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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

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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.

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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.

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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

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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.

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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

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