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Quarterly Banking Profile

Third Quarter 2007

INSURED INSTITUTION PERFORMANCE
I
I
I
I

Credit Quality Problems Drag Down Earnings
Industry Net Income Falls to Four-Year Low
Asset Growth Sets New Quarterly Record
Net Interest Margins Register Slight Improvement

Almost Half of All Institutions Report Lower Profits

quarter of 2006 to a negative $2.3 billion in the current
quarter.

Rising levels of troubled loans in all major loan categories,
but most notably in residential mortgage portfolios, led to a
steep jump in expenses for bad loans in the third quarter.
These higher costs, combined with sharply lower trading
revenue, caused industry earnings to fall 24.7 percent from
a year ago to $28.7 billion — the lowest level for industry
earnings since the fourth quarter of 2002. This is the first
time since 2003 that quarterly earnings have been below
$30 billion. The industry’s return on assets (ROA) for the
quarter was 0.92 percent, the lowest ROA since the fourth
quarter of 1992. Slightly fewer than half of all insured
institutions (48.5 percent) had ROAs of 1 percent or higher. A year ago, 54.4 percent of institutions attained this
benchmark. The year-over-year decline in industry net
income was fairly widespread; almost half of all institutions
(49 percent) reported lower quarterly earnings compared to
the third quarter of 2006. However, most of the decline
was attributable to results at a relatively few large institutions. Ten institutions accounted for more than half of the
decline in industry earnings. Net income in foreign offices
fell by $4.3 billion, from a positive $2.0 billion in the third

Loss Provisions Surge to 20-Year High
Loan-loss provisions totaled $16.6 billion, more than double the $7.5 billion insured institutions set aside for credit
losses in the third quarter of 2006 and the largest quarterly
loss provision for the industry since the second quarter of
1987. Loss provisions absorbed 11 percent of net operating
revenue (net interest income plus total noninterest
income), the highest level since the fourth quarter of 2002.
Noninterest income was $3.2 billion (5.1 percent) lower
than in the third quarter of 2006; this is only the second
time in the last 12 quarters that noninterest income has
declined on a year-over-year basis. Revenue from trading
was $2.8 billion (60.3 percent) lower than a year earlier.
Sales of loans yielded a net loss of $139 million, compared
to $2.3 billion in gains a year ago. This is the first time the
industry has reported a net loss on loan sales since institutions first began reporting these data seven years ago.
Gains on sales of securities and other assets declined by
Chart 2

Chart 1

Net Interest Income Growth Was Among Few
Positives for Industry Earnings

Industry Earnings Fall Below $30 Billion for the
First Time Since 2003
$ Billions

3rd Quarter 2006 to 3rd Quarter 2007
($ Billions)
12.0

38.0 38.1
Securities and Other Gains/Losses, Net
36.9
36.7
35.4 36.0
Net Operating Income
34.0 33.2 34.7
34.0
32.7
32.5
31.8 31.2
31.1
30.2 30.4 31.1
28.7
30.0 29.5
38.0

8.0

26.0

Positive
Factor

9.2

Negative
Factors

5.6

22.0

5.3

4.0

18.0

0.0

14.0

-0.7

10.0

-3.2

-4.0

6.0
2.0
-2.0

-8.0
1

2

3

2003

FDIC QUARTERLY

4

1

2

3

2004

4

1

2

3

2005

4

1

2

3

2006

4

1

2

3

2007

1

Increase in
Net Interest
Income

Decrease in
Noninterest
Income

Increase in
Loan Loss
Provision

Decrease in Increase in
Securities & Noninterest
Other Gains/
Expense
Losses

2007, VOLUME 1, NO. 3

year earlier, rising year-over-year for the third quarter in a
row. Losses were up in most of the major loan categories.
The largest increase occurred in loans to commercial and
industrial (C&I) borrowers, where charge-offs were $796 million (91.4 percent) higher than a year earlier. Charge-offs of
consumer loans other than credit cards had the second-largest
increase, rising by $702 million (46.1 percent). Net chargeoffs of residential mortgage loans were up by $676 million
(164.8 percent). Loss rates were significantly higher at larger
institutions, where deterioration was most pronounced in residential mortgage loans. The quarterly loss rate on residential
mortgage loans increased to 0.21 percent in the third quarter,
from 0.08 percent a year earlier, at institutions with assets
greater than $1 billion. The net charge-off rate on residential
mortgages at smaller institutions increased from 0.05 percent
to 0.09 percent. The net charge-off rate on all loans and
leases rose from 0.44 percent to 0.62 percent at larger institutions, while at smaller institutions, the quarterly charge-off
rate rose from 0.15 percent to 0.24 percent.

$698 million (80.8 percent) from a year earlier, to $166 million, the lowest level in seven years. Extraordinary items,
which added $101 million to earnings a year ago, produced a
net loss of $1.1 billion in the quarter. Noninterest expenses
were $5.3 billion (6.5 percent) higher than in the third quarter of 2006. The magnitude of these downward pressures
dwarfed improvements in net interest income, trust income
and service charges on deposit accounts (up $5.6 billion, $1.3
billion, and $721 million, respectively).

Net Interest Income Registers Strong Growth
The 6.5-percent increase in net interest income was the best
year-over-year growth rate in five years. Interest-earning
assets were up 7.5 percent from a year ago, and net interest
margins (NIMs) were modestly higher than in the second
quarter, thanks in part to a slightly steeper yield curve. The
average NIM in the third quarter was 3.36 percent, up from
3.34 percent in the second quarter, but lower than the 3.38
percent average of a year ago. More than half of all institutions reported consecutive-quarter improvements in NIMs,
but only 35 percent had year-over-year margin improvement.
Overall, margins remain near 17-year lows.

Residential Real Estate Accounts for More than Half
of the Increase in Noncurrent Loans

Net charge-offs totaled $10.7 billion, the largest quarterly
amount since the fourth quarter of 2002. Loan losses in the
third quarter were $3.6 billion (49.9 percent) higher than a

Noncurrent loans and leases registered their largest quarterly
increase in 20 years during the third quarter, rising by $16.0
billion (23.8 percent). More than half of the increase consisted of residential real estate loans. Noncurrent residential
mortgage loans increased by $7.5 billion (27.2 percent),
while noncurrent home equity lines of credit rose by $783
million (27.4 percent). Large increases in noncurrent loans

Chart 3

Chart 4

Loan Losses Are Higher in Most Loan Categories

Quarterly Net Interest Margins Improve
Slightly

Loss Provisions Rose to a 20-Year High
$ Billions

Net Interest Margin (%)
5.0

17

Loss Provisions

Assets < $100 Million

Net Charge-offs

4.5

4.13

11
4.0

10
9

9

8
3.35

3.5

7

9

8

8

9

9

8

7 7

8

7 7 7

7

6

11

10

6 6

8

9
8

7
6

Assets > $100 Million

3.0

2.5
1

2

3

2003

FDIC QUARTERLY

4

1

2

3

2004

4

1

2

3

2005

4

1

2

3

2006

4

1

2

00

3

3/04

2007

2

9/04

3/05

9/05

3/06

9/06

3/07

9/07

2007, VOLUME 1, NO. 3

Quarterly Banking Profile

Regulatory Capital Ratios Decline

also occurred in real estate construction and development
loans (up $3.6 billion, or 45.5 percent), real estate loans
secured by nonfarm nonresidential properties (up $918 million, or 15.4 percent), and C&I loans (up $833 milllion, or
10.4 percent). At the end of September, the total amount of
loans and leases that were noncurrent stood at $83.0 billion,
the highest level since the third quarter of 1992. The percentage of loans and leases that were noncurrent, which
reached a 22-year low of 0.70 percent at midyear 2006, has
risen in each of the five succeeding quarters. The noncurrent
rate was 1.08 percent at the end of September, the highest
level since the fourth quarter of 2003.

Equity capital grew by $48.1 billion (3.8 percent), the largest
quarterly increase since the third quarter of 2004, as the
industry’s equity-to-assets ratio rose from 10.43 percent to
10.45 percent. A sizable share of the increase in equity capital came from merger-related goodwill, which grew by $22.2
billion (6.8 percent). Unrealized losses on securities held for
sale, which are deducted from equity capital, declined by $8.1
billion (39.2 percent) during the quarter, providing an additional boost to capital. The industry’s tier 1 regulatory capital, which excludes goodwill and unrealized gains or losses on
securities, increased by only $17.6 billion (1.8 percent), and
the average core capital (leverage) ratio declined from 8.18
percent to 8.14 percent during the quarter. The industry’s
ratio of tier 1 capital to risk-weighted assets fell from 10.41
percent to 10.24 percent, and the total risk-weighted capital
ratio declined from 12.86 percent to 12.75 percent, both sixyear lows. At the end of the quarter, more than 99 percent of
insured institutions met or exceeded the highest regulatory
capital requirements.

Strong Reserve Growth Falls Short of the Increase in
Noncurrent Loans
The industry’s reserves for loan and lease losses increased by
$5.7 billion (7.0 percent) during the quarter, as insured institutions added $5.9 billion more to reserves in loss provisions
than was removed by charge-offs. The growth in reserves was
the largest quarterly increase in 18 years and caused the
industry’s ratio of reserves to total loans and leases to increase
for the third quarter in a row. However, the increase in
reserves failed to keep pace with the sharp rise in noncurrent
loans. As a result, the industry’s “coverage ratio” declined
from $1.21 in reserves for every $1.00 of noncurrent loans to
$1.05 during the quarter — the lowest level for the coverage
ratio since the third quarter of 1993.

C&I Loan Growth Sets Another New Record
Total assets increased by a record $446.3 billion (3.6 percent), eclipsing the previous quarterly high of $331.6 billion
set in the first quarter of 2006. Loans and leases accounted
for more than half of the increase, rising by $231.8 billion
(3.1 percent). After increasing by a record $51.2 billion in

Chart 5

Chart 6

Growth in Noncurrent Loans Outpaces
Reserve Growth

Troubled Mortgage Loans Surged in the
Third Quarter

Coverage Ratio* (%)
200

$ Billions
100

Coverage Ratio (%)

$ Billions
9.00

Quarterly Net Charge-Offs
Quarterly Change in Noncurrent Loans

180

85
160

6.00
70

140

Loan-Loss Reserves ($)

120
55

3.00
100

40

80

Noncurrent Loans ($)

0.00

60
25
40
10

-3.00

20
3/04

9/04

3/05

9/05

3/06

9/06

3/07

3/04 6/04 9/04 12/04 3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07

9/07

Note: Noncurrent loans = loans 90 days or more past due or in nonaccrual status.

*Loan-loss reserves to noncurrent loans.

FDIC QUARTERLY

3

2007, VOLUME 1, NO. 3

the second quarter, C&I loan growth set a new record of
$89.5 billion (6.9 percent) in the third quarter. Three large
institutions accounted for more than half of the increase in
C&I loans. Residential mortgage loans increased by $50.2
billion (2.3 percent), the largest quarterly increase since the
second quarter of 2006. Real estate construction and development loans increased by $16.0 billion (2.7 percent), the
smallest quarterly increase since the second quarter of 2004.
Despite the slowdown in construction loan growth, the number of insured institutions with concentrations of construction loans continued to increase. At the end of September,
more than one in four institutions (27.4 percent) reported
construction loan portfolios that exceeded their total capital.
In addition to the growth in loans, assets in trading accounts
increased by $78.6 billion (10.7 percent), and intangible
assets rose by $25.2 billion (5.8 percent) during the quarter.
Goodwill accounted for most of the growth in intangible
assets.

deposits came from time deposits, which rose by $82.2 billion
(3.3 percent), and from other interest-bearing deposits, which
increased by $20.1 billion (0.7 percent). Noninterest-bearing
deposits in domestic offices fell by $53.1 billion (4.5 percent).
Federal Home Loan Bank (FHLB) advances filled a substantial share of the funding gap, rising by $161.8 billion (26.6
percent) during the quarter. More than half of all insured
institutions (59.2 percent) had FHLB advances at the end of
September. Liabilities in trading accounts increased by $45.0
billion (15.3 percent).

“Problem List” Assets Decline
The number of insured commercial banks and savings institutions reporting quarterly financial results declined from 8,615
to 8,560 during the quarter. Forty-two new charters were
added, while mergers absorbed 93 charters. One insured savings institution failed during the quarter. Two mutuallyowned savings institutions, with combined assets of $304
million, converted to stock ownership. The number of institutions on the FDIC’s “Problem List” increased for the fourth
quarter in a row, from 61 to 65, but the assets of “problem”
institutions declined during the quarter, from $23.8 billion to
$18.5 billion.

Nondeposit Borrowings Fund Bulk of Asset Growth
Insured institutions increased their reliance on wholesale
funding sources during the quarter, as domestic deposit
growth did not keep pace with growth in assets. Deposits
increased by $146.0 billion (1.8 percent), as domestic office
deposits grew by $49.2 billion (0.7 percent), and deposits in
foreign offices rose by $96.8 billion (7.2 percent). This
growth in deposits represented less than a third of the growth
in total assets during the quarter. The increase in domestic

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

Chart 7

Chart 8

The Noncurrent Rate on Construction Loans Has Been
Rising from Historic Lows

FHLB Borrowings Rose Sharply

Percent Noncurrent
16.0

$ Billions
900

14.0

800

12.0

700

770

598

600

10.0

500

436 453 451

8.0

281

300

4.0

100

200

200

2.0
0.0
1991

480

386

400
6.0

621

542

78

78

101

128 133

159

0
1993

FDIC QUARTERLY

1995

1997

1999

2001

2003

2005

12/91

2007

4

12/93

12/95

12/97

12/99

12/01

12/03

12/05

9/07

2007, VOLUME 1, NO. 3

Quarterly Banking Profile
TABLE I-A. Selected Indicators, All FDIC-Insured Institutions*
2007**
2006**
2006
2005
Return on assets (%) ................................................................
1.11
1.33
1.28
1.28
Return on equity (%) .................................................................
10.52
12.87
12.31
12.43
8.14
8.29
8.23
8.25
Core capital (leverage) ratio (%) ...............................................
Noncurrent assets plus
other real estate owned to assets (%) ...................................
0.73
0.50
0.53
0.50
Net charge-offs to loans (%) .....................................................
0.50
0.36
0.39
0.49
Asset growth rate (%) ...............................................................
8.11
9.84
9.03
7.64
3.32
3.43
3.31
3.47
Net interest margin (%) .............................................................
Net operating income growth (%) .............................................
-9.08
12.20
8.54
11.43
8,560
8,743
8,680
8,833
Number of institutions reporting ................................................
Commercial banks .................................................................
7,303
7,449
7,401
7,526
Savings institutions ................................................................
1,257
1,294
1,279
1,307
Percentage of unprofitable institutions (%) ...............................
10.23
6.99
7.91
6.22
Number of problem institutions .................................................
65
47
50
52
Assets of problem institutions (in billions) .................................
$19
$4
$8
$7
Number of failed/assisted institutions .......................................
2
0
0
0
* Excludes insured branches of foreign banks (IBAs).
** Through September 30, ratios annualized where appropriate. Asset growth rates are for 12 months ending September 30.

2004
1.28
13.20
8.11

2003
1.38
15.05
7.88

2002
1.30
14.08
7.86

0.53
0.56
11.36
3.52
4.02
8,976
7,631
1,345
5.97
80
$28
4

0.75
0.78
7.58
3.73
16.39
9,181
7,770
1,411
5.99
116
$30
3

0.90
0.97
7.20
3.96
17.58
9,354
7,888
1,466
6.67
136
$39
11

TABLE II-A. Aggregate Condition and Income Data, All FDIC-Insured Institutions
(dollar figures in millions)

3rd Quarter
2007
8,560
2,220,446

Number of institutions reporting ........................................................................................
Total employees (full-time equivalent) ..............................................................................
CONDITION DATA
Total assets ...................................................................................................................... $12,707,112
.
Loans secured by real estate ........................................................................................
.
4,700,419
1-4 Family residential mortgages ...............................................................................
.
2,238,284
Nonfarm nonresidential ..............................................................................................
.
939,559
Construction and development ...................................................................................
616,403
Home equity lines .......................................................................................................
591,360
Commercial & industrial loans .......................................................................................
1,389,545
Loans to individuals .......................................................................................................
1,013,337
Credit cards ................................................................................................................
384,540
Farm loans .....................................................................................................................
56,172
Other loans & leases .....................................................................................................
546,324
Less: Unearned income .................................................................................................
.
2,237
Total loans & leases ......................................................................................................
7,703,559
Less: Reserve for losses ...............................................................................................
86,935
Net loans and leases .....................................................................................................
7,616,624
Securities .......................................................................................................................
1,989,044
Other real estate owned ................................................................................................
9,805
Goodwill and other intangibles ......................................................................................
.
461,051
All other assets ..............................................................................................................
2,630,588
Total liabilities and capital ................................................................................................. 12,707,112
Deposits .........................................................................................................................
8,181,570
Domestic office deposits .............................................................................................
.
6,741,161
Foreign office deposits ...............................................................................................
.
1,440,409
Other borrowed funds ....................................................................................................
2,454,135
Subordinated debt .........................................................................................................
177,482
All other liabilities ...........................................................................................................
566,607
Equity capital .................................................................................................................
1,327,318
Loans and leases 30-89 days past due ............................................................................
92,223
Noncurrent loans and leases ............................................................................................
82,960
Restructured loans and leases .........................................................................................
4,244
Direct and indirect investments in real estate ...................................................................
1,101
Mortgage-backed securities .............................................................................................
.
1,199,186
Earning assets .................................................................................................................. 11,031,953
FHLB Advances ................................................................................................................
770,203
Unused loan commitments ...............................................................................................
8,301,186
Trust assets ...................................................................................................................... 21,501,189
Assets securitized and sold*** ..........................................................................................
1,735,779
Notional amount of derivatives*** ..................................................................................... 173,374,162
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 ..............................................................................
Net income ..............................................................................................
.
Net charge-offs ...........................................................................................
Cash dividends ...........................................................................................
Retained earnings ......................................................................................
.
.
Net operating income .............................................................................

First Three
Qtrs 2007
$542,980
278,779
264,201
37,085
187,279
265,996
2,439
48,187
-1,918
100,732
27,922
94,393
6,339
101,015

*** Call Report filers only.

FDIC QUARTERLY

First Three
Qtrs 2006
$485,113
231,185
253,928
19,858
185,971
254,815
1,815
54,788
569
112,823
18,649
60,396
52,427
111,101

2nd Quarter
2007
8,615
2,220,950

3rd Quarter
2006
8,743
2,196,445

%Change
06:3-07:3
-2.1
1.1

$12,260,815
4,619,133
2,188,078
943,286
600,374
576,684
1,300,007
980,884
373,951
55,608
513,507
3,068
7,466,070
81,222
7,384,848
1,976,945
7,995
435,890
2,455,138
12,260,815
8,035,535
6,691,951
1,343,583
2,248,609
172,377
525,086
1,279,208
74,090
66,995
3,231
1,080
1,217,987
10,721,804
608,438
8,082,795
20,748,637
1,714,556
153,825,754

$11,753,570
4,464,287
2,175,303
885,953
545,000
554,890
1,180,769
954,854
383,143
54,010
515,704
2,235
7,167,388
77,841
7,089,548
1,991,930
5,567
387,895
2,278,631
11,753,570
7,577,977
6,474,123
1,103,854
2,298,791
146,675
506,258
1,223,868
62,752
52,538
3,635
1,119
1,208,741
10,258,099
632,586
7,703,202
18,064,588
1,073,059
127,107,293

8.1
5.3
2.9
6.1
13.1
6.6
17.7
6.1
0.4
4.0
5.9
0.1
7.5
11.7
7.4
-0.1
76.1
18.9
15.4
8.1
8.0
4.1
30.5
6.8
21.0
11.9
8.5
47.0
57.9
16.8
-1.6
-0.8
7.5
21.8
7.8
19.0
61.8
36.4

3rd Quarter
2006
$171,599
85,956
85,643
7,481
62,618
85,692
864
17,986
101
38,067
7,138
19,910
18,156
37,428

%Change
06:3-07:3
9.8
13.1
6.5
122.4
-5.1
6.2
-80.8
-25.6
N/M
-24.7
49.9
40.0
-95.6
-20.8

%Change
11.9
20.6
4.1
86.8
0.7
4.4
34.4
-12.1
N/M
-10.7
49.7
56.3
-87.9
-9.1

3rd Quarter
2007
$188,431
97,193
91,238
16,637
59,400
91,029
166
13,391
-1,079
28,669
10,702
27,868
800
29,661

N/M - Not Meaningful

5

2007, VOLUME 1, NO. 3

TABLE III-A. Third Quarter 2007, All FDIC-Insured Institutions
Asset Concentration Groups*
THIRD QUARTER
All Insured Credit Card International Agricultural Commercial
(The way it is...)
Institutions
Banks
Banks
Banks
Lenders
Number of institutions reporting .............................
8,560
28
4
1,634
4,739
Commercial banks ..............................................
7,303
25
4
1,630
4,259
Savings institutions .............................................
1,257
3
0
4
480
Total assets (in billions) ......................................... $12,707.1
$423.6
$2,644.0
$157.3
$5,055.9
Commercial banks ..............................................
10,792.7
411.7
2,644.0
156.9
4,584.1
Savings institutions .............................................
1,914.4
11.8
0.0
0.4
471.8
Total deposits (in billions) ......................................
8,181.6
122.4
1,597.8
127.4
3,567.7
Commercial banks ..............................................
7,011.5
120.6
1,597.8
127.1
3,265.5
Savings institutions .............................................
1,170.0
1.8
0.0
0.3
302.2
Net income (in millions) ..........................................
28,669
4,137
4,454
510
12,160
Commercial banks ..............................................
27,270
4,055
4,454
509
11,230
Savings institutions .............................................
1,399
82
0
1
929

Mortgage
Lenders
781
169
612
$1,454.2
254.2
1,199.9
848.0
113.4
734.6
1,133
518
614

Other
Consumer Specialized
Lenders
<$1 Billion
120
377
95
332
25
45
$95.8
$40.1
46.0
32.1
49.8
8.1
73.2
28.5
32.9
23.0
40.3
5.5
275
223
198
151
77
72

All Other
<$1 Billion
820
747
73
$111.4
94.8
16.5
91.0
78.0
13.0
295
267
28

All Other
>$1 Billion
57
42
15
$2,724.9
2,568.8
156.1
1,725.6
1,653.2
72.4
5,483
5,887
-404

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 ......................

6.95
3.58
3.36
1.91
2.92
0.53
0.95
1.35
0.92
8.81
0.57
155.45
58.37
10.90
49.47

13.37
4.62
8.75
11.24
9.04
3.42
3.67
6.09
3.98
16.76
3.98
116.99
46.61
7.14
64.29

6.53
3.76
2.77
1.93
2.71
0.63
0.65
0.99
0.69
8.91
0.77
181.85
62.25
0.00
75.00

7.27
3.27
4.00
0.71
2.65
0.16
1.31
1.56
1.31
11.64
0.26
90.34
60.12
3.67
61.08

7.10
3.41
3.68
1.42
2.82
0.33
1.07
1.42
0.98
9.06
0.30
158.22
59.01
12.77
46.78

6.64
4.02
2.61
0.91
2.08
0.75
0.32
0.47
0.32
3.30
0.42
252.07
62.00
13.96
38.16

7.77
3.27
4.50
2.31
3.45
1.38
1.11
1.76
1.17
10.86
1.05
164.92
49.98
9.17
43.33

5.69
2.55
3.14
9.43
8.73
0.11
2.21
3.40
2.23
11.48
0.32
136.68
70.30
24.40
46.42

6.62
2.90
3.72
1.05
3.04
0.15
1.03
1.31
1.07
9.31
0.22
125.56
67.70
5.98
54.39

6.30
3.42
2.88
1.84
2.72
0.27
0.88
1.24
0.83
7.82
0.42
122.56
58.96
8.77
49.12

Structural Changes
New Charters ......................................................
Institutions absorbed by mergers ........................
Failed Institutions ................................................

42
93
1

0
0
0

0
0
0

1
8
0

7
70
0

2
2
0

0
1
0

31
0
0

1
1
0

0
11
1

Return on assets (%) ................................... 2006
............................. 2004
............................. 2002

1.31
1.33
1.34

4.09
4.10
3.76

0.92
0.86
0.65

1.30
1.33
1.38

1.32
1.34
1.31

1.06
1.15
1.36

1.60
1.16
1.18

2.12
1.53
1.60

1.07
1.18
1.20

1.35
1.34
1.51

Net charge-offs to loans and leases (%) ..... 2006
............................. 2004
............................. 2002

0.40
0.51
0.98

3.86
4.24
5.35

0.64
0.89
2.17

0.15
0.20
0.30

0.19
0.28
0.68

0.18
0.10
0.15

1.21
1.10
1.29

0.12
0.27
0.42

0.17
0.26
0.34

0.23
0.26
0.86

PRIOR THIRD QUARTERS
(The way it was...)

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

FDIC QUARTERLY

6

2007, VOLUME 1, NO. 3

Quarterly Banking Profile
TABLE III-A. Third Quarter 2007, All FDIC-Insured Institutions
Asset Size Distribution
THIRD QUARTER
(The way it is...)
Number of institutions reporting .............................
Commercial banks ...............................................
Savings institutions ..............................................
Total assets (in billions) ..........................................
Commercial banks ...............................................
Savings institutions ..............................................
Total deposits (in billions) .......................................
Commercial banks ...............................................
Savings institutions ..............................................
Net income (in millions) ..........................................
Commercial banks ...............................................
Savings institutions ..............................................

$100 Million $1 Billion
Less
All
to
to
than
Insured
$10 Billion
Institutions $100 Million $1 Billion
8,560
3,513
4,392
539
7,303
3,131
3,673
415
1,257
382
719
124
$12,707.1
$186.0
$1,296.8
$1,408.3
10,792.7
166.5
1,050.3
1,100.1
1,914.4
19.5
246.5
308.2
8,181.6
151.2
1,036.0
1,009.6
7,011.5
136.5
850.4
793.0
1,170.0
14.7
185.5
216.7
28,669
369
3,328
3,904
27,270
357
2,932
3,433
1,399
12
396
470

Geographic Regions*
Greater
than $10
Billion
116
84
32
$9,816.0
8,475.8
1,340.2
5,984.8
5,231.7
753.1
21,068
20,547
521

New York
1,047
547
500
$2,381.6
1,710.3
671.2
1,470.4
1,024.5
445.9
4,828
4,686
142

Atlanta
1,214
1,069
145
$3,197.1
2,920.1
277.0
2,064.2
1,901.2
163.0
6,083
6,424
-341

Chicago
1,794
1,479
315
$2,796.5
2,641.0
155.4
1,786.9
1,675.8
111.2
6,348
6,228
120

Kansas
City
1,990
1,885
105
$931.6
891.8
39.8
661.4
633.3
28.1
3,758
3,709
49

Dallas
1,740
1,618
122
$659.5
542.4
117.1
492.6
422.2
70.4
1,866
1,606
260

San
Francisco
775
705
70
$2,740.9
2,087.0
653.9
1,706.0
1,354.6
351.4
5,784
4,616
1,168

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 ......................

6.95
3.58
3.36
1.91
2.92
0.53
0.95
1.35
0.92
8.81
0.57
155.45
58.37
10.90
49.47

7.18
3.05
4.13
1.45
4.00
0.23
0.79
1.04
0.80
5.87
0.24
147.01
75.52
17.31
49.33

7.28
3.38
3.90
1.11
3.09
0.25
1.02
1.37
1.04
9.86
0.24
150.43
65.38
6.31
49.93

7.21
3.48
3.73
1.61
2.92
0.35
1.18
1.68
1.12
9.92
0.35
144.22
57.19
5.94
48.42

6.86
3.64
3.22
2.07
2.88
0.60
0.91
1.31
0.88
8.57
0.66
156.84
57.27
13.79
41.38

6.96
3.55
3.41
2.18
3.23
0.63
0.90
1.21
0.84
6.77
0.93
117.69
57.11
15.19
42.60

6.62
3.52
3.10
1.47
2.49
0.39
0.87
1.18
0.77
7.61
0.28
224.79
59.01
16.06
39.21

6.54
3.54
3.00
1.78
2.72
0.38
0.90
1.32
0.91
10.17
0.43
156.68
60.68
10.76
47.71

7.71
3.45
4.26
3.35
4.09
0.58
1.58
2.45
1.63
16.16
0.74
111.67
56.58
6.63
53.62

7.35
3.41
3.94
1.40
3.17
0.28
1.13
1.52
1.15
11.13
0.29
146.13
63.19
7.01
58.33

7.39
3.82
3.56
1.95
2.91
0.83
0.90
1.29
0.87
8.08
0.72
179.52
56.47
17.03
48.39

Structural Changes
New Charters ......................................................
Institutions absorbed by mergers ........................
Failed Institutions ................................................

42
93
1

40
27
0

1
45
0

1
12
1

0
9
0

2
29
0

18
20
1

5
15
0

3
13
0

3
11
0

11
5
0

PRIOR THIRD QUARTERS
(The way it was...)
Return on assets (%) .................................... 2006
............................. 2004
............................. 2002

1.31
1.33
1.34

1.02
1.08
1.11

1.23
1.22
1.23

1.27
1.47
1.54

1.33
1.33
1.33

1.13
1.13
1.10

1.37
1.46
1.38

1.01
1.21
1.29

1.79
1.49
1.64

1.22
1.46
1.44

1.82
1.67
1.75

Net charge-offs to loans and leases (%) ...... 2006
............................. 2004
............................. 2002

0.40
0.51
0.98

0.16
0.25
0.31

0.14
0.22
0.36

0.20
0.34
0.76

0.49
0.60
1.21

0.63
0.73
1.51

0.18
0.26
0.73

0.27
0.43
0.80

0.46
0.61
1.15

0.23
0.30
0.42

0.62
0.54
0.77

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

FDIC QUARTERLY

7

2007, VOLUME 1, NO. 3

TABLE IV-A. First Three Quarters 2007, All FDIC-Insured Institutions
Asset Concentration Groups*
FIRST THREE QUARTERS
All Insured Credit Card International Agricultural Commercial
(The way it is...)
Institutions
Banks
Banks
Banks
Lenders
Number of institutions reporting ..............................
8,560
28
4
1,634
4,739
Commercial banks ...............................................
7,303
25
4
1,630
4,259
Savings institutions ..............................................
1,257
3
0
4
480
Total assets (in billions) .......................................... $12,707.1
$423.6
$2,644.0
$157.3
$5,055.9
Commercial banks ...............................................
10,792.7
411.7
2,644.0
156.9
4,584.1
Savings institutions ..............................................
1,914.4
11.8
0.0
0.4
471.8
Total deposits (in billions) .......................................
8,181.6
122.4
1,597.8
127.4
3,567.7
7,011.5
120.6
1,597.8
127.1
3,265.5
Commercial banks ...............................................
Savings institutions ..............................................
1,170.0
1.8
0.0
0.3
302.2
Net income (in millions) ..........................................
100,732
11,649
16,190
1,432
39,953
Commercial banks ...............................................
90,184
11,030
16,190
1,429
36,870
Savings institutions ..............................................
10,549
618
0
3
3,083
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 .......................

Mortgage
Lenders
781
169
612
$1,454.2
254.2
1,199.9
848.0
113.4
734.6
7,557
1,700
5,856

Other
Consumer Specialized
Lenders
<$1 Billion
120
377
95
332
25
45
$95.8
$40.1
46.0
32.1
49.8
8.1
73.2
28.5
32.9
23.0
40.3
5.5
962
715
699
481
263
234

All Other
<$1 Billion
820
747
73
$111.4
94.8
16.5
91.0
78.0
13.0
860
788
73

All Other
>$1 Billion
57
42
15
$2,724.9
2,568.8
156.1
1,725.6
1,653.2
72.4
21,416
20,996
419

6.83
3.50
3.32
2.05
2.92
0.41
1.11
1.63
1.11
10.52
0.50
132.82
57.33
10.23
49.50

13.23
4.80
8.43
10.31
8.36
3.10
3.47
5.81
3.74
15.63
3.90
108.79
46.06
10.71
57.14

6.28
3.68
2.60
2.31
2.84
0.45
0.85
1.26
0.87
11.25
0.65
155.91
61.90
0.00
75.00

7.15
3.19
3.96
0.68
2.66
0.15
1.26
1.50
1.25
11.32
0.19
123.18
61.10
2.63
57.34

7.02
3.35
3.67
1.51
2.84
0.27
1.14
1.59
1.08
10.11
0.28
137.62
58.41
12.20
50.12

6.59
3.93
2.66
0.99
2.05
0.38
0.65
1.11
0.73
7.44
0.29
188.45
58.87
13.06
30.99

7.23
2.99
4.24
1.93
2.92
0.91
1.38
2.14
1.40
13.75
0.98
118.75
47.98
8.33
44.17

5.53
2.47
3.06
9.44
8.59
0.08
2.35
3.55
2.39
12.34
0.29
119.97
69.94
24.67
43.50

6.51
2.84
3.67
1.01
3.01
0.11
1.01
1.29
1.04
9.16
0.17
117.12
68.34
5.37
51.10

6.16
3.29
2.88
2.10
2.66
0.22
1.12
1.67
1.11
10.30
0.35
118.18
56.16
5.26
49.12

86.82

77.67

84.04

91.57

88.28

91.46

91.71

88.48

91.79

85.07

1.13
104.79

3.99
216.17

1.23
117.12

1.31
127.52

1.14
113.24

0.61
45.93

1.12
179.85

1.35
142.44

1.18
126.60

0.74
77.38

0.73
10.45
8.14
10.22
12.75
93.09
59.94
53.05

1.34
23.07
15.18
13.53
16.33
242.65
70.12
26.31

0.51
7.78
6.23
8.19
11.93
74.20
44.84
26.39

0.81
11.32
10.46
13.85
14.92
82.47
66.80
81.01

0.81
10.85
8.45
9.64
11.84
97.76
68.99
67.29

1.09
9.44
7.87
12.82
14.48
120.12
70.05
58.23

0.53
11.89
9.53
11.46
13.04
104.10
79.47
75.24

0.27
19.58
18.01
40.05
41.13
33.82
24.02
68.84

0.64
11.58
11.21
18.41
19.55
68.72
56.13
81.69

0.53
10.56
8.10
10.83
13.37
79.64
50.43
50.08

131
247
2

1
1
0

0
0
0

4
22
0

32
191
0

4
8
1

0
2
0

89
2
0

1
3
0

0
18
1

Number of institutions ................................... 2006
................................. 2004
................................ 2002

8,743
9,024
9,415

29
35
41

4
6
5

1,691
1,783
1,877

4,710
4,385
4,081

845
1,000
1,159

125
136
206

398
458
453

886
1,138
1,495

55
83
98

Total assets (in billions) ................................ 2006
................................. 2004
................................ 2002

$11,753.6
9,877.2
8,272.8

$382.0
367.9
291.0

$2,128.5
1,565.9
1,232.2

$151.5
137.7
124.7

$4,673.2
3,195.3
3,394.2

$1,790.4
1,405.2
1,279.5

$107.1
211.7
168.3

$42.3
54.0
49.0

$117.4
147.6
192.5

$2,361.2
2,791.9
1,541.3

Return on assets (%) .................................... 2006
................................. 2004
................................ 2002

1.33
1.29
1.34

4.42
3.90
3.55

1.03
0.89
0.85

1.29
1.28
1.31

1.32
1.33
1.30

1.07
1.20
1.34

1.69
0.82
1.40

1.33
1.47
1.39

1.07
1.14
1.19

1.31
1.23
1.40

Net charge-offs to loans & leases (%) ......... 2006
................................ 2004
................................ 2002

0.36
0.55
0.97

3.38
4.69
6.07

0.59
1.05
1.78

0.14
0.17
0.26

0.18
0.29
0.67

0.14
0.11
0.16

1.00
0.94
1.12

0.53
0.46
0.47

0.17
0.26
0.30

0.20
0.25
0.86

Noncurrent assets plus
OREO to assets (%) ................................. 2006
................................. 2004
................................ 2002

0.50
0.57
0.92

1.35
1.30
1.61

0.40
0.69
1.28

0.67
0.77
0.93

0.51
0.55
0.88

0.52
0.59
0.68

0.65
0.63
1.34

0.20
0.30
0.36

0.52
0.63
0.70

0.37
0.40
0.80

Equity capital ratio (%) ................................. 2006
................................. 2004
................................ 2002

10.41
10.13
9.22

27.18
20.78
15.39

7.82
7.27
7.26

10.94
10.87
11.04

10.39
10.40
9.53

10.54
8.74
8.81

9.76
13.62
7.78

22.46
16.95
16.73

11.11
10.93
10.89

9.73
10.25
8.87

Condition Ratios (%)
Earning assets to total assets .................................
Loss Allowance to:
Loans and leases ................................................
Noncurrent loans and leases ...............................
Noncurrent assets plus
other real estate owned to assets ...........................
Equity capital ratio ..................................................
Core capital (leverage) ratio ...................................
Tier 1 risk-based capital ratio ..................................
Total risk-based capital ratio ...................................
Net loans and leases to deposits ............................
Net loans to total assets .........................................
Domestic deposits to total assets ...........................
Structural Changes
New Charters .......................................................
Institutions absorbed by mergers ........................
Failed Institutions .................................................
PRIOR FIRST THREE QUARTERS
(The way it was...)

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

FDIC QUARTERLY

8

2007, VOLUME 1, NO. 3

Quarterly Banking Profile
TABLE IV-A. First Three Quarters 2007, All FDIC-Insured Institutions
Asset Size Distribution
$100 Million
Less
to
than $100
$1 Billion
Million
3,513
4,392
3,131
3,673
382
719
$186.0
$1,296.8
166.5
1,050.3
19.5
246.5
151.2
1,036.0
136.5
850.4
14.7
185.5
1,159
10,078
1,118
8,777
42
1,300

Geographic Regions*

$1 Billion
to
$10 Billion
539
415
124
$1,408.3
1,100.1
308.2
1,009.6
793.0
216.7
11,051
9,429
1,621

Greater
than $10
Billion
116
84
32
$9,816.0
8,475.8
1,340.2
5,984.8
5,231.7
753.1
78,444
70,859
7,585

New York
1,047
547
500
$2,381.6
1,710.3
671.2
1,470.4
1,024.5
445.9
16,257
14,017
2,240

Atlanta
1,214
1,069
145
$3,197.1
2,920.1
277.0
2,064.2
1,901.2
163.0
24,756
24,150
606

Chicago
1,794
1,479
315
$2,796.5
2,641.0
155.4
1,786.9
1,675.8
111.2
20,963
20,346
617

Kansas
City
1,990
1,885
105
$931.6
891.8
39.8
661.4
633.3
28.1
10,937
10,760
178

Dallas
1,740
1,618
122
$659.5
542.4
117.1
492.6
422.2
70.4
5,538
4,729
810

San
Francisco
775
705
70
$2,740.9
2,087.0
653.9
1,706.0
1,354.6
351.4
22,280
16,182
6,098

FIRST THREE QUARTERS
(The way it is...)
Number of institutions reporting .............................
Commercial banks ...............................................
Savings institutions ..............................................
Total assets (in billions) ..........................................
Commercial banks ...............................................
Savings institutions ..............................................
Total deposits (in billions) .......................................
Commercial banks ...............................................
Savings institutions ..............................................
Net income (in millions) ..........................................
Commercial banks ...............................................
Savings institutions ..............................................

All
Insured
Institutions
8,560
7,303
1,257
$12,707.1
10,792.7
1,914.4
8,181.6
7,011.5
1,170.0
100,732
90,184
10,549

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 ......................

6.83
3.50
3.32
2.05
2.92
0.41
1.11
1.63
1.11
10.52
0.50
132.82
57.33
10.23
49.50

7.00
2.93
4.07
1.35
3.82
0.18
0.84
1.10
0.85
6.19
0.18
164.51
74.75
16.99
49.25

7.17
3.29
3.87
1.12
3.09
0.20
1.05
1.42
1.06
10.16
0.18
155.94
65.42
5.71
50.27

7.10
3.39
3.71
1.58
2.93
0.31
1.16
1.63
1.08
9.58
0.35
130.27
57.90
3.90
46.75

6.73
3.57
3.17
2.26
2.88
0.45
1.11
1.67
1.12
10.82
0.59
131.72
55.88
6.03
40.52

6.80
3.46
3.34
2.17
3.05
0.56
0.98
1.44
0.97
7.80
0.87
112.92
56.60
15.00
38.11

6.54
3.45
3.09
1.72
2.55
0.24
1.09
1.61
1.07
10.43
0.25
154.07
56.86
15.32
43.33

6.36
3.48
2.88
2.08
2.81
0.28
1.01
1.49
1.02
11.36
0.37
139.58
60.13
9.36
45.48

7.62
3.29
4.33
3.42
4.19
0.61
1.62
2.40
1.63
15.79
0.66
129.22
56.99
5.53
53.12

7.23
3.33
3.90
1.40
3.16
0.22
1.15
1.53
1.16
11.32
0.23
150.80
63.53
7.18
58.79

7.31
3.76
3.55
2.03
2.86
0.58
1.16
1.74
1.16
10.65
0.64
140.47
54.50
16.77
53.68

86.82

91.95

92.02

90.80

85.46

86.35

86.23

86.88

86.03

89.99

87.34

1.13
104.79

1.29
115.62

1.16
111.81

1.20
113.31

1.11
102.07

1.41
128.01

0.93
119.76

1.20
97.79

1.19
81.87

1.10
112.11

1.06
92.39

0.73
10.45
8.14
10.22
12.75
93.09
59.94
53.05

0.87
13.69
13.53
19.65
20.70
77.06
62.64
81.28

0.89
10.57
10.07
13.36
14.47
87.23
69.69
79.78

0.83
11.39
9.58
12.16
13.43
94.80
67.96
71.08

0.69
10.23
7.56
9.38
12.29
94.23
57.45
46.40

0.66
12.41
9.01
12.20
14.15
90.38
55.80
53.20

0.54
10.16
7.26
8.97
11.42
93.86
60.60
56.69

0.78
9.09
7.37
8.87
11.80
86.34
55.17
51.43

1.19
10.14
8.26
9.64
12.28
98.07
69.62
64.58

0.77
10.40
8.88
11.87
13.25
86.29
64.46
74.06

0.80
10.58
9.01
11.48
14.35
101.63
63.26
41.36

Structural Changes
New Charters ......................................................
Institutions absorbed by mergers ........................
Failed Institutions ................................................

131
247
2

124
84
1

5
128
0

2
26
1

0
9
0

14
62
1

40
40
1

12
44
0

7
36
0

24
40
0

34
25
0

PRIOR FIRST THREE QUARTERS
(The way it was...)
Number of institutions ................................... 2006
................................ 2004
................................ 2002

8,743
9,024
9,415

3,731
4,204
4,809

4,369
4,223
4,059

523
480
441

120
117
106

1,097
1,136
1,222

1,232
1,223
1,249

1,848
1,968
2,067

2,027
2,104
2,180

1,767
1,840
1,910

772
753
787

Total assets (in billions) ................................ 2006
................................ 2004
................................ 2002

$11,753.6
9,877.2
8,272.8

$194.2
217.7
243.9

$1,283.5
1,177.3
1,113.3

$1,422.5
1,326.4
1,256.3

$8,853.4
7,155.9
5,659.4

$2,962.9
3,403.0
2,826.3

$2,928.6
2,104.7
1,667.5

$2,736.1
1,745.7
1,561.3

$814.5
763.1
429.8

$644.3
588.8
569.2

$1,667.3
1,271.9
1,218.7

Return on assets (%) .................................... 2006
................................ 2004
................................ 2002

1.33
1.29
1.34

1.01
1.02
1.05

1.20
1.19
1.18

1.30
1.48
1.45

1.36
1.28
1.36

1.24
1.14
1.17

1.34
1.40
1.36

1.07
1.13
1.32

1.68
1.51
1.59

1.27
1.35
1.42

1.77
1.61
1.60

Net charge-offs to loans & leases (%) .......... 2006
................................ 2004
................................ 2002

0.36
0.55
0.97

0.14
0.22
0.28

0.14
0.23
0.33

0.19
0.35
0.74

0.43
0.66
1.19

0.56
0.81
1.48

0.16
0.31
0.69

0.24
0.36
0.77

0.39
0.75
1.19

0.20
0.26
0.40

0.56
0.60
0.79

Noncurrent assets plus
OREO to assets (%) .................................. 2006
................................ 2004
................................ 2002

0.50
0.57
0.92

0.72
0.82
0.87

0.57
0.61
0.75

0.46
0.53
0.73

0.49
0.56
1.00

0.43
0.56
1.05

0.31
0.39
0.79

0.54
0.68
1.04

0.89
0.61
0.87

0.62
0.65
0.84

0.63
0.66
0.72

Equity capital ratio (%) .................................. 2006
................................ 2004
................................ 2002

10.41
10.13
9.22

13.04
11.94
11.42

10.46
10.20
10.05

11.00
10.83
10.08

10.25
9.94
8.78

11.13
10.16
8.92

9.76
8.45
9.42

9.03
10.47
8.62

11.18
10.52
10.32

10.36
10.17
9.76

12.20
12.14
9.79

Condition Ratios (%)
Earning assets to total assets ................................
Loss Allowance to:
Loans and leases ................................................
Noncurrent loans and leases ...............................
Noncurrent assets plus
other real estate owned to assets ..........................
Equity capital ratio ..................................................
Core capital (leverage) ratio ...................................
Tier 1 risk-based capital ratio .................................
Total risk-based capital ratio ..................................
Net loans and leases to deposits ...........................
Net loans to total assets .........................................
Domestic deposits to total assets ...........................

* Regions:
New York - Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Puerto Rico,
Rhode Island, Vermont, U.S. Virgin Islands
Atlanta - Alabama, Florida, Georgia, North Carolina, South Carolina, Virginia, West Virginia
Chicago - Illinois, Indiana, Kentucky, Michigan, Ohio, Wisconsin
Kansas City - Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota
Dallas - Arkansas, Colorado, Louisiana, Mississippi, New Mexico, Oklahoma, Tennessee, Texas
San Francisco - Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Pacific Islands, Utah, Washington, Wyoming

FDIC QUARTERLY

9

2007, VOLUME 1, NO. 3

TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Concentration Groups*
September 30, 2007

All Insured
Institutions

Credit Card
Banks

International
Banks

Agricultural
Banks

Commercial
Lenders

Mortgage
Lenders

Consumer
Lenders

Other
Specialized
<$1 Billion

All Other
<$1 Billion

All Other
>$1 Billion

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

1.27
1.37
0.62
0.43
0.91
1.71
0.65
1.99
2.42
1.72
0.52
1.20

3.14
0.00
0.00
0.00
2.46
5.59
2.65
2.31
2.31
2.29
0.12
2.22

1.82
0.61
0.41
0.07
0.89
2.48
0.53
2.48
3.36
2.08
0.66
1.41

1.13
2.19
1.00
0.88
0.68
1.75
1.61
2.09
0.98
2.16
0.53
1.11

1.05
1.30
0.65
0.53
0.74
1.47
0.65
1.65
2.06
1.59
0.58
0.99

1.63
3.34
0.81
0.26
1.21
1.76
0.93
1.30
2.09
0.75
0.41
1.60

0.66
1.73
0.50
0.06
0.65
0.64
0.94
1.62
1.26
1.73
0.10
1.16

1.10
1.35
0.62
2.21
0.52
1.28
1.65
1.82
3.54
1.67
0.85
1.28

1.52
1.41
1.22
0.96
0.86
1.76
1.52
2.14
1.08
2.18
0.51
1.53

1.19
1.18
0.35
0.36
0.97
1.56
0.44
1.66
2.14
1.56
0.31
1.01

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 .......................................................

1.27
1.85
0.73
0.68
0.62
1.57
0.64
1.18
1.93
0.73
0.44
1.08

2.48
0.00
0.00
0.00
1.56
5.71
1.96
1.96
1.99
1.78
0.03
1.85

1.44
1.10
0.56
0.38
0.53
1.91
0.33
1.62
2.18
1.37
0.61
1.05

1.15
3.03
1.33
1.10
0.40
0.90
1.33
0.71
0.71
0.71
0.64
1.02

1.19
1.84
0.73
0.85
0.48
1.48
0.69
0.67
1.49
0.56
0.39
1.01

1.36
2.70
0.85
0.44
0.97
1.45
0.94
0.85
1.73
0.23
1.01
1.33

0.39
0.75
0.64
0.02
0.17
0.51
0.74
0.82
1.14
0.72
0.04
0.62

0.94
2.76
0.94
1.17
0.12
0.72
2.01
0.55
1.21
0.49
0.38
0.95

0.98
2.01
1.26
1.33
0.71
0.80
1.15
0.67
0.80
0.66
0.61
0.93

1.32
1.57
0.59
0.42
0.64
1.81
0.59
0.52
1.87
0.23
0.27
0.96

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 .......................................................

0.16
0.20
0.07
0.10
0.34
0.14
0.43
2.42
4.09
1.38
0.18
0.50

1.55
0.00
0.00
0.00
1.78
1.04
4.51
4.16
4.19
3.94
0.00
3.90

0.29
0.03
0.03
-0.02
0.38
0.32
0.10
2.78
3.48
2.47
0.06
0.65

0.06
0.23
0.08
0.02
0.04
0.08
0.68
0.60
2.31
0.49
0.00
0.19

0.14
0.20
0.08
0.15
0.27
0.14
0.40
1.15
3.51
0.81
0.30
0.28

0.17
0.40
0.03
0.01
0.55
0.13
0.38
3.53
7.42
0.46
0.41
0.29

0.09
0.11
0.01
0.06
0.15
0.06
2.76
1.54
3.00
1.07
0.05
0.98

0.06
0.12
0.05
0.06
0.01
0.06
0.39
0.76
4.30
0.42
0.98
0.29

0.06
0.24
0.06
0.05
0.04
0.06
0.40
0.59
1.88
0.54
0.00
0.17

0.11
0.12
0.02
0.03
0.31
0.07
0.37
1.52
3.91
1.01
0.20
0.35

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 .......................................................

$4,700.4
616.4
939.6
192.8
591.4
2,238.3
1,389.5
1,013.3
384.5
628.8
602.5
7,705.8

$1.8
0.0
0.0
0.0
1.4
0.4
33.0
255.6
226.4
29.2
19.0
309.3

$473.1
9.5
24.7
11.7
92.8
285.4
306.7
214.4
66.7
147.7
206.7
1,200.9

$59.2
5.8
16.1
1.0
1.1
15.6
14.9
6.7
0.4
6.3
25.6
106.5

$2,338.6
517.5
738.8
115.5
209.9
717.6
723.3
270.6
34.5
236.0
196.9
3,529.4

$965.1
25.0
36.6
47.7
102.0
753.0
18.9
36.0
14.8
21.3
5.0
1,024.9

$31.7
0.9
2.0
0.3
11.4
17.0
3.6
40.1
9.4
30.7
1.7
77.1

$6.0
0.5
1.7
0.1
0.2
3.3
1.2
1.8
0.1
1.6
0.8
9.8

$44.5
3.0
10.4
0.8
1.7
25.6
6.4
7.8
0.3
7.6
4.6
63.3

$780.6
54.3
109.3
15.6
171.0
420.4
281.5
180.3
31.9
148.4
142.2
1,384.6

23.7
0.8
5.2
0.2
17.5
0.1

13.3
0.9
8.0
0.0
4.4
0.0

126.3
17.6
47.3
8.9
48.6
3.7

1,250.0
31.7
69.2
16.4
644.6
0.6

Memo: Other Real Estate Owned (in millions)
9,804.8
-15.1
891.1
187.5
5,153.3
2,174.7
All other real estate owned ..............................................
Construction and development .......................................
1,489.0
0.0
0.0
53.3
1,277.6
107.1
Nonfarm nonresidential ...................................................
1,362.2
0.0
6.0
60.3
1,096.5
69.6
Multifamily residential real estate ....................................
318.7
0.0
0.0
3.6
275.0
14.7
1-4 family residential .......................................................
5,342.2
1.0
397.1
45.1
2,218.9
1,965.0
Farmland .........................................................................
67.8
0.0
0.0
25.0
38.3
0.2
* See Table IV-A (page 8) for explanations.
** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.

FDIC QUARTERLY

10

2007, VOLUME 1, NO. 3

Quarterly Banking Profile
TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Size Distribution
September 30, 2007

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

Geographic Regions*
Greater
than $10
Billion

New York

Atlanta

Chicago

Kansas
City

San
Dallas Francisco

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

1.27
1.37
0.62
0.43
0.91
1.71
0.65
1.99
2.42
1.72
0.52
1.20

1.44
1.41
1.14
0.84
0.86
1.95
1.50
2.47
1.89
2.47
0.63
1.44

1.09
1.44
0.82
0.73
0.83
1.27
1.15
1.76
2.32
1.72
0.48
1.11

0.87
1.18
0.56
0.53
0.70
1.07
0.86
1.99
2.23
1.86
0.58
0.95

1.40
1.44
0.52
0.32
0.94
1.85
0.55
2.00
2.44
1.70
0.52
1.25

0.96
1.39
0.69
0.27
0.70
1.10
0.94
2.09
2.26
1.82
0.98
1.19

1.16
1.14
0.48
0.34
0.99
1.54
0.35
1.70
2.76
1.57
0.25
1.00

1.40
1.87
0.87
1.00
0.80
1.85
0.71
1.71
2.06
1.59
0.82
1.22

1.07
1.60
0.68
0.77
1.03
1.25
0.98
2.15
2.21
2.11
0.50
1.16

1.25
0.99
0.72
0.88
0.62
2.16
0.82
1.53
1.20
1.60
0.74
1.18

1.62
1.38
0.34
0.24
1.04
2.31
0.55
2.28
2.95
1.83
0.13
1.42

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 ...........................................

1.27
1.85
0.73
0.68
0.62
1.57
0.64
1.18
1.93
0.73
0.44
1.08

1.14
1.72
1.21
0.91
0.60
1.04
1.42
0.90
0.91
0.90
0.72
1.11

1.09
2.11
0.85
0.99
0.49
0.83
1.09
0.57
1.19
0.52
0.55
1.04

1.17
1.88
0.72
1.21
0.50
1.29
0.77
0.88
1.73
0.43
0.39
1.06

1.33
1.71
0.66
0.44
0.63
1.71
0.56
1.25
1.95
0.77
0.43
1.09

1.02
2.35
1.01
0.36
0.46
0.97
1.18
1.56
2.10
0.69
0.18
1.10

0.93
1.58
0.47
0.59
0.70
1.01
0.42
0.72
1.98
0.56
0.25
0.78

1.68
2.50
1.09
2.08
0.57
2.21
0.60
0.81
1.58
0.55
0.54
1.23

1.99
1.96
0.79
0.72
0.59
3.73
0.82
0.94
1.64
0.40
0.30
1.45

1.12
1.22
0.66
1.35
0.25
1.65
0.72
0.54
1.01
0.44
0.68
0.98

1.29
1.71
0.36
0.29
0.71
1.70
0.47
1.55
1.98
1.25
0.78
1.14

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 ...........................................

0.16
0.20
0.07
0.10
0.34
0.14
0.43
2.42
4.09
1.38
0.18
0.50

0.08
0.19
0.07
0.12
0.13
0.08
0.47
0.52
2.80
0.48
0.15
0.18

0.09
0.19
0.06
0.11
0.10
0.08
0.40
0.91
5.17
0.59
0.20
0.18

0.14
0.22
0.09
0.31
0.22
0.08
0.51
2.03
3.67
1.23
0.31
0.35

0.18
0.19
0.06
0.02
0.37
0.16
0.42
2.57
4.11
1.48
0.17
0.59

0.07
0.19
0.06
0.01
0.18
0.06
0.93
3.28
4.23
1.64
0.22
0.87

0.13
0.20
0.05
0.30
0.31
0.08
0.25
1.13
3.92
0.72
0.28
0.25

0.25
0.28
0.12
0.24
0.34
0.28
0.27
1.42
3.34
0.75
0.13
0.37

0.19
0.18
0.04
0.02
0.50
0.15
0.84
2.67
3.88
1.61
0.11
0.66

0.10
0.14
0.06
0.19
0.20
0.07
0.30
1.06
2.73
0.67
0.37
0.23

0.19
0.13
0.06
0.02
0.43
0.20
0.36
3.25
4.42
2.52
0.10
0.64

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 ...........................................

$4,700.4
616.4
939.6
192.8
591.4
2,238.3
1,389.5
1,013.3
384.5
628.8
602.5
7,705.8

$78.9
11.0
22.1
1.8
2.5
32.0
17.0
9.3
0.1
9.1
12.9
118.1

$708.7
145.8
239.8
27.0
33.1
236.3
120.3
49.7
3.6
46.1
36.2
914.8

$704.7
162.5
228.1
40.9
41.2
218.8
150.7
78.1
27.1
50.9
35.8
969.4

$3,208.1
297.0
449.6
123.0
514.4
1,751.2
1,101.5
876.3
353.7
522.6
517.6
5,703.5

$791.7
63.2
175.0
46.1
57.5
445.8
196.2
272.3
168.9
103.4
88.0
1,348.2

$1,295.1
202.0
245.4
28.1
184.8
615.5
331.9
179.6
20.7
158.9
149.4
1,956.0

$881.4
125.7
200.1
29.9
151.6
358.0
350.8
171.6
43.7
127.8
157.9
1,561.7

$375.1 $298.7
50.4
79.6
85.2
89.1
8.7
6.4
74.1
19.7
138.9
94.0
117.5
74.1
96.5
39.6
42.2
7.2
54.3
32.4
67.3
17.5
656.5 430.0

$1,058.3
95.5
144.8
73.6
103.6
586.1
319.0
253.7
101.8
152.0
122.3
1,753.4

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 .............................................................

9,804.8
1,489.0
1,362.2
318.7
5,342.2
67.8

306.4
48.5
99.3
10.3
135.5
12.7

2,057.5
688.5
622.5
72.1
636.7
34.1

1,400.4
480.2
285.1
91.7
532.1
8.6

6,040.5
271.8
355.3
144.6
4,037.8
12.5

791.3
143.0
156.2
27.1
439.5
12.7

2,198.4
490.7
319.2
148.6
1,191.9
5.1

2,433.1
256.9
363.9
83.3
1,187.6
5.0

1,510.9
225.1
217.3
15.0
553.8
11.5

891.8
265.7
241.2
25.4
306.5
31.8

1,979.3
107.5
64.4
19.3
1,663.0
1.7

* See Table IV-A (page 9) for explanations.
** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.

FDIC QUARTERLY

11

2007, VOLUME 1, NO. 3

TABLE VI-A. Derivatives, All FDIC-Insured Commercial Banks and State-Chartered Savings Banks
(dollar figures in millions;
notional amounts unless otherwise indicated)

%Change
06:3-07:3

Less than
$100 Million

Asset Size Distribution
$1 Billion
$100 Million
to
to
$10 Billion
$1 Billion

Greater than
$10 Billion

2nd Quarter
2007

1st Quarter
2007

4th Quarter
2006

3rd Quarter
2006

ALL DERIVATIVE HOLDERS
1,025
Number of institutions reporting derivatives ……………………………
Total assets of institutions reporting derivatives ………………………
$9,460,401
Total deposits of institutions reporting derivatives ……………………… 6,031,943
Total derivatives …………………………………………………………… 173,374,162

1,058
$9,147,069
5,900,334
153,825,754

1,056
$8,872,062
5,750,636
144,243,311

1,014
$8,834,491
5,751,266
132,182,732

1,014
$8,411,745
5,431,479
127,107,293

1.1
12.5
11.1
36.4

66
$4,813
3,788
128

618
$269,166
212,908
18,050

262
$804,948
580,996
193,153

79
$8,381,474
5,234,251
173,162,830

Derivative Contracts by Underlying Risk Exposure
Interest rate ……………………………………………..…………………
Foreign exchange* …………………………………………………………
Equity ………………………………………………………………………
Commodity & other (excluding credit derivatives) ………………………
Credit ………………………………………………..………………………
Total ………………………………………………..………………………

138,789,184
16,696,567
2,873,509
1,025,685
13,989,217
173,374,162

123,340,590
15,117,713
2,638,709
951,725
11,777,017
153,825,754

116,751,419
14,167,853
2,317,769
840,505
10,165,765
144,243,311

107,434,665
12,564,160
2,270,942
893,310
9,019,655
132,182,732

103,199,181
12,226,802
2,218,658
1,558,264
7,904,389
127,107,293

34.5
36.6
29.5
-34.2
77.0
36.4

117
0
12
0
0
128

17,477
125
228
2
218
18,050

86,265
5,808
100,716
141
223
193,153

138,685,325
16,690,633
2,772,553
1,025,543
13,988,776
173,162,830

Derivative Contracts by Transaction Type
Swaps ………………………………………………..………………………
Futures & forwards ………………………………………………..………
Purchased options ………………………………………………..………
Written options ………………………………………………..……………
Total ………………………………………………..………………………

111,410,085
17,202,716
14,652,412
15,033,435
158,298,648

95,320,189
16,198,682
14,377,620
14,842,430
140,738,921

88,006,970
15,307,492
14,816,440
14,667,326
132,798,228

81,339,865
14,881,758
12,944,893
13,332,489
122,499,005

77,556,008
14,482,709
13,301,484
12,945,812
118,286,013

43.7
18.8
10.2
16.1
33.8

58
23
5
41
128

9,948
1,772
3,730
2,272
17,723

62,861
17,641
106,954
4,825
192,280

111,337,218
17,183,280
14,541,723
15,026,296
158,088,517

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 …………………………………………

30,717
3,119
-20,872
1,664
-104,120
110,905

20,025
5,661
-24,713
1,946
-22,960
23,824

24,447
74,088
-18,845
22,530
9,032
-9,668

23,299
5,324
-17,845
2,658
31,583
-32,745

22,720
4,144
-13,526
2,562
14,670
-14,819

35.2
-24.7
54.3
-35.1
N/M
N/M

0
0
1
0
0
0

21
0
11
0
0
0

106
-19
37
0
-8
6

30,590
3,138
-20,921
1,664
-104,112
110,899

48,916,897
36,310,944
27,875,202
10,094,603
1,831,220
718,390
464,820
330,227
95,900
278,442
308,298
27,617

39,403,802
33,846,133
24,588,177
8,948,450
1,667,700
676,071
442,652
283,520
62,916
280,133
261,410
27,273

32,457,725
33,802,189
24,684,533
8,372,488
1,571,241
624,415
397,237
236,563
74,332
271,647
200,458
23,931

29,551,704
31,385,640
23,273,618
7,690,210
1,415,846
592,897
341,346
220,856
44,858
235,107
272,314
21,581

26,615,376
30,872,442
22,518,236
6,687,566
1,573,062
767,427
333,262
296,151
53,988
496,634
274,378
14,486

83.8
17.6
23.8
50.9
16.4
-6.4
39.5
11.5
77.6
-43.9
12.4
90.6

19
17
41
0
0
0
1
5
0
0
0
0

2,308
10,078
2,694
9
4
3
20
91
0
0
1
0

25,896
25,894
28,253
4,307
17
10
153
410
37
101
29
0

48,888,674
36,274,955
27,844,214
10,090,288
1,831,200
718,377
464,647
329,722
95,863
278,341
308,267
27,617

Risk-Based Capital: Credit Equivalent Amount
Total current exposure to tier 1 capital (%) ………………………………
Total potential future exposure to tier 1 capital (%) ……………………
Total exposure (credit equivalent amount) to tier 1 capital (%) ………

38.0
115.1
153.1

30.7
113.4
144.1

28.3
106.8
135.1

29.2
97.7
126.9

28.6 Blank
99.0 Blank
127.6 Blank

0.4
0.2
0.6

0.2
0.4
0.6

1.4
0.9
2.3

44.2
134.1
178.3

Credit losses on derivatives*** …………………………………………

126.0

6.0

-3.0

-25.0

-19.0

N/M

0.0

2.0

0.0

124.0

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

158
7,977,228
5,082,751

167
7,783,774
4,923,927

155
7,387,988
4,770,607

147
7,223,405
4,712,089

147
6,927,469
4,435,616

7.5
15.2
14.6

7
487
379

44
19,956
15,964

54
239,558
165,978

53
7,717,226
4,900,430

Derivative Contracts by Underlying Risk Exposure
Interest rate ………………………………………………..……………… 136,068,933
Foreign exchange ………………………………………………..………… 15,489,462
Equity ………………………………………………..………………………
2,767,663
Commodity & other ………………………………………………..………
1,024,998
Total ………………………………………………..……………………… 155,351,056

120,820,776
13,683,371
2,622,872
951,236
138,078,255

114,003,892
12,769,131
2,313,326
840,237
129,926,585

104,692,154
11,788,161
2,266,778
893,087
119,640,180

100,300,237
11,207,226
2,214,881
1,558,095
115,280,439

35.7
38.2
25.0
-34.2
34.8

8
0
0
0
8

239
12
3
0
254

29,179
4,860
416
90
34,546

136,039,507
15,484,590
2,767,244
1,024,907
155,316,248

546
1,355
1,827
789
4,517

113.6
48.0
-105.0
-195.9
-48.6

0
0
0
0
0

0
0
0
0
0

3
9
0
-1
11

1,163
1,997
-92
-756
2,311

0.0
0.0

0.0
-0.1

0.2
1.9

1.6
13.4

60
4,377
3,450

575
249,131
196,827

238
735,782
533,703

76
8,311,312
5,189,414

Derivative Contracts by Maturity**
Interest rate contracts ……………………………………. < 1 year
………………………. 1-5 years
………………………. > 5 years
Foreign exchange contracts ……………………..….….. < 1 year
………………………. 1-5 years
………………………. > 5 years
Equity contracts …………………………………………... < 1 year
………………………. 1-5 years
………………………. > 5 years
Commodity & other contracts ……………………………. < 1 year
………………………. 1-5 years
………………………. > 5 years

3rd Quarter
2007

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

1,166
2,005
-92
-757
2,322

2,969
1,264
1,020
877
6,130

2,405
1,831
1,732
1,053
7,021

1,151
1,613
1,214
-111
3,866

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

1.6
13.0

3.9
25.8

4.9
33.0

3.0
19.6

949
9,300,602
5,923,394

972
8,967,425
5,776,744

970
8,637,855
5,582,956

935
8,604,877
5,589,964

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

3.4 Blank
20.7 Blank

934
8,227,057
5,305,613

1.6
13.0
11.6

Derivative Contracts by Underlying Risk Exposure
Interest rate ………………………………………………..………………
2,720,251
2,519,814
2,747,527
2,742,511
2,898,943
-6.2
108
17,238
57,086
Foreign exchange ………………………………………………..…………
120,808
124,526
119,405
111,928
102,685
17.6
0
4
298
Equity ………………………………………………..………………………
105,846
15,837
4,443
4,164
3,777
N/M
12
226
100,300
Commodity & other ………………………………………………..………
687
489
268
223
169
306.5
0
2
51
Total notional amount ………………………………………………..……
2,947,592
2,660,666
2,871,643
2,858,826
3,005,575
-1.9
120
17,469
157,734
All line items are reported on a quarterly basis.
*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

2,645,819
120,506
5,309
635
2,772,269

2007, VOLUME 1, NO. 3

Quarterly Banking Profile
TABLE VII-A. Servicing, Securitization, and Asset Sales Activities (All FDIC-Insured Commercial Banks and State-Chartered Savings Banks)
(dollar figures in millions)

3rd Quarter 2nd Quarter 1st Quarter
2007
2007
2007

4th
Quarter
2006

3rd
Quarter
2006

%Change Less than
06:3-07:3 $100 Million

Asset Size Distribution
$100 Million $1 Billion
to
to
Greater than
$1 Billion
$10 Billion $10 Billion

Assets Securitized and Sold with Servicing Retained or with Recourse
or Other Seller-Provided Credit Enhancements
Number of institutions reporting securitization activities ……………………………………………
123
126
126
123
119
Outstanding Principal Balance by Asset Type
1-4 family residential loans ………………………………………………………………………… $1,105,601 $1,115,865 $1,079,930 $739,041 $453,900
Home equity loans …………………………………………………………………………….………
9,894
10,640
9,339
8,905
9,257
372,481
367,796
362,467
422,983
Credit card receivables …………………………………………………………………………….… 379,662
Auto loans ……………………………………………………………………………………………
10,433
12,547
14,132
16,263
16,781
29,386
27,396
27,737
28,673
25,753
Other consumer loans …………………………………………………………………………….…
Commercial and industrial loans ……………………………………………………………………
15,862
13,193
12,039
10,543
8,404
184,941
162,434
150,404
144,582
135,982
All other loans, leases, and other assets* …………………………………………………………
Total securitized and sold ……………………………………………………………………………. 1,735,779 1,714,556 1,661,376 1,310,475 1,073,059

3.4

13

48

23

39

143.6
6.9
-10.2
-37.8
14.1
88.7
36.0
61.8

$61
0
0
0
0
0
1
62

$292
0
3,328
0
7
30
77
3,733

$10,190
248
11,204
332
0
4,984
799
27,756

$1,095,059
9,646
365,130
10,101
29,379
10,849
184,065
1,704,229

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 ………………

48.5
-0.9
-23.8
-47.6
27.9
-2.0
518.6
0.4
-26.9

20
0
0
0
0
0
1
21
0

5
0
186
0
0
0
26
218
0

44
9
526
15
0
83
46
724
0

6,788
2,327
18,408
411
2,114
316
4,505
34,869
5,095

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 ……………………………………………………………………

6,858
2,336
19,120
426
2,114
399
4,578
35,831
5,095

6,511
2,420
18,711
555
1,768
314
1,053
31,331
5,667

6,047
2,368
17,685
628
1,861
311
1,052
29,952
6,116

6,627
2,332
19,182
724
1,882
348
964
32,059
6,503

4,619
2,358
25,084
813
1,653
407
740
35,674
6,970

2.7
0.7
2.1
2.0
2.8
1.0
0.1
2.3

2.5
0.6
1.9
1.7
2.8
0.5
0.1
2.1

2.1
0.7
1.9
1.5
2.4
0.7
0.1
1.9

3.0
0.7
2.0
1.7
3.0
0.7
0.2
2.4

2.4
0.7
2.0
1.3
3.0
1.2
0.2
2.0

Blank
Blank
Blank
Blank
Blank
Blank
Blank
Blank

0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.1

0.0
0.0
2.8
0.0
0.0
0.0
0.0
2.5

8.8
1.9
1.6
1.0
0.0
1.8
0.2
4.3

2.7
0.6
2.2
2.0
2.8
0.6
0.1
2.3

1.2
0.4
1.7
0.2
2.1
0.7
0.1
1.2

1.2
0.3
1.6
0.2
2.1
0.6
0.2
1.2

1.1
0.4
1.8
0.2
2.0
0.6
0.1
1.1

1.2
0.5
1.7
0.3
2.1
0.7
0.2
1.2

0.9
0.3
1.6
0.2
2.1
0.8
0.2
1.1

Blank
Blank
Blank
Blank
Blank
Blank
Blank
Blank

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
1.4
0.0
0.0
0.0
2.0
1.3

17.3
1.2
1.3
0.1
0.0
1.4
0.1
7.2

1.0
0.3
1.8
0.2
2.1
0.4
0.1
1.1

0.0
0.1
3.3
0.8
1.1
1.3
0.0
0.8

0.0
0.1
2.2
0.5
0.7
0.7
0.0
0.5

0.0
0.1
1.1
0.3
0.4
0.4
0.0
0.3

0.0
0.3
3.8
0.7
1.5
1.3
0.0
1.1

0.0
0.2
2.9
0.5
1.2
1.2
0.0
1.2

Blank
Blank
Blank
Blank
Blank
Blank
Blank
Blank

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
2.4
0.0
0.0
0.0
0.0
2.2

1.6
1.1
2.2
0.4
0.0
3.1
0.0
2.0

0.0
0.1
3.4
0.8
1.1
0.4
0.0
0.8

494
77,451
6,018

651
73,405
2,843

671
61,569
2,863

869
75,225
2,596

728
68,885
2,891

-32.1
12.4
108.2

0
0
0

0
239
0

0
4,349
974

494
72,863
5,044

10
374
6

10
327
9

10
281
1

10
322
5

11
184
0

-9.1
103.3
0.0

0
0
0

0
71
0

0
303
0

10
0
6

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 …………………………………………………………………………

748

735

729

716

708

5.6

157

446

100

45

57,454
775
5,302
21,509
85,040

55,486
601
7,708
8,035
71,831

58,005
1,905
8,198
8,103
76,210

55,777
708
6,668
6,981
70,133

56,002
115
6,781
7,403
70,302

2.6
573.9
-21.8
190.5
21.0

1,003
2
0
1
1,007

6,808
28
188
46
7,071

2,883
12
337
176
3,407

46,760
734
4,776
21,286
73,556

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 ……………………………………………………………………………………

15,829
742
3,671
6,447
26,689

14,869
573
4,453
2,383
22,278

16,112
1,869
4,543
2,428
24,952

13,213
663
4,499
2,530
20,904

13,704
47
4,479
2,502
20,732

15.5
1478.7
-18.0
157.7
28.7

148
2
0
1
151

1,511
5
169
22
1,708

1,995
7
337
89
2,426

12,175
728
3,165
6,335
22,403

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

49
1,477

50
1,375

47
1,348

47
1,135

48
958

2.1
54.2

24
7

15
121

3
100

7
1,249

Total unused liquidity commitments ……………………………………………………….........……

8,242

14,093

5,827

5,857

4,718

74.7

0

0

0

8,242

7,553

61,643

120,033

3,458,202

2
0
57
0
0.7

0
0
123
68
1.6

112
0
153
285
2.5

22,478
365,850
3,301
5,289
8.3

Support for Securitization Facilities Sponsored by Other Institutions

Other
Assets serviced for others** …………………………………………………………………………… 3,647,431 3,569,529 3,494,728 3,392,129 3,072,169
18.7
Asset-backed commercial paper conduits
Credit exposure to conduits sponsored by institutions and others ………………………………
22,592
22,211
21,404
20,714
19,244
17.4
364,656
327,395
306,435
294,279
24.3
Unused liquidity commitments to conduits sponsored by institutions and others ……………
365,850
Net servicing income (for the quarter) ………………………………………………………………
3,634
5,330
3,601
2,159
3,381
7.5
Net securitization income (for the quarter) …………………………………………………....……
5,642
5,437
5,051
2,407
6,832
-17.4
Total credit exposure to Tier 1 capital (%)*** ………………………………………………………
6.5
5.7
5.9
5.8
6.1 Blank
*Line item titled "All other loans and all leases" for quarters prior to March 31, 2006
**The amount of financial assets serviced for others, other than closed-end 1-4 family residential mortgages, is reported when these assets are greater than $10 million
***Total credit exposure includes the sum of the three line items titled "Total credit exposure" reported above

FDIC QUARTERLY

13

2007, VOLUME 1, NO. 3

INSURANCE FUND INDICATORS
I
I
I

Insured Deposit Growth Increases Only Slightly
DIF Reserve Ratio Rises One Basis Point to 1.22 Percent
One Institution Fails During the Third Quarter

From June 30 to September 30, total assets of the
nation’s 8,560 FDIC-insured commercial banks and
savings institutions increased by $446.3 billion (3.6
percent). Total deposits, which increased by $146.0
billion, funded about one third of this asset growth.
Total domestic deposits increased by 0.7 percent in the
third quarter. Domestic time deposits increased by 3.3
percent, while other domestic interest-bearing deposits
increased by only 0.7 percent and domestic noninterest-bearing deposits decreased by 4.5 percent. Over the
12 months ending September 30, total domestic
deposits increased by 4.1 percent, with domestic interest-bearing deposits rising by 5.7 percent but domestic
noninterest-bearing deposits declining by 3.1 percent.

ter of 2007. Over the last 12 months, insured deposits
increased by 3.5 percent. For institutions existing as of
September 30, 2007 and June 30, 2007, insured
deposits increased during the third quarter at 4,652
institutions (55 percent), decreased at 3,816 institutions (45 percent), and remained unchanged at 49
institutions.
The Deposit Insurance Fund (DIF) increased by 1.0
percent ($527 million) during the third quarter to
$51,754 million (unaudited). Accrued assessment
income added $170 million to the DIF during the third
quarter. The fund received a $68 million increase from
unrealized gains on available for sale securities, and
took in $421 million (net of expenses) from interest on
securities and other revenue. The DIF was reduced by
$132 million in additional provisions for insurance losses. The increase in the DIF, together with nearly flat
insured deposit growth, raised the DIF reserve ratio to
1.22 percent on September 30, 2007, one basis point
higher than the June ratio and equal to the reserve
ratio of a year earlier.

Insured institutions in aggregate have reduced their
reliance on domestic deposits steadily since the early
1990s. Domestic deposits funded 72 percent of industry
assets in 1992, but only fund 53 percent today. Foreign
office deposits have funded an increasing share of assets
over the same time period, from 7 percent in 1992 to
11 percent today. Foreign deposits as a percent of assets
have risen from 8.4 percent in September 2005 to 9.4
percent at September 2006 and 11.3 percent at
September 2007. From September 30, 2006 to
September 30, 2007, foreign office deposits increased by
30.5 percent. Federal Home Loan Bank (FHLB)
advances increased by 21.8 percent over the same
twelve-month period. In the third quarter, FHLB
advances funded 6.1 percent of assets, up from 5.0 percent in June and 5.4 percent a year ago.

One FDIC-insured institution failed during the third
quarter of 2007, a federal savings bank with assets of
$2.2 billion. The loss to the DIF is estimated to be
approximately $108 million. For the first nine months
of 2007, two institutions with combined assets of $2.3
billion have failed at an estimated cost of $117 million.
There were no failures of insured institutions during the
first nine months of the previous year.

Estimated insured deposits (including U.S. branches of
foreign banks) increased slightly during the third quarter of 2007 (0.2 percent increase), compared to a slight
decline (0.2 percent decrease) during the second quar-

FDIC QUARTERLY

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

14

2007, VOLUME 1, NO. 3

Quarterly Banking Profile
TABLE I-B. Insurance Fund Balances and Selected Indicators
(dollar figures in millions)

Deposit Insurance Fund
3rd Quarter
2007

2nd Quarter
2007

$51,227

$50,745

170

140

94

10

10

7

5

13

20

640

748

567

476

622

665

478

675

536

243

248

239

248

237

242

224

252

227

132

-3

-73

49

-50

-6

-45

-19

-65

24

1

4

5

1

12

349

4

3

Beginning Fund Balance*………………………………
Changes in Fund Balance:
Assessments earned……………………………………..
Interest earned on investment securities……………….
Operating expenses…………………………………..…..
Provision for insurance losses……………………………
All other income, net of expenses**……………………..
Unrealized gain/(loss) on available-for-sale
securities…………………………………………….......
Total fund balance change……………………………….
Ending Fund Balance*…………………………………..
Percent change from four quarters earlier……………

1st Quarter
2007

4th Quarter
2006

$50,165

$49,992

3rd Quarter
2006
$49,564

2nd Quarter
2006
$49,193

1st Quarter
2006
$48,597

4th Quarter
2005

3rd Quarter
2005

$48,373

$48,023

68

-162

81

-21

-18

-77

-57

-235

-47

527

482

580

173

428

371

596

224

350

51,754

51,227

50,745

50,165

49,992

49,564

49,193

48,597

48,373

3.52

3.36

3.15

3.23

3.35

3.21

3.31

2.29

2.94

Reserve Ratio (%)………………………………………..

1.22

1.21

1.20

1.21

1.22

1.23

1.23

1.25

1.26

Estimated Insured Deposits …………………………..
Percent change from four quarters earlier……………

4,241,307

4,231,656

4,242,146

4,151,966

4,098,430

4,040,405

4,001,955

3,890,941

3,830,950

3.49

4.73

6.00

6.71

6.98

7.52

8.50

7.42

7.63

Assessment Base
Percent change from four quarters earlier……………

6,881,843

6,815,426

6,801,892

6,595,357

6,439,330

6,386,916

6,272,555

6,177,429

6,038,857

6.87

6.71

8.44

6.77

6.63

8.64

8.15

8.88

9.47

Number of institutions reporting………………………

8,571

8,626

8,662

8,693

8,755

8,790

8,803

8,845

8,870

Deposit Insurance Fund Balance
and Insured Deposits*
($ Millions)

DIF Reserve Ratio*
Percent of Insured Deposits

DIF
Balance

1.29

1.28
1.26

1.25
1.23 1.23

6/04

6/04
9/04
12/04
3/05
6/05
9/05
12/05
3/06
6/06
9/06
12/06
3/07
6/07

1.31

12/04

6/05

12/05

1.22

6/06

1.21

1.20

12/06

1.21

1.22

6/07

DIF-Insured
Deposits

46,521
46,990
47,507
47,617
48,023
48,373
48,597
49,193
49,564
49,992
50,165
50,745
51,227

3,531,806
3,559,489
3,622,068
3,688,562
3,757,728
3,830,950
3,890,941
4,001,955
4,040,405
4,098,430
4,151,966
4,242,146
4,231,656

9/07

1.32 1.32

51,754

4,241,307

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

2007***

2006***

2006

2005

2004

2003

2002

65

47

50

52

80

116

136

$18,515

$3,983

$8,265

$6,607

$28,250

$29,917

$38,927

2

0

0

0

4

3

11

$2,252

$0

$0

$0

$166

$1,097

$2,558

* Prior to 2006, amounts represent sum of separate BIF and SAIF amounts.
** First Quarter 2006 includes previously escrowed revenue from SAIF-member exit fees.
*** Through September 30.

FDIC QUARTERLY

15

2007, VOLUME 1, NO. 3

TABLE III-B. Estimated FDIC-Insured Deposits by Type of Institution
(dollar figures in millions)
September 30, 2007

Number of
Institutions

Total
Assets

Domestic
Deposits*

Est. Insured
Deposits

Commercial Banks and Savings Institutions
FDIC-Insured Commercial Banks ……...........................…..……
FDIC-Supervised ……………………..............................………
OCC-Supervised ………………………..............................……
Federal Reserve-Supervised ………….............................……

7,303
4,767
1,659
877

10,792,691
1,842,731
7,492,702
1,457,258

5,571,617
1,354,199
3,400,698
816,720

3,331,209
922,436
1,920,915
487,858

FDIC-Insured Savings Institutions ………....…............................
OTS-Supervised Savings Institutions …...…............................
FDIC-Supervised State Savings Banks …................................

1,257
831
426

1,914,422
1,613,489
300,933

1,169,544
956,061
213,483

903,717
739,217
164,500

Total Commercial Banks and
Savings Institutions …………………….................................…

8,560

12,707,112

6,741,161

4,234,925

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

11

19,868

8,181

6,381

Total FDIC-Insured Institutions …………................................…

8,571

12,726,980

6,749,342

4,241,307

* Excludes $1.44 trillion in foreign office deposits, which are uninsured.

TABLE IV-B. Distribution of Institutions and Assessment Base Among Risk Categories
Quarter Ending June 30, 2007
(dollar figures in billions)

Annual
Rate in
Basis Points

Risk Category
I - Minimum ………………………………………
5
I - Middle ………………………………………… 5.01- 6.00
I - Middle ………………………………………… 6.01- 6.99
I - Maximum ………………………………………
7
II …………………………………………………
10
28
III …………………………………………………
43
IV …………………………………………………

Number of
Institutions

2,931
3,211
1,343
665
413
53
10

Percent of Total
Institutions

Assessment
Base

34.0%
37.2%
15.6%
7.7%
4.8%
0.6%
0.1%

3,949
2,120
436
198
93
5
14

Percent of Total
Assessment
Base

57.9%
31.1%
6.4%
2.9%
1.4%
0.1%
0.2%

Note: Institutions are categorized based on supervisory ratings, debt ratings and financial data as of June 30, 2007.
Rates do not reflect the application of assessment credits. See notes to users for further information on risk categories and rates.

FDIC QUARTERLY

16

2007, VOLUME 1, NO. 3

Quarterly Banking Profile

Notes To Users

Growth rates represent the percentage change over a 12-month period in totals for institutions in the base period to totals for institutions
in the current period.
All data are collected and presented based on the location of each
reporting institution's main office. Reported data may include assets
and liabilities located outside of the reporting institution’s home state.
In addition, institutions may relocate across state lines or change their
charters, resulting in an inter-regional or inter-industry migration,
e.g., institutions can move their home offices between regions, and
savings institutions can convert to commercial banks or commercial
banks may convert to savings institutions.

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

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

ACCOUNTING CHANGES
FASB Statement No. 157 Fair Value Measurements issued in September 2006
and FASB Statement No. 159 The Fair Value Option for Financial Assets and
Financial Liabilities issued in February 2007 – both are effective in 2008
with early adoption permitted in 2007. FAS 157 defines a fair value
measurement framework, while FAS 159 allows banks to elect a fair
value option when assets are recognized on the balance sheet and to
report certain financial assets and liabilities at fair value with subsequent changes in fair value included in earnings. Existing eligible
items can be fair-valued as early as January 2007 under FAS 159, if
a bank adopts FAS 157.
FASB Statement 158 Employers’ Accounting for Defined Benefit Pension and
Other Postretirement Plans – issued in September 2006 requires a bank
to recognize in 2007 the funded status of its postretirement plans on
its balance sheet. An overfunded plan is recognized as an asset and
an underfunded plan is recognized as a liability. An adjustment is
made to equity as accumulated other comprehensive income
(AOCI) upon application of FAS 158 and AOCI is adjusted in subsequent periods as net periodic benefit costs are recognized in earnings.
FASB Statement No. 156 Accounting for Servicing of Financial Assets – issued
in March 2006 and effective in 2007, requires all separately recognized servicing assets and liabilities to be initially measured at fair
value and allows a bank the option to subsequently adjust that
value by periodic revaluation and recognition of earnings or by periodic amortization to earnings.
Purchased Impaired Loans and Debt Securities – Statement of Position 033, Accounting for Certain Loans or Debt Securities Acquired in a Transfer.
The SOP applies to loans and debt securities acquired in fiscal years
beginning after December 15, 2004. In general, this Statement of
Position applies to “purchased impaired loans and debt securities,” i.e.,
loans and debt securities that a bank has purchased, including those
acquired in a purchase business combination, when it is probable, at
the purchase date, that the bank will be unable to collect all contractually required payments receivable. Banks must follow Statement of
Position 03-3 for Call Report purposes. The SOP does not apply to
the loans that a bank has originated, prohibits “carrying over” or creation of valuation allowances in the initial accounting and any subsequent valuation allowances reflect only those losses incurred by the
investor after acquisition.
GNMA Buy-back Option – If an issuer of GNMA securities has the
option to buy back the loans that collateralize the GNMA securities,
when certain delinquency criteria are met, FASB Statement No. 140
requires that loans with this buy-back option must be brought back
on the issuer's books as assets. The rebooking of GNMA loans is
required regardless of whether the issuer intends to exercise the buyback option. The banking agencies clarified in May 2005 that all
GNMA loans that are rebooked because of delinquency should be
reported as past due according to their contractual terms.

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

DATA SOURCES
The financial information appearing in this publication is obtained
primarily from the Federal Financial Institutions Examination
Council (FFIEC) Call Reports and the OTS Thrift Financial Reports
submitted by all FDIC-insured depository institutions. This information is stored on and retrieved from the FDIC’s Research Information
System (RIS) data base.

COMPUTATION METHODOLOGY
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. 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.
All asset and liability figures used in calculating performance ratios
represent average amounts for the period (beginning-of-period
amount plus end-of-period amount plus any interim periods, divided
by the total number of periods). For “pooling-of-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.

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FASB Interpretation No. 45 – In November 2002, the FASB issued
Interpretation No. 45, Guarantor’s Accounting and Disclosure
Requirements for Guarantees, Including Indirect Guarantees of
Indebtedness of Others. This interpretation clarifies that a guarantor is
required to recognize, at the inception of a guarantee (financial standby letters of credit, performance standby letters of credit), a liability
for the fair value of the obligation undertaken in issuing the guarantee. Banks apply the initial recognition and measurement provisions
of Interpretation No. 45 on a prospective basis to guarantees issued or
modified after December 31, 2002, irrespective of the bank’s fiscal
year end. A bank’s previous accounting for guarantees issued prior to
January 1, 2003, is not revised.
FASB Interpretation No. 46 – The FASB issued Interpretation No. 46,
Consolidation of Variable Interest Entities, in January 2003 and revised it
in December 2003. Generally, banks with variable interests in variable interest entities created after December 31, 2003, must consolidate them. The timing of consolidation varies with certain situations
with application as late as 2005. The assets and liabilities of a consolidated variable interest entity are reported on a line-by-line basis
according to the asset and liability categories shown on the bank’s balance sheet, as well as related income items. Most small banks are
unlikely to have any “variable interests” in variable interest entities.

tiveness of the hedge. Derivatives held for purposes other than trading are reported as “other assets” (positive fair values) or “other liabilities” (negative fair values). For a fair value hedge, the gain or loss is
recognized in earnings and “effectively” offsets loss or gain on the
hedged item attributable to the risk being hedged. Any ineffectiveness of the hedge could result in a net gain or loss on the income
statement. Accumulated net gains (losses) on cash flow hedges are
recorded on the balance sheet as “accumulated other comprehensive
income” and the periodic change in the accumulated net gains (losses) for cash flow hedges is reflected directly in equity as the value of
the derivative changes. FASB Statement No. 149, Amendment of
Statement 133 on Derivative Instruments and Hedging Activities
provides guidance on the circumstances in which a loan commitment
must be accounted for as derivative. Under Statement No. 149, loan
commitments that relate to the origination of mortgage loans that will
be held for sale, commonly referred to as interest rate lock commitments, must be accounted for as derivatives on the balance sheet by
the issuer of the commitment.

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,
and other assets.
All other liabilities – bank's liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses,
fair market value of derivatives, and other liabilities.
Assessment base –assessable deposits consist of DIF deposits (deposits
insured by the FDIC Deposit Insurance Fund) in banks’ domestic
offices with certain adjustments.
Assets securitized and sold – total outstanding principal balance of
assets securitized and sold with servicing retained or other sellerprovided credit enhancements.
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.

FASB Statement No. 123 (Revised 2004) and Share-Based Payments
– requires all entities to recognize compensation expense in an
amount equal to the fair value of share-based payments, e.g., stock
options and restricted stock, granted to employees. As of January 2006
all banks must adopt FAS 123(R). The compensation cost is typically
recognized over the vesting period with a corresponding credit to
equity. The recording of the compensation cost also gives rise to a
deferred tax asset.
Goodwill and intangible assets – FAS 141 terminates the use of pooling-of-interest accounting for business combinations after 2001 and
requires purchase accounting. Under FAS 142 amortization of goodwill is eliminated. Only intangible assets other than goodwill are
amortized each quarter. In addition companies are required to test for
impairment of both goodwill and other intangibles once each fiscal
year. The year 2002, the first fiscal year affected by this accounting
change, has been designated a transitional year and the amount of initial impairments are to be recorded as extraordinary losses on a “net of
tax” basis (and not as noninterest expense). Subsequent annual
review of intangibles and goodwill impairment may require additional
noninterest expense recognition. FASB Statement No. 147 clarifies
that acquisitions of financial institutions (except transactions between
two or more mutual enterprises), including branch acquisitions that
meet the definition of a business combination, should be accounted
for by the purchase method under FASB Statement No. 141. This
accounting standard includes transition provisions that apply to
unidentifiable intangible assets previously accounted for in accordance
with FASB Statement No. 72. If the transaction (such as a branch
acquisition) in which an unidentifiable intangible asset arose does not
meet the definition of a business combination, this intangible asset is
not be reported as “Goodwill” on the Call Report balance sheet.
Rather, this unidentifiable intangible asset is reported as “Other intangible assets,” and must continue to be amortized and the amortization
expense should be reported in the Call Report income statement.

FASB Statement No. 133 Accounting for Derivative Instruments and Hedging
Activities – All banks must recognize derivatives as either assets or liabilities on the balance sheet, measured at fair value. A derivative may
be specifically designated as a “fair value hedge,” a “cash flow hedge,”
or a hedge of a foreign currency exposure. The accounting for
changes in the value of a derivative (gains and losses) depends on the
intended use of the derivative, its resulting designation, and the effec-

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Quarterly Banking Profile
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.
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.

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

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. Prior to June
30, 2000, the uninsured estimate is calculated as the sum of the excess
amounts in accounts over $100,000. Beginning June 30, 2000, the
amount of estimated uninsured deposits is adjusted to consider a
financial institution's own estimate of uninsured deposits when such
an estimate is reported. Beginning in 2006, the uninsured deposits
estimate also considers IRA accounts over $250,000.
Failed/assisted institutions – an institution fails when regulators take
control of the institution, placing the assets and liabilities into a
bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover
losses. An institution is defined as “assisted” when the institution
remains open and receives some insurance funds in order to continue
operating.
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.

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assessment rates (in basis points) for each risk category. Supervisory
Group A generally includes institutions with CAMELS composite ratings of 1 or 2; Supervisory Group B generally includes institutions
with a CAMELS composite rating of 3; and Supervisory Group C
generally includes institutions with CAMELS composite ratings of 4
or 5. For purposes of risk-based assessment capital groups, undercapitalized includes institutions that are significantly or critically undercapitalized.
Assessment rates are 3 basis points above the base rate schedule. The
FDIC may adjust rates up or down by 3 basis points from the base rate
schedule without notice and comment, provided that any single
adjustment from one quarter to the next cannot move rates more
than 3 basis points.
For most institutions in Risk Category I, the assessment rate assigned
will be based on a combination of financial ratios and CAMELS component ratings.
For large institutions in Risk Category I (generally those with at least
$10 billion in assets) that have long-term debt issuer ratings, assessment rates will be determined by weighting CAMELS component ratings 50 percent and long-term debt issuer ratings 50 percent. For all
large Risk Category I institutions, additional risk factors will be considered to determine whether assessment rates should be adjusted.
This additional information includes market data, financial performance measures, considerations of the ability of an institution to withstand financial stress, and loss severity indicators. Any adjustment will
be limited to no more than ½ basis point.
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 will generally be due on the 30th day of
the last month of the quarter following the assessment period.
Supervisory rating changes will be effective for assessment purposes as
of the examination transmittal date. For institutions with long-term
debt issuer ratings, changes in ratings will be effective for assessment
purposes as of the date the change was announced.
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 100 percent. A
conversion factor is used to assign a balance sheet equivalent amount
for selected off-balance-sheet 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-to-maturity and
available-for-sale securities, before adjustments for income taxes.
Thrift Financial Report (TFR) filers also include gains (losses) on the
sales of assets held for sale.
Seller’s interest in institution’s own securitizations – the reporting bank’s
ownership interest in loans and other assets that have been securitized, except an interest that is a form of recourse or other seller-provided credit enhancement. Seller’s interests differ from the securities
issued to investors by the securitization structure. The principal
amount of a seller’s interest is generally equal to the total principal
amount of the pool of assets included in the securitization structure
less the principal amount of those assets attributable to investors, i.e.,
in the form of securities issued to investors.
Subchapter S Corporation – A Subchapter S corporation is 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

ing 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”. For all insured commercial banks and for insured savings banks
for which the FDIC is the primary federal regulator, FDIC composite
ratings are used. For all institutions whose primary federal regulator is
the OTS, the OTS composite rating is 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 – net income (including gains or losses on securities
and extraordinary items) as a percentage of average total assets. The
basic yardstick of bank profitability.
Return on equity – net income (including gains or losses on securities
and extraordinary items) as a percentage of average total equity capital.
Risk-based capital groups – definition:
(Percent)

Well-capitalized
Adequately
capitalized
Undercapitalized
Significantly
undercapitalized
Critically
undercapitalized

Total
Risk-Based
Capital *

Tier 1
Risk-Based
Capital *

Tier 1
Leverage

Tangible
Equity

>10

and

>6

and

>5

—

>8
>6

and
and

>4
>3

and
and

>4
>3

—
—

<6

or

<3

or

<3

—

—

and

>2

—

<2

*As a percentage of risk-weighted assets.

Risk Categories and Assessment Rate Schedule – The current risk categories and assessment rate schedule became effective January 1, 2007.
Capital ratios and supervisory ratings distinguish one risk category
from another. The following table shows the relationship of risk categories (I, II, III, IV) to capital and supervisory groups as well as the
Supervisory Group

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

FDIC QUARTERLY

A

B

I
5-7 bps

C

II
10 bps

III
28 bps

III
28 bps

IV
43 bps

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Quarterly Banking Profile
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.)
Volatile liabilities – the sum of large-denomination time deposits, foreign-office deposits, federal funds purchased, securities sold under
agreements to repurchase, and other borrowings.
Yield on earning assets – total interest, dividend and fee income earned
on loans and investments as a percentage of average earning assets.

corporate level. This can have the effect of reducing institutions’
reported taxes and increasing their after-tax earnings.
Trust assets – market value, or other reasonably available value of
fiduciary and related assets, to include marketable securities, and
other financial and physical assets. Common physical assets held in
fiduciary accounts include real estate, equipment, collectibles, and
household goods. Such fiduciary assets are not included in the
assets of the financial institution.
Unearned income & contra accounts – unearned income for Call Report
filers only.

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Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102