
Seller’s interest in institution’s own securitizations – the reporting
bank’s ownership interest in loans and other assets that have
been securitized, except an interest that is a form of recourse
or other seller-provided credit enhancement. Seller’s interests
differ from the securities issued to investors by the securitization structure. The principal amount of a seller’s interest is
generally equal to the total principal amount of the pool of
assets included in the securitization structure less the principal amount of those assets attributable to investors, i.e., in the
form of securities issued to investors.
Small Business Lending Fund – The Small Business Lending
Fund (SBLF) was enacted into law in September 2010 as part
of the Small Business Jobs Act of 2010 to encourage lending
to small businesses by providing capital to qualified com­
munity institutions with assets of less than $10 billion. The
SBLF Program, which is administered by the U.S. Treasury
Department, provided funding to 332 institutions for more
than $4 billion by September 27, 2011, the statutory end of
the program (http://www.treasury.gov/resource-center/
sb-programs/Pages/Small-Business-Lending-Fund.aspx).
Under the SBLF Program, the Treasury Department purchased noncumulative perpetual preferred stock from qualifying depository institutions and holding companies (other than
Subchapter S and mutual institutions). When this stock has
been issued by a depository institution, it is reported as
“Perpetual preferred stock and related surplus.” For regulatory
capital purposes, this noncumulative perpetual preferred stock
qualifies as a component of Tier 1 capital. Qualifying
Subchapter S corporations and mutual institutions issue unsecured subordinated debentures to the Treasury Department
through the SBLF. Depository institutions that issued these
debentures report them as “Subordinated notes and debentures.” For regulatory capital purposes, the debentures are eligible for inclusion in an institution’s Tier 2 capital in
accordance with their primary federal regulator’s capital standards. To participate in the SBLF Program, an institution
with outstanding securities issued to the Treasury Department
under the Capital Purchase Program (CPP) was required to
refinance or repay in full the CPP securities at the time of the
SBLF funding. Any outstanding warrants that an institution
issued to the Treasury Department under the CPP remain
outstanding after the refinancing of the CPP stock through
the SBLF Program unless the institution chooses to repurchase them.
Subchapter S corporation – a Subchapter S corporation is treated as a pass-through entity, similar to a partnership, for federal income tax purposes. It is generally not subject to any
federal income taxes at the corporate level. This can have the
effect of reducing institutions’ reported taxes and increasing
their after-tax earnings.

Total Base Assessment Rates*
Large and
Risk
Risk
Risk
Risk
Highly
Category Category Category Category Complex
I
II
III
IV
Institutions
Initial base
assessment rate

5–9

14

23

35

5–35

Unsecured debt
adjustment

-4.5–0

-5–0

-5–0

-5–0

-5–0

Brokered deposit
adjustment

—

0–10

0–10

0–10

0–10

Total Base
Assessment rate

2.5–9

9–24

18–33

30–45

2.5–45

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

Beginning in 2007, each institution is assigned a risk-based
rate for a quarterly assessment period near the end of the
quarter following the assessment period. Payment is generally
due on the 30th day of the last month of the quarter following the assessment period. Supervisory rating changes are
effective for assessment purposes as of the examination transmittal date.
Special Assessment – On May 22, 2009, the FDIC board
approved a final rule that imposed a 5 basis point special
assessment as of June 30, 2009. The special assessment was
levied on each insured depository institution’s assets minus
its Tier 1 capital as reported in its report of condition as of
June 30, 2009. The special assessment was collected
September 30, 2009, at the same time that the risk-based
assessment for the second quarter of 2009 was collected.
The special assessment for any institution was capped at
10 basis points of the institution’s assessment base for the
second quarter of 2009 risk-based assessment.
Prepaid Deposit Insurance Assessments – In November 2009,
the FDIC Board of Directors adopted a final rule requiring
insured depository institutions (except those that are
exempted) to prepay their quarterly risk-based deposit
insurance assessments for the fourth quarter of 2009, and
for all of 2010, 2011, and 2012, on December 30, 2009.
Each institution’s regular risk-based deposit insurance
assessment for the third quarter of 2009, which is paid in
arrears, also was payable on December 30, 2009. For regulatory capital purposes, an institution may assign a zeropercent risk weight to the amount of its prepaid deposit
assessment asset.
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.

FDIC Quarterly

25

2012, Volume 6, No. 3

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.

FDIC Quarterly

Unused loan commitments – includes credit card lines, home
equity lines, commitments to make loans for construction,
loans secured by commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for
sale, which are accounted for as derivatives on the balance
sheet.)
Yield on earning assets – total interest, dividend, and fee
income earned on loans and investments as a percentage of
average earning assets.

26

2012, Volume 6, No. 3

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