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FDIC Quarterly Quarterly Banking Profile: Second Quarter 2013 Highlights: ■ ■ ■ ■ ■ Earnings Rise 23 Percent to $42.2 Billion Lower Loss Provisions, Higher Trading Income Boost Net Income Noncurrent Loan Balances Decline by $21.7 Billion Fund Balance Increases to $37.9 Billion DIF Reserve Ratio Rises 4 Basis Points to 0.63 Percent 2013, Volume 7, 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 Martin J. Gruenberg Director, Division of Insurance and Research Diane Ellis Executive Editors Richard A. Brown Maureen E. Sweeney Managing Editors Matthew Green Jack Reidhill Philip A. Shively Editor Frank Solomon Publication Manager Lynne Montgomery Media Inquiries (202) 898-6993 FDIC Quarterly 2013, Volume 7, Number 3 Quarterly Banking Profile: Second Quarter 2013 FDIC-insured institutions reported aggregate net income of $42.2 billion in the second quarter of 2013, a $7.8 billion (22.6 percent) increase from the $34.4 billion in profits that the industry reported a year earlier. This is the 16th consecutive quarter that earnings have registered a year-over-year increase. Increased noninterest income, lower noninterest expenses, and reduced provisions for loan losses accounted for the increase in earnings from a year ago. Year-over-year earnings increased at more than half (53.8 percent) of the 6,940 insured institutions reporting financial results. The proportion of banks that were unprofitable fell to 8.2 percent, from 11.3 percent a year earlier. See page 1. Insurance Fund Indicators The Deposit Insurance Fund (DIF) increased by $2.1 billion during the second quarter to $37.9 billion. Estimated insured deposits decreased by 0.8 percent during the second quarter. The DIF reserve ratio was 0.63 percent on June 30, 2013, up from 0.59 percent at March 31, 2013. Twelve 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 2013 INSURED INSTITUTION PERFORMANCE Earnings Rise 23 Percent to $42.2 Billion ■ Lower Loss Provisions, Higher Trading Income Boost Net Income ■ Noncurrent Loan Balances Decline by $21.7 Billion ■ Number of Insured Institutions Falls Below 7,000 ■ Earnings Rise for Sixteenth Consecutive Quarter Noninterest Income Growth Outweighs Drop in Net Interest Income Rising noninterest income and falling loan loss expenses continued to lift bank earnings in the second quarter. FDIC-insured institutions reported net income of $42.2 billion, an increase of $7.8 billion (22.6 percent) compared with second quarter 2012 when industry earnings were reduced by losses on credit derivatives. This is the 16th consecutive quarter that earnings have registered a year-over-year increase. For a second consecutive quarter, industry earnings reached a new nominal high. However, the quarterly return on assets (ROA) of 1.17 percent, while up from 0.99 percent a year ago, remained below the 1.27 percent average for the industry from 2000 through 2006. More than half of all banks— 53.8 percent—reported higher quarterly net income than a year ago, and only 8.2 percent reported negative net income. This is the lowest proportion of unprofitable institutions since third quarter 2006. Net operating revenue—the sum of net interest income and total noninterest income—totaled $170.6 billion, an increase of $4.9 billion (3 percent) from a year ago. Noninterest income was $6.7 billion (11.1 percent) higher than in second quarter 2012. Income from trading rose by $5.1 billion (238.3 percent) compared with a year ago, when the industry reported a net loss on credit derivatives. Net gains on sales of loans and other assets were $1.9 billion (63.7 percent) above the level of a year earlier. For the third quarter in a row and fourth time in the last five quarters, net interest income posted a yearover-year decline, falling by $1.8 billion (1.7 percent) as interest income from loans and other investments declined faster than interest expense on deposits and other liabilities. Banks set aside $8.6 billion in provisions for loan losses during the quarter, a $5.6 billion (39.6 percent) reduction from a year earlier. This is the lowest quarterly loss provision for the industry since third quarter 2006, when quarterly provisions totaled $7.6 billion. Total noninterest expense was $1.4 billion (1.4 percent) lower than in second quarter 2012, when industry expenses were elevated by restructuring charges. Chart 1 Chart 2 Quarterly Net Income Billions of Dollars Unprofitable Institutions and Institutions With Increased Earnings $50 $40 35.2 $30 17.4 $20 $10 23.8 28.7 28.5 21.4 37.5 Percentage of All Insured Institutions 80 40.3 42.2 34.5 70 25.3 50 -1.7 -6.1 40 -12.6 -$20 30 Securities and Other Gains/Losses, Net Net Operating Income -$30 20 -$40 -$50 Percentage of Institutions With Year-Over-Year Quarterly Income Growth 60 2.1 $0 -$10 20.9 34.8 34.4 10 1 FDIC Quarterly 2 3 2009 4 1 2 3 4 2010 1 2 3 2011 4 1 2 3 2012 4 1 2 2013 0 1 Percentage of Institutions With Quarterly Losses 2006 2007 2008 2009 2010 2011 2012 2013 2013, Volume 7, No. 3 (19.1 percent), and noncurrent real estate loans secured by nonfarm nonresidential properties fell by $2.5 billion (8.8 percent). During the quarter, the percentage of total loans and leases that were noncurrent declined from 3.41 percent to 3.09 percent, the lowest level since fourth quarter 2008. Loan Losses Fall to Lowest Level Since 2007 Net loan and lease charge-offs totaled $14.2 billion, a $6.3 billion (30.7 percent) year-over-year decline. This is the smallest quarterly total since third quarter 2007. While charge-offs were down across all major loan categories, the overall decline was led by residential real estate loans. Charge-offs of home equity lines of credit were $1.1 billion (41.7 percent) below the level of a year ago, while charge-offs of other loans secured by 1-to-4 family residential properties were $1.4 billion (32.1 percent) lower. Smaller reductions occurred in charge-offs of real estate construction and land loans (down $772 million, or 67 percent), real estate loans secured by nonfarm nonresidential properties (down $775 million, or 52.5 percent), commercial and industrial loans (down $760 million, or 37.3 percent), and credit cards (down $748 million, or 11 percent). Reserve Coverage of Troubled Loans Improves For the 13th quarter in a row, the banking industry’s reserves for loan losses posted a quarterly decline. Between the end of March and the end of June, total reserves fell by $6.4 billion (4.1 percent), as net chargeoffs removed $14.2 billion from reserves and loan-loss provisions added only $8.6 billion to reserves. As has been typically the case, most of the reduction in reserves occurred at large institutions, but quarterly charge-offs exceeded loss provisions at almost 40 percent of all banks in the quarter. Even with the reserve reductions, the industry’s coverage ratio of reserves to noncurrent loans rose from 59.6 percent to 62.3 percent during the quarter because of the sizable decline in noncurrent loan balances. Noncurrent Loans Post Thirteenth Consecutive Quarterly Decline Noncurrent loan levels also showed improvement across all major loan categories. The amount of loans and leases that were 90 days or more past due or in nonaccrual status fell by $21.7 billion (8.3 percent) during the second quarter, marking the 13th consecutive quarter that noncurrent balances have declined. Noncurrent first lien mortgage loans declined by $13.3 billion (8.2 percent), while noncurrent real estate construction and land loans dropped by $2.8 billion Lower Securities Values Lead to a Decline in Equity Capital Equity capital of insured institutions declined by $14 billion (0.9 percent), largely due to declines in the market values of securities caused by rising mediumand long-term interest rates. Higher interest rates were primarily responsible for a $51.1 billion drop in Chart 3 Chart 4 Quarterly Revenue and Loan-Loss Provision Billions of Dollars $180 Percent 5.0 Quarterly Loan-Loss Provision 4.5 $160 4.0 $140 Quarterly Net Operating Revenue* $120 3.5 $100 3.0 $80 2.5 $60 2.0 $40 1.5 $20 1.0 $0 Quarterly Net Interest Margins 1 2 3 2009 4 1 2 3 2010 4 1 2 3 2011 4 1 * Net operating revenue = net interest income + noninterest income. FDIC Quarterly 2 3 2012 4 Assets < $1 Billion Assets $1 Billion - $10 Billion Assets $10 Billion - $100 Billion Assets > $100 Billion 0.5 1 2 2013 0.0 2 2006 2007 2008 2009 2010 2011 2012 2013 2013, Volume 7, No. 3 Quarterly Banking Profile unrealized gains on banks’ available-for-sale investment securities. Under Generally Accepted Accounting Principles (GAAP), changes in unrealized gains are reflected in equity capital. However, they are not reflected in regulatory capital. The industry’s Tier 1 leverage capital increased by $17.1 billion (1.3 percent) during the quarter, while total risk-based capital rose by $15 billion (1 percent). Retained earnings totaled $21.3 billion in the second quarter, up from $14.9 billion in second quarter 2012. At the end of the quarter, almost 98 percent of all insured institutions, representing 99.7 percent of total industry assets, met or exceeded the requirements for the highest regulatory capital category, as defined for Prompt Corrective Action purposes. Loan Balances Rise by $73.8 Billion Total Assets Fall by $14.8 Billion Total liabilities of insured institutions registered a small $457 million decline in the second quarter. Deposit balances fell by $38.7 billion (0.4 percent), while Federal Home Loan Bank (FHLB) advances increased by $38.2 billion (11.6 percent). Most of the increase in FHLB borrowings—$34.6 billion— consisted of borrowings maturing in one year or less. Interest-bearing deposits in domestic offices declined by $44.4 billion (0.6 percent), while balances in noninterest-bearing accounts rose by $13.4 billion (0.5 percent). Foreign office deposits declined by $7.7 billion (0.6 percent). Total loans and leases increased by $73.8 billion (1 percent), as commercial and industrial loan balances grew by $30.4 billion (2 percent), real estate loans secured by nonfarm nonresidential real estate properties rose by $11.1 billion (1 percent), auto loans increased by $10 billion (3.1 percent), and credit card balances grew by $10.1 billion (1.5 percent). Balances of 1-to-4 family residential real estate loans declined by $31.9 billion (1.3 percent), with home equity lines falling by $9.8 billion (1.8 percent), and other 1-to-4 family residential real estate loans declining by $22.1 billion (1.2 percent). FHLB Borrowings Increase For a second consecutive quarter, total industry assets posted a modest decline, falling by $14.8 billion (0.1 percent). Assets in trading accounts declined by $65.7 billion (9.1 percent), as balances of securities held for trading declined by $44.4 billion (14.6 percent). Trading securities are reported at market value, so it is likely that some of this decline was caused by the rise in medium- and long-term interest rates during the quarter. Balances of securities held in investment accounts declined by $53.2 billion (1.8 percent), due primarily to the $51.1 billion drop in unrealized gains noted above. Chart 5 Chart 6 Noncurrent Loans and Loan Losses Continue to Fall but Remain Well Above Pre-Crisis Levels Quarterly Change in Loan Balances Billions of Dollars $300 Percent 6 $100 $50 $0 -$50 3 -$100 -$150 2 -$200 -$250 1 Quarterly Net Charge-Off Rate 2006 FDIC Quarterly 2007 2008 221* 203 134 $150 4 0 189 $200 Noncurrent Loan Rate 5 237 $250 2009 2010 2011 2012 118 102 43 67 61 28 74 65 24 -6 -7 -14 -63 -116 -109 -140 -133 -107 -37 -126 -210 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 2012 2013 2011 2007 2009 2010 2008 *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. 2013 3 2013, Volume 7, No. 3 List” declined for a ninth consecutive quarter, from 612 to 553. Total assets of “problem” banks fell from $213.3 billion to $192.5 billion. Insured institutions reported 2,097,292 full-time equivalent employees in the second quarter, down 5,544 from the previous quarter, and 10,900 fewer than in second quarter 2012. The Number of “Problem” Banks Falls Below 600 The number of FDIC-insured institutions filing quarterly Call Reports declined to 6,940 at mid-year, from 7,019 at the end of the first quarter. During the second quarter, 62 insured institutions were merged into other institutions and 12 failed. For the eighth consecutive quarter, no new reporting institutions were added. The last de novo charter occurred in fourth quarter 2010. The number of institutions on the FDIC’s “Problem Author: Chart 7 Ross Waldrop, Senior Banking Analyst Division of Insurance and Research (202) 898-3951 Chart 8 Long-Term Assets as a Share of Total Assets* Unrealized Gains/Losses on Available-for-Sale Securities Percent of Total Assets 30 Billions of Dollars $80 FDIC-Insured Call Report Filers* 73 $60 25 36 $40 20 $20 13 42 18 34 45 42 47 54 66 57 18 17 7 6 $0 15 -$20 -19 10 -$40 -$60 5 -$80 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -63 -56 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 2011 2013 2012 2010 2009 2008 *Prior to 2012, does not include data for insured savings institutions that file Thrift Financial Reports (TFRs). Beginning in 2012, all insured institutions file Call Reports. *Long-term assets = assets > 5 years. Call Report filers only. Chart 9 Chart 10 Noninterest-Bearing Deposits in Domestic Offices Trillions of Dollars 3.0 2.5 -29 -41 -43 200 Quarterly Changes in the Number of Troubled Institutions 175 Noninterest-Bearing Transaction Balances > $250,000 All Other Domestic Noninterest-Bearing Deposits 50 150 100 75 1.5 50 25 1.0 0 -25 0.5 Quarterly Failures Net Quarterly Change in Number of Problem Banks 24 125 2.0 45 150 41 12 9 21 81 2 54 53 2 14 27 45 136 111 41 73 54 30 31 24 26 22 26 18 16 15 12 8 4 12 4 -23 -21 -31 -41 -40 -38 -43 -39 -59 -50 0.0 -75 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 2007 2008 2009 2010 2011 2012 2013 FDIC Quarterly 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 2008 2009 2010 2011 2012 2013 2013, Volume 7, 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�������������������������������������������������������������������������������������� 2013** 1.15 10.22 9.34 1.90 0.78 2.70 3.27 22.89 6,940 5,980 960 8.16 553 $192 16 0 2012** 0.99 8.84 9.25 2.40 1.13 3.15 3.48 14.18 7,245 6,222 1,023 10.89 732 $282 31 0 2012 1.00 8.91 9.15 2.20 1.10 4.02 3.42 17.80 7,083 6,096 987 10.89 651 $233 51 0 2011 0.88 7.79 9.07 2.60 1.55 4.30 3.60 43.58 7,357 6,291 1,066 16.22 813 $319 92 0 2010 0.65 5.85 8.89 3.11 2.55 1.77 3.76 1594.73 7,658 6,530 1,128 22.15 884 $390 157 0 2009 -0.08 -0.73 8.60 3.37 2.52 -5.45 3.49 -155.98 8,012 6,840 1,172 30.84 702 $403 140 8 2008 0.03 0.35 7.47 1.91 1.29 6.19 3.16 -90.71 8,305 7,087 1,218 24.89 252 $159 25 5 * Excludes insured branches of foreign banks (IBAs). ** 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 2013 6,940 2,097,292 1st Quarter 2013 7,019 2,102,836 2nd Quarter 2012 7,245 2,108,192 %Change 12Q2-13Q2 -4.2 -0.5 $14,409,675 4,046,948 1,855,206 1,083,339 202,491 528,652 1,563,227 1,310,290 670,283 65,079 748,975 1,831 7,732,687 149,043 7,583,644 2,945,355 32,615 371,516 3,476,546 $14,424,502 4,058,725 1,877,257 1,072,289 201,594 538,501 1,532,786 1,291,638 660,218 59,837 717,871 1,926 7,658,931 155,466 7,503,465 2,998,536 35,893 367,040 3,519,568 $14,031,315 4,086,306 1,874,709 1,058,370 217,397 580,601 1,423,307 1,282,444 664,734 64,010 659,291 2,042 7,513,315 176,597 7,336,718 2,937,399 41,749 366,713 3,348,735 2.7 -1.0 -1.0 2.4 -6.9 -8.9 9.8 2.2 0.8 1.7 13.6 -10.3 2.9 -15.6 3.4 0.3 -21.9 1.3 3.8 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������������������������������������������������������������������������������������������� 14,409,675 10,780,493 9,395,551 1,384,942 1,328,763 113,621 559,612 1,627,187 1,612,371 14,424,502 10,819,218 9,426,586 1,392,632 1,300,318 116,075 547,333 1,641,557 1,626,394 14,031,315 10,322,536 8,913,731 1,408,805 1,390,005 116,634 595,006 1,607,133 1,588,810 2.7 4.4 5.4 -1.7 -4.4 -2.6 -5.9 1.2 1.5 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��������������������������������������������������������������������������������������� 75,429 239,323 102,091 1,678,439 12,704,468 368,399 5,994,947 17,992,424 765,368 236,526,457 80,031 261,006 105,819 1,698,273 12,753,203 330,183 5,927,576 18,134,329 811,651 232,672,271 83,874 292,964 106,663 1,713,698 12,272,406 325,850 5,805,908 16,664,683 988,944 225,035,729 -10.1 -18.3 -4.3 -2.1 3.5 13.1 3.3 8.0 -22.6 5.1 (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 2013 $235,235 27,773 207,462 19,608 133,352 204,004 3,436 37,571 -91 82,976 82,549 30,133 35,346 47,203 80,601 First Half 2012 $246,591 34,846 211,745 28,543 121,605 209,801 5,549 30,873 -12 69,669 69,290 42,202 40,481 28,809 65,590 FDIC Quarterly %Change -4.6 -20.3 -2.0 -31.3 9.7 -2.8 -38.1 21.7 N/M 19.1 19.1 -28.6 -12.7 63.9 22.9 2nd Quarter 2013 $117,293 13,608 103,685 8,600 66,867 101,991 1,368 18,835 -32 42,463 42,235 14,167 20,947 21,288 41,541 2nd Quarter 2012 $122,488 17,051 105,437 14,227 60,182 103,408 2,536 15,734 -126 34,658 34,449 20,450 19,540 14,910 32,888 %Change 12Q2-13Q2 -4.2 -20.2 -1.7 -39.6 11.1 -1.4 -46.0 19.7 N/M 22.5 22.6 -30.7 7.2 42.8 26.3 N/M - Not Meaningful 5 2013, Volume 7, No. 3 TABLE III-A. Second Quarter 2013, All FDIC-Insured Institutions Asset Concentration Groups* SECOND QUARTER All Insured (The way it is...) Institutions Number of institutions reporting����������������������� 6,940 Commercial banks������������������������������������� 5,980 Savings institutions����������������������������������� 960 Total assets (in billions)������������������������������������ $14,409.7 Commercial banks������������������������������������� 13,350.1 Savings institutions����������������������������������� 1,059.5 Total deposits (in billions)��������������������������������� 10,780.5 Commercial banks������������������������������������� 9,973.5 Savings institutions����������������������������������� 807.0 Bank net income (in millions)��������������������������� 42,235 Commercial banks������������������������������������� 38,892 Savings institutions����������������������������������� 3,343 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���������������� 60.70 58.76 8.16 53.76 Structural Changes New reporters�������������������������������������������� Institutions absorbed by mergers������������� Failed institutions�������������������������������������� 0 62 12 PRIOR SECOND QUARTERS (The way it was...) Return on assets (%)��������������������������������2012 ��������������������������������������2010 ������������������������������������� 2008 Net charge-offs to loans & leases (%)�����2012 ��������������������������������������2010 ������������������������������������� 2008 3.69 0.43 3.26 1.86 2.83 0.24 1.15 1.70 1.17 10.44 0.74 Credit Card International Agricultural Commercial Banks Banks Banks Lenders 16 4 1,521 3,455 14 4 1,501 3,123 2 0 20 332 $590.4 $3,645.4 $236.0 $4,625.4 518.5 3,645.4 229.5 4,275.5 71.9 0.0 6.5 350.0 324.3 2,522.1 196.4 3,623.5 276.6 2,522.1 192.4 3,363.7 47.7 0.0 4.1 259.8 4,857 9,329 717 12,688 3,921 9,329 685 11,797 936 0 32 890 10.17 0.74 9.42 4.33 5.76 2.01 3.30 5.16 3.28 21.84 3.46 2.84 0.44 2.40 2.02 2.51 0.10 1.01 1.49 1.03 11.52 1.05 4.15 0.57 3.58 0.66 2.48 0.12 1.18 1.40 1.21 10.88 0.14 75.51 28.13 42.80 0.00 75.00 60.64 0.00 100.00 0 0 0 0.99 0.63 0.14 1.10 2.68 1.32 Mortgage Consumer Lenders Lenders 603 47 167 36 436 11 $562.0 $103.9 224.6 26.0 337.4 77.9 419.9 86.7 172.6 19.9 247.3 66.8 1,483 436 813 170 671 266 4.02 0.47 3.56 1.43 2.94 0.22 1.08 1.48 1.10 9.31 0.46 3.57 0.72 2.85 1.17 2.28 0.07 1.03 1.53 1.07 9.42 0.41 4.65 0.75 3.90 2.57 3.11 0.53 1.67 2.64 1.68 17.35 1.07 147.27 71.90 27.00 62.03 3.35 47.47 62.92 9.93 59.25 59.11 10.78 45.44 0 0 0 0 9 0 0 42 10 2.97 1.45 2.39 0.72 1.00 0.26 1.27 1.03 1.17 4.02 11.59 5.87 1.37 2.04 1.27 0.23 0.65 0.26 Other Specialized All Other <$1 Billion <$1 Billion 416 809 376 703 40 106 $64.1 $143.7 59.8 119.0 4.3 24.8 51.7 121.0 48.7 101.1 3.0 19.9 295 347 165 290 129 58 All Other >$1 Billion 69 56 13 $4,438.7 4,251.8 186.9 3,434.8 3,276.3 158.5 12,083 11,722 360 3.00 0.45 2.55 4.56 4.47 0.07 1.73 2.44 1.80 12.41 0.45 4.02 0.57 3.44 1.21 3.08 0.15 0.91 1.21 0.96 8.40 0.37 3.08 0.27 2.81 1.96 2.65 0.16 1.06 1.64 1.08 9.04 0.48 73.29 55.76 75.83 66.56 48.78 2.13 42.55 64.54 11.54 47.60 70.04 6.92 51.05 58.71 2.90 59.42 0 3 0 0 0 0 0 1 0 0 5 2 0 2 0 0.96 0.18 0.24 0.85 0.66 -1.46 1.82 1.26 0.82 1.07 1.57 1.85 0.90 0.43 0.99 0.98 0.65 0.12 0.75 1.97 1.00 0.64 1.15 1.82 1.53 2.20 1.75 0.55 0.60 0.66 0.43 0.49 0.29 0.92 1.90 0.94 * 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 2013, Volume 7, No. 3 Quarterly Banking Profile TABLE III-A. Second Quarter 2013, All FDIC-Insured Institutions Asset Size Distribution SECOND QUARTER All Insured (The way it is...) Institutions Number of institutions reporting����������������������������� 6,940 Commercial banks������������������������������������������� 5,980 Savings institutions����������������������������������������� 960 Total assets (in billions)������������������������������������������ $14,409.7 Commercial banks������������������������������������������� 13,350.1 Savings institutions����������������������������������������� 1,059.5 Total deposits (in billions)��������������������������������������� 10,780.5 Commercial banks������������������������������������������� 9,973.5 Savings institutions����������������������������������������� 807.0 Bank net income (in millions)��������������������������������� 42,235 Commercial banks������������������������������������������� 38,892 Savings institutions����������������������������������������� 3,343 Geographic Regions* Less Than $100 $1 Billion Greater $100 Million to to Than Million $1 Billion $10 Billion $10 Billion New York 2,141 4,146 546 107 858 1,898 3,556 438 88 467 243 590 108 19 391 $124.8 $1,256.8 $1,413.9 $11,614.1 $2,859.5 111.1 1,050.6 1,143.0 11,045.4 2,401.0 13.7 206.2 270.9 568.7 458.5 106.1 1,052.7 1,101.8 8,520.0 2,107.0 95.2 886.8 896.8 8,094.6 1,770.5 10.9 165.8 205.0 425.4 336.5 246 2,973 4,494 34,521 7,886 226 2,555 3,697 32,413 7,001 20 418 796 2,108 885 Atlanta 884 796 88 $2,980.3 2,894.0 86.3 2,280.0 2,215.5 64.5 7,667 7,486 181 Chicago 1,483 1,230 253 $3,344.8 3,230.6 114.2 2,355.4 2,268.6 86.8 9,329 8,958 371 Kansas City 1,686 1,610 76 $3,082.9 3,024.2 58.7 2,361.1 2,313.9 47.3 9,817 9,710 107 San Dallas Francisco 1,468 561 1,369 508 99 53 $867.2 $1,274.9 764.5 1,035.9 102.8 239.0 717.9 959.1 632.9 772.1 85.0 186.9 2,532 5,004 2,103 3,634 429 1,370 Performance Ratios (annualized, %) Yield on earning assets������������������������������������������ Cost of funding earning assets������������������������������ Net interest margin������������������������������������������ Noninterest income to assets��������������������������������� Noninterest expense to assets������������������������������� Loan and lease loss provision to assets���������������� Net operating income to assets����������������������������� Pretax return on assets������������������������������������������ Return on assets����������������������������������������������������� Return on equity����������������������������������������������������� Net charge-offs to loans and leases���������������������� Loan and lease loss provision to net charge-offs������������������������������������������������ Efficiency ratio�������������������������������������������������������� % of unprofitable institutions���������������������������������� % of institutions with earnings gains���������������������� 3.69 0.43 3.26 1.86 2.83 0.24 1.15 1.70 1.17 10.44 0.74 4.17 0.56 3.61 1.05 3.31 0.14 0.76 0.92 0.78 6.60 0.36 4.22 0.59 3.63 1.15 3.17 0.19 0.90 1.19 0.94 8.64 0.37 4.30 0.53 3.77 1.40 3.07 0.16 1.25 1.64 1.28 10.81 0.43 3.55 0.40 3.15 2.00 2.76 0.25 1.17 1.77 1.19 10.63 0.84 4.00 0.47 3.54 1.67 2.81 0.41 1.08 1.61 1.11 9.07 1.02 3.68 0.37 3.31 1.74 2.97 0.23 0.99 1.47 1.02 8.33 0.70 2.90 0.38 2.52 2.15 2.72 0.09 1.10 1.57 1.12 12.21 0.48 3.94 0.47 3.47 1.82 2.73 0.26 1.28 1.89 1.28 11.69 0.95 3.95 0.41 3.54 1.48 3.04 0.15 1.15 1.54 1.17 10.83 0.34 4.26 0.51 3.75 2.12 2.93 0.30 1.56 2.40 1.59 11.98 0.58 60.70 58.76 8.16 53.76 73.72 76.02 12.47 49.18 81.02 70.28 6.85 54.58 59.14 62.77 2.56 62.82 59.56 56.91 0.93 67.29 76.02 57.23 8.74 51.63 56.60 63.49 13.01 60.41 39.27 61.85 9.10 51.85 50.32 54.47 4.98 50.12 74.63 64.05 6.61 55.18 84.74 52.02 10.70 58.82 Structural Changes New reporters�������������������������������������������������� Institutions absorbed by mergers������������������� Failed institutions�������������������������������������������� 0 62 12 0 26 7 0 28 5 0 6 0 0 2 0 0 7 0 0 4 6 0 18 2 0 11 0 0 11 1 0 11 3 PRIOR SECOND QUARTERS (The way it was…) Return on assets (%)��������������������������������������2012 ��������������������������������������������2010 ������������������������������������������� 2008 0.99 0.63 0.14 0.67 0.52 0.58 0.80 0.24 0.53 1.42 0.12 0.25 0.96 0.75 0.07 0.85 0.75 0.76 0.72 0.15 0.16 0.90 0.75 0.11 1.02 0.72 0.91 1.02 0.69 0.59 2.09 0.88 -0.79 Net charge-offs to loans & leases (%)�����������2012 ��������������������������������������������2010 ������������������������������������������� 2008 1.10 2.68 1.32 0.44 0.71 0.30 0.66 1.14 0.47 0.76 1.93 1.00 1.22 3.08 1.53 1.34 4.09 1.30 1.11 2.56 1.14 0.84 1.91 1.27 1.34 2.94 1.31 0.56 1.26 0.65 0.92 2.31 1.80 * 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 2013, Volume 7, No. 3 TABLE IV-A. First Half 2013, All FDIC-Insured Institutions Asset Concentration Groups* FIRST HALF All Insured (The way it is...) Institutions Number of institutions reporting����������������������� 6,940 Commercial banks������������������������������������� 5,980 Savings institutions����������������������������������� 960 Total assets (in billions)������������������������������������ $14,409.7 Commercial banks������������������������������������� 13,350.1 Savings institutions����������������������������������� 1,059.5 Total deposits (in billions)��������������������������������� 10,780.5 Commercial banks������������������������������������� 9,973.5 Savings institutions����������������������������������� 807.0 Bank net income (in millions)��������������������������� 82,549 Commercial banks������������������������������������� 76,462 Savings institutions����������������������������������� 6,087 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 16 4 1,521 3,455 14 4 1,501 3,123 2 0 20 332 $590.4 $3,645.4 $236.0 $4,625.4 518.5 3,645.4 229.5 4,275.5 71.9 0.0 6.5 350.0 324.3 2,522.1 196.4 3,623.5 276.6 2,522.1 192.4 3,363.7 47.7 0.0 4.1 259.8 9,482 18,019 1,388 23,674 7,964 18,019 1,328 22,068 1,518 0 59 1,606 Mortgage Consumer Lenders Lenders 603 47 167 36 436 11 $562.0 $103.9 224.6 26.0 337.4 77.9 419.9 86.7 172.6 19.9 247.3 66.8 2,791 821 1,461 339 1,331 482 Other Specialized All Other <$1 Billion <$1 Billion 416 809 376 703 40 106 $64.1 $143.7 59.8 119.0 4.3 24.8 51.7 121.0 48.7 101.1 3.0 19.9 571 682 325 571 247 111 All Other >$1 Billion 69 56 13 $4,438.7 4,251.8 186.9 3,434.8 3,276.3 158.5 25,122 24,388 734 3.71 0.44 3.27 1.85 2.83 0.27 1.12 1.67 1.15 10.22 0.78 10.18 0.76 9.42 4.17 5.65 2.12 3.21 5.01 3.19 21.45 3.46 2.91 0.46 2.45 1.94 2.52 0.14 0.96 1.46 1.00 11.16 1.12 4.12 0.58 3.54 0.64 2.47 0.11 1.14 1.36 1.17 10.51 0.12 4.03 0.48 3.55 1.38 2.93 0.23 1.00 1.43 1.03 8.71 0.49 3.59 0.73 2.86 1.14 2.30 0.13 0.96 1.45 1.01 8.92 0.42 4.70 0.76 3.94 2.49 3.11 0.63 1.59 2.52 1.60 16.57 1.13 2.99 0.46 2.53 4.49 4.45 0.07 1.66 2.38 1.74 11.43 0.44 4.03 0.59 3.44 1.21 3.08 0.15 0.90 1.19 0.95 8.23 0.33 3.06 0.27 2.79 2.07 2.66 0.20 1.10 1.67 1.12 9.40 0.55 65.07 58.80 8.16 53.16 78.90 42.45 0.00 75.00 35.30 61.21 25.00 50.00 149.72 62.77 2.96 46.29 71.57 63.44 9.93 59.51 49.53 59.74 10.78 45.61 81.17 48.91 0.00 57.45 55.97 65.11 11.78 43.75 86.70 70.20 7.54 48.33 72.98 57.93 2.90 57.97 88.17 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�������������������� 91.60 86.18 92.51 89.33 93.54 94.86 91.60 92.10 86.89 1.93 62.28 3.83 325.52 2.66 79.33 1.52 128.53 1.66 74.14 1.33 40.70 1.74 141.39 1.95 84.94 1.58 78.66 1.62 34.23 1.90 11.19 9.34 13.00 14.93 70.35 52.63 65.20 0.92 15.10 13.32 15.20 17.46 136.53 75.00 52.16 1.28 8.87 7.41 11.52 13.95 49.23 34.06 41.36 1.03 11.01 10.28 14.82 15.95 72.61 60.43 83.23 1.95 11.78 10.14 12.85 14.53 84.59 66.27 77.23 2.30 11.23 10.46 20.62 21.74 79.99 59.77 74.58 0.89 9.84 9.67 13.62 14.71 80.37 67.02 83.37 0.99 14.43 13.43 31.71 32.74 34.03 27.43 80.55 1.59 11.32 11.13 19.28 20.45 64.12 53.98 84.19 2.54 11.95 9.24 12.74 14.73 63.78 49.35 70.58 Structural Changes New reporters�������������������������������������������� Institutions absorbed by mergers������������� Failed institutions�������������������������������������� 0 117 16 0 0 0 0 0 0 0 17 0 0 79 14 0 5 0 0 0 0 0 1 0 0 10 2 0 5 0 PRIOR FIRST HALVES (The way it was...) Number of institutions������������������������������2012 ��������������������������������������2010 ������������������������������������� 2008 7,245 7,830 8,451 18 21 27 5 4 6 1,542 1,579 1,585 3,637 4,267 4,788 711 744 844 50 84 98 402 293 306 815 776 754 65 62 43 Total assets (in billions)����������������������������2012 ��������������������������������������2010 ������������������������������������� 2008 $14,031.3 13,199.5 13,300.4 $567.7 698.2 450.1 $3,710.9 3,059.4 2,980.5 $220.4 189.0 165.7 $4,161.7 4,357.9 5,362.4 $823.7 794.5 1,376.1 $96.9 97.1 71.3 $64.5 38.1 32.8 $144.4 124.3 98.8 $4,241.1 3,841.2 2,762.6 Return on assets (%)��������������������������������2012 ��������������������������������������2010 ������������������������������������� 2008 0.99 0.59 0.36 3.14 1.14 3.49 0.76 0.87 0.31 1.27 1.00 1.18 0.90 0.20 0.51 0.84 0.72 -0.84 1.81 1.37 1.04 1.18 1.46 2.30 0.92 0.62 1.01 1.00 0.64 0.12 Net charge-offs to loans & leases (%)�����2012 ��������������������������������������2010 ������������������������������������� 2008 1.13 2.78 1.16 4.08 13.44 5.38 1.43 2.40 1.20 0.20 0.53 0.21 0.76 1.89 0.86 0.80 1.19 1.48 1.54 2.39 1.72 0.37 0.55 0.46 0.38 0.44 0.22 0.96 2.09 0.78 Noncurrent assets plus OREO to assets (%)��������������������������2012 ��������������������������������������2010 ������������������������������������� 2008 2.40 3.33 1.41 1.12 2.25 1.67 1.47 2.60 0.86 1.33 1.71 1.06 2.64 3.90 1.69 2.29 3.17 2.56 1.34 1.05 0.80 1.20 0.79 0.27 1.66 1.59 0.79 3.31 3.70 0.90 Equity capital ratio (%)�����������������������������2012 ��������������������������������������2010 ������������������������������������� 2008 11.32 11.11 10.16 14.75 14.20 21.98 9.04 9.27 7.86 11.49 11.33 10.94 11.90 10.99 11.31 10.75 10.02 7.90 9.69 10.64 9.39 14.67 18.38 20.93 11.51 11.36 11.16 12.38 12.29 9.42 * See Table V-A (page 10) for explanations. Note: Blue font identifies data that are also presented in the prior years data at bottom of table. FDIC Quarterly 8 2013, Volume 7, No. 3 Quarterly Banking Profile TABLE IV-A. First Half 2013, All FDIC-Insured Institutions Asset Size Distribution FIRST HALF All Insured (The way it is...) Institutions Number of institutions reporting����������������������������� 6,940 Commercial banks������������������������������������������� 5,980 Savings institutions����������������������������������������� 960 Total assets (in billions)������������������������������������������ $14,409.7 Commercial banks������������������������������������������� 13,350.1 Savings institutions����������������������������������������� 1,059.5 Total deposits (in billions)��������������������������������������� 10,780.5 Commercial banks������������������������������������������� 9,973.5 Savings institutions����������������������������������������� 807.0 Bank net income (in millions)��������������������������������� 82,549 Commercial banks������������������������������������������� 76,462 Savings institutions����������������������������������������� 6,087 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 2,141 4,146 546 107 858 1,898 3,556 438 88 467 243 590 108 19 391 $124.8 $1,256.8 $1,413.9 $11,614.1 $2,859.5 111.1 1,050.6 1,143.0 11,045.4 2,401.0 13.7 206.2 270.9 568.7 458.5 106.1 1,052.7 1,101.8 8,520.0 2,107.0 95.2 886.8 896.8 8,094.6 1,770.5 10.9 165.8 205.0 425.4 336.5 481 5,763 8,386 67,919 14,007 439 4,941 6,873 64,210 12,379 43 822 1,512 3,709 1,628 Atlanta 884 796 88 $2,980.3 2,894.0 86.3 2,280.0 2,215.5 64.5 16,235 15,922 313 Chicago 1,483 1,230 253 $3,344.8 3,230.6 114.2 2,355.4 2,268.6 86.8 18,393 17,698 695 Kansas City 1,686 1,610 76 $3,082.9 3,024.2 58.7 2,361.1 2,313.9 47.3 19,388 19,125 264 San Dallas Francisco 1,468 561 1,369 508 99 53 $867.2 $1,274.9 764.5 1,035.9 102.8 239.0 717.9 959.1 632.9 772.1 85.0 186.9 4,934 9,592 4,135 7,203 799 2,389 3.71 0.44 3.27 1.85 2.83 0.27 1.12 1.67 1.15 10.22 0.78 4.17 0.58 3.59 1.02 3.30 0.14 0.73 0.90 0.76 6.41 0.31 4.21 0.60 3.61 1.13 3.16 0.19 0.87 1.16 0.92 8.35 0.35 4.30 0.54 3.76 1.35 3.06 0.19 1.15 1.57 1.19 10.15 0.42 3.57 0.40 3.16 2.00 2.76 0.29 1.15 1.74 1.17 10.48 0.90 4.00 0.47 3.53 1.59 2.80 0.42 0.95 1.54 0.98 8.04 1.07 3.67 0.38 3.29 1.94 2.99 0.26 1.05 1.58 1.07 8.80 0.76 2.93 0.38 2.55 2.09 2.73 0.11 1.07 1.52 1.11 12.12 0.52 4.00 0.49 3.51 1.77 2.73 0.32 1.25 1.82 1.26 11.59 1.00 3.93 0.42 3.52 1.45 3.03 0.15 1.12 1.50 1.14 10.59 0.35 4.24 0.52 3.72 2.07 2.91 0.36 1.49 2.29 1.53 11.54 0.61 65.07 58.80 8.16 53.16 80.26 76.53 12.38 47.97 85.62 70.67 6.78 54.20 71.53 63.46 3.30 63.37 63.50 56.86 1.87 64.49 73.78 57.90 9.79 50.58 60.02 61.43 13.12 62.33 46.75 62.64 9.37 52.12 59.33 54.79 4.98 49.11 71.19 64.58 5.86 52.45 97.70 52.34 10.16 59.36 88.17 91.50 92.10 91.08 87.35 88.12 86.60 87.27 88.01 91.13 92.63 Condition Ratios (%) Earning assets to total assets��������������������������������� Loss allowance to: Loans and leases��������������������������������������������� Noncurrent loans and leases��������������������������� Noncurrent assets plus other real estate owned to assets�������������������� Equity capital ratio��������������������������������������������������� Core capital (leverage) ratio ����������������������������������� Tier 1 risk-based capital ratio���������������������������������� Total risk-based capital ratio����������������������������������� Net loans and leases to deposits���������������������������� Net loans to total assets ����������������������������������������� Domestic deposits to total assets��������������������������� 1.93 62.28 1.73 85.36 1.70 80.14 1.69 67.28 2.00 60.02 1.85 88.38 1.83 43.20 2.08 63.61 2.20 60.48 1.60 71.69 1.63 103.42 1.90 11.19 9.34 13.00 14.93 70.35 52.63 65.20 1.90 11.77 11.46 19.09 20.20 64.89 55.16 85.00 2.10 10.85 10.54 15.80 16.99 74.08 62.05 83.73 2.13 11.78 10.64 15.07 16.28 81.55 63.54 77.51 1.85 11.15 9.02 12.40 14.51 68.50 50.25 61.49 1.26 12.13 9.83 13.95 15.61 71.15 52.43 64.48 2.77 12.22 9.35 12.81 14.72 74.73 57.17 73.43 1.73 9.16 7.80 11.28 13.58 62.75 44.19 58.24 2.18 10.85 9.27 12.38 14.60 68.77 52.67 56.93 1.87 10.74 9.80 14.36 15.75 72.13 59.71 82.39 1.13 13.13 12.19 16.25 17.59 79.36 59.70 74.16 Structural Changes New reporters�������������������������������������������������� Institutions absorbed by mergers������������������� Failed institutions�������������������������������������������� 0 117 16 0 46 10 0 59 6 0 10 0 0 2 0 0 11 0 0 9 7 0 32 3 0 23 1 0 24 1 0 18 4 PRIOR FIRST HALVES (The way it was…) Number of institutions������������������������������������2012 ��������������������������������������������2010 ������������������������������������������� 2008 7,245 7,830 8,451 2,341 2,746 3,303 4,244 4,424 4,474 553 555 558 107 105 116 898 969 1,034 929 1,064 1,214 1,539 1,619 1,738 1,754 1,852 1,959 1,524 1,643 1,722 601 683 784 Total assets (in billions)����������������������������������2012 ��������������������������������������������2010 ������������������������������������������� 2008 $14,031.3 13,199.5 13,300.4 $135.4 154.7 177.0 $1,274.7 1,324.8 1,333.3 $1,425.8 1,428.3 1,464.5 $11,195.4 10,291.8 10,325.6 $2,877.3 2,672.0 2,478.4 $2,934.7 2,987.4 3,397.0 $3,193.0 2,865.9 2,937.6 $3,000.2 1,656.3 989.0 $831.6 787.4 763.8 $1,194.5 2,230.6 2,734.6 Return on assets (%)��������������������������������������2012 ��������������������������������������������2010 ������������������������������������������� 2008 0.99 0.59 0.36 0.70 0.54 0.67 0.81 0.33 0.66 1.24 0.22 0.50 0.99 0.68 0.30 0.91 0.68 0.90 0.78 0.22 0.24 0.88 0.64 0.43 1.05 0.69 1.15 1.08 0.71 0.76 1.85 0.82 -0.41 Net charge-offs to loans & leases (%)�����������2012 ��������������������������������������������2010 ������������������������������������������� 2008 1.13 2.78 1.16 0.39 0.66 0.25 0.62 0.99 0.38 0.76 1.78 0.85 1.27 3.28 1.35 1.35 4.10 1.23 1.19 2.63 0.95 0.87 2.12 1.06 1.39 3.13 1.24 0.56 1.24 0.55 0.90 2.45 1.59 Noncurrent assets plus OREO to assets (%)��������������������������������2012 ��������������������������������������������2010 ������������������������������������������� 2008 2.40 3.33 1.41 2.21 2.38 1.20 2.73 3.40 1.57 2.85 3.63 1.77 2.31 3.29 1.34 1.58 2.23 0.96 3.62 4.03 1.43 2.18 3.22 1.26 2.56 4.62 1.69 2.31 3.18 1.35 1.65 2.94 1.86 Equity capital ratio (%)�����������������������������������2012 ��������������������������������������������2010 ������������������������������������������� 2008 11.32 11.11 10.16 11.97 12.19 13.35 10.90 10.21 10.27 11.92 11.06 10.96 11.29 11.22 9.98 12.34 12.29 12.04 12.21 11.43 10.06 9.02 9.15 9.20 11.04 11.55 9.73 11.03 10.57 9.86 13.78 11.65 9.84 * See Table V-A (page 11) for explanations. Note: Blue font identifies data that are also presented in the prior years data at bottom of table. FDIC Quarterly 9 2013, Volume 7, No. 3 TABLE V-A. Loan Performance, All FDIC-Insured Institutions Asset Concentration Groups* June 30, 2013 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������������������������������������������������������ 1.27 0.81 0.60 0.38 0.77 2.03 0.31 1.33 1.19 1.47 0.19 0.98 0.22 0.00 0.00 0.00 2.36 0.16 0.91 1.15 1.14 1.36 0.16 1.12 1.80 2.62 0.55 0.24 1.09 2.80 0.30 1.40 1.29 1.58 0.15 1.04 0.79 0.96 0.66 0.77 0.60 1.49 1.00 1.56 1.06 1.61 0.39 0.76 0.86 0.72 0.57 0.37 0.63 1.43 0.30 1.23 1.21 1.23 0.20 0.72 1.11 1.03 0.50 0.45 0.70 1.24 0.63 1.16 1.83 1.08 0.12 1.05 0.81 0.24 1.19 0.34 0.60 0.96 0.81 0.93 0.63 1.07 0.11 0.89 1.52 1.44 1.19 1.49 0.65 1.98 1.21 1.50 1.47 1.51 0.45 1.42 1.39 1.12 1.05 0.54 0.78 1.70 1.16 2.29 0.96 2.34 0.49 1.38 1.83 0.77 0.66 0.56 0.76 2.70 0.25 1.63 1.43 1.68 0.20 1.26 Percent of Loans Noncurrent** All real estate loans���������������������������������������������������������� Construction and development.................................. Nonfarm nonresidential��������������������������������������������� Multifamily residential real estate����������������������������� Home equity loans���������������������������������������������������� Other 1-4 family residential��������������������������������������� Commercial and industrial loans������������������������������������� Loans to individuals���������������������������������������������������������� Credit card loans������������������������������������������������������� Other loans to individuals����������������������������������������� All other loans and leases (including farm)��������������������� Total loans and leases������������������������������������������������������ 5.22 5.95 2.40 1.13 2.83 8.27 0.74 1.05 1.23 0.86 0.34 3.09 1.16 0.00 7.87 0.00 0.00 0.92 1.08 1.19 1.20 1.09 0.23 1.18 7.77 2.32 1.63 0.62 4.19 13.00 0.67 1.24 1.27 1.20 0.31 3.36 1.50 3.80 2.21 1.24 0.96 1.38 1.38 0.59 0.23 0.62 0.39 1.18 3.12 6.25 2.35 1.24 1.56 4.26 0.86 0.90 1.47 0.81 0.48 2.24 3.50 5.87 2.23 1.04 2.19 3.83 1.82 0.77 1.93 0.64 0.23 3.27 2.61 2.93 3.40 1.03 3.10 2.16 1.41 0.77 1.05 0.63 0.12 1.23 2.84 6.30 3.12 1.63 1.47 2.02 1.49 0.63 0.93 0.61 0.73 2.29 2.25 5.45 2.71 2.40 0.93 1.95 1.82 1.45 0.72 1.47 0.43 2.01 8.67 5.63 2.72 1.29 3.46 12.86 0.50 0.87 1.25 0.79 0.25 4.74 Percent of Loans Charged-Off (net, YTD) All real estate loans���������������������������������������������������������� Construction and development��������������������������������� Nonfarm nonresidential��������������������������������������������� Multifamily residential real estate����������������������������� Home equity loans���������������������������������������������������� Other 1-4 family residential��������������������������������������� Commercial and industrial loans������������������������������������� Loans to individuals���������������������������������������������������������� Credit card loans������������������������������������������������������� Other loans to individuals����������������������������������������� All other loans and leases (including farm)��������������������� Total loans and leases������������������������������������������������������ 0.61 0.81 0.32 0.11 1.26 0.66 0.35 2.27 3.65 0.81 0.08 0.78 0.18 0.00 0.00 0.00 -0.35 0.23 3.30 3.49 3.54 2.38 0.00 3.46 1.13 4.06 0.13 0.01 1.27 1.60 0.27 3.13 4.24 1.26 0.06 1.12 0.12 0.48 0.14 0.08 0.21 0.17 0.23 0.31 0.62 0.28 0.00 0.12 0.51 0.82 0.36 0.16 0.84 0.60 0.36 0.99 3.83 0.55 0.16 0.49 0.42 0.47 0.40 0.10 1.43 0.36 0.37 1.26 5.02 0.85 0.14 0.42 1.19 2.26 0.33 0.26 1.81 0.76 1.20 1.11 2.30 0.51 0.07 1.13 0.46 1.48 0.59 0.41 0.15 0.20 0.27 0.46 2.04 0.36 0.60 0.44 0.28 0.90 0.29 0.13 0.44 0.25 0.50 0.57 2.03 0.52 0.00 0.33 0.64 0.37 0.19 0.04 1.63 0.51 0.17 1.23 3.14 0.81 0.02 0.55 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)�������������� $4,046.9 202.5 1,083.3 244.2 528.7 1,855.2 1,563.2 1,310.3 670.3 640.0 814.1 7,734.5 $0.2 0.0 0.0 0.0 0.0 0.2 35.3 421.9 405.7 16.2 3.1 460.5 $476.5 5.6 35.9 44.6 96.0 240.3 279.1 247.6 155.2 92.4 273.0 1,276.1 $86.2 4.2 24.0 2.3 1.6 22.2 18.3 6.3 0.5 5.7 34.2 144.9 $1,935.0 144.6 764.7 150.6 192.7 649.9 719.1 249.6 32.8 216.8 214.2 3,118.0 $309.8 6.0 29.0 11.9 18.3 243.2 9.6 7.0 0.7 6.3 14.0 340.5 $17.5 0.3 1.0 0.2 7.2 8.7 0.5 52.8 17.5 35.3 0.1 71.0 $12.6 1.0 4.5 0.3 0.4 5.6 2.3 2.1 0.1 1.9 1.0 17.9 $59.2 3.1 14.8 1.5 2.4 33.1 6.7 6.9 0.3 6.6 6.1 78.9 $1,150.0 37.6 209.4 32.8 209.9 652.0 492.3 316.1 57.5 258.6 268.4 2,226.8 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������������������������������������������������������ 32,615.3 10,063.6 8,169.2 927.7 6,982.2 354.8 6,053.4 0.2 0.0 0.0 0.0 0.2 0.0 0.0 2,676.5 3.2 33.4 8.0 708.9 0.0 1,862.0 711.5 253.2 268.6 14.9 118.2 55.1 1.4 20,052.7 7,982.8 6,174.1 709.5 3,743.1 258.9 1,183.1 1,734.9 374.7 237.5 35.7 623.9 3.4 459.6 51.3 9.3 24.5 0.5 16.0 1.0 0.0 221.5 94.6 78.9 2.4 42.8 2.9 0.0 681.5 202.8 212.7 19.7 228.0 17.8 0.5 6,485.2 1,143.1 1,139.5 137.0 1,501.2 15.6 2,546.8 *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 2013, Volume 7, No. 3 Quarterly Banking Profile TABLE V-A. Loan Performance, All FDIC-Insured Institutions Asset Size Distribution June 30, 2013 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��������������������������������������������� 1.27 0.81 0.60 0.38 0.77 2.03 0.31 1.33 1.19 1.47 0.19 0.98 1.32 1.08 0.99 0.54 0.92 1.89 1.29 2.02 1.87 2.02 0.43 1.26 0.89 0.88 0.69 0.53 0.67 1.26 0.81 1.67 1.43 1.68 0.38 0.89 0.83 0.74 0.59 0.41 0.63 1.31 0.44 1.47 1.75 1.36 0.25 0.79 1.47 0.80 0.55 0.34 0.79 2.27 0.25 1.31 1.17 1.46 0.18 1.01 0.93 0.82 0.64 0.28 0.51 1.43 0.43 1.15 1.02 1.49 0.14 0.84 1.45 0.82 0.61 0.55 0.91 2.12 0.24 1.96 1.77 2.07 0.15 1.13 1.20 0.69 0.67 0.33 0.92 1.84 0.36 1.21 1.01 1.28 0.27 0.89 1.81 1.07 0.57 0.65 0.74 3.00 0.23 1.42 1.33 1.55 0.16 1.20 1.05 0.70 0.59 0.69 0.59 1.73 0.46 0.97 0.61 1.15 0.25 0.87 0.75 0.71 0.43 0.30 0.41 1.21 0.29 0.94 1.11 0.78 0.32 0.67 Percent of Loans Noncurrent** All real estate loans������������������������������������������������� Construction and development������������������������ Nonfarm nonresidential������������������������������������ Multifamily residential real estate�������������������� Home equity loans������������������������������������������� Other 1-4 family residential������������������������������ Commercial and industrial loans���������������������������� Loans to individuals������������������������������������������������� Credit card loans���������������������������������������������� Other loans to individuals�������������������������������� All other loans and leases (including farm)������������ Total loans and leases��������������������������������������������� 5.22 5.95 2.40 1.13 2.83 8.27 0.74 1.05 1.23 0.86 0.34 3.09 2.36 5.23 3.00 2.65 1.32 2.13 2.19 0.88 0.85 0.88 0.48 2.03 2.37 6.12 2.34 1.65 1.19 2.01 1.72 0.86 1.05 0.85 0.58 2.12 3.08 6.49 2.46 1.29 1.32 3.92 1.32 0.90 1.37 0.72 0.54 2.51 6.43 5.62 2.37 0.96 3.08 10.04 0.58 1.06 1.22 0.87 0.31 3.33 3.24 7.87 2.54 0.85 1.88 4.17 0.96 1.06 1.11 0.92 0.20 2.09 7.25 6.92 2.49 1.53 3.34 10.94 0.59 1.02 1.52 0.74 0.22 4.24 5.69 5.57 2.61 1.26 3.24 9.41 0.71 0.96 1.23 0.87 0.28 3.27 6.54 5.02 2.41 1.37 3.01 10.65 0.73 1.33 1.30 1.36 0.49 3.64 3.04 3.89 2.27 2.07 2.09 3.94 0.97 0.65 1.02 0.45 0.53 2.23 2.45 5.93 1.82 0.73 1.17 3.28 0.68 0.82 1.22 0.44 0.57 1.58 Percent of Loans Charged-Off (net, YTD) All real estate loans������������������������������������������������� Construction and development������������������������ Nonfarm nonresidential������������������������������������ Multifamily residential real estate�������������������� Home equity loans������������������������������������������� Other 1-4 family residential������������������������������ Commercial and industrial loans���������������������������� Loans to individuals������������������������������������������������� Credit card loans���������������������������������������������� Other loans to individuals�������������������������������� All other loans and leases (including farm)������������ Total loans and leases��������������������������������������������� 0.61 0.81 0.32 0.11 1.26 0.66 0.35 2.27 3.65 0.81 0.08 0.78 0.30 0.71 0.42 0.18 0.27 0.26 0.50 0.41 1.99 0.40 0.00 0.31 0.31 0.82 0.28 0.16 0.47 0.28 0.52 0.75 3.87 0.55 0.15 0.35 0.35 0.61 0.30 0.22 0.57 0.35 0.39 1.40 3.60 0.54 0.16 0.42 0.74 0.91 0.34 0.06 1.38 0.77 0.33 2.37 3.65 0.85 0.07 0.90 0.54 0.97 0.42 0.05 0.75 0.63 0.62 2.82 3.43 1.08 0.07 1.07 0.75 1.69 0.47 0.10 1.78 0.54 0.31 2.00 4.05 0.80 0.06 0.76 0.57 0.75 0.35 0.20 1.04 0.57 0.27 1.28 3.43 0.59 0.01 0.52 0.85 0.47 0.13 0.15 1.55 1.16 0.23 3.01 4.33 1.24 0.12 1.00 0.29 0.27 0.24 0.28 0.98 0.26 0.27 1.09 2.14 0.53 0.20 0.35 0.20 -0.23 0.13 0.01 0.41 0.31 0.49 1.70 3.09 0.37 0.12 0.61 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)����� $4,046.9 202.5 1,083.3 244.2 528.7 1,855.2 1,563.2 1,310.3 670.3 640.0 814.1 7,734.5 $48.8 2.8 13.9 1.5 1.3 21.7 8.7 4.5 0.0 4.5 8.1 70.1 $610.9 49.3 244.9 31.0 28.9 217.8 104.5 34.8 2.1 32.7 43.5 793.6 $655.7 49.4 270.0 53.9 43.8 223.6 144.8 68.7 19.2 49.5 45.1 914.4 $2,731.6 101.0 554.6 157.8 454.6 1,392.1 1,305.2 1,202.3 648.9 553.4 717.3 5,956.5 $790.2 37.6 246.5 80.5 91.6 330.3 231.1 372.3 274.3 98.0 134.4 1,528.0 $946.3 48.2 225.3 29.6 139.7 495.1 387.4 235.0 84.7 150.3 167.0 1,735.7 $785.2 31.6 184.2 68.5 135.1 347.2 327.3 191.1 46.0 145.0 205.8 1,509.5 $811.2 31.0 161.8 22.9 114.7 400.7 335.3 281.8 159.6 122.2 232.5 1,660.9 $334.9 37.9 126.3 10.3 19.3 128.3 107.7 49.7 16.9 32.8 34.0 526.4 $379.1 16.3 139.3 32.4 28.3 153.7 174.3 180.4 88.8 91.6 40.3 774.1 Memo: Other Real Estate Owned (in millions) All other real estate owned�������������������������������������� Construction and development������������������������ Nonfarm nonresidential������������������������������������ Multifamily residential real estate�������������������� 1-4 family residential���������������������������������������� Farmland����������������������������������������������������������� GNMA properties��������������������������������������������� 32,615.3 10,063.6 8,169.2 927.7 6,982.2 354.8 6,053.4 944.3 305.0 323.4 47.3 247.6 20.7 0.3 9,484.8 4,255.9 3,192.7 253.4 1,603.9 174.3 4.5 7,024.0 3,081.2 2,229.5 218.2 1,345.2 116.8 33.1 15,162.3 2,421.5 2,423.7 408.8 3,785.5 43.0 6,015.5 3,794.6 874.1 1,071.6 215.6 1,254.9 17.3 360.0 8,371.1 2,827.7 1,690.6 127.6 1,808.5 76.4 1,840.3 7,948.1 1,448.0 1,755.9 205.3 1,830.5 63.8 2,644.8 6,009.8 2,013.6 1,584.9 179.3 969.6 63.1 1,136.2 4,344.3 1,974.0 1,379.7 125.7 704.4 104.7 55.7 2,147.4 926.2 686.7 74.1 414.4 29.4 16.5 * 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 2013, Volume 7, No. 3 Table VI-A. Derivatives, All FDIC-Insured Call Report Filers Asset Size Distribution 2nd Quarter 2013 1st Quarter 2013 4th Quarter 2012 3rd Quarter 2012 2nd Quarter 2012 (dollar figures in millions; notional amounts unless otherwise indicated) ALL DERIVATIVE HOLDERS Number of institutions reporting derivatives����������������� 1,408 1,398 1,363 1,365 1,326 Total assets of institutions reporting derivatives���������� $12,693,494 $12,688,491 $12,662,756 $12,420,432 $12,211,090 Total deposits of institutions reporting derivatives������� 9,409,187 9,427,223 9,383,383 9,074,347 8,883,459 Total derivatives������������������������������������������������������������� 236,526,457 232,672,271 224,081,074 229,350,281 225,035,729 % Change Less $100 $1 Billion 12Q2Than $100 Million to to $10 13Q2 Million $1 Billion Billion Greater Than $10 Billion 6.2 4.0 5.9 5.1 80 $5,769 4,821 285 874 358 96 $355,659 $1,026,783 $11,305,283 293,859 812,379 8,298,128 23,400 93,037 236,409,735 Derivative Contracts by Underlying Risk Exposure Interest rate�������������������������������������������������������������������� 188,303,466 184,950,557 178,936,077 181,462,870 178,823,511 Foreign exchange*�������������������������������������������������������� 31,485,720 30,329,231 28,600,020 30,098,652 29,088,318 Equity����������������������������������������������������������������������������� 2,079,940 2,041,453 1,952,110 2,208,326 2,006,866 Commodity & other (excluding credit derivatives)�������� 1,275,103 1,449,766 1,402,392 1,582,317 1,492,694 Credit������������������������������������������������������������������������������ 13,382,229 13,901,264 13,190,476 13,998,117 13,624,340 Total�������������������������������������������������������������������������������� 236,526,457 232,672,271 224,081,074 229,350,281 225,035,729 5.3 8.2 3.6 -14.6 -1.8 5.1 284 0 0 1 0 285 23,111 2 79 19 188 23,400 82,802 188,197,268 8,398 31,477,319 651 2,079,209 845 1,274,238 340 13,381,700 93,037 236,409,735 Derivative Contracts by Transaction Type Swaps���������������������������������������������������������������������������� 141,710,059 138,360,520 134,927,013 135,584,411 134,469,463 Futures & forwards�������������������������������������������������������� 43,358,499 45,599,448 43,442,591 44,034,379 40,616,309 Purchased options��������������������������������������������������������� 17,640,943 16,632,836 15,629,868 16,596,691 16,910,332 Written options��������������������������������������������������������������� 17,761,211 17,145,285 15,964,285 16,818,793 16,721,541 Total�������������������������������������������������������������������������������� 220,470,712 217,738,088 209,963,757 213,034,275 208,717,646 5.4 6.8 4.3 6.2 5.6 29 127 24 105 285 6,803 8,405 679 7,323 23,211 45,682 141,657,545 27,350 43,322,617 4,219 17,636,020 15,167 17,738,615 92,419 220,354,797 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����������������������������������� 61,423 -5,177 1,396 1,319 -8,729 13,886 67,452 -6,644 -2,588 -2,530 -20,833 25,372 96,553 -5,822 -2,029 -2,467 -40,693 42,352 98,516 -13,618 -264 -2,590 -84,508 87,900 92,904 -3,883 3,453 -1,538 -179,196 185,191 -33.9 N/M -59.6 N/M N/M -92.5 0 0 0 0 0 0 386 0 2 1 0 4 -40 2 8 38 -1 -23 61,077 -5,179 1,387 1,279 -8,728 13,906 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 88,194,564 30,699,973 20,837,681 19,249,542 2,734,201 1,455,297 660,941 271,218 80,891 424,514 163,094 15,300 86,868,881 29,343,805 20,313,212 18,647,264 2,738,365 1,389,930 648,510 255,625 74,515 480,077 179,413 21,538 83,071,641 30,498,385 21,448,437 18,347,400 2,868,426 1,442,901 627,310 262,230 81,851 391,393 242,068 28,823 84,190,393 30,961,899 21,990,686 18,781,964 2,894,870 1,453,914 638,274 290,474 85,427 460,565 247,795 25,053 82,514,198 30,337,240 21,795,550 18,604,099 2,926,354 1,422,938 597,782 262,864 81,390 442,919 205,411 24,628 6.9 1.2 -4.4 3.5 -6.6 2.3 10.6 3.2 -0.6 -4.2 -20.6 -37.9 82 30 47 0 0 0 0 0 0 0 0 0 7,436 2,936 3,782 1 0 0 3 14 0 12 0 0 24,520 22,790 18,120 6,573 115 0 177 113 13 268 52 0 88,162,526 30,674,217 20,815,732 19,242,967 2,734,086 1,455,297 660,761 271,091 80,878 424,234 163,043 15,300 30.5 62.8 32.6 62.1 35.9 62.8 37.2 66.4 38.9 66.1 0.1 0.1 0.4 0.2 1.0 0.5 34.7 71.8 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 (%)�������������������������������������������������� 93.3 94.7 98.7 103.6 105.1 0.2 0.6 1.5 106.5 Credit losses on derivatives***���������������������������������� 145.0 84.3 230.2 156.8 130.7 10.9 0.0 0.6 2.0 142.4 HELD FOR TRADING Number of institutions reporting derivatives����������������� Total assets of institutions reporting derivatives���������� Total deposits of institutions reporting derivatives������� 246 10,176,122 7,534,972 242 10,139,183 7,539,122 247 10,122,363 7,513,330 248 9,955,521 7,270,076 234 9,802,662 7,116,728 5.1 3.8 5.9 12 944 772 95 43,502 35,854 77 265,028 207,929 62 9,866,648 7,290,417 Derivative Contracts by Underlying Risk Exposure Interest rate�������������������������������������������������������������������� 184,310,115 181,115,575 175,185,511 177,553,778 174,789,894 Foreign exchange���������������������������������������������������������� 28,055,674 28,425,810 26,892,025 26,859,133 25,615,932 Equity����������������������������������������������������������������������������� 2,065,640 2,028,256 1,939,747 2,194,867 1,993,028 Commodity & other�������������������������������������������������������� 1,264,349 1,433,289 1,386,727 1,559,924 1,475,527 Total�������������������������������������������������������������������������������� 215,695,777 213,002,931 205,404,010 208,167,702 203,874,380 5.4 9.5 3.6 -14.3 5.8 80 0 0 1 80 3,008 0 0 0 3,009 -3.9 56.9 -19.1 N/M 236.6 0 0 0 0 0 0 0 0 0 0 25 2 1 0 28 2,737 3,137 921 451 7,247 0.0 0.0 -0.1 -0.4 0.8 4.1 6.2 27.3 17,442 184,289,585 3,002 28,052,671 256 2,065,384 57 1,264,291 20,756 215,671,932 Trading Revenues: Cash & Derivative Instruments Interest rate�������������������������������������������������������������������� Foreign exchange���������������������������������������������������������� Equity����������������������������������������������������������������������������� Commodity & other (including credit derivatives)�������� Total trading revenues��������������������������������������������������� 2,762 3,139 922 452 7,275 2,216 3,190 830 1,252 7,488 4,155 759 136 -683 4,367 4,458 1,020 507 -892 5,093 2,873 2,001 1,140 -3,853 2,161 Share of Revenue Trading revenues to gross revenues (%)���������������������� Trading revenues to net operating revenues (%)���������� 6.0 26.5 6.2 29.0 3.7 19.9 4.3 22.4 1.9 11.3 HELD FOR PURPOSES OTHER THAN TRADING Number of institutions reporting derivatives����������������� Total assets of institutions reporting derivatives���������� Total deposits of institutions reporting derivatives������� 1,264 12,299,446 9,100,460 1,260 12,354,327 9,166,967 1,219 12,318,096 9,111,173 1,213 11,985,728 8,728,197 1,185 11,791,598 8,548,194 6.7 4.3 6.5 69 4,896 4,111 789 318,011 262,681 319 926,403 731,538 87 11,050,136 8,102,129 Derivative Contracts by Underlying Risk Exposure Interest rate�������������������������������������������������������������������� Foreign exchange���������������������������������������������������������� Equity����������������������������������������������������������������������������� Commodity & other�������������������������������������������������������� Total notional amount���������������������������������������������������� 3,993,351 756,530 14,300 10,754 4,774,935 3,834,982 870,503 13,197 16,477 4,735,157 3,750,566 781,154 12,363 15,664 4,559,747 3,909,092 921,630 13,458 22,393 4,866,573 4,033,617 778,644 13,838 17,167 4,843,266 -1.0 -2.8 3.3 -37.4 -1.4 204 0 0 0 205 20,103 2 79 18 20,202 65,361 5,118 395 788 71,662 3,907,683 751,410 13,825 9,947 4,682,866 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 2013, Volume 7, 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 2013 1st Quarter 2013 4th Quarter 2012 3rd Quarter 2012 2nd Quarter 2012 % Change Less Than $100 $1 Billion Greater 12Q2$100 Million to to $10 Than $10 13Q2 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������������������������������������������������������������������������������������������ 90 98 159 168 170 -47.1 3 35 19 33 $634,887 46 17,945 3,860 4,938 4,467 99,224 765,368 $636,305 47 18,832 4,505 5,155 4,025 142,783 811,651 $641,236 49 18,942 4,684 5,083 1,839 199,968 871,800 $754,730 51 18,423 4,311 5,226 3,373 204,902 991,017 $750,582 52 17,227 4,520 5,203 1,713 209,647 988,944 -15.4 -11.5 4.2 -14.6 -5.1 160.8 -52.7 -22.6 $7 0 0 0 0 0 0 7 $3,628 1 320 0 3 10 3,235 7,198 $13,115 0 0 0 0 1 5,287 18,403 $618,136 45 17,625 3,860 4,935 4,456 90,703 739,760 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��� 3,086 0 557 0 168 33 1,861 5,705 121 3,254 0 588 0 185 41 2,438 6,506 121 3,368 0 605 0 200 7 2,280 6,460 130 3,581 0 666 0 206 14 2,317 6,785 125 3,696 0 611 1 209 3 2,277 6,798 127 -16.5 0.0 -8.8 -100.0 -19.6 1,000.0 -18.3 -16.1 -4.7 0 0 0 0 0 0 0 0 0 62 0 111 0 0 0 2 174 0 39 0 0 0 0 0 0 39 0 2,985 0 446 0 168 33 1,859 5,491 121 4.3 9.5 0.8 0.4 6.0 0.0 1.2 3.8 4.0 11.5 0.7 0.3 4.9 0.0 1.2 3.4 4.5 12.5 0.8 0.4 6.2 0.0 0.9 3.6 4.1 12.2 0.8 0.4 5.5 0.0 1.1 3.4 3.7 13.3 0.8 0.4 4.6 0.2 1.3 3.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.1 0.0 1.4 0.0 0.0 0.0 1.0 1.1 8.3 0.0 0.0 0.0 0.0 0.0 0.2 5.9 4.2 9.8 0.8 0.4 6.0 0.0 1.3 3.7 4.2 32.3 0.4 0.0 6.3 0.0 10.2 4.9 4.7 31.7 0.3 0.0 6.8 0.0 8.7 5.2 5.0 29.6 0.3 0.0 6.9 0.1 7.8 5.5 4.8 29.1 0.3 0.0 5.6 0.0 8.0 5.3 5.5 26.1 0.3 0.0 5.0 0.1 6.9 5.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.1 0.0 1.5 0.0 0.0 6.8 0.8 1.0 7.0 0.0 0.0 0.0 0.0 88.9 1.3 5.3 4.2 33.4 0.4 0.0 6.3 0.0 11.0 4.9 0.5 0.2 1.3 0.1 0.4 0.0 0.5 0.5 0.3 0.3 0.6 0.0 0.2 0.0 0.1 0.3 1.5 1.6 2.5 0.1 1.0 0.0 0.5 1.3 1.0 1.3 2.0 0.1 0.7 0.0 0.3 0.9 0.7 1.2 1.5 0.0 0.5 0.0 0.2 0.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 2.7 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 0.2 1.3 0.1 0.4 0.0 0.5 0.6 0 13,076 0 0 11,868 0 0 14,514 0 0 13,291 0 0 14,964 3 0.0 -12.6 -100.0 0 0 0 0 279 0 0 0 0 0 12,797 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0 0.0 0.0 0 0 0 0 0 0 0 0 0 0 0 0 Securitized Loans, Leases, and Other Assets 30-89 Days Past Due (%) 1-4 family residential loans�������������������������������������������������������������������������������� Home equity loans��������������������������������������������������������������������������������������������� Credit card receivables������������������������������������������������������������������������������������� Auto loans���������������������������������������������������������������������������������������������������������� Other consumer loans��������������������������������������������������������������������������������������� Commercial and industrial loans����������������������������������������������������������������������� All other loans, leases, and other assets���������������������������������������������������������� Total loans, leases, and other assets����������������������������������������������������������������������� Securitized Loans, Leases, and Other Assets 90 Days or More Past Due (%) 1-4 family residential loans�������������������������������������������������������������������������������� Home equity loans��������������������������������������������������������������������������������������������� Credit card receivables������������������������������������������������������������������������������������� Auto loans���������������������������������������������������������������������������������������������������������� Other consumer loans��������������������������������������������������������������������������������������� Commercial and industrial loans����������������������������������������������������������������������� All other loans, leases, and other assets���������������������������������������������������������� Total loans, leases, and other assets����������������������������������������������������������������������� Securitized Loans, Leases, and Other Assets Charged-off (net, YTD, annualized, %) 1-4 family residential loans�������������������������������������������������������������������������������� Home equity loans��������������������������������������������������������������������������������������������� Credit card receivables������������������������������������������������������������������������������������� Auto loans���������������������������������������������������������������������������������������������������������� Other consumer loans��������������������������������������������������������������������������������������� Commercial and industrial loans����������������������������������������������������������������������� All other loans, leases, and other assets���������������������������������������������������������� Total loans, leases, and other assets����������������������������������������������������������������������� Seller's Interests in Institution's Own Securitizations - Carried as Loans Home equity loans��������������������������������������������������������������������������������������������� Credit card receivables������������������������������������������������������������������������������������� Commercial and industrial loans����������������������������������������������������������������������� Seller's Interests in Institution's Own Securitizations - Carried as Securities Home equity loans��������������������������������������������������������������������������������������������� Credit card receivables������������������������������������������������������������������������������������� Commercial and industrial loans����������������������������������������������������������������������� Assets Sold with Recourse and Not Securitized Number of institutions reporting asset sales������������������������������������������������������������ Outstanding Principal Balance by Asset Type 1-4 family residential loans�������������������������������������������������������������������������������� Home equity, credit card receivables, auto, and other consumer loans��������� Commercial and industrial loans����������������������������������������������������������������������� All other loans, leases, and other assets���������������������������������������������������������� Total sold and not securitized����������������������������������������������������������������������������������� 1,062 1,058 1,024 1,006 1,001 6.1 161 695 159 47 49,462 829 71 63,988 114,350 51,484 852 74 64,769 117,179 52,271 857 76 64,999 118,203 55,376 863 46 63,170 119,456 57,646 883 70 62,899 121,498 -14.2 -6.1 1.4 1.7 -5.9 1,595 0 1 2 1,598 14,329 2 19 50 14,400 9,737 23 44 430 10,235 23,801 804 7 63,506 88,117 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������������������������������������������������������������������������������������������������� 12,169 151 34 15,360 27,713 13,023 167 36 15,216 28,441 13,325 173 42 15,043 28,582 15,884 164 38 14,438 30,523 17,043 168 40 14,277 31,529 -28.6 -10.1 -15.0 7.6 -12.1 105 0 1 2 108 3,076 2 19 22 3,119 4,198 5 13 63 4,279 4,790 144 1 15,273 20,207 Support for Securitization Facilities Sponsored by Other Institutions Number of institutions reporting securitization facilities sponsored by others������� Total credit exposure������������������������������������������������������������������������������������������������� 158 45,095 167 48,946 166 57,798 172 61,957 176 66,948 -10.2 -32.6 13 14 94 218 32 358 19 44,506 Total unused liquidity commitments������������������������������������������������������������������������� 828 673 779 776 1,275 -35.1 0 0 0 828 5,184,975 5,349,521 5,500,344 Other Assets serviced for others*��������������������������������������������������������������������������������������� 4,872,698 Asset-backed commercial paper conduits Credit exposure to conduits sponsored by institutions and others������������������ 8,267 Unused liquidity commitments to conduits sponsored by institutions 51,893 and others�������������������������������������������������������������������������������������������������� Net servicing income (for the quarter)���������������������������������������������������������������������� 5,174 Net securitization income (for the quarter)��������������������������������������������������������������� 274 Total credit exposure to Tier 1 capital (%)**������������������������������������������������������������� 6.0 5,601,387 -13.0 5,949 138,960 7,875 8,372 8,009 12,801 -35.4 5 0 222,416 4,505,373 3 8,259 63,355 68,619 70,886 73,694 -29.6 0 0 1,122 50,772 4,225 394 6.5 4,497 430 7.3 2,802 509 7.8 1,985 246 8.4 160.7 11.4 8 0 0.8 193 16 2.7 216 9 3.2 4,757 249 7.0 *The amount of financial assets serviced for others, other than closed-end 1-4 family residential mortgages, is reported when these assets are greater than $10 million. **Total credit exposure includes the sum of the three line items titled “Total credit exposure” reported above. FDIC Quarterly 13 2013, Volume 7, No. 3 Quarterly Banking Profile INSURANCE FUND INDICATORS Fund Balance Increases to $37.9 Billion ■ DIF Reserve Ratio Rises 4 Basis Points to 0.63 Percent ■ Twelve Institutions Fail During Second Quarter ■ Total assets of the 6,940 FDIC-insured institutions were nearly unchanged, decreasing by only 0.1 percent ($14.8 billion) from the previous quarter. 1 Total deposits decreased by 0.4 percent ($38.7 billion). Domestic office deposits decreased by 0.3 percent ($31.0 billion), while foreign office deposits decreased by 0.6 percent ($7.7 billion). Within the category of domestic deposits, noninterest-bearing deposits rose by 0.5 percent ($13.4 billion), interest-bearing checking and savings accounts declined by 0.6 percent ($32.7 billion), and domestic time deposits fell 0.7 percent ($11.8 billion). by only $57 billion, or less than 4 percent. Table 1 shows the distribution of noninterest-bearing transaction accounts larger than $250,000 by institution asset size. Total estimated insured deposits decreased by 0.8 percent in the second quarter of 2013.4 For institutions existing at the start and the end of the most recent quarter, insured deposits increased during the quarter at 2,424 institutions (35 percent), decreased at 4,481 institutions (65 percent), and remained unchanged at 31 institutions. Excluding those deposit amounts that received temporary insurance coverage through the end of 2012, estimated insured deposits rose by 4.4 percent over the 12 months ending June 30, 2013. Over the past four quarters, total domestic deposits grew by 5.4 percent ($481.8 billion), with interest-bearing deposits increasing by 4.9 percent ($322.4 billion) and noninterest-bearing deposits rising by 6.9 percent ($159.4 billion). Foreign deposits fell by 1.7 percent, other borrowed money increased by 1.7 percent, and securities sold under agreements to repurchase declined by 15.6 percent over the same four-quarter period.2 The Deposit Insurance Fund (DIF) balance rose by $2.1 billion during the second quarter to $37.9 billion. Assessment income of $2.5 billion was primarily responsible for the increase. Investment income and other miscellaneous income of $105 million, and a negative provision for insurance losses of $33 million, also added to the fund balance. Operating expenses of $439 million and unrealized losses on available-for-sale securities of $96 million reduced the fund balance. Twelve FDICinsured institutions with combined assets of $1.4 billion failed during the second quarter, at an estimated cost to the DIF of $270 million. The DIF’s reserve ratio was 0.63 percent on June 30, up from 0.59 percent at March 31. Insured institutions had $2.5 trillion in domestic noninterest-bearing deposits on June 30, 2013, 69 percent ($1.7 trillion) of which was in noninterest-bearing transaction accounts with balances larger than $250,000. Of the $1.7 trillion, $1.5 trillion exceeded the $250,000 insurance limit. December 31 of last year was the last day of temporary unlimited insurance coverage provided to noninterest-bearing transaction deposits as part of the Dodd-Frank Act.3 The expiration of the unlimited coverage appeared to have only limited impact on deposit levels during the first six months of 2013. Over these six months, the aggregate amount exceeding the $250,000 limit in noninterest-bearing transaction deposits declined To ensure that the DIF had sufficient liquidity to handle a high volume of failures, the Board issued a rule in 2009 that required insured depository institutions to prepay 13 quarters of estimated risk-based assessments. The $45.7 billion in assessments prepaid on December 30, 2009, resolved the FDIC’s immediate liquidity needs. At the end of June, the FDIC refunded $5.85 billion in remaining prepaid assessments to more than 5,600 institutions. Throughout the insurance fund discussion, FDIC-insured institutions include insured commercial banks and savings associations and, except where noted, exclude insured branches of foreign banks. 2 Other borrowed money includes FHLB advances, term federal funds, mortgage indebtedness, and other borrowings. 3 The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), enacted on July 21, 2010, provided 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 was available to all depositors, including consumers, businesses and government entities. The coverage was 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 Effective April 1, 2011, the deposit insurance assessment base changed to average consolidated total assets minus average tangible equity.5 Revisions to insurance Figures for estimated insured deposits in this discussion include insured branches of foreign banks, in addition to insured commercial banks and savings institutions. 5 There is an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under Dodd-Frank. 4 15 2013, Volume 7, No. 3 Table 1 Insured Commercial Banks and Savings Institutions as of June 30, 2013 Distribution of Noninterest-Bearing Domestic Deposits by Asset Size Asset Size Less Than $1 Billion $1 - $10 Billion $10 - $50 Billion $50 - $100 Billion Over $100 Billion Total Number of Institutions 6,287 546 71 16 20 6,940 Total Assets ($ Bil.) $1,381.6 1,413.9 1,450.9 1,223.3 8,940.0 14,409.7 March 31, 2013 December 31, 2012 September 30, 2012 June 30, 2012 March 31, 2012 December 31, 2011 September 30, 2011 June 30, 2011 March 31, 2011 December 31, 2010 7,019 7,083 7,181 7,245 7,308 7,357 7,437 7,513 7,574 7,658 14,424.5 14,450.7 14,223.3 14,031.3 13,926.0 13,892.1 13,811.9 13,602.6 13,414.3 13,318.9 Domestic Noninterest-Bearing Transaction Accounts Larger Than $250,000* Other NoninterestAmount Above Average Average Bearing the $250,000 Account Number of Total Coverage Limit Size Accounts per Deposits** ($ Bil.) ($ Bil.) ($ Bil.) ($ Thou.) Institution $75.8 $48.1 $683 18 $129.7 108.7 78.3 894 223 109.4 111.1 88.7 1,239 1,263 102.5 137.9 123.0 2,310 3,731 41.8 1,262.4 1,147.1 2,738 23,056 377.9 1,695.9 1,485.1 2,011 121 761.3 1,678.7 1,753.5 1,693.5 1,567.3 1,496.5 1,577.3 1,385.3 1,207.1 1,047.1 1,010.0 1,472.1 1,542.3 1,491.7 1,374.7 1,309.9 1,395.5 1,209.7 1,040.8 888.7 854.2 2,031 2,075 2,098 2,034 2,004 2,169 1,972 1,815 1,653 1,621 118 119 112 106 102 99 94 89 84 81 765.2 787.9 698.7 730.5 735.8 688.0 708.1 705.3 699.9 679.5 * The Dodd-Frank Act provided temporary unlimited coverage through 12/31/2012, after which these accounts are not insured above the basic $250,000 coverage limit. ** 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, 2013 Asset Size Less Than $1 Billion $1 - $10 Billion $10 - $50 Billion $50 - $100 Billion Over $100 Billion Total Number of Institutions 6,287 546 71 16 20 6,940 Percent of Assessment Base** Total Institutions ($ Bil.) 90.6 $1,234.0 7.9 1,255.5 1.0 1,288.1 0.2 1,024.3 0.3 7,648.0 100.0 12,449.9 Percent of Base 9.9 10.1 10.3 8.2 61.4 100.0 * 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. assessment rates and risk-based pricing rules for large banks (banks with assets greater than $10 billion) also became effective on that date. The First Quarter 2010 Quarterly Banking Profile includes a more detailed explanation of these changes. Table 2 shows the distribution of the assessment base as of June 30, by institution asset size category. both estimated insured deposits and the new assessment base. As of June 30, 2013, the DIF reserve ratio would have been 0.30 percent using the new assessment base (compared to 0.63 percent using estimated insured deposits), and the 2.0 percent DRR using estimated insured deposits would have been 1.0 percent using the new assessment base. Dodd-Frank requires that, for at least five years, the FDIC must make available to the public the DIF reserve ratio and the Designated Reserve Ratio (DRR) using Author: FDIC Quarterly 16 Kevin Brown, Senior Financial Analyst Division of Insurance and Research (202) 898-6817 2013, Volume 7, No. 3 Quarterly Banking Profile Table I-B. Insurance Fund Balances and Selected Indicators (dollar figures in millions) Beginning Fund Balance����� Deposit Insurance Fund* 2nd 1st 4th 3rd Quarter Quarter Quarter Quarter 2012 2012 2011 2011 $15,292 $11,827 $7,813 $3,916 2nd Quarter 2013 $35,742 1st Quarter 2013 $32,958 4th Quarter 2012 $25,224 3rd Quarter 2012 $22,693 2,526 2,645 2,937 2,833 2,933 3,694 3,209 54 -9 66 -8 81 20 0 439 0 436 0 469 0 442 0 407 0 460 -33 -499 -3,344 -84 -807 51 55 1,878 57 4,095 -96 2,129 30 2,784 -22 7,734 7 2,531 -108 7,401 Changes in Fund Balance: Assessments earned�������������� Interest earned on investment securities������ Realized gain on sale of investments���������������������� Operating expenses��������������� Provision for insurance losses������������������������������� All other income, net of expenses��������������� Unrealized gain/(loss) on available-for-sale securities������������������������� Total fund balance change����� 2nd Quarter 2011 -$1,023 1st Quarter 2011 -$7,352 4th Quarter 2010 -$8,009 3rd Quarter 2010 -$15,247 2nd Quarter 2010 -$20,717 3,642 3,163 3,484 3,498 3,592 3,242 33 30 37 28 39 40 64 0 334 0 433 0 463 0 395 0 452 0 414 0 382 12 1,533 -763 -2,095 -3,089 2,446 -3,763 -2,552 63 2,599 83 80 66 48 94 55 160 3,465 40 4,014 -188 3,897 27 4,939 57 6,329 -30 657 163 7,238 -61 5,470 -15,247 Ending Fund Balance����������� Percent change from four quarters earlier��������� 37,871 35,742 32,958 25,224 22,693 15,292 11,827 7,813 3,916 -1,023 -7,352 -8,009 66.88 133.73 178.67 222.85 479.49 NM NM NM NM NM NM NM NM Reserve Ratio (%)����������������� 0.63 0.59 0.44 0.35 0.32 0.22 0.17 0.12 0.06 -0.02 -0.12 -0.15 -0.28 6,013,067 7,412,319 7,257,372 7,089,783 6,761,531 6,529,322 6,384,450 6,306,215 5,421,425 5,437,417 6.19 7.33 Estimated Insured Deposits**������������������������������ 5,965,510 Percent change from four quarters earlier��������� -15.86 -14.57 Domestic Deposits��������������� 9,424,529 9,454,602 Percent change from four quarters earlier��������� 5.45 6.85 Number of institutions reporting������������������������� 6,949 7,028 9,474,604 9,084,804 7,038,822 6,980,332 10.25 10.69 8,937,726 8,848,707 8.58 8,782,134 16.67 16.61 1.98 12.86 8,526,713 8,244,900 8,006,898 24.72 20.08 7,887,733 7,753,409 7,681,283 7.88 6.55 8.40 10.51 11.34 9.97 7.34 3.95 2.37 2.54 1.58 7,092 7,190 7,254 7,317 7,366 7,446 7,522 7,583 7,667 7,770 7,839 Deposit Insurance Fund Balance and Insured Deposits ($ Millions) DIF Reserve Ratios Percent of Insured Deposits 0.59 0.63 0.44 0.32 -0.28 -0.15 -0.12 -0.02 6/10 12/10 0.06 6/11 0.12 0.17 12/11 0.35 0.22 6/12 12/12 6/13 DIF Balance DIF-Insured Deposits 6/10 -$15,247 $5,437,417 9/10 -8,009 5,421,425 12/10 -7,352 6,306,215 3/11 -1,023 6,384,450 6/11 3,916 6,529,322 9/11 7,813 6,761,531 12/11 11,827 6,980,332 3/12 15,292 7,038,822 6/12 22,693 7,089,783 9/12 25,224 7,257,372 12/12 32,958 7,412,319 3/13 35,742 6,013,067 6/13 37,871 5,965,510 Table II-B. Problem Institutions and Failed/Assisted Institutions (dollar figures in millions) Problem Institutions Number of institutions������������������������������������������������������������ Total assets����������������������������������������������������������������������������� 2013*** 553 $192,482 2012*** 732 $282,432 2012 651 $232,701 2011 813 $319,432 2010 884 $390,017 2009 702 $402,782 2008 252 $159,405 Failed Institutions 157 140 Number of institutions������������������������������������������������������������ 16 31 51 92 25 $92,085 $169,709 Total assets****����������������������������������������������������������������������� $1,868 $7,481 $11,617 $34,923 $371,945 Assisted Institutions***** 0 8 Number of institutions������������������������������������������������������������ 0 0 0 0 5 $0 $1,917,482 $0 $0 $0 $0 Total assets����������������������������������������������������������������������������� $1,306,042 * Quarterly financial statement results are unaudited. NM - Not meaningful ** Beginning in the third quarter of 2009, estimates of insured deposits are based on a $250,000 general coverage limit. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) temporarily provided unlimited coverage for noninterest-bearing transaction accounts for two years beginning December 31, 2010, and ending December 31, 2012. *** Through June 30. **** Total assets are based on final Call Reports submitted by failed institutions. *****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 2013, Volume 7, No. 3 Table III-B. Estimated FDIC-Insured Deposits by Type of Institution (dollar figures in millions) June 30, 2013 Commercial Banks and Savings Institutions Number of Institutions Total Assets Domestic Deposits* Est. Insured Deposits FDIC-Insured Commercial Banks����������������������������������������������� FDIC-Supervised������������������������������������������������������������������� OCC-Supervised�������������������������������������������������������������������� Federal Reserve-Supervised������������������������������������������������� 5,980 3,937 1,194 849 $13,350,127 2,122,139 9,237,522 1,990,467 $8,588,632 1,647,110 5,660,457 1,281,065 $5,247,808 1,245,493 3,277,716 724,600 FDIC-Insured Savings Institutions���������������������������������������������� OCC-Supervised Savings Institutions����������������������������������� FDIC-Supervised Savings Institutions����������������������������������� 960 522 438 1,059,548 718,429 341,119 806,919 548,646 258,273 691,505 474,061 217,444 Total Commercial Banks and Savings Institutions���������������������� 6,940 14,409,675 9,395,551 5,939,313 Other FDIC-Insured Institutions U.S. Branches of Foreign Banks������������������������������������������������� 9 57,296 28,978 26,197 Total FDIC-Insured Institutions���������������������������������������������������� .. 6,949 14,466,971 9,424,529 5,965,510 * 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, 2013 (dollar figures in billions) Number of Annual Rate in Basis Points Institutions 2.50-5.00 1,358 5.01-7.50 2,591 7.51-10.00 1,585 10.01-15.00 837 15.01-20.00 44 20.01-25.00 495 25.01-30.00 10 30.01-35.00 102 greater than 35.00 6 Percent of Total Institutions 19.32 36.87 22.55 11.91 0.63 7.04 0.14 1.45 0.09 Amount of Assessment Base* $1,057 2,716 5,818 2,475 95 135 88 38 14 Percent of Total Assessment Base 8.50 21.84 46.78 19.90 0.76 1.09 0.71 0.30 0.11 * 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 2013, Volume 7, 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 Indemnification Assets and Accounting Standards Update No. 201206 – In October 2012, the FASB issued Accounting Standards Update (ASU) No. 2012-06, “Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution,” to address the subsequent measurement of an indemnification asset recognized in an acquisition of a financial institution that includes an FDIC loss-sharing agreement. This ASU amends ASC Topic 805, Business Combinations (formerly FASB Statement No. 141 (revised 2007),”Business Combinations”), which includes guidance applicable to FDICassisted acquisitions of failed institutions. Under the ASU, when an institution experiences a change in the cash flows expected to be collected on an FDIC loss-sharing indemnification asset because of a change in the cash flows expected to be collected on the assets covered by the loss-sharing agreement, the institution should account for the change in the measurement of the indemnification asset on the same basis as the change in the assets subject to indemnification. Any amortization of changes in the value of the indemnification asset should be limited to the lesser of the term of the indemnification agreement and the remaining life of the indemnified assets. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2012. For institutions with a calendar year fiscal year, the ASU takes effect January 1, 2013. Early adoption of the ASU is permitted. The ASU’s provisions should be applied prospectively to any new indemnification assets acquired after the date of adoption and to indemnification assets existing as of the date of adoption arising from an FDIC-assisted acquisition of a financial institution. Institutions with indemnification assets arising from FDIC loss-sharing agreements are expected to adopt ASU 2012-06 for Call Report purposes in accordance with the effective date of this standard. For additional information, refer to ASU 2012-06, available at http:// www.fasb.org/jsp/FASB/ Page/SectionPage&cid=1176156316498. 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 2013, Volume 7, No. 3 ed 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 the modified repayment terms. A loan restructured in a TDR is an impaired loan. Thus, all TDRs must be measured for impairment in accordance with ASC Subtopic 310-10, Receivables – Overall (formerly FASB Statement No. 114, “Accounting by Creditors for Impairment of a Loan,” as amended), and the Call Report Glossary entry for “Loan Impairment.” Consistent with ASC Subtopic 310-10, TDRs may be aggregated and measured for impairment with other impaired loans that share common risk characteristics by using historical statistics, such as average recovery period and average amount recovered, along with a composite effective interest rate. The outcome of such an aggregation approach must be consistent with the impairment measurement methods prescribed in ASC Subtopic 310-10 and Call Report instructions for loans that are “individually” considered impaired instead of the measurement method prescribed in ASC Subtopic 450-20, Contingencies – Loss Contingencies (formerly FASB Statement No. 5, “Accounting for Contin gencies”) for loans not individually considered impaired that are collectively evaluated for impairment. When a loan not previously considered individually impaired is restructured and determined to be a TDR, absent a partial charge-off, it generally is not appropriate for the impairment estimate on the loan to decline as a result of the change from the impairment measurement method prescribed in ASC Subtopic 450-20 to the methods prescribed in ASC Subtopic 310-10. Goodwill Impairment Testing – In September 2011, the FASB issued Accounting Standards Update (ASU) No. 2011-08, “Testing Goodwill for Impairment,” to address concerns about the cost and complexity of the existing goodwill impairment test in ASC Topic 350, Intangibles-Goodwill and Other (formerly FASB Statement No. 142, “Goodwill and Other Intangible Assets”). The ASU’s amendments to ASC Topic 350 are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011 (i.e., for annual or interim tests performed on or after January 1, 2012, for institutions with a calendar year fiscal year). Early adoption of the ASU was permitted. Under ASU 2011-08, an institution has the option of first assessing qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test described in ASC Topic 350. If, after considering all relevant events and circumstances, an institution determines it is unlikely (that is, a likelihood of 50 percent or less) that the fair value of a reporting unit is less than its carrying amount (including goodwill), then the institution does not need to perform the two-step goodwill impairment test. If the institution instead concludes that the opposite is true (that is, it is likely that the fair value of a reporting unit is less than its carrying amount), then it is required to perform the first step and, if necessary, the second step of the two-step goodwill impairment test. Under ASU 2011-08, an institution may choose to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step goodwill impairment test. Extended Net Operating Loss Carryback Period – The Worker, Homeownership, and Business Assistance Act of 2009, which was enacted on November 6, 2009, permits banks and other businesses, excluding those banking organizations that received capital from the U.S. Treasury under the Troubled Asset Relief Program, to elect a net operating loss carryback period of three, four, or five years instead of the usual carryback period of two years for any one tax year ending after December 31, 2007, and beginning before January 1, 2010. For calendar-year banks, this extended carryback period applies to either the 2008 or 2009 tax year. The amount of the net operating loss that can be carried back to the fifth carryback year is limited to 50 percent of the available taxable income for that fifth year, but this limit does not apply to other carryback years. Under generally accepted accounting principles, banks may not record the effects of this tax change in their balance sheets and income statements for financial and regulatory reporting purposes until the period in which the law was enacted, i.e., the fourth quarter of 2009. Therefore, banks should recognize the effects of this fourth quarter 2009 tax law change on their current and deferred tax assets and liabilities, including valuation allowances for deferred tax assets, in their Call Reports for December 31, 2009. Banks should not amend their Call Reports for prior quarters for the effects of the extended net operating loss carryback period. The American Recovery and Reinvestment Act of 2009, which was enacted on February 17, 2009, permits qualifying small businesses, including FDIC-insured institutions, to elect a net operating loss carryback period of three, four, or five years instead of the usual carryback period of two years for any tax year ending in 2008 or, at the small business’s election, any tax year beginning in 2008. Under generally acceptFDIC Quarterly 20 2013, Volume 7, No. 3 Quarterly Banking Profile Troubled Debt Restructurings and Accounting Standards Update No. 2011-02 – In April 2011, the FASB issued Accounting Standards Update (ASU) No. 2011-02, “A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring,” to provide additional guidance to help creditors determine whether a concession has been granted to a borrower and whether a borrower is experiencing financial difficulties. The guidance is also intended to reduce diversity in practice in identifying and reporting TDRs. This ASU was effective for public companies for interim and annual periods beginning on or after June 15, 2011, and should have been applied retrospectively to the beginning of the annual period of adoption for purposes of identifying TDRs. The measurement of impairment for any newly identified TDRs resulting from retrospective application should have been applied prospectively in the first interim or annual period beginning on or after June 15, 2011. (For most public institutions, the ASU takes effect July 1, 2011, but retrospective application begins as of January 1, 2011.) Nonpublic companies should apply the new guidance for annual periods ending after December 15, 2012, including interim periods within those annual periods. (For most nonpublic institutions, the ASU took effect January 1, 2012.) Early adoption of the ASU was permitted for both public and nonpublic entities. Nonpublic entities that adopt early are subject to a retrospective identification requirement. For additional information, refer to ASU 201102, 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 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. FDIC Quarterly 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 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. 21 2013, Volume 7, No. 3 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 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. FDIC Quarterly 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. DEFINITIONS (in alphabetical order) All other assets – total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, investment in unconsolidated subsidiaries, customers’ liability on acceptances outstanding, assets held in trading accounts, federal funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid deposit insurance assessments, and other assets. All other liabilities – bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses, fair market value of derivatives, and other liabilities. Assessment base – effective April 1, 2011, the deposit insurance assessment base has changed to “average consolidated total assets minus average tangible equity” with an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under Dodd-Frank. Previously the assessment base was “assessable deposits” and consisted of DIF deposits (deposits insured by the FDIC Deposit Insurance Fund) in banks’ domestic offices with certain adjustments. Assets securitized and sold – total outstanding principal balance of assets securitized and sold with servicing retained or other seller- provided credit enhancements. Capital Purchase Program (CPP) – as announced in October 2008 under the TARP, the Treasury Department purchase of noncumulative perpetual preferred stock and related warrants that is treated as Tier 1 capital for regulatory capital purposes is included in “Total equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued by publicly-traded banks are reflected as well in “Surplus.” Warrants to purchase common stock or noncumulative preferred stock of not-publicly-traded bank stock are classified in a bank’s balance sheet as “Other liabilities.” Construction and development loans – includes loans for all property types under construction, as well as loans for land acquisition and development. Core capital – common equity capital plus noncumulative perpetual preferred stock plus minority interest in consolidated subsidiaries, less goodwill and other ineligible intangible 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. 22 2013, Volume 7, No. 3 Quarterly Banking Profile 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. Estimated insured deposits – in general, insured deposits are total domestic deposits minus estimated uninsured deposits. Beginning March 31, 2008, for institutions that file Call Reports, insured deposits are total assessable deposits minus estimated uninsured deposits. Beginning September 30, 2009, insured deposits include deposits in accounts of $100,000 to $250,000 that are covered by a temporary increase in the FDIC’s standard maximum deposit insurance amount (SMDIA). The Dodd-Frank Wall Street Reform and Consumer Protection Act enacted on July 21, 2010, made permanent the standard maximum deposit insurance amount (SMDIA) of $250,000. Also, the Dodd-Frank Act amended the Federal Deposit Insurance Act to include noninterestbearing transaction accounts as a new temporary deposit insurance account category. All funds held in noninterestbearing transaction accounts were fully insured, without limit, from December 31, 2010, through December 31, 2012. Failed/assisted institutions – an institution fails when regulators take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover losses. An institution is defined as “assisted” when the institution remains open and receives assistance in order to continue operating. Fair Value – the valuation of various assets and liabilities on the balance sheet—including trading assets and liabilities, available-for-sale securities, loans held for sale, assets and liabilities accounted for under the fair value option, and foreclosed assets—involves the use of fair values. During periods of market stress, the fair values of some financial instruments and nonfinancial assets may decline. FHLB advances – all borrowings by FDIC insured institutions from the Federal Home Loan Bank System (FHLB), as reported by Call Report filers and by TFR filers. 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. Derivatives transaction types: Futures and forward contracts – contracts in which the buyer agrees to purchase and the seller agrees to sell, at a specified future date, a specific quantity of an underlying variable or index at a specified price or yield. These contracts exist for a variety of variables or indices, (traditional agricultural or physical commodities, as well as currencies and interest rates). Futures contracts are standardized and are traded on organized exchanges which set limits on counterparty credit exposure. Forward contracts do not have standardized terms and are traded over the counter. Option contracts – contracts in which the buyer acquires the right to buy from or sell to another party some specified amount of an underlying variable or index at a stated price (strike price) during a period or on a specified future date, in return for compensation (such as a fee or premium). The seller is obligated to purchase or sell the variable or index at the discretion of the buyer of the contract. Swaps – obligations between two parties to exchange a series of cash flows at periodic intervals (settlement dates), for a specified period. The cash flows of a swap are either fixed, or determined for each settlement date by multiplying the quantity (notional principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged. Derivatives underlying risk exposure – the potential exposure characterized by the level of banks’ concentration in particular underlying instruments, in general. Exposure can result from market risk, credit risk, and operational risk, as well as, interest rate risk. Domestic deposits to total assets – total domestic office deposits as a percent of total assets on a consolidated basis. Earning assets – all loans and other investments that earn interest or dividend income. Efficiency ratio – Noninterest expense less amortization of intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net operating revenues that are absorbed by overhead expenses, so that a lower value indicates greater efficiency. FDIC Quarterly 23 2013, Volume 7, No. 3 Net interest margin – the difference between interest and dividends earned on interest-bearing assets and interest paid to depositors and other creditors, expressed as a percentage of average earning assets. No adjustments are made for interest income that is tax exempt. Net loans to total assets – loans and lease financing receivables, net of unearned income, allowance and reserves, as a percent of total assets on a consolidated basis. Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and extraordinary items. Income taxes subtracted from operating income have been adjusted to exclude the portion applicable to securities gains (or losses). Noncurrent assets – the sum of loans, leases, debt securities, and other assets that are 90 days or more past due, or in nonaccrual status. Noncurrent loans & leases – the sum of loans and leases 90 days or more past due, and loans and leases in nonaccrual status. Number of institutions reporting – the number of institutions that actually filed a financial report. New reporters – insured institutions filing quarterly financial reports for the first time. Other borrowed funds – federal funds purchased, securities sold with agreements to repurchase, demand notes issued to the U.S. Treasury, FHLB advances, other borrowed money, mortgage indebtedness, obligations under capitalized leases and trading liabilities, less revaluation losses on assets held in trading accounts. Other real estate owned – primarily foreclosed property. Direct and indirect investments in real estate ventures are excluded. The amount is reflected net of valuation allowances. For institutions that file a Thrift Financial Report (TFR), the valuation allowance subtracted also includes allowances for other repossessed assets. Also, for TFR filers the components of other real estate owned are reported gross of valuation allowances. (TFR filers began filing Call Reports effective with the quarter ending March 31, 2012.) Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their losses) compared to the same period a year earlier. “Problem” institutions – federal regulators assign a composite rating to each financial institution, based upon an evaluation of financial and operational criteria. The rating is based on a scale of 1 to 5 in ascending order of supervisory concern. “Problem” institutions are those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending upon the degree of risk and supervisory concern, they are rated either a “4” or “5.” The number and assets of “problem” institutions are based on FDIC composite ratings. Prior to March 31, 2008, for institutions whose primary federal regulator was the OTS, the OTS composite rating was used. 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. FDIC Quarterly 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* Well-capitalized ≥10 ≥6 and and Tier 1 Leverage Tangible Equity ≥5 – Adequately capitalized ≥8 and ≥4 and ≥4 – Undercapitalized ≥6 and ≥3 and ≥3 – Significantly undercapitalized <6 or <3 or <3 Critically undercapitalized – – and >2 ≤2 – * As a percentage of risk-weighted assets. Risk Categories and Assessment Rate Schedule – The current risk categories became effective January 1, 2007. Capital ratios and supervisory ratings distinguish one risk category from another. Effective April 1, 2011, risk categories for large institutions (generally those with at least $10 billion in assets) are eliminated. The following table shows the relationship of risk categories (I, II, III, IV) for small institutions to capital and supervisory groups as well as the initial base assessment rates (in basis points) for each risk category. Supervisory Group A generally includes institutions with CAMELS composite ratings of 1 or 2; Supervisory Group B generally includes institutions with a CAMELS composite rating of 3; and Supervisory Group C generally includes institutions with CAMELS composite ratings of 4 or 5. For purposes of risk-based assessment capital groups, undercapitalized includes institutions that are significantly or critically undercapitalized. Supervisory Group Capital Category 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. 24 2013, Volume 7, No. 3 Quarterly Banking Profile The base assessment rates for small institutions in Risk Category I are based on a combination of financial ratios and CAMELS component ratings (the financial ratios method). As required by Dodd-Frank, the calculation of risk-based assessment rates for large institutions no longer relies on longterm debt issuer ratings. Rates for large institutions are based on CAMELS ratings and certain forward-looking financial measures combined into two scorecards—one for most large institutions and another for the remaining very large institutions that are structurally and operationally complex or that pose unique challenges and risks in case of failure (highly complex institutions). In general, a highly complex institution is an institution (other than a credit card bank) with more than $500 billion in total assets that is controlled by a parent or intermediate parent company with more than $500 billion in total assets or a processing bank or trust company with total fiduciary assets of $500 billion or more. The FDIC retains its ability to take additional information into account to make a limited adjustment to an institution’s total score (the large bank adjustment), which will be used to determine an institution’s initial base assessment rate. Effective April 1, 2011, the three possible adjustments to an institution’s initial base assessment rate are as follows: (1) Unsecured Debt Adjustment: An institution’s rate may decrease by up to 5 basis points for unsecured debt. The unsecured debt adjustment cannot exceed the lesser of 5 basis points or 50 percent of an institution’s initial base assessment rate (IBAR). Thus, for example, an institution with an IBAR of 5 basis points would have a maximum unsecured debt adjustment of 2.5 basis points and could not have a total base assessment rate lower than 2.5 basis points. (2) Depository Institution Debt Adjustment: For institutions that hold longterm unsecured debt issued by another insured depository institution, a 50 basis point charge is applied to the amount of such debt held in excess of 3 percent of an institution’s Tier 1 capital. (3) Brokered Deposit Adjustment: Rates for small institutions that are not in Risk Category I and for large institutions that are not well capitalized or do not have a composite CAMELS rating of 1 or 2 may increase (not to exceed 10 basis points) if their brokered deposits exceed 10 percent of domestic deposits. After applying all possible adjustments (excluding the Depository Institution Debt Adjustment), minimum and maximum total base assessment rates for each risk category are as follows: Beginning in 2007, each institution is assigned a risk-based rate for a quarterly assessment period near the end of the quarter following the assessment period. Payment is generally due on the 30th day of the last month of the quarter following the assessment period. Supervisory rating changes are effective for assessment purposes as of the examination transmittal date. Special Assessment – On May 22, 2009, the FDIC board approved a final rule that imposed a 5 basis point special assessment as of June 30, 2009. The special assessment was levied on each insured depository institution’s assets minus its Tier 1 capital as reported in its report of condition as of June 30, 2009. The special assessment was collected September 30, 2009, at the same time that the risk-based assessment for the second quarter of 2009 was collected. The special assessment for any institution was capped at 10 basis points of the institution’s assessment base for the second quarter of 2009 risk-based assessment. Prepaid Deposit Insurance Assessments – In November 2009, the FDIC Board of Directors adopted a final rule requiring insured depository institutions (except those that are exempted) to prepay their quarterly risk-based deposit insurance assessments for the fourth quarter of 2009, and for all of 2010, 2011, and 2012, on December 30, 2009. For regulatory capital purposes, an institution may assign a zero-percent risk weight to the amount of its prepaid deposit assessment asset. As required by the FDIC’s regulation establishing the prepaid deposit insurance assessment program, this program ended with the final application of prepaid assessments to the quarterly deposit insurance assessments payable March 29, 2013. The FDIC issued refunds of any unused prepaid deposit insurance assessments on June 28, 2013. Risk-weighted assets – assets adjusted for risk-based capital definitions which include on-balance-sheet as well as off- balance-sheet items multiplied by risk-weights that range from zero to 200 percent. A conversion factor is used to assign a balance sheet equivalent amount for selected off-balancesheet accounts. Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity,” which are reported at amortized cost (book value), and securities designated as “available-for-sale,” reported at fair (market) value. Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments for income taxes. Thrift Financial Report (TFR) filers also include gains (losses) on the sales of assets held for sale. (TFR filers began filing Call Reports effective with the quarter ending March 31, 2012.) Seller’s interest in institution’s own securitizations – the reporting bank’s ownership interest in loans and other assets that have been securitized, except an interest that is a form of recourse or other seller-provided credit enhancement. Seller’s interests differ from the securities issued to investors by the securitization structure. The principal amount of a seller’s interest is generally equal to the total principal amount of the pool of assets included in the securitization structure less the principal amount of those assets attributable to investors, i.e., in the form of securities issued to investors. 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. FDIC Quarterly 25 2013, Volume 7, No. 3 Small Business Lending Fund – The Small Business Lending Fund (SBLF) was enacted into law in September 2010 as part of the Small Business Jobs Act of 2010 to encourage lending to small businesses by providing capital to qualified community institutions with assets of less than $10 billion. The SBLF Program is administered by the U.S. Treasury Department (http://www.treasury.gov/resource-center/ sb-programs/Pages/Small-Business-Lending-Fund.aspx). Under the SBLF Program, the Treasury Department purchased noncumulative perpetual preferred stock from qualifying depository institutions and holding companies (other than Subchapter S and mutual institutions). When this stock has been issued by a depository institution, it is reported as “Perpetual preferred stock and related surplus.” For regulatory capital purposes, this noncumulative perpetual preferred stock qualifies as a component of Tier 1 capital. Qualifying Subchapter S corporations and mutual institutions issue unsecured subordinated debentures to the Treasury Department through the SBLF. Depository institutions that issued these 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. FDIC Quarterly Subchapter S corporation – a Subchapter S corporation is treated as a pass-through entity, similar to a partnership, for federal income tax purposes. It is generally not subject to any federal income taxes at the corporate level. This can have the effect of reducing institutions’ reported taxes and increasing their after-tax earnings. Trust assets – market value, or other reasonably available value of fiduciary and related assets, to include marketable securities, and other financial and physical assets. Common physical assets held in fiduciary accounts include real estate, equipment, collectibles, and household goods. Such fiduciary assets are not included in the assets of the financial institution. Unearned income & contra accounts – unearned income for Call Report filers only. Unused loan commitments – includes credit card lines, home equity lines, commitments to make loans for construction, loans secured by commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for sale, which are accounted for as derivatives on the balance sheet.) Yield on earning assets – total interest, dividend, and fee income earned on loans and investments as a percentage of average earning assets. 26 2013, Volume 7, No. 3 Federal Deposit Insurance Corporation Washington, DC 20429-9990 OFFICIAL BUSINESS PENALTY FOR PRIVATE USE, $300 PRESORTED STANDARD MAIL Postage & Fees Paid FDIC Permit No. G-36