QUARTERLY BANKING PROFILE Second Quarter 2019

FDIC QUARTERLY 1

INSURED INSTITUTION PERFORMANCE

Net Income Rises 4.1 Percent to $62.6 Billion on Higher Net Interest Income

Net Interest Margin Remains Stable at 3.39 Percent

Total Loan and Lease Balances Expand 4.5 Percent From 12 Months Ago

Noncurrent Rate Improves and Net Charge-Off Rate Remains Stable

Five New Banks Are Added in Second Quarter 2019

Net Income Rises 4.1 Percent 

to $62.6 Billion on Higher Net 

Interest Income

During the three months ended June 30, quarterly net income for the 5,303 FDIC-insured 

commercial banks and savings institutions totaled $62.6 billion, an increase of $2.5 billion 

(4.1 percent) from a year ago. Improvement in quarterly net income was attributable to 

higher net interest income and an increase in realized securities gains. Almost 60 percent 

of all banks reported annual increases in net income from the year-ago quarter, while less 

than 4 percent of banks were unprofitable during the second quarter.1 The average return on 

assets increased to 1.38 percent from 1.37 percent in second quarter 2018.

Net Interest Income 

Expands 3.7 Percent 

From a Year Earlier

Net interest income of $139 billion increased by $4.9 billion (3.7 percent) from a year earlier, the 

slowest year-over-year growth rate since fourth quarter 2015. Slightly more than three-quarters 

of all banks (75.1 percent) reported an increase in net interest income from second quarter 

2018. Net interest margin for the banking industry was 3.39 percent during the quarter, up 

slightly from 3.38 percent a year ago but below a recent high of 3.48 percent in fourth quarter 

2018. Since year-end 2018, the average yield on earning assets rose by 1 basis point, while the 

average cost of funding increased by 11 basis points. During this period, the largest increase in 

the average cost of funding was among banks with assets from $1 billion to $10 billion.

Loan-Loss Provisions 

Increase More Than 

9 Percent From 

Second Quarter 2018

Banks set aside $12.8 billion in loan-loss provisions during the second quarter, an increase of 

$1.1 billion (9.3 percent) from a year earlier. More than one-third of all banks (36.1 percent) 

reported year-over-year increases in loan-loss provisions. Loan-loss provisions as a percentage of net operating revenue increased from 5.80 percent in second quarter 2018 to 

6.25 percent.

Securities and Other Gains/Losses, Net

Net Operating Income

Quarterly Net Income

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

-20

-10

0

10

20

30

40

50

60

70

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

62.6

Chart 1

Quarterly Noninterest Income 

Quarterly Net Interest Income 

Quarterly Net Operating Revenue 

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

0

20

40

60

80

100

120

140

160

180

200

220

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

205.2

Chart 2

1 Methodology used for calculating industry participation counts consists of institutions existing in both reporting periods.
2 0 1 9  •  Volume 1 3 • Number 3

2 FDIC QUARTERLY

Noninterest Income 

Falls 2.7 Percent From a 

Year Earlier

Noninterest income fell by $1.8 billion (2.7 percent) from 12 months ago, although less than 

half of all banks (41 percent) reported declines. The overall decline in noninterest income 

was driven primarily by servicing fees, which fell by $3.1 billion from a year ago to negative 

$332.7 million, and investment banking fees, which declined by $533.5 million (16.1 percent). 

Increases in all other noninterest income (up $1.2 billion, or 3.8 percent) and trading revenue 

(up $742.5 million, or 9.8 percent) helped offset the decline in noninterest income during 

the year.

Noninterest Expense 

Increases From 

Second Quarter 2018

Noninterest expense rose by $1.6 billion (1.4 percent) from a year ago. The increase was 

widespread with 75.3 percent of all banks contributing to the growth. Salary and employee 

benefits rose by $1.8 billion (3.2 percent) from a year ago, as average assets per employee 

increased from $8.4 million to $8.8 million.

Net Charge-Offs Rise 

9.3 Percent From a 

Year Ago

Banks charged off $12.8 billion in uncollectable loans during the second quarter, up 

$1.1 billion (9.3 percent) from a year ago. The overall increase in net charge-offs was led by 

credit card balances (up $669.4 million, or 8.3 percent) and commercial and industrial loans 

(up $368.9 million, or 25.2 percent). The average net charge-off rate increased modestly from 

0.48 percent in second quarter 2018 to 0.50 percent. The net charge-off rate for commercial 

and industrial loans rose 5 basis points from a year ago to 0.33 percent, while the net chargeoff rate for credit cards rose by 12 basis points from a year ago to 4.03 percent, surpassing the 

4 percent level for the first time since second quarter 2012.

Noncurrent Loan Rate 

Improves to 0.93 Percent

Noncurrent loan balances (90 days or more past due or in nonaccrual status) declined 

by $4.9 billion (4.8 percent) from first quarter 2019. Slightly more than half of all banks 

(50.6 percent) reported declines in noncurrent loan balances. The quarter-over-quarter 

improvement was reflected in residential mortgages, which fell by $2.1 billion (5 percent), 

and credit card balances, which declined by $1.1 billion (8.7 percent). The average noncurrent rate declined by 6 basis points from the previous quarter to 0.93 percent.

Source: FDIC.

Percent

Noncurrent Loan Rate and Quarterly Net Charge-O
 Rate

All FDIC-Insured Institutions

0

1

2

3

4

5

6

Quarterly Net Charge-O Rate

Noncurrent Rate

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart 3

Source: FDIC.

Note: Loan-loss reserves to noncurrent loans and leases.

$ Billions Coverage Ratio (Percent)

Reserve Coverage Ratio

All FDIC-Insured Institutions

0

50

100

150

200

250

300

350

400

450

0

20

40

60

80

100

120

140

160

180

 Loan-Loss Reserves ($) 

 Noncurrent Loans ($)

 Noncurrents Adjusted for GNMA Guaranteed Loans ($)

 Coverage Ratio (%) 

 Coverage Adjusted for GNMA Guaranteed Loans (%)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart 4
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 3

Loan-Loss Reserves Decline 

Modestly From the Previous 

Quarter

Loan-loss reserves totaled $124.9 billion at the end of second quarter, down $292.5 million 

(0.2 percent) from the first quarter. Just over one-quarter of all banks (26.3 percent) reported 

quarterly declines in loan-loss reserves. At banks that itemize their loan-loss reserves, which 

are banks with total assets of $1 billion or more and represent 91 percent of total industry 

loan-loss reserves, the quarterly decline was attributable to residential real estate (down 

$762.7 million, or 6.5 percent) and credit cards (down $59.3 million, or 0.1 percent). Loanloss reserves for commercial loans increased by $445.2 million (1.4 percent) from the previous quarter.

Total Assets Increase From 

First Quarter 2019

Total assets rose by $177.3 billion (1 percent) from the previous quarter. Cash and balances 

due from depository institutions declined by $81.5 billion (4.8 percent). Banks increased 

their investment securities by $54.8 billion (1.5 percent), as mortgage-backed securities 

rose by $65 billion (2.9 percent) and state and municipal securities declined by $14.5 billion 

(4.5 percent). After reaching an all-time high of 35.8 percent in second quarter 2018, 

the percentage of industry assets maturing or repricing in more than three years continued 

to decline, falling to 35.1 percent in the second quarter.

Loan Balances Increase 

From the Previous Quarter 

and a Year Ago

Total loan and lease balances rose by $152.3 billion (1.5 percent) from first quarter 2019. 

Almost three-quarters of all banks (72.7 percent) reported quarterly increases in their loan 

and lease balances. All major loan categories reported quarter-over-quarter increases, led 

by consumer loans, which rose by $42.2 billion (2.5 percent), and residential mortgage 

loans, which increased by $38.3 billion (1.8 percent).2 Over the past year, total loan and lease 

balances rose by $443 billion (4.5 percent), a modest increase from the 4.1 percent annual 

growth rate reported last quarter. Commercial and industrial loans had the largest dollar 

increase from a year ago, increasing by $142.8 billion (6.9 percent).

Held-to-Maturity Securities

Available-for-Sale Securities

Unrealized Gains (Losses) on Investment Securities

All FDIC-Insured Institutions

$ Billions

Source: FDIC.

-100

-80

-60

-40

-20

 0

20

40

60

80

100

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

35

Chart 5

Quarterly Change in Loan Balances

All FDIC-Insured Institutions

Source: FDIC.

Note: FASB Statements 166 and 167 resulted in the consolidation of large amounts of securitized loan

balances back onto banks’ balance sheets in the rst quarter of 2010. Although the total amount 

consolidated cannot be precisely quantied, the industry would have reported a decline in loan balances 

for the quarter absent this change in accounting standards.

$ Billions Percent

-300

-200

-100

0

100

200

300

-10

-8

-6

-4

-2

0

2

4

6

8

Quarterly Change (Le Axis)

12-Month Growth Rate (Right Axis)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

152

Chart 6

2 Consumer loans include credit card balances.
2 0 1 9  •  Volume 1 3 • Number 3

4 FDIC QUARTERLY

Deposits Increase From 

First Quarter 2019

Total deposit balances increased by $114 billion (0.8 percent) from the previous quarter, as 

deposits in foreign offices increased by $51.3 billion (4.1 percent) and domestic office deposits rose by $62.7 billion (0.5 percent). Domestic deposits in noninterest-bearing accounts 

rose by $37.2 billion (1.2 percent), while interest-bearing deposits increased by $25.5 billion 

(0.3 percent). Nondeposit liabilities increased by $25.1 billion (1.2 percent) from the previous 

quarter, as other liabilities rose by $25.2 billion (6.2 percent).

Equity Capital Rises From 

the Previous Quarter

Equity capital rose to $2.1 trillion in the second quarter, up $38.6 billion (1.9 percent) from 

the previous quarter, led by accumulated other comprehensive income. Declared dividends 

totaled $48.6 billion, an increase of $10.8 billion (28.6 percent) from second quarter 2018. 

At the end of second quarter, 16 insured institutions with $2.2 billion in total assets were 

below the requirements for the well-capitalized category as defined for Prompt Corrective 

Action purposes.

Five New Banks Are Added 

in Second Quarter 2019

The number of FDIC-insured commercial banks and savings institutions declined from 

5,362 to 5,303 during the three months ended June 30. Five new banks were added during 

the second quarter, 60 institutions were absorbed by mergers, and one bank failed. The 

number of institutions on the FDIC’s “Problem Bank List” declined from 59 to 56 at the end 

of second quarter, the lowest number since first quarter 2007. Total assets of problem banks 

increased from $46.7 billion to $48.5 billion.

Author:

Benjamin Tikvina

Senior Financial Analyst

Division of Insurance and Research

Source: FDIC.

Number

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

0

100

200

300

400

500

600

700

800

900

1,000

0

50

100

150

200

250

300

350

400

450

500

Assets ($ Billions)

Number of Problem Banks

Assets of Problem Banks 

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart 7
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 5

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

2019** 2018** 2018 2017 2016 2015 2014

Return on assets (%) 1.36 1.33 1.35 0.97 1.04 1.04 1.01

Return on equity (%) 12.01 11.81 11.98 8.60 9.27 9.29 9.01

Core capital (leverage) ratio (%) 9.81 9.74 9.70 9.63 9.48 9.59 9.44

Noncurrent assets plus other real estate owned to assets (%) 0.57 0.64 0.60 0.73 0.86 0.97 1.20

Net charge-offs to loans (%) 0.50 0.49 0.48 0.50 0.47 0.44 0.49

Asset growth rate (%) 4.19 2.71 3.03 3.79 5.09 2.66 5.59

Net interest margin (%) 3.40 3.36 3.40 3.25 3.13 3.07 3.14

Net operating income growth (%) 4.96 27.24 45.45 -3.27 4.43 7.11 -0.73

Number of institutions reporting 5,303 5,542 5,406 5,670 5,913 6,182 6,509

Commercial banks 4,630 4,834 4,715 4,918 5,112 5,338 5,607

Savings institutions 673 708 691 752 801 844 902

Percentage of unprofitable institutions (%) 3.68 3.92 3.39 5.61 4.48 4.82 6.27

Number of problem institutions 56 82 60 95 123 183 291

Assets of problem institutions (in billions) $49 $54 $48 $14 $28 $47 $87

Number of failed institutions 1 0 0 8 5 8 18

* Excludes insured branches of foreign banks (IBAs).

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

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

(dollar figures in millions)  2nd Quarter

2019

1st Quarter

2019

2nd Quarter

2018

%Change 

18Q2-19Q2

Number of institutions reporting 5,303 5,362 5,542 -4.3

Total employees (full-time equivalent) 2,069,218 2,065,597 2,077,005 -0.4

CONDITION DATA

Total assets $18,267,235 $18,089,969 $17,532,880 4.2

Loans secured by real estate 4,963,895 4,902,382 4,831,844 2.7

 1-4 Family residential mortgages 2,160,307 2,122,039 2,090,369 3.3

 Nonfarm nonresidential 1,473,823 1,457,778 1,421,846 3.7

 Construction and development 357,120 353,646 346,820 3.0

 Home equity lines 358,451 365,370 389,049 -7.9

Commercial & industrial loans 2,214,578 2,202,051 2,071,790 6.9

Loans to individuals 1,748,022 1,705,831 1,658,206 5.4

 Credit cards 881,143 859,946 837,186 5.3

Farm loans 81,601 78,535 79,836 2.2

Other loans & leases 1,293,931 1,260,929 1,217,313 6.3

Less: Unearned income 2,347 2,347 2,346 0.0

Total loans & leases 10,299,680 10,147,381 9,856,644 4.5

Less: Reserve for losses 124,887 125,180 123,424 1.2

Net loans and leases 10,174,793 10,022,201 9,733,220 4.5

Securities 3,779,176 3,724,355 3,633,322 4.0

Other real estate owned 6,361 6,555 7,612 -16.4

Goodwill and other intangibles 397,154 399,310 391,772 1.4

All other assets 3,909,751 3,937,548 3,766,954 3.8

Total liabilities and capital 18,267,235 18,089,969 17,532,880 4.2

Deposits 14,039,675 13,925,694 13,468,691 4.2

 Domestic office deposits 12,747,618 12,684,906 12,235,403 4.2

 Foreign office deposits 1,292,057 1,240,788 1,233,288 4.8

Other borrowed funds 1,496,881 1,505,756 1,494,292 0.2

Subordinated debt 68,946 68,853 67,197 2.6

All other liabilities 564,021 530,165 518,861 8.7

Total equity capital (includes minority interests) 2,097,713 2,059,501 1,983,838 5.7

 Bank equity capital 2,094,600 2,056,019 1,980,357 5.8

Loans and leases 30-89 days past due 60,729 64,196 59,288 2.4

Noncurrent loans and leases 95,680 100,545 104,832 -8.7

Restructured loans and leases 52,879 55,262 57,606 -8.2

Mortgage-backed securities 2,282,678 2,217,641 2,156,747 5.8

Earning assets 16,485,316 16,350,347 15,852,101 4.0

FHLB Advances 533,185 521,067 583,973 -8.7

Unused loan commitments 8,048,558 7,988,966 7,736,524 4.0

Trust assets 20,621,589 20,144,341 20,302,438 1.6

Assets securitized and sold 550,767 571,777 642,669 -14.3

Notional amount of derivatives 207,258,101 203,961,596 209,843,315 -1.2

INCOME DATA

First Half 

2019

First Half 

2018 %Change

2nd Quarter 

2019

2nd Quarter 

2018

%Change 

18Q2-19Q2

Total interest income $359,698 $316,552 13.6 $180,661 $161,925 11.6

Total interest expense 81,649 51,328 59.1 41,630 27,803 49.7

Net interest income 278,050 265,224 4.8 139,031 134,122 3.7

Provision for loan and lease losses 26,694 24,130 10.6 12,818 11,724 9.3

Total noninterest income 131,566 135,299 -2.8 66,185 67,997 -2.7

Total noninterest expense 230,112 228,929 0.5 115,068 113,432 1.4

Securities gains (losses) 1,992 421 372.7 1,121 176 535.9

Applicable income taxes 31,574 31,675 -0.3 15,988 16,786 -4.8

Extraordinary gains, net* 169 -188 N/M 177 -180 N/M

Total net income (includes minority interests) 123,397 116,022 6.4 62,639 60,172 4.1

 Bank net income 123,267 115,872 6.4 62,574 60,115 4.1

Net charge-offs 25,505 23,748 7.4 12,773 11,685 9.3

Cash dividends 87,184 68,359 27.5 48,600 37,806 28.6

Retained earnings 36,083 47,513 -24.1 13,974 22,308 -37.4

Net operating income 121,622 115,872 5.0 61,558 60,214 2.2

* See Notes to Users for explanation. N/M - Not Meaningful
2 0 1 9  •  Volume 1 3 • Number 3

6 FDIC QUARTERLY

TABLE III-A. Second Quarter 2019, All FDIC-Insured Institutions

Asset Concentration Groups*

SECOND 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 5,303 11 5 1,329 2,803 388 70 220 426 51

Commercial banks 4,630 10 5 1,317 2,519 105 50 198 384 42

Savings institutions 673 1 0 12 284 283 20 22 42 9

Total assets (in billions) $18,267.2 $521.0 $4,488.8 $291.1 $6,584.1 $355.5 $222.4 $37.7 $75.6 $5,691.0

Commercial banks 17,098.0 428.9 4,488.8 285.1 6,142.4 110.3 114.3 33.3 65.9 5,429.1

Savings institutions 1,169.2 92.0 0.0 6.0 441.7 245.3 108.1 4.4 9.8 261.9

Total deposits (in billions) 14,039.7 350.2 3,211.8 239.3 5,137.0 275.4 183.0 29.7 63.2 4,550.1

Commercial banks 13,115.3 281.6 3,211.8 236.2 4,808.0 86.0 91.8 26.6 55.5 4,317.8

Savings institutions 924.3 68.6 0.0 3.0 329.1 189.3 91.1 3.1 7.7 232.4

Bank net income (in millions) 62,574 4,188 13,931 968 20,419 1,003 798 286 272 20,710

Commercial banks 58,787 3,444 13,931 950 19,406 475 519 114 249 19,700

Savings institutions 3,787 744 0 18 1,014 528 279 172 24 1,009

Performance Ratios (annualized, %)

Yield on earning assets 4.41 12.87 3.78 4.80 4.53 3.87 5.27 3.59 4.41 3.91

Cost of funding earning assets 1.02 2.33 1.01 0.96 1.02 0.99 1.04 0.62 0.70 0.89

Net interest margin 3.39 10.53 2.77 3.84 3.51 2.88 4.24 2.97 3.71 3.01

Noninterest income to assets 1.46 4.43 1.69 0.65 1.07 1.34 1.38 6.47 1.88 1.45

Noninterest expense to assets 2.53 7.04 2.36 2.56 2.55 2.57 3.03 5.52 3.62 2.18

Loan and lease loss provision to assets 0.28 3.28 0.26 0.18 0.17 0.02 0.57 0.05 0.14 0.17

Net operating income to assets 1.36 3.20 1.21 1.31 1.23 1.16 1.40 2.90 1.41 1.45

Pretax return on assets 1.73 4.17 1.55 1.53 1.57 1.44 1.88 3.80 1.62 1.85

Return on assets 1.38 3.21 1.24 1.34 1.25 1.13 1.44 3.05 1.44 1.46

Return on equity 12.07 26.13 11.93 11.32 10.33 10.35 13.41 17.65 11.18 12.96

Net charge-offs to loans and leases 0.50 4.33 0.73 0.17 0.19 0.02 0.79 0.15 0.16 0.35

Loan and lease loss provision to 

net charge-offs 100.35 94.48 92.87 149.61 125.60 123.47 103.72 133.34 154.12 95.25

Efficiency ratio 55.58 48.15 56.79 59.94 59.18 62.63 54.81 59.92 67.67 51.90

% of unprofitable institutions 3.83 0.00 0.00 2.33 3.75 8.51 2.86 6.36 3.99 1.96

% of institutions with earnings gains 60.12 63.64 40.00 59.44 61.43 53.09 52.86 58.64 61.74 62.75

Structural Changes

New reporters 5 0 0 0 0 0 0 4 1 0

Institutions absorbed by mergers 60 0 1 9 47 0 1 0 2 0

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

PRIOR SECOND QUARTERS

(The way it was...)

Return on assets (%) 2018 1.37 2.73 1.23 1.34 1.28 1.07 1.20 3.76 1.14 1.45

 2016 1.06 2.27 0.96 1.23 1.06 0.94 0.96 2.51 0.94 1.01

 2014 1.07 3.03 0.87 1.20 1.00 0.87 1.08 2.05 0.89 1.05

Net charge-offs to loans & leases (%) 2018 0.48 4.02 0.50 0.19 0.16 0.01 1.14 0.04 0.09 0.36

 2016 0.45 3.28 0.55 0.16 0.22 0.06 0.64 0.27 0.16 0.40

 2014 0.50 2.96 0.77 0.13 0.27 0.25 0.45 0.28 0.26 0.25

* See Table V-A (page 10) for explanations.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 7

TABLE III-A. Second Quarter 2019, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

SECOND QUARTER

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 5,303 1,230 3,281 651 132 9 640 611 1,143 1,357 1,165 387

Commercial banks 4,630 1,090 2,884 531 116 9 335 558 982 1,311 1,093 351

Savings institutions 673 140 397 120 16 0 305 53 161 46 72 36

Total assets (in billions) $18,267.2 $72.7 $1,090.1 $1,716.1 $6,287.9 $9,100.4 $3,318.2 $3,735.2 $4,220.8 $3,745.8 $1,169.1 $2,078.1

Commercial banks 17,098.0 64.5 939.9 1,397.6 5,595.5 9,100.4 2,910.1 3,634.4 4,118.6 3,699.5 1,021.0 1,714.4

Savings institutions 1,169.2 8.2 150.2 318.5 692.3 0.0 408.1 100.8 102.2 46.3 148.1 363.7

Total deposits (in billions) 14,039.7 59.9 907.2 1,378.3 4,821.3 6,873.0 2,541.9 2,945.8 3,069.9 2,896.2 943.3 1,642.5

Commercial banks 13,115.3 53.9 788.5 1,133.0 4,267.1 6,873.0 2,234.1 2,869.3 2,996.6 2,860.5 824.8 1,330.0

Savings institutions 924.3 6.1 118.7 245.3 554.2 0.0 307.8 76.5 73.3 35.7 118.5 312.5

Bank net income (in millions) 62,574 174 3,660 5,432 22,266 31,043 9,408 13,412 14,209 12,423 4,049 9,072

Commercial banks 58,787 148 3,180 4,675 19,741 31,043 8,548 13,272 13,802 12,285 3,634 7,246

Savings institutions 3,787 25 481 756 2,525 0 861 140 407 138 415 1,826

Performance Ratios (annualized, %)

Yield on earning assets 4.41 4.61 4.77 4.76 4.86 3.97 4.38 4.45 3.89 4.40 4.81 5.16

Cost of funding earning assets 1.02 0.76 0.92 1.02 1.15 0.93 1.21 0.91 0.88 1.08 0.89 1.11

Net interest margin 3.39 3.86 3.86 3.74 3.71 3.03 3.17 3.54 3.01 3.31 3.92 4.05

Noninterest income to assets 1.46 1.45 1.23 1.11 1.47 1.54 1.30 1.49 1.68 1.26 1.29 1.65

Noninterest expense to assets 2.53 3.82 3.19 2.82 2.61 2.34 2.44 2.54 2.53 2.37 2.99 2.71

Loan and lease loss provision to assets 0.28 0.13 0.14 0.19 0.41 0.23 0.27 0.31 0.19 0.28 0.18 0.49

Net operating income to assets 1.36 0.93 1.29 1.24 1.42 1.35 1.12 1.44 1.33 1.30 1.39 1.72

Pretax return on assets 1.73 1.12 1.58 1.61 1.84 1.70 1.46 1.82 1.65 1.66 1.70 2.29

Return on assets 1.38 0.96 1.35 1.28 1.43 1.37 1.15 1.44 1.34 1.34 1.40 1.75

Return on equity 12.07 6.75 11.42 10.64 11.88 12.66 9.51 11.81 12.16 12.97 11.61 15.50

Net charge-offs to loans and leases 0.50 0.15 0.11 0.21 0.66 0.51 0.45 0.54 0.41 0.53 0.22 0.77

Loan and lease loss provision to 

net charge-offs 100.35 144.89 173.25 125.72 100.98 93.83 106.24 98.55 92.73 99.17 124.38 101.34

Efficiency ratio 55.58 75.65 65.81 61.02 53.22 54.76 58.17 54.15 57.59 55.22 60.74 49.32

% of unprofitable institutions 3.83 9.19 2.59 0.77 0.00 0.00 4.38 6.38 4.64 1.92 3.18 5.17

% of institutions with earnings gains 60.12 54.31 61.02 65.59 63.64 77.78 58.91 62.68 59.23 58.66 59.74 66.93

Structural Changes

New reporters 5 5 0 0 0 0 2 1 2 0 0 0

Institutions absorbed by mergers 60 13 36 9 2 0 12 7 15 12 9 5

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

PRIOR SECOND QUARTERS

(The way it was...)

Return on assets (%) 2018 1.37 1.08 1.27 1.29 1.47 1.34 1.20 1.50 1.30 1.27 1.42 1.76

 2016 1.06 0.92 1.10 1.06 1.13 1.02 0.90 0.96 1.01 1.13 1.10 1.54

 2014 1.07 0.85 1.01 1.01 1.16 1.03 0.95 0.92 1.05 1.14 1.17 1.46

Net charge-offs to loans & leases (%) 2018 0.48 0.11 0.11 0.27 0.69 0.43 0.60 0.54 0.25 0.49 0.21 0.70

 2016 0.45 0.19 0.12 0.21 0.62 0.46 0.46 0.53 0.27 0.52 0.31 0.54

 2014 0.50 0.19 0.23 0.32 0.70 0.46 0.75 0.38 0.35 0.64 0.22 0.48

* See Table V-A (page 11) for explanations.
2 0 1 9  •  Volume 1 3 • Number 3

8 FDIC QUARTERLY

TABLE IV-A. First Half 2019, All FDIC-Insured Institutions

Asset Concentration Groups*

FIRST HALF

(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 5,303 11 5 1,329 2,803 388 70 220 426 51

Commercial banks 4,630 10 5 1,317 2,519 105 50 198 384 42

Savings institutions 673 1 0 12 284 283 20 22 42 9

Total assets (in billions) $18,267.2 $521.0 $4,488.8 $291.1 $6,584.1 $355.5 $222.4 $37.7 $75.6 $5,691.0

Commercial banks 17,098.0 428.9 4,488.8 285.1 6,142.4 110.3 114.3 33.3 65.9 5,429.1

Savings institutions 1,169.2 92.0 0.0 6.0 441.7 245.3 108.1 4.4 9.8 261.9

Total deposits (in billions) 14,039.7 350.2 3,211.8 239.3 5,137.0 275.4 183.0 29.7 63.2 4,550.1

Commercial banks 13,115.3 281.6 3,211.8 236.2 4,808.0 86.0 91.8 26.6 55.5 4,317.8

Savings institutions 924.3 68.6 0.0 3.0 329.1 189.3 91.1 3.1 7.7 232.4

Bank net income (in millions) 123,267 8,346 27,851 1,925 39,894 2,071 1,521 569 536 40,554

Commercial banks 115,473 6,725 27,851 1,875 37,856 941 1,022 223 488 38,494

Savings institutions 7,794 1,621 0 50 2,039 1,131 499 347 47 2,061

Performance Ratios (annualized, %)

Yield on earning assets 4.40 12.88 3.83 4.74 4.51 3.85 5.25 3.59 4.37 3.90

Cost of funding earning assets 1.00 2.33 1.03 0.93 0.99 0.96 1.00 0.61 0.68 0.87

Net interest margin 3.40 10.56 2.80 3.81 3.52 2.89 4.25 2.98 3.69 3.02

Noninterest income to assets 1.46 4.25 1.80 0.62 1.05 1.32 1.25 6.34 1.84 1.41

Noninterest expense to assets 2.55 6.92 2.45 2.54 2.55 2.56 2.93 5.50 3.60 2.18

Loan and lease loss provision to assets 0.30 3.29 0.27 0.13 0.17 0.01 0.58 0.04 0.12 0.20

Net operating income to assets 1.35 3.20 1.22 1.32 1.22 1.16 1.36 2.92 1.40 1.42

Pretax return on assets 1.71 4.13 1.57 1.53 1.55 1.50 1.84 3.71 1.60 1.80

Return on assets 1.36 3.21 1.25 1.33 1.24 1.17 1.38 3.07 1.43 1.43

Return on equity 12.01 26.18 11.99 11.45 10.25 10.84 12.96 17.93 11.16 12.78

Net charge-offs to loans and leases 0.50 4.32 0.72 0.18 0.18 0.02 0.79 0.13 0.13 0.37

Loan and lease loss provision to 

net charge-offs 104.66 94.25 98.64 104.08 134.93 121.54 104.83 116.28 161.92 105.45

Efficiency ratio 55.69 47.78 57.06 60.41 59.26 62.61 53.89 60.49 68.08 52.07

% of unprofitable institutions 3.68 0.00 0.00 2.41 3.39 9.28 1.43 6.36 3.29 5.88

% of institutions with earnings gains 62.59 72.73 40.00 60.72 64.65 51.80 52.86 62.73 65.96 64.71

Condition Ratios (%)

Earning assets to total assets 90.25 95.40 87.41 93.45 90.79 95.10 95.46 92.06 93.07 90.66

Loss allowance to:

Loans and leases 1.21 4.51 1.43 1.37 0.98 0.62 1.05 1.44 1.28 1.02

Noncurrent loans and leases 130.53 303.96 161.64 116.66 126.54 33.78 163.89 126.40 138.23 96.99

Noncurrent assets plus

other real estate owned to assets 0.57 1.20 0.37 0.92 0.61 1.19 0.46 0.43 0.67 0.56

Equity capital ratio 11.47 12.32 10.46 11.94 12.18 11.05 10.93 17.57 13.09 11.31

Core capital (leverage) ratio 9.81 12.00 9.13 11.35 10.19 10.64 10.93 16.62 12.86 9.44

Common equity tier 1 capital ratio 13.36 14.07 14.07 14.79 12.26 21.05 17.67 36.04 21.50 13.49

Tier 1 risk-based capital ratio 13.44 14.21 14.15 14.80 12.33 21.07 17.90 36.05 21.52 13.56

Total risk-based capital ratio 14.79 16.13 15.68 15.88 13.54 21.82 18.91 36.86 22.58 14.96

Net loans and leases to deposits 72.47 115.36 51.97 83.12 89.97 79.38 83.60 34.67 68.28 62.76

Net loans to total assets 55.70 77.54 37.18 68.31 70.20 61.48 68.79 27.32 57.01 50.18

Domestic deposits to total assets 69.78 65.98 47.31 82.19 77.72 77.15 82.27 78.80 83.49 76.85

Structural Changes

New reporters 6 0 0 0 1 0 0 4 1 0

Institutions absorbed by mergers 103 0 1 18 78 1 1 1 3 0

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

PRIOR FIRST HALVES

(The way it was...)

Number of institutions 2018 5,542 12 5 1,383 2,894 406 71 245 475 51

 2016 6,058 13 4 1,466 3,029 491 63 324 605 63

 2014 6,656 16 4 1,493 3,300 569 56 391 765 62

Total assets (in billions) 2018 $17,532.9 $626.4 $4,222.2 $283.8 $6,167.6 $356.4 $216.8 $39.3 $80.8 $5,539.6

 2016 16,534.0 502.0 3,966.6 270.7 5,986.3 396.2 200.9 56.4 104.1 5,050.8

 2014 15,171.9 601.2 3,802.2 250.6 5,059.2 458.5 212.7 63.1 138.7 4,585.7

Return on assets (%) 2018 1.33 2.71 1.22 1.32 1.24 1.08 1.31 3.64 1.08 1.35

 2016 1.02 2.31 0.90 1.22 1.01 0.95 1.00 2.50 0.93 0.97

 2014 1.04 3.25 0.82 1.15 0.98 0.82 1.06 1.96 0.86 0.99

Net charge-offs to loans & leases (%) 2018 0.49 4.02 0.53 0.13 0.17 0.02 0.97 0.10 0.13 0.37

 2016 0.45 3.27 0.57 0.13 0.22 0.06 0.65 0.17 0.15 0.40

 2014 0.51 2.98 0.74 0.10 0.27 0.26 0.50 0.21 0.21 0.30

Noncurrent assets plus 

OREO to assets (%) 2018 0.64 1.05 0.41 0.88 0.65 1.61 0.47 0.44 0.76 0.71

 2016 0.91 0.87 0.66 0.78 0.93 1.80 0.86 0.61 1.02 1.04

 2014 1.38 0.78 0.92 0.90 1.42 2.10 0.89 0.84 1.48 1.78

Equity capital ratio (%) 2018 11.30 15.29 10.02 11.31 11.91 11.23 10.35 16.60 11.89 11.12

 2016 11.27 14.81 9.95 11.58 11.88 11.59 10.24 15.48 11.98 11.18

 2014 11.25 14.61 9.38 11.26 12.05 11.71 9.83 13.99 11.63 11.45

* See Table V-A (page 10) for explanations.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 9

TABLE IV-A. First Half 2019, All FDIC-Insured Institutions 

Asset Size Distribution Geographic Regions*

FIRST HALF

(The way it is...)

All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting 5,303 1,230 3,281 651 132 9 640 611 1,143 1,357 1,165 387

Commercial banks 4,630 1,090 2,884 531 116 9 335 558 982 1,311 1,093 351

Savings institutions 673 140 397 120 16 0 305 53 161 46 72 36

Total assets (in billions) $18,267.2 $72.7 $1,090.1 $1,716.1 $6,287.9 $9,100.4 $3,318.2 $3,735.2 $4,220.8 $3,745.8 $1,169.1 $2,078.1

Commercial banks 17,098.0 64.5 939.9 1,397.6 5,595.5 9,100.4 2,910.1 3,634.4 4,118.6 3,699.5 1,021.0 1,714.4

Savings institutions 1,169.2 8.2 150.2 318.5 692.3 0.0 408.1 100.8 102.2 46.3 148.1 363.7

Total deposits (in billions) 14,039.7 59.9 907.2 1,378.3 4,821.3 6,873.0 2,541.9 2,945.8 3,069.9 2,896.2 943.3 1,642.5

Commercial banks 13,115.3 53.9 788.5 1,133.0 4,267.1 6,873.0 2,234.1 2,869.3 2,996.6 2,860.5 824.8 1,330.0

Savings institutions 924.3 6.1 118.7 245.3 554.2 0.0 307.8 76.5 73.3 35.7 118.5 312.5

Bank net income (in millions) 123,267 361 6,947 10,630 44,047 61,282 18,302 26,252 28,551 24,327 7,808 18,028

Commercial banks 115,473 313 5,995 9,064 38,820 61,282 16,550 25,882 27,785 24,064 7,023 14,169

Savings institutions 7,794 48 952 1,566 5,228 0 1,752 370 765 263 785 3,858

Performance Ratios (annualized, %)

Yield on earning assets 4.40 4.55 4.73 4.73 4.84 3.99 4.35 4.46 3.92 4.40 4.78 5.14

Cost of funding earning assets 1.00 0.73 0.89 0.99 1.12 0.93 1.18 0.88 0.91 1.05 0.87 1.08

Net interest margin 3.40 3.82 3.84 3.74 3.72 3.06 3.17 3.57 3.01 3.35 3.91 4.06

Noninterest income to assets 1.46 1.39 1.17 1.07 1.44 1.57 1.28 1.43 1.80 1.24 1.22 1.60

Noninterest expense to assets 2.55 3.68 3.17 2.80 2.60 2.38 2.44 2.51 2.60 2.39 2.96 2.70

Loan and lease loss provision to assets 0.30 0.13 0.13 0.18 0.42 0.25 0.29 0.34 0.21 0.29 0.18 0.48

Net operating income to assets 1.35 0.97 1.25 1.23 1.41 1.34 1.10 1.41 1.34 1.28 1.36 1.72

Pretax return on assets 1.71 1.14 1.51 1.59 1.82 1.69 1.43 1.79 1.69 1.63 1.66 2.27

Return on assets 1.36 0.99 1.29 1.26 1.42 1.36 1.13 1.42 1.35 1.32 1.36 1.74

Return on equity 12.01 7.10 11.02 10.58 11.89 12.57 9.36 11.68 12.33 12.79 11.40 15.57

Net charge-offs to loans and leases 0.50 0.14 0.10 0.19 0.66 0.52 0.46 0.56 0.39 0.52 0.21 0.78

Loan and lease loss provision to 

net charge-offs 104.66 159.22 181.74 132.51 102.76 101.20 110.68 104.94 102.70 104.46 127.71 97.47

Efficiency ratio 55.69 74.53 66.40 61.26 53.13 54.99 58.42 53.90 57.66 55.57 60.96 49.42

% of unprofitable institutions 3.68 9.27 2.26 1.08 0.00 0.00 4.53 5.40 4.02 2.43 2.92 5.17

% of institutions with earnings gains 62.59 56.59 63.46 68.36 67.42 77.78 60.47 65.14 62.82 58.88 64.38 68.99

Condition Ratios (%)

Earning assets to total assets 90.25 92.83 93.31 92.39 91.04 88.90 89.92 89.47 88.84 90.51 91.33 93.92

Loss allowance to:

Loans and leases 1.21 1.39 1.24 1.08 1.23 1.22 1.15 1.19 1.20 1.27 1.02 1.39

Noncurrent loans and leases 130.53 109.76 151.50 143.51 134.96 121.45 127.76 127.04 130.19 114.17 106.16 206.08

Noncurrent assets plus

other real estate owned to assets 0.57 0.97 0.73 0.62 0.60 0.51 0.54 0.58 0.53 0.62 0.74 0.44

Equity capital ratio 11.47 14.36 11.95 12.08 12.07 10.85 12.06 12.29 11.18 10.29 12.13 11.38

Core capital (leverage) ratio 9.81 14.01 11.61 11.02 10.21 9.05 10.29 9.67 9.58 9.30 10.48 10.33

Common equity tier 1 capital ratio 13.36 22.40 15.91 14.10 13.00 13.09 13.59 12.97 13.51 12.81 13.31 14.45

Tier 1 risk-based capital ratio 13.44 22.42 15.94 14.12 13.15 13.12 13.64 13.07 13.55 12.89 13.40 14.56

Total risk-based capital ratio 14.79 23.48 17.01 15.09 14.46 14.62 14.93 14.31 14.87 14.73 14.41 15.61

Net loans and leases to deposits 72.47 71.64 82.17 88.62 80.20 62.54 72.72 72.90 69.71 68.03 81.91 78.89

Net loans to total assets 55.70 59.07 68.38 71.18 61.50 47.23 55.70 57.49 50.71 52.60 66.10 62.36

Domestic deposits to total assets 69.78 82.45 83.22 80.07 74.11 63.15 70.52 76.38 63.61 61.43 80.65 78.22

Structural Changes

New reporters 6 6 0 0 0 0 2 1 2 0 1 0

Institutions absorbed by mergers 103 19 63 17 4 0 19 13 23 22 18 8

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

PRIOR FIRST HALVES

(The way it was...)

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

 2016 6,058 1,637 3,690 619 102 10 739 743 1,305 1,519 1,292 460

 2014 6,656 1,975 4,007 565 101 8 823 837 1,444 1,629 1,398 525

Total assets (in billions) 2018 $17,532.9 $81.8 $1,112.2 $1,706.7 $5,951.5 $8,680.7 $3,276.4 $3,614.2 $3,957.2 $3,626.7 $1,114.0 $1,944.4

 2016 16,534.0 96.7 1,173.6 1,724.1 4,897.6 8,642.0 3,127.7 3,467.9 3,692.0 3,604.1 976.1 1,666.2

 2014 15,171.9 116.3 1,234.6 1,492.7 4,761.2 7,567.1 3,047.7 3,049.5 3,480.2 3,310.6 893.3 1,390.7

Return on assets (%) 2018 1.33 1.03 1.23 1.28 1.42 1.29 1.17 1.41 1.29 1.22 1.38 1.70

 2016 1.02 0.92 1.07 1.05 1.08 0.97 0.85 0.92 0.97 1.08 1.07 1.44

 2014 1.04 0.82 0.96 1.01 1.17 0.98 0.98 0.90 0.92 1.14 1.14 1.44

Net charge-offs to loans & leases (%) 2018 0.49 0.15 0.10 0.22 0.71 0.44 0.61 0.55 0.25 0.51 0.21 0.72

 2016 0.45 0.15 0.11 0.20 0.62 0.47 0.47 0.53 0.27 0.53 0.31 0.53

 2014 0.51 0.19 0.21 0.28 0.73 0.47 0.75 0.42 0.37 0.63 0.21 0.49

Noncurrent assets plus 

OREO to assets (%) 2018 0.64 0.99 0.80 0.69 0.63 0.62 0.61 0.72 0.57 0.74 0.76 0.46

 2016 0.91 1.17 1.05 0.89 0.83 0.94 0.73 1.08 0.85 1.10 1.05 0.55

 2014 1.38 1.62 1.61 1.61 0.93 1.58 0.98 1.90 1.26 1.67 1.34 0.76

Equity capital ratio (%) 2018 11.30 13.36 11.32 11.74 12.14 10.61 12.49 12.08 10.49 10.26 11.55 11.26

 2016 11.27 12.97 11.47 11.78 12.21 10.60 12.01 12.37 10.31 10.15 11.21 12.22

 2014 11.25 12.15 11.09 11.90 12.72 10.20 11.91 12.42 9.86 10.41 11.16 12.76

* See Table V-A (page 11) for explanations.
2 0 1 9  •  Volume 1 3 • Number 3

10 FDIC QUARTERLY

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

Asset Concentration Groups*

June 30, 2019 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 0.55 0.15 0.65 0.71 0.41 0.68 0.36 0.95 1.01 0.79

Construction and development 0.37 0.00 0.07 0.84 0.35 0.62 0.20 0.92 1.04 0.42

Nonfarm nonresidential 0.21 0.00 0.21 0.57 0.21 0.22 0.58 0.53 0.73 0.15

Multifamily residential real estate 0.09 0.00 0.06 0.38 0.09 0.11 0.01 0.07 0.33 0.11

Home equity loans 0.61 0.00 1.08 0.49 0.48 0.49 0.40 0.56 0.71 0.67

Other 1-4 family residential 0.90 0.17 0.91 1.01 0.76 0.76 0.33 1.30 1.21 1.12

Commercial and industrial loans 0.29 0.80 0.32 0.86 0.27 0.57 0.45 0.97 1.11 0.23

Loans to individuals 1.37 1.60 0.97 1.16 1.37 0.99 0.83 1.60 1.58 1.63

Credit card loans 1.28 1.63 0.99 1.09 1.32 0.79 0.73 2.62 2.90 1.13

Other loans to individuals 1.46 1.20 0.90 1.17 1.37 1.00 0.85 1.51 1.47 1.93

All other loans and leases (including farm) 0.23 0.74 0.33 0.74 0.19 0.51 0.21 0.65 0.74 0.13

Total loans and leases 0.59 1.52 0.58 0.75 0.44 0.67 0.69 1.03 1.05 0.67

Percent of Loans Noncurrent**

All real estate loans 1.19 1.71 1.48 1.11 0.79 1.97 1.29 1.30 0.99 1.88

Construction and development 0.45 0.11 0.61 0.55 0.45 0.30 0.99 0.58 0.69 0.38

Nonfarm nonresidential 0.56 51.85 0.56 0.86 0.52 0.51 1.27 1.12 1.08 0.64

Multifamily residential real estate 0.13 0.00 0.06 0.51 0.14 0.98 0.14 2.14 0.58 0.09

Home equity loans 1.95 0.00 3.82 0.36 1.15 0.92 1.66 0.30 0.45 2.78

Other 1-4 family residential 1.83 0.59 1.92 0.85 1.32 2.29 1.27 1.54 0.98 2.43

Commercial and industrial loans 0.79 0.65 0.84 1.37 0.86 1.01 0.23 0.79 0.85 0.66

Loans to individuals 0.92 1.57 0.88 0.49 0.79 0.42 0.48 0.83 0.62 0.67

Credit card loans 1.31 1.64 1.05 0.47 1.18 0.72 1.27 1.28 2.06 1.12

Other loans to individuals 0.52 0.52 0.29 0.50 0.75 0.40 0.30 0.80 0.50 0.40

All other loans and leases (including farm) 0.22 0.02 0.09 1.32 0.35 0.77 0.13 0.66 0.68 0.13

Total loans and leases 0.93 1.48 0.88 1.17 0.77 1.84 0.64 1.14 0.92 1.05

Percent of Loans Charged-Off (net, YTD)

All real estate loans 0.01 0.02 0.01 0.07 0.02 -0.02 -0.01 0.00 0.04 -0.02

Construction and development -0.01 0.00 0.08 -0.03 -0.01 -0.07 0.00 0.05 -0.05 -0.04

Nonfarm nonresidential 0.04 0.00 0.13 0.07 0.04 0.01 0.04 0.00 0.07 0.03

Multifamily residential real estate 0.00 0.00 0.00 -0.01 0.01 0.00 -0.01 0.00 0.01 0.00

Home equity loans -0.07 0.00 -0.02 -0.03 0.04 -0.22 0.07 0.04 0.05 -0.25

Other 1-4 family residential 0.01 0.03 -0.01 0.03 0.02 -0.01 -0.02 -0.02 0.04 -0.01

Commercial and industrial loans 0.30 2.29 0.31 0.29 0.26 0.05 0.60 0.20 0.17 0.26

Loans to individuals 2.44 4.54 2.85 0.58 1.19 1.07 1.06 0.52 0.84 1.79

Credit card loans 3.97 4.66 3.50 2.91 4.47 1.81 2.89 1.97 6.20 3.41

Other loans to individuals 0.86 2.51 0.65 0.35 0.90 1.02 0.63 0.40 0.48 0.83

All other loans and leases (including farm) 0.12 1.50 0.06 0.36 0.14 0.25 0.03 0.70 0.28 0.12

Total loans and leases 0.50 4.32 0.72 0.18 0.18 0.02 0.79 0.13 0.13 0.37

Loans Outstanding (in billions)

All real estate loans $4,963.9 $1.1 $560.3 $125.5 $2,833.4 $196.6 $34.4 $7.2 $33.6 $1,171.7

Construction and development 357.1 0.1 16.4 7.4 274.6 5.2 0.6 0.6 2.0 50.2

Nonfarm nonresidential 1,473.8 0.0 55.7 34.9 1,102.3 17.3 2.1 2.4 7.6 251.5

Multifamily residential real estate 444.9 0.0 81.9 4.2 306.7 5.3 0.3 0.2 1.0 45.4

Home equity loans 358.5 0.0 41.6 2.5 190.0 10.5 3.3 0.2 1.2 109.2

Other 1-4 family residential 2,160.3 1.0 316.4 29.2 910.4 157.3 28.0 3.3 18.8 695.8

Commercial and industrial loans 2,214.6 39.6 356.6 23.8 1,076.0 6.1 6.4 1.4 3.7 700.9

Loans to individuals 1,748.0 382.1 381.3 6.7 382.4 4.4 110.5 1.4 3.6 475.6

Credit card loans 881.1 359.2 294.1 0.6 30.5 0.3 20.6 0.1 0.3 175.6

Other loans to individuals 866.9 22.9 87.2 6.1 351.9 4.1 90.0 1.3 3.3 300.0

All other loans and leases (including farm) 1,375.5 0.3 395.6 45.6 377.2 13.0 3.3 0.5 2.7 537.4

Total loans and leases (plus unearned income) 10,302.0 423.0 1,693.8 201.7 4,669.0 220.1 154.7 10.5 43.7 2,885.6

Memo: Other Real Estate Owned (in millions)

All other real estate owned 6,361.3 0.2 456.8 303.1 4,141.6 166.2 28.5 40.4 103.5 1,120.9

Construction and development 1,591.5 0.0 4.0 56.7 1,358.9 41.1 3.9 18.5 16.1 92.2

Nonfarm nonresidential 1,960.6 0.0 73.0 89.9 1,468.8 18.4 7.7 13.0 45.0 244.7

Multifamily residential real estate 82.0 0.0 1.0 7.5 72.3 0.6 0.0 0.1 0.2 0.3

1-4 family residential 2,464.0 0.2 324.8 53.0 1,141.3 104.7 16.8 8.3 38.3 776.6

Farmland 208.2 0.0 0.0 96.0 100.3 1.4 0.0 0.5 3.9 6.2

* 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.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 11

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

Asset Size Distribution Geographic Regions*

June 30, 2019 All Insured 

Institutions

Less Than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

$10 Billion 

to $250 

Billion

Greater 

Than $250 

Billion

New 

York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate 0.55 1.17 0.58 0.32 0.48 0.74 0.43 0.58 0.56 0.82 0.64 0.25

Construction and development 0.37 0.91 0.55 0.40 0.31 0.31 0.35 0.21 0.29 0.65 0.35 0.44

Nonfarm nonresidential 0.21 0.96 0.41 0.22 0.16 0.14 0.24 0.17 0.24 0.20 0.31 0.12

Multifamily residential real estate 0.09 0.60 0.28 0.10 0.06 0.08 0.08 0.12 0.12 0.09 0.08 0.05

Home equity loans 0.61 0.72 0.49 0.39 0.51 0.77 0.49 0.61 0.72 0.78 0.43 0.30

Other 1-4 family residential 0.90 1.53 0.79 0.47 0.86 1.07 0.74 0.93 0.81 1.29 1.35 0.37

Commercial and industrial loans 0.29 1.15 0.64 0.46 0.23 0.26 0.17 0.25 0.33 0.27 0.39 0.41

Loans to individuals 1.37 1.75 1.39 1.34 1.36 1.38 1.22 1.94 0.89 1.20 0.89 1.53

Credit card loans 1.28 1.33 2.09 2.86 1.52 1.04 1.38 1.45 0.92 1.14 0.73 1.65

Other loans to individuals 1.46 1.76 1.35 1.05 1.20 1.81 1.09 2.41 0.86 1.31 0.95 1.42

All other loans and leases (including farm) 0.23 0.70 0.63 0.27 0.16 0.24 0.08 0.15 0.37 0.27 0.22 0.16

Total loans and leases 0.59 1.14 0.62 0.40 0.57 0.65 0.46 0.70 0.53 0.66 0.58 0.58

Percent of Loans Noncurrent** 

All real estate loans 1.19 1.19 0.79 0.69 1.03 1.79 1.03 1.32 1.34 1.70 1.07 0.40

Construction and development 0.45 0.65 0.71 0.47 0.39 0.33 0.54 0.44 0.60 0.33 0.34 0.45

Nonfarm nonresidential 0.56 1.35 0.71 0.60 0.44 0.61 0.65 0.52 0.64 0.60 0.57 0.33

Multifamily residential real estate 0.13 0.65 0.28 0.15 0.14 0.06 0.13 0.25 0.12 0.12 0.16 0.08

Home equity loans 1.95 0.50 0.53 0.60 1.13 3.17 1.96 1.86 2.02 2.89 0.99 0.55

Other 1-4 family residential 1.83 1.14 0.83 0.98 1.78 2.34 1.64 1.96 1.87 2.51 2.24 0.45

Commercial and industrial loans 0.79 1.67 0.98 1.17 0.84 0.66 0.81 0.56 0.80 0.79 0.96 1.18

Loans to individuals 0.92 0.77 0.66 0.74 1.09 0.79 1.02 1.09 0.61 0.92 0.74 0.98

Credit card loans 1.31 0.53 1.64 2.52 1.56 1.07 1.56 1.34 0.94 1.21 1.23 1.64

Other loans to individuals 0.52 0.77 0.59 0.39 0.63 0.42 0.56 0.85 0.25 0.44 0.54 0.40

All other loans and leases (including farm) 0.22 1.51 1.00 0.45 0.28 0.12 0.20 0.17 0.16 0.28 0.37 0.30

Total loans and leases 0.93 1.26 0.82 0.75 0.91 1.01 0.90 0.93 0.92 1.11 0.96 0.67

Percent of Loans Charged-Off (net, YTD) 

All real estate loans 0.01 0.06 0.02 0.03 0.03 -0.02 0.03 -0.01 0.01 0.01 0.03 0.00

Construction and development -0.01 0.05 -0.02 -0.02 0.00 -0.01 0.03 -0.03 0.03 -0.05 0.00 -0.05

Nonfarm nonresidential 0.04 0.08 0.03 0.04 0.04 0.05 0.05 0.05 0.02 0.06 0.05 0.00

Multifamily residential real estate 0.00 0.03 0.00 0.00 0.01 0.00 0.01 0.03 0.00 0.00 -0.01 0.00

Home equity loans -0.07 0.13 0.02 0.03 0.02 -0.17 0.05 -0.30 0.01 -0.02 0.03 -0.04

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

Commercial and industrial loans 0.30 0.30 0.26 0.33 0.35 0.26 0.24 0.29 0.30 0.26 0.29 0.49

Loans to individuals 2.44 0.56 1.02 1.88 2.72 2.29 2.49 2.45 1.98 2.78 1.37 2.77

Credit card loans 3.97 3.04 5.79 7.27 4.48 3.46 4.01 4.08 3.37 3.81 2.72 4.85

Other loans to individuals 0.86 0.54 0.72 0.81 0.97 0.76 1.16 0.83 0.51 0.99 0.79 0.88

All other loans and leases (including farm) 0.12 0.21 0.19 0.24 0.10 0.11 0.11 0.13 0.10 0.11 0.22 0.10

Total loans and leases 0.50 0.14 0.10 0.19 0.66 0.52 0.46 0.56 0.39 0.52 0.21 0.78

Loans Outstanding (in billions) 

All real estate loans $4,963.9 $29.6 $581.1 $900.8 $1,814.6 $1,637.8 $1,025.7 $929.8 $1,002.9 $875.3 $498.3 $631.9

Construction and development 357.1 1.7 55.3 88.1 146.7 65.4 68.5 59.1 60.4 50.1 78.2 41.0

Nonfarm nonresidential 1,473.8 6.9 219.9 368.6 590.6 287.8 339.2 286.9 223.8 199.6 207.5 216.8

Multifamily residential real estate 444.9 0.7 31.8 101.9 185.2 125.2 157.1 44.6 112.5 38.8 22.9 69.0

Home equity loans 358.5 0.7 20.8 39.1 137.4 160.4 73.5 87.3 88.6 61.7 20.1 27.2

Other 1-4 family residential 2,160.3 13.7 201.0 277.6 735.6 932.4 382.7 437.7 492.9 431.1 150.7 265.3

Commercial and industrial loans 2,214.6 5.1 94.7 196.5 855.3 1,063.0 345.6 541.5 495.2 439.4 152.6 240.2

Loans to individuals 1,748.0 2.7 30.7 70.2 802.6 841.7 290.3 415.7 338.1 314.1 67.6 322.2

Credit card loans 881.1 0.0 1.8 11.5 395.1 472.7 132.9 205.3 172.7 199.0 19.9 151.4

Other loans to individuals 866.9 2.7 28.9 58.7 407.5 369.0 157.4 210.4 165.4 115.1 47.7 170.8

All other loans and leases (including farm) 1,375.5 6.1 48.6 67.7 443.7 809.4 208.8 286.2 330.2 367.6 62.5 120.2

Total loans and leases 

(plus unearned income) 10,302.0 43.5 755.2 1,235.2 3,916.1 4,352.0 1,870.4 2,173.3 2,166.4 1,996.4 781.0 1,314.5

Memo: Other Real Estate Owned 

(in millions) 

All other real estate owned 6,361.3 154.9 1,768.2 1,382.7 1,672.3 1,383.2 1,147.7 1,417.4 1,253.6 1,074.1 1,132.8 335.7

Construction and development 1,591.5 32.7 720.6 438.5 311.8 87.9 212.5 434.9 186.1 265.8 384.2 108.0

Nonfarm nonresidential 1,960.6 47.7 587.3 555.4 464.5 305.7 299.2 424.9 395.1 303.3 468.5 69.7

Multifamily residential real estate 82.0 5.2 45.0 22.6 5.7 3.5 15.7 21.4 14.4 15.6 8.7 6.1

1-4 family residential 2,464.0 47.7 325.1 292.2 867.9 931.1 608.5 522.7 612.1 366.0 230.0 124.8

Farmland 208.2 21.6 90.1 74.1 22.3 0.0 11.8 13.4 21.0 93.4 41.4 27.2

* Regions:

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

U.S. Virgin Islands

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

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

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

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

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

** 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.
2 0 1 9  •  Volume 1 3 • Number 3

12 FDIC QUARTERLY

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

2nd 

Quarter 

2019

1st 

Quarter 

2019

4th

Quarter 

2018

3rd

Quarter 

2018

2nd 

Quarter 

2018

% 

Change 

18Q2-

19Q2

Asset Size Distribution

(dollar figures in millions;

notional amounts unless otherwise indicated)

Less 

Than 

$100 

Million

$100 

Million 

to $1 

Billion

$1 

Billion 

to $10 

Billion

$10 

Billion 

to $250 

Billion

Greater 

Than 

$250 

Billion

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives 1,342 1,320 1,311 1,347 1,362 -1.5 38 734 437 124 9

Total assets of institutions reporting derivatives $16,696,059 $16,498,425 $16,296,552 $16,058,176 $15,950,535 4.7 $2,687 $322,353 $1,284,154 $5,986,437 $9,100,428

Total deposits of institutions reporting derivatives 12,778,472 12,647,277 12,555,763 12,291,565 12,206,863 4.7 2,184 266,193 1,027,742 4,609,386 6,872,967

Total derivatives 207,258,101 203,961,596 178,089,335 209,769,422 209,843,315 -1.2 242 25,931 151,963 60,090,499 146,989,465

Derivative Contracts by Underlying Risk Exposure 

Interest rate 151,863,612 149,193,449 128,175,074 156,781,236 157,435,172 -3.5 240 25,703 145,236 49,051,929 102,640,505

Foreign exchange* 46,115,633 45,570,276 40,948,207 43,473,496 43,279,998 6.6 0 1 4,828 10,426,309 35,684,495

Equity 3,722,531 3,675,244 3,374,363 3,644,559 3,420,624 8.8 0 0 193 162,162 3,560,175

Commodity & other (excluding credit derivatives) 1,482,094 1,377,390 1,314,571 1,525,680 1,525,765 -2.9 0 0 34 112,551 1,369,508

Credit 4,073,984 4,145,034 4,276,958 4,341,695 4,178,619 -2.5 0 8 1,648 337,547 3,734,782

Total 207,257,854 203,961,393 178,089,173 209,766,666 209,840,178 -1.2 240 25,712 151,939 60,090,499 146,989,465

Derivative Contracts by Transaction Type 

Swaps 110,905,216 106,836,761 97,923,416 104,801,209 107,973,543 2.7 2 8,045 88,543 29,669,388 81,139,237

Futures & forwards 46,206,834 46,165,354 36,143,797 47,051,282 46,023,905 0.4 3 3,359 30,763 13,650,973 32,521,737

Purchased options 21,893,579 21,850,950 18,707,980 25,031,776 23,883,350 -8.3 1 310 12,921 8,014,546 13,865,801

Written options 21,794,090 22,283,503 19,300,817 25,769,336 25,142,041 -13.3 2 2,660 17,205 7,941,365 13,832,857

Total 200,799,718 197,136,567 172,076,010 202,653,603 203,022,839 -1.1 9 14,375 149,432 59,276,271 141,359,632

Fair Value of Derivative Contracts 

Interest rate contracts 55,925 53,806 47,241 53,594 49,617 12.7 0 76 -47 12,195 43,701

Foreign exchange contracts -2,565 10,800 11,282 25,827 23,843 N/M 0 0 5 2,676 -5,245

Equity contracts -1,110 -272 6,407 1,975 5,003 N/M 0 0 2 320 -1,432

Commodity & other (excluding credit derivatives) -2,161 -778 -1,873 2,948 1,181 N/M 0 0 0 81 -2,241

Credit derivatives as guarantor** 18,529 16,412 6,606 26,237 23,965 -22.7 0 0 3 975 17,551

Credit derivatives as beneficiary** -21,734 -18,387 -6,765 -26,912 -24,348 N/M 0 0 -6 -1,658 -20,070

Derivative Contracts by Maturity*** 

Interest rate contracts < 1 year 90,569,101 87,928,755 71,493,447 93,168,889 91,960,389 -1.5 58 6,837 30,772 24,340,315 66,191,120

 1-5 years 39,191,566 38,988,277 36,682,682 42,735,097 42,279,251 -7.3 8 2,262 37,158 9,774,088 29,378,050

 > 5 years 24,216,180 24,263,088 23,246,059 24,228,390 24,373,859 -0.6 9 8,603 54,526 7,273,092 16,879,951

Foreign exchange and gold contracts < 1 year 32,804,737 32,626,686 28,891,823 29,674,897 31,341,537 4.7 0 5 2,986 7,228,245 25,573,501

 1-5 years 4,340,277 4,364,397 4,218,682 4,928,405 4,906,415 -11.5 0 0 918 869,487 3,469,872

 > 5 years 2,170,971 2,181,911 2,095,962 2,470,383 2,472,893 -12.2 0 0 0 632,374 1,538,598

Equity contracts < 1 year 2,725,454 2,714,590 2,448,707 2,825,222 2,679,109 1.7 0 0 48 69,281 2,656,124

 1-5 years 972,497 957,790 863,793 963,096 867,817 12.1 0 0 38 49,157 923,303

 > 5 years 149,222 143,076 139,158 135,954 123,737 20.6 0 0 2 10,247 138,973

 Commodity & other contracts (including credit 

derivatives, excluding gold contracts) < 1 year 2,008,663 1,754,422 1,745,343 1,896,551 1,994,605 0.7 0 3 26 72,451 1,936,182

 1-5 years 2,803,027 2,847,105 3,105,744 3,017,006 3,019,612 -7.2 0 6 460 220,696 2,581,865

 > 5 years 260,548 528,263 298,075 537,194 309,072 -15.7 0 40 596 30,421 229,490

Risk-Based Capital: Credit Equivalent Amount 

Total current exposure to tier 1 capital (%) 23.9 22.0 22.7 23.9 24.5 0.1 0.9 1.3 15.2 35.1

Total potential future exposure to tier 1 capital (%) 36.6 37.6 36.0 40.9 39.5 0.1 0.4 0.9 19.1 57

Total exposure (credit equivalent amount) 

to tier 1 capital (%) 60.5 59.5 58.8 64.8 64.0 0.1 1.4 2.2 34.4 92.1

Credit losses on derivatives  26.3 9.1 11.7 11.6 2.8 839.3 0.0 0.0 -0.6 12.9 14.0

HELD FOR TRADING 

Number of institutions reporting derivatives 189 187 193 197 197 -4.1 0 24 90 67 8

Total assets of institutions reporting derivatives 13,222,400 12,931,735 12,768,696 12,612,012 12,484,349 5.9 0 11,951 294,502 4,120,938 8,795,009

Total deposits of institutions reporting derivatives 10,023,986 9,864,375 9,799,266 9,613,504 9,518,156 5.3 0 9,959 234,076 3,165,558 6,614,394

Derivative Contracts by Underlying Risk Exposure 

Interest rate 149,515,929 147,070,054 126,215,235 154,523,852 155,241,947 -3.7 0 473 37,800 48,346,653 101,131,003

Foreign exchange 43,278,150 42,441,495 38,768,802 40,241,704 40,144,539 7.8 0 0 3,806 9,923,579 33,350,765

Equity 3,704,416 3,659,003 3,359,405 3,628,434 3,402,588 8.9 0 0 20 151,217 3,553,179

Commodity & other 1,451,571 1,347,235 1,285,123 1,496,650 1,496,752 -3.0 0 0 15 83,670 1,367,886

Total 197,950,066 194,517,787 169,628,565 199,890,639 200,285,826 -1.2 0 473 41,641 58,505,119 139,402,833

Trading Revenues: Cash & Derivative Instruments 

Interest rate**  2,730 4,080 2,306 1,998 587 365.1 0 0 7 217 2,506

Foreign exchange** 2,900 2,254 1,971 3,130 4,569 -36.5 0 0 4 1,316 1,581

Equity** 2,464 2,895 -43 1,444 1,727 42.7 0 0 6 -78 2,536

Commodity & other (including credit derivatives)** -46 808 -202 487 501 N/M 0 0 0 -716 670

Total trading revenues** 8,048 10,037 4,031 7,059 7,385 9.0 0 0 17 738 7,293

Share of Revenue 

Trading revenues to gross revenues (%)** 4.8 6.2 2.5 4.5 4.8 0.0 0.0 0.4 1.5 6.5

Trading revenues to net operating revenues (%)** 18.9 24.4 10.1 16.8 17.8 0.0 0.0 2.0 6.1 24.6

HELD FOR PURPOSES OTHER THAN TRADING 

Number of institutions reporting derivatives 719 724 734 750 759 -5.3 5 196 390 119 9

Total assets of institutions reporting derivatives 16,229,102 16,008,090 15,816,221 15,575,002 15,481,315 4.8 407 95,708 1,187,055 5,845,504 9,100,428

Total deposits of institutions reporting derivatives 12,402,056 12,251,856 12,172,535 11,903,875 11,829,384 4.8 346 79,242 948,776 4,500,725 6,872,967

Derivative Contracts by Underlying Risk Exposure 

Interest rate 2,335,640 2,113,244 1,950,783 2,249,741 2,184,847 6.9 9 13,901 106,953 705,276 1,509,501

Foreign exchange 465,373 459,140 452,256 468,068 505,117 -7.9 0 1 645 26,049 438,679

Equity 18,116 16,241 14,959 16,125 18,036 0.4 0 0 173 10,946 6,996

Commodity & other 30,523 30,155 29,448 29,030 29,012 5.2 0 0 19 28,881 1,622

Total notional amount 2,849,652 2,618,781 2,447,445 2,762,964 2,737,012 4.1 9 13,902 107,791 771,152 1,956,799

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

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

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

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

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

not applicaable to banks filing the FFIEC 051 form.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 13

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

Asset Size Distribution

(dollar figures in millions)

2nd 

Quarter 

2019

1st 

Quarter

2019

4th 

Quarter

2018

3rd 

Quarter

2018

2nd 

Quarter

2018

% 

Change 

18Q2-

19Q2

Less 

Than 

$100 

Million

$100 

Million 

to $1 

Billion

$1 

Billion 

to $10 

Billion

$10 

Billion 

to $250 

Billion

Greater 

Than 

$250 

Billion

Assets Securitized and Sold with Servicing Retained or with 

Recourse or Other Seller-Provided Credit Enhancements 

Number of institutions reporting securitization activities 65 65 64 64 64 1.6 0 5 19 34 7

Outstanding Principal Balance by Asset Type 

1-4 family residential loans $465,275 $486,472 $520,030 $542,310 $560,132 -16.9 $0 $978 $13,140 $88,724 $362,433

Home equity loans 12 13 14 15 16 -25.0 0 0 0 12 0

Credit card receivables 0 0 22 24 26 -100.0 0 0 0 0 0

Auto loans 2,494 3,062 3,710 4,415 4,647 -46.3 0 0 0 2,494 0

Other consumer loans 1,603 1,668 1,738 1,806 1,887 -15.1 0 0 0 693 911

Commercial and industrial loans 558 550 453 360 271 105.9 0 0 0 0 558

All other loans, leases, and other assets 73,791 72,857 71,416 68,646 67,948 8.6 0 7 9,756 2,944 61,083

Total securitized and sold 543,733 564,622 597,383 617,576 634,927 -14.4 0 985 22,896 94,867 424,985

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 1,055 1,050 1,102 1,228 1,327 -20.5 0 0 48 764 243

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

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

Auto loans 86 94 104 114 125 -31.2 0 0 0 86 0

Other consumer loans 111 89 86 85 82 35.4 0 0 0 0 111

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

All other loans, leases, and other assets 1,230 1,257 1,208 1,112 1,266 -2.8 0 0 161 30 1,039

Total credit exposure 2,482 2,490 2,500 2,539 2,800 -11.4 0 0 209 880 1,393

Total unused liquidity commitments provided to institution’s own 

securitizations 185 230 213 226 144 28.5 0 0 0 23 162

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

1-4 family residential loans 4.0 3.5 3.6 4.1 3.5 0.0 2.7 0.8 3.2 4.3

Home equity loans 7.1 5.7 8.0 8.9 8.4 0.0 0.0 0.0 7.1 0.0

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

Auto loans 2.3 2.0 2.6 1.9 1.8 0.0 0.0 0.0 2.3 0.0

Other consumer loans 4.5 4.2 4.2 4.5 4.7 0.0 0.0 0.0 2.5 6.0

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

All other loans, leases, and other assets 0.2 0.2 0.2 0.2 0.3 0.0 0.0 0.5 1.1 0.2

Total loans, leases, and other assets 3.6 3.2 3.3 3.8 3.2 0.0 0.0 0.0 2.6 3.7

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

1-4 family residential loans 1.1 1.1 1.1 1.1 1.2 0.0 1.2 0.7 1.1 1.1

Home equity loans 35.9 39.4 39.0 40.2 42.6 0.0 0.0 0.0 35.9 0.0

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

Auto loans 0.5 0.5 0.5 0.4 0.4 0.0 0.0 0.0 0.5 0.0

Other consumer loans 4.0 4.1 4.3 4.3 6.0 0.0 0.0 0.0 1.9 5.6

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

All other loans, leases, and other assets 0.2 0.3 0.5 0.6 0.7 0.0 0.0 1.1 0.1 0.1

Total loans, leases, and other assets 0.9 1.0 1.0 1.0 1.2 0.0 0.0 0.0 0.6 0.9

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

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

Home equity loans 3.6 0.9 18.2 13.9 11.4 0.0 0.0 0.0 3.6 0.0

Credit card receivables 0.0 0.0 9.1 4.2 3.8 0.0 0.0 0.0 0.0 0.0

Auto loans 0.7 0.3 1.4 1.0 0.6 0.0 0.0 0.0 0.7 0.0

Other consumer loans 0.4 0.2 1.0 0.8 0.6 0.0 0.0 0.0 0.4 0.3

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

All other loans, leases, and other assets 0.1 0.1 1.1 0.4 0.3 0.0 0.0 0.1 0.2 0.1

Total loans, leases, and other assets 0.1 0.1 0.2 0.1 0.0 0.0 0.0 0.0 0.0 0.1

Seller’s Interests in Institution's Own Securitizations – Carried as Loans 

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

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

Commercial and industrial loans 644 623 427 361 306 110.5 0 0 0 0 644

Seller’s Interests in Institution's Own Securitizations – Carried as Securities 

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

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

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

Assets Sold with Recourse and Not Securitized 

Number of institutions reporting asset sales 437 442 469 476 474 -7.8 11 156 203 59 8

Outstanding Principal Balance by Asset Type 

1-4 family residential loans 97,125 25,583 26,298 25,828 24,727 292.8 132 67,729 19,972 7,642 1,650

All other loans, leases, and other assets 121,462 118,898 116,452 112,296 109,138 11.3 0 10 191 40,049 81,211

Total sold and not securitized 218,587 144,481 142,750 138,124 133,865 63.3 132 67,740 20,163 47,691 82,862

Maximum Credit Exposure by Asset Type 

1-4 family residential loans 10,410 7,377 7,677 7,943 7,632 36.4 5 2,891 3,962 2,794 759

All other loans, leases, and other assets 34,162 33,545 32,781 31,286 30,545 11.8 0 10 43 11,712 22,396

Total credit exposure 44,572 40,923 40,457 39,229 38,178 16.7 5 2,901 4,005 14,506 23,155

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others 0 0 0 0 0 0.0 0 0 0 0 0

Total credit exposure 23,532 22,527 23,013 24,792 26,570 -11.4 0 0 0 1,859 21,673

Total unused liquidity commitments 658 492 604 1,313 1,031 -36.2 0 0 0 295 363

Other

Assets serviced for others** 6,075,764 6,128,896 6,061,048 5,984,007 5,919,134 2.6 4,065 148,035 298,375 1,554,347 4,070,942

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others 16,249 17,150 17,366 16,898 16,069 1.1 0 0 0 0 16,249

Unused liquidity commitments to conduits sponsored by institutions 

 and others 29,907 29,998 31,491 30,447 30,593 -2.2 0 0 0 908 28,999

Net servicing income (for the quarter) -333 1,524 1,464 2,699 2,774 N/M 7 219 131 32 -721

Net securitization income (for the quarter) 72 79 65 64 -49 N/M 0 3 8 4 56

Total credit exposure to Tier 1 capital (%)*** 3.5 3.5 3.5 3.6 3.7 0.0 0.0 0.0 2.5 5.8

* Does not include banks filing the FFIEC 051 report form, which was introduced in first quarter 2017. N/M - Not Meaningful

** 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.

QUARTERLY BANKING PROFILE

FDIC QUARTERLY 15

COMMUNITY BANK PERFORMANCE

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

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

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

banks designated during the previous quarter.

Community Banks Report 8.1 Percent Increase in Net Income

Growth in Net Interest Income and Noninterest Income Increases Net Operating Revenue

Loan and Lease Balances Grow 6.3 Percent

Net Charge-Off and Noncurrent Rates Both Decline Year Over Year

Community Banks 

Report 8.1 Percent Increase 

in Net Income

Community banks reported net income of $6.9 billion in second quarter 2019, an increase 

of $522.2 million (8.1 percent) from second quarter 2018. Growth in net interest income 

(up 5.1 percent), noninterest income (up 4.7 percent), and gains on securities sales (up 

656.7 percent) drove the annual increase in net income, which was partially offset by 

an increase in noninterest expense (up 5.6 percent) and a modest increase in provision 

expense (up 2.3 percent). Community banks reported a pretax return on average assets of 

1.48 percent in second quarter 2019, up 7 basis points from a year ago, as the gap between 

community banks and noncommunity banks narrowed by 12 basis points over the same 

period. Ninety-six percent of community banks reported a profit during the quarter. At the 

end of second quarter 2019, there were 4,874 community banks. Fifty-four banks merged, 

one community bank opened, and one community bank failed during the quarter.

Growth in Net Interest 

Income and Noninterest 

Income Increases Net 

Operating Revenue

Net operating revenue rose to $24 billion at community banks in second quarter 2019, up 

$1.2 billion from a year ago owing to growth in net interest income (up 5.1 percent) and 

noninterest income (up 4.7 percent). Higher interest income on non-1-4 family real estate 

loans (up 13.3 percent), commercial and industrial (C&I) loans (up 17.1 percent), and 

1-4 family mortgage loans (up 9 percent) drove the increase in net interest income from a 

year ago. Noninterest income increased $212.1 million (4.7 percent) from second quarter 

2018 to $4.7 billion largely due to higher net gains from loan sales (up $206.9 million, or 

25.5 percent). More than half of community banks (56.8 percent) reported an increase in 

noninterest income from second quarter 2018.

Contributors to the Year-Over-Year Change in Income 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions

Net

Income

Net

Interest

Income

Loan Loss

Provisions

Noninterest

Income

Noninterest

Expense

Realized

Gains on

Securities

Income

Taxes

Positive Factor Negative Factor

0.0

0.5

1.0

$0.52 $0.94 $0.02 $0.21 $0.82 $0.20 $0.12

+8% +5% +2% +5% +6% +657% +10%

Chart 1

Source: FDIC.

Net Interest Margin

Percent 

Community Banks (3.68)

Industry (3.39)

2.75

3.00

3.25

3.50

3.75

4.00

4.25

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart 2
2 0 1 9  •  Volume 1 3 • Number 3

16 FDIC QUARTERLY

Change in Loan Balances and Unused Commitments 

FDIC-Insured Community Banks 

Source: FDIC.

$ Billions Change 2Q 2019 vs. 2Q 2018

Change 2Q 2019 vs. 1Q 2019

Loan Balances

Unused

Commitments

Nonfarm

Nonresidential

RE

C&I

Loans

1–4 Family

Residential

RE

C&D

Loans

Agricultural

Production

Loans

CRE &

C&D

C&I

Loans

0

5

10

15

20

25

30

35

40

32.3

17.3

9.4

15.7

1.8

7.3

10.4

8.2

6.2 6.9

1.8 2.6 4.1

1.9

Chart 3

Noncurrent Loan Rates for FDIC-Insured Community Banks

Source: FDIC.

Share of Loan Portfolio Noncurrent

Percent

0

2

4

6

8

10

12

14

16

C&D Loans

Nonfarm Nonresidential RE

1–4 Family RE

C&I Loans 

Farm Loans

Home Equity

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Chart 4

Net Interest Margin 

Remains Stable

The net interest margin narrowed 1 basis point from a year ago to 3.68 percent, as the 

increase in average funding costs slightly outpaced the increase in average earning asset 

yields. Average funding costs for community banks have been lower than funding costs for 

noncommunity banks for six consecutive quarters, reversing a ten-year trend from first quarter 2008 through first quarter 2018 during which community banks reported a higher cost 

of funds than noncommunity banks. Community banks funded 89 percent of the increase 

in earning assets with deposits during the year. Depositors added $82.7 billion (6 percent) to 

interest-bearing accounts and $14.7 billion (3.9 percent) to noninterest-bearing accounts at 

community banks from a year ago. Growth in short-term time deposits—time deposits with 

maturities of three years or less—led the increase in interest-bearing deposit volume.

Noninterest Expense Rises 

as Payroll Expense and 

Assets Increase

Noninterest expense increased to $15.3 billion in second quarter 2019, up $817.1 million 

(5.6 percent) from a year ago. Slightly more than three-quarters (75.7 percent) of community banks reported higher noninterest expense compared with second quarter 2018. 

Payroll expense increased $526.8 million (6.3 percent) from a year ago, as average assets per 

employee increased from $5.35 million to $5.56 million.

Loan and Lease Balances 

Grow 6.3 Percent

Loan and lease balances increased $34.6 billion (2.2 percent) to $1.6 trillion during second 

quarter 2019, as 73.1 percent of community banks reported higher loan and lease balances 

compared with the previous quarter. Growth in major loan categories—nonfarm nonresidential loans (30 percent of total loans at community banks), 1–4 family residential real 

estate loans (25 percent of total loans), C&I loans (14 percent of total loans) and construction 

and development (C&D) loans (7 percent of total loans)—drove the quarterly and annual 

increases in loan and lease balances.

Loan and lease balances rose $96.5 billion (6.3 percent) from second quarter 2018, led by 

growth in nonfarm nonresidential loans (up $32.3 billion, or 7.2 percent), C&I loans (up 

$17.3 billion, or 8.5 percent), 1–4 family residential real estate loans (up $15.7 billion, or 

4.1 percent), and C&D loans (up $9.4 billion, or 9 percent). Community banks continued to grow their small loans to businesses, adding $7.1 billion (2.4 percent) since second 

quarter 2018. Small loans to businesses held by community banks are 40.9 percent of the 

industry total.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 17

Asset Quality Metrics 

Remain Favorable

Noncurrent loan and lease balances declined $146 million (1.2 percent) during second quarter 2019. This decline contributed to an increase in the coverage ratio (loan and lease loss 

reserves to noncurrent loans) to 150.2 percent from 147.6 percent last quarter. The noncurrent rate for total loans declined 7 basis points to 0.75 percent from a year ago, reflecting 

a decline in noncurrent rates for major loan categories both quarterly and annually. The 

C&I noncurrent rate registered the largest decline among major loan categories during the 

quarter, falling 9 basis points to 0.88 percent.

The noncurrent rate for farm loans, of which community banks hold more than twice the 

volume held by noncommunity banks, was 1.28 percent in second quarter 2019, an increase 

of 13 basis points from a year ago but still below the recent high of 1.54 percent in first quarter 2010. The noncurrent rate for farmland loans increased 14 basis points from a year ago 

to 1.52 percent, and the noncurrent rate for agricultural production loans increased 11 basis 

points to 0.93 percent.

Net Charge-Off Rate 

Remains Low

Net charge-offs increased $69 million (19.3 percent) during the quarter and $20.6 million 

(5.1 percent) compared to second quarter 2018. The net charge-off rate for total loans was 

relatively flat at 0.11 percent (up 2 basis points quarterly), which is only slightly above the 

ten-year low of 0.09 percent and 46 basis points below that of noncommunity banks. The 

net charge-off rate for farm loans increased 4 basis points to 0.10 percent during the quarter. 

Of the major loan categories, only C&D loans registered a decline in the net charge-off rate 

during the quarter—down 2 basis points to negative 0.03 percent—as loan loss recoveries exceeded charge offs. The net charge-off rate for C&I loans increased 7 basis points to 

0.25 percent during the quarter.

Community Bank Capital 

Ratios Continue to Expand

Equity capital grew $24.8 billion (10.3 percent) during the year, supporting annual increases 

in all regulatory capital ratios. The total equity capital ratio increased 52 basis points to 

11.68 percent, the leverage capital ratio increased 17 basis points to 11.14 percent year over 

year, and the total risk based capital ratio increased 8 basis points to 15.80 percent.

Author:

Erica Jill Tholmer

Senior Financial Analyst

Division of Insurance and Research
2 0 1 9  •  Volume 1 3 • Number 3

18 FDIC QUARTERLY

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

2019* 2018* 2018 2017 2016 2015 2014

Return on assets (%) 1.20 1.14 1.19 0.96 0.99 0.99 0.93

Return on equity (%) 10.45 10.24 10.59 8.65 8.81 8.85 8.45

Core capital (leverage) ratio (%) 11.14 10.97 11.09 10.80 10.69 10.67 10.57

Noncurrent assets plus other real estate owned to assets (%) 0.66 0.75 0.70 0.78 0.94 1.07 1.34

Net charge-offs to loans (%) 0.10 0.14 0.12 0.16 0.16 0.15 0.21

Asset growth rate (%) 2.06 0.70 2.31 1.17 2.97 2.74 2.20

Net interest margin (%) 3.67 3.66 3.72 3.62 3.57 3.57 3.61

Net operating income growth (%) 3.34 14.08 28.16 0.21 2.42 9.57 4.78

Number of institutions reporting 4,874 5,112 4,981 5,228 5,462 5,736 6,037

Percentage of unprofitable institutions (%) 3.80 4.13 3.57 5.72 4.67 5.04 6.44

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

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

(dollar figures in millions)  2nd Quarter

2019

1st Quarter

2019

2nd Quarter

2018

%Change 

18Q2-19Q2

Number of institutions reporting 4,874 4,932 5,112 -4.7

Total employees (full-time equivalent) 407,901 406,575 415,477 -1.8

CONDITION DATA

Total assets $2,267,582 $2,258,777 $2,221,855 2.1

Loans secured by real estate 1,239,029 1,234,817 1,216,853 1.8

 1-4 Family residential mortgages 399,943 399,232 400,033 0.0

 Nonfarm nonresidential 479,116 477,544 468,395 2.3

 Construction and development 113,784 113,466 108,623 4.8

 Home equity lines 47,306 47,539 48,776 -3.0

Commercial & industrial loans 221,869 216,995 210,179 5.6

Loans to individuals 65,103 64,037 62,697 3.8

 Credit cards 2,025 1,988 1,885 7.5

Farm loans 53,410 50,933 52,095 2.5

Other loans & leases 43,265 40,150 39,804 8.7

Less: Unearned income 642 642 701 -8.5

Total loans & leases 1,622,035 1,606,289 1,580,927 2.6

Less: Reserve for losses 18,291 18,271 18,243 0.3

Net loans and leases 1,603,744 1,588,018 1,562,684 2.6

Securities 389,305 392,599 403,050 -3.4

Other real estate owned 2,834 2,985 3,571 -20.6

Goodwill and other intangibles 16,998 16,725 15,202 11.8

All other assets 254,701 258,450 237,348 7.3

Total liabilities and capital 2,267,582 2,258,777 2,221,855 2.1

Deposits 1,859,739 1,861,209 1,818,620 2.3

 Domestic office deposits 1,857,467 1,858,899 1,818,033 2.2

 Foreign office deposits 2,271 2,310 587 287.0

 Brokered deposits 75,516 77,356 74,726 1.1

Estimated insured deposits 1,350,104 1,355,680 1,335,071 1.1

Other borrowed funds 123,286 119,332 138,443 -10.9

Subordinated debt 631 618 629 0.4

All other liabilities 18,935 17,711 16,068 17.8

Total equity capital (includes minority interests) 264,991 259,907 248,095 6.8

 Bank equity capital 264,916 259,839 247,978 6.8

Loans and leases 30-89 days past due 8,031 9,212 7,432 8.1

Noncurrent loans and leases 12,178 12,375 12,925 -5.8

Restructured loans and leases 5,965 6,033 6,549 -8.9

Mortgage-backed securities 179,687 177,205 177,217 1.4

Earning assets 2,115,034 2,107,482 2,072,598 2.0

FHLB Advances 100,718 95,973 115,387 -12.7

Unused loan commitments 315,984 313,263 303,200 4.2

Trust assets 276,541 269,923 293,149 -5.7

Assets securitized and sold 12,908 12,965 19,148 -32.6

Notional amount of derivatives 99,265 83,604 78,089 27.1

INCOME DATA

First Half

 2019

First Half 

2018 %Change

2nd Quarter 

2019

2nd Quarter 

2018

%Change 

18Q2-19Q2

Total interest income $48,048 $43,782 9.7 $24,422 $22,383 9.1

Total interest expense 9,819 6,400 53.4 5,112 3,401 50.3

Net interest income 38,229 37,382 2.3 19,310 18,982 1.7

Provision for loan and lease losses 1,325 1,496 -11.5 673 678 -0.7

Total noninterest income 8,901 9,205 -3.3 4,695 4,710 -0.3

Total noninterest expense 30,160 30,016 0.5 15,326 15,126 1.3

Securities gains (losses) 405 91 345.5 234 31 664.4

Applicable income taxes 2,737 2,538 7.8 1,407 1,314 7.1

Extraordinary gains, net* 115 -162 N/M 118 -163 N/M

Total net income (includes minority interests) 13,428 12,466 7.7 6,949 6,441 7.9

 Bank net income 13,424 12,458 7.8 6,946 6,436 7.9

Net charge-offs 781 1,086 -28.1 426 590 -27.8

Cash dividends 6,671 5,320 25.4 3,417 2,921 17.0

Retained earnings 6,754 7,138 -5.4 3,529 3,516 0.4

Net operating income 12,973 12,554 3.3 6,631 6,581 0.8

* See Notes to Users for explanation. N/M - Not Meaningful
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 19

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

Prior Periods Adjusted for Mergers

(dollar figures in millions)  2nd Quarter 

2019

1st Quarter 

2019

2nd Quarter

2018

%Change 

18Q2-19Q2

Number of institutions reporting 4,874 4,870 4,867 0.1

Total employees (full-time equivalent) 407,901 403,002 401,912 1.5

CONDITION DATA

Total assets $2,267,582 $2,238,343 $2,149,512 5.5

Loans secured by real estate 1,239,029 1,218,664 1,169,668 5.9

 1-4 Family residential mortgages 399,943 393,048 384,243 4.1

 Nonfarm nonresidential 479,116 470,911 446,828 7.2

 Construction and development 113,784 111,996 104,385 9.0

 Home equity lines 47,306 47,059 47,172 0.3

Commercial & industrial loans 221,869 215,689 204,557 8.5

Loans to individuals 65,103 63,225 61,202 6.4

 Credit cards 2,025 1,980 2,005 1.0

Farm loans 53,410 50,820 51,634 3.4

Other loans & leases 43,265 39,621 39,109 10.6

Less: Unearned income 642 629 666 -3.7

Total loans & leases 1,622,035 1,587,390 1,525,503 6.3

Less: Reserve for losses 18,291 18,097 17,747 3.1

Net loans and leases 1,603,744 1,569,293 1,507,756 6.4

Securities 389,305 394,334 395,274 -1.5

Other real estate owned 2,834 2,938 3,406 -16.8

Goodwill and other intangibles 16,998 16,546 15,133 12.3

All other assets 254,701 255,232 227,942 11.7

Total liabilities and capital 2,267,582 2,238,343 2,149,512 5.5

Deposits 1,859,739 1,844,447 1,762,042 5.5

 Domestic office deposits 1,857,467 1,842,137 1,760,060 5.5

 Foreign office deposits 2,271 2,310 1,982 14.6

 Brokered deposits 75,516 76,747 71,624 5.4

Estimated insured deposits 1,350,104 1,343,483 1,292,781 4.4

Other borrowed funds 123,286 118,214 130,837 -5.8

Subordinated debt 631 618 620 1.9

All other liabilities 18,935 17,532 15,762 20.1

Total equity capital (includes minority interests) 264,991 257,532 240,252 10.3

 Bank equity capital 264,916 257,464 240,141 10.3

Loans and leases 30-89 days past due 8,031 9,157 7,268 10.5

Noncurrent loans and leases 12,178 12,324 12,545 -2.9

Restructured loans and leases 5,965 6,030 6,392 -6.7

Mortgage-backed securities 179,687 177,763 173,810 3.4

Earning assets 2,115,034 2,088,720 2,005,031 5.5

FHLB Advances 100,718 94,981 108,492 -7.2

Unused loan commitments 315,984 310,403 293,266 7.7

Trust assets 276,541 268,537 260,358 6.2

Assets securitized and sold 12,908 12,965 14,113 -8.5

Notional amount of derivatives 99,265 81,473 72,967 36.0

INCOME DATA

First Half 

2019

First Half

2018 %Change

2nd Quarter 

2019

2nd Quarter 

2018

%Change 

18Q2-19Q2

Total interest income $48,048 $42,231 13.8 $24,422 $21,675 12.7

Total interest expense 9,819 6,175 59.0 5,112 3,310 54.5

Net interest income 38,229 36,056 6.0 19,310 18,365 5.1

Provision for loan and lease losses 1,325 1,447 -8.5 673 658 2.3

Total noninterest income 8,901 8,725 2.0 4,695 4,483 4.7

Total noninterest expense 30,160 28,705 5.1 15,326 14,509 5.6

Securities gains (losses) 405 86 372.4 234 31 656.7

Applicable income taxes 2,737 2,455 11.5 1,407 1,285 9.5

Extraordinary gains, net* 115 2 N/M 118 1 N/M

Total net income (includes minority interests) 13,428 12,263 9.5 6,949 6,427 8.1

 Bank net income 13,424 12,256 9.5 6,946 6,424 8.1

Net charge-offs 781 883 -11.6 426 405 5.1

Cash dividends 6,671 5,283 26.3 3,417 2,870 19.1

Retained earnings 6,754 6,973 -3.1 3,529 3,554 -0.7

Net operating income 12,973 12,190 6.4 6,631 6,402 3.6

* See Notes to Users for explanation. N/M - Not Meaningful
2 0 1 9  •  Volume 1 3 • Number 3

20 FDIC QUARTERLY

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

Second Quarter 2019

(dollar figures in millions) All Community Banks

Geographic Regions*

New York Atlanta Chicago Kansas City Dallas San Francisco

Number of institutions reporting 4,874 552 561 1,073 1,304 1,085 299

Total employees (full-time equivalent) 407,901 83,284 45,641 83,857 71,971 88,728 34,420

CONDITION DATA

Total assets $2,267,582 $619,673 $230,159 $397,946 $373,103 $421,133 $225,569

Loans secured by real estate 1,239,029 385,019 126,300 209,657 184,502 211,185 122,365

 1-4 Family residential mortgages 399,943 137,499 39,625 68,256 55,040 68,070 31,453

 Nonfarm nonresidential 479,116 139,676 55,381 78,957 62,268 85,936 56,897

 Construction and development 113,784 26,440 14,268 16,667 16,187 29,659 10,564

 Home equity lines 47,306 14,943 6,252 10,010 5,334 4,907 5,860

Commercial & industrial loans 221,869 56,158 19,238 42,177 39,641 42,457 22,198

Loans to individuals 65,103 15,916 6,395 12,251 11,070 12,938 6,532

 Credit cards 2,025 427 144 247 566 213 428

Farm loans 53,410 641 1,447 8,498 30,178 9,616 3,030

Other loans & leases 43,265 12,439 3,267 8,171 6,809 7,912 4,666

Less: Unearned income 642 161 90 48 107 131 105

Total loans & leases 1,622,035 470,013 156,558 280,705 272,094 283,978 158,687

Less: Reserve for losses 18,291 4,393 1,755 3,209 3,543 3,438 1,953

Net loans and leases 1,603,744 465,620 154,803 277,497 268,550 280,539 156,734

Securities 389,305 92,329 42,101 72,008 63,818 82,370 36,679

Other real estate owned 2,834 500 557 531 493 611 142

Goodwill and other intangibles 16,998 4,884 1,194 2,951 2,438 3,174 2,357

All other assets 254,701 56,339 31,504 44,959 37,804 54,438 29,657

Total liabilities and capital 2,267,582 619,673 230,159 397,946 373,103 421,133 225,569

Deposits 1,859,739 490,873 192,573 328,707 307,569 353,940 186,076

 Domestic office deposits 1,857,467 490,188 192,573 328,578 307,569 353,940 184,619

 Foreign office deposits 2,271 685 1 129 0 0 1,457

 Brokered deposits 75,516 25,744 4,935 14,193 14,026 10,122 6,496

 Estimated insured deposits 1,350,104 343,241 139,959 256,874 238,615 252,377 119,039

Other borrowed funds 123,286 50,041 9,056 19,338 20,004 14,616 10,231

Subordinated debt 631 509 13 36 10 42 21

All other liabilities 18,935 6,435 1,701 2,992 2,500 3,069 2,237

Total equity capital (includes minority interests) 264,991 71,814 26,817 46,872 43,020 49,465 27,003

 Bank equity capital 264,916 71,789 26,813 46,848 43,019 49,444 27,002

Loans and leases 30-89 days past due 8,031 1,743 867 1,531 1,509 1,841 538

Noncurrent loans and leases 12,178 3,492 1,179 2,243 2,157 2,344 763

Restructured loans and leases 5,965 2,034 603 1,378 845 698 406

Mortgage-backed securities 179,687 52,938 19,446 29,741 23,033 33,429 21,100

Earning assets 2,115,034 580,771 213,514 371,159 348,926 390,589 210,076

FHLB Advances 100,718 44,067 7,430 14,924 15,702 11,204 7,390

Unused loan commitments 315,984 85,606 27,581 56,415 55,230 54,272 36,880

Trust assets 276,541 55,868 8,973 58,577 92,878 42,089 18,155

Assets securitized and sold 12,908 7,599 69 1,061 2,804 950 424

Notional amount of derivatives 99,265 39,554 8,573 14,880 15,212 13,337 7,708

INCOME DATA

Total interest income $24,422 $6,364 $2,498 $4,214 $4,116 $4,742 $2,488

Total interest expense 5,112 1,633 475 849 862 881 412

Net interest income 19,310 4,731 2,023 3,366 3,254 3,861 2,076

Provision for loan and lease losses 673 144 59 109 138 159 64

Total noninterest income 4,695 916 471 1,120 834 974 380

Total noninterest expense 15,326 3,669 1,692 2,858 2,543 3,089 1,475

Securities gains (losses) 234 71 38 72 20 26 7

Applicable income taxes 1,407 422 144 266 187 187 201

Extraordinary gains, net** 118 118 0 0 0 -1 0

Total net income (includes minority interests) 6,949 1,602 637 1,324 1,241 1,423 722

 Bank net income 6,946 1,601 637 1,323 1,241 1,422 722

Net charge-offs 426 94 33 63 88 97 50

Cash dividends 3,417 784 214 796 678 620 326

Retained earnings 3,529 817 423 526 563 802 397

Net operating income 6,631 1,425 606 1,258 1,222 1,403 717

* See Table V-A for explanation.

** See Notes to Users for explanation.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 21

Table IV-B. Second Quarter 2019, FDIC-Insured Community Banks

Performance ratios (annualized, %)

All Community Banks Second Quarter 2019, Geographic Regions*

 2nd Quarter 

2019

1st Quarter 

2019 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.65 4.58 4.42 4.72 4.57 4.74 4.89 4.78

Cost of funding earning assets 0.97 0.91 1.14 0.90 0.92 0.99 0.91 0.79

Net interest margin 3.68 3.67 3.29 3.83 3.65 3.75 3.98 3.99

Noninterest income to assets 0.83 0.76 0.60 0.83 1.13 0.90 0.93 0.68

Noninterest expense to assets 2.72 2.69 2.39 2.97 2.89 2.74 2.95 2.64

Loan and lease loss provision to assets 0.12 0.12 0.09 0.10 0.11 0.15 0.15 0.12

Net operating income to assets 1.18 1.14 0.93 1.06 1.27 1.32 1.34 1.28

Pretax return on assets 1.48 1.40 1.32 1.37 1.61 1.54 1.54 1.65

Return on assets 1.23 1.16 1.04 1.12 1.34 1.34 1.36 1.29

Return on equity 10.65 10.17 9.02 9.70 11.46 11.71 11.73 10.85

Net charge-offs to loans and leases 0.11 0.09 0.08 0.09 0.09 0.13 0.14 0.13

Loan and lease loss provision to net charge-offs 158.15 183.08 153.42 176.75 171.74 157.09 163.47 128.97

Efficiency ratio 63.48 64.02 64.65 67.31 63.29 61.78 63.62 59.84

Net interest income to operating revenue 80.44 81.82 83.78 81.11 75.03 79.59 79.86 84.53

% of unprofitable institutions 4.00 4.06 4.89 6.60 4.85 1.99 3.32 5.69

% of institutions with earnings gains 59.85 62.67 58.88 62.03 58.99 58.51 59.82 66.56

Table V-B. First Half 2019, FDIC-Insured Community Banks

Performance ratios (%)

All Community Banks First Half 2019, Geographic Regions*

First Half

 2019

First Half 

2018 New York Atlanta Chicago Kansas City Dallas San Francisco

Yield on earning assets 4.62 4.29 4.40 4.70 4.53 4.68 4.83 4.79

Cost of funding earning assets 0.94 0.63 1.10 0.87 0.89 0.96 0.88 0.77

Net interest margin 3.67 3.66 3.29 3.83 3.64 3.72 3.95 4.01

Noninterest income to assets 0.80 0.84 0.57 0.79 1.10 0.84 0.88 0.68

Noninterest expense to assets 2.70 2.75 2.38 2.95 2.87 2.72 2.91 2.63

Loan and lease loss provision to assets 0.12 0.14 0.09 0.10 0.10 0.15 0.16 0.13

Net operating income to assets 1.16 1.15 0.93 1.06 1.27 1.27 1.30 1.30

Pretax return on assets 1.45 1.37 1.30 1.34 1.56 1.47 1.48 1.67

Return on assets 1.20 1.14 1.02 1.10 1.30 1.28 1.31 1.30

Return on equity 10.45 10.24 8.86 9.58 11.24 11.29 11.43 11.02

Net charge-offs to loans and leases 0.10 0.14 0.08 0.08 0.07 0.12 0.14 0.11

Loan and lease loss provision to net charge-offs 169.69 137.72 148.22 184.82 191.41 175.29 172.65 163.87

Efficiency ratio 63.63 64.12 64.62 67.31 63.51 62.51 63.89 59.23

Net interest income to operating revenue 81.11 80.24 84.35 81.89 75.57 80.60 80.69 84.60

% of unprofitable institutions 3.80 4.13 4.89 5.53 4.19 2.53 2.95 5.69

% of institutions with earnings gains 62.47 74.92 61.41 65.06 62.53 58.82 64.42 68.23

* See Table V-A for explanation.
2 0 1 9  •  Volume 1 3 • Number 3

22 FDIC QUARTERLY

Table VI-B. Loan Performance, FDIC-Insured Community Banks

June 30, 2019

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 0.45 0.34 0.51 0.56 0.51 0.58 0.27

Construction and development 0.45 0.34 0.46 0.51 0.52 0.45 0.49

Nonfarm nonresidential 0.30 0.24 0.29 0.37 0.36 0.40 0.18

Multifamily residential real estate 0.17 0.11 0.16 0.40 0.25 0.11 0.12

Home equity loans 0.43 0.46 0.49 0.43 0.32 0.47 0.35

Other 1-4 family residential 0.68 0.53 0.86 0.82 0.65 0.89 0.37

Commercial and industrial loans 0.47 0.29 0.64 0.44 0.53 0.61 0.51

Loans to individuals 1.34 1.53 1.44 0.77 0.94 2.08 1.07

Credit card loans 2.16 2.58 1.34 0.95 3.37 1.57 1.38

Other loans to individuals 1.31 1.50 1.45 0.77 0.81 2.09 1.05

All other loans and leases (including farm) 0.52 0.21 0.28 0.50 0.70 0.55 0.31

Total loans and leases 0.49 0.37 0.55 0.55 0.55 0.65 0.34

Percent of Loans Noncurrent**

All loans secured by real estate 0.73 0.77 0.76 0.83 0.73 0.76 0.41

Construction and development 0.58 0.62 0.67 0.59 0.65 0.48 0.56

Nonfarm nonresidential 0.63 0.66 0.60 0.74 0.63 0.72 0.31

Multifamily residential real estate 0.18 0.15 0.32 0.30 0.22 0.25 0.06

Home equity loans 0.49 0.60 0.50 0.47 0.28 0.44 0.52

Other 1-4 family residential 0.94 1.16 0.98 0.97 0.58 0.92 0.54

Commercial and industrial loans 0.88 0.79 0.74 0.78 0.98 1.08 0.80

Loans to individuals 0.53 0.34 0.68 0.33 0.40 1.07 0.35

Credit card loans 0.89 1.13 0.32 0.47 1.31 0.53 0.72

Other loans to individuals 0.52 0.31 0.69 0.33 0.35 1.08 0.33

All other loans and leases (including farm) 0.81 0.29 0.62 0.81 1.03 0.77 0.85

Total loans and leases 0.75 0.74 0.75 0.80 0.79 0.83 0.48

Percent of Loans Charged-Off (net, YTD)

All loans secured by real estate 0.03 0.04 0.02 0.03 0.02 0.05 0.00

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

Nonfarm nonresidential 0.05 0.05 0.02 0.04 0.04 0.09 0.00

Multifamily residential real estate 0.00 0.01 0.01 -0.01 0.01 0.00 -0.01

Home equity loans 0.03 0.04 0.01 0.05 0.01 0.02 -0.01

Other 1-4 family residential 0.03 0.04 0.02 0.02 0.02 0.03 -0.01

Commercial and industrial loans 0.21 0.17 0.21 0.16 0.25 0.28 0.26

Loans to individuals 0.89 0.81 0.87 0.37 1.08 0.93 1.66

Credit card loans 6.04 3.61 3.03 1.73 14.76 1.81 2.58

Other loans to individuals 0.72 0.73 0.82 0.35 0.33 0.92 1.60

All other loans and leases (including farm) 0.18 0.13 0.14 0.25 0.13 0.27 0.22

Total loans and leases 0.10 0.08 0.08 0.07 0.12 0.14 0.11

Loans Outstanding (in billions)

All loans secured by real estate $1,239.0 $385.0 $126.3 $209.7 $184.5 $211.2 $122.4

Construction and development 113.8 26.4 14.3 16.7 16.2 29.7 10.6

Nonfarm nonresidential 479.1 139.7 55.4 79.0 62.3 85.9 56.9

Multifamily residential real estate 121.9 64.0 6.3 18.0 11.3 8.5 13.7

Home equity loans 47.3 14.9 6.3 10.0 5.3 4.9 5.9

Other 1-4 family residential 399.9 137.5 39.6 68.3 55.0 68.1 31.5

Commercial and industrial loans 221.9 56.2 19.2 42.2 39.6 42.5 22.2

Loans to individuals 65.1 15.9 6.4 12.3 11.1 12.9 6.5

Credit card loans 2.0 0.4 0.1 0.2 0.6 0.2 0.4

Other loans to individuals 63.1 15.5 6.3 12.0 10.5 12.7 6.1

All other loans and leases (including farm) 96.7 13.1 4.7 16.7 37.0 17.5 7.7

Total loans and leases 1,622.7 470.2 156.6 280.8 272.2 284.1 158.8

Memo: Unfunded Commitments (in millions)

Total Unfunded Commitments 315,984 85,606 27,581 56,415 55,230 54,272 36,880

Construction and development: 1-4 family residential 25,971 5,145 3,476 3,093 3,558 7,550 3,149

Construction and development: CRE and other 66,718 20,466 6,525 11,060 9,146 12,934 6,588

Commercial and industrial 102,264 28,777 7,313 20,188 16,868 17,227 11,890

* See Table V-A for explanation.

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

FDIC QUARTERLY 23

Insurance Fund Indicators

Deposit Insurance Fund Increases by $2.6 Billion

DIF Reserve Ratio Rises 4 Basis Points to 1.40 Percent

Small Bank Credits Will Be Applied to Second Quarter Assessments

During the second quarter, the Deposit Insurance Fund (DIF) balance increased by 

$2.6 billion to $107.4 billion. Assessment income of $1.2 billion and unrealized gains on 

available-for-sale securities of $694 million were the largest drivers of the increase. Negative provisions for losses added $610 million and interest earned on investments added 

$535 million, while operating expenses reduced the fund by $459 million. One small institution with total assets of $37 million failed during the second quarter of 2019.

The deposit insurance assessment base—average consolidated total assets minus average 

tangible equity—increased by 0.7 percent in the second quarter and by 3.7 percent over 

12 months.1, 2 Total estimated insured deposits decreased by 0.1 percent in the second quarter of 2019 but rose by 4.6 percent year over year.

The strong growth in the fund balance, combined with flat insured deposit growth, 

increased the DIF reserve ratio (the fund balance as a percent of estimated insured deposits) to 1.40 percent on June 30, 2019, the highest level since September 30, 1999. The second 

quarter reserve ratio is 4 basis points higher than at March 31, 2019, and 7 basis points 

higher than the previous year.

Small banks earned a total of $765 million in credits for the portion of their assessments that 

contributed to growth in the reserve ratio from 1.15 percent to 1.35 percent. The credits are 

automatically applied to offset the assessments of small banks when the reserve ratio is at 

least 1.38 percent.3 Therefore, the FDIC will apply approximately $320 million of credits to 

offset the second quarter assessments of small banks, which will be due September 30, 2019.

Author:

Kevin Brown

Senior Financial Analyst

Division of Insurance and Research

1 There are additional adjustments to the assessment base for banker’s banks and custodial banks.

2 Figures for estimated insured deposits and the assessment base include insured branches of foreign banks, in addition to insured 

commercial banks and savings institutions.

3 In August 2019, the FDIC Board of Directors authorized a notice of proposed rulemaking (NPR) that would require the FDIC to 

apply the small bank credits in any assessment quarter in which the reserve ratio is at least 1.35 percent.
2 0 1 9  •  Volume 1 3 • Number 3

24 FDIC QUARTERLY

DIF Reserve Ratios

Percent of Insured Deposits

1.24 1.27 1.30 1.30 1.33 1.36 1.36

1.17 1.18 1.20 1.20

1.36 1.40

6/16 9/16 12/16 3/17 6/17 9/17 12/17 3/18 6/18 9/18 12/18 3/19 6/19

Table I-C. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund*

2nd 

Quarter 

2019

1st 

Quarter 

2019

4th 

Quarter 

2018

3rd 

Quarter 

2018

2nd 

Quarter 

2018

1st 

Quarter 

2018

4th 

Quarter 

2017

3rd 

Quarter 

2017

2nd 

Quarter 

2017

1st 

Quarter 

2017

4th 

Quarter 

2016

3rd 

Quarter 

2016

2nd 

Quarter 

2016

Beginning Fund Balance $104,870 $102,609 $100,204 $97,588 $95,072 $92,747 $90,506 $87,588 $84,928 $83,162 $80,704 $77,910 $75,120

Changes in Fund Balance:

Assessments earned 1,187 1,369 1,351 2,728 2,598 2,850 2,656 2,568 2,634 2,737 2,688 2,643 2,328

Interest earned on 

investment securities 535 507 481 433 381 338 305 274 251 227 189 171 164

Realized gain on sale of

investments 0 0 0 0 0 0 0 0 0 0 0 0 0

Operating expenses 459 434 453 434 445 433 443 404 450 442 437 422 441

Provision for insurance 

losses -610 -396 -236 -121 -141 -65 -203 -512 -233 765 -332 -566 -627

All other income, 

net of expenses 9 2 2 2 3 1 3 1 4 2 3 3 2

Unrealized gain/(loss) on 

available-for-sale 

securities** 694 421 788 -234 -162 -496 -481 -33 -12 7 -317 -167 110

Total fund balance change 2,576 2,261 2,405 2,616 2,516 2,325 2,242 2,918 2,660 1,766 2,457 2,794 2,790

Ending Fund Balance 107,446 104,870 102,609 100,204 97,588 95,072 92,747 90,506 87,588 84,928 83,162 80,704 77,910

Percent change from 

 four quarters earlier 10.10 10.31 10.63 10.72 11.42 11.95 11.53 12.14 12.42 13.06 14.55 15.10 15.27

Reserve Ratio (%) 1.40 1.36 1.36 1.36 1.33 1.30 1.30 1.27 1.24 1.20 1.20 1.18 1.17

Estimated Insured 

Deposits 7,691,598 7,699,901 7,525,393 7,377,158 7,355,373 7,334,658 7,156,067 7,101,090 7,049,332 7,081,095 6,917,200 6,817,375 6,674,365

Percent change from 

 four quarters earlier 4.57 4.98 5.16 3.89 4.34 3.58 3.45 4.16 5.62 6.29 6.11 6.41 5.38

Domestic Deposits 12,788,777 12,725,359 12,659,395 12,367,954 12,280,904 12,305,817 12,129,503 11,966,478 11,827,933 11,856,691 11,693,371 11,506,877 11,242,960

Percent change from 

 four quarters earlier 4.14 3.41 4.37 3.36 3.83 3.79 3.73 3.99 5.20 6.28 6.76 7.56 5.74

Assessment Base*** 15,673,568 15,562,369 15,450,464 15,227,751 15,112,199 15,068,151 15,000,701 14,833,644 14,702,429 14,620,363 14,562,672 14,382,469 14,191,487

Percent change from 

 four quarters earlier 3.71 3.28 3.00 2.66 2.79 3.06 3.01 3.14 3.60 4.47 5.28 5.27 4.43

Number of Institutions 

Reporting 5,312 5,371 5,415 5,486 5,551 5,616 5,679 5,747 5,796 5,865 5,922 5,989 6,067

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

6/16 $77,910 $6,674,365

9/16 80,704 6,817,375

12/16 83,162 6,917,200

3/17 84,928 7,081,095

6/17 87,588 7,049,332

9/17 90,506 7,101,090

12/17 92,747 7,156,067

3/18 95,072 7,334,658

6/18 97,588 7,355,373

9/18 100,204 7,377,158

12/18 102,609 7,525,393

3/19 104,870 7,699,901

6/19 107,446 7,691,598

Table II-C. Problem Institutions and Failed Institutions

(dollar figures in millions) 2019  2018** ** 2018 2017 2016 2015 2014 2013

Problem Institutions

Number of institutions 56 82 60 95 123 183 291 467

Total assets $48,505 $54,378 $48,489 $13,939 $27,624 $46,780 $86,712 $152,687

Failed Institutions

Number of institutions 1 0 0 8 5 8 18 24

Total assets***** $37 $0 $0 $5,082 $277 $6,706 $2,914 $6,044

* Quarterly financial statement results are unaudited.

** Includes unrealized postretirement benefit gain (loss).

*** Average consolidated total assets minus tangible equity, with adjustments for banker’s banks and custodial banks.

  Through June 30.

** *** Total assets are based on final Call Reports submitted by failed institutions.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 25

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

(dollar figures in millions)

June 30, 2019

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks 4,630 $17,098,031 $11,823,312 $6,899,756

 FDIC-Supervised 3,086 2,674,036 2,119,423 1,448,410

 OCC-Supervised 798 11,489,918 7,666,963 4,336,012

 Federal Reserve-Supervised 746 2,934,078 2,036,926 1,115,334

FDIC-Insured Savings Institutions 673 1,169,203 924,306 755,207

 OCC-Supervised 305 765,291 619,575 516,632

 FDIC-Supervised 332 373,314 280,423 219,105

 Federal Reserve-Supervised 36 30,598 24,309 19,470

Total Commercial Banks and Savings Institutions 5,303 18,267,235 12,747,618 7,654,964

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks 9 93,034 41,159 36,634

Total FDIC-Insured Institutions 5,312 18,360,268 12,788,777 7,691,598

* Excludes $1.3 trillion in foreign office deposits, which are not FDIC insured.

Table IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range

Quarter Ending March 31, 2019 (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

1.50 - 3.00 3,376 62.86 $7,820.4 50.25

3.01 - 6.00 1,421 26.46 6,743.0 43.33

6.01 - 10.00 441 8.21 887.9 5.71

10.01 - 15.00 60 1.12 74.5 0.48

15.01 - 20.00 62 1.15 22.7 0.15

20.01 - 25.00 4 0.07 1.2 0.01

> 25.00 7 0.13 12.6 0.08

* Assessment rates do not incorporate temporary surcharges on large banks.

** 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.
2 0 1 9  •  Volume 1 3 • Number 3

26 FDIC QUARTERLY

Notes to Users

This publication contains financial data and other information for 

depository institutions insured by the Federal Deposit Insurance 

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

data and reporting differences over time.

Tables I-A through VIII-A.

The information presented in Tables I-A through VIII-A of the 

FDIC Quarterly Banking Profile is aggregated for all FDIC-insured 

Call Report filers, both commercial banks and savings institutions. 

Some tables are arrayed by groups of FDIC-insured institutions 

based on predominant types of asset concentration, while other tables 

aggregate institutions by asset size and geographic region. Quarterly 

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

aggregate condition and income data, performance ratios, condition 

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

charge-off information for loans outstanding and other assets.

Tables I-B through VI-B.

The information presented in Tables I-B through VI-B is aggregated 

for all FDIC-insured commercial banks and savings institutions 

meeting the criteria for community banks that were developed for 

the FDIC’s Community Banking Study, published in December, 2012: 

http://www.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 non-brokered deposits in domestic offices. 

Analysis of the underlying data shows that these thresholds establish 

meaningful levels of basic lending and deposit gathering and still 

allow for a degree of diversity in how individual banks construct their 

balance sheets.

The fourth step includes organizations that operate within a limited geographic scope. This limitation of scope is used as a proxy 

measure for a bank’s relationship approach to banking. Banks that 

operate within a limited market area have more ease in managing 

relationships at a personal level. Under this step, four criteria are 

applied to each banking organization. They include both a minimum and maximum number of total banking offices, a maximum 

level of deposits for any one office, and location-based criteria. 

The limits on the number of and deposits per office are adjusted 

upward quarterly. For banking offices, banks must have more than 

one office, and the maximum number of offices is 40 in 1985 and 

reached 87 in 2016. The maximum level of deposits for any one 

office is $1.25 billion in deposits in 1985 and reached $6.97 billion 

in deposits in 2016. The remaining geographic limitations are also 

based on maximums for the number of states (fixed at 3) and large 

metropolitan areas (fixed at 2) in which the organization maintains 

offices. Branch office data are based on the most recent data from 

the annual June 30 Summary of Deposits Survey that are available at 

the time of publication. 

Finally, the definition establishes an asset-size limit, also adjusted 

upward quarterly and below which the limits on banking activities 

and geographic scope are waived. The asset-size limit is $250 million 

in 1985 and reached $1.39 billion in 2016. This final step acknowledges the fact that most of those small banks that are not excluded 

as specialty banks meet the requirements for banking activities and 

geographic limits in any event.

Summary of FDIC Research Definition of Community 

Banking Organizations

Community banks are designated at the level of the banking 

organization.

(All charters under designated holding companies are considered 

community banking charters.)

Exclude: Any organization with:

— No loans or no core deposits

— 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

• Number of large MSAs with offices ≤ 2

• Number of states with offices ≤ 3

• No single office with deposits > indexed maximum branch 

deposit size.4

Tables I-C through IV-C.

A separate set of tables (Tables I-C through IV-C) provides comparative quarterly data related to the Deposit Insurance Fund (DIF), 

problem institutions, failed institutions, estimated FDIC-insured 

deposits, as well as assessment rate information. Depository insti1 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 $1.39 billion in 2016.

3 Maximum number of offices indexed to equal 40 in 1985 and 87 in 2016.

4 Maximum branch deposit size indexed to equal $1.25 billion in 1985 and $6.97 billion 

in 2016.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 27

tutions that are not insured by the FDIC through the DIF are not 

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

institutions headquartered in foreign countries and non-deposit trust 

companies are not included unless otherwise indicated. Efforts are 

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

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

that have closed or converted their charters.

DATA SOURCES

The financial information appearing in this publication is obtained 

primarily from the Federal Financial Institutions Examination 

Council (FFIEC) Consolidated Reports of Condition and Income 

(Call Reports) and the OTS Thrift Financial Reports (TFR) submitted 

by all FDIC-insured depository institutions. (TFR filers began filing 

Call Reports effective with the quarter ending March 31, 2012.) This 

information is stored on and retrieved from the FDIC’s Research 

Information System (RIS) database.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, while 

their subsidiary financial institutions are still required to file separate reports. Data from subsidiary institution reports are included 

in the Quarterly Banking Profile tables, which can lead to doublecounting. No adjustments are made for any double-counting of subsidiary data. Additionally, certain adjustments are made to the OTS 

Thrift Financial Reports to provide closer conformance with the 

reporting and accounting requirements of the FFIEC Call Reports.

(TFR filers began filing Call Reports effective with the quarter 

ending March 31, 2012.)

All condition and performance ratios represent weighted averages, 

which is the sum of the individual numerator values divided by the 

sum of individual denominator values. All asset and liability figures 

used in calculating performance ratios represent average amounts for 

the period (beginning-of-period amount plus end-of-period amount 

plus any interim periods, divided by the total number of periods). For 

“pooling-of-interest” mergers, the assets of the acquired institution(s) 

are included in average assets, since the year-to-date income includes 

the results of all merged institutions. No adjustments are made for 

“purchase accounting” mergers. Growth rates represent the percentage change over a 12-month period in totals for institutions in the 

base period to totals for institutions in the current period. For the 

community bank subgroup, growth rates will reflect changes over 

time in the number and identities of institutions designated as community banks, as well as changes in the assets and liabilities, and 

income and expenses of group members. Unless indicated otherwise, 

growth rates are not adjusted for mergers or other changes in the 

composition of the community bank subgroup. When community 

bank growth rates are adjusted for mergers, prior period balances 

used in the calculations represent totals for the current group of community bank reporters, plus prior period amounts for any institutions 

that were subsequently merged into current community banks.

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

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

and liabilities located outside of the reporting institution’s home 

state. In addition, institutions may relocate across state lines or 

change their charters, resulting in an inter-regional or inter-industry 

migration; institutions can move their home offices between regions, 

savings institutions can convert to commercial banks, or commercial 

banks may convert to savings institutions.

ACCOUNTING CHANGES

Financial accounting pronouncements by the Financial Accounting 

Standards Board (FASB) can result in changes in an individual 

bank’s accounting policies and in the Call Reports they submit. Such 

accounting changes can affect the aggregate amounts presented in the 

QBP for the current period and the period-to-period comparability of 

such financial data. 

The current quarter’s Financial Institution Letter (FIL) and related 

Call Report supplemental instructions can provide additional explanation to the QBP reader beyond any material accounting changes 

discussed in the QBP analysis.

https://www.fdic.gov/news/news/financial/2019/fil19040.html

https://www.fdic.gov/news/news/financial/2019/fil19040.pdf

https://www.fdic.gov/regulations/resources/call/call.html

Further information on changes in financial statement presentation, 

income recognition and disclosure is available from the FASB. http://

www.fasb.org/jsp/FASB/Page/LandingPage&cid=1175805317350.

DEFINITIONS (in alphabetical order)

All other assets – total cash, balances due from depository institutions, premises, fixed assets, direct investments in real estate, 

investment in unconsolidated subsidiaries, customers’ liability on 

acceptances outstanding, assets held in trading accounts, federal 

funds sold, securities purchased with agreements to resell, fair market value of derivatives, prepaid deposit insurance assessments, and 

other assets.

All other liabilities – bank’s liability on acceptances, limited-life preferred stock, allowance for estimated off-balance-sheet credit losses, 

fair market value of derivatives, and other liabilities.

Assessment base – effective April 1, 2011, the deposit insurance 

assessment base changed to “average consolidated total assets minus 

average tangible equity” with an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under 

Dodd-Frank. Previously the assessment base was “assessable deposits” and consisted of deposits in banks’ domestic offices with certain 

adjustments.

Assessment rate schedule – Initial base assessment rates for small 

institutions are based on a combination of financial ratios and 

CAMELS component ratings. Initial rates for large institutions—

generally those with at least $10 billion in assets—are also based 

on CAMELS component ratings and certain financial measures 

combined into two scorecards—one for most large institutions and 

another for the remaining very large institutions that are structurally 

and operationally complex or that pose unique challenges and risks 

in case of failure (highly complex institutions). The FDIC may take 

additional information into account to make a limited adjustment to 

a large institution’s scorecard results, which are used to determine a 

large institution’s initial base assessment rate.

While risk categories for small institutions (except new institutions) were eliminated effective July 1, 2016, initial rates for small 

institutions are subject to minimums and maximums based on an 

institution’s CAMELS composite rating. (Risk categories for large 

institutions were eliminated in 2011.)

The current assessment rate schedule became effective July 1, 2016. 

Under the current schedule, initial base assessment rates range 

from 3 to 30 basis points. An institution’s total base assessment rate 
2 0 1 9  •  Volume 1 3 • Number 3

28 FDIC QUARTERLY

may differ from its initial rate due to three possible adjustments: 

(1) Unsecured Debt Adjustment: An institution’s rate may decrease 

by up to 5 basis points for unsecured debt. The unsecured debt 

adjustment cannot exceed the lesser of 5 basis points or 50 percent 

of an institution’s initial base assessment rate (IBAR). Thus, for 

example, an institution with an IBAR of 3 basis points would have a 

maximum unsecured debt adjustment of 1.5 basis points and could 

not have a total base assessment rate lower than 1.5 basis points. 

(2) Depository Institution Debt Adjustment: For institutions that 

hold long-term unsecured debt issued by another insured depository institution, a 50 basis point charge is applied to the amount of 

such debt held in excess of 3 percent of an institution’s Tier 1 capital. 

(3) Brokered Deposit Adjustment: Rates for large institutions that are 

not well capitalized or do not have a composite CAMELS rating of 

1 or 2 may increase (not to exceed 10 basis points) if their brokered 

deposits exceed 10 percent of domestic deposits.

The assessment rate schedule effective July 1, 2016, is shown in the 

following table:

Total Base Assessment Rates*

Established Small Banks Large and 

Highly 

Complex 

Institutions**

CAMELS Composite

1 or 2 3 4 or 5

Initial Base 

Assessment Rate 3 to 16 6 to 30 16 to 30 3 to 30

Unsecured Debt 

Adjustment -5 to 0 -5 to 0 -5 to 0 -5 to 0

Brokered Deposit 

Adjustment N/A N/A N/A 0 to 10

Total Base 

Assessment Rate 1.5 to 16 3 to 30 11 to 30 1.5 to 40

* 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.

 ** Effective July 1, 2016, large institutions are also subject to temporary 

assessment surcharges in order to raise the reserve ratio from 1.15 percent to 

1.35  percent. The surcharges amount to 4.5 basis points of a large institution’s 

assessment base (after making certain adjustments).

Each institution is assigned a risk-based rate for a quarterly assessment period near the end of the quarter following the assessment 

period. Payment is generally due on the 30th day of the last month 

of the quarter following the assessment period. Supervisory rating 

changes are effective for assessment purposes as of the examination 

transmittal date.

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other sellerprovided credit enhancements.

Capital Purchase Program (CPP) – as announced in October 2008 

under the TARP, the Treasury Department purchase of noncumulative perpetual preferred stock and related warrants that is treated as 

Tier 1 capital for regulatory capital purposes is included in “Total 

equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued by publicly-traded banks are 

reflected as well in “Surplus.” Warrants to purchase common stock or 

noncumulative preferred stock of not-publicly-traded bank stock are 

classified in a bank’s balance sheet as “Other liabilities.”

Common equity Tier 1 capital ratio – ratio of common equity 

Tier 1 capital to risk-weighted assets. Common equity Tier 1 capital 

includes common stock instruments and related surplus, retained 

earnings, accumulated other comprehensive income (AOCI), and 

limited amounts of common equity Tier 1 minority interest, minus 

applicable regulatory adjustments and deductions. Items that are fully 

deducted from common equity Tier 1 capital include goodwill, other 

intangible assets (excluding mortgage servicing assets) and certain 

deferred tax assets; items that are subject to limits in common equity 

Tier 1 capital include mortgage servicing assets, eligible deferred tax 

assets, and certain significant investments.

Construction and development loans – includes loans for all 

property types under construction, as well as loans for land acquisition and development.

Core capital – common equity capital plus noncumulative perpetual 

preferred stock plus minority interest in consolidated subsidiaries, 

less goodwill and other ineligible intangible assets. The amount of 

eligible intangibles (including servicing rights) included in core capital is limited in accordance with supervisory capital regulations.

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets.

Credit enhancements – techniques whereby a company attempts to 

reduce the credit risk of its obligations. Credit enhancement may be 

provided by a third party (external credit enhancement) or by the 

originator (internal credit enhancement), and more than one type of 

enhancement may be associated with a given issuance.

Deposit Insurance Fund (DIF) – the Bank (BIF) and Savings 

Association (SAIF) Insurance Funds were merged in 2006 by the 

Federal Deposit Insurance Reform Act to form the DIF.

Derivatives notional amount – the notional, or contractual, amounts 

of derivatives represent the level of involvement in the types of 

derivatives transactions and are not a quantification of market risk or 

credit risk. Notional amounts represent the amounts used to calculate 

contractual cash flows to be exchanged.

Derivatives credit equivalent amount – the fair value of the derivative plus an additional amount for potential future credit exposure 

based on the notional amount, the remaining maturity and type of 

the contract.

Derivatives transaction types:

Futures and forward contracts – contracts in which the buyer 

agrees to purchase and the seller agrees to sell, at a specified future 

date, a specific quantity of an underlying variable or index at a 

specified price or yield. These contracts exist for a variety of variables or indices, (traditional agricultural or physical commodities, 

as well as currencies and interest rates). Futures contracts are 

standardized and are traded on organized exchanges which set 

limits on counterparty credit exposure. Forward contracts do not 

have standardized terms and are traded over the counter.

Option contracts – contracts in which the buyer acquires the right 

to buy from or sell to another party some specified amount of an 

underlying variable or index at a stated price (strike price) during 

a period or on a specified future date, in return for compensation 

(such as a fee or premium). The seller is obligated to purchase or 

sell the variable or index at the discretion of the buyer of the 

contract.

Swaps – obligations between two parties to exchange a series of 

cash flows at periodic intervals (settlement dates), for a specified 

period. The cash flows of a swap are either fixed, or determined 

for each settlement date by multiplying the quantity (notional 

principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged.
QUARTERLY BANKING PROFILE

FDIC QUARTERLY 29

Derivatives underlying risk exposure – the potential exposure characterized by the level of banks’ concentration in particular underlying 

instruments, in general. Exposure can result from market risk, credit 

risk, and operational risk, as well as, interest rate risk.

Domestic deposits to total assets – total domestic office deposits as 

a percent of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn interest or 

dividend income.

Efficiency ratio – Noninterest expense less amortization of intangible 

assets as a percent of net interest income plus noninterest income. 

This ratio measures the proportion of net operating revenues that 

are absorbed by overhead expenses, so that a lower value indicates 

greater efficiency.

Estimated insured deposits – in general, insured deposits are total 

domestic deposits minus estimated uninsured deposits. 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 noninterest-bearing transaction accounts as a new 

temporary deposit insurance account category. All funds held in 

noninterest-bearing 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-forsale 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 sellerprovided credit enhancements provided by the reporting bank to 

securitizations.

Mortgage-backed securities – certificates of participation in pools 

of residential mortgages and collateralized mortgage obligations 

issued or guaranteed by government-sponsored or private enterprises. Also, see “Securities,” below.

Net charge-offs – total loans and leases charged off (removed from 

balance sheet because of uncollectability), less amounts recovered on 

loans and leases previously charged off.

Net interest margin – the difference between interest and dividends 

earned on interest-bearing assets and interest paid to depositors and 

other creditors, expressed as a percentage of average earning assets. 

No adjustments are made for interest income that is tax exempt.

Net loans to total assets – loans and lease financing receivables, net 

of unearned income, allowance and reserves, as a percent of total 

assets on a consolidated basis.

Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and 

extraordinary items. Income taxes subtracted from operating income 

have been adjusted to exclude the portion applicable to securities 

gains (or losses).

Noncurrent assets – the sum of loans, leases, debt securities, and 

other assets that are 90 days or more past due, or in nonaccrual status.

Noncurrent loans & leases – the sum of loans and leases 90 days or 

more past due, and loans and leases in nonaccrual status.

Number of institutions reporting – the number of institutions that 

actually filed a financial report.

New reporters – insured institutions filing quarterly financial reports 

for the first time.

Other borrowed funds – federal funds purchased, securities sold with 

agreements to repurchase, demand notes issued to the U.S. Treasury, 

FHLB advances, other borrowed money, mortgage indebtedness, 

obligations under capitalized leases and trading liabilities, less revaluation losses on assets held in trading accounts.

Other real estate owned – primarily foreclosed property. Direct and 

indirect investments in real estate ventures are excluded. The amount 

is reflected net of valuation allowances. For institutions that filed a 

Thrift Financial Report (TFR), the valuation allowance subtracted also 

includes allowances for other repossessed assets. Also, for TFR filers 

the components of other real estate owned are reported gross of valuation allowances. (TFR filers began filing Call Reports effective with 

the quarter ending March 31, 2012.)

Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their losses) compared to the same period a year earlier.

“Problem” institutions – federal regulators assign a composite rating 

to each financial institution, based upon an evaluation of financial 

and operational criteria. The rating is based on a scale of 1 to 5 in 

ascending order of supervisory concern. “Problem” institutions are 

those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending 

upon the degree of risk and supervisory concern, they are rated 

either a “4” or “5.” The number and assets of “problem” institutions 

are based on FDIC composite ratings. Prior to March 31, 2008, for 

institutions whose primary federal regulator was the OTS, the OTS 

composite rating was used.
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30 FDIC QUARTERLY

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-weighted assets – assets adjusted for risk-based capital definitions which include on-balance-sheet as well as off-balance-sheet 

items multiplied by risk-weights that range from zero to 200 percent. 

A conversion factor is used to assign a balance sheet equivalent 

amount for selected off-balance-sheet accounts.

Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity” 

(reported at amortized cost (book value)), securities designated as 

“available-for-sale” (reported at fair (market) value), and equity 

securities with readily determinable fair values not held for trading.

Securities gains (losses) – realized gains (losses) on held-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. 

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 and contra accounts – unearned income for Call 

Report filers only.

Unused loan commitments – includes credit card lines, home equity 

lines, commitments to make loans for construction, loans secured 

by commercial real estate, and unused commitments to originate 

or purchase loans. (Excluded are commitments after June 2003 for 

originated mortgage loans held for sale, which are accounted for as 

derivatives on the balance sheet.)

Yield on earning assets – total interest, dividend, and fee income 

earned on loans and investments as a percentage of average 

earning assets.