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FDIC Quarterly
Quarterly Banking Profile:
Second Quarter 2015
Highlights:
■

Quarterly Net Income Rises to $43 Billion

■

Higher Revenues, Lower Expenses Boost Earnings

■

Earnings for Community Banks Grew 12 Percent
During Second Quarter 2015

■

Growth in Noninterest Income at Community Banks
Outpaces That of Industry

■

DIF Reserve Ratio Rises 3 Basis Points to 1.06 Percent

■

Insured Deposit Growth Was Flat in Second Quarter

2015, Volume 9, 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 Editor

Richard A. Brown

Managing Editors

Matthew Green
Jack Reidhill
Philip A. Shively

Editors

Clayton Boyce
Peggi Gill
Frank Solomon

Publication Manager

Lynne Montgomery

Media Inquiries

(202) 898-6993

FDIC Quarterly
2015, Volume 9, Number 3

Quarterly Banking Profile: Second Quarter 2015
FDIC-insured institutions reported aggregate net income of $43 billion in the second quarter of 2015, up
$2.9 billion (7.3 percent) from a year earlier and the highest quarterly income on record. The increase in
earnings was mainly attributable to a $3.6 billion rise in net operating revenue (net interest income plus
total noninterest income). Of the 6,348 insured institutions in the second quarter of 2015, more than half
(58.7 percent) reported year-over-year growth in quarterly earnings. The proportion of banks that were
unprofitable during the second quarter fell from 6.8 percent a year earlier to 5.6 percent, the lowest since
the first quarter of 2005. See page 1.

Community Bank Performance
Community banks—which represent 93 percent of insured institutions—reported net income of
$5.3 billion in the second quarter, up $555.3 million (11.8 percent) from one year earlier. The increase
was driven by higher net interest income and noninterest income, and lower provision expense. The
12-month growth rate in loan balances at community banks was 8.8 percent, almost twice the rate of
noncommunity banks. Asset quality indicators continued to improve, and community banks accounted
for 44 percent of small loans to businesses. See page 15.

Insurance Fund Indicators
Insured deposit growth was nearly flat, increasing by only 0.1 percent in the second quarter of 2015.
The DIF reserve ratio rose to 1.06 percent on June 30, 2015, up from 1.03 percent at March 31, 2015,
and 0.84 percent at June 30, 2014. One FDIC-insured institution failed during the quarter.
See page 23.

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 2015

INSURED INSTITUTION PERFORMANCE
Quarterly Net Income Rises to $43 Billion
Higher Revenues, Lower Expenses Boost Earnings
Loan Growth Remains Steady
Only One Bank Fails in the Quarter

■
■
■
■

$2.4 billion (2.3 percent), as average interest-bearing
assets were 5.3 percent higher than a year earlier. The
industry net interest margin of 3.06 percent was down
from 3.15 percent in second quarter 2014, but was up
slightly from the 30-year low of 3.02 percent in first
quarter 2015. Noninterest income rose by $1.2 billion
(1.9 percent), as servicing income grew by $1.8 billion
(63.9 percent), and trading revenue declined by
$904 million (14.1 percent).

Improving Earnings Trend Remains Broad-Based
FDIC-insured commercial banks and savings institutions earned $43 billion in net income in second
quarter 2015, an increase of $2.9 billion (7.3 percent)
compared with second quarter 2014. Higher net
­operating revenue and lower noninterest expenses
outweighed increased expenses for loan-loss provisions. Almost 60 percent of all banks—58.9 percent—
reported year-over-year growth in quarterly net
income, while only 5.6 percent were unprofitable in
the quarter. In second quarter 2014, 6.8 percent of all
banks reported net losses. The average return on assets
rose slightly to 1.09 percent, from 1.07 percent in the
2014 quarter.

Litigation Expenses Are Lower
Noninterest expenses declined $1.1 billion
(1.1 percent) from 2014 levels, as itemized litigation
expenses at a few large banks were $1.3 billion less than
in second quarter 2014 and charges for goodwill impairment were $191 million lower. Payroll expenses were
up $1.3 billion (2.8 percent), while expenses for premises and fixed assets were only $6 million (0.1 percent)
higher than the year earlier. Loan-loss provision
expenses posted a fourth consecutive year-over-year
increase, rising by $1.4 billion (20.2 percent).

Margins Rebound Slightly From 30-Year Low
Net operating revenue—the sum of net interest income and total noninterest income—totaled
$172.9 billion in the quarter, up $3.6 billion
(2.1 percent) from the year before. More than twothirds of all banks—67.9 percent—reported higher net
operating income. Net interest income increased by

Chart 1

Chart 2
Unprofitable Institutions and Institutions
With Increased Earnings

Quarterly Net Income

Billions of Dollars
$50

All FDIC-Insured Institutions

$40

35.2
28.728.5

$30
20.9
17.4

$20
$10

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

60

25.3

21.4

50
40
30

-1.7
-6.1
-12.6

-$20

70

2.1

$0
-$10

23.8

Percentage of All FDIC-Insured Institutions
80

43.0
40.4
40.1
39.8
39.8
38.4
38.2
37.5
37.3
36.5
36.1
34.8 34.5
34.5

Securities and Other Gains/Losses, Net

20

Net Operating Income

10

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
2009
2010
2011
2012
2013
2014 2015

0

2006

2007

Source: FDIC.

Source: FDIC.

FDIC Quarterly

Percentage of Institutions With Quarterly Losses

1

2008

2009

2010

2011 2012

2013

2014

2015

2015, Volume 9, No. 3

($50 billion, or 34.6 percent) consisted of loans with
U.S. government guarantees, or loans covered by losssharing agreements with the FDIC.

Net Charge-Off Rate Improves to Pre-Crisis Level
Net charge-offs declined for a 20th consecutive quarter,
falling $1.1 billion (11.2 percent) from the 2014 level.
The average net charge-off rate fell to 0.42 percent in
the quarter, down from 0.50 percent the year before.
This is the lowest quarterly charge-off rate for the
industry since third quarter 2006. Charge-offs were
down, year over year, in all major loan categories except
commercial and industrial (C&I) loans and auto loans.
C&I net charge-offs were $146 million (15.7 percent)
higher than the 2014 quarter, while auto loan chargeoffs were up $71 million (21.2 percent).

Banks Continue to Release Reserves
Insured institutions reduced their loan-loss reserves for
a 21st consecutive quarter. Reserve balances declined
by $1.4 billion (1.2 percent) during the quarter, as net
charge-offs of $8.9 billion exceeded loan-loss provisions of $8.1 billion. This is the smallest quarterly
decline in industry reserves since banks began reducing
them in second quarter 2010. The industry’s ratio of
reserves to total loans and leases fell from 1.45 percent
to 1.40 percent during the quarter. This is the lowest
average since year-end 2007. However, the average
coverage ratio of reserves to noncurrent loans rose
for the 11th quarter in a row, from 79.1 percent to
82.7 percent, because of the decline in noncurrent loan
balances.

Noncurrent Rate Continues to Improve
The amount of noncurrent loans and leases (90 days
or more past due or in nonaccrual status) fell by
$8.3 billion (5.4 percent) during the three months
ended June 30. This is the 21st consecutive quarterly
decline in noncurrent loan balances. Noncurrent
C&I loans increased by $1.5 billion (15.4 percent)
during the quarter, and noncurrent auto loans rose by
$40 million (4.4 percent). Noncurrent levels declined
in all other major loan categories, led by a $6.4 billion
(6.7 percent) decline in noncurrent residential mortgage loans. At the end of June, more than a third of the
industry’s $144.7 billion in noncurrent loan balances

Capital Growth Is Modest
Banks added $4.5 billion to equity capital during the
quarter. The modest 0.3 percent increase reflected a
reduced contribution from retained earnings and a
decline in unrealized gains in available-for-sale securities portfolios. Retained earnings totaled $14.4 billion,

Chart 3

Chart 4
Year-Over-Year Change in Quarterly Loan-Loss Provisions

Quarterly Net Operating Revenue
Billions of Dollars
$200

All FDIC-Insured Institutions

$180

1.4

$0

$160
$140

-$5

Quarterly Noninterest Income

$120

-$10

$100

-$15

$80

-$20

$60

-$25

Quarterly Net Interest Income

$40

-$30

$20
$0

All FDIC-Insured Institutions

Billions of Dollars
$5

-$35

2 3
2011
Source: FDIC.

1234123412341234123412341234123412
2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: FDIC.

FDIC Quarterly

-30.7

2

1

4

1

2 3
2012

4

1

2 3
2013

4

1

2 3
2014

4

1 2
2015

2015, Volume 9, No. 3

Quarterly Banking Profile
which was $3.8 billion (20.9 percent) less than in
second quarter 2014. Banks declared $28.6 billion
in dividends in the second quarter, up $6.7 billion
(30.8 percent) versus the 2014 quarter. Higher interest
rates lowered the market values of securities portfolios.
Accumulated other comprehensive income, a component of equity capital that includes unrealized gains on
securities held for sale, declined by $12.9 billion. The
industry’s equity-to-assets ratio rose from 11.18 percent
to 11.23 percent during the quarter. At mid-year,
98.6 percent of all FDIC-insured institutions, representing 99.9 percent of industry assets, met or exceeded the
requirements for well-capitalized banks, as defined for
Prompt Corrective Action purposes.

by $185 billion (2.2 percent). C&I loans increased by
$49.4 billion (2.8 percent), residential mortgage loans
rose by $24.7 billion (1.3 percent), credit card balances
grew by $21.2 billion (3.1 percent), and loans to nondepository financial institutions increased by $18 billion
(7.6 percent). This last loan category is up 39.9 percent
over the 12 months ended June 30.

Non-Operational Deposit Balances Decline
Total deposit balances fell by $25.8 billion
(0.2 percent), as at least one large bank reduced its
non-operational deposits (wholesale funds in excess
of the level needed to provide operational services
to wholesale customers) to avoid a regulatory capital surcharge. Deposits in foreign offices declined by
$34.1 billion (2.5 percent), and domestic office deposits
rose by $8.3 billion (0.1 percent). Domestic deposits in interest-bearing accounts fell by $37.1 billion
(0.5 percent), while noninterest-bearing deposits
increased by $45.4 billion (1.5 percent). Nondeposit
liabilities declined by $34.1 billion, as trading liabilities
fell by $57.9 billion (18.9 percent). Federal Home Loan
Bank advances rose by $40.7 billion (9.4 percent), and
other unsecured borrowings increased by $38.6 billion
(13.1 percent).

Banks Reduce Their Balances at Federal
Reserve Banks
Total assets declined by $24.7 billion (0.2 percent) in
the three months ended June 30. Banks reduced their
balances at Federal Reserve banks by $182 billion
(12.6 percent) during the quarter. Assets in trading
accounts declined by $70.3 billion (10.6 percent).
Securities and loans maturing in over 15 years increased
by $45 billion (2.7 percent). Total loans and leases rose

Chart 5

Chart 6
Quarterly Change in Loan Balances

Noncurrent Loan Rate and Quarterly Net Charge-Off Rate

All FDIC-Insured Institutions

All FDIC-Insured Institutions

Billions of Dollars
$300
237
$250
221*
203
185
178
$200 189
149
134
$150
118
102
91
$100
74 70
67
65
61
51 53
38
28
$50 43
24
$0
-6
-7 -14
-$50
-37
-63
-$100
-107
-116 -109
-126
-$150
-133
-140
-$200
-210
-$250

Percent
6
Noncurrent Loan Rate
5
4
3
2
1
0
2006

1234123412341234123412341234123412
2007
2008
2009
2010
2011
2012
2013
2014 2015

Quarterly Net Charge-Off Rate
2007

2008

2009

2010

2011

2012

2013

2014

Source: FDIC.
* 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.

2015

Source: FDIC.

FDIC Quarterly

3

2015, Volume 9, No. 3

ees in the second quarter, down from 2,042,688 in the
first quarter and 2,059,827 in second quarter 2014. The
number of insured institutions on the FDIC’s “Problem
List” declined for a 17th consecutive quarter, from 253
to 228. Total assets of problem institutions fell from
$60.3 billion to $56.5 billion.

Only One Bank Failure in the Quarter
The number of insured commercial banks and savings
institutions reporting quarterly financial results in the
second quarter fell to 6,348 from 6,419 reporters in the
first quarter. During the quarter, 66 institutions were
merged into other banks, while one insured institution
failed. This is the first time since fourth quarter 2007
that there has been only one failure in a quarter. For a
sixth consecutive quarter, no new charters were added.
Banks reported 2,042,386 full-time equivalent employ-

Author:

Chart 7

Chart 8
Number and Assets of Banks on the “Problem List”

Balances Due From Federal Reserve Banks
Billions of Dollars
$1,600

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

All FDIC-Insured Institutions

Assets (Billions of Dollars)
$500
$450

Number
1,000
Number of Problem Banks

900

$1,400

$400

800

$1,200

$350

700

$1,000

$300

600

$800

$250

500

$600

$200

400

$400

$150

300

$200

$100

228 200
57

$50

$0

1234123412341234123412341234123412
2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: FDIC.

FDIC Quarterly

Problem Bank Assets

100

0
$0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: FDIC.

4

2015, Volume 9, 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��������������������������������������������������������������������������������������

2015**
1.06
9.45
9.53
1.04
0.43
3.83
3.05
6.85
6,348
5,472
876
5.04
228
$57
5
0

2014**
1.04
9.25
9.56
1.38
0.51
5.29
3.16
-0.12
6,656
5,722
934
6.76
354
$110
12
0

2014
1.01
9.01
9.45
1.20
0.49
5.59
3.14
-0.70
6,509
5,605
904
6.24
291
$87
18
0

2013
1.07
9.54
9.40
1.63
0.69
1.94
3.26
12.81
6,812
5,846
966
8.15
467
$153
24
0

2012
1.00
8.91
9.15
2.20
1.10
4.03
3.42
17.78
7,083
6,071
1,012
10.98
651
$233
51
0

2011
0.88
7.79
9.07
2.61
1.55
4.30
3.60
43.60
7,357
6,274
1,083
16.23
813
$319
92
0

2010
0.65
5.85
8.89
3.11
2.55
1.77
3.76
1,594.34
7,658
6,518
1,140
22.15
884
$390
157
0

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

TABLE II-A. Aggregate Condition and Income Data, All FDIC-Insured Institutions
2nd Quarter
2015
6,348
2,042,386

1st Quarter
2015
6,419
2,042,688

2nd Quarter
2014
6,656
2,059,827

%Change
14Q2-15Q2
-4.6
-0.8

$15,753,305
4,261,429
1,880,016
1,175,728
255,816
477,911
1,798,093
1,422,713
701,190
76,342
990,377
1,924
8,547,030
119,643
8,427,387
3,277,989
17,516
359,979
3,670,434

$15,778,034
4,204,229
1,855,271
1,163,419
246,097
483,904
1,748,648
1,383,937
679,967
71,541
955,638
1,928
8,362,065
121,060
8,241,005
3,267,361
19,338
355,873
3,894,456

$15,172,054
4,123,201
1,843,069
1,126,785
222,752
499,183
1,660,387
1,366,163
678,337
69,620
891,666
1,855
8,109,182
128,185
7,980,996
3,113,095
26,291
365,579
3,686,093

3.8
3.4
2.0
4.3
14.8
-4.3
8.3
4.1
3.4
9.7
11.1
3.8
5.4
-6.7
5.6
5.3
-33.4
-1.5
-0.4

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

15,753,305
11,932,441
10,586,399
1,346,042
1,430,673
92,571
521,934
1,775,686
1,768,818

15,778,034
11,958,285
10,578,106
1,380,179
1,362,966
94,842
590,327
1,771,606
1,764,357

15,172,054
11,490,260
10,058,719
1,431,542
1,382,281
97,802
486,386
1,715,325
1,706,579

3.8
3.8
5.2
-6.0
3.5
-5.3
7.3
3.5
3.6

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���������������������������������������������������������������������������������������
First Half
INCOME DATA
2015
Total interest income�������������������������������������������������������������������
$236,362
Total interest expense�����������������������������������������������������������������
23,030
Net interest income��������������������������������������������������������������
213,333
Provision for loan and lease losses��������������������������������������������
16,475
Total noninterest income�������������������������������������������������������������
127,684
Total noninterest expense�����������������������������������������������������������
207,082
Securities gains (losses)�������������������������������������������������������������
2,065
Applicable income taxes�������������������������������������������������������������
36,294
Extraordinary gains, net��������������������������������������������������������������
-129
Total net income (includes minority interests)���������������������
83,102
		
Bank net income������������������������������������������������������������
82,804
Net charge-offs����������������������������������������������������������������������������
17,950
Cash dividends����������������������������������������������������������������������������
50,853
Retained earnings�����������������������������������������������������������������������
31,952
Net operating income�����������������������������������������������������������
81,777

59,152
144,693
76,794
1,787,500
14,110,660
473,721
6,680,902
17,781,023
873,094
201,004,797
First Half
2014
$233,136
23,860
209,276
14,345
123,616
206,811
1,596
35,672
-4
77,655
77,284
20,449
41,762
35,522
76,535

(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��������������������������������������������������������������������������������������������������������



FDIC Quarterly

61,383
152,971
79,510
1,773,843
14,103,044
433,045
6,575,712
18,087,191
943,846
205,900,541
2nd Quarter
%Change
2015
1.4
$119,295
-3.5
11,454
1.9
107,842
14.9
8,113
3.3
65,065
0.1
103,792
29.4
756
1.7
18,469
N/M
-153
7.0
43,135
7.1
42,990
-12.2
8,949
21.8
28,566
-10.1
14,424
6.9
42,761

65,705
181,568
94,093
1,716,673
13,524,196
437,480
6,327,481
18,339,532
964,951
239,219,451
2nd Quarter
2014
$117,431
11,976
105,454
6,749
63,832
104,916
770
18,065
-79
40,248
40,070
10,081
21,836
18,234
39,792

-10.0
-20.3
-18.4
4.1
4.3
8.3
5.6
-3.0
-9.5
-16.0
%Change
14Q2-15Q2
1.6
-4.4
2.3
20.2
1.9
-1.1
-1.9
2.2
N/M
7.2
7.3
-11.2
30.8
-20.9
7.5

N/M - Not Meaningful

5

2015, Volume 9, No. 3

TABLE III-A. Second Quarter 2015, All FDIC-Insured Institutions
Asset Concentration Groups*
SECOND QUARTER
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������
6,348
Commercial banks�������������������������������������
5,472
Savings institutions�����������������������������������
876
Total assets (in billions)������������������������������������
$15,753.3
Commercial banks�������������������������������������
14,679.2
Savings institutions�����������������������������������
1,074.1
Total deposits (in billions)���������������������������������
11,932.4
Commercial banks�������������������������������������
11,108.4
Savings institutions�����������������������������������
824.0
Bank net income (in millions)���������������������������
42,990
Commercial banks�������������������������������������
39,741
Savings institutions�����������������������������������
3,249

Credit
Card
International Agricultural Commercial
Banks
Banks
Banks
Lenders
14
4
1,484
3,145
12
4
1,466
2,833
2
0
18
312
$510.3
$3,747.4
$258.3
$5,194.2
407.3
3,747.4
252.7
4,825.4
103.1
0.0
5.6
368.8
283.2
2,651.5
213.2
4,036.7
209.0
2,651.5
210.0
3,768.5
74.2
0.0
3.2
268.1
3,609
8,952
780
12,418
2,645
8,952
759
11,479
964
0
22
939

Mortgage Consumer
Lenders
Lenders
545
55
143
40
402
15
$445.4
$178.4
145.7
88.1
299.7
90.3
336.8
149.9
116.8
73.8
219.9
76.1
1,027
547
468
347
559
200

Other
Specialized
All Other
<$1 Billion
<$1 Billion
353
682
315
601
38
81
$60.6
$122.7
54.2
104.8
6.4
17.9
48.6
102.9
44.0
88.5
4.6
14.3
48
314
-112
257
160
57

All Other
>$1 Billion
66
58
8
$5,236.2
5,053.8
182.4
4,109.8
3,946.3
163.5
15,294
14,947
348

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����������������

3.38
0.32
3.06
1.65
2.64
0.21
1.09
1.56
1.09
9.74
0.42

10.27
0.92
9.34
4.64
6.51
2.32
2.89
4.45
2.89
19.18
2.80

2.61
0.31
2.30
1.86
2.38
0.15
0.94
1.35
0.94
9.76
0.57

4.08
0.46
3.62
0.67
2.52
0.13
1.19
1.41
1.21
10.60
0.12

3.58
0.37
3.21
1.20
2.69
0.11
0.97
1.29
0.96
8.03
0.17

3.20
0.65
2.55
0.95
2.15
0.01
0.85
1.31
0.92
8.08
0.13

4.04
0.44
3.60
1.58
2.71
0.43
1.21
1.90
1.22
12.07
0.58

2.99
0.34
2.65
5.92
6.42
0.00
0.25
2.01
0.31
2.08
0.18

3.92
0.41
3.50
1.16
3.06
0.09
0.99
1.29
1.02
8.72
0.24

3.01
0.19
2.82
1.74
2.38
0.16
1.16
1.72
1.17
10.49
0.39

90.66
59.22
5.64
58.87

108.47
48.30
0.00
85.71

73.82
61.01
0.00
75.00

161.53
62.03
3.03
58.29

95.27
65.07
5.66
63.56

12.19
63.63
8.62
50.64

101.82
53.43
9.09
54.55

-5.05
76.74
9.07
44.19

67.07
69.38
7.33
52.05

82.77
54.87
1.52
62.12

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

0
66
1

0
0
0

0
0
0

0
14
0

0
45
1

0
3
0

0
0
0

0
0
0

0
4
0

0
0
0

PRIOR SECOND QUARTERS
(The way it was...)
Return on assets (%)��������������������������������2014
��������������������������������������2012
��������������������������������������2010

1.07
0.99
0.63

3.03
2.97
1.45

0.87
0.72
1.00

1.20
1.27
1.03

1.00
0.96
0.18

0.87
0.85
0.66

1.08
1.82
1.26

2.05
1.07
1.57

0.89
0.90
0.43

1.05
0.98
0.65

Net charge-offs to loans & leases (%)�����2014
��������������������������������������2012
��������������������������������������2010

0.50
1.09
2.68

2.96
3.91
11.59

0.77
1.37
2.04

0.13
0.23
0.65

0.27
0.75
1.97

0.25
0.64
1.15

0.45
1.53
2.20

0.28
0.55
0.60

0.26
0.43
0.49

0.25
0.92
1.90

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

FDIC Quarterly

6

2015, Volume 9, No. 3

Quarterly Banking Profile
TABLE III-A. Second Quarter 2015, All FDIC-Insured Institutions
Asset Size Distribution
SECOND QUARTER
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������������
6,348
Commercial banks�������������������������������������������
5,472
Savings institutions�����������������������������������������
876
Total assets (in billions)������������������������������������������
$15,753.3
Commercial banks�������������������������������������������
14,679.2
Savings institutions�����������������������������������������
1,074.1
Total deposits (in billions)���������������������������������������
11,932.4
Commercial banks�������������������������������������������
11,108.4
Savings institutions�����������������������������������������
824.0
Bank net income (in millions)���������������������������������
42,990
Commercial banks�������������������������������������������
39,741
Savings institutions�����������������������������������������
3,249

Geographic Regions*

Less Than
$100
$1 Billion
Greater
$100
Million to
to
Than
Million
$1 Billion $10 Billion $10 Billion New York
1,799
3,847
591
111
787
1,583
3,315
480
94
408
216
532
111
17
379
$105.7
$1,203.1
$1,616.8 $12,827.7
$3,063.0
93.5
1,014.7
1,336.8
12,234.3
2,619.9
12.2
188.5
280.0
593.4
443.1
88.7
998.9
1,267.3
9,577.5
2,284.4
79.2
850.2
1,057.4
9,121.6
1,962.0
9.5
148.7
210.0
455.9
322.4
251
2,928
5,234
34,577
7,297
218
2,444
4,552
32,528
6,532
33
484
683
2,049
766

Atlanta
788
713
75
$3,292.1
3,203.2
88.8
2,548.8
2,481.1
67.7
9,023
8,821
202

Chicago
1,371
1,144
227
$3,537.0
3,427.4
109.6
2,558.0
2,477.6
80.4
8,617
8,187
430

Kansas
City
1,571
1,506
65
$3,405.9
3,349.9
56.0
2,586.5
2,543.4
43.1
10,527
10,414
113

San
Dallas
Francisco
1,338
493
1,251
450
87
43
$930.3
$1,525.0
821.0
1,257.8
109.3
267.2
769.9
1,184.9
679.9
964.4
89.9
220.5
2,667
4,858
2,289
3,498
378
1,360

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����������������������

3.38
0.32
3.06
1.65
2.64
0.21
1.09
1.56
1.09
9.74
0.42

4.08
0.44
3.64
1.28
3.46
0.08
0.93
1.10
0.95
7.58
0.14

4.13
0.46
3.66
1.20
3.23
0.10
0.95
1.29
0.98
8.64
0.14

4.13
0.40
3.73
1.27
2.93
0.18
1.28
1.63
1.31
11.02
0.21

3.21
0.30
2.91
1.74
2.54
0.22
1.07
1.58
1.08
9.69
0.50

3.34
0.41
2.93
1.47
2.57
0.25
0.95
1.28
0.96
8.17
0.49

3.63
0.27
3.36
1.56
2.73
0.26
1.08
1.57
1.10
8.86
0.47

2.63
0.25
2.37
1.87
2.55
0.10
0.96
1.33
0.96
9.61
0.25

3.60
0.34
3.26
1.57
2.49
0.19
1.22
1.82
1.23
11.99
0.50

3.92
0.30
3.62
1.39
3.05
0.16
1.14
1.51
1.15
10.36
0.21

3.87
0.39
3.48
2.03
2.82
0.31
1.33
2.08
1.28
10.32
0.49

90.66
59.22
5.64
58.87

106.87
74.80
11.06
53.64

107.22
70.09
3.82
59.53

123.85
61.65
1.52
70.73

87.66
57.67
2.70
57.66

98.29
62.08
6.35
55.02

95.00
59.38
8.63
58.63

89.66
63.67
6.42
58.42

70.60
54.25
3.69
61.36

119.90
64.33
4.48
55.68

101.39
53.23
6.90
67.34

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

0
66
1

0
28
1

0
32
0

0
6
0

0
0
0

0
8
0

0
6
0

0
11
1

0
16
0

0
17
0

0
8
0

PRIOR SECOND QUARTERS
(The way it was…)
Return on assets (%)��������������������������������������2014
��������������������������������������������2012
��������������������������������������������2010

1.07
0.99
0.63

0.85
0.67
0.52

1.01
0.80
0.24

1.01
1.42
0.12

1.08
0.96
0.75

0.95
0.85
0.75

0.92
0.72
0.15

1.05
0.90
0.75

1.14
1.02
0.72

1.17
1.02
0.69

1.46
2.09
0.88

Net charge-offs to loans & leases (%)����������� 2014
��������������������������������������������2012
��������������������������������������������2010

0.50
1.09
2.68

0.19
0.44
0.71

0.23
0.65
1.14

0.32
0.76
1.93

0.57
1.21
3.08

0.75
1.30
4.09

0.38
1.11
2.56

0.35
0.83
1.91

0.64
1.34
2.94

0.22
0.56
1.26

0.48
0.92
2.31

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

FDIC Quarterly

7

2015, Volume 9, No. 3

TABLE IV-A. First Half 2015, All FDIC-Insured Institutions
Asset Concentration Groups*
FIRST HALF
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������
6,348
Commercial banks�������������������������������������
5,472
Savings institutions�����������������������������������
876
Total assets (in billions)������������������������������������
$15,753.3
Commercial banks�������������������������������������
14,679.2
Savings institutions�����������������������������������
1,074.1
Total deposits (in billions)���������������������������������
11,932.4
Commercial banks�������������������������������������
11,108.4
Savings institutions�����������������������������������
824.0
Bank net income (in millions)���������������������������
82,804
Commercial banks�������������������������������������
76,647
Savings institutions�����������������������������������
6,157
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
14
4
1,484
3,145
12
4
1,466
2,833
2
0
18
312
$510.3
$3,747.4
$258.3
$5,194.2
407.3
3,747.4
252.7
4,825.4
103.1
0.0
5.6
368.8
283.2
2,651.5
213.2
4,036.7
209.0
2,651.5
210.0
3,768.5
74.2
0.0
3.2
268.1
7,287
17,589
1,536
23,732
5,436
17,589
1,490
22,025
1,851
0
46
1,707

Mortgage Consumer
Lenders
Lenders
545
55
143
40
402
15
$445.4
$178.4
145.7
88.1
299.7
90.3
336.8
149.9
116.8
73.8
219.9
76.1
1,897
1,028
870
605
1,027
423

Other
Specialized
All Other
<$1 Billion
<$1 Billion
353
682
315
601
38
81
$60.6
$122.7
54.2
104.8
6.4
17.9
48.6
102.9
44.0
88.5
4.6
14.3
337
609
42
505
295
104

All Other
>$1 Billion
66
58
8
$5,236.2
5,053.8
182.4
4,109.8
3,946.3
163.5
28,789
28,086
704

3.37
0.33
3.05
1.63
2.64
0.21
1.04
1.52
1.06
9.45
0.43

10.35
0.90
9.45
4.53
6.37
2.33
2.94
4.55
2.95
19.55
2.78

2.60
0.32
2.29
1.85
2.39
0.15
0.91
1.32
0.92
9.65
0.59

4.03
0.46
3.57
0.65
2.51
0.10
1.16
1.39
1.19
10.51
0.07

3.59
0.38
3.21
1.19
2.70
0.11
0.92
1.29
0.93
7.76
0.16

3.24
0.66
2.58
0.95
2.17
0.03
0.80
1.27
0.86
7.43
0.14

4.01
0.45
3.57
1.44
2.63
0.44
1.14
1.81
1.15
11.47
0.59

2.99
0.34
2.64
5.76
5.93
0.02
1.04
2.30
1.11
7.33
0.16

3.90
0.42
3.48
1.14
3.06
0.09
0.96
1.26
1.00
8.52
0.19

2.97
0.19
2.79
1.71
2.42
0.17
1.09
1.63
1.11
9.92
0.40

91.78
59.89
5.04
63.19

107.77
47.39
0.00
71.43

73.60
61.62
0.00
100.00

226.77
62.73
2.36
63.14

102.25
65.45
5.31
68.14

32.58
63.71
8.26
53.39

103.79
53.43
5.45
60.00

46.49
71.98
7.65
48.73

84.75
69.92
6.16
56.01

83.55
56.48
1.52
59.09

89.57

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 ����������������������������
Common equity tier 1 capital 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��������������������

92.27

87.47

93.05

90.47

94.48

95.63

91.59

92.51

89.04

1.40
82.69

3.21
331.40

1.69
86.28

1.44
151.99

1.20
108.13

1.06
39.04

1.11
84.06

1.79
111.32

1.44
92.27

1.29
53.65

1.04
11.23
9.53
12.67
12.76
14.24
70.63
53.50
67.20

0.74
14.83
12.54
12.63
12.75
15.21
133.19
73.92
54.92

0.75
9.78
8.49
12.55
12.58
13.88
50.16
35.49
45.64

0.80
11.40
10.68
14.66
14.67
15.79
77.47
63.94
82.53

0.96
11.96
10.27
12.45
12.65
14.12
86.32
67.08
77.08

1.94
11.52
11.25
22.57
22.63
23.54
81.05
61.28
75.60

1.03
10.26
10.21
13.57
13.80
14.66
86.96
73.10
84.06

0.69
15.10
14.25
31.75
31.76
32.74
33.66
26.99
79.41

1.27
11.70
11.34
19.63
19.66
20.82
65.30
54.75
83.84

1.28
11.13
8.94
12.01
12.02
13.59
62.87
49.34
71.46

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

0
152
5

0
0
0

0
0
0

0
23
0

0
109
4

0
4
0

0
0
0

0
1
0

0
13
1

0
2
0

PRIOR FIRST HALVES
(The way it was...)
Number of institutions������������������������������2014
��������������������������������������2012
��������������������������������������2010

6,656
7,245
7,830

16
18
21

4
5
4

1,493
1,542
1,579

3,300
3,636
4,267

569
712
744

56
50
84

391
402
293

765
815
776

62
65
62

Total assets (in billions)����������������������������2014
��������������������������������������2012
��������������������������������������2010

$15,172.1
14,030.8
13,199.5

$601.2
567.7
698.2

$3,802.2
3,710.9
3,059.4

$250.6
220.4
189.0

$5,059.4
4,161.1
4,357.9

$458.5
823.9
794.5

$212.7
96.9
97.1

$63.1
64.5
38.1

$138.7
144.4
124.3

$4,585.6
4,241.1
3,841.2

Return on assets (%)��������������������������������2014
��������������������������������������2012
��������������������������������������2010

1.04
0.99
0.59

3.25
3.14
1.14

0.82
0.76
0.87

1.15
1.27
1.00

0.98
0.90
0.20

0.82
0.84
0.72

1.06
1.81
1.37

1.96
1.18
1.46

0.86
0.92
0.62

0.99
1.00
0.64

Net charge-offs to loans & leases (%)�����2014
��������������������������������������2012
��������������������������������������2010

0.51
1.12
2.78

2.98
3.95
13.44

0.74
1.43
2.40

0.10
0.20
0.53

0.27
0.76
1.89

0.26
0.80
1.19

0.50
1.54
2.39

0.21
0.37
0.55

0.21
0.38
0.44

0.30
0.96
2.09

Noncurrent assets plus
OREO to assets (%)������������������������������2014
��������������������������������������2012
��������������������������������������2010

1.38
2.40
3.33

0.78
1.12
2.25

0.92
1.47
2.60

0.90
1.33
1.71

1.42
2.64
3.90

2.10
2.29
3.17

0.89
1.34
1.05

0.84
1.20
0.79

1.48
1.66
1.59

1.78
3.31
3.70

Equity capital ratio (%)�����������������������������2014
��������������������������������������2012
��������������������������������������2010

11.25
11.32
11.11

14.61
14.75
14.20

9.38
9.04
9.27

11.26
11.49
11.33

12.05
11.91
10.99

11.71
10.75
10.02

9.83
9.69
10.64

13.99
14.67
18.38

11.63
11.51
11.36

11.45
12.38
12.29

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

FDIC Quarterly

8

2015, Volume 9, No. 3

Quarterly Banking Profile
TABLE IV-A. First Half 2015, All FDIC-Insured Institutions
Asset Size Distribution
FIRST HALF
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������������
6,348
Commercial banks�������������������������������������������
5,472
Savings institutions�����������������������������������������
876
Total assets (in billions)������������������������������������������
$15,753.3
Commercial banks�������������������������������������������
14,679.2
Savings institutions�����������������������������������������
1,074.1
Total deposits (in billions)���������������������������������������
11,932.4
Commercial banks�������������������������������������������
11,108.4
Savings institutions�����������������������������������������
824.0
Bank net income (in millions)���������������������������������
82,804
Commercial banks�������������������������������������������
76,647
Savings institutions�����������������������������������������
6,157
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
1,799
3,847
591
111
787
1,583
3,315
480
94
408
216
532
111
17
379
$105.7
$1,203.1
$1,616.8 $12,827.7
$3,063.0
93.5
1,014.7
1,336.8
12,234.3
2,619.9
12.2
188.5
280.0
593.4
443.1
88.7
998.9
1,267.3
9,577.5
2,284.4
79.2
850.2
1,057.4
9,121.6
1,962.0
9.5
148.7
210.0
455.9
322.4
488
5,948
9,370
66,998
13,475
427
5,012
8,098
63,110
11,974
61
936
1,271
3,888
1,501

Atlanta
788
713
75
$3,292.1
3,203.2
88.8
2,548.8
2,481.1
67.7
16,947
16,605
342

Chicago
1,371
1,144
227
$3,537.0
3,427.4
109.6
2,558.0
2,477.6
80.4
17,067
16,332
735

Kansas
City
1,571
1,506
65
$3,405.9
3,349.9
56.0
2,586.5
2,543.4
43.1
20,396
20,149
247

San
Dallas
Francisco
1,338
493
1,251
450
87
43
$930.3
$1,525.0
821.0
1,257.8
109.3
267.2
769.9
1,184.9
679.9
964.4
89.9
220.5
5,066
9,854
4,345
7,244
722
2,610

3.37
0.33
3.05
1.63
2.64
0.21
1.04
1.52
1.06
9.45
0.43

4.05
0.44
3.61
1.24
3.42
0.08
0.90
1.07
0.92
7.41
0.14

4.11
0.46
3.64
1.18
3.19
0.10
0.97
1.30
1.00
8.85
0.13

4.12
0.40
3.72
1.22
2.93
0.18
1.16
1.57
1.18
9.99
0.20

3.20
0.31
2.90
1.72
2.55
0.23
1.04
1.54
1.05
9.45
0.50

3.37
0.41
2.96
1.43
2.59
0.26
0.88
1.24
0.90
7.61
0.48

3.58
0.27
3.30
1.55
2.74
0.26
1.01
1.51
1.04
8.37
0.50

2.62
0.26
2.36
1.88
2.56
0.10
0.95
1.32
0.95
9.58
0.26

3.59
0.35
3.25
1.52
2.49
0.21
1.18
1.75
1.20
11.67
0.52

3.91
0.31
3.60
1.37
3.08
0.16
1.09
1.45
1.11
9.96
0.19

3.89
0.41
3.48
2.01
2.82
0.31
1.34
2.10
1.32
10.56
0.48

91.78
59.89
5.04
63.19

99.04
75.09
10.06
55.48

120.74
69.86
3.33
65.48

127.41
62.49
1.35
73.10

88.50
58.43
2.70
55.86

103.33
62.61
6.10
58.96

88.97
60.48
8.25
61.80

85.82
63.99
5.54
63.82

75.92
55.08
2.99
66.14

135.92
65.42
3.59
60.69

106.19
53.34
7.30
67.75

89.57

91.99

92.65

91.97

88.96

89.31

88.83

88.76

89.27

91.58

93.04

Condition Ratios (%)
Earning assets to total assets���������������������������������
Loss allowance to:
Loans and leases���������������������������������������������
Noncurrent loans and leases���������������������������
Noncurrent assets plus
other real estate owned to assets�����������������������
Equity capital ratio���������������������������������������������������
Core capital (leverage) ratio �����������������������������������
Common equity tier 1 capital 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���������������������������

1.40
82.69

1.51
104.26

1.40
113.54

1.29
110.32

1.42
77.09

1.32
102.13

1.43
73.85

1.48
77.92

1.47
66.53

1.30
100.15

1.27
160.66

1.04
11.23
9.53
12.67
12.76
14.24
70.63
53.50
67.20

1.35
12.53
12.21
19.91
19.97
21.08
68.12
57.17
83.92

1.27
11.28
10.94
15.54
15.61
16.74
78.08
64.83
82.98

1.04
11.84
10.60
13.82
13.88
14.93
86.33
67.67
78.02

1.01
11.14
9.24
12.21
12.31
13.88
67.79
50.62
64.22

0.76
11.74
9.67
12.80
12.98
14.58
69.92
52.15
66.20

1.28
12.36
9.76
12.62
12.73
14.27
74.62
57.77
74.79

1.00
10.13
8.80
12.42
12.46
13.52
64.17
46.41
62.45

1.28
10.32
9.03
11.75
11.75
13.72
68.59
52.09
57.12

1.09
11.14
10.02
13.26
13.42
14.55
75.88
62.79
82.49

0.57
12.37
11.33
14.83
15.00
16.12
78.38
60.90
77.03

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

0
152
5

0
52
3

0
88
1

0
12
1

0
0
0

0
16
1

0
18
2

0
31
2

0
29
0

0
41
0

0
17
0

PRIOR FIRST HALVES
(The way it was…)
Number of institutions������������������������������������ 2014
��������������������������������������������2012
��������������������������������������������2010

6,656
7,245
7,830

1,975
2,341
2,746

4,007
4,244
4,424

565
553
555

109
107
105

823
898
969

837
929
1,064

1,444
1,539
1,619

1,629
1,754
1,852

1,398
1,524
1,643

525
601
683

Total assets (in billions)����������������������������������2014
��������������������������������������������2012
��������������������������������������������2010

$15,172.1
14,030.8
13,199.5

$116.3
135.4
154.7

$1,234.6
1,274.7
1,324.8

$1,492.9
1,425.8
1,428.3

$12,328.3
11,195.0
10,291.8

$3,047.8
2,877.3
2,672.0

$3,049.5
2,934.7
2,987.4

$3,480.2
3,192.6
2,865.9

$3,310.6
3,000.2
1,656.3

$893.3
831.6
787.4

$1,390.7
1,194.5
2,230.6

Return on assets (%)��������������������������������������2014
��������������������������������������������2012
��������������������������������������������2010

1.04
0.99
0.59

0.82
0.70
0.54

0.96
0.81
0.33

1.01
1.24
0.22

1.05
0.99
0.68

0.98
0.91
0.68

0.90
0.78
0.22

0.92
0.88
0.64

1.14
1.05
0.69

1.14
1.08
0.71

1.44
1.85
0.82

Net charge-offs to loans & leases (%)����������� 2014
��������������������������������������������2012
��������������������������������������������2010

0.51
1.12
2.78

0.19
0.39
0.66

0.21
0.61
0.99

0.29
0.76
1.78

0.59
1.26
3.28

0.75
1.31
4.10

0.42
1.19
2.63

0.37
0.87
2.12

0.63
1.39
3.13

0.21
0.56
1.24

0.49
0.90
2.45

Noncurrent assets plus
OREO to assets (%)������������������������������������2014
��������������������������������������������2012
��������������������������������������������2010

1.38
2.40
3.33

1.62
2.21
2.38

1.61
2.73
3.40

1.61
2.87
3.63

1.33
2.31
3.29

0.98
1.58
2.23

1.90
3.63
4.03

1.26
2.19
3.22

1.68
2.56
4.62

1.34
2.31
3.18

0.76
1.65
2.94

Equity capital ratio (%)�����������������������������������2014
��������������������������������������������2012
��������������������������������������������2010

11.25
11.32
11.11

12.15
11.97
12.19

11.09
10.90
10.21

11.91
11.92
11.06

11.18
11.29
11.22

11.91
12.34
12.29

12.42
12.21
11.43

9.86
9.02
9.15

10.41
11.04
11.55

11.16
11.03
10.57

12.76
13.78
11.65

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

FDIC Quarterly

9

2015, Volume 9, No. 3

TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Concentration Groups*
June 30, 2015

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

0.85
0.40
0.29
0.15
0.61
1.47
0.22
1.17
1.07
1.26
0.23
0.69

0.05
0.00
0.00
0.00
0.72
0.04
0.73
1.13
1.14
1.09
0.00
1.09

1.18
0.84
0.31
0.13
0.90
1.80
0.16
1.20
1.06
1.43
0.37
0.77

0.63
0.79
0.52
0.27
0.48
1.08
0.85
1.36
0.78
1.40
0.46
0.64

0.51
0.36
0.28
0.16
0.48
0.93
0.23
1.00
0.99
1.00
0.16
0.45

0.86
0.66
0.36
0.13
0.61
0.95
0.52
1.04
1.36
1.00
0.11
0.80

0.62
0.23
1.50
0.81
0.45
0.58
0.17
0.70
0.63
0.72
0.14
0.63

1.36
1.61
0.87
0.66
0.72
1.84
0.99
1.70
1.46
1.73
0.56
1.30

1.20
1.19
0.78
0.53
0.62
1.52
0.93
1.57
0.86
1.59
0.37
1.15

1.33
0.31
0.26
0.09
0.64
2.12
0.19
1.35
1.02
1.54
0.17
0.90

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

2.83
1.55
1.06
0.34
2.67
4.74
0.61
0.75
1.00
0.51
0.22
1.69

0.48
0.00
0.00
0.00
0.00
0.50
0.64
1.01
1.03
0.51
0.00
0.97

4.38
0.86
0.69
0.25
4.41
6.75
0.55
0.97
0.98
0.94
0.15
1.95

1.11
1.49
1.48
0.65
0.80
1.07
1.21
0.54
0.19
0.57
0.49
0.95

1.45
1.55
0.99
0.34
1.39
2.34
0.65
0.63
0.96
0.61
0.28
1.11

3.03
1.61
1.40
0.59
1.93
3.39
0.84
0.53
1.04
0.47
0.10
2.73

3.56
13.66
8.88
2.60
2.54
3.01
0.40
0.52
1.08
0.36
3.78
1.32

1.86
2.87
2.15
0.84
0.67
1.67
1.50
0.64
1.01
0.60
0.36
1.61

1.77
2.54
2.01
1.27
0.64
1.75
1.60
0.58
0.69
0.58
0.34
1.56

4.86
1.46
1.13
0.32
3.44
7.34
0.53
0.56
0.95
0.33
0.18
2.41

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

0.15
-0.06
0.08
0.00
0.42
0.17
0.21
1.80
2.98
0.63
0.07
0.43

0.15
0.00
0.00
0.00
0.00
0.16
2.13
2.86
2.93
1.34
0.00
2.78

0.27
0.00
0.01
0.00
0.46
0.32
0.23
2.36
3.22
0.93
0.04
0.59

0.01
-0.32
-0.02
-0.01
0.12
0.08
0.17
0.32
1.06
0.26
0.00
0.07

0.10
-0.04
0.09
0.00
0.28
0.12
0.17
0.68
3.30
0.46
0.14
0.16

0.12
0.03
0.04
0.00
0.28
0.12
0.29
0.92
4.11
0.55
0.08
0.14

0.22
-0.15
0.08
0.03
0.63
0.12
0.08
0.77
2.21
0.36
0.03
0.59

0.06
-0.25
0.08
0.35
0.13
0.08
0.11
0.59
2.82
0.33
0.67
0.16

0.10
-0.13
0.09
0.16
0.07
0.13
0.53
0.53
1.75
0.48
0.43
0.19

0.20
-0.12
0.04
0.05
0.56
0.19
0.14
1.54
2.92
0.71
0.04
0.40

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)��������������

$4,261.4
255.8
1,175.7
315.2
477.9
1,880.0
1,798.1
1,422.7
701.2
721.5
1,066.7
8,549.0

$0.3
0.0
0.0
0.0
0.0
0.3
33.6
353.7
337.7
16.0
2.2
389.7

$502.5
8.2
37.8
58.5
74.1
266.8
289.9
245.7
152.3
93.3
315.3
1,353.4

$100.5
5.3
26.4
3.0
1.9
26.1
19.9
6.4
0.5
5.9
40.8
167.6

$2,152.7
180.7
832.8
207.4
197.4
698.1
860.1
247.4
18.9
228.4
267.6
3,527.7

$244.3
4.9
20.4
6.1
12.7
199.2
7.3
5.9
0.6
5.3
18.4
275.9

$29.5
0.5
2.4
0.2
6.1
20.3
7.3
90.1
19.6
70.5
5.1
131.9

$11.9
0.8
4.0
0.3
0.5
5.6
2.1
1.7
0.2
1.5
0.9
16.7

$51.6 $1,168.2
3.1
52.3
12.3
239.6
1.5
38.3
2.1
183.2
28.7
634.8
5.9
571.9
5.9
466.1
0.2
171.2
5.7
294.9
4.8
411.6
68.2
2,617.7

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

17,516.3
5,633.2
4,460.6
314.3
5,228.2
224.2
1,624.8

0.1
0.0
0.0
0.0
0.1
0.0
0.0

929.1
3.6
62.1
1.0
449.4
0.0
384.0

463.7
177.2
151.8
16.1
80.2
38.3
0.1

10,618.0
4,320.2
3,210.6
256.2
2,526.0
157.9
147.1

1,047.7
137.4
74.7
8.3
354.4
1.4
471.5

97.3
15.3
24.0
0.2
51.9
0.0
5.8

144.4
59.6
41.1
5.4
35.3
2.9
0.1

483.7
168.3
149.1
8.4
149.9
8.0
0.0

3,732.3
751.6
747.1
18.6
1,581.0
15.6
616.3

* 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

2015, Volume 9, No. 3

Quarterly Banking Profile
TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Size Distribution
June 30, 2015

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

0.85
0.40
0.29
0.15
0.61
1.47
0.22
1.17
1.07
1.26
0.23
0.69

1.20
1.01
0.92
0.86
0.87
1.60
1.22
1.78
3.33
1.76
0.56
1.16

0.62
0.62
0.42
0.38
0.47
0.92
0.63
1.42
1.52
1.42
0.38
0.64

0.42
0.33
0.29
0.13
0.40
0.67
0.36
1.37
1.85
1.15
0.22
0.47

1.01
0.33
0.23
0.11
0.64
1.71
0.17
1.15
1.04
1.26
0.23
0.73

0.55
0.39
0.32
0.20
0.45
0.89
0.22
1.00
0.85
1.25
0.10
0.53

1.06
0.35
0.28
0.10
0.70
1.79
0.21
1.52
1.21
1.86
0.10
0.84

0.88
0.40
0.33
0.12
0.71
1.44
0.22
1.06
0.88
1.12
0.53
0.71

1.19
0.49
0.32
0.13
0.64
2.01
0.17
1.16
1.12
1.22
0.21
0.81

0.75
0.43
0.33
0.22
0.46
1.51
0.42
0.90
0.62
1.03
0.21
0.66

0.35
0.30
0.16
0.08
0.30
0.61
0.24
0.98
1.37
0.65
0.15
0.45

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

2.83
1.55
1.06
0.34
2.67
4.74
0.61
0.75
1.00
0.51
0.22
1.69

1.57
2.21
1.94
0.86
0.73
1.59
1.81
0.83
1.24
0.82
0.73
1.44

1.33
2.25
1.29
0.73
0.74
1.39
1.21
0.76
1.26
0.73
0.46
1.23

1.29
1.62
1.06
0.39
0.81
1.82
0.91
0.71
1.47
0.37
1.00
1.17

3.61
1.22
0.95
0.26
3.02
5.87
0.52
0.75
0.98
0.51
0.16
1.84

1.87
1.82
1.23
0.26
2.12
2.81
0.58
0.81
0.87
0.71
0.38
1.29

3.55
2.27
1.01
0.31
3.22
5.56
0.58
0.77
1.04
0.48
0.11
1.94

3.28
1.35
1.14
0.44
2.74
5.37
0.57
0.72
0.89
0.67
0.16
1.90

4.09
1.21
1.08
0.34
3.13
6.91
0.61
0.77
1.03
0.45
0.23
2.20

1.63
1.05
0.86
0.76
1.59
2.96
0.94
0.65
1.07
0.44
0.35
1.29

1.06
1.36
0.89
0.25
0.93
1.34
0.55
0.65
1.17
0.21
0.26
0.79

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

0.15
-0.06
0.08
0.00
0.42
0.17
0.21
1.80
2.98
0.63
0.07
0.43

0.09
-0.15
0.13
0.14
0.02
0.11
0.33
0.53
6.55
0.45
0.00
0.14

0.08
0.05
0.07
0.03
0.11
0.11
0.24
0.66
3.98
0.39
0.15
0.13

0.07
-0.06
0.09
0.01
0.16
0.09
0.18
1.56
3.62
0.61
0.17
0.20

0.18
-0.11
0.07
0.00
0.47
0.20
0.21
1.85
2.95
0.65
0.06
0.50

0.12
0.02
0.14
0.00
0.28
0.12
0.19
1.98
2.70
0.70
0.08
0.48

0.23
0.07
0.07
0.03
0.57
0.25
0.16
1.84
2.97
0.65
0.06
0.50

0.14
-0.12
0.04
0.02
0.38
0.17
0.19
1.06
2.90
0.46
0.10
0.26

0.18
-0.25
0.00
-0.03
0.55
0.23
0.21
2.35
3.36
1.05
0.03
0.52

0.04
-0.06
0.02
-0.04
0.27
0.07
0.16
1.15
2.13
0.66
0.20
0.19

0.06
-0.13
0.13
-0.01
0.07
0.03
0.40
1.61
3.15
0.28
0.16
0.48

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)�����

$4,261.4
255.8
1,175.7
315.2
477.9
1,880.0
1,798.1
1,422.7
701.2
721.5
1,066.7
8,549.0

$42.0
2.4
10.9
1.2
1.0
19.1
7.4
3.9
0.1
3.8
8.1
61.3

$606.6
52.8
232.3
32.0
26.5
218.6
102.6
32.6
2.4
30.3
49.5
791.4

$791.6
68.1
319.4
73.5
48.0
263.1
177.1
81.7
25.7
56.0
58.5
1,108.8

$2,821.3
132.5
613.1
208.6
402.3
1,379.1
1,511.0
1,304.5
673.1
631.4
950.6
6,587.4

$869.3
47.1
272.2
112.1
90.2
343.3
274.1
299.4
190.3
109.1
176.2
1,619.0

$891.8
53.7
237.5
39.2
123.9
427.2
444.3
362.1
186.3
175.8
231.5
1,929.7

$843.1
41.5
184.7
83.7
118.8
393.4
370.5
206.8
49.7
157.1
245.7
1,666.2

$841.9
39.1
169.8
27.4
96.0
413.7
371.1
292.2
163.0
129.2
295.8
1,800.9

$364.6
50.3
143.7
13.4
19.7
122.8
124.8
58.0
18.8
39.2
44.6
592.1

$450.6
24.0
167.8
39.5
29.3
179.5
213.3
204.3
93.2
111.1
72.8
941.0

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

17,516.3
5,633.2
4,460.6
314.3
5,228.2
224.2
1,624.8

538.5
188.6
176.2
21.9
143.2
8.7
0.0

5,386.4
2,483.8
1,711.6
127.0
948.8
113.4
1.8

3,786.1
1,568.1
1,173.3
85.8
856.5
82.0
20.4

7,805.3
1,392.8
1,399.5
79.5
3,279.7
20.1
1,602.6

2,376.6
558.4
608.4
99.6
1,063.1
17.6
29.4

4,676.3
1,646.3
1,077.7
41.3
1,336.2
52.8
522.0

3,464.2
792.7
936.7
64.6
1,181.0
45.5
443.8

3,474.2
1,173.7
753.5
43.6
848.2
31.3
593.0

2,342.7
1,047.1
735.3
42.4
441.9
59.6
16.4

1,182.3
415.1
349.0
22.8
357.7
17.5
20.2

* 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

2015, Volume 9, No. 3

Table VI-A. Derivatives, All FDIC-Insured Call Report Filers
Asset Size Distribution
2nd
Quarter
2015

1st
Quarter
2015

4th
Quarter
2014

3rd
Quarter
2014

2nd
Quarter
2014

(dollar figures in millions;
notional amounts unless otherwise indicated)
ALL DERIVATIVE HOLDERS
Number of institutions reporting derivatives�����������������
1,425
1,433
1,400
1,392
1,405
Total assets of institutions reporting derivatives���������� $14,194,185 $14,160,788 $13,921,849 $13,713,845 $13,522,372
Total deposits of institutions reporting derivatives������� 10,703,292 10,664,389 10,461,458 10,291,809
10,169,199
Total derivatives������������������������������������������������������������� 201,004,797 205,900,541 221,952,957 243,042,211 239,219,451

% Change
Less
$100
$1 Billion
14Q2Than $100 Million to
to $10
15Q2
Million
$1 Billion
Billion

Greater
Than
$10 Billion

1.4
5.0
5.3
-16.0

67
$4,959
4,101
243

Derivative Contracts by Underlying Risk Exposure
Interest rate�������������������������������������������������������������������� 153,754,332 157,727,753 174,010,307 190,996,275 191,648,032
Foreign exchange*�������������������������������������������������������� 34,969,944 35,563,105 34,745,833 37,993,284 33,394,779
Equity�����������������������������������������������������������������������������
2,363,902
2,359,532
2,536,871
2,317,271
2,135,462
Commodity & other (excluding credit derivatives)��������
1,428,824
1,233,520
1,210,879
1,327,011
1,214,397
Credit������������������������������������������������������������������������������
8,487,795
9,016,631
9,449,068 10,408,370 10,826,781
Total�������������������������������������������������������������������������������� 201,004,797 205,900,541 221,952,957 243,042,211 239,219,451

-19.8
4.7
10.7
17.7
-21.6
-16.0

243
0
0
0
0
243

23,761
5
37
8
88
23,899

93,969 153,636,359
5,558
34,964,381
323
2,363,542
138
1,428,678
582
8,487,125
100,570 200,880,085

Derivative Contracts by Transaction Type
Swaps���������������������������������������������������������������������������� 117,508,562 117,711,355 135,169,546 148,331,152 146,514,058
Futures & forwards�������������������������������������������������������� 40,352,518 44,537,336 43,368,437 45,058,920 45,263,688
Purchased options���������������������������������������������������������
15,937,174
16,070,746 16,388,881 18,040,949 17,320,870
Written options��������������������������������������������������������������� 15,628,584
15,784,107 16,014,343 17,609,844 16,882,849
Total�������������������������������������������������������������������������������� 189,426,838 194,103,544 210,941,207 229,040,866 225,981,465

-19.8
-10.9
-8.0
-7.4
-16.2

43
86
18
96
243

7,501
8,084
828
7,393
23,807

57,452 117,443,566
22,307
40,322,042
4,780
15,931,548
15,356
15,605,738
99,895 189,302,893

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�����������������������������������
Derivative Contracts by Maturity**
Interest rate contracts����������������������������� < 1 year
		
������������������������������������������ 1-5 years
		
������������������������������������������ > 5 years
Foreign exchange and gold contracts���� < 1 year
		
������������������������������������������ 1-5 years
		
������������������������������������������ > 5 years
Equity contracts��������������������������������������� < 1 year
		
������������������������������������������ 1-5 years
		
������������������������������������������ > 5 years
	Commodity & other contracts (including credit
derivatives, excluding gold contracts)���� < 1 year
		
������������������������������������������ 1-5 years
		
������������������������������������������ > 5 years
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 (%)�����������������������������������������������������

848
406
104
$355,165 $1,220,821 $12,613,240
292,015
970,629
9,436,548
23,899
100,570 200,880,085

71,659
-19,615
2,695
-3,488
35,841
-34,672

68,541
-10,042
335
-5,755
54,676
-53,208

60,023
-4,845
3,769
-3,376
47,533
-36,633

65,131
13,334
-657
219
67,082
-62,731

72,248
4,729
412
965
95,094
-90,465

-0.8
N/M
554.1
N/M
-62.3
N/M

1
0
0
0
0
0

102
0
0
0
-1
0

45
12
0
1
0
-25

71,511
-19,627
2,695
-3,490
35,842
-34,647

63,465,643
54,759,983
35,837,509
25,075,066
3,859,497
1,612,940
1,567,484
579,711
162,800

68,441,175
54,762,223
35,098,993
25,506,806
3,917,108
1,612,457
1,471,238
518,723
167,889

71,808,688
33,727,025
22,213,586
22,145,398
2,586,643
969,047
996,137
351,854
100,903

79,984,774
40,334,338
22,393,371
22,877,893
2,459,545
1,021,332
763,470
323,010
77,484

81,212,211
38,531,826
24,203,418
20,823,569
2,435,601
1,016,489
698,674
292,130
81,116

-21.9
42.1
48.1
20.4
58.5
58.7
124.4
98.4
100.7

157
26
38
0
0
0
0
0
0

10,227
3,307
4,620
0
0
0
10
10
1

19,922
26,277
28,624
3,962
117
0
35
88
31

63,435,337
54,730,374
35,804,227
25,071,104
3,859,380
1,612,940
1,567,439
579,614
162,768

2,358,193
5,329,080
428,157

5,553,836
5,891,761
600,199

1,298,825
3,623,142
289,055

1,407,104
4,045,843
321,390

1,454,791
4,091,545
332,178

62.1
30.2
28.9

0
0
0

3
5
0

95
37
0

2,358,095
5,329,037
428,157

31.6
54.8

39.8
49.8

28.8
48.6

26.0
53.2

23.5
55.1

0.2
1.1

0.3
0.4

0.6
0.9

36.0
62.5

86.4

89.5

77.4

79.2

78.7

1.2

0.8

1.6

98.4

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

59.9

69.8

91.1

83.2

68.7

-12.8

0.0

0.0

0.1

59.8

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

249
11,376,392
8,555,008

249
11,441,332
8,585,204

247
11,274,453
8,457,075

244
11,015,085
8,262,859

247
10,889,259
8,185,855

0.8
4.5
4.5

6
375
305

85
38,978
32,233

93
320,294
253,514

65
11,016,745
8,268,957

Derivative Contracts by Underlying Risk Exposure
Interest rate�������������������������������������������������������������������� 150,988,410 154,706,700 170,761,929 188,011,288 188,587,997
Foreign exchange���������������������������������������������������������� 31,318,657
32,197,481 32,536,107 33,675,874 30,164,255
Equity�����������������������������������������������������������������������������
2,344,517
2,340,858
2,519,511
2,300,741
2,119,239
Commodity & other��������������������������������������������������������
1,426,415
1,227,079
1,205,276
1,320,794
1,206,811
Total�������������������������������������������������������������������������������� 186,077,998 190,472,118 207,022,823 225,308,697 222,078,302

-19.9
3.8
10.6
18.2
-16.2

26
0
0
0
26

2,009
0
0
0
2,009

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

3,402
854
584
660
5,501

959
4,702
791
1,211
7,664

658
2,902
643
255
4,458

-826
4,830
652
946
5,602

2,878
2,026
722
795
6,421

18.2
-57.8
-19.1
-17.0
-14.3

0
0
0
0
0

0
0
0
0
0

16
2
0
0
18

3,386
853
584
660
5,483

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

4.5
18.9

6.4
29.4

3.8
19.6

4.7
23.6

5.4
24.6

0.0
0.0

0.0
0.2

0.5
2.4

4.6
19.4

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

1,305
13,883,264
10,454,398

1,308
13,844,236
10,410,932

1,277
13,613,681
10,218,508

1,272
13,421,601
10,062,067

1,287
13,229,481
9,938,934

1.4
4.9
5.2

62
4,666
3,868

779
327,167
268,703

366
1,109,179
882,826

98
12,442,251
9,299,000

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

2,765,922
561,123
19,385
2,409
3,348,840

3,021,053
585,259
18,674
6,441
3,631,427

3,248,378
647,043
17,361
5,602
3,918,384

2,984,988
724,435
16,530
6,216
3,732,169

3,060,035
819,319
16,223
7,586
3,903,163

-9.6
-31.5
19.5
-68.2
-14.2

217
0
0
0
217

21,752
0
37
8
21,797

72,394
1,258
323
107
74,082

2,671,560
559,865
19,025
2,294
3,252,744

21,574 150,964,800
4,208
31,314,449
0
2,344,517
31
1,426,384
25,813 186,050,150

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

2015, Volume 9, 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
2015

1st
Quarter
2015

4th
Quarter
2014

3rd
Quarter
2014

2nd
% Change Less Than
$100
$1 Billion Greater
Quarter
14Q2$100
Million to
to $10
Than $10
2014
15Q2
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������������������������������������������������������������������������������������������

75

73

78

74

73

2.7

0

22

16

37

$753,697
33
17,766
5,660
6,534
20
89,384
873,094

$821,870
35
17,817
3,740
5,966
19
94,400
943,846

$847,508
36
18,499
3,951
6,191
11
96,257
972,452

$845,279
38
16,782
4,198
6,425
10
95,099
967,831

$844,190
39
16,692
4,312
4,945
17
94,757
964,951

-10.7
-15.4
6.4
31.3
32.1
17.6
-5.7
-9.5

$0
0
0
0
0
0
0
0

$1,987
0
0
0
106
14
111
2,218

$13,279
0
1
1,730
0
5
8,441
23,457

$738,431
33
17,765
3,930
6,429
1
80,832
847,420

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���

3,101
0
1,470
0
187
0
1,084
5,842
38

3,117
0
1,531
0
211
0
1,405
6,264
0

2,918
0
1,529
0
194
0
1,369
6,011
17

2,806
0
1,418
0
188
0
1,129
5,541
17

2,908
0
1,450
0
192
0
1,416
5,966
17

6.6
0.0
1.4
0.0
-2.6
0.0
-23.4
-2.1
123.5

0
0
0
0
0
0
0
0
0

5
0
0
0
0
0
0
5
0

0
0
0
0
0
0
0
0
0

3,096
0
1,470
0
187
0
1,084
5,837
38

3.4
5.3
0.4
0.9
4.0
1.2
0.3
3.0

3.1
5.2
0.4
0.9
4.6
0.0
0.4
2.8

3.9
7.5
0.7
0.9
4.9
0.0
0.3
3.5

3.9
8.0
0.8
0.7
4.8
0.0
0.6
3.5

3.5
9.1
0.8
0.7
5.5
0.0
0.4
3.2

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

1.2
0.0
0.0
0.0
0.0
1.7
1.6
1.1

1.2
0.0
0.0
1.0
0.0
0.0
0.0
0.8

3.4
5.3
0.4
0.8
4.1
0.0
0.4
3.1

2.1
46.5
0.3
0.1
4.3
1.3
1.4
2.0

2.0
44.7
0.3
0.1
5.1
1.3
1.4
2.0

2.2
43.3
0.5
0.1
5.3
2.4
3.3
2.3

2.2
42.0
0.5
0.1
5.2
3.0
6.5
2.6

2.3
40.3
0.6
0.1
6.3
2.9
9.2
2.9

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

1.4
0.0
0.0
0.0
0.0
1.8
12.1
1.9

0.7
0.0
0.0
0.2
0.0
0.0
0.6
0.6

2.1
46.5
0.3
0.1
4.4
0.0
1.5
2.0

0.2
1.8
0.8
0.1
0.3
0.0
0.3
0.2

0.1
0.7
0.4
0.1
0.2
0.0
0.1
0.1

0.4
1.0
1.7
0.2
0.8
0.0
0.9
0.4

0.3
0.1
1.5
0.1
0.6
0.0
0.6
0.3

0.2
0.1
1.2
0.1
0.3
0.0
0.9
0.3

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.1

0.0
0.0
0.0
0.3
0.0
0.0
0.0
0.0

0.2
1.8
0.8
0.1
0.3
0.0
0.3
0.2

0
10,380
0

0
9,983
0

0
12,247
0

0
12,198
0

0
12,905
2

0.0
-19.6
-100.0

0
0
0

0
0
0

0
0
0

0
10,380
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�����������������������������������������������������������������������������������

1,107

1,097

1,103

1,105

1,101

0.5

128

751

177

51

39,019
750
80
74,999
114,847

38,877
694
83
71,382
111,036

40,547
712
91
69,560
110,909

40,838
709
52
66,271
107,869

41,944
727
53
65,112
107,835

-7.0
3.2
50.9
15.2
6.5

1,057
0
0
0
1,057

15,456
10
10
116
15,591

9,877
27
69
1,187
11,160

12,629
713
0
73,696
87,038

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

10,478
144
16
19,660
30,298

10,075
137
19
18,624
28,855

9,737
137
27
17,954
27,855

9,850
140
23
17,233
27,246

9,646
141
24
16,849
26,660

8.6
2.1
-33.3
16.7
13.6

75
0
0
0
76

2,579
10
10
20
2,618

3,919
3
6
70
3,998

3,904
131
0
19,570
23,606

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

110
44,649

117
44,981

125
44,248

132
41,590

134
42,400

-17.9
5.3

9
7

61
164

22
355

18
44,123

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

2,005

887

1,150

918

1,122

78.7

0

0

0

2,005

4,412,785 4,461,369

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

-100.0

0

0

0

0

12,284

0

11,736

0 4,360,845
11,981

10,189

12,129

1.3

4

1

0

12,278

27,902
4,547
325
5.5

28,878
1,600
298
5.5

28,924
1,197
340
5.5

27,948
2,886
385
5.3

28,274
2,773
318
5.4

-1.3
64.0
2.2

0
8
0
0.6

0
208
6
2.1

577
200
4
2.6

27,326
4,131
315
6.4

* 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

2015, Volume 9, No. 3

Quarterly Banking Profile
COMMUNITY BANK PERFORMANCE
Community banks are identified based on criteria defined in the FDIC’s Community Banking Study. When comparing
community bank performance across quarters, prior-quarter dollar amounts are based on community banks designated
in the current quarter, adjusted for mergers. In contrast, prior-quarter performance ratios are based on community banks
designated during the prior quarter.

Earnings Grew 12 Percent During Second Quarter 2015
Average Net Interest Margin of 3.57 Percent Declined From
Second Quarter 2014
Growth in Noninterest Income at Community Banks Outpaces That
of Industry
Loan Balances Rose More Than 8 Percent From the Year Before
Noncurrent Rate Reaches the Lowest Level Since Third Quarter 2007

■
■
■
■
■

Earnings of $5.3 Billion Increased From
Second Quarter 2014

Net Operating Revenue Increased 8 Percent From
the Year-Earlier Quarter

Aggregate earnings for the 5,881 community banks
totaled $5.3 billion during second quarter 2015, up
$555.3 million (11.8 percent) from the year before.
Community banks grew earnings at almost twice the
rate of noncommunity banks (6.4 percent). Improvement in earnings at community banks was led by higher
net interest income and noninterest income, and lower
provision expense. Close to 60 percent of community
banks reported higher year-over-year earnings. The
pretax return on assets was 1.29 percent, up 6 basis
points from second quarter 2014 but 31 basis points
below the noncommunity banks’ rate.

Net operating revenue of $22.3 billion increased
$1.6 billion (8 percent) from 2014 as a result of higher
net interest income (up $1 billion, or 6.2 percent)
and noninterest income (up $631.9 million, or
14.2 percent). Community banks reported an average
net interest margin (NIM) of 3.57 percent during the
second quarter of 2015, down 4 basis points from the
year before, as average asset yields fell more rapidly than
average funding costs. NIM at community banks was
59 basis points above the average for noncommunity
banks, and 51 basis points above the banking industry
average. Close to 61 percent of the annual increase in
noninterest income came from higher loan sales revenue (up $383.5 million, or 47.8 percent).

Chart 1

Chart 2
Net Interest Margin

Contributors to the Year-Over-Year Change in Income
FDIC-Insured Community Banks

Positive Factor
Negative Factor

Billions of Dollars
$1.5
$0.56

Percent

$1.01

-$0.02

$0.63

$1.01

-$0.02

Community Banks
All Insured Institutions

4.0

$0.10

$1.0
3.61

$0.5

3.57

3.5
$0.0
3.15

-$0.5

+12%

+6%

Net
Income

Net
Interest
Income

-4%

+14%

+7%

Loan Loss Noninterest Noninterest
Provisions Income
Expense

-14%

+7%

Realized
Gains on
Securities

Income
Taxes

3.06

3.0
2007

Source: FDIC.

FDIC Quarterly

2008

2009

2010

2011

2012

2013

2014

2015

Source: FDIC.

15

2015, Volume 9, No. 3

(up $648.5 million, or 8.4 percent). Full-time employees
at community banks totaled 442,041 in second quarter 2015, up 9,881 (2.3 percent) from the year earlier.
Meanwhile, the number of full-time employees declined
0.6 percent for noncommunity banks. Average assets
per employee at community banks were $4.7 million
during the second quarter 2015, up from $4.5 million in
second quarter 2014.

Community Banks Increased Holdings of
Long-Term Assets
Long-term assets represented 34.1 percent of total assets
for community banks during second quarter 2015, up
from 33.7 percent in the previous quarter.1 Long-term
assets at community banks exceeded the 25.8 percent
held by the banking industry and the 24.5 percent for
noncommunity banks. For the past 12 out of 15 consecutive quarters, community banks have increased their
holdings of long-term assets. Meanwhile, long-term
funding has not grown at the same rate. This imbalance
may lead to an increase in interest rate risk. A rise in
short-term interest rates may cause funding costs to rise
at a faster rate than long-term asset yields, resulting in
NIM compression.

Loan Balances Increased From the Previous Quarter
and the Year Before
Community banks held $1.4 trillion in loan balances
during the second quarter of 2015, up $36.8 billion
(2.7 percent) from the previous quarter. All major
loan categories increased from the first quarter, led
by nonfarm nonresidential loans (up $8.5 billion, or
2.1 percent), 1-to-4 family residential mortgages (up
$6.8 billion, or 1.8 percent), commercial and industrial
loans (up $5.4 billion, or 2.9 percent), agricultural
production loans (up $3.6 billion, or 8 percent), and
construction and development loans (up $3.1 billion,
or 3.7 percent). The 12-month growth rate in loan
balances was 8.8 percent, almost twice the rate
of noncommunity banks (4.8 percent). All major
loan categories increased from the year earlier, with
construction and development having the largest
annual growth rate (14.1 percent).

Noninterest Expense Rose During the
Current Quarter
Noninterest expense for community banks totaled
$15.1 billion in the second quarter of 2015, up
$1 billion (7.1 percent) from the same 2014 quarter.
While noninterest expense increased for community
banks, it declined for noncommunity banks (down
$1.4 billion, or 1.6 percent). Almost two out of every
three community banks (67 percent) increased their
noninterest expense from the year earlier. Close to
65 percent of the annual increase in noninterest
expense was from higher salary and employee benefits
Long-term assets are loans and debt securities with remaining
maturities or repricing intervals of over five years.
1

Chart 3

Chart 4
Noncurrent Loan Rates for FDIC-Insured Community Banks

Change in Loan Balances and Unused Commitments
Billions of Dollars

FDIC-Insured Community Banks

Percent of Loan Portfolio Noncurrent
16
C&D Loans

28.4

14

Change 2Q 2015 vs. 2Q 2014
Change 2Q 2015 vs. 1Q 2015

22.9

12
10

16.1

14.1

8

10.9
8.5
5.4

6.8

5.4
3.1

Nonfarm
Nonresidential
RE

C&I
Loans

Source: FDIC.

FDIC Quarterly

Nonfarm Nonresidential RE
1-to-4 Family RE
C&I Loans
Home Equity
Credit Cards

1-to-4
Family
Residential
RE

C&D
Loans

6.4
3.6 3.0

1.6

Agricultural Loans to
Production Individuals
Loans

Loan Balances

6

7.8

3.6

4
1.0

Home
Equity

0.7
CRE & C&D

2

C&I
Loans

0
2007

Unused
Commitments

2008

2009

2010

2011

2012

2013

2014

2015

Source: FDIC.

16

2015, Volume 9, No. 3

Quarterly Banking Profile
quarter 2015. The improvement was the result of a
decline in noncurrent loan balances. The noncurrent
loan rate was 1.23 percent in second quarter 2015,
down from 1.32 percent in the previous quarter and
1.54 percent the year earlier. It remains 55 basis points
below the noncommunity banks’ rate of 1.78 percent.
All major loan categories at community banks had
lower noncurrent loan rates from second quarter 2014,
with construction and development posting the largest decline (down 121 basis points). The quarterly net
charge-off rate for community banks was 0.14 percent,
down 6 basis points from the 2014 quarter. All major
loan categories had a decline in the net charge-off rate
from the year before, with construction and development having the largest decline (down 13 basis points).

Community Banks Grew Small Loans to Businesses
Small loans to businesses totaled $298.4 billion in
the second quarter, up $5.2 billion (1.8 percent) from
the previous quarter, outperforming noncommunity
banks (up $2.3 billion, or 0.6 percent).2 More than
75 percent of the quarterly increase was led by agricultural production loans (up $2.1 billion, or 8.1 percent),
and commercial and industrial loans (up $1.9 billion, or
2.1 percent). The year-over-year increase of $9.8 billion
(3.4 percent) was led by commercial and industrial
loans (up $4.4 billion, or 4.9 percent), and nonfarm
nonresidential loans (up $2.7 billion, or 1.8 percent).
Community banks continued to hold 44 percent of all
small loans to businesses.

Asset Quality Indicators Continued to Improve

One Community Bank Failed in the Second Quarter

Noncurrent loan and lease balances totaled
$17.3 billion during the second quarter, down
$3.3 billion (16 percent) from second quarter 2014.
Close to 58 percent of community banks reduced their
noncurrent loan and lease balances from the year-ago
quarter. The coverage ratio (loan loss reserves relative to noncurrent loans) increased from 96.4 percent
in second quarter 2014 to 108.6 percent in second

The number of FDIC-insured community banks totaled
5,881 at the end of second quarter 2015, down 65 banks
from the previous quarter. One community bank failed
during the quarter.
Author:

Benjamin Tikvina, Financial Analyst
Division of Insurance and Research
(202) 898-6578

Small loans to businesses consist of loans to commercial borrowers
up to $1 million and farm loans up to $500,000.
2

FDIC Quarterly

17

2015, Volume 9, No. 3

TABLE I-B. Selected Indicators, FDIC-Insured Community Banks
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�������������������������������������������������������������������������������������
Percentage of unprofitable institutions (%)��������������������������������������������������������������������

2015*
0.99
8.90
10.71
1.21
0.12
3.20
3.56
9.98
5,881
5.29

2014*
0.93
8.49
10.59
1.51
0.18
0.57
3.59
1.22
6,162
6.98

2014
0.93
8.46
10.57
1.34
0.21
2.31
3.61
4.98
6,037
6.39

2013
0.90
8.28
10.44
1.73
0.32
0.33
3.59
14.61
6,306
8.40

2012
0.83
7.68
10.18
2.26
0.58
2.25
3.67
56.25
6,541
11.15

2011
0.55
5.19
9.98
2.84
0.87
1.60
3.74
207.82
6,798
16.34

2010
0.21
2.07
9.57
3.25
1.11
-2.26
3.71
211.45
7,014
22.16

* Through June 30, ratios annualized where appropriate. Asset growth rates are for 12 months ending June 30.

TABLE II-B. Aggregate Condition and Income Data, FDIC-Insured Community Banks
2nd Quarter
2015
5,881
442,041

1st Quarter
2015
5,946
439,098

2nd Quarter
2014
6,162
447,512

%Change
2Q14-2Q15
-4.6
-1.2

$2,085,064
1,064,908
373,635
407,566
87,779
50,050
193,610
60,309
2,152
48,758
35,000
568
1,402,017
18,808
1,383,209
443,577
7,747
13,584
236,948

$2,070,579
1,040,167
361,797
402,196
85,267
49,366
190,191
58,875
1,982
45,270
33,417
553
1,367,365
18,935
1,348,431
445,436
8,380
12,810
255,521

$2,020,416
1,003,597
354,000
392,067
79,527
47,796
184,741
56,954
1,817
43,641
28,566
556
1,316,942
19,530
1,297,412
457,932
9,999
12,489
242,583

3.2
6.1
5.5
4.0
10.4
4.7
4.8
5.9
18.4
11.7
22.5
2.0
6.5
-3.7
6.6
-3.1
-22.5
8.8
-2.3

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

2,085,064
1,708,626
1,708,188
438
67,206
1,308,315
127,406
524
15,632
232,876
232,758

2,070,579
1,708,695
1,708,215
480
65,596
1,313,556
114,748
458
15,641
231,036
230,918

2,020,416
1,662,652
1,662,430
222
56,219
1,302,554
118,924
420
14,822
223,598
223,451

3.2
2.8
2.8
96.9
19.5
0.4
7.1
24.8
5.5
4.1
4.2

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���������������������������������������������������������������������������������������
First Half
INCOME DATA
2015
Total interest income�������������������������������������������������������������������
$38,221
Total interest expense�����������������������������������������������������������������
4,361
Net interest income��������������������������������������������������������������
33,861
Provision for loan and lease losses��������������������������������������������
1,125
Total noninterest income�������������������������������������������������������������
9,899
Total noninterest expense�����������������������������������������������������������
29,847
Securities gains (losses)�������������������������������������������������������������
358
Applicable income taxes�������������������������������������������������������������
2,956
Extraordinary gains, net��������������������������������������������������������������
25
Total net income (includes minority interests)���������������������
10,215
		
Bank net income������������������������������������������������������������
10,199
Net charge-offs����������������������������������������������������������������������������
848
Cash dividends����������������������������������������������������������������������������
4,673
Retained earnings�����������������������������������������������������������������������
5,526
Net operating income�����������������������������������������������������������
9,909

8,196
17,318
9,926
189,057
1,933,615
95,897
281,984
247,863
14,580
58,250
First Half
2014
$37,564
4,557
33,007
1,129
8,752
29,023
279
2,660
8
9,233
9,223
1,182
4,378
4,846
9,009

9,850
18,085
10,072
190,950
1,920,810
85,201
259,657
247,271
14,136
57,564
2nd Quarter
2015
$19,353
2,189
17,165
581
5,094
15,131
117
1,404
22
5,282
5,275
495
2,482
2,793
5,166

8,943
20,261
11,100
201,574
1,864,324
87,037
242,441
244,015
15,345
48,884
2nd Quarter
2014
$19,009
2,275
16,733
599
4,551
14,629
139
1,370
4
4,830
4,824
643
2,321
2,503
4,717

(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��������������������������������������������������������������������������������������������������������

%Change
1.7
-4.3
2.6
-0.4
13.1
2.8
28.6
11.1
219.3
10.6
10.6
-28.3
6.7
14.0
10.0

-8.4
-14.5
-10.6
-6.2
3.7
10.2
16.3
1.6
-5.0
19.2
%Change
2Q14-2Q15
1.8
-3.8
2.6
-2.9
11.9
3.4
-16.0
2.5
488.8
9.4
9.4
-23.1
6.9
11.6
9.5



FDIC Quarterly

18

2015, Volume 9, No. 3

Quarterly Banking Profile
TABLE II-B. Aggregate Condition and Income Data, FDIC-Insured Community Banks
Prior Periods Adjusted for Mergers
2nd Quarter
2015
5,881
442,041

1st Quarter
2015
5,881
438,267

2nd Quarter
2014
5,881
438,615

%Change
2Q14-2Q15
0.0
0.8

$2,085,064
1,064,908
373,635
407,566
87,779
50,050
193,610
60,309
2,152
48,758
35,000
568
1,402,017
18,808
1,383,209
443,577
7,747
13,584
236,948

$2,069,371
1,040,610
366,881
399,032
84,660
49,001
188,245
58,676
2,111
45,147
33,104
549
1,365,233
18,862
1,346,372
445,553
8,362
12,763
256,321

$1,978,461
982,022
350,735
379,175
76,928
46,437
177,552
57,336
2,161
43,383
29,274
536
1,289,030
19,175
1,269,855
449,247
9,986
11,594
237,779

5.4
8.4
6.5
7.5
14.1
7.8
9.0
5.2
-0.4
12.4
19.6
5.8
8.8
-1.9
8.9
-1.3
-22.4
17.2
-0.3

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

2,085,064
1,708,626
1,708,188
438
67,206
1,308,315
127,406
524
15,632
232,876
232,758

2,069,371
1,704,058
1,703,606
452
65,153
1,311,494
117,594
438
15,778
231,503
231,386

1,978,461
1,627,072
1,626,668
404
58,303
1,276,875
117,527
451
14,543
218,867
218,752

5.4
5.0
5.0
8.3
15.3
2.5
8.4
16.2
7.5
6.4
6.4

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���������������������������������������������������������������������������������������
First Half
INCOME DATA
2015
Total interest income�������������������������������������������������������������������
$38,221
Total interest expense�����������������������������������������������������������������
4,361
Net interest income��������������������������������������������������������������
33,861
Provision for loan and lease losses��������������������������������������������
1,125
Total noninterest income�������������������������������������������������������������
9,899
Total noninterest expense�����������������������������������������������������������
29,847
Securities gains (losses)�������������������������������������������������������������
358
Applicable income taxes�������������������������������������������������������������
2,956
Extraordinary gains, net��������������������������������������������������������������
25
Total net income (includes minority interests)���������������������
10,215
		
Bank net income������������������������������������������������������������
10,199
Net charge-offs����������������������������������������������������������������������������
848
Cash dividends����������������������������������������������������������������������������
4,673
Retained earnings�����������������������������������������������������������������������
5,526
Net operating income�����������������������������������������������������������
9,909

8,196
17,318
9,926
189,057
1,933,615
95,897
281,984
247,863
14,580
58,250
First Half
2014
$36,302
4,441
31,861
1,158
8,569
28,030
276
2,537
8
8,988
8,979
1,225
4,262
4,717
8,765

9,842
18,157
10,037
191,477
1,920,052
87,941
275,399
246,097
14,136
57,289
2nd Quarter
2015
$19,353
2,189
17,165
581
5,094
15,131
117
1,404
22
5,282
5,275
495
2,482
2,793
5,166

9,152
20,626
11,145
197,783
1,826,640
86,318
250,804
235,315
13,085
45,097
2nd Quarter
2014
$18,374
2,218
16,155
604
4,462
14,122
137
1,307
4
4,726
4,720
659
2,265
2,455
4,614

(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��������������������������������������������������������������������������������������������������������

%Change
5.3
-1.8
6.3
-2.8
15.5
6.5
29.8
16.5
219.3
13.6
13.6
-30.8
9.6
17.1
13.0

-10.4
-16.0
-10.9
-4.4
5.9
11.1
12.4
5.3
11.4
29.2
%Change
2Q14-2Q15
5.3
-1.3
6.2
-3.7
14.2
7.1
-14.4
7.4
488.8
11.8
11.8
-24.9
9.6
13.8
12.0



FDIC Quarterly

19

2015, Volume 9, No. 3

TABLE III-B. Aggregate Condition and Income Data by Geographic Region, FDIC-Insured Community Banks
Geographic Regions*

Second Quarter 2015
(dollar figures in millions)

All Community Banks
Number of institutions reporting�����������������������������������
5,881
Total employees (full-time equivalent)�������������������������
442,041

New York
689
87,841

Atlanta
727
58,725

Chicago
1,301
93,081

Kansas City
1,515
71,432

Dallas
San Francisco
1,261
388
96,420
34,542

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

$2,085,064
1,064,908
373,635
407,566
87,779
50,050
193,610
60,309
2,152
48,758
35,000
568
1,402,017
18,808
1,383,209
443,577
7,747
13,584
236,948

$535,817
312,923
125,162
109,905
16,448
16,509
45,782
12,841
468
529
10,772
156
382,691
4,425
378,266
101,685
1,087
4,434
50,345

$257,140
139,642
45,722
59,843
15,654
7,986
20,634
7,933
141
1,271
2,697
95
172,083
2,436
169,647
50,331
2,041
1,392
33,728

$385,849
194,172
71,812
70,365
11,659
11,666
35,776
12,150
435
7,460
6,057
62
255,554
3,702
251,852
85,982
1,591
2,189
44,235

$325,013
145,722
48,294
48,190
11,218
4,464
31,954
9,598
464
27,418
5,336
31
219,997
3,069
216,928
71,531
1,179
1,706
33,669

$409,545
185,188
61,688
75,386
25,731
4,643
42,106
13,805
320
9,478
7,372
123
257,826
3,476
254,350
100,457
1,416
2,707
50,616

$171,701
87,260
20,957
43,877
7,069
4,781
17,357
3,983
324
2,601
2,765
101
113,866
1,700
112,166
33,590
433
1,156
24,355

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

2,085,064
1,708,626
1,708,188
438
67,206
1,308,315
127,406
524
15,632
232,876
232,758

535,817
422,752
422,406
345
22,606
314,878
47,095
308
5,376
60,287
60,235

257,140
213,738
213,686
52
7,747
164,369
13,214
106
1,733
28,348
28,330

385,849
319,289
319,272
17
11,359
259,832
20,457
49
2,719
43,335
43,313

325,013
265,893
265,893
0
9,888
212,380
21,228
4
1,895
35,994
35,993

409,545
343,831
343,831
0
10,070
254,818
18,703
7
2,435
44,568
44,543

171,701
143,123
143,100
24
5,537
102,038
6,708
51
1,474
20,345
20,343

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�������������������������������������

8,196
17,318
9,926
189,057
1,933,615
95,897
281,984
247,863
14,580
58,250

2,254
5,976
2,582
56,587
499,411
37,562
66,664
54,122
3,200
18,164

1,158
2,644
1,661
21,581
235,923
10,270
31,053
9,714
529
8,809

1,599
3,350
2,641
33,602
357,276
14,533
48,603
66,028
6,106
9,096

1,161
1,837
1,145
23,441
302,822
14,970
43,943
68,908
816
7,839

1,682
2,570
1,123
37,849
378,165
14,463
49,288
40,890
616
9,938

342
940
774
15,997
160,017
4,098
42,433
8,201
3,313
4,405

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

$19,353
2,189
17,165
581
5,094
15,131
117
1,404
22
5,282
5,275
495
2,482
2,793
5,166

$4,751
687
4,065
219
951
3,514
47
423
0
907
905
196
249
656
872

$2,442
277
2,166
44
619
2,063
9
136
22
572
570
62
198
372
543

$3,522
391
3,131
88
1,248
2,945
24
232
0
1,138
1,136
91
559
577
1,119

$3,062
350
2,712
84
803
2,280
15
184
0
983
983
53
610
373
969

$3,950
363
3,587
126
968
3,030
18
217
0
1,201
1,200
87
616
584
1,186

$1,625
121
1,503
20
506
1,301
4
212
0
480
480
6
249
231
477

* See Table V-A (page 11) for explanations.

FDIC Quarterly

20

2015, Volume 9, No. 3

Quarterly Banking Profile
Table IV-B. Second Quarter 2015, FDIC-Insured Community Banks
All Community Banks
2nd Quarter
2015
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����������������������������������������������������������������
Net interest income to operating revenue����������������������
% of unprofitable institutions������������������������������������������
% of institutions with earnings gains������������������������������

4.03
0.46
3.57
0.98
2.92
0.11
1.00
1.29
1.02
9.11
0.14
117.54
67.66
77.11
5.88
58.61

1st Quarter
2015

Second Quarter 2015, Geographic Regions*
New York

4.00
0.46
3.54
0.91
2.89
0.11
0.92
1.25
0.96
8.62
0.10
154.63
68.40
78.23
5.89
62.73

3.85
0.56
3.30
0.72
2.66
0.17
0.66
1.00
0.68
6.09
0.21
111.83
69.71
81.04
7.26
54.57

Atlanta

Chicago

4.17
0.47
3.70
0.97
3.23
0.07
0.85
1.11
0.89
8.07
0.15
72.02
73.66
77.78
9.08
57.77

3.95
0.44
3.51
1.30
3.06
0.09
1.16
1.42
1.18
10.52
0.14
96.65
66.97
71.50
6.53
58.34

Kansas City

Dallas

4.05
0.46
3.58
0.99
2.81
0.10
1.19
1.44
1.21
10.91
0.10
157.38
64.51
77.16
3.70
61.12

4.19
0.38
3.81
0.95
2.97
0.12
1.16
1.39
1.18
10.80
0.14
144.51
66.22
78.75
4.68
55.99

San Francisco
4.10
0.31
3.79
1.19
3.06
0.05
1.12
1.63
1.13
9.54
0.02
355.00
64.45
74.83
7.73
67.01

Table V-B. First Half 2015, FDIC-Insured Community Banks
All Community Banks
First Half
2015
Performance ratios (%)
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����������������������������������������������������������������
Net interest income to operating revenue����������������������
% of unprofitable institutions������������������������������������������
% of institutions with earnings gains������������������������������

4.02
0.46
3.56
0.96
2.91
0.11
0.96
1.28
0.99
8.90
0.12
132.69
67.86
77.38
5.29
63.08

First Half
2014

First Half 2015, Geographic Regions*
New York

4.09
0.50
3.59
0.88
2.91
0.11
0.90
1.19
0.93
8.49
0.18
95.57
69.17
79.04
6.98
55.99

3.86
0.56
3.30
0.71
2.63
0.16
0.67
1.05
0.71
6.36
0.17
133.71
69.21
81.32
6.97
58.93

Atlanta
4.18
0.48
3.70
0.96
3.23
0.09
0.79
1.08
0.83
7.46
0.14
91.83
73.82
78.04
8.80
61.62

Chicago
3.94
0.44
3.50
1.29
3.05
0.08
1.10
1.42
1.12
10.03
0.14
92.39
67.16
71.55
5.69
63.72

Kansas City

Dallas

4.02
0.46
3.56
0.98
2.80
0.09
1.16
1.43
1.19
10.78
0.07
208.24
64.68
77.23
3.04
65.81

4.18
0.39
3.79
0.92
2.96
0.13
1.13
1.35
1.14
10.53
0.13
160.38
66.74
79.22
3.73
60.59

San Francisco
4.03
0.31
3.72
1.13
3.03
0.04
1.06
1.53
1.07
9.04
0.02
275.89
65.80
75.42
8.25
68.56

* See Table V-A (page 11) for explanations.

FDIC Quarterly

21

2015, Volume 9, No. 3

Table VI-B. Loan Performance, FDIC-Insured Community Banks
Geographic Regions*
June 30, 2015

All Community Banks

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

0.55
0.54
0.38
0.21
0.43
0.86
0.51
1.64
1.64
1.63
0.38
0.58

0.53
0.42
0.40
0.16
0.46
0.79
0.39
2.88
2.19
2.90
0.45
0.59

0.67
0.70
0.46
0.21
0.42
1.03
0.56
1.29
1.29
1.29
0.31
0.67

0.63
0.62
0.41
0.40
0.50
0.96
0.55
1.03
1.04
1.03
0.39
0.63

0.51
0.58
0.34
0.28
0.34
0.74
0.58
0.98
2.70
0.89
0.44
0.53

0.60
0.47
0.37
0.26
0.42
0.99
0.59
1.97
1.08
1.99
0.29
0.65

0.28
0.49
0.20
0.05
0.24
0.49
0.33
0.57
0.85
0.54
0.26
0.30

Percent of Loans Noncurrent**
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����������������������������������������������������������

1.33
2.14
1.20
0.45
0.80
1.59
1.02
0.64
0.88
0.63
1.00
1.24

1.57
2.34
1.41
0.25
0.94
2.09
1.04
0.77
1.17
0.75
4.33
1.56

1.66
3.77
1.46
0.87
0.72
1.45
1.07
0.91
0.49
0.91
0.64
1.54

1.47
2.40
1.37
0.93
0.86
1.71
1.06
0.43
0.81
0.41
0.41
1.31

0.91
1.81
1.03
0.28
0.41
0.95
1.01
0.44
1.06
0.41
0.47
0.84

1.05
1.19
0.90
0.83
0.65
1.24
1.02
0.78
0.68
0.79
0.52
1.00

0.86
1.68
0.76
0.24
0.77
0.98
0.84
0.36
0.69
0.33
0.53
0.83

Percent of Loans Charged-Off (net, YTD)
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����������������������������������������������������������

0.08
0.02
0.09
0.03
0.13
0.10
0.19
0.69
4.24
0.56
0.13
0.12

0.13
0.19
0.19
0.02
0.15
0.10
0.24
0.86
4.13
0.74
0.15
0.17

0.11
0.15
0.12
0.09
0.11
0.09
0.15
0.56
1.18
0.55
0.18
0.14

0.10
0.08
0.07
0.05
0.21
0.15
0.20
0.52
3.75
0.39
0.14
0.14

0.02
-0.32
0.06
-0.01
0.08
0.06
0.12
0.64
9.38
0.21
0.05
0.07

0.05
0.01
0.03
0.03
0.05
0.09
0.24
0.81
1.34
0.80
0.14
0.13

-0.05
-0.13
-0.04
0.00
-0.03
-0.03
0.11
0.59
2.13
0.44
0.45
0.02

Loans Outstanding (in billions)
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����������������������������������������������������������

$1,064.9
87.8
407.6
84.7
50.0
373.6
193.6
60.3
2.2
58.2
83.8
1,402.6

$312.9
16.4
109.9
43.1
16.5
125.2
45.8
12.8
0.5
12.4
11.3
382.8

$139.6
15.7
59.8
6.2
8.0
45.7
20.6
7.9
0.1
7.8
4.0
172.2

$194.2
11.7
70.4
14.1
11.7
71.8
35.8
12.1
0.4
11.7
13.5
255.6

$145.7
11.2
48.2
7.2
4.5
48.3
32.0
9.6
0.5
9.1
32.8
220.0

$185.2
25.7
75.4
6.3
4.6
61.7
42.1
13.8
0.3
13.5
16.8
257.9

$87.3
7.1
43.9
7.8
4.8
21.0
17.4
4.0
0.3
3.7
5.4
114.0

Memo: Unfunded Commitments (in millions)
Total Unfunded Commitments���������������������������������������������
Construction and development: 1-4 family residential��
Construction and development: CRE and other�����������
Commercial and industrial��������������������������������������������

281,984
21,537
50,027
87,352

66,664
4,594
14,875
20,402

31,053
3,810
7,268
9,294

48,603
2,345
7,276
17,742

43,943
2,567
5,595
14,060

49,288
6,298
11,370
16,903

42,433
1,923
3,643
8,951

* See Table V-A (page 11) for explanations.
** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.

FDIC Quarterly

22

2015, Volume 9, No. 3

Quarterly Banking Profile
INSURANCE FUND INDICATORS
■
■
■

DIF Reserve Ratio Rises 3 Basis Points to 1.06 Percent
Insured Deposit Growth Was Flat in Second Quarter
One Institution Fails During the Second Quarter

Total assets of the 6,348 FDIC-insured commercial
banks and savings institutions were nearly unchanged,
declining by $24.7 billion (0.2 percent) from the previous quarter. Total deposits decreased by $25.8 billion
(0.2 percent), domestic deposits increased by
$8.3 billion (0.1 percent), and foreign office deposits
decreased by $34.1 billion (2.5 percent). Domestic
noninterest-bearing deposits increased by $45.4 billion
(1.5 percent), savings and interest-bearing checking
accounts decreased by $35.1 billion (0.6 percent), and
time deposits decreased by $2 billion (0.1 percent).
Domestic deposits funded 67.2 percent of industry assets
at the end of the second quarter. Federal Home Loan
Bank advances increased by $40.7 billion (9.4 percent),
with most of the increase coming from borrowings
maturing in one year or less. Federal funds purchased
increased by $5.8 billion (22.2 percent) while securities sold under agreements to repurchase decreased by
$10.1 billion (3.5 percent).

The Deposit Insurance Fund (DIF) increased by
3.5 percent ($2.3 billion) during the second quarter
to $67.6 billion (unaudited). Assessment income of
$2.3 billion and a negative provision for insurance
losses of $317 million were the largest sources of the
increase. Interest earned and other revenue added
$116 million to the DIF, while operating expenses
and unrealized losses on securities reduced the fund
by $468 million. The DIF’s reserve ratio rose to
1.06 percent on June 30, 2015, from 1.03 percent at
March 31, 2015, and 0.84 percent four quarters ago.
The June 30, 2015, reserve ratio is the highest for the
DIF since March 31, 2008, when the reserve ratio was
1.19 percent. One FDIC-insured institution with total
assets of $90 million failed during the second quarter of
2015, at an estimated cost to the DIF of $17 million.
Effective April 1, 2011, the deposit insurance assessment base changed to average consolidated total assets
minus average tangible equity.1 Revisions to insurance
assessment rates and risk-based pricing rules for large
banks (banks with assets greater than $10 billion) also
became effective on that date.2 Table 1 shows the distribution of the assessment base by institution asset size
category as of the second quarter.

Estimated insured deposits (including U.S. branches
of foreign banks) increased by only 0.1 percent
($6.2 billion) during the quarter to $6.4 trillion. Over
the past four quarters, estimated insured deposits
increased by 4.1 percent ($248.7 billion). For institutions existing as of March 31, 2015, and June 30,
2015, insured deposits increased during the quarter at
2,469 institutions (39 percent), decreased at 3,858 institutions (61 percent), and remained unchanged at
29 institutions.

There is an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under Dodd-Frank.
2
The fourth quarter 2010 Quarterly Banking Profile includes a more
detailed explanation of these changes.
1

Table 1

Distribution of the Assessment Base for FDIC-Insured Institutions*
by Asset Size
Data as of June 30, 2015
Asset Size
Less Than $1 Billion
$1 - $10 Billion
$10 - $50 Billion
$50 - $100 Billion
Over $100 Billion
Total

Number of
Institutions
5,646
591
74
14
23
6,348

Percent of
Assessment Base**
Total Institutions
($ Bil.)
88.9
$1,157.9
9.3
1,431.5
1.2
1,466.6
0.2
932.0
0.4
8,566.6
100.0
13,554.5

Percent of
Base
8.5
10.6
10.8
6.9
63.2
100.0

* Excludes 9 insured U.S. branches of foreign banks reporting a combined assessment base of $49.1 billion.
** Average consolidated total assets minus average tangible equity, with adjustments for banker’s banks and custodial banks.

FDIC Quarterly

23

2015, Volume 9, No. 3

Dodd-Frank requires that, for at least five years, the
FDIC must make available to the public the reserve
ratio and the Designated Reserve Ratio (DRR) using
both estimated insured deposits and the new assessment base. As of June 30, 2015, the FDIC reserve ratio
would have been 0.50 percent using the new assessment
base (compared to 1.06 percent using estimated insured

FDIC Quarterly

deposits), and the 2 percent DRR using estimated
insured deposits would have been 0.93 percent using
the new assessment base.
Author:

24

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

2015, Volume 9, No. 3

Quarterly Banking Profile
Table I-C. Insurance Fund Balances and Selected Indicators
Deposit Insurance Fund*
2nd
1st
4th
3rd
Quarter
Quarter
Quarter
Quarter
2014
2014
2013
2013
$48,893
$47,191
$40,758
$37,871

2nd
Quarter
2015
$65,296

1st
Quarter
2015
$62,780

4th
Quarter
2014
$54,320

3rd
Quarter
2014
$51,059

2nd
Quarter
2013
$35,742

1st
Quarter
2013
$32,958

4th
Quarter
2012
$25,224

3rd
Quarter
2012
$22,693

2nd
Quarter
2012
$15,292

2,328

2,189

2,030

2,009

2,224

2,393

2,224

113

60

70

80

87

45

23

2,339

2,526

2,645

2,937

2,833

2,933

34

54

-9

66

-8

0
434

0
396

0
408

0
406

0
428

0
422

81

302
436

156
298

0
439

0
436

0
469

0
442

0
407

-317

-426

-6,787

-1,663

-204

348

-4,588

-539

-33

-499

-3,344

-84

-807

3

6

-43

6

6

9

9

46

51

55

1,878

57

4,095

-34
2,293

231
2,516

24
8,460

-91
3,261

73
2,166

25
1,702

-277
6,433

71
2,887

-96
2,129

30
2,784

-22
7,734

7
2,531

-108
7,401

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

67,589

65,296

62,780

54,320

51,059

48,893

47,191

40,758

37,871

35,742

32,958

25,224

22,693

32.37

Reserve Ratio (%)�������������

1.06

33.55

33.03

33.27

34.82

36.79

43.19

61.58

66.88

133.73

178.67

222.85

479.49

1.03

1.01

0.89

0.84

0.80

0.79

0.68

0.64

0.60

0.45

0.35

0.32

6,350,878

6,344,650

6,203,594

6,134,428

6,102,158

6,120,778

6,010,853

5,967,558

5,951,124

5,999,614

7,405,043

7,248,466

7,081,206

4.08

3.66

3.21

2.80

2.54

2.02

-18.83

-17.67

-15.96

-14.67

6.19

7.32

8.55

Domestic Deposits����������� 10,629,335 10,616,332 10,408,061 10,213,072 10,099,337
Percent change from
   four quarters earlier�������
5.25
6.56
5.93
6.04
7.16

9,962,453

9,825,399

9,631,580

9,424,503

9,454,658

9,474,585

9,084,803

8,937,725

5.37

3.70

6.02

5.45

6.85

7.88

6.55

8.40

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

Estimated Insured
Deposits**��������������������������
Percent change from
   four quarters earlier�������

Assessment Base***�������� 13,603,595 13,526,063 13,337,980 13,107,287 12,905,394 12,797,180 12,743,864 12,527,522 12,485,749 12,433,319 12,434,981 12,276,147 12,159,353
Percent change from
   four quarters earlier�������
5.41
5.70
4.66
4.63
3.36
2.93
2.48
2.05
2.68
2.68
2.67
2.35
2.23
Number of Institutions
Reporting�����������������������

6,357

6,428

6,518

6,598

6,665

6,739

6,821

0.79
0.60

0.64

0.80

0.84

1.03

1.06

0.89

0.68

0.45
0.32

6/12

0.35

9/12 12/12 3/13

6/13

9/13 12/13 3/14

6/14

9/14 12/14

3/15

6,949

7,028

7,092

7,190

7,254

Deposit Insurance Fund Balance
and Insured Deposits
($ Millions)

DIF Reserve Ratios
Percent of Insured Deposits
1.01

6,900

6/15

DIF
Balance

DIF-Insured
Deposits

6/12

$22,693

$7,081,206

9/12

25,224

7,248,466

12/12

32,958

7,405,043
5,999,614

3/13

35,742

6/13

37,871

5,951,124

9/13

40,758

5,967,558

12/13

47,191

6,010,853

3/14

48,893

6,120,778

6/14

51,059

6,102,158

9/14

54,320

6,134,428

12/14

62,780

6,203,594

3/15

65,296

6,344,650

6/15

67,589

6,350,878

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

2015****
228
$56,503

2014****
354
$110,212

2014
291
$86,712

2013

2012

2011

2010

467
$152,687

651
$232,701

813
$319,432

884
$390,017

Failed Institutions
51
92
Number of institutions����������������������������������������������������������������������
5
12
18
24
157
$11,617
$34,923
Total assets*****�������������������������������������������������������������������������������
$6,389
$1,571
$2,914
$6,044
$92,085
Assisted Institutions
0
0
Number of institutions����������������������������������������������������������������������
0
0
0
0
0
$0
$0
$0
$0
$0
$0
Total assets���������������������������������������������������������������������������������������
$0
* Quarterly financial statement results are unaudited.
** 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.
*** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.
**** Through June 30.
***** Total assets are based on final Call Reports submitted by failed institutions.

FDIC Quarterly

25

2015, Volume 9, No. 3

Table III-C. Estimated FDIC-Insured Deposits by Type of Institution
(dollar figures in millions)
June 30, 2015
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�������������������������������������������������

5,472
3,629
1,027
816

$14,679,237
2,338,296
10,018,816
2,322,125

$9,762,487
1,822,120
6,367,213
1,573,154

$5,648,213
1,329,009
3,534,470
784,734

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

876
429
408
39

1,074,068
693,183
357,332
23,553

823,911
537,813
267,797
18,302

673,715
443,957
214,697
15,061

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

6,348

15,753,305

10,586,399

6,321,928

U.S. Branches of Foreign Banks�������������������������������������������������

9

98,105

42,937

28,951

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

6,357

15,851,410

10,629,335

6,350,878

Other FDIC-Insured Institutions

* Excludes $1.3 trillion in foreign office deposits, which are not FDIC insured.

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range
Quarter Ending March 31, 2015 (dollar figures in billions)
Number of
Annual Rate in Basis Points
Institutions
2.50-5.00
1,572
5.01-7.50
3,039
7.51-10.00
1,064
10.01-15.00
472
15.01-20.00
26
20.01-25.00
208
25.01-30.00
2
30.01-35.00
45
greater than 35.00
0

Percent of Total
Institutions
24.46
47.28
16.55
7.34
0.40
3.24
0.03
0.70
0.00

Amount of
Assessment Base*
$1,592.0
10,295.4
1,034.7
459.8
82.9
51.0
0.4
9.8
0.0

Percent of Total
Assessment Base
11.77
76.12
7.65
3.40
0.61
0.38
0.00
0.07
0.00

* 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

26

2015, Volume 9, No. 3

Quarterly Banking Profile

Notes to Users

The fourth step includes organizations that operate within a
limited geographic scope. This limitation of scope is used as a
proxy measure for a bank’s relationship approach to banking.
Banks that operate within a limited market area have more
ease in managing relationships at a personal level. Under this
step, four criteria are applied to each banking organization.
They include both a minimum and maximum number of total
banking offices, a maximum level of deposits for any one
office, and location-based criteria. The limits on the number
of and deposits per office are gradually adjusted upward over
time. For banking offices, banks must have more than one
office, and the maximum number of offices starts at 40 in 1985
and reaches 75 in 2010. The maximum level of deposits for
any one office is $1.25 billion in deposits in 1985 and $5 billion in deposits in 2010. The remaining geographic limitations
are also based on maximums for the number of states (fixed at
3) and large metropolitan areas (fixed at 2) in which the organization maintains offices. Branch office data are based on the
most recent data from the annual June 30 Summary of Deposits
Survey that are available at the time of publication.
Finally, the definition establishes an asset-size limit, also
adjusted upward over time from $250 million in 1985 to
$1 billion in 2010, below which the limits on banking activi­
ties and geographic scope are waived. This final step acknowledges the fact that most of those small banks that are not
excluded as specialty banks meet the requirements for banking activities and geographic limits in any event.

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.

Tables I-B through VI-B.

Summary of FDIC Research Definition of Community
Banking Organizations

The information presented in Tables I-B through VI-B is
aggregated for all FDIC-insured commercial banks and savings
institutions meeting the criteria for community banks that
were developed for the FDIC’s Community Banking Study,
published in December, 2012: http://fdic.gov/regulations/
resources/cbi/report/cbi-full.pdf.
The determination of which insured institutions are considered community banks is based on five steps.
The first step in defining a community bank is to aggre­gate
all charter-level data reported under each holding company
into a single banking organization. This aggrega­tion applies
both to balance-sheet measures and the number and location
of banking offices. Under the FDIC definition, if the banking
organization is designated as a community bank, every charter reporting under that organization is also considered a
community bank when working with data at the charter
level.
The second step is to exclude any banking organization
where more than 50 percent of total assets are held in certain
specialty banking charters, including: credit card specialists,
consumer nonbank banks, industrial loan compa­nies, trust companies, bankers’ banks, and banks holding 10 percent or more
of total assets in foreign offices.
Once the specialty organizations are removed, the third step
involves including organizations that engage in basic banking
activities as measured by the total loans-to-assets ratio (greater than 33 percent) and the ratio of core depos­its to assets
(greater than 50 percent). Core deposits are defined as nonbrokered deposits in domestic offices. Analysis of the underlying data shows that these thresholds establish meaningful
levels of basic lending and deposit gathering and still allow
for a degree of diversity in how indi­vidual banks construct
their balance sheets.
FDIC Quarterly

Community banks are designated at the level of the banking.
(All charters under designated holding companies are considered community banking charters.)
Exclude: Any organization with:
— No loans or no core deposits
— Foreign Assets ≥ 10% of total assets
— More than 50% of assets in certain specialty banks,
including:
• credit card specialists
• consumer nonbank banks1
• industrial loan companies
• trust companies
• bankers’ banks
Include: All remaining banking organizations with:
— Total assets < indexed size threshold  2
— Total assets ≥ indexed size threshold, where:
• Loan to assets > 33%
• Core deposits to assets > 50%
• More than 1 office but no more than the indexed
­maximum number of offices.3
Consumer nonbank banks are financial institutions with limited charters that can make commercial loans or take deposits, but not both.
2
Asset size threshold indexed to equal $250 million in 1985 and
$1 billion in 2010.
3
Maximum number of offices indexed to equal 40 in 1985 and 75
in 2010.
1

27

2015, Volume 9, No. 3

• Number of large MSAs with offices ≤ 2
• Number of states with offices ≤ 3
• No single office with deposits > indexed maximum
branch deposit size.4

income and expenses of group members. Unless indicated
otherwise, growth rates are not adjusted for mergers or other
changes in the composition of the community bank subgroup.
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.

Tables I-C through IV-C.
A separate set of tables (Tables I-C through IV-C) 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.

ACCOUNTING CHANGES

Extraordinary Items
In January 2015, the FASB issued ASU No. 2015-01,
“Simplifying Income Statement Presentation by Eliminating
the Concept of Extraordinary Items.” This ASU eliminates
from U.S. GAAP the concept of extraordinary items. At
present, ASC Subtopic 225-20, Income Statement –
Extraordinary and Unusual Items (formerly Accounting
Principles Board Opinion No. 30, “Reporting the Results of
Operations”), requires an entity to separately classify, present,
and disclose extraordinary events and transactions. An event
or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its
classification as an extraordinary item. If an event or transaction currently meets the criteria for extraordinary classification, an institution must segregate the extraordinary item
from the results of its ordinary operations and report the
extraordinary item in its income statement as “Extraordinary
items and other adjustments, net of income taxes.”
ASU 2015-01 is effective for fiscal years, and interim periods
within those fiscal years, beginning after December 15, 2015.
Thus, for example, institutions with a calendar year fiscal
year must begin to apply the ASU in their Call Reports for
March 31, 2016. Early adoption of ASU 2015-01 is permitted
provided that the guidance is applied from the beginning of
the fiscal year of adoption. For Call Report purposes, an institution with a calendar year fiscal year must apply the ASU
prospectively, that is, in general, to events or transactions
occurring after the date of adoption. However, an institution
with a fiscal year other than a calendar year may elect to
apply ASU 2015-01 prospectively or, alternatively, it may
elect to apply the ASU retrospectively to all prior calendar
quarters included in the institution’s year-to-date Call Report
income statement that includes the beginning of the fiscal
year of adoption.
After an institution adopts ASU 2015-01, any event or transaction that would have met the criteria for extraordinary classification before the adoption of the ASU should be reported in
“Other noninterest income,” or “Other noninterest expense,”
as appropriate, unless the event or transaction would otherwise
be reportable in the income statement. In addition, consistent
with ASU 2015-01, the agencies plan to remove reference to
the term “extraordinary items” from the income in 2016.
For additional information, institutions should refer to ASU
2015-01, which is available at http://www.fasb.org/jsp/FASB/
Page/SectionPage&cid=1176156316498.

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
accounting requirements of the FFIEC Call Reports. (TFR
­filers began filing Call Reports effective with the quarter ending March 31, 2012.)
All condition and performance ratios represent weighted
averages, i.e., the sum of the individual numerator values
divided by the sum of individual denominator values. 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. For the community bank subgroup, growth rates will reflect changes over time in the
number and identities of institutions designated as community banks, as well as changes in the assets and liabilities, and
Maximum branch deposit size indexed to equal $1.25 billion in 1985
and $5 billion in 2010.
4

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28

2015, Volume 9, No. 3

Quarterly Banking Profile
rately from goodwill, i.e., such existing intangible assets
should not be combined with goodwill.
A bank or savings association that meets the private company
definition in U.S. GAAP is permitted, but not required, to
adopt ASU 2014-18 for Call Report purposes and may choose
to early adopt the ASU, provided it also adopts the private
company goodwill accounting alternative. If a private institution issues U.S. GAAP financial statements and adopts ASU
2014-18, it should apply the ASU’s intangible asset accounting alternative in its Call Report in a manner consistent with
its reporting of intangible assets in its financial statements.
For additional information on the private company
­accounting alternative for identifiable intangible assets,
­institutions should refer to ASU 2014-18, which is available
at http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=
1176156316498.
Private Company Accounting Alternatives, Including Accounting
for Goodwill
In May 2012, the Financial Accounting Foundation, the
independent private sector organization responsible for the
oversight of the FASB, approved the establishment of the
PCC to improve the process of setting accounting standards
for private companies. The PCC is charged with working
jointly with the FASB to determine whether and in what
­circumstances to provide alternative recognition, measurement, disclosure, display, effective date, and transition guidance for private companies reporting under U.S. GAAP.
Alternative guidance for private companies may include modifications or exceptions to otherwise applicable existing U.S.
GAAP standards. The banking agencies have concluded that
a bank or savings association that is a private company, as
defined in U.S. GAAP (as discussed in the next section of
these Supplemental Instructions), is permitted to use private
company accounting alternatives issued by the FASB when
preparing its Call Reports, except as provided in 12 U.S.C.
1831n(a) as described in the following sentence. If the agencies determine that a particular accounting principle within
U.S. GAAP, including a private company accounting alternative, is inconsistent with the statutorily specified supervisory objectives, the agencies may prescribe an accounting
principle for regulatory reporting purposes that is no less
­stringent than U.S. GAAP. In such a situation, an institution
would not be permitted to use that particular private company accounting alternative or other accounting principle within U.S. GAAP for Call Report purposes. The agencies would
provide appropriate notice if they were to disallow any
accounting alternative under the statutory process.
On January 16, 2014, the FASB issued ASU No. 2014-02,
“Accounting for Goodwill,” which is a consensus of the PCC.
This ASU generally permits a private company to elect to
amortize goodwill on a straight-line basis over a period of ten
years (or less than ten years if more appropriate) and apply a
simplified impairment model to goodwill. In addition, if a private company chooses to adopt the ASU’s goodwill accounting alternative, the ASU requires the private company to
make an accounting policy election to test goodwill for
impairment at either the entity level or the reporting unit
level. Goodwill must be tested for impairment when a triggering event occurs that indicates that the fair value of an entity
(or a reporting unit) may be below its carrying amount. In
contrast, U.S. GAAP does not otherwise permit goodwill to

Accounting by Private Companies for Identifiable Intangible Assets
in a Business Combination
In December 2014, the FASB issued ASU No. 2014-18,
“Accounting for Identifiable Intangible Assets in a Business
Combination,” which is a consensus of the Private Company
Council (PCC). This ASU provides an accounting alternative that permits a private company, as defined in U.S.
GAAP (and discussed in a later section of these Supple­
mental Instructions), to simplify the accounting for certain
intangible assets. The accounting alternative applies when a
private company is required to recognize or otherwise consider the fair value of intangible assets as a result of certain
transactions, including when applying the acquisition method
to a business combination under ASC Topic 805, Business
Combinations (formerly FASB Statement No. 141 (revised
2007), “Business Combinations”).
Under ASU 2014-18, a private company that elects the
accounting alternative should no longer recognize separately
from goodwill:
• Customer-related intangible assets unless they are capable
of being sold or licensed independently from the other
assets of a business, and
• Noncompetition agreements.
However, because mortgage servicing rights and core deposit
intangibles are regarded as capable of being sold or licensed
independently, a private company that elects this accounting
alternative must recognize these intangible assets separately
from goodwill, initially measure them at fair value, and subsequently measure them in accordance with ASC Topic 350,
Intangibles–Goodwill and Other (formerly FASB Statement
No. 142, “Goodwill and Other Intangible Assets”).
A private company that elects the accounting alternative in
ASU 2014-18 also must adopt the private company goodwill
accounting alternative described in ASU 2014-02,
“Accounting for Goodwill.” However, a private company that
elects the goodwill accounting alternative in ASU 2014-02 is
not required to adopt the accounting alternative for identifiable intangible assets in ASU 2014-18.
A private company’s decision to adopt ASU 2014-18 must be
made upon the occurrence of the first business combination
(or other transaction within the scope of the ASU) in fiscal
years beginning after December 15, 2015. The effective date
of the private company’s decision to adopt the accounting
alternative for identifiable intangible assets depends on the
timing of that first transaction.
If the first transaction occurs in the private company’s first
fiscal year beginning after December 15, 2015, the adoption
will be effective for that fiscal year’s annual financial reporting period and all interim and annual periods thereafter. If
the first transaction occurs in a fiscal year beginning after
December 15, 2016, the adoption will be effective in the
interim period that includes the date of the transaction and
subsequent interim and annual periods thereafter.
Early application of the intangibles accounting alternative is
permitted for any annual or interim period for which a private
company’s financial statements have not yet been made available for issuance. Customer-related intangible assets and noncompetition agreements that exist as of the beginning of the
period of adoption should continue to be accounted for sepa-

FDIC Quarterly

29

2015, Volume 9, No. 3

be amortized, instead requiring goodwill to be tested for
impairment at the reporting unit level annually and between
annual tests in certain circumstances. The ASU’s goodwill
accounting alternative, if elected by a private company, is
effective prospectively for new goodwill recognized in annual
periods beginning after December 15, 2014, and in interim
periods within annual periods beginning after December 15,
2015. Goodwill existing as of the beginning of the period of
adoption is to be amortized prospectively over ten years (or
less than ten years if more appropriate). The ASU states that
early application of the goodwill accounting alternative is
permitted for any annual or interim period for which a private
company’s financial statements have not yet been made available for issuance.
A bank or savings association that meets the private company
definition in ASU 2014-02, as discussed in the following section of these Supplemental Instructions (i.e., a private institution), is permitted, but not required, to adopt this ASU for
Call Report purposes and may choose to early adopt the
ASU. If a private institution issues U.S. GAAP financial
statements and adopts the ASU, it should apply the ASU’s
goodwill accounting alternative in its Call Report in a manner consistent with its reporting of goodwill in its financial
statements. Thus, for example, a private institution with a
calendar year fiscal year that chooses to adopt ASU 2014-02
must apply the ASU’s provisions in its December 31, 2015,
and subsequent quarterly Call Reports unless early application
of the ASU is elected. If a private institution with a calendar
year fiscal year chooses to early adopt ASU 2014-02 for first
quarter 2015 financial reporting purposes, the institution may
implement the provisions of the ASU in its Call Report for
March 31, 2015. This would require the private institution to
report in its first quarter 2015 Call Report three months’
amortization of goodwill existing as of January 1, 2015, and
the amortization of any new goodwill recognized in the first
three months of 2015. Goodwill amortization expense should
be reported unless the amortization is associated with a discontinued operation, in which case the goodwill amortization
should be included within the results of discontinued operations and reported as “Extraordinary items and other adjustments, net of income taxes.”
For additional information on the private company accounting alternative for goodwill, institutions should refer to ASU
2014-02, which is available at http://www.fasb.org/jsp/FASB/
Page/SectionPage&cid=1176156316498.
Definitions of Private Company and Public Business Entity
According to ASU No. 2014-02, “Accounting for Goodwill,”
a private company is a business entity that is not a public
business entity. ASU No. 2013-12, “Definition of a Public
Business Entity,” which was issued in December 2013, added
this term to the Master Glossary in the Accounting Standards
Codification. This ASU states that a business entity, such as
a bank or savings association, that meets any one of five criteria set forth in the ASU is a public business entity for reporting purposes under U.S. GAAP, including for Call Report
purposes. An institution that is a public business entity is not
permitted to apply the private company goodwill accounting
alternative discussed in the preceding section when preparing
its Call Report.
For additional information on the definition of a public
­business entity, institutions should refer to ASU 2013-12,

FDIC Quarterly

which is available at http://www.fasb.org/jsp/FASB/Page/
SectionPage&cid=1176156316498.
Reporting Certain Government-Guaranteed Mortgage Loans
Upon Foreclosure
In August 2014, the FASB issued Accounting Standards
Update (ASU) No. 2014-14, “Classification of Certain
Government-Guaranteed Mortgage Loans Upon Foreclosure,”
to address diversity in practice for how government-guaranteed mortgage loans are recorded upon foreclosure. The ASU
updates guidance contained 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),
because U.S. GAAP previously did not provide specific guidance on how to categorize or measure foreclosed mortgage
loans that are government guaranteed.
This guidance is applicable to fully and partially governmentguaranteed mortgage loans. Upon foreclosure, the separate
other receivable should be measured based on the amount of
the loan balance (principal and interest) expected to be
recovered from the guarantor. This other receivable should be
reported in “All other assets.” Any interest income earned on
the other receivable would be reported in “Other interest
income.” Other real estate owned would not be recognized by
the institution.
For institutions that are public business entities, as defined
under U.S. GAAP, ASU 2014-14 is effective for fiscal years,
and interim periods within those fiscal years, beginning after
December 15, 2014. For example, institutions with a calendar
year fiscal year that are public business entities must apply the
ASU in their Call Reports beginning March 31, 2015.
However, institutions that are not public business entities
(i.e., that are private companies) are not required to apply the
guidance in ASU 2014-14 until annual periods ending after
December 15, 2015, and interim periods beginning
after December 15, 2015. Thus, institutions with a calendar
year fiscal year that are private companies must apply the
ASU in their December 31, 2015, and subsequent quarterly
Call Reports. Earlier adoption of the guidance in ASU 201414 is permitted if the institution has already adopted the
amendments in ASU No. 2014-04, “Reclassification of
Residential Real Estate Collateralized Consumer Mortgage
Loans Upon Foreclosure.” Entities can elect to apply ASU
2014-14 on either a modified retrospective transition basis or
a prospective transition basis. For additional information,
institutions should refer to ASU 2014-14, which is available
at http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=
1176156316498.
Reclassification of Residential Real Estate Collateralized Consumer
Mortgage Loans Upon Foreclosure
In January 2014, the FASB issued Accounting Standards
Update (ASU) No. 2014-04, “Reclassification of Residential
Real Estate Collateralized Consumer Mortgage Loans upon
Foreclosure,” to address diversity in practice for when certain
loan receivables should be derecognized and the real estate
collateral recognized. The ASU updated guidance contained
in Accounting Standards Codification 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).

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2015, Volume 9, No. 3

Quarterly Banking Profile
Under prior accounting guidance, all loan receivables were
reclassified to other real estate owned (OREO) when the
institution, as creditor, obtained physical possession of the
property, regardless of whether formal foreclosure proceedings
had taken place. The new ASU clarifies when a creditor is
considered to have received physical possession (resulting
from an in-substance repossession or foreclosure) of residential real estate collateralizing a consumer mortgage loan.
Under the new guidance, physical possession for these residential real estate properties is considered to have occurred
and a loan receivable would be reclassified to OREO
only upon:
• The institution obtaining legal title upon completion of a
foreclosure even if the borrower has redemption rights that
provide the borrower with a legal right for a period of time
after foreclosure to reclaim the property by paying certain
amounts specified by law, or
• The completion of a deed in lieu of foreclosure or similar
legal agreement under which the borrower conveys all
interest in the residential real estate property to the institution to satisfy the loan.
Loans secured by real estate other than consumer mortgage
loans collateralized by residential real estate should continue
to be reclassified to OREO when the institution has received
physical possession of a borrower’s real estate, regardless of
whether formal foreclosure proceedings take place.
For institutions that are public business entities, as defined
under U.S. generally accepted accounting principles, ASU
2014-04 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2014. For
example, institutions with a calendar year fiscal year that are
public business entities must apply the ASU in their Call
Reports beginning March 31, 2015. However, institutions
that are not public business entities are not required to apply
the guidance in ASU 2014-04 until annual periods beginning
after December 15, 2014, and interim periods within annual
periods beginning after December 15, 2015. Thus, institutions with a calendar year fiscal year that are not public business entities must apply the ASU in their December 31,
2015, and subsequent quarterly Call Reports. Earlier adoption
of the guidance in ASU 2014-04 is permitted. Entities can
elect to apply the ASU on either a modified retrospective
transition basis or a prospective transition basis. Applying the
ASU on a prospective transition basis should be less complex
for institutions than applying the ASU on a modified retrospective transition basis. Under the prospective transition
method, an institution should apply the new guidance to all
instances where it receives physical possession of residential
real estate property collateralizing consumer mortgage loans
that occur after the date of adoption of the ASU. Under the
modified retrospective transition method, an institution
should apply a cumulative-effect adjustment to residential
consumer mortgage loans and OREO existing as of the beginning of the annual period for which the ASU is effective. As
a result of adopting the ASU on a modified retrospective
basis, assets reclassified from OREO to loans should be measured at the carrying value of the real estate at the date of
adoption while assets reclassified from loans to OREO should
be measured at the lower of the net amount of the loan
receivable or the OREO property’s fair value less costs to sell
at the time of adoption.

FDIC Quarterly

For additional information, institutions should refer to ASU
2014-04, which is available at http://www.fasb.org/jsp/FASB/
Page/SectionPage&cid=1176156316498.
True-Up Liability Under an FDIC Loss-Sharing Agreement
An insured depository institution that acquires a failed
insured institution may enter into a loss-sharing agreement
with the FDIC under which the FDIC agrees to absorb a portion of the losses on a specified pool of the failed institution’s
assets during a specified time period. The acquiring institution
typically records an indemnification asset representing its
right to receive payments from the FDIC for losses during the
specified time period on assets covered under the loss-sharing
agreement.
Since 2009, most loss-sharing agreements have included a
true-up provision that may require the acquiring institution
to reimburse the FDIC if cumulative losses in the acquired
loss-share portfolio are less than the amount of losses claimed
by the institution throughout the loss-sharing period.
Typically, a true-up liability may result because the recovery
period on the loss-share assets (e.g., eight years) is longer
than the period during which the FDIC agrees to reimburse
the acquiring institution for losses on the loss-share portfolio
(e.g., five years).
Consistent with U.S. GAAP and bank guidance for
“Offsetting,” institutions are permitted to offset assets and
­liabilities recognized in the Report of Condition when a
“right of setoff” exists. Under ASC Subtopic 210-20, Balance
Sheet—Offsetting (formerly FASB Interpretation No. 39,
“Offsetting of Amounts Related to Certain Contracts”), in
general, a right of setoff exists when a reporting institution
and another party each owes the other determinable
amounts, the reporting institution has the right to set off the
amounts each party owes and also intends to set off, and the
right of setoff is enforceable at law. Because the conditions
for the existence of a right of offset in ASC Subtopic 210-20
normally would not be met with respect to an indemnification asset and a true-up liability under a loss-sharing agreement with the FDIC, this asset and liability should not be
netted for Call Report purposes. Therefore, institutions
should report the indemnification asset gross (i.e., without
regard to any true-up liability) in Other Assets, and any trueup liability in Other Liabilities.
In addition, an institution should not continue to report
assets covered by loss-sharing agreements after the expiration
of the loss-sharing period even if the terms of the loss-sharing
agreement require reimbursements from the institution to the
FDIC for certain amounts during the recovery period.
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.

31

2015, Volume 9, No. 3

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.
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.
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,
FDIC Quarterly

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 45020 to the methods prescribed in ASC Subtopic 310-10.
Troubled Debt Restructurings and Accounting Standards Update
No. 2011-02 – In April 2011, the FASB issued Accounting
Standards Update (ASU) No. 2011-02, “A Creditor’s
Determination of Whether a Restructuring Is a Troubled
Debt Restructuring,” to provide additional guidance to help
creditors determine whether a concession has been granted to
a borrower and whether a borrower is experiencing financial
difficulties. The guidance is also intended to reduce diversity
in practice in identifying and reporting TDRs. This ASU 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 measure32

2015, Volume 9, No. 3

Quarterly Banking Profile
ment 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 identi­
fication requirement. For additional information, refer to
ASU 2011-02, 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 – refer
to previously published Quarterly Banking Profile notes:
http://www5.fdic.gov/qbp/2011mar/qbpnot.html.
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://www5.fdic.gov/qbp/2011mar/qbpnot.html.
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 Interpre­
tation No. 46(R) (FAS 167), which change the way entities
account for securitizations and special purpose entities—
refer to previously published Quarterly Banking Profile notes:
https://www5.fdic.gov/qbp/2014dec/qbpnot.html.
Accounting Standards Codification – refer to previously published Quarterly Banking Profile notes:
http://www5.fdic.gov/qbp/2011sep/qbpnot.html.

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.”
Common equity tier 1 capital ratio – ratio of common equity
tier 1 capital to risk-weighted assets. Common equity tier 1
capital includes common stock instruments and related surplus, retained earnings, accumulated other comprehensive
income (AOCI), and limited amounts of common equity tier
1 minority interest, minus applicable regulatory adjustments
and deductions. Items that are fully deducted from common
equity tier 1 capital include goodwill, other intangible assets
(excluding mortgage servicing assets) and certain deferred tax
assets; items that are subject to limits in common equity tier 1
capital include mortgage servicing assets, eligible deferred tax
assets, and certain significant investments.
Construction and development loans – includes loans for all
­property types under construction, as well as loans for land
acquisition and development.
Core capital – common equity capital plus noncumulative perpetual preferred stock plus minority interest in consolidated
subsidiaries, less goodwill and other ineligible intangible
assets. The amount of eligible intangibles (including servicing
rights) included in core capital is limited in accordance with
supervisory capital regulations.
Cost of funding earning assets – total interest expense paid on
deposits and other borrowed money as a percentage of average
earning assets.
Credit enhancements – techniques whereby a company attempts
to reduce the credit risk of its obligations. Credit enhancement may be provided by a third party (external credit
enhancement) or by the originator (internal credit enhancement), and more than one type of enhancement may be
associ­ated with a given issuance.
Deposit Insurance Fund (DIF) – the Bank (BIF) and Savings
Association (SAIF) Insurance Funds were merged in 2006 by
the Federal Deposit Insurance Reform Act to form the DIF.
Derivatives notional amount – the notional, or contractual,
amounts of derivatives represent the level of involvement in
the types of derivatives transactions and are not a quantification of market risk or credit risk. Notional amounts represent
the amounts used to calculate contractual cash flows to be
exchanged.
Derivatives credit equivalent amount – the fair value of the
derivative plus an additional amount for potential future
­credit exposure based on the notional amount, the remaining
maturity and type of the contract.

DEFINITIONS (in alphabetical order)

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

FDIC Quarterly

33

2015, Volume 9, No. 3

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 prior to
March 31, 2012.
Goodwill and other intangibles – intangible assets include
­servicing rights, purchased credit card relationships, and other
identifiable intangible assets. Goodwill is the excess of the
purchase price over the fair market value of the net assets
acquired, less subsequent impairment adjustments. Other
intangible assets are recorded at fair value, less subsequent
quarterly amortization and impairment adjustments.
Loans secured by real estate – includes home equity loans,
junior liens secured by 1-4 family residential properties, and
all other loans secured by real estate.
Loans to individuals – includes outstanding credit card balances
and other secured and unsecured consumer loans.
Long-term assets (5+ years) – loans and debt securities with
remaining maturities or repricing intervals of over five years.
Maximum credit exposure – the maximum contractual credit
exposure remaining under recourse arrangements and other
seller-provided credit enhancements provided by the reporting bank to securitizations.
Mortgage-backed securities – certificates of participation in
pools of residential mortgages and collateralized mortgage
obligations issued or guaranteed by government-sponsored or
private enterprises. Also, see “Securities,” below.
Net charge-offs – total loans and leases charged off (removed
from balance sheet because of uncollectibility), less amounts
recovered on loans and leases previously charged off.
Net interest margin – the difference between interest and dividends earned on interest-bearing assets and interest paid to
depositors and other creditors, expressed as a percentage of
average earning assets. No adjustments are made for interest
income that is tax exempt.
Net loans to total assets – loans and lease financing receivables, net of unearned income, allowance and reserves, as a
percent of total assets on a consolidated basis.
Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and extraordinary items. Income taxes subtracted from
operating income have been adjusted to exclude the portion
applicable to securities gains (or losses).
Noncurrent assets – the sum of loans, leases, debt securities,
and other assets that are 90 days or more past d­ue, or in nonaccrual status.
Noncurrent loans & leases – the sum of loans and leases 90 days
or more past due, and loans and leases in nonaccrual status.

Derivatives transaction types:
Futures and forward contracts – contracts in which the
buyer agrees to purchase and the seller agrees to sell, at a
specified future date, a specific quantity of an underlying
variable or index at a specified price or yield. These contracts exist for a variety of variables or indices, (traditional
agricultural or physical commodities, as well as currencies
and interest rates). Futures contracts are standardized and
are traded on organized exchanges which set limits on
counterparty credit exposure. Forward contracts do not
have standardized terms and are traded over the counter.
Option contracts – contracts in which the buyer acquires the
right to buy from or sell to another party some specified
amount of an un­derlying variable or index at a stated price
(strike price) during a period or on a specified future date,
in return for compensation (such as a fee or premium).
The seller is obligated to purchase or sell the variable or
index at the discretion of the buyer of the contract.
Swaps – obligations between two parties to exchange a
series of cash flows at periodic intervals (settlement dates),
for a specified period. The cash flows of a swap are either
fixed, or determined for each settlement date by multiplying the quantity (notional principal) of the underlying
variable or index by specified reference rates or prices.
Except for currency swaps, the notional principal is used
to calculate each payment but is not exchanged.
Derivatives underlying risk exposure – the potential exposure
characterized by the level of banks’ concentration in particular underlying instruments, in general. Exposure can result
from market risk, credit risk, and operational risk, as well as,
interest rate risk.
Domestic deposits to total assets – total domestic office deposits
as a percent of total assets on a consolidated basis.
Earning assets – all loans and other investments that earn
interest or dividend income.
Efficiency ratio – Noninterest expense less amortization of
intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net
operating revenues that are absorbed by overhead expenses,
so that a lower value indicates greater efficiency.
Estimated insured deposits – in general, insured deposits are
total domestic deposits minus estimated uninsured deposits.
Beginning March 31, 2008, for institutions that file Call
Reports, insured deposits are total assessable deposits minus
estimated uninsured deposits. 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

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2015, Volume 9, No. 3

Quarterly Banking Profile
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.
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.

FDIC Quarterly

Risk-based capital groups – definitions:
Capital Ratios Used to Determine Capital Evaluations for
Assessment Purposes, Effective January 1, 2015*
Capital
Evaluations

Total RiskTier 1
Common
Based
Risk-Based Equity Tier 1
Capital Ratio Capital Ratio Capital Ratio

Leverage
Ratio

Well
Capitalized

≥10%

≥8%

≥6.5%

≥5%

Adequately
Capitalized**

≥8%

≥6%

≥4.5%

≥4%

Under­
capitalized

Does not qualify as either Well Capitalized or
Adequately Capitalized

* Effective January 1, 2018, the supplemental leverage ratio will be added to capital evaluations for deposit insurance assessment purposes.
**An institution is Adequately Capitalized if it is not Well Capitalized, but satisfies each of
the listed capital ratio standards for Adequately Capitalized.

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)
were 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 riskbased assessment capital groups, undercapitalized includes
institutions that are significantly or critically
undercapitalized.
Supervisory Group
Capital Category

1. Well Capitalized
2. Adequately Capitalized
3. Undercapitalized

A

I
5–9 bps
II
14 bps
III
23 bps

B

C

II
14 bps

III
23 bps
IV
35 bps

Effective April 1, 2011, the initial base assessment rates are 5
to 35 basis points. An institution’s total assessment rate may
be less than or greater than its initial base assessment rate as a
result of additional risk adjustments.
The base assessment rates for small institutions in Risk
Category I are based on a combination of financial ratios and
CAMELS component ratings (the financial ratios method).
As required by Dodd-Frank, the calculation of risk-based
assessment rates for large institutions no longer relies on longterm debt issuer ratings. Rates for large institutions are based
on CAMELS ratings and certain forward-looking financial
measures combined into two scorecards—one for most large
institutions and another for the remaining very large institutions that are structurally and operationally complex or that
pose unique challenges and risks in case of failure (highly

35

2015, Volume 9, No. 3

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:

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.
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

Total Base Assessment Rates*
Risk
Risk
Risk
Risk
Category Category Category Category
I
II
III
IV

Initial base
assessment rate
Unsecured debt
adjustment
Brokered deposit
adjustment
Total Base
Assessment rate

Large and
Highly
Complex
Institutions

5–9

14

23

35

5–35

-4.5–0

-5–0

-5–0

-5–0

-5–0

—

0–10

0–10

0–10

0–10

2.5–9

9–24

18–33

30–45

2.5–45

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

Beginning in 2007, each institution is assigned a risk-based
rate for a quarterly assessment period near the end of the
quarter following the assessment period. Payment is generally
due on the 30th day of the last month of the quarter following the assessment period. Supervisory rating changes are
effective for assessment purposes as of the examination transmittal date.
Special Assessment – On May 22, 2009, the FDIC board
approved a final rule that imposed a 5 basis point special
assessment as of June 30, 2009. The special assessment was
levied on each insured depository institution’s assets minus
its Tier 1 capital as reported in its report of condition as of
FDIC Quarterly

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Quarterly Banking Profile
reported as “Perpetual preferred stock and related surplus.” For
regulatory capital purposes, this noncumulative perpetual
preferred stock qualifies as a component of Tier 1 capital.
Qualifying Subchapter S corporations and mutual institutions
issue unsecured subordinated debentures to the Treasury
Department through the SBLF. Depository institutions that
issued these debentures report them as “Subordinated notes
and debentures.” For regulatory capital purposes, the
debentures are eligible for inclusion in an institution’s Tier 2
capital in accordance with their primary federal regulator’s
capital standards. To participate in the SBLF Program, an
institution with outstanding securities issued to the Treasury
Department under the Capital Purchase Program (CPP) was
required to refinance or repay in full the CPP securities at the
time of the SBLF funding. Any outstanding warrants that an
institution issued to the Treasury Department under the CPP
remain outstanding after the refinancing of the CPP stock
through the SBLF Program unless the institution chooses to
repurchase them.
Subchapter S corporation – a Subchapter S corporation is treated as a pass-through entity, similar to a partnership, for federal income tax purposes. It is generally not subject to any
federal income taxes at the corporate level. This can have the
effect of reducing institutions’ reported taxes and increasing
their after-tax earnings.

FDIC Quarterly

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.

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