Quarterly Banking Profile Second Quarter 2007 

INSURED INSTITUTION PERFORMANCE
 

■ Quarterly Net Income of $36.7 Billion Is Fourth-Highest Ever 

■ Net Interest Margins Register Modest Gains Over First Quarter 

■ Loss Provisions Continue to Rise at Large Institutions 

■ Increase in Noncurrent Loans Is Largest Since 1990 

■ Foreign Office Deposits Increase Sharply 

Higher Expenses Hold Down Earnings 

Industry earnings remained strong in the second quarter of 

2007, despite an operating environment that was decidedly 

less favorable than in earlier quarters. A flat yield curve, 

rising levels of troubled loans, and a weak housing market 

all made the task of improving earnings more difficult. 

Insured commercial banks and savings institutions reported 

$36.7 billion in net income for the quarter, a decline of 

$1.3 billion (3.4 percent) from the second quarter of 2006, 

but $772 million (2.1 percent) more than they earned in 

the first quarter of 2007. The decline in earnings compared to a year ago was caused by higher provisions for 

loan losses, particularly at larger institutions, and by 

increased noninterest expenses. The impact of these higher costs was partly offset by increased noninterest income 

and net interest income. For the second consecutive quarter, fewer than half of all insured institutions reported 

higher quarterly earnings than a year earlier. The average 

return on assets (ROA) for the second quarter was 1.21 

percent, down from 1.34 percent in the second quarter of 

2006. More than half of all institutions — 59 percent — 

reported lower ROAs than a year earlier. There were 824 

institutions reporting net losses for the quarter, compared 

to 600 unprofitable institutions a year earlier. This is the 

largest year-over-year increase in unprofitable institutions 

since the third quarter of 1996. The increase in unprofitable institutions was greatest among institutions with less 

than $1 billion in assets, and among institutions with high 

levels of residential real estate and commercial loan exposures. The proportion of unprofitable institutions — 9.6 

percent of all insured institutions — was the highest level 

for a second quarter since 1991. More than half of the 

unprofitable institutions (52.2 percent) were less than five 

years old. 

Loss Provisions Rise Significantly 

Insured institutions added $11.4 billion in provisions for 

loan losses to their reserves during the second quarter, the 

largest quarterly loss provision for the industry since the 

fourth quarter of 2002. This was $4.9 billion (75.3 percent) more than they set aside in the second quarter of 

Chart 1 Chart 2 

29.5 30.2 30.4 31.1 31.8 31.2 32.5 31.1 

34.0 34.3 34.7 

32.7 

36.9 38.0 38.1 

35.4 36.0 36.7 

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

0 

10 

20 

30 

40 

$ Billions 

Securities and Other Gains/Losses, Net 

Net Operating Income 

2003 2004 2005 2006 2007 

Industry Has Second Consecutive Year-over-Year 

Decline in Earnings 

4.9 

5.6 

2.8 

5.6 

0.3 

0.0 

2.0 

4.0 

6.0 

8.0 

2nd Quarter 2006 to 2nd Quarter 2007 ($ Billions) 

Positive 

Factors 

Negative 

Factors 

Increase in 

Net Interest 

Income 

Increase in 

Noninterest 

Income 

Increase in 

Loan Loss 

Provision 

Increase in 

Gains on 

Securities Sales 

Increase in 

Noninterest 

Expense 

Higher Loss Provisions Contribute to 

Earnings Decline 

FDIC QUARTERLY 1 2007, VOLUME 1, NO. 2 
 

 

2006. At institutions with assets greater than $1 billion, loss 

provisions absorbed 7.7 percent of net operating revenue (net 

interest income plus total noninterest income); a year earlier, 

provisions siphoned off only 4.5 percent of revenue. 

Noninterest expenses were $5.6 billion (6.6 percent) higher 

than a year earlier. Spending for salaries and other employee 

benefits was up by $3.5 billion (9.1 percent). The greatest 

positive contribution to earnings came from noninterest 

income, which grew by $5.6 billion (9.0 percent). The 

improvement in noninterest income was led by higher trading revenue (up $1.4 billion, or 28.5 percent), increased servicing income (up $1.1 billion, or 25.1 percent), and increased 

fiduciary income (up $1.0 billion, or 15.8 percent, at institutions filing Call Reports). 

Earning Asset Growth Lifts Net Interest Income 

Net interest income also made a positive contribution to 

earnings; at $88.6 billion, it was $2.8 billion (3.3 percent) 

higher than a year earlier, because interest-earning assets were 

6.6 percent greater. The growth in earning assets overcame a 

12 basis-point decline in the industry’s average net interest 

margin between the second quarter of 2006 and the second 

quarter of 2007 to produce the year-over-year improvement 

in net interest income. More than two out of every three 

institutions (67.1 percent) reported margins below their yearago levels. The average net interest margin in the second 

quarter was 3.34 percent, compared to 3.46 percent a year 

earlier, but it was above the 3.32 percent average in the first 

quarter of 2006. 

Chart 3 

Charge-offs Continue to Rise 

Net charge-offs totaled $9.2 billion in the second quarter, the 

highest quarterly total since the fourth quarter of 2005, and 

$3.1 billion (51.2 percent) more than in the second quarter 

of 2006. This was the second consecutive quarter that net 

charge-offs have had a year-over-year increase. The loan categories with the largest increases in net charge-offs included 

consumer loans other than credit cards (up $757 million, or 

60.9 percent), commercial and industrial (C&I) loans (up 

$577 million, or 71.4 percent), residential mortgage loans (up 

$422 million, or 144.3 percent), and credit card loans (up 

$393 million, or 12.1 percent). All of the major loan categories posted both increased net charge-offs and higher net 

charge-off rates. 

Real Estate Leads the Growth in Noncurrent Loans 

The amount of loans and leases that were noncurrent (loans 

90 days or more past due or in nonaccrual status) grew by 

$6.4 billion (10.6 percent) during the quarter. This is the 

largest quarterly increase in noncurrent loans since the fourth 

quarter of 1990, and marks the fifth consecutive quarter that 

the industry’s inventory of noncurrent loans has grown. 

Almost half of the increase (48.1 percent) consisted of residential mortgage loans. Noncurrent mortgages increased by 

$3.1 billion (12.6 percent) during the quarter. Real estate 

construction and development loans accounted for more than 

a third (34.2 percent) of the increase in noncurrent loans. 

Chart 4 

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

2.5 

3.0 

3.5 

4.0 

4.5 

Net Interest Margin (%) 

Assets > $100 Million 

Assets < $100 Million 

2003 2004 2005 2006 2007

4.12 

3.33 

Large and Small Institutions Saw Margins 

Improve Slightly 

Home Equity Lines of Credit 

First Lien Mortgages 

Closed-End Junior 

Lien Mortgages 

3/31/04 9/30/04 3/31/05 9/30/05 3/31/06 9/30/06 3/31/07 

0.00 

0.20 

0.40 

0.60 

0.80 

1.00 

1.20 

1.40 

Percent Noncurrent 

Note: Noncurrent rates on loans secured by 1-4 family residential properties. 

The Run-Up in Noncurrent Mortgages Has Been 

Led by First Liens 

FDIC QUARTERLY 2 2007, VOLUME 1, NO. 2 
 

 

 

Quarterly Banking Profile 

Noncurrent construction loans increased by $2.2 billion (39.5 

percent) during the quarter. The amount of home equity 

lines of credit that were noncurrent increased by $407 million (16.6 percent) during the quarter. The industry’s noncurrent loan rate, which was at an all-time low of 0.70 

percent at the end of the second quarter of 2006, rose from 

0.83 percent to 0.90 percent during the second quarter. This 

is the highest noncurrent rate for the industry in three years. 

Pace of Reserve Growth Picks Up 

Banks and thrifts grew their loss reserves by $2.6 billion (3.2 

percent) during the quarter, as loss provisions of $11.4 billion 

surpassed net charge-offs of $9.2 billion. The $2.6-billion rise 

in loss reserves was the largest quarterly increase since the 

first quarter of 2002, but it barely kept pace with growth in 

the industry’s loans and leases. The ratio of reserves to total 

loans increased from 1.08 percent to 1.09 percent during the 

quarter, but remains near the 32-year low of 1.07 percent 

reached at the end of 2006. For the fifth quarter in a row, 

reserves failed to keep pace with the increase in noncurrent 

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

to noncurrent loans fell from $1.30 in reserves for every $1.00 

of noncurrent loans to $1.21 during the quarter. This is the 

lowest level for the coverage ratio since the third quarter of 

2002. Reserves increased at 60 percent of institutions during 

the quarter. 

Chart 5 

Securities Depreciation Limits Growth in Equity 

Equity capital increased by only $11.4 billion (0.9 percent), 

the smallest quarterly increase in seven quarters. Declining 

market values for securities held for sale limited the growth in 

equity during the quarter. Net unrealized losses on securities 

at insured banks that file Call Reports grew from $6.1 billion 

to $20.6 billion during the quarter. Under Generally 

Accepted Accounting Principles (GAAP), these unrealized 

losses are subtracted from equity. The industry’s ratio of equity to total assets fell from 10.58 percent to 10.43 percent during the quarter. 

Commercial Lending Remains Strong 

Total assets grew by $279.9 billion (2.3 percent) in the quarter, led by a $188.4-billion (2.6-percent) increase in loans 

and leases. C&I loans increased by a quarterly record $51.3 

billion (4.1 percent), home equity lines of credit grew by 

$19.9 billion (3.6 percent), credit card loans increased by 

$18.7 billion (5.3 percent), residential mortgage loans rose by 

$18.8 billion (0.9 percent), and real estate construction loans 

increased by $17.9 billion (3.1 percent). In addition to the 

growth in loans, assets in trading accounts grew by $43.9 billion (6.4 percent) in the quarter. Interest-bearing balances 

due from depository institutions increased by $36.6 billion 

(20.1 percent), with most of the growth occurring at a few 

large banks. Mortgage-backed securities increased by $21.6 

billion (1.8 percent). Total mortgage assets increased by 

Chart 6 

9 

8 

7 

9 

7 7 

8 

10 

6 6 

7 

8 8 

9 

8 

7 7 

8 

6 6 

9 9 

6 

7 

8 

10 

9 

11 

03/04 09/04 03/05 09/05 03/06 09/06 03/07 

0 

3 

6 

9 

12 

15 

$ Billions 

Loss Provisions 

Net Charge-offs 

Provisions Continue to Exceed Charge-offs 

3/03 9/03 3/04 9/04 3/05 9/05 3/06 9/06 3/07 

15 

30 

45 

60 

75 

90 

$ Billions 

25 

50 

75 

100 

125 

150 

175 

Coverage Ratio* (%) 

*Loan-loss reserves to noncurrent loans. 

Noncurrent Loans ($) 

Loan-Loss Reserves ($) 

Coverage Ratio (%) 

Growth in Noncurrent Loans Is Outpacing the 

Rise in Loss Reserves 

FDIC QUARTERLY 3 2007, VOLUME 1, NO. 2 
Author: 

Author: 

 

$60.3 billion (1.5 percent) in the second quarter, accounting 

for just over one-fifth of all asset growth. 

Small Business Lending Grew More Rapidly 

in the Past Year 

Data on lending to small businesses and farms, collected 

annually as of midyear, show that lending to small business 

accelerated during the last 12 months. Loans of less than $1 

million to C&I borrowers grew by $28.5 billion (9.6 percent) 

between June 30, 2006 and June 30, 2007. This is the largest 

increase for these loans in the 12 years for which growth data 

are available. The 9.6-percent growth rate is substantially 

greater than the 3.5-percent growth registered in the 2005 ­

2006 period. The growth rates for loans to small businesses 

and farms remained below the growth rates of lending to larger borrowers, as has been the case throughout much of the 

period that small business loan data have been reported. 

Record Growth in Foreign Office Deposits 

Deposits in foreign offices increased by a record $143.3 billion (11.9 percent) during the quarter, as a few large banks 

shifted their funding away from deposits in domestic offices. 

Nondeposit liabilities increased by $128.3 billion (4.6 percent) during the quarter. Deposits in domestic offices 

declined by $3.2 billion (0.05 percent), the first time since 

Chart 7 

Small C & I Loans Had Strong Growth Over the 

Past Year 

12-Month Change ($ Billions) 

75 

13 

77 

22 13 9 

-2 

-15 

-85 

-28 

-9 

Large Businesses 

Small Businesses 

8 

91 

10 

75 

9 

71 

28 

100 

75 

50 

25 

0 

-25 

-50 

-75 

-100 

1999 2000 2001 2002 2003 2004 2005 2006 2007 

the third quarter of 2003 that domestic deposits have fallen. 

Short-term (less than 1 year) nondeposit borrowings grew by 

$66.8 billion (14.9 percent) during the quarter at banks filing 

Call Reports. 

“Problem List” Registers Modest Increase 

The number of insured institutions reporting financial results 

fell from 8,649 in the first quarter to 8,615 in the second 

quarter, a net decline of 34 institutions. There were 48 new 

charters added during the second quarter, and 81 insured 

institutions were absorbed by mergers. No insured institution 

failed in the second quarter. During the quarter, two mutually-owned savings institutions, with $2.9 billion in combined 

assets, converted to stock ownership. The number of institutions on the FDIC’s “Problem List” increased from 53 to 61 

during the quarter, and total assets of “problem” institutions 

grew from $21.5 billion to $23.1 billion. At the end of the 

third quarter of 2006, there were 47 “problem” institutions, 

the fewest in at least 36 years. Since then, the number and 

assets of “problem” institutions have risen in each successive 

quarter, although they remain low by historical standards. 

Author: Ross Waldrop, Sr. Banking Analyst 

Division of Insurance and Research, FDIC 

(202) 898-3951 

Chart 8

Large Banks Funded Growth with Foreign Deposits 

Quarterly Change ($ Billions) 

150 

125 

100 

75 

50 

25 

0 

-25 

157 154 

143 140 

109 110 106 99 

90 

80 

67 64 

36 37 

16 18 14 8 6 

Deposits in Foreign Offices Deposits in Domestic Offices -3 

1 2 3 4 1 2 3 4 1 2 

2005 2006 2007 

FDIC QUARTERLY 4 2007, VOLUME 1, NO. 2 
 

 

Quarterly Banking Profile 

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

Return on assets (%) ................................................................ 1.21 1.34 1.28 1.30 1.28 1.38 1.30 

Return on equity (%) ................................................................. 11.49 12.97 12.31 12.73 13.20 15.05 14.08 

Core capital (leverage) ratio (%) ............................................... 8.18 8.23 8.23 8.25 8.11 7.88 7.86 

Noncurrent assets plus 

other real estate owned to assets (%) ................................... 0.61 0.47 0.53 0.50 0.53 0.75 0.90 

Net charge-offs to loans (%) ..................................................... 0.47 0.34 0.39 0.50 0.56 0.78 0.97 

Asset growth rate (%) ............................................................... 6.38 10.04 9.03 7.64 11.36 7.58 7.20 

Net interest margin (%) ............................................................. 3.33 3.45 3.31 3.50 3.52 3.73 3.96 

Net operating income growth (%) ............................................. -2.36 13.18 8.54 11.43 4.02 16.39 17.58 

Number of institutions reporting ................................................ 8,615 8,777 8,680 8,833 8,976 9,181 9,354 

Commercial banks ................................................................. 7,350 7,478 7,401 7,526 7,631 7,770 7,888 

Savings institutions ................................................................ 1,265 1,299 1,279 1,307 1,345 1,411 1,466 

Percentage of unprofitable institutions (%) ............................... 9.39 6.81 7.88 6.22 5.97 5.99 6.67 

Number of problem institutions ................................................. 61 50 50 52 80 116 136 

Assets of problem institutions (in billions) ................................. $23 $6 $8 $7 $28 $30 $39 

Number of failed/assisted institutions ....................................... 1 0 0 0 4 3 11 

* Excludes insured branches of foreign banks (IBAs).
 

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

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

(dollar figures in millions) 

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

2nd Quarter 

2007 

1st Quarter 

2007 

2nd Quarter 

2006 

%Change 

06:2-07:2 

8,615 8,649 8,777 -1.8 

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

CONDITION DATA 

2,220,904 2,223,357 2,198,688 1.0 

Total assets ......................................................................................................... $12,261,029 $11,981,172 $11,526,174 6.4 

Loans secured by real estate ........................................................................... 4,618,464 4,536,194 4,392,350 5.1 

1-4 Family residential mortgages .................................................................. 2,188,092 2,169,281 2,155,744 1.5 

Nonfarm nonresidential ................................................................................. 942,834 921,435 863,912 9.1 

Construction and development ...................................................................... 600,138 582,260 517,514 16.0 

Home equity lines .......................................................................................... 576,682 556,765 556,196 3.7 

Commercial & industrial loans .......................................................................... 1,300,571 1,249,282 1,157,134 12.4 

Loans to individuals .......................................................................................... 980,817 945,368 933,021 5.1 

Credit cards ................................................................................................... 372,853 354,159 374,348 -0.4 

Farm loans ....................................................................................................... 55,615 52,888 52,706 5.5 

Other loans & leases ........................................................................................ 512,946 495,542 527,255 -2.7 

Less: Unearned income ................................................................................... 3,068 2,288 2,460 24.7 

Total loans & leases ......................................................................................... 7,465,345 7,276,986 7,060,007 5.7 

Less: Reserve for losses .................................................................................. 81,198 78,643 77,918 4.2 

Net loans and leases ........................................................................................ 7,384,147 7,198,343 6,982,089 5.8 

Securities .......................................................................................................... 1,976,771 1,970,236 1,970,901 0.3 

Other real estate owned ................................................................................... 7,990 6,958 5,218 53.1 

Goodwill and other intangibles ......................................................................... 435,932 423,517 390,400 11.7 

All other assets ................................................................................................. 2,456,189 2,382,118 2,177,565 12.8 

Total liabilities and capital ................................................................................... 12,261,029 11,981,172 11,526,174 6.4 

Deposits ........................................................................................................... 8,035,257 7,895,117 7,504,805 7.1 

Domestic office deposits ............................................................................... 6,691,674 6,694,841 6,436,734 4.0 

Foreign office deposits .................................................................................. 1,343,583 1,200,276 1,068,070 25.8 

Other borrowed funds ....................................................................................... 2,248,685 2,174,393 2,217,951 1.4 

Subordinated debt ............................................................................................ 172,377 165,328 142,876 20.6 

All other liabilities .............................................................................................. 525,377 478,446 476,925 10.2 

Equity capital .................................................................................................... 1,279,333 1,267,888 1,183,616 8.1 

Loans and leases 30-89 days past due ............................................................... 74,433 70,396 55,167 34.9 

Noncurrent loans and leases ............................................................................... 66,944 60,549 49,138 36.2 

Restructured loans and leases ............................................................................ 3,277 2,872 3,365 -2.6 

Direct and indirect investments in real estate ...................................................... 1,081 1,033 1,122 -3.7 

Mortgage-backed securities ................................................................................ 1,217,859 1,196,292 1,213,804 0.3 

Earning assets ..................................................................................................... 10,720,947 10,513,956 10,056,268 6.6 

FHLB Advances .................................................................................................. 608,433 607,501 622,592 -2.3 

Unused loan commitments .................................................................................. 8,084,733 7,821,992 7,557,799 7.0 

Trust assets ......................................................................................................... 21,047,497 19,928,708 17,549,892 19.9 

Assets securitized and sold*** ............................................................................. 1,714,556 1,661,359 1,004,034 70.8 

Notional amount of derivatives*** ........................................................................ 153,825,897 146,085,265 120,205,407 28.0 

INCOME DATA 

2nd Quarter 

2006 

%Change 

06:2-07:2 

First Half 

2007 

First Half 

2006 %Change 

2nd Quarter 

2007 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

$357,622 $314,081 13.9 $181,788 $162,982 11.5 

182,850 145,487 25.7 93,234 77,272 20.7 

174,772 168,594 3.7 88,554 85,710 3.3 

20,541 12,400 65.7 11,351 6,475 75.3 

130,241 123,410 5.5 68,013 62,417 9.0 

178,099 169,364 5.2 90,635 85,040 6.6 

2,186 948 130.7 597 278 114.2 

35,079 36,830 -4.8 17,970 19,157 -6.2 

-829 468 NM -474 275 NM 

72,652 74,826 -2.9 36,734 38,007 -3.4 

17,294 11,517 50.2 9,164 6,060 51.2 

66,973 40,505 65.3 40,837 21,662 88.5 

5,679 34,320 -83.5 -4,104 16,346 NM 

72,001 73,745 -2.4 36,823 37,551 -1.9 

*** Call Report filers only. NM - Not Meaningful 

FDIC QUARTERLY 5 2007, VOLUME 1, NO. 2 
TABLE III-A. Second Quarter 2007, All FDIC-Insured Institutions 

SECOND QUARTER 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,615 26 4 1,645 4,731 804 119 378 851 57 

Commercial banks .............................................. 7,350 24 4 1,640 4,262 181 87 331 777 44 

Savings institutions ............................................. 1,265 2 0 5 469 623 32 47 74 13 

Total assets (in billions) ......................................... $12,261.0 $395.0 $2,544.3 $155.6 $4,789.4 $1,550.8 $117.7 $42.4 $113.1 $2,552.7 

Commercial banks .............................................. 10,411.0 393.3 2,544.3 155.2 4,323.2 327.1 48.7 34.3 97.3 2,487.6 

Savings institutions ............................................. 1,850.0 1.7 0.0 0.5 466.1 1,223.8 69.0 8.1 15.8 65.1 

Total deposits (in billions) ...................................... 8,035.3 109.7 1,512.2 126.8 3,457.3 970.0 83.0 30.2 93.3 1,652.8 

Commercial banks .............................................. 6,865.3 108.8 1,512.2 126.4 3,152.3 192.7 37.3 24.7 80.7 1,630.2 

Savings institutions ............................................. 1,169.9 0.9 0.0 0.4 305.0 777.3 45.7 5.6 12.6 22.6 

Net income (in millions) .......................................... 36,734 3,293 6,172 488 13,799 3,517 882 251 317 8,015 

Commercial banks .............................................. 31,915 3,264 6,172 487 12,607 861 305 166 292 7,759 

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

Performance Ratios (annualized,%) 

4,819 29 0 1 1,191 2,655 576 85 24 256 

Yield on earning assets .......................................... 6.85 12.83 6.24 7.21 7.11 6.59 8.71 5.54 6.53 6.20 

Cost of funding earning assets .............................. 3.51 4.54 3.69 3.20 3.40 3.89 2.81 2.51 2.83 3.28 

Net interest margin .............................................. 3.34 8.30 2.55 4.01 3.71 2.70 5.90 3.04 3.70 2.92 

Noninterest income to assets ................................. 2.25 10.37 2.49 0.69 1.63 1.23 2.93 10.05 1.26 2.50 

Noninterest expense to assets ............................... 2.99 8.09 2.87 2.70 2.91 2.18 4.24 9.13 3.18 2.81 

Loan and lease loss provision to assets ................ 0.37 3.42 0.32 0.15 0.26 0.24 1.10 0.07 0.11 0.24 

Net operating income to assets ............................. 1.22 3.34 1.02 1.28 1.20 0.83 1.98 2.34 1.10 1.29 

Pretax return on assets .......................................... 1.81 5.31 1.43 1.52 1.70 1.40 4.76 3.58 1.40 1.95 

Return on assets .................................................... 1.21 3.34 0.99 1.27 1.16 0.91 3.04 2.36 1.12 1.28 

Return on equity ..................................................... 11.54 13.97 12.96 11.54 10.82 8.92 22.06 11.26 10.07 12.05 

Net charge-offs to loans and leases ...................... 0.50 3.89 0.60 0.15 0.30 0.25 1.85 0.25 0.18 0.32 

Loan and lease loss provision to net charge-offs ... 123.87 121.05 122.90 151.80 124.87 136.64 75.09 118.13 108.37 141.48 

Efficiency ratio ........................................................ 56.52 44.39 60.63 61.19 57.94 57.84 49.93 71.05 67.83 55.05 

% of unprofitable institutions .................................. 9.56 11.54 0.00 3.77 11.01 12.81 7.56 24.60 3.76 1.75 

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

Structural Changes 

49.07 57.69 75.00 55.87 49.86 32.21 57.14 41.27 49.12 52.63 

New Charters ...................................................... 48 0 0 2 13 2 0 31 0 0 

Institutions absorbed by mergers ........................ 81 0 0 6 68 2 0 0 1 4 

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

PRIOR SECOND QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 

Return on assets (%) .................................. 2006 1.34 4.64 1.01 1.31 1.33 1.07 1.79 2.74 1.02 1.29 

................................... 2004 1.31 4.08 0.68 1.27 1.36 1.21 1.54 1.28 1.10 1.33 

................................... 2002 1.37 3.68 1.17 1.30 1.28 1.28 1.60 1.69 1.20 1.35 

Net charge-offs to loans & leases (%) ..........2006 0.35 3.43 0.59 0.17 0.17 0.13 0.92 0.56 0.18 0.19 

................................... 2004 0.58 5.08 0.99 0.18 0.32 0.11 1.15 0.41 0.29 0.31 

................................... 2002 0.94 5.78 1.48 0.30 0.73 0.17 1.00 0.67 0.31 0.70 

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

FDIC QUARTERLY 6 2007, VOLUME 1, NO. 2 
 

Quarterly Banking Profile 

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

SECOND QUARTER 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,615 3,583 4,370 539 123 1,071 1,215 1,807 2,000 1,750 772 

Commercial banks ............................................... 7,350 3,197 3,649 413 91 564 1,070 1,490 1,895 1,628 703 

Savings institutions .............................................. 1,265 386 721 126 32 507 145 317 105 122 69 

Total assets (in billions) .......................................... $12,261.0 $189.8 $1,294.4 $1,411.7 $9,365.1 $2,261.5 $3,004.4 $2,830.9 $910.0 $674.4 $2,579.8 

Commercial banks ............................................... 10,411.0 169.9 1,046.3 1,086.0 8,108.8 1,609.3 2,731.6 2,676.0 872.2 564.9 1,957.0 

Savings institutions .............................................. 1,850.0 19.9 248.2 325.7 1,256.3 652.1 272.8 154.9 37.8 109.5 622.8 

Total deposits (in billions) ....................................... 8,035.3 155.0 1,041.3 1,020.0 5,818.9 1,446.5 2,006.6 1,768.3 642.5 513.1 1,658.3 

Commercial banks ............................................... 6,865.3 139.8 853.0 788.3 5,084.2 1,011.1 1,830.3 1,657.5 616.2 444.3 1,306.0 

Savings institutions .............................................. 1,169.9 15.2 188.3 231.7 734.8 435.4 176.3 110.8 26.3 68.8 352.4 

Net income (in millions) .......................................... 36,734 413 3,701 3,880 28,740 5,811 9,447 7,386 3,416 1,932 8,742 

Commercial banks ............................................... 31,915 394 3,144 3,387 24,990 4,608 9,043 7,122 3,358 1,630 6,154 

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

Performance Ratios (annualized,%) 

4,819 19 557 493 3,751 1,203 404 263 58 302 2,589 

Yield on earning assets .......................................... 6.85 7.08 7.20 7.15 6.75 6.89 6.64 6.31 7.64 7.24 7.28 

Cost of funding earning assets ............................... 3.51 2.97 3.29 3.43 3.57 3.52 3.52 3.48 3.27 3.32 3.67 

Net interest margin .............................................. 3.34 4.12 3.90 3.72 3.18 3.37 3.12 2.82 4.37 3.92 3.60 

Noninterest income to assets ................................. 2.25 1.31 1.26 1.56 2.51 2.41 1.98 2.25 3.51 1.42 2.18 

Noninterest expense to assets ............................... 2.99 3.82 3.14 2.99 2.96 3.18 2.64 2.88 4.28 3.20 2.87 

Loan and lease loss provision to assets ................. 0.37 0.18 0.18 0.30 0.42 0.60 0.21 0.26 0.74 0.23 0.41 

Net operating income to assets .............................. 1.22 0.86 1.14 1.11 1.25 1.04 1.23 1.07 1.55 1.14 1.41 

Pretax return on assets .......................................... 1.81 1.12 1.55 1.66 1.88 1.57 1.91 1.55 2.27 1.53 2.08 

Return on assets .................................................... 1.21 0.88 1.15 1.11 1.24 1.04 1.27 1.05 1.54 1.16 1.37 

Return on equity ..................................................... 11.54 6.47 10.98 9.84 12.03 8.27 12.79 11.59 15.01 10.91 12.49 

Net charge-offs to loans and leases ....................... 0.50 0.14 0.18 0.33 0.59 0.84 0.26 0.37 0.63 0.23 0.64 

Loan and lease loss provision to net charge-offs ... 123.87 204.40 143.59 133.32 121.46 124.39 129.97 131.00 165.65 157.51 97.95 

Efficiency ratio ........................................................ 56.52 74.64 64.20 58.61 54.88 57.03 54.83 59.75 57.19 63.76 52.63 

% of unprofitable institutions .................................. 9.56 15.80 5.38 3.53 3.25 13.17 13.91 8.25 6.00 7.03 15.80 

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

Structural Changes 

49.07 47.25 50.57 49.35 47.15 40.06 42.88 46.21 53.10 55.89 52.07 

New Charters ...................................................... 48 47 1 0 0 5 10 3 2 14 14 

Institutions absorbed by mergers ........................ 81 26 48 7 0 21 12 16 10 12 10 

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

PRIOR SECOND QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%) ................................... 2006 1.34 1.02 1.26 1.34 1.36 1.28 1.32 1.09 1.63 1.29 1.78 

................................... 2004 1.31 0.98 1.17 1.46 1.32 1.08 1.40 1.36 1.53 1.31 1.59 

................................... 2002 1.37 1.06 1.20 1.38 1.42 1.25 1.35 1.35 1.60 1.50 1.57 

Net charge-offs to loans & leases (%) ........ 2006 0.35 0.15 0.15 0.20 0.42 0.56 0.15 0.23 0.37 0.22 0.54 

................................... 2004 0.58 0.23 0.23 0.45 0.68 0.85 0.32 0.41 0.76 0.39 0.61 

................................... 2002 0.94 0.31 0.35 0.73 1.16 1.40 0.72 0.73 1.21 0.39 0.83 

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

FDIC QUARTERLY 7 2007, VOLUME 1, NO. 2 
TABLE IV-A. First Half 2007, All FDIC-Insured Institutions 

FIRST HALF 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,615 26 4 1,645 4,731 804 119 378 851 57 

Commercial banks ............................................... 7,350 24 4 1,640 4,262 181 87 331 777 44 

Savings institutions .............................................. 1,265 2 0 5 469 623 32 47 74 13 

Total assets (in billions) .......................................... $12,261.0 $395.0 $2,544.3 $155.6 $4,789.4 $1,550.8 $117.7 $42.4 $113.1 $2,552.7 

Commercial banks ............................................... 10,411.0 393.3 2,544.3 155.2 4,323.2 327.1 48.7 34.3 97.3 2,487.6 

Savings institutions .............................................. 1,850.0 1.7 0.0 0.5 466.1 1,223.8 69.0 8.1 15.8 65.1 

Total deposits (in billions) ....................................... 8,035.3 109.7 1,512.2 126.8 3,457.3 970.0 83.0 30.2 93.3 1,652.8 

Commercial banks ............................................... 6,865.3 108.8 1,512.2 126.4 3,152.3 192.7 37.3 24.7 80.7 1,630.2 

Savings institutions .............................................. 1,169.9 0.9 0.0 0.4 305.0 777.3 45.7 5.6 12.6 22.6 

Net income (in millions) .......................................... 72,652 7,002 11,736 935 27,433 7,010 1,448 477 607 16,003 

Commercial banks ............................................... 63,338 6,955 11,736 933 25,224 1,598 586 317 563 15,425 

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

Performance Ratios (annualized,%) 

9,315 47 0 2 2,210 5,412 862 160 44 578 

Yield on earning assets .......................................... 6.81 12.67 6.15 7.10 7.06 6.59 8.64 5.48 6.47 6.17 

Cost of funding earning assets ............................... 3.48 4.46 3.64 3.15 3.36 3.87 2.99 2.49 2.80 3.25 

Net interest margin .............................................. 3.33 8.21 2.51 3.96 3.70 2.71 5.65 2.99 3.67 2.92 

Noninterest income to assets ................................. 2.17 10.00 2.52 0.67 1.55 1.05 2.80 9.45 1.23 2.42 

Noninterest expense to assets ............................... 2.96 7.90 2.92 2.68 2.86 2.09 4.27 8.70 3.17 2.81 

Loan and lease loss provision to assets ................. 0.34 2.94 0.35 0.15 0.23 0.20 1.37 0.07 0.10 0.19 

Net operating income to assets .............................. 1.20 3.51 0.96 1.23 1.20 0.79 1.53 2.21 1.06 1.28 

Pretax return on assets ........................................... 1.79 5.49 1.40 1.47 1.69 1.40 3.93 3.39 1.35 1.94 

Return on assets ..................................................... 1.21 3.51 0.96 1.23 1.16 0.91 2.54 2.25 1.08 1.29 

Return on equity ..................................................... 11.49 14.84 12.53 11.23 10.83 8.96 18.18 10.73 9.70 12.02 

Net charge-offs to loans and leases ....................... 0.47 3.84 0.58 0.15 0.26 0.24 1.85 0.23 0.16 0.31 

Loan and lease loss provision to net charge-offs ... 118.77 105.61 137.31 156.26 127.37 123.74 93.08 125.49 108.70 114.33 

Efficiency ratio ........................................................ 57.03 44.65 61.73 61.68 57.96 58.30 52.70 71.25 68.62 55.97 

% of unprofitable institutions ................................... 9.39 11.54 0.00 3.53 10.82 13.18 7.56 23.28 3.76 1.75 

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

Condition Ratios(%) 

49.66 46.15 50.00 54.59 52.25 27.86 47.90 43.12 49.47 50.88 

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

Loss Allowance to: 

87.44 77.95 85.23 91.72 88.69 91.24 92.10 88.01 91.95 85.77 

Loans and leases ................................................ 1.09 3.96 1.11 1.33 1.13 0.52 1.59 1.30 1.20 0.75 

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

Noncurrent assets plus 

121.29 220.95 131.52 128.24 133.97 51.94 201.32 153.06 135.61 93.16 

other real estate owned to assets ........................ 0.61 1.31 0.41 0.80 0.68 0.81 0.63 0.23 0.60 0.46 

Equity capital ratio .................................................. 10.43 23.88 7.64 11.15 10.68 10.22 13.72 21.02 11.10 10.40 

Core capital (leverage) ratio ................................... 8.18 15.06 5.89 10.49 8.46 8.22 12.73 19.09 10.97 8.31 

Tier 1 risk-based capital ratio .................................. 10.38 13.77 8.01 13.81 9.75 13.15 15.26 43.86 18.07 10.94 

Total risk-based capital ratio ................................... 12.87 16.87 11.55 14.89 11.98 14.84 16.27 44.90 19.22 13.42 

Net loans and leases to deposits ............................ 91.90 252.58 73.71 82.19 96.44 111.05 110.27 32.08 68.07 79.40 

Net loans to total assets ......................................... 60.22 70.14 43.81 66.96 69.61 69.46 77.73 22.89 56.13 51.41 

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

Structural Changes 

54.58 25.33 26.83 81.47 69.12 62.44 69.28 69.00 82.40 50.91 

New Charters ....................................................... 89 1 0 3 25 2 0 58 0 0 

Institutions absorbed by mergers ........................ 153 1 0 14 121 6 1 1 2 7 

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

PRIOR FIRST HALVES 

(The way it was...) 

1 0 0 0 0 1 0 0 0 0 

Number of institutions .................................. 2006 8,777 29 5 1,681 4,708 861 123 404 910 56 

................................... 2004 9,078 36 6 1,775 4,350 997 144 488 1,195 87 

................................... 2002 9,466 47 6 1,892 4,079 1,168 216 440 1,526 92 

Total assets (in billions) ............................... 2006 $11,526.2 $376.8 $2,097.8 $146.6 $4,552.3 $1,765.2 $97.5 $45.3 $117.1 $2,327.6 

................................... 2004 9,648.5 334.4 1,554.5 135.7 3,031.1 1,402.0 160.7 57.1 155.6 2,817.4 

................................... 2002 8,039.0 299.4 1,294.8 123.3 3,356.5 1,191.8 163.2 48.4 189.7 1,371.8 

Return on assets (%) ................................... 2006 1.34 4.58 1.08 1.29 1.33 1.06 2.00 0.88 1.02 1.27 

................................... 2004 1.33 3.97 0.89 1.26 1.35 1.22 1.58 1.36 1.10 1.29 

................................... 2002 1.34 3.44 0.99 1.28 1.30 1.29 1.52 1.31 1.19 1.33 

Net charge-offs to loans & leases (%) ......... 2006 0.34 3.14 0.55 0.14 0.17 0.12 0.94 0.74 0.15 0.19 

................................... 2004 0.60 5.03 1.13 0.15 0.32 0.12 1.29 0.50 0.27 0.29 

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

Noncurrent assets plus 

0.96 6.42 1.49 0.24 0.67 0.16 1.04 0.51 0.28 0.76 

OREO to assets (%) ................................. 2006 0.47 1.28 0.40 0.67 0.46 0.54 0.60 0.21 0.53 0.36 

................................... 2004 0.60 1.33 0.75 0.80 0.59 0.58 0.79 0.30 0.64 0.43 

................................... 2002 0.91 1.54 1.16 0.94 0.89 0.66 1.22 0.35 0.68 0.82 

Equity capital ratio (%) ................................. 2006 10.27 27.09 8.05 10.73 10.20 10.64 9.92 21.35 10.79 9.13 

................................... 2004 9.50 18.01 7.18 10.52 9.35 8.65 7.99 16.25 10.38 10.23 

................................... 2002 9.25 15.64 7.20 10.82 9.62 9.10 8.56 17.55 10.53 8.46 

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

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

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

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

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

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

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

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

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

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

activity with no identified asset concentrations. 

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

activity with no identified asset concentrations. 

FDIC QUARTERLY 8 2007, VOLUME 1, NO. 2 
 

Quarterly Banking Profile 

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

FIRST HALF 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than $100 

Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,615 3,583 4,370 539 123 1,071 1,215 1,807 2,000 1,750 772 

Commercial banks ............................................... 7,350 3,197 3,649 413 91 564 1,070 1,490 1,895 1,628 703 

Savings institutions .............................................. 1,265 386 721 126 32 507 145 317 105 122 69 

Total assets (in billions) .......................................... $12,261.0 $189.8 $1,294.4 $1,411.7 $9,365.1 $2,261.5 $3,004.4 $2,830.9 $910.0 $674.4 $2,579.8 

Commercial banks ............................................... 10,411.0 169.9 1,046.3 1,086.0 8,108.8 1,609.3 2,731.6 2,676.0 872.2 564.9 1,957.0 

Savings institutions .............................................. 1,850.0 19.9 248.2 325.7 1,256.3 652.1 272.8 154.9 37.8 109.5 622.8 

Total deposits (in billions) ....................................... 8,035.3 155.0 1,041.3 1,020.0 5,818.9 1,446.5 2,006.6 1,768.3 642.5 513.1 1,658.3 

Commercial banks ............................................... 6,865.3 139.8 853.0 788.3 5,084.2 1,011.1 1,830.3 1,657.5 616.2 444.3 1,306.0 

Savings institutions .............................................. 1,169.9 15.2 188.3 231.7 734.8 435.4 176.3 110.8 26.3 68.8 352.4 

Net income (in millions) .......................................... 72,652 809 7,085 7,853 56,905 11,875 18,519 14,791 7,184 3,748 16,535 

Commercial banks ............................................... 63,338 774 6,143 6,752 49,669 9,664 17,531 14,289 7,055 3,199 11,602 

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

Performance Ratios (annualized,%) 

9,315 35 943 1,101 7,237 2,211 989 502 130 550 4,933 

Yield on earning assets .......................................... 6.81 6.98 7.13 7.10 6.71 6.85 6.61 6.27 7.58 7.16 7.21 

Cost of funding earning assets ............................... 3.48 2.91 3.25 3.39 3.54 3.48 3.48 3.45 3.21 3.28 3.66 

Net interest margin .............................................. 3.33 4.07 3.88 3.71 3.17 3.37 3.13 2.82 4.36 3.88 3.56 

Noninterest income to assets ................................. 2.17 1.29 1.20 1.52 2.42 2.32 1.90 2.20 3.46 1.39 2.07 

Noninterest expense to assets ............................... 2.96 3.77 3.12 2.93 2.93 3.13 2.63 2.84 4.24 3.17 2.84 

Loan and lease loss provision to assets ................. 0.34 0.17 0.17 0.28 0.38 0.52 0.16 0.24 0.63 0.20 0.45 

Net operating income to assets .............................. 1.20 0.86 1.10 1.13 1.23 1.06 1.23 1.07 1.64 1.13 1.30 

Pretax return on assets .......................................... 1.79 1.11 1.50 1.69 1.86 1.60 1.88 1.57 2.37 1.50 1.98 

Return on assets .................................................... 1.21 0.86 1.11 1.13 1.24 1.07 1.26 1.06 1.64 1.13 1.31 

Return on equity ..................................................... 11.49 6.37 10.62 10.09 11.98 8.50 12.58 11.67 15.76 10.74 11.95 

Net charge-offs to loans and leases ....................... 0.47 0.14 0.15 0.29 0.56 0.82 0.24 0.34 0.63 0.21 0.60 

Loan and lease loss provision to net charge-offs ... 118.77 188.79 157.13 140.20 114.67 110.62 109.60 127.20 140.03 149.47 115.86 

Efficiency ratio ........................................................ 57.03 74.71 64.99 58.40 55.46 57.32 55.75 59.81 57.22 64.17 53.55 

% of unprofitable institutions .................................. 9.39 15.91 4.97 3.53 2.44 14.10 13.33 8.30 5.70 6.34 15.67 

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

Condition Ratios (%) 

49.66 48.06 51.30 47.87 45.53 37.82 47.82 44.88 51.60 58.74 54.53 

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

Loss Allowance to: 

87.44 92.01 91.90 90.79 86.22 87.08 86.98 87.09 87.03 89.64 88.24 

Loans and leases ................................................ 1.09 1.30 1.15 1.19 1.05 1.43 0.87 1.16 1.21 1.09 0.95 

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

Noncurrent assets plus 

121.29 125.22 130.32 138.77 116.75 146.56 145.77 116.78 87.68 131.86 104.13 

other real estate owned to assets ....................... 0.61 0.80 0.75 0.67 0.58 0.58 0.42 0.63 1.11 0.65 0.66 

Equity capital ratio .................................................. 10.43 13.43 10.48 11.28 10.24 12.47 9.84 9.01 9.99 10.57 11.02 

Core capital (leverage) ratio ................................... 8.18 13.41 10.07 9.57 7.59 9.10 7.39 7.30 8.34 8.80 9.04 

Tier 1 risk-based capital ratio ................................. 10.38 19.58 13.45 12.22 9.53 12.39 9.22 8.84 9.66 11.80 11.88 

Total risk-based capital ratio .................................. 12.87 20.63 14.57 13.51 12.40 14.39 11.63 11.67 12.27 13.16 14.68 

Net loans and leases to deposits ........................... 91.90 76.51 86.18 94.78 92.82 87.65 92.39 87.28 98.46 83.86 99.87 

Net loans to total assets ......................................... 60.22 62.46 69.33 68.49 57.68 56.06 61.70 54.52 69.52 63.80 64.20 

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

Structural Changes 

54.58 81.63 80.33 71.66 47.89 55.41 58.58 51.31 65.26 75.26 43.59 

New Charters ...................................................... 89 84 4 1 0 12 22 7 4 21 23 

Institutions absorbed by mergers ........................ 153 56 83 14 0 32 20 29 23 29 20 

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

PRIOR FIRST HALVES 

(The way it was...) 

1 1 0 0 0 1 0 0 0 0 0 

Number of institutions ................................... 2006 8,777 3,805 4,332 518 122 1,103 1,234 1,864 2,043 1,777 756 

................................... 2004 9,078 4,277 4,217 468 116 1,148 1,228 1,990 2,120 1,846 746 

................................... 2002 9,466 4,918 4,002 446 100 1,235 1,245 2,086 2,192 1,923 785 

Total assets (in billions) ................................ 2006 $11,526.2 $198.6 $1,269.5 $1,422.7 $8,635.4 $2,952.0 $2,861.6 $2,679.3 $825.3 $631.4 $1,576.6 

................................... 2004 9,648.5 221.4 1,172.2 1,293.6 6,961.4 3,326.1 2,041.3 1,701.8 760.3 578.1 1,240.8 

................................... 2002 8,039.0 247.5 1,083.4 1,292.9 5,415.2 2,762.6 1,614.6 1,514.1 420.5 555.5 1,171.6 

Return on assets (%) .................................... 2006 1.34 0.99 1.18 1.34 1.37 1.29 1.32 1.09 1.62 1.30 1.75 

................................... 2004 1.33 0.99 1.17 1.47 1.34 1.15 1.37 1.37 1.52 1.33 1.58 

................................... 2002 1.34 1.02 1.16 1.39 1.38 1.20 1.35 1.34 1.57 1.43 1.53 

Net charge-offs to loans & leases (%) .......... 2006 0.34 0.13 0.13 0.19 0.40 0.51 0.15 0.23 0.36 0.19 0.53 

................................... 2004 0.60 0.20 0.23 0.41 0.72 0.86 0.34 0.42 0.82 0.36 0.63 

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

Noncurrent assets plus 

0.96 0.26 0.31 0.70 1.20 1.47 0.68 0.75 1.21 0.39 0.81 

OREO to assets (%) ................................... 2006 0.47 0.70 0.52 0.45 0.47 0.41 0.29 0.51 0.82 0.64 0.62 

................................... 2004 0.60 0.83 0.62 0.55 0.60 0.61 0.42 0.73 0.63 0.67 0.65 

................................... 2002 0.91 0.87 0.72 0.71 1.00 1.02 0.79 1.02 0.82 0.83 0.74 

Equity capital ratio (%) .................................. 2006 10.27 12.51 10.22 10.90 10.12 11.03 9.49 8.92 10.62 10.14 12.41 

................................... 2004 9.50 11.49 9.90 10.49 9.19 9.65 8.32 8.56 10.28 9.49 11.91 

................................... 2002 9.25 11.28 10.03 9.96 8.82 8.84 9.36 8.82 10.17 9.77 10.01 

* Regions: 

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

Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

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

FDIC QUARTERLY 9 2007, VOLUME 1, NO. 2 
TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

June 30, 2007 

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ....................................... 1.02 3.36 1.47 1.22 0.88 1.20 0.64 1.05 1.40 0.88 

Construction and development ..................................... 1.04 0.00 1.24 2.21 1.01 1.61 0.67 0.94 1.14 0.78 

Nonfarm nonresidential ................................................. 0.52 0.00 0.28 1.15 0.55 0.52 0.92 0.59 1.13 0.25 

Multifamily residential real estate .................................. 0.44 0.00 0.31 0.80 0.53 0.23 0.52 2.41 0.45 0.42 

Home equity loans ........................................................ 0.72 2.39 0.68 0.49 0.61 0.85 0.47 0.64 0.82 0.79 

Other 1-4 family residential ........................................... 1.37 7.40 2.00 1.66 1.27 1.34 0.71 1.26 1.65 1.15 

Commercial and industrial loans ...................................... 0.58 2.53 0.49 1.55 0.59 0.62 0.96 1.23 1.44 0.34 

Loans to individuals ......................................................... 1.76 2.14 1.99 2.07 1.46 1.11 1.66 2.21 2.02 1.62 

Credit card loans ........................................................... 2.11 2.16 2.29 0.95 1.88 1.64 2.09 3.90 0.93 1.96 

Other loans to individuals .............................................. 1.55 2.00 1.86 2.14 1.39 0.86 1.50 2.03 2.07 1.55 

All other loans and leases (including farm) ...................... 0.45 0.11 0.51 0.83 0.57 0.55 0.10 0.65 0.72 0.20 

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

Percent of Loans Noncurrent** 

1.00 2.05 1.17 1.23 0.85 1.17 1.29 1.22 1.44 0.79 

All real estate loans .......................................................... 1.01 2.40 1.16 1.12 0.95 1.03 0.33 0.87 0.90 1.08 

Construction and development ..................................... 1.29 0.00 0.99 2.19 1.25 1.82 1.32 2.37 1.71 1.29 

Nonfarm nonresidential ................................................. 0.63 0.00 0.53 1.38 0.64 0.69 0.46 0.97 1.10 0.48 

Multifamily residential real estate .................................. 0.66 0.00 0.43 0.68 0.86 0.30 0.07 0.24 1.40 0.41 

Home equity loans ........................................................ 0.50 1.43 0.42 0.36 0.41 0.71 0.03 0.69 0.41 0.52 

Other 1-4 family residential ........................................... 1.26 6.39 1.46 0.91 1.24 1.11 0.45 0.65 0.76 1.52 

Commercial and industrial loans ...................................... 0.62 2.01 0.36 1.46 0.68 0.66 0.83 1.54 1.19 0.49 

Loans to individuals ......................................................... 1.12 1.91 1.43 0.69 0.64 0.56 1.01 0.59 0.63 0.60 

Credit card loans ........................................................... 1.85 1.94 1.96 0.83 1.44 1.33 1.92 1.07 0.63 1.68 

Other loans to individuals .............................................. 0.68 1.68 1.19 0.68 0.52 0.20 0.66 0.54 0.63 0.38 

All other loans and leases (including farm) ...................... 0.24 0.02 0.10 0.70 0.32 2.09 0.03 0.23 0.69 0.16 

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

Percent of Loans Charged-off (net, YTD) 

0.90 1.79 0.84 1.04 0.84 1.00 0.79 0.85 0.88 0.81 

All real estate loans .......................................................... 0.13 1.77 0.25 0.04 0.14 0.11 0.15 0.05 0.04 0.09 

Construction and development ..................................... 0.13 0.00 -0.02 0.12 0.14 0.14 0.38 0.12 0.08 0.05 

Nonfarm nonresidential ................................................. 0.10 0.00 0.03 0.06 0.12 0.03 0.03 0.04 0.07 0.02 

Multifamily residential real estate .................................. 0.11 0.00 0.32 -0.01 0.13 0.01 0.00 0.00 0.05 0.06 

Home equity loans ........................................................ 0.27 1.89 0.30 0.10 0.24 0.36 0.10 0.01 0.03 0.25 

Other 1-4 family residential ........................................... 0.12 1.38 0.25 0.07 0.13 0.09 0.19 0.05 0.04 0.05 

Commercial and industrial loans ...................................... 0.39 4.45 0.08 0.53 0.35 0.38 3.03 0.33 0.37 0.33 

Loans to individuals ......................................................... 2.38 4.12 2.61 0.58 1.15 2.28 2.48 0.81 0.60 1.49 

Credit card loans ........................................................... 3.99 4.12 2.98 2.85 3.68 5.77 4.74 4.37 3.18 3.80 

Other loans to individuals .............................................. 1.36 4.09 2.45 0.44 0.79 0.53 1.51 0.40 0.46 0.99 

All other loans and leases (including farm) ...................... 0.14 0.00 0.00 0.00 0.28 0.52 0.35 0.46 0.22 0.17 

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

Loans Outstanding (in billions) 

0.47 3.84 0.58 0.15 0.26 0.24 1.85 0.23 0.16 0.31 

All real estate loans .......................................................... $4,618.5 $1.7 $467.6 $58.7 $2,272.4 $987.5 $26.2 $6.3 $45.3 $752.7 

Construction and development ..................................... 600.1 0.0 8.2 5.7 501.7 27.0 0.6 0.5 3.0 53.3 

Nonfarm nonresidential ................................................. 942.8 0.0 29.1 16.1 717.8 46.7 2.1 1.7 10.8 118.6 

Multifamily residential real estate .................................. 190.0 0.0 11.3 1.0 114.2 47.3 0.2 0.1 0.8 14.9 

Home equity loans ........................................................ 576.7 1.4 90.8 1.1 200.8 109.5 9.0 0.3 1.6 162.2 

Other 1-4 family residential ........................................... 2,188.1 0.3 279.8 15.4 699.7 756.5 14.1 3.5 26.1 392.6 

Commercial and industrial loans ...................................... 1,300.6 26.9 268.1 14.9 680.9 32.5 9.2 1.2 6.6 260.3 

Loans to individuals ......................................................... 980.8 239.7 203.1 6.6 245.7 56.4 56.7 1.5 8.0 163.1 

Credit card loans ........................................................... 372.9 216.1 62.4 0.4 31.5 18.0 15.8 0.1 0.3 28.2 

Other loans to individuals .............................................. 608.0 23.7 140.7 6.2 214.2 38.4 40.9 1.4 7.7 134.8 

All other loans and leases (including farm) ...................... 568.6 20.1 189.7 25.3 174.4 6.5 1.0 0.8 4.4 146.3 

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

Memo: Other Real Estate Owned (in millions) 

7,468.4 288.5 1,128.4 105.6 3,373.4 1,082.9 93.1 9.8 64.3 1,322.4 

All other real estate owned .............................................. 7,990.0 0.9 821.9 149.9 4,114.3 1,758.3 9.2 14.2 115.1 1,006.4 

Construction and development ..................................... 960.7 0.0 0.0 22.6 798.0 95.1 0.8 0.7 16.0 27.4 

Nonfarm nonresidential ................................................. 1,308.9 0.1 6.0 56.7 1,062.1 62.7 4.7 8.1 45.6 63.0 

Multifamily residential real estate .................................. 234.6 0.0 0.0 4.6 197.5 9.9 0.0 0.0 6.8 15.7 

1-4 family residential ..................................................... 4,238.4 0.8 295.9 38.5 1,799.3 1,567.9 12.3 5.0 43.4 475.3 

Farmland ....................................................................... 72.9 0.0 0.0 27.3 34.8 5.4 0.0 0.6 3.2 1.6 

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

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

FDIC QUARTERLY 10 2007, VOLUME 1, NO. 2 
 

Quarterly Banking Profile 

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

June 30, 2007 

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ............................. 1.02 1.41 0.99 0.72 1.09 0.75 0.91 1.14 0.94 1.04 1.27 

Construction and development ........................... 1.04 1.29 1.19 0.92 1.01 0.84 0.83 1.46 1.23 0.76 1.16 

Nonfarm nonresidential ....................................... 0.52 1.13 0.77 0.50 0.37 0.57 0.34 0.72 0.66 0.66 0.32 

Multifamily residential real estate ........................ 0.44 0.80 0.70 0.62 0.31 0.25 0.40 1.04 0.79 0.75 0.26 

Home equity loans .............................................. 0.72 0.87 0.74 0.59 0.73 0.63 0.80 0.62 0.83 0.55 0.74 

Other 1-4 family residential ................................. 1.37 1.84 1.18 0.84 1.46 0.87 1.23 1.50 1.11 1.74 1.79 

Commercial and industrial loans ............................ 0.58 1.58 1.04 0.70 0.49 0.78 0.36 0.72 0.84 0.83 0.35 

Loans to individuals ............................................... 1.76 2.33 1.62 1.73 1.77 1.92 1.36 1.50 2.44 1.52 1.85 

Credit card loans ................................................. 2.11 2.02 2.18 1.88 2.13 2.07 2.02 1.82 2.56 1.09 2.22 

Other loans to individuals .................................... 1.55 2.33 1.57 1.65 1.52 1.67 1.27 1.39 2.33 1.61 1.61 

All other loans and leases (including farm) ............ 0.45 0.70 0.61 0.70 0.42 0.61 0.22 0.72 0.42 0.64 0.24 

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

Percent of Loans Noncurrent** 

1.00 1.43 1.02 0.79 1.02 0.98 0.81 1.05 1.09 1.03 1.13 

All real estate loans ................................................ 1.01 1.03 0.90 0.90 1.06 0.83 0.70 1.31 1.78 0.91 1.01 

Construction and development ........................... 1.29 1.32 1.50 1.29 1.18 1.84 1.07 1.65 1.60 0.82 1.13 

Nonfarm nonresidential ....................................... 0.63 1.10 0.75 0.68 0.53 0.80 0.39 0.94 0.69 0.62 0.40 

Multifamily residential real estate ........................ 0.66 0.88 0.75 1.14 0.47 0.31 0.78 1.89 0.56 1.29 0.30 

Home equity loans .............................................. 0.50 0.52 0.41 0.45 0.51 0.41 0.53 0.49 0.52 0.23 0.53 

Other 1-4 family residential ................................. 1.26 1.01 0.77 0.91 1.38 0.80 0.77 1.73 3.41 1.35 1.28 

Commercial and industrial loans ............................ 0.62 1.37 1.05 0.80 0.52 1.10 0.38 0.61 0.80 0.71 0.46 

Loans to individuals ............................................... 1.12 0.84 0.54 0.73 1.20 1.56 0.61 0.74 1.22 0.49 1.36 

Credit card loans ................................................. 1.85 0.75 1.28 1.39 1.89 2.07 1.57 1.50 1.72 0.94 1.80 

Other loans to individuals .................................... 0.68 0.84 0.49 0.41 0.73 0.68 0.49 0.49 0.79 0.39 1.09 

All other loans and leases (including farm) ............ 0.24 0.75 0.57 0.38 0.19 0.14 0.13 0.24 0.34 0.66 0.29 

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

Percent of Loans Charged-off (net, YTD) 

0.90 1.04 0.88 0.86 0.90 0.97 0.60 0.99 1.38 0.82 0.92 

All real estate loans ................................................ 0.13 0.06 0.07 0.10 0.16 0.06 0.10 0.21 0.14 0.07 0.17 

Construction and development ........................... 0.13 0.13 0.12 0.14 0.12 0.12 0.14 0.19 0.12 0.11 0.02 

Nonfarm nonresidential ....................................... 0.10 0.06 0.04 0.04 0.16 0.04 0.05 0.12 0.01 0.04 0.33 

Multifamily residential real estate ........................ 0.11 0.09 0.07 0.32 0.05 0.00 0.32 0.25 0.02 0.08 0.06 

Home equity loans .............................................. 0.27 0.07 0.08 0.19 0.30 0.13 0.23 0.29 0.40 0.20 0.32 

Other 1-4 family residential ................................. 0.12 0.07 0.06 0.06 0.13 0.05 0.06 0.24 0.12 0.06 0.15 

Commercial and industrial loans ............................ 0.39 0.40 0.35 0.44 0.39 0.72 0.28 0.25 0.81 0.24 0.35 

Loans to individuals ............................................... 2.38 0.45 0.87 1.87 2.53 3.31 1.20 1.34 2.65 1.08 3.06 

Credit card loans ................................................. 3.99 3.15 4.98 3.32 4.03 4.29 4.05 3.28 3.87 3.07 3.89 

Other loans to individuals .................................... 1.36 0.40 0.53 1.23 1.47 1.58 0.75 0.69 1.53 0.66 2.55 

All other loans and leases (including farm) ............ 0.14 0.07 0.18 0.31 0.13 0.13 0.23 0.14 0.08 0.34 0.05 

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

Loans Outstanding (in billions) 

0.47 0.14 0.15 0.29 0.56 0.82 0.24 0.34 0.63 0.21 0.60 

All real estate loans ................................................ $4,618.5 $80.1 $703.2 $719.4 $3,115.9 $759.2 $1,263.6 $896.5 $368.1 $300.9 $1,030.2 

Construction and development ........................... 600.1 11.1 143.1 159.9 286.0 62.4 194.7 123.3 48.6 77.6 93.6 

Nonfarm nonresidential ....................................... 942.8 22.3 237.4 227.6 455.6 175.4 247.0 204.6 84.3 87.9 143.6 

Multifamily residential real estate ........................ 190.0 1.8 27.3 40.6 120.2 48.6 23.0 30.3 8.6 6.4 73.1 

Home equity loans .............................................. 576.7 2.6 33.5 43.2 497.4 53.1 176.1 154.2 72.8 19.7 100.7 

Other 1-4 family residential ................................. 2,188.1 32.6 235.7 235.7 1,684.0 415.7 603.0 366.9 136.3 99.6 566.6 

Commercial and industrial loans ............................ 1,300.6 17.4 120.0 149.8 1,013.3 184.0 302.6 340.3 111.9 75.4 286.4 

Loans to individuals ............................................... 980.8 9.5 49.6 76.9 844.7 260.8 171.2 172.6 92.6 41.1 242.5 

Credit card loans ................................................. 372.9 0.2 3.7 25.1 343.9 165.5 20.0 43.0 42.8 7.4 94.3 

Other loans to individuals .................................... 608.0 9.4 45.9 51.9 500.9 95.3 151.3 129.6 49.8 33.8 148.2 

All other loans and leases (including farm) ............ 568.6 13.2 35.6 32.9 486.8 82.5 133.2 152.3 67.8 17.8 114.9 

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

Memo: Other Real Estate Owned (in millions) 

7,468.4 120.2 908.4 979.1 5,460.7 1,286.6 1,870.6 1,561.7 640.4 435.2 1,674.0 

All other real estate owned .................................... 7,990.0 281.4 1,698.6 1,017.8 4,992.2 605.7 1,517.6 2,212.2 1,288.2 773.3 1,593.0 

Construction and development ........................... 960.7 31.7 469.9 287.7 171.3 80.7 313.7 157.6 162.6 183.3 62.7 

Nonfarm nonresidential ....................................... 1,308.9 101.5 566.5 238.8 402.2 131.4 285.9 343.4 191.4 241.7 115.1 

Multifamily residential real estate ........................ 234.6 8.5 59.1 69.6 97.5 6.7 85.4 87.2 17.0 25.0 13.2 

1-4 family residential ........................................... 4,238.4 126.2 556.1 403.6 3,152.5 368.2 786.1 1,085.7 479.6 269.4 1,249.5 

Farmland ............................................................. 72.9 13.6 43.0 13.9 2.4 5.6 12.4 5.0 12.9 34.6 2.2 

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

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

FDIC QUARTERLY 11 2007, VOLUME 1, NO. 2 
TABLE VI-A. Derivatives, All FDIC-Insured Commercial Banks and State-Chartered Savings Banks 

(dollar figures in millions; 

notional amounts unless otherwise indicated) 

2nd Quarter 

2007 

1st Quarter 

2007 

4th Quarter 

2006 

3rd Quarter 

2006 

2nd Quarter 

2006 

%Change 

06:2-07:2 

Asset Size Distribution 

Less than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater than 

$10 Billion 

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives ........................... 1,055 1,052 1,014 1,014 992 6.4 72 631 266 86 

Total assets of institutions reporting derivatives ...................... $9,144,539 $8,866,417 $8,834,552 $8,411,745 $8,276,560 10.5 $5,003 $274,996 $823,685 $8,040,855 

Total deposits of institutions reporting derivatives ................... 5,898,181 5,746,224 5,751,222 5,431,440 5,403,746 9.1 3,995 218,896 600,061 5,075,230 

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

Derivative Contracts by Underlying Risk Exposure 

153,825,897 146,085,265 132,182,077 127,106,628 120,205,407 28.0 118 18,127 104,342 153,703,309 

Interest rate .................................................................... 123,340,731 118,593,265 107,434,319 103,198,838 98,738,848 24.9 104 17,813 86,201 123,236,613 

Foreign exchange* ........................................................... 15,117,714 14,167,853 12,564,207 12,226,835 12,256,709 23.3 0 53 6,142 15,111,519 

Equity ............................................................................ 2,638,709 2,317,769 2,270,942 2,218,658 1,902,399 38.7 14 223 11,535 2,626,937 

Commodity & other (excluding credit derivatives) ................... 951,725 840,613 893,310 1,558,264 738,026 29.0 0 3 180 951,542 

Credit ............................................................................. 11,777,018 10,165,765 9,019,299 7,904,034 6,569,425 79.3 0 35 284 11,776,699 

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

Derivative Contracts by Transaction Type 

153,825,897 146,085,265 132,182,077 127,106,628 120,205,407 28.0 118 18,127 104,342 153,703,309 

Swaps ............................................................................ 95,320,189 88,007,079 81,339,522 77,555,665 74,448,925 28.0 21 8,404 64,482 95,247,282 

Futures & forwards ........................................................... 16,199,457 15,307,468 14,882,008 14,482,742 13,788,776 17.5 32 2,310 15,940 16,181,174 

Purchased options ............................................................ 14,377,520 15,737,380 12,944,893 13,301,484 12,367,870 16.2 17 4,792 17,473 14,355,239 

Written options ................................................................. 14,842,737 15,588,256 13,332,487 12,945,812 12,081,029 22.9 48 2,563 5,600 14,834,526 

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

Fair Value of Derivative Contracts 

140,739,903 134,640,182 122,498,910 118,285,703 112,686,600 24.9 118 18,069 103,495 140,618,221 

Interest rate contracts ....................................................... 20,077 24,447 23,299 22,720 21,194 -5.3 0 -17 -3 20,097 

Foreign exchange contracts ............................................... 5,661 74,088 5,324 4,144 4,641 22.0 0 0 -26 5,687 

Equity contracts ............................................................... -24,713 -18,845 -17,845 -13,526 -9,364 163.9 1 13 42 -24,769 

Commodity & other (excluding credit derivatives) ..................... 1,946 22,530 2,658 2,562 2,806 -30.6 0 0 0 1,946 

Credit derivatives as guarantor ............................................ -22,960 9,032 31,583 14,671 7,311 NM 0 0 -1 -22,959 

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

Derivative Contracts by Maturity** 

23,820 -9,677 -32,745 -14,819 -8,992 NM 0 0 0 23,820 

Interest rate contracts ....................................... < 1 year 39,403,738 33,255,949 29,551,704 26,615,376 22,679,708 73.7 27 3,220 23,266 39,377,224

 ............................ 1-5 years 33,846,038 33,802,189 31,385,640 30,872,442 31,161,579 8.6 13 8,545 25,804 33,811,677

 ............................ > 5 years 24,588,177 24,684,533 23,273,618 22,518,236 22,835,007 7.7 18 3,070 29,952 24,555,138 

Foreign exchange contracts ............................... < 1 year 8,948,450 8,372,488 7,690,210 6,687,566 7,473,995 19.7 0 23 4,966 8,943,461

 ............................ 1-5 years 1,667,700 1,571,241 1,415,846 1,573,062 1,240,609 34.4 0 4 18 1,667,678

 ............................ > 5 years 676,071 624,415 592,897 767,427 518,618 30.4 0 3 10 676,058 

Equity contracts ............................................... < 1 year 442,652 397,235 341,346 333,262 334,715 32.2 1 20 162 442,469

 ............................ 1-5 years 283,520 236,557 220,856 296,151 219,638 29.1 6 94 407 283,013

 ............................ > 5 years 62,916 74,332 44,858 53,988 44,457 41.5 0 0 32 62,883 

Commodity & other contracts .............................. < 1 year 280,133 271,647 235,107 496,634 230,213 21.7 0 0 134 279,999

 ............................ 1-5 years 261,410 200,542 272,314 274,378 177,869 47.0 0 3 35 261,372

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

Risk-Based Capital: Credit Equivalent Amount 

27,273 23,955 21,581 14,486 10,426 161.6 0 0 0 27,273 

Total current exposure to tier 1 capital (%) ............................ 30.8 28.3 29.2 28.6 33.6 0.4 0.2 1.2 36.0 

Total potential future exposure to tier 1 capital (%) .................. 113.4 106.9 97.7 99.0 90.2 0.2 0.3 1.0 133.2 

Total exposure (credit equivalent amount) to tier 1 capital (%) ... 144.2 135.2 126.9 127.6 123.8 0.5 0.5 2.2 169.2 

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

HELD FOR TRADING 

6.3 -2.9 -25.1 -19.3 -3.3 NM 0.0 1.6 0.3 4.3 

Number of institutions reporting derivatives ........................... 165 152 147 147 149 10.7 6 45 55 59 

Total assets of institutions reporting derivatives ..................... 7,782,327 7,383,462 7,223,466 6,927,469 6,808,697 14.3 373 20,066 244,465 7,517,422 

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

Derivative Contracts by Underlying Risk Exposure 

4,922,584 4,766,993 4,712,044 4,435,577 4,399,031 11.9 282 16,246 170,075 4,735,981 

Interest rate .................................................................... 120,829,579 115,845,739 104,691,811 100,299,894 96,221,190 25.6 10 222 40,985 120,788,363 

Foreign exchange ............................................................ 13,684,212 12,769,131 11,788,411 11,207,259 11,206,773 22.1 0 10 5,153 13,679,049 

Equity ............................................................................ 2,622,872 2,313,326 2,266,778 2,214,881 1,898,493 38.2 0 6 410 2,622,457 

Commodity & other .......................................................... 951,236 840,345 893,087 1,558,095 737,910 28.9 0 0 124 951,112 

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

Trading Revenues: Cash & Derivative Instruments 

138,087,899 131,768,541 119,640,087 115,280,129 110,064,365 25.5 10 238 46,671 138,040,980 

Interest rate .................................................................... 2,980 2,405 1,146 546 1,665 79.0 0 0 19 2,961 

Foreign exchange ............................................................ 1,264 1,831 1,613 1,355 2,672 -52.7 0 0 8 1,256 

Equity ............................................................................ 1,021 1,732 1,214 1,827 100 921.0 0 0 1 1,020 

Commodity & other (including credit derivatives) ..................... 877 1,053 -111 789 272 -91.2 0 0 0 24 

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

Share of Revenue 

6,142 7,021 3,861 4,517 4,710 12.3 0 0 27 5,262 

Trading revenues to gross revenues (%) .............................. 3.4 4.3 2.9 3.4 3.6 0.0 0.0 0.5 3.5 

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

HELD FOR PURPOSES OTHER THAN TRADING 

22.3 28.9 19.6 20.7 21.6 0.0 0.4 3.8 22.9 

Number of institutions reporting derivatives ............................ 969 969 935 934 920 5.3 64 586 236 83 

Total assets of institutions reporting derivatives ...................... 8,962,437 8,636,687 8,604,934 8,227,057 8,123,922 10.3 4,472 253,102 732,932 7,971,932 

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

Derivative Contracts by Underlying Risk Exposure 

5,772,676 5,582,122 5,589,925 5,305,574 5,299,416 8.9 3,598 201,019 537,402 5,030,657 

Interest rate .................................................................... 2,511,152 2,747,526 2,742,508 2,898,943 2,517,658 -0.3 95 17,591 45,216 2,448,251 

Foreign exchange ............................................................ 124,526 119,405 111,928 102,685 100,555 23.8 0 19 426 124,081 

Equity ............................................................................ 15,837 4,443 4,164 3,777 3,906 305.5 14 218 11,125 4,480 

Commodity & other .......................................................... 489 268 223 169 116 321.6 0 3 56 430 

Total notional amount ....................................................... 2,652,004 2,871,642 2,858,823 3,005,575 2,622,234 1.1 108 17,831 56,824 2,577,241 

All line items are reported on a quarterly basis.
 

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

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

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

FDIC QUARTERLY 12 2007, VOLUME 1, NO. 2 
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Quarterly Banking Profile 

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

(dollar figures in millions) 

2nd 

Quarter 

2007 

1st Quarter 

2007 

4th 

Quarter 

2006 

3rd 

Quarter 

2006 

2nd 

Quarter 

2006 

%Change 

06:2-07:2 

Asset Size Distribution 

Less than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than 

$10 Billion 

Assets Securitized and Sold with Servicing Retained or with Recourse 

or Other Seller-Provided Credit Enhancements 

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

Outstanding Principal Balance by Asset Type 

126 125 122 119 120 5.0 16 47 20 43 

1-4 family residential loans .................................................................................... $1,115,865 $1,079,912 $739,024 $453,900 $417,800 167.1 $97 $329 $682 $1,114,758 

Home equity loans ................................................................................................ 10,640 9,339 8,905 9,257 9,632 10.5 0 0 431 10,209 

Credit card receivables ........................................................................................ 372,481 367,796 362,467 422,983 403,434 -7.7 0 6,637 6,675 359,170 

Auto loans ......................................................................................................... 12,547 14,132 16,263 16,781 16,665 -24.7 0 0 361 12,185 

Other consumer loans ........................................................................................ 27,396 27,737 28,673 25,753 24,414 12.2 0 7 0 27,389 

Commercial and industrial loans .............................................................................. 13,193 12,039 10,543 8,404 10,582 24.7 0 30 4,859 8,303 

All other loans, leases, and other assets* .................................................................. 162,434 150,404 144,939 136,330 121,506 33.7 2 86 1,078 161,268 

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

Maximum Credit Exposure by Asset Type 

1,714,556 1,661,359 1,310,814 1,073,407 1,004,034 70.8 99 7,089 14,087 1,693,282 

1-4 family residential loans .................................................................................... 6,511 6,047 6,627 4,619 4,336 50.2 13 3 17 6,478 

Home equity loans ................................................................................................ 2,420 2,368 2,332 2,358 2,358 2.6 0 0 20 2,400 

Credit card receivables ........................................................................................ 18,711 17,685 19,182 25,084 24,495 -23.6 0 488 175 18,048 

Auto loans ...................................................................................................... 555 628 724 813 806 -31.1 0 0 17 538 

Other consumer loans ........................................................................................ 1,768 1,861 1,882 1,653 1,619 9.2 0 0 0 1,767 

Commercial and industrial loans .............................................................................. 314 311 348 407 455 -31.0 0 0 82 232 

All other loans, leases, and other assets .................................................................. 1,053 1,052 997 761 727 44.8 1 25 49 978 

Total credit exposure ................................................................................................ 31,331 29,952 32,093 35,695 34,796 -10.0 14 517 359 30,442 

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

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

5,667 6,116 6,872 7,323 9,359 -39.4 0 0 0 5,667 

1-4 family residential loans .................................................................................... 2.5 2.1 3.0 2.4 2.1 0.0 0.0 2.0 2.5 

Home equity loans ................................................................................................ 0.6 0.7 0.7 0.7 0.6 0.0 0.0 1.8 0.6 

Credit card receivables ........................................................................................ 1.9 1.9 2.0 2.0 1.9 0.0 2.7 0.9 1.9 

Auto loans ............................................................................................................ 1.7 1.5 1.7 1.3 1.1 0.0 0.0 0.9 1.7 

Other consumer loans ........................................................................................ 2.8 2.4 3.0 3.0 2.6 0.0 0.0 0.0 2.8 

Commercial and industrial loans .............................................................................. 0.5 0.7 0.7 1.2 1.2 0.0 0.0 1.4 0.0 

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

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

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

2.1 1.9 2.4 2.0 1.7 0.0 2.5 1.1 2.1 

1-4 family residential loans .................................................................................... 1.2 1.1 1.2 0.9 1.1 0.0 0.0 0.6 1.2 

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

Credit card receivables ........................................................................................ 1.6 1.8 1.7 1.6 1.6 0.0 1.6 0.6 1.6 

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

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

Commercial and industrial loans .............................................................................. 0.6 0.6 0.7 0.8 0.9 0.0 0.0 1.4 0.1 

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

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

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

1.2 1.1 1.2 1.1 1.2 0.0 1.5 0.8 1.2 

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

Home equity loans ................................................................................................ 0.1 0.1 0.3 0.2 0.1 0.0 0.0 0.7 0.1 

Credit card receivables ........................................................................................ 2.2 1.1 3.8 2.9 1.9 0.0 2.2 1.0 2.3 

Auto loans ............................................................................................................ 0.5 0.3 0.7 0.5 0.3 0.0 0.0 0.2 0.5 

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

Commercial and industrial loans .............................................................................. 0.7 0.4 1.3 1.2 0.8 0.0 0.0 2.0 0.0 

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

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

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

0.5 0.3 1.1 1.2 0.8 0.0 2.0 1.2 0.5 

Home equity loans ................................................................................................ 651 671 869 728 650 0.2 0 0 3 648 

Credit card receivables ........................................................................................ 73,405 61,569 75,225 68,885 82,533 -11.1 0 341 4,820 68,244 

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

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

2,843 2,863 2,596 2,891 3,284 -13.4 0 0 875 1,968 

Home equity loans ................................................................................................ 10 10 10 11 12 -16.7 0 0 0 10 

Credit card receivables ........................................................................................ 327 281 322 184 137 138.7 0 27 301 0 

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

Assets Sold with Recourse and Not Securitized 

9 1 5 0 0 0.0 0 0 0 9 

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

Outstanding Principal Balance by Asset Type 

733 729 715 708 698 5.0 168 420 100 45 

1-4 family residential loans .................................................................................... 55,761 58,005 55,761 56,002 54,319 2.7 934 6,657 2,684 45,487 

Home equity, credit card receivables, auto, and other consumer loans ........................... 601 1,905 708 115 124 NM 1 30 10 561 

Commercial and industrial loans ........................................................................... 7,716 8,198 6,668 6,781 6,184 24.8 8 90 330 7,288 

All other loans, leases, and other assets ..................................................................... 8,035 8,103 6,981 7,403 12,998 -38.2 2 47 183 7,803 

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

Maximum Credit Exposure by Asset Type 

72,114 76,210 70,118 70,302 73,625 -2.1 945 6,824 3,206 61,139 

1-4 family residential loans .................................................................................... 14,884 16,112 13,197 13,698 12,167 22.3 70 1,463 1,894 11,457 

Home equity, credit card receivables, auto, and other consumer loans ........................ 564 1,869 663 47 64 NM 1 7 1 556 

Commercial and industrial loans ........................................................................... 4,461 4,543 4,499 4,479 4,272 4.4 8 65 330 4,058 

All other loans, leases, and other assets .................................................................. 2,383 2,428 2,530 2,502 2,161 10.3 2 22 90 2,270 

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

Support for Securitization Facilities Sponsored by Other Institutions 

22,292 24,952 20,888 20,726 18,663 19.4 81 1,557 2,314 18,340 

Number of institutions reporting securitization facilities sponsored by others ........................ 50 47 47 48 46 8.7 24 15 3 8 

Total credit exposure ................................................................................................ 1,375 1,348 1,135 958 853 61.2 6 123 95 1,151 

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

Other 

14,093 5,827 6,257 5,066 4,251 231.5 0 0 0 14,093 

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

Asset-backed commercial paper conduits 

3,571,164 3,493,527 3,392,129 3,072,169 2,836,997 25.9 7,553 63,015 89,301 3,411,295 

Credit exposure to conduits sponsored by institutions and others .................................... 22,211 21,404 20,714 19,244 19,293 15.1 2 99 0 22,109 

Unused liquidity commitments to conduits sponsored by institutions and others .................. 364,656 327,395 306,435 294,329 286,363 27.3 0 0 0 364,656 

Net servicing income (for the quarter) ........................................................................... 5,333 3,601 2,159 3,381 4,262 25.1 50 182 155 4,946 

Net securitization income (for the quarter) ..................................................................... 5,437 5,051 2,407 6,832 6,225 -12.7 0 210 141 5,086 

Total credit exposure to Tier 1 capital (%)*** .................................................................. 5.7 5.9 5.8 6.1 5.9 0.4 1.7 2.1 7.3 

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

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

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

FDIC QUARTERLY 13 2007, VOLUME 1, NO. 2 
Author: 

Author: 

Insurance Fund Indicators 

■ Domestic Deposit Growth Is Flat 

■ Foreign Deposits Show Record Growth 

■ DIF Reserve Ratio Rises 1 Basis Point to 1.21 Percent 

■ New Risk-Based Assessments Add $140 Million to the DIF 

Total assets of the nation’s 8,615 FDIC-insured commercial banks and savings institutions increased by 

$279.9 billion (2.3 percent) during the second quarter 

of 2007. About half of the quarter’s asset growth was 

funded by deposits, as interest-bearing deposits 

increased by $127.6 billion (1.9 percent), and 

noninterest-bearing deposits increased by $12.5 billion 

(1.0 percent). Deposit growth was concentrated in foreign offices, up $143.3 billion (11.9 percent). This was 

the largest quarterly increase of foreign office deposits 

on record. Domestic deposits were almost unchanged 

in the second quarter, declining by only $3.2 billion, 

(0.05 percent) from the previous quarter. 

At the end of June, deposits funded nearly two-thirds of 

insured institution assets, with insured deposits funding 

34 percent, uninsured domestic deposits funding 20 

percent, and foreign office deposits funding 11 percent. 

Estimated insured deposits declined slightly in the second quarter of 2007 (a 0.3 percent decrease), compared 

to a first quarter rise of 2.1 percent and a 1.0 percent 

increase in the second quarter of 2006. For institutions 

existing as of March 31, 2007 and June 30, 2007, 

insured deposits increased during the second quarter at 

4,658 institutions (54 percent), decreased at 3,862 

institutions (45 percent), and remained unchanged at 

46 institutions. 

The Deposit Insurance Fund (DIF) increased by 0.9 

percent ($482 million) during the second quarter to 

$51,227 million (unaudited). Accrued assessment 

income added $140 million to the DIF during the second quarter. The fund received $501 million (net of 

expenses) from interest on securities and other revenue 

and $3 million from a decrease in provisions for insurance losses. Unrealized losses on available-for-sale 

securities reduced the DIF by $162 million. 

The increase in the DIF combined with nearly flat 

insured deposit growth raised the DIF reserve ratio to 

1.21 percent, one basis point higher than the previous 

quarter, but the reserve ratio is two basis points lower 

than a year earlier. 

There were no failures of FDIC-insured institutions 

during the second quarter of 2007. For the first half of 

2007, one insured institution failed with assets of $15.3 

million and an estimated loss to the DIF of $7.2 million. 

Author: 	 Kevin Brown, Sr. Financial Analyst 

Division of Insurance and Research, FDIC 

(202) 898-6817 

FDIC QUARTERLY	 14 2007, VOLUME 1, NO. 2 
 

 

 

 

Quarterly Banking Profile 

TABLE I-B. Insurance Fund Balances and Selected Indicators 

(dollar figures in millions) Deposit Insurance Fund 

2nd Quarter 

2007 

1st Quarter 

2007 

4th Quarter 

2006 

3rd Quarter 

2006 

2nd Quarter 

2006 

1st Quarter 

2006 

4th Quarter 

2005 

3rd Quarter 

2005 

2nd Quarter 

2005 

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

Changes in Fund Balance: 

$50,745 $50,165 $49,992 $49,564 $49,193 $48,597 $48,373 $48,023 $47,617 

Assessments earned................................................... 140 94 10 10 7 5 13 20 14 

Interest earned on investment securities........................ 748 567 476 622 665 478 675 536 657 

Operating expenses................................................... 248 239 248 237 242 224 252 227 254 

Provision for insurance losses....................................... -3 -73 49 -50 -6 -45 -19 -65 -57 

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

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

1 4 5 1 12 349 4 3 4 

securities............................................................... -162 81 -21 -18 -77 -57 -235 -47 -72 

Total fund balance change.......................................... 482 580 173 428 371 596 224 350 406 

Ending Fund Balance*............................................. 51,227 50,745 50,165 49,992 49,564 49,193 48,597 48,373 48,023

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

Reserve Ratio (%)...................................................... 1.21 1.20 1.21 1.22 1.23 1.23 1.25 1.26 1.28 

Estimated Insured Deposits ....................................... 4,229,874**** 4,241,209 4,152,806 4,099,769 4,040,368 4,001,921 3,890,944 3,830,950 3,757,728

 Percent change from four quarters earlier..................... 4.69**** 5.98 6.73 7.02 7.52 8.50 7.42 7.63 6.40 

Assessment Base 6,815,248 6,801,622 6,595,300 6,439,293 6,386,880 6,272,524 6,177,431 6,038,857 5,878,968

 Percent change from four quarters earlier..................... 6.71 8.44 6.76 6.63 8.64 8.15 8.88 9.47 8.36 

Number of institutions reporting................................. 8,626 8,662 8,693 8,755 8,790 8,803 8,845 8,870 8,881 

DIF Reserve Ratio* 

Percent of Insured Deposits 

1.32 

1.28 

1.24 

1.20 

1.16 

1.12 

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

1.33 1.32 1.32 1.31 

1.29 1.28 

1.26 1.25 

1.23 1.23 1.22 1.21 1.20 1.21 

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

Deposit Insurance Fund Balance 

and Insured Deposits* 

($Millions) 

DIF DIF-Insured 

Balance Deposits 

12/03 46,022 3,452,503
 

3/04 46,558 3,499,469
 

6/04 46,521 3,531,806
 

9/04 46,990 3,559,489
 

12/04 47,507 3,622,068
 

3/05 47,617 3,688,562
 

6/05 48,023 3,757,728
 

9/05 48,373 3,830,950
 

12/05 48,597 3,890,944
 

3/06 49,193 4,001,921
 

6/06 49,564 4,040,368
 

9/06 49,992 4,099,769
 

12/06 50,165 4,152,806 

3/07 50,745 4,241,209 

6/07 51,227 4,229,874**** 

(dollar figures in millions) 2007*** 2006*** 2006 2005 2004 2003 2002 

Problem Institutions

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

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

Failed/Assisted Institutions

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

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

61 

$23,077 

1 

$15 

50 

$5,539 

0 

$0 

50 

$8,265 

0 

$0 

52 

$6,607 

0

$0 

80 

$28,250 

$166 

4 

116 

$29,917 

$1,097 

3 

136

$38,927 

$2,558 

11 

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

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

*** Through June 30.
 

**** Insured deposit total for June 30 has been updated from the originally published amount to reflect an amendment to submitted data.
 

FDIC QUARTERLY 15 2007, VOLUME 1, NO. 2 
 

 

 

 

 

 

 

 

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

(dollar figures in millions) 

June 30, 2007 

Commercial Banks and Savings Institutions 

Number of 

Institutions 

Total 

Assets 

Domestic 

Deposits* 

Est. Insured 

Deposits 

FDIC-Insured Commercial Banks .............................................. $10,410,995 7,350 $5,522,309 $3,317,278 

FDIC-Supervised ............................................................... 1,914,303 4,785 1,424,370 955,492 

OCC-Supervised ............................................................... 1,677 7,061,682 3,267,489 1,859,439 

Federal Reserve-Supervised ................................................. 888 1,435,010 830,451 502,347 

FDIC-Insured Savings Institutions ............................................. 1,265 1,850,034 1,169,364 906,917**

 OTS-Supervised Savings Institutions ...................................... 836 1,542,479 949,688 736,182**

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

Total Commercial Banks and 

429 307,555 219,676 170,735 

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

Other FDIC-Insured Institutions 

8,615 12,261,029 6,691,674 4,224,195** 

U.S. Branches of Foreign Banks ............................................... 16,861 11 6,875 5,680 

Total FDIC-Insured Institutions ................................................ 8,626 12,277,891 6,698,548 4,229,874** 

*Excludes $1,344 billion in foreign office deposits, which are uninsured.
 

**Insured deposit total for June 30 has been updated from the originally published amount to reflect an amendment to submitted data.
 

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

Quarter Ending March 31, 2007 

(dollar figures in billions) Annual Percent of Total 

Rate in Number of Percent of Total Assessment Assessment 

Risk Category Basis Points Institutions Institutions Base Base 

I - Minimum ............................................ 5 3,079 35.5% 4,019.8 59.1% 

I - Middle ................................................ 5.01- 6.00 3,266 37.7% 2,095.5 30.8% 

I - Middle ................................................ 6.01- 6.99 1,235 14.3% 411.3 6.0% 

I - Maximum ........................................... 7 633 7.3% 168.8 2.5% 

II .......................................................... 10 393 4.5% 87.8 1.3% 

III .......................................................... 28 50 0.6% 7.5 0.1% 

IV ......................................................... 43 6 0.1% 11.0 0.2% 

Note: Institutions are categorized based on supervisory ratings, debt ratings and financial data as of March 31, 2007. 


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


FDIC QUARTERLY 16 2007, VOLUME 1, NO. 2 
Quarterly Banking Profile 

Notes To Users 

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

Corporation (FDIC). These notes are an integral part of this publication and provide information regarding the comparability of source 

data and reporting differences over time. 

Tables I-A through VIII-A. 

The information presented in Tables I-A through V-A of the FDIC 

Quarterly Banking Profile is aggregated for all FDIC-insured 

Institutions, both commercial banks and savings institutions. Tables 

VI-A (Derivatives) and VII-A (Servicing, Securitization, and Asset 

Sales Activities) aggregate information only for insured commercial 

banks and state-chartered savings banks that file quarterly Call 

Reports. Table VIII-A Trust Services aggregates Trust asset and 

income information collected annually from all FDIC-insured institutions. Some tables are arrayed by groups of FDIC-insured institutions 

based on predominant types of asset concentration, while other tables 

aggregate institutions by asset size and geographic region. Quarterly 

and full-year data are provided for selected indicators, including 

aggregate condition and income data, performance ratios, condition 

ratios and structural changes, as well as past due, noncurrent and 

charge-off information for loans outstanding and other assets. 

Tables I-B through IV-B. 

A separate set of tables (Tables I-B through IV-B) provides comparative quarterly data related to the Deposit Insurance Fund (DIF), problem institutions, failed/assisted institutions, estimated FDIC-insured 

deposits, as well as assessment rate information. Depository institutions that are not insured by the FDIC through the DIF are not 

included in the FDIC Quarterly Banking Profile. U.S. branches of 

institutions headquartered in foreign countries and non-deposit trust 

companies are not included unless otherwise indicated. Efforts are 

made to obtain financial reports for all active institutions. However, 

in some cases, final financial reports are not available for institutions 

that have closed or converted their charters. 

DATA SOURCES 

The financial information appearing in this publication is obtained 

primarily from the Federal Financial Institutions Examination 

Council (FFIEC) Call Reports and the OTS Thrift Financial Reports 

submitted by all FDIC-insured depository institutions. This information is stored on and retrieved from the FDIC’s Research Information 

System (RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial Reports to 

provide closer conformance with the reporting and accounting 

requirements of the FFIEC Call Reports. Parent institutions are 

required to file consolidated reports, while their subsidiary financial 

institutions are still required to file separate reports. Data from subsidiary institution reports are included in the Quarterly Banking Profile 

tables, which can lead to double-counting. No adjustments are made 

for any double-counting of subsidiary data. 

All asset and liability figures used in calculating performance ratios 

represent average amounts for the period (beginning-of-period 

amount plus end-of-period amount plus any interim periods, divided 

by the total number of periods). For “pooling-of-interest” mergers, the 

assets of the acquired institution(s) are included in average assets 

since the year-to-date income includes the results of all merged institutions. No adjustments are made for “purchase accounting” mergers. 

Growth rates represent the percentage change over a 12-month period in totals for institutions in the base period to totals for institutions 

in the current period. 

All data are collected and presented based on the location of each 

reporting institution's main office. Reported data may include assets 

and liabilities located outside of the reporting institution’s home state. 

In addition, institutions may relocate across state lines or change their 

charters, resulting in an inter-regional or inter-industry migration, 

e.g., institutions can move their home offices between regions, and 

savings institutions can convert to commercial banks or commercial 

banks may convert to savings institutions. 

ACCOUNTING CHANGES 

FASB Statement No. 157 Fair Value Measurements issued in September 2006 

and FASB Statement No. 159 The Fair Value Option for Financial Assets and 

Financial Liabilities issued in February 2007 – both are effective in 2008 

with early adoption permitted in 2007. FAS 157 defines a fair value 

measurement framework, while FAS 159 allows banks to elect a fair 

value option when assets are recognized on the balance sheet and to 

report certain financial assets and liabilities at fair value with subsequent changes in fair value included in earnings. Existing eligible 

items can be fair-valued as early as January 2007 under FAS 159, if 

a bank adopts FAS 157. 

FASB Statement 158 Employers’ Accounting for Defined Benefit Pension and 

Other Postretirement Plans – issued in September 2006 requires a bank 

to recognize in 2007 the funded status of its postretirement plans on 

its balance sheet. An overfunded plan is recognized as an asset and 

an underfunded plan is recognized as a liability. An adjustment is 

made to equity as accumulated other comprehensive income 

(AOCI) upon application of FAS 158 and AOCI is adjusted in subsequent periods as net periodic benefit costs are recognized in earnings. 

FASB Statement No. 156 Accounting for Servicing of Financial Assets – issued 

in March 2006 and effective in 2007, requires all separately recognized servicing assets and liabilities to be initially measured at fair 

value and allows a bank the option to subsequently adjust that 

value by periodic revaluation and recognition of earnings or by periodic amortization to earnings. 

Purchased Impaired Loans and Debt Securities – Statement of Position 03­

3, Accounting for Certain Loans or Debt Securities Acquired in a Transfer. 

The SOP applies to loans and debt securities acquired in fiscal years 

beginning after December 15, 2004. In general, this Statement of 

Position applies to “purchased impaired loans and debt securities,” i.e., 

loans and debt securities that a bank has purchased, including those 

acquired in a purchase business combination, when it is probable, at 

the purchase date, that the bank will be unable to collect all contractually required payments receivable. Banks must follow Statement of 

Position 03-3 for Call Report purposes. The SOP does not apply to 

the loans that a bank has originated, prohibits “carrying over” or creation of valuation allowances in the initial accounting and any subsequent valuation allowances reflect only those losses incurred by the 

investor after acquisition. 

GNMA Buy-back Option – If an issuer of GNMA securities has the 

option to buy back the loans that collateralize the GNMA securities, 

when certain delinquency criteria are met, FASB Statement No. 140 

requires that loans with this buy-back option must be brought back 

on the issuer's books as assets. The rebooking of GNMA loans is 

required regardless of whether the issuer intends to exercise the buyback option. The banking agencies clarified in May 2005 that all 

GNMA loans that are rebooked because of delinquency should be 

reported as past due according to their contractual terms. 

FDIC QUARTERLY 17 2007, VOLUME 1, NO. 2 
FASB Interpretation No. 45 – In November 2002, the FASB issued 

Interpretation No. 45, Guarantor’s Accounting and Disclosure 

Requirements for Guarantees, Including Indirect Guarantees of 

Indebtedness of Others. This interpretation clarifies that a guarantor is 

required to recognize, at the inception of a guarantee (financial standby letters of credit, performance standby letters of credit), a liability 

for the fair value of the obligation undertaken in issuing the guarantee. Banks apply the initial recognition and measurement provisions 

of Interpretation No. 45 on a prospective basis to guarantees issued or 

modified after December 31, 2002, irrespective of the bank’s fiscal 

year end. A bank’s previous accounting for guarantees issued prior to 

January 1, 2003, is not revised. 

FASB Interpretation No. 46 – The FASB issued Interpretation No. 46, 

Consolidation of Variable Interest Entities, in January 2003 and revised it 

in December 2003. Generally, banks with variable interests in variable interest entities created after December 31, 2003, must consolidate them. The timing of consolidation varies with certain situations 

with application as late as 2005. The assets and liabilities of a consolidated variable interest entity are reported on a line-by-line basis 

according to the asset and liability categories shown on the bank’s balance sheet, as well as related income items. Most small banks are 

unlikely to have any “variable interests” in variable interest entities. 

FASB Statement No. 123 (Revised 2004) and Share-Based Payments 

– requires all entities to recognize compensation expense in an 

amount equal to the fair value of share-based payments, e.g., stock 

options and restricted stock, granted to employees. As of January 2006 

all banks must adopt FAS 123(R). The compensation cost is typically 

recognized over the vesting period with a corresponding credit to 

equity. The recording of the compensation cost also gives rise to a 

deferred tax asset. 

Goodwill and intangible assets – FAS 141 terminates the use of pooling-of-interest accounting for business combinations after 2001 and 

requires purchase accounting. Under FAS 142 amortization of goodwill is eliminated. Only intangible assets other than goodwill are 

amortized each quarter. In addition companies are required to test for 

impairment of both goodwill and other intangibles once each fiscal 

year. The year 2002, the first fiscal year affected by this accounting 

change, has been designated a transitional year and the amount of initial impairments are to be recorded as extraordinary losses on a “net of 

tax” basis (and not as noninterest expense). Subsequent annual 

review of intangibles and goodwill impairment may require additional 

noninterest expense recognition. FASB Statement No. 147 clarifies 

that acquisitions of financial institutions (except transactions between 

two or more mutual enterprises), including branch acquisitions that 

meet the definition of a business combination, should be accounted 

for by the purchase method under FASB Statement No. 141. This 

accounting standard includes transition provisions that apply to 

unidentifiable intangible assets previously accounted for in accordance 

with FASB Statement No. 72. If the transaction (such as a branch 

acquisition) in which an unidentifiable intangible asset arose does not 

meet the definition of a business combination, this intangible asset is 

not be reported as “Goodwill” on the Call Report balance sheet. 

Rather, this unidentifiable intangible asset is reported as “Other intangible assets,” and must continue to be amortized and the amortization 

expense should be reported in the Call Report income statement. 

FASB Statement No. 133 Accounting for Derivative Instruments and Hedging 

Activities – All banks must recognize derivatives as either assets or liabilities on the balance sheet, measured at fair value. A derivative may 

be specifically designated as a “fair value hedge,” a “cash flow hedge,” 

or a hedge of a foreign currency exposure. The accounting for 

changes in the value of a derivative (gains and losses) depends on the 

intended use of the derivative, its resulting designation, and the effectiveness of the hedge. Derivatives held for purposes other than trading are reported as “other assets” (positive fair values) or “other liabilities” (negative fair values). For a fair value hedge, the gain or loss is 

recognized in earnings and “effectively” offsets loss or gain on the 

hedged item attributable to the risk being hedged. Any ineffectiveness of the hedge could result in a net gain or loss on the income 

statement. Accumulated net gains (losses) on cash flow hedges are 

recorded on the balance sheet as “accumulated other comprehensive 

income” and the periodic change in the accumulated net gains (losses) for cash flow hedges is reflected directly in equity as the value of 

the derivative changes. FASB Statement No. 149, Amendment of 

Statement 133 on Derivative Instruments and Hedging Activities 

provides guidance on the circumstances in which a loan commitment 

must be accounted for as derivative. Under Statement No. 149, loan 

commitments that relate to the origination of mortgage loans that will 

be held for sale, commonly referred to as interest rate lock commitments, must be accounted for as derivatives on the balance sheet by 

the issuer of the commitment. 

DEFINITIONS (in alphabetical order) 

All other assets – total cash, balances due from depository institutions, 

premises, fixed assets, direct investments in real estate, investment in 

unconsolidated subsidiaries, customers’ liability on acceptances outstanding, assets held in trading accounts, federal funds sold, securities 

purchased with agreements to resell, fair market value of derivatives, 

and other assets. 

All other liabilities – bank's liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses, 

fair market value of derivatives, and other liabilities. 

Assessment base –assessable deposits consist of DIF deposits (deposits 

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

offices with certain adjustments. 

Assets securitized and sold – total outstanding principal balance of 

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

Construction and development loans – includes loans for all property 

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

development. 

Core capital – common equity capital plus noncumulative perpetual 

preferred stock plus minority interest in consolidated subsidiaries, less 

goodwill and other ineligible intangible assets. The amount of eligible 

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

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

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

Credit enhancements – techniques whereby a company attempts to 

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

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

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

enhancement may be associated with a given issuance. 

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

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

Federal Deposit Insurance Reform Act to form the DIF. 

Derivatives notional amount – The notional or contractual amounts of 

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

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

FDIC QUARTERLY 18 2007, VOLUME 1, NO. 2 
Quarterly Banking Profile 

Derivatives credit equivalent amount – the fair value of the derivative 

plus an additional amount for potential future credit exposure based 

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

contract. 

Derivatives transaction types: 

Futures and forward contracts – contracts in which the buyer agrees 

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

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

or indices, (traditional agricultural or physical commodities, as 

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

on counterparty credit exposure. Forward contracts do not have 

standardized terms and are traded over the counter. 

Option contracts – contracts in which the buyer acquires the right 

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

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

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

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

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

Swaps – obligations between two parties to exchange a series of 

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

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

for each settlement date by multiplying the quantity (notional 

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

Derivatives underlying risk exposure – the potential exposure characterized by the level of banks’ concentration in particular underlying 

instruments, in general. Exposure can result from market risk, credit 

risk and operational risk, as well as, interest rate risk. 

Domestic deposits to total assets – total domestic office deposits as a percent of total assets on a consolidated basis.
 

Earning assets – all loans and other investments that earn interest or
 

dividend income.
 

Efficiency ratio – Noninterest expense less amortization of intangible
 

assets as a percent of net interest income plus noninterest income.
 

This ratio measures the proportion of net operating revenues that are
 

absorbed by overhead expenses, so that a lower value indicates greater
 

efficiency.
 

Estimated insured deposits – in general, insured deposits are total
 

domestic deposits minus estimated uninsured deposits. Prior to June
 

30, 2000 the uninsured estimate is calculated as the sum of the excess
 

amounts in accounts over $100,000. Beginning June 30, 2000 the
 

amount of estimated uninsured deposits is adjusted to consider a
 

financial institution's own estimate of uninsured deposits when such
 

an estimate is reported. Beginning in 2006 the uninsured deposits estimate also considers IRA accounts over $250,000.
 

Failed/assisted institutions – an institution fails when regulators take
 

control of the institution, placing the assets and liabilities into a
 

bridge bank, conservatorship, receivership, or another healthy institution. This action may require the FDIC to provide funds to cover
 

losses. An institution is defined as “assisted” when the institution
 

remains open and receives some insurance funds in order to continue
 

operating.
 

FHLB advances – all borrowings by FDIC insured institutions from the
 

Federal Home Loan Bank System (FHLB), as reported by Call Report
 

filers and by TFR filers.
 

Goodwill and other intangibles – intangible assets include servicing 

rights, purchased credit card relationships and other identifiable 

intangible assets. Goodwill is the excess of the purchase price over the 

fair market value of the net assets acquired. 

Loans secured by real estate – includes home equity loans, junior liens 

secured by 1-4 family residential properties and all other loans secured 

by real estate. 

Loans to individuals – includes outstanding credit card balances and 

other secured and unsecured consumer loans.
 

Long-term assets (5+ years) – loans and debt securities with remaining
 

maturities or repricing intervals of over five years.
 

Maximum credit exposure – the maximum contractual credit exposure
 

remaining under recourse arrangements and other seller-provided
 

credit enhancements provided by the reporting bank to securitizations.
 

Mortgage-backed securities – certificates of participation in pools of residential mortgages and collateralized mortgage obligations issued or
 

guaranteed by government-sponsored or private enterprises. Also, see
 

“Securities”, below.
 

Net charge-offs – total loans and leases charged off (removed from balance sheet because of uncollectibility), less amounts recovered on
 

loans and leases previously charged off.
 

Net interest margin – the difference between interest and dividends
 

earned on interest-bearing assets and interest paid to depositors and
 

other creditors, expressed as a percentage of average earning assets.
 

No adjustments are made for interest income that is tax exempt.
 

Net loans to total assets – loans and lease financing receivables, net of
 

unearned income, allowance and reserves, as a percent of total assets
 

on a consolidated basis.
 

Net operating income – income excluding discretionary transactions
 

such as gains (or losses) on the sale of investment securities and
 

extraordinary items. Income taxes subtracted from operating income
 

have been adjusted to exclude the portion applicable to securities
 

gains (or losses).
 

Noncurrent assets – the sum of loans, leases, debt securities and other 

assets that are 90 days or more past due, or in nonaccrual status. 

Noncurrent loans & leases – the sum of loans and leases 90 days or 

more past due, and loans and leases in nonaccrual status. 

Number of institutions reporting – the number of institutions that actually filed a financial report.
 

Other borrowed funds – federal funds purchased, securities sold with
 

agreements to repurchase, demand notes issued to the U.S. Treasury,
 

FHLB advances, other borrowed money, mortgage indebtedness, obligations under capitalized leases and trading liabilities, less revaluation
 

losses on assets held in trading accounts.
 

Other real estate owned – primarily foreclosed property. Direct and
 

indirect investments in real estate ventures are excluded. The amount
 

is reflected net of valuation allowances. For institutions that file a
 

Thrift Financial Report (TFR), the valuation allowance subtracted
 

also includes allowances for other repossessed assets. Also, for TFR
 

filers the components of other real estate owned are reported gross of
 

valuation allowances. 


Percent of institutions with earnings gains – the percent of institutions
 

that increased their net income (or decreased their losses) compared
 

to the same period a year earlier.
 

“Problem” institutions – federal regulators assign a composite rating to
 

each financial institution, based upon an evaluation of financial and
 

operational criteria. The rating is based on a scale of 1 to 5 in ascend-


FDIC QUARTERLY 19 2007, VOLUME 1, NO. 2 
ing order of supervisory concern. “Problem” institutions are those 

institutions with financial, operational, or managerial weaknesses that 

threaten their continued financial viability. Depending upon the 

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

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

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

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

the OTS, the OTS composite rating is used. 

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

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

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

credit risk is recourse. 

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

Restructured loans and leases – loan and lease financing receivables 

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

terms. 

Retained earnings – net income less cash dividends on common and 

preferred stock for the reporting period.
 

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

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

basic yardstick of bank profitability.
 

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

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

Risk-based capital groups – definition: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) Capital * Capital * Leverage Equity 

Well-capitalized >10 and >6 and >5 — 

Adequately 

capitalized >8 and >4 and >4 — 

Undercapitalized >6 and >3 and >3 — 

Significantly 

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

Critically 

undercapitalized — — — <2 

*As a percentage of risk-weighted assets. 

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

Capital ratios and supervisory ratings distinguish one risk category 

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

Supervisory Group 

Capital Group A B C 

I 

1. Well Capitalized 5-7 bps III II 

28 bps 10 bps 2. Adequately Capitalized 

3. Undercapitalized III IV

28 bps 43 bps

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

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

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

generally includes institutions with CAMELS composite ratings of 4 

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

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

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

schedule without notice and comment, provided that any single 

adjustment from one quarter to the next cannot move rates more 

than 3 basis points. 

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

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

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

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

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

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

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

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

quarterly assessment period near the end of the quarter following the 

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

the last month of the quarter following the assessment period. 

Supervisory rating changes will be effective for assessment purposes as 

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

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

purposes as of the date the change was announced. 

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

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

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

conversion factor is used to assign a balance sheet equivalent amount 

for selected off-balance-sheet accounts. 

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

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

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

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

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

sales of assets held for sale. 

Seller’s interest in institution’s own securitizations – the reporting bank’s 

ownership interest in loans and other assets that have been securitized, except an interest that is a form of recourse or other seller-provided credit enhancement. Seller’s interests differ from the securities 

issued to investors by the securitization structure. The principal 

amount of a seller’s interest is generally equal to the total principal 

amount of the pool of assets included in the securitization structure 

less the principal amount of those assets attributable to investors, i.e., 

in the form of securities issued to investors. 

Subchapter S Corporation – A Subchapter S corporation is treated as a 

pass-through entity, similar to a partnership, for federal income tax 

purposes. It is generally not subject to any federal income taxes at the 

FDIC QUARTERLY 20 2007, VOLUME 1, NO. 2 
Quarterly Banking Profile 

corporate level. This can have the effect of reducing institutions’ 

reported taxes and increasing their after-tax earnings. 

Trust assets – market value, or other reasonably available value of 

fiduciary and related assets, to include marketable securities, and 

other financial and physical assets. Common physical assets held in 

fiduciary accounts include real estate, equipment, collectibles, and 

household goods. Such fiduciary assets are not included in the 

assets of the financial institution. 

Unearned income & contra accounts – unearned income for Call Report 

filers only. 

Unused loan commitments – includes credit card lines, home equity 

lines, commitments to make loans for construction, loans secured by 

commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for sale, which are accounted for as derivatives 

on the balance sheet.) 

Volatile liabilities – the sum of large-denomination time deposits, foreign-office deposits, federal funds purchased, securities sold under 

agreements to repurchase, and other borrowings. 

Yield on earning assets – total interest, dividend and fee income earned 

on loans and investments as a percentage of average earning assets. 

FDIC QUARTERLY 21 2007, VOLUME 1, NO. 2