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Quarterly Banking Profile

Third Quarter 2009

INSURED INSTITUTION PERFORMANCE
■	
■	
■	
■	
■	

Industry Posts Net Profit of $2.8 Billion
Increased Revenues, Lower Securities Losses Offset Higher Loan-Loss Provisions
Net Interest Margins Improve at Most Institutions
Troubled Loans Continue to Rise, but Rate of Growth Slows
Loan Balances Decline by 2.8 Percent in the Quarter

Earnings Register Modest Improvement

Net Interest Margin Rises to Four-Year High

Rising loan-loss provisions continued to dominate
industry results, but growth in operating revenues,
combined with appreciation in securities values, helped
the industry post an aggregate net profit. Insured institutions earned $2.8 billion in net income in the third
quarter of 2009, more than three times the $879 million
they earned a year earlier and an improvement over the
$4.3 billion net loss posted in the second quarter of
2009. Growth in net interest income, lower realized
losses on securities and other assets, higher noninterest
income, and lower noninterest expenses, all contributed
to the year-over-year increase in net income. Only 43
percent of all institutions reported higher quarterly
earnings compared to a year ago, but this is the highest
proportion reporting improved earnings in the past six
quarters. More than one in four institutions (26.5
percent) was unprofitable in the third quarter, up
slightly from 24.6 percent a year ago.

Net interest income was $4.6 billion (4.8 percent) higher
than in the third quarter of 2008. The average net interest margin (NIM) in the third quarter was 3.51 percent,
the highest quarterly average since the third quarter of
2005. Almost two-thirds of all institutions (62.1 percent)
reported higher NIMs than in the second quarter, but
only 42.2 percent registered year-over-year NIM improvement. Realized losses on securities and other assets
totaled $4.1 billion, which was $3.8 billion less than the
$7.9 billion in losses the industry experienced a year
earlier. Noninterest income was $4.0 billion (6.8 percent)
higher, as net gains on loan sales were up by $2.7 billion
and servicing fees rose by $1.9 billion (45.8 percent).
Total noninterest expense was $1.6 billion (1.7 percent)
below the level of a year earlier, the first time since the
fourth quarter of 2006 that the industry has experienced a
year-over-year decline in quarterly noninterest expense.
Lower expenses for goodwill impairment and other intangible asset charges (down $1.2 billion, or 23.7 percent)
were chiefly responsible for the decline in total noninterest expenses, but expenses for premises and fixed assets
were lower as well, falling by $230 million (2.0 percent).

Chart 1

Chart 2
Major Factors Affecting Earnings

Quarterly Net Income
$ Billions
60

3rd Quarter 2009 vs. 3rd Quarter 2008
($ Billions)
16
Positive Factors

50
40
30

34.0 33.2 34.7 32.6

36.9 38.0 38.0 35.3 35.6 36.8

14
28.7

12

19.3

20
10

4.7 0.9

0.5

0

10

2.8

5.5

6

Securities and Other Gains/Losses, Net
Net Operating Income

-20
-30
-40

4
-37.6

1

2 3
2005

FDIC Quarterly

4

1

2 3 4
2006

1

2 3 4
2007

1

2 3 4
2008

1

$1.6

Decrease in
Noninterest Expense

$3.8

Decline in Realized
Losses on Securities

$4.0

Increase in
Noninterest Income

8

-4.3

-10

2

2 3
2009

Negative Factor

$14.0
$11.3

Increase in
Loan-Loss
Provisions

$4.6
Increase in Net
Interest Income

0

1

2009, Volume 3, No. 4

loans were $4.6 billion (117.5 percent) higher than a
year ago. Charge-offs of credit card loans were $4.4
billion (78.2 percent) higher, residential mortgage
charge-offs were up by $3.7 billion (63.4 percent),
charge-offs of real estate construction and development
(C&D) loans rose by $3.1 billion (68.1 percent), and
charge-offs of home equity lines of credit were $2.2
billion (78.4 percent) higher.

Loss Provisions Surpass $60 Billion for Fourth
Quarter in a Row
Provisions for loan and lease losses totaled $62.5 billion,
marking the fourth consecutive quarter that industry
provisions have exceeded $60 billion. The third quarter
total was $11.3 billion (22.2 percent) higher than a
year earlier, but it was $4.8 billion (7.1 percent) less
than the amount that insured institutions set aside in
the second quarter. It was also the smallest year-overyear increase in quarterly loss provisions in the past
eight quarters. Almost two out of three institutions
(62.6 percent) increased their loss provisions over yearearlier levels.

Growth in Noncurrent Loans Slows
The amount of loans that were noncurrent (90 days or
more past due or in nonaccrual status) also continued
to rise. Noncurrent loans and leases increased by
$34.7 billion (10.5 percent) in the third quarter, to
$366.6 billion, or 4.94 percent of all loans and leases,
the highest noncurrent rate registered in the 26 years
that insured institutions have reported noncurrent loan
data. Noncurrent residential mortgage loans increased
by $19.0 billion (13.9 percent), noncurrent C&I loans
rose by $7.3 billion (19.2 percent), and noncurrent real
estate loans secured by nonfarm nonresidential real
estate properties increased by $5.7 billion (18.2
percent). The increase in noncurrent loans was the
smallest in the past four quarters, as the rate of growth
in noncurrent loans slowed for the second quarter in
a row.

Loan Losses Remain High
Net charge-offs continued to rise, registering a yearover-year increase for an 11th consecutive quarter.
Insured institutions charged off $50.8 billion (net) in
the quarter, an increase of $22.6 billion (80.5 percent)
compared to the third quarter of 2008. Net charge-offs
were higher, year-over-year, at 60 percent of insured
institutions. The annualized net charge-off rate rose to
2.71 percent, from 1.43 percent a year earlier and 2.56
percent in the second quarter. This is the highest annualized net charge-off rate in any quarter since insured
institutions began reporting quarterly income and
expenses in 1984, and it marks the third time in the
past four quarters that the net charge-off rate has
reached a new high. The year-over-year increase in
charge-offs was led by loans to commercial and industrial (C&I) borrowers, but all major loan categories had
sizable increases in charge-offs. Net charge-offs of C&I

Reserve Coverage Continues to Erode
In the face of the persistent rise in troubled loans,
insured institutions continued to build their loan-loss
reserves. The industry set aside $11.7 billion more in

Chart 3

Chart 4

Quarterly Net Interest Margins, Annualized
Percent
4.5

$ Billions
110

Assets < $1 Billion

90

4.0
3.70

50

3.48

30

3.0

10

Assets > $1 Billion
2.5

Quarterly Change in Noncurrent Loans
Quarterly Net Charge-Offs

70

3.5

Quarterly Net Charge-Offs and
Change in Noncurrent Loans

1

2 3 4
2005

FDIC Quarterly

1

2 3 4
2006

1

2 3 4
2007

1

2 3 4
2008

1

-10

2 3
2009

2

1

2 3
2006

4

1

2 3
2007

4

1

2 3
2008

4

1

2

3
2009

2009, Volume 3, No. 4

Quarterly Banking Profile
loan-loss provisions than it charged off in the third
quarter, contributing to a $9.2 billion (4.4 percent)
increase in total reserves. This was the smallest quarterly increase in reserves in the past eight quarters, but
it lifted the industry’s ratio of reserves to total loans and
leases from 2.77 percent to 2.97 percent. However,
growth in reserves continued to lag the rise in noncurrent loans, and the industry’s ratio of reserves to
noncurrent loans declined for a 14th consecutive quarter, from 63.6 percent to 60.1 percent.

Quarterly Decline in Loan Balances Is Largest
on Record
Total assets of insured institutions fell for a third
consecutive quarter. The $54.3 billion (0.4 percent)
decline followed a $237.9 billion decrease in industry
assets in the second quarter and a $303.2 billion drop in
the first quarter. The decline in assets was led by falling
loan balances. Total loan and lease balances declined
by $210.4 billion (2.8 percent) during the quarter. This
is the largest percentage decline in loan balances in any
quarter since insured institutions began reporting quarterly results in 1984. C&I loans fell by $89.1 billion
(6.5 percent), residential mortgage loan balances
declined by $83.7 billion (4.2 percent), and real estate
C&D loans dropped by $43.6 billion (8.1 percent).
The reduction in loan balances was partially offset by
increased balances at Federal Reserve banks (up by
$142.4 billion, or 36.7 percent) and by a $59.7 billion
(2.6 percent) increase in securities. Banks increased
their holdings of U.S. Treasury securities by $28.6
billion (49.3 percent) during the quarter. Much of the
increase in other securities balances reflected higher
market values for available-for-sale securities.

Rising Securities Values Boost Equity Capital
The industry’s total bank equity capital (excluding
minority interests in consolidated subsidiaries) increased
by $40.2 billion (2.9 percent) in the third quarter. Most
of the increase was a result of appreciation in the values
of securities and other investments. Accumulated other
comprehensive income, which includes unrealized
gains and losses on securities held for sale, increased by
$30.5 billion during the quarter. Tier 1 leverage capital,
which does not include other comprehensive income,
increased by $15.6 billion (1.4 percent). The industry’s
equity to assets ratio increased from 10.55 percent to
10.90 percent during the quarter. The average regulatory capital ratios for the industry (tier 1 leverage ratio,
tier 1 risk-based capital ratio, and total risk-based capital ratio) all improved during the quarter as well, and
are now at their highest levels in the 19 years since
current risk-based capital standards were enacted.

Reliance on Deposit Funding Increases
Total deposits increased by $79.8 billion (0.9 percent),
as insured institutions continued to reduce their reliance on nondeposit funding sources. Deposits in
­domestic offices fell by $2.0 billion, with non-interestbearing deposits registering a $17.7 billion (1.2 percent)

Chart 5
Percent
14

Chart 6
Capital Ratios
Percent
25

Total Risk-Based Capital

13

20

12

15

11

Tier 1 Risk-Based Capital

10

Twelve-Month Loan Growth Rates

10
5

Equity to Assets

0

9

Core Capital (Leverage)

-5

8

-10

7

-15

6
1

2 3 4
2005

FDIC Quarterly

1

2 3 4
2006

1

2 3 4
2007

1

2 3 4
2008

1

Commercial Real Estate
Residential Real Estate
C&I Loans
Consumer Loans

-20

2 3
2009

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

3

2009, Volume 3, No. 4

decline. Deposits in foreign offices increased by $81.9
billion (5.6 percent), following a $51.0 billion increase
in the second quarter. Nondeposit liabilities declined by
$176.1 billion (6.2 percent), including a $59 billion
(9.3 percent) decline in Federal Home Loan Bank
borrowings and an $86.6 billion (23.8 percent) decline
in other short-term borrowings by Call reporters.
At the end of September, deposits funded 68.7 percent
of total industry assets, the highest proportion since
June 30, 1997.

absorbed by mergers during the quarter, while 50 institutions failed. This is the largest number of failures in a
quarter since the fourth quarter of 1992, when 55
insured institutions failed. Only three insured institutions were chartered in the quarter, the smallest quarterly total since World War II. The number of insured
institutions on the FDIC’s “Problem List” rose from
416 to 552 during the quarter, and total assets of “problem” institutions increased from $299.8 billion to
$345.9 billion. Both the number and assets of “problem” institutions are now at the highest level since the
end of 1993.

Only Three New Charters Were Added in the
Third Quarter

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

The number of insured institutions reporting financial
results fell to 8,099 in the third quarter, from 8,195 in
the second quarter. Forty-seven institutions were

Chart 7

Chart 8
Quarterly Change in Deposits and
Nondeposit Liabilities

Quarterly Change
($ Billions)
400

Deposits

150

171

1400

Nondeposit Liabilities

308

300
200

Number of FDIC-Insured “Problem” Institutions
Institutions on the FDIC’s “Problem List”
1600

1200

155 162

1000

100

67

80

800

7

0
-100

-66

600

-23
-82

400

-200

-176

200

-300
-400

-320

-337

0
1991

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

FDIC Quarterly

4

1993

1995

1997

1999

2001

2003

2005

2007 2009

2009, Volume 3, No. 4

Quarterly Banking Profile
TABLE I-A. Selected Indicators, All FDIC-Insured Institutions*
Return on assets (%)������������������������������������������������������������������������������������������������������
Return on equity (%)�������������������������������������������������������������������������������������������������������
Core capital (leverage) ratio (%)������������������������������������������������������������������������������������
Noncurrent assets plus other real estate owned to assets (%)������������������������������������
Net charge-offs to loans (%)������������������������������������������������������������������������������������������
Asset growth rate (%)�����������������������������������������������������������������������������������������������������
Net interest margin (%)���������������������������������������������������������������������������������������������������
Net operating income growth (%)����������������������������������������������������������������������������������
Number of institutions reporting�������������������������������������������������������������������������������������
Commercial banks���������������������������������������������������������������������������������������������������
Savings institutions�������������������������������������������������������������������������������������������������
Percentage of unprofitable institutions (%)��������������������������������������������������������������������
Number of problem institutions��������������������������������������������������������������������������������������
Assets of problem institutions (in billions)���������������������������������������������������������������������
Number of failed institutions������������������������������������������������������������������������������������������
Number of assisted institutions��������������������������������������������������������������������������������������

2009**
0.10
0.93
8.54
3.07
2.38
-2.40
3.46
-62.22
8,099
6,911
1,188
28.31
552
$346
95
0

2008**
0.32
3.26
7.81
1.55
1.18
6.82
3.33
-63.63
8,384
7,146
1,238
21.34
171
$116
13
0

2008
0.04
0.36
7.47
1.89
1.29
6.20
3.16
-90.50
8,305
7,086
1,219
24.79
252
$159
25
5

2007
0.81
7.75
7.97
0.95
0.59
9.89
3.29
-27.58
8,534
7,283
1,251
12.08
76
$22
3
0

2006
1.28
12.30
8.22
0.54
0.39
9.04
3.31
8.53
8,680
7,401
1,279
7.94
50
$8
0
0

2005
1.28
12.43
8.25
0.50
0.49
7.63
3.47
11.39
8,833
7,526
1,307
6.22
52
$7
0
0

2004
1.28
13.20
8.11
0.53
0.56
11.37
3.52
3.99
8,976
7,631
1,345
5.97
80
$28
4
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.

TABLE II-A. Aggregate Condition and Income Data, All FDIC-Insured Institutions
3rd Quarter
2009
8,099
2,069,405

2nd Quarter
2009
8,195
2,093,060

3nd Quarter
2008
8,384
2,170,931

%Change
08Q3-09Q3
-3.4
-4.7

$13,247,285
4,526,678
1,928,497
1,089,930
492,213
667,459
1,275,647
1,040,183
392,974
60,014
515,034
2,613
7,414,944
220,268
7,194,676
2,396,639
37,165
425,113
3,193,693

$13,301,549
4,651,631
2,012,172
1,086,490
535,779
672,908
1,364,766
1,037,132
398,233
58,348
516,329
2,903
7,625,303
211,073
7,414,230
2,336,976
33,945
431,398
3,085,001

$13,572,987
4,749,530
2,101,972
1,043,580
614,730
652,106
1,502,746
1,082,714
411,627
59,612
597,963
2,792
7,989,773
156,445
7,833,328
2,025,434
22,460
484,147
3,207,618

-2.4
-4.7
-8.3
4.4
-19.9
2.4
-15.1
-3.9
-4.5
0.7
-13.9
-6.4
-7.2
40.8
-8.2
18.3
65.5
-12.2
-0.4

Total liabilities and capital����������������������������������������������������������������������������������������������
Deposits�������������������������������������������������������������������������������������������������������������������
		
Domestic office deposits���������������������������������������������������������������������������������
		
Foreign office deposits������������������������������������������������������������������������������������
Other borrowed funds���������������������������������������������������������������������������������������������
Subordinated debt���������������������������������������������������������������������������������������������������
All other liabilities����������������������������������������������������������������������������������������������������
Equity capital�����������������������������������������������������������������������������������������������������������

13,247,285
9,100,946
7,553,140
1,547,805
1,997,419
161,256
524,050
1,463,614

13,301,549
9,021,120
7,555,189
1,465,932
2,162,868
168,125
527,796
1,421,639

13,572,987
8,727,755
7,222,233
1,505,522
2,732,578
176,833
629,555
1,306,266

-2.4
4.3
4.6
2.8
-26.9
-8.8
-16.8
12.0

Loans and leases 30-89 days past due�������������������������������������������������������������������������
Noncurrent loans and leases�����������������������������������������������������������������������������������������
Restructured loans and leases��������������������������������������������������������������������������������������
Mortgage-backed securities������������������������������������������������������������������������������������������
Earning assets����������������������������������������������������������������������������������������������������������������
FHLB Advances��������������������������������������������������������������������������������������������������������������
Unused loan commitments���������������������������������������������������������������������������������������������
Trust assets��������������������������������������������������������������������������������������������������������������������
Assets securitized and sold�������������������������������������������������������������������������������������������
Notional amount of derivatives***����������������������������������������������������������������������������������

142,698
366,621
50,788
1,350,429
11,407,203
575,624
6,125,546
20,252,884
1,857,417
206,393,244

141,100
331,880
46,412
1,365,640
11,461,540
634,615
6,307,959
17,502,516
1,865,353
204,956,766

121,609
187,355
21,335
1,261,315
11,492,836
911,487
7,852,407
19,739,794
1,892,416
177,121,812

17.3
95.7
138.0
7.1
-0.7
-36.8
-22.0
2.6
-1.8
16.5

(dollar figures in millions)
Number of institutions reporting�������������������������������������������������������������������������������������
Total employees (full-time equivalent)���������������������������������������������������������������������������
CONDITION DATA
Total assets���������������������������������������������������������������������������������������������������������������������
Loans secured by real estate����������������������������������������������������������������������������������
		
1-4 family residential mortgages���������������������������������������������������������������������
		
Nonfarm nonresidential�����������������������������������������������������������������������������������
		
Construction and development
		
Home equity lines���������������������������������������������������������������������������������������������
Commercial & industrial loans��������������������������������������������������������������������������������
Loans to individuals�������������������������������������������������������������������������������������������������
		
Credit cards������������������������������������������������������������������������������������������������������
Farm loans���������������������������������������������������������������������������������������������������������������
Other loans & leases�����������������������������������������������������������������������������������������������
Less: Unearned income������������������������������������������������������������������������������������������
Total loans & leases������������������������������������������������������������������������������������������������
Less: Reserve for losses�����������������������������������������������������������������������������������������
Net loans and leases�����������������������������������������������������������������������������������������������
Securities�����������������������������������������������������������������������������������������������������������������
Other real estate owned������������������������������������������������������������������������������������������
Goodwill and other intangibles�������������������������������������������������������������������������������
All other assets��������������������������������������������������������������������������������������������������������

INCOME DATA
Total interest income�������������������������������������������������������������������
Total interest expense�����������������������������������������������������������������
Net interest income��������������������������������������������������������������
Provision for loan and lease losses��������������������������������������������
Total noninterest income�������������������������������������������������������������
Total noninterest expense�����������������������������������������������������������
Securities gains (losses)�������������������������������������������������������������
Applicable income taxes�������������������������������������������������������������
Extraordinary gains, net��������������������������������������������������������������
Net income����������������������������������������������������������������������������
Net charge-offs����������������������������������������������������������������������������
Cash dividends����������������������������������������������������������������������������
Retained earnings�����������������������������������������������������������������������
Net operating income�����������������������������������������������������������

First Three
Qtrs 2009
$413,593
115,309
298,284
188,577
198,396
287,787
-1,551
4,884
-3,626
9,590
135,868
33,458
-23,868
13,867

First Three
Qtrs 2008
$487,007
207,939
279,068
125,190
175,549
274,342
-8,325
15,733
657
31,685
68,840
42,613
-10,928
36,706

*** Call Report filers only.

FDIC Quarterly

%Change
-15.1
-44.6
6.9
50.6
13.0
4.9
N/M
-69.0
N/M
-69.7
97.4
-21.5
N/M
-62.2

3rd Quarter
2009
$134,728
34,809
99,919
62,511
62,211
92,362
-4,084
115
31
2,833
50,779
20,093
-17,260
5,136

3rd Quarter
2008
$159,079
63,776
95,303
51,166
58,250
93,935
-7,881
790
1,098
879
28,135
10,988
-10,109
5,421

%Change
08Q3-09Q3
-15.3
-45.4
4.8
22.2
6.8
-1.7
N/M
-85.5
-97.2
222.4
80.5
82.9
N/M
-5.3

N/M - Not Meaningful.

5

2009, Volume 3, No. 4

TABLE III-A. Third Quarter 2009, All FDIC-Insured Institutions
Asset Concentration Groups*
Third quarter
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������
8,099
Commercial banks�������������������������������������
6,911
Savings institutions�����������������������������������
1,188
Total assets (in billions)������������������������������������
$13,247.3
Commercial banks�������������������������������������
11,866.4
Savings institutions�����������������������������������
1,380.9
Total deposits (in billions)���������������������������������
9,100.9
Commercial banks�������������������������������������
8,178.2
Savings institutions�����������������������������������
922.7
Net income (in millions)������������������������������������
2,833
Commercial banks�������������������������������������
1,457
Savings institutions�����������������������������������
1,377
Performance Ratios (annualized, %)
Yield on earning assets������������������������������������
Cost of funding earning assets������������������������
Net interest margin������������������������������������
Noninterest income to assets���������������������������
Noninterest expense to assets�������������������������
Loan and lease loss provision to assets����������
Net operating income to assets�����������������������
Pretax return on assets������������������������������������
Return on assets�����������������������������������������������
Return on equity�����������������������������������������������
Net charge-offs to loans and leases����������������
Loan and lease loss provision to
net charge-offs������������������������������������������
Efficiency ratio��������������������������������������������������
% of unprofitable institutions����������������������������
% of institutions with earnings gains����������������

Credit
Card
International Agricultural Commercial
Banks
Banks
Banks
Lenders
24
4
1,578
4,541
20
4
1,572
4,059
4
0
6
482
$500.5
$3,183.4
$177.5
$5,184.8
478.8
3,183.4
176.7
4,693.0
21.7
0.0
0.7
491.8
266.8
1,978.9
142.8
3,852.7
255.4
1,978.9
142.2
3,515.3
11.3
0.0
0.6
337.4
416
-310
419
-3,318
185
-310
417
-4,038
232
0
2
721

Mortgage Consumer
Lenders
Lenders
796
81
212
64
584
17
$852.3
$95.8
178.2
52.4
674.1
43.4
509.7
78.8
66.0
40.9
443.7
37.9
583
48
738
88
-156
-41

Other
Specialized
All Other
<$1 Billion
<$1 Billion
284
732
256
679
28
53
$37.8
$102.7
33.8
89.3
4.1
13.4
28.1
84.3
25.5
73.8
2.7
10.5
96
189
43
207
52
-18

All Other
>$1 Billion
59
45
14
$3,112.5
2,980.8
131.7
2,158.9
2,080.2
78.7
4,711
4,126
585

4.73
1.22
3.51
1.88
2.79
1.89
0.16
0.09
0.09
0.80
2.71

11.50
1.39
10.11
5.44
5.63
7.55
0.33
0.43
0.34
1.36
10.67

3.76
0.88
2.88
1.97
2.65
1.36
0.33
-0.21
-0.04
-0.46
3.18

5.68
1.67
4.01
0.68
2.74
0.53
0.94
1.11
0.95
8.48
0.59

5.00
1.43
3.57
1.43
2.85
1.95
-0.25
-0.24
-0.26
-2.37
2.12

4.92
1.70
3.22
0.84
1.88
1.18
0.32
0.65
0.27
2.94
1.59

5.68
1.56
4.12
1.75
2.66
2.68
0.20
0.27
0.20
1.90
2.64

3.78
1.09
2.70
8.22
8.72
0.21
1.16
1.49
1.01
5.86
0.79

5.41
1.62
3.80
0.85
3.00
0.41
0.77
0.89
0.74
6.32
0.57

4.04
0.97
3.07
2.28
2.56
1.75
0.50
0.63
0.60
5.45
2.63

123.10

101.20

117.03

133.23

132.44

113.95

129.25

110.55

127.00

132.23

54.63
26.55
43.25

38.21
33.33
50.00

59.58
50.00
0.00

62.14
10.65
43.09

58.04
35.96
41.36

48.32
20.10
55.90

46.82
18.52
46.91

82.10
20.07
35.92

68.90
12.70
43.44

52.11
23.73
50.85

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

3
47
50

0
1
0

0
0
0

0
9
0

1
34
45

0
0
3

0
0
0

2
0
0

0
1
2

0
2
0

PRIOR Third quarterS
(The way it was...)
Return on assets (%)������������������������������� 2008
������������������������������������� 2006
������������������������������������� 2004

0.03
1.31
1.33

0.36
4.09
4.10

0.49
0.92
0.86

1.01
1.30
1.33

-0.13
1.32
1.34

-1.34
1.06
1.15

0.94
1.60
1.16

0.12
2.12
1.53

0.61
1.07
1.18

0.27
1.35
1.34

Net charge-offs to loans & leases (%)���� 2008
������������������������������������� 2006
������������������������������������� 2004

1.43
0.40
0.51

6.24
3.86
4.24

1.44
0.64
0.89

0.43
0.15
0.20

1.23
0.19
0.28

1.02
0.18
0.10

2.04
1.21
1.10

0.43
0.12
0.27

0.38
0.17
0.26

1.11
0.23
0.26

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

FDIC Quarterly

6

2009, Volume 3, No. 4

Quarterly Banking Profile
TABLE III-A. Third Quarter 2009, All FDIC-Insured Institutions
Asset Size Distribution
Third Quarter
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������������
8,099
Commercial banks�������������������������������������������
6,911
Savings institutions�����������������������������������������
1,188
Total assets (in billions)������������������������������������������
$13,247.3
Commercial banks�������������������������������������������
11,866.4
Savings institutions�����������������������������������������
1,380.9
Total deposits (in billions)���������������������������������������
9,100.9
Commercial banks�������������������������������������������
8,178.2
Savings institutions�����������������������������������������
922.7
Net income (in millions)������������������������������������������
2,833
Commercial banks�������������������������������������������
1,457
Savings institutions�����������������������������������������
1,377

Geographic Regions*

Less than
$100
$1 Billion
Greater
$100
Million to
to
than
Million
$1 Billion $10 Billion $10 Billion New York
2,912
4,496
579
112
989
2,588
3,798
440
85
519
324
698
139
27
470
$160.3
$1,346.1
$1,497.9 $10,243.0
$2,501.5
142.9
1,104.2
1,158.9
9,460.3
1,785.7
17.3
241.9
339.0
782.7
715.8
132.4
1,090.3
1,116.7
6,761.5
1,642.9
119.0
904.3
863.5
6,291.4
1,144.4
13.4
186.0
253.2
470.1
498.5
72
-131
-1,761
4,654
354
30
13
-1,508
2,921
-1,214
42
-145
-253
1,733
1,568

Atlanta
1,140
1,005
135
$3,450.5
3,317.6
132.8
2,467.4
2,368.7
98.7
-1,130
-921
-209

Chicago
1,666
1,371
295
$3,106.1
2,963.1
143.0
2,039.1
1,934.3
104.8
1,905
2,645
-740

Kansas
City
1,895
1,795
100
$1,077.8
1,028.7
49.1
825.4
788.7
36.7
2,318
2,372
-54

San
Dallas
Francisco
1,672
737
1,551
670
121
67
$755.6
$2,355.9
646.1
2,125.2
109.5
230.7
572.3
1,553.8
501.9
1,440.2
70.4
113.6
1,029
-1,643
949
-2,374
81
731

Performance Ratios (annualized, %)
Yield on earning assets������������������������������������������
Cost of funding earning assets������������������������������
Net interest margin������������������������������������������
Noninterest income to assets���������������������������������
Noninterest expense to assets�������������������������������
Loan and lease loss provision to assets����������������
Net operating income to assets�����������������������������
Pretax return on assets������������������������������������������
Return on assets�����������������������������������������������������
Return on equity�����������������������������������������������������
Net charge-offs to loans and leases����������������������
Loan and lease loss provision to net charge-offs�
Efficiency ratio��������������������������������������������������������
% of unprofitable institutions����������������������������������
% of institutions with earnings gains����������������������

4.73
1.22
3.51
1.88
2.79
1.89
0.16
0.09
0.09
0.80
2.71
123.10
54.63
26.55
43.25

5.61
1.70
3.91
1.31
3.82
0.69
0.16
0.39
0.18
1.45
0.83
132.49
77.72
25.65
43.58

5.51
1.83
3.67
0.98
3.22
1.13
-0.04
0.01
-0.04
-0.39
1.23
133.21
72.54
25.69
43.46

5.17
1.71
3.46
1.59
3.01
1.98
-0.40
-0.38
-0.47
-4.41
2.13
137.42
60.04
35.06
41.45

4.53
1.05
3.48
2.05
2.69
1.99
0.26
0.16
0.18
1.68
3.10
120.57
51.50
40.18
35.71

5.14
1.41
3.73
1.80
2.61
1.74
0.61
-0.23
0.06
0.45
3.07
105.73
50.09
22.95
54.70

4.49
1.16
3.32
1.65
2.59
2.18
-0.23
-0.23
-0.13
-1.14
2.69
135.92
55.43
48.77
34.56

4.12
1.09
3.03
2.18
2.79
1.63
0.22
0.40
0.24
2.83
2.58
124.14
56.42
24.25
40.88

5.55
1.06
4.49
3.01
3.95
1.88
0.77
1.30
0.87
8.01
2.52
111.77
55.49
17.99
42.80

5.11
1.35
3.75
1.63
3.19
1.21
0.46
0.71
0.54
5.31
1.40
132.09
62.58
15.91
47.19

4.95
1.31
3.63
1.47
2.62
2.18
-0.21
-0.27
-0.28
-2.64
3.13
125.28
52.82
48.30
38.94

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

3
47
50

2
24
11

1
16
29

0
4
8

0
3
2

2
6
4

0
9
15

0
8
13

0
14
5

1
4
3

0
6
10

PRIOR Third quarters
(The way it was…)
Return on assets (%)������������������������������������� 2008
������������������������������������������� 2006
������������������������������������������� 2004

0.03
1.31
1.33

0.27
1.02
1.08

-0.02
1.23
1.22

-0.60
1.27
1.47

0.12
1.33
1.33

0.01
1.12
1.13

0.22
1.37
1.46

0.10
1.01
1.21

0.50
1.79
1.49

0.18
1.22
1.46

-0.59
1.82
1.67

Net charge-offs to loans & leases (%)���������� 2008
������������������������������������������� 2006
������������������������������������������� 2004

1.43
0.40
0.51

0.44
0.16
0.25

0.71
0.14
0.22

1.10
0.20
0.34

1.63
0.49
0.60

1.49
0.63
0.73

1.28
0.18
0.26

1.36
0.27
0.43

1.61
0.46
0.61

0.85
0.23
0.30

1.80
0.62
0.54

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

FDIC Quarterly

7

2009, Volume 3, No. 4

TABLE IV-A. First Three Quarters 2009, All FDIC-Insured Institutions
Asset Concentration Groups*
First Three Quarters
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������������������������
8,099
Commercial banks�������������������������������������������������������
6,911
Savings institutions�����������������������������������������������������
1,188
Total assets (in billions)������������������������������������������������������
$13,247.3
Commercial banks�������������������������������������������������������
11,866.4
Savings institutions�����������������������������������������������������
1,380.9
Total deposits (in billions)���������������������������������������������������
9,100.9
Commercial banks�������������������������������������������������������
8,178.2
Savings institutions�����������������������������������������������������
922.7
Net income (in millions)������������������������������������������������������
9,590
Commercial banks�������������������������������������������������������
8,064
Savings institutions�����������������������������������������������������
1,526
Performance Ratios (annualized, %)
Yield on earning assets������������������������������������������������������
Cost of funding earning assets������������������������������������������
Net interest margin������������������������������������������������������
Noninterest income to assets���������������������������������������������
Noninterest expense to assets�������������������������������������������
Loan and lease loss provision to assets����������������������������
Net operating income to assets�����������������������������������������
Pretax return on assets������������������������������������������������������
Return on assets�����������������������������������������������������������������
Return on equity�����������������������������������������������������������������
Net charge-offs to loans and leases����������������������������������
Loan and lease loss provision to net charge-offs�������������
Efficiency ratio��������������������������������������������������������������������
% of unprofitable institutions����������������������������������������������
% of institutions with earnings gains����������������������������������

Credit
Other
Card International Agricultural Commercial Mortgage Consumer Specialized All Other All Other
Banks
Banks
Banks
Lenders
Lenders
Lenders
<$1 Billion <$1 Billion >$1 Billion
24
4
1,578
4,541
796
81
284
732
59
20
4
1,572
4,059
212
64
256
679
45
4
0
6
482
584
17
28
53
14
$500.5
$3,183.4
$177.5
$5,184.8
$852.3
$95.8
$37.8
$102.7
$3,112.5
478.8
3,183.4
176.7
4,693.0
178.2
52.4
33.8
89.3
2,980.8
21.7
0.0
0.7
491.8
674.1
43.4
4.1
13.4
131.7
266.8
1,978.9
142.8
3,852.7
509.7
78.8
28.1
84.3
2,158.9
255.4
1,978.9
142.2
3,515.3
66.0
40.9
25.5
73.8
2,080.2
11.3
0.0
0.6
337.4
443.7
37.9
2.7
10.5
78.7
-2,122
100
1,198
-7,918
3,003
145
181
602
14,401
-2,789
100
1,195
-7,204
2,194
113
37
618
13,800
667
0
3
-714
808
33
144
-16
601

4.80
1.34
3.46
1.97
2.86
1.87
0.14
0.14
0.10
0.93
2.38
138.79
54.96
28.31
37.54

11.61
1.39
10.23
5.39
5.77
8.94
-0.68
-0.93
-0.58
-2.45
9.93
125.23
39.16
37.50
25.00

3.93
0.99
2.94
2.00
2.61
1.55
0.27
-0.06
0.00
0.05
2.90
142.61
57.91
75.00
0.00

5.70
1.79
3.92
0.66
2.74
0.48
0.89
1.07
0.91
8.20
0.51
141.22
63.49
10.46
39.48

5.03
1.56
3.48
1.49
3.05
1.71
-0.21
-0.21
-0.20
-1.92
1.77
139.38
61.09
39.11
32.92

5.10
1.88
3.22
0.79
1.83
1.12
0.45
0.84
0.47
5.35
1.26
134.84
47.79
21.23
57.29

5.81
1.68
4.13
2.14
2.81
2.76
0.21
0.46
0.22
2.13
2.64
132.47
46.12
18.52
41.98

3.99
1.19
2.79
7.95
8.96
0.18
0.73
1.15
0.64
3.70
0.80
88.56
81.97
16.55
35.21

5.48
1.71
3.77
0.85
2.99
0.35
0.79
0.97
0.80
6.88
0.46
134.52
69.08
12.70
41.39

4.06
1.09
2.97
2.55
2.57
1.70
0.55
0.80
0.59
5.78
2.31
148.18
50.21
27.12
38.98

86.11

80.92

84.29

91.90

88.02

93.25

93.47

88.55

91.83

82.89

2.97
60.08

9.23
299.84

4.11
59.07

1.43
75.41

2.36
51.27

1.46
34.40

2.97
190.18

1.43
89.10

1.33
73.39

2.88
53.13

3.07
10.90
8.54
11.49
14.17
79.05
54.31
57.02

2.09
25.25
19.03
13.60
15.64
115.67
61.65
45.10

2.63
8.45
6.92
11.40
14.66
54.91
34.13
29.72

1.59
11.32
10.09
13.65
14.76
81.37
65.47
80.46

3.70
10.98
8.63
10.58
13.07
90.61
67.33
71.68

3.10
9.31
8.60
17.08
18.02
105.76
63.25
59.72

1.29
10.87
10.38
13.72
15.53
93.69
77.07
80.87

0.60
17.57
15.82
35.00
35.75
32.50
24.17
73.97

1.35
11.85
11.05
18.12
19.30
67.82
55.62
82.00

2.85
11.26
8.11
11.00
14.23
70.10
48.62
58.58

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

28
136
95

0
1
0

0
0
0

1
15
3

6
109
83

1
2
5

0
0
0

17
1
0

1
5
4

2
3
0

PRIOR First Three Quarters
(The way it was…)
Number of institutions������������������������������������������������2008
��������������������������������������������������������2006
��������������������������������������������������������2004

8,384
8,743
9,024

26
29
35

4
4
6

1,588
1,691
1,783

4,810
4,710
4,385

827
845
1,000

100
125
136

298
398
458

691
886
1,138

40
55
83

Total assets (in billions)����������������������������������������������2008
��������������������������������������������������������2006
��������������������������������������������������������2004

$13,573.0
11,754.2
9,877.2

$467.9
382.0
367.9

$3,263.3
2,128.5
1,565.9

$168.1
151.5
137.7

$6,077.9
4,673.1
3,195.3

$1,060.5
1,790.4
1,405.2

$71.0
107.1
211.7

$36.0
42.3
54.1

$93.8
117.4
147.6

$2,334.5
2,361.8
2,791.9

Return on assets (%)��������������������������������������������������2008
��������������������������������������������������������2006
��������������������������������������������������������2004

0.32
1.33
1.29

2.42
4.42
3.90

0.31
1.03
0.89

1.12
1.29
1.28

0.23
1.32
1.33

-0.35
1.07
1.20

1.01
1.69
0.82

1.56
1.33
1.47

0.88
1.07
1.14

0.36
1.31
1.23

Net charge-offs to loans & leases (%)�����������������������2008
��������������������������������������������������������2006
��������������������������������������������������������2004

1.18
0.36
0.55

5.64
3.38
4.69

1.28
0.59
1.05

0.29
0.14
0.17

0.98
0.18
0.29

0.74
0.14
0.11

1.84
1.00
0.94

0.43
0.53
0.46

0.30
0.17
0.26

0.88
0.20
0.25

Noncurrent plus OREO to assets (%)������������������������2008
��������������������������������������������������������2006
��������������������������������������������������������2004

1.55
0.50
0.57

1.73
1.35
1.30

1.17
0.40
0.69

1.15
0.67
0.77

1.92
0.52
0.55

2.30
0.52
0.59

0.80
0.65
0.63

0.28
0.20
0.30

0.92
0.52
0.63

0.85
0.37
0.40

Equity capital ratio (%)�����������������������������������������������2008
��������������������������������������������������������2006
��������������������������������������������������������2004

9.62
10.41
10.13

20.85
27.18
20.78

7.13
7.82
7.27

11.07
10.94
10.87

10.66
10.39
10.40

7.95
10.54
8.74

9.14
9.76
13.62

19.61
22.46
16.95

11.25
11.11
10.93

8.61
9.73
10.25

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

* Asset Concentration Group Definitions (Groups are hierarchical and mutually exclusive):
Credit-card Banks - 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

2009, Volume 3, No. 4

Quarterly Banking Profile
TABLE IV-A. First Three Quarters 2009, All FDIC-Insured Institutions
Asset Size Distribution
First Three Quarters
All Insured Less than
(The way it is...)
Institutions $100 Million
Number of institutions reporting���������������������
8,099
2,912
Commercial banks�����������������������������������
6,911
2,588
Savings institutions���������������������������������
1,188
324
Total assets (in billions)����������������������������������
$13,247.3
$160.3
Commercial banks�����������������������������������
11,866.4
142.9
Savings institutions���������������������������������
1,380.9
17.3
Total deposits (in billions)�������������������������������
9,100.9
132.4
Commercial banks�����������������������������������
8,178.2
119.0
Savings institutions���������������������������������
922.7
13.4
Net income (in millions)����������������������������������
9,590
255
Commercial banks�����������������������������������
8,064
166
Savings institutions���������������������������������
1,526
89
Performance Ratios (annualized, %)
Yield on earning assets����������������������������������
Cost of funding earning assets����������������������
Net interest margin����������������������������������
Noninterest income to assets�������������������������
Noninterest expense to assets�����������������������
Loan and lease loss provision to assets��������
Net operating income to assets���������������������
Pretax return on assets����������������������������������
Return on assets���������������������������������������������
Return on equity���������������������������������������������
Net charge-offs to loans and leases��������������
Loan and lease loss provision to net
charge-offs����������������������������������������������
Efficiency ratio������������������������������������������������
% of unprofitable institutions��������������������������
% of institutions with earnings gains��������������

Geographic Regions*

$100 Million $1 Billion
Greater
to
to
than
$1 Billion
$10 Billion $10 Billion New York
4,496
579
112
989
3,798
440
85
519
698
139
27
470
$1,346.1
$1,497.9
$10,243.0
$2,501.5
1,104.2
1,158.9
9,460.3
1,785.7
241.9
339.0
782.7
715.8
1,090.3
1,116.7
6,761.5
1,642.9
904.3
863.5
6,291.4
1,144.4
186.0
253.2
470.1
498.5
781
-3,863
12,418
-2,631
945
-3,145
10,098
-3,862
-165
-718
2,320
1,231

Atlanta
Chicago
1,140
1,666
1,005
1,371
135
295
$3,450.5
$3,106.1
3,317.6
2,963.1
132.8
143.0
2,467.4
2,039.1
2,368.7
1,934.3
98.7
104.8
2,629
5,313
3,303
6,443
-674
-1,129

Kansas
City
1,895
1,795
100
$1,077.8
1,028.7
49.1
825.4
788.7
36.7
5,889
5,914
-25

San
Dallas
Francisco
1,672
737
1,551
670
121
67
$755.6
$2,355.9
646.1
2,125.2
109.5
230.7
572.3
1,553.8
501.9
1,440.2
70.4
113.6
2,166
-3,777
1,718
-5,451
447
1,674

4.80
1.34
3.46
1.97
2.86
1.87
0.14
0.14
0.10
0.93
2.38

5.65
1.81
3.84
1.30
3.85
0.61
0.20
0.36
0.22
1.72
0.76

5.57
1.97
3.61
0.98
3.22
0.96
0.06
0.13
0.08
0.78
1.00

5.25
1.84
3.42
1.41
3.10
1.70
-0.34
-0.31
-0.35
-3.26
1.82

4.61
1.17
3.44
2.19
2.77
2.03
0.21
0.21
0.16
1.55
2.74

5.21
1.52
3.69
1.87
2.76
1.93
0.27
-0.20
-0.14
-1.14
2.73

4.45
1.29
3.16
1.92
2.62
1.90
0.01
0.15
0.10
0.92
2.18

4.24
1.19
3.05
2.20
2.94
1.59
0.17
0.36
0.22
2.65
2.15

5.60
1.14
4.46
3.13
3.96
1.92
0.76
1.13
0.74
7.19
2.40

5.13
1.48
3.65
1.54
3.33
1.08
0.32
0.51
0.38
3.78
1.18

5.17
1.47
3.70
1.47
2.57
2.41
-0.19
-0.35
-0.22
-2.14
3.09

138.79

128.49

138.48

136.93

139.09

132.12

148.11

144.30

120.08

138.96

137.32

54.96
28.31
37.54

78.89
26.10
40.01

73.63
28.43
37.08

63.78
36.27
30.74

51.52
40.18
26.79

52.38
27.30
49.75

54.12
53.07
25.96

57.16
23.77
38.18

54.81
18.26
36.68

64.68
17.11
42.28

52.91
52.92
29.04

86.11

91.51

91.78

90.64

84.62

85.53

83.23

86.98

88.28

90.38

87.42

2.97
60.08

1.53
62.97

1.65
48.10

2.14
49.58

3.38
62.95

3.08
90.71

2.82
52.85

3.13
54.83

2.66
58.36

1.88
57.53

3.49
59.94

3.07
10.90
8.54
11.49
14.17
79.05
54.31
57.02

2.12
12.44
11.91
17.67
18.75
75.20
62.13
82.61

3.14
10.13
9.52
13.11
14.31
83.68
67.78
80.95

3.50
10.77
9.27
12.52
13.87
88.03
65.63
73.99

3.02
11.00
8.25
11.04
14.13
76.90
50.76
50.99

1.89
12.98
9.80
12.85
14.97
77.47
50.88
56.80

3.51
11.59
7.93
10.35
13.68
80.60
57.64
63.01

3.18
8.69
7.17
9.87
13.13
74.09
48.64
51.65

3.45
10.85
9.12
10.41
12.75
84.51
64.72
71.28

2.66
10.43
9.34
12.44
14.19
84.61
64.09
74.94

3.50
10.78
9.43
14.53
16.46
79.83
52.65
43.26

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

28
136
95

24
58
15

1
62
64

1
11
13

2
5
3

3
24
6

10
21
29

5
27
20

0
34
10

6
21
5

4
9
25

PRIOR First Three Quarters
(The way it was…)
Number of institutions��������������������������� 2008
����������������������������������� 2006
����������������������������������� 2004

8,384
8,743
9,024

3,240
3,731
4,204

4,470
4,369
4,223

560
523
480

114
120
117

1,027
1,097
1,136

1,197
1,232
1,223

1,721
1,848
1,968

1,943
2,027
2,104

1,719
1,767
1,840

777
772
753

Total assets (in billions)������������������������� 2008
����������������������������������� 2006
����������������������������������� 2004

$13,573.0
11,754.2
9,877.2

$174.9
194.2
217.7

$1,338.2
1,283.5
1,177.3

$1,474.7
1,422.5
1,326.4

$10,585.2
8,854.0
7,155.9

$2,689.5
2,963.5
3,403.0

$3,427.5
2,928.6
2,104.7

$3,324.7
2,736.1
1,745.7

$1,009.2
814.5
763.1

$770.8
644.3
588.8

$2,351.4
1,667.3
1,271.9

Return on assets (%)����������������������������� 2008
����������������������������������� 2006
����������������������������������� 2004

0.32
1.33
1.29

0.47
1.01
1.02

0.44
1.20
1.19

0.18
1.30
1.48

0.33
1.36
1.28

0.59
1.24
1.14

0.30
1.34
1.40

0.31
1.07
1.13

0.93
1.68
1.51

0.56
1.27
1.35

-0.22
1.77
1.61

Net charge-offs to loans & leases (%)�� 2008
����������������������������������� 2006
����������������������������������� 2004

1.18
0.36
0.55

0.31
0.14
0.22

0.49
0.14
0.23

0.88
0.19
0.35

1.37
0.43
0.66

1.31
0.56
0.81

0.98
0.16
0.31

1.15
0.24
0.36

1.36
0.39
0.75

0.65
0.20
0.26

1.49
0.56
0.60

Noncurrent plus OREO to assets (%)��� 2008
����������������������������������� 2006
����������������������������������� 2004

1.55
0.50
0.57

1.40
0.72
0.82

1.82
0.57
0.61

2.03
0.46
0.53

1.46
0.49
0.56

0.98
0.44
0.56

1.67
0.31
0.39

1.56
0.54
0.68

1.90
0.89
0.61

1.63
0.62
0.65

1.85
0.63
0.66

Equity capital ratio (%)�������������������������� 2008
����������������������������������� 2006
����������������������������������� 2004

9.62
10.41
10.13

13.14
13.04
11.94

10.18
10.46
10.20

10.87
11.00
10.83

9.32
10.25
9.94

10.92
11.13
10.16

10.14
9.76
8.45

8.56
9.03
10.47

9.66
11.18
10.52

9.87
10.36
10.17

8.79
12.20
12.14

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

2009, Volume 3, No. 4

TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Concentration Groups*
September 30, 2009

All Insured
Institutions

Credit
Card
Banks

International Agricultural Commercial Mortgage
Banks
Banks
Lenders
Lenders

Consumer
Lenders

Other
All Other All Other
Specialized
<$1
>$1
<$1 Billion
Billion
Billion

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

2.23
2.88
1.21
1.13
1.35
3.15
0.95
2.57
3.08
2.26
0.52
1.92

1.70
4.66
0.00
0.00
1.84
1.72
4.67
3.29
3.18
4.09
0.01
3.05

3.46
3.60
0.79
0.62
1.93
5.25
0.43
2.27
3.46
1.83
0.38
2.24

1.14
2.14
1.10
0.94
0.60
1.74
1.48
2.11
3.99
2.02
0.74
1.15

1.95
2.97
1.28
1.44
0.90
2.71
1.08
2.10
2.33
2.06
0.68
1.73

2.26
4.23
1.27
1.14
1.50
2.37
1.11
1.90
3.30
1.47
0.43
2.22

1.35
3.39
1.81
0.45
1.05
1.55
1.39
2.06
1.39
2.27
0.35
1.80

1.74
1.82
1.37
2.18
0.58
2.18
1.19
1.47
2.72
1.43
0.87
1.57

1.86
2.59
1.34
1.04
0.94
2.16
1.72
2.33
1.95
2.35
0.68
1.81

2.30
2.09
0.90
0.27
1.51
3.38
0.63
2.73
3.20
2.60
0.55
1.87

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

6.41
15.00
3.40
3.58
1.76
8.06
3.56
2.08
3.29
1.34
1.64
4.94

2.72
1.04
0.00
0.00
3.65
3.38
4.43
3.35
3.25
4.02
0.01
3.08

9.52
13.83
3.26
3.38
1.94
15.27
6.95
2.67
4.20
2.10
2.88
6.95

2.32
10.27
2.63
2.62
0.79
1.64
2.40
0.97
4.94
0.78
0.76
1.89

5.75
15.34
3.28
3.95
1.15
5.69
2.81
1.26
2.97
0.98
1.31
4.61

4.43
13.21
3.39
2.84
1.86
4.53
2.01
1.42
3.73
0.72
0.63
4.25

1.80
7.37
2.05
1.12
0.76
2.67
0.85
1.55
1.48
1.57
0.10
1.55

2.00
3.73
1.62
1.82
0.60
2.19
1.76
0.48
0.81
0.47
0.44
1.60

2.06
6.38
2.27
1.91
0.75
1.66
1.95
0.83
1.45
0.81
0.75
1.81

8.03
14.35
4.41
2.32
2.43
11.57
2.90
1.28
3.20
0.78
1.38
5.43

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

1.87
4.79
0.62
0.92
2.82
1.64
2.28
5.41
9.17
3.01
1.18
2.38

1.93
0.00
0.00
0.00
0.00
2.88
15.42
10.31
9.63
15.09
0.00
9.93

2.88
2.25
1.26
0.68
3.17
3.60
2.48
4.74
8.12
3.33
1.47
2.90

0.38
2.25
0.40
0.23
0.38
0.27
1.17
1.02
9.18
0.57
0.00
0.51

1.65
4.91
0.64
1.10
1.47
1.16
1.97
2.63
7.96
1.80
1.38
1.77

1.16
5.33
0.72
0.79
3.45
0.89
1.45
3.65
10.22
1.56
0.81
1.26

1.59
2.90
0.76
0.00
2.04
1.05
4.99
2.87
5.33
2.14
1.43
2.62

0.48
1.31
0.19
0.01
0.11
0.61
0.85
1.85
11.57
0.49
0.96
0.80

0.32
1.12
0.30
0.25
0.49
0.24
0.86
0.94
4.20
0.85
0.52
0.46

2.41
4.83
0.41
0.44
4.15
1.94
1.62
3.82
9.52
2.35
0.96
2.31

Loans Outstanding (in billions)
All real estate loans����������������������������������������������������������
Construction and development���������������������������������
Nonfarm nonresidential���������������������������������������������
Multifamily residential real estate�����������������������������
Home equity loans����������������������������������������������������
Other 1-4 family residential���������������������������������������
Commercial and industrial loans�������������������������������������
Loans to individuals����������������������������������������������������������
Credit card loans�������������������������������������������������������
Other loans to individuals�����������������������������������������
All other loans and leases (including farm)���������������������
Total loans and leases (plus unearned income)��������������

$4,526.7
492.2
1,089.9
216.5
667.5
1,928.5
1,275.6
1,040.2
393.0
647.2
575.0
7,417.6

$0.2
0.0
0.0
0.0
0.0
0.1
29.5
273.5
240.4
33.1
36.8
340.0

$566.1
10.9
32.2
40.1
139.6
293.2
220.9
187.8
51.0
136.9
159.3
1,134.1

$68.4
4.8
19.5
1.4
1.4
18.2
15.5
6.7
0.3
6.4
27.3
117.9

$2,433.0
391.6
858.7
137.8
263.3
736.7
671.9
267.4
37.4
230.0
203.9
3,576.2

$512.3
11.0
26.5
12.2
33.6
428.3
9.7
22.3
5.2
17.1
2.8
547.1

$19.9
0.6
0.9
0.1
10.3
8.0
4.8
50.7
12.2
38.4
1.2
76.7

$5.8
0.5
1.8
0.2
0.3
2.8
1.2
1.7
0.1
1.6
0.6
9.3

$41.2
2.8
10.1
0.8
1.6
23.0
5.7
6.8
0.2
6.6
4.3
57.9

$879.7
70.0
140.1
24.0
217.4
418.3
316.5
223.3
46.2
177.1
138.9
1,558.4

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��������������������������������������������������������������������
GNMA properties������������������������������������������������������

37,164.6
14,866.2
5,838.2
1,441.8
12,428.8
225.7
2,323.5

-30.5
0.0
0.2
0.0
0.4
0.0
0.0

2,500.0
27.0
138.0
52.0
1,502.0
0.0
628.0

582.6
210.5
168.9
23.3
133.8
45.5
0.6

26,498.4
13,095.0
4,859.1
1,120.7
6,664.3
167.4
580.5

3,119.6
915.5
128.8
37.6
1,854.5
1.9
274.4

47.4
20.2
3.1
5.1
17.7
1.2
0.0

65.4
23.1
18.2
0.9
21.9
1.3
0.0

328.3
84.8
90.7
22.3
123.1
7.3
0.0

4,053.4
490.1
431.1
180.0
2,111.2
1.0
840.1

* 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

2009, Volume 3, No. 4

Quarterly Banking Profile
TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Size Distribution
September 30, 2009

Geographic Regions*

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

Atlanta

Chicago

Kansas
City

Dallas

San
Francisco

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

2.23
2.88
1.21
1.13
1.35
3.15
0.95
2.57
3.08
2.26
0.52
1.92

1.79
2.55
1.45
1.34
0.99
2.24
1.81
2.48
3.56
2.47
0.59
1.71

1.65
2.75
1.33
1.29
0.86
1.79
1.42
2.10
3.15
2.02
0.64
1.60

1.47
2.44
1.04
1.46
0.81
1.64
1.24
2.16
2.01
2.22
0.80
1.47

2.56
3.16
1.23
0.98
1.43
3.63
0.83
2.64
3.15
2.28
0.49
2.07

1.50
2.57
1.11
0.94
0.66
1.74
1.36
3.22
3.41
2.90
0.45
1.75

2.65
2.95
1.45
1.31
1.49
3.81
0.82
2.57
3.02
2.44
0.29
2.15

2.41
3.58
1.33
1.23
1.51
3.45
0.84
2.12
2.94
1.90
0.86
1.95

1.45
2.42
0.99
0.67
1.32
1.82
1.35
3.14
3.19
3.10
0.60
1.53

1.83
2.11
1.10
1.72
0.85
2.85
0.93
1.66
1.19
1.82
0.64
1.59

2.65
3.17
0.99
1.08
1.34
3.92
0.75
2.13
2.73
1.78
0.39
2.05

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

6.41
15.00
3.40
3.58
1.76
8.06
3.56
2.08
3.29
1.34
1.64
4.94

2.79
8.93
2.79
2.30
1.12
2.05
2.64
1.12
2.48
1.10
0.74
2.42

3.89
11.87
2.64
3.26
1.15
2.57
2.30
0.94
2.76
0.80
0.96
3.42

5.24
15.29
3.03
3.81
1.13
3.80
2.36
1.31
1.68
1.16
1.19
4.32

7.38
16.34
4.00
3.60
1.86
9.79
3.91
2.22
3.41
1.41
1.76
5.37

3.77
14.10
3.26
2.32
0.74
3.21
3.33
2.93
3.53
1.90
1.26
3.40

7.22
14.60
3.99
5.21
2.28
8.96
2.96
1.36
2.76
0.95
0.95
5.34

7.60
17.48
3.92
3.93
1.71
11.19
3.58
1.44
3.11
1.00
2.40
5.71

6.86
13.96
2.81
2.07
2.11
12.35
2.39
2.12
2.96
1.40
0.61
4.55

4.17
8.48
1.95
3.58
0.60
5.11
1.65
0.74
1.19
0.59
1.13
3.26

7.09
21.74
3.35
3.64
1.25
8.10
6.11
2.62
3.69
1.97
3.17
5.82

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

1.87
4.79
0.62
0.92
2.82
1.64
2.28
5.41
9.17
3.01
1.18
2.38

0.63
2.93
0.45
0.49
0.82
0.35
1.43
1.27
11.19
0.92
0.00
0.76

0.88
3.04
0.39
0.53
0.71
0.55
1.48
1.75
9.39
1.18
0.70
1.00

1.66
5.68
0.63
1.07
1.02
0.83
2.07
3.14
6.64
1.82
1.03
1.82

2.17
5.16
0.74
0.96
3.12
1.97
2.40
5.81
9.31
3.31
1.25
2.74

0.81
3.08
0.51
0.48
0.87
0.65
3.34
8.57
10.03
5.96
0.73
2.73

2.26
4.68
0.51
1.28
3.80
1.85
1.57
3.53
8.75
2.01
0.94
2.17

2.05
5.36
0.98
1.10
2.02
2.04
1.95
3.37
8.68
1.82
1.69
2.15

1.70
3.78
0.51
0.42
3.64
1.10
2.52
6.68
10.45
3.52
0.51
2.40

1.11
3.00
0.39
1.18
1.31
0.60
1.22
1.83
4.40
1.13
1.00
1.18

2.51
8.65
0.75
0.98
3.49
2.43
3.37
5.27
7.74
3.68
1.80
3.09

Loans Outstanding (in billions)
All real estate loans�������������������������������������������������
Construction and development������������������������
Nonfarm nonresidential������������������������������������
Multifamily residential real estate��������������������
Home equity loans�������������������������������������������
Other 1-4 family residential������������������������������
Commercial and industrial loans����������������������������
Loans to individuals�������������������������������������������������
Credit card loans����������������������������������������������
Other loans to individuals��������������������������������
All other loans and leases (including farm)������������
Total loans and leases (plus unearned income)�����

$4,526.7
492.2
1,089.9
216.5
667.5
1,928.5
1,275.6
1,040.2
393.0
647.2
575.0
7,417.6

$69.3
6.7
20.7
1.9
2.4
28.8
13.3
7.3
0.1
7.2
11.2
101.1

$725.5
108.0
268.9
32.0
39.6
244.4
118.6
44.5
3.1
41.4
39.6
928.1

$730.2
123.2
272.4
45.9
50.7
225.2
149.6
86.5
24.8
61.7
39.1
1,005.5

$3,001.6
254.3
527.9
136.7
574.8
1,430.1
994.2
901.9
364.9
536.9
485.1
5,382.8

$806.5
60.9
207.0
56.3
74.0
403.2
170.6
257.1
162.6
94.4
79.6
1,313.7

$1,303.2
173.8
291.9
40.1
227.7
550.6
357.6
241.7
54.5
187.2
144.2
2,046.8

$957.7
88.6
205.4
62.0
198.9
385.3
295.4
179.6
37.7
141.8
127.0
1,559.8

$393.3
43.6
110.2
12.2
79.1
126.5
128.7
92.0
42.3
49.7
102.7
716.7

$335.7
67.6
121.4
8.9
24.1
101.8
94.0
41.8
10.5
31.3
22.1
493.7

$730.2
57.9
154.1
37.0
63.6
361.1
229.3
228.0
85.3
142.7
99.5
1,287.0

Memo: Other Real Estate Owned (in millions)
All other real estate owned��������������������������������������
Construction and development������������������������
Nonfarm nonresidential������������������������������������
Multifamily residential real estate��������������������
1-4 family residential����������������������������������������
Farmland�����������������������������������������������������������
GNMA properties���������������������������������������������

37,164.6
14,866.2
5,838.2
1,441.8
12,428.8
225.7
2,323.5

949.4
328.1
259.4
26.2
315.0
20.3
0.5

10,394.3
5,305.7
2,137.2
335.7
2,481.6
127.6
8.5

8,746.1
4,689.3
1,612.0
448.9
1,837.9
61.1
97.5

17,074.8
4,543.0
1,829.7
631.0
7,794.3
16.7
2,217.1

2,485.0
662.6
571.3
144.9
1,061.2
10.1
23.4

11,594.5
5,036.3
1,658.0
495.4
4,202.6
35.8
166.6

9,161.3
2,650.3
1,238.1
328.6
3,770.8
37.0
1,224.2

4,503.8
1,739.6
806.5
108.9
971.3
35.0
842.7

3,927.0
1,889.4
856.5
142.7
936.4
87.9
14.2

5,493.0
2,888.0
707.8
221.3
1,486.7
19.9
52.5

* 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

2009, Volume 3, No. 4

TABLE VI-A. Derivatives, All FDIC-Insured Commercial Banks and State-Chartered Savings Banks
Asset Size Distribution
(dollar figures in millions;
3rd Quarter 2nd Quarter 1st Quarter
notional amounts unless otherwise indicated)
2009
2009
2009
ALL DERIVATIVE HOLDERS
Number of institutions reporting derivatives�����������������
1,171
1,214
1,170
Total assets of institutions reporting derivatives���������� $10,545,662 $10,594,628 $10,672,649
Total deposits of institutions reporting derivatives�������
7,182,788
7,097,202
6,983,343
Total derivatives������������������������������������������������������������� 206,393,244 204,956,766 203,388,099

% Change
Less
$100
4th Quarter 3rd Quarter
08Q3than $100 Million to
2008
2008
09Q3
Million
$1 Billion
1,102
1,070
$10,975,123 $10,723,563
7,091,683
6,801,835
212,114,644 177,121,812

$1 Billion
to $10
Greater than
Billion
$10 Billion

9.4
-1.7
5.6
16.5

94
$6,641
5,487
284

693
$291,061
232,986
20,444

304
80
$876,990
$9,370,970
656,565
6,287,751
59,854 206,312,662

137,207,613
19,729,753
2,786,005
1,250,074
16,148,367
177,121,812

25.8
-10.2
-21.7
-25.9
-19.6
16.5

273
0
11
0
0
284

19,813
27
172
300
132
20,444

56,366 172,500,798
2,321
17,719,138
916
2,180,925
191
925,805
60
12,985,997
59,854 206,312,662

Derivative Contracts by Transaction Type
Swaps���������������������������������������������������������������������������� 135,921,737 135,613,803 133,873,113 143,110,842 108,289,345
Futures & forwards�������������������������������������������������������� 24,879,311
24,706,143 23,587,682 22,528,731 24,492,578
Purchased options��������������������������������������������������������� 15,427,830 14,928,696
14,936,181 14,824,429 13,491,255
Written options��������������������������������������������������������������� 15,065,820
14,787,419 14,983,352 14,922,615 13,454,312
Total�������������������������������������������������������������������������������� 191,294,699 190,036,061 187,380,328 195,386,617 159,727,490

25.5
1.6
14.4
12.0
19.8

30
116
20
118
284

10,179
4,344
816
4,972
20,310

37,363
11,571
3,339
7,210
59,483

135,874,165
24,863,281
15,423,654
15,053,522
191,214,622

Derivative Contracts by Underlying Risk Exposure
Interest rate�������������������������������������������������������������������� 172,577,250 171,919,307 169,395,794 175,894,783
Foreign exchange*�������������������������������������������������������� 17,721,486 16,646,714 16,272,958 16,922,815
Equity�����������������������������������������������������������������������������
2,182,024
2,041,640
2,174,368
2,206,793
Commodity & other (excluding credit derivatives)��������
926,295
909,033
938,063
1,061,132
Credit������������������������������������������������������������������������������ 12,986,189 13,440,073 14,606,916
16,029,122
Total�������������������������������������������������������������������������������� 206,393,244 204,956,766 203,388,099 212,114,644

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�����������������������������������

123,736
-5,040
-241
3,615
-234,357
266,208

126,040
-10,568
679
1,156
-476,973
525,587

138,559
-10,459
3,114
4,158
-959,080
1,031,185

131,483
-16,942
2,871
3,848
-975,755
1,046,813

27,300
15,054
3,742
3,173
-566,035
603,936

353.2
N/M
N/M
13.9
N/M
-55.9

1
0
0
0
0
0

4
0
3
8
0
-1

60
2
17
2
2
-3

123,672
-5,041
-261
3,605
-234,360
266,211

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

74,555,166
33,977,568
26,620,709
9,674,124
2,405,751
1,325,262
358,462
301,995
82,835
237,860
233,829
43,612

72,457,913
35,921,531
28,356,868
9,490,043
2,293,453
1,193,852
343,418
291,182
75,716
252,705
211,329
45,443

68,442,052
37,293,223
29,984,848
9,234,331
2,163,751
1,056,793
348,777
286,171
82,843
279,748
206,173
41,546

58,618,112
47,456,432
36,868,247
10,561,395
2,168,136
1,079,943
409,029
256,252
72,337
264,916
261,768
45,031

40,400,427
37,760,963
28,785,015
12,664,219
1,787,926
676,596
508,748
332,908
81,967
294,036
288,860
88,832

84.5
-10.0
-7.5
-23.6
34.6
95.9
-29.5
-9.3
1.1
-19.1
-19.1
-50.9

77
13
18
0
0
0
2
2
0
0
0
0

3,732
7,380
3,328
20
3
0
31
82
0
12
113
13

15,963
16,488
15,541
1,522
8
0
83
421
4
146
12
0

74,535,393
33,953,687
26,601,823
9,672,582
2,405,741
1,325,262
358,346
301,491
82,830
237,702
233,703
43,598

57.3
83.6

66.7
80.6

86.2
89.2

107.4
103.2

60.3
122.3

0.1
0.1

0.6
0.4

1.6
0.5

65.0
95.0

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

140.9

147.3

175.3

210.6

182.6

0.2

1.0

2.1

160.0

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

603.0

383.0

217.0

1,072.0

227.0

165.6

0.0

7.0

2.0

593.0

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

208
8,917,601
6,018,321

204
8,913,300
5,990,013

200
9,017,972
5,887,336

181
9,413,833
6,085,115

187
9,236,235
5,856,346

11.2
-3.4
2.8

10
748
588

73
30,805
24,623

69
273,194
199,322

56
8,612,854
5,793,789

Derivative Contracts by Underlying Risk Exposure
Interest rate�������������������������������������������������������������������� 170,554,634 169,591,911 167,216,659 173,827,598
Foreign exchange���������������������������������������������������������� 15,516,932 15,058,290 14,766,077
16,147,796
Equity�����������������������������������������������������������������������������
2,175,796
2,034,228
2,162,149
2,195,068
Commodity & other��������������������������������������������������������
924,183
906,108
935,634
1,058,678
Total�������������������������������������������������������������������������������� 189,171,544 187,590,538 185,080,520 193,229,140

135,190,125
18,396,233
2,773,712
1,246,952
157,607,022

26.2
-15.7
-21.6
-25.9
20.0

37
0
0
0
37

833
0
1
9
843

17,352
1,611
255
111
19,329

170,536,412
15,515,320
2,175,539
924,063
189,151,335

N/M
N/M
-72.7
-43.2
-11.2

0
0
0
0
0

0
0
0
0
0

58
3
2
1
63

5,378
-1,537
151
1,648
5,640

0.0
0.0

0.1
5.9

1.7
-14.2

4.8
76.8

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

5,437
-1,535
153
1,648
5,704

1,080
2,132
-281
2,328
5,259

9,084
2,436
1,043
-2,366
10,197

-5,298
3,388
-1,061
-6,265
-9,237

-132
3,098
561
2,900
6,427

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

4.7
82.6

4.0
96.4

7.6
138.3

-8.2
44.0

4.6
67.0

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

1,043
10,193,321
6,950,206

1,086
10,218,107
6,847,509

1,047
10,304,668
6,729,875

998
10,464,333
6,820,742

970
10,396,554
6,589,371

7.5
-2.0
5.5

84
5,894
4,899

622
262,835
210,231

261
740,958
554,749

76
9,183,634
6,180,327

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

2,022,616
92,197
6,229
2,112
2,123,154

2,327,396
107,791
7,412
2,924
2,445,523

2,179,134
106,027
12,219
2,429
2,299,808

2,067,185
76,113
11,725
2,454
2,157,477

2,017,489
87,565
12,293
3,121
2,120,468

0.3
5.3
-49.3
-32.3
0.1

236
0
11
0
246

18,980
25
172
291
19,467

39,014
398
661
80
40,154

1,964,386
91,774
5,386
1,742
2,063,287

All line items are reported on a quarterly basis. 
N/M - Not Meaningful
* Include spot foreign exchange contracts. All other references to foreign exchange contracts in which notional values or fair values are reported exclude spot foreign exchange contracts.
** Derivative contracts subject to the risk-based capital requirements for derivatives.
*** The reporting of credit losses on derivatives is applicable to all banks filing the FFIEC 031 report form and to those banks filing the FFIEC 041 report form that have $300 million or more
in total assets.

FDIC Quarterly

12

2009, Volume 3, No. 4

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

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

3rd
Quarter
2009

2nd
Quarter
2009

1st
Quarter
2009

4th
Quarter
2008

3rd
Quarter
2008

% Change Less than
$100
$1 Billion Greater
08Q3$100
Million to
to $10
than $10
09Q3
Million $1 Billion Billion
Billion

Number of institutions reporting securitization activities�����������������������������������������
145
140
132
132
128
Outstanding Principal Balance by Asset Type
1-4 family residential loans�������������������������������������������������������������������������������� $1,225,632 $1,222,173 $1,234,585 $1,256,021 $1,217,682
Home equity loans���������������������������������������������������������������������������������������������
6,205
6,594
6,595
6,692
6,880
Credit card receivables�������������������������������������������������������������������������������������
391,417
397,918
399,113
398,261
417,832
Auto loans����������������������������������������������������������������������������������������������������������
8,277
10,266
11,230
12,040
13,842
Other consumer loans���������������������������������������������������������������������������������������
25,335
26,006
26,692
27,427
28,090
Commercial and industrial loans�����������������������������������������������������������������������
8,435
9,019
8,317
9,705
11,080
All other loans, leases, and other assets*��������������������������������������������������������
192,116
193,377
197,693
198,471
197,010
Total securitized and sold������������������������������������������������������������������������������������������ 1,857,417 1,865,353 1,884,227 1,908,617 1,892,416

13.3

18

62

0.7
-9.8
-6.3
-40.2
-9.8
-23.9
-2.5
-1.8

$211
0
0
0
0
0
52
263

$855
0
3,499
0
0
6
85
4,445

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���

-19.3
-25.3
465.9
66.7
0.4
61.2
-53.4
309.1
-71.9

4
0
0
0
0
0
1
5
0

8
0
606
0
0
0
4
619
0

0
0
1,897
8
0
94
51
2,049
0

6,054
1,006
133,541
737
1,434
180
277
143,228
358

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

Assets Sold with Recourse and Not Securitized

26

39

$2,250 $1,222,316
44
6,162
9,539
378,379
97
8,180
0
25,335
2,819
5,610
187
191,792
14,935 1,837,773

6,066
1,006
136,043
745
1,434
274
333
145,901
358

6,046
1,063
129,373
722
1,399
184
299
139,087
378

6,279
1,120
39,100
912
1,429
367
301
49,509
397

6,892
1,247
23,228
707
1,532
137
612
34,355
830

7,514
1,347
24,039
447
1,428
170
714
35,660
1,273

4.6
1.3
2.9
2.4
3.6
2.9
1.2
3.9

4.3
0.8
2.6
2.2
2.9
2.6
1.9
3.7

4.1
1.1
3.0
2.0
3.1
3.1
0.6
3.5

4.4
1.4
2.9
2.5
3.9
2.6
0.6
3.7

3.8
1.3
2.5
2.1
3.2
1.6
0.2
3.1

2.8
0.0
0.0
0.0
0.0
0.0
0.8
2.4

0.3
0.0
1.8
0.0
0.0
0.0
0.0
1.5

2.2
5.2
2.2
0.6
0.0
7.4
0.3
3.1

4.6
1.2
2.9
2.5
3.6
0.6
1.2
3.9

7.5
1.8
2.6
0.3
3.6
1.2
3.7
5.9

6.6
0.9
2.9
0.2
3.3
1.3
1.6
5.2

5.8
1.4
3.0
0.2
3.5
3.1
1.1
4.6

4.5
1.2
2.5
0.3
3.7
2.1
0.4
3.6

3.2
0.7
2.1
0.2
2.9
1.5
0.2
2.6

1.2
0.0
0.0
0.0
0.0
0.0
0.0
1.0

0.6
0.0
1.4
0.0
0.0
0.0
0.0
1.2

1.9
4.4
1.9
0.1
0.0
2.3
0.0
2.0

7.5
1.8
2.7
0.3
3.6
0.7
3.8
6.0

0.7
1.4
7.6
1.9
0.7
10.0
0.0
2.1

0.5
0.9
4.8
1.1
0.5
6.9
0.0
1.4

0.2
0.6
2.1
0.8
0.2
2.6
0.0
0.6

0.3
0.1
6.4
0.8
0.8
5.9
0.0
1.6

0.3
0.4
4.4
1.3
0.6
3.6
0.0
1.2

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
4.6
0.0
0.0
0.0
0.0
3.6

0.0
1.8
5.4
0.2
0.0
27.0
0.0
8.5

0.7
1.4
7.7
1.9
0.7
1.5
0.0
2.1

396
73,401
930

134
68,128
451

165
77,212
450

124
113,017
436

166
98,826
636

138.6
-25.7
46.2

0
0
0

0
247
2

0
6,451
756

396
66,703
171

2
788
0

4
594
0

5
556
0

5
584
16

6
623
15

-66.7
26.5
-100.0

0
0
0

0
272
0

0
515
0

2
0
0

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

819

824

818

797

787

4.1

158

498

117

46

66,902
1,024
2,844
47,967
118,737

69,854
1,160
3,195
47,559
121,768

70,033
1,348
6,028
46,438
123,847

70,682
1,477
6,698
46,254
125,110

73,033
1,611
7,314
45,203
127,160

-8.4
-36.4
-61.1
6.1
-6.6

1,171
0
1
0
1,172

10,160
24
62
84
10,329

4,250
5
21
175
4,450

51,321
996
2,761
47,708
102,786

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

14,549
104
2,003
10,133
26,789

15,210
113
2,224
10,010
27,557

15,420
183
4,995
9,790
30,388

15,312
189
5,617
9,528
30,647

15,586
203
6,180
9,312
31,281

-6.7
-48.8
-67.6
8.8
-14.4

113
0
1
0
114

2,029
7
51
44
2,131

2,675
3
21
55
2,753

9,731
95
1,931
10,033
21,790

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

60
4,872

60
3,812

56
2,134

51
3,319

49
6,050

22.4
-19.5

21
11

27
43

7
21

5
4,797

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

327

475

936

1,416

3,531

-90.7

0

0

0

327

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

5,978,776

8.1

4,377

75,833

17,658

5,879,912 5,683,430
20,210

22,981

5,615,123 5,528,963
23,064

20,830

-15.2

5

0

96,729 5,801,837
226

17,427

182,740

210,026

273,542

297,908

311,683

-41.4

0

0

0

182,740

5,995
1,163
16.10

10,845
-142
15.70

5,946
2,124
7.70

-390
2,393
6.80

4,110
3,120
7.40

Blank

45.9
-62.7

5
0
0.70

179
62
2.20

220
129
3.60

5,591
972
20.70

* 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

2009, Volume 3, No. 4

INSURANCE FUND INDICATORS
Insured Deposits Grow by 10.2 Percent
■	 DIF Reserve Ratio Declines 38 Basis Points to −0.16 Percent
■	 Fifty Institutions Failed During Third Quarter
■	 Rule Adopted for Prepaid Assessments
■	

Total assets of the nation’s 8,099 FDIC-insured
commercial banks and savings institutions decreased by
$54.3 billion (0.4 percent) during the third quarter of
2009. Total deposits increased by $79.8 billion (0.9
percent) during the quarter, primarily due to activity in
foreign offices, which was up $81.9 billion (5.6
percent). This was the largest increase in foreign office
deposits since the third quarter of 2007 when these
deposits increased by $96.8 billion (7.2 percent).
Domestic deposits were almost unchanged in the third
quarter, declining by $2.0 billion (0.03 percent) from
the previous quarter. Domestic non-interest-bearing
deposits decreased by $17.7 billion (1.2 percent), and
domestic time deposits decreased by $136.9 billion (5.2
percent). Savings deposits and interest-bearing checking accounts increased by $152.5 billion (4.4 percent).
Over the past 12 months, the share of assets funded by
domestic deposits rose from 53.2 percent to 57.0
percent, and the share funded by foreign office deposits
increased from 11.1 percent to 11.7 percent. During the
same period, Federal Home Loan Bank (FHLB)
advances as a percentage of total assets declined from
6.7 percent to 4.3 percent, the smallest percentage on
record (2001 to present). FHLB advances decreased by
$335.9 billion (36.8 percent) over the 12 months
ending September 30, 2009.

percent) during the third quarter, the sharpest decline
since the first quarter of 1991 when they decreased by
$11.9 billion (11.0 percent). Reciprocal brokered
­deposits increased by $1.4 billion (4.1 percent) to
$36.1 billion during the three months ending September 30, 2009.
On May 20, 2009, the President signed the Helping
Families Save Their Homes Act of 2009, which
extended the temporary deposit insurance coverage
limit increase to $250,000 for deposits other than retirement accounts (from the permanent limit of $100,000)
through the end of 2013. The legislation also eliminated the provision in the Emergency Economic Stabilization Act of 2008 that prevented the FDIC from
considering this temporary increase in deposit insurance
coverage for purposes of setting deposit insurance assessments. Beginning September 30, 2009, insured deposit
estimates are based on the $250,000 coverage limit.
Estimated insured deposits at all FDIC-insured institutions (based on $250,000 coverage) increased by $491.5
billion (10.2 percent) in the third quarter of 2009.
The Deposit Insurance Fund (DIF) decreased by $18.6
billion during the third quarter to a negative $8.2
billion (unaudited) primarily because of $21.7 billion in
additional provisions for bank failures. Also, unrealized
losses on available-for-sale securities, combined with
operating expenses, reduced the fund by $1.1 billion.
Accrued assessment income added $3.0 billion to the
fund during the quarter, and interest earned, combined
with realized gains from sale of securities and surcharges
from the Temporary Liquidity Guarantee Program,
added $1.2 billion.

Since the second quarter of 2009, the portion of
brokered deposits exceeding 10 percent of an institution’s domestic deposits has been included in the
formula used to price an institution’s deposit insurance.1
Brokered deposits decreased by $73.4 billion (10.0
For an institution in Risk Category I, the initial base assessment rate
is adjusted using the adjusted brokered deposit ratio. This ratio will
exceed zero if an institution’s brokered deposits are greater than 10
percent of its domestic deposits and its total assets are more than 40
percent greater than they were four years previously. Certain reciprocal brokered deposits are excluded from the calculation of the adjusted
brokered deposit ratio. For an institution in any other risk category, the
initial base assessment rate is increased if the institution’s ratio of
brokered deposits to domestic deposits is greater than 10 percent.
Reciprocal brokered deposits are included in the amount of brokered
deposits for purposes of computing this ratio.
1

FDIC Quarterly

Fifty insured institutions with combined assets of $68.8
billion failed during the third quarter of 2009, the largest number since the second quarter of 1990 when 65
insured institutions failed. Ninety-five insured institutions with combined assets of $104.7 billion failed
during the first three quarters of 2009, at a currently
estimated cost to the DIF of $25.0 billion. The DIF’s

14

2009, Volume 3, No. 4

Quarterly Banking Profile
reserve ratio was negative 0.16 percent on September
30, 2009, down from 0.22 percent on June 30, 2009,
and 0.76 percent one year ago. The September 30,
2009, reserve ratio is the lowest reserve ratio for a
combined bank and thrift insurance fund since June 30,
1992, when the ratio was negative 0.20 percent.

however, an institution’s total annual base assessment
rate for purposes of estimating the institution’s assessment for 2011 and 2012 will be increased by 3 basis
points. For purposes of calculating the amount that an
institution will prepay on December 30, 2009, an institution’s third quarter 2009 assessment base will be
increased quarterly at a 5 percent annual growth rate
through the end of 2012. The FDIC will begin to draw
down an institution’s prepaid assessments on March 30,
2010, representing payment for the regular quarterly
risk-based assessment for the fourth quarter of 2009.

Prepaid Assessments
On November 12, 2009, the FDIC adopted a final rule
amending the assessment regulations to require insured
depository institutions to prepay their quarterly riskbased assessments for the fourth quarter of 2009 and for
all of 2010, 2011, and 2012 on December 30, 2009,
along with each institution’s risk-based assessment for
the third quarter of 2009. For purposes of estimating an
institution’s assessments for the fourth quarter of 2009
and for all of 2010, 2011, and 2012 (and calculating the
amount that an institution will prepay on December 30,
2009), an institution’s assessment rate will be its total
base assessment rate in effect on September 30, 20092;

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

An institution’s risk-based assessment rate may change during a
quarter when a new CAMELS rating is transmitted, or a new long-term
debt-issuer rating is assigned. See 12 CFR 327.4(f). For purposes of
calculating an institution’s prepaid assessment, the FDIC will use the
institution’s CAMELS ratings and, where applicable, long-term debt-­
issuer ratings, and the resulting assessment rate in effect on September 30, 2009.
2

FDIC Quarterly

15

2009, Volume 3, No. 4

Table I-B. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)
Beginning Fund Balance���

3rd
Quarter
2009*

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

2nd
Quarter
2009*

1st
Quarter
2009*

4th
Quarter
2008

Deposit Insurance Fund
2nd
1st
4th
Quarter Quarter Quarter
2008
2008
2007

3rd
Quarter
2008

3rd
Quarter
2007

2nd
Quarter
2007

1st
Quarter
2007

4th
Quarter
2006

3rd
Quarter
2006

2nd
Quarter
2006

$10,368

$13,007

$17,276

$34,588

$45,217

$52,843

$52,413

$51,754

$51,227

$50,745

$50,165

$49,992

$49,564

$49,193

2,965

9,095

2,615

996

881

640

448

239

170

140

94

10

10

7

176

240

212

277

526

651

618

585

640

748

567

476

622

665

732
328

521
298

136
266

302
290

473
249

0
256

0
238

0
262

0
243

0
248

0
239

0
248

0
237

0
242

21,694

11,615

6,637

19,163

11,930

10,221

525

39

132

-3

-73

49

-50

-6

308

375

2

15

16

1

0

-2

24

1

4

5

1

12

-770
-18,611

-957
-2,639

-331
-4,269

551
-17,312

-346
-10,629

1,559
-7,626

127
430

138
659

68
527

-162
482

81
580

-21
173

-18
428

-77
371

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

-8,243

10,368

13,007

17,276

34,588

45,217

52,843

52,413

51,754

51,227

50,745

50,165

49,992

49,564

NM

-77.07

-75.39

-67.04

-33.17

-11.73

4.13

4.48

3.52

3.36

3.15

3.23

3.35

3.21

Reserve Ratio (%)���������������

-0.16

0.22

0.27

0.36

0.76

1.01

1.19

1.22

1.22

1.21

1.20

1.21

1.22

1.23

4,817,201

4,832,921

4,750,807

4,545,350

4,467,849

4,438,180

4,292,221

4,242,607

4,235,044

4,245,266

4,153,786

4,100,013

4,040,353

7.82

8.89

10.68

7.14

5.50

4.54

3.33

3.48

4.82

6.08

6.76

7.02

7.52

7,561,179

7,561,972

7,546,999

7,505,409

7,230,328

7,036,248

7,076,718

6,921,687

6,747,998

6,698,886

6,702,598

6,640,105

6,484,372

6,446,868

4.58

7.47

6.65

8.43

7.15

5.04

5.58

4.24

4.07

3.91

5.71

6.59

6.76

8.68

8,109

8,205

8,257

8,315

8,394

8,462

8,505

8,545

8,570

8,625

8,661

8,692

8,755

8,790

Estimated Insured
Deposits**���������������������������� 5,308,738
Percent change from
four quarters earlier�������
16.79
Domestic Deposits�������������
Percent change from
four quarters earlier�������
Number of institutions
reporting�����������������������

Deposit Insurance Fund Balance
and Insured Deposits
($ Millions)

DIF Reserve Ratios

Percent of Insured Deposits
1.23 1.23 1.22 1.21 1.20 1.21 1.22 1.22
1.19
1.01

3/06
6/06
9/06
12/06
3/07
6/07
9/07
12/07
3/08
6/08
9/08
12/08
3/09
6/09
9/09

0.76

0.36

0.27

0.22
-0.16

3/06

9/06

3/07

9/07

3/08

9/08

3/09

9/09

DIF
Balance

DIF-Insured
Deposits

49,193
49,564
49,992
50,165
50,745
51,227
51,754
52,413
52,843
45,217
34,588
17,276
13,007
10,368
-8,243

4,001,906
4,040,353
4,100,013
4,153,786
4,245,266
4,235,044
4,242,607
4,292,221
4,438,180
4,467,849
4,545,350
4,750,807
4,832,921
4,817,201
5,308,738

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

2009***

2008***

2008

2007

2006

2005

2004

552
$345,931

171
$115,639

252
$159,405

76
$22,189

50
$8,265

52
$6,607

80
$28,250

95
$104,665

13
$347,569

25
$371,945

3
$2,615

0
$0

0
$0

4
$170

8
$1,917,482

0
$0

5
$1,306,042

0
0

0
0

0
0

0
0

* For 2009, preliminary unaudited fund data, which are subject to change.
** The Emergency Economic Stabilization Act of 2008 prohibited the FDIC from considering the temporary coverage increase to $250,000 in setting assessments. Therefore, we do not
include the additional insured deposits in calculating the fund reserve ratio from fourth quarter 2008 through the second quarter 2009. The Helping Families Save Their Home Act of
2009 eliminated the prohibition beginning with the third quarter of 2009, estimates of insured deposits include the temporary coverage increase to $250,000.
*** A
 ssisted institutions represent five institutions under a single holding company that received assistance in 2008, and eight institutions under a different single holding company that
received assistance in 2009.
**** Through September 30.

FDIC Quarterly

16

2009, Volume 3, No. 4

Quarterly Banking Profile
Table III-B. Estimated FDIC-Insured Deposits by Type of Institution
(dollar figures in millions)
Number of
Institutions

September 30, 2009
Commercial Banks and Savings Institutions

Total
Assets

Domestic
Deposits*

Est. Insured
Deposits

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

6,911
4,573
1,492
846

$11,866,395
1,942,120
8,213,334
1,710,941

$6,630,501
1,465,607
4,192,889
972,004

$4,493,927
1,174,525
2,687,714
631,688

FDIC-Insured Savings Institutions����������������������������������������������
		 OTS-Supervised Savings Institutions������������������������������������
		 FDIC-Supervised State Savings Banks���������������������������������

1,188
780
408

1,380,890
1,070,636
310,255

922,639
699,400
223,240

808,124
615,610
192,514

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

8,099

13,247,285

7,553,140

5,302,052

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

10

21,396

8,038

6,687

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

8,109

13,268,681

7,561,179

5,308,738

* Excludes $1.55 trillion in foreign office deposits, which are uninsured.

Table IV-B. Distribution of Institutions and Domestic Deposits Among Risk Categories
Quarter Ending June 30, 2009
(dollar figures in billions)

Risk Category I

Risk Category II
Risk Category III
Risk Category IV

Annual
Rate in
Basis Points
7.00-12.00
12.01- 14.00
14.01- 15.99
16.00-24.00
17.00-22.00
22.01-43.00
27.00-32.00
32.01-58.00
40.00-45.00
45.01-77.50

Number of
Institutions
1,989
1,779
2,584
354
677
337
204
158
67
55

Percent
of Total
Institutions
24.24
21.68
31.50
4.31
8.25
4.11
2.49
1.93
0.82
0.67

Domestic
Deposits
579
1,525
2,360
358
2,158
326
71
107
42
37

Percent
of Total
Domestic
Deposits
7.65
20.17
31.20
4.73
28.53
4.31
0.94
1.41
0.56
0.49

Note: Institutions are categorized based on supervisory ratings, debt ratings and financial data as of June 30, 2009.
Rates do not reflect the application of assessment credits. See notes to users for further information on risk categories and rates.
Assessment rates within a given risk category vary for several reasons, see 12 CFR Part 327,
http://www.fdic.gov/deposit/insurance/initiative/09FinalAD35.pdf

FDIC Quarterly

17

2009, Volume 3, No. 4

TEMPORARY LIQUIDITY GUARANTEE PROGRAM
Final Rule for Phasing Out Debt Guarantee Program Adopted
■	 Transaction Account Guarantee Program Extended to June 30, 2010
■	 More Than 600,000 Additional Transaction Accounts Receive Full Coverage
■	 $307 Billion in Debt Outstanding in Program
■	

A final rule extending the TAGP six months, to June
30, 2010, was adopted on August 26, 2009. Entities
currently participating in the program will have an
opportunity to opt out of the extended program. Depository institutions that remain in the extended program
will be subject to increased fees that are adjusted to
reflect the institution’s risk.3

FDIC Responds to Market Disruptions with TLGP
The FDIC Board approved the Temporary Liquidity
Guarantee Program (TLGP) on October 13, 2008, as
major disruptions in credit markets blocked access to
liquidity for financial institutions.1 The TLGP improved
access to liquidity through the Transaction Account
Guarantee Program (TAGP), which fully guarantees
non-interest-bearing transaction deposit accounts above
$250,000, regardless of dollar amount, and the Debt
Guarantee Program (DGP), which guarantees eligible
senior unsecured debt issued by eligible institutions.

The Board adopted a final rule on October 20, 2009,
that allows the DGP to expire on October 31, 2009.4
The rule also establishes a limited, six-month guarantee
facility upon expiration of the DGP. This emergency
guarantee facility would be available on a case-by-case
basis to entities participating in the DGP, upon application to the FDIC and with the approval of the Chairman after consultation with the Board.

All insured depository institutions are eligible to participate in the TAGP. Institutions eligible for participation
in the DGP include insured depository institutions,
U.S. bank holding companies, certain U.S. savings and
loan holding companies, and other affiliates of insured
depository institutions that the FDIC designates as
eligible entities.

Program Funded by Industry Fees and Assessments
The TLGP does not rely on taxpayer funding or the
Deposit Insurance Fund. Both components of the
program are paid for by direct user fees. Institutions
participating in the TAGP provide customers full coverage on non-interest-bearing transaction accounts for an
annual fee of 10 basis points through year-end 2009. Fees
for qualifying non-interest-bearing transaction accounts
guaranteed between January 1, 2010, and June 30, 2010,
will be based on the participating entity’s risk category
assignment under the FDIC’s risk-based premium system.
Annualized fees will be either 15, 20, or 25 basis points,
depending on an institution’s risk category.

FDIC Extends Transaction Account and Debt
Guarantee Programs
Although financial markets have improved significantly
since the fall of 2008, portions of the industry are still
suffering from recent economic turmoil. To facilitate
the orderly phase-out of the TLGP, and to continue
access to FDIC guarantees where they are needed, the
FDIC Board of Directors (Board) extended both the
TAGP and the DGP.
On March 17, 2009, the Board voted to extend the deadline for issuance of guaranteed debt from June 30, 2009,
to October 31, 2009, and extended the expiration date of
the guarantee to the earlier of maturity of the debt or
December 31, 2012, from June 30, 2012. The FDIC
imposed a surcharge on debt issued with a maturity of one
year or more beginning in the second quarter of 2009.2

Fees for participation in the DGP depend on the maturity of debt issued and range from 50 to 100 basis points
(annualized). A surcharge will be imposed on debt
issued with a maturity of one year or greater after April
1, 2009. For debt that is not issued under the extension,
that is, debt that is issued on or before June 30, 2009,
and matures on or before June 30, 2012, surcharges will
be 10 basis points (annualized) on debt issued by

The FDIC invoked the systemic risk exception pursuant to section
141 of the Federal Deposit Improvement Act of 1991, 12 U.S.C
1823(c)(4) on October 13, 2008. For further information on the TLGP,
see http://www.fdic.gov/regulations/resources/TLGP/index.html.
2
See http://www.fdic.gov/news/board/Mar1709rule.pdf.
1

FDIC Quarterly

See http://www.fdic.gov/news/board/aug26no3.pdf.
See http://www.fdic.gov/regulations/laws/
federal/2009/09finalAD37Oct23.pdf.
3
4

18

2009, Volume 3, No. 4

Quarterly Banking Profile
insured depository institutions and 20 basis points
(annualized) on debt issued by other participating entities. For debt issued under the extension, that is, debt
issued after June 30, 2009, or debt that matures after
June 30, 2012, surcharges will be 25 basis points (annualized) on debt issued by insured depository institutions
and 50 basis points (annualized) on debt issued by other
participating entities. As of September 30, 2009, a total
of $9.6 billion in fees had been assessed under the DGP.

30, 2009. Eligible entities may issue debt up to 125
percent of that outstanding amount. The cap for FDICinsured institutions that had no outstanding short-term
senior unsecured debt other than Fed funds is set at 2
percent of liabilities as of September 30, 2008. Total
debt outstanding at quarter-end represented 50 percent
of issuing entities’ total cap.

$307 Billion in FDIC-Guaranteed Debt Was
Outstanding at September 30, 2009

A Majority of Eligible Entities Have Chosen to
Participate in the TLGP

Eighty-nine financial entities—57 insured depository
institutions and 32 bank and thrift holding companies
and nonbank affiliates—had $307 billion in guaranteed
debt outstanding at the end of the third quarter. Some
banking groups issued FDIC-guaranteed debt at both
the subsidiary and holding company level, but most
guaranteed debt was issued by holding companies or
nonbank affiliates of depository institutions. Bank and
thrift holding companies and nonbank affiliates issued
81 percent of FDIC-guaranteed debt outstanding at
September 30, 2009.

More than 86 percent of FDIC-insured institutions
have opted in to the TAGP, and more than half of all
eligible entities have elected to opt in to the DGP. Lists
of institutions that opted out of the guarantee programs
are posted at http://www.fdic.gov/regulations/resources/
TLGP/optout.html.

$760 Billion in Transaction Accounts over
$250,000 Guaranteed
According to third quarter 2009 Call and Thrift Financial Reports, insured institutions reported 647,787 noninterest-bearing transaction accounts over $250,000, a
decline of 2.9 percent compared with second quarter
2009. These deposit accounts totaled $923 billion, of
which $761 billion was guaranteed under the TAGP.
More than 5,800 FDIC-insured institutions reported
non-interest-bearing transaction accounts over
$250,000 in value.

Debt outstanding at September 30 had longer terms at
issuance, compared to debt outstanding at year-end.
Slightly more than 2 percent of debt outstanding
matures in 180 days or less, compared with 49 percent at
year-end; and 75 percent matures more than two years
after issuance, compared with 39 percent at December
31, 2008. Among types of debt instruments, 89 percent
was in medium-term notes, compared with 44 percent at
year-end. The share of outstanding debt in commercial
paper fell to 2 percent from 43 percent at year-end.

Debt Outstanding Represents 50 Percent of
Total Cap on Issuers’ Guaranteed Debt

Author:	Katherine Wyatt
Chief, Financial Analysis Section
Division of Insurance and Research
(202) 898-6755

The amount of FDIC-guaranteed debt that can be
issued by each eligible entity, or its “cap,” is based on
the amount of its senior unsecured debt outstanding as
of September 30, 2008, that matures on or before June

Table I-C. Participation in Temporary Liquidity Guarantee Program
September 30, 2009
Total Eligible Entities
Transaction Account Guarantee Program
Depository Institutions with Assets <= $10 Billion��������������������������������
7,996
Depository Institutions with Assets > $10 Billion����������������������������������
112
		 Total Depository Institutions*����������������������������������������������������������
8,108
Debt Guarantee Program
Depository Institutions with Assets <= $10 Billion��������������������������������
Depository Institutions with Assets > $10 Billion����������������������������������
		 Total Depository Institutions*����������������������������������������������������������
Bank and Thrift Holding Companies and
Non-Insured Affiliates����������������������������������������������������������������������������
		 All Entities����������������������������������������������������������������������������������������
* Depository institutions include insured branches of foreign banks (IBAs).

FDIC Quarterly

19

Number Opting In

Percent Opting In

6,890
105
6,995

86.2%
93.8%
86.3%

7,996
112
8,108

4,284
104
4,388

53.6%
92.9%
54.1%

6,315
14,423

3,567
7,955

56.5%
55.2%

2009, Volume 3, No. 4

Table II-C. Cap on FDIC-Guaranteed Debt for Opt-In Entities
Opt-In Entities with Senior Unsecured
Debt Outstanding at 9/30/2008
Debt Amount
as of
Number
9/30/2008
Initial Cap

September 30, 2009
(dollar figures in millions)
Depository Institutions with Assets
<= $10 Billion*������������������������������������
Depository Institutions with Assets
> $10 Billion*��������������������������������������
Bank and Thrift Holding
Companies, Non-Insured Affiliates���������
Total���������������������������������������������������������

Opt-In Depository Institutions
with no Senior Unsecured
Debt at 9/30/2008
2% Liabilities
as of
Number
9/30/2008

Total
Entities

Total Initial
Cap

116

$3,532

$4,415

4168

$32,342

4,284

$36,757

44

295,879

369,849

60

25,576

104

395,425

88
248

398,008
697,420

497,511
871,775

3,479
7,707

N/A
57,918

3,567
7,955

497,511
929,692

* Depository institutions include insured branches of foreign banks (IBAs).

N/A - Not applicable

Table III-C. Transaction Account Guarantee Program
December 31,
2008

(dollar figures in millions)
Number of Non-Interest-Bearing Transaction Accounts
over $250,000��������������������������������������������������������������
Amount in Non-Interest-Bearing Transaction .Accounts
over $250,000��������������������������������������������������������������
Amount Guaranteed����������������������������������������������������������

March 31, 2009

June 30, 2009

September 30,
2009

% Change
09Q2-09Q3

527,021

586,459

667,186

647,787

-2.9%

$854,379
$722,624

$859,577
$712,962

$907,134
$740,338

$922,881
$760,934

1.7%
2.8%

Table IV-C. Debt Outstanding in Guarantee Program
September 30, 2009
(dollar figures in millions)
Insured Depository Institutions
Assets <= $10 Billion�������������������������������������������������������
Assets > $10 Billion���������������������������������������������������������
Bank and Thrift Holding Companies,
Non-Insured Affiliates������������������������������������������������������������
All Issuers�����������������������������������������������������������������������

Number

Debt Outstanding

Debt Outstanding
Share of Cap

Cap1 for Group

37
20

$1,631
57,356

$3,012
231,965

54.2%
24.7%

32
89

248,194
307,181

384,606
619,583

64.5%
49.6%

The amount of FDIC-guaranteed debt that can be issued by each eligible entity, or its “cap,” is based on the amount of senior unsecured debt outstanding as of
September 30, 2008. The cap for a depository institution with no senior unsecured debt outstanding at September 30, 2008, is set at 2 percent of total liabilities.
See http://www2.fdic.gov/qbp/2008dec/tlgp2c.html for more information.
1

Table V-C. Fees Assessed Under TLGP
Transaction Account
Guarantee Program*

Debt Guarantee Program
(dollar figures in millions)
Fourth Quarter 2008��������������������������������������������������������������
First Quarter 2009�����������������������������������������������������������������
Second Quarter 2009������������������������������������������������������������
Third Quarter 2009����������������������������������������������������������������

Total Fees
Assessed
$3,437
3,433

Surcharges

1,413

Total���������������������������������������������������������������������������������

Total Fee
Amount
$3,437
3,433

385

Fees Collected
90

1,797

179

691

280

971

182

$8,973

$665

$9,639

$450

* Pro-rated payment in arrears

Table VI-C. Term at Issuance of Debt Instruments Outstanding
September 30, 2009
(dollar figures in millions)
Term at Issuance
90 days or less��������������������������������������
91-180 days�������������������������������������������
181-364 days�����������������������������������������
1-2 years�����������������������������������������������
Over 2-3 years��������������������������������������
Over 3 years������������������������������������������
Total������������������������������������������������
Share of Total����������������������������������������

FDIC Quarterly

Interbank
Other
Commercial Eurodollar
Medium
Interbank
Paper
Deposits Term Notes Deposits
$1,763
3,634
408
0
0
1
5,805
1.9%

$43
3
2
3
0
0
52
0.0%

$0
0
3,400
58,791
76,447
133,985
272,623
88.7%

20

$119
972
1,488
37
0
4
2,621
0.9%

Other
Senior
Unsecured
Other
Debt
Term Note
$0
0
1
0
3,352
3,713
7,065
2.3%

$1
145
1,838
4,790
5,991
6,251
19,017
6.2%

All Debt
$1,926
4,754
7,137
63,622
85,789
143,953
307,181

Share
by Term
0.6%
1.5%
2.3%
20.7%
27.9%
46.9%

2009, Volume 3, No. 4

Quarterly Banking Profile

Notes to Users

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

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

Tables I-A through VIII-A.
The information presented in Tables I-A through V-A of the
FDIC Quarterly Banking Profile is aggregated for all FDICinsured institutions, both commercial banks and 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
Other-Than-Temporary Impairment
When the fair value of an investment in a debt or equity
security is less than its cost basis, the impairment is either
temporary or other-than-temporary. To determine whether
the impairment is other-than-temporary, an institution must
apply other pertinent guidance such as paragraph 16 of FASB
Statement No. 115, Accounting for Certain Investments in Debt
and Equity Securities; FASB Staff Position (FSP) FAS 115-1
and FAS 124-1, The Meaning of Other-Than-Temporary
Impairment and Its Application to Certain Investments; FSP
FAS 115‑2 and FAS 124-2, Recognition and Presentation of
Other-Than-Temporary Impairments; paragraph 6 of
Accounting Principles Board Opinion No. 18, The Equity
Method of Accounting for Investments in Common Stock;
Emerging Issues Task Force (EITF) Issue No. 99-20,
Recognition of Interest Income and Impairment on Purchased
Beneficial Interests and Beneficial Interests That Continue to Be
Held by a Transferor in Securitized Financial Assets; and FSP
EITF 99-20-1, Amendments to the Impairment Guidance of
EITF Issue No. 99-20.
Under FSP FAS 115-2 and FAS 124-2 issued on April 9,
2009, if the present value of cash flows expected to be collected on a debt security is less than its amortized cost basis,
a credit loss exists. In this situation, if an institution does not
intend to sell the security and it is not more likely than not
that the institution will be required to sell the debt security
before recovery of its amortized cost basis less any current-­
period credit loss, an other-than-temporary impairment has
occurred. The amount of the total other-than-temporary
impairment related to the credit loss must be recognized in
earnings, but the amount of the total impairment related to
other factors must be recognized in other comprehensive
income, net of applicable taxes. Although the debt security
would be written down to its fair value, its new amortized cost
basis is the previous amortized cost basis less the other-thantemporary impairment recognized in earnings. In addition,
if an institution intends to sell a debt security whose fair
value is less than its amortized costs basis or it is more likely
than not that the institution will be required to sell the debt

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

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

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

FDIC Quarterly

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2009, Volume 3, No. 4

security before recovery of its amortized cost basis, an otherthan-temporary impairment has occurred and the entire
­difference between the security’s amortized cost basis and its
fair value must be recognized in earnings.
For any debt security held at the beginning of the interim
period in which FSP FAS 115-2 and FAS 124-2 is adopted
for which an other-than-temporary impairment loss has been
previously recognized, if an institution does not intend to sell
such a debt security and it is not more likely than not that
the institution will be required to sell the debt security before
recovery of its amortized cost basis, the institution should
­recognize the cumulative effect of initially applying the FSP
as an adjustment to the interim period’s opening balance of
retained earnings, net of applicable taxes, with a corresponding adjustment to accumulated other comprehensive income.
The cumulative effect on retained earnings must be calculated by comparing the present value of the cash flows expected
to be collected on the debt security with the security’s amortized cost basis as of the beginning of the interim period
of adoption.
FSP FAS 115-2 and FAS 124-2 are effective for interim and
annual reporting periods ending after June 15, 2009. Early
adoption of this FSP is permitted for periods ending after
March 15, 2009, if certain conditions are met. Institutions are
expected to adopt FSP FAS 115-2 and 124-2 for regulatory
reporting purposes in accordance with the FSP’s effective
date.

15, 2008. Similarly, FAS 160 is effective for fiscal years beginning on or after December 15, 2008. Thus, for institutions
with calendar year fiscal years, these two accounting standards
take effect in 2009. Beginning in March 2009, Institution
equity capital and Noncontrolling interests are separately
reported in arriving at Total equity capital.
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 fair value and establishes
a framework for developing fair value estimates for the fair
value measurements that are already required or permitted
under other standards. FASB FSP 157-4, issued in April 2009,
provides additional guidance for estimating fair value in
accordance with FAS 157 when the volume and level of
activity for the asset or liability have significantly decreased.
The FSP also includes guidance on identifying circumstances
that indicate a transaction is not orderly. The FSP is effective
for interim and annual reporting periods ending after June 15,
2009, with early adoption permitted for periods ending after
March 15, 2009.
Fair value continues to be used for derivatives, trading securities, and available-for-sale securities. Changes in fair value go
through earnings for trading securities and most derivatives.
Changes in the fair value of available-for-sale securities are
reported in other comprehensive income. Available-for-sale
securities and held-to-maturity debt securities are written
down to fair value if impairment is other than temporary and
loans held for sale are reported at the lower of cost or fair
value.
FAS 159 allows institutions to report certain financial assets
and liabilities at fair value with subsequent changes in fair
value included in earnings. In general, an institution may
elect the fair value option for an eligible financial asset or liability when it first recognizes the instrument on its balance
sheet or enters into an eligible firm commitment.
FASB Statement No. 158 Employers’ Accounting for Defined Benefit
Pension and Other Postretirement Plans – issued in September
2006 requires a bank to recognize in 2007, and subsequently,
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.
FASB Statement No. 155 Accounting for Certain Hybrid Financial
Instruments – issued in February 2006, requires bifurcation of
certain derivatives embedded in interests in securitized financial assets and permits fair value measurement (i.e., a fair
value option) for any hybrid financial instrument that contains an embedded derivative that would otherwise require
bifurcation under FASB Statement No. 133, Accounting for

Extended Net Operating Loss Carryback Period
for Small Businesses
The American Recovery and Reinvestment Act of 2009,
which was enacted on February 17, 2009, permits qualifying
small businesses, including FDIC-insured institutions, to elect
a net operating loss carryback period of three, four, or five
years instead of the usual carryback period of two years for
any tax year ending in 2008 or, at the small business’s election, any tax year beginning in 2008. Under generally accepted accounting principles, institutions may not record the
effect of this tax change in their balance sheets and income
statements for financial and regulatory reporting purposes
until the period in which the law was enacted, i.e., the first
quarter of 2009.

Business Combinations and Noncontrolling (Minority)
Interests
In December 2007, the FASB issued Statement No. 141
(Revised), Business Combinations (FAS 141(R)), and
Statement No. 160, Noncontrolling Interests in Consolidated
Financial Statements (FAS 160). Under FAS 141(R), all business combinations, including combinations of mutual entities,
are to be accounted for by applying the acquisition method.
FAS 160 defines a noncontrolling interest, also called a
minority interest, as the portion of equity in an institution’s
subsidiary not attributable, directly or indirectly, to the parent
institution. FAS 160 requires an institution to clearly present
in its consolidated financial statements the equity ownership
in and results of its subsidiaries that are attributable to the
noncontrolling ownership interests in these subsidiaries. FAS
141(R) applies prospectively to business combinations for
which the acquisition date is on or after the beginning of the
first annual reporting period beginning on or after December

FDIC Quarterly

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2009, Volume 3, No. 4

Quarterly Banking Profile
Derivative Instruments and Hedging Activities (FAS 133). In
addition, FAS 155 clarifies which interest-only and principalonly strips are not subject to FAS 133.
Purchased Impaired Loans and Debt Securities – Statement of
Position 03-3, 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 buyback option must be brought back on the issuer’s books as
assets. The rebooking of GNMA loans is required regardless
of whether the issuer intends to exercise the buy-back option.
The banking agencies clarified in May 2005 that all GNMA
loans that are rebooked because of delinquency should be
reported as past due according to their contractual terms.
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.
FASB Interpretation No. 48 on Uncertain Tax Positions – FASB
Interpretation No. 48, Accounting for Uncertainty in Income
Taxes (FIN 48), was issued in June 2006 as an interpretation
of FASB Statement No. 109, Accounting for Income Taxes.
Under FIN 48, the term “tax position” refers to “a position
in a previously filed tax return or a position expected to be
taken in a future tax return that is reflected in measuring
­current or deferred income tax assets and liabilities.” FIN 48
further states that a “tax position can result in a permanent
reduction of income taxes payable, a deferral of income taxes
otherwise currently payable to future years, or a change in the
expected realizability of deferred tax assets.” FIN 48 was originally issued effective for fiscal years beginning after December
15, 2006. Banks must adopt FIN 48 for Call Report purposes
in accordance with the interpretation’s effective date except
as follows. On December 31, 2008, the FASB decided to defer
the effective date of FIN 48 for eligible nonpublic enterprises
and to require those enterprises to adopt FIN 48 for annual
periods beginning after December 15, 2008. A nonpublic
enterprise under certain conditions is eligible for deferral,

FDIC Quarterly

even if it opted to issue interim or quarterly financial information in 2007 under earlier guidance that reflected the
adoption of FIN 48.
FASB Statement No. 123 (Revised 2004) and Share-Based
Payments – refer to previously published Quarterly Banking
Profile notes: http://www2.fdic.gov/qbp/2008dec/qbpnot.html
FASB Statement No. 133 Accounting for Derivative Instruments and
Hedging Activities – refer to previously published Quarterly
Banking Profile notes: http://www2.fdic.gov/qbp/2008dec/
qbpnot.html
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
seller- provided credit enhancements.
Capital Purchase Program (CPP) – As announced in October
2008 under the TARP, the Treasury Department purchase of
noncumulative perpetual preferred stock and related warrants
that is treated as Tier 1 capital for regulatory capital purposes
is included in “Total equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued
by publicly-traded banks are reflected as well in “Surplus.”
Warrants to purchase common stock or noncumulative preferred stock of not-publicly-traded bank stock classified in a
bank’s balance sheet as “Other liabilities.”
Construction and development loans – includes loans for all
­property types under construction, as well as loans for land
acquisition and development.
Core capital – common equity capital plus noncumulative perpetual preferred stock plus minority interest in consolidated
subsidiaries, less goodwill and other ineligible intangible
assets. The amount of eligible intangibles (including servicing
rights) included in core capital is limited in accordance with
supervisory capital regulations.
Cost of funding earning assets – total interest expense paid on
deposits and other borrowed money as a percentage of average
earning assets.
Credit enhancements – techniques whereby a company attempts
to reduce the credit risk of its obligations. Credit enhancement may be provided by a third party (external credit
enhancement) or by the originator (internal credit enhancement), and more than one type of enhancement may be
­associated with a given issuance.
Deposit Insurance Fund (DIF) – The Bank (BIF) and Savings
Association (SAIF) Insurance Funds were merged in 2006 by
the Federal Deposit Insurance Reform Act to form the DIF.

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2009, Volume 3, No. 4

Derivatives notional amount – The notional, or contractual,
amounts of derivatives represent the level of involvement in
the types of derivatives transactions and are not a quantification of market risk or credit risk. Notional amounts represent
the amounts used to calculate contractual cash flows to be
exchanged.
Derivatives credit equivalent amount – the fair value of the
derivative plus an additional amount for potential future credit exposure based on the notional amount, the remaining
maturity and type of the contract.

Failed/assisted institutions – An institution fails when regulators take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or
another healthy institution. This action may require the
FDIC to provide funds to cover losses. An institution is
defined as “assisted” when the institution remains open and
receives assistance in order to continue operating.
Fair Value – the valuation of various assets and liabilities on
the balance sheet—including trading assets and liabilities,
available-for-sale securities, loans held for sale, assets and liabilities accounted for under the fair value option, and foreclosed assets—involves the use of fair values. During periods
of market stress, the fair values of some financial instruments
and nonfinancial assets may decline.
FHLB advances – all borrowings by FDIC insured institutions
from the Federal Home Loan Bank System (FHLB), as reported by Call Report filers and by TFR filers.
Goodwill and other intangibles – Intangible assets include servicing rights, purchased credit card relationships, and other identifiable intangible assets. Goodwill is the excess of the
purchase price over the fair market value of the net assets
acquired, less subsequent impairment adjustments. Other
intangible assets are recorded at fair value, less subsequent
quarterly amortization and impairment adjustments.
Loans secured by real estate – includes home equity loans,
junior liens secured by 1-4 family residential properties, and
all other loans secured by real estate.
Loans to individuals – includes outstanding credit card balances
and other secured and unsecured consumer loans.
Long-term assets (5+ years) – loans and debt securities with
remaining maturities or repricing intervals of over five years.
Maximum credit exposure – the maximum contractual credit
exposure remaining under recourse arrangements and other
seller-provided credit enhancements provided by the reporting bank to securitizations.
Mortgage-backed securities – certificates of participation in
pools of residential mortgages and collateralized mortgage
obligations issued or guaranteed by government-sponsored or
private enterprises. Also, see “Securities,” below.
Net charge-offs – total loans and leases charged off (removed
from balance sheet because of uncollectibility), less amounts
recovered on loans and leases previously charged off.
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.

Derivatives transaction types:
Futures and forward contract­­­­­­­s – contracts in which the buyer
agrees to purchase and the seller agrees to sell, at a specified
future date, a specific quantity of an underlying variable or
index at a specified price or yield. These contracts exist for
a variety of variables or indices, (traditional agricultural or
physical commodities, as well as currencies and interest
rates). Futures contracts are standardized and are traded on
organized exchanges which set limits on counterparty credit
exposure. Forward contracts do not have standardized terms
and are traded over the counter.
Option contracts – contracts in which the buyer acquires the
right to buy from or sell to another party some specified
amount of an un­derlying variable or index at a stated price
(strike price) during a period or on a specified future date,
in return for compensation (such as a fee or premium). The
seller is obligated to purchase or sell the variable or index at
the discretion of the buyer of the contract.
Swaps – obligations between two parties to exchange a
series of cash flows at periodic intervals (settlement dates),
for a specified period. The cash flows of a swap are either
fixed, or determined for each settlement date by multiplying
the quantity (notional principal) of the underlying variable
or index by specified reference rates or prices. Except for
currency swaps, the notional principal is used to calculate
each payment but is not exchanged.
Derivatives underlying risk exposure – the potential exposure
characterized by the level of banks’ concentration in particular underlying instruments, in general. Exposure can result
from market risk, credit risk, and operational risk, as well as,
interest rate risk.
Domestic deposits to total assets – total domestic office deposits
as a percent of total assets on a consolidated basis.
Earning assets – all loans and other investments that earn
interest or dividend income.
Efficiency ratio – noninterest expense less amortization of
intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net
operating revenues that are absorbed by overhead expenses,
so that a lower value indicates greater efficiency.
Estimated insured deposits – In general, insured deposits are
total domestic deposits minus estimated uninsured deposits.
Beginning March 31, 2008, for institutions that file Call
reports, insured deposits are total assessable deposits minus
estimated uninsured deposits. Beginning September 30, 2009,
insured deposits include deposits in accounts of $100,000 to
$250,000 that are covered by a temporary increase in the
standard maximum FDIC deposit insurance amount.

FDIC Quarterly

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2009, Volume 3, No. 4

Quarterly Banking Profile
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 ascending order of supervisory concern.
“Problem” institutions are those institutions with financial,
operational, or managerial weaknesses that threaten their
continued financial viability. Depending upon the degree of
risk and supervisory concern, they are rated either a “4” or
“5.” The number and assets of “problem” institutions are
based on FDIC composite ratings. Prior to March 31, 2008,
for institutions whose primary federal regulator was the OTS,
the OTS composite rating was used.
Recourse – an arrangement in which a bank retains, in form or
in substance, any credit risk directly or indirectly associated
with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the
bank’s claim on the asset. If a bank has no claim on an asset
it has sold, then the retention of any credit risk is recourse.
Reserves for losses – the allowance for loan and lease losses on
a consolidated basis.
Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract.
Excludes restructured loans and leases that are not in compliance with the modified terms.
Retained earnings – net income less cash dividends on common and preferred stock for the reporting period.
Return on assets – 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.

FDIC Quarterly

Risk-based capital groups – definition:
(Percent)

Tier 1
Risk-Based
Capital*

Total
Risk-Based
Capital*

Well-Capitalized
Adequately
capitalized
Undercapitalized
Significantly
undercapitalized
Critically
undercapitalized

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 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
initial base assessment rates (in basis points), effective April 1,
2009 for each risk category. Supervisory Group A generally
includes institutions with CAMELS composite ratings of 1 or
2; Supervisory Group B generally includes institutions with a
CAMELS composite rating of 3; and Supervisory Group C
generally includes institutions with CAMELS composite ratings of 4 or 5. For purposes of risk-based assessment capital
groups, undercapitalized includes institutions that are significantly or critically undercapitalized.
Supervisory Group
Capital Category
1. Well Capitalized
2. Adequately Capitalized
3. Undercapitalized

A

I
12–16 bps
II
22 bps

B

C

II
22 bps

III
32 bps

III
32 bps

IV
45 bps

Effective April 1, 2009, the initial base assessment rates are
12 to 45 basis points. An institution’s total assessment rate
may be less than or greater than its initial base assessment
rate as a result of additional risk adjustments.
The base assessment rates for most institutions in Risk
Category I are based on a combination of financial ratios and
CAMELS component ratings (the financial ratios method).
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 are determined by equally weighting the
institution’s CAMELS component ratings, long-term debt issuer
ratings, and the financial ratios method assessment rate. For all
large Risk Category I institutions, additional risk factors are 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 is limited to no more than one basis point.

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2009, Volume 3, No. 4

Effective April 1, 2009, the FDIC introduced three possible
adjustments to an institution’s initial base assessment rate:
(1) a decrease of up to 5 basis points for long-term unsecured
debt and, for small institutions, a portion of Tier 1 capital;
(2) an increase not to exceed 50 percent of an institution’s
assessment rate before the increase for secured liabilities in
excess of 25 percent of domestic deposits; and (3) for nonRisk Category I institutions, an increase not to exceed 10
basis points for brokered deposits in excess of 10 percent of
domestic deposits. After applying all possible adjustments,
minimum and maximum total base assessment rates for each
risk cate­gory are as follows:

(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 corporate level. This can have the
effect of reducing institutions’ reported taxes and increasing
their after-tax earnings.
Temporary Liquidity Guarantee Program (TLGP) – was approved
by the FDIC Board on October 13, 2008. The TLGP was
designed to help relieve the crisis in the credit markets by
giving banks access to liquidity during a time of global financial distress. Participation in the TLGP is voluntary. The
TLGP has two components:
Transaction Account Guarantee Program (TAGP) – provides a full
guarantee of non-interest-bearing deposit transaction
accounts above $250,000, at depository institutions that
elected to participate in the program. On August 26, 2009,
the FDIC Board voted to extend the TAGP six months
beyond its original expiration date to June 30, 2010.
Debt Guarantee Program (DGP) – provides a full guarantee of
senior unsecured debt1 issued by eligible institutions after
October 14, 2008. Initially, debt issued before June 30,
2009, and maturing on or before June 30, 2012, could be
guaranteed. On March 17, 2009, the deadline for issuance
under the program was extended to October 31, 2009, and
the expiration of the guarantee was set at the earlier of
maturity of the debt or December 31, 2012. Institutions
­eligible for participation in the debt guarantee program
include insured depository institutions, U.S. bank holding
companies, certain U.S. savings and loan holding companies, and other affiliates of an insured depository institution
that the FDIC designates as eligible entities. The FDIC
Board adopted a final rule on October 20, 2009, that established a limited six-month emergency guarantee facility
upon expiration of the DGP.
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,

Total Base Assessment Rates*
Risk
Category
I

Risk
Category
II

Risk
Category
III

Risk
Category
IV

Initial base
assessment rate

12–16

22

32

45

Unsecured debt
adjustment

-5  – 0

-5–0

-5  – 0

-5– 0

Secured liability
adjustment

0  – 8

0  –11

0  –16

0  –22.5

Brokered deposit
adjustment

–

0  –10

0  –10

0  –10

Total base
assessment rate

7–24.0

17–43.0

27–58.0

40–77.5

*All amounts for all risk categories are in basis points annually. Total base rates that are
not the minimum or maximum rate will vary between these rates.

Beginning in 2007, each institution is assigned a risk-based
rate for a quarterly assessment period near the end of the
quarter following the assessment period. Payment is generally
due on the 30th day of the last month of the quarter following the assessment period. Supervisory rating changes are
effective for assessment purposes as of the examination
­transmittal date. For institutions with long-term debt issuer
ratings, changes in ratings are effective for assessment pur­
poses as of the date the change was announced.
Special Assessment – On May 22, 2009, the FDIC board
approved a final rule that imposed a 5 basis point special
assessment as of June 30, 2009. The special assessment was
levied on each insured depository institution’s assets minus
its Tier 1 capital as reported in its report of condition as of
June 30, 2009. The special assessment will be collected
September 30, 2009, at the same time that the risk-based
assessment for the second quarter of 2009 is collected. The
special assessment for any institution was capped at 10 basis
points of the institution’s assessment base for the second
quarter of 2009 risk-based assessment.
Risk-weighted assets – assets adjusted for risk-based capital
definitions which include on-balance-sheet as well as off-­
balance-sheet items multiplied by risk-weights that range
from zero to 200 percent. A conversion factor is used to assign
a balance sheet equivalent amount for selected off-balancesheet accounts.
Securities – excludes securities held in trading accounts.
Banks’ securities portfolios consist of securities designated as
“held-to-maturity,” which are reported at amortized cost

FDIC Quarterly

Senior unsecured debt generally includes term Federal funds
purchased, promissory notes, commercial paper, unsubordinated
unsecured notes, certificates of deposit (CDs) standing to the credit of
a bank, and U.S. dollar denominated bank deposits owed to an insured
depository institution.
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2009, Volume 3, No. 4

Quarterly Banking Profile
equipment, collectibles, and household goods. Such fiduciary
assets are not included in the assets of the financial
institution.
Unearned income & contra accounts – unearned income for Call
Report filers only.
Unused loan commitments – includes credit card lines, home equity lines, commitments to make loans for construction, loans
secured by commercial real estate, and unused commitments to
originate or purchase loans. (Excluded are commitments after
June 2003 for originated mortgage loans held for sale, which
are accounted for as derivatives on the balance sheet.)

FDIC Quarterly

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.

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2009, Volume 3, No. 4