FDIC Quarterly

Quarterly Banking Profile:

Third Quarter 2014

Highlights:

■ Quarterly Earnings of $38.7 Billion Are 7.3 Percent 

Higher Than a Year Ago

■ Revenue Growth Is Key to Net Income Improvement

■ Loan Balances for Community Banks Increased, 

Outpacing Industry Growth

■ Net Interest Margin for Community Banks Continued 

to Improve 

■ DIF Reserve Ratio Rises 5 Basis Points to 0.89 Percent

■ Two Institutions Fail During Third Quarter

2014, Volume 8, Number 4
Chairman Martin J. Gruenberg

Director, Division of Insurance Diane Ellis

and Research

Executive Editors Richard A. Brown

Maureen E. Sweeney

Managing Editors Matthew Green

Jack Reidhill

Philip A. Shively

Editors Peggi Gill

Frank Solomon

Publication Manager Lynne Montgomery

Media Inquiries (202) 898-6993

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

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

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

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

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

regulatory policy.

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2014, Volume 8, Number 4

FDIC Quarterly

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

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

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

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

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

Quarterly Banking Profile: Third Quarter 2014

FDIC-insured institutions reported aggregate net income of $38.7 billion in the third quarter of 2014, up $2.6 

billion (7.3 percent) from earnings of $36.1 billion the industry reported a year earlier. The increase in earnings was mainly attributable to a $7.8 billion (4.8 percent) increase in net operating revenue, the biggest since 

the fourth quarter of 2009. Almost two-thirds of the 6,589 insured institutions reporting (62.9 percent) had 

year-over-year growth in quarterly earnings. The proportion of banks that were unprofitable during the third 

quarter fell to 6.4 percent from 8.7 percent a year earlier. See page 1.

Community Bank Performance

Community banks—which represent 93 percent of insured institutions—reported net income of $4.9 billion 

in the third quarter, up $470.7 million (10.7 percent) from third quarter 2013. The increase was driven by 

improved net operating revenue and lower provision expenses. In the third quarter of 2014, loan balances at 

community banks grew at a faster pace than in the industry, asset quality indicators continued to show 

improvement, and community banks accounted for 45 percent of small loans to businesses. See page 15.

Insurance Fund Indicators

Estimated insured deposits increased 0.4 percent from the prior quarter and increased 2.8 percent over the 

12 months ending September 30, 2014. The DIF reserve ratio was 0.89 percent at September 30, 2014, up 

from 0.84 percent at June 30, 2014, and 0.68 percent at September 30, 2013. Two FDIC-insured institutions 

failed during the quarter. See page 22.

FDIC Quarterly 1 2014, Volume 8, No. 4

Quarterly Banking Profile Third Quarter 2014

More Banks Are Reporting Higher Earnings

Improving revenue performance across a growing 

proportion of institutions helped lift third quarter net 

income to $38.7 billion, a $2.6 billion (7.3 percent) 

increase over third quarter 2013 industry earnings. 

Almost 63 percent of institutions reported year-overyear improvement in quarterly net income, up from 50 

percent a year ago. Only 6.4 percent reported net losses 

for the quarter, compared with 8.7 percent a year ago. 

The average quarterly return on assets was 1.02 percent, 

slightly above the 1 percent return on assets in third 

quarter 2013.

Revenues Post Largest Increase in Five Years

Net operating revenue (net interest income plus total 

noninterest income) totaled $171.3 billion, a year-overyear increase of $7.8 billion (4.8 percent). This is the 

largest year-over-year growth in revenue since fourth 

quarter 2009. Almost 69 percent of all banks reported 

higher net operating revenue versus a year ago. Noninterest income was $5.4 billion (9.2 percent) higher, as 

gains on loan sales increased by $1.2 billion (45.6 

percent), and trading income was up $1.1 billion (25.3 

percent). This is the first time in the last five quarters 

that noninterest income has posted a year-over-year 

increase. More than half of all banks—52 percent—

reported growth in noninterest income. Net interest 

income increased by $2.4 billion (2.3 percent), with 71 

percent of institutions reporting year-over-year 

increases. Total interest income was $1.2 billion (1 

percent) higher than a year ago, while total interest 

expense was $1.2 billion (9.3 percent) lower. The 3.14 

percent average net interest margin in the third quarter 

was 12 basis points lower than in third quarter 2013, 

and was virtually unchanged from the 3.15 percent 

average in second quarter 2014. Most of the margin 

erosion remained concentrated among some of the largest banks. Slightly more than half of all banks—51 

percent—reported year-over-year increases in their net 

interest margins.

■ Quarterly Earnings of $38.7 Billion Are 7.3 Percent Higher Than a Year Ago

■ Revenue Growth Is Key to Net Income Improvement

■ Loan-Loss Provisions Post First Year-Over-Year Increase Since 2009

■ Balances of Troubled Loans Continue to Decline

INSURED INSTITUTION PERFORMANCE

Quarterly Net Income

All FDIC-Insured Institutions Billions of Dollars

Source: FDIC.

-$20

-$10

$0

$10

$20

$30

$40

$50

12341 2 3 4123412341 234123

-6.1

-12.6

2009 2010

2.1

-1.7

17.4

20.923.821.4

28.7

2011

28.5

35.2

25.3

34.8

2012

34.4

37.5

34.5

2013

40.438.236.1

39.837.3

2014

40.138.7

Securities and Other Gains/Losses, Net

Net Operating Income

Chart 1 Chart 2

Unprotable Institutions and Institutions

With Increased Earnings

Percentage of All FDIC-Insured Institutions

Source: FDIC.

0

10

20

30

40

50

60

70

80

2006 2007 2008 2009 2010 2011 2012 2013 2014

Percentage of Institutions With Year-Over-Year

Quarterly Income Growth

Percentage of Institutions With Quarterly Losses
FDIC Quarterly 2 2014, Volume 8, No. 4

Litigation Expenses Decline

Noninterest expenses were $2 billion (1.9 percent) 

higher than a year ago. Salaries and employee benefits 

expenses were $2 billion (4.3 percent) higher, even 

though there were 31,731 (1.5 percent) fewer employees than in third quarter 2013. Goodwill impairment 

charges totaled $1.3 billion, a year-over-year increase of 

$1.1 billion. Itemized charges for litigation expenses at 

large banks totaled $3.7 billion, which was $1.6 billion 

less than a year ago.

Provisions Increase for First Time in Five Years

Loan-loss provisions totaled $7.2 billion, which was 

$1.4 billion (23.9 percent) more than banks set aside 

for loan losses in third quarter 2013. This is the first 

year-over-year increase in quarterly loss provisions in 

five years. A year ago, 400 banks reported negative 

quarterly loss provisions totaling $1.7 billion; in the 

third quarter, 402 institutions reported negative quarterly provisions totaling $331 million.

Charge-Off Rate Falls to Seven-Year Low

Insured institutions charged off $9.2 billion (net) in 

uncollectible loan balances in the third quarter, down 

$2.4 billion (21 percent) from a year ago. This is the 

17th consecutive quarter that charge-offs have been 

below year-earlier levels. The quarterly net charge-off 

rate of 0.45 percent was the lowest average since first 

quarter 2007. All major loan categories except auto 

loans registered lower levels of charge-offs. Charge-offs 

of 1-to-4 family residential mortgage loans were $695 

million (45.2 percent) lower than a year ago, while 

charge-offs of home equity lines of credit were down 

$526 million (45.9 percent). Credit card charge-offs 

were $366 million (6.9 percent) lower, and charge-offs 

on real estate loans secured by nonfarm nonresidential 

properties declined by $360 million (61.1 percent). Net 

charge-offs of auto loans were $104 million (22.8 

percent) higher.

Noncurrent Loan Balances Continue to Fall

The amount of noncurrent loan and lease balances (90 

days or more past due or in nonaccrual status) fell for 

the 18th quarter in a row, declining by $9.7 billion (5.3 

percent) in the three months ended September 30. All 

major loan categories except loans to individuals (credit 

cards, auto loans, and other loans to individuals) had 

declines in noncurrent balances. The largest decline 

occurred in 1-to-4 family residential mortgages, where 

noncurrent balances fell by $7.7 billion (6.6 percent). 

Noncurrent real estate loans secured by nonfarm 

nonresidential properties declined by $1.1 billion (6.2 

percent). In contrast to the overall declining trend in 

noncurrent loans, noncurrent balances rose during the 

quarter in credit cards (up $275 million, 3.8 percent), 

auto loans (up $99 million, 10.8 percent), and other 

loans to individuals (up $113 million, 2.7 percent). The 

percentage of loans and leases that were noncurrent at 

the end of the third quarter was 2.11 percent, the 

lowest average since midyear 2008. Almost 29 percent 

of all noncurrent loans consisted of residential mortgage 

loans with GNMA guarantees.

Chart 4

Percentage of Institutions Reporting Year-Over-Year

Growth in Net Operating Revenue

All FDIC-Insured Institutions

0

10

20

30

40

50

60

70

80

90

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: FDIC.

Percent

Chart 3

Quarterly Net Operating Revenue

All FDIC-Insured Institutions

Billions of Dollars

Source: FDIC.

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

1 2 3 4 1234 1234 1 2 3412 3412 3 4 1234 1 2 3

2007 2008 2009 2010 2011 2012 2013 2014

Quarterly Noninterest Income

Quarterly Net Interest Income
FDIC Quarterly 3 2014, Volume 8, No. 4

Quarterly Banking Profile

Reserve Coverage of Noncurrent Loans Improves 

for Ninth Consecutive Quarter

Loan-loss reserves fell for the 18th consecutive quarter. 

Net charge-offs of $9.2 billon exceeded loss provisions 

of $7.2 billion, as total reserves fell by $2.9 billion (2.3 

percent) during the three months ended September 30. 

The $125.3 billion in reserves at the end of September 

was less than half the peak level of $263.2 billion 

reached at the end of first quarter 2010. Despite the 

decline in reserves, the average coverage ratio of 

reserves to noncurrent loans improved for a ninth 

consecutive quarter, from 70.6 percent to 72.9 percent, 

owing to the larger decline in noncurrent loan balances 

during the quarter.

Capital Growth Trails Growth in Assets

Equity capital increased by $12.1 billion (0.7 percent), 

as retained earnings contributed $13.2 billion to capital 

growth. Declared dividends in the third quarter totaled 

$25.5 billion, an increase of $2.6 billion (11.6 percent) 

from a year ago. Other comprehensive income declined 

by $6.1 billion, while goodwill fell by $627 million (0.2 

percent) during the three months ended September 30. 

The average equity-to-assets ratio fell from 11.25 

percent to 11.20 percent during the quarter. At the end 

of the quarter, 98.5 percent of all insured institutions, 

representing 99.8 percent of total industry assets, met or 

exceeded the requirements for the highest regulatory 

capital category as defined for Prompt Corrective 

Action purposes.

Investments in Treasury Securities Post 

Sizable Increase

Total assets of insured institutions increased by $176.7 

billion (1.2 percent) during the quarter. Banks 

increased their investment securities holdings by $53.1 

billion (1.7 percent), as balances of U.S. Treasury securities rose by $72 billion (26.3 percent). Total loan and 

lease balances increased by $50.9 billion (0.6 percent), 

as most major loan categories posted quarterly increases. 

Loans to commercial and industrial borrowers increased 

by $10.1 billion (0.6 percent), auto loans rose by $9 

billion (2.4 percent), real estate loans secured by multifamily residential properties were up by $7.8 billion (2.8 

percent), real estate loans secured by nonfarm nonresidential properties increased by $7.7 billion (0.7 

percent), and real estate construction and development 

loans grew by $7.4 billion (3.3 percent). Loans to 

foreign banks fell by $15.6 billion (13 percent), and 

balances of residential mortgage loans declined by $6.7 

billion (0.4 percent), as the amount of mortgage 

balances sold during the quarter exceeded the balances 

of new mortgages originated for sale by $20.7 billion. 

Unfunded loan commitments increased by $107.4 

billion (1.7 percent). Loans to small businesses and 

farms increased by $2.2 billion (0.3 percent), as 54 

percent of all banks reported growth in their small business/farm portfolios. Assets in trading accounts rose by 

$36.8 billion (6.1 percent).

Chart 5

Year-Over-Year Change in Quarterly Loan-Loss Provisions

All FDIC-Insured Institutions

Billions of Dollars

Source: FDIC.

-$35

-$30

-$25

-$20

-$15

-$10

-$5

$0

$5

1 2 3 4 1234 1 2 3412 3

-30.7

1.4

2011 2012 2013 2014

Chart 6

Noncurrent Loan Rate and Quarterly Net Charge-Off Rate

All FDIC-Insured Institutions

Percent

Source: FDIC.

Noncurrent Loan Rate

Quarterly Net Charge-Off Rate

0

1

2

3

4

5

6

2006 2007 2008 2009 2010 2011 2012 2013 2014
FDIC Quarterly 4 2014, Volume 8, No. 4

Large Deposits Account for Bulk of Funding Growth

For a second consecutive quarter, large denomination 

(> $250,000) deposits accounted for much of the 

growth in industry funding. Balances in these accounts 

increased by $124.9 billion (2.5 percent), representing 

three-quarters of the $164.9 billion growth in total 

liabilities. Balances in smaller-denomination accounts 

declined by $11.3 billion (0.2 percent). Nondeposit 

liabilities rose by $58.6 billion (3 percent), as liabilities in trading accounts increased by $44.8 billion 

(20.3 percent).

“Problem List” Continues to Improve

The number of insured institutions reporting financial 

results fell to 6,589, from 6,656 in the second quarter. 

Two insured institutions failed during the third quarter, 

compared with six failures a year ago. Mergers absorbed 

64 institutions, and one institution in the process of 

voluntary liquidation did not file a report. For a third 

consecutive quarter, no new reporters were added. 

There has been only one de novo bank charter since 

fourth quarter 2010. The number of institutions on the 

FDIC’s “Problem List” fell from 354 to 329 during the 

quarter, and assets of “problem” banks declined from 

$110.2 billion to $102.3 billion. This is the 14th 

consecutive quarter that the number and assets of 

“problem” institutions have declined, and the fewest 

“problem” institutions since March 31, 2009. The 

number of full-time equivalent employees at insured 

institutions declined for the sixth time in the past 

seven quarters, falling by 11,364 (0.6 percent) from 

second-quarter levels.

Author: Ross Waldrop, Senior Banking Analyst

Division of Insurance and Research

(202) 898-3951

Chart 7

Quarterly Change in Loan Balances

All FDIC-Insured Institutions Billions of Dollars

43

189

237

203

61

28

-6

-116-140

-109

-210

-133 -107

-7 -14

-126

67

24

-63

102

65

118

-37

73 70 91

38

178

51

221*

134

-$250

-$200

-$150

-$100

-$50

$0

$50

$100

$150

$200

$250

$300

1 234123412341234123412341234123

2007 2008 2009 2010 2011 2012 2013 2014

Source: FDIC.

*FASB Statements 166 and 167 resulted in the consolidation of large amounts of securitized

loan balances back onto banks’ balance sheets in the first quarter of 2010. Although the 

total amount consolidated cannot be precisely quantified, the industry would have reported

a decline in loan balances for the quarter absent this change in accounting standards.

Chart 8

Quarterly Changes in the Number of

Troubled Institutions

Source: FDIC.

Quarterly Failures

Net Quarterly Change in

Number of Problem Banks

27

81

53 73 54

31 24

-23-21-31 -40-38

-43

-39

-59

-38

-48

-56-57

-25

50 45

41

45

41

30

26 14 22 26 18 16 15 12 8 12

54

111

136

150

4

-41

27

81

53 73 54

31 24

-23-21-31 -40-38

-43

-39

-59

-38

-48

-56-57

-25

14

54

111

136

150

4

-41

2

2

9

12

21

24

4 6 2 5 7 2

-75

-50

-25

0

25

50

75

100

125

150

175

200

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

2008 2009 2010 2011 2012 2013 2014
FDIC Quarterly 5 2014, Volume 8, No. 4

Quarterly Banking Profile

TABLE I-A. Selected Indicators, All FDIC-Insured Institutions* 2014** 2013** 2013 2012 2011 2010 2009

Return on assets (%)������������������������������������������������������������������������������������������������������ 1.03 1.06 1.07 1.00 0.88 0.6

Return on equity (%)������������������������������������������������������������������������������������������������������� 9.19 9.47 9.54 8.91 7.79 5.8

Core capital (leverage) ratio (%) ������������������������������������������������������������������������������������ 9.52 9.40 9.40 9.15 9.07 8.

Noncurrent assets plus other real estate owned to assets (%) ������������������������������������ 1.29 1.75 1.63 2.20 2.61 3.

Net charge-offs to loans (%) ������������������������������������������������������������������������������������������ 0.49 0.72 0.69 1.10 1.55 2.

Asset growth rate (%) ����������������������������������������������������������������������������������������������������� 5.11 2.68 1.94 4.02 4.30 1.7

Net interest margin (%)��������������������������������������������������������������������������������������������������� 3.15 3.26 3.26 3.42 3.60 3.

Net operating income growth (%)����������������������������������������������������������������������������������� 2.36 10.86 12.83 17.81 43.57 1,594.54 

Number of institutions reporting������������������������������������������������������������������������������������� 6,589 6,891 6,812 7,083 7,357 7,658 8,012

Commercial banks��������������������������������������������������������������������������������������������������� 5,705 5,937 5,876 6,096 6,291 6,530 6,840

Savings institutions ������������������������������������������������������������������������������������������������� 884 954 936 987 1,066 1,128 1,172

Percentage of unprofitable institutions (%)�������������������������������������������������������������������� 6.57 7.91 8.15 10.98 16.22 22.1

Number of problem institutions �������������������������������������������������������������������������������������� 329 515 467 651 813 884 702

Assets of problem institutions (in billions) ��������������������������������������������������������������������� $102 $174 $153 $233 $319 $390 $403

Number of failed institutions������������������������������������������������������������������������������������������� 14 22 24 51 92 157 140

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

* Excludes insured branches of foreign banks (IBAs)

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

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

(dollar figures in millions)  3rd Quarter

2014

2nd Quarter

2014

3rd Quarter

2013

%Change 

13Q3-14Q3

Number of institutions reporting������������������������������������������������������������������������������������� 6,589 6,656 6,891 -4.

Total employees (full-time equivalent)��������������������������������������������������������������������������� 2,048,639 2,060,003 2,080,370 -1.

CONDITION DATA

Total assets��������������������������������������������������������������������������������������������������������������������� $15,349,171 $15,172,440 $14,603,589 5.

Loans secured by real estate���������������������������������������������������������������������������������� 4,136,065 4,123,446 4,053,179 2.

 1-4 Family residential mortgages �������������������������������������������������������������������� 1,838,209 1,844,874 1,842,582 -0.

 Nonfarm nonresidential������������������������������������������������������������������������������������ 1,133,226 1,125,525 1,092,515 3.

 Construction and development 230,614 223,186 206,052 11.

 Home equity lines��������������������������������������������������������������������������������������������� 496,171 499,172 516,674 -4.

Commercial & industrial loans �������������������������������������������������������������������������������� 1,674,122 1,664,072 1,541,635 8.

Loans to individuals������������������������������������������������������������������������������������������������� 1,382,426 1,366,721 1,331,679 3.

 Credit cards ������������������������������������������������������������������������������������������������������ 683,022 678,337 677,074 0.

Farm loans��������������������������������������������������������������������������������������������������������������� 72,966 69,635 67,994 7.

Other loans & leases����������������������������������������������������������������������������������������������� 896,442 887,148 809,401 10.

Less: Unearned income ������������������������������������������������������������������������������������������ 1,906 1,854 1,857 2.

Total loans & leases ������������������������������������������������������������������������������������������������ 8,160,114 8,109,169 7,802,031 4.

Less: Reserve for losses����������������������������������������������������������������������������������������� 125,255 128,190 142,582 -12.

Net loans and leases����������������������������������������������������������������������������������������������� 8,034,859 7,980,978 7,659,449 4.

Securities����������������������������������������������������������������������������������������������������������������� 3,166,150 3,113,091 2,957,632 7.

Other real estate owned������������������������������������������������������������������������������������������ 24,890 27,892 31,819 -21.

Goodwill and other intangibles ������������������������������������������������������������������������������� 363,944 365,590 367,118 -0.

All other assets�������������������������������������������������������������������������������������������������������� 3,759,328 3,684,889 3,587,570 4.

Total liabilities and capital ���������������������������������������������������������������������������������������������� 15,349,171 15,172,440 14,603,589 5.

Deposits������������������������������������������������������������������������������������������������������������������� 11,596,581 11,490,263 11,028,278 5.

 Domestic office deposits���������������������������������������������������������������������������������� 10,172,703 10,058,721 9,599,748 6.

 Foreign office deposits������������������������������������������������������������������������������������� 1,423,878 1,431,542 1,428,531 -0.

Other borrowed funds ��������������������������������������������������������������������������������������������� 1,393,682 1,382,342 1,315,650 5.

Subordinated debt��������������������������������������������������������������������������������������������������� 97,389 97,802 108,673 -10.

All other liabilities ���������������������������������������������������������������������������������������������������� 533,711 486,019 513,739 3.

Total equity capital (includes minority interests)���������������������������������������������������� 1,727,807 1,716,014 1,637,248 5.

 Bank equity capital������������������������������������������������������������������������������������������� 1,719,382 1,707,268 1,622,431 6.

Loans and leases 30-89 days past due������������������������������������������������������������������������� 66,250 65,700 73,090 -9.

Noncurrent loans and leases ����������������������������������������������������������������������������������������� 171,921 181,577 221,201 -22.

Restructured loans and leases �������������������������������������������������������������������������������������� 89,211 94,110 100,512 -11.

Mortgage-backed securities ������������������������������������������������������������������������������������������ 1,718,418 1,716,668 1,668,572 3.

Earning assets���������������������������������������������������������������������������������������������������������������� 13,695,240 13,524,176 12,936,612 5.

FHLB Advances�������������������������������������������������������������������������������������������������������������� 443,175 437,480 373,052 18.

Unused loan commitments��������������������������������������������������������������������������������������������� 6,434,391 6,326,985 6,126,180 5.

Trust assets��������������������������������������������������������������������������������������������������������������������� 18,175,602 18,342,151 19,034,601 -4.

Assets securitized and sold ������������������������������������������������������������������������������������������� 967,830 965,737 761,133 27.

Notional amount of derivatives��������������������������������������������������������������������������������������� 242,940,302 239,190,963 241,599,691 0.

INCOME DATA

First Three 

Quarters 2014

First Three 

Quarters 2013 %Change

3rd Quarter 

2014

3rd Quarter 

2013

%Change 

13Q3-14Q3

Total interest income ������������������������������������������������������������������� $351,532 $352,202 -0.2 $118,781 $117,579 1

Total interest expense ����������������������������������������������������������������� 35,661 40,855 -12.7 11,846 13,060 -9

Net interest income �������������������������������������������������������������� 315,871 311,347 1.5 106,935 104,519 2

Provision for loan and lease losses �������������������������������������������� 21,540 25,150 -14.4 7,194 5,805 23

Total noninterest income������������������������������������������������������������� 187,268 192,559 -2.8 64,338 58,913 9

Total noninterest expense ����������������������������������������������������������� 314,950 314,635 0.1 108,511 106,486 1

Securities gains (losses)������������������������������������������������������������� 2,347 3,980 -41.0 755 543 39

Applicable income taxes ������������������������������������������������������������� 52,444 53,029 -1.1 17,400 15,731 10

Extraordinary gains, net�������������������������������������������������������������� -116 167 N/M -112 259 N/M

Total net income (includes minority interests)��������������������� 116,436 115,239 1.0 38,811 36,212 7

 Bank net income������������������������������������������������������������ 115,955 114,674 1.1 38,700 36,074 7

Net charge-offs���������������������������������������������������������������������������� 29,658 41,565 -28.7 9,234 11,683 -21

Cash dividends ���������������������������������������������������������������������������� 67,150 58,150 15.5 25,505 22,863 11

Retained earnings ����������������������������������������������������������������������� 48,805 56,524 -13.7 13,195 13,212 -0

Net operating income����������������������������������������������������������� 114,875 112,230 2.4 38,367 35,593 7

N/M - Not Meaningful
FDIC Quarterly 6 2014, Volume 8, No. 4

TABLE III-A. Third Quarter 2014, All FDIC-Insured Institutions

Asset Concentration Groups*

THIRD QUARTER

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting����������������������� 6,589 16 3 1,501 3,285 570 50 371 728 65

Commercial banks������������������������������������� 5,705 13 3 1,482 2,967 170 40 334 640 56

Savings institutions ����������������������������������� 884 3 0 19 318 400 10 37 88 9

Total assets (in billions)������������������������������������ $15,349.2 $605.5 $3,691.3 $254.1 $5,186.5 $435.5 $167.5 $60.5 $128.

Commercial banks������������������������������������� 14,290.1 516.1 3,691.3 248.6 4,794.2 143.0 82.6 55.6 108

Savings institutions ����������������������������������� 1,059.1 89.4 0.0 5.5 392.3 292.4 84.9 4.8 

Total deposits (in billions)��������������������������������� 11,596.6 339.5 2,583.6 209.4 4,019.7 320.8 140.5 49.2 107

Commercial banks������������������������������������� 10,789.0 277.0 2,583.6 206.2 3,732.9 107.5 69.6 45.7 91

Savings institutions ����������������������������������� 807.6 62.6 0.0 3.2 286.8 213.3 70.8 3.5 

Bank net income (in millions) ��������������������������� 38,700 4,674 7,273 811 12,217 921 494 321 295 11,695

Commercial banks������������������������������������� 35,618 3,612 7,273 781 11,410 455 282 189 266 11,350

Savings institutions ����������������������������������� 3,082 1,062 0 30 807 466 212 132 29 345

Performance Ratios (annualized, %)

Yield on earning assets������������������������������������ 3.49 10.27 2.77 4.21 3.82 3.40 4.06 3.11

Cost of funding earning assets ������������������������ 0.35 0.69 0.36 0.49 0.40 0.68 0.47 0.37

Net interest margin������������������������������������ 3.14 9.58 2.42 3.72 3.42 2.72 3.59 2.74

Noninterest income to assets��������������������������� 1.69 4.11 1.85 0.66 1.27 0.97 1.51 5.32

Noninterest expense to assets������������������������� 2.85 5.82 2.66 2.51 2.89 2.31 2.68 4.85

Loan and lease loss provision to assets���������� 0.19 2.27 0.11 0.12 0.12 0.03 0.42 0.08

Net operating income to assets ����������������������� 1.01 3.09 0.79 1.27 0.95 0.80 1.18 2.10

Pretax return on assets ������������������������������������ 1.47 4.88 1.17 1.50 1.34 1.23 1.85 2.92

Return on assets����������������������������������������������� 1.02 3.10 0.79 1.28 0.95 0.83 1.18 2.13

Return on equity ����������������������������������������������� 9.04 21.01 8.29 11.32 7.91 6.92 11.98 14.98

Net charge-offs to loans and leases���������������� 0.45 2.62 0.68 0.09 0.25 0.15 0.57 0.30

Loan and lease loss provision to 

net charge-offs���������������������������������������������� 77.91 110.76 46.50 206.52 68.92 34.17 105.57 97.59 8

Efficiency ratio �������������������������������������������������� 61.72 43.67 66.71 60.67 63.84 65.05 53.40 61.78 7

% of unprofitable institutions���������������������������� 6.43 0.00 0.00 2.60 7.06 9.47 0.00 12.67

% of institutions with earnings gains���������������� 62.89 68.75 66.67 63.56 66.73 54.56 66.00 52.29 5

Structural Changes

New reporters�������������������������������������������� 0 0 0 0 0 0 0 0 0 0

Institutions absorbed by mergers ������������� 64 0 0 13 46 1 0 0 2 2

Failed institutions �������������������������������������� 2 0 0 0 2 0 0 0 0 0

PRIOR THIRD QUARTERS

(The way it was...)

Return on assets (%)��������������������������������2013 1.00 3.38 0.52 1.24 0.99 0.92 1.04 1.98

��������������������������������������2011 1.03 3.04 1.07 1.28 0.77 0.76 2.08 2.12

������������������������������������� 2009 0.06 0.35 -0.04 0.94 -0.32 0.26 0.20 1.03

Net charge-offs to loans & leases (%) �����2013 0.60 2.91 0.86 0.09 0.35 0.30 0.68 0.46

��������������������������������������2011 1.46 5.07 1.68 0.41 1.14 0.77 1.56 0.27

������������������������������������� 2009 2.72 10.67 3.18 0.60 2.14 1.59 2.64 0.80

* See Table V-A (page 10) for explanations

Note: Blue font identifies data that are also presented in the prior quarters’ data at the bottom of the table
FDIC Quarterly 7 2014, Volume 8, No. 4

Quarterly Banking Profile

TABLE III-A. Third Quarter 2014, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

THIRD QUARTER

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting����������������������������� 6,589 1,940 3,966 575 108 816 823 1,427 1,614 1,387 522

Commercial banks������������������������������������������� 5,705 1,710 3,440 463 92 454 744 1,190 1,545 1,295 477

Savings institutions ����������������������������������������� 884 230 526 112 16 362 79 237 69 92 45

Total assets (in billions)������������������������������������������ $15,349.2 $114.2 $1,227.5 $1,531.4 $12,476.1 $3,045.0 $3,134.3 $3,503.2 $3,363.9 $884

Commercial banks������������������������������������������� 14,290.1 100.9 1,040.1 1,240.1 11,909.0 2,582.0 3,048.3 3,393.3 3,302.4 77

Savings institutions ����������������������������������������� 1,059.1 13.3 187.4 291.3 567.1 463.0 85.9 110.0 61.5 

Total deposits (in billions)��������������������������������������� 11,596.6 96.1 1,021.5 1,192.4 9,286.6 2,253.1 2,429.4 2,552.0 2,528.2 73

Commercial banks������������������������������������������� 10,789.0 85.7 872.6 977.0 8,853.7 1,916.8 2,365.6 2,469.3 2,480.5 

Savings institutions ����������������������������������������� 807.6 10.4 148.9 215.4 432.9 336.3 63.8 82.7 47.7

Bank net income (in millions) ��������������������������������� 38,700 253 3,168 4,264 31,015 6,577 7,148 7,204 9,512 2,594 5,665

Commercial banks������������������������������������������� 35,618 223 2,739 3,675 28,982 5,808 6,947 6,941 9,402 2,240 4,280

Savings institutions ����������������������������������������� 3,082 30 430 589 2,033 769 201 263 110 354 1,385

Performance Ratios (annualized, %)

Yield on earning assets������������������������������������������ 3.49 4.18 4.24 4.22 3.32 3.74 3.40 2.75 3.7

Cost of funding earning assets ������������������������������ 0.35 0.48 0.50 0.44 0.32 0.41 0.28 0.27 0.4

Net interest margin������������������������������������������ 3.14 3.71 3.74 3.78 3.00 3.32 3.12 2.48 3.3

Noninterest income to assets��������������������������������� 1.69 1.14 1.12 1.30 1.80 1.54 1.66 1.87 1.5

Noninterest expense to assets������������������������������� 2.85 3.39 3.17 3.04 2.79 2.86 3.03 2.75 2.6

Loan and lease loss provision to assets���������������� 0.19 0.12 0.12 0.15 0.20 0.33 0.17 0.08 0.1

Net operating income to assets ����������������������������� 1.01 0.87 1.02 1.13 0.99 0.86 0.89 0.83 1.1

Pretax return on assets ������������������������������������������ 1.47 1.05 1.31 1.55 1.48 1.32 1.26 1.23 1.6

Return on assets����������������������������������������������������� 1.02 0.89 1.04 1.11 1.00 0.86 0.93 0.83 1.1

Return on equity ����������������������������������������������������� 9.04 7.23 9.31 9.32 8.99 7.22 7.54 8.34 11.01 

Net charge-offs to loans and leases���������������������� 0.45 0.22 0.18 0.24 0.53 0.68 0.35 0.32 0.5

Loan and lease loss provision to 

net charge-offs���������������������������������������������������� 77.91 96.16 100.41 94.90 75.59 91.66 84.59 58.00 53.00 10

Efficiency ratio �������������������������������������������������������� 61.72 74.39 68.97 62.22 60.80 58.91 67.56 67.05 58.87 

% of unprofitable institutions���������������������������������� 6.43 11.49 4.69 2.43 0.93 8.82 9.72 7.29 4.3

% of institutions with earnings gains���������������������� 62.89 56.08 65.18 68.70 70.37 62.38 62.33 60.97 62.52 

Structural Changes

New reporters�������������������������������������������������� 0 0 0 0 0 0 0 0 0 0 0

Institutions absorbed by mergers ������������������� 64 25 35 4 0 7 12 15 13 13 4

Failed institutions �������������������������������������������� 2 1 1 0 0 0 1 1 0 0 0

PRIOR THIRD QUARTERS

(The way it was...)

Return on assets (%)��������������������������������������2013 1.00 0.74 0.92 1.17 0.99 1.06 0.94 0.53 1.2

��������������������������������������������2011 1.03 0.61 0.64 0.91 1.10 0.97 0.76 0.96 1.2

������������������������������������������� 2009 0.06 0.11 -0.10 -0.54 0.17 0.05 -0.16 0.24 0.85

Net charge-offs to loans & leases (%) �����������2013 0.60 0.28 0.34 0.31 0.68 0.81 0.55 0.46 0.7

��������������������������������������������2011 1.46 0.63 0.92 1.00 1.63 1.79 1.70 1.02 1.6

������������������������������������������� 2009 2.72 0.88 1.27 2.17 3.10 3.07 2.70 2.59 2.5

* See Table V-A (page 11) for explanations

Note: Blue font identifies data that are also presented in the prior quarters’ data at the bottom of the table
FDIC Quarterly 8 2014, Volume 8, No. 4

TABLE IV-A. First Three Quarters 2014, All FDIC-Insured Institutions

Asset Concentration Groups*

FIRST THREE QUARTERS

(The way it is...)

All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 Billion

All Other 

>$1 Billion

Number of institutions reporting����������������������� 6,589 16 3 1,501 3,285 570 50 371 728 65

Commercial banks������������������������������������� 5,705 13 3 1,482 2,967 170 40 334 640 56

Savings institutions ����������������������������������� 884 3 0 19 318 400 10 37 88 9

Total assets (in billions)������������������������������������ $15,349.2 $605.5 $3,691.3 $254.1 $5,186.5 $435.5 $167.5 $60.5 $128.

Commercial banks������������������������������������� 14,290.1 516.1 3,691.3 248.6 4,794.2 143.0 82.6 55.6 108

Savings institutions ����������������������������������� 1,059.1 89.4 0.0 5.5 392.3 292.4 84.9 4.8 

Total deposits (in billions)��������������������������������� 11,596.6 339.5 2,583.6 209.4 4,019.7 320.8 140.5 49.2 107

Commercial banks������������������������������������� 10,789.0 277.0 2,583.6 206.2 3,732.9 107.5 69.6 45.7 91

Savings institutions ����������������������������������� 807.6 62.6 0.0 3.2 286.8 213.3 70.8 3.5 

Bank net income (in millions) ��������������������������� 115,955 14,332 22,304 2,258 36,650 2,886 1,362 932 858 34,373

Commercial banks������������������������������������� 107,048 11,375 22,304 2,177 34,335 1,458 727 537 779 33,357

Savings institutions ����������������������������������� 8,907 2,957 0 82 2,315 1,429 635 395 79 1,015

Performance Ratios (annualized, %)

Yield on earning assets������������������������������������ 3.51 10.10 2.79 4.13 3.84 3.40 3.95 3.11

Cost of funding earning assets ������������������������ 0.36 0.67 0.38 0.49 0.40 0.67 0.47 0.37

Net interest margin������������������������������������ 3.15 9.43 2.41 3.63 3.44 2.73 3.47 2.74

Noninterest income to assets��������������������������� 1.66 4.28 1.75 0.61 1.26 0.95 1.36 5.10

Noninterest expense to assets������������������������� 2.80 5.79 2.55 2.48 2.86 2.25 2.53 4.74

Loan and lease loss provision to assets���������� 0.19 2.13 0.12 0.10 0.13 0.04 0.45 0.06

Net operating income to assets ����������������������� 1.02 3.20 0.82 1.18 0.97 0.83 1.10 2.05

Pretax return on assets ������������������������������������ 1.50 5.07 1.18 1.41 1.37 1.27 1.72 2.84

Return on assets����������������������������������������������� 1.03 3.20 0.81 1.20 0.97 0.86 1.10 2.08

Return on equity ����������������������������������������������� 9.19 21.69 8.62 10.76 8.11 7.27 11.31 14.97

Net charge-offs to loans and leases���������������� 0.49 2.86 0.73 0.09 0.26 0.19 0.62 0.24

Loan and lease loss provision to 

net charge-offs���������������������������������������������� 72.63 95.39 46.68 179.24 72.66 37.42 103.26 83.66 8

Efficiency ratio �������������������������������������������������� 61.34 43.20 65.50 62.05 64.12 63.41 53.00 62.06 7

% of unprofitable institutions���������������������������� 6.57 0.00 0.00 2.80 7.25 9.47 2.00 10.51

% of institutions with earnings gains���������������� 60.07 68.75 66.67 60.96 63.29 50.53 46.00 54.45 5

Condition Ratios (%)

Earning assets to total assets �������������������������� 89.22 92.51 86.70 92.77 89.98 93.91 95.57 90.98 9

Loss allowance to:

Loans and leases �������������������������������������� 1.53 3.31 1.96 1.45 1.35 1.20 1.14 1.87

Noncurrent loans and leases �������������������� 72.86 318.98 80.17 141.44 90.22 38.49 79.31 114.00 7

Noncurrent assets plus

other real estate owned to assets ���������������� 1.29 0.82 0.90 0.88 1.30 2.27 1.10 0.75

Equity capital ratio�������������������������������������������� 11.20 14.89 9.52 11.40 11.97 12.02 9.96 14.31 1

Core capital (leverage) ratio ���������������������������� 9.52 12.74 8.35 10.62 10.17 11.13 9.80 13.65 

Tier 1 risk-based capital ratio��������������������������� 13.01 13.48 12.40 14.77 12.78 21.11 13.89 31.34 2

Total risk-based capital ratio ���������������������������� 14.44 15.70 13.06 15.89 14.35 22.16 14.70 32.34 2

Net loans and leases to deposits��������������������� 69.29 135.93 48.37 76.67 86.68 83.48 84.01 34.12 6

Net loans to total assets ���������������������������������� 52.35 76.23 33.85 63.19 67.18 61.49 70.44 27.77 5

Domestic deposits to total assets �������������������� 66.28 53.33 44.25 82.41 76.65 73.65 83.84 80.35 8

Structural Changes

New reporters�������������������������������������������� 0 0 0 0 0 0 0 0 0 0

Institutions absorbed by mergers ������������� 199 0 0 37 139 6 0 2 7 8

Failed institutions �������������������������������������� 14 0 0 1 9 2 0 0 2 0

PRIOR FIRST THREE QUARTERS

(The way it was...)

Number of institutions ������������������������������2013 6,891 17 4 1,536 3,433 597 47 400 791 66

��������������������������������������2011 7,437 18 5 1,552 3,854 714 71 363 801 59

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

Total assets (in billions)����������������������������2013 $14,603.6 $596.3 $3,729.4 $243.9 $4,773.7 $554.0 $149.3 $63.9 $137.

��������������������������������������2011 13,811.9 532.0 3,665.3 208.5 4,170.5 798.3 98.8 54.0 136

������������������������������������� 2009 13,226.0 480.2 3,183.4 177.7 5,183.9 852.0 95.8 37.8 102

Return on assets (%)��������������������������������2013 1.06 3.26 0.83 1.19 0.91 0.98 1.28 1.74

��������������������������������������2011 0.92 3.62 0.81 1.14 0.71 0.60 1.75 1.80

������������������������������������� 2009 -0.11 -6.25 0.00 0.91 -0.23 0.47 0.22 0.64

Net charge-offs to loans & leases (%) �����2013 0.72 3.21 1.03 0.11 0.44 0.37 0.77 0.61

��������������������������������������2011 1.61 5.58 2.07 0.36 1.21 0.90 1.78 0.48

������������������������������������� 2009 2.38 9.93 2.90 0.52 1.77 1.26 2.64 0.81

Noncurrent assets plus 

OREO to assets (%)������������������������������2013 1.75 0.90 1.13 0.98 1.81 2.16 0.66 0.95

��������������������������������������2011 2.66 1.41 1.59 1.59 3.19 2.68 1.13 0.99

������������������������������������� 2009 3.09 2.18 2.64 1.59 3.71 3.17 1.25 0.60

Equity capital ratio (%)������������������������������2013 11.11 14.89 8.80 11.01 11.81 11.40 9.64 13.71 1

��������������������������������������2011 11.30 15.79 8.81 11.50 11.93 10.61 9.86 15.50 1

������������������������������������� 2009 10.76 22.08 8.45 11.32 10.96 9.30 10.87 17.58 1

* See Table V-A (page 10) for explanations

Note: Blue font identifies data that are also presented in the prior quarters’ data at the bottom of the table
FDIC Quarterly 9 2014, Volume 8, No. 4

Quarterly Banking Profile

TABLE IV-A. First Three Quarters 2014, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FIRST THREE QUARTERS

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting����������������������������� 6,589 1,940 3,966 575 108 816 823 1,427 1,614 1,387 522

Commercial banks������������������������������������������� 5,705 1,710 3,440 463 92 454 744 1,190 1,545 1,295 477

Savings institutions ����������������������������������������� 884 230 526 112 16 362 79 237 69 92 45

Total assets (in billions)������������������������������������������ $15,349.2 $114.2 $1,227.5 $1,531.4 $12,476.1 $3,045.0 $3,134.3 $3,503.2 $3,363.9 $884

Commercial banks������������������������������������������� 14,290.1 100.9 1,040.1 1,240.1 11,909.0 2,582.0 3,048.3 3,393.3 3,302.4 77

Savings institutions ����������������������������������������� 1,059.1 13.3 187.4 291.3 567.1 463.0 85.9 110.0 61.5 

Total deposits (in billions)��������������������������������������� 11,596.6 96.1 1,021.5 1,192.4 9,286.6 2,253.1 2,429.4 2,552.0 2,528.2 73

Commercial banks������������������������������������������� 10,789.0 85.7 872.6 977.0 8,853.7 1,916.8 2,365.6 2,469.3 2,480.5 

Savings institutions ����������������������������������������� 807.6 10.4 148.9 215.4 432.9 336.3 63.8 82.7 47.7

Bank net income (in millions) ��������������������������������� 115,955 717 8,956 12,183 94,099 21,193 20,745 23,010 28,054 7,579 15,374

Commercial banks������������������������������������������� 107,048 636 7,753 10,400 88,259 18,926 20,199 22,242 27,678 6,548 11,457

Savings institutions ����������������������������������������� 8,907 81 1,203 1,783 5,840 2,267 546 768 376 1,031 3,917

Performance Ratios (annualized, %)

Yield on earning assets������������������������������������������ 3.51 4.12 4.19 4.21 3.34 3.77 3.43 2.78 3.7

Cost of funding earning assets ������������������������������ 0.36 0.48 0.50 0.43 0.33 0.41 0.29 0.29 0.4

Net interest margin������������������������������������������ 3.15 3.64 3.69 3.78 3.01 3.36 3.14 2.49 3.3

Noninterest income to assets��������������������������������� 1.66 1.10 1.08 1.22 1.78 1.53 1.65 1.86 1.5

Noninterest expense to assets������������������������������� 2.80 3.37 3.14 3.01 2.73 2.79 3.00 2.69 2.6

Loan and lease loss provision to assets���������������� 0.19 0.11 0.12 0.16 0.20 0.33 0.17 0.10 0.1

Net operating income to assets ����������������������������� 1.02 0.82 0.97 1.07 1.02 0.94 0.87 0.89 1.1

Pretax return on assets ������������������������������������������ 1.50 0.99 1.25 1.51 1.52 1.43 1.29 1.27 1.6

Return on assets����������������������������������������������������� 1.03 0.84 0.99 1.08 1.03 0.94 0.91 0.89 1.1

Return on equity ����������������������������������������������������� 9.19 6.94 9.00 9.05 9.25 7.87 7.40 9.10 10.95 

Net charge-offs to loans and leases���������������������� 0.49 0.21 0.20 0.28 0.57 0.73 0.40 0.35 0.6

Loan and lease loss provision to 

net charge-offs���������������������������������������������������� 72.63 92.30 95.62 85.45 70.52 85.60 72.18 64.53 48.35 9

Efficiency ratio �������������������������������������������������������� 61.34 75.60 69.72 63.11 60.14 58.78 67.30 65.77 57.83 

% of unprofitable institutions���������������������������������� 6.57 12.06 4.66 2.26 0.93 7.97 10.33 7.92 3.9

% of institutions with earnings gains���������������������� 60.07 55.41 61.47 65.57 62.96 57.35 62.09 54.94 62.64 

Condition Ratios (%)

Earning assets to total assets ��������������������������������� 89.22 91.83 92.43 91.64 88.59 89.40 88.25 88.53 88.67 

Loss allowance to:

Loans and leases ��������������������������������������������� 1.53 1.59 1.50 1.42 1.56 1.56 1.44 1.65 1.6

Noncurrent loans and leases ��������������������������� 72.86 95.48 98.65 82.63 69.25 103.15 53.80 71.45 61.50 9

Noncurrent assets plus

other real estate owned to assets ����������������������� 1.29 1.57 1.54 1.50 1.24 0.92 1.71 1.19 1.6

Equity capital ratio��������������������������������������������������� 11.20 12.35 11.19 11.98 11.10 12.02 12.11 9.93 10.31 

Core capital (leverage) ratio ����������������������������������� 9.52 12.05 10.81 10.60 9.23 9.85 9.46 8.78 9.07 

Tier 1 risk-based capital ratio���������������������������������� 13.01 19.65 15.83 14.60 12.49 13.74 12.74 12.06 12.35 

Total risk-based capital ratio ����������������������������������� 14.44 20.74 16.98 15.73 13.99 15.46 14.41 13.10 13.88 

Net loans and leases to deposits���������������������������� 69.29 67.23 76.72 84.62 66.52 71.96 71.48 61.00 67.92 

Net loans to total assets ����������������������������������������� 52.35 56.59 63.84 65.89 49.52 53.25 55.40 44.44 51.05 

Domestic deposits to total assets ��������������������������� 66.28 84.17 83.15 77.49 63.08 65.47 74.69 61.25 55.81 

Structural Changes

New reporters�������������������������������������������������� 0 0 0 0 0 0 0 0 0 0 0

Institutions absorbed by mergers ������������������� 199 69 110 18 2 18 38 40 43 40 20

Failed institutions �������������������������������������������� 14 8 6 0 0 2 4 5 0 2 1

PRIOR FIRST THREE QUARTERS

(The way it was...)

Number of institutions ������������������������������������2013 6,891 2,116 4,107 561 107 854 875 1,480 1,675 1,454 553

��������������������������������������������2011 7,437 2,491 4,279 561 106 924 974 1,563 1,792 1,555 629

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

Total assets (in billions)����������������������������������2013 $14,603.6 $123.5 $1,245.5 $1,453.1 $11,781.5 $2,876.9 $2,981.8 $3,398.6 $3,166.6 $864

��������������������������������������������2011 13,811.9 142.9 1,273.4 1,425.0 10,970.6 2,842.2 2,954.3 3,169.9 2,901.9 80

������������������������������������������� 2009 13,226.0 160.5 1,345.7 1,497.5 10,222.3 2,481.0 3,449.9 3,106.2 1,077.7 75

Return on assets (%)��������������������������������������2013 1.06 0.76 0.92 1.18 1.06 0.82 1.03 0.91 1.2

��������������������������������������������2011 0.92 0.54 0.59 0.85 0.97 1.07 0.61 0.81 0.9

������������������������������������������� 2009 -0.11 0.19 0.05 -0.37 -0.10 -1.23 0.10 0.22 0.73

Net charge-offs to loans & leases (%) �����������2013 0.72 0.30 0.35 0.38 0.82 0.97 0.69 0.50 0.9

��������������������������������������������2011 1.61 0.58 0.85 1.17 1.81 1.97 1.73 1.19 1.9

������������������������������������������� 2009 2.38 0.78 1.01 1.83 2.74 2.73 2.18 2.15 2.4

Noncurrent assets plus 

OREO to assets (%)������������������������������������2013 1.75 1.83 1.98 1.96 1.69 1.20 2.48 1.54 2.0

��������������������������������������������2011 2.66 2.39 3.18 3.26 2.52 1.79 3.81 2.40 2.7

������������������������������������������� 2009 3.09 2.13 3.14 3.52 3.03 1.92 3.52 3.19 3.4

Equity capital ratio (%)������������������������������������2013 11.11 11.82 10.83 11.76 11.05 12.00 12.30 9.13 10.64 

��������������������������������������������2011 11.30 11.98 10.80 11.85 11.27 12.55 12.18 8.62 11.18 

������������������������������������������� 2009 10.76 12.41 10.11 10.75 10.82 12.27 11.57 8.68 10.85 

* See Table V-A (page 11) for explanations

Note: Blue font identifies data that are also presented in the prior quarters’ data at the bottom of the table
FDIC Quarterly 10 2014, Volume 8, No. 4

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

Asset Concentration Groups*

September 30, 2014 All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 

Billion

All Other 

>$1 

Billion

Percent of Loans 30-89 Days Past Due

All loans secured by real estate ��������������������������������������� 1.01 0.03 1.54 0.65 0.63 1.00 0.77 1.34

Construction and development��������������������������������� 0.50 0.00 0.54 0.82 0.46 0.51 0.44 0.92

Nonfarm nonresidential��������������������������������������������� 0.36 0.00 0.19 0.61 0.36 0.50 2.20 0.96

Multifamily residential real estate ����������������������������� 0.21 0.00 0.08 0.18 0.24 0.28 0.90 1.34

Home equity loans����������������������������������������������������� 0.68 0.67 0.99 0.36 0.56 0.65 0.49 0.48

Other 1-4 family residential��������������������������������������� 1.74 0.02 2.54 1.21 1.13 1.11 0.72 1.86

Commercial and industrial loans ������������������������������������� 0.26 0.84 0.33 0.90 0.25 0.56 0.10 0.98

Loans to individuals���������������������������������������������������������� 1.33 1.18 1.35 1.44 1.12 1.06 0.78 1.55

Credit card loans ������������������������������������������������������� 1.19 1.18 1.22 1.15 1.20 1.57 0.69 1.43

Other loans to individuals ����������������������������������������� 1.46 1.23 1.58 1.47 1.11 1.01 0.80 1.56

All other loans and leases (including farm) ��������������������� 0.19 0.32 0.22 0.33 0.23 0.10 0.24 0.62

Total loans and leases������������������������������������������������������ 0.81 1.14 0.95 0.63 0.55 0.94 0.73 1.27

Percent of Loans Noncurrent**

All real estate loans ���������������������������������������������������������� 3.57 0.55 5.65 1.24 2.07 3.44 3.78 1.91

Construction and development.................................. 2.55 0

Nonfarm nonresidential��������������������������������������������� 1.48 3.30 0.96 1.79 1.41 1.72 11.17 1.79

Multifamily residential real estate ����������������������������� 0.50 0.00 0.35 0.63 0.54 0.83 2.07 1.40

Home equity loans����������������������������������������������������� 2.62 0.00 3.71 1.07 1.43 2.02 2.72 0.78

Other 1-4 family residential��������������������������������������� 5.93 0.47 9.53 1.24 3.31 3.83 2.98 1.89

Commercial and industrial loans ������������������������������������� 0.55 0.74 0.52 1.34 0.63 1.11 0.60 1.50

Loans to individuals���������������������������������������������������������� 0.93 1.07 1.07 0.55 0.80 0.57 0.77 0.63

Credit card loans ������������������������������������������������������� 1.10 1.09 1.08 0.26 1.16 1.20 1.16 0.68

Other loans to individuals ����������������������������������������� 0.76 0.73 1.05 0.57 0.75 0.50 0.65 0.63

All other loans and leases (including farm) ��������������������� 0.23 0.27 0.26 0.41 0.29 0.14 0.09 0.37

Total loans and leases������������������������������������������������������ 2.11 1.04 2.44 1.02 1.50 3.12 1.44 1.64

Percent of Loans Charged-Off (net, YTD)

All real estate loans ���������������������������������������������������������� 0.21 0.04 0.33 0.06 0.20 0.18 0.34 0.12

Construction and development��������������������������������� 0.03 0.00 -0.23 0.00 0.16 0.23 0.15 0.30 

Nonfarm nonresidential��������������������������������������������� 0.10 0.00 -0.03 0.08 0.14 0.16 -0.04 0.12 

Multifamily residential real estate ����������������������������� 0.02 0.00 -0.01 0.08 0.04 0.10 -0.04 -0.85 

Home equity loans����������������������������������������������������� 0.60 0.00 0.67 0.26 0.41 0.58 0.96 0.05

Other 1-4 family residential��������������������������������������� 0.21 0.04 0.32 0.10 0.28 0.15 0.16 0.15

Commercial and industrial loans ������������������������������������� 0.23 2.40 0.16 0.21 0.21 0.29 0.09 0.44

Loans to individuals���������������������������������������������������������� 1.96 2.92 2.84 0.37 0.93 0.93 0.77 0.47

Credit card loans ������������������������������������������������������� 3.18 2.98 3.73 0.77 3.56 3.70 2.08 1.76

Other loans to individuals ����������������������������������������� 0.75 1.39 1.30 0.34 0.54 0.62 0.36 0.35

All other loans and leases (including farm) ��������������������� 0.09 0.00 0.09 0.00 0.16 0.07 0.10 0.82

Total loans and leases������������������������������������������������������ 0.49 2.86 0.73 0.09 0.26 0.19 0.62 0.24

Loans Outstanding (in billions)

All real estate loans ���������������������������������������������������������� $4,136.1 $0.3 $465.7 $97.0 $2,159.9 $242.4 $27.5 $12.2 $53.

Construction and development��������������������������������� 230.6 0.0 6.2 5.2 171.7 4.7 0.4 0.

Nonfarm nonresidential��������������������������������������������� 1,133.2 0.0 34.5 26.3 822.8 20.0 1.8 4.3 

Multifamily residential real estate ����������������������������� 289.0 0.0 51.2 2.8 192.2 5.5 0.3 0.

Home equity loans����������������������������������������������������� 496.2 0.0 80.6 1.8 210.4 14.0 6.4 0.4

Other 1-4 family residential��������������������������������������� 1,838.2 0.3 234.5 25.0 727.4 197.4 18.5 5.6 

Commercial and industrial loans ������������������������������������� 1,674.1 37.5 270.9 19.9 826.8 6.6 6.5 2.2

Loans to individuals���������������������������������������������������������� 1,382.4 435.8 248.1 6.5 287.8 6.4 83.0 1.7

Credit card loans ������������������������������������������������������� 683.0 419.2 155.1 0.5 37.0 0.6 19.2 0.

Other loans to individuals ����������������������������������������� 699.4 16.7 93.0 6.0 250.8 5.8 63.8 1.6

All other loans and leases (including farm) ��������������������� 969.4 3.7 290.4 39.6 258.8 15.7 2.4 1.0

Total loans and leases (plus unearned income)�������������� 8,162.0 477.3 1,275.1 163.0 3,533.3 271.1 119.4 17.1 70

Memo: Other Real Estate Owned (in millions)

All other real estate owned����������������������������������������������� 24,890.5 0.2 1,278.0 542.3 14,204.1 1,358.6 124.8 171.6 552

Construction and development��������������������������������� 6,891.5 0.0 3.0 195.6 5,450.9 162.9 16.0 69.6 1

Nonfarm nonresidential��������������������������������������������� 5,653.2 0.0 62.0 189.0 4,327.8 101.0 34.6 56.3 1

Multifamily residential real estate ����������������������������� 506.6 0.0 1.0 21.9 402.7 10.0 0.1 7.

1-4 family residential ������������������������������������������������� 6,098.7 0.2 571.0 93.0 3,315.1 400.7 66.1 35.5 185

Farmland�������������������������������������������������������������������� 280.5 0.0 0.0 42.6 209.6 1.6 0.0 2.

GNMA properties������������������������������������������������������� 5,410.8 0.0 594.0 0.3 497.7 682.2 8.1 0.0 0

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

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

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

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

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

exceed 25 percent of total assets

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

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

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

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

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

concentrations

** 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 2014, Volume 8, No. 4

Quarterly Banking Profile

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

Asset Size Distribution Geographic Regions*

September 30, 2014 All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

Than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ������������������������������ 1.01 1.29 0.71 0.67 1.16 0.67 1.19 1.06 1.4

Construction and development������������������������ 0.50 1.12 0.60 0.53 0.42 0.56 0.49 0.44 0.5

Nonfarm nonresidential������������������������������������ 0.36 1.08 0.54 0.35 0.27 0.39 0.34 0.42 0.3

Multifamily residential real estate �������������������� 0.21 0.70 0.43 0.18 0.17 0.22 0.21 0.18 0.1

Home equity loans�������������������������������������������� 0.68 0.61 0.54 0.51 0.71 0.50 0.75 0.82 0.7

Other 1-4 family residential������������������������������ 1.74 1.77 1.05 1.24 1.95 1.08 1.94 1.76 2.4

Commercial and industrial loans ���������������������������� 0.26 1.23 0.67 0.36 0.21 0.24 0.15 0.36 0.2

Loans to individuals������������������������������������������������� 1.33 1.85 1.68 1.45 1.31 1.09 2.02 1.20 1.4

Credit card loans ���������������������������������������������� 1.19 2.94 1.60 1.91 1.17 0.96 1.84 0.98 1.2

Other loans to individuals �������������������������������� 1.46 1.84 1.68 1.25 1.47 1.44 2.11 1.27 1.5

All other loans and leases (including farm) ������������ 0.19 0.40 0.31 0.26 0.18 0.10 0.12 0.38 0.0

Total loans and leases��������������������������������������������� 0.81 1.20 0.73 0.65 0.84 0.65 0.95 0.82 0.9

Percent of Loans Noncurrent** 

All real estate loans ������������������������������������������������� 3.57 1.87 1.66 2.06 4.43 2.26 4.69 4.06 4.9

Construction and development������������������������ 2.55 3.23 3.08 2.76 2.19 3.17 3.46 2.50 1.9

Nonfarm nonresidential������������������������������������ 1.48 2.25 1.72 1.38 1.42 1.75 1.47 1.75 1.4

Multifamily residential real estate �������������������� 0.50 1.79 1.12 0.57 0.37 0.32 0.58 0.68 0.6

Home equity loans�������������������������������������������� 2.62 1.00 0.83 1.06 2.92 1.90 3.41 2.72 2.7

Other 1-4 family residential������������������������������ 5.93 1.86 1.58 3.30 7.19 3.20 7.27 6.79 8.4

Commercial and industrial loans ���������������������������� 0.55 1.92 1.34 0.98 0.43 0.70 0.42 0.57 0.5

Loans to individuals������������������������������������������������� 0.93 0.87 1.10 0.80 0.93 0.91 1.03 0.82 1.0

Credit card loans ���������������������������������������������� 1.10 0.96 1.01 1.67 1.08 0.94 1.46 0.98 1.1

Other loans to individuals �������������������������������� 0.76 0.86 1.11 0.40 0.77 0.83 0.82 0.77 0.9

All other loans and leases (including farm) ������������ 0.23 0.65 0.46 0.37 0.20 0.33 0.20 0.13 0.2

Total loans and leases��������������������������������������������� 2.11 1.66 1.52 1.72 2.25 1.51 2.67 2.31 2.6

Percent of Loans Charged-Off (net, YTD) 

All real estate loans ������������������������������������������������� 0.21 0.17 0.15 0.16 0.23 0.22 0.25 0.24 0.2

Construction and development������������������������ 0.03 0.30 0.19 0.03 -0.05 0.40 0.20 0.08 -0.52

Nonfarm nonresidential������������������������������������ 0.10 0.21 0.15 0.13 0.07 0.14 0.15 0.16 0.0

Multifamily residential real estate �������������������� 0.02 0.11 0.15 0.06 -0.02 0.00 0.04 0.04 -0.0

Home equity loans�������������������������������������������� 0.60 0.18 0.22 0.27 0.67 0.36 0.82 0.59 0.7

Other 1-4 family residential������������������������������ 0.21 0.19 0.15 0.24 0.21 0.29 0.16 0.23 0.2

Commercial and industrial loans ���������������������������� 0.23 0.36 0.34 0.26 0.21 0.36 0.15 0.23 0.1

Loans to individuals������������������������������������������������� 1.96 0.50 0.69 1.58 2.03 2.28 1.64 1.25 2.6

Credit card loans ���������������������������������������������� 3.18 3.22 3.70 3.46 3.17 2.81 3.44 3.08 3.8

Other loans to individuals �������������������������������� 0.75 0.47 0.48 0.72 0.77 0.81 0.76 0.65 1.1

All other loans and leases (including farm) ������������ 0.09 0.00 0.15 0.17 0.08 0.11 0.05 0.12 0.0

Total loans and leases��������������������������������������������� 0.49 0.21 0.20 0.28 0.57 0.73 0.40 0.35 0.6

Loans Outstanding (in billions) 

All real estate loans ������������������������������������������������� $4,136.1 $45.3 $609.1 $737.7 $2,743.9 $838.0 $901.7 $804.1 $826.5 $3

Construction and development������������������������ 230.6 2.7 51.7 59.7 116.5 43.4 49.7 36.7 34.

Nonfarm nonresidential������������������������������������ 1,133.2 12.2 239.4 294.0 587.6 259.2 232.8 185.6 165.5 

Multifamily residential real estate �������������������� 289.0 1.4 31.8 65.1 190.7 101.6 35.0 77.6 25.

Home equity loans�������������������������������������������� 496.2 1.2 27.5 47.2 420.3 91.0 129.7 124.8 102.

Other 1-4 family residential������������������������������ 1,838.2 20.5 216.7 254.1 1,346.9 338.7 444.9 358.9 407.6 

Commercial and industrial loans ���������������������������� 1,674.1 7.8 104.1 161.8 1,400.4 256.6 401.8 345.3 354.3 

Loans to individuals������������������������������������������������� 1,382.4 4.1 35.7 72.8 1,269.8 392.1 248.8 202.3 296.9

Credit card loans ���������������������������������������������� 683.0 0.0 2.3 23.0 657.7 285.7 81.3 49.5 162.

Other loans to individuals �������������������������������� 699.4 4.1 33.4 49.8 612.1 106.4 167.5 152.8 134.1

All other loans and leases (including farm) ������������ 969.4 8.4 47.1 51.6 862.3 160.8 209.5 231.3 268.

Total loans and leases (plus unearned income)����� 8,162.0 65.7 796.0 1,024.0 6,276.4 1,647.5 1,761.9 1,583.0 1,746.5 

Memo: Other Real Estate Owned (in millions) 

All other real estate owned�������������������������������������� 24,890.5 697.1 6,620.9 5,328.3 12,244.2 3,131.5 6,369.4 4,588.0 6,381.5 2,96

Construction and development������������������������ 6,891.5 233.8 3,007.8 2,038.8 1,611.1 685.1 1,990.1 945.5 1,453.7 1,

Nonfarm nonresidential������������������������������������ 5,653.2 233.1 2,167.4 1,633.2 1,619.4 826.2 1,220.2 1,195.5 1,021.7 

Multifamily residential real estate �������������������� 506.6 25.7 167.7 112.5 200.8 179.1 61.6 98.6 84.

1-4 family residential ���������������������������������������� 6,098.7 187.2 1,137.3 1,084.5 3,689.6 1,167.9 1,601.7 1,405.2 978.0 

Farmland����������������������������������������������������������� 280.5 17.3 139.1 100.7 23.4 19.4 67.8 56.1 42.

GNMA properties���������������������������������������������� 5,410.8 0.1 1.6 358.6 5,050.5 253.8 1,428.0 887.2 2,751.

* Regions:

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

U.S. Virgin Islan

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

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

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

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

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status
FDIC Quarterly 12 2014, Volume 8, No. 4

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

Asset Size Distribution

(dollar figures in millions;

notional amounts unless otherwise indicated)

3rd

Quarter 

2014

2nd

Quarter 

2014

1st 

Quarter 

2014

4th 

Quarter 

2013

3rd 

Quarter 

2013

% Change 

13Q3-

14Q3

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����������������� 1,391 1,407 1,399 1,389 1,424 -2.3 71 833 386 10

Total assets of institutions reporting derivatives ���������� $13,713,227 $13,523,258 $13,250,724 $13,073,466 $12,913,916 6.2 $5,108 $344,375 $1,121,559 $12,242,18

Total deposits of institutions reporting derivatives������� 10,291,118 10,169,544 9,980,762 9,855,694 9,682,692 6.3 4,306 283,395 888,637 9,114,78

Total derivatives������������������������������������������������������������� 242,940,302 239,190,963 231,800,037 237,047,901 241,599,691 0.6 248 19,685 94,423 242,825,94

Derivative Contracts by Underlying Risk Exposure 

Interest rate�������������������������������������������������������������������� 190,894,367 191,551,667 184,416,428 193,079,712 194,272,564 -1.7 247 17,382 87,062 190,789,67

Foreign exchange*��������������������������������������������������������� 37,993,284 33,394,789 32,803,419 29,508,040 31,016,109 22.5 0 2,139 6,303 37,984,84

Equity ����������������������������������������������������������������������������� 2,317,269 2,198,432 2,152,493 2,060,642 2,178,167 6.4 0 73 381 2,316,81

Commodity & other (excluding credit derivatives)�������� 1,327,011 1,214,397 1,263,060 1,208,874 1,339,676 -0.9 1 1 156 1,326,85

Credit������������������������������������������������������������������������������ 10,408,372 10,831,679 11,164,636 11,190,633 12,793,174 -18.6 0 91 520 10,407,76

Total�������������������������������������������������������������������������������� 242,940,302 239,190,963 231,800,037 237,047,901 241,599,691 0.6 248 19,685 94,423 242,825,94

Derivative Contracts by Transaction Type 

Swaps ���������������������������������������������������������������������������� 148,328,645 146,510,078 141,280,789 152,465,179 151,915,064 -2.4 44 7,223 50,254 148,271,12

Futures & forwards �������������������������������������������������������� 45,058,646 45,263,675 42,478,719 40,026,988 40,136,119 12.3 68 6,900 22,592 45,029,08

Purchased options��������������������������������������������������������� 17,991,014 17,296,921 17,199,263 16,122,514 16,902,690 6.4 20 761 5,515 17,984,71

Written options��������������������������������������������������������������� 17,560,650 16,877,396 16,931,243 16,215,033 17,098,677 2.7 115 4,700 15,364 17,540,47

Total�������������������������������������������������������������������������������� 228,938,955 225,948,070 217,890,014 224,829,713 226,052,549 1.3 248 19,584 93,725 228,825,39

Fair Value of Derivative Contracts 

Interest rate contracts���������������������������������������������������� 65,126 72,249 72,732 71,270 64,832 0.5 1 36 118 64,97

Foreign exchange contracts������������������������������������������ 13,334 4,729 5,563 5,991 -10,390 N/M 0 0 14 13,320

Equity contracts������������������������������������������������������������� -657 412 1,548 32 -1,928 N/M 0 3 4 -664

Commodity & other (excluding credit derivatives)�������� 219 965 -893 1,350 1,181 -81.5 0 0 -5 22

Credit derivatives as guarantor������������������������������������� 67,082 92,998 80,869 74,838 27,220 146.4 0 0 0 67,08

Credit derivatives as beneficiary����������������������������������� -62,731 -88,369 -77,438 -71,220 -22,646 N/M 0 0 -25 -62,706

Derivative Contracts by Maturity** 

Interest rate contracts ����������������������������� < 1 year 79,984,475 81,212,198 77,787,391 77,758,364 91,687,405 -12.8 67 4,602 16,664 79,963,14

 ������������������������������������������ 1-5 years 40,334,367 38,531,976 37,365,369 44,157,011 32,673,865 23.4 36 3,493 25,535 40,305,30

 ������������������������������������������ > 5 years 22,393,347 24,201,834 24,024,347 24,628,239 21,497,254 4.2 28 3,959 22,973 22,366,38

Foreign exchange contracts ������������������� < 1 year 22,803,490 20,746,687 20,017,155 18,289,804 18,911,771 20.6 0 1,632 2,966 22,798,89

 ������������������������������������������ 1-5 years 2,446,736 2,420,184 2,297,506 2,324,853 2,869,454 -14.7 0 0 77 2,446,65

 ������������������������������������������ > 5 years 1,021,146 1,016,489 974,365 1,029,287 1,503,977 -32.1 0 0 0 1,021,14

Equity contracts��������������������������������������� < 1 year 763,470 698,674 673,720 645,046 694,983 9.9 0 4 54 763,41

 ������������������������������������������ 1-5 years 323,010 292,130 305,141 291,190 309,578 4.3 0 11 114 322,88

 ������������������������������������������ > 5 years 77,484 81,116 89,804 135,907 88,294 -12.2 0 21 26 77,43

Commodity & other contracts ����������������� < 1 year 391,671 360,565 379,469 338,091 375,292 4.4 0 0 65 391,60

 ������������������������������������������ 1-5 years 217,997 150,937 140,984 163,812 175,069 24.5 0 0 4 217,99

 ������������������������������������������ > 5 years 19,107 18,082 18,960 5,903 16,142 18.4 0 0 0 19,10

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%)������������������� 26.0 23.5 23.5 26.1 27.1 0.1 0.4

Total potential future exposure to tier 1 capital (%)������ 53.2 55.1 56.2 58.1 61.9 0.1 0.3

Total exposure (credit equivalent amount) 

to tier 1 capital (%) ����������������������������������������������������� 79.2 78.6 79.7 84.3 88.9 0.2 0.7

Credit losses on derivatives***���������������������������������� 83.0 69.0 13.0 264.0 181.0 -54.1 0.0 0.

HELD FOR TRADING 

Number of institutions reporting derivatives����������������� 245 247 243 252 241 1.7 9 88 85 6

Total assets of institutions reporting derivatives ���������� 11,015,566 10,889,657 10,638,660 10,559,491 10,400,363 5.9 633 40,473 297,413 10,677,04

Total deposits of institutions reporting derivatives������� 8,262,986 8,185,857 7,997,380 7,964,587 7,786,249 6.1 535 33,721 233,992 7,994,73

Derivative Contracts by Underlying Risk Exposure 

Interest rate�������������������������������������������������������������������� 187,909,413 188,491,623 181,280,483 189,137,001 190,492,372 -1.4 80 1,951 22,032 187,885,35

Foreign exchange���������������������������������������������������������� 33,675,874 30,164,255 29,208,497 27,636,697 27,457,246 22.6 0 0 4,902 33,670,97

Equity ����������������������������������������������������������������������������� 2,300,741 2,182,209 2,136,529 2,043,918 2,162,663 6.4 0 0 45 2,300,69

Commodity & other�������������������������������������������������������� 1,320,794 1,206,811 1,256,235 1,200,547 1,330,681 -0.7 1 0 44 1,320,74

Total�������������������������������������������������������������������������������� 225,206,822 222,044,898 213,881,742 220,018,163 221,442,962 1.7 80 1,951 27,024 225,177,76

Trading Revenues: Cash & Derivative Instruments 

Interest rate�������������������������������������������������������������������� -826 2,878 2,010 357 2,995 N/M 0 0 19 -846

Foreign exchange���������������������������������������������������������� 4,892 2,026 2,137 1,550 588 732.0 0 0 3 4,88

Equity ����������������������������������������������������������������������������� 652 722 608 490 232 181.0 0 0 -8 65

Commodity & other (including credit derivatives) �������� 958 783 1,427 509 701 36.7 0 0 -1 95

Total trading revenues��������������������������������������������������� 5,676 6,409 6,183 2,906 4,517 25.7 0 0 14 5,66

Share of Revenue 

Trading revenues to gross revenues (%) ���������������������� 4.8 5.4 5.4 2.5 4.0 0.0 0.

Trading revenues to net operating revenues (%)���������� 23.7 24.5 26.9 11.3 20.9 0.0 0.3

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives����������������� 1,269 1,288 1,282 1,253 1,287 -1.4 63 759 352 9

Total assets of institutions reporting derivatives ���������� 13,420,481 13,229,907 12,945,001 12,763,131 12,619,286 6.3 4,554 313,564 1,017,375 12,084,98

Total deposits of institutions reporting derivatives������� 10,060,899 9,938,964 9,738,920 9,611,265 9,449,509 6.5 3,841 257,738 807,840 8,991,48

Derivative Contracts by Underlying 

Risk Exposure 

Interest rate�������������������������������������������������������������������� 2,984,954 3,060,044 3,135,945 3,942,711 3,780,192 -21 168 15,431 65,031 2,904,325

Foreign exchange���������������������������������������������������������� 724,435 819,319 849,536 843,789 804,895 -10 0 2,129 1,223 721,083

Equity ����������������������������������������������������������������������������� 16,528 16,223 15,965 16,724 15,504 6.6 0 73 336 16,11

Commodity & other�������������������������������������������������������� 6,216 7,586 6,825 8,327 8,995 -30.9 0 1 112 6,10

Total notional amount ���������������������������������������������������� 3,732,133 3,903,171 4,008,271 4,811,550 4,609,587 -19.0 168 17,633 66,701 3,647,63

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

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

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

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

in total assets
FDIC Quarterly 13 2014, Volume 8, No. 4

Quarterly Banking Profile

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

Asset Size Distribution

(dollar figures in millions)

3rd 

Quarter

2014

2nd 

Quarter

2014

1st 

Quarter

2014

4th 

Quarter

2013

3rd 

Quarter

2013

% Change 

13Q3-

14Q3

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 ����������������������������������������� 75 73 76 83 82 -8.5 1 24 17 3

Outstanding Principal Balance by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� $845,272 $843,776 $598,462 $610,275 $625,642 35.1 $17.0 $2,172.0 $15,174.0 $827,

Home equity loans��������������������������������������������������������������������������������������������� 38 39 41 42 44 -13.6 0 0 0 3

Credit card receivables�������������������������������������������������������������������������������������� 16,782 16,692 16,349 19,405 17,115 -1.9 0 89 0 16,69

Auto loans ���������������������������������������������������������������������������������������������������������� 4,198 4,312 4,735 4,676 4,708 -10.8 0 1,052 0 3,14

Other consumer loans ��������������������������������������������������������������������������������������� 6,425 4,945 4,462 4,607 4,790 34.1 0 2 0 6,42

Commercial and industrial loans����������������������������������������������������������������������� 13 1,217 1,881 1,987 3,945 -99.7 0 8 3 

All other loans, leases, and other assets���������������������������������������������������������� 95,102 94,757 96,071 101,456 104,890 -9.3 0 3,561 4,939 86,60

Total securitized and sold������������������������������������������������������������������������������������������ 967,830 965,737 722,001 742,448 761,133 27.2 17 6,884 20,116 940,81

Maximum Credit Exposure by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 2,806 2,908 2,912 2,809 2,927 -4.1 0 5 52 2,74

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

Credit card receivables�������������������������������������������������������������������������������������� 1,418 1,450 1,455 603 554 156.0 0 30 0 1,38

Auto loans ���������������������������������������������������������������������������������������������������������� 0 0 5 0 0 0.0 0 0 0 

Other consumer loans ��������������������������������������������������������������������������������������� 188 192 174 164 168 11.9 0 0 0 18

Commercial and industrial loans����������������������������������������������������������������������� 0 25 38 27 20 -100.0 0 0 0 

All other loans, leases, and other assets���������������������������������������������������������� 1,129 1,416 1,308 1,633 1,729 -34.7 0 1 0 1,12

Total credit exposure ������������������������������������������������������������������������������������������������� 5,541 5,991 5,892 5,236 5,397 2.7 0 37 52 5,45

Total unused liquidity commitments provided to institution's own securitizations ��� 17 17 120 121 121 -86.0 0 0 0 1

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

1-4 family residential loans�������������������������������������������������������������������������������� 3.9 3.5 3.3 4.3 4.1 0.0 1.

Home equity loans��������������������������������������������������������������������������������������������� 8.0 9.1 8.8 10.4 10.7 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 0.8 0.8 0.9 0.8 1.0 0.0 1.

Auto loans ���������������������������������������������������������������������������������������������������������� 0.7 0.7 0.6 1.0 0.6 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 4.8 5.5 5.2 5.6 5.4 0.0 0.

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

All other loans, leases, and other assets���������������������������������������������������������� 0.4 0.4 0.3 0.8 1.1 0.0 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 3.5 3.2 2.9 3.7 3.6 0.0 0.

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

1-4 family residential loans�������������������������������������������������������������������������������� 2.2 2.3 3.3 3.4 3.7 0.0 1.

Home equity loans��������������������������������������������������������������������������������������������� 42.0 40.3 37.8 36.5 34.4 0.0 0.0

Credit card receivables�������������������������������������������������������������������������������������� 0.5 0.6 0.7 0.6 0.6 0.0 1.

Auto loans ���������������������������������������������������������������������������������������������������������� 0.1 0.1 0.1 0.1 0.0 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 5.2 6.3 6.7 7.3 7.1 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 2.4 0.0 0.0 0.0 0.0 0.0 3.

All other loans, leases, and other assets���������������������������������������������������������� 6.5 9.2 8.7 9.2 8.9 0.0 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 2.6 2.9 3.9 4.1 4.3 0.0 1.

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

1-4 family residential loans�������������������������������������������������������������������������������� 0.3 0.2 0.1 0.9 0.7 0.0 0.

Home equity loans��������������������������������������������������������������������������������������������� 0.1 0.1 -0.1 0.2 0.3 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 1.5 1.2 0.6 2.2 1.9 0.0 5.

Auto loans ���������������������������������������������������������������������������������������������������������� 0.1 0.1 0.0 0.2 0.1 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 0.6 0.3 0.2 0.9 0.7 0.0 0.

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

All other loans, leases, and other assets���������������������������������������������������������� 0.6 0.9 0.7 0.9 0.6 0.0 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 0.3 0.3 0.2 0.9 0.7 0.0 0.

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

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

Credit card receivables�������������������������������������������������������������������������������������� 12,198 12,905 13,116 12,850 13,451 -9.3 0 313 0 11,88

Commercial and industrial loans����������������������������������������������������������������������� 3 2 2 3 3 0.0 0 0 3 

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

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

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

Commercial and industrial loans����������������������������������������������������������������������� 0 0 48 52 0 0.0 0 0 0 

Assets Sold with Recourse and Not Securitized 

Number of institutions reporting asset sales������������������������������������������������������������ 1,104 1,101 1,088 1,084 1,066 3.6 141 739 175 4

Outstanding Principal Balance by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 41,064 42,240 43,720 46,519 48,349 -15.1 1,632 13,915 9,054 16,46

Home equity, credit card receivables, auto, and other consumer loans ��������� 709 727 755 776 802 -11.6 0 2 5 70

Commercial and industrial loans����������������������������������������������������������������������� 52 53 69 62 64 -18.8 0 13 38 

All other loans, leases, and other assets���������������������������������������������������������� 66,271 65,112 65,974 67,794 62,143 6.6 1 96 184 65,98

Total sold and not securitized������������������������������������������������������������������������������������ 108,096 108,131 110,518 115,150 111,358 -2.9 1,633 14,027 9,281 83,15

Maximum Credit Exposure by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 9,853 9,646 9,573 10,756 11,607 -15.1 108 2,193 3,204 4,34

Home equity, credit card receivables, auto, and other consumer loans ��������� 140 141 155 160 156 -10.3 0 2 3 13

Commercial and industrial loans����������������������������������������������������������������������� 23 24 33 27 29 -20.7 0 13 9 

All other loans, leases, and other assets���������������������������������������������������������� 17,233 16,849 16,970 17,058 15,316 12.5 1 16 55 17,16

Total credit exposure ������������������������������������������������������������������������������������������������� 27,249 26,660 26,732 28,002 27,109 0.5 109 2,224 3,271 21,64

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others ������� 132 134 138 148 154 -14.3 12 72 29 1

Total credit exposure ������������������������������������������������������������������������������������������������� 41,590 42,375 42,058 44,707 44,848 -7.3 10 181 299 41,10

Total unused liquidity commitments ������������������������������������������������������������������������� 918 1,122 1,017 981 923 -0.5 0 0 0 91

Other

Assets serviced for others*��������������������������������������������������������������������������������������� 4,412,810 4,459,026 4,556,249 4,712,533 4,773,337 -7.6 5,627 135,185 295,517 3,976,48

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others������������������ 10,189 12,129 12,110 12,317 13,049 -21.9 5 0 4 10,18

Unused liquidity commitments to conduits sponsored by institutions 

 and others������������������������������������������������������������������������������������������������������� 27,948 28,274 30,515 31,113 40,363 -30.8 0 0 708 27,24

Net servicing income (for the quarter)���������������������������������������������������������������������� 2,885 2,771 2,142 4,627 3,182 -9.3 8 189 184 2,50

Net securitization income (for the quarter)��������������������������������������������������������������� 384 318 285 377 352 9.1 0 15 5 36

Total credit exposure to Tier 1 capital (%)** ������������������������������������������������������������� 5.3 5.4 5.4 5.8 5.9 0.9 1.

* 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 15 2014, Volume 8, No. 4

Quarterly Banking Profile

■ Net Income of $4.9 Billion Improved 11 Percent From Third Quarter 2013

■ Net Interest Income and Noninterest Income Increased

■ Loan Balances Increased, Outpacing Industry Growth

■ Noncurrent Loan Rate Improved to Pre-Crisis Level

COMMUNITY BANK PERFORMANCE

0.47

1.04

-0.18

0.06

0.55

0.07

0.33

Contributors to the Year-Over-Year Change in Income

FDIC-Insured Community Banks

Billions of Dollars Positive Factor

Negative Factor

Net

Income

Net

Interest

Income

Loan Loss

Provisions

Noninterest

Income

Noninterest

Expense

Realized

Gains on

Securities

Income

Taxes

Source: FDIC. 

+11% +7% -24% +1% +4% +183% +30%

-$2.0

-$1.0

$0.0

$1.0

$2.0

Chart 1 Chart 2

Net Interest Margin

Percent

Source: FDIC.

3.0

3.5

4.0

Community Banks

All Insured Institutions

3.63 3.65

3.26

3.14

2006 2007 2008 2009 2010 2011 2012 2013 2014

Earnings Improved From a Year Ago, Outpacing 

Industry Growth

Improved net operating revenue (the sum of net interest income and total noninterest income), coupled with 

lower provision expenses, increased community banks 

net income of $4.9 billion, up $470.7 million (10.7 

percent) from third quarter 2013.1 The percentage 

increase in earnings at community banks was higher 

than the 7.6 percent increase for the industry. Almost 

two out of every three community banks (63 percent) 

reported a year-over-year increase, while 6.6 percent of 

community banks were unprofitable during third quarter 2014, the lowest number of banks with a quarterly 

loss since second quarter 2006. The pretax return on 

assets (ROA) was 1.25 percent, up 2 basis points from 

the previous quarter and 11 basis points from the year 

before—the highest level since third quarter 2007.2

1

 Prior-period dollar amounts used for comparisons are mergeradjusted, meaning the same institutions identified as community 

banks in the current quarter are used to determine dollar amounts in 

previous quarters, after taking into account acquisitions. Performance 

ratios are not merger-adjusted.

2

 Pretax ROA is used for comparison because C corporations are taxed 

at the bank level, while S corporations pass tax obligations to their 

shareholders. 

More Than 70 Percent of Community Banks 

Increased Net Interest Income

Community banks reported net interest income of $17 

billion during the quarter, up $1 billion (6.5 percent) 

from third quarter 2013—outperforming the industry 

(3.1 percent). Close to 33 percent of the industry’s 

annual growth in net interest income (up $3.2 billion) 

came from community banks. The net interest margin 

(NIM) was 3.65 percent at community banks, up 2 basis 

points from third quarter 2013, as average funding costs 

declined more rapidly than average asset yields. For the 

past five out of six quarters, NIM at community banks 

increased, while it declined or remained flat for the 

industry. Community banks posted a NIM 51 basis 

points above the industry average.

Higher Gains on Loan Sales Increased 

Noninterest Income

Noninterest income totaled $4.5 billion in third quarter 

2014, up $63 million (1.4 percent) from third quarter 

2013 as revenue from loan sales—including mortgage 

sales—increased by $58.4 million (7 percent) from the 

year-ago quarter. All other noninterest income—which 

accounts for almost 40 percent of total noninterest 

income at community banks—was $1.7 billion during 

the quarter, up $26.6 million (1.6 percent) from third 
FDIC Quarterly 16 2014, Volume 8, No. 4

quarter 2013.3 More than half of community banks 

(51.7 percent) increased noninterest income from third 

quarter 2013. However, the industry experienced a 

higher rate increase (9.6 percent).

Noninterest Expense Increased From a Year Ago

Noninterest expense at community banks was $553.5 

million (3.9 percent) higher than in third quarter 2013. 

The year-over-year increase in noninterest expense was 

led by higher salary and employee benefits (up $381.5 

million, or 5 percent). Close to 65 percent of community banks reported higher noninterest expense from 

the year-ago quarter. However, full-time employees at 

community banks only increased by 4,757 (1.1 percent) 

over the year to 445,090. The average asset per 

employee totaled $4.6 million for the current quarter, 

up from $4.4 million in third quarter 2013.

Loan Growth Increased From the Second Quarter 

and a Year Ago

Loan balances increased by $25.3 billion (1.9 percent) 

from the second quarter 2014, totaling $1.3 trillion. 

Almost three out of four community banks (71 

percent) reported higher loan growth from the previous 

quarter. Community banks reported higher loan growth 

3

 Items that are greater than $25,000 and exceed 3 percent of all other 

noninterest income are reported. They include income and fees from 

printing and sale of checks, earnings on increase in value of cash 

surrender value of life insurance, income and fees from automated 

teller machines, rent and other income from other real estate owned, 

safe deposit box rent, net change in the fair values of financial instruments accounted for under a fair value option, bank card and credit 

card interchange fees, and gains on bargain purchases.

than the industry, which grew less than 1 percent. All 

major loan categories increased from the previous quarter, led by nonfarm nonresidential loans (up $6.1 

billion, or 1.6 percent), 1-to-4 family (up $4 billion, or 

1.1 percent), construction and development (up $3.3 

billion, or 4.2 percent), and commercial and industrial 

loans (up $2.4 billion, or 1.3 percent). Year-over-year 

loan growth at community banks (8 percent) outpaced 

the industry (4.6 percent). Almost 43 percent of the 

yearly increase at community banks was led by nonfarm 

nonresidential (up $24.1 billion, or 6.5 percent) and 

commercial and industrial loans (up $18.1 billion, or 

10.8 percent). Despite declines in 1-to-4 family loans 

and home equity lines of credit for the industry, 

community banks experienced a growth of $18 billion 

(5.3 percent) and $2.9 billion (6.3 percent), respectively. Total unused commercial real estate (CRE) 

loans—including construction and development—

increased by $4.1 billion (6.7 percent) during the quarter to $64.7 billion, indicating continued credit 

extension, as off-balance and on-balance CRE loans 

increased from the previous quarter.

Community Banks Expanded Small Loans to 

Businesses

Small loans to businesses totaled $299 billion in the 

third quarter, up $2.7 billion (0.9 percent) from the 

previous quarter, outperforming the industry (up $2.2 

billion, or 0.3 percent).4 Close to 56 percent of community banks increased small loans to businesses from the 

previous quarter, led by agricultural production loans 

4

 Small loans to businesses consist of loans to commercial borrowers 

up to $1 million and farm loans up to $500,000.

Change in Loan Balances and Unused Commitments

FDIC-Insured Community Banks

Source: FDIC. 

Billions of Dollars

Loan Balances

Unused

Commitments

24.1

18.1

9.8

18.0

4.6 3.7 2.9

11.7

8.2

6.1

2.4

4.0 3.3 2.6 1.7 1.34.1 3.8

Nonfarm

Nonresidential RE

C&I

Loans

1-to-4

Family

Residential RE

C&D

Loans

Agricultural Production

Loans

Loans to

Individuals

Home

Equity

Real Estate

(CRE & C&D)

C&I

Loans

Change 3Q 2014 vs. 3Q 2013

Change 3Q 2014 vs. 2Q 2014

Chart 3 Chart 4

Noncurrent Loan Rates for FDIC-Insured Community Banks

Percent of Loan Portfolio Noncurrent

Source: FDIC.

0 

2 

4 

6 

8 

10 

12 

14 

16 

2006 2007 2008 2009 2010 2011 2012 2013 2014 

C&D Loans

Nonfarm Nonresidential RE

1-to-4 Family RE

C&I Loans

Home Equity

Credit Cards
FDIC Quarterly 17 2014, Volume 8, No. 4

Quarterly Banking Profile

(up 17 basis points). Construction and development 

loans continued to have the highest noncurrent rate 

(3.03 percent); however, that rate has declined for 16 

consecutive quarters. The quarterly net charge-off rate 

was 0.16 percent, down 13 basis points from third quarter 2013, and remained down 29 basis points from the 

industry rate of 0.45 percent. The coverage ratio (loan 

loss reserves relative to noncurrent loans) for community banks improved from 96.3 percent to 97.14 percent 

during the quarter, and was well above the industry 

average of 72.86 percent. Despite a small decline in 

reserves during the quarter (down $74 million, or 0.4 

percent), the coverage ratio has increased for 12 

consecutive quarters.

Two Community Banks Failed in the Third Quarter

The number of FDIC-insured community banks totaled 

6,107 in third quarter 2014, down 56 banks from the 

previous quarter. Two community banks failed during 

the quarter. Community banks continued to represent 

93 percent of insured institutions, with $2 trillion in 

assets, $1.7 trillion in deposits, and $226 billion in 

equity capital.

Author: Benjamin Tikvina, Economic Analyst

Division of Insurance and Research

(202) 898-6578

(up $1.7 billion, or 6.6 percent) and nonfarm nonresidential loans ($0.7 billion, or 0.5 percent). All major 

loan categories rose from third quarter 2013, with small 

loans to businesses increasing by $10.3 billion (3.6 

percent). Most of the year-over-year increase in small 

loans to businesses at community banks was driven by 

increases in commercial and industrial loans (up $4.6 

billion, or 5.3 percent). Community banks continued to 

hold 45 percent of small loans to businesses. Like 

community banks, the industry increased small loans to 

businesses from the year-ago quarter, but at a slower 

rate (2 percent).

Asset Quality Continued to Improve

Noncurrent loan balances totaled $20 billion for the 

current quarter, down $5.1 billion (20.3 percent) from 

third quarter 2013. Close to 61 percent of community 

banks lowered their noncurrent loan balances versus 

the year-ago quarter. The noncurrent rate was 1.5 

percent for community banks in third quarter 2014, the 

lowest level since fourth quarter 2007. The noncurrent 

rate fell 4 basis points from the second quarter and 48 

basis points from the previous year, and remained down 

61 basis points from the industry rate of 2.11 percent. 

The noncurrent rate declined for most major loan categories from the year before, except for credit card loans 
FDIC Quarterly 18 2014, Volume 8, No. 4

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

2014* 2013* 2013 2012 2011 2010 2009

Return on assets (%)������������������������������������������������������������������������������������������������������ 0.92 0.93 0.90 0.83 0.55 0.2

Return on equity (%)������������������������������������������������������������������������������������������������������� 8.44 8.54 8.28 7.67 5.17 2.0

Core capital (leverage) ratio (%) ������������������������������������������������������������������������������������ 10.60 10.48 10.44 10.18 9.98 9.

Noncurrent assets plus other real estate owned to assets (%) ������������������������������������ 1.46 1.89 1.72 2.27 2.84 3.

Net charge-offs to loans (%) ������������������������������������������������������������������������������������������ 0.20 0.31 0.32 0.59 0.87 1.

Asset growth rate (%) ����������������������������������������������������������������������������������������������������� 1.13 1.12 0.25 2.24 1.47 -2.

Net interest margin (%)��������������������������������������������������������������������������������������������������� 3.61 3.57 3.59 3.67 3.74 3.

Net operating income growth (%)����������������������������������������������������������������������������������� 1.03 18.52 14.65 56.54 204.98 209.82 

Number of institutions reporting������������������������������������������������������������������������������������� 6,107 6,380 6,307 6,543 6,800 7,017 7,251

Percentage of unprofitable institutions (%)�������������������������������������������������������������������� 6.76 8.13 8.40 11.16 16.35 22.1

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

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

(dollar figures in millions)  3rd Quarter

2014

2nd Quarter

2014

3rd Quarter

2013

%Change 

13Q3-14Q3

Number of institutions reporting������������������������������������������������������������������������������������� 6,107 6,163 6,380 -4.

Total employees (full-time equivalent)��������������������������������������������������������������������������� 445,090 448,005 457,163 -2.

CONDITION DATA

Total assets��������������������������������������������������������������������������������������������������������������������� $2,031,705 $2,022,238 $2,008,965 1.

Loans secured by real estate���������������������������������������������������������������������������������� 1,017,241 1,004,794 982,395 3.

 1-4 Family residential mortgages �������������������������������������������������������������������� 355,440 354,196 347,563 2.

 Nonfarm nonresidential������������������������������������������������������������������������������������ 396,550 392,691 388,606 2.

 Construction and development������������������������������������������������������������������������ 82,894 79,646 75,913 9.

 Home equity lines��������������������������������������������������������������������������������������������� 49,203 47,989 48,158 2.

Commercial & industrial loans �������������������������������������������������������������������������������� 186,291 184,907 174,975 6.

Loans to individuals������������������������������������������������������������������������������������������������� 58,289 56,999 55,066 5.

 Credit cards ������������������������������������������������������������������������������������������������������ 1,790 1,817 1,787 0.

Farm loans��������������������������������������������������������������������������������������������������������������� 46,093 43,645 41,861 10.

Other loans & leases����������������������������������������������������������������������������������������������� 29,444 28,576 27,364 7.

Less: Unearned income ������������������������������������������������������������������������������������������ 556 555 546 1.

Total loans & leases ������������������������������������������������������������������������������������������������ 1,336,801 1,318,366 1,281,115 4.

Less: Reserve for losses����������������������������������������������������������������������������������������� 19,450 19,550 20,917 -7.

Net loans and leases����������������������������������������������������������������������������������������������� 1,317,351 1,298,816 1,260,197 4.

Securities����������������������������������������������������������������������������������������������������������������� 452,656 458,191 468,161 -3.

Other real estate owned������������������������������������������������������������������������������������������ 9,450 10,004 12,389 -23.

Goodwill and other intangibles ������������������������������������������������������������������������������� 12,571 12,507 12,407 1.

All other assets�������������������������������������������������������������������������������������������������������� 239,678 242,720 255,811 -6.

Total liabilities and capital ���������������������������������������������������������������������������������������������� 2,031,705 2,022,238 2,008,965 1.

Deposits������������������������������������������������������������������������������������������������������������������� 1,672,413 1,664,163 1,660,300 0.

 Domestic office deposits���������������������������������������������������������������������������������� 1,672,195 1,663,940 1,660,081 0.

 Foreign office deposits������������������������������������������������������������������������������������� 217 222 220 -1.

 Brokered deposits �������������������������������������������������������������������������������������������� 59,384 56,163 52,312 13.

Estimated insured deposits������������������������������������������������������������������������������������� 1,300,091 1,303,836 1,320,002 -1.

Other borrowed funds ��������������������������������������������������������������������������������������������� 117,192 118,990 115,563 1.

Subordinated debt��������������������������������������������������������������������������������������������������� 400 420 490 -18.

All other liabilities ���������������������������������������������������������������������������������������������������� 15,632 14,823 15,911 -1.

Total equity capital (includes minority interests)���������������������������������������������������� 226,068 223,843 216,702 4.

 Bank equity capital������������������������������������������������������������������������������������������� 225,915 223,696 216,557 4.

Loans and leases 30-89 days past due������������������������������������������������������������������������� 9,034 8,943 9,880 -8.

Noncurrent loans and leases ����������������������������������������������������������������������������������������� 20,022 20,300 25,385 -21.

Restructured loans and leases �������������������������������������������������������������������������������������� 11,363 11,113 12,807 -11.

Mortgage-backed securities ������������������������������������������������������������������������������������������ 197,924 201,690 207,599 -4.

Earning assets���������������������������������������������������������������������������������������������������������������� 1,879,822 1,865,993 1,847,837 1.

FHLB Advances�������������������������������������������������������������������������������������������������������������� 85,873 87,084 80,134 7.

Unused loan commitments��������������������������������������������������������������������������������������������� 248,575 242,784 233,841 6.

Trust assets��������������������������������������������������������������������������������������������������������������������� 238,569 243,767 223,856 6.

Assets securitized and sold ������������������������������������������������������������������������������������������� 18,906 15,340 15,656 20.

Notional amount of derivatives��������������������������������������������������������������������������������������� 43,410 48,984 44,339 -2.

INCOME DATA

First Three 

Quarters 2014

First Three 

Quarters 2013 %Change

3rd Quarter 

2014

3rd Quarter 

2013

%Change 

13Q3-14Q3

Total interest income ������������������������������������������������������������������� $56,665 $57,104 -0.8 $19,312 $19,241 0

Total interest expense ����������������������������������������������������������������� 6,826 7,984 -14.5 2,280 2,563 -11

Net interest income �������������������������������������������������������������� 49,839 49,120 1.5 17,032 16,678 2

Provision for loan and lease losses �������������������������������������������� 1,867 2,408 -22.5 555 736 -24

Total noninterest income������������������������������������������������������������� 13,229 14,511 -8.8 4,535 4,606 -1

Total noninterest expense����������������������������������������������������������� 43,776 44,330 -1.2 14,820 14,842 -0

Securities gains (losses)������������������������������������������������������������� 389 541 -28.1 110 15 623

Applicable income taxes ������������������������������������������������������������� 3,993 3,634 9.9 1,411 1,186 19

Extraordinary gains, net�������������������������������������������������������������� 2 45 -96.1 -6 0 N/

Total net income (includes minority interests)��������������������� 13,823 13,845 -0.2 4,885 4,536 7

 Bank net income������������������������������������������������������������ 13,807 13,825 -0.1 4,878 4,527 7

Net charge-offs���������������������������������������������������������������������������� 1,895 2,874 -34.1 544 928 -41

Cash dividends ���������������������������������������������������������������������������� 6,134 6,080 0.9 1,926 2,251 -14

Retained earnings ����������������������������������������������������������������������� 7,672 7,744 -0.9 2,952 2,276 29

Net operating income����������������������������������������������������������� 13,515 13,378 1.0 4,803 4,529 6

N/M - Not Meaningful
FDIC Quarterly 19 2014, Volume 8, No. 4

Quarterly Banking Profile

TABLE III-B. Aggregate Condition and Income Data by Geographic Region, FDIC-Insured Community Banks

Third Quarter 2014

(dollar figures in millions)

Geographic Regions*

All Community Banks New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting����������������������������������� 6,107 718 757 1,362 1,550 1,309 411

Total employees (full-time equivalent)������������������������� 445,090 87,432 58,827 96,199 71,619 96,123 34,890

CONDITION DATA

Total assets������������������������������������������������������������������� $2,031,705 $513,171 $250,259 $392,934 $311,690 $394,524 $169,128

Loans secured by real estate�������������������������������� 1,017,241 293,927 133,835 196,870 134,151 174,276 84,183

 1-4 Family residential mortgages ������������������ 355,440 122,058 42,442 72,176 40,261 58,185 20,320

 Nonfarm nonresidential���������������������������������� 396,550 103,432 59,002 72,703 47,111 71,607 42,695

 Construction and development���������������������� 82,894 15,739 14,781 11,864 10,597 23,333 6,579

 Home equity lines������������������������������������������� 49,203 16,140 7,749 11,994 4,314 4,389 4,616

Commercial & industrial loans ������������������������������ 186,291 43,412 19,637 35,218 30,668 40,298 17,059

Loans to individuals����������������������������������������������� 58,289 11,391 7,549 12,238 9,672 13,718 3,721

 Credit cards ���������������������������������������������������� 1,790 202 139 456 446 323 224

Farm loans������������������������������������������������������������� 46,093 494 1,236 7,196 25,333 9,240 2,594

Other loans & leases��������������������������������������������� 29,444 7,474 2,081 5,499 5,245 6,334 2,810

Less: Unearned income ���������������������������������������� 556 147 95 65 26 117 106

Total loans & leases ���������������������������������������������� 1,336,801 356,550 164,242 256,957 205,042 243,749 110,260

Less: Reserve for losses��������������������������������������� 19,450 4,347 2,572 4,121 3,100 3,496 1,816

Net loans and leases��������������������������������������������� 1,317,351 352,204 161,670 252,837 201,942 240,254 108,444

Securities��������������������������������������������������������������� 452,656 104,848 51,039 90,649 72,739 99,147 34,233

Other real estate owned���������������������������������������� 9,450 1,180 2,486 1,981 1,453 1,765 585

Goodwill and other intangibles ����������������������������� 12,571 4,081 1,294 2,299 1,695 2,290 912

All other assets������������������������������������������������������ 239,678 50,859 33,770 45,168 33,860 51,068 24,953

Total liabilities and capital �������������������������������������������� 2,031,705 513,171 250,259 392,934 311,690 394,524 169,128

Deposits����������������������������������������������������������������� 1,672,413 406,471 208,484 325,897 257,556 332,654 141,351

 Domestic office deposits�������������������������������� 1,672,195 406,344 208,440 325,871 257,556 332,654 141,331

 Foreign office deposits����������������������������������� 217 126 45 26 0 0 20

 Brokered deposits ������������������������������������������ 59,384 17,627 6,551 12,453 9,052 8,581 5,120

 Estimated insured deposits ��������������������������� 1,300,091 307,803 163,531 267,686 208,295 249,713 103,063

Other borrowed funds ������������������������������������������� 117,192 44,165 12,141 20,532 17,949 16,305 6,100

Subordinated debt������������������������������������������������� 400 207 56 88 4 7 38

All other liabilities �������������������������������������������������� 15,632 5,169 1,663 2,806 1,910 2,531 1,554

Total equity capital (includes minority interests)�� 226,068 57,160 27,915 43,611 34,271 43,026 20,085

 Bank equity capital����������������������������������������� 225,915 57,112 27,898 43,556 34,269 42,996 20,083

Loans and leases 30-89 days past due����������������������� 9,034 2,521 1,346 1,882 1,091 1,828 366

Noncurrent loans and leases ��������������������������������������� 20,022 6,020 3,326 4,671 2,055 2,779 1,172

Restructured loans and leases ������������������������������������ 11,363 2,820 1,975 2,993 1,303 1,310 963

Mortgage-backed securities ���������������������������������������� 197,924 58,518 22,365 36,914 24,358 38,532 17,236

Earning assets�������������������������������������������������������������� 1,879,822 477,363 228,947 363,013 289,393 364,127 156,978

FHLB Advances������������������������������������������������������������ 85,873 35,160 9,212 14,069 11,757 12,168 3,507

Unused loan commitments������������������������������������������� 248,575 60,684 29,419 48,165 41,938 44,344 24,025

Trust assets������������������������������������������������������������������� 238,569 52,746 9,261 68,120 62,314 39,255 6,874

Assets securitized and sold ����������������������������������������� 18,906 5,628 514 6,127 4,511 620 1,505

Notional amount of derivatives������������������������������������� 43,410 15,035 5,885 6,768 5,472 7,370 2,880

INCOME DATA

Total interest income ���������������������������������������������������� $19,312 $4,681 $2,469 $3,656 $2,992 $3,896 $1,619

Total interest expense �������������������������������������������������� 2,280 711 297 426 343 376 127

Net interest income ����������������������������������������������� 17,032 3,970 2,172 3,230 2,649 3,520 1,492

Provision for loan and lease losses ����������������������������� 555 158 65 108 79 131 13

Total noninterest income���������������������������������������������� 4,535 805 547 1,172 716 915 380

Total noninterest expense �������������������������������������������� 14,820 3,391 1,995 3,008 2,196 2,956 1,273

Securities gains (losses)���������������������������������������������� 110 32 21 20 17 12 7

Applicable income taxes ���������������������������������������������� 1,411 400 170 311 171 198 161

Extraordinary gains, net����������������������������������������������� -6 -2 -3 0 0 -1 0

Total net income (includes minority interests)������ 4,885 855 507 996 935 1,161 431

 Bank net income��������������������������������������������� 4,878 852 506 994 935 1,160 431

Net charge-offs������������������������������������������������������������� 544 145 98 123 79 99 0

Cash dividends ������������������������������������������������������������� 1,926 247 172 492 374 488 153

Retained earnings �������������������������������������������������������� 2,952 605 334 502 561 671 278

Net operating income�������������������������������������������� 4,803 831 494 980 921 1,152 426

* See Table V-A (page 11) for explanations
FDIC Quarterly 20 2014, Volume 8, No. 4

Table IV-B. Third Quarter 2014, FDIC-Insured Community Banks

All Community Banks Third Quarter 2014, Geographic Regions*

 3rd Quarter 

2014

2nd Quarter 

2014 New York Atlanta Chicago Kansas City Dallas San Francisco

Performance ratios (annualized, %)

Yield on earning assets�������������������������������������������������� 4.14 4.10 3.95 4.34 4.05 4.16 4

Cost of funding earning assets �������������������������������������� 0.49 0.49 0.60 0.52 0.47 0.48 0

Net interest margin�������������������������������������������������� 3.65 3.61 3.35 3.82 3.58 3.68 3

Noninterest income to assets����������������������������������������� 0.90 0.91 0.63 0.88 1.20 0.92 0

Noninterest expense to assets��������������������������������������� 2.94 2.91 2.66 3.20 3.07 2.83 3

Loan and lease loss provision to assets������������������������ 0.11 0.12 0.12 0.10 0.11 0.10 0

Net operating income to assets ������������������������������������� 0.95 0.94 0.65 0.79 1.00 1.19 1

Pretax return on assets �������������������������������������������������� 1.25 1.23 0.98 1.09 1.33 1.43 1

Return on assets������������������������������������������������������������� 0.97 0.96 0.67 0.81 1.02 1.21 1

Return on equity ������������������������������������������������������������� 8.72 8.76 6.04 7.34 9.20 11.02 10

Net charge-offs to loans and leases������������������������������ 0.16 0.20 0.16 0.24 0.19 0.15 0

Loan and lease loss provision to net charge-offs���������� 101.85 93.16 108.59 66.17 87.59 101.10 132

Efficiency ratio ���������������������������������������������������������������� 68.38 68.42 70.66 72.94 68.02 64.92 66.

Net interest income to operating revenue���������������������� 78.97 78.63 83.14 79.87 73.38 78.72 79.

% of unprofitable institutions������������������������������������������ 6.60 7.06 9.33 10.04 7.42 4.39 4

% of institutions with earnings gains������������������������������ 63.01 57.54 62.53 63.14 61.01 62.84 64.

Table V-B. First Three Quarters 2014, FDIC-Insured Community Banks

All Community Banks First Three Quarters 2014, Geographic Regions*

First Three 

Quarters 2014

First Three 

Quarters 2013 New York Atlanta Chicago Kansas City Dallas San Francisco

Performance ratios (%)

Yield on earning assets�������������������������������������������������� 4.11 4.16 3.94 4.33 4.02 4.12 4

Cost of funding earning assets �������������������������������������� 0.49 0.58 0.60 0.53 0.48 0.48 0

Net interest margin�������������������������������������������������� 3.61 3.57 3.34 3.79 3.54 3.63 3

Noninterest income to assets����������������������������������������� 0.88 0.97 0.63 0.85 1.18 0.92 0

Noninterest expense to assets��������������������������������������� 2.93 2.97 2.66 3.19 3.06 2.83 3

Loan and lease loss provision to assets������������������������ 0.12 0.16 0.17 0.11 0.13 0.09 0

Net operating income to assets ������������������������������������� 0.90 0.90 0.59 0.76 0.96 1.16 1

Pretax return on assets �������������������������������������������������� 1.19 1.17 0.94 1.04 1.27 1.38 1

Return on assets������������������������������������������������������������� 0.92 0.93 0.63 0.78 0.97 1.18 1

Return on equity ������������������������������������������������������������� 8.44 8.54 5.71 7.16 8.97 10.93 10

Net charge-offs to loans and leases������������������������������ 0.20 0.31 0.23 0.26 0.25 0.14 0

Loan and lease loss provision to net charge-offs���������� 98.50 83.80 111.63 66.91 81.33 105.44 127.7

Efficiency ratio ���������������������������������������������������������������� 69.08 69.34 70.84 73.59 68.45 65.68 67.

Net interest income to operating revenue���������������������� 79.02 77.20 83.05 80.22 73.40 78.44 79.

% of unprofitable institutions������������������������������������������ 6.76 8.13 8.36 10.83 8.08 3.94 4

% of institutions with earnings gains������������������������������ 60.32 51.71 56.96 62.88 54.70 63.16 63.

* See Table V-A (page 11) for explanations
FDIC Quarterly 21 2014, Volume 8, No. 4

Quarterly Banking Profile

Table VI-B. Loan Performance, FDIC-Insured Community Banks

September 30, 2014

Geographic Regions*

All Community Banks New York Atlanta Chicago Kansas City Dallas San Francisco

Percent of Loans 30-89 Days Past Due

All loans secured by real estate ������������������������������������������� 0.67 0.69 0.79 0.77 0.52 0.

Construction and development������������������������������������� 0.55 0.65 0.60 0.57 0.50 0.

Nonfarm nonresidential������������������������������������������������� 0.49 0.50 0.58 0.61 0.41 0.

Multifamily residential real estate ��������������������������������� 0.29 0.25 0.37 0.54 0.11 0.

Home equity loans��������������������������������������������������������� 0.51 0.63 0.59 0.51 0.36 0.

Other 1-4 family residential������������������������������������������� 1.05 1.00 1.26 1.12 0.89 1.

Commercial and industrial loans ����������������������������������������� 0.53 0.34 0.65 0.52 0.66 0.

Loans to individuals�������������������������������������������������������������� 1.70 2.66 1.94 1.22 1.06 1.

Credit card loans ����������������������������������������������������������� 1.90 3.76 1.16 1.33 2.81 1.

Other loans to individuals ��������������������������������������������� 1.69 2.64 1.95 1.22 0.98 1.

All other loans and leases (including farm) ������������������������� 0.32 0.42 0.23 0.28 0.28 0.

Total loans and leases���������������������������������������������������������� 0.68 0.71 0.82 0.73 0.53 0.

Percent of Loans Noncurrent**

All loans secured by real estate ������������������������������������������� 1.67 1.82 2.16 2.06 1.15 1.

Construction and development������������������������������������� 3.03 3.58 4.73 3.82 2.38 1.

Nonfarm nonresidential������������������������������������������������� 1.58 1.65 1.88 2.19 1.27 1.

Multifamily residential real estate ��������������������������������� 0.76 0.36 1.70 1.56 0.68 1.

Home equity loans��������������������������������������������������������� 0.90 1.01 0.88 1.07 0.51 0.

Other 1-4 family residential������������������������������������������� 1.86 2.25 1.94 2.11 1.26 1.

Commercial and industrial loans ����������������������������������������� 1.20 1.25 1.27 1.36 1.15 1.

Loans to individuals�������������������������������������������������������������� 0.85 0.91 2.09 0.48 0.54 0.

Credit card loans ����������������������������������������������������������� 0.99 1.82 0.55 0.79 1.39 0.

Other loans to individuals ��������������������������������������������� 0.84 0.89 2.12 0.46 0.50 0.

All other loans and leases (including farm) ������������������������� 0.43 0.29 0.86 0.57 0.37 0.

Total loans and leases���������������������������������������������������������� 1.50 1.69 2.02 1.82 1.00 1.

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate ������������������������������������������� 0.16 0.20 0.22 0.24 0.09 0.

Construction and development������������������������������������� 0.17 0.35 0.45 0.17 0.04 0.0

Nonfarm nonresidential������������������������������������������������� 0.14 0.12 0.22 0.26 0.12 0.

Multifamily residential real estate ��������������������������������� 0.10 0.03 0.18 0.24 0.09 0.

Home equity loans��������������������������������������������������������� 0.21 0.16 0.26 0.32 0.18 0.

Other 1-4 family residential������������������������������������������� 0.21 0.31 0.16 0.25 0.12 0.

Commercial and industrial loans ����������������������������������������� 0.26 0.28 0.34 0.28 0.24 0.

Loans to individuals�������������������������������������������������������������� 0.68 0.73 0.71 0.54 0.65 0.

Credit card loans ����������������������������������������������������������� 4.14 5.60 1.51 3.23 8.11 1.

Other loans to individuals ��������������������������������������������� 0.56 0.64 0.70 0.43 0.29 0.

All other loans and leases (including farm) ������������������������� 0.13 0.09 0.21 0.10 0.05 0.

Total loans and leases���������������������������������������������������������� 0.20 0.23 0.26 0.25 0.14 0.

Loans Outstanding (in billions)

All loans secured by real estate ������������������������������������������� $1,017.2 $293.9 $133.8 $196.9 $134.2 $174.

Construction and development������������������������������������� 82.9 15.7 14.8 11.9 10.6 2

Nonfarm nonresidential������������������������������������������������� 396.6 103.4 59.0 72.7 47.1 71

Multifamily residential real estate ��������������������������������� 75.2 35.1 5.8 14.1 7.0 

Home equity loans��������������������������������������������������������� 49.2 16.1 7.7 12.0 4.3 

Other 1-4 family residential������������������������������������������� 355.4 122.1 42.4 72.2 40.3 58

Commercial and industrial loans ����������������������������������������� 186.3 43.4 19.6 35.2 30.7 40

Loans to individuals�������������������������������������������������������������� 58.3 11.4 7.5 12.2 9.7 1

Credit card loans ����������������������������������������������������������� 1.8 0.2 0.1 0.5 0.4 

Other loans to individuals ��������������������������������������������� 56.5 11.2 7.4 11.8 9.2 1

All other loans and leases (including farm) ������������������������� 75.5 8.0 3.3 12.7 30.6 1

Total loans and leases���������������������������������������������������������� 1,337.4 356.7 164.3 257.0 205.1 243.

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments ��������������������������������������������� 248,575 60,684 29,419 48,165 41,938 44,344 24,025

Construction and development: 1-4 family residential �� 19,186 3,981 3,434 2,276 2,388 5,428 1,679

Construction and development: CRE and other ����������� 44,205 13,295 5,971 6,681 5,330 9,547 3,380

Commercial and industrial �������������������������������������������� 86,150 19,682 9,002 18,041 14,340 15,942 9,143

* See Table V-A (page 11) 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 22 2014, Volume 8, No. 4

Total assets of the 6,589 FDIC-insured institutions 

increased by 1.2 percent ($176.7 billion) during the 

third quarter of 2014. Total deposits increased by 

0.9 percent ($106.3 billion), domestic office deposits 

increased by 1.1 percent ($114.0 billion), and foreign 

office deposits decreased by 0.5 percent ($7.7 billion). 

Domestic noninterest-bearing deposits increased by 

1.3 percent ($35.5 billion) and savings deposits and 

interest-bearing checking accounts increased by 2 

percent ($113.4 billion), while domestic time deposits 

decreased by 2.1 percent ($34.9 billion). For the twelve 

months ending September 30, total domestic deposits 

grew by 6 percent ($573.0 billion), with interest-bearing 

deposits increasing by 4.6 percent ($323.2 billion) 

and noninterest-bearing deposits rising by 9.8 percent 

($249.7 billion).1 Other borrowed money increased by 

17 percent (a little more than half of the increase was 

from increases in FHLB advances), securities sold under 

agreements to repurchase declined by 16.7 percent, and 

foreign deposit growth was nearly flat (a decrease of 

0.3 percent) over the same twelve-month period.2

Total estimated insured deposits increased by 0.4 

percent in the third quarter of 2014.3 For institutions 

existing at the start and the end of the most recent 

quarter, insured deposits increased during the quarter 

at 2,809 institutions (43 percent), decreased at 3,754 

institutions (57 percent), and remained unchanged at 

35 institutions. Estimated insured deposits increased by 

2.8 percent over the 12 months ending September 30, 

2014.

The DIF increased by $3.3 billion during the third 

quarter of 2014 to a record $54.3 billion (unaudited). 

The prior high for the DIF was $52.8 billion in the first 

quarter of 2008. Assessment income of $2 billion and a 

1

 Throughout the insurance fund discussion, FDIC-insured institutions 

include insured commercial banks and savings associations and, 

except where noted, exclude insured branches of foreign banks. 

2

 Other borrowed money includes FHLB advances, term federal funds, 

mortgage indebtedness, and other borrowings.

3

 Figures for estimated insured deposits in this discussion include 

insured branches of foreign banks, in addition to insured commercial 

banks and savings institutions.

negative provision for insurance losses of $1.7 billion 

were the main forces behind the fund balance increase. 

The negative provision for insurance losses reflected 

unanticipated recoveries from litigation settlements and 

receivership asset recoveries that exceeded estimates. 

These recoveries were partially offset by an increase in 

the contingent loss reserve. Investment income and all 

other miscellaneous income net of expenses added 

another $86 million to the fund. Third quarter operating expenses and unrealized losses on available-for-sale 

securities reduced the fund balance by $497 million. For 

the first nine months of 2014, 14 insured institutions 

failed, with combined assets of $1.8 billion, at a current 

estimated cost to the DIF of $289 million. The DIF’s 

reserve ratio was 0.89 percent on September 30, up 

from 0.84 percent at June 30, 2014, and 0.68 percent 

four quarters ago. The reserve ratio at the time of the 

prior DIF balance record—March 31, 2008—was 1.19 

percent. Although the third quarter DIF balance was at 

a new record level, this did not equate to a reserve ratio 

higher than at the March 2008 level due to the increase 

in the insurance coverage limit and regular deposit 

growth. The first quarter 2008 DIF balance covered 

estimated insured deposits of $4.4 trillion, compared to 

$6.1 trillion in deposits as of the third quarter.

Effective April 1, 2011, the deposit insurance assessment base changed to average consolidated total assets 

minus average tangible equity.4 Revisions to insurance 

assessment rates and risk-based pricing rules for large 

banks (banks with assets greater than $10 billion) also 

became effective on that date.5 Table 1 shows the distribution of the assessment base as of September 30, by 

institution asset size category.

Dodd-Frank requires that, for at least five years, the 

FDIC must make available to the public the reserve 

ratio and the DRR using both estimated insured deposits and the new assessment base. As of September 30, 

4

 There is an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under Dodd-Frank.

5

 The Fourth Quarter 2010 Quarterly Banking Profile includes a more 

detailed explanation of these changes.

■ DIF Reserve Ratio Rises 5 Basis Points to 0.89 Percent

■ Insured Deposits Increase by 0.4 Percent

■ Two Institutions Fail During Third Quarter

INSURANCE FUND INDICATORS
FDIC Quarterly 23 2014, Volume 8, No. 4

Quarterly Banking Profile

2014, the FDIC reserve ratio would have been 0.41 

percent using the new assessment base (compared to 

0.89 percent using estimated insured deposits), and the 

2 percent DRR using estimated insured deposits would 

have been 0.94 percent using the new assessment base.

Author: Kevin Brown, Senior Financial Analyst

Division of Insurance and Research

(202) 898-6817

Table 1

Distribution of the Assessment Base for FDIC-Insured Institutions* 

by Asset Size

Data as of September 30, 2014

Asset Size

Number of 

Institutions

Percent of 

Total Institutions

Assessment Base** 

($ Bil.)

Percent of 

Base

Less Than $1 Billion 5,906 89.6 $1,187.1 9.1 

$1 - $10 Billion 575 8.7 1,371.7 10.5 

$10 - $50 Billion 72 1.1 1,412.1 10.8 

$50 - $100 Billion 12 0.2 801.1 6.1 

Over $100 Billion 24 0.4 8,290.9 63.5 

Total 6,589 100.0 13,062.8 100.0 

* Excludes insured U.S. branches of foreign banks.

** Average consolidated total assets minus average tangible equity, with adjustments for banker’s banks and custodial banks.
FDIC Quarterly 24 2014, Volume 8, No. 4

DIF Reserve Ratios

Percent of Insured Deposits

0.12

0.17

0.22

0.32 0.35

0.45

0.60

0.64

0.68

0.79 0.80

0.84

0.89

9/11 3/12 9/12 3/13 9/13 3/14 9/14

Table I-C. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

3rd 

Quarter 

2014

2nd 

Quarter 

2014

1st 

Quarter 

2014

4th 

Quarter 

2013

3rd 

Quarter 

2013

2nd 

Quarter 

2013

1st 

Quarter 

2013

4th 

Quarter 

2012

3rd 

Quarter 

2012

2nd 

Quarter 

2012

1st 

Quarter 

2012

4th 

Quarter 

2011

3rd 

Quarter 

2011

Beginning Fund Balance ... $51,059 $48,893 $47,191 $40,758 $37,871 $35,742 $32,958 $25,224 $22,693 $15,292 $11,827 $7,813 $3,916

Changes in Fund Balance:

Assessments earned .......... 2,009 2,224 2,393 2,224 2,339 2,526 2,645 2,937 2,833 2,933 3,694 3,209 3,642

Interest earned on 

investment securities ...... 80 87 45 23 34 54 -9 66 -8 81 20 33 30

Realized gain on sale of

investments...................... 0 0 0 302 156 0 0 0 0 0 0 0 0

Operating expenses ........... 406 428 422 436 298 439 436 469 442 407 460 334 433

Provision for insurance 

losses .............................. -1,663 -204 348 -4,588 -539 -33 -499 -3,344 -84 -807 12 1,533 -763

All other income, 

net of expenses ............... 6 6 9 9 46 51 55 1,878 57 4,095 63 2,599 83

Unrealized gain/(loss) on 

available-for-sale 

securities ......................... -91 73 25 -277 71 -96 30 -22 7 -108 160 40 -188

Total fund balance change ... 3,261 2,166 1,702 6,433 2,887 2,129 2,784 7,734 2,531 7,401 3,465 4,014 3,897

Ending Fund Balance ....... 54,320 51,059 48,893 47,191 40,758 37,871 35,742 32,958 25,224 22,693 15,292 11,827 7,813

Percent change from 

 four quarters earlier ....... 33.27 34.82 36.79 43.19 61.58 66.88 133.73 178.67 222.85 479.4

Reserve Ratio (%) ............. 0.89 0.84 0.80 0.79 0.68 0.64 0.60 0.45 0.35 0.32 0

Estimated Insured 

Deposits** .......................... 6,131,924 6,110,124 6,120,679 6,010,853 5,967,558 5,951,124 5,999,614 7,405,042 7,248,466 7,081,206 7,031,331 6,973,468 6,754,060

Percent change from 

 four quarters earlier ....... 2.75 2.67 2.02 -18.83 -17.67 -15.96 -14.67 6.19 7.32 8.55 10.2

Domestic Deposits ........... 10,213,077 10,099,340 9,962,453 9,825,398 9,630,462 9,424,504 9,454,659 9,474,585 9,084,803 8,937,725 8,848,706 8,782,134 8,526,713

Percent change from 

 four quarters earlier ....... 6.05 7.16 5.37 3.70 6.01 5.45 6.85 7.88 6.55 8.40 10.

Number of Institutions 

Reporting ....................... 6,598 6,665 6,739 6,821 6,900 6,949 7,028 7,092 7,190 7,254 7,317 7,366 7,446

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

9/11 $7,813 $6,754,060

12/11 11,827 6,973,468

3/12 15,292 7,031,331

6/12 22,693 7,081,206

9/12 25,224 7,248,466

12/12 32,958 7,405,042

3/13 35,742 5,999,614

6/13 37,871 5,951,124

9/13 40,758 5,967,558

12/13 47,191 6,010,853

3/14 48,893 6,120,679

6/14 51,059 6,110,124

9/14 54,320 6,131,924

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

(dollar figures in millions) 2014*** 2013*** 2013 2012 2011 2010 2009

Problem Institutions

Number of institutions �������������������������������������������������� 329 515 467 651 813 884 702

Total assets������������������������������������������������������������������� $102,257 $174,188 $152,687 $232,701 $319,432 $390,017 $402,782

Failed Institutions

Number of institutions �������������������������������������������������� 14 22 24 51 92 157 140

Total assets ������������������������������������������������������������� $1,816 $5,860 $6,044 $11,617 $34,923 $92,085 $169,709

Assisted Institutions** ***

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

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

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

** Beginning in the third quarter of 2009, estimates of insured deposits are based on a $250,000 general coverage limit. The Dodd-Frank Wall Street Reform and Consumer Protection Act

(Dodd-Frank) temporarily provided unlimited coverage for noninterest-bearing transaction accounts for two years beginning December 31, 2010, and ending December 31, 2012

*** Through September 30

  Total assets are based on final Call Reports submitted by failed institutions

** *** Assisted institutions represent eight institutions under a single holding company that received assistance in 2009
FDIC Quarterly 25 2014, Volume 8, No. 4

Quarterly Banking Profile

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

(dollar figures in millions) 

September 30, 2014

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks ����������������������������������������������� 5,705 $14,290,077 $9,365,169 $5,430,307

 FDIC-Supervised ������������������������������������������������������������������� 3,755 2,251,894 1,751,746 1,299,218

 OCC-Supervised�������������������������������������������������������������������� 1,092 9,846,015 6,163,473 3,401,370

 Federal Reserve-Supervised������������������������������������������������� 858 2,192,167 1,449,951 729,718

FDIC-Insured Savings Institutions ���������������������������������������������� 884 1,059,094 807,534 672,153

 OCC-Supervised Savings Institutions ����������������������������������� 462 701,252 539,670 454,218

 FDIC-Supervised Savings Institutions����������������������������������� 422 357,843 267,865 217,936

Total Commercial Banks and Savings Institutions ���������������������� 6,589 15,349,171 10,172,703 6,102,460

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks ������������������������������������������������� 9 109,964 40,373 29,4

Total FDIC-Insured Institutions���������������������������������������������������� . 6,598 15,459,135 10,213,077 6,131,9

* Excludes $1.4 trillion in foreign office deposits, which are not FDIC insure

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range

Quarter Ending June 30, 2014 (dollar figures in billions)

Annual Rate in Basis Points

Number of 

Institutions

Percent of Total 

Institutions

Amount of 

Assessment Base*

Percent of Total 

Assessment Base

2.50-5.00 1,423 21.35 $2,871 2

5.01-7.50 2,996 44.95 7,955 6

7.51-10.00 1,288 19.32 1,438 1

10.01-15.00 572 8.58 410 

15.01-20.00 33 0.50 118 

 20.01-25.00 286 4.29 73 

 25.01-30.00 8 0.12 10 

 30.01-35.00 56 0.84 22 

greater than 35.00 3 0.05 9 0

* Beginning in the second quarter of 2011, the assessment base was changed to average consolidated total assets minus tangible equity, as 

required by the Dodd-Frank Act
FDIC Quarterly 26 2014, Volume 8, No. 4

The fourth step includes organizations that operate within a 

limited geographic scope. This limitation of scope is used as a 

proxy measure for a bank’s relationship approach to banking. 

Banks that operate within a limited market area have more 

ease in managing relationships at a personal level. Under this 

step, four criteria are applied to each banking organization. 

They include both a minimum and maximum number of total 

banking offices, a maximum level of deposits for any one 

office, and location-based criteria. The limits on the number 

of and deposits per office are gradually adjusted upward over 

time. For banking offices, banks must have more than one 

office, and the maximum number of offices starts at 40 in 1985 

and reaches 75 in 2010. The maximum level of deposits for 

any one office is $1.25 billion in deposits in 1985 and $5 billion in deposits in 2010. The remaining geographic limitations 

are also based on maximums for the number of states (fixed at 

3) and large metropolitan areas (fixed at 2) in which the organization maintains offices. Branch office data are based on the 

most recent data from the annual June 30 Summary of Deposits 

Survey that are available at the time of publication.

Finally, the definition establishes an asset-size limit, also 

adjusted upward over time from $250 million in 1985 to 

$1 billion in 2010, below which the limits on banking activities and geographic scope are waived. This final step acknowledges the fact that most of those small banks that are not 

excluded as specialty banks meet the requirements for banking activities and geographic limits in any event.

Summary of FDIC Research Definition of Community 

Banking Organizations

Community banks are designated at the level of the banking.

(All charters under designated holding companies are considered community banking charters.)

Exclude: Any organization with:

— No loans or no core deposits

— Foreign Assets ≥ 10% of total assets

— More than 50% of assets in certain specialty banks, 

including:

• credit card specialists

• consumer nonbank banks1

• industrial loan companies

• trust companies

• bankers’ banks 

Include: All remaining banking organizations with:

— Total assets < indexed size threshold 

2

— Total assets ≥ indexed size threshold, where:

• Loan to assets > 33%

• Core deposits to assets > 50%

• More than 1 office but no more than the indexed 

maximum number of offices.3

1

 Consumer nonbank banks are financial institutions with limited charters that can make commercial loans or take deposits, but not both.

2

 Asset size threshold indexed to equal $250 million in 1985 and 

$1 billion in 2010.

3

 Maximum number of offices indexed to equal 40 in 1985 and 75 

in 2010.

Notes to Users

This publication contains financial data and other information for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding 

the comparability of source data and reporting differences 

over time.

Tables I-A through VIII-A.

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

the FDIC Quarterly Banking Profile is aggregated for all FDICinsured institutions, both commercial banks and savings institutions. Tables VI-A (Derivatives) and VII-A (Servicing, 

Securitization, and Asset Sales Activities) aggregate information only for insured commercial banks and state-chartered 

savings banks that file quarterly Call Reports. Table VIII-A 

(Trust Services) aggregates Trust asset and income information collected annually from all FDIC-insured institutions. 

Some tables are arrayed by groups of FDIC-insured institutions based on predominant types of asset concentration, 

while other tables aggregate institutions by asset size and 

geographic region. Quarterly and full-year data are provided 

for selected indicators, including aggregate condition and 

income data, performance ratios, condition ratios, and structural changes, as well as past due, noncurrent, and charge-off 

information for loans outstanding and other assets.

Tables I-B through VI-B.

The information presented in Tables I-B through VI-B is 

aggregated for all FDIC-insured commercial banks and savings 

institutions meeting the criteria for community banks that 

were developed for the FDIC’s Community Banking Study, 

published in December, 2012: http://fdic.gov/regulations/

resources/cbi/report/cbi-full.pdf. 

The determination of which insured institutions are considered community banks is based on five steps.

The first step in defining a community bank is to aggregate 

all charter-level data reported under each holding company 

into a single banking organization. This aggregation applies 

both to balance-sheet measures and the number and location 

of banking offices. Under the FDIC definition, if the banking 

organization is designated as a community bank, every charter reporting under that organization is also considered a 

community bank when working with data at the charter 

level. 

The second step is to exclude any banking organization 

where more than 50 percent of total assets are held in certain 

specialty banking charters, including: credit card specialists, 

consumer nonbank banks, industrial loan companies, trust companies, bankers’ banks, and banks holding 10 percent or more 

of total assets in foreign offices. 

Once the specialty organizations are removed, the third step 

involves including organizations that engage in basic banking 

activities as measured by the total loans-to-assets ratio (greater than 33 percent) and the ratio of core deposits to assets 

(greater than 50 percent). Core deposits are defined as nonbrokered deposits in domestic offices. Analysis of the underlying data shows that these thresholds establish meaningful 

levels of basic lending and deposit gathering and still allow 

for a degree of diversity in how individual banks construct 

their balance sheets.
FDIC Quarterly 27 2014, Volume 8, No. 4

Quarterly Banking Profile

• Number of large MSAs with offices ≤ 2

• Number of states with offices ≤ 3

• No single office with deposits > indexed maximum 

branch deposit size.4

Tables I-C through IV-C.

A separate set of tables (Tables I-C through IV-C) provides 

comparative quarterly data related to the Deposit Insurance 

Fund (DIF), problem institutions, failed/assisted institutions, 

estimated FDIC-insured deposits, as well as assessment rate 

information. Depository institutions that are not insured by the 

FDIC through the DIF are not included in the FDIC Quarterly 

Banking Profile. U.S. branches of institutions headquartered in 

foreign countries and non-deposit trust companies are not 

included unless otherwise indicated. Efforts are made to obtain 

financial reports for all active institutions. However, in some 

cases, final financial reports are not available for institutions 

that have closed or converted their charters.

DATA SOURCES

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Consolidated Reports of 

Condition and Income (Call Reports) and the OTS Thrift 

Financial Reports submitted by all FDIC-insured depository 

institutions. (TFR filers began filing Call Reports effective 

with the quarter ending March 31, 2012.) This information is 

stored on and retrieved from the FDIC’s Research 

Information System (RIS) database.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, 

while their subsidiary financial institutions are still required 

to file separate reports. Data from subsidiary institution 

reports are included in the Quarterly Banking Profile tables, 

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

for any double-counting of subsidiary data. Additionally, 

certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting and 

accounting requirements of the FFIEC Call Reports. (TFR 

filers began filing Call Reports effective with the quarter ending March 31, 2012.)

All asset and liability figures used in calculating performance 

ratios represent average amounts for the period (beginning-ofperiod amount plus end-of-period amount plus any interim 

periods, divided by the total number of periods). For “poolingof-interest” mergers, the assets of the acquired institution(s) 

are included in average assets since the year-to-date income 

includes the results of all merged institutions. No adjustments 

are made for “purchase accounting” mergers. Growth rates 

represent the percentage change over a 12-month period in 

totals for institutions in the base period to totals for institutions in the current period. For the community bank subgroup, growth rates will reflect changes over time in the 

number and identities of institutions designated as community banks, as well as changes in the assets and liabilities, and 

income and expenses of group members. Unless indicated 

otherwise, growth rates are not adjusted for mergers or other 

changes in the composition of the community bank subgroup.

4

 Maximum branch deposit size indexed to equal $1.25 billion in 1985 

and $5 billion in 2010.

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

Private Company Accounting Alternatives, Including Accounting 

for Goodwill 

On January 16, 2014, the FASB issued Accounting Standards 

Update (ASU) No. 2014-02, “Accounting for Goodwill.” This 

ASU generally permits a private company to elect to amortize 

goodwill on a straight-line basis over a period of ten years (or 

less than ten years if more appropriate) and apply a simplified 

impairment model to goodwill. In addition, if a private company chooses to adopt the ASU’s goodwill accounting alternative, the ASU requires the private company to make an 

accounting policy election to test goodwill for impairment at 

either the entity level or the reporting unit level. Goodwill 

must be tested for impairment when a triggering event occurs 

that indicates that the fair value of an entity (or a reporting 

unit) may be below its carrying amount. In contrast, existing 

U.S. GAAP does not permit goodwill to be amortized, instead 

requiring goodwill to be tested for impairment at the reporting 

unit level annually and between annual tests in certain circumstances. The ASU’s goodwill accounting alternative, if 

elected by a private company, is effective prospectively for 

new goodwill recognized in annual periods beginning after 

December 15, 2014, and in interim periods within annual 

periods beginning after December 15, 2015. Goodwill existing 

as of the beginning of the period of adoption is to be amortized prospectively over ten years (or less than ten years if 

more appropriate). The ASU states that early application of 

the goodwill accounting alternative is permitted for any annual or interim period for which a private company’s financial 

statements have not yet been made available for issuance. 

A bank or savings association that meets the private company 

definition in ASU 2014-02 is permitted, but not required, to 

adopt this ASU for Call Report purposes and may choose to 

early adopt the ASU. For example, a calendar year private 

institution could begin to apply the provisions of ASU 2014-

02 in its Call Report for September 30, 2014, in which case it 

would report nine months’ amortization of goodwill existing 

as of January 1, 2014, and the amortization of any new goodwill recognized in the first nine months of 2014. Goodwill 

amortization expense should be reported unless the amortization is associated with a discontinued operation, in which 

case the goodwill amortization should be included within the 

results of discontinued as “Extraordinary items and other 

adjustments, net of income taxes.”

For additional information on the private company accounting alternative for goodwill, institutions should refer to ASU 

2014-02, which is available at http://www.fasb.org/jsp/FASB/

Page/SectionPage&cid=1176156316498. 

Definitions of Private Company and Public Business Entity 

According to ASU No. 2014-02, “Accounting for Goodwill,” 

a private company is a business entity that is not a public 
FDIC Quarterly 28 2014, Volume 8, No. 4

Reclassification of Residential Real Estate Collateralized Consumer 

Mortgage Loans Upon Foreclosure

In January 2014, the FASB issued Accounting Standards 

Update (ASU) No. 2014-04, “Reclassification of Residential 

Real Estate Collateralized Consumer Mortgage Loans upon 

Foreclosure,” to address diversity in practice for when certain 

loan receivables should be derecognized and the real estate 

collateral recognized. The ASU updated guidance contained 

in Accounting Standards Codification Subtopic 310-40, 

Receivables–Troubled Debt Restructurings by Creditors (formerly FASB Statement No.15, “Accounting by Debtors and 

Creditors for Troubled Debt Restructurings,” as amended).

Under prior accounting guidance, all loan receivables were 

reclassified to other real estate owned (OREO) when the 

institution, as creditor, obtained physical possession of the 

property, regardless of whether formal foreclosure proceedings 

had taken place. The new ASU clarifies when a creditor is 

considered to have received physical possession (resulting 

from an in-substance repossession or foreclosure) of residential 

real estate collateralizing a consumer mortgage loan. Under 

the new guidance, physical possession for these residential real 

estate properties is considered to have occurred and a loan 

receivable would be reclassified to OREO only upon:

— The institution obtaining legal title upon completion of a 

foreclosure even if the borrower has redemption rights that 

provide the borrower with a legal right for a period of time 

after foreclosure to reclaim the property by paying certain 

amounts specified by law, or

— The completion of a deed in lieu of foreclosure or similar 

legal agreement under which the borrower conveys all 

interest in the residential real estate property to the institution to satisfy the loan.

Loans secured by real estate other than consumer mortgage 

loans collateralized by residential real estate should continue 

to be reclassified to OREO when the institution has received 

physical possession of a borrower’s real estate, regardless of 

whether formal foreclosure proceedings take place.

For institutions that are public business entities, as defined 

under U.S. generally accepted accounting principles, ASU 

2014-04 is effective for fiscal years, and interim periods within 

those fiscal years, beginning after December 15, 2014. For 

example, institutions with a calendar year fiscal year that are 

public business entities must apply the ASU in their Call 

Reports beginning March 31, 2015. However, institutions 

that are not public business entities are not required to apply 

the guidance in ASU 2014-04 until annual periods beginning 

after December 15, 2014, and interim periods within annual 

periods beginning after December 15, 2015. Thus, institutions 

with a calendar year fiscal year that are not public business 

entities must apply the ASU in their December 31, 2015, and 

subsequent quarterly Call Reports. Earlier adoption of the 

guidance in ASU 2014-04 is permitted. Entities can elect to 

apply the ASU on either a modified retrospective transition 

basis or a prospective transition basis. Applying the ASU on a 

prospective transition basis should be less complex for institutions than applying the ASU on a modified retrospective transition basis. Under the prospective transition method, an 

institution should apply the new guidance to all instances 

where it receives physical possession of residential real estate 

property collateralizing consumer mortgage loans that occur 

after the date of adoption of the ASU. Under the modified 

business entity. ASU No. 2013-12, “Definition of a Public 

Business Entity,” which was issued in December 2013, added 

this term to the Master Glossary in the Accounting Standards 

Codification. This ASU states that a business entity, such as 

bank or savings association, that meets any one of five criteria 

set forth in the ASU is a public business entity for reporting 

purposes under U.S. GAAP, including for Call Report purposes. An institution that is a public business entity is not 

permitted to apply the private company goodwill accounting 

alternative discussed in the preceding section when preparing 

its Call Report.

For additional information on the definition of a public business entity, institutions should refer to ASU 2013-12, which 

is available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498.

Reporting Certain Government-Guaranteed Mortgage Loans 

Upon Foreclosure 

In August 2014, the FASB issued Accounting Standards 

Update (ASU) No. 2014-14, “Classification of Certain 

Government-Guaranteed Mortgage Loans Upon Foreclosure,” 

to address diversity in practice for how government-guaranteed mortgage loans are recorded upon foreclosure. The ASU 

updates guidance contained in ASC Subtopic 310-40, 

Receivables—Troubled Debt Restructurings by Creditors (formerly FASB Statement No. 15, “Accounting by Debtors and 

Creditors for Troubled Debt Restructurings,” as amended), 

because U.S. GAAP previously did not provide specific guidance on how to categorize or measure foreclosed mortgage 

loans that are government guaranteed. 

This guidance is applicable to fully and partially governmentguaranteed mortgage loans. Upon foreclosure, the separate 

other receivable should be measured based on the amount of 

the loan balance (principal and interest) expected to be 

recovered from the guarantor. This other receivable should be 

reported in “All other assets.” Any interest income earned on 

the other receivable would be reported in “Other interest 

income.” Other real estate owned would not be recognized by 

the institution. 

For institutions that are public business entities, as defined 

under U.S. GAAP, ASU 2014-14 is effective for fiscal years, 

and interim periods within those fiscal years, beginning after 

December 15, 2014. For example, institutions with a calendar year fiscal year that are public business entities must 

apply the ASU in their Call Reports beginning March 31, 

2015. However, institutions that are not public business entities (i.e., that are private companies) are not required to 

apply the guidance in ASU 2014-14 until annual periods 

ending after December 15, 2015, and interim periods beginning after December 15, 2015. Thus, institutions with a calendar year fiscal year that are private companies must apply 

the ASU in their December 31, 2015, and subsequent quarterly Call Reports. Earlier adoption of the guidance in ASU 

2014-14 is permitted if the institution has already adopted 

the amendments in ASU No. 2014-04, “Reclassification of 

Residential Real Estate Collateralized Consumer Mortgage 

Loans Upon Foreclosure.” Entities can elect to apply ASU 

2014-14 on either a modified retrospective transition basis or 

a prospective transition basis. For additional information, 

institutions should refer to ASU 2014-14, which is available 

at http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=

1176156316498. 
FDIC Quarterly 29 2014, Volume 8, No. 4

Quarterly Banking Profile

a Result of a Government-Assisted Acquisition of a Financial 

Institution,” to address the subsequent measurement of an 

indemnification asset recognized in an acquisition of a financial institution that includes an FDIC loss-sharing agreement. 

This ASU amends ASC Topic 805, Business Combinations 

(formerly FASB Statement No. 141 (revised 2007),”Business 

Combinations”), which includes guidance applicable to FDICassisted acquisitions of failed institutions.

Under the ASU, when an institution experiences a change in 

the cash flows expected to be collected on an FDIC loss-sharing indemnification asset because of a change in the cash 

flows expected to be collected on the assets covered by the 

loss-sharing agreement, the institution should account for the 

change in the measurement of the indemnification asset on 

the same basis as the change in the assets subject to indemnification. Any amortization of changes in the value of the 

indemnification asset should be limited to the lesser of the 

term of the indemnification agreement and the remaining life 

of the indemnified assets.

The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2012. 

For institutions with a calendar year fiscal year, the ASU takes 

effect January 1, 2013. Early adoption of the ASU is permitted. 

The ASU’s provisions should be applied prospectively to any 

new indemnification assets acquired after the date of adoption 

and to indemnification assets existing as of the date of adoption arising from an FDIC-assisted acquisition of a financial 

institution. Institutions with indemnification assets arising 

from FDIC loss-sharing agreements are expected to adopt ASU 

2012-06 for Call Report purposes in accordance with the effective date of this standard. For additional information, refer to 

ASU 2012-06, available at http://www.fasb.org/jsp/FASB/

Page/SectionPage&cid=1176156316498.

Goodwill Impairment Testing – In September 2011, the FASB 

issued Accounting Standards Update (ASU) No. 2011-08, 

“Testing Goodwill for Impairment,” to address concerns about 

the cost and complexity of the existing goodwill impairment 

test in ASC Topic 350, Intangibles-Goodwill and Other 

(formerly FASB Statement No. 142, “Goodwill and Other 

Intangible Assets”). The ASU’s amendments to ASC 

Topic 350 are effective for annual and interim goodwill 

impairment tests performed for fiscal years beginning after 

December 15, 2011 (i.e., for annual or interim tests performed 

on or after January 1, 2012, for institutions with a calendar 

year fiscal year). Early adoption of the ASU was permitted. 

Under ASU 2011-08, an institution has the option of first 

assessing qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test described in ASC Topic 350. If, after considering 

all relevant events and circumstances, an institution determines it is unlikely (that is, a likelihood of 50 percent or less) 

that the fair value of a reporting unit is less than its carrying 

amount (including goodwill), then the institution does not 

need to perform the two-step goodwill impairment test. If the 

institution instead concludes that the opposite is true (that is, 

it is likely that the fair value of a reporting unit is less than its 

carrying amount), then it is required to perform the first step 

and, if necessary, the second step of the two-step goodwill 

impairment test. Under ASU 2011-08, an institution may 

choose to bypass the qualitative assessment for any reporting 

unit in any period and proceed directly to performing the first 

step of the two-step goodwill impairment test.

retrospective transition method, an institution should apply a 

cumulative-effect adjustment to residential consumer mortgage 

loans and OREO existing as of the beginning of the annual 

period for which the ASU is effective. As a result of adopting 

the ASU on a modified retrospective basis, assets reclassified 

from OREO to loans should be measured at the carrying value 

of the real estate at the date of adoption while assets reclassified from loans to OREO should be measured at the lower of 

the net amount of the loan receivable or the OREO property’s 

fair value less costs to sell at the time of adoption.

For additional information, institutions should refer to ASU 

2014-04, which is available at http://www.fasb.org/jsp/FASB/

Page/SectionPage&cid=1176156316498.

True-Up Liability Under an FDIC Loss-Sharing Agreement 

An insured depository institution that acquires a failed 

insured institution may enter into a loss-sharing agreement 

with the FDIC under which the FDIC agrees to absorb a portion of the losses on a specified pool of the failed institution’s 

assets during a specified time period. The acquiring institution 

typically records an indemnification asset representing its 

right to receive payments from the FDIC for losses during the 

specified time period on assets covered under the loss-sharing 

agreement. 

Since 2009, most loss-sharing agreements have included a 

true-up provision that may require the acquiring institution 

to reimburse the FDIC if cumulative losses in the acquired 

loss-share portfolio are less than the amount of losses claimed 

by the institution throughout the loss-sharing period. 

Typically, a true-up liability may result because the recovery 

period on the loss-share assets (e.g., eight years) is longer 

than the period during which the FDIC agrees to reimburse 

the acquiring institution for losses on the loss-share portfolio 

(e.g., five years). 

Consistent with U.S. GAAP and bank guidance for 

“Offsetting,” institutions are permitted to offset assets and liabilities recognized in the Report of Condition when a “right 

of setoff” exists. Under ASC Subtopic 210-20, Balance 

Sheet—Offsetting (formerly FASB Interpretation No. 39, 

“Offsetting of Amounts Related to Certain Contracts”), in 

general, a right of setoff exists when a reporting institution 

and another party each owes the other determinable amounts, 

the reporting institution has the right to set off the amounts 

each party owes and also intends to set off, and the right of 

setoff is enforceable at law. Because the conditions for the 

existence of a right of offset in ASC Subtopic 210-20 normally would not be met with respect to an indemnification asset 

and a true-up liability under a loss-sharing agreement with 

the FDIC, this asset and liability should not be netted for Call 

Report purposes. Therefore, institutions should report the 

indemnification asset gross (i.e., without regard to any true-up 

liability) in Other Assets, and any true-up liability in Other 

Liabilities. 

In addition, an institution should not continue to report 

assets covered by loss-sharing agreements after the expiration 

of the loss-sharing period even if the terms of the loss-sharing 

agreement require reimbursements from the institution to the 

FDIC for certain amounts during the recovery period.

Indemnification Assets and Accounting Standards Update No. 2012-

06 – In October 2012, the FASB issued Accounting Standards 

Update (ASU) No. 2012-06, “Subsequent Accounting for an 

Indemnification Asset Recognized at the Acquisition Date as 
FDIC Quarterly 30 2014, Volume 8, No. 4

forming TDR loan, if it is in compliance with its modified 

terms. If a TDR is not in compliance with its modified terms, 

it is reported as a past-due and nonaccrual loan in the appropriate loan category, as well as distinguished from other past 

due and nonaccrual loans. To be considered in compliance 

with its modified terms, a loan that is a TDR must not be in 

nonaccrual status and must be current or less than 30 days past 

due on its contractual principal and interest payments under 

the modified repayment terms. A loan restructured in a TDR 

is an impaired loan. Thus, all TDRs must be measured for 

impairment in accordance with ASC Subtopic 310-10, 

Receivables – Overall (formerly FASB Statement No. 114, 

“Accounting by Creditors for Impairment of a Loan,” as 

amended), and the Call Report Glossary entry for “Loan 

Impairment.” Consistent with ASC Subtopic 310-10, TDRs 

may be aggregated and measured for impairment with other 

impaired loans that share common risk characteristics by using 

historical statistics, such as average recovery period and 

average amount recovered, along with a composite effective 

interest rate. The outcome of such an aggregation approach 

must be consistent with the impairment measurement methods prescribed in ASC Subtopic 310-10 and Call Report 

instructions for loans that are “individually” considered 

impaired instead of the measurement method prescribed in 

ASC Subtopic 450-20, Contingencies – Loss Contingencies 

(formerly FASB Statement No. 5, “Accounting for Contingencies”) for loans not individually considered impaired that 

are collectively evaluated for impairment. When a loan not 

previously considered individually impaired is restructured and 

determined to be a TDR, absent a partial charge-off, it generally is not appropriate for the impairment estimate on the loan 

to decline as a result of the change from the impairment measurement method prescribed in ASC Subtopic 450-20 to the 

methods prescribed in ASC Subtopic 310-10.

Troubled Debt Restructurings and Accounting Standards Update 

No. 2011-02 – In April 2011, the FASB issued Accounting 

Standards Update (ASU) No. 2011-02, “A Creditor’s 

Determination of Whether a Restructuring Is a Troubled 

Debt Restructuring,” to provide additional guidance to help 

creditors determine whether a concession has been granted to 

a borrower and whether a borrower is experiencing financial 

difficulties. The guidance is also intended to reduce diversity 

in practice in identifying and reporting TDRs. This ASU was 

effective for public companies for interim and annual periods 

beginning on or after June 15, 2011, and should have been 

applied retrospectively to the beginning of the annual period 

of adoption for purposes of identifying TDRs. The measurement of impairment for any newly identified TDRs resulting 

from retrospective application should have been applied prospectively in the first interim or annual period beginning on 

or after June 15, 2011. (For most public institutions, the ASU 

takes effect July 1, 2011, but retrospective application begins 

as of January 1, 2011.) Nonpublic companies should apply the 

new guidance for annual periods ending after December 15, 

2012, including interim periods within those annual periods. 

(For most nonpublic institutions, the ASU took effect 

January 1, 2012.) Early adoption of the ASU was permitted 

for both public and nonpublic entities. Nonpublic entities 

that adopt early are subject to a retrospective identification 

requirement. For additional information, refer to ASU 2011-

02, available at http://www.fasb.org/jsp/FASB/Page/

SectionPage&cid=1176156316498.

Extended Net Operating Loss Carryback Period – The Worker, 

Homeownership, and Business Assistance Act of 2009, which 

was enacted on November 6, 2009, permits banks and other 

businesses, excluding those banking organizations that 

received capital from the U.S. Treasury under the Troubled 

Asset Relief Program, to elect a net operating loss carryback 

period of three, four, or five years instead of the usual carryback period of two years for any one tax year ending after 

December 31, 2007, and beginning before January 1, 2010. 

For calendar-year banks, this extended carryback period 

applies to either the 2008 or 2009 tax year. The amount of 

the net operating loss that can be carried back to the fifth 

carryback year is limited to 50 percent of the available taxable income for that fifth year, but this limit does not apply to 

other carryback years.

Under generally accepted accounting principles, banks may 

not record the effects of this tax change in their balance 

sheets and income statements for financial and regulatory 

reporting purposes until the period in which the law was 

enacted, i.e., the fourth quarter of 2009. Therefore, banks 

should recognize the effects of this fourth quarter 2009 tax 

law change on their current and deferred tax assets and liabilities, including valuation allowances for deferred tax assets, in 

their Call Reports for December 31, 2009. Banks should not 

amend their Call Reports for prior quarters for the effects of 

the extended net operating loss carryback period.

The American Recovery and Reinvestment Act of 2009, 

which was enacted on February 17, 2009, permits qualifying 

small businesses, including FDIC-insured institutions, to elect 

a net operating loss carryback period of three, four, or five 

years instead of the usual carryback period of two years for 

any tax year ending in 2008 or, at the small business’s election, any tax year beginning in 2008. Under generally 

accepted accounting principles, institutions may not record 

the effect of this tax change in their balance sheets and 

income statements for financial and regulatory reporting 

purposes until the period in which the law was enacted, i.e., 

the first quarter of 2009.

Troubled Debt Restructurings and Current Market Interest Rates – 

Many institutions are restructuring or modifying the terms of 

loans to provide payment relief for those borrowers who have 

suffered deterioration in their financial condition. Such loan 

restructurings may include, but are not limited to, reductions 

in principal or accrued interest, reductions in interest rates, 

and extensions of the maturity date. Modifications may be 

executed at the original contractual interest rate on the loan, 

a current market interest rate, or a below-market interest rate. 

Many of these loan modifications meet the definition of a 

troubled debt restructuring (TDR).

The TDR accounting and reporting standards are set forth 

in ASC Subtopic 310-40, Receivables – Troubled Debt 

Restructurings by Creditors (formerly FASB Statement 

No. 15, “Accounting by Debtors and Creditors for Troubled 

Debt Restructurings,” as amended). This guidance specifies 

that a restructuring of a debt constitutes a TDR if, at the date 

of restructuring, the creditor for economic or legal reasons 

related to a debtor’s financial difficulties grants a concession 

to the debtor that it would not otherwise consider.

In the Call Report, until a loan that is a TDR is paid in full or 

otherwise settled, sold, or charged off, it must be reported in 

the appropriate loan category, as well as identified as a per-
FDIC Quarterly 31 2014, Volume 8, No. 4

Quarterly Banking Profile

interim and annual reporting periods thereafter (i.e., as of 

January 1, 2010, for banks with a calendar year fiscal year). 

Earlier application is prohibited. Banks are expected to adopt 

FAS 166 and FAS 167 for Call Report purposes in accordance with the effective date of these two standards. Also, 

FAS 166 has modified the criteria that must be met in order 

for a transfer of a portion of a financial asset, such as a loan 

participation, to qualify for sale accounting. These changes 

apply to transfers of loan participations on or after the effective date of FAS 166. Therefore, banks with a calendar year 

fiscal year must account for transfers of loan participations on 

or after January 1, 2010, in accordance with FAS 166. In general, loan participations transferred before the effective date 

of FAS 166 (January 1, 2010, for calendar year banks) are not 

affected by this new accounting standard and pre-FAS 166 

participations that were properly accounted for as sales under 

FASB Statement No. 140 will continue to be reported as 

having been sold.

Accounting Standards Codification – refer to previously published Quarterly Banking Profile notes: http://www2.fdic.

gov/qbp/2011sep/qbpnot.html.

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

estate, investment in unconsolidated subsidiaries, customers’ 

liability on acceptances outstanding, assets held in trading 

accounts, federal funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid 

deposit insurance assessments, and other assets.

All other liabilities – bank’s liability on acceptances, limited-life 

preferred stock, allowance for estimated off-balance-sheet credit losses, fair market value of derivatives, and other liabilities.

Assessment base – effective April 1, 2011, the deposit insurance assessment base has changed to “average consolidated 

total assets minus average tangible equity” with an additional 

adjustment to the assessment base for banker’s banks and custodial banks, as permitted under Dodd-Frank. Previously the 

assessment base was “assessable deposits” and consisted of DIF 

deposits (deposits insured by the FDIC Deposit Insurance 

Fund) in banks’ domestic offices with certain adjustments.

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other 

seller- provided credit enhancements.

Capital Purchase Program (CPP) – as announced in October 

2008 under the TARP, the Treasury Department purchase of 

noncumulative perpetual preferred stock and related warrants 

that is treated as Tier 1 capital for regulatory capital purposes 

is included in “Total equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued 

by publicly-traded banks are reflected as well in “Surplus.” 

Warrants to purchase common stock or noncumulative preferred stock of not-publicly-traded bank stock are classified in 

a bank’s balance sheet as “Other liabilities.”

Construction and development loans – includes loans for all 

property types under construction, as well as loans for land 

acquisition and development.

Core capital – common equity capital plus noncumulative perpetual preferred stock plus minority interest in consolidated 

subsidiaries, less goodwill and other ineligible intangible 

Accounting for Loan Participations – Amended ASC Topic 860 

(formerly FAS 166) modified the criteria that must be met in 

order for a transfer of a portion of a financial asset, such as a 

loan participation, to qualify for sale accounting. These 

changes apply to transfers of loan participations on or after 

the effective date of amended ASC Topic 860 (January 1, 

2010, for banks with calendar year fiscal year), including 

advances under lines of credit that are transferred on or after 

the effective date of amended ASC Topic 860 even if the line 

of credit agreements were entered into before this effective 

date. Therefore, banks with a calendar-year fiscal year must 

account for transfers of loan participations on or after January 

1, 2010, in accordance with amended ASC Topic 860. In 

general, loan participations transferred before the effective 

date of amended ASC Topic 860 are not affected by this new 

accounting standard.

Under amended ASC Topic 860, if a transfer of a portion of 

an entire financial asset meets the definition of a “participating interest,” then the transferor (normally the lead lender) 

must evaluate whether the transfer meets all of the conditions 

in this accounting standard to qualify for sale accounting.

Other-Than-Temporary Impairment – When the fair value of an 

investment in an individual available-for-sale or held-tomaturity security is less than its cost basis, the impairment is 

either temporary or other-than-temporary. The amount of the 

total other-than-temporary impairment related to credit loss 

must be recognized in earnings, but the amount of total 

impairment related to other factors must be recognized in 

other comprehensive income, net of applicable taxes. To 

determine whether the impairment is other-than-temporary, 

an institution must apply the applicable accounting guidance 

– refer to previously published Quarterly Banking Profile notes: 

http://www2.fdic.gov/qbp/2011mar/qbpnot.html.

ASC Topics 860 & 810 (formerly FASB Statements 166 & 167) – 

In June 2009, the FASB issued Statement No. 166, 

Accounting for Transfers of Financial Assets (FAS 166), and 

Statement No. 167, Amendments to FASB Interpretation 

No. 46(R) (FAS 167), which change the way entities account 

for securitizations and special purpose entities. FAS 166 

revised FASB Statement No. 140, Accounting for Transfers 

and Servicing of Financial Assets and Extinguishments of 

Liabilities, by eliminating the concept of a “qualifying specialpurpose entity,” creating the concept of a “participating interest,” changing the requirements for derecognizing financial 

assets, and requiring additional disclosures. FAS 167 revised 

FASB Interpretation No. 46(R), Consolidation of Variable 

Interest Entities, by changing how a bank or other company 

determines when an entity that is insufficiently capitalized or 

is not controlled through voting or similar rights, i.e., a “variable interest entity” (VIE), should be consolidated. Under 

FAS 167, a bank must perform a qualitative assessment to 

determine whether its variable interest or interests give it a 

controlling financial interest in a VIE. If a bank’s variable 

interest or interests provide it with the power to direct the 

most significant activities of the VIE, and the right to receive 

benefits or the obligation to absorb losses that could potentially be significant to the VIE, the bank is the primary beneficiary of, and therefore must consolidate, the VIE.

Both FAS 166 and FAS 167 take effect as of the beginning of 

each bank’s first annual reporting period that begins after 

November 15, 2009, for interim periods therein, and for 
FDIC Quarterly 32 2014, Volume 8, No. 4

Earning assets – all loans and other investments that earn 

interest or dividend income.

Efficiency ratio – Noninterest expense less amortization of 

intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net 

operating revenues that are absorbed by overhead expenses, 

so that a lower value indicates greater efficiency.

Estimated insured deposits – in general, insured deposits are 

total domestic deposits minus estimated uninsured deposits. 

Beginning March 31, 2008, for institutions that file Call 

Reports, insured deposits are total assessable deposits minus 

estimated uninsured deposits. Beginning September 30, 2009, 

insured deposits include deposits in accounts of $100,000 to 

$250,000 that are covered by a temporary increase in the 

FDIC’s standard maximum deposit insurance amount 

(SMDIA). The Dodd-Frank Wall Street Reform and 

Consumer Protection Act enacted on July 21, 2010, made 

permanent the standard maximum deposit insurance amount 

(SMDIA) of $250,000. Also, the Dodd-Frank Act amended 

the Federal Deposit Insurance Act to include noninterestbearing transaction accounts as a new temporary deposit 

insurance account category. All funds held in noninterestbearing transaction accounts were fully insured, without limit, 

from December 31, 2010, through December 31, 2012.

Failed/assisted institutions – an institution fails when regulators 

take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the 

FDIC to provide funds to cover losses. An institution is 

defined as “assisted” when the institution remains open and 

receives assistance in order to continue operating.

Fair Value – the valuation of various assets and liabilities on 

the balance sheet—including trading assets and liabilities, 

available-for-sale securities, loans held for sale, assets and 

liabilities accounted for under the fair value option, and foreclosed assets—involves the use of fair values. During periods 

of market stress, the fair values of some financial instruments 

and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC insured institutions 

from the Federal Home Loan Bank System (FHLB), as 

reported by Call Report filers, and by TFR filers prior to 

March 31, 2012.

Goodwill and other intangibles – intangible assets include 

servicing rights, purchased credit card relationships, and other 

identifiable intangible assets. Goodwill is the excess of the 

purchase price over the fair market value of the net assets 

acquired, less subsequent impairment adjustments. Other 

intangible assets are recorded at fair value, less subsequent 

quarterly amortization and impairment adjustments.

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.

assets. The amount of eligible intangibles (including servicing 

rights) included in core capital is limited in accordance with 

supervisory capital regulations.

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets.

Credit enhancements – techniques whereby a company attempts 

to reduce the credit risk of its obligations. Credit enhancement may be provided by a third party (external credit 

enhancement) or by the originator (internal credit enhancement), and more than one type of enhancement may be 

associated with a given issuance.

Deposit Insurance Fund (DIF) – the Bank (BIF) and Savings 

Association (SAIF) Insurance Funds were merged in 2006 by 

the Federal Deposit Insurance Reform Act to form the DIF.

Derivatives notional amount – the notional, or contractual, 

amounts of derivatives represent the level of involvement in 

the types of derivatives transactions and are not a quantification of market risk or credit risk. Notional amounts represent 

the amounts used to calculate contractual cash flows to be 

exchanged.

Derivatives credit equivalent amount – the fair value of the 

derivative plus an additional amount for potential future credit exposure based on the notional amount, the remaining 

maturity and type of the contract.

Derivatives transaction types:

Futures and forward contracts – contracts in which the 

buyer agrees to purchase and the seller agrees to sell, at a 

specified future date, a specific quantity of an underlying 

variable or index at a specified price or yield. These contracts exist for a variety of variables or indices, (traditional 

agricultural or physical commodities, as well as currencies 

and interest rates). Futures contracts are standardized and 

are traded on organized exchanges which set limits on 

counterparty credit exposure. Forward contracts do not 

have standardized terms and are traded over the counter.

Option contracts – contracts in which the buyer acquires 

the right to buy from or sell to another party some specified amount of an underlying variable or index at a stated 

price (strike price) during a period or on a specified future 

date, in return for compensation (such as a fee or premium). The seller is obligated to purchase or sell the variable or index at the discretion of the buyer of the 

contract.

Swaps – obligations between two parties to exchange a 

series of cash flows at periodic intervals (settlement dates), 

for a specified period. The cash flows of a swap are either 

fixed, or determined for each settlement date by multiplying the quantity (notional principal) of the underlying 

variable or index by specified reference rates or prices. 

Except for currency swaps, the notional principal is used 

to calculate each payment but is not exchanged.

Derivatives underlying risk exposure – the potential exposure 

characterized by the level of banks’ concentration in particular underlying instruments, in general. Exposure can result 

from market risk, credit risk, and operational risk, as well as, 

interest rate risk.

Domestic deposits to total assets – total domestic office deposits 

as a percent of total assets on a consolidated basis.
FDIC Quarterly 33 2014, Volume 8, No. 4

Quarterly Banking Profile

Recourse – an arrangement in which a bank retains, in form 

or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally 

accepted accounting principles) that exceeds a pro rata share 

of the bank’s claim on the asset. If a bank has no claim on an 

asset it has sold, then the retention of any credit risk is 

recourse.

Reserves for losses – the allowance for loan and lease losses on 

a consolidated basis.

Restructured loans and leases – loan and lease financing receivables with terms restructured from the original contract. 

Excludes restructured loans and leases that are not in compliance with the modified terms.

Retained earnings – net income less cash dividends on common and preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses 

on securities and extraordinary items) as a percentage of average total (consolidated) assets. The basic yardstick of bank 

profitability.

Return on equity – bank net income (including gains or losses 

on securities and extraordinary items) as a percentage of average total equity capital.

Risk-based capital groups – definition:

(Percent)

Total 

Risk-Based 

Capital*

Tier 1

Risk-Based 

Capital*

Tier 1 

Leverage

Tangible

Equity

Well-capitalized ≥10 and ≥6 and ≥5 –

Adequately 

capitalized ≥8 and ≥4 and ≥4 –

Undercapitalized ≥6 and ≥3 and ≥3 –

Significantly 

undercapitalized <6 or <3 or <3 and >2

Critically 

undercapitalized – – – ≤2

* As a percentage of risk-weighted assets.

Risk Categories and Assessment Rate Schedule – The current risk 

categories became effective January 1, 2007. Capital ratios and 

supervisory ratings distinguish one risk category from another. 

Effective April 1, 2011, risk categories for large institutions 

(generally those with at least $10 billion in assets) were eliminated. The following table shows the relationship of risk categories (I, II, III, IV) for small institutions to capital and 

supervisory groups as well as the initial base 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.

Mortgage-backed securities – certificates of participation in 

pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored or 

private enterprises. Also, see “Securities,” below.

Net charge-offs – total loans and leases charged off (removed 

from balance sheet because of uncollectibility), less amounts 

recovered on loans and leases previously charged off.

Net interest margin – the difference between interest and dividends earned on interest-bearing assets and interest paid to 

depositors and other creditors, expressed as a percentage of 

average earning assets. No adjustments are made for interest 

income that is tax exempt.

Net loans to total assets – loans and lease financing receivables, net of unearned income, allowance and reserves, as a 

percent of total assets on a consolidated basis.

Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and extraordinary items. Income taxes subtracted from 

operating income have been adjusted to exclude the portion 

applicable to securities gains (or losses).

Noncurrent assets – the sum of loans, leases, debt securities, 

and other assets that are 90 days or more past due, or in nonaccrual status.

Noncurrent loans & leases – the sum of loans and leases 90 days 

or more past due, and loans and leases in nonaccrual status.

Number of institutions reporting – the number of institutions 

that actually filed a financial report.

New reporters – insured institutions filing quarterly financial 

reports for the first time.

Other borrowed funds – federal funds purchased, securities sold 

with agreements to repurchase, demand notes issued to the 

U.S. Treasury, FHLB advances, other borrowed money, mortgage indebtedness, obligations under capitalized leases and 

trading liabilities, less revaluation losses on assets held in 

trading accounts.

Other real estate owned – primarily foreclosed property. Direct 

and indirect investments in real estate ventures are excluded. 

The amount is reflected net of valuation allowances. For 

institutions that 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. (TFR filers began filing Call Reports effective 

with the quarter ending March 31, 2012.)

Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their 

losses) compared to the same period a year earlier.

“Problem” institutions – federal regulators assign a composite 

rating to each financial institution, based upon an evaluation 

of financial and operational criteria. The rating is based on a 

scale of 1 to 5 in ascending order of supervisory concern. 

“Problem” institutions are those institutions with financial, 

operational, or managerial weaknesses that threaten their 

continued financial viability. Depending upon the degree of 

risk and supervisory concern, they are rated either a “4” or 

“5.” The number and assets of “problem” institutions are 

based on FDIC composite ratings. Prior to March 31, 2008, 

for institutions whose primary federal regulator was the OTS, 

the OTS composite rating was used.
FDIC Quarterly 34 2014, Volume 8, No. 4

Total Base Assessment Rates*

Risk 

Category 

I

Risk 

Category 

II

Risk 

Category 

III

Risk 

Category 

IV

Large and 

Highly 

Complex 

Institutions

Initial base 

assessment rate 5–9 14 23 35 5–35

Unsecured debt 

adjustment -4.5–0 -5–0 -5–0 -5–0 -5–0

Brokered deposit 

adjustment — 0–10 0–10 0–10 0–10

Total Base 

Assessment rate 2.5–9 9–24 18–33 30–45 2.5–45

* All amounts for all categories are in basis points annually. Total base rates that are 

not the minimum or maximum rate will vary between these rates. Total base assessment rates do not include the depository institution debt adjustment.

Beginning in 2007, each institution is assigned a risk-based 

rate for a quarterly assessment period near the end of the 

quarter following the assessment period. Payment is generally 

due on the 30th day of the last month of the quarter following the assessment period. Supervisory rating changes are 

effective for assessment purposes as of the examination transmittal date.

Special Assessment – On May 22, 2009, the FDIC board 

approved a final rule that imposed a 5 basis point special 

assessment as of June 30, 2009. The special assessment was 

levied on each insured depository institution’s assets minus 

its Tier 1 capital as reported in its report of condition as of 

June 30, 2009. The special assessment was collected 

September 30, 2009, at the same time that the risk-based 

assessment for the second quarter of 2009 was collected. 

The special assessment for any institution was capped at 

10 basis points of the institution’s assessment base for the 

second quarter of 2009 risk-based assessment.

Prepaid Deposit Insurance Assessments – In November 2009, 

the FDIC Board of Directors adopted a final rule requiring 

insured depository institutions (except those that are 

exempted) to prepay their quarterly risk-based deposit 

insurance assessments for the fourth quarter of 2009, and 

for all of 2010, 2011, and 2012, on December 30, 2009. 

For regulatory capital purposes, an institution may assign a 

zero-percent risk weight to the amount of its prepaid 

deposit assessment asset. As required by the FDIC’s regulation establishing the prepaid deposit insurance assessment 

program, this program ended with the final application of 

prepaid assessments to the quarterly deposit insurance 

assessments payable March 29, 2013. The FDIC issued 

refunds of any unused prepaid deposit insurance assessments on June 28, 2013.

[Note: Effective January 1, 2014, a small number of “advanced 

approach institutions” began reporting Tier 1 capital based on 

regulatory capital standards approved by the banking agencies 

in July 2013. For all other FDIC-insured institutions, prior 

existing reporting will continue until January 2015 when 

mandatory compliance for all institutions is scheduled to 

begin. http://www.fdic.gov/regulations/capital/. At that time a 

revised assessment rate schedule will be used to reflect the 

changes in the regulatory capital rules. http://www.fdic.gov/

news/news/financial/2014/fil14037.html]

Capital Category

Supervisory Group

A B C

1. Well Capitalized I

5–9 bps II

14 bps

III

23 bps 2. Adequately Capitalized II

14 bps

3. Undercapitalized III

23 bps

IV

35 bps

Effective April 1, 2011, the initial base assessment rates are 5 

to 35 basis points. An institution’s total assessment rate may 

be less than or greater than its initial base assessment rate as a 

result of additional risk adjustments.

The base assessment rates for small institutions in Risk 

Category I are based on a combination of financial ratios and 

CAMELS component ratings (the financial ratios method).

As required by Dodd-Frank, the calculation of risk-based 

assessment rates for large institutions no longer relies on longterm debt issuer ratings. Rates for large institutions are based 

on CAMELS ratings and certain forward-looking financial 

measures combined into two scorecards—one for most large 

institutions and another for the remaining very large institutions that are structurally and operationally complex or that 

pose unique challenges and risks in case of failure (highly 

complex institutions). In general, a highly complex institution is an institution (other than a credit card bank) with 

more than $500 billion in total assets that is controlled by a 

parent or intermediate parent company with more than $500 

billion in total assets or a processing bank or trust company 

with total fiduciary assets of $500 billion or more. The FDIC 

retains its ability to take additional information into account 

to make a limited adjustment to an institution’s total score 

(the large bank adjustment), which will be used to determine 

an institution’s initial base assessment rate.

Effective April 1, 2011, the three possible adjustments to 

an institution’s initial base assessment rate are as follows: 

(1) Unsecured Debt Adjustment: An institution’s rate may 

decrease by up to 5 basis points for unsecured debt. The unsecured debt adjustment cannot exceed the lesser of 5 basis 

points or 50 percent of an institution’s initial base assessment 

rate (IBAR). Thus, for example, an institution with an IBAR 

of 5 basis points would have a maximum unsecured debt 

adjustment of 2.5 basis points and could not have a total base 

assessment rate lower than 2.5 basis points. (2) Depository 

Institution Debt Adjustment: For institutions that hold longterm unsecured debt issued by another insured depository 

institution, a 50 basis point charge is applied to the amount 

of such debt held in excess of 3 percent of an institution’s 

Tier 1 capital. (3) Brokered Deposit Adjustment: Rates for 

small institutions that are not in Risk Category I and for large 

institutions that are not well capitalized or do not have a 

composite CAMELS rating of 1 or 2 may increase (not to 

exceed 10 basis points) if their brokered deposits exceed 10 

percent of domestic deposits. After applying all possible 

adjustments (excluding the Depository Institution Debt 

Adjustment), minimum and maximum total base assessment 

rates for each risk category are as follows:
FDIC Quarterly 35 2014, Volume 8, No. 4

Quarterly Banking Profile

Qualifying Subchapter S corporations and mutual institutions 

issue unsecured subordinated debentures to the Treasury 

Department through the SBLF. Depository institutions that 

issued these debentures report them as “Subordinated notes 

and debentures.” For regulatory capital purposes, the 

debentures are eligible for inclusion in an institution’s Tier 2 

capital in accordance with their primary federal regulator’s 

capital standards. To participate in the SBLF Program, an 

institution with outstanding securities issued to the Treasury 

Department under the Capital Purchase Program (CPP) was 

required to refinance or repay in full the CPP securities at the 

time of the SBLF funding. Any outstanding warrants that an 

institution issued to the Treasury Department under the CPP 

remain outstanding after the refinancing of the CPP stock 

through the SBLF Program unless the institution chooses to 

repurchase them.

Subchapter S corporation – a Subchapter S corporation is treated as a pass-through entity, similar to a partnership, for federal income tax purposes. It is generally not subject to any 

federal income taxes at the corporate level. This can have the 

effect of reducing institutions’ reported taxes and increasing 

their after-tax earnings.

Trust assets – market value, or other reasonably available 

value of fiduciary and related assets, to include marketable 

securities, and other financial and physical assets. Common 

physical assets held in fiduciary accounts include real estate, 

equipment, collectibles, and household goods. Such fiduciary 

assets are not included in the assets of the financial 

institution.

Unearned income & contra accounts – unearned income for Call 

Report filers only.

Unused loan commitments – includes credit card lines, home 

equity lines, commitments to make loans for construction, 

loans secured by commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for 

sale, which are accounted for as derivatives on the balance 

sheet.)

Yield on earning assets – total interest, dividend, and fee 

income earned on loans and investments as a percentage of 

average earning assets.

Risk-weighted assets – assets adjusted for risk-based capital 

definitions which include on-balance-sheet as well as offbalance-sheet items multiplied by risk-weights that range 

from zero to 200 percent. A conversion factor is used to assign 

a balance sheet equivalent amount for selected off-balancesheet accounts.

Securities – excludes securities held in trading accounts. 

Banks’ securities portfolios consist of securities designated as 

“held-to-maturity,” which are reported at amortized cost 

(book value), and securities designated as “available-for-sale,” 

reported at fair (market) value.

Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments 

for income taxes. Thrift Financial Report (TFR) filers also 

include gains (losses) on the sales of assets held for sale. 

(TFR filers began filing Call Reports effective with the quarter ending March 31, 2012.)

Seller’s interest in institution’s own securitizations – the reporting 

bank’s ownership interest in loans and other assets that have 

been securitized, except an interest that is a form of recourse 

or other seller-provided credit enhancement. Seller’s interests 

differ from the securities issued to investors by the securitization structure. The principal amount of a seller’s interest is 

generally equal to the total principal amount of the pool of 

assets included in the securitization structure less the principal amount of those assets attributable to investors, i.e., in the 

form of securities issued to investors.

Small Business Lending Fund – The Small Business Lending 

Fund (SBLF) was enacted into law in September 2010 as part 

of the Small Business Jobs Act of 2010 to encourage lending 

to small businesses by providing capital to qualified 

community institutions with assets of less than $10 billion. 

The SBLF Program is administered by the U.S. Treasury 

Department (http://www.treasury.gov/resource-center/

sb-programs/Pages/Small-Business-Lending-Fund.aspx). 

Under the SBLF Program, the Treasury Department 

purchased noncumulative perpetual preferred stock from 

qualifying depository institutions and holding companies 

(other than Subchapter S and mutual institutions). When 

this stock has been issued by a depository institution, it is 

reported as “Perpetual preferred stock and related surplus.” 

For regulatory capital purposes, this noncumulative perpetual 

preferred stock qualifies as a component of Tier 1 capital.