Quarterly Banking Profile
 

SECOND QUARTER 2005 

•	 Lower Noninterest Income, Higher Expenses Hold Down Industry 

Earnings 

• Net Income Of $33.1 Billion Is Second-Highest Quarterly Total Ever 

•	 Net Interest Margins Decline At Large Institutions, Improve At Smaller 

Institutions 

•	 Commercial And Industrial Loan Growth Continues To Gain 

Momentum 

•	 Improving Trend In Asset Quality Persists, As Level Of Troubled 

Loans Reaches New Low 

Weaker Results at Large Banks Produce a Decline in Industry Profits 

Lower servicing fee income, lower trading revenue, and a large charge for litigation settlement 

expenses led to a decline in the net income earned by insured institutions in the second quarter. The 

8,868 commercial banks and savings institutions insured by the FDIC reported net income of $33.1 

billion, a decline of $1.1 billion (3.3 percent) from the record quarterly total in the first quarter. Industry 

earnings still represented the second-best quarterly performance ever reported, and were $2.0 billion 

(6.3 percent) above the level of the second quarter of 2004. The quarter-to-quarter decline was 

caused by lower earnings at a few large banks; for the industry as a whole, almost two out of every 

three institutions (62 percent) reported higher net income than in the first quarter, but five of the ten 

largest insured institutions saw their earnings decline. Servicing fees were $2.2 billion (43.9 percent) 

lower than in the first quarter, while trading revenue fell by $1.9 billion (43.3 percent). Noninterest 

expenses rose by $2.2 billion (2.9 percent) from the first quarter, including a $1.2-billion charge for 

litigation settlement costs. On the positive side, sales of securities and other assets yielded $2.3 

billion in gains, compared to $845 million in the first quarter and $1.6 billion in the second quarter of 

2004. Strong growth in interest-earning assets produced a $672-million (0.9-percent) increase in net 

interest income. Loan-loss provision expenses were $434 million (7.0 percent) higher than in the first 

quarter, but were still $722 million (9.8 percent) below the level of a year earlier. The industry’s return 

on assets (ROA) fell to 1.28 percent in the second quarter, from 1.35 percent in the first quarter and 

1.31 percent in the second quarter of 2004. More than half of all institutions (58 percent) had 

quarterly ROAs of 1 percent or better, and only 5.6 percent of insured institutions reported a net loss 

for the quarter. 

Rising Funding Costs Erode Margins at Larger Institutions 

Short-term interest rates rose during the second quarter, with different results at large and smaller 

institutions. Large institutions rely more heavily on short-term borrowings to fund their assets, and 

their funding costs increase more than other institutions’ when short rates rise. At institutions with 

more than $10 billion in assets, the average net interest margin declined by 9 basis points in the 

second quarter. At all other institutions, funding costs did not rise as rapidly as asset yields, and the 

average margin improved by 7 basis points. However, the 114 insured commercial banks and savings 

institutions with more than $10 billion in assets hold almost three quarters of all industry assets (73.6 

percent), so the decline in their margins caused a 4 basis-point decline in the overall industry margin. 

At 3.49 percent, the industry margin is at its lowest level since the third quarter of 1990. 

FEDERAL DEPOSIT INSURANCE CORPORATION	 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

Loan Losses Continue Trending Downward 

Insured banks and thrifts charged-off $6.7 billion in the second quarter, a decline of $493 million (6.9 

percent) from the first quarter, and $1.5 billion (18.2 percent) less than they charged-off in the second 

quarter of 2004. This is the smallest amount of loan losses in a quarter since the third quarter of 2000, 

and the quarterly net charge-off rate of 0.42 percent is the lowest since the first quarter of 1995. The 

drop in loan losses from first-quarter levels stemmed from improvements in consumer loan portfolios. 

Net charge-offs of credit-card loans were $343 million (7.9 percent) lower than in the first quarter, and 

net charge-offs of other nonmortgage loans to individuals were $127 million (8.5 percent) lower. No 

loan categories had significant increases in net charge-offs. Compared to the second quarter of 2004, 

charge-offs of loans to commercial and industrial borrowers registered the greatest improvement, a 

$633-million (46.9-percent) decline. 

Noncurrent Loans Decline for Eleventh Consecutive Quarter 

The amount of loans that were noncurrent (90 days or more past due or in nonaccrual status) declined 

by $427 million (0.9 percent) during the second quarter. This is the eleventh quarter in a row that 

noncurrent loans have declined. They are now $23.1 billion (33.5 percent) below the most recent peak 

level of $68.9 billion, reached in the third quarter of 2002. At midyear, noncurrent loans and leases 

represented 0.71 percent of all loans and leases, the lowest level registered since insured banks and 

thrifts began reporting noncurrent loan data in 1984, and the fifth quarter in a row that this ratio has set a 

new record low. Noncurrent C&I loans fell by $678 million (6.5 percent) during the quarter. Noncurrent 

credit-card loans declined by $354 million (5.5 percent), and noncurrent commercial real estate loans 

dropped by $225 million (4.3 percent). The amount of residential mortgage loans that were noncurrent 

increased by $1.1 billion (8.9 percent), with all of the growth occurring at two institutions. 

Reserve Ratio Falls to 19-year Low 

The industry’s reserves for loan losses declined for the sixth quarter in a row and the seventh time in the 

past eight quarters, as large banks added fewer dollars to reserves in loss provisions than they took out 

in charge-offs. The $652-million decline in reserves, combined with a $204-billion increase in loans, 

caused the industry’s ratio of reserves to total loans to drop from 1.28 percent to 1.23 percent. This is 

the lowest level for this ratio since the first quarter of 1986. Since reaching an all-time high of $85.9 

billion two years ago, the industry’s reserves for loan losses have fallen by $6.9 billion (8.0 percent). 

The main impetus behind the downward trend in reserves has been the steady improvement in asset 

quality, particularly at larger banks. As the reserve ratio has fallen, the industry’s “coverage ratio” of 

reserves to noncurrent loans has improved. At midyear, insured institutions had $1.73 in reserves for 

every $1.00 of noncurrent loans, the highest level for this ratio in six years. 

Retained Earnings, Securities Appreciation Boost Equity Capital 

Equity capital increased by $30.6 billion (2.9 percent) during the second quarter, as the industry’s equity 

capital ratio reached its highest level — 10.38 percent of total assets — since 1938. Retained earnings 

of $14.8 billion were $2.0 billion (15.6 percent) above the level of a year ago, and were the largest 

contributor to the capital increase. An $11.6-billion increase in unrealized gains on securities held for 

sale, caused by higher market values in institutions’ fixed-rate securities portfolios, was another major 

contributor to equity growth. The improvement in equity capital was widespread. Almost two out of 

every three institutions (63.3 percent) reported increases in their equity capital ratios during the second 

quarter. 

Loan Growth Is Second-highest Quarterly Total Ever 

Strong demand in construction lending, residential real estate, and C&I loans helped the industry grow 

its total loan portfolio by $204 billion (3.3 percent). This is the second-largest quarterly increase ever, 

after the $235-billion increase in total loans and leases in the second quarter of 2004. Residential 

mortgage loans increased by $65.8 billion (3.5 percent) during the quarter, while home equity lines of 

credit grew by $25.9 billion (5.1 percent). C&I loans grew by a record $42.4 billion (4.2 percent), and 

real estate construction and development loans were up by $30.1 billion (8.4 percent). Data reported by 

insured commercial banks show that a large share of the recent growth in residential mortgage loans has 

consisted of adjustable-rate mortgages (ARMs), although the last two quarters have seen a shift toward 

fixed-rate mortgages. During the second quarter, ARMs accounted for 47.9 percent ($16.4 billion) of the 

SECOND QUARTER 2005 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

increase in residential mortgage loans at commercial banks. Over the last four quarters, almost twothirds (65.4 percent) of the increase in residential mortgage loans at commercial banks has come from 

ARMs. Annual data on loans to small businesses and farms reported as of each June 30 show that 

lending to larger borrowers outstripped lending to smaller borrowers during the past 12 months. 

Between June 30 2004 and June 30 2005, C&I loans in amounts of $1 million or less increased by 3.7 

percent, while larger C&I loans grew by 17.6 percent. Commercial real estate loans of less than $1 

million increased by 4.7 percent, while larger commercial real estate loans grew by 11.8 percent. 

Agricultural production loans and real estate loans secured by farmland in amounts of $500 thousand or 

less were up by 2.6 percent, while larger loans to agricultural borrowers rose by 9.5 percent. 

Deposit Growth Fails to Keep Pace with Increase in Loans 

Total deposits of insured institutions increased by $112.2 billion (1.7 percent) during the quarter, while 

nondeposit liabilities grew by $45.2 billion (1.8 percent). The industry’s loan-to-deposit ratio rose from 

91.2 percent to 92.7 percent, its highest level since the first quarter of 2001. For a second consecutive 

quarter, insured (smaller denomination) deposits in domestic offices grew by a larger amount than 

uninsured (large denomination) deposits. Prior to this year, uninsured deposit growth had exceeded 

growth in insured deposits in 10 of the previous 11 quarters. 

Merger Produces First Trillion-dollar Bank 

The number of FDIC-insured commercial banks and savings institutions reporting financial results 

declined by 63 in the second quarter. During the quarter, 44 new charters were added, while 105 

insured institutions were absorbed into other institutions. One of these mergers, between Bank of 

America and Fleet Bank, resulted in the first FDIC-insured institution with more than $1 trillion in total 

assets (their parent holding companies merged in 2004). As of June 30, Bank of America reported total 

assets of $1.048 trillion. No institutions failed during the second quarter. It has now been more than 

four quarters since the last failure of an FDIC-insured bank or thrift. This is the longest interval without a 

bank failure since the 15-month period from August 1996 through October 1997. Four mutually-owned 

savings institutions, with total assets of $2.1 billion, converted to stock ownership in the second quarter. 

The number of institutions on the FDIC’s “Problem List” continued to decline, dropping from 80 to 74, 

while assets of “problem” institutions declined from $28.2 billion to $21.7 billion. The number of 

“problem” institutions at midyear is the lowest total reached in the 36 years for which these data are 

available. 

ALL FDIC-INSURED INSTITUTIONS SECOND QUARTER 2005 
2000 

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/assisted institutions ......................................
 

2005** 2004** 2004 2003 2002 2001 

1.31 

12.68 

8.26 

0.48 

0.44 

8.56 

3.51 

10.57 

8,868 

7,549 

1,319 

5.49 

74 

$22 

0 

1.33 

14.21 

8.05 

0.60 

0.60 

8.13 

3.61 

9.62 

9,078 

7,694 

1,384 

5.57 

102 

$26 

4 

1.29 

13.27 

8.12 

0.53 

0.56 

11.34 

3.53 

4.35 

8,975 

7,630 

1,345 

5.93 

80 

$28 

4 

1.38 

15.04 

7.88 

0.75 

0.78 

7.58 

3.73 

15.99 

9,181 

7,770 

1,411 

5.98 

116 

$30 

3 

1.30 1.14 1.14 

14.11 12.96 13.53 

7.86 7.78 7.71 

0.90 0.87 0.71 

0.97 0.83 0.59 

7.20 5.44 8.41 

3.96 3.78 3.77 

18.45 -0.98 1.71 

9,354 9,614 9,904 

7,888 8,080 8,315 

1,466 1,534 1,589 

6.67 8.24 7.53 

136 114 94 

$39 $40 $24 

11 4 7 

* Excludes insured branches of foreign banks (IBAs)
 

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

TABLE II-A. Aggregate Condition and Income Data, All FDIC-Insured Institutions 

(dollar figures in millions) 

Number of institutions reporting .............................................................................................. . ...

2005 2005 2004 04:2-05:2 

2nd Quarter 1st Quarter 2nd Quarter %Change 

8,868 8,931 9,078 -2.3 

Total employees (full-time equivalent) ....................................................................................... 

CONDITION DATA 

2,130,247 2,104,618 2,100,293 1.4 

Total assets ................................................................................................................................ $10,474,300 $10,286,342 $9,648,545 8.6 

Loans secured by real estate .................................................................................................. 3,932,209 3,787,736 3,429,330 14.7 

1-4 Family residential mortgages ......................................................................................... 1,952,586 1,886,828 1,744,027 12.0 

Commercial real estate ........................................................................................................ . 782,252 767,066 718,676 8.8 

Construction and development ............................................................................................. . 389,200 359,079 299,498 30.0 

Home equity lines ................................................................................................................ 533,792 507,924 415,792 28.4 

Commercial & industrial loans ................................................................................................ 1,043,129 1,000,769 926,083 12.6 

Loans to individuals ................................................................................................................ 907,669 907,814 846,060 7.3 

Credit cards .......................................................................................................................... 366,447 364,060 322,799 13.5 

Farm loans .................................................................................................................... . .......... 48,338 45,437 47,281 2.2 

Other loans & leases ............................................................................................................... 476,847 462,329 537,411 -11.3 

Less: Unearned income ......................................................................................................... . . 3,083 3,077 3,067 0.5 

Total loans & leases ................................................................................................................ 6,405,108 6,201,009 5,783,099 10.8 

Less: Reserve for losses ......................................................................................................... 79,068 79,719 83,999 -5.9 

Net loans and leases .............................................................................................................. 6,326,040 6,121,289 5,699,100 11.0 

Securities .................................................................................................................... . ............. 1,889,406 1,888,517 1,874,571 0.8 

Other real estate owned .......................................................................................................... 4,091 4,243 4,957 -17.5 

Goodwill and other intangibles ................................................................................................ 322,357 325,904 240,387 34.1 

All other assets ....................................................................................................................... 1,932,405 1,946,388 1,829,530 5.6 

Total liabilities and capital ................................................................................................. . ......... 10,474,300 10,286,342 9,648,545 8.6 

Deposits ...................................................................................................................... . ............ 6,820,943 6,708,778 6,290,153 8.4 

Domestic office deposits ...................................................................................................... . 5,925,774 5,827,158 5,462,523 8.5 

Foreign office deposits ......................................................................................................... 895,168 881,620 827,631 8.2 

Other borrowed funds .......................................................................................................... . .... 2,016,257 1,957,427 1,931,627 4.4 

Subordinated debt .................................................................................................................. 123,091 122,515 110,532 11.4 

All other liabilities .......................................................................................................... . .......... 427,115 441,311 399,169 7.0 

Equity capital ........................................................................................................................... 1,086,893 1,056,310 917,063 18.5 

Loans and leases 30-89 days past due ..................................................................................... 48,151 49,474 46,751 3.0 

Noncurrent loans and leases ...................................................................................................... 45,816 46,243 51,502 -11.0 

Restructured loans and leases ................................................................................................... 3,152 2,537 2,442 29.1 

Direct and indirect investments in real estate ............................................................................. 908 872 775 17.2 

Mortgage-backed securities .................................................................................................... . ... 1,141,359 1,142,360 1,073,556 6.3 

Earning assets ........................................................................................................................... 9,142,099 8,967,337 8,426,852 8.5 

FHLB Advances ................................................................................................................. . ........ 584,883 545,788 534,878 9.3 

Unused loan commitments ......................................................................................................... 6,681,216 6,484,647 6,184,712 8.0 

Trust assets ................................................................................................................................ 15,538,921 15,160,390 13,904,030 11.8 

Assets securitized and sold*** .................................................................................................... 971,240 916,206 863,539 12.5 

Notional amount of derivatives*** ............................................................................................... 96,943,486 91,861,153 81,711,649 18.6 

INCOME DATA 2005 2004 %Change 2005 2004 04:2-05:2

First Half First Half 2nd Quarter 2nd Quarter %Change 

Total interest income ...................................................................................................... $246,419 $205,044 20.2 $126,753 $105,085 20.6 

Total interest expense .................................................................................................... 89,127 58,132 53.3 47,678 29,640 60.9 

Net interest income ..................................................................................................... . 157,291 146,912 7.1 79,075 75,445 4.8 

Provision for loan and lease losses ................................................................................ 12,809 14,793 -13.4 6,625 7,347 -9.8 

Total noninterest income ................................................................................................ 109,691 104,204 5.3 54,408 53,624 1.5 

Total noninterest expense .............................................................................................. 157,000 148,480 5.7 79,734 76,967 3.6 

Securities gains (losses) ................................................................................................ . 3,100 4,187 -26.0 2,256 1,645 37.2 

Applicable income taxes ................................................................................................. 32,921 30,115 9.3 16,255 15,272 6.4 

Extraordinary gains, net ................................................................................................. . 12 214 -94.4 7 28 -76.2 

Net income .................................................................................................................. 67,364 62,128 8.4 33,131 31,155 6.3 

From international operations ................................................................................... . 5,520 6,588 -16.2 3,105 3,905 -20.5 

Net charge-offs ............................................................................................................... 13,856 16,575 -16.4 6,684 8,174 -18.2 

Cash dividends ............................................................................................................... 33,652 31,879 5.6 18,295 18,322 -0.1 

Retained earnings .......................................................................................................... . 33,712 30,249 11.5 14,836 12,834 15.6 

Net operating income .................................................................................................. 65,287 59,048 10.6 31,646 30,014 5.4 

*** Call Report filers only. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE III-A. Second Quarter 2005, All FDIC-Insured Institutions 

SECOND QUARTER 

(The way it is...) 

Number of institutions reporting ............................. 

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,868 29 6 1,731 4,546 953 118 422 1,004 59 

Commercial banks .............................................. 7,549 26 6 1,726 4,128 238 91 372 914 48 

Savings institutions ............................................. 1,319 3 0 5 418 715 27 50 90 11 

Total assets (in billions) ......................................... $10,474.3 $372.3 $1,927.3 $139.0 $3,648.1 $1,642.0 $146.2 $49.9 $127.3 $2,422.2 

Commercial banks .............................................. 8,724.6 361.4 1,927.3 138.5 3,258.5 417.0 89.9 40.3 107.5 2,384.3 

Savings institutions ............................................. 1,749.7 10.9 0.0 0.6 389.6 1,225.0 56.3 9.6 19.8 37.9 

Total deposits (in billions) ...................................... 6,820.9 115.5 1,171.4 112.1 2,632.0 946.1 84.1 36.6 104.0 1,619.1 

Commercial banks .............................................. 5,794.7 114.0 1,171.4 111.7 2,377.6 251.6 50.1 29.5 88.5 1,600.5 

Savings institutions ............................................. 1,026.2 1.5 0.0 0.4 254.5 694.5 34.0 7.2 15.5 18.6 

Net income (in millions) ......................................... 33,131 2,925 3,403 466 12,163 4,897 530 200 346 8,202 

Commercial banks .............................................. 27,988 2,811 3,403 465 11,021 1,412 318 146 310 8,102 

Savings institutions ............................................. 

Performance Ratios (annualized,%) 

5,144 113 0 1 1,141 3,485 212 54 36 100 

Yield on earning assets ......................................... 5.60 11.40 4.89 6.02 5.79 5.21 6.76 4.63 5.62 5.19 

Cost of funding earning assets .............................. 2.11 2.98 2.31 1.90 1.93 2.33 2.53 1.57 1.76 1.95 

Net interest margin ............................................. 3.49 8.43 2.57 4.13 3.86 2.87 4.23 3.06 3.86 3.24 

Noninterest income to assets ................................ 2.10 10.24 2.66 0.69 1.50 1.14 2.15 6.92 1.19 1.97 

Noninterest expense to assets .............................. 3.07 9.06 3.59 2.72 2.85 2.11 2.91 7.22 3.20 2.66 

Loan and lease loss provision to assets ................ 0.26 3.49 0.21 0.13 0.17 0.06 0.80 0.02 0.18 0.04 

Net operating income to assets ............................. 1.22 2.98 0.69 1.35 1.34 1.04 1.35 1.57 1.07 1.30 

Pretax return on assets .......................................... 1.90 4.92 1.02 1.65 1.96 1.87 2.16 2.43 1.39 2.09 

Return on assets .................................................... 1.28 3.18 0.71 1.35 1.35 1.22 1.40 1.61 1.09 1.36 

Return on equity .................................................... 12.35 14.56 8.41 12.39 13.46 11.22 10.73 8.80 9.97 13.83 

Net charge-offs to loans and leases ...................... 0.42 4.18 0.66 0.14 0.21 0.09 1.11 0.38 0.33 0.17 

Loan and lease loss provision to net charge-offs .. 99.12 112.25 76.97 142.27 117.58 93.42 96.19 25.39 95.38 43.31 

Efficiency ratio ....................................................... 58.22 49.39 73.32 60.03 56.21 55.40 49.31 73.42 67.19 55.10 

% of unprofitable institutions .................................. 5.55 6.90 0.00 2.20 6.29 5.98 1.69 15.64 3.88 3.39 

% of institutions with earnings gains ...................... 

Structural Changes 

64.19 51.72 33.33 57.94 72.37 57.29 55.08 45.73 53.78 64.41 

New Charters ...................................................... 44 0 0 0 18 2 0 24 0 0 

Institutions absorbed by mergers ........................ 105 0 0 4 64 7 0 1 0 29 

Failed Institutions ................................................ 

PRIOR SECOND QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 

Return on assets (%) ................................... 2004 1.31 4.08 0.68 1.27 1.36 1.21 1.54 1.28 1.10 1.33 

............................. 2002 1.37 3.68 1.17 1.30 1.28 1.28 1.60 1.69 1.20 1.35 

............................. 2000 0.98 2.16 0.99 1.35 0.92 0.90 1.20 1.99 1.17 0.63 

Net charge-offs to loans & leases (%) ......... 2004 0.58 5.08 0.99 0.18 0.32 0.11 1.15 0.41 0.29 0.31 

............................. 2002 0.94 5.78 1.48 0.30 0.73 0.17 1.00 0.67 0.31 0.70 

............................. 2000 0.51 3.68 0.47 0.19 0.41 0.11 0.13 0.37 0.25 0.51 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE III-A. Second Quarter 2005, All FDIC-Insured Institutions 

SECOND QUARTER 

(The way it is...) 

Number of institutions reporting ............................... 

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,868 3,996 4,266 492 114 1,109 1,214 1,897 2,079 1,812 757 

Commercial banks ................................................ 7,549 3,571 3,524 370 84 586 1,069 1,557 1,973 1,686 678 

Savings institutions ............................................... 1,319 425 742 122 30 523 145 340 106 126 79 

Total assets (in billions) ............................................ $10,474.3 $207.5 $1,209.7 $1,351.2 $7,705.9 $2,729.8 $2,579.4 $2,426.9 $765.3 $570.0 $1,402.8 

Commercial banks ................................................ 8,724.6 185.7 968.0 992.5 6,578.4 2,142.7 2,418.8 2,279.1 721.0 478.7 684.3 

Savings institutions ............................................... 1,749.7 21.8 241.7 358.7 1,127.5 587.1 160.6 147.8 44.3 91.3 718.5 

Total deposits (in billions) ......................................... 6,820.9 170.9 964.5 921.4 4,764.1 1,784.9 1,735.6 1,516.2 547.0 424.9 812.2 

Commercial banks ................................................ 5,794.7 154.2 782.6 691.1 4,166.8 1,408.4 1,630.6 1,412.1 518.9 374.4 450.4 

Savings institutions ............................................... 1,026.2 16.7 181.9 230.3 597.3 376.6 105.0 104.1 28.2 50.6 361.8 

Net income (in millions) ............................................ 33,131 560 3,705 4,478 24,388 8,666 8,458 5,622 2,963 1,798 5,624 

Commercial banks ................................................ 27,988 484 3,188 3,485 20,830 7,010 8,096 5,319 2,876 1,522 3,165 

Savings institutions ............................................... 

Performance Ratios (annualized,%) 

5,144 76 517 992 3,558 1,656 361 304 87 276 2,459 

Yield on earning assets ............................................ 5.60 5.99 6.07 5.81 5.47 5.69 5.29 5.10 6.29 5.94 6.28 

Cost of funding earning assets ................................. 2.11 1.77 1.95 2.03 2.16 2.25 2.03 2.16 1.82 1.94 2.09 

Net interest margin ................................................ 3.49 4.22 4.12 3.78 3.31 3.43 3.26 2.94 4.46 4.01 4.19 

Noninterest income to assets ................................... 2.10 1.36 1.22 1.67 2.33 2.52 1.77 1.98 2.82 1.50 1.92 

Noninterest expense to assets ................................. 3.07 3.65 3.15 3.07 3.04 3.29 2.58 3.11 4.10 3.23 2.86 

Loan and lease loss provision to assets .................. 0.26 0.19 0.20 0.20 0.28 0.38 0.09 0.09 0.38 0.17 0.57 

Net operating income to assets ................................ 1.22 1.07 1.22 1.23 1.22 1.23 1.26 0.91 1.53 1.26 1.47 

Pretax return on assets ............................................ 1.90 1.43 1.69 2.01 1.93 1.91 2.02 1.32 2.29 1.73 2.53 

Return on assets ...................................................... 1.28 1.09 1.24 1.35 1.27 1.29 1.32 0.93 1.55 1.28 1.63 

Return on equity ....................................................... 12.35 9.02 12.13 12.44 12.47 12.09 13.30 10.00 14.50 13.33 13.10 

Net charge-offs to loans and leases ......................... 0.42 0.18 0.19 0.23 0.51 0.69 0.18 0.26 0.51 0.23 0.63 

Loan and lease loss provision to net charge-offs ..... 99.12 166.50 157.98 127.19 92.07 98.95 86.53 60.59 102.07 123.36 121.46 

Efficiency ratio .......................................................... 58.22 69.27 62.42 58.87 57.17 57.89 54.91 67.44 59.20 62.59 48.85 

% of unprofitable institutions .................................... 5.55 9.83 1.97 3.05 0.00 6.40 8.07 4.01 3.70 5.68 8.85 

% of institutions with earnings gains ........................ 

Structural Changes 

64.19 57.81 68.96 74.19 65.79 64.29 73.06 62.05 57.96 64.07 72.52 

New Charters ........................................................ 44 39 3 1 1 6 10 4 6 6 12 

Institutions absorbed by mergers .......................... 105 32 61 8 4 14 19 38 19 12 3 

Failed Institutions .................................................. 

PRIOR SECOND QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%) ..................................... 2004 1.31 0.98 1.17 1.46 1.32 1.08 1.40 1.36 1.53 1.31 1.59 

............................ 2002 1.37 1.06 1.20 1.38 1.42 1.25 1.35 1.35 1.60 1.50 1.57 

............................ 2000 0.98 1.14 1.20 1.08 0.90 1.12 0.41 0.92 1.45 1.12 1.30 

Net charge-offs to loans & leases (%) ........... 2004 0.58 0.23 0.23 0.45 0.68 0.85 0.32 0.41 0.76 0.39 0.61 

............................ 2002 0.94 0.31 0.35 0.73 1.16 1.40 0.72 0.73 1.21 0.39 0.83 

............................ 2000 0.51 0.27 0.27 0.52 0.58 0.63 0.43 0.31 0.74 0.33 0.65 

* See Table IV-A (page 9) for explanations. 
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TABLE IV-A. First Half 2005, All FDIC-Insured Institutions 

FIRST HALF 

(The way it is...) 

Number of institutions reporting ............................. 

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

InternationalBanks Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

ConsumerLenders 

Other 

Specialized -

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,868 29 6 1,731 4,546 953 118 422 1,004 59 

Commercial banks .............................................. 7,549 26 6 1,726 4,128 238 91 372 914 48 

Savings institutions ............................................. 1,319 3 0 5 418 715 27 50 90 11 

Total assets (in billions) ......................................... $10,474.3 $372.3 $1,927.3 $139.0 $3,648.1 $1,642.0 $146.2 $49.9 $127.3 $2,422.2 

Commercial banks .............................................. 8,724.6 361.4 1,927.3 138.5 3,258.5 417.0 89.9 40.3 107.5 2,384.3 

Savings institutions ............................................. 1,749.7 10.9 0.0 0.6 389.6 1,225.0 56.3 9.6 19.8 37.9 

Total deposits (in billions) ...................................... 6,820.9 115.5 1,171.4 112.1 2,632.0 946.1 84.1 36.6 104.0 1,619.1 

Commercial banks .............................................. 5,794.7 114.0 1,171.4 111.7 2,377.6 251.6 50.1 29.5 88.5 1,600.5 

Savings institutions ............................................. 1,026.2 1.5 0.0 0.4 254.5 694.5 34.0 7.2 15.5 18.6 

Net income (in millions) .......................................... 67,364 5,905 7,785 903 23,720 9,565 1,010 393 723 17,360 

Commercial banks .............................................. 57,439 5,745 7,785 901 21,622 2,730 556 294 648 17,157 

Savings institutions ............................................. 

Performance Ratios (annualized,%)

9,925 160 0 2 2,098 6,834 454 98 75 204 

Yield on earning assets .......................................... 5.50 11.03 4.82 5.89 5.68 5.08 6.81 4.54 5.55 5.10 

Cost of funding earning assets .............................. 1.99 2.78 2.22 1.81 1.82 2.19 2.44 1.50 1.69 1.82 

Net interest margin .............................................. 3.51 8.25 2.60 4.08 3.85 2.90 4.37 3.04 3.86 3.29 

Noninterest income to assets ................................. 2.13 10.12 2.80 0.68 1.48 1.14 2.04 6.85 1.25 2.03 

Noninterest expense to assets ............................... 3.05 9.05 3.46 2.71 2.85 2.09 2.89 7.18 3.23 2.67 

Loan and lease loss provision to assets ................ 0.25 3.22 0.22 0.13 0.17 0.06 0.88 0.04 0.15 0.03 

Net operating income to assets ............................. 1.27 2.99 0.85 1.31 1.32 1.07 1.31 1.54 1.12 1.39 

Pretax return on assets .......................................... 1.95 4.96 1.19 1.60 1.94 1.86 2.07 2.39 1.44 2.20 

Return on assets .................................................... 1.31 3.19 0.81 1.31 1.34 1.21 1.35 1.59 1.14 1.45 

Return on equity ..................................................... 12.68 14.92 9.67 12.05 13.37 11.12 9.96 8.62 10.40 14.65 

Net charge-offs to loans and leases ...................... 0.44 4.26 0.70 0.13 0.21 0.09 1.16 0.30 0.29 0.17 

Loan and lease loss provision to net charge-offs ... 92.44 100.40 72.79 155.03 118.38 93.57 101.42 53.76 89.25 32.26 

Efficiency ratio ........................................................ 57.35 50.18 68.55 60.66 56.43 54.51 48.68 73.90 67.09 54.24 

% of unprofitable institutions .................................. 5.49 6.90 0.00 2.08 6.40 5.67 2.54 15.64 3.19 5.08 

% of institutions with earnings gains ...................... 

Condition Ratios(%) 

64.49 62.07 33.33 59.68 72.66 57.61 51.69 45.26 52.69 55.93 

Earning assets to total assets ................................ 

Loss Allowance to: 

87.28 82.02 82.59 92.28 89.72 91.78 86.90 88.33 91.93 84.56 

Loans and leases ................................................ 1.23 4.34 1.56 1.42 1.23 0.48 1.52 1.48 1.28 1.02 

Noncurrent loans and leases .............................. 

Noncurrent assets plus 

172.58 273.74 130.60 157.80 203.68 94.16 276.94 188.05 145.90 162.68 

other real estate owned to assets ....................... 0.48 1.17 0.53 0.68 0.48 0.41 0.44 0.26 0.60 0.37 

Equity capital ratio .................................................. 10.38 21.70 8.46 10.97 10.09 10.89 12.08 18.41 11.06 9.91 

Core capital (leverage) ratio ................................... 8.26 17.03 6.46 10.57 8.50 9.31 8.50 15.56 10.73 6.86 

Tier 1 risk-based capital ratio ................................. 10.82 15.94 8.73 14.79 10.11 15.83 10.84 35.66 17.84 9.09 

Total risk-based capital ratio .................................. 13.18 18.52 12.18 15.90 12.13 17.27 12.75 36.81 19.07 11.72 

Net loans and leases to deposits ........................... 92.74 228.28 68.50 79.38 95.24 123.12 129.38 34.58 68.28 80.72 

Net loans to total assets ......................................... 60.40 70.81 41.63 64.02 68.72 70.94 74.42 25.42 55.74 53.95 

Domestic deposits to total assets .......................... 

Structural Changes 

56.57 27.18 30.19 80.65 70.02 57.19 56.81 71.95 81.64 58.38 

New Charters ...................................................... 77 0 0 1 24 4 0 47 1 0 

Institutions absorbed by mergers ........................ 182 3 0 11 116 11 0 5 5 32 

Failed Institutions ................................................ 

PRIOR FIRST HALVES 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 

Number of institutions ................................... 2004 9,078 36 6 1,775 4,350 997 144 488 1,195 87 

................................ 2002 9,466 47 6 1,892 4,079 1,168 216 440 1,526 92 

................................ 2000 10,102 61 7 2,086 3,929 1,325 315 521 1,776 82 

Total assets (in billions) ............................. 2004 $9,648.5 $334.4 $1,554.5 $135.7 $3,031.1 $1,402.0 $160.7 $57.1 $155.6 $2,817.4 

................................ 2002 8,039.0 299.4 1,294.8 123.3 3,356.5 1,191.8 163.2 48.4 189.7 1,371.8 

................................ 2000 7,163.6 265.4 1,125.5 122.2 3,754.2 1,018.4 84.2 50.3 209.6 533.9 

Return on assets (%) .................................... 2004 1.33 3.97 0.89 1.26 1.35 1.22 1.58 1.36 1.10 1.29 

................................ 2002 1.34 3.44 0.99 1.28 1.30 1.29 1.52 1.31 1.19 1.33 

................................ 2000 1.13 2.51 1.15 1.31 1.09 1.01 1.19 1.98 1.17 0.77 

Net charge-offs to loans & leases (%) .......... 2004 0.60 5.03 1.13 0.15 0.32 0.12 1.29 0.50 0.27 0.29 

................................ 2002 0.96 6.42 1.49 0.24 0.67 0.16 1.04 0.51 0.28 0.76 

................................ 2000 

Noncurrent assets plus 

0.51 3.80 0.48 0.16 0.39 0.12 0.18 0.46 0.21 0.50 

OREO to assets (%) .................................. 2004 0.60 1.33 0.75 0.80 0.59 0.58 0.79 0.30 0.64 0.43 

................................ 2002 0.91 1.54 1.16 0.94 0.89 0.66 1.22 0.35 0.68 0.82 

................................ 2000 0.65 1.42 0.68 0.76 0.65 0.46 0.97 0.28 0.56 0.57 

Equity capital ratio (%) .................................. 2004 9.50 18.01 7.18 10.52 9.35 8.65 7.99 16.25 10.38 10.23 

................................ 2002 9.25 15.64 7.20 10.82 9.62 9.10 8.56 17.55 10.53 8.46 

................................ 2000 8.37 13.04 6.74 10.27 8.44 7.92 8.13 15.45 10.03 8.07 

*Asset Concentration Group Definitions (Groups are hierarchical and mutually exclusive): 

Credit-card Lenders - Institutions whose credit-card loans plus securitized receivables exceed 50 percent of total assets plus securitized receivables.
 

International Banks - Banks with assets greater than $10 billion and more than 25 percent of total assets in foreign offices.
 

Agricultural Banks - Banks whose agricultural production loans plus real estate loans secured by farmland exceed 25 percent of their total loans and leases.
 

Commercial Lenders - Institutions whose commercial and industrial loans, plus real estate construction and development loans, plus loans
 

secured by commercial real estate properties exceed 25 percent of total assets. 

Mortgage Lenders - Institutions whose residential mortgage loans, plus mortgage-backed securities, exceed 50 percent of total assets. 

Consumer Lenders - Institutions whose residential mortgage loans, plus credit-card loans, plus other loans to individuals, exceed 50 percent of total assets. 

Other Specialized < $1 Billion - Institutions with assets less than $1 billion, whose loans and leases are less than 40 percent of total assets. 

All Other < $1 billion - Institutions with assets less than $1 billion that do not meet any of the definitions above, they have significant lending 

activity with no identified asset concentrations. 

All Other > $1 billion - Institutions with assets greater than $1 billion that do not meet any of the definitions above, they have significant lending 

activity with no identified asset concentrations. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE IV-A. First Half 2005, All FDIC-Insured Institutions 

FIRST HALF 

(The way it is...) 

Number of institutions reporting ............................. 

All 

Insured 

Institutions 

Asset Size Distribution 

Less 

than $100 

Million 

$100 

Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion Chicago 

Kansas 

City Dallas 

San 

Francisco 

Geographic Regions* 

New York Atlanta 

8,868 3,996 4,266 492 114 1,109 1,214 1,897 2,079 1,812 757 

Commercial banks .............................................. 7,549 3,571 3,524 370 84 586 1,069 1,557 1,973 1,686 678 

Savings institutions ............................................. 1,319 425 742 122 30 523 145 340 106 126 79 

Total assets (in billions) ......................................... $10,474.3 $207.5 $1,209.7 $1,351.2 $7,705.9 $2,729.8 $2,579.4 $2,426.9 $765.3 $570.0 $1,402.8 

Commercial banks .............................................. 8,724.6 185.7 968.0 992.5 6,578.4 2,142.7 2,418.8 2,279.1 721.0 478.7 684.3 

Savings institutions ............................................. 1,749.7 21.8 241.7 358.7 1,127.5 587.1 160.6 147.8 44.3 91.3 718.5 

Total deposits (in billions) ...................................... 6,820.9 170.9 964.5 921.4 4,764.1 1,784.9 1,735.6 1,516.2 547.0 424.9 812.2 

Commercial banks .............................................. 5,794.7 154.2 782.6 691.1 4,166.8 1,408.4 1,630.6 1,412.1 518.9 374.4 450.4 

Savings institutions ............................................. 1,026.2 16.7 181.9 230.3 597.3 376.6 105.0 104.1 28.2 50.6 361.8 

Net income (in millions) ......................................... 67,364 1,090 7,266 8,783 50,225 17,080 17,698 11,705 6,170 3,555 11,156 

Commercial banks .............................................. 57,439 954 6,265 6,841 43,378 13,875 16,877 11,131 6,059 2,979 6,518 

Savings institutions ............................................. 

Performance Ratios (annualized,%) 

9,925 136 1,000 1,942 6,847 3,205 821 574 112 576 4,638 

Yield on earning assets ......................................... 5.50 5.85 5.93 5.65 5.38 5.54 5.27 5.04 6.16 5.77 6.10 

Cost of funding earning assets .............................. 1.99 1.69 1.85 1.91 2.03 2.12 1.92 2.08 1.71 1.81 1.94 

Net interest margin ............................................. 3.51 4.16 4.08 3.74 3.35 3.42 3.35 2.96 4.45 3.96 4.16 

Noninterest income to assets ................................ 2.13 1.31 1.22 1.67 2.38 2.54 1.80 2.03 2.95 1.50 1.93 

Noninterest expense to assets .............................. 3.05 3.61 3.15 3.06 3.02 3.31 2.62 3.01 4.10 3.19 2.80 

Loan and lease loss provision to assets ................ 0.25 0.17 0.18 0.20 0.27 0.37 0.07 0.10 0.39 0.18 0.55 

Net operating income to assets ............................. 1.27 1.05 1.20 1.23 1.29 1.23 1.33 1.00 1.60 1.26 1.52 

Pretax return on assets .......................................... 1.95 1.39 1.68 1.99 2.00 1.90 2.11 1.41 2.38 1.73 2.56 

Return on assets .................................................... 1.31 1.07 1.23 1.34 1.32 1.28 1.41 0.97 1.61 1.28 1.63 

Return on equity .................................................... 12.68 8.82 12.01 12.39 12.96 12.11 14.01 10.48 15.11 13.42 13.17 

Net charge-offs to loans and leases ...................... 0.44 0.15 0.18 0.24 0.54 0.72 0.19 0.29 0.54 0.21 0.63 

Loan and lease loss provision to net charge-offs .. 92.44 181.88 154.45 122.46 85.52 91.76 63.80 63.21 98.48 133.81 116.22 

Efficiency ratio ....................................................... 57.35 69.79 62.87 58.96 55.94 58.32 54.49 64.28 58.20 62.31 47.77 

% of unprofitable institutions .................................. 5.49 9.81 1.95 2.24 0.88 6.13 8.65 3.95 3.66 5.02 9.51 

% of institutions with earnings gains ...................... 

Condition Ratios(%) 

64.49 58.68 68.59 74.80 70.18 64.20 74.30 61.36 59.11 63.19 74.90 

Earning assets to total assets ................................ 

Loss Allowance to: 

87.28 92.09 91.84 90.90 85.80 86.72 86.18 85.98 87.69 90.06 91.29 

Loans and leases ................................................ 1.23 1.36 1.23 1.20 1.24 1.45 1.06 1.22 1.38 1.18 1.13 

Noncurrent loans and leases .............................. 

Noncurrent assets plus 

172.58 147.08 190.46 207.47 165.42 168.64 233.78 142.41 145.45 164.39 197.67 

other real estate owned to assets ....................... 0.48 0.72 0.54 0.44 0.47 0.49 0.31 0.55 0.76 0.58 0.47 

Equity capital ratio ................................................. 10.38 12.16 10.29 10.86 10.26 10.70 10.00 9.30 10.83 9.64 12.34 

Core capital (leverage) ratio .................................. 8.26 12.02 9.80 9.48 7.69 8.41 7.28 7.36 8.82 8.72 10.75 

Tier 1 risk-based capital ratio ................................. 10.82 18.00 13.54 12.84 9.90 11.79 9.35 9.06 10.78 12.36 14.61 

Total risk-based capital ratio .................................. 13.18 19.09 14.70 14.18 12.64 14.43 11.59 11.84 12.95 13.70 16.35 

Net loans and leases to deposits ........................... 92.74 75.14 84.18 95.61 94.56 83.61 86.29 90.01 102.01 83.55 130.28 

Net loans to total assets ........................................ 60.40 61.88 67.11 65.20 58.46 54.67 58.07 56.23 72.91 62.29 75.43 

Domestic deposits to total assets .......................... 

Structural Changes 

56.57 82.36 79.62 67.55 50.34 47.59 61.22 53.75 67.77 74.08 57.19 

New Charters ...................................................... 77 71 4 1 1 9 20 8 8 12 20 

Institutions absorbed by mergers ........................ 182 81 94 19 8 29 27 56 28 28 14 

Failed Institutions ................................................ 

PRIOR FIRST HALVES 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Number of institutions ................................... 2004 9,078 4,277 4,217 468 116 1,148 1,228 1,990 2,120 1,846 746 

................................ 2002 9,466 4,918 4,002 446 100 1,235 1,245 2,086 2,192 1,923 785 

................................ 2000 10,102 5,682 3,893 426 101 1,307 1,327 2,249 2,307 2,066 846 

Total assets (in billions) ............................. 2004 $9,648.5 $221.4 $1,172.2 $1,293.6 $6,961.4 $3,326.1 $2,041.3 $1,701.8 $760.3 $578.1 $1,240.8 

................................ 2002 8,039.0 247.5 1,083.4 1,292.9 5,415.2 2,762.6 1,614.6 1,514.1 420.5 555.5 1,171.6 

................................ 2000 7,163.6 269.2 1,012.6 1,200.5 4,681.3 2,437.9 1,561.0 1,194.6 461.2 566.6 942.4 

Return on assets (%) .................................... 2004 1.33 0.99 1.17 1.47 1.34 1.15 1.37 1.37 1.52 1.33 1.58 

................................ 2002 1.34 1.02 1.16 1.39 1.38 1.20 1.35 1.34 1.57 1.43 1.53 

................................ 2000 1.13 1.12 1.19 1.21 1.10 1.23 0.87 1.05 1.39 1.10 1.32 

Net charge-offs to loans & leases (%) .......... 2004 0.60 0.20 0.23 0.41 0.72 0.86 0.34 0.42 0.82 0.36 0.63 

................................ 2002 0.96 0.26 0.31 0.70 1.20 1.47 0.68 0.75 1.21 0.39 0.81 

................................ 2000 

Noncurrent assets plus 

0.51 0.22 0.26 0.52 0.58 0.63 0.41 0.32 0.74 0.32 0.62 

OREO to assets (%) .................................. 2004 0.60 0.83 0.62 0.55 0.60 0.61 0.42 0.73 0.63 0.67 0.65 

................................ 2002 0.91 0.87 0.72 0.71 1.00 1.02 0.79 1.02 0.82 0.83 0.74 

................................ 2000 0.65 0.69 0.57 0.61 0.67 0.70 0.63 0.62 0.57 0.66 0.58 

Equity capital ratio (%) ................................. 2004 9.50 11.49 9.90 10.49 9.19 9.65 8.32 8.56 10.28 9.49 11.91 

................................ 2002 9.25 11.28 10.03 9.96 8.82 8.84 9.36 8.82 10.17 9.77 10.01 

................................ 2000 8.37 11.17 9.53 8.59 7.90 8.25 8.24 8.03 9.27 8.59 8.73 

* 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 
TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

June 30, 2005 All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card� 

Banks 

International � 

Banks 

Agricultural� 

Banks 

Commercial � 

Lenders 

Mortgage� 

Lenders 

Consumer� 

Lenders 

Other� 

Specialized� 

<$1 Billion 

All Other� 

<$1 Billion 

All Other� 

>$1 Billion 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ....................................... 0.67 0.85 0.81 1.01 0.58 0.73 1.04 1.01 1.16 0.66 

Construction and development ..................................... 0.56 0.00 1.08 1.31 0.49 0.93 1.11 0.50 0.96 0.58 

Commercial real estate ................................................. 0.45 0.00 0.99 0.92 0.45 0.44 0.27 0.52 0.89 0.29 

Multifamily residential real estate ................................. 0.24 0.00 0.83 0.33 0.28 0.12 0.29 0.48 0.38 0.30 

Home equity loans ........................................................ 0.37 0.65 0.43 0.45 0.33 0.31 0.31 0.43 0.56 0.43 

Other 1-4 family residential ........................................... 0.89 2.97 0.81 1.61 0.92 0.84 1.45 1.44 1.39 0.88 

Commercial and industrial loans ..................................... 0.57 1.84 0.38 1.39 0.68 0.47 0.98 1.18 1.32 0.37 

Loans to individuals ......................................................... 1.55 2.00 1.69 2.17 1.25 0.90 1.27 2.04 1.95 1.24 

Credit card loans .......................................................... 1.97 2.06 1.96 2.19 1.79 1.36 1.19 2.95 2.51 1.84 

Other loans to individuals ............................................. 1.26 1.38 1.51 2.17 1.19 0.83 1.29 1.96 1.92 1.14 

All other loans and leases (including farm) ...................... 0.35 0.20 0.30 0.59 0.49 0.40 0.17 0.52 0.50 0.25 

Total loans and leases ..................................................... 

Percent of Loans Noncurrent** 

0.75 1.88 0.80 1.05 0.65 0.73 1.13 1.14 1.24 0.62 

All real estate loans ......................................................... 0.59 0.15 1.08 0.81 0.56 0.50 0.40 0.79 0.85 0.63 

Construction and development ..................................... 0.42 0.00 0.95 0.43 0.38 0.55 0.55 1.03 0.79 0.43 

Commercial real estate ................................................. 0.65 1.46 1.40 1.04 0.61 0.63 0.64 1.01 1.20 0.60 

Multifamily residential real estate ................................. 0.24 0.00 0.55 0.61 0.27 0.07 0.14 0.79 0.89 0.52 

Home equity loans ........................................................ 0.17 0.11 0.25 0.20 0.17 0.15 0.05 0.19 0.19 0.17 

Other 1-4 family residential ........................................... 0.72 0.57 1.20 0.76 0.80 0.56 0.52 0.67 0.68 0.84 

Commercial and industrial loans ..................................... 0.93 1.04 1.52 1.53 0.81 0.76 0.81 0.99 1.38 0.68 

Loans to individuals ......................................................... 1.21 1.74 2.00 0.77 0.50 0.37 0.63 0.67 0.69 0.70 

Credit card loans .......................................................... 1.66 1.78 1.63 1.54 1.20 1.02 0.95 0.46 2.03 1.48 

Other loans to individuals ............................................. 0.90 1.29 2.26 0.74 0.42 0.27 0.53 0.69 0.63 0.56 

All other loans and leases (including farm) ...................... 0.36 0.05 0.15 0.79 0.47 0.61 0.52 0.57 0.76 0.44 

Total loans and leases ..................................................... 

Percent of Loans Charged-off (net, YTD) 

0.71 1.58 1.20 0.90 0.60 0.51 0.55 0.79 0.88 0.63 

All real estate loans ......................................................... 0.05 0.12 0.10 0.04 0.06 0.04 0.09 0.05 0.09 0.03 

Construction and development ..................................... 0.03 0.00 0.03 0.02 0.03 0.05 0.01 0.15 0.03 0.02 

Commercial real estate ................................................. 0.05 2.58 0.11 0.05 0.06 0.03 0.03 0.06 0.18 -0.02 

Multifamily residential real estate ................................. 0.02 0.00 0.51 0.10 0.02 0.00 -0.01 0.19 0.18 -0.01 

Home equity loans ........................................................ 0.08 0.13 0.14 0.06 0.10 0.04 0.15 0.04 0.06 0.07 

Other 1-4 family residential ........................................... 0.05 0.01 0.07 0.07 0.09 0.04 0.09 0.03 0.04 0.03 

Commercial and industrial loans ..................................... 0.28 2.73 0.08 0.42 0.38 0.12 2.54 0.54 0.49 0.08 

Loans to individuals ......................................................... 2.45 4.70 2.65 0.51 1.00 1.22 1.90 1.27 1.10 1.08 

Credit card loans .......................................................... 4.45 4.83 3.90 3.97 3.72 3.36 4.55 3.96 8.60 3.39 

Other loans to individuals ............................................. 1.06 3.12 1.79 0.37 0.70 0.89 1.12 0.67 0.57 0.64 

All other loans and leases (including farm) ...................... 0.10 0.00 -0.10 0.00 0.30 0.50 0.10 0.30 0.40 0.20 

Total loans and leases ..................................................... 

Loans Outstanding (in billions) 

0.40 4.30 0.70 0.10 0.20 0.10 1.20 0.30 0.30 0.20 

All real estate loans ......................................................... $3,932.2 $16.4 $219.2 $49.5 $1,692.9 $1,079.4 $43.3 $8.9 $50.3 $772.3 

Construction and development ..................................... 389.2 0.0 6.9 3.5 291.8 25.2 1.6 0.8 3.0 56.4 

Commercial real estate ................................................. 782.3 0.0 19.5 12.7 558.3 53.2 3.2 2.6 12.0 120.8 

Multifamily residential real estate ................................. 180.5 0.0 2.2 0.9 105.7 53.2 1.0 0.3 0.9 16.5 

Home equity loans ........................................................ 533.8 14.9 46.2 0.9 190.7 109.1 10.7 0.4 2.2 158.7 

Other 1-4 family residential ........................................... 1,952.6 1.4 104.7 14.5 521.8 838.0 26.7 4.7 28.9 411.9 

Commercial and industrial loans ..................................... 1,043.1 8.8 200.6 12.8 514.6 42.8 8.1 1.6 7.5 246.3 

Loans to individuals ......................................................... 907.7 243.5 202.5 6.5 196.8 42.4 55.9 1.7 9.7 148.5 

Credit card loans .......................................................... 366.4 224.0 81.6 0.2 19.8 5.9 12.8 0.1 0.5 21.6 

Other loans to individuals ............................................. 541.2 19.6 120.9 6.3 177.0 36.5 43.1 1.6 9.3 126.9 

All other loans and leases (including farm) ...................... 525.2 6.9 194.0 21.5 135.1 5.9 3.2 0.7 4.4 153.4 

Total loans and leases ..................................................... 

Memo: Other Real Estate Owned (in millions) 

6,408.2 275.6 816.3 90.3 2,539.4 1,170.6 110.6 12.9 72.0 1,320.6 

All other real estate owned .............................................. 4,090.7 -0.6 201.0 132.6 2,165.7 822.2 32.8 25.2 128.9 582.9 

Construction and development ..................................... 479.4 0.0 2.0 7.0 328.0 55.9 1.2 3.4 11.7 70.2 

Commercial real estate ................................................. 1,268.0 0.0 11.0 54.2 971.1 68.6 5.9 13.0 48.8 95.3 

Multifamily residential real estate ................................. 131.8 0.0 0.0 6.7 54.8 8.1 0.2 0.2 7.9 53.9 

1-4 family residential ..................................................... 2,078.0 1.1 131.0 38.8 780.9 689.4 23.9 8.1 55.3 349.5 

Farmland ...................................................................... 68.0 0.0 0.0 25.9 33.3 0.5 1.8 0.5 5.5 0.5 

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.
 
TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

June 30, 2005 

All� 

Insured� 

Institutions 

Asset Size Distribution 

Less� 

than� 

$100 Million 

$100 

Million� 

to� 

$1 Billion 

$1 Billion� 

to� 

$10 Billion 

Greater� 

than $10� 

Billion Chicago 

Kansas� 

City Dallas 

San� 

Francisco 

Geographic Regions* 

New York Atlanta 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ............................. 0.67 1.17 0.70 0.43 0.71 0.72 0.58 0.79 0.76 0.70 0.57 

Construction and development ........................... 0.56 0.79 0.62 0.40 0.59 0.59 0.45 0.69 0.75 0.50 0.49 

Commercial real estate ....................................... 0.45 0.92 0.54 0.39 0.39 0.49 0.35 0.62 0.44 0.51 0.29 

Multifamily residential real estate ........................ 0.24 0.55 0.40 0.21 0.21 0.14 0.34 0.49 0.33 0.55 0.12 

Home equity loans .............................................. 0.37 0.60 0.43 0.35 0.37 0.34 0.36 0.40 0.52 0.35 0.23 

Other 1-4 family residential ................................. 0.89 1.63 0.98 0.53 0.92 0.91 0.80 1.09 1.09 1.04 0.75 

Commercial and industrial loans ............................ 0.57 1.38 1.03 0.82 0.44 0.50 0.39 0.59 0.75 0.81 0.77 

Loans to individuals ............................................... 1.55 2.26 1.69 1.48 1.54 1.70 1.35 1.20 1.80 1.26 1.73 

Credit card loans ................................................. 1.97 1.67 3.28 2.25 1.93 1.91 2.27 1.57 2.28 0.64 2.16 

Other loans to individuals ................................... 1.26 2.27 1.53 1.17 1.22 1.50 1.19 1.08 1.32 1.45 1.06 

All other loans and leases (including farm) ............ 0.35 0.67 0.51 0.43 0.32 0.38 0.19 0.44 0.37 0.57 0.30 

Total loans and leases ........................................... 

Percent of Loans Noncurrent** 

0.75 1.25 0.80 0.59 0.76 0.86 0.58 0.76 0.88 0.77 0.75 

All real estate loans ............................................... 0.59 0.81 0.58 0.50 0.61 0.54 0.37 0.92 0.97 0.68 0.40 

Construction and development ........................... 0.42 0.55 0.45 0.38 0.42 0.55 0.31 0.55 0.41 0.43 0.37 

Commercial real estate ....................................... 0.65 0.84 0.66 0.65 0.62 0.61 0.47 0.93 0.68 0.75 0.48 

Multifamily residential real estate ........................ 0.24 0.41 0.35 0.24 0.21 0.15 0.47 0.47 0.57 0.66 0.03 

Home equity loans .............................................. 0.17 0.25 0.19 0.20 0.16 0.12 0.13 0.24 0.21 0.15 0.11 

Other 1-4 family residential ................................. 0.72 0.90 0.61 0.53 0.77 0.52 0.41 1.33 1.66 0.83 0.47 

Commercial and industrial loans ............................ 0.93 1.47 1.01 0.93 0.91 1.07 0.65 1.08 0.78 0.97 0.95 

Loans to individuals ............................................... 1.21 0.88 0.66 0.64 1.31 1.81 0.79 0.56 1.29 0.49 1.18 

Credit card loans ................................................. 1.66 0.99 1.87 1.30 1.68 1.74 1.51 1.18 2.07 0.48 1.69 

Other loans to individuals ................................... 0.90 0.88 0.54 0.37 1.02 1.88 0.67 0.36 0.49 0.49 0.39 

All other loans and leases (including farm) ............ 0.36 0.91 0.66 0.59 0.30 0.21 0.37 0.40 0.50 0.77 0.43 

Total loans and leases ........................................... 

Percent of Loans Charged-off (net, YTD) 

0.71 0.92 0.64 0.58 0.75 0.86 0.45 0.86 0.95 0.72 0.57 

All real estate loans ............................................... 0.05 0.05 0.04 0.05 0.06 0.04 0.04 0.11 0.05 0.06 0.03 

Construction and development ........................... 0.03 0.06 0.02 0.04 0.02 0.03 0.02 0.04 0.02 0.04 0.01 

Commercial real estate ....................................... 0.05 0.05 0.04 0.06 0.04 0.03 0.02 0.11 0.03 0.05 0.03 

Multifamily residential real estate ........................ 0.02 0.17 0.03 0.01 0.01 0.02 0.01 0.04 0.03 0.04 0.00 

Home equity loans .............................................. 0.08 0.04 0.05 0.07 0.09 0.02 0.07 0.15 0.11 0.09 0.03 

Other 1-4 family residential ................................. 0.05 0.06 0.04 0.04 0.06 0.03 0.04 0.11 0.04 0.07 0.05 

Commercial and industrial loans ............................ 0.28 0.36 0.42 0.39 0.23 0.15 0.16 0.23 0.37 0.36 0.87 

Loans to individuals ............................................... 2.45 0.61 1.19 1.55 2.66 3.09 1.30 1.37 2.95 0.91 3.45 

Credit card loans ................................................. 4.45 1.97 6.56 3.26 4.50 4.40 4.25 3.55 4.96 1.82 4.96 

Other loans to individuals ................................... 1.06 0.59 0.61 0.86 1.15 1.79 0.68 0.71 0.63 0.64 1.07 

All other loans and leases (including farm) ............ 0.10 0.07 0.23 0.24 0.08 -0.01 0.19 0.13 0.05 0.28 0.07 

Total loans and leases ........................................... 

Loans Outstanding (in billions) 

0.40 0.20 0.20 0.20 0.50 0.70 0.20 0.30 0.50 0.20 0.60 

All real estate loans ............................................... $3,932.2 $85.6 $628.7 $644.1 $2,573.8 $786.2 $993.1 $780.7 $348.3 $244.8 $779.0 

Construction and development ........................... 389.2 9.2 103.0 96.0 181.1 43.6 129.0 83.7 35.0 47.0 51.0 

Commercial real estate ....................................... 782.3 24.3 219.5 192.5 346.0 152.8 197.1 169.3 75.0 76.2 111.8 

Multifamily residential real estate ........................ 180.5 2.0 26.3 43.3 109.0 47.9 22.9 30.6 8.7 6.2 64.3 

Home equity loans .............................................. 533.8 3.1 35.6 50.7 444.4 78.1 161.7 141.8 70.3 17.0 64.9 

Other 1-4 family residential ................................. 1,952.6 37.0 223.0 253.5 1,439.1 422.3 471.0 342.9 144.0 90.4 482.1 

Commercial and industrial loans ............................ 1,043.1 19.1 111.0 135.5 777.5 250.0 245.1 291.8 85.4 61.0 109.8 

Loans to individuals ............................................... 907.7 11.9 52.2 81.0 762.6 321.6 141.9 167.2 82.2 38.3 156.5 

Credit card loans ................................................. 366.4 0.2 4.5 23.1 338.6 159.4 20.9 40.6 41.7 8.9 94.9 

Other loans to individuals ................................... 541.2 11.7 47.6 57.9 424.0 162.2 121.0 126.6 40.5 29.4 61.6 

All other loans and leases (including farm) ............ 525.2 13.6 30.8 31.6 449.1 158.3 134.2 141.9 50.0 15.4 25.4 

Total loans and leases ........................................... 

Memo: Other Real Estate Owned (in millions) 

6,408.2 130.2 822.6 892.3 4,563.0 1,516.1 1,514.3 1,381.7 565.9 359.4 1,070.8 

All other real estate owned .................................... 4,090.7 284.9 1,179.6 702.3 1,923.9 419.0 858.3 1,142.9 453.9 743.6 473.0 

Construction and development ........................... 479.4 30.4 185.0 130.9 133.1 18.0 121.0 90.4 46.9 172.4 30.7 

Commercial real estate ....................................... 1,268.0 111.7 533.6 288.2 334.4 118.9 269.4 298.9 159.0 298.3 123.4 

Multifamily residential real estate ........................ 131.8 7.7 51.6 31.7 40.8 4.6 52.6 28.3 11.4 28.4 6.5 

1-4 family residential ........................................... 2,078.0 115.3 374.6 244.8 1,343.3 213.2 405.3 716.8 221.9 218.4 302.4 

Farmland ............................................................. 68.0 20.2 35.4 9.0 3.3 1.7 4.4 8.9 15.3 26.3 11.4 

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.
 
TABLE VI-A. Derivatives, All FDIC-Insured Commercial Banks and State-Chartered Savings Banks 

(dollar figures in millions; 

notional amounts unless otherwise indicated) 

2nd Quarter 

2005 

1st Quarter 

2005 

4th Quarter 

2004 

3rd Quarter 

2004 

2nd Quarter 

2004 

%Change -

04:2-05:2 

Asset Size Distribution 

Less Than 

$100 Million 

$100 Million 

To 

$1 Billion 

$1 Billion 

To 

$10 Billion 

Greater 

Than 

$10 Billion

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives ................................. 859 781 764 760 730 17.7 62 495 219 83 

Total assets of institutions reporting derivatives ........................... $7,432,045 $7,269,987 $7,109,132 $6,977,653 $6,801,340 9.3 $4,213 $200,161 $700,985 $6,526,687 

Total deposits of institutions reporting derivatives ........................ 4,831,478 4,713,732 4,608,663 4,476,601 4,405,583 9.7 3,416 155,798 497,937 4,174,327 

Total derivatives .................................................................. 

Derivative Contracts by Underlying Risk Exposure 

96,943,486 91,861,153 88,305,537 84,866,083 81,711,649 18.6 181 9,842 71,759 96,861,703 

Interest rate .......................................................................... 81,860,897 77,989,806 75,531,820 73,022,158 70,613,322 15.9 142 9,427 62,010 81,789,318 

Foreign exchange* ............................................................... 9,383,991 9,251,143 9,026,107 8,573,528 8,437,269 11.2 0 11 5,242 9,378,739 

Equity ................................................................................. 1,194,866 1,174,583 1,112,283 1,043,460 928,065 28.7 39 310 1,607 1,192,910 

Commodity & other (excluding credit derivatives) ........................ 398,589 321,361 288,606 289,200 247,167 61.3 0 7 94 398,488 

Credit ................................................................................ 4,105,143 3,124,260 2,346,722 1,937,738 1,485,825 176.3 0 88 2,806 4,102,249 

Total ................................................................................... 

Derivative Contracts by Transaction Type 

96,943,486 91,861,153 88,305,537 84,866,083 81,711,649 18.6 181 9,842 71,759 96,861,703 

Swaps ................................................................................ 60,921,599 58,335,659 56,416,576 52,914,550 49,704,580 22.6 33 3,736 39,856 60,877,974 

Futures & forwards ................................................................. 11,919,719 11,634,985 11,370,492 11,375,932 12,257,551 -2.8 42 2,375 10,319 11,906,984 

Purchased options ................................................................. 9,428,232 8,785,659 8,873,314 9,065,008 8,733,019 8.0 15 1,534 7,290 9,419,392 

Written options .................................................................... 9,837,802 9,242,869 8,879,551 8,927,236 8,858,553 11.1 91 2,108 11,061 9,824,541 

Total ................................................................................... 

Fair Value of Derivative Contracts 

92,107,351 87,999,172 85,539,933 82,282,726 79,553,703 15.8 181 9,753 68,526 92,028,891 

Interest rate contacts .............................................................. 20,911 28,403 26,867 24,184 20,892 0.1 1 -13 -170 21,093 

Foreign exchange contacts ...................................................... 828 1,415 -1,379 -628 419 97.6 0 0 13 815 

Equity contracts .................................................................... -2,268 -1,521 -1,308 4,029 5,502 NM 1 -2 5 -2,272 

Commodity & other (excluding credit derivatives) ........................ 1,257 3,551 1,941 1,458 1,747 -28.0 0 0 19 1,238 

Credit derivatives as guarantor ................................................ -847 6,821 15,680 9,856 6,801 NM 0 0 0 -847 

Credit derivatives as beneficiary ............................................. 

Derivative Contracts by Maturity** 

2,497 -5,937 -15,124 -8,895 -6,191 NM 0 -1 -9 2,507 

Interest rate contracts ............................................... < 1 year 17,138,071 15,560,325 15,919,774 16,212,404 15,820,368 8.3 46 2,989 15,368 17,119,668

 ............................ 1-5 years 26,722,873 26,568,782 25,893,298 24,310,740 22,508,242 18.7 15 3,216 18,258 26,701,384

 ............................ > 5 years 18,113,547 17,381,274 16,491,764 15,364,195 14,378,070 26.0 5 1,140 15,826 18,096,576 

Foreign exchange contracts ....................................... < 1 year 5,318,532 5,192,310 5,348,729 4,862,841 4,873,138 9.1 0 7 3,442 5,315,083

 ............................ 1-5 years 1,313,066 1,314,144 1,286,372 1,250,835 1,158,345 13.4 0 1 229 1,312,836

 ............................ > 5 years 684,755 691,433 760,131 644,084 627,794 9.1 0 0 0 684,755 

Equity contracts ....................................................... < 1 year 342,334 275,704 272,658 237,624 215,242 59.0 0 25 182 342,127

 ............................ 1-5 years 952,801 892,602 735,736 646,479 572,170 66.5 23 138 482 952,158

 ............................ > 5 years 166,107 173,442 139,858 86,222 92,170 80.2 0 0 36 166,071 

Commodity & other contracts ..................................... < 1 year 154,314 128,653 107,032 101,318 90,627 70.3 0 0 28 154,286

 ............................ 1-5 years 480,423 299,126 237,581 212,627 137,607 249.1 0 4 21 480,398

 ............................ > 5 years 

Risk-Based Capital: Credit Equivalent Amount 

81,626 55,119 42,450 32,281 38,603 111.4 0 0 30 81,596 

Total current exposure to tier 1 capital (%) ................................. 37.6 38.5 44.0 37.5 36.0 0.6 0.2 0.5 43.8 

Total potential future exposure to tier 1 capital (%) ..................... 76.5 80.4 76.2 73.5 69.5 0.5 0.3 0.7 89.3 

Total exposure (credit equivalent amount) to tier 1 capital (%) ......... 114.1 118.8 120.2 111.0 105.4 1.1 0.5 1.2 133.1 

Credit losses on derivatives*** ............................................. 

HELD FOR TRADING 

14.0 1.0 5.0 92.0 35.0 -60.0 0.0 0.0 0.0 14.0 

Number of institutions reporting derivatives ................................. 120 120 117 124 110 9.1 4 32 36 48 

Total assets of institutions reporting derivatives ........................... 5,911,925 5,873,516 5,687,896 5,564,219 5,406,890 9.3 192 15,304 175,988 5,720,441 

Total deposits of institutions reporting derivatives ........................ 

Derivative Contracts by Underlying Risk Exposure 

3,795,347 3,764,610 3,689,571 3,577,651 3,508,637 8.2 149 11,690 120,702 3,662,806 

Interest rate .......................................................................... 79,451,914 75,576,666 73,012,099 70,526,446 68,139,293 16.6 2 201 9,005 79,442,707 

Foreign exchange ................................................................. 8,554,016 8,412,594 8,506,865 7,833,447 7,689,888 11.2 0 8 3,952 8,550,056 

Equity ................................................................................ 1,192,086 1,170,944 1,109,519 1,040,859 925,470 28.8 0 35 1,079 1,190,973 

Commodity & other .............................................................. 398,536 321,329 288,574 289,138 247,105 61.3 0 1 47 398,488 

Total ................................................................................... 

Trading Revenues: Cash & Derivative Instruments 

89,596,552 85,481,533 82,917,057 79,689,890 77,001,756 16.4 2 244 14,082 89,582,224 

Interest rate .......................................................................... 350 1,634 880 -449 182 92.3 0 0 3 346 

Foreign exchange ................................................................. 1,301 1,699 1,274 1,162 1,570 -17.1 0 0 7 1,294 

Equity ................................................................................ 130 887 348 485 494 -73.7 0 0 1 130 

Commodity & other (including credit derivatives) ........................ 166 212 -307 24 405 -59.0 0 0 0 166 

Total trading revenues ........................................................... 

Share of Revenue 

1,947 4,432 2,194 1,222 2,650 -26.5 0 0 11 1,936 

Trading revenues to gross revenues (%) .................................... 2.0 4.5 2.4 1.5 3.2 0.0 0.0 0.4 2.0 

Trading revenues to net operating revenues (%) ........................ 

HELD FOR PURPOSES OTHER THAN TRADING 

11.7 22.5 13.5 7.9 17.3 0.0 0.0 2.3 12.0 

Number of institutions reporting derivatives ................................. 799 725 713 702 682 17.2 58 461 199 81 

Total assets of institutions reporting derivatives ........................... 7,306,311 7,084,830 6,998,688 6,798,200 6,694,954 9.1 4,021 185,322 631,975 6,484,992 

Total deposits of institutions reporting derivatives ........................ 

Derivative Contracts by Underlying Risk Exposure 

4,731,106 4,583,022 4,519,394 4,371,932 4,321,991 9.5 3,268 143,908 446,166 4,137,764 

Interest rate .......................................................................... 2,408,983 2,413,140 2,519,721 2,495,712 2,474,029 -2.6 140 9,227 53,005 2,346,611 

Foreign exchange ................................................................. 98,984 100,828 100,360 94,461 75,261 31.5 0 2 863 98,120 

Equity ................................................................................ 2,780 3,639 2,764 2,600 2,596 7.1 39 275 528 1,937 

Commodity & other .............................................................. 53,091 32,000 32,000 62,000 62,329 -14.8 0 5,525 47,566 0 

Total notional amount ........................................................... 2,510,800 2,517,639 2,622,877 2,592,835 2,551,948 -1.6 179 9,509 54,444 2,446,668 

All line items are reported on a quarterly basis.
 

*Includes 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.
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE I-B. Selected Insurance Fund Indicators* 

(dollar figures in millions) 

Bank Insurance Fund 

Reserve ratio (%)............................................................... 

Preliminary 

2nd Quarter 

2005 

1st Quarter 

2005 

2nd Quarter 

2004 

%Change 

04:06-05:06 

1.26 1.28 1.31 -3.5 

Fund Balance .................................................................. $35,094 $34,824 $34,110 2.9 

Estimated insured deposits ................................................ 2,777,086 2,724,389 2,605,707 6.6 

SAIF-member Oakars...................................................... 108,364 107,295 101,778 6.5 

BIF-members ............................................................... 2,668,721 2,617,094 2,503,929 6.6 

Assessment base ............................................................ 4,664,856 4,608,573 4,325,495 7.8 

SAIF-member Oakars...................................................... 131,348 128,179 105,560 24.4 

BIF-members ............................................................... 

Savings Association Insurance Fund 

4,533,507 4,480,395 4,219,935 7.4 

Reserve ratio (%) ............................................................ 1.32 1.33 1.34 -1.5 

Fund Balance .................................................................. $12,929 $12,793 $12,411 4.2 

Estimated insured deposits ................................................ 980,417 965,445 926,769 5.8 

BIF-member Oakars ...................................................... 445,608 434,350 427,195 4.3 

SAIF-member Sassers ................................................... 88,011 94,472 92,056 -4.4 

Other SAIF members ...................................................... 446,799 436,623 407,518 9.6 

Assessment base ............................................................ 1,213,700 1,190,752 1,098,340 10.5 

BIF-member Oakars ...................................................... 472,342 455,332 431,301 9.5 

SAIF-member Sassers ................................................... 117,148 123,183 117,578 -0.4 

Other SAIF members ...................................................... 624,210 612,237 549,461 13.6 

Fund Balances and Insured Deposits* Insurance Fund Reserve Ratios* 

($Millions) Percent of Insured Deposits 

BIF BIF-Insured SAIF SAIF-Insured 

1.42 Balance Deposits Balance Deposits 

1.40 BIF Ratio 

12/00 12/01 12/02 3/03 6/03 9/03 12/03 3/04 6/04 9/04 12/04 3/05 6/05 

12/00 30,975 2,299,932 10,759 755,156 SAIF Ratio 1.38 12/01 30,439 2,409,566 10,935 801,171 1.37 1.37 1.37 

1.36 1.36 3/02 30,697 2,495,498 11,049 810,902 1.35 

1.34 1.34 6/02 31,187 2,490,954 11,323 818,806 

1.33 1.33 9/02 31,383 2,513,160 11,586 833,029 1.32 1.32 1.32 1.32 1.32 

1.31 12/02 32,050 2,524,474 11,747 859,205 1.30 3/03 32,382 2,531,307 11,906 867,908 

1.28 1.28 1.28 6/03 32,800 2,562,053 12,083 876,305 Target 1.27 

Ratio 1.26 1.26 9/03 33,462 2,541,540 12,186 872,777 

12/03 33,782 2,556,288 12,240 896,123 

3/04 34,164 2,585,283 12,394 914,182 

6/04 34,110 2,605,707 12,411 926,769 

9/04 34,467 2,611,916 12,523 943,666 

12/04 34,787 2,677,355 12,720 951,217 

3/05 34,824 2,724,389 12,793 965,445 

6/05 35,094 2,777,086 12,929 980,417 

1.25 

* Estimated insured deposits are based on preliminary data. A reserve ratio is the fund balance as a percentage of estimated insured deposits. 

As with other Call Report items, prior periods may reflect adjustments. As a result, prior period reserve ratios may differ from previously 

reported values. Only year-end fund balances are audited by GAO. Fund balances for the most recent period are unaudited. BIF-insured 

deposit totals include U.S. branches of foreign banks. 

TABLE II-B. Closed/Assisted Institutions
 (dollar figures in millions) 

2005** 2004** 2004 2003 2002 2001 2000 

BIF Members 

Number of institutions .................. 0 3 3 3 10 3 6 

Total assets .............................. $0 $151 $151 $1,097 $2,508 $54 $378 

SAIF Members 

Number of institutions .................. 0 1 1 0 1 1 1 

Total assets .............................. $0 $15 $15 $0 $50 $2,200 $30 

**Through June 30. 
Changes in Insurance Fund Balances 

(dollar figures in millions) Bank Insurance Fund 

2nd Qtr 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 

2005 2005 2004 2004 2004 2004 2003 

Savings Association Insurance Fund 

2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 

2005 2005 2004 2004 2004 2004 2003 

Beginning Fund Balance $34,824 $34,787 $34,467 $34,110 $34,164 $33,782 $33,462 

Unrealized Gain (Loss) on 

Available-For-Sale Securities –53 –127 –32 77 –332 175 –106 

Provision for Insurance Losses –46 –6 –136 –64 –32 –37 –246 

All Other Income, Net of Expenses 277 158 216 216 246 170 180 

Total Fund Balance Change 270 37 320 357 –54 382 320 

Ending Fund Balance $35,094 $34,824 $34,787 $34,467 $34,110 $34,164 $33,782 

$12,793 $12,720 $12,523 $12,411 12,394 $12,240 $12,186 

–18 –41 –10 24 –109 59 –37 

–10 –14 –95 24 –2 1 10 

144 100 112 112 124 96 101 

136 73 197 112 17 154 54 

$12,929 $12,793 $12,720 $12,523 12,411 $12,394 $12,240 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE III-B. Selected Indicators, By Fund Membership* 

(dollar figures in millions) 2005** 2004** 2004 2003 2002 2001 2000 

BIF Members 

Number of institutions reporting ..................... 7,765 7,913 7,839 7,995 8,125 8,327 8,572 

BIF-member Oakars ................................. 762 764 773 766 801 766 743 

Other BIF-members ................................. 7,003 7,149 7,066 7,229 7,324 7,561 7,829 

Total assets ................................................ $9,027,190 $8,375,745 $8,744,042 $7,897,822 $7,335,634 $6,857,373 $6,510,744 

Total deposits ............................................. 5,956,765 5,519,710 5,773,579 5,216,328 4,854,908 4,567,603 4,337,661 

Net income ................................................ 59,185 55,434 109,119 106,206 92,455 76,388 73,430 

Return on assets (%) ................................. 1.33 1.37 1.32 1.40 1.32 1.14 1.18 

Return on equity (%) .................................... 13.11 14.79 13.81 15.21 14.31 12.89 13.86 

Noncurrent assets plus OREO to assets (%) ... 0.49 0.61 0.54 0.76 0.91 0.89 0.72 

Number of problem institutions ........................ 61 93 69 102 116 90 74 

Assets of problem institutions ........................ $19,360 $25,145 $27,161 $28,812 $32,176 $31,881 $10,787 

Number of failed/assisted institutions ............... 0 3 3 3 10 3 6 

Assets of failed/assisted institutions ............... $0 $150 $151 $1,097 $2,508 $54 $378 

SAIF Members 

Number of institutions reporting .................. 1,116 1,166 1,136 1,186 1,229 1,287 1,332 

SAIF-member Oakars .............................. 144 141 149 146 133 130 122 

Other SAIF-members ................................. 972 1,025 987 1,040 1,096 1,157 1,210 

Total assets ................................................ $1,447,110 $1,272,800 $1,360,813 $1,177,455 $1,099,965 $1,011,736 $952,154 

Total deposits ............................................. 864,177 770,444 810,621 744,022 713,599 621,824 577,100 

Net income ................................................ 8,179 6,694 13,741 14,307 12,462 10,623 8,071 

Return on assets (%) .................................... 1.16 1.10 1.09 1.25 1.17 1.11 0.89 

Return on equity (%) .................................... 10.27 10.69 10.14 13.84 12.79 13.46 11.12 

Noncurrent assets plus OREO to assets (%) ... 0.45 0.53 0.50 0.69 0.79 0.75 0.65 

Number of problem institutions .................. 13 9 11 14 20 24 20 

Assets of problem institutions ........................ $2,388 $755 $1,089 $1,105 $6,751 $7,923 $13,053 

Number of failed/assisted institutions ............... 0 1 1 0 1 1 1 

Assets of failed/assisted institutions ............... $0 $15 $15 $0 $50 $2,200 $30 

*IBAs are included in these numbers.
 

**Through June 30, ratios annualized where appropriate.
 

TABLE IV-B. Estimated FDIC-Insured Deposits by Fund Membership and Type of Institution 

(dollar figures in millions) 

June 30, 2005 

Commercial Banks and Savings Institutions 

Number of 

Institutions 

Total 

Assets 

Domestic 

Depostis* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks ..................... 7,549 8,724,590 4,899,529 2,518,343 470,549 2,988,892 

BIF-member ............................................. 7,438 8,529,026 4,780,467 2,482,864 417,676 2,900,539 

SAIF-member ............................................. 111 195,564 119,062 35,479 52,874 88,352 

FDIC-Supervised ....................................... 4,779 1,624,584 1,191,265 703,753 103,707 807,460 

OCC-Supervised ....................................... 1,864 5,821,502 2,943,236 1,429,392 278,634 1,708,026 

Federal Reserve-Supervised ........................ 906 1,278,504 765,028 385,197 88,208 473,406 

FDIC-Insured Savings Institutions ..................... 1,319 1,749,709 1,026,246 257,582 509,868 767,450 

OTS-Supervised Savings Institutions ............... 870 1,433,330 802,463 137,623 458,118 595,741 

BIF-member ............................................. 43 241,734 101,215 66,535 11,319 77,854 

SAIF-member ............................................. 827 1,191,596 701,249 71,088 446,799 517,887 

FDIC-Supervised State Savings Banks ............... 449 316,379 223,782 119,959 51,750 171,709 

BIF-member ............................................. 271 256,430 180,933 118,162 16,613 134,775 

SAIF-member ............................................. 

Total Commercial Banks and 

178 59,949 42,849 1,797 35,137 36,934 

Savings Institutions .................................... 8,868 10,474,300 5,925,774 2,775,925 980,417 3,756,342 

BIF-member ................................................ 7,752 9,027,190 5,062,615 2,667,561 445,608 3,113,168 

SAIF-member ............................................. 

Other FDIC-Insured Institutions 

1,116 1,447,110 863,159 108,364 534,810 643,174 

U.S. Branches of Foreign Banks ..................... 13 10,543 5,968 1,161 0 1,161 

Total FDIC-Insured Institutions ........................ 8,881 10,484,843 5,931,742 2,777,086 980,417 3,757,503 

* Excludes $895 billion in foreign office deposits, which are uninsured. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE V-B. Assessment Base Distribution and Rate Schedules 

BIF Assessment Base Distribution
 

Assessable Deposits in Billions as of June 30, 2005
 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2005
 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

Number of institutions ........................ 

Assessable deposit base ..................... 

2. Adequately capitalized 

Number of institutions ........................ 

Assessable deposit base ..................... 

3. Undercapitalized 

Number of institutions ........................ 

Assessable deposit base ..................... 

7,301 

$4,570 

50 

$8 

0 

$0 

94.0% 

98.0% 

0.6% 

0.2% 

0.0% 

0.0% 

352 

$72 

5 

$1 

0 

$0 

4.5% 

1.5% 

0.1% 

0.0% 

0.0% 

0.0% 

47 

$13 

7 

$0 

3 

$0 

0.6% 

0.3% 

0.1% 

0.0% 

0.0% 

0.0% 

NOTE: "Number" reflects the number of BIF members; "Base" reflects the BIF-assessable deposits held by both SAIF and BIF members. 

Institutions are categorized based on capitalization and a supervisory subgroup rating, which is generally determined 

by on-site examinations. 

SAIF Assessment Base Distribution
 

Assessable Deposits in Billions as of June 30, 2005
 

Supervisory and Capital Ratings for Second Semiannual Assessment Period, 2005
 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized 

Number of institutions ........................ 

Assessable deposit base ..................... 

2. Adequately capitalized 

Number of institutions ........................ 

Assessable deposit base ..................... 

3. Undercapitalized 

Number of institutions ........................ 

Assessable deposit base ..................... 

1,039 

$1,190 

4 

$0 

0 

$0 

93.1% 

98.1% 

0.4% 

0.0% 

0.0% 

0.0% 

60 

$21 

1 

$0 

0 

$0 

5.4% 

1.7% 

0.1% 

0.0% 

0.0% 

0.0% 

11 

$2 

0 

$0 

1 

$0 

1.0% 

0.2% 

0.0% 

0.0% 

0.1% 

0.0% 

NOTE: "Number" reflects the number of SAIF members; "Base" reflects the SAIF-assessable deposits held by both BIF and SAIF members. 

Institutions are categorized based on capitalization and a supervisory subgroup rating, which is generally determined 

by on-site examinations. 

Assessment Rate Schedule
 

Second Semiannual 2005 Assessment Period
 

Cents per $100 of Assessable Deposits
 

Supervisory Risk Subgroup 

Capital Group A B C 

1. Well-capitalized .................................... 0 3 17 

2. Adequately capitalized ........................... 3 10 24 

3. Undercapitalized .................................... 10 24 27 

Note: Rates for the BIF and the SAIF are set separately by the FDIC. 

Currently, the rate schedules are identical. 
 

 

 

 

 

Second Quarter 2005 

Chart 1 Lower Operating Income Outweighs Higher Securities Gains 

$ Billions 

40 

30 

20 

10 

0 

22.7 22.5 

20.9 21.9 

25.3 

27.2 27.3 

25.3 

29.5 30.2 30.4 31.0 31.8 31.2 

32.4 31.7 

34.3 33.1 

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 

2001 2002 2003 2004 2005 

Securities and Other Gains/Losses, Net 

Net Operating Income 

Chart 2 Smaller Institutions’ Margin Advantage Grows 

Net Interest Margin (%) 

5.0 

4.5 

4.0 

3.5 

3.0 

1	 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 

2001 2002 2003 2004 2005 

4.17 

4.33 

4.08 

4.22 

3.67 

4.06 

3.48 

Assets > $100 Million 

Assets < $100 Million 
 

 

Second Quarter 2005 

Chart 3 

Net Interest Income Drives Improvement in Earnings 

nd nd 2 Quarter 2005 vs 2 Quarter 2004 ($ Billions) 

-1.0 

0.0 

1.0 

2.0 

3.0 

4.0 

$3.6 

-$0.7 

$0.8 $0.6 

$2.8 

Positive Factors 

Negative Factor 

Improved Margins Translate Into 

Higher Earnings at Many Institutions 

Chart 4 

70 

Percent of Institutions with Quarterly Earnings Gains 

Increase in 

Net Interest 

Income 

Decline in 

Loan Loss 

Provision 

Increase in 

Noninterest 

Income 

Increase in 

Gains on 

Securities 

Sales 

Increase in 

Noninterest 

Expense 

65 

60 

55 

50 

45 

60.9 

50.7 

64.2 

3/03 6/03 9/03 12/03 3/04 6/04 9/04 12/04 3/05 6/05 
 

 

 

Second Quarter 2005 

Chart 5 Growth in Both Components of 

Net Operating Revenue Has Been Slowing 

12-Month Growth Rate (%) 

25 

20 

15 

10 

5 

0 

Chart 6 

6.1 

14.3 

0.8 

4.8 

19.7 

20.5 

-1.3 

1.5 

Total Noninterest Income 

Net Interest Income 

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 

1999 2000 2001 2002 2003 2004 2005 

Adjustable-Rate Loans Comprise a Growing Share of 

Commercial Banks’ Mortgage Portfolios 

Quarterly Change ($Billions) 

50 

25 

0 

-25 

-50 

48 

23 

9 

-7 

14 14 

-35 

21 

-17 

15 

64 

9 

46 

15 

-55 

3 

10 

-7 

1 

24 

18 

10 

2 

-2 

-8 

-3 

13 

4 

-1 

16 

-6 

17 

-2 

10 

17 

8 

17 

33 

16 16 

21 

16 

ARMs 

Fixed Rate 

2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 

2000 2001 2002 2003 2004 2005 
 

 

Second Quarter 2005 

Chart 7 Lending to Large C&I Customers Picks 

Up After Four Years of Shrinkage 

12-Month Growth ($ Billions) 

100 

75 

50 

25 

0 

-25 

-50 

-75 

-100 

75 

14 11 13 

22 

13 9 

-2 

8 10 

44 

68 

77 

-15 

-85 

-28 

-10 

92 

1997 1998 1999 2000 2001 2002 2003 2004 2005 

Large Businesses 

Small Businesses 

Chart 8 Institutions are Relying More on Smaller Deposits 

Quarterly Change in Domestic Deposits ($Billions) 

150 

125 

100 

75 

50 

25 

0 

-25 

-50 

-75 

-100 

91 

47 

36 

124 

-82 

43 

130 

92 

85 

122 

17 16 

88 

76 74 

86 

48 

31 

14 

28 34 

1 

36 40 

30 24 

-24 

38 

47 

33 28 

69 

61 

68 

Insured Deposits 

Uninsured Deposits 

2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 

2001 2002 2003 2004 2005 

31