FDIC Quarterly 1 2010, Volume 4, No. 3

Quarterly Banking Profile Second Quarter 2010

Quarterly Earnings Are Highest in Almost Three Years

Reductions in loan-loss provisions underscored improvement in asset quality indicators during second quarter 

2010. The industry’s quarterly earnings of $21.6 billion 

are up dramatically from the year-ago loss of $4.4 billion 

and represent the highest quarterly earnings since third 

quarter 2007. Almost two out of three institutions (65.5 

percent) reported higher year-over-year quarterly net 

income. The proportion of institutions reporting quarterly net losses remained high at 20 percent but was 

down from more than 29 percent a year earlier.

Reduced Loan-Loss Provisions Boost Net Income

Insured institutions added $40.3 billion in provisions to 

their loan-loss allowances in the second quarter. While 

still high by historic standards, this is the smallest total 

since the industry set aside $37.2 billion in first quarter 

2008 and is $27.1 billion (40.2 percent) less than the 

industry’s provisions in second quarter 2009. Fewer than 

half of all institutions (41.3 percent) reported yearover-year reductions in quarterly loss provisions. Only 

40 percent of community banks (institutions with less 

than $1 billion in assets) reported year-over-year 

declines. Reductions were more prevalent among larger 

institutions. More than half (56.2 percent) of institutions with assets greater than $1 billion had lower 

provisions in the second quarter.

Margins Improve at a Majority of Banks

Net interest income was $8.5 billion (8.6 percent) higher 

than a year ago, as more than 70 percent of all institutions 

reported year-over-year increases. Net interest margins 

at almost 60 percent of institutions (58.6 percent) 

improved from a year earlier, as average funding costs 

fell more rapidly than average asset yields. The magnitude of the increase in net interest income was largely 

attributable to the application of Financial Accounting 

Standards Board (FASB) Statements 166 and 167 in 

2010 at a small number of institutions with significant 

levels of securitized consumer loans; among other 

things, the new rules require that revenues from securitized loan pools that had previously been included in 

noninterest income be reflected in net interest income.1

1

 See Notes to Users.

■ Insured Institutions Reported $21.6 Billion in Net Income

■ Provisions for Loan Losses Fell to Lowest Level in Two Years

■ Asset Quality Indicators Improved During the Quarter

■ Balance Sheets Continued to Shrink

INSURED INSTITUTION PERFORMANCE

Net Income Continued to Recover

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

Billions of Dollars

2006 2007 2008 2009 2010

-40

-30

-20

-10

0

10

20

30

40

50

60

Securities and Other Gains/Losses, Net

Net Operating Income

36.9 38.0 38.0 35.3 35.6 36.8

28.7

0.5

19.3

4.8 0.9

-37.8

5.5

-4.4

2.0

-1.7

17.8

21.6

Chart 1 Chart 2

Two out of Three Institutions Reported

Improved Earnings

0

10

20

30

40

50

60

70

1234123412341234123412

Percent of Institutions with 

Year-over-Year Increases in Quarterly Net Income

2005 2006 2007 2008 2009 2010
FDIC Quarterly 2 2010, Volume 4, No. 3

Chart 4

Margins Improved at Community Banks

Assets < $1 Billion

Assets > $1 Billion

3.80

3.76

2.5

3.0

3.5

4.0

4.5

123412341234123412341 2

Quarterly Net Interest Margin

(Percent)

2005 2006 2007 2008 2009 2010

Noninterest Income Is Lower

Noninterest expense was $1.5 billion (1.5 percent) less 

than in second quarter 2009, when insured institutions 

paid $5.6 billion in a special assessment to bolster the 

Deposit Insurance Fund. More than half of all institutions (52.1 percent) reported year-over-year reductions 

in quarterly noninterest expense. Noninterest income 

was $7.6 billion (11.0 percent) lower than a year 

earlier, with some of the decline reflecting reporting 

changes attributable to FASB 166 and 167. The 

components of noninterest income that registered the 

largest year-over-year declines were servicing income 

(down $6.9 billion, or 63.9 percent) and gains on sales 

of loans and other assets (down $4.4 billion, or 89 

percent). Income from service charges on deposit 

accounts was $752 million (7.1 percent) lower than a 

year earlier at banks that filed Call Reports. This is the 

seventh consecutive quarter that service charge income 

has declined year-over-year.

Charge-Offs Fall for First Time Since 2006

Net charge-offs totaled $49 billion in the second quarter, a $214-million (0.4 percent) decline from a year 

earlier and the first year-over-year decline since fourth 

quarter 2006. Charge-offs were lower than a year ago in 

most major loan categories except for credit cards and 

real estate loans secured by nonfarm nonresidential 

properties. Charge-offs on loans to commercial and 

industrial (C&I) borrowers were $3.1 billion (37.0 

percent) lower than a year ago, while charge-offs on 

real estate construction and development (C&D) loans 

were $2.7 billion (34.6 percent) lower. Charge-offs of 

one-to-four family residential mortgage loans were 

down by $1.4 billion (16.0 percent). Credit card 

charge-offs were $8.6 billion (86 percent) higher than 

in second quarter 2009. Most, if not all, of this increase 

was attributable to the inclusion of charge-offs on securitized credit card balances, which were not included in 

reported charge-offs in previous years. The change in 

reporting was the result of the application of FASB 166 

and 167. In contrast, the $1.8 billion (107.2 percent) 

year-over-year increase in charge-offs of nonfarm 

nonresidential real estate loans reflected further deterioration in commercial real estate portfolios. Almost half 

(49.1 percent) of insured institutions with more than 

$1 billion in assets reported lower net charge-offs, while 

only 43.6 percent of community banks reported yearover-year declines.

Noncurrent Loans Post First Decline in 

More than Four Years

The amount of loans and leases that were noncurrent 

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

declined by $19.6 billion (4.8 percent) during the 

second quarter. This is the first quarterly decline in 

noncurrent loans since first quarter 2006. Noncurrent 

levels declined in most major loan categories during the 

quarter. The sole exception was nonfarm nonresidential 

real estate loans, where noncurrents increased by $547 

million (1.2 percent), the smallest quarterly increase in 

three years. The largest reduction in noncurrent loans 

in the quarter occurred in real estate C&D loans, where 

noncurrents fell by $5.9 billion (8.3 percent). This is 

the third consecutive quarter that noncurrent C&D 

loans have declined. Noncurrent C&I loans also 

Chart 3

Lower Loan-Loss Provisions Helped Lift Profits

Year-over-Year Change in Quarterly Earnings

(Billions of Dollars)

Positive Factors

Negative Factors

$10.0

$27.1 $7.6

$8.5

$3.4

$3.1

$1.5

Increase in

Income Taxes 

Increase in Net

Interest Income

Decline in Extraordinary Losses

Increase in Realized Gains on Securities

Decline in Noninterest Expenses

Decline in

Noninterest Income 

Decline in Loss

Provisions

50

45

40

35

30

25

20

15

10

5

0
FDIC Quarterly 3 2010, Volume 4, No. 3

Quarterly Banking Profile

Rising Securities Values Contribute to Equity 

Capital Growth

Bank equity capital increased by $27.4 billion (1.9 

percent), as retained earnings contributed $8.7 billion 

and appreciation of securities holdings added $13.7 

billion. More than half of all institutions (52.7 percent) 

increased their leverage capital ratios during the quarter, while an even larger percentage (57.6 percent) 

increased their total risk-based capital ratios. Insured 

institutions paid $12.9 billion in dividends in the 

second quarter, more than double the $6.1 billion they 

paid a year earlier.

Loan Balances Continue to Decline

Industry assets declined for the fifth time in the past six 

quarters. Total assets fell by $136.2 billion (1 percent), 

as net loan and lease balances declined by $95.7 billion 

(1.3 percent). All major loan categories had reduced 

balances during the quarter. Real estate C&D loans 

fell by $34.7 billion (8.3 percent), credit card balances 

dropped by $17.6 billion (2.5 percent), residential mortgage loans declined by $13.2 billion (0.7 percent), and 

C&I loans were down $12.1 billion (1 percent). Loans 

to small businesses and farms declined by $13.3 billion 

(1.8 percent) during the quarter, while loans to larger 

businesses and farms fell by $5.3 billion (0.4 percent). 

Balances at Federal Reserve banks declined by $49 

billion (8.2 percent) during the quarter at banks that 

filed Call Reports. Intangible assets fell by $15.1 billion 

(3.6 percent), led by a $13.9 billion (18.7 percent) 

decline in mortgage servicing assets. The few areas of 

asset growth in the second quarter included federal 

declined for a third straight quarter, falling by $2.7 

billion (7.3 percent), while noncurrent residential 

mortgage loans declined by $4.7 billion (2.5 percent) 

and noncurrent credit cards fell by $4.2 billion (19 

percent). Slightly fewer than half of all institutions 

(48.9 percent) reported declines in their noncurrent 

loan balances during the quarter. Noncurrent loan 

balances fell by 5.3 percent at institutions with more 

than $1 billion in assets and rose by 0.3 percent at 

community banks.

Reserves Fall as Large Banks Reduce Loan-Loss 

Provisions

Total loan-loss reserves of insured institutions fell for 

the first time since fourth quarter 2006, declining by 

$11.8 billion (4.5 percent), as net charge-offs of $49 

billion exceeded loss provisions of $40.3 billion. Almost 

two out of three institutions (61.7 percent) increased

their loss reserves in the second quarter, but a number 

of large banks reduced their loss provisions, producing 

net declines in their reserve balances. In particular, 

some institutions that converted equity capital into 

reserves in the first quarter in accordance with the 

requirements of FASB 166 and 167 reported lower 

provisioning in the second quarter. Although the industry’s ratio of reserves to total loans fell from 3.50 

percent to 3.40 percent during the quarter, it is still the 

second-highest level for this ratio in the 63 years for 

which data are available. The industry’s “coverage 

ratio” of reserves to noncurrent loans improved for a 

second consecutive quarter, from 64.9 percent to 65.1 

percent, as the reduction in noncurrent loans slightly 

outpaced the decline in loss reserves.

Chart 5

Asset Quality Indicators Are Showing Signs

of a Turnaround

0

1

2

3

4

5

6

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Noncurrent Loan Rate

Quarterly Net Charge-off Rate

Percent of Total Loans & Leases

Chart 6

Institutions Are Reducing the Riskiness of

Their Asset Portfolios

Risk-Weighted Assets to Total Assets

(Percent)

60

62

64

66

68

70

72

74

76

78

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

9/30/2000 6/30/2007
FDIC Quarterly 4 2010, Volume 4, No. 3

No New Charters Were Added During the Quarter

The number of FDIC-insured institutions reporting 

financial results fell by 104 in the second quarter, from 

7,934 to 7,830. This is the first time in almost ten years 

that the number of reporting institutions has fallen by 

more than 100 in a single quarter (the number declined 

by 113 in third quarter 2000). During the quarter, 57 

institutions were absorbed by mergers into other charters, including 29 charters that were consolidated as 

part of a single corporate reorganization, and 45 insured 

institutions failed. For the first time in the 38 years for 

which data are available, no new insured institutions 

were added during the quarter. The number of institutions on the FDIC’s “Problem List” increased from 775 

to 829 during the quarter. Total assets of “problem” 

institutions fell, from $431 billion to $403 billion.

Author: Ross Waldrop, Sr. Banking Analyst

Division of Insurance and Research

(202) 898-3951

funds sold and securities purchased under resale agreements (up $11.3 billion, or 2.7 percent), and U.S. 

Treasury securities (up $8.1 billion, or 5.2 percent). The 

industry continued to reduce holdings of riskier assets; 

the ratio of risk-weighted assets (as defined for riskbased capital purposes) to total assets fell from 69.4 

percent to 69.1 percent during the quarter. This is the 

lowest level for this ratio since the second quarter 

of 1995.

Banks Reduce Nondeposit Funding

Deposits fell for the second quarter in a row, declining 

by $57.8 billion (0.6 percent). Interest-bearing deposits 

in domestic offices were down by $45.4 billion (0.7 

percent), while noninterest-bearing domestic deposits 

increased by $20.8 billion (1.4 percent). Deposits in 

foreign offices declined by $33.2 billion (2.2 percent). 

Nondeposit liabilities fell by $105.4 billion (3.9 percent), 

as institutions reduced Federal Home Loan Bank 

advances by $35 billion (7.3 percent) and short-term 

unsecured borrowings by $48.2 billion (23 percent).

Chart 7

Banks Are Relying Less on Nondeposit Liabilities

-40

-30

-20

-10

0

10

20

30

1 23412341234123412341234123412

Nondeposit Liabilities

Insured Deposits

Uninsured Deposits

2003 2004 2 2005 2006 2007 2008 2009 010

Twelve-Month Growth Rate

(Percent)

Chart 8

The Number of “Problem” Institutions Is Highest

in 17 Years

Number of Institutions

48 50 47 50 53 61 65 76 90 117

171

252

305

416

552

702

775

829

0

100

200

300

400

500

600

700

800

900

123412341234123412

2006 2007 2008 2009 2010
FDIC Quarterly 5 2010, Volume 4, No. 3

Quarterly Banking Profile

TABLE I-A. Selected Indicators, All FDIC-Insured Institutions* 2010** 2009** 2009 2008 2007 2006 2005

Return on assets (%)������������������������������������������������������������������������������������������������������ 0.61 0.03 0.07 0.03 0.81 1.

Return on equity (%)������������������������������������������������������������������������������������������������������� 5.48 0.30 0.71 0.35 7.75 12.3

Core capital (leverage) ratio (%) ������������������������������������������������������������������������������������ 8.77 8.24 8.63 7.47 7.97 8.

Noncurrent assets plus other real estate owned to assets (%) ������������������������������������ 3.31 2.77 3.36 1.91 0.95 0.

Net charge-offs to loans (%) ������������������������������������������������������������������������������������������ 2.74 2.25 2.50 1.29 0.59 0.

Asset growth rate (%) ����������������������������������������������������������������������������������������������������� -0.60 0.00 -5.30 6.19 9.88 9.

Net interest margin (%)��������������������������������������������������������������������������������������������������� 3.81 3.43 3.47 3.16 3.29 3.

Net operating income growth (%)����������������������������������������������������������������������������������� 567.08 -77.21 50.78 -90.70 -27.59 8.5

Number of institutions reporting������������������������������������������������������������������������������������� 7,830 8,195 8,012 8,305 8,534 8,680 8,833

Commercial banks��������������������������������������������������������������������������������������������������� 6,676 6,995 6,839 7,086 7,283 7,401 7,526

Savings institutions ������������������������������������������������������������������������������������������������� 1,154 1,200 1,173 1,219 1,251 1,279 1,307

Percentage of unprofitable institutions (%)�������������������������������������������������������������������� 20.32 27.70 30.68 24.88 12.09 7.

Number of problem institutions �������������������������������������������������������������������������������������� 829 416 702 252 76 50 52

Assets of problem institutions (in billions) ��������������������������������������������������������������������� $403 $300 $403 $159 $22 $8 $7

Number of failed institutions������������������������������������������������������������������������������������������� 86 45 140 25 3 0 0

Number of assisted institutions�������������������������������������������������������������������������������������� 0 0 8 5 0 0 0

* Excludes insured branches of foreign banks (IBAs)

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

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

(dollar figures in millions) 2nd Quarter

2010

1st Quarter

2010

2nd Quarter

2009

%Change 

09Q2-10Q2

Number of institutions reporting������������������������������������������������������������������������������������� 7,830 7,934 8,195 -4.

Total employees (full-time equivalent)��������������������������������������������������������������������������� 2,033,662 2,027,247 2,093,066 -2.

CONDITION DATA

Total assets��������������������������������������������������������������������������������������������������������������������� $13,220,551 $13,356,798 $13,300,007 -0.

Loans secured by real estate���������������������������������������������������������������������������������� 4,336,825 4,401,538 4,651,638 -6.

 1-4 family residential mortgages ��������������������������������������������������������������������� 1,874,335 1,887,551 2,012,537 -6.

 Nonfarm nonresidential������������������������������������������������������������������������������������ 1,081,004 1,090,644 1,086,496 -0.

 Construction and development 383,313 418,017 535,733 -28.

 Home equity lines��������������������������������������������������������������������������������������������� 654,450 659,871 672,906 -2.

Commercial & industrial loans �������������������������������������������������������������������������������� 1,174,939 1,187,070 1,364,713 -13.

Loans to individuals������������������������������������������������������������������������������������������������� 1,359,543 1,380,445 1,037,135 31.

 Credit cards ������������������������������������������������������������������������������������������������������ 699,404 716,998 398,233 75.

Farm loans��������������������������������������������������������������������������������������������������������������� 58,270 55,600 58,352 -0.

Other loans & leases����������������������������������������������������������������������������������������������� 468,562 480,905 516,323 -9.

Less: Unearned income ������������������������������������������������������������������������������������������ 2,794 2,711 2,903 -3.

Total loans & leases ������������������������������������������������������������������������������������������������ 7,395,345 7,502,849 7,625,258 -3.

Less: Reserve for losses����������������������������������������������������������������������������������������� 251,290 263,065 211,157 19.

Net loans and leases����������������������������������������������������������������������������������������������� 7,144,055 7,239,783 7,414,102 -3.

Securities����������������������������������������������������������������������������������������������������������������� 2,527,735 2,531,647 2,336,957 8.

Other real estate owned������������������������������������������������������������������������������������������ 49,285 46,265 33,928 45.

Goodwill and other intangibles ������������������������������������������������������������������������������� 409,757 424,879 431,395 -5.

All other assets�������������������������������������������������������������������������������������������������������� 3,089,719 3,114,224 3,083,625 0.

Total liabilities and capital ���������������������������������������������������������������������������������������������� 13,220,551 13,356,798 13,300,007 -0.

Deposits������������������������������������������������������������������������������������������������������������������� 9,140,980 9,198,770 9,021,146 1.

 Domestic office deposits���������������������������������������������������������������������������������� 7,667,695 7,692,326 7,555,214 1.

 Foreign office deposits������������������������������������������������������������������������������������� 1,473,285 1,506,444 1,465,932 0.

Other borrowed funds ��������������������������������������������������������������������������������������������� 1,911,837 2,051,791 2,159,362 -11.

Subordinated debt��������������������������������������������������������������������������������������������������� 150,986 150,540 168,125 -10.

All other liabilities ���������������������������������������������������������������������������������������������������� 510,148 476,035 529,986 -3.

Total equity capital (includes minority interests)���������������������������������������������������� 1,506,599 1,479,662 1,421,388 6.

 Bank equity capital������������������������������������������������������������������������������������������� 1,487,435 1,459,993 1,403,711 6.

Loans and leases 30-89 days past due������������������������������������������������������������������������� 125,191 141,492 141,247 -11.

Noncurrent loans and leases ����������������������������������������������������������������������������������������� 385,805 405,395 331,899 16.

Restructured loans and leases �������������������������������������������������������������������������������������� 71,614 64,412 46,577 53.

Mortgage-backed securities ������������������������������������������������������������������������������������������ 1,381,160 1,386,427 1,365,416 1.

Earning assets���������������������������������������������������������������������������������������������������������������� 11,389,950 11,554,019 11,436,792 -0.

FHLB Advances�������������������������������������������������������������������������������������������������������������� 445,400 480,364 634,642 -29.

Unused loan commitments��������������������������������������������������������������������������������������������� 6,007,195 6,104,579 6,305,132 -4.

Trust assets��������������������������������������������������������������������������������������������������������������������� 17,606,001 18,096,538 16,975,455 3.

Assets securitized and sold ������������������������������������������������������������������������������������������� 1,411,808 1,413,926 1,865,371 -24.

Notional amount of derivatives***���������������������������������������������������������������������������������� 225,433,522 218,068,203 208,656,901 8.

INCOME DATA

First Half 

2010

First Half 

2009 %Change

2nd Quarter 

2010

2nd Quarter 

2009

%Change 

09Q2-10Q2

Total interest income ������������������������������������������������������������������� $273,091 $279,906 -2.4 $135,182 $137,832 -1

Total interest expense ����������������������������������������������������������������� 56,617 81,498 -30.5 27,648 38,786 -28

Net interest income �������������������������������������������������������������� 216,474 198,409 9.1 107,534 99,047 8

Provision for loan and lease losses �������������������������������������������� 91,145 128,197 -28.9 40,303 67,370 -40

Total noninterest income������������������������������������������������������������� 122,275 136,630 -10.5 60,865 68,419 -11

Total noninterest expense ����������������������������������������������������������� 192,790 196,686 -2.0 97,930 99,449 -1

Securities gains (losses)������������������������������������������������������������� 3,737 839 345.7 2,148 -927 N/

Applicable income taxes ������������������������������������������������������������� 17,928 4,900 265.9 10,307 315 N/

Extraordinary gains, net�������������������������������������������������������������� -174 -3,655 N/M -232 -3,624 N/M

Total net income (includes minority interests)��������������������� 40,449 2,440 N/M 21,775 -4,221 N/M

 Bank net income������������������������������������������������������������ 40,080 2,022 N/M 21,597 -4,376 N/M

Net charge-offs���������������������������������������������������������������������������� 100,747 86,723 16.2 48,959 49,173 -0

Cash dividends ���������������������������������������������������������������������������� 17,317 13,374 29.5 12,934 6,139 110

Retained earnings ����������������������������������������������������������������������� 22,763 -11,352 N/M 8,662 -10,515 N/M

Net operating income����������������������������������������������������������� 37,904 5,682 567.1 20,487 -161 N/

*** Call Report filers only. N/M - Not Meaningf
FDIC Quarterly 6 2010, Volume 4, No. 3

TABLE III-A. Second Quarter 2010, All FDIC-Insured Institutions

Asset Concentration Groups*

Second

(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����������������������� 7,830 20 4 1,579 4,265 745 83 293 779 62

Commercial banks������������������������������������� 6,676 16 4 1,575 3,809 195 67 263 698 49

Savings institutions ����������������������������������� 1,154 4 0 4 456 550 16 30 81 13

Total assets (in billions)������������������������������������ $13,220.6 $718.5 $3,059.4 $189.0 $4,358.4 $794.9 $96.8 $38.1 $124.

Commercial banks������������������������������������� 11,969.0 694.4 3,059.4 188.5 3,894.1 203.4 51.1 33.2 102

Savings institutions ����������������������������������� 1,251.5 24.1 0.0 0.5 464.3 591.5 45.8 4.8

Total deposits (in billions)��������������������������������� 9,141.0 272.4 1,980.5 155.0 3,323.2 530.1 80.6 28.6 102

Commercial banks������������������������������������� 8,242.6 257.9 1,980.5 154.6 3,002.5 99.0 40.1 25.2 85

Savings institutions ����������������������������������� 898.3 14.4 0.0 0.4 320.6 431.2 40.5 3.5

Bank net income (in millions) ��������������������������� 21,597 2,582 7,737 489 2,271 1,287 304 145 145 6,638

Commercial banks������������������������������������� 19,706 2,277 7,737 488 1,762 547 171 91 241 6,392

Savings institutions ����������������������������������� 1,891 305 0 1 508 740 133 54 -96 246

Performance Ratios (annualized, %

Yield on earning assets������������������������������������ 4.72 12.58 3.45 5.30 4.91 4.53 5.77 3.85

Cost of funding earning assets ������������������������ 0.97 1.40 0.73 1.35 1.15 1.44 1.27 1.03

Net interest margin������������������������������������ 3.76 11.19 2.72 3.95 3.76 3.09 4.50 2.82

Noninterest income to assets��������������������������� 1.84 2.90 2.23 0.66 1.37 1.04 1.98 6.82

Noninterest expense to assets������������������������� 2.95 4.14 2.81 2.65 3.08 2.10 2.68 7.22

Loan and lease loss provision to assets���������� 1.22 6.37 0.44 0.47 1.32 0.69 1.55 0.17

Net operating income to assets ����������������������� 0.62 1.30 0.92 1.01 0.16 0.71 1.27 1.45

Pretax return on assets ������������������������������������ 0.96 2.22 1.39 1.20 0.37 1.08 2.00 2.05

Return on assets����������������������������������������������� 0.65 1.41 1.00 1.04 0.21 0.65 1.27 1.53

Return on equity ����������������������������������������������� 5.86 8.74 11.05 9.23 1.91 6.56 11.98 8.48

Net charge-offs to loans and leases���������������� 2.64 11.60 1.81 0.65 1.96 1.13 2.20 0.61

Loan and lease loss provision to 

net charge-offs ������������������������������������������ 82.32 64.87 68.46 114.10 99.52 102.77 93.43 107.20 11

Efficiency ratio �������������������������������������������������� 56.47 30.83 61.34 61.25 63.59 53.05 42.51 76.70 7

% of unprofitable institutions���������������������������� 20.22 15.00 0.00 8.36 28.32 14.50 7.23 13.65 

% of institutions with earnings gains���������������� 65.53 85.00 100.00 67.19 64.97 70.34 73.49 53.58 6

Structural Changes

New charters ��������������������������������������������� 0 0 0 0 0 0 0 0 0 0

Institutions absorbed by mergers ������������� 57 0 0 8 46 0 0 0 1 2

Failed institutions �������������������������������������� 45 0 0 1 42 0 0 0 1 1

PRIOR Secon

(The way it was...)

Return on assets (%)������������������������������� 2009 -0.13 -0.73 -0.54 0.78 -0.20 0.56 0.64 1.28

������������������������������������� 2007 1.22 3.34 0.99 1.26 1.18 0.91 3.04 2.31

������������������������������������� 2005 1.28 3.18 0.71 1.35 1.35 1.22 1.40 1.60

Net charge-offs to loans & leases (%) ���� 2009 2.56 10.78 3.07 0.61 2.07 1.27 2.80 0.71

������������������������������������� 2007 0.49 3.89 0.60 0.15 0.28 0.25 1.85 0.25

������������������������������������� 2005 0.42 4.18 0.66 0.15 0.21 0.09 1.11 0.40

* See Table IV-A (page 8) for explanations
FDIC Quarterly 7 2010, Volume 4, No. 3

Quarterly Banking Profile

TABLE III-A. Second Quarter 2010, All FDIC-Insured Institutions

Asset Size Distribution Geographic Regions

Second

(The way it is...)

All Insured 

Institutions

Less than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting����������������������������� 7,830 2,745 4,425 555 105 969 1,064 1,619 1,852 1,643 683

Commercial banks������������������������������������������� 6,676 2,434 3,737 421 84 506 939 1,332 1,754 1,524 621

Savings institutions ����������������������������������������� 1,154 311 688 134 21 463 125 287 98 119 62

Total assets (in billions)������������������������������������������ $13,220.6 $154.6 $1,325.1 $1,428.5 $10,312.3 $2,692.6 $2,987.3 $2,866.0 $1,656.3 $787

Commercial banks������������������������������������������� 11,969.0 137.5 1,083.5 1,086.8 9,661.2 2,017.0 2,864.2 2,738.1 1,607.8 69

Savings institutions ����������������������������������������� 1,251.5 17.1 241.6 341.7 651.1 675.6 123.2 127.9 48.5

Total deposits (in billions)��������������������������������������� 9,141.0 129.2 1,089.2 1,083.1 6,839.4 1,743.4 2,099.3 1,951.8 1,207.3 61

Commercial banks������������������������������������������� 8,242.6 115.8 899.8 823.6 6,403.5 1,271.1 2,008.4 1,856.5 1,170.4 54

Savings institutions ����������������������������������������� 898.3 13.5 189.5 259.5 435.9 472.4 90.9 95.3 36.9

Bank net income (in millions) ��������������������������������� 21,597 217 948 506 19,926 5,000 1,649 5,538 3,029 1,419 4,962

Commercial banks������������������������������������������� 19,706 170 877 234 18,424 4,069 1,683 5,557 3,013 1,155 4,228

Savings institutions ����������������������������������������� 1,891 47 70 272 1,502 932 -34 -20 15 264 734

Performance Ratios (annualized, %

Yield on earning assets������������������������������������������ 4.72 5.26 5.21 4.95 4.61 5.38 4.38 3.86 5.8

Cost of funding earning assets ������������������������������ 0.97 1.34 1.43 1.29 0.85 1.13 0.92 0.82 0.8

Net interest margin������������������������������������������ 3.76 3.93 3.79 3.66 3.77 4.25 3.46 3.04 4.9

Noninterest income to assets��������������������������������� 1.84 1.38 0.94 1.19 2.05 1.71 1.58 2.08 2.1

Noninterest expense to assets������������������������������� 2.95 3.78 3.21 2.93 2.91 2.79 2.83 3.01 3.5

Loan and lease loss provision to assets���������������� 1.22 0.49 0.83 1.24 1.27 1.53 1.32 0.75 1.8

Net operating income to assets ����������������������������� 0.62 0.52 0.24 0.14 0.73 0.73 0.19 0.66 0.7

Pretax return on assets ������������������������������������������ 0.96 0.73 0.42 0.33 1.12 1.10 0.38 1.10 1.0

Return on assets����������������������������������������������������� 0.65 0.56 0.29 0.14 0.77 0.75 0.22 0.76 0.7

Return on equity ����������������������������������������������������� 5.86 4.64 2.82 1.29 6.85 5.83 1.95 8.57 6.3

Net charge-offs to loans and leases���������������������� 2.64 0.69 1.12 1.91 3.03 4.09 2.55 1.90 2.9

Loan and lease loss provision to net charge-offs�� 82.32 115.56 110.74 100.47 78.62 66.46 92.10 80.96 92.73 1

Efficiency ratio �������������������������������������������������������� 56.47 76.04 71.46 63.10 53.81 49.75 60.91 62.84 51.79 

% of unprofitable institutions���������������������������������� 20.22 20.62 19.59 23.96 16.19 15.58 39.57 17.67 15.12 

% of institutions with earnings gains���������������������� 65.53 62.11 67.10 67.93 76.19 75.13 61.65 63.62 66.09 

Structural Changes

New charters ��������������������������������������������������� 0 0 0 0 0 0 0 0 0 0 0

Institutions absorbed by mergers ������������������� 57 16 31 10 0 3 30 5 13 5 1

Failed institutions �������������������������������������������� 45 9 26 9 1 4 11 12 6 2 10

PRIOR Secon

(The way it was...)

Return on assets (%)������������������������������������� 2009 -0.13 0.04 -0.17 -0.83 -0.03 -0.56 -0.05 0.18 0.74

��������������������������������������������2007 1.22 0.85 1.14 1.11 1.25 1.05 1.25 1.05 1.5

��������������������������������������������2005 1.28 1.09 1.24 1.35 1.28 1.29 1.34 0.93 1.5

Net charge-offs to loans & leases (%) ���������� 2009 2.56 0.91 1.14 2.23 2.89 2.91 2.26 2.40 2.5

��������������������������������������������2007 0.49 0.14 0.18 0.33 0.57 0.84 0.26 0.37 0.6

��������������������������������������������2005 0.42 0.19 0.19 0.24 0.51 0.69 0.18 0.26 0.5

* See Table IV-A (page 9) for explanations
FDIC Quarterly 8 2010, Volume 4, No. 3

TABLE IV-A. First Half 2010, All FDIC-Insured Institutions

Asset Concentration Groups*

Firs

(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����������������������������������������� 7,830 20 4 1,579 4,265 745 83 293 779 62

Commercial banks������������������������������������������������������� 6,676 16 4 1,575 3,809 195 67 263 698 49

Savings institutions ����������������������������������������������������� 1,154 4 0 4 456 550 16 30 81 13

Total assets (in billions)������������������������������������������������������ $13,220.6 $718.5 $3,059.4 $189.0 $4,358.4 $794.9 $96.8 $38.1 $124.

Commercial banks������������������������������������������������������� 11,969.0 694.4 3,059.4 188.5 3,894.1 203.4 51.1 33.2 102

Savings institutions ����������������������������������������������������� 1,251.5 24.1 0.0 0.5 464.3 591.5 45.8 4.8

Total deposits (in billions)��������������������������������������������������� 9,141.0 272.4 1,980.5 155.0 3,323.2 530.1 80.6 28.6 102

Commercial banks������������������������������������������������������� 8,242.6 257.9 1,980.5 154.6 3,002.5 99.0 40.1 25.2 85

Savings institutions ����������������������������������������������������� 898.3 14.4 0.0 0.4 320.6 431.2 40.5 3.5

Bank net income (in millions) ��������������������������������������������� 40,080 3,647 13,579 945 4,765 2,851 648 269 397 12,979

Commercial banks������������������������������������������������������� 36,038 3,128 13,579 943 3,816 1,398 418 164 473 12,119

Savings institutions ����������������������������������������������������� 4,042 520 0 1 949 1,453 230 105 -76 859

Performance Ratios (annualized, %

Yield on earning assets������������������������������������������������������ 4.81 14.65 3.52 5.28 4.91 4.55 5.89 3.87

Cost of funding earning assets ������������������������������������������ 1.00 1.65 0.73 1.37 1.18 1.47 1.33 1.05

Net interest margin������������������������������������������������������ 3.81 12.99 2.79 3.91 3.73 3.08 4.56 2.82

Noninterest income to assets��������������������������������������������� 1.85 3.07 2.22 0.63 1.35 0.97 1.97 6.94

Noninterest expense to assets������������������������������������������� 2.92 4.49 2.84 2.64 3.01 1.96 2.68 7.40

Loan and lease loss provision to assets���������������������������� 1.38 7.97 0.65 0.44 1.35 0.72 1.45 0.19

Net operating income to assets ����������������������������������������� 0.57 1.03 0.80 0.98 0.18 0.74 1.38 1.39

Pretax return on assets ������������������������������������������������������ 0.88 1.72 1.19 1.16 0.35 1.14 2.17 1.94

Return on assets����������������������������������������������������������������� 0.61 1.11 0.87 1.01 0.22 0.72 1.38 1.43

Return on equity ����������������������������������������������������������������� 5.48 6.02 9.79 9.03 2.03 7.41 13.00 7.91

Net charge-offs to loans and leases���������������������������������� 2.74 13.44 2.16 0.53 1.89 1.16 2.39 0.56

Loan and lease loss provision to net charge-offs�������������� 90.47 73.72 85.72 128.21 104.77 104.29 78.94 127.94 125

Efficiency ratio �������������������������������������������������������������������� 55.37 29.79 61.31 62.17 63.06 50.79 42.14 77.52 7

% of unprofitable institutions���������������������������������������������� 20.32 10.00 0.00 7.92 28.82 14.77 6.02 14.68

% of institutions with earnings gains���������������������������������� 61.07 90.00 100.00 61.18 61.17 66.31 75.90 49.49 5

Condition Ratios (%

Earning assets to total assets �������������������������������������������� 86.15 86.18 83.97 91.76 88.31 93.23 94.43 89.24 9

Loss Allowance to:

Loans and leases �������������������������������������������������������� 3.40 9.87 4.04 1.55 2.60 1.51 2.85 1.79

Noncurrent loans and leases �������������������������������������� 65.13 377.17 59.77 78.84 55.95 33.05 227.76 82.92 6

Noncurrent assets plus

other real estate owned to assets������������������������������� 3.31 2.18 2.61 1.70 3.90 3.03 1.04 0.79

Equity capital ratio�������������������������������������������������������������� 11.25 16.62 9.27 11.33 11.01 10.02 10.65 18.34 1

Core capital (leverage) ratio����������������������������������������������� 8.77 11.53 7.24 10.13 9.09 9.25 10.37 16.11 

Tier 1 risk-based capital ratio��������������������������������������������� 12.44 13.36 12.22 14.10 11.78 19.00 14.12 35.95 1

Total risk-based capital ratio ���������������������������������������������� 15.09 16.39 15.34 15.24 14.01 20.05 15.87 36.86 1

Net loans and leases to deposits��������������������������������������� 78.15 198.47 52.82 77.61 86.75 87.40 87.49 34.25 6

Net loans to total assets����������������������������������������������������� 54.04 75.24 34.19 63.64 66.14 58.29 72.82 25.77 5

Domestic deposits to total assets �������������������������������������� 58.00 33.66 31.95 82.00 74.74 66.61 82.19 74.83 8

Structural Changes

New charters ��������������������������������������������������������������� 3 0 0 0 2 0 0 0 0 1

Institutions absorbed by mergers ������������������������������� 94 0 0 12 74 0 0 0 2 6

Failed institutions �������������������������������������������������������� 86 0 0 2 79 2 0 1 1 1

PRIOR f

(The way it was...)

Number of Institutions ������������������������������������������������2009 8,195 24 5 1,551 4,637 808 80 294 743 53

��������������������������������������������������������2007 8,614 26 4 1,645 4,731 805 118 377 851 57

��������������������������������������������������������2005 8,868 29 6 1,731 4,545 953 118 422 1,005 59

Total assets (in billions)����������������������������������������������2009 $13,300.0 $484.8 $3,204.0 $170.1 $5,947.0 $933.4 $84.0 $36.0 $101.

��������������������������������������������������������2007 12,261.4 395.0 2,544.3 155.6 4,789.0 1,551.0 117.7 42.4 113

��������������������������������������������������������2005 10,474.4 372.3 1,927.3 139.0 3,648.1 1,642.0 146.2 49.9 127

Return on assets (%)��������������������������������������������������2009 0.03 -1.04 0.05 0.88 -0.18 0.57 0.28 0.73

��������������������������������������������������������2007 1.21 3.58 0.96 1.22 1.15 0.91 2.54 2.23

��������������������������������������������������������2005 1.31 3.18 0.81 1.31 1.34 1.21 1.35 1.58

Net charge-offs to loans & leases (%) �����������������������2009 2.25 9.57 2.73 0.47 1.76 1.13 2.71 0.81

��������������������������������������������������������2007 0.47 3.84 0.58 0.15 0.25 0.24 1.86 0.23

��������������������������������������������������������2005 0.44 4.26 0.70 0.13 0.21 0.09 1.16 0.31

Noncurrent assets plus 

OREO to assets (%) ��������������������������������������������2009 2.77 2.45 2.25 1.45 3.36 2.96 1.14 0.72

��������������������������������������������������������2007 0.62 1.28 0.41 0.81 0.70 0.81 0.63 0.23

��������������������������������������������������������2005 0.48 1.17 0.53 0.68 0.48 0.41 0.44 0.26

Equity capital ratio (%)������������������������������������������������2009 10.55 24.51 8.42 11.08 10.54 9.47 9.95 16.59 1

��������������������������������������������������������2007 10.43 23.96 7.64 11.13 10.68 10.22 13.73 20.98 1

��������������������������������������������������������2005 10.38 21.70 8.46 10.96 10.09 10.89 12.08 18.40 

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

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

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

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

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

exceed 25 percent of total assets

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

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

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

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

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

activity with no identified asset concentrations
FDIC Quarterly 9 2010, Volume 4, No. 3

Quarterly Banking Profile

TABLE IV-A. First Half 2010, All FDIC-Insured Institutions

Asset Size Distribution Geographic Regions

Firs

(The way it is...)

All Insured 

Institutions

Less than 

$100 Million

$100 Million 

to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Number of institutions reporting��������������������� 7,830 2,745 4,425 555 105 969 1,064 1,619 1,852 1,643 683

Commercial banks����������������������������������� 6,676 2,434 3,737 421 84 506 939 1,332 1,754 1,524 621

Savings institutions ��������������������������������� 1,154 311 688 134 21 463 125 287 98 119 62

Total assets (in billions)���������������������������������� $13,220.6 $154.6 $1,325.1 $1,428.5 $10,312.3 $2,692.6 $2,987.3 $2,866.0 $1,656.3 $787

Commercial banks����������������������������������� 11,969.0 137.5 1,083.5 1,086.8 9,661.2 2,017.0 2,864.2 2,738.1 1,607.8 69

Savings institutions ��������������������������������� 1,251.5 17.1 241.6 341.7 651.1 675.6 123.2 127.9 48.5

Total deposits (in billions)������������������������������� 9,141.0 129.2 1,089.2 1,083.1 6,839.4 1,743.4 2,099.3 1,951.8 1,207.3 61

Commercial banks����������������������������������� 8,242.6 115.8 899.8 823.6 6,403.5 1,271.1 2,008.4 1,856.5 1,170.4 54

Savings institutions ��������������������������������� 898.3 13.5 189.5 259.5 435.9 472.4 90.9 95.3 36.9

Bank net income (in millions) ������������������������� 40,080 429 2,398 1,657 35,596 8,892 4,063 9,336 5,760 2,873 9,155

Commercial banks����������������������������������� 36,038 342 2,108 876 32,711 7,056 4,013 9,402 5,646 2,436 7,484

Savings institutions ��������������������������������� 4,042 87 290 781 2,884 1,836 50 -66 114 437 1,671

Performance Ratios (annualized, %

Yield on earning assets���������������������������������� 4.81 5.27 5.23 4.98 4.72 5.55 4.47 3.91 5.9

Cost of funding earning assets ���������������������� 1.00 1.37 1.47 1.33 0.88 1.19 0.95 0.84 0.8

Net interest margin���������������������������������� 3.81 3.89 3.76 3.64 3.84 4.37 3.52 3.07 5.0

Noninterest income to assets������������������������� 1.85 1.39 0.91 1.22 2.07 1.72 1.70 2.06 2.2

Noninterest expense to assets����������������������� 2.92 3.79 3.15 2.87 2.89 2.81 2.78 3.03 3.4

Loan and lease loss provision to assets�������� 1.38 0.47 0.76 1.23 1.50 1.71 1.48 0.94 2.1

Net operating income to assets ��������������������� 0.57 0.52 0.31 0.21 0.66 0.66 0.25 0.55 0.7

Pretax return on assets ���������������������������������� 0.88 0.72 0.49 0.44 0.99 1.00 0.42 0.88 1.0

Return on assets��������������������������������������������� 0.61 0.56 0.36 0.23 0.69 0.67 0.27 0.64 0.6

Return on equity ��������������������������������������������� 5.48 4.62 3.60 2.14 6.16 5.20 2.42 7.28 6.0

Net charge-offs to loans and leases�������������� 2.74 0.65 0.98 1.76 3.23 4.10 2.63 2.11 3.1

Loan and lease loss provision to net 

charge-offs ���������������������������������������������� 90.47 118.93 115.31 107.69 87.56 75.20 98.78 90.88 98.31 1

Efficiency ratio ������������������������������������������������ 55.37 76.51 71.58 61.76 52.63 49.18 58.31 63.21 50.09 

% of unprofitable institutions�������������������������� 20.32 20.95 19.73 22.52 17.14 15.38 40.60 17.36 13.77 

% of institutions with earnings gains�������������� 61.07 58.11 62.01 66.31 71.43 73.27 57.52 57.88 60.53 

Condition Ratios (%

Earning assets to total assets ����������������������� 86.15 91.10 91.40 90.36 84.82 86.12 83.92 86.22 87.01 

Loss Allowance to:

Loans and leases ����������������������������������� 3.40 1.64 1.82 2.32 3.86 3.77 3.27 3.29 3.7

Noncurrent loans and leases ����������������� 65.13 61.60 50.66 51.75 68.42 102.33 51.82 57.87 63.36 

Noncurrent assets plus

other real estate owned to assets���������� 3.31 2.37 3.38 3.62 3.28 2.22 4.04 3.17 4.6

Equity capital ratio����������������������������������������� 11.25 12.20 10.23 11.08 11.39 12.95 11.44 9.15 11.55 

Core capital (leverage) ratio�������������������������� 8.77 11.56 9.60 9.60 8.50 9.73 8.00 7.28 9.12

Tier 1 risk-based capital ratio������������������������ 12.44 17.78 13.73 13.91 12.00 13.88 11.21 10.97 11.19 

Total risk-based capital ratio ������������������������� 15.09 18.89 14.95 15.30 15.02 16.23 14.40 14.30 13.81 

Net loans and leases to deposits������������������ 78.15 72.58 79.87 82.94 77.23 83.01 77.20 70.12 90.62 

Net loans to total assets�������������������������������� 54.04 60.65 65.65 62.89 51.22 53.75 54.25 47.76 66.05 

Domestic deposits to total assets ����������������� 58.00 83.56 82.15 75.27 52.12 57.43 62.57 53.85 66.98 

Structural Changes

New charters ������������������������������������������ 3 0 1 2 0 0 2 0 0 1 0

Institutions absorbed by mergers ���������� 94 33 48 12 1 7 34 9 22 11 11

Failed institutions ����������������������������������� 86 20 49 16 1 7 25 16 11 5 22

PRIOR f

(The way it was...)

Number of Institutions ��������������������������� 2009 8,195 3,013 4,484 582 116 996 1,164 1,685 1,914 1,680 756

����������������������������������� 2007 8,614 3,582 4,371 538 123 1,070 1,216 1,806 2,000 1,750 772

����������������������������������� 2005 8,868 3,996 4,266 492 114 1,109 1,214 1,897 2,079 1,812 757

Total assets (in billions)������������������������� 2009 $13,300.0 $165.4 $1,347.9 $1,500.8 $10,286.0 $2,458.2 $3,493.7 $3,124.6 $1,063.0 $777

����������������������������������� 2007 12,261.4 189.8 1,295.4 1,410.7 9,365.4 2,261.8 3,004.5 2,830.9 910.0 67

����������������������������������� 2005 10,474.4 207.5 1,209.8 1,351.2 7,705.9 2,729.8 2,579.4 2,426.9 765.4 57

Return on assets (%)����������������������������� 2009 0.03 0.15 0.06 -0.50 0.10 -0.24 0.12 0.15 0.65 

����������������������������������� 2007 1.21 0.85 1.11 1.13 1.24 1.09 1.23 1.06 1.6

����������������������������������� 2005 1.31 1.07 1.23 1.34 1.32 1.28 1.40 0.97 1.6

Net charge-offs to loans & leases (%) �� 2009 2.25 0.76 0.95 1.81 2.57 2.56 1.97 2.01 2.3

����������������������������������� 2007 0.47 0.14 0.16 0.29 0.56 0.82 0.24 0.34 0.6

����������������������������������� 2005 0.44 0.15 0.18 0.24 0.54 0.72 0.19 0.29 0.5

Noncurrent assets plus 

OREO to assets (%) ����������������������� 2009 2.77 2.04 2.94 3.44 2.67 1.81 3.08 2.87 3.1

����������������������������������� 2007 0.62 0.81 0.75 0.67 0.59 0.60 0.42 0.63 1.1

����������������������������������� 2005 0.48 0.72 0.54 0.44 0.47 0.49 0.31 0.55 0.7

Equity capital ratio (%)��������������������������� 2009 10.55 12.44 9.92 10.60 10.60 12.52 10.97 8.55 10.79

����������������������������������� 2007 10.43 13.42 10.48 11.28 10.24 12.48 9.83 9.01 10.00 

����������������������������������� 2005 10.38 12.16 10.29 10.86 10.26 10.70 10.00 9.30 10.83

* Regions

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

U.S. Virgin Islan

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

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

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

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

San Francisco - Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Pacific Islands, Utah, Washington, Wyoming
FDIC Quarterly 10 2010, Volume 4, No. 3

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

Asset Concentration Groups*

June 30, 2010 All Insured 

Institutions

Credit 

Card 

Banks

International 

Banks

Agricultural 

Banks

Commercial 

Lenders

Mortgage 

Lenders

Consumer 

Lenders

Other 

Specialized 

<$1 Billion

All Other 

<$1 

Billion

All Other 

>$1 

Billion

Percent of Loans 30-89 Days Past Due

All loans secured by real estate ��������������������������������������� 1.96 1.25 2.78 1.13 1.59 1.89 1.07 1.34

Construction and development��������������������������������� 2.36 0.00 2.48 1.88 2.31 5.90 0.46 0.77

Nonfarm nonresidential��������������������������������������������� 1.14 0.00 0.62 1.00 1.19 1.49 1.84 0.90

Multifamily residential real estate ����������������������������� 1.06 0.00 0.56 1.34 1.27 1.68 3.87 1.16

Home equity loans����������������������������������������������������� 1.16 1.95 1.53 0.62 0.85 1.18 0.94 0.49

Other 1-4 family residential��������������������������������������� 2.79 1.18 4.28 1.67 2.13 1.89 1.14 1.86

Commercial and industrial loans ������������������������������������� 0.80 2.60 0.43 1.36 0.96 1.03 1.29 1.01

Loans to individuals���������������������������������������������������������� 2.06 2.22 2.07 1.82 1.74 1.51 1.70 1.93

Credit card loans ������������������������������������������������������� 2.19 2.18 2.62 1.48 1.70 3.16 1.11 2.50

Other loans to individuals ����������������������������������������� 1.91 3.02 1.86 1.83 1.75 1.06 1.98 1.86

All other loans and leases (including farm) ��������������������� 0.51 0.08 0.35 0.78 0.54 0.76 0.32 0.76

Total loans and leases������������������������������������������������������ 1.69 2.23 1.86 1.11 1.43 1.85 1.51 1.34

Percent of Loans Noncurrent**

All real estate loans ���������������������������������������������������������� 7.32 4.89 10.63 2.38 5.81 4.81 1.15 2.66

Construction and development.................................. 16.87 0.00 

Nonfarm nonresidential��������������������������������������������� 4.28 0.00 5.64 2.87 4.01 3.67 2.56 2.37

Multifamily residential real estate ����������������������������� 4.16 0.00 4.17 2.88 4.38 3.20 1.74 3.60

Home equity loans����������������������������������������������������� 1.71 2.28 1.93 0.80 1.18 1.79 0.82 0.90

Other 1-4 family residential��������������������������������������� 9.75 6.11 17.67 1.61 5.41 4.93 1.14 2.33 

Commercial and industrial loans ������������������������������������� 2.91 2.95 5.25 2.34 2.51 3.02 0.72 1.38

Loans to individuals���������������������������������������������������������� 1.95 2.61 2.06 0.75 1.43 1.07 1.32 0.95

Credit card loans ������������������������������������������������������� 2.58 2.57 2.61 0.75 2.87 3.16 1.14 1.21

Other loans to individuals ����������������������������������������� 1.28 3.32 1.86 0.75 1.12 0.50 1.40 0.92

All other loans and leases (including farm) ��������������������� 1.49 0.17 2.03 0.96 1.33 0.42 1.15 0.85

Total loans and leases������������������������������������������������������ 5.21 2.62 6.75 1.97 4.65 4.57 1.24 2.15

Percent of Loans Charged-off (net, YTD)

All real estate loans ���������������������������������������������������������� 1.97 4.91 2.42 0.48 1.91 1.04 1.66 0.47

Construction and development��������������������������������� 5.14 0.00 2.78 2.96 5.54 6.21 1.68 0.80

Nonfarm nonresidential��������������������������������������������� 1.12 0.00 1.10 0.50 1.16 0.69 0.51 0.35

Multifamily residential real estate ����������������������������� 1.20 0.00 0.98 0.83 1.37 0.91 1.70 1.63

Home equity loans����������������������������������������������������� 2.89 9.02 2.80 0.68 1.42 3.72 2.25 0.22

Other 1-4 family residential��������������������������������������� 1.65 4.24 2.99 0.34 1.45 0.75 1.08 0.47

Commercial and industrial loans ������������������������������������� 1.90 17.20 1.46 1.31 1.72 1.53 5.57 0.56

Loans to individuals���������������������������������������������������������� 7.01 13.72 3.32 0.55 2.56 3.42 2.36 1.09

Credit card loans ������������������������������������������������������� 12.15 13.73 6.27 2.35 8.12 10.53 5.06 5.17

Other loans to individuals ����������������������������������������� 2.18 13.62 2.24 0.50 1.39 1.30 1.18 0.60

All other loans and leases (including farm) ��������������������� 0.74 0.01 0.68 0.00 1.20 0.55 3.05 0.35

Total loans and leases������������������������������������������������������ 2.74 13.44 2.16 0.53 1.89 1.16 2.37 0.56

Loans Outstanding (in billions)

All real estate loans ���������������������������������������������������������� $4,336.8 $0.1 $526.1 $72.1 $2,041.9 $434.8 $18.0 $6.7 $50.

Construction and development��������������������������������� 383.3 0.0 8.5 4.5 273.9 8.4 0.4 0.

Nonfarm nonresidential��������������������������������������������� 1,081.0 0.0 31.3 20.7 783.7 27.4 0.9 2.2 

Multifamily residential real estate ����������������������������� 214.7 0.0 40.9 1.6 128.6 9.0 0.1 0.

Home equity loans����������������������������������������������������� 654.5 0.0 131.4 1.5 220.7 26.6 9.1 0.2

Other 1-4 family residential��������������������������������������� 1,874.3 0.1 266.3 19.2 593.6 362.4 7.5 3.2 

Commercial and industrial loans ������������������������������������� 1,174.9 32.4 191.6 15.7 553.7 11.0 3.9 1.3

Loans to individuals���������������������������������������������������������� 1,359.5 564.6 206.1 6.3 217.5 21.5 50.5 1.3

Credit card loans ������������������������������������������������������� 699.4 537.4 56.1 0.1 39.3 4.6 16.3 0.

Other loans to individuals ����������������������������������������� 660.1 27.1 150.0 6.1 178.2 16.9 34.2 1.2

All other loans and leases (including farm) ��������������������� 526.8 2.7 167.4 28.1 147.4 3.2 0.7 0.6

Total loans and leases (plus unearned income)�������������� 7,398.1 599.8 1,091.3 122.2 2,960.5 470.5 73.2 10.0 69

Memo: Other Real Estate Owned (in millions

All other real estate owned����������������������������������������������� 49,285.2 -15.5 3,967.0 787.5 31,844.5 2,459.7 41.1 72.7 505

Construction and development��������������������������������� 18,002.8 0.0 28.0 278.4 15,522.4 467.7 13.4 26.9 142

Nonfarm nonresidential��������������������������������������������� 8,980.2 0.0 157.0 236.1 7,191.2 208.2 8.8 24.4 137

Multifamily residential real estate ����������������������������� 2,790.3 0.0 852.0 39.7 1,252.3 46.1 0.1 1.2 

1-4 family residential ������������������������������������������������� 13,722.1 0.1 1,219.0 172.4 6,749.3 1,540.7 18.5 19.4 189

Farmland�������������������������������������������������������������������� 317.6 0.0 0.0 60.7 233.4 8.8 0.3 0.

GNMA properties������������������������������������������������������� 5,280.5 0.0 1,514.0 0.3 882.2 191.8 0.0 0.0 0

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status
FDIC Quarterly 11 2010, Volume 4, No. 3

Quarterly Banking Profile

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

Asset Size Distribution Geographic Regions

June 30, 2010 All Insured 

Institutions

Less than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to 

$10 Billion

Greater 

than 

$10 Billion New York Atlanta Chicago

Kansas 

City Dallas

San 

Francisco

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ������������������������������ 1.96 1.69 1.46 1.29 2.25 1.54 2.14 1.94 2.3

Construction and development������������������������ 2.36 2.15 2.13 1.98 2.62 2.89 1.92 2.39 2.9

Nonfarm nonresidential������������������������������������ 1.14 1.46 1.25 1.05 1.12 1.21 1.24 1.28 1.0

Multifamily residential real estate �������������������� 1.06 1.13 1.29 1.01 1.02 0.85 1.54 1.21 0.9

Home equity loans�������������������������������������������� 1.16 0.88 0.84 0.83 1.22 0.68 1.38 1.23 1.1

Other 1-4 family residential������������������������������ 2.79 2.11 1.67 1.48 3.22 1.81 3.08 2.80 3.6

Commercial and industrial loans ���������������������������� 0.80 1.73 1.27 0.92 0.72 1.24 0.62 0.78 1.0

Loans to individuals������������������������������������������������� 2.06 2.22 1.81 1.91 2.07 2.09 2.15 1.65 2.5

Credit card loans ���������������������������������������������� 2.19 2.38 2.49 2.06 2.19 2.04 2.35 1.92 2.7

Other loans to individuals �������������������������������� 1.91 2.22 1.76 1.86 1.93 2.28 2.04 1.56 2.2

All other loans and leases (including farm) ������������ 0.51 0.78 0.66 0.65 0.48 0.34 0.24 0.72 1.0

Total loans and leases��������������������������������������������� 1.69 1.63 1.41 1.26 1.81 1.59 1.78 1.59 2.0

Percent of Loans Noncurrent** 

All real estate loans ������������������������������������������������� 7.32 3.09 4.08 5.39 8.64 4.78 8.92 8.15 8.8

Construction and development������������������������ 16.87 10.28 12.85 16.42 18.82 17.93 17.60 16.27 16.92 

Nonfarm nonresidential������������������������������������ 4.28 3.35 3.28 3.96 4.98 3.76 4.77 4.58 4.5

Multifamily residential real estate �������������������� 4.16 2.80 3.50 4.56 4.21 3.12 4.88 4.56 3.5

Home equity loans�������������������������������������������� 1.71 1.39 1.22 1.35 1.78 0.94 1.93 1.61 2.3

Other 1-4 family residential������������������������������ 9.75 2.22 2.75 4.05 12.04 4.71 12.19 13.03 13.4

Commercial and industrial loans ���������������������������� 2.91 2.69 2.44 2.49 3.03 2.92 2.27 2.62 2.7

Loans to individuals������������������������������������������������� 1.95 1.02 0.80 1.07 2.04 2.38 1.48 1.27 2.2

Credit card loans ���������������������������������������������� 2.58 1.10 1.68 1.72 2.61 2.59 2.62 2.42 2.7

Other loans to individuals �������������������������������� 1.28 1.01 0.75 0.84 1.36 1.62 0.88 0.90 1.4

All other loans and leases (including farm) ������������ 1.49 1.03 1.02 1.14 1.57 0.95 0.74 1.72 1.3

Total loans and leases��������������������������������������������� 5.21 2.66 3.58 4.48 5.65 3.69 6.31 5.69 5.9

Percent of Loans Charged-off (net, YTD) 

All real estate loans ������������������������������������������������� 1.97 0.58 0.91 1.75 2.30 1.04 2.73 2.09 2.0

Construction and development������������������������ 5.14 2.68 3.18 5.91 5.65 4.28 5.61 6.11 4.2

Nonfarm nonresidential������������������������������������ 1.12 0.50 0.57 1.19 1.38 0.90 1.35 1.31 0.7

Multifamily residential real estate �������������������� 1.20 0.76 0.78 1.50 1.21 0.99 1.32 1.25 0.8

Home equity loans�������������������������������������������� 2.89 0.65 0.68 1.23 3.18 0.82 4.28 2.08 3.7

Other 1-4 family residential������������������������������ 1.65 0.36 0.60 0.91 1.97 0.72 2.16 1.98 1.7

Commercial and industrial loans ���������������������������� 1.90 1.31 1.37 1.54 2.02 3.25 1.48 1.92 1.8

Loans to individuals������������������������������������������������� 7.01 0.77 1.40 2.66 7.52 11.91 4.65 2.87 9.0

Credit card loans ���������������������������������������������� 12.15 4.41 7.45 8.16 12.28 14.17 11.09 7.95 14.9

Other loans to individuals �������������������������������� 2.18 0.71 1.00 1.01 2.40 4.92 1.63 1.38 1.8

All other loans and leases (including farm) ������������ 0.74 0.00 0.48 0.86 0.77 0.52 0.41 1.48 0.7

Total loans and leases��������������������������������������������� 2.74 0.64 0.98 1.76 3.22 4.10 2.63 2.11 3.1

Loans Outstanding (in billions) 

All real estate loans ������������������������������������������������� $4,336.8 $65.6 $694.2 $680.6 $2,896.4 $826.5 $1,068.5 $852.1 $637.0 $3

Construction and development������������������������ 383.3 5.3 83.4 86.0 208.7 51.6 122.5 62.9 55.

Nonfarm nonresidential������������������������������������ 1,081.0 19.6 267.4 269.0 525.0 219.8 244.9 194.5 151.4 

Multifamily residential real estate �������������������� 214.7 1.9 32.0 41.6 139.2 58.0 34.3 62.3 18

Home equity loans�������������������������������������������� 654.5 2.1 38.2 48.2 565.9 87.2 191.2 176.0 116.

Other 1-4 family residential������������������������������ 1,874.3 28.1 239.6 224.4 1,382.3 404.2 459.6 340.0 271.7 

Commercial and industrial loans ���������������������������� 1,174.9 12.4 111.1 136.3 915.1 179.7 274.0 251.2 172.8

Loans to individuals������������������������������������������������� 1,359.5 6.7 41.4 71.4 1,240.0 415.3 228.9 195.9 231.6

Credit card loans ���������������������������������������������� 699.4 0.1 2.4 18.7 678.2 324.7 79.3 47.6 141.

Other loans to individuals �������������������������������� 660.1 6.7 38.9 52.7 561.8 90.6 149.6 148.4 90.3

All other loans and leases (including farm) ������������ 526.8 10.6 39.8 32.2 444.2 82.8 104.1 116.1 95.8

Total loans and leases (plus unearned income)����� 7,398.1 95.4 886.5 920.6 5,495.7 1,504.3 1,675.6 1,415.4 1,137.1 51

Memo: Other Real Estate Owned (in millions)

All other real estate owned�������������������������������������� 49,285.2 1,088.7 12,872.6 10,356.2 24,967.6 4,052.3 14,702.4 9,965.5 8,583.2 5,36

Construction and development������������������������ 18,002.8 353.0 6,239.5 5,570.4 5,839.8 1,119.8 5,975.9 2,621.7 2,896.9 2,69

Nonfarm nonresidential������������������������������������ 8,980.2 330.4 3,183.1 2,185.0 3,281.7 928.2 1,973.8 2,039.5 1,560.0 1,21

Multifamily residential real estate �������������������� 2,790.3 36.9 444.9 413.3 1,895.2 258.4 437.2 421.3 530.5 

1-4 family residential ���������������������������������������� 13,722.1 342.3 2,832.8 2,028.3 8,518.8 1,499.5 4,681.7 2,794.0 2,189.3 1,18

Farmland����������������������������������������������������������� 317.6 24.6 171.4 90.4 31.2 15.8 46.8 67.5 58.

GNMA properties���������������������������������������������� 5,280.5 2.0 5.0 71.3 5,202.3 217.6 1,586.9 2,019.1 1,348.

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status
FDIC Quarterly 12 2010, Volume 4, No. 3

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

Asset Size Distribution

(dollar figures in millions;

notional amounts unless otherwise indicated)

2nd Quarter

2010

1st Quarter

2010

4th Quarter

2009

3rd Quarter 

2009

2nd Quarter 

2009

% Change 

09Q2-

10Q2

Less 

than $100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

Greater than 

$10 Billion

ALL DERIVATIVE HOLD

Number of institutions reporting derivatives����������������� 1,159 1,148 1,131 1,175 1,214 -4.5 92 697 293 7

Total assets of institutions reporting derivatives ���������� $10,671,060 $10,766,470 $10,568,242 $10,546,527 $10,593,191 0.7 $6,641 $294,434 $858,367 $9,511,61

Total deposits of institutions reporting derivatives������� 7,248,761 7,281,825 7,341,335 7,183,905 7,097,228 2.1 5,534 238,833 658,084 6,346,30

Total derivatives������������������������������������������������������������� 225,433,522 218,068,203 213,563,296 210,008,291 208,656,901 8.0 295 20,307 74,544 225,338,37

Derivative Contracts by Underlying Risk Exposur

Interest rate�������������������������������������������������������������������� 188,614,063 181,989,212 179,565,399 176,204,154 175,648,997 7.4 284 19,791 69,985 188,524,00

Foreign exchange*��������������������������������������������������������� 20,245,402 19,201,890 17,297,929 17,709,286 16,640,233 21.7 0 30 3,747 20,241,62

Equity ����������������������������������������������������������������������������� 1,615,041 1,570,950 1,685,227 2,182,431 2,041,638 -20.9 10 147 631 1,614,25

Commodity & other (excluding credit derivatives)�������� 1,082,812 941,687 978,922 926,295 909,250 19.1 0 75 135 1,082,60

Credit������������������������������������������������������������������������������ 13,876,204 14,364,464 14,035,819 12,986,125 13,416,784 3.4 0 265 46 13,875,89

Total�������������������������������������������������������������������������������� 225,433,522 218,068,203 213,563,296 210,008,291 208,656,901 8.0 295 20,307 74,544 225,338,37

Derivative Contracts by Transaction Type 

Swaps ���������������������������������������������������������������������������� 141,420,332 136,333,354 142,021,986 139,477,035 137,993,983 2.5 30 9,481 52,023 141,358,79

Futures & forwards �������������������������������������������������������� 36,793,857 34,096,685 26,495,665 24,944,757 25,885,385 42.1 105 4,744 10,496 36,778,51

Purchased options��������������������������������������������������������� 15,402,898 15,757,710 15,151,690 15,424,802 15,020,266 2.5 15 784 3,283 15,398,81

Written options��������������������������������������������������������������� 15,901,608 15,910,612 15,113,322 15,063,214 14,859,851 7.0 145 5,033 8,312 15,888,11

Total�������������������������������������������������������������������������������� 209,518,695 202,098,362 198,782,664 194,909,809 193,759,485 8.1 295 20,041 74,114 209,424,24

Fair Value of Derivative Contracts

Interest rate contracts���������������������������������������������������� 98,101 94,818 96,993 122,592 123,696 -20.7 4 -18 199 97,91

Foreign exchange contracts������������������������������������������ -4,874 1,431 9,671 -5,037 -10,568 N/M 0 0 -16 -4,858

Equity contracts������������������������������������������������������������� 305 -856 1,236 -253 670 -54.5 0 2 4 29

Commodity & other (excluding credit derivatives)�������� -574 994 1,623 3,615 1,156 N/M 0 4 2 -580

Credit derivatives as guarantor������������������������������������� -222,426 -121,491 -160,980 -234,357 -474,635 N/M 0 0 2 -222,427

Credit derivatives as beneficiary����������������������������������� 242,561 141,273 188,641 266,208 523,242 -53.6 0 -3 -3 242,56

Derivative Contracts by Maturity** 

Interest rate contracts ����������������������������� < 1 year 89,000,746 84,010,679 80,979,619 78,128,617 74,833,456 18.9 71 4,854 14,272 88,981,54

 ������������������������������������������ 1-5 years 33,347,769 33,334,968 33,638,323 33,977,575 35,928,119 -7.2 17 7,095 25,460 33,315,19

 ������������������������������������������ > 5 years 23,099,477 24,119,721 26,141,315 26,620,986 28,371,872 -18.6 19 2,324 19,410 23,077,72

Foreign exchange contracts ������������������� < 1 year 11,959,581 11,092,119 10,416,223 9,674,124 9,490,043 26.0 0 18 2,515 11,957,04

 ������������������������������������������ 1-5 years 2,356,096 2,440,019 2,448,723 2,405,751 2,293,453 2.7 0 4 74 2,356,01

 ������������������������������������������ > 5 years 1,306,940 1,328,830 1,343,778 1,325,262 1,193,852 9.5 0 0 86 1,306,85

Equity contracts��������������������������������������� < 1 year 326,742 320,739 312,066 358,462 343,416 -4.9 3 25 129 326,58

 ������������������������������������������ 1-5 years 205,283 220,441 227,854 301,995 291,182 -29.5 1 60 246 204,97

 ������������������������������������������ > 5 years 80,586 83,990 81,647 82,835 75,716 6.4 0 1 0 80,58

Commodity & other contracts ����������������� < 1 year 324,203 287,660 261,429 237,860 252,705 28.3 0 39 51 324,11

 ������������������������������������������ 1-5 years 210,319 177,250 223,654 233,829 211,329 -0.5 0 17 43 210,26

 ������������������������������������������ > 5 years 30,459 31,220 34,250 43,612 45,443 -33.0 0 0 0 30,45

Risk-Based Capital: Credit Equivalent Amount

Total current exposure to tier 1 capital (%)������������������� 44.8 41.2 45.9 57.3 66.8 0.2 0.7

Total potential future exposure to tier 1 capital (%)������ 82.9 88.9 83.3 83.6 80.6 0.1 0.1

Total exposure (credit equivalent amount) 

to tier 1 capital (%)�������������������������������������������������� 127.7 130.2 129.2 140.9 147.3 0.3 0.8 

Credit losses on derivatives***���������������������������������� 222.2 103.6 767.1 605.3 384.7 -42.2 0.0 0.0

HELD FOR TRADIN

Number of institutions reporting derivatives����������������� 188 194 197 207 204 -7.8 6 67 58 5

Total assets of institutions reporting derivatives ���������� 8,882,861 8,949,197 8,873,918 8,911,543 8,911,914 -0.3 464 28,598 237,207 8,616,59

Total deposits of institutions reporting derivatives������� 6,078,554 6,095,242 6,145,573 6,014,547 5,990,076 1.5 381 22,820 181,893 5,873,46

Derivative Contracts by Underlying Risk Exposur

Interest rate�������������������������������������������������������������������� 186,774,353 180,109,272 177,717,314 174,199,745 173,339,084 7.8 25 1,115 21,022 186,752,19

Foreign exchange���������������������������������������������������������� 18,072,001 17,462,255 16,437,639 15,510,657 15,051,809 20.1 0 1 2,273 18,069,72

Equity ����������������������������������������������������������������������������� 1,608,817 1,563,707 1,677,767 2,175,796 2,034,228 -20.9 0 1 234 1,608,58

Commodity & other�������������������������������������������������������� 1,077,566 934,851 974,849 924,183 906,325 18.9 0 0 32 1,077,53

Total�������������������������������������������������������������������������������� 207,532,737 200,070,085 196,807,569 192,810,380 191,331,447 8.5 25 1,116 23,561 207,508,03

Trading Revenues: Cash & Derivative Instruments

Interest rate�������������������������������������������������������������������� 144 304 -1,182 5,436 900 -84.0 0 0 32 11

Foreign exchange���������������������������������������������������������� 4,299 3,906 2,560 -1,535 2,132 101.6 0 0 2 4,29

Equity ����������������������������������������������������������������������������� 378 965 144 153 -92 N/M 0 0 1 377

Commodity & other (including credit derivatives) �������� 1,815 3,004 417 1,648 2,320 -21.8 0 0 0 1,81

Total trading revenues��������������������������������������������������� 6,636 8,178 1,940 5,702 5,260 26.2 0 0 35 6,60

Share of Revenue

Trading revenues to gross revenues (%) ���������������������� 5.4 6.6 1.6 4.7 4.0 0.0 0.

Trading revenues to net operating revenues (%)���������� 45.8 74.0 107.9 88.1 96.9 0.0 0.0 -

HELD FOR PURPOSES OTHER THAN TRA

Number of institutions reporting derivatives����������������� 1,047 1,032 1,010 1,048 1,086 -3.6 86 631 259 7

Total assets of institutions reporting derivatives ���������� 10,282,637 10,344,141 10,212,051 10,199,833 10,216,754 0.6 6,177 267,465 754,467 9,254,52

Total deposits of institutions reporting derivatives������� 7,015,474 7,034,900 7,098,523 6,955,097 6,847,472 2.5 5,153 217,162 576,815 6,216,34

Derivative Contracts by Underlying Risk Exposur

Interest rate�������������������������������������������������������������������� 1,839,711 1,879,940 1,848,085 2,004,409 2,309,913 -20.4 260 18,676 48,963 1,771,81

Foreign exchange���������������������������������������������������������� 134,777 134,258 115,478 86,272 107,791 25.0 0 28 1,089 133,66

Equity ����������������������������������������������������������������������������� 6,224 7,243 7,459 6,635 7,410 -16.0 10 146 397 5,67

Commodity & other�������������������������������������������������������� 5,246 6,835 4,073 2,112 2,924 79.4 0 75 103 5,06

Total notional amount ���������������������������������������������������� 1,985,957 2,028,276 1,975,095 2,099,429 2,428,038 -18.2 270 18,925 50,553 1,916,20

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

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

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

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

in total assets
FDIC Quarterly 13 2010, Volume 4, No. 3

Quarterly Banking Profile

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

Savings Banks)

Asset Size Distribution

(dollar figures in millions)

2nd 

Quarter

2010

1st 

Quarter

2010

4th 

Quarter

2009

3rd 

Quarter

2009

2nd 

Quarter 

2009

% Change 

09Q2-

10Q2

Less than 

$100 

Million

$100 

Million to 

$1 Billion

$1 Billion 

to $10 

Billion

Greater 

than $10 

Billion

Assets Securitized and Sold with Servicing Retained or with Recourse or Other Seller-Provided Credit Enhancement

Number of institutions reporting securitization activities ����������������������������������������� 129 127 142 142 139 -7.2 18 61 22 2

Outstanding Principal Balance by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� $1,180,361 $1,194,588 $1,209,474 $1,225,694 $1,222,193 -3.4 $262 $962 $2,147 $1,176,99

Home equity loans��������������������������������������������������������������������������������������������� 0 15 5,947 6,205 6,594 -100.0 0 0 0 

Credit card receivables�������������������������������������������������������������������������������������� 15,452 16,133 363,486 391,417 397,918 -96.1 0 830 0 14,62

Auto loans ���������������������������������������������������������������������������������������������������������� 486 600 7,182 8,277 10,266 -95.3 0 0 67 41

Other consumer loans ��������������������������������������������������������������������������������������� 5,021 5,610 24,692 25,335 26,006 -80.7 0 0 0 5,02

Commercial and industrial loans����������������������������������������������������������������������� 3,796 4,127 7,649 8,436 9,019 -57.9 1 7 628 3,16

All other loans, leases, and other assets* �������������������������������������������������������� 206,692 192,853 198,835 192,077 193,374 6.9 5 43 158 206,48

Total securitized and sold������������������������������������������������������������������������������������������ 1,411,808 1,413,926 1,817,266 1,857,441 1,865,371 -24.3 268 1,841 3,000 1,406,70

Maximum Credit Exposure by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 5,009 5,166 5,780 6,115 6,058 -17.3 2 9 57 4,94

Home equity loans��������������������������������������������������������������������������������������������� 0 14 1,023 1,006 1,063 -100.0 0 0 0 

Credit card receivables�������������������������������������������������������������������������������������� 664 730 134,193 136,043 129,373 -99.5 0 215 0 44

Auto loans ���������������������������������������������������������������������������������������������������������� 6 6 637 745 722 -99.2 0 0 6 

Other consumer loans ��������������������������������������������������������������������������������������� 245 237 1,410 1,434 1,399 -82.5 0 0 0 24

Commercial and industrial loans����������������������������������������������������������������������� 94 95 225 274 184 -48.9 0 0 86 

All other loans, leases, and other assets���������������������������������������������������������� 248 257 287 333 299 -17.1 0 4 0 24

Total credit exposure ������������������������������������������������������������������������������������������������� 6,266 6,506 143,555 145,950 139,100 -95.5 2 229 148 5,88

Total unused liquidity commitments provided to institution's own securitizations ��� 166 162 387 358 378 -56.1 1 0 1 16

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

1-4 family residential loans�������������������������������������������������������������������������������� 3.7 3.9 4.4 4.6 4.3 3.9 0.

Home equity loans��������������������������������������������������������������������������������������������� 0.0 0.0 1.3 1.3 0.8 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 1.5 1.5 2.7 2.9 2.6 0.0 2.

Auto loans ���������������������������������������������������������������������������������������������������������� 1.2 1.2 2.3 2.4 2.2 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 3.7 3.3 3.9 3.6 2.9 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 0.2 0.3 2.3 2.9 2.6 0.0 26.

All other loans, leases, and other assets���������������������������������������������������������� 2.6 2.2 3.5 1.2 1.9 0.0 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 3.5 3.6 4.0 3.9 3.7 3.9 1.

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

1-4 family residential loans�������������������������������������������������������������������������������� 7.8 8.5 7.9 7.5 6.6 1.9 0.

Home equity loans��������������������������������������������������������������������������������������������� 0.0 0.0 2.0 1.8 0.9 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 0.7 0.8 3.0 2.6 2.9 0.0 3.

Auto loans ���������������������������������������������������������������������������������������������������������� 0.2 0.3 0.2 0.3 0.2 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 2.7 2.7 3.6 3.6 3.3 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 0.1 0.1 1.0 1.2 1.3 0.0 0.

All other loans, leases, and other assets���������������������������������������������������������� 8.5 7.5 4.3 3.7 1.6 9.1 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 7.8 8.2 6.4 5.9 5.2 2.0 1.

Securitized Loans, Leases, and Other Assets Charged-off 

(net, YTD, annualized, %) 

1-4 family residential loans�������������������������������������������������������������������������������� 0.4 0.2 1.0 0.7 0.5 0.0 0.

Home equity loans��������������������������������������������������������������������������������������������� 0.0 0.0 1.8 1.4 0.9 0.0 0.

Credit card receivables�������������������������������������������������������������������������������������� 4.2 2.2 10.2 7.6 4.8 0.0 6.

Auto loans ���������������������������������������������������������������������������������������������������������� 0.4 0.3 2.5 1.9 1.1 0.0 0.

Other consumer loans ��������������������������������������������������������������������������������������� 0.9 0.4 1.0 0.7 0.5 0.0 0.

Commercial and industrial loans����������������������������������������������������������������������� 0.0 0.0 13.9 10.0 6.9 0.0 0.

All other loans, leases, and other assets���������������������������������������������������������� 0.0 0.1 0.1 0.0 0.0 0.0 0.

Total loans, leases, and other assets ����������������������������������������������������������������������� 0.4 0.2 2.8 2.1 1.4 0.0 2.

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

Home equity loans��������������������������������������������������������������������������������������������� 0 0 316 396 134 -100.0 0 0 0 

Credit card receivables�������������������������������������������������������������������������������������� 5,088 4,831 62,235 73,401 68,128 -92.5 0 55 0 5,03

Commercial and industrial loans����������������������������������������������������������������������� 3 4 894 930 451 -99.3 0 2 0 

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

Home equity loans��������������������������������������������������������������������������������������������� 0 0 1 2 4 -100.0 0 0 0 

Credit card receivables�������������������������������������������������������������������������������������� 0 0 789 788 594 -100.0 0 0 0 

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

Assets Sold with Recourse and Not Securitized

Number of institutions reporting asset sales������������������������������������������������������������ 833 820 826 821 827 0.7 169 507 115 4

Outstanding Principal Balance by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 62,232 62,219 66,978 68,000 70,505 -11.7 2,591 9,099 4,151 46,39

Home equity, credit card receivables, auto, and other consumer loans ��������� 41 40 908 1,024 1,159 -96.5 0 9 15 1

Commercial and industrial loans����������������������������������������������������������������������� 541 669 2,654 2,844 3,195 -83.1 1 54 25 46

All other loans, leases, and other assets���������������������������������������������������������� 52,400 48,372 48,757 47,971 47,560 10.2 1 79 301 52,01

Total sold and not securitized������������������������������������������������������������������������������������ 115,215 111,299 119,298 119,840 122,419 -5.9 2,593 9,241 4,493 98,88

Maximum Credit Exposure by Asset Type 

1-4 family residential loans�������������������������������������������������������������������������������� 14,192 13,702 16,534 15,419 15,837 -10.4 102 1,214 2,445 10,43

Home equity, credit card receivables, auto, and other consumer loans ��������� 21 21 100 104 112 -81.3 0 7 3 1

Commercial and industrial loans����������������������������������������������������������������������� 78 62 1,934 2,003 2,224 -96.5 1 40 25 1

All other loans, leases, and other assets���������������������������������������������������������� 12,748 10,450 10,412 10,136 10,011 27.3 1 51 13 12,68

Total credit exposure ������������������������������������������������������������������������������������������������� 27,039 24,234 28,980 27,662 28,184 -4.1 104 1,312 2,486 23,13

Support for Securitization Facilities Sponsored by Other Institutions 

Number of institutions reporting securitization facilities sponsored by others ������� 125 78 58 60 60 108.3 31 59 26 

Total credit exposure ������������������������������������������������������������������������������������������������� 9,254 6,427 4,297 4,872 3,812 142.8 26 201 131 8,89

Total unused liquidity commitments ������������������������������������������������������������������������� 418 846 545 327 475 -12.0 0 0 0 41

Other

Assets serviced for others**�������������������������������������������������������������������������������������� 5,956,144 5,995,522 6,010,523 5,977,515 5,878,337 1.3 4,065 80,879 93,972 5,777,22

Asset-backed commercial paper conduits 

Credit exposure to conduits sponsored by institutions and others������������������ 7,315 7,253 15,953 17,649 20,208 -63.8 5 0 84 7,22

Unused liquidity commitments to conduits sponsored by institutions 

 and others �������������������������������������������������������������������������������������������������� 78,062 80,156 170,373 182,740 210,026 -62.8 0 0 1,145 76,91

Net servicing income (for the quarter)���������������������������������������������������������������������� 3,916 4,835 8,019 5,995 10,845 -63.9 32 127 103 3,65

Net securitization income (for the quarter)��������������������������������������������������������������� 156 13 1,615 1,163 -142 -209.9 1 6 2 14

Total credit exposure to Tier 1 capital (%)***������������������������������������������������������������ 3.7 3.3 15.9 16.2 15.8 0.7 1.

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

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

*** Total credit exposure includes the sum of the three line items titled “Total credit exposure” reported above
FDIC Quarterly 14 2010, Volume 4, No. 3

Total assets of the nation’s 7,830 FDIC-insured 

commercial banks and savings institutions decreased by 

1.0 percent ($136.2 billion) during second quarter 

2010. Total deposits decreased by 0.6 percent ($57.8 

billion), foreign office deposits decreased by 2.2 percent 

($33.2 billion), and domestic office deposits decreased 

by 0.3 percent ($24.6 billion). Domestic noninterestbearing deposits increased by 1.4 percent ($20.8 

billion), savings deposits and interest bearing checking 

accounts increased by 1.0 percent ($38.0 billion), and 

domestic time deposits decreased by 3.7 percent ($83.4 

billion). For the 12 months ending June 30, total 

domestic deposits grew by 1.5 percent ($112.5 billion), 

with interest-bearing deposits increasing by 0.7 percent 

($41.3 billion) and noninterest-bearing deposits rising 

by 4.8 percent ($71.2 billion).

The share of assets funded by domestic deposits 

increased from 56.8 percent to 58.0 percent during the 

past year. In contrast, Federal Home Loan Bank 

(FHLB) advances as a share of asset funding declined 

from 4.8 percent to 3.4 percent, repurchase agreements’ 

share declined from 4.2 percent to 3.7 percent, and the 

share of foreign office deposits was flat at about 11.0 

percent. FHLB advances decreased by 29.8 percent 

($189.2 billion) during the 12 months ending June 30. 

Brokered deposits decreased by 3.4 percent ($20.5 

billion) during the second quarter and have declined by 

a total of 23.9 percent ($185.1 billion) since being 

added to the equation for pricing deposit insurance in 

second quarter 2009. At mid-year 2010, 44 percent 

(3,465) of FDIC-insured banks and thrifts used brokered 

deposits to fund a portion of their balance sheet. About 

30 percent (1,053) had brokered deposits that exceeded 

10 percent of their domestic deposits, down from 40 

percent a year earlier. Reciprocal brokered deposits were 

used by 1,597 institutions to fund $31.3 billion worth of 

assets, representing 5.3 percent of total outstanding 

brokered deposits.1

Estimated insured deposits at all FDIC-insured institutions declined by 0.6 percent during second quarter 

2010 but increased a net 12.9 percent during the past 

four quarters. For institutions existing as of March 31, 

2010, and June 30, 2010, insured deposits increased 

during the second quarter at 4,280 institutions (55 

percent), decreased at 3,515 institutions (45 percent), 

and remained unchanged at 35 institutions.

The Deposit Insurance Fund (DIF) increased by $5.5 

billion during the second quarter to -$15.2 billion (unaudited). The increased amount included $3.2 billion from 

accrued assessment income, $2.6 billion from a decrease 

in provisions for insurance losses, and $119 million from 

interest on securities and other revenue. Unrealized losses 

on available-for-sale securities combined with operating 

expenses reduced the fund by $443 million.

Forty-five insured institutions with combined assets of 

$47.3 billion failed during second quarter 2010. For 

2010 through the end of the second quarter, 86 insured 

institutions with combined assets of $69.4 billion failed, 

resulting in an estimated current cost to the DIF of 

$16.8 billion. 

The DIF’s reserve ratio was -0.28 percent on June 30, 

2010, up from -0.38 percent on March 31, 2010, and 

down from 0.22 percent one year earlier. The June 30, 

2010, figure marked a second consecutive increase; 

however, it is the third lowest reserve ratio on record, 

following the December 31, 2009, reserve ratio of -0.39 

percent and the March 31, 2010, reserve ratio of -0.38 

percent. The deposit insurance coverage limit increase 

to $250,000 has been reflected in the reserve ratio since 

third quarter 2009. 

1

 Reciprocal brokered deposits are deposits that an insured depository 

institution receives through a deposit placement network on a reciprocal basis, such that: (1) for any deposit received, the institution (as 

agent for depositors) places the same amount with other insured 

depository institutions through the network; and (2) each member of 

the network sets the interest rate to be paid on the entire amount of 

funds it places with other network members.

■ DIF Reserve Ratio Rises 10 Basis Points to -0.28 Percent

■ $250,000 Standard Insurance Coverage Becomes Permanent

■ New Law Requires FDIC to Amend Regulations to Redefine the 

Assessment Base

■ 45 Institutions Fail during Second Quarter

Insur
FDIC Quarterly 15 2010, Volume 4, No. 3

Quarterly Banking Profile

The Act eliminates the requirement that the FDIC 

dividend from the fund when the reserve ratio exceeds 

1.35 percent, but continues to require dividends when 

the reserve ratio exceeds 1.50 percent. However, the 

FDIC Board of Directors may, in its sole discretion, 

suspend or limit the declaration of payment of assessment dividends. The Act eliminates the maximum 

limitation of the reserve ratio and raises the minimum 

reserve ratio that can be designated by the FDIC Board 

of Directors from 1.15 percent of estimated insured 

deposits to not less than 1.35 percent of estimated 

insured deposits or the comparable percentage of the 

assessment base. The FDIC is also required to take steps 

necessary to attain a 1.35 percent reserve ratio by 

September 30, 2020. When setting the assessments 

necessary to meet the increased minimum target for 

the reserve ratio, the FDIC is directed to offset the effect 

on insured depository institutions with assets less than 

$10 billion. 

The new law will provide unlimited insurance for 

noninterest-bearing transaction accounts (separate from 

the standard $250,000 insurance limit) for two years 

beginning December 31, 2010. Participation will be 

mandatory for all insured depository institutions (no 

opt-outs) with no separate assessment fees for coverage. 

Only noninterest-bearing transaction accounts will be 

covered (NOW accounts and any other interest-bearing 

transaction accounts will not be covered). Beginning 

March 31, 2011, the noninterest-bearing transaction 

accounts will be included in insured deposit amounts 

used to calculate the DIF reserve ratio.

Author: Kevin Brown, Sr. Financial Analyst

Division of Insurance and Research

(202) 898-6817

Dodd-Frank Wall Street Reform and Consumer 

Protection Act

On July 21, 2010, President Barack Obama signed the 

Dodd-Frank Wall Street Reform and Consumer Protection Act, which permanently increased the standard 

maximum deposit insurance coverage to $250,000 (the 

permanent limit of $100,000 for deposits other than 

retirement accounts had been temporarily increased to 

$250,000 until December 31, 2013). The new legislation also made the coverage increase retroactive to 

January 1, 2008, making the $250,000 deposit insurance 

limit applicable to six banks that failed between January 

1, 2008, and October 3, 2008. The history of FDIC 

insurance coverage increases is as follows:

FDIC Insurance Coverage Limits

1934 – 20102

Year Standard Coverage Limit ($)

1934 2,500

1934 – 1949 5,000

1950 – 1965 10,000

1966 – 1968 15,000

1968 – 1973 20,000

1974 – 1979 40,000

1980 – 2007 100,000

2008 250,000

2

 On October 3, 2008, the Emergency Economic Stabilization Act of 2008 

temporarily increased the standard deposit insurance coverage limit to $250,000 

through December 31, 2009. On May 20, 2009, the Helping Families Save Their

Homes Act of 2009 extended the temporary coverage increase to $250,000 

through the end of 2013. On July 21, 2010, the Dodd-Frank Wall Street Reform

and Consumer Protection Act of 2010 made the standard coverage limit to 

$250,000 permanent, and made the increased coverage limit retroactive to 

January 1, 2008. Coverage for certain retirement accounts increased to

$250,000 in 2006. Initial coverage was $2,500 from January 1 to June 30, 193

The Act also directs the FDIC to amend its regulations 

to define the assessment base as average total consolidated assets minus average tangible equity during the 

assessment period, new terms which have not yet been 

defined by regulations. Following is a table that approximates how industry assets less tangible equity are stratified by institution asset size as of June 30, 2010.

Distribution of FDIC-Insured Commercial Banks and Savings Institutions3

by Asset Size ($ Billions)

Asset Size 

as of June 30, 2010

Number of 

Institutions

Percent of 

Total 

Institutions

Total Domestic 

Deposits

Percent of 

Total Domestic 

Deposits

Total Assets Less 

Total Tangible 

Equity4

Percent of 

Total Assets Less 

Tangible Equity

Greater than $100 Billion 19 0.2% 3,785 49.4% 7,243 59

$50 to $100 Billion 16 0.2% 670 8.7% 1,012 8

$10 to $50 Billion 70 0.9% 920 12.0% 1,262 10

$1 to $10 Billion 555 7.1% 1,075 14.0% 1,293 10

Less than $1 Billion 7,170 91.6% 1,218 15.9% 1,333 11

Total 7,830 100.0% 7,668 100.0% 12,143 100

3 Data was revised on 9/3/10 to remove insured foreign branch data, which was incomplete. The revised data represents FDIC-insured commercial banks and savings

institutions and does not include insured U.S. branches of foreign banks

 Data is based on quarter-end balance sheet amounts as of June 30, 2010. These calculations are provided as a rough approximation of how industry assets less tangible

equity are stratified by institution asset size; however these calculations are not the equivalent of the future deposit insurance assessment base as defined by the DoddFrank Wall Street Reform and Consumer Protection Act of 2010. The assessment base, with possible exceptions, will be based on an institution’s average consolidated total

assets during the assessment period; minus an institution’s average tangible equity during the assessment period. These terms have not yet been defined by regulatio
FDIC Quarterly 16 2010, Volume 4, No. 3

DIF Reserve Ratios

Percent of Insured Deposits

1.21 1.22 1.22 1.19

1.01

0.76

0.36

0.27 0.22

-0.16 -0.38-0.39 -0.28

6/07 12/07 6/08 12/08 6/09 12/09 6/10

Table I-B. Insurance Fund Balances and Selected Indicators

(dollar figures in millions)

Deposit Insurance Fund

2nd 

Quarter 

2010*

1st 

Quarter 

2010*

4th 

Quarter 

2009

3rd 

Quarter 

2009

2nd 

Quarter 

2009

1st 

Quarter 

2009

4th 

Quarter 

2008

3rd 

Quarter 

2008

2nd 

Quarter 

2008

1st 

Quarter 

2008

4th 

Quarter 

2007

3rd 

Quarter 

2007

2nd 

Quarter 

2007

Beginning Fund Balance ..... -$20,717 -$20,862 -$8,243 $10,368 $13,007 $17,276 $34,588 $45,217 $52,843 $52,413 $51,754 $51,227 $50,745

Changes in Fund Balance:

Assessments earned .............. 3,242 3,278 3,042 2,965 9,095 2,615 996 881 640 448 239 170 140

Interest earned on 

investment securities ...... 64 62 76 176 240 212 277 526 651 618 585 640 748

Realized Gain on Sale of

Investments ...................... 0 0 0 732 521 136 302 473 0 0 0 0 0

Operating expenses ............... 382 345 379 328 298 266 290 249 256 238 262 243 248

Provision for insurance 

losses ............................... -2,552 3,021 17,766 21,694 11,615 6,637 19,163 11,930 10,221 525 39 132 -3

All other income, 

net of expenses ............... 55 22 2,458 308 375 2 15 16 1 0 -2 24 1

Unrealized gain/(loss) on 

available-for-sale 

securities ......................... -61 149 -50 -770 -957 -331 551 -346 1,559 127 138 68 -162

Total fund balance change ..... 5,470 145 -12,619 -18,611 -2,639 -4,269 -17,312 -10,629 -7,626 430 659 527 482

Ending Fund Balance ........... -15,247 -20,717 -20,862 -8,243 10,368 13,007 17,276 34,588 45,217 52,843 52,413 51,754 51,227

Percent change from 

four quarters earlier ......... NM NM NM NM -77.07 -75.39 -67.04 -33.17 -11.73 4.13 4.48 

Reserve Ratio (%) ................. -0.28 -0.38 -0.39 -0.16 0.22 0.27 0.36 0.76 1.01 1.19

Estimated Insured 

Deposits** .............................. 5,438,866 5,473,345 5,406,174 5,315,551 4,817,617 4,831,366 4,750,638 4,545,116 4,467,587 4,437,887 4,292,211 4,242,607 4,235,044

Percent change from 

four quarters earlier ......... 12.90 13.29 13.80 16.95 7.83 8.87 10.68 7.13 5.49 4.54 3

Domestic Deposits ............... 7,685,070 7,702,418 7,705,356 7,561,308 7,561,998 7,546,999 7,505,409 7,230,328 7,036,248 7,076,719 6,921,678 6,747,998 6,698,886

Percent change from 

four quarters earlier ......... 1.63 2.06 2.66 4.58 7.47 6.65 8.43 7.15 5.04 5.58 4

Number of institutions 

reporting ......................... 7,840 7,944 8,022 8,109 8,205 8,257 8,315 8,394 8,462 8,505 8,545 8,570 8,625

Deposit Insurance Fund Balance 

and Insured Deposits

($ Millions)

DIF 

Balance

DIF-Insured 

Deposits

6/07 $51,227 $4,235,044

9/07 51,754 4,242,607

12/07 52,413 4,292,211

3/08 52,843 4,437,887

6/08 45,217 4,467,587

9/08 34,588 4,545,116

12/08 17,276 4,750,638

3/09 13,007 4,831,366

6/09 10,368 4,817,617

9/09 -8,243 5,315,551

12/09 -20,862 5,406,174

3/10 -20,717 5,473,345

6/10 -15,247 5,438,866

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

(dollar figures in millions) 2010  2009** ** 2009 2008 2007 2006 2005

Problem Institutions

Number of institutions ��������������������������������������������������������������� 829 416 702 252 76 50 52

Total assets�������������������������������������������������������������������������������� $403,203 $299,837 $402,782 $159,405 $22,189 $8,265 $6,607

Failed Institutions

Number of institutions ��������������������������������������������������������������� 86 45 140 25 3 0 0

Total assets�������������������������������������������������������������������������������� $69,396 $35,868 $169,709 $371,945 $2,615 $0 $0

Assisted Institutions***

Number of institutions ��������������������������������������������������������������� 0 8 8 5 0 0 0

Total assets�������������������������������������������������������������������������������� $0 $1,917,482 $1,917,482 $1,306,042 0 0 0

* For 2010, preliminary unaudited fund data, which are subject to change. NM - Not meaningf

** The Emergency Economic Stabilization Act of 2008 directs the FDIC not to consider the temporary coverage increase to $250,000 in setting assessments. Therefore, we do not include

the additional insured deposits in calculating the fund reserve ratio, which guides our assessment planning, from fourth quarter 2008 through the second quarter of 2009. The Helping

Families Save Their Home Act of 2009 eliminated the prohibition against the FDIC’s taking the temporary increase into account when setting assessments. Beginning in the third quarter of

2009, estimates of insured deposits include the temporary coverage increase to $250,000. The coverage increase to $250,000 became permanent on July 21, 2010, when the President

signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act

*** Assisted institutions represent five institutions under a single holding company that received assistance in 2008, and eight institutions under a different single holding company that 

received assistance in 2009

**** Through June 30
FDIC Quarterly 17 2010, Volume 4, No. 3

Quarterly Banking Profile

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

(dollar figures in millions) 

June 30, 2010

Number of 

Institutions

Total 

Assets

Domestic 

Deposits*

Est. Insured 

Deposits

Commercial Banks and Savings Institutions

FDIC-Insured Commercial Banks ����������������������������������������������� 6,676 $11,969,017 $6,769,422 $4,623,909

 FDIC-Supervised ������������������������������������������������������������������� 4,413 1,931,329 1,463,157 1,168,089

 OCC-Supervised�������������������������������������������������������������������� 1,427 8,348,856 4,304,392 2,813,128

 Federal Reserve-Supervised������������������������������������������������� 836 1,688,832 1,001,873 642,692

FDIC-Insured Savings Institutions ���������������������������������������������� 1,154 1,251,535 898,273 801,516

 OTS-Supervised Savings Institutions������������������������������������ 753 932,199 661,760 594,265

 FDIC-Supervised State Savings Banks��������������������������������� 401 319,336 236,513 207,251

Total Commercial Banks and Savings Institutions ���������������������� 7,830 13,220,551 7,667,695 5,425,425

Other FDIC-Insured Institutions

U.S. Branches of Foreign Banks ������������������������������������������������� 10 24,093 17,374 13,4

Total FDIC-Insured Institutions������������������������������������������������������ 7,840 13,244,645 7,685,070 5,438,866

* Excludes $1.47 trillion in foreign office deposits, which are uninsure

Table IV-B. Distribution of Institutions and Domestic Deposits Among Risk Categories

Quarter Ending March 31, 2010

(dollar figures in billions)

Annual 

Rate in

Basis Points*

Number of 

Institutions

Percent 

of Total 

Institutions

Domestic 

Deposits

Percent 

of Total 

Domestic 

Deposits

Risk Category 

7.00–12.00 1,717 21.61 619 

12.01–14.00 1,509 19.00 1,555 2

14.01–15.99 2,130 26.81 2,197 2

16.00–24.00 442 5.56 495 

Risk Category I

17.00–22.00 1,043 13.13 2,030 2

22.01–43.00 290 3.65 466 

Risk Category II

27.00–32.00 433 5.45 128 

32.01–58.00 180 2.27 111 

Risk Category 

40.00–45.00 121 1.52 46 

45.01–77.50 79 0.99 56 

Note: Institutions are categorized based on supervisory ratings, debt ratings and financial data as of March 31, 2010

Rates do not reflect the application of assessment credits. See Notes to Users for further information on risk categories and rate

* Assessment rates with a given risk category vary for several reasons, see 12 CFR Part 327 

http://www.fdic.gov/deposit/insurance/initiative/09FinalAD35.
FDIC Quarterly 18 2010, Volume 4, No. 3

FDIC Responds to Market Disruptions with TLGP

The FDIC Board approved the Temporary Liquidity 

Guarantee Program (TLGP) on October 13, 2008, as 

major disruptions in credit markets blocked access to 

liquidity for financial institutions.1 The TLGP improved 

access to liquidity through two programs: the Transaction Account Guarantee Program (TAGP), which fully 

guarantees noninterest-bearing transaction deposit 

accounts above $250,000, regardless of dollar amount; 

and the Debt Guarantee Program (DGP), which guarantees eligible senior unsecured debt issued by eligible 

institutions.

All insured depository institutions were eligible to 

participate in the TAGP. Institutions eligible for participation in the DGP were insured depository institutions, 

U.S. bank holding companies, certain U.S. savings and 

loan holding companies, and other affiliates of insured 

depository institutions that the FDIC designated as 

eligible entities.

FDIC Extends Guarantee Programs

Although financial markets improved significantly in 

the first half of 2009, portions of the industry were still 

affected by the recent economic turmoil. To facilitate 

the orderly phase-out of the TLGP, and to continue 

access to FDIC guarantees where they were needed, the 

FDIC Board extended both the DGP and TAGP.

On March 17, 2009, the Board of Directors of the FDIC 

voted to extend the deadline for issuance of guaranteed 

debt from June 30, 2009, to October 31, 2009. The 

Board also extended the expiration date of the guarantee from June 30, 2012, to the earlier of maturity of the 

debt or December 31, 2012. The FDIC imposed a 

surcharge on debt issued with a maturity of one year or 

more beginning in second quarter 2009.2

 The Board 

1

 The FDIC invoked the systemic risk exception pursuant to section 

141 of the Federal Deposit Improvement Act of 1991, 12 U.S.C 

1823(c)(4) on October 13, 2008. For further information on the TLGP, 

see http://www.fdic.gov/regulations/resources/TLGP/index.html. 2

 See http://www.fdic.gov/news/board/Mar1709rule.pdf. 

adopted a final rule on October 20, 2009, that allowed 

the DGP to expire on October 31, 2009.3

A final rule extending the TAGP six months, to June 30, 

2010, was adopted on August 26, 2009. Entities participating in the TAGP had the opportunity to opt out of the 

extended program. Depository institutions that remained 

in the extended program were subject to increased fees 

that were adjusted to reflect the institution’s risk.4

On June 22, 2010, the FDIC adopted a final rule 

extending the TAGP for another six months, through 

December 31, 2010. Under the final rule, which is 

almost identical to an interim rule adopted on April 13, 

the FDIC could extend the program for an additional 

12 months without further rulemaking.5

Noninterest-Bearing Transaction Accounts Fully 

Insured under Dodd-Frank Reform Bill

An amendment to the Dodd-Frank Wall Street Reform 

and Consumer Protection Act requires that noninterestbearing transaction accounts at all FDIC-insured institutions be fully insured for two years. This amendment 

takes effect on December 31, 2010. Coverage of 

noninterest-bearing transaction accounts is separate 

from the regular insurance limit of $250,000. Assessments for noninterest-bearing transaction accounts will 

be included in insured institutions’ regular assessments.6

Program Funded by Industry Fees and Assessments

The TLGP does not rely on taxpayer funding or the 

Deposit Insurance Fund. Both the TAGP and the DGP 

are paid for by direct user fees. Institutions participating in 

3

 See http://www.fdic.gov/regulations/laws/federal/2009/09finalAD37

Oct23.pdf. 4

 See http://www.fdic.gov/news/board/aug26no3.pdf. The final rule 

requires that interest rates on qualifying NOW accounts offered by 

banks participating in the program be reduced to 0.25 percent from 

0.50 percent. The rule also requires TAGP assessment reporting to be 

based on average daily balances but makes no changes to the assessment rates for participating institutions. 

5

 See http://www.fdic.gov/news/news/press/2010/pr10139.html. 6

 See http://www.fdic.gov/regulations/reform/summary.html. 

■ Debt Guarantee Program Ended October 31, 2009

■ Transaction Account Guarantee Program Extended to December 31, 2010

■ $264 Billion Guaranteed in Transaction Accounts over $250,000

■ $304 Billion Outstanding in Debt Guarantee Program

TEMPORARY LIQUIDITY GUARANTEE PROGRAM
FDIC Quarterly 19 2010, Volume 4, No. 3

Quarterly Banking Profile

Table I-C. Participation in Temporary Liquidity Guarantee Program

June 30, 2010 Total 

Eligible Entities

Number 

Opting In

Percent 

Opting In

Transaction Account Guarantee Program Extension to June 30, 2010

Depository Institutions with Assets <= $10 Billion�������������������������������������������������� 7,734 6,168 79.8

Depository Institutions with Assets > $10 Billion ���������������������������������������������������� 105 66 62.9

 Total Depository Institutions*���������������������������������������������������������������������������� 7,839 6,234 79.5

Debt Guarantee Program

Depository Institutions with Assets <= $10 Billion�������������������������������������������������� 7,734 4,079 52.7

Depository Institutions with Assets > $10 Billion ���������������������������������������������������� 105 95 90.5

 Total Depository Institutions*���������������������������������������������������������������������������� 7,839 4,174 53.2

Bank and Thrift Holding Companies and Non-Insured Affiliates ��������������������������� 5,992 3,363 56.1

 All Entities���������������������������������������������������������������������������������������������������������� 13,831 7,537 54.5

* Depository institutions include insured branches of foreign banks (IBAs)

noninterest-bearing transaction accounts over 

$250,000, about half the number of accounts reported 

at year-end 2009. These deposit accounts totaled $344 

billion, of which $264 billion was guaranteed under the 

TAGP. More than 5,500 FDIC-insured institutions 

reported noninterest-bearing transaction accounts over 

$250,000 in value.

$304 Billion in FDIC-Guaranteed Debt Outstanding 

at June 30, 2010

Guaranteed debt outstanding at the end of second quarter 2010 totaled $304 billion. This debt was issued by 

71 financial entities—42 insured depository institutions 

and 29 bank and thrift holding companies and nonbank 

affiliates. Some banking groups issued FDIC-guaranteed 

debt at both the subsidiary and holding company level, 

but most guaranteed debt was issued by holding companies or nonbank affiliates of depository institutions. 

Bank and thrift holding companies and nonbank affiliates issued 81 percent of FDIC-guaranteed debt 

outstanding at June 30, 2010.

Debt outstanding at June 30, 2010, had longer terms at 

issuance, compared to debt outstanding at year-end 

2008. Less than 1 percent of debt outstanding matures 

in one year or less, compared to 49 percent at year-end 

2008; and 80 percent matures more than two years after 

issuance, compared to 39 percent at December 31, 

2008. Among types of debt instruments, 91 percent was 

in medium-term notes, compared to 44 percent at yearend. The share of outstanding debt in commercial paper 

fell to less than 0.01 percent from 43 percent at yearend 2008.

Author: Katherine Wyatt

Chief, Financial Analysis Section

Division of Insurance and Research

(202) 898-6755

the TAGP through year-end 2009 were assessed an annual 

fee of 10 basis points. Fees for qualifying noninterestbearing transaction accounts guaranteed between January 

1, 2010 and June 30, 2010, were based on the participating 

entity’s risk category assignment under the FDIC’s riskbased premium system. Annualized fees are 15, 20, or 25 

basis points, depending on an institution’s risk category.

Fees for participation in the DGP were based on the 

maturity of debt issued and ranged from 50 to 100 basis 

points (annualized). A surcharge was imposed on debt 

issued with a maturity of one year or greater after April 

1, 2009. For debt that was not issued under the extension, that is, debt issued on or before June 30, 2009, and 

maturing on or before June 30, 2012, surcharges were 

10 basis points (annualized) on debt issued by insured 

depository institutions and 20 basis points (annualized) 

on debt issued by other participating entities. For debt 

issued under the extension, that is, debt issued after 

June 30, 2009, or debt that matures after June 30, 2012, 

surcharges were 25 basis points (annualized) on debt 

issued by insured depository institutions and 50 basis 

points (annualized) on debt issued by other participating entities. As of June 30, 2010, fees totaling 

$10.4 billion had been assessed under the DGP.

A Majority of Eligible Entities Have Chosen to 

Participate in the TLGP

Almost 80 percent of FDIC-insured institutions opted 

in to the TAGP extension through June 30, 2010. 

More than half of all eligible entities elected to opt in 

to the DGP. A list of institutions that opted out of the 

guarantee programs is posted at http://www.fdic.gov/

regulations/resources/TLGP/optout.html.

$264 Billion Guaranteed in Transaction Accounts 

over $250,000

According to second quarter 2010 Call and Thrift 

Financial Reports, insured institutions reported 319,742 
FDIC Quarterly 20 2010, Volume 4, No. 3

Table V-C. Fees Assessed Under TLGP

(dollar figures in millions)

Debt Guarantee Program

Transaction Account 

Guarantee Program*

Fees Assessed Surcharges Total Fee Amount Fees Collected

Fourth Quarter 2008�������������������������������������������������������������� $3,437 $3,437

First Quarter 2009 ����������������������������������������������������������������� 3,433 3,433 90

Second Quarter 2009 ������������������������������������������������������������ 1,413 385 1,797 179

Third Quarter 2009 ���������������������������������������������������������������� 691 280 971 182

Fourth Quarter 2009�������������������������������������������������������������� 503 207 709 188

First Quarter 2010** 14 14 207

Second Quarter 2010 ������������������������������������������������������������ 115

Total��������������������������������������������������������������������������������� $9,491 $872 $10,363 $961

* Pro-rated payment in arrears

** A review of data systems led us to recognize a nominal fee amount that had been dropped in error from previously reported amounts

Table VI-C. Term at Issuance of Debt Instruments Outstanding

June 30, 2010

(dollar figures in millions)

Commercial 

Paper

Interbank

Eurodollar

Deposits

Medium 

Term Notes

Other 

Interbank 

Deposits

Other 

Senior 

Unsecured

Debt

Other 

Term Note All Debt

Share 

by Term

Term at Issuance

90 days or less�������������������������������������� $0 $0 $0 $0 $0 $0 $0 0.0%

91-180 days������������������������������������������� 0 0 0 0 0 0 0 0.0%

181-364 days����������������������������������������� 0 0 0 17 0 0 17 0.0%

1-2 years ����������������������������������������������� 0 0 56,626 2 0 4,773 61,400 20.2%

Over 2-3 years �������������������������������������� 0 0 80,447 0 3,352 6,003 89,801 29.5%

Over 3 years������������������������������������������ 1 0 139,985 4 3,713 9,151 152,853 50.3%

Total������������������������������������������������ 1 0 277,057 23 7,064 19,926 304,071

Share of Total���������������������������������������� 0.0% 0.0% 91.1% 0.0% 2.3% 6.6%

Table IV-C. Debt Outstanding in Guarantee Program 

June 30, 2010

(dollar figures in millions) Number Debt Outstanding Cap1 for Group

Debt Outstanding 

Share of Cap

Insured Depository Institutions

Assets <= $10 Billion ������������������������������������������������������� 28 $1,586 $1,667 95.2

Assets > $10 Billion ��������������������������������������������������������� 14 55,584 125,391 44.3

Bank and Thrift Holding Companies,

Noninsured Affiliates�������������������������������������������������������������� 29 246,901 387,485 63.7

All Issuers����������������������������������������������������������������������� 71 304,071 514,542 59.1

1 The amount of FDIC-guaranteed debt that can be issued by each eligible entity, or its “cap,” is based on the amount of senior unsecured debt outstanding as of 

September 30, 2008. The cap for a depository institution with no senior unsecured debt outstanding at September 30, 2008, is set at 2 percent of total liabilitie

See http://www2.fdic.gov/qbp/2008dec/tlgp2c.html for more informat

Table III-C. Transaction Account Guarantee Program

(dollar figures in millions) June 30, 

2009

Sep. 30, 

2009

Dec. 31, 

2009

Mar. 31, 

2010

June 30, 

2010*

% Change 

10Q1-10Q2*

Number of Noninterest-Bearing Transaction Accounts 

over $250,000�������������������������������������������������������������� 681,776 647,755 688,835 308,434 319,742 3.7

Amount in Noninterest-Bearing Transaction Accounts 

over $250,000�������������������������������������������������������������� $905,395 $928,093 $1,009,429 $354,675 $343,582 -3.1

Amount Guaranteed ���������������������������������������������������������� $734,951 $766,154 $837,220 $277,567 $263,647 -5.0

* Data revised on 9/21/10

Table II-C. Cap on FDIC-Guaranteed Debt for Opt-In Entities

June 30, 2010

(dollar figures in millions)

Opt-In Entities with Senior Unsecured

Debt Outstanding at 9/30/2008

Opt-In Depository Institutions 

with no Senior Unsecured

Debt at 9/30/2008

Number 

 Debt Amount 

as of 

9/30/2008 Initial Cap Number

2% Liabilities 

as of 

9/30/2008

Total 

Entities

Total Initial 

Cap 

Depository Institutions with Assets 

<= $10 Billion*������������������������������������ 112 $3,442 $4,302 3,967 $30,165 4,079 $34,467

Depository Institutions with Assets 

> $10 Billion*�������������������������������������� 39 269,228 336,535 56 23,767 95 360,303

Bank and Thrift Holding Companies, 

Noninsured Affiliates�������������������������������� 81 397,714 497,143 3,282 N/A 3,363 497,143

Total��������������������������������������������������������� 232 670,384 837,980 7,305 53,932 7,537 891,913

* Depository institutions include insured branches of foreign banks (IBAs). N/A - Not applicab
FDIC Quarterly 21 2010, Volume 4, No. 3

Quarterly Banking Profile

period amount plus end-of-period amount plus any interim 

periods, divided by the total number of periods). For “poolingof-interest” mergers, the assets of the acquired institution(s) 

are included in average assets since the year-to-date income 

includes the results of all merged institutions. No adjustments 

are made for “purchase accounting” mergers. Growth rates 

represent the percentage change over a 12-month period in 

totals for institutions in the base period to totals for institutions in the current period.

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

institution’s home state. In addition, institutions may relocate 

across state lines or change their charters, resulting in an 

inter-regional or inter-industry migration, e.g., institutions 

can move their home offices between regions, and savings 

institutions can convert to commercial banks or commercial 

banks may convert to savings institutions.

ACCOUNTING CHANGES

Extended Net Operating Loss Carryback Period – The Worker, 

Homeownership, and Business Assistance Act of 2009, 

which was enacted on November 6, 2009, permits banks and 

other businesses, excluding those banking organizations that 

received capital from the U.S. Treasury under the Troubled 

Asset Relief Program, to elect a net operating loss carryback 

period of three, four, or five years instead of the usual carryback period of two years for any one tax year ending after 

December 31, 2007, and beginning before January 1, 2010. 

For calendar year banks, this extended carryback period 

applies to either the 2008 or 2009 tax year. The amount of 

the net operating loss that can be carried back to the fifth 

carryback year is limited to 50 percent of the available taxable income for that fifth year, but this limit does not apply 

to other carryback years.

Under generally accepted accounting principles, banks may 

not record the effects of this tax change in their balance 

sheets and income statements for financial and regulatory 

reporting purposes until the period in which the law was 

enacted, i.e., the fourth quarter of 2009. Therefore, banks 

should recognize the effects of this fourth quarter 2009 tax 

law change on their current and deferred tax assets and 

liabilities, including valuation allowances for deferred tax 

assets, in their Call Reports for December 31, 2009. Banks 

should not amend their Call Reports for prior quarters for the 

effects of the extended net operating loss carryback period.

The American Recovery and Reinvestment Act of 2009, 

which was enacted on February 17, 2009, permits qualifying 

small businesses, including FDIC-insured institutions, to elect 

a net operating loss carryback period of three, four, or five 

years instead of the usual carryback period of two years for 

any tax year ending in 2008 or, at the small business’s election, any tax year beginning in 2008. Under generally accepted accounting principles, institutions may not record the 

effect of this tax change in their balance sheets and income 

statements for financial and regulatory reporting purposes 

until the period in which the law was enacted, i.e., the first 

quarter of 2009.

Other-Than-Temporary Impairment – When the fair value of an 

investment in a debt or equity security is less than its cost 

basis, the impairment is either temporary or other-thantemporary. To determine whether the impairment is otherNotes to Users

This publication contains financial data and other information for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral 

part of this publication and provide information regarding 

the comparability of source data and reporting differences 

over time.

Tables I-A through VIII-A.

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

FDIC Quarterly Banking Profile is aggregated for all FDICinsured institutions, both commercial banks and savings institutions. Tables VI-A (Derivatives) and VII-A (Servicing, 

Securitization, and Asset Sales Activities) aggregate information only for insured commercial banks and state-chartered 

savings banks that file quarterly Call Reports. Table VIII-A 

(Trust Services) aggregates Trust asset and income information collected annually from all FDIC-insured institutions. 

Some tables are arrayed by groups of FDIC-insured institutions based on predominant types of asset concentration, 

while other tables aggregate institutions by asset size and 

geographic region. Quarterly and full-year data are provided 

for selected indicators, including aggregate condition and 

income data, performance ratios, condition ratios, and structural changes, as well as past due, noncurrent, and charge-off 

information for loans outstanding and other assets.

Tables I-B through IV-B.

A separate set of tables (Tables I-B through IV-B) provides 

comparative quarterly data related to the Deposit Insurance 

Fund (DIF), problem institutions, failed/assisted institutions, 

estimated FDIC-insured deposits, as well as assessment rate 

information. Depository institutions that are not insured by 

the FDIC through the DIF are not included in the FDIC 

Quarterly Banking Profile. U.S. branches of institutions headquartered in foreign countries and non-deposit trust companies 

are not included unless otherwise indicated. Efforts are made 

to obtain financial reports for all active institutions. However, 

in some cases, final financial reports are not available for institutions that have closed or converted their charters.

DATA SOURCES

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Consolidated Reports of 

Condition and Income (Call Reports) and the OTS Thrift 

Financial Reports submitted by all FDIC-insured depository 

institutions. This information is stored on and retrieved from 

the FDIC’s Research Information System (RIS) data base.

COMPUTATION METHODOLOGY

Parent institutions are required to file consolidated reports, 

while their subsidiary financial institutions are still required 

to file separate reports. Data from subsidiary institution 

reports are included in the Quarterly Banking Profile tables, 

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

for any double-counting of subsidiary data. Additionally, 

certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting 

and accounting requirements of the FFIEC Call Reports.

All asset and liability figures used in calculating performance 

ratios represent average amounts for the period (beginning-of-
FDIC Quarterly 22 2010, Volume 4, No. 3

Business Combinations and Noncontrolling (Minority) Interests – 

In December 2007, the FASB issued Statement No. 141 

(Revised), Business Combinations (FAS 141(R)), and 

Statement No. 160, Noncontrolling Interests in Consolidated 

Financial Statements (FAS 160). Under FAS 141(R), all business combinations, including combinations of mutual entities, 

are to be accounted for by applying the acquisition method. 

FAS 160 defines a noncontrolling interest, also called a 

minority interest, as the portion of equity in an institution’s 

subsidiary not attributable, directly or indirectly, to the parent 

institution. FAS 160 requires an institution to clearly present 

in its consolidated financial statements the equity ownership 

in and results of its subsidiaries that are attributable to the 

noncontrolling ownership interests in these subsidiaries. FAS 

141(R) applies prospectively to business combinations for 

which the acquisition date is on or after the beginning of the 

first annual reporting period beginning on or after December 

15, 2008. Similarly, FAS 160 is effective for fiscal years beginning on or after December 15, 2008. Thus, for institutions 

with calendar year fiscal years, these two accounting standards 

take effect in 2009. Beginning in March 2009, Institution 

equity capital and Noncontrolling interests are separately 

reported in arriving at Total equity capital and Net income.

FASB Statement No. 157 Fair Value Measurements issued in 

September 2006 and FASB Statement No. 159 The Fair Value 

Option for Financial Assets and Financial Liabilities issued in 

February 2007 – both are effective in 2008 with early adoption 

permitted in 2007. FAS 157 defines fair value and establishes 

a framework for developing fair value estimates for the fair 

value measurements that are already required or permitted 

under other standards. FASB FSP 157-4, issued in April 2009, 

provides additional guidance for estimating fair value in 

accordance with FAS 157 when the volume and level of 

activity for the asset or liability have significantly decreased. 

The FSP also includes guidance on identifying circumstances 

that indicate a transaction is not orderly. The FSP is effective 

for interim and annual reporting periods ending after June 15, 

2009, with early adoption permitted for periods ending after 

March 15, 2009.

Fair value continues to be used for derivatives, trading securities, and available-for-sale securities. Changes in fair value go 

through earnings for trading securities and most derivatives. 

Changes in the fair value of available-for-sale securities are 

reported in other comprehensive income. Available-for-sale 

securities and held-to-maturity debt securities are written 

down to fair value if impairment is other than temporary 

and loans held for sale are reported at the lower of cost or 

fair value.

FAS 159 allows institutions to report certain financial assets 

and liabilities at fair value with subsequent changes in fair 

value included in earnings. In general, an institution may 

elect the fair value option for an eligible financial asset or 

liability when it first recognizes the instrument on its balance 

sheet or enters into an eligible firm commitment.

FASB Statement No. 158 Employers’ Accounting for Defined Benefit 

Pension and Other Postretirement Plans – issued in September 

2006 requires a bank to recognize in 2007, and subsequently, 

the funded status of its postretirement plans on its balance 

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

underfunded plan is recognized as a liability. An adjustment is 

made to equity as accumulated other comprehensive income 

(AOCI) upon application of FAS 158, and AOCI is adjusted 

than-temporary, an institution must apply other pertinent 

guidance such as paragraph 16 of FASB Statement No. 115, 

Accounting for Certain Investments in Debt and Equity Securities; 

FASB Staff Position (FSP) FAS 115-1 and FAS 124-1, 

The Meaning of Other-Than-Temporary Impairment and Its 

Application to Certain Investments; FSP FAS 115-2 and FAS 

124-2, Recognition and Presentation of Other-Than-Temporary 

Impairments; paragraph 6 of Accounting Principles Board 

Opinion No. 18, The Equity Method of Accounting for 

Investments in Common Stock; Emerging Issues Task Force 

(EITF) Issue No. 99-20, Recognition of Interest Income and 

Impairment on Purchased Beneficial Interests and Beneficial 

Interests That Continue to Be Held by a Transferor in Securitized 

Financial Assets; and FSP EITF 99-20-1, Amendments to the 

Impairment Guidance of EITF Issue No. 99-20.

Under FSP FAS 115-2 and FAS 124-2 issued on April 9, 

2009, if the present value of cash flows expected to be collected on a debt security is less than its amortized cost basis, a 

credit loss exists. In this situation, if an institution does not 

intend to sell the security and it is not more likely than not 

that the institution will be required to sell the debt security 

before recovery of its amortized cost basis less any currentperiod credit loss, an other-than-temporary impairment has 

occurred. The amount of the total other-than-temporary 

impairment related to the credit loss must be recognized in 

earnings, but the amount of the total impairment related to 

other factors must be recognized in other comprehensive 

income, net of applicable taxes. Although the debt security 

would be written down to its fair value, its new amortized cost 

basis is the previous amortized cost basis less the other-thantemporary impairment recognized in earnings. In addition, if 

an institution intends to sell a debt security whose fair value 

is less than its amortized costs basis or it is more likely than 

not that the institution will be required to sell the debt security before recovery of its amortized cost basis, an other-thantemporary impairment has occurred and the entire difference 

between the security’s amortized cost basis and its fair value 

must be recognized in earnings.

For any debt security held at the beginning of the interim 

period in which FSP FAS 115-2 and FAS 124-2 is adopted 

for which an other-than-temporary impairment loss has been 

previously recognized, if an institution does not intend to sell 

such a debt security and it is not more likely than not that 

the institution will be required to sell the debt security before 

recovery of its amortized cost basis, the institution should 

recognize the cumulative effect of initially applying the FSP 

as an adjustment to the interim period’s opening balance of 

retained earnings, net of applicable taxes, with a corresponding adjustment to accumulated other comprehensive income. 

The cumulative effect on retained earnings must be calculated by comparing the present value of the cash flows expected 

to be collected on the debt security with the security’s amortized cost basis as of the beginning of the interim period of 

adoption.

FSP FAS 115-2 and FAS 124-2 are effective for interim and 

annual reporting periods ending after June 15, 2009. Early 

adoption of this FSP is permitted for periods ending after 

March 15, 2009, if certain conditions are met. Institutions 

are expected to adopt FSP FAS 115-2 and 124-2 for regulatory reporting purposes in accordance with the FSP’s effective 

date.
FDIC Quarterly 23 2010, Volume 4, No. 3

Quarterly Banking Profile

be consolidated. Under FAS 167, a bank must perform a 

qualitative assessment to determine whether its variable 

interest or interests give it a controlling financial interest in a 

VIE. If a bank’s variable interest or interests provide it with 

the power to direct the most significant activities of the VIE, 

and the right to receive benefits or the obligation to absorb 

losses that could potentially be significant to the VIE, the 

bank is the primary beneficiary of, and therefore must consolidate, the VIE.

Both FAS 166 and FAS 167 take effect as of the beginning of 

each bank’s first annual reporting period that begins after 

November 15, 2009, for interim periods therein, and for 

interim and annual reporting periods thereafter (i.e., as of 

January 1, 2010, for banks with a calendar year fiscal year). 

Earlier application is prohibited. Banks are expected to adopt 

FAS 166 and FAS 167 for Call Report purposes in accordance with the effective date of these two standards. Also, 

FAS 166 has modified the criteria that must be met in order 

for a transfer of a portion of a financial asset, such as a loan 

participation, to qualify for sale accounting. These changes 

apply to transfers of loan participations on or after the effective date of FAS 166. Therefore, banks with a calendar year 

fiscal year must account for transfers of loan participations 

on or after January 1, 2010, in accordance with FAS 166. In 

general, loan participations transferred before the effective 

date of FAS 166 (January 1, 2010, for calendar year banks) 

are not affected by this new accounting standard and pre-FAS 

166 participations that were properly accounted for as sales 

under FASB Statement No. 140 will continue to be reported 

as having been sold.

FASB Interpretation No. 48 on Uncertain Tax Positions – FASB 

Interpretation No. 48, Accounting for Uncertainty in Income 

Taxes (FIN 48), was issued in June 2006 as an interpretation 

of FASB Statement No. 109, Accounting for Income Taxes. 

Under FIN 48, the term “tax position” refers to “a position in 

a previously filed tax return or a position expected to be 

taken in a future tax return that is reflected in measuring 

current or deferred income tax assets and liabilities.” FIN 48 

further states that a “tax position can result in a permanent 

reduction of income taxes payable, a deferral of income taxes 

otherwise currently payable to future years, or a change in the 

expected realizability of deferred tax assets.” FIN 48 was originally issued effective for fiscal years beginning after December 

15, 2006. Banks must adopt FIN 48 for Call Report purposes 

in accordance with the interpretation’s effective date except 

as follows. On December 31, 2008, the FASB decided to defer 

the effective date of FIN 48 for eligible nonpublic enterprises 

and to require those enterprises to adopt FIN 48 for annual 

periods beginning after December 15, 2008. A nonpublic 

enterprise under certain conditions is eligible for deferral, 

even if it opted to issue interim or quarterly financial information in 2007 under earlier guidance that reflected the 

adoption of FIN 48.

FASB Statement No. 123 (Revised 2004) and Share-Based 

Payments – refer to previously published Quarterly Banking 

Profile notes: http://www2.fdic.gov/qbp/2008dec/qbpnot.html

FASB Statement No. 133 Accounting for Derivative Instruments and 

Hedging Activities – refer to previously published Quarterly 

Banking Profile notes: http://www2.fdic.gov/qbp/2008dec/

qbpnot.html

in subsequent periods as net periodic benefit costs are recognized in earnings.

FASB Statement No. 156 Accounting for Servicing of Financial 

Assets – issued in March 2006 and effective in 2007, requires 

all separately recognized servicing assets and liabilities to be 

initially measured at fair value and allows a bank the option 

to subsequently adjust that value by periodic revaluation and 

recognition of earnings or by periodic amortization to 

earnings.

FASB Statement No. 155 Accounting for Certain Hybrid Financial 

Instruments – issued in February 2006, requires bifurcation of 

certain derivatives embedded in interests in securitized financial assets and permits fair value measurement (i.e., a fair 

value option) for any hybrid financial instrument that contains an embedded derivative that would otherwise require 

bifurcation under FASB Statement No. 133, Accounting for 

Derivative Instruments and Hedging Activities (FAS 133). In 

addition, FAS 155 clarifies which interest-only and principalonly strips are not subject to FAS 133.

Purchased Impaired Loans and Debt Securities – Statement of 

Position 03-3, Accounting for Certain Loans or Debt Securities 

Acquired in a Transfer. The SOP applies to loans and debt 

securities acquired in fiscal years beginning after December 

15, 2004. In general, this Statement of Position applies to 

“purchased impaired loans and debt securities” (i.e., loans and 

debt securities that a bank has purchased, including those 

acquired in a purchase business combination, when it is 

probable, at the purchase date, that the bank will be unable 

to collect all contractually required payments receivable). 

Banks must follow Statement of Position 03-3 for Call Report 

purposes. The SOP does not apply to the loans that a bank 

has originated, prohibits “carrying over” or creation of valuation allowances in the initial accounting, and any subsequent 

valuation allowances reflect only those losses incurred by the 

investor after acquisition.

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

has the option to buy back the loans that collateralize the 

GNMA securities, when certain delinquency criteria are met, 

FASB Statement No. 140 requires that loans with this buyback option must be brought back on the issuer’s books as 

assets. The rebooking of GNMA loans is required regardless 

of whether the issuer intends to exercise the buy-back option. 

The banking agencies clarified in May 2005 that all GNMA 

loans that are rebooked because of delinquency should be 

reported as past due according to their contractual terms.

FASB Statements 166 & 167 – In June 2009, the FASB issued 

Statement No. 166, Accounting for Transfers of Financial 

Assets (FAS 166), and Statement No. 167, Amendments to 

FASB Interpretation No. 46(R) (FAS 167), which change 

the way entities account for securitizations and special purpose entities. FAS 166 revises FASB Statement No. 140, 

Accounting for Transfers and Servicing of Financial Assets 

and Extinguishments of Liabilities, by eliminating the concept of a “qualifying special-purpose entity,” creating the concept of a “participating interest,” changing the requirements 

for derecognizing financial assets, and requiring additional 

disclosures. FAS 167 revises FASB Interpretation No. 46(R), 

Consolidation of Variable Interest Entities, by changing how 

a bank or other company determines when an entity that is 

insufficiently capitalized or is not controlled through voting 

or similar rights, i.e., a “variable interest entity” (VIE), should 
FDIC Quarterly 24 2010, Volume 4, No. 3

Derivatives transaction types:

Futures and forward contracts – contracts in which the buyer 

agrees to purchase and the seller agrees to sell, at a specified 

future date, a specific quantity of an underlying variable or 

index at a specified price or yield. These contracts exist for 

a variety of variables or indices (traditional agricultural or 

physical commodities, as well as currencies and interest 

rates). Futures contracts are standardized and are traded on 

organized exchanges which set limits on counterparty credit 

exposure. Forward contracts do not have standardized terms 

and are traded over the counter.

Option contracts – contracts in which the buyer acquires the 

right to buy from or sell to another party some specified 

amount of an underlying variable or index at a stated price 

(strike price) during a period or on a specified future date, 

in return for compensation (such as a fee or premium). The 

seller is obligated to purchase or sell the variable or index at 

the discretion of the buyer of the contract.

Swaps – obligations between two parties to exchange a 

series of cash flows at periodic intervals (settlement dates), 

for a specified period. The cash flows of a swap are either 

fixed, or determined for each settlement date by multiplying 

the quantity (notional principal) of the underlying variable 

or index by specified reference rates or prices. Except for 

currency swaps, the notional principal is used to calculate 

each payment but is not exchanged.

Derivatives underlying risk exposure – the potential exposure 

characterized by the level of banks’ concentration in particular underlying instruments, in general. Exposure can result 

from market risk, credit risk, and operational risk, as well as, 

interest rate risk.

Domestic deposits to total assets – total domestic office deposits 

as a percent of total assets on a consolidated basis.

Earning assets – all loans and other investments that earn 

interest or dividend income.

Efficiency ratio – Noninterest expense less amortization of 

intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net 

operating revenues that are absorbed by overhead expenses, 

so that a lower value indicates greater efficiency.

Estimated insured deposits – in general, insured deposits are 

total domestic deposits minus estimated uninsured deposits. 

Beginning March 31, 2008, for institutions that file Call 

reports, insured deposits are total assessable deposits minus 

estimated uninsured deposits. Beginning September 30, 2009, 

insured deposits include deposits in accounts of $100,000 to 

$250,000 that are covered by a temporary increase in the 

FDIC’s standard maximum deposit insurance amount 

(SMDIA).

Failed/assisted institutions – an institution fails when regulators 

take control of the institution, placing the assets and liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the 

FDIC to provide funds to cover losses. An institution is 

defined as “assisted” when the institution remains open and 

receives assistance in order to continue operating.

Fair Value – the valuation of various assets and liabilities on 

the balance sheet—including trading assets and liabilities, 

available-for-sale securities, loans held for sale, assets and 

liabilities accounted for under the fair value option, and 

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 – assessable deposits consist of DIF deposits 

(deposits insured by the FDIC Deposit Insurance Fund) in 

banks’ domestic offices with certain adjustments.

Assets securitized and sold – total outstanding principal balance 

of assets securitized and sold with servicing retained or other 

seller- provided credit enhancements.

Capital Purchase Program (CPP) – As announced in October 

2008 under the TARP, the Treasury Department purchase of 

noncumulative perpetual preferred stock and related warrants 

that is treated as Tier 1 capital for regulatory capital purposes 

is included in “Total equity capital.” Such warrants to purchase common stock or noncumulative preferred stock issued 

by publicly-traded banks are reflected as well in “Surplus.” 

Warrants to purchase common stock or noncumulative preferred stock of not-publicly-traded bank stock classified in a 

bank’s balance sheet as “Other liabilities.”

Construction and development loans – includes loans for all 

property types under construction, as well as loans for land 

acquisition and development.

Core capital – common equity capital plus noncumulative 

perpetual preferred stock plus minority interest in consolidated subsidiaries, less goodwill and other ineligible intangible 

assets. The amount of eligible intangibles (including servicing 

rights) included in core capital is limited in accordance with 

supervisory capital regulations.

Cost of funding earning assets – total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets.

Credit enhancements – techniques whereby a company attempts 

to reduce the credit risk of its obligations. Credit enhancement may be provided by a third party (external credit 

enhancement) or by the originator (internal credit enhancement), and more than one type of enhancement may be 

associated with a given issuance.

Deposit Insurance Fund (DIF) – The Bank (BIF) and Savings 

Association (SAIF) Insurance Funds were merged in 2006 by 

the Federal Deposit Insurance Reform Act to form the DIF.

Derivatives notional amount – The notional, or contractual, 

amounts of derivatives represent the level of involvement in 

the types of derivatives transactions and are not a quantification of market risk or credit risk. Notional amounts represent 

the amounts used to calculate contractual cash flows to be 

exchanged.

Derivatives credit equivalent amount – the fair value of the 

derivative plus an additional amount for potential future 

credit exposure based on the notional amount, the remaining 

maturity and type of the contract.
FDIC Quarterly 25 2010, Volume 4, No. 3

Quarterly Banking Profile

trading liabilities, less revaluation losses on assets held in 

trading accounts.

Other real estate owned – primarily foreclosed property. Direct 

and indirect investments in real estate ventures are excluded. 

The amount is reflected net of valuation allowances. For 

institutions that file a Thrift Financial Report (TFR), the 

valuation allowance subtracted also includes allowances for 

other repossessed assets. Also, for TFR filers the components 

of other real estate owned are reported gross of valuation 

allowances.

Percent of institutions with earnings gains – the percent of institutions that increased their net income (or decreased their 

losses) compared to the same period a year earlier.

“Problem” institutions – federal regulators assign a composite 

rating to each financial institution, based upon an evaluation 

of financial and operational criteria. The rating is based on a 

scale of 1 to 5 in ascending order of supervisory concern. 

“Problem” institutions are those institutions with financial, 

operational, or managerial weaknesses that threaten their 

continued financial viability. Depending upon the degree of 

risk and supervisory concern, they are rated either a “4” or 

“5.” The number and assets of “problem” institutions are 

based on FDIC composite ratings. Prior to March 31, 2008, 

for institutions whose primary federal regulator was the OTS, 

the OTS composite rating was used.

Recourse – an arrangement in which a bank retains, in form or 

in substance, any credit risk directly or indirectly associated 

with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the 

bank’s claim on the asset. If a bank has no claim on an asset 

it has sold, then the retention of any credit risk is recourse.

Reserves for losses – the allowance for loan and lease losses on 

a consolidated basis.

Restructured loans and leases – loan and lease financing 

receivables with terms restructured from the original contract. 

Excludes restructured loans and leases that are not in compliance with the modified terms.

Retained earnings – net income less cash dividends on common and preferred stock for the reporting period.

Return on assets – bank net income (including gains or losses 

on securities and extraordinary items) as a percentage of average total (consolidated) assets. The basic yardstick of bank 

profitability.

Return on equity – bank net income (including gains or losses 

on securities and extraordinary items) as a percentage of 

average total equity capital.

Risk-based capital groups – definition:

(Percent)

Total 

Risk-Based 

Capital*

Tier 1

Risk-Based 

Capital*

Tier 1 

Leverage

Tangible

Equity

Well-capitalized ≥10 and ≥6 and ≥5 –

Adequately 

capitalized ≥8 and ≥4 and ≥4 –

Undercapitalized ≥6 and ≥3 and ≥3 –

Significantly 

undercapitalized <6 or <3 or <3 and >2

Critically 

undercapitalized – – – ≤2

* As a percentage of risk-weighted assets.

foreclosed assets—involves the use of fair values. During 

periods of market stress, the fair values of some financial 

instruments and nonfinancial assets may decline.

FHLB advances – all borrowings by FDIC insured institutions 

from the Federal Home Loan Bank System (FHLB), as reported by Call Report filers and by TFR filers.

Goodwill and other intangibles – intangible assets include 

servicing rights, purchased credit card relationships, and other 

identifiable intangible assets. Goodwill is the excess of the 

purchase price over the fair market value of the net assets 

acquired, less subsequent impairment adjustments. Other 

intangible assets are recorded at fair value, less subsequent 

quarterly amortization and impairment adjustments.

Loans secured by real estate – includes home equity loans, 

junior liens secured by 1-4 family residential properties, and 

all other loans secured by real estate.

Loans to individuals – includes outstanding credit card balances 

and other secured and unsecured consumer loans.

Long-term assets (5+ years) – loans and debt securities with 

remaining maturities or repricing intervals of over five years.

Maximum credit exposure – the maximum contractual credit 

exposure remaining under recourse arrangements and other 

seller-provided credit enhancements provided by the reporting bank to securitizations.

Mortgage-backed securities – certificates of participation in 

pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored or 

private enterprises. Also, see “Securities,” below.

Net charge-offs – total loans and leases charged off (removed 

from balance sheet because of uncollectibility), less amounts 

recovered on loans and leases previously charged off.

Net interest margin – the difference between interest and 

dividends earned on interest-bearing assets and interest paid 

to depositors and other creditors, expressed as a percentage of 

average earning assets. No adjustments are made for interest 

income that is tax exempt.

Net loans to total assets – loans and lease financing receivables, net of unearned income, allowance and reserves, as a 

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 charters – insured institutions filing quarterly financial 

reports for the first time.

Other borrowed funds – federal funds purchased, securities sold 

with agreements to repurchase, demand notes issued to the 

U.S. Treasury, FHLB advances, other borrowed money, mortgage indebtedness, obligations under capitalized leases and 
FDIC Quarterly 26 2010, Volume 4, No. 3

Total Base Assessment Rates*

Risk 

Category 

I

Risk 

Category 

II

Risk 

Category 

III

Risk 

Category 

IV

Initial base 

assessment rate 12–16 22 32 45

Unsecured debt 

adjustment -5 –0 -5–0 -5 –0 -5–0

Secured liability 

adjustment 0 –8 0 –11 0 –16 0 –22.5

Brokered deposit 

adjustment – 0 –10 0 –10 0 –10

Total base 

assessment rate 7–24.0 17–43.0 27–58.0 40–77.5

*All amounts for all risk categories are in basis points annually. Total base rates that are 

not the minimum or maximum rate will vary between these rates. 

Beginning in 2007, each institution is assigned a risk-based 

rate for a quarterly assessment period near the end of the 

quarter following the assessment period. Payment is generally 

due on the 30th day of the last month of the quarter following the assessment period. Supervisory rating changes are 

effective for assessment purposes as of the examination 

transmittal date. For institutions with long-term debt issuer 

ratings, changes in ratings are effective for assessment purposes as of the date the change was announced.

Special Assessment – On May 22, 2009, the FDIC board 

approved a final rule that imposed a 5 basis point special 

assessment as of June 30, 2009. The special assessment was 

levied on each insured depository institution’s assets minus its 

Tier 1 capital as reported in its report of condition as of June 

30, 2009. The special assessment will be collected September 

30, 2009, at the same time that the risk-based assessment for 

the second quarter of 2009 is collected. The special assessment for any institution was capped at 10 basis points of the 

institution’s assessment base for the second quarter of 2009 

risk-based assessment.

Prepaid Deposit Insurance Assessments – On November 12, 

2009, the FDIC Board of Directors adopted a final rule 

requiring insured depository institutions (except those that 

are exempted) to prepay their quarterly risk-based deposit 

insurance assessments for the fourth quarter of 2009, and for 

all of 2010, 2011, and 2012, on December 30, 2009. Each 

institution’s regular risk-based deposit insurance assessment 

for the third quarter of 2009, which is paid in arrears, also is 

payable on December 30, 2009.

Risk-weighted assets – assets adjusted for risk-based capital 

definitions which include on-balance-sheet as well as offbalance-sheet items multiplied by risk-weights that range 

from zero to 200 percent. A conversion factor is used to assign 

a balance sheet equivalent amount for selected off-balancesheet accounts.

Securities – excludes securities held in trading accounts. 

Banks’ securities portfolios consist of securities designated as 

“held-to-maturity,” which are reported at amortized cost 

(book value), and securities designated as “available-for-sale,” 

reported at fair (market) value.

Risk Categories and Assessment Rate Schedule – The current risk 

categories became effective January 1, 2007. Capital ratios 

and supervisory ratings distinguish one risk category from 

another. The following table shows the relationship of risk 

categories (I, II, III, IV) to capital and supervisory groups as 

well as the initial base assessment rates (in basis points), 

effective April 1, 2009 for each risk category. Supervisory 

Group A generally includes institutions with CAMELS 

composite ratings of 1 or 2; Supervisory Group B generally 

includes institutions with a CAMELS composite rating of 3; 

and Supervisory Group C generally includes institutions with 

CAMELS composite ratings of 4 or 5. For purposes of riskbased assessment capital groups, undercapitalized includes 

institutions that are significantly or critically 

undercapitalized.

Capital Category

Supervisory Group

A B C

1. Well Capitalized I

12–16 bps II

22 bps

III

32 bps

2. Adequately Capitalized II

22 bps

3. Undercapitalized III

32 bps

IV

45 bps

Effective April 1, 2009, the initial base assessment rates are 

12 to 45 basis points. An institution’s total assessment rate 

may be less than or greater than its initial base assessment 

rate as a result of additional risk adjustments.

The base assessment rates for most institutions in Risk 

Category I are based on a combination of financial ratios and 

CAMELS component ratings (the financial ratios method).

For large institutions in Risk Category I (generally those with 

at least $10 billion in assets) that have long-term debt issuer 

ratings, assessment rates are determined by equally weighting 

the institution’s CAMELS component ratings, long-term debt 

issuer ratings, and the financial ratios method assessment rate. 

For all large Risk Category I institutions, additional risk factors are considered to determine whether assessment rates 

should be adjusted. This additional information includes market data, financial performance measures, considerations of 

the ability of an institution to withstand financial stress, and 

loss severity indicators. Any adjustment is limited to no more 

than one basis point.

Effective April 1, 2009, the FDIC introduced three possible 

adjustments to an institution’s initial base assessment rate: 

(1) a decrease of up to 5 basis points for long-term unsecured 

debt and, for small institutions, a portion of Tier 1 capital; 

(2) an increase not to exceed 50 percent of an institution’s 

assessment rate before the increase for secured liabilities in 

excess of 25 percent of domestic deposits; and (3) for nonRisk Category I institutions, an increase not to exceed 10 

basis points for brokered deposits in excess of 10 percent of 

domestic deposits. After applying all possible adjustments, 

minimum and maximum total base assessment rates for each 

risk category are as follows:
FDIC Quarterly 27 2010, Volume 4, No. 3

Quarterly Banking Profile

Debt Guarantee Program (DGP) provides a full guarantee of 

senior unsecured debt1

 issued by eligible institutions after 

October 14, 2008. Initially, debt issued before June 30, 

2009, and maturing on or before June 30, 2012, could be 

guaranteed. On March 17, 2009, the deadline for issuance 

under the program was extended to October 31, 2009, and 

the expiration of the guarantee was set at the earlier of 

maturity of the debt or December 31, 2012. Institutions 

eligible for participation in the debt guarantee program 

include insured depository institutions, U.S. bank holding 

companies, certain U.S. savings and loan holding companies, and other affiliates of an insured depository institution 

that the FDIC designates as eligible entities. The FDIC 

Board adopted a final rule on October 20, 2009, that established a limited six-month emergency guarantee facility 

upon expiration of the DGP.

Trust assets – market value, or other reasonably available 

value of fiduciary and related assets, to include marketable 

securities, and other financial and physical assets. Common 

physical assets held in fiduciary accounts include real estate, 

equipment, collectibles, and household goods. Such fiduciary 

assets are not included in the assets of the financial 

institution.

Unearned income & contra accounts – unearned income for Call 

Report filers only.

Unused loan commitments – includes credit card lines, home 

equity lines, commitments to make loans for construction, 

loans secured by commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held 

for sale, which are accounted for as derivatives on the balance 

sheet.)

Volatile liabilities – the sum of large-denomination time deposits, foreign-office deposits, federal funds purchased, securities 

sold under agreements to repurchase, and other borrowings.

Yield on earning assets – total interest, dividend, and fee 

income earned on loans and investments as a percentage of 

average earning assets.

1

 Senior unsecured debt generally includes term Federal funds 

purchased, promissory notes, commercial paper, unsubordinated 

unsecured notes, certificates of deposit (CDs) standing to the credit of 

a bank, and U.S. dollar denominated bank deposits owed to an insured 

depository institution.

Securities gains (losses) – realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments 

for income taxes. Thrift Financial Report (TFR) filers also 

include gains (losses) on the sales of assets held for sale.

Seller’s interest in institution’s own securitizations – the reporting 

bank’s ownership interest in loans and other assets that have 

been securitized, except an interest that is a form of recourse 

or other seller-provided credit enhancement. Seller’s interests 

differ from the securities issued to investors by the securitization structure. The principal amount of a seller’s interest is 

generally equal to the total principal amount of the pool of 

assets included in the securitization structure less the principal amount of those assets attributable to investors, i.e., in the 

form of securities issued to investors.

Subchapter S Corporation – a Subchapter S corporation is 

treated as a pass-through entity, similar to a partnership, for 

federal income tax purposes. It is generally not subject to any 

federal income taxes at the corporate level. This can have the 

effect of reducing institutions’ reported taxes and increasing 

their after-tax earnings.

Temporary Liquidity Guarantee Program (TLGP) – was approved 

by the FDIC Board on October 13, 2008. The TLGP was 

designed to help relieve the crisis in the credit markets by 

giving banks access to liquidity during a time of global financial distress. Participation in the TLGP is voluntary. The 

TLGP has two components:

Transaction Account Guarantee Program (TAGP) provides a full 

guarantee of non-interest-bearing deposit transaction 

accounts above $250,000, at depository institutions that 

elected to participate in the program. On August 26, 2009, 

the FDIC Board voted to extend the TAGP six months 

beyond its original expiration date to June 30, 2010. On 

April 13, 2010, the FDIC Board adopted an interim rule 

extending the TAG program for six months through 

December 31, 2010, with a possibility of an additional 

12-month extension, through December 31, 2011.