Quarterly Banking Profile Second Quarter 2008 

INSURED INSTITUTION PERFORMANCE 

n Industry Net Income Falls to $5 Billion 

n Quarterly Loss Provisions Surpass $50 Billion 

n Asset Quality Indicators Continue to Deteriorate 

n Industry Assets Post First Decline in Six Years 

Second-Quarter Earnings Are 87 Percent Below 

Year-Earlier Level 

The continued downturn in the credit cycle, combined 

with lingering weakness in financial markets and falling 

asset values, had a pronounced negative effect on banking industry performance in the second quarter. Insured 

commercial banks and savings institutions reported net 

income of $5.0 billion for the second quarter of 2008. 

This is the second-lowest quarterly total since 1991 and 

is $31.8 billion (86.5 percent) less than the industry 

earned in the second quarter of 2007. Higher loan-loss 

provisions were the most significant factor in the earnings decline. Loss provisions totaled $50.2 billion, more 

than four times the $11.4 billion quarterly total of a year 

ago. Second-quarter provisions absorbed almost one-third 

(31.9 percent) of the industry’s net operating revenue 

(net interest income plus total noninterest income), the 

highest proportion since the third quarter of 1989. A 

year ago, provisions absorbed only 7.3 percent of industry revenue. The average return on assets (ROA) in 

the second quarter was 0.15 percent, compared to 1.21 

percent a year earlier. Large institutions as a group had 

more substantial earnings erosion than smaller institutions, but downward earnings pressure was widely evident 

across the industry. At institutions with assets greater 

than $1 billion, the average ROA in the second quarter 

was 0.10 percent, down from 1.23 percent a year ago. At 

institutions with less than $1 billion in assets, the average 

second-quarter ROA was 0.57 percent, compared to 1.10 

percent in the second quarter of 2007. More than half of 

all insured institutions (56.4 percent) reported year-overyear declines in quarterly net income, and almost two out 

of every three institutions (62.1 percent) reported lower 

ROAs. Almost 18 percent of all insured institutions 

were unprofitable in the second quarter, compared to 

only 9.8 percent in the second quarter of 2007. 

Market-Sensitive Revenues Remain Weak 

Net operating revenue was only $772 million (0.5 

percent) above the level of a year earlier, even though 

revaluations of certain assets and liabilities under fair 

value accounting provided a $7.9-billion boost to pretax 

earnings in the second quarter. Noninterest income of 

$60.8 billion was $7.4 billion (10.9 percent) lower than 

in the second quarter of 2007. The decline in noninterest 

income was attributable to lower trading income (down 

$5.5 billion, or 88.6 percent); smaller gains from sales of 

loans, foreclosed properties, and other assets (down $1.7 

Chart 1 Chart 2 

–4 

0 

4 

8 

12 

16 

20 

24 

28 

32 

36 

40 

Securities and Other Gains/Losses, Net 

Net Operating Income 

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

2004 2005 2006 2007 2008 

Earnings Remain Weak and Volatile 

$ Billions 

31.8 31.2 32.5 31.0 

34.0 33.2 34.7 

32.6 

36.9 38.0 38.1 

35.3 35.6 36.8 

28.7 

0.6 

19.3 

5.0 

Higher Loss Provisions Were the Primary Cause 

of the Decline in Industry Earnings 

2nd Quarter 2008 vs. 2nd Quarter 2007 

($ Billions) 

8.2 

38.8 

6.6 

–7.4 –2.8 

–20 

–12 

–4 

4 

12 

20 

28 

36 

Increase in 

Net Interest 

Income 

Decrease in 

Noninterest 

Income 

Increase in 

Loan Loss 

Provision 

Decrease 

in Gains on 

Securities 

Sales 

Increase in 

Noninterest 

Expense 

Positive 

Factor 

Negative 

Factors 

FDIC Quarterly 1 2008, Volume 2, No. 3 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

billion, or 41.2 percent); and lower income from securitization activities (down $1.5 billion, or 28.3 percent). In 

addition to the decline in noninterest income, securities 

sales yielded $2.3 billion in net losses in the second quarter, compared to $573 million in net gains a year earlier. 

Expenses for goodwill and other intangibles totaled $4.5 

billion, more than double the $2.1 billion incurred by 

the industry in the second quarter of 2007. Net interest 

income was one of the few bright spots in industry revenues, rising by $8.2 billion (9.3 percent) over year-earlier 

levels. Servicing fee income increased by $1.9 billion 

(35.9 percent). Service charges on deposit accounts 

increased by $853 million (8.6 percent) at insured 

commercial banks and state-chartered savings banks. 

Margins Show Little Change as Average Yields 

and Funding Costs Fall 

The average net interest margin (NIM) improved slightly 

compared to the first quarter, from 3.33 percent to 3.37 

percent. Improvements and declines were fairly evenly 

divided among insured institutions, with 46.9 percent 

reporting lower margins than in the first quarter, and 51.5 

percent reporting improved NIMs. The relatively small 

change in quarterly NIM contrasted with declines of more 

than 50 basis points in both average asset yields and average funding costs between the two quarters. The average 

yield on interest-bearing assets fell from 6.27 percent in 

the first quarter to 5.76 percent in the second quarter, 

while the average interest expense to fund interestbearing assets fell from 2.95 percent to 2.38 percent. The 

industry average NIM has remained within a 5 basispoint range during the last six quarters, as community 

bank margins have fallen by 21 basis points and margins 

for larger institutions have risen by 10 basis points. 

Net Charge-Off Rate Rises to Highest Level 

Since 1991 

Loan losses registered a sizable jump in the second quarter, as loss rates on real estate loans increased sharply at 

many large lenders. Net charge-offs of loans and leases 

totaled $26.4 billion in the second quarter, almost triple 

the $8.9 billion that was charged off in the second 

quarter of 2007. The annualized net charge-off rate in 

the second quarter was 1.32 percent, compared to 0.49 

percent a year earlier. This is the highest quarterly 

charge-off rate for the industry since the fourth quarter 

of 1991. At institutions with more than $1 billion in 

assets, the average charge-off rate in the second quarter 

was 1.46 percent, more than three times the 0.44 

percent average for institutions with less than $1 billion 

in assets. Net charge-offs increased year-over-year for all 

major loan categories in the second quarter. Charge-offs 

of 1-4 family residential mortgage loans increased by 

$5.8 billion (821.9 percent), while charge-offs of real 

estate construction and land development loans rose by 

$3.2 billion (1,226.6 percent). Net charge-offs of home 

equity loans were $2.8 billion (632.7 percent) higher 

than a year earlier, charge-offs of loans to commercial 

and industrial (C&I) borrowers were up by $1.8 billion 

(127.5 percent), credit card charge-offs increased by 

$1.7 billion (47.4 percent), and charge-offs of other 

loans to individuals grew by $1.4 billion (70.3 percent). 

Noncurrent Loan Rate Rises Above 2 Percent for 

the First Time Since 1993 

The amount of loans and leases that were noncurrent 

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

rose for a ninth consecutive quarter, increasing by 

$26.7 billion (19.6 percent). This is the second-largest 

Chart 3 Chart 4 

Fewer Institutions Are Improving Their Earnings 

Percent of Institutions with Quarterly Earnings Gains 

35 

40 

45 

50 

55 

60 

65 

3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 

42.6% 

56.1% 

The Average Community Bank Margin Did Not Change 

in the Second Quarter 

Net Interest Margin (%) 

5.0 

3.0 

3.5 

4.0 

4.5 

Assets < $1 Billion 

3.70 

3.33 

Assets > $1 Billion 

2.5 

123412341234123412 

2004 2005 2006 2007 2008 

FDIC Quarterly 2 2008, Volume 2, No. 3 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Banking Profile 

quarterly increase in noncurrent loans during the 

nine-quarter streak, after the $27.0-billion increase in 

the fourth quarter of 2007 when quarterly net chargeoffs were $10 billion lower. All major loan categories 

registered increased levels of noncurrent loans in the 

second quarter. The amount of 1-4 family residential 

real estate loans that were noncurrent increased by 

$11.7 billion (21.2 percent) during the quarter, while 

noncurrent real estate construction and land development loans rose by $8.2 billion (27.2 percent). Large 

increases were also reported in loans secured by 

nonfarm nonresidential real estate properties (up 

$2.0 billion, or 19.6 percent), C&I loans (up 

$1.8 billion, or 15.0 percent), and home equity loans 

(up $1.7 billion, or 25.5 percent). At the end of June, 

the percentage of the industry’s total loans and leases 

that were noncurrent stood at 2.04 percent, the highest 

level since the third quarter of 1993. 

Large Boost in Reserves Does Not Quite Keep Pace 

with Noncurrent Loans 

For the third consecutive quarter, insured institutions 

added almost twice as much in loan-loss provisions to 

their reserves for losses as they charged-off for bad loans. 

Provisions exceeded charge-offs by $23.8 billion in the 

second quarter, and industry reserves rose by $23.1 

billion (19.1 percent). The industry’s ratio of reserves to 

total loans and leases increased from 1.52 percent to 

1.80 percent, its highest level since the middle of 1996. 

However, for the ninth consecutive quarter, increases 

in noncurrent loans surpassed growth in reserves, and 

the industry’s “coverage ratio” fell very slightly, from 

88.9 cents in reserves for every $1.00 in noncurrent 

loans, to 88.5 cents, a 15-year low for the ratio. 

Chart 5 

The Rising Trend in Troubled Loans 

Shows No Sign of Abating 

$ Billions 

60 

50 Quarterly Change in Noncurrent Loans 

Quarterly Net Charge-offs 

40 

30 

20 

10 0.5 

0
 

–1.3
 

16.3 19.6 

27.0 

26.2 

10.9 

15.3 

7.1 8.5 8.2 8.9 

3.5 4.8 3.8 6.4 

5.5 6.1 26.4 

26.7 

Capital Growth Slows Despite Cutbacks in Dividends 

The industry added $10.6 billion to its total regulatory 

capital in the second quarter, the smallest quarterly 

increase since the fourth quarter of 2003. A majority of 

institutions (60.0 percent) reported declines in their total 

risk-based capital ratios during the quarter. More than 

half (50.9 percent) of the 4,056 institutions that paid 

dividends in the second quarter of 2007 reported smaller 

dividend payments in the second quarter of 2008, including 673 institutions that paid no quarterly dividend. 

Dividend payments in the second quarter totaled $17.7 

billion, less than half the $40.9 billion insured institutions paid a year earlier. Even with reduced dividend 

payments, fewer than half of all institutions (45.5 

percent) reported higher levels of retained earnings 

compared to a year ago. Less than one-fourth of the 

$23.1-billion increase in industry loan-loss reserves in the 

second quarter was included in regulatory capital because 

the amount of reserves in regulatory capital cannot 

exceed 1.25 percent of an institution’s total risk-weighted 

assets, and a number of institutions now have reserves 

that exceed that limit. Despite the slowdown in capital 

growth and the erosion in capital ratios at many institutions, 98.4 percent of all institutions (accounting for 99.4 

percent of total industry assets) met or exceeded the 

highest regulatory capital requirements at the end of June. 

Reductions in Trading Accounts Cause Total 

Industry Assets to Decline 

Total assets of insured institutions declined by $68.6 

billion during the quarter, the first time since the first 

quarter of 2002 that industry assets have decreased, and 

the largest quarterly decline since the first quarter of 

1991. The reduction in assets was driven by a few large 

Chart 6 

Loan Losses Have Risen Much More Sharply 

at Large Institutions 

Quarterly Net Charge-off Rate (Percent) 

0.0 

0.2 

0.4 

0.6 

0.8 

1.0 

1.2 

1.4 

1.6 

1.8 

2.0 

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 

Assets < $1 Billion 

Assets > $1 Billion 

1 2 3 4 1 2 3 4 1 2 –10 

2006 2007 2008 

FDIC Quarterly 3 2008, Volume 2, No. 3 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

institutions, although almost 40 percent of all insured 

institutions reported lower assets at the end of June, 

compared to the end of March. Assets in trading 

accounts, which increased by $135.2 billion in the first 

quarter, declined by $118.9 billion (11.8 percent) in 

the second quarter. The industry’s 1-4 family residential 

mortgage loans, which declined by $25.9 billion in the 

first quarter, fell by an additional $61.4 billion (2.8 

percent) in the second quarter. Real estate construction 

and development loans registered their first quarterly 

decline since the first quarter of 1997, falling by $5.4 

billion (0.9 percent). Total unused loan commitments 

declined by $145.9 billion (1.8 percent), while letters 

of credit increased by $28.9 billion (5.9 percent). 

Other real estate owned—properties acquired through 

foreclosure—increased by $3.5 billion (29.1 percent) 

during the quarter, to $15.6 billion at midyear. 

Growth in Small Business Loans Slowed in the 

Last 12 Months 

The annual data on loans to small businesses and farms 

that are reported as of each June 30 showed that total 

small business and farm loans increased by $25.3 billion 

(3.4 percent) during the 12 months ended June 30. In 

contrast, larger loans to businesses and farms increased by 

$249.4 billion (18.4 percent) during that period. In the 

June 2006 to June 2007 period, small business and farm 

loans increased by $55.2 billion (7.9 percent). These loans 

currently account for almost one-third (32.7 percent) of 

all business and farm loans to domestic borrowers. 

Deposits Decline in Domestic Offices 

Total deposits at insured institutions increased by 

only $6.9 billion (0.1 percent) in the second quarChart 7 

ter, as the decline in industry assets reduced overall 

funding needs. Deposits in foreign offices increased 

by $46.8 billion (3.1 percent), while deposits in 

domestic offices fell by $39.8 billion (0.6 percent). 

In domestic offices, interest-sensitive deposits fell 

during the quarter, while interest-insensitive deposits grew. Domestic office time deposits declined by 

$50.6 billion (1.9 percent), while other domestic 

interest-bearing deposits fell by $19.6 billion (0.1 

percent). Noninterest-bearing deposits in domestic 

offices rose by $30.4 billion (2.5 percent). Nondeposit liabilities declined by $66.1 billion (1.9 percent) 

during the quarter, due in large part to a $48.5-billion 

(11.9-percent) drop in liabilities in trading accounts. 

Two More Banks Fail in the Second Quarter 

The number of institutions filing quarterly financial 

reports fell to 8,451 at the end of the second quarter, 

down from 8,494 at the end of the first quarter. 

Twenty-four new charters were added during the 

second quarter, while 64 existing charters were merged 

into other institutions. Two insured institutions failed 

during the quarter, bringing the total for the first six 

months of 2008 to four failures. Three mutually owned 

savings banks, with combined assets of $1.1 billion, 

converted to stock ownership in the second quarter. 

The number of institutions on the FDIC’s “Problem 

List” increased from 90 to 117 during the quarter. 

Assets of “problem” institutions increased from 

$26.3 billion to $78.3 billion. 

Author: 	 Ross Waldrop, Sr. Banking Analyst 

Division of Insurance and Research, FDIC 

(202) 898-3951 

Chart 8 

Industry Assets Shrank for the First Time Since 2002 Domestic Deposits Declined in the Second Quarter 

Quarterly Change in Interest-Earning Assets, $ Billions Quarterly Change, $ Billions 

500 Mortgage Assets 

Other Interest-Earning Assets 

400 

354
 

309
 297 300 273 261
 

218
 209 212 204 207 

200 178 170 169 160176 

145 

100 78 

99 

64 

–3 

109 

140 

154 

110 106 

37 

157 

48 

173 

156 

–40 0 

–100 

–50 

50 

100 

150 

200 

2005 2006 2007 2008 

0 1 2 3 4 1 2 3 4 1 2 3 4 1 2 –33

12341234123412341 2 

–100 2004	 2005 2006 2007 2008 

FDIC Quarterly	 4 2008, Volume 2, No. 3 
INCOME DATA

Total interest income ................................................................................ $343,177 $358,377 -4.2 $164,886 $182,527 -9.7

Total interest expense .............................................................................. 152,034 183,746 -17.3 68,309 94,130 -27.4

Net interest income ................................................................................ 191,143 174,631 9.5 96,577 88,397 9.3

Provision for loan and lease losses .......................................................... 87,352 20,546 325.2 50,151 11,363 341.3

Total noninterest income .......................................................................... 121,307 130,467 -7.0 60,821 68,229 -10.9

Total noninterest expense ........................................................................ 188,238 178,407 5.5 97,526 90,933 7.3

Securities gains (losses) .......................................................................... -1,054 2,155 N/M -2,268 573 N/M

Applicable income taxes ........................................................................... 11,088 35,013 -68.3 2,130 17,904 -88.1

Extraordinary gains, net ............................................................................ -496 -912 N/M -364 -223 N/M

Net income ............................................................................................ 24,222 72,375 -66.5 4,959 36,776 -86.5

Net charge-offs ......................................................................................... 45,957 17,141 168.1 26,354 8,946 194.6

Cash dividends ......................................................................................... 31,688 67,014 -52.7 17,728 40,868 -56.6

Retained earnings .................................................................................... -7,467 5,362 N/M -12,769 -4,092 N/M

Net operating income ............................................................................... 25,118 71,832 -65.0 6,264 36,630 -82.9

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

2nd Quarter

2007

%Change

07:2-08:2

First Half

2008

First Half

2007 %Change

2nd Quarter

2008

(dollar figures in millions)

Number of institutions reporting ........................................................................... 8,451 8,494 8,614 -1.9

Total employees (full-time equivalent) .................................................................. 2,204,185 2,212,753 2,220,907 -0.8

CONDITION DATA

Total assets .......................................................................................................... $13,300,800 $13,369,409 $12,261,393 8.5

Loans secured by real estate ............................................................................ 4,794,051 4,804,695 4,619,562 3.8

1-4 Family residential mortgages ................................................................... 2,154,163 2,215,541 2,207,433 -2.4

Nonfarm nonresidential .................................................................................. 1,019,108 990,083 923,986 10.3

Construction and development ....................................................................... 627,170 632,602 600,471 4.4

Home equity lines ........................................................................................... 646,890 624,920 576,717 12.2

Commercial & industrial loans ........................................................................... 1,492,526 1,483,356 1,299,539 14.9

Loans to individuals ........................................................................................... 1,069,507 1,048,217 980,847 9.0

Credit cards .................................................................................................... 396,047 386,853 373,951 5.9

Farm loans ......................................................................................................... 58,348 53,837 55,608 4.9

Other loans & leases ......................................................................................... 584,180 580,269 514,109 13.6

Less: Unearned income ..................................................................................... 2,513 2,455 3,068 -18.1

Total loans & leases .......................................................................................... 7,996,100 7,967,919 7,466,597 7.1

Less: Reserve for losses ................................................................................... 144,259 121,116 81,225 77.6

Net loans and leases ......................................................................................... 7,851,841 7,846,802 7,385,373 6.3

Securities ........................................................................................................... 2,017,381 1,953,038 1,977,442 2.0

Other real estate owned .................................................................................... 18,910 15,643 7,995 136.5

Goodwill and other intangibles .......................................................................... 481,434 469,176 435,892 10.4

All other assets .................................................................................................. 2,931,234 3,084,750 2,454,691 19.4

Total liabilities and capital ..................................................................................... 13,300,800 13,369,409 12,261,393 8.5

Deposits ............................................................................................................. 8,572,675 8,565,762 8,035,595 6.7

Domestic office deposits ................................................................................. 7,029,143 7,068,980 6,692,011 5.0

Foreign office deposits ................................................................................... 1,543,532 1,496,782 1,343,583 14.9

Other borrowed funds ........................................................................................ 2,598,224 2,587,208 2,248,610 15.5

Subordinated debt ............................................................................................. 185,078 185,580 172,377 7.4

All other liabilities ............................................................................................... 593,314 669,917 525,712 12.9

Equity capital ..................................................................................................... 1,351,510 1,360,943 1,279,099 5.7

Loans and leases 30-89 days past due ................................................................ 111,883 110,970 74,042 51.1

Noncurrent loans and leases ................................................................................ 162,913 136,208 67,686 140.7

Restructured loans and leases ............................................................................. 14,337 10,164 3,229 344.0

Direct and indirect investments in real estate ....................................................... 962 956 1,080 -11.0

Mortgage-backed securities ................................................................................. 1,322,058 1,281,359 1,237,426 6.8

Earning assets ...................................................................................................... 11,441,474 11,474,954 10,723,166 6.7

FHLB Advances .................................................................................................... 840,573 841,580 608,457 38.1

Unused loan commitments ................................................................................... 8,158,474 8,304,383 8,086,534 0.9

Trust assets .......................................................................................................... 21,727,938 20,924,568 21,020,489 3.4

Assets securitized and sold*** .............................................................................. 1,750,758 1,724,121 1,638,581 6.8

Notional amount of derivatives*** ......................................................................... 183,302,893 181,599,440 154,810,235 18.4

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

2nd Quarter

2008

1st Quarter

2008

2nd Quarter

2007

%Change

07:2-08:2

TABLE I-A. Selected Indicators, All FDIC-Insured Institutions*

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

2008** 2007** 2007 2006 2005 2004 2003

Return on assets (%) ................................................................ 0.37 1.20 0.81 1.28 1.28 1.28 1.38

Return on equity (%) ................................................................. 3.58 11.45 7.76 12.30 12.43 13.20 15.05

Core capital (leverage) ratio (%) ............................................... 7.89 8.21 7.97 8.22 8.25 8.11 7.88

Noncurrent assets plus

other real estate owned to assets (%) ................................... 1.38 0.62 0.94 0.54 0.50 0.53 0.75

Net charge-offs to loans (%) ..................................................... 1.16 0.47 0.59 0.39 0.49 0.56 0.78

Asset growth rate (%) ............................................................... 8.48 6.38 9.89 9.04 7.63 11.37 7.58

Net interest margin (%) ............................................................. 3.35 3.32 3.29 3.31 3.47 3.52 3.73

Net operating income growth (%) ............................................. -65.03 -2.60 -27.56 8.53 11.43 3.99 16.38

Number of institutions reporting ................................................ 8,451 8,614 8,534 8,680 8,833 8,976 9,181

Commercial banks ................................................................. 7,203 7,350 7,283 7,401 7,526 7,631 7,770

Savings institutions ................................................................ 1,248 1,264 1,251 1,279 1,307 1,345 1,411

Percentage of unprofitable institutions (%) ............................... 16.73 9.52 12.07 7.93 6.22 5.97 5.99

Number of problem institutions ................................................. 117 61 76 50 52 80 116

Assets of problem institutions (in billions) ................................. $78 $24 $22 $8 $7 $28 $30

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

* Excludes insured branches of foreign banks (IBAs).

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

TABLE I-A. Selected Indicators, All FDIC-Insured Institutions*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Banking Profile 

TABLE I-A. Selected Indicators, All FDIC-Insured Institutions* 2008** 2007** 2007 2006 2005 2004 2003 

Return on assets (%) ................................................................ 0.37 1.20 0.81 1.28 1.28 1.28 1.38 

Return on equity (%) ................................................................. 3.58 11.45 7.76 12.30 12.43 13.20 15.05 

Core capital (leverage) ratio (%) ............................................... 7.89 8.21 7.97 8.22 8.25 8.11 7.88 

Noncurrent assets plus 

other real estate owned to assets (%) ................................... 1.38 0.62 0.94 0.54 0.50 0.53 0.75 

Net charge-offs to loans (%) ..................................................... 1.16 0.47 0.59 0.39 0.49 0.56 0.78 

Asset growth rate (%) ............................................................... 8.48 6.38 9.89 9.04 7.63 11.37 7.58 

Net interest margin (%) ............................................................. 3.35 3.32 3.29 3.31 3.47 3.52 3.73 

Net operating income growth (%) ............................................. -65.03 -2.60 -27.56 8.53 11.43 3.99 16.38 

Number of institutions reporting ................................................ 8,451 8,614 8,534 8,680 8,833 8,976 9,181 

Commercial banks ................................................................. 7,203 7,350 7,283 7,401 7,526 7,631 7,770 

Savings institutions ................................................................ 1,248 1,264 1,251 1,279 1,307 1,345 1,411 

Percentage of unprofitable institutions (%) ............................... 16.73 9.52 12.07 7.93 6.22 5.97 5.99 

Number of problem institutions ................................................. 117 61 76 50 52 80 116 

Assets of problem institutions (in billions) ................................. $78 $24 $22 $8 $7 $28 $30 

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

* Excludes insured branches of foreign banks (IBAs). 

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

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

(dollar figures in millions) 

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

2nd Quarter 

2008 

1st Quarter 

2008 

2nd Quarter 

2007 

%Change 

07:2-08:2 

8,451 8,494 8,614 -1.9 

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

CONDITION DATA 

2,204,185 2,212,753 2,220,907 -0.8 

Total assets .......................................................................................................... $13,300,800 $13,369,409 $12,261,393 8.5 

Loans secured by real estate ............................................................................ 4,794,051 4,804,695 4,619,562 3.8 

1-4 Family residential mortgages ................................................................... 2,154,163 2,215,541 2,207,433 -2.4 

Nonfarm nonresidential .................................................................................. 1,019,108 990,083 923,986 10.3 

Construction and development ....................................................................... 627,170 632,602 600,471 4.4 

Home equity lines ........................................................................................... 646,890 624,920 576,717 12.2 

Commercial & industrial loans ........................................................................... 1,492,526 1,483,356 1,299,539 14.9 

Loans to individuals ........................................................................................... 1,069,507 1,048,217 980,847 9.0 

Credit cards .................................................................................................... 396,047 386,853 373,951 5.9 

Farm loans ......................................................................................................... 58,348 53,837 55,608 4.9 

Other loans & leases ......................................................................................... 584,180 580,269 514,109 13.6 

Less: Unearned income ..................................................................................... 2,513 2,455 3,068 -18.1 

Total loans & leases .......................................................................................... 7,996,100 7,967,919 7,466,597 7.1 

Less: Reserve for losses ................................................................................... 144,259 121,116 81,225 77.6 

Net loans and leases ......................................................................................... 7,851,841 7,846,802 7,385,373 6.3 

Securities ........................................................................................................... 2,017,381 1,953,038 1,977,442 2.0 

Other real estate owned .................................................................................... 18,910 15,643 7,995 136.5 

Goodwill and other intangibles .......................................................................... 481,434 469,176 435,892 10.4 

All other assets .................................................................................................. 2,931,234 3,084,750 2,454,691 19.4 

Total liabilities and capital ..................................................................................... 13,300,800 13,369,409 12,261,393 8.5 

Deposits ............................................................................................................. 8,572,675 8,565,762 8,035,595 6.7 

Domestic office deposits ................................................................................. 7,029,143 7,068,980 6,692,011 5.0 

Foreign office deposits ................................................................................... 1,543,532 1,496,782 1,343,583 14.9 

Other borrowed funds ........................................................................................ 2,598,224 2,587,208 2,248,610 15.5 

Subordinated debt ............................................................................................. 185,078 185,580 172,377 7.4 

All other liabilities ............................................................................................... 593,314 669,917 525,712 12.9 

Equity capital ..................................................................................................... 1,351,510 1,360,943 1,279,099 5.7 

Loans and leases 30-89 days past due ................................................................ 111,883 110,970 74,042 51.1 

Noncurrent loans and leases ................................................................................ 162,913 136,208 67,686 140.7 

Restructured loans and leases ............................................................................. 14,337 10,164 3,229 344.0 

Direct and indirect investments in real estate ....................................................... 962 956 1,080 -11.0 

Mortgage-backed securities ................................................................................. 1,322,058 1,281,359 1,237,426 6.8 

Earning assets ...................................................................................................... 11,441,474 11,474,954 10,723,166 6.7 

FHLB Advances .................................................................................................... 840,573 841,580 608,457 38.1 

Unused loan commitments ................................................................................... 8,158,474 8,304,383 8,086,534 0.9 

Trust assets .......................................................................................................... 21,727,938 20,924,568 21,020,489 3.4 

Assets securitized and sold*** .............................................................................. 1,750,758 1,724,121 1,638,581 6.8 

Notional amount of derivatives*** ......................................................................... 183,302,893 181,599,440 154,810,235 18.4 

INCOME DATA 

2nd Quarter 

2007 

%Change 

07:2-08:2 

First Half 

2008 

First Half 

2007 %Change 

2nd Quarter 

2008 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

$343,177 $358,377 -4.2 $164,886 $182,527 -9.7 

152,034 183,746 -17.3 68,309 94,130 -27.4 

191,143 174,631 9.5 96,577 88,397 9.3 

87,352 20,546 325.2 50,151 11,363 341.3 

121,307 130,467 -7.0 60,821 68,229 -10.9 

188,238 178,407 5.5 97,526 90,933 7.3 

-1,054 2,155 N/M -2,268 573 N/M 

11,088 35,013 -68.3 2,130 17,904 -88.1 

-496 -912 N/M -364 -223 N/M 

24,222 72,375 -66.5 4,959 36,776 -86.5 

45,957 17,141 168.1 26,354 8,946 194.6 

31,688 67,014 -52.7 17,728 40,868 -56.6 

-7,467 5,362 N/M -12,769 -4,092 N/M 

25,118 71,832 -65.0 6,264 36,630 -82.9 

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

FDIC Quarterly 5 2008, Volume 2, No. 3 
TABLE III-A. Second Quarter 2008, All FDIC-Insured Institutions TABLE III-A. Second Quarter 2008, All FDIC-Insured Institutions 

SECOND QUARTER 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,451 27 6 1,584 4,786 845 98 306 756 43 

Commercial banks ............................................... 7,203 23 6 1,579 4,281 218 78 278 705 35 

Savings institutions .............................................. 1,248 4 0 5 505 627 20 28 51 8 

Total assets (in billions) .......................................... $13,300.8 $450.2 $2,980.5 $165.6 $5,359.5 $1,379.0 $71.3 $32.9 $99.2 $2,762.6 

Commercial banks ............................................... 11,426.2 431.1 2,980.5 165.2 4,799.4 227.9 32.9 29.8 86.7 2,672.5 

Savings institutions .............................................. 1,874.6 19.0 0.0 0.5 560.0 1,151.1 38.4 3.1 12.5 90.1 

Total deposits (in billions) ....................................... 8,572.7 150.5 1,844.5 132.6 3,707.3 806.5 58.8 23.6 81.3 1,767.6 

Commercial banks ............................................... 7,422.7 143.6 1,844.5 132.2 3,372.8 88.0 26.5 21.7 71.3 1,722.1 

Savings institutions .............................................. 1,150.0 6.9 0.0 0.4 334.5 718.5 32.4 1.9 10.0 45.5 

Net income (in millions) .......................................... 4,959 2,702 1,977 485 3,414 -5,017 148 159 251 841 

Commercial banks ............................................... 10,156 2,497 1,977 484 3,214 746 47 109 237 845 

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

Performance Ratios (annualized,%) 

-5,197 205 0 1 200 -5,763 101 50 14 -4 

Yield on earning assets .......................................... 5.76 11.86 5.21 6.38 5.95 5.96 6.71 4.76 6.03 4.86 

Cost of funding earning assets ............................... 2.38 2.78 2.35 2.50 2.30 2.98 2.10 1.71 2.34 2.23 

Net interest margin .............................................. 3.37 9.08 2.86 3.87 3.65 2.98 4.61 3.04 3.68 2.63 

Noninterest income to assets ................................. 1.83 8.40 1.83 0.67 1.58 0.92 2.19 13.85 0.96 1.62 

Noninterest expense to assets ............................... 2.93 7.14 2.91 2.60 3.06 2.27 3.22 13.27 2.95 2.22 

Loan and lease loss provision to assets ................. 1.51 5.44 0.95 0.23 1.19 3.57 2.40 0.22 0.17 1.16 

Net operating income to assets .............................. 0.19 2.00 0.29 1.17 0.26 -1.38 0.63 1.89 1.00 0.31 

Pretax return on assets .......................................... 0.21 3.60 0.29 1.39 0.50 -2.32 1.20 3.05 1.23 0.11 

Return on assets .................................................... 0.15 2.41 0.26 1.18 0.26 -1.46 0.82 1.90 1.02 0.12 

Return on equity ..................................................... 1.46 10.73 3.38 10.63 2.25 -18.24 8.93 8.95 9.00 1.28 

Net charge-offs to loans and leases ....................... 1.32 5.87 1.27 0.25 0.99 1.85 1.75 0.52 0.29 0.94 

Loan and lease loss provision to net charge-offs ... 190.30 127.46 184.47 140.29 170.90 269.93 164.54 171.75 105.08 235.78 

Efficiency ratio ........................................................ 59.13 42.43 68.59 61.21 59.29 61.58 49.11 79.86 67.52 56.22 

% of unprofitable institutions .................................. 17.86 22.22 33.33 5.37 23.53 16.80 15.31 21.57 7.80 18.60 

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

Structural Changes 

42.56 29.63 50.00 52.59 35.65 55.27 51.02 38.56 51.85 46.51 

New Charters ...................................................... 24 0 0 1 7 0 0 16 0 0 

Institutions absorbed by mergers ........................ 64 0 0 6 50 3 1 0 2 2 

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

PRIOR SECOND QUARTERS 

(The way it was...) 

2 0 0 0 2 0 0 0 0 0 

Return on assets (%) .................................... 2007 1.21 3.34 0.99 1.26 1.17 0.91 3.04 2.31 1.10 1.26 

................................... 2005 1.28 3.18 0.71 1.35 1.35 1.22 1.40 1.60 1.09 1.37 

................................... 2003 1.38 4.01 1.04 1.26 1.31 1.49 1.49 0.65 1.08 1.29 

Net charge-offs to loans & leases (%) .......... 2007 0.49 3.89 0.60 0.15 0.28 0.25 1.85 0.25 0.18 0.32 

................................... 2005 0.42 4.18 0.66 0.15 0.21 0.09 1.11 0.40 0.34 0.17 

................................... 2003 0.79 5.37 1.39 0.25 0.56 0.18 0.89 0.55 0.31 0.56 

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

FDIC Quarterly 6 2008, Volume 2, No. 3 
 

Quarterly Banking Profile 

TABLE III-A. Second Quarter 2008, All FDIC-Insured Institutions TABLE III-A. Second Quarter 2008, All FDIC-Insured Institutions 

SECOND QUARTER 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,451 3,304 4,473 558 116 1,034 1,213 1,738 1,960 1,722 784 

Commercial banks .............................................. 7,203 2,939 3,756 424 84 540 1,069 1,434 1,853 1,595 712 

Savings institutions ............................................. 1,248 365 717 134 32 494 144 304 107 127 72 

Total assets (in billions) ......................................... $13,300.8 $177.1 $1,333.4 $1,464.5 $10,325.7 $2,477.2 $3,396.9 $2,937.7 $990.5 $763.8 $2,734.7 

Commercial banks .............................................. 11,426.2 158.3 1,084.7 1,131.6 9,051.6 1,786.7 3,133.2 2,792.2 948.0 634.7 2,131.4 

Savings institutions ............................................. 1,874.6 18.8 248.7 332.9 1,274.2 690.5 263.8 145.4 42.5 129.1 603.3 

Total deposits (in billions) ...................................... 8,572.7 143.8 1,048.6 1,028.9 6,351.4 1,532.0 2,227.0 1,881.7 689.6 550.1 1,692.3 

Commercial banks .............................................. 7,422.7 129.5 864.9 796.4 5,631.8 1,072.2 2,061.0 1,778.7 660.0 475.7 1,375.1 

Savings institutions ............................................. 1,150.0 14.3 183.6 232.5 719.6 459.8 166.0 103.0 29.6 74.4 317.2 

Net income (in millions) ......................................... 4,959 260 1,862 964 1,873 4,735 1,374 824 2,265 1,121 -5,360 

Commercial banks .............................................. 10,156 220 1,688 651 7,597 3,957 2,698 796 2,266 1,212 -773 

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

Performance Ratios (annualized,%) 

-5,197 40 174 313 -5,724 778 -1,324 28 -1 -91 -4,586 

Yield on earning assets ......................................... 5.76 6.30 6.30 6.12 5.62 5.98 5.42 5.10 6.40 5.98 6.37 

Cost of funding earning assets .............................. 2.38 2.45 2.62 2.50 2.33 2.42 2.45 2.31 2.04 2.28 2.51 

Net interest margin ............................................. 3.37 3.85 3.68 3.62 3.28 3.57 2.97 2.79 4.36 3.70 3.85 

Noninterest income to assets ................................ 1.83 1.45 1.08 1.30 2.00 2.11 1.76 1.95 3.18 1.44 1.14 

Noninterest expense to assets .............................. 2.93 3.92 3.19 3.04 2.86 2.97 2.61 2.91 3.92 3.24 2.86 

Loan and lease loss provision to assets ............... 1.51 0.31 0.53 1.06 1.71 1.03 1.48 1.19 1.64 0.80 2.44 

Net operating income to assets ............................. 0.19 0.55 0.55 0.26 0.13 0.77 0.15 0.06 0.93 0.56 -0.52 

Pretax return on assets ......................................... 0.21 0.80 0.75 0.49 0.10 1.15 0.18 0.30 1.37 0.79 -1.25 

Return on assets ................................................... 0.15 0.59 0.56 0.27 0.07 0.76 0.16 0.11 0.92 0.59 -0.78 

Return on equity .................................................... 1.46 4.36 5.40 2.41 0.72 6.33 1.59 1.22 9.44 6.01 -7.90 

Net charge-offs to loans and leases ...................... 1.32 0.28 0.45 0.97 1.54 1.33 1.14 1.27 1.31 0.64 1.79 

Loan and lease loss provision to net charge-offs .. 190.30 175.85 166.52 156.74 195.09 138.35 211.80 176.72 183.33 187.30 215.60 

Efficiency ratio ....................................................... 59.13 78.31 70.07 59.12 57.49 55.00 59.06 62.23 55.04 64.97 60.85 

% of unprofitable institutions ................................. 17.86 22.28 14.40 16.85 30.17 17.89 32.15 14.33 12.09 11.32 32.27 

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

Structural Changes 

42.56 42.77 43.24 39.25 26.72 50.39 26.05 47.07 45.66 46.92 30.48 

New Charters ..................................................... 24 23 1 0 0 8 8 0 2 2 4 

Institutions absorbed by mergers ....................... 64 26 29 8 1 8 19 15 7 11 4 

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

PRIOR SECOND QUARTERS 

(The way it was...) 

2 1 0 1 0 0 0 0 1 1 0 

Return on assets (%) ................................... 2007 1.21 0.85 1.14 1.11 1.25 1.04 1.25 1.05 1.54 1.15 1.41 

................................... 2005 1.28 1.09 1.24 1.35 1.28 1.29 1.34 0.93 1.55 1.28 1.63 

................................... 2003 1.38 0.89 1.19 1.50 1.41 1.25 1.39 1.34 1.57 1.41 1.64 

Net charge-offs to loans & leases (%) ........ 2007 0.49 0.14 0.18 0.33 0.57 0.84 0.26 0.37 0.63 0.23 0.59 

................................... 2005 0.42 0.19 0.19 0.24 0.51 0.69 0.18 0.26 0.51 0.23 0.63 

................................... 2003 0.79 0.30 0.31 0.65 0.94 1.14 0.57 0.68 1.05 0.39 0.70 

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

FDIC Quarterly 7 2008, Volume 2, No. 3 
TABLE IV-A. First Half 2008, All FDIC-Insured Institutions TABLE IV-A. First Half 2008, All FDIC-Insured Institutions 

FIRST HALF 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,451 27 6 1,584 4,786 845 98 306 756 43 

Commercial banks ............................................... 7,203 23 6 1,579 4,281 218 78 278 705 35 

Savings institutions .............................................. 1,248 4 0 5 505 627 20 28 51 8 

Total assets (in billions) .......................................... $13,300.8 $450.2 $2,980.5 $165.6 $5,359.5 $1,379.0 $71.3 $32.9 $99.2 $2,762.6 

Commercial banks ............................................... 11,426.2 431.1 2,980.5 165.2 4,799.4 227.9 32.9 29.8 86.7 2,672.5 

Savings institutions .............................................. 1,874.6 19.0 0.0 0.5 560.0 1,151.1 38.4 3.1 12.5 90.1 

Total deposits (in billions) ....................................... 8,572.7 150.5 1,844.5 132.6 3,707.3 806.5 58.8 23.6 81.3 1,767.6 

Commercial banks ............................................... 7,422.7 143.6 1,844.5 132.2 3,372.8 88.0 26.5 21.7 71.3 1,722.1 

Savings institutions .............................................. 1,150.0 6.9 0.0 0.4 334.5 718.5 32.4 1.9 10.0 45.5 

Net income (in millions) .......................................... 24,222 7,883 4,577 967 13,653 -5,737 370 387 499 1,622 

Commercial banks ............................................... 29,395 7,533 4,577 965 12,588 1,236 176 272 476 1,572 

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

Performance Ratios (annualized,%) 

-5,173 350 0 2 1,065 -6,973 195 115 24 50 

Yield on earning assets .......................................... 6.02 12.01 5.51 6.55 6.22 6.10 7.05 4.94 6.16 5.17 

Cost of funding earning assets ............................... 2.67 3.18 2.64 2.69 2.56 3.24 2.38 1.87 2.49 2.55 

Net interest margin .............................................. 3.35 8.84 2.87 3.87 3.66 2.86 4.67 3.07 3.66 2.61 

Noninterest income to assets ................................. 1.84 9.72 1.84 0.67 1.59 1.07 2.15 13.01 0.95 1.35 

Noninterest expense to assets ............................... 2.85 6.70 2.83 2.61 2.98 2.29 3.17 12.03 2.95 2.15 

Loan and lease loss provision to assets ................. 1.32 5.29 0.96 0.20 1.03 2.73 2.08 0.15 0.15 1.03 

Net operating income to assets .............................. 0.38 3.08 0.33 1.17 0.49 -0.82 0.88 2.29 0.99 0.27 

Pretax return on assets ........................................... 0.53 5.38 0.38 1.41 0.83 -1.35 1.56 3.55 1.23 0.15 

Return on assets ..................................................... 0.37 3.50 0.31 1.19 0.52 -0.84 1.05 2.33 1.02 0.12 

Return on equity ..................................................... 3.58 15.74 3.91 10.67 4.55 -10.27 11.36 10.89 9.00 1.23 

Net charge-offs to loans and leases ....................... 1.16 5.38 1.20 0.21 0.85 1.50 1.72 0.39 0.22 0.78 

Loan and lease loss provision to net charge-offs ... 190.07 132.95 192.95 147.35 171.46 255.72 143.42 152.78 126.49 248.95 

Efficiency ratio ........................................................ 57.93 36.92 66.32 61.61 58.56 61.26 48.09 76.24 68.05 58.74 

% of unprofitable institutions ................................... 16.73 11.11 16.67 4.29 22.17 16.92 14.29 19.93 7.41 16.28 

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

Condition Ratios (%) 

44.95 44.44 50.00 57.51 38.15 52.31 53.06 43.79 53.31 37.21 

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

Loss Allowance to: 

86.02 78.78 81.81 91.47 87.78 91.30 93.88 87.42 91.57 84.95 

Loans and leases ................................................ 1.80 5.37 2.07 1.28 1.51 2.05 1.98 1.44 1.20 1.44 

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

Noncurrent assets plus 

88.55 233.60 120.04 95.85 72.88 65.63 217.38 150.22 108.47 92.38 

other real estate owned to assets ........................ 1.38 1.67 0.76 1.07 1.67 2.55 0.80 0.28 0.79 0.91 

Equity capital ratio .................................................. 10.16 21.98 7.86 10.94 11.31 7.90 9.39 21.18 11.18 9.42 

Core capital (leverage) ratio ................................... 7.89 14.42 6.21 10.13 8.82 7.83 9.13 18.23 10.91 6.60 

Tier 1 risk-based capital ratio .................................. 10.10 13.78 8.64 13.51 10.28 12.88 10.80 39.80 17.72 8.69 

Total risk-based capital ratio ................................... 12.86 16.34 12.56 14.57 12.53 14.80 12.84 40.66 18.84 11.88 

Net loans and leases to deposits ............................ 91.59 205.78 64.31 82.57 100.53 119.90 100.66 32.59 67.64 80.94 

Net loans to total assets ......................................... 59.03 68.81 39.80 66.08 69.54 70.12 83.04 23.38 55.43 51.79 

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

Structural Changes 

52.85 30.99 25.49 80.03 65.88 58.43 81.24 68.29 81.96 54.26 

New Charters ....................................................... 62 0 0 1 17 1 0 43 0 0 

Institutions absorbed by mergers ........................ 141 0 0 18 102 9 1 1 7 3 

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

PRIOR FIRST HALVES 

(The way it was...) 

4 0 0 1 3 0 0 0 0 0 

Number of institutions ................................... 2007 8,614 26 4 1,645 4,731 805 118 377 851 57 

.................................... 2005 8,868 29 6 1,731 4,545 953 118 422 1,005 59 

.................................... 2003 9,268 37 6 1,826 4,118 1,045 183 524 1,429 100 

Total assets (in billions) ................................ 2007 $12,261.4 $395.0 $2,544.3 $155.6 $4,789.1 $1,551.0 $117.7 $42.4 $113.1 $2,553.3 

.................................... 2005 10,474.4 372.3 1,927.3 139.0 3,648.1 1,642.0 146.2 49.9 127.5 2,422.2 

.................................... 2003 8,923.3 294.1 1,429.3 127.7 3,122.3 1,407.6 379.6 64.6 195.2 1,902.9 

Return on assets (%) .................................... 2007 1.20 3.58 0.96 1.22 1.15 0.91 2.54 2.23 1.07 1.27 

.................................... 2005 1.31 3.18 0.81 1.31 1.34 1.21 1.35 1.58 1.14 1.44 

.................................... 2003 1.38 3.79 1.06 1.24 1.32 1.51 1.53 0.95 1.08 1.27 

Net charge-offs to loans & leases (%) .......... 2007 0.47 3.84 0.58 0.15 0.25 0.24 1.86 0.23 0.16 0.31 

.................................... 2005 0.44 4.26 0.70 0.13 0.21 0.09 1.16 0.31 0.29 0.17 

Noncurrent assets plus 

.................................... 2003 0.80 5.36 1.42 0.20 0.56 0.18 0.90 0.45 0.28 0.58 

OREO to assets (%) .................................. 2007 0.62 1.28 0.41 0.81 0.69 0.81 0.63 0.23 0.60 0.46 

.................................... 2005 0.48 1.17 0.53 0.68 0.48 0.41 0.44 0.26 0.60 0.37 

.................................... 2003 0.81 1.42 1.00 1.00 0.81 0.66 0.81 0.42 0.74 0.67 

Equity capital ratio (%) .................................. 2007 10.43 23.96 7.64 11.13 10.68 10.22 13.73 20.98 11.10 10.39 

.................................... 2005 10.38 21.70 8.46 10.96 10.09 10.89 12.08 18.40 11.06 9.91 

.................................... 2003 9.09 17.13 7.08 10.87 9.39 9.01 8.58 15.34 11.04 8.51 

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

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

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

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

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

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

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

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

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

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

activity with no identified asset concentrations. 

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

activity with no identified asset concentrations. 

FDIC Quarterly 8 2008, Volume 2, No. 3 
 

Quarterly Banking Profile 

TABLE IV-A. First Half 2008, All FDIC-Insured Institutions TABLE IV-A. First Half 2008, All FDIC-Insured Institutions 

FIRST HALF 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than $100 

Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,451 3,304 4,473 558 116 1,034 1,213 1,738 1,960 1,722 784 

Commercial banks ............................................... 7,203 2,939 3,756 424 84 540 1,069 1,434 1,853 1,595 712 

Savings institutions .............................................. 1,248 365 717 134 32 494 144 304 107 127 72 

Total assets (in billions) .......................................... $13,300.8 $177.1 $1,333.4 $1,464.5 $10,325.7 $2,477.2 $3,396.9 $2,937.7 $990.5 $763.8 $2,734.7 

Commercial banks ............................................... 11,426.2 158.3 1,084.7 1,131.6 9,051.6 1,786.7 3,133.2 2,792.2 948.0 634.7 2,131.4 

Savings institutions .............................................. 1,874.6 18.8 248.7 332.9 1,274.2 690.5 263.8 145.4 42.5 129.1 603.3 

Total deposits (in billions) ....................................... 8,572.7 143.8 1,048.6 1,028.9 6,351.4 1,532.0 2,227.0 1,881.7 689.6 550.1 1,692.3 

Commercial banks ............................................... 7,422.7 129.5 864.9 796.4 5,631.8 1,072.2 2,061.0 1,778.7 660.0 475.7 1,375.1 

Savings institutions .............................................. 1,150.0 14.3 183.6 232.5 719.6 459.8 166.0 103.0 29.6 74.4 317.2 

Net income (in millions) .......................................... 24,222 592 4,431 3,635 15,563 11,095 4,047 6,249 5,595 2,837 -5,600 

Commercial banks ............................................... 29,395 492 4,004 3,118 21,780 9,379 5,792 6,059 5,588 2,797 -222 

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

Performance Ratios (annualized,%) 

-5,173 100 427 517 -6,217 1,715 -1,746 190 6 40 -5,379 

Yield on earning assets .......................................... 6.02 6.45 6.49 6.36 5.90 6.23 5.70 5.41 6.62 6.24 6.60 

Cost of funding earning assets ............................... 2.67 2.59 2.81 2.73 2.64 2.70 2.73 2.59 2.35 2.54 2.80 

Net interest margin .............................................. 3.35 3.86 3.68 3.63 3.26 3.53 2.98 2.82 4.27 3.70 3.80 

Noninterest income to assets ................................. 1.84 1.52 1.05 1.40 2.00 2.22 1.65 2.02 3.20 1.45 1.15 

Noninterest expense to assets ............................... 2.85 3.92 3.14 2.97 2.77 2.91 2.54 2.71 3.83 3.17 2.89 

Loan and lease loss provision to assets ................. 1.32 0.28 0.43 0.93 1.51 1.01 1.29 1.11 1.39 0.69 2.01 

Net operating income to assets .............................. 0.38 0.64 0.65 0.49 0.33 0.88 0.26 0.37 1.10 0.70 -0.25 

Pretax return on assets .......................................... 0.53 0.91 0.89 0.83 0.44 1.37 0.33 0.70 1.72 1.00 -0.69 

Return on assets .................................................... 0.37 0.68 0.68 0.51 0.30 0.90 0.24 0.43 1.15 0.76 -0.41 

Return on equity ..................................................... 3.58 4.98 6.47 4.59 3.01 7.50 2.33 4.68 11.70 7.71 -4.10 

Net charge-offs to loans and leases ....................... 1.16 0.24 0.37 0.83 1.35 1.23 0.95 1.05 1.23 0.55 1.58 

Loan and lease loss provision to net charge-offs ... 190.07 180.89 165.23 159.14 194.39 145.07 219.97 196.42 164.96 188.57 200.41 

Efficiency ratio ........................................................ 57.93 77.23 69.80 58.13 56.15 52.98 58.71 57.93 54.24 64.35 62.38 

% of unprofitable institutions .................................. 16.73 21.49 13.28 14.16 26.72 18.09 30.83 13.69 9.64 10.92 30.36 

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

Condition Ratios (%) 

44.95 46.37 44.91 41.22 24.14 50.58 26.22 48.33 50.66 50.41 32.78 

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

Loss Allowance to: 

86.02 91.71 91.65 90.51 84.56 86.09 85.62 85.48 86.31 89.59 85.93 

Loans and leases ................................................ 1.80 1.29 1.25 1.49 1.96 1.77 1.65 1.80 1.79 1.34 2.16 

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

Noncurrent assets plus 

88.55 87.48 71.74 67.51 94.79 117.41 81.76 85.38 83.15 78.43 87.30 

other real estate owned to assets ....................... 1.38 1.20 1.57 1.77 1.30 0.92 1.43 1.26 1.69 1.35 1.74 

Equity capital ratio .................................................. 10.16 13.36 10.28 10.96 9.98 12.05 10.06 9.20 9.72 9.86 9.84 

Core capital (leverage) ratio ................................... 7.89 13.18 9.83 9.32 7.34 8.74 6.90 7.23 7.98 8.85 8.76 

Tier 1 risk-based capital ratio ................................. 10.10 19.13 12.98 11.73 9.37 11.97 8.72 8.94 9.37 11.18 11.58 

Total risk-based capital ratio .................................. 12.86 20.16 14.08 13.09 12.56 14.09 11.58 12.01 12.07 12.86 14.72 

Net loans and leases to deposits ........................... 91.59 77.61 89.34 98.97 91.08 90.38 92.67 81.97 96.00 91.12 100.32 

Net loans to total assets ......................................... 59.03 63.00 70.25 69.53 56.03 55.90 60.76 52.50 66.84 65.63 62.08 

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

Structural Changes 

52.85 81.17 78.51 69.60 46.67 52.56 58.42 49.35 62.86 71.20 41.19 

New Charters ...................................................... 62 61 1 0 0 15 22 0 3 9 13 

Institutions absorbed by mergers ........................ 141 57 62 19 3 18 35 25 29 28 6 

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

PRIOR FIRST HALVES 

(The way it was...) 

4 3 0 1 0 0 0 0 3 1 0 

Number of institutions ................................... 2007 8,614 3,582 4,371 538 123 1,070 1,216 1,806 2,000 1,750 772 

................................... 2005 8,868 3,996 4,266 492 114 1,109 1,214 1,897 2,079 1,812 757 

................................... 2003 9,268 4,509 4,183 466 110 1,194 1,236 2,034 2,145 1,884 775 

Total assets (in billions) ................................ 2007 $12,261.4 $189.8 $1,295.4 $1,410.7 $9,365.5 $2,261.8 $3,004.5 $2,830.9 $910.0 $674.4 $2,579.7 

................................... 2005 10,474.4 207.5 1,209.8 1,351.2 7,705.9 2,729.8 2,579.4 2,426.9 765.4 570.0 1,402.8 

................................... 2003 8,923.3 231.4 1,154.0 1,303.1 6,234.8 3,053.6 1,867.3 1,678.4 439.6 596.4 1,288.0 

Return on assets (%) .................................... 2007 1.20 0.85 1.11 1.13 1.24 1.08 1.23 1.06 1.64 1.13 1.30 

................................... 2005 1.31 1.07 1.23 1.34 1.32 1.28 1.40 0.97 1.61 1.28 1.63 

................................... 2003 1.38 0.96 1.19 1.46 1.42 1.25 1.37 1.36 1.55 1.41 1.66 

Net charge-offs to loans & leases (%) .......... 2007 0.47 0.14 0.16 0.29 0.56 0.82 0.24 0.34 0.63 0.21 0.58 

................................... 2005 0.44 0.15 0.18 0.24 0.54 0.72 0.19 0.29 0.55 0.21 0.63 

................................... 2003 

Noncurrent assets plus 

0.80 0.25 0.29 0.59 0.98 1.19 0.59 0.66 1.04 0.38 0.67 

OREO to assets (%) ................................... 2007 0.62 0.81 0.75 0.67 0.59 0.58 0.42 0.63 1.10 0.66 0.68 

................................... 2005 0.48 0.72 0.54 0.44 0.47 0.49 0.31 0.55 0.76 0.58 0.47 

................................... 2003 0.81 0.93 0.74 0.66 0.84 0.87 0.66 0.95 0.79 0.79 0.68 

Equity capital ratio (%) .................................. 2007 10.43 13.42 10.48 11.28 10.24 12.48 9.83 9.01 10.00 10.57 11.01 

................................... 2005 10.38 12.16 10.29 10.86 10.26 10.70 10.00 9.30 10.83 9.64 12.34 

................................... 2003 9.09 11.44 10.07 10.33 8.57 8.80 8.80 8.57 10.76 9.57 10.12 

* Regions: 

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

Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

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

FDIC Quarterly 9 2008, Volume 2, No. 3 
TABLE V-A. Loan Performance, All FDIC-Insured Institutions TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

June 30, 2008 All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ......................................... 1.59 2.24 2.40 1.27 1.35 1.87 0.90 1.11 1.63 1.58 

Construction and development ....................................... 2.01 0.00 1.19 2.78 2.10 2.68 2.86 1.30 1.65 1.08 

Nonfarm nonresidential ................................................... 0.72 0.00 0.61 1.09 0.76 0.61 0.53 0.84 1.37 0.41 

Multifamily residential real estate .................................... 0.68 0.00 0.25 1.18 0.81 0.43 0.16 0.31 1.49 0.47 

Home equity loans .......................................................... 1.05 2.41 1.07 0.53 0.81 1.55 0.73 0.41 0.81 1.14 

Other 1-4 family residential ............................................. 2.16 1.03 3.50 1.76 1.80 2.06 0.96 1.34 1.88 2.20 

Commercial and industrial loans ........................................ 0.77 3.27 0.42 1.61 0.78 0.89 1.29 0.94 1.64 0.74 

Loans to individuals ............................................................ 1.96 2.40 1.84 1.97 1.96 1.55 1.95 1.52 2.15 1.54 

Credit card loans ............................................................. 2.30 2.32 2.37 1.25 2.16 2.61 1.15 1.90 1.24 2.41 

Other loans to individuals ................................................ 1.76 2.89 1.61 2.02 1.92 0.86 2.23 1.48 2.17 1.40 

All other loans and leases (including farm) ........................ 0.50 0.14 0.55 0.68 0.71 0.45 0.06 0.73 0.67 0.18 

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

Percent of Loans Noncurrent** 

1.40 2.37 1.46 1.22 1.25 1.83 1.51 1.12 1.63 1.23 

All real estate loans ............................................................ 2.70 1.96 2.70 1.64 2.68 3.26 0.89 1.06 1.16 2.35 

Construction and development ....................................... 6.08 0.00 4.12 6.72 5.93 8.73 4.35 1.53 3.19 6.74 

Nonfarm nonresidential ................................................... 1.18 0.00 0.61 1.49 1.15 1.03 1.27 0.89 1.23 1.49 

Multifamily residential real estate .................................... 1.20 0.00 0.94 1.47 1.44 0.60 0.53 2.55 1.50 0.94 

Home equity loans .......................................................... 1.31 2.15 0.90 0.42 0.89 2.76 0.44 0.14 0.37 1.36 

Other 1-4 family residential ............................................. 3.11 0.51 3.93 1.10 3.04 3.44 1.08 1.13 1.00 2.42 

Commercial and industrial loans ........................................ 0.90 3.00 0.45 1.50 1.02 1.19 0.72 1.20 1.48 0.78 

Loans to individuals ............................................................ 1.46 2.36 1.94 0.77 0.83 1.17 0.97 0.46 0.77 0.69 

Credit card loans ............................................................. 2.38 2.32 2.96 1.43 1.98 2.58 1.21 1.08 0.75 2.33 

Other loans to individuals ................................................ 0.91 2.57 1.51 0.73 0.64 0.24 0.88 0.41 0.77 0.43 

All other loans and leases (including farm) ........................ 0.65 0.08 1.21 0.64 0.49 0.35 0.04 0.95 0.66 0.20 

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

Percent of Loans Charged-off (net, YTD) 

2.04 2.30 1.72 1.34 2.07 3.12 0.91 0.96 1.11 1.56 

All real estate loans ............................................................ 0.94 3.04 1.42 0.18 0.73 1.46 0.52 0.10 0.11 0.82 

Construction and development ....................................... 1.66 0.00 1.18 1.13 1.62 2.87 0.22 0.64 0.26 1.75 

Nonfarm nonresidential ................................................... 0.14 0.00 0.00 0.12 0.15 0.13 0.07 0.05 0.09 0.15 

Multifamily residential real estate .................................... 0.17 0.00 0.02 0.12 0.21 0.07 0.13 0.10 0.01 0.22 

Home equity loans .......................................................... 1.79 3.28 1.64 0.22 1.21 3.58 0.60 0.00 0.23 1.68 

Other 1-4 family residential ............................................. 0.98 1.03 1.79 0.10 0.68 1.23 0.50 0.02 0.10 0.67 

Commercial and industrial loans ........................................ 0.77 7.41 0.26 0.37 0.78 1.36 4.29 0.14 0.33 0.47 

Loans to individuals ............................................................ 3.18 5.54 3.16 0.63 2.21 2.63 2.24 0.54 0.65 1.60 

Credit card loans ............................................................. 5.12 5.38 4.09 3.88 5.50 5.63 3.54 2.63 1.71 5.16 

Other loans to individuals ................................................ 1.99 6.57 2.76 0.41 1.62 0.72 1.79 0.33 0.63 1.00 

All other loans and leases (including farm) ........................ 0.28 0.01 0.05 0.00 0.55 0.33 0.09 2.30 0.00 0.34 

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

Loans Outstanding (in billions) 

1.16 5.38 1.20 0.21 0.85 1.50 1.72 0.39 0.22 0.78 

All real estate loans ............................................................ $4,794.1 $1.7 $457.3 $62.8 $2,493.6 $921.8 $21.2 $4.3 $38.0 $793.3 

Construction and development ....................................... 627.2 0.0 9.8 6.0 523.5 24.7 0.8 0.4 2.7 59.3 

Nonfarm nonresidential ................................................... 1,019.1 0.0 23.7 17.5 801.0 39.8 0.9 1.3 9.1 125.5 

Multifamily residential real estate .................................... 210.7 0.0 9.3 1.2 138.4 44.4 0.1 0.1 0.6 16.7 

Home equity loans .......................................................... 646.9 1.5 100.7 1.2 275.6 111.3 10.5 0.1 1.4 144.6 

Other 1-4 family residential ............................................. 2,154.2 0.2 256.2 16.1 710.9 700.7 8.8 2.2 21.4 437.7 

Commercial and industrial loans ........................................ 1,492.5 35.5 309.1 15.9 779.8 18.0 3.4 1.2 6.1 323.6 

Loans to individuals ............................................................ 1,069.5 271.7 232.3 6.6 301.1 41.6 34.8 1.5 7.2 172.8 

Credit card loans ............................................................. 396.0 233.3 69.6 0.4 43.6 16.5 8.9 0.1 0.1 23.5 

Other loans to individuals ................................................ 673.5 38.4 162.7 6.2 257.5 25.2 25.9 1.3 7.1 149.3 

All other loans and leases (including farm) ........................ 642.5 18.5 213.4 25.6 210.5 5.9 1.2 0.8 4.4 162.4 

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

Memo: Other Real Estate Owned (in millions) 

7,998.6 327.3 1,212.0 110.9 3,785.0 987.3 60.5 7.8 55.7 1,452.1 

All other real estate owned ................................................. 18,910.1 -17.5 1,503.1 280.9 11,124.0 4,359.7 20.6 15.7 171.1 1,452.6 

Construction and development ....................................... 4,815.2 0.0 1.0 104.0 4,257.6 365.4 2.9 2.3 27.3 54.8 

Nonfarm nonresidential ................................................... 2,049.6 0.2 11.0 78.7 1,563.3 55.6 3.5 8.0 49.6 279.8 

Multifamily residential real estate .................................... 555.4 0.0 1.0 12.7 373.2 58.1 0.0 0.0 24.8 85.5 

1-4 family residential ....................................................... 9,869.2 3.6 898.1 63.8 4,004.1 3,790.9 13.3 5.6 64.4 1,025.5 

Farmland ......................................................................... 72.0 0.0 0.0 21.6 44.2 0.3 1.0 0.0 4.9 0.0 

GNMA properties ............................................................. 1,391.5 0.0 399.0 0.2 877.2 108.2 0.0 0.0 0.1 6.8 

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

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

FDIC Quarterly 10 2008, Volume 2, No. 3 
Quarterly Banking Profile 

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

June 30, 2008 

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate .............................. 1.59 1.59 1.29 1.18 1.75 1.08 1.68 1.69 1.18 1.38 2.00 

Construction and development ............................. 2.01 2.11 2.08 2.01 1.98 1.92 1.87 2.39 1.61 1.60 2.52 

Nonfarm nonresidential ........................................ 0.72 1.27 0.98 0.74 0.55 0.76 0.62 1.03 0.69 0.61 0.52 

Multifamily residential real estate ......................... 0.68 1.12 1.05 0.92 0.52 0.62 1.13 1.49 0.54 0.67 0.24 

Home equity loans ................................................ 1.05 0.76 0.80 0.71 1.10 0.61 1.26 0.84 0.96 0.64 1.35 

Other 1-4 family residential ................................... 2.16 1.94 1.32 1.24 2.42 1.19 2.25 2.30 1.71 2.30 2.84 

Commercial and industrial loans ............................. 0.77 1.49 1.16 0.91 0.70 1.10 0.80 0.80 0.90 0.69 0.46 

Loans to individuals ................................................. 1.96 2.33 1.75 1.97 1.97 2.19 1.84 1.68 2.50 1.44 1.89 

Credit card loans .................................................. 2.30 1.94 2.32 2.32 2.30 2.28 2.48 2.04 2.29 1.15 2.49 

Other loans to individuals ..................................... 1.76 2.33 1.71 1.76 1.76 2.05 1.76 1.57 2.65 1.50 1.49 

All other loans and leases (including farm) ............. 0.50 0.66 0.57 0.65 0.48 0.53 0.26 0.72 0.54 0.56 0.48 

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

Percent of Loans Noncurrent** 

1.40 1.54 1.27 1.18 1.46 1.27 1.42 1.38 1.24 1.21 1.61 

All real estate loans ................................................. 2.70 1.65 1.97 2.67 2.90 1.52 2.78 3.14 3.12 2.14 3.22 

Construction and development ............................. 6.08 3.76 5.29 7.01 6.03 4.45 5.85 7.28 5.21 3.79 8.82 

Nonfarm nonresidential ........................................ 1.18 1.57 1.21 1.05 1.22 1.58 1.00 1.73 0.96 0.84 0.69 

Multifamily residential real estate ......................... 1.20 1.95 1.43 2.06 0.86 0.66 1.47 3.25 0.87 1.95 0.61 

Home equity loans ................................................ 1.31 0.70 0.67 0.76 1.40 0.68 1.76 0.91 1.09 0.39 1.75 

Other 1-4 family residential ................................... 3.11 1.31 1.21 1.94 3.58 1.25 2.99 3.64 6.03 2.70 3.91 

Commercial and industrial loans ............................. 0.90 1.51 1.24 1.05 0.84 1.29 0.77 0.91 0.95 0.91 0.77 

Loans to individuals ................................................. 1.46 0.95 0.63 1.10 1.53 1.91 0.76 0.98 1.52 0.56 1.93 

Credit card loans .................................................. 2.38 1.15 1.43 2.10 2.42 2.44 2.14 1.92 2.12 1.09 2.72 

Other loans to individuals ..................................... 0.91 0.94 0.58 0.48 0.97 1.07 0.58 0.67 1.06 0.44 1.40 

All other loans and leases (including farm) ............. 0.65 0.72 0.56 0.44 0.67 0.65 0.21 0.60 0.35 0.64 1.53 

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

Percent of Loans Charged-off (net, YTD) 

2.04 1.48 1.75 2.21 2.06 1.51 2.02 2.11 2.16 1.70 2.48 

All real estate loans ................................................. 0.94 0.18 0.29 0.63 1.17 0.28 0.97 1.20 0.71 0.48 1.44 

Construction and development ............................. 1.66 0.52 0.87 1.78 2.00 0.69 1.39 2.37 1.29 1.08 2.77 

Nonfarm nonresidential ........................................ 0.14 0.13 0.10 0.13 0.17 0.15 0.12 0.29 0.11 0.07 0.05 

Multifamily residential real estate ......................... 0.17 0.03 0.10 0.32 0.14 0.05 0.39 0.47 0.05 0.20 0.06 

Home equity loans ................................................ 1.79 0.31 0.32 0.58 1.98 0.64 2.19 1.18 1.67 0.66 2.84 

Other 1-4 family residential ................................... 0.98 0.14 0.18 0.41 1.18 0.25 0.86 1.44 0.46 0.41 1.63 

Commercial and industrial loans ............................. 0.77 0.46 0.55 0.80 0.80 1.34 0.60 0.52 1.35 0.52 0.74 

Loans to individuals ................................................. 3.18 0.63 1.19 2.83 3.34 4.26 1.89 2.07 3.77 1.28 3.76 

Credit card loans .................................................. 5.12 2.01 7.33 5.12 5.10 5.20 5.74 4.79 5.72 3.31 4.89 

Other loans to individuals ..................................... 1.99 0.61 0.73 1.45 2.16 2.70 1.38 1.17 2.22 0.80 3.00 

All other loans and leases (including farm) ............. 0.28 0.08 0.30 0.68 0.26 0.18 0.41 0.35 0.24 0.40 0.10 

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

Loans Outstanding (in billions) 

1.16 0.24 0.37 0.83 1.35 1.23 0.95 1.05 1.23 0.55 1.58 

All real estate loans ................................................. $4,794.1 $76.6 $736.0 $749.7 $3,231.8 $825.3 $1,354.3 $858.8 $370.2 $342.6 $1,042.9 

Construction and development ............................. 627.2 10.2 143.6 164.7 308.7 68.2 203.1 121.4 52.6 88.0 94.0 

Nonfarm nonresidential ........................................ 1,019.1 22.3 255.2 251.5 490.1 196.5 261.7 195.1 97.5 111.2 157.2 

Multifamily residential real estate ......................... 210.7 1.9 29.1 44.1 135.7 51.2 33.2 30.5 10.2 7.7 77.8 

Home equity loans ................................................ 646.9 2.6 35.9 45.9 562.4 63.5 206.5 159.3 77.9 23.4 116.3 

Other 1-4 family residential ................................... 2,154.2 30.8 243.1 228.8 1,651.6 441.1 629.6 334.3 112.4 101.4 535.4 

Commercial and industrial loans ............................. 1,492.5 16.4 127.5 161.7 1,186.9 205.7 373.2 368.8 136.7 104.5 303.7 

Loans to individuals ................................................. 1,069.5 8.5 47.9 81.8 931.2 279.3 202.6 179.5 95.6 39.7 272.7 

Credit card loans .................................................. 396.0 0.1 3.3 31.5 361.1 172.3 22.7 43.5 41.6 7.7 108.3 

Other loans to individuals ..................................... 673.5 8.4 44.7 50.3 570.2 107.0 179.9 136.0 54.0 32.0 164.4 

All other loans and leases (including farm) ............. 642.5 11.6 37.7 41.0 552.1 99.5 169.0 163.7 71.7 21.5 117.2 

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

Memo: Other Real Estate Owned (in millions) 

7,998.6 113.1 949.1 1,034.3 5,902.1 1,409.8 2,099.2 1,570.8 674.2 508.3 1,736.4 

All other real estate owned ...................................... 18,910.1 455.5 4,302.4 3,105.3 11,046.9 1,382.5 5,424.8 3,829.8 2,119.7 1,686.5 4,467.0 

Construction and development ............................. 4,815.2 108.9 2,029.0 1,444.5 1,232.8 365.2 1,673.6 846.9 516.1 666.0 747.5 

Nonfarm nonresidential ........................................ 2,049.6 125.6 850.3 426.6 647.2 192.7 644.1 491.5 315.1 314.5 91.7 

Multifamily residential real estate ......................... 555.4 13.2 195.7 97.3 249.1 56.3 152.7 128.3 67.0 67.4 83.6 

1-4 family residential ............................................. 9,869.2 195.0 1,192.4 1,119.1 7,362.6 731.9 2,897.7 1,656.0 675.2 567.9 3,340.4 

Farmland .............................................................. 72.0 12.5 35.0 9.6 14.9 13.9 8.1 5.8 11.2 31.1 1.9 

GNMA properties .................................................. 1,391.5 0.7 1.1 10.7 1,378.9 15.8 50.6 701.8 536.0 39.9 47.4 

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

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

FDIC Quarterly 11 2008, Volume 2, No. 3 
TABLE VI-A. Derivatives, All FDIC-Insured Commercial Banks and State-Chartered Savings Banks

Blank

Blank

Blank

Blank

Blank

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

(dollar figures in millions; 

notional amounts unless otherwise indicated) 

%Change 

07:2-08:2 

2nd Quarter 

2008 

1st Quarter 

2008 

4th Quarter 

2007 

3rd Quarter 

2007 

2nd Quarter 

2007 

Asset Size Distribution 

Less than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater than 

$10 Billion 

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives ................................. 1,063 1,097 1,045 1,026 1,059 0.4 73 644 268 78 

Total assets of institutions reporting derivatives ........................... $10,101,476 $10,193,210 $9,827,071 $9,459,618 $9,147,957 10.4 $5,533 $278,064 $871,653 $8,946,226 

Total deposits of institutions reporting derivatives ........................ 6,448,501 6,470,257 6,324,968 6,030,658 5,900,485 9.3 4,388 215,597 608,788 5,619,728 

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

Derivative Contracts by Underlying Risk Exposure 

183,302,893 181,599,440 166,116,969 174,574,410 154,810,235 18.4 219 16,818 97,175 183,188,681 

Interest rate .......................................................................... 144,933,417 141,879,078 129,490,821 138,720,253 123,336,016 17.5 207 16,491 89,140 144,827,579 

Foreign exchange* ............................................................... 19,418,964 19,738,204 17,174,167 16,696,571 15,117,713 28.5 0 24 6,475 19,412,465 

Equity ................................................................................. 2,344,339 2,410,959 2,522,430 2,745,807 2,487,655 -5.8 12 159 1,038 2,343,130 

Commodity & other (excluding credit derivatives) ........................ 1,137,363 1,129,778 1,066,704 1,015,444 951,725 19.5 0 2 323 1,137,039 

Credit ................................................................................... 15,468,809 16,441,421 15,862,846 15,396,335 12,917,125 19.8 0 143 198 15,468,469 

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

Derivative Contracts by Transaction Type 

183,302,893 181,599,440 166,116,969 174,574,410 154,810,235 18.4 219 16,818 97,175 183,188,681 

Swaps ................................................................................ 114,178,369 112,564,785 103,102,442 111,396,434 95,327,302 19.8 32 10,528 65,872 114,101,938 

Futures & forwards ................................................................. 23,582,588 22,361,731 18,866,462 17,126,118 16,194,081 45.6 83 1,806 19,116 23,561,583 

Purchased options ................................................................. 14,500,997 14,285,549 13,770,867 14,547,038 14,288,409 1.5 12 2,018 6,226 14,492,741 

Written options ....................................................................... 14,414,796 14,705,216 13,954,387 15,022,184 14,773,502 -2.4 92 2,314 5,492 14,406,897 

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

Fair Value of Derivative Contracts 

166,676,750 163,917,280 149,694,159 158,091,774 140,583,294 18.6 219 16,666 96,706 166,563,159 

Interest rate contracts .............................................................. 75,935 62,580 20,076 30,716 20,006 279.6 1 23 -7 75,918 

Foreign exchange contracts ...................................................... 32,017 9,670 7,980 3,119 5,661 465.6 0 0 -11 32,028 

Equity contracts .................................................................... -3,878 -2,426 9,485 -20,872 -24,473 N/M 0 4 30 -3,911 

Commodity & other (excluding credit derivatives) ........................ 4,976 3,257 1,785 1,664 1,946 155.7 0 0 3 4,972 

Credit derivatives as guarantor ................................................ -398,893 -474,045 -212,447 -104,120 -22,960 N/M 0 0 -15 -398,878 

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

Derivative Contracts by Maturity** 

428,844 501,034 222,426 110,905 23,824 N/M 0 0 0 428,844 

Interest rate contracts ........................................... < 1 year 44,995,165 42,621,756 39,085,183 48,918,838 39,403,807 14.2 80 2,250 26,155 44,966,680

 ............................ 1-5 years 39,521,384 39,752,478 37,222,363 36,311,048 33,846,133 16.8 15 8,695 25,535 39,487,140

 ............................ > 5 years 29,704,342 30,105,716 27,724,625 27,877,687 24,588,178 20.8 17 3,065 29,210 29,672,050 

Foreign exchange contracts ................................... < 1 year 12,345,486 12,524,601 11,591,807 10,094,603 8,948,450 38.0 0 12 5,072 12,340,401

 ............................ 1-5 years 1,929,554 1,924,840 1,604,898 1,831,220 1,667,700 15.7 0 3 17 1,929,535

 ............................ > 5 years 734,305 714,707 618,960 718,390 676,071 8.6 0 0 10 734,295 

Equity contracts ................................................... < 1 year 504,259 509,709 473,413 464,820 442,652 13.9 1 37 127 504,094

 ............................ 1-5 years 207,553 287,805 297,459 330,227 290,633 -28.6 4 42 440 207,067

 ............................ > 5 years 76,297 39,960 70,485 70,134 62,916 21.3 0 0 19 76,278 

Commodity & other contracts .................................. < 1 year 315,202 369,747 284,837 267,197 280,133 12.5 0 0 217 314,984

 ............................ 1-5 years 267,343 277,956 333,631 304,544 261,410 2.3 0 0 47 267,295

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

Risk-Based Capital: Credit Equivalent Amount 

28,367 33,492 28,282 31,483 27,273 4.0 0 0 5 28,362 

Total current exposure to tier 1 capital (%) ................................. 57.6 67.1 45.4 38.0 30.7 0.2 0.4 1.7 66.9 

Total potential future exposure to tier 1 capital (%) ........................ 118.4 122.6 110.1 114.7 113.5 0.1 0.4 0.9 137.7 

Total exposure (credit equivalent amount) to tier 1 capital (%) ......... 176.1 189.8 155.5 152.7 144.2 0.3 0.7 2.6 204.6 

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

HELD FOR TRADING 

134.8 14.8 156.1 125.5 6.0 N/M 0.0 0.1 0.0 134.7 

Number of institutions reporting derivatives ................................. 180 171 166 158 166 8.4 8 59 59 54 

Total assets of institutions reporting derivatives ........................... 8,595,275 8,624,389 8,306,869 7,976,927 7,641,306 12.5 546 24,898 268,832 8,301,000 

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

Derivative Contracts by Underlying Risk Exposure 

5,500,997 5,466,765 5,354,982 5,081,807 4,917,882 11.9 399 19,537 187,367 5,293,695 

Interest rate .......................................................................... 142,264,744 139,169,342 127,128,959 136,071,674 120,820,783 17.7 6 542 32,916 142,231,280 

Foreign exchange ................................................................. 18,166,799 18,413,342 16,483,116 15,489,462 13,683,371 32.8 0 1 5,812 18,160,986 

Equity ................................................................................... 2,333,148 2,402,414 2,515,192 2,729,758 2,481,730 -6.0 0 2 326 2,332,819 

Commodity & other ................................................................. 1,134,781 1,128,387 1,065,818 1,014,757 951,236 19.3 0 0 200 1,134,581 

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

Trading Revenues: Cash & Derivative Instruments 

163,899,472 161,113,484 147,193,085 155,305,652 137,937,120 18.8 6 546 39,254 163,859,666 

Interest rate .......................................................................... 834 2,393 -2,531 1,624 3,056 -72.7 0 0 8 826 

Foreign exchange ................................................................. 2,096 2,084 1,880 1,936 1,266 65.6 0 0 15 2,081 

Equity ................................................................................... 185 -18 217 -98 1,020 -81.9 0 0 0 185 

Commodity & other (including credit derivatives) ........................... -1,529 -3,206 -10,145 -803 937 N/M 0 0 -3 -1,526 

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

Share of Revenue 

1,585 1,252 -10,579 2,659 6,279 -74.8 0 0 20 1,566 

Trading revenues to gross revenues (%) .................................... 1.2 0.9 -7.7 1.8 4.2 0.0 -0.1 0.5 1.2 

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

HELD FOR PURPOSES OTHER THAN TRADING 

21.4 12.1 -278.0 14.9 27.8 0.0 -0.7 4.3 22.6 

Number of institutions reporting derivatives ................................. 972 1,008 965 951 973 -0.1 65 593 242 72 

Total assets of institutions reporting derivatives ........................... 9,804,983 9,909,002 9,660,622 9,299,269 8,967,564 9.3 4,988 256,877 784,161 8,758,958 

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

Derivative Contracts by Underlying Risk Exposure 

6,254,800 6,284,848 6,210,095 5,922,180 5,776,895 8.3 3,990 198,663 545,784 5,506,363 

Interest rate .......................................................................... 2,668,673 2,709,736 2,361,862 2,648,579 2,515,233 6.1 201 15,949 56,224 2,596,299 

Foreign exchange ................................................................. 94,832 84,124 131,087 120,808 124,526 -23.8 0 14 393 94,426 

Equity ................................................................................... 11,191 8,545 7,238 16,048 5,926 88.8 12 156 713 10,310 

Commodity & other ................................................................. 2,583 1,391 886 687 489 428.2 0 2 123 2,458 

Total notional amount .............................................................. 2,777,279 2,803,796 2,501,073 2,786,122 2,646,174 5.0 213 16,121 57,452 2,703,493 

All line items are reported on a quarterly basis. 

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

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

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

FDIC Quarterly 12 2008, Volume 2, No. 3 
TABLE VII-A. Servicing, Securitization, and Asset Sales Activities (All FDIC-Insured Commercial Banks and State-Chartered Savings Banks) 

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Quarterly Banking Profile 

TABLE VII-A. Servicing, Securitization, and Asset Sales Activities
 

(All FDIC-Insured Commercial Banks and State-Chartered Savings Banks)
 

(dollar figures in millions) 

2nd Quarter 

2008 

1st Quarter 

2008 

4th Quarter 

2007 

3rd Quarter 

2007 

2nd Quarter 

2007 

%Change 

07:2-08:2 

Asset Size Distribution 

Less than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater than 

$10 Billion 

Assets Securitized and Sold with Servicing Retained or with Recourse or 

Other Seller-Provided Credit Enhancements 

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

Outstanding Principal Balance by Asset Type 

139 134 127 125 128 8.6 16 60 24 39 

1-4 family residential loans ........................................................................................ $1,087,364 $1,068,680 $1,066,324 $1,033,487 $1,040,341 4.5 $35 $518 $8,785 $1,078,027 

Home equity loans .................................................................................................... 7,822 8,341 9,353 9,894 10,640 -26.5 0 0 213 7,608 

Credit card receivables .............................................................................................. 409,883 402,171 390,035 379,662 372,481 10.0 0 2,993 11,634 395,257 

Auto loans ................................................................................................................. 6,224 7,495 8,285 9,755 11,800 -47.3 0 0 252 5,972 

Other consumer loans .............................................................................................. 28,870 27,787 28,542 29,386 27,396 5.4 0 0 0 28,869 

Commercial and industrial loans ................................................................................. 12,497 12,555 14,469 16,183 13,489 -7.4 0 58 5,231 7,207 

All other loans, leases, and other assets* ...................................................................... 198,099 197,091 193,875 184,941 162,434 22.0 15 313 420 197,351 

Maximum Credit Exposure by Asset Type 

Total securitized and sold ............................................................................................. 1,750,758 1,724,121 1,710,883 1,663,308 1,638,581 6.8 49 3,882 26,535 1,720,292 

1-4 family residential loans ........................................................................................ 7,121 7,120 7,020 6,874 6,535 9.0 6 82 15 7,017 

Home equity loans .................................................................................................... 1,527 1,752 2,000 2,336 2,402 -36.4 0 0 8 1,519 

Credit card receivables .............................................................................................. 24,855 21,412 19,629 19,120 18,711 32.8 0 267 694 23,894 

Auto loans ............................................................................................................... 352 405 380 426 555 -36.6 0 0 14 338 

Other consumer loans .............................................................................................. 1,417 1,406 1,379 2,114 1,768 -19.9 0 0 0 1,417 

Commercial and industrial loans ................................................................................. 311 276 603 720 610 -49.0 0 24 112 174 

All other loans, leases, and other assets ....................................................................... 2,161 3,228 3,733 4,578 1,053 105.2 10 253 32 1,866 

Total credit exposure .................................................................................................... 37,744 35,601 34,743 36,169 31,633 19.3 17 627 875 36,225 

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

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

1,902 2,944 4,686 5,095 5,667 -66.4 0 0 0 1,902 

1-4 family residential loans ........................................................................................ 2.8 2.5 2.8 2.9 2.7 1.6 0.0 0.2 2.8 

Home equity loans .................................................................................................... 0.6 0.7 0.8 0.7 0.6 0.0 0.0 2.0 0.6 

Credit card receivables .............................................................................................. 2.1 2.2 2.2 2.1 1.9 0.0 1.2 1.5 2.1 

Auto loans .............................................................................................................. 2.2 1.9 2.4 1.9 1.6 0.0 0.0 0.8 2.3 

Other consumer loans .............................................................................................. 2.7 2.5 3.1 2.8 2.8 0.0 0.0 0.0 2.7 

Commercial and industrial loans ................................................................................. 1.3 1.2 1.0 0.9 0.5 0.0 0.0 2.8 0.1 

All other loans, leases, and other assets ...................................................................... 0.3 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.3 

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

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

2.3 2.2 2.4 2.4 2.2 1.1 0.9 1.3 2.3 

1-4 family residential loans ........................................................................................ 2.0 2.0 1.7 1.3 1.3 1.6 0.0 0.1 2.0 

Home equity loans .................................................................................................... 0.7 0.7 0.5 0.4 0.3 0.0 0.0 1.1 0.7 

Credit card receivables .............................................................................................. 2.1 2.1 1.9 1.7 1.6 0.0 1.0 1.3 2.1 

Auto loans .............................................................................................................. 0.3 0.3 0.4 0.2 0.2 0.0 0.0 0.1 0.3 

Other consumer loans .............................................................................................. 2.4 2.3 2.4 2.1 2.1 0.0 0.0 0.0 2.4 

Commercial and industrial loans ................................................................................. 1.3 1.1 0.9 0.7 0.6 0.0 0.0 2.8 0.2 

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

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

Total loans, leases, and other assets .............................................................................. 1.8 1.8 1.5 1.3 1.3 1.1 0.8 1.2 1.8 

1-4 family residential loans ........................................................................................ 0.1 0.0 0.1 0.0 0.0 0.0 0.0 2.6 0.1 

Home equity loans .................................................................................................... 0.2 0.1 0.2 0.1 0.1 0.0 0.0 0.7 0.2 

Credit card receivables .............................................................................................. 2.8 1.4 4.4 3.3 2.2 0.0 2.1 2.0 2.9 

Auto loans ............................................................................................................... 0.9 0.4 1.3 0.8 0.5 0.0 0.0 0.2 1.0 

Other consumer loans .............................................................................................. 0.4 0.2 1.3 1.1 0.7 0.0 0.0 0.0 0.4 

Commercial and industrial loans ................................................................................. 1.9 0.8 2.0 1.2 0.7 0.0 0.0 4.5 0.0 

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

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

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

0.7 0.4 1.1 0.8 0.5 0.0 1.6 2.6 0.7 

Home equity loans .................................................................................................... 435 282 347 494 651 -33.2 0 0 0 435 

Credit card receivables .............................................................................................. 82,604 73,418 86,748 77,451 73,405 12.5 0 252 4,211 78,140 

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

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

3,506 3,263 7,671 6,018 2,843 23.3 0 0 665 2,840 

Home equity loans .................................................................................................... 7 9 9 10 10 -30.0 0 0 0 7 

Credit card receivables .............................................................................................. 403 377 436 374 327 23.2 0 10 393 0 

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

Assets Sold with Recourse and Not Securitized 

1 1 2 6 9 -88.9 0 0 0 1 

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

Outstanding Principal Balance by Asset Type 

771 759 759 747 737 4.6 148 472 106 45 

1-4 family residential loans ........................................................................................ 65,945 60,386 57,612 57,400 55,168 19.5 1,039 8,133 3,415 53,357 

Home equity, credit card receivables, auto, and other consumer loans ................................. 1,718 1,886 637 775 603 184.9 0 28 3 1,686 

Commercial and industrial loans ................................................................................. 4,794 4,579 4,728 5,053 7,460 -35.7 0 173 66 4,555 

All other loans, leases, and other assets ....................................................................... 28,358 26,105 24,082 21,509 8,035 252.9 0 87 531 27,740 

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

Maximum Credit Exposure by Asset Type 

100,816 92,956 87,059 84,737 71,266 41.5 1,040 8,421 4,015 87,339 

1-4 family residential loans ........................................................................................ 14,696 14,070 14,780 15,885 14,551 1.0 137 1,466 2,036 11,057 

Home equity, credit card receivables, auto, and other consumer loans ................................. 171 165 604 742 575 -70.3 0 5 2 164 

Commercial and industrial loans ................................................................................. 3,614 3,335 3,393 3,422 4,205 -14.1 0 156 66 3,391 

All other loans, leases, and other assets ........................................................................ 7,508 7,180 6,968 6,299 2,226 237.3 0 14 111 7,383 

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

Support for Securitization Facilities Sponsored by Other Institutions 

25,989 24,750 25,745 26,348 21,557 20.6 137 1,642 2,215 21,995 

Number of institutions reporting securitization facilities sponsored by others ........................... 47 48 48 50 50 -6.0 23 15 4 5 

Total credit exposure .................................................................................................... 12,659 6,824 2,841 1,478 1,375 820.7 8 94 103 12,454 

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

Other 

5,492 6,778 10,314 8,242 14,093 -61.0 0 0 0 5,492 

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

Asset-backed commercial paper conduits 

. 3,900,984 3,801,655 3,798,682 3,648,511 3,570,238 9.3 3,608 66,320 104,149 3,726,906 

Credit exposure to conduits sponsored by institutions and others ....................................... 21,083 22,332 22,226 22,592 22,211 -5.1 2 0 257 20,824 

Unused liquidity commitments to conduits sponsored by institutions and others .................. . 320,507 345,968 372,709 365,850 364,656 -12.1 0 0 0 320,507 

Net servicing income (for the quarter) .............................................................................. 7,246 3,532 2,718 3,635 5,330 35.9 52 139 224 6,830 

Net securitization income (for the quarter) ......................................................................... 3,837 5,136 5,006 5,812 5,355 -28.3 0 47 247 3,543 

Total credit exposure to Tier 1 capital (%)*** ..................................................................... 7.5 6.6 6.4 6.5 5.6 0.7 1.8 2.4 9.6 

* 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 whenthese assets are greater than $10 million.
 

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

FDIC Quarterly 13 2008, Volume 2, No. 3 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INSURANCE FUND INDICATORS 

n DIF Reserve Ratio Declines 18 Basis Points to 1.01 Percent 

n Insured Deposits Grow by 0.5 Percent in the Second Quarter 

n Two Insured Institutions Fail During the Second Quarter 

During the second quarter of 2008, total assets of the 

nation’s 8,451 FDIC-insured commercial banks and 

savings institutions decreased by $68.6 billion (0.5 

percent). During this period total deposits increased by 

$6.9 billion, foreign deposits increased by $46.8 billion, 

while deposits in domestic offices shrank by $39.8 

billion. This was the largest one-quarter decrease in 

domestic deposits since the first quarter of 1999. 

Domestic time deposits greater than $100 thousand 

decreased by 5.1 percent ($63.9 billion) and saving 

deposits and interest bearing checking accounts 

decreased by 0.6 percent ($19.6 billion). Domestic 

time deposits less than $100 thousand increased by 

1.0 percent ($13.3 billion) and domestic noninterest 

bearing deposits increased by 2.5 percent ($30.4 

billion). For the 12 months ending June 30, total 

domestic deposits increased by 5.0 percent, with 

interest-bearing deposits rising by 5.2 percent and 

noninterest-bearing deposits rising by 4.5 percent. 

This was the strongest 12-month growth in noninterestbearing deposits since the fourth quarter of 2005. 

Over the past 12 months, the share of assets funded by 

domestic deposits declined from 55 percent to 53 

percent. By contrast, over the same 12 months, foreign 

deposits as a percent of total assets rose from 11.0 

percent to 11.6 percent, and Federal Home Loan Bank 

(FHLB) advances’ share of asset funding increased from 

5.0 percent to 6.3 percent. Foreign office deposits 

increased by 14.9 percent ($199.9 billion) and FHLB 

advances increased by 38.1 percent ($232.1 billion) 

over the 12 months ending June 30. 

Although domestic deposits declined ($39.8 billion), 

estimated insured deposits (including U.S. branches 

of foreign banks) grew by 0.5 percent ($23.9 billion) 

during the second quarter of 2008. The decrease in 

domestic deposits was thus attributable to a drop in 

uninsured domestic deposits. Over the 12 months 

ending in June, insured deposits increased by 5.4 

percent. For institutions reporting as of June 30, 2008, 

and March 31, 2008, insured deposits increased during 

the second quarter at 4,460 institutions (52.9 percent), 

decreased at 3,929 institutions (46.6 percent), and 

remained unchanged at 38 institutions. 

The Deposit Insurance Fund (DIF) decreased by 14.4 

percent ($7.6 billion) during the second quarter to 

$45,217 million (unaudited). Accrued assessment 

income added $640 million to the DIF during the 

second quarter. The fund received $1.6 billion from 

unrealized gains on available for sale securities and 

took in $395 million from interest on securities and 

other revenue, net of operating expenses. The reduction in the DIF came primarily from $10.2 billion in 

additional provisions for insurance losses. These 

included provisions for failures that have occurred so 

far in the third quarter. 

The DIF’s reserve ratio equaled 1.01 percent on June 

30, 2008, 18 basis points lower than the previous quarter and 20 basis points lower than June 30 of last year. 

This was the lowest reserve ratio since March 31, 1995, 

when the reserve ratio for a combined BIF and SAIF 

stood at 0.98 percent. 

Two FDIC-insured institutions with combined assets of 

$1.9 billion failed during the second quarter of 2008. At 

the time of failure, losses to the DIF were estimated at 

$216 million. For 2008 through June 30, four insured 

institutions with combined assets of $2.0 billion failed, 

at an estimated current cost to the DIF of $225 million. 

Author:	 Kevin Brown, Sr. Financial Analyst 

Division of Insurance and Research 

(202) 898-6817 

FDIC Quarterly	 14 2008, Volume 2, No. 3 
Quarterly Banking Profile 

TABLE I-B. Insurance Fund Balances and Selected Indicators Table I-B. Insurance Fund Balances and Selected Indicators 

(dollar figures in millions) Deposit Insurance Fund 

2nd Quarter 

2008 

1st Quarter 

2008 

4th Quarter 

2007 

3rd Quarter 

2007 

2nd Quarter 

2007 

1st Quarter 

2007 

4th Quarter 

2006 

3rd Quarter 

2006 

2nd Quarter 

2006 

1st Quarter 

2006 

4th Quarter 

2005 

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

Changes in Fund Balance: 

$52,843 $52,413 $51,754 $51,227 $50,745 $50,165 $49,992 $49,564 $49,193 $48,597 $48,373 

Assessments earned....................................... 640 448 239 170 140 94 10 10 7 5 13 

Interest earned on investment securities............ 651 618 585 640 748 567 476 622 665 478 675 

Operating expenses....................................... 256 238 262 243 248 239 248 237 242 224 252 

Provision for insurance losses........................... 10,221 525 39 132 -3 -73 49 -50 -6 -45 -19 

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

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

1 0 -2 24 1 4 5 1 12 349 4 

securities................................................... 1,559 127 138 68 -162 81 -21 -18 -77 -57 -235 

Total fund balance change.............................. -7,626 430 659 527 482 580 173 428 371 596 224 

Ending Fund Balance*................................. 45,217 52,843 52,413 51,754 51,227 50,745 50,165 49,992 49,564 49,193 48,597

 Percent change from four quarters earlier......... -11.73 4.13 4.48 3.52 3.36 3.15 3.23 3.35 3.21 3.31 2.29 

Reserve Ratio (%)....................................... 1.01 1.19 1.22 1.22 1.21 1.20 1.21 1.22 1.23 1.23 1.25 

Estimated Insured Deposits ........................ 4,462,426 4,438,501 4,291,750 4,242,607 4,235,043 4,245,267 4,153,786 4,100,013 4,040,353 4,001,906 3,890,941

 Percent change from four quarters earlier......... 5.37 4.55 3.32 3.48 4.82 6.08 6.76 7.02 7.52 8.50 7.42 

Assessment Base 7,074,094 7,017,114 7,053,232 6,880,932 6,821,489 6,801,523 6,594,750 6,439,326 6,386,864 6,272,505 6,177,429

 Percent change from four quarters earlier......... 3.70 3.17 6.95 6.86 6.80 8.43 6.76 6.63 8.64 8.15 8.88 

Number of institutions reporting..................... 8,462 8,505 8,545 8,570 8,625 8,661 8,692 8,755 8,790 8,803 8,846 

DIF Reserve Ratios* 

Percent of Insured Deposits 

1.31 1.29 1.28 1.26 1.25 1.23 1.22 1.21 1.20 1.21 1.22 1.19 

1.01 

1.23 1.22 

12/04 6/05 12/05 6/06 12/06 6/07 12/07 6/08 

Deposit Insurance Fund Balance 

and Insured Deposits* 

($ Millions) DIFDIF Insured 

Balance Deposits 

12/04 47,507 3,622,059

3/05 47,617 3,688,562

6/05 48,023 3,757,728

9/05 48,373 3,830,950

12/05 48,597 3,890,941

3/06 49,193 4,001,906

6/06 49,564 4,040,353

9/06 49,992 4,100,013

12/06 50,165 4,153,786

3/07 50,745 4,245,267

6/07 51,227 4,235,043

9/07 51,754 4,242,607

12/07 52,413 4,291,750

3/08 52,843 4,438,501

6/08 45,217 4,462,426

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

(dollar figures in millions) 2008*** 2007*** 2007 2006 2005 2004 2003 

Problem Institutions

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

Total assets................................................ 

Failed/Assisted Institutions

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

Total assets................................................ 

117 

$78,343 

4 

$2,020 

61 

$23,782 

1 

$16 

76 

$22,189 

3 

$2,615 

50 

$8,265 

0 

$0 

52 

$6,607 

0

$0 

80 

$28,250 

4

 $170 

116

$29,917 

3 

$947 

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

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

*** Through June 30.
 

FDIC Quarterly 15 2008, Volume 2, No. 3 
s

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

(dollar figures in millions) 

June 30, 2008 

Number of 

Institutions 

Total 

Assets 

Domestic 

Deposits* 

Est. Insured 

Deposits 

Commercial Banks and Savings Institutions 

FDIC-Insured Commercial Banks .......................................... 7,203 $ 11,426,172 $ 5,879,422 $ 3,549,976

FDIC-Supervised ............................................................ 4,744 1,951,115 1,431,841 984,855 

OCC-Supervised ............................................................ 1,585 7,924,173 3,591,232 2,054,489 

Federal Reserve-Supervised ............................................. 874 1,550,883 856,349 510,632 

FDIC-Insured Savings Institutions .......................................... 1,248 1,874,628 1,149,720 907,677

 OTS-Supervised Savings Institutions .................................... 829 1,567,216 940,411 743,811

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

Total Commercial Banks and 

419 307,412 209,310 163,865 

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

Other FDIC-Insured Institutions 

8,451 13,300,800 7,029,143 4,457,653 

U.S. Branches of Foreign Banks ............................................. 11 16,931 7,105 4,773 

Total FDIC-Insured Institutions .............................................. 8,462 13,317,731 7,036,248 4,462,426 

* Excludes $1.54 trillion in foreign office deposits, which are uninsured. 

Table IV-B. Distribution of Institutions and Assessment Base Among Risk Categorie

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

Quarter Ending March 31, 2008 

(dollar figures in billions) Percent 

Annual Percent of Total 

Rate in Number of of Total Assessment Assessment 

Risk Category Basis Points Institutions Institutions Base Base 

I - Minimum ............................................. 5 2,177 25.6 3,358 47.9 

I - Middle ................................................ 5.01- 6.00 2,818 33.1 2,000 28.5 

I - Middle ................................................ 6.01- 6.99 1,561 18.4 582 8.3 

I - Maximum ............................................. 7 1,358 16.0 458 6.5 

II ............................................................ 10 491 5.8 593 8.5 

III ......................................................... 28 90 1.1 16 0.2 

IV ......................................................... 43 10 0.1 9 0.1 

Note: Institutions are categorized based on supervisory ratings, debt ratings and financial data as of March 31, 2008. 


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

FDIC Quarterly 16 2008, Volume 2, No. 3 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Banking Profile 

Notes To Users 

This publication contains financial data and other information for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding 

the comparability of source data and reporting differences 

over time. 

Tables I-A through VIII-A. 

The information presented in Tables I-A through V-A of the 

FDIC Quarterly Banking Profile is aggregated for all 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) Call Reports and the OTS 

Thrift Financial Reports submitted by all FDIC-insured depository institutions. This information is stored on and retrieved 

from the FDIC’s Research Information System (RIS) data 

base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting and 

accounting requirements of the FFIEC Call Reports. Parent 

institutions are required to file consolidated reports, while 

their subsidiary financial institutions are still required to file 

separate reports. Data from subsidiary institution reports are 

included in the Quarterly Banking Profile tables, which can 

lead to double-counting. No adjustments are made for any 

double-counting of subsidiary data. 

All asset and liability figures used in calculating performance 

ratios represent average amounts for the period (beginning-ofperiod amount plus end-of-period amount plus any interim 

periods, divided by the total number of periods). For “poolingof-interest” mergers, the assets of the acquired institution(s) 

are included in average assets since the year-to-date income 

includes the results of all merged institutions. No adjustments 

are made for “purchase accounting” mergers. Growth rates 

represent the percentage change over a 12-month period in 

totals for institutions in the base period to totals for institutions in the current period. 

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

institution’s home state. In addition, institutions may relocate 

across state lines or change their charters, resulting in an 

inter-regional or inter-industry migration, e.g., institutions 

can move their home offices between regions, and savings 

institutions can convert to commercial banks or commercial 

banks may convert to savings institutions. 

ACCOUNTING CHANGES 

FASB Statement No. 157 Fair Value Measurements issued in 

September 2006 and FASB Statement No. 159 The Fair Value 

Option for Financial Assets and Financial Liabilities issued in 

February 2007—both are effective in 2008 with early adoption permitted in 2007. FAS 157 clarifies fair value and 

establishes a framework for developing fair value estimates 

for the fair value measurements that are already required or 

permitted under other standards. Fair value continues to be 

used for derivatives, trading securities, and available-for-sale 

securities. Changes in fair value go through earnings for the 

derivatives and trading securities. Changes in the fair value 

of available-for-sale securities are reported in other comprehensive income. Available-for-sale securities and held-tomaturity debt securities are written down to fair value 

through earnings if impairment is other than temporary and 

mortgage loans held for sale are reported at the lower of cost 

or fair value. Loans held for investment are also subject to 

impairment but are written down based on the present value 

of discounted cash flows. FAS 159 allows banks to elect a 

fair value option when assets are recognized on the balance 

sheet and to report certain financial assets and liabilities at 

fair value with subsequent changes in fair value included in 

earnings. Existing eligible items can be fair-valued as early 

as January 2007 under FAS 159, if a bank adopts FAS 157. 

FASB Statement 158 Employers’ Accounting for Defined Benefit 

Pension and Other Postretirement Plans—issued in September 

2006 requires a bank to recognize in 2007 the funded status 

of its postretirement plans on its balance sheet. An overfunded plan is recognized as an asset and an underfunded plan is 

recognized as a liability. An adjustment is made to equity as 

accumulated other comprehensive income (AOCI) upon 

application of FAS 158, and AOCI is adjusted in subsequent 

periods as net periodic benefit costs are recognized in earnings. 

FASB Statement No. 156 Accounting for Servicing of Financial 

Assets—issued in March 2006 and effective in 2007, requires 

all separately recognized servicing assets and liabilities to be 

initially measured at fair value and allows a bank the option 

to subsequently adjust that value by periodic revaluation 

and recognition of earnings or by periodic amortization to 

earnings. 

FASB Statement No. 155 Accounting for Certain Hybrid Financial 

Instruments—issued in February 2006, requires bifurcation of 

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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 principalonly strips are not subject to FAS 133. 

Purchased Impaired Loans and Debt Securities—Statement of 

Position 03-3, Accounting for Certain Loans or Debt Securities 

Acquired in a Transfer. The SOP applies to loans and debt 

securities acquired in fiscal years beginning after December 

15, 2004. In general, this Statement of Position applies to 

“purchased impaired loans and debt securities” (i.e., loans 

and debt securities that a bank has purchased, including 

those acquired in a purchase business combination, when it is 

probable, at the purchase date, that the bank will be unable 

to collect all contractually required payments receivable). 

Banks must follow Statement of Position 03-3 for Call 

Report purposes. The SOP does not apply to the loans that 

a bank has originated, prohibits “carrying over” or creation 

of valuation allowances in the initial accounting, and any 

subsequent valuation allowances reflect only those losses 

incurred by the investor after acquisition. 

GNMA Buy-back Option—If an issuer of GNMA securities 

has the option to buy back the loans that collateralize the 

GNMA securities, when certain delinquency criteria are 

met, FASB Statement No. 140 requires that loans with this 

buy-back option must be brought back on the issuer’s books 

as assets. The rebooking of GNMA loans is required regardless of whether the issuer intends to exercise the 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. 

FASB Interpretation No. 46—The FASB issued Interpretation 

No. 46, Consolidation of Variable Interest Entities, in January 

2003 and revised it in December 2003. Generally, banks with 

variable interests in variable interest entities created after 

December 31, 2003, must consolidate them. The timing of 

consolidation varies with certain situations with application 

as late as 2005. The assets and liabilities of a consolidated 

variable interest entity are reported on a line-by-line basis 

according to the asset and liability categories shown on the 

bank’s balance sheet, as well as related income items. Most 

small banks are unlikely to have any “variable interests” in 

variable interest entities. 

FASB Interpretation No. 48 on Uncertain Tax Positions 

FASB Interpretation No. 48, Accounting for 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.” 

As originally issued, FIN 48 was 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 January 23, 

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, 2007. 

FASB Statement No. 123 (Revised 2004) and Share-Based 

Payments—requires all entities to recognize compensation 

expense in an amount equal to the fair value of share-based 

payments (e.g., stock options and restricted stock, granted 

to employees). As of January 2006 all banks must adopt FAS 

123(R). The compensation cost is typically recognized over 

the vesting period with a corresponding credit to equity. 

The recording of the compensation cost also gives rise to a 

deferred tax asset. 

FASB Statement No. 133 Accounting for Derivative Instruments 

and Hedging Activities—All banks must recognize derivatives 

as either assets or liabilities on the balance sheet, measured 

at fair value. A derivative may be specifically designated as 

a “fair value hedge,” a “cash flow hedge,” or a hedge of a 

foreign currency exposure. The accounting for changes in 

the value of a derivative (gains and losses) depends on the 

intended use of the derivative, its resulting designation, and 

the effectiveness of the hedge. Derivatives held for purposes 

other than trading are reported as “other assets” (positive fair 

values) or “other liabilities” (negative fair values). For a fair 

value hedge, the gain or loss is recognized in earnings and 

“effectively” offsets loss or gain on the hedged item attributable to the risk being hedged. Any ineffectiveness of the 

hedge could result in a net gain or loss on the income statement. Accumulated net gains (losses) on cash flow hedges 

are recorded on the balance sheet as “accumulated other 

comprehensive income” and the periodic change in the 

accumulated net gains (losses) for cash flow hedges is reflected directly in equity as the value of the derivative changes. 

FASB Statement No. 149, Amendment of Statement 133 

on Derivative Instruments and Hedging Activities provides 

guidance on the circumstances in which a loan commitment 

must be accounted for as a derivative. Under Statement No. 

149, loan commitments that relate to the origination of 

mortgage loans that will be held for sale, commonly referred 

to as interest rate lock commitments, must be accounted for 

as derivatives on the balance sheet by the issuer of the 

commitment. 

DEFINITIONS (in alphabetical order) 

All other assets—total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

estate, investment in unconsolidated subsidiaries, customers’ 

liability on acceptances outstanding, assets held in trading 

accounts, federal funds sold, securities purchased with agreements to resell, fair market value of derivatives, and other 

assets. 

All other liabilities—bank’s liability on acceptances, limited-life 

preferred stock, allowance for estimated off-balance-sheet 

credit losses, fair market value of derivatives, and other 

liabilities. 

Assessment base—assessable deposits consist of DIF deposits 

(deposits insured by the FDIC Deposit Insurance Fund) in 

banks’ domestic offices with certain adjustments. 

Assets securitized and sold—total outstanding principal balance 

of assets securitized and sold with servicing retained or other 

seller-provided credit enhancements. 

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Quarterly Banking Profile 

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 

seller is obligated to purchase or sell the variable or index at 

the discretion of the buyer of the contract. 

Swaps—obligations between two parties to exchange a 

series of cash flows at periodic intervals (settlement dates), 

for a specified period. The cash flows of a swap are either 

fixed, or determined for each settlement date by multiplying 

the quantity (notional principal) of the underlying variable 

or index by specified reference rates or prices. Except for 

currency swaps, the notional principal is used to calculate 

each payment but is not exchanged. 

Derivatives underlying risk exposure—the potential exposure 

characterized by the level of banks’ concentration in particular underlying instruments, in general. Exposure can result 

from market risk, credit risk, and operational risk, as well as, 

interest rate risk.
 

Domestic deposits to total assets—total domestic office deposits 


as a percent of total assets on a consolidated basis.
 

Earning assets—all loans and other investments that earn 

interest or dividend income. 

Efficiency ratio—Noninterest expense less amortization of 

intangible assets as a percent of net interest income plus 

noninterest income. This ratio measures the proportion 

of net operating revenues that are absorbed by overhead 

expenses, so that a lower value indicates greater efficiency. 

Estimated insured deposits—in general, insured deposits are 

total domestic deposits minus estimated uninsured deposits. 

Prior to March 31, 2008, insured deposits are total domestic 

deposits minus estimated uninsured deposits. Prior to 2006, 

the uninsured estimate is based on the excess amounts in 

accounts of over $100,000. Beginning June 30, 2006, the 

uninsured estimate also considers excess amounts in IRA 

accounts over $250,000. Beginning March 31, 2008, for 

institutions that file Call reports, insured deposits are total 

assessable deposits minus estimated uninsured deposits. 

Failed/assisted institutions—an institution fails when regulators take control of the institution, placing the assets and 

liabilities into a bridge bank, conservatorship, receivership, 

or another healthy institution. This action may require the 

FDIC to provide funds to cover losses. An institution is 

defined as “assisted” when the institution remains open 

and receives some insurance funds in order to continue 

operating. 

FHLB advances—all borrowings by FDIC insured institutions 

from the Federal Home Loan Bank System (FHLB), as reported by Call Report filers and by TFR filers. 

Goodwill and other intangibles—intangible assets include servicing rights, purchased credit card relationships, and other 

identifiable intangible assets. Goodwill is the excess of the 

purchase price over the fair market value of the net assets 

acquired, less subsequent impairment adjustments. Other 

intangible assets are recorded at fair value, less subsequent 

quarterly amortization and impairment adjustments. 

Loans secured by real estate—includes home equity loans, 

junior liens secured by 1-4 family residential properties, and 

all other loans secured by real estate. 

Loans to individuals—includes outstanding credit card balances 

and other secured and unsecured consumer loans.
 

Long-term assets (5+ years)—loans and debt securities with 


remaining maturities or repricing intervals of over five years.
 

Maximum credit exposure—the maximum contractual credit 


exposure remaining under recourse arrangements and other 


seller-provided credit enhancements provided by the reporting bank to securitizations.
 

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 


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depositors and other creditors, expressed as a percentage of 

average earning assets. No adjustments are made for interest 

income that is tax exempt. 

Net loans to total assets—loans and lease financing receivables, net of unearned income, allowance and reserves, as a 

percent of total assets on a consolidated basis. 

Net operating income—income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and extraordinary items. Income taxes subtracted from 

operating income have been adjusted to exclude the portion 

applicable to securities gains (or losses). 

Noncurrent assets—the sum of loans, leases, debt securities, 

and other assets that are 90 days or more past due, or in nonaccrual status. 

Noncurrent loans & leases—the sum of loans and leases 90 days 

or more past due, and loans and leases in nonaccrual status. 

Number of institutions reporting—the number of institutions 

that actually filed a financial report. 

Other borrowed funds—federal funds purchased, securities sold 

with agreements to repurchase, demand notes issued to the 

U.S. Treasury, FHLB advances, other borrowed money, mortgage indebtedness, obligations under capitalized leases and 

trading liabilities, less revaluation losses on assets held in 

trading accounts. 

Other real estate owned—primarily foreclosed property. Direct 

and indirect investments in real estate ventures are excluded. 

The amount is reflected net of valuation allowances. For 

institutions that file a Thrift Financial Report (TFR), the 

valuation allowance subtracted also includes allowances for 

other repossessed assets. Also, for TFR filers the components 

of other real estate owned are reported gross of valuation 

allowances. 

Percent of institutions with earnings gains—the percent of institutions that increased their net income (or decreased their 

losses) compared to the same period a year earlier. 

“Problem” institutions—federal regulators assign a composite 

rating to each financial institution, based upon an evaluation 

of financial and operational criteria. The rating is based on a 

scale of 1 to 5 in ascending order of supervisory concern. 

“Problem” institutions are those institutions with financial, 

operational, or managerial weaknesses that threaten their 

continued financial viability. Depending upon the degree of 

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

“5.” The number and assets of “problem” institutions are 

based on FDIC composite ratings. Prior to March 31, 2008, 

for institutions whose primary federal regulator was the OTS, 

the OTS composite rating was used. 

Recourse—an arrangement in which a bank retains, in form 

or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally 

accepted accounting principles) that exceeds a pro rata share 

of the bank’s claim on the asset. If a bank has no claim on 

an asset it has sold, then the retention of any credit risk is 

recourse. 

Reserves for losses—the allowance for loan and lease losses on 

a consolidated basis. 


Restructured loans and leases—loan and lease financing receivables with terms restructured from the original contract. 


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

Retained earnings—net income less cash dividends on common 

and preferred stock for the reporting period.
 

Return on assets—net income (including gains or losses on 


securities and extraordinary items) as a percentage of average 


total assets. The basic yardstick of bank profitability.
 

Return on equity—net income (including gains or losses on 


securities and extraordinary items) as a percentage of average 


total equity capital.
 

Risk-based capital groups—definition: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) Capital * Capital * Leverage Equity 

Well-Capitalized ≥10 and ≥6 and ≥5 – 

Adequately 

capitalized ≥8 and ≥4 and ≥4 – 

Undercapitalized ≥6 and ≥3 and ≥3 – 

Significantly 

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

Critically 

undercapitalized – – – ≤2 

*As a percentage of risk-weighted assets. 

Risk Categories and Assessment Rate Schedule—The current 

risk categories and assessment rate schedule became effective 

January 1, 2007. Capital ratios and supervisory ratings 

distinguish one risk category from another. The following 

table shows the relationship of risk categories (I, II, III, IV) 

to capital and supervisory groups as well as the assessment 

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

Group A generally includes institutions with CAMELS 

composite ratings of 1 or 2; Supervisory Group B generally 

includes institutions with a CAMELS composite rating of 3; 

and Supervisory Group C generally includes institutions 

with CAMELS composite ratings of 4 or 5. For purposes 

of risk-based assessment capital groups, undercapitalized 

includes institutions that are significantly or critically 

undercapitalized. 

Supervisory Group 

Capital Group A B C 

I 

1. Well Capitalized 5–7 bps III II 

28 bps 10 bps 2. Adequately Capitalized 

III IV 3. Undercapitalized 28 bps 43 bps 

Assessment rates are 3 basis points above the base rate schedule. The FDIC may adjust rates up or down by 3 basis points 

from the base rate schedule without notice and comment, 

provided that any single adjustment from one quarter to the 

next cannot move rates more than 3 basis points. 

For most institutions in Risk Category I, the assessment rate 

assigned will be based on a combination of financial ratios 

and CAMELS component ratings. 

For large institutions in Risk Category I (generally those 

with at least $10 billion in assets) that have long-term debt 

issuer ratings, assessment rates will be determined by weighting CAMELS component ratings 50 percent and long-term 

FDIC Quarterly 20 2008, Volume 2, No. 3 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Banking Profile 

debt issuer ratings 50 percent. For all large Risk Category I 

institutions, additional risk factors will be considered to 

determine whether assessment rates should be adjusted. 

This additional information includes market data, financial 

performance measures, considerations of the ability of an 

institution to withstand financial stress, and loss severity 

indicators. Any adjustment will be limited to no more than 

1⁄2 basis point. 

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

rate for a quarterly assessment period near the end of the 

quarter following the assessment period. Payment will generally be due on the 30th day of the last month of the quarter 

following the assessment period. Supervisory rating changes 

will be effective for assessment purposes as of the examination transmittal date. For institutions with long-term debt 

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

Risk-weighted assets—assets adjusted for risk-based capital 

definitions which include on-balance-sheet as well as offbalance-sheet items multiplied by risk-weights that range 

from zero to 100 percent. A conversion factor is used to 

assign a balance sheet equivalent amount for selected offbalance-sheet accounts. 

Securities—excludes securities held in trading accounts. Banks’ 

securities portfolios consist of securities designated as “heldto-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. 

Trust assets—market value, or other reasonably available 

value of fiduciary and related assets, to include marketable 

securities, and other financial and physical assets. Common 

physical assets held in fiduciary accounts include real estate, 

equipment, collectibles, and household goods. Such fiduciary 

assets are not included in the assets of the financial 

institution. 

Unearned income & contra accounts—unearned income for Call 

Report filers only. 

Unused loan commitments—includes credit card lines, home 

equity lines, commitments to make loans for construction, 

loans secured by commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for 

sale, which are accounted for as derivatives on the balance 

sheet.) 

Volatile liabilities—the sum of large-denomination time deposits, foreign-office deposits, federal funds purchased, securities 

sold under agreements to repurchase, and other borrowings. 

Yield on earning assets—total interest, dividend, and fee 

income earned on loans and investments as a percentage of 

average earning assets. 

FDIC Quarterly 21 2008, Volume 2, No. 3