FDIC Quarterly 

Quarterly Banking Profile: 

Fourth Quarter 2009 

Measuring Progress in 

U.S. Housing and 

Mortgage Markets 

2010, Volume 4, Number 1 
 

 

 

 

 

 

The FDIC Quarterly is published by the Division of Insurance and Research of the Federal Deposit 

Insurance Corporation and contains a comprehensive summary of the most current financial results for 

the banking industry. Feature articles appearing in the FDIC Quarterly range from timely analysis of 

economic and banking trends at the national and regional level that may affect the risk exposure of 

FDIC-insured institutions to research on issues affecting the banking system and the development of 

regulatory policy. 

Single copy subscriptions of the FDIC Quarterly can be obtained through the FDIC Public Information Center, 3501 Fairfax Drive, Room E-1002, Arlington, VA 22226. E-mail requests should be 

sent to publicinfo@fdic.gov. Change of address information also should be submitted to the Public 

Information Center. 

The FDIC Quarterly is available online by visiting the FDIC Web site at www.fdic.gov. To receive 

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subscribe at www.fdic.gov/about/subscriptions/index.html. 

Chairman Sheila C. Bair 

Director, Division of Insurance Arthur J. Murton 

and Research 

Executive Editor Richard A. Brown 

Managing Editors Diane L. Ellis 

Paul H. Kupiec 

Christopher J. Newbury 

Editor Kathy Zeidler 

Publication Managers Peggi Gill 

Lynne Montgomery 

Media Inquiries (202) 898-6993 
FDIC Quarterly 

2010, Volume 4, Number 1 

Quarterly Banking Profile: Fourth Quarter 2009 

FDIC-insured institutions reported an aggregate profit of $914 million in the fourth quarter of 2009, a $38.7 

billion improvement from the $37.8 billion net loss the industry sustained in the fourth quarter of 2008, but 

still well below historical norms for quarterly profits. More than half of all institutions (50.3 percent) reported 

year-over-year improvements in their quarterly net income. Almost one-third of all institutions (32.7 percent) 

reported net losses for the quarter, compared with 34.6 percent a year earlier. For the full year, banks reported 

net income totaling $12.5 billion—up from $4.5 billion in 2008. See page 1. 

Insurance Fund Indicators 

Estimated insured deposits (based on $250,000 coverage) increased 1.8 percent in the fourth quarter of 2009. 

The Deposit Insurance Fund reserve ratio fell to -0.39 percent, and 45 FDIC-insured institutions failed 

during the quarter. See page 15. 

Temporary Liquidity Guarantee Program 

The FDIC Board approved the Temporary Liquidity Guarantee Program (TLGP) in response to major 

disruptions in credit markets. The TLGP improves access to liquidity for participating institutions by fully 

guaranteeing non-interest-bearing transaction deposit accounts and by guaranteeing eligible senior unsecured 

debt. As of December 31, 2009, more than 86 percent of FDIC-insured institutions have opted in to the 

Transaction Account Guarantee Program, and 7,808 eligible entities have elected the option to participate 

in the Debt Guarantee Program. Approximately $834 billion in non-interest-bearing transaction accounts 

was guaranteed as of December 31, 2009, and $309 billion in guaranteed senior unsecured debt, issued by 

84 entities, was outstanding at the end of the fourth quarter. See page 19. 

Measuring Progress in U.S. Housing and Mortgage Markets 

U.S. housing and mortgage markets have experienced historic distress over the past three years as evidenced 

by the significant decline in housing fundamentals. However, some signs of eventual recovery are beginning 

to emerge. This chartbook examines the housing and mortgage markets for tentative signs of recovery and 

evaluates those hopeful signs against the challenges that remain. See page 29. 

The views expressed are those of the authors and do not necessarily reflect official positions of the Federal Deposit Insurance 

Corporation. Some of the information used in the preparation of this publication was obtained from publicly available sources 

that are considered reliable. However, the use of this information does not constitute an endorsement of its accuracy by the 

Federal Deposit Insurance Corporation. Articles may be reprinted or abstracted if the publication and author(s) are credited. 

Please provide the FDIC’s Division of Insurance and Research with a copy of any publications containing reprinted material. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Banking Profile Fourth Quarter 2009 

INSURED INSTITUTION PERFORMANCE 

■ Industry Reports Fourth Quarter Net Income of $914 Million 

■ Loss Provisions Remain High but Register First Year-Over-Year Decline in 

More Than Three Years 

■ Full-Year Net Income Totals $12.5 Billion 

■ Pace of Deterioration in Asset Quality Indicators Slows 

■ Loan Balances Fall for a Sixth Consecutive Quarter 

Fourth Quarter Earnings Are Slightly Above 

Break-Even 

The benefits of a recovering economy and stable financial markets in year-over-year comparisons were evident 

in the performance of insured depository institutions in 

the fourth quarter. The small profit reported by the 

industry in the quarter essentially represented breakeven performance, but it contrasted sharply with the 

record quarterly loss posted in the fourth quarter of 

2008. Fourth quarter bank net income for the industry 

was $914 million, compared with a $37.8 billion net 

loss a year earlier. While much of the year-over-year 

earnings improvement was concentrated among the 

largest banks, there was also evidence of a broader 

improving trend. For the first time in three years, more 

than half of insured institutions reported year-over-year 

improvement in net income. The percentage of institutions reporting a net loss for the quarter was lower 

than a year ago. The average return on assets (ROA) 

for all four of the asset size groups featured in the Quarterly Banking Profile was better than a year ago, although 

only the largest size group—institutions with more 

than $10 billion in assets—had a positive average ROA 

for the quarter. 

Revenues Rebound from Fourth Quarter 2008 

A number of factors contributed to the year-over-year 

improvement in quarterly earnings. Noninterest income 

was $21.7 billion (53.2 percent) higher than in the 

fourth quarter of 2008, as several categories of noninterest income that were negative a year ago swung back 

into positive territory. Trading revenues totaled $2.8 

billion in the quarter, compared with $9.2 billion in 

trading losses a year earlier. Servicing income also 

rebounded strongly, from a $390 million loss a year ago 

to a gain of $8.0 billion. Loan sales produced $1.3 

billion in gains, versus $1.3 billion in losses in the 

fourth quarter of 2008. Another significant contribution 

to the improvement in earnings came from a $16.2 

billion (14.2 percent) decline in noninterest expense. 

This decline was the result of an $18.1 billion (77.2 

percent) reduction in charges for goodwill impairment 

and other intangible asset expenses. Quarterly loan-loss 

provisions posted a year-over-year decline for the first 

Chart 1 Chart 2 

Quarterly Net Income 

Billions of Dollars 

-40 

-30 

-20 

-10 

0 

10 

20 

30 

40 

50 

60 

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

Securities and Other Gains/Losses, Net 

Net Operating Income 

34.0 33.2 34.7 32.6 

36.9 38.0 38.0 35.3 35.6 36.8 

28.7 

0.5 

19.3 

4.7 0.9 

-37.8 

5.5 

-4.3 

2005 2006 2007 2008 2009 

2.0 0.9 

Percentage of Insured Institutions with Earnings Gains 

Percent of Institutions with Year-Over-Year Increases in Quarterly Net Income 

0 

10 

20 

30 

40 

50 

60 

70 

1 2 3 4 1 2 3 4 1 2 3 4 1 2 34 1 2 3 4 

2005 2006 2007 2008 2009 

FDIC QUARTERLY 1 2010, VOLUME 4, NO. 1 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

time since the third quarter of 2006, falling by $10.0 

billion (14.1 percent). Provisions remained above $60 

billion for the fifth consecutive quarter, but the $61.1 

billion that institutions set aside in the quarter was the 

smallest quarterly total since the third quarter of 2008. 

Realized gains on securities and other assets totaled 

$158 million, an $8.7 billion improvement over the 

$8.6 billion in realized losses reported by the industry a 

year ago. Net interest income was higher than a year 

ago but only by $1.7 billion (1.8 percent). 

Margins Register Improvement 

The average net interest margin (NIM) in the fourth 

quarter was 3.49 percent, slightly lower than the 3.51 

percent reported in the third quarter but higher than 

the 3.33 percent average in the fourth quarter of 2008. 

The quarter-over-quarter decline was concentrated 

among larger institutions. More than half of all institutions (55.5 percent) reported higher NIMs compared to 

third quarter levels. Also, quarterly NIMs at a majority 

of institutions (53.0 percent) increased from a year ago, 

with larger institutions reporting the biggest gains. 

Margin improvements helped offset declines in interestbearing assets. Earning assets declined by $138.8 billion 

(1.2 percent) during the fourth quarter and fell by 

$477.2 billion (4.1 percent) for the full year. 

Full-Year Earnings Remain Well below Historical Norms 

Full-year 2009 net income was $12.5 billion, up from 

$4.5 billion in 2008, but well below the $100 billion in 

net income the industry reported for 2007. Increased 

noninterest income, higher net interest income, and 

lower realized losses on securities and other assets 

outstripped increased noninterest expenses and higher 

Chart 3 

Major Factors Contributing to the 

Year-Over-Year Change in Quarterly Earnings 

Billions of Dollars 

70 

60 

50 

40 

30 

20 

10 

0 

Positive Factors 

$8.7 

$10.0 

$16.2 

$21.7 

Increase in Net $1.7 Interest Income 

Decrease in Realized 

Losses on Securities 

Decline in Loan 

Loss Provisions 

Decline in 

Noninterest Expenses 

Increase in 

Noninterest Income 

Negative Factors 

Decrease in 

Extraordinary Items $4.9 

$14.7 Increase in 

Income Taxes 

loan loss provisions to produce the increase in earnings. 

Noninterest income was $52.8 billion (25.4 percent) 

higher than in 2008, with trading revenue registering a 

$26.6 billion improvement. Net interest income was 

$38.1 billion (10.6 percent) higher, as the full-year industry NIM rose for the first time in seven years. The average NIM in 2009 was 3.47 percent, the highest annual 

average since 2005. Realized losses on securities and 

other assets fell from $15.4 billion in 2008 to $1.4 billion 

in 2009. These positive contributions to the rise in fullyear earnings were partially offset by a $71.5 billion (40.6 

percent) increase in loan loss provisions and a $16.3 

billion (4.4 percent) increase in noninterest expense. 

More than one in four institutions (29.5 percent) 

reported negative net income for the year, up from 24.8 

percent in 2008. This is the highest proportion of unprofitable institutions in any year since at least 1984. The 

average ROA in 2009 was 0.09 percent, up from 0.03 

percent in 2008. As was the case in 2008, full-year industry earnings for 2009 (which consist of calendar-year net 

income of 8,012 insured institutions filing December 31 

financial reports) would have been significantly lower if 

losses experienced by institutions that failed during the 

year were reflected in year-end reporting.1 

1 During 2009, 119 institutions filed year-to-date financial reports for 

one or more quarters of the year before their failure. Together, these 

institutions reported more than $8.2 billion in net losses through the 

first three quarters of 2009 that are not included in full-year earnings 

for the industry. These losses are reflected in the published quarterly 

industry earnings totals for the first three quarters of 2009. In addition, under purchase accounting rules, income and expenses that have 

been booked by acquired institutions are reset to zero as of the date 

when a change in ownership occurs; previously accrued income and 

expenses are reflected as adjustments to the assets, equity capital, and 

reserves of acquired institutions and are not included in the subsequent reporting of year-to-date income and expense. 

Chart 4 

Quarterly Net Interest Margins 

Percent 

3.75% 

3.46% 

2.5 

3.0 

3.5 

4.0 

4.5 

12341234123412341234 

Assets < $1 Billion 

Assets > $1 Billion 

2005 2006 2007 2008 2009 

FDIC QUARTERLY 2 2010, VOLUME 4, NO. 1 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Banking Profile 

Loan Losses Rise for 12th Consecutive Quarter 

Asset quality indicators worsened in the fourth quarter. 

Net charge-offs (NCOs) totaled $53.0 billion, an 

increase of $14.4 billion (37.2 percent) over the same 

period in 2008. The annualized net charge-off rate rose 

to 2.89 percent, up from 1.95 percent a year earlier and 

2.72 percent in the third quarter of 2009. This is the 

highest quarterly NCO rate reported by the industry in 

the 26 years for which quarterly NCO data are available. NCOs in all major loan categories increased from 

a year ago. The largest increases occurred in residential 

mortgage loans, where NCOs rose by $3.3 billion (47.7 

percent); credit cards (up by $2.7 billion, or 41.4 

percent); loans to commercial and industrial (C&I) 

borrowers (up $2.3 billion, or 37.0 percent); home 

equity loans (up $1.9 billion, or 58.6 percent); and real 

estate loans secured by nonfarm nonresidential properties (up $1.9 billion, or 130.9 percent). This is the 12th 

consecutive quarter that NCOs have posted a yearover-year increase. 

Growth in Noncurrent Loans Slows 

Noncurrent loans and leases continued to rise through 

the end of the year, with a few notable exceptions. The 

total amount of loans and leases that were noncurrent 

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

increased by $24.3 billion (6.6 percent) in the fourth 

quarter, to $391.3 billion, or 5.37 percent of all loans 

and leases at year-end. This is the highest level for the 

industry’s noncurrent rate in the 26 years that all 

insured institutions have reported noncurrent loan data. 

The increase in noncurrent loans in the quarter was 

largely driven by noncurrent residential mortgage loans, 

which rose by $23.2 billion (14.9 percent). Much of 

Chart 5 

Annual Return on Assets and Return on Equity, 

1984–2009 

-0.2 

0.0 

0.2 

0.4 

0.6 

0.8 

1.0 

1.2 

1.4 

1.6 

1984 1989 1994 1999 2004 2009 

-2 

0 

2 

4 

6 

8 

10 

12 

14 

16 

Annual ROE

 (Percent) 

ROE 

ROA 

Annual ROA 

(Percent) 

this increase—$19.1 billion—consisted of rebooked 

GNMA mortgages that have government guarantees. 

The amount of real estate loans secured by nonfarm 

nonresidential real estate properties that were noncurrent rose by $4.5 billion (12.2 percent). In contrast, 

noncurrent C&I loans declined by $3.5 billion (7.7 

percent), and noncurrent real estate construction and 

development (C&D) loans fell by $2.0 billion (2.7 

percent). This was the first time in three years that 

noncurrent C&I loans have declined and the first time 

in four years that noncurrent C&D loans have fallen. 

Reserves Exceed 3 Percent of Total Loans 

Reserves for loan and lease losses increased by only $7.0 

billion (3.2 percent) in the fourth quarter, as institutions added $8.1 billion more in loss provisions to their 

reserves than they took out in net charge-offs. The 

average coverage ratio of reserves to noncurrent loans 

and leases fell from 60.1 percent to 58.1 percent, ending 

the year at the lowest level since midyear 1991. In 

contrast, the industry’s ratio of reserves to total loans 

and leases rose from 2.97 percent to 3.12 percent during 

the quarter, and is now at its highest level since the 

creation of the FDIC. 

Capital Ratios Improve 

The industry’s capital also registered relatively slow 

growth in the quarter. Bank equity increased by only 

$4.1 billion (0.3 percent), the smallest increase in the 

last four quarters. Leverage capital (as defined for 

Prompt Corrective Action purposes) increased by $11.9 

billion (1.1 percent). Despite the slow growth in capital, the industry’s regulatory capital ratios all improved, 

as industry assets fell. 

Chart 6 

Quarterly Net Charge-Offs and Change in 

Noncurrent Loans, 2006–2009 

Billions of Dollars 

110 

90 

Quarterly Change in Noncurrent Loans 

Quarterly Net Charge-Offs 

50 

30 

10 

70 

-10 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 

2006 2007 2008 2009 

FDIC QUARTERLY 3 2010, VOLUME 4, NO. 1 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banks Report Further Declines in Loan Balances 

Total assets of insured institutions fell for a fourth 

consecutive quarter, declining by $137.2 billion (1.0 

percent). During the year, total industry assets declined 

by a net $731.7 billion (5.3 percent), the largest 

percentage decline in a year since the inception of the 

FDIC. Total loan and lease balances declined for the 

sixth quarter in a row, falling by $128.8 billion (1.7 

percent). The fourth-quarter decline was led by C&I 

loan balances, which fell by $54.5 billion (4.3 percent); 

real estate C&D loans (down $41.5 billion, or 8.4 

percent); loans to depository institutions (down $21.2 

billion, or 15.9 percent); and residential mortgage loans 

(down $11.2 billion, or 0.6 percent). Credit card 

balances increased $29.1 billion during the quarter (7.4 

percent), but balances in all other major loan categories 

declined. Insured institutions continued to add to their 

securities holdings. Slightly more than half of all 

insured institutions (52 percent) reported declining 

loan balances in the fourth quarter. Total securities 

increased by $103.7 billion (4.3 percent) during the 

quarter, with mortgage-backed securities rising by $44.8 

billion (3.3 percent), and U.S. Treasury securities 

increasing by $15.9 billion (18.3 percent). During 2009, 

insured institution securities holdings increased by 

$465.1 billion (22.9 percent). 

Deposit Growth Remains Strong 

Institutions continued to increase their reliance on 

deposit funding in the fourth quarter. Even as assets 

were declining, total deposits increased by $125.7 

billion (1.4 percent), as domestic noninterest-bearing 

deposits rose by 89.8 billion (6.1 percent). Nondeposit 

Chart 7 

liabilities fell by $268.1 billion (10.0 percent) during 

the quarter, led by a $184.1 billion (23.3 percent) 

decline in federal funds purchased and securities sold 

under repurchase agreements. Federal Home Loan Bank 

advances fell by $42.6 billion (7.4 percent). During the 

quarter, the percentage of industry assets funded by 

deposits rose from 68.7 percent to 70.4 percent, the 

highest level since March 31, 1996. 

Industry Consolidation Continues 

The number of insured commercial banks and savings 

institutions reporting financial results declined by 87 

during the fourth quarter. Only three new charters were 

added during the quarter, while 43 institutions were 

absorbed by mergers and 45 institutions failed. For the 

full year, the number of reporting institutions fell from 

8,305 to 8,012. Only 31 new charters were added in 

2009, the smallest annual total since 1942. Mergers 

absorbed 179 institutions during the year, and 140 

insured institutions failed. This is the largest number of 

bank failures in a year since 1992. The number of institutions on the FDIC’s “Problem List” rose to 702 at the 

end of 2009, from 552 at the end of the third quarter 

and 252 at the end of 2008. Total assets of “problem” 

institutions were $402.8 billion at yearend 2009, 

compared with $345.9 billion at the end of September 

and $159.0 billion at the end of 2008. Both the number 

and assets of “problem” institutions are at the highest 

level since June 30, 1993. 

Author: Ross Waldrop, Sr. Banking Analyst 

Division of Insurance and Research 

(202) 898-3951 

Chart 8 

FDIC QUARTERLY 4 2010, VOLUME 4, NO. 1 

Twelve-Month Loan Growth Rates 

Percent 

-20 

-15 

-10 

-5 

0 

5 

10 

15 

20 

25 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 

Commercial Real Estate 

Residential Real Estate 

C&I Loans 

Consumer Loans 

Number of Insured Commercial Bank and Savings 

Institution Failures by Quarter, 1990–2009 

0 

20 

40 

60 

80 

100 

120 

140 

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 

Number of Failures* 

2009 

124 

45 

*Does not include assistance transactions. 
 

 

 

 

 

 

 

Quarterly Banking Profile 

TABLE I-A. Selected Indicators, All FDIC-Insured Institutions* 2009 2008 2007 2006 2005 2004 2003 

Return on assets (%) ...................................................................................................... 0.09 0.03 0.81 1.28 1.28 1.28 1.38 

Return on equity (%)....................................................................................................... 0.90 0.35 7.75 12.30 12.43 13.20 15.05 

Core capital (leverage) ratio (%) .................................................................................... 8.65 7.47 7.97 8.22 8.25 8.11 7.88 

Noncurrent assets plus other real estate owned to assets (%) .................................... 3.32 1.91 0.95 0.54 0.50 0.53 0.75 

Net charge-offs to loans (%) .......................................................................................... 2.49 1.29 0.59 0.39 0.49 0.56 0.78 

Asset growth rate (%) ..................................................................................................... -5.29 6.19 9.89 9.04 7.63 11.37 7.58 

Net interest margin (%)................................................................................................... 3.47 3.16 3.29 3.31 3.47 3.52 3.73 

Net operating income growth (%)................................................................................... 77.52 -90.67 -27.58 8.53 11.39 3.99 16.38 

Number of institutions reporting..................................................................................... 8,012 8,305 8,534 8,680 8,833 8,976 9,181 

Commercial banks................................................................................................... 6,839 7,086 7,283 7,401 7,526 7,631 7,770 

Savings institutions ................................................................................................. 1,173 1,219 1,251 1,279 1,307 1,345 1,411 

Percentage of unprofitable institutions (%).................................................................... 29.52 24.84 12.08 7.94 6.22 5.97 5.99 

Number of problem institutions...................................................................................... 702 252 76 50 52 80 116 

Assets of problem institutions (in billions) ..................................................................... $403 $159 $22 $8 $7 $28 $30 

Number of failed institutions........................................................................................... 140 25 3 0 0 4 3 

Number of assisted institutions...................................................................................... 8 5 0 0 0 0 0 

* Excludes insured branches of foreign banks (IBAs). 

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

(dollar figures in millions) 

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

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

CONDITION DATA 

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

Loans secured by real estate.................................................................................. 

1-4 family residential mortgages ..................................................................... 

Nonfarm nonresidential.................................................................................... 

Construction and development 

Home equity lines............................................................................................. 

Commercial & industrial loans ................................................................................ 

Loans to individuals................................................................................................. 

Credit cards ...................................................................................................... 

Farm loans............................................................................................................... 

Other loans & leases............................................................................................... 

Less: Unearned income .......................................................................................... 

Total loans & leases ................................................................................................ 

Less: Reserve for losses......................................................................................... 

Net loans and leases............................................................................................... 

Securities................................................................................................................. 

Other real estate owned.......................................................................................... 

Goodwill and other intangibles ............................................................................... 

All other assets........................................................................................................ 

Total liabilities and capital .............................................................................................. 

Deposits................................................................................................................... 

Domestic office deposits.................................................................................. 

Foreign office deposits..................................................................................... 

Other borrowed funds ............................................................................................. 

Subordinated debt................................................................................................... 

All other liabilities .................................................................................................... 

Equity capital ........................................................................................................... 

Loans and leases 30-89 days past due......................................................................... 

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

Restructured loans and leases ...................................................................................... 

Mortgage-backed securities .......................................................................................... 

Earning assets................................................................................................................ 

FHLB Advances.............................................................................................................. 

Unused loan commitments............................................................................................. 

Trust assets..................................................................................................................... 

Assets securitized and sold**......................................................................................... 

Notional amount of derivatives**.................................................................................... 

4th Quarter 

2009 

8,012 

2,063,101 

$13,109,456 

4,462,695 

1,916,714 

1,091,386 

451,511 

661,445 

1,220,793 

1,060,327 

422,095 

59,584 

486,540 

3,770 

7,286,169 

227,480 

7,058,689 

2,500,382 

41,357 

428,428 

3,080,600 

13,109,456 

9,226,786 

7,696,812 

1,529,974 

1,781,674 

156,989 

476,056 

1,467,950 

140,430 

391,310 

57,769 

1,395,282 

11,269,868 

533,113 

5,968,813 

18,703,448 

1,817,388 

213,568,137 

3rd Quarter 4th Quarter %Change 

2009 2008 08Q4-09Q4 

8,099 

2,069,470 

$13,246,624 

4,527,028 

1,927,878 

1,090,000 

492,995 

667,473 

1,275,341 

1,040,203 

392,971 

60,024 

515,030 

2,613 

7,415,012 

220,499 

7,194,513 

2,396,682 

37,143 

424,685 

3,193,601 

13,246,624 

9,101,062 

7,553,257 

1,547,805 

1,997,445 

161,256 

524,071 

1,462,790 

142,617 

366,991 

50,711 

1,350,462 

11,408,711 

575,700 

6,125,553 

18,582,941 

1,857,467 

206,393,163 

8,305 -3.5 

2,151,758 -4.1 

$13,841,174 -5.3 

4,705,261 -5.2 

2,045,194 -6.3 

1,066,230 2.4 

590,920 -23.6 

668,286 -1.0 

1,493,975 -18.3 

1,088,889 -2.6 

444,692 -5.1 

59,801 -0.4 

528,463 -7.9 

2,878 31.0 

7,873,511 -7.5 

173,878 30.8 

7,699,633 -8.3 

2,035,272 22.9 

26,672 55.1 

421,607 1.6 

3,657,990 -15.8 

13,841,174 -5.3 

9,035,718 2.1 

7,496,418 2.7 

1,539,300 -0.6 

2,569,896 -30.7 

185,464 -15.4 

759,005 -37.3 

1,291,091 13.7 

159,340 -11.9 

233,641 67.5 

23,666 144.1 

1,299,759 7.3 

11,747,083 -4.1 

796,379 -33.1 

7,151,429 -16.5 

17,183,189 8.8 

1,908,617 -4.8 

212,114,632 0.7 

INCOME DATA 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Full Year Full Year 4th Quarter 4th Quarter %Change 

2009 2008 %Change 2009 2008 08Q4-09Q4 

$541,180 $603,301 -10.3 $130,077 $150,784 -13.7 

145,372 245,576 -40.8 31,373 53,813 -41.7 

395,808 357,725 10.7 98,704 96,972 1.8 

247,683 176,196 40.6 61,101 71,128 -14.1 

260,532 207,709 25.4 62,367 40,711 53.2 

384,563 368,310 4.4 98,351 114,600 -14.2 

-1,443 -15,438 N/M 158 -8,574 N/M 

5,521 6,299 -12.4 551 -14,145 N/M 

-3,803 5,358 N/M -177 4,701 N/M 

12,527 4,550 175.3 914 -37,773 N/M 

186,821 100,357 86.2 52,984 38,625 37.2 

47,162 51,088 -7.7 13,748 8,516 61.4 

-34,635 -46,539 N/M -12,834 -46,289 N/M 

16,960 9,554 77.5 948 -36,917 N/M 

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

FDIC QUARTERLY 5 2010, VOLUME 4, NO. 1 
TABLE III-A. Full Year 2009, All FDIC-Insured Institutions 

FULL YEAR 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit 

Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,012 23 4 1,564 4,456 767 82 289 771 56 

Commercial banks..................................... 6,839 19 4 1,559 3,978 203 66 258 707 45 

Savings institutions ................................... 1,173 4 0 5 478 564 16 31 64 11 

Total assets (in billions).................................... $13,109.5 $521.5 $3,107.1 $181.6 $4,550.5 $809.2 $96.3 $38.0 $116.3 $3,688.8 

Commercial banks..................................... 11,846.1 498.3 3,107.1 180.9 4,061.8 203.6 51.0 32.8 99.5 3,611.2 

Savings institutions ................................... 1,263.3 23.3 0.0 0.7 488.7 605.7 45.4 5.2 16.8 77.6 

Total deposits (in billions)................................. 9,226.8 270.0 2,024.5 148.6 3,464.2 527.8 78.4 28.4 96.5 2,588.4 

Commercial banks..................................... 8,333.2 256.2 2,024.5 148.0 3,129.6 99.8 38.9 25.0 83.1 2,528.0 

Savings institutions ................................... 893.6 13.8 0.0 0.6 334.6 428.0 39.5 3.4 13.4 60.4 

Net income (in millions).................................... 12,527 -1,425 2,407 1,459 -16,573 5,196 447 282 919 19,814 

Commercial banks..................................... 10,752 -2,206 2,407 1,455 -15,691 3,083 326 164 878 20,334 

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

Performance Ratios (%) 

1,775 781 0 4 -882 2,112 121 118 41 -520 

Yield on earning assets.................................... 4.75 11.42 3.86 5.64 5.07 4.89 5.82 4.05 5.42 4.12 

Cost of funding earning assets ........................ 1.28 1.36 0.94 1.72 1.57 1.84 1.60 1.21 1.64 1.00 

Net interest margin.................................... 3.47 10.06 2.92 3.92 3.50 3.05 4.22 2.84 3.78 3.12 

Noninterest income to assets........................... 1.96 5.41 1.91 0.65 1.49 1.14 2.45 7.47 0.89 2.31 

Noninterest expense to assets......................... 2.89 5.76 2.59 2.75 3.15 1.84 2.93 8.63 3.01 2.63 

Loan and lease loss provision to assets.......... 1.86 8.38 1.48 0.57 1.89 0.97 2.66 0.22 0.39 1.60 

Net operating income to assets ....................... 0.13 -0.37 0.27 0.80 -0.37 0.68 0.50 0.72 0.81 0.47 

Pretax return on assets .................................... 0.14 -0.52 0.02 0.95 -0.44 1.07 0.85 1.13 0.97 0.71 

Return on assets............................................... 0.09 -0.29 0.08 0.83 -0.37 0.65 0.50 0.74 0.81 0.51 

Return on equity ............................................... 0.90 -1.21 0.92 7.48 -3.53 7.38 4.76 4.22 7.23 4.70 

Net charge-offs to loans and leases................ 2.49 9.77 2.97 0.64 2.00 1.21 2.73 0.78 0.53 2.19 

Loan and lease loss provision to 

net charge-offs .......................................... 132.58 120.45 134.78 135.20 134.68 132.30 123.85 105.17 126.97 137.71 

Efficiency ratio .................................................. 55.53 39.41 58.88 63.99 62.64 46.11 44.96 82.90 68.69 51.68 

% of unprofitable institutions............................ 29.52 34.78 75.00 11.25 41.47 21.25 15.85 19.03 11.15 23.21 

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

Condition Ratios (%) 

41.04 30.43 25.00 40.60 38.06 57.89 46.34 36.68 42.80 55.36 

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

Loss allowance to: 

85.97 80.35 84.68 91.01 88.47 92.35 94.63 87.87 91.37 82.69 

Loans and leases ...................................... 3.12 9.33 4.34 1.50 2.50 1.43 3.00 1.59 1.32 2.89 

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

Noncurrent assets plus 

58.13 277.70 58.58 81.74 53.37 31.55 173.80 83.08 74.29 45.17 

other real estate owned to assets............. 3.32 2.31 2.75 1.55 3.86 3.12 1.42 0.69 1.34 3.56 

Equity capital ratio............................................ 11.04 24.58 8.75 10.96 10.53 9.49 11.11 17.74 11.29 11.95 

Core capital (leverage) ratio ............................ 8.65 19.62 6.98 9.96 8.74 8.95 10.56 15.64 10.68 8.22 

Tier 1 risk-based capital ratio........................... 11.68 14.25 11.28 13.55 11.05 18.57 14.26 35.90 17.48 10.77 

Total risk-based capital ratio ............................ 14.34 16.51 14.35 14.67 13.27 19.55 16.04 36.75 18.62 14.14 

Net loans and leases to deposits..................... 76.50 120.53 51.23 78.06 88.06 90.55 93.46 33.34 67.00 73.57 

Net loans to total assets .................................. 53.84 62.41 33.38 63.84 67.04 59.06 76.02 24.91 55.60 51.62 

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

Structural Changes 

58.71 46.28 30.96 81.79 74.22 65.14 80.23 74.25 82.97 60.68 

New charters ............................................. 31 0 0 1 7 1 0 19 1 2 

Institutions absorbed by mergers ............. 179 1 0 24 137 4 0 1 7 5 

Failed institutions ...................................... 

PRIOR FULL YEARS 

(The way it was...) 

140 0 0 4 123 8 0 0 5 0 

Number of institutions ............................. 2008 8,305 26 5 1,559 4,753 839 91 279 709 44 

..................................... 2006 8,680 26 4 1,634 4,713 817 123 411 895 57 

..................................... 2004 8,976 34 5 1,731 4,423 990 132 466 1,120 75 

Total assets (in billions)........................... 2008 $13,841.2 $513.0 $3,410.1 $168.8 $5,461.2 $997.1 $122.2 $34.4 $94.8 $3,039.6 

..................................... 2006 11,861.4 408.4 2,337.2 149.3 4,904.6 1,445.0 109.9 42.2 119.6 2,345.4 

..................................... 2004 10,107.4 383.0 1,881.3 138.7 3,301.4 1,505.0 104.1 52.0 143.3 2,598.4 

Return on assets (%) ............................... 2008 0.03 1.70 0.25 1.00 -0.13 -0.48 -0.01 1.43 0.82 -0.09 

..................................... 2006 1.28 4.19 1.01 1.23 1.28 0.94 1.75 1.54 1.04 1.26 

..................................... 2004 1.28 4.03 0.76 1.22 1.29 1.17 1.66 1.68 1.10 1.32 

Net charge-offs to loans & leases (%) .... 2008 1.29 5.94 1.43 0.41 1.14 0.86 1.74 0.35 0.35 0.74 

..................................... 2006 0.39 3.48 0.48 0.17 0.22 0.15 1.40 0.42 0.20 0.22 

..................................... 2004 

Noncurrent assets plus 

0.56 4.66 0.91 0.22 0.30 0.12 1.57 0.59 0.29 0.25 

OREO to assets (%) ......................... 2008 1.91 2.08 1.59 1.17 2.34 2.55 1.31 0.35 1.05 1.35 

..................................... 2006 0.54 1.37 0.40 0.67 0.56 0.56 0.85 0.20 0.56 0.46 

..................................... 2004 0.53 1.50 0.57 0.68 0.51 0.43 0.53 0.31 0.59 0.45 

Equity capital ratio (%)............................. 2008 9.33 20.47 7.01 10.99 10.04 7.45 9.85 18.63 11.28 9.11 

..................................... 2006 10.52 22.88 7.75 10.73 11.16 9.91 14.16 21.12 10.97 9.78 

..................................... 2004 10.28 20.54 8.05 10.78 10.10 10.53 11.36 17.47 10.79 10.23 

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

FDIC QUARTERLY 6 2010, VOLUME 4, NO. 1 
 

Quarterly Banking Profile 

TABLE III-A. Full Year 2009, All FDIC-Insured Institutions 

FULL YEAR 

(The way it is...) 

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

All Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less than 

$100 

Million 

$100 

Million to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than 

$10 Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,012 2,845 4,495 565 107 986 1,121 1,647 1,879 1,660 719 

Commercial banks........................................... 6,839 2,525 3,800 429 85 518 992 1,355 1,780 1,540 654 

Savings institutions ......................................... 1,173 320 695 136 22 468 129 292 99 120 65 

Total assets (in billions).......................................... $13,109.5 $158.7 $1,355.8 $1,462.7 $10,132.2 $2,588.3 $3,427.9 $2,934.5 $1,145.8 $785.1 $2,227.9 

Commercial banks........................................... 11,846.1 141.3 1,112.6 1,120.5 9,471.7 1,895.5 3,303.7 2,803.9 1,094.9 695.7 2,052.4 

Savings institutions ......................................... 1,263.3 17.4 243.2 342.2 660.5 692.9 124.2 130.6 50.8 89.4 175.5 

Total deposits (in billions)....................................... 9,226.8 132.4 1,106.6 1,107.9 6,880.0 1,749.4 2,464.5 2,020.1 867.7 606.3 1,518.8 

Commercial banks........................................... 8,333.2 118.9 918.3 850.6 6,445.4 1,272.5 2,373.1 1,922.7 829.2 535.0 1,400.7 

Savings institutions ......................................... 893.6 13.5 188.3 257.3 434.5 476.9 91.4 97.5 38.5 71.3 118.1 

Net income (in millions).......................................... 12,527 25 -128 -4,206 16,836 -711 56 6,042 8,827 3,075 -4,761 

Commercial banks........................................... 10,752 77 -163 -3,811 14,649 -1,368 470 6,823 8,824 2,681 -6,679 

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

Performance Ratios (%) 

1,775 -52 35 -395 2,187 657 -414 -781 3 393 1,917 

Yield on earning assets.......................................... 4.75 5.59 5.54 5.18 4.56 5.17 4.42 4.13 5.55 5.12 5.05 

Cost of funding earning assets .............................. 1.28 1.75 1.90 1.74 1.11 1.46 1.22 1.12 1.08 1.36 1.42 

Net interest margin.......................................... 3.47 3.84 3.65 3.44 3.45 3.71 3.19 3.01 4.46 3.75 3.63 

Noninterest income to assets................................. 1.96 0.99 1.02 1.40 2.17 1.93 1.86 2.11 3.10 1.60 1.49 

Noninterest expense to assets............................... 2.89 3.74 3.28 3.09 2.80 2.83 2.73 2.87 3.88 3.32 2.61 

Loan and lease loss provision to assets................ 1.86 0.69 1.08 1.67 2.01 1.91 1.90 1.62 1.89 1.22 2.30 

Net operating income to assets ............................. 0.13 0.00 -0.02 -0.27 0.20 0.27 -0.07 0.15 0.80 0.35 -0.17 

Pretax return on assets .......................................... 0.14 0.08 0.02 -0.27 0.21 -0.04 0.02 0.29 1.20 0.52 -0.35 

Return on assets..................................................... 0.09 0.02 -0.01 -0.29 0.16 -0.03 0.00 0.20 0.78 0.39 -0.22 

Return on equity ..................................................... 0.90 0.13 -0.10 -2.72 1.56 -0.22 0.01 2.40 7.52 3.91 -2.08 

Net charge-offs to loans and leases...................... 2.49 0.86 1.19 1.88 2.84 2.75 2.27 2.34 2.39 1.32 3.32 

Loan and lease loss provision to net charge-offs.. 132.58 127.96 131.64 131.02 132.85 128.81 141.15 137.50 117.75 138.08 127.32 

Efficiency ratio ........................................................ 55.53 82.01 73.32 63.09 52.29 52.82 55.46 57.48 54.02 63.22 54.69 

% of unprofitable institutions.................................. 29.52 27.59 29.45 37.17 42.99 27.18 54.50 25.32 19.64 18.31 55.08 

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

Condition Ratios (%) 

41.04 39.96 41.67 42.48 35.51 56.39 29.71 40.74 40.45 43.92 33.24 

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

Loss allowance to: 

85.97 90.72 91.21 90.13 84.59 85.92 83.24 86.77 86.79 90.11 87.27 

Loans and leases ............................................. 3.12 1.59 1.75 2.18 3.56 3.39 2.98 3.30 2.70 2.04 3.58 

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

Noncurrent assets plus 

58.13 63.31 49.47 48.40 60.34 83.99 48.19 56.61 46.34 54.98 65.95 

other real estate owned to assets.................... 3.32 2.22 3.27 3.59 3.31 2.31 4.04 3.18 4.28 3.03 3.19 

Equity capital ratio................................................... 11.04 12.02 9.94 10.78 11.21 13.24 11.68 8.61 10.71 10.33 11.13 

Core capital (leverage) ratio ................................... 8.65 11.60 9.42 9.32 8.40 10.17 7.94 7.07 9.23 9.31 9.55 

Tier 1 risk-based capital ratio.................................. 11.68 17.40 13.14 12.87 11.25 13.52 10.44 10.08 10.65 12.66 13.99 

Total risk-based capital ratio ................................... 14.34 18.49 14.34 14.23 14.29 15.86 13.75 13.35 12.81 14.39 15.72 

Net loans and leases to deposits............................ 76.50 73.49 81.93 84.87 74.34 77.12 79.68 68.79 84.18 84.07 73.47 

Net loans to total assets ......................................... 53.84 61.29 66.87 64.28 50.48 52.13 57.29 47.36 63.75 64.92 50.09 

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

Structural Changes 

58.71 83.40 81.56 75.10 52.90 59.54 64.27 53.04 70.69 76.50 44.24 

New charters ................................................... 31 25 3 1 2 3 11 7 0 6 4 

Institutions absorbed by mergers ................... 179 78 81 11 9 27 25 36 48 29 14 

Failed institutions ............................................ 

PRIOR FULL YEARS 

(The way it was...) 

140 25 88 22 5 6 45 30 15 9 35 

Number of institutions ................................... 2008 8,305 3,132 4,498 561 114 1,015 1,180 1,705 1,935 1,700 770 

........................................... 2006 8,680 3,632 4,399 530 119 1,092 1,218 1,826 2,018 1,753 773 

........................................... 2004 8,976 4,093 4,286 480 117 1,129 1,219 1,951 2,094 1,834 749 

Total assets (in billions)................................. 2008 $13,841.2 $170.9 $1,354.7 $1,489.8 $10,825.8 $2,594.2 $3,745.9 $3,264.3 $1,057.2 $780.9 $2,398.7 

........................................... 2006 11,861.4 189.9 1,290.0 1,397.5 8,984.0 2,215.7 2,911.4 2,746.2 859.8 652.3 2,476.1 

........................................... 2004 10,107.4 211.7 1,199.6 1,318.5 7,377.6 2,856.4 2,177.1 2,387.6 768.2 603.1 1,315.1 

Return on assets (%) ..................................... 2008 0.03 0.25 0.24 -0.30 0.05 0.25 -0.14 0.29 0.57 0.51 -0.63 

........................................... 2006 1.28 0.92 1.16 1.22 1.31 1.27 1.31 1.10 1.76 1.23 1.29 

........................................... 2004 1.28 1.00 1.19 1.45 1.27 1.37 1.34 0.88 1.55 1.26 1.60 

Net charge-offs to loans & leases (%) .......... 2008 1.29 0.46 0.67 1.10 1.44 1.44 1.01 1.24 1.60 0.68 1.74 

........................................... 2006 0.39 0.18 0.16 0.20 0.47 0.72 0.19 0.28 0.55 0.21 0.43 

........................................... 2004 

Noncurrent assets plus 

0.56 0.28 0.27 0.39 0.65 0.87 0.31 0.41 0.74 0.27 0.60 

OREO to assets (%) ............................... 2008 1.91 1.66 2.16 2.45 1.80 1.20 2.02 1.93 2.28 1.80 2.33 

........................................... 2006 0.54 0.73 0.59 0.52 0.53 0.52 0.33 0.57 1.05 0.62 0.56 

........................................... 2004 0.53 0.74 0.56 0.51 0.53 0.58 0.35 0.55 0.81 0.61 0.51 

Equity capital ratio (%)................................... 2008 9.33 12.87 10.00 10.65 9.01 11.14 9.56 8.07 9.49 9.95 8.45 

........................................... 2006 10.52 13.01 10.39 10.97 10.42 12.47 10.05 9.07 10.64 10.42 10.92 

........................................... 2004 10.28 11.82 10.19 10.87 10.15 11.20 8.74 9.36 10.62 10.78 12.10 

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

FDIC QUARTERLY 7 2010, VOLUME 4, NO. 1 
 

TABLE IV-A. Fourth Quarter 2009, All FDIC-Insured Institutions 

FOURTH QUARTER 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit 

Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,012 23 4 1,564 4,456 767 82 289 771 56 

Commercial banks....................................................... 6,839 19 4 1,559 3,978 203 66 258 707 45 

Savings institutions ..................................................... 1,173 4 0 5 478 564 16 31 64 11 

Total assets (in billions) ...................................................... $13,109.5 $521.5 $3,107.1 $181.6 $4,550.5 $809.2 $96.3 $38.0 $116.3 $3,688.8 

Commercial banks....................................................... 11,846.1 498.3 3,107.1 180.9 4,061.8 203.6 51.0 32.8 99.5 3,611.2 

Savings institutions ..................................................... 1,263.3 23.3 0.0 0.7 488.7 605.7 45.4 5.2 16.8 77.6 

Total deposits (in billions)................................................... 9,226.8 270.0 2,024.5 148.6 3,464.2 527.8 78.4 28.4 96.5 2,588.4 

Commercial banks....................................................... 8,333.2 256.2 2,024.5 148.0 3,129.6 99.8 38.9 25.0 83.1 2,528.0 

Savings institutions ..................................................... 893.6 13.8 0.0 0.6 334.6 428.0 39.5 3.4 13.4 60.4 

Net income (in millions) ...................................................... 914 697 2,307 261 -6,940 1,349 223 119 221 2,677 

Commercial banks....................................................... 278 583 2,307 261 -6,549 539 216 75 199 2,646 

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

Performance Ratios (annualized, %) 

636 114 0 0 -391 809 7 44 22 31 

Yield on earning assets...................................................... 4.60 10.94 3.63 5.54 5.00 4.73 5.65 3.84 5.29 3.95 

Cost of funding earning assets .......................................... 1.11 1.30 0.81 1.54 1.36 1.65 1.42 1.06 1.47 0.85 

Net interest margin...................................................... 3.49 9.64 2.82 4.00 3.64 3.07 4.23 2.78 3.82 3.11 

Noninterest income to assets............................................. 1.90 5.53 1.63 0.64 1.43 1.47 2.55 8.10 0.91 2.31 

Noninterest expense to assets........................................... 2.99 5.77 2.53 2.86 3.28 1.93 2.92 8.61 3.08 2.84 

Loan and lease loss provision to assets............................ 1.86 6.84 1.25 0.83 2.11 1.05 2.20 0.29 0.52 1.66 

Net operating income to assets ......................................... 0.03 0.54 0.28 0.57 -0.58 0.83 0.93 1.18 0.73 0.24 

Pretax return on assets ...................................................... 0.04 0.68 0.25 0.62 -0.76 1.10 1.41 1.71 0.87 0.43 

Return on assets................................................................. 0.03 0.55 0.29 0.58 -0.61 0.67 0.93 1.25 0.77 0.29 

Return on equity ................................................................. 0.25 2.19 3.41 5.23 -5.77 7.15 8.41 7.02 6.73 2.44 

Net charge-offs to loans and leases.................................. 2.89 9.50 3.18 1.01 2.50 1.23 2.63 0.77 0.80 2.80 

Loan and lease loss provision to net charge-offs.............. 115.32 105.27 111.63 124.89 122.02 143.31 106.56 148.00 114.00 111.29 

Efficiency ratio .................................................................... 57.75 40.16 62.17 65.60 63.93 44.12 44.22 80.47 69.36 56.00 

% of unprofitable institutions.............................................. 32.68 26.09 25.00 20.14 41.83 23.34 24.39 30.80 17.12 21.43 

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

Structural Changes 

50.34 69.57 75.00 50.26 50.54 55.15 53.66 38.06 47.21 62.50 

New charters ............................................................... 3 0 0 0 1 0 0 2 0 0 

Institutions absorbed by mergers ............................... 43 0 0 9 28 2 0 0 2 2 

Failed institutions ........................................................ 

PRIOR FOURTH QUARTERS 

(The way it was...) 

45 0 0 1 40 3 0 0 1 0 

Return on assets (%) ..................................................2008 -1.10 -0.21 -0.04 0.67 -1.83 -1.80 -1.68 0.62 0.58 -1.07 

........................................................2006 1.20 3.43 0.96 1.06 1.20 0.91 1.54 2.17 1.00 1.21 

........................................................2004 1.25 3.72 0.77 1.04 1.25 1.21 1.50 1.74 0.99 1.25 

Net charge-offs to loans & leases (%) .......................2008 1.95 6.96 1.85 0.74 1.89 1.80 2.14 0.52 0.56 1.16 

........................................................2006 0.47 3.88 0.36 0.30 0.35 0.19 1.62 0.32 0.28 0.29 

........................................................2004 0.60 4.64 1.10 0.31 0.35 0.15 1.44 0.54 0.36 0.24 

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

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

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

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

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

exceed 25 percent of total assets. 

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

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

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

All Other < $1 billion - Institutions with assets less than $1 billion that do not meet any of the definitions above; they have significant lending activity with no identified asset concentrations. 

All Other > $1 billion - Institutions with assets greater than $1 billion that do not meet any of the definitions above; they have significant lending activity with no identified asset 

concentrations. 

FDIC QUARTERLY 8 2010, VOLUME 4, NO. 1 
 

Quarterly Banking Profile 

TABLE IV-A. Fourth Quarter 2009, All FDIC-Insured Institutions 

FOURTH QUARTER 

(The way it is...) 

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

All Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than 

$10 Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,012 2,845 4,495 565 107 986 1,121 1,647 1,879 1,660 719 

Commercial banks................................... 6,839 2,525 3,800 429 85 518 992 1,355 1,780 1,540 654 

Savings institutions ................................. 1,173 320 695 136 22 468 129 292 99 120 65 

Total assets (in billions).................................. $13,109.5 $158.7 $1,355.8 $1,462.7 $10,132.2 $2,588.3 $3,427.9 $2,934.5 $1,145.8 $785.1 $2,227.9 

Commercial banks................................... 11,846.1 141.3 1,112.6 1,120.5 9,471.7 1,895.5 3,303.7 2,803.9 1,094.9 695.7 2,052.4 

Savings institutions ................................. 1,263.3 17.4 243.2 342.2 660.5 692.9 124.2 130.6 50.8 89.4 175.5 

Total deposits (in billions)............................... 9,226.8 132.4 1,106.6 1,107.9 6,880.0 1,749.4 2,464.5 2,020.1 867.7 606.3 1,518.8 

Commercial banks................................... 8,333.2 118.9 918.3 850.6 6,445.4 1,272.5 2,373.1 1,922.7 829.2 535.0 1,400.7 

Savings institutions ................................. 893.6 13.5 188.3 257.3 434.5 476.9 91.4 97.5 38.5 71.3 118.1 

Net income (in millions).................................. 914 -103 -1,088 -1,020 3,125 1,676 -3,269 963 2,384 647 -1,486 

Commercial banks................................... 278 -83 -1,123 -979 2,464 1,693 -3,182 1,046 2,336 530 -2,145 

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

Performance Ratios (annualized, %) 

636 -20 35 -41 662 -17 -87 -83 47 117 659 

Yield on earning assets.................................. 4.60 5.48 5.41 5.03 4.41 5.05 4.34 4.01 5.38 5.04 4.71 

Cost of funding earning assets ...................... 1.11 1.56 1.68 1.52 0.96 1.28 1.06 0.96 0.94 1.18 1.24 

Net interest margin.................................. 3.49 3.92 3.73 3.51 3.45 3.76 3.28 3.04 4.44 3.86 3.47 

Noninterest income to assets......................... 1.90 0.99 1.03 1.46 2.09 2.04 1.71 1.81 3.31 1.62 1.51 

Noninterest expense to assets....................... 2.99 3.93 3.40 3.11 2.91 2.96 3.03 2.71 4.08 3.37 2.65 

Loan and lease loss provision to assets........ 1.86 0.87 1.42 1.76 1.95 1.83 1.98 1.75 1.83 1.35 2.04 

Net operating income to assets ..................... 0.03 -0.27 -0.33 -0.19 0.11 0.29 -0.43 0.07 0.85 0.35 -0.15 

Pretax return on assets .................................. 0.04 -0.24 -0.36 -0.34 0.16 0.42 -0.52 0.09 1.26 0.39 -0.33 

Return on assets............................................. 0.03 -0.26 -0.32 -0.28 0.12 0.26 -0.38 0.13 0.84 0.33 -0.27 

Return on equity ............................................. 0.25 -2.15 -3.21 -2.59 1.10 1.98 -3.25 1.52 7.73 3.20 -2.42 

Net charge-offs to loans and leases.............. 

Loan and lease loss provision to net 

2.89 1.15 1.76 2.35 3.22 2.93 2.73 2.94 2.68 1.55 3.81 

charge-offs .............................................. 115.32 121.45 117.62 113.12 115.35 116.64 122.50 121.11 103.06 130.93 102.33 

Efficiency ratio ................................................ 57.75 85.03 73.75 61.66 54.97 53.16 61.10 58.86 54.86 64.85 56.97 

% of unprofitable institutions.......................... 32.68 34.02 31.32 35.04 41.12 24.85 54.24 31.03 26.18 23.86 50.90 

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

Structural Changes 

50.34 48.01 50.81 57.17 56.07 60.24 43.35 47.91 52.47 50.66 46.87 

New charters ........................................... 3 1 2 0 0 0 1 2 0 0 0 

Institutions absorbed by mergers ........... 43 20 19 0 4 3 4 9 14 8 5 

Failed institutions .................................... 

PRIOR FOURTH QUARTERS 

(The way it was...) 

45 10 24 9 2 0 16 10 5 4 10 

Return on assets (%) ............................. 2008 -1.10 -0.46 -0.41 -1.76 -1.10 -0.76 -1.65 -0.26 -0.45 0.00 -2.39 

................................... 2006 1.20 0.68 1.08 1.10 1.24 1.26 1.21 1.19 1.82 1.10 0.94 

................................... 2004 1.25 0.89 1.14 1.35 1.25 1.37 1.19 0.85 1.66 1.18 1.59 

Net charge-offs to loans & leases (%) .. 2008 1.95 0.85 1.20 1.83 2.11 1.87 1.63 1.89 2.31 0.98 2.79 

................................... 2006 0.47 0.31 0.26 0.26 0.55 0.94 0.26 0.38 0.70 0.25 0.40 

................................... 2004 0.60 0.39 0.34 0.45 0.69 0.88 0.33 0.59 0.70 0.34 0.59 

* Regions: 

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

U.S. Virgin Islands 

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

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

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

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

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

FDIC QUARTERLY 9 2010, VOLUME 4, NO. 1 
TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

December 31, 2009 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 ....................................... 2.22 3.76 3.28 1.24 1.80 2.11 1.32 1.64 1.99 2.61 

Construction and development................................. 2.61 0.00 3.88 1.61 2.62 3.47 2.93 1.81 2.01 2.43 

Nonfarm nonresidential............................................. 1.24 0.00 0.83 1.11 1.27 1.28 1.39 0.98 1.49 1.16 

Multifamily residential real estate ............................. 1.20 0.00 0.74 0.78 1.40 1.27 0.97 1.47 1.36 0.95 

Home equity loans..................................................... 1.32 3.16 1.85 0.56 0.90 1.34 0.95 1.08 0.93 1.42 

Other 1-4 family residential....................................... 3.18 4.15 4.96 2.04 2.49 2.22 1.69 2.18 2.42 3.78 

Commercial and industrial loans ..................................... 0.95 4.52 0.52 1.56 1.02 0.99 1.52 1.13 1.69 0.75 

Loans to individuals.......................................................... 2.52 2.98 2.33 2.18 2.06 1.89 2.19 1.84 2.45 2.66 

Credit card loans ....................................................... 2.82 2.87 3.27 3.45 2.19 3.01 1.37 1.98 2.73 2.90 

Other loans to individuals ......................................... 2.33 3.88 1.97 2.12 2.04 1.53 2.47 1.82 2.45 2.61 

All other loans and leases (including farm) ..................... 0.56 0.01 0.29 0.70 0.82 0.35 0.34 0.82 0.69 0.64 

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

Percent of Loans Noncurrent** 

1.93 2.83 2.19 1.21 1.62 2.07 1.89 1.55 1.92 2.11 

All real estate loans .......................................................... 7.10 5.44 10.65 2.22 5.83 4.78 2.29 2.39 2.03 9.28 

Construction and development................................. 15.95 0.00 18.39 9.83 16.14 15.88 10.59 4.25 5.82 15.73 

Nonfarm nonresidential............................................. 3.82 0.00 4.17 2.52 3.53 3.34 2.80 2.42 2.27 5.28 

Multifamily residential real estate ............................. 4.44 0.00 4.00 2.69 3.93 3.26 0.01 2.44 1.46 7.95 

Home equity loans..................................................... 1.83 4.65 2.04 0.59 1.10 2.18 1.25 0.79 0.82 2.35 

Other 1-4 family residential....................................... 9.31 5.95 17.69 1.64 5.49 4.88 3.03 2.32 1.69 12.91 

Commercial and industrial loans ..................................... 3.44 4.55 6.30 2.35 2.63 1.94 0.90 1.33 1.73 3.23 

Loans to individuals.......................................................... 2.20 3.61 2.53 0.98 1.34 1.34 1.60 0.91 0.82 1.39 

Credit card loans ....................................................... 3.46 3.54 4.00 4.27 2.98 3.78 1.58 1.28 1.08 3.29 

Other loans to individuals ......................................... 1.37 4.24 1.96 0.81 1.03 0.57 1.60 0.87 0.81 0.95 

All other loans and leases (including farm) ..................... 1.65 0.02 2.83 0.74 1.63 0.47 0.16 0.64 0.69 1.13 

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

Percent of Loans Charged-off (net, YTD) 

5.37 3.36 7.39 1.83 4.69 4.54 1.71 1.91 1.77 6.40 

All real estate loans .......................................................... 2.02 2.52 2.99 0.53 1.90 1.08 2.04 0.49 0.38 2.26 

Construction and development................................. 5.40 0.00 3.66 3.12 5.76 4.70 4.39 1.35 1.67 4.50 

Nonfarm nonresidential............................................. 0.77 0.00 1.37 0.64 0.83 0.79 0.61 0.20 0.35 0.51 

Multifamily residential real estate ............................. 1.11 0.00 1.04 0.41 1.32 1.01 0.06 1.44 0.20 0.45 

Home equity loans..................................................... 2.90 0.00 3.28 0.60 1.52 3.82 2.19 0.37 0.43 3.81 

Other 1-4 family residential....................................... 1.72 3.19 3.66 0.33 1.21 0.80 1.88 0.53 0.27 1.95 

Commercial and industrial loans ..................................... 2.36 15.47 2.55 1.44 2.20 1.59 5.43 0.90 1.06 1.53 

Loans to individuals.......................................................... 5.37 10.14 4.73 1.15 2.69 3.87 2.77 1.71 1.00 3.62 

Credit card loans ....................................................... 9.10 9.47 8.26 10.39 7.72 10.46 5.29 8.97 3.64 9.73 

Other loans to individuals ......................................... 2.97 15.10 3.28 0.64 1.81 1.67 1.99 0.49 0.93 2.24 

All other loans and leases (including farm) ..................... 1.24 0.01 1.44 0.00 1.52 1.17 1.31 0.79 0.58 1.15 

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

Loans Outstanding (in billions) 

2.49 9.77 2.96 0.64 2.00 1.21 2.71 0.78 0.53 2.19 

All real estate loans .......................................................... $4,462.7 $0.1 $550.3 $68.8 $2,156.2 $450.0 $20.0 $6.3 $47.2 $1,163.7 

Construction and development................................. 451.5 0.0 9.6 4.5 337.3 8.2 0.5 0.5 3.0 87.9 

Nonfarm nonresidential............................................. 1,091.4 0.0 31.9 19.8 802.6 25.8 0.8 2.0 11.5 197.0 

Multifamily residential real estate ............................. 211.4 0.0 41.2 1.5 127.4 11.0 0.1 0.2 0.9 29.2 

Home equity loans..................................................... 661.4 0.0 136.3 1.5 225.2 28.2 10.1 0.2 2.0 258.0 

Other 1-4 family residential....................................... 1,916.7 0.1 282.3 18.2 620.3 376.1 8.4 3.1 26.4 581.8 

Commercial and industrial loans ..................................... 1,220.8 28.7 201.4 15.3 585.8 10.6 4.4 1.3 6.5 366.7 

Loans to individuals.......................................................... 1,060.3 297.4 183.5 6.5 224.1 21.6 50.5 1.5 7.4 267.9 

Credit card loans ....................................................... 422.1 266.4 51.1 0.3 35.5 5.2 12.8 0.1 0.2 50.4 

Other loans to individuals ......................................... 638.2 31.0 132.4 6.2 188.6 16.4 37.6 1.3 7.2 217.5 

All other loans and leases (including farm) ..................... 546.1 32.7 150.9 27.1 163.7 2.7 1.3 0.6 4.5 162.8 

Total loans and leases (plus unearned income).............. 

Memo: Other Real Estate Owned (in millions) 

7,289.9 359.0 1,086.1 117.7 3,129.8 484.9 76.2 9.6 65.6 1,961.1 

All other real estate owned............................................... 41,357.1 -35.9 2,970.0 641.3 28,498.2 3,175.3 65.9 71.1 389.9 5,581.4 

Construction and development................................. 16,999.7 0.0 754.0 228.3 14,426.7 398.9 11.2 24.0 94.0 1,062.5 

Nonfarm nonresidential............................................. 7,054.9 0.0 148.0 194.4 5,761.4 145.1 4.5 21.8 108.5 671.1 

Multifamily residential real estate ............................. 1,747.0 0.0 69.0 26.9 1,210.8 42.7 0.9 1.4 21.1 374.3 

1-4 family residential ................................................. 12,625.6 0.3 1,231.0 142.1 6,259.3 2,259.1 48.1 21.1 158.2 2,506.4 

Farmland.................................................................... 233.2 0.0 0.0 49.2 163.0 1.9 1.2 2.8 8.0 7.0 

GNMA properties....................................................... 2,561.3 0.0 596.0 0.3 670.8 334.1 0.0 0.0 0.0 960.1 

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

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

FDIC QUARTERLY 10 2010, VOLUME 4, NO. 1 
Quarterly Banking Profile 

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

December 31, 2009 All Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less than 

$100 

Million 

$100 

Million to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than 

$10 Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate .............................. 2.22 1.92 1.76 1.45 2.52 1.79 2.54 2.30 1.97 1.96 2.34 

Construction and development........................ 2.61 2.27 2.52 2.21 2.84 3.35 2.34 2.83 2.26 2.21 3.04 

Nonfarm nonresidential.................................... 1.24 1.60 1.48 1.01 1.21 1.29 1.38 1.30 0.92 1.20 1.06 

Multifamily residential real estate .................... 1.20 1.53 1.44 1.21 1.14 1.07 1.38 1.24 0.87 1.65 1.15 

Home equity loans............................................ 1.32 1.05 0.94 0.86 1.38 0.78 1.48 1.41 1.28 0.95 1.36 

Other 1-4 family residential.............................. 3.18 2.50 2.06 1.85 3.60 2.12 3.71 3.48 3.12 2.85 3.50 

Commercial and industrial loans ............................ 0.95 1.85 1.39 1.03 0.87 1.45 0.84 0.91 1.23 0.93 0.58 

Loans to individuals................................................. 2.52 2.67 2.35 2.33 2.55 2.93 2.52 2.02 3.32 1.82 2.21 

Credit card loans .............................................. 2.82 2.56 2.68 2.41 2.84 2.99 2.76 2.61 3.22 1.21 2.59 

Other loans to individuals ................................ 2.33 2.67 2.33 2.31 2.32 2.79 2.45 1.86 3.40 2.04 1.97 

All other loans and leases (including farm) ............ 0.56 0.71 0.64 0.74 0.53 0.68 0.30 0.79 0.83 0.57 0.27 

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

Percent of Loans Noncurrent** 

1.93 1.83 1.70 1.43 2.06 1.92 2.10 1.89 1.87 1.71 1.82 

All real estate loans ................................................. 7.10 2.92 4.02 5.43 8.35 4.72 8.39 7.93 8.41 4.73 6.87 

Construction and development........................ 15.95 9.43 12.48 16.35 17.40 17.79 15.91 16.12 14.13 9.74 23.32 

Nonfarm nonresidential.................................... 3.82 3.05 2.87 3.30 4.62 3.62 4.62 4.05 3.33 2.39 3.86 

Multifamily residential real estate .................... 4.44 2.84 3.43 3.87 4.88 2.73 8.31 4.11 2.50 3.92 4.38 

Home equity loans............................................ 1.83 1.14 1.13 1.30 1.93 0.81 2.24 1.87 2.44 1.31 0.99 

Other 1-4 family residential.............................. 9.31 2.14 2.69 4.11 11.41 4.39 10.80 12.44 14.33 5.46 8.15 

Commercial and industrial loans ............................ 3.44 2.57 2.30 2.43 3.75 3.41 3.17 3.34 2.57 1.59 5.30 

Loans to individuals................................................. 2.20 1.15 0.96 1.47 2.32 3.22 1.45 1.59 2.40 0.84 2.32 

Credit card loans .............................................. 3.46 1.75 2.20 2.40 3.51 3.86 3.07 3.49 3.38 1.31 3.10 

Other loans to individuals ................................ 1.37 1.14 0.86 1.23 1.42 1.93 1.00 1.07 1.63 0.68 1.82 

All other loans and leases (including farm) ............ 1.65 0.68 1.06 1.08 1.78 1.40 0.90 1.97 0.85 1.04 3.58 

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

Percent of Loans Charged-off (net, YTD) 

5.37 2.51 3.53 4.50 5.90 4.03 6.19 5.84 5.82 3.70 5.42 

All real estate loans ................................................. 2.02 0.72 1.06 1.77 2.33 0.94 2.34 2.29 1.74 1.29 2.97 

Construction and development........................ 5.40 3.41 3.61 6.36 5.77 3.55 5.26 6.70 4.35 3.31 9.49 

Nonfarm nonresidential.................................... 0.77 0.55 0.55 0.79 0.89 0.66 0.67 1.21 0.62 0.47 0.94 

Multifamily residential real estate .................... 1.11 0.52 0.82 1.24 1.14 0.69 1.37 1.33 0.56 1.10 1.32 

Home equity loans............................................ 2.90 0.67 0.75 1.00 3.21 0.92 3.74 2.20 3.80 1.51 3.80 

Other 1-4 family residential.............................. 1.72 0.38 0.63 0.73 2.08 0.70 1.83 2.14 1.09 0.98 3.18 

Commercial and industrial loans ............................ 2.36 1.70 1.74 2.17 2.46 3.29 1.67 2.12 2.61 1.29 3.26 

Loans to individuals................................................. 5.37 1.30 2.03 2.83 5.76 8.36 3.57 3.41 6.79 1.89 5.06 

Credit card loans .............................................. 9.10 10.33 9.49 7.97 9.14 9.80 8.94 8.99 10.74 4.30 7.47 

Other loans to individuals ................................ 2.97 1.00 1.44 1.53 3.28 5.80 2.02 1.80 3.51 1.19 3.52 

All other loans and leases (including farm) ............ 1.24 0.00 0.80 1.09 1.31 0.77 1.16 1.79 0.55 0.98 1.70 

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

Loans Outstanding (in billions) 

2.49 0.86 1.19 1.88 2.84 2.75 2.27 2.34 2.39 1.32 3.32 

All real estate loans ................................................. $4,462.7 $68.2 $721.9 $704.9 $2,967.8 $837.7 $1,308.3 $883.8 $447.4 $363.5 $622.1 

Construction and development........................ 451.5 6.1 99.9 107.6 237.8 62.4 163.2 75.5 40.1 63.3 47.0 

Nonfarm nonresidential.................................... 1,091.4 20.7 272.2 271.7 526.8 219.1 287.7 197.4 114.1 123.5 149.6 

Multifamily residential real estate .................... 211.4 1.9 32.3 41.7 135.5 56.5 38.6 61.2 13.3 9.1 32.7 

Home equity loans............................................ 661.4 2.3 39.6 49.7 569.9 85.7 230.6 180.8 79.2 24.7 60.4 

Other 1-4 family residential.............................. 1,916.7 28.5 244.8 221.5 1,421.8 408.6 569.5 351.7 178.7 131.0 277.3 

Commercial and industrial loans ............................ 1,220.8 13.0 117.6 144.1 946.1 185.4 337.9 259.9 125.4 93.1 219.1 

Loans to individuals................................................. 1,060.3 7.0 44.3 75.2 933.8 291.0 239.5 172.7 87.6 41.4 228.1 

Credit card loans .............................................. 422.1 0.1 3.2 15.7 403.1 194.4 52.9 36.8 38.4 11.1 88.4 

Other loans to individuals ................................ 638.2 6.9 41.0 59.5 530.8 96.6 186.6 135.9 49.1 30.3 139.7 

All other loans and leases (including farm) ............ 546.1 10.7 39.3 38.1 458.0 82.9 138.7 120.7 90.4 22.6 90.8 

Total loans and leases (plus unearned income)..... 

Memo: Other Real Estate Owned (in millions) 

7,289.9 98.9 923.1 962.2 5,305.7 1,396.9 2,024.4 1,437.2 750.7 520.6 1,160.1 

All other real estate owned...................................... 41,357.1 1,043.4 11,544.2 9,003.2 19,766.3 3,342.3 13,023.1 8,834.9 5,254.7 4,490.3 6,411.8 

Construction and development........................ 16,999.7 363.0 5,856.7 5,039.6 5,740.4 978.0 5,764.1 2,367.3 1,943.2 2,232.1 3,715.1 

Nonfarm nonresidential.................................... 7,054.9 300.0 2,573.8 1,678.2 2,502.9 687.0 1,920.1 1,574.5 991.5 1,001.5 880.3 

Multifamily residential real estate .................... 1,747.0 31.8 393.5 376.3 945.4 287.2 643.9 358.2 120.8 142.7 194.0 

1-4 family residential ........................................ 12,625.6 324.1 2,593.9 1,743.8 7,963.8 1,225.6 4,461.1 3,291.9 1,193.1 1,009.0 1,445.1 

Farmland........................................................... 233.2 24.4 128.9 59.4 20.4 10.9 35.7 30.5 46.5 88.1 21.5 

GNMA properties.............................................. 2,561.3 0.1 8.4 109.3 2,443.4 149.8 198.3 1,208.4 962.6 16.9 25.4 

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

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

FDIC QUARTERLY 11 2010, VOLUME 4, NO. 1 
 

 

 

 

 

 

 

 

 

 

 

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

(dollar figures in millions; 

notional amounts unless otherwise indicated) 

% Change 

4th Quarter 3rd Quarter 2nd Quarter 1st Quarter 4th Quarter 08Q4-

2009 2009 2009 2009 2008 09Q4 

Asset Size Distribution 

Less $100 $1 Billion 

than $100 Million to to $10 Greater than 

Million $1 Billion Billion $10 Billion 

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives................. 1,124 1,175 1,214 1,170 1,102 2.0 86 663 295 80 

Total assets of institutions reporting derivatives .......... $10,574,596 $10,546,637 $10,593,301 $10,671,458 $10,973,667 -3.6 $6,132 $286,687 $881,408 $9,400,368 

Total deposits of institutions reporting derivatives....... 7,343,274 7,183,905 7,097,229 6,983,343 7,091,683 3.5 5,074 230,951 666,615 6,440,634 

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

Derivative Contracts by Underlying Risk Exposure 

213,568,137 206,393,163 206,256,673 204,766,718 212,114,632 0.7 230 17,690 64,380 213,485,836 

Interest rate.................................................................... 179,570,190 172,576,826 173,242,567 170,780,626 175,894,771 2.1 217 17,153 59,927 179,492,894 

Foreign exchange*......................................................... 17,297,924 17,721,486 16,646,714 16,272,958 16,922,815 2.2 0 36 2,989 17,294,899 

Equity ............................................................................. 1,685,227 2,182,431 2,041,640 2,174,368 2,206,793 -23.6 13 154 1,189 1,683,870 

Commodity & other (excluding credit derivatives)........ 978,928 926,295 909,250 938,063 1,061,132 -7.7 0 126 229 978,573 

Credit.............................................................................. 14,035,868 12,986,125 13,416,503 14,600,703 16,029,122 -12.4 0 221 46 14,035,600 

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

Derivative Contracts by Transaction Type 

213,568,137 206,393,163 206,256,673 204,766,718 212,114,632 0.7 230 17,690 64,380 213,485,836 

Swaps ............................................................................ 142,021,982 135,921,435 135,630,316 133,888,914 143,110,842 -0.8 29 9,889 40,787 141,971,276 

Futures & forwards ........................................................ 26,495,495 24,879,334 25,849,103 24,715,231 22,528,731 17.6 91 3,293 7,955 26,484,156 

Purchased options......................................................... 15,156,782 15,427,835 15,020,268 15,053,703 14,824,429 2.2 14 791 8,324 15,147,653 

Written options............................................................... 15,113,201 15,066,076 14,859,851 15,106,838 14,922,603 1.3 96 3,492 6,721 15,102,893 

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

Fair Value of Derivative Contracts 

198,787,460 191,294,681 191,359,538 188,764,686 195,386,605 1.7 230 17,465 63,787 198,705,978 

Interest rate contracts.................................................... 97,757 123,738 126,047 138,567 131,483 -25.7 1 9 155 97,592 

Foreign exchange contracts.......................................... 9,671 -5,037 -10,568 -10,459 -16,942 N/M 0 0 -6 9,678 

Equity contracts............................................................. 1,236 -253 670 3,103 2,871 -56.9 0 4 5 1,227 

Commodity & other (excluding credit derivatives)........ 1,623 3,615 1,156 4,158 3,848 -57.8 0 8 2 1,613 

Credit derivatives as guarantor..................................... -160,980 -234,357 -474,635 -959,080 -975,755 N/M 0 0 2 -160,982 

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

Derivative Contracts by Maturity** 

188,641 266,208 523,242 1,031,185 1,046,813 -82.0 0 2 -2 188,641 

Interest rate contracts ............................. < 1 year 80,979,677 74,555,204 72,452,309 68,436,001 58,618,112 38.1 60 3,515 11,921 80,964,180 

.......................................... 1-5 years 33,638,254 33,977,577 35,928,119 37,299,179 47,456,432 -29.1 13 7,255 18,543 33,612,443 

.......................................... > 5 years 26,146,311 26,620,986 28,371,872 30,000,656 36,868,247 -29.1 18 2,550 21,559 26,122,184 

Foreign exchange contracts ................... < 1 year 10,416,223 9,674,124 9,490,043 9,234,171 10,561,395 -1.4 0 30 1,609 10,414,584 

.......................................... 1-5 years 2,448,723 2,405,751 2,293,453 2,162,670 2,168,136 12.9 0 2 26 2,448,694 

.......................................... > 5 years 1,343,778 1,325,262 1,193,852 1,056,327 1,079,943 24.4 0 0 0 1,343,778 

Equity contracts....................................... < 1 year 312,066 358,462 343,418 348,777 409,029 -23.7 3 35 135 311,893 

.......................................... 1-5 years 227,712 301,995 291,182 286,171 256,252 -11.1 4 68 221 227,420 

.......................................... > 5 years 81,789 82,835 75,716 82,844 72,337 13.1 0 0 146 81,643 

Commodity & other contracts ................. < 1 year 261,429 237,860 252,705 279,748 264,916 -1.3 0 90 135 261,203 

.......................................... 1-5 years 223,654 233,829 211,329 206,173 261,768 -14.6 0 17 27 223,610 

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

Risk-Based Capital: Credit Equivalent Amount 

34,250 43,612 45,443 41,546 45,031 -23.9 0 0 0 34,250 

Total current exposure to tier 1 capital (%) ................... 45.8 57.3 66.7 86.2 107.5 0.1 0.4 1.5 51.8 

Total potential future exposure to tier 1 capital (%)...... 

Total exposure (credit equivalent amount) 

83.1 83.6 80.6 89.2 103.2 0.1 0.3 0.6 94.2 

to tier 1 capital (%).................................................. 128.9 140.9 147.3 175.3 210.6 0.2 0.7 2.0 146.1 

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

HELD FOR TRADING 

767.0 605.0 385.0 217.0 1,072.0 -28.5 0.0 12.0 6.0 749.0 

Number of institutions reporting derivatives................. 197 208 204 199 181 8.8 8 68 65 56 

Total assets of institutions reporting derivatives .......... 8,878,113 8,914,612 8,912,016 9,016,146 9,412,380 -5.7 632 29,703 272,057 8,575,720 

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

Derivative Contracts by Underlying Risk Exposure 

6,148,469 6,016,985 5,990,076 5,886,779 6,085,115 1.0 503 23,719 203,287 5,920,960 

Interest rate.................................................................... 177,716,898 170,554,652 170,915,171 168,601,486 173,827,586 2.2 42 867 16,875 177,699,113 

Foreign exchange.......................................................... 16,437,639 15,516,932 15,058,290 14,765,603 16,147,796 1.8 0 0 2,062 16,435,576 

Equity ............................................................................. 1,677,767 2,175,796 2,034,228 2,162,149 2,195,068 -23.6 0 0 250 1,677,517 

Commodity & other........................................................ 974,855 924,183 906,325 935,634 1,058,678 -7.9 0 6 118 974,731 

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

Trading Revenues: Cash & Derivative Instruments 

196,807,158 189,171,562 188,914,015 186,464,873 193,229,128 1.9 42 874 19,305 196,786,937 

Interest rate.................................................................... -1,209 5,436 900 9,265 -5,298 N/M 0 0 -31 -1,178 

Foreign exchange.......................................................... 2,560 -1,535 2,132 2,436 3,388 -24.4 0 0 8 2,552 

Equity ............................................................................. 144 153 -92 854 -1,061 N/M 0 0 0 144 

Commodity & other (including credit derivatives) ........ 417 1,648 2,320 -2,358 -6,265 N/M 0 0 0 417 

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

Share of Revenue 

1,913 5,702 5,260 10,197 -9,236 N/M 0 0 -22 1,935 

Trading revenues to gross revenues (%) ...................... 1.6 4.7 4.0 7.6 -8.2 0.0 0.0 -0.6 1.7 

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

HELD FOR PURPOSES OTHER THAN TRADING 

76.8 88.2 96.4 138.1 43.7 0.0 0.0 8.1 69.2 

Number of institutions reporting derivatives................. 1,004 1,047 1,086 1,048 998 0.6 78 596 255 75 

Total assets of institutions reporting derivatives .......... 10,214,960 10,196,875 10,216,763 10,304,129 10,462,976 -2.4 5,500 258,996 747,821 9,202,643 

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

Derivative Contracts by Underlying Risk 

Exposure 

7,098,074 6,952,660 6,847,472 6,730,432 6,820,742 4.1 4,571 208,642 564,703 6,320,158 

Interest rate.................................................................... 1,853,292 2,022,175 2,327,396 2,179,139 2,067,185 -10.3 174 16,285 43,052 1,793,780 

Foreign exchange.......................................................... 115,478 92,197 107,791 106,027 76,113 51.7 0 33 380 115,065 

Equity ............................................................................. 7,459 6,635 7,412 12,219 11,725 -36.4 13 154 939 6,353 

Commodity & other........................................................ 4,073 2,112 2,924 2,429 2,454 66.0 0 120 110 3,843 

Total notional amount .................................................... 1,980,302 2,123,119 2,445,523 2,299,813 2,157,477 -8.2 188 16,592 44,482 1,919,041 

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

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

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

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

in total assets. 

FDIC QUARTERLY 12 2010, VOLUME 4, NO. 1 
 

 

Quarterly Banking Profile 

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

Savings Banks) 

(dollar figures in millions) 

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

Quarter Quarter Quarter Quarter Quarter 08Q4-

2009 2009 2009 2009 2008 09Q4 

Asset Size Distribution 

Less than $100 $1 Billion Greater 

$100 Million to to $10 than $10 

Million $1 Billion Billion Billion 

Assets Sold and Securitized with Servicing Retained or with 

Recourse or Other Seller-Provided Credit Enhancements 

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

Outstanding Principal Balance by Asset Type 

146 146 141 132 132 10.6 19 63 26 38 

1-4 family residential loans................................................................................ $1,209,527 $1,225,710 $1,222,197 $1,230,735 $1,256,021 -3.7 $251 $896 $2,376 $1,206,004 

Home equity loans............................................................................................. 5,947 6,205 6,594 6,595 6,692 -11.1 0 0 0 5,947 

Credit card receivables...................................................................................... 363,486 391,417 397,918 399,113 398,261 -8.7 0 3,731 6,354 353,401 

Auto loans .......................................................................................................... 7,182 8,277 10,266 11,862 12,040 -40.3 0 0 91 7,091 

Other consumer loans ....................................................................................... 24,692 25,335 26,006 26,692 27,427 -10.0 0 0 0 24,692 

Commercial and industrial loans....................................................................... 7,649 8,436 9,019 8,317 9,705 -21.2 0 12 2,226 5,411 

All other loans, leases, and other assets* ........................................................ 198,905 192,088 193,377 197,693 198,471 0.2 56 48 140 198,660 

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

Maximum Credit Exposure by Asset Type 

1,817,388 1,857,467 1,865,377 1,881,009 1,908,617 -4.8 308 4,688 11,187 1,801,206 

1-4 family residential loans................................................................................ 5,781 6,115 6,058 6,279 6,892 -16.1 4 8 58 5,712 

Home equity loans............................................................................................. 1,023 1,006 1,063 1,120 1,247 -18.0 0 0 0 1,023 

Credit card receivables...................................................................................... 134,193 136,043 129,373 39,100 23,228 477.7 0 553 1,705 131,935 

Auto loans .......................................................................................................... 637 745 722 912 707 -9.9 0 0 7 631 

Other consumer loans ....................................................................................... 1,410 1,434 1,399 1,429 1,532 -8.0 0 0 0 1,410 

Commercial and industrial loans....................................................................... 225 274 184 367 137 64.2 0 0 94 131 

All other loans, leases, and other assets.......................................................... 287 333 299 301 612 -53.1 1 4 0 283 

Total credit exposure ................................................................................................. 143,556 145,950 139,100 49,509 34,355 317.9 5 564 1,864 141,124 

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

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

387 358 378 397 830 -53.4 1 0 0 385 

1-4 family residential loans................................................................................ 4.4 4.6 4.3 4.1 4.4 3.0 0.2 2.0 4.5 

Home equity loans............................................................................................. 1.3 1.3 0.8 1.1 1.4 0.0 0.0 0.0 1.3 

Credit card receivables...................................................................................... 2.7 2.9 2.6 3.0 2.9 0.0 1.7 3.1 2.7 

Auto loans .......................................................................................................... 2.3 2.4 2.2 1.9 2.5 0.0 0.0 1.1 2.3 

Other consumer loans ....................................................................................... 3.9 3.6 2.9 3.1 3.9 0.0 0.0 0.0 3.9 

Commercial and industrial loans....................................................................... 2.3 2.9 2.6 3.1 2.6 0.0 0.0 6.3 0.6 

All other loans, leases, and other assets.......................................................... 3.5 1.2 1.9 0.6 0.6 0.0 0.0 0.4 3.5 

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

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

4.0 3.9 3.7 3.5 3.7 2.5 1.4 3.4 4.0 

1-4 family residential loans................................................................................ 7.9 7.5 6.6 5.7 4.5 2.0 0.6 2.3 7.9 

Home equity loans............................................................................................. 2.0 1.8 0.9 1.4 1.2 0.0 0.0 0.0 2.0 

Credit card receivables...................................................................................... 3.0 2.6 2.9 3.0 2.5 0.0 1.5 2.9 3.0 

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

Other consumer loans ....................................................................................... 3.6 3.6 3.3 3.5 3.7 0.0 0.0 0.0 3.6 

Commercial and industrial loans....................................................................... 1.0 1.2 1.3 3.1 2.1 0.0 0.0 1.8 0.7 

All other loans, leases, and other assets.......................................................... 4.3 3.7 1.6 1.1 0.4 0.7 0.0 0.3 4.3 

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

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

6.4 5.9 5.2 4.6 3.6 1.8 1.3 2.5 6.4 

1-4 family residential loans................................................................................ 1.0 0.7 0.5 0.2 0.3 0.0 0.0 0.0 1.0 

Home equity loans............................................................................................. 1.8 1.4 0.9 0.6 0.1 0.0 0.0 0.0 1.8 

Credit card receivables...................................................................................... 10.2 7.6 4.8 2.1 6.4 0.0 5.8 7.9 10.3 

Auto loans .......................................................................................................... 2.5 1.9 1.1 0.7 0.8 0.0 0.0 0.3 2.5 

Other consumer loans ....................................................................................... 1.0 0.7 0.5 0.2 0.8 0.0 0.0 0.0 1.0 

Commercial and industrial loans....................................................................... 13.9 10.0 6.9 2.6 5.9 0.0 0.0 42.1 2.3 

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

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

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

2.8 2.1 1.4 0.6 1.6 0.0 4.6 12.8 2.7 

Home equity loans............................................................................................. 316 396 134 165 124 154.8 0 0 0 316 

Credit card receivables...................................................................................... 62,235 73,401 68,128 77,212 113,017 -44.9 0 235 308 61,692 

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

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

894 930 451 450 436 105.0 0 2 727 164 

Home equity loans............................................................................................. 1 2 4 5 5 -80.0 0 0 0 1 

Credit card receivables...................................................................................... 789 788 594 556 584 35.1 0 272 0 518 

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

Assets Sold with Recourse and Not Securitized 

0 0 0 0 16 -100.0 0 0 0 0 

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

Outstanding Principal Balance by Asset Type 

824 819 825 819 798 3.3 163 501 115 45 

1-4 family residential loans................................................................................ 67,009 67,431 69,938 70,061 70,713 -5.2 1,137 9,435 4,398 52,039 

Home equity, credit card receivables, auto, and other consumer loans ......... 908 1,024 1,159 1,348 1,477 -38.5 0 22 4 881 

Commercial and industrial loans....................................................................... 2,640 2,844 3,195 6,028 6,698 -60.6 1 55 33 2,552 

All other loans, leases, and other assets.......................................................... 48,657 47,971 47,560 46,438 46,254 5.2 3 98 51 48,505 

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

Maximum Credit Exposure by Asset Type 

119,215 119,270 121,852 123,875 125,141 -4.7 1,141 9,611 4,487 103,977 

1-4 family residential loans................................................................................ 16,558 14,849 15,270 15,421 15,313 8.1 112 1,379 2,676 12,391 

Home equity, credit card receivables, auto, and other consumer loans ......... 100 104 112 183 189 -47.1 0 7 2 91 

Commercial and industrial loans....................................................................... 1,920 2,003 2,224 4,995 5,617 -65.8 1 44 33 1,842 

All other loans, leases, and other assets.......................................................... 10,381 10,136 10,011 9,790 9,528 9.0 3 68 7 10,303 

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

Support for Securitization Facilities Sponsored by Other Institutions 

28,958 27,093 27,617 30,389 30,647 -5.5 116 1,498 2,717 24,628 

Number of institutions reporting securitization facilities sponsored by others ....... 59 60 60 56 51 15.7 20 30 5 4 

Total credit exposure ................................................................................................. 4,299 4,872 3,812 2,134 3,319 29.5 11 110 23 4,156 

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

Other 

545 327 475 936 1,416 -61.5 0 0 0 545 

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

Asset-backed commercial paper conduits 

5,982,602 5,976,951 5,880,171 5,684,180 5,615,186 6.5 4,093 78,971 98,164 5,801,375 

Credit exposure to conduits sponsored by institutions and others.................. 15,967 17,658 20,210 22,981 23,064 -30.8 5 0 390 15,573 

Unused liquidity commitments to conduits sponsored by institutions 

and others .................................................................................................. 170,373 182,740 210,026 273,542 297,908 -42.8 0 0 0 170,373 

Net servicing income (for the quarter) ...................................................................... 8,022 5,995 10,845 5,946 -390 -2,156.9 7 200 209 7,605 

Net securitization income (for the quarter) ............................................................... 1,613 1,163 -142 2,124 2,393 -32.6 0 62 106 1,445 

Total credit exposure to Tier 1 capital (%)***............................................................ 15.9 16.2 15.7 7.7 6.8 0.70 1.70 3.40 20.40 

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

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

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

FDIC QUARTERLY 13 2010, VOLUME 4, NO. 1 
 

 

 

TABLE VIII-A. Trust Services (All FDIC-Insured Institutions) 

(dollar figures in millions) 

All Insured Institutions Asset Size Distribution 

Dec 31 Dec 31 Dec 31 Dec 31 % Change 

 2009 2008 2007 2006 2008-2009 

Less $100 $1 Billion Greater 

Than $100 Million to to Than 

Million $1 Billion $10 Billion $10 Billion 

Number of institutions reporting................................................ 8,012 8,305 8,534 8,680 -3.5 2,845 4,495 565 107 

Number of institutions with fiduciary powers............................ 2,245 2,320 2,410 2,463 -3.2 442 1,387 339 77 

Commercial banks.............................................................. 2,065 2,126 2,216 2,268 -2.9 422 1,291 285 67 

Savings institutions ............................................................ 180 194 194 195 -7.2 20 96 54 10 

Number of institutions exercising fiduciary powers.................. 1,678 1,723 1,785 1,826 -2.6 278 1,042 289 69 

Commercial banks.............................................................. 1,537 1,571 1,633 1,672 -2.2 259 973 245 60 

Savings institutions ............................................................ 141 152 152 154 -7.2 19 69 44 9 

Number of institutions reporting fiduciary activity.................... 1,594 1,634 1,695 1,739 -2.4 259 988 280 67 

Commercial banks.............................................................. 1,457 1,488 1,552 1,593 -2.1 240 921 238 58 

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

Fiduciary and related assets - managed assets 

137 146 143 146 -6.2 19 67 42 9 

Personal trust and agency accounts ........................................ 635,547 616,859 800,662 764,628 3.0 8,223 84,707 88,260 454,357 

Noninterest-bearing deposits1 ........................................... 4,707 16 -53 -4 N/M 48 729 562 3,368 

Interest-bearing deposits1 .................................................. 29,322 11,909 11,549 9,371 N/M 378 7,894 5,698 15,353 

U.S. Treasury and U.S. government agency obligations1 ... 128,740 26,766 31,633 32,875 N/M 2,048 22,938 23,075 80,680 

State, county and municipal obligations1 ........................... 201,677 65,285 67,110 70,887 N/M 2,332 18,295 34,817 146,233 

Money market mutual funds1 .............................................. 171,360 56,926 51,260 38,136 N/M 3,046 22,913 20,378 125,023 

Other short-term obligations1 ............................................. 232,290 9,656 21,935 9,566 N/M 71 97 2,592 229,529 

Other notes and bonds1 ...................................................... 413,981 23,346 25,486 26,896 N/M 1,568 13,763 12,361 386,289 

Common and preferred stocks1 ......................................... 2,079,583 348,400 522,943 514,972 N/M 33,730 261,670 147,218 1,636,965 

Real estate mortgages1 ...................................................... 2,278 1,565 1,529 1,604 N/M 33 314 488 1,444 

Real estate1 ......................................................................... 54,169 36,045 33,942 31,927 N/M 647 17,027 5,268 31,227 

Miscellaneous assets1 ........................................................ 

Employee benefit and retirement-related trust and 

agency accounts: 2 

120,224 37,114 33,305 27,941 N/M 546 41,637 11,025 67,015 

Employee benefit - defined contribution2 ........................... 370,403 284,338 328,898 307,185 30.3 8,220 110,188 11,892 240,104 

Employee benefit - defined benefit2 ................................... 688,865 699,212 1,060,288 1,153,825 -1.5 3,266 71,051 17,583 596,964 

Other benefit and retirement-related accounts2 ................ 188,420 330,102 414,627 309,451 -42.9 7,823 12,055 14,452 154,090 

Corporate trust and agency accounts2 ..................................... 

Investment management and investment advisory 

18,571 27,834 25,165 31,457 -33.3 26 671 8,314 9,560 

agency accounts2 ............................................................... 1,310,073 1,228,778 1,544,249 1,505,171 6.6 29,549 120,690 110,231 1,049,603 

Other fiduciary accounts2 .......................................................... 

Total managed fiduciary accounts: 

233,040 165,055 235,544 320,331 41.2 1,575 7,945 13,418 210,102 

Assets ................................................................................. 3,444,919 3,352,177 4,409,432 4,392,047 2.8 58,681 407,307 264,150 2,714,781 

Number of accounts ........................................................... 

Fiduciary and related assets - nonmanaged assets 

1,380,299 1,443,070 1,524,905 2,998,698 -4.3 86,264 198,104 271,495 824,436 

Personal trust and agency accounts ........................................ 

Employee benefit and retirement-related trust and 

agency accounts: 

243,707 307,018 355,356 309,320 -20.6 3,410 18,985 27,316 193,996 

Employee benefit - defined contribution............................ 1,854,341 1,465,165 1,822,997 1,779,455 26.6 5,927 622,909 115,754 1,109,751 

Employee benefit - defined benefit .................................... 4,592,334 3,983,182 5,333,411 4,542,941 15.3 12,653 30,870 60,245 4,488,566 

Other employee benefit and retirement-related accounts .. 1,297,470 1,592,694 2,098,523 2,121,766 -18.5 7,305 644,210 8,858 637,097 

Corporate trust and agency accounts....................................... 3,919,971 3,887,768 4,428,539 2,961,810 0.8 5,953 12,239 578,841 3,322,939 

Other fiduciary accounts ........................................................... 

Total nonmanaged fiduciary accounts: 

3,350,706 2,595,184 3,360,231 3,170,657 28.1 3,156 16,713 7,587 3,295,686 

Assets ................................................................................. 15,258,529 13,831,012 17,399,057 14,885,949 10.3 38,443 1,347,766 800,180 13,072,139 

Number of accounts ........................................................... 

Custody and safekeeping accounts: 

14,677,106 21,365,089 16,446,693 16,049,769 -31.3 934,154 9,512,564 283,237 3,947,151 

Assets ................................................................................. 57,308,353 50,499,369 58,167,543 48,360,083 13.5 211,040 584,505 702,057 55,810,751 

Number of accounts ........................................................... 

Fiduciary and related services income 

9,834,392 10,676,205 11,327,070 11,207,747 -7.9 595,641 7,238,213 321,845 1,678,693 

Personal trust and agency accounts ........................................ 

Retirement-related trust and agency accounts: 

4,580 4,896 5,766 5,147 -6.5 61 359 546 3,614 

Employee benefit - defined contribution............................ 1,164 1,095 1,183 1,305 6.3 32 249 184 698 

Employee benefit - defined benefit .................................... 1,495 1,997 1,803 1,949 -25.1 24 173 48 1,250 

Other retirement accounts ................................................. 986 1,005 1,036 871 -1.9 65 74 100 747 

Corporate trust and agency accounts....................................... 2,080 2,529 2,439 2,054 -17.8 1 20 369 1,690 

Investment management agency accounts.............................. 4,128 4,450 4,155 3,683 -7.2 135 475 543 2,975 

Other fiduciary accounts ........................................................... 1,824 2,162 2,154 1,440 -15.6 5 27 12 1,780 

Custody and safekeeping accounts.......................................... 6,921 8,337 8,165 8,011 -17.0 138 146 421 6,215 

Other fiduciary and related services income............................ 2,310 3,272 2,424 1,855 -29.4 8 92 88 2,122 

Total gross fiduciary and related services income................... 25,683 30,021 29,284 26,142 -14.4 476 1,734 2,350 21,123 

Less: Expenses .................................................................. 19,228 20,564 20,590 19,096 -6.5 251 1,420 1,960 15,597 

Less: Net losses from fiduciary and related services ....... 

Plus: Intracompany income credits for fiduciary and 

576 944 364 152 -39.0 0 4 20 553 

related services........................................................... 2,770 3,497 4,549 2,897 -20.8 0 32 312 2,425 

Net fiduciary and related services income ............................... 

Collective investment funds and common trust funds 

(market value) 

8,452 11,731 12,715 9,963 -28.0 219 224 643 7,365 

Domestic equity funds........................................................ 349,855 279,766 448,230 449,079 25.1 6,383 40,867 9,495 293,110 

International/global equity funds ....................................... 120,442 108,265 206,551 171,114 11.2 1,492 10,468 2,300 106,182 

Stock/bond blend funds ..................................................... 90,213 126,981 215,849 217,734 -29.0 486 7,955 1,911 79,862 

Taxable bond funds............................................................ 186,228 210,926 214,159 185,398 -11.7 3,870 47,429 3,725 131,203 

Municipal bond funds ......................................................... 51,787 7,029 8,328 8,695 636.8 46 40,752 355 10,632 

Short-term investments/money market funds ................... 272,915 310,500 395,025 352,341 -12.1 1,213 7,904 772 263,026 

Specialty/other funds ......................................................... 94,600 94,706 121,628 96,902 -0.1 6,008 32,990 3,236 52,367 

Total collective investment funds.............................................. 1,166,039 1,138,173 1,609,768 1,481,262 2.4 19,498 188,365 21,794 936,382 1

 After 2008, includes personal trust and agency accounts, investment management agency accounts, employee benefit accounts, retirement-related accounts, and all other managed 

asset accounts 

2

 After 2008, included in managed assets, above. 

FDIC QUARTERLY 14 2010, VOLUME 4, NO. 1 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Banking Profile 

INSURANCE FUND INDICATORS 

■ Insured Deposits Grow by 1.8 Percent 

■ DIF Reserve Ratio Declines 23 Basis Points to −0.39 Percent 

■ Forty-five Institutions Failed During Fourth Quarter 

■ Banks Prepay 13 Quarters of Insurance Assessments 

Total assets of the nation’s 8,012 FDIC-insured 

commercial banks and savings institutions decreased by 

$137.2 billion (1.0 percent) during the fourth quarter of 

2009. Total deposits increased by $125.7 billion (1.4 

percent), domestic deposits increased by $143.6 billion 

(1.9 percent), and foreign office deposits decreased by 

$17.8 billion (1.2 percent). Domestic savings deposits 

and interest-bearing checking accounts increased by 

$194.1 billion (5.4 percent). Domestic noninterestbearing deposits increased by $89.8 billion (6.1 

percent), and domestic time deposits decreased by 

$140.4 billion (5.6 percent). Over the past 12 months, 

the share of assets funded by domestic deposits rose 

from 54.2 percent to 58.7 percent, and the share funded 

by foreign office deposits increased from 11.1 percent to 

11.7 percent. During the same period, Federal Home 

Loan Bank (FHLB) advances as a percentage of total 

assets declined from 5.8 percent to 4.1 percent, the 

smallest percentage on record (2001 to present). 

Since the second quarter of 2009, the portion of 

brokered deposits exceeding 10 percent of an institution’s domestic deposits has been included in the 

formula used to price an institution’s deposit insurance.1 

Brokered deposits decreased by $16.9 billion (2.7 

percent) during the fourth quarter and decreased by 

$146.8 billion (19.2 percent) during the previous 12 

months. Reciprocal brokered deposits decreased by $2.8 

billion (7.7 percent) to $33.6 billion during the three 

months ending December 31, 2009. 

1 For an institution in Risk Category I, the initial base assessment rate 

is adjusted using the adjusted brokered deposit ratio. This ratio will 

exceed zero if an institution’s brokered deposits are greater than 10 

percent of its domestic deposits and its total assets are more than 40 

percent greater than they were four years previously. Certain reciprocal brokered deposits are excluded from the calculation of the adjusted 

brokered deposit ratio. For an institution in any other risk category, the 

initial base assessment rate is increased if the institution’s ratio of 

brokered deposits to domestic deposits is greater than 10 percent. 

Reciprocal brokered deposits are included in the amount of brokered 

deposits for purposes of computing this ratio. 

Beginning September 30, 2009, insured deposit estimates are based on the temporary $250,000 coverage 

limit.2 Estimated insured deposits (including U.S. 

branches of foreign banks) increased by $95.3 billion 

(1.8 percent) during the fourth quarter of 2009. For the 

year, estimated insured deposits increased by 13.5 

percent ($641.3 billion), reflecting new data collected 

on the temporary increase in the standard maximum 

FDIC deposit insurance amount from $100,000 to 

$250,000. For institutions reporting as of September 30, 

2009, and December 31, 2009, insured deposits 

increased during the fourth quarter at 5,435 institutions 

(68 percent), decreased at 2,546 institutions (32 

percent), and remained unchanged at 28 institutions. 

The Deposit Insurance Fund (DIF) decreased by $12.6 

billion during the fourth quarter to a negative $20.9 

billion (unaudited) primarily because of $17.8 billion in 

additional provisions for bank failures. Also, unrealized 

losses on available-for-sale securities combined with 

operating expenses reduced the fund by $692 million. 

Accrued assessment income added $3.1 billion to the 

fund during the quarter, and interest earned combined 

with termination fees on loss share guarantees and 

surcharges from the Temporary Liquidity Guarantee 

Program added $2.8 billion. For the year, the fund 

balance shrank by $38.1 billion, compared to a $35.1 

billion decrease in 2008. 

The DIF’s reserve ratio was negative 0.39 percent on 

December 31, 2009, down from negative 0.16 percent 

on September 30, 2009, and 0.36 percent a year ago. 

2 On May 20, 2009, the President signed the Helping Families Save 

Their Homes Act of 2009, which extended the temporary deposit 

insurance coverage limit increase to $250,000 for deposits other than 

retirement accounts (from the permanent limit of $100,000) through 

the end of 2013. The legislation also eliminated the provision in the 

Emergency Economic Stabilization Act of 2008 that prevented the FDIC 

from considering this temporary increase in deposit insurance coverage for purposes of setting deposit insurance assessments. Beginning 

September 30, 2009, insured deposit estimates are based on the 

$250,000 coverage limit. 

FDIC QUARTERLY 15 2010, VOLUME 4, NO. 1 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The December 31, 2009, reserve ratio is the lowest 

reserve ratio for a combined bank and thrift insurance 

fund on record. 

Forty-five insured institutions with combined assets of 

$65.0 billion failed during the fourth quarter of 2009, at 

an estimated cost of $10.2 billion. For all of 2009, 140 

FDIC-insured institutions with assets of $169.7 billion 

failed, at an estimated cost to the DIF of $35.6 billion. 

This was the largest number of failures since 1990, 

when 168 institutions with combined assets of $16.9 

billion failed (excluding thrifts resolved by the Resolution Trust Corporation). 

Prepaid Assessments 

On September 29, 2009, the FDIC Board adopted an 

Amended Restoration Plan to allow the DIF to return 

to a reserve ratio of 1.15 percent within eight years, as 

mandated by statute. At the same time, the Board 

adopted higher annual risk-based assessment rates effective January 1, 2011. While the Amended Restoration 

Plan and higher assessment rates address the need to 

return the DIF reserve ratio to 1.15 percent, the FDIC 

must also consider its need for cash to pay for projected 

failures. In June 2008, before the number of bank and 

thrift failures began to rise significantly, total assets 

held by the DIF were approximately $56 billion and 

consisted almost entirely of cash and marketable securities (i.e., liquid assets). As the crisis has unfolded, liquid 

assets of the DIF have been to protect depositors of 

failed institutions and were exchanged for less liquid 

claims against assets of failed institutions. As of 

September 30, 2009, although total assets had increased 

to almost $63 billion, cash and marketable securities 

had fallen to approximately $23 billion. The pace of 

resolutions continues to put downward pressure on cash 

balances. While most of the less liquid assets in the DIF 

have value that will eventually be converted to cash 

when sold, the FDIC’s immediate need is for more 

liquid assets to fund near-term failures. If the FDIC took 

no action under its existing authority to increase its 

liquidity, staff projected that the FDIC’s liquidity needs 

would exceed liquid assets on hand beginning in the 

first quarter of 2010. To provide the FDIC with the 

funds needed to carry on with the task of resolving 

failed institutions in 2010 and beyond, but without 

accelerating the effect of assessments on the industry’s 

earnings and capital, the FDIC approved a measure to 

require insured institutions to prepay 13 quarters worth 

of deposit insurance premiums. These prepayments— 

about $46 billion—were collected on December 30, 

2009. Cash and marketable securities stood at $66 

billion on December 31, 2009. 

Author: Kevin Brown, Sr. Financial Analyst 

Division of Insurance and Research 

(202) 898-6817 

FDIC QUARTERLY 16 2010, VOLUME 4, NO. 1 
 

Quarterly Banking Profile 

Table I-B. Insurance Fund Balances and Selected Indicators 

(dollar figures in millions) 

Deposit Insurance Fund 

4th 

Quarter 

2009* 

3rd 

Quarter 

2009* 

2nd 

Quarter 

2009* 

1st 

Quarter 

2009* 

4th 

Quarter 

2008 

3rd 

Quarter 

2008 

2nd 

Quarter 

2008 

1st 

Quarter 

2008 

4th 

Quarter 

2007 

3rd 

Quarter 

2007 

2nd 

Quarter 

2007 

1st 

Quarter 

2007 

4th 

Quarter 

2006 

Beginning Fund Balance ..... 

Changes in Fund Balance: 

-$8,243 $10,368 $13,007 $17,276 $34,588 $45,217 $52,843 $52,413 $51,754 $51,227 $50,745 $50,165 $49,992 

Assessments earned.............. 

Interest earned on 

3,078 2,965 9,095 2,615 996 881 640 448 239 170 140 94 10 

investment securities ...... 

Realized gain on sale of 

76 176 240 212 277 526 651 618 585 640 748 567 476 

investments...................... 0 732 521 136 302 473 0 0 0 0 0 0 0 

Operating expenses ............... 

Provision for insurance 

379 328 298 266 290 249 256 238 262 243 248 239 248 

losses............................... 

All other income, 

17,777 21,694 11,615 6,637 19,163 11,930 10,221 525 39 132 -3 -73 49 

net of expenses ............... 

Unrealized gain/(loss) on 

available-for-sale 

2,708 308 375 2 15 16 1 0 -2 24 1 4 5 

securities ......................... -313 -770 -957 -331 551 -346 1,559 127 138 68 -162 81 -21 

Total fund balance change ..... -12,607 -18,611 -2,639 -4,269 -17,312 -10,629 -7,626 430 659 527 482 580 173 

Ending Fund Balance........... 

Percent change from 

-20,850 -8,243 10,368 13,007 17,276 34,588 45,217 52,843 52,413 51,754 51,227 50,745 50,165 

four quarters earlier......... NM NM -77.07 -75.39 -67.04 -33.17 -11.73 4.13 4.48 3.52 3.36 3.15 3.23 

Reserve Ratio (%) ................. 

Estimated Insured 

-0.39 -0.16 0.22 0.27 0.36 0.76 1.01 1.19 1.22 1.22 1.21 1.20 1.21 

Deposits**.............................. 

Percent change from 

5,391,876 5,296,533 4,817,577 4,831,090 4,750,608 4,545,098 4,467,570 4,437,870 4,292,221 4,242,607 4,235,044 4,245,266 4,153,786 

four quarters earlier......... 13.50 16.53 7.83 8.86 10.68 7.13 5.49 4.54 3.33 3.48 4.82 6.08 6.76 

Domestic Deposits............... 

Percent change from 

7,705,342 7,561,295 7,561,998 7,546,999 7,505,409 7,230,329 7,036,249 7,076,719 6,921,687 6,747,998 6,698,886 6,702,598 6,640,105 

four quarters earlier......... 

Number of institutions 

2.66 4.58 7.47 6.65 8.43 7.15 5.04 5.58 4.24 4.07 3.91 5.71 6.59 

reporting......................... 8,022 8,109 8,205 8,257 8,315 8,394 8,462 8,505 8,545 8,570 8,625 8,661 8,692 

DIF Reserve Ratios 

Percent of Insured Deposits 

1.23 1.22 1.21 1.20 1.21 1.22 1.22 

1.01 

0.76 

0.36 

0.27 0.22 

-0.16 -0.39

1.19 

6/06 12/06 6/07 12/07 6/08 12/08 6/09 12/09 

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

Deposit Insurance Fund Balance 

and Insured Deposits 

($ Millions) 

DIF DIF-Insured 

Balance Deposits 

6/06 49,564 4,040,353 

9/06 49,992 4,100,013 

12/06 50,165 4,153,786 

3/07 50,745 4,245,266 

6/07 51,227 4,235,044 

9/07 51,754 4,242,607 

12/07 52,413 4,292,221 

3/08 52,843 4,437,870 

6/08 45,217 4,467,570 

9/08 34,588 4,545,098 

12/08 17,276 4,750,608 

3/09 13,007 4,831,090 

6/09 10,368 4,817,577 

9/09 -8,243 5,296,533 

12/09 -20,850 5,391,876 

(dollar figures in millions) 2009 2008 2007 2006 2005 2004 

Problem Institutions 

Number of institutions .................................................................. 702 252 76 50 52 80 

Total assets................................................................................... $402,782 $159,405 $22,189 $8,265 $6,607 $28,250 

Failed Institutions 

Number of institutions .................................................................. 140 25 3 0 0 4 

Total assets................................................................................... $169,709 $371,945 $2,615 $0 $0 $170 

Assisted Institutions*** 

Number of institutions .................................................................. 8 5 0 0 0 0 

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

* For 2009, preliminary unaudited fund data, which are subject to change. NM - Not meaningful 

** The Emergency Economic Stabilization Act of 2008 directs the FDIC not to consider the temporary coverage increase to $250,000 in setting assessments. Therefore, we do not include 

the additional insured deposits in calculating the fund reserve ratio, which guides our assessment planning, from fourth quarter 2008 through the second quarter of 2009. The Helping 

Families Save Their Home Act of 2009 eliminated the prohibition against the FDIC’s taking the temporary increase into account when setting assessments. Beginning in the third quarter 

of 2009 estimates of insured deposits include the temporary coverage increase to $250,000. 

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

received assistance in 2009. 

FDIC QUARTERLY 17 2010, VOLUME 4, NO. 1 
 

 

 

 

 

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

(dollar figures in millions) 

December 31, 2009 

Number of 

Institutions 

Total 

Assets 

Domestic 

Deposits* 

Est. Insured 

Deposits 

Commercial Banks and Savings Institutions 

FDIC-Insured Commercial Banks ............................................... 6,839 $11,846,114 $6,803,277 $4,591,474 

FDIC-Supervised ................................................................... 4,533 1,956,527 1,477,671 1,174,250 

OCC-Supervised.................................................................... 1,462 8,199,604 4,321,479 2,775,296 

Federal Reserve-Supervised................................................. 844 1,689,983 1,004,127 641,928 

FDIC-Insured Savings Institutions .............................................. 1,173 1,263,342 893,535 793,108 

OTS-Supervised Savings Institutions.................................... 765 942,659 659,869 589,571 

FDIC-Supervised State Savings Banks................................. 408 320,683 233,666 203,538 

Total Commercial Banks and Savings Institutions ...................... 

Other FDIC-Insured Institutions 

8,012 13,109,456 7,696,812 5,384,582 

U.S. Branches of Foreign Banks ................................................. 10 24,759 8,530 7,293 

Total FDIC-Insured Institutions.................................................... .. 8,022 13,134,215 7,705,342 5,391,876 

* Excludes $1.53 trillion in foreign office deposits, which are uninsured. 

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

Quarter Ending September 30, 2009 

(dollar figures in billions) 

Annual 

Rate in 

Basis Points* 

Number of 

Institutions 

Percent 

of Total 

Institutions 

Domestic 

Deposits 

Percent 

of Total 

Domestic 

Deposits 

Risk Category I

 7.00-12.00 1,917 23.64 937 12.39 

12.01- 14.00 1,693 20.88 1,436 19.00 

14.01- 15.99 2,469 30.45 2,322 30.71

 16.00-24.00 300 3.70 240 3.17 

Risk Category II 17.00-22.00 786 9.69 1,925 25.46

 22.01-43.00 330 4.07 412 5.45 

Risk Category III 27.00-32.00 274 3.38 78 1.03

 32.01-58.00 187 2.31 116 1.54 

Risk Category IV 40.00-45.00 94 1.16 40 0.53

 45.01-77.50 58 0.72 55 0.72 

Note: Institutions are categorized based on supervisory ratings, debt ratings, and financial data as of September 30, 2009. Rates do not reflect 

the application of assessment credits. See notes to users for further information on risk categories and rates. 

* Assessment rates with a given risk category vary for several reasons; see 12 CFR Part 327 

http://www.fdic.gov/deposit/insurance/initiative/09FinalAD35.pdf 

FDIC QUARTERLY 18 2010, VOLUME 4, NO. 1 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Banking Profile 

TEMPORARY LIQUIDITY GUARANTEE PROGRAM 

■ Debt Guarantee Program Ended October 31, 2009 

■ Emergency Facility Available until April 30, 2010, on Limited Basis 

■ Transaction Account Guarantee Program Extended to June 30, 2010 

■ $309 Billion in Debt Outstanding in Program 

FDIC Responds to Market Disruptions with TLGP 

The FDIC Board approved the Temporary Liquidity 

Guarantee Program (TLGP)1 on October 13, 2008, as 

major disruptions in credit markets blocked access to 

liquidity for financial institutions. The TLGP improved 

access to liquidity through two programs: by fully guaranteeing noninterest-bearing transaction deposit 

accounts above $250,000, regardless of dollar amount, 

and by guaranteeing eligible senior unsecured debt 

issued by eligible institutions. 

All insured depository institutions were eligible to 

participate in the Transaction Account Guarantee 

Program (TAGP). Institutions eligible for participation 

in the Debt Guarantee Program (DGP) included insured 

depository institutions, U.S. bank holding companies, 

certain U.S. savings and loan holding companies, and 

other affiliates of insured depository institutions that the 

FDIC designated as eligible entities. 

FDIC Extends Transaction Account and 

Debt Guarantee Programs 

Although there was significant improvement in financial markets in the first half of 2009, portions of the 

industry were still affected by the recent economic 

turmoil. In order to facilitate the orderly phase-out of 

the TLGP, and to continue access to FDIC guarantees 

where they were needed, the FDIC Board extended 

both components of the program. 

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

voted to extend the deadline for issuance of guaranteed 

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

extended the expiration date of the guarantee to the 

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

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

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

1 The FDIC invoked the systemic risk exception pursuant to section 

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

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

see http://www.fdic.gov/regulations/resources/TLGP/index.html. 2 See http://www.fdic.gov/news/board/Mar1709rule.pdf. 

A final rule extending the Transaction Account Guarantee component of the TLGP six months, to June 30, 

2010, was adopted on August 26, 2009. Entities participating in the Transaction Account Guarantee program 

had the opportunity to opt out of the extended 

program. Depository institutions that remain in the 

extended program will be subject to increased fees that 

are adjusted to reflect the institution’s risk.3 

The Board adopted a final rule on October 20, 2009, 

that allowed the DGP to expire on October 31, 2009.4 

The final rule also established a limited, six-month 

guarantee facility upon expiration of the DGP. This 

emergency guarantee facility will be available on a caseby-case basis to entities participating in the DGP, upon 

application to the FDIC and with the approval of the 

Chairman after consultation with the Board. 

Program Funded by Industry Fees and Assessments 

The TLGP does not rely on taxpayer funding or the 

Deposit Insurance Fund. Both components of the 

program are paid for by direct user fees. Institutions 

participating in the TAGP provided customers full 

coverage on noninterest-bearing transaction accounts 

for an annual fee of 10 basis points through year-end 

2009. Fees for qualifying noninterest-bearing transaction accounts guaranteed between January 1, 2010, and 

June 30, 2010, will be based on the participating entity’s 

risk category assignment under the FDIC’s risk-based 

premium system. Annualized fees will be 15, 20, or 25 

basis points, depending on an institution’s risk category. 

Fees for participation in the DGP were based on the 

maturity of debt issued and ranged from 50 to 100 basis 

points (annualized). A surcharge was imposed on debt 

issued with a maturity of one year or greater after April 

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

maturing on or before June 30, 2012, surcharges were 

10 basis points (annualized) on debt issued by insured 

3 See http://www.fdic.gov/news/board/aug26no3.pdf. 4 See http://www.fdic.gov/regulations/laws/federal/2009/09final 

AD37Oct23.pdf. 

FDIC QUARTERLY 19 2010, VOLUME 4, NO. 1 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

depository institutions and 20 basis points (annualized) 

on debt issued by other participating entities. For debt 

issued under the extension, that is, debt issued after 

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

surcharges were 25 basis points (annualized) on debt 

issued by insured depository institutions and 50 basis 

points (annualized) on debt issued by other participating entities. As of December 31, 2009, a total of $10.3 

billion in fees had been assessed under the DGP. 

A Majority of Eligible Entities Have Chosen to 

Participate in the TLGP 

More than 86 percent of FDIC-insured institutions 

opted in to the original TAGP, and more than half of 

all eligible entities elected to opt in to the DGP. Over 

6,000 depository institutions remain in the extended 

TAGP, while just over 500 elected to opt out of the 

program after year-end 2009. Lists of institutions that 

opted out of the guarantee programs are posted at http:// 

www.fdic.gov/regulations/resources/TLGP/optout.html. 

$834 Billion in Transaction Accounts over 

$250,000 Guaranteed 

According to fourth quarter 2009 Call and Thrift Financial Reports, insured institutions reported 685,465 noninterest-bearing transaction accounts over $250,000, an 

increase of 5.6 percent compared to third quarter 2009. 

These deposit accounts totaled $1.0 trillion, of which 

$834 billion was guaranteed under the TAGP. More 

than 5,800 FDIC-insured institutions reported noninterest-bearing transaction accounts over $250,000 in value. 

Debt Outstanding Represents 54 Percent of Total 

Cap on Issuers’ Guaranteed Debt 

The amount of FDIC-guaranteed debt that could be 

issued by each eligible entity, or its “cap,” was based on 

the amount of its senior unsecured debt outstanding as 

of September 30, 2008, that matured on or before June 

30, 2009. Eligible entities could issue debt up to 125 

percent of that outstanding amount. The cap for FDICinsured institutions that had no outstanding short-term 

senior unsecured debt other than Fed funds was set at 2 

percent of liabilities as of September 30, 2008. Total 

debt outstanding at quarter-end represented 54 percent 

of issuing entities’ total cap. 

$309 Billion in FDIC-Guaranteed Debt Was 

Outstanding at December 31, 2009 

Eighty-four financial entities—54 insured depository 

institutions and 30 bank and thrift holding companies 

and nonbank affiliates—had $309 billion in guaranteed 

debt outstanding at the end of the fourth quarter. Some 

banking groups issued FDIC-guaranteed debt at both 

the subsidiary and holding company level, but most 

guaranteed debt was issued by holding companies or 

nonbank affiliates of depository institutions. Bank and 

thrift holding companies and nonbank affiliates issued 

80 percent of FDIC-guaranteed debt outstanding at 

December 31, 2009. 

Debt outstanding at December 31, 2009, had longer 

terms at issuance, compared to debt outstanding at 

year-end 2008. Less than 1 percent of debt outstanding 

matures in 180 days or less, compared to 49 percent 

at year-end 2008; and 78 percent matures more than 

two years after issuance, compared to 39 percent at 

December 31, 2008. Among types of debt instruments, 

91 percent was in medium-term notes, compared to 

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

in commercial paper fell to under 0.1 percent from 

43 percent at year-end. 

Author: Katherine Wyatt 

Chief, Financial Analysis Section 

Division of Insurance and Research 

(202) 898-6755 

Table I-C. Participation in Temporary Liquidity Guarantee Program 

December 31, 2009 Total Eligible Entities Number Opting In Percent Opting In 

Transaction Account Guarantee Program 

Depository Institutions with Assets <= $10 Billion ................................ 

Depository Institutions with Assets > $10 Billion .................................. 

Total Depository Institutions* .......................................................... 

Debt Guarantee Program 

Depository Institutions with Assets <= $10 Billion ................................ 

Depository Institutions with Assets > $10 Billion .................................. 

Total Depository Institutions* .......................................................... 

Bank and Thrift Holding Companies and 

Non-Insured Affiliates............................................................................ 

All Entities........................................................................................ 

7,914 

107 

8,021 

7,914 

107 

8,021 

6,210 

14,231 

6,811 

99 

6,910 

4,220 

98 

4,318 

3,490 

7,808 

86.1% 

92.5% 

86.1% 

53.3% 

91.6% 

53.8% 

56.2% 

54.9% 

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

FDIC QUARTERLY 20 2010, VOLUME 4, NO. 1 
 

 

 

 

Quarterly Banking Profile 

Table II-C. Cap on FDIC-Guaranteed Debt for Opt-In Entities 

December 31, 2009 

Opt-In Entities with Senior Unsecured 

Debt Outstanding at 9/30/2008 

Opt-In Depository Institutions 

with no Senior Unsecured 

Debt at 9/30/2008 

(dollar figures in millions) 

Number 

 Debt Amount 

as of 

9/30/2008 Initial Cap Number 

2% Liabilities 

as of 

9/30/2008 

Total 

Entities 

Total Initial 

Cap 

Depository Institutions with Assets 

<= $10 Billion*.................................... 

Depository Institutions with Assets 

> $10 Billion* ...................................... 

Bank and Thrift Holding 

Companies, Noninsured Affiliates........... 

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

114 

41 

83 

238 

$3,508 

293,517 

397,727 

694,752 

$4,386 

366,896 

497,158 

868,440 

4,106 

57 

3,407 

7,570 

$31,850 

24,247 

N/A 

56,097 

4,220 

98 

3,490 

7,808 

$36,236 

391,143 

497,158 

924,537 

* Depository institutions include insured branches of foreign banks (IBAs). N/A - Not applicable 

Table III-C. Transaction Account Guarantee Program 

(dollar figures in millions) Dec. 31, 

2008 

Mar. 31, 

2009 

June 30, 

2009 

Sep. 30, 

2009 

Dec. 31, 

2009 

% Change 

09Q3-09Q4 

Number of Noninterest-Bearing Transaction Accounts 

over $250,000.............................................................. 527,249 586,519 681,166 649,015 685,465 5.6% 

Amount in Noninterest-Bearing Transaction Accounts 

over $250,000.............................................................. $854,302 $855,614 $904,552 $926,379 $1,005,631 8.6% 

Amount Guaranteed .......................................................... $722,489 $708,985 $734,261 $764,126 $834,265 9.2% 

Table IV-C. Debt Outstanding in Guarantee Program 

December 31, 2009 

(dollar figures in millions) Number Debt Outstanding Cap1 for Group 

Debt Outstanding 

Share of Cap 

Insured Depository Institutions 

Assets <= $10 Billion ....................................................... 

Assets > $10 Billion ......................................................... 

Bank and Thrift Holding Companies, 

Noninsured Affiliates.............................................................. 

All Issuers....................................................................... 

35 

19 

30 

84 

1,639 

59,537 

248,207 

309,383 

2,891 

187,085 

387,493 

577,469 

56.7% 

31.8% 

64.1% 

53.6% 

1

 The amount of FDIC-guaranteed debt that can be issued by each eligible entity, or its “cap,” is based on the amount of senior unsecured debt outstanding as of 

September 30, 2008. The cap for a depository institution with no senior unsecured debt outstanding at September 30, 2008, is set at 2 percent of total liabilities. 

See http://www2.fdic.gov/qbp/2008dec/tlgp2c.html for more information. 

Table V-C. Fees Assessed Under TLGP 

(dollar figures in millions) 

Debt Guarantee Program 

Transaction Account 

Guarantee Program* 

Total Fees 

Assessed Surcharges 

Total Fee 

Amount Fees Collected 

Fourth Quarter 2008.............................................................. 

First Quarter 2009 ................................................................. 

Second Quarter 2009 ............................................................ 

Third Quarter 2009 ................................................................ 

Fourth Quarter 2009.............................................................. 

$3,437 

3,433 

1,413 

691 

503 

385 

280 

207 

$3,437 

3,433 

1,797 

971 

709 

90 

179 

182 

188 

Total................................................................................. $9,476 $872 $10,348 $639 

* Prorated payment in arrears 

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

Other 

Interbank Other Senior 

December 31, 2009 Commercial Eurodollar Medium Interbank Unsecured Other Share 

(dollar figures in millions) Paper Deposits Term Notes Deposits Debt Term Note All Debt by Term 

Term at Issuance 

90 days or less...................................... $0 $1 $0 $10 $0 $0 $11 0.0% 

91-180 days........................................... 0 0 0 477 0 20 496 0.2% 

181-364 days......................................... 107 0 2,300 536 1 309 3,254 1.1% 

1-2 years ............................................... 0 2 58,167 22 0 4,775 62,966 20.4% 

Over 2-3 years ...................................... 0 0 80,447 0 3,352 6,005 89,803 29.0% 

Over 3 years.......................................... 1 0 139,985 4 3,713 9,151 152,853 49.4% 

Total ................................................ 108 3 280,898 1,049 7,065 20,260 309,383 

Share of Total........................................ 0.0% 0.0% 90.8% 0.3% 2.3% 6.5% 

FDIC QUARTERLY 21 2010, VOLUME 4, NO. 1 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes to Users 

This publication contains financial data and other information for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding the 

comparability of source data and reporting differences over 

time. 

Tables I-A through VIII-A. 

The information presented in Tables I-A through V-A of the 

FDIC Quarterly Banking Profile is aggregated for all FDICinsured institutions, both commercial banks and savings institutions. Tables VI-A (Derivatives) and VII-A (Servicing, 

Securitization, and Asset Sales Activities) aggregate information only for insured commercial banks and state-chartered 

savings banks that file quarterly Call Reports. Table VIII-A 

(Trust Services) aggregates Trust asset and income information collected annually from all FDIC-insured institutions. 

Some tables are arrayed by groups of FDIC-insured institutions based on predominant types of asset concentration, 

while other tables aggregate institutions by asset size and geographic region. Quarterly and full-year data are provided for 

selected indicators, including aggregate condition and income 

data, performance ratios, condition ratios, and structural 

changes, as well as past due, noncurrent, and charge-off information for loans outstanding and other assets. 

Tables I-B through IV-B. 

A separate set of tables (Tables I-B through IV-B) provides 

comparative quarterly data related to the Deposit Insurance 

Fund (DIF), problem institutions, failed/assisted institutions, 

and estimated FDIC-insured deposits, as well as assessment 

rate information. Depository institutions that are not insured 

by the FDIC through the DIF are not included in the FDIC 

Quarterly Banking Profile. U.S. branches of institutions headquartered in foreign countries and nondeposit trust companies 

are not included unless otherwise indicated. Efforts are made 

to obtain financial reports for all active institutions. However, 

in some cases, final financial reports are not available for 

institutions that have closed or converted their charters. 

DATA SOURCES 

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Consolidated Reports of 

Condition and Income (Call Reports) and the OTS Thrift 

Financial Reports submitted by all FDIC-insured depository 

institutions. This information is stored on and retrieved from 

the FDIC’s Research Information System (RIS) 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. 

All asset and liability figures used in calculating performance 

ratios represent average amounts for the period (beginning-ofperiod amount plus end-of-period amount plus any interim 

periods, divided by the total number of periods). For “poolingof-interest” mergers, the assets of the acquired institution(s) 

are included in average assets, since the year-to-date income 

includes the results of all merged institutions. No adjustments 

are made for “purchase accounting” mergers. Growth rates 

represent the percentage change over a 12-month period in 

totals for institutions in the base period to totals for institutions in the current period. 

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

institution’s home state. In addition, institutions may relocate 

across state lines or change their charters, resulting in an 

inter-regional or inter-industry migration, e.g., institutions 

can move their home offices between regions, and savings 

institutions can convert to commercial banks or commercial 

banks may convert to savings institutions. 

ACCOUNTING CHANGES 

Extended Net Operating Loss Carryback Period 

The Worker, Homeownership, and Business Assistance Act 

of 2009, which was enacted on November 6, 2009, permits 

banks and other businesses, excluding those banking organizations that received capital from the U.S. Treasury under the 

Troubled Asset Relief Program, to elect a net operating loss 

carryback period of three, four, or five years instead of the 

usual carryback period of two years for any one tax year ending after December 31, 2007, and beginning before January 1, 

2010. For calendar year banks, this extended carryback period 

applies to either the 2008 or 2009 tax year. The amount of 

the net operating loss that can be carried back to the fifth 

carryback year is limited to 50 percent of the available taxable income for that fifth year, but this limit does not apply to 

other carryback years. 

Under generally accepted accounting principles, banks may 

not record the effects of this tax change in their balance 

sheets and income statements for financial and regulatory 

reporting purposes until the period in which the law was 

enacted, i.e., the fourth quarter of 2009. Therefore, banks 

should recognize the effects of this fourth quarter 2009 tax 

law change on their current and deferred tax assets and liabilities, including valuation allowances for deferred tax assets, in 

their Call Reports for December 31, 2009. Banks should not 

amend their Call Reports for prior quarters for the effects of 

the extended net operating loss carryback period. 

Other-Than-Temporary Impairment 

When the fair value of an investment in a debt or equity 

security is less than its cost basis, the impairment is either 

temporary or other-than-temporary. To determine whether 

the impairment is other than temporary, an institution must 

apply other pertinent guidance such as paragraph 16 of FASB 

Statement No. 115, Accounting for Certain Investments in Debt 

and Equity Securities; FASB Staff Position (FSP) FAS 115-1 

and FAS 124-1, The Meaning of Other-Than-Temporary 

Impairment and Its Application to Certain Investments; FSP 

FAS 115-2 and FAS 124-2, Recognition and Presentation of 

Other-Than-Temporary Impairments; paragraph 6 of 

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Quarterly Banking Profile 

Accounting Principles Board Opinion No. 18, The Equity 

Method of Accounting for Investments in Common Stock; 

Emerging Issues Task Force (EITF) Issue No. 99-20, 

Recognition of Interest Income and Impairment on Purchased 

Beneficial Interests and Beneficial Interests That Continue to Be 

Held by a Transferor in Securitized Financial Assets; and FSP 

EITF 99-20-1, Amendments to the Impairment Guidance of 

EITF Issue No. 99-20. 

Under FSP FAS 115-2 and FAS 124-2 issued on April 9, 

2009, if the present value of cash flows expected to be collected on a debt security is less than its amortized cost basis, a 

credit loss exists. In this situation, if an institution does not 

intend to sell the security and it is not more likely than not 

that the institution will be required to sell the debt security 

before recovery of its amortized cost basis less any currentperiod credit loss, an other-than-temporary impairment has 

occurred. The amount of the total other-than-temporary 

impairment related to the credit loss must be recognized in 

earnings, but the amount of the total impairment related to 

other factors must be recognized in other comprehensive 

income, net of applicable taxes. Although the debt security 

would be written down to its fair value, its new amortized cost 

basis is the previous amortized cost basis less the other-thantemporary impairment recognized in earnings. In addition, if 

an institution intends to sell a debt security whose fair value 

is less than its amortized costs basis or it is more likely than 

not that the institution will be required to sell the debt security before recovery of its amortized cost basis, an other-thantemporary impairment has occurred and the entire difference 

between the security’s amortized cost basis and its fair value 

must be recognized in earnings. 

For any debt security held at the beginning of the interim 

period in which FSP FAS 115-2 and FAS 124-2 is adopted 

for which an other-than-temporary impairment loss has been 

previously recognized, if an institution does not intend to sell 

such a debt security and it is not more likely than not that 

the institution will be required to sell the debt security before 

recovery of its amortized cost basis, the institution should recognize the cumulative effect of initially applying the FSP as 

an adjustment to the interim period’s opening balance of 

retained earnings, net of applicable taxes, with a corresponding adjustment to accumulated other comprehensive income. 

The cumulative effect on retained earnings must be calculated by comparing the present value of the cash flows expected 

to be collected on the debt security with the security’s amortized cost basis as of the beginning of the interim period of 

adoption. 

FSP FAS 115-2 and FAS 124-2 are effective for interim and 

annual reporting periods ending after June 15, 2009. Early 

adoption of this FSP is permitted for periods ending after 

March 15, 2009, if certain conditions are met. Institutions are 

expected to adopt FSP FAS 115-2 and 124-2 for regulatory 

reporting purposes in accordance with the FSP’s effective 

date. 

Extended Net Operating Loss Carryback Period 

for Small Businesses 

The American Recovery and Reinvestment Act of 2009, 

which was enacted on February 17, 2009, permits qualifying 

small businesses, including FDIC-insured institutions, to elect 

a net operating loss carryback period of three, four, or five 

years instead of the usual carryback period of two years for 

any tax year ending in 2008 or, at the small business’s election, any tax year beginning in 2008. Under generally accepted accounting principles, institutions may not record the 

effect of this tax change in their balance sheets and income 

statements for financial and regulatory reporting purposes 

until the period in which the law was enacted, i.e., the first 

quarter of 2009. 

Business Combinations and Noncontrolling 

(Minority) Interests 

In December 2007, the FASB issued Statement No. 141 

(Revised), Business Combinations (FAS 141(R)), and 

Statement No. 160, Noncontrolling Interests in Consolidated 

Financial Statements (FAS 160). Under FAS 141(R), all business combinations, including combinations of mutual entities, 

are to be accounted for by applying the acquisition method. 

FAS 160 defines a noncontrolling interest, also called a 

minority interest, as the portion of equity in an institution’s 

subsidiary not attributable, directly or indirectly, to the parent 

institution. FAS 160 requires an institution to clearly present 

in its consolidated financial statements the equity ownership 

in and results of its subsidiaries that are attributable to the 

noncontrolling ownership interests in these subsidiaries. FAS 

141(R) applies prospectively to business combinations for 

which the acquisition date is on or after the beginning of the 

first annual reporting period beginning on or after December 

15, 2008. Similarly, FAS 160 is effective for fiscal years beginning on or after December 15, 2008. Thus, for institutions 

with calendar year fiscal years, these two accounting standards 

take effect in 2009. Beginning in March 2009, Institution 

equity capital and Noncontrolling interests are separately 

reported in arriving at Total equity capital and Net income. 

FASB Statement No. 157 Fair Value Measurements issued in 

September 2006 and FASB Statement No. 159 The Fair Value 

Option for Financial Assets and Financial Liabilities issued in 

February 2007 – both are effective in 2008 with early adoption 

permitted in 2007. FAS 157 defines fair value and establishes 

a framework for developing fair value estimates for the fair 

value measurements that are already required or permitted 

under other standards. FASB FSP 157-4, issued in April 2009, 

provides additional guidance for estimating fair value in 

accordance with FAS 157 when the volume and level of 

activity for the asset or liability have significantly decreased. 

The FSP also includes guidance on identifying circumstances 

that indicate a transaction is not orderly. The FSP is effective 

for interim and annual reporting periods ending after June 15, 

2009, with early adoption permitted for periods ending after 

March 15, 2009. 

Fair value continues to be used for derivatives, trading securities, and available-for-sale securities. Changes in fair value go 

through earnings for trading securities and most derivatives. 

Changes in the fair value of available-for-sale securities are 

reported in other comprehensive income. Available-for-sale 

securities and held-to-maturity debt securities are written 

down to fair value if impairment is other than temporary and 

loans held for sale are reported at the lower of cost or fair 

value. 

FAS 159 allows institutions to report certain financial assets 

and liabilities at fair value with subsequent changes in fair 

value included in earnings. In general, an institution may 

elect the fair value option for an eligible financial asset or 

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liability when it first recognizes the instrument on its balance 

sheet or enters into an eligible firm commitment. 

FASB Statement No. 158 Employers’ Accounting for Defined Benefit 

Pension and Other Postretirement Plans – issued in September 

2006 requires a bank to recognize in 2007, and subsequently, 

the funded status of its postretirement plans on its balance 

sheet. An overfunded plan is recognized as an asset and an 

underfunded plan is recognized as a liability. An adjustment is 

made to equity as accumulated other comprehensive income 

(AOCI) upon application of FAS 158, and AOCI is adjusted 

in subsequent periods as net periodic benefit costs are recognized in earnings. 

FASB Statement No. 156 Accounting for Servicing of Financial 

Assets – issued in March 2006 and effective in 2007, requires 

all separately recognized servicing assets and liabilities to be 

initially measured at fair value and allows a bank the option 

to subsequently adjust that value by periodic revaluation and 

recognition of earnings or by periodic amortization to 

earnings. 

FASB Statement No. 155 Accounting for Certain Hybrid Financial 

Instruments – issued in February 2006, requires bifurcation of 

certain derivatives embedded in interests in securitized financial assets and permits fair value measurement (i.e., a fair 

value option) for any hybrid financial instrument that contains an embedded derivative that would otherwise require 

bifurcation under FASB Statement No. 133, Accounting for 

Derivative Instruments and Hedging Activities (FAS 133). In 

addition, FAS 155 clarifies which interest-only and principalonly strips are not subject to FAS 133. 

Purchased Impaired Loans and Debt Securities – Statement of 

Position 03-3, Accounting for Certain Loans or Debt Securities 

Acquired in a Transfer. The SOP applies to loans and debt 

securities acquired in fiscal years beginning after December 

15, 2004. In general, this Statement of Position applies to 

“purchased impaired loans and debt securities” (i.e., loans and 

debt securities that a bank has purchased, including those 

acquired in a purchase business combination, when it is probable, at the purchase date, that the bank will be unable to 

collect all contractually required payments receivable). Banks 

must follow Statement of Position 03-3 for Call Report purposes. The SOP does not apply to the loans that a bank has 

originated, prohibits “carrying over” or creation of valuation 

allowances in the initial accounting, and any subsequent valuation allowances reflect only those losses incurred by the 

investor after acquisition. 

GNMA Buy-back Option – If an issuer of GNMA securities has 

the option to buy back the loans that collateralize the 

GNMA securities, when certain delinquency criteria are met, 

FASB Statement No. 140 requires that loans with this buyback option must be brought back on the issuer’s books as 

assets. The rebooking of GNMA loans is required regardless 

of whether the issuer intends to exercise the buy-back option. 

The banking agencies clarified in May 2005 that all GNMA 

loans that are rebooked because of delinquency should be 

reported as past due according to their contractual terms. 

FASB Interpretation No. 46 – The FASB issued Interpretation 

No. 46, Consolidation of Variable Interest Entities, in January 

2003 and revised it in December 2003. Generally, banks with 

variable interests in variable interest entities created after 

as late as 2005. The assets and liabilities of a consolidated 

variable interest entity are reported on a line-by-line basis 

according to the asset and liability categories shown on the 

bank’s balance sheet, as well as related income items. Most 

small banks are unlikely to have any “variable interests” in 

variable interest entities. 

[Note: In June 2009, the FASB issued Statement No. 166, 

Accounting for Transfers of Financial Assets (FAS 166), and 

Statement No. 167, Amendments to FASB Interpretation 

No. 46(R) (FAS 167), which change the way entities account 

for securitizations and special purpose entities. FAS 166 revises FASB Statement No. 140, Accounting for Transfers and 

Servicing of Financial Assets and Extinguishments of Liabilities, 

by eliminating the concept of a “qualifying special-purpose 

entity,” creating the concept of a “participating interest” 

(which is discussed more fully in the following section), 

changing the requirements for derecognizing financial assets, 

and requiring additional disclosures. FAS 167 revises FASB 

Interpretation No. 46(R), Consolidation of Variable Interest 

Entities, by changing how a bank or other company determines when an entity that is insufficiently capitalized or is 

not controlled through voting or similar rights, i.e., a “variable interest entity” (VIE), should be consolidated. Under 

FAS 167, a bank must perform a qualitative assessment to 

determine whether its variable interest or interests give it a 

controlling financial interest in a VIE. If a bank’s variable 

interest or interests provide it with the power to direct the 

most significant activities of the VIE, and the right to receive 

benefits or the obligation to absorb losses that could potentially be significant to the VIE, the bank is the primary beneficiary of, and therefore must consolidate, the VIE. 

Both FAS 166 and FAS 167 take effect as of the beginning of 

each bank’s first annual reporting period that begins after 

November 15, 2009, for interim periods therein, and for 

interim and annual reporting periods thereafter (i.e., as of 

January 1, 2010, for banks with a calendar year fiscal year). 

Earlier application is prohibited. Banks are expected to adopt 

FAS 166 and FAS 167 for Call Report purposes in accordance with the effective date of these two standards. Also, 

FAS 166 has modified the criteria that must be met in order 

for a transfer of a portion of a financial asset, such as a loan 

participation, to qualify for sale accounting. These changes 

apply to transfers of loan participations on or after the effective date of FAS 166, which is discussed above. Therefore, 

banks with a calendar year fiscal year must account for transfers of loan participations on or after January 1, 2010, in 

accordance with FAS 166. In general, loan participations 

transferred before the effective date of FAS 166 (January 1, 

2010, for calendar year banks) are not affected by this new 

accounting standard, and pre-FAS 166 participations that 

were properly accounted for as sales under FASB Statement 

No. 140 will continue to be reported as having been sold.] 

FASB Interpretation No. 48 on Uncertain Tax Positions – FASB 

Interpretation No. 48, Accounting for Uncertainty in Income 

Taxes (FIN 48), was issued in June 2006 as an interpretation 

of FASB Statement No. 109, Accounting for Income Taxes. 

Under FIN 48, the term “tax position” refers to “a position in 

a previously filed tax return or a position expected to be 

taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities.” FIN 48 furDecember 31, 2003, must consolidate them. The timing of ther states that a “tax position can result in a permanent 

consolidation varies with certain situations with application reduction of income taxes payable, a deferral of income taxes 

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Quarterly Banking Profile 

otherwise currently payable to future years, or a change in the 

expected realizability of deferred tax assets.” FIN 48 was originally issued effective for fiscal years beginning after December 

15, 2006. Banks must adopt FIN 48 for Call Report purposes 

in accordance with the interpretation’s effective date except 

as follows. On December 31, 2008, the FASB decided to defer 

the effective date of FIN 48 for eligible nonpublic enterprises 

and to require those enterprises to adopt FIN 48 for annual 

periods beginning after December 15, 2008. A nonpublic 

enterprise under certain conditions is eligible for deferral, 

even if it opted to issue interim or quarterly financial information in 2007 under earlier guidance that reflected the 

adoption of FIN 48. 

FASB Statement No. 123 (Revised 2004) and Share-Based 

Payments – refer to previously published Quarterly Banking 

Profile notes: http://www2.fdic.gov/qbp/2008dec/qbpnot.html 

FASB Statement No. 133 Accounting for Derivative Instruments and 

Hedging Activities – refer to previously published Quarterly 

Banking Profile notes: http://www2.fdic.gov/qbp/2008dec/ 

qbpnot.html 

DEFINITIONS (in alphabetical order) 

All other assets – total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

estate, investment in unconsolidated subsidiaries, customers’ 

liability on acceptances outstanding, assets held in trading 

accounts, federal funds sold, securities purchased with 

agreements to resell, fair market value of derivatives, and 

other assets. 

All other liabilities – bank’s liability on acceptances, limited-life 

preferred stock, allowance for estimated off-balance-sheet credit losses, fair market value of derivatives, and other liabilities. 

Assessment base – assessable deposits consist of DIF deposits 

(deposits insured by the FDIC Deposit Insurance Fund) in 

banks’ domestic offices with certain adjustments). 

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other 

seller- provided credit enhancements. 

Capital Purchase Program (CPP) – As announced in October 

2008 under the TARP, the Treasury Department purchase of 

noncumulative perpetual preferred stock and related warrants 

that is treated as Tier 1 capital for regulatory capital purposes 

is included in “Total equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued 

by publicly traded banks are reflected as well in “Surplus.” 

Warrants to purchase common stock or noncumulative preferred stock of not-publicly traded bank stock classified in a 

bank’s balance sheet as “Other liabilities.” 

Construction and development loans – includes loans for all property types under construction, as well as loans for land acquisition and development. 

Core capital – common equity capital plus noncumulative perpetual preferred stock plus minority interest in consolidated 

subsidiaries, less goodwill and other ineligible intangible 

assets. The amount of eligible intangibles (including servicing 

rights) included in core capital is limited in accordance with 

supervisory capital regulations. 

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets. 

Credit enhancements – techniques whereby a company attempts 

to reduce the credit risk of its obligations. Credit enhancement may be provided by a third party (external credit 

enhancement) or by the originator (internal credit enhancement), and more than one type of enhancement may be associated with a given issuance. 

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

Association (SAIF) Insurance Funds were merged in 2006 by 

the Federal Deposit Insurance Reform Act to form the DIF. 

Derivatives notional amount – The notional, or contractual, 

amounts of derivatives represent the level of involvement in 

the types of derivatives transactions and are not a quantification of market risk or credit risk. Notional amounts represent 

the amounts used to calculate contractual cash flows to be 

exchanged. 

Derivatives credit equivalent amount – the fair value of the 

derivative plus an additional amount for potential future credit exposure based on the notional amount, the remaining 

maturity and type of the contract. 

Derivatives transaction types: 

Futures and forward contracts – contracts in which the buyer 

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

future date, a specific quantity of an underlying variable or 

index at a specified price or yield. These contracts exist for 

a variety of variables or indices (traditional agricultural or 

physical commodities, as well as currencies and interest 

rates). Futures contracts are standardized and are traded 

on organized exchanges, which set limits on counterparty 

credit exposure. Forward contracts do not have standardized 

terms and are traded over the counter. 

Option contracts – contracts in which the buyer acquires the 

right to buy from or sell to another party some specified 

amount of an underlying variable or index at a stated price 

(strike price) during a period or on a specified future date, 

in return for compensation (such as a fee or premium). The 

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 percentage 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 percentage 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. 

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Estimated insured deposits – In general, insured deposits are 

total domestic deposits minus estimated uninsured deposits. 

Beginning March 31, 2008, for institutions that file Call 

reports, insured deposits are total assessable deposits minus 

estimated uninsured deposits. Beginning September 30, 2009, 

insured deposits include deposits in accounts of $100,000 to 

$250,000 that are covered by a temporary increase in the 

FDIC’s standard maximum deposit insurance amount 

(SMDIA). 

Failed/assisted institutions – An institution fails when regulators take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the 

FDIC to provide funds to cover losses. An institution is 

defined as “assisted” when the institution remains open and 

receives assistance in order to continue operating. 

Fair Value – The valuation of various assets and liabilities on 

the balance sheet—including trading assets and liabilities, 

available-for-sale securities, loans held for sale, assets and liabilities accounted for under the fair value option, and foreclosed assets—involves the use of fair values. During periods 

of market stress, the fair values of some financial instruments 

and nonfinancial assets may decline. 

FHLB advances – all borrowings by FDIC insured institutions 

from the Federal Home Loan Bank System (FHLB), as reported by Call Report filers and by TFR filers. 

Goodwill and other intangibles – Intangible assets include servicing rights, purchased credit card relationships, and other identifiable intangible assets. Goodwill is the excess of the 

purchase price over the fair market value of the net assets 

acquired, less subsequent impairment adjustments. Other 

intangible assets are recorded at fair value, less subsequent 

quarterly amortization and impairment adjustments. 

Loans secured by real estate – includes home equity loans, 

junior liens secured by 1-4 family residential properties, and 

all other loans secured by real estate. 

Loans to individuals – includes outstanding credit card balances 

and other secured and unsecured consumer loans. 

Long-term assets (5+ years) – loans and debt securities with 

remaining maturities or repricing intervals of over five years. 

Maximum credit exposure – the maximum contractual credit 

exposure remaining under recourse arrangements and other 

seller-provided credit enhancements provided by the reporting bank to securitizations. 

Mortgage-backed securities – certificates of participation in 

pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored or 

private enterprises. Also, see “Securities,” below. 

Net charge-offs – total loans and leases charged off (removed 

from balance sheet because of uncollectibility), less amounts 

recovered on loans and leases previously charged off. 

Net interest margin – the difference between interest and dividends earned on interest-bearing assets and interest paid to 

depositors and other creditors, expressed as a percentage of 

average earning assets. No adjustments are made for interest 

income that is tax exempt. 

Net loans to total assets – loans and lease financing receivables, net of unearned income, allowance and reserves, as a 

percentage of total assets on a consolidated basis. 

Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and extraordinary items. Income taxes subtracted from 

operating income have been adjusted to exclude the portion 

applicable to securities gains (or losses). 

Noncurrent assets – the sum of loans, leases, debt securities, 

and other assets that are 90 days or more past due, or in nonaccrual status. 

Noncurrent loans & leases – the sum of loans and leases 90 days 

or more past due, and loans and leases in nonaccrual status. 

Number of institutions reporting – the number of institutions 

that actually filed a financial report. 

New charters – insured institutions filing quarterly financial 

reports for the first time. 

Other borrowed funds – federal funds purchased, securities sold 

with agreements to repurchase, demand notes issued to the 

U.S. Treasury, FHLB advances, other borrowed money, mortgage indebtedness, obligations under capitalized leases and 

trading liabilities, less revaluation losses on assets held in 

trading accounts. 

Other real estate owned – primarily foreclosed property. Direct 

and indirect investments in real estate ventures are excluded. 

The amount is reflected net of valuation allowances. For 

institutions that file a Thrift Financial Report (TFR), the valuation allowance subtracted also includes allowances for other 

repossessed assets. Also, for TFR filers the components of 

other real estate owned are reported gross of valuation 

allowances. 

Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their 

losses) compared to the same period a year earlier. 

“Problem” institutions – Federal regulators assign a composite 

rating to each financial institution, based upon an evaluation 

of financial and operational criteria. The rating is based on a 

scale of 1 to 5 in ascending order of supervisory concern. 

“Problem” institutions are those institutions with financial, 

operational, or managerial weaknesses that threaten their 

continued financial viability. Depending upon the degree of 

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

“5.” The number and assets of “problem” institutions are 

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. 

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Quarterly Banking Profile 

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

securities and extraordinary items) as a percentage of average 

total assets. The basic yardstick of bank profitability. 

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

securities and extraordinary items) as a percentage of average 

total equity capital. 

Risk-based capital groups – definition: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) Capital* Capital* Leverage Equity 

Well-capitalized ≥10 and ≥6 and ≥5 – 

Adequately 

capitalized ≥8 and ≥4 and ≥4 – 

Undercapitalized ≥6 and ≥3 and ≥3 – 

Significantly 

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

Critically 

undercapitalized – – – ≤2 

* As a percentage of risk-weighted assets. 

Risk Categories and Assessment Rate Schedule – The current risk 

categories became effective January 1, 2007. Capital ratios 

and supervisory ratings distinguish one risk category from 

another. The following table shows the relationship of risk 

categories (I, II, III, IV) to capital and supervisory groups as 

well as the initial base assessment rates (in basis points), 

effective April 1, 2009, for each risk category. Supervisory 

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

includes institutions with a CAMELS composite rating of 3; 

and Supervisory Group C generally includes institutions with 

CAMELS composite ratings of 4 or 5. For purposes of riskbased assessment capital groups, undercapitalized includes 

institutions that are significantly or critically 

undercapitalized. 

Capital Category 

Supervisory Group 

A B C 

1. Well Capitalized I 

12–16 bps II 

22 bps 

III 

32 bps 

2. Adequately Capitalized II 

22 bps 

3. Undercapitalized III 

32 bps 

IV 

45 bps 

Effective April 1, 2009, the initial base assessment rates are 

12 to 45 basis points. An institution’s total assessment rate 

may be less than or greater than its initial base assessment 

rate as a result of additional risk adjustments. 

The base assessment rates for most institutions in Risk 

Category I are based on a combination of financial ratios and 

CAMELS component ratings (the financial ratios method). 

For large institutions in Risk Category I (generally those with 

at least $10 billion in assets) that have long-term debt issuer 

ratings, assessment rates are determined by equally weighting 

the institution’s CAMELS component ratings, long-term debt 

issuer ratings, and the financial ratios method assessment rate. 

For all large Risk Category I institutions, additional risk factors are considered to determine whether assessment rates 

should be adjusted. This additional information includes market data, financial performance measures, considerations of 

the ability of an institution to withstand financial stress, and 

loss severity indicators. Any adjustment is limited to no more 

than 1 basis point. 

Effective April 1, 2009, the FDIC introduced three possible 

adjustments to an institution’s initial base assessment rate: 

(1) a decrease of up to 5 basis points for long-term unsecured 

debt and, for small institutions, a portion of Tier 1 capital; 

(2) an increase not to exceed 50 percent of an institution’s 

assessment rate before the increase for secured liabilities in 

excess of 25 percent of domestic deposits; and (3) for nonRisk Category I institutions, an increase not to exceed 10 

basis points for brokered deposits in excess of 10 percent of 

domestic deposits. After applying all possible adjustments, 

minimum and maximum total base assessment rates for each 

risk category are as follows: 

Total Base Assessment Rates* 

Risk 

Category I 

Risk 

Category 

II 

Risk 

Category 

III 

Risk 

Category 

IV 

Initial base 

assessment rate 12–16 22 32 45 

Unsecured debt 

adjustment -5–0 -5–0 -5–0 -5–0 

Secured liability 

adjustment 0–8 0–11 0–16 0–22.5 

Brokered deposit 

adjustment – 0–10 0–10 0–10 

Total base 

assessment rate 7–24.0 17–43.0 27–58.0 40–77.5 

*All amounts for all risk categories are in basis points annually. Total base rates that are 

not the minimum or maximum rate will vary between these rates. 

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

rate for a quarterly assessment period near the end of the 

quarter following the assessment period. Payment is generally 

due on the 30th day of the last month of the quarter following the assessment period. Supervisory rating changes are 

effective for assessment purposes as of the examination transmittal date. For institutions with long-term debt issuer ratings, changes in ratings are effective for assessment purposes 

as of the date the change was announced. 

Special Assessment – On May 22, 2009, the FDIC Board 

approved a final rule that imposed a 5 basis point special 

assessment as of June 30, 2009. The special assessment was 

levied on each insured depository institution’s assets minus 

its Tier 1 capital as reported in its report of condition as of 

June 30, 2009. The special assessment will be collected 

September 30, 2009, at the same time that the risk-based 

assessment for the second quarter of 2009 is collected. The 

special assessment for any institution was capped at 10 basis 

points of the institution’s assessment base for the second 

quarter of 2009 risk-based assessment. 

Prepaid Deposit Insurance Assessments – On November 12, 

2009, the FDIC Board of Directors adopted a final rule 

requiring insured depository institutions (except those that 

are exempted) to prepay their quarterly risk-based deposit 

insurance assessments for the fourth quarter of 2009, and for 

FDIC QUARTERLY 27 2010, VOLUME 4, NO. 1 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

all of 2010, 2011, and 2012, on December 30, 2009. Each 

institution’s regular risk-based deposit insurance assessment 

for the third quarter of 2009, which is paid in arrears, also is 

payable on December 30, 2009. 

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

definitions which include on-balance-sheet as well as offbalance-sheet items multiplied by risk-weights that range 

from zero to 200 percent. A conversion factor is used to assign 

a balance sheet equivalent amount for selected off-balancesheet accounts. 

Securities – excludes securities held in trading accounts. 

Banks’ securities portfolios consist of securities designated as 

“held-to-maturity,” which are reported at amortized cost 

(book value), and securities designated as “available-for-sale,” 

reported at fair (market) value. 

Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments 

for income taxes. Thrift Financial Report (TFR) filers also 

include gains (losses) on the sales of assets held for sale. 

Seller’s interest in institution’s own securitizations – the reporting 

bank’s ownership interest in loans and other assets that have 

been securitized, except an interest that is a form of recourse 

or other seller-provided credit enhancement. Seller’s interests 

differ from the securities issued to investors by the securitization structure. The principal amount of a seller’s interest is 

generally equal to the total principal amount of the pool of 

assets included in the securitization structure less the principal amount of those assets attributable to investors, i.e., in the 

form of securities issued to investors. 

Subchapter S Corporation – A Subchapter S corporation is treated as a pass-through entity, similar to a partnership, for federal income tax purposes. It is generally not subject to any 

federal income taxes at the corporate level. This can have the 

effect of reducing institutions’ reported taxes and increasing 

their after-tax earnings. 

Temporary Liquidity Guarantee Program (TLGP) – was approved 

by the FDIC Board on October 13, 2008. The TLGP was 

designed to help relieve the crisis in the credit markets by 

giving banks access to liquidity during a time of global financial distress. Participation in the TLGP is voluntary. The 

TLGP has two components: 

Transaction Account Guarantee Program (TAGP) provides a full 

guarantee of noninterest-bearing deposit transaction 

accounts above $250,000, at depository institutions that 

elected to participate in the program. On August 26, 2009, 

the FDIC Board voted to extend the TAGP six months 

beyond its original expiration date to June 30, 2010. 

Debt Guarantee Program (DGP) provides a full guarantee of 

senior unsecured debt1 issued by eligible institutions after 

October 14, 2008. Initially, debt issued before June 30, 

2009, and maturing on or before June 30, 2012, could be 

guaranteed. On March 17, 2009, the deadline for issuance 

under the program was extended to October 31, 2009, and 

the expiration of the guarantee was set at the earlier of 

maturity of the debt or December 31, 2012. Institutions 

eligible for participation in the debt guarantee program 

include insured depository institutions, U.S. bank holding 

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

that the FDIC designates as eligible entities. The FDIC 

Board adopted a final rule on October 20, 2009, that established a limited six-month emergency guarantee facility 

upon expiration of the DGP. 

Trust assets – market value, or other reasonably available 

value of fiduciary and related assets, to include marketable 

securities, and other financial and physical assets. Common 

physical assets held in fiduciary accounts include real estate, 

equipment, collectibles, and household goods. Such fiduciary 

assets are not included in the assets of the financial 

institution. 

Unearned income & contra accounts – unearned income for Call 

Report filers only. 

Unused loan commitments – includes credit card lines, home 

equity lines, commitments to make loans for construction, 

loans secured by commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for 

sale, which are accounted for as derivatives on the balance 

sheet.) 

Volatile liabilities – the sum of large-denomination time deposits, foreign-office deposits, federal funds purchased, securities 

sold under agreements to repurchase, and other borrowings. 

Yield on earning assets – total interest, dividend, and fee 

income earned on loans and investments as a percentage of 

average earning assets. 

1 Senior unsecured debt generally includes term federal funds 

purchased, promissory notes, commercial paper, unsubordinated 

unsecured notes, certificates of deposit (CDs) standing to the credit of 

a bank, and U.S. dollar denominated bank deposits owed to an insured 

depository institution. 

FDIC QUARTERLY 28 2010, VOLUME 4, NO. 1 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Feature Article: 

Measuring Progress in 

U.S. Housing and Mortgage Markets 

U.S. housing and mortgage markets have experienced 

historic distress over the past three years. Housing starts 

dropped from more than 2 million units in 2005 to only 

553,000 in 2009, while foreclosures soared from 780,000 

to about 3 million during the same period. However, 

the signs of eventual recovery are beginning to emerge. 

Home price declines have boosted affordability, which 

in turn helped to push existing home sales in the fourth 

quarter of 2009 to their highest level in almost three 

years. Meanwhile, a number of government initiatives, 

from mortgage modification programs to outright 

purchases of mortgage-backed securities (MBS), have 

been put in place to help stabilize these highly 

distressed markets. 

After more than three years of mostly unremitting bad 

news from the housing and mortgage sectors, analysts 

are now trying to evaluate the tentative signs of stabilization that emerged in late 2009. For example, home 

prices, by some measures, rose slightly on average for six 

consecutive months through November. Does this 

signal the “all clear” for homeowners and mortgage 

lenders? The answer is certainly “no.” At the same 

time, the combination of more affordable home prices, 

reduced inventory, and a leveling-off of home prices 

does suggest that a new equilibrium in the housing 

sector might not be that far off. 

What worries analysts is that the mortgage delinquencies, foreclosures, and distressed sales that have driven 

home prices sharply lower since 2006 will outlast the 

policy support that has been slowing foreclosures, lowering mortgage rates, and encouraging first-time homebuyers to enter the market. This chartbook examines 

U.S. housing and mortgage markets for tentative signs 

of recovery and evaluates those hopeful signs against 

the challenges that remain. 

Housing: Signs of Recovery 

After more than three years of decline, the beleaguered 

U.S. housing market has shown some apparent signs of 

stabilizing in recent months. Inventories are down, 

existing home sales are up, and residential construction 

activity has stopped falling, at least for the time being. 

In relative terms, these trends represent a welcome 

departure from the continuous deterioration of market 

conditions that began in 2006. 

Sales, Construction, and Inventories 

•	 The inventory of unsold new homes in December 

was 13 percent lower than one year ago (see 

Chart 1). 

Chart 1 

-20% 

-10% 

0% 

10% 

20% 

30% 

40% 

2005 2006 2007 2008 2009 

0 

2 

4 

6 

8 

10 

12 

14 

Sources: National Association of Realtors; U.S. Census (Haver Analytics). 

Existing and New Homes For Sale 

(Percent change, one year ago) 

Existing and New Homes For Sale 

(Months' supply) 

Housing Inventories Are Now Declining 

from Peak Levels 

•	 The months’ supply of existing homes on the market 

has fallen to the lowest levels since late 2006, while 

the supply of new homes on the market has also 

dropped from an all-time high of 12.4 months in 

January 2009. 

FDIC QUARTERLY 29 2010, VOLUME 4, NO. 1 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

•	 Home sales increased during 2009 in markets across 

the South, West, Northeast, and Midwest (see 

Chart 2). 

•	 Existing home sales nationwide are near their 

highest level in more than two years. 

•	 Although permit issuance and new residential 

construction generally remain weak across the 

nation, the rate of decline is slowing, possibly indicating a bottom in the market (see Chart 3). 

•	 Housing construction made its second consecutive 

positive contribution to gross domestic product 

growth in fourth quarter 2009, after more than three 

years of decline. 

•	 Residential real estate investment rose again in 

fourth quarter 2009, increasing at nearly an 

8 percent annual rate, albeit from an already 

depressed level. 

Continued Progress Hinges on Prices 

Just as falling home prices came to represent the fundamental source of uncertainty in mortgage markets after 

2006, so too will a sustainable recovery in housing 

markets depend on the stabilization and slow recovery 

of home prices. This is why indications of a leveling-off 

in home prices at more affordable levels during the 

second half of 2009 represent a hopeful sign that housing activity and mortgage credit distress may soon stabilize or even improve. 

•	 The S&P/Case-Shiller 10-city home price index 

registered a sixth consecutive monthly increase in 

November, with a 0.24 percent gain, following more 

than two years of declining prices (see Chart 4). 

•	 The year-over-year change in the home price index, 

while still negative, has progressively moved closer 

to zero for the ninth month in a row, reaching 

−4.5 percent in November. 

Chart 2 

Existing Home Sales Have Improved in 

Regions across the Nation 

Existing Home Sales 

(Thousands) 

3000 South 

2500 

2000 

1500 

1000 

500 

0 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 

Source: National Association of Realtors (data through fourth quarter 2009). 

Note: Data are seasonally adjusted at annual rates. 

Midwest 

West 

Northeast 

Chart 3 

Construction Activity, Starts, and Permits 

(Thousands of units) 

Residential Construction Spending 

(Billions of dollars) 

Residential Construction Has Reached a Bottom 

and Is Starting to Resume 

0 

500 

1000 

1500 

2000 

2500 

2005 2006 2007 2008 2009 

0 

100 

200 

300 

400 

500 

600 

700 

Source: U.S. Census (Haver Analytics). 

Chart 4 

10-City Home Price Index 

(Percent change, year-over-year) 

10-City Home Price Index 

(Percent change, month-to-month) 

The Decline in House Prices May Have 

Reached a Turning Point 

-20% 

-15% 

-10% 

-5% 

0% 

5% 

10% 

15% 

20% 

25% 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 

-4% 

-3% 

-2% 

-1% 

0% 

1% 

2% 

3% 

4% 

5% 

Source: S&P/Case Shiller (Haver Analytics). 

FDIC QUARTERLY 30 2010, VOLUME 4, NO. 1 
 

 

 

 

 

 

 

 

 

 

 

Housing and Mortgage Markets 

•	 Year-over-year declines in home prices have eased in 

several of the hardest hit housing markets, such as 

Las Vegas, Phoenix, Miami, and Detroit (see 

Chart 5). 

•	 Recent price trends may be either a sign of sustained 

recovery ahead or a temporary lull that will give way 

to further price declines once government stabilization programs begin to expire in early to mid-2010. 

•	 Home price declines and low interest rates have 

contributed to dramatically improved housing 

affordability during the past two years. 

•	 The National Association of Realtors’ Housing 

Affordability Index stood at 163.8 in December 

2009 (see Chart 6). This means that a family earning the median income had about 164 percent of the 

income needed to qualify to purchase the medianpriced home using a standard mortgage. 

•	 The December reading is well above the long-term 

average for the index and indicates that housing 

remains near its most affordable level in decades. 

•	 The improvement in housing affordability since late 

2007 extends to all 50 states (see Chart 7). 

•	 Affordability has particularly improved in some of 

the higher-priced coastal markets. In California, a 

family earning the median income can now qualify 

to purchase a home worth 115 percent of the 

median price, up from a level of just 60 percent in 

2007. 

Chart 5 

Year-Over-Year Change in Home Price Index 

(Percent) 

House Price Declines Are Starting to Ease 

in the Nation’s Worst Housing Markets 

Source: S&P/Case-Shiller. 

-40 

-30 

-20 

-10 

0 

10 

20 

30 

40 

50 

60 

00 03 06 09 00 03 06 09 00 03 06 09 00 03 06 09 

Las Vegas Phoenix Miami Detroit 

Chart 6 

Housing Affordability Remains Near 

Its Highest Level in Years 

Housing Affordability Index 

(Median income=qualifying income=100) 

60 

80 

100 

120 

140 

160 

180 

1971 1976 1982 1987 1993 1998 2004 2009 

Source: National Association of Realtors (Haver Analytics). 

Long-term average = 117 

Chart 7 

Housing Affordability Has Improved in All States 

Source: Moody’s Economy.com estimates. 

Note: A value of 100 on the Housing Affordability Index means that the family earning the 

median income can afford 100 percent of the traditional mortgage payment of the medianpriced home. The calculation assumes a mortgage loan with a 30-year maturity and a 

down payment of 20 percent. It also assumes that the monthly principal and interest 

payments do not exceed 25 percent of the median family income. 

Third Quarter 2007 

Third Quarter 2009 

0 - 70 

70 - 100 

100 - 130 

130 - 200 

200 - 275 

Housing Affordability Index 

FDIC QUARTERLY 31 2010, VOLUME 4, NO. 1 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreclosures Cloud an Uncertain Future 

Among the biggest challenges to a recovery in the 

housing market is the near-record high level of foreclosures and the excess inventory and distressed home 

sales those foreclosures could impose on the market. 

The more than tripling of the annual number of U.S. 

foreclosures since 2006 has destabilized the housing 

market and placed additional downward pressure on 

home prices in what became a self-reinforcing cycle. 

If both foreclosures and unemployment continue to 

increase, the housing market could retrench in coming 

months and the tentative recovery in housing fundamentals could falter. 

Foreclosures 

•	 Delinquencies and foreclosures have now spread into 

prime space. In fourth quarter 2009, the past-due 

rate for prime loans was near a record high 6.7 

percent. Prime fixed-rate loans accounted for 35 

percent of the foreclosure starts during the quarter 

(see Chart 8).1 

•	 The poor performance of prime fixed-rate loans will 

likely get worse because those loans represented an 

increasing share of loans 90 days or more past-due 

but not yet in foreclosure. 

•	 About 32 percent of home sales nationwide in 

December were distressed or foreclosure related.2 

•	 An estimated 2.82 million homes entered foreclosure 

during 2009, a marked increase from the estimated 

2.28 million foreclosures in 2008 (see Chart 9).3 

•	 The abundance of foreclosure resales has contributed 

to continued home price depreciation. 

•	 In California, nearly 5.6 percent of all mortgages 

were in foreclosure in fourth quarter 2009.4 

•	 Although foreclosure resales in California are declining, they remain an important consideration for 

both home buyers and sellers, accounting for 40 

percent of existing home sales in fourth quarter 2009 

(see Chart 10). 

1 Mortgage Bankers Association, National Delinquency Survey, Fourth 

Quarter 2009. 

2 National Association of Realtors, news release, January 25, 2010. 

3 FDIC estimates based on data from the Mortgage Bankers Association’s National Delinquency Survey for fourth quarter 2009. 

4 Mortgage Bankers Association. 

Chart 8 

0 

5 

10 

15 

20 

25 

2000 2003 2006 2009 

Subprime All

ARMs

Prime 

ARMs

All

0 

2 

4 

6 

8 

10 

12 

14 

16 

18 

2000 2003 2006 2009 

Subprime 

All

ARMs

Prime 

ARMs

All

Source: Mortgage Bankers Association (Haver Analytics). 

Mortgage Credit Distress Continued to Rise—and 

Spread to Prime Loans—as the Recession Deepened 

Conventional Loans Past Due 90+ Days 

(Percent) 

Conventional Loans in Foreclosure 

(Percent) 

Chart 9 

Still-Rising Foreclosures Raise Concerns about 

Distressed Sales and “Shadow Inventory” 

Estimated Annual Foreclosures 

(Thousands) 

3000 

2500 

2000 

1500 

1000 

500 

0 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 

Source: FDIC estimates based on Mortgage Bankers Association data. 

Chart 10 

In California, Foreclosure Resales Are Trending Down 

but Remain High 

Foreclosure Resales as a Share of Existing Home Sales 

(Percent) 

60 57.8 

54.4 

49.9 47.5 

42.7 

50 

40.7 

40 

33.1 

30 

19.0 

40.1 

20 

9.5 10 5.4 3.2 

0 

1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 

Source: DQNews.com Real Estate News & Custom Data. 

FDIC QUARTERLY 32 2010, VOLUME 4, NO. 1 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Housing and Mortgage Markets 

Shadow Inventory 

•	 The risk posed by still-rising foreclosures is that they 

will increase the pending supply, or shadow inventory, 

of homes not yet on the market. Shadow inventory 

is generally made up of current foreclosures and 

homes owned by delinquent borrowers that are 

likely to transition into the foreclosure pipeline. 

•	 Shadow inventory, which is estimated to be 1.7 

million units as of third quarter 2009, may increase 

the already high proportion of distressed or foreclosed home resales.5 

Credit Availability: Continued Strains 

While the national housing market is showing some 

signs of recovery, credit markets for residential mortgages continue to be stressed. Tightened credit standards, declining consumer net worth, rising delinquency 

and foreclosure rates, the lack of private MBS issuance, 

and the collapse of the subprime market have limited 

funding channels and lending opportunities. Government programs and agencies have filled the void largely 

through policy initiatives and implicit or explicit 

guarantees. 

Tightened Credit Standards 

Poor mortgage loan performance has prompted tighter 

underwriting standards. 

•	 Residential credit quality has deteriorated. The 

noncurrent ratio for one-to-four single-family 

mortgages increased to a record high 9.9 percent in 

fourth quarter 2009, nearly double the level of one 

year ago. 

•	 Banks have tightened credit standards on residential 

mortgage loans. The Federal Reserve’s January 

survey indicated that banks tightened lending standards, on net, for both prime and nontraditional 

mortgages (see Chart 11). 

Chart 11 

Banks Continue to Tighten Lending Standards 

for Residential Mortgages 

Net Percentage of Domestic Respondents Tightening Standards 

-40 

-20 

0 

20 

40 

60 

80 

100 

91 93 95 97 99 01 03 05 07 

-40 

-20 

0 

20 

40 

60 

80 

100 

2Q07 1Q08 4Q08 3Q09 

Prime 

Subprime 

1Q10 

All Residential Mortgages 

Non- traditional 

Source: Federal Reserve Senior Loan Officer Opinion Survey, January 2010. 

Notes: All residential mortgage data from 1Q91 to 1Q07. The subprime series was 

discontinued after 1Q09. 

Shift in the Composition of Mortgage Funding 

The most significant result of deteriorating credit 

quality and tightened lending standards has been the 

collapse of the private MBS market and a shift toward 

conforming mortgage originations. 

•	 Through third quarter 2009, 67 percent of new 

mortgage originations were conforming mortgages 

that could be readily sold in the agency MBS 

market, compared with 33 percent in 2006.6 

•	 The pace of jumbo mortgage lending increased 

during the first nine months of 2009, although it 

remained far below the level reached at the peak of 

the market (see Chart 12). 

Chart 12 

Jumbo Mortgage Originations Fell Sharply in 2008 

and Remain at Low Levels 

$0 

$100 

$200 

$300 

$400 

$500 

$600 

$700 

2000 2002 2004 2006 2008 1Q 

08 

2Q 

08 

3Q 

08 

4Q 

08 

1Q 

09 

2Q 

09 

3Q 

09 

0% 

5% 

10% 

15% 

20% 

25% 

30% 

Jumbo Mortgage Originations 

(Billions of dollars) 

Jumbo Market Share 

(Percent of total originations) 

Source: Inside Mortgage Finance. 

5 First American CoreLogic, Media Alert, December 17, 2009. 6 Inside Mortgage Finance, November 27, 2009. 

FDIC QUARTERLY 33 2010, VOLUME 4, NO. 1 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

•	 The volume of jumbo mortgage originations for 

2009 now appears on track to match 2008 levels. 

•	 The change in mortgage production has created a 

fundamental shift in the composition of mortgage 

funding. 

•	 The government-sponsored enterprises (GSEs) 

Fannie Mae and Freddie Mac and the government 

mortgage insurance program Ginnie Mae together 

account for more than 95 percent of total MBS 

issuance since 2008.7 

•	 Federal Housing Administration (FHA) and 

Department of Veterans Affairs (VA) guaranteed 

mortgage loan originations accounted for almost 

one-quarter (24 percent) of mortgage originations 

through third quarter 2009, up from a low of 2.7 

percent in 2006 (see Chart 13).8 

Chart 13 

The Popularity of FHA and VA Loans Has Jumped 

in the Face of Tight Credit 

FHA / VA Mortgage Originations 

(Billions of dollars) 

FHA / VA Market Share 

(Percent of total originations) 

$0 

$50 

$100 

$150 

$200 

$250 

$300 

$350 

2000 2002 2004 2006 2008 1Q 

08 

2Q 

08 

3Q 

08 

4Q 

08 

1Q 

09 

2Q 

09 

3Q 

09 

0% 

5% 

10% 

15% 

20% 

25% 

30% 

35% 

40% 

Source: Inside Mortgage Finance. 

•	 FHA-insured mortgages will remain a strong force in 

the mortgage market, but the rate of increase may 

slow as the result of the recently announced tightening of standards. 

•	 The GSEs’ higher conforming loan limits and the 

FHA’s higher mortgage limit are helping to support 

housing markets by increasing the availability of 

mortgages for homes in higher-priced areas. 

7 Inside MBS & ABS, December 18, 2009. 

8 Inside Mortgage Finance, November 27, 2009. 

Government Adds Liquidity to the Market 

Throughout 2009, the government added liquidity to 

the flagging mortgage credit markets as the Federal 

Reserve and the U.S. Treasury became primary purchasers of agency MBS. 

•	 The Federal Reserve’s net purchases of agency 

securitizations during 2009 totaled $1.11 trillion, 

representing 65 percent of the total $1.71 trillion in 

agency MBS issued during 2009.9 

•	 The government is likely to remain a major investor 

in the flagging mortgage market for now with its 

commitment to purchase a total of $1.25 trillion in 

agency MBS by the end of first quarter 2010. 

•	 Together, the Federal Reserve and Treasury hold 

an estimated 12 percent of total agency MBS 

outstanding.10 

•	 The GSEs have spurred issuance of MBS by adding 

liquidity to a constrained mortgage market. The 

$1.71 trillion dollars of agency MBS issued during 

2009 represents nearly a 47 percent increase from 

2008 (see Chart 14).11 

Chart 14 

Government-Sponsored Enterprises Have Boosted 

MBS Issuance to Add Liquidity to the 

Flagging Mortgage Market 

MBS Issuance 

(Billions of dollars) 

0 

50 

100 

150 

200 

250 

300 

Mar 

08 

May 

08 

Jul 

08 

Sep 

08 

Nov 

08 

Jan 

09 

Mar 

09 

May 

09 

Jul 

09 

Sep 

09 

Nov 

09 

Non-Agency 

Freddie Mac 

Fannie Mae 

Ginnie Mae 

Source: Inside MBS and ABS. 

•	 Ginnie Mae MBS issuance during 2009 was 66 

percent higher than in 2008.12 

9 Federal Reserve Bank of New York; Inside MBS & ABS, 

January 22, 2010. 

10 Inside MBS & ABS, September 25, 2009. 

11 Inside MBS & ABS, January 22, 2010. 

12 Ibid. 

FDIC QUARTERLY 34 2010, VOLUME 4, NO. 1 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Housing and Mortgage Markets 

•	 In contrast, non-agency issuance during 2009 was 

almost flat, at only 3.5 percent above the 2008 level. 

Non-agency market share in 2009 was just 3.4 

percent of total MBS issuance.13 

Mortgage Originations Increased in 2009 

Mortgage originations were strong throughout the 

middle of the decade before declining substantially with 

the onset of the subprime mortgage crisis. 

•	 Mortgage market turmoil since 2007 has necessitated tighter credit standards and a realignment of 

funding sources, resulting in a greater government 

role in providing liquidity to the market. 

•	 Mortgage originations peaked in 2003 at almost 

$4 trillion. By 2008, mortgage originations had 

fallen to $1.5 trillion for the year, the lowest level 

since 2000 (see Chart 15).14 

•	 The Federal Reserve’s purchases of agency MBS in 

2009 helped to reduce mortgage rates to historically 

low levels and generate a refinancing boom (see 

Chart 16). 

•	 Refinance originations surged to 76 percent of originations in the first half of 2009. Refinancing activity 

slowed around mid-year as mortgage rates increased, 

but it picked up again in the second half of 2009 as 

rates fell.15 

•	 The Mortgage Bankers Association expects that 

total mortgage production in 2009 rose by about 

40 percent to $2.1 trillion, largely on the strength of 

refinancing originations.16 

•	 Total originations are expected to decline by 40 

percent in 2010 to $1.3 trillion, as the drop in refinancing originations in 2010 will far outweigh the 

expected 5 percent increase in purchase originations. 

•	 A key question going forward is the extent to which 

mortgage rates may rise in 2010 as some government 

support programs expire. 

13 Ibid. 

14 Inside Mortgage Finance, November 27, 2009. 

15 Ibid. 

16 Mortgage Bankers Association, Mortgage Finance Forecast, 

January 12, 2010. 

Chart 15 

Mortgage Originations Declined Steadily from 

2005 to 2008 but Likely Increased in 2009 

Total Mortgage Originations 

(Billions of dollars) 

S&P/Case-Shiller Home Price Index 

(Q1 2000 = 100) 

$0 

$500 

$1,000 

$1,500 

$2,000 

$2,500 

$3,000 

$3,500 

$4,000 

$4,500 

2000 2002 2004 2006 2008 1Q 

08 

2Q 

08 

3Q 

08 

4Q 

08 

1Q 

09 

2Q 

09 

3Q 

09 

0 

20 

40 

60 

80 

100 

120 

140 

160 

180 

200 

Sources: Inside Mortgage Finance; S&P, Case-Shiller/Fiserv. 

Chart 16 

Mortgage Interest Rates Declined to 

Near-Historic Lows in 2009 

Interest Rate 

(Percent) 

0 

1 

2 

3 

4 

5 

6 

7 

8 

9 

Aug05 Dec05 Apr06 Aug06 Dec06 Apr07 Aug07 Dec07 Apr08 Aug08 Dec08 Apr09 Aug09 Dec09 

30-year jumbo mortgage 

Sources: Wall Street Journal; Federal Reserve Board (Haver Analytics). 

30-year conventional mortgage 

10-year constant Treasury maturity 

Conclusion 

The U.S. housing market showed tangible signs of 

improvement in 2009 as home price indices stabilized, 

inventories declined, and housing affordability reached 

historic high levels. Improvements in these fundamentals are still tentative, however, and are at risk of faltering after the withdrawal of the exceptional government 

support that helped to stabilize the housing and mortgage markets in 2009. Even if the signs of recovery 

continue, residential construction, home prices, and 

lending activity may remain subdued for years. But after 

more than three years of historic turmoil, a return to 

stable and self-sustaining housing and mortgage markets 

would bring welcome relief to lenders, homeowners, 

and the U.S. economy as a whole. 

Authors: Cynthia Angell, Financial Economist 

Robert M. Miller, Economic Analyst 

FDIC QUARTERLY 35 2010, VOLUME 4, NO. 1 
 

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