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FDIC Quarterly
Quarterly Banking Profile:
Third Quarter 2014
Highlights:
■

Quarterly Earnings of $38.7 Billion Are 7.3 Percent
Higher Than a Year Ago

■

Revenue Growth Is Key to Net Income Improvement

■

Loan Balances for Community Banks Increased,
Outpacing Industry Growth

■

Net Interest Margin for Community Banks Continued
to Improve

■

DIF Reserve Ratio Rises 5 Basis Points to 0.89 Percent

■

Two Institutions Fail During Third Quarter

2014, Volume 8, Number 4

The FDIC Quarterly is published by the Division of Insurance and Research of the Federal Deposit
Insurance Corporation and contains a comprehensive summary of the most current financial results
for the banking industry. Feature articles appearing in the FDIC Quarterly range from timely analysis
of economic and banking trends at the national and regional level that may affect the risk exposure of
FDIC-insured institutions to research on issues affecting the banking system and the development of
regulatory policy.
Single copy subscriptions of the FDIC Quarterly can be obtained through the FDIC Public Information Center, 3501 Fairfax Drive, Room E-1002, Arlington, VA 22226. E-mail requests should be
sent to publicinfo@fdic.gov. Change of address information also should be submitted to the Public
Information Center.
The FDIC Quarterly is available online by visiting the FDIC website at www.fdic.gov. To receive
e-mail notification of the electronic release of the FDIC Quarterly and the individual feature articles,
subscribe at www.fdic.gov/about/subscriptions/index.html.

Chairman

Martin J. Gruenberg

Director, Division of Insurance
and Research

Diane Ellis

Executive Editors

Richard A. Brown
Maureen E. Sweeney

Managing Editors

Matthew Green
Jack Reidhill
Philip A. Shively

Editors

Peggi Gill
Frank Solomon

Publication Manager

Lynne Montgomery

Media Inquiries

(202) 898-6993

FDIC Quarterly
2014, Volume 8, Number 4

Quarterly Banking Profile: Third Quarter 2014
FDIC-insured institutions reported aggregate net income of $38.7 billion in the third quarter of 2014, up $2.6
billion (7.3 percent) from earnings of $36.1 billion the industry reported a year earlier. The increase in earnings was mainly attributable to a $7.8 billion (4.8 percent) increase in net operating revenue, the biggest since
the fourth quarter of 2009. Almost two-thirds of the 6,589 insured institutions reporting (62.9 percent) had
year-over-year growth in quarterly earnings. The proportion of banks that were unprofitable during the third
quarter fell to 6.4 percent from 8.7 percent a year earlier. See page 1.

Community Bank Performance
Community banks—which represent 93 percent of insured institutions—reported net income of $4.9 billion
in the third quarter, up $470.7 million (10.7 percent) from third quarter 2013. The increase was driven by
improved net operating revenue and lower provision expenses. In the third quarter of 2014, loan balances at
community banks grew at a faster pace than in the industry, asset quality indicators continued to show
improvement, and community banks accounted for 45 percent of small loans to businesses. See page 15.

Insurance Fund Indicators
Estimated insured deposits increased 0.4 percent from the prior quarter and increased 2.8 percent over the
12 months ending September 30, 2014. The DIF reserve ratio was 0.89 percent at September 30, 2014, up
from 0.84 percent at June 30, 2014, and 0.68 percent at September 30, 2013. Two FDIC-insured institutions
failed during the quarter. See page 22.

The views expressed are those of the authors and do not necessarily reflect official positions of the Federal Deposit Insurance
Corporation. Some of the information used in the preparation of this publication was obtained from publicly available sources
that are considered reliable. However, the use of this information does not constitute an endorsement of its accuracy by the
Federal Deposit Insurance Corporation. Articles may be reprinted or abstracted if the publication and author(s) are credited.
Please provide the FDIC’s Division of Insurance and Research with a copy of any publications containing reprinted material.

Quarterly Banking Profile

Third Quarter 2014

INSURED INSTITUTION PERFORMANCE
Quarterly Earnings of $38.7 Billion Are 7.3 Percent Higher Than a Year Ago
Revenue Growth Is Key to Net Income Improvement
Loan-Loss Provisions Post First Year-Over-Year Increase Since 2009
Balances of Troubled Loans Continue to Decline

■
■
■
■

terest income was $5.4 billion (9.2 percent) higher, as
gains on loan sales increased by $1.2 billion (45.6
percent), and trading income was up $1.1 billion (25.3
percent). This is the first time in the last five quarters
that noninterest income has posted a year-over-year
increase. More than half of all banks—52 percent—
reported growth in noninterest income. Net interest
income increased by $2.4 billion (2.3 percent), with 71
percent of institutions reporting year-over-year
increases. Total interest income was $1.2 billion (1
percent) higher than a year ago, while total interest
expense was $1.2 billion (9.3 percent) lower. The 3.14
percent average net interest margin in the third quarter
was 12 basis points lower than in third quarter 2013,
and was virtually unchanged from the 3.15 percent
average in second quarter 2014. Most of the margin
erosion remained concentrated among some of the largest banks. Slightly more than half of all banks—51
percent—reported year-over-year increases in their net
interest margins.

More Banks Are Reporting Higher Earnings
Improving revenue performance across a growing
proportion of institutions helped lift third quarter net
income to $38.7 billion, a $2.6 billion (7.3 percent)
increase over third quarter 2013 industry earnings.
Almost 63 percent of institutions reported year-overyear improvement in quarterly net income, up from 50
percent a year ago. Only 6.4 percent reported net losses
for the quarter, compared with 8.7 percent a year ago.
The average quarterly return on assets was 1.02 percent,
slightly above the 1 percent return on assets in third
quarter 2013.

Revenues Post Largest Increase in Five Years
Net operating revenue (net interest income plus total
noninterest income) totaled $171.3 billion, a year-overyear increase of $7.8 billion (4.8 percent). This is the
largest year-over-year growth in revenue since fourth
quarter 2009. Almost 69 percent of all banks reported
higher net operating revenue versus a year ago. Nonin-

Chart 1

Chart 2
Unprofitable Institutions and Institutions
With Increased Earnings

Quarterly Net Income

All FDIC-Insured Institutions

Billions of Dollars
$50
$40

35.2
28.728.5

$30
$20

17.4

$10

-$20

23.8

40.4
38.2

40.1
39.8
38.7
37.3
36.1

70

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

60

25.3

21.4

50
40

2.1

30

$0
-$10

20.9

37.5
34.8 34.4
34.5

Percentage of All FDIC-Insured Institutions
80

-1.7
-6.1
-12.6

20

Securities and Other Gains/Losses, Net
Net Operating Income

10

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3
2009
2010
2011
2012
2013
2014

0

2006

2007

2008

2009

2010

2011

2012

2013

2014

Source: FDIC.

Source: FDIC.

FDIC Quarterly

Percentage of Institutions With Quarterly Losses

1

2014, Volume 8, No. 4

million (45.2 percent) lower than a year ago, while
charge-offs of home equity lines of credit were down
$526 million (45.9 percent). Credit card charge-offs
were $366 million (6.9 percent) lower, and charge-offs
on real estate loans secured by nonfarm nonresidential
properties declined by $360 million (61.1 percent). Net
charge-offs of auto loans were $104 million (22.8
percent) higher.

Litigation Expenses Decline
Noninterest expenses were $2 billion (1.9 percent)
higher than a year ago. Salaries and employee benefits
expenses were $2 billion (4.3 percent) higher, even
though there were 31,731 (1.5 percent) fewer employees than in third quarter 2013. Goodwill impairment
charges totaled $1.3 billion, a year-over-year increase of
$1.1 billion. Itemized charges for litigation expenses at
large banks totaled $3.7 billion, which was $1.6 billion
less than a year ago.

Noncurrent Loan Balances Continue to Fall
The amount of noncurrent loan and lease balances (90
days or more past due or in nonaccrual status) fell for
the 18th quarter in a row, declining by $9.7 billion (5.3
percent) in the three months ended September 30. All
major loan categories except loans to individuals (credit
cards, auto loans, and other loans to individuals) had
declines in noncurrent balances. The largest decline
occurred in 1-to-4 family residential mortgages, where
noncurrent balances fell by $7.7 billion (6.6 percent).
Noncurrent real estate loans secured by nonfarm
nonresidential properties declined by $1.1 billion (6.2
percent). In contrast to the overall declining trend in
noncurrent loans, noncurrent balances rose during the
quarter in credit cards (up $275 million, 3.8 percent),
auto loans (up $99 million, 10.8 percent), and other
loans to individuals (up $113 million, 2.7 percent). The
percentage of loans and leases that were noncurrent at
the end of the third quarter was 2.11 percent, the
lowest average since midyear 2008. Almost 29 percent
of all noncurrent loans consisted of residential mortgage
loans with GNMA guarantees.

Provisions Increase for First Time in Five Years
Loan-loss provisions totaled $7.2 billion, which was
$1.4 billion (23.9 percent) more than banks set aside
for loan losses in third quarter 2013. This is the first
year-over-year increase in quarterly loss provisions in
five years. A year ago, 400 banks reported negative
quarterly loss provisions totaling $1.7 billion; in the
third quarter, 402 institutions reported negative quarterly provisions totaling $331 million.

Charge-Off Rate Falls to Seven-Year Low
Insured institutions charged off $9.2 billion (net) in
uncollectible loan balances in the third quarter, down
$2.4 billion (21 percent) from a year ago. This is the
17th consecutive quarter that charge-offs have been
below year-earlier levels. The quarterly net charge-off
rate of 0.45 percent was the lowest average since first
quarter 2007. All major loan categories except auto
loans registered lower levels of charge-offs. Charge-offs
of 1-to-4 family residential mortgage loans were $695

Chart 3

Chart 4
Quarterly Net Operating Revenue

Billions of Dollars
$180

Percentage of Institutions Reporting Year-Over-Year
Growth in Net Operating Revenue

All FDIC-Insured Institutions

Percent
90

$160

80

$140

Quarterly Noninterest Income

$120

70
60

$100

50

$80

40

$60

Quarterly Net Interest Income

30

$40

20

$20
$0

All FDIC-Insured Institutions

10
0

123 41234 12341 23412 34123 41234 123
2007
2008
2009
2010
2011
2012
2013
2014

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: FDIC.

Source: FDIC.

FDIC Quarterly

2

2014, Volume 8, No. 4

Quarterly Banking Profile
Reserve Coverage of Noncurrent Loans Improves
for Ninth Consecutive Quarter

Investments in Treasury Securities Post
Sizable Increase

Loan-loss reserves fell for the 18th consecutive quarter.
Net charge-offs of $9.2 billon exceeded loss provisions
of $7.2 billion, as total reserves fell by $2.9 billion (2.3
percent) during the three months ended September 30.
The $125.3 billion in reserves at the end of September
was less than half the peak level of $263.2 billion
reached at the end of first quarter 2010. Despite the
decline in reserves, the average coverage ratio of
reserves to noncurrent loans improved for a ninth
consecutive quarter, from 70.6 percent to 72.9 percent,
owing to the larger decline in noncurrent loan balances
during the quarter.

Total assets of insured institutions increased by $176.7
billion (1.2 percent) during the quarter. Banks
increased their investment securities holdings by $53.1
billion (1.7 percent), as balances of U.S. Treasury securities rose by $72 billion (26.3 percent). Total loan and
lease balances increased by $50.9 billion (0.6 percent),
as most major loan categories posted quarterly increases.
Loans to commercial and industrial borrowers increased
by $10.1 billion (0.6 percent), auto loans rose by $9
billion (2.4 percent), real estate loans secured by multifamily residential properties were up by $7.8 billion (2.8
percent), real estate loans secured by nonfarm nonresidential properties increased by $7.7 billion (0.7
percent), and real estate construction and development
loans grew by $7.4 billion (3.3 percent). Loans to
foreign banks fell by $15.6 billion (13 percent), and
balances of residential mortgage loans declined by $6.7
billion (0.4 percent), as the amount of mortgage
balances sold during the quarter exceeded the balances
of new mortgages originated for sale by $20.7 billion.
Unfunded loan commitments increased by $107.4
billion (1.7 percent). Loans to small businesses and
farms increased by $2.2 billion (0.3 percent), as 54
percent of all banks reported growth in their small business/farm portfolios. Assets in trading accounts rose by
$36.8 billion (6.1 percent).

Capital Growth Trails Growth in Assets
Equity capital increased by $12.1 billion (0.7 percent),
as retained earnings contributed $13.2 billion to capital
growth. Declared dividends in the third quarter totaled
$25.5 billion, an increase of $2.6 billion (11.6 percent)
from a year ago. Other comprehensive income declined
by $6.1 billion, while goodwill fell by $627 million (0.2
percent) during the three months ended September 30.
The average equity-to-assets ratio fell from 11.25
percent to 11.20 percent during the quarter. At the end
of the quarter, 98.5 percent of all insured institutions,
representing 99.8 percent of total industry assets, met or
exceeded the requirements for the highest regulatory
capital category as defined for Prompt Corrective
Action purposes.

Chart 5

Chart 6

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

Noncurrent Loan Rate and Quarterly Net Charge-Off Rate

Billions of Dollars
$5

Percent
6

All FDIC-Insured Institutions

1.4

$0

5

All FDIC-Insured Institutions

Noncurrent Loan Rate

-$5
4

-$10
-$15

3

-$20

2

-$25
-$30
-$35

1

-30.7

1

2 3
2011
Source: FDIC.

FDIC Quarterly

4

1

2 3
2012

4

1

2 3
2013

4

1

2 3
2014

0
2006

Quarterly Net Charge-Off Rate
2007

2008

2009

2010

2011

2012

2013

2014

Source: FDIC.

3

2014, Volume 8, No. 4

Large Deposits Account for Bulk of Funding Growth

“Problem List” Continues to Improve

For a second consecutive quarter, large denomination
(> $250,000) deposits accounted for much of the
growth in industry funding. Balances in these accounts
increased by $124.9 billion (2.5 percent), representing
three-quarters of the $164.9 billion growth in total
liabilities. Balances in smaller-denomination accounts
declined by $11.3 billion (0.2 percent). Nondeposit
liabilities rose by $58.6 billion (3 percent), as liabilities in trading accounts increased by $44.8 billion
(20.3 percent).

The number of insured institutions reporting financial
results fell to 6,589, from 6,656 in the second quarter.
Two insured institutions failed during the third quarter,
compared with six failures a year ago. Mergers absorbed
64 institutions, and one institution in the process of
voluntary liquidation did not file a report. For a third
consecutive quarter, no new reporters were added.
There has been only one de novo bank charter since
fourth quarter 2010. The number of institutions on the
FDIC’s “Problem List” fell from 354 to 329 during the
quarter, and assets of “problem” banks declined from
$110.2 billion to $102.3 billion. This is the 14th
consecutive quarter that the number and assets of
“problem” institutions have declined, and the fewest
“problem” institutions since March 31, 2009. The
number of full-time equivalent employees at insured
institutions declined for the sixth time in the past
seven quarters, falling by 11,364 (0.6 percent) from
second-quarter levels.
Author:

Chart 7

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

Chart 8
Quarterly Changes in the Number of
Troubled Institutions

Quarterly Change in Loan Balances
All FDIC-Insured Institutions

Billions of Dollars
$300
237
$250
221*
189 203
178
$200
134
$150
118
102
91
$100
73 70
67
65
61
51
38
28
$50 43
24
$0
-6
-7 -14
-$50
-37
-63
-$100
-107
-116 -109
-126
-$150
-133
-140
-$200
-210
-$250

200
175

45

Quarterly Failures

24

125
100

41

12

Net Quarterly Change in
Number of Problem Banks

150 45
136
111
41
50
30
81
2
73
54
25 2 54 53
26 22 26
31
18 16 15 12 8 4 12 6 2 5 7 2
27
24
14
0
4
-25
-23 -21-31
-38 -39 -38
-40
-25
-48
-43
-41
-56
-59
-57
-50

75

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3
2007
2008
2009
2010
2011
2012
2013
2014

Source: FDIC.
*FASB Statements 166 and 167 resulted in the consolidation of large amounts of securitized
loan balances back onto banks’ balance sheets in the first quarter of 2010. Although the
total amount consolidated cannot be precisely quantified, the industry would have reported
a decline in loan balances for the quarter absent this change in accounting standards.

FDIC Quarterly

50

150

-75

9

21

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3
2008
2010
2009
2011
2012
2014
2013

Source: FDIC.

4

2014, Volume 8, 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��������������������������������������������������������������������������������������

2014**
1.03
9.19
9.52
1.29
0.49
5.11
3.15
2.36
6,589
5,705
884
6.57
329
$102
14
0

2013**
1.06
9.47
9.40
1.75
0.72
2.68
3.26
10.86
6,891
5,937
954
7.91
515
$174
22
0

2013
1.07
9.54
9.40
1.63
0.69
1.94
3.26
12.83
6,812
5,876
936
8.15
467
$153
24
0

2012
1.00
8.91
9.15
2.20
1.10
4.02
3.42
17.81
7,083
6,096
987
10.98
651
$233
51
0

2011
0.88
7.79
9.07
2.61
1.55
4.30
3.60
43.57
7,357
6,291
1,066
16.22
813
$319
92
0

2010
0.65
5.85
8.89
3.11
2.55
1.77
3.76
1,594.54
7,658
6,530
1,128
22.15
884
$390
157
0

2009
-0.08
-0.73
8.60
3.37
2.52
-5.45
3.49
-155.98
8,012
6,840
1,172
30.84
702
$403
140
8

* 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
2014
6,589
2,048,639

2nd Quarter
2014
6,656
2,060,003

3rd Quarter
2013
6,891
2,080,370

%Change
13Q3-14Q3
-4.4
-1.5

$15,349,171
4,136,065
1,838,209
1,133,226
230,614
496,171
1,674,122
1,382,426
683,022
72,966
896,442
1,906
8,160,114
125,255
8,034,859
3,166,150
24,890
363,944
3,759,328

$15,172,440
4,123,446
1,844,874
1,125,525
223,186
499,172
1,664,072
1,366,721
678,337
69,635
887,148
1,854
8,109,169
128,190
7,980,978
3,113,091
27,892
365,590
3,684,889

$14,603,589
4,053,179
1,842,582
1,092,515
206,052
516,674
1,541,635
1,331,679
677,074
67,994
809,401
1,857
7,802,031
142,582
7,659,449
2,957,632
31,819
367,118
3,587,570

5.1
2.0
-0.2
3.7
11.9
-4.0
8.6
3.8
0.9
7.3
10.8
2.6
4.6
-12.2
4.9
7.1
-21.8
-0.9
4.8

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

15,349,171
11,596,581
10,172,703
1,423,878
1,393,682
97,389
533,711
1,727,807
1,719,382

15,172,440
11,490,263
10,058,721
1,431,542
1,382,342
97,802
486,019
1,716,014
1,707,268

14,603,589
11,028,278
9,599,748
1,428,531
1,315,650
108,673
513,739
1,637,248
1,622,431

5.1
5.2
6.0
-0.3
5.9
-10.4
3.9
5.5
6.0

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���������������������������������������������������������������������������������������
First Three
INCOME DATA
Quarters 2014
Total interest income�������������������������������������������������������������������
$351,532
Total interest expense�����������������������������������������������������������������
35,661
Net interest income��������������������������������������������������������������
315,871
Provision for loan and lease losses��������������������������������������������
21,540
Total noninterest income�������������������������������������������������������������
187,268
Total noninterest expense�����������������������������������������������������������
314,950
Securities gains (losses)�������������������������������������������������������������
2,347
Applicable income taxes�������������������������������������������������������������
52,444
Extraordinary gains, net��������������������������������������������������������������
-116
Total net income (includes minority interests)���������������������
116,436
		
Bank net income������������������������������������������������������������
115,955
Net charge-offs����������������������������������������������������������������������������
29,658
Cash dividends����������������������������������������������������������������������������
67,150
Retained earnings�����������������������������������������������������������������������
48,805
Net operating income�����������������������������������������������������������
114,875

66,250
171,921
89,211
1,718,418
13,695,240
443,175
6,434,391
18,175,602
967,830
242,940,302
First Three
Quarters 2013
$352,202
40,855
311,347
25,150
192,559
314,635
3,980
53,029
167
115,239
114,674
41,565
58,150
56,524
112,230

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



FDIC Quarterly

65,700
181,577
94,110
1,716,668
13,524,176
437,480
6,326,985
18,342,151
965,737
239,190,963
3rd Quarter
%Change
2014
-0.2
$118,781
-12.7
11,846
1.5
106,935
-14.4
7,194
-2.8
64,338
0.1
108,511
-41.0
755
-1.1
17,400
N/M
-112
1.0
38,811
1.1
38,700
-28.7
9,234
15.5
25,505
-13.7
13,195
2.4
38,367

73,090
221,201
100,512
1,668,572
12,936,612
373,052
6,126,180
19,034,601
761,133
241,599,691
3rd Quarter
2013
$117,579
13,060
104,519
5,805
58,913
106,486
543
15,731
259
36,212
36,074
11,683
22,863
13,212
35,593

-9.4
-22.3
-11.2
3.0
5.9
18.8
5.0
-4.5
27.2
0.6
%Change
13Q3-14Q3
1.0
-9.3
2.3
23.9
9.2
1.9
39.0
10.6
N/M
7.2
7.3
-21.0
11.6
-0.1
7.8

N/M - Not Meaningful

5

2014, Volume 8, No. 4

TABLE III-A. Third Quarter 2014, All FDIC-Insured Institutions
Asset Concentration Groups*
THIRD QUARTER
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������
6,589
Commercial banks�������������������������������������
5,705
Savings institutions�����������������������������������
884
Total assets (in billions)������������������������������������
$15,349.2
Commercial banks�������������������������������������
14,290.1
Savings institutions�����������������������������������
1,059.1
Total deposits (in billions)���������������������������������
11,596.6
Commercial banks�������������������������������������
10,789.0
Savings institutions�����������������������������������
807.6
Bank net income (in millions)���������������������������
38,700
Commercial banks�������������������������������������
35,618
Savings institutions�����������������������������������
3,082

Credit
Card
International Agricultural Commercial
Banks
Banks
Banks
Lenders
16
3
1,501
3,285
13
3
1,482
2,967
3
0
19
318
$605.5
$3,691.3
$254.1
$5,186.5
516.1
3,691.3
248.6
4,794.2
89.4
0.0
5.5
392.3
339.5
2,583.6
209.4
4,019.7
277.0
2,583.6
206.2
3,732.9
62.6
0.0
3.2
286.8
4,674
7,273
811
12,217
3,612
7,273
781
11,410
1,062
0
30
807

Mortgage Consumer
Lenders
Lenders
570
50
170
40
400
10
$435.5
$167.5
143.0
82.6
292.4
84.9
320.8
140.5
107.5
69.6
213.3
70.8
921
494
455
282
466
212

Other
Specialized
All Other
<$1 Billion
<$1 Billion
371
728
334
640
37
88
$60.5
$128.5
55.6
108.4
4.8
20.1
49.2
107.7
45.7
91.4
3.5
16.2
321
295
189
266
132
29

All Other
>$1 Billion
65
56
9
$4,819.8
4,650.2
169.6
3,826.2
3,675.1
151.1
11,695
11,350
345

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

3.49
0.35
3.14
1.69
2.85
0.19
1.01
1.47
1.02
9.04
0.45

10.27
0.69
9.58
4.11
5.82
2.27
3.09
4.88
3.10
21.01
2.62

2.77
0.36
2.42
1.85
2.66
0.11
0.79
1.17
0.79
8.29
0.68

4.21
0.49
3.72
0.66
2.51
0.12
1.27
1.50
1.28
11.32
0.09

3.82
0.40
3.42
1.27
2.89
0.12
0.95
1.34
0.95
7.91
0.25

3.40
0.68
2.72
0.97
2.31
0.03
0.80
1.23
0.83
6.92
0.15

4.06
0.47
3.59
1.51
2.68
0.42
1.18
1.85
1.18
11.98
0.57

3.11
0.37
2.74
5.32
4.85
0.08
2.10
2.92
2.13
14.98
0.30

3.98
0.46
3.52
0.92
2.97
0.12
0.89
1.12
0.92
7.77
0.24

2.73
0.19
2.54
1.81
2.61
0.08
0.96
1.41
0.98
8.78
0.26

77.91
61.72
6.43
62.89

110.76
43.67
0.00
68.75

46.50
66.71
0.00
66.67

206.52
60.67
2.60
63.56

68.92
63.84
7.06
66.73

34.17
65.05
9.47
54.56

105.57
53.40
0.00
66.00

97.59
61.78
12.67
52.29

89.32
71.02
6.73
55.49

64.50
62.69
4.62
66.15

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

0
64
2

0
0
0

0
0
0

0
13
0

0
46
2

0
1
0

0
0
0

0
0
0

0
2
0

0
2
0

PRIOR THIRD QUARTERS
(The way it was...)
Return on assets (%)��������������������������������2013
��������������������������������������2011
������������������������������������� 2009

1.00
1.03
0.06

3.38
3.04
0.35

0.52
1.07
-0.04

1.24
1.28
0.94

0.99
0.77
-0.32

0.92
0.76
0.26

1.04
2.08
0.20

1.98
2.12
1.03

0.85
1.06
0.74

1.07
0.99
0.63

Net charge-offs to loans & leases (%)�����2013
��������������������������������������2011
������������������������������������� 2009

0.60
1.46
2.72

2.91
5.07
10.67

0.86
1.68
3.18

0.09
0.41
0.60

0.35
1.14
2.14

0.30
0.77
1.59

0.68
1.56
2.64

0.46
0.27
0.80

0.31
0.54
0.57

0.42
1.27
2.63

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

FDIC Quarterly

6

2014, Volume 8, No. 4

Quarterly Banking Profile
TABLE III-A. Third Quarter 2014, All FDIC-Insured Institutions
Asset Size Distribution
THIRD QUARTER
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������������
6,589
Commercial banks�������������������������������������������
5,705
Savings institutions�����������������������������������������
884
Total assets (in billions)������������������������������������������ $15,349.2
Commercial banks�������������������������������������������
14,290.1
Savings institutions�����������������������������������������
1,059.1
Total deposits (in billions)���������������������������������������
11,596.6
Commercial banks�������������������������������������������
10,789.0
Savings institutions�����������������������������������������
807.6
Bank net income (in millions)���������������������������������
38,700
Commercial banks�������������������������������������������
35,618
Savings institutions�����������������������������������������
3,082

Geographic Regions*

Less Than
$100
$1 Billion
Greater
$100
Million to
to
Than
Million
$1 Billion $10 Billion $10 Billion New York
1,940
3,966
575
108
816
1,710
3,440
463
92
454
230
526
112
16
362
$114.2
$1,227.5
$1,531.4 $12,476.1
$3,045.0
100.9
1,040.1
1,240.1
11,909.0
2,582.0
13.3
187.4
291.3
567.1
463.0
96.1
1,021.5
1,192.4
9,286.6
2,253.1
85.7
872.6
977.0
8,853.7
1,916.8
10.4
148.9
215.4
432.9
336.3
253
3,168
4,264
31,015
6,577
223
2,739
3,675
28,982
5,808
30
430
589
2,033
769

Atlanta
823
744
79
$3,134.3
3,048.3
85.9
2,429.4
2,365.6
63.8
7,148
6,947
201

Chicago
1,427
1,190
237
$3,503.2
3,393.3
110.0
2,552.0
2,469.3
82.7
7,204
6,941
263

Kansas
City
1,614
1,545
69
$3,363.9
3,302.4
61.5
2,528.2
2,480.5
47.7
9,512
9,402
110

San
Dallas
Francisco
1,387
522
1,295
477
92
45
$884.9
$1,417.9
778.2
1,185.9
106.6
232.0
732.2
1,101.8
644.4
912.4
87.8
189.3
2,594
5,665
2,240
4,280
354
1,385

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

3.49
0.35
3.14
1.69
2.85
0.19
1.01
1.47
1.02
9.04
0.45

4.18
0.48
3.71
1.14
3.39
0.12
0.87
1.05
0.89
7.23
0.22

4.24
0.50
3.74
1.12
3.17
0.12
1.02
1.31
1.04
9.31
0.18

4.22
0.44
3.78
1.30
3.04
0.15
1.13
1.55
1.11
9.32
0.24

3.32
0.32
3.00
1.80
2.79
0.20
0.99
1.48
1.00
8.99
0.53

3.74
0.41
3.32
1.54
2.86
0.33
0.86
1.32
0.86
7.22
0.68

3.40
0.28
3.12
1.66
3.03
0.17
0.89
1.26
0.93
7.54
0.35

2.75
0.27
2.48
1.87
2.75
0.08
0.83
1.23
0.83
8.34
0.32

3.73
0.40
3.33
1.50
2.69
0.15
1.13
1.63
1.14
11.01
0.55

4.01
0.33
3.68
1.38
3.09
0.13
1.17
1.53
1.17
10.47
0.21

4.09
0.44
3.64
2.25
2.89
0.30
1.62
2.42
1.61
12.67
0.44

77.91
61.72
6.43
62.89

96.16
74.39
11.49
56.08

100.41
68.97
4.69
65.18

94.90
62.22
2.43
68.70

75.59
60.80
0.93
70.37

91.66
58.91
8.82
62.38

84.59
67.56
9.72
62.33

58.00
67.05
7.29
60.97

53.00
58.87
4.34
62.52

100.96
64.57
4.04
64.82

108.99
50.84
8.05
65.90

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

0
64
2

0
25
1

0
35
1

0
4
0

0
0
0

0
7
0

0
12
1

0
15
1

0
13
0

0
13
0

0
4
0

PRIOR THIRD QUARTERS
(The way it was…)
Return on assets (%)��������������������������������������2013
�������������������������������������������� 2011
������������������������������������������� 2009

1.00
1.03
0.06

0.74
0.61
0.11

0.92
0.64
-0.10

1.17
0.91
-0.54

0.99
1.10
0.17

1.06
0.97
0.05

0.94
0.76
-0.16

0.53
0.96
0.24

1.25
1.26
0.85

1.06
1.06
0.47

1.54
1.46
-0.31

Net charge-offs to loans & leases (%)�����������2013
�������������������������������������������� 2011
������������������������������������������� 2009

0.60
1.46
2.72

0.28
0.63
0.88

0.34
0.92
1.27

0.31
1.00
2.17

0.68
1.63
3.10

0.81
1.79
3.07

0.55
1.70
2.70

0.46
1.02
2.59

0.75
1.66
2.53

0.28
0.88
1.45

0.50
1.05
3.15

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

FDIC Quarterly

7

2014, Volume 8, No. 4

TABLE IV-A. First Three Quarters 2014, All FDIC-Insured Institutions
Asset Concentration Groups*
FIRST THREE QUARTERS
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������
6,589
Commercial banks�������������������������������������
5,705
Savings institutions�����������������������������������
884
Total assets (in billions)������������������������������������
$15,349.2
Commercial banks�������������������������������������
14,290.1
Savings institutions�����������������������������������
1,059.1
Total deposits (in billions)���������������������������������
11,596.6
Commercial banks�������������������������������������
10,789.0
Savings institutions�����������������������������������
807.6
Bank net income (in millions)���������������������������
115,955
Commercial banks�������������������������������������
107,048
Savings institutions�����������������������������������
8,907
Performance Ratios (annualized, %)
Yield on earning assets������������������������������������
Cost of funding earning assets������������������������
Net interest margin������������������������������������
Noninterest income to assets���������������������������
Noninterest expense to assets�������������������������
Loan and lease loss provision to assets����������
Net operating income to assets�����������������������
Pretax return on assets������������������������������������
Return on assets�����������������������������������������������
Return on equity�����������������������������������������������
Net charge-offs to loans and leases����������������
Loan and lease loss provision to
net charge-offs����������������������������������������������
Efficiency ratio��������������������������������������������������
% of unprofitable institutions����������������������������
% of institutions with earnings gains����������������

Credit
Card
International Agricultural Commercial
Banks
Banks
Banks
Lenders
16
3
1,501
3,285
13
3
1,482
2,967
3
0
19
318
$605.5
$3,691.3
$254.1
$5,186.5
516.1
3,691.3
248.6
4,794.2
89.4
0.0
5.5
392.3
339.5
2,583.6
209.4
4,019.7
277.0
2,583.6
206.2
3,732.9
62.6
0.0
3.2
286.8
14,332
22,304
2,258
36,650
11,375
22,304
2,177
34,335
2,957
0
82
2,315

Mortgage Consumer
Lenders
Lenders
570
50
170
40
400
10
$435.5
$167.5
143.0
82.6
292.4
84.9
320.8
140.5
107.5
69.6
213.3
70.8
2,886
1,362
1,458
727
1,429
635

Other
Specialized
All Other
<$1 Billion
<$1 Billion
371
728
334
640
37
88
$60.5
$128.5
55.6
108.4
4.8
20.1
49.2
107.7
45.7
91.4
3.5
16.2
932
858
537
779
395
79

All Other
>$1 Billion
65
56
9
$4,819.8
4,650.2
169.6
3,826.2
3,675.1
151.1
34,373
33,357
1,015

3.51
0.36
3.15
1.66
2.80
0.19
1.02
1.50
1.03
9.19
0.49

10.10
0.67
9.43
4.28
5.79
2.13
3.20
5.07
3.20
21.69
2.86

2.79
0.38
2.41
1.75
2.55
0.12
0.82
1.18
0.81
8.62
0.73

4.13
0.49
3.63
0.61
2.48
0.10
1.18
1.41
1.20
10.76
0.09

3.84
0.40
3.44
1.26
2.86
0.13
0.97
1.37
0.97
8.11
0.26

3.40
0.67
2.73
0.95
2.25
0.04
0.83
1.27
0.86
7.27
0.19

3.95
0.47
3.47
1.36
2.53
0.45
1.10
1.72
1.10
11.31
0.62

3.11
0.37
2.74
5.10
4.74
0.06
2.05
2.84
2.08
14.97
0.24

3.96
0.47
3.49
0.89
2.96
0.10
0.87
1.08
0.90
7.71
0.23

2.77
0.20
2.57
1.80
2.60
0.08
0.96
1.44
0.98
8.71
0.29

72.63
61.34
6.57
60.07

95.39
43.20
0.00
68.75

46.68
65.50
0.00
66.67

179.24
62.05
2.80
60.96

72.66
64.12
7.25
63.29

37.42
63.41
9.47
50.53

103.26
53.00
2.00
46.00

83.66
62.06
10.51
54.45

84.00
71.71
7.69
55.08

59.55
62.30
4.62
56.92

89.22

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��������������������

92.51

86.70

92.77

89.98

93.91

95.57

90.98

92.52

88.99

1.53
72.86

3.31
318.98

1.96
80.17

1.45
141.44

1.35
90.22

1.20
38.49

1.14
79.31

1.87
114.00

1.46
79.51

1.27
40.88

1.29
11.20
9.52
13.01
14.44
69.29
52.35
66.28

0.82
14.89
12.74
13.48
15.70
135.93
76.23
53.33

0.90
9.52
8.35
12.40
13.06
48.37
33.85
44.25

0.88
11.40
10.62
14.77
15.89
76.67
63.19
82.41

1.30
11.97
10.17
12.78
14.35
86.68
67.18
76.65

2.27
12.02
11.13
21.11
22.16
83.48
61.49
73.65

1.10
9.96
9.80
13.89
14.70
84.01
70.44
83.84

0.75
14.31
13.65
31.34
32.34
34.12
27.77
80.35

1.45
11.92
11.54
20.17
21.34
64.02
53.64
83.79

1.58
11.09
8.94
12.64
14.41
57.69
45.79
70.84

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

0
199
14

0
0
0

0
0
0

0
37
1

0
139
9

0
6
2

0
0
0

0
2
0

0
7
2

0
8
0

PRIOR FIRST THREE QUARTERS
(The way it was...)
Number of institutions������������������������������2013
��������������������������������������2011
������������������������������������� 2009

6,891
7,437
8,099

17
18
24

4
5
4

1,536
1,552
1,580

3,433
3,854
4,540

597
714
795

47
71
81

400
363
284

791
801
732

66
59
59

Total assets (in billions)����������������������������2013
��������������������������������������2011
������������������������������������� 2009

$14,603.6
13,811.9
13,226.0

$596.3
532.0
480.2

$3,729.4
3,665.3
3,183.4

$243.9
208.5
177.7

$4,773.7
4,170.5
5,183.9

$554.0
798.3
852.0

$149.3
98.8
95.8

$63.9
54.0
37.8

$137.9
136.4
102.7

$4,355.2
4,148.1
3,112.5

Return on assets (%)��������������������������������2013
��������������������������������������2011
������������������������������������� 2009

1.06
0.92
-0.11

3.26
3.62
-6.25

0.83
0.81
0.00

1.19
1.14
0.91

0.91
0.71
-0.23

0.98
0.60
0.47

1.28
1.75
0.22

1.74
1.80
0.64

0.87
0.92
0.79

1.10
0.89
0.62

Net charge-offs to loans & leases (%)�����2013
��������������������������������������2011
������������������������������������� 2009

0.72
1.61
2.38

3.21
5.58
9.93

1.03
2.07
2.90

0.11
0.36
0.52

0.44
1.21
1.77

0.37
0.90
1.26

0.77
1.78
2.64

0.61
0.48
0.81

0.32
0.50
0.46

0.51
1.30
2.31

Noncurrent assets plus
OREO to assets (%)������������������������������2013
��������������������������������������2011
������������������������������������� 2009

1.75
2.66
3.09

0.90
1.41
2.18

1.13
1.59
2.64

0.98
1.59
1.59

1.81
3.19
3.71

2.16
2.68
3.17

0.66
1.13
1.25

0.95
0.99
0.60

1.56
1.87
1.35

2.37
3.36
2.85

Equity capital ratio (%)�����������������������������2013
��������������������������������������2011
������������������������������������� 2009

11.11
11.30
10.76

14.89
15.79
22.08

8.80
8.81
8.45

11.01
11.50
11.32

11.81
11.93
10.96

11.40
10.61
9.30

9.64
9.86
10.87

13.71
15.50
17.58

11.34
11.68
11.84

11.77
12.37
11.26

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

FDIC Quarterly

8

2014, Volume 8, No. 4

Quarterly Banking Profile
TABLE IV-A. First Three Quarters 2014, All FDIC-Insured Institutions
Asset Size Distribution
FIRST THREE QUARTERS
All Insured
(The way it is...)
Institutions
Number of institutions reporting�����������������������������
6,589
Commercial banks�������������������������������������������
5,705
Savings institutions�����������������������������������������
884
Total assets (in billions)������������������������������������������ $15,349.2
Commercial banks�������������������������������������������
14,290.1
Savings institutions�����������������������������������������
1,059.1
Total deposits (in billions)���������������������������������������
11,596.6
Commercial banks�������������������������������������������
10,789.0
Savings institutions�����������������������������������������
807.6
Bank net income (in millions)���������������������������������
115,955
Commercial banks�������������������������������������������
107,048
Savings institutions�����������������������������������������
8,907
Performance Ratios (annualized, %)
Yield on earning assets������������������������������������������
Cost of funding earning assets������������������������������
Net interest margin������������������������������������������
Noninterest income to assets���������������������������������
Noninterest expense to assets�������������������������������
Loan and lease loss provision to assets����������������
Net operating income to assets�����������������������������
Pretax return on assets������������������������������������������
Return on assets�����������������������������������������������������
Return on equity�����������������������������������������������������
Net charge-offs to loans and leases����������������������
Loan and lease loss provision to
net charge-offs����������������������������������������������������
Efficiency ratio��������������������������������������������������������
% of unprofitable institutions����������������������������������
% of institutions with earnings gains����������������������

Geographic Regions*

Less Than
$100
$1 Billion
Greater
$100
Million to
to
Than
Million
$1 Billion $10 Billion $10 Billion New York
1,940
3,966
575
108
816
1,710
3,440
463
92
454
230
526
112
16
362
$114.2
$1,227.5
$1,531.4 $12,476.1
$3,045.0
100.9
1,040.1
1,240.1
11,909.0
2,582.0
13.3
187.4
291.3
567.1
463.0
96.1
1,021.5
1,192.4
9,286.6
2,253.1
85.7
872.6
977.0
8,853.7
1,916.8
10.4
148.9
215.4
432.9
336.3
717
8,956
12,183
94,099
21,193
636
7,753
10,400
88,259
18,926
81
1,203
1,783
5,840
2,267

Atlanta
823
744
79
$3,134.3
3,048.3
85.9
2,429.4
2,365.6
63.8
20,745
20,199
546

Chicago
1,427
1,190
237
$3,503.2
3,393.3
110.0
2,552.0
2,469.3
82.7
23,010
22,242
768

Kansas
City
1,614
1,545
69
$3,363.9
3,302.4
61.5
2,528.2
2,480.5
47.7
28,054
27,678
376

San
Dallas
Francisco
1,387
522
1,295
477
92
45
$884.9
$1,417.9
778.2
1,185.9
106.6
232.0
732.2
1,101.8
644.4
912.4
87.8
189.3
7,579
15,374
6,548
11,457
1,031
3,917

3.51
0.36
3.15
1.66
2.80
0.19
1.02
1.50
1.03
9.19
0.49

4.12
0.48
3.64
1.10
3.37
0.11
0.82
0.99
0.84
6.94
0.21

4.19
0.50
3.69
1.08
3.14
0.12
0.97
1.25
0.99
9.00
0.20

4.21
0.43
3.78
1.22
3.01
0.16
1.07
1.51
1.08
9.05
0.28

3.34
0.33
3.01
1.78
2.73
0.20
1.02
1.52
1.03
9.25
0.57

3.77
0.41
3.36
1.53
2.79
0.33
0.94
1.43
0.94
7.87
0.73

3.43
0.29
3.14
1.65
3.00
0.17
0.87
1.29
0.91
7.40
0.40

2.78
0.29
2.49
1.86
2.69
0.10
0.89
1.27
0.89
9.10
0.35

3.73
0.41
3.32
1.50
2.63
0.15
1.14
1.66
1.14
10.95
0.60

3.96
0.34
3.62
1.35
3.04
0.12
1.14
1.51
1.15
10.43
0.21

4.09
0.44
3.65
2.07
2.86
0.30
1.50
2.29
1.50
11.84
0.48

72.63
61.34
6.57
60.07

92.30
75.60
12.06
55.41

95.62
69.72
4.66
61.47

85.45
63.11
2.26
65.57

70.52
60.14
0.93
62.96

85.60
58.78
7.97
57.35

72.18
67.30
10.33
62.09

64.53
65.77
7.92
54.94

48.35
57.83
3.90
62.64

92.33
64.72
4.40
63.45

103.93
52.05
8.81
58.24

89.22

91.83

92.43

91.64

88.59

89.40

88.25

88.53

88.67

91.39

92.68

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

1.53
72.86

1.59
95.48

1.50
98.65

1.42
82.63

1.56
69.25

1.56
103.15

1.44
53.80

1.65
71.45

1.65
61.50

1.38
92.22

1.35
141.12

1.29
11.20
9.52
13.01
14.44
69.29
52.35
66.28

1.57
12.35
12.05
19.65
20.74
67.23
56.59
84.17

1.54
11.19
10.81
15.83
16.98
76.72
63.84
83.15

1.50
11.98
10.60
14.60
15.73
84.62
65.89
77.49

1.24
11.10
9.23
12.49
13.99
66.52
49.52
63.08

0.92
12.02
9.85
13.74
15.46
71.96
53.25
65.47

1.71
12.11
9.46
12.74
14.41
71.48
55.40
74.69

1.19
9.93
8.78
12.06
13.10
61.00
44.44
61.25

1.61
10.31
9.07
12.35
13.88
67.92
51.05
55.81

1.28
11.15
10.00
14.00
15.20
74.63
61.75
82.40

0.69
12.72
11.48
15.26
16.44
77.76
60.42
76.60

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

0
199
14

0
69
8

0
110
6

0
18
0

0
2
0

0
18
2

0
38
4

0
40
5

0
43
0

0
40
2

0
20
1

PRIOR FIRST THREE QUARTERS
(The way it was…)
Number of institutions������������������������������������2013
�������������������������������������������� 2011
������������������������������������������� 2009

6,891
7,437
8,099

2,116
2,491
2,915

4,107
4,279
4,493

561
561
579

107
106
112

854
924
989

875
974
1,140

1,480
1,563
1,666

1,675
1,792
1,895

1,454
1,555
1,672

553
629
737

Total assets (in billions)����������������������������������2013
�������������������������������������������� 2011
������������������������������������������� 2009

$14,603.6
13,811.9
13,226.0

$123.5
142.9
160.5

$1,245.5
1,273.4
1,345.7

$1,453.1
1,425.0
1,497.5

$11,781.5
10,970.6
10,222.3

$2,876.9
2,842.2
2,481.0

$2,981.8
2,954.3
3,449.9

$3,398.6
3,169.9
3,106.2

$3,166.6
2,901.9
1,077.7

$864.0
801.8
755.4

$1,315.8
1,141.7
2,355.8

Return on assets (%)��������������������������������������2013
�������������������������������������������� 2011
������������������������������������������� 2009

1.06
0.92
-0.11

0.76
0.54
0.19

0.92
0.59
0.05

1.18
0.85
-0.37

1.06
0.97
-0.10

0.82
1.07
-1.23

1.03
0.61
0.10

0.91
0.81
0.22

1.26
0.98
0.73

1.12
0.97
0.35

1.54
1.47
-0.23

Net charge-offs to loans & leases (%)�����������2013
�������������������������������������������� 2011
������������������������������������������� 2009

0.72
1.61
2.38

0.30
0.58
0.78

0.35
0.85
1.01

0.38
1.17
1.83

0.82
1.81
2.74

0.97
1.97
2.73

0.69
1.73
2.18

0.50
1.19
2.15

0.91
1.94
2.40

0.33
0.87
1.20

0.58
1.18
3.10

Noncurrent assets plus
OREO to assets (%)������������������������������������2013
�������������������������������������������� 2011
������������������������������������������� 2009

1.75
2.66
3.09

1.83
2.39
2.13

1.98
3.18
3.14

1.96
3.26
3.52

1.69
2.52
3.03

1.20
1.79
1.92

2.48
3.81
3.52

1.54
2.40
3.19

2.08
2.77
3.45

1.72
2.75
2.65

1.03
2.17
3.51

Equity capital ratio (%)�����������������������������������2013
�������������������������������������������� 2011
������������������������������������������� 2009

11.11
11.30
10.76

11.82
11.98
12.41

10.83
10.80
10.11

11.76
11.85
10.75

11.05
11.27
10.82

12.00
12.55
12.27

12.30
12.18
11.57

9.13
8.62
8.68

10.64
11.18
10.85

10.87
11.15
10.41

12.85
13.71
10.78

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

FDIC Quarterly

9

2014, Volume 8, No. 4

TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Concentration Groups*
September 30, 2014

All Insured
Institutions

Credit
Card
Banks

International Agricultural Commercial Mortgage
Banks
Banks
Lenders
Lenders

Consumer
Lenders

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

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

1.01
0.50
0.36
0.21
0.68
1.74
0.26
1.33
1.19
1.46
0.19
0.81

0.03
0.00
0.00
0.00
0.67
0.02
0.84
1.18
1.18
1.23
0.32
1.14

1.54
0.54
0.19
0.08
0.99
2.54
0.33
1.35
1.22
1.58
0.22
0.95

0.65
0.82
0.61
0.18
0.36
1.21
0.90
1.44
1.15
1.47
0.33
0.63

0.63
0.46
0.36
0.24
0.56
1.13
0.25
1.12
1.20
1.11
0.23
0.55

1.00
0.51
0.50
0.28
0.65
1.11
0.56
1.06
1.57
1.01
0.10
0.94

0.77
0.44
2.20
0.90
0.49
0.72
0.10
0.78
0.69
0.80
0.24
0.73

1.34
0.92
0.96
1.34
0.48
1.86
0.98
1.55
1.43
1.56
0.62
1.27

1.27
1.10
0.83
0.62
0.72
1.61
0.89
1.84
1.30
1.85
0.40
1.23

1.55
0.53
0.27
0.17
0.70
2.44
0.15
1.86
1.47
1.94
0.11
1.06

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

3.57
2.55
1.48
0.50
2.62
5.93
0.55
0.93
1.10
0.76
0.23
2.11

0.55
0.00
3.30
0.00
0.00
0.47
0.74
1.07
1.09
0.73
0.27
1.04

5.65
1.30
0.96
0.35
3.71
9.53
0.52
1.07
1.08
1.05
0.26
2.44

1.24
2.04
1.79
0.63
1.07
1.24
1.34
0.55
0.26
0.57
0.41
1.02

2.07
2.56
1.41
0.54
1.43
3.31
0.63
0.80
1.16
0.75
0.29
1.50

3.44
2.02
1.72
0.83
2.02
3.83
1.11
0.57
1.20
0.50
0.14
3.12

3.78
28.15
11.17
2.07
2.72
2.98
0.60
0.77
1.16
0.65
0.09
1.44

1.91
3.45
1.79
1.40
0.78
1.89
1.50
0.63
0.68
0.63
0.37
1.64

2.07
3.87
2.32
1.41
0.68
1.97
1.70
0.98
0.57
0.99
0.45
1.84

6.01
2.47
1.66
0.44
3.62
8.92
0.36
0.78
1.23
0.69
0.14
3.11

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

0.21
0.03
0.10
0.02
0.60
0.21
0.23
1.96
3.18
0.75
0.09
0.49

0.04
0.00
0.00
0.00
0.00
0.04
2.40
2.92
2.98
1.39
0.00
2.86

0.33
-0.23
-0.03
-0.01
0.67
0.32
0.16
2.84
3.73
1.30
0.09
0.73

0.06
0.00
0.08
0.08
0.26
0.10
0.21
0.37
0.77
0.34
0.00
0.09

0.20
0.16
0.14
0.04
0.41
0.28
0.21
0.93
3.56
0.54
0.16
0.26

0.18
0.23
0.16
0.10
0.58
0.15
0.29
0.93
3.70
0.62
0.07
0.19

0.34
0.15
-0.04
-0.04
0.96
0.16
0.09
0.77
2.08
0.36
0.10
0.62

0.12
0.30
0.12
-0.85
0.05
0.15
0.44
0.47
1.76
0.35
0.82
0.24

0.18
0.35
0.21
0.06
0.18
0.17
0.45
0.41
1.43
0.39
0.00
0.23

0.18
-0.55
-0.02
-0.03
0.79
0.12
0.11
1.25
3.29
0.82
0.04
0.29

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)��������������

$4,136.1
230.6
1,133.2
289.0
496.2
1,838.2
1,674.1
1,382.4
683.0
699.4
969.4
8,162.0

$0.3
0.0
0.0
0.0
0.0
0.3
37.5
435.8
419.2
16.7
3.7
477.3

$465.7
6.2
34.5
51.2
80.6
234.5
270.9
248.1
155.1
93.0
290.4
1,275.1

$97.0
5.2
26.3
2.8
1.8
25.0
19.9
6.5
0.5
6.0
39.6
163.0

$2,159.9
171.7
822.8
192.2
210.4
727.4
826.8
287.8
37.0
250.8
258.8
3,533.3

$242.4
4.7
20.0
5.5
14.0
197.4
6.6
6.4
0.6
5.8
15.7
271.1

$27.5
0.4
1.8
0.3
6.4
18.5
6.5
83.0
19.2
63.8
2.4
119.4

$12.2
0.9
4.3
0.3
0.4
5.6
2.2
1.7
0.1
1.6
1.0
17.1

$53.0
3.0
12.9
1.3
2.1
29.7
6.1
6.2
0.1
6.1
4.6
70.0

$1,078.1
38.6
210.5
35.4
180.4
599.9
497.7
306.9
51.3
255.6
353.0
2,235.7

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

24,890.5
6,891.5
5,653.2
506.6
6,098.7
280.5
5,410.8

0.2
0.0
0.0
0.0
0.2
0.0
0.0

1,278.0
3.0
62.0
1.0
571.0
0.0
594.0

542.3
195.6
189.0
21.9
93.0
42.6
0.3

14,204.1
5,450.9
4,327.8
402.7
3,315.1
209.6
497.7

1,358.6
162.9
101.0
10.0
400.7
1.6
682.2

124.8
16.0
34.6
0.1
66.1
0.0
8.1

171.6
69.6
56.3
7.3
35.5
2.9
0.0

552.6
168.2
174.8
9.3
185.6
14.8
0.1

6,658.2
825.4
707.6
54.2
1,431.6
9.0
3,628.5

* Asset Concentration Group Definitions (Groups are hierarchical and mutually exclusive):
Credit-card Lenders - Institutions whose credit-card loans plus securitized receivables exceed 50 percent of total assets plus securitized receivables.
International Banks - Banks with assets greater than $10 billion and more than 25 percent of total assets in foreign offices.
Agricultural Banks - Banks whose agricultural production loans plus real estate loans secured by farmland exceed 25 percent of the total loans and leases.
Commercial Lenders - Institutions whose commercial and industrial loans, plus real estate construction and development loans, plus loans secured by commercial real estate properties
exceed 25 percent of total assets.
Mortgage Lenders - Institutions whose residential mortgage loans, plus mortgage-backed securities, exceed 50 percent of total assets.
Consumer Lenders - Institutions whose residential mortgage loans, plus credit-card loans, plus other loans to individuals, exceed 50 percent of total assets.
Other Specialized < $1 Billion - Institutions with assets less than $1 billion, whose loans and leases are less than 40 percent of total assets.
All Other < $1 billion - Institutions with assets less than $1 billion that do not meet any of the definitions above, they have significant lending activity with no identified asset concentrations.
All Other > $1 billion - Institutions with assets greater than $1 billion that do not meet any of the definitions above, they have significant lending activity with no identified asset
concentrations.
** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.

FDIC Quarterly

10

2014, Volume 8, No. 4

Quarterly Banking Profile
TABLE V-A. Loan Performance, All FDIC-Insured Institutions
Asset Size Distribution
September 30, 2014

Geographic Regions*

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

Atlanta

Chicago

Kansas
City

Dallas

San
Francisco

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

1.01
0.50
0.36
0.21
0.68
1.74
0.26
1.33
1.19
1.46
0.19
0.81

1.29
1.12
1.08
0.70
0.61
1.77
1.23
1.85
2.94
1.84
0.40
1.20

0.71
0.60
0.54
0.43
0.54
1.05
0.67
1.68
1.60
1.68
0.31
0.73

0.67
0.53
0.35
0.18
0.51
1.24
0.36
1.45
1.91
1.25
0.26
0.65

1.16
0.42
0.27
0.17
0.71
1.95
0.21
1.31
1.17
1.47
0.18
0.84

0.67
0.56
0.39
0.22
0.50
1.08
0.24
1.09
0.96
1.44
0.10
0.65

1.19
0.49
0.34
0.21
0.75
1.94
0.15
2.02
1.84
2.11
0.12
0.95

1.06
0.44
0.42
0.18
0.82
1.76
0.36
1.20
0.98
1.27
0.38
0.82

1.45
0.58
0.32
0.19
0.71
2.49
0.22
1.41
1.27
1.57
0.09
0.98

0.87
0.54
0.41
0.22
0.46
1.70
0.44
0.90
0.67
1.02
0.26
0.74

0.45
0.23
0.23
0.23
0.41
0.75
0.27
1.06
1.46
0.73
0.31
0.53

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

3.57
2.55
1.48
0.50
2.62
5.93
0.55
0.93
1.10
0.76
0.23
2.11

1.87
3.23
2.25
1.79
1.00
1.86
1.92
0.87
0.96
0.86
0.65
1.66

1.66
3.08
1.72
1.12
0.83
1.58
1.34
1.10
1.01
1.11
0.46
1.52

2.06
2.76
1.38
0.57
1.06
3.30
0.98
0.80
1.67
0.40
0.37
1.72

4.43
2.19
1.42
0.37
2.92
7.19
0.43
0.93
1.08
0.77
0.20
2.25

2.26
3.17
1.75
0.32
1.90
3.20
0.70
0.91
0.94
0.83
0.33
1.51

4.69
3.46
1.47
0.58
3.41
7.27
0.42
1.03
1.46
0.82
0.20
2.67

4.06
2.50
1.75
0.68
2.72
6.79
0.57
0.82
0.98
0.77
0.13
2.31

4.97
1.99
1.49
0.60
2.77
8.43
0.55
1.06
1.13
0.98
0.26
2.68

2.03
1.64
1.16
0.84
1.77
3.45
0.72
0.70
1.15
0.47
0.28
1.50

1.35
2.06
1.02
0.41
1.00
1.80
0.47
0.80
1.30
0.38
0.26
0.96

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

0.21
0.03
0.10
0.02
0.60
0.21
0.23
1.96
3.18
0.75
0.09
0.49

0.17
0.30
0.21
0.11
0.18
0.19
0.36
0.50
3.22
0.47
0.00
0.21

0.15
0.19
0.15
0.15
0.22
0.15
0.34
0.69
3.70
0.48
0.15
0.20

0.16
0.03
0.13
0.06
0.27
0.24
0.26
1.58
3.46
0.72
0.17
0.28

0.23
-0.05
0.07
-0.02
0.67
0.21
0.21
2.03
3.17
0.77
0.08
0.57

0.22
0.40
0.14
0.00
0.36
0.29
0.36
2.28
2.81
0.81
0.11
0.73

0.25
0.20
0.15
0.04
0.82
0.16
0.15
1.64
3.44
0.76
0.05
0.40

0.24
0.08
0.16
0.04
0.59
0.23
0.23
1.25
3.08
0.65
0.12
0.35

0.24
-0.52
0.00
-0.02
0.71
0.29
0.14
2.64
3.81
1.13
0.06
0.60

0.10
0.01
0.07
0.08
0.51
0.11
0.15
1.06
1.97
0.59
0.18
0.21

0.03
-0.35
0.04
0.01
0.14
0.05
0.37
1.70
3.27
0.39
0.09
0.48

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

$4,136.1
230.6
1,133.2
289.0
496.2
1,838.2
1,674.1
1,382.4
683.0
699.4
969.4
8,162.0

$45.3
2.7
12.2
1.4
1.2
20.5
7.8
4.1
0.0
4.1
8.4
65.7

$609.1
51.7
239.4
31.8
27.5
216.7
104.1
35.7
2.3
33.4
47.1
796.0

$737.7
59.7
294.0
65.1
47.2
254.1
161.8
72.8
23.0
49.8
51.6
1,024.0

$2,743.9
116.5
587.6
190.7
420.3
1,346.9
1,400.4
1,269.8
657.7
612.1
862.3
6,276.4

$838.0
43.4
259.2
101.6
91.0
338.7
256.6
392.1
285.7
106.4
160.8
1,647.5

$901.7
49.7
232.8
35.0
129.7
444.9
401.8
248.8
81.3
167.5
209.5
1,761.9

$804.1
36.7
185.6
77.6
124.8
358.9
345.3
202.3
49.5
152.8
231.3
1,583.0

$826.5
34.5
165.5
25.4
102.7
407.6
354.3
296.9
162.8
134.1
268.8
1,746.5

$341.5
45.3
133.9
12.3
19.3
117.0
118.3
55.3
18.4
36.9
39.2
554.2

$424.3
20.9
156.3
37.1
28.7
171.2
197.8
187.0
85.3
101.7
59.8
868.9

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

24,890.5
6,891.5
5,653.2
506.6
6,098.7
280.5
5,410.8

697.1
233.8
233.1
25.7
187.2
17.3
0.1

6,620.9
3,007.8
2,167.4
167.7
1,137.3
139.1
1.6

5,328.3
2,038.8
1,633.2
112.5
1,084.5
100.7
358.6

12,244.2
1,611.1
1,619.4
200.8
3,689.6
23.4
5,050.5

3,131.5
685.1
826.2
179.1
1,167.9
19.4
253.8

6,369.4
1,990.1
1,220.2
61.6
1,601.7
67.8
1,428.0

4,588.0
945.5
1,195.5
98.6
1,405.2
56.1
887.2

6,381.5
1,453.7
1,021.7
84.9
978.0
42.2
2,751.9

2,962.0
1,275.0
940.0
56.1
548.8
74.0
68.1

1,458.1
542.1
449.6
26.2
397.1
20.9
21.8

* Regions:
New York - Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Puerto Rico, Rhode Island, Vermont,
U.S. Virgin Islands
Atlanta - Alabama, Florida, Georgia, North Carolina, South Carolina, Virginia, West Virginia
Chicago - Illinois, Indiana, Kentucky, Michigan, Ohio, Wisconsin
Kansas City - Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota
Dallas - Arkansas, Colorado, Louisiana, Mississippi, New Mexico, Oklahoma, Tennessee, Texas
San Francisco - Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Pacific Islands, Utah, Washington, Wyoming
** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.

FDIC Quarterly

11

2014, Volume 8, No. 4

Table VI-A. Derivatives, All FDIC-Insured Call Report Filers
Asset Size Distribution
3rd
Quarter
2014

2nd
Quarter
2014

1st
Quarter
2014

4th
Quarter
2013

3rd
Quarter
2013

(dollar figures in millions;
notional amounts unless otherwise indicated)
ALL DERIVATIVE HOLDERS
Number of institutions reporting derivatives�����������������
1,391
1,407
1,399
1,389
1,424
Total assets of institutions reporting derivatives���������� $13,713,227 $13,523,258 $13,250,724 $13,073,466 $12,913,916
Total deposits of institutions reporting derivatives�������
10,291,118 10,169,544
9,980,762
9,855,694
9,682,692
Total derivatives������������������������������������������������������������� 242,940,302 239,190,963 231,800,037 237,047,901 241,599,691

% Change
Less
$100
$1 Billion
13Q3Than $100 Million to
to $10
14Q3
Million
$1 Billion
Billion

Greater
Than
$10 Billion

-2.3
6.2
6.3
0.6

71
$5,108
4,306
248

833
386
101
$344,375 $1,121,559 $12,242,185
283,395
888,637
9,114,781
19,685
94,423 242,825,947

Derivative Contracts by Underlying Risk Exposure
Interest rate�������������������������������������������������������������������� 190,894,367 191,551,667 184,416,428 193,079,712 194,272,564
Foreign exchange*�������������������������������������������������������� 37,993,284 33,394,789 32,803,419 29,508,040
31,016,109
Equity�����������������������������������������������������������������������������
2,317,269
2,198,432
2,152,493
2,060,642
2,178,167
Commodity & other (excluding credit derivatives)��������
1,327,011
1,214,397
1,263,060
1,208,874
1,339,676
Credit������������������������������������������������������������������������������ 10,408,372 10,831,679
11,164,636
11,190,633
12,793,174
Total�������������������������������������������������������������������������������� 242,940,302 239,190,963 231,800,037 237,047,901 241,599,691

-1.7
22.5
6.4
-0.9
-18.6
0.6

247
0
0
1
0
248

17,382
2,139
73
1
91
19,685

87,062 190,789,676
6,303
37,984,842
381
2,316,815
156
1,326,853
520
10,407,762
94,423 242,825,947

Derivative Contracts by Transaction Type
Swaps���������������������������������������������������������������������������� 148,328,645 146,510,078 141,280,789 152,465,179 151,915,064
Futures & forwards�������������������������������������������������������� 45,058,646 45,263,675
42,478,719 40,026,988
40,136,119
Purchased options���������������������������������������������������������
17,991,014 17,296,921
17,199,263
16,122,514 16,902,690
Written options��������������������������������������������������������������� 17,560,650 16,877,396 16,931,243 16,215,033 17,098,677
Total�������������������������������������������������������������������������������� 228,938,955 225,948,070 217,890,014 224,829,713 226,052,549

-2.4
12.3
6.4
2.7
1.3

44
68
20
115
248

7,223
6,900
761
4,700
19,584

50,254 148,271,124
22,592
45,029,086
5,515
17,984,719
15,364
17,540,470
93,725 228,825,398

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�����������������������������������

65,126
13,334
-657
219
67,082
-62,731

72,249
4,729
412
965
92,998
-88,369

72,732
5,563
1,548
-893
80,869
-77,438

71,270
5,991
32
1,350
74,838
-71,220

64,832
-10,390
-1,928
1,181
27,220
-22,646

0.5
N/M
N/M
-81.5
146.4
N/M

1
0
0
0
0
0

36
0
3
0
0
0

118
14
4
-5
0
-25

64,970
13,320
-664
224
67,083
-62,706

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

79,984,475
40,334,367
22,393,347
22,803,490
2,446,736
1,021,146
763,470
323,010
77,484
391,671
217,997
19,107

81,212,198
38,531,976
24,201,834
20,746,687
2,420,184
1,016,489
698,674
292,130
81,116
360,565
150,937
18,082

77,787,391
37,365,369
24,024,347
20,017,155
2,297,506
974,365
673,720
305,141
89,804
379,469
140,984
18,960

77,758,364
44,157,011
24,628,239
18,289,804
2,324,853
1,029,287
645,046
291,190
135,907
338,091
163,812
5,903

91,687,405
32,673,865
21,497,254
18,911,771
2,869,454
1,503,977
694,983
309,578
88,294
375,292
175,069
16,142

-12.8
23.4
4.2
20.6
-14.7
-32.1
9.9
4.3
-12.2
4.4
24.5
18.4

67
36
28
0
0
0
0
0
0
0
0
0

4,602
3,493
3,959
1,632
0
0
4
11
21
0
0
0

16,664
25,535
22,973
2,966
77
0
54
114
26
65
4
0

79,963,143
40,305,303
22,366,387
22,798,892
2,446,659
1,021,146
763,412
322,886
77,436
391,606
217,993
19,107

26.0
53.2

23.5
55.1

23.5
56.2

26.1
58.1

27.1
61.9

0.1
0.1

0.4
0.3

0.5
0.5

29.5
60.4

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

79.2

78.6

79.7

84.3

88.9

0.2

0.7

1.0

89.9

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

83.0

69.0

13.0

264.0

181.0

-54.1

0.0

0.0

0.0

83.0

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

245
11,015,566
8,262,986

247
10,889,657
8,185,857

243
10,638,660
7,997,380

252
10,559,491
7,964,587

241
10,400,363
7,786,249

1.7
5.9
6.1

9
633
535

88
40,473
33,721

85
297,413
233,992

63
10,677,047
7,994,738

Derivative Contracts by Underlying Risk Exposure
Interest rate�������������������������������������������������������������������� 187,909,413 188,491,623 181,280,483 189,137,001 190,492,372
Foreign exchange���������������������������������������������������������� 33,675,874 30,164,255 29,208,497 27,636,697 27,457,246
Equity�����������������������������������������������������������������������������
2,300,741
2,182,209
2,136,529
2,043,918
2,162,663
Commodity & other��������������������������������������������������������
1,320,794
1,206,811
1,256,235
1,200,547
1,330,681
Total�������������������������������������������������������������������������������� 225,206,822 222,044,898 213,881,742 220,018,163 221,442,962

-1.4
22.6
6.4
-0.7
1.7

80
0
0
1
80

1,951
0
0
0
1,951

22,032
4,902
45
44
27,024

187,885,351
33,670,971
2,300,695
1,320,749
225,177,767

N/M
732.0
181.0
36.7
25.7

0
0
0
0
0

0
0
0
0
0

19
3
-8
-1
14

-846
4,889
659
958
5,662

0.0
0.0

0.1
0.3

0.4
2.6

4.9
24.2

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

-826
4,892
652
958
5,676

2,878
2,026
722
783
6,409

2,010
2,137
608
1,427
6,183

357
1,550
490
509
2,906

2,995
588
232
701
4,517

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

4.8
23.7

5.4
24.5

5.4
26.9

2.5
11.3

4.0
20.9

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

1,269
13,420,481
10,060,899

1,288
13,229,907
9,938,964

1,282
12,945,001
9,738,920

1,253
12,763,131
9,611,265

1,287
12,619,286
9,449,509

-1.4
6.3
6.5

63
4,554
3,841

759
313,564
257,738

352
1,017,375
807,840

95
12,084,988
8,991,480

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

2,984,954
724,435
16,528
6,216
3,732,133

3,060,044
819,319
16,223
7,586
3,903,171

3,135,945
849,536
15,965
6,825
4,008,271

3,942,711
843,789
16,724
8,327
4,811,550

3,780,192
804,895
15,504
8,995
4,609,587

-21
-10
6.6
-30.9
-19.0

168
0
0
0
168

15,431
2,129
73
1
17,633

65,031
1,223
336
112
66,701

2,904,325
721,083
16,119
6,104
3,647,632

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

2014, Volume 8, No. 4

Quarterly Banking Profile
TABLE VII-A. Servicing, Securitization, and Asset Sales Activities (All FDIC-Insured Call Report Filers)
Asset Size Distribution

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

3rd
Quarter
2014

Number of institutions reporting securitization activities�����������������������������������������
75
Outstanding Principal Balance by Asset Type
1-4 family residential loans�������������������������������������������������������������������������������� $845,272
Home equity loans���������������������������������������������������������������������������������������������
38
Credit card receivables�������������������������������������������������������������������������������������
16,782
Auto loans����������������������������������������������������������������������������������������������������������
4,198
Other consumer loans���������������������������������������������������������������������������������������
6,425
Commercial and industrial loans�����������������������������������������������������������������������
13
All other loans, leases, and other assets����������������������������������������������������������
95,102
Total securitized and sold������������������������������������������������������������������������������������������
967,830
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���
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

2nd
Quarter
2014

1st
Quarter
2014

4th
Quarter
2013

3rd
% Change Less Than
$100
$1 Billion Greater
Quarter
13Q3$100
Million to
to $10
Than $10
2013
14Q3
Million
$1 Billion Billion
Billion

73

76

83

82

-8.5

1

24

$843,776
39
16,692
4,312
4,945
1,217
94,757
965,737

$598,462
41
16,349
4,735
4,462
1,881
96,071
722,001

$610,275
42
19,405
4,676
4,607
1,987
101,456
742,448

$625,642
44
17,115
4,708
4,790
3,945
104,890
761,133

35.1
-13.6
-1.9
-10.8
34.1
-99.7
-9.3
27.2

$17.0
0
0
0
0
0
0
17

$2,172.0
0
89
1,052
2
8
3,561
6,884

17

33

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

2,908
0
1,450
0
192
25
1,416
5,991
17

2,912
0
1,455
5
174
38
1,308
5,892
120

2,809
0
603
0
164
27
1,633
5,236
121

2,927
0
554
0
168
20
1,729
5,397
121

-4.1
0.0
156.0
0.0
11.9
-100.0
-34.7
2.7
-86.0

0
0
0
0
0
0
0
0
0

5
0
30
0
0
0
1
37
0

52
0
0
0
0
0
0
52
0

2,749
0
1,388
0
188
0
1,128
5,452
17

3.9
8.0
0.8
0.7
4.8
0.0
0.4
3.5

3.5
9.1
0.8
0.7
5.5
0.0
0.4
3.2

3.3
8.8
0.9
0.6
5.2
0.0
0.3
2.9

4.3
10.4
0.8
1.0
5.6
0.0
0.8
3.7

4.1
10.7
1.0
0.6
5.4
0.0
1.1
3.6

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

1.4
0.0
1.6
0.0
0.0
0.0
0.9
0.9

5.1
0.0
0.0
0.0
0.0
0.0
0.0
3.9

3.9
8.0
0.8
1.0
4.8
0.0
0.4
3.5

2.2
42.0
0.5
0.1
5.2
2.4
6.5
2.6

2.3
40.3
0.6
0.1
6.3
0.0
9.2
2.9

3.3
37.8
0.7
0.1
6.7
0.0
8.7
3.9

3.4
36.5
0.6
0.1
7.3
0.0
9.2
4.1

3.7
34.4
0.6
0.0
7.1
0.0
8.9
4.3

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

1.7
0.0
1.5
0.0
0.0
3.8
0.9
1.0

6.0
0.0
0.0
0.0
0.0
0.0
1.2
4.8

2.2
42.0
0.5
0.1
5.2
0.0
7.0
2.6

0.3
0.1
1.5
0.1
0.6
0.0
0.6
0.3

0.2
0.1
1.2
0.1
0.3
0.0
0.9
0.3

0.1
-0.1
0.6
0.0
0.2
0.0
0.7
0.2

0.9
0.2
2.2
0.2
0.9
0.0
0.9
0.9

0.7
0.3
1.9
0.1
0.7
0.0
0.6
0.7

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.2
0.0
5.7
0.0
0.0
0.0
0.0
0.1

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.3
0.1
1.5
0.1
0.6
0.0
0.7
0.3

0
12,198
3

0
12,905
2

0
13,116
2

0
12,850
3

0
13,451
3

0.0
-9.3
0.0

0
0
0

0
313
0

0
0
3

0
11,886
0

0
0
0

0
0
0

0
0
48

0
0
52

0
0
0

0.0
0.0
0.0

0
0
0

0
0
0

0
0
0

0
0
0

$15,174.0 $827,909.0
0
38
0
16,693
0
3,146
0
6,423
3
2
4,939
86,602
20,116
940,813

Number of institutions reporting asset sales������������������������������������������������������������
Outstanding Principal Balance by Asset Type
1-4 family residential loans��������������������������������������������������������������������������������
Home equity, credit card receivables, auto, and other consumer loans���������
Commercial and industrial loans�����������������������������������������������������������������������
All other loans, leases, and other assets����������������������������������������������������������
Total sold and not securitized�����������������������������������������������������������������������������������

1,104

1,101

1,088

1,084

1,066

3.6

141

739

175

49

41,064
709
52
66,271
108,096

42,240
727
53
65,112
108,131

43,720
755
69
65,974
110,518

46,519
776
62
67,794
115,150

48,349
802
64
62,143
111,358

-15.1
-11.6
-18.8
6.6
-2.9

1,632
0
0
1
1,633

13,915
2
13
96
14,027

9,054
5
38
184
9,281

16,462
702
0
65,989
83,154

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

9,853
140
23
17,233
27,249

9,646
141
24
16,849
26,660

9,573
155
33
16,970
26,732

10,756
160
27
17,058
28,002

11,607
156
29
15,316
27,109

-15.1
-10.3
-20.7
12.5
0.5

108
0
0
1
109

2,193
2
13
16
2,224

3,204
3
9
55
3,271

4,348
136
0
17,161
21,645

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

132
41,590

134
42,375

138
42,058

148
44,707

154
44,848

-14.3
-7.3

12
10

72
181

29
299

19
41,100

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

918

1,122

1,017

981

923

-0.5

0

0

0

917
3,976,480

Other
Assets serviced for others*��������������������������������������������������������������������������������������� 4,412,810 4,459,026 4,556,249 4,712,533 4,773,337
Asset-backed commercial paper conduits
Credit exposure to conduits sponsored by institutions and others������������������
10,189
12,129
12,110
12,317
13,049
Unused liquidity commitments to conduits sponsored by institutions
27,948
28,274
30,515
31,113
40,363
	  and others�������������������������������������������������������������������������������������������������������
Net servicing income (for the quarter)����������������������������������������������������������������������
2,885
2,771
2,142
4,627
3,182
Net securitization income (for the quarter)���������������������������������������������������������������
384
318
285
377
352
Total credit exposure to Tier 1 capital (%)**�������������������������������������������������������������
5.3
5.4
5.4
5.8
5.9

-7.6

5,627

135,185

295,517

-21.9

5

0

4

10,181

-30.8
-9.3
9.1

0
8
0
0.9

0
189
15
1.9

708
184
5
2.3

27,240
2,504
364
6.2

* 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

2014, Volume 8, No. 4

Quarterly Banking Profile
COMMUNITY BANK PERFORMANCE
Net Income of $4.9 Billion Improved 11 Percent From Third Quarter 2013
Net Interest Income and Noninterest Income Increased
Loan Balances Increased, Outpacing Industry Growth
Noncurrent Loan Rate Improved to Pre-Crisis Level

■
■
■
■

Earnings Improved From a Year Ago, Outpacing
Industry Growth

More Than 70 Percent of Community Banks
Increased Net Interest Income

Improved net operating revenue (the sum of net interest income and total noninterest income), coupled with
lower provision expenses, increased community banks
net income of $4.9 billion, up $470.7 million (10.7
percent) from third quarter 2013.1 The percentage
increase in earnings at community banks was higher
than the 7.6 percent increase for the industry. Almost
two out of every three community banks (63 percent)
reported a year-over-year increase, while 6.6 percent of
community banks were unprofitable during third quarter 2014, the lowest number of banks with a quarterly
loss since second quarter 2006. The pretax return on
assets (ROA) was 1.25 percent, up 2 basis points from
the previous quarter and 11 basis points from the year
before—the highest level since third quarter 2007.2

Community banks reported net interest income of $17
billion during the quarter, up $1 billion (6.5 percent)
from third quarter 2013—outperforming the industry
(3.1 percent). Close to 33 percent of the industry’s
annual growth in net interest income (up $3.2 billion)
came from community banks. The net interest margin
(NIM) was 3.65 percent at community banks, up 2 basis
points from third quarter 2013, as average funding costs
declined more rapidly than average asset yields. For the
past five out of six quarters, NIM at community banks
increased, while it declined or remained flat for the
industry. Community banks posted a NIM 51 basis
points above the industry average.

Higher Gains on Loan Sales Increased
Noninterest Income

Prior-period dollar amounts used for comparisons are mergeradjusted, meaning the same institutions identified as community
banks in the current quarter are used to determine dollar amounts in
previous quarters, after taking into account acquisitions. Performance
ratios are not merger-adjusted.
2
Pretax ROA is used for comparison because C corporations are taxed
at the bank level, while S corporations pass tax obligations to their
shareholders.

Noninterest income totaled $4.5 billion in third quarter
2014, up $63 million (1.4 percent) from third quarter
2013 as revenue from loan sales—including mortgage
sales—increased by $58.4 million (7 percent) from the
year-ago quarter. All other noninterest income—which
accounts for almost 40 percent of total noninterest
income at community banks—was $1.7 billion during
the quarter, up $26.6 million (1.6 percent) from third

Chart 1

Chart 2

1

Net Interest Margin

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

Percent

Positive Factor
Negative Factor

Billions of Dollars
$2.0

4.0

1.04

$1.0

Community Banks
All Insured Institutions

0.55

0.47

0.07

0.06

$0.0

0.33

3.63

-0.18

3.65

3.5

-$1.0
-$2.0

Net
Income

Net
Interest
Income

+11%

+7%

Loan Loss Noninterest Noninterest
Provisions Income
Expense

-24%

+1%

+4%

Realized
Gains on
Securities

Income
Taxes

+183%

+30%

3.26
3.0
2006

Source: FDIC.

FDIC Quarterly

3.14
2007

2008

2009

2010

2011

2012

2013

2014

Source: FDIC.

15

2014, Volume 8, No. 4

quarter 2013.3 More than half of community banks
(51.7 percent) increased noninterest income from third
quarter 2013. However, the industry experienced a
higher rate increase (9.6 percent).

than the industry, which grew less than 1 percent. All
major loan categories increased from the previous quarter, led by nonfarm nonresidential loans (up $6.1
billion, or 1.6 percent), 1-to-4 family (up $4 billion, or
1.1 percent), construction and development (up $3.3
billion, or 4.2 percent), and commercial and industrial
loans (up $2.4 billion, or 1.3 percent). Year-over-year
loan growth at community banks (8 percent) outpaced
the industry (4.6 percent). Almost 43 percent of the
yearly increase at community banks was led by nonfarm
nonresidential (up $24.1 billion, or 6.5 percent) and
commercial and industrial loans (up $18.1 billion, or
10.8 percent). Despite declines in 1-to-4 family loans
and home equity lines of credit for the industry,
community banks experienced a growth of $18 billion
(5.3 percent) and $2.9 billion (6.3 percent), respectively. Total unused commercial real estate (CRE)
loans—including construction and development—
increased by $4.1 billion (6.7 percent) during the quarter to $64.7 billion, indicating continued credit
extension, as off-balance and on-balance CRE loans
increased from the previous quarter.

Noninterest Expense Increased From a Year Ago
Noninterest expense at community banks was $553.5
million (3.9 percent) higher than in third quarter 2013.
The year-over-year increase in noninterest expense was
led by higher salary and employee benefits (up $381.5
million, or 5 percent). Close to 65 percent of community banks reported higher noninterest expense from
the year-ago quarter. However, full-time employees at
community banks only increased by 4,757 (1.1 percent)
over the year to 445,090. The average asset per
employee totaled $4.6 million for the current quarter,
up from $4.4 million in third quarter 2013.

Loan Growth Increased From the Second Quarter
and a Year Ago
Loan balances increased by $25.3 billion (1.9 percent)
from the second quarter 2014, totaling $1.3 trillion.
Almost three out of four community banks (71
percent) reported higher loan growth from the previous
quarter. Community banks reported higher loan growth

Community Banks Expanded Small Loans to
Businesses
Small loans to businesses totaled $299 billion in the
third quarter, up $2.7 billion (0.9 percent) from the
previous quarter, outperforming the industry (up $2.2
billion, or 0.3 percent).4 Close to 56 percent of community banks increased small loans to businesses from the
previous quarter, led by agricultural production loans

Items that are greater than $25,000 and exceed 3 percent of all other
noninterest income are reported. They include income and fees from
printing and sale of checks, earnings on increase in value of cash
surrender value of life insurance, income and fees from automated
teller machines, rent and other income from other real estate owned,
safe deposit box rent, net change in the fair values of financial instruments accounted for under a fair value option, bank card and credit
card interchange fees, and gains on bargain purchases.
3

Small loans to businesses consist of loans to commercial borrowers
up to $1 million and farm loans up to $500,000.
4

Chart 3

Chart 4

Change in Loan Balances and Unused Commitments

Noncurrent Loan Rates for FDIC-Insured Community Banks

Billions of Dollars

Percent of Loan Portfolio Noncurrent
16

FDIC-Insured Community Banks

24.1

Change 3Q 2014 vs. 3Q 2013
Change 3Q 2014 vs. 2Q 2014

18.1

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

14
12

18.0

10
11.7

8

9.8

8.2

6.1
2.4
Nonfarm
Nonresidential
RE

C&I
Loans

Source: FDIC.

FDIC Quarterly

4.0

1-to-4
Family
Residential
RE

3.3

C&D
Loans

4.6
2.6

3.7
1.7

Agricultural Loans to
Production Individuals
Loans

Loan Balances

4.1

2.9

6
3.8

4

1.3
Home
Equity

2

Real Estate
C&I
(CRE & C&D) Loans

0

Unused
Commitments

2006

2007

2008

2009

2010

2011

2012

2013

2014

Source: FDIC.

16

2014, Volume 8, No. 4

Quarterly Banking Profile
(up $1.7 billion, or 6.6 percent) and nonfarm nonresidential loans ($0.7 billion, or 0.5 percent). All major
loan categories rose from third quarter 2013, with small
loans to businesses increasing by $10.3 billion (3.6
percent). Most of the year-over-year increase in small
loans to businesses at community banks was driven by
increases in commercial and industrial loans (up $4.6
billion, or 5.3 percent). Community banks continued to
hold 45 percent of small loans to businesses. Like
community banks, the industry increased small loans to
businesses from the year-ago quarter, but at a slower
rate (2 percent).

(up 17 basis points). Construction and development
loans continued to have the highest noncurrent rate
(3.03 percent); however, that rate has declined for 16
consecutive quarters. The quarterly net charge-off rate
was 0.16 percent, down 13 basis points from third quarter 2013, and remained down 29 basis points from the
industry rate of 0.45 percent. The coverage ratio (loan
loss reserves relative to noncurrent loans) for community banks improved from 96.3 percent to 97.14 percent
during the quarter, and was well above the industry
average of 72.86 percent. Despite a small decline in
reserves during the quarter (down $74 million, or 0.4
percent), the coverage ratio has increased for 12
consecutive quarters.

Asset Quality Continued to Improve
Noncurrent loan balances totaled $20 billion for the
current quarter, down $5.1 billion (20.3 percent) from
third quarter 2013. Close to 61 percent of community
banks lowered their noncurrent loan balances versus
the year-ago quarter. The noncurrent rate was 1.5
percent for community banks in third quarter 2014, the
lowest level since fourth quarter 2007. The noncurrent
rate fell 4 basis points from the second quarter and 48
basis points from the previous year, and remained down
61 basis points from the industry rate of 2.11 percent.
The noncurrent rate declined for most major loan categories from the year before, except for credit card loans

FDIC Quarterly

Two Community Banks Failed in the Third Quarter
The number of FDIC-insured community banks totaled
6,107 in third quarter 2014, down 56 banks from the
previous quarter. Two community banks failed during
the quarter. Community banks continued to represent
93 percent of insured institutions, with $2 trillion in
assets, $1.7 trillion in deposits, and $226 billion in
equity capital.
Author:

17

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

2014, Volume 8, No. 4

TABLE I-B. Selected Indicators, FDIC-Insured Community Banks
Return on assets (%)������������������������������������������������������������������������������������������������������
Return on equity (%)�������������������������������������������������������������������������������������������������������
Core capital (leverage) ratio (%)������������������������������������������������������������������������������������
Noncurrent assets plus other real estate owned to assets (%)������������������������������������
Net charge-offs to loans (%)������������������������������������������������������������������������������������������
Asset growth rate (%)�����������������������������������������������������������������������������������������������������
Net interest margin (%)���������������������������������������������������������������������������������������������������
Net operating income growth (%)����������������������������������������������������������������������������������
Number of institutions reporting�������������������������������������������������������������������������������������
Percentage of unprofitable institutions (%)��������������������������������������������������������������������

2014*
0.92
8.44
10.60
1.46
0.20
1.13
3.61
1.03
6,107
6.76

2013*
0.93
8.54
10.48
1.89
0.31
1.12
3.57
18.52
6,380
8.13

2013
0.90
8.28
10.44
1.72
0.32
0.25
3.59
14.65
6,307
8.40

2012
0.83
7.67
10.18
2.27
0.59
2.24
3.67
56.54
6,543
11.16

2011
0.55
5.17
9.98
2.84
0.87
1.47
3.74
204.98
6,800
16.35

2010
0.21
2.08
9.56
3.25
1.11
-2.13
3.71
209.82
7,017
22.15

2009
-0.14
-1.42
9.30
3.26
1.25
3.35
3.56
-159.37
7,251
29.71

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

TABLE II-B. Aggregate Condition and Income Data, FDIC-Insured Community Banks
3rd Quarter
2014
6,107
445,090

2nd Quarter
2014
6,163
448,005

3rd Quarter
2013
6,380
457,163

%Change
13Q3-14Q3
-4.3
-2.6

$2,031,705
1,017,241
355,440
396,550
82,894
49,203
186,291
58,289
1,790
46,093
29,444
556
1,336,801
19,450
1,317,351
452,656
9,450
12,571
239,678

$2,022,238
1,004,794
354,196
392,691
79,646
47,989
184,907
56,999
1,817
43,645
28,576
555
1,318,366
19,550
1,298,816
458,191
10,004
12,507
242,720

$2,008,965
982,395
347,563
388,606
75,913
48,158
174,975
55,066
1,787
41,861
27,364
546
1,281,115
20,917
1,260,197
468,161
12,389
12,407
255,811

1.1
3.5
2.3
2.0
9.2
2.2
6.5
5.9
0.2
10.1
7.6
1.9
4.3
-7.0
4.5
-3.3
-23.7
1.3
-6.3

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

2,031,705
1,672,413
1,672,195
217
59,384
1,300,091
117,192
400
15,632
226,068
225,915

2,022,238
1,664,163
1,663,940
222
56,163
1,303,836
118,990
420
14,823
223,843
223,696

2,008,965
1,660,300
1,660,081
220
52,312
1,320,002
115,563
490
15,911
216,702
216,557

1.1
0.7
0.7
-1.1
13.5
-1.5
1.4
-18.2
-1.8
4.3
4.3

Loans and leases 30-89 days past due�������������������������������������������������������������������������
Noncurrent loans and leases�����������������������������������������������������������������������������������������
Restructured loans and leases��������������������������������������������������������������������������������������
Mortgage-backed securities������������������������������������������������������������������������������������������
Earning assets����������������������������������������������������������������������������������������������������������������
FHLB Advances��������������������������������������������������������������������������������������������������������������
Unused loan commitments���������������������������������������������������������������������������������������������
Trust assets��������������������������������������������������������������������������������������������������������������������
Assets securitized and sold�������������������������������������������������������������������������������������������
Notional amount of derivatives���������������������������������������������������������������������������������������
First Three
INCOME DATA
Quarters 2014
Total interest income�������������������������������������������������������������������
$56,665
Total interest expense�����������������������������������������������������������������
6,826
Net interest income��������������������������������������������������������������
49,839
Provision for loan and lease losses��������������������������������������������
1,867
Total noninterest income�������������������������������������������������������������
13,229
Total noninterest expense�����������������������������������������������������������
43,776
Securities gains (losses)�������������������������������������������������������������
389
Applicable income taxes�������������������������������������������������������������
3,993
Extraordinary gains, net��������������������������������������������������������������
2
Total net income (includes minority interests)���������������������
13,823
		
Bank net income������������������������������������������������������������
13,807
Net charge-offs����������������������������������������������������������������������������
1,895
Cash dividends����������������������������������������������������������������������������
6,134
Retained earnings�����������������������������������������������������������������������
7,672
Net operating income�����������������������������������������������������������
13,515

9,034
20,022
11,363
197,924
1,879,822
85,873
248,575
238,569
18,906
43,410
First Three
Quarters 2013
$57,104
7,984
49,120
2,408
14,511
44,330
541
3,634
45
13,845
13,825
2,874
6,080
7,744
13,378

8,943
20,300
11,113
201,690
1,865,993
87,084
242,784
243,767
15,340
48,984
3rd Quarter
2014
$19,312
2,280
17,032
555
4,535
14,820
110
1,411
-6
4,885
4,878
544
1,926
2,952
4,803

9,880
25,385
12,807
207,599
1,847,837
80,134
233,841
223,856
15,656
44,339
3rd Quarter
2013
$19,241
2,563
16,678
736
4,606
14,842
15
1,186
0
4,536
4,527
928
2,251
2,276
4,529

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



FDIC Quarterly

%Change
-0.8
-14.5
1.5
-22.5
-8.8
-1.2
-28.1
9.9
-96.1
-0.2
-0.1
-34.1
0.9
-0.9
1.0

-8.6
-21.1
-11.3
-4.7
1.7
7.2
6.3
6.6
20.8
-2.1
%Change
13Q3-14Q3
0.4
-11.0
2.1
-24.7
-1.6
-0.2
623.6
19.0
N/M
7.7
7.8
-41.3
-14.4
29.7
6.1

N/M - Not Meaningful

18

2014, Volume 8, No. 4

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

Third Quarter 2014
(dollar figures in millions)

All Community Banks
Number of institutions reporting�����������������������������������
6,107
Total employees (full-time equivalent)�������������������������
445,090

New York
718
87,432

Atlanta
757
58,827

Chicago
1,362
96,199

Kansas City
1,550
71,619

Dallas
San Francisco
1,309
411
96,123
34,890

CONDITION DATA
Total assets�������������������������������������������������������������������
Loans secured by real estate��������������������������������
		
1-4 Family residential mortgages������������������
		Nonfarm nonresidential���������������������������������
		
Construction and development����������������������
		
Home equity lines�������������������������������������������
Commercial & industrial loans������������������������������
Loans to individuals�����������������������������������������������
		Credit cards����������������������������������������������������
Farm loans�������������������������������������������������������������
Other loans & leases���������������������������������������������
Less: Unearned income����������������������������������������
Total loans & leases����������������������������������������������
Less: Reserve for losses���������������������������������������
Net loans and leases���������������������������������������������
Securities���������������������������������������������������������������
Other real estate owned����������������������������������������
Goodwill and other intangibles�����������������������������
All other assets������������������������������������������������������

$2,031,705
1,017,241
355,440
396,550
82,894
49,203
186,291
58,289
1,790
46,093
29,444
556
1,336,801
19,450
1,317,351
452,656
9,450
12,571
239,678

$513,171
293,927
122,058
103,432
15,739
16,140
43,412
11,391
202
494
7,474
147
356,550
4,347
352,204
104,848
1,180
4,081
50,859

$250,259
133,835
42,442
59,002
14,781
7,749
19,637
7,549
139
1,236
2,081
95
164,242
2,572
161,670
51,039
2,486
1,294
33,770

$392,934
196,870
72,176
72,703
11,864
11,994
35,218
12,238
456
7,196
5,499
65
256,957
4,121
252,837
90,649
1,981
2,299
45,168

$311,690
134,151
40,261
47,111
10,597
4,314
30,668
9,672
446
25,333
5,245
26
205,042
3,100
201,942
72,739
1,453
1,695
33,860

$394,524
174,276
58,185
71,607
23,333
4,389
40,298
13,718
323
9,240
6,334
117
243,749
3,496
240,254
99,147
1,765
2,290
51,068

$169,128
84,183
20,320
42,695
6,579
4,616
17,059
3,721
224
2,594
2,810
106
110,260
1,816
108,444
34,233
585
912
24,953

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

2,031,705
1,672,413
1,672,195
217
59,384
1,300,091
117,192
400
15,632
226,068
225,915

513,171
406,471
406,344
126
17,627
307,803
44,165
207
5,169
57,160
57,112

250,259
208,484
208,440
45
6,551
163,531
12,141
56
1,663
27,915
27,898

392,934
325,897
325,871
26
12,453
267,686
20,532
88
2,806
43,611
43,556

311,690
257,556
257,556
0
9,052
208,295
17,949
4
1,910
34,271
34,269

394,524
332,654
332,654
0
8,581
249,713
16,305
7
2,531
43,026
42,996

169,128
141,351
141,331
20
5,120
103,063
6,100
38
1,554
20,085
20,083

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�������������������������������������

9,034
20,022
11,363
197,924
1,879,822
85,873
248,575
238,569
18,906
43,410

2,521
6,020
2,820
58,518
477,363
35,160
60,684
52,746
5,628
15,035

1,346
3,326
1,975
22,365
228,947
9,212
29,419
9,261
514
5,885

1,882
4,671
2,993
36,914
363,013
14,069
48,165
68,120
6,127
6,768

1,091
2,055
1,303
24,358
289,393
11,757
41,938
62,314
4,511
5,472

1,828
2,779
1,310
38,532
364,127
12,168
44,344
39,255
620
7,370

366
1,172
963
17,236
156,978
3,507
24,025
6,874
1,505
2,880

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

$19,312
2,280
17,032
555
4,535
14,820
110
1,411
-6
4,885
4,878
544
1,926
2,952
4,803

$4,681
711
3,970
158
805
3,391
32
400
-2
855
852
145
247
605
831

$2,469
297
2,172
65
547
1,995
21
170
-3
507
506
98
172
334
494

$3,656
426
3,230
108
1,172
3,008
20
311
0
996
994
123
492
502
980

$2,992
343
2,649
79
716
2,196
17
171
0
935
935
79
374
561
921

$3,896
376
3,520
131
915
2,956
12
198
-1
1,161
1,160
99
488
671
1,152

$1,619
127
1,492
13
380
1,273
7
161
0
431
431
0
153
278
426

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

FDIC Quarterly

19

2014, Volume 8, No. 4

Table IV-B. Third Quarter 2014, FDIC-Insured Community Banks
All Community Banks
3rd Quarter
2014
Performance ratios (annualized, %)
Yield on earning assets��������������������������������������������������
Cost of funding earning assets��������������������������������������
Net interest margin��������������������������������������������������
Noninterest income to assets�����������������������������������������
Noninterest expense to assets���������������������������������������
Loan and lease loss provision to assets������������������������
Net operating income to assets�������������������������������������
Pretax return on assets��������������������������������������������������
Return on assets�������������������������������������������������������������
Return on equity�������������������������������������������������������������
Net charge-offs to loans and leases������������������������������
Loan and lease loss provision to net charge-offs���������
Efficiency ratio����������������������������������������������������������������
Net interest income to operating revenue����������������������
% of unprofitable institutions������������������������������������������
% of institutions with earnings gains������������������������������

4.14
0.49
3.65
0.90
2.94
0.11
0.95
1.25
0.97
8.72
0.16
101.85
68.38
78.97
6.60
63.01

2nd Quarter
2014

Third Quarter 2014, Geographic Regions*
New York

4.10
0.49
3.61
0.91
2.91
0.12
0.94
1.23
0.96
8.76
0.20
93.16
68.42
78.63
7.06
57.54

3.95
0.60
3.35
0.63
2.66
0.12
0.65
0.98
0.67
6.04
0.16
108.59
70.66
83.14
9.33
62.53

Atlanta
4.34
0.52
3.82
0.88
3.20
0.10
0.79
1.09
0.81
7.34
0.24
66.17
72.94
79.87
10.04
63.14

Chicago
4.05
0.47
3.58
1.20
3.07
0.11
1.00
1.33
1.02
9.20
0.19
87.59
68.02
73.38
7.42
61.01

Kansas City

Dallas

4.16
0.48
3.68
0.92
2.83
0.10
1.19
1.43
1.21
11.02
0.15
101.10
64.92
78.72
4.39
62.84

4.32
0.42
3.90
0.93
3.02
0.13
1.18
1.39
1.18
10.89
0.17
132.38
66.36
79.38
4.05
64.48

San Francisco
4.18
0.33
3.85
0.91
3.04
0.03
1.02
1.42
1.03
8.67
0.00
N/M
67.83
79.70
9.25
66.18

Table V-B. First Three Quarters 2014, FDIC-Insured Community Banks
All Community Banks
First Three
First Three
Quarters 2014 Quarters 2013
Performance ratios (%)
Yield on earning assets��������������������������������������������������
Cost of funding earning assets��������������������������������������
Net interest margin��������������������������������������������������
Noninterest income to assets�����������������������������������������
Noninterest expense to assets���������������������������������������
Loan and lease loss provision to assets������������������������
Net operating income to assets�������������������������������������
Pretax return on assets��������������������������������������������������
Return on assets�������������������������������������������������������������
Return on equity�������������������������������������������������������������
Net charge-offs to loans and leases������������������������������
Loan and lease loss provision to net charge-offs���������
Efficiency ratio����������������������������������������������������������������
Net interest income to operating revenue����������������������
% of unprofitable institutions������������������������������������������
% of institutions with earnings gains������������������������������

4.11
0.49
3.61
0.88
2.93
0.12
0.90
1.19
0.92
8.44
0.20
98.50
69.08
79.02
6.76
60.32

First Three Quarters 2014, Geographic Regions*
New York

4.16
0.58
3.57
0.97
2.97
0.16
0.90
1.17
0.93
8.54
0.31
83.80
69.34
77.20
8.13
51.71

3.94
0.60
3.34
0.63
2.66
0.17
0.59
0.94
0.63
5.71
0.23
111.63
70.84
83.05
8.36
56.96

Atlanta
4.33
0.53
3.79
0.85
3.19
0.11
0.76
1.04
0.78
7.16
0.26
66.91
73.59
80.22
10.83
62.88

Chicago
4.02
0.48
3.54
1.18
3.06
0.13
0.96
1.27
0.97
8.97
0.25
81.33
68.45
73.40
8.08
54.70

Kansas City

Dallas

4.12
0.48
3.63
0.92
2.83
0.09
1.16
1.38
1.18
10.93
0.14
105.44
65.68
78.44
3.94
63.16

4.26
0.42
3.83
0.91
3.00
0.12
1.12
1.33
1.13
10.52
0.16
127.76
67.38
79.58
4.51
63.71

San Francisco
4.14
0.33
3.80
0.88
3.08
0.04
0.95
1.31
0.97
8.15
0.06
109.17
69.63
80.00
9.98
58.64

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

FDIC Quarterly

20

2014, Volume 8, No. 4

Quarterly Banking Profile
Table VI-B. Loan Performance, FDIC-Insured Community Banks
Geographic Regions*
September 30, 2014

All Community Banks

New York

Atlanta

Chicago

Kansas City

Dallas

San Francisco

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

0.67
0.55
0.49
0.29
0.51
1.05
0.53
1.70
1.90
1.69
0.32
0.68

0.69
0.65
0.50
0.25
0.63
1.00
0.34
2.66
3.76
2.64
0.42
0.71

0.79
0.60
0.58
0.37
0.59
1.26
0.65
1.94
1.16
1.95
0.23
0.82

0.77
0.57
0.61
0.54
0.51
1.12
0.52
1.22
1.33
1.22
0.28
0.73

0.52
0.50
0.41
0.11
0.36
0.89
0.66
1.06
2.81
0.98
0.28
0.53

0.72
0.55
0.46
0.27
0.43
1.20
0.62
1.94
1.17
1.96
0.43
0.75

0.31
0.21
0.25
0.15
0.21
0.57
0.39
0.59
1.06
0.56
0.29
0.33

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

1.67
3.03
1.58
0.76
0.90
1.86
1.20
0.85
0.99
0.84
0.43
1.50

1.82
3.58
1.65
0.36
1.01
2.25
1.25
0.91
1.82
0.89
0.29
1.69

2.16
4.73
1.88
1.70
0.88
1.94
1.27
2.09
0.55
2.12
0.86
2.02

2.06
3.82
2.19
1.56
1.07
2.11
1.36
0.48
0.79
0.46
0.57
1.82

1.15
2.38
1.27
0.68
0.51
1.26
1.15
0.54
1.39
0.50
0.37
1.00

1.26
1.70
1.12
1.02
0.68
1.34
1.03
0.80
0.61
0.81
0.41
1.14

1.12
2.30
1.09
0.27
0.73
1.13
1.14
0.36
0.67
0.34
0.45
1.06

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

0.16
0.17
0.14
0.10
0.21
0.21
0.26
0.68
4.14
0.56
0.13
0.20

0.20
0.35
0.12
0.03
0.16
0.31
0.28
0.73
5.60
0.64
0.09
0.23

0.22
0.45
0.22
0.18
0.26
0.16
0.34
0.71
1.51
0.70
0.21
0.26

0.24
0.17
0.26
0.24
0.32
0.25
0.28
0.54
3.23
0.43
0.10
0.25

0.09
0.04
0.12
0.09
0.18
0.12
0.24
0.65
8.11
0.29
0.05
0.14

0.08
0.07
0.06
0.23
0.18
0.09
0.23
0.79
1.80
0.77
0.28
0.16

0.01
-0.32
0.04
0.01
0.04
0.02
0.16
0.50
2.03
0.40
0.21
0.06

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

$1,017.2
82.9
396.6
75.2
49.2
355.4
186.3
58.3
1.8
56.5
75.5
1,337.4

$293.9
15.7
103.4
35.1
16.1
122.1
43.4
11.4
0.2
11.2
8.0
356.7

$133.8
14.8
59.0
5.8
7.7
42.4
19.6
7.5
0.1
7.4
3.3
164.3

$196.9
11.9
72.7
14.1
12.0
72.2
35.2
12.2
0.5
11.8
12.7
257.0

$134.2
10.6
47.1
7.0
4.3
40.3
30.7
9.7
0.4
9.2
30.6
205.1

$174.3
23.3
71.6
6.0
4.4
58.2
40.3
13.7
0.3
13.4
15.6
243.9

$84.2
6.6
42.7
7.2
4.6
20.3
17.1
3.7
0.2
3.5
5.4
110.4

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

248,575
19,186
44,205
86,150

60,684
3,981
13,295
19,682

29,419
3,434
5,971
9,002

48,165
2,276
6,681
18,041

41,938
2,388
5,330
14,340

44,344
5,428
9,547
15,942

24,025
1,679
3,380
9,143

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

FDIC Quarterly

21

2014, Volume 8, No. 4

INSURANCE FUND INDICATORS
■
■
■

DIF Reserve Ratio Rises 5 Basis Points to 0.89 Percent
Insured Deposits Increase by 0.4 Percent
Two Institutions Fail During Third Quarter

Total assets of the 6,589 FDIC-insured institutions
increased by 1.2 percent ($176.7 billion) during the
third quarter of 2014. Total deposits increased by
0.9 percent ($106.3 billion), domestic office deposits
increased by 1.1 percent ($114.0 billion), and foreign
office deposits decreased by 0.5 percent ($7.7 billion).
Domestic noninterest-bearing deposits increased by
1.3 percent ($35.5 billion) and savings deposits and
interest-bearing checking accounts increased by 2
percent ($113.4 billion), while domestic time deposits
decreased by 2.1 percent ($34.9 billion). For the twelve
months ending September 30, total domestic deposits
grew by 6 percent ($573.0 billion), with interest-­bearing
deposits increasing by 4.6 percent ($323.2 billion)
and noninterest-bearing deposits rising by 9.8 percent
($249.7 billion).1 Other borrowed money increased by
17 percent (a little more than half of the increase was
from increases in FHLB advances), securities sold under
agreements to repurchase declined by 16.7 percent, and
foreign deposit growth was nearly flat (a decrease of
0.3 percent) over the same twelve-month period.2

negative provision for insurance losses of $1.7 billion
were the main forces behind the fund balance increase.
The negative provision for insurance losses reflected
unanticipated recoveries from litigation settlements and
receivership asset recoveries that exceeded estimates.
These recoveries were partially offset by an increase in
the contingent loss reserve. Investment income and all
other miscellaneous income net of expenses added
another $86 million to the fund. Third quarter operating expenses and unrealized losses on available-for-sale
securities reduced the fund balance by $497 million. For
the first nine months of 2014, 14 insured institutions
failed, with combined assets of $1.8 billion, at a current
estimated cost to the DIF of $289 million. The DIF’s
reserve ratio was 0.89 percent on September 30, up
from 0.84 percent at June 30, 2014, and 0.68 percent
four quarters ago. The reserve ratio at the time of the
prior DIF balance record—March 31, 2008—was 1.19
percent. Although the third quarter DIF balance was at
a new record level, this did not equate to a reserve ratio
higher than at the March 2008 level due to the increase
in the insurance coverage limit and regular deposit
growth. The first quarter 2008 DIF balance covered
estimated insured deposits of $4.4 trillion, compared to
$6.1 trillion in deposits as of the third quarter.

Total estimated insured deposits increased by 0.4
percent in the third quarter of 2014.3 For institutions
existing at the start and the end of the most recent
quarter, insured deposits increased during the quarter
at 2,809 institutions (43 percent), decreased at 3,754
institutions (57 percent), and remained unchanged at
35 institutions. Estimated insured deposits increased by
2.8 percent over the 12 months ending September 30,
2014.

Effective April 1, 2011, the deposit insurance assessment base changed to average consolidated total assets
minus average tangible equity.4 Revisions to insurance
assessment rates and risk-based pricing rules for large
banks (banks with assets greater than $10 billion) also
became effective on that date.5 Table 1 shows the distribution of the assessment base as of September 30, by
institution asset size category.

The DIF increased by $3.3 billion during the third
­quarter of 2014 to a record $54.3 billion (unaudited).
The prior high for the DIF was $52.8 billion in the first
quarter of 2008. Assessment income of $2 billion and a

Dodd-Frank requires that, for at least five years, the
FDIC must make available to the public the reserve
ratio and the DRR using both estimated insured deposits and the new assessment base. As of September 30,

Throughout the insurance fund discussion, FDIC-insured institutions
include insured commercial banks and savings associations and,
except where noted, exclude insured branches of foreign banks.
2
Other borrowed money includes FHLB advances, term federal funds,
mortgage indebtedness, and other borrowings.
3
Figures for estimated insured deposits in this discussion include
insured branches of foreign banks, in addition to insured commercial
banks and savings institutions.
1

FDIC Quarterly

There is an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under Dodd-Frank.
5
The Fourth Quarter 2010 Quarterly Banking Profile includes a more
detailed explanation of these changes.
4

22

2014, Volume 8, No. 4

Quarterly Banking Profile
Table 1

Distribution of the Assessment Base for FDIC-Insured Institutions*
by Asset Size
Data as of September 30, 2014
Asset Size
Less Than $1 Billion
$1 - $10 Billion
$10 - $50 Billion
$50 - $100 Billion
Over $100 Billion
Total

Number of
Institutions
5,906
575
72
12
24
6,589

Percent of
Assessment Base**
Total Institutions
($ Bil.)
89.6
$1,187.1
8.7
1,371.7
1.1
1,412.1
0.2
801.1
0.4
8,290.9
100.0
13,062.8

Percent of
Base
9.1
10.5
10.8
6.1
63.5
100.0

* Excludes insured U.S. branches of foreign banks.
** Average consolidated total assets minus average tangible equity, with adjustments for banker’s banks and custodial banks.

2014, the FDIC reserve ratio would have been 0.41
percent using the new assessment base (compared to
0.89 percent using estimated insured deposits), and the
2 percent DRR using estimated insured deposits would
have been 0.94 percent using the new assessment base.

FDIC Quarterly

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

23

2014, Volume 8, No. 4

Table I-C. Insurance Fund Balances and Selected Indicators
3rd
Quarter
2014
$51,059

2nd
Quarter
2014
$48,893

1st
Quarter
2014
$47,191

4th
Quarter
2013
$40,758

2,009

2,224

2,393

2,224

80

87

45

0
406

0
428

0
422

-1,663

-204

348

6

6

9

-91
3,261

73
2,166

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

54,320
33.27

Reserve Ratio (%)�������������

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

Deposit Insurance Fund*
3rd
2nd
1st
4th
Quarter
Quarter
Quarter
Quarter
2013
2013
2013
2012
$37,871
$35,742
$32,958
$25,224

3rd
Quarter
2012
$22,693

2nd
Quarter
2012
$15,292

1st
Quarter
2012
$11,827

4th
Quarter
2011
$7,813

3rd
Quarter
2011
$3,916

2,339

2,526

2,645

2,937

2,833

2,933

3,694

3,209

3,642

23

34

54

-9

66

-8

81

20

33

30

302
436

156
298

0
439

0
436

0
469

0
442

0
407

0
460

0
334

0
433

-4,588

-539

-33

-499

-3,344

-84

-807

12

1,533

-763

9

46

51

55

1,878

57

4,095

63

2,599

83

25
1,702

-277
6,433

71
2,887

-96
2,129

30
2,784

-22
7,734

7
2,531

-108
7,401

160
3,465

40
4,014

-188
3,897

51,059

48,893

47,191

40,758

37,871

35,742

32,958

25,224

22,693

15,292

11,827

7,813

34.82

36.79

43.19

61.58

66.88

133.73

178.67

222.85

479.49

NM

NM

NM

0.89

0.84

0.80

0.79

0.68

0.64

0.60

0.45

0.35

0.32

0.22

0.17

0.12

6,131,924

6,110,124

6,120,679

6,010,853

5,967,558

5,951,124

5,999,614

7,405,042

7,248,466

7,081,206

7,031,331

6,973,468

6,754,060

2.75

2.67

2.02

-18.83

-17.67

-15.96

-14.67

6.19

7.32

8.55

10.22

10.66

24.58

Domestic Deposits����������� 10,213,077 10,099,340
Percent change from
   four quarters earlier�������
6.05
7.16

9,962,453

9,825,398

9,630,462

9,424,504

9,454,659

9,474,585

9,084,803

8,937,725

8,848,706

8,782,134

8,526,713

5.37

3.70

6.01

5.45

6.85

7.88

6.55

8.40

10.51

11.34

9.97

6,739

6,821

6,900

6,949

7,028

7,092

7,190

7,254

7,317

7,366

7,446

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

Number of Institutions
Reporting�����������������������

6,598

6,665

Deposit Insurance Fund Balance
and Insured Deposits
($ Millions)

DIF Reserve Ratios
Percent of Insured Deposits

0.79
0.60

0.64

0.80

0.84

0.89

DIF
Balance

0.68

0.45
0.32

0.12

0.17

9/11

0.35

0.22

3/12

9/12

3/13

9/13

3/14

9/14

DIF-Insured
Deposits

9/11

$7,813

$6,754,060

12/11

11,827

6,973,468

3/12

15,292

7,031,331

6/12

22,693

7,081,206
7,248,466

9/12

25,224

12/12

32,958

7,405,042

3/13

35,742

5,999,614

6/13

37,871

5,951,124

9/13

40,758

5,967,558

12/13

47,191

6,010,853

3/14

48,893

6,120,679

6/14

51,059

6,110,124

9/14

54,320

6,131,924

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

2014***
329
$102,257

2013***

2013

515
$174,188

467
$152,687

2012
651
$232,701

2011
813
$319,432

2010
884
$390,017

2009
702
$402,782

Failed Institutions
92
157
Number of institutions��������������������������������������������������
14
22
24
51
140
$34,923
$92,085
Total assets****�������������������������������������������������������������
$1,816
$5,860
$6,044
$11,617
$169,709
Assisted Institutions*****
0
0
Number of institutions��������������������������������������������������
0
0
0
0
8
$0
$0
$0
$0
$0
$0
Total assets�������������������������������������������������������������������
$1,917,482
* Quarterly financial statement results are unaudited.
NM - Not meaningful
** Beginning in the third quarter of 2009, estimates of insured deposits are based on a $250,000 general coverage limit. The Dodd-Frank Wall Street Reform and Consumer Protection Act
(Dodd-Frank) temporarily provided unlimited coverage for noninterest-bearing transaction accounts for two years beginning December 31, 2010, and ending December 31, 2012.
*** Through September 30.
**** Total assets are based on final Call Reports submitted by failed institutions.
***** Assisted institutions represent eight institutions under a single holding company that received assistance in 2009.

FDIC Quarterly

24

2014, Volume 8, No. 4

Quarterly Banking Profile
Table III-C. Estimated FDIC-Insured Deposits by Type of Institution
(dollar figures in millions)
September 30, 2014
Commercial Banks and Savings Institutions

Number of
Institutions

Total
Assets

Domestic
Deposits*

Est. Insured
Deposits

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

5,705
3,755
1,092
858

$14,290,077
2,251,894
9,846,015
2,192,167

$9,365,169
1,751,746
6,163,473
1,449,951

$5,430,307
1,299,218
3,401,370
729,718

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

884
462
422

1,059,094
701,252
357,843

807,534
539,670
267,865

672,153
454,218
217,936

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

6,589

15,349,171

10,172,703

6,102,460

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

9

109,964

40,373

29,464

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

6,598

15,459,135

10,213,077

6,131,924

* Excludes $1.4 trillion in foreign office deposits, which are not FDIC insured.

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range
Quarter Ending June 30, 2014 (dollar figures in billions)
Number of
Annual Rate in Basis Points
Institutions
2.50-5.00
1,423
5.01-7.50
2,996
7.51-10.00
1,288
10.01-15.00
572
15.01-20.00
33
20.01-25.00
286
25.01-30.00
8
30.01-35.00
56
greater than 35.00
3

Percent of Total
Institutions
21.35
44.95
19.32
8.58
0.50
4.29
0.12
0.84
0.05

Amount of
Assessment Base*
$2,871
7,955
1,438
410
118
73
10
22
9

Percent of Total
Assessment Base
22.25
61.64
11.15
3.18
0.91
0.56
0.07
0.17
0.07

* Beginning in the second quarter of 2011, the assessment base was changed to average consolidated total assets minus tangible equity, as
required by the Dodd-Frank Act.

FDIC Quarterly

25

2014, Volume 8, No. 4

Notes to Users

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

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

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

Tables I-B through VI-B.

Summary of FDIC Research Definition of Community
Banking Organizations

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

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

26

2014, Volume 8, No. 4

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

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

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

ACCOUNTING CHANGES

Private Company Accounting Alternatives, Including Accounting
for Goodwill
On January 16, 2014, the FASB issued Accounting Standards
Update (ASU) No. 2014-02, “Accounting for Goodwill.” This
ASU generally permits a private company to elect to amortize
goodwill on a straight-line basis over a period of ten years (or
less than ten years if more appropriate) and apply a simplified
impairment model to goodwill. In addition, if a private company chooses to adopt the ASU’s goodwill accounting alternative, the ASU requires the private company to make an
accounting policy election to test goodwill for impairment at
either the entity level or the reporting unit level. Goodwill
must be tested for impairment when a triggering event occurs
that indicates that the fair value of an entity (or a reporting
unit) may be below its carrying amount. In contrast, existing
U.S. GAAP does not permit goodwill to be amortized, instead
requiring goodwill to be tested for impairment at the reporting
unit level annually and between annual tests in certain circumstances. The ASU’s goodwill accounting alternative, if
elected by a private company, is effective prospectively for
new goodwill recognized in annual periods beginning after
December 15, 2014, and in interim periods within annual
periods beginning after December 15, 2015. Goodwill existing
as of the beginning of the period of adoption is to be amortized prospectively over ten years (or less than ten years if
more appropriate). The ASU states that early application of
the goodwill accounting alternative is permitted for any annual or interim period for which a private company’s financial
statements have not yet been made available for issuance.
A bank or savings association that meets the private company
definition in ASU 2014-02 is permitted, but not required, to
adopt this ASU for Call Report purposes and may choose to
early adopt the ASU. For example, a calendar year private
institution could begin to apply the provisions of ASU 201402 in its Call Report for September 30, 2014, in which case it
would report nine months’ amortization of goodwill existing
as of January 1, 2014, and the amortization of any new goodwill recognized in the first nine months of 2014. Goodwill
amortization expense should be reported unless the amortization is associated with a discontinued operation, in which
case the goodwill amortization should be included within the
results of discontinued as “Extraordinary items and other
adjustments, net of income taxes.”
For additional information on the private company accounting alternative for goodwill, institutions should refer to ASU
2014-02, which is available at http://www.fasb.org/jsp/FASB/
Page/SectionPage&cid=1176156316498.
Definitions of Private Company and Public Business Entity
According to ASU No. 2014-02, “Accounting for Goodwill,”
a private company is a business entity that is not a public

DATA SOURCES
The financial information appearing in this publication is
obtained primarily from the Federal Financial Institutions
Examination Council (FFIEC) Consolidated Reports of
Condition and Income (Call Reports) and the OTS Thrift
Financial Reports submitted by all FDIC-insured depository
institutions. (TFR filers began filing Call Reports effective
with the quarter ending March 31, 2012.) This information is
stored on and retrieved from the FDIC’s Research
Information System (RIS) database.

COMPUTATION METHODOLOGY
Parent institutions are required to file consolidated reports,
while their subsidiary financial institutions are still required
to file separate reports. Data from subsidiary institution
reports are included in the Quarterly Banking Profile tables,
which can lead to double-counting. No adjustments are made
for any double-counting of subsidiary data. Additionally,
­certain adjustments are made to the OTS Thrift Financial
Reports to provide closer conformance with the reporting and
accounting requirements of the FFIEC Call Reports. (TFR
­filers began filing Call Reports effective with the quarter ending March 31, 2012.)
All asset and liability figures used in calculating performance
ratios represent average amounts for the period (beginning-ofperiod amount plus end-of-period amount plus any interim
periods, divided by the total number of periods). For “poolingof-interest” mergers, the assets of the acquired institution(s)
are included in average assets since the year-to-date income
includes the results of all merged institutions. No adjustments
are made for “purchase accounting” mergers. Growth rates
represent the percentage change over a 12-month period in
totals for institutions in the base period to totals for institutions in the current period. For the community bank subgroup, growth rates will reflect changes over time in the
number and identities of institutions designated as community banks, as well as changes in the assets and liabilities, and
income and expenses of group members. Unless indicated
otherwise, growth rates are not adjusted for mergers or other
changes in the composition of the community bank subgroup.
Maximum branch deposit size indexed to equal $1.25 billion in 1985
and $5 billion in 2010.
4

FDIC Quarterly

27

2014, Volume 8, No. 4

business entity. ASU No. 2013-12, “Definition of a Public
Business Entity,” which was issued in December 2013, added
this term to the Master Glossary in the Accounting Standards
Codification. This ASU states that a business entity, such as
bank or savings association, that meets any one of five criteria
set forth in the ASU is a public business entity for reporting
purposes under U.S. GAAP, including for Call Report purposes. An institution that is a public business entity is not
permitted to apply the private company goodwill accounting
alternative discussed in the preceding section when preparing
its Call Report.
For additional information on the definition of a public business entity, institutions should refer to ASU 2013-12, which
is available at http://www.fasb.org/jsp/FASB/Page/
SectionPage&cid=1176156316498.
Reporting Certain Government-Guaranteed Mortgage Loans
Upon Foreclosure
In August 2014, the FASB issued Accounting Standards
Update (ASU) No. 2014-14, “Classification of Certain
Government-Guaranteed Mortgage Loans Upon Foreclosure,”
to address diversity in practice for how government-guaranteed mortgage loans are recorded upon foreclosure. The ASU
updates guidance contained in ASC Subtopic 310-40,
Receivables—Troubled Debt Restructurings by Creditors (formerly FASB Statement No. 15, “Accounting by Debtors and
Creditors for Troubled Debt Restructurings,” as amended),
because U.S. GAAP previously did not provide specific guidance on how to categorize or measure foreclosed mortgage
loans that are government guaranteed.
This guidance is applicable to fully and partially governmentguaranteed mortgage loans. Upon foreclosure, the separate
other receivable should be measured based on the amount of
the loan balance (principal and interest) expected to be
recovered from the guarantor. This other receivable should be
reported in “All other assets.” Any interest income earned on
the other receivable would be reported in “Other interest
income.” Other real estate owned would not be recognized by
the institution.
For institutions that are public business entities, as defined
under U.S. GAAP, ASU 2014-14 is effective for fiscal years,
and interim periods within those fiscal years, beginning after
December 15, 2014. For example, institutions with a calendar year fiscal year that are public business entities must
apply the ASU in their Call Reports beginning March 31,
2015. However, institutions that are not public business entities (i.e., that are private companies) are not required to
apply the guidance in ASU 2014-14 until annual periods
ending after December 15, 2015, and interim periods beginning after December 15, 2015. Thus, institutions with a calendar year fiscal year that are private companies must apply
the ASU in their December 31, 2015, and subsequent quarterly Call Reports. Earlier adoption of the guidance in ASU
2014-14 is permitted if the institution has already adopted
the amendments in ASU No. 2014-04, “Reclassification of
Residential Real Estate Collateralized Consumer Mortgage
Loans Upon Foreclosure.” Entities can elect to apply ASU
2014-14 on either a modified retrospective transition basis or
a prospective transition basis. For additional information,
institutions should refer to ASU 2014-14, which is available
at http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=
1176156316498.

FDIC Quarterly

Reclassification of Residential Real Estate Collateralized Consumer
Mortgage Loans Upon Foreclosure
In January 2014, the FASB issued Accounting Standards
Update (ASU) No. 2014-04, “Reclassification of Residential
Real Estate Collateralized Consumer Mortgage Loans upon
Foreclosure,” to address diversity in practice for when certain
loan receivables should be derecognized and the real estate
collateral recognized. The ASU updated guidance contained
in Accounting Standards Codification Subtopic 310-40,
Receivables–Troubled Debt Restructurings by Creditors (formerly FASB Statement No.15, “Accounting by Debtors and
Creditors for Troubled Debt Restructurings,” as amended).
Under prior accounting guidance, all loan receivables were
reclassified to other real estate owned (OREO) when the
institution, as creditor, obtained physical possession of the
property, regardless of whether formal foreclosure proceedings
had taken place. The new ASU clarifies when a creditor is
considered to have received physical possession (resulting
from an in-substance repossession or foreclosure) of residential
real estate collateralizing a consumer mortgage loan. Under
the new guidance, physical possession for these residential real
estate properties is considered to have occurred and a loan
receivable would be reclassified to OREO only upon:
— The institution obtaining legal title upon completion of a
foreclosure even if the borrower has redemption rights that
provide the borrower with a legal right for a period of time
after foreclosure to reclaim the property by paying certain
amounts specified by law, or
— The completion of a deed in lieu of foreclosure or similar
legal agreement under which the borrower conveys all
interest in the residential real estate property to the institution to satisfy the loan.
Loans secured by real estate other than consumer mortgage
loans collateralized by residential real estate should continue
to be reclassified to OREO when the institution has received
physical possession of a borrower’s real estate, regardless of
whether formal foreclosure proceedings take place.
For institutions that are public business entities, as defined
under U.S. generally accepted accounting principles, ASU
2014-04 is effective for fiscal years, and interim periods within
those fiscal years, beginning after December 15, 2014. For
example, institutions with a calendar year fiscal year that are
public business entities must apply the ASU in their Call
Reports beginning March 31, 2015. However, institutions
that are not public business entities are not required to apply
the guidance in ASU 2014-04 until annual periods beginning
after December 15, 2014, and interim periods within annual
periods beginning after December 15, 2015. Thus, institutions
with a calendar year fiscal year that are not public business
entities must apply the ASU in their December 31, 2015, and
subsequent quarterly Call Reports. Earlier adoption of the
guidance in ASU 2014-04 is permitted. Entities can elect to
apply the ASU on either a modified retrospective transition
basis or a prospective transition basis. Applying the ASU on a
prospective transition basis should be less complex for institutions than applying the ASU on a modified retrospective transition basis. Under the prospective transition method, an
institution should apply the new guidance to all instances
where it receives physical possession of residential real estate
property collateralizing consumer mortgage loans that occur
after the date of adoption of the ASU. Under the modified
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2014, Volume 8, No. 4

Quarterly Banking Profile
retrospective transition method, an institution should apply a
cumulative-effect adjustment to residential consumer mortgage
loans and OREO existing as of the beginning of the annual
period for which the ASU is effective. As a result of adopting
the ASU on a modified retrospective basis, assets reclassified
from OREO to loans should be measured at the carrying value
of the real estate at the date of adoption while assets reclassified from loans to OREO should be measured at the lower of
the net amount of the loan receivable or the OREO property’s
fair value less costs to sell at the time of adoption.
For additional information, institutions should refer to ASU
2014-04, which is available at http://www.fasb.org/jsp/FASB/
Page/SectionPage&cid=1176156316498.
True-Up Liability Under an FDIC Loss-Sharing Agreement
An insured depository institution that acquires a failed
insured institution may enter into a loss-sharing agreement
with the FDIC under which the FDIC agrees to absorb a portion of the losses on a specified pool of the failed institution’s
assets during a specified time period. The acquiring institution
typically records an indemnification asset representing its
right to receive payments from the FDIC for losses during the
specified time period on assets covered under the loss-sharing
agreement.
Since 2009, most loss-sharing agreements have included a
true-up provision that may require the acquiring institution
to reimburse the FDIC if cumulative losses in the acquired
loss-share portfolio are less than the amount of losses claimed
by the institution throughout the loss-sharing period.
Typically, a true-up liability may result because the recovery
period on the loss-share assets (e.g., eight years) is longer
than the period during which the FDIC agrees to reimburse
the acquiring institution for losses on the loss-share portfolio
(e.g., five years).
Consistent with U.S. GAAP and bank guidance for
“Offsetting,” institutions are permitted to offset assets and liabilities recognized in the Report of Condition when a “right
of setoff” exists. Under ASC Subtopic 210-20, Balance
Sheet—Offsetting (formerly FASB Interpretation No. 39,
“Offsetting of Amounts Related to Certain Contracts”), in
general, a right of setoff exists when a reporting institution
and another party each owes the other determinable amounts,
the reporting institution has the right to set off the amounts
each party owes and also intends to set off, and the right of
setoff is enforceable at law. Because the conditions for the
existence of a right of offset in ASC Subtopic 210-20 normally would not be met with respect to an indemnification asset
and a true-up liability under a loss-sharing agreement with
the FDIC, this asset and liability should not be netted for Call
Report purposes. Therefore, institutions should report the
indemnification asset gross (i.e., without regard to any true-up
liability) in Other Assets, and any true-up liability in Other
Liabilities.
In addition, an institution should not continue to report
assets covered by loss-sharing agreements after the expiration
of the loss-sharing period even if the terms of the loss-sharing
agreement require reimbursements from the institution to the
FDIC for certain amounts during the recovery period.
Indemnification Assets and Accounting Standards Update No. 201206 – In October 2012, the FASB issued Accounting Standards
Update (ASU) No. 2012-06, “Subsequent Accounting for an
Indemnification Asset Recognized at the Acquisition Date as
FDIC Quarterly

a Result of a Government-Assisted Acquisition of a Financial
Institution,” to address the subsequent measurement of an
indemnification asset recognized in an acquisition of a financial institution that includes an FDIC loss-sharing agreement.
This ASU amends ASC Topic 805, Business Combinations
(formerly FASB Statement No. 141 (revised 2007),”Business
Combinations”), which includes guidance applicable to FDICassisted acquisitions of failed institutions.
Under the ASU, when an institution experiences a change in
the cash flows expected to be collected on an FDIC loss-sharing indemnification asset because of a change in the cash
flows expected to be collected on the assets covered by the
loss-sharing agreement, the institution should account for the
change in the measurement of the indemnification asset on
the same basis as the change in the assets subject to indemnification. Any amortization of changes in the value of the
indemnification asset should be limited to the lesser of the
term of the indemnification agreement and the remaining life
of the indemnified assets.
The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2012.
For institutions with a calendar year fiscal year, the ASU takes
effect January 1, 2013. Early adoption of the ASU is permitted.
The ASU’s provisions should be applied prospectively to any
new indemnification assets acquired after the date of adoption
and to indemnification assets existing as of the date of adoption arising from an FDIC-assisted acquisition of a financial
institution. Institutions with indemnification assets arising
from FDIC loss-sharing agreements are expected to adopt ASU
2012-06 for Call Report purposes in accordance with the effective date of this standard. For additional information, refer to
ASU 2012-06, available at http://www.fasb.org/jsp/FASB/
Page/SectionPage&cid=1176156316498.
Goodwill Impairment Testing – In September 2011, the FASB
issued Accounting Standards Update (ASU) No. 2011-08,
“Testing Goodwill for Impairment,” to address concerns about
the cost and complexity of the existing goodwill impairment
test in ASC Topic 350, Intangibles-Goodwill and Other
­(formerly FASB Statement No. 142, “Goodwill and Other
Intangible Assets”). The ASU’s amendments to ASC
Topic 350 are effective for annual and interim goodwill
impairment tests performed for fiscal years beginning after
December 15, 2011 (i.e., for annual or interim tests performed
on or after January 1, 2012, for institutions with a calendar
year fiscal year). Early adoption of the ASU was permitted.
Under ASU 2011-08, an institution has the option of first
assessing qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test described in ASC Topic 350. If, after considering
all relevant events and circumstances, an institution determines it is unlikely (that is, a likelihood of 50 percent or less)
that the fair value of a reporting unit is less than its carrying
amount (including goodwill), then the institution does not
need to perform the two-step goodwill impairment test. If the
institution instead concludes that the opposite is true (that is,
it is likely that the fair value of a reporting unit is less than its
carrying amount), then it is required to perform the first step
and, if necessary, the second step of the two-step goodwill
impairment test. Under ASU 2011-08, an institution may
choose to bypass the qualitative assessment for any reporting
unit in any period and proceed directly to performing the first
step of the two-step goodwill impairment test.
29

2014, Volume 8, No. 4

forming TDR loan, if it is in compliance with its modified
terms. If a TDR is not in compliance with its modified terms,
it is reported as a past-due and nonaccrual loan in the appropriate loan category, as well as distinguished from other past
due and nonaccrual loans. To be considered in compliance
with its modified terms, a loan that is a TDR must not be in
nonaccrual status and must be current or less than 30 days past
due on its contractual principal and interest payments under
the modified repayment terms. A loan restructured in a TDR
is an impaired loan. Thus, all TDRs must be measured for
impairment in accordance with ASC Subtopic 310-10,
Receivables – Overall (formerly FASB Statement No. 114,
“Accounting by Creditors for Impairment of a Loan,” as
amended), and the Call Report Glossary entry for “Loan
Impairment.” Consistent with ASC Subtopic 310-10, TDRs
may be aggregated and measured for impairment with other
impaired loans that share common risk characteristics by using
historical statistics, such as average recovery period and
­average amount recovered, along with a composite effective
interest rate. The outcome of such an aggregation approach
must be consistent with the impairment measurement methods prescribed in ASC Subtopic 310-10 and Call Report
instructions for loans that are “individually” considered
impaired instead of the measurement method prescribed in
ASC Subtopic 450-20, Contingencies – Loss Contingencies
(formerly FASB Statement No. 5, “Accounting for Contin­
gencies”) for loans not individually considered impaired that
are collectively evaluated for impairment. When a loan not
previously considered individually impaired is restructured and
determined to be a TDR, absent a partial charge-off, it generally is not appropriate for the impairment estimate on the loan
to decline as a result of the change from the impairment measurement method prescribed in ASC Subtopic 450-20 to the
methods prescribed in ASC Subtopic 310-10.
Troubled Debt Restructurings and Accounting Standards Update
No. 2011-02 – In April 2011, the FASB issued Accounting
Standards Update (ASU) No. 2011-02, “A Creditor’s
Determination of Whether a Restructuring Is a Troubled
Debt Restructuring,” to provide additional guidance to help
creditors determine whether a concession has been granted to
a borrower and whether a borrower is experiencing financial
difficulties. The guidance is also intended to reduce diversity
in practice in identifying and reporting TDRs. This ASU was
effective for public companies for interim and annual periods
beginning on or after June 15, 2011, and should have been
applied retrospectively to the beginning of the annual period
of adoption for purposes of identifying TDRs. The measurement of impairment for any newly identified TDRs resulting
from retrospective application should have been applied prospectively in the first interim or annual period beginning on
or after June 15, 2011. (For most public institutions, the ASU
takes effect July 1, 2011, but retrospective application begins
as of January 1, 2011.) Nonpublic companies should apply the
new guidance for annual periods ending after December 15,
2012, including interim periods within those annual periods.
(For most nonpublic institutions, the ASU took effect
January 1, 2012.) Early adoption of the ASU was permitted
for both public and nonpublic entities. Nonpublic entities
that adopt early are subject to a retrospective identification
requirement. For additional information, refer to ASU 201102, available at http://www.fasb.org/jsp/FASB/Page/
SectionPage&cid=1176156316498.

Extended Net Operating Loss Carryback Period – The Worker,
Homeownership, and Business Assistance Act of 2009, which
was enacted on November 6, 2009, permits banks and other
businesses, excluding those banking organizations that
received capital from the U.S. Treasury under the Troubled
Asset Relief Program, to elect a net operating loss carryback
period of three, four, or five years instead of the usual carryback period of two years for any one tax year ending after
December 31, 2007, and beginning before January 1, 2010.
For calendar-year banks, this extended carryback period
applies to either the 2008 or 2009 tax year. The amount of
the net operating loss that can be carried back to the fifth
carryback year is limited to 50 percent of the available taxable income for that fifth year, but this limit does not apply to
other carryback years.
Under generally accepted accounting principles, banks may
not record the effects of this tax change in their balance
sheets and income statements for financial and regulatory
reporting purposes until the period in which the law was
enacted, i.e., the fourth quarter of 2009. Therefore, banks
should recognize the effects of this fourth quarter 2009 tax
law change on their current and deferred tax assets and liabilities, including valuation allowances for deferred tax assets, in
their Call Reports for December 31, 2009. Banks should not
amend their Call Reports for prior quarters for the effects of
the extended net operating loss carryback period.
The American Recovery and Reinvestment Act of 2009,
which was enacted on February 17, 2009, permits qualifying
small businesses, including FDIC-insured institutions, to elect
a net operating loss carryback period of three, four, or five
years instead of the usual carryback period of two years for
any tax year ending in 2008 or, at the small business’s election, any tax year beginning in 2008. Under generally
­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.
Troubled Debt Restructurings and Current Market Interest Rates –
Many institutions are restructuring or modifying the terms of
loans to provide payment relief for those borrowers who have
suffered deterioration in their financial condition. Such loan
restructurings may include, but are not limited to, reductions
in principal or accrued interest, reductions in interest rates,
and extensions of the maturity date. Modifications may be
executed at the original contractual interest rate on the loan,
a current market interest rate, or a below-market interest rate.
Many of these loan modifications meet the definition of a
troubled debt restructuring (TDR).
The TDR accounting and reporting standards are set forth
in ASC Subtopic 310-40, Receivables – Troubled Debt
Restructurings by Creditors (formerly FASB Statement
No. 15, “Accounting by Debtors and Creditors for Troubled
Debt Restructurings,” as amended). This guidance specifies
that a restructuring of a debt constitutes a TDR if, at the date
of restructuring, the creditor for economic or legal reasons
related to a debtor’s financial difficulties grants a concession
to the debtor that it would not otherwise consider.
In the Call Report, until a loan that is a TDR is paid in full or
otherwise settled, sold, or charged off, it must be reported in
the appropriate loan category, as well as identified as a per-

FDIC Quarterly

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2014, Volume 8, No. 4

Quarterly Banking Profile
interim and annual reporting periods thereafter (i.e., as of
January 1, 2010, for banks with a calendar year fiscal year).
Earlier application is prohibited. Banks are expected to adopt
FAS 166 and FAS 167 for Call Report purposes in accordance with the effective date of these two standards. Also,
FAS 166 has modified the criteria that must be met in order
for a transfer of a portion of a financial asset, such as a loan
participation, to qualify for sale accounting. These changes
apply to transfers of loan participations on or after the effective date of FAS 166. Therefore, banks with a calendar year
fiscal year must account for transfers of loan participations on
or after January 1, 2010, in accordance with FAS 166. In general, loan participations transferred before the effective date
of FAS 166 (January 1, 2010, for calendar year banks) are not
affected by this new accounting standard and pre-FAS 166
participations that were properly accounted for as sales under
FASB Statement No. 140 will continue to be reported as
having been sold.
Accounting Standards Codification – refer to previously published Quarterly Banking Profile notes: http://www2.fdic.
gov/qbp/2011sep/qbpnot.html.

Accounting for Loan Participations – Amended ASC Topic 860
(formerly FAS 166) modified the criteria that must be met in
order for a transfer of a portion of a financial asset, such as a
loan participation, to qualify for sale accounting. These
changes apply to transfers of loan participations on or after
the effective date of amended ASC Topic 860 (January 1,
2010, for banks with calendar year fiscal year), including
advances under lines of credit that are transferred on or after
the effective date of amended ASC Topic 860 even if the line
of credit agreements were entered into before this effective
date. Therefore, banks with a calendar-year fiscal year must
account for transfers of loan participations on or after January
1, 2010, in accordance with amended ASC Topic 860. In
general, loan participations transferred before the effective
date of amended ASC Topic 860 are not affected by this new
accounting standard.
Under amended ASC Topic 860, if a transfer of a portion of
an entire financial asset meets the definition of a “participating interest,” then the transferor (normally the lead lender)
must evaluate whether the transfer meets all of the conditions
in this accounting standard to qualify for sale accounting.
Other-Than-Temporary Impairment – When the fair value of an
investment in an individual available-for-sale or held-tomaturity security is less than its cost basis, the impairment is
either temporary or other-than-temporary. The amount of the
total other-than-temporary impairment related to credit loss
must be recognized in earnings, but the amount of total
impairment related to other factors must be recognized in
other comprehensive income, net of applicable taxes. To
determine whether the impairment is other-than-temporary,
an institution must apply the applicable accounting guidance
– refer to previously published Quarterly Banking Profile notes:
http://www2.fdic.gov/qbp/2011mar/qbpnot.html.
ASC Topics 860 & 810 (formerly FASB Statements 166 & 167) –
In June 2009, the FASB issued Statement No. 166,
Accounting for Transfers of Financial Assets (FAS 166), and
Statement No. 167, Amendments to FASB Interpretation
No. 46(R) (FAS 167), which change the way entities account
for securitizations and special purpose entities. FAS 166
revised FASB Statement No. 140, Accounting for Transfers
and Servicing of Financial Assets and Extinguishments of
Liabilities, by eliminating the concept of a “qualifying specialpurpose entity,” creating the concept of a “participating interest,” changing the requirements for derecognizing financial
assets, and requiring additional disclosures. FAS 167 revised
FASB Interpretation No. 46(R), Consolidation of Variable
Interest Entities, by changing how a bank or other company
determines when an entity that is insufficiently capitalized or
is not controlled through voting or similar rights, i.e., a “variable interest entity” (VIE), should be consolidated. Under
FAS 167, a bank must perform a qualitative assessment to
determine whether its variable interest or interests give it a
controlling financial interest in a VIE. If a bank’s variable
interest or interests provide it with the power to direct the
most significant activities of the VIE, and the right to receive
benefits or the obligation to absorb losses that could potentially be significant to the VIE, the bank is the primary beneficiary of, and therefore must consolidate, the VIE.
Both FAS 166 and FAS 167 take effect as of the beginning of
each bank’s first annual reporting period that begins after
November 15, 2009, for interim periods therein, and for

FDIC Quarterly

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository
institutions, premises, fixed assets, direct investments in real
estate, investment in unconsolidated subsidiaries, customers’
liability on acceptances outstanding, assets held in trading
accounts, federal funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid
deposit insurance assessments, and other assets.
All other liabilities – bank’s liability on acceptances, limited-life
preferred stock, allowance for estimated off-balance-sheet credit losses, fair market value of derivatives, and other liabilities.
Assessment base – effective April 1, 2011, the deposit insurance assessment base has changed to “average consolidated
total assets minus average tangible equity” with an additional
adjustment to the assessment base for banker’s banks and custodial banks, as permitted under Dodd-Frank. Previously the
assessment base was “assessable deposits” and consisted of DIF
deposits (deposits insured by the FDIC Deposit Insurance
Fund) in banks’ domestic offices with certain adjustments.
Assets securitized and sold – total outstanding principal balance
of assets securitized and sold with servicing retained or other
seller- provided credit enhancements.
Capital Purchase Program (CPP) – as announced in October
2008 under the TARP, the Treasury Department purchase of
noncumulative perpetual preferred stock and related warrants
that is treated as Tier 1 capital for regulatory capital purposes
is included in “Total equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued
by publicly-traded banks are reflected as well in “Surplus.”
Warrants to purchase common stock or noncumulative preferred stock of not-publicly-traded bank stock are classified in
a bank’s balance sheet as “Other liabilities.”
Construction and development loans – includes loans for all
­property types under construction, as well as loans for land
acquisition and development.
Core capital – common equity capital plus noncumulative perpetual preferred stock plus minority interest in consolidated
subsidiaries, less goodwill and other ineligible intangible

31

2014, Volume 8, No. 4

assets. The amount of eligible intangibles (including servicing
rights) included in core capital is limited in accordance with
supervisory capital regulations.
Cost of funding earning assets – total interest expense paid on
deposits and other borrowed money as a percentage of average
earning assets.
Credit enhancements – techniques whereby a company attempts
to reduce the credit risk of its obligations. Credit enhancement may be provided by a third party (external credit
enhancement) or by the originator (internal credit enhancement), and more than one type of enhancement may be
associ­ated with a given issuance.
Deposit Insurance Fund (DIF) – the Bank (BIF) and Savings
Association (SAIF) Insurance Funds were merged in 2006 by
the Federal Deposit Insurance Reform Act to form the DIF.
Derivatives notional amount – the notional, or contractual,
amounts of derivatives represent the level of involvement in
the types of derivatives transactions and are not a quantification of market risk or credit risk. Notional amounts represent
the amounts used to calculate contractual cash flows to be
exchanged.
Derivatives credit equivalent amount – the fair value of the
derivative plus an additional amount for potential future credit exposure based on the notional amount, the remaining
maturity and type of the contract.

Earning assets – all loans and other investments that earn
interest or dividend income.
Efficiency ratio – Noninterest expense less amortization of
intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net
operating revenues that are absorbed by overhead expenses,
so that a lower value indicates greater efficiency.
Estimated insured deposits – in general, insured deposits are
total domestic deposits minus estimated uninsured deposits.
Beginning March 31, 2008, for institutions that file Call
Reports, insured deposits are total assessable deposits minus
estimated uninsured deposits. Beginning September 30, 2009,
insured deposits include deposits in accounts of $100,000 to
$250,000 that are covered by a temporary increase in the
FDIC’s standard maximum deposit insurance amount
(SMDIA). The Dodd-Frank Wall Street Reform and
Consumer Protection Act enacted on July 21, 2010, made
permanent the standard maximum deposit insurance amount
(SMDIA) of $250,000. Also, the Dodd-Frank Act amended
the Federal Deposit Insurance Act to include noninterestbearing transaction accounts as a new temporary deposit
insurance account category. All funds held in noninterestbearing transaction accounts were fully insured, without limit,
from December 31, 2010, through December 31, 2012.
Failed/assisted institutions – an institution fails when regulators
take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or
another healthy institution. This action may require the
FDIC to provide funds to cover losses. An institution is
defined as “assisted” when the institution remains open and
receives assistance in order to continue operating.
Fair Value – the valuation of various assets and liabilities on
the balance sheet—including trading assets and liabilities,
available-for-sale securities, loans held for sale, assets and
­liabilities accounted for under the fair value option, and foreclosed assets—involves the use of fair values. During periods
of market stress, the fair values of some financial instruments
and nonfinancial assets may decline.
FHLB advances – all borrowings by FDIC insured institutions
from the Federal Home Loan Bank System (FHLB), as
reported by Call Report filers, and by TFR filers prior to
March 31, 2012.
Goodwill and other intangibles – intangible assets include
­servicing rights, purchased credit card relationships, and other
identifiable intangible assets. Goodwill is the excess of the
purchase price over the fair market value of the net assets
acquired, less subsequent impairment adjustments. Other
intangible assets are recorded at fair value, less subsequent
quarterly amortization and impairment adjustments.
Loans secured by real estate – includes home equity loans,
junior liens secured by 1-4 family residential properties, and
all other loans secured by real estate.
Loans to individuals – includes outstanding credit card balances
and other secured and unsecured consumer loans.
Long-term assets (5+ years) – loans and debt securities with
remaining maturities or repricing intervals of over five years.
Maximum credit exposure – the maximum contractual credit
exposure remaining under recourse arrangements and other
seller-provided credit enhancements provided by the reporting bank to securitizations.

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.

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2014, Volume 8, No. 4

Quarterly Banking Profile
Mortgage-backed securities – certificates of participation in
pools of residential mortgages and collateralized mortgage
obligations issued or guaranteed by government-sponsored or
private enterprises. Also, see “Securities,” below.
Net charge-offs – total loans and leases charged off (removed
from balance sheet because of uncollectibility), less amounts
recovered on loans and leases previously charged off.
Net interest margin – the difference between interest and dividends earned on interest-bearing assets and interest paid to
depositors and other creditors, expressed as a percentage of
average earning assets. No adjustments are made for interest
income that is tax exempt.
Net loans to total assets – loans and lease financing receivables, net of unearned income, allowance and reserves, as a
percent of total assets on a consolidated basis.
Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and extraordinary items. Income taxes subtracted from
operating income have been adjusted to exclude the portion
applicable to securities gains (or losses).
Noncurrent assets – the sum of loans, leases, debt securities,
and other assets that are 90 days or more past d­ue, or in nonaccrual status.
Noncurrent loans & leases – the sum of loans and leases 90 days
or more past due, and loans and leases in nonaccrual status.
Number of institutions reporting – the number of institutions
that actually filed a financial report.
New reporters – insured institutions filing quarterly financial
reports for the first time.
Other borrowed funds – federal funds purchased, securities sold
with agreements to repurchase, demand notes issued to the
U.S. Treasury, FHLB advances, other borrowed money, mortgage indebtedness, obligations under capitalized leases and
trading liabilities, less revaluation losses on assets held in
trading accounts.
Other real estate owned – primarily foreclosed property. Direct
and indirect investments in real estate ventures are excluded.
The amount is reflected net of valuation allowances. For
institutions that file a Thrift Financial Report (TFR), the
­valuation allowance subtracted also includes allowances for
other repossessed assets. Also, for TFR filers the components
of other real estate owned are reported gross of valuation
allowances. (TFR filers began filing Call Reports effective
with the quarter ending March 31, 2012.)
Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their
losses) compared to the same period a year earlier.
“Problem” institutions – federal regulators assign a composite
rating to each financial institution, based upon an evaluation
of financial and operational criteria. The rating is based on a
scale of 1 to 5 in ascending order of supervisory concern.
“Problem” institutions are those institutions with financial,
operational, or managerial weaknesses that threaten their
continued financial viability. Depending upon the degree of
risk and supervisory concern, they are rated either a “4” or
“5.” The number and assets of “problem” institutions are
based on FDIC composite ratings. Prior to March 31, 2008,
for institutions whose primary federal regulator was the OTS,
the OTS composite rating was used.

FDIC Quarterly

Recourse – an arrangement in which a bank retains, in form
or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally
accepted accounting principles) that exceeds a pro rata share
of the bank’s claim on the asset. If a bank has no claim on an
asset it has sold, then the retention of any credit risk is
recourse.
Reserves for losses – the allowance for loan and lease losses on
a consolidated basis.
Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract.
Excludes restructured loans and leases that are not in compliance with the modified terms.
Retained earnings – net income less cash dividends on common and preferred stock for the reporting period.
Return on assets – bank net income (including gains or losses
on securities and extraordinary items) as a percentage of aver­
age total (consolidated) assets. The basic yardstick of bank
profitability.
Return on equity – bank net income (including gains or losses
on securities and extraordinary items) as a percentage of average total equity capital.
Risk-based capital groups – definition:
(Percent)

Well-capitalized

Tier 1
Risk-Based
Capital*

Total
Risk-Based
Capital*

≥10

and

≥6

and

Tier 1
Leverage

Tangible
Equity

≥5

–

Adequately
capitalized

≥8

and

≥4

and

≥4

–

Undercapitalized

≥6

and

≥3

and

≥3

–

Significantly
undercapitalized

<6

or

<3

or

<3

Critically
undercapitalized

–

–

–

and

>2
≤2

* As a percentage of risk-weighted assets.

Risk Categories and Assessment Rate Schedule – The current risk
categories became effective January 1, 2007. Capital ratios and
supervisory ratings distinguish one risk category from another.
Effective April 1, 2011, risk categories for large institutions
(generally those with at least $10 billion in assets) were eliminated. The following table shows the relationship of risk categories (I, II, III, IV) for small institutions to capital and
supervisory groups as well as the initial base assessment rates
(in basis points) for each risk category. Supervisory Group A
generally includes institutions with CAMELS composite ratings of 1 or 2; Supervisory Group B generally includes institutions with a CAMELS composite rating of 3; and Supervisory
Group C generally includes institutions with CAMELS composite ratings of 4 or 5. For purposes of risk-based assessment
capital groups, undercapitalized includes institutions that are
significantly or critically undercapitalized.

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Supervisory Group
Capital Category

A

1. Well Capitalized

I
5–9 bps

2. Adequately Capitalized
3. Undercapitalized

II
14 bps

Total Base Assessment Rates*

B

C

II
14 bps

III
23 bps

III
23 bps

Large and
Risk
Risk
Risk
Risk
Highly
Category Category Category Category Complex
I
II
III
IV
Institutions

IV
35 bps

Effective April 1, 2011, the initial base assessment rates are 5
to 35 basis points. An institution’s total assessment rate may
be less than or greater than its initial base assessment rate as a
result of additional risk adjustments.
The base assessment rates for small institutions in Risk
Category I are based on a combination of financial ratios and
CAMELS component ratings (the financial ratios method).
As required by Dodd-Frank, the calculation of risk-based
assessment rates for large institutions no longer relies on longterm debt issuer ratings. Rates for large institutions are based
on CAMELS ratings and certain forward-looking financial
measures combined into two scorecards—one for most large
institutions and another for the remaining very large institutions that are structurally and operationally complex or that
pose unique challenges and risks in case of failure (highly
complex institutions). In general, a highly complex institution is an institution (other than a credit card bank) with
more than $500 billion in total assets that is controlled by a
parent or intermediate parent company with more than $500
billion in total assets or a processing bank or trust company
with total fiduciary assets of $500 billion or more. The FDIC
retains its ability to take additional information into account
to make a limited adjustment to an institution’s total score
(the large bank adjustment), which will be used to determine
an institution’s initial base assessment rate.
Effective April 1, 2011, the three possible adjustments to
an institution’s initial base assessment rate are as follows:
(1) Unsecured Debt Adjustment: An institution’s rate may
decrease by up to 5 basis points for unsecured debt. The unsecured debt adjustment cannot exceed the lesser of 5 basis
points or 50 percent of an institution’s initial base assessment
rate (IBAR). Thus, for example, an institution with an IBAR
of 5 basis points would have a maximum unsecured debt
adjustment of 2.5 basis points and could not have a total base
assessment rate lower than 2.5 basis points. (2) Depository
Institution Debt Adjustment: For institutions that hold longterm unsecured debt issued by another insured depository
institution, a 50 basis point charge is applied to the amount
of such debt held in excess of 3 percent of an institution’s
Tier 1 capital. (3) Brokered Deposit Adjustment: Rates for
small institutions that are not in Risk Category I and for large
institutions that are not well capitalized or do not have a
composite CAMELS rating of 1 or 2 may increase (not to
exceed 10 basis points) if their brokered deposits exceed 10
percent of domestic deposits. After applying all possible
adjustments (excluding the Depository Institution Debt
Adjustment), minimum and maximum total base assessment
rates for each risk category are as follows:

FDIC Quarterly

Initial base
assessment rate

5–9

14

23

35

5–35

Unsecured debt
adjustment

-4.5–0

-5–0

-5–0

-5–0

-5–0

Brokered deposit
adjustment

—

0–10

0–10

0–10

0–10

Total Base
Assessment rate

2.5–9

9–24

18–33

30–45

2.5–45

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

Beginning in 2007, each institution is assigned a risk-based
rate for a quarterly assessment period near the end of the
quarter following the assessment period. Payment is generally
due on the 30th day of the last month of the quarter following the assessment period. Supervisory rating changes are
effective for assessment purposes as of the examination transmittal date.
Special Assessment – On May 22, 2009, the FDIC board
approved a final rule that imposed a 5 basis point special
assessment as of June 30, 2009. The special assessment was
levied on each insured depository institution’s assets minus
its Tier 1 capital as reported in its report of condition as of
June 30, 2009. The special assessment was collected
September 30, 2009, at the same time that the risk-based
assessment for the second quarter of 2009 was collected.
The special assessment for any institution was capped at
10 basis points of the institution’s assessment base for the
second quarter of 2009 risk-based assessment.
Prepaid Deposit Insurance Assessments – In November 2009,
the FDIC Board of Directors adopted a final rule requiring
insured depository institutions (except those that are
exempted) to prepay their quarterly risk-based deposit
insurance assessments for the fourth quarter of 2009, and
for all of 2010, 2011, and 2012, on December 30, 2009.
For regulatory capital purposes, an institution may assign a
zero-percent risk weight to the amount of its prepaid
deposit assessment asset. As required by the FDIC’s regulation establishing the prepaid deposit insurance assessment
program, this program ended with the final application of
prepaid assessments to the quarterly deposit insurance
assessments payable March 29, 2013. The FDIC issued
refunds of any unused prepaid deposit insurance assessments on June 28, 2013.
[Note: Effective January 1, 2014, a small number of “advanced
approach institutions” began reporting Tier 1 capital based on
regulatory capital standards approved by the banking agencies
in July 2013. For all other FDIC-insured institutions, prior
existing reporting will continue until January 2015 when
mandatory compliance for all institutions is scheduled to
begin. http://www.fdic.gov/regulations/capital/. At that time a
revised assessment rate schedule will be used to reflect the
changes in the regulatory capital rules. http://www.fdic.gov/
news/news/financial/2014/fil14037.html]

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Quarterly Banking Profile
Qualifying Subchapter S corporations and mutual institutions
issue unsecured subordinated debentures to the Treasury
Department through the SBLF. Depository institutions that
issued these debentures report them as “Subordinated notes
and debentures.” For regulatory capital purposes, the
debentures are eligible for inclusion in an institution’s Tier 2
capital in accordance with their primary federal regulator’s
capital standards. To participate in the SBLF Program, an
institution with outstanding securities issued to the Treasury
Department under the Capital Purchase Program (CPP) was
required to refinance or repay in full the CPP securities at the
time of the SBLF funding. Any outstanding warrants that an
institution issued to the Treasury Department under the CPP
remain outstanding after the refinancing of the CPP stock
through the SBLF Program unless the institution chooses to
repurchase them.
Subchapter S corporation – a Subchapter S corporation is treated as a pass-through entity, similar to a partnership, for federal income tax purposes. It is generally not subject to any
federal income taxes at the corporate level. This can have the
effect of reducing institutions’ reported taxes and increasing
their after-tax earnings.
Trust assets – market value, or other reasonably available
value of fiduciary and related assets, to include marketable
securities, and other financial and physical assets. Common
physical assets held in fiduciary accounts include real estate,
equipment, collectibles, and household goods. Such fiduciary
assets are not included in the assets of the financial
institution.
Unearned income & contra accounts – unearned income for Call
Report filers only.
Unused loan commitments – includes credit card lines, home
equity lines, commitments to make loans for construction,
loans secured by commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for
sale, which are accounted for as derivatives on the balance
sheet.)
Yield on earning assets – total interest, dividend, and fee
income earned on loans and investments as a percentage of
average earning assets.

Risk-weighted assets – assets adjusted for risk-based capital
definitions which include on-balance-sheet as well as off-­
balance-sheet items multiplied by risk-weights that range
from zero to 200 percent. A conversion factor is used to assign
a balance sheet equivalent amount for selected off-balancesheet accounts.
Securities – excludes securities held in trading accounts.
Banks’ securities portfolios consist of securities designated as
“held-to-maturity,” which are reported at amortized cost
(book value), and securities designated as “available-for-sale,”
reported at fair (market) value.
Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments
for income taxes. Thrift Financial Report (TFR) filers also
include gains (losses) on the sales of assets held for sale.
(TFR filers began filing Call Reports effective with the quarter ending March 31, 2012.)
Seller’s interest in institution’s own securitizations – the reporting
bank’s ownership interest in loans and other assets that have
been securitized, except an interest that is a form of recourse
or other seller-provided credit enhancement. Seller’s interests
differ from the securities issued to investors by the securitization structure. The principal amount of a seller’s interest is
generally equal to the total principal amount of the pool of
assets included in the securitization structure less the principal amount of those assets attributable to investors, i.e., in the
form of securities issued to investors.
Small Business Lending Fund – The Small Business Lending
Fund (SBLF) was enacted into law in September 2010 as part
of the Small Business Jobs Act of 2010 to encourage lending
to small businesses by providing capital to qualified
community institutions with assets of less than $10 billion.
The SBLF Program is administered by the U.S. Treasury
Department (http://www.treasury.gov/resource-center/
sb-programs/Pages/Small-Business-Lending-Fund.aspx).
Under the SBLF Program, the Treasury Department
purchased noncumulative perpetual preferred stock from
qualifying depository institutions and holding companies
(other than Subchapter S and mutual institutions). When
this stock has been issued by a depository institution, it is
reported as “Perpetual preferred stock and related surplus.”
For regulatory capital purposes, this noncumulative perpetual
preferred stock qualifies as a component of Tier 1 capital.

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2014, Volume 8, No. 4