QUARTERLY 2023 VOLUME 17, NUMBER 3

1 

INSURED INSTITUTION PERFORMANCE

Net Income Decreased From the Prior Quarter, Driven by Lower Noninterest Income 

The Net Interest Margin Declined for the Second Straight Quarter

Unrealized Losses on Securities Increased Quarter Over Quarter

Loan Balances Increased From Last Quarter and a Year Ago 

Total Deposits Declined for a Fifth Consecutive Quarter 

Asset Quality Metrics Remained Favorable Despite Modest Deterioration

NET INCOME DECLINED QUARTER 

OVER QUARTER BUT INCREASED 

YEAR OVER YEAR

Net income for the 4,645 FDIC-insured commercial banks and savings 

institutions declined $9.0 billion (11.3 percent) from one quarter ago to 

$70.8 billion in second quarter 2023. Declines in noninterest income, 

reflecting the accounting treatment of the acquisition of three failed 

institutions, lower net interest income, and higher provision expense 

drove the decrease. Without the three failed-bank acquisitions in 

the past two quarters, net income would have been roughly flat from 

the prior quarter. Year-over-year net income increased $6.4 billion 

(9.9 percent), as growth in net interest income exceeded growth in 

provision expense and noninterest expense.

The banking industry reported an average return on assets (ROA) of 1.21 

percent in the second quarter, down from 1.36 percent in first quarter 

2023 but up from 1.08 percent in second quarter 2022.

Chart 1

Quarterly Net Income

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

Net Operating Income

Realized Securities Gains/Losses, Net

-40

-20

0

20

40

60

80

100

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Chart 2

Source: FDIC.

Percent

Quarterly Net Interest Margin

All FDIC-Insured Institutions

 Assets > $250 Billion

 Assets $10 Billion - $250 Billion

 Assets $1 Billion - $10 Billion

 Assets $100 Million - $1 Billion

 Assets < $100 Million

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Industry
QUARTERLY 2023 VOLUME 17, NUMBER 3

2 

THE NET INTEREST MARGIN 

DECLINED FOR THE SECOND 

STRAIGHT QUARTER

Following a decline of 7 basis points in first quarter, the net interest 

margin (NIM) declined 3 basis points to 3.28 percent in the second 

quarter. The NIM remains 48 basis points higher than the year-ago 

quarter and above the pre-pandemic average of 3.25 percent.1

The decline in the NIM reflects the cost of funds (the interest banks pay 

on deposits and other borrowings) rising at a faster rate than yields on 

earning assets (the interest banks earn on loans and securities). The 

yield on earning assets increased 40 basis points from first quarter 

2023 to 5.32 percent, while the cost of funds increased 43 basis points to 

2.05 percent.

NET OPERATING REVENUE 

DECLINED QUARTER OVER 

QUARTER BUT ROSE YEAR OVER 

YEAR

Net operating revenue (net interest income plus noninterest income) 

declined $9.2 billion (3.5 percent) from the prior quarter to $252.5 

billion. Noninterest income declined $7.8 billion (9.1 percent) and 

net interest income declined $1.4 billion (0.8 percent). Excluding the 

accounting gains from the acquisition of the failed banks in the past 

two quarters, noninterest income would have increased $1.3 billion 

quarter over quarter due to higher “all other noninterest income.”2

Interest income increased $21.8 billion (8.4 percent) from first quarter 

2023 but was more than offset by a $23.2 billion (27.2 percent) increase 

in interest expense. From the year-ago quarter, net operating revenue 

rose $24.5 billion (10.7 percent), as net interest income grew $23.2 

billion (15.4 percent) and noninterest income increased $1.3 billion 

(1.7 percent).

1The “pre-pandemic average” refers to the period first quarter 2015 through fourth quarter 2019 and is used consistently throughout this report.

2

“All other noninterest income” includes material write-in items as well as income related to wire transfers and ATM fees, bank card and credit card interchange fees, safe deposit box 

rent, printing and sale of checks, earnings on/increase in value of cash surrender value of life insurance, and other noninterest sources.

Chart 3

Source: FDIC.

Quarter-Over-Quarter Change

($ Billions)

Change in Quarterly Credit Loss Provisions

All FDIC-Insured Institutions

-50

-40

-30

-20

-10

0

10

20

30

40

50

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Chart 4

Source: FDIC.

Note: ASC Topics 810 and 860 resulted in the consolidation of large amounts of securitized loan balances 

back onto banks’ balance sheets in the first quarter of 2010. Although the amount consolidated cannot be

precisely quantified, the industry would have reported a decline in loan balances for the quarter absent

this change in accounting standards.

$ Billions

Quarterly Change in Loan Balances

All FDIC-Insured Institutions

Quarterly Change (Le Axis)

12-Month Growth Rate (Right Axis) Percent

-10

-5

0

5

10

15

-300

-200

-100

0

100

200

300

400

500

20082009 2010 2011 2012 20132014 20152016 2017 2018 2019 20202021 2022 2023
QUARTERLY 2023 VOLUME 17, NUMBER 3

3 

NONINTEREST EXPENSE 

INCREASED

Noninterest expense totaled $141.9 billion, up $559.3 million 

(0.4 percent) from the prior quarter. A decline in salary and employee 

benefits expense (down $2.2 billion, or 3.1 percent) was offset by 

higher “all other noninterest expense” (up $4.1 billion, or 7.3 percent).3

Relative to a year ago, an increase in salary and employee benefits 

expense (up $3.3 billion, or 5.1 percent) and “all other noninterest 

expense” (up $3.3 billion, or 5.9 percent) drove the increase in 

noninterest expense. 

Despite the aggregate growth in noninterest expense for the banking 

industry, the efficiency ratio (noninterest expense to net operating 

revenue) declined 3 percentage points from the year-ago quarter to 

55.7 percent, led by strong growth in net interest income.4 While the 

efficiency ratio declined for most Quarterly Banking Profile (QBP) asset 

size groups, it increased the most for those banks with between $1 and 

$10 billion in assets.

3“All other noninterest expense” includes material write-in items as well as expenses related to data processing, advertising and marketing, legal fees, intracompany 

transactions, and consulting and advisory fees. 

4The reduction in this ratio indicates that the industry was more efficient in producing revenue.

Chart 5

Quarterly Change in Deposits

All FDIC-Insured Institutions

-600

-400

-200

0

200

400

600

800

1,000

1,200

1,400

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

$ Billions

Source: FDIC.

Chart 6

Source: FDIC.

Percent

Noncurrent Loan Rate and Quarterly Net Charge-O
 Rate

All FDIC-Insured Institutions

Quarterly Net Charge-O Rate

Noncurrent Rate

0

1

2

3

4

5

6

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
QUARTERLY 2023 VOLUME 17, NUMBER 3

4 

PROVISION EXPENSE INCREASED 

MODESTLY FROM THE PRIOR 

QUARTER 

Provisions for credit losses were $21.5 billion in second quarter 2023, 

up $726.9 million from the previous quarter and $10.4 billion from the 

year-ago quarter.5Only 191 FDIC-insured banks had not yet adopted 

CECL as of second quarter. 

The reserve coverage ratio (the ratio of the allowance for credit losses 

to noncurrent loans) for all insured institutions increased to 224.8 

percent in second quarter 2023, the highest level since QBP data 

collection began in 1984.

BANKING INDUSTRY ASSETS 

DECREASED FROM FIRST QUARTER 

2023

Total assets of $23.5 trillion declined $254.4 billion (1.1 percent) from 

first quarter 2023. Securities led the decline (down $175.1 billion, 

or 3.1 percent), followed by cash and balances due from depository 

institutions (down $138.1 billion, or 4.9 percent). 

Year over year, total assets decreased $252.8 billion (1.1 percent). 

The growth in total loan and lease balances (up $526.8 billion, or 4.5 

percent) was offset by declines in total securities (down $712.2 billion, 

or 11.6 percent) and cash and balances due from depository institutions 

(down $118.0 billion, or 4.2 percent).

5Provisions for credit losses include both losses for loans and securities for CECL adopters but only loan losses for non-adopters. 

Chart 7

-675

-600

-525

-450

-375

-300

-225

-150

-75

0

75

150

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: FDIC. Note: Insured Call Report filers only. Unrealized losses on securities solely reflect the dierence 

between the market value as of quarter end and the book value of non-equity securities.

Unrealized Gains (Losses) on Investment Securities

All FDIC-Insured Institutions

$ Billions Held-to-Maturity Securities Available-for-Sale Securities

Chart 8

Number and Assets of Banks on the “Problem Bank List”

All FDIC-Insured Institutions

 Assets of Problem Banks (Right Axis)

 Number of Problem Banks (Le Axis) Number $ Billions

Source: FDIC.

Note: The asset values of insured financial institutions on the problem bank list are what were

on record as of the last day of the quarter.

0

100

200

300

400

500

0

100

200

300

400

500

600

700

800

900

1,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
QUARTERLY 2023 VOLUME 17, NUMBER 3

5 

UNREALIZED LOSSES ON 

SECURITIES INCREASED QUARTER 

OVER QUARTER6

Unrealized losses on securities totaled $558.4 billion in the second 

quarter, up $42.9 billion (8.3 percent) from the prior quarter. Unrealized 

losses on held-to-maturity securities totaled $309.6 billion in the 

second quarter, while unrealized losses on available-for-sale securities 

totaled $248.9 billion.7

LOAN BALANCES INCREASED FROM 

LAST QUARTER AND A YEAR AGO

Total loan and lease balances increased $86.5 billion (0.7 percent) from 

the previous quarter. An increase in credit card loans (up $45.0 billion, 

or 4.6 percent) and loans to nondepository financial institutions (up 

$24.3 billion, or 3.2 percent) drove loan growth. 

Year over year, total loan and lease balances increased $526.8 billion 

(4.5 percent). One-to-four family residential loans (up $158.5 billion, or 

6.7 percent) and credit card loans (up $124.4 billion, or 13.8 percent) led 

loan growth during the year ending second quarter.

TOTAL DEPOSITS DECLINED 

QUARTER OVER QUARTER, BUT 

INSURED DEPOSITS INCREASED

Total deposits declined $98.6 billion (0.5 percent) between first and 

second quarter 2023. This was the fifth consecutive quarter that 

the industry reported lower levels of total deposits. A reduction in 

estimated uninsured deposits (down $180.6 billion, or 2.5 percent) 

drove the quarterly decline. Estimated insured deposits continued 

to increase (up $84.9 billion, or 0.8 percent) during the quarter. The 

decline in total deposits in second quarter 2023 was nearly offset by 

increased wholesale funding (up $79.9 billion, or 1.5 percent) from the 

previous quarter.8 Wholesale funding as a percentage of total assets 

rose from 17.1 percent in the year ago quarter to 22.8 percent in second 

quarter 2023.

6Unrealized losses on securities reflect the difference between the market value as of quarter end and the book value of non-equity securities. This calculation does not 

account for any unrealized gains or losses in “accumulated other comprehensive income” because unrealized gains and losses cannot be derived from Call Reports for the 

industry. 

7 Due to rounding, values do not add up to the aggregate value.

8 Wholesale funding includes federal funds purchased and securities sold under agreement to repurchase, Federal Home Loan Bank and other borrowings, brokered and reciprocal 

deposits, listing service deposits, municipal and state deposits, and foreign deposits (which are not FDIC insured).
QUARTERLY 2023 VOLUME 17, NUMBER 3

6 

THE NONCURRENT LOAN RATE 

INCREASED SLIGHTLY FROM THE 

PRIOR QUARTER

The share of loans and leases 90 days or more past due or in nonaccrual 

status increased 1 basis point from the prior quarter and the yearago quarter to 0.76 percent. This ratio remains well below the 

pre-pandemic average noncurrent loan ratio of 1.28 percent. Higher 

noncurrent nonfarm, nonresidential (commercial real estate) loan 

balances drove the quarterly increase.

THE NET CHARGE-OFF RATE 

RETURNED TO ITS PRE-PANDEMIC 

AVERAGE

The net charge-off rate of 0.48 percent increased 7 basis points from 

the prior quarter and 25 basis points from the year-ago quarter. 

Higher credit card net charge-off balances led the quarterly and 

annual increase. The industry’s net charge-off rate is now equal to its 

pre-pandemic average.

CAPITAL RATIOS REMAINED STABLE Equity capital declined $9.5 billion (0.4 percent) in second quarter 

2023, led by a decline in accumulated other comprehensive income 

(down $18.3 billion) from first quarter as higher market interest rates 

decreased the value of some available-for-sale investment securities. 

Retained earnings contributed $19.8 billion to equity formation in 

the second quarter, as net income of $70.8 billion exceeded declared 

dividends of $51.0 billion. 

The leverage capital ratio declined 4 basis points from a quarter ago to 

9.10 percent as average asset growth outpaced capital formation. The 

total risk-based capital ratio increased 11 basis points to 15.17 percent, 

and the tier 1 risk-based capital ratio increased 9 basis points to 13.84 

percent as capital formation grew and risk-weighted assets declined. 

The number of institutions with capital ratios that did not meet Prompt 

Corrective Action requirements for the well-capitalized category 

increased by two from first quarter 2022 to eight.9

9 Prompt Corrective Action categories are assigned based on reported capital ratios only and do not include the effects of regulatory downgrades. 
QUARTERLY 2023 VOLUME 17, NUMBER 3

7 

TWO NEW BANKS OPENED AND ONE 

BANK FAILED IN SECOND QUARTER 

2023

The number of FDIC-insured institutions declined from 4,672 in first 

quarter to 4,645 this quarter. During the quarter, two banks opened, 

one bank failed, and 27 institutions merged. In addition, one bank 

failed during the third quarter and did not file a second quarter 2023 

Call Report. The number of banks on the FDIC’s “Problem Bank List” 

remained unchanged at 43.10 Total assets of problem banks decreased 

from $58.0 billion to $46.0 billion.

Author:

James K. Presley-Nelson

Senior Financial Analyst

Division of Insurance and Research

10Banks on the FDIC’s Problem Bank List have a CAMELS composite rating of “4” or “5” due to financial, operational, or managerial weaknesses, or a combination of such 

issues. It is common for banks to move on or off this list each quarter.
QUARTERLY 2023 VOLUME 17, NUMBER 3

8 

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

2023** 2022** 2022 2021 2020 2019 2018

Return on assets (%) 1.29 1.05 1.11 1.23 0.72 1.29 1.35

Return on equity (%) 13.57 10.97 11.82 12.21 6.85 11.38 11.98

Core capital (leverage) ratio (%) 9.10 8.74 8.98 8.73 8.82 9.66 9.70

Noncurrent assets plus other real estate owned to assets (%) 0.41 0.39 0.39 0.44 0.61 0.55 0.60

Net charge-offs to loans (%) 0.45 0.23 0.27 0.25 0.50 0.52 0.48

Asset growth rate (%) -1.07 4.14 -0.51 8.46 17.29 3.92 3.03

Net interest margin (%) 3.31 2.67 2.95 2.54 2.82 3.36 3.40

Net operating income growth (%) 22.44 -13.63 -3.65 96.90 -38.77 -3.14 45.45

Number of institutions reporting 4,645 4,771 4,706 4,839 5,002 5,177 5,406

 Commercial banks 4,071 4,179 4,127 4,232 4,375 4,518 4,715

 Savings institutions 574 592 579 607 627 659 691

Percentage of unprofitable institutions (%) 4.13 4.76 3.51 3.10 4.68 3.73 3.46

Number of problem institutions 43 40 39 44 56 51 60

Assets of problem institutions (in billions)*** $46 $170 $47 $170 $56 $46 $48

Number of failed institutions 3 0 0 0 4 4 0

* Excludes insured branches of foreign banks (IBAs).

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

*** Assets shown are what were on record as of the last day of the quarter.
QUARTERLY 2023 VOLUME 17, NUMBER 3

9 

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

(dollar figures in millions)

Number of institutions reporting 

2nd Quarter

2023

1st Quarter

2023

2nd Quarter

2022

%Change 

22Q2-23Q2

4,645 4,672 4,771 -2.6

Total employees (full-time equivalent) 2,114,605 2,128,398 2,100,337 0.7

CONDITION DATA

Total assets $23,465,090 $23,719,547 $23,717,901 -1.1

 Loans secured by real estate 5,849,575 5,801,496 5,499,188 6.4

 1-4 Family residential mortgages 2,526,058 2,506,251 2,367,593 6.7

 Nonfarm nonresidential 1,796,877 1,782,848 1,708,943 5.1

 Construction and development 488,531 479,673 429,447 13.8

 Home equity lines 269,118 269,803 266,734 0.9

 Commercial & industrial loans 2,517,293 2,529,251 2,487,474 1.2

 Loans to individuals 2,072,145 2,037,652 1,961,745 5.6

 Credit cards 1,027,817 982,813 903,452 13.8

 Farm loans 75,726 69,938 70,854 6.9

 Other loans & leases 1,785,726 1,775,349 1,753,990 1.8

 Less: Unearned income 1,943 1,636 1,508 28.9

 Total loans & leases 12,298,521 12,212,050 11,771,745 4.5

Less: Reserve for losses* 209,023 202,213 179,204 16.6

Net loans and leases 12,089,498 12,009,837 11,592,541 4.3

Securities** 5,436,351 5,611,440 6,148,530 -11.6

Other real estate owned 2,841 2,687 2,807 1.2

Goodwill and other intangibles 435,999 435,470 421,402 3.5

 All other assets 5,500,401 5,660,112 5,552,621 -0.9

Total liabilities and capital 23,465,090 23,719,547 23,717,901 -1.1

 Deposits 18,643,919 18,742,490 19,562,789 -4.7

 Domestic office deposits 17,197,919 17,303,968 18,077,010 -4.9

 Foreign office deposits 1,446,000 1,438,522 1,485,779 -2.7

 Other borrowed funds 1,738,616 1,900,803 1,138,443 52.7

 Subordinated debt 59,450 60,822 63,463 -6.3

 All other liabilities 769,765 752,701 732,830 5.0

 Total equity capital (includes minority interests) 2,253,341 2,262,731 2,220,372 1.5

 Bank equity capital 2,250,964 2,260,453 2,218,123 1.5

Loans and leases 30-89 days past due 62,250 63,502 56,914 9.4

Noncurrent loans and leases 92,991 92,128 87,999 5.7

Restructured loans and leases 21,155 13,150 42,193 -49.9

Mortgage-backed securities 2,962,311 3,032,157 3,379,239 -12.3

Earning assets 21,267,662 21,522,510 21,523,188 -1.2

FHLB Advances 658,681 804,438 325,742 102.2

Unused loan commitments 9,815,032 9,693,165 9,456,245 3.8

Trust assets 31,771,357 18,456,457 18,117,743 75.4

Assets securitized and sold 383,090 383,911 411,326 -6.9

Notional amount of derivatives 224,647,898 220,468,605 197,421,142 13.8

INCOME DATA

First Half 

2023

First Half 

2022 %Change

2nd Quarter

2023

2nd Quarter

2022

%Change 

22Q2-23Q2

Total interest income $542,542 $310,628 74.7 $283,192 $164,977 71.7

Total interest expense 193,441 22,259 769.1 108,861 13,851 685.9

 Net interest income 349,102 288,369 21.1 174,331 151,126 15.4

Provision for credit losses*** 42,184 16,288 159.0 21,464 11,078 93.8

Total noninterest income 163,853 153,400 6.8 78,185 76,887 1.7

Total noninterest expense 282,326 267,852 5.4 141,894 134,833 5.2

Securities gains (losses) -3,410 -896 N/M -1,236 -307 N/M

Applicable income taxes 34,521 32,213 7.2 17,017 17,074 -0.3

Extraordinary gains, net**** 4 -249 N/M -1 -249 N/M

 Total net income (includes minority interests) 150,517 124,271 21.1 70,903 64,473 10.0

 Bank net income 150,288 124,153 21.1 70,772 64,411 9.9

Net charge-offs 27,166 12,963 109.6 14,741 6,688 120.4

Cash dividends 95,127 57,708 64.8 50,994 29,081 75.4

Retained earnings 55,161 66,444 -17.0 19,777 35,330 -44.0

 Net operating income 153,365 125,253 22.4 71,937 64,975 10.7

* For institutions that have adopted ASU 2016-13, this item represents the allowance for credit losses on loans and leases held for investment and allocated transfer risk.

** For institutions that have adopted ASU 2016-13, securities are reported net of allowances for credit losses.

*** For institutions that have adopted ASU 2016-13, this item represents provisions for credit losses on a consolidated basis; for institutions that have not adopted ASU 2016-13, 

this item represents the provision for loan and lease losses.

**** See Notes to Users for explanation.

 N/M - Not Meaningful
QUARTERLY 2023 VOLUME 17, NUMBER 3

10 

TABLE III-A. Second Quarter 2023, All FDIC-Insured Institutions

SECOND QUARTER

(The way it is...)

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

Number of institutions reporting 4,645 10 5 1,018 2,521 326 41 254 403 67

 Commercial banks 4,071 9 5 1,006 2,285 95 32 231 352 56

 Savings institutions 574 1 0 12 236 231 9 23 51 11

Total assets (in billions) $23,465.1 $476.2 $5,889.3 $289.3 $8,347.3 $686.5 $385.9 $56.2 $92.0 $7,242.4

 Commercial banks 22,191.4 375.4 5,889.3 282.0 7,928.6 129.5 380.1 51.4 82.2 7,073.1

 Savings institutions 1,273.7 100.7 0.0 7.3 418.7 557.0 5.9 4.8 9.9 169.4

Total deposits (in billions) 18,643.9 364.6 4,481.8 245.0 6,681.9 549.6 317.6 47.6 79.6 5,876.3

 Commercial banks 17,625.2 286.6 4,481.8 241.0 6,354.4 99.8 312.6 44.4 71.5 5,733.1

 Savings institutions 1,018.8 78.0 0.0 4.0 327.5 449.8 5.0 3.2 8.0 143.2

Bank net income (in millions) 70,772 2,979 19,232 868 22,655 1,098 1,425 483 240 21,792

 Commercial banks 68,240 2,443 19,232 832 21,754 261 1,419 343 224 21,732

 Savings institutions 2,531 536 0 36 901 837 6 140 16 60

Performance Ratios (annualized, %)

Yield on earning assets 5.32 13.76 5.25 4.87 5.21 3.26 6.86 4.17 4.47 5.10

Cost of funding earning assets 2.05 3.44 2.39 1.43 1.85 1.73 3.23 1.02 1.05 1.92

 Net interest margin 3.28 10.32 2.86 3.44 3.36 1.53 3.63 3.15 3.42 3.17

Noninterest income to assets 1.33 6.36 1.80 0.54 0.86 0.69 1.17 5.96 0.82 1.24

Noninterest expense to assets 2.42 9.18 2.33 2.29 2.35 1.33 2.06 4.43 2.74 2.24

Credit loss provision to assets** 0.37 3.78 0.30 0.08 0.21 0.01 0.57 0.07 0.08 0.42

Net operating income to assets 1.23 2.54 1.37 1.22 1.10 0.63 1.49 3.39 1.06 1.20

Pretax return on assets 1.50 3.31 1.65 1.38 1.35 0.82 1.94 4.38 1.18 1.45

Return on assets 1.21 2.53 1.32 1.21 1.08 0.63 1.49 3.41 1.04 1.19

Return on equity 12.60 24.30 14.15 13.35 10.87 9.98 17.93 31.21 11.86 12.39

Net charge-offs to loans and leases 0.48 3.54 0.56 0.06 0.18 0.02 0.84 0.17 0.10 0.61

Loan and lease loss provision to net 

charge-offs 151.16 128.37 176.55 212.56 175.77 182.78 85.65 161.00 138.82 148.21

Efficiency ratio 55.66 55.96 53.20 60.38 59.07 61.67 44.91 49.62 67.98 54.04

% of unprofitable institutions 5.08 10.00 0.00 3.05 4.01 14.11 14.63 10.24 4.96 7.46

% of institutions with earnings gains 52.42 50.00 60.00 58.64 50.61 41.10 41.46 64.17 51.36 49.25

Structural Changes

 New reporters 2 0 0 0 0 0 0 2 0 0

 Institutions absorbed by mergers 26 0 0 6 17 0 0 1 1 1

 Failed institutions 1 0 0 0 0 0 0 0 0 1

PRIOR SECOND QUARTERS

(The way it was...)

Return on assets (%) 2022 1.08 4.00 0.95 1.22 1.11 0.89 1.93 1.56 0.99 0.94

2020 0.36 0.11 0.28 1.41 0.50 1.16 0.51 3.00 1.29 0.14

2018 1.37 2.73 1.23 1.34 1.28 1.07 1.20 3.75 1.14 1.45

Net charge-offs to loans & leases (%) 2022 0.23 2.14 0.30 0.03 0.08 0.02 0.45 0.11 0.03 0.18

2020 0.57 4.26 0.79 0.19 0.28 0.02 0.34 0.36 0.07 0.50

2018 0.48 4.02 0.50 0.19 0.16 0.01 1.14 0.05 0.09 0.36

* See Table IV-A for explanations.

** For institutions that have adopted ASU 2016-13, the numerator represents provisions for credit losses on a consolidated basis; for institutions that have not adopted 

ASU 2016-13, the numerator represents the provision for loan and lease losses.
QUARTERLY 2023 VOLUME 17, NUMBER 3

11 

TABLE III-A. Second Quarter 2023, All FDIC-Insured Institutions

SECOND QUARTER

(The way it is...)

All Insured

Institutions

Asset Size Distribution Geographic Regions*

Less

Than

$100 

Million

$100 

Million 

to $1 

Billion

$1 Billion

to $10 

Billion

$10 Billion 

to $250 

Billion

Greater

Than 

$250

Billion New York Atlanta Chicago

Kansas

City Dallas

San

Francisco

Number of institutions reporting 4,645 733 2,920 836 142 14 547 528 994 1,188 1,043 345

 Commercial banks 4,071 642 2,589 700 127 13 288 482 858 1,151 977 315

 Savings institutions 574 91 331 136 15 1 259 46 136 37 66 30

Total assets (in billions) $23,465.1 $44.3 $1,080.1 $2,306.1 $6,465.7 $13,568.9 $4,519.3 $4,774.0 $5,962.9 $4,163.5 $2,013.5 $2,031.9

 Commercial banks 22,191.4 39.3 948.7 1,968.8 5,995.0 13,239.6 4,147.7 4,722.5 5,887.9 4,105.1 1,456.7 1,871.5

 Savings institutions 1,273.7 5.0 131.4 337.3 470.7 329.4 371.6 51.5 75.0 58.4 556.8 160.4

Total deposits (in billions) 18,643.9 37.0 916.1 1,888.6 5,160.4 10,641.7 3,594.1 3,838.9 4,554.9 3,379.8 1,643.1 1,633.1

 Commercial banks 17,625.2 33.3 810.5 1,623.6 4,787.9 10,370.0 3,298.2 3,801.4 4,502.7 3,330.7 1,188.3 1,504.0

 Savings institutions 1,018.8 3.7 105.6 265.0 372.6 271.8 295.9 37.5 52.3 49.2 454.8 129.1

Bank net income (in millions) 70,772 110 3,326 6,870 19,881 40,583 11,789 14,459 20,572 11,086 5,158 7,707

 Commercial banks 68,240 102 2,953 6,226 18,664 40,296 11,111 14,434 20,284 10,845 4,576 6,992

 Savings institutions 2,531 9 374 644 1,218 287 679 25 289 242 583 714

Performance Ratios (annualized, %)

Yield on earning assets 5.32 4.75 4.91 5.29 5.84 5.11 5.55 5.13 5.01 5.42 4.68 6.60

Cost of funding earning assets 2.05 1.00 1.37 1.74 2.20 2.08 2.47 1.79 1.91 2.06 1.73 2.38

 Net interest margin 3.28 3.75 3.54 3.55 3.64 3.03 3.08 3.33 3.10 3.36 2.95 4.22

Noninterest income to assets 1.33 1.65 1.13 1.06 1.32 1.40 1.18 1.11 1.70 1.04 0.82 2.23

Noninterest expense to assets 2.42 3.87 2.89 2.65 2.62 2.24 2.28 2.28 2.37 2.39 2.20 3.48

Credit loss provision to assets** 0.37 0.08 0.09 0.20 0.47 0.37 0.35 0.40 0.32 0.35 0.12 0.73

Net operating income to assets 1.23 1.01 1.25 1.21 1.24 1.22 1.05 1.21 1.45 1.07 1.03 1.52

Pretax return on assets 1.50 1.17 1.46 1.49 1.58 1.46 1.32 1.42 1.72 1.34 1.23 1.98

Return on assets 1.21 0.99 1.24 1.20 1.23 1.19 1.05 1.20 1.39 1.06 1.02 1.51

Return on equity 12.60 7.88 12.94 12.16 12.69 12.63 10.41 12.25 14.67 11.15 12.34 15.78

Net charge-offs to loans and leases 0.48 0.04 0.07 0.22 0.52 0.58 0.46 0.62 0.35 0.45 0.15 0.88

Loan and lease loss provision to net 

charge-offs 151.16 340.08 189.55 135.54 141.09 158.69 145.02 131.26 207.73 163.85 161.13 124.90

Efficiency ratio 55.66 75.21 64.78 60.22 55.38 54.12 57.01 54.86 52.36 58.12 61.02 55.53

% of unprofitable institutions 5.08 12.82 3.90 2.75 3.52 0.00 7.50 7.01 5.23 3.28 3.45 8.99

% of institutions with earnings gains 52.42 62.07 52.43 44.86 46.48 57.14 45.70 59.66 52.31 49.33 55.51 53.62

Structural Changes

 New reporters 2 2 0 0 0 0 0 0 1 0 0 1

 Institutions absorbed by mergers 26 11 10 4 1 0 3 2 10 5 6 0

 Failed institutions 1 0 0 0 1 0 0 0 0 0 0 1

PRIOR SECOND QUARTERS

(The way it was...)

Return on assets (%) 2022 1.08 0.81 1.13 1.24 1.33 0.92 0.91 1.06 1.03 1.05 1.10 1.59

 2020 0.36 0.98 1.29 1.09 0.38 0.14 0.13 0.32 0.51 -0.09 0.86 0.96

 2018 1.37 1.08 1.27 1.29 1.47 1.34 1.20 1.50 1.30 1.27 1.42 1.76

Net charge-offs to loans and 

leases (%) 2022 0.23 0.04 0.04 0.12 0.30 0.24 0.21 0.29 0.16 0.24 0.07 0.37

 2020 0.57 0.17 0.13 0.23 0.74 0.60 0.54 0.61 0.45 0.63 0.45 0.73

 2018 0.48 0.11 0.11 0.27 0.69 0.43 0.60 0.54 0.25 0.49 0.21 0.70

* See Table IV-A for explanations.

** For institutions that have adopted ASU 2016-13, the numerator represents provisions for credit losses on a consolidated basis; for institutions that have not adopted ASU 

2016-13, the numerator represents the provision for loan and lease losses.
QUARTERLY 2023 VOLUME 17, NUMBER 3

12 

TABLE IV-A. First Half 2023, All FDIC-Insured Institutions

FIRST HALF

(The way it is...)

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

<$1Billion

All Other

>$1 Billion

Number of institutions reporting 4,645 10 5 1,018 2,521 326 41 254 403 67

 Commercial banks 4,071 9 5 1,006 2,285 95 32 231 352 56

 Savings institutions 574 1 0 12 236 231 9 23 51 11

Total assets (in billions) $23,465.1 $476.2 $5,889.3 $289.3 $8,347.3 $686.5 $385.9 $56.2 $92.0 $7,242.4

 Commercial banks 22,191.4 375.4 5,889.3 282.0 7,928.6 129.5 380.1 51.4 82.2 7,073.1

 Savings institutions 1,273.7 100.7 0.0 7.3 418.7 557.0 5.9 4.8 9.9 169.4

Total deposits (in billions) 18,643.9 364.6 4,481.8 245.0 6,681.9 549.6 317.6 47.6 79.6 5,876.3

 Commercial banks 17,625.2 286.6 4,481.8 241.0 6,354.4 99.8 312.6 44.4 71.5 5,733.1

 Savings institutions 1,018.8 78.0 0.0 4.0 327.5 449.8 5.0 3.2 8.0 143.2

Bank net income (in millions) 150,288 6,608 37,212 1,770 54,649 2,265 2,702 815 481 43,787

 Commercial banks 145,096 5,542 37,212 1,694 52,779 538 2,691 523 450 43,667

 Savings institutions 5,192 1,066 0 76 1,870 1,726 11 292 31 120

Performance Ratios (annualized, %)

Yield on earning assets 5.14 13.63 5.01 4.70 5.05 3.16 6.67 4.08 4.34 4.93

Cost of funding earning assets 1.83 3.25 2.17 1.25 1.62 1.48 2.99 0.90 0.92 1.73

 Net interest margin 3.31 10.39 2.84 3.45 3.42 1.67 3.69 3.17 3.42 3.20

Noninterest income to assets 1.41 6.42 1.79 0.54 1.13 0.66 1.11 5.28 0.79 1.19

Noninterest expense to assets 2.42 9.13 2.31 2.30 2.38 1.41 2.09 4.50 2.71 2.24

Credit loss provision to assets** 0.36 3.53 0.30 0.06 0.25 0.01 0.66 0.08 0.08 0.38

Net operating income to assets 1.32 2.85 1.33 1.25 1.35 0.65 1.41 2.87 1.06 1.22

Pretax return on assets 1.59 3.71 1.64 1.39 1.60 0.84 1.82 3.63 1.18 1.45

Return on assets 1.29 2.85 1.28 1.23 1.33 0.65 1.42 2.87 1.05 1.20

Return on equity 13.57 27.05 13.78 13.83 13.42 10.77 17.21 27.12 12.08 12.55

Net charge-offs to loans and leases 0.45 3.35 0.52 0.05 0.17 0.03 0.85 0.21 0.09 0.56

Loan and lease loss provision to net 

charge-offs 153.69 126.24 169.36 184.15 210.26 159.36 109.52 129.66 145.22 142.38

Efficiency ratio 54.28 55.30 53.27 60.56 54.41 62.11 45.54 54.48 67.66 54.40

% of unprofitable institutions 4.13 0.00 0.00 2.16 3.17 12.27 14.63 8.66 4.47 5.97

% of institutions with earnings gains 60.00 60.00 60.00 68.76 58.35 46.63 43.90 67.72 57.82 47.76

Condition Ratios (%)

Earning assets to total assets 90.64 96.04 88.90 93.67 90.94 95.87 94.07 91.72 93.51 90.50

Loss Allowance to:

 Loans and leases 1.70 6.88 1.86 1.34 1.28 0.62 2.07 1.57 1.28 1.76

 Noncurrent loans and leases 224.78 524.73 279.64 272.21 188.09 154.45 332.96 213.54 207.85 191.10

Noncurrent assets plus other real estate 

owned to assets 0.41 1.09 0.24 0.34 0.48 0.15 0.47 0.23 0.37 0.46

Equity capital ratio 9.59 10.36 9.28 9.00 10.01 6.74 8.42 11.14 8.78 9.68

Core capital (leverage) ratio 9.10 10.88 8.34 10.81 9.57 9.84 9.71 14.84 11.24 8.81

Common equity tier 1 capital ratio*** 13.78 12.55 15.86 13.84 12.06 26.25 14.50 33.60 17.28 14.01

Tier 1 risk-based capital ratio*** 13.84 12.70 15.93 13.84 12.12 26.25 14.53 33.60 17.28 14.06

Total risk-based capital ratio*** 15.17 14.69 17.09 14.93 13.43 26.72 15.55 34.45 18.34 15.56

Net loans and leases to deposits 64.84 101.40 44.97 75.37 82.37 44.00 89.38 31.51 63.58 58.28

Net loans and leases to total assets 51.52 77.64 34.22 63.82 65.93 35.23 73.55 26.68 54.96 47.29

Domestic deposits to total assets 73.29 76.57 54.48 84.68 79.95 79.90 82.29 84.68 86.42 78.88

Structural Changes

 New reporters 3 0 0 0 0 0 0 3 0 0

 Institutions absorbed by mergers 57 0 0 12 41 0 0 1 2 1

 Failed institutions 3 0 0 0 1 0 0 0 0 2

PRIOR FIRST HALVES

(The way it was...)

Number of institutions 2022 4,771 11 5 1,074 2,438 295 35 342 481 90

 2020 5,066 11 5 1,198 2,790 296 39 217 442 68

 2018 5,542 12 5 1,383 2,894 406 71 246 474 51

Total assets (in billions) 2022 $23,717.9 $528.6 $5,920.0 $299.4 $7,448.3 $333.7 $364.4 $78.4 $116.6 $8,628.6

 2020 21,139.3 504.9 5,241.5 280.1 7,467.5 610.4 129.4 38.1 86.0 6,781.6

 2018 17,532.9 626.4 4,222.2 283.8 6,167.6 356.4 216.8 39.7 80.4 5,539.6

Return on assets (%) 2022 1.05 4.31 0.87 1.16 1.08 0.92 1.81 1.42 0.94 0.92

 2020 0.37 0.11 0.36 1.34 0.35 1.06 1.29 2.98 1.10 0.28

 2018 1.33 2.71 1.22 1.32 1.24 1.08 1.31 3.63 1.07 1.35

Net charge-offs to loans & leases (%) 2022 0.23 2.03 0.29 0.02 0.09 0.01 0.42 0.11 0.02 0.17

 2020 0.56 4.30 0.77 0.14 0.26 0.02 0.41 0.34 0.07 0.49

 2018 0.49 4.02 0.53 0.13 0.17 0.02 0.97 0.11 0.13 0.37

Noncurrent assets plus OREO 

to assets (%) 2022 0.39 0.81 0.25 0.41 0.47 0.30 0.48 0.22 0.35 0.38

 2020 0.59 1.10 0.37 0.88 0.66 0.24 0.38 0.37 0.64 0.68

 2018 0.65 1.05 0.43 0.88 0.65 1.61 0.47 0.44 0.76 0.71

Equity capital ratio (%) 2022 9.35 12.25 8.87 8.80 9.95 8.76 8.56 10.59 9.01 9.06

 2020 10.16 11.48 8.99 11.46 11.15 8.61 9.58 16.40 12.36 9.90

 2018 11.30 15.29 10.02 11.31 11.91 11.23 10.35 16.62 11.86 11.12

*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.

** For institutions that have adopted ASU 2016-13, the numerator represents provisions for credit losses on a consolidated basis; for institutions that have not adopted ASU 2016-13, 

the numerator represents the provision for loan and lease losses.

*** Beginning March 2020, does not include institutions that have a Community Bank Leverage Ratio election in effect at the report date.
QUARTERLY 2023 VOLUME 17, NUMBER 3

13 

TABLE IV-A. First Half 2023, All FDIC-Insured Institutions

FIRST HALF

(The way it is...)

All Insured

Institutions

Asset Size Distribution Geographic Regions*

Less Than 

$100

Million

$100 

Million to 

$1 Billion

$1 Billion

to $10 

Billion

$10 Billion

to $250 

Billion

Greater

Than $250

Billion New York Atlanta Chicago

Kansas

City Dallas

San

Francisco

Number of institutions reporting 4,645 733 2,920 836 142 14 547 528 994 1,188 1,043 345

 Commercial banks 4,071 642 2,589 700 127 13 288 482 858 1,151 977 315

 Savings institutions 574 91 331 136 15 1 259 46 136 37 66 30

Total assets (in billions) $23,465.1 $44.3 $1,080.1 $2,306.1 $6,465.7 $13,568.9 $4,519.3 $4,774.0 $5,962.9 $4,163.5 $2,013.5 $2,031.9

 Commercial banks 22,191.4 39.3 948.7 1,968.8 5,995.0 13,239.6 4,147.7 4,722.5 5,887.9 4,105.1 1,456.7 1,871.5

 Savings institutions 1,273.7 5.0 131.4 337.3 470.7 329.4 371.6 51.5 75.0 58.4 556.8 160.4

Total deposits (in billions) 18,643.9 37.0 916.1 1,888.6 5,160.4 10,641.7 3,594.1 3,838.9 4,554.9 3,379.8 1,643.1 1,633.1

 Commercial banks 17,625.2 33.3 810.5 1,623.6 4,787.9 10,370.0 3,298.2 3,801.4 4,502.7 3,330.7 1,188.3 1,504.0

 Savings institutions 1,018.8 3.7 105.6 265.0 372.6 271.8 295.9 37.5 52.3 49.2 454.8 129.1

Bank net income (in millions) 150,288 224 6,564 13,425 49,370 80,706 25,375 38,090 38,520 24,116 10,283 13,904

 Commercial banks 145,096 205 5,799 12,100 46,972 80,021 23,966 37,975 37,921 23,665 9,079 12,491

 Savings institutions 5,192 19 764 1,325 2,399 685 1,409 115 599 452 1,205 1,412

Performance Ratios (annualized, %)

Yield on earning assets 5.14 4.59 4.77 5.17 5.65 4.92 5.32 4.95 4.83 5.24 4.54 6.44

Cost of funding earning assets 1.83 0.87 1.20 1.55 1.96 1.88 2.22 1.56 1.72 1.88 1.49 2.16

 Net interest margin 3.31 3.72 3.57 3.62 3.68 3.05 3.10 3.39 3.11 3.35 3.05 4.28

Noninterest income to assets 1.41 1.61 1.07 1.02 1.65 1.38 1.22 1.50 1.63 1.13 0.77 2.15

Noninterest expense to assets 2.42 3.81 2.88 2.65 2.64 2.24 2.26 2.28 2.38 2.37 2.23 3.56

Credit loss provision to assets** 0.36 0.06 0.08 0.21 0.49 0.35 0.31 0.44 0.31 0.34 0.12 0.73

Net operating income to assets 1.32 1.02 1.24 1.22 1.56 1.22 1.15 1.62 1.38 1.16 1.04 1.41

Pretax return on assets 1.59 1.18 1.44 1.48 1.90 1.47 1.42 1.82 1.66 1.45 1.24 1.84

Return on assets 1.29 1.01 1.23 1.18 1.55 1.19 1.13 1.60 1.32 1.15 1.02 1.38

Return on equity 13.57 8.08 12.98 12.05 16.05 12.71 11.33 16.41 13.99 12.19 12.59 14.44

Net charge-offs to loans and leases 0.45 0.04 0.06 0.22 0.50 0.53 0.42 0.56 0.32 0.41 0.13 0.87

Loan and lease loss provision to net 

charge-offs 153.69 291.82 199.73 139.67 150.86 156.50 134.72 148.40 205.66 162.92 180.71 127.32

Efficiency ratio 54.28 75.02 65.00 59.91 50.94 54.20 55.72 49.57 53.27 56.61 61.35 55.06

% of unprofitable institutions 4.13 10.50 3.22 1.79 3.52 7.14 6.03 5.68 4.12 2.27 3.16 8.12

% of institutions with earnings gains 60.00 68.89 60.96 50.36 51.41 57.14 51.37 69.70 58.15 59.60 62.32 58.55

Condition Ratios (%)

Earning assets to total assets 90.64 92.78 93.66 92.93 92.05 89.32 90.02 90.05 89.77 90.44 92.80 94.14

Loss Allowance to:

 Loans and leases 1.70 1.44 1.29 1.34 1.77 1.80 1.67 1.68 1.56 1.79 1.27 2.29

 Noncurrent loans and leases 224.78 174.19 263.59 233.78 224.87 220.38 191.17 230.48 230.74 226.10 155.26 344.15

Noncurrent assets plus other real 

estate owned to assets 0.41 0.49 0.36 0.43 0.52 0.36 0.48 0.40 0.34 0.41 0.47 0.46

Equity capital ratio 9.59 12.63 9.55 9.84 9.67 9.51 10.04 9.87 9.44 9.54 8.44 9.64

Core capital (leverage) ratio 9.10 14.44 11.28 10.54 9.45 8.50 9.36 8.62 8.82 8.98 9.79 10.04

Common equity tier 1 capital ratio*** 13.78 22.64 15.45 13.47 13.11 14.13 13.80 12.95 14.34 13.24 14.88 14.29

Tier 1 risk-based capital ratio*** 13.84 22.64 15.48 13.50 13.22 14.16 13.83 13.00 14.39 13.33 14.99 14.34

Total risk-based capital ratio*** 15.17 23.69 16.59 14.56 14.55 15.55 15.09 14.23 15.79 14.90 16.13 15.60

Net loans and leases to deposits 64.84 64.56 75.81 83.64 78.54 53.92 65.74 64.45 62.37 59.97 64.52 81.13

Net loans and leases to total assets 51.52 53.93 64.30 68.49 62.69 42.29 52.28 51.82 47.64 48.68 52.65 65.20

Domestic deposits to total assets 73.29 83.52 84.81 81.80 78.45 68.43 75.51 77.92 67.66 66.33 81.58 80.05

Structural Changes

 New reporters 3 3 0 0 0 0 0 0 2 0 0 1

 Institutions absorbed by mergers 57 16 26 12 3 0 4 8 20 11 12 2

 Failed institutions 3 0 0 0 3 0 1 0 0 0 0 2

PRIOR FIRST HALVES 

(The way it was...)

Number of institutions 2022 4,771 785 3,010 817 146 13 564 544 1,025 1,219 1,062 357

 2020 5,066 1,010 3,153 755 135 13 607 576 1,085 1,306 1,121 371

 2018 5,542 1,372 3,399 637 125 9 675 645 1,195 1,412 1,205 410

Total assets (in billions) 2022 $23,717.9 $47.9 $1,107.7 $2,193.1 $7,101.8 $13,267.4 $4,520.6 $4,682.7 $5,733.5 $4,170.4 $2,027.7 $2,583.0

 2020 21,139.3 60.6 1,096.0 2,024.4 6,097.9 11,860.4 3,870.1 4,363.0 4,957.6 4,123.9 1,684.2 2,140.6

 2018 17,532.9 81.8 1,112.2 1,706.7 5,951.5 8,680.7 3,276.4 3,614.2 3,957.2 3,626.7 1,114.0 1,944.4

Return on assets (%) 2022 1.05 0.81 1.07 1.22 1.31 0.88 0.93 1.06 0.96 0.97 1.04 1.56

 2020 0.37 0.93 1.18 0.94 0.12 0.33 0.34 0.18 0.50 0.20 0.82 0.51

 2018 1.33 1.02 1.23 1.28 1.42 1.29 1.17 1.41 1.29 1.22 1.38 1.70

Net charge-offs to loans & leases (%) 2022 0.23 0.04 0.03 0.11 0.30 0.23 0.21 0.29 0.15 0.24 0.07 0.35

 2020 0.56 0.15 0.12 0.22 0.75 0.57 0.52 0.62 0.44 0.58 0.38 0.77

 2018 0.49 0.15 0.10 0.22 0.71 0.44 0.61 0.55 0.25 0.51 0.21 0.72

Noncurrent assets plus OREO 

to assets (%) 2022 0.39 0.54 0.36 0.43 0.48 0.33 0.43 0.37 0.33 0.41 0.45 0.35

 2020 0.59 0.91 0.69 0.66 0.74 0.50 0.56 0.52 0.52 0.74 0.79 0.55

 2018 0.65 0.99 0.80 0.69 0.63 0.63 0.61 0.72 0.60 0.74 0.76 0.46

Equity capital ratio (%) 2022 9.35 12.24 9.35 9.74 9.85 9.01 9.80 9.89 8.87 9.39 8.20 9.53

 2020 10.16 13.59 11.19 10.82 10.88 9.56 10.61 10.64 9.62 9.57 10.41 10.49

 2018 11.30 13.35 11.32 11.74 12.14 10.61 12.49 12.08 10.49 10.26 11.55 11.26

* 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

** For institutions that have adopted ASU 2016-13, the numerator represents provisions for credit losses on a consolidated basis; for institutions that have not adopted ASU 

2016-13, the numerator represents the provision for loan and lease losses.

*** Beginning March 2020, does not include institutions that have a Community Bank Leverage Ratio election in effect at the report date.
QUARTERLY 2023 VOLUME 17, NUMBER 3

14 

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

June 30, 2023 All Insured 

Institutions

Asset Concentration Groups*

Credit 

Card

Banks

International

Banks

Agricultural

Banks

Commercial

Lenders

Mortgage

Lenders

Consumer

Lenders

Other

Specialized

<$1 Billion

All Other

<$1 Billion

All Other

>$1 

Billion

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.37 0.27 0.26 0.39 0.36 0.31 0.14 0.69 0.62 0.47

 Construction and development 0.34 0.29 0.33 0.63 0.31 0.34 0.06 0.47 0.52 0.49

 Nonfarm nonresidential 0.19 0.16 0.34 0.27 0.17 0.16 0.03 0.49 0.38 0.26

 Multifamily residential real estate 0.12 0.00 0.03 0.06 0.16 0.08 0.05 0.18 0.16 0.04

 Home equity loans 0.48 0.00 0.68 0.46 0.46 0.32 0.65 0.52 0.50 0.48

 Other 1-4 family residential 0.56 0.27 0.29 0.58 0.71 0.32 0.16 0.98 0.79 0.59

Commercial and industrial loans 0.32 0.84 0.58 0.65 0.24 0.57 0.60 0.77 0.83 0.27

Loans to individuals 1.40 1.45 0.97 0.85 1.02 0.33 2.20 1.16 1.20 1.65

 Credit card loans 1.36 1.48 0.98 1.17 1.51 1.48 2.45 1.19 1.19 1.57

 Other loans to individuals 1.44 1.16 0.95 0.81 0.99 0.30 2.20 1.16 1.20 1.73

All other loans and leases (including farm) 0.19 0.86 0.25 0.37 0.22 0.04 0.05 0.49 0.42 0.10

Total loans and leases 0.51 1.37 0.46 0.44 0.37 0.31 1.44 0.74 0.67 0.59

Percent of Loans Noncurrent**

All real estate loans 0.94 0.81 0.92 0.47 0.75 0.43 0.21 0.75 0.58 1.66

 Construction and development 0.41 0.00 1.36 0.29 0.34 0.60 0.43 0.32 0.24 0.56

 Nonfarm nonresidential 0.82 3.06 0.76 0.49 0.60 0.38 0.40 0.73 0.69 2.06

 Multifamily residential real estate 0.21 2.50 0.07 0.31 0.20 0.21 0.05 0.00 0.09 0.51

 Home equity loans 1.71 0.00 5.41 0.20 1.03 0.39 0.78 0.65 0.25 2.60

 Other 1-4 family residential 1.22 0.61 0.95 0.42 1.26 0.44 0.17 0.86 0.59 1.64

Commercial and industrial loans 0.68 0.68 0.80 0.75 0.74 0.42 0.69 0.99 0.72 0.52

Loans to individuals 0.88 1.40 0.79 0.33 0.49 0.12 0.80 0.48 0.49 0.94

 Credit card loans 1.33 1.48 0.98 0.40 1.29 0.89 2.78 0.13 0.75 1.50

 Other loans to individuals 0.45 0.43 0.19 0.32 0.43 0.09 0.77 0.49 0.49 0.40

All other loans and leases (including farm) 0.15 0.61 0.16 0.43 0.20 0.01 0.03 0.39 1.10 0.10

Total loans and leases 0.76 1.31 0.66 0.49 0.68 0.40 0.62 0.74 0.61 0.92

Percent of Loans Charged-Off (net, YTD)

All real estate loans 0.05 0.00 0.01 0.01 0.04 0.00 -0.01 -0.06 0.02 0.14

 Construction and development 0.01 0.00 0.00 0.02 0.02 0.01 0.01 -0.01 0.00 -0.02

 Nonfarm nonresidential 0.17 -0.01 0.28 0.01 0.09 0.02 -0.01 0.00 0.00 0.57

 Multifamily residential real estate 0.02 0.00 0.00 -0.01 0.01 0.00 0.00 0.00 0.00 0.09

 Home equity loans -0.07 0.00 -0.29 0.01 -0.03 -0.06 -0.35 0.06 0.00 -0.12

 Other 1-4 family residential 0.01 0.01 -0.01 0.00 0.00 0.01 0.00 -0.07 0.03 0.03

Commercial and industrial loans 0.29 2.18 0.28 0.16 0.28 0.05 0.62 0.25 0.14 0.20

Loans to individuals 2.05 3.54 2.04 0.45 1.08 0.32 1.27 1.53 0.33 2.10

 Credit card loans 3.26 3.67 2.53 1.97 4.16 2.75 7.48 1.07 1.06 3.47

 Other loans to individuals 0.88 2.03 0.46 0.28 0.87 0.25 1.19 1.55 0.32 0.82

All other loans and leases (including farm) 0.11 3.33 0.08 0.05 0.11 0.04 0.03 1.22 0.62 0.12

Total loans and leases 0.45 3.35 0.52 0.05 0.17 0.03 0.85 0.21 0.09 0.56

Loans Outstanding (in billions)

All real estate loans $5,849.6 $5.2 $700.2 $121.0 $3,458.9 $214.1 $61.7 $11.0 $39.6 $1,237.8

 Construction and development 488.5 0.1 22.0 8.9 385.8 5.9 0.6 1.1 2.9 61.2

 Nonfarm nonresidential 1,796.9 0.4 73.4 31.6 1,383.9 15.4 8.5 3.9 8.8 271.1

 Multifamily residential real estate 600.2 0.0 114.1 4.6 398.2 5.4 1.0 0.3 1.2 75.4

 Home equity loans 269.1 0.0 20.9 1.9 172.5 8.9 0.6 0.3 1.3 62.7

 Other 1-4 family residential 2,526.1 4.6 430.1 28.2 1,057.7 177.6 50.9 4.8 22.0 750.1

Commercial and industrial loans 2,517.3 41.9 368.3 23.1 1,250.6 7.2 39.1 1.9 4.5 780.7

Loans to individuals 2,072.1 348.4 424.8 6.5 367.1 14.9 174.5 1.5 4.1 730.4

 Credit card loans 1,027.8 319.7 323.0 0.7 23.9 0.4 2.4 0.0 0.0 357.7

 Other loans to individuals 1,044.3 28.7 101.8 5.9 343.2 14.5 172.0 1.5 4.1 372.8

All other loans and leases (including farm) 1,861.5 1.5 560.2 36.5 500.0 7.3 14.6 0.8 3.1 737.4

Total loans and leases (plus unearned income) 12,300.5 397.0 2,053.5 187.2 5,576.6 243.5 289.9 15.3 51.3 3,486.4

Memo: Other Real Estate Owned 

(in millions)

All other real estate owned 2,841.3 0.9 274.3 72.1 1,632.4 40.6 3.7 17.5 27.6 772.3

 Construction and development 453.9 0.0 5.0 4.5 385.1 10.2 0.9 8.0 12.7 27.5

 Nonfarm nonresidential 1,463.4 0.9 117.0 34.8 813.5 9.8 0.3 6.6 8.5 472.1

 Multifamily residential real estate 70.5 0.0 0.0 2.1 68.3 0.0 0.0 0.0 0.2 0.0

 1-4 family residential 794.0 0.0 150.3 10.8 328.6 20.6 2.5 2.7 5.6 272.7

 Farmland 56.3 0.0 0.0 19.9 35.7 0.0 0.0 0.1 0.6 0.0

* See Table IV-A 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.
QUARTERLY 2023 VOLUME 17, NUMBER 3

15 

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

June 30, 2023 All Insured

Institutions

Asset Size Distribution Geographic Regions*

Less Than

$100 

Million

$100 

Million to

$1 Billion

$1 Billion

to

$10 Billion

$10 Billion

to $250 

Billion

Greater

Than $250

Billion New York Atlanta Chicago

Kansas

City Dallas

San

Francisco

Percent of Loans 30-89 Days 

Past Due 

All loans secured by real estate 0.37 0.93 0.36 0.20 0.45 0.39 0.36 0.40 0.28 0.43 0.58 0.23

 Construction and development 0.34 0.63 0.43 0.26 0.32 0.43 0.46 0.20 0.21 0.48 0.27 0.50

 Nonfarm nonresidential 0.19 0.71 0.23 0.13 0.20 0.22 0.26 0.19 0.16 0.25 0.18 0.09

 Multifamily residential real estate 0.12 0.38 0.12 0.08 0.21 0.03 0.20 0.19 0.05 0.06 0.20 0.04

 Home equity loans 0.48 0.64 0.40 0.37 0.52 0.49 0.45 0.45 0.56 0.55 0.46 0.31

 Other 1-4 family residential 0.56 1.27 0.51 0.31 0.78 0.50 0.49 0.60 0.37 0.59 1.33 0.39

Commercial and industrial loans 0.32 1.32 0.53 0.40 0.28 0.31 0.17 0.29 0.41 0.29 0.29 0.55

Loans to individuals 1.40 1.28 1.16 1.75 1.31 1.44 1.18 1.95 0.84 1.31 0.84 1.73

 Credit card loans 1.36 3.57 3.72 3.38 1.37 1.29 1.56 1.70 0.91 1.15 0.64 1.51

 Other loans to individuals 1.44 1.26 1.07 1.42 1.26 1.63 0.87 2.18 0.78 1.68 0.89 1.94

All other loans and leases (including farm) 0.19 0.50 0.36 0.30 0.24 0.15 0.09 0.13 0.27 0.17 0.16 0.31

Total loans and leases 0.51 0.94 0.41 0.33 0.56 0.53 0.42 0.62 0.39 0.48 0.52 0.72

Percent of Loans Noncurrent** 

All real estate loans 0.94 0.78 0.46 0.46 0.91 1.38 1.01 0.97 0.90 1.19 0.92 0.47

 Construction and development 0.41 0.41 0.33 0.40 0.31 0.70 0.76 0.29 0.60 0.22 0.15 0.57

 Nonfarm nonresidential 0.82 0.89 0.48 0.42 0.73 1.69 1.11 1.01 0.64 1.23 0.38 0.46

 Multifamily residential real estate 0.21 0.20 0.19 0.25 0.19 0.21 0.33 0.33 0.14 0.11 0.11 0.12

 Home equity loans 1.71 0.50 0.44 0.42 1.04 2.90 1.49 1.30 2.12 3.73 0.70 0.50

 Other 1-4 family residential 1.22 0.83 0.47 0.59 1.44 1.39 1.17 1.10 1.12 1.42 2.15 0.56

Commercial and industrial loans 0.68 1.42 0.71 1.02 0.77 0.55 0.93 0.53 0.68 0.52 0.73 0.87

Loans to individuals 0.88 0.68 0.44 0.97 0.89 0.89 0.99 1.01 0.52 0.91 0.64 1.05

 Credit card loans 1.33 1.93 2.05 3.21 1.39 1.24 1.61 1.61 0.88 1.13 1.03 1.44

 Other loans to individuals 0.45 0.67 0.38 0.52 0.48 0.42 0.49 0.45 0.19 0.41 0.53 0.68

All other loans and leases (including farm) 0.15 0.61 0.56 0.37 0.13 0.13 0.13 0.09 0.22 0.12 0.28 0.13

Total loans and leases 0.76 0.83 0.49 0.57 0.79 0.82 0.87 0.73 0.68 0.79 0.82 0.66

Percent of Loans Charged-Off

(net, YTD) 

All real estate loans 0.05 -0.02 0.00 0.01 0.05 0.10 0.06 0.11 0.06 0.02 0.02 0.05

 Construction and development 0.01 -0.02 -0.01 0.00 0.04 0.00 0.04 -0.02 0.02 0.00 0.00 0.08

 Nonfarm nonresidential 0.17 0.01 0.01 0.02 0.14 0.50 0.19 0.34 0.18 0.09 0.05 0.09

 Multifamily residential real estate 0.02 0.00 -0.01 0.01 0.02 0.04 0.01 0.01 0.06 0.00 0.01 0.00

 Home equity loans -0.07 0.00 -0.01 0.01 -0.03 -0.15 -0.04 -0.12 -0.11 -0.09 -0.04 0.01

 Other 1-4 family residential 0.01 -0.03 0.00 0.00 0.00 0.01 -0.01 0.00 0.03 0.00 0.00 0.02

Commercial and industrial loans 0.29 0.25 0.20 0.28 0.40 0.24 0.21 0.29 0.30 0.15 0.20 0.83

Loans to individuals 2.05 0.43 0.75 2.62 2.00 2.07 2.11 2.16 1.41 2.39 0.96 2.49

 Credit card loans 3.26 14.30 4.09 9.31 3.40 3.03 3.80 3.50 2.32 3.05 2.00 3.84

 Other loans to individuals 0.88 0.33 0.64 1.22 0.88 0.85 0.81 0.95 0.58 0.99 0.66 1.22

All other loans and leases (including farm) 0.11 -0.06 0.11 0.15 0.07 0.12 0.08 0.17 0.09 0.09 0.14 0.06

Total loans and leases 0.45 0.04 0.06 0.22 0.50 0.53 0.42 0.56 0.32 0.41 0.13 0.87

Loans Outstanding (in billions) 

All real estate loans $5,849.6 $16.7 $552.8 $1,184.4 $2,048.3 $2,047.3 $1,252.9 $1,001.9 $1,328.3 $909.8 $724.4 $632.2

 Construction and development 488.5 1.1 57.1 130.5 201.9 97.9 90.1 76.7 82.3 70.7 119.2 49.6

 Nonfarm nonresidential 1,796.9 3.5 202.0 496.1 714.5 380.8 405.1 333.9 300.6 224.8 288.9 243.7

 Multifamily residential real estate 600.2 0.4 32.9 135.3 238.2 193.5 189.7 54.3 177.8 61.1 37.2 80.1

 Home equity loans 269.1 0.3 16.1 38.6 99.5 114.7 72.7 57.3 68.0 28.7 21.1 21.3

 Other 1-4 family residential 2,526.1 8.2 192.2 345.1 776.8 1,203.8 489.8 464.0 673.1 437.3 234.0 227.8

Commercial and industrial loans 2,517.3 2.9 84.3 247.8 822.0 1,360.3 426.3 641.3 611.0 440.8 198.3 199.5

Loans to individuals 2,072.1 1.6 27.3 98.0 788.8 1,156.5 388.8 479.2 420.6 309.0 80.3 394.2

 Credit card loans 1,027.8 0.0 0.8 16.6 353.4 657.0 172.2 233.0 200.1 213.2 17.7 191.6

 Other loans to individuals 1,044.3 1.6 26.5 81.4 435.3 499.5 216.7 246.2 220.4 95.8 62.6 202.6

All other loans and leases (including farm) 1,861.5 3.0 39.5 71.4 468.0 1,279.4 335.0 394.1 526.2 404.5 71.1 130.6

Total loans and leases (plus unearned income) 12,300.5 24.3 703.9 1,601.7 4,127.1 5,843.5 2,403.1 2,516.5 2,886.0 2,064.2 1,074.2 1,356.5

Memo: Other Real Estate Owned 

(in millions) 

All other real estate owned 2,841.3 15.7 371.0 685.0 689.4 1,080.1 473.1 671.8 537.1 548.3 451.5 159.6

 Construction and development 453.9 3.8 122.3 193.7 113.5 20.6 58.4 72.5 32.9 88.9 175.3 26.0

 Nonfarm nonresidential 1,463.4 5.7 158.4 338.1 249.0 712.3 131.7 461.7 243.3 371.2 203.4 52.2

 Multifamily residential real estate 70.5 0.4 11.9 47.2 6.4 4.6 47.7 3.0 10.7 6.9 2.2 0.0

 1-4 family residential 794.0 5.8 62.4 84.0 305.1 336.6 235.3 133.1 242.4 66.2 53.5 63.4

 Farmland 56.3 0.1 16.0 20.8 15.4 4.0 0.0 1.0 7.2 13.0 17.1 18.1

* See Table IV-A 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.
QUARTERLY 2023 VOLUME 17, NUMBER 3

16 

TABLE VI-A. Derivatives, All FDIC-Insured Call Report Filers

(dollar figures in millions;

notional amounts unless otherwise indicated)

2nd 

Quarter

2023

1st 

Quarter

2023

4th

 Quarter

2022

3rd 

Quarter

2022

2nd 

Quarter

2022

%

Change

22Q2-

23Q2

Asset Size Distribution

Less 

Than

$100 

Million

$100 

Million

to $1 

Billion

$1 

Billion

to $10 

Billion

$10 

Billion

to $250 

Billion

Greater 

Than

$250 

Billion

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives 1,187 1,178 1,141 1,212 1,254 -5.3 10 506 526 131 14

Total assets of institutions reporting derivatives $21,524,691 $21,778,638 $21,631,677 $21,656,127 $21,873,051 -1.6 $657 $262,110 $1,649,964 $6,043,034 $13,568,926

Total deposits of institutions reporting derivatives 17,039,067 17,123,918 17,562,378 17,673,277 17,982,075 -5.2 492 219,310 1,350,936 4,826,589 10,641,740

Total derivatives 224,647,898 220,468,605 192,875,723 198,385,321 197,421,142 13.8 125 10,659 205,991 4,698,930 219,732,192

Derivative Contracts by Underlying 

Risk Exposure 

Interest rate 164,098,782 160,283,100 139,774,359 141,989,523 142,884,741 14.8 125 10,149 198,435 2,791,496 161,098,578

Foreign exchange* 49,083,326 48,529,675 43,001,986 45,988,455 44,459,158 10.4 0 0 3,051 1,664,046 47,416,230

Equity 5,471,018 5,001,131 4,423,904 4,409,702 4,330,864 26.3 0 30 32 53,963 5,416,993

Commodity & other (excluding credit derivatives) 1,519,658 1,574,689 1,432,977 1,606,776 1,779,436 -14.6 0 0 141 126,787 1,392,730

Credit 4,474,144 5,079,273 4,241,352 4,389,784 3,965,766 12.8 0 40 3,805 62,638 4,407,661

Total 224,646,928 220,467,868 192,874,578 198,384,240 197,419,965 13.8 125 10,219 205,464 4,698,930 219,732,192

Derivative Contracts by Transaction Type 

Swaps 143,242,708 137,729,743 118,597,662 121,132,626 121,285,181 18.1 0 1,653 142,142 3,125,856 139,973,058

Futures & forwards 33,317,054 34,502,393 28,748,693 31,661,060 32,045,336 4.0 0 1,000 9,449 1,117,159 32,189,446

Purchased options 20,127,902 20,067,871 19,695,467 19,118,334 18,596,675 8.2 0 234 20,121 182,195 19,925,352

Written options 20,751,678 20,222,587 19,693,855 18,780,453 18,958,408 9.5 0 983 10,009 162,153 20,578,533

Total 217,439,342 212,522,593 186,735,678 190,692,473 190,885,599 13.9 0 3,870 181,720 4,587,362 212,666,389

Fair Value of Derivative Contracts 

Interest rate contracts 54,259 64,099 72,856 76,860 76,672 -29.2 0 61 1,946 -2,338 54,589

Foreign exchange contracts 9,782 2,918 -14,980 15,025 11,233 -12.9 0 0 1 1,287 8,493

Equity contracts -7,184 -5,957 4,403 16,949 12,308 -158.4 0 0 8 -559 -6,634

Commodity & other (excluding credit derivatives) 1,819 2,790 8,892 18,933 22,615 -92.0 0 0 2 271 1,547

Credit derivatives as guarantor** 15,417 12,909 5,346 -16,373 -18,433 -183.6 0 4 16 -100 15,497

Credit derivatives as beneficiary** -17,352 -14,434 -4,002 23,163 22,643 -176.6 0 0 -3 -483 -16,867

Derivative Contracts by Maturity*** 

 Interest rate contracts < 1 year 112,943,731 109,261,325 92,694,359 97,477,065 96,672,591 16.8 0 1,484 27,789 1,621,997 111,292,461

 1-5 years 29,392,067 30,208,347 27,375,717 26,085,681 26,253,904 12.0 5 2,516 83,241 619,090 28,687,217

 > 5 years 21,500,104 21,259,200 20,667,400 19,919,888 22,979,692 -6.4 0 1,964 66,583 343,076 21,088,482

 Foreign exchange and gold contracts < 1 year 35,713,887 36,896,856 33,156,693 34,753,442 33,883,174 5.4 0 0 1,794 1,533,849 34,178,243

 1-5 years 5,264,822 4,979,588 4,811,621 4,481,609 4,545,526 15.8 0 0 312 103,351 5,161,160

 > 5 years 3,320,695 2,528,186 2,444,283 2,226,842 2,476,418 34.1 0 0 1 6,556 3,314,138

 Equity contracts < 1 year 5,331,649 4,990,234 4,335,420 4,315,354 4,272,177 24.8 0 7 2 23,085 5,308,555

 1-5 years 1,142,298 1,150,946 999,329 1,057,822 911,068 25.4 0 23 4 7,293 1,134,980

 > 5 years 132,964 106,507 98,766 140,485 174,232 -23.7 0 0 0 21,520 111,444

 Commodity & other contracts (including 

 credit derivatives, excluding 

 gold contracts) < 1 year 2,903,697 3,102,480 2,743,038 2,933,679 3,007,398 -3.4 0 2 190 41,902 2,861,603

 1-5 years 3,038,310 3,290,726 2,844,783 2,819,537 2,653,707 14.5 0 14 1,420 64,429 2,972,448

 > 5 years 270,488 487,503 272,418 468,669 680,264 -60.2 0 66 2,269 7,668 260,486

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%) 14.4 13.0 14.9 21.0 17.5 0.0 0.7 2.8 4.7 21.2

Total potential future exposure to tier 1 capital (%) 31.6 32.0 31.8 32.2 35.2 0.0 0.2 0.9 5.2 49.9

Total exposure (credit equivalent amount)

to tier 1 capital (%) 45.9 45.1 46.7 53.2 52.7 0.0 0.9 3.7 9.9 71.1

Credit losses on derivatives  -12.8 -12.5 101.1 106.6 104.6 -112.2 0.0 1.4 1.3 -0.3 -15.1

HELD FOR TRADING

Number of institutions reporting derivatives 153 158 165 173 172 -11.0 0 12 73 56 12

Total assets of institutions reporting derivatives 16,286,963 16,517,738 16,459,085 16,478,700 16,613,157 -2.0 0 7,072 324,457 3,090,110 12,865,324

Total deposits of institutions reporting derivatives 12,811,834 12,895,162 13,224,437 13,290,145 13,518,784 -5.2 0 5,891 266,472 2,473,404 10,066,067

Derivative Contracts by Underlying 

Risk Exposure 

Interest rate 157,949,351 155,617,896 135,502,495 137,555,249 138,592,472 14.0 0 314 43,560 1,263,780 156,641,697

Foreign exchange 45,798,549 45,123,349 40,604,230 42,216,283 41,401,741 10.6 0 0 2,718 1,567,298 44,228,533

Equity 5,417,476 4,948,378 4,375,929 4,363,822 4,283,905 26.5 0 0 0 44,555 5,372,920

Commodity & other 1,476,394 1,532,080 1,391,961 1,565,817 1,737,954 -15.0 0 0 39 119,207 1,357,148

Total 210,641,770 207,221,703 181,874,615 185,701,171 186,016,071 13.2 0 314 46,317 2,994,840 207,600,299

Trading Revenues: Cash & Derivative 

Instruments 

Interest rate**  3,479 5,728 4,623 -1,179 894 289.1 0 0 5 91 3,383

Foreign exchange** 5,173 4,438 1,168 8,156 6,366 -18.7 0 0 2 215 4,956

Equity** 3,995 5,335 3,099 3,308 777 414.2 0 0 4 392 3,600

Commodity & other (including credit derivatives)** 1,027 2,086 785 2,453 2,363 -56.5 0 0 0 57 970

Total trading revenues** 13,674 17,586 9,675 12,739 10,401 31.5 0 0 10 755 12,908

Share of Revenue

Trading revenues to gross revenues (%)** 5.6 7.6 4.8 7.1 6.8 0.0 0.0 0.2 1.7 6.6

Trading revenues to net operating revenues (%)** 27.0 33.5 20.8 27.7 25.6 0.0 0.0 1.0 8.5 31.6

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives 547 546 528 541 553 -1.1 0 104 304 125 14

Total assets of institutions reporting derivatives 20,738,050 20,871,019 20,707,301 20,730,909 20,822,169 -0.4 0 56,282 1,206,930 5,905,913 13,568,926

Total deposits of institutions reporting derivatives 16,387,383 16,454,728 16,786,145 16,882,713 17,089,251 -4.1 0 46,745 983,850 4,715,049 10,641,740

Derivative Contracts by Underlying Risk 

Exposure 

Interest rate 6,123,185 4,642,380 4,252,676 4,412,573 4,267,827 43.5 0 3,527 135,061 1,527,716 4,456,881

Foreign exchange 577,582 563,149 519,396 491,890 513,259 12.5 0 0 209 47,818 529,555

Equity 53,542 52,752 47,975 45,880 46,959 14.0 0 30 31 9,408 44,073

Commodity & other 43,264 42,609 41,016 40,959 41,482 4.3 0 0 102 7,580 35,582

Total notional amount 6,797,573 5,300,890 4,861,062 4,991,302 4,869,528 39.6 0 3,556 135,403 1,592,523 5,066,091

All line items are reported on a quarterly basis. 

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

** Does not include banks filing the FFIEC 051 report form, which was introduced in first quarter 2017.

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

**** Credit losses on derivatives is applicable to all banks filing the FFIEC 031 report form and banks filing the FFIEC 041 report form that have $300 million or more in total assets, 

but is not applicable to banks filing the FFIEC 051 form. N/M - Not Meaningful 

 
QUARTERLY 2023 VOLUME 17, NUMBER 3

17 

TABLE VII-A. Servicing, Securitization, and Asset Sales Activities (All FDIC-Insured Call Report Filers)*

(dollar figures in millions)

2nd 

Quarter

2023

1st 

Quarter

2023

4th 

Quarter

2022

3rd 

Quarter

2022

2nd 

Quarter

2022

%

Change

22Q2-

23Q2

Asset Size Distribution

Less 

Than

$100 

Million

$100 

Million

to $1 

Billion

$1 

Billion

to $10 

Billion

$10 

Billion to

$250 

Billion

Greater 

Than

$250 

Billion

Assets Securitized and Sold with Servicing Retained or with 

Recourse or Other Seller-Provided Credit Enhancements 

Number of institutions reporting securitization activities 61 62 63 64 64 -4.7 0 4 11 36 10

Outstanding Principal Balance by Asset Type** 

 1-4 family residential loans $251,654 $254,891 $257,043 $270,421 $278,414 -9.6 $0 $4,864 $11,865 $60,704 $174,220

 Home equity loans 4 4 5 5 6 -33.3 0 0 0 4 0

 Credit card receivables 130 118 103 76 39 233.3 0 0 0 130 0

 Auto loans 1,336 1,237 1,102 541 59 2,164.4 0 0 0 974 362

 Other consumer loans 1,545 1,654 1,202 1,277 1,347 14.7 0 0 0 613 932

 Commercial and industrial loans 4,648 4,703 4,988 4,626 5,265 -11.7 0 0 0 0 4,648

 All other loans, leases, and other assets 111,473 109,531 110,712 113,555 114,372 -2.5 0 0 2,412 11,708 97,354

Total securitized and sold 370,790 372,138 375,155 390,501 399,502 -7.2 0 4,864 14,277 74,133 277,516

Maximum Credit Exposure by Asset Type** 

 1-4 family residential loans 874 648 633 650 726 20.4 0 0 0 385 489

 Home equity loans 0 0 0 0 0 0.0 0 0 0 0 0

 Credit card receivables 0 0 0 0 0 0.0 0 0 0 0 0

 Auto loans 12 12 19 19 0 0.0 0 0 0 0 12

 Other consumer loans 0 0 0 0 0 0.0 0 0 0 0 0

 Commercial and industrial loans 210 207 219 203 226 -7.1 0 0 0 0 210

 All other loans, leases, and other assets 2,767 2,783 2,790 2,975 2,525 9.6 0 0 63 342 2,363

Total credit exposure 3,863 3,650 3,661 3,847 3,477 11.1 0 0 63 727 3,074

Total unused liquidity commitments provided to 

institution’s own securitizations 229 251 236 210 187 22.5 0 0 0 0 229

Securitized Loans, Leases, and Other Assets 30-89 Days 

Past Due (%)** 

 1-4 family residential loans 2.7 2.3 2.9 2.5 2.4 0.0 1.8 2.5 2.8 2.7

 Home equity loans 6.3 7.1 5.5 3.4 9.3 0.0 0.0 0.0 6.3 0.0

 Credit card receivables 6.2 5.1 5.8 3.9 2.6 0.0 0.0 0.0 6.2 0.0

 Auto loans 4.5 2.1 1.2 0.4 0.0 0.0 0.0 0.0 5.9 0.8

 Other consumer loans 2.2 2.1 3.3 3.1 2.9 0.0 0.0 0.0 1.3 2.8

 Commercial and industrial loans 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

 All other loans, leases, and other assets 0.5 0.6 0.3 0.3 0.3 0.0 0.0 0.5 2.1 0.4

Total loans, leases, and other assets 2.0 1.7 2.0 1.8 1.8 0.0 0.0 0.0 3.1 1.9

Securitized Loans, Leases, and Other Assets 

90 Days or More Past Due (%)** 

 1-4 family residential loans 0.8 0.8 0.8 1.0 1.1 0.0 1.0 1.0 1.8 0.4

 Home equity loans 27.0 28.6 28.1 27.5 26.0 0.0 0.0 0.0 27.0 0.0

 Credit card receivables 6.2 6.8 5.8 2.6 0.0 0.0 0.0 0.0 6.2 0.0

 Auto loans 0.3 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.4 0.0

 Other consumer loans 1.5 1.7 2.8 2.8 2.5 0.0 0.0 0.0 0.7 2.0

 Commercial and industrial loans 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

 All other loans, leases, and other assets 0.9 0.6 0.6 0.9 0.7 0.0 0.0 0.8 0.7 0.9

Total loans, leases, and other assets 0.6 0.5 0.5 0.8 0.9 0.0 0.0 0.0 0.9 0.6

Securitized Loans, Leases, and Other Assets 

Charged-Off (net, YTD, annualized, %)** 

 1-4 family residential loans 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

 Home equity loans 1.2 0.1 4.0 2.1 2.3 0.0 0.0 0.0 1.2 0.0

 Credit card receivables 10.0 4.2 1.9 0.0 0.0 0.0 0.0 0.0 10.0 0.0

 Auto loans 0.4 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.6 0.0

 Other consumer loans 0.8 0.4 0.6 0.4 0.3 0.0 0.0 0.0 0.6 0.9

 Commercial and industrial loans 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

 All other loans, leases, and other assets 0.1 0.1 0.2 0.1 0.1 0.0 0.0 0.0 0.8 0.1

Total loans, leases, and other assets 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0

Seller’s Interests in Institution’s Own Securitizations 

- Carried as Securities or Loans***

 Home equity loans 0 0 0 0 0 0.0 0 0 0 0 0

 Credit card receivables 0 0 0 0 0 0.0 0 0 0 0 0

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

Assets Sold with Recourse and Not Securitized 

Number of institutions reporting asset sales 307 307 311 316 308 -0.3 3 92 139 63 10

Outstanding Principal Balance by Asset Type 

 1-4 family residential loans 20,352 20,297 24,182 27,018 27,429 -25.8 19 2,706 8,861 7,660 1,105

 All other loans, leases, and other assets 146,945 144,741 144,016 142,239 141,862 3.6 0 31 136 41,553 105,225

Total sold and not securitized 167,297 165,038 168,198 169,257 169,291 -1.2 19 2,737 8,997 49,214 106,331

Maximum Credit Exposure by Asset Type 

 1-4 family residential loans 6,487 6,349 8,620 9,015 9,893 -34.4 1 260 2,766 2,779 682

 All other loans, leases, and other assets 43,182 41,996 41,742 41,221 41,203 4.8 0 30 392 12,869 29,891

Total credit exposure 49,669 48,344 50,362 50,235 51,095 -2.8 1 290 3,158 15,648 30,572

Support for Securitization Facilities Sponsored by 

Other Institutions 

Number of institutions reporting securitization facilities 

sponsored by others 33 34 36 36 36 -8.3 0 11 11 4 7

Total credit exposure 19,524 20,213 20,092 21,922 22,526 -13.3 0 0 0 0 19,524

Total unused liquidity commitments 2,722 3,049 3,165 3,576 1,995 36.4 0 0 0 295 2,427

Other

Assets serviced for others  6,238,594 6,226,181 6,329,175 6,178,078 6,111,536 2.1 2,560 208,279 417,395 1,449,693 4,160,667

Asset-backed commercial paper conduits 

 Credit exposure to conduits sponsored by institutions 

 and others 4,920 4,090 4,128 3,803 5,836 -15.7 0 0 0 28 4,892

 Unused liquidity commitments to conduits 

 sponsored by institutions and others 69,682 59,759 60,714 59,659 61,747 12.9 0 0 0 33 69,649

Net servicing income (for the quarter) 2,392 1,755 1,412 3,224 3,489 -31.4 6 117 481 799 990

Net securitization income (for the quarter) 30 29 38 -11 -2 N/M 0 1 4 9 16

Total credit exposure to Tier 1 capital (%)** *** 3.2 3.2 3.1 3.3 3.3 -3.0 0.0 0.0 0.1 2.3 4.7

* Does not include banks filing the FFIEC 051 report form, which was introduced in first quarter 2017. 

** Beginning in June 2018, for banks that file the FFIEC 041 report form, all other loans include home equity loans, credit card receivables, auto loans, other consumer loans, and 

commercial and industrial loans.

*** Beginning in June 2018, only includes banks that file the FFIEC 031 report form.

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

** *** Total credit exposure includes the sum of the three line items titled “Total credit exposure” reported above. N/M- Not Meaningful
PAGE INTENTIONALLY LEFT BLANK
QUARTERLY 2023 VOLUME 17, NUMBER 3

19 

COMMUNITY BANK PERFORMANCE

Community banks are identified based on criteria defined in the FDIC’s 2012 Community Banking Study. When 

comparing community bank performance across quarters, prior-quarter dollar amounts are based on community 

banks designated as such in the current quarter, adjusted for mergers. In contrast, prior-quarter ratios are based on 

community banks designated during the previous quarter.

Net Income Increased Quarter Over Quarter 

The Net Interest Margin Declined for the Second Straight Quarter 

Unrealized Losses on Securities Increased Quarter Over Quarter

Loan Growth Continued and Was Broad-Based Across Most Portfolio Segments 

Total Deposits Were Flat Quarter Over Quarter 

Asset Quality Remained Favorable Overall

NET INCOME INCREASED FROM 

FIRST QUARTER

Net income for the 4,198 community banks rose $236.2 million (3.4 

percent) from one quarter ago to $7.1 billion in second quarter 2023. 

Higher noninterest income and lower losses on the sale of securities 

exceeded lower net interest income and higher noninterest expense. 

Less than half (42.5 percent) of all community banks reported higher 

net income compared with first quarter 2023. The share of unprofitable 

community banks rose slightly to 5.1 percent. The pretax return on 

assets (ROA) ratio rose 1 basis point from one quarter ago to 1.28 

percent. 

Net income increased $50.6 million (0.7 percent) from second quarter 

2022, driven by higher net interest income that was largely offset by 

higher noninterest expense. Pretax ROA fell 7 basis points from the 

year-ago quarter.

Chart 1

Contributors to the Year-Over-Year Change in Income

FDIC-Insured Community Banks

$ Billions

Source: FDIC.

Net

Income

Net

Interest

Income

Loan Loss

Provisions

Noninterest

Income

Noninterest

Expense

Realized

Gains on

Securities

Income

Taxes

Positive Factor Negative Factor

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

7% 42% -3% 8% -78% -3%

$0.05 $1.31 $0.23 -$0.14 $1.24 $0.31 -$0.04

1%

Chart 2

Source: FDIC.

Percent

Net Interest Margin

Industry (3.28)

Community Banks (3.39)

2.25

2.50

2.75

3.00

3.25

3.50

3.75

4.00

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
QUARTERLY 2023 VOLUME 17, NUMBER 3

20 

THE NET INTEREST MARGIN 

DECLINED FOR THE SECOND 

STRAIGHT QUARTER

Following a decline of 22 basis points in the first quarter, the 

community bank NIM declined 10 basis points in the second quarter. 

The NIM increased 5 basis points from the year-ago quarter. The 

quarterly decrease in the NIM was due mainly to the increase in cost of 

deposits outpacing the increase in yield on loans. The yield on earning 

assets rose 27 basis points quarter over quarter and 136 basis points 

year over year, while cost of funds rose 37 basis points quarter over 

quarter and 131 basis points year over year.

NET OPERATING REVENUE 

INCREASED QUARTER OVER 

QUARTER ON HIGHER NONINTEREST 

INCOME

Community bank net operating revenue (net interest income plus 

noninterest income) increased $97.5 million (0.4 percent) from first 

quarter 2023. Higher interest expense, mainly on domestic deposits, drove 

the quarterly decline in net interest income. Noninterest income increased 

$428.4 million (9.2 percent) from the prior quarter due to higher net gains 

on sales of other assets, “all other noninterest income,” and net gains on 

loan sales.1 More than 56 percent of community banks reported lower net 

interest income in the second quarter.

From the year-ago quarter, a $1.3 billion increase in net interest income 

was only partially offset by a $140.1 million decline in noninterest income, 

resulting in a $1.2 billion (4.6 percent) increase in net operating revenue. 

Higher interest income on loans secured by farmland and nonfarm, 

nonresidential commercial real estate (CRE) and 1–4 family residential real 

estate loans drove the annual growth in net interest income, while lower 

net gains on loan sales drove the annual decline in noninterest income.

1“All other noninterest income” includes material write-in items as well as income related to wire transfers and ATM fees, bank card and credit card interchange fees, safe 

deposit box rent, printing and sale of checks, earnings on/increase in value of cash surrender value of life insurance, and other noninterest sources.

Chart 3

Change in Loan Balances and Unused Commitments 

FDIC-Insured Community Banks

Source: FDIC. Loan Balances

Unused

Commitments

Nonfarm

Nonresidential

RE

Commercial

& Industrial

1–4 Family

Residential

RE

Construction &

Development

Farm

Loans

Commercial RE

& Construction

Commercial

& Industrial

Change 2Q 2023 vs. 2Q 2022

Change 2Q 2023 vs. 1Q 2023

-10

 0

10

20

30

40

50

60

70

$ Billions

57.0

17.3

57.3

23.2

9.5

-3.1

8.0 10.3

5.1

13.7

2.5 5.3

-2.5

-0.1

Chart 4

Source: FDIC.

Share of Loan Portfolio Noncurrent

Percent

Noncurrent Loan Rates for FDIC-Insured Community Banks

C&D Loans

Nonfarm Nonresidential RE

1–4 Family RE

C&I Loans

Farm Loans

Home Equity

0

2

4

6

8

10

12

14

16

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
QUARTERLY 2023 VOLUME 17, NUMBER 3

21 

NONINTEREST EXPENSE INCREASED 

QUARTER OVER QUARTER AND YEAR 

OVER YEAR

Noninterest expense of $17.0 billion was $245.4 million (1.5 percent) 

higher than a quarter ago and $1.2 billion (7.8 percent) higher than 

a year ago. The quarterly increase was attributed to “all other 

noninterest expense,” while the annual increase was attributed to 

“all other noninterest expense” and salaries and benefits expense.2

Noninterest expense as a share of average assets rose 3 basis points 

to 2.52 percent from one quarter ago as the increase in noninterest 

expense outpaced the increase in average assets. The community 

bank efficiency ratio (noninterest expense as a share of net operating 

revenue) rose 95 basis points from one quarter ago to 63.8 percent, 

as the increase in noninterest expense outpaced the increase in net 

operating revenue. The higher efficiency ratio indicates that banks 

were less efficient at generating revenue.

PROVISION EXPENSE INCREASED 

MODESTLY FROM THE PRIOR 

QUARTER

Quarterly provision expense of $779.5 million was $23.6 million (3.1 

percent) higher than one quarter ago and $232.0 million higher than 

one year ago.3 As of second quarter 2023, only 169 community banks 

had not yet adopted current expected credit loss (CECL) accounting. 

The reserve coverage ratio (the ratio of the allowance for credit losses 

to noncurrent loans) decreased 13.4 percentage points from the 

previous quarter, but increased 15.6 percentage points from the yearago quarter to 259.6 percent. The reserve coverage ratio for community 

banks was 38.4 percentage points above the reserve coverage ratio for 

noncommunity banks.

COMMUNITY BANK ASSETS ROSE ON 

STRONGER QUARTERLY LOAN 

GROWTH

Total assets increased $23.6 billion (0.9 percent) from first quarter 

2023 and $123.4 billion (4.8 percent) from the previous year. Growth 

in total loans and leases rose from the prior quarter, increasing $47.1 

billion (2.6 percent) in second quarter 2023 compared with $32.1 billion 

(1.8 percent) in first quarter 2023. Total loans and leases grew $206.0 

billion (12.5 percent) from one year ago. The balance of securities fell 

$18.4 billion (3.1 percent) from first quarter 2023 and $45.1 billion (7.4 

percent) from one year ago. Cash and balances due from depository 

institutions declined $8.1 billion (4.7 percent) from the previous 

quarter and $45.4 billion (21.8 percent) from the previous year.

2“All other noninterest expense” includes material write-in items as well as expense related to data processing, advertising and marketing, legal fees, and consulting and 

advisory fees.

3

 Provisions for credit losses include both losses for loans and securities for CECL adopters but only loan losses for non-adopters. 
QUARTERLY 2023 VOLUME 17, NUMBER 3

22 

UNREALIZED LOSSES ON SECURITIES 

INCREASED QUARTER OVER 

QUARTER4

Unrealized losses on securities totaled $64.4 billion in the second 

quarter, up $5.5 billion (9.3 percent) from the prior quarter. Unrealized 

losses on held-to-maturity securities totaled $10.4 billion in second 

quarter 2023, while unrealized losses on available-for-sale securities 

totaled $54.0 billion.

LOAN GROWTH WAS STEADY AND 

BROAD-BASED

Total loan and lease balances in all major portfolios increased from one 

quarter ago. The majority of community banks (81.1 percent) reported 

quarterly loan growth. Growth in 1–4 family residential real estate loan 

balances ($13.7 billion, or 3.2 percent) and nonfarm, nonresidential CRE 

loan balances ($10.3 billion, or 1.8 percent) drove the quarterly increase.

Loan balances in all major portfolios also grew from one year ago, and 

89.9 percent of community banks reported annual loan growth. Growth 

in 1–4 family residential real estate loan balances ($57.3 billion, or 14.9 

percent) and nonfarm, nonresidential CRE loan balances ($57.0 billion, 

or 11.2 percent) drove the annual increase.

DEPOSITS WERE FLAT FROM THE 

PREVIOUS QUARTER

Community banks reported a slight decline in total deposits of 0.1 

percent ($1.5 billion) during second quarter 2023, down from growth 

of 0.5 percent reported in first quarter 2023. More than half of all 

community banks (60.3 percent) reported a decrease in deposit 

balances from the prior quarter. Growth in insured deposit accounts 

($13.5 billion, 0.9 percent) was offset by a decline in uninsured balances 

($14.2 billion, 2.1 percent). In the second quarter, growth in interestbearing deposit balances ($16.1 billion, or 1.0 percent) was offset by 

a decline in noninterest-bearing deposits ($17.6 billion, 3.1 percent). 

Total deposits rose 1.0 percent ($22.5 billion) from one year ago.

Wholesale funds increased $39.0 billion (6.8 percent) in the quarter.5

This increase largely consisted of growth in total borrowings of $19.2 

billion (15.5 percent) and reciprocal deposits (net of brokered) of $16.4 

billion (19.6 percent) from one quarter ago. The share of wholesale 

funds to total assets was 22.6 percent in second quarter, up from 21.1 

percent in first quarter 2023.

4Unrealized losses on securities reflect the difference between the market value as of quarter end and the book value of non-equity securities. 

5 Wholesale funding includes federal funds purchased and securities sold under agreement to repurchase, Federal Home Loan Bank and other borrowings, brokered and reciprocal 

deposits, listing service deposits, municipal and state deposits, and foreign deposits (which are not FDIC insured).
QUARTERLY 2023 VOLUME 17, NUMBER 3

23 

THE NONCURRENT LOAN RATE 

INCREASED SLIGHTLY FROM THE 

PRIOR QUARTER

The share of loans and leases 90 days or more past due or in nonaccrual 

status increased 2 basis points from first quarter 2023 to 0.47 percent. 

Slightly less than half of community banks (45.8 percent) reported 

quarter-over-quarter reductions in noncurrent loan balances. 

Noncurrent loan balances for most of the major portfolios increased 

from one quarter ago.

THE NET CHARGE-OFF RATE 

REMAINED UNCHANGED

The community bank net charge-off rate remained unchanged from 

one quarter ago but increased 5 basis points from one year ago to 0.09 

percent. This ratio remains low compared to the average rate of the 

past decade. In addition, most annual increases in charge-off rates 

occurred in relatively small loan portfolio segments. The net chargeoff rate for consumer loans (which account for 4.7 percent of total loan 

balances) increased 41 basis points from one year ago to 1.06 percent.

CAPITAL RATIOS REMAINED STABLE The tier one risk-based capital ratio for community banks that did 

not file the community bank leverage ratio (CBLR) was 13.74 percent, 

up 3 basis points from the prior quarter, as reductions in higher riskweighted assets outpaced tier 1 capital declines. The average CBLR for 

the 1,632 community banks that elected to use the CBLR framework 

was 12.06 percent, up 13 basis points from first quarter 2023. The 

leverage capital ratio for community banks increased 12 basis points to 

10.68 percent in second quarter 2023.

NO COMMUNITY BANKS OPENED OR 

FAILED IN SECOND QUARTER 2023

The number of community banks declined to 4,198 in the second 

quarter, down 32 from the previous quarter. No community 

banks opened or failed, several transitioned from community to 

noncommunity banks or vice versa, and 24 merged out of existence 

during the quarter.

Author:

Dorothy G. Miranda

Senior Financial Analyst

Division of Insurance and Research
PAGE INTENTIONALLY LEFT BLANK
QUARTERLY 2023 VOLUME 17, NUMBER 3

25 

Table I-B. Selected Indicators, FDIC-Insured Community Banks

2023* 2022* 2022 2021 2020 2019 2018

Return on assets (%) 1.05 1.07 1.15 1.26 1.09 1.20 1.19

Return on equity (%) 11.12 10.84 12.00 11.70 9.72 10.24 10.51

Core capital (leverage) ratio (%) 10.68 10.30 10.50 10.16 10.32 11.14 11.13

Noncurrent assets plus other real estate owned to assets (%) 0.36 0.37 0.33 0.40 0.60 0.65 0.71

Net charge-offs to loans (%) 0.09 0.04 0.07 0.07 0.12 0.13 0.12

Asset growth rate (%) -1.63 3.29 -1.62 8.86 12.15 2.55 0.23

Net interest margin (%) 3.44 3.23 3.45 3.28 3.39 3.66 3.73

Net operating income growth (%) -3.66 -6.89 -3.77 29.70 -2.07 0.13 25.30

Number of institutions reporting 4,198 4,328 4,258 4,386 4,556 4,750 4,978

Percentage of unprofitable institutions (%) 4.14 4.94 3.57 3.26 4.52 3.96 3.66

* Through June 30, ratios annualized where appropriate. Asset growth rates are for 12 months ending June 30.
QUARTERLY 2023 VOLUME 17, NUMBER 3

26 

Table II-B. Aggregate Condition and Income Data, FDIC-Insured Community Banks

(dollar figures in millions)

2nd Quarter

2023

1st Quarter 

2023

2nd Quarter 

2022

% Change

22Q2-23Q2

Number of institutions reporting 4,198 4,230 4,328 -3.0

Total employees (full-time equivalent) 373,279 372,883 387,196 -3.6

CONDITION DATA

Total assets $2,713,202 $2,715,072 $2,758,087 -1.6

 Loans secured by real estate 1,430,459 1,416,364 1,362,302 5.0

 1-4 Family residential mortgages 441,928 431,164 412,653 7.1

 Nonfarm nonresidential 568,195 567,723 551,964 2.9

 Construction and development 152,765 152,450 141,343 8.1

 Home equity lines 44,422 43,460 42,097 5.5

 Commercial & industrial loans 239,791 237,324 239,910 -0.0

 Loans to individuals 87,854 83,770 76,585 14.7

 Credit cards 2,882 2,721 2,621 10.0

 Farm loans 47,346 43,409 44,480 6.4

 Other loans & leases 49,456 47,004 50,884 -2.8

 Less: Unearned income 751 686 712 5.5

 Total loans & leases 1,854,156 1,827,186 1,773,450 4.6

 Less: Reserve for losses* 22,666 22,565 22,118 2.5

 Net loans and leases 1,831,491 1,804,621 1,751,333 4.6

 Securities** 564,829 586,168 628,958 -10.2

 Other real estate owned 789 784 953 -17.2

 Goodwill and other intangibles 17,900 18,058 19,783 -9.5

 All other assets 298,193 305,442 357,061 -16.5

Total liabilities and capital 2,713,202 2,715,072 2,758,087 -1.6

 Deposits 2,263,366 2,287,433 2,383,601 -5.0

 Domestic office deposits 2,262,571 2,286,708 2,380,478 -5.0

 Foreign office deposits 795 726 3,123 -74.5

 Brokered deposits 112,290 105,959 60,913 84.3

 Estimated insured deposits 1,597,938 1,601,662 1,590,625 0.5

 Other borrowed funds 164,577 144,155 91,360 80.1

 Subordinated debt 315 315 368 -14.4

 All other liabilities 27,291 25,636 23,264 17.3

 Total equity capital (includes minority interests) 257,653 257,532 259,490 -0.7

 Bank equity capital 257,540 257,406 259,355 -0.7

Loans and leases 30-89 days past due 6,220 6,740 5,484 13.4

Noncurrent loans and leases 8,732 8,268 9,068 -3.7

Restructured loans and leases 2,654 2,617 4,309 -38.4

Mortgage-backed securities 230,212 238,856 266,219 -13.5

Earning assets 2,537,324 2,543,863 2,582,718 -1.8

FHLB Advances 116,750 109,368 65,461 78.4

Unused loan commitments 417,560 422,376 436,827 -4.4

Trust assets 347,667 301,038 401,058 -13.3

Assets securitized and sold 26,144 25,473 29,834 -12.4

Notional amount of derivatives 123,646 112,999 125,179 -1.2

INCOME DATA

First Half

2023

First Half

2022 % Change

2nd Quarter 

2023

2nd Quarter 

2022

% Change 

22Q2-23Q2

Total interest income $60,803 $44,676 36.1 $31,464 $23,276 35.2

Total interest expense 17,643 3,324 430.8 10,044 1,776 465.5

 Net interest income 43,159 41,353 4.4 21,420 21,499 -0.4

Provision for credit losses*** 1,535 901 70.3 779 599 30.1

Total noninterest income 9,689 11,129 -12.9 5,060 5,528 -8.5

Total noninterest expense 33,722 33,159 1.7 16,989 16,713 1.7

Securities gains (losses) -524 -538 -2.4 -85 -430 -80.2

Applicable income taxes 3,008 3,211 -6.3 1,475 1,666 -11.5

Extraordinary gains, net**** 4 1 N/M -0 1 N/M

 Total net income (includes minority interests) 14,064 14,674 -4.2 7,151 7,620 -6.2

 Bank net income 14,060 14,666 -4.1 7,148 7,615 -6.1

Net charge-offs 839 327 156.7 421 194 116.8

Cash dividends 6,136 6,160 -0.4 3,330 3,194 4.3

Retained earnings 7,924 8,506 -6.8 3,818 4,422 -13.7

 Net operating income 14,558 15,111 -3.7 7,235 7,964 -9.2

* For institutions that have adopted ASU 2016-13, this item represents the allowance for credit losses on loans and leases held for investment and allocated transfer risk.

** For institutions that have adopted ASU 2016-13, securities are reported net of allowances for credit losses.

*** For institutions that have adopted ASU 2016-13, this item represents provisions for credit losses on a consolidated basis; for institutions that have not adopted ASU 2016-13, 

this item represents the provision for loan and lease losses.

**** See Notes to Users for explanation. N/M - Not Meaningful
QUARTERLY 2023 VOLUME 17, NUMBER 3

27 

Table II-B. Aggregate Condition and Income Data, FDIC-Insured Community Banks 

Prior Periods Adjusted for Mergers

(dollar figures in millions)

2nd Quarter 

2023

1st Quarter 

2023

2nd Quarter 

2022

% Change 

22Q2-23Q2

Number of institutions reporting 4,198 4,198 4,191 0.2

Total employees (full-time equivalent) 373,279 370,258 369,932 0.9

CONDITION DATA

Total assets $2,713,202 $2,689,631 $2,589,830 4.8

 Loans secured by real estate 1,430,459 1,398,518 1,263,768 13.2

 1-4 Family residential mortgages 441,928 428,217 384,603 14.9

 Nonfarm nonresidential 568,195 557,894 511,190 11.2

 Construction and development 152,765 150,302 129,571 17.9

 Home equity lines 44,422 43,178 39,295 13.0

 Commercial & industrial loans 239,791 234,709 222,538 7.8

 Loans to individuals 87,854 82,995 71,129 23.5

 Credit cards 2,882 2,716 2,400 20.1

 Farm loans 47,346 43,257 43,613 8.6

 Other loans & leases 49,456 48,297 47,694 3.7

 Less: Unearned income 751 686 636 18.1

 Total loans & leases 1,854,156 1,807,089 1,648,107 12.5

 Less: Reserve for losses* 22,666 22,294 20,743 9.3

 Net loans and leases 1,831,491 1,784,795 1,627,364 12.5

 Securities** 564,829 583,185 609,950 -7.4

 Other real estate owned 789 776 902 -12.5

 Goodwill and other intangibles 17,900 17,813 16,885 6.0

 All other assets 298,193 303,062 334,729 -10.9

Total liabilities and capital 2,713,202 2,689,631 2,589,830 4.8

 Deposits 2,263,366 2,264,850 2,240,915 1.0

 Domestic office deposits 2,262,571 2,264,124 2,240,167 1.0

 Foreign office deposits 795 726 747 6.4

 Brokered deposits 112,290 103,567 48,834 129.9

 Estimated insured deposits 1,597,938 1,584,439 1,496,397 6.8

 Other borrowed funds 164,577 143,146 84,886 93.9

 Subordinated debt 315 315 330 -4.5

 All other liabilities 27,291 25,396 21,049 29.7

 Total equity capital (includes minority interests) 257,653 255,924 242,646 6.2

 Bank equity capital 257,540 255,798 242,521 6.2

Loans and leases 30-89 days past due 6,220 6,653 5,210 19.4

Noncurrent loans and leases 8,732 8,154 8,269 5.6

Restructured loans and leases 2,654 2,544 4,077 -34.9

Mortgage-backed securities 230,212 237,777 254,143 -9.4

Earning assets 2,537,324 2,519,460 2,426,489 4.6

FHLB Advances 116,750 107,547 58,793 98.6

Unused loan commitments 417,560 422,920 409,523 2.0

Trust assets 347,667 307,058 319,963 8.7

Assets securitized and sold 26,144 25,473 24,919 4.9

Notional amount of derivatives 123,646 111,600 106,109 16.5

INCOME DATA

First Half 

2023

First Half

2022 % Change

2nd Quarter 

2023

2nd Quarter 

 2022

% Change 

22Q2-23Q2

Total interest income $60,803 $41,738 45.7 $31,464 $21,740 44.7

Total interest expense 17,643 3,075 473.8 10,044 1,632 515.6

 Net interest income 43,159 38,663 11.6 21,420 20,108 6.5

Provision for credit losses*** 1,535 830 85.0 779 548 42.4

Total noninterest income 9,689 10,380 -6.7 5,060 5,200 -2.7

Total noninterest expense 33,722 31,147 8.3 16,989 15,753 7.8

Securities gains (losses) -524 -545 -3.8 -85 -392 -78.3

Applicable income taxes 3,008 2,911 3.3 1,475 1,514 -2.6

Extraordinary gains, net**** 4 1 N/M -0 1 N/M

 Total net income (includes minority interests) 14,064 13,610 3.3 7,151 7,102 0.7

 Bank net income 14,060 13,603 3.4 7,148 7,098 0.7

Net charge-offs 839 298 182.1 421 177 137.6

Cash dividends 6,136 5,788 6.0 3,330 3,001 11.0

Retained earnings 7,924 7,815 1.4 3,818 4,097 -6.8

 Net operating income 14,558 14,052 3.6 7,235 7,416 -2.4

* For institutions that have adopted ASU 2016-13, this item represents the allowance for credit losses on loans and leases held for investment and allocated transfer risk.

** For institutions that have adopted ASU 2016-13, securities are reported net of allowances for credit losses.

*** For institutions that have adopted ASU 2016-13, this item represents provisions for credit losses on a consolidated basis; for institutions that have not adopted ASU 2016-13, 

this item represents the provision for loan and lease losses.

**** See Notes to Users for explanation. N/M - Not Meaningful
QUARTERLY 2023 VOLUME 17, NUMBER 3

28 

Table III-B. Aggregate Condition and Income Data by Geographic Region, FDIC-Insured Community Banks

Second Quarter 2023

(dollar figures in millions) All Community 

Banks

Geographic Regions*

New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting 4,198 455 473 921 1,143 950 256

Total employees (full-time equivalent) 373,279 72,225 38,893 78,196 71,732 82,118 30,115

CONDITION DATA

Total assets $2,713,202 $634,037 $286,284 $511,305 $501,937 $525,552 $254,087

 Loans secured by real estate 1,430,459 377,245 151,342 263,303 248,342 265,140 125,087

 1-4 Family residential mortgages 441,928 142,864 45,522 76,814 71,610 77,703 27,414

 Nonfarm nonresidential 568,195 137,358 69,135 102,986 86,239 110,415 62,061

 Construction and development 152,765 26,302 18,361 24,422 27,381 45,319 10,979

 Home equity lines 44,422 11,071 5,858 10,982 5,825 5,503 5,184

 Commercial & industrial loans 239,791 47,390 23,270 51,947 52,295 47,228 17,661

 Loans to individuals 87,854 17,630 7,583 13,908 13,966 13,637 21,131

 Credit cards 2,882 407 117 189 1,041 249 880

 Farm loans 47,346 507 1,440 7,630 27,123 7,939 2,707

 Other loans & leases 49,456 14,593 3,057 12,991 8,028 7,671 3,116

 Less: Unearned income 751 127 98 73 131 189 133

 Total loans & leases 1,854,156 457,238 186,595 349,706 349,622 341,426 169,569

 Less: Reserve for losses** 22,666 4,682 2,288 4,332 4,515 4,486 2,363

 Net loans and leases 1,831,491 452,555 184,306 345,375 345,107 336,941 167,206

 Securities*** 564,829 110,562 63,238 110,822 106,302 121,333 52,571

 Other real estate owned 789 187 100 125 180 161 36

 Goodwill and other intangibles 17,900 4,450 783 4,488 3,501 3,518 1,161

 All other assets 298,193 66,282 37,856 50,496 46,846 63,599 33,113

Total liabilities and capital 2,713,202 634,037 286,284 511,305 501,937 525,552 254,087

 Deposits 2,263,366 515,331 247,754 426,574 416,362 448,998 208,347

 Domestic office deposits 2,262,571 514,561 247,753 426,574 416,362 448,998 208,323

 Foreign office deposits 795 770 1 0 0 0 24

 Brokered deposits 112,290 34,158 11,874 21,770 18,707 15,139 10,642

 Estimated insured deposits 1,597,938 365,157 168,181 312,979 311,078 301,147 139,397

 Other borrowed funds 164,577 46,982 10,642 32,484 35,352 23,252 15,865

 Subordinated debt 315 148 0 16 1 139 10

 All other liabilities 27,291 8,512 2,596 4,600 4,279 4,012 3,292

 Total equity capital (includes minority interests) 257,653 63,064 25,292 47,631 45,943 49,151 26,572

 Bank equity capital 257,540 63,051 25,294 47,540 45,942 49,142 26,572

Loans and leases 30-89 days past due 6,220 1,326 592 1,026 1,227 1,619 430

Noncurrent loans and leases 8,732 2,398 703 1,686 1,353 1,848 744

Restructured loans and leases 2,654 663 230 692 464 466 138

Mortgage-backed securities 230,212 56,898 28,792 41,054 34,811 44,412 24,244

Earning assets 2,537,324 592,328 268,288 476,747 470,182 490,570 239,209

FHLB Advances 116,750 37,838 7,949 24,636 24,131 14,514 7,682

Unused loan commitments 417,560 93,716 37,890 82,991 90,148 75,537 37,279

Trust assets 347,667 72,388 13,585 71,769 134,155 44,676 11,093

Assets securitized and sold 26,144 11,152 10 3,815 5,969 4,647 553

Notional amount of derivatives 123,646 47,969 14,277 16,765 26,215 8,683 9,737

INCOME DATA

Total interest income $31,464 $7,066 $3,363 $5,777 $5,717 $6,385 $3,156

Total interest expense 10,044 2,577 1,004 1,827 1,931 1,846 859

 Net interest income 21,420 4,489 2,359 3,950 3,787 4,539 2,297

Provision for credit losses  779 163 87 117 135 148 129

Total noninterest income 5,060 1,019 467 1,132 965 960 516

Total noninterest expense 16,989 3,738 1,770 3,135 3,065 3,424 1,856

Securities gains (losses) -85 30 -4 -76 -12 -14 -8

Applicable income taxes 1,475 363 176 308 209 232 187

Extraordinary gains, net** *** -0 0 -0 0 -0 0 0

 Total net income (includes minority interests) 7,151 1,274 787 1,446 1,332 1,681 631

 Bank net income 7,148 1,273 788 1,445 1,332 1,680 631

Net charge-offs 421 111 36 43 66 89 76

Cash dividends 3,330 833 172 755 616 715 239

Retained earnings 3,818 440 615 690 715 965 393

 Net operating income 7,235 1,247 790 1,520 1,342 1,694 641

* See Table V-A for explanation.

** For institutions that have adopted ASU 2016-13, this item represents the allowance for credit losses on loans and leases held for investment and allocated transfer risk.

*** For institutions that have adopted ASU 2016-13, securities are reported net of allowances for credit losses.

  For institutions that have adopted ASU 2016-13, this item represents provisions for credit losses on a consolidated basis; for institutions that have not adopted ASU 2016-13, 

this item represents the provision for loan and lease losses.

** *** See Notes to Users for explanation.
QUARTERLY 2023 VOLUME 17, NUMBER 3

29 

Table IV-B. Second Quarter 2023, FDIC-Insured Community Banks

Performance ratios (annualized, %)

All Community Banks Second Quarter 2023, Geographic Regions*

2nd Quarter 

 2023

1st Quarter 

2023 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.98 4.71 4.78 5.03 4.88 4.89 5.22 5.31

Cost of funding earning assets 1.59 1.22 1.74 1.50 1.54 1.65 1.51 1.45

 Net interest margin 3.39 3.49 3.03 3.53 3.34 3.24 3.71 3.87

Noninterest income to assets 0.75 0.68 0.64 0.66 0.89 0.77 0.73 0.82

Noninterest expense to assets 2.52 2.49 2.36 2.48 2.47 2.46 2.61 2.94

Loan and lease loss provision to assets 0.12 0.11 0.10 0.12 0.09 0.11 0.11 0.20

Net operating income to assets 1.07 1.10 0.79 1.11 1.20 1.08 1.29 1.02

Pretax return on assets 1.28 1.27 1.03 1.35 1.38 1.24 1.46 1.30

Return on assets 1.06 1.04 0.80 1.10 1.14 1.07 1.28 1.00

Return on equity 11.15 11.13 8.06 12.52 12.18 11.62 13.75 9.71

Net charge-offs to loans and leases 0.09 0.09 0.10 0.08 0.05 0.08 0.11 0.18

Loan and lease loss provision to net 

charge-offs 187.87 167.15 147.54 247.57 278.06 207.04 172.05 169.41

Efficiency ratio 63.78 62.83 67.60 62.22 61.25 64.06 61.85 65.72

Net interest income to operating revenue 80.89 82.83 81.49 83.47 77.72 79.68 82.54 81.67

% of unprofitable institutions 5.15 4.42 8.35 7.19 5.10 3.41 3.68 8.98

% of institutions with earnings gains 52.33 67.45 43.30 61.10 51.03 49.08 56.53 55.86

*See Table IV-A for explanation. 

Table V-B. First Half 2023, FDIC-Insured Community Banks

Performance ratios (%)

All Community Banks First Half 2023, Geographic Regions*

First Half

2023

First Half 

2022 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.84 3.49 4.67 4.90 4.74 4.75 5.06 5.16

Cost of funding earning assets 1.41 0.26 1.56 1.30 1.36 1.46 1.32 1.29

 Net interest margin 3.44 3.23 3.11 3.60 3.37 3.29 3.75 3.87

Noninterest income to assets 0.72 0.82 0.63 0.63 0.85 0.77 0.71 0.73

Noninterest expense to assets 2.51 2.43 2.36 2.47 2.46 2.46 2.60 2.96

Loan and lease loss provision to assets 0.11 0.07 0.09 0.12 0.09 0.10 0.11 0.24

Net operating income to assets 1.08 1.11 0.84 1.15 1.20 1.12 1.32 0.85

Pretax return on assets 1.27 1.31 1.08 1.40 1.39 1.27 1.48 0.95

Return on assets 1.05 1.07 0.84 1.14 1.14 1.10 1.30 0.63

Return on equity 11.12 10.84 8.43 13.05 12.32 12.13 14.12 6.24

Net charge-offs to loans and leases 0.09 0.04 0.09 0.07 0.05 0.08 0.09 0.27

Loan and lease loss provision to net 

charge-offs 176.23 269.83 133.24 250.74 288.69 179.70 198.94 135.96

Efficiency ratio 63.43 62.82 66.59 61.41 61.07 63.54 61.32 67.49

Net interest income to operating revenue 81.67 78.80 82.15 84.30 78.72 80.09 83.10 83.26

% of unprofitable institutions 4.14 4.94 6.59 5.92 3.91 2.36 3.26 8.59

% of institutions with earnings gains 60.48 40.27 49.67 71.04 58.31 59.76 63.47 60.16

*See Table IV-A for explanation. 
QUARTERLY 2023 VOLUME 17, NUMBER 3

30 

Table VI-B. Loan Performance, FDIC-Insured Community Banks

All Community 

Banks

Geographic Regions*

June 30, 2023 New York Atlanta Chicago Kansas City Dallas San Francisco

Percent of Loans 30-89 Days Past Due

All loans secured by real estate 0.27 0.23 0.24 0.28 0.30 0.37 0.15

 Construction and development 0.34 0.35 0.18 0.23 0.47 0.41 0.25

 Nonfarm nonresidential 0.18 0.17 0.12 0.19 0.21 0.22 0.09

 Multifamily residential real estate 0.09 0.07 0.03 0.15 0.15 0.11 0.05

 Home equity loans 0.37 0.43 0.32 0.33 0.36 0.45 0.32

 Other 1-4 family residential 0.40 0.30 0.45 0.45 0.38 0.58 0.26

Commercial and industrial loans 0.39 0.28 0.58 0.29 0.41 0.44 0.56

Loans to individuals 1.29 1.77 1.10 0.72 1.12 2.57 0.60

 Credit card loans 3.44 1.99 1.39 1.05 5.30 1.38 3.26

 Other loans to individuals 1.21 1.77 1.10 0.72 0.79 2.59 0.48

All other loans and leases (including farm) 0.28 0.18 0.21 0.21 0.31 0.45 0.26

Total loans and leases 0.34 0.29 0.32 0.29 0.35 0.47 0.25

Percent of Loans Noncurrent

All loans secured by real estate 0.43 0.48 0.35 0.49 0.35 0.43 0.36

 Construction and development 0.31 0.52 0.13 0.32 0.32 0.16 0.62

 Nonfarm nonresidential 0.43 0.46 0.38 0.57 0.37 0.43 0.24

 Multifamily residential real estate 0.25 0.31 0.35 0.29 0.15 0.14 0.10

 Home equity loans 0.42 0.48 0.23 0.30 0.34 0.35 0.91

 Other 1-4 family residential 0.48 0.56 0.37 0.53 0.32 0.54 0.42

Commercial and industrial loans 0.75 1.02 0.60 0.57 0.57 0.91 0.87

Loans to individuals 0.47 0.45 0.33 0.23 0.43 1.14 0.29

 Credit card loans 2.29 1.64 0.54 0.39 2.15 1.70 3.56

 Other loans to individuals 0.41 0.42 0.32 0.23 0.29 1.13 0.15

All other loans and leases (including farm) 0.44 0.08 0.34 0.33 0.37 0.77 1.43

Total loans and leases 0.47 0.52 0.38 0.48 0.39 0.54 0.44

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate 0.01 0.01 -0.01 0.01 0.00 0.01 0.02

 Construction and development 0.00 0.00 -0.02 -0.01 0.01 0.00 0.00

 Nonfarm nonresidential 0.02 0.02 -0.01 0.02 0.00 0.03 0.03

 Multifamily residential real estate 0.01 0.00 0.00 0.05 -0.01 0.00 0.01

 Home equity loans 0.01 -0.02 -0.01 -0.01 0.00 0.00 0.13

 Other 1-4 family residential 0.00 0.00 0.00 0.00 0.00 0.01 0.02

Commercial and industrial loans 0.23 0.33 0.23 0.10 0.12 0.17 0.74

Loans to individuals 1.13 1.11 1.01 0.32 1.49 1.24 1.46

 Credit card loans 9.92 4.30 1.74 1.28 15.19 1.33 11.90

 Other loans to individuals 0.83 1.04 1.00 0.31 0.38 1.24 0.96

All other loans and leases (including farm) 0.10 0.11 0.37 0.13 0.00 0.09 0.39

Total loans and leases 0.09 0.09 0.07 0.05 0.08 0.09 0.27

Loans Outstanding (in billions)

All real estate loans $1,430.5 $377.2 $151.3 $263.3 $248.3 $265.1 $125.1

 Construction and development 152.8 26.3 18.4 24.4 27.4 45.3 11.0

 Nonfarm nonresidential 568.2 137.4 69.1 103.0 86.2 110.4 62.1

 Multifamily residential real estate 137.6 57.5 7.8 28.5 18.3 9.8 15.9

 Home equity loans 44.4 11.1 5.9 11.0 5.8 5.5 5.2

 Other 1-4 family residential 441.9 142.9 45.5 76.8 71.6 77.7 27.4

Commercial and industrial loans 239.8 47.4 23.3 51.9 52.3 47.2 17.7

Loans to individuals 87.9 17.6 7.6 13.9 14.0 13.6 21.1

 Credit card loans 2.9 0.4 0.1 0.2 1.0 0.2 0.9

 Other loans to individuals 85.0 17.2 7.5 13.7 12.9 13.4 20.3

All other loans and leases (including farm) 96.8 15.1 4.5 20.6 35.2 15.6 5.8

Total loans and leases (plus unearned income) 1,854.9 457.4 186.7 349.8 349.8 341.6 169.7

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments 417,560 93,716 37,890 82,991 90,148 75,537 37,279

 Construction and development: 1-4 family 

 residential 34,900 5,710 5,209 4,451 5,697 11,424 2,410

 Construction and development: CRE and other 97,019 20,708 9,570 18,982 17,521 23,133 7,105

 Commercial and industrial 127,161 31,954 10,210 28,368 25,246 20,633 10,751

* See Table IV-A for explanation.

Note: 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.
QUARTERLY 2023 VOLUME 17, NUMBER 3

31 

INSURANCE FUND INDICATORS

Deposit Insurance Fund Increases by $0.9 Billion

DIF Reserve Ratio Falls 1 Basis Point, Ends Second Quarter at 1.10 Percent

One Institution Fails During the Second Quarter

During the second quarter, the Deposit Insurance Fund (DIF) balance 

increased by $897 million to $117.0 billion. The rise in the DIF was 

primarily driven by assessment income of $3.1 billion. Net investment 

income (including the effect of unrealized and realized gains and 

losses) added $0.3 billion. These gains were partially offset by additional 

provisions for insurance losses of $2.0 billion, and operating expenses of 

$0.5 billion. One insured institution, First Republic Bank, failed during 

the second quarter at an estimated cost to the Fund of $15.6 billion. 

The deposit insurance assessment base—average consolidated total 

assets minus average tangible equity—increased by 0.7 percent in the 

second quarter and fell by 1.0 percent over the last 12 months.1,2 

The FDIC recognized a substantial portion of the estimated loss to the 

Fund associated with First Republic Bank as part of the $16.4 billion in 

loss provisions recorded for first quarter 2023. As a result, the $2.0 billion 

in loss provisions recorded for second quarter 2023 is considerably below 

the expected loss for that institution.

Total estimated insured deposits increased by 0.8 percent in the second 

quarter, bringing year-over-year insured deposit growth to 4.7 percent. 

The DIF’s reserve ratio (the fund balance as a percent of insured deposits) 

was 1.10 percent on June 30, 2023, down 1 basis point from the previous 

quarter and 13 basis points lower than the previous year.

The FDIC adopted a DIF Restoration Plan on September 15, 2020, that 

would return the reserve ratio to 1.35 percent, the statutory minimum, 

by September 2028 as required by law. Assuming reasonable growth in 

the DIF balance and insured deposits, the reserve ratio remains on track 

to reach 1.35 percent by the statutory deadline. The FDIC will continue 

to monitor factors affecting the reserve ratio, including but not limited 

to, insured deposit growth and potential losses due to bank failures and 

related reserves, as required under the current Restoration Plan.

Author:

Charles James

Financial Economist

Division of Insurance and Research

1There are additional adjustments to the assessment base for banker’s banks and custodial banks.

2 Figures for estimated insured deposits and the assessment base include insured branches of foreign banks, in addition to insured commercial banks and savings institutions.
QUARTERLY 2023 VOLUME 17, NUMBER 3

32 

Table I-C. Insurance Fund Balances and Selected Indicators* 

 Deposit Insurance Fund**

(dollar figures in millions)

 2nd

Quarter 

2023

1st 

Quarter 

2023

4th 

Quarter 

2022

 3rd 

Quarter 

2022

 2nd 

Quarter 

2022

1st 

Quarter

 2022

 4th 

Quarter 

2021

 3rd 

Quarter 

2021

 2nd 

Quarter 

2021

 1st 

Quarter 

2021

 4th 

Quarter 

2020

 3rd 

Quarter 

2020

 2nd 

Quarter 

2020

Beginning Fund Balance $116,071 $128,218 $125,457 $124,458 $123,039 $123,141 $121,935 $120,547 $119,362 $117,897 $116,434 $114,651 $113,206

Changes in Fund Balance:

Assessments earned 3,127 3,306 2,142 2,145 2,086 1,938 1,967 1,662 1,589 1,862 1,884 2,047 1,790

Interest earned on investment 

securities 673 661 498 332 225 191 197 221 251 284 330 392 454

Realized gain on sale of 

investments 96 -1,666 0 0 0 0 0 0 0 0 0 0 0

Operating expenses 497 508 515 456 460 453 475 448 466 454 470 451 465

Provision for insurance losses 2,033 16,402 -48 -49 -86 100 8 -53 -42 -57 -48 -74 -47

All other income, net of 

expenses 3 12 114 6 29 8 61 65 2 1 9 5 2

Unrealized gain/(loss) on 

available-for-sale securities*** -472 2,450 474 -1,077 -547 -1,686 -536 -165 -233 -285 -338 -284 -383

Total fund balance change 897 -12,147 2,761 999 1,419 -102 1,206 1,388 1,185 1,465 1,463 1,783 1,445

Ending Fund Balance 116,968 116,071 128,218 125,457 124,458 123,039 123,141 121,935 120,547 119,362 117,897 116,434 114,651

Percent change from four 

quarters earlier -6.02 -5.66 4.12 2.89 3.24 3.08 4.45 4.72 5.14 5.44 6.84 6.88 6.71

Reserve Ratio (%) 1.10 1.11 1.25 1.23 1.23 1.21 1.24 1.25 1.27 1.26 1.29 1.31 1.30

Estimated Insured Deposits 10,586,340 10,500,158 10,277,910 10,177,105 10,106,822 10,165,899 9,928,576 9,760,577 9,485,856 9,510,760 9,120,806 8,919,069 8,833,508

 Percent change from four 

quarters earlier 4.74 3.29 3.52 4.27 6.55 6.89 8.86 9.43 7.38 16.53 16.78 15.39 14.93

 Percent of Total Deposit 

Liabilites After Exclusions 59.74 58.94 56.39 55.31 54.49 53.86 53.12 53.79 53.67 54.55 54.35 55.13 55.20

Estimated Uninsured 

Deposits 7,134,119 7,313,616 7,948,806 8,224,040 8,441,148 8,707,077 8,760,646 8,384,394 8,189,845 7,923,389 7,661,187 7,260,002 7,169,617

Percent change from four 

quarters earlier -15.48 -16.00 -9.27 -1.91 3.07 9.89 14.35 15.49 14.23 19.75 30.43 27.32 30.53

Percent of Total Deposit 

Liabilites After Exclusions 40.26 41.06 43.61 44.69 45.51 46.14 46.88 46.21 46.33 45.45 45.65 44.87 44.80

Total Deposit Liabilities 

After Exclusions  17,720,459 17,813,774 18,226,716 18,401,145 18,547,971 18,872,976 18,689,222 18,144,972 17,675,701 17,434,148 16,781,993 16,179,071 16,003,125

Percent change from four 

quarters earlier -4.46 -5.61 -2.47 1.41 4.93 8.25 11.36 12.15 10.45 17.97 22.64 20.46 21.43

Assessment Base** *** 20,846,656 20,709,839 21,012,144 21,027,114 21,059,588 20,942,681 20,683,058 20,128,425 19,776,253 19,310,353 18,909,418 18,575,113 18,267,307

Percent change from four 

quarters earlier -1.01 -1.11 1.59 4.46 6.49 8.45 9.38 8.36 8.26 16.43 16.23 15.93 15.71

Number of Institutions 

Reporting 4,654 4,681 4,715 4,755 4,780 4,805 4,848 4,923 4,959 4,987 5,011 5,042 5,075

Table II-C. Problem Institutions and Failed Institutions

(dollar figures in millions) 2023****** 2022****** 2022 2021 2020 2019 2018 2017

Problem Institutions

 Number of institutions 43 40 39 44 56 51 60 95

 Total assets******* $46,014 $170,387 $47,463 $170,172 $55,830 $46,190 $48,481 $13,939

Failed Institutions

 Number of institutions 3 0 0 0 4 4 0 8

 Total assets******** $532,029 $0 $0 $0 $455 $209 $0 $5,082

* Includes insured branches of foreign banks (IBAs) and any revisions to prior quarter data.

** Quarterly financial statement results are unaudited.

*** Includes unrealized postretirement benefit gain (loss).

  Does not equal total deposits and domestic office deposits in the tables above due to adjustments to align with the determination of deposit insurance coverage in the event 

of a bank failure.

** *** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.

****** Through June 30.

******* Assets shown are what were on record as of the last day of the quarter.

******** Total assets are based on final Call Reports submitted by failed institutions.
QUARTERLY 2023 VOLUME 17, NUMBER 3

33 

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

6/20 $114,651 $8,833,508

9/20 116,434 8,919,069

12/20 117,897 9,120,806

3/21 119,362 9,510,760

6/21 120,547 9,485,856

9/21 121,935 9,760,577

12/21 123,141 9,928,576

3/22 123,039 10,165,899

6/22 124,458 10,106,822

9/22 125,457 10,177,105

12/22 128,218 10,277,910

3/23 116,071 10,500,158

6/23 116,968 10,586,340

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

(dollar figures in millions)

June 30, 2023

Number of

Institutions

Total

Assets

Domestic

Deposits*

Est. Insured

Deposits

Commercial Banks and Savings Institutions

 FDIC-Insured Commercial Banks 4,071 $22,191,409 $16,179,508 $9,692,086 

 FDIC-Supervised 2,697 3,874,594 3,093,975 2,106,435 

 OCC-Supervised 712 14,868,595 10,592,720 6,183,419 

 Federal Reserve-Supervised 662 3,448,220 2,492,812 1,402,233 

 FDIC-Insured Savings Institutions 574 1,273,681 1,018,411 848,168 

 OCC-Supervised 251 551,843 434,715 369,916 

 FDIC-Supervised 286 309,569 244,941 183,993 

 Federal Reserve-Supervised 37 412,270 338,755 294,260 

Total Commercial Banks and Savings Institutions 4,645 23,465,090 17,197,919 10,540,254 

Other FDIC-Insured Institutions

 U.S. Branches of Foreign Banks 9 94,813 52,811 46,085 

Total FDIC-Insured Institutions 4,654 23,559,904 17,250,730 10,586,340 

* Excludes $1.4 trillion in foreign office deposits, which are not FDIC insured.

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range 

Quarter Ending March 31, 2023 (dollar figures in billions)

Annual Rate in Basis Points

Number of

Institutions

Percent of Total

Institutions

Amount of

Assessment Base

Percent of Total

Assessment Base

2.50 - 5.00 2,875 61.4 $7,222.0 34.87

5.01 - 8.00 1,266 27.0 11,605.7 56.04

8.01 - 12.00 428 9.1 1,498.8 7.24

12.01 - 17.00 57 1.2 303.1 1.46

17.01 - 22.00 55 1.2 80.1 0.39

22.01 - 27.00 0 0.0 0.0 0.00

> 27.00 0 0.0 0.0 0.00

DIF Reserve Ratios

Percent of Insured Deposits

1.30 1.31 1.29 1.26 1.27 1.25 1.24 1.21 1.23 1.23 1.25

1.11 1.10

6/20 9/20 12/20 3/21 6/21 9/21 12/21 3/22 6/22 9/22 12/22 3/23 6/23
QUARTERLY 2023 VOLUME 17, NUMBER 3

34 

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 VIII-A of the FDIC Quarterly 

Banking Profile is aggregated for all FDIC-insured Call Report filers, both 

commercial banks and savings 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 VI-B. The information presented in Tables I-B through VI-B is aggregated for 

all FDIC-insured commercial banks and savings institutions meeting the 

criteria for community banks that were developed for the FDIC’s Community 

Banking Study, published in December, 2012: https://www.fdic.gov/resources/

community-banking/cbi-study.html. 

The determination of which insured institutions are considered community 

banks is based on five steps.

The first step in defining a community bank is to aggregate all charter-level 

data reported under each holding company into a single banking organization. 

This aggregation applies both to balance-sheet measures and the number 

and location of banking offices. Under the FDIC definition, if the banking 

organization is designated as a community bank, every charter reporting under 

that organization is also considered a community bank when working with data 

at the charter level. 

The second step is to exclude any banking organization where more than 50 

percent of total assets are held in certain specialty banking charters, including: 

credit card specialists, consumer nonbank banks, industrial loan companies, trust 

companies, bankers’ banks, and banks holding 10 percent or more of total assets 

in foreign offices.

Once the specialty organizations are removed, the third step involves including 

organizations that engage in basic banking activities as measured by the total 

loans-to-assets ratio (greater than 33 percent) and the ratio of core deposits 

to assets (greater than 50 percent). Core deposits are defined as non-brokered 

deposits in domestic offices. Analysis of the underlying data shows that these 

thresholds establish meaningful levels of basic lending and deposit gathering 

and still allow for a degree of diversity in how individual banks construct their 

balance sheets.

The fourth step includes organizations that operate within a limited geographic 

scope. This limitation of scope is used as a proxy measure for a bank’s 

relationship approach to banking. Banks that operate within a limited market 

area have more ease in managing relationships at a personal level. Under this 

step, four criteria are applied to each banking organization. They include both 

a minimum and maximum number of total banking offices, a maximum level 

of deposits for any one office, and location-based criteria. The limits on the 
QUARTERLY 2023 VOLUME 17, NUMBER 3

35 

number of and deposits per office are adjusted upward quarterly. For banking 

offices, banks must have more than one office, and the maximum number of 

offices is 40 in 1985 and reached 104 in 2023. The maximum level of deposits 

for any one office is $1.25 billion in deposits in 1985 and reached $10.28 billion 

in deposits in 2023. The remaining geographic limitations are also based on 

maximums for the number of states (fixed at 3) and large metropolitan areas 

(fixed at 2) in which the organization maintains offices. Branch office data are 

based on the most recent data from the annual June 30 Summary of Deposits 

Survey that are available at the time of publication. 

Finally, the definition establishes an asset-size limit, also adjusted upward 

quarterly and below which the limits on banking activities and geographic 

scope are waived. The asset-size limit is $250 million in 1985 and reached 

$2.06 billion in 2023. This final step acknowledges the fact that most of those 

small banks that are not excluded as specialty banks meet the requirements for 

banking activities and geographic limits in any event.

SUMMARY OF FDIC RESEARCH 

DEFINITION OF COMMUNITY 

BANKING ORGANIZATIONS

Community banks are designated at the level of the banking organization.

(All charters under designated holding companies are considered community 

banking charters.)

Exclude: Any organization with:

— No loans or no core deposits

— Assets held in foreign branches ≥ 10% of total assets

— More than 50% of assets in certain specialty banks, including:

• credit card specialists

• consumer nonbank banks1

• industrial loan companies

• trust companies

• bankers’ banks

Include: All remaining banking organizations with:

— Total assets < indexed size threshold 2

— Total assets ≥ indexed size threshold, where:

• Loan to assets > 33%

• Core deposits to assets > 50%

• More than 1 office but no more than the indexed maximum number of 

offices.3

• Number of large MSAs with offices ≤ 2

• Number of states with offices ≤ 3

• No single office with deposits > indexed maximum branch deposit size.4

TABLES I-C THROUGH IV-C. A separate set of tables (Tables I-C through IV-C) provides comparative 

quarterly data related to the Deposit Insurance Fund (DIF), problem 

institutions, failed institutions, estimated FDIC-insured deposits, as well as 

1 Consumer nonbank banks are financial institutions with limited charters that can make commercial loans or take deposits, but not both.

2 Asset size threshold indexed to equal $250 million in 1985 and $2.06 billion in 2023.

3 Maximum number of offices indexed to equal 40 in 1985 and 104 in 2023.

4 Maximum branch deposit size indexed to equal $1.25 billion in 1985 and $10.28 billion in 2023.
QUARTERLY 2023 VOLUME 17, NUMBER 3

36 

assessment rate information. Depository institutions that are not insured 

by the FDIC through the DIF are not included in the FDIC Quarterly Banking 

Profile. U.S. branches of institutions headquartered in foreign countries and 

non-deposit trust companies are not included unless otherwise indicated. 

Efforts are made to obtain financial reports for all active institutions. However, 

in some cases, final financial reports are not available for institutions that have 

closed or converted their charters.

DATA SOURCES The financial information appearing in this publication is obtained primarily 

from the Federal Financial Institutions Examination Council (FFIEC) 

Consolidated Reports of Condition and Income (Call Reports) and the OTS Thrift 

Financial Reports (TFR) submitted by all FDIC-insured depository institutions. 

(TFR filers began filing Call Reports effective with the quarter ending March 

31, 2012.) This information is stored on and retrieved from the FDIC’s Research 

Information System (RIS) database.

COMPUTATION METHODOLOGY Parent institutions are required to file consolidated reports, while their 

subsidiary financial institutions are still required to file separate reports. 

Data from subsidiary institution reports are included in the Quarterly Banking 

Profile tables, which can lead to double-counting. No adjustments are made for 

any double-counting of subsidiary data. Additionally, certain adjustments are 

made to the OTS Thrift Financial Reports to provide closer conformance with the 

reporting and accounting requirements of the FFIEC Call Reports. (TFR filers 

began filing Call Reports effective with the quarter ending March 31, 2012.)

All condition and performance ratios represent weighted averages, which is 

the sum of the individual numerator values divided by the sum of individual 

denominator values. 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 “pooling-of-interest” mergers, the assets 

of the acquired institution(s) are included in average assets, since the yearto-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. For the community 

bank subgroup, growth rates will reflect changes over time in the number and 

identities of institutions designated as community banks, as well as changes 

in the assets and liabilities, and income and expenses of group members. 

Unless indicated otherwise, growth rates are not adjusted for mergers or 

other changes in the composition of the community bank subgroup. When 

community bank growth rates are adjusted for mergers, prior period balances 

used in the calculations represent totals for the current group of community 

bank reporters, plus prior period amounts for any institutions that were 

subsequently merged into current community banks.

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; institutions can move their 

home offices between regions, savings institutions can convert to commercial 

banks, or commercial banks may convert to savings institutions.
QUARTERLY 2023 VOLUME 17, NUMBER 3

37 

ACCOUNTING CHANGES Financial accounting pronouncements by the Financial Accounting Standards 

Board (FASB) can result in changes in an individual bank’s accounting policies 

and in the Call Reports they submit. Such accounting changes can affect the 

aggregate amounts presented in the QBP for the current period and the periodto-period comparability of such financial data. 

The current quarter’s Financial Institution Letter (FIL) and related Call Report 

supplemental instructions can provide additional explanation to the QBP reader 

beyond any material accounting changes discussed in the QBP analysis.

https://www.fdic.gov/news/financial-institution-letters/2023/fil23033.html

https://www.fdic.gov/resources/bankers/call-reports/index.html

Further information on changes in financial statement presentation, income 

recognition and disclosure is available from the FASB. 

https://www.fasb.org/page/index?pageId=standards/index.html

DEFINITIONS 

(IN ALPHABETICAL ORDER)

All other assets – total cash, balances due from depository institutions, 

premises, fixed assets, direct investments in real estate, investment in 

unconsolidated subsidiaries, customers’ liability on acceptances outstanding, 

assets held in trading accounts, federal funds sold, securities purchased 

with agreements to resell, fair market value of derivatives, prepaid deposit 

insurance assessments, and other assets.

All other liabilities – bank’s liability on acceptances, limited-life preferred 

stock, allowance for estimated off-balance-sheet credit losses, fair market 

value of derivatives, and other liabilities.

Assessment base – Effective April 1, 2011, the deposit insurance assessment 

base changed to “average consolidated total assets minus average tangible 

equity” with an additional adjustment to the assessment base for banker’s 

banks and custodial banks. Previously, the assessment base consisted of 

deposit liabilities after exclusions.

Assessment rate schedule – Initial base assessment rates for small institutions 

(except new institutions) are based on a combination of financial ratios and 

CAMELS component ratings. Initial rates for large institutions—generally 

those with at least $10 billion in assets—are also based on CAMELS component 

ratings and certain financial measures combined into two scorecards—one for 

most large institutions and another for the remaining very large institutions 

that are structurally and operationally complex or that pose unique challenges 

and risks in case of failure (highly complex institutions). The FDIC may take 

additional information into account to make a limited adjustment to a large 

institution’s scorecard results, which are used to determine a large institution’s 

initial base assessment rate.

Initial rates for small institutions are subject to minimums and maximums 

based on an institution’s CAMELS composite rating.

The current assessment rate schedule became effective January 1, 2023. Under 

the current schedule, initial base assessment rates range from 5 to 32 basis 

points. An institution’s total base assessment rate may differ from its initial 

rate due to three possible adjustments: (1) Unsecured Debt Adjustment: An 

institution’s rate may decrease by up to 5 basis points for unsecured debt. 

The unsecured debt adjustment cannot exceed the lesser of 5 basis points or 

50 percent of an institution’s initial base assessment rate (IBAR). Thus, for 

example, an institution with an IBAR of 5 basis points would have a maximum 
QUARTERLY 2023 VOLUME 17, NUMBER 3

38 

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

assessment rate lower than 2.5 basis points. (2) Depository Institution Debt 

Adjustment: For institutions that hold long-term unsecured debt issued by 

another insured depository institution, a 50 basis point charge is applied to the 

amount of such debt held in excess of 3 percent of an institution’s Tier 1 capital. 

(3) Brokered Deposit Adjustment: Rates for large institutions that are not well 

capitalized or do not have a composite CAMELS rating of 1 or 2 may increase 

(not to exceed 10 basis points) if their brokered deposits exceed 10 percent of 

domestic deposits.

The assessment rate schedule effective January 1, 2023, is shown in the 

following table:

Total Base Assessment Rates*

Established Small Banks Large and 

Highly Complex 

Institutions

CAMELS Composite

1 or 2 3 4 or 5

Initial Base Assessment Rate 5 to 18 8 to 32 18 to 32 5 to 32

Unsecured Debt Adjustment -5 to 0 -5 to 0 -5 to 0 -5 to 0

Brokered Deposit Adjustment N/A N/A N/A 0 to 10

Total Base Assessment Rate 2.5 to 18 4 to 32 13 to 32 2.5 to 42

* All amounts for all categories are in basis points annually. Total base rates that are not the minimum or 

maximum rate will vary between these rates. Total base assessment rates do not include the depository 

institution debt adjustment.

Each institution is assigned a risk-based rate for a quarterly assessment 

period near the end of the quarter following the assessment period. Payment 

is generally due on the 30th day of the last month of the quarter following the 

assessment period. Supervisory rating changes are effective for assessment 

purposes as of the examination transmittal date.

Assets securitized and sold – total outstanding principal balance of assets 

securitized and sold with servicing retained or other seller-provided credit 

enhancements.

Capital Purchase Program (CPP) – As announced in October 2008 under the 

TARP, the Treasury Department purchase of noncumulative perpetual preferred 

stock and related warrants that is treated as Tier 1 capital for regulatory capital 

purposes is included in “Total equity capital.” Such warrants to purchase 

common stock or noncumulative preferred stock issued by publicly-traded 

banks are reflected as well in “Surplus.” Warrants to purchase common stock or 

noncumulative preferred stock of not-publicly-traded bank stock are classified 

in a bank’s balance sheet as “Other liabilities.”

Common equity Tier 1 capital ratio – ratio of common equity Tier 1 capital 

to risk-weighted assets. Common equity Tier 1 capital includes common 

stock instruments and related surplus, retained earnings, accumulated other 

comprehensive income (AOCI), and limited amounts of common equity Tier 1 

minority interest, minus applicable regulatory adjustments and deductions. 

Items that are fully deducted from common equity Tier 1 capital include 

goodwill, other intangible assets (excluding mortgage servicing assets) and 

certain deferred tax assets; items that are subject to limits in common equity 

Tier 1 capital include mortgage servicing assets, eligible deferred tax assets, 

and certain significant investments. Beginning March 2020, this ratio does not 
QUARTERLY 2023 VOLUME 17, NUMBER 3

39 

include institutions that have a Community Bank Leverage Ratio election in 

effect at the report date.

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.

Deposits liabilities after exclusions – amount equal to gross total deposit 

liabilities meeting the statutory definition of a deposit in Section 3(l) of 

the Federal Deposit Insurance Act, before deducting allowable exclusions. 

Deposit liabilities after exclusions may differ from amounts reported for total 

deposits or total domestic deposits due to adjustments made to align with the 

determination of deposit insurance coverage in the event of a bank failure, 

including reporting based on an unconsolidated single FDIC certificate number 

basis.

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). 
QUARTERLY 2023 VOLUME 17, NUMBER 3

40 

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 deposit 

liabilities after exclusions minus estimated uninsured deposits. Beginning 

September 30, 2009, insured deposits reflect an increase in the FDIC’s standard 

maximum deposit insurance amount from $100,000 to $250,000. From 

December 31, 2010, through December 31, 2012, insured deposits also include all 

funds held in noninterest-bearing transaction accounts, without limit.

Estimated uninsured deposits – In general, institutions with $1 billion or 

more in total assets report estimated uninsured deposits in domestic offices 

of the bank and in insured branches in Puerto Rico and U.S. territories and 

possessions, including related interest accrued and unpaid. For institutions 

that do not report estimated uninsured deposits, the FDIC calculates this 

amount as the amount of deposit and retirement accounts with balances greater 

than the standard maximum deposit insurance amount (SMDIA), currently 

$250,000, minus the portion that is insured. The amount that is insured is 

estimated by multiplying the number of accounts with balances greater than 

the SMDIA, as reported on the Call Report, by the SMDIA. For example, under 

the current SMDIA, if an institution reports a number and amount of deposit 

and retirement accounts with balances greater than $250,000 of 1,000 and $500 

million, respectively, estimated uninsured deposits as calculated by the FDIC 

would equal $250 million ($500,000,000 – 1,000 * $250,000).

Failed/assisted institutions – An institution fails when regulators take 

control of the institution, placing the assets and liabilities into a bridge bank, 

conservatorship, receivership, or another healthy institution. This action may 

require the FDIC to provide funds to cover losses. An institution is defined as 

“assisted” when the institution remains open and receives assistance in order 

to continue operating.

Fair Value – the valuation of various assets and liabilities on the balance 

sheet—including trading assets and liabilities, available-for-sale securities, 

loans held for sale, assets and liabilities accounted for under the fair value 

option, and foreclosed assets—involves the use of fair values. During periods of 
QUARTERLY 2023 VOLUME 17, NUMBER 3

41 

market stress, the fair values of some financial instruments and nonfinancial 

assets may decline.

FHLB advances – all borrowings by FDIC-insured institutions from the Federal 

Home Loan Bank System (FHLB), as reported by Call Report filers, and by TFR 

filers prior to March 31, 2012.

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.

Liquidity ratio – liquid assets to total assets. Liquid assets include cash, federal 

funds sold, securities purchased under agreements to resell, and securities 

(including unrealized gains/losses on securities) less pledged securities.

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 uncollectability), less amounts recovered on loans and leases 

previously charged off.

Net interest margin – the difference between interest and dividends earned 

on interest-bearing assets and interest paid to depositors and other creditors, 

expressed as a percentage of average earning assets. No adjustments are made 

for interest income that is tax exempt.

Net loans to total assets – loans and lease financing receivables, net of 

unearned income, allowance and reserves, as a percent of total assets on a 

consolidated basis.

Net operating income – income excluding discretionary transactions such as 

gains (or losses) on the sale of investment securities and extraordinary items. 

Income taxes subtracted from operating income have been adjusted to exclude 

the portion applicable to securities gains (or losses).

Noncurrent assets – the sum of loans, leases, debt securities, and other assets 

that are 90 days or more past due, or in nonaccrual status.

Noncurrent loans & leases – the sum of loans and leases 90 days or more past 

due, and loans and leases in nonaccrual status.
QUARTERLY 2023 VOLUME 17, NUMBER 3

42 

Number of institutions reporting – the number of institutions that actually 

filed a financial report.

New reporters – insured institutions filing quarterly financial reports for the 

first time.

Other borrowed funds – federal funds purchased, securities sold with 

agreements to repurchase, demand notes issued to the U.S. Treasury, FHLB 

advances, other borrowed money, mortgage indebtedness, obligations under 

capitalized leases and trading liabilities, less revaluation losses on assets held 

in trading accounts.

Other real estate owned – primarily foreclosed property. Direct and indirect 

investments in real estate ventures are excluded. The amount is reflected net 

of valuation allowances. For institutions that filed 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. (TFR filers began filing Call 

Reports effective with the quarter ending March 31, 2012.)

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 – bank net income (including gains or losses on securities and 

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

basic yardstick of bank profitability.

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

extraordinary items) as a percentage of average total equity capital.
QUARTERLY 2023 VOLUME 17, NUMBER 3

43 

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

include on-balance-sheet as well as off-balance-sheet items multiplied by 

risk-weights that range from zero to 200 percent. A conversion factor is used 

to assign a balance sheet equivalent amount for selected off-balance-sheet 

accounts.

Securities – excludes securities held in trading accounts. Banks’ securities 

portfolios consist of securities designated as “held-to-maturity” (reported 

at amortized cost (book value)), securities designated as “available-forsale” (reported at fair (market) value), and equity securities with readily 

determinable fair values not held for trading.

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

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

Financial Report (TFR) filers also include gains (losses) on the sales of assets 

held for sale. (TFR filers began filing Call Reports effective with the quarter 

ending March 31, 2012.)

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.

Small Business Lending Fund – The Small Business Lending Fund (SBLF) was 

enacted into law in September 2010 as part of the Small Business Jobs Act of 

2010 to encourage lending to small businesses by providing capital to qualified 

community institutions with assets of less than $10 billion. The SBLF Program 

is administered by the U.S. Treasury Department (https://home.treasury.gov/

policy-issues/small-business-programs/small-business-lending-fund).

Under the SBLF Program, the Treasury Department purchased noncumulative 

perpetual preferred stock from qualifying depository institutions and holding 

companies (other than Subchapter S and mutual institutions). When this stock 

has been issued by a depository institution, it is reported as “Perpetual preferred 

stock and related surplus.” For regulatory capital purposes, this noncumulative 

perpetual preferred stock qualifies as a component of Tier 1 capital. Qualifying 

Subchapter S corporations and mutual institutions issue unsecured subordinated 

debentures to the Treasury Department through the SBLF. Depository 

institutions that issued these debentures report them as “Subordinated notes 

and debentures.” For regulatory capital purposes, the debentures are eligible 

for inclusion in an institution’s Tier 2 capital in accordance with their primary 

federal regulator’s capital standards. To participate in the SBLF Program, an 

institution with outstanding securities issued to the Treasury Department under 

the Capital Purchase Program (CPP) was required to refinance or repay in full 

the CPP securities at the time of the SBLF funding. Any outstanding warrants 

that an institution issued to the Treasury Department under the CPP remain 

outstanding after the refinancing of the CPP stock through the SBLF Program 

unless the institution chooses to repurchase them.
QUARTERLY 2023 VOLUME 17, NUMBER 3

44 

Subchapter S corporation – A Subchapter S corporation is treated as a passthrough 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 and 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.)

Yield on earning assets – total interest, dividend, and fee income earned on 

loans and investments as a percentage of average earning assets.