Quarterly Banking Profile
 

FOURTH QUARTER 2005 

•	 Full-Year Earnings Set New Record For Fifth Year In A Row 

•	 Fourth-Quarter Net Income Of $32.9 Billion Is Fourth-Highest Ever, 

But Quarterly ROA Falls To A Three-Year Low 

•	 Surge In Bankruptcy Filings Produces Spike In Credit-Card 

Charge-Offs 

•	 Reduction In Loss Reserves Resumes At Large Banks 

•	 2005 Is First Year With No Insured Institution Failures 

Earnings Continue to Improve Over Year-Earlier Levels 

Challenged by a flattening yield curve and softening loan demand, FDIC-insured institutions managed 

to post their fourth-best earnings quarter ever in the fourth quarter of 2005. Net income of the 8,832 

insured banks and thrifts was $1.7 billion (5.4 percent) higher than in the fourth quarter of 2004, 

thanks primarily to a $3.2-billion (4.0-percent) increase in net interest income. Noninterest income 

made a modest $373 million (0.7 percent) pretax contribution to the improvement in earnings. Against 

these positive factors, expenses for loan-loss provisions were $893 million (11.6 percent) higher, and 

gains on sales of securities and other assets were $624 million (56.4 percent) lower. Noninterest 

expenses registered a small increase, rising by $824 million (1.0 percent) from a year earlier. The 

average return on assets (ROA) in the fourth quarter was 1.22 percent, the lowest quarterly level 

since the fourth quarter of 2002. The average ROA in the fourth quarter of 2004 was 1.25 percent. 

Almost half of all insured institutions (49.7 percent) reported a fourth-quarter ROA of one percent or 

better, slightly above the 48.0 percent of institutions that achieved that benchmark in the fourth 

quarter of 2004. At the other end of the performance spectrum, the share of unprofitable institutions 

declined slightly to 9.4 percent, from 9.5 percent a year earlier. More than half of all institutions 

reported higher quarterly earnings (58.6 percent), and higher quarterly ROAs (51.2 percent) than a 

year ago. 

Loan Growth Offsets Narrower Margins 

The average net interest margin in the fourth quarter was 3.49 percent, down slightly from 3.50 

percent in the third quarter, and matching the fourteen-year low level reached in the second quarter. 

The average margin in the fourth quarter of 2004 was 3.63 percent. A combination of rising shortterm interest rates and relatively stable longer-term rates has caused the spread between these rates 

to diminish considerably throughout 2005. For insured banks and thrifts, which have traditionally lent 

"long" and borrowed "short," the narrowing of this spread has put downward pressure on the relative 

profitability of their lending and deposit-taking. The effect has been less pronounced at smaller 

institutions during 2005. They obtain most of their funding from smaller denomination "core" deposits, 

which tend to reprice upward more slowly when short-term interest rates rise. Large institutions fund 

a larger share of their assets with short-term nondeposit liabilities, which reprice more quickly when 

rates rise. A majority of institutions (54.9 percent) reported higher net interest margins for the full year 

in 2005 than they reported for 2004, but most of the improvements occurred prior to the fourth quarter, 

and they were concentrated among smaller institutions. The 4.0-percent increase in net interest 

income between the fourth quarter of 2004 and the fourth quarter of 2005 was made possible by 7.9­

percent growth in interest-earning assets during that period which outweighed the negative effect of 

the narrower average margin. 

FEDERAL DEPOSIT INSURANCE CORPORATION	 ALL FDIC-INSURED INSTITUTIONS 
FDIC Quarterly Banking Profile 

Annual Profits Rise, But Profitability Declines 

For the full year, the industry's net income totaled a record $134.2 billion, an increase of $11.8 billion (9.6 

percent) over the total earned in 2004. A comparison of the annual earnings reported at these year-ends 

exaggerates the underlying improvement in earnings, because of the effect of merger accounting on 

earnings reported for 2004. If adjustments are made for the impact of purchase accounting applied to 

mergers in 2004 and 2005, the year-to-year earnings improvement is closer to $8.4 billion (6.6 percent). 

Similarly, the ROA for 2004, based on full-year earnings reported at year-end, was 1.28 percent, the 

same as for 2005; adjusted for the effect of merger accounting, the 2004 ROA would have been 

approximately 1.33 percent, and the adjusted ROA for 2005 would have been 1.29 percent, the lowest 

annual average since 2001. Even with these adjustments, however, earnings were still higher in 2005, 

with almost two out of every three institutions (64.5 percent) registering increased net income. More 

than half of all institutions (53.4 percent) reported higher ROAs in 2005. The number of institutions 

reporting negative net income for the year -- 535 -- was the same as in 2004. 

Approach of New Bankruptcy Rules Leads to Increase in Loan Losses 

Both net charge-offs and noncurrent loans increased in the fourth quarter, but the causes of these 

increases suggest that this may not be the beginning of a trend. Total net charge-offs increased to $9.9 

billion, the highest quarterly level in two years, and $802 million (8.8 percent) above the level of a year 

earlier. The increase was caused by a $1.1-billion (24.6-percent) increase in net charge-offs on credit 

card loans. During the fourth quarter, personal bankruptcy filings soared to record levels, as borrowers 

sought Chapter 7 protection from their debts before a new, more stringent bankruptcy law took effect in 

mid-October. The jump in bankruptcies was directly reflected in higher loan losses in credit card 

portfolios. No other loan categories showed a significant year-over-year increase in quarterly chargeoffs; absent the increase in losses on credit cards, total charge-offs in the fourth quarter were $324 

million (3.6 percent) lower than a year earlier. 

New Accounting Rules Continue to Drive Increase in 

Reported Noncurrent Mortgages 

Noncurrent loans (loans 90 days or more past due or in nonaccrual status) increased for the second 

consecutive quarter, after declining in each of the previous eleven quarters. The $1.2-billion (2.4­

percent) increase in the fourth quarter, like the $2.9-billion increase in the third quarter, was mainly the 

result of rebooking of delinquent GNMA mortgage loans under new accounting guidelines. Insured 

institutions added $1.8 billion to their rebooked noncurrent GNMA mortgages in the fourth quarter, after a 

$2.8-billion increase in the third quarter. No other loan category registered a sizable increase in 

noncurrent levels in the fourth quarter. Noncurrent commercial and industrial (C&I) loans declined by 

$1.1 billion (11.7 percent) during the quarter. 

Reserves Decline to Four-Year Low 

The industry added $1.3 billion less in loan-loss provisions to its reserves than it charged-off during the 

fourth quarter, and this difference contributed to a $2.0-billion (2.6-percent) decline in reserves. This is 

the seventh time in the past eight quarters that reserves have declined, with most of the reductions 

occurring at a few large institutions. At the end of 2005, insured institutions held $1.15 in reserves for 

every $100 of loans and leases on their balance sheets, the lowest level in more than 20 years. The 

industry's "coverage ratio" declined from $1.63 in reserves for every $1.00 in noncurrent loans to $1.55 

during the fourth quarter. This is the second consecutive quarter that the coverage ratio has declined, 

after eleven consecutive quarters of improvement, and the ratio ended the year at its lowest level since 

the first quarter of 2004. Yearend reserves totaled $77.4 billion, the lowest level since the end of the 

third quarter of 2001. 

Merger-Related Goodwill Continues to Grow 

Equity capital increased by $22.0 billion (2.0 percent) during the fourth quarter. Retained earnings 

contributed $14.2 billion, and merger-related goodwill added $10.2 billion. These additions to equity 

were partially offset by declines in market values on institutions' securities held for sale. The lower 

market values, caused by rising interest rates, were reflected in adjustments to equity capital. Goodwill 

has grown substantially in recent years, as accounting changes that took effect after 2001 eliminated the 

use of pooling-of-interest accounting for mergers and eliminated the amortization of goodwill. A few 

FOURTH QUARTER 2005 ALL FDIC-INSURED INSTITUTIONS 
 

FDIC Quarterly Banking Profile 

large mergers since that time have caused the total amount of goodwill on the industry's balance sheet 

to almost triple, from $86.8 billion at the end of 2001 to $249.8 billion at the end of 2005. Five large 

institutions account for more than 42 percent of the industry's total goodwill. While goodwill has been the 

most rapid-growing component of equity capital, other components have increased as well. The 

industry's regulatory capital, which does not include goodwill or adjustments for securities values, 

increased by $20.8 billion (2.0 percent) during the fourth quarter, and by $89.3 billion (9.3 percent) during 

the 12 months ended December 31. More than 99 percent of all insured institutions, representing more 

than 99 percent of total industry assets, were in the highest regulatory capital category at the end of 

2005. 

Growth in Residential Mortgage Assets Slows 

Loans grew at a faster rate than assets in the fourth quarter (2.2 percent vs. 1.7 percent). This is the 

sixth time in the last seven quarters that the growth rate of loans has outstripped that of total assets, but 

the rate of loan growth also slowed for a fourth consecutive quarter. Residential mortgage assets 

(residential mortgage loans, home equity loans and mortgage-backed securities) registered their smallest 

increase in two years in the fourth quarter, rising by $24.0 billion (0.6 percent). They accounted for only 

13.6 percent of the increase in total industry assets during the quarter. The slack was taken up by 

growth in C&I loans (up $35.5 billion, or 3.4 percent), real estate construction and development loans (up 

$31.1 billion, or 7.5 percent), and credit-card loans (up $26.7 billion, or 7.2 percent). Loans secured by 

commercial real estate properties increased by $16.9 billion (2.1 percent). Altogether, loans to 

commercial borrowers increased by $101.0 billion (3.3 percent), accounting for 57.3 percent of total 

asset growth. Home equity loans registered their first quarterly decline in five and a half years, falling by 

$3.9 billion (0.7 percent). This decline was caused by borrowers converting from variable-rate home 

equity loans to fixed-rate junior lien mortgages, in response to rising short-term interest rates. Deposit 

growth was strong, with total deposits increasing by $172.2 billion (2.5 percent). Interest-bearing 

deposits rose by $129.3 billion (2.7 percent), as insured institutions grew their brokered deposits by 

$51.2 billion (11.9 percent). Increased deposits funded 97.5 percent of total asset growth in the fourth 

quarter. Nondeposit liabilities declined by $17.6 billion (0.7 percent). 

2005 is First Year With No Failures, "Problem List" Shrinks to 

Historic Low at Yearend 

The number of FDIC-insured institutions filing quarterly financial reports declined from 8,858 in the third 

quarter to 8,832 in the fourth. There were 57 new charters added during the fourth quarter. Eighty-one 

institutions were merged into other institutions during the quarter, and one institution had not yet filed a 

yearend report when this issue of the QBP went to press. No insured institution failed during the fourth 

quarter, marking the sixth consecutive quarter without a failure of an FDIC-insured commercial bank or 

savings institution. This is the most quarters without a failure since the inception of Federal deposit 

insurance. 2005 was the first calendar year without a failure of a federally insured bank or thrift. The 

number of institutions on the FDIC’s "Problem List" declined from 68 to 52 institutions during the fourth 

quarter. This is the smallest number of "problem" institutions in the 36 years for which data are available. 

Total assets of "problem" institutions declined from $20.9 billion to $6.6 billion. Two mutually-owned 

savings institutions, with $2 billion in assets, converted to stock ownership during the fourth quarter. For 

all of 2005, there were 179 new charters added, the largest annual total since 2000. Mergers absorbed 

315 institutions during the year. The net reduction in the number of insured financial institutions for all of 

2005 was 144, the smallest reduction since 1985. 

ALL FDIC-INSURED INSTITUTIONS Fourth QUARTER 2005 
TABLE I-A. Selected Indicators, All FDIC-Insured Institutions* 

2005 2004 2003 2002 2001 2000 1999 

Return on assets (%) ............................................................... 1.28 1.28 1.38 1.30 1.14 1.14 1.26 

Return on equity (%) ............................................................... 12.46 13.22 15.04 14.11 12.96 13.53 14.71 

Core capital (leverage) ratio (%) ............................................. 8.25 8.11 7.88 7.86 7.78 7.71 7.80 

Noncurrent assets plus 

other real estate owned to assets (%) .................................. 0.50 0.53 0.75 0.90 0.87 0.71 0.63 

Net charge-offs to loans (%) .................................................... 0.49 0.56 0.78 0.97 0.83 0.59 0.53 

Asset growth rate (%) .............................................................. 7.63 11.35 7.58 7.20 5.44 8.41 5.40 

Net interest margin (%) ........................................................... 3.49 3.53 3.73 3.96 3.78 3.77 3.89 

Net operating income growth (%) ............................................ 11.85 4.03 15.98 18.45 -0.98 1.71 19.73 

Number of institutions reporting .............................................. 8,832 8,976 9,181 9,354 9,614 9,904 10,222 

Commercial banks ................................................................ 7,527 7,631 7,770 7,888 8,080 8,315 8,580 

Savings institutions ............................................................... 1,305 1,345 1,411 1,466 1,534 1,589 1,642 

Percentage of unprofitable institutions (%) .............................. 6.06 5.96 5.98 6.67 8.24 7.53 7.64 

Number of problem institutions ................................................ 52 80 116 136 114 94 79 

Assets of problem institutions (in billions) ............................... $7 $28 $30 $39 $40 $24 $10 

Number of failed/assisted institutions ...................................... 0 4 3 11 4 7 8 

* Excludes insured branches of foreign banks (IBAs) 

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

(dollar figures in millions) 

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

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

CONDITION DATA 

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

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

1-4 Family residential mortgages .................................................................................... 

Commercial real estate ................................................................................................... 

Construction and development ........................................................................................ 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Direct and indirect investments in real estate .................................................................... 

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

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

FHLB advances .................................................................................................................. 

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

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

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

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

8,832 

2,150,774 

$10,877,075 

4,141,837 

2,046,277 

824,035 

448,664 

534,264 

1,085,816 

947,881 

395,196 

51,702 

491,994 

3,155 

6,716,075 

77,354 

6,638,721 

1,893,096 

4,081 

344,644 

1,996,534 

10,877,075 

7,141,178 

6,220,530 

920,648 

2,062,728 

131,428 

422,722 

1,119,019 

58,763 

49,894 

3,389 

1,064 

1,139,777 

9,497,484 

598,338 

7,095,324 

16,536,502 

1,114,423 

101,919,367 

4th Quarter 

2005 

8,858 8,976 

2,138,179 2,097,165 

$10,700,452 $10,105,615 

4,063,943 3,683,887 

2,019,329 1,836,808 

807,127 752,558 

417,533 336,943 

538,168 490,676 

1,050,357 967,678 

932,787 930,011 

368,485 398,976 

50,724 48,804 

482,301 491,794 

3,188 3,355 

6,576,924 6,118,819 

79,393 82,044 

6,497,531 6,036,774 

1,891,128 1,859,954 

4,138 4,286 

329,458 316,014 

1,978,197 1,888,587 

10,700,452 10,105,615 

6,968,989 6,584,557 

6,066,238 5,718,665 

902,751 865,892 

2,073,754 1,904,627 

125,014 118,536 

435,753 458,501 

1,096,942 1,039,394 

53,403 50,880 

48,709 48,813 

2,966 2,529 

926 853 

1,138,888 1,114,064 

9,354,497 8,804,634 

591,635 541,857 

6,898,658 6,507,785 

16,095,041 14,899,952 

1,023,256 928,100 

99,595,515 88,305,599 

3rd Quarter 

2005 

4th Quarter 

2004 

-1.6 

2.6 

7.6 

12.4 

11.4 

9.5 

33.2 

8.9 

12.2 

1.9 

-0.9 

5.9 

0.0 

-6.0 

9.8 

-5.7 

10.0 

1.8 

-4.8 

9.1 

5.7 

7.6 

8.5 

8.8 

6.3 

8.3 

10.9 

-7.8 

7.7 

15.5 

2.2 

34.0 

24.8 

2.3 

7.9 

10.4 

9.0 

11.0 

20.1 

15.4 

%Change 

04:4-05:4 

INCOME DATA 

Full Year 

2005 

Full Year 

2004 

4th Quarter 

%Change 2004

4th Quarter 

2005 

%Change 

04:4-05:4 

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

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

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

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

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

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

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

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

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

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

From international operations ............................................................................. 

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

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

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

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

$523,506 

204,918 

318,588 

29,628 

222,123 

317,200 

4,835 

64,758 

252 

134,211 

11,293 

31,579 

73,151 

61,060 

130,715 

$418,711 

123,975 

294,737 

28,947 

202,852 

295,504 

7,605 

58,626 

294 

122,410 

8,561 

32,019 

64,888 

57,522 

116,864 

25.0 $144,266 $115,517 

65.3 62,030 36,465 

8.1 82,236 79,052 

2.4 8,603 7,710 

9.5 55,600 55,228 

7.3 81,925 81,101 

-36.4 481 1,105 

10.5 15,235 15,430 

-14.3 332 69 

9.6 32,886 31,212 

31.9 3,667 -53 

-1.4 9,905 9,102 

12.7 18,682 18,397 

6.2 14,204 12,815 

11.9 32,235 30,488 

24.9 

70.1 

4.0 

11.6 

0.7 

1.0 

-56.4 

-1.3 

381.8 

5.4 

N/M 

8.8 

1.6 

10.8 

5.7 

** Call Report filers only. N/M - Not Meaningful 
TABLE III-A. Full Year 2005, All FDIC-Insured Institutions 

FULL YEAR 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,832 33 4 1,685 4,617 886 125 425 995 62 

Commercial banks ............................................... 7,527 30 4 1,680 4,186 202 96 376 907 46 

Savings institutions .............................................. 1,305 3 0 5 431 684 29 49 88 16 

Total assets (in billions) .......................................... $10,877.1 $358.2 $1,851.2 $142.3 $4,257.1 $1,655.1 $117.3 $47.7 $128.6 $2,319.5 

Commercial banks ............................................... 9,039.7 344.4 1,851.2 141.9 3,827.1 402.1 59.5 37.0 110.7 2,265.8 

Savings institutions .............................................. 1,837.4 13.9 0.0 0.4 430.1 1,252.9 57.7 10.7 18.0 53.8 

Total deposits (in billions) ....................................... 7,141.2 102.8 1,135.4 116.1 3,070.9 966.3 70.5 34.5 105.1 1,539.5 

Commercial banks ............................................... 6,073.3 100.4 1,135.4 115.7 2,812.2 247.9 35.4 27.1 90.9 1,508.3 

Savings institutions .............................................. 1,067.8 2.3 0.0 0.4 258.7 718.4 35.1 7.4 14.2 31.3 

Net income (in millions) .......................................... 134,211 10,385 15,563 1,747 55,559 16,761 1,760 1,012 1,368 30,057 

Commercial banks ............................................... 114,308 9,963 15,563 1,742 50,470 4,407 870 552 1,245 29,497 

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

Performance Ratios (%) 

19,904 422 0 5 5,089 12,353 889 461 123 561 

Yield on earning assets .......................................... 5.73 11.74 5.10 6.10 5.93 5.34 7.30 4.36 5.64 5.14 

Cost of funding earning assets ............................... 2.24 3.08 2.50 1.99 2.06 2.56 2.72 1.56 1.83 2.05 

Net interest margin .............................................. 3.49 8.66 2.60 4.11 3.87 2.79 4.58 2.80 3.80 3.09 

Noninterest income to assets ................................. 2.12 10.00 2.80 0.70 1.47 1.12 2.80 8.09 1.02 2.21 

Noninterest expense to assets ............................... 3.03 9.23 3.32 2.76 2.79 2.15 3.44 7.26 3.03 2.79 

Loan and lease loss provision to assets ................. 0.28 3.65 0.31 0.15 0.17 0.08 1.11 0.07 0.13 0.05 

Net operating income to assets .............................. 1.25 2.70 0.90 1.28 1.35 0.92 1.53 2.12 1.07 1.33 

Pretax return on assets .......................................... 1.90 4.52 1.26 1.57 1.97 1.68 2.42 3.31 1.37 2.03 

Return on assets .................................................... 1.28 2.92 0.86 1.27 1.36 1.07 1.56 2.19 1.09 1.35 

Return on equity ..................................................... 12.46 13.59 10.43 11.82 12.56 11.52 14.75 11.37 9.93 14.03 

Net charge-offs to loans and leases ....................... 0.49 4.64 0.87 0.18 0.23 0.12 1.44 0.26 0.23 0.24 

Loan and lease loss provision to net charge-offs ... 93.82 103.82 79.99 128.40 111.63 88.68 98.18 107.52 105.79 42.67 

Efficiency ratio ........................................................ 57.24 50.79 65.41 61.28 55.46 57.78 49.37 67.37 66.80 56.48 

% of unprofitable institutions .................................. 6.06 9.09 0.00 1.42 7.32 5.19 2.40 18.12 4.32 1.61 

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

Condition Ratios(%) 

64.46 45.45 75.00 60.06 74.07 47.86 56.80 46.35 52.46 46.77 

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

Loss allowance to: 

87.32 80.80 83.33 91.70 88.91 91.56 90.78 87.50 91.71 84.86 

Loans and leases ................................................ 1.15 4.23 1.40 1.38 1.15 0.49 1.56 1.43 1.26 0.89 

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

Noncurrent assets plus 

155.04 241.15 141.53 169.46 187.78 68.79 253.82 184.63 159.85 128.66 

other real estate owned to assets ....................... 0.50 1.33 0.46 0.61 0.48 0.56 0.51 0.24 0.54 0.39 

Equity capital ratio .................................................. 10.29 21.58 8.30 10.56 10.84 9.39 10.11 19.51 10.83 9.53 

Core capital (leverage) ratio ................................... 8.25 17.27 6.29 10.40 8.92 7.68 9.35 16.86 10.75 7.18 

Tier 1 risk-based capital ratio ................................. 10.66 15.34 8.27 14.35 10.67 12.61 11.55 38.69 17.94 9.50 

Total risk-based capital ratio .................................. 12.98 18.04 11.76 15.45 12.79 14.15 12.90 39.86 19.15 11.84 

Net loans and leases to deposits ........................... 92.96 253.07 72.04 78.45 93.79 123.14 130.21 31.01 67.11 79.65 

Net loans to total assets ......................................... 61.03 72.60 44.18 64.00 67.66 71.89 78.32 22.42 54.85 52.87 

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

Structural Changes 

57.19 26.13 31.81 81.58 69.55 58.03 59.28 70.30 81.74 55.72 

New Charters ...................................................... 179 1 0 2 45 10 0 117 4 0 

Institutions absorbed by mergers ........................ 315 2 0 20 216 18 1 7 9 42 

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

PRIOR FULL YEARS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 

Number of institutions ................................... 2004 8,976 34 5 1,731 4,424 990 132 466 1,119 75 

......................................... 2002 9,354 40 5 1,823 4,070 1,107 196 488 1,525 100 

......................................... 2000 9,904 56 7 1,977 3,954 1,266 288 512 1,755 89 

Total assets (in billions) ................................ 2004 $10,105.6 $382.7 $1,881.3 $138.7 $3,301.6 $1,503.6 $104.1 $52.0 $143.2 $2,598.4 

......................................... 2002 8,435.7 299.3 1,273.1 123.8 2,960.6 1,342.0 166.5 60.2 197.4 2,013.0 

......................................... 2000 7,462.9 295.1 1,229.5 120.4 3,823.3 1,000.2 87.8 50.8 205.4 650.5 

Return on assets (%) .................................... 2004 1.28 4.03 0.76 1.22 1.29 1.18 1.66 1.68 1.10 1.33 

......................................... 2002 1.30 3.60 0.74 1.24 1.30 1.31 1.35 1.08 1.14 1.33 

......................................... 2000 1.14 3.00 1.06 1.22 1.12 0.96 1.09 1.42 1.13 0.91 

Net charge-offs to loans & leases (%) .......... 2004 0.56 4.66 0.91 0.22 0.30 0.12 1.57 0.59 0.29 0.25 

......................................... 2002 0.97 6.12 1.77 0.29 0.65 0.20 1.07 1.36 0.35 0.81 

......................................... 2000 

Noncurrent assets plus 

0.59 3.72 0.51 0.23 0.50 0.11 0.49 1.62 0.28 0.62 

OREO to assets (%) .................................. 2004 0.53 1.50 0.57 0.68 0.51 0.43 0.53 0.31 0.59 0.45 

......................................... 2002 0.90 1.68 1.19 0.85 0.87 0.71 1.28 0.59 0.70 0.75 

......................................... 2000 0.71 1.56 0.66 0.69 0.76 0.48 1.11 0.22 0.57 0.58 

Equity capital ratio (%) .................................. 2004 10.29 20.56 8.05 10.78 10.10 10.55 11.36 17.47 10.79 10.23 

......................................... 2002 9.20 15.48 7.14 10.76 9.36 9.07 7.35 17.18 10.62 9.10 

......................................... 2000 8.49 12.25 6.73 10.43 8.66 8.28 7.94 16.15 10.30 7.90 

* See Table IV-A (page 8) for explanations. 
TABLE III-A. Full Year 2005, All FDIC-Insured Institutions 

FULL YEAR 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,832 3,863 4,339 512 118 1,110 1,227 1,874 2,070 1,790 761 

Commercial banks ............................................... 7,527 3,459 3,593 391 84 583 1,084 1,543 1,964 1,668 685 

Savings institutions .............................................. 1,305 404 746 121 34 527 143 331 106 122 76 

Total assets (in billions) .......................................... $10,877.1 $200.7 $1,247.6 $1,393.0 $8,035.8 $2,768.2 $2,683.7 $2,505.9 $803.6 $607.7 $1,507.9 

Commercial banks ............................................... 9,039.7 180.1 1,000.9 1,074.6 6,784.0 2,149.6 2,510.1 2,353.6 769.1 513.3 743.9 

Savings institutions .............................................. 1,837.4 20.6 246.7 318.3 1,251.8 618.6 173.6 152.3 34.5 94.3 764.0 

Total deposits (in billions) ....................................... 7,141.2 165.6 998.7 973.7 5,003.2 1,829.7 1,815.3 1,581.3 589.2 461.5 864.1 

Commercial banks ............................................... 6,073.3 149.7 813.7 754.4 4,355.5 1,429.9 1,703.1 1,473.6 566.7 407.4 492.6 

Savings institutions .............................................. 1,067.8 15.8 185.1 219.3 647.7 399.8 112.2 107.7 22.6 54.0 371.5 

Net income (in millions) .......................................... 134,211 1,940 14,701 16,983 100,587 32,895 35,107 24,287 12,463 6,774 22,685 

Commercial banks ............................................... 114,308 1,746 12,465 13,892 86,205 26,594 33,448 22,932 12,171 5,629 13,534 

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

Performance Ratios(%) 

19,904 194 2,236 3,091 14,382 6,301 1,660 1,355 292 1,145 9,151 

Yield on earning assets .......................................... 5.73 6.01 6.15 5.87 5.63 5.73 5.54 5.25 6.45 5.82 6.44 

Cost of funding earning assets ............................... 2.24 1.84 2.05 2.16 2.30 2.36 2.19 2.34 1.95 1.98 2.23 

Net interest margin .............................................. 3.49 4.17 4.10 3.71 3.33 3.37 3.35 2.92 4.49 3.84 4.21 

Noninterest income to assets ................................. 2.12 1.16 1.27 1.62 2.36 2.51 1.81 2.06 2.97 1.45 1.87 

Noninterest expense to assets ............................... 3.03 3.56 3.18 2.97 3.01 3.28 2.64 2.92 4.16 3.11 2.82 

Loan and lease loss provision to assets ................. 0.28 0.18 0.20 0.19 0.32 0.40 0.10 0.15 0.37 0.21 0.60 

Net operating income to assets .............................. 1.25 0.98 1.22 1.24 1.26 1.19 1.32 1.02 1.63 1.18 1.46 

Pretax return on assets .......................................... 1.90 1.29 1.69 1.91 1.95 1.80 2.03 1.46 2.37 1.59 2.51 

Return on assets .................................................... 1.28 1.00 1.24 1.28 1.30 1.22 1.36 0.99 1.62 1.19 1.61 

Return on equity ..................................................... 12.46 8.09 12.09 12.03 12.73 11.59 13.71 10.74 15.25 12.28 13.02 

Net charge-offs to loans and leases ....................... 0.49 0.19 0.19 0.24 0.60 0.80 0.23 0.33 0.56 0.24 0.70 

Loan and lease loss provision to net charge-offs ... 93.82 148.49 152.83 117.14 88.35 90.31 77.52 79.98 88.94 140.95 112.20 

Efficiency ratio ........................................................ 57.24 70.95 62.59 58.14 55.98 58.52 54.87 62.39 58.71 62.76 48.43 

% of unprofitable institutions ................................... 6.06 10.79 2.49 1.95 0.00 7.30 9.13 4.27 3.53 5.64 11.56 

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

Condition Ratios(%) 

64.46 58.22 68.77 73.83 69.49 58.29 76.53 59.61 59.42 65.59 77.00 

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

Loss Allowance to: 

87.32 91.84 91.69 90.72 85.93 86.86 86.49 86.34 86.52 89.22 90.90 

Loans and leases ................................................ 1.15 1.33 1.21 1.15 1.14 1.31 0.97 1.16 1.24 1.19 1.14 

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

Noncurrent assets plus 

155.04 149.99 191.53 195.84 144.20 173.47 223.97 134.00 110.56 117.43 153.88 

other real estate owned to assets ........................ 0.50 0.68 0.52 0.44 0.50 0.44 0.30 0.54 0.86 0.73 0.60 

Equity capital ratio .................................................. 10.29 12.17 10.21 10.68 10.18 10.54 9.80 9.23 10.45 10.17 12.41 

Core capital (leverage) ratio ................................... 8.25 12.21 9.85 9.24 7.72 8.31 7.32 7.33 8.83 8.64 10.86 

Tier 1 risk-based capital ratio ................................. 10.66 18.20 13.50 12.35 9.80 11.54 9.24 9.03 10.68 12.10 14.10 

Total risk-based capital ratio ................................... 12.98 19.28 14.65 13.69 12.48 14.19 11.40 11.75 12.89 13.39 15.90 

Net loans and leases to deposits ............................ 92.96 74.94 84.08 93.65 95.20 83.85 89.01 89.54 96.30 80.01 131.48 

Net loans to total assets ......................................... 61.03 61.81 67.31 65.46 59.27 55.42 60.21 56.50 70.61 60.76 75.34 

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

Structural Changes 

57.19 82.47 79.93 69.18 50.95 48.58 61.08 54.22 70.32 75.34 56.70 

New Charters ....................................................... 179 164 10 4 1 27 47 22 19 20 44 

Institutions absorbed by mergers ........................ 315 118 164 23 10 46 38 89 54 56 32 

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

PRIOR FULL YEARS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

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

......................................... 2002 9,354 4,680 4,118 450 106 1,212 1,237 2,055 2,167 1,901 782 

......................................... 2000 9,904 5,464 3,898 437 105 1,292 1,307 2,197 2,268 2,014 826 

Total assets (in billions) ................................ 2004 $10,105.6 $211.7 $1,199.6 $1,317.0 $7,377.3 $2,855.0 $2,177.1 $2,387.6 $768.2 $603.1 $1,314.7 

......................................... 2002 8,435.7 237.8 1,124.9 1,279.1 5,793.9 2,892.6 1,711.1 1,572.0 440.1 581.5 1,238.3 

......................................... 2000 7,462.9 262.1 1,018.5 1,199.1 4,983.2 2,580.7 1,570.8 1,255.4 461.9 561.2 1,032.9 

Return on assets (%) .................................... 2004 1.28 1.00 1.19 1.45 1.28 1.37 1.35 0.88 1.55 1.26 1.61 

......................................... 2002 1.30 0.99 1.16 1.44 1.31 1.11 1.34 1.28 1.58 1.41 1.58 

......................................... 2000 1.14 0.95 1.15 1.20 1.14 1.23 1.02 1.02 1.33 1.04 1.23 

Net charge-offs to loans & leases (%) .......... 2004 0.56 0.28 0.27 0.39 0.65 0.88 0.31 0.41 0.74 0.27 0.60 

......................................... 2002 0.97 0.32 0.41 0.69 1.18 1.45 0.71 0.77 1.19 0.44 0.81 

......................................... 2000 

Noncurrent assets plus 

0.59 0.37 0.27 0.59 0.67 0.67 0.61 0.39 0.76 0.37 0.67 

OREO to assets (%) .................................. 2004 0.53 0.74 0.56 0.51 0.53 0.58 0.35 0.55 0.81 0.61 0.51 

......................................... 2002 0.90 0.85 0.74 0.69 0.98 1.01 0.78 1.00 0.82 0.81 0.74 

......................................... 2000 0.71 0.66 0.59 0.67 0.75 0.71 0.82 0.74 0.62 0.66 0.62 

Equity capital ratio (%) .................................. 2004 10.29 11.82 10.19 10.89 10.15 11.21 8.74 9.36 10.62 10.78 12.10 

......................................... 2002 9.20 11.28 10.06 10.06 8.76 8.85 9.37 8.57 10.34 9.60 9.98 

......................................... 2000 8.49 11.33 9.82 8.94 7.96 8.31 8.61 7.98 9.48 8.78 8.75 

* See Table IV-A (page 9) for explanations. 
TABLE IV-A. Fourth Quarter 2005, All FDIC-Insured Institutions 

FOURTH QUARTER 

(The way it is...) 

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

All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

8,832 33 4 1,685 4,617 886 125 425 995 62 

Commercial banks ............................................... 7,527 30 4 1,680 4,186 202 96 376 907 46 

Savings institutions .............................................. 1,305 3 0 5 431 684 29 49 88 16 

Total assets (in billions) .......................................... $10,877.1 $358.2 $1,851.2 $142.3 $4,257.1 $1,655.1 $117.3 $47.7 $128.6 $2,319.5 

Commercial banks ............................................... 9,039.7 344.4 1,851.2 141.9 3,827.1 402.1 59.5 37.0 110.7 2,265.8 

Savings institutions .............................................. 1,837.4 13.9 0.0 0.4 430.1 1,252.9 57.7 10.7 18.0 53.8 

Total deposits (in billions) ....................................... 7,141.2 102.8 1,135.4 116.1 3,070.9 966.3 70.5 34.5 105.1 1,539.5 

Commercial banks ............................................... 6,073.3 100.4 1,135.4 115.7 2,812.2 247.9 35.4 27.1 90.9 1,508.3 

Savings institutions .............................................. 1,067.8 2.3 0.0 0.4 258.7 718.4 35.1 7.4 14.2 31.3 

Net income (in millions) .......................................... 32,886 1,963 3,664 395 13,962 4,199 396 442 307 7,557 

Commercial banks ............................................... 27,709 1,781 3,664 394 12,752 1,066 208 129 283 7,432 

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

Performance Ratios(annualized, %) 

5,177 182 0 1 1,210 3,133 188 314 24 125 

Yield on earning assets .......................................... 6.13 12.40 5.47 6.41 6.34 5.74 7.47 4.78 5.87 5.59 

Cost of funding earning assets ............................... 2.64 3.52 2.89 2.27 2.42 2.99 2.98 1.86 2.07 2.50 

Net interest margin .............................................. 3.49 8.88 2.58 4.14 3.91 2.74 4.49 2.92 3.80 3.09 

Noninterest income to assets ................................. 2.06 9.61 2.60 0.71 1.44 1.12 2.74 10.98 0.98 2.21 

Noninterest expense to assets ............................... 3.04 9.47 3.15 2.94 2.85 2.18 3.49 7.69 3.11 2.82 

Loan and lease loss provision to assets ................. 0.32 4.47 0.30 0.17 0.19 0.10 1.22 0.11 0.17 0.07 

Net operating income to assets .............................. 1.20 1.93 0.87 1.14 1.32 0.86 1.37 3.63 0.96 1.33 

Pretax return on assets .......................................... 1.79 3.28 1.17 1.39 1.89 1.62 2.09 5.89 1.20 1.94 

Return on assets .................................................... 1.22 2.23 0.79 1.13 1.32 1.03 1.36 3.78 0.96 1.32 

Return on equity ..................................................... 11.90 10.24 9.61 10.53 12.22 11.06 13.43 19.36 8.82 13.88 

Net charge-offs to loans and leases ....................... 0.60 6.17 0.86 0.25 0.29 0.19 1.67 0.36 0.30 0.30 

Loan and lease loss provision to net charge-offs ... 86.86 96.43 79.73 103.56 97.23 69.32 93.41 124.24 101.73 40.97 

Efficiency ratio ........................................................ 58.02 52.99 64.84 64.63 56.63 59.03 51.03 55.58 69.17 57.08 

% of unprofitable institutions .................................. 9.42 9.09 0.00 8.55 8.21 10.84 12.80 24.24 8.84 4.84 

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

Structural Changes 

58.53 39.39 75.00 55.49 66.30 40.86 56.80 42.59 51.46 50.00 

New Charters ...................................................... 57 1 0 1 12 1 0 39 3 0 

Institutions absorbed by mergers ........................ 81 0 0 5 58 4 1 2 3 8 

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

PRIOR FOURTH QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 

Return on assets (%) ................................... 2004 1.25 3.72 0.77 1.06 1.25 1.22 1.50 1.74 0.99 1.27 

......................................... 2002 1.21 3.74 0.43 1.02 1.28 1.36 1.41 -0.80 1.02 1.22 

......................................... 2000 1.09 3.21 0.93 0.96 1.09 0.86 1.01 1.22 0.99 0.85 

Net charge-offs to loans & leases (%) ......... 2004 0.60 4.65 1.10 0.31 0.35 0.15 1.44 0.54 0.36 0.24 

......................................... 2002 0.98 5.36 1.73 0.45 0.65 0.29 1.15 2.33 0.49 0.90 

......................................... 2000 0.81 3.93 0.68 0.39 0.78 0.13 0.92 0.50 0.37 0.69 

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

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

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

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

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

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

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

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

Other Specialized < $1 Billion - Institutions with assets less than $1 billion, whose loans and leases are less than 40 persent 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. 
TABLE IV-A. Fourth Quarter 2005, All FDIC-Insured Institutions 

FOURTH QUARTER 

(The way it is...) 

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

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than $100 

Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

8,832 3,863 4,339 512 118 1,110 1,227 1,874 2,070 1,790 761 

Commercial banks ............................................... 7,527 3,459 3,593 391 84 583 1,084 1,543 1,964 1,668 685 

Savings institutions .............................................. 1,305 404 746 121 34 527 143 331 106 122 76 

Total assets (in billions) .......................................... $10,877.1 $200.7 $1,247.6 $1,393.0 $8,035.8 $2,768.2 $2,683.7 $2,505.9 $803.6 $607.7 $1,507.9 

Commercial banks ............................................... 9,039.7 180.1 1,000.9 1,074.6 6,784.0 2,149.6 2,510.1 2,353.6 769.1 513.3 743.9 

Savings institutions .............................................. 1,837.4 20.6 246.7 318.3 1,251.8 618.6 173.6 152.3 34.5 94.3 764.0 

Total deposits (in billions) ....................................... 7,141.2 165.6 998.7 973.7 5,003.2 1,829.7 1,815.3 1,581.3 589.2 461.5 864.1 

Commercial banks ............................................... 6,073.3 149.7 813.7 754.4 4,355.5 1,429.9 1,703.1 1,473.6 566.7 407.4 492.6 

Savings institutions .............................................. 1,067.8 15.8 185.1 219.3 647.7 399.8 112.2 107.7 22.6 54.0 371.5 

Net income (in millions) .......................................... 32,886 414 3,877 4,090 24,505 7,689 8,710 5,993 2,955 1,651 5,889 

Commercial banks ............................................... 27,709 374 3,157 3,360 20,818 6,209 8,285 5,500 2,884 1,415 3,416 

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

Performance Ratios(annualized, %) 

5,177 40 721 730 3,686 1,481 424 492 71 235 2,473 

Yield on earning assets .......................................... 6.13 6.35 6.50 6.24 6.04 6.06 5.95 5.59 6.89 6.28 6.97 

Cost of funding earning assets ............................... 2.64 2.11 2.35 2.53 2.72 2.74 2.58 2.72 2.35 2.34 2.67 

Net interest margin .............................................. 3.49 4.24 4.16 3.71 3.33 3.32 3.38 2.87 4.54 3.94 4.30 

Noninterest income to assets ................................. 2.06 1.22 1.34 1.55 2.29 2.45 1.79 2.00 2.75 1.44 1.83 

Noninterest expense to assets ............................... 3.04 3.83 3.21 2.97 3.01 3.31 2.70 2.77 4.24 3.21 2.91 

Loan and lease loss provision to assets ................. 0.32 0.22 0.23 0.22 0.35 0.42 0.13 0.20 0.31 0.24 0.72 

Net operating income to assets .............................. 1.20 0.83 1.25 1.19 1.20 1.11 1.28 1.02 1.54 1.13 1.36 

Pretax return on assets .......................................... 1.79 1.07 1.72 1.73 1.82 1.62 1.91 1.41 2.09 1.48 2.47 

Return on assets .................................................... 1.22 0.83 1.26 1.19 1.23 1.12 1.31 0.96 1.50 1.11 1.60 

Return on equity ..................................................... 11.90 6.77 12.30 11.17 12.12 10.58 13.32 10.42 14.17 11.23 13.00 

Net charge-offs to loans and leases ....................... 0.60 0.29 0.26 0.28 0.73 0.89 0.26 0.44 0.61 0.33 0.95 

Loan and lease loss provision to net charge-offs ... 86.86 118.95 130.93 118.53 81.42 83.68 83.33 78.89 69.60 116.72 99.19 

Efficiency ratio ........................................................ 58.02 74.67 61.88 58.99 56.85 60.22 56.15 60.50 61.49 63.82 49.54 

% of unprofitable institutions ................................... 9.42 16.15 4.24 4.30 1.69 9.82 9.62 8.27 9.03 10.11 10.78 

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

Structural Changes 

58.53 53.43 62.06 65.23 66.10 50.45 72.05 52.99 53.77 61.06 69.12 

New Charters ....................................................... 57 54 3 0 0 10 15 4 9 5 14 

Institutions absorbed by mergers ........................ 81 35 43 1 2 13 6 17 15 20 10 

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

PRIOR FOURTH QUARTERS 

(The way it was...) 

0 0 0 0 0 0 0 0 0 0 0 

Return on assets (%) ................................... 2004 1.25 0.89 1.14 1.37 1.26 1.38 1.21 0.85 1.66 1.18 1.59 

......................................... 2002 1.21 0.84 0.99 1.47 1.21 0.94 1.27 1.14 1.57 1.36 1.66 

......................................... 2000 1.09 0.74 1.05 1.02 1.14 1.22 1.03 0.93 1.26 0.89 1.10 

Net charge-offs to loans & leases (%) .......... 2004 0.60 0.39 0.34 0.45 0.69 0.88 0.33 0.59 0.70 0.34 0.59 

......................................... 2002 0.98 0.47 0.53 0.66 1.17 1.36 0.81 0.79 1.18 0.55 0.86 

......................................... 2000 0.81 0.41 0.37 0.75 0.94 0.79 1.16 0.53 0.85 0.53 0.77 

* Regions: 

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

Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

San Francisco - Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Pacific Islands, Utah, Washington, Wyoming 
TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

December 31, 2005 All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ........................................ 0.80 4.68 1.01 1.08 0.70 0.82 1.31 1.10 1.33 0.86 

Construction and development ...................................... 0.66 0.00 1.43 0.90 0.61 0.96 0.49 0.42 0.90 0.78 

Commercial real estate .................................................. 0.50 0.00 0.86 1.06 0.48 0.38 0.39 0.74 0.99 0.43 

Multifamily residential real estate .................................. 0.35 0.00 0.84 0.48 0.40 0.15 0.12 0.63 0.60 0.54 

Home equity loans ......................................................... 0.53 3.88 0.62 0.71 0.45 0.50 0.37 0.77 0.64 0.62 

Other 1-4 family residential ............................................ 1.06 5.38 1.13 1.75 1.13 0.93 1.87 1.42 1.67 1.09 

Commercial and industrial loans ...................................... 0.70 2.28 0.86 1.24 0.69 0.71 0.96 1.03 1.37 0.45 

Loans to individuals .......................................................... 1.68 1.98 1.75 2.25 1.58 1.12 1.54 1.97 2.19 1.38 

Credit card loans ........................................................... 1.96 2.03 2.01 2.28 1.91 1.49 1.20 2.50 1.85 1.89 

Other loans to individuals .............................................. 1.47 1.43 1.58 2.24 1.54 0.99 1.64 1.91 2.20 1.27 

All other loans and leases (including farm) ....................... 0.40 0.50 0.33 0.57 0.52 0.72 0.50 0.55 0.66 0.32 

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

Percent of Loans Noncurrent** 

0.87 1.99 1.00 1.06 0.75 0.83 1.40 1.21 1.41 0.78 

All real estate loans .......................................................... 0.71 1.54 1.13 0.78 0.61 0.72 0.41 0.83 0.77 0.83 

Construction and development ...................................... 0.38 0.00 1.12 0.56 0.35 0.56 0.24 1.10 0.61 0.37 

Commercial real estate .................................................. 0.59 0.00 1.07 1.11 0.56 0.56 0.49 0.81 1.00 0.60 

Multifamily residential real estate .................................. 0.25 0.00 0.48 0.69 0.25 0.13 0.00 0.25 0.69 0.58 

Home equity loans ......................................................... 0.24 1.38 0.27 0.20 0.22 0.24 0.06 0.13 0.24 0.26 

Other 1-4 family residential ............................................ 0.97 1.68 1.50 0.80 0.98 0.83 0.54 0.88 0.73 1.16 

Commercial and industrial loans ...................................... 0.76 1.23 1.03 1.32 0.66 0.88 0.69 0.88 1.20 0.67 

Loans to individuals .......................................................... 1.13 1.80 1.47 0.81 0.72 0.49 0.72 0.66 0.68 0.55 

Credit card loans ........................................................... 1.73 1.84 1.79 2.15 1.41 1.09 1.03 0.68 1.49 1.47 

Other loans to individuals .............................................. 0.71 1.37 1.25 0.72 0.64 0.27 0.64 0.66 0.65 0.36 

All other loans and leases (including farm) ....................... 0.29 0.08 0.24 0.61 0.39 0.63 0.32 0.38 0.54 0.19 

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

Percent of Loans Charged-off (net, YTD) 

0.74 1.75 0.99 0.82 0.61 0.71 0.62 0.78 0.79 0.69 

All real estate loans .......................................................... 0.05 0.20 0.09 0.04 0.07 0.03 0.08 0.05 0.05 0.04 

Construction and development ...................................... 0.03 0.00 0.04 0.03 0.03 0.02 -0.05 0.09 0.02 0.00 

Commercial real estate .................................................. 0.05 9.18 0.10 0.06 0.06 0.02 0.10 0.05 0.07 0.02 

Multifamily residential real estate .................................. 0.02 0.00 0.31 0.07 0.03 -0.01 -0.21 0.44 0.11 0.00 

Home equity loans ......................................................... 0.09 0.23 0.10 0.04 0.11 0.05 0.05 0.07 0.05 0.08 

Other 1-4 family residential ............................................ 0.05 0.01 0.07 0.07 0.09 0.04 0.11 0.04 0.06 0.03 

Commercial and industrial loans ...................................... 0.32 2.76 0.04 0.51 0.40 0.23 2.72 0.40 0.47 0.14 

Loans to individuals .......................................................... 2.72 5.03 3.32 0.88 1.03 1.72 1.97 0.69 0.91 1.25 

Credit card loans ........................................................... 4.74 5.16 4.07 5.44 3.96 6.04 4.38 0.44 5.57 3.58 

Other loans to individuals .............................................. 1.35 3.46 2.81 0.57 0.73 0.92 1.24 0.72 0.70 0.76 

All other loans and leases (including farm) ....................... 0.23 0.02 -0.03 0.00 0.40 1.28 0.24 0.82 0.00 0.36 

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

Loans Outstanding (in billions) 

0.50 4.60 0.90 0.20 0.20 0.10 1.40 0.30 0.20 0.20 

All real estate loans .......................................................... $4,141.8 $2.2 $238.7 $50.7 $1,957.0 $1,096.3 $28.5 $6.9 $50.2 $711.4 

Construction and development ...................................... 448.7 0.0 6.9 4.1 355.2 27.7 0.9 0.6 3.2 50.2 

Commercial real estate .................................................. 824.0 0.0 18.9 13.1 623.8 48.8 2.5 1.8 12.2 102.9 

Multifamily residential real estate .................................. 188.1 0.0 2.2 0.9 117.6 51.3 0.3 0.2 0.8 14.8 

Home equity loans ......................................................... 534.3 1.0 65.1 0.9 209.2 113.7 6.8 0.2 2.1 135.4 

Other 1-4 family residential ............................................ 2,046.3 1.2 106.0 14.4 622.1 853.9 18.0 3.9 28.5 398.3 

Commercial and industrial loans ...................................... 1,085.8 9.0 205.1 12.9 586.6 34.3 8.0 1.3 7.6 221.0 

Loans to individuals .......................................................... 947.9 256.1 205.0 6.6 209.6 57.8 55.0 1.9 9.4 146.5 

Credit card loans ........................................................... 395.2 236.9 82.6 0.4 21.8 15.2 12.2 0.2 0.3 25.6 

Other loans to individuals .............................................. 552.7 19.2 122.3 6.2 187.8 42.6 42.8 1.7 9.1 120.9 

All other loans and leases (including farm) ....................... 543.7 4.4 182.1 22.2 162.3 7.4 1.8 0.7 4.4 158.4 

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

Memo: Other Real Estate Owned (in millions) 

6,719.2 271.6 830.8 92.4 2,915.5 1,195.8 93.4 10.9 71.5 1,237.4 

All other real estate owned ............................................... 4,080.7 -1.7 187.1 114.8 2,442.2 764.4 27.5 23.5 127.6 395.2 

Construction and development ...................................... 391.4 0.0 0.0 4.8 312.5 45.3 0.5 2.3 10.2 15.9 

Commercial real estate .................................................. 1,460.1 0.1 9.0 48.8 1,188.3 65.8 5.9 11.8 50.5 79.9 

Multifamily residential real estate .................................. 94.2 0.0 0.0 4.5 55.6 5.3 0.0 2.4 10.2 16.2 

1-4 family residential ...................................................... 2,012.7 0.2 126.1 35.4 859.3 647.0 20.6 6.2 52.6 265.2 

Farmland ........................................................................ 61.1 0.0 0.0 21.3 28.6 1.1 0.7 0.8 4.1 4.6 

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

** Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or that are in nonaccrual status.
 
TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

December 31, 2005 

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate .............................. 0.80 1.28 0.78 0.63 0.83 0.77 0.69 0.93 0.89 1.12 0.70 

Construction and development ............................ 0.66 0.87 0.64 0.70 0.65 0.77 0.52 0.77 0.89 0.65 0.63 

Commercial real estate ........................................ 0.50 0.96 0.58 0.45 0.44 0.50 0.39 0.63 0.49 0.68 0.36 

Multifamily residential real estate ........................ 0.35 0.71 0.46 0.32 0.33 0.31 0.18 0.95 0.47 0.62 0.12 

Home equity loans ............................................... 0.53 0.77 0.57 0.49 0.53 0.46 0.48 0.56 0.82 0.53 0.41 

Other 1-4 family residential .................................. 1.06 1.84 1.16 0.84 1.06 0.92 0.97 1.29 1.16 1.99 0.90 

Commercial and industrial loans ............................ 0.70 1.30 0.91 0.80 0.64 0.90 0.53 0.63 0.67 0.84 0.74 

Loans to individuals ................................................ 1.68 2.53 1.88 1.53 1.66 1.81 1.60 1.29 2.01 1.48 1.77 

Credit card loans ................................................. 1.96 2.43 3.29 1.40 1.97 1.93 2.07 1.56 2.51 0.73 2.03 

Other loans to individuals .................................... 1.47 2.53 1.72 1.56 1.40 1.68 1.51 1.20 1.50 1.68 1.31 

All other loans and leases (including farm) ............. 0.40 0.63 0.55 0.53 0.38 0.33 0.31 0.59 0.32 0.75 0.46 

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

Percent of Loans Noncurrent** 

0.87 1.33 0.86 0.73 0.89 0.96 0.71 0.88 0.96 1.10 0.87 

All real estate loans ................................................ 0.71 0.81 0.57 0.55 0.78 0.55 0.40 0.98 1.26 1.11 0.63 

Construction and development ............................ 0.38 0.60 0.45 0.35 0.35 0.51 0.24 0.53 0.40 0.51 0.28 

Commercial real estate ........................................ 0.59 0.88 0.62 0.60 0.56 0.55 0.44 0.85 0.68 0.73 0.41 

Multifamily residential real estate ........................ 0.25 0.54 0.37 0.27 0.21 0.18 0.39 0.50 0.36 0.78 0.07 

Home equity loans ............................................... 0.24 0.27 0.21 0.25 0.24 0.14 0.20 0.32 0.36 0.19 0.16 

Other 1-4 family residential .................................. 0.97 0.94 0.66 0.70 1.06 0.57 0.49 1.51 2.20 2.03 0.87 

Commercial and industrial loans ............................ 0.76 1.29 0.96 0.83 0.71 0.83 0.47 0.90 0.71 0.96 0.79 

Loans to individuals ................................................ 1.13 0.90 0.73 0.53 1.22 1.47 0.83 0.62 1.45 0.54 1.24 

Credit card loans ................................................. 1.73 1.08 2.12 1.01 1.75 1.79 1.45 1.30 2.33 0.56 1.72 

Other loans to individuals .................................... 0.71 0.90 0.58 0.38 0.76 1.16 0.72 0.38 0.56 0.54 0.42 

All other loans and leases (including farm) ............. 0.29 0.77 0.52 0.55 0.24 0.21 0.19 0.43 0.36 0.73 0.32 

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

Percent of Loans Charged-off (net, YTD) 

0.74 0.89 0.63 0.59 0.79 0.75 0.43 0.87 1.12 1.01 0.74 

All real estate loans ................................................ 0.05 0.06 0.05 0.06 0.05 0.04 0.04 0.11 0.06 0.07 0.03 

Construction and development ............................ 0.03 0.06 0.03 0.03 0.01 0.02 0.03 0.04 0.02 0.04 0.00 

Commercial real estate ........................................ 0.05 0.07 0.05 0.08 0.04 0.03 0.03 0.11 0.05 0.06 0.02 

Multifamily residential real estate ........................ 0.02 0.10 0.04 0.03 0.01 0.01 0.05 0.04 0.04 0.10 0.00 

Home equity loans ............................................... 0.09 0.05 0.05 0.08 0.09 0.02 0.07 0.15 0.13 0.09 0.02 

Other 1-4 family residential .................................. 0.05 0.07 0.05 0.05 0.05 0.04 0.04 0.12 0.04 0.09 0.04 

Commercial and industrial loans ............................ 0.32 0.48 0.47 0.49 0.26 0.17 0.24 0.22 0.47 0.43 0.88 

Loans to individuals ................................................ 2.72 0.76 1.30 1.32 2.98 3.52 1.35 1.55 3.00 0.98 3.89 

Credit card loans ................................................. 4.74 1.72 6.32 3.00 4.80 4.45 4.52 4.04 5.01 2.00 5.65 

Other loans to individuals .................................... 1.35 0.74 0.76 0.82 1.50 2.63 0.73 0.78 0.80 0.70 1.06 

All other loans and leases (including farm) ............. 0.23 0.13 0.23 0.33 0.23 0.07 0.40 0.30 0.12 0.33 0.16 

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

Loans Outstanding (in billions) 

0.50 0.20 0.20 0.20 0.60 0.80 0.20 0.30 0.60 0.20 0.70 

All real estate loans ................................................ $4,141.8 $83.3 $653.1 $669.3 $2,736.2 $804.1 $1,083.6 $825.4 $355.5 $254.2 $819.0 

Construction and development ............................ 448.7 9.7 116.4 113.9 208.6 50.6 147.2 95.3 38.9 54.1 62.5 

Commercial real estate ........................................ 824.0 23.6 226.1 204.4 370.0 161.7 211.6 175.8 75.6 79.5 120.0 

Multifamily residential real estate ........................ 188.1 1.9 26.7 44.8 114.8 49.6 24.4 31.5 8.5 6.1 68.0 

Home equity loans ............................................... 534.3 3.0 35.4 49.0 446.9 65.9 169.1 156.5 59.0 16.7 67.0 

Other 1-4 family residential .................................. 2,046.3 35.4 226.2 247.9 1,536.8 434.4 515.0 353.5 157.8 89.5 496.2 

Commercial and industrial loans ............................ 1,085.8 18.3 112.1 139.8 815.5 253.7 258.7 300.7 86.9 64.7 121.1 

Loans to individuals ................................................ 947.9 11.2 53.1 76.1 807.4 324.3 145.5 175.1 80.7 38.9 183.4 

Credit card loans ................................................. 395.2 0.2 5.2 17.8 372.0 161.5 23.4 45.1 40.7 8.2 116.2 

Other loans to individuals .................................... 552.7 11.0 47.9 58.3 435.4 162.8 122.1 129.9 40.1 30.7 67.1 

All other loans and leases (including farm) ............. 543.7 13.0 32.2 37.9 460.6 174.0 144.3 131.5 51.5 16.1 26.3 

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

Memo: Other Real Estate Owned (in millions) 

6,719.2 125.8 850.6 923.1 4,819.7 1,556.2 1,632.1 1,432.7 574.6 373.9 1,149.7 

All other real estate owned ..................................... 4,080.7 246.0 1,138.6 610.3 2,085.8 430.0 1,008.1 1,097.5 426.4 640.2 478.5 

Construction and development ............................ 391.4 25.1 170.2 91.6 104.4 17.1 113.1 73.1 41.8 109.7 36.5 

Commercial real estate ........................................ 1,460.1 100.4 524.6 263.8 571.2 119.1 486.9 307.9 154.3 278.4 113.5 

Multifamily residential real estate ........................ 94.2 6.5 53.3 18.7 15.7 2.6 17.3 24.0 11.7 31.0 7.5 

1-4 family residential ............................................ 2,012.7 98.3 358.4 229.8 1,326.2 232.0 381.8 687.2 200.8 198.5 312.3 

Farmland .............................................................. 61.1 15.9 32.4 6.9 6.0 1.1 4.3 5.6 18.3 22.7 9.1 

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

(dollar figures in millions; 

notional amounts unless otherwise indicated) 

4th Quarter 

2005 

3rd Quarter 

2005 

2nd Quarter 

2005 

1st Quarter 

2005 

4th Quarter 

2004 

%Change 

04:4-05:4 

Asset Size Distribution 

Less Than 

$100 Million 

$100 Million 

To 

$1 Billion 

$1 Billion 

To 

$10 Billion 

Greater 

Than 

$10 Billion 

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives ................................. 920 900 858 781 764 20.4 73 535 228 84 

Total assets of institutions reporting derivatives ........................... $7,710,829 $7,599,459 $7,431,799 $7,270,002 $7,109,151 8.5 $4,970 $221,094 $743,422 $6,741,343 

Total deposits of institutions reporting derivatives ........................ 5,090,585 4,955,880 4,831,249 4,713,734 4,609,011 10.4 4,006 173,926 538,831 4,373,822 

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

Derivative Contracts by Underlying Risk Exposure 

101,919,367 99,595,515 96,943,654 91,861,153 88,305,599 15.4 347 9,286 101,973 101,807,761 

Interest rate .......................................................................... 84,531,195 82,895,357 81,860,958 77,989,806 75,531,881 11.9 254 8,888 87,322 84,434,731 

Foreign exchange* ............................................................... 9,712,788 9,725,003 9,383,991 9,251,143 9,026,107 7.6 60 20 4,773 9,707,934 

Equity ................................................................................. 1,255,255 1,343,257 1,194,866 1,174,583 1,112,283 12.9 33 317 1,600 1,253,305 

Commodity & other (excluding credit derivatives) ........................ 598,125 538,213 398,589 321,361 288,606 107.2 0 4 4,214 593,906 

Credit ................................................................................ 5,822,004 5,093,684 4,105,250 3,124,260 2,346,722 148.1 0 56 4,064 5,817,884 

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

Derivative Contracts by Transaction Type 

101,919,367 99,595,515 96,943,654 91,861,153 88,305,599 15.4 347 9,286 101,973 101,807,761 

Swaps ................................................................................ 64,746,300 62,135,043 60,921,671 58,335,659 56,416,576 14.8 46 3,769 60,512 64,681,972 

Futures & forwards .............................................................. 12,050,348 11,928,478 11,919,720 11,634,985 11,370,492 6.0 93 1,802 24,927 12,023,526 

Purchased options ................................................................. 9,419,432 9,796,462 9,428,221 8,785,659 8,873,344 6.2 9 2,046 6,048 9,411,329 

Written options .................................................................... 9,451,176 9,841,334 9,837,801 9,242,869 8,879,583 6.4 199 1,602 6,165 9,443,209 

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

Fair Value of Derivative Contracts 

95,667,256 93,701,316 92,107,413 87,999,172 85,539,995 11.8 347 9,220 97,652 95,560,036 

Interest rate contacts .............................................................. 21,607 22,432 20,913 28,403 26,867 -19.6 8 -31 -183 21,814 

Foreign exchange contacts ................................................... 2,635 73 828 1,415 -1,379 -291.1 0 0 11 2,625 

Equity contracts .................................................................... -10,451 -5,130 -2,268 -1,521 -1,308 N/M 1 2 7 -10,461 

Commodity & other (excluding credit derivatives) ........................ 2,097 3,856 1,257 3,551 1,941 8.0 0 0 6 2,091 

Credit derivatives as guarantor ................................................ -1,997 -368 -847 6,821 15,680 N/M 0 0 0 -1,998 

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

Derivative Contracts by Maturity** 

1,973 1,876 2,514 -5,937 -15,124 N/M 0 -1 -9 1,983 

Interest rate contracts ............................................... < 1 year 18,483,380 16,642,441 17,138,062 15,560,325 15,919,803 16.1 30 2,455 15,120 18,465,775

 ............................ 1-5 years 27,683,385 27,693,826 26,722,873 26,568,782 25,893,298 6.9 29 4,061 28,534 27,650,761

 ............................ > 5 years 19,826,222 18,865,701 18,113,546 17,381,274 16,491,764 20.2 7 768 24,347 19,801,100 

Foreign exchange contracts ...................................... < 1 year 5,681,626 5,437,648 5,318,532 5,192,310 5,348,729 6.2 60 10 3,264 5,678,292

 ............................ 1-5 years 1,354,036 1,355,674 1,313,066 1,314,144 1,286,372 5.3 0 0 159 1,353,877

 ............................ > 5 years 687,179 687,274 684,755 691,433 760,131 -9.6 0 0 0 687,179 

Equity contracts ....................................................... < 1 year 321,031 342,345 342,334 275,704 272,658 17.7 3 42 182 320,804

 ............................ 1-5 years 1,427,663 1,097,572 952,801 892,602 735,736 94.0 16 121 511 1,427,015

 ............................ > 5 years 383,115 268,326 166,107 173,442 139,858 173.9 0 3 36 383,076 

Commodity & other contracts ..................................... < 1 year 215,143 182,218 154,314 128,653 107,032 101.0 0 1 16 215,126

 ............................ 1-5 years 742,276 647,773 480,423 299,126 237,581 212.4 0 3 15 742,258

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

Risk-Based Capital: Credit Equivalent Amount 

176,858 163,351 81,626 55,119 42,450 316.6 0 0 0 176,858 

Total current exposure to tier 1 capital (%) ................................. 34.2 38.7 37.6 38.5 44.0 0.3 0.2 0.6 40.0 

Total potential future exposure to tier 1 capital (%) ..................... 81.2 73.6 76.5 80.5 76.3 0.4 1.0 1.0 95.1 

Total exposure (credit equivalent amount) to tier 1 capital (%) ...... 115.4 112.3 114.1 119.0 120.4 0.8 1.2 1.5 135.1 

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

HELD FOR TRADING 

8.0 23.0 14.0 1.0 5.0 60.0 0.0 0.0 0.0 8.0 

Number of institutions reporting derivatives ................................. 134 128 120 121 117 14.5 7 34 40 53 

Total assets of institutions reporting derivatives ........................... 6,193,403 6,095,314 5,911,924 5,874,460 5,687,915 8.9 371 14,368 169,144 6,009,520 

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

Derivative Contracts by Underlying Risk Exposure 

4,048,984 3,924,223 3,795,345 3,765,359 3,689,919 9.7 301 11,102 119,516 3,918,065 

Interest rate .......................................................................... 82,007,467 80,439,162 79,451,914 75,576,677 73,012,099 12.3 3 109 22,892 81,984,463 

Foreign exchange ................................................................. 9,185,868 8,822,150 8,554,016 8,412,594 8,506,865 8.0 0 10 3,832 9,182,025 

Equity ................................................................................ 1,251,184 1,339,268 1,192,086 1,170,944 1,109,519 12.8 0 32 167 1,250,985 

Commodity & other .............................................................. 593,933 534,963 398,536 321,329 288,574 105.8 0 0 27 593,906 

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

Trading Revenues: Cash & Derivative Instruments 

93,038,452 91,135,543 89,596,552 85,481,544 82,917,057 12.2 3 151 26,918 93,011,379 

Interest rate .......................................................................... 809 1,642 315 1,634 880 -8.1 0 0 -3 811 

Foreign exchange ................................................................. 1,765 1,454 1,283 1,700 1,274 38.5 0 0 2 1,762 

Equity ................................................................................ 844 1,243 130 887 348 142.5 0 0 1 843 

Commodity & other (including credit derivatives) ........................ -292 507 166 212 -307 -4.9 0 0 0 -292 

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

Share of Revenue 

3,125 4,846 1,895 4,433 2,194 42.4 0 0 0 3,125 

Trading revenues to gross revenues (%) .................................... 2.8 4.4 1.9 4.5 2.4 0.0 0.0 0.0 2.9 

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

HELD FOR PURPOSES OTHER THAN TRADING 

16.6 25.5 11.4 22.6 14.0 0.0 0.1 0.0 17.1 

Number of institutions reporting derivatives ................................. 856 840 799 724 713 20.1 66 501 210 79 

Total assets of institutions reporting derivatives ........................... 7,538,090 7,427,974 7,306,336 7,083,907 6,998,707 7.7 4,571 207,257 692,952 6,633,310 

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

Derivative Contracts by Underlying Risk Exposure 

4,963,262 4,829,804 4,731,111 4,582,275 4,519,742 9.8 3,683 162,828 500,182 4,296,570 

Interest rate .......................................................................... 2,523,728 2,456,196 2,409,044 2,413,129 2,519,782 0.2 251 8,778 64,431 2,450,268 

Foreign exchange ................................................................. 96,813 102,338 98,984 100,828 100,360 -3.5 60 1 683 96,069 

Equity ................................................................................ 4,071 3,989 2,780 3,639 2,764 47.3 33 286 1,433 2,320 

Commodity & other .............................................................. 4,192 3,250 53 32 32 N/M 0 4 4,187 0 

Total notional amount ........................................................... 2,628,804 2,565,773 2,510,861 2,517,627 2,622,938 0.2 343 9,069 70,735 2,548,657 

All line items are reported on a quarterly basis.
 

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

** 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 Banking Profile 

Changes in Insurance Fund Balances 

(dollar figures in millions) Bank Insurance Fund 

4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr 

2005 2005 2005 2005 2004 2004 2004 

Savings Association Insurance Fund 

4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 

2005 2005 2005 2005 2004 2004 2004 

Beginning Fund Balance $35,334 $35,094 $34,824 $34,787 $34,467 $34,110 $34,164 

Unrealized Gain (Loss) on 

Available-For-Sale Securities –176 –36 –53 –127 –32 77 –332 

Provision for Insurance Losses –21 –65 –46 –6 –136 –64 –32 

All Other Income, Net of Expenses 288 211 277 158 216 216 246 

Total Fund Balance Change 133 240 270 37 320 357 –54 

Ending Fund Balance $35,467 $35,334 $35,094 $34,824 $34,787 $34,467 $34,110 

$13,039 $12,929 $12,793 $12,720 $12,523 $12,411 $12,394 

–60 –11 –18 –41 –10 24 –109 

2 0 –10 –14 –95 24 –2 

152 121 144 100 112 112 124 

90 110 136 73 197 112 17 

$13,129 $13,039 $12,929 $12,793 $12,720 $12,523 $12,411 

FOURTH QUARTER 2005 ALL FDIC-INSURED INSTITUTIONS 
 

 

 

 

 

 

 

 

 

 

 

1.37 

TABLE I-B. Selected Insurance Fund Indicators* 

(dollar figures in millions) 

Bank Insurance Fund 

Preliminary 

4th Quarter 

2005 

3rd Quarter 

2005 

4th Quarter 

2004 

%Change 

04:4-05:4 

Reserve ratio (%).................................................................................. 1.23 1.25 1.30 -5.2 

Fund Balance ...................................................................................... $35,467 $35,334 $34,787 2.0 

Estimated insured deposits .................................................................... 2,872,086 2,825,080 2,671,446 7.5 

SAIF-member Oakars......................................................................... 121,185 111,953 104,708 15.7 

BIF-members ................................................................................... 2,750,901 2,713,128 2,566,738 7.2 

Assessment base ................................................................................ 4,904,544 4,784,131 4,517,823 8.6 

SAIF-member Oakars......................................................................... 147,198 138,014 114,254 28.8 

BIF-members ................................................................................... 

Savings Association Insurance Fund 

4,757,347 4,646,117 4,403,569 8.0 

Reserve ratio (%) ............................................................................... 1.29 1.30 1.34 -3.9 

Fund Balance ..................................................................................... $13,129 $13,039 $12,720 3.2 

Estimated insured deposits .................................................................... 1,020,557 1,005,819 950,608 7.4 

BIF-member Oakars .......................................................................... 463,108 452,101 444,448 4.2 

SAIF-member Sassers ....................................................................... 93,260 92,150 92,538 0.8 

Other SAIF members ......................................................................... 464,189 461,568 413,622 12.2 

Assessment base ................................................................................. 1,270,214 1,254,531 1,155,737 9.9 

BIF-member Oakars .......................................................................... 499,680 484,571 460,559 8.5 

SAIF-member Sassers ....................................................................... 125,053 124,038 120,438 3.8 

Other SAIF members ......................................................................... 645,481 645,922 574,740 12.3 

Insurance Fund Reserve Ratios*	 Fund Balances and Insured Deposits* 

Percent of Insured Deposits ($Millions) 1.43 

1.42	 BIF BIF-Insured SAIF SAIF-Insured 

Balance Deposits Balance Deposits 

BIF Ratio SAIF Ratio 

1.37 1.37 

1.35 

1.36 

1.32 

1.25 

Target 

Ratio 1.26 

1.27 

1.36 12/99 29,414 2,151,454 10,281 717,591

1.32 

12/00 30,975 2,299,932 10,759 755,156 1.34 1.34 

1.33 

1.32 

1.31 

1.30 

1.33	 12/01 30,439 2,409,566 10,935 801,171 

1.28 

1.32 

1.26 

12/02 32,050 2,524,474 11,747 859,205 

1.30 3/03 32,382 2,531,307 11,906 867,908 

1.25 

1.29 

1.23 

6/03 32,800 2,562,053 12,083 876,305 

9/03 33,462 2,541,540 12,186 872,777 

12/03 33,782 2,556,288 12,240 896,123 

3/04 34,164 2,585,283 12,394 914,182 

6/04 34,110 2,605,707 12,411 926,769 

9/04 34,467 2,611,916 12,523 943,666 

12/04 34,787 2,671,446 12,720 950,608 

3/05 34,824 2,724,389 12,793 965,445 

6/05 35,094 2,776,974 12,929 980,711 

9/05 35,334 2,825,080 13,039 1,005,819 

12/05 35,467 2,872,086 13,129 1,020,557 

12/99 12/00 12/01 12/02 12/03 3/04 6/04 9/04 12/04 3/05 6/05 9/05 12/05 

* Estimated insured deposits are based on preliminary data. A reserve ratio is the fund balance as a percentage of estimated insured deposits. 

As with other Call Report items, prior periods may reflect adjustments. As a result, prior period reserve ratios may differ from previously 

reported values. Only year-end fund balances are audited by GAO. Fund balances for the most recent period are unaudited. BIF-insured 

deposit totals include U.S. branches of foreign banks. 

TABLE II-B. Closed/Assisted Institutions 

(dollar figures in millions) 2005 2004 2003 2002 2001 2000 1999 

BIF Members 

Number of institutions ...................................................... 0 3 3 10 3 6 7 

Total assets ................................................................... $0 $151 $1,097 $2,508 $54 $378 $1,490 

SAIF Members 

Number of institutions ...................................................... 0 1 0 1 1 1 1 

Total assets ................................................................... $0 $15 $0 $50 $2,200 $30 $71 
TABLE III-B. Selected Indicators, By Fund Membership* 

(dollar figures in millions) 2005 2004 2003 2002 2001 2000 1999 

BIF Members 

Number of institutions reporting ......................... 7,732 7,839 7,995 8,125 8,327 8,572 8,835 

BIF-member Oakars ..................................... 761 773 766 801 766 743 744 

Other BIF-members ...................................... 6,971 7,066 7,229 7,324 7,561 7,829 8,091 

Total assets ................................................... $9,353,507 $8,744,800 $7,897,886 $7,335,707 $6,857,373 $6,510,744 $5,980,127 

Total deposits ................................................ 6,231,390 5,773,937 5,216,328 4,854,908 4,567,603 4,337,661 3,987,336 

Net income .................................................... 118,145 108,670 106,199 92,456 76,388 73,430 73,952 

Return on assets (%) ....................................... 1.31 1.31 1.40 1.32 1.14 1.18 1.29 

Return on equity (%) ........................................ 12.92 13.74 15.21 14.31 12.89 13.86 15.11 

Noncurrent assets plus OREO to assets (%) ......... 0.48 0.54 0.76 0.91 0.89 0.72 0.62 

Number of problem institutions ........................... 44 69 102 116 90 74 66 

Assets of problem institutions ............................ $4,736 $27,161 $28,812 $32,176 $31,881 $10,787 $4,450 

Number of failed/assisted institutions .................. 0 3 3 10 3 6 7 

Assets of failed/assisted institutions ..................... $0 $151 $1,097 $2,508 $54 $378 $1,490 

SAIF Members 

Number of institutions reporting .......................... 1,100 1,136 1,186 1,229 1,287 1,332 1,387 

SAIF-member Oakars .................................... 148 149 146 133 130 122 123 

Other SAIF-members .................................... 952 987 1,040 1,096 1,157 1,210 1,264 

Total assets ................................................... $1,523,569 $1,360,815 $1,177,458 $1,099,965 $1,011,736 $952,154 $903,532 

Total deposits ................................................. 909,788 810,621 744,022 713,599 621,824 577,100 550,703 

Net income .................................................... 16,067 13,740 14,309 12,462 10,623 8,071 8,450 

Return on assets (%) ....................................... 1.12 1.09 1.25 1.17 1.11 0.89 0.99 

Return on equity (%) ........................................ 9.89 10.14 13.85 12.79 13.46 11.12 11.97 

Noncurrent assets plus OREO to assets (%) ......... 0.60 0.50 0.69 0.79 0.75 0.65 0.64 

Number of problem institutions ........................... 8 11 14 20 24 20 13 

Assets of problem institutions ............................ $1,872 $1,089 $1,105 $6,751 $7,923 $13,053 $5,524 

Number of failed/assisted institutions .................. 0 1 0 1 1 1 1 

Assets of failed/assisted institutions ..................... $0 $15 $0 $50 $2,200 $30 $71 

*Excludes insured branches of foreign banks (IBAs) 

TABLE IV-B. Estimated FDIC-Insured Deposits by Fund Membership and Type of Institution 

(dollar figures in millions) 

12/31/2005 

Commercial Banks and Savings Institutions 

Number of 

Institutions 

Total 

Assets 

Domestic 

Depostis* 

Estimated Insured Deposits 

BIF SAIF Total 

FDIC-Insured Commercial Banks ........................ 7,527 9,039,674 5,152,701 2,592,820 491,991 3,084,812 

BIF-member ................................................ 7,416 8,828,058 5,020,879 2,554,066 433,615 2,987,682 

SAIF-member ............................................. 111 211,616 131,822 38,754 58,376 97,130 

FDIC-Supervised .......................................... 4,802 1,718,599 1,270,552 740,320 116,630 856,950 

OCC-Supervised .......................................... 1,818 6,003,169 3,085,590 1,450,913 283,449 1,734,362 

Federal Reserve-Supervised ........................... 907 1,317,907 796,560 401,587 91,912 493,499 

FDIC-Insured Savings Institutions ..................... 1,305 1,837,401 1,067,829 278,130 528,566 806,696 

OTS-Supervised Savings Institutions .................. 862 1,512,206 837,571 154,622 476,708 631,330 

BIF-member ................................................ 44 260,361 105,064 74,158 12,519 86,677 

SAIF-member ............................................. 818 1,251,844 732,507 80,464 464,189 544,653 

FDIC-Supervised State Savings Banks ............... 443 325,195 230,258 123,508 51,858 175,366 

BIF-member ................................................ 272 265,087 187,190 121,541 16,973 138,514 

SAIF-member ............................................. 

Total Commercial Banks and 

171 60,108 43,068 1,967 34,884 36,851 

Savings Institutions ....................................... 8,832 10,877,075 6,220,530 2,870,950 1,020,557 3,891,508 

BIF-member ................................................... 7,732 9,353,507 5,313,133 2,749,765 463,108 3,212,873 

SAIF-member ................................................ 

Other FDIC-Insured Institutions 

1,100 1,523,569 907,397 121,185 557,450 678,635 

U.S. Branches of Foreign Banks ........................ 13 11,115 6,654 1,136 0 1,136 

Total FDIC-Insured Institutions ........................... 8,845 10,888,191 6,227,185 2,872,086 1,020,557 3,892,643 

* Excludes $921 billion in foreign office deposits, which are uninsured. 
TABLE V-B. Assessment Base Distribution and Rate Schedules 

BIF Assessment Base Distribution
 

Assessable Deposits in Billions as of December 31, 2005
 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2006
 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized

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

Assessable deposit base ..................... 

2. Adequately capitalized

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

Assessable deposit base ..................... 

3. Undercapitalized

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

Assessable deposit base ..................... 

7,325 

$4,839 

49 

$8 

0 

$0 

94.6% 

98.7% 

0.6% 

0.2% 

0.0% 

0.0% 

320 4.1% 

$54 1.1% 

6 0.1% 

$1 0.0% 

0 0.0% 

$0 0.0% 

42 

$3 

1 

$0 

2 

$0 

0.5%

0.1% 

0.0%

0.0% 

0.0%

0.0% 

NOTE: "Number" reflects the number of BIF members; "Base" reflects the BIF-assessable deposits held by both SAIF and BIF members. 

Institutions are categorized based on capitalization and a supervisory subgroup rating, which is generally determined 

by on-site examinations. 

SAIF Assessment Base Distribution
 

Assessable Deposits in Billions as of December 31, 2005
 

Supervisory and Capital Ratings for First Semiannual Assessment Period, 2006
 

Capital Group 

Supervisory Risk Subgroup 

A B C 

1. Well-capitalized

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

Assessable deposit base ..................... 

2. Adequately capitalized

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

Assessable deposit base ..................... 

3. Undercapitalized

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

Assessable deposit base ..................... 

1,033 

$1,252 

5 

$1 

0 

$0 

93.9% 

98.6% 

0.5% 

0.1% 

0.0% 

0.0% 

53 4.8% 

$15 1.2% 

1 0.1% 

$0 0.0% 

0 0.0% 

$0 0.0% 

8 

$2 

0 

$0 

0 

$0 

0.7%

0.1% 

0.0%

0.0% 

0.0%

0.0% 

NOTE: "Number" reflects the number of SAIF members; "Base" reflects the SAIF-assessable deposits held by both BIF and SAIF members. 

Institutions are categorized based on capitalization and a supervisory subgroup rating, which is generally determined 

by on-site examinations. 

Assessment Rate Schedule
 

First Semiannual 2006 Assessment Period
 

Cents per $100 of Assessable Deposits
 

Supervisory Risk Subgroup 

Capital Group A B C 

1. Well-capitalized .................................... 0 3 17 

2. Adequately capitalized ........................... 3 10 24 

3. Undercapitalized .................................... 10 24 27 

Note: Rates for the BIF and the SAIF are set separately by the FDIC. 

Currently, the rate schedules are identical. 
Quarterly Banking Profile
 

FOURTH QUARTER 2005 

Chart 1 

2005 Was Another Record-Setting Year For Industry Earnings 

$ Billions 

40 

30 

20 

10 

0 

2001 2002 2003 2004 2005 

22.7 22.4 

20.9 21.9 

25.4 

27.2 27.3 

25.3 

29.5 30.2 30.4 31.0 31.8 31.2 

32.5 

31.2 

34.1 33.2 

34.6 

32.9 

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

Securities and Other Gains/Losses, Net 

Net Operating Income 

Chart 2 

Institutions Maintained Their Margins in the Fourth Quarter 

Net Interest Margin (%) 

5.00 

4.50 

4.00 

3.50 

3.00 

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

Assets > $100 Million 

Assets < $100 Million 

4.17 

4.33 

4.07 

4.24 

3.67 

4.06 

3.48 

2001 2002 2003 2004 2005 

FEDERAL DEPOSIT INSURANCE CORPORATION ALL FDIC-INSURED INSTITUTIONS 
Quarterly Banking Profile
 

FOURTH QUARTER 2005 

Chart 3
 

Profitability Has Declined From Historic High Levels 

ROA (%) ROE (%) 

-0.20 

0.00 

0.20 

0.40 

0.60 

0.80 

1.00 

1.20 

1.40 

1.60 

-2.00 

0.00 

2.00 

4.00 

6.00 

8.00 

10.00 

12.00 

14.00 

16.00 

Return on Assets 

Return on Equity 

1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
 

Chart 4
 

Net Interest Income Was the Main Source
 

of Earnings Improvement
 

4th Quarter 2005 vs 4th Quarter 2004
 

$ Billions 

Increase in Increase in Increase in Increase in Decrease in 

Net Interest Noninterest Loan Loss Noninterest Gains on 

Income Income Provision Expense Securities Sales 

$3.2 

$0.4 

$0.9 $0.8 

-$0.6 

-1.0 

0.0 

1.0 

2.0 

3.0 

4.0 Positive Factors Negative Factors 

FEDERAL DEPOSIT INSURANCE CORPORATION ALL FDIC-INSURED INSTITUTIONS 
Quarterly Banking Profile
 

FOURTH QUARTER 2005 

Chart 5 

Credit Card Losses Surged in Fourth Quarter 

Net Charge-Off Rate (%) Number of Bankruptcy Filings (Thousands) 

1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005

 0

 1

 2

 3

 4

 5

 6

 7

 8

 9 

50 

100 

150 

200 

250 

300 

350 

400 

450 

500 

550 

Personal 

Bankruptcy 

Filings 

Credit Card Charge-Off Rates 

Sources: Bankruptcies - Administrative Offices of the United States Courts 

Charge-Off Rates - Commercial Bank Call Reports 

NOTE: Personal Bankruptcy Filings for December 2005 not available at time of release. 

Chart 6 

Goodwill Has Been the Fastest-Growing Component of Equity Capital 

Equity Capital and Reserves $ Billions 

0 

200 

400 

600 

800 

1000 

1200 

1400 

Other Intangibles 

Goodwill 

Tangible Equity 

Reserves 

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

2000 2001 2002 2003 2004 2005 

FEDERAL DEPOSIT INSURANCE CORPORATION ALL FDIC-INSURED INSTITUTIONS 
Quarterly Banking Profile
 

FOURTH QUARTER 2005 

Chart 7 

Borrowers Are Converting From Variable-Rate Home Equity Loans 

to Fixed-Rate Junior Lien Mortgages 

Total Outstanding, $ Billions 

800 

700 

600 

500 

400 

300 

200 

100 

0 

Junior Lien Mortgages 

Home Equity Loans 

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

2000 2001 2002 2003 2004 2005 

Chart 8 

Commercial Lending Has Strengthened in Recent Quarters 

Quarterly Change, $ Billions 

140 

120 

100 

80 

60 

40 

20 

0 

-20 

103 

33 

98 

68 64 

76 

124 

132 

119 

45 

92 96 

38 

-2 

40 

25 

15 

37 38 

111 

66 

18 

37 

113 

76 

101 

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

Commercial Loans 

Consumer Loans 

2002 2003 2004 2005 

FEDERAL DEPOSIT INSURANCE CORPORATION ALL FDIC-INSURED INSTITUTIONS