FDIC Quarterly 

Quarterly Banking Profile: 

First Quarter 2008 

Highlights: 

n Industry Earnings Decline 46 Percent from 

Year-Earlier Level 

n Loss Provisions Absorb a Higher Share of 

Revenue 

n Troubled Loans Accumulate in Real Estate 

Portfolios 

n Lending Growth Slows 

n Fourth Quarter 2007 Earnings Are Revised 

Below $1 Billion 

2008, Volume 2, Number 2 
 

 

 

 

 

 

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

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Chairman Sheila C. Bair 

Director, Division of Insurance Arthur J. Murton 

and Research 

Executive Editor Maureen E. Sweeney 

Managing Editors Richard A. Brown 

Diane L. Ellis 

Paul H. Kupiec 

Christopher J. Newbury 

Editor Kathy Zeidler 

Publication Managers Geri Bonebrake 

Lynne Montgomery 

Media Inquiries (202) 898-6993 
 

 

FDIC Quarterly 

2008, Volume 2, Number 2 

Quarterly Banking Profile: 

First Quarter 2008 

FDIC-insured commercial banks and savings institutions reported net income of $19.3 billion in the first quarter 

of 2008, a decline of $16.3 billion from the $35.6 billion that the industry earned in the first quarter of 2007. 

Insured institutions set aside $37.1 billion in loan-loss provisions during the quarter, as the asset quality of real 

estate portfolios continued to deteriorate. The average return on assets (ROA) was 0.59 percent, falling from 

1.20 percent in the first quarter of 2007. See page 1. 

Insurance Fund Indicators 

Insured deposits increased 3.3 percent in the first quarter, and the Deposit Insurance Fund reserve ratio fell to 

1.19 percent. Two institutions failed during the quarter. See page 14. 

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

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

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

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

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

 

 

 

 

 

 

 

 

Quarterly Banking Profile First Quarter 2008 

INSURED INSTITUTION PERFORMANCE 

n Industry Earnings Decline 46 Percent from Year-Earlier Level 

n Loss Provisions Absorb a Higher Share of Revenue 

n Troubled Loans Accumulate in Real Estate Portfolios 

n Lending Growth Slows 

n Fourth Quarter 2007 Earnings Are Revised Below $1 Billion 

Real Estate Troubles Hold Down Earnings 

Deteriorating asset quality concentrated in real estate 

loan portfolios continued to take a toll on the earnings 

performance of many insured institutions in first quarter 

2008. Higher loss provisions were the primary reason 

that industry earnings for the quarter totaled only 

$19.3 billion, compared to $35.6 billion a year earlier. 

FDIC-insured commercial banks and savings institutions 

set aside $37.1 billion in loan-loss provisions during the 

quarter, more than four times the $9.2 billion set aside in 

first quarter 2007. Provisions absorbed 24 percent of the 

industry’s net operating revenue (net interest income plus 

total noninterest income) in the quarter, compared to 

only 6 percent in the first quarter of 2007. The average 

return on assets (ROA) was 0.59 percent, falling from 

1.20 percent in first quarter 2007. The first quarter’s ROA 

is the second-lowest since fourth quarter 1991. The downward trend in profitability was relatively broad: slightly 

more than half of all insured institutions (50.4 percent) 

reported year-over-year declines in quarterly earnings. 

However, the brunt of the earnings decline was borne by 

larger institutions. Almost two out of every three institutions with more than $10 billion in assets (62.4 percent) 

reported lower net income in the first quarter, and four 

large institutions accounted for more than half of the 

$16.3-billion decline in industry net income. 

Chart 1 

Earnings Remain Well Below 

Year-Earlier Levels 

Restatements Shrink Fourth Quarter 2007 Profits 

Substantially 

Industry earnings for the fourth quarter of 2007 were 

previously reported as $5.8 billion, but sizable restatements 

by a few institutions caused fourth quarter net income to 

decline to $646 million. This is the lowest quarterly net 

income for the industry since insured institutions posted 

an aggregate net loss in the fourth quarter of 1990. After 

the restatements, the fourth quarter 2007 industry ROA 

was reduced to 0.02 percent. Most of the restatements 

stemmed from increased charges for goodwill impairment. 

The writedowns of goodwill reduced the industry’s equity 

capital, based on Generally Accepted Accounting Principles (GAAP), by approximately $4.7 billion (0.3 percent) 

from the amount originally reported, but they had no 

effect on regulatory capital levels, since goodwill is not 

included in capital for regulatory purposes. 

Market-Sensitive Revenues Remain Weak at 

Large Institutions 

In addition to the sharp increase in loan-loss provisions, 

lower noninterest income also contributed to the decline 

in industry earnings in the first quarter. Noninterest revenues fell on a year-over-year basis for a second consecutive 

quarter, declining by $1.7 billion (2.8 percent). Income 

Chart 2 

Loss Provisions Had a Fourfold 

Year-over-Year Increase 

$ Billions 1st Quarter 2007 to 1st Quarter 2008 

40 

36 

32 

28 

24 

20 

16 

12 

8 

4 

0 

–4 

Securities and Other Gains/Losses, Net ($ Billions)

Net Operating Income 36.9 38.0 38.1 

35.3 35.6 36.8 36.0 34.0 34.7 Negative Factors 32.6 31.8 31.2 32.5 33.2 

31.1 27.9 28.8 28.0 

20.0 Positive 

19.3 Factor

12.0 

8.3 

4.0 3.2

–0.4 –4.0 –1.7 

Increase in Decrease in Increase in Decrease Increase in 

Net Interest Noninterest Loan Loss in Gains on Noninterest 

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 Income Income Provision Securities Expense 

2004 2005 2006 2007 2008 

0.6 

Sales 

FDIC QUARTERLY 1 2008, VOLUME 2, NO. 2 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

from trading was $4.8 billion (67.8 percent) lower than in 

first quarter 2007, while sales of loans yielded $1.7 billion 

in losses compared to $2.0 billion in gains a year earlier. 

Sales of real estate acquired through foreclosure (OREO), 

which produced $3 million in gains a year ago, resulted in 

losses of $310 million in the first quarter. Other marketrelated sources of noninterest income, such as investment 

banking fees and venture capital revenue, were also lower 

than a year ago. In contrast, noninterest revenues that 

were based on transactional activities registered gains. 

Income from fiduciary activities was up by $867 million 

(12.7 percent), while income from service charges on 

deposit accounts rose by $862 million (9.4 percent). 

Revaluations of certain assets and liabilities under recently 

adopted fair value accounting1 reduced first quarter 

noninterest income by $1.2 billion. Fewer than one in 

three institutions reported year-over-year declines in 

noninterest income because the weakness in marketsensitive revenues primarily affected large institutions. 

Noninterest expense growth was relatively benign; total 

noninterest expense rose by $3.2 billion (3.7 percent) 

year-over-year. Net interest income was $8.3 billion 

(9.6 percent) above the level of a year earlier, as interestearning asset growth remained relatively strong and net 

interest margins improved slightly at large institutions. 

Interest Rate Environment Squeezes Community 

Bank Margins 

The industry’s net interest margin in the first quarter was 

3.33 percent, compared to 3.32 percent in both the fourth 

and first quarters of 2007. However, margins fell at most 

institutions, with 70 percent reporting declines from 

fourth-quarter 2007 levels and 61 percent reporting 

declines compared to first-quarter 2007 levels. The average margin at community banks—institutions with less 

than $1 billion in total assets—fell to 3.70 percent, the 

1 See Accounting Changes in Notes To Users. 

Chart 3 

lowest level since fourth quarter 1988. Community banks’ 

funding costs did not reprice downward as rapidly as larger 

institutions’ when short-term interest rates declined, 

owing to the larger share of retail deposits in community 

banks’ liabilities, the low level of interest rates, and the 

relative sharpness of the rate decline. Retail deposits typically reprice more slowly and their rates generally have a 

higher floor than other short-term liabilities. Margins 

improved at larger institutions because their short-term 

nondeposit borrowings repriced downward more quickly 

with the decline in market interest rates. 

Charge-Off Rate Climbs to Five-Year High 

Insured institutions charged off $19.6 billion (net) during 

the first quarter, an increase of $11.4 billion (139.1 percent) over the first quarter of 2007. This is the second 

consecutive quarter of very high net charge-offs—fourthquarter charge-offs totaled $16.4 billion. The annualized 

net charge-off rate in the first quarter rose to 0.99 percent, 

more than double the 0.45 percent rate of a year earlier 

and the highest quarterly net charge-off rate since the 

fourth quarter of 2001. Loss rates were higher at larger 

institutions. The average net charge-off rate at institutions with more than $1 billion in assets was 1.09 percent, 

more than three and a half times the 0.29 percent average 

rate at institutions with assets less than $1 billion. Industry net charge-offs were higher year-over-year in all major 

loan categories, but the largest increases were in residential real estate loans and in real estate construction and 

development loans. Net charge-offs of home equity lines 

of credit were $2.0 billion (614.7 percent) higher than 

in the first quarter of 2007, while charge-offs of closedend junior lien mortgages increased by $1.3 billion 

(1,019.1 percent), and first lien mortgage charge-offs were 

up by $2.3 billion (542.5 percent). Charge-offs of real 

estate construction and development loans increased 

by $1.6 billion (1,508.2 percent), and commercial and 

industrial (C&I) loan charge-offs rose by $1.4 billion 

Chart 4 

Community Banks’ Margins 

Continue to Decline 

5.00 

2.50 

3.00 

3.50 

4.00 

4.50 

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

2004 2005 2006 2007 2008 

Assets > $1 Billion 

Assets < $1 Billion 

3.70 

3.28 

Net Interest Margin (%) 

The Industry’s Troubled Mortgage Loans 

Continue to Increase 

0.0 

0.5 

1.0 

1.5 

2.0 

2.5 

3.0 

Percent Noncurrent 

Home Equity Lines of Credit 

3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 

First Lien Mortgages 

Closed-End Junior 

Lien Mortgages 

FDIC QUARTERLY 2 2008, VOLUME 2, NO. 2 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Banking Profile 

(130.7 percent). Charge-offs of credit card loans and 

other loans to individuals were higher as well (up 

$1.1 billion and $1.2 billion, respectively). 

Noncurrent Loan Growth Remains High 

Even with the heightened level of charge-offs, the 

amount of loans and leases that were noncurrent 

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

by $26.0 billion (23.6 percent) in the first quarter, 

following a $27.0-billion increase in the fourth quarter 

of 2007. Loans secured by real estate accounted for close 

to 90 percent of the total increase, but almost all major 

loan categories registered higher noncurrent levels. The 

amount of real estate construction and development 

loans that were noncurrent increased by $9.5 billion 

(47.2 percent) during the quarter, while noncurrent 

loans secured by 1-4 family residential properties other 

than home equity lines of credit increased by $9.3 billion 

(20.2 percent). Noncurrent real estate loans secured 

by nonfarm nonresidential properties increased by 

$2.2 billion (28.5 percent), and noncurrent home equity 

lines of credit rose by $1.5 billion (29.5 percent). 

Noncurrent C&I loans increased by $2.4 billion 

(24.9 percent). During the quarter, the percentage of 

total loans and leases that were noncurrent rose from 

1.39 percent to 1.71 percent, the highest noncurrent 

rate for the industry since the first quarter of 1994. 

At institutions with assets greater than $1 billion, the 

average noncurrent rate at the end of the quarter was 

1.74 percent. At smaller institutions, the average rate 

was 1.52 percent. More than half of all insured institutions—52.2 percent—saw their noncurrent rates rise 

during the first quarter. Restructured loans and leases 

(which are current under modified terms) increased 

by $4.0 billion (57.6 percent) during the quarter, but 

almost half of the increase was caused by banks including restructured 1-4 family residential real estate loans 

for the first time. These restructured loans added 

$1.8 billion to the total amount of restructured loans 

at the end of the first quarter. 

Reserve Coverage Loses Ground 

Insured institutions continued to build their loan-loss 

reserves in the first quarter. They added $37.1 billion in 

loss provisions to their reserves, which was $17.5 billion 

more than was subtracted from reserves by charge-offs. 

The increased loss provisions were the main reason that 

reserves increased by $18.5 billion (18.1 percent) during 

the quarter, to $120.9 billion. The industry’s ratio of loss 

reserves to total loans and leases increased from 1.30 percent to 1.52 percent, the highest level since the first quarter of 2004. However, the growth in loss reserves was 

outstripped by the rise in noncurrent loans, and the industry’s “coverage ratio” fell for the eighth consecutive quarter, to 89 cents in reserves for every $1.00 of noncurrent 

loans from 93 cents at the end of 2007. This is the lowest 

level for the coverage ratio since the first quarter of 1993. 

Institutions Cut Dividends to Preserve Capital 

Capital levels benefited from a reduction in dividend 

payments by many institutions during the quarter. Of 

the 3,776 insured institutions that paid common stock 

dividends in the first quarter of 2007, almost half 

(48 percent) paid lower dividends in the first quarter of 

2008, including 666 institutions that paid no dividends. 

Insured institutions paid $14.0 billion in total dividends 

in the first quarter, down $12.2 billion (46.5 percent) 

from a year earlier. Retained earnings (net income after 

dividends) totaled $5.3 billion, down $4.1 billion 

(43.6 percent) from a year earlier despite the lower 

dividend payments. Slightly more than half of all institutions (51.8 percent) reported year-over-year declines 

in retained earnings. Total regulatory capital increased 

by $25.5 billion (2.0 percent) in the first quarter, as 

tier 1 capital rose by $15.0 billion (1.5 percent) and tier 

2 capital increased by $10.5 billion (4.1 percent). All of 

Chart 5 Chart 6 

Reserve Growth Has Not Kept Pace with 

Rising Noncurrent Loans 

0 

20 

40 

60 

80 

100 

120 

140 

160 

3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 

$ Billions 

0 

20 

40 

60 

80 

100 

120 

140 

160 

180 

200 

Coverage Ratio (%) 

Coverage Ratio (Percent) 

Loan-Loss Reserves ($ Billions) 

Noncurrent Loans ($ Billions) 

Credit Growth Has Slowed Significantly 

Quarterly Change ($ Billions) 

300 

265 

44 

62 

190 

0 

50 

100 

150 

200 

250 

Total Loans & Leases 

249 

203 

237 

215 

14 

–12 

Unused Loan Commitments 

–50 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 

FDIC QUARTERLY 3 2008, VOLUME 2, NO. 2 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the increase in tier 2 capital consisted of higher loan-loss 

reserves. The industry’s core capital (leverage) ratio 

declined from 7.97 percent to 7.87 percent during the 

quarter. The tier 1 risk-based capital ratio slipped slightly 

from 10.11 percent to 10.10 percent, while the total 

risk-based capital ratio increased from 12.78 percent to 

12.83 percent. Ninety-nine percent of all insured institutions continued to meet or exceed the highest regulatory 

capital standards as of the end of the first quarter. Equity 

capital increased by $13.5 billion in the quarter. The 

relatively low level of retained earnings and a sharp 

increase in unrealized losses on available-for-sale securities were the chief reasons for the modest rise in equity. 

Other comprehensive income, which includes unrealized 

losses on securities, reduced equity capital by $12.1 billion in the first quarter. 

Growth in Credit Slows 

Total assets increased by $335.4 billion (2.6 percent) 

in the first quarter, even as loan growth slowed. Trading 

assets increased by $135.2 billion (15.4 percent), with 

much of the growth occurring in foreign offices of 

large banks. Total loans and leases increased by just 

$61.4 billion (0.8 percent) during the quarter. Loans 

secured by real estate rose by $20.5 billion (0.4 percent), 

the smallest quarterly increase since the first quarter of 

2003. Loans secured by 1-4 family residential properties 

declined for the first time since the fourth quarter of 

2003, falling by $26.5 billion (1.2 percent). Real estate 

construction and development loans grew by $2.7 billion 

(0.4 percent), the smallest quarterly increase since the 

fourth quarter of 2002. C&I loan growth remained 

relatively strong; loans to C&I borrowers increased by 

$45.5 billion (3.2 percent) in the quarter. Unused loan 

commitments declined by $12.3 billion (0.1 percent) 

during the quarter, with commitments to fund real estate 

construction and commercial real estate loans declining 

by $18.8 billion (6.2 percent), and commitments to 

extend credit under home equity lines falling by 

$10.3 billion (1.4 percent). 

Interest-Bearing Retail Deposits Post Strong Growth 

Deposits at insured institutions increased by $150.4 billion 

(1.8 percent) during the quarter. Deposits in foreign 

offices declined for the first time in three and a half years, 

falling by $5.8 billion (0.4 percent). Domestic interestbearing deposits other than time deposits (mostly savings 

deposits and interest-bearing checking deposits) accounted 

for more than three-quarters of the growth in total deposits, increasing by $116.7 billion (3.7 percent). Nondeposit 

liabilities increased by $171.6 billion (5.2 percent), led 

by securities sold under repurchase agreements (up 

$65.0 billion, or 12.6 percent) and trading liabilities 

(up $63.2 billion, or 18.5 percent). 

“Problem List” Continues to Grow 

The number of insured commercial banks and savings 

institutions reporting financial results declined from 8,534 

to 8,494 during the first quarter. Thirty-eight new charters 

were added, while 77 charters were absorbed by mergers 

and 2 institutions failed. Eighty-two insured institutions 

with combined assets of $13.1 billion converted to 

Subchapter S corporations during the first quarter. At the 

end of March, almost 30 percent of all insured institutions 

were Subchapter S corporations. During the quarter, two 

mutually owned insured savings institutions with combined 

assets of $1.3 billion converted to stock ownership. The 

number of institutions on the FDIC’s “Problem List” 

increased from 76 to 90 in the first quarter. Total assets 

of “problem” institutions rose from $22.2 billion to 

$26.3 billion. This is the sixth consecutive quarter that 

the number of “problem” institutions has increased, from 

a historic low of 47 institutions at the end of third quarter 

2006. The current level represents the largest number of 

institutions on the list since third quarter 2004, when 

there were 95 “problem” institutions. 

Author: Ross Waldrop, Sr. Banking Analyst 

Division of Insurance and Research, FDIC 

(202) 898-3951 

Chart 7 Chart 8 

The “Problem List” Is Growing from 

Historic Lows 

Shares of Industry Assets and Insured Institutions 

on the “Problem List,” 1990–2008* 

*For years prior to 2008, data are as of December 31. 

For 2008, data are as of March 31. 

0 

2 

4 

6 

8 

10 

12 

14 

16 

18 

20 

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 

18.4% 

0.2% 

9.9% 

1.1% 

Share of Industry Assets 

Share of Institutions 

Percent 

Retail Deposit Growth Strengthened 

–10 

–5 

0 

5 

10 

15 

20 

25 

30 

12341234123412341234 1 

12-Month Change (%) 

Time Deposits 

Non-interest 

Bearing Deposits 

All Other Interestbearing Deposits 

2003 2004 2005 2006 2007 2008

FDIC QUARTERLY 4 2008, VOLUME 2, NO. 2 
 

 

Quarterly Banking Profile 

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

2008** 2007** 2007 2006 2005 2004 2003 

Return on assets (%) ................................................................ 0.59 1.20 0.81 1.28 1.28 1.28 1.38 

Return on equity (%) ................................................................. 5.72 11.33 7.76 12.30 12.43 13.20 15.05 

Core capital (leverage) ratio (%) ............................................... 7.87 8.24 7.97 8.22 8.25 8.11 7.88 

Noncurrent assets plus 

other real estate owned to assets (%) ................................... 1.14 0.57 0.94 0.54 0.50 0.53 0.75 

Net charge-offs to loans (%) ..................................................... 0.99 0.45 0.59 0.39 0.49 0.56 0.78 

Asset growth rate (%) ............................................................... 11.58 6.89 9.89 9.04 7.64 11.36 7.58 

Net interest margin (%) ............................................................. 3.33 3.32 3.29 3.31 3.47 3.52 3.73 

Net operating income growth (%) ............................................. -46.31 -2.86 -27.49 8.53 11.39 4.02 16.39 

Number of institutions reporting ................................................ 8,494 8,649 8,534 8,680 8,833 8,976 9,181 

Commercial banks ................................................................. 7,240 7,379 7,283 7,401 7,526 7,631 7,770 

Savings institutions ................................................................ 1,254 1,270 1,251 1,279 1,307 1,345 1,411 

Percentage of unprofitable institutions (%) ............................... 13.92 9.03 12.00 7.93 6.22 5.97 5.99 

Number of problem institutions ................................................. 90 53 76 50 52 80 116 

Assets of problem institutions (in billions) ................................. $26 $21 $22 $8 $7 $28 $30 

Number of failed/assisted institutions ....................................... 2 1 3 0 0 4 3 

* Excludes insured branches of foreign banks (IBAs) 

** Through March 31, ratios annualized where appropriate. Asset growth rates are for 12 months ending March 31. 

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

(dollar figures in millions) 

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

1st Quarter 4th Quarter 1st Quarter %Change 

2008 2007 2007 07:1-08:1 

8,494 8,534 8,649 -1.8 

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

CONDITION DATA 

2,212,766 2,214,965 2,223,383 -0.5 

Total assets ......................................................................................................... $13,369,496 $13,034,074 $11,982,420 11.6 

Loans secured by real estate ........................................................................... 4,801,958 4,781,449 4,536,611 5.8 

1-4 Family residential mortgages .................................................................. 2,214,941 2,241,472 2,185,504 1.3 

Nonfarm nonresidential ................................................................................. 988,732 968,754 905,478 9.2 

Construction and development ...................................................................... 631,818 629,152 582,253 8.5 

Home equity lines .......................................................................................... 625,216 611,389 556,795 12.3 

Commercial & industrial loans .......................................................................... 1,485,856 1,440,369 1,250,196 18.8 

Loans to individuals .......................................................................................... 1,048,411 1,058,468 946,249 10.8 

Credit cards ................................................................................................... 386,854 421,818 354,163 9.2 

Farm loans ....................................................................................................... 53,886 56,786 52,874 1.9 

Other loans & leases ........................................................................................ 580,232 571,756 494,049 17.4 

Less: Unearned income ................................................................................... 2,457 2,312 2,288 7.4 

Total loans & leases ......................................................................................... 7,967,887 7,906,516 7,277,691 9.5 

Less: Reserve for losses .................................................................................. 120,908 102,400 78,439 54.1 

Net loans and leases ........................................................................................ 7,846,980 7,804,116 7,199,252 9.0 

Securities .......................................................................................................... 1,953,078 1,954,183 1,972,366 -1.0 

Other real estate owned ................................................................................... 15,671 12,142 6,971 124.8 

Goodwill and other intangibles ......................................................................... 469,049 461,627 423,534 10.7 

All other assets ................................................................................................. 3,084,718 2,801,979 2,380,296 29.6 

Total liabilities and capital ................................................................................... 13,369,496 13,034,074 11,982,420 11.6 

Deposits ........................................................................................................... 8,565,738 8,415,353 7,895,367 8.5 

Domestic office deposits ............................................................................... 7,069,007 6,912,778 6,695,092 5.6 

Foreign office deposits .................................................................................. 1,496,732 1,502,575 1,200,276 24.7 

Other borrowed funds ....................................................................................... 2,587,215 2,517,409 2,174,409 19.0 

Subordinated debt ............................................................................................ 185,583 185,393 165,328 12.3 

All other liabilities .............................................................................................. 669,947 568,373 479,758 39.6 

Equity capital .................................................................................................... 1,361,012 1,347,546 1,267,557 7.4 

Loans and leases 30-89 days past due ............................................................... 111,029 107,920 70,520 57.4 

Noncurrent loans and leases ............................................................................... 136,037 110,030 61,293 121.9 

Restructured loans and leases ............................................................................ 10,899 6,914 2,862 280.8 

Direct and indirect investments in real estate ...................................................... 956 1,097 1,033 -7.5 

Mortgage-backed securities ................................................................................ 1,281,306 1,236,040 1,226,924 4.4 

Earning assets ..................................................................................................... 11,475,127 11,305,681 10,515,851 9.1 

FHLB Advances .................................................................................................. 841,532 808,941 607,579 38.5 

Unused loan commitments .................................................................................. 8,304,038 8,316,328 7,822,039 6.2 

Trust assets ......................................................................................................... 20,936,709 21,863,464 20,205,834 3.6 

Assets securitized and sold*** ............................................................................. 1,724,123 1,784,676 1,669,276 3.3 

Notional amount of derivatives*** ........................................................................ 181,599,195 166,120,761 145,070,582 25.2 

INCOME DATA 

Full Year Full Year 1st Quarter 1st Quarter %Change 

2007 2006 %Change 2008 2007 07:1-08:1 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

$724,866 $643,488 12.7 $178,610 $176,213 1.4 

372,143 313,353 18.8 83,899 89,765 -6.5 

352,723 330,136 6.8 94,711 86,448 9.6 

69,034 29,545 133.7 37,120 9,191 303.9 

233,069 240,431 -3.1 60,554 62,276 -2.8 

367,034 332,307 10.5 90,881 87,653 3.7 

-1,362 1,969 N/M 1,222 1,585 -22.9 

46,490 68,081 -31.7 9,009 17,131 -47.4 

-1,735 2,669 N/M -130 -689 81.1 

100,137 145,273 -31.1 19,347 35,644 -45.7 

44,111 27,016 63.3 19,604 8,200 139.1 

110,345 93,446 18.1 14,009 26,186 -46.5 

-10,208 51,826 N/M 5,338 9,458 -43.6

102,548 141,418 -27.5 18,922 35,243 -46.3 

*** Call Report filers only. N/M - Not Meaningful 

FDIC QUARTERLY 5 2008, VOLUME 2, NO. 2 
TABLE III-A. First Quarter 2008, All FDIC-Insured Institutions 

FIRST 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 

8,494 26 6 1,550 4,749 807 102 364 838 52 

Commercial banks .............................................. 7,240 23 6 1,545 4,251 195 78 331 770 41 

Savings institutions ............................................. 1,254 3 0 5 498 612 24 33 68 11 

Total assets (in billions) ......................................... $13,369.5 $448.5 $3,085.6 $158.0 $5,271.1 $1,363.3 $66.4 $39.1 $113.0 $2,824.5 

Commercial banks .............................................. 11,494.7 431.0 3,085.6 157.5 4,717.1 212.6 28.6 33.7 96.5 2,732.3 

Savings institutions ............................................. 1,874.7 17.6 0.0 0.4 554.0 1,150.8 37.8 5.5 16.5 92.2 

Total deposits (in billions) ...................................... 8,565.7 155.3 1,868.4 127.8 3,668.2 781.7 54.5 28.9 92.7 1,788.3 

Commercial banks .............................................. 7,433.4 151.0 1,868.4 127.4 3,338.2 83.9 21.9 25.0 79.6 1,737.9 

Savings institutions ............................................. 1,132.4 4.2 0.0 0.4 330.0 697.7 32.6 3.9 13.1 50.4 

Net income (in millions) .......................................... 19,347 5,189 2,600 466 10,197 -720 211 209 284 911 

Commercial banks .............................................. 19,302 5,049 2,600 466 9,324 480 117 141 272 855 

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

Performance Ratios (%) 

45 140 0 1 873 -1,200 95 68 13 56 

Yield on earning assets .......................................... 6.28 12.22 5.74 6.71 6.50 6.25 7.49 5.19 6.29 5.47 

Cost of funding earning assets .............................. 2.95 3.58 2.91 2.87 2.83 3.52 2.58 2.12 2.68 2.86 

Net interest margin .............................................. 3.33 8.64 2.83 3.84 3.67 2.73 4.90 3.07 3.61 2.61 

Noninterest income to assets ................................. 1.84 11.06 1.83 0.66 1.58 1.22 2.19 10.29 0.92 1.12 

Noninterest expense to assets ............................... 2.76 6.29 2.71 2.61 2.88 2.30 3.25 9.68 2.93 2.11 

Loan and lease loss provision to assets ................ 1.13 5.14 0.95 0.17 0.85 1.89 1.87 0.11 0.14 0.89 

Net operating income to assets ............................. 0.57 4.16 0.37 1.17 0.73 -0.26 1.15 2.13 0.97 0.25 

Pretax return on assets .......................................... 0.86 7.18 0.47 1.42 1.15 -0.39 1.97 3.29 1.23 0.21 

Return on assets .................................................... 0.59 4.60 0.35 1.20 0.78 -0.21 1.30 2.18 1.02 0.13 

Return on equity ..................................................... 5.72 20.59 4.44 10.66 6.87 -2.57 14.31 10.74 9.00 1.36 

Net charge-offs to loans and leases ...................... 0.99 4.97 1.13 0.14 0.70 1.15 1.78 0.23 0.17 0.64 

Loan and lease loss provision to net charge-offs ... 189.35 138.90 202.29 184.24 172.68 231.27 121.83 187.06 143.45 262.33 

Efficiency ratio ........................................................ 56.73 32.15 64.01 62.03 57.75 60.86 47.23 73.91 68.72 61.82 

% of unprofitable institutions .................................. 13.92 7.69 16.67 3.42 17.46 16.98 9.80 26.10 5.73 13.46 

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

Condition Ratios (%) 

48.23 53.85 66.67 60.52 42.91 50.06 52.94 43.96 55.25 42.31 

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

Loss allowance to: 

85.83 78.88 81.90 91.80 87.79 91.61 94.58 89.48 91.92 83.95 

Loans and leases ................................................ 1.52 4.95 1.75 1.31 1.36 1.31 1.75 1.37 1.19 1.13 

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

Noncurrent assets plus 

88.88 222.70 112.56 103.49 77.12 54.97 209.06 146.56 114.53 90.28 

other real estate owned to assets ....................... 1.14 1.61 0.68 0.98 1.41 1.97 0.73 0.28 0.74 0.70 

Equity capital ratio .................................................. 10.18 22.86 7.57 11.22 11.36 8.09 9.01 19.97 11.33 9.61 

Core capital (leverage) ratio ................................... 7.87 15.33 6.07 10.17 8.82 7.92 8.89 18.01 10.78 6.55 

Tier 1 risk-based capital ratio ................................. 10.10 14.89 8.49 13.68 10.18 12.98 10.49 39.32 17.66 8.77 

Total risk-based capital ratio .................................. 12.83 17.65 12.37 14.74 12.42 14.95 12.56 40.31 18.77 11.81 

Net loans and leases to deposits ........................... 91.61 199.86 65.82 79.75 99.63 123.11 100.60 32.27 67.14 81.73 

Net loans to total assets ......................................... 58.69 69.18 39.86 64.49 69.33 70.59 82.64 23.82 55.10 51.75 

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

Structural Changes 

52.87 32.42 25.93 80.86 66.25 57.28 80.80 71.01 82.08 54.82 

New Charters ...................................................... 38 0 0 0 10 1 0 27 0 0 

Institutions absorbed by mergers ........................ 77 0 0 12 52 6 0 1 5 1 

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

PRIOR FIRST QUARTERS 

(The way it was...) 

2 0 0 1 1 0 0 0 0 0 

Number of institutions ................................. 2007 8,649 26 4 1,617 4,719 798 115 403 906 61

 ............................. 2005 8,931 28 5 1,698 4,489 971 134 459 1,079 68

 ............................. 2003 9,313 41 5 1,800 4,100 1,072 172 500 1,524 99 

Total assets (in billions) ............................... 2007 $11,982.4 $407.2 $2,435.7 $149.0 $4,757.5 $1,507.4 $99.4 $45.7 $119.5 $2,461.0

 ............................. 2005 10,286.4 363.7 1,875.5 135.1 3,466.7 1,582.0 110.9 54.5 137.0 2,561.0

 ............................. 2003 8,605.7 289.3 1,275.2 121.7 3,054.1 1,418.3 366.0 59.1 201.9 1,820.2 

Return on assets (%) ................................... 2007 1.20 3.84 0.93 1.19 1.15 0.91 1.77 2.03 0.99 1.25

 ............................. 2005 1.34 3.22 0.92 1.28 1.32 1.20 1.52 1.52 1.17 1.48

 ............................. 2003 1.39 3.59 1.08 1.23 1.32 1.53 1.57 1.23 1.13 1.25 

Net charge-offs to loans & leases (%) ........ 2007 0.45 3.86 0.57 0.14 0.23 0.21 1.43 0.18 0.17 0.31

 ............................. 2005 0.47 4.39 0.76 0.13 0.22 0.10 1.49 0.22 0.21 0.18

 ............................. 2003 

Noncurrent assets plus 

0.81 5.49 1.51 0.15 0.55 0.18 0.90 0.36 0.25 0.61 

OREO to assets (%) ................................. 2007 0.57 1.32 0.41 0.78 0.62 0.67 0.55 0.18 0.59 0.45

 ............................. 2005 0.50 1.26 0.54 0.71 0.49 0.41 0.52 0.30 0.56 0.42

 ............................. 2003 0.86 1.54 1.10 0.97 0.86 0.68 0.81 0.63 0.72 0.76 

Equity capital ratio (%) ................................. 2007 10.58 24.50 7.67 10.87 11.33 10.15 10.25 20.27 11.26 9.75

 ............................. 2005 10.26 21.96 8.17 10.78 9.95 10.83 11.10 17.09 10.79 9.97

 ............................. 2003 9.20 16.59 7.20 10.78 9.36 9.01 8.45 16.06 10.57 8.97 

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

FDIC QUARTERLY 6 2008, VOLUME 2, NO. 2 
 

 

Quarterly Banking Profile 

TABLE III-A. First Quarter 2008, All FDIC-Insured Institutions 

FIRST 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 

8,494 3,347 4,481 549 117 1,035 1,223 1,752 1,969 1,731 784 

Commercial banks .............................................. 7,240 2,975 3,761 419 85 539 1,078 1,446 1,861 1,604 712 

Savings institutions ............................................. 1,254 372 720 130 32 496 145 306 108 127 72 

Total assets (in billions) ......................................... $13,369.5 $178.0 $1,334.3 $1,438.2 $10,419.0 $2,477.4 $3,423.6 $2,963.1 $1,001.6 $749.0 $2,754.8 

Commercial banks .............................................. 11,494.7 159.0 1,085.2 1,111.3 9,139.2 1,788.4 3,155.2 2,815.2 958.5 623.7 2,153.7 

Savings institutions ............................................. 1,874.7 19.0 249.1 326.9 1,279.7 689.0 268.3 147.8 43.2 125.4 601.1 

Total deposits (in billions) ...................................... 8,565.7 144.7 1,055.8 1,012.4 6,352.9 1,539.1 2,205.7 1,880.2 713.7 548.2 1,678.8 

Commercial banks .............................................. 7,433.4 130.3 870.6 782.4 5,650.0 1,079.4 2,039.3 1,775.4 683.5 475.5 1,380.3 

Savings institutions ............................................. 1,132.4 14.4 185.2 230.0 702.8 459.7 166.5 104.8 30.2 72.7 298.5 

Net income (in millions) ......................................... 19,347 323 2,635 2,710 13,679 6,370 2,702 5,425 3,485 1,721 -356 

Commercial banks .............................................. 19,302 262 2,378 2,503 14,159 5,430 3,104 5,262 3,473 1,593 439 

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

Performance Ratios (annualized, %) 

45 61 257 207 -480 940 -402 162 12 129 -795 

Yield on earning assets ......................................... 6.28 6.63 6.67 6.58 6.17 6.48 5.99 5.69 6.82 6.49 6.81 

Cost of funding earning assets .............................. 2.95 2.75 3.00 2.96 2.94 2.99 3.00 2.86 2.65 2.80 3.08 

Net interest margin ............................................. 3.33 3.88 3.67 3.62 3.23 3.49 2.98 2.83 4.16 3.69 3.73 

Noninterest income to assets ................................ 1.84 1.57 1.02 1.52 1.99 2.32 1.52 2.08 3.20 1.45 1.14 

Noninterest expense to assets .............................. 2.76 3.97 3.07 2.92 2.67 2.85 2.45 2.48 3.71 3.09 2.90 

Loan and lease loss provision to assets ................ 1.13 0.24 0.33 0.76 1.29 0.99 1.08 1.02 1.15 0.57 1.56 

Net operating income to assets ............................. 0.57 0.68 0.76 0.73 0.53 0.98 0.38 0.68 1.30 0.84 0.00 

Pretax return on assets .......................................... 0.86 0.98 1.04 1.19 0.79 1.58 0.49 1.11 2.11 1.23 -0.14 

Return on assets .................................................... 0.59 0.74 0.80 0.76 0.53 1.04 0.32 0.75 1.40 0.94 -0.05 

Return on equity .................................................... 5.72 5.29 7.61 6.86 5.30 8.64 3.09 8.18 14.36 9.46 -0.52 

Net charge-offs to loans and leases ...................... 0.99 0.20 0.30 0.68 1.16 1.14 0.76 0.84 1.12 0.45 1.38 

Loan and lease loss provision to net charge-offs .. 189.35 191.73 155.03 159.54 193.65 152.69 230.76 226.59 147.22 188.80 179.41 

Efficiency ratio ....................................................... 56.73 77.17 69.24 57.31 54.78 51.07 58.38 53.74 52.83 63.81 64.41 

% of unprofitable institutions .................................. 13.92 20.11 9.64 9.29 22.22 17.87 25.10 11.59 7.01 8.84 25.00 

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

Condition Ratios (%) 

48.23 47.09 49.48 47.72 35.90 48.21 29.76 52.57 57.75 51.36 36.61 

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

Loss Allowance to: 

85.83 91.95 91.92 90.70 84.27 85.41 84.97 85.48 86.82 90.13 86.12 

Loans and leases ................................................ 1.52 1.30 1.20 1.39 1.59 1.68 1.34 1.56 1.50 1.25 1.65 

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

Noncurrent assets plus 

88.88 93.25 78.32 75.63 92.68 123.82 85.93 85.07 78.98 80.45 81.56 

other real estate owned to assets ....................... 1.14 1.10 1.33 1.43 1.07 0.81 1.08 1.09 1.51 1.21 1.40 

Equity capital ratio ................................................. 10.18 13.79 10.52 11.14 9.94 12.10 10.20 9.06 9.73 9.88 9.88 

Core capital (leverage) ratio .................................. 7.87 13.49 9.90 9.39 7.30 8.75 6.97 7.13 7.90 8.79 8.70 

Tier 1 risk-based capital ratio ................................. 10.10 19.68 13.11 11.91 9.32 11.95 8.82 8.81 9.55 11.14 11.52 

Total risk-based capital ratio .................................. 12.83 20.72 14.21 13.23 12.48 14.02 11.61 11.87 12.27 12.84 14.64 

Net loans and leases to deposits ........................... 91.61 75.58 87.62 96.92 91.79 88.63 94.20 81.85 95.62 89.25 100.92 

Net loans to total assets ........................................ 58.69 61.45 69.33 68.22 55.97 55.06 60.69 51.94 68.13 65.32 61.50 

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

Structural Changes 

52.87 81.29 79.01 69.69 46.72 53.26 58.07 49.55 64.41 72.37 40.15 

New Charters ...................................................... 38 38 0 0 0 7 14 0 1 7 9 

Institutions absorbed by mergers ........................ 77 31 33 11 2 10 16 10 22 17 2 

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

PRIOR FIRST QUARTERS 

(The way it was...) 

2 2 0 0 0 0 0 0 2 0 0 

Number of institutions ................................... 2007 8,649 3,597 4,397 536 119 1,087 1,222 1,818 2,007 1,742 773

 ................................ 2005 8,931 4,053 4,285 480 113 1,118 1,220 1,932 2,089 1,824 748

 ................................ 2003 9,313 4,613 4,135 456 109 1,201 1,243 2,046 2,159 1,892 772 

Total assets (in billions) ................................ 2007 $11,982.4 $189.6 $1,298.2 $1,420.9 $9,073.7 $2,204.1 $2,948.8 $2,778.8 $863.4 $662.8 $2,524.5

 ................................ 2005 10,286.4 210.1 1,207.8 1,324.5 7,544.1 2,843.6 2,274.0 2,423.0 762.9 618.5 1,364.4

 ................................ 2003 8,605.7 235.8 1,138.2 1,292.0 5,939.7 2,938.4 1,749.1 1,608.2 437.1 591.7 1,281.3 

Return on assets (%) .................................... 2007 1.20 0.85 1.08 1.14 1.23 1.13 1.22 1.07 1.75 1.11 1.20

 ................................ 2005 1.34 1.04 1.21 1.34 1.36 1.31 1.44 1.01 1.67 1.28 1.64

 ................................ 2003 1.39 1.02 1.19 1.33 1.45 1.26 1.36 1.40 1.53 1.39 1.64 

Net charge-offs to loans & leases (%) ......... 2007 0.45 0.15 0.13 0.25 0.55 0.81 0.22 0.31 0.63 0.19 0.57

 ................................ 2005 0.47 0.12 0.15 0.27 0.57 0.71 0.22 0.32 0.58 0.20 0.63

 ................................ 2003 

Noncurrent assets plus

0.81 0.19 0.27 0.49 1.03 1.24 0.62 0.63 1.04 0.37 0.65 

OREO to assets (%) ................................... 2007 0.57 0.77 0.67 0.58 0.55 0.55 0.36 0.60 1.08 0.63 0.61

 ................................ 2005 0.50 0.74 0.54 0.48 0.49 0.52 0.32 0.51 0.78 0.59 0.52

 ................................ 2003 0.86 0.92 0.76 0.69 0.92 0.94 0.76 0.98 0.82 0.83 0.72 

Equity capital ratio (%) .................................. 2007 10.58 13.24 10.50 11.24 10.43 12.73 10.04 9.13 10.57 10.60 10.92

 ................................ 2005 10.26 11.85 10.08 10.74 10.16 11.29 8.49 9.24 10.55 10.80 12.48

 ................................ 2003 9.20 11.35 10.02 10.09 8.76 8.88 9.22 8.60 10.61 9.60 9.97 

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

FDIC QUARTERLY 7 2008, VOLUME 2, NO. 2 
TABLE IV-A. Full Year 2007, All FDIC-Insured Institutions TABLE IV-A. Full Year 2007, All FDIC-Insured Institution 

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 

8,534 27 5 1,591 4,772 784 109 374 816 56 

Commercial banks ............................................... 7,283 23 5 1,586 4,278 181 84 332 752 42 

Savings institutions .............................................. 1,251 4 0 5 494 603 25 42 64 14 

Total assets (in billions) .......................................... $13,034.1 $479.3 $2,784.3 $157.5 $4,619.0 $1,328.1 $94.9 $37.9 $110.5 $3,422.7 

Commercial banks ............................................... 11,176.1 437.9 2,784.3 157.1 4,158.8 211.2 41.7 29.5 95.4 3,260.2 

Savings institutions .............................................. 1,857.9 41.4 0.0 0.4 460.2 1,116.9 53.1 8.4 15.0 162.4 

Total deposits (in billions) ....................................... 8,415.4 153.6 1,706.1 128.2 3,269.5 737.8 71.7 26.7 90.3 2,231.4 

Commercial banks ............................................... 7,309.8 143.2 1,706.1 127.8 2,966.8 78.6 27.9 21.1 78.5 2,159.9 

Savings institutions .............................................. 1,105.5 10.4 0.0 0.3 302.8 659.2 43.8 5.6 11.8 71.5 

Net income (in millions) .......................................... 100,137 14,974 14,893 1,796 37,035 383 1,178 943 1,108 27,828 

Commercial banks ............................................... 97,773 13,383 14,893 1,792 35,816 1,793 792 622 1,017 27,664 

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

Performance Ratios (%) 

2,364 1,591 0 4 1,219 -1,410 385 322 90 164 

Yield on earning assets .......................................... 6.75 13.19 6.23 7.15 6.88 6.54 7.61 5.48 6.56 6.23 

Cost of funding earning assets ............................... 3.47 4.63 3.64 3.18 3.29 3.92 3.35 2.45 2.86 3.30 

Net interest margin .............................................. 3.29 8.56 2.59 3.96 3.59 2.62 4.26 3.04 3.70 2.94 

Noninterest income to assets ................................. 1.89 10.49 1.97 0.68 1.26 0.93 2.53 11.07 1.03 1.88 

Noninterest expense to assets ............................... 2.98 8.47 2.83 2.69 2.78 2.47 3.54 9.87 3.05 2.74 

Loan and lease loss provision to assets ................. 0.56 3.72 0.59 0.18 0.39 0.62 1.03 0.09 0.14 0.34 

Net operating income to assets .............................. 0.83 3.25 0.57 1.20 0.88 0.06 1.23 2.54 1.01 0.90 

Pretax return on assets ........................................... 1.19 5.24 0.75 1.44 1.23 0.19 1.97 3.85 1.26 1.27 

Return on assets ..................................................... 0.81 3.36 0.58 1.20 0.84 0.03 1.26 2.56 1.03 0.88 

Return on equity ..................................................... 7.76 14.68 7.44 10.81 7.69 0.31 11.60 12.90 9.06 8.31 

Net charge-offs to loans and leases ....................... 0.59 3.95 0.76 0.22 0.35 0.40 0.87 0.29 0.22 0.39 

Loan and lease loss provision to net charge-offs ... 156.50 126.17 176.05 118.64 155.82 218.15 144.02 122.69 109.22 161.24 

Efficiency ratio ........................................................ 59.49 45.34 66.95 61.99 59.46 61.12 52.87 71.00 68.49 60.54 

% of unprofitable institutions ................................... 12.00 7.41 0.00 3.21 14.90 14.67 10.09 25.13 4.53 5.36 

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

Condition Ratios (%) 

48.59 55.56 40.00 60.78 46.56 32.14 48.62 44.65 54.41 44.64 

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

Loss Allowance to: 

86.74 80.85 83.66 91.04 88.46 92.35 91.25 88.20 91.62 85.08 

Loans and leases ................................................ 1.30 4.16 1.46 1.28 1.24 0.89 1.21 1.33 1.17 0.93 

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

Noncurrent assets plus

93.07 207.47 105.13 122.51 93.45 47.59 61.56 171.54 124.62 80.25 

other real estate owned to assets ......................... 0.94 1.54 0.66 0.83 1.07 1.52 1.64 0.23 0.65 0.68 

Equity capital ratio .................................................. 10.34 21.27 8.01 11.17 11.00 8.38 12.62 20.01 11.46 10.32 

Core capital (leverage) ratio ................................... 7.97 14.57 6.38 10.31 8.47 7.88 9.86 18.53 11.05 7.43 

Tier 1 risk-based capital ratio .................................. 10.11 13.12 8.59 13.69 9.72 12.94 11.32 40.92 18.14 9.86 

Total risk-based capital ratio ................................... 12.78 15.73 12.50 14.74 11.81 14.95 13.11 41.95 19.24 12.78 

Net loans and leases to deposits ............................ 92.74 229.49 71.46 80.83 98.52 126.69 105.79 33.55 68.77 81.83 

Net loans to total assets ......................................... 59.87 73.56 43.79 65.78 69.74 70.38 79.96 23.66 56.25 53.35 

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

Structural Changes 

53.04 29.58 26.68 81.38 68.19 55.49 74.62 68.18 81.78 53.35 

New Charters ....................................................... 181 1 0 5 49 5 0 120 1 0 

Institutions absorbed by mergers ........................ 321 1 0 24 254 12 2 2 7 19 

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

PRIOR FULL YEARS 

(The way it was...) 

3 0 0 0 0 2 0 0 0 1 

Number of institutions .................................. 2006 8,680 26 4 1,634 4,713 817 123 411 895 57

 ................................ 2004 8,976 34 5 1,731 4,423 990 132 466 1,120 75

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

Total assets (in billions) ............................... 2006 $11,861.5 $408.4 $2,337.2 $149.2 $4,904.7 $1,445.0 $109.9 $42.2 $119.6 $2,345.4

 ................................ 2004 10,105.9 383.0 1,881.3 138.7 3,301.4 1,503.6 104.1 52.0 143.3 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 

Return on assets (%) ................................... 2006 1.28 4.19 1.01 1.23 1.28 0.94 1.75 1.54 1.04 1.26

 ................................ 2004 1.28 4.03 0.76 1.22 1.29 1.18 1.66 1.68 1.10 1.32

 ................................ 2002 1.30 3.60 0.74 1.24 1.30 1.31 1.35 1.08 1.14 1.32 

Net charge-offs to loans & leases (%) ......... 2006 0.39 3.48 0.48 0.17 0.22 0.15 1.40 0.42 0.20 0.22

 ................................ 2004 0.56 4.66 0.91 0.22 0.30 0.12 1.57 0.59 0.29 0.25

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

Noncurrent assets plus

0.97 6.12 1.77 0.29 0.65 0.20 1.07 1.36 0.35 0.81 

OREO to assets (%) .................................. 2006 0.54 1.37 0.40 0.67 0.55 0.56 0.85 0.20 0.56 0.46

 ................................ 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 

Equity capital ratio (%) ................................. 2006 10.52 22.88 7.75 10.73 11.16 9.91 14.16 21.12 10.97 9.78

 ................................ 2004 10.28 20.54 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 

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

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

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

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

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

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

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

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

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

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

activity with no identified asset concentrations. 

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

activity with no identified asset concentrations. 

FDIC QUARTERLY 8 2008, VOLUME 2, NO. 2 
 

Quarterly Banking Profile 

TABLE IV-A. Full Year 2007, All FDIC-Insured Institutions 

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 

8,534 3,440 4,424 551 119 1,042 1,221 1,763 1,987 1,743 778 

Commercial banks ............................................... 7,283 3,065 3,705 427 86 548 1,076 1,455 1,880 1,618 706 

Savings institutions .............................................. 1,251 375 719 124 33 494 145 308 107 125 72 

Total assets (in billions) .......................................... $13,034.1 $181.9 $1,308.9 $1,422.2 $10,121.2 $2,439.6 $3,329.6 $2,842.5 $977.9 $738.6 $2,705.9 

Commercial banks ............................................... 11,176.1 162.9 1,060.9 1,114.7 8,837.7 1,759.5 3,061.0 2,685.6 935.2 621.1 2,113.7 

Savings institutions .............................................. 1,857.9 19.0 248.0 307.5 1,283.5 680.1 268.6 156.9 42.7 117.5 592.2 

Total deposits (in billions) ....................................... 8,415.4 148.1 1,039.2 1,009.7 6,218.3 1,512.9 2,185.1 1,828.3 691.1 547.1 1,650.9 

Commercial banks ............................................... 7,309.8 133.8 854.1 793.6 5,528.4 1,066.5 2,024.7 1,717.8 661.1 476.6 1,363.2 

Savings institutions .............................................. 1,105.5 14.3 185.1 216.1 690.0 446.4 160.4 110.5 30.0 70.5 287.7 

Net income (in millions) .......................................... 100,137 1,299 12,192 13,103 73,543 17,488 25,236 23,441 13,273 7,083 13,617 

Commercial banks ............................................... 97,773 1,261 10,603 11,182 74,727 16,541 26,289 22,932 13,087 6,242 12,681 

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

Performance Ratios (%) 

2,364 38 1,589 1,922 -1,185 946 -1,053 509 186 840 935 

Yield on earning assets .......................................... 6.75 6.95 7.14 7.06 6.65 6.81 6.56 6.07 7.61 7.14 7.25 

Cost of funding earning assets ............................... 3.47 2.91 3.29 3.37 3.52 3.45 3.47 3.34 3.26 3.28 3.73 

Net interest margin .............................................. 3.29 4.04 3.86 3.69 3.13 3.36 3.09 2.73 4.34 3.86 3.52 

Noninterest income to assets ................................. 1.89 1.22 1.13 1.43 2.07 2.17 1.53 2.04 3.36 1.37 1.55 

Noninterest expense to assets ............................... 2.98 3.78 3.14 2.84 2.97 3.17 2.59 2.76 4.21 3.19 3.02 

Loan and lease loss provision to assets ................. 0.56 0.22 0.27 0.45 0.62 0.67 0.38 0.39 0.85 0.33 0.82 

Net operating income to assets .............................. 0.83 0.73 0.96 1.02 0.79 0.81 0.85 0.86 1.44 1.00 0.54 

Pretax return on assets .......................................... 1.19 0.96 1.29 1.44 1.15 1.19 1.18 1.26 2.09 1.34 0.79 

Return on assets .................................................... 0.81 0.74 0.97 0.96 0.77 0.77 0.81 0.86 1.46 1.01 0.53 

Return on equity ..................................................... 7.76 5.30 9.27 8.54 7.50 6.24 7.85 9.59 14.26 9.85 4.89 

Net charge-offs to loans and leases ....................... 0.59 0.24 0.25 0.42 0.68 0.90 0.33 0.46 0.78 0.30 0.76 

Loan and lease loss provision to net charge-offs ... 156.50 147.94 152.97 152.86 157.15 130.36 184.53 155.08 154.10 165.15 167.28 

Efficiency ratio ........................................................ 59.49 76.17 66.14 57.65 58.57 56.89 59.88 61.13 57.71 64.15 59.57 

% of unprofitable institutions .................................. 12.00 18.37 7.66 6.72 13.45 16.22 18.26 11.57 6.39 8.38 19.92 

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

Condition Ratios (%) 

48.59 49.59 48.92 44.10 28.57 36.66 38.08 46.51 55.01 58.52 47.17 

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

Loss Allowance to: 

86.74 91.70 91.80 90.51 85.47 86.67 86.11 86.00 86.55 89.91 87.56 

Loans and leases ................................................ 1.30 1.28 1.18 1.31 1.31 1.52 1.07 1.30 1.39 1.17 1.38 

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

Noncurrent assets plus

93.07 106.92 96.32 95.20 92.05 121.39 92.01 84.98 81.63 92.68 87.82 

other real estate owned to assets ........................ 0.94 0.96 1.07 1.09 0.90 0.76 0.81 0.94 1.37 1.00 1.09 

Equity capital ratio .................................................. 10.34 13.73 10.50 11.35 10.12 12.06 10.30 9.23 9.75 10.22 10.24 

Core capital (leverage) ratio ................................... 7.97 13.53 9.95 9.42 7.40 8.67 7.06 7.17 8.08 8.87 9.02 

Tier 1 risk-based capital ratio ................................. 10.11 19.66 13.18 11.94 9.31 11.85 8.93 8.79 9.45 11.12 11.56 

Total risk-based capital ratio .................................. 12.78 20.69 14.28 13.26 12.39 13.91 11.64 11.72 12.18 12.78 14.63 

Net loans and leases to deposits ........................... 92.74 76.64 87.97 96.32 93.33 90.83 93.25 84.18 97.15 89.06 102.65 

Net loans to total assets ......................................... 59.87 62.40 69.85 68.39 57.34 56.32 61.19 54.14 68.66 65.98 62.63 

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

Structural Changes 

53.04 81.40 79.28 70.34 46.70 52.94 58.32 50.45 63.54 73.21 40.04 

New Charters ...................................................... 181 174 5 2 0 22 53 16 12 33 45 

Institutions absorbed by mergers ........................ 321 114 167 31 9 74 45 77 48 46 31 

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

PRIOR FULL YEARS 

(The way it was...) 

3 2 0 1 0 1 1 1 0 0 0 

Number of institutions ................................... 2006 8,680 3,632 4,399 530 119 1,092 1,218 1,826 2,018 1,753 773

 ................................ 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 

Total assets (in billions) ................................ 2006 $11,861.5 $189.9 $1,290.0 $1,397.5 $8,984.1 $2,215.8 $2,911.4 $2,746.2 $859.8 $652.3 $2,476.1

 ................................ 2004 10,105.9 211.7 1,199.6 1,317.0 7,377.6 2,855.0 2,177.1 2,387.5 768.2 603.1 1,315.1

 ................................ 2002 8,435.7 237.8 1,124.9 1,279.1 5,793.9 2,892.6 1,711.2 1,572.0 440.1 581.5 1,238.3 

Return on assets (%) .................................... 2006 1.28 0.92 1.16 1.22 1.31 1.27 1.31 1.10 1.76 1.23 1.29

 ................................ 2004 1.28 1.00 1.19 1.45 1.27 1.37 1.34 0.88 1.55 1.26 1.60

 ................................ 2002 1.30 0.99 1.16 1.44 1.31 1.11 1.32 1.28 1.58 1.41 1.58 

Net charge-offs to loans & leases (%) .......... 2006 0.39 0.18 0.16 0.20 0.47 0.72 0.19 0.28 0.55 0.21 0.43

 ................................ 2004 0.56 0.28 0.27 0.39 0.65 0.88 0.31 0.41 0.74 0.27 0.60

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

Noncurrent assets plus

0.97 0.32 0.41 0.69 1.18 1.45 0.71 0.77 1.19 0.44 0.81 

OREO to assets (%) ................................... 2006 0.54 0.73 0.59 0.52 0.53 0.51 0.33 0.57 1.05 0.62 0.56

 ................................ 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 

Equity capital ratio (%) .................................. 2006 10.52 13.01 10.39 10.97 10.42 12.47 10.05 9.07 10.64 10.42 10.92

 ................................ 2004 10.28 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 9.38 8.57 10.34 9.60 9.98 

* Regions: 

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

Rhode Island, Vermont, U.S. Virgin Islands 

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

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

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

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

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

FDIC QUARTERLY 9 2008, VOLUME 2, NO. 2 
TABLE V-A. Loan Performance, All FDIC-Insured Institutions 

March 31, 2008 All Insured 

Institutions 

Asset Concentration Groups* 

Credit Card 

Banks 

International 

Banks 

Agricultural 

Banks 

Commercial 

Lenders 

Mortgage 

Lenders 

Consumer 

Lenders 

Other 

Specialized 

<$1 Billion 

All Other 

<$1 Billion 

All Other 

>$1 Billion 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ....................................... 1.61 2.46 2.15 1.59 1.51 1.76 0.93 1.21 1.71 1.42 

Construction and development ...................................... 2.47 0.00 3.78 3.50 2.54 3.04 2.14 2.58 2.04 1.39 

Nonfarm nonresidential ................................................. 0.81 0.00 0.36 1.29 0.88 0.69 1.26 0.79 1.45 0.38 

Multifamily residential real estate .................................. 0.75 0.00 0.98 1.70 0.88 0.38 0.00 0.78 1.24 0.44 

Home equity loans ......................................................... 1.16 2.46 1.08 0.74 0.91 1.75 0.77 0.23 0.85 1.24 

Other 1-4 family residential ........................................... 1.96 2.67 2.93 1.91 1.80 1.87 0.99 1.33 1.91 1.82 

Commercial and industrial loans ...................................... 0.73 3.16 0.33 1.92 0.87 0.96 1.31 1.47 1.72 0.42 

Loans to individuals .......................................................... 1.92 2.41 1.96 2.11 1.78 1.38 1.64 1.94 2.11 1.52 

Credit card loans ........................................................... 2.29 2.35 2.40 1.18 2.02 2.35 1.16 3.00 1.22 2.30 

Other loans to individuals .............................................. 1.71 2.81 1.77 2.18 1.74 0.78 1.81 1.80 2.14 1.39 

All other loans and leases (including farm) ...................... 0.46 0.05 0.28 1.17 0.72 0.56 0.36 1.07 0.84 0.31 

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

Percent of Loans Noncurrent** 

1.39 2.32 1.30 1.57 1.36 1.73 1.36 1.35 1.70 1.11 

All real estate loans .......................................................... 2.19 2.05 2.33 1.46 2.25 2.48 0.63 0.97 1.09 1.77 

Construction and development ...................................... 4.71 0.00 2.84 5.47 4.57 8.11 2.42 2.93 2.53 4.89 

Nonfarm nonresidential ................................................. 1.02 0.00 0.64 1.41 1.00 0.91 1.10 0.60 1.29 1.17 

Multifamily residential real estate .................................. 0.98 0.00 0.38 1.53 1.20 0.47 1.60 2.98 1.26 0.94 

Home equity loans ......................................................... 1.08 2.18 0.93 0.52 0.76 1.83 0.23 0.07 0.31 1.26 

Other 1-4 family residential ........................................... 2.49 0.78 3.33 1.04 2.70 2.59 0.92 0.88 0.92 1.74 

Commercial and industrial loans ...................................... 0.79 2.82 0.47 1.55 0.87 1.14 0.81 1.35 1.33 0.65 

Loans to individuals .......................................................... 1.47 2.35 2.06 0.75 0.81 1.01 0.97 0.60 0.72 0.71 

Credit card loans ........................................................... 2.38 2.35 3.07 1.13 1.81 2.26 1.29 1.09 1.08 2.29 

Other loans to individuals .............................................. 0.94 2.36 1.64 0.72 0.64 0.25 0.86 0.53 0.71 0.45 

All other loans and leases (including farm) ...................... 0.57 0.03 1.00 0.75 0.44 0.34 0.07 0.56 0.68 0.17 

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

Percent of Loans Charged-off (net, YTD) 

1.71 2.22 1.55 1.27 1.76 2.39 0.83 0.93 1.04 1.25 

All real estate loans .......................................................... 0.73 2.94 1.26 0.09 0.56 1.09 0.47 0.04 0.08 0.59 

Construction and development ...................................... 1.10 0.00 1.18 0.38 1.02 2.13 0.33 -0.02 0.39 1.43 

Nonfarm nonresidential ................................................. 0.10 0.00 0.00 0.09 0.11 0.13 -0.01 -0.01 0.06 0.08 

Multifamily residential real estate .................................. 0.14 0.00 0.07 0.02 0.20 0.05 0.11 -0.01 0.02 0.05 

Home equity loans ......................................................... 1.54 3.05 1.49 0.22 1.20 2.90 0.33 0.69 0.11 1.25 

Other 1-4 family residential ........................................... 0.76 2.08 1.56 0.09 0.56 0.89 0.70 0.04 0.07 0.46 

Commercial and industrial loans ...................................... 0.67 6.65 0.29 0.30 0.65 1.11 4.50 0.02 0.22 0.41 

Loans to individuals .......................................................... 3.07 5.16 3.08 0.51 2.17 2.50 2.33 0.76 0.62 1.66 

Credit card loans ........................................................... 4.83 5.06 3.88 2.96 5.31 5.35 3.48 2.70 2.78 4.65 

Other loans to individuals .............................................. 1.96 5.80 2.73 0.34 1.60 0.71 1.90 0.47 0.55 1.15 

All other loans and leases (including farm) ...................... 0.24 0.01 0.08 0.00 0.39 0.23 0.05 1.06 0.00 0.35 

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

Loans Outstanding (in billions) 

0.99 4.97 1.13 0.14 0.70 1.15 1.78 0.23 0.17 0.64 

All real estate loans .......................................................... $4,802.0 $1.6 $463.9 $58.9 $2,449.4 $912.4 $19.8 $6.0 $43.5 $846.5 

Construction and development ...................................... 631.8 0.0 9.8 5.6 526.0 25.3 0.6 0.5 3.1 60.8 

Nonfarm nonresidential ................................................. 988.7 0.0 22.9 16.3 770.2 38.2 0.7 1.8 10.3 128.3 

Multifamily residential real estate .................................. 207.1 0.0 12.1 1.0 131.8 43.4 0.1 0.1 0.8 17.6 

Home equity loans ......................................................... 625.2 1.5 98.3 1.1 263.0 110.2 9.9 0.2 1.5 139.7 

Other 1-4 family residential ........................................... 2,214.9 0.1 263.4 15.1 716.2 694.3 8.3 3.1 24.7 489.6 

Commercial and industrial loans ...................................... 1,485.9 36.4 333.9 14.8 759.0 17.9 3.3 1.3 6.8 312.5 

Loans to individuals .......................................................... 1,048.4 263.8 231.5 6.2 300.0 39.0 32.2 1.5 8.3 165.8 

Credit card loans ........................................................... 386.9 226.8 68.7 0.4 44.0 14.9 8.4 0.2 0.3 23.3 

Other loans to individuals .............................................. 661.6 37.1 162.8 5.8 256.0 24.1 23.8 1.3 8.0 142.6 

All other loans and leases (including farm) ...................... 634.1 24.6 222.9 23.3 197.6 5.9 0.6 0.7 4.5 154.0 

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

Memo: Other Real Estate Owned (in millions) 

7,970.3 326.4 1,252.3 103.3 3,705.9 975.2 55.9 9.5 63.0 1,478.8 

All other real estate owned ............................................... 15,670.8 -21.4 1,380.2 233.9 9,024.9 3,569.3 17.1 20.4 182.3 1,264.0 

Construction and development ...................................... 3,225.0 0.0 1.0 77.3 2,775.7 296.2 1.1 3.8 28.0 42.0 

Nonfarm nonresidential ................................................. 1,890.1 1.2 12.0 69.4 1,496.1 61.7 3.3 12.2 54.0 180.4 

Multifamily residential real estate .................................. 449.1 0.0 0.0 12.0 324.0 14.2 0.0 0.0 28.0 70.8 

1-4 family residential ..................................................... 8,560.1 2.5 750.2 54.3 3,515.0 3,182.9 12.4 4.1 68.0 970.7 

Farmland ....................................................................... 60.7 0.0 0.0 20.9 34.5 0.3 0.3 0.4 4.3 0.0 

GNMA properties ........................................................... 1,313.2 0.0 410.0 0.0 875.8 27.4 0.0 0.0 0.0 0.0 

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

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

FDIC QUARTERLY 10 2008, VOLUME 2, NO. 2 
 

Quarterly Banking Profile 

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

March 31, 2008 

All 

Insured 

Institutions 

Asset Size Distribution Geographic Regions* 

Less 

than 

$100 Million 

$100 Million 

to 

$1 Billion 

$1 Billion 

to 

$10 Billion 

Greater 

than $10 

Billion New York Atlanta Chicago 

Kansas 

City Dallas 

San 

Francisco 

Percent of Loans 30-89 Days Past Due 

All loans secured by real estate ............................. 1.61 1.74 1.46 1.33 1.70 1.09 1.59 1.88 1.23 1.61 1.96 

Construction and development ........................... 2.47 1.99 2.33 2.52 2.53 1.99 2.15 3.55 1.57 2.01 3.05 

Nonfarm nonresidential ....................................... 0.81 1.45 1.08 0.77 0.66 0.94 0.61 1.19 0.80 0.87 0.48 

Multifamily residential real estate ........................ 0.75 1.57 1.08 0.92 0.62 0.46 0.76 2.06 0.50 0.94 0.45 

Home equity loans .............................................. 1.16 0.83 0.92 0.77 1.21 0.76 1.31 0.93 1.17 0.69 1.51 

Other 1-4 family residential ................................. 1.96 2.10 1.51 1.27 2.11 1.10 1.95 2.15 1.49 2.35 2.63 

Commercial and industrial loans ............................ 0.73 1.70 1.36 0.95 0.62 1.10 0.52 0.83 0.99 0.79 0.49 

Loans to individuals ............................................... 1.92 2.44 1.74 1.94 1.93 2.16 1.67 1.69 2.39 1.48 1.91 

Credit card loans ................................................. 2.29 1.77 2.34 2.32 2.29 2.29 2.39 2.14 2.33 1.13 2.38 

Other loans to individuals ................................... 1.71 2.45 1.70 1.72 1.70 1.95 1.58 1.54 2.43 1.56 1.61 

All other loans and leases (including farm) ............ 0.46 1.10 0.88 0.67 0.40 0.39 0.38 0.61 0.55 0.95 0.24 

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

Percent of Loans Noncurrent** 

1.39 1.72 1.44 1.29 1.40 1.25 1.32 1.48 1.27 1.40 1.56 

All real estate loans ............................................... 2.19 1.52 1.70 2.16 2.32 1.28 2.06 2.71 2.62 1.99 2.55 

Construction and development ........................... 4.71 3.26 4.28 5.14 4.75 3.66 4.63 5.53 4.05 3.49 6.07 

Nonfarm nonresidential ....................................... 1.02 1.42 1.07 0.93 1.02 1.26 0.87 1.53 0.85 0.80 0.58 

Multifamily residential real estate ........................ 0.98 1.49 1.27 1.84 0.64 0.46 1.07 3.00 0.75 1.56 0.49 

Home equity loans .............................................. 1.08 0.70 0.64 0.68 1.14 0.66 1.31 0.88 0.89 0.40 1.47 

Other 1-4 family residential ................................. 2.49 1.25 1.09 1.72 2.81 1.08 2.04 3.28 4.52 2.44 3.20 

Commercial and industrial loans ............................ 0.79 1.53 1.16 0.95 0.73 1.30 0.60 0.77 0.98 0.68 0.69 

Loans to individuals ............................................... 1.47 0.94 0.62 1.14 1.55 1.88 0.82 0.98 1.44 0.60 1.97 

Credit card loans ................................................. 2.38 1.06 1.52 2.28 2.40 2.45 2.26 2.00 2.09 1.24 2.63 

Other loans to individuals ................................... 0.94 0.94 0.55 0.49 1.01 0.97 0.64 0.65 0.96 0.45 1.55 

All other loans and leases (including farm) ............ 0.57 0.75 0.60 0.55 0.56 0.58 0.19 0.59 0.31 0.55 1.25 

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

Percent of Loans Charged-off (net, YTD) 

1.71 1.40 1.53 1.83 1.72 1.35 1.56 1.84 1.90 1.55 2.02 

All real estate loans ............................................... 0.73 0.14 0.22 0.48 0.90 0.23 0.71 0.90 0.67 0.37 1.14 

Construction and development ........................... 1.10 0.31 0.65 1.27 1.25 0.43 0.99 1.21 0.86 0.81 2.05 

Nonfarm nonresidential ....................................... 0.10 0.13 0.07 0.11 0.12 0.14 0.06 0.22 0.07 0.06 0.02 

Multifamily residential real estate ........................ 0.14 -0.01 0.07 0.40 0.08 0.04 0.24 0.52 0.05 0.16 0.04 

Home equity loans .............................................. 1.54 0.31 0.27 0.48 1.71 0.58 1.74 1.05 1.87 0.52 2.37 

Other 1-4 family residential ................................. 0.76 0.12 0.15 0.33 0.90 0.21 0.60 1.17 0.47 0.32 1.30 

Commercial and industrial loans ............................ 0.67 0.37 0.42 0.66 0.71 1.27 0.49 0.43 1.13 0.43 0.67 

Loans to individuals ............................................... 3.07 0.57 1.17 2.76 3.21 3.98 1.92 1.98 3.59 1.24 3.69 

Credit card loans ................................................. 4.83 1.93 7.32 4.73 4.82 4.84 5.47 4.60 5.25 3.26 4.72 

Other loans to individuals ................................... 1.96 0.55 0.70 1.62 2.12 2.51 1.44 1.08 2.26 0.77 3.00 

All other loans and leases (including farm) ............ 0.24 0.06 0.24 0.29 0.24 0.17 0.43 0.21 0.20 0.31 0.10 

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

Loans Outstanding (in billions) 

0.99 0.20 0.30 0.68 1.16 1.14 0.76 0.84 1.12 0.45 1.38 

All real estate loans ............................................... $4,802.0 $75.3 $728.0 $725.3 $3,273.4 $809.3 $1,391.5 $855.3 $394.3 $333.3 $1,018.3 

Construction and development ........................... 631.8 10.3 148.2 164.3 308.9 67.1 206.0 122.2 52.6 88.1 95.8 

Nonfarm nonresidential ....................................... 988.7 21.8 249.8 239.2 477.9 188.5 258.6 191.2 92.7 106.2 151.4 

Multifamily residential real estate ........................ 207.1 1.7 28.2 42.2 134.9 49.2 31.0 29.9 9.4 7.3 80.2 

Home equity loans .............................................. 625.2 2.5 34.3 43.2 545.2 60.0 199.7 154.9 76.2 22.1 112.2 

Other 1-4 family residential ................................. 2,214.9 30.2 239.3 222.4 1,723.0 439.8 675.3 339.3 144.6 99.2 516.8 

Commercial and industrial loans ............................ 1,485.9 16.1 125.8 155.6 1,188.2 204.0 361.6 362.5 129.3 102.8 325.6 

Loans to individuals ............................................... 1,048.4 8.5 47.7 78.9 913.3 275.8 192.2 176.2 95.1 39.4 269.6 

Credit card loans ................................................. 386.9 0.1 3.3 28.8 354.7 169.4 21.3 43.2 40.6 7.3 105.2 

Other loans to individuals ................................... 661.6 8.3 44.4 50.2 558.7 106.4 170.9 133.1 54.6 32.2 164.5 

All other loans and leases (including farm) ............ 634.1 11.0 35.4 35.7 552.1 98.5 161.3 169.6 74.2 20.1 110.3 

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

Memo: Other Real Estate Owned (in millions) 

7,970.3 110.9 936.8 995.6 5,927.1 1,387.7 2,106.7 1,563.6 692.9 495.6 1,723.9 

All other real estate owned .................................... 15,670.8 397.4 3,373.1 2,304.3 9,596.0 1,201.0 4,120.9 3,472.8 1,954.6 1,399.9 3,521.5 

Construction and development ........................... 3,225.0 87.2 1,424.8 943.4 769.6 210.9 1,099.0 605.8 376.5 504.0 428.8 

Nonfarm nonresidential ....................................... 1,890.1 123.2 763.5 363.9 639.5 251.4 481.2 469.3 282.3 318.1 87.8 

Multifamily residential real estate ........................ 449.1 9.7 147.5 115.3 176.6 54.2 129.5 144.9 47.1 31.7 41.7 

1-4 family residential ........................................... 8,560.1 163.3 1,006.3 870.1 6,520.3 657.3 2,360.4 1,666.5 662.6 490.8 2,722.5 

Farmland ............................................................. 60.7 14.1 28.1 8.2 10.4 11.1 5.4 6.7 7.8 27.8 1.9 

GNMA properties ................................................ 1,313.2 0.2 4.4 6.1 1,302.5 9.4 47.5 580.4 579.4 27.5 68.9 

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

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

FDIC QUARTERLY 11 2008, VOLUME 2, NO. 2 
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TABLE VI-A. Derivatives, All FDIC-Insured Commercial Banks and State-Chartered Savings Banks 

(dollar figures in millions; 

notional amounts unless otherwise indicated) 

Derivatives, All FDIC-Insured Commercial Banks and State-Chartered Savings Banks 

1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter %Change 

2008 2007 2007 2007 2007 07:1-08:1 

Asset Size Distribution 

$100 Million $1 Billion 

Less than to to Greater than 

$100 Million $1 Billion $10 Billion $10 Billion 

ALL DERIVATIVE HOLDERS 

Number of institutions reporting derivatives ................................. 1,093 1,044 1,026 1,059 1,057 3.4 72 672 269 80 

Total assets of institutions reporting derivatives ........................... $10,192,270 $9,826,616 $9,459,619 $9,147,957 $8,873,356 14.9 $5,299 $286,886 $846,204 $9,053,881 

Total deposits of institutions reporting derivatives ........................ 6,469,560 6,324,701 6,030,658 5,900,485 5,750,763 12.5 4,181 224,215 596,073 5,645,090 

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

Derivative Contracts by Underlying Risk Exposure 

181,599,195 166,120,761 174,581,925 154,810,235 145,070,582 25.2 168 19,499 92,568 181,486,961 

Interest rate .......................................................................... 141,878,832 129,488,054 138,717,531 123,336,016 116,751,443 21.5 135 19,145 84,948 141,774,604 

Foreign exchange* ............................................................... 19,738,204 17,174,160 16,696,567 15,117,713 14,167,853 39.3 22 48 5,940 19,732,194 

Equity ................................................................................. 2,410,959 2,522,430 2,745,807 2,487,655 2,180,725 10.6 10 171 1,013 2,409,765 

Commodity & other (excluding credit derivatives) ........................ 1,129,778 1,073,116 1,025,685 951,725 840,505 34.4 0 1 475 1,129,302 

Credit ................................................................................... 16,441,421 15,863,002 15,396,335 12,917,125 11,130,056 47.7 0 134 191 16,441,096 

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

Derivative Contracts by Transaction Type 

181,599,195 166,120,761 174,581,925 154,810,235 145,070,582 25.2 168 19,499 92,568 181,486,961 

Swaps ................................................................................ 112,564,785 103,100,905 111,395,368 95,327,302 88,014,320 27.9 25 10,592 58,860 112,495,307 

Futures & forwards ................................................................. 22,361,721 18,868,676 17,130,268 16,194,081 15,307,483 46.1 65 2,638 19,870 22,339,148 

Purchased options ................................................................. 14,285,714 13,772,286 14,552,366 14,288,409 14,737,701 -3.1 12 2,639 6,739 14,276,324 

Written options ....................................................................... 14,704,816 13,955,935 15,021,291 14,773,502 14,601,704 0.7 66 3,458 6,342 14,694,950 

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

Fair Value of Derivative Contracts 

163,917,035 149,697,803 158,099,293 140,583,294 132,661,208 23.6 168 19,326 91,812 163,805,728 

Interest rate contracts .............................................................. 45,259 33,895 30,716 20,006 24,424 85.3 0 39 -50 45,271 

Foreign exchange contracts ...................................................... 5,827 6,568 3,119 5,661 74,088 -92.1 0 0 -21 5,848 

Equity contracts .................................................................... -19,806 -18,941 -20,872 -24,473 -18,499 N/M 0 8 38 -19,852 

Commodity & other (excluding credit derivatives) ........................ 2,242 1,422 1,664 1,946 22,530 -90.0 0 0 1 2,241 

Credit derivatives as guarantor ................................................ -474,045 -212,447 -104,120 -22,960 9,032 N/M 0 0 -18 -474,027 

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

Derivative Contracts by Maturity** 

501,034 222,426 110,905 23,824 -9,668 N/M 0 0 18 501,017 

Interest rate contracts ........................................... < 1 year 42,621,616 39,085,061 48,918,705 39,403,807 32,457,723 31.3 40 2,723 26,679 42,592,173

 ............................ 1-5 years 39,752,478 37,222,183 36,310,944 33,846,133 33,802,189 17.6 13 9,497 21,206 39,721,762

 ............................ > 5 years 30,106,011 27,722,187 27,875,202 24,588,178 24,684,534 22.0 12 3,055 28,700 30,074,243 

Foreign exchange contracts ................................... < 1 year 12,524,602 11,591,807 10,094,603 8,948,450 8,372,488 49.6 22 7 4,214 12,520,359

 ............................ 1-5 years 1,924,840 1,604,898 1,831,220 1,667,700 1,571,241 22.5 0 3 26 1,924,811

 ............................ > 5 years 714,707 618,960 718,390 676,071 624,415 14.5 0 0 10 714,697 

Equity contracts ................................................... < 1 year 509,709 473,413 464,820 442,652 397,237 28.3 0 27 116 509,566

 ............................ 1-5 years 287,805 297,459 330,227 290,633 243,913 18.0 4 64 423 287,314

 ............................ > 5 years 39,960 70,485 70,134 62,916 74,332 -46.2 0 1 24 39,933 

Commodity & other contracts .................................. < 1 year 369,747 288,125 278,442 280,133 271,647 36.1 0 0 384 369,362

 ............................ 1-5 years 277,956 337,075 308,298 261,410 200,458 38.7 0 0 45 277,912

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

Risk-Based Capital: Credit Equivalent Amount 

33,492 26,387 27,617 27,273 23,931 40.0 0 0 5 33,487 

Total current exposure to tier 1 capital (%) ................................. 70.7 45.6 38.0 30.7 28.3 0.3 0.6 2.4 81.9 

Total potential future exposure to tier 1 capital (%) ........................ 119.0 109.9 114.7 113.5 106.9 0.1 0.4 0.9 138.2 

Total exposure (credit equivalent amount) to tier 1 capital (%) ......... 189.8 155.5 152.7 144.2 135.2 0.4 1.0 3.3 220.1 

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

HELD FOR TRADING 

14.8 156.1 125.5 6.0 -3.1 N/M 0.0 0.3 0.0 14.5 

Number of institutions reporting derivatives ................................. 171 165 158 166 155 10.3 10 50 58 53 

Total assets of institutions reporting derivatives ........................... 8,627,137 8,306,553 7,976,927 7,641,306 7,389,464 16.7 629 23,524 256,783 8,346,201 

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

Derivative Contracts by Underlying Risk Exposure 

5,468,260 5,354,716 5,081,807 4,917,882 4,770,607 14.6 481 18,444 177,649 5,271,686 

Interest rate .......................................................................... 139,169,246 127,126,330 136,068,952 120,820,783 114,003,897 22.1 8 456 32,983 139,135,799 

Foreign exchange ................................................................. 18,413,342 16,483,116 15,489,462 13,683,371 12,769,131 44.2 0 2 5,018 18,408,322 

Equity ................................................................................... 2,402,414 2,515,192 2,729,758 2,481,730 2,176,282 10.4 0 4 329 2,402,081 

Commodity & other ................................................................. 1,128,387 1,072,230 1,024,998 951,236 840,237 34.3 0 0 374 1,128,012 

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

Trading Revenues: Cash & Derivative Instruments 

161,113,388 147,196,868 155,313,171 137,937,120 129,789,547 24.1 8 462 38,704 161,074,214 

Interest rate .......................................................................... 2,393 -2,531 1,624 3,056 2,296 4.2 0 -1 24 2,371 

Foreign exchange ................................................................. 2,084 1,880 1,936 1,266 1,919 8.6 0 0 9 2,075 

Equity ................................................................................... -18 217 -98 1,020 1,759 N/M 0 0 0 -19 

Commodity & other (including credit derivatives) ........................... -3,206 -10,145 -803 937 1,046 N/M 0 0 0 -3,206 

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

Share of Revenue 

1,252 -10,579 2,659 6,279 7,020 -82.2 0 -1 33 1,221 

Trading revenues to gross revenues (%) .................................... 0.9 -7.7 1.8 4.2 4.9 0.0 -0.3 0.7 0.9 

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

HELD FOR PURPOSES OTHER THAN TRADING 

12.1 -277.3 14.9 27.8 33.2 0.0 -3.0 5.6 12.6 

Number of institutions reporting derivatives ................................. 1,004 964 951 973 971 3.4 63 626 241 74 

Total assets of institutions reporting derivatives ........................... 9,905,331 9,659,273 9,299,270 8,967,564 8,637,674 14.7 4,724 265,374 764,070 8,871,163 

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

Derivative Contracts by Underlying Risk Exposure 

6,282,654 6,209,186 5,922,180 5,776,895 5,583,083 12.5 3,744 207,265 536,325 5,535,319 

Interest rate .......................................................................... 2,709,587 2,361,724 2,648,579 2,515,233 2,747,545 -1.4 127 18,689 51,965 2,638,805 

Foreign exchange ................................................................. 84,124 131,087 120,808 124,526 119,405 -29.5 22 8 358 83,735 

Equity ................................................................................... 8,545 7,238 16,048 5,926 4,443 92.3 10 167 684 7,684 

Commodity & other ................................................................. 1,391 886 687 489 268 419.0 0 0 101 1,290 

Total notional amount .............................................................. 2,803,647 2,500,935 2,786,122 2,646,174 2,871,661 -2.4 160 18,864 53,108 2,731,514 

All line items are reported on a quarterly basis. 

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

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

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

FDIC QUARTERLY 12 2008, VOLUME 2, NO. 2 
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Quarterly Banking Profile 

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

(dollar figures in millions) 

1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter %Change 

2008 2007 2007 2007 2007 07:1-08:1 

Asset Size Distribution 

$100 Million $1 Billion 

Less than to to Greater than 

$100 Million $1 Billion $10 Billion $10 Billion 

Assets Securitized and Sold with Servicing Retained or with Recourse 

or Other Seller-Provided Credit Enhancements 

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

Outstanding Principal Balance by Asset Type 

135 127 125 128 128 5.5 16 57 23 39 

1-4 family residential loans ....................................................................................... $1,068,680 $1,139,383 $1,110,884 $1,118,504 $1,087,482 -1.7 $36 $476 $8,841 $1,059,327 

Home equity loans ................................................................................................. 8,341 9,353 9,894 10,640 9,339 -10.7 0 0 160 8,181 

Credit card receivables ........................................................................................... 402,171 390,035 379,662 372,481 367,796 9.3 0 2,848 11,548 387,775 

Auto loans ............................................................................................................ 7,495 9,019 10,433 12,547 14,132 -47.0 0 0 269 7,226 

Other consumer loans ........................................................................................... 27,787 28,542 29,386 27,396 27,737 0.2 0 0 2 27,785 

Commercial and industrial loans .............................................................................. 12,556 14,469 16,183 13,489 12,385 1.4 0 59 5,304 7,193 

All other loans, leases, and other assets* .................................................................. 197,091 193,875 184,941 162,434 150,404 31.0 10 323 541 196,218 

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

Maximum Credit Exposure by Asset Type 

1,724,123 1,784,676 1,741,383 1,717,491 1,669,276 3.3 46 3,706 26,667 1,693,704 

1-4 family residential loans ....................................................................................... 7,120 7,020 6,874 6,535 5,955 19.6 12 78 117 6,913 

Home equity loans ................................................................................................. 1,752 2,000 2,336 2,402 2,354 -25.6 0 0 8 1,745 

Credit card receivables ........................................................................................... 21,412 19,629 19,120 18,711 17,685 21.1 0 143 844 20,425 

Auto loans ............................................................................................................ 405 380 426 555 628 -35.5 0 0 21 385 

Other consumer loans ........................................................................................... 1,406 1,379 2,114 1,768 1,861 -24.4 0 0 0 1,406 

Commercial and industrial loans .............................................................................. 276 603 720 610 658 -58.1 0 21 84 171 

All other loans, leases, and other assets .................................................................. 3,228 3,733 4,578 1,053 1,052 206.8 10 260 32 2,926 

Total credit exposure ................................................................................................. 35,601 34,743 36,169 31,633 30,193 17.9 22 503 1,106 33,970 

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

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

2,944 4,686 5,095 5,667 6,116 -51.9 0 0 0 2,944 

1-4 family residential loans ....................................................................................... 2.5 2.7 2.7 2.6 2.1 0.0 0.1 8.2 2.5 

Home equity loans ................................................................................................. 0.7 0.8 0.7 0.6 0.7 0.0 0.0 2.4 0.7 

Credit card receivables ........................................................................................... 2.2 2.2 2.2 1.9 1.9 0.0 1.2 1.5 2.3 

Auto loans ........................................................................................................... 1.9 2.5 2.0 1.7 1.5 0.0 0.0 0.7 1.9 

Other consumer loans ........................................................................................... 2.5 3.1 2.8 2.8 2.4 0.0 0.0 0.0 2.5 

Commercial and industrial loans .............................................................................. 1.2 1.0 0.9 0.5 0.6 0.0 0.0 2.8 0.1 

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

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

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

2.2 2.3 2.3 2.1 1.9 0.0 0.9 4.0 2.1 

1-4 family residential loans ....................................................................................... 2.0 1.6 1.2 1.2 1.1 7.4 0.0 28.4 1.8 

Home equity loans ................................................................................................. 0.7 0.5 0.4 0.3 0.4 0.0 0.0 1.5 0.7 

Credit card receivables ........................................................................................... 2.1 1.9 1.7 1.6 1.8 0.0 1.1 1.4 2.1 

Auto loans .......................................................................................................... 0.3 0.4 0.2 0.2 0.2 0.0 0.0 0.1 0.3 

Other consumer loans ........................................................................................... 2.3 2.4 2.1 2.1 2.0 0.0 0.0 0.0 2.3 

Commercial and industrial loans .............................................................................. 1.1 0.9 0.7 0.6 0.5 0.0 0.0 2.5 0.1 

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

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

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

1.8 1.5 1.2 1.2 1.2 5.8 0.9 10.5 1.7 

1-4 family residential loans ....................................................................................... 0.0 0.1 0.1 0.0 0.0 0.0 0.0 1.2 0.0 

Home equity loans ................................................................................................. 0.1 0.2 0.1 0.1 0.1 0.0 0.0 0.4 0.1 

Credit card receivables ........................................................................................... 1.4 4.4 3.3 2.2 1.1 0.0 1.1 1.0 1.4 

Auto loans ........................................................................................................... 0.4 1.2 0.8 0.5 0.3 0.0 0.0 0.1 0.4 

Other consumer loans ........................................................................................... 0.2 1.3 1.1 0.7 0.4 0.0 0.0 0.0 0.2 

Commercial and industrial loans .............................................................................. 0.9 2.0 1.2 0.7 0.4 0.0 0.0 2.0 0.0 

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

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

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

0.4 1.1 0.8 0.5 0.3 0.0 0.8 1.2 0.3 

Home equity loans ................................................................................................. 282 347 494 651 671 -58.0 0 0 0 282 

Credit card receivables ........................................................................................... 73,418 86,748 77,451 73,405 61,569 19.2 0 215 3,868 69,335 

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

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

3,263 7,671 6,018 2,843 2,863 14.0 0 0 774 2,489 

Home equity loans ................................................................................................. 9 9 10 10 10 -10.0 0 0 0 9 

Credit card receivables ........................................................................................... 377 436 374 327 281 34.2 0 23 353 0 

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

Assets Sold with Recourse and Not Securitized 

1 2 6 9 1 0.0 0 0 0 1 

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

Outstanding Principal Balance by Asset Type 

758 758 748 738 731 3.7 148 460 106 44 

1-4 family residential loans ....................................................................................... 60,378 57,611 57,400 55,168 55,723 8.4 951 7,357 3,045 49,026 

Home equity, credit card receivables, auto, and other consumer loans .............................. 1,886 637 775 603 1,906 -1.0 1 23 3 1,860 

Commercial and industrial loans .............................................................................. 4,579 4,728 5,302 7,708 8,198 -44.1 0 160 83 4,336 

All other loans, leases, and other assets ..................................................................... 26,105 24,082 21,509 8,035 8,103 222.2 2 93 519 25,491 

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

Maximum Credit Exposure by Asset Type 

92,949 87,058 84,986 71,515 73,931 25.7 954 7,633 3,650 80,713 

1-4 family residential loans ....................................................................................... 14,088 14,779 15,885 14,551 13,831 1.9 129 1,437 2,177 10,345 

Home equity, credit card receivables, auto, and other consumer loans .............................. 165 604 742 575 1,871 -91.2 0 5 2 158 

Commercial and industrial loans .............................................................................. 3,335 3,393 3,671 4,453 4,543 -26.6 0 157 83 3,095 

All other loans, leases, and other assets ..................................................................... 7,204 6,968 6,299 2,226 2,260 218.8 1 14 127 7,062 

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

Support for Securitization Facilities Sponsored by Other Institutions 

24,793 25,744 26,597 21,805 22,504 10.2 132 1,612 2,388 20,661 

Number of institutions reporting securitization facilities sponsored by others ........................ 48 48 50 50 47 2.1 23 15 4 6 

Total credit exposure ................................................................................................. 6,824 2,841 1,478 1,375 1,348 406.2 7 108 107 6,602 

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

Other 

6,778 10,314 8,242 14,093 5,827 16.3 0 0 0 6,778 

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

Asset-backed commercial paper conduits 

3,800,630 3,798,672 3,648,511 3,570,238 3,496,710 8.7 3,646 65,140 103,590 3,628,254 

Credit exposure to conduits sponsored by institutions and others .................................... 22,332 22,226 22,592 22,211 21,404 4.3 2 0 370 21,960 

Unused liquidity commitments to conduits sponsored by institutions and others .................. 345,968 372,709 365,850 364,656 327,395 5.7 0 0 0 345,968 

Net servicing income (for the quarter) ........................................................................... 3,539 2,718 3,635 5,330 3,600 -1.7 64 119 114 3,241 

Net securitization income (for the quarter) ...................................................................... 5,136 5,006 5,812 5,355 4,964 3.5 0 54 280 4,802 

Total credit exposure to Tier 1 capital (%)*** .................................................................. 6.7 6.4 6.5 5.7 5.7 0.7 1.7 2.8 8.4 

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

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

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

FDIC QUARTERLY 13 2008, VOLUME 2, NO. 2 
 

 

 

 

 

INSURANCE FUND INDICATORS 

n Insured Deposits Grow by 3.3 Percent in the First Quarter 

n DIF Reserve Ratio Declines 3 Basis Points to 1.19 Percent 

n Two Insured Institutions Fail During the First Quarter 

During the first quarter of 2008, total assets of the 

nation’s 8,494 FDIC-insured commercial banks and 

savings institutions increased by $335.4 billion 

(2.6 percent). Total deposits, which increased by 

$150.4 billion, funded about 45 percent of this asset 

growth. Domestic deposits grew by 2.3 percent 

($156.2 billion) during the quarter, while deposits in 

foreign offices declined by $5.8 billion (0.4 percent).1 

Three-quarters of the growth in domestic deposits 

consisted of interest-bearing non-time deposits 

(savings deposits and interest bearing checking deposits), which tend to be retail accounts. Domestic time 

deposits increased by 1.0 percent, while other domestic 

interest-bearing deposits increased by 3.7 percent and 

domestic non-interest bearing deposits increased by 

1.2 percent. During the year ending March 31, total 

domestic deposits increased by 5.6 percent, with 

interest-bearing deposits rising by 6.3 percent and 

noninterest-bearing deposits rising by 2.3 percent. 

Over the past year, the share of assets funded by 

domestic deposits declined from 56 percent to 

53 percent. By contrast, over the same 12 months, 

foreign deposits as a percent of total assets rose from 

10.0 percent to 11.2 percent. Federal Home Loan Bank 

(FHLB) advances’ share of asset funding increased 

from 5.1 percent to 6.3 percent. From March 31, 2007, 

to March 31, 2008, foreign office deposits increased 

by 24.7 percent ($296.5 billion) and FHLB advances 

increased by 38.5 percent ($234.0 billion). Estimated 

insured deposits (including U.S. branches of foreign 

banks) increased by 3.3 percent ($140.5 billion) 

during the first quarter of 2008. This was the largest 

one-quarter increase in insured deposits since quarterly 

reporting was adopted in 1991. For the most recent 

12-month period, insured deposits increased by 

4.4 percent. For institutions reporting as of March 31, 

2008, and December 31, 2007, insured deposits 

increased during the first quarter at 6,375 institutions 

1 During the first quarter, the reported assessment base declined 

0.3 percent even as domestic deposits increased by 2.3 percent. This 

decline resulted from a change in the way that many large institutions 

calculate their assessment base. Beginning March 31, 2008, institutions with assets of $1 billion or more must report their assessable 

deposits based on daily average balances, rather than quarter-end 

amounts. During 2007, institutions with assets greater than $1 billion 

had a choice of reporting their assessable deposits based on either 

daily average balances or quarter-end amounts. Prior to 2007, all 

insured institutions derived their assessment base from quarter-end 

amounts. Institutions with assets less than $1 billion have the option 

to report daily average balances. 

(75 percent), decreased at 2,039 institutions (24 percent), and remained unchanged at 42 institutions. 

While first quarter insured deposit growth primarily 

reflects the strong quarterly growth in domestic 

deposits, a change in reporting instructions on the 

Call Report also contributed to the quarterly increase 

in insured deposits. Effective March 31, 2008, the 

amounts of estimated uninsured and insured deposits 

for institutions that file the Call Reports must equal 

total end-of-quarter assessable deposits. Prior to 2008, 

estimated uninsured and insured deposits were derived 

from domestic deposits as reported on the balance 

sheet. Estimated insured deposits now include certain 

items that are not included in domestic deposits on 

the balance sheet, such as insured accrued and unpaid 

interest and insured deposits of consolidated subsidiaries. For the second quarter, institutions filing the 

Thrift Financial Reports will adopt the same change. 

The Deposit Insurance Fund (DIF) increased by 

0.8 percent ($430 million) during the first quarter to 

$52,843 million. Accrued assessment income added 

$448 million to the DIF during the first quarter. The 

fund received $127 million from unrealized gains on 

available for sale securities and took in $380 million from 

interest on securities and other revenue, net of operating expenses. The DIF was reduced by $525 million in 

additional provisions for insurance losses. 

The DIF’s reserve ratio equaled 1.19 percent on 

March 31, 2008, which was 3 basis points lower than 

the previous quarter. Strong insured deposit growth 

and an increase in loss provisions were the primary 

factors contributing to the decline. Over the past 

four quarters, the DIF reserve ratio declined from 

1.20 percent to 1.19 percent. 

Two FDIC-insured institutions with combined assets 

of $70 million failed during the first quarter of 2008. At 

the time of failure, losses to the DIF were estimated at 

$8.6 million. During the 12 months ending March 31, 

2008, four insured institutions with combined assets of 

$2.4 billion failed, at an estimated current cost to the 

DIF of $177 million. 

Author: Kevin Brown, Sr. Financial Analyst 

Division of Insurance and Research, FDIC 

(202) 898-6817 

FDIC QUARTERLY 14 2008, VOLUME 2, NO. 2 
Quarterly Banking Profile 

TABLE I-B. Insurance Fund Balances and Selected Indicators 

(dollar figures in millions) Deposit Insurance Fund 

1st Quarter 

2008 

4th Quarter 

2007 

3rd Quarter 

2007 

2nd Quarter 

2007 

1st Quarter 

2007 

4th Quarter 

2006 

3rd Quarter 

2006 

2nd Quarter 

2006 

1st Quarter 

2006 

4th Quarter 

2005 

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

Changes in Fund Balance: 

$52,413 $51,754 $51,227 $50,745 $50,165 $49,992 $49,564 $49,193 $48,597 $48,373 

Assessments earned....................................... 448 239 170 140 94 10 10 7 5 13 

Interest earned on investment securities............... 618 585 640 748 567 476 622 665 478 675 

Operating expenses.......................................... 238 262 243 248 239 248 237 242 224 252 

Provision for insurance losses........................... 525 39 132 -3 -73 49 -50 -6 -45 -19 

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

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

0 -2 24 1 4 5 1 12 349 4 

securities................................................... 127 138 68 -162 81 -21 -18 -77 -57 -235 

Total fund balance change................................. 430 659 527 482 580 173 428 371 596 224 

Ending Fund Balance*.................................... 52,843 52,413 51,754 51,227 50,745 50,165 49,992 49,564 49,193 48,597

 Percent change from four quarters earlier......... 4.13 4.48 3.52 3.36 3.15 3.23 3.35 3.21 3.31 2.29 

Reserve Ratio (%).......................................... 1.19 1.22 1.22 1.21 1.2 1.21 1.22 1.23 1.23 1.25 

Estimated Insured Deposits ........................... 4,431,868 4,291,370 4,242,540 4,234,876 4,245,154 4,153,764 4,100,013 4,040,353 4,001,906 3,890,941

 Percent change from four quarters earlier......... 4.4 3.31 3.48 4.81 6.08 6.75 7.02 7.52 8.50 7.42 

Assessment Base 7,030,220 7,052,010 6,880,933 6,821,489 6,801,523 6,594,750 6,439,326 6,386,864 6,272,505 6,177,429

 Percent change from four quarters earlier......... 3.36 6.93 6.86 6.8 8.43 6.76 6.63 8.64 8.15 8.88 

Number of institutions reporting..................... 8,505 8,545 8,570 8,625 8,661 8,692 8,755 8,790 8,803 8,846 

DIF Reserve Ratios* 

1.32 

1.31 

1.29 1.28 

1.26 1.25 

1.23 1.23 1.22 

1.21 1.20 1.21 

1.22 1.22 

1.19 

9/04 3/05 9/05 3/06 9/06 3/07 9/07 3/08 

Percent of Insured Deposits 

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

(dollar figures in millions) 2008*** 2007*** 2007 2006 2005 2004 2003 

Problem Institutions

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

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

Failed/Assisted Institutions

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

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

90 

$26,311 

2 

$70 

53 

$21,445 

1 

$15 

76 

$22,189 

3 

$2,345 

50 

$8,265 

0 

$0 

52 

$6,607 

0 

$0 

80 

$28,250 

4 

$166 

116

$29,917 

3

$1,097 

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

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

*** Through March 31. 

Deposit Insurance Fund Balance and Insured Deposits* 

($ Millions) ($Millions) 

DIF-Insured 

DIF Balance Deposits 

9/04 46,990 3,559,489

12/04 47,507 3,622,068

3/05 47,617 3,688,562

6/05 48,023 3,757,728

9/05 48,373 3,830,950

12/05 48,597 3,890,941

3/06 49,193 4,001,906

6/06 49,564 4,040,353

9/06 49,992 4,100,013

12/06 50,165 4,153,764

3/07 50,745 4,245,154

6/07 51,227 4,234,876

9/07 51,754 4,242,540

12/07 52,413 4,291,370

3/08 52,843 4,431,868

FDIC QUARTERLY 15 2008, VOLUME 2, NO. 2 
 

 

 

 

 

 

 

 

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

(dollar figures in millions) 

March 31, 2008 

Commercial Banks and Savings Institutions 

Number of 

Institutions 

Total 

Assets 

Domestic 

Deposits* 

Est. Insured 

Deposits 

FDIC-Insured Commercial Banks ....................................... 7,240 11,494,748 5,937,063 3,540,634 

FDIC-Supervised ......................................................... 4,753 1,903,836 1,397,608 957,581 

OCC-Supervised ......................................................... 1,612 8,041,324 3,685,705 2,075,721 

Federal Reserve-Supervised .......................................... 875 1,549,589 853,751 507,332 

FDIC-Insured Savings Institutions ....................................... 1,254 1,874,748 1,131,943 886,226

 OTS-Supervised Savings Institutions .............................. 831 1,568,908 921,357 723,071

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

Total Commercial Banks and 

423 305,840 210,587 163,155 

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

Other FDIC-Insured Institutions 

8,494 13,369,496 7,069,007 4,426,860 

U.S. Branches of Foreign Banks ....................................... 11 19,415 7,748 5,008 

Total FDIC-Insured Institutions ........................................... 8,505 13,388,911 7,076,755 4,431,868 

* Excludes $1.50 trillion in foreign office deposits, which are uninsured. 

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

Quarter Ending December 31, 2007 

(dollar fgures in billions) 

Risk Category 

Annual 

Rate in 

Basis Points 

Number of 

Institutions 

Percent of Total 

Institutions 

Assessment 

Base 

Percent of Total 

Assessment 

Base 

I - Minimum ...................................................... 

I - Middle ....................................................... 

I - Middle ....................................................... 

I - Maximum .................................................... 

II ................................................................... 

III ................................................................. 

IV .................................................................. 

5 2,405 28.1 3,633 51.5 

5.01- 6.00 

6.01- 6.99 

3,028 

1,475 

35.4 

17.3 

2,294 

509 

32.5 

7.2 

7 1,105 12.9 394 5.6 

10 450 5.3 202 2.9 

28 75 0.9 19 0.3 

43 7 0.1 2 0.0 

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

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

FDIC QUARTERLY 16 2008, VOLUME 2, NO. 2 
 

 

 

 

 

 

 

Quarterly Banking Profile 

Notes To Users 

This publication contains financial data and other information for depository institutions insured by the Federal Deposit 

Insurance Corporation (FDIC). These notes are an integral part 

of this publication and provide information regarding the comparability of source data and reporting differences over time. 

Tables I-A through VIII-A. 

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

the FDIC Quarterly Banking Profile is aggregated for all FDICinsured institutions, both commercial banks and savings 

institutions. Tables VI-A (Derivatives) and VII-A (Servicing, 

Securitization, and Asset Sales Activities) aggregate information only for insured commercial banks and state-chartered 

savings banks that file quarterly Call Reports. Table VIII-A 

Trust Services aggregates Trust asset and income information 

collected annually from all FDIC-insured institutions. Some 

tables are arrayed by groups of FDIC-insured institutions 

based on predominant types of asset concentration, while 

other tables aggregate institutions by asset size and geographic 

region. Quarterly and full-year data are provided for selected 

indicators, including aggregate condition and income data, 

performance ratios, condition ratios and structural changes, 

as well as past due, noncurrent and charge-off information for 

loans outstanding and other assets. 

Tables I-B through IV-B. 

A separate set of tables (Tables I-B through IV-B) provides 

comparative quarterly data related to the Deposit Insurance 

Fund (DIF), problem institutions, failed/assisted institutions, 

estimated FDIC-insured deposits, as well as assessment rate 

information. Depository institutions that are not insured by 

the FDIC through the DIF are not included in the FDIC 

Quarterly Banking Profile. U.S. branches of institutions headquartered in foreign countries and non-deposit trust companies 

are not included unless otherwise indicated. Efforts are made 

to obtain financial reports for all active institutions. However, 

in some cases, final financial reports are not available for 

institutions that have closed or converted their charters. 

DATA SOURCES 

The financial information appearing in this publication is 

obtained primarily from the Federal Financial Institutions 

Examination Council (FFIEC) Call Reports and the OTS 

Thrift Financial Reports submitted by all FDIC-insured 

depository institutions. This information is stored on and 

retrieved from the FDIC’s Research Information System 

(RIS) data base. 

COMPUTATION METHODOLOGY 

Certain adjustments are made to the OTS Thrift Financial 

Reports to provide closer conformance with the reporting and 

accounting requirements of the FFIEC Call Reports. Parent 

institutions are required to file consolidated reports, while 

their subsidiary financial institutions are still required to file 

separate reports. Data from subsidiary institution reports are 

included in the Quarterly Banking Profile tables, which can 

lead to double-counting. No adjustments are made for any 

double-counting of subsidiary data. 

All asset and liability figures used in calculating performance 

ratios represent average amounts for the period (beginning-ofperiod amount plus end-of-period amount plus any interim 

periods, divided by the total number of periods). For “poolingof-interest” mergers, the assets of the acquired institution(s) 

are included in average assets since the year-to-date income 

includes the results of all merged institutions. No adjustments 

are made for “purchase accounting” mergers. Growth rates 

represent the percentage change over a 12-month period in 

totals for institutions in the base period to totals for institutions in the current period. 

All data are collected and presented based on the location of 

each reporting institution’s main office. Reported data may 

include assets and liabilities located outside of the reporting 

institution’s home state. In addition, institutions may relocate 

across state lines or change their charters, resulting in an 

inter-regional or inter-industry migration, e.g., institutions 

can move their home offices between regions, and savings 

institutions can convert to commercial banks or commercial 

banks may convert to savings institutions. 

ACCOUNTING CHANGES 

FASB Statement No. 157 Fair Value Measurements issued in 

September 2006 and FASB Statement No. 159 The Fair Value 

Option for Financial Assets and Financial Liabilities issued in 

February 2007—both are effective in 2008 with early adoption 

permitted in 2007. FAS 157 clarifies fair value and establishes 

a framework for developing fair value estimates for the fair 

value measurements that are already required or permitted 

under other standards. Fair value continues to be used for 

derivatives, trading securities, and available-for-sale securities. 

Changes in fair value go through earnings for the derivatives 

and trading securities. Changes in the fair value of availablefor-sale securities are reported in other comprehensive 

income. Available-for-sale securities and held-to-maturity 

debt securities are written down to fair value through earnings 

if impairment is other than temporary and mortgage loans 

held for sale are reported at the lower of cost or fair value. 

Loans held for investment are also subject to impairment but 

are written down based on the present value of discounted 

cash flows. FAS 159 allows banks to elect a fair value option 

when assets are recognized on the balance sheet and to report 

certain financial assets and liabilities at fair value with subsequent changes in fair value included in earnings. Existing eligible items can be fair-valued as early as January 2007 under 

FAS 159, if a bank adopts FAS 157. 

FASB Statement 158 Employers’ Accounting for Defined Benefit 

Pension and Other Postretirement Plans—issued in September 

2006 requires a bank to recognize in 2007 the funded status of 

its postretirement plans on its balance sheet. An overfunded 

plan is recognized as an asset and an underfunded plan is 

recognized as a liability. An adjustment is made to equity as 

accumulated other comprehensive income (AOCI) upon 

application of FAS 158 and AOCI is adjusted in subsequent 

periods as net periodic benefit costs are recognized in earnings. 

FASB Statement No. 156 Accounting for Servicing of Financial 

Assets—issued in March 2006 and effective in 2007, requires 

all separately recognized servicing assets and liabilities to be 

initially measured at fair value and allows a bank the option 

to subsequently adjust that value by periodic revaluation and 

recognition of earnings or by periodic amortization to earnings. 

FASB Statement No. 155, Accounting for Certain Hybrid Financial 

Instruments—issued in February 2006, requires bifurcation of 

certain derivatives embedded in interests in securitized financial assets and permits fair value measurement (i.e., a fair value 

FDIC QUARTERLY 17 2008, VOLUME 2, NO. 2 
 

option) for any hybrid financial instrument that contains an 

embedded derivative that would otherwise require bifurcation 

under FASB Statement No. 133, Accounting for Derivative 

Instruments and Hedging Activities (FAS 133). In addition, 

FAS 155 clarifies which interest-only and principal-only strips 

are not subject to FAS 133. 

Purchased Impaired Loans and Debt Securities—Statement 

of Position 03-3, Accounting for Certain Loans or Debt Securities 

Acquired in a Transfer. The SOP applies to loans and debt 

securities acquired in fiscal years beginning after December 

15, 2004. In general, this Statement of Position applies to 

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

debt securities that a bank has purchased, including those 

acquired in a purchase business combination, when it is 

probable, at the purchase date, that the bank will be unable 

to collect all contractually required payments receivable. 

Banks must follow Statement of Position 03-3 for Call Report 

purposes. The SOP does not apply to the loans that a bank 

has originated, prohibits “carrying over” or creation of valuation allowances in the initial accounting and any subsequent 

valuation allowances reflect only those losses incurred by the 

investor after acquisition. 

GNMA Buy-back Option—If an issuer of GNMA securities has 

the option to buy back the loans that collateralize the GNMA 

securities, when certain delinquency criteria are met, FASB 

Statement No. 140 requires that loans with this buy-back 

option must be brought back on the issuer’s books as assets. 

The rebooking of GNMA loans is required regardless of 

whether the issuer intends to exercise the buy-back option. 

The banking agencies clarified in May 2005 that all GNMA 

loans that are rebooked because of delinquency should be 

reported as past due according to their contractual terms. 

FASB Interpretation No. 45—In November 2002, the FASB 

issued Interpretation No. 45, Guarantor’s Accounting and 

Disclosure Requirements for Guarantees, Including Indirect 

Guarantees of Indebtedness of Others. This interpretation clarifies that a guarantor is required to recognize, at the inception 

of a guarantee (financial standby letters of credit, performance 

standby letters of credit), a liability for the fair value of the 

obligation undertaken in issuing the guarantee. Banks apply 

the initial recognition and measurement provisions of 

Interpretation No. 45 on a prospective basis to guarantees 

issued or modified after December 31, 2002, irrespective of 

the bank’s fiscal year end. A bank’s previous accounting for 

guarantees issued prior to January 1, 2003, is not revised. 

FASB Interpretation No. 46—The FASB issued Interpretation 

No. 46, Consolidation of Variable Interest Entities, in January 

2003 and revised it in December 2003. Generally, banks with 

variable interests in variable interest entities created after 

December 31, 2003, must consolidate them. The timing of 

consolidation varies with certain situations with application 

as late as 2005. The assets and liabilities of a consolidated 

variable interest entity are reported on a line-by-line basis 

according to the asset and liability categories shown on the 

bank’s balance sheet, as well as related income items. Most 

small banks are unlikely to have any “variable interests” in 

variable interest entities. 

FASB Statement No. 123 (Revised 2004) and Share-Based 

Payments—requires all entities to recognize compensation 

expense in an amount equal to the fair value of share-based 

payments, e.g., stock options and restricted stock, granted to 

employees. As of January 2006 all banks must adopt FAS 

123(R). The compensation cost is typically recognized over 

the vesting period with a corresponding credit to equity. The 

recording of the compensation cost also gives rise to a deferred 

tax asset. 

Goodwill and Intangible Assets—FAS 141 terminates the use 

of pooling-of-interest accounting for business combinations 

after 2001 and requires purchase accounting. Under FAS 142 

amortization of goodwill is eliminated. Only intangible assets 

other than goodwill are amortized each quarter. In addition 

companies are required to test for impairment of both goodwill and other intangibles once each fiscal year. The year 

2002, the first fiscal year affected by this accounting change, 

has been designated a transitional year and the amount of 

initial impairments are to be recorded as extraordinary losses 

on a “net of tax” basis (and not as noninterest expense). 

Subsequent annual review of intangibles and goodwill impairment may require additional noninterest expense recognition. 

FASB Statement No. 147 clarifies that acquisitions of financial institutions (except transactions between two or more 

mutual enterprises), including branch acquisitions that meet 

the definition of a business combination, should be accounted 

for by the purchase method under FASB Statement No. 141. 

This accounting standard includes transition provisions that 

apply to unidentifiable intangible assets previously accounted 

for in accordance with FASB Statement No. 72. If the transaction (such as a branch acquisition) in which an unidentifiable intangible asset arose does not meet the definition of a 

business combination, this intangible asset is not to be reported as “Goodwill” on the Call Report balance sheet. Rather, 

this unidentifiable intangible asset is to be reported as “Other 

intangible assets,” and must continue to be amortized and the 

amortization expense should be reported in the Call Report 

income statement. 

FASB Statement No. 133 Accounting for Derivative Instruments 

and Hedging Activities—All banks must recognize derivatives 

as either assets or liabilities on the balance sheet, measured at 

fair value. A derivative may be specifically designated as a 

“fair value hedge,” a “cash flow hedge,” or a hedge of a foreign 

currency exposure. The accounting for changes in the value of 

a derivative (gains and losses) depends on the intended use of 

the derivative, its resulting designation, and the effectiveness 

of the hedge. Derivatives held for purposes other than trading 

are reported as “other assets” (positive fair values) or “other 

liabilities” (negative fair values). For a fair value hedge, the 

gain or loss is recognized in earnings and “effectively” offsets 

loss or gain on the hedged item attributable to the risk being 

hedged. Any ineffectiveness of the hedge could result in a net 

gain or loss on the income statement. Accumulated net gains 

(losses) on cash flow hedges are recorded on the balance sheet 

as “accumulated other comprehensive income” and the periodic change in the accumulated net gains (losses) for cash 

flow hedges is reflected directly in equity as the value of the 

derivative changes. FASB Statement No. 149, Amendment 

of Statement 133 on Derivative Instruments and Hedging 

Activities provides guidance on the circumstances in which 

a loan commitment must be accounted for as derivative. 

Under Statement No. 149, loan commitments that relate to 

the origination of mortgage loans that will be held for sale, 

commonly referred to as interest rate lock commitments, must 

be accounted for as derivatives on the balance sheet by the 

issuer of the commitment. 

FDIC QUARTERLY 18 2008, VOLUME 2, NO. 2 
 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Banking Profile 

DEFINITIONS (in alphabetical order) 

All other assets—total cash, balances due from depository 

institutions, premises, fixed assets, direct investments in real 

estate, investment in unconsolidated subsidiaries, customers’ 

liability on acceptances outstanding, assets held in trading 

accounts, federal funds sold, securities purchased with agreements to resell, fair market value of derivatives, and other 

assets. 

All other liabilities—bank’s liability on acceptances, limitedlife preferred stock, allowance for estimated off-balance-sheet 

credit losses, fair market value of derivatives, and other 

liabilities. 

Assessment base—assessable deposits consist of DIF deposits 

(deposits insured by the FDIC Deposit Insurance Fund) in 

banks’ domestic offices with certain adjustments. 

Assets securitized and sold—total outstanding principal 

balance of assets securitized and sold with servicing retained 

or other seller-provided credit enhancements. 

Construction and development loans—includes loans for all 

property types under construction, as well as loans for land 

acquisition and development. 

Core capital—common equity capital plus noncumulative 

perpetual preferred stock plus minority interest in consolidated subsidiaries, less goodwill and other ineligible intangible 

assets. The amount of eligible intangibles (including servicing 

rights) included in core capital is limited in accordance with 

supervisory capital regulations. 

Cost of funding earning assets—total interest expense paid on 

deposits and other borrowed money as a percentage of average 

earning assets. 

Credit enhancements—techniques whereby a company 

attempts to reduce the credit risk of its obligations. Credit 

enhancement may be provided by a third party (external 

credit enhancement) or by the originator (internal credit 

enhancement), and more than one type of enhancement may 

be associated with a given issuance. 

Deposit Insurance Fund (DIF)—The Bank (BIF) and Savings 

Association (SAIF) Insurance Funds were merged in 2006 by 

the Federal Deposit Insurance Reform Act to form the DIF. 

Derivatives notional amount—The notional, or contractual, 

amounts of derivatives represent the level of involvement in 

the types of derivatives transactions and are not a quantification of market risk or credit risk. Notional amounts represent 

the amounts used to calculate contractual cash flows to be 

exchanged. 

Derivatives credit equivalent amount—the fair value of the 

derivative plus an additional amount for potential future 

credit exposure based on the notional amount, the remaining 

maturity and type of the contract. 

Derivatives transaction types: 

Futures and forward contracts—contracts in which the 

buyer agrees to purchase and the seller agrees to sell, at a 

specified future date, a specific quantity of an underlying 

variable or index at a specified price or yield. These contracts exist for a variety of variables or indices, (traditional 

agricultural or physical commodities, as well as currencies 

and interest rates). Futures contracts are standardized and 

are traded on organized exchanges which set limits on 

counterparty credit exposure. Forward contracts do not have 

standardized terms and are traded over the counter. 

Option contracts—contracts in which the buyer acquires 

the right to buy from or sell to another party some specified 

amount of an underlying variable or index at a stated price 

(strike price) during a period or on a specified future date, 

in return for compensation (such as a fee or premium). 

The seller is obligated to purchase or sell the variable or 

index at the discretion of the buyer of the contract. 

Swaps—obligations between two parties to exchange a 

series of cash flows at periodic intervals (settlement dates), 

for a specified period. The cash flows of a swap are either 

fixed, or determined for each settlement date by multiplying 

the quantity (notional principal) of the underlying variable 

or index by specified reference rates or prices. Except for 

currency swaps, the notional principal is used to calculate 

each payment but is not exchanged. 

Derivatives underlying risk exposure—the potential exposure 

characterized by the level of banks’ concentration in particular underlying instruments, in general. Exposure can result 

from market risk, credit risk and operational risk, as well as, 

interest rate risk. 

Domestic deposits to total assets—total domestic office 

deposits as a percent of total assets on a consolidated basis. 

Earning assets—all loans and other investments that earn 

interest or dividend income. 

Efficiency ratio—Noninterest expense less amortization of 

intangible assets as a percent of net interest income plus 

noninterest income. This ratio measures the proportion of 

net operating revenues that are absorbed by overhead expenses, so that a lower value indicates greater efficiency. 

Estimated insured deposits—in general, insured deposits are 

total domestic deposits minus estimated uninsured deposits. 

Prior to March 31, 2008, insured deposits are total domestic 

deposits minus estimated uninsured deposits. Prior to 2006, 

the uninsured estimate is based on the excess amounts in 

accounts of over $100,000. Beginning June 30, 2006, the 

uninsured estimate also considers excess amounts in IRA 

accounts over $250,000. Beginning March 31, 2008, for institutions that file Call reports, insured deposits are total assessable deposits minus estimated uninsured deposits. 

Failed/assisted institutions—an institution fails when regulators take control of the institution, placing the assets and 

liabilities into a bridge bank, conservatorship, receivership, or 

another healthy institution. This action may require the 

FDIC to provide funds to cover losses. An institution is 

defined as “assisted” when the institution remains open and 

receives some insurance funds in order to continue operating. 

FHLB advances—all borrowings by FDIC insured institutions 

from the Federal Home Loan Bank System (FHLB), as reported by Call Report filers and by TFR filers. 

Goodwill and other intangibles—intangible assets include 

servicing rights, purchased credit card relationships and other 

identifiable intangible assets. Goodwill is the excess of the 

purchase price over the fair market value of the net assets 

acquired. 

Loans secured by real estate—includes home equity loans, 

junior liens secured by 1-4 family residential properties and all 

other loans secured by real estate. 

FDIC QUARTERLY 19 2008, VOLUME 2, NO. 2 
 

 

 

 

 

 

Loans to individuals—includes outstanding credit card balances and other secured and unsecured consumer loans. 

Long-term assets (5+ years)—loans and debt securities with 

remaining maturities or repricing intervals of over five years. 

Maximum credit exposure—the maximum contractual credit 

exposure remaining under recourse arrangements and other 

seller-provided credit enhancements provided by the reporting bank to securitizations. 

Mortgage-backed securities—certificates of participation in 

pools of residential mortgages and collateralized mortgage 

obligations issued or guaranteed by government-sponsored or 

private enterprises. Also, see “Securities,” below. 

Net charge-offs—total loans and leases charged off (removed 

from balance sheet because of uncollectibility), less amounts 

recovered on loans and leases previously charged off. 

Net interest margin—the difference between interest and 

dividends earned on interest-bearing assets and interest paid 

to depositors and other creditors, expressed as a percentage of 

average earning assets. No adjustments are made for interest 

income that is tax exempt. 

Net loans to total assets—loans and lease financing receivables, net of unearned income, allowance and reserves, as a 

percent of total assets on a consolidated basis. 

Net operating income—income excluding discretionary transactions such as gains (or losses) on the sale of investment 

securities and extraordinary items. Income taxes subtracted 

from operating income have been adjusted to exclude the 

portion applicable to securities gains (or losses). 

Noncurrent assets—the sum of loans, leases, debt securities 

and other assets that are 90 days or more past due, or in nonaccrual status. 

Noncurrent loans & leases—the sum of loans and leases 90 

days or more past due, and loans and leases in nonaccrual 

status. 

Number of institutions reporting—the number of institutions 

that actually filed a financial report. 

Other borrowed funds—federal funds purchased, securities 

sold with agreements to repurchase, demand notes issued to 

the U.S. Treasury, FHLB advances, other borrowed money, 

mortgage indebtedness, obligations under capitalized leases 

and trading liabilities, less revaluation losses on assets held in 

trading accounts. 

Other real estate owned—primarily foreclosed property. 

Direct and indirect investments in real estate ventures are 

excluded. The amount is reflected net of valuation allowances. 

For institutions that file a Thrift Financial Report (TFR), the 

valuation allowance subtracted also includes allowances for 

other repossessed assets. Also, for TFR filers the components 

of other real estate owned are reported gross of valuation 

allowances. 

Percent of institutions with earnings gains—the percent of 

institutions that increased their net income (or decreased 

their losses) compared to the same period a year earlier. 

“Problem” institutions—federal regulators assign a composite 

rating to each financial institution, based upon an evaluation 

of financial and operational criteria. The rating is based on 

a scale of 1 to 5 in ascending order of supervisory concern. 

“Problem” institutions are those institutions with financial, 

operational, or managerial weaknesses that threaten their 

continued financial viability. Depending upon the degree of 

risk and supervisory concern, they are rated either a “4” or “5.” 

The number and assets of “problem” institutions are based 

on FDIC composite ratings. Prior to March 31, 2008, for 

institutions whose primary federal regulator was the OTS, the 

OTS composite rating was used. 

Recourse—an arrangement in which a bank retains, in form 

or in substance, any credit risk directly or indirectly associated 

with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the 

bank’s claim on the asset. If a bank has no claim on an asset it 

has sold, then the retention of any credit risk is recourse. 

Reserves for losses—the allowance for loan and lease losses 

on a consolidated basis. 

Restructured loans and leases—loan and lease financing 

receivables with terms restructured from the original contract. 

Excludes restructured loans and leases that are not in compliance with the modified terms. 

Retained earnings—net income less cash dividends on common and preferred stock for the reporting period. 

Return on assets—net income (including gains or losses on 

securities and extraordinary items) as a percentage of average 

total assets. The basic yardstick of bank profitability. 

Return on equity—net income (including gains or losses on 

securities and extraordinary items) as a percentage of average 

total equity capital. 

Risk-based capital groups—definition: 

Total Tier 1 

Risk-Based Risk-Based Tier 1 Tangible 

(Percent) Capital * Capital * Leverage Equity 

Well-Capitalized ≥10 and ≥6 and ≥5 – 

Adequately 

capitalized ≥8 and ≥4 and ≥4 – 

Undercapitalized ≥6 and ≥3 and ≥3 – 

Significantly 

undercapitalized <6 or <3 or <3 and >2 

Critically 

undercapitalized – – – ≤2 

*As a percentage of risk-weighted assets. 

Risk Categories and Assessment Rate Schedule—The current risk categories and assessment rate schedule became 

effective January 1, 2007. Capital ratios and supervisory ratings distinguish one risk category from another. The following 

table shows the relationship of risk categories (I, II, III, IV) to 

capital and supervisory groups as well as the assessment rates 

(in basis points) for each risk category. Supervisory Group A 

generally includes institutions with CAMELS composite ratings of 1 or 2; Supervisory Group B generally includes institutions with a CAMELS composite rating of 3; and Supervisory 

Group C generally includes institutions with CAMELS composite ratings of 4 or 5. For purposes of risk-based assessment 

capital groups, undercapitalized includes institutions that are 

significantly or critically undercapitalized. 

Assessment rates are 3 basis points above the base rate schedule. The FDIC may adjust rates up or down by 3 basis points 

from the base rate schedule without notice and comment, 

provided that any single adjustment from one quarter to the 

next cannot move rates more than 3 basis points. 

For most institutions in Risk Category I, the assessment rate 

assigned will be based on a combination of financial ratios and 

CAMELS component ratings. 

FDIC QUARTERLY 20 2008, VOLUME 2, NO. 2 
 

 

 

Quarterly Banking Profile 

Supervisory Group 

Capital Group A B C 

I 

1. Well Capitalized 5-7 bps III II 

28 bps 10 bps 2. Adequately Capitalized 

III IV 3. Undercapitalized 28 bps 43 bps 

For large institutions in Risk Category I (generally those with 

at least $10 billion in assets) that have long-term debt issuer 

ratings, assessment rates will be determined by weighting 

CAMELS component ratings 50 percent and long-term debt 

issuer ratings 50 percent. For all large Risk Category I institutions, additional risk factors will be considered to determine 

whether assessment rates should be adjusted. This additional 

information includes market data, financial performance 

measures, considerations of the ability of an institution to 

withstand financial stress, and loss severity indicators. Any 

adjustment will be limited to no more than 1⁄2 basis point. 

Beginning in 2007, each institution is assigned a risk-based 

rate for a quarterly assessment period near the end of the quarter following the assessment period. Payment will generally be 

due on the 30th day of the last month of the quarter following 

the assessment period. Supervisory rating changes will be 

effective for assessment purposes as of the examination transmittal date. For institutions with long-term debt issuer ratings, 

changes in ratings will be effective for assessment purposes as 

of the date the change was announced. 

Risk-weighted assets—assets adjusted for risk-based capital 

definitions which include on-balance-sheet as well as offbalance-sheet items multiplied by risk-weights that range from 

zero to 100 percent. A conversion factor is used to assign a 

BALANCE sheet equivalent amount for selected off-balancesheet accounts. 

Securities—excludes securities held in trading accounts. Banks’ 

securities portfolios consist of securities designated as “held-tomaturity,” which are reported at amortized cost (book value), 

and securities designated as “available-for-sale,” reported at fair 

(market) value. 

Securities gains (losses)—realized gains (losses) on held-tomaturity and available-for-sale securities, before adjustments 

for income taxes. Thrift Financial Report (TFR) filers also 

include gains (losses) on the sales of assets held for sale. 

Seller’s interest in institution’s own securitizations—the 

reporting bank’s ownership interest in loans and other assets 

that have been securitized, except an interest that is a form of 

recourse or other seller-provided credit enhancement. Seller’s 

interests differ from the securities issued to investors by the 

securitization structure. The principal amount of a seller’s 

interest is generally equal to the total principal amount of the 

pool of assets included in the securitization structure less the 

principal amount of those assets attributable to investors, i.e., 

in the form of securities issued to investors. 

Subchapter S Corporation—A Subchapter S corporation is 

treated as a pass-through entity, similar to a partnership, for 

federal income tax purposes. It is generally not subject to any 

federal income taxes at the corporate level. This can have the 

effect of reducing institutions’ reported taxes and increasing 

their after-tax earnings. 

Trust assets—market value, or other reasonably available 

value of fiduciary and related assets, to include marketable 

securities, and other financial and physical assets. Common 

physical assets held in fiduciary accounts include real estate, 

equipment, collectibles, and household goods. Such fiduciary 

assets are not included in the assets of the financial 

institution. 

Unearned income & contra accounts—unearned income for 

Call Report filers only. 

Unused loan commitments—includes credit card lines, home 

equity lines, commitments to make loans for construction, 

loans secured by commercial real estate, and unused commitments to originate or purchase loans. (Excluded are commitments after June 2003 for originated mortgage loans held for 

sale, which are accounted for as derivatives on the balance 

sheet.) 

Volatile liabilities—the sum of large-denomination time 

deposits, foreign-office deposits, federal funds purchased, 

securities sold under agreements to repurchase, and other 

borrowings. 

Yield on earning assets—total interest, dividend and fee 

income earned on loans and investments as a percentage of 

average earning assets. 

FDIC QUARTERLY 21 2008, VOLUME 2, NO. 2