Quarterly Banking Profile Third Quarter 2007 

INSURED INSTITUTION PERFORMANCE 

■ Credit Quality Problems Drag Down Earnings 

■ Industry Net Income Falls to Four-Year Low 

■ Asset Growth Sets New Quarterly Record 

■ Net Interest Margins Register Slight Improvement 

Almost Half of All Institutions Report Lower Profits 

Rising levels of troubled loans in all major loan categories, 

but most notably in residential mortgage portfolios, led to a 

steep jump in expenses for bad loans in the third quarter. 

These higher costs, combined with sharply lower trading 

revenue, caused industry earnings to fall 24.7 percent from 

a year ago to $28.7 billion — the lowest level for industry 

earnings since the fourth quarter of 2002. This is the first 

time since 2003 that quarterly earnings have been below 

$30 billion. The industry’s return on assets (ROA) for the 

quarter was 0.92 percent, the lowest ROA since the fourth 

quarter of 1992. Slightly fewer than half of all insured 

institutions (48.5 percent) had ROAs of 1 percent or higher. A year ago, 54.4 percent of institutions attained this 

benchmark. The year-over-year decline in industry net 

income was fairly widespread; almost half of all institutions 

(49 percent) reported lower quarterly earnings compared to 

the third quarter of 2006. However, most of the decline 

was attributable to results at a relatively few large institutions. Ten institutions accounted for more than half of the 

decline in industry earnings. Net income in foreign offices 

fell by $4.3 billion, from a positive $2.0 billion in the third 

Chart 1 

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

quarter. 

Loss Provisions Surge to 20-Year High 

Loan-loss provisions totaled $16.6 billion, more than double the $7.5 billion insured institutions set aside for credit 

losses in the third quarter of 2006 and the largest quarterly 

loss provision for the industry since the second quarter of 

1987. Loss provisions absorbed 11 percent of net operating 

revenue (net interest income plus total noninterest 

income), the highest level since the fourth quarter of 2002. 

Noninterest income was $3.2 billion (5.1 percent) lower 

than in the third quarter of 2006; this is only the second 

time in the last 12 quarters that noninterest income has 

declined on a year-over-year basis. Revenue from trading 

was $2.8 billion (60.3 percent) lower than a year earlier. 

Sales of loans yielded a net loss of $139 million, compared 

to $2.3 billion in gains a year ago. This is the first time the 

industry has reported a net loss on loan sales since institutions first began reporting these data seven years ago. 

Gains on sales of securities and other assets declined by 

Chart 2 

-2.0 

2.0 

6.0 

10.0 

14.0 

18.0 

22.0 

26.0 

30.0 

34.0 

38.0 

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

$ Billions 

Securities and Other Gains/Losses, Net 

Net Operating Income 

2003 2004 2005 2006 2007 

29.5 30.2 30.4 31.1 31.8 31.2 32.5 31.1 

34.0 33.2 34.7 32.7 

36.9 38.0 38.1 

35.4 36.0 36.7 

28.7 

Industry Earnings Fall Below $30 Billion for the 

First Time Since 2003 

5.6 5.3 

-0.7 

9.2 

-3.2 

-8.0 

-4.0 

0.0 

4.0 

8.0 

12.0 

Increase in 

Net Interest 

Income 

Decrease in 

Noninterest 

Income 

Increase in 

Loan Loss 

Provision 

Decrease in 

Securities & 

Other Gains/ 

Losses 

Increase in 

Noninterest 

Expense 

Positive

Factor

Negative

Factors

3rd Quarter 2006 to 3rd Quarter 2007 

($ Billions) 

Net Interest Income Growth Was Among Few 

Positives for Industry Earnings 

FDIC QUARTERLY 1 2007, VOLUME 1, NO.3 
 

0

 

$698 million (80.8 percent) from a year earlier, to $166 million, the lowest level in seven years. Extraordinary items, 

which added $101 million to earnings a year ago, produced a 

net loss of $1.1 billion in the quarter. Noninterest expenses 

were $5.3 billion (6.5 percent) higher than in the third quarter of 2006. The magnitude of these downward pressures 

dwarfed improvements in net interest income, trust income 

and service charges on deposit accounts (up $5.6 billion, $1.3 

billion, and $721 million, respectively). 

Net Interest Income Registers Strong Growth 

The 6.5-percent increase in net interest income was the best 

year-over-year growth rate in five years. Interest-earning 

assets were up 7.5 percent from a year ago, and net interest 

margins (NIMs) were modestly higher than in the second 

quarter, thanks in part to a slightly steeper yield curve. The 

average NIM in the third quarter was 3.36 percent, up from 

3.34 percent in the second quarter, but lower than the 3.38 

percent average of a year ago. More than half of all institutions reported consecutive-quarter improvements in NIMs, 

but only 35 percent had year-over-year margin improvement. 

Overall, margins remain near 17-year lows. 

Loan Losses Are Higher in Most Loan Categories 

Net charge-offs totaled $10.7 billion, the largest quarterly 

amount since the fourth quarter of 2002. Loan losses in the 

third quarter were $3.6 billion (49.9 percent) higher than a 

Chart 3 

2.5 

3.0 

3.5 

4.0 

4.5 

5.0 

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

2003 2004 2005 2006 2007 

Assets > $100 Million 

Assets < $100 Million 

4.13 

3.35 

Net Interest Margin (%) 

Quarterly Net Interest Margins Improve 

Slightly 

year earlier, rising year-over-year for the third quarter in a 

row. Losses were up in most of the major loan categories. 

The largest increase occurred in loans to commercial and 

industrial (C&I) borrowers, where charge-offs were $796 million (91.4 percent) higher than a year earlier. Charge-offs of 

consumer loans other than credit cards had the second-largest 

increase, rising by $702 million (46.1 percent). Net chargeoffs of residential mortgage loans were up by $676 million 

(164.8 percent). Loss rates were significantly higher at larger 

institutions, where deterioration was most pronounced in residential mortgage loans. The quarterly loss rate on residential 

mortgage loans increased to 0.21 percent in the third quarter, 

from 0.08 percent a year earlier, at institutions with assets 

greater than $1 billion. The net charge-off rate on residential 

mortgages at smaller institutions increased from 0.05 percent 

to 0.09 percent. The net charge-off rate on all loans and 

leases rose from 0.44 percent to 0.62 percent at larger institutions, while at smaller institutions, the quarterly charge-off 

rate rose from 0.15 percent to 0.24 percent. 

Residential Real Estate Accounts for More than Half 

of the Increase in Noncurrent Loans 

Noncurrent loans and leases registered their largest quarterly 

increase in 20 years during the third quarter, rising by $16.0 

billion (23.8 percent). More than half of the increase consisted of residential real estate loans. Noncurrent residential 

mortgage loans increased by $7.5 billion (27.2 percent), 

while noncurrent home equity lines of credit rose by $783 

million (27.4 percent). Large increases in noncurrent loans 

Chart 4 

Loss Provisions Rose to a 20-Year High 

$ Billions 

17 

Loss Provisions Net Charge-offs 

8 

9 

7 

8 

7 7 

8 

9 

6 

7 7 7 

9 

8 

9 

10 

6 6

7 

6 

8 

10 

7 

8 

9 

11 

8 

9 

11 

0 

3/04 9/04 3/05 9/05 3/06 9/06 3/07 9/07 

FDIC QUARTERLY 2 2007, VOLUME 1, NO. 3 
 

Quarterly Banking Profile 

also occurred in real estate construction and development 

loans (up $3.6 billion, or 45.5 percent), real estate loans 

secured by nonfarm nonresidential properties (up $918 million, or 15.4 percent), and C&I loans (up $833 milllion, or 

10.4 percent). At the end of September, the total amount of 

loans and leases that were noncurrent stood at $83.0 billion, 

the highest level since the third quarter of 1992. The percentage of loans and leases that were noncurrent, which 

reached a 22-year low of 0.70 percent at midyear 2006, has 

risen in each of the five succeeding quarters. The noncurrent 

rate was 1.08 percent at the end of September, the highest 

level since the fourth quarter of 2003. 

Strong Reserve Growth Falls Short of the Increase in 

Noncurrent Loans 

The industry’s reserves for loan and lease losses increased by 

$5.7 billion (7.0 percent) during the quarter, as insured institutions added $5.9 billion more to reserves in loss provisions 

than was removed by charge-offs. The growth in reserves was 

the largest quarterly increase in 18 years and caused the 

industry’s ratio of reserves to total loans and leases to increase 

for the third quarter in a row. However, the increase in 

reserves failed to keep pace with the sharp rise in noncurrent 

loans. As a result, the industry’s “coverage ratio” declined 

from $1.21 in reserves for every $1.00 of noncurrent loans to 

$1.05 during the quarter — the lowest level for the coverage 

ratio since the third quarter of 1993. 

Chart 5 

Regulatory Capital Ratios Decline 

Equity capital grew by $48.1 billion (3.8 percent), the largest 

quarterly increase since the third quarter of 2004, as the 

industry’s equity-to-assets ratio rose from 10.43 percent to 

10.45 percent. A sizable share of the increase in equity capital came from merger-related goodwill, which grew by $22.2 

billion (6.8 percent). Unrealized losses on securities held for 

sale, which are deducted from equity capital, declined by $8.1 

billion (39.2 percent) during the quarter, providing an additional boost to capital. The industry’s tier 1 regulatory capital, which excludes goodwill and unrealized gains or losses on 

securities, increased by only $17.6 billion (1.8 percent), and 

the average core capital (leverage) ratio declined from 8.18 

percent to 8.14 percent during the quarter. The industry’s 

ratio of tier 1 capital to risk-weighted assets fell from 10.41 

percent to 10.24 percent, and the total risk-weighted capital 

ratio declined from 12.86 percent to 12.75 percent, both sixyear lows. At the end of the quarter, more than 99 percent of 

insured institutions met or exceeded the highest regulatory 

capital requirements. 

C&I Loan Growth Sets Another New Record 

Total assets increased by a record $446.3 billion (3.6 percent), eclipsing the previous quarterly high of $331.6 billion 

set in the first quarter of 2006. Loans and leases accounted 

for more than half of the increase, rising by $231.8 billion 

(3.1 percent). After increasing by a record $51.2 billion in 

Chart 6 

10 

25 

40 

55 

70 

85 

100 

3/04 9/04 3/05 9/05 3/06 9/06 3/07 9/07 

$ Billions 

20 

40 

60 

80 

100 

120 

140 

160 

180 

200 

Noncurrent Loans ($) 

Loan-Loss Reserves ($) 

Coverage Ratio (%) 

*Loan-loss reserves to noncurrent loans. 

Coverage Ratio* (%) 

Growth in Noncurrent Loans Outpaces 

Reserve Growth 

-3.00 

0.00 

3.00 

6.00 

9.00 

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

$ Billions 

Quarterly Net Charge-Offs 

Quarterly Change in Noncurrent Loans 

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

Troubled Mortgage Loans Surged in the 

Third Quarter 

FDIC QUARTERLY 3 2007, VOLUME 1, NO.3 
Author: 

Author: 

  

the second quarter, C&I loan growth set a new record of 

$89.5 billion (6.9 percent) in the third quarter. Three large 

institutions accounted for more than half of the increase in 

C&I loans. Residential mortgage loans increased by $50.2 

billion (2.3 percent), the largest quarterly increase since the 

second quarter of 2006. Real estate construction and development loans increased by $16.0 billion (2.7 percent), the 

smallest quarterly increase since the second quarter of 2004. 

Despite the slowdown in construction loan growth, the number of insured institutions with concentrations of construction loans continued to increase. At the end of September, 

more than one in four institutions (27.4 percent) reported 

construction loan portfolios that exceeded their total capital. 

In addition to the growth in loans, assets in trading accounts 

increased by $78.6 billion (10.7 percent), and intangible 

assets rose by $25.2 billion (5.8 percent) during the quarter. 

Goodwill accounted for most of the growth in intangible 

assets. 

Nondeposit Borrowings Fund Bulk of Asset Growth 

Insured institutions increased their reliance on wholesale 

funding sources during the quarter, as domestic deposit 

growth did not keep pace with growth in assets. Deposits 

increased by $146.0 billion (1.8 percent), as domestic office 

deposits grew by $49.2 billion (0.7 percent), and deposits in 

foreign offices rose by $96.8 billion (7.2 percent). This 

growth in deposits represented less than a third of the growth 

in total assets during the quarter. The increase in domestic 

Chart 7 

deposits came from time deposits, which rose by $82.2 billion 

(3.3 percent), and from other interest-bearing deposits, which 

increased by $20.1 billion (0.7 percent). Noninterest-bearing 

deposits in domestic offices fell by $53.1 billion (4.5 percent). 

Federal Home Loan Bank (FHLB) advances filled a substantial share of the funding gap, rising by $161.8 billion (26.6 

percent) during the quarter. More than half of all insured 

institutions (59.2 percent) had FHLB advances at the end of 

September. Liabilities in trading accounts increased by $45.0 

billion (15.3 percent). 

“Problem List” Assets Decline 

The number of insured commercial banks and savings institutions reporting quarterly financial results declined from 8,615 

to 8,560 during the quarter. Forty-two new charters were 

added, while mergers absorbed 93 charters. One insured savings institution failed during the quarter. Two mutuallyowned savings institutions, with combined assets of $304 

million, converted to stock ownership. The number of institutions on the FDIC’s “Problem List” increased for the fourth 

quarter in a row, from 61 to 65, but the assets of “problem” 

institutions declined during the quarter, from $23.8 billion to 

$18.5 billion. 

Author: Ross Waldrop, Sr. Banking Analyst 

Division of Insurance and Research, FDIC 

(202) 898-3951 

Chart 8

0.0 

2.0 

4.0 

6.0 

8.0 

10.0 

12.0 

14.0 

16.0 

1991 1993 1995 1997 1999 2001 2003 2005 2007 

Percent Noncurrent 

The Noncurrent Rate on Construction Loans Has Been 

Rising from Historic Lows 

78 78 101 128 133 159 

200 

281 

386 

436 453 451 480 

542 

598 621 

770 

0 

100 

200 

300 

400 

500 

600 

700 

800 

900 

12/91 12/93 12/95 12/97 12/99 12/01 12/03 12/05 9/07 

$ Billions 

FHLB Borrowings Rose Sharply 

FDIC QUARTERLY 4 2007, VOLUME 1, NO. 3 
 

 

Quarterly Banking Profile 

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

Return on assets (%) ................................................................ 1.11 1.33 1.28 1.28 1.28 1.38 1.30 

Return on equity (%) ................................................................. 10.52 12.87 12.31 12.43 13.20 15.05 14.08 

Core capital (leverage) ratio (%) ............................................... 8.14 8.29 8.23 8.25 8.11 7.88 7.86 

Noncurrent assets plus 

other real estate owned to assets (%) ................................... 0.73 0.50 0.53 0.50 0.53 0.75 0.90 

Net charge-offs to loans (%) ..................................................... 0.50 0.36 0.39 0.49 0.56 0.78 0.97 

Asset growth rate (%) ............................................................... 8.11 9.84 9.03 7.64 11.36 7.58 7.20 

Net interest margin (%) ............................................................. 3.32 3.43 3.31 3.47 3.52 3.73 3.96 

Net operating income growth (%) ............................................. -9.08 12.20 8.54 11.43 4.02 16.39 17.58 

Number of institutions reporting ................................................ 8,560 8,743 8,680 8,833 8,976 9,181 9,354 

Commercial banks ................................................................. 7,303 7,449 7,401 7,526 7,631 7,770 7,888 

Savings institutions ................................................................ 1,257 1,294 1,279 1,307 1,345 1,411 1,466 

Percentage of unprofitable institutions (%) ............................... 10.23 6.99 7.91 6.22 5.97 5.99 6.67 

Number of problem institutions ................................................. 65 47 50 52 80 116 136 

Assets of problem institutions (in billions) ................................. $19 $4 $8 $7 $28 $30 $39 

Number of failed/assisted institutions ....................................... 2 0 0 0 4 3 11 

* Excludes insured branches of foreign banks (IBAs).
 

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

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

(dollar figures in millions) 

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

3rd Quarter 

2007 

2nd Quarter 

2007 

3rd Quarter 

2006 

%Change 

06:3-07:3 

8,560 8,615 8,743 -2.1 

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

CONDITION DATA 

2,220,446 2,220,950 2,196,445 1.1 

Total assets .................................................................................................................. . .... $12,707,112 $12,260,815 $11,753,570 8.1 

Loans secured by real estate ........................................................................................ . 4,700,419 4,619,133 4,464,287 5.3 

1-4 Family residential mortgages ............................................................................... . 2,238,284 2,188,078 2,175,303 2.9 

Nonfarm nonresidential .............................................................................................. . 939,559 943,286 885,953 6.1 

Construction and development ................................................................................... 616,403 600,374 545,000 13.1 

Home equity lines ....................................................................................................... 591,360 576,684 554,890 6.6 

Commercial & industrial loans ....................................................................................... 1,389,545 1,300,007 1,180,769 17.7 

Loans to individuals ....................................................................................................... 1,013,337 980,884 954,854 6.1 

Credit cards ................................................................................................................ 384,540 373,951 383,143 0.4 

Farm loans ..................................................................................................................... 56,172 55,608 54,010 4.0 

Other loans & leases ..................................................................................................... 546,324 513,507 515,704 5.9 

Less: Unearned income ................................................................................................. . 2,237 3,068 2,235 0.1 

Total loans & leases ...................................................................................................... 7,703,559 7,466,070 7,167,388 7.5 

Less: Reserve for losses ............................................................................................... 86,935 81,222 77,841 11.7 

Net loans and leases ..................................................................................................... 7,616,624 7,384,848 7,089,548 7.4 

Securities ....................................................................................................................... 1,989,044 1,976,945 1,991,930 -0.1 

Other real estate owned ................................................................................................ 9,805 7,995 5,567 76.1 

Goodwill and other intangibles ...................................................................................... . 461,051 435,890 387,895 18.9 

All other assets .............................................................................................................. 2,630,588 2,455,138 2,278,631 15.4 

Total liabilities and capital ................................................................................................. 12,707,112 12,260,815 11,753,570 8.1 

Deposits ......................................................................................................................... 8,181,570 8,035,535 7,577,977 8.0 

Domestic office deposits ............................................................................................. . 6,741,161 6,691,951 6,474,123 4.1 

Foreign office deposits ............................................................................................... . 1,440,409 1,343,583 1,103,854 30.5 

Other borrowed funds .................................................................................................... 2,454,135 2,248,609 2,298,791 6.8 

Subordinated debt ......................................................................................................... 177,482 172,377 146,675 21.0 

All other liabilities ........................................................................................................... 566,607 525,086 506,258 11.9 

Equity capital ................................................................................................................. 1,327,318 1,279,208 1,223,868 8.5 

Loans and leases 30-89 days past due ............................................................................ 92,223 74,090 62,752 47.0 

Noncurrent loans and leases ............................................................................................ 82,960 66,995 52,538 57.9 

Restructured loans and leases ......................................................................................... 4,244 3,231 3,635 16.8 

Direct and indirect investments in real estate ................................................................... 1,101 1,080 1,119 -1.6 

Mortgage-backed securities ............................................................................................. . 1,199,186 1,217,987 1,208,741 -0.8 

Earning assets .................................................................................................................. 11,031,953 10,721,804 10,258,099 7.5 

FHLB Advances ................................................................................................................ 770,203 608,438 632,586 21.8 

Unused loan commitments ............................................................................................... 8,301,186 8,082,795 7,703,202 7.8 

Trust assets ...................................................................................................................... 21,501,189 20,748,637 18,064,588 19.0 

Assets securitized and sold*** .......................................................................................... 1,735,779 1,714,556 1,073,059 61.8 

Notional amount of derivatives*** ..................................................................................... 173,374,162 153,825,754 127,107,293 36.4 

INCOME DATA 

3rd Quarter 

2006 

%Change 

06:3-07:3 

First Three 

Qtrs 2007 

First Three 

Qtrs 2006 %Change 

3rd Quarter 

2007 

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

$542,980 $485,113 11.9 $188,431 $171,599 9.8 

278,779 231,185 20.6 97,193 85,956 13.1 

264,201 253,928 4.1 91,238 85,643 6.5 

37,085 19,858 86.8 16,637 7,481 122.4 

187,279 185,971 0.7 59,400 62,618 -5.1 

265,996 254,815 4.4 91,029 85,692 6.2 

2,439 1,815 34.4 166 864 -80.8 

48,187 54,788 -12.1 13,391 17,986 -25.6 

-1,918 569 N/M -1,079 101 N/M 

100,732 112,823 -10.7 28,669 38,067 -24.7 

27,922 18,649 49.7 10,702 7,138 49.9 

94,393 60,396 56.3 27,868 19,910 40.0 

6,339 52,427 -87.9 800 18,156 -95.6

101,015 111,101 -9.1 29,661 37,428 -20.8 

*** Call Report filers only. N/M - Not Meaningful 

FDIC QUARTERLY 5 2007, VOLUME 1, NO.3 
TABLE III-A. Third Quarter 2007, All FDIC-Insured Institutions 

THIRD 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 

8,560 28 4 1,634 4,739 781 120 377 820 57 

Commercial banks .............................................. 7,303 25 4 1,630 4,259 169 95 332 747 42 

Savings institutions ............................................. 1,257 3 0 4 480 612 25 45 73 15 

Total assets (in billions) ......................................... $12,707.1 $423.6 $2,644.0 $157.3 $5,055.9 $1,454.2 $95.8 $40.1 $111.4 $2,724.9 

Commercial banks .............................................. 10,792.7 411.7 2,644.0 156.9 4,584.1 254.2 46.0 32.1 94.8 2,568.8 

Savings institutions ............................................. 1,914.4 11.8 0.0 0.4 471.8 1,199.9 49.8 8.1 16.5 156.1 

Total deposits (in billions) ...................................... 8,181.6 122.4 1,597.8 127.4 3,567.7 848.0 73.2 28.5 91.0 1,725.6 

Commercial banks .............................................. 7,011.5 120.6 1,597.8 127.1 3,265.5 113.4 32.9 23.0 78.0 1,653.2 

Savings institutions ............................................. 1,170.0 1.8 0.0 0.3 302.2 734.6 40.3 5.5 13.0 72.4 

Net income (in millions) .......................................... 28,669 4,137 4,454 510 12,160 1,133 275 223 295 5,483 

Commercial banks .............................................. 27,270 4,055 4,454 509 11,230 518 198 151 267 5,887 

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

Performance Ratios (annualized,%) 

1,399 82 0 1 929 614 77 72 28 -404 

Yield on earning assets .......................................... 6.95 13.37 6.53 7.27 7.10 6.64 7.77 5.69 6.62 6.30 

Cost of funding earning assets .............................. 3.58 4.62 3.76 3.27 3.41 4.02 3.27 2.55 2.90 3.42 

Net interest margin .............................................. 3.36 8.75 2.77 4.00 3.68 2.61 4.50 3.14 3.72 2.88 

Noninterest income to assets ................................. 1.91 11.24 1.93 0.71 1.42 0.91 2.31 9.43 1.05 1.84 

Noninterest expense to assets ............................... 2.92 9.04 2.71 2.65 2.82 2.08 3.45 8.73 3.04 2.72 

Loan and lease loss provision to assets ................ 0.53 3.42 0.63 0.16 0.33 0.75 1.38 0.11 0.15 0.27 

Net operating income to assets ............................. 0.95 3.67 0.65 1.31 1.07 0.32 1.11 2.21 1.03 0.88 

Pretax return on assets .......................................... 1.35 6.09 0.99 1.56 1.42 0.47 1.76 3.40 1.31 1.24 

Return on assets .................................................... 0.92 3.98 0.69 1.31 0.98 0.32 1.17 2.23 1.07 0.83 

Return on equity ..................................................... 8.81 16.76 8.91 11.64 9.06 3.30 10.86 11.48 9.31 7.82 

Net charge-offs to loans and leases ...................... 0.57 3.98 0.77 0.26 0.30 0.42 1.05 0.32 0.22 0.42 

Loan and lease loss provision to net charge-offs ... 155.45 116.99 181.85 90.34 158.22 252.07 164.92 136.68 125.56 122.56 

Efficiency ratio ........................................................ 58.37 46.61 62.25 60.12 59.01 62.00 49.98 70.30 67.70 58.96 

% of unprofitable institutions .................................. 10.90 7.14 0.00 3.67 12.77 13.96 9.17 24.40 5.98 8.77 

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

Structural Changes 

49.47 64.29 75.00 61.08 46.78 38.16 43.33 46.42 54.39 49.12 

New Charters ...................................................... 42 0 0 1 7 2 0 31 1 0 

Institutions absorbed by mergers ........................ 93 0 0 8 70 2 1 0 1 11 

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

PRIOR THIRD QUARTERS 

(The way it was...) 

1 0 0 0 0 0 0 0 0 1 

Return on assets (%) ................................... 2006 1.31 4.09 0.92 1.30 1.32 1.06 1.60 2.12 1.07 1.35

 ............................. 2004 1.33 4.10 0.86 1.33 1.34 1.15 1.16 1.53 1.18 1.34

 ............................. 2002 1.34 3.76 0.65 1.38 1.31 1.36 1.18 1.60 1.20 1.51 

Net charge-offs to loans and leases (%) ..... 2006 0.40 3.86 0.64 0.15 0.19 0.18 1.21 0.12 0.17 0.23

 ............................. 2004 0.51 4.24 0.89 0.20 0.28 0.10 1.10 0.27 0.26 0.26

 ............................. 2002 0.98 5.35 2.17 0.30 0.68 0.15 1.29 0.42 0.34 0.86 

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

FDIC QUARTERLY 6 2007, VOLUME 1, NO. 3 
 

Quarterly Banking Profile 

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

THIRD 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 

8,560 3,513 4,392 539 116 1,047 1,214 1,794 1,990 1,740 775 

Commercial banks ............................................... 7,303 3,131 3,673 415 84 547 1,069 1,479 1,885 1,618 705 

Savings institutions .............................................. 1,257 382 719 124 32 500 145 315 105 122 70 

Total assets (in billions) .......................................... $12,707.1 $186.0 $1,296.8 $1,408.3 $9,816.0 $2,381.6 $3,197.1 $2,796.5 $931.6 $659.5 $2,740.9 

Commercial banks ............................................... 10,792.7 166.5 1,050.3 1,100.1 8,475.8 1,710.3 2,920.1 2,641.0 891.8 542.4 2,087.0 

Savings institutions .............................................. 1,914.4 19.5 246.5 308.2 1,340.2 671.2 277.0 155.4 39.8 117.1 653.9 

Total deposits (in billions) ....................................... 8,181.6 151.2 1,036.0 1,009.6 5,984.8 1,470.4 2,064.2 1,786.9 661.4 492.6 1,706.0 

Commercial banks ............................................... 7,011.5 136.5 850.4 793.0 5,231.7 1,024.5 1,901.2 1,675.8 633.3 422.2 1,354.6 

Savings institutions .............................................. 1,170.0 14.7 185.5 216.7 753.1 445.9 163.0 111.2 28.1 70.4 351.4 

Net income (in millions) .......................................... 28,669 369 3,328 3,904 21,068 4,828 6,083 6,348 3,758 1,866 5,784 

Commercial banks ............................................... 27,270 357 2,932 3,433 20,547 4,686 6,424 6,228 3,709 1,606 4,616 

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

Performance Ratios (annualized,%) 

1,399 12 396 470 521 142 -341 120 49 260 1,168 

Yield on earning assets .......................................... 6.95 7.18 7.28 7.21 6.86 6.96 6.62 6.54 7.71 7.35 7.39 

Cost of funding earning assets ............................... 3.58 3.05 3.38 3.48 3.64 3.55 3.52 3.54 3.45 3.41 3.82 

Net interest margin .............................................. 3.36 4.13 3.90 3.73 3.22 3.41 3.10 3.00 4.26 3.94 3.56 

Noninterest income to assets ................................. 1.91 1.45 1.11 1.61 2.07 2.18 1.47 1.78 3.35 1.40 1.95 

Noninterest expense to assets ............................... 2.92 4.00 3.09 2.92 2.88 3.23 2.49 2.72 4.09 3.17 2.91 

Loan and lease loss provision to assets ................. 0.53 0.23 0.25 0.35 0.60 0.63 0.39 0.38 0.58 0.28 0.83 

Net operating income to assets .............................. 0.95 0.79 1.02 1.18 0.91 0.90 0.87 0.90 1.58 1.13 0.90 

Pretax return on assets .......................................... 1.35 1.04 1.37 1.68 1.31 1.21 1.18 1.32 2.45 1.52 1.29 

Return on assets .................................................... 0.92 0.80 1.04 1.12 0.88 0.84 0.77 0.91 1.63 1.15 0.87 

Return on equity ..................................................... 8.81 5.87 9.86 9.92 8.57 6.77 7.61 10.17 16.16 11.13 8.08 

Net charge-offs to loans and leases ...................... 0.57 0.24 0.24 0.35 0.66 0.93 0.28 0.43 0.74 0.29 0.72 

Loan and lease loss provision to net charge-offs ... 155.45 147.01 150.43 144.22 156.84 117.69 224.79 156.68 111.67 146.13 179.52 

Efficiency ratio ........................................................ 58.37 75.52 65.38 57.19 57.27 57.11 59.01 60.68 56.58 63.19 56.47 

% of unprofitable institutions .................................. 10.90 17.31 6.31 5.94 13.79 15.19 16.06 10.76 6.63 7.01 17.03 

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

Structural Changes 

49.47 49.33 49.93 48.42 41.38 42.60 39.21 47.71 53.62 58.33 48.39 

New Charters ...................................................... 42 40 1 1 0 2 18 5 3 3 11 

Institutions absorbed by mergers ........................ 93 27 45 12 9 29 20 15 13 11 5 

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

PRIOR THIRD QUARTERS 

(The way it was...) 

1 0 0 1 0 0 1 0 0 0 0 

Return on assets (%) .................................... 2006 1.31 1.02 1.23 1.27 1.33 1.13 1.37 1.01 1.79 1.22 1.82

 ............................. 2004 1.33 1.08 1.22 1.47 1.33 1.13 1.46 1.21 1.49 1.46 1.67

 ............................. 2002 1.34 1.11 1.23 1.54 1.33 1.10 1.38 1.29 1.64 1.44 1.75 

Net charge-offs to loans and leases (%) ...... 2006 0.40 0.16 0.14 0.20 0.49 0.63 0.18 0.27 0.46 0.23 0.62

 ............................. 2004 0.51 0.25 0.22 0.34 0.60 0.73 0.26 0.43 0.61 0.30 0.54

 ............................. 2002 0.98 0.31 0.36 0.76 1.21 1.51 0.73 0.80 1.15 0.42 0.77 

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

FDIC QUARTERLY 7 2007, VOLUME 1, NO.3 
TABLE IV-A. First Three Quarters 2007, All FDIC-Insured Institutions 

FIRST THREE QUARTERS 

(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 

8,560 28 4 1,634 4,739 781 120 377 820 57 

Commercial banks ............................................... 7,303 25 4 1,630 4,259 169 95 332 747 42 

Savings institutions .............................................. 1,257 3 0 4 480 612 25 45 73 15 

Total assets (in billions) .......................................... $12,707.1 $423.6 $2,644.0 $157.3 $5,055.9 $1,454.2 $95.8 $40.1 $111.4 $2,724.9 

Commercial banks ............................................... 10,792.7 411.7 2,644.0 156.9 4,584.1 254.2 46.0 32.1 94.8 2,568.8 

Savings institutions .............................................. 1,914.4 11.8 0.0 0.4 471.8 1,199.9 49.8 8.1 16.5 156.1 

Total deposits (in billions) ....................................... 8,181.6 122.4 1,597.8 127.4 3,567.7 848.0 73.2 28.5 91.0 1,725.6 

Commercial banks ............................................... 7,011.5 120.6 1,597.8 127.1 3,265.5 113.4 32.9 23.0 78.0 1,653.2 

Savings institutions .............................................. 1,170.0 1.8 0.0 0.3 302.2 734.6 40.3 5.5 13.0 72.4 

Net income (in millions) .......................................... 100,732 11,649 16,190 1,432 39,953 7,557 962 715 860 21,416 

Commercial banks ............................................... 90,184 11,030 16,190 1,429 36,870 1,700 699 481 788 20,996 

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

Performance Ratios (annualized,%) 

10,549 618 0 3 3,083 5,856 263 234 73 419 

Yield on earning assets .......................................... 6.83 13.23 6.28 7.15 7.02 6.59 7.23 5.53 6.51 6.16 

Cost of funding earning assets ............................... 3.50 4.80 3.68 3.19 3.35 3.93 2.99 2.47 2.84 3.29 

Net interest margin .............................................. 3.32 8.43 2.60 3.96 3.67 2.66 4.24 3.06 3.67 2.88 

Noninterest income to assets ................................. 2.05 10.31 2.31 0.68 1.51 0.99 1.93 9.44 1.01 2.10 

Noninterest expense to assets ............................... 2.92 8.36 2.84 2.66 2.84 2.05 2.92 8.59 3.01 2.66 

Loan and lease loss provision to assets ................. 0.41 3.10 0.45 0.15 0.27 0.38 0.91 0.08 0.11 0.22 

Net operating income to assets .............................. 1.11 3.47 0.85 1.26 1.14 0.65 1.38 2.35 1.01 1.12 

Pretax return on assets ........................................... 1.63 5.81 1.26 1.50 1.59 1.11 2.14 3.55 1.29 1.67 

Return on assets ..................................................... 1.11 3.74 0.87 1.25 1.08 0.73 1.40 2.39 1.04 1.11 

Return on equity ..................................................... 10.52 15.63 11.25 11.32 10.11 7.44 13.75 12.34 9.16 10.30 

Net charge-offs to loans and leases ....................... 0.50 3.90 0.65 0.19 0.28 0.29 0.98 0.29 0.17 0.35 

Loan and lease loss provision to net charge-offs ... 132.82 108.79 155.91 123.18 137.62 188.45 118.75 119.97 117.12 118.18 

Efficiency ratio ........................................................ 57.33 46.06 61.90 61.10 58.41 58.87 47.98 69.94 68.34 56.16 

% of unprofitable institutions ................................... 10.23 10.71 0.00 2.63 12.20 13.06 8.33 24.67 5.37 5.26 

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

Condition Ratios (%) 

49.50 57.14 75.00 57.34 50.12 30.99 44.17 43.50 51.10 49.12 

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

Loss Allowance to: 

86.82 77.67 84.04 91.57 88.28 91.46 91.71 88.48 91.79 85.07 

Loans and leases ................................................ 1.13 3.99 1.23 1.31 1.14 0.61 1.12 1.35 1.18 0.74 

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

Noncurrent assets plus 

104.79 216.17 117.12 127.52 113.24 45.93 179.85 142.44 126.60 77.38 

other real estate owned to assets ........................... 0.73 1.34 0.51 0.81 0.81 1.09 0.53 0.27 0.64 0.53 

Equity capital ratio .................................................. 10.45 23.07 7.78 11.32 10.85 9.44 11.89 19.58 11.58 10.56 

Core capital (leverage) ratio ................................... 8.14 15.18 6.23 10.46 8.45 7.87 9.53 18.01 11.21 8.10 

Tier 1 risk-based capital ratio .................................. 10.22 13.53 8.19 13.85 9.64 12.82 11.46 40.05 18.41 10.83 

Total risk-based capital ratio ................................... 12.75 16.33 11.93 14.92 11.84 14.48 13.04 41.13 19.55 13.37 

Net loans and leases to deposits ............................ 93.09 242.65 74.20 82.47 97.76 120.12 104.10 33.82 68.72 79.64 

Net loans to total assets ......................................... 59.94 70.12 44.84 66.80 68.99 70.05 79.47 24.02 56.13 50.43 

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

Structural Changes 

53.05 26.31 26.39 81.01 67.29 58.23 75.24 68.84 81.69 50.08 

New Charters ....................................................... 131 1 0 4 32 4 0 89 1 0 

Institutions absorbed by mergers ........................ 247 1 0 22 191 8 2 2 3 18 

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

PRIOR FIRST THREE QUARTERS 

(The way it was...) 

2 0 0 0 0 1 0 0 0 1 

Number of institutions ................................... 2006 8,743 29 4 1,691 4,710 845 125 398 886 55

 ................................. 2004 9,024 35 6 1,783 4,385 1,000 136 458 1,138 83

 ................................ 2002 9,415 41 5 1,877 4,081 1,159 206 453 1,495 98 

Total assets (in billions) ................................ 2006 $11,753.6 $382.0 $2,128.5 $151.5 $4,673.2 $1,790.4 $107.1 $42.3 $117.4 $2,361.2

 ................................. 2004 9,877.2 367.9 1,565.9 137.7 3,195.3 1,405.2 211.7 54.0 147.6 2,791.9

 ................................ 2002 8,272.8 291.0 1,232.2 124.7 3,394.2 1,279.5 168.3 49.0 192.5 1,541.3 

Return on assets (%) .................................... 2006 1.33 4.42 1.03 1.29 1.32 1.07 1.69 1.33 1.07 1.31

 ................................. 2004 1.29 3.90 0.89 1.28 1.33 1.20 0.82 1.47 1.14 1.23

 ................................ 2002 1.34 3.55 0.85 1.31 1.30 1.34 1.40 1.39 1.19 1.40 

Net charge-offs to loans & leases (%) ......... 2006 0.36 3.38 0.59 0.14 0.18 0.14 1.00 0.53 0.17 0.20

 ................................ 2004 0.55 4.69 1.05 0.17 0.29 0.11 0.94 0.46 0.26 0.25

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

Noncurrent assets plus 

0.97 6.07 1.78 0.26 0.67 0.16 1.12 0.47 0.30 0.86 

OREO to assets (%) ................................. 2006 0.50 1.35 0.40 0.67 0.51 0.52 0.65 0.20 0.52 0.37

 ................................. 2004 0.57 1.30 0.69 0.77 0.55 0.59 0.63 0.30 0.63 0.40

 ................................ 2002 0.92 1.61 1.28 0.93 0.88 0.68 1.34 0.36 0.70 0.80 

Equity capital ratio (%) ................................. 2006 10.41 27.18 7.82 10.94 10.39 10.54 9.76 22.46 11.11 9.73

 ................................. 2004 10.13 20.78 7.27 10.87 10.40 8.74 13.62 16.95 10.93 10.25

 ................................ 2002 9.22 15.39 7.26 11.04 9.53 8.81 7.78 16.73 10.89 8.87 

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

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

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

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

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

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

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

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

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

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

activity with no identified asset concentrations. 

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

activity with no identified asset concentrations. 

FDIC QUARTERLY 8 2007, VOLUME 1, NO. 3 
 

Quarterly Banking Profile 

TABLE IV-A. First Three Quarters 2007, All FDIC-Insured Institutions 

FIRST THREE QUARTERS 

(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 

8,560 3,513 4,392 539 116 1,047 1,214 1,794 1,990 1,740 775 

Commercial banks ............................................... 7,303 3,131 3,673 415 84 547 1,069 1,479 1,885 1,618 705 

Savings institutions .............................................. 1,257 382 719 124 32 500 145 315 105 122 70 

Total assets (in billions) .......................................... $12,707.1 $186.0 $1,296.8 $1,408.3 $9,816.0 $2,381.6 $3,197.1 $2,796.5 $931.6 $659.5 $2,740.9 

Commercial banks ............................................... 10,792.7 166.5 1,050.3 1,100.1 8,475.8 1,710.3 2,920.1 2,641.0 891.8 542.4 2,087.0 

Savings institutions .............................................. 1,914.4 19.5 246.5 308.2 1,340.2 671.2 277.0 155.4 39.8 117.1 653.9 

Total deposits (in billions) ....................................... 8,181.6 151.2 1,036.0 1,009.6 5,984.8 1,470.4 2,064.2 1,786.9 661.4 492.6 1,706.0 

Commercial banks ............................................... 7,011.5 136.5 850.4 793.0 5,231.7 1,024.5 1,901.2 1,675.8 633.3 422.2 1,354.6 

Savings institutions .............................................. 1,170.0 14.7 185.5 216.7 753.1 445.9 163.0 111.2 28.1 70.4 351.4 

Net income (in millions) .......................................... 100,732 1,159 10,078 11,051 78,444 16,257 24,756 20,963 10,937 5,538 22,280 

Commercial banks ............................................... 90,184 1,118 8,777 9,429 70,859 14,017 24,150 20,346 10,760 4,729 16,182 

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

Performance Ratios (annualized,%) 

10,549 42 1,300 1,621 7,585 2,240 606 617 178 810 6,098 

Yield on earning assets .......................................... 6.83 7.00 7.17 7.10 6.73 6.80 6.54 6.36 7.62 7.23 7.31 

Cost of funding earning assets ............................... 3.50 2.93 3.29 3.39 3.57 3.46 3.45 3.48 3.29 3.33 3.76 

Net interest margin .............................................. 3.32 4.07 3.87 3.71 3.17 3.34 3.09 2.88 4.33 3.90 3.55 

Noninterest income to assets ................................. 2.05 1.35 1.12 1.58 2.26 2.17 1.72 2.08 3.42 1.40 2.03 

Noninterest expense to assets ............................... 2.92 3.82 3.09 2.93 2.88 3.05 2.55 2.81 4.19 3.16 2.86 

Loan and lease loss provision to assets ................. 0.41 0.18 0.20 0.31 0.45 0.56 0.24 0.28 0.61 0.22 0.58 

Net operating income to assets .............................. 1.11 0.84 1.05 1.16 1.11 0.98 1.09 1.01 1.62 1.15 1.16 

Pretax return on assets .......................................... 1.63 1.10 1.42 1.63 1.67 1.44 1.61 1.49 2.40 1.53 1.74 

Return on assets .................................................... 1.11 0.85 1.06 1.08 1.12 0.97 1.07 1.02 1.63 1.16 1.16 

Return on equity ..................................................... 10.52 6.19 10.16 9.58 10.82 7.80 10.43 11.36 15.79 11.32 10.65 

Net charge-offs to loans and leases ....................... 0.50 0.18 0.18 0.35 0.59 0.87 0.25 0.37 0.66 0.23 0.64 

Loan and lease loss provision to net charge-offs ... 132.82 164.51 155.94 130.27 131.72 112.92 154.07 139.58 129.22 150.80 140.47 

Efficiency ratio ........................................................ 57.33 74.75 65.42 57.90 55.88 56.60 56.86 60.13 56.99 63.53 54.50 

% of unprofitable institutions .................................. 10.23 16.99 5.71 3.90 6.03 15.00 15.32 9.36 5.53 7.18 16.77 

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

Condition Ratios (%) 

49.50 49.25 50.27 46.75 40.52 38.11 43.33 45.48 53.12 58.79 53.68 

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

Loss Allowance to: 

86.82 91.95 92.02 90.80 85.46 86.35 86.23 86.88 86.03 89.99 87.34 

Loans and leases ................................................ 1.13 1.29 1.16 1.20 1.11 1.41 0.93 1.20 1.19 1.10 1.06 

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

Noncurrent assets plus 

104.79 115.62 111.81 113.31 102.07 128.01 119.76 97.79 81.87 112.11 92.39 

other real estate owned to assets .......................... 0.73 0.87 0.89 0.83 0.69 0.66 0.54 0.78 1.19 0.77 0.80 

Equity capital ratio .................................................. 10.45 13.69 10.57 11.39 10.23 12.41 10.16 9.09 10.14 10.40 10.58 

Core capital (leverage) ratio ................................... 8.14 13.53 10.07 9.58 7.56 9.01 7.26 7.37 8.26 8.88 9.01 

Tier 1 risk-based capital ratio ................................. 10.22 19.65 13.36 12.16 9.38 12.20 8.97 8.87 9.64 11.87 11.48 

Total risk-based capital ratio .................................. 12.75 20.70 14.47 13.43 12.29 14.15 11.42 11.80 12.28 13.25 14.35 

Net loans and leases to deposits ........................... 93.09 77.06 87.23 94.80 94.23 90.38 93.86 86.34 98.07 86.29 101.63 

Net loans to total assets ......................................... 59.94 62.64 69.69 67.96 57.45 55.80 60.60 55.17 69.62 64.46 63.26 

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

Structural Changes 

53.05 81.28 79.78 71.08 46.40 53.20 56.69 51.43 64.58 74.06 41.36 

New Charters ...................................................... 131 124 5 2 0 14 40 12 7 24 34 

Institutions absorbed by mergers ........................ 247 84 128 26 9 62 40 44 36 40 25 

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

PRIOR FIRST THREE QUARTERS 

(The way it was...) 

2 1 0 1 0 1 1 0 0 0 0 

Number of institutions ................................... 2006 8,743 3,731 4,369 523 120 1,097 1,232 1,848 2,027 1,767 772

 ................................ 2004 9,024 4,204 4,223 480 117 1,136 1,223 1,968 2,104 1,840 753

 ................................ 2002 9,415 4,809 4,059 441 106 1,222 1,249 2,067 2,180 1,910 787 

Total assets (in billions) ................................ 2006 $11,753.6 $194.2 $1,283.5 $1,422.5 $8,853.4 $2,962.9 $2,928.6 $2,736.1 $814.5 $644.3 $1,667.3

 ................................ 2004 9,877.2 217.7 1,177.3 1,326.4 7,155.9 3,403.0 2,104.7 1,745.7 763.1 588.8 1,271.9

 ................................ 2002 8,272.8 243.9 1,113.3 1,256.3 5,659.4 2,826.3 1,667.5 1,561.3 429.8 569.2 1,218.7 

Return on assets (%) .................................... 2006 1.33 1.01 1.20 1.30 1.36 1.24 1.34 1.07 1.68 1.27 1.77

 ................................ 2004 1.29 1.02 1.19 1.48 1.28 1.14 1.40 1.13 1.51 1.35 1.61

 ................................ 2002 1.34 1.05 1.18 1.45 1.36 1.17 1.36 1.32 1.59 1.42 1.60 

Net charge-offs to loans & leases (%) .......... 2006 0.36 0.14 0.14 0.19 0.43 0.56 0.16 0.24 0.39 0.20 0.56

 ................................ 2004 0.55 0.22 0.23 0.35 0.66 0.81 0.31 0.36 0.75 0.26 0.60

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

Noncurrent assets plus 

0.97 0.28 0.33 0.74 1.19 1.48 0.69 0.77 1.19 0.40 0.79 

OREO to assets (%) .................................. 2006 0.50 0.72 0.57 0.46 0.49 0.43 0.31 0.54 0.89 0.62 0.63

 ................................ 2004 0.57 0.82 0.61 0.53 0.56 0.56 0.39 0.68 0.61 0.65 0.66

 ................................ 2002 0.92 0.87 0.75 0.73 1.00 1.05 0.79 1.04 0.87 0.84 0.72 

Equity capital ratio (%) .................................. 2006 10.41 13.04 10.46 11.00 10.25 11.13 9.76 9.03 11.18 10.36 12.20

 ................................ 2004 10.13 11.94 10.20 10.83 9.94 10.16 8.45 10.47 10.52 10.17 12.14

 ................................ 2002 9.22 11.42 10.05 10.08 8.78 8.92 9.42 8.62 10.32 9.76 9.79 

* Regions:
 

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

Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

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

FDIC QUARTERLY 9 2007, VOLUME 1, NO.3 
TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

September 30, 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 ......................................... 1.27 3.14 1.82 1.13 1.05 1.63 0.66 1.10 1.52 1.19 

Construction and development ....................................... 1.37 0.00 0.61 2.19 1.30 3.34 1.73 1.35 1.41 1.18 

Nonfarm nonresidential ................................................... 0.62 0.00 0.41 1.00 0.65 0.81 0.50 0.62 1.22 0.35 

Multifamily residential real estate .................................... 0.43 0.00 0.07 0.88 0.53 0.26 0.06 2.21 0.96 0.36 

Home equity loans .......................................................... 0.91 2.46 0.89 0.68 0.74 1.21 0.65 0.52 0.86 0.97 

Other 1-4 family residential ............................................. 1.71 5.59 2.48 1.75 1.47 1.76 0.64 1.28 1.76 1.56 

Commercial and industrial loans ........................................ 0.65 2.65 0.53 1.61 0.65 0.93 0.94 1.65 1.52 0.44 

Loans to individuals ............................................................ 1.99 2.31 2.48 2.09 1.65 1.30 1.62 1.82 2.14 1.66 

Credit card loans ............................................................. 2.42 2.31 3.36 0.98 2.06 2.09 1.26 3.54 1.08 2.14 

Other loans to individuals ................................................ 1.72 2.29 2.08 2.16 1.59 0.75 1.73 1.67 2.18 1.56 

All other loans and leases (including farm) ........................ 0.52 0.12 0.66 0.53 0.58 0.41 0.10 0.85 0.51 0.31 

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

Percent of Loans Noncurrent** 

1.20 2.22 1.41 1.11 0.99 1.60 1.16 1.28 1.53 1.01 

All real estate loans ............................................................ 1.27 2.48 1.44 1.15 1.19 1.36 0.39 0.94 0.98 1.32 

Construction and development ....................................... 1.85 0.00 1.10 3.03 1.84 2.70 0.75 2.76 2.01 1.57 

Nonfarm nonresidential ................................................... 0.73 0.00 0.56 1.33 0.73 0.85 0.64 0.94 1.26 0.59 

Multifamily residential real estate .................................... 0.68 0.00 0.38 1.10 0.85 0.44 0.02 1.17 1.33 0.42 

Home equity loans .......................................................... 0.62 1.56 0.53 0.40 0.48 0.97 0.17 0.12 0.71 0.64 

Other 1-4 family residential ............................................. 1.57 5.71 1.91 0.90 1.48 1.45 0.51 0.72 0.80 1.81 

Commercial and industrial loans ........................................ 0.64 1.96 0.33 1.33 0.69 0.94 0.74 2.01 1.15 0.59 

Loans to individuals ............................................................ 1.18 1.96 1.62 0.71 0.67 0.85 0.82 0.55 0.67 0.52 

Credit card loans ............................................................. 1.93 1.99 2.18 0.71 1.49 1.73 1.14 1.21 0.80 1.87 

Other loans to individuals ................................................ 0.73 1.78 1.37 0.71 0.56 0.23 0.72 0.49 0.66 0.23 

All other loans and leases (including farm) ........................ 0.44 0.03 0.61 0.64 0.39 1.01 0.04 0.38 0.61 0.27 

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

Percent of Loans Charged-off (net, YTD) 

1.08 1.85 1.05 1.02 1.01 1.33 0.62 0.95 0.93 0.96 

All real estate loans ............................................................ 0.16 1.55 0.29 0.06 0.14 0.17 0.09 0.06 0.06 0.11 

Construction and development ....................................... 0.20 0.00 0.03 0.23 0.20 0.40 0.11 0.12 0.24 0.12 

Nonfarm nonresidential ................................................... 0.07 0.00 0.03 0.08 0.08 0.03 0.01 0.05 0.06 0.02 

Multifamily residential real estate .................................... 0.10 0.00 -0.02 0.02 0.15 0.01 0.06 0.06 0.05 0.03 

Home equity loans .......................................................... 0.34 1.78 0.38 0.04 0.27 0.55 0.15 0.01 0.04 0.31 

Other 1-4 family residential ............................................. 0.14 1.04 0.32 0.08 0.14 0.13 0.06 0.06 0.06 0.07 

Commercial and industrial loans ........................................ 0.43 4.51 0.10 0.68 0.40 0.38 2.76 0.39 0.40 0.37 

Loans to individuals ............................................................ 2.42 4.16 2.78 0.60 1.15 3.53 1.54 0.76 0.59 1.52 

Credit card loans ............................................................. 4.09 4.19 3.48 2.31 3.51 7.42 3.00 4.30 1.88 3.91 

Other loans to individuals ................................................ 1.38 3.94 2.47 0.49 0.81 0.46 1.07 0.42 0.54 1.01 

All other loans and leases (including farm) ........................ 0.18 0.00 0.06 0.00 0.30 0.41 0.05 0.98 0.00 0.20 

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

Loans Outstanding (in billions) 

0.50 3.90 0.65 0.19 0.28 0.29 0.98 0.29 0.17 0.35 

All real estate loans ............................................................ $4,700.4 $1.8 $473.1 $59.2 $2,338.6 $965.1 $31.7 $6.0 $44.5 $780.6 

Construction and development ....................................... 616.4 0.0 9.5 5.8 517.5 25.0 0.9 0.5 3.0 54.3 

Nonfarm nonresidential ................................................... 939.6 0.0 24.7 16.1 738.8 36.6 2.0 1.7 10.4 109.3 

Multifamily residential real estate .................................... 192.8 0.0 11.7 1.0 115.5 47.7 0.3 0.1 0.8 15.6 

Home equity loans .......................................................... 591.4 1.4 92.8 1.1 209.9 102.0 11.4 0.2 1.7 171.0 

Other 1-4 family residential ............................................. 2,238.3 0.4 285.4 15.6 717.6 753.0 17.0 3.3 25.6 420.4 

Commercial and industrial loans ........................................ 1,389.5 33.0 306.7 14.9 723.3 18.9 3.6 1.2 6.4 281.5 

Loans to individuals ............................................................ 1,013.3 255.6 214.4 6.7 270.6 36.0 40.1 1.8 7.8 180.3 

Credit card loans ............................................................. 384.5 226.4 66.7 0.4 34.5 14.8 9.4 0.1 0.3 31.9 

Other loans to individuals ................................................ 628.8 29.2 147.7 6.3 236.0 21.3 30.7 1.6 7.6 148.4 

All other loans and leases (including farm) ........................ 602.5 19.0 206.7 25.6 196.9 5.0 1.7 0.8 4.6 142.2 

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

Memo: Other Real Estate Owned (in millions) 

7,705.8 309.3 1,200.9 106.5 3,529.4 1,024.9 77.1 9.8 63.3 1,384.6 

All other real estate owned .............................................. 9,804.8 -15.1 891.1 187.5 5,153.3 2,174.7 23.7 13.3 126.3 1,250.0 

Construction and development ....................................... 1,489.0 0.0 0.0 53.3 1,277.6 107.1 0.8 0.9 17.6 31.7 

Nonfarm nonresidential ................................................... 1,362.2 0.0 6.0 60.3 1,096.5 69.6 5.2 8.0 47.3 69.2 

Multifamily residential real estate .................................... 318.7 0.0 0.0 3.6 275.0 14.7 0.2 0.0 8.9 16.4 

1-4 family residential ....................................................... 5,342.2 1.0 397.1 45.1 2,218.9 1,965.0 17.5 4.4 48.6 644.6 

Farmland ......................................................................... 67.8 0.0 0.0 25.0 38.3 0.2 0.1 0.0 3.7 0.6 

* 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. 3 
 

Quarterly Banking Profile 

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

September 30, 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 ............................. 1.27 1.44 1.09 0.87 1.40 0.96 1.16 1.40 1.07 1.25 1.62 

Construction and development ........................... 1.37 1.41 1.44 1.18 1.44 1.39 1.14 1.87 1.60 0.99 1.38 

Nonfarm nonresidential ....................................... 0.62 1.14 0.82 0.56 0.52 0.69 0.48 0.87 0.68 0.72 0.34 

Multifamily residential real estate ........................ 0.43 0.84 0.73 0.53 0.32 0.27 0.34 1.00 0.77 0.88 0.24 

Home equity loans .............................................. 0.91 0.86 0.83 0.70 0.94 0.70 0.99 0.80 1.03 0.62 1.04 

Other 1-4 family residential ................................. 1.71 1.95 1.27 1.07 1.85 1.10 1.54 1.85 1.25 2.16 2.31 

Commercial and industrial loans ............................ 0.65 1.50 1.15 0.86 0.55 0.94 0.35 0.71 0.98 0.82 0.55 

Loans to individuals ............................................... 1.99 2.47 1.76 1.99 2.00 2.09 1.70 1.71 2.15 1.53 2.28 

Credit card loans ................................................. 2.42 1.89 2.32 2.23 2.44 2.26 2.76 2.06 2.21 1.20 2.95 

Other loans to individuals ................................... 1.72 2.47 1.72 1.86 1.70 1.82 1.57 1.59 2.11 1.60 1.83 

All other loans and leases (including farm) ............ 0.52 0.63 0.48 0.58 0.52 0.98 0.25 0.82 0.50 0.74 0.13 

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

Percent of Loans Noncurrent** 

1.20 1.44 1.11 0.95 1.25 1.19 1.00 1.22 1.16 1.18 1.42 

All real estate loans ............................................... 1.27 1.14 1.09 1.17 1.33 1.02 0.93 1.68 1.99 1.12 1.29 

Construction and development ........................... 1.85 1.72 2.11 1.88 1.71 2.35 1.58 2.50 1.96 1.22 1.71 

Nonfarm nonresidential ....................................... 0.73 1.21 0.85 0.72 0.66 1.01 0.47 1.09 0.79 0.66 0.36 

Multifamily residential real estate ........................ 0.68 0.91 0.99 1.21 0.44 0.36 0.59 2.08 0.72 1.35 0.29 

Home equity loans .............................................. 0.62 0.60 0.49 0.50 0.63 0.46 0.70 0.57 0.59 0.25 0.71 

Other 1-4 family residential ................................. 1.57 1.04 0.83 1.29 1.71 0.97 1.01 2.21 3.73 1.65 1.70 

Commercial and industrial loans ............................ 0.64 1.42 1.09 0.77 0.56 1.18 0.42 0.60 0.82 0.72 0.47 

Loans to individuals ............................................... 1.18 0.90 0.57 0.88 1.25 1.56 0.72 0.81 0.94 0.54 1.55 

Credit card loans ................................................. 1.93 0.91 1.19 1.73 1.95 2.10 1.98 1.58 1.64 1.01 1.98 

Other loans to individuals ................................... 0.73 0.90 0.52 0.43 0.77 0.69 0.56 0.55 0.40 0.44 1.25 

All other loans and leases (including farm) ............ 0.44 0.72 0.55 0.39 0.43 0.18 0.25 0.54 0.30 0.68 0.78 

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

Percent of Loans Charged-off (net, YTD) 

1.08 1.11 1.04 1.06 1.09 1.10 0.78 1.23 1.45 0.98 1.14 

All real estate loans ............................................... 0.16 0.08 0.09 0.14 0.18 0.07 0.13 0.25 0.19 0.10 0.19 

Construction and development ........................... 0.20 0.19 0.19 0.22 0.19 0.19 0.20 0.28 0.18 0.14 0.13 

Nonfarm nonresidential ....................................... 0.07 0.07 0.06 0.09 0.06 0.06 0.05 0.12 0.04 0.06 0.06 

Multifamily residential real estate ........................ 0.10 0.12 0.11 0.31 0.02 0.01 0.30 0.24 0.02 0.19 0.02 

Home equity loans .............................................. 0.34 0.13 0.10 0.22 0.37 0.18 0.31 0.34 0.50 0.20 0.43 

Other 1-4 family residential ................................. 0.14 0.08 0.08 0.08 0.16 0.06 0.08 0.28 0.15 0.07 0.20 

Commercial and industrial loans ............................ 0.43 0.47 0.40 0.51 0.42 0.93 0.25 0.27 0.84 0.30 0.36 

Loans to individuals ............................................... 2.42 0.52 0.91 2.03 2.57 3.28 1.13 1.42 2.67 1.06 3.25 

Credit card loans ................................................. 4.09 2.80 5.17 3.67 4.11 4.23 3.92 3.34 3.88 2.73 4.42 

Other loans to individuals ................................... 1.38 0.48 0.59 1.23 1.48 1.64 0.72 0.75 1.61 0.67 2.52 

All other loans and leases (including farm) ............ 0.18 0.15 0.20 0.31 0.17 0.22 0.28 0.13 0.11 0.37 0.10 

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

Loans Outstanding (in billions) 

0.50 0.18 0.18 0.35 0.59 0.87 0.25 0.37 0.66 0.23 0.64 

All real estate loans ............................................... $4,700.4 $78.9 $708.7 $704.7 $3,208.1 $791.7 $1,295.1 $881.4 $375.1 $298.7 $1,058.3 

Construction and development ........................... 616.4 11.0 145.8 162.5 297.0 63.2 202.0 125.7 50.4 79.6 95.5 

Nonfarm nonresidential ....................................... 939.6 22.1 239.8 228.1 449.6 175.0 245.4 200.1 85.2 89.1 144.8 

Multifamily residential real estate ........................ 192.8 1.8 27.0 40.9 123.0 46.1 28.1 29.9 8.7 6.4 73.6 

Home equity loans .............................................. 591.4 2.5 33.1 41.2 514.4 57.5 184.8 151.6 74.1 19.7 103.6 

Other 1-4 family residential ................................. 2,238.3 32.0 236.3 218.8 1,751.2 445.8 615.5 358.0 138.9 94.0 586.1 

Commercial and industrial loans ............................ 1,389.5 17.0 120.3 150.7 1,101.5 196.2 331.9 350.8 117.5 74.1 319.0 

Loans to individuals ............................................... 1,013.3 9.3 49.7 78.1 876.3 272.3 179.6 171.6 96.5 39.6 253.7 

Credit card loans ................................................. 384.5 0.1 3.6 27.1 353.7 168.9 20.7 43.7 42.2 7.2 101.8 

Other loans to individuals ................................... 628.8 9.1 46.1 50.9 522.6 103.4 158.9 127.8 54.3 32.4 152.0 

All other loans and leases (including farm) ............ 602.5 12.9 36.2 35.8 517.6 88.0 149.4 157.9 67.3 17.5 122.3 

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

Memo: Other Real Estate Owned (in millions) 

7,705.8 118.1 914.8 969.4 5,703.5 1,348.2 1,956.0 1,561.7 656.5 430.0 1,753.4 

All other real estate owned .................................... 9,804.8 306.4 2,057.5 1,400.4 6,040.5 791.3 2,198.4 2,433.1 1,510.9 891.8 1,979.3 

Construction and development ........................... 1,489.0 48.5 688.5 480.2 271.8 143.0 490.7 256.9 225.1 265.7 107.5 

Nonfarm nonresidential ....................................... 1,362.2 99.3 622.5 285.1 355.3 156.2 319.2 363.9 217.3 241.2 64.4 

Multifamily residential real estate ........................ 318.7 10.3 72.1 91.7 144.6 27.1 148.6 83.3 15.0 25.4 19.3 

1-4 family residential ........................................... 5,342.2 135.5 636.7 532.1 4,037.8 439.5 1,191.9 1,187.6 553.8 306.5 1,663.0 

Farmland ............................................................. 67.8 12.7 34.1 8.6 12.5 12.7 5.1 5.0 11.5 31.8 1.7 

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

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

FDIC QUARTERLY 11 2007, VOLUME 1, NO.3 
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TABLE VI-A. Derivatives, All FDIC-Insured Commercial Banks and State-Chartered Savings Banks 

(dollar figures in millions; 

notional amounts unless otherwise indicated) 

3rd Quarter 

2007 

2nd Quarter 

2007 

1st Quarter 

2007 

4th Quarter 

2006 

3rd Quarter 

2006 

%Change 

06:3-07:3 

Asset Size Distribution 

Less than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater than 

$10 Billion 

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives ................................. 1,025 1,058 1,056 1,014 1,014 1.1 66 618 262 79 

Total assets of institutions reporting derivatives ........................... $9,460,401 $9,147,069 $8,872,062 $8,834,491 $8,411,745 12.5 $4,813 $269,166 $804,948 $8,381,474 

Total deposits of institutions reporting derivatives ........................... 6,031,943 5,900,334 5,750,636 5,751,266 5,431,479 11.1 3,788 212,908 580,996 5,234,251 

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

Derivative Contracts by Underlying Risk Exposure 

173,374,162 153,825,754 144,243,311 132,182,732 127,107,293 36.4 128 18,050 193,153 173,162,830 

Interest rate .......................................................................... 138,789,184 123,340,590 116,751,419 107,434,665 103,199,181 34.5 117 17,477 86,265 138,685,325 

Foreign exchange* .................................................................. 16,696,567 15,117,713 14,167,853 12,564,160 12,226,802 36.6 0 125 5,808 16,690,633 

Equity ................................................................................. 2,873,509 2,638,709 2,317,769 2,270,942 2,218,658 29.5 12 228 100,716 2,772,553 

Commodity & other (excluding credit derivatives) ........................... 1,025,685 951,725 840,505 893,310 1,558,264 -34.2 0 2 141 1,025,543 

Credit ................................................................................... 13,989,217 11,777,017 10,165,765 9,019,655 7,904,389 77.0 0 218 223 13,988,776 

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

Derivative Contracts by Transaction Type 

173,374,162 153,825,754 144,243,311 132,182,732 127,107,293 36.4 128 18,050 193,153 173,162,830 

Swaps ................................................................................... 111,410,085 95,320,189 88,006,970 81,339,865 77,556,008 43.7 58 9,948 62,861 111,337,218 

Futures & forwards ................................................................. 17,202,716 16,198,682 15,307,492 14,881,758 14,482,709 18.8 23 1,772 17,641 17,183,280 

Purchased options ................................................................. 14,652,412 14,377,620 14,816,440 12,944,893 13,301,484 10.2 5 3,730 106,954 14,541,723 

Written options ....................................................................... 15,033,435 14,842,430 14,667,326 13,332,489 12,945,812 16.1 41 2,272 4,825 15,026,296 

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

Fair Value of Derivative Contracts 

158,298,648 140,738,921 132,798,228 122,499,005 118,286,013 33.8 128 17,723 192,280 158,088,517 

Interest rate contracts .............................................................. 30,717 20,025 24,447 23,299 22,720 35.2 0 21 106 30,590 

Foreign exchange contracts ...................................................... 3,119 5,661 74,088 5,324 4,144 -24.7 0 0 -19 3,138 

Equity contracts ....................................................................... -20,872 -24,713 -18,845 -17,845 -13,526 54.3 1 11 37 -20,921 

Commodity & other (excluding credit derivatives) ........................... 1,664 1,946 22,530 2,658 2,562 -35.1 0 0 0 1,664 

Credit derivatives as guarantor ................................................... -104,120 -22,960 9,032 31,583 14,670 N/M 0 0 -8 -104,112 

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

Derivative Contracts by Maturity** 

110,905 23,824 -9,668 -32,745 -14,819 N/M 0 0 6 110,899 

Interest rate contracts ........................................... < 1 year 48,916,897 39,403,802 32,457,725 29,551,704 26,615,376 83.8 19 2,308 25,896 48,888,674

 ............................ 1-5 years 36,310,944 33,846,133 33,802,189 31,385,640 30,872,442 17.6 17 10,078 25,894 36,274,955

 ............................ > 5 years 27,875,202 24,588,177 24,684,533 23,273,618 22,518,236 23.8 41 2,694 28,253 27,844,214 

Foreign exchange contracts ................................... < 1 year 10,094,603 8,948,450 8,372,488 7,690,210 6,687,566 50.9 0 9 4,307 10,090,288

 ............................ 1-5 years 1,831,220 1,667,700 1,571,241 1,415,846 1,573,062 16.4 0 4 17 1,831,200

 ............................ > 5 years 718,390 676,071 624,415 592,897 767,427 -6.4 0 3 10 718,377 

Equity contracts ................................................... < 1 year 464,820 442,652 397,237 341,346 333,262 39.5 1 20 153 464,647

 ............................ 1-5 years 330,227 283,520 236,563 220,856 296,151 11.5 5 91 410 329,722

 ............................ > 5 years 95,900 62,916 74,332 44,858 53,988 77.6 0 0 37 95,863 

Commodity & other contracts .................................. < 1 year 278,442 280,133 271,647 235,107 496,634 -43.9 0 0 101 278,341

 ............................ 1-5 years 308,298 261,410 200,458 272,314 274,378 12.4 0 1 29 308,267

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

Risk-Based Capital: Credit Equivalent Amount 

27,617 27,273 23,931 21,581 14,486 90.6 0 0 0 27,617 

Total current exposure to tier 1 capital (%) .................................... 38.0 30.7 28.3 29.2 28.6 0.4 0.2 1.4 44.2 

Total potential future exposure to tier 1 capital (%) ........................ 115.1 113.4 106.8 97.7 99.0 0.2 0.4 0.9 134.1 

Total exposure (credit equivalent amount) to tier 1 capital (%) ......... 153.1 144.1 135.1 126.9 127.6 0.6 0.6 2.3 178.3 

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

HELD FOR TRADING 

126.0 6.0 -3.0 -25.0 -19.0 N/M 0.0 2.0 0.0 124.0 

Number of institutions reporting derivatives ................................. 158 167 155 147 147 7.5 7 44 54 53 

Total assets of institutions reporting derivatives ........................... 7,977,228 7,783,774 7,387,988 7,223,405 6,927,469 15.2 487 19,956 239,558 7,717,226 

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

Derivative Contracts by Underlying Risk Exposure 

5,082,751 4,923,927 4,770,607 4,712,089 4,435,616 14.6 379 15,964 165,978 4,900,430 

Interest rate .......................................................................... 136,068,933 120,820,776 114,003,892 104,692,154 100,300,237 35.7 8 239 29,179 136,039,507 

Foreign exchange .................................................................... 15,489,462 13,683,371 12,769,131 11,788,161 11,207,226 38.2 0 12 4,860 15,484,590 

Equity ................................................................................... 2,767,663 2,622,872 2,313,326 2,266,778 2,214,881 25.0 0 3 416 2,767,244 

Commodity & other ................................................................. 1,024,998 951,236 840,237 893,087 1,558,095 -34.2 0 0 90 1,024,907 

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

Trading Revenues: Cash & Derivative Instruments 

155,351,056 138,078,255 129,926,585 119,640,180 115,280,439 34.8 8 254 34,546 155,316,248 

Interest rate .......................................................................... 1,166 2,969 2,405 1,151 546 113.6 0 0 3 1,163 

Foreign exchange .................................................................... 2,005 1,264 1,831 1,613 1,355 48.0 0 0 9 1,997 

Equity ................................................................................... -92 1,020 1,732 1,214 1,827 -105.0 0 0 0 -92 

Commodity & other (including credit derivatives) ........................... -757 877 1,053 -111 789 -195.9 0 0 -1 -756 

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

Share of Revenue 

2,322 6,130 7,021 3,866 4,517 -48.6 0 0 11 2,311 

Trading revenues to gross revenues (%) .................................... 1.6 3.9 4.9 3.0 3.4 0.0 0.0 0.2 1.6 

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

HELD FOR PURPOSES OTHER THAN TRADING 

13.0 25.8 33.0 19.6 20.7 0.0 -0.1 1.9 13.4 

Number of institutions reporting derivatives ................................. 949 972 970 935 934 1.6 60 575 238 76 

Total assets of institutions reporting derivatives ........................... 9,300,602 8,967,425 8,637,855 8,604,877 8,227,057 13.0 4,377 249,131 735,782 8,311,312 

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

Derivative Contracts by Underlying Risk Exposure 

5,923,394 5,776,744 5,582,956 5,589,964 5,305,613 11.6 3,450 196,827 533,703 5,189,414 

Interest rate .......................................................................... 2,720,251 2,519,814 2,747,527 2,742,511 2,898,943 -6.2 108 17,238 57,086 2,645,819 

Foreign exchange .................................................................... 120,808 124,526 119,405 111,928 102,685 17.6 0 4 298 120,506 

Equity ................................................................................... 105,846 15,837 4,443 4,164 3,777 N/M 12 226 100,300 5,309 

Commodity & other ................................................................. 687 489 268 223 169 306.5 0 2 51 635 

Total notional amount .............................................................. 2,947,592 2,660,666 2,871,643 2,858,826 3,005,575 -1.9 120 17,469 157,734 2,772,269 

All line items are reported on a quarterly basis.
 

*Include spot foreign exchange contracts. All other references to foreign exchange contracts in which notional values or fair values are reported exclude spot foreign exchange contracts.
 

** Derivative contracts subject to the risk-based capital requirements for derivatives.
 

*** The reporting of credit losses on derivatives is applicable to all banks filing the FFIEC 031 report form and to those banks filing the FFIEC 041 report form that have $300 million or more in total assets.
 

FDIC QUARTERLY 12 2007, VOLUME 1, NO. 3 
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Quarterly Banking Profile 

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

(dollar figures in millions) 

3rd Quarter 

2007 

2nd Quarter 

2007 

1st Quarter 

2007 

4th 

Quarter 

2006 

3rd 

Quarter 

2006 

%Change 

06:3-07:3 

Asset Size Distribution 

Less than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater than 

$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 

123 126 126 123 119 3.4 13 48 23 39 

1-4 family residential loans .................................................................................... $1,105,601 $1,115,865 $1,079,930 $739,041 $453,900 143.6 $61 $292 $10,190 $1,095,059 

Home equity loans ................................................................................................. 9,894 10,640 9,339 8,905 9,257 6.9 0 0 248 9,646 

Credit card receivables ........................................................................................... 379,662 372,481 367,796 362,467 422,983 -10.2 0 3,328 11,204 365,130 

Auto loans ......................................................................................................... 10,433 12,547 14,132 16,263 16,781 -37.8 0 0 332 10,101 

Other consumer loans ........................................................................................... 29,386 27,396 27,737 28,673 25,753 14.1 0 7 0 29,379 

Commercial and industrial loans .............................................................................. 15,862 13,193 12,039 10,543 8,404 88.7 0 30 4,984 10,849 

All other loans, leases, and other assets* .................................................................. 184,941 162,434 150,404 144,582 135,982 36.0 1 77 799 184,065 

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

Maximum Credit Exposure by Asset Type 

1,735,779 1,714,556 1,661,376 1,310,475 1,073,059 61.8 62 3,733 27,756 1,704,229 

1-4 family residential loans .................................................................................... 6,858 6,511 6,047 6,627 4,619 48.5 20 5 44 6,788 

Home equity loans ................................................................................................. 2,336 2,420 2,368 2,332 2,358 -0.9 0 0 9 2,327 

Credit card receivables ........................................................................................... 19,120 18,711 17,685 19,182 25,084 -23.8 0 186 526 18,408 

Auto loans ......................................................................................................... 426 555 628 724 813 -47.6 0 0 15 411 

Other consumer loans ........................................................................................... 2,114 1,768 1,861 1,882 1,653 27.9 0 0 0 2,114 

Commercial and industrial loans .............................................................................. 399 314 311 348 407 -2.0 0 0 83 316 

All other loans, leases, and other assets .................................................................. 4,578 1,053 1,052 964 740 518.6 1 26 46 4,505 

Total credit exposure .............................................................................................. 35,831 31,331 29,952 32,059 35,674 0.4 21 218 724 34,869 

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

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

5,095 5,667 6,116 6,503 6,970 -26.9 0 0 0 5,095 

1-4 family residential loans .................................................................................... 2.7 2.5 2.1 3.0 2.4 0.1 0.0 8.8 2.7 

Home equity loans ................................................................................................. 0.7 0.6 0.7 0.7 0.7 0.0 0.0 1.9 0.6 

Credit card receivables ........................................................................................... 2.1 1.9 1.9 2.0 2.0 0.0 2.8 1.6 2.2 

Auto loans ........................................................................................................... 2.0 1.7 1.5 1.7 1.3 0.0 0.0 1.0 2.0 

Other consumer loans ........................................................................................... 2.8 2.8 2.4 3.0 3.0 0.0 0.0 0.0 2.8 

Commercial and industrial loans .............................................................................. 1.0 0.5 0.7 0.7 1.2 0.0 0.0 1.8 0.6 

All other loans, leases, and other assets .................................................................. 0.1 0.1 0.1 0.2 0.2 0.0 0.0 0.2 0.1 

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

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

2.3 2.1 1.9 2.4 2.0 0.1 2.5 4.3 2.3 

1-4 family residential loans .................................................................................... 1.2 1.2 1.1 1.2 0.9 0.0 0.0 17.3 1.0 

Home equity loans ................................................................................................. 0.4 0.3 0.4 0.5 0.3 0.0 0.0 1.2 0.3 

Credit card receivables ........................................................................................... 1.7 1.6 1.8 1.7 1.6 0.0 1.4 1.3 1.8 

Auto loans .......................................................................................................... 0.2 0.2 0.2 0.3 0.2 0.0 0.0 0.1 0.2 

Other consumer loans ........................................................................................... 2.1 2.1 2.0 2.1 2.1 0.0 0.0 0.0 2.1 

Commercial and industrial loans .............................................................................. 0.7 0.6 0.6 0.7 0.8 0.0 0.0 1.4 0.4 

All other loans, leases, and other assets .................................................................. 0.1 0.2 0.1 0.2 0.2 0.0 2.0 0.1 0.1 

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

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

1.2 1.2 1.1 1.2 1.1 0.0 1.3 7.2 1.1 

1-4 family residential loans .................................................................................... 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.6 0.0 

Home equity loans ................................................................................................. 0.1 0.1 0.1 0.3 0.2 0.0 0.0 1.1 0.1 

Credit card receivables ........................................................................................... 3.3 2.2 1.1 3.8 2.9 0.0 2.4 2.2 3.4 

Auto loans ........................................................................................................... 0.8 0.5 0.3 0.7 0.5 0.0 0.0 0.4 0.8 

Other consumer loans ........................................................................................... 1.1 0.7 0.4 1.5 1.2 0.0 0.0 0.0 1.1 

Commercial and industrial loans .............................................................................. 1.3 0.7 0.4 1.3 1.2 0.0 0.0 3.1 0.4 

All other loans, leases, and other assets .................................................................. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 

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

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

0.8 0.5 0.3 1.1 1.2 0.0 2.2 2.0 0.8 

Home equity loans ................................................................................................. 494 651 671 869 728 -32.1 0 0 0 494 

Credit card receivables ........................................................................................... 77,451 73,405 61,569 75,225 68,885 12.4 0 239 4,349 72,863 

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

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

6,018 2,843 2,863 2,596 2,891 108.2 0 0 974 5,044 

Home equity loans ................................................................................................. 10 10 10 10 11 -9.1 0 0 0 10 

Credit card receivables ........................................................................................... 374 327 281 322 184 103.3 0 71 303 0 

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

Assets Sold with Recourse and Not Securitized 

6 9 1 5 0 0.0 0 0 0 6 

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

Outstanding Principal Balance by Asset Type 

748 735 729 716 708 5.6 157 446 100 45 

1-4 family residential loans .................................................................................... 57,454 55,486 58,005 55,777 56,002 2.6 1,003 6,808 2,883 46,760 

Home equity, credit card receivables, auto, and other consumer loans ........................... 775 601 1,905 708 115 573.9 2 28 12 734 

Commercial and industrial loans .............................................................................. 5,302 7,708 8,198 6,668 6,781 -21.8 0 188 337 4,776 

All other loans, leases, and other assets .................................................................. 21,509 8,035 8,103 6,981 7,403 190.5 1 46 176 21,286 

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

Maximum Credit Exposure by Asset Type 

85,040 71,831 76,210 70,133 70,302 21.0 1,007 7,071 3,407 73,556 

1-4 family residential loans .................................................................................... 15,829 14,869 16,112 13,213 13,704 15.5 148 1,511 1,995 12,175 

Home equity, credit card receivables, auto, and other consumer loans ........................... 742 573 1,869 663 47 1478.7 2 5 7 728 

Commercial and industrial loans .............................................................................. 3,671 4,453 4,543 4,499 4,479 -18.0 0 169 337 3,165 

All other loans, leases, and other assets .................................................................. 6,447 2,383 2,428 2,530 2,502 157.7 1 22 89 6,335 

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

Support for Securitization Facilities Sponsored by Other Institutions 

26,689 22,278 24,952 20,904 20,732 28.7 151 1,708 2,426 22,403 

Number of institutions reporting securitization facilities sponsored by others ........................ 49 50 47 47 48 2.1 24 15 3 7 

Total credit exposure .............................................................................................. 1,477 1,375 1,348 1,135 958 54.2 7 121 100 1,249 

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

Other 

8,242 14,093 5,827 5,857 4,718 74.7 0 0 0 8,242 

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

Asset-backed commercial paper conduits 

3,647,431 3,569,529 3,494,728 3,392,129 3,072,169 18.7 7,553 61,643 120,033 3,458,202 

Credit exposure to conduits sponsored by institutions and others .................................... 22,592 22,211 21,404 20,714 19,244 17.4 2 0 112 22,478 

Unused liquidity commitments to conduits sponsored by institutions and others ............... 365,850 364,656 327,395 306,435 294,279 24.3 0 0 0 365,850 

Net servicing income (for the quarter) ........................................................................ 3,634 5,330 3,601 2,159 3,381 7.5 57 123 153 3,301 

Net securitization income (for the quarter) ................................................................... 5,642 5,437 5,051 2,407 6,832 -17.4 0 68 285 5,289 

Total credit exposure to Tier 1 capital (%)*** ............................................................... 6.5 5.7 5.9 5.8 6.1 0.7 1.6 2.5 8.3 

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

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

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

FDIC QUARTERLY 13 2007, VOLUME 1, NO.3 
Author: 

Author: 

INSURANCE FUND INDICATORS 

■ Insured Deposit Growth Increases Only Slightly 

■ DIF Reserve Ratio Rises One Basis Point to 1.22 Percent 

■ One Institution Fails During the Third Quarter 

From June 30 to September 30, total assets of the 

nation’s 8,560 FDIC-insured commercial banks and 

savings institutions increased by $446.3 billion (3.6 

percent). Total deposits, which increased by $146.0 

billion, funded about one third of this asset growth. 

Total domestic deposits increased by 0.7 percent in the 

third quarter. Domestic time deposits increased by 3.3 

percent, while other domestic interest-bearing deposits 

increased by only 0.7 percent and domestic noninterest-bearing deposits decreased by 4.5 percent. Over the 

12 months ending September 30, total domestic 

deposits increased by 4.1 percent, with domestic interest-bearing deposits rising by 5.7 percent but domestic 

noninterest-bearing deposits declining by 3.1 percent. 

Insured institutions in aggregate have reduced their 

reliance on domestic deposits steadily since the early 

1990s. Domestic deposits funded 72 percent of industry 

assets in 1992, but only fund 53 percent today. Foreign 

office deposits have funded an increasing share of assets 

over the same time period, from 7 percent in 1992 to 

11 percent today. Foreign deposits as a percent of assets 

have risen from 8.4 percent in September 2005 to 9.4 

percent at September 2006 and 11.3 percent at 

September 2007. From September 30, 2006 to 

September 30, 2007, foreign office deposits increased by 

30.5 percent. Federal Home Loan Bank (FHLB) 

advances increased by 21.8 percent over the same 

twelve-month period. In the third quarter, FHLB 

advances funded 6.1 percent of assets, up from 5.0 percent in June and 5.4 percent a year ago. 

Estimated insured deposits (including U.S. branches of 

foreign banks) increased slightly during the third quarter of 2007 (0.2 percent increase), compared to a slight 

decline (0.2 percent decrease) during the second quarter of 2007. Over the last 12 months, insured deposits 

increased by 3.5 percent. For institutions existing as of 

September 30, 2007 and June 30, 2007, insured 

deposits increased during the third quarter at 4,652 

institutions (55 percent), decreased at 3,816 institutions (45 percent), and remained unchanged at 49 

institutions. 

The Deposit Insurance Fund (DIF) increased by 1.0 

percent ($527 million) during the third quarter to 

$51,754 million (unaudited). Accrued assessment 

income added $170 million to the DIF during the third 

quarter. The fund received a $68 million increase from 

unrealized gains on available for sale securities, and 

took in $421 million (net of expenses) from interest on 

securities and other revenue. The DIF was reduced by 

$132 million in additional provisions for insurance losses. The increase in the DIF, together with nearly flat 

insured deposit growth, raised the DIF reserve ratio to 

1.22 percent on September 30, 2007, one basis point 

higher than the June ratio and equal to the reserve 

ratio of a year earlier. 

One FDIC-insured institution failed during the third 

quarter of 2007, a federal savings bank with assets of 

$2.2 billion. The loss to the DIF is estimated to be 

approximately $108 million. For the first nine months 

of 2007, two institutions with combined assets of $2.3 

billion have failed at an estimated cost of $117 million. 

There were no failures of insured institutions during the 

first nine months of the previous year. 

Author: 	 Kevin Brown, Sr. Financial Analyst 

Division of Insurance and Research, FDIC 

(202) 898-6817 

FDIC QUARTERLY	 14 2007, VOLUME 1, NO. 3 
 

 

 

 

 

Quarterly Banking Profile 

TABLE I-B. Insurance Fund Balances and Selected Indicators 

(dollar figures in millions) Deposit Insurance Fund 

3rd Quarter 

2007 

2nd Quarter 

2007 

1st Quarter 

2007 

4th Quarter 

2006 

3rd Quarter 

2006 

2nd Quarter 

2006 

1st Quarter 

2006 

4th Quarter 

2005 

3rd Quarter 

2005 

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

Changes in Fund Balance: 

$51,227 $50,745 $50,165 $49,992 $49,564 $49,193 $48,597 $48,373 $48,023 

Assessments earned............................................ 170 140 94 10 10 7 5 13 20 

Interest earned on investment securities................... 640 748 567 476 622 665 478 675 536 

Operating expenses.............................................. 243 248 239 248 237 242 224 252 227 

Provision for insurance losses................................. 132 -3 -73 49 -50 -6 -45 -19 -65 

All other income, net of expenses**.......................... 

Unrealized gain/(loss) on available-for-sale 

24 1 4 5 1 12 349 4 3 

securities.......................................................... 68 -162 81 -21 -18 -77 -57 -235 -47 

Total fund balance change..................................... 527 482 580 173 428 371 596 224 350 

Ending Fund Balance*......................................... 51,754 51,227 50,745 50,165 49,992 49,564 49,193 48,597 48,373

 Percent change from four quarters earlier............... 3.36 3.52 3.15 3.23 3.35 3.21 3.31 2.29 2.94 

Reserve Ratio (%)............................................... 1.21 1.22 1.20 1.21 1.22 1.23 1.23 1.25 1.26 

Estimated Insured Deposits ................................ 4,241,307 4,231,656 4,242,146 4,151,966 4,098,430 4,040,405 4,001,955 3,890,941 3,830,950

 Percent change from four quarters earlier............... 3.49 4.73 6.00 6.71 6.98 7.52 8.50 7.42 7.63 

Assessment Base 6,881,843 6,815,426 6,801,892 6,595,357 6,439,330 6,386,916 6,272,555 6,177,429 6,038,857

 Percent change from four quarters earlier............... 6.87 6.71 8.44 6.77 6.63 8.64 8.15 8.88 9.47 

Number of institutions reporting........................... 8,626 8,571 8,662 8,693 8,755 8,790 8,803 8,845 8,870 

DIF Reserve Ratio* 

Percent of Insured Deposits 

1.32 1.32 1.31 

1.29 1.28 

1.26 1.25 

1.23 1.23 1.22 1.21 1.20 1.21 1.22 

6/04 12/04 6/05 12/05 6/06 12/06 6/07 

TABLE II-B. Problem Institutions and Failed/Assisted Institutions 

(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................................................................................................ 

65 

$18,515 

2 

$2,252 

47 

$3,983 

0 

$0 

50 

$8,265 

0 

$0 

52 

$6,607 

0 

$0 

80 

$28,250 

4 

$166 

116 

$29,917 

3

$1,097 

136

$38,927 

$2,558 

11 

* Prior to 2006, amounts represent sum of separate BIF and SAIF amounts. 

** First Quarter 2006 includes previously escrowed revenue from SAIF-member exit fees. 

*** Through September 30. 

Deposit Insurance Fund Balance 

and Insured Deposits* 

($ Millions) 

DIF DIF-Insured 

Balance Deposits 

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 3,830,950 

12/05 48,597 3,890,941 

3/06 49,193 4,001,955 

6/06 49,564 4,040,405 

9/06 49,992 4,098,430 

12/06 50,165 4,151,966 

3/07 50,745 4,242,146 

6/07 51,227 4,231,656 

9/07 51,754 4,241,307 

FDIC QUARTERLY 15 2007, VOLUME 1, NO.3 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE III-B. Estimated FDIC-Insured Deposits by Type of Institution 

(dollar figures in millions) 

September 30, 2007 

Commercial Banks and Savings Institutions 

Number of 

Institutions 

Total 

Assets 

Domestic 

Deposits* 

Est. Insured 

Deposits 

FDIC-Insured Commercial Banks ............................................ 10,792,691 7,303 5,571,617 3,331,209 

FDIC-Supervised ............................................................... 1,842,731 4,767 1,354,199 922,436 

OCC-Supervised ............................................................... 7,492,702 1,659 3,400,698 1,920,915 

Federal Reserve-Supervised ............................................... 1,457,258 877 816,720 487,858 

FDIC-Insured Savings Institutions ............................................ 1,914,422 1,257 1,169,544 903,717

 OTS-Supervised Savings Institutions ..................................... 1,613,489 831 956,061 739,217

 FDIC-Supervised State Savings Banks ................................... 

Total Commercial Banks and 

 300,933 426 213,483 164,500 

Savings Institutions ............................................................ 

Other FDIC-Insured Institutions 

8,560 12,707,112 6,741,161 4,234,925 

U.S. Branches of Foreign Banks .............................................. 19,868 11 8,181 6,381 

Total FDIC-Insured Institutions ............................................... 8,571 12,726,980 6,749,342 4,241,307 

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

TABLE IV-B. Distribution of Institutions and Assessment Base Among Risk Categories 

Quarter Ending June 30, 2007 

(dollar figures in billions) Annual Percent of Total 

Rate in Number of Percent of Total Assessment Assessment 

Risk Category Basis Points Institutions Institutions Base Base 

I - Minimum ............................................. 

I - Middle ................................................ 

5 

5.01- 6.00 

2,931 

3,211 

34.0% 

37.2% 

3,949 

2,120 

57.9% 

31.1% 

I - Middle ................................................ 

I - Maximum ............................................. 

6.01- 6.99 

7 

1,343 

665 

15.6% 

7.7% 

436 

198 

6.4% 

2.9% 

II ......................................................... 10 413 4.8% 93 1.4% 

III ......................................................... 28 53 0.6% 5 0.1% 

IV ......................................................... 43 10 0.1% 14 0.2% 

Note: Institutions are categorized based on supervisory ratings, debt ratings and financial data as of June 30, 2007. 


Rates do not reflect the application of assessment credits. See notes to users for further information on risk categories and rates. 


FDIC QUARTERLY 16 2007, VOLUME 1, NO. 3 
Quarterly Banking Profile 

Notes To Users 

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 17 2007, VOLUME 1, NO.3 
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. 

Assessment base –assessable deposits consist of DIF deposits (deposits 

insured by the FDIC Deposit Insurance Fund) in banks’ domestic 

offices with certain adjustments. 

Assets securitized and sold – total outstanding principal balance of 

assets securitized and sold with servicing retained or other sellerprovided credit enhancements. 

Construction and development loans – includes loans for all property 

types under construction, as well as loans for land acquisition and 

development. 

Core capital – common equity capital plus noncumulative perpetual 

preferred stock plus minority interest in consolidated subsidiaries, less 

goodwill and other ineligible intangible assets. The amount of eligible 

intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations. 

Cost of funding earning assets – total interest expense paid on deposits 

and other borrowed money as a percentage of average earning assets. 

Credit enhancements – techniques whereby a company attempts to 

reduce the credit risk of its obligations. Credit enhancement may be 

provided by a third party (external credit enhancement) or by the 

originator (internal credit enhancement), and more than one type of 

enhancement may be associated with a given issuance. 

Deposit Insurance Fund (DIF) – The Bank (BIF) and Savings 

Association (SAIF) Insurance Funds were merged in 2006 by the 

Federal Deposit Insurance Reform Act to form the DIF. 

Derivatives notional amount – The notional or contractual amounts of 

derivatives represent the level of involvement in the types of derivatives transactions and are not a quantification of market risk or credit 

risk. Notional amounts represent the amounts used to calculate contractual cash flows to be exchanged. 

FDIC QUARTERLY 18 2007, VOLUME 1, NO. 3 
Quarterly Banking Profile 

Derivatives credit equivalent amount – the fair value of the derivative 

plus an additional amount for potential future credit exposure based 

on the notional amount, the remaining maturity and type of the 

contract. 

Derivatives transaction types: 

Futures and forward contracts – contracts in which the buyer agrees 

to purchase and the seller agrees to sell, at a specified future date, 

a specific quantity of an underlying variable or index at a specified price or yield. These contracts exist for a variety of variables 

or indices, (traditional agricultural or physical commodities, as 

well as currencies and interest rates). Futures contracts are standardized and are traded on organized exchanges which set limits 

on counterparty credit exposure. Forward contracts do not have 

standardized terms and are traded over the counter. 

Option contracts – contracts in which the buyer acquires the right 

to buy from or sell to another party some specified amount of an 

underlying variable or index at a stated price (strike price) during 

a period or on a specified future date, in return for compensation 

(such as a fee or premium). The seller is obligated to purchase or 

sell the variable or index at the discretion of the buyer of the contract. 

Swaps – obligations between two parties to exchange a series of 

cash flows at periodic intervals (settlement dates), for a specified 

period. The cash flows of a swap are either fixed, or determined 

for each settlement date by multiplying the quantity (notional 

principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged. 

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 ascend-


FDIC QUARTERLY 19 2007, VOLUME 1, NO.3 
ing order of supervisory concern. “Problem” institutions are those 

institutions with financial, operational, or managerial weaknesses that 

threaten their continued financial viability. Depending upon the 

degree of risk and supervisory concern, they are rated either a “4” or 

“5”. For all insured commercial banks and for insured savings banks 

for which the FDIC is the primary federal regulator, FDIC composite 

ratings are used. For all institutions whose primary federal regulator is 

the OTS, the OTS composite rating is used. 

Recourse – an arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it 

has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank’s claim on the asset. If a 

bank has no claim on an asset it has sold, then the retention of any 

credit risk is recourse. 

Reserves for losses – the allowance for loan and lease losses on a consolidated basis. 

Restructured loans and leases – loan and lease financing receivables 

with terms restructured from the original contract. Excludes restructured loans and leases that are not in compliance with the modified 

terms. 

Retained earnings – net income less cash dividends on common and 

preferred stock for the reporting period.
 

Return on assets – net income (including gains or losses on securities
 

and extraordinary items) as a percentage of average total assets. The
 

basic yardstick of bank profitability.
 

Return on equity – net income (including gains or losses on securities
 

and extraordinary items) as a percentage of average total equity capital.
 

Risk-based capital groups – definition: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) Capital * Capital * Leverage Equity 

Well-capitalized >10 and >6 and >5 — 

Adequately 

capitalized >8 and >4 and >4 — 

Undercapitalized >6 and >3 and >3 — 

Significantly 

undercapitalized <6 or <3 or <3 and >2 

Critically 

undercapitalized — — — <2 

*As a percentage of risk-weighted assets. 

Risk Categories and Assessment Rate Schedule – The current risk categories and assessment rate schedule became effective January 1, 2007. 

Capital ratios and supervisory ratings distinguish one risk category 

from another. The following table shows the relationship of risk categories (I, II, III, IV) to capital and supervisory groups as well as the 

Supervisory Group 

Capital Group 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

assessment rates (in basis points) for each risk category. Supervisory 

Group A generally includes institutions with CAMELS composite ratings of 1 or 2; Supervisory Group B generally includes institutions 

with a CAMELS composite rating of 3; and Supervisory Group C 

generally includes institutions with CAMELS composite ratings of 4 

or 5. For purposes of risk-based assessment capital groups, undercapitalized includes institutions that are significantly or critically undercapitalized. 

Assessment rates are 3 basis points above the base rate schedule. The 

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

schedule without notice and comment, provided that any single 

adjustment from one quarter to the next cannot move rates more 

than 3 basis points. 

For most institutions in Risk Category I, the assessment rate assigned 

will be based on a combination of financial ratios and CAMELS component ratings. 

For large institutions in Risk Category I (generally those with at least 

$10 billion in assets) that have long-term debt issuer ratings, assessment rates will be determined by weighting CAMELS component ratings 50 percent and long-term debt issuer ratings 50 percent. For all 

large Risk Category I institutions, additional risk factors will be considered to determine whether assessment rates should be adjusted. 

This additional information includes market data, financial performance measures, considerations of the ability of an institution to withstand financial stress, and loss severity indicators. Any adjustment will 

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

Beginning in 2007, each institution is assigned a risk-based rate for a 

quarterly assessment period near the end of the quarter following the 

assessment period. Payment will generally be due on the 30th day of 

the last month of the quarter following the assessment period. 

Supervisory rating changes will be effective for assessment purposes as 

of the examination transmittal date. For institutions with long-term 

debt issuer ratings, changes in ratings will be effective for assessment 

purposes as of the date the change was announced. 

Risk-weighted assets – assets adjusted for risk-based capital definitions 

which include on-balance-sheet as well as off-balance-sheet items 

multiplied by risk-weights that range from zero to 100 percent. A 

conversion factor is used to assign a balance sheet equivalent amount 

for selected off-balance-sheet accounts. 

Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity”, 

which are reported at amortized cost (book value), and securities designated as “available-for-sale”, reported at fair (market) value. 

Securities gains (losses) – realized gains (losses) on held-to-maturity and 

available-for-sale securities, before adjustments for income taxes. 

Thrift Financial Report (TFR) filers also include gains (losses) on the 

sales of assets held for sale. 

Seller’s interest in institution’s own securitizations – the reporting bank’s 

ownership interest in loans and other assets that have been securitized, except an interest that is a form of recourse or other seller-provided credit enhancement. Seller’s interests differ from the securities 

issued to investors by the securitization structure. The principal 

amount of a seller’s interest is generally equal to the total principal 

amount of the pool of assets included in the securitization structure 

less the principal amount of those assets attributable to investors, i.e., 

in the form of securities issued to investors. 

Subchapter S Corporation – A Subchapter S corporation is treated as a 

pass-through entity, similar to a partnership, for federal income tax 

purposes. It is generally not subject to any federal income taxes at the 

FDIC QUARTERLY 20 2007, VOLUME 1, NO. 3 
Quarterly Banking Profile 

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.3