FDIC Quarterly 

Quarterly Banking Profile: 

First Quarter 2007 

Feature Article: 

Individual Development Accounts 

and Banks: A Solid “Match” 

2007, Volume 1, Number 1 
Letter from the Executive Editor 

To the Reader: 

Welcome to the first issue of the FDIC Quarterly. This new publication brings together data and 

analyses that were previously available through three publications — the FDIC Outlook, FDIC Banking Review, and the FDIC Quarterly Banking Profile. Each issue of the FDIC Quarterly will provide 

a comprehensive summary of the most current financial results for the banking industry. Feature articles appearing in the FDIC Quarterly will 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. 

The FDIC Quarterly is also available online at www.fdic.gov. To receive e-mail notification of the 

electronic release of the FDIC Quarterly and the individual feature articles, please subscribe at 

www.fdic.gov/about/subscriptions/index.html. Previous issues of the FDIC Outlook, FDIC Banking 

Review and Quarterly Banking Profile will continue to be available on our Web site under the original publication name. 

We welcome feedback from our readers as we continue to evaluate the effectiveness of the content of 

our publications and our distribution channels. Please call or e-mail suggestions to Kim Lowry at 

(202) 898-6635 or klowry@fdic.gov. 

Sincerely, 

Maureen E. Sweeney 

Executive Editor 
FDIC Quarterly 

2007, Volume 1, Number 1 

Quarterly Banking Profile: 

First Quarter 2007 

Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation 

reported net income of $36.0 billion in first quarter 2007. This is slightly below the $36.9 billion 

earned a year ago, but still the fourth-highest amount ever reported by the industry. Higher expenses 

for credit losses at large banks and narrower net interest margins at smaller institutions posed challenges to earnings during the quarter. See page 1. 

Insurance Fund Indicators 

Insured deposits grew by 2.0 percent during the first quarter of 2007, while the Deposit Insurance 

Fund reserve ratio declined one basis point to 1.20 percent. One institution failed during the first 

quarter, ending ten consecutive quarters without a failure. See page 14. 

Feature Article: 

Individual Development Accounts and Banks: A Solid “Match” 

Even with the greater access to banking products and services provided through the development of 

alternative delivery channels, including the Internet, about 10 million American households, typically low- and moderate-income families, do not use the banking system. Many more only use a limited 

number of banking services. A particular type of savings account, the Individual Development 

Account (IDA), is a relatively low risk way for banks to introduce these households to the banking 

system. This article explains how IDAs operate, describes banks’ experience with IDAs, and points 

bankers to sources of information about these programs. See page 22. 

Chairman Sheila C. Bair 

Director, Division of Insurance Arthur J. Murton 

and Research 

Executive Editor Maureen E. Sweeney 

Managing Editors Richard Brown 

Diane L. Ellis 

Christopher Newbury 

Editors Kim E. Lowry 

Kathy Zeidler 

Publication Managers Geri Bonebrake 

Elena Johnson 

Lynne Montgomery 

Media Inquiries (202) 898-6993 

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 First Quarter 2007 

Industry Reports Year-Over-Year Earnings Decline 

Rising Loan Loss Provisions Reduce Profits at Larger Institutions 

Net Interest Margins Decline at Small Institutions, Rise at Large Banks 

Loan Growth Slows for Fourth Consecutive Quarter 

Mortgage Assets Decline for Second Quarter in a Row 

Profits Are Lower at Many Institutions 

Higher credit expenses at large institutions and narrower 

net interest margins at smaller institutions exerted downward pressure on earnings of FDIC-insured institutions in 

the first quarter of 2007. The industry reported total net 

income of $36.0 billion in the quarter, the fourth-highest 

quarterly amount ever, but it was $912 million (2.5 percent) less than the earnings posted in the first quarter of 

2006. This is the largest year-over-year decline in quarterly 

earnings since the first quarter of 2001. A significant part 

of the decrease was attributable to a change in the way that 

earnings were reported in the aftermath of a large corporate 

restructuring, but lower operating results at a number of 

institutions also contributed to the earnings drop. Evidence 

of pressure on earnings was widespread, as a majority of 

institutions (50.3 percent) reported lower quarterly net 

income. Narrower net interest margins had a negative 

effect on earnings of smaller banks and thrifts, while higher 

expenses for bad loans were more significant for large 

banks. More than two out of every three institutions — 

67.9 percent — reported lower net interest margins than a 

year ago, but only 36.6 percent of all institutions reported 

higher provisions for loan losses. Among institutions with 

more than $10 billion in assets, 73 percent raised their loss 

provisions. The average ROA for the quarter was 1.21 percent, down from 1.34 percent in the first quarter of 2006, 

as 59 percent of all institutions saw their quarterly ROAs 

decline. This is the lowest first-quarter ROA for the industry since 2001. 

Increased Costs Contribute to Earnings Decline 

Reflecting an erosion in asset quality, provisions for loan 

losses totaled $9.2 billion in the first quarter, an increase of 

$3.2 billion (54.6 percent) from a year earlier. Noninterest 

expenses were up by $3.0 billion (3.6 percent), as several 

large banks reported higher payroll expenses. These higher 

costs were partially offset by increased net interest income 

(up $3.3 billion, or 4.0 percent), higher noninterest 

income (up $1.2 billion, or 1.9 percent), and gains on sales 

of securities and other assets (up $852 million, or 127.0 

percent). Lower revenues from securitization and servicing 

activities limited the year-over-year improvement in noninterest income. 

Chart 1 Chart 2 

29.5 30.2 30.4 31.1 31.8 31.2 32.5 31.1 

34.0 34.3 34.7 

32.7 

36.9 38.0 38.1 

35.4 36.0 

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

0 

10.0 

20.0 

30.0 

40.0 

$ Billions 

Securities and Other Gains/Losses, Net 

Net Operating Income 

2003 2004 2005 2006 2007 

First Quarter Earnings Were Fourth-Highest Ever 

3.2 

3.0 

3.3 

1.2 

0.9 

0.0 

1.0 

2.0 

3.0 

4.0 

1st Quarter 2006 to 1st Quarter 2007 ($ Billions) 

Positive 

Factors 

Negative 

Factors 

Increase in 

Net Interest 

Income 

Increase in 

Noninterest 

Income 

Increase in 

Loan Loss 

Provision 

Increase in 

Gains on 

Securities Sales 

Increase in 

Noninterest 

Expense 

The Increase in Loss Provisions Was the 

Largest in Five Years 

FDIC QUARTERLY 1 2007, VOLUME 1, NO. 1 
 

Margins Fall to Sixteen-Year Low at Smaller 

Institutions 

A combination of stable interest rates and a flat yield curve 

had different effects on margins at small and large institutions 

in the first quarter. The industry’s net interest margin (NIM) 

was 3.32 percent in the first quarter, above the 3.20 percent 

average in the fourth quarter of 2006, but below the 3.46 percent average in the first quarter of 2006. The first consecutive-quarter margin improvement in the last seven quarters 

was concentrated among larger institutions. At institutions 

with more than $10 billion in assets, average asset yields 

increased and average funding costs declined from fourthquarter levels, lifting net interest margins. At institutions 

with assets between $1 billion and $10 billion, average asset 

yields increased, but so did average funding costs. Nevertheless, the improvement in yields outweighed the rise in funding costs, and this group saw its average margin increase as 

well. At institutions with less than $1 billion in assets, however, average asset yields were lower than in the fourth quarter, while average funding costs were higher, so average 

margins were down. The 3.91 percent average margin for 

institutions with less than $1 billion in assets was the lowest 

level for this group in 16 years. Compared to a year ago, 

average margins were lower for all size groups. Because of the 

narrower margins, net interest income in the first quarter was 

up by only 4.0 percent from a year earlier, even though interest-earning assets grew by 7.3 percent. At many institutions, 

narrower margins contributed to lower profitability. Among 

institutions that reported year-over-year declines in quarterly 

ROA, 84 percent also reported declines in net interest margins. At institutions reporting year-over-year declines in 

quarterly NIMs, 72 percent also had lower ROAs. 

Rising Loss Provisions Stay Ahead of Increase 

in Loan Losses 

The $9.2 billion that the industry set aside in provisions for 

loan losses during the first quarter was slightly below the $9.8 

billion set aside in the fourth quarter of 2006, but the $3.2-

billion year-over-year increase was the largest since the first 

quarter of 2002. Loss provisions exceeded net charge-offs by 

$1.1 billion (13.1 percent), the fifth quarter in a row that 

provisions have exceeded loan losses. Net charge-offs totaled 

$8.1 billion, an increase of $2.7 billion (48.4 percent) from 

the first quarter of 2006. Charge-offs were higher in most 

loan categories. Net charge-offs of credit card loans rebounded from an unusually low level a year ago, increasing by $850 

million (29.2 percent). Similarly, net charge-offs of other 

loans to individuals were $754 million (60.0 percent) higher 

than a year earlier. Net charge-offs of loans to commercial 

and industrial (C&I) borrowers increased by $470 million 

(78.6 percent), and net charge-offs of 1-4 family residential 

mortgage loans were up by $268 million (93.2 percent). 

Noncurrent Rate Climbs for Third 

Consecutive Quarter 

Since reaching a cyclical low of 0.70 percent at the middle of 

last year, the percent of insured institutions’ loans that are 

noncurrent (90 days or more past due or in nonaccrual status) 

has risen in each succeeding quarter. At the end of March, 

the noncurrent rate stood at 0.83 percent, its highest level in 

two and a half years. During the quarter, noncurrent loans 

increased by $4.0 billion (7.0 percent). Noncurrent levels 

increased in most loan categories during the first quarter, with 

Chart 3 Chart 4 

03/05 06/05 09/05 12/05 03/06 06/06 09/06 12/06 03/07 

40 

50 

60 

70 

Percent of Institutions with 

Quarterly Earnings Gains 

48.4% 

More Institutions Are Having Trouble Growing 

Their Earnings 

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

3.00 

3.50 

4.00 

4.50 

Net Interest Margin (%) 

Assets > $100 Million 

Assets < $100 Million 

2003 2004 2005 2006 2007

4.07 

3.31 

Margins Improved at Large Institutions 

FDIC QUARTERLY 2 2007, VOLUME 1, NO. 1 
 

 

 

Quarterly Banking Profile 

the largest increases occurring in real estate loans. Noncurrent residential mortgage loans increased by $1.7 billion (7.3 

percent), while noncurrent construction and development 

loans rose by $1.5 billion (36.1 percent). The rising trend in 

noncurrent loans was fairly widespread; almost half of all 

institutions (45.7 percent) saw their noncurrent loans 

increase in the first quarter. The percentage of 1-4 family residential mortgage loans that were noncurrent rose from 1.05 

percent to 1.13 percent during the quarter. This is the highest noncurrent rate for residential mortgage loans since 

midyear 1994. 

Reserve Ratio Registers First Increase in Five Years 

Insured institutions set aside $1.1 billion more in loss provisions than they charged off during the quarter, contributing 

to a $993-million (1.3-percent) increase in loan-loss reserves. 

This is the largest increase in loss reserves since the fourth 

quarter of 2002. The increase in reserves caused the industry’s ratio of reserves to total loans to move up slightly from 

1.07 percent to 1.08 percent during the quarter. This is the 

first increase in the industry’s reserve ratio since the first 

quarter of 2002; the current level is the second-lowest the 

ratio has been since 1985. The increase in reserves failed to 

keep pace with growth in noncurrent loans, and the industry’s “coverage ratio” of loss reserves to noncurrent loans fell 

from $1.37 in reserves for every $1.00 in noncurrent loans to 

$1.30 during the quarter. This is the fourth consecutive quarter that the coverage ratio has fallen. It is now at its lowest 

level since March 2003. 

Chart 5 

Dividend Surge Limits Growth in Equity 

Insured institutions paid $26.2 billion in dividends in the 

quarter, an increase of $7.3 billion (38.7 percent) from the 

first quarter of 2006, as a few large institutions reported sizable dividend increases. Retained earnings totaled only $9.8 

billion for the quarter, $8.2 billion (45.5 percent) less than a 

year earlier. Partly as a result of the lower retained earnings, 

total equity capital increased by only $19.7 billion, less than 

half the $44.5-billion increase in equity capital that the 

industry registered a year ago. This increase (the smallest in 

the last six quarters) was enough to raise the industry’s equity-to-assets ratio from 10.52 percent to 10.58 percent. Average equity ratios increased for all size groups of insured 

institutions during the quarter. The industry’s regulatory capital ratios remained largely unchanged, as levels rose slightly 

at smaller institutions and declined slightly at larger institutions. The divergence between the improvement in the equity capital ratio and the lack of improvement in regulatory 

capital ratios is due to an increase in the riskiness of industry 

assets that is reflected in some regulatory capital ratios, as 

well as the fact that one-fourth of the increase in equity consisted of goodwill, which is not included in regulatory capital. 

Slower Asset Growth Is Centered in Real Estate 

A slower growth environment prevailed in the first quarter, 

as total assets increased by $120.8 billion (1.0 percent), higher than the $106.7-billion increase in the fourth quarter of 

2006, but still the second-smallest increase in industry assets 

in the last fourteen quarters. During the twelve months 

ended March 31, assets of insured institutions grew by 6.9-

Chart 6 

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

55 

60 

65 

Efficiency Ratio (%) 

Assets > $1 Billion 

Assets < $1 Billion 

2004 2005 2006 2007

66.7 

56.3 

The “Efficiency Gap” Between Large and 

Small Institutions Is Growing 

2000 2001 2002 2003 2004 2005 2006 2007 

1.0 

1.5 

2.0 

2.5 

3.0 

Return on RWA (%, Annualized) 

55 

60 

65 

70 

75 

80 

85 

75.1 

1.6 

Return on Risk-Weighted Assets 

Risk-Weighted Assets to Assets 

RWA to Assets (%) 

Note: RWA = Assets weighted according to risk categories used in regulatory capital 

computations. 

The Industry Is Taking On More Risk 

FDIC QUARTERLY 3 2007, VOLUME 1, NO. 1 
 

Authors:

Authors:

Authors:

Authors:

percent, the slowest 12-month growth rate in four and a half 

years. The slowdown in asset growth has been led by slower 

loan growth. Total loans and leases increased by $43.8 billion (0.6 percent) during the quarter, the smallest quarterly 

increase since the first quarter of 2002. Some categories of 

real estate loans experienced shrinkage during the quarter, 

while growth in other categories slowed. Institutions’ residential mortgage loans declined for the first time in thirteen 

quarters, falling by $6.5 billion (0.3 percent), home equity 

lines dropped by $2.6 billion (0.5 percent), and real estate 

loans secured by multifamily residential properties declined 

by $1.1 billion (0.6 percent). Real estate construction and 

development loans grew by $16.8 billion, but this was the 

smallest quarterly increase for these loans since the second 

quarter of 2004. Mortgage-backed securities declined for the 

third quarter in a row, falling by $40 million. For the second 

quarter in a row, total mortgage assets of insured institutions 

(mortgage loans plus mortgage-backed securities) declined. 

Loans to commercial and industrial (C&I) borrowers were 

one of the few loan categories that had strong growth during 

the quarter, increasing by $35.1 billion (2.9 percent). Loans 

to individuals other than credit cards also grew strongly, rising by $20.9 billion (3.7 percent), with most of the growth 

occurring at a few large lenders. Fed funds sold and securities 

purchased under agreements to resell increased by $57.4 billion (10.2 percent). 

Interest-Bearing Deposit Growth Is Strong 

Total deposits grew by $70.0 billion (0.9 percent), the smallest quarterly increase since the third quarter of 2003. Domestic deposit growth was slightly stronger; deposits in domestic 

offices increased by $63.3 billion (1.0 percent), as strong 

Chart 7 

growth in interest-bearing accounts outweighed a $43.8-billion (3.6-percent) decline in noninterest-bearing deposits. 

Among the interest-bearing deposits, time deposits increased 

by only $16.4 billion (0.7 percent), while other interest-bearing deposits were up by $90.8 billion (3.1 percent). Nondeposit liabilities increased by $31.1 billion (1.1 percent) during 

the quarter, with most of the growth occurring in short-term 

borrowings. Borrowings from Federal Home Loan Banks 

declined by $14.4 billion (2.3 percent), after falling by $11.7 

billion (1.8 percent) in the fourth quarter of 2006. 

Insured Bank Failure Is First Since Mid-Year 2004 

At the end of March, there were 8,650 FDIC-insured commercial banks and savings institutions reporting financial 

results, a net decline of 31 institutions compared with the 

number reporting at the end of 2006. There were 41 new 

reporters added during the first quarter, while 72 institutions 

were absorbed by mergers. One FDIC-insured commercial 

bank, with $15.3 million in assets, failed during the quarter. 

It was the first failure of an FDIC-insured institution since 

June 25, 2004, the longest period without a failure in the history of the FDIC. The number of institutions on the FDIC’s 

“Problem List” increased from 50 to 53 during the first quarter, and assets of “problem” institutions rose from $8.3 billion 

to $21.4 billion. During the quarter, two insured savings 

institutions, with combined assets of $1.6 billion, converted 

from mutual to stock ownership. 

Authors: Richard Brown 

Chief Economist, FD

(202)898-3927 

Ross Waldrop 

IC Sr. Banking Analyst 

Division of Insurance 

and Research, FDIC 

(202)898-3951 

Chart 8

1985 1988 1991 1994 1997 2000 2003 2007 

0.0 

1.0 

2.0 

3.0 

4.0 

Percent of Loans and Leases 

*Four-quarter average rate. Prior to 1991, ratio reflects insured commercial banks only. 

Net Charge-Off 

Rate* 

Noncurrent Rate 

Is the Credit Cycle Turning? 

2003 2004 2005 2006 2007 

0 

100 

200 

300 

400 

$ Billions 

Mortgage Assets 

Other Interest-Earning Assets 

Mortgage Activity Is No Longer Contributing 

to Growth 

FDIC QUARTERLY 4 2007, VOLUME 1, NO. 1 
 

 

Quarterly Banking Profile 

TABLE I-A. Selected Indicators, All FDIC-Insured Institutions* 2007** 2006** 2006 2005 2004 2003 2002 

Return on assets (%) ................................................................ 1.21 1.34 1.28 1.30 1.28 1.38 1.30 

Return on equity (%) ................................................................. 11.44 12.95 12.31 12.73 13.20 15.05 14.08 

Core capital (leverage) ratio (%) ............................................... 8.23 8.27 8.23 8.25 8.11 7.88 7.86 

Noncurrent assets plus 

other real estate owned to assets (%) ................................... 0.56 0.48 0.53 0.50 0.53 0.75 0.90 

Net charge-offs to loans (%) ..................................................... 0.45 0.32 0.39 0.50 0.56 0.78 0.97 

Asset growth rate (%) ............................................................... 6.88 8.98 9.03 7.65 11.35 7.58 7.20 

Net interest margin (%) ............................................................. 3.32 3.46 3.31 3.50 3.54 3.73 3.96 

Net operating income growth (%) ............................................. -2.70 8.47 8.56 11.43 4.02 16.39 17.58 

Number of institutions reporting ................................................ 8,650 8,790 8,681 8,833 8,976 9,181 9,354 

Commercial banks ................................................................. 7,380 7,491 7,402 7,526 7,631 7,770 7,888 

Savings institutions ................................................................ 1,270 1,299 1,279 1,307 1,345 1,411 1,466 

Percentage of unprofitable institutions (%) ............................... 8.87 6.61 7.83 6.22 5.96 5.99 6.67 

Number of problem institutions ................................................. 53 48 50 52 80 116 136 

Assets of problem institutions (in billions) ................................. $21 $5 $8 $7 $28 $30 $39 

Number of failed/assisted institutions ....................................... 1 0 0 0 4 3 11 

* Excludes insured branches of foreign banks (IBAs) 

** Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 31. 

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

(dollar figures in millions) 

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

1st Quarter 4th Quarter 1st Quarter %Change 

2007 2006 2006 06:1-07:1 

8,650 8,681 8,790 -1.6 

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

CONDITION DATA 

2,223,402 2,206,645 2,172,999 2.3 

Total assets ......................................................................................................... $11,981,168 $11,860,318 $11,209,794 6.9 

Loans secured by real estate ........................................................................... 4,535,981 4,507,842 4,255,516 6.6 

1-4 Family residential mortgages .................................................................. 2,169,287 2,175,795 2,101,766 3.2 

Nonfarm nonresidential ................................................................................. 921,233 904,408 842,433 9.4 

Construction and development ...................................................................... 582,067 565,289 486,842 19.6 

Home equity lines .......................................................................................... 556,741 559,301 530,738 4.9 

Commercial & industrial loans .......................................................................... 1,250,160 1,215,100 1,125,652 11.1 

Loans to individuals .......................................................................................... 945,365 955,256 923,569 2.4 

Credit cards ................................................................................................... 354,169 384,980 358,627 -1.2 

Farm loans ....................................................................................................... 52,813 54,258 49,243 7.3 

Other loans & leases ........................................................................................ 494,960 503,031 513,196 -3.6 

Less: Unearned income ................................................................................... 2,286 2,397 3,344 -31.7 

Total loans & leases ......................................................................................... 7,276,995 7,233,090 6,863,831 6.0 

Less: Reserve for losses .................................................................................. 78,636 77,643 77,661 1.3 

Net loans and leases ........................................................................................ 7,198,359 7,155,447 6,786,169 6.1 

Securities .......................................................................................................... 1,969,447 1,980,445 1,956,166 0.7 

Other real estate owned ................................................................................... 6,961 6,060 5,117 36.0 

Goodwill and other intangibles ......................................................................... 423,495 413,443 380,790 11.2 

All other assets ................................................................................................. 2,382,905 2,304,923 2,081,551 14.5 

Total liabilities and capital ................................................................................... 11,981,168 11,860,318 11,209,794 6.9 

Deposits ........................................................................................................... 7,895,117 7,825,158 7,318,770 7.9 

Domestic office deposits ............................................................................... 6,694,491 6,631,123 6,330,959 5.7 

Foreign office deposits .................................................................................. 1,200,626 1,194,036 987,811 21.5 

Other borrowed funds ....................................................................................... 2,174,410 2,121,122 2,118,169 2.7 

Subordinated debt ............................................................................................ 165,323 160,547 135,458 22.0 

All other liabilities .............................................................................................. 478,431 505,347 474,159 0.9 

Equity capital .................................................................................................... 1,267,887 1,248,144 1,163,238 9.0 

Loans and leases 30-89 days past due ............................................................... 70,479 71,751 56,325 25.1 

Noncurrent loans and leases ............................................................................... 60,541 56,575 48,604 24.6 

Restructured loans and leases ............................................................................ 3,241 2,713 3,301 -1.8 

Direct and indirect investments in real estate ...................................................... 1,036 1,091 1,102 -5.9 

Mortgage-backed securities ................................................................................ 1,195,617 1,195,657 1,188,249 0.6 

Earning assets ..................................................................................................... 10,513,998 10,336,160 9,795,063 7.3 

FHLB Advances .................................................................................................. 606,501 620,909 598,302 1.4 

Unused loan commitments .................................................................................. 7,821,527 7,572,885 7,297,380 7.2 

Trust assets ......................................................................................................... 19,937,320 19,285,909 17,431,010 14.4 

Assets securitized and sold*** ............................................................................. 1,661,338 1,310,787 964,366 72.3 

Notional amount of derivatives*** ........................................................................ 146,084,457 132,181,371 111,086,862 31.5 

INCOME DATA 

Full Year Full Year 1st Quarter 1st Quarter %Change 

2006 2005 %Change 2007 2006 06:1-07:1 

Total interest income .................................................................................... 

Total interest expense .................................................................................. 

Net interest income ................................................................................... 

Provision for loan and lease losses .............................................................. 

Total noninterest income .............................................................................. 

Total noninterest expense ............................................................................ 

Securities gains (losses) ............................................................................... 

Applicable income taxes ............................................................................... 

Extraordinary gains, net ............................................................................... 

Net income ................................................................................................ 

Net charge-offs ............................................................................................. 

Cash dividends ............................................................................................. 

Retained earnings ........................................................................................ 

Net operating income ................................................................................... 

$643,500 $522,044 23.3 $176,349 $151,732 16.2 

313,360 205,035 52.8 89,766 68,480 31.1 

330,140 317,009 4.1 86,583 83,252 4.0 

29,465 29,748 -1.0 9,193 5,946 54.6 

240,481 223,389 7.7 62,233 61,051 1.9 

332,305 317,304 4.7 87,661 84,619 3.6 

2,010 4,929 -59.2 1,523 671 127.0 

68,133 64,616 5.4 17,141 17,710 -3.2 

2,663 252 NM -353 203 NM 

145,391 133,910 8.6 35,990 36,903 -2.5 

26,825 31,591 -15.1 8,130 5,477 48.4 

93,436 73,172 27.7 26,163 18,869 38.7 

51,955 60,738 -14.5 9,827 18,033 -45.5 

141,504 130,352 8.6 35,290 36,268 -2.7 

*** Call Report filers only. NM - Not Meaningful 

FDIC QUARTERLY 5 2007, VOLUME 1, NO. 1 
TABLE III-A. First Quarter 2007, All FDIC-Insured Institutions 

FIRST 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 

8,650 27 4 1,617 4,720 796 116 404 905 61 

Commercial banks ............................................... 7,380 24 4 1,612 4,260 161 87 363 822 47 

Savings institutions .............................................. 1,270 3 0 5 460 635 29 41 83 14 

Total assets (in billions) ......................................... $11,981.2 $407.8 $2,435.7 $149.0 $4,758.0 $1,506.9 $99.5 $45.7 $119.1 $2,459.5 

Commercial banks ............................................... 10,133.8 392.5 2,435.7 148.5 4,276.7 288.7 47.4 37.6 101.2 2,405.6 

Savings institutions .............................................. 1,847.3 15.3 0.0 0.5 481.3 1,218.2 52.1 8.2 17.9 53.9 

Total deposits (in billions) ....................................... 7,895.1 110.1 1,435.9 122.4 3,417.6 956.4 77.2 33.1 98.2 1,644.3 

Commercial banks ............................................... 6,722.5 107.3 1,435.9 122.0 3,123.5 173.8 35.3 27.1 84.0 1,613.7 

Savings institutions .............................................. 1,172.6 2.8 0.0 0.4 294.0 782.5 41.9 6.1 14.2 30.7 

Net income (in millions) .......................................... 35,990 3,844 5,564 443 13,959 3,438 437 230 284 7,791 

Commercial banks ............................................... 31,514 3,698 5,564 442 12,714 685 284 149 265 7,713 

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

Performance Ratios (%) 

4,476 146 0 1 1,245 2,753 153 82 19 78 

Yield on earning assets .......................................... 6.77 12.51 6.04 7.01 7.04 6.56 8.27 5.54 6.42 6.18 

Cost of funding earning assets ............................... 3.45 4.34 3.57 3.10 3.31 3.85 3.24 2.38 2.79 3.29 

Net interest margin .............................................. 3.32 8.17 2.46 3.91 3.73 2.71 5.03 3.15 3.63 2.89 

Noninterest income to assets ................................. 2.09 9.61 2.55 0.65 1.45 0.92 2.47 8.46 0.80 2.34 

Noninterest expense to assets ............................... 2.94 7.95 2.97 2.66 2.79 2.04 3.46 8.21 2.86 2.82 

Loan and lease loss provision to assets ................. 0.31 2.61 0.38 0.15 0.20 0.16 1.06 0.06 0.09 0.14 

Net operating income to assets .............................. 1.18 3.47 0.89 1.20 1.21 0.77 1.70 1.99 0.94 1.26 

Pretax return on assets .......................................... 1.78 5.71 1.36 1.43 1.72 1.40 2.74 3.08 1.20 1.88 

Return on assets .................................................... 1.21 3.70 0.93 1.19 1.18 0.91 1.79 2.05 0.96 1.27 

Return on equity ..................................................... 11.44 15.38 12.10 11.05 10.46 9.07 17.38 10.02 8.61 12.97 

Net charge-offs to loans and leases ....................... 0.45 3.86 0.57 0.14 0.22 0.21 1.43 0.18 0.15 0.31 

Loan and lease loss provision to net charge-offs ... 113.08 92.66 153.20 164.43 131.43 108.01 95.49 160.04 104.93 85.56 

Efficiency ratio ........................................................ 57.56 46.22 62.88 62.08 57.55 59.01 48.35 72.16 68.81 57.51 

% of unprofitable institutions .................................. 8.87 11.11 0.00 3.90 9.32 13.57 7.76 22.52 5.75 1.64 

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

Condition Ratios(%) 

48.38 37.04 50.00 52.26 51.55 26.26 40.52 43.81 47.40 54.10 

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

Loss allowance to: 

87.75 77.92 85.98 92.31 88.92 91.52 92.68 89.06 92.07 85.88 

Loans and leases ................................................ 1.08 3.86 1.09 1.36 1.13 0.50 1.43 1.32 1.21 0.73 

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

Noncurrent assets plus 

129.89 212.73 126.57 130.62 149.58 59.67 209.78 201.00 142.43 94.97 

other real estate owned to assets ....................... 0.56 1.32 0.40 0.79 0.61 0.67 0.55 0.18 0.59 0.45 

Equity capital ratio .................................................. 10.58 24.48 7.67 10.87 11.33 10.15 10.25 20.27 11.14 9.76 

Core capital (leverage) ratio ................................... 8.23 15.94 6.04 10.38 9.03 8.12 9.73 18.56 10.86 7.20 

Tier 1 risk-based capital ratio ................................. 10.52 15.02 8.11 14.04 10.56 13.08 11.68 43.55 17.91 9.62 

Total risk-based capital ratio .................................. 12.99 18.14 11.58 15.13 12.77 14.77 12.62 44.56 19.06 12.18 

Net loans and leases to deposits ........................... 91.17 259.80 72.70 79.58 95.91 108.17 98.87 30.50 67.30 79.44 

Net loans to total assets ......................................... 60.08 70.17 42.86 65.38 68.89 68.65 76.72 22.08 55.48 53.11 

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

Structural Changes 

55.88 24.95 28.03 82.15 69.26 63.41 76.33 70.20 82.43 54.10 

New Charters ...................................................... 41 1 0 1 12 0 0 27 0 0 

Institutions absorbed by mergers ........................ 72 1 0 8 53 4 1 1 1 3 

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

PRIOR FIRST QUARTERS 

(The way it was...) 

1 0 0 0 0 1 0 0 0 0 

Number of institutions ................................... 2006 8,790 30 4 1,647 4,629 864 120 436 1,001 59

 ............................. 2004 9,116 34 6 1,730 4,278 1,026 140 519 1,296 87

 ............................. 2002 9,521 48 6 1,852 4,031 1,201 214 463 1,611 95 

Total assets (in billions) ................................ 2006 $11,209.8 $370.2 $1,972.3 $140.3 $3,844.9 $1,745.6 $98.6 $50.0 $128.6 $2,859.2

 ............................. 2004 9,377.2 332.3 1,492.8 127.7 2,898.5 1,396.0 506.3 58.8 168.0 2,396.7

 ............................. 2002 7,823.5 299.3 1,210.8 118.5 3,579.5 1,191.1 151.4 49.5 198.3 1,025.1 

Return on assets (%) .................................... 2006 1.34 4.57 1.16 1.26 1.35 1.05 2.19 -1.31 1.06 1.23

 ............................. 2004 1.38 3.93 1.12 1.27 1.33 1.17 1.52 1.38 1.10 1.36

 ............................. 2002 1.29 3.22 0.82 1.25 1.34 1.31 1.44 -2.16 1.15 1.26 

Net charge-offs to loans & leases (%) .......... 2006 0.32 2.95 0.53 0.09 0.17 0.11 0.95 0.16 0.12 0.18

 ............................. 2004 0.64 5.17 1.30 0.12 0.31 0.12 0.71 0.70 0.24 0.34

 ............................. 2002 

Noncurrent assets plus 

0.98 7.09 1.49 0.20 0.62 0.16 1.10 0.67 0.24 0.84 

OREO to assets (%) .................................. 2006 0.48 1.17 0.42 0.67 0.49 0.55 0.51 0.23 0.53 0.37

 ............................. 2004 0.67 1.45 0.85 0.85 0.65 0.57 0.91 0.36 0.68 0.46

 ............................. 2002 0.92 1.73 1.14 0.91 0.92 0.68 1.24 0.34 0.67 0.70 

Equity capital ratio (%) .................................. 2006 10.38 27.22 7.95 10.81 10.29 10.81 9.63 19.39 11.04 9.55

 ............................. 2004 9.45 17.58 7.41 10.81 9.51 9.07 8.90 16.60 10.77 9.50

 ............................. 2002 9.22 14.83 7.57 10.56 9.62 8.83 8.41 16.30 10.25 8.02 

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

FDIC QUARTERLY 6 2007, VOLUME 1, NO. 1 
 

Quarterly Banking Profile 

TABLE III-A. First Quarter 2007, All FDIC-Insured Institutions 

FIRST 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 

8,650 3,598 4,397 536 119 1,089 1,221 1,818 2,007 1,742 773 

Commercial banks ............................................... 7,380 3,212 3,672 408 88 575 1,076 1,500 1,902 1,622 705 

Savings institutions .............................................. 1,270 386 725 128 31 514 145 318 105 120 68 

Total assets (in billions) .......................................... $11,981.2 $189.6 $1,298.2 $1,420.9 $9,072.4 $2,202.7 $2,948.7 $2,778.8 $863.5 $662.8 $2,524.8 

Commercial banks ............................................... 10,133.8 169.8 1,052.3 1,083.2 7,828.5 1,563.4 2,680.3 2,625.2 825.7 556.8 1,882.5 

Savings institutions .............................................. 1,847.3 19.8 245.9 337.6 1,244.0 639.2 268.5 153.6 37.7 106.0 642.3 

Total deposits (in billions) ....................................... 7,895.1 155.7 1,046.9 1,027.4 5,665.0 1,405.6 1,979.6 1,738.2 636.8 507.2 1,627.8 

Commercial banks ............................................... 6,722.5 140.6 860.3 790.3 4,931.3 972.6 1,804.6 1,627.3 610.8 441.4 1,265.9 

Savings institutions .............................................. 1,172.6 15.1 186.6 237.2 733.7 433.0 175.0 110.9 26.0 65.8 361.9 

Net income (in millions) .......................................... 35,990 402 3,506 4,052 28,030 6,077 9,065 7,429 3,776 1,825 7,818 

Commercial banks ............................................... 31,514 373 3,104 3,461 24,576 5,065 8,501 7,191 3,704 1,577 5,475 

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

Performance Ratios (annualized, %) 

4,476 29 402 591 3,454 1,012 564 238 71 248 2,343 

Yield on earning assets .......................................... 6.77 6.96 7.10 7.02 6.68 6.83 6.58 6.23 7.56 7.09 7.19 

Cost of funding earning assets ............................... 3.45 2.89 3.21 3.35 3.51 3.45 3.44 3.41 3.17 3.26 3.63 

Net interest margin .............................................. 3.32 4.07 3.89 3.67 3.17 3.37 3.14 2.82 4.39 3.84 3.55 

Noninterest income to assets ................................. 2.09 1.21 1.16 1.47 2.34 2.24 1.82 2.15 3.43 1.35 1.94 

Noninterest expense to assets ............................... 2.94 3.69 3.13 2.86 2.91 3.11 2.63 2.81 4.24 3.14 2.82 

Loan and lease loss provision to assets ................. 0.31 0.16 0.16 0.25 0.34 0.44 0.11 0.21 0.51 0.17 0.49 

Net operating income to assets .............................. 1.18 0.85 1.08 1.14 1.21 1.08 1.22 1.06 1.74 1.11 1.19 

Pretax return on assets .......................................... 1.78 1.10 1.47 1.71 1.85 1.64 1.84 1.60 2.50 1.48 1.88 

Return on assets .................................................... 1.21 0.86 1.09 1.15 1.24 1.10 1.24 1.08 1.75 1.11 1.25 

Return on equity ..................................................... 11.44 6.47 10.43 10.31 11.91 8.73 12.31 11.80 16.53 10.59 11.44 

Net charge-offs to loans and leases ....................... 0.45 0.14 0.13 0.25 0.55 0.81 0.22 0.31 0.62 0.19 0.55 

Loan and lease loss provision to net charge-offs ... 113.08 186.87 170.95 149.69 107.27 96.19 85.15 122.44 113.39 140.67 136.90 

Efficiency ratio ........................................................ 57.56 74.40 65.58 58.35 56.03 57.65 56.84 59.77 57.25 64.63 54.44 

% of unprofitable institutions .................................. 8.87 15.20 4.55 3.17 2.52 13.31 12.20 8.75 6.03 5.40 12.81 

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

Condition Ratios(%) 

48.38 46.66 49.83 48.51 46.22 34.80 47.91 43.34 49.38 58.96 53.69 

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

Loss Allowance to: 

87.75 92.26 92.14 91.11 86.51 87.05 87.26 87.67 87.13 89.70 88.75 

Loans and leases ................................................ 1.08 1.31 1.18 1.17 1.04 1.40 0.88 1.17 1.16 1.12 0.95 

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

Noncurrent assets plus 

129.89 131.07 146.86 155.84 122.91 153.69 172.26 120.87 88.51 133.30 114.26 

other real estate owned to assets ....................... 0.56 0.77 0.67 0.57 0.54 0.55 0.36 0.60 1.07 0.63 0.58 

Equity capital ratio .................................................. 10.58 13.24 10.50 11.24 10.44 12.73 10.04 9.13 10.57 10.59 10.94 

Core capital (leverage) ratio ................................... 8.23 13.17 10.05 9.46 7.66 9.09 7.38 7.36 8.58 8.76 9.16 

Tier 1 risk-based capital ratio ................................. 10.52 19.42 13.52 12.36 9.66 12.50 9.31 9.02 10.10 12.01 11.91 

Total risk-based capital ratio .................................. 12.99 20.49 14.64 13.64 12.53 14.61 11.72 11.78 12.78 13.33 14.65 

Net loans and leases to deposits ........................... 91.17 75.05 84.90 93.62 92.34 88.95 91.60 85.70 96.77 79.95 99.73 

Net loans to total assets ......................................... 60.08 61.63 68.46 67.70 57.66 56.76 61.50 53.61 71.37 61.18 64.30 

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

Structural Changes 

55.88 82.11 80.52 71.68 49.32 56.64 59.92 52.31 68.70 75.66 44.84 

New Charters ...................................................... 41 37 3 1 0 7 12 4 2 7 9 

Institutions absorbed by mergers ........................ 72 30 35 7 0 11 8 13 13 17 10 

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

PRIOR FIRST QUARTERS 

(The way it was...) 

1 1 0 0 0 1 0 0 0 0 0 

Number of institutions ................................... 2006 8,790 3,826 4,334 511 119 1,106 1,225 1,863 2,055 1,783 758

 ................................ 2004 9,116 4,300 4,238 465 113 1,162 1,231 1,996 2,122 1,853 752

 ................................ 2002 9,521 5,000 3,982 437 102 1,238 1,255 2,097 2,202 1,940 789 

Total assets (in billions) ................................ 2006 $11,209.8 $199.0 $1,259.4 $1,395.6 $8,355.8 $2,866.2 $2,759.4 $2,604.0 $819.6 $620.7 $1,539.9

 ................................ 2004 9,377.2 221.9 1,169.4 1,282.1 6,703.9 3,186.8 1,995.6 1,700.3 738.8 571.0 1,184.9

 ................................ 2002 7,823.5 250.0 1,068.7 1,261.3 5,243.6 2,651.7 1,571.3 1,468.8 415.6 545.6 1,170.6 

Return on assets (%) .................................... 2006 1.34 0.95 1.11 1.30 1.39 1.29 1.33 1.10 1.59 1.31 1.71

 ................................ 2004 1.38 1.00 1.17 1.48 1.41 1.32 1.32 1.38 1.52 1.35 1.57

 ................................ 2002 1.29 0.98 0.99 1.42 1.34 1.16 1.35 1.23 1.54 1.36 1.48 

Net charge-offs to loans & leases (%) .......... 2006 0.32 0.12 0.12 0.18 0.39 0.47 0.16 0.23 0.35 0.16 0.52

 ................................ 2004 0.64 0.19 0.22 0.44 0.78 0.96 0.36 0.43 0.90 0.34 0.66

 ................................ 2002 

Noncurrent assets plus

0.98 0.22 0.29 0.68 1.24 1.54 0.64 0.78 1.21 0.39 0.78 

OREO to assets (%) .................................. 2006 0.48 0.69 0.52 0.44 0.48 0.39 0.31 0.53 0.84 0.68 0.60

 ................................ 2004 0.67 0.84 0.66 0.59 0.68 0.69 0.46 0.79 0.88 0.75 0.59

 ................................ 2002 0.92 0.85 0.73 0.75 1.00 0.98 0.83 1.04 0.83 0.84 0.80 

Equity capital ratio (%) .................................. 2006 10.38 12.29 10.28 10.78 10.28 11.15 9.77 9.02 10.48 10.19 12.36

 ................................ 2004 9.45 11.73 10.18 10.71 9.00 9.13 8.58 8.74 10.44 9.64 12.07

 ................................ 2002 9.22 11.03 9.85 9.75 8.88 8.96 9.35 8.80 9.95 9.56 9.75 

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

FDIC QUARTERLY 7 2007, VOLUME 1, NO. 1 
TABLE IV-A. Full-Year 2006, All FDIC-Insured Institutions 

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 

8,681 26 4 1,634 4,712 817 124 412 895 57 

Commercial banks ............................................... 7,402 24 4 1,628 4,246 177 95 370 815 43 

Savings institutions .............................................. 1,279 2 0 6 466 640 29 42 80 14 

Total assets (in billions) .......................................... $11,860.3 $408.4 $2,337.2 $149.2 $4,904.9 $1,445.0 $109.9 $42.2 $119.5 $2,344.0 

Commercial banks ............................................... 10,090.4 406.6 2,337.2 148.7 4,415.5 312.7 41.4 34.7 103.1 2,290.5 

Savings institutions .............................................. 1,769.9 1.8 0.0 0.5 489.4 1,132.2 68.6 7.5 16.5 53.5 

Total deposits (in billions) ....................................... 7,825.2 107.8 1,417.0 122.2 3,517.8 915.3 76.3 29.9 97.6 1,541.2 

Commercial banks ............................................... 6,731.4 107.1 1,417.0 121.7 3,226.0 207.4 31.1 24.5 84.6 1,512.1 

Savings institutions .............................................. 1,093.8 0.8 0.0 0.4 291.9 707.9 45.3 5.4 13.1 29.1 

Net income (in millions) .......................................... 145,391 15,616 22,388 1,765 60,211 13,000 1,967 673 1,218 28,553 

Commercial banks ............................................... 128,365 15,529 22,388 1,759 55,087 3,147 997 283 1,134 28,041 

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

Performance Ratios (%) 

17,026 87 0 6 5,124 9,853 970 390 84 512 

Yield on earning assets .......................................... 6.45 12.84 5.60 6.83 6.73 5.82 8.84 5.39 6.21 6.06 

Cost of funding earning assets ............................... 3.14 4.01 3.34 2.79 3.00 3.31 3.31 2.28 2.49 3.08 

Net interest margin .............................................. 3.31 8.82 2.26 4.04 3.74 2.51 5.52 3.11 3.72 2.99 

Noninterest income to assets ................................. 2.12 11.19 2.31 0.68 1.52 1.24 2.49 8.62 1.06 2.20 

Noninterest expense to assets ............................... 2.93 8.72 2.77 2.73 2.78 2.14 4.67 8.76 3.05 2.72 

Loan and lease loss provision to assets ................. 0.26 2.65 0.23 0.16 0.18 0.12 1.43 0.17 0.12 0.09 

Net operating income to assets .............................. 1.25 4.19 0.90 1.24 1.30 0.84 0.94 1.42 1.04 1.26 

Pretax return on assets ........................................... 1.88 6.52 1.39 1.49 1.85 1.45 2.71 2.50 1.30 1.92 

Return on assets ..................................................... 1.28 4.19 1.01 1.23 1.28 0.94 1.75 1.50 1.04 1.26 

Return on equity ..................................................... 12.31 16.81 12.45 11.48 11.77 10.40 14.23 6.92 9.61 12.98 

Net charge-offs to loans and leases ....................... 0.39 3.48 0.48 0.17 0.22 0.15 1.40 0.40 0.20 0.22 

Loan and lease loss provision to net charge-offs ... 109.84 107.62 104.20 134.88 124.31 111.42 126.51 158.15 108.32 78.88 

Efficiency ratio ........................................................ 56.82 44.97 63.77 61.75 56.32 59.24 60.75 68.91 67.87 56.27 

% of unprofitable institutions ................................... 7.83 3.85 0.00 2.63 8.93 9.91 6.45 22.33 3.69 1.75 

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

Condition Ratios (%) 

55.52 76.92 75.00 53.06 63.65 27.29 50.81 45.87 46.82 64.91 

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

Loss Allowance to: 

87.15 75.96 85.33 91.55 88.55 91.14 91.26 88.19 91.67 84.81 

Loans and leases ................................................ 1.07 3.82 1.03 1.34 1.11 0.49 1.82 1.42 1.22 0.74 

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

Noncurrent assets plus

137.24 201.53 121.83 154.84 164.45 70.71 176.03 193.48 150.09 92.46 

other real estate owned to assets ........................ 0.53 1.37 0.40 0.67 0.54 0.56 0.85 0.20 0.56 0.45 

Equity capital ratio .................................................. 10.52 22.88 7.75 10.73 11.16 9.91 14.16 21.10 10.98 9.78 

Core capital (leverage) ratio ................................... 8.23 15.33 6.04 10.35 9.02 7.94 12.94 18.87 10.83 7.20 

Tier 1 risk-based capital ratio .................................. 10.52 12.62 8.27 13.95 10.49 12.78 16.01 44.64 17.81 9.95 

Total risk-based capital ratio ................................... 12.98 15.74 11.85 15.04 12.68 14.43 17.00 45.75 18.98 12.46 

Net loans and leases to deposits ............................ 91.44 262.66 72.36 79.81 95.41 110.39 112.67 30.80 68.05 79.23 

Net loans to total assets ......................................... 60.33 69.35 43.87 65.33 68.43 69.93 78.22 21.81 55.58 52.09 

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

Structural Changes 

55.91 22.85 29.54 81.86 68.75 63.26 68.22 69.11 81.64 52.80 

New Charters ....................................................... 191 0 0 3 50 2 2 128 5 1 

Institutions absorbed by mergers ........................ 342 3 5 32 266 11 1 4 9 11 

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

PRIOR FULL YEARS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 

Number of institutions .................................. 2005 8,833 33 4 1,685 4,617 887 125 425 995 62

 ................................ 2003 9,181 36 6 1,767 4,254 1,033 157 529 1,308 91

 ................................ 2001 9,614 56 5 1,875 3,967 1,242 228 477 1,663 101 

Total assets (in billions) ............................... 2005 $10,878.2 $359.1 $1,851.2 $142.3 $4,257.3 $1,655.1 $117.3 $47.7 $128.7 $2,319.6

 ................................ 2003 9,075.3 348.4 1,448.0 129.5 2,923.8 1,657.6 146.6 61.1 171.1 2,189.3

 ................................ 2001 7,869.1 334.7 1,176.3 120.1 3,539.1 1,178.8 140.8 49.7 202.9 1,126.7 

Return on assets (%) ................................... 2005 1.30 2.90 0.86 1.27 1.37 1.07 1.55 2.19 1.09 1.41

 ................................ 2003 1.38 4.08 1.10 1.20 1.28 1.38 1.31 1.85 1.06 1.34

 ................................ 2001 1.14 2.89 0.84 1.12 1.12 1.05 1.29 1.84 1.04 1.09 

Net charge-offs to loans & leases (%) ......... 2005 0.50 4.64 0.87 0.18 0.23 0.12 1.44 0.26 0.23 0.25

 ................................ 2003 0.78 5.22 1.40 0.28 0.46 0.18 2.09 1.22 0.38 0.62

 ................................ 2001 

Noncurrent assets plus

0.83 4.52 0.88 0.36 0.68 0.19 1.39 0.50 0.33 0.75 

OREO to assets (%) ................................. 2005 0.50 1.32 0.46 0.61 0.48 0.56 0.51 0.24 0.54 0.39

 ................................ 2003 0.75 1.63 0.93 0.81 0.68 0.73 0.99 0.33 0.71 0.59

 ................................ 2001 0.87 1.54 1.00 0.81 0.92 0.65 1.30 0.31 0.66 0.64 

Equity capital ratio (%) ................................. 2005 10.28 21.51 8.30 10.54 10.83 9.39 10.11 19.47 10.83 9.53

 ................................ 2003 9.15 16.04 7.39 10.64 9.24 9.10 7.30 16.74 10.45 8.87

 ................................ 2001 8.98 13.12 7.51 10.47 9.46 8.25 7.60 17.56 10.37 7.95 

*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. 

FDIC QUARTERLY 8 2007, VOLUME 1, NO. 1 
 

Quarterly Banking Profile 

TABLE IV-A. Full-Year 2006, All FDIC-Insured Institutions 

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 

8,681 3,633 4,399 530 119 1,093 1,218 1,826 2,018 1,753 773 

Commercial banks ............................................... 7,402 3,246 3,662 406 88 575 1,074 1,507 1,914 1,629 703 

Savings institutions .............................................. 1,279 387 737 124 31 518 144 319 104 124 70 

Total assets (in billions) .......................................... $11,860.3 $189.9 $1,290.0 $1,397.7 $8,982.7 $2,214.5 $2,911.4 $2,746.2 $859.8 $652.3 $2,476.1 

Commercial banks ............................................... 10,090.4 170.4 1,039.6 1,076.4 7,804.1 1,575.7 2,749.9 2,593.9 822.8 547.1 1,800.9 

Savings institutions .............................................. 1,769.9 19.6 250.4 321.3 1,178.6 638.8 161.4 152.3 37.0 105.1 675.2 

Total deposits (in billions) ....................................... 7,825.2 155.9 1,035.6 992.4 5,641.3 1,395.9 1,966.9 1,746.9 627.5 494.3 1,593.7 

Commercial banks ............................................... 6,731.4 141.0 847.5 767.6 4,975.3 972.8 1,859.9 1,639.0 602.8 429.9 1,226.9 

Savings institutions .............................................. 1,093.8 14.9 188.1 224.8 666.0 423.0 107.0 107.8 24.7 64.5 366.8 

Net income (in millions) .......................................... 145,391 1,694 14,492 16,287 112,919 27,447 36,194 29,212 14,741 7,669 30,129 

Commercial banks ............................................... 128,365 1,546 12,277 13,726 100,816 21,975 34,881 28,029 14,444 6,530 22,506 

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

Performance Ratios (%) 

17,026 148 2,214 2,561 12,103 5,471 1,313 1,182 297 1,139 7,623 

Yield on earning assets .......................................... 6.45 6.62 6.91 6.73 6.33 6.50 6.46 5.97 7.50 6.75 6.51 

Cost of funding earning assets ............................... 3.14 2.51 2.88 3.05 3.21 3.14 3.19 3.20 2.92 2.82 3.18 

Net interest margin .............................................. 3.31 4.11 4.02 3.69 3.12 3.35 3.26 2.76 4.58 3.93 3.33 

Noninterest income to assets ................................. 2.12 1.18 1.24 1.40 2.38 2.41 1.90 2.11 3.26 1.42 1.88 

Noninterest expense to assets ............................... 2.93 3.62 3.20 2.78 2.89 3.06 2.63 2.77 4.23 3.19 2.79 

Loan and lease loss provision to assets ................. 0.26 0.18 0.18 0.18 0.28 0.46 0.13 0.17 0.37 0.15 0.33 

Net operating income to assets .............................. 1.25 0.91 1.15 1.22 1.27 1.21 1.32 1.09 1.76 1.20 1.20 

Pretax return on assets .......................................... 1.88 1.18 1.58 1.80 1.95 1.88 1.96 1.59 2.62 1.63 1.92 

Return on assets .................................................... 1.28 0.92 1.16 1.22 1.31 1.27 1.31 1.10 1.77 1.23 1.30 

Return on equity ..................................................... 12.31 7.04 11.27 11.44 12.75 10.45 13.27 12.16 16.29 12.05 12.00 

Net charge-offs to loans and leases ....................... 0.39 0.18 0.16 0.20 0.46 0.72 0.19 0.28 0.55 0.21 0.42 

Loan and lease loss provision to net charge-offs ... 109.84 163.60 166.21 135.23 104.15 111.71 108.89 110.55 95.93 110.96 114.01 

Efficiency ratio ........................................................ 56.82 72.66 63.62 57.16 55.48 54.65 54.55 60.00 57.23 63.70 56.18 

% of unprofitable institutions .................................. 7.83 13.60 3.96 2.08 0.84 11.07 11.82 6.68 4.61 5.31 13.84 

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

Condition Ratios (%) 

55.52 50.59 58.60 62.45 61.34 40.53 66.34 43.87 52.97 65.89 70.38 

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

Loss Allowance to: 

87.15 91.82 91.85 90.66 85.83 86.53 86.72 86.52 85.96 89.37 88.74 

Loans and leases ................................................ 1.07 1.31 1.16 1.16 1.04 1.41 0.89 1.15 1.16 1.11 0.90 

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

Noncurrent assets plus

137.24 137.82 163.44 170.67 128.28 163.72 190.09 125.88 88.95 134.99 121.70 

other real estate owned to assets ....................... 0.53 0.73 0.59 0.52 0.52 0.51 0.33 0.57 1.05 0.62 0.53 

Equity capital ratio .................................................. 10.52 13.01 10.39 10.98 10.42 12.49 10.05 9.07 10.64 10.42 10.92 

Core capital (leverage) ratio ................................... 8.23 12.99 9.99 9.37 7.69 8.99 7.49 7.24 8.76 8.69 9.23 

Tier 1 risk-based capital ratio ................................. 10.52 19.20 13.49 12.27 9.68 12.31 9.36 8.99 10.09 11.99 12.05 

Total risk-based capital ratio .................................. 12.98 20.27 14.62 13.56 12.53 14.38 11.67 11.79 12.81 13.29 14.82 

Net loans and leases to deposits ........................... 91.44 75.29 85.42 94.39 92.48 89.41 91.41 85.25 96.75 80.88 101.24 

Net loans to total assets ......................................... 60.33 61.80 68.57 67.02 58.08 56.36 61.75 54.23 70.61 61.30 65.16 

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

Structural Changes 

55.91 82.07 80.18 70.39 49.62 55.71 59.88 52.99 68.42 74.99 45.29 

New Charters ...................................................... 191 183 4 4 0 22 70 17 12 19 51 

Institutions absorbed by mergers ........................ 342 135 165 31 11 37 78 70 71 48 38 

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

PRIOR FULL YEARS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Number of institutions ................................... 2005 8,833 3,864 4,339 512 118 1,110 1,227 1,874 2,070 1,791 761

 ................................ 2003 9,181 4,390 4,210 471 110 1,173 1,227 2,011 2,133 1,866 771

 ................................ 2001 9,614 5,063 4,006 444 101 1,263 1,273 2,108 2,216 1,955 799 

Total assets (in billions) ................................ 2005 $10,878.2 $200.8 $1,247.5 $1,393.2 $8,036.7 $2,768.2 $2,683.9 $2,505.8 $803.6 $607.7 $1,508.9

 ................................ 2003 9,075.3 225.7 1,160.5 1,312.6 6,376.5 3,084.8 1,882.6 1,693.8 456.3 563.3 1,394.3

 ................................ 2001 7,869.1 251.2 1,070.7 1,272.5 5,274.7 2,703.4 1,586.7 1,492.9 406.4 543.3 1,136.4 

Return on assets (%) .................................... 2005 1.30 1.00 1.24 1.29 1.31 1.22 1.42 1.00 1.62 1.19 1.60

 ................................ 2003 1.38 0.95 1.18 1.41 1.43 1.28 1.38 1.31 1.63 1.37 1.62

 ................................ 2001 1.14 0.85 1.08 1.26 1.14 1.01 1.11 1.07 1.42 1.25 1.46 

Net charge-offs to loans & leases (%) .......... 2005 0.50 0.20 0.19 0.24 0.61 0.81 0.24 0.33 0.56 0.24 0.70

 ................................ 2003 0.78 0.31 0.36 0.54 0.94 1.16 0.54 0.72 1.09 0.40 0.58

 ................................ 2001 

Noncurrent assets plus

0.83 0.33 0.35 0.83 0.96 1.02 0.75 0.79 0.80 0.43 0.80 

OREO to assets (%) .................................. 2005 0.50 0.68 0.52 0.44 0.50 0.44 0.30 0.54 0.86 0.73 0.59

 ................................ 2003 0.75 0.83 0.69 0.62 0.78 0.78 0.56 0.86 0.84 0.76 0.76

 ................................ 2001 0.87 0.81 0.70 0.72 0.95 0.89 0.86 0.99 0.77 0.79 0.76 

Equity capital ratio (%) .................................. 2005 10.28 12.16 10.21 10.68 10.18 10.54 9.80 9.23 10.45 10.17 12.40

 ................................ 2003 9.15 11.49 10.05 10.35 8.66 9.05 8.78 8.49 10.59 9.60 10.05

 ................................ 2001 8.98 11.08 9.85 9.49 8.58 8.77 9.62 8.47 8.93 9.38 9.12 

* Regions: 

New York - Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Puerto Rico 

Rhode Island, Vermont, U.S. Virgin Islands 

Atlanta - Alabama, Florida, Georgia, North Carolina, South Carolina, Virginia, West Virginia 

Chicago - Illinois, Indiana, Kentucky, Michigan, Ohio, Wisconsin 

Kansas City - Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota 

Dallas - Arkansas, Colorado, Louisiana, Mississippi, New Mexico, Oklahoma, Tennessee, Texas 

San Francisco - Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Pacific Islands, Utah, Washington, Wyoming 

FDIC QUARTERLY 9 2007, VOLUME 1, NO. 1 
TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

March 31, 2007 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 ......................................... 0.96 2.43 1.39 1.36 0.89 1.02 0.63 1.21 1.45 0.80 

Construction and development ....................................... 1.08 0.00 2.50 2.08 1.05 1.49 0.82 1.16 1.30 0.85 

Nonfarm nonresidential ................................................... 0.58 0.00 0.99 1.14 0.60 0.42 0.72 1.17 1.19 0.33 

Multifamily residential real estate .................................... 0.49 0.00 0.31 0.78 0.66 0.16 0.00 1.23 0.65 0.28 

Home equity loans .......................................................... 0.69 2.48 0.73 0.66 0.59 0.83 0.36 0.57 0.64 0.73 

Other 1-4 family residential ............................................. 1.21 2.39 1.69 1.74 1.20 1.12 0.79 1.29 1.67 1.00 

Commercial and industrial loans ........................................ 0.63 2.57 0.42 1.70 0.67 0.72 1.26 2.01 1.58 0.44 

Loans to individuals ............................................................ 1.62 1.96 1.78 1.97 1.35 1.03 1.43 1.87 2.07 1.52 

Credit card loans ............................................................. 1.91 1.99 1.88 1.13 1.87 1.49 1.42 2.75 1.17 1.83 

Other loans to individuals ................................................ 1.44 1.74 1.74 2.02 1.27 0.80 1.43 1.75 2.10 1.46 

All other loans and leases (including farm) ........................ 0.64 0.07 0.80 1.31 0.75 0.63 0.12 0.73 0.80 0.31 

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

Percent of Loans Noncurrent** 

0.97 1.84 1.13 1.44 0.87 1.01 1.14 1.38 1.50 0.77 

All real estate loans ............................................................ 0.89 2.08 1.10 1.04 0.83 0.85 0.35 0.63 0.87 1.00 

Construction and development ....................................... 0.95 0.00 1.03 1.93 0.91 1.38 0.91 0.76 1.40 1.01 

Nonfarm nonresidential ................................................... 0.62 0.00 0.63 1.31 0.61 0.70 0.54 0.68 1.17 0.48 

Multifamily residential real estate .................................... 0.60 0.00 0.36 0.61 0.79 0.25 0.11 1.54 1.45 0.37 

Home equity loans .......................................................... 0.44 2.00 0.36 0.37 0.39 0.62 0.05 0.09 0.35 0.45 

Other 1-4 family residential ............................................. 1.13 2.21 1.35 0.87 1.14 0.91 0.50 0.57 0.72 1.41 

Commercial and industrial loans ........................................ 0.62 1.97 0.41 1.60 0.64 0.73 1.06 1.19 1.20 0.54 

Loans to individuals ............................................................ 1.17 1.99 1.56 0.70 0.65 0.56 0.81 0.49 0.60 0.60 

Credit card loans ............................................................. 1.93 2.07 1.99 1.06 1.65 1.27 1.30 1.03 1.04 1.70 

Other loans to individuals ................................................ 0.71 1.41 1.38 0.68 0.51 0.21 0.65 0.42 0.59 0.38 

All other loans and leases (including farm) ........................ 0.23 0.02 0.15 0.77 0.33 0.28 0.05 0.40 0.58 0.14 

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

Percent of Loans Charged-off (net, YTD) 

0.83 1.82 0.86 1.04 0.75 0.84 0.68 0.66 0.85 0.77 

All real estate loans ............................................................ 0.10 1.57 0.21 0.04 0.09 0.09 0.14 0.03 0.05 0.08 

Construction and development ....................................... 0.07 0.00 0.00 0.12 0.08 0.10 0.27 -0.01 0.08 0.03 

Nonfarm nonresidential ................................................... 0.04 0.00 0.05 0.07 0.04 0.01 0.01 0.03 0.05 0.01 

Multifamily residential real estate .................................... 0.02 0.00 0.00 0.00 0.03 0.00 0.00 0.00 0.05 0.06 

Home equity loans .......................................................... 0.24 1.95 0.26 0.10 0.22 0.28 0.13 0.63 0.08 0.22 

Other 1-4 family residential ............................................. 0.10 0.86 0.22 0.07 0.13 0.07 0.16 0.02 0.05 0.05 

Commercial and industrial loans ........................................ 0.35 3.96 0.07 0.48 0.29 0.28 3.11 0.27 0.30 0.33 

Loans to individuals ............................................................ 2.43 4.17 2.66 0.59 1.18 2.72 1.87 0.51 0.53 1.53 

Credit card loans ............................................................. 4.07 4.23 3.14 3.15 3.56 6.54 3.62 2.35 3.94 3.75 

Other loans to individuals ................................................ 1.38 3.68 2.45 0.43 0.83 0.54 1.27 0.26 0.43 1.07 

All other loans and leases (including farm) ........................ 0.12 0.00 -0.02 0.00 0.25 0.30 0.32 0.43 0.00 0.15 

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

Loans Outstanding (in billions) 

0.45 3.86 0.57 0.14 0.22 0.21 1.42 0.18 0.15 0.31 

All real estate loans ............................................................ $4,536.0 $2.3 $446.4 $55.1 $2,227.2 $958.8 $24.4 $6.3 $47.6 $767.9 

Construction and development ....................................... 582.1 0.0 8.3 5.1 485.5 26.0 0.6 0.5 3.2 52.8 

Nonfarm nonresidential ................................................... 921.2 0.0 24.0 14.7 702.1 44.0 2.1 1.8 11.4 121.2 

Multifamily residential real estate .................................... 192.0 0.0 11.2 1.0 115.7 47.4 0.2 0.1 0.8 15.5 

Home equity loans .......................................................... 556.7 1.3 88.0 0.9 201.3 94.1 8.6 0.2 1.7 160.6 

Other 1-4 family residential ............................................. 2,169.3 1.0 269.0 14.7 687.0 746.8 12.8 3.5 27.3 407.3 

Commercial and industrial loans ........................................ 1,250.2 24.5 249.3 14.1 673.9 26.3 7.2 1.3 6.9 246.7 

Loans to individuals ............................................................ 945.4 243.9 184.9 6.4 243.6 49.6 45.0 1.7 8.1 162.1 

Credit card loans ............................................................. 354.2 215.5 53.3 0.4 30.5 16.5 10.9 0.2 0.2 26.6 

Other loans to individuals ................................................ 591.2 28.5 131.5 6.0 213.1 33.1 34.0 1.5 7.9 135.5 

All other loans and leases (including farm) ........................ 547.8 26.8 175.4 23.2 171.9 5.1 1.0 0.9 4.3 139.2 

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

Memo: Other Real Estate Owned (in millions) 

7,279.3 297.6 1,056.0 98.7 3,316.5 1,039.8 77.5 10.2 66.9 1,315.9 

All other real estate owned ................................................. 6,961.1 -6.4 698.1 145.0 3,710.2 1,345.8 21.5 13.7 132.0 901.1 

Construction and development ....................................... 688.1 0.0 1.0 15.9 574.6 61.7 0.4 0.5 16.3 17.8 

Nonfarm nonresidential ................................................... 1,188.3 0.1 6.0 53.5 953.3 59.9 6.6 8.4 54.3 46.3 

Multifamily residential real estate .................................... 367.6 0.0 2.0 5.2 330.9 8.8 0.2 0.0 5.8 14.7 

1-4 family residential ....................................................... 3,590.8 1.0 256.1 42.5 1,595.1 1,186.5 14.3 4.2 53.0 438.1 

Farmland ......................................................................... 66.8 0.0 0.0 27.6 33.0 0.0 0.2 0.6 2.6 2.6 

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status. 

FDIC QUARTERLY 10 2007, VOLUME 1, NO. 1 
 

Quarterly Banking Profile 

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

March 31, 2007 

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 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ............................. 0.96 1.43 1.02 0.76 0.99 0.75 0.84 1.17 0.94 1.08 1.07 

Construction and development ........................... 1.08 1.08 1.20 1.03 1.05 0.95 0.76 1.74 1.17 0.93 1.05 

Nonfarm nonresidential ....................................... 0.58 1.13 0.81 0.52 0.47 0.67 0.40 0.81 0.65 0.73 0.35 

Multifamily residential real estate ........................ 0.49 0.97 0.74 0.87 0.29 0.27 0.59 1.48 0.46 0.64 0.18 

Home equity loans .............................................. 0.69 0.90 0.70 0.61 0.70 0.59 0.72 0.68 0.77 0.52 0.69 

Other 1-4 family residential ................................. 1.21 1.87 1.20 0.82 1.25 0.82 1.09 1.38 1.18 1.73 1.42 

Commercial and industrial loans ............................ 0.63 1.63 1.12 0.86 0.52 0.88 0.43 0.71 0.94 0.85 0.43 

Loans to individuals ............................................... 1.62 2.31 1.58 1.56 1.62 1.84 1.29 1.44 2.06 1.38 1.61 

Credit card loans ................................................. 1.91 1.68 2.43 1.71 1.92 2.02 1.94 1.81 1.85 1.14 1.84 

Other loans to individuals .................................... 1.44 2.32 1.49 1.49 1.42 1.55 1.19 1.32 2.23 1.43 1.48 

All other loans and leases (including farm) ............ 0.64 1.28 0.91 0.68 0.60 0.67 0.50 0.67 0.52 0.91 0.80 

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

Percent of Loans Noncurrent** 

0.97 1.51 1.06 0.83 0.97 0.98 0.79 1.06 1.06 1.06 1.02 

All real estate loans ................................................ 0.89 0.99 0.79 0.76 0.94 0.73 0.56 1.24 1.69 0.91 0.84 

Construction and development ........................... 0.95 1.19 1.12 0.96 0.86 1.48 0.68 1.31 1.13 0.68 0.82 

Nonfarm nonresidential ....................................... 0.62 1.07 0.74 0.62 0.53 0.72 0.39 0.95 0.69 0.61 0.40 

Multifamily residential real estate ........................ 0.60 1.08 0.63 0.88 0.49 0.24 0.43 1.73 0.39 1.23 0.40 

Home equity loans .............................................. 0.44 0.39 0.39 0.46 0.44 0.36 0.41 0.48 0.52 0.23 0.47 

Other 1-4 family residential ................................. 1.13 0.96 0.73 0.81 1.23 0.71 0.63 1.68 3.41 1.54 1.01 

Commercial and industrial loans ............................ 0.62 1.32 1.00 0.80 0.53 0.97 0.40 0.64 0.81 0.77 0.49 

Loans to individuals ............................................... 1.17 0.87 0.62 0.65 1.25 1.66 0.63 0.76 1.16 0.48 1.46 

Credit card loans ................................................. 1.93 0.91 2.13 1.36 1.97 2.26 1.69 1.65 1.52 0.93 1.79 

Other loans to individuals .................................... 0.71 0.87 0.47 0.37 0.77 0.63 0.48 0.48 0.85 0.39 1.26 

All other loans and leases (including farm) ............ 0.23 0.76 0.55 0.39 0.18 0.12 0.14 0.26 0.28 0.70 0.27 

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

Percent of Loans Charged-off (net, YTD) 

0.83 1.00 0.80 0.75 0.85 0.91 0.51 0.97 1.31 0.84 0.83 

All real estate loans ................................................ 0.10 0.06 0.04 0.05 0.12 0.05 0.06 0.19 0.12 0.07 0.10 

Construction and development ........................... 0.07 0.11 0.06 0.08 0.08 0.09 0.07 0.11 0.08 0.08 0.01 

Nonfarm nonresidential ....................................... 0.04 0.05 0.03 0.00 0.06 0.03 0.03 0.10 -0.01 0.04 0.00 

Multifamily residential real estate ........................ 0.02 0.03 0.05 0.06 0.01 0.00 -0.05 0.16 0.00 0.01 0.01 

Home equity loans .............................................. 0.24 0.06 0.07 0.19 0.26 0.13 0.17 0.29 0.36 0.21 0.27 

Other 1-4 family residential ................................. 0.10 0.08 0.05 0.06 0.12 0.05 0.05 0.24 0.12 0.06 0.12 

Commercial and industrial loans ............................ 0.35 0.43 0.29 0.38 0.35 0.65 0.23 0.21 0.75 0.21 0.32 

Loans to individuals ............................................... 2.43 0.44 0.94 1.82 2.60 3.30 1.31 1.30 2.77 1.01 3.21 

Credit card loans ................................................. 4.07 3.93 5.56 3.02 4.11 4.28 4.15 3.27 4.09 2.65 4.12 

Other loans to individuals .................................... 1.38 0.37 0.46 1.35 1.50 1.53 0.83 0.65 1.52 0.68 2.65 

All other loans and leases (including farm) ............ 0.12 0.03 0.18 0.27 0.11 0.12 0.21 0.13 0.04 0.29 0.03 

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

Loans Outstanding (in billions) 

0.45 0.14 0.13 0.25 0.55 0.81 0.22 0.31 0.62 0.19 0.55 

All real estate loans ................................................ $4,536.0 $79.3 $696.5 $720.6 $3,039.7 $756.1 $1,237.4 $870.5 $356.1 $280.5 $1,035.4 

Construction and development ........................... 582.1 10.7 140.5 154.0 276.9 61.1 190.6 119.8 47.1 74.0 89.6 

Nonfarm nonresidential ....................................... 921.2 22.1 237.1 221.3 440.7 174.6 243.2 195.4 82.8 85.6 139.7 

Multifamily residential real estate ........................ 192.0 1.8 27.1 40.9 122.2 50.0 22.8 30.6 8.7 6.3 73.5 

Home equity loans .............................................. 556.7 2.6 33.1 44.3 476.7 53.1 175.6 152.1 71.5 19.0 85.5 

Other 1-4 family residential ................................. 2,169.3 32.6 233.4 247.9 1,655.4 413.5 587.5 356.4 128.8 86.4 596.7 

Commercial and industrial loans ............................ 1,250.2 17.3 119.2 145.0 968.7 178.3 293.2 329.3 105.5 73.0 270.9 

Loans to individuals ............................................... 945.4 9.5 50.8 75.2 809.9 253.7 168.2 168.2 92.4 40.2 222.7 

Credit card loans ................................................. 354.2 0.2 4.7 21.4 328.0 159.6 21.2 40.7 43.1 6.6 83.0 

Other loans to individuals .................................... 591.2 9.3 46.1 53.8 482.0 94.1 147.1 127.5 49.3 33.6 139.7 

All other loans and leases (including farm) ............ 547.8 12.4 33.5 33.2 468.7 80.3 131.0 139.4 69.6 16.6 110.9 

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

Memo: Other Real Estate Owned (in millions) 

7,279.3 118.5 899.9 973.9 5,287.0 1,268.3 1,829.9 1,507.3 623.5 410.3 1,640.0 

All other real estate owned .................................... 6,961.1 267.5 1,472.4 834.6 4,386.6 506.3 1,390.5 2,003.9 1,129.7 760.8 1,169.7 

Construction and development ........................... 688.1 34.9 337.6 192.9 122.8 41.9 224.6 114.6 108.9 170.6 27.5 

Nonfarm nonresidential ....................................... 1,188.3 100.9 548.9 227.3 311.2 108.5 278.4 293.6 177.0 270.0 60.8 

Multifamily residential real estate ........................ 367.6 8.8 46.6 37.2 275.0 4.5 251.0 61.3 16.0 25.5 9.4 

1-4 family residential ........................................... 3,590.8 111.2 497.3 358.7 2,623.6 334.3 607.7 1,035.4 429.7 236.7 946.9 

Farmland ............................................................. 66.8 11.8 36.0 15.8 3.2 5.2 3.0 5.7 15.6 35.0 2.2 

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status. 

FDIC QUARTERLY 11 2007, VOLUME 1, NO. 1 
 

Blank

Blank

Blank

Blank

Blank

TABLE VI-A. Derivatives, All FDIC-Insured Commercial Banks and State-Chartered Savings Banks 

(dollar figures in millions; 

notional amounts unless otherwise indicated) 

1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter %Change 

2007 2006 2006 2006 2006 06:1-07:1 

Asset Size Distribution 

$100 Million $1 Billion Greater 

Less than to to than 

$100 Million $1 Billion $10 Billion $10 Billion 

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives ............................... 1,050 1,014 1,013 992 981 7.0 74 639 252 85 

Total assets of institutions reporting derivatives ......................... $8,861,789 $8,832,645 $8,409,669 $8,276,558 $8,025,662 10.4 $5,142 $273,101 $784,998 $7,798,548 

Total deposits of institutions reporting derivatives ...................... 5,742,345 5,749,612 5,429,994 5,403,746 5,251,640 9.3 4,130 218,248 575,849 4,944,117 

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

Derivative Contracts by Underlying Risk Exposure 

146,084,457 132,181,371 127,106,508 120,205,407 111,086,862 31.5 135 16,649 94,115 145,973,557 

Interest rate ....................................................................... 118,592,547 107,433,612 103,198,718 98,738,848 92,291,252 28.5 119 16,248 88,600 118,487,580 

Foreign exchange* .............................................................. 14,167,866 12,564,207 12,226,835 12,256,709 11,248,488 26.0 0 133 3,850 14,163,883 

Equity ............................................................................... 2,317,685 2,270,942 2,218,658 1,902,399 1,420,814 63.1 15 236 1,006 2,316,427 

Commodity & other (excluding credit derivatives) ....................... 840,594 893,310 1,558,264 738,026 653,859 28.6 0 3 336 840,254 

Credit ................................................................................ 10,165,765 9,019,299 7,904,034 6,569,425 5,472,449 85.8 0 29 323 10,165,413 

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

Derivative Contracts by Transaction Type 

146,084,457 132,181,371 127,106,508 120,205,407 111,086,862 31.5 135 16,649 94,115 145,973,557 

Swaps ............................................................................... 88,006,829 81,339,522 77,555,615 74,448,925 68,849,645 27.8 21 6,669 65,910 87,934,230 

Futures & forwards ............................................................... 15,307,229 14,881,672 14,482,742 13,788,776 13,044,998 17.3 45 2,311 13,883 15,290,991 

Purchased options ............................................................... 15,737,388 12,944,822 13,301,414 12,367,870 11,579,154 35.9 16 5,278 7,620 15,724,473 

Written options .................................................................... 15,587,925 13,332,188 12,945,812 12,081,029 11,202,378 39.1 53 2,266 5,786 15,579,821 

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

Fair Value of Derivative Contracts 

134,639,371 122,498,203 118,285,583 112,686,600 104,676,175 28.6 135 16,524 93,198 134,529,514 

Interest rate contracts ........................................................... 24,440 23,299 22,719 21,194 20,308 20.3 0 -1 7 24,434 

Foreign exchange contracts .................................................. 74,087 5,324 4,144 4,641 4,012 NM 0 0 -25 74,113 

Equity contracts .................................................................. -18,823 -17,845 -13,526 -9,364 -10,632 77.0 1 9 53 -18,885 

Commodity & other (excluding credit derivatives) ....................... 22,532 2,658 2,562 2,806 2,769 713.7 0 0 2 22,530 

Credit derivatives as guarantor .............................................. 9,033 31,583 14,671 7,311 10,228 -11.7 0 0 0 9,033 

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

Derivative Contracts by Maturity** 

-9,677 -32,745 -14,819 -8,992 -9,223 4.9 0 0 0 -9,677 

Interest rate contracts ........................................... < 1 year 33,255,881 29,551,704 26,615,326 22,679,708 20,701,316 60.6 41 3,054 23,763 33,229,023

 ............................ 1-5 years 33,802,007 31,385,572 30,872,307 31,161,579 29,322,655 15.3 3 7,807 26,548 33,767,649

 ............................ > 5 years 24,684,519 23,273,615 22,518,236 22,835,007 21,145,459 16.7 17 2,791 30,628 24,651,083 

Foreign exchange contracts ................................... < 1 year 8,372,499 7,690,210 6,687,566 7,473,995 6,279,115 33.3 0 20 2,652 8,369,828

 ............................ 1-5 years 1,571,245 1,415,846 1,573,062 1,240,609 1,455,181 8.0 0 9 27 1,571,210

 ............................ > 5 years 624,415 592,897 767,427 518,618 721,164 -13.4 0 7 10 624,398 

Equity contracts ................................................... < 1 year 397,234 341,346 333,262 334,732 288,762 37.6 1 17 189 397,026

 ............................ 1-5 years 236,576 220,856 296,151 219,638 200,405 18.0 7 89 422 236,058

 ............................ > 5 years 74,332 44,858 53,988 44,457 34,279 116.8 0 0 43 74,290 

Commodity & other contracts ................................. < 1 year 271,647 235,107 496,634 230,213 214,997 26.3 0 0 192 271,454

 ............................ 1-5 years 200,533 272,314 274,378 177,869 149,315 34.3 0 3 120 200,410

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

Risk-Based Capital: Credit Equivalent Amount 

23,955 21,581 14,486 10,426 7,324 227.1 0 0 24 23,931 

Total current exposure to tier 1 capital (%) ............................... 22.2 29.2 28.6 33.6 32.8 0.3 0.3 1.5 25.8 

Total potential future exposure to tier 1 capital (%) ..................... 113.1 97.7 99.0 90.2 87.7 0.2 0.3 1.0 132.4 

Total exposure (credit equivalent amount) to tier 1 capital (%) ...... 135.3 126.9 127.6 123.8 120.5 0.5 0.6 2.4 158.2 

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

HELD FOR TRADING 

-2.9 -25.1 -19.3 -3.3 3.6 NM 0.0 0.6 0.2 -3.7 

Number of institutions reporting derivatives ............................... 151 147 147 149 148 2.0 5 40 50 56 

Total assets of institutions reporting derivatives ......................... 7,381,546 7,223,466 6,927,469 6,808,697 6,585,433 12.1 354 17,015 228,498 7,135,678 

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

Derivative Contracts by Underlying Risk Exposure 

4,765,635 4,712,044 4,435,577 4,399,031 4,260,458 11.9 280 13,846 157,985 4,593,523 

Interest rate ........................................................................ 115,845,677 104,691,811 100,299,894 96,221,190 89,810,085 29.0 7 200 36,174 115,809,296 

Foreign exchange ................................................................ 12,769,140 11,788,411 11,207,259 11,206,773 10,214,072 25.0 0 15 2,998 12,766,127 

Equity ............................................................................... 2,313,326 2,266,778 2,214,881 1,898,493 1,416,918 63.3 0 5 427 2,312,894 

Commodity & other .............................................................. 840,345 893,087 1,558,095 737,910 649,704 29.3 0 0 301 840,045 

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

Trading Revenues: Cash & Derivative Instruments 

131,768,488 119,640,087 115,280,129 110,064,365 102,090,779 29.1 7 220 39,899 131,728,362 

Interest rate ........................................................................ 2,404 1,146 546 1,665 1,242 93.6 0 0 13 2,391 

Foreign exchange ................................................................ 1,831 1,613 1,355 2,672 2,311 -20.8 0 0 7 1,824 

Equity ................................................................................ 1,732 1,214 1,827 100 1,801 -3.8 0 0 0 1,732 

Commodity & other (including credit derivatives) ........................ 175 -111 789 272 313 -44.1 0 0 0 175 

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

Share of Revenue 

6,142 3,861 4,517 4,710 5,666 8.4 0 0 21 6,122 

Trading revenues to gross revenues (%) .................................. 4.3 2.9 3.4 3.6 4.6 0.0 -0.1 0.4 4.4 

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

HELD FOR PURPOSES OTHER THAN TRADING 

28.9 19.6 20.7 21.6 26.8 0.0 -0.4 3.3 29.7 

Number of institutions reporting derivatives ............................... 967 935 933 920 905 6.9 67 595 224 81 

Total assets of institutions reporting derivatives ......................... 8,632,061 8,603,028 8,224,981 8,123,920 7,863,162 9.8 4,631 253,250 694,953 7,679,227 

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

Derivative Contracts by Underlying Risk Exposure 

5,578,243 5,588,316 5,304,128 5,299,416 5,138,716 8.6 3,735 201,980 512,881 4,859,646 

Interest rate ........................................................................ 2,746,870 2,741,801 2,898,823 2,517,658 2,481,166 10.7 112 16,048 52,426 2,678,284 

Foreign exchange ................................................................ 119,405 111,928 102,685 100,555 96,178 24.2 0 21 259 119,126 

Equity ............................................................................... 4,359 4,164 3,777 3,906 3,896 11.9 15 231 579 3,533 

Commodity & other .............................................................. 249 223 169 116 4,155 -94.0 0 3 36 210 

Total notional amount ........................................................... 2,870,882 2,858,117 3,005,455 2,622,234 2,585,396 11.0 128 16,303 53,299 2,801,152 

All line items are reported on a quarterly basis. NM - 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 in more total assets. 

FDIC QUARTERLY 12 2007, VOLUME 1, NO. 1 
Blank

Blank

Blank

Blank

Blank

Blank

Blank

Blank

Blank

Blank

Blank

Blank

Blank

Blank

Blank

Blank

Blank

Blank

Blank

Blank

Blank

Blank

Blank

Blank

Blank

Quarterly Banking Profile 

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

(dollar figures in millions) 

4th 3rd 2nd 

1st Quarter Quarter Quarter Quarter 1st Quarter %Change 

2007 2006 2006 2006 2006 06:1-07:1 

Asset Size Distribution 

$100 Million $1 Billion Greater 

Less than to to than 

$100 Million $1 Billion $10 Billion $10 Billion 

Assets Securitized and Sold with Servicing Retained or with Recourse 

or Other Seller-Provided Credit Enhancements 

Number of institutions reporting securitization activities ................................................... 

Outstanding Principal Balance by Asset Type 

127 121 119 120 116 9.5 17 46 21 43 

1-4 family residential loans ....................................................................................... $1,079,891 $738,996 $453,900 $417,800 $392,412 175.2 $91 $148 $1,544 $1,078,108 

Home equity loans ................................................................................................ 9,339 8,905 9,257 9,632 10,768 -13.3 0 0 479 8,860 

Credit card receivables .......................................................................................... 367,796 362,467 422,983 403,434 402,214 -8.6 0 6,279 6,675 354,842 

Auto loans ........................................................................................................... 14,132 16,263 16,781 16,665 16,304 -13.3 0 0 399 13,733 

Other consumer loans ............................................................................................. 27,737 28,673 25,753 24,414 22,165 25.1 0 8 0 27,730 

Commercial and industrial loans .............................................................................. 12,039 10,543 8,404 10,582 10,703 12.5 0 31 4,465 7,542 

All other loans, leases, and other assets* .................................................................. 150,404 144,939 136,330 121,506 109,800 37.0 2 93 1,232 149,077 

Total securitized and sold ......................................................................................... 

Maximum Credit Exposure by Asset Type 

1,661,338 1,310,787 1,073,407 1,004,034 964,366 72.3 93 6,559 14,794 1,639,893 

1-4 family residential loans ....................................................................................... 6,037 6,627 4,619 4,336 4,160 45.1 1 2 17 6,017 

Home equity loans ................................................................................................. 2,368 2,332 2,358 2,358 2,387 -0.8 0 0 21 2,347 

Credit card receivables .......................................................................................... 17,685 19,182 25,084 24,495 23,214 -23.8 0 440 168 17,077 

Auto loans ............................................................................................................ 628 724 813 806 798 -21.3 0 0 16 612 

Other consumer loans ........................................................................................... 1,861 1,882 1,653 1,619 1,612 15.4 0 0 0 1,861 

Commercial and industrial loans .............................................................................. 311 348 407 455 464 -33.0 0 0 82 229 

All other loans, leases, and other assets ................................................................... 1,052 997 761 727 777 35.4 1 25 51 974 

Total credit exposure ................................................................................................ 29,942 32,093 35,695 34,796 33,411 -10.4 2 468 356 29,116 

Total unused liquidity commitments provided to institution's own securitizations ..................... 

Securitized Loans, Leases, and Other Assets 30-89 Days Past Due (%) 

6,119 6,872 7,323 9,359 10,867 -43.7 4 0 0 6,116 

1-4 family residential loans ....................................................................................... 2.11 3.03 2.45 2.07 1.75 0.00 0.06 0.80 2.11 

Home equity loans ................................................................................................ 0.70 0.74 0.72 0.58 0.49 0.00 0.00 1.63 0.65 

Credit card receivables .......................................................................................... 1.91 1.98 2.04 1.92 2.01 0.00 2.36 0.71 1.93 

Auto loans ............................................................................................................ 1.45 1.69 1.31 1.14 1.06 0.00 0.00 0.72 1.47 

Other consumer loans ............................................................................................ 2.42 3.02 3.03 2.62 2.54 0.00 0.00 0.00 2.42 

Commercial and industrial loans .............................................................................. 0.66 0.71 1.17 1.23 1.22 0.00 0.00 1.52 0.16 

All other loans, leases, and other assets ..................................................................... 0.15 0.21 0.23 0.13 0.11 0.00 0.00 0.15 0.15 

Total loans, leases, and other assets ........................................................................... 

Securitized Loans, Leases, and Other Assets 90 Days or More Past Due (%) 

1.87 2.38 1.98 1.75 1.66 0.00 2.26 0.95 1.88 

1-4 family residential loans ....................................................................................... 1.08 1.17 0.90 1.13 1.07 0.00 0.00 0.33 1.08 

Home equity loans ................................................................................................ 0.35 0.50 0.31 0.31 0.30 0.00 0.00 1.01 0.32 

Credit card receivables .......................................................................................... 1.78 1.72 1.60 1.61 1.61 0.00 1.69 0.59 1.80 

Auto loans ............................................................................................................ 0.16 0.26 0.18 0.16 0.17 0.00 0.00 0.10 0.16 

Other consumer loans ............................................................................................ 2.03 2.11 2.13 2.14 2.13 0.00 0.00 0.00 2.03 

Commercial and industrial loans .............................................................................. 0.55 0.66 0.76 0.88 0.94 0.00 0.00 1.22 0.16 

All other loans, leases, and other assets ................................................................... 0.14 0.18 0.20 0.15 0.14 0.00 0.00 0.08 0.14 

Total loans, leases, and other assets ........................................................................... 

Securitized Loans, Leases, and Other Assets Charged-Off (net, YTD, annualized, %) 

1.15 1.21 1.10 1.20 1.19 0.00 1.62 0.71 1.15 

1-4 family residential loans ....................................................................................... 0.01 0.04 0.05 0.03 0.02 0.00 0.00 0.01 0.01 

Home equity loans ................................................................................................ 0.21 0.25 0.19 0.12 0.06 0.00 0.00 3.24 0.05 

Credit card receivables .......................................................................................... 1.12 3.80 2.86 1.90 0.89 0.00 1.19 0.53 1.13 

Auto loans ............................................................................................................ 0.26 0.68 0.45 0.27 0.23 0.00 0.00 0.10 0.26 

Other consumer loans ............................................................................................ 0.38 1.49 1.20 0.71 0.45 0.00 0.00 0.00 0.38 

Commercial and industrial loans .............................................................................. 0.36 1.33 1.17 0.82 0.44 0.00 0.00 0.99 -0.01 

All other loans, leases, and other assets .................................................................... 0.01 -0.01 -0.01 0.00 0.00 0.00 0.00 0.02 0.01 

Total loans, leases, and other assets .......................................................................... 

Seller's Interests in Institution's Own Securitizations - Carried as Loans 

0.27 1.13 1.19 0.81 0.40 0.00 1.14 0.65 0.26 

Home equity loans ................................................................................................ 671 869 728 650 586 14.5 0 0 8 663 

Credit card receivables .......................................................................................... 61,569 75,225 68,885 82,533 72,954 -15.6 0 335 4,405 56,829 

Commercial and industrial loans .............................................................................. 

Seller's Interests in Institution's Own Securitizations - Carried as Securities 

2,863 2,596 2,891 3,284 2,523 13.5 0 0 961 1,902 

Home equity loans ................................................................................................ 10 10 11 12 12 -16.7 0 0 0 10 

Credit card receivables .......................................................................................... 281 322 184 137 72 290.3 0 35 246 0 

Commercial and industrial loans ............................................................................... 

Assets Sold with Recourse and Not Securitized 

1 5 0 0 0 0.0 0 0 0 1 

Number of institutions reporting asset sales .................................................................. 

Outstanding Principal Balance by Asset Type 

726 715 708 698 691 5.1 168 421 94 43 

1-4 family residential loans ....................................................................................... 56,074 56,102 56,002 54,319 53,866 4.1 940 6,552 2,294 46,289 

Home equity, credit card receivables, auto, and other consumer loans ............................. 1,904 708 115 124 902 111.1 2 28 12 1,862 

Commercial and industrial loans ............................................................................... 8,198 6,668 6,781 6,184 6,112 34.1 16 87 324 7,770 

All other loans, leases, and other assets ..................................................................... 8,103 6,981 7,403 12,998 16,607 -51.2 2 47 195 7,859 

Total sold and not securitized .................................................................................... 

Maximum Credit Exposure by Asset Type 

74,278 70,458 70,302 73,625 77,487 -4.1 960 6,714 2,825 63,779 

1-4 family residential loans ....................................................................................... 14,185 13,537 13,698 12,167 11,987 18.3 60 1,373 1,490 11,262 

Home equity, credit card receivables, auto, and other consumer loans .............................. 1,868 663 47 64 485 285.2 2 7 6 1,852 

Commercial and industrial loans ............................................................................... 4,543 4,499 4,479 4,272 4,132 9.9 16 56 324 4,146 

All other loans, leases, and other assets .................................................................... 2,428 2,530 2,502 2,161 2,678 -9.3 2 16 92 2,317 

Total credit exposure ............................................................................................... 

Support for Securitization Facilities Sponsored by Other Institutions 

23,024 21,229 20,726 18,663 19,281 19.4 81 1,453 1,913 19,577 

Number of institutions reporting securitization facilities sponsored by others ........................ 47 47 48 46 45 4.4 22 14 3 8 

Total credit exposure ................................................................................................ 1,348 1,135 958 853 897 50.3 6 122 69 1,150 

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

Other 

5,827 6,257 5,066 4,251 4,651 25.3 0 0 0 5,827 

Assets serviced for others** ....................................................................................... 

Asset-backed commercial paper conduits 

3,494,590 3,392,152 3,072,169 2,836,997 2,647,319 32.0 7,388 69,259 91,471 3,326,473 

Credit exposure to conduits sponsored by institutions and others .................................... 21,404 20,714 19,244 19,293 17,503 22.3 2 83 1 21,318 

Unused liquidity commitments to conduits sponsored by institutions and others .................. 327,395 306,435 294,329 286,363 288,086 13.6 0 0 0 327,395 

Net servicing income (for the quarter) ........................................................................... 3,600 2,161 3,381 4,262 4,693 -23.3 46 172 134 3,249 

Net securitization income (for the quarter) ...................................................................... 5,051 2,407 6,832 6,225 6,705 -24.7 0 211 156 4,684 

Total credit exposure to Tier 1 capital (%)*** .................................................................. 5.7 5.8 6.1 5.9 6.0 0.4 1.6 1.8 7.5 

*Line item titled "All other loans and all leases" for quarters prior to March 31, 2006. 

**The amount of financial assets serviced for others, other than closed-end 1-4 family residential mortgages, is reported when these assets are greater than $10 million 

***Total credit exposure includes the sum of the three line items titled "Total credit exposure" reported above. 

FDIC QUARTERLY 13 2007, VOLUME 1, NO. 1 
Insurance Fund Indicators 

Insured Deposits Grow by 2.0 Percent, Up from the Prior Quarter’s 

1.3 Percent Growth Rate 

DIF Reserve Ratio Declines 1 Basis Point to 1.20 Percent 

Risk-based Assessment Changes Became Effective January 1, 2007 

One Institution Fails During First Quarter 

Total assets of the nation’s 8,650 FDIC-insured commercial banks and savings institutions increased by 

$120.8 billion (1.0 percent) during the first quarter of 

2007. Fifty-eight percent of the quarter’s asset growth 

was funded by deposits, as interest-bearing deposits 

increased by 1.8 percent ($115.5 billion), while noninterest-bearing deposits decreased by 3.6 percent ($45.5 

billion). Domestic office deposits increased by 1.0 percent ($63.4 billion), and foreign office deposits 

increased by 0.6 percent ($6.6 billion). 

Estimated insured deposits rose by 2.0 percent ($84 billion) during the first three months of 2007, after a 6.7 

percent rise for all of 2006. The first-quarter increase 

was up from the previous quarter’s 1.3 percent growth 

rate. For institutions existing as of December 31, 2006 

and March 31, 2007, insured deposits increased during 

the first quarter at 6,151 institutions (71 percent), 

decreased at 2,409 institutions (28 percent), and 

remained unchanged at 49 institutions. 

The Deposit Insurance Fund (DIF) increased by 1.2 

percent ($580 million) during the first quarter to 

$50,745 million (unaudited). Accrued assessment 

income added $94 million to the DIF during the quarter. This amount was determined by subtracting $820 

million in estimated credits used from $914 million in 

gross assessment revenue. Approximately 83 percent of 

all FDIC-insured institutions have credits to offset 

either some or all of their first quarter assessments. The 

DIF increased $81 million from unrealized gains on 

available-for-sale securities, $73 million from a decrease 

in provisions for insurance losses, and $332 million (net 

of expenses) from interest on securities and other revenue. 

The DIF’s growth was not enough to offset the increase 

in insured deposits, and the reserve ratio decreased from 

1.21 percent on December 31, 2006 to 1.20 percent on 

March 31, 2007. Since the beginning of 2006, the DIF 

reserve ratio has dropped five basis points, from 1.25 

percent to 1.20 percent. 

On February 2, 2007, the FDIC had its first institution 

failure since June of 2004, ending ten consecutive quarters without a failure, the longest time span on record. 

Changes to Risk-Based Assessments from the 

Reform Legislation 

On February 8, 2006, the President signed the Federal 

Deposit Insurance Reform Act of 2005 (the Reform 

Act) into law. The Federal Deposit Insurance Reform 

Conforming Amendments Act of 2005 was signed into 

law on February 15, 2006 and contains necessary technical and conforming changes to implement deposit 

insurance requirements. All final rules implementing 

changes to risk-based assessments were adopted by the 

FDIC Board by early November of 2006, and generally 

became effective January 1, 2007. 

New Risk Categories and Assessment Rate Schedule 

The previous nine risk categories (the risk-based assessment matrix) are consolidated into four categories to 

better align them with their respective historical failure 

and loss experience. Capital ratios and supervisory ratings will continue to distinguish one risk category from 

another. The following table shows the translation of 

the old nine-cell matrix to the new risk categories as 

well as the initial assessment rates (in basis points) for 

each new risk category. In this table, 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. 

These initial assessment rates are effective beginning 

January 1, 2007 and are 3 basis points above the base 

rate schedule adopted in the final rule. The FDIC may 

adjust rates up or down by 3 basis points from the base 

rate schedule without notice and comment, provided 

FDIC QUARTERLY 14 2007, VOLUME 1, NO. 1 
Authors:

Authors:

Authors:

Authors:

Authors:

Authors:

Quarterly Banking Profile 

Risk Categories and Assessment Rate Schedule 

Effective January 1, 2007 

Supervisory Group 

Capital Category A B C 

I 

1. Well Capitalized 5-7 bps III II 

28 bps 10 bps 2. Adequately Capitalized 

3. Undercapitalized III IV

28 bps 43 bps

that any single adjustment from one quarter to the next 

cannot move rates more than 3 basis points. 

Determining Risk-Based Assessment Rates for Institutions in 

Risk Category I 

The spread between the lowest and highest risk-based 

assessment rates in Risk Category I is 2 basis points. 

For most institutions in Risk Category I – all but 

insured branches of foreign banks and institutions that 

have at least $10 billion in assets and a long-term debt 

issuer rating – the assessment rate assigned will be 

based on a combination of financial ratios and 

CAMELS component ratings. Rates determined from 

these risk measures were derived from a model that 

relates them to the historical frequency of CAMELS 

downgrades to ‘3’ or worse in the succeeding year. 

For large institutions (generally those with at least $10 

billion in assets) that have long-term debt issuer ratings, assessment rates will be determined by weighting 

CAMELS component ratings 50 percent and long-term 

debt issuer ratings 50 percent. For all large Risk Category I institutions, additional risk factors will be considered to determine whether assessment rates should be 

adjusted. This additional information includes market 

data, financial performance measures, considerations of 

the ability of an institution to withstand financial 

stress, and loss severity indicators. Any adjustment will 

be limited to no more than 1⁄2 basis point. 

Operational Changes to the Assessment System 

Insured depository institutions will no longer be 

assigned a risk-based assessment for a semiannual period 

before the start of the semiannual period. Instead, 

beginning in 2007, each institution will be assigned a 

risk-based rate for a quarterly assessment period near 

the end of the quarter following the assessment period. 

Payment will generally be due on the 30th day of the 

last month of the quarter following the assessment period. 

Supervisory rating changes will be effective for assessment purposes as of the examination transmittal date. 

For institutions with long-term debt issuer ratings, 

changes in ratings will be effective for assessment purposes as of the date the change was announced. 

The assessment base will be based on the average daily 

deposits for banks with $1 billion or more in assets, 

effective no later than March 31, 2008. Until then, 

any existing institution may choose whether to have its 

assessment base determined from quarter-end or average 

daily deposits. Thereafter, an institution with less than 

$1 billion in assets may continue to choose to have its 

assessment base determined from quarter-end or average 

daily deposits. However, once an institution elects to 

report average daily deposits, it must continue to do so 

thereafter. The standard float deduction that had been 

used to determine the assessment base has been eliminated effective the first quarter of 2007. 

Assessment Credits 

Congress awarded an aggregate assessment credit of 

$4.7 billion that has been distributed among all eligible 

insured depository institutions. An eligible insured 

depository institution is one that was in existence on 

December 31, 1996 and that paid assessments before 

that date (or is the successor to such an institution). 

Each institution’s credit amount was based on the ratio 

of the institution’s assessment base (plus its predecessors’ assessment bases, if any) on December 31, 1996 to 

the combined total of all eligible insured depository 

institution assessment bases. The FDIC will apply 

whatever credits an institution has available to its quarterly assessment, subject to certain statutory limitations. 

Credits do not expire. 

Authors: Kevin Brown 

Sr. Financial Analyst 

(202) 898-6817 

Brian Lewis 

Sr. Financial Analyst 

(202 898-6510 

Division of Insurance and Research, FDIC 

FDIC QUARTERLY 15 2007, VOLUME 1, NO. 1 
 

 

 

TABLE I-B. Insurance Fund Balances and Selected Indicators 

(dollar figures in millions) Deposit Insurance Fund 

1st Quarter 

2007 

4th Quarter 

2006 

3rd Quarter 

2006 

2nd Quarter 

2006 

1st Quarter 

2006 

4th Quarter 

2005 

3rd Quarter 

2005 

2nd Quarter 

2005 

Beginning Fund Balance*.......................................... 

Changes in Fund Balance: 

$50,165 $49,992 $49,564 $49,193 $48,597 $48,373 $48,023 $47,617 

Assessments earned................................................... 94 10 10 7 5 13 20 14 

Interest earned on investment securities........................ 567 476 622 665 478 675 536 657 

Operating expenses................................................... 239 248 237 242 224 252 227 254 

Provision for insurance losses....................................... -73 49 -50 -6 -45 -19 -65 -57 

All other income, net of expenses**................................. 

Unrealized gain/(loss) on available-for-sale 

4 5 1 12 349 4 3 4 

securities............................................................... 81 -21 -18 -77 -57 -235 -47 -72 

Total fund balance change.......................................... 580 173 428 371 596 224 350 406 

Ending Fund Balance*................................................ 50,745 50,165 49,992 49,564 49,193 48,597 48,373 48,023

 Percent change from four quarters earlier..................... 3.15 3.23 3.35 3.21 3.31 2.29 2.94 3.23 

Reserve Ratio (%)...................................................... 1.20 1.21 1.22 1.23 1.23 1.25 1.26 1.28 

Estimated Insured Deposits ....................................... 4,237,269 4,152,909 4,099,424 4,040,211 4,001,921 3,890,874 3,830,898 3,757,728

 Percent change from four quarters earlier..................... 5.88 6.73 7.01 7.52 8.50 7.42 7.62 6.40 

Assessment Base 6,803,266 6,595,293 6,439,293 6,386,880 6,272,524 6,177,373 6,038,813 5,878,968

 Percent change from four quarters earlier..................... 8.46 6.77 6.63 8.64 8.15 8.87 9.47 8.36 

Number of institutions reporting................................. 8,662 8,693 8,755 8,790 8,803 8,845 8,870 8,881 

DIF Reserve Ratio* 

Percent of Insured Deposits 

1.36 

1.32 

1.28 

1.24 

1.20 

1.16 

1.12 

6/03 12/03 6/04 12/04 6/05 12/05 6/06 12/06 

1.31 

1.34 1.33 1.33 1.32 1.32 1.31 

1.29 1.28 

1.26 1.25 

1.23 1.23 1.22 1.21 1.20 

TABLE II-B. Problem Institutions and Failed/Assisted Institutions 

Deposit Insurance Fund Balance and 

Insured Deposits* 

($Millions) DIF-Insured 

DIF Balance Deposits 

6/03 44,883 3,438,360 

9/03 45,648 3,414,317 

12/03 46,022 3,452,503 

3/04 46,558 3,499,469 

6/04 46,521 3,531,806 

9/04 46,990 3,559,489 

12/04 47,507 3,622,068 

3/05 47,617 3,688,562 

6/05 48,023 3,757,728 

9/05 48,373 3,830,898 

12/05 48,597 3,890,874 

3/06 49,193 4,001,921 

6/06 49,564 4,040,211 

9/06 49,992 4,099,424 

12/06 50,165 4,152,909 

3/07 50,745 4,237,269 

(dollar figures in millions) 2007*** 2006*** 2006 2005 2004 2003 2002 

Problem Institutions

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

Total assets................................................................................... 

Failed/Assisted Institutions

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

Total assets................................................................................... 

53 

$21,445 

1 

$15 

48 

$5,416 

0 

$0 

50 

$8,265 

0 

$0 

52 

$6,607 

0 

$0 

80 

$28,250 

$166 

116 

$29,917 

$1,097 

136

$38,927 

1 

$2,558 

* Prior to 2006, amounts represent sum of separate BIF and SAIF amounts. 

** First Quarter 2006 includes previously escrowed revenue from SAIF-member exit fees. 

*** Through March 31. 

FDIC QUARTERLY 16 2007, VOLUME 1, NO. 1 
Quarterly Banking Profile 

TABLE III-B. Estimated FDIC-Insured Deposits by Type of Institution 

(dollar figures in millions) 

March 31, 2007 

Commercial Banks and Savings Institutions

Number of 

Institutions 

Total 

Assets 

Domestic 

Deposits* 

Est. Insured 

Deposits 

FDIC-Insured Commercial Banks ............... 7,380 10,133,829 5,522,318 3,325,503 

FDIC-Supervised ................................. 4,783 1,882,524 1,411,780 946,052 

OCC-Supervised ................................. 1,705 6,848,249 3,281,580 1,871,203 

Federal Reserve-Supervised .................. 892 1,403,056 828,958 508,249 

FDIC-Insured Savings Institutions ............... 1,270 1,847,339 1,172,174 906,291 

OTS-Supervised Savings Institutions ......... 837 1,543,349 955,830 738,426 

FDIC-Supervised State Savings Banks ...... 

Total Commercial Banks and

433 303,991 216,344 167,864 

Savings Institutions .............................. 

Other FDIC-Insured Institutions

8,650 11,981,168 6,694,491 4,231,794 

U.S. Branches of Foreign Banks ................ 12 17,076 7,506 5,474 

Total FDIC-Insured Institutions .................. 8,662 11,998,244 6,701,998 4,237,269 

*Excludes $1,201 billion in foreign office deposits, which are uninsured. 

TABLE IV-B. Assessment Base Distribution and Rate Schedules 

Table IV-B, which shows the distribution of institutions and assessment bases among risk categories, is not included in this edition of the Quarterly Banking Profile. As a result of final regulations implementing the Federal Deposit 

Insurance Reform Act of 2005, insured depository institutions will no longer be assigned a risk-based assessment 

rate for a semiannual period before the start of the semiannual period. Instead, beginning in 2007, each institution 

will be assigned a risk-based rate for a quarterly assessment period near the end of the following quarter. The next 

edition will present a revised Table IV-B, which will show the distribution of institutions and assessment bases 

among the new risk categories adopted in the regulations for the quarter ending March 31, 2007. 

FDIC QUARTERLY 17 2007, VOLUME 1, NO. 1 
Notes To Users 

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance Corporation (FDIC). These notes are an integral part of this publication 

and provide information regarding the comparability of source data 

and reporting differences over time. 

Tables I-A through VIII-A. 

The information presented in Tables I-A through V-A of the FDIC 

Quarterly Banking Profile is aggregated for all FDIC-insured Institutions, both commercial banks and savings institutions. Tables VI-A 

(Derivatives) and VII-A (Servicing, Securitization, and Asset Sales 

Activities) aggregate information only for insured commercial banks 

and state-chartered savings banks that file quarterly Call Reports. 

Table VIII-A Trust Services aggregates Trust asset and income information collected annually from all FDIC-insured institutions. Some 

tables are arrayed by groups of FDIC-insured institutions based on 

predominant types of asset concentration, while other tables aggregate institutions by asset size and geographic region. Quarterly and 

full-year data are provided for selected indicators, including aggregate 

condition and income data, performance ratios, condition ratios and 

structural changes, as well as past due, noncurrent and charge-off 

information for loans outstanding and other assets. 

Tables I-B through IV-B. 

A separate set of tables (Tables I-B through IV-B) provides comparative quarterly data related to the Deposit Insurance Fund (DIF), problem institutions, failed/assisted institutions, estimated FDIC-insured 

deposits, as well as assessment rate information. Depository institutions that are not insured by the FDIC through the DIF are not 

included in the FDIC Quarterly Banking Profile. U.S. branches of 

institutions headquartered in foreign countries and non-deposit trust 

companies are not included unless otherwise indicated. Efforts are 

made to obtain financial reports for all active institutions. However, 

in some cases, final financial reports are not available for institutions 

that have closed or converted their charters. 

DATA SOURCES 

The financial information appearing in this publication is obtained 

primarily from the Federal Financial Institutions Examination Council (FFIEC) Call Reports and the OTS Thrift Financial Reports submitted by all FDIC-insured depository institutions. This information is 

stored on and retrieved from the FDIC’s Research Information System 

(RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial Reports to 

provide closer conformance with the reporting and accounting 

requirements of the FFIEC Call Reports. Parent institutions are 

required to file consolidated reports, while their subsidiary financial 

institutions are still required to file separate reports. Data from subsidiary institution reports are included in the Quarterly Banking Profile 

tables, which can lead to double-counting. No adjustments are made 

for any double-counting of subsidiary data. 

All asset and liability figures used in calculating performance ratios 

represent average amounts for the period (beginning-of-period 

amount plus end-of-period amount plus any interim periods, divided 

by the total number of periods). For “pooling-of-interest” mergers, the 

assets of the acquired institution(s) are included in average assets 

since the year-to-date income includes the results of all merged institutions. No adjustments are made for “purchase accounting” mergers. 

Growth rates represent the percentage change over a 12-month period in totals for institutions in the base period to totals for institutions 

in the current period. 

All data are collected and presented based on the location of each 

reporting institution's main office. Reported data may include assets 

and liabilities located outside of the reporting institution’s home state. 

In addition, institutions may relocate across state lines or change their 

charters, resulting in an inter-regional or inter-industry migration, 

e.g., institutions can move their home offices between regions, and 

savings institutions can convert to commercial banks or commercial 

banks may convert to savings institutions. 

ACCOUNTING CHANGES 

FASB Statement No. 157 Fair Value Measurements issued in September 2006 

and FASB Statement No. 159 The Fair Value Option for Financial Assets and 

Financial Liabilities issued in February 2007 – both are effective in 2008 

with early adoption permitted in 2007. FAS 157 defines a fair value 

measurement framework, while FAS 159 allows banks to elect a fair 

value option when assets are recognized on the balance sheet and to 

report certain financial assets and liabilities at fair value with subsequent changes in fair value included in earnings. Existing eligible 

items can be fair-valued as early as January 2007 under FAS 159, if 

a bank adopts FAS 157. 

FASB Statement 158 Employers’ Accounting for Defined Benefit Pension and 

Other Postretirement Plans – issued in September 2006 requires a bank 

to recognize in 2007 the funded status of its postretirement plans on 

its balance sheet. An overfunded plan is recognized as an asset and 

an underfunded plan is recognized as a liability. An adjustment is 

made to equity as accumulated other comprehensive income 

(AOCI) upon application of FAS 158 and AOCI is adjusted in subsequent periods as net periodic benefit costs are recognized in earnings. 

FASB Statement No. 156 Accounting for Servicing of Financial Assets – issued 

in March 2006 and effective in 2007, requires all separately recognized servicing assets and liabilities to be initially measured at fair 

value and allows a bank the option to subsequently adjust that 

value by periodic revaluation and recognition of earnings or by periodic amortization to earnings. 

Purchased Impaired Loans and Debt Securities – Statement of Position 03-

3, Accounting for Certain Loans or Debt Securities Acquired in a Transfer. 

The SOP applies to loans and debt securities acquired in fiscal years 

beginning after December 15, 2004. In general, this Statement of 

Position applies to “purchased impaired loans and debt securities,” i.e., 

loans and debt securities that a bank has purchased, including those 

acquired in a purchase business combination, when it is probable, at 

the purchase date, that the bank will be unable to collect all contractually required payments receivable. Banks must follow Statement of 

Position 03-3 for Call Report purposes. The SOP does not apply to 

the loans that a bank has originated, prohibits “carrying over” or creation of valuation allowances in the initial accounting and any subsequent valuation allowances reflect only those losses incurred by the 

investor after acquisition. 

GNMA Buy-back Option – If an issuer of GNMA securities has the 

option to buy back the loans that collateralize the GNMA securities, 

when certain delinquency criteria are met, FASB Statement No. 140 

requires that loans with this buy-back option must be brought back 

on the issuer's books as assets. The rebooking of GNMA loans is 

required regardless of whether the issuer intends to exercise the buyback option. The banking agencies clarified in May 2005 that all 

GNMA loans that are rebooked because of delinquency should be 

reported as past due according to their contractual terms. 

FDIC QUARTERLY 18 2007, VOLUME 1, NO. 1 
Quarterly Banking Profile 

FASB Interpretation No. 45 – In November 2002, the FASB issued Interpretation No. 45, Guarantor’s Accounting and Disclosure Requirements 

for Guarantees, Including Indirect Guarantees of Indebtedness of Others. 

This interpretation clarifies that a guarantor is required to recognize, 

at the inception of a guarantee (financial standby letters of credit, performance standby letters of credit), a liability for the fair value of the 

obligation undertaken in issuing the guarantee. Banks apply the initial recognition and measurement provisions of Interpretation No. 45 

on a prospective basis to guarantees issued or modified after December 

31, 2002, irrespective of the bank’s fiscal year end. A bank’s previous 

accounting for guarantees issued prior to January 1, 2003, is not 

revised. 

FASB Interpretation No. 46 – The FASB issued Interpretation No. 46, 

Consolidation of Variable Interest Entities, in January 2003 and revised it 

in December 2003. Generally, banks with variable interests in variable interest entities created after December 31, 2003, must consolidate them. The timing of consolidation varies with certain situations 

with application as late as 2005. The assets and liabilities of a consolidated variable interest entity are reported on a line-by-line basis 

according to the asset and liability categories shown on the bank’s balance sheet, as well as related income items. Most small banks are 

unlikely to have any “variable interests” in variable interest entities. 

FASB Statement No. 123 (Revised 2004) and Share-Based Payments 

– requires all entities to recognize compensation expense in an 

amount equal to the fair value of share-based payments, e.g., stock 

options and restricted stock, granted to employees. As of January 2006 

all banks must adopt FAS 123(R). The compensation cost is typically 

recognized over the vesting period with a corresponding credit to 

equity. The recording of the compensation cost also gives rise to a 

deferred tax asset. 

Goodwill and intangible assets – FAS 141 terminates the use of pooling-of-interest accounting for business combinations after 2001 and 

requires purchase accounting. Under FAS 142 amortization of goodwill is eliminated. Only intangible assets other than goodwill are 

amortized each quarter. In addition companies are required to test for 

impairment of both goodwill and other intangibles once each fiscal 

year. The year 2002, the first fiscal year affected by this accounting 

change, has been designated a transitional year and the amount of initial impairments are to be recorded as extraordinary losses on a “net of 

tax” basis (and not as noninterest expense). Subsequent annual 

review of intangibles and goodwill impairment may require additional 

noninterest expense recognition. FASB Statement No. 147 clarifies 

that acquisitions of financial institutions (except transactions between 

two or more mutual enterprises), including branch acquisitions that 

meet the definition of a business combination, should be accounted 

for by the purchase method under FASB Statement No. 141. This 

accounting standard includes transition provisions that apply to 

unidentifiable intangible assets previously accounted for in accordance 

with FASB Statement No. 72. If the transaction (such as a branch 

acquisition) in which an unidentifiable intangible asset arose does not 

meet the definition of a business combination, this intangible asset is 

not be reported as “Goodwill” on the Call Report balance sheet. 

Rather, this unidentifiable intangible asset is reported as “Other intangible assets,” and must continue to be amortized and the amortization 

expense should be reported in the Call Report income statement. 

FASB Statement No. 133 Accounting for Derivative Instruments and Hedging 

Activities – All banks must recognize derivatives as either assets or liabilities on the balance sheet, measured at fair value. A derivative may 

be specifically designated as a “fair value hedge,” a “cash flow hedge,” 

or a hedge of a foreign currency exposure. The accounting for 

changes in the value of a derivative (gains and losses) depends on the 

intended use of the derivative, its resulting designation, and the effectiveness of the hedge. Derivatives held for purposes other than trading are reported as “other assets” (positive fair values) or “other 

liabilities” (negative fair values). For a fair value hedge, the gain or 

loss is recognized in earnings and “effectively” offsets loss or gain on 

the hedged item attributable to the risk being hedged. Any ineffectiveness of the hedge could result in a net gain or loss on the income 

statement. Accumulated net gains (losses) on cash flow hedges are 

recorded on the balance sheet as “accumulated other comprehensive 

income” and the periodic change in the accumulated net gains (losses) for cash flow hedges is reflected directly in equity as the value of 

the derivative changes. FASB Statement No. 149, Amendment of 

Statement 133 on Derivative Instruments and Hedging Activities 

provides guidance on the circumstances in which a loan commitment 

must be accounted for as derivative. Under Statement No. 149, loan 

commitments that relate to the origination of mortgage loans that will 

be held for sale, commonly referred to as interest rate lock commitments, must be accounted for as derivatives on the balance sheet by 

the issuer of the commitment. 

DEFINITIONS (in alphabetical order) 

All other assets – total cash, balances due from depository institutions, 

premises, fixed assets, direct investments in real estate, investment in 

unconsolidated subsidiaries, customers’ liability on acceptances outstanding, assets held in trading accounts, federal funds sold, securities 

purchased with agreements to resell, fair market value of derivatives, 

and other assets. 

All other liabilities – bank's liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses, 

fair market value of derivatives, and other liabilities. 

Assets securitized and sold – total outstanding principal balance of 

assets securitized and sold with servicing retained or other sellerprovided credit enhancements. 

Construction and development loans – includes loans for all property 

types under construction, as well as loans for land acquisition and 

development. 

Core capital – common equity capital plus noncumulative perpetual 

preferred stock plus minority interest in consolidated subsidiaries, less 

goodwill and other ineligible intangible assets. The amount of eligible 

intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations. 

Cost of funding earning assets – total interest expense paid on deposits 

and other borrowed money as a percentage of average earning assets. 

Credit enhancements – techniques whereby a company attempts to 

reduce the credit risk of its obligations. Credit enhancement may be 

provided by a third party (external credit enhancement) or by the 

originator (internal credit enhancement), and more than one type of 

enhancement may be associated with a given issuance. 

Deposit Insurance Fund (DIF) – The Bank (BIF) and Savings Association (SAIF) Insurance Funds were merged in 2006 by the Federal 

Deposit Insurance Reform Act to form the DIF. 

Derivatives notional amount – The notional or contractual amounts of 

derivatives represent the level of involvement in the types of derivatives transactions and are not a quantification of market risk or credit 

risk. Notional amounts represent the amounts used to calculate contractual cash flows to be exchanged. 

Derivatives credit equivalent amount – the fair value of the derivative 

plus an additional amount for potential future credit exposure based 

FDIC QUARTERLY 19 2007, VOLUME 1, NO. 1 
on the notional amount, the remaining maturity and type of the 

contract. 

Derivatives transaction types: 

Futures and forward contracts – contracts in which the buyer agrees 

to purchase and the seller agrees to sell, at a specified future date, 

a specific quantity of an underlying variable or index at a specified price or yield. These contracts exist for a variety of variables 

or indices, (traditional agricultural or physical commodities, as 

well as currencies and interest rates). Futures contracts are standardized and are traded on organized exchanges which set limits 

on counterparty credit exposure. Forward contracts do not have 

standardized terms and are traded over the counter. 

Option contracts – contracts in which the buyer acquires the right 

to buy from or sell to another party some specified amount of an 

underlying variable or index at a stated price (strike price) during 

a period or on a specified future date, in return for compensation 

(such as a fee or premium). The seller is obligated to purchase or 

sell the variable or index at the discretion of the buyer of the contract. 

Swaps – obligations between two parties to exchange a series of 

cash flows at periodic intervals (settlement dates), for a specified 

period. The cash flows of a swap are either fixed, or determined 

for each settlement date by multiplying the quantity (notional 

principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged. 

Derivatives underlying risk exposure – the potential exposure characterized by the level of banks’ concentration in particular underlying 

instruments, in general. Exposure can result from market risk, credit 

risk and operational risk, as well as, interest rate risk. 

Domestic deposits to total assets – total domestic office deposits as a percent of total assets on a consolidated basis. 

Earning assets – all loans and other investments that earn interest or 

dividend income. 

Efficiency ratio – Noninterest expense less amortization of intangible 

assets as a percent of net interest income plus noninterest income. 

This ratio measures the proportion of net operating revenues that are 

absorbed by overhead expenses, so that a lower value indicates greater 

efficiency. 

Estimated insured deposits – in general, insured deposits are total 

domestic deposits minus estimated uninsured deposits. Prior to June 

30, 2000 the uninsured estimate is calculated as the sum of the excess 

amounts in accounts over $100,000. Beginning June 30, 2000 the 

amount of estimated uninsured deposits is adjusted to consider a 

financial institution's own estimate of uninsured deposits when such 

an estimate is reported. Beginning in 2006 the uninsured deposits estimate also considers IRA accounts over $250,000. 

Failed/assisted institutions – an institution fails when regulators take 

control of the institution, placing the assets and liabilities into a 

bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover 

losses. An institution is defined as “assisted” when the institution 

remains open and receives some insurance funds in order to continue 

operating. 

FHLB advances – all borrowings by FDIC insured institutions from the 

Federal Home Loan Bank System (FHLB), as reported by Call Report 

filers and by TFR filers. 

Goodwill and other intangibles – intangible assets include servicing 

rights, purchased credit card relationships and other identifiable 

intangible assets. Goodwill is the excess of the purchase price over the 

fair market value of the net assets acquired. 

Loans secured by real estate – includes home equity loans, junior liens 

secured by 1-4 family residential properties and all other loans secured 

by real estate. 

Loans to individuals – includes outstanding credit card balances and 

other secured and unsecured consumer loans. 

Long-term assets (5+ years) – loans and debt securities with remaining 

maturities or repricing intervals of over five years. 

Maximum credit exposure – the maximum contractual credit exposure 

remaining under recourse arrangements and other seller-provided 

credit enhancements provided by the reporting bank to securitizations. 

Mortgage-backed securities – certificates of participation in pools of residential mortgages and collateralized mortgage obligations issued or 

guaranteed by government-sponsored or private enterprises. Also, see 

“Securities”, below. 

Net charge-offs – total loans and leases charged off (removed from balance sheet because of uncollectibility), less amounts recovered on 

loans and leases previously charged off. 

Net interest margin – the difference between interest and dividends 

earned on interest-bearing assets and interest paid to depositors and 

other creditors, expressed as a percentage of average earning assets. 

No adjustments are made for interest income that is tax exempt. 

Net loans to total assets – loans and lease financing receivables, net of 

unearned income, allowance and reserves, as a percent of total assets 

on a consolidated basis. 

Net operating income – income excluding discretionary transactions 

such as gains (or losses) on the sale of investment securities and 

extraordinary items. Income taxes subtracted from operating income 

have been adjusted to exclude the portion applicable to securities 

gains (or losses). 

Noncurrent assets – the sum of loans, leases, debt securities and other 

assets that are 90 days or more past due, or in nonaccrual status. 

Noncurrent loans & leases – the sum of loans and leases 90 days or 

more past due, and loans and leases in nonaccrual status. 

Number of institutions reporting – the number of institutions that actually filed a financial report. 

Other borrowed funds – federal funds purchased, securities sold with 

agreements to repurchase, demand notes issued to the U.S. Treasury, 

FHLB advances, other borrowed money, mortgage indebtedness, obligations under capitalized leases and trading liabilities, less revaluation 

losses on assets held in trading accounts. 

Other real estate owned – primarily foreclosed property. Direct and 

indirect investments in real estate ventures are excluded. The amount 

is reflected net of valuation allowances. For institutions that file a 

Thrift Financial Report (TFR), the valuation allowance subtracted 

also includes allowances for other repossessed assets. Also, for TFR 

filers the components of other real estate owned are reported gross of 

valuation allowances. 

Percent of institutions with earnings gains – the percent of institutions 

that increased their net income (or decreased their losses) compared 

to the same period a year earlier. 

“Problem” institutions – federal regulators assign a composite rating to 

each financial institution, based upon an evaluation of financial and 

operational criteria. The rating is based on a scale of 1 to 5 in ascending order of supervisory concern. “Problem” institutions are those 

institutions with financial, operational, or managerial weaknesses that 

FDIC QUARTERLY 20 2007, VOLUME 1, NO. 1 
Quarterly Banking Profile 

threaten their continued financial viability. Depending upon the 

degree of risk and supervisory concern, they are rated either a “4” or 

“5”. For all insured commercial banks and for insured savings banks 

for which the FDIC is the primary federal regulator, FDIC composite 

ratings are used. For all institutions whose primary federal regulator is 

the OTS, the OTS composite rating is used. 

Recourse – an arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it 

has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank’s claim on the asset. If a 

bank has no claim on an asset it has sold, then the retention of any 

credit risk is recourse. 

Reserves for losses – the allowance for loan and lease losses on a consolidated basis. 

Restructured loans and leases – loan and lease financing receivables 

with terms restructured from the original contract. Excludes restructured loans and leases that are not in compliance with the modified 

terms. 

Retained earnings – net income less cash dividends on common and 

preferred stock for the reporting period. 

Return on assets – net income (including gains or losses on securities 

and extraordinary items) as a percentage of average total assets. The 

basic yardstick of bank profitability. 

Return on equity – net income (including gains or losses on securities 

and extraordinary items) as a percentage of average total equity capital. 

Risk-weighted assets – assets adjusted for risk-based capital definitions 

which include on-balance-sheet as well as off-balance-sheet items 

multiplied by risk-weights that range from zero to 100 percent. A 

conversion factor is used to assign a balance sheet equivalent amount 

for selected off-balance-sheet accounts. 

Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity”, 

which are reported at amortized cost (book value), and securities designated as “available-for-sale”, reported at fair (market) value. 

Securities gains (losses) – realized gains (losses) on held-to-maturity and 

available-for-sale securities, before adjustments for income taxes. 

Thrift Financial Report (TFR) filers also include gains (losses) on the 

sales of assets held for sale. 

Seller’s interest in institution’s own securitizations – the reporting bank’s 

ownership interest in loans and other assets that have been securitized, except an interest that is a form of recourse or other seller-provided credit enhancement. Seller’s interests differ from the securities 

issued to investors by the securitization structure. The principal 

amount of a seller’s interest is generally equal to the total principal 

amount of the pool of assets included in the securitization structure 

less the principal amount of those assets attributable to investors, i.e., 

in the form of securities issued to investors. 

Subchapter S Corporation – A Subchapter S corporation is treated as a 

pass-through entity, similar to a partnership, for federal income tax 

purposes. It is generally not subject to any federal income taxes at the 

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.) 

Volatile liabilities – the sum of large-denomination time deposits, foreign-office deposits, federal funds purchased, securities sold under 

agreements to repurchase, and other borrowings. 

Yield on earning assets – total interest, dividend and fee income earned 

on loans and investments as a percentage of average earning assets. 

FDIC QUARTERLY 21 2007, VOLUME 1, NO. 1 
Individual Development Accounts and Banks: 

A Solid “Match” 

The more than 8,600 FDIC-insured banks and thrifts in 

the United States offer a wide variety of financial products and services through more than 94,000 banking 

offices. During the past decade, the development of 

alternative delivery channels, such as the Internet, has 

enhanced accessibility to banking products and services. Yet even with this greater access, about 10 million 

American households do not use any aspect of the 

banking system.1 An even larger number, perhaps tens 

of millions more American households, use only a 

limited number of banking services. 

Households, regardless of income level, underuse 

banking services for a variety of reasons. However, a 

large body of research provides evidence that limited 

involvement in the mainstream financial sector is 

most common among low- and moderate-income 

households.2 Although their income may be relatively 

low, these individuals hold assets and regularly 

conduct financial transactions, frequently with 

nonbank financial companies. Estimates of nonbank 

financial company transaction volume vary, but are 

as high as $250 billion annually.3 Not all of these 

revenues can be tied directly to low- and moderateincome individuals. However, these estimates are 

large enough to suggest a reasonable business case 

for insured institutions trying to attract the banking 

business of low- and moderate-income consumers. 

For most people, opening a checking or savings account 

is the first step toward involvement in the financial 

mainstream, followed by the use of credit products, 

investments, and insurance. A relatively low-risk way 

for banks to introduce low- and moderate-income 

households to the banking system is through a particular type of savings account—the Individual Development Account (IDA). This article explains how IDAs 

1 Federal Reserve Board, 2004 Survey of Consumer Finances. 2 Low- and moderate-income households earn less than 80 percent of 

the median household income for their particular geographic area, 

according to U.S. Census Bureau data. 

3 Brian Grow and Keith Epstein, “The Poverty Business: Inside U.S. 

Companies’ Audacious Drive to Extract More Profits from the Nation’s 

Working Poor,” Business Week, May 21, 2007. This article cited data 

from investment bank Stephens, Inc. 

operate, discusses banks’ experience with IDAs, and 

provides resources for bankers who want to know more 

about these programs. 

History of IDAs 

Individual development accounts are matched savings 

accounts that enable low-income families to save 

money for a particular financial goal, such as buying a 

home, paying for post-secondary education, or starting 

or expanding a small business. The framework for IDAs 

is widely believed to have emerged in the early 1990s 

through “asset-based” policy research that advocates 

asset-building programs to alleviate poverty.4 

Asset-based policy contends that traditional poverty 

programs that focus on income transfers, such as 

Temporary Assistance for Needy Families (TANF) 

payments or food stamp benefits, are necessary, but 

meet only short-term consumption needs. Asset-based 

policy proponents note that accumulating assets, such 

as contributing to a savings account or buying a home, 

over a longer time horizon creates a financial cushion 

for emergencies, which in turn generates social, 

behavioral, and psychological benefits. Armed with 

assets, an individual’s options for emerging from 

poverty and entering the financial mainstream are 

greatly enhanced. 

In 1993, Iowa was the first state to enact a law establishing IDAs. Today, 33 states (as well as Puerto Rico 

and the District of Columbia) have either laws or policies that govern the operations of IDAs (see Table 1 

on next page). Of these states, 19 are currently operating programs that are supported by state funding. 

Approximately 540 community-based and -funded 

IDA programs operate across the United States including in the 17 states without IDA laws or policies.5 

4 Michael Sherraden, Assets and the Poor: A New American Welfare 

Policy (Armonk, NY: M.E. Sharpe, Inc., 1991). 5 CFED, “Individual Development Accounts: Providing Opportunities to 

Build Assets,” January 2007. 

FDIC QUARTERLY 22 2007, VOLUME 1, NO.1 
IDAs and Banks: A Solid “Match” 

Table 1 

33 States Plus the District of Columbia and 

Puerto Rico Have Laws or Policies 

Governing IDAs 

States with Operational Other States That Have 

State-Supported IDA programsa Established IDA Policyb 

Arkansas Arizona 

Connecticut California 

District of Columbia Colorado 

Indiana Florida 

Kansas Hawaii 

Louisiana Idaho 

Maine Illinois 

Michigan Iowa 

Minnesota Maryland 

Missouri Montana 

New Hampshire New Mexico 

New Jersey Oklahoma 

North Carolina Puerto Rico 

Oregon Tennessee 

Pennsylvania Texas 

South Carolina Utah 

Vermont 

Virginia 

Washington 

Source: State IDA Policy Summary Tables, Center for Social Development, February 28, 2007. 

Notes: 

a These states are supporting IDA programs developed from policy or administrative rulemaking. 

b These states have passed IDA policy but are not currently developing or supporting IDA programs. 

How Are Banks Involved in IDA programs? 

IDA programs are generally created by nonprofit organizations or divisions of state or local government. 

However, for-profit entities, including FDIC-insured 

banks and thrifts, have also created IDA programs. 

The organization creating the IDA program, called 

the program sponsor, establishes the parameters of 

program participation (within state law or policy 

where appropriate). The program sponsor applies for 

matching funds and deposits those funds in a reserve 

account at a financial institution. Because the sponsor 

typically administers the IDA paperwork, it is sometimes called the administrator. 

The financial institution establishes and services individual savings accounts for program participants. Some 

services, such as providing periodic account statements, 

are similar to the institution’s typical savings accounts. 

However, other services, such as waiving minimum 

account balances or heightened monitoring to prevent 

premature withdrawals, may be specialized. The 

program sponsor usually assumes responsibility for allocating matching funds to individual accounts. 

The relationship between the program sponsor and the 

financial institution is commonly governed by a written 

agreement. In practice, many IDA programs involve 

partnerships of multiple nonprofit or government organizations and financial institutions. Financial institutions may provide some or all of the matching funds 

to the sponsoring organization, and also may provide 

general operational support and funding, such as 

absorbing the costs of marketing or providing financial 

education to participants. 

According to data from CFED, a nonprofit organization 

that provides a clearinghouse of information on IDAs, 

244 FDIC-insured banks and thrifts and 53 credit 

unions participated in IDA programs in 2005 (the 

most recent data available).6 

How Do IDAs Operate? 

In general, IDAs operate similarly to other types of 

“matched” savings plans, such as 401(k) retirement 

accounts.7 With an IDA, the account holder deposits 

money in a savings account, and the funds are matched 

anywhere from dollar for dollar up to eight dollars to 

one dollar, depending on the rules of the particular 

program and state law. Two or three dollars to one 

dollar is the common match range. A “ceiling” of 

dollars and time frames typically is established for the 

match amount. 

Money for the match is provided through a variety of 

public and private sources (see Charts 1 and 2 on next 

page). The U.S. Treasury, under the Assets for Independence Act of 1998 (AFI), provides most of the 

matching funds. The AFI has provided an average of 

$25 million in annual appropriations to fund IDA 

matches. As shown in Chart 1, almost 60 percent of 

IDA programs that receive funding obtain matching 

funds through the AFI. 

State programs, faith-based organizations, philanthropic 

groups, and corporations also provide matching funds. 

Banks are important contributors as well; as shown in 

6 CFED, “2005 IDA Program Survey,” 2005. 

7 At this time, unlike 401(k) plan contributions, IDA program participants are not permitted to use pretax income to fund contributions. 

FDIC QUARTERLY 23 2007, VOLUME 1, NO.1 
Charts 1 and 2 

Public Sources of Operating and Matching Funds for IDA Programs 

Percentage of Programs Receiving Funding 

Operating Source 

Matching Source 

60 

50 

40 

30 

20 

10 

0 

TANF 

Local Discretionary Spending

State Tax Credits 

State Discretionary Spending 

Department of Labor 

HUD Sources 

HHS - Community Service Block Grants 

HHS - Office of Refugee Resettlement 

HHS - Assets for Independence 

Chart 1 

Private Sources of Operating and Matching Funds for IDA Programs 

Percentage of Programs Receiving Funding 

60 

50 

40 

30 

20 

10 

0 

Chart 2 

The Federal Government Provides the Majority of IDA Matched Funds, 

but Banks Are Also Important Contributors 

Operating Source 

Matching Source 

Earned Income

Individuals 

Faith-Based Organizations

United Way 

Businesses and

Corporations 

Federal Home Loan Banks 

Banks/Financial

Institutions

Foundations 

Source: CFED, “Individual Development Accounts: Providing Opportunities to Build Assets,” January 2007. 

Note: HHS refers to the U.S. Department of Health and Human Services and HUD refers to the U.S. Department of Housing and Urban Development. 

Chart 2, they provide matching funds to about 

25 percent of IDA programs that receive funding. 

Banks also provide about 30 percent of the general 

operational funding to these programs. 

IDA participation requirements, which are based on 

state laws and policies as well as rules and requirements 

of the sponsoring organization, commonly include some 

combination of the following: 

• Maximum income levels – These levels are generally 

expressed as a percentage of the federal poverty 

guidelines or the area median income figure.8 

• Net worth – Some programs limit the level of household assets (such as a car, equity in a home, or other 

savings) that a qualified applicant owns. For example, applicants cannot participate in some programs 

if they own assets in excess of $5,000. 

8 The U.S. Department of Health and Human Services is responsible 

for determining poverty guidelines, and the U.S. Department of Housing and Urban Development is responsible for determining and 

reporting annual area median income figures. 

• Earnings – Many programs require that all or a part 

of an applicant’s savings come from earned income, 

most commonly a paycheck. However, public assistance payments, such as unemployment checks, 

TANF funds, disability payments, and Social Security, also usually are considered earnings. 

• Credit history – Poor credit or heavy debt levels may 

disqualify applicants under some programs. 

• Limitations on withdrawal – Withdrawals typically 

can only be made to buy a home, pay for education, 

or start or expand a small business. Some states 

restrict the purpose of the accounts even further, 

while others permit withdrawals for home repairs or 

automobile purchases. A prohibition period, usually 

one to three years, is common for withdrawals of 

matched funds. This period, which usually coincides 

with the length of time during which the funds are 

matched, allows time for the savings to accumulate. 

• Financial education requirements – In most cases, 

participants are required to attend financial education classes, such as the FDIC’s Money Smart 

FDIC QUARTERLY 24 2007, VOLUME 1, NO.1 
IDAs and Banks: A Solid “Match” 

curriculum.9 Participants also may receive other 

types of financial counseling or training.10 

Potential Benefits to Banks of Participating in an IDA 

Banks can use IDAs to tap into new markets by establishing relationships with individuals who may have no 

banking relationships (unbanked) or only minimal relationships with mainstream financial companies (underbanked). Estimates of the size of this market vary, but 

research indicates that a substantial portion of the 

population does not fully use the banking system. 

For example, the results of the Federal Reserve’s 2004 

Survey of Consumer Finances showed that nearly 9 

percent of American households are unbanked; they do 

not have a checking or savings account. A study by the 

Center for Financial Services Innovation (CFSI) indicates that the unbanked rate is 30 percent for low- and 

moderate-income households.11 This study also shows 

that of the 70 percent of low- and moderate-income 

households that have bank accounts, almost two-thirds 

may be considered “underbanked,” as they continue to 

use nonbank financial services.12 

These customers are considered low- and moderateincome, but they do conduct a large volume of financial transactions. For instance, the nearly 1 million 

households surveyed by the CFSI during 2003 and 

2004 bought 1.2 million money orders and cashed 

1.9 million checks per month.13 Extrapolating this 

activity across the country suggests that low- and 

moderate-income households conduct a significant 

level of transactions outside mainstream banking. 

9 Findings from a recent survey of consumers who took the FDIC’s 

Money Smart program showed a strong correlation between financial 

education and opening a bank account. Within 6 to 12 months of 

taking Money Smart, 43 percent of those without a checking account 

and 37 percent of those without a savings account opened accounts. 

See FDIC, “A Longitudinal Evaluation of the Intermediate-term Impact 

of the Money Smart Financial Education Curriculum upon Consumers’ 

Behavior and Confidence,” April 2007. 

10 The description of IDA participation requirements is adapted from 

the CFED Web site “Frequently Asked Questions” at 

http://www.cfed.org. 

11 Ellen Seidman, Moez Hababou, and Jennifer Kramer, “Getting to 

Know Underbanked Consumers: A Financial Services Analysis,” The 

Center for Financial Services Innovation, September 2005. This survey 

represented almost 1 million households in 63 low- and moderateincome tracts in three cities: Washington, D.C., Chicago, and Los 

Angeles. 

12 Ibid. 

13 Ibid. 

Banks can offer IDAs as a way of introducing customers to the mainstream financial system with a very 

simple, low-risk product—a savings account. The 

initial product may be small and perhaps not yet 

profitable. However, over time, at least some of these 

customers likely will continue the relationship and 

expand into other products, becoming profitable in 

the long run. As the goal of the IDA is often home 

purchase, further education, or small business needs, 

account holders may also choose credit products from 

the IDA-administering banks. 

In addition to establishing an initial relationship 

with new customers, banks can benefit as administrators of the master reserve account and the individual 

accounts. Banks can use the funds for general purposes 

while the customer is restricted from withdrawing the 

matched money, usually for a year or more. Establishing IDAs with direct deposit might be particularly 

beneficial, as both the saver and the financial institution are virtually assured that regular contributions 

will be made. Participants who use direct deposit are 

much more likely to be savers and remain active in 

the IDA program.14 

Intangible benefits also accrue to banks that provide 

IDAs. These programs generate goodwill throughout 

communities as well as with existing customers by 

working with local organizations to assist the needy 

and disadvantaged. Local nonprofit organizations that 

sponsor IDAs routinely recognize the efforts of their 

financial institution partners, and these initiatives 

often receive positive local press coverage. 

More tangibly, banks could receive positive consideration from financial institution regulators as their investment, lending, and service performance is evaluated 

under the Community Reinvestment Act (CRA). 

Although each bank, situation, and IDA program is 

different and would be evaluated on its own merits, 

the following are examples of how bank participation 

in IDA programs could receive positive CRA 

consideration: 

• Investment performance – A bank provides direct 

funding to IDA match programs or directly expends 

operational funds in support of an IDA program. 

14 Mark Schreiner, Margaret Clancy, and Michael Sherraden, “Saving 

Performance in the American Dream Demonstration, a National 

Demonstration of Individual Development Accounts,” Center for 

Social Development, October 2002. 

FDIC QUARTERLY 25 2007, VOLUME 1, NO.1 
• Lending performance – A bank lends to an IDA 

program sponsor or to low- and moderate-income 

program participants. 

• Service performance – A bank provides low-cost 

deposit accounts to low- and moderate-income 

program participants.15 

Do IDAs Really Work? 

A review of the effectiveness of IDAs was conducted 

by the American Dream Demonstration (ADD) from 

1997 to 2001; this survey encompassed 14 IDA 

programs across the country.16 The ADD survey was 

organized by CFED, conducted by the Center for 

Social Development, and funded by various philanthropic foundations. The following statistics demonstrate that IDAs can help low-income Americans 

enter the financial mainstream and build assets: 

• One in five IDA participants was unbanked when 

joining the program. 

• About 50 percent of participants were “savers”; that 

is, they not only opened accounts but made periodic 

deposits of at least $100. 

• The average time of participation in IDAs was 24.5 

months. 

• The average amount that participants placed in the 

accounts was $528. 

• With matched funds, the average participant had 

accumulated a total of $2,755. 

• Approximately one-third of the participants had 

made a matched withdrawal with the uses shown 

in Chart 3.17 

The ADD survey did not capture data about whether 

participants who eventually migrated to credit products used their IDA bank for credit. However, it can 

15 Depending on the context, offering IDAs may warrant consideration 

as either a retail banking service or a community development service. See Interagency Questions and Answers (Q&As) for CRA, 66 Fed. 

Reg. 36619, 36631, §.22(a)-1 (July 12, 2001), 

http://www.ffiec.gov/cra/pdf/qa01.pdf. 16 Schreiner et al. 

17 Ibid. 

Chart 3 

IDA Participants Used Their Assets Most Frequently 

to Buy Homes, but Also Made Withdrawals for 

Home Repair, to Pay for Education, and to 

Fund Small Businesses 

Percent of Participants Reporting 

Actual Uses of IDA Funds Retirement, 

7 percent 

Job Training, 

2 percent 

Home Repair, 

18 percent 

Post-secondary 

Education, 

Home Purchase, 

21 percent 

Microenterprise, 

23 percent 

28 percent 

Source: Mark Schreiner, Margaret Clancy, and Michael Sherraden, “Saving 

Performance in the American Dream Demonstration Final Report,” October 2002. 

Note: Data reflect American Dream Demonstration participants who had made a 

matched withdrawal as of December 31, 2001. 

reasonably be assumed that some did. The psychological effects of being able to save are perhaps harder 

to quantify than deepening involvement with mainstream financial companies, but are no less important. 

As Chart 4 (on next page) shows, the vast majority 

of IDA participants feel more confident about the 

future and more economically secure. This may indicate that they are on a path to financial independence and, accordingly, to establishing a long-term 

relationship with a bank. 

In addition to the national ADD study, the FDIC 

tracks the success of local IDA programs. FDIC 

Community Affairs staff routinely serves as communication facilitators between banks and nonprofit 

IDA sponsors and advises about the financial education component of IDA programs. More specifically, 

the FDIC provides access to instructor education on 

the FDIC’s Money Smart financial education curriculum. Money Smart was developed by the FDIC in 

2001 to help low- and moderate-income adults 

enhance their money management skills, understand 

basic mainstream financial services, avoid pitfalls, 

and build financial confidence to use banking services effectively.18 

18 An electronic version of Money Smart is available at 

http://www.fdic.gov. 

FDIC QUARTERLY 26 2007, VOLUME 1, NO.1 
IDAs and Banks: A Solid “Match” 

Chart 4 

IDA Participants Perceive Positive Economic Effects 

Source: Amanda Moore McBride, Margaret Lombe, and Sondra G. Beverly, “The Effects 

of Individual Development Account Programs: Perceptions of Participants,” Center for 

Social Development Working Paper 03-06, 2003. 

* Data based on 298 completed surveys of IDA participants at six American Dream 

Demonstration sites. 

Percent of Survey Respondents* 

“Because I have an IDA, I am/have...” 

Agree 

Disagree 

0 10 20 30 40 50 60 70 80 90 100 

More confident about 

the future 

More economically secure 

More likely to make education

plans for self 

More likely to make education

plans for children 

More likely to make plans

for retirement 

More likely to buy or

renovate a home 

More likely to start or

expand a business 

More likely to work or

stay employed 

The textbox on page 32 describes the outcomes of an 

IDA program facilitated by the FDIC in the Kansas 

City metro area. This program is sponsored by a local 

nonprofit, The Family Conservancy in Kansas City, and 

involves three banks, UMB Bank, N.A., U.S. Bank, 

N.A., and Emporia State Bank.19 The program has been 

successful in creating savers; as of year-end 2006, more 

than 371 individuals have successfully exited the 

program with their matched funds. Additionally, this 

program provides tangible evidence that IDA customers 

do migrate to other bank products; about half the 170 

participants who purchased a home received a mortgage 

from their IDA bank. 

Are IDAs Profitable for Banks? 

Very little empirical data exist about the profitability 

of IDAs for banks. A study conducted in 2003 by the 

Center for Community Capitalism concluded that IDA 

programs have not been subjected to robust cost-benefit analysis at banks.20 Further, it is likely that these 

institutions’ community development goals probably 

result in relaxed profitability targets in the short 

term.21 The same study noted that short-term costs, 

19 The FDIC does not expressly endorse this or any other IDA program 

or bank. This program is used only as an example. 

20 Center for Community Capitalism, “Financial Institutions and Individual Development Accounts: Results of a National Survey,” The Frank 

Hawkins Keenan Institute of Private Enterprise, The University of 

North Carolina at Chapel Hill, October 2003. 

21 Ibid. 

particularly for labor, can be high. As described below, 

federal legislation has been introduced that would 

provide tax credits to insured institutions to offset 

some of these costs, potentially accelerating the timeframe for profitability. However, taking a longer-term 

view—potentially developing long-term customers 

and “graduating” IDA participants into credit and 

other products—may be more appropriate than the 

traditional break-even analysis.22 

What Lies Ahead for IDAs? 

While IDAs have helped low- and moderate-income 

Americans transition to the financial mainstream and 

a potentially more secure future, a number of barriers 

appear to constrain IDA use on a large scale. For 

instance, as with any program that relies on donations, there is a persistent shortage of matched and 

operational funds. However, other, perhaps less obvious barriers also exist. These barriers are described 

below, along with potential solutions. 

Lack of Knowledge about IDAs – A National IDA 

Framework 

Individuals who may qualify for an IDA and banks 

that may want to participate in IDA programs may 

find it difficult to obtain critical information because 

IDAs are dispersed among many organizations. Federal 

IDA laws have been debated that would standardize 

what is currently a patchwork of several hundred 

programs operated under various state laws and 

community program parameters. Most recently, the 

Saving for Working Families Act was reintroduced in 

March 2007. This act, first introduced in 2003, would 

establish a national framework for IDAs and would 

provide $1.2 billion in tax credits to allow banks to 

offset part of the cost of opening and maintaining 

the accounts. 

No Ability to Save – Linking Taxes and Savings 

Potential IDA participants may be discouraged from 

participating because they do not believe they will be 

able or are not disciplined enough to contribute funds 

to the account. Some policymakers believe this obstacle could be overcome, at least in part, by linking tax 

refunds and savings. Generally, the same individuals 

who qualify for IDAs qualify for the Earned Income 

Tax Credit and tend to receive sizable tax refunds. 

Every year, the Internal Revenue Service processes 

22 Ibid. 

FDIC QUARTERLY 27 2007, VOLUME 1, NO.1 
refunds averaging $2,100 for more than 100 million 

taxpayers, many of whom are poor and perhaps 

underbanked.23 

In the past, banks and community and charitable 

organizations have been successful in recruiting IDA 

participants through the Voluntary Income Tax Assistance (VITA) program. Under the VITA program, 

volunteers prepare tax returns for low- and moderateincome Americans at nonprofit locations. Program 

sponsors and banks often use this opportunity to 

market IDAs to consumers, suggesting that they place 

all or a portion of their refunds in IDAs. In 2007, in 

compliance with the Pension Protection Act of 2006, 

the Internal Revenue Service began giving taxpayers 

the option of electronically splitting their tax refund 

among two or three financial institution accounts. 

Consumers now can choose to divide their refunds 

between their IDA and a checking account, for example, which would give them immediate access to some 

of the funds while allowing them to save the remainder for longer-term goals. 

The ability to split refunds will streamline the process 

of opening IDAs and may help expand the use of this 

program. A small-scale demonstration of refund splitting was conducted in the 2004 tax season by the 

Doorways to Dreams (D2D) Fund in Boston, Massachusetts. D2D is a nonprofit research firm that explores 

ways to use technology to address poverty-related issues. 

D2D used its methodology to split the refunds, with the 

following results: 

• Of the 516 tax filers given the opportunity to open 

an account to split their refunds, 27 percent 

accepted the offer, and 15 percent were able to 

participate after meeting account-opening criteria. 

• Participants chose to save 47 percent of their refunds, 

or an average of $606. This represented at least a 90 

percent increase over their existing savings. 

• Four months later, two-thirds of participants continued to save a portion of their refunds.24 

23 Anne Stuhldreher (New America Foundation) and Jennifer Tescher 

(Center for Financial Services Innovation), “Breaking the Savings 

Barrier: How the Federal Government Can Build an Inclusive Financial System,” New America Foundation, Asset Building Program, 

February 2005. 

24 Amy Brown, “Expanding Financial Services to Unbanked 

Consumers: How Tax Preparation Partnerships Can Help Bridge the 

Gap,” The Center for Financial Services Innovation, September 2005. 

Too Much Debt to Save – Linking Small-Dollar 

Credit with Savings 

Some individuals may feel that debt service payments 

on high-cost credit are too large, leaving them no 

funds to set aside in savings. On December 4, 2006, 

the FDIC released for comment the “Affordable Small 

Loan Guidelines,” which encourage banks to offer 

small-dollar credit that is affordable, yet safe and 

sound, as an alternative to short-term, high-cost 

credit, such as payday loans.25 The final Guidelines 

are expected to be issued very soon. 

As part of small-dollar loan programs, banks are 

encouraged to include a savings component, whereby 

borrowers can either set aside a percentage of the 

amount borrowed or of the periodic payment in a 

savings account. Over the long term, this approach 

can help banks develop a relationship with borrowers 

and can help borrowers build assets to lessen their 

reliance on short-term loans. Depending on the 

rules of a particular IDA program, banks may be able 

to offer customers the option to use an IDA account 

for the savings component of small-dollar loan 

programs as a means of leveraging the use of the 

match feature. 

IDA Resources for Banks 

Banks often become involved in IDA programs 

through contacts and relationships with charitable 

and other nonprofit organizations. The FDIC’s 

Community Affairs staff has developed relationships 

with local organizations and can facilitate communications between IDA sponsors and banks. The FDIC 

has also established the Alliance for Economic Inclusion (AEI), a new national initiative of broad-based 

coalitions of financial institutions, community-based 

organizations, and other partners in nine markets 

across the country to bring unbanked and underbanked individuals into the financial mainstream.26 

For more information on these initiatives, contact 

the FDIC’s Community Affairs Office in your state 

(see Table 2 on next page). 

25 The “Affordable Small Loan Guidelines” are available at 

http://www.fdic.gov. 

26 The nine markets are Chicago, Illinois; Austin/South Texas; 

Louisiana and Mississippi Gulf Coast areas; the semi-rural area of 

Alabama; Greater Boston, Massachusetts; Wilmington, Delaware; Los 

Angeles, California; Kansas City, Missouri; and Baltimore, Maryland. 

FDIC QUARTERLY 28 2007, VOLUME 1, NO.1 
IDAs and Banks: A Solid “Match” 

Table 2 

FDIC Community Affairs Officers 

Community Affairs Officer Division of Supervision Area of Responsibility and Consumer Protection 

Thomas E. Stokes Atlanta Regional Office Alabama 

10 Tenth Street, N.E. Florida 

Suite 800 Georgia 

Atlanta, GA 30309 North Carolina 

Phone: (678) 916-2249 (direct) South Carolina 

Phone: (800) 765-3342 (toll-free) Virginia 

West Virginia 

Timothy W. DeLessio Boston Area Office Connecticut 

15 Braintree Hill Office Park Maine 

Braintree, MA 02184 Massachusetts 

Phone: (781) 794-5632 (direct) New Hampshire 

Phone: (866) 728-9953 (toll-free) Rhode Island 

Vermont 

Michael Frias Chicago Regional Office Illinois 

500 West Monroe Street Indiana 

Suite 3300 Kentucky 

Chicago, IL 60661 Michigan 

Phone: (312) 382-6903 (direct) Ohio 

Phone: (800) 944-5343 (toll-free) Wisconsin 

Eloy A. Villafranca Dallas Regional Office Colorado 

1910 Pacific Avenue New Mexico 

20th Floor Oklahoma 

Dallas, TX 75201 Texas 

Phone: (972) 761-8010 (direct) 

Phone: (800) 568-9161 (toll-free) 

Elizabeth Kelderhouse Kansas City Regional Office Iowa 

2345 Grand Boulevard Kansas 

Suite 1200 Minnesota 

Kansas City, MO 64108 Missouri 

Phone: (816) 234-8151 (direct) Nebraska 

Phone: (800) 209-7459 (toll-free) North Dakota 

South Dakota 

Clinton Vaughn Memphis Area Office Arkansas 

5100 Poplar Avenue Louisiana 

Suite 1900 Mississippi 

Memphis, TN 38137 Tennessee 

Phone: (901) 818-5706 (direct) 

Phone: (800) 210-6354 (toll-free) 

Valerie J. Williams New York Regional Office Delaware 

20 Exchange Place District of Columbia 

4th Floor Maryland 

New York, NY 10005 New Jersey 

Phone: (917) 320-2621 (direct) New York 

Phone: (800) 334-9593 (toll-free) Pennsylvania 

Puerto Rico 

Virgin Islands 

Linda D. Ortega San Francisco Regional Office Alaska 

25 Jesse Street at Ecker Square Arizona 

Suite 902 California 

San Francisco, CA 94105 Guam 

Phone: (415) 808-8115 (direct) Hawaii 

Phone: (800) 756-3558 (toll-free) Idaho 

Montana 

Nevada 

Oregon 

Utah 

Washington 

Wyoming 

FDIC QUARTERLY 29 2007, VOLUME 1, NO.1 
The following organizations are additional sources of 

information for banks that may want to participate in 

an IDA program.27 

• CFED is a nonprofit organization established in 

1979 as the Corporation for Enterprise Development (http://www.cfed.org). CFED strives to ensure 

that every person can participate in, contribute to, 

and benefit from the economy by bringing together 

community practice, public policy, and private 

markets. The CFED Web site includes IDA program 

statistics, model legal and operational documents, 

the results of scholarly research, and minutes of 

meetings and conferences in the IDA arena. 

• The Center for Social Development (CSD) is affiliated with the George Warren Brown School of 

Social Work at the Washington University in 

St. Louis, Missouri (http://gwbweb.wustl.edu/csd). 

CSD is a leading academic center of theory and 

research on asset-building strategies for low-income, 

low-asset populations. The CSD Web site includes 

the complete ADD report. 

• The Doorways to Dreams (D2D) Fund works to 

expand access to financial services, especially assetbuilding opportunities, for low-income families by 

creating, testing, and implementing innovative financial products and services (http://www.d2dfund.org). 

An online IDA software package, along with extensive information and product templates for refund 

splitting, are available on the D2D Web site. 

IDAs: Indeed a “Good” Match 

A sound business case exists for banks to develop 

strategies to attract low- and moderate-income 

customers, as these individuals are generating significant revenues for nonbank financial companies. IDAs 

are a straightforward, low-risk way to appeal to such 

customers. Although IDAs are unlikely to be profitable 

in the short term, expanding relationships with these 

customers may generate profitability over the longer 

term. In addition, other benefits accrue to banks participating in IDA programs, such as positive consideration 

during CRA examinations and goodwill in the community. If some of the barriers can be overcome, then IDA 

programs may become more widespread, providing 

additional opportunities for low-income individuals to 

join the financial mainstream and for banks to reach 

out to new customers. 

Author: Rae-Ann Miller, Special Advisor to the Director, 

Division of Insurance and Research, 

rmiller@fdic.gov 

Contributor: Susan Burhouse, Financial Economist, 

Division of Insurance and Research, 

sburhouse@fdic.gov 

The author wishes to thank Elizabeth Russell List 

(Community Affairs Officer, FDIC), Kim Lowry 

(Writer/Editor, FDIC), Vanessa Vaughn 

(Community Relations Specialist, UMB Bank, 

N.A.), Turner Pettway (Community Development Manager, U.S. Bank, N.A.), Kim Pate 

(Director, Field Development, CFED), Emily 

Appel (Program Manager, Field Development, 

CFED), and Julie Riddle (Manager, Asset Building and Family Support Programs, The Family 

Conservancy). The author wishes to extend 

special thanks to Susan Burhouse, without whose 

significant assistance this article would not have 

been completed. 

27 The FDIC does not endorse any specific Web site or program 

related to IDAs. 

FDIC QUARTERLY 30 2007, VOLUME 1, NO.1 
IDAs and Banks: A Solid “Match” 

Local Success Story – The Family Conservancy IDA Program 

Many successful IDA programs operate across the country. The FDIC has participated in a number of programs, 

often facilitating communications between sponsoring 

organizations and financial institutions and providing 

financial literacy and other technical assistance. One 

example is The Family Conservancy (TFC) in Kansas 

City, Missouri. TFC is the oldest and largest nonprofit 

social service agency in the Greater Kansas City area. 

More than 120,000 people are served annually by TFC 

programs that focus on asset building, counseling, early 

childhood education, and family support. TFC is the 

largest administrator of IDAs in the Kansas City metro 

area, offering more than 900 accounts with $1 million in 

committed funding. 

TFC recruits IDA participants from community organizations such as El Centro, an organization offering financial counseling and other services to Latino immigrants; 

Rose Brooks Center, a shelter for homeless women; and 

the Kansas Department of Social and Rehabilitation 

Services. The maximum income for participation is 200 

percent of the federal poverty level, or about $40,000 for 

a family of four. 

Participants may use account proceeds only for home 

purchase, entrepreneurship, or post-secondary education. 

Participants’ deposits are matched two for one, and there 

is a one-year prohibition on withdrawing matched funds. 

TFC applies for grants and receives funding for the match 

from a variety of sources, including the U.S. Department 

of Health and Human Services, state agencies, philanthropic foundations such as the Ewing Marion Kauffman 

Foundation, and public corporations, including banks. 

The FDIC’s Money Smart curriculum is used for TFC’s 

financial literacy training requirement. The Money Smart 

curriculum consists of ten modules and is available in 

English, Spanish, Chinese, Korean, Vietnamese, and 

Russian. TFC IDA participants must complete all ten 

modules to keep their matched funds. Money Smart 

classes are taught at TFC headquarters, as well as at the 

Rose Brooks Center and El Centro. 

U.S. Bank, N.A., and UMB Bank, N.A., administer the 

reserve and participant accounts. These banks have 

provided some direct funding to the IDA program as well 

as operational support. These banks also relaxed policies 

governing the number of years during which potential 

IDA account holders must show a clean check-writing 

record. 

The FDIC also worked with TFC to spin off ten IDA 

slots to the rural community of Emporia, Kansas, in an 

attempt to bring financial education and asset-building 

assistance to immigrants and other local individuals, 

particularly in the meatpacking industry. Emporia 

Community Housing Organization (ECHO), a community-based organization that provides low-income housing to Emporia residents, sponsors the accounts, and 

Emporia State Bank hosts the accounts. 

The TFC IDA program has produced very favorable 

results for individual participants and the banks. As of 

December 31, 2006, 

• 1,183 individuals had opened IDAs; 

• $2,722,250 in total potential participant savings, 

including matched funds, were deposited; 

• 371 individuals had successfully exited the IDA 

program; 

• 170 IDA participants purchased a home, and about 50 

percent of these participants received mortgages from 

partner banks; 

• 175 IDA participants used funds for post-secondary 

education; 

• 73 IDA participants started or expanded a small business; 

• 38 IDA participants used funds for home repairs; 

• 27 IDA participants transferred savings to an individual retirement account; 

• 7,400 hours of FDIC Money Smart financial education 

were completed; and 

• 895 individuals graduated from the Money Smart 

curriculum. 

FDIC QUARTERLY 31 2007, VOLUME 1, NO.1