FDIC Quarterly 1 2010, Volume 4, No. 4

Quarterly Banking Profile Third Quarter 2010

Net Income Continues to Improve

Resilient revenues and improving asset quality 

remained a positive combination for insured institution 

earnings in the third quarter. Net income for the 7,760 

insured commercial banks and savings institutions 

reporting quarterly financial results totaled $14.5 

billion, a considerable improvement over the $2 billion 

reported a year ago. Third quarter net income was 

below the $17.7 billion and $21.4 billion reported in 

the first and second quarters of this year, respectively, 

but the shortfall was attributable to a $10.1 billion 

quarterly net loss at one large institution that had a 

$10.4 billion charge for goodwill impairment. Absent 

this loss, third quarter earnings would have represented 

a three-year high. Almost two out of every three institutions (63.3 percent) reported higher net income than 

a year earlier, and fewer than one in five (18.9 percent) 

was unprofitable. This is the lowest percentage of 

unprofitable institutions since second quarter 2008. 

A year ago, more than 27 percent of all institutions 

reported negative net income.

Quarterly Provisions Are Lowest Since 2007

Provisions for loan losses totaled $34.9 billion, the 

lowest quarterly amount since fourth quarter 2007 and 

$28 billion (44.5 percent) less than insured institutions 

set aside a year earlier. Other contributions to the yearover-year improvement in earnings came from net 

interest income, which increased by $8.1 billion (8.1 

percent), and realized gains on securities and other 

assets, which totaled $3.2 billion in the quarter, a 

$7.3 billion improvement over the $4.1 billion in realized losses reported a year earlier. The improvement in 

net income was limited by higher noninterest expenses, 

which were $14.8 billion (16 percent) more than a year 

earlier and included the large goodwill impairment 

charge. Increased income taxes (up $11.3 billion) also 

reduced reported earnings, as did lower noninterest 

income, which was $4.5 billion (7.2 percent) below the 

level of a year ago. The year-over-year decline in noninterest income was led by a $2.9 billion reduction in 

servicing fee income, a $2.2 billion decline in service 

■ Year-Over-Year Earnings Improve for Fifth Consecutive Quarter

■ Net Income Totals $14.5 Billion, Up from $2 Billion a Year Earlier

■ Lower Loan-Loss Provisions Remain Key to Earnings Gains

■ Asset Quality Trends Continued to Improve

■ Industry Assets Increase by $163 Billion

INSURED INSTITUTION PERFORMANCE

Earnings Had Strong Year-Over-Year Improvement

Securities and Other Gains/Losses, Net

Net Operating Income

-40

-30

-20

-10

0

10

20

30

40

50

60

36.9 38.0 38.0 35.3 35.6 36.8

28.7

0.5

19.3

4.8 0.9

-37.8

5.5

-4.4

2006 2007 2008 2009

2.0

-1.8

2010

17.7

21.4

14.5

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

Billions of Dollars

Chart 1 Chart 2

Provisions Were $28 Billion Lower than a Year Ago

Year-Over-Year Change in Quarterly Earnings

(Billions of Dollars)

Positive Factors

Negative Factors

50

45

40

35

30

25

20

15

10

5

0

$4.5

$14.8

$28.0

$11.3

$8.1

$7.3

Increase in 

Income Taxes

Increase in Net

Interest Income

Increase in Realized

Gains on Securities

Increase in 

Noninterest Expense

Decline in

Noninterest Income

Decline in Loan

Loss Provisions
FDIC Quarterly 2 2010, Volume 4, No. 4

Chart 4

Community Bank Margins Continue to Improve

Assets < $1 Billion

Assets > $1 Billion

3.83

3.74

Quarterly Net Interest Margin

(Percent)

2.5

3.0

3.5

4.0

4.5

1234123412341234123412 3

2005 2006 2007 2008 2009 2010

charges on deposit accounts, a $1.8 billion drop in 

trading revenue, and a $1 billion decline in securitization income. Much of the year-over-year increase in net 

interest income and the declines in servicing and securitization income reflect the effect of new accounting 

rules on financial reporting that became effective in 

2010.1 Quarterly earnings have improved year-over-year 

in each of the past five quarters. Loss provisions have 

declined year-over-year in each of the past four quarters.

Charge-Offs Are Lower in Most Loan Categories

For the second quarter in a row, net charge-offs 

(NCOs) were lower than in both the previous quarter 

and the year-earlier quarter. Third quarter NCOs 

totaled $42.9 billion, compared to $49.1 billion in the 

second quarter and $50.9 billion in the third quarter of 

2009. Prior to the past two quarters of improvement, 

quarterly NCOs had increased year-over-year for 13 

consecutive quarters. NCOs for most major loan categories declined year-over-year in the third quarter. 

Commercial and industrial (C&I) loan NCOs were 

$3.6 billion (41.8 percent) lower than a year earlier, 

while one-to-four family residential mortgage loan 

NCOs were $3.0 billion (31.6 percent) less. Real estate 

construction and development (C&D) loan NCOs 

were down by $2.5 billion (32.4 percent), and NCOs 

of non-credit card consumer loans were $2.0 billion 

1

 See FASB Statements 166 & 177 in Notes to Users.

(41.1 percent) lower. Among the loan categories with 

year-over-year increases in NCOs, credit card NCOs 

were up by $4.3 billion (43.3 percent), as a result of the 

application of FASB 166 and 167, while NCOs of real 

estate loans secured by nonfarm nonresidential properties were $1.1 billion (46.2 percent) higher.2

Noncurrent Loan Balances Decline

The amount of loans and leases that were noncurrent 

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

for a second consecutive quarter. Noncurrent balances 

declined by $8.3 billion (2.1 percent) in the third quarter, after an $18.9 billion (4.6 percent) decline in the 

second quarter. Before these two quarterly declines, the 

industry’s noncurrent loan balances had risen for 16 

consecutive quarters. As was the case with NCOs, 

noncurrent balances for most major loan categories 

declined. The largest declines occurred in C&D loans 

(down $5.7 billion, or 8.9 percent in the quarter), credit 

cards (down $2 billion, or 11.2 percent), one-to-four 

family residential mortgages (down $1.7 billion, or 0.9 

percent), and C&I loans (down $1.5 billion, or 4.3 

percent). Noncurrent balances increased in multifamily 

residential real estate loans (up $1.2 billion, or 13.6 

percent) and in nonfarm nonresidential real estate 

loans (up $604 million, or 1.3 percent).

2

 Ibid.

Chart 3

Loss Provisions Account for a Falling Share

of Industry Revenue Billions of Dollars

0

20

40

60

80

100

120

140

160

180 Quarterly Loan-Loss

Provision

Quarterly Net Operating Revenue*

2005 2006 2007 2008 2009 2010

* Net operating revenue = net interest income + noninterest income

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3
FDIC Quarterly 3 2010, Volume 4, No. 4

Quarterly Banking Profile

Securities Portfolios Drive Growth in 

Industry Assets

Total assets of insured institutions increased by $163 

billion (1.2 percent) during the quarter. Notwithstanding the increase in reported assets in the first quarter 

that reflected new financial reporting rules, this is the 

first real growth in industry assets since fourth quarter 

2008. Interest-bearing assets increased by $154.8 billion 

(1.4 percent), as investment securities portfolios rose by 

$113.7 billion (4.5 percent). Assets held in trading 

accounts were up by $86.9 billion (12.8 percent). 

Reported loan balances declined for the eighth time in 

the past nine quarters. Total loans and leases fell by 

$6.8 billion (0.1 percent), as C&D loans declined by 

$28.9 billion (7.6 percent) and credit card balances 

and other loans to individuals fell by $16.1 billion 

(1.2 percent). Loans to depository institutions grew 

strongly during the quarter, increasing by $27.8 billion 

(36.4 percent). C&I loans increased for the first time 

in eight quarters, rising by $4.9 billion (0.4 percent). 

One-to-four family residential mortgages increased 

for the first time in six quarters, rising by $5.3 billion 

(0.3 percent). Unused loan commitments were up by 

$34.1 billion (0.6 percent). Indications of credit risk in 

industry assets continued to fall in the third quarter. 

The ratio of risk-weighted assets (used in calculating 

risk-based capital ratios) to total assets declined from 

69.1 percent to 68.3 percent during the quarter, as total 

risk-weighted assets increased by only $2.8 billion 

(0.03 percent). This is the lowest level for this ratio 

since first quarter 1995. 

Lower Provisions Lead to a Fall in Reserves

The industry’s reserves for loan losses declined for a 

second consecutive quarter, falling by $9.6 billion 

(3.8 percent), as NCOs took $42.9 billion out of 

reserves while loss provisions added only $34.9 billion. 

Almost 60 percent of insured institutions increased 

their reserves during the quarter, but the 34.4 percent 

that reduced their reserves included nine of the ten 

largest banks, and 54 of the 100 largest. The reductions 

in reserves contributed to the industry’s coverage ratio 

of reserves to noncurrent loans falling from 65.0 percent 

to 63.9 percent during the quarter. 

Leverage Capital Posts Strong Growth

Equity capital increased by $18.4 billion (1.2 percent) 

during the quarter, compared to a $27.2 billion (1.9 

percent) increase in the second quarter. The smaller 

increase in equity in the third quarter reflected the 

$10.4 billion write-down of goodwill. Tier 1 leverage 

capital, which does not include goodwill, increased by 

$24 billion (2.1 percent). This is the largest quarterly 

increase since first quarter 2009, when the Troubled 

Asset Relief Program (TARP) contributed to a $67.6 

billion surge in leverage capital. Almost three out of 

four institutions (74.5 percent) increased both their 

leverage capital and total risk-based capital during 

the quarter. Insured institutions paid $13.3 billion in 

dividends in the third quarter, compared to $20.1 

billion a year earlier.

Chart 5

Asset Quality Indicators Exhibit Further Improvement

Billions of Dollars

-20

0

20

40

60

80

100

12341234123412 3

Quarterly Change in Noncurrent Loans

Quarterly Net Charge-Offs

2007 2008 2009 2010

Chart 6

Reductions in Loss Reserves Lead to Erosion in

Coverage of Bad Loans Coverage Ratio

(Percent)

0

20

40

60

80

100

120

140

160

180

200

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

0

1

2

3

4

5

6

Coverage Ratio 

(Reserves as a % of Noncurrent Loans)

Noncurrent Rate

(Noncurrent Loans as a % of Total Loans)

58.66%

(6/30/91)

3.79%

(6/30/91)

5.43%

(12/31/09)

57.70%

(12/31/09)

Noncurrent Loan Rate

(Percent)
FDIC Quarterly 4 2010, Volume 4, No. 4

The Number of “Problem” Institutions Continues 

to Rise

The number of insured commercial banks and savings 

institutions reporting quarterly financial results fell from 

7,830 in the second quarter to 7,760 in the third quarter. Five new reporting institutions were added during 

the quarter, while 30 institutions were absorbed into 

other charters through mergers. Forty-one institutions 

failed in the third quarter, bringing the total number of 

failures for the first nine months of 2010 to 127. The 

number of insured institutions on the FDIC’s “Problem 

List” increased from 829 to 860 during the quarter. This 

is the largest number of “problem” institutions since 

March 31, 1993, when there were 928. Total assets of 

“problem” institutions declined for the second quarter 

in a row, from $403.2 billion to $379.2 billion. The 

number of employees (full-time equivalent) increased 

for a second consecutive quarter, after falling in each 

of the previous 12 quarters. The 0.4 percent (8,195) 

increase lifted the industry’s total employment to 

2.04 million, which is still 8.2 percent below the peak 

of 2.22 million reported in first quarter 2007.

Author: Ross Waldrop, Sr. Banking Analyst

Division of Insurance and Research

(202) 898-3951

Deposits Increase by 1.5 Percent

Deposits funded 81 percent ($132.6 billion) of the 

growth in assets during the quarter. Deposits in foreign 

offices increased by $62.3 billion (4.2 percent), while 

domestic office deposits rose by $70.3 billion (0.9 

percent). Most of the growth in domestic deposits 

occurred in large denomination noninterest-bearing 

deposits. Interest-bearing deposits in domestic offices 

increased by only $9.5 billion (0.2 percent), while 

estimated insured deposits fell by $15.9 billion (0.3 

percent). Time deposits fell for the seventh consecutive 

quarter, declining by $73.4 billion (3.4 percent). 

Nondeposit liabilities increased by only $12 billion 

(0.5 percent) during the quarter. Federal Home Loan 

Bank (FHLB) advances declined by $43 billion (9.7 

percent), marking the eighth consecutive quarter that 

FHLB advances have fallen. During this period, total 

balances declined by $509.1 billion (55.8 percent).

Chart 7

Net Decline in Loans Was Smallest in Two Years

43.4

188.9

237.3

202.6

61.4

28.1

-6.3

-116.2

-139.6

-108.6

-210.3

-133.2

220.9

-106.6

-6.8

-250

-200

-150

-100

-50

0

50

100

150

200

250

300

12341234123412 3

Quarterly Change in Reported Total Loans Outstanding

(Billions of Dollars)

2007 2008 2009 2010

Chart 8

The Number of “Problem” Institutions Is Highest

Since 1993

Number of Institutions

48 50 47 50 53 61 65 76 90 117

171

252

305

416

552

702

775

829860

0

100

200

300

400

500

600

700

800

900

1234123412341234123

2006 2007 2008 2009 2010
FDIC Quarterly 5 2010, Volume 4, No. 4

Quarterly Banking Profile

TABLE I-A. Selected Indicators, All FDIC-Insured Institutions* 2010** 2009** 2009 2008 2007 2006 2005

Return on assets (%)������������������������������������������������������������������������������������������������������ 0.56 0.09 0.07 0.03 0.81 1.

Return on equity (%)������������������������������������������������������������������������������������������������������� 5.00 0.84 0.70 0.35 7.75 12.3

Core capital (leverage) ratio (%) ������������������������������������������������������������������������������������ 8.99 8.54 8.63 7.47 7.97 8.

Noncurrent assets plus other real estate owned to assets (%) ������������������������������������ 3.25 3.08 3.36 1.91 0.95 0.

Net charge-offs to loans (%) ������������������������������������������������������������������������������������������ 2.59 2.38 2.50 1.29 0.59 0.

Asset growth rate (%) ����������������������������������������������������������������������������������������������������� 1.03 -2.40 -5.30 6.19 9.88 9.

Net interest margin (%)��������������������������������������������������������������������������������������������������� 3.78 3.45 3.47 3.16 3.29 3.

Net operating income growth (%)����������������������������������������������������������������������������������� 291.33 -64.54 50.07 -90.71 -27.59 8.5

Number of institutions reporting������������������������������������������������������������������������������������� 7,760 8,099 8,012 8,305 8,534 8,680 8,833

Commercial banks��������������������������������������������������������������������������������������������������� 6,622 6,911 6,839 7,086 7,283 7,401 7,526

Savings institutions ������������������������������������������������������������������������������������������������� 1,138 1,188 1,173 1,219 1,251 1,279 1,307

Percentage of unprofitable institutions (%)�������������������������������������������������������������������� 20.44 28.74 30.75 24.89 12.09 7.

Number of problem institutions �������������������������������������������������������������������������������������� 860 552 702 252 76 50 52

Assets of problem institutions (in billions) ��������������������������������������������������������������������� $379 $346 $403 $159 $22 $8 $7

Number of failed institutions������������������������������������������������������������������������������������������� 127 95 140 25 3 0 0

Number of assisted institutions�������������������������������������������������������������������������������������� 0 8 8 5 0 0 0

* Excludes insured branches of foreign banks (IBAs)

** Through September 30, ratios annualized where appropriate. Asset growth rates are for 12 months ending September 3

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

(dollar figures in millions) 3rd Quarter 

2010

2nd Quarter 

2010

3rd Quarter 

2009

%Change 

09Q3-10Q3

Number of institutions reporting������������������������������������������������������������������������������������� 7,760 7,830 8,099 -4.

Total employees (full-time equivalent)��������������������������������������������������������������������������� 2,042,030 2,033,835 2,069,470 -1.

CONDITION DATA

Total assets��������������������������������������������������������������������������������������������������������������������� $13,383,291 $13,220,319 $13,246,471 1.

Loans secured by real estate ��������������������������������������������������������������������������������� 4,302,273 4,337,167 4,527,197 -5.

 1-4 Family residential mortgages �������������������������������������������������������������������� 1,880,441 1,875,131 1,928,224 -2.

 Nonfarm nonresidential ����������������������������������������������������������������������������������� 1,072,833 1,081,602 1,090,087 -1.

 Construction and development������������������������������������������������������������������������ 353,827 382,771 493,039 -28.

 Home equity lines��������������������������������������������������������������������������������������������� 647,947 654,064 667,473 -2.

Commercial & industrial loans �������������������������������������������������������������������������������� 1,174,655 1,169,737 1,273,927 -7.

Loans to individuals������������������������������������������������������������������������������������������������� 1,328,944 1,345,052 1,040,987 27.

 Credit cards ������������������������������������������������������������������������������������������������������ 683,911 692,665 392,971 74.

Farm loans �������������������������������������������������������������������������������������������������������������� 58,893 58,269 60,019 -1.

Other loans & leases����������������������������������������������������������������������������������������������� 526,595 488,635 515,478 2.

Less: Unearned income ������������������������������������������������������������������������������������������ 2,125 2,794 2,613 -18.

Total loans & leases ������������������������������������������������������������������������������������������������ 7,389,234 7,396,065 7,414,995 -0.

Less: Reserve for losses����������������������������������������������������������������������������������������� 241,861 251,419 220,528 9.

Net loans and leases����������������������������������������������������������������������������������������������� 7,147,373 7,144,646 7,194,467 -0.

Securities����������������������������������������������������������������������������������������������������������������� 2,641,607 2,527,875 2,396,676 10.

Other real estate owned������������������������������������������������������������������������������������������ 53,194 49,536 37,142 43.

Goodwill and other intangibles ������������������������������������������������������������������������������� 394,096 409,841 424,684 -7.

All other assets�������������������������������������������������������������������������������������������������������� 3,147,021 3,088,421 3,193,502 -1.

Total liabilities and capital ���������������������������������������������������������������������������������������������� 13,383,291 13,220,319 13,246,471 1.

Deposits������������������������������������������������������������������������������������������������������������������� 9,273,623 9,140,981 9,101,076 1.

 Domestic office deposits���������������������������������������������������������������������������������� 7,738,035 7,667,696 7,553,270 2.

 Foreign office deposits������������������������������������������������������������������������������������� 1,535,588 1,473,285 1,547,805 -0.

Other borrowed funds ��������������������������������������������������������������������������������������������� 1,866,191 1,911,857 1,997,430 -6.

Subordinated debt��������������������������������������������������������������������������������������������������� 150,823 150,986 161,256 -6.

All other liabilities ���������������������������������������������������������������������������������������������������� 568,094 510,236 524,078 8.

Total equity capital (includes minority interests)���������������������������������������������������� 1,524,561 1,506,258 1,462,631 4.

 Bank equity capital������������������������������������������������������������������������������������������� 1,505,516 1,487,095 1,443,159 4.

Loans and leases 30-89 days past due������������������������������������������������������������������������� 124,110 124,828 142,807 -13.

Noncurrent loans and leases ����������������������������������������������������������������������������������������� 378,342 386,612 367,641 2.

Restructured loans and leases �������������������������������������������������������������������������������������� 80,270 71,968 50,063 60.

Mortgage-backed securities ������������������������������������������������������������������������������������������ 1,439,964 1,381,196 1,350,441 6.

Earning assets���������������������������������������������������������������������������������������������������������������� 11,546,575 11,391,762 11,408,682 1.

FHLB Advances�������������������������������������������������������������������������������������������������������������� 402,425 445,416 575,700 -30.

Unused loan commitments��������������������������������������������������������������������������������������������� 6,041,482 6,007,390 6,125,678 -1.

Trust assets��������������������������������������������������������������������������������������������������������������������� 18,591,198 17,606,465 18,380,940 1.

Assets securitized and sold***��������������������������������������������������������������������������������������� 1,013,180 1,411,792 1,863,994 -45.

Notional amount of derivatives***���������������������������������������������������������������������������������� 236,386,455 225,433,410 211,694,352 11.

INCOME DATA

First Three Qtrs 

2010

First Three Qtrs 

2009 %Change

3rd Quarter 

2010

3rd Quarter 

2009

%Change 

09Q3-10Q3

Total interest income ������������������������������������������������������������������� $405,787 $412,575 -1.7 $133,472 $134,211 -0

Total interest expense ����������������������������������������������������������������� 82,308 115,293 -28.6 26,010 34,807 -25

Net interest income �������������������������������������������������������������� 323,479 297,282 8.8 107,462 99,405 8

Provision for loan and lease losses �������������������������������������������� 125,462 188,982 -33.6 34,891 62,855 -44

Total noninterest income������������������������������������������������������������� 180,429 199,423 -9.5 58,207 62,715 -7

Total noninterest expense ����������������������������������������������������������� 299,854 288,255 4.0 107,631 92,818 16

Securities gains (losses)������������������������������������������������������������� 6,900 -1,589 N/M 3,191 -4,102 N/M

Applicable income taxes ������������������������������������������������������������� 29,257 4,876 500.1 11,346 80 N/

Extraordinary gains, net�������������������������������������������������������������� -510 -3,625 N/M -330 31 N/M

Total net income (includes minority interests)��������������������� 55,726 9,379 494.2 14,661 2,296 538

 Bank net income������������������������������������������������������������ 55,223 8,712 533.9 14,532 2,039 612

Net charge-offs���������������������������������������������������������������������������� 143,164 136,027 5.3 42,863 50,928 -15

Cash dividends ���������������������������������������������������������������������������� 30,611 33,466 -8.5 13,301 20,094 -33

Retained earnings ����������������������������������������������������������������������� 24,612 -24,753 N/M 1,230 -18,055 N/M

Net operating income����������������������������������������������������������� 50,935 13,016 291.3 12,385 4,360 184

*** Call Report filers only. N/M - Not Meaningf
FDIC Quarterly 6 2010, Volume 4, No. 4

TABLE III-A. Third Quarter 2010, All FDIC-Insured Institutions

Asset Concentration Groups*

Third Qu

(The way it is...)

All Insured 

Institutions

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

Number of institutions reporting����������������������� 7,760 22 5 1,583 4,171 723 82 320 790 64

Commercial banks������������������������������������� 6,622 18 5 1,579 3,719 188 65 292 706 50

Savings institutions ����������������������������������� 1,138 4 0 4 452 535 17 28 84 14

Total assets (in billions)������������������������������������ $13,383.3 $705.0 $3,278.2 $194.0 $4,442.1 $789.3 $103.9 $44.5 $131.

Commercial banks������������������������������������� 12,130.3 679.7 3,278.2 193.4 3,968.9 218.3 55.3 39.0 109

Savings institutions ����������������������������������� 1,252.9 25.3 0.0 0.5 473.2 571.1 48.6 5.5 

Total deposits (in billions)��������������������������������� 9,273.6 281.9 2,085.6 159.4 3,362.3 540.0 87.2 34.3 109

Commercial banks������������������������������������� 8,372.9 266.8 2,085.6 159.0 3,036.2 120.9 44.2 30.4 91

Savings institutions ����������������������������������� 900.7 15.1 0.0 0.4 326.1 419.1 43.0 3.9

Bank net income (in millions) ��������������������������� 14,532 -6,852 5,037 525 4,049 1,400 415 213 292 9,455

Commercial banks������������������������������������� 12,297 -7,152 5,037 524 3,412 562 256 165 281 9,212

Savings institutions ����������������������������������� 2,235 299 0 1 637 838 159 47 10 243

Performance Ratios (annualized, %

Yield on earning assets������������������������������������ 4.66 12.70 3.33 5.28 4.90 4.48 5.69 3.69

Cost of funding earning assets ������������������������ 0.91 1.35 0.64 1.28 1.10 1.36 1.22 0.93

Net interest margin������������������������������������ 3.75 11.35 2.69 4.00 3.80 3.12 4.47 2.76

Noninterest income to assets��������������������������� 1.75 2.63 1.89 0.68 1.39 0.89 2.26 6.54

Noninterest expense to assets������������������������� 3.24 10.13 2.83 2.67 3.06 1.99 2.87 7.02

Loan and lease loss provision to assets���������� 1.05 5.24 0.52 0.46 1.20 0.78 1.16 0.21

Net operating income to assets ����������������������� 0.37 -3.92 0.61 1.06 0.29 0.64 1.63 1.48

Pretax return on assets ������������������������������������ 0.78 -2.87 0.84 1.26 0.57 1.11 2.46 2.22

Return on assets����������������������������������������������� 0.44 -3.85 0.63 1.09 0.37 0.71 1.63 1.94

Return on equity ����������������������������������������������� 3.88 -23.73 6.88 9.61 3.24 7.06 15.39 11.60

Net charge-offs to loans and leases���������������� 2.32 8.79 1.85 0.56 1.95 1.12 1.96 0.98

Loan and lease loss provision to 

net charge-offs ������������������������������������������ 81.40 70.72 80.82 125.26 90.76 116.77 79.37 78.30 11

Efficiency ratio �������������������������������������������������� 57.14 32.22 67.38 60.83 62.97 51.84 43.85 77.21 6

% of unprofitable institutions���������������������������� 18.90 13.64 0.00 7.20 26.76 13.83 4.88 13.75 

% of institutions with earnings gains���������������� 63.29 81.82 60.00 61.84 64.25 68.05 70.73 50.00 6

Structural Changes

New charters ��������������������������������������������� 5 0 0 0 3 1 0 1 0 0

Institutions absorbed by mergers ������������� 30 0 0 6 17 1 0 0 3 3

Failed institutions �������������������������������������� 41 0 0 1 36 2 1 0 1 0

PRIOR Third Q

(The way it was...)

Return on assets (%)������������������������������� 2009 0.06 0.34 -0.04 0.93 -0.31 0.26 0.20 1.03

������������������������������������� 2007 0.92 4.07 0.69 1.30 0.98 0.31 1.17 2.20

������������������������������������� 2005 1.31 3.16 1.02 1.33 1.39 1.03 1.76 1.78

Net charge-offs to loans & leases (%) ���� 2009 2.72 10.67 3.18 0.60 2.13 1.59 2.64 0.80

������������������������������������� 2007 0.57 3.98 0.77 0.26 0.32 0.42 1.04 0.32

������������������������������������� 2005 0.51 4.28 1.19 0.16 0.23 0.10 1.39 0.18

* See Table IV-A (page 8) for explanations
FDIC Quarterly 7 2010, Volume 4, No. 4

Quarterly Banking Profile

TABLE III-A. Third Quarter 2010, All FDIC-Insured Institutions

Asset Size Distribution Geographic Regions

Third QU

(The way it is...)

All Insured 

Institutions

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

Number of institutions reporting����������������������������� 7,760 2,681 4,414 556 109 960 1,041 1,609 1,841 1,637 672

Commercial banks������������������������������������������� 6,622 2,383 3,731 421 87 502 921 1,326 1,743 1,518 612

Savings institutions ����������������������������������������� 1,138 298 683 135 22 458 120 283 98 119 60

Total assets (in billions)������������������������������������������ $13,383.3 $151.1 $1,316.0 $1,400.9 $10,515.4 $2,734.6 $2,957.2 $2,948.1 $1,649.6 $788

Commercial banks������������������������������������������� 12,130.3 134.7 1,079.5 1,068.6 9,847.6 2,065.5 2,830.6 2,820.4 1,600.9 69

Savings institutions ����������������������������������������� 1,252.9 16.4 236.5 332.2 667.8 669.2 126.5 127.8 48.7

Total deposits (in billions)��������������������������������������� 9,273.6 126.5 1,082.6 1,071.6 6,993.0 1,793.8 2,105.2 1,976.5 1,199.8 62

Commercial banks������������������������������������������� 8,372.9 113.6 896.3 820.7 6,542.4 1,326.4 2,013.3 1,881.0 1,162.8 55

Savings institutions ����������������������������������������� 900.7 12.9 186.3 250.9 450.6 467.4 91.9 95.5 37.0

Bank net income (in millions) ��������������������������������� 14,532 162 1,310 1,003 12,057 -5,198 5,256 4,542 4,114 1,576 4,242

Commercial banks������������������������������������������� 12,297 171 1,134 628 10,364 -6,289 5,238 4,453 4,060 1,356 3,479

Savings institutions ����������������������������������������� 2,235 -8 176 375 1,692 1,090 18 89 55 220 763

Performance Ratios (annualized, %

Yield on earning assets������������������������������������������ 4.66 5.23 5.16 4.90 4.54 5.33 4.29 3.82 5.7

Cost of funding earning assets ������������������������������ 0.91 1.27 1.35 1.24 0.80 1.07 0.87 0.76 0.8

Net interest margin������������������������������������������ 3.75 3.96 3.82 3.66 3.75 4.26 3.41 3.05 4.9

Noninterest income to assets��������������������������������� 1.75 1.30 0.99 1.31 1.91 1.49 1.77 1.92 2.2

Noninterest expense to assets������������������������������� 3.24 3.87 3.19 2.96 3.27 4.31 2.78 2.98 3.4

Loan and lease loss provision to assets���������������� 1.05 0.56 0.81 1.14 1.07 1.30 0.99 0.78 1.5

Net operating income to assets ����������������������������� 0.37 0.37 0.31 0.22 0.40 -0.86 0.57 0.59 1.0

Pretax return on assets ������������������������������������������ 0.78 0.54 0.58 0.60 0.83 -0.34 1.05 0.83 1.5

Return on assets����������������������������������������������������� 0.44 0.43 0.40 0.29 0.46 -0.77 0.71 0.63 1.0

Return on equity ����������������������������������������������������� 3.88 3.54 3.88 2.57 4.06 -5.95 6.17 6.86 8.6

Net charge-offs to loans and leases���������������������� 2.32 0.85 1.11 1.75 2.63 2.98 2.30 1.95 2.6

Loan and lease loss provision to net charge-offs�� 81.40 106.32 110.12 101.99 77.14 78.92 76.81 82.25 84.86 1

Efficiency ratio �������������������������������������������������������� 57.14 78.61 70.61 61.55 54.82 51.88 58.32 64.62 50.21 

% of unprofitable institutions���������������������������������� 18.90 19.58 18.28 21.76 12.84 13.96 38.71 17.09 13.31 

% of institutions with earnings gains���������������������� 63.29 59.98 64.50 66.55 78.90 70.52 58.69 66.63 63.23 

Structural Changes

New charters ��������������������������������������������������� 5 1 1 2 1 1 1 1 0 1 1

Institutions absorbed by mergers ������������������� 30 17 9 3 1 7 3 4 8 6 2

Failed institutions �������������������������������������������� 41 8 32 1 0 4 19 6 2 1 9

PRIOR Third Q

(The way it was...)

Return on assets (%)������������������������������������� 2009 0.06 0.11 -0.10 -0.51 0.17 0.05 -0.18 0.24 0.85

��������������������������������������������2007 0.92 0.78 1.03 1.18 0.87 0.89 0.75 0.90 1.6

��������������������������������������������2005 1.31 1.08 1.27 1.34 1.32 1.24 1.35 1.08 1.7

Net charge-offs to loans & leases (%) ���������� 2009 2.72 0.89 1.27 2.15 3.10 3.07 2.70 2.59 2.5

��������������������������������������������2007 0.57 0.26 0.24 0.42 0.66 0.92 0.29 0.44 0.7

��������������������������������������������2005 0.51 0.16 0.18 0.23 0.64 0.97 0.27 0.29 0.5

* See Table IV-A (page 9) for explanations
FDIC Quarterly 8 2010, Volume 4, No. 4

TABLE IV-A. First Three Quarters 2010, All FDIC-Insured Institutions

Asset Concentration Groups*

First Three

(The way it is...)

All Insured 

Institutions

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

Number of institutions reporting����������������������������������������� 7,760 22 5 1,583 4,171 723 82 320 790 64

Commercial banks������������������������������������������������������� 6,622 18 5 1,579 3,719 188 65 292 706 50

Savings institutions ����������������������������������������������������� 1,138 4 0 4 452 535 17 28 84 14

Total assets (in billions)������������������������������������������������������ $13,383.3 $705.0 $3,278.2 $194.0 $4,442.1 $789.3 $103.9 $44.5 $131.

Commercial banks������������������������������������������������������� 12,130.3 679.7 3,278.2 193.4 3,968.9 218.3 55.3 39.0 109

Savings institutions ����������������������������������������������������� 1,252.9 25.3 0.0 0.5 473.2 571.1 48.6 5.5 

Total deposits (in billions)��������������������������������������������������� 9,273.6 281.9 2,085.6 159.4 3,362.3 540.0 87.2 34.3 109

Commercial banks������������������������������������������������������� 8,372.9 266.8 2,085.6 159.0 3,036.2 120.9 44.2 30.4 91

Savings institutions ����������������������������������������������������� 900.7 15.1 0.0 0.4 326.1 419.1 43.0 3.9

Bank net income (in millions) ��������������������������������������������� 55,223 -3,206 18,895 1,484 9,698 4,160 1,070 509 689 21,923

Commercial banks������������������������������������������������������� 48,995 -4,025 18,895 1,482 8,103 1,923 679 353 778 20,808

Savings institutions ����������������������������������������������������� 6,228 819 0 2 1,595 2,238 391 156 -88 1,115

Performance Ratios (annualized, %

Yield on earning assets������������������������������������������������������ 4.74 14.08 3.41 5.28 4.91 4.46 5.80 3.80

Cost of funding earning assets ������������������������������������������ 0.96 1.56 0.69 1.34 1.16 1.41 1.29 0.99

Net interest margin������������������������������������������������������ 3.78 12.52 2.71 3.94 3.75 3.05 4.51 2.81

Noninterest income to assets��������������������������������������������� 1.82 2.94 2.11 0.64 1.36 0.90 2.07 7.06

Noninterest expense to assets������������������������������������������� 3.02 6.52 2.82 2.65 3.00 1.92 2.76 7.53

Loan and lease loss provision to assets���������������������������� 1.26 7.08 0.60 0.44 1.29 0.74 1.33 0.23

Net operating income to assets ����������������������������������������� 0.51 -0.71 0.73 1.01 0.24 0.69 1.45 1.41

Pretax return on assets ������������������������������������������������������ 0.85 0.11 1.07 1.20 0.44 1.11 2.25 1.99

Return on assets����������������������������������������������������������������� 0.56 -0.64 0.79 1.04 0.29 0.70 1.45 1.57

Return on equity ����������������������������������������������������������������� 5.00 -3.60 8.81 9.27 2.64 7.18 13.73 9.65

Net charge-offs to loans and leases���������������������������������� 2.59 11.88 2.04 0.53 1.88 1.15 2.20 0.81

Loan and lease loss provision to net charge-offs�������������� 87.63 72.91 84.30 129.54 100.22 106.94 79.66 103.60 11

Efficiency ratio �������������������������������������������������������������������� 55.94 30.58 63.31 61.69 62.84 50.78 43.14 77.95 7

% of unprofitable institutions���������������������������������������������� 20.44 13.64 0.00 7.14 29.56 14.94 6.10 12.19 

% of institutions with earnings gains���������������������������������� 64.16 86.36 80.00 64.56 64.66 70.26 76.83 50.31 5

Condition Ratios (%

Earning assets to total assets �������������������������������������������� 86.28 87.55 83.85 91.53 88.29 93.04 94.18 90.05 9

Loss Allowance to:

Loans and leases �������������������������������������������������������� 3.27 9.21 3.91 1.56 2.54 1.48 2.63 1.86

Noncurrent loans and leases �������������������������������������� 63.93 403.00 60.68 80.41 56.02 30.69 199.45 69.24 5

Noncurrent assets plus

other real estate owned to assets������������������������������� 3.25 1.94 2.36 1.71 3.84 3.24 1.10 1.06

Equity capital ratio�������������������������������������������������������������� 11.25 15.82 9.06 11.40 11.39 10.11 10.58 17.17 1

Core capital (leverage) ratio����������������������������������������������� 8.99 12.02 7.39 10.16 9.45 9.23 10.29 15.44 

Tier 1 risk-based capital ratio��������������������������������������������� 12.68 14.01 12.18 14.11 12.24 19.12 14.18 34.74 1

Total risk-based capital ratio ���������������������������������������������� 15.30 16.78 15.26 15.25 14.39 20.16 15.34 35.77 1

Net loans and leases to deposits��������������������������������������� 77.07 193.17 50.85 77.23 87.42 85.03 86.09 33.88 6

Net loans to total assets����������������������������������������������������� 53.41 77.25 32.35 63.46 66.17 58.18 72.23 26.14 5

Domestic deposits to total assets �������������������������������������� 57.82 35.60 30.70 82.17 73.94 68.33 82.88 76.11 8

Structural Changes

New charters ��������������������������������������������������������������� 8 0 0 0 5 1 0 1 0 1

Institutions absorbed by mergers ������������������������������� 124 0 0 18 91 1 0 0 5 9

Failed institutions �������������������������������������������������������� 127 0 0 3 115 4 1 1 2 1

PRIOR first Th

(The way it was...)

Number of Institutions ������������������������������������������������2009 8,099 24 4 1,580 4,540 795 81 284 732 59

��������������������������������������������������������2007 8,559 28 4 1,634 4,739 780 120 376 821 57

��������������������������������������������������������2005 8,858 29 4 1,733 4,557 928 125 420 992 70

Total assets (in billions)����������������������������������������������2009 $13,246.5 $500.5 $3,183.4 $177.7 $5,184.1 $852.0 $95.8 $37.8 $102.

��������������������������������������������������������2007 12,706.1 423.5 2,644.0 157.3 5,054.4 1,454.1 95.8 40.1 111

��������������������������������������������������������2005 10,700.7 359.9 1,838.9 143.0 3,667.4 1,677.1 109.2 47.7 128

Return on assets (%)��������������������������������������������������2009 0.09 -0.58 0.00 0.90 -0.22 0.47 0.22 0.64

��������������������������������������������������������2007 1.10 3.81 0.87 1.25 1.09 0.73 1.40 2.37

��������������������������������������������������������2005 1.31 3.19 0.88 1.32 1.36 1.12 1.70 1.73

Net charge-offs to loans & leases (%) �����������������������2009 2.38 9.93 2.90 0.52 1.77 1.26 2.64 0.81

��������������������������������������������������������2007 0.50 3.90 0.65 0.19 0.28 0.29 0.97 0.30

��������������������������������������������������������2005 0.47 4.27 0.88 0.15 0.22 0.10 1.46 0.29

Noncurrent assets plus 

OREO to assets (%) ��������������������������������������������2009 3.08 2.09 2.64 1.59 3.71 3.17 1.25 0.60

��������������������������������������������������������2007 0.73 1.34 0.51 0.81 0.81 1.09 0.53 0.26

��������������������������������������������������������2005 0.50 1.36 0.48 0.68 0.48 0.57 0.54 0.25

Equity capital ratio (%)������������������������������������������������2009 10.89 25.25 8.45 11.32 10.97 9.30 10.87 17.58 1

��������������������������������������������������������2007 10.44 23.17 7.78 11.32 10.85 9.44 11.89 19.54 1

��������������������������������������������������������2005 10.25 22.07 8.23 10.86 10.21 10.67 9.58 19.26 

* 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 9 2010, Volume 4, No. 4

Quarterly Banking Profile

TABLE IV-A. First Three Quarters 2010, All FDIC-Insured Institutions

Asset Size Distribution Geographic Regions

First Three

(The way it is...)

All Insured 

Institutions

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

Number of institutions reporting��������������������� 7,760 2,681 4,414 556 109 960 1,041 1,609 1,841 1,637 672

Commercial banks����������������������������������� 6,622 2,383 3,731 421 87 502 921 1,326 1,743 1,518 612

Savings institutions ��������������������������������� 1,138 298 683 135 22 458 120 283 98 119 60

Total assets (in billions)���������������������������������� $13,383.3 $151.1 $1,316.0 $1,400.9 $10,515.4 $2,734.6 $2,957.2 $2,948.1 $1,649.6 $788

Commercial banks����������������������������������� 12,130.3 134.7 1,079.5 1,068.6 9,847.6 2,065.5 2,830.6 2,820.4 1,600.9 69

Savings institutions ��������������������������������� 1,252.9 16.4 236.5 332.2 667.8 669.2 126.5 127.8 48.7

Total deposits (in billions)������������������������������� 9,273.6 126.5 1,082.6 1,071.6 6,993.0 1,793.8 2,105.2 1,976.5 1,199.8 62

Commercial banks����������������������������������� 8,372.9 113.6 896.3 820.7 6,542.4 1,326.4 2,013.3 1,881.0 1,162.8 55

Savings institutions ��������������������������������� 900.7 12.9 186.3 250.9 450.6 467.4 91.9 95.5 37.0

Bank net income (in millions) ������������������������� 55,223 471 3,854 2,878 48,021 3,806 9,811 13,800 9,875 4,367 13,563

Commercial banks����������������������������������� 48,995 468 3,349 1,775 43,403 924 9,720 13,785 9,684 3,750 11,132

Savings institutions ��������������������������������� 6,228 4 504 1,102 4,618 2,882 91 16 190 617 2,431

Performance Ratios (annualized, %

Yield on earning assets���������������������������������� 4.74 5.25 5.20 4.94 4.64 5.51 4.41 3.83 5.8

Cost of funding earning assets ���������������������� 0.96 1.34 1.42 1.30 0.85 1.15 0.92 0.81 0.8

Net interest margin���������������������������������� 3.78 3.91 3.78 3.64 3.80 4.36 3.49 3.03 5.0

Noninterest income to assets������������������������� 1.82 1.26 0.96 1.26 2.01 1.64 1.73 2.00 2.2

Noninterest expense to assets����������������������� 3.02 3.83 3.17 2.90 3.01 3.33 2.78 2.99 3.4

Loan and lease loss provision to assets�������� 1.26 0.51 0.78 1.17 1.35 1.58 1.30 0.87 1.9

Net operating income to assets ��������������������� 0.51 0.38 0.33 0.24 0.57 0.15 0.38 0.56 0.8

Pretax return on assets ���������������������������������� 0.85 0.52 0.54 0.52 0.94 0.55 0.66 0.85 1.1

Return on assets��������������������������������������������� 0.56 0.42 0.39 0.28 0.62 0.19 0.44 0.63 0.8

Return on equity ��������������������������������������������� 5.00 3.48 3.86 2.51 5.47 1.47 3.89 7.10 6.8

Net charge-offs to loans and leases�������������� 2.59 0.72 1.00 1.71 3.02 3.75 2.51 2.04 2.9

Loan and lease loss provision to net 

charge-offs ���������������������������������������������� 87.63 115.42 115.45 106.20 84.35 76.25 91.55 88.35 94.08 1

Efficiency ratio ������������������������������������������������ 55.94 79.23 70.96 61.68 53.37 49.97 58.40 63.76 50.15 

% of unprofitable institutions�������������������������� 20.44 21.04 20.00 22.30 13.76 14.58 41.59 18.33 14.01 

% of institutions with earnings gains�������������� 64.16 60.98 65.27 68.71 74.31 75.83 61.86 62.40 64.75 

Condition Ratios (%

Earning assets to total assets ����������������������� 86.28 90.98 91.46 90.23 85.03 86.48 84.11 86.19 87.29 

Loss Allowance to:

Loans and leases ����������������������������������� 3.27 1.66 1.85 2.27 3.69 3.63 3.16 3.17 3.6

Noncurrent loans and leases ����������������� 63.93 62.13 51.86 49.45 67.13 99.74 49.61 56.87 63.35 

Noncurrent assets plus

other real estate owned to assets���������� 3.25 2.42 3.40 3.71 3.18 2.18 4.06 3.06 4.5

Equity capital ratio����������������������������������������� 11.25 12.20 10.37 11.23 11.35 12.80 11.56 9.06 11.56 

Core capital (leverage) ratio�������������������������� 8.99 11.57 9.70 9.76 8.76 9.95 8.36 7.47 9.16

Tier 1 risk-based capital ratio������������������������ 12.68 17.78 14.01 14.19 12.25 14.28 11.52 10.95 11.22 

Total risk-based capital ratio ������������������������� 15.30 18.89 15.23 15.53 15.23 16.64 14.71 14.19 13.81 

Net loans and leases to deposits������������������ 77.07 71.97 79.01 81.41 76.20 80.87 75.94 69.33 91.58 

Net loans to total assets�������������������������������� 53.41 60.27 65.00 62.27 50.67 53.05 54.06 46.48 66.61 

Domestic deposits to total assets ����������������� 57.82 83.74 82.19 75.96 51.98 57.76 62.47 52.98 67.59 

Structural Changes

New charters ������������������������������������������ 8 1 2 4 1 1 3 1 0 2 1

Institutions absorbed by mergers ���������� 124 51 56 15 2 14 37 13 30 17 13

Failed institutions ����������������������������������� 127 27 82 17 1 11 44 22 13 6 31

PRIOR first Th

(The way it was...)

Number of Institutions ��������������������������� 2009 8,099 2,915 4,493 579 112 989 1,140 1,666 1,895 1,672 737

����������������������������������� 2007 8,559 3,513 4,391 539 116 1,046 1,215 1,793 1,990 1,740 775

����������������������������������� 2005 8,858 3,943 4,294 503 118 1,113 1,219 1,890 2,074 1,806 756

Total assets (in billions)������������������������� 2009 $13,246.5 $160.5 $1,345.7 $1,497.6 $10,242.6 $2,501.3 $3,449.9 $3,106.2 $1,077.7 $755

����������������������������������� 2007 12,706.1 186.1 1,296.7 1,408.2 9,815.2 2,382.1 3,195.9 2,796.4 931.5 65

����������������������������������� 2005 10,700.7 205.8 1,225.7 1,366.0 7,903.2 2,756.0 2,635.3 2,494.5 784.1 58

Return on assets (%)����������������������������� 2009 0.09 0.19 0.05 -0.36 0.15 -0.14 0.08 0.22 0.73

����������������������������������� 2007 1.10 0.84 1.06 1.09 1.12 1.00 1.05 1.01 1.6

����������������������������������� 2005 1.31 1.08 1.24 1.34 1.32 1.27 1.38 1.01 1.6

Net charge-offs to loans & leases (%) �� 2009 2.38 0.78 1.01 1.82 2.74 2.73 2.18 2.15 2.4

����������������������������������� 2007 0.50 0.18 0.19 0.35 0.59 0.86 0.25 0.37 0.6

����������������������������������� 2005 0.47 0.16 0.18 0.22 0.58 0.81 0.22 0.29 0.5

Noncurrent assets plus 

OREO to assets (%) ����������������������� 2009 3.08 2.13 3.14 3.52 3.02 1.91 3.52 3.19 3.4

����������������������������������� 2007 0.73 0.87 0.89 0.83 0.70 0.67 0.54 0.78 1.1

����������������������������������� 2005 0.50 0.71 0.54 0.50 0.49 0.46 0.31 0.54 0.8

Equity capital ratio (%)��������������������������� 2009 10.89 12.41 10.11 10.75 10.99 12.98 11.57 8.68 10.85 

����������������������������������� 2007 10.44 13.68 10.57 11.38 10.23 12.43 10.14 9.09 10.13 

����������������������������������� 2005 10.25 12.26 10.26 10.57 10.14 10.63 9.86 9.18 10.67

* 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 Islan

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 10 2010, Volume 4, No. 4

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

Asset Concentration Groups*

September 30, 2010 All Insured 

Institutions

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 ��������������������������������������� 1.97 2.12 2.90 1.17 1.52 1.75 1.14 1.64

Construction and development��������������������������������� 2.23 0.00 1.88 2.35 2.14 3.99 1.52 2.35

Nonfarm nonresidential��������������������������������������������� 1.09 0.00 0.63 0.93 1.11 1.39 1.50 1.18

Multifamily residential real estate ����������������������������� 1.05 0.00 0.61 1.38 1.23 1.30 0.26 1.64

Home equity loans����������������������������������������������������� 1.23 3.31 1.72 0.72 0.88 1.08 1.07 0.50

Other 1-4 family residential��������������������������������������� 2.85 2.02 4.48 1.80 2.07 1.79 1.17 1.95

Commercial and industrial loans ������������������������������������� 0.74 2.88 0.48 1.44 0.78 0.92 1.18 1.04

Loans to individuals���������������������������������������������������������� 2.10 2.19 2.38 1.79 1.76 1.42 1.76 1.70

Credit card loans ������������������������������������������������������� 2.17 2.14 2.86 1.37 1.64 2.76 1.13 1.94

Other loans to individuals ����������������������������������������� 2.03 3.22 2.20 1.79 1.78 1.07 2.05 1.68

All other loans and leases (including farm) ��������������������� 0.45 0.01 0.35 0.46 0.58 0.64 0.37 0.85

Total loans and leases������������������������������������������������������ 1.68 2.16 1.92 1.07 1.35 1.71 1.56 1.53

Percent of Loans Noncurrent**

All real estate loans ���������������������������������������������������������� 7.28 4.41 10.23 2.38 5.72 5.09 1.42 3.31 

Construction and development.................................. 16.63 0.00 1

Nonfarm nonresidential��������������������������������������������� 4.36 0.00 4.50 2.68 4.15 3.59 4.04 2.93

Multifamily residential real estate ����������������������������� 4.67 0.00 4.35 3.08 4.48 2.24 3.63 8.42

Home equity loans����������������������������������������������������� 1.82 2.75 2.00 0.99 1.33 1.54 0.82 0.58

Other 1-4 family residential��������������������������������������� 9.68 5.36 17.06 1.68 5.24 5.38 1.22 2.00 

Commercial and industrial loans ������������������������������������� 2.78 2.38 4.99 2.37 2.39 2.59 0.75 2.13

Loans to individuals���������������������������������������������������������� 1.87 2.35 2.31 0.73 1.38 1.10 1.32 0.85

Credit card loans ������������������������������������������������������� 2.35 2.31 2.58 0.73 2.72 3.38 1.10 1.26

Other loans to individuals ����������������������������������������� 1.36 3.24 2.21 0.73 1.11 0.50 1.42 0.82

All other loans and leases (including farm) ��������������������� 1.31 0.02 1.77 0.85 1.40 0.61 0.45 0.76

Total loans and leases������������������������������������������������������ 5.12 2.29 6.44 1.94 4.54 4.82 1.31 2.69

Percent of Loans Charged-off (net, YTD)

All real estate loans ���������������������������������������������������������� 1.92 4.92 2.27 0.50 1.94 1.04 1.47 0.76

Construction and development��������������������������������� 5.28 0.00 2.94 3.07 5.84 4.80 1.61 4.47

Nonfarm nonresidential��������������������������������������������� 1.17 0.00 1.22 0.56 1.23 0.73 0.40 0.33

Multifamily residential real estate ����������������������������� 1.14 0.00 0.97 0.53 1.30 0.88 0.71 1.00

Home equity loans����������������������������������������������������� 2.73 6.96 2.63 0.66 1.43 3.31 2.11 0.29

Other 1-4 family residential��������������������������������������� 1.55 4.80 2.77 0.33 1.43 0.81 0.93 0.37

Commercial and industrial loans ������������������������������������� 1.83 15.28 1.49 1.20 1.69 1.48 5.31 0.81

Loans to individuals���������������������������������������������������������� 6.42 12.11 3.28 0.58 2.37 3.28 2.20 0.85

Credit card loans ������������������������������������������������������� 10.93 12.07 6.38 2.09 7.68 10.27 4.73 4.37

Other loans to individuals ����������������������������������������� 2.05 12.84 2.17 0.54 1.31 1.23 1.10 0.55

All other loans and leases (including farm) ��������������������� 0.69 0.01 0.65 0.00 1.15 0.43 2.45 1.30

Total loans and leases������������������������������������������������������ 2.59 11.88 2.04 0.53 1.88 1.15 2.18 0.81

Loans Outstanding (in billions)

All real estate loans ���������������������������������������������������������� $4,302.3 $0.1 $521.8 $73.7 $2,061.7 $430.8 $20.2 $8.1 $53.

Construction and development��������������������������������� 353.8 0.0 7.8 4.6 252.2 8.1 0.5 0.

Nonfarm nonresidential��������������������������������������������� 1,072.8 0.0 30.6 21.2 784.7 27.9 1.1 2.7 

Multifamily residential real estate ����������������������������� 215.8 0.0 40.3 1.6 131.0 9.6 0.1 0.

Home equity loans����������������������������������������������������� 647.9 0.0 129.4 1.6 224.2 28.0 9.0 0.2

Other 1-4 family residential��������������������������������������� 1,880.4 0.1 263.9 19.6 628.0 356.2 9.2 3.9 

Commercial and industrial loans ������������������������������������� 1,174.7 30.8 198.1 15.9 564.6 12.1 4.1 1.5

Loans to individuals���������������������������������������������������������� 1,328.9 551.0 188.7 6.5 237.1 20.6 52.7 1.6

Credit card loans ������������������������������������������������������� 683.9 527.0 51.2 0.1 39.9 4.2 16.5 0.

Other loans to individuals ����������������������������������������� 645.0 24.1 137.5 6.3 197.2 16.4 36.2 1.5

All other loans and leases (including farm) ��������������������� 585.5 17.9 195.6 29.0 153.4 2.6 0.8 0.6

Total loans and leases (plus unearned income)�������������� 7,391.4 599.9 1,104.3 125.1 3,016.8 466.1 77.7 11.9 72

Memo: Other Real Estate Owned (in millions

All other real estate owned����������������������������������������������� 53,194.4 -19.2 4,448.9 849.1 33,348.8 2,975.7 73.7 147.4 706.

Construction and development��������������������������������� 18,447.6 0.0 6.0 303.1 15,829.2 436.7 23.4 84.0 188

Nonfarm nonresidential��������������������������������������������� 10,222.0 0.0 203.5 266.9 7,997.6 207.2 12.1 30.6 158

Multifamily residential real estate ����������������������������� 2,886.6 0.0 914.0 40.6 1,334.4 63.6 3.0 3.9 

1-4 family residential ������������������������������������������������� 14,761.9 0.2 1,337.4 169.8 6,853.8 1,781.9 29.7 27.5 315

Farmland�������������������������������������������������������������������� 364.5 0.0 0.0 68.6 252.3 8.5 5.5 1.4

GNMA properties������������������������������������������������������� 6,293.5 0.0 1,772.0 0.1 1,058.8 478.0 0.0 0.0 1

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status
FDIC Quarterly 11 2010, Volume 4, No. 4

Quarterly Banking Profile

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

Asset Size Distribution Geographic Regions

September 30, 2010 All Insured 

Institutions

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 ������������������������������ 1.97 1.67 1.48 1.27 2.25 1.52 2.13 1.90 2.5

Construction and development������������������������ 2.23 2.03 2.37 2.08 2.23 2.50 1.90 2.40 2.6

Nonfarm nonresidential������������������������������������ 1.09 1.35 1.25 1.03 1.02 1.18 1.19 1.14 1.0

Multifamily residential real estate �������������������� 1.05 1.44 1.32 1.11 0.97 1.04 1.14 0.98 1.0

Home equity loans�������������������������������������������� 1.23 0.92 0.88 0.81 1.29 0.69 1.45 1.39 1.1

Other 1-4 family residential������������������������������ 2.85 2.20 1.67 1.42 3.28 1.83 3.05 2.74 4.1

Commercial and industrial loans ���������������������������� 0.74 1.76 1.18 0.90 0.66 1.14 0.58 0.73 0.9

Loans to individuals������������������������������������������������� 2.10 2.22 1.81 2.05 2.11 2.13 2.22 1.69 2.5

Credit card loans ���������������������������������������������� 2.17 1.68 2.30 2.25 2.17 2.04 2.35 1.96 2.5

Other loans to individuals �������������������������������� 2.03 2.23 1.78 1.98 2.05 2.44 2.15 1.62 2.3

All other loans and leases (including farm) ������������ 0.45 0.48 0.50 0.48 0.44 0.30 0.30 0.59 0.6

Total loans and leases��������������������������������������������� 1.68 1.59 1.41 1.25 1.79 1.56 1.76 1.54 2.1

Percent of Loans Noncurrent** 

All real estate loans ������������������������������������������������� 7.28 3.12 4.06 5.52 8.53 4.86 9.16 8.02 8.6

Construction and development������������������������ 16.63 10.33 13.00 17.17 18.03 18.20 17.47 15.01 17.13 

Nonfarm nonresidential������������������������������������ 4.36 3.44 3.29 4.33 4.95 3.87 4.91 4.47 4.5

Multifamily residential real estate �������������������� 4.67 3.16 3.57 4.51 4.98 2.98 8.25 4.43 3.9

Home equity loans�������������������������������������������� 1.82 1.27 1.26 1.44 1.89 1.21 1.87 1.69 2.8

Other 1-4 family residential������������������������������ 9.68 2.29 2.76 4.02 11.87 4.81 12.52 13.01 12.7

Commercial and industrial loans ���������������������������� 2.78 2.69 2.43 2.62 2.85 2.78 2.07 2.60 2.7

Loans to individuals������������������������������������������������� 1.87 1.04 0.79 1.25 1.95 2.18 1.49 1.38 2.1

Credit card loans ���������������������������������������������� 2.35 0.93 1.67 2.06 2.36 2.34 2.39 2.68 2.4

Other loans to individuals �������������������������������� 1.36 1.04 0.74 0.96 1.45 1.61 1.00 1.04 1.5

All other loans and leases (including farm) ������������ 1.31 0.93 0.94 1.14 1.35 0.83 0.66 1.34 0.9

Total loans and leases��������������������������������������������� 5.12 2.67 3.56 4.59 5.49 3.64 6.36 5.57 5.7

Percent of Loans Charged-off (net, YTD) 

All real estate loans ������������������������������������������������� 1.92 0.66 0.93 1.70 2.22 1.04 2.63 2.11 1.9

Construction and development������������������������ 5.28 3.19 3.30 5.80 5.89 4.51 6.07 6.36 4.1

Nonfarm nonresidential������������������������������������ 1.17 0.59 0.60 1.23 1.45 0.87 1.45 1.58 0.7

Multifamily residential real estate �������������������� 1.14 0.85 0.80 1.35 1.16 0.83 1.43 1.23 0.8

Home equity loans�������������������������������������������� 2.73 0.83 0.68 1.21 3.00 0.87 3.92 1.98 3.7

Other 1-4 family residential������������������������������ 1.55 0.37 0.60 0.85 1.83 0.75 1.92 1.92 1.6

Commercial and industrial loans ���������������������������� 1.83 1.42 1.48 1.50 1.92 2.97 1.41 1.81 1.8

Loans to individuals������������������������������������������������� 6.42 0.80 1.37 2.55 6.88 10.56 4.34 2.69 8.4

Credit card loans ���������������������������������������������� 10.93 4.04 7.34 7.50 11.04 12.41 10.02 7.91 13.4

Other loans to individuals �������������������������������� 2.05 0.75 0.98 0.97 2.25 4.50 1.55 1.34 1.8

All other loans and leases (including farm) ������������ 0.69 0.00 0.55 0.79 0.71 0.43 0.40 1.12 0.6

Total loans and leases��������������������������������������������� 2.59 0.72 1.00 1.71 3.02 3.74 2.51 2.04 2.9

Loans Outstanding (in billions) 

All real estate loans ������������������������������������������������� $4,302.3 $63.6 $681.5 $657.6 $2,899.6 $827.4 $1,040.1 $848.5 $633.8 $3

Construction and development������������������������ 353.8 4.9 77.7 77.8 193.4 50.3 111.0 57.0 50.

Nonfarm nonresidential������������������������������������ 1,072.8 18.9 263.6 262.9 527.4 222.5 236.7 194.5 149.8 

Multifamily residential real estate �������������������� 215.8 1.9 31.6 41.7 140.6 59.8 31.9 64.1 18

Home equity loans�������������������������������������������� 647.9 2.0 37.7 48.6 559.6 89.2 186.2 173.0 115.

Other 1-4 family residential������������������������������ 1,880.4 27.3 237.0 215.3 1,400.8 399.9 458.5 343.5 274.7 

Commercial and industrial loans ���������������������������� 1,174.7 12.0 109.4 132.7 920.7 181.3 274.8 245.8 169.6

Loans to individuals������������������������������������������������� 1,328.9 6.5 40.9 71.1 1,210.5 404.2 223.4 181.8 226.0

Credit card loans ���������������������������������������������� 683.9 0.1 2.4 18.8 662.6 318.2 78.9 37.8 138.

Other loans to individuals �������������������������������� 645.0 6.4 38.4 52.3 547.9 86.0 144.6 144.0 87.1

All other loans and leases (including farm) ������������ 585.5 10.5 40.2 32.2 502.6 93.0 112.5 139.1 111.1

Total loans and leases (plus unearned income)����� 7,391.4 92.6 871.9 893.5 5,533.3 1,505.8 1,650.8 1,415.2 1,140.5 51

Memo: Other Real Estate Owned (in millions)

All other real estate owned�������������������������������������� 53,194.4 1,155.0 13,634.0 10,763.5 27,641.9 4,454.9 14,972.8 11,034.2 10,055.8 5,80

Construction and development������������������������ 18,447.6 393.4 6,462.2 5,771.5 5,820.5 1,187.4 5,883.7 2,510.9 3,229.3 2,95

Nonfarm nonresidential������������������������������������ 10,222.0 349.9 3,509.4 2,370.1 3,992.6 1,040.6 2,253.4 2,301.2 1,917.6 1,32

Multifamily residential real estate �������������������� 2,886.6 36.5 499.7 399.5 1,950.8 257.9 510.1 547.9 456.1 

1-4 family residential ���������������������������������������� 14,761.9 345.1 2,962.5 2,035.5 9,418.9 1,710.4 4,466.0 2,980.3 2,875.5 1,25

Farmland����������������������������������������������������������� 364.5 28.4 197.0 97.7 41.4 22.0 52.3 65.6 78.5

GNMA properties���������������������������������������������� 6,293.5 2.0 4.5 90.3 6,196.7 216.4 1,807.4 2,628.9 1,499.0

* 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 12 2010, Volume 4, No. 4

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

Asset Size Distribution

(dollar figures in millions;

notional amounts unless otherwise indicated)

3rd Quarter

2010

2nd Quarter

2010

1st Quarter

2010

4th Quarter

2009

3rd Quarter 

2009

% Change 

09Q3-

10Q3

Less 

than $100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

Greater than 

$10 Billion

ALL DERIVATIVE HOLDE

Number of institutions reporting derivatives����������������� 1,209 1,159 1,149 1,130 1,175 2.9 96 743 290 8

Total assets of institutions reporting derivatives ���������� $10,899,038 $10,670,936 $10,766,563 $10,568,136 $10,546,525 3.3 $6,761 $309,670 $838,111 $9,744,49

Total deposits of institutions reporting derivatives������� 7,402,523 7,248,693 7,281,901 7,341,245 7,183,905 3.0 5,616 251,106 646,921 6,498,87

Total derivatives������������������������������������������������������������� 236,386,455 225,433,410 218,715,076 215,449,089 211,694,352 11.7 430 24,351 81,121 236,280,55

Derivative Contracts by Underlying Risk Exposur

Interest rate�������������������������������������������������������������������� 196,549,856 188,613,951 182,641,572 181,454,530 177,897,013 10.5 423 24,078 76,180 196,449,17

Foreign exchange*��������������������������������������������������������� 22,531,799 20,245,402 19,202,392 17,299,787 17,709,555 27.2 0 35 3,704 22,528,06

Equity ����������������������������������������������������������������������������� 1,679,107 1,615,041 1,570,952 1,685,227 2,180,499 -23.0 8 133 658 1,678,30

Commodity & other (excluding credit derivatives)�������� 1,153,316 1,082,812 941,687 978,922 926,295 24.5 0 77 161 1,153,07

Credit������������������������������������������������������������������������������ 14,472,378 13,876,204 14,358,473 14,030,623 12,980,990 11.5 0 28 418 14,471,93

Total�������������������������������������������������������������������������������� 236,386,455 225,433,410 218,715,076 215,449,089 211,694,352 11.7 430 24,351 81,121 236,280,55

Derivative Contracts by Transaction Type 

Swaps ���������������������������������������������������������������������������� 146,953,921 141,420,345 136,333,735 139,137,539 137,212,838 7.1 37 9,464 46,535 146,897,88

Futures & forwards �������������������������������������������������������� 39,643,725 36,793,803 34,747,302 29,651,811 27,306,403 45.2 174 6,735 18,003 39,618,81

Purchased options��������������������������������������������������������� 16,911,273 15,402,898 15,759,284 15,986,712 16,236,605 4.2 14 693 3,223 16,907,34

Written options��������������������������������������������������������������� 16,697,413 15,901,536 15,910,905 15,897,600 15,845,169 5.4 206 7,431 12,484 16,677,29

Total�������������������������������������������������������������������������������� 220,206,332 209,518,582 202,751,226 200,673,663 196,601,015 12.0 430 24,323 80,245 220,101,33

Fair Value of Derivative Contracts 

Interest rate contracts���������������������������������������������������� 107,170 98,101 94,739 97,185 123,707 -13.4 6 28 221 106,91

Foreign exchange contracts������������������������������������������ -7,464 -4,874 1,329 9,511 -5,171 N/M 0 0 -5 -7,458

Equity contracts������������������������������������������������������������� -1,784 305 -856 1,236 -253 N/M 0 4 3 -1,790

Commodity & other (excluding credit derivatives)�������� -721 -574 1,064 1,661 3,641 N/M 0 6 2 -729

Credit derivatives as guarantor������������������������������������� -131,313 -222,426 -121,494 -161,114 -235,401 N/M 0 0 1 -131,314

Credit derivatives as beneficiary����������������������������������� 150,796 242,561 141,388 189,531 268,165 -43.8 0 0 -4 150,80

Derivative Contracts by Maturity** 

Interest rate contracts ����������������������������� < 1 year 90,918,669 89,000,748 84,010,744 81,236,281 78,357,119 16.0 132 7,505 16,869 90,894,16

 ������������������������������������������ 1-5 years 35,138,749 33,347,773 33,334,968 33,970,247 34,321,414 2.4 20 6,458 23,418 35,108,85

 ������������������������������������������ > 5 years 24,550,165 23,099,484 24,121,171 26,373,563 26,851,340 -8.6 36 2,300 17,743 24,530,08

Foreign exchange contracts ������������������� < 1 year 13,362,678 11,959,581 11,092,119 10,416,223 9,674,124 38.1 0 30 2,349 13,360,29

 ������������������������������������������ 1-5 years 2,582,310 2,356,096 2,440,019 2,448,723 2,405,751 7.3 0 4 54 2,582,25

 ������������������������������������������ > 5 years 1,431,627 1,306,940 1,329,332 1,345,678 1,325,661 8.0 0 0 84 1,431,54

Equity contracts��������������������������������������� < 1 year 352,002 326,742 320,739 312,066 358,462 -1.8 2 22 123 351,85

 ������������������������������������������ 1-5 years 217,566 205,283 220,441 227,854 301,995 -28.0 1 49 243 217,27

 ������������������������������������������ > 5 years 86,705 80,586 83,990 81,647 81,869 5.9 0 3 0 86,70

Commodity & other contracts ����������������� < 1 year 311,897 324,203 287,660 261,429 237,860 31.1 0 38 77 311,78

 ������������������������������������������ 1-5 years 241,288 210,319 177,250 223,654 233,829 3.2 0 17 42 241,22

 ������������������������������������������ > 5 years 33,836 30,459 31,220 34,250 43,612 -22.4 0 0 0 33,83

Risk-Based Capital: Credit Equivalent Amount

Total current exposure to tier 1 capital (%)������������������� 48.4 44.9 41.2 45.9 57.3 0.2 0.7

Total potential future exposure to tier 1 capital (%)������ 82.8 82.9 88.9 83.3 83.6 0.1 0.1

Total exposure (credit equivalent amount) 

to tier 1 capital (%)�������������������������������������������������� 131.1 127.7 130.2 129.2 140.9 0.3 0.8 

Credit losses on derivatives***���������������������������������� 544.0 259.0 100.0 767.0 605.0 -10.1 0.0 1.0 

HELD FOR TRADI

Number of institutions reporting derivatives����������������� 200 189 195 197 207 -3.4 11 76 56 5

Total assets of institutions reporting derivatives ���������� 9,001,838 8,882,950 8,949,285 8,873,916 8,911,543 1.0 775 32,396 222,924 8,745,74

Total deposits of institutions reporting derivatives������� 6,139,839 6,078,628 6,095,318 6,145,572 6,014,547 2.1 626 26,120 172,274 5,940,82

Derivative Contracts by Underlying Risk Exposur

Interest rate�������������������������������������������������������������������� 194,576,807 186,774,376 180,761,592 179,606,768 175,892,604 10.6 34 1,455 21,592 194,553,72

Foreign exchange���������������������������������������������������������� 20,699,946 18,072,001 17,462,757 16,439,507 15,510,936 33.5 0 0 2,576 20,697,37

Equity ����������������������������������������������������������������������������� 1,672,913 1,608,817 1,563,707 1,677,767 2,173,864 -23.0 0 1 233 1,672,67

Commodity & other�������������������������������������������������������� 1,145,723 1,077,566 934,851 974,849 924,183 24.0 0 0 75 1,145,64

Total�������������������������������������������������������������������������������� 218,095,389 207,532,761 200,722,908 198,698,891 194,501,586 12.1 34 1,456 24,477 218,069,42

Trading Revenues: Cash & Derivative Instruments

Interest rate�������������������������������������������������������������������� 4,209 144 304 707 3,547 18.7 0 0 36 4,17

Foreign exchange���������������������������������������������������������� -1,066 4,299 3,906 671 354 N/M 0 0 6 -1,072

Equity ����������������������������������������������������������������������������� 371 378 965 144 153 142.5 0 0 1 36

Commodity & other (including credit derivatives) �������� 637 1,815 3,004 417 1,648 -61.3 0 0 0 63

Total trading revenues��������������������������������������������������� 4,151 6,636 8,178 1,940 5,702 -27.2 0 0 44 4,10

Share of Revenue

Trading revenues to gross revenues (%) ���������������������� 3.5 5.4 6.6 1.6 4.7 0.0 0.

Trading revenues to net operating revenues (%)���������� 27.2 45.8 74.1 108.0 88.1 0.0 0.0 -1

HELD FOR PURPOSES OTHER THAN 

Number of institutions reporting derivatives����������������� 1,087 1,046 1,033 1,009 1,048 3.7 86 669 256 7

Total assets of institutions reporting derivatives ���������� 10,545,569 10,282,422 10,344,801 10,211,947 10,199,832 3.4 6,081 279,922 727,029 9,532,53

Total deposits of institutions reporting derivatives������� 7,198,934 7,015,333 7,035,433 7,098,433 6,955,097 3.5 5,064 226,948 558,595 6,408,32

Derivative Contracts by Underlying Risk Exposur

Interest rate�������������������������������������������������������������������� 1,973,049 1,839,575 1,879,980 1,847,762 2,004,409 -1.6 389 22,623 54,588 1,895,45

Foreign exchange���������������������������������������������������������� 124,108 134,777 134,258 115,478 86,272 43.9 0 35 669 123,40

Equity ����������������������������������������������������������������������������� 6,193 6,224 7,245 7,459 6,635 -6.7 7 132 425 5,62

Commodity & other�������������������������������������������������������� 7,593 5,246 6,835 4,073 2,112 259.5 0 77 86 7,43

Total notional amount ���������������������������������������������������� 2,110,943 1,985,821 2,028,318 1,974,772 2,099,429 0.5 396 22,867 55,768 2,031,91

All line items are reported on a quarterly basis. N/M - Not meaningf

* 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 contract

** 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 13 2010, Volume 4, No. 4

Quarterly Banking Profile

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

Savings Banks)

Asset Size Distribution

(dollar figures in millions)

3rd 

Quarter

2010

2nd 

Quarter

2010

1st 

Quarter

2010

4th 

Quarter

2009

3rd 

Quarter 

2009

% Change 

09Q3-

10Q3

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 Enhancement

Number of institutions reporting securitization activities ����������������������������������������� 138 128 126 141 142 -2.8 21 68 20 2

Outstanding Principal Balance by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� $776,028 $1,180,361 $1,194,082 $1,208,975 $1,225,978 -36.7 $319 $462 $2,287 $772,96

Home equity loans��������������������������������������������������������������������������������������������� 0 0 15 5,947 6,205 -100.0 0 0 0 

Credit card receivables�������������������������������������������������������������������������������������� 14,320 15,452 16,133 363,486 391,417 -96.3 0 796 0 13,52

Auto loans ���������������������������������������������������������������������������������������������������������� 326 486 600 7,182 8,277 -96.1 0 0 54 27

Other consumer loans ��������������������������������������������������������������������������������������� 4,333 5,021 5,610 24,692 25,335 -82.9 0 0 0 4,33

Commercial and industrial loans����������������������������������������������������������������������� 7,972 3,796 4,127 7,649 8,436 -5.5 1 8 664 7,30

All other loans, leases, and other assets* �������������������������������������������������������� 210,199 206,675 192,853 198,835 198,346 6.0 5 48 118 210,02

Total securitized and sold������������������������������������������������������������������������������������������ 1,013,180 1,411,792 1,413,420 1,816,767 1,863,994 -45.6 324 1,314 3,123 1,008,41

Maximum Credit Exposure by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 4,834 4,953 5,166 5,868 6,203 -22.1 2 22 0 4,81

Home equity loans��������������������������������������������������������������������������������������������� 0 0 14 1,023 1,006 -100.0 0 0 0 

Credit card receivables�������������������������������������������������������������������������������������� 574 664 730 134,193 136,043 -99.6 0 139 0 43

Auto loans ���������������������������������������������������������������������������������������������������������� 6 6 6 637 745 -99.2 0 0 6 

Other consumer loans ��������������������������������������������������������������������������������������� 207 245 237 1,410 1,434 -85.6 0 0 0 20

Commercial and industrial loans����������������������������������������������������������������������� 102 94 95 225 274 -62.8 0 0 86 1

All other loans, leases, and other assets���������������������������������������������������������� 1,142 248 257 287 333 242.9 0 4 0 1,13

Total credit exposure ������������������������������������������������������������������������������������������������� 6,864 6,210 6,506 143,643 146,038 -95.3 2 165 91 6,60

Total unused liquidity commitments provided to institution's own securitizations ��� 211 166 162 387 398 -47.0 1 0 1 20

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

1-4 family residential loans�������������������������������������������������������������������������������� 6.0 3.7 3.9 4.4 4.6 3.2 0.

Home equity loans��������������������������������������������������������������������������������������������� 0.0 0.0 0.0 1.3 1.3 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 1.2 1.5 1.5 2.7 2.9 0.0 2.

Auto loans ���������������������������������������������������������������������������������������������������������� 1.4 1.2 1.2 2.3 2.4 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 3.4 3.7 3.3 3.9 3.6 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 0.1 0.2 0.3 2.3 2.9 0.0 21.

All other loans, leases, and other assets���������������������������������������������������������� 1.5 2.6 2.2 3.5 1.2 0.0 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 5.0 3.5 3.6 4.0 3.9 3.2 1.

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

1-4 family residential loans�������������������������������������������������������������������������������� 11.5 7.8 8.5 7.9 7.5 1.5 0.1

Home equity loans��������������������������������������������������������������������������������������������� 0.0 0.0 0.0 2.0 1.8 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 0.5 0.7 0.8 3.0 2.6 0.0 3.

Auto loans ���������������������������������������������������������������������������������������������������������� 0.3 0.2 0.3 0.2 0.3 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 2.9 2.7 2.7 3.6 3.6 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 0.1 0.1 0.1 1.0 1.2 0.0 0.

All other loans, leases, and other assets���������������������������������������������������������� 9.8 8.5 7.5 4.3 3.6 8.9 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 10.9 7.8 8.3 6.4 5.9 1.6 1.9

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

1-4 family residential loans�������������������������������������������������������������������������������� 0.9 0.4 0.2 1.0 0.7 0.0 0.

Home equity loans��������������������������������������������������������������������������������������������� 0.0 0.0 0.0 1.8 1.4 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 6.2 4.2 2.2 10.2 7.6 0.0 8.

Auto loans ���������������������������������������������������������������������������������������������������������� 0.9 0.4 0.3 2.5 1.9 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 1.4 0.9 0.4 1.0 0.8 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 0.0 0.0 0.0 13.9 10.0 0.0 0.

All other loans, leases, and other assets���������������������������������������������������������� 0.2 0.0 0.0 0.1 0.0 0.0 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 0.9 0.4 0.2 2.8 2.1 0.0 5.

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

Home equity loans��������������������������������������������������������������������������������������������� 0 0 0 316 396 -100.0 0 0 0 

Credit card receivables�������������������������������������������������������������������������������������� 6,073 5,088 4,831 62,235 73,401 -91.7 0 62 0 6,01

Commercial and industrial loans����������������������������������������������������������������������� 2 3 4 894 930 -99.8 0 2 0 

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

Home equity loans��������������������������������������������������������������������������������������������� 0 0 0 1 2 -100.0 0 0 0 

Credit card receivables�������������������������������������������������������������������������������������� 0 0 0 789 788 -100.0 0 0 0 

Commercial and industrial loans����������������������������������������������������������������������� 0 0 0 0 0 0.0 0 0 0 

Assets Sold with Recourse and Not Securitized

Number of institutions reporting asset sales������������������������������������������������������������ 847 834 819 826 821 3.2 167 520 117 4

Outstanding Principal Balance by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 61,015 62,233 62,198 66,978 68,000 -10.3 1,152 10,497 4,646 44,72

Home equity, credit card receivables, auto, and other consumer loans ��������� 41 41 40 908 1,024 -96.0 0 9 17 1

Commercial and industrial loans����������������������������������������������������������������������� 445 537 669 2,654 2,844 -84.4 1 48 20 37

All other loans, leases, and other assets���������������������������������������������������������� 52,953 52,435 48,635 48,736 47,971 10.4 7 83 322 52,54

Total sold and not securitized������������������������������������������������������������������������������������ 114,454 115,246 111,542 119,277 119,840 -4.5 1,159 10,636 5,005 97,65

Maximum Credit Exposure by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 14,994 14,193 13,702 16,534 15,419 -2.8 118 1,717 2,878 10,28

Home equity, credit card receivables, auto, and other consumer loans ��������� 20 21 21 100 104 -80.8 0 6 3 1

Commercial and industrial loans����������������������������������������������������������������������� 77 77 62 1,934 2,003 -96.2 1 37 20 1

All other loans, leases, and other assets���������������������������������������������������������� 12,901 12,749 10,429 10,391 10,136 27.3 3 55 12 12,83

Total credit exposure ������������������������������������������������������������������������������������������������� 27,992 27,039 24,214 28,959 27,662 1.2 122 1,816 2,912 23,14

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others ������� 151 129 79 58 60 151.7 27 72 38 1

Total credit exposure ������������������������������������������������������������������������������������������������� 28,219 9,262 6,445 4,297 4,872 479.2 25 255 156 27,78

Total unused liquidity commitments ������������������������������������������������������������������������� 504 418 846 545 327 54.1 0 0 0 50

Other

Assets serviced for others**�������������������������������������������������������������������������������������� 5,891,806 5,956,287 5,995,633 6,011,088 5,978,455 -1.4 4,279 82,782 97,514 5,707,23

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others������������������ 11,649 7,299 7,253 15,953 17,649 -34.0 5 0 53 11,59

Unused liquidity commitments to conduits sponsored by institutions 

 and others �������������������������������������������������������������������������������������������������� 82,137 83,062 87,156 170,373 182,740 -55.1 0 0 1,373 80,76

Net servicing income (for the quarter)���������������������������������������������������������������������� 3,084 3,587 5,164 6,874 5,995 -48.6 34 107 136 2,80

Net securitization income (for the quarter)��������������������������������������������������������������� 164 156 13 1,615 1,163 -85.9 1 7 4 15

Total credit exposure to Tier 1 capital (%)***������������������������������������������������������������ 5.40 3.70 3.30 15.90 16.20 0.90 1.80 

* 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 14 2010, Volume 4, No. 4

Total assets of the nation’s 7,760 FDIC-insured 

commercial banks and savings institutions increased by 

$163.0 billion (1.2 percent) during third quarter 2010. 

Eighty-one percent of the quarter’s asset growth was 

funded by deposits, as noninterest-bearing deposits 

increased by 4.3 percent ($69.1 billion) and interestbearing deposits increased by 0.8 percent ($63.5 

billion). Domestic office deposits of banks and thrifts 

increased by 0.9 percent ($70.3 billion), and foreign 

office deposits increased by 4.2 percent ($62.3 billion).

Estimated insured deposits at all FDIC-insured institutions decreased by 0.3 percent during the third quarter 

but are 2.0 percent higher than four quarters earlier. For 

institutions existing at the start and end of the third 

quarter, insured deposits increased during the quarter at 

4,285 institutions (55 percent), decreased at 3,438 institutions (44 percent), and remained unchanged at 32 

institutions.

The Deposit Insurance Fund (DIF) balance increased by 

$7.2 billion during the third quarter to -$8.0 billion 

(unaudited), the third consecutive quarterly increase 

following seven quarters of decline. Assessment income 

of $3.6 billion and a $3.8 billion negative provision for 

insurance losses were the primary contributors to the 

improvement in the DIF balance. Interest earnings, 

combined with unrealized gains on available-for-sale 

securities and other net revenue, boosted the balance by 

another $0.3 billion. Operating expenses reduced the 

balance by $0.4 billion.

The DIF’s reserve ratio was -0.15 percent on September 

30, 2010, up from -0.28 percent at June 30, 2010, and 

up from -0.16 percent one year earlier. Forty-one FDICinsured institutions with combined assets of $13.9 

billion failed during third quarter 2010, at an estimated 

cost of $2.3 billion. For the first three quarters of 2010, 

127 insured institutions with combined assets of $83.3 

billion failed, at a currently estimated cost to the DIF of 

$19.4 billion.

Changes to Deposit Insurance Fund Management

The Dodd-Frank Wall Street Reform and Consumer 

Protection Act (Dodd-Frank), enacted in July 2010, 

revised the statutory authorities governing the FDIC’s 

management of the DIF. Specifically, Dodd-Frank: (1) 

raised the minimum designated reserve ratio (DRR), 

which the FDIC must set each year, to 1.35 percent 

from 1.15 percent; (2) removed the 1.5 percent upper 

limit on the DRR, thereby effectively eliminating the 

cap on the size of the fund; (3) required that the DIF 

reserve ratio reach 1.35 percent by September 30, 2020 

(rather than 1.15 percent by the end of 2016, as 

formerly required); (4) required that, in setting assessments, the FDIC offset the effect of raising the minimum DRR from 1.15 percent to 1.35 percent on 

insured depository institutions with total consolidated 

assets of less than $10 billion; (5) eliminated the 

requirement that the FDIC pay dividends when the 

reserve ratio is between 1.35 percent and 1.5 percent; 

and (6) continued the FDIC’s authority to declare dividends when the reserve ratio is at least 1.5 percent, but 

granted the FDIC sole discretion in determining 

whether to suspend or limit dividends.1

In October 2010, the FDIC adopted a new Restoration 

Plan to ensure that the reserve ratio reaches 1.35 

percent by September 30, 2020. Because of lower 

expected losses over the next five years and the 

additional time provided by Dodd-Frank to meet the 

minimum (albeit higher) DRR, the Restoration Plan 

eliminated the uniform 3 basis point increase in assessment rates scheduled to go into effect on January 1, 

2011.

Also in October, the FDIC approved the publication 

of a proposed rule with several features that would 

improve insurance fund management using the authority provided under Dodd-Frank. First, the FDIC 

1

 Pub. L. No. 111-203, §§332 and 334, 124 Stat. 1376, 1539 (to be 

codified at 12 U.S.C. § 1817).

■ DIF Reserve Ratio Rises 13 Basis Points to -0.15 Percent

■ Insured Deposit Growth Flat in Third Quarter

■ 41 Institutions Fail during Third Quarter

■ New Restoration Plan Removes Scheduled Assessment Rate Increase for 2011

■ Changes Proposed for Deposit Insurance Fund Management and Risk-Based 

Assessments

Insur
FDIC Quarterly 15 2010, Volume 4, No. 4

Quarterly Banking Profile

“custodial banks.”3 On November 9, 2010, the FDIC 

approved a proposed rule that would implement these 

changes. The FDIC expects to finalize this rulemaking 

in first quarter 2011. The change in the assessment base 

would take effect in second quarter 2011.

The proposed rule would require all insured depository 

institutions to report their average consolidated total 

assets on a daily basis. The proposal would define average 

tangible equity as the average of month-end Tier 1 capital 

within a quarter. Institutions with less than $1 billion in 

average consolidated total assets could, however, choose 

to report end-of-quarter Tier 1 capital. Tier 1 capital, 

which excludes many intangible assets, avoids an increase 

in regulatory burden that a new definition of capital could 

cause and also provides a clearly understood capital buffer 

for the DIF in the event of an institution’s failure.

The following table compares the distribution by institution asset size of the current and estimated proposed 

assessment bases, using data as of September 30, 2010. 

The new assessment base will require some changes in 

reporting that will not take effect until the second quarter of next year, as explained in the footnotes to the 

table. The table therefore provides only an estimate of 

what the proposed assessment base would be if it were 

in effect as of September 30, 2010.

3

 For the custodial bank adjustment, Dodd-Frank directed the FDIC to 

define a custodial bank based on factors including the percentage of 

total revenues generated by custodial businesses and the level of 

assets under custody. The proposal therefore would define a custodial 

bank as an institution whose previous calendar year-end custody and 

safekeeping assets were at least $50 billion or an institution that 

derived more than 50 percent of its revenue from custody and safekeeping activities during the previous calendar year. A custodial bank’s 

assessment base would exclude the bank’s daily average amount of 

safe, highly liquid, short-term assets, not to exceed the daily average 

value of those deposits held in a custody and safekeeping account.

proposed increasing the designated reserve ratio to 2 

percent of estimated insured deposits. The FDIC would 

view this target as a long-term minimum goal for the 

fund. An analysis conducted by FDIC staff found that a 

2 percent target would significantly improve the 

chances that the FDIC could maintain stable, moderate 

insurance assessment rates through economic or banking cycles while also maintaining a positive DIF balance 

even during a serious economic or banking downturn. 

The FDIC also proposed suspending dividends permanently when the reserve ratio reaches 1.5 percent. In 

lieu of paying dividends, the FDIC proposed future 

premium rate reductions, first when the reserve ratio 

exceeds 1.15 percent and again when the ratio exceeds 

2.0 percent and 2.5 percent. The FDIC expects to finalize a rule on the designated reserve ratio this year and 

on the remaining features in first quarter 2011.

Change in the Assessment Base

Dodd-Frank requires the FDIC to amend its regulations 

to define the assessment base as average consolidated 

total assets minus average tangible equity, rather than 

total domestic deposits (which, with minor adjustments, 

it has been since 1935). Dodd-Frank allows the FDIC 

to modify the assessment base for banker’s banks2 and 

2

 Dodd-Frank defines a “banker’s bank” as set forth in 12 U.S.C. 24. 

Under the proposal, the FDIC would exclude from a banker’s bank’s 

assessment base the sum of its average daily balances due from 

Federal Reserve Banks (reserve balances) plus its average daily federal 

funds sold, limited to the sum of the bank’s average daily deposit 

liabilities from its member banks plus its average daily federal funds 

purchased. The proposal would make a banker’s bank that was chartered to provide services only to its parent holding company or entities 

that are directly or indirectly controlled by its parent holding company 

ineligible for the exclusion.

Distribution of the Assessment Base for FDIC-Insured Commercial Banks and Savings Institutions

by Asset Size ($ Billions)*

Data as of September 30, 2010

Asset Size

Number of 

Institutions

Percent of 

Total 

Institutions

Current 

Assessment 

Base**

Percent of 

Current Base

Estimated 

Proposed 

Assessment Base***

Percent of 

Estimated 

Proposed Base

Less than $1 Billion 7,095 91.4% 1,209 15.7% 1,319 10

$1 - $10 Billion 556 7.2% 1,066 13.8% 1,262 10

$10 - $50 Billion 72 0.9% 880 11.4% 1,219 10

$50 - $100 Billion 18 0.2% 758 9.8% 1,082 9

Over $100 Billion 19 0.2% 3,811 49.3% 7,196 59

Total 7,760 100.0% 7,724 100.0% 12,077 100

* Excludes 10 insured U.S. branches of foreign ban

** The current assessment base is derived from domestic deposits

*** The estimates are derived from average quarterly assets as reported on the Call Report or TFR for September 30, 2010. Some institutions currently report their quarterly

average assets as an average of weekly amounts; the proposal requires all insured institutions to calculate their assessment base from quarterly average assets based on 

average daily amounts. The estimates also rely on quarter-end Tier 1 capital as reported for September 30. However, the proposal will require institutions with asset

greater than $1 billion to calculate their assessment base using average month-end Tier 1 capital within the quarter; this average is not yet reported. In addition, the estimated amounts do not account for the proposed adjustments permitted under Dodd-Frank for banker’s banks or “custodial banks,” which will also require new reportin
FDIC Quarterly 16 2010, Volume 4, No. 4

good, and to improve the way the pricing rules account 

for the losses that the FDIC may incur if such an institution fails.

The proposal would eliminate risk categories for large 

institutions. As required by Dodd-Frank, the proposed 

rule would no longer use long-term debt issuer ratings 

to calculate assessment rates for large institutions. The 

FDIC would combine CAMELS ratings and certain 

financial measures into two scorecards—one for most 

large institutions and another for the remaining very 

large institutions that are structurally and operationally 

complex or that pose unique challenges and risks in 

case of failure (highly complex institutions). In general, 

a highly complex institution would be an institution 

(other than a credit card bank) with more than $50 

billion in total assets that is controlled by a parent or 

intermediate parent company with more than $500 

billion in total assets or a processing bank or trust 

company with at least $10 billion in total assets. Like 

the assessment base proposal, the proposed rule for large 

bank pricing would take effect in second quarter 2011.

The following table shows the initial base assessment 

rates, range of possible rate adjustments, and minimum 

and maximum total base rates proposed to take effect in 

second quarter 2011.

Proposed Initial and Total Base Assessment Rates*

Risk

Category 

I

Risk

Category 

II

Risk

Category 

III

Risk

Category 

IV

Large and 

Highly

Complex 

Institutions

Initial base 

assessment rate 5–9 14 23 35 5–35

Unsecured debt 

adjustment** -4.5–0 -5–0 -5–0 -5–0 -5–

Brokered deposit 

adjustment — 0–10 0–10 0–10 0–10

Total base 

assessment rate 2.5–9 9-24 18-33 30-45 2.5–

* Total base assessment rates do not include the proposed depository institution 

debt adjustment. As under current rules, the FDIC would be able to adjust rates

uniformly by up to 3 basis points above or below the base assessment rates 

without seeking public notice and comment

** The unsecured debt adjustment could not exceed the lesser of 5 basis points 

or 50 percent of an institution’s initial base assessment rate (IBAR); thus for 

example, an institution with an IBAR of 5 basis points would have a maximum 

unsecured debt adjustment 2.5 basis points and could not have a total base

assessment rate lower than 2.5 basis point

Author: Kevin Brown, Sr. Financial Analyst

Division of Insurance and Research

(202) 898-6817

Dodd-Frank also required that, for at least five years, 

the FDIC must make available to the public the reserve 

ratio and the DRR using both estimated insured deposits and the new assessment base. As explained in the 

footnotes to the table above, the new assessment base 

will require some changes in reporting, so only an estimate is available at this time. As of September 30, 

2010, the FDIC estimates that the reserve ratio would 

have been -0.07 percent using the new assessment base 

(compared to -0.15 percent using estimated insured 

deposits) and that the proposed 2 percent DRR using 

estimated insured deposits would have been 0.9 percent 

using the estimated new assessment base.

Changes in Assessment Rates

The changes to the assessment base required by DoddFrank necessitate certain changes to assessment rates. 

Because the new assessment base will be larger than the 

current base, the assessment base proposal includes 

proposed new rates that would result in collecting 

approximately the same amount of assessment revenue 

as under the current rate schedule using the existing 

(domestic deposit) base.

In addition, the current risk-based premium rules 

include adjustments to rates for types of funding that 

either pose heightened risk to the DIF or that help to 

offset risk to the DIF. To conform to the new assessment 

base definition, the assessment base proposal would 

recalibrate the rate adjustments for unsecured debt and 

brokered deposits and eliminate the secured liability 

adjustment. The FDIC also proposes to increase the 

assessment rate of an institution that holds unsecured 

debt issued by another insured depository institution (for 

which the issuing institution receives a rate reduction). 

The issuance of unsecured debt by an insured depository 

institution lessens the potential loss to the DIF in the 

event of the institution’s failure. However, when the 

debt is held by another insured depository institution, 

the overall risk to the DIF is not reduced.

At the same time that the FDIC issued its proposed rule 

on the assessment base, it also approved for publication 

a proposed rule amending the risk-based pricing rules 

for large insured depository institutions. The objectives 

of the proposal are to better account for risk at the time 

a large institution assumes the risk, to better differentiate risk among large institutions when conditions are 
FDIC Quarterly 17 2010, Volume 4, No. 4

Quarterly Banking Profile

DIF Reserve Ratios

Percent of Insured Deposits

1.22 1.22 1.19

1.01

0.76

0.36

0.27 0.22

-0.16 -0.39 -0.38 -0.28 -0.15

9/07 3/08 9/08 3/09 9/09 3/10 9/10

Table I-B. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

3rd 

Quarter 

2010

2nd 

Quarter 

2010

1st 

Quarter 

2010

4th 

Quarter 

2009

3rd 

Quarter 

2009

2nd 

Quarter 

2009

1st 

Quarter 

2009

4th 

Quarter 

2008

3rd 

Quarter 

2008

2nd 

Quarter 

2008

1st 

Quarter 

2008

4th 

Quarter 

2007

3rd 

Quarter 

2007

Beginning Fund Balance ..... -$15,247 -$20,717 -$20,862 -$8,243 $10,368 $13,007 $17,276 $34,588 $45,217 $52,843 $52,413 $51,754 $51,227

Changes in Fund Balance:

Assessments earned .............. 3,592 3,242 3,278 3,042 2,965 9,095 2,615 996 881 640 448 239 170

Interest earned on 

investment securities ...... 40 64 62 76 176 240 212 277 526 651 618 585 640

Realized Gain on Sale of

Investments ...................... 0 0 0 0 732 521 136 302 473 0 0 0 0

Operating expenses ............... 414 382 345 379 328 298 266 290 249 256 238 262 243

Provision for insurance 

losses ............................... -3,763 -2,552 3,021 17,766 21,694 11,615 6,637 19,163 11,930 10,221 525 39 132

All other income, 

net of expenses ............... 94 55 22 2,721 308 375 2 15 16 1 0 -2 24

Unrealized gain/(loss) on 

available-for-sale 

securities ......................... 163 -61 149 -313 -770 -957 -331 551 -346 1,559 127 138 68

Total fund balance change ..... 7,238 5,470 145 -12,619 -18,611 -2,639 -4,269 -17,312 -10,629 -7,626 430 659 527

Ending Fund Balance ........... -8,009 -15,247 -20,717 -20,862 -8,243 10,368 13,007 17,276 34,588 45,217 52,843 52,413 51,754

Percent change from 

four quarters earlier ......... NM NM NM NM NM -77.07 -75.39 -67.04 -33.17 -11.73 4.13 4

Reserve Ratio (%) ................. -0.15 -0.28 -0.38 -0.39 -0.16 0.22 0.27 0.36 0.76 1.01

Estimated Insured 

Deposits** .............................. 5,423,482 5,438,508 5,473,098 5,406,672 5,316,023 4,817,782 4,831,728 4,750,780 4,545,194 4,468,086 4,438,255 4,292,211 4,242,607

Percent change from 

four quarters earlier ......... 2.02 12.88 13.27 13.81 16.96 7.83 8.87 10.68 7.13 5.50 4

Domestic Deposits ............... 7,753,335 7,681,265 7,702,422 7,705,329 7,561,309 7,561,998 7,546,999 7,505,409 7,230,328 7,036,267 7,076,719 6,921,678 6,747,998

Percent change from 

four quarters earlier ......... 2.54 1.58 2.06 2.66 4.58 7.47 6.65 8.43 7.15 5.04 5

Number of institutions 

reporting ......................... 7,770 7,840 7,944 8,022 8,109 8,205 8,257 8,315 8,394 8,462 8,505 8,545 8,570

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

9/07 $51,754 $4,242,607

12/07 52,413 4,292,211

3/08 52,843 4,438,255

6/08 45,217 4,468,086

9/08 34,588 4,545,194

12/08 17,276 4,750,780

3/09 13,007 4,831,728

6/09 10,368 4,817,782

9/09 -8,243 5,316,023

12/09 -20,862 5,406,672

3/10 -20,717 5,473,098

6/10 -15,247 5,438,508

9/10 -8,009 5,423,482

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

(dollar figures in millions) 2010  2009** ** 2009 2008 2007 2006 2005

Problem Institutions

Number of institutions ��������������������������������������������������������������� 860 552 702 252 76 50 52

Total assets�������������������������������������������������������������������������������� $379,230 $345,931 $402,782 $159,405 $22,189 $8,265 $6,607

Failed Institutions

Number of institutions ��������������������������������������������������������������� 127 95 140 25 3 0 0

Total assets�������������������������������������������������������������������������������� $83,282 $104,665 $169,709 $371,945 $2,615 $0 $0

Assisted Institutions***

Number of institutions ��������������������������������������������������������������� 0 8 8 5 0 0 0

Total assets�������������������������������������������������������������������������������� $0 $1,917,482 $1,917,482 $1,306,042 $0 $0 $0

* Quarterly financial statement results are unaudited. NM - Not meaningf

** Beginning in the third quarter of 2009, estimated insured deposits reflected the temporary coverage increase to $250,000, which was made permanent by the Dodd Frank Act in 2010

*** Assisted institutions represent five institutions under a single holding company that received assistance in 2008, and eight institutions under a different single holding company that 

received assistance in 2009

**** Through September 30
FDIC Quarterly 18 2010, Volume 4, No. 4

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

(dollar figures in millions) 

September 30, 2010

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks ����������������������������������������������� 6,622 $12,130,344 $6,837,464 $4,613,124

 FDIC-Supervised ������������������������������������������������������������������� 4,381 1,947,075 1,474,340 1,168,071

 OCC-Supervised�������������������������������������������������������������������� 1,415 8,464,632 4,355,932 2,797,825

 Federal Reserve-Supervised������������������������������������������������� 826 1,718,637 1,007,191 647,228

FDIC-Insured Savings Institutions ���������������������������������������������� 1,138 1,252,946 900,571 797,360

 OTS-Supervised Savings Institutions������������������������������������ 740 929,047 662,421 590,973

 FDIC-Supervised State Savings Banks��������������������������������� 398 323,899 238,150 206,387

Total Commercial Banks and Savings Institutions ���������������������� 7,760 13,383,291 7,738,035 5,410,484

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks ������������������������������������������������� 10 28,704 15,300 12,9

Total FDIC-Insured Institutions������������������������������������������������������ 7,770 13,411,994 7,753,335 5,423,482

* Excludes $1.5 trillion in foreign office deposits, which are uninsure

Table IV-B. Distribution of Institutions and Domestic Deposits Among Risk Categories

Quarter Ending June 30, 2010

(dollar figures in billions)

Annual 

Rate in

Basis Points

Number of 

Institutions

Percent 

of Total 

Institutions

Domestic 

Deposits

Percent 

of Total 

Domestic 

Deposits

Risk Category I

7.00–12.00 1,746 22.27 $543 

12.01–14.00 1,560 19.90 1,655 2

14.01–15.99 1,890 24.11 2,053 2

16.00–24.00 387 4.94 422 

Risk Category II

17.00–22.00 1,140 14.54 1,963 2

22.01–43.00 268 3.42 722 

Risk Category III

27.00–32.00 488 6.22 160 

32.01–58.00 166 2.12 89 

Risk Category IV 40.00–45.00 128 1.63 47 

45.01–77.50 67 0.85 29 

Note: Institutions are categorized based on supervisory ratings, debt ratings and financial data as of June 30, 2010
FDIC Quarterly 19 2010, Volume 4, No. 4

Quarterly Banking Profile

FDIC Responds to Market Disruptions with TLGP

The FDIC Board approved the Temporary Liquidity 

Guarantee Program (TLGP) on October 13, 2008, as 

major disruptions in credit markets blocked access to 

liquidity for financial institutions.1 The TLGP improved 

access to liquidity through two programs: the Transaction 

Account Guarantee Program (TAGP), which fully guarantees noninterest-bearing transaction deposit accounts 

above $250,000, regardless of dollar amount; and the 

Debt Guarantee Program (DGP), which guarantees eligible senior unsecured debt issued by eligible institutions.

All insured depository institutions were eligible to participate in the TAGP. Institutions eligible to participate in 

the DGP were insured depository institutions, U.S. bank 

holding companies, certain U.S. savings and loan holding companies, and other affiliates of insured depository 

institutions that the FDIC designated as eligible entities.

FDIC Extends Guarantee Programs

Although financial markets improved significantly in 

the first half of 2009, portions of the industry were still 

affected by the recent economic turmoil. To facilitate 

the orderly phase-out of the TLGP, and to continue 

access to FDIC guarantees where they were needed, the 

FDIC Board extended both the DGP and TAGP.

On March 17, 2009, the Board of Directors of the FDIC 

voted to extend the deadline for issuance of guaranteed 

debt from June 30, 2009, to October 31, 2009, and 

extended the expiration date of the guarantee to the 

earlier of maturity of the debt or December 31, 2012, 

from June 30, 2012. The FDIC imposed a surcharge on 

debt issued with a maturity of one year or more beginning in second quarter 2009.2

 The Board adopted a 

final rule on October 20, 2009, that allowed the DGP 

to expire on October 31, 2009.3

1

 The FDIC invoked the systemic risk exception pursuant to section 

141 of the Federal Deposit Improvement Act of 1991, 12 U.S.C 

1823(c)(4) on October 13, 2008. For further information on the TLGP, 

see http://www.fdic.gov/regulations/resources/TLGP/index.html. 2

 See http://www.fdic.gov/news/board/Mar1709rule.pdf. 3

 See http://www.fdic.gov/regulations/laws/federal/2009/09finalAD37

Oct23.pdf. 

A final rule extending the TAGP six months, to June 

30, 2010, was adopted on August 26, 2009. Entities 

participating in the TAGP had the opportunity to opt 

out of the extended program. Depository institutions 

that remained in the extended program were subject 

to increased fees that were adjusted to reflect the institution’s risk.4

On June 22, 2010, the FDIC adopted a final rule 

extending the TAGP for another six months, through 

December 31, 2010. The final rule is almost identical to 

an interim rule adopted on April 13. Under the rule, 

the FDIC could extend the program for an additional 

12 months without further rulemaking.5

Noninterest-Bearing Transaction Accounts 

Fully Insured under Dodd-Frank Reform Bill

According to an amendment to the Dodd-Frank 

Wall Street Reform and Consumer Protection Act, 

noninterest-bearing transaction accounts at all FDICinsured institutions will be fully insured for two years. 

This amendment takes effect on December 31, 2010. 

Coverage of noninterest-bearing transaction accounts is 

separate from the regular insurance limit of $250,000. 

Assessments for noninterest-bearing transaction 

accounts will be included in the regular assessments 

for insured institutions.6

Program Funded by Industry Fees and Assessments

The TLGP does not rely on taxpayer funding or the 

Deposit Insurance Fund. Both the TAGP and the DGP 

are paid for by direct user fees. Institutions participating 

in the TAGP through year-end 2009 were assessed an 

annual fee of 10 basis points. Fees for qualifying noninterest-bearing transaction accounts guaranteed between 

January 1, 2010, and June 30, 2010, were based on the 

4

 See http://www.fdic.gov/news/board/aug26no3.pdf. The final rule 

requires that interest rates on qualifying NOW accounts offered by 

banks participating in the program be reduced to 0.25 percent from 

0.50 percent. The rule also requires TAG assessment reporting to be 

based on average daily balances but makes no changes to the assessment rates for participating institutions. 

5

 See http://www.fdic.gov/news/news/press/2010/pr10139.html. 6

 See http://www.fdic.gov/regulations/reform/summary.html. 

■ Debt Guarantee Program Ended October 31, 2009

■ Transaction Account Guarantee Program Extended to December 31, 2010

■ $107 Billion Guaranteed in Transaction Accounts over $250,000

■ $287 Billion Outstanding in Debt Guarantee Program

TEMPORARY LIQUIDITY GUARANTEE PROGRAM
FDIC Quarterly 20 2010, Volume 4, No. 4

Table I-C. Participation in Temporary Liquidity Guarantee Program

September 30, 2010 Total 

Eligible Entities

Number 

Opting In

Percent 

Opting In

Transaction Account Guarantee Program Extension to December 31, 2010

Depository Institutions with Assets <= $10 Billion�������������������������������������������������� 7,659 5,696 74.4

Depository Institutions with Assets > $10 Billion ���������������������������������������������������� 110 35 31.8

 Total Depository Institutions*���������������������������������������������������������������������������� 7,769 5,731 73.8

Debt Guarantee Program

Depository Institutions with Assets <= $10 Billion�������������������������������������������������� 7,659 4,029 52.6

Depository Institutions with Assets > $10 Billion ���������������������������������������������������� 110 97 88.2

 Total Depository Institutions*���������������������������������������������������������������������������� 7,769 4,126 53.1

Bank and Thrift Holding Companies and Non-Insured Affiliates ��������������������������� 5,992 3,363 56.1

 All Entities���������������������������������������������������������������������������������������������������������� 13,761 7,489 54.4

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

$250,000, fewer than one-third the number of accounts 

reported at year-end 2009. These deposit accounts 

totaled $155 billion, of which $107 billion was guaranteed under the TAGP. More than 5,100 FDIC-insured 

institutions reported noninterest-bearing transaction 

accounts over $250,000 in value.

$287 Billion in FDIC-Guaranteed Debt Was 

Outstanding at September 30, 2010

Sixty-eight financial entities—40 insured depository 

institutions and 28 bank and thrift holding companies 

and nonbank affiliates—had $287 billion in guaranteed 

debt outstanding at the end of third quarter 2010. Some 

banking groups issued FDIC-guaranteed debt at both 

the subsidiary and holding company level, but most 

guaranteed debt was issued by holding companies or 

nonbank affiliates of depository institutions. Bank and 

thrift holding companies and nonbank affiliates issued 

84 percent of FDIC-guaranteed debt outstanding at 

September 30, 2010.

Debt outstanding at September 30, 2010, had longer 

terms at issuance, compared to debt outstanding at yearend 2008. Less than 1 percent of debt outstanding 

matures in one year or less, compared to 52 percent at 

year-end 2008; and 85 percent matures more than two 

years after issuance, compared to 39 percent at December 31, 2008. Among types of debt instruments, 92 

percent was in medium-term notes, compared to 44 

percent at year-end. The share of outstanding debt in 

commercial paper fell to less than 0.01 percent from 

43 percent at year-end 2008.

Author: Katherine Wyatt

Chief, Financial Analysis Section

Division of Insurance and Research

(202) 898-6755

participating entity’s risk category assignment under the 

FDIC’s risk-based premium system. Annualized fees are 

15, 20, or 25 basis points, depending on an institution’s 

risk category.

Fees for participation in the DGP were based on the 

maturity of debt issued and ranged from 50 to 100 basis 

points (annualized). A surcharge was imposed on debt 

issued with a maturity of one year or greater after April 

1, 2009. For debt that was not issued under the extension, that is, debt issued on or before June 30, 2009, and 

maturing on or before June 30, 2012, surcharges were 

10 basis points (annualized) on debt issued by insured 

depository institutions and 20 basis points (annualized) 

on debt issued by other participating entities. For debt 

issued under the extension, that is, debt issued after 

June 30, 2009, or debt that matures after June 30, 2012, 

surcharges were 25 basis points (annualized) on debt 

issued by insured depository institutions and 50 basis 

points (annualized) on debt issued by other participating entities. As of March 31, 2010, fees totaling $10.4 

billion had been assessed under the DGP.

A Majority of Eligible Entities Have Chosen to 

Participate in the TLGP

About 74 percent of FDIC-insured institutions opted in 

to the TAGP extension through December 31, 2010. 

More than half of all eligible entities elected to opt in 

to the DGP. Lists of institutions that opted out of the 

guarantee programs are posted at http://www.fdic.gov/

regulations/resources/TLGP/optout.html. 

$107 Billion in Transaction Accounts over 

$250,000 Guaranteed

According to third quarter 2010 Call and Thrift Financial Reports, insured institutions reported 190,817 

noninterest-bearing transaction accounts over 
FDIC Quarterly 21 2010, Volume 4, No. 4

Quarterly Banking Profile

Table V-C. Fees Assessed Under TLGP

(dollar figures in millions)

Debt Guarantee Program

Transaction Account 

Guarantee Program*

Fees Assessed Surcharges Total Fee Amount Fees Collected

Fourth Quarter 2008�������������������������������������������������������������� $3,437 $3,437

First Quarter 2009 ����������������������������������������������������������������� 3,433 3,433 90

Second Quarter 2009 ������������������������������������������������������������ 1,413 385 1,797 179

Third Quarter 2009 ���������������������������������������������������������������� 691 280 971 182

Fourth Quarter 2009�������������������������������������������������������������� 503 207 709 188

First Quarter 2010** 14 14 207

Second Quarter 2010 ������������������������������������������������������������ 115

Third Quarter 2010����������������������������������������������������������������� 111

Total��������������������������������������������������������������������������������� $9,491 $872 $10,363 $961

* Pro-rated payment in arrears

** A review of data systems led us to recognize a nominal fee amount that had been dropped in error from previously reported amounts

Table VI-C. Term at Issuance of Debt Instruments Outstanding

September 30, 2010

(dollar figures in millions)

Commercial 

Paper

Interbank

Eurodollar

Deposits

Medium 

Term Notes

Other 

Interbank 

Deposits

Other 

Senior 

Unsecured

Debt

Other 

Term Note All Debt

Share 

by Term

Term at Issuance

90 days or less�������������������������������������� $0 $0 $0 $0 $0 $0 $0 0.0%

91-180 days������������������������������������������� 0 0 0 0 0 0 0 0.0%

181-364 days����������������������������������������� 0 0 0 9 0 0 9 0.0%

1-2 years ����������������������������������������������� 0 0 43,376 2 0 771 44,148 15.4%

Over 2-3 years �������������������������������������� 0 0 80,447 0 3,352 6,003 89,801 31.3%

Over 3 years������������������������������������������ 1 0 139,981 4 3,713 9,151 152,849 53.3%

Total������������������������������������������������ 1 0 263,803 14 7,064 15,925 286,808

Share of Total���������������������������������������� 0.0% 0.0% 92.0% 0.0% 2.5% 5.6%

Table IV-C. Debt Outstanding in Guarantee Program 

September 30, 2010

(dollar figures in millions) Number Debt Outstanding Cap* for Group

Debt Outstanding 

Share of Cap

Insured Depository Institutions

Assets <= $10 Billion ������������������������������������������������������� 27 $1,586 $1,665 95.3

Assets > $10 Billion ��������������������������������������������������������� 13 44,826 112,817 39.7

Bank and Thrift Holding Companies,

Noninsured Affiliates�������������������������������������������������������������� 28 240,395 387,479 62.0

All Issuers����������������������������������������������������������������������� 68 286,808 501,961 57.1

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

September 30, 2008. The cap for a depository institution with no senior unsecured debt outstanding at September 30, 2008, is set at 2 percent of total liabilitie

See http://www2.fdic.gov/qbp/2008dec/tlgp2c.html for more informat

Table III-C. Transaction Account Guarantee Program

(dollar figures in millions) Sep. 30, 

2009

Dec. 31, 

2009

Mar. 31, 

2010

June 30, 

2010

Sep. 30, 

2010

% Change 

10Q2-10Q3

Number of Noninterest-Bearing Transaction Accounts 

over $250,000�������������������������������������������������������������� 646,955 687,430 308,843 320,029 190,817 -40.4

Amount in Noninterest-Bearing Transaction Accounts 

over $250,000�������������������������������������������������������������� $927,511 $1,008,508 $355,395 $344,576 $155,269 -54.9

Amount Guaranteed ���������������������������������������������������������� $765,772 $836,651 $278,184 $264,569 $107,565 -59.3

Table II-C. Cap on FDIC-Guaranteed Debt for Opt-In Entities

Seotember 30, 2010

(dollar figures in millions)

Opt-In Entities with Senior Unsecured

Debt Outstanding at 9/30/2008

Opt-In Depository Institutions 

with no Senior Unsecured

Debt at 9/30/2008

Number 

 Debt Amount 

as of 

9/30/2008 Initial Cap Number

2% Liabilities 

as of 

9/30/2008

Total 

Entities

Total Initial 

Cap 

Depository Institutions with Assets 

<= $10 Billion*������������������������������������ 110 $3,416 $4,270 3,919 $29,285 4,029 $33,555

Depository Institutions with Assets 

> $10 Billion*�������������������������������������� 39 269,228 336,535 58 23,578 97 360,113

Bank and Thrift Holding Companies, 

Noninsured Affiliates�������������������������������� 81 397,714 497,143 3,282 N/A 3,363 497,143

Total��������������������������������������������������������� 230 670,358 837,948 7,259 52,863 7,489 890,811

* Depository institutions include insured branches of foreign banks (IBAs). N/A - Not applicab
FDIC Quarterly 22 2010, Volume 4, No. 4

periods, divided by the total number of periods). For “poolingof-interest” mergers, the assets of the acquired institution(s) 

are included in average assets since the year-to-date income 

includes the results of all merged institutions. No adjustments 

are made for “purchase accounting” mergers. Growth rates 

represent the percentage change over a 12-month period in 

totals for institutions in the base period to totals for institutions in the current period.

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

institution’s home state. In addition, institutions may relocate 

across state lines or change their charters, resulting in an 

inter-regional or inter-industry migration, e.g., institutions 

can move their home offices between regions, and savings 

institutions can convert to commercial banks or commercial 

banks may convert to savings institutions.

ACCOUNTING CHANGES

Extended Net Operating Loss Carryback Period – The Worker, 

Homeownership, and Business Assistance Act of 2009, which 

was enacted on November 6, 2009, permits banks and other 

businesses, excluding those banking organizations that received 

capital from the U.S. Treasury under the Troubled Asset Relief 

Program, to elect a net operating loss carryback period of 

three, four, or five years instead of the usual carryback period 

of two years for any one tax year ending after December 31, 

2007, and beginning before January 1, 2010. For calendar year 

banks, this extended carryback period applies to either the 

2008 or 2009 tax year. The amount of the net operating loss 

that can be carried back to the fifth carryback year is limited 

to 50 percent of the available taxable income for that fifth 

year, but this limit does not apply to other carryback years.

Under generally accepted accounting principles, banks may 

not record the effects of this tax change in their balance 

sheets and income statements for financial and regulatory 

reporting purposes until the period in which the law was 

enacted, i.e., the fourth quarter of 2009. Therefore, banks 

should recognize the effects of this fourth quarter 2009 tax 

law change on their current and deferred tax assets and liabilities, including valuation allowances for deferred tax assets, in 

their Call Reports for December 31, 2009. Banks should not 

amend their Call Reports for prior quarters for the effects of 

the extended net operating loss carryback period.

The American Recovery and Reinvestment Act of 2009, 

which was enacted on February 17, 2009, permits qualifying 

small businesses, including FDIC-insured institutions, to elect 

a net operating loss carryback period of three, four, or five 

years instead of the usual carryback period of two years for any 

tax year ending in 2008 or, at the small business’s election, 

any tax year beginning in 2008. Under generally accepted 

accounting principles, institutions may not record the effect of 

this tax change in their balance sheets and income statements 

for financial and regulatory reporting purposes until the period 

in which the law was enacted, i.e., the first quarter of 2009.

Troubled Debt Restructurings – Many institutions are restructuring or modifying the terms of loans to provide payment relief 

for those borrowers who have suffered deterioration in their 

financial condition. Such loan restructurings may include, but 

are not limited to, reductions in principal or accrued interest, 

reductions in interest rates, and extensions of the maturity 

date. Modifications may be executed at the original contractuNotes 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 FDICinsured institutions, both commercial banks and savings institutions. Tables VI-A (Derivatives) and VII-A (Servicing, 

Securitization, and Asset Sales Activities) aggregate information only for insured commercial banks and state-chartered 

savings banks that file quarterly Call Reports. Table VIII-A 

(Trust Services) aggregates Trust asset and income information collected annually from all FDIC-insured institutions. 

Some tables are arrayed by groups of FDIC-insured institutions based on predominant types of asset concentration, 

while other tables aggregate institutions by asset size and 

geographic region. Quarterly and full-year data are provided 

for selected indicators, including aggregate condition and 

income data, performance ratios, condition ratios, and structural changes, as well as past due, noncurrent, and charge-off 

information for loans outstanding and other assets.

Tables I-B through IV-B.

A separate set of tables (Tables I-B through IV-B) provides 

comparative quarterly data related to the Deposit Insurance 

Fund (DIF), problem institutions, failed/assisted institutions, 

estimated FDIC-insured deposits, as well as assessment rate 

information. Depository institutions that are not insured by 

the FDIC through the DIF are not included in the FDIC 

Quarterly Banking Profile. U.S. branches of institutions headquartered in foreign countries and non-deposit trust companies 

are not included unless otherwise indicated. Efforts are made 

to obtain financial reports for all active institutions. However, 

in some cases, final financial reports are not available for institutions that have closed or converted their charters.

DATA SOURCES

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Consolidated Reports of 

Condition and Income (Call Reports) and the OTS Thrift 

Financial Reports submitted by all FDIC-insured depository 

institutions. This information is stored on and retrieved from 

the FDIC’s Research Information System (RIS) data base.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, 

while their subsidiary financial institutions are still required 

to file separate reports. Data from subsidiary institution 

reports are included in the Quarterly Banking Profile tables, 

which can lead to double-counting. No adjustments are made 

for any double-counting of subsidiary data. Additionally, 

certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting and 

accounting requirements of the FFIEC Call Reports.

All asset and liability figures used in calculating performance 

ratios represent average amounts for the period (beginning-ofperiod amount plus end-of-period amount plus any interim 
FDIC Quarterly 23 2010, Volume 4, No. 4

Quarterly Banking Profile

Financial Assets (formerly paragraph 16 of FASB Statement 

No. 115, Accounting for Certain Investments in Debt and Equity 

Securities); FASB Staff Position (FSP) FAS 115-1 and FAS 

124-1, The Meaning of Other-Than-Temporary Impairment and 

Its Application to Certain Investments; FSP FAS 115-2 and FAS 

124-2, Recognition and Presentation of Other-Than-Temporary 

Impairments; paragraph 6 of Accounting Principles Board 

Opinion No. 18, The Equity Method of Accounting for Investments in Common Stock; Emerging Issues Task Force (EITF) 

Issue No. 99-20, Recognition of Interest Income and Impairment 

on Purchased Beneficial Interests and Beneficial Interests That 

Continue to Be Held by a Transferor in Securitized Financial 

Assets; and FSP EITF 99-20-1, Amendments to the Impairment 

Guidance of EITF Issue No. 99-20. Under ASC Topic 320, if 

an institution intends to sell a debt security or it is more likely 

than not that it will be required to sell the debt security before 

recovery of its amortized cost basis, an other-than-temporary 

impairment has occurred and the entire difference between 

the security’s amortized cost basis and its fair value at the balance sheet date must be recognized in earnings. In these cases, 

the fair value of the debt security would become its new amortized cost basis. In addition, under ASC Topic 320, if the 

present value of cash flows expected to be collected on a debt 

security is less than its amortized cost basis, a credit loss exists. 

In this situation, if an institution does not intend to sell the 

security and it is not more likely than not that the institution 

will be required to sell the debt security before recovery of its 

amortized cost basis less any current-period credit loss, an other-than-temporary impairment has occurred. The amount of 

the total other-than-temporary impairment related to the 

credit loss must be recognized in earnings, but the amount of 

the total impairment related to other factors must be recognized in other comprehensive income, net of applicable taxes.

ASC Topic 805 (formerly Business Combinations and Noncontrolling 

(Minority) Interests) – In December 2007, the FASB issued 

Statement No. 141 (Revised), Business Combinations FAS 

141(R), and Statement No. 160, Noncontrolling Interests in 

Consolidated Financial Statements (FAS 160). Under FAS 

141(R), all business combinations, including combinations of 

mutual entities, are to be accounted for by applying the acquisition method. FAS 160 defines a noncontrolling interest, also 

called a minority interest, as the portion of equity in an institution’s subsidiary not attributable, directly or indirectly, to the 

parent institution. FAS 160 requires an institution to clearly 

present in its consolidated financial statements the equity 

ownership in and results of its subsidiaries that are attributable 

to the noncontrolling ownership interests in these subsidiaries. 

FAS 141(R) applies prospectively to business combinations for 

which the acquisition date is on or after the beginning of the 

first annual reporting period beginning on or after December 

15, 2008. Similarly, FAS 160 is effective for fiscal years beginning on or after December 15, 2008. Thus, for institutions 

with calendar year fiscal years, these two accounting standards 

take effect in 2009. Beginning in March 2009, Institution 

equity capital and Noncontrolling interests are separately 

reported in arriving at Total equity capital and Net income.

ASC Topic 820 (formerly FASB Statement No. 157 Fair Value 

Measurements issued in September 2006) and ASC Topic 825 (formerly FASB Statement No. 159 The Fair Value Option for Financial 

Assets and Financial Liabilities) issued in February 2007 – both are 

effective in 2008 with early adoption permitted in 2007. FAS 

157 defines fair value and establishes a framework for developing fair value estimates for the fair value measurements that 

al interest rate on the loan, a current market interest rate, or a 

below-market interest rate. Many of these loan modifications 

meet the definition of a troubled debt restructuring (TDR).

The TDR accounting and reporting standards are set forth in 

ASC Subtopic 310-40, Receivables–Troubled Debt 

Restructurings by Creditors (formerly FASB Statement No. 

15, “Accounting by Debtors and Creditors for Troubled Debt 

Restructurings,” as amended). This guidance specifies that a 

restructuring of a debt constitutes a TDR if, at the date of 

restructuring, the creditor for economic or legal reasons related to a debtor’s financial difficulties grants a concession to 

the debtor that it would not otherwise consider.

In the Call Report, until a loan that is a TDR is paid in full or 

otherwise settled, sold, or charged off, it must be reported in 

the appropriate loan category, as well as identified as a performing TDR loan, if it is in compliance with its modified 

terms. If a TDR is not in compliance with its modified terms, 

it is reported as a past due and nonaccrual loan in the appropriate loan category, as well as distinguished from other past 

due and nonaccrual loans. To be considered in compliance 

with its modified terms, a loan that is a TDR must not be in 

nonaccrual status and must be current or less than 30 days past 

due on its contractual principal and interest payments under 

the modified repayment terms. A loan restructured in a TDR is 

an impaired loan. Thus, all TDRs must be measured for impairment in accordance with ASC Subtopic 310-10, Receivables – 

Overall (formerly FASB Statement No. 114, “Accounting by 

Creditors for Impairment of a Loan,” as amended), and the 

Call report Glossary entry for “Loan Impairment.”

Accounting for Loan Participations – Amended ASC Topic 860 

(formerly FAS 166) modified the criteria that must be met in 

order for a transfer of a portion of a financial asset, such as a 

loan participation, to qualify for sale accounting. These 

changes apply to transfers of loan participations on or after the 

effective date of amended ASC Topic 860 (discussed above), 

including advances under lines of credit that are transferred on 

or after the effective date of amended ASC Topic 860 even if 

the line of credit agreements were entered into before this 

effective date. Therefore, banks with a calendar year fiscal year 

must account for transfers of loan participations on or after 

January 1, 2010, in accordance with amended ASC Topic 

860. In general, loan participations transferred before the 

effective date of amended ASC Topic 860 (January 1, 2010, 

for calendar year banks) are not affected by this new accounting standard. Therefore, loan participations transferred before 

the effective date of amended ASC Topic 860 that were properly accounted for as sales under former FASB Statement No. 

140 will continue to be reported as having been sold.

Under amended ASC Topic 860, if a transfer of a portion of 

an entire financial asset meets the definition of a “participating interest,” then the transferor (normally the lead lender) 

must evaluate whether the transfer meets all of the conditions 

in this accounting standard to qualify for sale accounting.

Other-Than-Temporary Impairment – When the fair value of an 

investment in a debt or equity security is less than its cost 

basis, the impairment is either temporary or other-than-temporary. To determine whether the impairment is other-thantemporary, an institution must apply other pertinent guidance 

in ASC Topic 320 , Investments-Debt and Equity Securities–

Overall; ASC Subtopic 325-20, Investments-Other–Cost 

Method Investments; and ASC Subtopic 325-40, 

Investments-Other–Beneficial Interests in Securitized 
FDIC Quarterly 24 2010, Volume 4, No. 4

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, 

ASC Topic 860 (formerly 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 buy-back option. The banking agencies clarified in May 

2005 that all GNMA loans that are rebooked because of 

delinquency should be reported as past due according to their 

contractual terms.

ASC Topics 860 & 810 (formerly FASB Statements 166 & 167) – 

In June 2009, the FASB issued Statement No. 166, 

Accounting for Transfers of Financial Assets (FAS 166), and 

Statement No. 167, Amendments to FASB Interpretation 

No. 46(R) (FAS 167), which change the way entities account 

for securitizations and special purpose entities. FAS 166 

revised FASB Statement No. 140, Accounting for Transfers 

and Servicing of Financial Assets and Extinguishments of 

Liabilities, by eliminating the concept of a “qualifying specialpurpose entity,” creating the concept of a “participating interest,” changing the requirements for derecognizing financial 

assets, and requiring additional disclosures. FAS 167 revised 

FASB Interpretation No. 46(R), Consolidation of Variable 

Interest Entities, by changing how a bank or other company 

determines when an entity that is insufficiently capitalized or 

is not controlled through voting or similar rights, i.e., a “variable interest entity” (VIE), should be consolidated. Under 

FAS 167, a bank must perform a qualitative assessment to 

determine whether its variable interest or interests give it a 

controlling financial interest in a VIE. If a bank’s variable 

interest or interests provide it with the power to direct the 

most significant activities of the VIE, and the right to receive 

benefits or the obligation to absorb losses that could potentially be significant to the VIE, the bank is the primary beneficiary of, and therefore must consolidate, the VIE.

Both FAS 166 and FAS 167 take effect as of the beginning of 

each bank’s first annual reporting period that begins after 

November 15, 2009, for interim periods therein, and for interim and annual reporting periods thereafter (i.e., as of January 

1, 2010, for banks with a calendar year fiscal year). Earlier 

application is prohibited. Banks are expected to adopt FAS 

166 and FAS 167 for Call Report purposes in accordance with 

the effective date of these two standards. Also, FAS 166 has 

modified the criteria that must be met in order for a transfer of 

a portion of a financial asset, such as a loan participation, to 

qualify for sale accounting. These changes apply to transfers of 

loan participations on or after the effective date of FAS 166. 

Therefore, banks with a calendar year fiscal year must account 

for transfers of loan participations on or after January 1, 2010, 

in accordance with FAS 166. In general, loan participations 

transferred before the effective date of FAS 166 (January 1, 

2010, for calendar year banks) are not affected by this new 

accounting standard and pre-FAS 166 participations that were 

properly accounted for as sales under FASB Statement No. 

140 will continue to be reported as having been sold.

ASC Topic 740 (formerly FASB Interpretation No. 48 on Uncertain 

Tax Positions) – FASB Interpretation No. 48, Accounting for 

are already required or permitted under other standards. 

FASB FSP 157-4, issued in April 2009, provides additional 

guidance for estimating fair value in accordance with FAS 

157 when the volume and level of activity for the asset or liability have significantly decreased. The FSP also includes 

guidance on identifying circumstances that indicate a transaction is not orderly. The FSP is effective for interim and annual reporting periods ending after June 15, 2009, with early 

adoption permitted for periods ending after March 15, 2009.

Fair value continues to be used for derivatives, trading securities, and available-for-sale securities. Changes in fair value go 

through earnings for trading securities and most derivatives. 

Changes in the fair value of available-for-sale securities are 

reported in other comprehensive income. Available-for-sale 

securities and held-to-maturity debt securities are written down 

to fair value if impairment is other than temporary and loans 

held for sale are reported at the lower of cost or fair value.

FAS 159 allows institutions to report certain financial assets 

and liabilities at fair value with subsequent changes in fair 

value included in earnings. In general, an institution may 

elect the fair value option for an eligible financial asset or liability when it first recognizes the instrument on its balance 

sheet or enters into an eligible firm commitment.

ASC Topic 715 (formerly FASB Statement No. 158 Employers’ 

Accounting for Defined Benefit Pension and Other Postretirement 

Plans) – issued in September 2006 requires a bank to recognize 

in 2007, and subsequently, the funded status of its postretirement plans on its balance sheet. An overfunded plan is recognized as an asset and an underfunded plan is recognized as a 

liability. An adjustment is made to equity as accumulated 

other comprehensive income (AOCI) upon application of 

FAS 158, and AOCI is adjusted in subsequent periods as net 

periodic benefit costs are recognized in earnings.

ASC Topic 860 (formerly 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.

ASC Topic 815 (formerly FASB Statement No. 155 Accounting for 

Certain Hybrid Financial Instruments) – issued in February 2006, 

requires bifurcation of certain derivatives embedded in interests in securitized financial assets and permits fair value measurement (i.e., a fair value option) for any hybrid financial 

instrument that contains an embedded derivative that would 

otherwise require bifurcation under FASB Statement No. 133, 

Accounting for Derivative Instruments and Hedging Activities

(FAS 133). In addition, FAS 155 clarifies which interest-only 

and principal-only strips are not subject to FAS 133.

Purchased Impaired Loans and Debt Securities – ASC Topic 310 

(formerly 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 
FDIC Quarterly 25 2010, Volume 4, No. 4

Quarterly Banking Profile

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other 

seller-provided credit enhancements.

Capital Purchase Program (CPP) – As announced in October 

2008 under the TARP, the Treasury Department purchase of 

noncumulative perpetual preferred stock and related warrants 

that is treated as Tier 1 capital for regulatory capital purposes 

is included in “Total equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued 

by publicly-traded banks are reflected as well in “Surplus.” 

Warrants to purchase common stock or noncumulative preferred stock of not-publicly-traded bank stock classified in a 

bank’s balance sheet as “Other liabilities.”

Construction and development loans – includes loans for all 

property types under construction, as well as loans for land 

acquisition and development.

Core capital – common equity capital plus noncumulative perpetual preferred stock plus minority interest in consolidated 

subsidiaries, less goodwill and other ineligible intangible 

assets. The amount of eligible intangibles (including servicing 

rights) included in core capital is limited in accordance with 

supervisory capital regulations.

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets.

Credit enhancements – techniques whereby a company attempts 

to reduce the credit risk of its obligations. Credit enhancement may be provided by a third party (external credit 

enhancement) or by the originator (internal credit enhancement), and more than one type of enhancement may be 

associated with a given issuance.

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

Association (SAIF) Insurance Funds were merged in 2006 by 

the Federal Deposit Insurance Reform Act to form the DIF.

Derivatives notional amount – The notional, or contractual, 

amounts of derivatives represent the level of involvement in 

the types of derivatives transactions and are not a quantification of market risk or credit risk. Notional amounts represent 

the amounts used to calculate contractual cash flows to be 

exchanged.

Derivatives credit equivalent amount – the fair value of the 

derivative plus an additional amount for potential future credit exposure based on the notional amount, the remaining 

maturity and type of the contract.

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 

Uncertainty in Income Taxes (FIN 48), was issued in June 

2006 as an interpretation of FASB Statement No. 109, 

Accounting for Income Taxes. Under FIN 48, the term “tax 

position” refers to “a position in a previously filed tax return 

or a position expected to be taken in a future tax return that 

is reflected in measuring current or deferred income tax assets 

and liabilities.” FIN 48 further states that a “tax position can 

result in a permanent reduction of income taxes payable, a 

deferral of income taxes otherwise currently payable to future 

years, or a change in the expected realizability of deferred tax 

assets.” FIN 48 was originally issued effective for fiscal years 

beginning after December 15, 2006. Banks must adopt FIN 48 

for Call Report purposes in accordance with the interpretation’s effective date except as follows. On December 31, 2008, 

the FASB decided to defer the effective date of FIN 48 for 

eligible nonpublic enterprises and to require those enterprises 

to adopt FIN 48 for annual periods beginning after December 

15, 2008. A nonpublic enterprise under certain conditions is 

eligible for deferral, even if it opted to issue interim or quarterly financial information in 2007 under earlier guidance 

that reflected the adoption of FIN 48.

ASC Topic 718 (formerly FASB Statement No. 123 (Revised 2004) 

and Share-Based Payments – refer to previously published 

Quarterly Banking Profile notes: http://www2.fdic.gov/

qbp/2008dec/qbpnot.html

ASC Topic 815 (formerly FASB Statement No. 133 Accounting for 

Derivative Instruments and Hedging Activities) – refer to previously published Quarterly Banking Profile notes: 

http://www2.fdic.gov/qbp/2008dec/qbpnot.html

Accounting Standards Codification – In June 2009, the FASB 

issued Statement No. 168, The FASB Accounting Standards 

CodificationTM and the Hierarchy of Generally Accepted 

Accounting Principles (FAS 168), to establish the FASB 

Codification as the single source of authoritative nongovernmental U.S. generally accepted accounting principles (U.S. 

GAAP). The FASB Codification reorganizes existing U.S. 

accounting and reporting standards issued by the FASB and 

other related private-sector standard setters, and all guidance 

contained in the FASB Codification carries an equal level of 

authority. All previously existing accounting standards documents are superseded as described in FAS 168. All other 

accounting literature not included in the FASB Codification 

is nonauthoritative. The FASB Codification can be accessed 

at http://asc.fasb.org/. The FASB Codification is effective for 

interim and annual periods ending after September 15, 2009. 

This an FFIEC reference guide at http://www.ffiec.gov/pdf/

ffiec_forms/CodificationIntroduction_201006.pdf.

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

estate, investment in unconsolidated subsidiaries, customers’ 

liability on acceptances outstanding, assets held in trading 

accounts, federal funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid 

deposit insurance assessments, and other assets.

All other liabilities – bank’s liability on acceptances, limited-life 

preferred stock, allowance for estimated off-balance-sheet credit losses, fair market value of derivatives, and other liabilities.

Assessment base – assessable deposits consist of DIF deposits 

(deposits insured by the FDIC Deposit Insurance Fund) in 

banks’ domestic offices with certain adjustments.
FDIC Quarterly 26 2010, Volume 4, No. 4

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.

New charters – insured institutions filing quarterly financial 

reports for the first time.

Other borrowed funds – federal funds purchased, securities sold 

with agreements to repurchase, demand notes issued to the 

U.S. Treasury, FHLB advances, other borrowed money, mortgage indebtedness, obligations under capitalized leases and 

trading liabilities, less revaluation losses on assets held in 

trading accounts.

Other real estate owned – primarily foreclosed property. Direct 

and indirect investments in real estate ventures are excluded. 

The amount is reflected net of valuation allowances. For 

institutions that file a Thrift Financial Report (TFR), the 

valuation allowance subtracted also includes allowances for 

other repossessed assets. Also, for TFR filers the components 

of other real estate owned are reported gross of valuation 

allowances.

Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their 

losses) compared to the same period a year earlier.

“Problem” institutions – federal regulators assign a composite 

rating to each financial institution, based upon an evaluation 

of financial and operational criteria. The rating is based on a 

scale of 1 to 5 in ascending order of supervisory concern. 

“Problem” institutions are those institutions with financial, 

operational, or managerial weaknesses that threaten their 

continued financial viability. Depending upon the degree of 

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

“5.” The number and assets of “problem” institutions are 

seller is obligated to purchase or sell the variable or index at 

the discretion of the buyer of the contract.

Swaps – obligations between two parties to exchange a 

series of cash flows at periodic intervals (settlement dates), 

for a specified period. The cash flows of a swap are either 

fixed, or determined for each settlement date by multiplying 

the quantity (notional principal) of the underlying variable 

or index by specified reference rates or prices. Except for 

currency swaps, the notional principal is used to calculate 

each payment but is not exchanged.

Derivatives underlying risk exposure – the potential exposure 

characterized by the level of banks’ concentration in particular underlying instruments, in general. Exposure can result 

from market risk, credit risk, and operational risk, as well as, 

interest rate risk.

Domestic deposits to total assets – total domestic office deposits 

as a percent of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn 

interest or dividend income.

Efficiency ratio – Noninterest expense less amortization of 

intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net 

operating revenues that are absorbed by overhead expenses, 

so that a lower value indicates greater efficiency.

Estimated insured deposits – in general, insured deposits are total 

domestic deposits minus estimated uninsured deposits. Beginning March 31, 2008, for institutions that file Call reports, 

insured deposits are total assessable deposits minus estimated 

uninsured deposits. Beginning September 30, 2009, insured 

deposits include deposits in accounts of $100,000 to $250,000 

that are covered by a temporary increase in the FDIC’s standard maximum deposit insurance amount (SMDIA).

Failed/assisted institutions – an institution fails when regulators 

take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the 

FDIC to provide funds to cover losses. An institution is 

defined as “assisted” when the institution remains open and 

receives assistance in order to continue operating.

Fair Value – the valuation of various assets and liabilities on 

the balance sheet—including trading assets and liabilities, 

available-for-sale securities, loans held for sale, assets and liabilities accounted for under the fair value option, and foreclosed assets—involves the use of fair values. During periods 

of market stress, the fair values of some financial instruments 

and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC insured institutions 

from the Federal Home Loan Bank System (FHLB), as reported by Call Report filers and by TFR filers.

Goodwill and other intangibles – intangible assets include 

servicing rights, purchased credit card relationships, and other 

identifiable intangible assets. Goodwill is the excess of the 

purchase price over the fair market value of the net assets 

acquired, less subsequent impairment adjustments. Other 

intangible assets are recorded at fair value, less subsequent 

quarterly amortization and impairment adjustments.

Loans secured by real estate – includes home equity loans, 

junior liens secured by 1-4 family residential properties, and 

all other loans secured by real estate.

Loans to individuals – includes outstanding credit card balances 

and other secured and unsecured consumer loans.
FDIC Quarterly 27 2010, Volume 4, No. 4

Quarterly Banking Profile

Effective April 1, 2009, the initial base assessment rates are 

12 to 45 basis points. An institution’s total assessment rate 

may be less than or greater than its initial base assessment 

rate as a result of additional risk adjustments.

The base assessment rates for most institutions in Risk 

Category I are based on a combination of financial ratios and 

CAMELS component ratings (the financial ratios method).

For large institutions in Risk Category I (generally those with 

at least $10 billion in assets) that have long-term debt issuer 

ratings, assessment rates are determined by equally weighting 

the institution’s CAMELS component ratings, long-term debt 

issuer ratings, and the financial ratios method assessment rate. 

For all large Risk Category I institutions, additional risk factors are considered to determine whether assessment rates 

should be adjusted. This additional information includes market data, financial performance measures, considerations of 

the ability of an institution to withstand financial stress, and 

loss severity indicators. Any adjustment is limited to no more 

than one basis point.

Effective April 1, 2009, the FDIC introduced three possible 

adjustments to an institution’s initial base assessment rate: 

(1) a decrease of up to 5 basis points for long-term unsecured 

debt and, for small institutions, a portion of Tier 1 capital; 

(2) an increase not to exceed 50 percent of an institution’s 

assessment rate before the increase for secured liabilities in 

excess of 25 percent of domestic deposits; and (3) for nonRisk Category I institutions, an increase not to exceed 10 

basis points for brokered deposits in excess of 10 percent of 

domestic deposits. After applying all possible adjustments, 

minimum and maximum total base assessment rates for each 

risk category are as follows:

Total Base Assessment Rates*

Risk 

Category 

I

Risk 

Category 

II

Risk 

Category 

III

Risk 

Category 

IV

Initial base 

assessment rate 12–16 22 32 45

Unsecured debt 

adjustment -5 –0 -5–0 -5 –0 -5–0

Secured liability 

adjustment 0 –8 0 –11 0 –16 0 –22.5

Brokered deposit 

adjustment – 0 –10 0 –10 0 –10

Total base 

assessment rate 7–24.0 17–43.0 27–58.0 40–77.5

*All amounts for all risk categories are in basis points annually. Total base rates that are 

not the minimum or maximum rate will vary between these rates. 

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

rate for a quarterly assessment period near the end of the 

quarter following the assessment period. Payment is generally 

due on the 30th day of the last month of the quarter following the assessment period. Supervisory rating changes are 

effective for assessment purposes as of the examination transmittal date. For institutions with long-term debt issuer ratings, changes in ratings are effective for assessment purposes 

as of the date the change was announced.

Special Assessment – On May 22, 2009, the FDIC board 

approved a final rule that imposed a 5 basis point special 

assessment as of June 30, 2009. The special assessment was 

based on FDIC composite ratings. Prior to March 31, 2008, 

for institutions whose primary federal regulator was the OTS, 

the OTS composite rating was used.

Recourse – an arrangement in which a bank retains, in form or 

in substance, any credit risk directly or indirectly associated 

with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the 

bank’s claim on the asset. If a bank has no claim on an asset 

it has sold, then the retention of any credit risk is recourse.

Reserves for losses – the allowance for loan and lease losses on 

a consolidated basis.

Restructured loans and leases – loan and lease financing 

receivables with terms restructured from the original contract. 

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

Retained earnings – net income less cash dividends on common and preferred stock for the reporting period.

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

securities and extraordinary items) as a percentage of average total 

(consolidated) assets. The basic yardstick of bank profitability.

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

on securities and extraordinary items) as a percentage of 

average total equity capital.

Risk-based capital groups – definition:

(Percent)

Total 

Risk-Based 

Capital*

Tier 1

Risk-Based 

Capital*

Tier 1 

Leverage

Tangible

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 became effective January 1, 2007. Capital ratios and 

supervisory ratings distinguish one risk category from another. 

The following table shows the relationship of risk categories 

(I, II, III, IV) to capital and supervisory groups as well as the 

initial base assessment rates (in basis points), effective April 1, 

2009 for each risk category. Supervisory Group A generally 

includes institutions with CAMELS composite ratings of 1 or 

2; Supervisory Group B generally includes institutions with a 

CAMELS composite rating of 3; and Supervisory Group C 

generally includes institutions with CAMELS composite ratings of 4 or 5. For purposes of risk-based assessment capital 

groups, undercapitalized includes institutions that are significantly or critically undercapitalized.

Capital Category

Supervisory Group

A B C

1. Well Capitalized I

12–16 bps II

22 bps

III

32 bps 2. Adequately Capitalized II

22 bps

3. Undercapitalized III

32 bps

IV

45 bps
FDIC Quarterly 28 2010, Volume 4, No. 4

giving banks access to liquidity during a time of global financial distress. Participation in the TLGP is voluntary. The 

TLGP has two components:

Transaction Account Guarantee Program (TAGP) provides a full 

guarantee of non-interest-bearing deposit transaction 

accounts above $250,000, at depository institutions that 

elected to participate in the program. On August 26, 2009, 

the FDIC Board voted to extend the TAGP six months 

beyond its original expiration date to June 30, 2010. On 

April 13, 2010 the FDIC Board adopted an interim rule 

extending the TAG program for six months through 

December 31, 2010, with a possibility of an additional 

12-month extension, through December 31, 2011.

Debt Guarantee Program (DGP) provides a full guarantee of 

senior unsecured debt1 issued by eligible institutions after 

October 14, 2008. Initially, debt issued before June 30, 

2009, and maturing on or before June 30, 2012, could be 

guaranteed. On March 17, 2009, the deadline for issuance 

under the program was extended to October 31, 2009, and 

the expiration of the guarantee was set at the earlier of 

maturity of the debt or December 31, 2012. Institutions 

eligible for participation in the debt guarantee program 

include insured depository institutions, U.S. bank holding 

companies, certain U.S. savings and loan holding companies, and other affiliates of an insured depository institution 

that the FDIC designates as eligible entities. The FDIC 

Board adopted a final rule on October 20, 2009, that established a limited six-month emergency guarantee facility 

upon expiration of the DGP.

Trust assets – market value, or other reasonably available 

value of fiduciary and related assets, to include marketable 

securities, and other financial and physical assets. Common 

physical assets held in fiduciary accounts include real estate, 

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.

1

 Senior unsecured debt generally includes term Federal funds 

purchased, promissory notes, commercial paper, unsubordinated 

unsecured notes, certificates of deposit (CDs) standing to the credit of 

a bank, and U.S. dollar denominated bank deposits owed to an insured 

depository institution.

levied on each insured depository institution’s assets minus its 

Tier 1 capital as reported in its report of condition as of June 

30, 2009. The special assessment was collected September 30, 

2009, at the same time that the risk-based assessment for the 

second quarter of 2009 was collected. The special assessment 

for any institution was capped at 10 basis points of the institution’s assessment base for the second quarter of 2009 riskbased assessment.

Prepaid Deposit Insurance Assessments – In November 2009, the 

FDIC Board of Directors adopted a final rule requiring insured 

depository institutions (except those that are exempted) to 

prepay their quarterly risk-based deposit insurance assessments 

for the fourth quarter of 2009, and for all of 2010, 2011, and 

2012, on December 30, 2009. Each institution’s regular riskbased deposit insurance assessment for the third quarter of 

2009, which is paid in arrears, also is payable on December 

30, 2009.

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

definitions which include on-balance-sheet as well as off-balance-sheet items multiplied by risk-weights that range from 

zero to 200 percent. A conversion factor is used to assign a 

balance sheet equivalent amount for selected off-balancesheet accounts.

Securities – excludes securities held in trading accounts. 

Banks’ securities portfolios consist of securities designated as 

“held-to-maturity,” which are reported at amortized cost 

(book value), and securities designated as “available-for-sale,” 

reported at fair (market) value.

Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments 

for income taxes. Thrift Financial Report (TFR) filers also 

include gains (losses) on the sales of assets held for sale.

Seller’s interest in institution’s own securitizations – the reporting 

bank’s ownership interest in loans and other assets that have 

been securitized, except an interest that is a form of recourse 

or other seller-provided credit enhancement. Seller’s interests 

differ from the securities issued to investors by the securitization structure. The principal amount of a seller’s interest is 

generally equal to the total principal amount of the pool of 

assets included in the securitization structure less the principal amount of those assets attributable to investors, i.e., in the 

form of securities issued to investors.

Subchapter S Corporation – a Subchapter S corporation is treated as a pass-through entity, similar to a partnership, for federal income tax purposes. It is generally not subject to any 

federal income taxes at the corporate level. This can have the 

effect of reducing institutions’ reported taxes and increasing 

their after-tax earnings.

Temporary Liquidity Guarantee Program (TLGP) – was approved 

by the FDIC Board on October 13, 2008. The TLGP was 

designed to help relieve the crisis in the credit markets by